The End of Cheap Palm Oil? Output Stalls as Biodiesel Demand Surges
Palm oil production growth has stagnated at 1% annually over the past four years due to slowing expansion by Indonesia and Malaysia, while biodiesel demand is driving up vegetable oil prices. The shift towards biodiesel in Indonesia, which aims to curb fuel imports and make palm oil more valuable, is making cooking oil costlier. Global demand for biofuels is expected to continue driving up the price of vegoil.
- As the world becomes increasingly dependent on biofuels to reduce carbon emissions, the impact of these shifts on local food systems and economies will only become more pronounced.
- Can policymakers balance the economic benefits of a biodiesel-driven palm oil boom with the potential social and environmental costs that come with such drastic changes in global commodity markets?