Less CPO exports predicted this year

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)