A Palm Storm is Brewing

As land availability is limited, old oil palm tree replanting programmes are important in order to increase palm oil production in Indonesia and Malaysia. But a combination of large expenditure, which is needed for replanting, and a relatively low palm oil price environment has slowed down the much-needed replanting programme in both countries. This poses the threat of a slowing palm production in Indonesia, Malaysia and globally as of 2022, when palm oil supplies will reflect the scaled-back investments in replanting activities and expansions. While the level of global palm oil production in 2030 will depend on the scale of replanting activities in Indonesia and Malaysia.

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RaboResearch Senior analyst Oscar Tjakra discusses the impact of slow replanting programmes and limited land availabilities for oil palm plantation expansion in Indonesia and Malaysia on global palm oil supplies and prices from 2018-2030. From the RaboResearch Food & Agribusiness Agri Commodities podcast channel.