CPO market in 2011 more prospective

International market of crude palm oil in 2011 is more prospective than predicted this year. Post-crisis recovery of the world economy which led India and China make crude palm oil (CPO) demand rose sharply.

Bitter rivalry between the consumption of food and energy also will be repeated as the year 2008 as the policy of some countries require that biodiesel beginning in 2010. The producers of crude palm oil (CPO) in Indonesia and Malaysia should take advantage of this momentum to boost production by responding to increased demand. This is sticking in the Indonesian Palm Oil Conference 2009 in Nusa Dua, Bali.

These predictions is the analysis of Thomas Mielke of Oil World (vegetable oil research institute based in Hamburg, Germany), Derom Bangun of Indonesian Palm Oil Council (DMSI), Ambono Janurianto of Bakrie Sumatera Plantation, and John Baker of Rabobank International.

Mielke said, the supply of vegetable oil since September 2009 until February 2010 is still limited so the price potential to increase in the next five weeks. Production of sunflower oil and canola are also weaker dependence on crude palm oil and soybeans increased.

Crude Palm Oil has now reached 56 per cent of world exports and record the highest market share growth of other vegetable oils. World crude palm oil market share grew from 11.4 million tons in 1990 to 46.6 million tons in 2009. According to Derom, January-February 2010 was a period of soaring crude palm oil demand, especially from India and China. Derom estimates, the CPO price in Rotterdam can range from 800-825 U.S. dollars per ton and 2,700 U.S. dollars per ton in Malaysia in the quarter I-2010.

Indonesian Palm Oil exports hampered by Negative Campaign

Negative campaign of Indonesia crude palm oil (CPO) still too often in Europe which affecting the CPO exports, after the global crisis. "CPO exports should recover as the impact of the global crisis began to overcome their respective consumer countries, but because of the negative campaign of palm trees, the export volume has not as expected," said Executive PT Asian Agri Laksamana Adiyaksa in Medan, North Sumatera, Sunday (15/11).

Negative campaign from palm trees destroying the forest to palm oil consumption could cause cancer, the most intensively conducted in Europe since a long time until today. It is suspected that the negative campaign to disrupt the marketing of palm oil is increasingly shifting the position of vegetable oil.

Issues that continue to grow in Europe, Adiyaksa said, because once Europe is the largest buyers of CPO Indonesia, thereby reducing the supply of other vegetable oils. "Today there was a shift most of CPO buyers, China and India. Purchase of European reduced and should be recognized for the impact that negative campaign," said the admiral who served as treasurer of the Joint Indonesian Palm Oil Entrepreneurs (Gapki) of North Sumatera.

To avoid continuing interference of Indonesian CPO marketing, cpo industrialist and the government must have a strong commitment to fight those negative campaign. Resistance that can be done by making a scientific study on the CPO content related to human health problems, the impact of oil palm crops on the environment and the need to expand market share.

The cpo industrialist do not dwell on India and China markets which today the inquiry is continuing to increase, but also to other countries that have prospects such as the Middle East and Africa, he said.

CPO businessmen and government together to strengthen the domestic market by opening up industrial oil product. Secretary General of Oil Palm Growers Association premises (Apkasindo) Arsjad Asmar admits, resistance to negative campaigning of oil had to be strengthened and the association was prepared to engage in such resistance. Apkasindo is involved against the negative campaign, Asmar said, is because to save the oil palm farmers which has amount enough. "If price and volume of crude palm oil (CPO) exports fell, the price of farmers’ TBS is also depressed," he said.