The world faces a rise in the price of vegetable oils due to a shortage of supply
China
Published Jun 9, 2023
Tridge summary
Aaron Henson, senior economist at LMC International, made the announcement. The market is seeing a decrease in the supply of exporters for vegetable oils. If the shortage continues to grow, their prices will rise. The situation will be corrected by increasing the production of palm oil or the processing of oilseeds, KazakhZerno.kz reports. Palm oil production in Indonesia has slowed down.
Original content
Aaron Henson, Senior Economist at LMC International, made the announcement. The market is seeing a decrease in the supply of vegetable oils by exporters. If the shortage continues to grow, their prices will rise. The situation will be corrected by increasing the production of palm oil or the processing of oilseeds, KazakhZerno.kz reports. Palm oil production in Indonesia has slowed down. The country is seeing a smaller increase in oil palm area, and the renewal of old plantations with new seedlings has also decreased. In 2023, the area under trees will increase by only 40 thousand hectares (20% of the previous growth levels). In 2023/2024 MY, palm oil production in key producing countries may decrease, i.e. in Malaysia and Indonesia. This will happen if the natural phenomenon of El Niño repeats. According to the expert, palm oil is the driver of downward dynamics in the vegetable oil market. Most likely, Indonesia will produce less and less of this product in the next twenty ...
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