FJB Eyes Higher PKS Export Volume To Japan In 2018

By Zairina Zainudin KUANTAN (Pahang, Malaysia), Aug 24 (Bernama) -- Felda-Johore Bulkers Sdn Bhd (FJB) is eyeing to double its newly-ventured export of palm kernel shell (PKS) to Japan next year from 60,000 metric tonnes targeted for this year. Chief Executive Officer Mohamad Zuki Wan Abdullah said the better shipment would be mainly supported by the expected increase in fresh fruit bunches production by 50 per cent on the back of post-El Nino effect, coupled with increased number of shipments to the country. He said the higher production of PKS as at July this year, which has already exceeded the 2016 total production, would also contribute to the target of 120,000 metric tonnes next year. "Currently we are exporting on a bi-monthly basis, but I expect the frequency to be increased to a monthly basis by year-end. "We have seen the contribution of this business to our financial year. We can generate more turnover and revenue for FJB and Felda Global Ventures Holdings Bhd (FGV) as a whole," he told reporters during a media visit to FJB's PKS warehouse in Kuantan Port here, Wednesday. Felda-Johore Bulkers Sdn Bhd is is a subsidiary of FGV. Zuki said the company planned to expand its PKS warehouse in Kuantan by another 6,000 metric tonnes to cater to the rising demand for the commodity, expected from 2018 onwards. With the higher capacity, he said FJB aimed to export PKS to China and South Korea’s markets in the near future. "We have received queries from China and South Korea but we do not have sufficient volume yet. "The Japanese market is our pioneer project for now. When we have achieved the required capacity, we might expand our exports to China and South Korea," he said. PKS production from FGV palm upstream business is estimated to grow to 120,000 metric tonnes in 2018 up from 100,000 metric tonnes this year, he said. Malaysia and Indonesia are the world’s main PKS-exporting countries, while the major importing countries, comprised Japan, South Korea, China, European countries, and the United States, he said, adding that Malaysia enjoyed 54 per cent share in the Japanese market in 2016 with the remaining held by Indonesia. He said FGV has exported approximately 30,000 metric tonnes of crude PKS to Japan since late 2016. The first shipment was at the end-November 2016, while the second was in January, 2017 and the third shipment of 10,000 metric tonnes is targetted to depart on Aug 24, 2017, he added. “Industry demand of PKS in Japan is estimated at 1.5 million metric tonnes in 2018 and this would likely grow to 20 million metric tonnes by 2030,” he said. The current market price of cleaned PKS is between US$75 and US$85 per metric tonne and the price trend is increasing, he said, adding that the price is expected to touch US$95 per metric tonne or even more within the next few years on the back of rising demand for the commodity. -- BERNAMA