Palm oil producers' hunt for new markets bears little fruit

Kuala Lumpur

A PUSH by palm oil producers to cultivate new markets in South-east Asia and the Middle East is unlikely to move the dial on exports this year, traders and analysts say, as customers favour cheaper rival oils while holding out for palm price cuts.

The impetus for Indonesia and Malaysia, the number 1 and 2 palm oil suppliers respectively, to seek out new buyers comes from the European Union's move to curb palm oil use in biofuels as part of broader climate change goals. The EU is the second largest buyer of the top two producers' palm oil.