We are into the world cooking oil crisis. Friends in the world wherever you are right now be prepared. You are entering a difficult economic period, symptoms of rising inflation and declining purchasing power have become a symptom of the world. And Germany and other European countries have felt the impact of the heavy economic period due to the war.
But let's talk about things in a little more detail about cooking oil or cooking oil from world geopolitics. We start from Indonesia. Indonesia as the largest palm oil-producing country in the world blocks palm oil exports because of the effects of palm oil entrepreneurs playing with the bureaucracy, exporting more than domestic market needs, exceeding domestic market needs domestically because it is driven by a desire to get rich quick and its officials also conspired with the government. Oligarchy, then there is a scarcity of cooking oil in Indonesia.
The people are angry and the next action to save the names of high-ranking officials is now they are blocking the way for palm oil shipments around the world, this no export has made the world panic, we all know that two sunflower oil-producing countries are currently at war, there are also other cooking oils such as vegetable oil. Made from soybeans or soybean oil, but currently, they are facing problems with the extreme climate being too hot in recent years, causing many droughts in their country's land which has caused many crop failures in several countries, also canola oil is experiencing the same problem.
The question is How do you get cooking oil with all those problems in the world? Indeed, not all dishes require cooking oil, but it is still necessary, even if you eat prayer, it is best if you pour a little olive oil on the dressing or mayonnaise. There is a little cooking oil everywhere in every main dish when baking, sauteing, and even in flour for cooking the pizza uses cooking oil and currently, the supply of cooking oil is starting to be limited.
What's your second plan? Should we increase the stock of cooking oil at home? So far, cooking oil worldwide, which has increased by 23 percent in price in Indonesia, is even higher, we will detail the root of the problem. Ukraine exports 5.4 million tons of flower oil per year and fulfills almost 50% of the world's sunflower oil needs because it is currently at war and there is no supply from Ukraine for sunflower oil.
Russia is also a provider of sunflower oil, about 25% of the world's needs and Russia is currently under economic sanctions. We are going to Canada now, as the largest country that produces Rapeseed oil, Canada is being affected by extreme weather so domestic production has fallen by 25 percent.
Then we go to Argentina, Brazil, and Uruguay as soybean oil-producing countries and these countries are struggling because of severe drought problems so their country production has fallen by more than 30 percent in the last two years.
Malaysia, the second-largest palm oil producer, lacks labor in oil palm plantations, resulting in reduced production. To add to the complexity of the world, Indonesia throws gasoline in the middle of the fire, Indonesia as the largest palm oil producing country prohibits the export of palm oil. Indonesia is the producer of a third of cooking oil exports or 30 million tons per year.
The biggest importers of Indonesian Palm Oil are India and China. India even depends on more than 50% of its cooking oil needs from Indonesia, where India is the world's largest user of cooking oil, which is 13 million tons per year, 60% of which is palm oil, 25 percent is soybean oil and the remaining 12 percent is sunflower oil and the rest are other types of oil, such as olive oil, for example, if calculated per person, India needs 19 kg of cooking oil or cooking oil per year, Indonesia can meet more than 50%, then Malaysia 30% It is estimated that India will experience the effects of a cooking oil shortage and limited supplies will make cooking oil prices rise close to 30% and will bring inflation to one percent in India.
Indonesia being able to make India inflation, this proves that Indonesia is a global player from the start, Indonesia's destiny is to become a big country as a whole world, now the price of palm oil has increased by 55% in the American market, soybean prices have increased by 27, Rapeseed Oil has increased by 50% in Europe also America and all of this is going to get worse in the future, so as a consumer what should you do? Do you buy a lot of stock cooking oil to keep at home? because in Western Europe at this time all cooking oil, Sunflower Oil, and Rapeseed oil, olive oil, can only buy no more than two bottles of cooking oil per person because they are already limited.
There is another possibility, where 15% of cooking oil is used as fuel at this time, formerly to lower the price of gasoline where the price of cooking oil as a counterweight, now it is much more expensive so this will make the world will lack 15% of the need for oil as fuel, and we can see how dire all this is the chain effect is technically no way to increase production and in short, this is geopolitics hitting the world's households.
#Geopolitics
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