Palm oil is the most widely used oil in the food industry, as it is a product used for the production of a number of confectionery products, as well as for cosmetic products.
And now it is one of the hottest products on the world market, as in the last year its price has risen by over 120% and hit a record of 1091 dollars per ton on Wednesday. This is bad news for a number of industries – from chocolate, through soaps, lipsticks, to biofuel.
“Reaching a historic peak in the price of palm oil will have an impact on consumer habits,” warns Kaleesuwari International, head of trading at analyst firm Kaleesuwari.
“Consumption is expected to shrink. And if this upward trend in prices continues, it is likely to lead to changes in the habits of consumers regarding food, as well as their producers,” he was quoted as saying by Bloomberg.
The price of cocoa in Europe has hit an annual low
The reasons are the forecasts for a good harvest and the collapse in consumption
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The largest importer of palm oil in the world is India, followed by China. And the largest producer is Indonesia. In Europe and the United States in recent years, the oil is unloved because its extraction is associated with deforestation and habitat disturbance of animal species.
Globally, however, companies in the food and cosmetics industries are defending their position that the palm oil they use is extracted and produced sustainably.
On the other hand, those who decide to replace palm oil with another alternative will face no less problems. The reason is that soybean oil, which is the second most popular, is also significantly more expensive. For the last year its price has increased by 150%. Sunflower oil prices, in turn, doubled over the same period.
