Statement on the EU supply of palm oil following Indonesian decision to temporarily suspend the export of palm oil products
The temporary export ban decided by the Indonesian government to keep prices of cooking oil low for local consumers, is affecting several palm oil products, including crude palm oil, which FEDIOL member companies source and process to refined palm oil for the European market. In a situation of high commodity prices, including for vegetable oils, this will add tension on global markets.
Europe sources about 335.000 tonnes of crude palm oil from Indonesia in average per month, which represents over 40% of the crude palm oil imports. Europe sources also from other origins, notably from Malaysia, Papua New Guinea, and few countries of Latin America.
There are currently 4-6 weeks of palm oil volumes available in European storage facilities and the temporary decision by the Indonesian government does not give rise to concern for the supply on the European market in the short term. It is expected that this export ban will be of a temporary nature, as Indonesia exports approximately 2 million tons of palm oil per month and there is maximum storage capacity for a few weeks to a month.