Malaysian Palm Oil Export Value Rises Jan-July 2025 Despite Lower Volumes

Malaysian palm oil exports posted mixed but ultimately resilient performance in the first seven months of 2025, according to the latest data from the Malaysian Palm Oil Board (MPOB). While total export volumes declined, the overall value of these exports rose, pointing to significantly stronger global prices for the commodity.

Between January and July 2025, Malaysia exported a total of 8.26 million tonnes of palm oil. This represents a 10.5% decline compared with the 9.23 million tonnes exported during the same period in 2024.

However, despite the drop in volume, the total value of exports rose to 39.78 billion ringgit, up 2.2% from the 38.93 billion ringgit recorded the previous year. This divergence points to a substantial increase in the average price per tonne of palm oil, which helped bolster revenues for this key national industry. The average price per tonne climbed from around 4,217 ringgit in 2024 to approximately 4,816 ringgit in 2025.

Shifts in Key Export Markets

The data reveal a significant shift in demand across Malaysia's major export destinations.

Markets with declining imports:

• China: Saw the steepest decline, with exports falling 41.0% to 472,983 tonnes from 802,294 tonnes a year earlier.
• India: Although still the single largest market, imports fell 24.4% to 1.34 million tonnes from 1.77 million tonnes in 2024.
• European Union (EU): Continued its downward trend, with imports falling 23.2% to 597,226 tonnes compared with 777,747 tonnes the previous year.

Markets showing strong growth:

• The Philippines: Emerged as an exceptional growth market, with exports surging by a remarkable 31.0% to reach 431,671 tonnes.
• Kenya: Also showed strong demand, with imports up 8.7% to 610,842 tonnes, making it the second-largest market for Malaysian palm oil during this period.

Analysis and Outlook

The decline in exports to traditionally strong markets such as India, China and the EU highlights potential challenges, including the impact of higher prices on demand, increased competition, or shifting trade policies. By contrast, the strong growth seen in markets such as the Philippines and Kenya underscores the success of Malaysia's market diversification efforts and points to rising demand in Southeast Asia and Africa.

The overall increase in export value marks a positive development for the Malaysian palm oil industry, demonstrating its ability to command higher prices on the global stage and offset the impact of lower export volumes. This trend will be crucial for stakeholders as they navigate the dynamic and evolving global commodities landscape for the remainder of the year.