March 08, 2023 (MLN): The palm oil industry has lost its growth momentum due to the slow expansion of plantation areas, high input costs, and stringent sustainability standards, as well as insufficient replantings and management constraints that have resulted in below potential yields, Thomas Mielke, Executive Director of ISTA Mielke GmbH Oil World stated while speaking at the POC2023 conference in Kuala Lumpur.
Mielke expressed that the growth momentum of the industry has slowed down significantly.
He also highlighted that the expansion of plantation areas has reduced, and the high input costs, along with stringent sustainability standards, have deterred investors from investing in the industry.
"Insufficient replantings and management constraints have led to palm yields being below their potential," he noted. He further added that he expects the RBD palm olein free-on-board price to average $1,150 per ton for July/December this year.
The palm oil industry has been facing sustainability issues for quite some time now, with concerns being raised about deforestation, wildlife habitat destruction, and human rights violations. The industry has been taking steps to address these concerns, with companies and organizations implementing various sustainability standards and practices.
Despite these efforts, the industry still faces challenges, and experts like Mielke believe that the industry needs to do more to address these issues and attract investment.