PALM OIL IN THAILAND
In general, the current situation in Thailand differs from the one in the nearby countries, such as Indonesia and Philippines.
In Thailand the land turned into palm plantations is already being used mainly for farming of rubber, vegetables, fruits, eucalyptus etc. The best growing areas for oil palms are in Southern – Thailand where there are no significant rainforests to be harmed. This means that all new areas converted to palm oil farming are already mainly farming areas.
The Thai government is also very strict about all the misuse of nature and ECOil Group Company Limited is always acting accordingly to the standards and restrictions set by the forest and farming departments of Thailand.
In 2007 a total of 1 240 000 tons of crude palm oil was produced in Thailand of which 859 363 tons was used in Thailand and 251 130 tons was reserved for other purposes. 150 000 tons were exported.
Demand for crude palm oil has risen by 300 000 tons per annum in Bio Diesel industry and it is believed to double in the next five years.
2008 gross production of crude palm oil is expected to rise up to approximately 1 500 000 tons.
Growing demand in both the foodand fuel market has raised the market value of crude palm oil from 29 baht/ kg in November 2007 to 37.5 baht / kg in January 2008..
During MarchApril 2008 the average market price for the crude palm oil has been approx. 35 baht per kilo.
The Thai government has now also started campaigns to support producers of palm oil to expand their production. This is done by releasing funds for the farmers and refineries as an added extra income on top of the market price of crude palm oil.
Thai government has officially announced that their goal for the next years is to achieve a situation where the whole traffic of Thailand’s capital, Bangkok, would be moving with bio fuels.
To support the interests of producers they are also planning to set a “floor price” for the palm oil that would secure the interests of the farmers to produce oil to the growing needs of the market.
