There has been a small increase of 4.65% in the production of palm oil by Malaysia in 2004 where from 13.355 million tonnes in 2003 it reached 13.976 million tonnes in 2004 (Table 1). When compared to the period of 2003 over 2002, the increase was 12.14%, indicating that the palms are beginning the downturn cycle of production after four years of active production.