06 March 2013 10:00 [Source: ICIS news]
KUALA LUMPUR (ICIS)--Indonesia is expected to produce 28m tonnes of palm oil this year, accounting for about half of the global output, an industry executive said on Wednesday.
About a third of the country’s total palm oil production or more than 9m tonnes will be sold to the domestic market, while the bulk or roughly 19m would be exported, Indonesian Palm Oil Board chairman Derom Bangun said at the 2013 Palm & Lauric Oils Conference in Kuala Lumpur.
Of projected export volume, 6m tonnes will be crude palm oil (CPO), he said.
The bulk of palm oil for the domestic market or 5.7m tonnes would go into the food industry, while 3.5m tonnes would go into the manufacture of biodiesel, he said.
Bangun said that global demand for palm oil will slightly exceed supply this year as he projects prices to fluctuate in the range of $845-870/tonne (€651-670/tonne) CIF (cost, insurance and freight) Rotterdam in the near term.
He said that Indonesia is working with Malaysia in promoting sustainable palm oil production, in view of recent challenges that include an ongoing campaign in Europe against palm oil.
The 2013 Palm & Lauric Oils Conference in Kuala Lumpur runs from 4-6 March.
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