Sector News

Indonesia announces palm oil export ban

April 30, 2022
Food & Drink

The world’s largest palm oil producer, Indonesia, has announced an export ban that will significantly disrupt global supplies of the commodity.

In a video broadcast, cited by Reuters, Indonesia’s President Joko Widodo said he wanted to ensure domestic availability of food products. The government’s plans to halt shipments of the cooking oil come into effect on 28 April.

The move has triggered further uncertainty in the global edible oils market, which has already been rocked by disruption to sunflower oil exports from Ukraine and Russia.

However, the extent of the ban remains to be seen, with Bloomberg reporting that Indonesia will only halt exports of bulk and packaged RBD (refined, bleached and deodorised) palm olein, a higher-value, processed product.

Meanwhile, exports of crude palm oil and RBD palm oil will still be allowed, according to the media platform, which cites people familiar with the matter.

Industry sources have also reportedly told Reuters that the ban will not cover crude palm oil.

Indonesia accounted for nearly 60% of global palm oil production in 2021, followed by Malaysia (25%), according to estimates from the US Department of Agriculture.

The ingredient is used in a vast array of products, including ice cream, instant noodles, chocolate and crisps, and the ban could further raise costs for packaged food producers worldwide.

According to Reuters, global prices of crude palm oil have surged to historic highs in 2022, amid rising demand and weak output from the two top producers, compounded by a previous move by Indonesia to restrict exports.

The country’s government is under pressure to control cooking oil prices.

By Antonia Garrett Peel

Source: foodbev.com

comments closed

Related News

October 2, 2022

Drinktec 2022: In review

Food & Drink

In the lead-up to the world-famous Oktoberfest – which celebrates Bavarian tradition, beer and the festival spirit – Munich was already buzzing with activity by the time the doors opened to Drinktec 2022 on 12-16 September. The atmosphere was lively, with approximately 50,000 visitors from 169 countries in attendance.

October 2, 2022

Alan Jope to step down as Unilever CEO

Food & Drink

Unilever has announced CEO Alan Jope’s decision to retire from the company at the end of 2023, after five years at the helm. The announcement comes less than a year after a failed attempt by Unilever to buy GlaxoSmithKline’s consumer healthcare business and just months after activist investor Nelson Peltz joined the company’s board.

October 2, 2022

Lakeland Dairies names Colin Kelly as next group CEO

Food & Drink

Lakeland Dairies has announced that Colin Kelly will assume the role of group CEO following the retirement of Michael Hanley at the end of the year. Kelly will take up the position in January 2023, while Hanley will step down in December this year.