EUROPE & CENTRAL ASIAN REGIONS
Malaysian Palm Oil Exports Performance
(January – December 2023)
Regional Summary
Europe and Central Asian regions accounted for 12% of the total Malaysian palm oil exported in January – December 2023. Palm oil was the major commodity exported to the region with a market share of 40% or 1,143,530 MT of the total Malaysian palm oil and products exports.. The remaining imports are composed of palm-based oleochemicals (21%), other palm products (20%) palm kernel oil (8%), biodiesel (5%), palm kernel cake (3%), and finished products (2%).
| Table 1: Malaysian Palm Oil and Palm Product Export to Europe & Central Asia | ||||
|---|---|---|---|---|
| Products | Jan – Dec 2023 | Jan – Dec 2022 | Change (MT) | Change (%) |
| Palm Oil | 1,143,530 | 1,545,278 | (401,747) | (26.00) |
| Palm-Based Oleo | 596,525 | 455,575 | 140,950 | 30.94 |
| Other Palm Products | 565,947 | 272,204 | 293,742 | 107.91 |
| Palm Kernel Oil | 231,442 | 263,685 | (32,244) | (12.23) |
| Biodiesel | 146,509 | 238,528 | (92,019) | (38.58) |
| Palm Kernel Cake | 90,970 | 82,228 | 8,742 | 10.63 |
| Finished Products | 67,994 | 52,303 | 15,691 | 30.00 |
| Grand Total | 2,842,917 | 2,909,801 | (66,884) | (2.30) |
Featured Analysis
- Europe & Central Asia regions imported a total of 2,842,917 MT of palm oil and palm products, valued at RM 13.5 billion or USD 2.9 billion between January to December 2023.
- Netherlands, Italy, Spain, Sweden, Germany, Belgium, Uzbekistan, Denmark, Russia and United Kingdom are the top 10 importers of Malaysian oil palm products in Europe and Central Asian regions within this period, importing 2,677,451 MT and representing 94% of the total Malaysian exports into these regions.
- Exports of Malaysian oil palm products to Europe in 2023 decreased by 3% as compared to the volume imported in 2022. Favourable crops of rapeseed and sunflower continue to contribute to a steady supply, leading to a reduced demand for palm oil in the region. However, demand for palm-based wastes such as palm oil mill effluent, used cooking oil, and sludge oil continues to increase, with major demand coming from Italy, the Netherlands, Spain and Belgium.
- Palm oil mill effluent, crude palm oil, and RBD palm stearin were three major components of Malaysian palm oil imported by the Europe region and these three products accounted for 35% of the total Malaysian oil palm products exported into the region.
- The export performance of Malaysian oil palm products into the Central Asian region for 2023 was promising with 75,026 MT, an increase of 25.5% Y-o-Y. Uzbekistan has surpassed its import of Malaysian palm oil in 2022, aided by the ease in logistics situation from China after restrictive COVID-19 curbing measures in the previous year, indicating a very strong demand from its industries.
- On 28 December 2023, the President of Uzbekistan had signed a decree to extend zero import duty measure on a number of food items including palm oil to 1 January 2025, which had been in force since June 2022 to curb the food inflation and tackle high commodity prices. This measure is expected to further bolster palm oil demand in the country throughout 2024.
Europe
Exports of Malaysian oil palm products to Europe in 2023 decreased by 3% as compared to the volume imported in 2022. An interesting dynamic has been observed for these major European markets. Records showed that Malaysia exported to 35 countries in the European region, of which 21 countries recorded an increment in imports. Italy, Germany and Denmark recorded increase of above 10,000 MT, with the countries collectively imported a total of 684,961 MT or an increase by 40.5% in 2023.
However, the increase in imports by the 21 countries was unable to offset the overall decline by major importing countries. Although the Netherlands remained the biggest exporting destination of Malaysian oil palm products, it retains a consistent decline in imports from Malaysia, with a significant decline of 15.7% Y-o-Y, importing a total of 1,366,227 MT in 2023. The United Kingdom also recorded a similar decline of 25.3% Y-o-Y, with an import volume of 40,159 MT. Sweden recorded an import of 129,165 MT from Malaysia, a decline of 8.1% Y-o-Y. Favourable crops of rapeseed and sunflower continue to contribute to a steady supply, leading to a reduced demand for palm oil in the region. However, demand for palm-based wastes such as palm oil mill effluent, used cooking oil, and sludge oil continues to increase, with major demand coming from Italy, the Netherlands, Spain and Belgium.
| Table 2: Malaysian Oil Palm Product Exports to Europe by Country | |||||
|---|---|---|---|---|---|
| COUNTRY | Jan-Dec 2023 | Jan-Dec 2022 | Diff (Vol) | Diff (%) | |
| 1 | Netherlands | 1,366,227 | 1,620,005 | (253,778) | (15.67) |
| 2 | Italy | 546,810 | 378,089 | 168,721 | 44.62 |
| 3 | Spain | 291,199 | 299,896 | (8,697) | (2.90) |
| 4 | Sweden | 129,165 | 140,521 | (11,355) | (8.08) |
| 5 | Germany | 88,848 | 70,973 | 17,875 | 25.19 |
| 6 | Belgium | 73,180 | 67,878 | 5,302 | 7.81 |
| 7 | Denmark | 49,303 | 38,430 | 10,873 | 28.29 |
| 8 | Russia | 41,992 | 41,839 | 154 | 0.37 |
| 9 | United Kingdom | 40,159 | 53,853 | (13,694) | (25.43) |
| 10 | Switzerland | 22,450 | 25,807 | (3,358) | (13.01) |
| 11 | Others | 118,557 | 112,738 | 5,820 | 5.16 |
| Total | 2,767,891 | 2,850,028 | (82,137) | (2.88) | |
Source: MPOB
Breakdown of Malaysian Palm Oil Export to Europe
Palm oil mill effluent, crude palm oil, and RBD palm stearin were the three major components of Malaysian palm oil imported by the region and these three products accounted for 35% of the total Malaysian oil palm products exported into the Europe region. Demand for waste-based palm oil products especially POME and sludge oil rose by a staggering 184% and 76% respectively, in account for their use as advanced biofuel feedstocks in the region, with strong demand for both products originating from Italy, Netherlands, Spain, and Belgium.
| Table 3: Breakdown of MPO into Europe Market (MT) | ||||
|---|---|---|---|---|
| Jan-Dec 2023 | Jan-Dec 2022 | Diff (MT) | Diff (%) | |
| POME | 415,520 | 146,358 | 269,162 | 183.91 |
| CPO | 352,646 | 605,699 | (253,053) | (41.78) |
| RBD PS | 192,690 | 204,544 | (11,855) | (5.80) |
| Biodiesel | 146,509 | 238,528 | (92,019) | (38.58) |
| CPKO | 133,431 | 134,626 | (1,195) | (0.89) |
| Medium Cut ME | 99,932 | 57,595 | 42,337 | 73.51 |
| RBD PO | 98,031 | 129,364 | (31,332) | (24.22) |
| RBD PL | 98,017 | 107,638 | (9,621) | (8.94) |
| Others | 1,231,115 | 1,225,676 | 5,439 | 0.44 |
| Total | 2,767,891 | 2,850,028 | (82,137) | (2.88) |
Source: MPOB
Figure 2: Breakdown of Malaysian Oil Palm Product Exports to Europe Jan-Dec 2023
Central Asia
The export performance of Malaysian oil palm products into the Central Asian region for 2023 was promising with 75,026 MT, an increase of 25.5% Y-o-Y. As with the previous months, Uzbekistan and Kazakhstan are observed to lead the highest palm oil import from Malaysia with 50,567 MT and 21,558 MT, respectively. Uzbekistan has surpassed its import of Malaysian palm oil in 2022, aided by the ease in logistics situation from China after restrictive COVID-19 curbing measures in the previous year, indicating a very strong demand from its industries. On 28 December 2023, the President of Uzbekistan had signed a decree to extend zero import duty measure on a number of food items including palm oil to 1 January 2025, which had been in force since June 2022 to curb the food inflation and tackle high commodity prices. This measure is expected to further bolster palm oil demand in the country throughout 2024.
| Table 4: Malaysian Oil Palm Product Exports to Central Asia | |||||
|---|---|---|---|---|---|
| COUNTRY | Jan-Dec 2023 | Jan-Dec 2022 | Diff (Vol) | Diff (%) | |
| 1 | Uzbekistan | 50,567 | 23,532 | 27,035 | 114.88 |
| 2 | Kazakhstan | 21,558 | 32,942 | (11,385) | (34.56) |
| 3 | Kyrgyzstan | 1,083 | 1,099 | (16) | (1.44) |
| 4 | Turkmenistan | 994 | 1,035 | (41) | (3.94) |
| 5 | Tajikistan | 824 | 1,164 | (341) | (29.26) |
| Total | 75,026 | 59,773 | 15,253 | 25.52 | |
Breakdown of Malaysian Oil Palm Product Exports to Central Asia
RBD palm oil, RBD palm stearin, and hydrogenated palm kernel stearin are the main Malaysian oil palm product components going into the region. These three accounted for 65% of the total Malaysian oil palm products imported by the region.
| Table 5: Breakdown of Malaysian Oil Palm Product Exports into Central Asian Market (MT) | ||||
|---|---|---|---|---|
| Jan-Dec 2023 | Jan-Dec 2022 | Diff (MT) | Diff (%) | |
| RBD PO | 39,006 | 14,358 | 24,648 | 171.67 |
| RBD PS | 5,586 | 12,417 | (6,831) | (55.02) |
| HPK Stearin | 4,695 | 3,485 | 1,210 | 34.72 |
| Soap Noodles | 3,058 | 2,656 | 402 | 15.14 |
| Cooking Oil | 2,998 | 1,574 | 1,423 | 90.41 |
| RBD PL | 2,739 | 5,055 | (2,316) | (45.82) |
| Shortening | 2,694 | 4,498 | (1,804) | (40.11) |
| Soap Chips / Flakes | 1,795 | 1,662 | 133 | 7.99 |
| Others | 12,456 | 14,068 | (1,612) | (11.46) |
| Total | 75,026 | 59,773 | 15,253 | 25.52 |
Source: MPOB
Figure 3: Breakdown of Malaysian Oil Palm Product Exports to Central Asia Jan-Dec 2023
For more info please contact Mr Fazari: fazari@mpoc.org.my
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