Malaysia eyes ‘stable’ palm oil exports to PH

Malaysian palm oil producers want to maintain or slightly increase exports to the Philippines amid increasing demand for both food and nonfood products such as fuel.

Dato’ Lee Yeow Chor, chairman of the Malaysian Palm Oil Council, said during the Malaysia-Philippines Palm Oil Trade Fair and Seminar on Thursday that Kuala Lumpur shipped some 500,000 tons of palm oil alone in 2014, more if related products are counted.

“We are already coming from a high base in terms of oil and fats exports to the Philippines. We expect to maintain or slightly increase exports,” Lee said.

Dato’ Ar. Wan Khair-il Anuar said the Philippines is currently a small market for palm oil, but this is expected to grow amid economic development. Besides food applications, palm oil can also be used for fuel.

Based on government statistics, Malaysia exported some 500,000 tons worth $420 million of palm oil products to the Philippines in 2014. Indonesia shipped 200,000 tons, which is estimated to be worth $180 million.

These did not include so-called downstream products like oleo-chemicals and bio-diesel.

The total palm oil export in the world in 2014 was valued at $34 billion. Indonesia supplied $17 billion; Malaysia, $12 billion; Thailand, $200 million; and the Philippines, $36 million.

Experts estimate there are 200,000 to 250,000 hectares of available land that can cater to a small local palm oil market. However, there are risks to oil production because palm does not grow naturally in the Philippines. It drains soil nutrients, overtakes forest areas, and may compete with coconut in terms of land use.–Riza Olchondra