Palm Oil: Emergency Is Declared for Low Prices

Palm oil producers in Honduras declared a national emergency because of the crisis caused by the sharp drop in international prices.

Tuesday, July 2, 2019

In a statement issued by the National Federation of Associations of Palm Oil Producers and Extractors of Honduras (FENAPALMAH) and the Industrial Association of Palm Oil Producers of Honduras (AIPAH), it is considered that "... the crisis caused by the drastic fall in international palm oil prices that impacts more than 18,000 producers of palm fruit and extracting plants located on the Atlantic coast of the country, with the palm sector being the second generator of foreign exchange."

In the document the businessmen declare "National Emergency in the Honduran Palm Sector" and make a call to the government presided over by Juan Orlando Hernández and to the National Financial System to seek a consensual and sustainable solution, in order to avoid the loss of the patrimony of the producers and therefore not generate a social crisis with severe consequences.

See "Palm Oil: Exports Up to September 2018

Héctor Castro, president of AIPAH, explained to that "... palm oil prices have been progressively deteriorating in the market, to the extent that they no longer produce enough income for producers to meet their financial obligations."

Castro added that "... Producers need fresh financial resources to maintain their farms, some of which have not even been able to fertilize their soils."

According to reports from CentralAmericaData, after the average price of Central American palm oil exports rose 37% between February 2016 and March 2017, from $0.54 per kilo to $0.74 per kilo, this trend was reversed, falling from $0.70 per kilo registered in April 2017 to $0.54 per kilo in September 2018.

¿Busca soluciones de inteligencia comercial para su empresa?

Do you need more information about your business sector?

Request more information:

this site is protected by reCAPTCHA and Google's privacy policy and terms of service.
Need assistance? Contact us
(506) 4001-6423

More on this topic

Palm Oil: Pessimism in Honduras

November 2019

Honduran palm growers do not see improvements in their business in the short term, since they foresee that during 2020 international oil prices will remain low.

Some time ago, businessmen of the sector have been alerting of the crisis they are suffering, because in the first days of July of this year the National Federation of Associations of Oil Palm Producers and Extractors of Honduras (FENAPALMAH) and the Industrial Association of Palm Oil Producers of Honduras (AIPAH), declared themselves in national emergency.

Honduras: Law for the Palm Sector

September 2019

A bill is being discussed in Congress to facilitate financing for producers and to support them in certifying the quality of their plantations.

Because of the complex scenario faced by African palm producers because of low international prices, the Hernandez administration presented to Congress the bill "Law for the Strengthening of the Productive Sector of Oil Palm."

Honduras: Good Figures for Palm Oil

April 2018

For the present harvest, the sector's union forecasts an increase of between 8 and 9% in sales abroad, which would generate $400 million in revenues.

According to figures from the Industrial Association of Oil Producers of Honduras (Aipah), in the previous cycle the country exported 469 thousand tons, which generated $364 million and the main destination market was Europe, which acquired 85% of the total. In this harvest it is expected that about 515 thousand tons will be to exported.

Malaysian Investments in Honduran Palm

March 2013

The sustained growth of oil palm crops has caused demand for more industrialization plants, that will be financed with a loan of $100 million from the Malaysian government.

According to Hector Castro, president of the National Federation of Honduran Palm Producers (Fenapalma) a meeting was recently held with representatives of the Government and executives from Banco Hondureño para la Producción y Vivienda (Banhprovi), in order to promote and encourage the development of this industry.