Palm oil – the worlds most consumed edible oil prices have skyrocketed as the COVID-19 pandemic has continued to tremendously impact the world economy. Malaysia is responsible for 33% of the worlds palm oil exports with an average yield of 7.85 tonnes per hectare of palm fruit bunches. This yield has reduced to 7.15 tonnes between January and June this year. Indonesia, the world’s top producer of palm oil, has suffered closures of palm oil mills due to coronavirus restrictions. These oil mills convert palm fruit into crude palm oil ready for exportation.
The post-pandemic effects have continued to worsen the economy, particularly in food and agriculture – the worlds least automated industries. Recruiters have been hiring hard, but the process has been more challenging as migrant workers who have returned home are not allowed back in Malaysia due to COVID-19 restrictions enacted in March 2020. The shortage of workers forces some employers to raise wages which threaten to push food prices even higher. According to the United Nations’ Food and Agriculture Organization (FAO), their Food Prices index averaged at 127.4 points in August 2021, is up 3.1% from July and 32.9% from the same month in 2020.
Some plantation managers recorded that their plantations have suffered a range of impediments, including pest infestations, labour shortages and severe weather conditions. It is challenging to maintain such extensive lands when missing more than a third of the workforce. These factors bring the stock levels of some of the worlds most consumed oils – rapeseed, soybean, palm, and sunflower oil – to their lowest levels in a decade. “The FAO Vegetable Oil Price Index reached a five-month low, declining 1.4% from June, as lower prices for soy, rape and sunflower seed oils more than offset rising palm oil values.” (FAO, 2021).
This coronavirus pandemic induced labour crunch has forced field managers to find creative ways to upkeep their land.
HOW CAN YOU HELP?
Food security is a sensitive issue in many countries, and it is no news that the global pandemic has weakened the food supply chain. It is apparent that there is no one solution to this disruption, however, as a collective, we can make minor changes to improve the current climate.
It is time to eat local, support our local farmers and take the pressure off the global supply chain. Try your best through proper meal planning and food purchase to curb food waste. Every little reduction helps. Using The Global Food Loss and Waste Tracker app will help you with:
- Nutritional guidance
- Food Surplus Action
- Cost Performance
- Global Move
- Reduction Tips
The Global Food Loss and Waste Tracker can be downloaded from the Google Play Store or at https://intellidigest.com/products-3/food-waste-tracker.