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 Laprensa.hn 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.

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