Indonesian palm oil producers concerned about increasing demand for biodiesel

In Indonesia, Chem Analyst reports the national palm oil association is concered about a potential conflict between food and fuel production if demand for biodiesel continues to expand. About 46% of last year’s production of 23.2 million metric tons went to fuel production while 44% went to food production, and the remaining to cosmestics and other uses. About 58% of last year’s production was exported, but the association is concerned that with increased fuel demand, exports will be hit. The country is embarking on a program to renew about 180,000 ha of palm oil plantations, subsidizing about $3,800 per hectare.