Asian farmers plant to boost palm oil output, seedling shortage slows pace

Published Sep 19, 2022

Tridge summary

Farmers across Asia are experiencing a shortage of seedlings for palm oil production, which could delay the industry's recovery from the COVID-19 pandemic and keep prices elevated due to reduced supply and increased demand. The slowdown in production growth, already affected by labor shortages during the pandemic, is further compounded by the need to replant and expand plantations. This situation is exacerbated by a decrease in supply of germinated sprouts, as oil palm nurseries have scaled back production. Countries like Indonesia and Malaysia are struggling to meet internal demand and export commitments, leaving a gap that other countries like India are unable to make up. As a result, India's expansion plans are facing challenges, despite the high demand for palm oil in the global market.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

JAKARTA: Farmers across Asia are busy planting trees to boost palm oil production but nurseries are struggling to keep up with demand for sprouts and seedlings, risking a delay in the industry's recovery from the COVID-19 pandemic. The seedlings shortfall could slow plantation, capping production growth and keeping palm oil prices elevated, industry officials said, as the world already grapples with lofty inflation. Asia produces more than 90 per cent of the world's cheapest edible oil used in cooking, baking and cosmetics. The production growth of palm oil stalled in recent years, partly due to labour shortages during the COVID-19 pandemic, but farmers are now looking to replant or expand plantations amid rising prices. The demand surge comes as supply for germinated sprouts, used to make seedlings, has fallen as oil palm nurseries scaled down production during the pandemic to adjust to weaker demand. Traditional growers Indonesia and Malaysia, which account for more than 80 per ...

Source: Channelnewsasia