InfoSAWIT, JAKARTA –Palm oil could be said as the multifuncional harvest for it could be for food, industries, and fuel material sectors. Palm oil could be consumed for the food application too.
In the last decade, palm oil consumption for bioduelsignificantly increases. The average increasing oil production is predicted to be 5,9% from 2011 until 2020. The global palm oil production might be 84 millions tons. Indonesia mostly contributes to the productions, reaching 7,8% while Malaysia reaches 2,7%.
Global Vice President, Consulting Frost & Sullivan, Chris de Lavigne predicted, in 2020 palm oil markets will be 84 millions tons or represent 45% from all vegetable oil production in the world. Chris also said, palm oil price has complex problem because it is influenced by one or other factors and will significantly make unstable price.
As InfoSAWITwrote in June 2015 edition, Frost & Sullivan predicted, some key factors effecting palm oil price are the vegetable oil demands in the world, the stocks of palm oil, the vegetable oil stocks, the available areas, logistic, the storage, the usage ratio stocks, and the price of the energy.
He also mentioned, the weather becomes the most important factor in influencing the palm oil stock. “The weather becomes one key factor in vegetable oil, including palm oil. This is the important catalyst to palm oil price and the catalysator to palm oil price in 2015,” he said.
Malaysia and Indonesia have a little bit different developmental phase, agenda, and goals. “Indonesia should be faster to get what has been left in the downstream sectors and their (Malaysia) policies have reflected the goals,” he said.
He also thought, Indonesian palm oil industries face many challenges, such as, infrastructures, increasing workers’ costs, developing biodiesel markets, additional downstream capacity, the trades, and the environmental problems.(T2)