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Crude palm oil production may decline by up to 2 million metric tonnes in 2026 compared with 2025, according to the head of the country’s palm oil producers association.
The expected decline is linked to drier weather associated with El Niño and higher fertilizer prices. Industry representatives are concerned that smallholders may reduce or delay fertilizer use because of rising costs.
Weather officials have warned that the country may experience a longer and harsher dry season in 2026, increasing the risk of drought and pressure on palm oil output.
Some growers have started using organic fertilizers to reduce costs after prices of certain fertilizers increased sharply.
The country produced 51.66 million tonnes of crude palm oil in 2025, up 7.3% year-on-year, according to industry data.
Source: The Edge Malaysia