Anglo-Eastern Plantations sees growth in palm oil production

LONDON - Anglo-Eastern Plantations Plc (AEP) has reported an increase in palm oil production and prices for the first five months of 2025, according to a recent trading statement. The London-based agricultural company, which specializes in the cultivation and production of palm oil, has seen a significant uptick in both its own Fresh Fruit Bunches (FFB) production and external FFB purchases, leading to a 14% rise in Crude Palm Oil (CPO) production compared to the same period last year.

The company’s own FFB production rose by 8% to 433,500 metric tons, while external FFB purchases surged by 34% to 492,000 metric tons. This growth has been attributed to higher output across all regions, with particularly strong contributions from newly matured areas and improved yields. However, a decline in supply from Kalimantan was noted due to a key supplier starting its own milling operations.

The average ex-mill price of palm oil also increased by 17%, reaching $878 per metric ton, reflecting a favorable market for palm oil producers. Despite a recent dip in CPO ex-Rotterdam prices, which stood at $1,095 per metric ton as of June 3, down 20% from the beginning of the year, Anglo-Eastern remains optimistic about the short-term demand outlook. The reduction of import duties on vegetable oils by India and Indonesia’s B40 biodiesel mandate are expected to bolster demand.

In terms of development, Anglo-Eastern has continued its planting and replanting initiatives, with new planting across 48 hectares and replanting over 517 hectares. The company aims to replant approximately 10,000 hectares over the next five years. Construction for an 8th mill at the KAP Estate in Kalimantan is underway, with completion expected in October 2025 and commissioning scheduled for December 2026.

Anglo-Eastern’s confidence in the long-term demand for CPO is reflected in their expectation of satisfactory financial performance for the remainder of the year. The company maintains its full-year FFB production growth target at about 10% above last year’s output.

This information is based on a press release statement from Anglo-Eastern Plantations Plc.

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