The World Palm Oil Production Might be 127 million tons in 2030

The World Palm Oil Production Might be 127 million tons in 2030

InfoSAWIT, JAKARTA – The cheaper crude palm oil (CPO) price in the world because of the decreasing crude oil price does not stop the industries to develop in the world.

Some countries would even focus to develop palm oil plantation, such as, the countries in Africa and Philippine. Both regions have even made strategic scheme to develop palm oil.

It might happen for the world CPO demand would never decrease. Indonesian Palm Oil Board (IPOB) predicted, the CPO demand will keep increasing as same as the increasing world population and the changing usage of source of energy from fossil base to vegetable (biofuel) usage.

Besides the vegetable oil product usage in fat (such as, butter, lard, fish oil, tallow, and greese) in the world is limited, the ability and capability to fulfill the world needs tend to decrease.

If in 2010 the fat demand reached 14,3% or 24,6 million tonsof the fat and oil demands that reached about 171 million tons, in 2030 it is prediced, it would decrease only about 11,2% or 39 million tonsof the total needs in the world reaching 355 million tons.

Vice Chairman I, IPOB, Sahat Sinaga said, it happens for the soft oil productivity per year per hectare would be only about 0,2 to 0,5 ton, or could be said that the productivity is relatively small. The areas in sub tropical region are limited too. So the hope of the world would finally be to the vegetable oil having high productivity.

It is normal that palm oil plantation sector in the world keeps growing and the CPO production would increase as same as the increasing demand.

If in 2010 the CPO and CPKO production just reached 51 million tons, in 2030,the production of CPO and CPKO might be reaching 127 million tons.

Palm oil plantation development would aim to two CPO producers in the world, that is, Indonesia and Malaysia. But Malaysia would be stagnant to develop it for it has 5 million hectares only.

The limited areas urged the government of Malaysia to develop the productivity to get higher yield and or plantation expansion out of Malaysia, such as, Indonesia and Africa. “They hope Indonesia and 12 other countries to produce palm oil out of Indonesia,” Sinaga said.

Indonesia has different situation for having more areas to plant and develop palm oil.

In every year, palm oil plantation keeps developing. It happens for the planted areas done by palm oil plantation companies nationally, by  the people, and or by the government’s palm oil plantation companies.

According to Ministry of Agriculture that InfoSAWIT got, it is predicted, the average palm oil plantation expansion in every year in 2000 to 2014, was 9,05% done by the smallholders, 4,78% done by the private, and0,72% done by the government.

The average palm oil plantation expansion nationally might be reaching 6,12% or 400 thousand hectares in every single year.

The fast palm oil plantation expansion is a concern for the environmental campaigners. They concerned that it would be bad for the environment and forest damage.

Still based on what InfoSAWIT traced, the highest planted palm oil areas took place in 2005 to 2006. At the time, the expansion reached about 1,1 million hectares. The smallest planted areas happened in 2006 to 2007,reaching about 171 thousand hectares.

But now, the best solution to the concern of the environmental campaigners is being searched. One thing to do is by implementing the sustainable cultivation based on the principles and criteria in Roundtable on Sustainable Palm Oil (RSPO)which is voluntarily done and by implementing Indonesian Sustainable Palm Oil(ISPO) which is an obligation to do. (T2)

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