21/02/2009 (Solomon Star News) - PALM oil production bounced back in December of last year after recording slow movements.

The Central Bank of Solomon Islands (CBSI) through its monthly economic bulletin revealed this.

"Palm oil production in December rose significantly after three consecutive months of slow movements.  It recorded a 20% rise in all production beginning with fresh fruit bunch yield totaling 8,507 tons, despite marginal decline in out grower contributions," the bank said.

It adds that crude palm oil (CPO) was up by 19% to 1,883 tons to further the slight increase seen in November. While Palm Kernel extract rose 18% to 504 tons from 426 tons.

Palm kernel oil, which receives a higher price than CPO, reported a 19% growth to 222 tons while kernel meal production rose from 219 tons to 262 tons.

Year to date production grew dramatically by 28% from 17,152 tons in 2007 to 21,981 tons.

The international price of palm oil price grew 5% in December to US$503 per ton (SBD$3950); this reverses the downward trend in prices of the last 5 months 2008.

General Manager of Guadalcanal Plain Palm Oil Limited (GPPOL) Harry Brock early this year revealed that the current global financial crisis also have an impact on their exports.

Late last year buying price of palm oil bunch from GPPOL to out-growers also dropped.