# Small oil palm farmers face survival crisis in risk to future output

> Small oil palm farmers in Malaysia and Indonesia, which together produce 85% of global palm oil, are cutting fertiliser use and replanting because prices have fallen about 30% this year. Malaysia's biodiesel association estimates 2020 palm oil output will fall 10% to about 18 million tonnes. Fresh fruit bunch prices are around 330 ringgit a tonne.

- Date: 2020-05-20 · published 2020-05-20T12:00:00.000Z
- Category: market · region Malaysia · magnitude low
- Page: https://feedsoft.ai/events/53240-small-oil-palm-farmers-face-survival-crisis-in-risk-to-future-output
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md)

## Why it matters

Lower fertiliser application cuts yields six to twelve months later, which could tighten palm supply in 2021 and support prices once demand recovers.

## Read by commodity

- PALMOIL: bullish ▲

## Sources

- reuters.com: https://www.reuters.com/article/business/small-oil-palm-farmers-face-survival-crisis-in-risk-to-future-output-idUSKBN22W0MM/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.