CPO Production Could be Increasing and Impacts to the Price

Doc. InfoSAWIT
CPO Production Could be Increasing and Impacts to the Price

InfoSAWIT, JAKARTA – Cooking palm oil (CPO) which is more than US$ 1.000 per ton in average in this year could be decreasing next year. This happens for the better condition globally after pandemic that fresh fruit bunch (FFB) production in Indonesia and Malaysia gets more stable.

It was told at the virtual 17th Indonesian Palm Oil Conference and 2022 Price Outlook (IPOC 2021) with the theme ‘Role of Palm Oil Industry toward Sustained Economy Recovery’ that Indonesian Palm Oil Association (IPOA) conducted and was joined by InfoSAWIT, Thursday (2/12/2021).

Director of Godrej International Ltd., and vegetable oil observer, Dorab Mistry said that palm oil plantations in Malaysia will normally operate next year.

The lack of worker issues caused by Covid-19 pandemic will have solution in the early of 2022. For the condition, crude palm oil (CPO) production in the country may be increasing from 18 million tons in 2021 to be 19 million tons in 2022.

“But the effects from labor issues to new production will be known in the second quarter 2022,” he said.

He also predicted, CPO production in Indonesia will be increasing 1 million tons in 2022.

From demand sides, there were increasing demands to energy reaching 2 million tons in 2020/2021. “Palm oil demands to energy will be increasing 2 million tons in 2021/2022,” Dorab said.

He thought, the main factor of energy development is about biodiesel but vegetable oil demands for food also increase three million tons in every year.

In pandemic, the demands decreased 2 million tons but the demands increases 2 million tons at this moment. (T2)