×
Newsmax TV & Webwww.newsmax.comFREE - In Google Play
VIEW
×
Newsmax TV & Webwww.newsmax.comFREE - On the App Store
VIEW
Tags: palm oil | inflated costs | chocolate

Chocolate Prices Expected to Surge

combination of swiss chocolate
A rise in palm oil prices could inflate costs for restaurants to confectionary, and cosmetic manufacturers. (Dreamstime)

Wednesday, 12 May 2021 06:52 AM

The meteoric rise in palm oil prices to record levels is poised to inflate costs for everyone from restaurants to confectionery and cosmetic manufacturers, and could potentially change consumption patterns.

The world’s most consumed edible oil is found in products as diverse as chocolate, pastries, soaps, lipstick and biofuel, and is widely used in Asian restaurants. The tropical oil has surged more than 120% in the past year and burst through 4,500 ringgit ($1,091) a ton to a record on Wednesday.

“The rise in prices to all-time highs is bound to affect consumer habits,” said Gnanasekar Thiagarajan, head of trading and hedging strategies at Kaleesuwari Intercontinental. “Consumption is expected to go down, and if this uptrend in prices is maintained, there could be a shift in food habits that could altogether change food preferences.”

The world’s top importer is India followed by China, and the largest producer and user is Indonesia. In Europe and the U.S., the oil faces headwinds from consumers over concerns that its cultivation causes deforestation and harms animal habitats. The globe’s top confectionery and cosmetic companies have sought to ensure that the palm oil they use is sustainably produced.

Consumption in India is especially at risk because of a drop in demand outside the home and the impact of the world’s worst Covid-19 outbreak, according to Atul Chaturvedi, president of Solvent Extractors’ Association. The country is a very price-sensitive market and high prices are hurting demand, he said.

Still, those companies wanting to shift out of palm to other oils may find opportunities limited, and they’ll be facing higher costs whichever option they choose. Soybean oil, the second-most consumed oil, is up 150% in the past year, and sunflower oil prices from Ukraine have more than doubled. It may be better to stick to palm after all.

© Copyright 2021 Bloomberg News. All rights reserved.


StreetTalk
The meteoric rise in palm oil prices to record levels is poised to inflate costs for everyone from restaurants to confectionery and cosmetic manufacturers, and could potentially change consumption patterns.The world's most consumed edible oil is found in products as diverse...
palm oil, inflated costs, chocolate
301
2021-52-12
Wednesday, 12 May 2021 06:52 AM
Newsmax Media, Inc.
Join the Newsmax Community
Register To Comment Login To Comment
Please review Community Guidelines before posting a comment.
 
TOP

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved
NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved