The Jakarta Post
Amid soaring global demand for palm oil, Indonesia is predicted to remain dominant as the world’s largest palm-oil producer within the next decade, on the back of its main rival Malaysia’s land scarcity and aging plantations, says a report by Rabobank.
According to the report, average palm-oil consumption in the world has grown at a faster rate than global supplies over the last 10 years, reaching demand of 2.5 million tons per year compared to production of 2.4 million tons per year, putting pressure on palm-oil producers to intensify their output.
“Due to demand outweighing supply, constraints are now apparent,” said the report, titled: Palm Oil Outlook: Palm, the Leader of the Pack.
To meet global demand, palm-oil producers need to expand their plantations by 640,000 hectares of land per year. With that figure in mind, Indonesia’s land availability is ex...