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Malaysian Palm Oil Output to Drop for Third Year on Labor Crunch

  • Country’s main growers group cuts forecast to 18 million tons
  • Foreign workers returning at ‘snail pace,’ says group head
Workers load harvested palm oil fruit bunches onto a truck at a plantation in Malaysia.

Workers load harvested palm oil fruit bunches onto a truck at a plantation in Malaysia.

Photographer: Samsul Said/Bloomberg
Updated on

Malaysian palm oil production is set to decline for a third year as a worker shortage in plantations continues to hamper harvesting, according to the nation’s largest group of growers.

Total crude palm oil output for 2022 from the world’s second-largest grower will be 18 million tons, said Joseph Tek, the new chief executive of the Malaysian Palm Oil Association, which represents 40% of planted palm by area in the country.