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% of the world's cheapest edible oil used in cooking, baking and cosmetics.
"A number of big Malaysian estates they want to replant, causing a shortage of availability of seedlings in the market," said Tan Kim Tun, a Malaysian nursery operator based in the state of Johor. Against this backdrop, palm oil prices hit a record high of 7,268 Malaysian ringgit per tonne this year and remain above the average seen in 2010-2020 despite a big downward correction recently.
"We can increase our capacity but it will take time... it will at least take one year before you can get germinated seed. The shortage cannot be resolved fast," said Ahmad Parveez Ghulam Kadir, director-general of Malaysian Palm Oil Board . Meanwhile, Indonesia uses around 95% of the seedlings it produces to meet domestic demand and exports only around 5%, Siregar said, forcing importers such as India and Myanmar to rely on Malaysia and Thailand.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Asia-Pacific Markets Mixed; Fed, Bank of Japan Rate Decisions Ahead This WeekShares in the Asia-Pacific were mixed on Monday ahead of major central bank meetings this week.
Read more »
First Mover Asia: Cryptos Slide in Weekend Trading; Did Ethereum Pick the Wrong Time to Merge?Ether, bitcoin and other major cryptos drop in weekend trading as investors eye the coming FOMC meeting and housing data; the Ethereum blockchain faces multiple headwinds in the near future. JPRubin23 and TheSamReynolds report
Read more »
TGI Fridays signs historic deal to expand chain to South and Southeast AsiaThe development agreement is for 75 new restaurants over the next 10 years.
Read more »
Lack of Young Farmers a Concern for Agricultural IndustryThe number of farmers in Illinois is declining and the most recent census data shows the average age of a farmer is nearly 60.
Read more »
Invasive fruit fly prompts treatments in Sunnyvale, Santa ClaraState agriculture officials will place pesticide in parts of Sunnyvale and Santa Clara starting this weekend, in an emergency effort to eradicate invasive fruit flies from Asia.
Read more »