Palm oil promotion including funding requirements

Abstract

The Malaysian Palm Oil Industry, which started in the early sixties , has undergone an unprecendented growth todate. From a modest modest 91,973 MT in 1960, the production reached 4,532,869 MT in 1987. The present estimates put CPO production at 5.5 million MT for 1990, and in excess of 7.5 million by the year 2000.

In a similar manner the Refining Industry, which started in the early Seventies, has also achieved exceptionally rapid growth. Prior to this, palm oil was exported in its crude form and in 1975, processed palm oil only accounted for 17.5% of the total exports of Malaysian palm oil . Today, 96% of palm oil exports to the overseas markets are in the form of refined oils. Following the shift from crude to the processed form, there was also a change in the market destinations. In the Sixties and early Seventies, exports of Malaysian palm oil were mainly to the industralised countries, which up to 1975 accounted for 85% of the market share. Presently, their market share has been reduced to about 25% of the total, and the main markets are now India, Pakistan, Bangladesh, the Middle East, East Africa, USSR, South Korea and China which is fast becoming an important importer for processed palm oil. Palm oil has become a well accepted commodity in the world oils and fats market, and has proven to be extremely versatile in its usage and applications.