MPOB: Malaysia may miss target of 18.1 million tonnes for this year.
BizOnline. Thursday March 4, 2010
KUALA LUMPUR: Malaysia, the world’s No. 2 palm oil producer, will miss its output target of 18.1 million tonnes because of a shortage of foreign labour even as yields recover, according to a top industry official.
Industry regulator Malaysian Palm Oil Board (MPOB) chairman Sabri Ahmad said yesterday Indonesian plantation workers made better pay at home as more palm oil estates started up there while employers in Malaysia had trouble hiring because of a stricter work-permit process.
Sabri added that while concerns about hot weather caused by the El Nino weather phenomenon weighed on the industry, labour was the main issue now. “The hot weather from El Nino is not the problem now because its effect can be seen 12-18 months later.
“The bigger issue is the labour shortage and if that is resolved, then 18.1 million tonnes is possible,” Sabri Ahmad told Reuters ahead of the Bursa Malaysia Palm Oil Conference next week.
“Historically, Malaysian palm oil output should not be weak for two straight years. Sarawak should contribute to production. We just don’t have enough labour,” he said
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