OER Performance by Malaysian Palm Oil Mills-January 2006

 

After experiencing five consecutive months of performing above 20% OER, January 2006 registered a decline of OER 0.57% to 19.48% compared to the previous month. It also recorded 0.39% lower than the same month of last year. The drop in OER was related to excessive average rainfalls received in major producing states of Peninsula Malaysia, Sabah and Sarawak. Another contributing factor was the short harvesting rounds due to the long festive holidays of Hari Raya Haji and Chinese New Year during the month.

 

The decrease in OER recorded were between 0.14% to 0.90% against previous month which prevailed in eight out of twelve producing states. Johor noted the largest decrease of 0.90% to 18.28%, followed by Negeri Sembilan 0.65% to 18.47%, Sabah 0.58% to 20.37% and Pahang 0.57% to 18.60%.

 

In contrast, among the states with increase in OER were led by Kelantan, an increase of 0.27% to 18.58%. This was followed by Terengganu, 0.12% to 18.17% and Pulau Pinang, 0.06% to 18.15%. (Refer Table 1)

 

Table1.                            OER PERFORMANCE BY STATES

DECEMBER 2005 AND JANUARY 2006 (%)

STATE

DECEMBER 2005

JANUARY 2006

DIFF.

Johor

19.18

18.28

-0.90

Kedah

19.19

19.05

-0.14

Kelantan

18.31

18.58

0.27

Melaka

19.36

18.85

-0.51

N. Sembilan

19.12

18.47

-0.65

Pahang

19.17

18.60

-0.57

P.Pinang

18.09

18.15

0.06

Perak

18.96

19.01

0.05

Selangor

19.24

19.00

-0.24

Terengganu

18.05

18.17

0.12

Peninsula Malaysia

19.04

18.60

-0.44

Sabah

20.95

20.37

-0.58

Sarawak

21.07

20.73

-0.34

Sabah/Sarawak

20.97

20.44

-0.53

MALAYSIA

20.05

19.48

-0.57

 

 

On the whole, there were 305 number of mills (77.8%) where OER decrease  compared to 86 number of mills (21.9%) where OER increase. Only one mill (0.3%) recorded unchanged OER over previous month.

 

There were three mills (0.8%) that achieved OER of above 23.00% compared to six mills (1.6%) during the same month last year. Next were 57 mills (14.5%)  registered OER between 21.00% to 22.99%, and 71 mills (18.1%) registered between 20.00% to 20.99%. Another 81 mills (20.7%) registered between 19.00% to 20.00% and 105 mills (26.8%) between 18.00% to 19.00%. The balance of 75 mills (19.1%) recorded OER below 18.00%. (Refer Chart 1)

 

Chart 1.

PALM OIL MILL DISTRIBUTION BY OER PERFORMANCE

JANUARY 2004, 2005 AND 2006

 

The highest OER was 24.73%, registered by a mill in Sabah. In Peninsula Malaysia, the highest and lowest OER was 21.91% and 16.00% registered by a mill in Perak and Johor respectively. While the highest gain and loss in OER were 2.64% and 3.21% recorded by a mill in Trengganu and Pahang respectively.