Press Release
Indonesian Palm Oil Association (IPOA)
PRODUCTION SLUGGISH, PRICE STAYS HIGH
The average price of CPO CIF Rotterdam in February 2022 reached US$1,522/ton, which was US$164 higher than that of January 2022 at US$1,358/ton, and US$469 higher than that of February 2021 at US$1,053/ton. The price based on KPBN FOB in February 2022 reached Rp15,532/kg, as compared to Rp14,811 in January 2022.
The high price was caused by the unexpected low production of global vegetable oils, especially the soybean in South America. Indonesia’s CPO production in February 2022 was estimated at 3,505 thousand tons and PKO at 302 thousand tons which was lower than the production in January at 3,863 thousand tons of CPO and 365 thousand tons of PKO due to seasonal factors. The steep price has impacted consumption and export.
Domestic consumption for foods in February 2022 reached 489 thousand tons, which was 17.3% lower than that of January at 591 thousand tons. Consumption for oleochemical in Februari amounted to 178 thousand tons and for biodiesel 710 thousand tons, as compared to the consumption in January, which respectively dropped by 2.7% and 3%.
The total export of palm oil in February 2022 reached 2,098 thousand tons, which was lower than that of January 2022 at 2,179 thousand tons (-3,7%). Despite high price, the value of palm oil export in February reached US$2,799 million, which was lower by 0.6% than that of January at US$2,816 million.
The big drop of export was seen to destination of Africa at 153.3 thousand tons, as compared to 278.1 thousand tons in January and 134.7 thousand tons in February (-54%). The export drop was also seen to Philippines by -55% from 63.8 thousand tons in January and 28.7 thousand tons in February. The export to Russia dropped by 7.8% from 69.6 thousand tons in January to 64.2 thousand tons in February.
The export to Ukraine fluctuated with monthly average in 2021 at 25 thousand tons. In January 2022, the export to Ukraine dropped to only 256 tons, while in February reaching 15.28 thousand tons. The export to Netherland, China, India, Bangladesh and Malaysia rose significantly. The export to Netherland in Februay reached 184.41 thousand tons, which rose from 128.27 thousand in January (+42.21%), while to China amounting to 240.3 thousand tons from 197.4 thousand tons (+21,7%) in January, to India it rose to 290.2 thousand tons from 249.9 thousand tons (+16,12%), to Bangladesh it reached 126.0 thousand tons from 87.6 thousand tons (+43,9%) and to Malaysia it reached 229.5 thousand tons from 180.4 thousand tons (+27,2%). The BMKG predicted that weather during 2022 will be normal, but geopolitical condition has triggered uncertainties, so that efforts of improving efficiency and productivity should be maintained.
Jakarta, 19 April 2022
Indonesian Palm Oil Association (IPOA)
For further information, please contact:
Mukti Sardjono
Executive Director GAPKI
