"The decline in prices negatively affected the performance of the industry."Jakarta (ANTARA News) - The Association of Indonesian Palm Oil Producers (GAPKI) has predicted that crude palm oil (CPO) production will reach 29 million tonnes by the end of this year.
"We expect an increase in CPO production this year, compared with last year`s figures of 26.5 million tonnes," Head of Marketing GAPKI Susanto said here on Tuesday.
"With the projected increase in production this year, exports are also expected to rise," he stated.
Susanto said if Indonesia could produce 28 million tonnes of CPO, while domestic consumption remained within 7 million tonnes, some 21 million tonnes of CPO could be exported.
Total production of CPO and its derivatives in 2012 reached 26.5 million tonnes, a significant increase from 23.5 million tonnes in the previous year.
Secretary General of GAPKI Supriyono Djoko said the value of CPO exports was predicted to drop to US$20.78 billion this year, from US$21.66 billion in 2011.
He noted that the export value of CPO and its derivatives reached US$19.66 billion in November 2012.
That happened due to a sharp fall in CPO prices, to an average of US$999.78 per tonne last year from US$1,126 per tonne in 2011, a decline of about 12 percent, Djoko explained.
"The decline in prices negatively affected the performance of the industry," he pointed out.
Djoko said CPO prices faced a lot of pressure last year due to a slowdown in demand and increased supply of the commodity in the international market.
(U.S038/INE/KR-BSR/S012)
Editor: Priyambodo RH
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