MPOC to Focus on Middle East Region as New Export Market for Malaysian Palm Oil

The Malaysian Palm Oil Council (MPOC) is focusing on the Middle Eastern region as a potential major new export market for Malaysian palm oil and believes that its trans-fat free properties as well as cost advantages can give it an edge over the edible oils in the region. This should diversify Malaysian export markets beyond depending on its two current major markets China and India, MPOC CEO Datuk Dr. Wan Zawawi Wan Ismail revealed earlier this year.  

In a recent MPOC virtual event focusing on palm oil trends and potential in the Middle East, Deputy CEO Belvinder Sron stressed this objective anew saying that the council was looking at developing the region further as a major export market.  He cited last year oils and fats import in the region at over 6 million tons of which palm oil was 41%, providing a lot of potential for growth.  One driving factor is a rising expectation for health and wellness, and along with it concern over trans-fats in food, where palm oil has the advantage being trans-fat free.  
  
Malaysia exported some 2.5 million MT of palm oil and palm oil products to the Middle East in 2020, but this number is not a reflection of the norm, as imports were heavily influenced by the impact of COVID-19 lockdowns in the region. Within the region, just five countries make up 86% of demand due to being the most populous and having the most established food industries.  These are Turkey (35%), Iran (26%), Saudi Arabia (11%), Iraq (10%) and UAE (4%).