Logo of Phnom Penh Post newspaper Phnom Penh Post - Local palm oil exporter targets EU

Local palm oil exporter targets EU

Local palm oil exporter targets EU

Mong Reththy Group (MRG), Cambodia’s largest exporter of palm oil, hopes to expand its exports to European markets this year.

Mong Reththy, president of the firm, said the quota-free and duty-free trade frameworks provided by European governments factored heavily into the decision.

“About 50 per cent of our total exports, which were worth about $27 million last year, went to European countries. They provided us with quota-free and duty-free access so that we can get $60 per tonne, compared with Malaysia or Thailand, which require us to pay tax. That is a great benefit,” he said.

“They are also encouraging us to export more because we are from a small country, so we receive a lot of support.”

The company began planting palm trees in 1995, when its five-tonne-per-hour-capacity refinery was built. But as growing numbers of palm trees were planted in the area, the company decided to upgrade the refinery’s capacity to 30 tonnes per hour.

MRG expects the production of crude palm oil to increase to 22,000 tonnes this year, up from 18,000 tonnes in 2012.

“We are not afraid of a lack of market. Wherever there are people, there are buyers, because palm oil can make up to 200 kinds of foods,” Reththy said. “We don’t worry about the market, what we are concerned about is the lack of land to grow on.”

He added that the company hopes to export more than $30 million worth of product this year – over 50 per cent of which will go to Europe. Reththy said the bulk of his company’s crude palm oil is exported to Malaysia, where it is processed and sent to Thailand, India and Europe.

MOST VIEWED

  • Diplomatic passports issued to foreigners to be annulled

    The Ministry of Foreign Affairs and International Cooperation will move to annul diplomatic passports issued to those not born in Cambodia. Analysts say the move may be in relation to reports that former Thai prime minister Yingluck Shinawatra used a Cambodian passport to register as

  • Hun Sen warns Irish MP of EBA ‘mistake’

    Prime Minister Hun Sen on Saturday told former Irish premier Enda Kenny, still a member of the EU nation’s parliament, that the 28-nation bloc should not make a “third mistake” regarding Cambodia by using the preferential Everything But Arms (EBA) agreement to “take 16 million

  • The hairy little heroes saving many lives in rural Cambodia

    IN RURAL Siem Reap province, rats dare to tread where no person will, as these hairy little heroes place their lives on the line each day for the good of the local community. The rodents are the most important members of a special team, leading

  • PM warns EU and opposition on 34th anniversary of his rule

    HUN Sen reached the milestone of 34 years as Cambodian prime minister on Monday and used the groundbreaking ceremony for a new ring road around Phnom Penh to tell the international community that putting sanctions on the Kingdom meant killing the opposition. “Please don’t forget