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RI expects slight increase in CPO production in 2014
Indonesiaâs crude palm oil (CPO) production is expected to reach 29
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Indonesia's crude palm oil (CPO) production is expected to reach 29.5 million tons in 2014, up slightly from the previous year.
'This year, national palm oil production is estimated to reach only 26.2 million tons, lower from the initial target of between 28 million and 28.5 million tons,' said chairman of the Indonesian Palm Oil Board (DMSI) Derom Bangun on Thursday, as quoted by Antara news agency.
He said this year's farming activities had been hampered by problems, such as weather-disrupted harvests.
More restricted regulations and limited areas for expansion of oil palm plantations in the country would aggravate the problems next year, he went on.
'With only 2.1 million tons of CPO left in 2013, Indonesia will have only 31.6 million tons of CPO stock in 2014,' said Derom.
He further said that only around 18 million of total 29.5 million tons of CPO production next year would be for export markets. The remainder would be used for domestic consumption, starting from food, industry, biofuel and the national reserves.
'There is a trend in declining imports in 2014 compared to this year, which is expected to reach 19 million tons,' said Derom.
The export volume, he said, could even decline further if the government regulation (PP) on biofuel, in which the use of biodiesel was targeted to increase to 10 percent in 2014, could be fully implemented after it took effect on Sept.1, 2013.
There is a growing demand for palm oil in the international market in which Indonesia is its main supplier. In 2014, the global demand for palm oil will reach 58.3 million tons.
'With an insignificant increase in palm oil production, the CPO export price is predicted to strengthen in 2014,' said Derom. The CPO export price is estimated to stand at US$900 per metric ton at the end of this year, up from around $800. (ebf)
