Malaysia palm oil output to meet forecast despite monsoon season, says SD Guthrie

[KUALA LUMPUR] The arrival of the monsoon season has raised concerns about potential disruptions to Malaysian palm oil production over the next two months, but weather patterns have not impacted harvesting, one of the world’s largest palm oil producers SD Guthrie said on Tuesday (Nov 18).

Rain has been pouring in the early morning and evening but it has not affected harvesting, deputy managing director Mohd Haris Mohd Arshad said during an interview on the sidelines of the Malaysian Palm Oil Board (MPOB) conference.

The Malaysian Meteorological Department last week said the northeast monsoon is expected to continue through to March 2026, which could result in flooding near rivers and low-lying areas.

Mohd Haris believed production will be as “per planned without much disruption,” saying total production for the year will likely be around MPOB’s forecast of 19.5 million metric tons.

In October, production rose 11.02 per cent month-on-month to 2.04 million tons, its highest in a decade, according to the industry regulator. Reuters reported that output could surpass 20 million metric tons for the first time in 2025.

Meanwhile, on the land seizure affecting palm oil producers in Indonesia, Mohd Haris said they were still speaking with the authorities on the way forward.

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SD Guthrie in August said less than 3 per cent of its total planted area in the country was affected, emphasising that they have not contravened any law.

Indonesian authorities had cracked down on plantations allegedly operating illegally in designated forest areas, with around 3.7 million hectares (9.1 million acres) of plantations seized.

Mohd Haris is expected to take over as managing director in January next year, replacing Mohamad Helmy Othman Basha who resigned. REUTERS