Malaysian minister advises Chinese palm oil buyers to negotiate directly with exporters for discounts amid competition from cheaper soybean oil.
PETALING JAYA: The Plantation and Commodities Ministry has advised Chinese palm oil buyers to negotiate directly with Malaysian exporters for better pricing.
Minister Datuk Seri Johari Abdul Ghani made the recommendation following declining Malaysian palm oil exports to China due to competitive soybean oil prices.
“The price difference between soybean oil and palm oil is around US$120 per tonne, so naturally China views soybean oil as an alternative for their domestic use,” he told reporters after a dialogue session with Chinese palm oil buyers.
Johari suggested Chinese buyers could secure discounts by committing to one-year purchase agreements with Malaysian industry players.
He also encouraged Chinese companies to establish partnerships with Malaysian investors through joint ventures.
“China has extensive technological capabilities across the upstream, midstream and downstream segments, as well as strong research and development that is driving new applications and recognising the benefits of palm oil,” he said.
The minister noted such collaborations would create truly Malaysian companies with shared ownership between local and Chinese investors.
“From there, the global market becomes accessible to Malaysia,” Johari added.
The Malaysian Palm Oil Council hosted a trade networking visit for 37 prominent Chinese palm oil buyers from November 25-27.
The visit included site inspections of plantation and refinery facilities to showcase Malaysia’s sustainable production ecosystem. – Bernama
