"The increase will make the Indonesian palm oil production reached an estimated of 26.5 million tons next year," said Dorab Mistry from Godrej International Ltd., when he was asked to be the speaker in the discussion on palm oil price predictions during the Conference of the Association of Indonesian Palm Oil Associates (Gapki) in Nusa Dua, Friday (2 / 12).
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| CPO production |
"I expect that Malaysia’s next year production capacity will not differ from this year, i.e. between 18.6 to 19 million tons," he said.
Dorab admitted, two world-renowned independent analysts estimate the same thing, the neighbor's CPO production will not increase.
However, according to him, the overall world oil production will only increase to 2 million tons.
Besides discussing the production capacity issue, Dorab said, that the production of other oils will continue to rise, such as soybean and sunflower oil.
"Regarding the price of soybean oil, will greatly depend on the extent of land plants in South America and the United States."
Meanwhile, Michael J Dwyer, an analyst from the United States Department of Agriculture (USDA), said the palm oil from Indonesia can come into the territory of the United States as long as the price can compete with animal oil or biodiesel.
"In addition, prior to the entry into the U.S. market, (the company) must first meet the requirements and have appropriate certificates," he said.
He explained the production of biodiesel in Uncle Sam's country (the U.S.) is not too large compared to the countries in the European region.
Europe is the largest vegetable oil producer in the world, in which the production is 50 percent of the available existing oil or a total of 11 million tons.
"It shows that the United States is not a major player in oil production," he said.
However, Dwyer added, the oil production in 2012 will continue to increase, thus indicating if the super-power country can’t release its dependence on biodesel.
Source: Analisa, Medan
