Some of Ireland’s favourite snacks like Oreos, Doritos, Nutella, and even Coca-cola products could soon see a major increase in price after Indonesia expanded its export ban on palm oil.
The ingredient is vital in the production of a vast array of the world’s packaged goods and is currently the most widely consumed vegetable oil on earth.
While there are many ethical issues associated with the extraction process of palm oil and its effects on the world’s rainforests, it is virtually impossible to avoid unless you stop buying all processed foods, as well as everything from lipstick and shampoo to sliced bread, cookies, chocolate, pizza dough, instant noodles, and even ice cream.
On Wednesday, the government in Jakarta expanded its ban on the export of palm-based cooking oil to cover all exports to all countries.
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This means it is not only banned in its purest form, but the move also includes refined palm oil products that are used in food and other consumer products, like cosmetics.
Indonesia supplies more than half of the global supply of palm oil and according to Tobin Gorey, a director of agricultural strategy, this ban is “one of the biggest acts of agriculture nationalism so far during this surge in food prices."
The world’s largest consumer goods companies, including Unilever, Procter & Gamble, Ferrero, and Nestle all use massive quantities of palm oil every year, and so sourcing an alternative could see consumers paying the price.
These increases will join the recent inflation in costs across most sectors in Ireland due to the rising price of importing goods.
Groceries, electricity bills, fuel, and other household bills have seen hikes in recent months, and this latest news could see your weekly shopping bill increase further.
Global food prices shot up 28% last year due to supply chain disruptions, according to the United Nations' Food and Agriculture Organization, and while the Palm Oil ban is likely to see companies search for alternatives, James Fry, chairman of consultancy LMC International, told CNN Business that production of alternatives “is unlikely to ramp up enough to meet demand at short notice.”
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