The palm oil industry needs to increase yield sustainably through research and innovation, says Sime Darby Plantation Sdn Bhd Managing Director, Datuk Azhar Abdul Hamid.
“It is a fact that oil palm has the highest yield per hectare.It also has the highest productivity cycle of 25 years.
“But we can only grow the oil palms around the equator, which means any more land clearing, would have a catastrophic impact on the world’s climate.
“Therefore, we have to increase yield along with productivity and quality.This we can only do through research and innovation,” he said, in his keynote address at the Palm and Lauric Oils Conference & Exhibition: Price Outlook 2010/2011, here Tuesday.
According to Azhar, to increase efficiency, there is a need to implement process improvements such as mechanisation, automation, yield forecasting, manuring programmes and focal feeding.
Besides this, he said to ensure greater sustainability, the industry could make money out of palm waste.
He said a main advantage of palm oil is its production cost and high yield per hectare.
“If we lose our lead in either of these areas, the future of the industry will be at stake.This is apart from facing tremendous pressure from anti-palm oil lobbyists’, who are tarring the whole industry with the same brush,” he highlighted.
Azhar said over the long term, demand for vegetable oils would continue to outstrip supply, and it is possible for palm oil to become the most sustainably produced vegetable oil in the world.
He noted that in 2010, palm oil is expected to account for 34 per cent or 44 million metric tonnes (MT) of the global vegetable oil supply and yet, it occupies less than five per cent of total agricultural space.
“Obviously, we are far more efficient than our competitors. However, this year, soybean oil is expected to beat demand for palm oil,” he noted.
“With the global population projected at 7.2 billion by 2015, this trend is going to reverse itself, as we expect to see palm oil commanding a 40 per cent market share at 64.5 million MT.
“Soyabean oil will take second spot at 33 per cent or 53.4 million MT.
“By 2020, palm oil should have a 46 per cent market share at 94.3 million MT. Soybean oil should still be playing second fiddle then, at 29 per cent of the market share or 60.7 million MT,” he said.
However, Azhar reiterated that these numbers are projections and estimates, based on current data.
More Recent Palm Oil News 
- Crude Palm Oil Ends Up On Weekend Short Covering; Upside Limited
- Crude Palm Oil Recovers Late On Short Covering
- Crude Palm Oil Ends Down As Demand Prospects Weaken
- Crude Palm Oil Rises Slightly; Weak Demand Limits Upside
- Crude Palm Oil Ends Up On South America Crop Worries
- Crude Palm Oil Rises On Pre-Holiday Short-Covering
- Crude Palm Oil Falls Due To Bearish Export Outlook
- Crude Palm Oil Ends Higher On South America Weather
- Crude Palm Oil Ends Down On Profit Taking; USDA Report In Focus
- Crude Palm Oil Rises In Light Trade; USDA Data In Focus
- Crude Palm Oil Steady; South America Weather May Underpin
- Crude Palm Oil Ends Up In Light Trade; Fresh Cues Awaited
- Crude Palm Oil Ends Up On Weather Concerns; More Gains Likely
- Crude Palm Oil Ends Down On Profit Taking, Europe Worries
- CPO Ends Unchanged; May Slip Toward MYR3,200 After Recent Rally
PRO Palm Oil Live Market News
- China Soybean Futures Rise A Tad On South America Output Worries
- China Dalian Commodity Exchange Grain Stocks, Feb 07
- China Dalian Grain Futures Closing Prices, Volume
- Asia-Pacific Commodities Events Calendar
- Southeast Asia Palm Oil Weather – Feb 6
- European Veg Oil PM Palm Oil & Lauric Oil Prices – Feb 6
- European Veg Oil AM Palm Oil & Lauric Oil Prices – Feb 6
- India Commodity Prices Including Palm Oil – Agriculture
- China January Soybean Imports Likely 4.86 Mln Tons -Ministry
- SUBSCRIBERS: No Asian CPO Closing Comment Monday, Tuesday
- China Soybean Futures Hit 3-Month High On Strong U.S. Jobs Data
- China Dalian Commodity Exchange Grain Stocks, Feb 06
- China Dalian Grain Futures Closing Prices, Volume
- SUBSCRIBERS: No Malaysian Palm Oil AM, PM Cash Market Prices Mon-Tue
- Asia-Pacific Commodities Events Calendar
