Malaysia's edible oil players won't be hit by biodiesel demand
Quicknote food versus fuel
The increasing demand for biodiesel will not be a threat to local edible oil players as palm oil production is on the rise as well, says the Malayan Edible Oil Manufacturers Association (Meoma).
Palm oil production is expected to grow to 15.75 million tonnes this year and to 16.3 million tonnes in 2007, said Meoma outgoing president Sharuddin Tegoh after its annual general meeting in Kuala Lumpur last Saturday. The country produced 14.9 million tonnes of palm oil last year.
The association said another reason why the growth in biodiesel demand will not be a threat to the local edible oil players is because of the low consumption. “Local edible oil consumption is only around 5-7 per cent of the country’s total palm oil production,” vice-president B. H. Kuek said.
With the increasing demand in biodiesel, some industry observers are worried that the sudden hunger for biodiesel projects may eat into the portion of crude palm oil (CPO) reserves that are meant for food and oleochemical producers. However, three weeks ago, the Government made a move to address the concern — by temporarily freezing the issuing of biodiesel licence.
“Licence issuing will cease pending the completion of a comprehensive review of all palm oil-based downstream industries,” Plantation Industries and Commodities Minister Datuk Peter Chin Fah Kui had said on June 29. Sharuddin also said that the industry has become more competitive. “It is therefore imperative for all the industry players to always strive for better efficiency and productivity in their operation to sustain the competitive edge.”
[Entry ends here]
biodiesel :: palm :: biomass :: bioenergy :: biofuels :: energy :: sustainability ::
The increasing demand for biodiesel will not be a threat to local edible oil players as palm oil production is on the rise as well, says the Malayan Edible Oil Manufacturers Association (Meoma).
Palm oil production is expected to grow to 15.75 million tonnes this year and to 16.3 million tonnes in 2007, said Meoma outgoing president Sharuddin Tegoh after its annual general meeting in Kuala Lumpur last Saturday. The country produced 14.9 million tonnes of palm oil last year.
The association said another reason why the growth in biodiesel demand will not be a threat to the local edible oil players is because of the low consumption. “Local edible oil consumption is only around 5-7 per cent of the country’s total palm oil production,” vice-president B. H. Kuek said.
With the increasing demand in biodiesel, some industry observers are worried that the sudden hunger for biodiesel projects may eat into the portion of crude palm oil (CPO) reserves that are meant for food and oleochemical producers. However, three weeks ago, the Government made a move to address the concern — by temporarily freezing the issuing of biodiesel licence.
“Licence issuing will cease pending the completion of a comprehensive review of all palm oil-based downstream industries,” Plantation Industries and Commodities Minister Datuk Peter Chin Fah Kui had said on June 29. Sharuddin also said that the industry has become more competitive. “It is therefore imperative for all the industry players to always strive for better efficiency and productivity in their operation to sustain the competitive edge.”
[Entry ends here]
biodiesel :: palm :: biomass :: bioenergy :: biofuels :: energy :: sustainability ::
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