"Sustainable Oil Palm Plantations with Improved Agronomy Practices"
Sinar Mas reported earlier in March this year, that the company is setting aside $500 million to increase its cultivated plantation area and and $1 billion through 2015 in downstream production, while Wilmar, will spend $900 million over the next three years.
Ever since the Indonesian government revised their export tax to stimulate their downstream industry, many companies have announced plans to increase its refining capacity.As a result, palm oil refineries in Malaysia and India, who are not fully integrated has been badly hit by Indonesia's new tax structure. Nevertheless, the big players like Sime Darby and IOI are scrambling to set up processors in Indonesia to tap higher margins.
How are Malaysian refineries responding to this challenge ?
As with other commodities, it is recognised that the highest value is not in plantations but in the value added downstream products - palm oil cooking oil, oleochemicals to make soap and detergents as well as feedstock for biodiesel
Will the upsurge in downstream products lead to more adoption of more sustainable practices by Indonesia ? Is there still land for expansion in this region ?
In March 2012, Jakarta Post reported that the Republic of Indonesia becomes world's biggest sustainable palm oil producer
How about opportunities in Africa and Myanmar ? What is the development potential of palm oil in these countries ?
Will Thailand be the next frontier in palm oil production ? Can India compete with the giants? What are latest developments in high yielding planting materials taken by the big palm oil producers like Univanich and Godrej Agrovet ?
CMT's 4th Palm Oil Summit brings together a multiple panel of authoritative speakers that will share issues and challenges from upstream plantations to opportunities in downstream value-added capture.
Don't delay now.
Who you will network with
Palm oil producers - from CEOs , MDs to Plantation Advisors,
Agronomists, Scientific Officers, R & D Dept Heads to Sustainability Directors,
Millers, Palm Oil Traders,
Independent Agronomy Advisors, Plantation Consultants,
IT Solution Providers, Milling Technology, Equipment Suppliers,
Fertiliser Companies, Palm Oil Research Institutes,
Agriculture Depts, Researchers,
Crop Science and Agri Biotech Cos
|PROFILE OF PAST YEAR ATTENDEES|
|Here's what delegates said about our 3rd Palm Oil Summit held in Bali on 18 & 19 July 2011|
"Pack with knowledge, informative and passionate speakers"
"An excellent platform for planters, researchers and senior plantation management to exchange and share experiences"
"Overall the conference was very informative and opportunity to meet people with similar interest"
|Related articles for your reference and reading pleasure:|
Malaysia may offset Indonesia’s palm oil export tax reduction
Posted on : 22 Jun, 2012
To boost the export of processed oil, the world’s largest palm oil producer, Indonesia will cut export duties on refined, bleached and deodorized palm oil from 23% to 10%. Sahat Sinaga, second deputy chairman of the Indonesian Palm Oil Board said that shipments of palm oil may rise this year, to benefit from the lower taxes.
In response to this, Malaysia, world’s second-largest palm oil producer, will proceed to help local refiners to stay in the running. Minister of Plantation Industries & Commodities, Bernard Dompok stated at a press conference that changes in tax structure on palm oil will be included in a plan and presented to the government. “This is certainly a big challenge for refiners in Malaysia and India,” said Dompok. “We are trying to see a balance between growers and refiners,” he added.
According to Ivy Ng, an analyst with CIMB Group Holdings Bhd, “The Malaysian refiners should get a cost advantage of feedstock similar to that currently being enjoyed by the Indonesian refiners so that they can compete on the same level playing field.” She also said that Malaysia may consider cutting the export tax on crude palm oil and abolish a quota for tax-free exports of as much as 3.5 million tons annually.
Meanwhile, the world’s biggest palm oil buyer, India, may raise the benchmark import price of refined palm oil to protect refiners from a surge in imports, as said by a government official recently. About 89% of the oil’s global shipments stem from Malaysia and Indonesia.
At the 4th Palm Oil Summit on 09-10 July in Bali, Mr. Mohammad Jaafar Ahmad, CEO at Palm Oil Refiners Association (PORAM), will share more on the refining margins and what standalone refiners can do to tackle the problem, with a session titled “Outlook for Malaysian Palm Oil Refineries in Challenging Times”. Additionally, Mr. Chris de Lavigne, Global VP, Industrial Practices, at Frost & Sullivan will present a talk on “Global Outlook for Oleochemicals & Shaking Up of Indonesia’s Markets”. Register here to attend this event, or forward enquiries to Ms. Hafizah at email@example.com
Extracted from Businessweek.com
Indonesia becomes palm oil refineries hotspot, with annual refining capacities expected to increase in 2013
Posted on : 29 May, 2012
The recently restructured tax incentives in Indonesia, the world’s biggest palm oil producer, are an effort to attract investments for cooking oil, oleochemicals and biodiesel. To encourage higher refining capacity and downstream activities, the government had raised export taxes on crude palm oil, eight months ago.
The nation’s current annual refining capacity is estimated at 23 million tonnes, with expected annual capacity to reach 35 million tonnes in 2013.
Managing Director of Lipochem Sdn Bhd, Koh Pak Meng said in an interview that the company recently won a bid to put up a refinery in Indonesia. He also remarked that clients now want super-sized refineries to reap economies of scale. The new multi-fed plants are designed for energy efficiency and water-saving, while being fail-safe and fully-automated.
In another interview, Desmet Ballestra Malaysia’s managing director, Khoo Kiak Kern said that they too were putting up new plants in Indonesia. “Here in Malaysia, we're doing some expansion and upgrading works for the refiners," he added.
Yet another European-headquartered entity establishing itself in Indonesia is Alfa Laval Malaysia Sdn Bhd. The added advantage they have is because it doubles as an equipment manufacturer too.
At the 4th Palm Oil Summit in Bali on 09-10 July, industry experts will share their viewpoints and discuss at length the refining challenges and downstream markets. The presentations will provide a more comprehensive outlook on the opportunities in Indonesia including topics covering specialty oils and fats, information on high performance chemicals from palm oil, as well as MES and palm biodiesel. To attend the event, Register here, or contact firstname.lastname@example.org for further queries.
Read complete article here.
Indonesia’s crude palm oil prices drive Malaysian refiners to seek government incentives
Posted on : 03 May, 2012
The downstream activity of the Malaysian palm oil industry is negatively affected by the high and rising cost of crude palm oil (CPO) and strong Indonesian competition. To overcome this, the Palm Oil Refiners Association (Poram) in Malaysia is planning to submit a comprehensive proposal to the government. This includes seeking government incentives as well.
PORAM’s chief executive officer Mohamad Jaafar Ahmad said, “The proposal will involve a whole range of proposals that will see some give and take from industry players but more importantly, it is palatable to all — the refiners, plantations companies and smallholders.” He also said that the proposal was the culmination of feedback from industry players. The price of feedstock or CPO had risen by about 18% since the past year. The local palm oil refiners were also facing a local CPO supply shortage – the country’s production is about 18 million tonnes per year, while the refinery capacity stands at 23 million per year, which calls for importing the shortfall. CPO production in Indonesia is much cheaper, with one industry executive commenting that the prices are about 15% cheaper than Malaysia. According to Felda Global group President Datuk Sabri Ahmad the tax structure could be the reason for the cheaper CPO prices enjoyed by the neighbouring republic.
Discussion on the above matters plus more are expected to be included in the agenda for the 4th Palm Oil Summit in Bali on 09-10 July where invited speakers will also explore latest innovations in value addition in downstream processing and improved agricultural practices and mechanisation.
Details of the conference are currently being finalized and will be available soon.
Pre-Register to reserve seats for this event.
Direct further queries to Ms. Hafizah, email@example.com
View complete article here.
Palm oil consumption to double in 2012, says RSPO
Posted on : 30 Mar, 2012
According to Roundtable on Sustainable Palm Oil (RSPO) total global sustainable palm oil consumption will double this year due to increasing demand. The production of Certified Sustainable Palm Oil (CSPO) or green palm oil has grown to 11 per cent from the five million tonnes of global crude palm oil output in 2011 according to Secretary-General Darrel Webber. He commented that Malaysia is leading as top producer, contributing 48 per cent share, with Indonesia 40 per cent followed by Papua New Guinea, South America and West Africa. Certified products are gaining foothold, contributing to the increasing demand.
More updates on Demand for Certified Sustainable Palm Oil & its future for European & US markets will be provided at CMT’s 4th Palm Oil Summit in Bali. The conference on 09-10 Jul, 2012 also focuses on Replanting trees with higher yielding varieties, improved agriculture practices and mechanization, value addition in downstream processing including improved oil extraction rates.