Jakarta – The global demand for vegetable oils will keep increasing in the future, along with the growth of the global population. As the global population is projected to reach 10 billion in 2050, the need for vegetable oils will increase to 307 million tons per year.
Farid Amir, Director of Agricultural and Forestry Product Export at the trade ministry’s (Kemendag) foreign trade directorate general, said that due to the global population growth, the demand for vegerable oils will almost double from 165 million tons in 2013 to 307 million tons in 2050.
“As the global population is predicted to reach 10 billion in 2050, the demand for vegetable oils is projected to nearly double from 165 million tons in 2013 to 307 million tons in 2050,” he said during a public discussion in Jakarta on Wednesday, 14 June 2023.
He pointed out that in 2021 total global production of palm oil reached 75.5 million tons. Indonesia contributed more than 60% of the global palm oil production and 22% of the total global production of vegetable oils.
“We should be proud as our production volume of palm oil was no less than 46 million tons, able to export CPO and dervative products at 35 million tons in 2021,” he said.
Farid said that the export performance had indicated that Indonesia’s palm oil products have an advantage to fulfill the global demand for vegetable oils.
“During the period of 2018-2022, Indonesia’s export volume and value of palm oil products increased by 20.18%. Considering all of the facts, the projected increase of global population and global demand for vegetable oils in 2050 will become a golden opportunity for Indonesian palm oil industries to increase their global market share,” he said.
In 2022, Indonesia’s export value of CPO and derivative products reached US$41.32 billion or an increase of 11.01% if compared to that in 2021 at US$37.22 billion. Unfortunately, the increase of export value was not accompanied by the increase of export volume.
The increase of export value was caused by price fluctuations at the global market of vegetable oils, while the export volume during the last five years (2018-2022) tended to be stagnant. “The export volume of CPO and its derivative products during the last five years (2018-2022) tended to stagnate, as it was only corrected slightly at 0.08%,” he said.
Source: Sindonews.com
