Indonesia, the world’s top producer of palm oil is expected to see a drop in exports of 9.5% for 2014 according to the Indonesian Palm Oil Association (GAPKI). Exports for the first half of 2014 were 9.75 million tons compared to 11 million tons for the first half of 2013. India, one of Indonesia’s main buyers has increased import duties on Indonesian palm oil and shifted to purchasing rapeseed oil, and China has been shifting its purchases toward soy oil. Fadhil Hasan, executive director of the GAPKI stated that increased logistic and shipping costs, and what he referred to as a ‘black campaign’ against Indonesian crude palm oil have hurt global sales this year. Domestic demand for biodiesel has also been low, falling below the expected 3.3 million tons in the first half of the year with deals completed for only 2.8 million tons. After negative media campaigns against Indonesian crude palm oil cause global players such as Unilever and Nestle to boycott palm oil from Sinar Mas Agro Resources and Technology, Indonesian producers have been working to re-establish themselves on the global market as being environmentally responsible.
To receive relevant news stories with summaries provided by GAI Research & Insight, subscribe to Global AgDevelopments, our free weekly enhanced eNews service