• Is palm oil a sustainable option in Latin America?
  • In the light of environmental and social sustainability concerns in relation to palm oil from Southeast Asia, several Latin American countries present palm oil production in their region as a more sustainable option. In the light of these concerns, Latin American palm oil is seen as an opportunity to open export markets.
  • What are the risks associated with Latin America palm oil?
  • Companies involved in the Latin America palm oil supply chain face various ESG (environmental, social, governance) risks. These risks include stranded asset risk, market access risk, and financing risk for plantations. Traders are particularly exposed to market access risk, financing risk, and reputation risk.
  • Which countries produce the most palm oil in Latin America?
  • Guatemala is the Latin American country with the highest palm oil productivity, with an average yield of 5.0 MT/hectare (ha) across the last three years. Colombia, Costa Rica, Brazil, and Honduras have average yields between 3.4 and 3.0 MT/ha. The different Latin American countries show considerable variations in palm oil productivity.
  • What is the future of palm oil production in Latin America?
  • Palm oil production in several Latin American countries has further growth potential for domestic and regional consumption, as well as export markets. Global production of palm oil is expected to further increase, from around 80 million MT in 2021 to 90 million tons in 2030.
  • Is palm oil a good choice for cooking in Latin America?
  • Palm oil is very suited for frying, which is an important part of Latin America¡¯s cooking culture. However, it is essential to consider the social and deforestation issues associated with palm oil production in Latin America. Several countries, including Brazil and Colombia, are promoting the use of biodiesel as part of CO2 emission reduction goals and aims to reduce dependency on fossil fuel imports. (Source: Trademap, 2021)
  • Why do people complain about oil palm expansion?
  • People express concerns about oil palm expansion due to social and cultural loss risks, which can lead to operational, stranded land, and market access issues. These conflicts are widespread in Latin American countries, often exacerbated by the insecure land rights situation.