This week, let us take a look at the impact COVID-19 has had on the palm oil plantation sector. Indonesia’s palm oil export volume has dropped, and prices are also falling.
While low export volumes and prices are a disincentive for growers to clear land and expand plantations, some experts argue that with smaller growers having lower margins, they might still see the need to continue clearing land and resorting to slash and burn practices as a cost-saving measure.
In addition, if the COVID-19 crisis persists, there is a chance that large firms will reduce funding for areas not directly related to production, including fire prevention efforts and public education via community outreach. For the full analysis, download the full report here.
