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POWERFUL WHEN BEING IN DRAUGHT23 May 2014 , 16:33 WIB | Read : 827 | By : Atep Yulianto Irawan
The drought in 2013 and in the first quarter 2014 has proved the negative effects to the performance of vegetable commodity production in the world, unless the production of CPO. The drought happening as if it was a proof for the power of palm oil in the world. As the one vegetable oil which has the highest production, palm oil re-proves to be the alternative vegetable oil which the people of the world want to utilize.
But, when other kinds of vegetable oil got the same thing because of drought, the vegetable oil demand also increased. CPO appeared as the savior of vegetable oil supplier when the other kinds of vegetable oil got more defisit. But before, there were lots of prediction that in 2014, the vegetable oil will be in the previous condition for the climate gets better. But the facts show, the drought did not stop but there came issue that El-nino storms will be. That is why, Director of Godrej International Limited, Dorab Mistry said, it needs to revise all predictions.
Dorab said, if the drought will come to an end in the second quarter 2014, and there will be normal rain, Malaysian CPO production in 2014 will be 19,7 millions of ton or it is higher 200 thousands of ton if it is compared to the previous year, which was 19,5 millions of ton. Meanwhile, Indonesian CPO in 2014 is estimated to be 30,5 millions of ton or it is higher 9% if it is compared to 2013 which was 27,7 millions of ton.