Economic Production Costs for the Fruit of Oil Palms and Crude Palm Oil in 2016: Estimation in a Group of Colombian Producers
The goal of this research was to estimate the costs of production for Colombian oil palm crops and Colombian crude palm oil during 2016. Production costs were estimated from a group of 38 oil palm fruit producers representing 108,949 hectares, which, in turn, stand for 21.3 % of the total area planted with oil palms in Colombia by 2016. As for the extraction costs, information was gathered from a group of 12 Colombian palm oil mills representing 31 % of the total palm oil produced in Colombia in 2016 (i.e. 1,146,203 t). Firms participating in this study show high levels of technology adoption. Regarding the methodology implemented in order to estimate production costs, we used the approach proposed by Fedepalma and Cenipalma in recent studies. By using the aforementioned methodology we guarantee results are comparable with those from previous studies. Our results indicate that in order to establish a hectare with oil palms and to provide proper care for the crop during its unproductive stage, a grower must assume costs up to cop 18.8 million for E. guineensis cultivars and cop 21 million for E. oleifera x E. guineensis (OxG). It must be noted that eradicating a hectare of oil palms for crop renewal represented costs between cop 1.2 and 1.9 million. In the case of costs per ton of fresh fruit bunches (FFB) (i.e. unit cost), estimated costs of cop 267,278/t FFB and 240,041/t FFB were obtained for E. guineensis and OxG crops, respectively. Note that unit cost for OxG were estimated for the Colombian Eastern Zone, which is the only region where these cultivars have reached the mature stage and been at the fields for more than 17 years. Additionally, production costs for a ton of crude palm oil (CPO) were estimated at cop 1,517,665/t CPO for E. guineensis and cop 1,399,524/t CPO for OxG.
| Main Authors: | , , , , , |
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| Format: | Digital revista |
| Language: | spa |
| Published: |
Fedepalma
2019
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| Online Access: | https://publicaciones.fedepalma.org/index.php/palmas/article/view/12596 |
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| Summary: | The goal of this research was to estimate the costs of production for Colombian oil palm crops and Colombian crude palm oil during 2016. Production costs were estimated from a group of 38 oil palm fruit producers representing 108,949 hectares, which, in turn, stand for 21.3 % of the total area planted with oil palms in Colombia by 2016. As for the extraction costs, information was gathered from a group of 12 Colombian palm oil mills representing 31 % of the total palm oil produced in Colombia in 2016 (i.e. 1,146,203 t). Firms participating in this study show high levels of technology adoption. Regarding the methodology implemented in order to estimate production costs, we used the approach proposed by Fedepalma and Cenipalma in recent studies. By using the aforementioned methodology we guarantee results are comparable with those from previous studies.
Our results indicate that in order to establish a hectare with oil palms and to provide proper care for the crop during its unproductive stage, a grower must assume costs up to cop 18.8 million for E. guineensis cultivars and cop 21 million for E. oleifera x E. guineensis (OxG). It must be noted that eradicating a hectare of oil palms for crop renewal represented costs between cop 1.2 and 1.9 million.
In the case of costs per ton of fresh fruit bunches (FFB) (i.e. unit cost), estimated costs of cop 267,278/t FFB and 240,041/t FFB were obtained for E. guineensis and OxG crops, respectively. Note that unit cost for OxG were estimated for the Colombian Eastern Zone, which is the only region where these cultivars have reached the mature stage and been at the fields for more than 17 years. Additionally, production costs for a ton of crude palm oil (CPO) were estimated at cop 1,517,665/t CPO for E. guineensis and cop 1,399,524/t CPO for OxG. |
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