Malaysia, the world's second-largest palm oil producer, said today it expects its palm oil export earnings to fall 25 percent this year due to falling prices.

palm oil palm kelapa sawit 201107 Official data showed export earnings from oil palm products stood at RM65.2 billion last year, up from RM45.17 billion in 2007. Malaysian palm oil is exported to more than 150 countries worldwide.

Crude palm oil prices (CPO) plummeted from a peak of RM4,312 ringgit per tonne a year ago to a low of RM1,390 ringgit in October last year. Prices have recovered somewhat at RM2,170 per tonne currently.

"Our output has not dropped, but in terms of value and export earnings it has dropped and we will not get as much as last year," Bernard Dompok, the plantation industries and commodities minister told reporters.

He said that the earnings drop would be "about 25 percent".

Malaysia is the world's second-largest exporter of palm oil after Indonesia, and the two countries account for 85 percent of global production.