Malaysian Palm Oil Exports Performance to Americas Region
(January – May 2023)
A Review on MPO Export Performance

Table 1 : A Review on MPO Export Performance (MT)

During January-May 2023 period, total Malaysian palm oil export to the Americas region recorded a total volume of  82,143 MT against 70,610 MT which was registered during the same period of 2022 (refer to Table 1). This represents an increment of 11,533 MT or by 16.3%. The increase in MPO export to the Americas region is largely attributed to higher export to the biggest buyer in the region, the United States (US). During Jan-May 2023 period, total MPO exports to US went up to 56,373 MT from 46,522 MT recorded during the same period of last year (refer to Table 1). Part of the reason for the higher imports by USA was after US CBP lifted a two-year import ban on palm oil and palm products produced by Sime Darby Plantation (SDP). SDP was previously blocked by US CBP from entering the US over suspected abusive labour practices. In February 2023, US CBP determined that SDP products were no longer produced with forced labour.

Imports of palm oil by products

In terms of product breakdown to the Americas region, the main product exported to the region during Jan-May 2023 period is RBD palm oil accounting for 37% of total exports (refer to Chart 2 and table 3). This was followed by RBD palm stearin (19%) and RBD palm olein (15%).

Chart 2: Breakdown of Total MPO Export to the Americas Region

Source : MPOB

Table 3: Breakdown of Total MPO Export (MT) to the Americas Region

Malaysian palm oil imports by USA

In terms of product breakdown to the US, RBD palm oil, RBD palm stearin and RBD palm olein are the top three products exported to US comprising almost 65% of the overall MPO export to US (refer to table 4). Export of RBD palm oil increased by 68.4%, RBD palm stearin increased by 9.6% while RBD palm olein increased by 98.4%.

Other than palm oil, Malaysia also exported palm-based oleo, palm kernel oil, finished products and biodiesel to US (refer to table 5).

Table 4: Breakdown of Total MPO Export (MT) to USA

Table 5: MPO Export to Canada by Type of Products

The US Environmental Protection Agency (EPA) has finalized regulations on the amount of renewable fuel that US refiners must annually blend with gasoline and diesel over the next three years. The final rule requires refiners to blend 20.94 billion gallons of renewable fuel in 2023, up from 20.63 billion gallons required under the 2022 renewable volume obligation (RVO). For 2024 and 2025, the total renewable fuel obligation is raised to 21.54 billion gallons and 22.33 billion gallons. This new blending requirements however, is lower than what was proposed and did not meet the expectation of US biodiesel industry. There will be surge in production as waves of investment in manufacturing facilities has kicked off in the US. Clean fuel producers, oilseed processors, fuel distributors and marketers in the US had made significant investments to grow the industry rapidly over the next several years. Ample supplies of vegetable oils resulted from large overcapacities will lead to low major vegetable oil prices including soybean oil and palm oil in the next few years.

Canada is another important market for MPO in this region and the total MPO export increased by 20.4% to 5,735 MT during Jan-May 2023 period from 4,761 MT registered during same period last year (refer to Table 6). The main export has been RBD palm olein accounting for 38.8% of total MPO import by Canada. Second largest import product is double fractionated RBD palm olein at 1,592 MT, registering a rise by 81.8% on year-to-year basis, followed by PFAD at 1,500 MT. Palm-based oleo is another product group majorly exported by Malaysia to Canada (refer to table 7).

Table 6: Breakdown of Total MPO Export (MT) to Canada

Table 7: Malaysian Oil Palm Products Export to Canada by Product Group

For more info please contact Mrs Nur Adibah
Email : nuradibah@mpoc.org.my