2021 Production costs for benckmark plantations in Colombian oil palm sector

This paper presents the results from a study undertaken to estimate 2021 production costs of the Colombian oil palm companies that are considered as benchmark because of their technology adoption. Regarding the methodological approach, 2021 costs were estimated by considering the price variation from year 2020 to 2021 resulting from the Colombian Oil Palm Costs Index (ICPA). Additionally, one gathered information on yields attained by benchmark companies in 2021 that had participated at the 2020 costs study, oil extraction rates (OER) from benchmark mills and fresh fruit bunches processing costs at the mill. Our results indicate that in 2021 the Colombian oil palm companies faced a unit cost increase compared to year 2020, mostly due to the growth in price fertilizers and the decrease on OxG crops from the Eastern Zone. At crops planted with E. guineensis cultivars, unit costs were estimated in COP 324,272 per-ton of FFB (increase of 9% with respect to year 2020), while the unit cost at crops planted with OxG hybrids cultivars was COP 343,322 (increase of 17% with respect to year 2020). Finally, the crude palm oil unit cost was estimated in COP 1.52 million per metric tonne for E. guineensis and $1,82 million per metric tonne for OxG hybrids.