KUALA LUMPUR, July 7 — Malaysia’s palm oil exports to the European Union 27 member states (EU-27) is projected to surpass 1.5 million tonnes in 2023, said the Malaysian Palm Oil Council (MPOC).
In its Palm Pulse July 2023 report, the MPOC also said the total export of Malaysian palm oil products to the EU-27 is expected to exceed three million tonnes.
From January to May 2023, export of Malaysian palm oil products to the EU declined 14 per cent or 144,065 tonnes, while total exports for this period decreased to 1.04 million tonnes from 1.19 million tonnes in the same period last year.
“The decrease in imports of total palm oil into the EU-27, compared to two years ago, attributed to the reduced consumption due to high prices, inflation, subdued demand for energy and food, and an expected improvement in local production.
“The relatively low purchases from the food sector, along with ample supplies of rapeseed oil and sunflower oil on the EU market, have contributed to the decline in palm oil imports. The accumulation of burdensome stocks of sunflower oil from the previous year and record-high imports primarily from Ukraine have further magnified the downtrend of palm oil imports,” said the report.
On the outlook of crude palm oil (CPO) prices for July 2023, MPOC said it indicates a marginal weakening trend, with a price cap at RM3,650 per tonne.
The ease of CPO prices was primarily attributed to the abundant supply of oilseeds expected in the second half of 2023 (2H 2023).
“However, it is worth noting that the development of the El Nino phenomenon is anticipated to exert upward pressure on palm oil prices, potentially keeping them above the RM3,250 mark,” it said.
On the issue of forced labour, the report said that the Malaysian government acknowledges the genuine challenges concerning labour rights in an economy heavily reliant on migrant labour.
It said sectors such as manufacturing, textiles, domestic labour, and agriculture are all affected.
“The EU regulation also acknowledges the existence of forced labour within Europe, necessitating efforts to eradicate it,” said the report. — Bernama