Malaysian Palm Oil Update: Output Climbs As Exports Show Mixed Results In August 2025

Malaysia's palm oil industry saw a notable increase in production and total stock levels in August 2025, according to the latest data. While crude palm oil output grew, the export market presented a mixed picture, with some products posting strong gains while others suffered sharp declines.

Production And Stocks Rise

Total crude palm oil production rose by 2.35% to reach 1.855 million tonnes in August. This growth was driven by strong performances in Sabah (up 3.99%) and, in particular, Sarawak, which recorded a notable 14.57% increase in output. This growth offset a slight 1.82% decline in production in Peninsular Malaysia.

The rise in production contributed to a 4.18% increase in total palm oil stocks, which now stand at 2.20 million tonnes. The most significant regional change was in Sarawak, where stocks surged by a massive 48.90%. Conversely, stocks in Sabah fell by 9.97%.

Other key production figures include:

• Palm kernel production rose by 2.66%.
• However, crude palm kernel oil production fell by 4.39%.

Mixed Export Performance

The export market showed varied performance across different product categories. While palm oil exports remained relatively stable, edging down just 0.29%, other products saw sharper swings.

The standout performer was palm kernel oil, whose exports jumped by an impressive 22.91%. On the other hand, several categories recorded significant declines:

• Palm kernel cake exports fell by 30.82%.
• Biodiesel exports dropped sharply by 37.32%.
• Oleochemical exports also declined by 7.28%.

Imports And Prices

On the import side, there was a significant development: no crude palm oil was imported in August, a 100% drop from July. Total palm oil imports also fell by 19.66%.

For local producers, the fresh fruit bunch (FFB) price saw a healthy 5.72% increase, rising to 47.35 ringgit.

Key Takeaways For August 2025:

• Strong production growth: Rising crude palm oil output, led by East Malaysia, points to a positive production trend.
• Higher stocks: Elevated stock levels, particularly in Sarawak, will be a key factor to watch for future price movements.
• Mixed export market: While palm kernel oil exports are thriving, sharp declines in biodiesel and palm kernel cake point to a shift in international demand.
• Falling imports: The halt in crude palm oil imports suggests sufficient domestic supply.
• Higher prices for growers: The rise in FFB prices is a welcome sign for plantation owners.

In short, August 2025 was a month of growth for Malaysian palm oil production and stocks. However, the export market remains dynamic and will be an important area to watch in the coming months.