Seemingly exponential growth in demand for palm oil slowed in 2015, as the market was buffeted by severe weather conditions, such as El Niño. This affected production and, at the same time, a slump in global crude oil prices, to less than USD 30 a barrel, reduced demand for palm oil for biodiesel.
In 2015, Indonesia and Malaysia exported a total of 42.7 million tonnes of palm oil. In Indonesia, the forecast for 2016 is for a small increase in overall production to 33 million tonnes, from 32 million tonnes in 2015. This growth in production is based on new trees, planted in 2010-2011, coming to maturity. However, the El Nino phenomenon is expected the limit production growth.
For further information, please contact:
Goh Benh Wah
t: +6 (03)31652318
PT SGS Indonesia
t: +62 (0)21 781 8111 ext 230
Updated: March 8, 2016