- Like many countries across the world, palm oil is the most produced, consumed and traded edible oil in Africa. Africa imports substantial quantities of Palm oil from Indonesia.
Indonesia, the world’s biggest exporter of palm oil, suddenly announced that it is imposing a ban on palm oil exports from April 28 to curtail the rising domestic cost of edible oil. Like many countries across the world, palm oil is the most produced, consumed and traded edible oil in Africa. Africa imports substantial quantities of Palm oil from Indonesia.
The abrupt announcement of Indonesia threatens to worsen food inflation already strained by Russia’s invasion of Ukraine who are major exporters of sunflower oil. The decision is bound to inflate prices around the world. Prices of packaged food such as biscuits, noodles, and cakes are expected to rise as it is a major ingredient in thousands of products from food to personal care items.
Read Also;
https://trendsnafrica.com/russia-ukraine-war-and-its-fallout-on-africa/
https://trendsnafrica.com/russia-ukraine-war-to-escalate-global-food-grain-and-edible-oil-supply-un/
https://trendsnafrica.com/russia-ukraine-war-may-affect-food-grain-supplies-to-africa/
In the early 1960s, Nigeria was the world’s largest palm oil producer with 43 % of global market share. Currently, Nigeria is a net importer of palm oil importing 2 million metric tonnes in 2021. Nigeria’s palm oil production stood at a meagre 1.4 million metric tonnes of palm oil, a fraction of Indonesia’s 44.5 million metric tonnes in 2021. It is the 28th palm oil-exporting country in Africa, according to the USDA.Though Nigeria is the largest producer of palm oil in Africa, Cote D’ivoire is currently the largest exporter of the commodity from Africa.
The turmoil in the palm oil supply in the international market has exposed Nigeria’s inability to step in as an alternative source in a market it once led. Experts attribute the decline in its palm oil output to decades of neglect of the sector in preference for crude oil. Efforts by the World Bank and successive governments to revitalise the sector have also been unsuccessful.
