Malaysia, the second global giant palm oil producer, is keen to take advantage of an ongoing edible oil crisis in Europe to regain the market after being long shunned by buyers following human rights and environmental concerns.
Zuraida Kamaruddin, Malaysia’s Minister for Plantation Industries and Commodities, said in the government’s statement, “will not want to waste a good crisis”.
The European Union (EU), the world’s third-biggest palm buyer, uses the product to manufacture industrial goods such as lipsticks and noodles. However, it has ruled to phase out palm oil-based biofuels by 2030.
European’s plan to phase out palm oil biofuels by 2030 has undoubtedly backlashed that some companies in Europe that announced their commodities ‘palm oil-free” have been compelled to return using the product due to a global edible oil shortage triggered by the Russia-Ukraine war and Indonesia’s ban on palm oil exports.
As edible cracking heads of EU leaders, wheat is another major threat to EU countries as the war escalates.
The Russian invasion has disrupted Ukrainian and Russian wheat and grain production, and a major point of worry for EU decision-makers is how to keep people fed in the months and years to come. Ukrainian and Russian wheat exports make up 30% of the world’s supply.
Another imminent crisis in the EU food industry is milk. The world’s dairy industry is on the verge of collapse following an adverse scarcity of wheat and fertilizer. Russia and Ukraine account for more than a quarter of world wheat used as cow feed.
New Zealand, which controls 35 per cent of dairy exports, has faced tremendous difficulties in its milk production and exports due to a lack of cow feed that exerts more pressure EU’s milk market.
At the same time, the dual. Russia and Ukraine are leading exporters of fertilizers, leading to a dramatic soar in dairy products and food in general.
The wheat, edible oil and milk crisis in the EU is not exclusive to other countries globally, as many African countries, including Benin, Egypt, Sudan, Madagascar, and Burundi, are almost entirely, or in some countries, cases exclusively, dependent on Ukrainian grain.
More than 31 million people are expected to need urgent food assistance in the Sahel region in West Africa due to a multi-year long drought. But this number will, in all likelihood, become much higher.