Global: Future of the most versatile food oil may lie in Latin America

Published 2024년 4월 14일

Tridge summary

The global palm oil industry is undergoing a significant shift as traditional powerhouses like Malaysia and Indonesia face challenges from ageing trees and labor shortages, while Latin American countries, notably Colombia and Guatemala, emerge as new leaders. These countries are not only achieving higher yields per hectare but are also leveraging advanced technologies and sustainable practices to meet European regulations against deforestation. Guatemala, in particular, has made remarkable strides despite its late entry into the palm oil market, with yields surpassing both Colombia and the global average, thanks to a focus on sustainability, climate change, and the use of satellite technology. This evolution in the palm oil industry underscores a growing competition, especially in the European market, as Latin American producers continue to enhance their agricultural productivity.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

(April 14): The world is facing a growing shortage of its most versatile edible oil. The solution may lie with emerging producers half a world away from Southeast Asia’s vast palm oil plantations. In Malaysia and Indonesia, which at present day, account for the lion’s share of output, the ageing trees carpeting much of the region are becoming less productive. Meanwhile, labourers are increasingly scarce and controls on land clearing have tightened, making it harder to replant. It’s a different picture thousands of miles away for new planters in Colombia and Guatemala. Here, some farmers churn out almost double the amount of oil per hectare, compared with their Southeast Asian peers. In addition, to comply with looming European rules to ban imports of crops from newly deforested land, growers are already intensely focused on satellite and geo-location technology to ensure supply chains are fully traceable. With elevated yields and the capacity to appeal to a wide customer base, ...

Source: Theedgemarkets