La Nina Rain to Lift Palm Oil Output in Top Grower to Record
- Production in Indonesia to increase as downpours raise yields
- Output growth slows as expansion and replanting plans falter
Indonesia, supplier of more than half the world’s palm oil, could see production climb to a record next year after torrential La Nina rains drench plantations and boost yields, according to a grower and refiner group.
Output may increase by 4% to almost 49 million tons from 47 million tons this year, Derom Bangun, chairman of the Indonesian Palm Oil Board, said in an interview. That’s after production this year is likely to be little changed from 2019 because of a long dry spell last year and less use of fertilizer, he said.
Although output will increase next year because of the rains and now more use of fertilizer owing to higher palm prices, the rate of annual growth is starting to slow because plantations are not expanding as fast as they once did and the replanting program is moving at a sluggish pace, Bangun said.