Malaysia aims to regain palm oil market share in EU amid global shortage

div classBodysc17zpet90 cdBBJodivpKUALA LUMPUR Reuters – Malaysia, the worlds second largest palm oil producer, on Friday said it plans to leverage the global edible oil shortage and “political tension in Europe” to regain market share after buyers shunned the commodity over environmental concerns.p

pPalm oil is used to make everything from lipstick to noodles, but top producers Indonesia and Malaysia have faced boycotts after being accused of clearing rainforests and exploiting migrant workers for the rapid expansion of plantations.pdivdivdiv classBodysc17zpet90 cdBBJodiv

pSome companies have introduced “palm oilfree products” in recent years, and the European Union EU, the worlds thirdbiggest palm buyer, has ruled to phase out palm oilbased biofuels by 2030.p

pBut retailers like British supermarket chain Iceland, which removed palm oil from its ownbrand food starting in 2018, have been forced to return to the controversial commodity in recent months due to a global edible oil shortage triggered by the RussiaUkraine war and Indonesias ban on palm oil exports.p

pZuraida Kamaruddin, Malaysian Minister for Plantation Industries and Commodities, said in a statement the government “will not want to waste a good crisis”.p

p“It is time we step up efforts to counter adverse propaganda to undermine palm oils credibility and for us to showcase the numerous health benefits the golden oil has to offer,” she said.p

pZuraida said global edible oil prices are likely to remain high in the first half of 2022 and EU demand is expected to increase in the near term due to tight sunflower and soy oil supplies. p

pEU vegetable oil group FEDIOL on Tuesday said Indonesias ban is not a concern as it has palm oil reserves for several weeks.p

pUncertainty over sunflower oil supplies due to Russias invasion of Ukraine has spurred demand for rivals palm and soy oil as importers seek alternatives, fuelling a redhot vegetable oil market.p

pZuraida said Malaysia stands to benefit from this shifting demand and will undertake “aggressive efforts and campaigns” to fill the global supply gap in the long run. p

pMalaysia and Indonesia, which account for 85 of global palm oil output, have maintained that EU restrictions on palm oilbased biofuels are discriminatory and have launched separate cases with the World Trade Organisation