Preparations for the festivities caused an upsurge in the demand of cooking oil in Indonesia. For the first time in two years of COVID-19 restrictions, people were hosting extravagant feasts. It was within this context that the Indonesian government ultimately decided to ban the export of crude and refined palm oil.
Indonesia Again Clamps Down on Palm Oil Exports to Control Domestic Prices. Indonesia this week suspended the majority of its previously issued palm oil export permits in order to bolster domestic supplies and rein in rising cooking oil prices.
Malaysia has threatened to ban palm oil exports to the European Union in retaliation for the bloc's new regulations aimed at curbing deforestation, despite warnings about the short-term economic damage such a boycott could cause.
Palm oil, used in a wide range of applications from food to cosmetics, is the most heavily consumed vegetable oil. Indonesia, the biggest producer and exporter, imposed an export ban in April 2022 as it sought to curb inflation and secure local supplies.
Indonesian palm oil producers have been struggling with high inventories since the country imposed a three-week export ban through to May 23 to reduce domestic cooking oil prices.
JAKARTA, May 19 (Reuters) - Indonesia will lift its three-week-old palm oil export ban from Monday due to improvements in its domestic cooking oil supply, its president said, a move applauded by farmers amid mounting calls for its removal.
In Indonesia companies drain carbon-rich peatland forests to create palm oil plantations. When that happens, peatland forests become highly flammable and it becomes very hard to contain fires. Burning peatlands release a staggering amount of carbon dioxide into the atmosphere.
JAKARTA, Nov 11 (Reuters) - Nine Indonesian companies on Friday signed contracts to sell 2.5 million tonnes of palm oil products valued at $2.6 billion to 13 Chinese buyers, the Indonesian trade ministry said in a statement. The deal was a follow up from President Joko Widodo's state visit to China in July.
Palm oil production in Indonesia
Among the companies involved in palm oil production, Wilmar International and Golden Agri-Resources make up two of the largest players in the industry. Its biggest palm oil export market is India, the world's largest consumer of edible oils.
India buys palm oil mainly from Indonesia, Malaysia and Thailand, while it imports soyoil and sunflower oil from Argentina, Brazil, Russia and Ukraine.
Nestle can no longer claim to use certified sustainable palm oil in its chocolates and other products, after being suspended by the group responsible for certification. But Greenpeace says RSPO has its priorities wrong, and is ignoring more serious violations by its members including deforestation.
Palm oil and related products linked to Sime Darby were banned from entering the US since January 2022 on findings of forced labor.
As part of its latest conservation efforts, the U.K. has imposed a rule banning companies from using palm oil in certain products, which means companies who don't comply could face a major fine.
Exporters and Importers
In 2021, the top exporters of Palm Oil were Indonesia ($27.3B), Malaysia ($15B), Netherlands ($1.18B), Guatemala ($715M), and Papua New Guinea ($706M). In 2021, the top importers of Palm Oil were India ($8.72B), China ($5.33B), Pakistan ($3.36B), Netherlands ($2.25B), and United States ($1.71B).
Global suppliers of palm oil are intensely concentrated. The 2 biggest exporters, Indonesia and Malaysia, accounted for 83.9% of the value for all palm oil exported in 2021.
Hence, replacing palm oil with other vegetable oils would lead to even higher losses of forest and other natural habitats. Conversion of natural land to agricultural land is the main threat to biodiversity, especially in tropical regions, and also accounts for 50% of all the greenhouse gas emissions from agriculture.
Around 90% of the world's oil palm trees are grown on a few islands in Malaysia and Indonesia – islands with the most biodiverse tropical forests found on Earth. In these places, there is a direct relationship between the growth of oil palm estates and deforestation.
Wilmar International
This is an international company based out of Singapore and is the largest producer of palm oil in the world. Wilmar International owns 242,403 hectares of palm oil plantations in Malaysia and Indonesia, with 65% of that land in Indonesia.
Originally found in West Africa, the oil palm tree is now cultivated across Asia, Africa and Latin America. Indonesia and Malaysia are by far the largest palm oil producing nations. Together they account for 85-90 percent of the total production of this vegetable oil.
Asia is by far the largest and fastest-growing consumer of palm oil, responsible for two thirds of global consumption. The three largest consuming nations are Indonesia, India and China which between them account for 45 per cent of global demand.
As per Index Mundi, in 2022, Indonesia and Malaysia were the leading exporters of palm oil, while India, China, the EU, and Pakistan remained the leading importers. As you will find out, most companies in our list also have either Malaysian or Indonesian origins.
The expansion of oil palm plantations has been an important driver of deforestation in Indonesia for the past 20 years, accounting for one-third (3 million hectares, ha) of Indonesia's loss of old-growth forest.
What is the problem with palm oil? Palm oil has been and continues to be a major driver of deforestation of some of the world's most biodiverse forests, destroying the habitat of already endangered species like the Orangutan, pygmy elephant and Sumatran rhino.
Other names for Palm oil include Palmate, Cetyl Palmitate and Octyl Palmitate plus more, such as Sodium Lauryl Sulfate which can be made from Palm Oil. With these different names you may be supporting the palm oil industry without even knowing! Be sure to check your labels.