On September 24, a well-known industry organization said on Friday that Indonesia’s crude palm oil production in 2021 is expected to be roughly stable for the second consecutive year, because the domestic production is negatively affected by the El Ni ñ o phenomenon in 2019. The country is the world’s largest producer of palm oil.
Togar sitanggang, vice president of Indonesia Palm Oil Association (gapki), said that with the continuous increase of domestic consumption, the slowdown of production growth will lead to the reduction of the country’s exports
Major weather conditions, El Nino or La Nina, will affect oil palm trees after 12-14 months. At this time of the year, we are experiencing the impact of the small El Ni ñ o phenomenon in 2019, “sitanggang said. “Due to the lack of new planting area, the output growth will not be as strong as in previous years.” he said that Indonesia’s crude palm oil production will increase by 0.9% to 47.46 million tons in 2021, while the crude palm oil export will fall by 61% to 2.78 million tons.
Indonesia’s total palm oil exports in 2021 are expected to decrease by 2% over the previous year to 33.3 million tons. However, sitanggang said refined palm oil exports would increase by 19% to 25 million tons. Due to the rising demand of the food industry, Indonesia’s domestic palm oil demand is expected to increase by 7.5% to 18.6 million tons.
In neighbouring Malaysia, the world’s second-largest palm oil producer, production is affected by labor shortages.
Source: China Agricultural Information Network
Post time: Sep-29-2021