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Palm Oil Prospects for 2005

Author

Listed:
  • Castaneda, Jaime
  • Giordano, Mark

Abstract

In the last two decades, palm oil has emerged as the most traded edible oil and a major component of global oil consumption and production. The increase in palm oil's importance is due primarily to changes in the economics underlying the highly complex edible oil market. In the coming decade, palm oil production, centered in Southeast Asia, will continue to expand rapidly, driven on the demand side by cost advantages over alternative oils and on the supply side by relative profitability over competing estate and other crops. The growth in palm oil production will not, however, decrease demand for U.S.-produced edible oils because of 1) the expected rapid income growth will boost edible oil demand, especially in the developing world and 2) the increased use of palm oil in oleochemical production.

Suggested Citation

  • Castaneda, Jaime & Giordano, Mark, 1995. "Palm Oil Prospects for 2005," Staff Reports 278788, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uerssr:278788
    DOI: 10.22004/ag.econ.278788
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