In light of the recent announcement from Indonesia, that the country will implement a wider export ban on palm oil, AAK AB (publ.) would like to make the following statement.
In the shorter term, the company’s needs are covered. Should this become a more prolonged situation, it would become a problem for the global food supply chain, including AAK. But as Indonesia’s palm oil production far exceeds local demand, AAK does not believe that the situation will continue for a longer period of time.
AAK buys roughly 20 percent of its total oil volumes from Indonesia.
Update:
On May 19, 2022, Indonesia announced that the palm oil export ban will be lifted as of May 23, 2022.
