Vegetable oil prices to spike in SA amid Russia, Ukraine conflict
Updated | By JacarandaFM News
South African consumers need to prepare for an increase in the price of vegetable oil due to the ongoing war between Russia and Ukraine.
South Africa relies on South America for vegetable oil and fats.
Commercial director at Southern Oil (SOILL) Morné Botes says the war has put pressure on supplies – meaning costumers will end up pay more.
“The total RSA oil seed production is expected to increase by 7% year on year, driven strongly by the sunflower crop. Sunflower stock to usage has declined in the last few months, leading to more reliance on imports from EU. The impact of the crude oil price is going to have an impact on world shipping costs, and if the war continues the import/export costs is going to be driven upwards.
“The demand for all oils and fats is growing, while supply both locally and internationally is under pressure. Pricing is going to be seen moving anything from 10-30% within the next month, and the sustainability of the levels will be determined based on the international macro-economic conditions," says Botes.
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