PUTRAJAYA: IOI Corporation Bhd
expects its palm oil production to register single-digit growth in the financial year ending June 30, 2027 (FY2027), supported by higher fresh fruit bunch production and an improved oil extraction rate.
Group managing director and chief executive officer Datuk Lee Yeow Chor said the growth would also be driven by young mature plantations entering a more productive phase.
He said the group's Malaysian plantation operations had so far not been significantly affected by the El Niño phenomenon, as rainfall levels remained relatively normal.
"However, our Indonesian operations had faced challenges due to prolonged dry weather, with some areas in Kalimantan experiencing about three months without rain.
"Our production in Indonesia was affected by almost a double-digit percentage last month. The situation there was quite bad due to very dry weather and haze," he told a media conference after the company's Annual General Meeting (AGM) here today.
Lee said the impact of drought on palm oil production was usually prolonged, with the initial effects expected to emerge about six months after the onset of dry conditions, followed by another possible impact 15 to 18 months later.
Nevertheless, he said the impact on the group's overall production was expected to be limited, as its Indonesian plantations accounted for only about 12 per cent of its total plantation area. - Bernama
