From sapling to fruit

THE average life span of a palm tree is 25 years and it produces fruit typically from age three onwards. By age seven to 18, the tree hits peak production, producing around 25 tonnes of fresh fruit bunches (FFB) per hectare a year. One tonne of FFB produces about 200kg of crude palm oil (CPO) and 230kg of crude palm kernel oil (CPKO).

Palm trees flourish in tropical warm weather, where there is plenty of rain and sunshine all year round. If however, the weather changes, supply is affected. A weather phenomenon of particular influence is El Niño, a prolonged dry weather event in the Western Pacific region (including Indonesia and Malaysia) that occurs once every four to six years.

According to Ling Ah Hong, director of Malaysian plantation consultancy and investment company Ganling, any El Nino effect on palm oil is only felt at least six months to a year later. The most recent 2009/2010 event reduced palm oil yield by about six per cent, he said to an El Nino conference organised in June this yearby the Malaysian Palm…