BALI – The Indonesian Palm Oil Association (GAPKI) Chairman Joko Supriyono said that Indonesia’s palm oil production as of September 2022 reached 37 million tons, of which 22 million tons were exported.
He said that total palm oil production this year until December 2022 is projected to reach 51.8 million tons. It will be higher than the production in 2021 at 51.3 million tons.
“We predict that until the end of this year our total palm oil production will reach 51.8 million tons, which consist of 47 million tons of crude palm oil (CPO) and 4.8 million tons of crude palm kernel oil (CPKO). It’s slightly higher than that of last year. Our export this year is projected to reach around 30 million tons,” Joko said during the Indonesia Palm Oil Conference (IPOC) 2022 in Bali on Thursday, 3 November 2022.
He added that GAPKI realizes the war between Russia and Ukraine will affect the global market of vegetable oils, especially the sunflower. As a result, a number of countries will shift their consumption to other vegetable oils.
Such condition will then push up the prices of other vegetable oils, including palm oil. Globally, the palm oil contributes more than 30% to the total global supply of vegetable oils. “It means the palm oil is the world’s largest contributor to the total supply in the global market of vegetable oils.
Previously, the price of palm oil products soared after the war between Russia and Ukraine. Joko said that the global market of vegetable oils was also impacted by the Indonesian policy to temporarily stop exports of palm oil products in April this year.
“Considering such condition, we see that the geopolitical condition and regulations in the vegetable oils producing countries greatly affect the global trading, while other countries are facing problems of hunger that had drawn the attention of the United Nations (UN),” he said.
“Reflecting on the global phenomenon, the IPOC 2022 should become a forum for experts and stakeholders to thoroughly discuss the global market of vegetable oils, especially the palm oil industry in Indonesia,” Joko said. (*)
Source: KONTAN.CO.ID
