PALMOILMAGAZINE, KUALA LUMPUR – The palm oil industry in Malaysia is expected to see moderate growth over the next year, with projections indicating that crude palm oil (CPO) production in 2024 will increase to approximately 18.50 to 18.75 million metric tons. This represents a rise of about 0.30% to 1.06% compared to the previous year.
This anticipated sluggish progress could mark the seventh consecutive year of delayed palm oil expansion in Malaysia. The stability observed reflects the lingering impacts of various factors, notably the prolonged El Niño phenomenon.
Since 2016, Malaysia has grappled with a significant decline in CPO production due to El Niño. During that year, CPO production plummeted to 17.32 million metric tons, marking a drastic decrease of 2.641 million metric tons, or 13.21%, compared to the preceding year. Efforts to recover production levels have presented ongoing challenges for the country’s palm oil industry.
Also Read: OCBC Global Forecasts CPO Prices to Reach RM 3,650 per Ton in 2024
As Palmoilmagazine.com quoted from PalmOilAnalytic, the level of El Niño that decreased the harvests, delivered long term – impacts for the country and postpone the country to get good production recovery for the next years. Though there were same efforts to mitigate the bad weather and other challenges, such as, price fluctuation and regulations, the industries may have been difficult to get the moment to get back.
Besides, the uncertain economy in the globe, trade dynamic, sustainability issues keep being additional issues for Malaysia as the second biggest palm oil producer country. The stakeholders in the country get more focus on innovation, technology adoption, sustainable practices to escalate plantation production, security, and competition in facing the challenges. (T2)
