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Crude Palm Oil Exports Rise 116%

Khmer Times Share:
Raw palm oil prices depend on both industry supply-anddemand dynamics and the global economic environment. Supplied

The export of crude palm oil (CPO) from agro-industrial conglomerate Mong Reththy Group reached 13,000 metric tons in the first six months this year, up a huge 116 percent compared to the same period last year.
 
The Mong Reththy Group, the Kingdom’s sole producer of CPO, has been exporting palm oil products since 2002.
 
Prachak  Kongtannomtham, director of sales and marketing at Mong Reththy Group, said in the first half of the year the group’s CPO exports generated $7.5 million, compared to $3.5 million in the same period last year. In the first half of 2015, Mong Reththy’s CPO exports totaled 6,000 metric tons.
 
Mr. Prachak said the main markets for his group’s CPO exports are Malaysia, South Korea, China, India, Pakistan and Switzerland. He added that 40 percent of CPO exports went to Malaysia, while 30 percent were exported to Switzerland.
 
Mr. Prachak pointed out that though CPO prices were down in 2015, the sector outlook for palm oil producers was slowly improving due to improved prices since late April. But, he said, the worst was not over yet.
 
“We are worried about CPO market prices and the plunge has been big ‒ from $1,000 per metric ton to between $590 and $600 per metric ton recently,” Mr. Prachak pointed out.
 
CPO prices depend on both industry supply-and-demand dynamics and the global economic environment.
 
CPO prices could average higher in the later part of 2106 as global demand holds up and output falls in Malaysia and Indonesia due to El Nino and La Nina-related weather conditions.
 
Despite declining prices, Mr. Prachak said, there still was high demand for Mong Reththy’s CPO supplies.
 
Mong Reththy Investment Cambodia Oil Palm Co. Ltd., in the Mong Reththy Group, is the first commercially cultivated oil palm company in Cambodia. The plantation is located 180 kilometers from Phnom Penh and 60 kilometers from Preah Sihanoukville province. The company imported its oil palm seeds from Costa Rica and Malaysia.
 
Mong Reththy’s $20 million CPO plant, a joint venture with the Thailand-based TCC Group, is the first factory in Cambodia to produce raw palm oil for domestic consumption and export.

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