Malaysia palm oil focus: Palm kernel made into chicken feed, POIC inks deals with China companies

11 May 2016: Palm kernel made into chicken feed, POIC inks deals with China companies

Potential game changer - palm kernel made into chicken feed BY P. ARUNA 11 May 2017 -- PKC, being high in fibre and low in protein, is suitable for cattle but cannot be consumed by poultry. Head of downstream operations Haris Arshad (pic) said the dietary requirements for the feed of ruminants, like cattle and poultry, are quite different. “In the case of cattle, they need fibre, and this is where PKC comes in. “The protein level in PKC is quite low, and while this is suitable for ruminants, it cannot be used in poultry feed,” he said.... After two years of research and tests, completely funded by the Malaysian Palm Oil Board (MPOB), Sime Darby Plantations recently launched its new animal feed ingredient, which is in essence – enhanced palm kernel expellers – called ‘Purafex’. “Two years ago, when it was proposed that we develop this system, the first thing we asked was – will there be a demand for it? We found that even domestically, the demand would be huge,” said Haris. Over 50% of chicken feed in the market consists of raw imported components including maize and soybean meal. According to the Plantation Industries and Commodities MInistry, using about 30% of locally-produced components such as the PKC, could lower costs by about 72 sen for each bird, a savings of RM1.3mil a day or RM473mil a year. In 2016, Malaysians consumed 1.8 million chickens daily, or about 657 million chickens a year... Read more at

Sabah palm oil firm inks deals with China companies BY RUBEN SARIO 9 May 2017 -- POIC Sabah Sdn Bhd has signed memoranda of understanding (MoU) with four China-based companies with the aim of taking its downstream processing of palm oil and other related products to the next level. The deals were signed with Tangshan Chunhua Grain & Oil Croup Co Ltd, Xinji Xinyuan Biotech Co Ltd, Top Honesty Biotechnology Co Ltd and Hong Kong-based Utility Sugar Trading Ltd.... There was much interest in Sabah among China’s business community, especially in the property, tourism and manufacturing sectors. In this regard, teaming up with China companies would benefit Sabah in terms of expertise and exposure in technologies, financial strength and marketing.

26 Apr 2016: Malaysia going to Beijing Belt & Road gathering, palm oil strategy discussion points

Who's going / not going to China big Belt & Road gathering? "Among countries not sending their national leaders are the United States, Japan, India, most West European countries, Australia and Singapore. They will all be represented, but at more junior levels. It is no coincidence that these countries are aligned with America and uneasy about China's rise - or perceived to be so."

What has or hasn't been done for Malaysia palm oil marketing? It seems that frustrations are rising for market access concerns.

  • Review palm oil strategy by Tan Siok Choo Posted on 19 April 2017 - 08:52pm,
  • Palm oil strategy – an alternate opinion by Dr Kalyana Sundram Last updated on 25 April 2017 - 08:39pm,

12 August 2016: Malaysia palm oil needs to seek new markets, including challenges in Africa

Malaysian palm oil producers to hunt for new markets 12 August 2016 - KUALA LUMPUR: Malaysian palm oil producers could be forced to find new customers in places like Africa as rival exporter Indonesia increases its dominance of major markets such as China and India due to cheaper prices and a more favourable tax system.  Malaysia has long trailed Indonesia as the world's No. 2 producer and exporter of the edible oil, used in everything from chocolate to soap, mainly because of lower land and labour costs in its larger Southeast Asian neighbour. But the introduction of more competitive levies on palm exports from Indonesia in July last year has further entrenched that country's dominance of export markets, according to analysts and industry officials. "In the long run, we have to work very hard to secure other markets which Indonesia is not competing with us in. Indonesia will go to the big markets like China, Pakistan and Bangladesh," Mohammad Jaaffar Ahmad, the head of the Palm Oil Refiners Association of Malaysia, told Reuters earlier this week. "If you are no longer competitive you have to look for other small market outlets like countries in Africa. Demand is still there but the market is more difficult and risky." Africa is the third largest consumer market for palm oil after Southeast Asia and South Asia. It accounted for about 13% of Malaysian shipments last year, with Benin, Nigeria and Tanzania as key export countries....

21 Dec 2016: Felcra seeks to more plantation areas in Sabah and Sarawak

Felcra Bhd said it will be focusing on restructuring and strengthening its operations — which includes a proposed venture into property development — ....“The plantation segment will be the main area that we will strengthen. We will be purchasing more plantation areas, and we are currently looking for land in Sabah and Sarawak,” he said, on the sidelines of Felcra's 50th anniversary celebrations yesterday.

27 July 2016: Newslinks for MPIC

Editor's note: With Malaysia's Ministry of Plantation Industries and Commodities under new leadership, here are some recent news links. Also, I just saw "Malaysian palm oil" logo, see immediately below from MPOC that refers to Vitamin A deficiency (more in 20 July news link). Specialists reckon that a cool down in expectations for Felda/FGV-Eagle High deal may have affect on leadership at CPOPC - this follows on FGV statement of "no deal" and also uncertainty on Indonesia's mooted policy for moratorium on unplanted concession areas (refer to our 27 July blog posting here, However, it is also possible that other impetus may come to drive CPOPC, 

It's like homecoming for Mah Siew Keong  By FAZLEENA AZIZ - 28 June 2016 -- PUTRAJAYA: Datuk Seri Mah Siew Keong feels like he is “finally home” after assuming the post of Plantation Industries and Commodities Minister. Mah, who is also Gerakan president, said the ministry was a portfolio held by the former and late Gerakan president Tun Dr Lim Keng Yaik from 1986 till 2004. “I am excited to be here, as this portfolio used to be termed as the Gerakan portfolio with the late Lim, who was a minister here for a long period. “A lot of my colleagues in the party said it feels like coming home to this ministry,” he said, after clocking in to his new job today. Mah was accompanied by his new deputy Datuk Datu Nasrun Datu Mansur and the ministry’s secretary-general Datuk M. Nagarajan....As the new minister, he said he would look into value-added creation for Malaysian products such as palm oil; uphold smallholders’ interest and government-to-government initiatives. Nasrun meanwhile, says the portfolio is appropriate for him as his Silam parliamentary area has a million acres of oil palm plantations. He hopes to contribute more towards the development of the oil palm industry in Sabah....

Downstream focus to lift commodity exports [VIDEO]  By A JALIL HAMID AND ZAIDI ISHAM ISMAIL - 20 July 2016 KUALA LUMPUR: The following are excerpts from a Business Times exclusive interview with Plantation Industries and Commodities Minister Datuk Seri Mah Siew Keong

Coping with challenges in commodity industry [VIDEO]  By A JALIL HAMID AND ZAIDI ISHAM ISMAIL - 21 July 2016 -- KUALA LUMPUR: The second part of the New Straits Times exclusive interview with Plantation Industries and Commodities Minister Datuk Seri Mah Siew Keong

Mah all for practical ideas that reduce health problems [VIDEO] 20 July 2016 PLANTATION Industries and Commodities Minister Datuk Seri Mah Siew Keong is all for simple and practical marketing ideas that effectively capture the hearts of consumers. He shared the story of an industrialist who recently met up with him and explained the goodness of red palm oil. “In certain parts of China, many of the poor children suffer from Vitamin A deficiency. When the children are given vitamin capsules, they don’t like them but when we put red palm oil (that contains Vitamin A) into biscuits, the children eat them....