Shortage of seedlings holding back palm oil production in Asia
RBD Palm Oil
Published Sep 20, 2022
Tridge summary
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, which could delay the industry's recovery from the COVID-19 pandemic.
Original content
The lack of seedlings could slow the expansion of plantations, limiting production growth and keeping palm oil prices high, industry officials said. Asia produces over 90% of the world's cheapest edible oil, used in cooking, baking and cosmetics. Growth in palm oil production has stalled in recent years, due in part to labor shortages during the COVID-19 pandemic, but farmers are now looking to replant or expand plantations amid rising prices. The surge in demand comes from a drop in the supply of germinated sprouts used to make seedlings as oil palm nurseries cut production during the pandemic to adjust to weaker demand. Traditional producers Indonesia and Malaysia, which account for more than 80% of global palm oil production, are focusing on replacing old oil palms that are cumbersome to harvest and less productive, while India and Thailand are also trying to expand planted areas, industry officials said. “A number of large Malaysian estates have decided that they want to ...
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