What is the expected average price of crude palm oil per tonne for 2022?

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Crude Palm Oil Price Projected to Average RM4,250 per Tonne in 2022

The Ministry of Plantation Industries and Commodities (MPIC) has projected that the average price of crude palm oil (CPO) for 2022 will be RM4,250 per tonne. This projection is part of a broader forecast that anticipates palm oil export revenue to increase to RM72.25 billion for the year, a rise from the RM64.62 billion recorded in 2021. The ministry also anticipates a total production of 19 million tonnes of palm oil.
CPO Price Forecast Amidst Industry Challenges

The anticipated average CPO price of RM4,250 per tonne for 2022 is set against a backdrop of significant challenges within the plantation sector. Notably, the industry has been grappling with a severe labour shortage, particularly among foreign workers. This shortage led to substantial losses in 2021, estimated at RM21 billion, and is projected to continue with RM28 billion in losses for 2022 if the issue is not addressed promptly.
Impact of Labour Shortage on Production

The scarcity of harvesters has had a direct impact on Malaysia's palm oil production capabilities. The Malaysian Productivity Corporation (MPC) highlighted the RM21 billion loss incurred in 2021 due to this deficit. Without immediate intervention to bring in foreign workers, the sector faces the prospect of further financial setbacks amounting to RM28 billion in 2022, underscoring the critical need for a stable labour supply to meet production targets.
Export Revenue Growth Expected

Despite the operational challenges, the Malaysian palm oil industry is expected to see a considerable increase in its export revenue for 2022. The MPIC forecasts this revenue to reach RM72.25 billion, marking an 11.8 per cent growth compared to the RM64.62 billion achieved in 2021. This optimistic outlook for revenue is supported by the projected average CPO price and an anticipated production volume of 19 million tonnes.

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What is the expected average price of crude palm oil per tonne for 2022?

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