China to become FGV’s largest palm oil products importer

KUALA LUMPUR: China is expected to surpass Pakistan to become Felda Global Ventures Holdings Bhd’s (FGV) largest palm oil products importer in the next three to four-months, following the deal inked between the company and China’s Sinograin Oils Corporation on Sunday.

FGV Group president/chief executive officer Datuk Zakaria Arshad said currently, China was FGV’s third biggest market for palm oil products after India.

Last year, FDG exported 308,040 tonnes of palm oil products to China while India is the company’s second destination for palm oil products.

“We expect the volume to double up to 600,000 tonnes per year following the signing of the deal,” he told reporters after attending the annual general meeting of FGV’s 51-per cent-owned unit, MSM Malaysia Holdings Bhd.

FGV signed a memorandum of understanding (MoU) with Sinograin on May 14, 2017 to explore the feasibility of supplying and distributing palm oil products to penetrate China’s midstream and downstream market.

Zakaria said the deal with Sinograin was expected to start contributing to the company’s revenue within a couple of months.

He added that currently, FGV produced 2.1 million tonnes of olein per year and 3.2 million tonnes of crude palm oil, annually.

Sinograin is a unit of China Grain Reserves Corporation, a national organisation specialising in the operation and management of China’s national grains and oil reserves, with integrated functions to purchase, store, transport, process and trade.

It produces edible oils from soybean, palm oil and other oils, as well as, distributes and sells its own brand of consumer edible oils direct to the domestic market.

It also imports 700,000 tonnes of palm oil products, annually. — Bernama