Malaysian Palm Oil Exports Performance to Sub-Saharan Africa Region
(Jan – Oct 2019)
A Review on MPO Export Performance
Table 1: Top Importers of Malaysian Palm Oil from Sub-Saharan Africa
|Jan-Oct 2019 (MT)||Jan-Oct 2018 (MT)||Diff (Vol.)||Diff (%)|
|Congo Dem. Rep.||34,418||30,551||3,867||12.66|
Source : MPOB
After lacklustre performance in the past few months, October 2019 was a good month for Malaysian palm oil exporters to the Sub-Saharan Africa region as exports showed a strong recovery. Compared to September 2019 where export volume was slightly below 100,000 MT, October figure jumped by 144% to reach 244,000 MT. It was the best monthly export performance so far this year (Please refer to Figure 1 below). Improvement in MPO export to the region can be attributed to higher demand for crude palm olein (100,000 MT), RBD palm olein (89,000 MT) and crude palm oil (22,000 MT). Nigeria was the largest buyer of MPO last month with intake of 52,000 MT, followed by Tanzania with 42,000 MT. Other countries with strong purchase of MPO in the month of October 2019 include Kenya (22,000 MT), Mozambique (21,200 MT) and Ghana (20,500 MT).
However, for Jan-Oct 2019 period, total import volume of MPO is well below last year performance by 18.12 %. Export to the region so far has contracted to 1,580,944 MT from 1,930,876 MT a year earlier. Reduced intakes most countries especially by Ghana, Kenya, Benin, Cote D’Ivoire, Senegal, Mozambique and Togo among others contributed to the lower performance of MPO exports. The drop in MPO imports is also corresponds with the rise in imports from another exporting country.
Ghana, one of the biggest buyers in West Africa region imported 105,000 less (<48.5%) of MPO. Other countries with sizeable drop in MPO import include Benin (<75,000 MT), Kenya (<65,000), Cote D’Ivoire (<64,000 MT), Senegal (<57,000 MT), Mozambique (<30,000) and Togo (<30,000).
Figure 1: Monthly Export of MPO to Sub-Saharan Africa (MT)
Nigeria is the top importer of MPO in the region with 222,488 MT (up by 011%). Despite high import duty imposed (35%), Nigeria still has import CPO from Malaysia and other producing countries as local production is insufficient to cater for demand from about 200 million population and growing. Bulk of Nigerian MPO imports are in the form of CPO/CPL for its refineries. After below average buying in the first nine months, Tanzania imported 32,000 MT of RBD Palm Olein in October to surge its total MPO import to 168,000 but still below than last year figure of 179,000 MT. Tanzania neighbouring countries Kenya and Mozambique also imported less MPO this year. Kenya took 65,000 MT less (<32.8%), while Mozambique intakes was 30,000 MT (<16.95) lower than the year before. After unusually low buying in the second and third quarters, Mozambique in the month of October raise the import of MPO to 22,000 MT mostly in the form of crude palm olein. Based on data available until August 2019, import into Mozambique from another exporting county has accumulated to almost 100,000 MT from just 29,000 MT last year.
Figure 2: Breakdown of MPO Exports (MT) Jan-Oct 2019
Source : MPOB
RBD palm Olein and Crude Palm Oil/Olein continue to be the top categories of MPO palm oil products exported into the region with each product made up about 47.9% and 35.6% respectively. Lower CPO/CPL export to the region is due to competition from other producing country. This situation can be observed in a country like Ghana and Mozambique where import of Malaysian CPO has dropped by 100,000 MT and 25,000 MT respectively from a year earlier. Higher import tax imposed by Tanzanian government is a sole reason why there is no import of CPO into the country as against 78,000 MT the year before.
Breakdown of MPO Exports Products to Sub-Saharan Africa (MT)
|Diff (MT)||Diff (%)|
|RBD Palm Olein||758,142||787,211||(29,069)||(3.69)|
|RBD Palm Oil||60,865||56,932||3,933||6.91|
|RBD Palm Stearin||54,320||50,422||3,898||7.73|
Source : MPOB
Based on the past few months trend, tightness of supply and rising palm oil prices, the region is expected to import around 180,000 – 200,000 MT of MPO in the month of November 2019.
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