ID :
424900
Mon, 11/21/2016 - 04:36
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Shortlink :
https://oananews.org//node/424900
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Palm Oil Sector Celebrates Centennial, Output Doubles Every 10 Years
By S. Joan Santani
KUALA LUMPUR, Nov 21 (Bernama) -- Malaysia, one of the largest producers of crude palm oil in the world, enters the milestone centennial celebration of the sector, next year, amid tremendous growth.
Output has doubled every ten years and the country's impeccable track record of providing quality vegetable oil to consumers worldwide, at reasonable prices, has helped alleviate poverty in many third world countries.
Over the decades, primarily since 1980 until today, Malaysia has made major contributions to the industry and remained relentless till now.
However, changes are needed to face the industry's challenges ahead.
Dorab Mistry, a leading industry analyst at Godrej International Ltd, endorses the country's palm oil as the "Jewel In the Crown".
He said Malaysia has done wonders in terms of boosting export revenue and is still remains the "Number One" producer.
"For 90 years, you have been on your own. You (Malaysia) are the number one producer as you are doing all the propagation.
"You are being challenged by Indonesia on all fronts. So, while Malaysia celebrates 100 years, it has to re-dedicate itself to really take its competitor head on.
"At the same time, Malaysia must ensure that the markets that it has and the new markets that you're developing, go according to plan," Mistry told Bernama.
However, he pointed out that although Malaysia's palm oil industry was expanding rapidly, labour shortage has always been an issue and it was becoming more difficult to source additional workers.
"Malaysia has got to do something about its labour regulations because the labour shortage is really strangling your plantations.
"And, it has been the biggest challenge facing the country's crude palm oil sector," he said, expressing concern over the labour shortage issue which has plagued the country's palm oil industry for years.
"However, against this backdrop, congratulations to Malaysia, I think if there is an example of a country which has nursed and nurtured an industry into great prosperity, I would hold Malaysia as a fine example.
"I wish India could do what Malaysia has done," Mistry added.
Echoing Mistry's view, James Fry, Chairman of Commodities Consultancy, LMC International, said the Malaysian government needed to address the labour shortage issue which has prolonged for decades.
He said in the National Key Economic Area, the government reduced the number of foreign workers by 110,000.
"It is all right if you tell the industry how they will manage with fewer workers but you have seen the impact, you have longer harvesting periods, lower quality and it hits your yield," he said.
Meanwhile, ISTA Mielke GmbH Executive Director Thomas Mielke said Malaysia has been the forerunner in palm oil research and food research.
He said palm oil has made major inroads not only in Asia but also in the African continent as well as in central and South America.
"There has been tremendous increase in palm oil imports and consumption in Europe as well as in the Commonwealth of Independent States countries," said Mielke.
-- BERNAMA