Palm oil production in Indonesia may decline, GAPKI says
In Ukraine, UkrAgroConsult reported that Indonesia’s crude palm oil production could fall by 2 million tons this year compared to 2025 levels due to dry weather associated with the El Niño phenomenon and high fertilizer prices caused by the war in the Middle East, according to Eddy Martono, head of the country’s palm oil producers’ association (GAPKI).
Martono noted that fertilizer prices have risen 30% since the outbreak of the war in the Middle East and expressed concern that smallholder farmers, who account for 37% of Indonesia’s oil palm plantations, may reduce or delay fertilizer use.
“If El Niño occurs, it will lead to a decline (in production), and if fertilizer is applied before the end of the semester, production could be reduced by 1-2 million tons,” he said. Indonesia’s meteorological agency predicts a longer and more severe dry season in 2026 compared to last year, increasing the likelihood of drought.
According to the GAPKI palm oil industry association, Indonesia will produce 51.66 million tons of crude palm oil in 2025, a 7.3% increase from the previous year.
Category: Food & Agriculture
