CPO Auction Result
The year 2008 was an “extraordinary” year for the oil palm industry. Extraordinary, since it was in 2008 that CPO recorded its highest price throughout history.Referring to Rotterdam CIF price, CPO price achieved over USD 1,200/ton.Unfortunately, the global economic crisis brought with it a drastic declinein demand for CPO in the fourth quarter of 2008. As a result,global CPO price dropped sharply, almost touching its lowest price belowUSD 500/ton. On the other hand, the increase in global oil price occurringsince 2007 was the major cause of the significant rise in fertilizer price,resulting in a relatively high escalation of the Company’s operational costs in 2008.