Indonesia will become world’s #1 crude palm oil producer

With the price of crude oil going up, some countries are gearing up their fuel producing activities in other ways. Indonesia will soon become the world’s #1 crude palm oil (CPO) producer, with Malaysia #2. The likely output for this year will be somewhere between 15.2 -15.4 million tonnes.

There is a growing demand for palm-based biodiesel and biofuel. This is great news and add to that, India has just announced it will be cutting palm oil import tarifs. There are a bunch of factors affecting price and in this global economy everything is in flux. The S.Americans are re-tooling during this La Nina year, and start growing sugar cane in place of soybean.

The CEO of the Malaysian Palm Oil Promotion Council, Tan Sri Yusof Basiron, said “Currently, I believe more than 50% of Malaysia’s CPO production is dependent on Indonesian migrant workers, while 20% to 25% of Indonesia’s total production is actually contributed by Malaysian plantation companies investing there,” I fully support anything that will reduce the use of fossil fuels.