Press Release
Regulated information
The connection to the world of sustainable tropical agriculture
Interim statement of the SIPEF group
as per 30 September 2025 (9m/25)
SIPEF Group heading for record performance in 2025
SIPEF recorded a total Crude Palm Oil (CPO) production of 117 565 tonnes for Q3 of 2025, reflecting a 28.1 % increase compared to the same period in 2024. This growth was driven by an increase in Fresh Fruit Bunches (FFB) and improved oil extraction rates across both Indonesia and Papua New Guinea.
Banana production in Q3 increased by 3.1% year-on-year, supported by the maturing of recently developed areas.
Palm oil markets remain favourable from a historical perspective and prices fluctuated between USD 950 and USD 1 100 per tonne on the Malaysian MDEX.
The Group realised net sales prices for CPO of more than 12.5% above the level of the first nine months of 2024, with 84% of its budgeted palm oil volumes sold at an average ex-mill gate price of USD 961 per tonne
Palm oil production over 2025 is expected to come in around 430 000 tonnes, barring exceptional weather conditions.
With 84% of expected palm oil production sold and the prospect of continued favourable market prices, the result of the period - share of the Group - is projected to range between USD 115 million and USD 125 million for 2025.
The Group remains on course to finish 2025 with a positive net financial position as it executes its investment programme of approximately USD 100 million.
SIPEF enhances sustainability transparency with greenhouse gas (GHG) accounting and Science Based Target Initiative alignment.
SIPEF Joins the Palm Oil Collaboration Group (POCG) and High Conservation Value Network (HCVN).
Group production
2025 (in tonnes)
Own
Third
Q3/25
YoY%
Own
Third
YTD
YoY%
parties
parties
Q3/25
Palm oil
99 074
18 490
117 565
28.13%
269 184
56 440
325 624
22.18%
Bananas
12 628
0
12 628
3.09%
38 606
0
38 606
3.30%
2024 (in tonnes)
Own
Third
Q3/24
Own
Third
YTD
parties
parties
Q3/24
Palm oil
78 485
13 270
91 756
222 201
44 301
266 502
Bananas
12 250
0
12 250
37 372
0
37 372
Group production
SIPEF delivered a strong third quarter, with fresh fruit bunches (FFB) increased by 19.9% compared to last year, lifting the year-to-date FFB to 14.8%. Crude palm oil (CPO) production increased by 28.1% in Q3 and is 22.2% higher year-to-date. The improvement reflects the maturing hectares in South Sumatra and a solid execution in Indonesia, as well as the recovery in Papua New Guinea after the volcano eruption in November 2023. All supported by higher mill throughput with an increased Group oil-extraction rate of 23.8% for the quarter (vs +22.6% last year).
By the end of September, the Group's Indonesian palm oil production increased by 20.3% compared to the previous year. And with the ongoing efficiency improvements at the Indonesian palm oil extraction mills, the Oil Extraction Rate (OER) increased from 22.4% last year to 23.2% by the end of Q3 2025, or an increase of 3.6% in OER compared to the same period last year.
North Sumatra delivered on a solid quarter. On mineral soils, third-quarter FFB increased 2.6% compared to last year, taking the year-to-date improvement to 3.6%. Early-season rains supported the crop, although a June dry spell delayed ripening and July until September stayed hot and dry until showers returned late in the quarter. Up to date the cumulative rainfall remained 8.5% below the 10-year average and 5.8% below 2024. On the organic soils, production increased 0.2% in Q3, but year-to-date was 0.1% lower, reflecting lingering water deficits from late 2023-2024 and impacted by the June-August dryness this year. Although the CPO production increased by 23.9 % year-to-date due to improved oil extraction rate and milling efficiencies as well as the contribution of the Citra Sawit Mandiri (CSM) crop to the Umbul Mas Wisesa group (UMW) mill (representing 20.6 % of the total UMW group FFB productions)
The Agro Muko plantations in Bengkulu are showing good progress with the conversion of the rubber to palm, which has been completed, and the palm replanting programme firmly on track. The FFB production increased in Q3 with 9.9% compared to last year and the year-to-date FFB productions with 13.4% compared to last year, which was helped by favourable early-year rains and stronger fruit set in key estates. The number of bunches was also up (+16% year-to-date) and showing a good average bunch weight in line with expectations.
South Sumatra recorded a marked increase in the third quarter, with the own FFB production increasing by 26.4% against last year and year-to-date +28.6%. Also, with the own CPO output well above the same period last year (+36.2% year-to-date). The improvement reflects a larger mature area, good fruit set and a higher average bunch weight, supported by favourable August rainfall that exceeded both last year and the 10-year norm, helping to ripen the crop towards the quarter-end. Year-to-date, the region is materially ahead of 2024, and the operational focus remains on water management and milling throughput to carry the momentum into Q4.
In Papua New Guinea, Hargy Oil Palms' recovery accelerated in Q3. Own-crop FFB rose 60.5% compared to the same period last year and smallholder production increased with 34.7%. The total FFB production increased with 18.7% against last year. At Navo plantations, the rebound from the 2023 volcanic eruption continued but a temporary male-flowering phase is still evident and may temper Q4 output, with further improvement expected early next year. Although Bakada plantation maintained its strong momentum with FFB up 21.1% year-to date as well as the Hargy plantations improved, with year-to-date FFB 10.1% higher compared to last year. Although cumulative rainfall remained below the five-year average, its timing supported ripening, field access, and crop evacuation.
Own Crude palm oil (CPO) production at Hargy Oil Palms strengthened significantly in Q3 2025, up 73.8% year on year from the same quarter of 2024. Year to date, CPO output stood at 65 956 tonnes, representing a 26.7% increase compared with the same period last year. The palm oil extraction rate at Hargy averaged 24.8% in Q3, compared with 23.0% in the same quarter of 2024, translating into a 7.8% improvement. For the year to date, extraction rates reached 24.7%, up from 23.3% last year. The consistent recovery in production following last year's volcanic disruptions as well as the efficiency upgrades in the mills contributed to the improved oil yields. The total CPO production increased with 26.1% compared to last year.
Banana production in Côte d'Ivoire maintained strong momentum in the third quarter, increasing by 3.1% compared with last year, bringing year-to-date output to 3.3% above 2024 levels. Akoudié continued to lead growth, with production up 68% in the quarter and 67.8% year-to-date, reflecting completed planting and stable agronomic practices. Azaguié also delivered strong results, rising 25.8% in Q3 on the back of good yields and favourable local conditions.
Agboville and Motobé remained below last year quarter, down 26.6% and 43.3% respectively, following a period of drier weather and slower plant development. By end-June, rainfall was already 200 millimetres below average, widening to 300 millimetres by September compared with the ten-year average. The dry period required more irrigation, while unusually cool temperatures in July and August further slowed growth and reduced bunch weights. Conditions improved in September with warmer weather and some rainfall, supporting a rebound in vegetative growth and fruit weight. Production at Motobé was also temporarily affected by the decision to fallow roughly 40% of the area to enhance soil health and future yields. Despite these climatic and operational challenges, export volumes to the European Union (EU) and United Kingdom (UK) rose by 5.5% year on year by end-September, and fruit quality is good reflecting strong field and post-harvest management.
Markets
Average market prices
In USD/tonne
YTD Q3/25
YTD Q3/24
YTD Q4/24
Palm oil (CPO)
MDEX*
982
851
906
Palm oil (CPKO)
CIF Rotterdam**
1 874
1 233
1 381
Bananas
CFR Europe***
873
820
807
* Bursa Malaysia Derivative Exchange price data
** Oil World Price Data
*** CIRAD Price Data (in EUR)
Palm oil markets demonstrated strong resilience through the first nine months of 2025. In the early part of the year, sentiment was supported by Indonesia's phased rollout of the B40 biodiesel mandate from 1 January, which bolstered domestic consumption and provided a price floor amid global macroeconomic uncertainty. Some price pressure emerged later in the second quarter as the initial optimism moderated.
In the third quarter, palm oil stocks followed the typical seasonal pattern of accumulation after the production peak, while prices remained competitive relative to soybean oil. Market sentiment shifted decisively following the US announcement of higher biodiesel blending levels for 2026, which lifted the entire vegetable oil complex. Biodiesel demand growth has become a major driver of total consumption, with Brazil raising its blending rate and Indonesia confirming plans to advance from the B40 biodiesel blend to B50 in 2026.
Despite peak palm oil production, prices rallied sharply, with benchmark CPO futures on the Bursa Malaysia Derivatives (MDEX/BMD) climbing from around USD 950 per tonne to the USD 1 050 -1 100 per tonne range.
Alongside these supportive fundamentals, European policy developments remained an area of close attention. The industry continues to monitor the implementation timeline and compliance implications of the EU Deforestation Regulation (EUDR), which remains a source of uncertainty for procurement and supply chain planning heading into year-end.
Another factor shaping market sentiment has been the Indonesian government's recent acceleration of efforts to restructure and reallocate plantation areas found to be non-compliant with land regulations. Many of these areas have been placed under the management of PT Agrinas Nusantara, a state-owned institution.
Palm kernel oil (PKO) also remained firm in the third quarter, maintaining a clear discount to coconut oil (CNO) and sustained strong oleochemical demand. In September, CPKO CIF Rotterdam prices ranged between USD 1 950 -2 150 per tonne, compared with CNO at USD 2 500 -2 800 per tonne, providing a favourable spread for PKO in lauric blends. On the demand side, China's PKO imports remained robust throughout 2025, supported by healthy oleochemical activity, while supply conditions stayed relatively tight.
In the third quarter, the EU banana market was stable. Arrivals of Latin American (dollar-zone) fruit remained low and shipments from Africa increased. Caribbean supply eased in line with seasonal patterns but stayed above normal levels. Demand was quiet despite the planned promotions, and the ripening plant flows were uneven due to economic and political factors. Inventories edged up slightly yet remained contained and the conditions supported overall market stability.
Projected production
For the remainder of 2025, Indonesian production is expected to remain solid with North Sumatra to continue with steady performance in mineral soils offsetting slower recovery in organic soil areas. In Bengkulu, earlier dryness is still weighing on the production, but newly mature blocks are helping to stabilise output. South Sumatra is likely to progress as young maturing areas continue to contribute. Overall, field conditions point to a gradual improvement into late Q4 and a good outlook for 2026.
In Papua New Guinea, production remains ahead of expectations and continues to recover steadily. Both plantation and smallholder supplies are performing well, supported by good field conditions and efficient crop evacuation. Hargy and Barema are expected to maintain stable output throughout the remainder of the year, while Navo and Bakada may see a slight easing as fruiting patterns to normalise. The outlook for the final quarter will depend on how the wet season sets in. If rainfall arrives in a balanced way, not too heavy but sufficient and well distributed, it should continue to support ripening and harvesting, allowing the recovery trend to hold through year-end.
Annual CPO production is expected to come in around 430 000 tonnes, depending on how the wet season develops. Further improvements are anticipated in both oil extraction rates and palm kernel output over the final months of the year. Overall, 2025 is shaping up to be a strong agronomic year for the SIPEF group, reflecting solid field performance and consistent crop quality.
Banana flowering remains encouraging, with year-to-date flower counts about 3% higher than last year. However, the period's unfavourable weather has kept the average bunch weight below normal. As a result, SIPEF is on track to finish the year with volumes roughly in line with expectations and with promising prospects looking at market conditions and finalising its expansion.
Future evolution of markets
After a period of stock-building in the third quarter, the near-term outlook appears moderately supportive. Malaysia's inventories, which peaked in September, are expected to decline toward year-end as seasonal production slows and festive-season exports pick up - particularly to India, where August imports reached a 13-month high thanks to a price advantage.
Looking further ahead, attention is turning to the impact of higher biodiesel mandates in the US, Indonesia, and Brazil for 2026. These policies are expected to outpace global growth in vegetable oil production. Palm oil output is forecast to register only modest growth next year, with much depending on the performance of global oilseed crops.
In the US, farmers have been hit by the ongoing trade tensions with China and are closely watching the outcome of upcoming trade talks between the two governments.
Weather remains another key swing factor. Forecasters are maintaining a La Niña watch into the fourth quarter, which could alter rainfall patterns and yields. Historically, La Niña conditions have tended to benefit palm oil production, though they may negatively affect crops in Latin America. Given how climate patterns are shifting, this will require close monitoring.
Overall, after passing the peak production period, market fundamentals point to a solid price outlook. If underlying fundamentals continue to hold, the outlook is favourable. SIPEF expects a stable and resilient price environment going forward.
The global banana output so far was lagging in 2025 due to social disruptions in Panama and climate-related pressures across several origins. Demand remains resilient as bananas are affordable and a healthy choice with the demand for sustainable and Fairtrade segments continuing to expand. Consumers increasingly prefer