Next year is a good year for palm oil industry

Spanish Member of Parliament Emilio Menendez (right) and his head of cabinet, Carlos Canicero Urabayen during their visit to the Federal Land Development Authority's Besout 6 Estate in Sungai, Perak, on Dec 6. - SAM THAM /THE STAR

FOR those in the palm oil sector, 2013 will be best remembered for the successful implementation of Malaysia’s revised crude palm oil (CPO) export duty and the abolition of the duty-free CPO export quota.

However, bearish fundamentals, ie, higher-than-expected production, a steep inventory situation as well as intensified anti-palm oil campaigns from non-governmental organisations and some Western consuming countries saw a dismal performance in the CPO price, averaging RM2,450 per tonne this year from last year’s RM2,764 per tonne.