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Report: Indonesian palm oil ”limited growth”
26 Jan 2016Research and Markets has published a report - 'A Study of Indonesia's Palm Oil Industry 2015' – which notes that, in 2015, the country's production is expected to experience limited growth partially due to weather.
Research and Markets has published a report - 'A Study of Indonesia's Palm Oil Industry 2015' – which it says highlights the key dynamics of Indonesia's palm oil sector. The potential of the sector has been investigated along with key challenges, the company says, and the current market scenario and future prospects of the sector have also been studied.
Palm oil is the most widely produced category of vegetable oil produced globally, Research and Markets notes, despite high environmental concerns around its production. Globally, most of the palm oil is produced in Asia, Africa and South America because of the suitable weather conditions in these regions.The global consumption of palm oil has grown consistently at approximately 7% per annum for the last two decades, the company says, with the global demand growing substantially boosted by the rising consumption in emerging Asian economies primarily India and China.Indonesia is the largest palm oil producer in the world followed by Malaysia and Thailand, according to the researchers. Indonesia and Malaysia together account for over 85% of the world supply of palm oil. Indonesia produced 31 million tonnes of palm oil in 2014 and in 2015 the country's production is expected to experience limited growth due to bad weather conditions coupled with the fact that old trees have become unproductive and younger trees have not yet attained the optimal production age.In 2014, Indonesia exported 21 million metric tons of palm oil and is expected to export 21.6 million metric tons in 2015. Key destinations for Indonesian palm oil export include China, India, Malaysia, the Netherlands and Singapore.