Less CPO exports predicted this year

JAKARTA (JP): Total crude palm oil (CPO) exports will be lower than projected this year, says the Ministry of Agriculture's Joint Marketing Board, which markets the produce of state plantation firms.

One of the board's executives, who requested anonymity, said yesterday that increased domestic demand and less output had forced the board to cut its projected CPO exports from state- owned firm's from 30 percent to about 26 percent of their output.

Indonesia produces between 4.5 million and 4.6 million tons of CPO a year. State-owned plantation companies produce about 1.8 million tons a year.

At least nine of the 14 state-owned plantation firms, namely PT Perkebunan Nusantara I to PT Perkebunan Nusantara XIV, have oil palm plantations which produce CPO.

The board markets most state-owned plantation commodities, except coffee and tea which the firms market.

Based on the board's estimates, 720,000 tons or 40 percent of the 1.8 million tons of CPO produced by state firms this year were produced in the first half of 1996. The board expects the firms will produce 1.08 million tons in the second half of the year.

The board estimates that from January to June this year, 504,000 tons of CPO (70 percent of the 720,000 tons produced in the period) were sold on the domestic market, while 216,000 tons (30 percent) were exported.

On average, 84,000 tons a month were sold domestically and 36,000 tons were exported.

The board projects that in the second half of 1996, 756,000 tons of CPO (70 percent of projected output) will be sold domestically and 324,000 tons (30 percent) will be exported.

About 126,000 tons are expected to be sold domestically each month and 54,000 tons are expected to be exported.

"Observing the recent trend, though, it seems that only 26 percent of the CPO can be exported, instead of the planned 30 percent," the executive told The Jakarta Post yesterday.

If so, less than 54,000 tons would be exported each month.

He acknowledged the drop was not only caused by rising domestic demand, but by bad weather which had cut the state plantations' output by between 5 percent and 20 percent.

The executive said the Joint Marketing Board had planned to export two shipments in September, under a contract signed in June: "Prices were favorable in June, so we decided to ship 100,000 tons in September."

But because the board cannot export more than 54,000 tons a month, one of the shipments was delayed until October. (pwn)