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Last Updated: 22 July 2024

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KUALA LUMPUR: Sik Cheong Bhd, a cooking oil distributor en route to ACE Market listing, plans to expand its product range to include high oleic soybean oil.

The company, which mainly repackages refined, bleached and deodorised (RBD) palm olein, has been getting enquiries from existing customers interested in the product, said Abdul Muiz Mustafa, senior manager at TA Securities advising and managing Sik Cheong’s initial public offering (IPO).

Palm kernel oil is more suited for confectionery and pastries, while Sik Cheong’s customers are seeking cooking oil that is “more compatible with general use”, he said at a press conference in conjunction with the launch of its IPO prospectus.

“This will allow them to cross-sell the product to retailers and wholesalers, and meet the demand from food manufacturers for a healthier cooking option," he said. Further, soybean oil does not require a different set of handling procedures than palm oil, Abdul Muiz added.

Sik Cheong’s IPO — priced at 27 sen apiece — involves the public issuance of 66 million new shares, which would raise RM17.82 million for the company, and an offer for sale of 20 million existing shares.

The company has set aside 40% of the proceeds to build a new packaging facility to accommodate future expansion of repackaged RBD palm olein oil business and the new venture into high oleic soybean oil, which will require additional space.

Upon completion, the company’s total operational space will increase by 88.1% to about 38,525 sq ft. The company will also buy new machinery and equipment for the repackaging of high oleic soybean oil and RBD palm olein oil products.

Currently, utilisation rate ranges from 20% to 70% depending on the packaging sizes of the products, said Abdul Muiz. “However, the primary constraint is the floor space, which is operating at nearly 95% capacity,” he said.

Sik Cheong’s production lines can handle up to 49,303 metric tonnes per year of RBD palm olein and the company is planning an annual capacity of 9,470 metric tonnes for high oleic soybean oil.

https://theedgemalaysia.com/node/719654

Sumber : The Edge Malaysia

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Last Updated: 22 July 2024

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NEW DELHI: A better replanting rate of older oil palm areas can increase Malaysia's annual palm oil output by 2.5 million tonnes, Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said.

He has raised concern about the low rate of replanting by independent smallholders, who number about 450,000 and have 1.5 million hectares under cultivation.

"Our replanting has dropped significantly. Based on industry standards, we should replant 4-5 per cent, but our national average is only about 1.8 per cent," he told reporters here.

Increasing the replanting rate to industry standards will add more than 2.5 million tonnes to the total palm oil production, he said.

As Malaysia follows sustainable palm oil standards, it will not open up new areas for plantations and will instead focus on higher yield on the current harvested area of 5.7 million hectares, said Johari.

Malaysia's forest cover, which is 54 per cent at present, cannot drop below 50 per cent as part of the country's climate commitments.

Johari said Malaysia was working on a number of initiatives such as greater focus on research and development, more replanting and consolidation of smallholdings to grow output.

Malaysia produced 18.6 million tonnes of palm oil in 2023 compared with about 20 million tonnes a decade ago.

Meanwhile, Malaysia and India discussed ways to increase cooperation in the palm oil sector.

Johari and Indian Agriculture Minister Shivraj Singh Chouhan met on Thursday to explore opportunities in the agriculture field, including collaboration on the Indian initiative known as "the National Mission on Edible Oils – Oil Palm".

Under the scheme launched in 2021, India aims to expand its oil palm cultivation area manifold as part of its efforts to reduce dependence on imported edible oil.

"In this endeavour, Malaysia can provide expertise in improving crop yields, converting underutilised land into productive oil palm plantations, and nurturing the growth of oil palm cultivation," Johari earlier told an industry conference.

https://www.nst.com.my/news/nation/2024/07/1078822/johari-better-replanting-rate-can-raise-malaysian-annual-palm-oil-output

Sumber : New Straits Times

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Last Updated: 22 July 2024

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Petaling Jaya : Malaysia has secured the backing of India, the world’s largest palm oil importer, in combating the anti-palm oil campaign propagated by Western nations.

At a roundtable in New Delhi yesterday attended by plantation and commodities minister Johari Ghani, the Indian Vegetable Oil Producers Association (IVPA) voiced unequivocal support for Malaysia’s stand.

Johari was on a two-day trip to the Indian capital city from July 17 to 18.

IVPA president Sudhakar Desai said the ongoing anti-palm oil campaign poses a threat to the commodity, an essential good for the 1.4 billion consumers in India.

He called for targeted campaigns in response, aimed at shining light on the sustainability and economic benefits of palm oil, to combat concerns of climate change and deforestation.

Another approach, Sudhakar said, would be to work with think tanks and research institutions to highlight unbiased studies about the commodity.

The findings of these studies should then be used as part of marketing and advocacy campaigns to build the trust of consumers in palm oil, the head of the association in India said.

Speaking at the roundtable’s dialogue session, Johari said palm oil was the most efficient edible oil in terms of productivity and land use.

He said oil palm trees occupy less than 8% of the total area of land dedicated to crops, yet produce 32% of major seed oil.

Due to its low cost, high-yielding nature and consistent availability, palm oil boasts the highest yield among vegetable oils, producing 3.3 tonnes per hectare of oil compared to soybean (0.5), sunflower (0.8), and rapeseed (0.8),  he said, according to a press release.

Johari said India would continue to be a key trade partner for Malaysia, which remains committed to supplying the South Asian country with high quality and sustainably produced palm oil.

The European Union Deforestation-free Regulation (EUDR) introduced in November 2021 is aimed at limiting deforestation caused by the consumption of agricultural commodities and products around the world.

The EUDR lists palm oil as one of the commodities that drive deforestation and forest degradation through the expansion of agricultural land.

In April, Johari urged the EU to end its arbitrary and unjustifiable discrimination against palm oil

, and to act fairly in enforcing its strict environmental and sustainability laws and targets.

Yesterday, the minister said Malaysia’s palm oil exports to India would continue to rise in line with the growth of India’s middle-class consumer base.

Malaysia’s exports of palm oil and palm oil products to India last year totalled 3.3 million tonnes, valued at US$3 billion (RM14 billion), or 13% of Malaysia’s total palm oil exports.

https://www.freemalaysiatoday.com/category/nation/2024/07/19/malaysia-gets-indias-backing-in-fight-against-anti-palm-oil-campaign/

Sumber : Free Malaysia Today

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Last Updated: 18 July 2024

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KUALA LUMPUR: Malaysia and the world's largest importer of palm oil, India, will work together to counter the anti-palm oil campaign by the West.

Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said India which imported 3.3 million metric tonne of palm oil worth RM13.3 billion from Malaysia in 2023, is championing Malaysia's palm oil products growth and export potential.

"India wants us to emphasise on sustainable palm oil production that can be exported to many more countries," he said.

India's push should be motivation enough for local industry players to ramp up sustainable palm oil production.

Johari is in New Delhi leading the Malaysian Agricommodity Economic Mission to India from July 17 to 18, to strengthen bilateral trade relationship and explore new cooperation opportunities.

"Industry players should start thinking about sustainable palm oil production and we hope they will continue to focus on increasing productivity," he said.

Today, Johari met with representatives from Adani Wilmar Ltd, a joint venture that has been in operation for over 25 years in India, an importer of palm oil products from Malaysia.

Tomorrow, he is scheduled to pay a courtesy call to the Indian Minister of Agriculture and Farmers' Welfare to discuss issues and proposals related to trade cooperation in the agricommodity sector of both countries.

Johari will also hold an engagement session with Indian vegetable oil industry players and will deliver a keynote address at the Indian Vegetable Oil Producers Association (IVPA) Global Roundtable 3.0 Conference at IVPA's recommendation.

The round table conference will be attended by leaders of the Indian vegetable oil industry.

India is a main export market for Malaysia's palm oil followed by China.

https://www.nst.com.my/amp/business/economy/2024/07/1077901/malaysia-and%C2%A0india%C2%A0-work-together-counter-anti-palm-oil-campaigns

Sumber : New Straits Times