February 18, 2014

 

New Zealand's 2013 kernel meal import reached 1.52 million tonnes

 

 

One by-product of the oil palm industry is palm kernel meal, which is the pulpy mass left over after oil has been extracted from palm kernel seeds and every year, over seven million tonnes of the stuff is dried and processed, ending up as feed stock for cattle, mostly in New Zealand and Europe.

 

The biggest importer is the EU, which took in about 2.63 million tonnes in 2013, followed by New Zealand with 1.52 million tonnes.

 

The Malaysian Palm Oil Council (MPOC) explains that this substance is packed with minerals, protein, fat and carbohydrates.

 

Due to their ability to digest its high starch, sugar and cellulose content, cattle, which have four chambered stomachs, are particularly suited to the kernel meal. In monogastric animals such as the African catfish or layer chickens, palm kernel meal can be used to make up about 20-30% of the animal's diet.

 

In beef cattle, palm kernel meal can constitute up to 80% of the diet and for dairy cattle, 50%. This makes the dairy industry a big customer of Malaysia's palm kernel meal.

 

One of the largest importers is New Zealand which accounts for about a third of global milk exports. In 2013, the country which is home to more cows than it is to people, shipped in about 1.52 million tonnes of palm kernel meal.

 

Palm kernel meal is an important source of supplementary stock feed to grass and hay for dairy cattle, especially in drought-affected areas. As a country that is hugely reliant on its dairy industry, New Zealand places biosecurity as a top priority.

 

In response to such concerns, risk assessments conducted by its Ministry of Primary Industries have shown that palm kernel expeller (a term used interchangeably with palm kernel meal) is not a natural host for potentially worrying pathogens, such as the foot and mouth disease virus.

 

Besides, import conditions require each consignment to be heat processed to 85°C and stored in factories dedicated to the processing of palm fruits and kernels, and kept clean and free of potential contamination following production.

 

The ministry has also ensured that under the Import Health Standard, palm kernel meal will only be imported from approved and audited facilities. These assurances can only be a good thing for responsible exporters based in Malaysia and Indonesia, which together, accounted for about 90% of world exports in 2013 (Malaysia, 2.58 million tonnes and Indonesia, 3.56 million tonnes).

 

In Malaysia, most palm kernel meal is exported as its dairy and cattle industry is relatively small, with the local consumption at 23,000 tonnes last year. Just recently, a memorandum of understanding was signed, which will secure Pakistan as an importer of palm kernel meal from Malaysia.

 

According to the MPOC, recent market prices have allowed palm kernel meal to offer the best value for money in animal feed ingredients.

 

Based on market price trades in Rotterdam in August 2013, the total digestible nutrient per US dollar is higher than soy, rapeseed, and sunflower meals.

 

On the whole, countries like New Zealand encourage the use of locally grown feed where practicable. However, climatic events may impact availability of local stock feeds, which is where palm kernel meal often ends up being a valued supplement.

 

A few years ago for example, a major drought disrupted normal self-sufficiency in New Zealand and palm kernel meal helped fill the void.