Africa (Jan – Sep) 2019

Malaysian Palm Oil Exports Performance to Sub-Saharan Africa Region
(Jan – Sep 2019)
A Review on MPO Export Performance

Table 1: Top Importers of Malaysian Palm Oil from Sub-Saharan Africa

 Jan-Sep 2019 (MT)Jan-Sep 2018 (MT)Diff (Vol.)Diff (%)
Nigeria169,672170,396(724)(0.42)
South Africa151,534175,816(24,282)(13.81)
Mozambique128,450155,855(27,405)(17.58)
Tanzania125,046158,015(32,969)(20.86)
Kenya111,261169,856(58,595)(34.50)
Angola105,94572,40533,54046.32
Benin102,094150,547(48,454)(32.19)
Ghana91,315174,449(83,134)(47.66)
Togo70,86982,206(11,337)(13.79)
Mauritania63,08845,23417,85439.47
Guinea54,68837,39717,29146.23
Congo Dem. Rep.33,04229,9873,05510.19
Madagascar29,37648,203(18,827)(39.06)
Senegal22,19265,735(43,543)(66.24)
Cote D’Ivoire16,78452,514(35,731)(68.04)
Niger16,14790415,2431,686.04
Others45,17446,699(1,525)(3.27)
Total1,336,6761,636,219(299,543)(18.31)

Source : MPOB

Malaysian palm oil export to the Sub-Saharan Africa region for the period of Jan-Sep 2019 has dropped by 18.31% compared to the same last year. Export to the region has reduced to 1,336,676 from 1,636,219 a year earlier. For the month of September 2019, MPO exports to countries in the Sub-Saharan Africa just totalled 99,673 MT below monthly average of 148,000 MT for the year. It was the second consecutive month, MPO export to the region fell below 100,000 MT marks. Reduced intakes most countries especially by Ghana, Kenya, Benin, Senegal, Tanzania, South Africa and Mozambique 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.

Figure 1: Monthly Export of MPO to Sub-Saharan Africa (MT)

Nigeria is the top importer of MPO with 169,672 MT (down by 0.42%) compared to Jan-Sep 2018. In the month of September 2019, Nigeria only bought 5357 MT of MPO, less than one third of 18,852 MT monthly average. Bulk of Nigerian MPO imports are in the form of CPO/CPL for its refineries. South Africa imported 53,000 MT of RBD palm olein, 42,000 MT of RBD palm oil and 28,000 MT of RBD palm stearin so far this year, but for the month of September 2019, South Africa only imported 2,731 MT of MPO. After strong buying of MPO in the first quarter of this year with monthly average of about 30,000 MT, intakes by Mozambique has reduced significantly in the past two quarters with monthly average of only 6,200 MT. During Apr-Sep 2019 period, Mozambique imported only 37,000 MT of MPO compared to 90,000 MT in Jan-Mar 2019 period. Based on data available until July 2019, import to Mozambique from another exporter has increased to 64,000 MT from just 23,000 MT last year.

Two major buyers in the East Africa region, Kenya and Tanzania have imported less MPO so far this year compared to last year. Despite exporting 35,000 MT MPO in September 2019, total MPO export to Kenya so far this year has dropped by 34.5% to 111,261 MT and Tanzania took in 20.9%. These two countries have shifted their source of imported palm oil to different exporter, hence lower MPO exports volume. The change in Tanzania import duty structure also bear negative consequences on the imported palm oil into the country.

The same trend is also observed in several West African countries such as Ghana and Benin where imports of MPO have dropped by 47.6% and 32.2% respectively so far this year compared to last year. Until July this year, imports of palm oil by Ghana from another exporter has increased significantly by more than 460 % to 73,000 MT from 13,000 MT last year.

Figure 2: Breakdown of MPO Exports (MT) Jan-Sep 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 50.1% and 33.1% respectively. Lower CPO/CPL export to the region is due to a reduction in Indonesia export levies in Dec 2018 which has raised the competitiveness of Indonesian palm oil on the world market, while a narrowing of the tax differential between crude and processed palm oils helped increase the share of crude palm oil exports from Indonesia this year. This situation can be observed in a country like Ghana where import of Malaysian CPO has dropped to 63,000 MT from 143,000 MT a year earlier. Higher import tax imposed by Tanzanian government is a major factor that contributed to zero import volume of CPO into the country as against 77,000 MT the year before.

Breakdown of MPO Exports Products to Sub-Saharan Africa (MT)

PRODUCTJan-Sep
2019
Jan-Sep
2018
Diff (MT)Diff (%)
RBD Palm Olein669,690686,986(17,296)(2.52)
CPO/CPL/CPS442,773683,464(240,691)(35.22)
Cooking Oil84,58697,109(12,523)(12.90)
RBD Palm Oil59,75852,1227,63614.65
RBD Palm Stearin40,95345,337(4,384)(9.67)
PFAD33,17944,384(11,205)(25.25)
Others5,73726,817(21,080)(78.61)
TOTAL1,336,6761,636,219(299,543)(18.31)

Source : MPOB

Based on the past few months trend, for the month of October 2109, the region is expected to import around 100,000 – 120,000 MT of MPO.


For more info please contact Mr Iskahar
Email : iskahar@mpoc.org.my

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