Palm Output Hit by Double Whammy of Floods and Scarce Labor
- Key growing states affected by floods, leading to crop losses
- Malaysian output may drop to 18.6 million tons: Bek-Nielsen
A worker inspects palm oil fruit bunches at a palm oil estate in Malaysia.
Photographer: Joshua Paul/BloombergThis article is for subscribers only.
Palm oil production in Malaysia is being dealt a double blow from a persistent shortage of workers to harvest the crop and torrential rains that have triggered floods in key growing areas of the world’s No. 2 supplier.
Relentless heavy rain and thunderstorms have led to flash floods in parts of Sabah, Sarawak, Johor, Pahang and Perak -- the biggest palm oil-producing states in the country. While palm trees are typically water-loving and resistant to wet weather, prolonged floods could prevent harvesting -- leading to overripe fruit and poor oil quality -- and disrupt transport of fruit to mills.