KUALA LUMPUR, Jan 16 — The Malaysian Palm Oil Board (MPOB) expects 2020 to be a better year for the palm oil industry, with the crude palm oil (CPO) price seen averaging at RM2,750 per tonne.
MPOB director-general Ahmad Parveez Ghulam Kadir said the CPO price was expected to be stronger this year, spurred by higher demand for the commodity following the implementation of the B20 biodiesel programme in Malaysia and B30 in Indonesia.
“Starting the year with low opening palm oil stocks and strong palm oil demand, 2020 is predicted to be a better year for the industry.
“Another factor that will influence the price is the firmer soybean oil price,” he said when presenting his paper on “The Malaysian Palm Oil Industry Performance 2019 and Prospects for 2020” at the Palm Oil Economic Review and Outlook Seminar 2020 here, today.
Ahmad Parveez said the export revenue from palm oil products was expected to increase by 21 per cent to RM78 billion in 2020 from RM64.45 billion recorded last year in anticipation of firmer CPO price this year.
In 2019, Malaysia’s total oil palm product exported rose by 12 per cent to 27.86 million tonnes from 24.88 million tonnes in the previous year.
However, total export revenue slipped by 4.5 per cent to RM64.45 billion from that in 2018 due to lower palm oil export prices.
Nevertheless, he added, the higher export of palm oil products in 2019 had offset the fall in the price of CPO during the year.
Meanwhile, the export volume of palm oil increased by 12 per cent to 18.47 million tonnes from 16.49 million tonnes in 2018, partly due to the exemption of CPO export duty which was implemented from May to December 2019.
Commenting on the US-China phase one trade deal which was signed yesterday, Ahmad Parveez said he hoped the good relationship between Malaysia and China would not affect Malaysia’s exports to the republic in the near future.
“The good relationship between China and Malaysia is there...so hopefully their imports of palm oil from Malaysia will not be affected,” he added. — Bernama