Malaysia

"Oil palm trees will not reach their full potential due to inadequate fertilizer inputs and labor shortages over the past three years," he said, "and even if you have the money, you can't buy certain types of fertilizers."

Palm oil production this year may fall short of expectations

Malaysia's Minister of Plantations and Commodities Zuraida Kamaruddin said last month that palm oil production will rebound to 23 million to 25 million tons this year from a five-year low of 18.1 million tons in 2021.

And Ong now estimates that palm oil production this year will be below 19 million tons. The Malaysian Palm Oil Association expects even lower production of 18.5 million to 18.7 million tons.

Oil palm trees need a steady supply of nutrients and minerals to grow. A poorly fertilized palm tree may produce fruit that weighs only 15 to 18 kilograms, while a healthy palm tree can produce fruit that weighs 25 to 30 kilograms, Ong said.