Published on: May 11, 2021
IndexBox: Streamed live on May 6, 2021
In March 2021, the futures price for crude palm oil reached its highest level of 954 US$/MT in 13 years, according to the Malaysian Palm Oil Council, March 23. This is due to limited supply from manufactures as a result of the COVID-19 pandemic.
Malaysia, the world’s second-largest palm oil producer, faces severe labor shortages. Since the beginning of the pandemic, the country has stopped hiring foreign workers, and the former migrants have returned to their homeland. Malaysian suppliers have asked the government to fill a 50,000 labor shortage. Without filling this shortage we can expect a potential 20% drop in palm oil production. They also ask to cut product taxes and invest additional funds in the industry.
Over the next two years, the rising demand from the world’s two largest importers, India and China, is expected to become the main driver for the palm oil market growth. These economies recover, and rapid urbanization contributes to an increase in the need for food products. Falling production and rising prices for sunflower oil, as a result of the sunflower harvest failure last year, could further fuel demand for palm oil.
In this webinar the current situation and the future outlook will be discussed with Fitrian Ardiansyah, Executive Chairman & CEO at IDH Indonesia, Michaelyn Baur, Managing Director Regional Expertise Center at Solidaridad Network and Monique van Wijnbergen, Sustainability and Corporate Communication Director at Natural Habitats.Palm Done Right, Palm Oil Market
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