Imports of palm oil to the EU continue to decline

EU demand for palm oil continues to decline, driven by EU requirements to prove deforestation in supply chains, according to the Oilseeds and Grains Promotion Union, founded by the German Farmers’ Association (UFOP).

From July 1, 2024, to December 10, 2024, EU countries imported almost 1.4 mln tonnes of palm oil, which is 16% less than in the same period last year. Indonesia remains the most important country of origin with almost 476 thsd tonnes and a 35% share, followed by Malaysia with 286 thsd tonnes. In both cases, the volumes are significantly lower than last year.

Italy imported the largest amount (up 8%) of 478 thsd tonnes of oil. The Netherlands is the second largest importer as a central hub for further exports. However, the Netherlands is also a center of European biofuel production. At the same time, the country purchased palm oil by about 11% less than in the same period last year (414 thousand tons).

The largest decline was recorded in Spain, which reduced imports by more than half – to 140 thousand tons; Sweden received about 39% less. However, other EU member states increased their imports. According to a study by Agrarmarkt Informations-Gesellschaft (mbH), these include Greece, France and Denmark, as well as Germany. The Federal Republic received 115 thousand tons of palm oil, 32% more than in the same period last year.

The UFOP notes that the increase in imports of used oils has led to the displacement of corresponding volumes of palm oil in almost all states of the Union. However, large imports of used cooking oils are also subject to critical scrutiny, as they may also be sourced from palm oil.

Legislation provides for a limit on biofuels from waste oils to 1.7% of the total share. In Germany, the limit was set at 1.9% with the approval of the EU Commission, but, according to the association, it is circumvented by double counting. UFOP calls for a revision of the limit and turning it into a control tool to promote domestic biomethane production.

Tags: EU, palm oil