Malaysian Palm Oil Exports Performance to Europe Region
(January – May 2023)
A Review on MPO Performance
A Review of MPO Export Performance (MT)
| Table 1: Malaysia’s Palm Oil Export to Europe Region (MT) | |||||
|---|---|---|---|---|---|
| Country | Jan-May 23 | Jan-May 22 | Change (MT) | Change (%) | MPO Import 2022 |
| EU-27 | |||||
| Netherlands | 229,667 | 382,856 | (153,188) | (40.01) | 815,746 |
| Italy | 73,050 | 113,279 | (40,229) | (35.51) | 266,770 |
| Spain | 59,311 | 58,283 | 1,028 | 1.76 | 158,087 |
| Sweden | 54,768 | 54,016 | 752 | 1.39 | 114,795 |
| Denmark | 14,547 | 17,324 | (2,777) | (16.03) | 33,838 |
| Germany | 11,443 | 14,198 | (2,755) | (19.40) | 39,932 |
| Belgium | 6,971 | 904 | 6,067 | 670.82 | 3,601 |
| Greece | 4,168 | 4,844 | (675) | (13.95) | 10,799 |
| Bulgaria | 2,613 | 1,199 | 1,414 | 117.91 | 1,490 |
| Croatia | 2,330 | 3,735 | (1,405) | (37.62) | 10,102 |
| Romania | 701 | 1,090 | (389) | (35.73) | 3,334 |
| Hungary | 685 | 482 | 203 | 42.12 | 1,296 |
| Poland | 540 | 39 | 502 | 1,290.12 | 555 |
| Estonia | 420 | 2,501 | (2,081) | (83.21) | 2,523 |
| France | 316 | 440 | (125) | (28.28) | 1,473 |
| Slovenia | 236 | – | 236 | – | 206 |
| Latvia | 229 | 146 | 83 | 56.88 | 1,504 |
| Malta | 104 | 19 | 86 | 460.90 | 112 |
| Lithuania | 68 | – | 68 | – | – |
| Portugal | 49 | 82 | (33) | (40.13) | 328 |
| Czech | 39 | 57 | (19) | (32.29) | 95 |
| Slovakia, Rep. | – | – | 0 | – | 168 |
| Austria | – | – | 0 | – | 260 |
| Sub-Total | 462,255 | 655,494 | (193,239) | (29.48) | 1,467,014 |
| NON-EU | |||||
| United Kingdom | 5,587 | 7,035 | (1,448) | (20.58) | 14,544 |
| Switzerland | 23 | 23 | 0 | 0.00 | 47 |
| Norway | 21 | 3,371 | (3,349) | (99.37) | 5,302 |
| Sub-Total | 5,632 | 10,430 | (4,798) | (46.00) | 19,893 |
| EASTERN EUROPE & CENTRAL ASIA | |||||
| Uzbekistan | 20,143 | 807 | 19,336 | 2,395.92 | 12,404 |
| Kazakhstan | 9,599 | 7,029 | 2,570 | 36.57 | 23,350 |
| Russia | 2,279 | 4,708 | (2,430) | (51.60) | 6,157 |
| Georgia | 968 | 1,607 | (639) | (39.76) | 1,922 |
| Kyrgyzstan | 259 | 298 | (39) | (13.12) | 622 |
| Turkmenistan | 47 | 139 | (92) | (66.21) | 455 |
| Ukraine | – | 9,152 | (9,152) | (100.00) | 9,266 |
| Tajikistan | – | – | 0 | – | 433 |
| Moldova | – | – | 0 | – | 19 |
| Sub-Total | 33,295 | 23,741 | 9,554 | 40.24 | 54,628 |
| Grand Total | 501,182 | 689,665 | (188,482) | (27.33) | 1,541,535 |
Table 1: Export of Malaysian Palm Oil into the European Region, including Central Asia for January – May 2023
Export Performance of Malaysian Palm Oil into the European Region
Figure 1: Import Trend of Top 5 Malaysian Palm Oil Importers in Europe for January – May 2023
From January until May 2023, Malaysia exported a total of 462,225 MT to the EU bloc nations, worth RM 2 billion. There has been a significant Y-o-Y decline of 29 %. This overall decline is in tandem with a general trend that has been observed for export of palm oil and palm-oil based products and derivatives. In the same period in 2022, the EU bloc imported 655,494 MT of Malaysian palm oil. This decline is mainly attributed to a sharp increase in imported biodiesel from China in lieu of domestically produced biodiesel. This is also further compounded by the trend of increased usage of rapeseed as biodiesel feedstock.
The Netherlands remains the largest destination market for Malaysian palm oil, importing 229,667 MT of Malaysian palm oil between January to May 2023. However, it also recorded a decline by percentage with a 40.01% Y-o-Y reduction. Italy is next as the second largest destination market with approximately 73,050 MT. Italy too, recorded a significant dip with a 35.51% decline Y-o-Y. Meanwhile, for Spain, there was a slight Y-o-Y increase of 1.7%. Spain imported 59,311 MT of Malaysian palm oil. As for the rest of Europe, Malaysia exported 5,587 MT of palm oil to the UK for this period, with a Y-o-Y decline of 1,448 MT. This situation is expected to turn positive soon as the UK has recently introduced a zero tariff for palm oil imported from Malaysia. This is following the UK joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in April 2023.[1]
As for the Central Asian nations, the Malaysian palm oil market fared exceptionally well. There has been an 40.24% Y-o-Y growth, as Malaysia exported 9,554 MT more than it did in the same period in 2022. The demand was driven by the uptake by Uzbekistan and Kazakhstan. Malaysia has also exported 2,279 MT of palm oil to Russia.
However, despite the promising growth in this region, the demand from several countries declined. Georgia, Kyrgyzstan, Turkmenistan, and Ukraine were among the countries that imported less Malaysian palm oil from January until May 2023. Ukraine has not been importing any Malaysian palm oil at all for this period. The situation in Ukraine is expected to remain stagnant due to the escalating geopolitical tension in the country.
Export Performance of Malaysian Palm Oil into the Central Asia Region
Figure 2: Import Trend of Top 4 Malaysian Palm Oil Importers of Eastern Europe and Central Asian Republics for January – May 2023
Authored by:
Hajar Shamsudin & Fazari Radzi
[1] https://www.aseanbriefing.com/news/uk-joins-the-cptpp-opportunities-for-british-investors-in-malaysia/
For more info please contact Mr Fazari: fazari@mpoc.org.my
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