Palm Oil Exports forecast

Taken from the Star at http://thestar.com.my/news/story.asp?file=/2008/11/20/nation/2591347&sec=nation


"SHAH ALAM: Despite a worsening global economic outlook, the Malaysian plantation industry is expected to achieve export earnings of RM100bil compared with last year’s figure of RM89bil.

Plantation Industries and Commodities Minister Datuk Peter Chin Fah Kui said at the opening of the 2nd International Plantation Industry Conference and Exhibition here on Tuesday that the government has an­­nounced measures to stabilise the situation such as the mandatory use of biodiesel and promoting the oil palm replanting programme."

http://www.mpoc.org.my/main_mktstat_export.asp

The trouble is that current CPO prices are even lower than in 2007. And now they are talking about lowering production by encouraging replanting. (replanted fields give zero yields for quite a while)

So, the forecast for 2009 is that our palm oil export revenue will be Rm50b or below.
BTW, that's enough to wipe out next year's forecasted 3% growth in GDP...

Ouch?

Pretty obvious Malaysia is going into recession in 2009...

A bit shameless to try and make it look as if palm oil industry is recovering... in reality what he's saying is that the last 3 months of the year will not overcome the incredible windfalls from earlier in the year.
Palm oil is still going downhill next year...