Financial Times FT.com

Falling prices leave palm oil producers struggling to survive

By John Aglionby in Jambi province

Published: November 1 2008 02:00 | Last updated: November 1 2008 02:00

Plummeting prices forced Asnawi to close his three-year-old oil palm fruit transportation business in the Indonesian province of Jambi two weeks ago.

"In August, the [palm oil] factories were paying me Rp1,800 ($0.16, €0.13, £0.10) a kilogramme of fresh fruit, which was four times my costs," he said. "By the middle of October we were only getting Rp625 a kilogramme. The margin was so thin, I decided it wasn't worth the risk."

You have viewed your allowance of free articles. If you wish to view more, click the button below.

Read this