Thursday, November 10, 2011

Palm oil prospect

Palm oil prospect can be evaluated from its strength and opportunity. The expansion of its agribusiness is one of the steps required as plantation sub-sector development activities in order to revitalize the agricultural sector. The growth of various subsystems that is very rapidly in this agribusiness since the late 1970s is the evidence for the rapid movement of this industry. World's palm oil demand has increased in the last two decades, first for use in food, consumer products, and more recently as the biofuel raw materials. Malaysia and Indonesia account for approximately 87 percent of world production.

This commodity with its various uses for both food and non food industries, show the development which is not only associated with the growth of vegetable oil in Indonesia and the world, but also related to the growth of other sources, such as soy, rape seed and sunflower. In terms of competitiveness, palm oil (PO) has a good competitiveness compared to others, because: (1) its productivity per hectare is quite high, (2) it is an annual plant which well adapt to various agro-climate change, and being reviewed from its nutritional aspects, it has not been proven to cause increased cholesterol levels, and even contain beta carotene as a source of pro-vitamin A.
CPO (Crude Palm Oil) is a major commodity of plantation sector in Indonesia which is the second largest producer after Malaysia. Various advances have been gained in development of its plantations and a variety of benefits has to be realized as a result of this agribusiness actors efforts. Support from various parties such as banking, research and other economic infrastructure support by the various agencies involved in this sector is very important role. Its tree which is an annual plant may play a role in the absorption greenhouse gases or other environmental services such as biodiversity conservation or eco-tourism.
Palm oil prospect in Indonesia gave a very positive impact in national establishment, since PO is one source of foreign exchange from non-oil sector which is quite important. World vegetable oil consumption always exceeds its production so that the tendency of the world vegetable oil prices will always go up. From World Oil: production and consumption of edible oils during the period 2008-2012 is estimated to 132 million tonnes, while production is only 108 million tons so it needs a new supply of 24 million tons.
Palm oil has better prospects than others in the future due to several factors, among others:
1. Palm oil productivity is quite high compared to others.
2. For annual crops, PO is easier to adapt to its environment compared to others such as soybeans and sunflowers.
3. Judging from the healthcare, PO has the advantages when compared with others because they contain beta-carotene as pro-vitamin A and vitamin E
4. PO can also be used as raw materials for oleochemical industry which has the advantages compared to products made from petroleum. Palm oil is a source of raw materials that can be renewed (renewable), while petroleum is expected to be depleted within the next few years.
5. Oleochemical products are made from PO is safer, because its edible nature of and it is friendly to the environment and is easily broken down.
The increasing demand for vegetable oils is in line with population growth and economic growth. Therefore, plants with higher productivity of oil will meet the expectations of market demand in the future. PO productivity is up to 4 tons / ha / year exceeds the productivity of soybeans which is only 0.4 tons / ha / year and 0.57 tons of rapeseed oil / ha / year. In addition, Konferensi Minyak Sawit Indonesia VII (7th Indonesian Palm Oil Conference) held in Bali by GAPKI can provide a clearer picture about palm oil prospect.

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