Wednesday , December 2 2020

Malaysian ‘palm owners’ see $217m loss on virus

Bloomberg

The Malaysian Estate Owners Association says new virus-related restrictions on palm operations will cause potential losses of as much as 900 million ringgit ($217 million) a month to the oil palm sector in the state of Sabah.
If the entire oil palm supply chain in Sabah is constrained by a recent order to operate at 50% capacity, the state could see crude palm oil, or CPO, production falling by as much as 300,000 tonnes a month, MEOA said in a statement.
At prevailing CPO prices of close to 3,000 ringgit a ton, the estimated loss in revenue could be as much as 30 million ringgit a day, the association said. Palm kernel losses haven’t been factored in, it said.
Sabah is Malaysia’s largest palm oil producing state, accounting for 25% of the total national palm oil output.

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