The Palm Oil Producing Countries Council (CPOPC) has forecast that palm oil prices could reach between 4,000 and 5,000 ringgit ($904-1130) per tonne in 2025, driven by stagnant production in key markets, especially Indonesia and Malaysia.

“As global demand for palm oil is increasing, stagnant production is likely to lead to a supply shortage, which in turn will lead to higher prices,” CPOPC deputy secretary-general Datuk Naguib Wahab said in Bernama on Friday, The Star reported him as saying.

He noted that the current price level of around 5,000 ringgit ($1,129.9) per tonne could be temporary, largely due to the ongoing floods in Malaysia, which have increased optimism in the market. Naguib also emphasized that stagnant production, exacerbated by aging plantations, unpredictable weather and limited expansion of new plantings, is expected to strain the global supply market, further pushing prices up.

CPOPC is an intergovernmental organization established on November 21, 2015, dedicated to promoting cooperation among palm oil producing countries. The council currently includes Malaysia, Indonesia, Honduras and Papua New Guinea as full members, and Colombia, Ghana, Nigeria and the Democratic Republic of Congo as observers.

Efforts are underway to bring Thailand, the world’s third largest palm oil producer, into the organization. If successful, member countries will control 93-95% of the world’s palm oil production, significantly increasing their influence in the market.