The shortfall in palm oil production was the result of the protracted El Nino weather phenomenon, GAPKI Chairman Joko Supriyono said in a press conference on the reflection of the palm oil industry in 2016 and its prospect in 2017 here on Tuesday.
"In 2016, production fell, but it was not significant. The production only dropped 3 percent," he stated.
According to GAPKI data, Indonesias palm oil production reached 34.5 million tons in 2016, comprising of 31.5 million tons of crude palm oil (CPO) and 3 million tons of palm kernel oil (PKO).
In 2015, the CPO production stood at 32.5 million tons and PKO production touched 3 million tons. In total, the palm oil production reached 35.5 million tons in 2015.
In general, palm oil production in 2016 was relatively good, despite fear that it would plunge 30 percent. As a matter of fact, the production only declined 3 percent compared to the previous year, the GAPKI chief remarked.
"Hopefully, the condition in 2017 will be better than in 2016," he added.
By the end of 2016, Indonesias palm oil stocks stood at 1 million tons, well below the average year-end stocks of 4.5 million tons.(*)
Editor: Heru Purwanto
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