Asian Agri and the Future of Palm Oil

621 Words3 Pages
Asian Agri and the future of Palm oil Is Tanoto correct that palm oil has a bright future? Tanoto is correct that palm oil - aka the “golden corp” of Southeast Asia - has a bright future. It is very economic to be produced, due to its high yield and low cost of production compared with production of other edible oils. With higher economic growth, the demand for food and fuel is rapidly growing in the Asian countries of India and China. So, it is likely that we see a similar positive effect on the demand for Palm oil. Additionally, in today’s world, there are health concerns regarding the rise in the use of trans-fat. This has led consumers and packaged goods to companies limit its use. The increasing health consciousness has would contribute to increased use of this commodity as palm oil is trans-fat free. Furthermore, with increasing requirement for biodiesel, palm oil could well become an important part of the renewable fuel and play a vital role in the energy business. If yes, how should Asian Agri strengthen its position? If no, what should Yeo’s strategy be? If unclear, what could Yeo do to improve the global use of palm oil? I think due to the increasing role that palm oil has to play in the global economy, Asian Agri should strengthen its position in the industry and promote the global use of palm oil. They could do this through: * Sustainable Production Asian Agri should aggressively stimulate the use of sustainable palm oil. They can do this by keeping to the set of economic, environmental, legal, and social standards set, in the production process of palm oil. Since sustainability will be an important factor for the company to differentiate itself from competitors and to stay strong in the industry, the company should continue to get all its “properties” certified as “sustainable”. They can also train middle managers, supervisors
Open Document