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11 Largest Palm Oil Producing Countries in the World, Indonesia Ranked 1st

Translator

Najla Nur Fauziyah

Editor

Laila Afifa

24 April 2024 21:41 WIB

Illustration of oil palm plantation. shutterstock

TEMPO.CO, Jakarta Crude palm oil (CPO) is widely used for daily necessities, from cakes to cosmetics. Palm oil comes from oil palm trees that grow in tropical climates. Palm oil was originally discovered in West Africa but is currently widely cultivated in Asia, Africa, and Latin America. 

In December 2022, the United States Department of Agriculture (USDA) estimated global palm oil production of about 77.22 million tons in the 2022/2023 period, an increase of 3.39 million tons compared to the previous year. Of this amount, Indonesia contributed 45.5 million tons of palm oil, or around 59 percent of the global rate. Apart from Indonesia, several other countries also produce palm oil in large quantities. So, which countries were considered the world's largest palm oil producers in 2023? Check out the information below.

1. Indonesia

Indonesia produces 59 percent of the world's total palm oil production or 45.5 million tons per year. According to Statistics Indonesia (BPS), Indonesia exported 25.01 million tons of CPO and its derivative products in 2022. The main export destinations for Indonesian palm oil products are the European Union, India, Pakistan, and Africa.

2. Malaysia

Malaysia is the second largest palm oil producer in the world. Malaysia produces about 19.3 million tons of palm oil each year or around 25 percent of the global production. The main importers of Malaysian palm oil are the European Union, Pakistan, China, and the United States.

3. Thailand

The next largest palm oil-producing country in the world is Thailand. This country is responsible for around 3.45 million tons of palm oil or around 4.4 percent of global production. To increase palm oil productivity, Thailand is developing an oil palm plantation industry program over the next 10 years. Most palm oil producers in Thailand come from small-scale farmers.

4. Colombia

Colombia is a tropical country in South America that is considered the fourth largest producer of palm oil in the world. Since 2018, Colombia has joined the Council of Palm Oil Producing Countries (CPOPC). This country produces 1.8 million tons of palm oil every year or around  2.3 percent of the global rate.

5. Nigeria

The next largest palm oil-producing country in the world is Nigeria, which produces around 1.4 million tons of palm oil products each year. Nigeria was the third-largest palm oil-producing country in the world in 1996-2003, beating Thailand. However, in the following years, Thailand succeeded in increasing its palm oil production.

6. Guatemala

Guatemala is capable of producing 920,000 tons of palm oil per year. The palm oil industry in Guatemala has been developing rapidly.

7. Papua New Guinea

This neighboring country of Indonesia is responsible for producing 800,000 of palm oil every year. Even though the oil palm plantation in New Guinea is comparatively small, roughly 130,000 hectares to Indonesia’s 16.8 million, this country is set to become one of the largest palm oil producers in the world.

8. Ivory Coast

Ivory Coast or Cote d'Ivoire in French is a country located in West Africa. Apart from being one of the largest chocolate-producing countries in the world, Ivory Coast is also one of the largest palm oil producers. This country can produce up to 600,000 tons of palm oil every year. Ivory Coast and Indonesia jointly opposed the anti-palm oil campaign in Europe in 2013.

9. Honduras

Honduras is capable of producing 595,000 tons of palm oil per year. This country received aid for palm oil seeds from Indonesia and Malaysia through CPOPC after being hit by a hurricane in 2020.

10. Brazil

This country occupies the top position as the largest palm oil producer in Latin America, with a total production of 585,000 tons per year. Several international companies depend on palm oil exports from Brazil, including Danone, Nestle, Unilever, PepsiCo, and Cargill.

11. Ecuador

Located in the northwest of the American continent, Ecuador produces over 480,000 tons of palm oil per year. About 85 percent of Ecuador's palm oil comes from the Costa region.

RIZKI DEWI | VIVIA AGARTA

Editor’s Choice: Minister: Indonesia Accounts for 54% of Global Palm Oil Export

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