FEDIOL Statement

Statement on the EU supply of palm oil following Indonesian decision to temporarily suspend the export of palm oil products

Brussels, 4 May 2022 - 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.

Note to the editors:

FEDIOL, the EU vegetable oil and protein meal industry association, represents the interests of the European oilseed crushers, vegetable oil refiners and bottlers. FEDIOL members are 10 national associations and associated company members in 7 other European countries. With about 180 facilities in Europe, the sector provides 20,000 direct employments. Its members process approximately 55 million tonnes of basic products a year, both of EU origin and imported from third country markets. The sector processes notably rapeseed, sunflower seed, soybeans and linseed into oils and meals for food, feed, technical and energy uses essentially on the European market.

FEDIOL AISBL - THE EU VEGETABLE OIL AND PROTEIN MEAL INDUSTRY

168, avenue de Tervuren (bte 12) ● B 1150 Bruxelles ● Tel (32) 2 771 53 30 ● Email : fediol@fediol.eu ● http://www.fediol.eu Ets n° 0843946520 ● Transparency Register n°85076002321-31