November 25, 2004



Malaysia 2005 Palm Oil Output Seen Around 13.8 Million MT


Malaysia's crude palm oil production for 2005 is estimated between 13.80 million to 13.85 million metric tons, up about 2% from 2004, according to M.R. Chandran, chief executive of the Malaysian Palm Oil Association.


The MPOA, a lobby group for Malaysia's palm oil producers, estimated 2004 production at 13.55 million tons.


Chandran said production growth in 2005 may only be moderate because of biological stress on oil palm trees in Malaysia after high production in recent years.


"If there is no El Nino, then we are looking at a (2005 production) figure of around 13.80 million to 13.85 million tons," he said.


He added if the El Nino weather phenomenon occurred, palm oil production may remain at 2004 levels.


There has been some concern in the industry recently about the potential of an El Nino, which causes dry weather conditions, developing in early 2005.

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