Amid concerns that Indonesia's restrictions on palm oil exports continue to disrupt the supply of edible oil, the government has decided to regularly check the supply and demand situation with the industry and strengthen supply chain management so that consumers do not have any inconvenience in purchasing edible oil.
The Ministry of Agriculture, Food and Rural Affairs held a meeting to check the supply and demand situation of cooking oil with five edible oil suppliers including CJ CheilJedang, Lotte Food, Sajo Daerim, Nongshim, and Ottogi at the Korea Food Industry Association in Seocho-gu, Seoul today (18th) and confirmed this policy.
As the problem of edible oil supply is directly related to the stabilization of livelihoods of small and medium-sized restaurants such as chicken houses and Chinese restaurants and small business owners, the Ministry of Agriculture, Food and Rural Affairs is closely monitoring the supply and demand situation of cooking oil in cooperation with companies, and at the same time purchasing more than necessary due to price instability. We decided to manage it so that it could be alleviated.
The Ministry of Agriculture, Food and Rural Affairs decided to hold public-private meetings at least once a week to share edible oil supply and demand information.
Domestic edible oil suppliers said that the stock of edibles is stable, about 2 to 4 months' worth.
The Indonesian government restricted palm oil exports last month, but the industry explains that there is currently no major disruption in supply and demand because domestic companies mainly use Malaysian palm oil.
The industry explained that it plans to introduce 33,000 tons (tons) of palm oil, which is the level of the average year, in May and June of this year, and that the quantity can also be imported normally as agreed in the second half of the year.
Each company also said that soybean oil, which is used the most for business and home use, is being imported without any setbacks from the United States and Argentina, and the introduction of soybean, an edible oil material, has been smooth.
In addition, he introduced that there is no problem in introducing canola oil and olive oil, which are mainly used in homes and chicken franchisees (franchise), and in the case of sunflower seed oil, it has secured alternative supply lines to Spain and Argentina after the crisis in Russia and Ukraine.
A supplier official said at a meeting today, "As there is no problem with the domestic supply of cooking oil, there is a low probability that consumers will have a problem in purchasing cooking oil."
They also analyzed that the recent sharp increase in orders for commercial canned cooking oil (18L) and household large-capacity (1.8L), supplied through distribution agencies, was “caused by some distribution networks that were concerned about the rise in cooking oil prices.” .
The Ministry of Agriculture, Food and Rural Affairs will also discuss ways to stabilize the supply chain with retailers such as large marts.