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Indonesia's Palm Oil Production Set to Increase

25 April 2012
USDA Foreign Agricultural Service

INDONESIA - Indonesian soybean meal (SBM) consumption will increase from 3 MMT in MY 2010/2011 to 3.3 MMT in MY 2011/2012 due to higher animal feed production. Post predicts a further increase in SBM domestic consumption to 3.5 MMT in MY 2012/2013.

Post expects that the forest moratorium implemented in 2011 will not broadly impact Indonesia’s crude palm oil production (CPO) during the next two marketing years. Indonesian CPO production reached 23.6 million metric ton (MMT) in marketing year (MY) 2010/2011.

The production will increase to 25 MMT in MY 2011/2012; and 26.4 MMT in MY 2012/2013. Ninety percent of the additional CPO production derives from expanded production areas, with yield improvement accounting for the remaining 10 per cent.

Estimated CPO production figures imply that Indonesia will produce 109 MMT of fresh fruit bunches (FFB) in MY 2011/2012; and 116 MMT of FFB in MY 2012/2013. Thus, Indonesia is expected to produce 6.55 MMT of palm kernel (PK), 2.9 MMT of palm kernel oil (PKO), and 3.55 MMT of palm kernel meal (PKM) in MY 2011/2012 and 7 MMT of PK, 3.13 MMT of PKO, and 3.8 MMT of PKM in MY 2012/2013.

Indonesian copra production will slightly increase from 1.46 MMT in MY 2010/2011 to 1.48 MMT in MY 2011/2012 due to supportive weather. Should the weather remain supportive in current marketing year, copra production will further increase more significantly to 1.6 MMT in MY 2012/2013.

Estimated copra production figures conclude that Indonesia will produce 900,000 metric ton (MT) of coconut oil (CNO) and 475,000 MT of copra meal (CM) in MY 2011/2012 and 970,000 MT of CNO and 495,000 MT of CM in MY 2012/2013.

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