Malaysia Palm Oil Industry Report - 2014

USD $449.00
Malaysia Palm Oil Industry Report - 2014

This report profiles Malaysia’s palm oil industry, discussing market trends through 2013 and outlook for 2014 and beyond. The report also highlights leading players in the sector including Sime Darby Berhad, IOI Corporation Berhad and Kuala Lumpur Kepong Berhad.

Following rapid growth in the past few years, the Malaysian palm oil industry went through unprecedented times in 2012 with lower crude palm oil (CPO) production, as well as lower palm oil prices and exports. In 2013, CPO production and exports recovered whereas imports were low all year round. The average CPO price for the year slipped 14.2% to MYR 2,371 per tonne from MYR 2,764 per tonne in 2012, while export revenue of palm products declined 14.1% to MYR 61.36bn.

CPO production in 2013 improved to 19.22mn tonnes, up 2.3% from 18.79mn tonnes in 2012. The improvement was attributed to higher fresh fruit bunch (FFB) yield and increase in production from new matured areas especially in Sarawak. Palm oil stocks in 2013 declined 24.4% to 1.99mn tonnes, from a record-high 2.63mn tonnes in the previous year. Higher exports as well as significant decline in imports had contributed to the lower closing stock for the year.

Effective January 1, 2013, Malaysia lowered its CPO export tax rates to create a level playing field vis-à-vis its Indonesian peers and provide an export outlet for the huge stockpiles. The government has also shown keen interest in subsiding oil palm replanting scheme and raising domestic demand for palm biodiesel to prevent escalating stockpile. Globally, the weather forecast models are predicting a possible return of a weak-to-moderate El Nino by the end of this year. Nevertheless, CPO production is expected to increase in 2014, attributable to recovery in FFB yield performance as well as increase in new mature area coming into production.

Key Points:

• The oil palm planted area increased 3.0% year-on-year, from 5.08mn hectares in 2012 to 5.23mn hectares in 2013.

• The production of crude palm kernel oil (CPKO) surged 4.9% to 2.27mn tonnes in 2013.

• The average FFB yield increased 0.7% to 19.02 tonnes per hectare in 2013. Sabah accounted for the highest FFB yield, recording an improvement of 2.4% yoy to 20.88 tonnes per hectare.


Table of Contents

1. Industry Profile
1.1 Overview
1.2 Plantation
1.2.1 Area
1.2.2 Yield
1.3 Processing
1.4 Production
1.5 Stocks
1.6 Exports and imports
1.7 Prices
1.8 World oils and fats

2. Market Trends and Outlook
2.1 World’s top two palm oil producers
2.2 Development of palm oil industry
2.2.1 Industrial and food products
2.2.2 Biomass
2.3 Palm biodiesel
2.4 Crude palm oil tax
2.5 Government incentives
2.6 Sustainable palm oil and biodiversity
2.6.1 Biodiversity conservation
2.6.2 Roundtable On Sustainable Palm Oil (RSPO)
2.7 Market outlook

3. Leading Players and Comparative Matrix
3.1 Leading players
3.1.1 Sime Darby Berhad
3.1.2 IOI Corporation Berhad
3.1.3 Kuala Lumpur Kepong Berhad
3.2 Comparative matrix
3.3 SWOT analysis

4. Tables and Charts

Table 1: Summary of the performance of the Malaysian oil palm industry (2013 vs. 2012)
Table 2: Oil palm planted area by states (hectares)
Table 3: Number and capacities of palm oil sectors in 2013 (mn tonnes)
Table 4: Palm oil products processed in 2013 (tonnes)
Table 5: Production of oil palm products (2013 vs. 2012) (tonnes)
Table 6: Closing stock of oil palm products as of December (2013 vs. 2012)(tonnes)
Table 7: Local prices of palm oil products (2013 vs. 2012) (MYR per tonne)
Table 8: Export prices of processed palm oil products (2013 vs. 2012) (MYR per tonne)
Table 9: Taxation on the Malaysian palm oil sector (as of October 2011)
Table 10: Comparison of old and new palm oil export taxes in Malaysia (effective Jan 1, 2013)
Table 11: SIME’s five-year plantation statistics (2009–2013)
Table 12: SIME’s financial summary (2009–Q3/2014)
Table 13: IOI’s five-year plantation statistics (2009–2013)
Table 14: IOI’s financial summary (2009–Q3/2014)
Table 15: KLK’s five-year plantation statistics (2009–2013)
Table 16: KLK’s financial summary (2009–Q3/2014)
Table 17: Selected peer comparison of key financials
Table 18: Selected peer comparison of plantation statistics

Chart 1: Oil palm planted area by category in 2013
Chart 2: Monthly FFB yield (2013 vs. 2012)
Chart 3: Monthly CPO yield (2013 vs. 2012)
Chart 4: Utilisation rate of palm oil sectors (2013 vs. 2012)
Chart 5: Production trend of CPO and CPKO
Chart 6: Export of oil palm products by value
Chart 7: Export of oil palm products by volume
Chart 8: Export of palm oil by destination in 2013
Chart 9: Import of oil palm products by volume (2013 vs. 2012)
Chart 10: Average annual price trend of CPO and CPKO
Chart 11: World exports of major oils and fats in 2013
Chart 12: World production of major oils and fats (2013 vs. 2012)
Chart 13: World major producers of palm oil in 2013
Chart 14: World top two producers of palm oil
Chart 15: CSPO production area
Chart 16: CSPO and CSPK production capacity
Chart 17: CSPO and CSPK supply by country in 2013
Chart 18: SIME’s segmental contribution to revenue and profit in FY2013
Chart 19: IOI's segmental contribution to profit in FY2013
Chart 20: KLK's FFB production and oil palm planted area

Number of pages: 38
Release Date: Fri, 18 Jul 2014