MPOB sees crude palm oil price improving in 2017

05.01.2017

The crude palm oil (CPO) price is expected to strengthen further this year based on the price increase of up to 45 per cent last year, as well as government initiatives to venture into various markets especially in China.

Malaysian Palm Oil Board (MPOB) chairman Datuk Seri Ahmad Hamzah said the government's commitment to broaden existing markets and explore new markets had also supported the commodity price last year.

"Currently, the commodity price has strengthened at a favourable level. As of end-2016, the price at which the oil palm smallholders sold to the middlemen had increased to up to RM650 per tonne.

"The same goes for rubber. We are confident the prices of the two commodities will continue to strengthen further this year," he told reporters after Jasin Parliament's School Assistance Presentation to 200 school children here, last night.

Ahmad who is also Jasin Member of Parliament said besides venturing into new markets, the government's efforts to assist oil palm smallholders would also help to strengthen the commodity's price.

"I hope the smallholders will benefit from the increase in income due to the higher price...they should be thrifty and save in case the CPO price suddenly drops. We don't want (price) to fall but if it happens, the smallholders are already prepared," he said.

Meanwhile, Ahmad said the country's fresh fruit bunch production fell about 20-30 per cent last year due to unfavourable weather, as well as the impact of the El Nino phenomenon.

"However, we are confident it (unfavaourable weather) will not prolong and be as bad as last year, hence, will help in the development of the two commodities," he said.


bernama

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