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

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

During January-February 2023 period, total Malaysian palm oil export to the Americas region recorded a total volume of  40,517 MT against 15,892 MT which was registered during the same period of 2022 (refer to Table 1). This represents an increase of 24,625 MT or by 155%. In terms of product breakdown to the Americas region, the biggest product being exported to the region during Jan-Feb 2023 period is RBD palm oil accounting for 35% of total exports (refer to Chart 2 and table 3). After RBD palm oil, RBD palm stearin (26%) is another major palm oil product exported into the Americas region, followed by RBD palm olein (17%). Among the major importers of RBD palm oil are the USA (12,216 MT), Chile (654 MT) and Argentina (350 MT). Major destinations for Malaysian RBD palm stearin include the USA (9,875 MT), Argentina (215 MT) and Trinidad (196 MT). Exports of RBD palm olein are mainly purchased by the USA (4,611 MT), Canada (1,314 MT) and Trinidad (430 MT). Double Fract RBD PL is another major export product, mainly purchased by the USA (1,001 MT) and Canada (199 MT).

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

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 (USA). During Jan-Feb 2023 period, total MPO exports to USA went up to 31,267 MT from 8,997 MT recorded during the same period of last year (refer to Table 4).

In terms of product breakdown to USA, RBD palm oil, RBD palm stearin and RBD palm olein are the top three products exported to the USA comprising almost 90% of the overall MPO export to USA (refer to table 4). Export of RBD palm oil increased by 1802%, RBD palm stearin increased by 338% while RBD palm olein increased by 207%.

The positive increment of Malaysian palm oil export to the USA came after US SCBP 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.

Growing consumption of soybean oil is driven by rising biodiesel production. The demand for soybean oil remain steady despite competitive prices offered by palm oil and other edible oils as such sunflower oil and rapeseed oil. Soybean oil import by the USA had increased during this period to fulfil the domestic consumption in biofuel sector. Palm oil is not eligible for RIN credits as biodiesel feedstock and instead replaces other oils and fats mainly in the food sector and in compound feed. Import of rapeseed oil mainly Canadian canola oil has soared since canola oil-based biofuel qualifies as advanced biofuel under RFS.

Table 4: MPO Export to USA by Type of Products

Canada, another important market for MPO in this region, has been consistently importing palm oil from Malaysia for years. Total MPO export increased by 49.3% to 2,125 MT during Jan-Feb 2023 period from 1,423 MT registered during same period last year (refer to Table 5). The main fraction exported was RBD palm olein accounting for 66% of total MPO import by Canada which has registered an increment by 20.2%, and this is followed by PFAD at 550 MT and DFRBD PL at 199 MT.

Table 5: MPO Export to Canada by Type of Products

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