Indonesia's Palm Oil Exports Rise Amid Volatile Path Towards Price Recovery
Indonesia's palm oil exports (palm oil and palm kernel) rose by 9.1 percent (month-on-month) to 2.04 million metric tons in February, according to data from the Indonesian Palm Oil Association (Gapki). This level - the highest in about five years - was brought on due to increased purchases from China and Pakistan. Indonesia's palm oil industry may experience a better year in 2013 as exports in the first two months of 2013 rose 29 percent from last year.
| January 2013 |
February 2013 |
Total 2013 (Jan-Feb) |
|
| Indonesia's Palm Oil Exports (in million metric tons) |
1.87 | 2.04 | 3.91 |
Last year, Malaysia's benchmark palm oil price dropped by about 30 percent. Analysts pose that the path to palm oil price recovery is going to be a long and volatile one.
Palm oil is one of the most produced and consumed oils in the world. Indonesia and Malaysia, that together account for 85 to 90 percent of total global palm oil production, dominate this industry. Indonesia is currently the largest producer and exporter of palm oil. Few Indonesian industries have shown such robust growth as the palm oil industry during the last 15 years. This growth is visible in the country's production and export numbers as well as in the quantity of its palm oil estate area. Driven by increased global demand and higher yields, palm oil cultivation has been expanded significantly by Indonesian farmers and conglomerates (at the expense of the environment and production numbers of other agricultural products as farmers switch to palm oil plantation).