South Africa: Palm Kernel Oil Market Overview 2021

Palm Kernel Oil Market Size in South Africa

For the third consecutive year, the South African palm kernel oil market recorded decline in sales value, which decreased by -X% to $X in 2019. Over the period under review, consumption saw a relatively flat trend pattern. The growth pace was the most rapid in 2008 when the market value increased by X% year-to-year. Palm kernel oil consumption peaked at $X in 2011; however, from 2012 to 2019, consumption remained at a lower figure.

Palm Kernel Oil Exports

Exports from South Africa

In 2019, shipments abroad of palm kernel and babassu oil decreased by -X% to X tonnes for the first time since 2016, thus ending a two-year rising trend. Overall, exports saw a pronounced shrinkage. The pace of growth appeared the most rapid in 2017 with an increase of X% against the previous year. Exports peaked at X tonnes in 2007; however, from 2008 to 2019, exports failed to regain the momentum.

In value terms, palm kernel oil exports contracted to $X in 2019. Over the period under review, exports continue to indicate a perceptible descent. The pace of growth was the most pronounced in 2017 when exports increased by X% against the previous year. Over the period under review, exports reached the peak figure at $X in 2011; however, from 2012 to 2019, exports failed to regain the momentum.

Exports by Country

Zimbabwe (X tonnes) was the main destination for palm kernel oil exports from South Africa, accounting for a X% share of total exports. Moreover, palm kernel oil exports to Zimbabwe exceeded the volume sent to the second major destination, Swaziland (X tonnes), eightfold. The third position in this ranking was occupied by Zambia (X tonnes), with a X% share.

From 2007 to 2019, the average annual growth rate of volume to Zimbabwe totaled -X%. Exports to the other major destinations recorded the following average annual rates of exports growth: Swaziland (+X% per year) and Zambia (-X% per year).

In value terms, Zimbabwe ($X) remains the key foreign market for palm kernel oil exports from South Africa, comprising X% of total exports. The second position in the ranking was occupied by Swaziland ($X), with a X% share of total exports. It was followed by Zambia, with a X% share.

From 2007 to 2019, the average annual rate of growth in terms of value to Zimbabwe amounted to -X%. Exports to the other major destinations recorded the following average annual rates of exports growth: Swaziland (+X% per year) and Zambia (-X% per year).

Export Prices by Country

In 2019, the average palm kernel oil export price amounted to $X per tonne, growing by X% against the previous year. In general, the export price saw a relatively flat trend pattern. The pace of growth was the most pronounced in 2014 an increase of X% y-o-y. As a result, export price reached the peak level of $X per tonne. From 2015 to 2019, the growth in terms of the average export prices remained at a somewhat lower figure.

Prices varied noticeably by the country of destination; the country with the highest price was Malawi ($X per tonne), while the average price for exports to Swaziland ($X per tonne) was amongst the lowest.

From 2007 to 2019, the most notable rate of growth in terms of prices was recorded for supplies to Malawi, while the prices for the other major destinations experienced mixed trend patterns.

Palm Kernel Oil Imports

Imports into South Africa

In 2019, approx. X tonnes of palm kernel and babassu oil were imported into South Africa; remaining relatively unchanged against the year before. Over the period under review, imports saw a relatively flat trend pattern. The most prominent rate of growth was recorded in 2008 when imports increased by X% y-o-y. As a result, imports reached the peak of X tonnes. From 2009 to 2019, the growth imports remained at a lower figure.

In value terms, palm kernel oil imports shrank notably to $X in 2019. In general, imports showed a relatively flat trend pattern. The growth pace was the most rapid in 2008 with an increase of X% against the previous year. Imports peaked at $X in 2011; however, from 2012 to 2019, imports failed to regain the momentum.

Imports by Country

In 2019, Indonesia (X tonnes) constituted the largest palm kernel oil supplier to South Africa, with a X% share of total imports. Moreover, palm kernel oil imports from Indonesia exceeded the figures recorded by the second-largest supplier, Malaysia (X tonnes), fourfold.

From 2007 to 2019, the average annual rate of growth in terms of volume from Indonesia totaled +X%.

In value terms, Indonesia ($X) constituted the largest supplier of palm kernel oil to South Africa, comprising X% of total imports. The second position in the ranking was occupied by Malaysia ($X), with a X% share of total imports.

From 2007 to 2019, the average annual rate of growth in terms of value from Indonesia totaled +X%.

Import Prices by Country

The average palm kernel oil import price stood at $X per tonne in 2019, declining by -X% against the previous year. Over the period under review, the import price recorded a relatively flat trend pattern. The most prominent rate of growth was recorded in 2008 an increase of X% y-o-y. Over the period under review, average import prices reached the peak figure at $X per tonne in 2011; however, from 2012 to 2019, import prices stood at a somewhat lower figure.

Average prices varied noticeably amongst the major supplying countries. In 2019, the country with the highest price was Malaysia ($X per tonne), while the price for Indonesia stood at $X per tonne.

From 2007 to 2019, the most notable rate of growth in terms of prices was attained by Indonesia.

Source: IndexBox AI Platform

Frequently Asked Questions (FAQ) :

What are the largest markets for palm kernel and babassu oil in the world?

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The countries with the highest volumes of palm kernel oil consumption in 2019 were Indonesia (2.8M tonnes), Malaysia (1.9M tonnes) and China (802K tonnes), together accounting for 66% of global consumption.

What are the largest producers of palm kernel and babassu oil in the world?

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Indonesia (4.7M tonnes) remains the largest palm kernel oil producing country worldwide, accounting for 56% of total volume. Moreover, palm kernel oil production in Indonesia exceeded the figures recorded by the second-largest producer, Malaysia (2.3M tonnes), twofold. Thailand (276K tonnes) ranked third in terms of total production with a 3.3% share.

What are the leading suppliers of palm kernel and babassu oil to South Africa?

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In value terms, Indonesia ($20M) constituted the largest supplier of palm kernel oil to South Africa, comprising 79% of total imports. The second position in the ranking was occupied by Malaysia ($5.1M), with a 21% share of total imports.

What are the leading importers of palm kernel and babassu oil from South Africa?

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In value terms, Zimbabwe ($490K) remains the key foreign market for palm kernel oil exports from South Africa, comprising 84% of total exports. The second position in the ranking was occupied by Swaziland ($40K), with a 6.9% share of total exports. It was followed by Zambia, with a 4.7% share.

What is the average export price for palm kernel and babassu oil in South Africa?

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In 2019, the average palm kernel oil export price amounted to $1,191 per tonne, picking up by 9.8% against the previous year.

What is the average import price for palm kernel and babassu oil in South Africa?

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In 2019, the average palm kernel oil import price amounted to $728 per tonne, which is down by -21.5% against the previous year.