Palm oil price increases by 60pc

PALM oil prices have recovered to pre-pandemic levels and are currently at US$880 (K3,019.95) per metric tonne cost, insurance, and freight Rotterdam mark, according to New Britain Palm Oil Ltd (NBPOL).
Country manager Robert Nilkare told The National that the recovery was a significant source of foreign currency for the country and a critical source of income for the smallholders and employees.
He said that was a 60 per cent increase from the bottom of the market and significantly above the cost of production making oil palm a profitable crop for smallholders.
“The palm oil sector is currently very strong with demand for our products as food ingredients only slightly reduced in the face of significant reductions in supply,” he said. “As such prices have recovered to pre-pandemic levels and are a significant source of foreign currency for the country and a critical source of income for our smallholders and employees.”
While commenting on the company’s operations during the Covid-19 pandemic, Nilkare said NBPOL was working hard to protect its workforce from the coronavirus and had maintained several protocols even though national control measures had been relaxed.
“There have been a number of additional protocols that had to be implemented to ensure that the business has been able to continue as it is critical to the livelihoods of so many Papua New Guineans,” Nilkare said.
“2020 has been a good year for the business due to recovering prices and the strong management that believes in the future of agriculture in PNG.”
Commenting on NBPOL topping global ranking in sustainable and transparent oil palm production, Nilkare said: “It is very important to our customers in particular that they are using sustainably sourced palm oil that is supporting the development of Papua New Guinea.”