Malaysia will produce less palm oil – USDA attaché

Malaysia’s palm oil production is forecast to fall to 19.2 million tons in 2024/25, down from 19.6 million tons the previous year, Canadian industry publication FarmTario reports, citing a report by a USDA attaché in Kuala Lumpur.

In the report, posted on the Global Agricultural Information Network (GAIN), the attaché refers to “the lingering effects of El Niño weather patterns” that manifested themselves with a delay of six to seven months after the onset of the phenomenon. Of great importance, in particular, will be the lack of rain during the pollination of palm trees,” he noted. In addition, the report pointed to problems with employment figures as plantations are unable to hire enough workers. The attache also pointed to India’s recent increase in import duty on foreign palm oil by 22 points to 27.5%, and “lack of price competitiveness compared to other edible oils.”

The official USDA estimate for Malaysian palm oil production in 2024/25 is 19.8 million tons, a million more than a year earlier, with harvested area increasing by 50,000 hectares to 5.6 million hectares.

The Kuala Lumpur office forecasts Malaysia’s palm oil exports in 2024/25 at 15.7 million tons, down 500,000 tons from the previous marketing year. However, ending stocks should rise to 2.4 million tons this year, up from 2.25 million tons last year.

Meanwhile, USDA estimated exports in 2024/25 at 16.5 million tons, up 200,000 tons from the previous year. The carryover was calculated at 2.18 million tons.

Earlier, the Malaysian Palm Oil Association noted that 664,000 hectares, or about 12% of palm plantation acreage is due for replanting as palm trees are over 25 years old.

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Tags: Malaysia, palm oil