Malaysia Sees Asia, Africa Taking Palm Oil Europe Doesn’t Want
- EU deforestation rules set to hit imports from top growers
- Malaysia says smallholders will find it difficult to adapt
EU imports of palm, used in everything from ice cream to shampoo and fuel, already dropped about 5% last year.
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Malaysia, the second-biggest palm oil producer, expects Asia and Africa to soak up any supply that becomes available from export disruptions to Europe after the bloc’s new deforestation laws come into effect.
The European Union has put in place rules that stop products causing forest destruction from being sold in shops and supermarkets. Most companies have until the end of the year to comply with the EU Deforestation Regulation, which covers commodities from palm oil to cocoa and coffee. Critics say the rules especially punish smaller farmers.