Malaysia's palm oil output expected to grow 9.2% to 18.6 million tonnes by 2014/2015, report says; poultry production to grow 7.8% to 1.3 million tonnes driven by growing middle class; rice consumption to remain flat as consumers diversify diet
October 25, 2011
– Research and Markets has announced the addition of the "Malaysia Agribusiness Report Q4 2011" report to their offering.
BMI View: Malaysia's agriculture industry is expected to scale up the value-added chain over the next ten years, driven by the Tenth Economic Transformation Program (2010-2020). A total of 16 Entry Point Projects are aimed to revitalise the sector with the ultimate objectives of increasing contribution to the Gross National Income (GNI) from the current MYR20.2bn (US$6.6bn) to MYR49.1bn by 2020. Subsectors which will benefit the most are palm oil, herbal products and aquaculture. Ensuring food security in key areas such as rice and livestock will also take precedence.
Palm Oil Production growth to 2014/15: 9.2% to 18.6mn tonnes. We are optimistic that Malaysia will remain a top producer and exporter of the cheap vegetable oil and expect the country to delve deeper into downstream projects over the coming years. The new B5 bio-diesel program should also boost production aspects over the longer term.
Poultry production to 2014/15: 7.8% to 1.3mn tonnes. This will be due to growing demand from an expanding middle class. Export demand growth will also encourage production over our forecast period.
Rice consumption to 2015: 0% to 2.4mn tonnes. Higher disposable incomes and a growing middle class should see consumers diversifying their diets from rice as a traditional staple to more expensive products such as wheat.
2011 Real GDP Growth Forecast: 4.8% (predicted to average 4.2% from now until 2015).
2011 Consumer Price Inflation Forecast: 2.4% ave (higher than 1.7% in 2010)
Central Bank Policy Rate: 3.0% (higher than 2.75% in 2010) Industry Developments
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