Palm oil production in Colombia will increase this year to 1. 65 million tonnes, 10% more than last year due to increased production, said the president of the producers’ association.
Colombia is the world’s fourth largest manufacturer of oil (used in food, cosmetics and biofuels) Indonesia, Malaysia and Thailand.
Production in the first part of the year has already increased by 8% to 953,000 tonnes due to the harvesting of crops planted in recent years and the increase in the labor force, said Jens Mesa, president of the National Federation of Oil Palm Producers. .
“This puts us on the path of recovery, once again, from what we had last year when production contracted, and somehow made up for what we lost in price,” Mesa said. Production fell by 6% in 2019.
Producers have been forced to cut costs in an attempt to counteract a decrease in intake amid quarantine measures imposed to involve coronavirus, farmers have been exempt from blockade.
Biofuel intake has been affected by transport closures.
Consumption in hotels, restaurants and schools in Colombia was close to 0 for more than five months, but higher consumption in homes partially made up for the fall, Mesa said.
“In export markets, we see the same situation, so we sacrificed value in the first part of the year a way to move local exports and sales,” Mesa said. “And by surprise . . . we’ve noticed a slight recovery non-stop. . “
Sales of Colombian palm oil reached about $1 billion last year, part of which was exports.
Europe is the destination for about 60% of Colombia’s exports, but plans to limit palm oil purchases for environmental reasons can have a negative impact,” Mesa said.