Malaysia attacks U.S. soya bean farmers
Malaysia attacks U.S. soya bean farmers
KUALA LUMPUR (AFP): Malaysia, the world's biggest palm oil
producer, complained Tuesday that soya bean farmers in developed
countries were depressing prices in the international oil and
fats market.
Primary Industries Minister Lim Keng Yaik said a glut of soya
oil in the world market towards the end of last year pulled down
palm oil prices by about US$100 a ton in the last two months.
"Price of palm oil has been falling for the last two months
although it is still at a premium to the other oils in the
international market," he told a news conference after opening an
international palmoil conference.
"This is mainly because it has been dragged down by the
falling prices of soya oil," he said. "Soyabean oil has gone
below near production cost. At $480 a ton, soya oil price is at
its lowest in 11 years."
Lim slammed soyabean growers in the United States and other
developed nations, saying that an oversupply of the crop had
"almost killed the international oil and fats market.
"Developed countries should not oversupply and then dump their
soyabean oil in the international market. Unfortunately, there is
no anti-dumping law about this matter," he said.
He urged soyabean growers to "think twice of planting soya
crops this year.
"If not because of (government) subsidies, they would have
been out of the market a long time ago. The irony is that we
developing countries have to tax our industry, yet we can compete
in the global market," he added.
After peaking to over 2,400 ringgit ($632) a ton last year,
Lim said palm oil prices were now hovering around 2,000 ringgit,
which is still at a premium of about $60 to $80 compared to other
oils.
"Palm oil prices should maintain -- although not at high
levels like last year -- at around 1,800 to 2,200 ringgit per
ton," he said.
But he warned that palm oil faced the threat of being replaced
by other cheaper oils.
"If we stay at too high a premium for too long, we may be
replaced in the international market," he said. "1998 for palm
oil was a phenomenal year but that phenomena will be very
difficult to maintain."
Malaysia accounts for about 50 percent of the global output
and 22 percent of the international oil and fats trade.
Earlier in his speech, Lim said Malaysia's palm oil export
earnings surged to 22.5 billion ringgit last year, up 86 percent
from 12.1 billion in 1997, making it the second largest export
earner after electronics.
The country had a 64.5 percent share of the world palmoil
export trade last year, he said.
Although output dipped by about nine percent to 8.3 million
tons in 1998, Malaysia remained the world's largest producer,
followed by Indonesia accounting for 30 percent of global output.
Lim noted that experts predicted global demand for palm oil to
reach 24 million tons by 2005, and surge to 44 million tons by
2020, with Malaysia and Indonesia expected to supply about 70
percent.
"This is not adequate and action has to be taken to enable us
to meet the increasing global needs for palm oil and ensure a
steady supply of the oil to the world," he said.
Lim said a "smear campaign" by the American Soyabean
Association against tropical oils had lost steam but the palm oil
sector still faced hiccups in new markets.
He urged local producers to tap downstream industries, saying
that oil palm waste could be used to develop the pulp and paper
industry.
Some 1,000 delegates from 30 countries are attending the six-
day biennial conference, themed "Emerging Technologies and
Opportunities in the Next Millennium," aimed at charting new
directions for the palm oil industry.