KL eyes S. America oil palm ventures

KL eyes S. America oil palm ventures

KUALA LUMPUR (DPA): Malaysia, the world's biggest producer of palm oil, said yesterday it will offer its expertise and help to open up oil palm cultivation in South American countries through joint ventures.

Primary Industries Minister Lim Keng Yaik, who recently led a trade mission to Mexico, Ecuador and Brazil, said there is vast potential for palm oil production among the region's countries which share Malaysia's equatorial climate.

"Malaysia is ready to provide the necessary technical know-how and expertise in respect of managing the plantations and setting up processing and refining facilities," he said in a statement.

Lim singled out Brazil's northeastern Para state as offering the best conditions for growing palm oil. He added that two Brazilian plantation firms are interested in teaming up with Malaysians to produce the oil.

Urging the Brazilians to seize the opportunity to develop the palm oil industry, Lim said Malaysia last year earned about US$5.2 billion in exports of palm oil which the country has been cultivating for two decades.

Malaysia last year produced 7.8 million tons of palm oil, exporting 6.5 million tons which accounted for 62 percent of the world's total palm oil exports. Most exports were to Pakistan, China and India.

Malaysia is encouraging its plantation companies to open up ventures in suitable agro-climatic countries like Indonesia, Philippines, South America and Papua New Guinea because of a severe labor shortage at home, as well as to ensure a continuous supply of raw materials for the country's palm oil-based industry and refineries.

Lim said Malaysia's oil palm production is expected to increase to more than eight million tons by 2000, in line with the anticipated rise in the world's consumption of oils and fats from 85 million tons now to 116 million tons by 2000.