Palm oil distribution centres in Africa

Malaysia has announced plans to set up palm oil distribution centres in Africa and Eastern Europe to boost crude palm oil (CPO) exports into new markets.
Victor Ngo, regional head of the Malaysian Palm Oil Promotion Council, said the centralised hubs would cut shipping costs by effectively distributing palm oil to end-consumers.
As CPO Malaysia has announced plans to set up palm oil distribution centres in Africa and Eastern Europe to boost crude palm oil (CPO) exports into new markets.
Victor Ngo, regional head of the Malaysian Palm Oil Promotion Council, said the centralised hubs would cut shipping costs by effectively distributing palm oil to end-consumers.
As CPO buyers from Eastern Europe and Africa were small-scale buyers, shipping freight costs would be fully exploited with the setting up of the distribution centres, which could reach consumers more effectively, he said. “It’s more economical to send one big shipment from Malaysia to a single point before distributing it to smaller buyers in the region,” Ngo has said.
He said port cities such as Durban in SA, Mombasa in Kenya, Dar-es-Salaam in Tanzania and Odessa in the Ukraine were some of the potential locations to be developed.
“We are in the process of identifying suitable locations for such centres.”
He said that CPO exports to Africa and Eastern European countries last year amounted to some 500,000t and 300,000t respectively, adding that Malaysia, the world’s largest palm oil producer, had the potential to triple its exports to those countries within the next few years.
Malaysia’s success with palm oil is a humiliation for West Africa, from which palm oil trees were imported.
Malaysian Palm Oil Promotion Council in SA: Tel +27-31-329040; fax +27-31-3329042.