PUTRAJAYA: The crude palm oil (CPO) price is expected to average at RM3,800 per tonne in 2022 on improved palm oil production, in line with the performance of other major vegetable oils prices amid the recovery in production and stock, the Malaysian Palm Oil Board (MPOB) said.
Director-general Datuk Dr Ahmad Parveez Ghulam Kadir said CPO production is expected to improve 4.9% this year to 19 million tonnes from 18.12 million tonnes recorded in 2021, while stocks are projected to pick up 23.4% to 1.95 million tonnes versus 1.58 million tonnes last year.
“We foresee exports to increase 9.3% to 17 million tonnes this year from 15.56 million tonnes previously,” he said during a presentation at the one-day Palm Oil Economic Review and Outlook Seminar (R&O) 2022 organised by MPOB today.
Ahmad Parveez emphasised that the year 2022 is expected to bring a brighter prospect for the Malaysian palm oil industry with all key industry indicators projected to show a better performance.
Export revenue, however, is expected to fall to RM95 billion compared with RM106.5 billion.
He highlighted that the industry experienced a mixed performance last year wherein the slowdown in CPO production had limited the capacity for the country to export the commodity and other palm-based products despite stable demand from importing countries. – Bernama