Intensifying production: Indonesian palm oil market

摘要

Concurrent with the increasing global population, vegetable oil production and consumption is also set to rise. Global palm oil output is projected to continually increase and reach a record high of 63.3 M tonnes in 2014/2015, up by 6% year-on-year driven by higher Indonesian production. Demand is also expected to improve, particularly triggered by the biofuel and food sector. Global ending stocks are forecast to rise by 9% year on year to 8.4 M tonnes. Currently, Indonesia is one of the biggest palm oil producers in the world, together with Malaysia. With its plans to increase global capacity, Indonesia is expected to remain a key industry player. Indonesian palm oil production totalled 28.4 M tonnes in 2013, 8 M tonnes of which were domestically consumed while 21.4 M tonnes were exported. Indonesia converts some of its palm oil into biodiesel, of which it consumes 1 M tonnes and exports 1.5 M tonnes.