ECONOMETRIC STUDY ON MALAYSIA'S PALM OIL POSITION IN THE WORLD MARKET TO 2035 (abstract)

摘要

Palm oil is an important and versatile raw material for both food and non-food industries. It is the largest edible oil accounted for 27% or some 45 million tones of world oil and fats production in 2009 and it replaced coconut oil and tallow as the main feedstock for the global oleochemical industry. Palm oil is also becoming a more important raw material for transport biofuels. Rising oil prices along with strong intention to reduce GHG emissions of transport sector has driven up demand for palm oil as feedstock for transport biofuel, owing largely to its remarkably higher annual oil yield and lower production costs compared with other vegetable oils such as soybean, sunflower, rapeseed. In 2009, 2.5 million tones of palm oil were used globally for biodiesel production. In domestic market, palm oil plays an important role in supporting Malaysia's economy. It dominates the local edible oil market, and is the indigenous raw material to oleochemical and food industries in Malaysia. With its large and growing palm oil industry, Malaysia has the potential to play a major role in the world food and biofuel markets. This paper aims to perform quantitative analysis on (1) domestic supply and demand outlook of Malaysia's palm oil, including biodiesel demand; and (2) its ability to supply to the global markets to 2035 in the context of restricted expansion of palm oil plantation area.