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Paganini: Palm oil is not going anywhere; the supply chain is resilient and sustainable. Emotionality can only lead to speculation

Rome, 28 April 2022 – “The Indonesia government’s decision to extend the export bloc to raw and refined palm oil should not scare us. As stated multiple times in the past, the palm oil supply chain is resilient and sustainable, guaranteeing the supply needed to satisfy our food demands. Contrary to some claims heard in the past few days, it is at this time that it becomes clear how palm oil is protected from issues affecting alternative oils, and how boycott policies are merely pretextual” – states Pietro Paganini, Founder and President of Competere.

“Although Indonesia is undoubtedly the world’s main exporter with about 51.3 MT, there are several other producing countries who export to Europe, all scattered along the equatorial line from South-East Asia to Central America, and through Africa. Today, palm oil accounts for 60% of the global vegetable oil exports, by far the most traded among them (Source: Foreign Agricultural Service/USDA), and there are over 3 million smallholders who work along the supply chain. Malaysia alone has substantial production levels, followed by Thailand, Nigeria and Colombia” – Paganini continues.

“Instead of creating panic and crying wolf, we should think about the futility of the boycott that the palm oil sector has suffered at the hands of ideology and commercial logics, acknowledging instead the leaps taken toward sustainability: over 95% of the palm oil imported in Italy is certified sustainable.

As has been the case in other sectors, we must foster constructive conversations with producing countries, working so that the production chains may turn sustainable and able to guarantee strategic supply. Emotional reactions can only lead to speculation and a disproportionate increase in prices, encouraging mistrust and populist choices that would eventually harm consumers’ best interests” – Paganini concludes.