Palm Oil Internet Seminar

Section 1: CPO Price Trend:
Malaysia's Palm Oil Supply and Demand Updates for 2019
Datuk Dr Ahmad Kushairi Din

Dr Ahmad Kushairi Din is the Director-General of the Malaysian Palm Oil Board (MPOB). He graduated with a B.Agric.Sc, two Msc and PhD in quantitative genetics. Dr. Kushairi specializes in oil palm breeding and genetics, where together with his team of breeders, bred 13 new varities, and prospected oil palm germplasm in Africa and South America.

He authored and co-authored 270 publications. He is well connected with the scientific community and the oil palm industry both locally and abroad. He sits as a Board of Directors in Ministries and companies, member of national committees, active in professional societies and President of The International Society for Oil Palm Breeders (ISOPB). Dr. Kushairi had served MPOB and the oil palm industry for nearly four decades since 1979.

Mr. N. Balu


• 33 years of experience in the palm oil industry – in the area of Market Intelligence/Research, Market Promotion & Market Development; Designing and Executing Counter-Trade / Offset Deals and Palm Oil Credit Payments Arrangement (POCPA) • Malaysian Trade Negotiator for Bilateral, Regional, Plurilateral and Multilateral FTAs & WTO Trade Negotiations (Focussing on Commodities) : Trade in Goods/Market Access, Rules of Origin and Trade Facilitation. • Former Newspaper Editor with the New Straits Times (in charge of Beriteks) • Former Economics Research Officer with the Consumer Association of Penang (CAP) • Chairman of Global Economics and Marketing Conference, PIPOC 2015 & 2017 • Chairman of Palm Oil Economic Review & Outlook Seminar, 2016 & 2017 • Chairman of Palm Industry Labour: Issues, Performance & Sustainability (PILIPS), 2016 • Chairman of Roundtable on Oils & Fats Global Situation, Palm Oil Familiarization Programme, POFP 2016 • Presenter of Seminar Papers at International Conferences


• Certificate in Middle Management, CBI, Rotterdam, Holland. • Bachelor of Social Science (Hons in Economics & Management), USM, Penang. • Graduate Diploma with Distinction (Business Studies), RMIT University, Melbourne, Australia. • Master in Business Management (International Marketing), RMIT University, Melbourne, Australia. • Certified Practising Marketer (CPM), AMI, Australia. • Fellow of the Australian Marketing Institute, Australia. • Management Representative (Services) and Lead Internal Auditor for ISO 9001:2008, MPOB


• Malaysian National Shipping Council (MNSC Treasurer) • Committee Member for Commodities Customs Classification, Royal Malaysian Customs Department.

The year 2018 has indeed been a challenging year for the Malaysian oil palm industry with lower palm oil production, exports and prices, but finishing with higher palm oil closing stocks. Crude palm oil (CPO) production in 2018 recorded a decline by 2.0% to 19.52 million tonnes as against 19.92 million tonnes recorded in 2017. The decline was due to lower FFB yield, down by 4.1% to 17.16 tonnes per hectare as compared to 17.89 tonnes per hectare achieved in 2017. In the global market, weaker soyabean oil prices had contributed towards lower palm oil prices. Crude palm oil price traded lower by 19.8% or RM550.50/tonne to RM2,232.50/tonne in 2018 as against in 2017. The large CPO price discount as against other major competing oils in 2018 as compared to the previous year had negatively influenced exports of palm oil, but positively influenced exports of downstream products. The strengthening of crude oil prices in particular had boosted exports of biodiesel and oleochemicals. All in all, total exports oil palm products in 2018 was higher by 3.5%, amounting to 24.82 million tonnes as compared to 23.97 million tonnes exported in 2017. However, the weaker palm oil prices had affected palm oil export revenue in 2018. Export revenue for 2018 is expected to reach RM67.74 billion, lower by 12.9% as against RM77.81 billion in 2017. In line with the decline in palm oil exports, closing stocks in December 2018 was higher by 0.48 million tonnes or 17.7% to 3.22 million tonnes vis-à-vis 2.73 million tonnes recorded in 2017. For the year 2019, Malaysian palm oil industry is forecast to perform better as CPO production is expected to recover driven primarily by favourable weather conditions as well as the expansion in oil palm matured area. Apart from that, palm oil prices in the world market is expected to be firmer in 2018 with palm oil demand expected to regain its momentum to generate higher export revenue for the Nation.

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Questions & Answers (7) :
Anthony Yap
10 hours ago
Hi Datuk /Mr Balu; based on your CPO production in 2019 is projected 20.30 mil mt. It looks like difficult to achieve. Normally 2 years post El-Nono session 1998/1999; CPO production trend to lower after 2 years. Meaning this year 2019; the production should be same or lower. As the trees need to rest after 2 years recovery from El-Nino 2015/2016. Please comments, Thanks
nasihah rashid
12 hours ago
total of smallholders that has achieved the MSPO to date? and having said that there are still a bigger gap to achieve the certification by 2020, what are the measures taken by the government to assist smallholders? In previous report, the ministry of Primary Industries said that they will be working hand-in-hand with smallholders in the plantation sector to achieve Malaysian Sustainable Palm Oil (MSPO) certification, are these initiative already start? What are other initiatives that will be taken besides this?
Roby Fauzan
12 hours ago
Please define favorable weather, is it longer sunshine? good rainfall distribution? good timing of rainfall? because many still say that we are still facing likelihood of El Nino threat in 2019
Chong Hoe Yeen
12 hours ago
Indonesia, being one of the major producer of CPO, has been steadily implementing biodiesel mandate. The B20 programme has been successful since implementation in 2016 and government is currently looking to further improve it to B30. However, Malaysia are just looking to implement B10 mandate by second half of 2019. Why is there such a gap when both countries are not having too much of an advantage in resources over each other? Is R&D being carried out proactively to prove the benefits of biodiesel over petroleum diesel? Are the result being promoted to both manufacturing sectors and the public? Are there any communication in place between the government and sectors who utilize diesel, e.g. automotive or machinery, to carry R&D in improving their engines to cope with the B10 blend or even higher?
Chong Hoe Yeen
13 hours ago
Believed that one of the reason that palm oil is being banned by EU is because of the non-sustainability. Currently in Malaysia almost 70-80% of plantations are not MSPO/RSPO certified. What are the steps being taken by MPOB to create betteer awareness in the industry? Is there any solid and firm plan to ensure all plantations in Malaysia to get MSPO certified and subsequently RSPO certified?
1 week ago
In order to break away from the normal commodity price fluctuation, Malaysia should look at supplying to niche markets with special high-quality palm oil. Is MPOB willing to spearhead and work with the industry to change the method of producing palm oil of high quality to meet such specialised markets?
3 weeks ago
Malaysian palm oil has always been a price taker of the world oils and fats. With Indonesia and the few Asian countries like Thailand and Philippines combined, we should have some influence in the oils and fats market and should be able to command some premium in palm oil against other vegetable oils. Is there any efforts to form a coalition with the other Asian palm oil producing countries instead of undercutting each other?
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