Malaysia is on Third Year of Palm Oil Losses on Labor Shortages

Palm oil output in Malaysia, the world’s second largest producer, is forecast to decline, or at best remain unchanged, from last year’s 18.1 million MT, according to planters and analysts, reports The Jakarta Post on September 08.  The culprit is persistent worker shortage, now on its third consecutive year.
Plantations in the country are facing their worst labor crisis since the industry began in 1917, with the arrivals of migrant workers that are the core of the industry’s labor force at a ‘snail’s pace,” the Malaysian Palm Oil Association’s (MPOA) Chief Executive Joseph Tek, told Reuters, despite the lifting of corona virus-related hiring restrictions.  A lack of skilled harvesters means companies cannot fully capitalize on the peak harvest season that spans August to November, forgoing a boost of growth from recent rains.