Malaysian Palm Oil Exports Performance to Asia Pacific Region
(Jan – Feb 2020)
A Review on MPO Performance
|NO||COUNTRY||Jan-Feb 2020||Jan-Feb 2019||Diff (Vol)||Diff (%)|
|12||Papua N. Guinea||793||1,246||(453)||(36.37)|
During the period of January to February 2020, Malaysian palm oil export to the Asia Pacific region decreased by 2,944 MT or by 0.62% compared to the last year. This was mainly due to the lower imports by Vietnam, Singapore and Myanmar. Philippines retained its position as the main destination of Malaysian palm oil exports with increased of 24,946 MT or by 23.7%. It showed an improvement in Malaysian palm oil export to the Philippines after the drop in 2019 mainly due to improved coconut oil production in Philippines which allowing a recovery of stocks, larger domestic use and an increase of exports.
Food service is one of the sectors that shows steady growth in the Philippines propelled by consumers’ stronger purchasing power, a larger middle class, higher urbanization, and increasing dining options. Based on the USDA report, it is estimated that food services sales rise 8.6% or USD 15 billion in 2019 and projected will reach USD 16.1 billion in 2020. It is a good opportunity for palm oil usage in this sector which is hotel, restaurant and institutional (HRI).
Source : USDA
Malaysian palm oil exports to Vietnam have registered a decline of 31,657 MT or 39.03% compared to same period in 2019 mainly due to high carry over stock from 2019. Reportedly, in 2019 the total palm oil import in the Vietnam increased by 4.7% to 912,000 MT while the consumption is only increased by 0.5% which makes the ending stock of palm oil in Vietnam for 2019 increased by 16,000 MT or 20.3%. Vietnam shows the positive trend in palm oil import with average annual growth at 6.3% from the past five years. It is projected that total palm oil import in Vietnam will increase to 1 million MT in 2021.
Breakdown of MPO Exports to the Asia Pacific Region (MT) Jan – Feb 2020
|Malaysian Palm Products Export to Asia Pacific Region (By Products)|
|PRODUCT||Jan-Feb 2020||Jan-Feb 2019||Diff (Vol)||Diff (%)|
|CO / DPL||19,434||19,101||332||1.74|
COVID-19 pandemic has made a big impact on the world economic. World leading economic powerhouse such as South Korea is not spared from it claws. South Korea is the top 10 countries most affected by COVID-19. According to USDA Market Specialist, Sang Yong Oh, the COVID-19 outbreak has had a significant impact on the Korean food retail market. Lesser people are going out to purchase food at the local outlet which has recorded a decline of 13 -16% (Lotte Outlet).
Even though, COVID-19 is resulting in decline of sales in the Korean food retail market, however, its impact on palm oil usage in the sector may not be that significant. In Korea, palm oil is largely being used in the commercial sector instead of consumer sector. Even there is a change in the buying pattern of the Korean consumer, the usage of palm oil will remain the same or there might be a possibility of a slight increase, if there is a significant growth in on-line purchases of packed and processed foods such as instant noodles and canned foods. Currently, the statistic shows a significant increase in on-line purchase which is at 98%. If the trends continue, palm oil may have the opportunity to increase in Korean food market. MPOB statistics shows there is a slight increase in export figure for the month of February this year (68,357 MT) compared to the same period last year (64,099 MT).
Article’s Source: USDA Foreign Agricultural Service
For more info please contact Mrs Rina Mariati
Email : email@example.com
*Disclaimer: This document has been prepared based on information from sources believed to be reliable but we do not make any representations as to its accuracy. This document is for information only and opinion expressed may be subject to change without notice and we will not accept any responsibility and shall not be held responsible for any loss or damage arising from or in respect of any use or misuse or reliance on the contents. We reserve our right to delete or edit any information on this site at any time at our absolute discretion without giving any prior notice.