Malaysia’s palm oil production to reach 18 million tons

Malaysian palm oil production is expected to recover and reach 18 million tons this year, in line with growing demand for palm oil products, said Minister of Plantation Industries and Commodities Tan Sri Bernard Dompok. In 2009, exports of palm oil products declined by 24%, to RM49.59 billion (US$14.42 billion) compared with RM65.2 billion (US$18.96 billion) the previous year due to the lower average price of crude palm oil (CPO). Last year, the average CPO price was RM2,244.50 (US$652.66) compared to RM2,859.50 (US$831.49) in 2008. In terms of volume, palm oil products, which is comprised of palm oil, palm kernel oil, palm kernel cake, oleochemicals, biodiesel and finished products, grew by 2.9% to 22.40 million tons last year, from 21.76 million tons in 2008. China remained the biggest importer of Malaysian palm oil, which rose by 6.3% to 4.03 million tons, from 3.79 million tons in 2008. (February 2, 2010)