Palm Oil Producers Hope Vaccination Will Revive Market

JAKARTA – The Indonesian Palm Oil Association (Gapki) said they could not yet predict the export growth this year. The export performance this year will depend on the success of Covid-19 vaccination program.

Gapki Chairman Joko Supriyono said that all palm oil producers hope the vaccination program will be able to revive the market so that the demand for palm oil will recover. “Demand this year will depend on the vaccination program that is now being implemented. If it meets expectation, then demand will recover, and market will grow despite lower still than previous years,” he said during a virtual press conference last week.

Based on data from Gapki, the exports of palm oil products in 2020 reached 34 million tons, or a decrease if compared to the exports during 2019 at 37.39 million tons. The biggest decrease was seen to China at minus 1.96 million tons, Europe at minus 712.7 thousand tons, then Bangladesh minus 323.9 thousand tons, Middle East minus 280.7 thousand tons, and Africa minus 249.2 thousand tons.

But exports to Pakistan increased by 275.7 thousand tons and to India by 111.7 thousand tons.

“Despite decrease of export volume, the export value increased from USD20.22 billion in 2019 to USD22.97 billion in 2020,” said Joko. (*)