Palm oil no longer world's cheapest edible oil

Palm oil has lost its position as the world's cheapest edible oil, thanks to shrinking output from the biggest growers and plentiful supply of the main alternative.

The tropical oil, which traded at a discount of US$782 a tonne to soya oil as recently as November 2022, is currently commanding a rare premium. In contrast to soya, sunflower and rapeseed crops, palm is harvested year-round and needs less land to produce, meaning it is usually cheaper.

Indonesian and Malaysian palm plantations, which account for 85 per cent of global supply, are facing challenges.

Smallholders are reluctant to cut ageing trees and replant as it can take four to five years for new trees to bear fruit, compared with around six months for soya beans.