Europe (Jan – May) 2022

Malaysian Palm Oil Exports Performance to Europe Region
(January – May 2022)
A Review on MPO Performance

Table 1: Malaysia’s Export to Europe Region (MT)
CountryJan-May 2022Jan-May 2021Y-O-Y Change (Vol.)Y-O-Y Change (%)Jan-Dec 2021
EU-27
Netherlands382,856395,006(12,150)(3.08)988,585
Italy113,27990,20023,07825.59308,127
Spain58,28330,65127,63390.1593,840
Sweden53,86033,55820,30260.50110,054
Denmark17,08019,162(2,082)(10.86)53,382
Germany14,19811,0283,17028.7421,159
Greece4,84419,668(14,824)(75.37)42,315
Croatia3,7353,18455117.319,734
Estonia2,5012,501
Bulgaria1,199521678130.301,178
Romania1,0901,522(432)(28.38)3,083
Belgium9042,561(1,657)(64.69)6,937
Hungary482482126
France440102338331.25184
Latvia1467373100.0073
Portugal82154(73)(47.03)175
Czech5757
Poland393947
Malta1919
Lithuania6(6)(100.00)60
Sub-Total655,094607,39547,6997.851,639,059
NON-EU
United Kingdom7,0353,1673,868122.1515,677
Switzerland3,3717392,632356.191,380
Norway2323070
Sub-Total10,4303,9296,500165.4417,126
EASTERN EUROPE AND CENTRAL ASIAN REPUBLICS
Ukraine9,15213,535(4,383)(32.38)36,681
Kazakhstan7,0293,5413,48898.529,322
Russia4,7081,6213,088190.5513,158
Georgia1,6078,704(7,097)(81.54)19,725
Uzbekistan8073,423(2,616)(76.43)4,062
Kyrgyzstan298554(256)(46.26)730
Turkmenistan139139182
Moldova22(22)(100.00)22
Tajikistan316(316)(100)316
Sub-Total23,74131,716(7,975)(25.14)84,199
Grand Total689,265643,04046,2247.191,740,385
Source: MPOB

For the first five months of 2022, Malaysia exported a total of 689,265 MT of palm oil to the European region, including Central Asian countries. This is a healthy increase of 7.19% Y-O-Y, with a difference of 46,224 MT.

The Netherlands remains the biggest importer of Malaysian palm oil for the European region. This is consistent with its need as a re-export destination to other European countries. However, there was a slight drop of 3.08% Y-O-Y for the nation, importing a total of 382,856 MT of Malaysian palm oil compared to 395,006 MT for this period in 2021. This is likely due to several neighbouring countries opting for direct imports of Malaysian palm oil, as a result of congestion in Rotterdam port.

Italy was the second biggest importer of Malaysian palm oil in the first five months of 2022, with 113,279 MT of palm oil import, with a 25.59% Y-O-Y increase. This rise is possibly due to a consumer shift towards palm oil due to the shortage o sunflower in the market.

A decline in the import of Malaysian palm oil was also observed in several nations in the European region. These countries include Greece, Denmark, and Belgium. Delay in shipments and lack of storage area contributed to the decline in Greek imports of palm oil, while an increase in local edible oils production in Denmark had reduced their dependence on imports.

As for war-torn Ukraine, no Malaysian palm oil was exported to the country in May 2022. A worrying decline is also seen in Georgian imports, also due to conflict affecting trade in the Black Sea area. Russia imported a total of 4,474 MT of Malaysian palm oil in May 2022, a major import figure since the start of the Russia-Ukraine conflict in February.

Breakdown of MPO Exports (MT)

An emerging trend was noted for other fractions of palm oil. Higher volumes of PFAD and ISCC-certified RBD palm oil were noted with imports of 49,820 MT and 33,852 MT, respectively. The upsurge of 65% Y-O-Y for PFAD and 127% Y-O-Y for ISCC-certified RBD palm oil are due to their increased applications in the biofuels sector.

Overall CPO imports (including certified sustainable CPO) fell by 8% Y-O-Y, contributed by the decline in imports of non-certified CPO and ISCC certified CPO. This is due to lower demand in the biodiesel sector, as RED II policies imposed had shifted the demand from crop-based fuels into waste-based fuels.

Substantial import growth of RSPO certified CPO was also noted in this period, contributed by the soaring demand in the food sector as a result of the shortage of sunflower oil.

It is important to note that the Europe region is still facing a supply-demand deficit due to disruptions in the global supply of sunflower oil. Post-COVID recovery in the HORECA and transport sectors continues to put pressure on the supply-demand situation. As a result, from January to May 2022, the overall export of Malaysian palm oil to the region grew 7.19% Y-O-Y.

Table 2: Malaysia’s Export to Europe – Breakdown by Palm Products (MT)
Palm Oil Fractionation ProductJan-May 2022Jan-May 2021Y-O-Y Change (Vol.)Y-O-Y Change (%)Jan-Dec 2021
CPO137,059147,529(10,470)(7.10)337,583
CPO for RSPO from Segregated135,95695,17540,78142.85328,390
RBD PS68,49873,021(4,523)(6.19)185,226
RBD PL62,06342,32019,74346.65120,523
PFAD49,82030,26219,55864.63139,123
PAO44,75323,87620,87787.44120,423
PMF / RBD PMF36,77329,0447,72926.6191,792
RBDPO for ISCC33,85214,89318,959127.3014,893
CPO International Sustainability And Carbon Certification31,17287,565(56,392)(64.40)142,138
RBD PO18,42330,530(12,107)(39.66)70,808
Others70,89568,8272,0693.01    189,486
GRAND TOTAL689,265643,04046,2247.191,740,385
Source: MPOB

Source: MPOB

Chart 1: The Top 10 Importers of Malaysian Palm Oil in the European Region for January-May 2022

Source: MPOB

 

For more info please contact Mr Fazari: fazari@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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