China’s decision to allow red palm oil imports is expected to increase CPO imports by approximately 400,000 to –800,000 metric tonnes from its 2019 figures. Red palm oil producers that stand to benefit from this decision include Sime Darby Plantation Bhd, Sarawak Oil Palms Bhd, United Plantations Bhd, Carotino Sdn Bhd and Harvist by Profes Lipid Sdn Bhd. Tapping into this new market is win-win for producers and increasingly health-conscious consumers alike with red palm oil’s abundance of vitamin E and carotene.
Digitalisation to meet rising demand
Although an exciting new opportunity, aligning the industry’s capacity to meet this demand creates new challenges for estates, mills and refineries. Digitalisation using cloud computing and interconnectivity can potentially increase yields by 7-9%, encompassing the global agriculture industry. In the palm oil industry, a system like Quarto by LintraMax digitises estate and mill management to bring up the entire value chain.
A strategic push from BNM
Bank Negara Malaysia had stressed the palm industry’s need to improve downstream value. By manufacturing products with higher product complexity up the value chain, the industry can attract quality investments and international clients including China, Malaysia’s second largest market for palm oil.
Why palm oil players need innovation to meet growing demands
As supply chains become more complex, agribusinesses can rely on powerful management systems like Quarto to obtain insights on opportunity costs and projections of returns for strategic decision-making. Detailed analytics empower decision makers with near real-time data, providing a clear understanding of production capacities to optimise CPO supply potential, and identify implementable processes that can strengthen the entire value chain.
Contact us and let our expertise in digital agriculture help align your business goals to market opportunities.