Malaysian Palm Oil Exports Performance to Europe Region
(January – April 2023)
A Review on MPO Performance
Table 1: Export of Malaysian Palm Oil into the European Region, including Central Asia for January – April 2023
|Table 1: Malaysia’s Palm Oil Export to Europe Region (MT)|
|Country||Jan-Apr 23||Jan-Apr 22||(MT)||Change (%)||2022|
Export Performance of Malaysian Palm Oil into the European Region
From January until April 2023, Malaysia exported a total of 387,216 MT to the EU bloc nations, worth RM 1.68 billion. There has been a significant Y-o-Y decline of 25 %. In the same period in 2022, the EU bloc imported 516,199 MT of Malaysian palm oil. This decline is worrying as the EU proceeds forward with its EU Deforestation Regulation (EUDR). This could signify that the EU nations will source other oils and fats such as rapeseed and sunflower to meet their needs.
The Netherlands remains the main destination market for Malaysian palm oil with 196,440 M but this nation also recorded the largest decline by 37.4% compared to the same period of 2022. This decline is due to increased rapeseed crushing and reduced demand for domestically produced biodiesel as large shipments of biodiesel from China is arriving. Italy is the second largest destination market with approximately 60,000 MT but it was recorded a significant dip with a 31% decline compared to 2022. Meanwhile, for Spain the country imported 54,079 MT of Malaysian palm oil which is an increase of 11,567 MT or by 27%.
As for the rest of Europe, Malaysia exported 4,700 MT of palm oil to the UK for this period, a decline of 2,000 MT. This situation is expected to turn positive soon as the UK has recently introduced a zero tariff for palm oil imported from Malaysia following the UK joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in April 2023. As for the Central Asian nations, the Malaysian palm oil market fared exceptionally well. There has been an 83.84% Y-o-Y growth, as Malaysia exported 13,643 MT more than it did in the same period in 2022. The demand was driven by the uptake by Uzbekistan and Kazakhstan. Malaysia has also exported close to 1,300 MT of palm oil to Russia. However, despite the promising growth in this region, the demand from several countries declined. Georgia, Kyrgyzstan, Albania, Turkmenistan, and Ukraine were among the countries that imported less Malaysian palm oil from January until April 2023. Ukraine has not been importing any Malaysian palm oil at all for this period. The situation in Ukraine is expected to remain stagnant due to the escalating geopolitical tension in the country.
Export Performance of Malaysian Palm Oil into the Central Asia Region
Figure 2: Import Trend of Top 4 Malaysian Palm Oil Importers of Eastern Europe and Central Asian Republics for January – April 2023
Hajar Shamsudin & Fazari Radzi
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