Oil Palm Industry Economic Journal Vol. 16 (1) March 2016 p. 18-30

Climate Variability and its Impact on the Palm Oil Industry

Nur Nadia Kamil* and Syuhadatul Fatimah Omar*
Received:    Accepted:    Available Online:


Located between the Indian and Pacific Oceans, Malaysia is exposed to changes in climate variability, namely, the El Niño and La Niña phenomena. These two complex weather patterns result from variations in the ocean temperatures of the equatorial Pacific. The occurrence of the so-called El Niño-Southern Oscillation (ENSO) event has a notable impact on the amount of rainfall in Malaysia. However, the magnitude of the impact depends on the intensity of the event. Additionally, the occurrence of the ENSO event also influences the production of crude palm oil (CPO) as rainfall is one of the key requirements for oil palm cultivation. This article describes the development of the ENSO event and analyses its impact on the palm oil industry in Malaysia.

Keywords: El Nino, La Nina, ENSO, FFB yield, crude palm oil

About Post Author


* Malaysian Palm Oil Board,
6 Persiaran Institusi,
Bandar Baru Bangi,
43000 Kajang, Selangor,

E-mail: nadiakamil@mpob.gov.my