Mass consumption; how is the palm oil market developing in Russia?

Published 2022년 5월 31일

Tridge summary

Indonesia, the world's leading palm oil producer, has suspended its export of the commodity due to decreased production and increased costs. This has led to concerns about domestic food availability and affordability. The suspension has impacted Russia, which imported 1.7 million tons of Indonesian palm oil last year, accounting for 97% of its total imports. However, Russia has sufficient domestic raw materials like sunflower, soy, and rapeseed oil to meet its needs. The suspension has affected various industries that use palm oil, including fast food companies. The suspension has also fueled misconceptions about the quality of palm oil, with some viewing it as a technical product rather than food. However, the Russian food industry receives palm oil that meets all necessary requirements, making it a cost-effective solution for reducing the final product cost.

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

Original content

05/31/2022 Our food industry has been in a stupor for almost a month: Indonesia, the world's leading producer of palm oil, has suspended its export. And not because of anti-Russian sanctions. The production of the "palm" has simply decreased, its cost has risen, and the Indonesians have problems with access to basic foodstuffs. News agencies voiced the promise of the country's President Joko Widodo: "I will personally supervise import restrictions so that vegetable oil in the domestic market is abundant and at an affordable price." Without Indonesian palm oil, the whole world could be left. Food, cosmetics and... gas tank Now let's imagine the picture "in numbers". Indonesia produces about 45 million tons of this oil. 15 million tons are exported. Russia imports 1 million 70 thousand tons, of which 97% is Indonesian "palms". The second oil supplier is Malaysia with a share of 3%, respectively. In monetary terms, Russia spent $1.2 billion on such purchases last year. By the way, it ...

Source: Oilbranch