Malaysia Expects Palm Exports to China to be Resilient Amid Price Pressure
Malaysian palm oil exports to China will "remain resilient" this year despite their premium over rival oils and Chinese consumers’ shifting buying patterns, according to the Deputy Minister of Plantation and Commodities Chan Foong Hin.
Palm Oil Exports to China Declined in 2024
Malaysia’s exports of palm oil to China declined in 2024 due to lower soybean prices compared to palm oil and lower consumption of cooking oil, said Chan during a press conference after the China-Malaysia oils and fats forum. The population is aging and shrinking, and consumer behavior is changing, with people becoming more health-conscious, affecting buying patterns in China.
Palm Kernel Oil Exports to China Grew
China is the second-largest importer of Malaysian palm oil after India. Chan said that palm kernel oil exports to China grew last year on rising demand. "Palm oil and palm-based products to China reached a value of RM10.57 billion (S$3.2 billion) in which the export volume of palm kernel oil saw an increase of 40 per cent, mainly supplied to China’s oleochemical industry for the production of surfactants," he said.
Challenges Ahead
Meanwhile, Malaysian Palm Oil Board (MPOB) director-general Ahmad Parveez Ghulam Kadir said the palm oil premium over soyoil would continue to be a challenge in attracting demand but remained optimistic on demand from China. "If exports do not increase (this year), we hope we can still maintain the exports we had last year," he said.
Data and Outlook
According to data from MPOB, Malaysia’s palm oil exports to China totalled 1.39 million tonnes in 2024, down 5.3 per cent compared to the year before.
Conclusion
In conclusion, Malaysia expects its palm oil exports to China to be resilient this year despite the challenges posed by price pressure and changing consumer behavior. While there are concerns about the premium over rival oils and the decline in demand, Malaysia remains optimistic about the demand from China.
FAQs
Q: What is the outlook for Malaysian palm oil exports to China this year?
A: Malaysia expects its palm oil exports to China to be resilient this year despite price pressure.
Q: Why did Malaysian palm oil exports to China decline in 2024?
A: Lower soybean prices compared to palm oil and lower consumption of cooking oil led to the decline.
Q: What is the outlook for palm kernel oil exports to China?
A: Palm kernel oil exports to China grew last year on rising demand, with an increase of 40 per cent in export volume.
Q: What is the challenge facing Malaysian palm oil exports to China?
A: The palm oil premium over soyoil is a challenge in attracting demand.
