Asia cutting back on edible oil exports

Asia cutting back on edible oil exports

SINGAPORE (AFP): Asia's leading vegetable oil exporters
Malaysia, Indonesia and the Philippines are expected to have a
smaller increase in exports this year despite improved
production, a U.S. official said.

Herbert Rudd, head of the oilseeds and products division in
the U.S. Department of Agriculture, said Friday the combined net
exports of the three countries were forecast to increase to 10.1
million tons, or only three percent, above last year.

"This is much less than last year's sharp increase of seven
percent, achieved only by depleting stocks which at current
levels must now be maintained," Rudd told an Asian Edible Oil
Markets conference in Singapore.

The U.S. department of agriculture forecast combined vegetable
oil production in Malaysia, Indonesia and the Philippines at 15.4
million tons, nearly seven percent more than last year, Rudd
said.

Malaysia, Indonesia and the Philippines account for some 16
percent of world total output of oils and fats. The major
vegetable oils produced and exported by these countries are
coconut oil, palm oil and palm kernel oil.

Rudd also said that there would be significant shifts in
vegetable oil production in the region.

Based on studies done by the U.S. department of agriculture,
production of palm oil, of which Malaysia is the world's largest
exporter, was projected to be six percent above last year's 13.4
million tons.

In contrast, soybean oil production would be over 19 million
tons, or seven percent above 1994, Rudd told the conference,
attended by about 100 producers, traders, refiners, financiers
and shippers.

The two-day conference that ended Friday was also told that
global vegetable oil use was forecast to be five percent above
last year's 64 million tons, the largest growth in recent years.

The bulk of the increase stems from palm oil at about 800,000
tons, soybean oil at 600,000 tons and rapeseed oil at 400,000
tons.

Rudd said that the United States was expected to import some
620,000 million tons of coconut oil and palm and palm kernel oil
this year compared with 591,000 tons last year and 664,000 tons
in 1993.