Malaysian palm oil production to fall
Wednesday, 29 August 2007
KUALA LUMPUR, Aug 28 (AFP): Malaysia, the world's top producer of palm oil, said Monday that output in 2007 will likely fall to 14 million tonnes, the lowest in two years and below expectations after heavy flooding.
Sabri Ahmad, chairman of the Malaysian Palm Oil Board, told reporters that production was lagging behind the first six months of 2007 and would likely be lower than the previous estimate of 16.5 million tonnes for this year.
"The decrease is due to floods in Johor state and the normal cycle of oil palm trees," he said on the sidelines of a palm oil industry gathering.
Palm oil production in 2006 was 15.8 million tonnes, up from 14.96 million tonnes in 2005.
Officials, however, remained positive about the outlook of the industry with prices expected to remain high until next year, led by rising demand from China, India, the United States and Europe.
Sabri Ahmad, chairman of the Malaysian Palm Oil Board, told reporters that production was lagging behind the first six months of 2007 and would likely be lower than the previous estimate of 16.5 million tonnes for this year.
"The decrease is due to floods in Johor state and the normal cycle of oil palm trees," he said on the sidelines of a palm oil industry gathering.
Palm oil production in 2006 was 15.8 million tonnes, up from 14.96 million tonnes in 2005.
Officials, however, remained positive about the outlook of the industry with prices expected to remain high until next year, led by rising demand from China, India, the United States and Europe.