Economic Report 2013/2014: Agricultural segment to grow 2.7% this year

by **Cals** Sat 26 Oct 2013, 21:08

Published: Saturday October 26, 2013 MYT 12:00:00 AM
Updated: Saturday October 26, 2013 MYT 9:29:58 AM
Economic Report 2013/2014: Agricultural segment to grow 2.7% this year

THE agricultural sector is expected to expand 2.7% in 2013. In the first half, the sector recorded a stronger growth of 3.1% driven by a significant increase in crude palm oil (CPO) production.
Growth was also supported by higher output of food produce such as vegetables, paddy and fruits, reflecting the positive impact of measures taken by the Government to increase food production.
The sector is expected to grow further, supported by increasing yields following the adoption of good agricultural practices, promotion of self-sufficiency in food production, favourable weather conditions and strong domestic demand.
The oil palm subsector rebounded 7.7% in the first six months of 2013.
Output of CPO continued to expand 4.1% to 13.7 million tonnes in the first nine months of 2013. This was attributed to higher yield of fresh fruit bunches to 13.6 tonnes per hectare. For 2013, output of CPO is expected to expand 3.3% to 19.4 million tonnes.
The Malaysian palm oil industry continues to make significant progress in moving up the value chain with focus on downstream activities, creating new sources of export earnings and promoting the growth and use of sustainable oil palm products through the development of the Palm Oil Industrial Clusters.
The average CPO price declined to RM2,332 per tonne in the first nine months of 2013. This was due to rising inventories during the early part of 2013 following sluggish external demand and increasing world supply of major oil seeds such as soybean, rapeseed and sunflower seed.
Production of food commodities comprising livestock, other agriculture and fishing remains the main driver of the agricultural sector.