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Ireland's favourite snacks could cost even more in months to come amid palm oil export ban

The government in Jakarta expanded its ban on the export of palm-based cooking oil to cover all exports to all countries

[Ireland's favourite snacks to grow even more expensive amid palm oil export ban]

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Ireland's favourite snacks to grow even more expensive amid palm oil export ban(Image: REX/Shutterstock)

Some of Irelands favourite snacks like Oreos, Doritos, Nutella, and even Coca-cola products could soon see a major increase in price after Indonesia expanded its export ban on palm oil.

The ingredient is vital in the production of a vast array of the worlds packaged goods and is currently the most widely consumed vegetable oil on earth.

While there are many ethical issues associated with the extraction process of palm oil and its effects on the worlds rainforests, it is virtually impossible to avoid unless you stop buying all processed foods, as well as everything from lipstick and shampoo to sliced bread, cookies, chocolate, pizza dough, instant noodles, and even ice cream.

On Wednesday, the government in Jakarta expanded its ban on the export of palm-based cooking oil to cover all exports to all countries.

READ MORE: Ireland's newest pub opens with pints as cheap as 3 and buzz of excitement locally

This means it is not only banned in its purest form, but the move also includes refined palm oil products that are used in food and other consumer products, like cosmetics.

Indonesia supplies more than half of the global supply of palm oil and according to Tobin Gorey, a director of agricultural strategy, this ban is one of the biggest acts of agriculture nationalism so far during this surge in food prices."

The worlds largest consumer goods companies, including Unilever, Procter & Gamble, Ferrero, and Nestle all use massive quantities of palm oil every year, and so sourcing an alternative could see consumers paying the price.

These increases will join the recent inflation in costs across most sectors in Ireland due to the rising price of importing goods.

Groceries, electricity bills, fuel, and other household bills have seen hikes in recent months, and this latest news could see your weekly shopping bill increase further.

Global food prices shot up 28% last year due to supply chain disruptions, according to the United Nations' Food and Agriculture Organization, and while the Palm Oil ban is likely to see companies search for alternatives, James Fry, chairman of consultancy LMC International, told CNN Business that production of alternatives is unlikely to ramp up enough to meet demand at short notice.

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