PALMOILMAGAZINE, KARACHI – In 2024, numerous industries worldwide are poised to confront significant challenges that will greatly influence their performance. The assessment of potential impacts on industries will primarily revolve around five key factors.
Fadhil Hasan, Chairman of the Foreign Affairs Indonesian Palm Oil Association (IPOA), highlighted the first factor as climate change, specifically El Nino. This is a critical concern as it is expected to have widespread impacts on agricultural production, water distribution, and other infrastructure.
“In order to confront the tangible consequences of climate change, stakeholders should intensify their efforts in adaptation and mitigation,” emphasized Fadhil during his presentation at the Pakistan Edible Oil Conference (PEOC) on January 12, 2024, in Pakistan.
Also Read: Critical Determinants Impacting Palm Oil Production in the Year 2024
The second is the economy around the globe. The Fed’s interest rate, which keeps increasing, becomes the main focus when considering the impacts of economic progress. But critical questions were raised: would a higher interest rate continue, and how would China recover its economy and influence commodity prices? Every industry should smartly see the progress to anticipate the potential impacts.
In geopolitics, the conflict between Egypt and Palestine and the tension in the Black Sea are the main risks that could escalate commodity prices. Not only create political uncertainty but also mislead trade paths and supplies around the globe. Every industry should develop adaptive and responsive strategies for unstable geopolitical dynamics.
The energy transition is the fourth. How energy and commodity industries solve decarbonization and energy transition would be the key to success. The increasing use of plant material as fuel would be the main focus heading to clean energy, but it also needs to notice the impacts on export and natural resource sustainability.
Also Read: Palm Oil Production Growth in Indonesia, Yet Exports Anticipated to Drop by 4% in 2024
The implementation of the European Union Due Diligence Regulation (EUDR) and forced labor would be the fifth. This would influence industrial performance. Every company is expected to confirm its obedience to every regulation and reinforce its action to stop forced labor practices. This would qualify not only ethical and sustainable standards but also avoid legal and reputational damage that would be a loss for doing business.
To face the complex challenges, the industries are hoping to escalate flexibility and response. Collaboration among stakeholders, innovation in technology, and adaptive business strategies would be the successful keys to facing the complex dynamics that would influence industrial performance in 2024. (T2)
