Malaysian palm oil’s big future in Korea

Malaysian Plantation Industries and Commodities minister opened the inaugural Malaysia-Korea Palm Oil Trade Fair and Seminar last week.

“Korea has demonstrated a wide acceptance for palm oil with 21 percent of the country’s oil and fats industry accounted by palm oil,” said Minister Tan Sri Bernard Dompok.

He also noted that there is room for growth as the Korean biodiesel mandate stipulates a 2 percent blend in 2012.

The event focused on synergizing and strengthening the existing partnership between the business communities of both countries.

On April 12, prominent industry captains and international experts from Malaysia, Britain, the United States and Korea covered topics on oils and fats ranging from market outlook and trade to palm oil applications and nutrition.

“Malaysia takes the position as Korea’s favored palm oil supplier seriously,” said Dompok. “We will continue to foster closer ties and provide new avenues where information can be shared, ideas can be exchanged and business opportunities can be established.”

Dompok plans to further encourage Malaysian companies to look into opportunities in the household cooking oil market.

The Korean oils and fats market has grown steadily at 5.5 percent for the past 10 years with Malaysia being virtually the exclusive supplier of palm oil to the local market.

“We will also provide the latest information and scientific discoveries to benefit Korean consumers and the prolific business community here. This will encourage further usage of palm oil in both the food and non-food sectors.

“In addition, Malaysia will continue to ensure that palm oil supplied to Korea adheres to sound practices of good agriculture and sustainability management,” he said.

By Yoav Cerralbo (yoav@heraldcorp.com)