Ups and Down with the Malaysia's "Elaeis guineensis"

         Elaeis guineensis, or more familiar with the name of "Kelapa Sawit" among Malaysian. It is one of our nation main Economical Generator as Malaysia is the second largest exporter for this Palm Oil tree products such as cooking oil, biodiesel, cosmetics and etc. Easier to said  that this Oleochemicals (Industry of Natural Oil), are renewable sources but also biodegradable which means that they ensure environmentally friendly products.

         The palm tree has been around since ancient times and mention of it can be found in plenty of old historical manuscripts. Making products from palm oil is not new but traditionally it was found in the wild. It was only in the early 20th century that we see the beginnings of an industry in Malaysia , specifically Selangor which was the birth of the huge Palm Oil Industry we now see in Malaysia. 

          If you are a mature adult familiar with Malaysia you might remember driving through the roads many decades ago and seeing myriads of rubber trees. Well, previously Malaysia depended much on rubber as well as tin. Malaysia decided to implement new ideas so that it could avoid too much dependance on those products for its economy. In the 60's the government had the foresight to start schemes for land owners to alleviate the poverty level and promoted the planting of palm oil seeds. 

       Those are the time as the first step for Malaysia as an active nation in producing palm oil products. It is the time of glory for Malaysia in expanding their source of industrialization rather than depending on rubber and tin. Products made out of palm oil were a real hit back then, however in every happy moment, a dark time shall rise. This is what happening to our palm oil industry right now.

       Malaysia is now facing a turnbuckle as we have been processing huge amount for oversea markets for centuries, despite all these years we've been through the demand never ceased down at all yet they were always increasing. Regardless of all that, we are now in trouble as our output were have overflowed and were are having some storage problem with these output, and this was all due to less demand from overseas especially from Europe and China.

         Plantation Industries and Commodities Minister Tan Sri Bernard Dompok told a conference in Kuala Lumpur today. It is important to maintain adequate supply of edible oils for the world market at affordable prices. I am optimistic that palm oil is poised to meet this challenge.

          Palm oil for December delivery fell 0.9 per cent to end at RM2,500 on the Malaysia Derivatives Exchange last week after the tax changes were unveiled, and the contract declined a further 2.2 per cent to RM2,444 at 10.36 a.m. today. Last month, futures dropped 16 per cent as inventories climbed, the biggest drop since October 2008. The most-active price touched RM2,230 on Oct 3, the lowest since November 2009. 

           Reserves in Malaysia may reach 3 million tons by January, according to a forecast on Sept 23 from Dorab Mistry, a director at Godrej International Ltd. The countrys output may be 18 million tons this year, he said then. The commodity is used in foods and biofuels. & Bloomberg 

Source: http://www.palmoil.tv & http://www.malaysianpalmoil.com