
Sarawak records 8.6 pct rise in palm oil FFB production this year
KUCHING (May 27): Sarawak has produced 4.85 million tonnes of oil palm's Fresh Fruit Bunches (FFB), marking an 8.6 per cent increase compared to 4.47 million tonnes in the same period last year, said Dato Sri Dr Stephen Rundi Utom.
The Food Industry, Commodity and Regional Development Minister added that Crude Palm Oil (CPO) production also rose by 3.7 per cent to 0.91 million tonnes.
'However, the production of Crude Palm Kernel Oil (CPKO) has recorded a 7.8 per cent decrease, from 86,530 metric tonnes to 79,762 metric tonnes,' he said during his ministerial winding-up speech at the State Legislative Assembly (DUN) sitting yesterday.
Dr Rundi highlighted that Sarawak's average FFB yield increased to 3.32 metric tonnes per hectare in the first quarter of 2025, compared to 3.08 metric tonnes in 2024.
He revealed that the Oil Extraction Rate (OER) from January to March 2025 recorded a declining trend, achieving 18.9 per cent, which is lower compared to 19.7 per cent during the same period in 2024.
'Similarly, the OER for CPKO declined from 45.8 per cent to 44.5 per cent during this period.
'The decline was primarily due to the adverse impact of heavy rain, flooding, and ongoing replanting programme,' he added. Dr Stephen Rundi Utom DUN sitting fresh fruit bunches oil palm
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


The Star
4 days ago
- The Star
Brighter outlook likely for Wilmar International in 2H25
CIMB Research said the planter pointed out that refining margins in Malaysia and Indonesia are expected to remain challenging. PETALING JAYA: CIMB Research expects crude palm oil (CPO) prices to hold steady, supported by Indonesia's biodiesel policy and limited production growth. The research house shared that Wilmar International Ltd has guided for a favourable plantation outlook in the second half of financial year 2025 (2H25), underpinned by firm CPO prices, steady fresh fruit bunches (FFB) growth, and stable crushing margins. However, CIMB Research said during Wilmar's second quarter of financial year 2025 results briefing, the planter pointed out that refining margins in Malaysia and Indonesia are expected to remain challenging. 'Wilmar maintained that the plantation business should remain favourable in 2H25, underpinned by steady CPO prices, FFB output growth (5%), and limited impact from dry weather (no fires reported at its estates),' it added. The research house said refining margins remain challenging, particularly in Malaysia and Indonesia, with profits expected to be modest and dependent on raw material availability, demand trends, and market timing. The research house believed the 19% US import tariff on Malaysian and Indonesian palm oil is expected to have minimal direct impact. This is because the United States accounts for 2% to 3% of Wilmar's palm oil export volumes, and volumes can be diverted to India, Africa, or other markets. It said production growth in Indonesia for 2025 is now expected at about 5% year-on-year, slightly below earlier expectations. CIMB Research believed regulatory risks in Indonesia remain, including a pending Supreme Court decision on the CPO export permit case, an ongoing rice quality investigation, and unresolved forestry land compliance issues. 'The group expects minimal impact from the higher US import tariff on Malaysia and Indonesia and believes Indonesia's B50 biodiesel mandate is achievable,' it added. Furthermore, the research house said Wilmar expects Indonesia's B50 biodiesel mandate to be implementable if the government proceeds with the policy mandate. Meanwhile, consumer sentiment in China has improved in recent months, although recovery is expected to be gradual; downtrading persists in some categories. 'Expansion of the central kitchen business in China continues, albeit at a slower pace to refine the model and improve efficiency,' it noted.


Free Malaysia Today
6 days ago
- Free Malaysia Today
India's soyoil imports set for record high, palm oil at five-year low
Crude palm oil was commanding a premium of as high as US$150 per tonne over crude soyoil earlier this year. (File pic) MUMBAI : India's soyoil imports are poised to surge 60% year-on-year to a record high in 2024/2025, as refiners boost purchases due to cheaper prices compared with rival palm oil, shipments of which are set to hit a five-year low, six dealers told Reuters. Higher soyoil purchases by India, the world's biggest importer of vegetable oils, will support global soyoil prices, which have risen 31% so far this year, but weigh on benchmark Malaysian palm oil futures. In the 2024/2025 marketing year ending in October, soyoil imports are likely to jump to 5.5 million metric tonnes, from 3.44 million tonnes a year ago, according to estimates from dealers. 'Palm oil imports in the year, meanwhile, are likely to fall 13.5% from a year ago to 7.8 million metric tonnes, the lowest since 2019/2020,' dealers said. 'Sunflower oil imports could fall 20% to 2.8 million tonnes, the lowest in three years,' they said. 'Higher soyoil imports will lift India's total edible oil imports in the year by 1% to 16.1 million tonnes,' dealers estimated. 'Palm oil traded at a premium for many months this year, which prompted buyers to replace it with soyoil,' said B.V. Mehta, executive director of the Solvent Extractors' Association of India. 'Soyoil was cheap and plenty in stock, so it ended up grabbing palm oil's market share,' he said. Crude palm oil was commanding a premium of as high as US$150 per tonne over crude soyoil earlier this year due to tight supplies of the tropical oil in producer countries Malaysia and Indonesia. Indian consumers are price-sensitive and had relied on palm oil because it was cheap. 'However, its price rally prompted even large industrial buyers to look for alternatives,' said Aashish Acharya, vice-president at Patanjali Foods Ltd, a leading importer of edible oils. 'While soyoil was initially being bought as a substitute for palm oil, it is now also replacing rapeseed oil, which has become more expensive due to a price rally in the past two months,' said a Mumbai-based dealer with a global trade house. India buys palm oil mainly from Indonesia and Malaysia, while it typically imports soyoil and sunflower oil from Argentina, Brazil, Russia and Ukraine. 'This year, however, India is likely to buy more than 600,000 tonnes of soyoil from Nepal,' a New Delhi-based dealer said. 'Soyoil shipments from Nepal are tax-free under the South Asian Free Trade Agreement, which is encouraging buyers from eastern India to source soyoil from the Himalayan country,' he added.


Borneo Post
7 days ago
- Borneo Post
Premier: Sarawak mulls blended finance facility to fund energy transition
Abang Johari (centre) prepares to perform the opening gimmick during the launching ceremony of SET-P. Accompanying him on stage are (from left) Asfia, Mohamad Abu Bakar, Dr Hazland and Nanta. — Photo by Mohd Faisal Ahmad KUCHING (Aug 12): Sarawak is considering establishing a blended finance facility to support catalytic infrastructure and transition-aligned investments by leveraging risk mitigation instruments and deploying public capital as a crowd-in mechanism, said Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg. He said this would enhance the bankability of these projects and unlock broader participation from the private sector and development banks. 'Let me be clear — realising this vision will require deep collaboration. We call upon development partners, private investors and financial institutions to join us in shaping a resilient, inclusive and investable energy transition for Sarawak,' he said. He said this during the Ministry of Energy and Environmental Sustainability's Public Industry Engagement Day and the launching ceremony of the Sarawak Energy Transition Policy (SET-P) at the Borneo Convention Centre Kuching here yesterday. Abang Johari said that to fully unlock SET-P's potential, Sarawak needed to first strengthen its short-term investment landscape. 'Energy transition opportunities in Sarawak can be broadly categorised into three categories.. 'Firstly, commercially-viable projects with market-rate returns include utility-scale solar, hydropower, grid modernisation and much of our natural gas infrastructure. These investments are generally bankable and capable of attracting private capital without significant intervention,' he said. He said the second category were public-good initiatives with no direct financial returns, which includes critical enablers such as workforce upskilling, public awareness programmes and sustainable urban transport systems. 'While they do not yield commercial returns, they are foundational to ensuring a just and inclusive energy transition,' he added. Abang Johari said the third category was emerging solutions with below-market returns, which encompass 'nascent but strategically vital technologies' such as clean hydrogen, carbon capture, utilisation and storage (CCUS), energy efficiency and low-carbon transport. 'Despite their long-term potential, these initiatives currently struggle to attract private financing due to higher risk profiles and uncertain returns, particularly in emerging markets such as Sarawak,' said Abang Johari. He said today's event was a critical step in fostering the collective ownership and shared responsibility needed for effective implementation. 'By working together, we can develop the enabling infrastructure, drive innovation through research and development and cultivate a highly skilled green workforce prepared to lead Sarawak into a resilient, low-carbon energy future,' he said. Also present were State Legislative Assembly Speaker Tan Sri Datuk Amar Mohamad Asfia Awang Nassar; Sarawak State Secretary Datuk Amar Mohamad Abu Bakar Marzuki; Works Minister Dato Sri Alexander Nanta Linggi; and Deputy Minister of Energy and Environmental Sustainability Datuk Dr Hazland Abang Hipni. Abang Johari Tun Openg blended energy transition finance