Insight Focus
- Guatemala has nearly doubled its palm oil production and exports since 2015.
- Guatemala has the highest palm oil yields in the world.
- Palm oil shouldn’t take land acreage from sugar.
While Indonesia, Malaysia, and Thailand have traditionally dominated the global palm oil market, Guatemala has emerged has a player in this industry in the Latin America region. Guatemala is the largest exporter in Latin America (third in the world) and the second largest producer of palm oil.
Palm oil production in Guatemala has increased strongly in the last few years. Since 2015, both production and exports have almost doubled. The increase in palm oil production in Guatemala has not caused for sustainability to be sacrificed. Guatemala is the largest producer of certified sustainable palm oil in Latin America. 60% of the palm oil produced in Guatemala is Roundtable on Sustainable Palm Oil certified (RSPO certified).
Guatemala mainly exports its palm oil to Europe, primarily to the Netherlands. Palm oil is exported extensively from Guatemala to Europe since it covered in the Association Agreement between the European Union and Central America. Guatemala also exports some of its palm oil to Mexico and to its neighbouring countries in Central America.
Guatemala has been able to increase its palm oil production and exports through high efficiency in its farming methods. Guatemala’s Palm Oil industry produces the highest yields in the world. According to a Guatemalan palm farmer the country’s yield are high due to,” Excellent genetics, good selection criteria in nursery, good nutrition, excellent solar radiation and good rainfall distribution.”
Will Palm Oil take Land Acreage from Cane?
Currently palm oil has the fourth largest crop acreage in Guatemala. With high yields and even higher prices, one can expect palm oil land acreages in Guatemala to increase in the future.
Around 80% of Guatemala’s palm oil production is in the northern or northeastern part of the country. The remaining 20% of the production in the southern part of the country are in the southern part of the country.
Source: DREPALMA
While in the other hand, most of the cane production in Guatemala is in the southern part of the country.
Due to opposite geographic regions, we do not expect palm oil to take away any acreage from sugar soon.
