Future of the Most Versatile Food Oil May Lie in Latin America

  • Palm oil yields in region can be almost double Southeast Asia
  • Growers are focusing on traceability of their supply chains
With elevated yields and the capacity to appeal to a wide customer base, free from deforestation concerns, Latin America is emerging as a new frontier for palm oil, increasing competition particularly in Europe.Source: Bloomberg
Lock
This article is for subscribers only.

The world is facing a growing shortage of its most versatile edible oil. The solution may lie with emerging producers half a world away from Southeast Asia’s vast palm oil plantations.

In Malaysia and Indonesia, which today account for the lion’s share of output, the aging trees carpeting much of the region are becoming less productive. Meanwhile, laborers are increasingly scarce and controls on land clearing have tightened, making it harder to replant.