Africa (Jan – Jun) 2019

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

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

 Jan-Jun 2019 (MT)Jan-Jun 2018 (MT)

Diff

(Vol.)

Diff

(%)

Nigeria145,14479,87365,27181.72
South Africa121,709107,48714,22213.23
Mozambique103,86292,15811,70412.70
Tanzania91,490126,164(34,674)(27.48)
Angola80,77644,94535,83179.72
Benin69,812110,826(41,014)(37.01)
Kenya57,033114,385(57,352)(50.14)
Ghana53,942101,566(47,624)(46.89)
Togo53,09448,0625,03210.47
Guinea48,75916,89531,864188.60
Mauritania45,82032,23113,58942.16
Congo Dem. Rep.21,71018,3303,38018.44
Senegal19,66828,324(8,656)(30.56)
Madagascar15,50124,004(8,503)(35.42)
Others54,59255,744(1152)2.07
Total983,4321,000,996(17,564)(1.75)

Source : MPOB

For the month of June 2019, Malaysian palm oil exports to countries in the Sub-Saharan Africa totalled 92,908 MT compared to 120,980 MT a month earlier. It was the lowest monthly intake of MPO registered by the region since May 2016. For the record, average monthly regional import volume is about 190,000 MT per month in the past three years. However, year-on-year basis until June 2019, MPO export is slightly lower by 1.75 % or 17,564. Nigeria, South Africa and Mozambique are the top three buyers in the region with import volume of 370,000 MT for the three countries combined.

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

From the trend above, countries in the region imported less MPO in the second quarter but the trend steadily increased from July onwards. Nigeria is still the top importer of MPO with 145,000 MT (up by 82%) compared to Jan-May 2019. Bulk of Nigerian MPO imports (84%) are in the form of CPO/CPL for its refineries. Besides Malaysia, Nigeria also imported palm oil from Indonesia and other ECOWAS countries such as Ivory Coast.

South Africa imported 44,000 MT of RBD palm olein, 33,000 MT of RBD palm oil and 25,000 MT of RBD palm stearin in the last 5 months. Mozambique, only imported 449 MT of MPO in June 2019, 7,000 and 5,000 MT of MPO in May and April 2019 respectively. In the second quarter, Mozambique intakes totalled less than 13,000 MT, compared to 91,000 MT in the first quarter. Part of Mozambique MPO imports is also used for exporting to other neighbouring countries.

Kenya and Tanzania, two major importers from East Africa, have imported less MPO so far this year compare to last year (28 % and 37% lower) due to competition from other exporting country who can offer lower prices.  Several West African countries such as Benin and Ghana have taken lesser volume of MPO year-on-year for the same reason mentioned above.   

Figure 2: Breakdown of MPO Exports (MT) Jan-Jun 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 49% and 33% respectively. Cooking palm oil exports increased by 12% (7,626 MT) due to higher imports by countries such Angola, Benin and Mauritania.

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 in recent months.

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

PRODUCTJan-Jun 2019

Jan-Jun

2018

Diff (MT)Diff (%)
RBD Palm Olein482,765477,1695,5961.17
CPO/CPL324,119363,855(39,736)(10.92)
Cooking Oil68,08160,4557,62612.61
RBD Palm Oil42,63729,67312,96443.69
RBD Palm Stearin36,09230,0506,04220.11
PFAD25,09928,030(2,931)(10.46)
Others4,63911,764(7,125)(60.57)
TOTAL983,4321,000,996(17,564)(1.75)

Source : MPOB

For the next few months, starting from July, MPO imports to the region is expected to gradually increase as opposed to lacklustre figures in the past three months. However, as highlighted above, competition from other producing countries continues to loom large in this market.


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

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