Vegetable fat production in SEA runs low, as feedstock origins approach East Africa
Supply Chain Management
Market & Price Trends
Innovation & Technology
Caio Alves
Published Apr 20, 2020
Exporters and crushers have been striving to balance their vegoil commitments by offsetting products initially scheduled to ship to the SEA route, now to be East Africa oriented.
As the secluded Malaysia is disrupting supply on the vegetable fat markets by having diminished industrial operations for chocolates, margarine, ice cream and other related derivatives, many importers are either requesting refineries in Brazil and Argentina to postpone or to advance shipments and flexitank loadings, making the suppliers to negotiate an extension of agricultural loans.
Another opportunity has been perceived in East African countries, where most consumers depend on informal markets rather than retailers. The continent is specifically going through a shortage based on the Indian capped production of palm oil, reflecting on a surging demand for the soybean and sunflower by-products in the region. As palm supply is cut short, sunflower prices may feel a relative pressure from consumption markets in the short term.
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