Europe (Jan – Nov) 2021

Malaysian Palm Oil Exports Performance to Europe Region
(January – November 2021)
A Review on MPO Performance

Table 3: Malaysia’s Export to Europe Region (MT)
 COUNTRYJan-Nov 2021Jan-Nov 2020Change (Vol.)Change (%)Jan-Dec 2020
EU-27
Netherlands891,997994,584(102,586)(10.31)1,072,952
Italy275,860415,187(139,327)(33.56)439,053
Sweden98,59195,1683,4233.60103,440
Spain75,330179,768(104,439)(58.10)198,287
Denmark48,93646,7202,2154.7452,832
Greece41,65915,61426,045166.8016,006
Germany17,85620,214(2,358)(11.67)21,462
Croatia9,5237,4092,11428.547,999
Belgium6,7422,8133,929139.683,174
Romania2,9506,538(3,588)(54.88)6,559
Bulgaria1,17810,473(9,295)(88.75)10,706
Portugal170326(156)(47.94)328
France149243(94)(38.65)259
Latvia731,794(1,721)(95.93)1,794
Lithuania6097(37)(37.71)97
Poland47516(469)(90.96)516
Hungary211,376(1,355)(98.47)1,451
Austria60(60)(100.00)60
Cyprus42(42)(100.00)42
Estonia24(24)(100.00)24
Slovenia46(46)(100.00)46
Sub-Total1,471,1411,799,012(327,871)(18.23)1,937,088
NON-EU
United Kingdom13,12615,153(2,027)(13.38)16,143
Switzerland1,38097140842.061,516
Albania2081,483(1,275)(86.00)1,843
Norway70442658.7222
Sub-Total14,78317,651(2,868)(16.25)19,524
EASTERN EUROPE & CAR
Ukraine27,17349,385(22,212)(44.98)49,697
Georgia19,42519,42320.0119,470
Russia13,11310,3822,73126.3110,967
Kazakhstan9,17314,574(5,401)(37.06)16,066
Uzbekistan4,06229,657(25,595)(86.30)30,210
Kyrgyzstan73059113923.60591
Tajikistan316119197166.32119
Turkmenistan1361,358(1,222)(89.97)1,358
Moldova22162(140)(86)162
Sub-Total74,151108,780(34,629)(32)128,640
Grand Total1,560,0751,925,442(365,367)(18.98)2,085,252
Source: MPOB

From January to November 2021, Malaysian palm oil export to the Europe region was recorded at 1,560,075 MT, a decrease of 365,367 MT or by 19% from 1,925,442 MT recorded during the same period of 2020. The main reason for the drop was due a combination of a tightening supply of palm oil due to lower production caused by labour shortages, and lower demand from the food manufacturing and logistic issues, as a result of Covid-19 pandemic restriction measures. Another reason for the drop is due to lower demand in the biofuels sector, in which demand is shifting towards advanced biofuels in lieu of conventional biofuels as a result of RED II regulations. Netherlands, Italy and Sweden are the three biggest destinations of Malaysian palm oil in the EU.

Netherlands remained as the leading importer of Malaysian palm oil in the EU and Europe region with 891,997 MT, but this is a decrease of 102,586 MT or by 10.31% compared to the same period of 2020. This lower import volume can be attributed to the increased demand for Indonesian processed palm oil as the new tax structure enforced from January 2021 made their refined and processed products cheaper compared to Malaysia. Netherlands is expected to remain firm as a palm oil importing country as they are the main hub for palm oil exported to many countries in the Europe region.

Greece recorded the largest increase in import volume, importing a total of 41,659 MT between January and September 2021, an increase of 167% or by 26,045 MT compared to the same period of the previous year. This is due to the opening of the economy, and considering the current palm oil and sunflower oil price gap, palm oil is the most economical oil and thus is currently the preferred choice of edible oils in the country.

In the Eastern Europe and CAR, a sharp drop of imports was recorded by Ukraine and Uzbekistan. Price competition with Indonesian palm oil was the main reason for the significant drop in Ukrainian MPO imports, with Indonesian palm oil companies catering to bulk purchases coupled with attractive discounts. In Uzbekistan, the significant drop recorded was due to the revised duty structure on the imports of oils and fats and all fractions of palm oil which are now subjected to 5% duty besides other applicable taxes if imported from Most Favoured Nations (MFN) countries including Malaysia. The countries in the CIS region are still enjoying zero duty on the import of palm oil. As a result of the new duty structure, MPO exports to Uzbekistan have been greatly reduced.

Breakdown of MPO Exports (MT)

Exports of CPO and CPO certified palm oil (RSPO and ISCC certified) into the EU continue to be the biggest component of Malaysian palm oil exports to Europe, comprising 46% of the total. Higher uptakes are recorded mostly into Netherlands, Germany and Italy where palm oil is utilized in the energy sector. One of the reasons for the lower exports of Malaysian palm oil was shifting market demand in the energy sector, where the biofuels industry are shifting towards advanced and waste-based biofuels. Due to this reason, palm oil mill effluent (POME) exports from Malaysia are increasing in lieu of CPO and biodiesel. Another reason for the drop was due to competition from Indonesia since they changed their export duty structure for refined products. This is addition to the discounts given by Indonesian suppliers as according to industry sources, Indonesian suppliers have been aggressively offering discounted prices of their refined products in the European market, thus reducing the intake of supplies from Malaysia. Additionally, the supply situation in Malaysia had also contributed to the lower imports, in which shortage of labour that led to lower production.

Malaysia’s Export to Europe – Breakdown by Palm Products (MT)
 Jan-Nov 2021Jan-Nov 2020Change (Vol.)Change (%)Jan-Dec 2020
CPO310,469508,426(197,957)(38.94)530,325
CPO for RSPO from Segregated & Int Sustainability N Carbon Certification285,695254,55231,14312.23259,797
RBD PS166,865180,548(13,683)(7.58)189,631
CPO International Sustainability And Carbon Certification129,638353,527(223,890)(63.33)399,943
RBD PL112,18591,64220,54322.42100,366
PFAD111,73474,28837,44650.4186,887
PAO108,052106,8041,2491.17112,856
PMF / RBD PMF85,66784,4721,1951.4191,333
RBD PO63,257116,786(53,529)(45.83)119,791
RBD PS for RSPO from Segregated47,39036,85110,54028.6042,489
Others139,121134,4164,7053.50151,834
GRAND TOTAL1,560,0751,942,312(382,238)(19.68)2,085,252
Source: MPOB

Chart 1 : Breakdown of MPO Exports (MT)

Source: MPOB

For more info please contact Mr Izham: izham@mpoc.org.my

*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.

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