Aboissa participated in POC 2025 (Palm Oil Conference), held in Kuala Lumpur, one of the world’s most influential events for the vegetable oils sector. Bringing together experts, traders, analysts and industry leaders, the meeting provided valuable insights into the structural challenges and opportunities that will shape the market in the coming months.
The global production of Palm oil should recover in 2025, especially in Indonesia. However, volatility remains a concern, driven by factors such as the advancement of B40 biodiesel in Indonesia and political uncertainties associated with the elections in the US and in Indonesia itself.
Regulation, traceability and operational challenges
The European Regulation on Deforestation (EUDR) continues to have a direct impact on palm oil and palm kernel oil exporters. Increased requirements on traceability and sustainability are increasing operational costs, especially for companies that want to maintain competitive access to the European market.
The growth of biodiesel and Sustainable Aviation Fuel (SAF) has been identified as one of the main drivers of demand for vegetable oils. Indonesia is moving forward with its biodiesel program, while other countries — such as the Philippines — are increasing their use of coconut oil as a feedstock for biofuels.
Commodities and price movement
In 2024, the high cost of palm oil favored the consumption of alternatives such as soybean and sunflower oil. However, palm oil prices are expected to decline in the second half of 2025, which could restore its competitiveness against other oils.
Global vegetable oil production is expected to grow by just 2.1 million tonnes in 2024/25 — less than expected. Therefore, with tight stocks and firm demand, the outlook suggests that prices should remain supported in the short term.
Vision of the future
The POC 2025 made it clear: the vegetable oils sector is facing a transition phase. This new era is marked by regulatory tensions, energy transformation and a new pace of global consumption. For companies operating in this market, investing in data intelligence, following global trends and seeking sustainable differentiators will be increasingly decisive.
At Aboissa, we are attentive to every movement. We continue to closely monitor the international scenario to offer our clients not only efficient negotiations, but also strategic vision in an increasingly dynamic market.
