Exports of palm oil up, despite price drop
Exports of palm oil up, despite price drop
Exports of crude palm oil from the Mong Reththy Company – the Kingdom’s sole producer of the product – increased 8.1 per cent for the first 11 months this year, compared to the same period in 2014.
Mong Reththa, vice chairman of the board of directors at Mong Reththy Investment Cambodia Palm Oil and son of Mong Reththy, said his company exported 21,384 metric tonnes of crude palm oil so far this year, compared to the 19,780 tonnes exported for the same period last year.
“Exports have increased because our plants have matured, and they will gradually give more yield, despite no increase in land used for cultivation,” he said.
However, Reththa said that in same time period average palm oil price dropped from $722 per tonne in 2014 to $601 per MT this year. Global prices have dropped in the last twelve months, from $660 per tone in November 2014 to $503 as of last month.
“The reason why prices are down is due to low global prices,” he added.
Despite declining prices, Reththa said there was still demand for his company to supply palm oil and that they were looking to expand their operations.
“Our plan is to expand the plantation to 30,000 hectares, but right now we are only cultivating on 16,000 hectares,” Reththa said.
The group also plans to build a cooking oil plant, though Reththa said it was still in the initial stages. The group exports it crude palm oil to countries in Southeast Asia and the European Union.
