Palm oil production in top Asian producers to remain tight in 2023

Best News Website or Mobile Service

WAN-IFRA Digital Media Awards Worldwide

Best News Website or Mobile Service

Digital Media Awards Worldwide

KUALA LUMPUR : Palm oil production in the world's largest producers, Indonesia and Malaysia, will remain squeezed this year amid anticipation of rising demand from key market China, industry officials said in a seminar on Thursday.

The two Southeast Asian nations account for around 85 per cent of the world's exports, but output have been stagnant in recent years due to a pandemic-induced labour shortage, low fertiliser application and slow expansion of new estates.

"After yet another disappointing year in 2022, the market expects palm oil output to increase in 2023 by around 2.5 million tonnes, led by Indonesia," said Julian McGill, regional head at agribusiness consultancy LMC International.