Wilmar International

"Wilmar International, the world's largest listed planter, and Mewah International, a $570 million edible oils processor - both listed in Singapore - are driving sales to Iran on long-term contracts, with Middle Eastern trading sources reporting premiums of up to $30 a tonne to the cash benchmark... Wilmar and Mewah dominate the trade with Iran where demand for high-value refined palm olein, used in cooking oil, can reach 500,000-700,000 tonnes a year. Wilmar sells to Saudi Arabian food company Savola, which buys palm oil to feed its edible oil processors in Iran, three Middle Eastern trading sources told Reuters. They said Wilmar demands a premium of $20-$30 per tonne to cover potential payment delays and interest charges. Wilmar said it does not comment on specific contracts. Savola did not respond to requests for comment. 'Savola is a one woman man. It sticks to one palm oil company to supply its refineries and it's Wilmar for the past few years,' said a Dubai trading source close to Savola... Planters who have sent cargoes to Iran with Mewah include subsidiaries of IOI Corp, Kuala Lumpur Kepong and a Malaysian unit of Wilmar, cargo surveyor documents show. Officials at those companies declined comment. Shipping documents obtained by Reuters show Wilmar exported at least 114,000 tonnes of refined palm oil to Iran from the Indonesian island of Sumatra alone last year. In January of this year, Wilmar shipped another 10,700 tonnes to Iran from Sumatra. 'Wilmar doesn't do high stakes gambling. So it has taken a corporate guarantee from Savola's head office in Saudi Arabia,' said a Southeast Asian trading source who has done deals with Savola. 'It's become standard practice.'... With more than half a million hectares of oil palm estates in Indonesia and Malaysia, Wilmar makes most of its sales, and profits, from trading with India and China." (Reuters, "Beyond sanctions, Iran squeezed by higher edible oil costs," 4/29/2013)