Palm oil production in Indonesia will increase – GAPKI

Analysts of the GAPKI Association expect a 5% increase in palm oil production in Indonesia this year. The industry association also predicts that by the end of 2023, the product’s stocks in the domestic market will amount to about 3.2 million tons. This was reported by GAPKI representative Hadi Sugeng.

According to the association, this year the production of crude palm oil will reach 49 million tons. Indonesia also plans to produce about 4.7 million tons of palm kernel oil.

Sugeng emphasized that production growth is expected despite the impact of the El Niño weather phenomenon, which is expected to delay harvesting on oil palm plantations.

Earlier, industry analyst Thomas Mielke said that in the next six months, palm oil prices on the global market could rise by at least $100 per ton. The growth, he said, is inevitable for two reasons: first, there is an increase in demand from the food industry and the biodiesel sector; second, there is a reduction in the supply of palm oil from key producing regions.

Tags: Indonesia, palm oil