InfoSAWIT, JAKARTA – Palm oil production in Indonesia, the biggest palm oil producer in the world could be decreasing this year because of dry season and old trees. It would be close for the supply and maintain the high price globally.
Indonesian Palm Oil Association (IPOA) and Indonesian Palm Oil Board (IPOB) predicted, palm oil production this year could be stagnant or even decreasing 5 (five) percent to last year, 2023. Prior, the two industrial organizations predicted the increasing production in the early of this year.
Data from the United States of America (USA) showed palm oil supplies in the world could be in the lowest level for the past three years. Malaysia, as the second biggest palm oil producer in the world, faced supply isse because of the old trees and lack of workers.
In 2023, Indonesia produced 54,84 million tons of crude palm oil while the previous three years, it was decreasing. IPOA predicted this year production could be at about 52 to 53 million tons.
General Secretary of IPOA, M. Hadi Sugeng said that about one third of palm oil producers in Indonesia, including Sumatra and some of Kalimantan got lower rain intensity that it was in July. This could be happening in August.
IPOA also predicted the stagnant production would be decreasing 5% this year. It was contrary with the increasing projection 5% that was mentioned in February 2024. US Foreign Agricultural Service reported that palm oil production in Indonesia since January to June got decreased 2% to the same period last year. The drought made palm oil tree produce less male flower and reduce fresh fruit bunch (FFB) volume.
Besides, the old trees would be a continuous issue for the industries. Many smallholders’ trees in Indonesia are more than 25 years old and should get replanting program to increase FFB production. It got decreased to be about 700 kilograms per hectares in some plantations, from the previous at about 830 kilograms, as Chairman of IPOB, Sahat Sinaga said. IPOB also predicted palm oil production could be decreasing about 3%, to the increasing production as it was mentioned in January 2024. (T2)
