Indonesia is expected to reduce palm oil production by 2.9% in 2027, says GAPKI.

Indonesia's palm oil production is expected to decline by 2.9% in 2027, to 56.8 million tons, due to the prolonged effects of dry weather on plantation maintenance, the Indonesian Palm Oil Association (GAPKI) reported on Wednesday (2). According to the association's secretary-general, Hadi Sugeng, many companies have halted fertilizer application due to adverse weather conditions. "Due to the dry weather, many companies have stopped fertilizing, because even if we applied fertilizer, it would be a waste, as it would evaporate," he told Reuters. In addition to the weather, rising costs are also weighing on the sector. According to Sugeng, fertilizer prices rose 30% in the second half of this year, pressured by the impacts of the war in the Middle East. GAPKI also revised its 2026 production estimate downwards, from 58.8 million to 58.5 million tons, after dry weather delayed fruit ripening. Even with the revision, this year's production is expected to be 3.4% higher than the 56.55 million tons recorded in 2025, supported by the entry into production of replanted areas and new plantations.

This text was translated by machine from Brazilian Portuguese.