Tuesday, November 8, 2011

Threats to palm oil business

Threats to palm oil business came through the anti-palm oil campaign that continues to this day. Even the pressure given to that industry may be growing stronger in the future. The campaign theme is still associated with the issue of climate change and environmental degradation. The series of such campaigns will be more systematic, which not only carried out by NGOs alone but by certain consumer groups and some countries in the European Union, through the threat of new standards enforcement in the palm oil trade and apply the rules in the form of non-tariff barrier.
According to the results of the ICBS (2000) that the American Soybean Association (ASA) conducted a policy of unfair trade (not fair) with a campaign that the CCO (crude coconut oil) and CPO contain saturated fatty acids and high cholesterol which are not good for health. This course will build a negative brand image as well as threats to business, especially palm oil from Indonesia. It because soybean oil produced by American countries is more expensive than PO and is unable to compete with PO. Soybean oil export share even have started to be taken over by the CPO. Its production costs only U.S. $ 180/ton, while soybean oil U.S. $ 315/ton and rapeseed oil U.S. $ 750/ton. Seeing this condition, ASA led by the USA started campaign negative issues against the CPO in the hope customers will come back to consume soybean oil.
Therefore, to counteract these issues, the Indonesian government is seemed to approach through trade lobbying. Fight against such threats through scientific way such as research to find objective data in supporting the CPO trade and then the results are published on an international scale.
By considering the increase in world vegetable oil demand and the expansion of all the world vegetable oil production, palm oil business should not stop the expansion if they do not want to lose market opportunities and lose momentum of building a national economy.
Therefore, the government should create a good climate to making a breakthrough policy as an effort to overcome the threats facing the business of palm oil.

You might also like:
Indonesia palm oil prospect
The development of palm oil downstream industry
Worlds palm oil producers
Tax change effect on palm oil business
Palm oil industry development strategy

No comments:

Post a Comment