Africa’s palm oil sector to see prices falling in 2023 as output rises
23/03/2023 (North Africa Post) - Although palm oil production has been linked to environmental damage and human rights abuses, it remains an important industry providing jobs and contributing to economic growth in several countries in Africa.
The global palm oil market size reached US$53.1bn in 2022 and looking forward, the market is expected to reach US$67.6bn by 2028, exhibiting a CAGR of 4.11% during 2022-2028, according to the recent study titled “Palm Oil Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2023-2028”. Indonesia is the largest producer of palm oil, followed by Malaysia and Thailand, with several other African and South American countries also producing significant amounts. The production of palm oil has resulted in devastating environmental damage and human rights abuses, despite providing income to rural communities in poorer nations, notably in Africa.
Africa’s top producers, led by Nigeria, may see a marginal rise in production in 2023 just as global demand is forecast to rise, with China relaxing its Covid-19 restrictions and India increasing imports. China and India are the world’s biggest palm oil buyers. Global supplies are expected to tighten over the next six months as palm oil remains at a large discount compared with competing soft oils, but stocks are likely to recover towards the end of 2023, she said. The top 10 African countries producing palm oil are Nigeria, Cote d’Ivoire, Cameroon, Ghana, Congo (Kinshasa), Sierra Leone, Angola, Guinea, Liberia, and Senegal. With a production of 1.4 million metric tons, Nigeria is the fifth-largest producer of palm oil in the world and the top producer in Africa. It is followed by Cote d’Ivoire that produced 600,000 metric tons of palm oil in the latest estimates. For both countries, palm oil is one of their main agricultural products, and their governments are investing in expanding the industry.