Malaysia paving way for palm oil to regain market share in EU, says Zuraida
The Ministry of Plantation Industries and Commodities (MPIC) will take advantage of the shortage of global edible oil amid the political tension in Europe to promote Malaysian palm oil, paving the way for the commodity to regain its market share, especially in the European Union (EU).
Minister Datuk Zuraida Kamaruddin said Russia’s invasion of Ukraine on 24th Feb this year had significantly affected the global vegetable oil supplies as the uncertainty over Black Sea exports had resulted in higher vegetable/edible oil prices.
部长Datuk Zuraida Kamaruddin表示，俄罗斯于今年 2 月 24 日入侵乌克兰，严重影响了全球植物油供应，因为黑海出口的不确定性导致植物/食用油价格上涨。
“The Russian-Ukraine conflict has led to shortages of sunflower oil and rapeseed oil with both countries accounting for 80% of global exports.
“The MPIC believes that the Black Sea tension will benefit Malaysian palm oil exports as many European countries with high dependency on sunflower oil have now shifted their demand to palm oil,” she said in a statement on 6th May.
“MPIC 认为，黑海紧张局势将有利于马来西亚棕榈油出口，因为许多高度依赖葵花籽油的欧洲国家现在已将需求转向棕榈油，”她在5 月 6 日的一份声明中表示。
Zuraida said Ukraine and Russia are entering the critical month for sunflower planting, which should have started in April, hence the prolonged war could hamper the planting season.
Ukraine’s and Russia’s sunflower oil exports account for 10% of global vegetable oil exports and market analysts are presently anticipating an increase in palm oil demand from the EU region in the near term given lower quantities of soybean exports from Brazil, Paraguay, Russia and Ukraine as well as reduced sunflower exports from Russia, Kazakhstan and Ukraine.
Coupled with the latest move by neighbouring Indonesia, which is the world’s largest palm oil exporter, to widen the scope of its export ban on raw materials for cooking oil to include crude and refined palm oil, global vegetable oil prices are likely to remain high in the first half of 2022, the minister said.
“This is why I believe it is timely now for palm oil to regain its confidence from European buyers given the publicity the commodity received in the past,” she said.
Zuraida said she had instructed relevant agencies under the MPIC, such as the Malaysian Palm Oil Council and the Malaysian Palm Oil Board, to undertake aggressive efforts and campaigns not just for the commodity to fill the global market gaps in the interim. These agencies, in collaboration with the MPIC, will have to ensure that Malaysian palm oil remains a top choice in global markets in the long run, particularly those where consumers have been exposed to vicious propaganda in the past.
Zuraida说，她已指示 MPIC 下的相关机构，例如马来西亚棕榈油委员会和马来西亚棕榈油委员会，采取积极的努力和运动，而不仅仅是为了在此期间填补全球市场空白。这些机构必须与 MPIC 合作，确保从长远来看，马来西亚棕榈油仍然是全球市场的首选，尤其是那些消费者过去曾受到恶意宣传的市场。
She called on the agencies to step up efforts to counter adverse propaganda which undermines palm oil’s credibility and for the country to showcase the numerous health benefits the golden oil offer.