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RI palm oil production declines in January as climate factors bite
Crude palm oil (CPO) production in Indonesia, the world’s biggest palm oil producer, increased by just 0.75 percent year-on-year (yoy) to 3.8 million tonnes, the latest data from the Indonesia Oil Palm Producers Association (Gapki) show.
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Worker loads oil palm fresh fruit bunches to be transported from the collector site to crude palm oil (CPO) factories in Pekanbaru, Riau, on April 27, 2022. (Reuters/Willy Kurniawan)
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ndonesia, the world’s biggest palm oil producer, saw its production drop by 9.5 percent to 3.8 million tonnes in January compared with the previous month.
The decline has resulted in a shrinking stock of crude palm oil (CPO) as well as palm kernel oil – the latter a vegetable oil derived from the fruit’s stone. In January, the amount in stock was only 3.1 million tonnes, marking an 11 percent drop compared with the preceding month.
Despite the monthly drop, CPO production still inched by 0.75 percent year-on-year in January.
“The lower monthly production was caused by climate factors,” Indonesia Oil Palm Producers Association (Gapki) executive director Mukti Sardjono said in a statement on Monday.
Read also: Limited supply to prop up 2023 CPO prices, but global uncertainty clouds outlook
The global palm oil outlook is expected to weaken in the first half of this year owing to several factors including climate, such as the El Nino weather phenomenon, Dorab Mistry, director of Godrej International, said in Kuala Lumpur on March 8, as reported by Nikkei Asia.
In addition, producers were facing challenges stemming from disruptions in the global fertilizer supply chain, which has contributed to the slowing of production in the palm oil industry, Gapki said in November.
