Malaysia aims to regain EU palm oil market share amid global shortage

KUALA LUMPUR, May 6 (Reuters) – Malaysia, the world’s second-biggest producer of palm oil, said on Friday it plans to take advantage of global edible oil shortages and “political tension in Europe” to regain market share after buyers will reject the product due to environmental concerns. .

Palm oil is used to make everything from lipstick to noodles, but major producers in Indonesia and Malaysia have faced boycotts after being accused of clearing rainforests and exploiting migrant workers for rapidly expanding factories. plantations.

Some companies have introduced “palm oil-free products” in recent years, and the European Union (EU), the world’s third-largest buyer of palm, has ruled to phase out palm oil-based biofuels by 2030.

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But retailers such as UK supermarket chain Iceland, which removed palm oil from its own-brand foods from 2018, have been forced back to the controversial product in recent months due to global edible oil shortages triggered by coronavirus. the war between Russia and the Ukraine and the war in Indonesia. Ban on exporting palm oil. read more

Zuraida Kamaruddin, Malaysia’s Minister for Plantation and Commodity Industries, said in a statement that the government “would not want to waste a good crisis.”

“It is time we stepped up efforts to counter adverse propaganda to undermine the credibility of palm oil and showcase the many health benefits that golden oil has to offer,” he said.

Zuraida said global edible oil prices are likely to remain high in the first half of 2022 and EU demand is expected to rise in the near term due to tight supplies of sunflower and soybean oil.

EU vegetable oil group FEDIOL said Tuesday that Indonesia’s ban is not a concern as it has several weeks’ worth of palm oil reserves.

Uncertainty over sunflower oil supply due to Russia’s invasion of Ukraine has spurred demand from rival palm and soybean oil as importers seek alternatives, fueling a red-hot vegetable oil market. read more

Zuraida said Malaysia will benefit from this changing demand and undertake “aggressive efforts and campaigns” to fill the long-term global supply gap.

Malaysia and Indonesia, which account for 85% of global palm oil production, have argued that the EU’s restrictions on palm oil-based biofuels are discriminatory and have launched separate cases with the World Trade Organisation.

($1 = RM4.3700)

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Information from Mei Mei Chu; Edited by Kanupriya Kapoor

Our standards: the Thomson Reuters Trust Principles.

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