Worker shortage to hamper CPO output

Productivity at risk: Analysts say the improvement in the plantations’ productivity in Malaysia could be at risk in 2021, assuming the foreign labour policy in the country remain unchanged.

PETALING JAYA: A prolonged labour shortage in the oil palm plantations nationwide is expected to trigger a larger-than-expected drop in crude palm oil (CPO) output both this year and next year, say analysts.

The situation is reflected by the latest October statistics released by the Malaysian Palm Oil Board (MPOB) yesterday – with CPO production down by 7.8% to 1.72 million tonnes and palm oil stocks tumbling to its lowest since June 2017 to 1.57 million tonnes respectively.