The world decided to return to the consumption of palm oil
Food manufacturers have spent years looking for alternatives to palm oil. Now a special operation in Ukraine disrupts more than half of the world’s supply of sunflower oil, forcing the world to return to palm oil again, writes Bloomberg.
For example, the English company Iceland Foods Ltd. pledged to eliminate palm oil entirely in 2018, but has returned to using it in 25 products, including frozen garlic bread and biscuit puddings.
Russia and Ukraine supply about 65 percent of the world’s sunflower oil, 25 percent of wheat, 20 percent of barley and 18 percent of corn. The conflict caused problems with transportation, delivery of crops and fertilizers, as a result, food prices reached record highs, and the world decided to return to palm oil consumption.
Palm oil exporters do not miss the opportunity to win back market share, the newspaper notes. Some growers choose to buy oil only from suppliers whose farms are committed to not cutting down forests, clearing new land, or using forced labor.
At the same time, Greenpeace called sustainable palm oil a scam and said that some destroy forests for the sake of production and get away with it.
In March, Europe predicted a shortage of sunflower oil. European oil extraction plants receive 35-45 percent of raw materials for the production of sunflower oil from Ukraine. It is impossible to replace Ukrainian raw materials quickly in a short time.