The Malaysian oil palm industry in 2019 has shown a better performance as compared to that of in 2018. Improvements witnessed in key performance indicators, namely crude palm oil production, exports and palm oil stocks. Overall, CPO production, exports and imports of palm oil increased while palm oil stocks, CPO prices and total export earnings of oil palm products declined. Meanwhile, yield of fresh fruit bunches (FFB) witnessed a marginal increase.
The Malaysian oil palm industry faced a challenging performance in 2018, as compared to the achievement in 2017. Crude palm oil (CPO) production, exports of palm oil, CPO prices and total palm oil export earnings declined, while that of imports and closing palm oil stocks showed a significant increase. Meanwhile, yield of fresh fruit bunches (FFB) witnessed a significant decrease due to biological effect after experiencing high yield in 2017, coupled with the unpredictable rainy season, which affected harvesting.
The Malaysian oil palm industry showed stirling performance in 2017. Crude palm oil (CPO) production and fresh fruit bunch (FFB) yield witnessed significant increases following recovery from the impact of the El-Nino phenomenon a year earlier. According to the Department of Statistics, Malaysia, higher palm oil prices and improved export demand helped push export earnings to RM77.85 billion, up from RM67.92 billion in 2016.
Prolonged dry weather conditions and below average rainfall brought about by the El-Nino weather phenomena during the second half of 2015 and into the first half of 2016 had impacted the Malaysian oil palm industry performance in 2016. The year 2016 saw crude palm oil (CPO) production declined by double-digit, which drew down palm oil stocks and pushed up palm oil prices. High palm oil prices had influenced exports to major markets as the discount of CPO to soyabean oil narrowed. Average CPO price in 2016 was higher by 23.2% to reach RM2,653.00 per tonne. Higher palm oil prices also helped to increase the export revenue by 7.3% to RM64.58 billion from RM60.17 billion in 2015.
The year 2015 saw mixed performance of the Malaysian oil palm industry. Oil palm planted area, crude palm oil (CPO) production, import, export and closing stocks increased, while that of prices and export revenue declined. Average CPO price was down by 9.6% to RM2,153.50 compared to RM2,383.50 in 2014.
The year 2014 saw mixed performance of the Malaysian oil palm industry. Crude Palm Oil (CPO) production, closing stocks and export revenue increased while export volume and imports declined. Average CPO price was marginally higher by 0.5% at RM2,383.50 compared to RM2.371.00 in 2013.
The year 2013 saw mixed performance of the Malaysian oil palm industry. Crude Palm Oil (CPO) production and export demand increased while imports were low throughout the year. The average price of CPO although lower than the previous year, was on an uptrend from a low of RM2,221 in January 2013 to close at RM2,574.50 in December 2013.
The year 2012 has been a challenging year for the Malaysian oil palm industry. During the first half of the year, the industry was faced with lower Crude Palm Oil (CPO) production compared to corresponding period of 2011 as Fresh Fruit Bunch (FFB) yielded low due to stress on the trees after experiencing high FFB production in 2011, as well as high imports of palm oil. In the second half of the year, palm oil prices declined as palm oil stocks build-up arising from high carry-over stocks in the beginning of the year, increase CPO production as well as weaker export demand.