MUMBAI/KUALA LUMPUR/JAKARTA: Farmers across Asia are busy planting trees to boost palm oil production but nurseries are struggling to keep up with demand for sprouts and seedlings, risking a delay in the industry's recovery from the COVID-19 pandemic.
The seedlings shortfall could slow plantation, capping production growth and keeping palm oil prices FCPOc3 elevated, industry officials said, as the world already grapples with lofty inflation. Asia produces more than 90% of the world's cheapest edible oil used in cooking, baking and cosmetics.
The production growth of palm oil stalled in recent years, partly due to labour shortages during the COVID-19 pandemic, but farmers are now looking to replant or expand plantations amid rising prices.
The demand surge comes as supply for germinated sprouts, used to make seedlings, has fallen as oil palm nurseries scaled down production during the pandemic to adjust to weaker demand.
Traditional growers Indonesia and Malaysia, which account for more than 80% of the global palm oil output, are focusing on replacing old oil palm trees that are cumbersome to harvest and less productive, while India and Thailand are trying to expand acreage, industry officials said.
"A number of big Malaysian estates (have decided) they want to replant, causing a shortage of availability of seedlings in the market," said Tan Kim Tun, a Malaysian nursery operator based in the state of Johor.
Global annual palm oil production growth slowed to 0.5% between 2018 and 2022 from a 4.8% pace in the previous four years, according to data compiled by the U.S. Department of Agriculture.
Against this backdrop, palm oil prices hit a record high of 7,268 Malaysian ringgit ($1,606.19) per tonne this year and remain above the average seen in 2010-2020 despite a big downward correction recently.
New plants take four years to grow before harvest, meaning production will stay tepid and prices high for a while yet, said a New-Delhi based dealer with a global trading firm.
"As the productive trees are chopped, production growth will remain negligible for a few years," said the dealer. "Replanting will support palm oil prices for the next few years."
SEED SHORTAGE
Oil palm nurseries will struggle to ramp up output overnight to meet strong demand as it takes more than a year to make a seedling.
"We can increase our capacity but it will take time... it will at least take one year before you can get (a) germinated seed. The shortage cannot be resolved fast," said Ahmad Parveez Ghulam Kadir, director-general of Malaysian Palm Oil Board (MPOB).
Industry officials estimate Malaysia has the capacity to produce up to 80 million germinated sprouts a year and Indonesia 200 million sprouts.
Indonesia, however, can currently only produce half of that amount, or 110 million per year, said Hasril Hasan Siregar, head of research and productivity improvement at Indonesian Palm Oil Association (GAPKI).
Meanwhile, Indonesia uses around 95% of the seedlings it produces to meet domestic demand and exports only around 5%, Siregar said, forcing importers such as India and Myanmar to rely on Malaysia and Thailand.
Indeed, demand for Malaysia's germinated seeds surged 30% in Jan-Aug 2022 period from a year ago to nearly 38 million seeds, according to data compiled by the MPOB. For Indonesia's sprouts, demand jumped nearly 24% over the same period.
Demand for Malaysia's germinated seeds is so high, that some nurseries are having to reject orders, said Tan, adding that his nursery has a waiting list of around 6 months.
All of this is causing problems for India, which is aiming to rapidly expand its oil palm area.
"The world needs more and more palm oil. For many poor consumers, it's the only option," said a Mumbai-based dealer with a global trading firm. The dealers declined to be named because of company policy.
India needs 20 million sprouts in 2022 but only 75% of that demand has been met by imports from Indonesia, Malaysia, Thailand and Costa Rica so far this year, said an official with TS Oilfed, India's biggest importer of oil palm sprouts, who declined to be named because of company policy.
Reuters
Mon Sep 19 2022
![ANALYSIS: Asian farmers plant to boost palm oil output, seedling shortage slows pace ANALYSIS: Asian farmers plant to boost palm oil output, seedling shortage slows pace](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2021-05/41620805959_kelapasawit.jpg)
Oil palm nurseries will struggle to ramp up output overnight to meet strong demand as it takes more than a year to make a seedling. - Filepic
![MARA diminta terus teroka potensi industri halal global - Ahmad Zahid MARA diminta terus teroka potensi industri halal global - Ahmad Zahid](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-07/71721105894_AhmadZahidHamidi.jpg)
MARA diminta terus teroka potensi industri halal global - Ahmad Zahid
MARA diminta untuk terus meneroka potensi antarabangsa dalam industri halal yang mempunyai prospek besar menerusi program Gate to Global (GTG).
Kim Pan-gon letak jawatan berikutan komitmen peribadi
Pengurus pasukan kebangsaan Malaysia, Kim Pan-gon menyatakan perletakan jawatan tersebut kerana komitmen peribadi.
#AWANInews
#AWANInews
![Penggunaan dron tingkat keberkesanan pemantauan pencemaran - Nik Nazmi Penggunaan dron tingkat keberkesanan pemantauan pencemaran - Nik Nazmi](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-07/71721102997_SimposiumDronKeban.jpg)
Penggunaan dron tingkat keberkesanan pemantauan pencemaran - Nik Nazmi
Penggunaan dron membolehkan pemantauan pencemaran alam sekitar dan hidupan liar serta pencerobohan hutan dilaksanakan dengan lebih berkesan.
![Kim Pan-gon letak jawatan ketua jurulatih Harimau Malaya Kim Pan-gon letak jawatan ketua jurulatih Harimau Malaya](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-06/71718142997_KimPanGon.jpg)
Kim Pan-gon letak jawatan ketua jurulatih Harimau Malaya
Kim Pan-gon menjadi satu-satunya individu yang bakal meninggalkan pasukan manakala Pau Marti bersama staf sokongan yang lain kekal di Kelana Jaya.
![Bekas pengawal peribadi Wan Azizah cedera kemalangan Bekas pengawal peribadi Wan Azizah cedera kemalangan](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-07/51721109015_bekaspengawalperib.jpg)
Bekas pengawal peribadi Wan Azizah cedera kemalangan
Bekas anggota polis wanita yang kini bekerja sebagai pengawal peribadi cedera setelah motosikal ditunggangnya melanggar sebuah SUV di lebuh raya PLUS.
![Rang Undang-undang Kebebasan Maklumat dijangka dibentang akhir tahun ini - Kulasegaran Rang Undang-undang Kebebasan Maklumat dijangka dibentang akhir tahun ini - Kulasegaran](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-07/81719996195_MKulasegaran.jpg)
Rang Undang-undang Kebebasan Maklumat dijangka dibentang akhir tahun ini - Kulasegaran
RUU Kebebasan Maklumat dijangka dibentangkan di Parlimen pada akhir tahun ini selepas cadangan ketetapan bagi penggubalan Akta Kebebasan Maklumat dibawa ke Jemaah Menteri untuk kelulusan.
![Azizi dilantik Ketua Polis Perak baharu Azizi dilantik Ketua Polis Perak baharu](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-07/51721108438_azizi.jpg)
Azizi dilantik Ketua Polis Perak baharu
Timbalan Ketua Polis Perak Datuk Azizi Mat Aris dilantik sebagai Ketua Polis Perak yang baharu hari ini.
![ADUN Rembia sertai Pas, tak 'lompat parti' - Takiyuddin ADUN Rembia sertai Pas, tak 'lompat parti' - Takiyuddin](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-07/51721108165_ADUNRembiaPN.jpg)
ADUN Rembia sertai Pas, tak 'lompat parti' - Takiyuddin
Menurut Takiyuddin, keahlian Muhamad Jailani yang juga wakil rakyat UMNO diterima pada 10 Jun tahun lalu, namun diumumkan secara rasmi hari ini.
Kita perlu belajar hidup dengan COVID-19 - Pakar
Itu kata Pakar Perubatan Kesihatan Awam, Bahagian Kawalan Penyakit, Kementerian Kesihatan Malaysia (KKM), Dr Aznida Mohamad Zaki yang berkata pihaknya akan berusaha semampu mungkin dalam menggalakkan praktis kendiri dikalangan orang awam bagi mencegah penularan wabak seperti mana yang pernah dilakukan sebelum ini.
LHDN lulus 141,406 permohonan PKPS 2.0
Lembaga Hasil Dalam Negeri (LHDN) telah meluluskan sebanyak 141,406 permohonan program khas pengakuan sukarela (PKPS) 2.0 yang melibatkan 102,572 bilangan kes pembayar cukai individu, 27,707 bilangan kes syarikat dan selebihnya melibatkan lain kategori seperti pertubuhan.
![Stok minyak sawit Malaysia meningkat 4.35 peratus kepada 1.83 juta pada Jun - MPOB Stok minyak sawit Malaysia meningkat 4.35 peratus kepada 1.83 juta pada Jun - MPOB](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-03/71710408411_MinyakSawitMalays.jpg)
Stok minyak sawit Malaysia meningkat 4.35 peratus kepada 1.83 juta pada Jun - MPOB
Jumlah stok minyak sawit Malaysia meningkat 4.35 peratus kepada 1.83 juta tan pada Jun 2024 daripada 1.75 juta tan pada Mei 2024, menurut Lembaga Minyak Sawit Malaysia.
![KPK cadang semak semula levi untung luar biasa sawit dalam Belanjawan 2025 - Johari KPK cadang semak semula levi untung luar biasa sawit dalam Belanjawan 2025 - Johari](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2023-09/71694504905_JohariGhanibahas.jpg)
KPK cadang semak semula levi untung luar biasa sawit dalam Belanjawan 2025 - Johari
KPK bercadang menyemak semula levi keuntungan luar biasa (WPL) ke atas minyak sawit di negara ini dalam pembentangan Belanjawan 2025, seiring dengan harga semasa komoditi itu.
![Stok minyak sawit Malaysia naik 0.5 peratus kepada 1.75 juta tan metrik pada Mei - MPOB Stok minyak sawit Malaysia naik 0.5 peratus kepada 1.75 juta tan metrik pada Mei - MPOB](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-03/71710408411_MinyakSawitMalays.jpg)
Stok minyak sawit Malaysia naik 0.5 peratus kepada 1.75 juta tan metrik pada Mei - MPOB
Stok minyak sawit Malaysia meningkat 0.5 peratus kepada 1.75 juta tan metrik pada Mei 2024 daripada 1.74 juta tan metrik pada April 2024, demikian menurut Lembaga Minyak Sawit Malaysia (MPOB).
![Mesyuarat PAC 2024 MPOB teliti projek penyelidikan, isu industri sawit negara Mesyuarat PAC 2024 MPOB teliti projek penyelidikan, isu industri sawit negara](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-03/81710845450_TBladangsawit.jpg)
Mesyuarat PAC 2024 MPOB teliti projek penyelidikan, isu industri sawit negara
Lembaga Minyak Sawit Malaysia (MPOB) akan meneliti projek penyelidikan dan isu dalam industri sawit Malaysia.
![Stok minyak sawit pada Mac susut 10.68 peratus kepada 1.71 juta tan - MPOB Stok minyak sawit pada Mac susut 10.68 peratus kepada 1.71 juta tan - MPOB](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-03/71710408411_MinyakSawitMalays.jpg)
Stok minyak sawit pada Mac susut 10.68 peratus kepada 1.71 juta tan - MPOB
Stok MSM negara menurun 22.22 peratus kepada 797,974 tan pada Mac daripada 1.03 juta tan yang dicatatkan pada Februari.
![MPOB gesa pemain industri minyak sawit eksport produk tokotrienol ke China MPOB gesa pemain industri minyak sawit eksport produk tokotrienol ke China](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2023-01/41674235100_MPOBLOGO.jpg)
MPOB gesa pemain industri minyak sawit eksport produk tokotrienol ke China
Susulan kelulusan pada 13 Mac, tokotrienol sawit (Vitamin E) kini dibenarkan untuk eksport dan digunakan dalam aplikasi makanan di China.
![Stok minyak sawit Malaysia turun kepada 2.02 juta tan pada Januari Stok minyak sawit Malaysia turun kepada 2.02 juta tan pada Januari](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2020-08/81596645078_kelapasawit.jpg)
Stok minyak sawit Malaysia turun kepada 2.02 juta tan pada Januari
Jumlah stok minyak sawit Malaysia turun 11.83 peratus kepada 2.02 juta tan metrik pada akhir Januari 2024 daripada 2.29 juta tan metrik pada Disember tahun lepas.
![Stok minyak sawit Malaysia susut 4.64 peratus kepada 2.29 juta tan pada Disember Stok minyak sawit Malaysia susut 4.64 peratus kepada 2.29 juta tan pada Disember](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2023-10/41698213489_MinyakSawitMalays.jpg)
Stok minyak sawit Malaysia susut 4.64 peratus kepada 2.29 juta tan pada Disember
Inventori minyak sawit mentah (MSM) berkurangan 9.43 peratus kepada 1.20 juta tan bulan lepas daripada 1.32 juta tan pada November.
![MPOB perlu jadi penanda aras global dalam penyelidikan minyak sawit - Johari MPOB perlu jadi penanda aras global dalam penyelidikan minyak sawit - Johari](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-01/61704722163_MalaysianPalmOilB.jpg)
MPOB perlu jadi penanda aras global dalam penyelidikan minyak sawit - Johari
Johari menekankan kepentingan sektor perladangan bekerjasama dengan MPOB dengan memanfaatkan peluang bagi mengetengahkan hasil penyelidikan.
![MPOB terus tingkat R&D untuk kembang produk sawit ke pasaran China dan negara Islam - Fadillah MPOB terus tingkat R&D untuk kembang produk sawit ke pasaran China dan negara Islam - Fadillah](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2023-11/81699878212_TBPORTSIM.jpg)
MPOB terus tingkat R&D untuk kembang produk sawit ke pasaran China dan negara Islam - Fadillah
Datuk Seri Fadillah Yusof berkata setakat ini terdapat beberapa produk yang sedang dikomersialkan di China hasil daripada usaha Institut Penyelidikan dan Perkhidmatan Teknikal Sawit MPOB (PORTSIM).