EU palm-oil imports continue to dwindle

EU demand for palm oil continues to decline, as is once again confirmed by the EU Commission’s import figures.

The decrease is partly due to EU regulations requiring proof of deforestation-free supply chains.

From July 1-Dec. 10, the EU-27 imported just less than 1.4 million metric tons of palm oil, which represents a 16 percent decrease on the same period in 2023.

Indonesia remained the most important country of origin, exporting just under 476,000 tons and accounting for 35 percent of the total, followed by Malaysia with 286,000 tons.

In both cases, delivery volumes fell significantly short of those recorded for July to December 2023.

Italy imported the largest volume, increasing its imports 8 percent to 478,000 tons.

The Netherlands, the central hub for onward export to other member states, was the second largest importer.

It should be noted, however, that the country is also a key location for European biofuel production.

Palm-oil imports to the Netherlands dropped 11 percent compared to the previous year to 414,000 tons.

Spain recorded the sharpest decline, more than halving its imports to 140,000 tons.

Sweden’s imports decreased around 39 percent.

On the other hand, several other EU member states increased their imports.

According to research by Agrarmarkt Informations-Gesellschaft (mbH), these countries include Greece, France, Denmark and Germany.

Receiving 115,000 tons, Germany recorded a 32 percent rise in palm-oil imports compared to the same period the previous year.

The Union zur Förderung von Oel- und Proteinpflanzen e. V. (UFOP) has pointed out that growing imports of waste oils have displaced the corresponding volumes of palm oil virtually in all member states.

The association has noted that the extensive imports of waste oils are also viewed critically because they could also come from palm oil.

In other words, supporting the use of waste oils also leads to a pull effect for palm oil, UFOP stated.

Because of this, the RED II provides for a 1.7 percent cap on waste oil-based biofuels (Annex IX, Part B of the RED II).

In Germany, the limit has been set at 1.9 percent with the approval of the EU Commission.

According to the UFOP, this cap is being circumvented by the incentive of double-counting waste oils outlined in Part A of Annex IX.

The ensuing incitement to committing fraud has sparked a debate on tightening certification and monitoring requirements.

The UFOP has called on the new German government, which will be elected next year, to reconsider and reform this incentive to create a steering instrument that promotes domestic biomethane production.

The association argues that double counting will then benefit domestic agriculture rather than biodiesel producers in Asia.