PALMOILMAGAZINE, SINGAPORE – Indonesia-based palm oil producer Bumitama Agri Ltd. reported improved performance for the nine-month period ending September 2024, driven by a surge in crude palm oil (CPO) and palm kernel (PK) prices. The company gained significant momentum as CPO prices broke through the psychological threshold of MYR 4,500 per ton by the end of October—the highest level since mid-2022. This price rally was fueled by tighter global vegetable oil supplies, influenced by geopolitical tensions in the Black Sea region and policy shifts from major producing countries.
Much like the conditions in 2022, palm oil supplies were once again constrained due to lower-than-expected production and stock levels in Indonesia during the first nine months of the year. Prolonged extreme weather has been cited as a key factor contributing to this production shortfall.
According to an official statement received by Palmoilmagazine.com , Bumitama’s fresh fruit bunch (FFB) harvest from both nucleus and plasma plantations reached 802,271 tons in the third quarter of 2024, up slightly from 775,864 tons in the previous quarter. CPO production also rose from 265,200 tons in Q2 to 269,093 tons in Q3. Following similar production trends seen in 2020 and 2013, Bumitama anticipates a significant boost in output in the fourth quarter, with potential FFB growth ranging between 25% and 36% compared to Q3.
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The third quarter of 2024 also marked the fourth consecutive increase in Bumitama’s average selling price (ASP) for CPO. From a low of IDR 10,817 per kg in Q3 2023, ASP climbed to IDR 12,735 per kg in Q3 2024—an 18% year-on-year increase and a 4% rise from Q2 2024. This uptick in both pricing and production is expected to further enhance the company’s financial performance into the year-end, accelerating gains in the second half of 2024.
In addition to its operational achievements, Bumitama received three prestigious awards in early November under the Food & Beverages + Food & Drug Retailing category from The Edge Singapore Billion Dollar Club 2024. (P2)
