Next year, palm oil will retain its leading position in the structure of global vegetable oil production with a share of about 36%. This forecast was voiced by Eddy Martono, Chairman of the Indonesian Association GAPKI. He also stressed that the dynamics of consumption of vegoil products will continue to grow in the world – traditionally the annual increase is 3-5 million tons.
“Palm and other vegetable oils can capitalize on this niche to increase their market share,” he noted.
According to Martono, one of the challenges the industry will face in 2024 is related to the EU’s deforestation law (EUDR). The EU has previously said it intends to restrict palm oil supplies if products are not certified as free of deforestation during production.
“GAPKI is taking a number of steps to combat EUDR, including working with Malaysia. Our office in Europe is also very active in making all necessary diplomatic efforts. We hope that the EU will relax the conditions for the implementation of EUDR,” the industry association chief said.
Martono also expressed hope that the national government would take appropriate measures to keep Indonesian palm oil competitive in the global market.
“We see potential volatility in palm oil prices coupled with stagnant production. These factors point to uncertainty in global trade, so businesses need to increase their resilience,” he concluded.
Source: Oleoscope