InfoSAWIT, JAKARTA -The market phenomenon in European Union in the midst of 1990s was always interesting to discuss. The needs of vegetable oil in the continent always increased from the outside producers. The high demands on vegetable oil from European citizens directly open the chance to other kinds of vegetable oil, such as, crude palm oil (CPO) and its derivatives.
In the midst of 2000s, the vegetable oil markets in the continent were interesting too. The needs of vegetable oil, namely CPO and its derivative increased more. Though the consumers demanded it more, but the opposite phenomenon increased too by the raising negative accusations about palm oil told by the environmental and social activists in European Union.
The negative accusations about palm oil derived from their high demands on CPO derivative products for they could be used to vegetable oil derivative industries that have been operating for tens of years by using the materials from the domestic countries.
Of course, the partiality of vegetable oil downstream industries in European Union increased the demands on CPO and its derivative products. Most of the industries made CPO and its derivatives as the alternative materials.
It is normal that the European Union Parliament – the members were mostly from social and environmental activists – criticized CPO and its derivatives because the European citizens who work as plantation farmers and produce vegetable oil, have stagnant demands.
As a description, when the demands from the European citizens and from vegetable oil downstream industries increased but the domestic vegetable oil production is limited, there would be expensive price of the commodity (vegetable oil), such as, soybean. This would influence the farmers’ economy.(Kris Hadisoebroto/Board of Editorial of InfoSAWIT/Palm oil Downstream Industrial Observer)
For more, please readInfoSAWIT,May 2018