InfoSAWIT, JAKARTA - As a matter of fact, South Africa produced 256 thousand tons of sunflower oil, 222 thousand tons of soybean oil in 2019. But according to Malaysian Palm Oil Council (MPOC), the vegetable oil consumption in the country was higher than its production. It should be fulfilled by importing vegetable oil from Emirate Union and Argentine.
Besides importing soybean and sunflower oil, South Africa also imports palm oil from Malaysia and Indonesia. Palm oil reached 54% of the fat and oil imports in 2019.
In the Covid-19 pandemic, fat and oil trade in the country has no big issue though the operational in the port gets slower. The hotel, retail, and café sectors are in trouble because of lockdown which forces the tourism sector to stop.
As the impact, the big scale purchase from the three sectors was negative in cities. But as the change, the local industries grow because of the increasing housing consumption and food products as the increasing demands from the low class society.
Though it is still in pandemic, it does not mean that South Africa is not potential to trade palm oil from Indonesia.
Indonesian Palm Oil Association (IPOA) revealed that the diplomacy between Indonesia and South Africa has been running since August 1994 and the two countries are the members of World Trade Organization and G20.
Since 2011, South Africa becomes the biggest trade partner of Indonesia in Africa within the market share reaching 22,18% of the total trade between the two countries. The trade increases stable in the last few years and would be potential to increase. (T2)
For more, please read InfoSAWIT, November 2020
Please go to: http://store.infosawit.com/