KUCHING, July 19: The Ministry of Plantation Industries and Commodities (MPIC) is optimistic that China will increase its palm oil imports despite the current global challenges.
According to a press statement issued by MPIC Minister Datuk Zuraida Kamaruddin, following Chinese Foreign Minister Wang Yi’s statement during his visit to Malaysia, the world’s second-largest economy is ready to import more palm oil, tropical fruits, and other agricultural products from Malaysia.
“This is surely a good piece of news given the uncertainties shrouding the international palm oil trade as evident by plummeting crude palm oil prices to sub-RM4,000 metric tonnes (MT) level after a spike to above RM8,000 per MT in March 2022.
“China imported 6.38 million MT of palm oil last year, inclusive of 1.67 million MT from Malaysia,” she said.
She went on to say that for the five-month period from January to May 2022, the high vegetable oil prices have deterred buyers and traders in China from actively importing palm oil and other edible oils, hence prompting palm oil imports to drop by 58.3 per cent year-on-year (y-o-y) or 1.52 million MT to only 960,000 MT.
“From January-June 2022, Malaysian palm oil exports to China stood at 565,842 MT, which is 175,640 MT or 31 per cent lower compared to the same period of last year.”
In addition, Zuraida noted that it is unlikely for China’s total palm oil imports in 2022 to come close to the volume recorded in the prior year.
“A few factors that influence the prices of palm oil like the demand from downstream sectors, the soybean situation in China, Indonesia’s policies to curb domestic palm oil price hikes, and tightness in the supply of global edible oils will continue to affect the prospects of China’s palm oil imports from Malaysia.
“China, which does not produce palm oil on its own, is currently the world’s second-largest market for the commodity after India.
“China also supports and accepts the Malaysian Sustainable Palm Oil (MSPO) certification, which has enabled the palm oil industry in China to enhance its corporate image while fulfilling its corporate social responsibilities and realising China’s National Green Policy,” she explained.
She continued stating that the MSPO helps portray the positive image of China’s manufacturers in support of Malaysia’s efforts to improve the living standards of oil palm smallholders, as well as complement the goals of China’s Belt and Road Initiative (BRI) towards socio-economic development of both countries.
“Like I have explained during my numerous trade missions abroad, palm oil is used in
numerous sectors and is fast gaining popularity around the world.
“Palm oil is more than just for cooking. It is also an ingredient for many other products, and in fact, palm oil has more health benefits than other edible oils.
“In China, about 75 per cent of its imported palm oil is consumed in the food sector, including catering, instant noodles, food processing, and bakery confectionery sectors, among others,” she pointed out.
Furthermore, Zuraida acknowledged that palm products other than palm oil have a significant market share in non-food sectors, particularly in the oleochemicals industry.
“MPIC will continue with its various campaigns and programmes to promote the use
of palm oil around the world and play a key role in the global movement to champion the goodness of palm oil,” she commented. — DayakDaily
