Europe (Jan – Aug) 2021

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

Table 3: Malaysia’s Export to Europe Region (MT)
 COUNTRYJan-Aug 2021Jan-Aug 2020Change (Vol.)Change (%)Jan-Dec 2020
EU-27
Netherlands642,398747,006(104,608)(14.00)1,072,952
Italy211,393309,091(97,697)(31.61)439,053
Sweden67,75667,1486080.91103,440
Spain46,764138,502(91,738)(66.24)198,287
Denmark39,82332,4257,39822.8252,832
Greece39,2659,04930,216333.9316,006
Germany14,41015,877(1,466)(9.24)21,462
Croatia6,3725,56281014.567,999
Belgium4,5261,9872,539127.773,174
Romania2,4034,160(1,757)(42.23)6,559
Bulgaria1,0507,638(6,588)(86.25)10,706
Portugal163271(108)(39.93)328
France136176(40)(22.58)259
Latvia731,039(966)(92.97)1,794
Lithuania6061(0)(0.15)97
Poland47516(469)(90.96)516
Austria60(60)(100.00)60
Cyprus18(18)(100.00)42
Estonia24(24)(100.00)24
Hungary1,125(1,125)(100.00)1,451
Slovenia46(46)(100.00)46
Sub-Total1,076,6401,341,780(265,140)(19.76)1,937,088
NON-EU
United Kingdom5,95010,728(4,777)(44.53)16,143
Switzerland739798(59)(7.35)1,516
Albania1841,225(1,041)(85.01)1,843
Norway474435.8122
Sub-Total6,92012,794(5,875)(45.92)19,524
EASTERN EUROPE & CAR
Georgia15,42913,5391,89013.9619,470
Ukraine13,75345,370(31,617)(69.69)49,697
Kazakhstan8,20110,606(2,404)(22.67)16,066
Russia4,5407,976(3,436)(43.08)10,967
Uzbekistan4,01926,902(22,884)(85.06)30,210
Kyrgyzstan73046326757.67591
Tajikistan316316119
Turkmenistan89944(854)(90.55)1,358
Moldova22162(140)(86)162
Sub-Total47,099105,962(58,863)(56)128,640
Grand total1,130,6581,460,536(329,878)(22.59)2,085,252
Source: MPOB

From January to August 2021, Malaysian palm oil export to the Europe region was recorded at 1,130,658 MT, a decrease of 329,878 MT or by 22.6% from 1,460,536 MT recorded during the same period of 2020. The main reason for the drop was due a combination of tightening supply of palm oil as lower production caused by labour shortages and lower demand from the food manufacturing and biodiesel sectors.  Netherlands, Italy and Sweden are the three biggest destinations of Malaysian palm oil in the EU. In Italy, consumption of palm oil is practically the same as the newly opened biofuels plants went into full operation to fulfil compulsory blending mandates this year. This plant has the capacity to process 750,000 MT of vegetable oils and waste fats and oils on annual basis.

Netherlands remained as the leading importer of Malaysian palm oil in the EU and Europe region with 642,398 MT, but this is a decrease of 104,608 MT or by 14% 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 more competitively priced compared to Malaysia. Nevertheless, it is expected as the widening price spread between soybean oil and palm oil in the recent months will see a renewed interest in palm oil. Netherlands is expected to remain firm as a palm oil importing country as they are the main hub for palm oil to be re-exported to many countries in the Europe region.

Greece recorded the largest increase in import volume, importing a total of 39,265 MT between January and August 2021, an increase of 334% compared to the same period of the previous year. This is mainly due to the country opening up the economy after the Covid lockdowns. In addition, despite the current price of palm oil it is still much lower than other competing oils such as sunflower oil and the price gap makes palm oil 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 47.4% 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 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-Aug
2021
Jan-Aug
2020
Change
(Vol.)
Change
(%)
CPO223,632350,212(126,580)(36.14)
CPO for RSPO from Segregated & Int Sustainability n Carbon Certification193,704207,799(14,095)(6.78)
CPO International Sustainability and Carbon Certification118,235256,496(138,261)(53.90)
RBD PS117,864137,137(19,273)(14.05)
PAO92,02592,773(748)(0.81)
RBD PL78,16369,1009,06313.12
PFAD63,82555,7438,08214.50
PMF / RBD PMF56,71964,392(7,673)(11.92)
RBD PO48,515101,212(52,697)(52.07)
RBDPS for RSPO from Segregated34,15226,9737,17926.61
Others103,82498,6995,1255.19
Grand Total1,130,6581,460,536(329,878)(22.59)
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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