Jakarta, SAWIT INDONESIA - Global palm oil production growth is expected to be flat next year due to a combination of La Niña, old trees, high fertilizer costs, and land seizures in Indonesia, according to an industry group.
* Output seen at ~82 million tons in 2026, around the same level as this year, said Chandran Gunalan, director of strategy and policy at the Council of Palm Oil Producing Countries
* Compares with 79m tons in 2024, he said in an interview on the sidelines of an industry conference in Bali on Thursday
* La Niña’s strength will be a key factor determining production
* Rising number of trees older than 25 years in Malaysia, as well as slow replanting rates in Indonesia, will curb supplies in the top growers
* Indonesian output seen ~50m tons next year, Malaysia’s ~20m tons
* Surging fertilizer costs over past couple of years have led to some farmers reducing its application, which may constrain yields
* There’s been little activity seen at plantations seized by Indonesia, putting estates at risk of becoming idle
* Elsewhere, Latin American output increasing due to expansions
* Colombian output seen at 2m tons this year, up from 1.9m tons
* CPOPC officials have met with representatives from the EU parliament as well as European policymakers to discuss considerations for smallholders to make it easier for them to comply with the EUDR
* NOTE: CPOPC is an inter-governmental organization that represents 88% of global palm production; members include Indonesia, Malaysia, Papua New Guinea and Democratic Republic of Congo.
Sumber: cpopc.net
