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Anglo-Eastern Plantations PLC on Friday reported a lower production of fresh fruit bunches amid a decline in the price of crude palm oil due to lower demand caused by competition from sunflower and canola oil. The producer of palm oil and rubber across Indonesia and Malaysia said in the five months to May 31, it produced 420,300 metric tonnes of fresh fruit bunches, down 5.3% from 443,800mt a year prior. However, the output in Kalimantan with younger palms increased 4% annually, while the output at plantations with older plants fell between 9% and 20%. Anglo-Eastern said production in Bengkulu was affected by replanting activities which reduced matured areas by 1,675 hectares replanted from 2022 to May 2023. Further, output in Sumatera was lower due to seasonal variation and a shift in crop pattern. Rainfall levels were better except for plantations at Riau and Kalimantan. The company said the average crude palm oil ex-Rotterdam price as at May 31 plummeted 39% to $1,006 per metric tonne from $1,650 a year ago. It declined further to $890 as at June 2, down 16% from the end of May price. It said the falling price was due to lack of demand caused by vegetable oil stocks such as sunflower and canola oil. Looking ahead, Anglo-Eastern expects crude palm oil prices to further drop as production will be higher in the second half of the year. Anglo-Eastern Plantations fell 7.6% to 730.18 pence each on Friday morning in London. Copyright 2023 Alliance News Ltd. All Rights Reserved.
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