Home » The war favors the recovery of palm oil – Alessandro Lubello

The war favors the recovery of palm oil – Alessandro Lubello

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The war favors the recovery of palm oil – Alessandro Lubello

For years the food industry has been looking for alternatives to palm oil, a raw material at the base of many products in the sector (in reality it is also used in personal hygiene products, in metal, plastic, rubber objects and in processes for the production of fabrics, paints, paper and electronic components), but at the center of harsh environmental campaigns.

The cultivation of the plant from which this ingredient is extracted, the palm Elaeis guineensiscauses the destruction of the rainforest or of areas previously dedicated to other crops, especially in Southeast Asia (Indonesia and Malaysia are the main global producers, but recently production has also extended to Africa), and the survival of orangutans is at risk.

“Now, however,” writes Bloomberg Businessweek, “since the war in Ukraine has blocked more than half of the world production of sunflower oil, which is the main alternative to palm oil, food companies have decided to return. backwards”. In 2018, Iceland foods of the UK committed to removing palm oil from its entire line, while now it has opted for the use of certified sustainable palm oil. “It was a difficult decision. I never thought I’d have to go back to palm oil, ”said the company’s general manager, Richard Walker.

The favorable moment
Together, Russia and Ukraine account for around 65 percent of global sunflower oil production, 25 percent of wheat, 20 percent of world barley production, and 18 percent of world production of barley. corn.

The conflict has stalled transport, delayed harvests and raised the cost of fertilizers, causing the prices of food to skyrocket, especially those of essential goods such as bread, meat and cooking oil. Furthermore, the governments of Indonesia, India and Argentina have decided to limit exports to safeguard their food reserves, making the global availability of wheat, sugar and vegetable oils even more scarce.

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Palm oil suppliers want to take advantage of the favorable moment for those who sell such sought-after and expensive goods. Malaysia, the world‘s second largest producer, confirmed its willingness to meet the recovery in demand after Indonesia introduced export restrictions. The Kuala Lumpur government is also seeking sustainability certification for its palm oil, as some large food companies have pledged to buy only from suppliers who do not destroy forests and ensure decent working conditions.

Currently only a fifth of palm oil produced worldwide has sustainability certification issued by organizations such as the Roundtable on sustainable palm oil. And only half of the oil produced in a sustainable way is sold thanks to the certification: the rest is usually mixed with oil of uncertain origin and distributed without the sustainability label.

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