MERCOSUR: Crude Palm Oil Market 2024

Crude Palm Oil Market Size in MERCOSUR

The MERCOSUR crude palm oil market was estimated at $X in 2022, approximately reflecting the previous year. Overall, consumption saw a relatively flat trend pattern. The level of consumption peaked at $X in 2018; however, from 2019 to 2022, consumption failed to regain momentum.

Crude Palm Oil Production in MERCOSUR

In value terms, crude palm oil production surged to $X in 2022 estimated in export price. The total production indicated notable growth from 2012 to 2022: its value increased at an average annual rate of +2.7% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, production increased by +78.1% against 2019 indices. As a result, production attained the peak level and is likely to continue growth in the immediate term.

Crude Palm Oil Exports

Exports in MERCOSUR

In 2022, after three years of decline, there was significant growth in shipments abroad of crude palm oil, when their volume increased by 17% to X tons. Total exports indicated a moderate expansion from 2012 to 2022: its volume increased at an average annual rate of +3.5% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, exports decreased by -32.4% against 2018 indices. The pace of growth was the most pronounced in 2017 with an increase of 39% against the previous year. The volume of export peaked at X tons in 2018; however, from 2019 to 2022, the exports stood at a somewhat lower figure.

In value terms, crude palm oil exports contracted to $X in 2022. Total exports indicated a modest expansion from 2012 to 2022: its value increased at an average annual rate of +1.3% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, exports increased by +26.3% against 2019 indices. The pace of growth appeared the most rapid in 2017 when exports increased by 36%. The level of export peaked at $X in 2018; however, from 2019 to 2022, the exports remained at a lower figure.

Exports by Country

In 2022, Colombia (X tons) was the largest exporter of crude palm oil, mixing up 74% of total exports. Ecuador (X tons) ranks second in terms of the total exports with a 13% share, followed by Peru (12%). Brazil (X tons) took a relatively small share of total exports.

Exports from Colombia increased at an average annual rate of +12.0% from 2012 to 2022. At the same time, Peru (+55.8%) displayed positive paces of growth. Moreover, Peru emerged as the fastest-growing exporter exported in MERCOSUR, with a CAGR of +55.8% from 2012-2022. By contrast, Ecuador (-9.5%) and Brazil (-16.0%) illustrated a downward trend over the same period. While the share of Colombia (+40 p.p.) and Peru (+11 p.p.) increased significantly in terms of the total exports from 2012-2022, the share of Brazil (-11.8 p.p.) and Ecuador (-35.6 p.p.) displayed negative dynamics.

In value terms, Colombia ($X) remains the largest crude palm oil supplier in MERCOSUR, comprising 70% of total exports. The second position in the ranking was taken by Ecuador ($X), with a 13% share of total exports. It was followed by Peru, with a 13% share.

From 2012 to 2022, the average annual growth rate of value in Colombia totaled +9.1%. The remaining exporting countries recorded the following average annual rates of exports growth: Ecuador (-11.3% per year) and Peru (+57.5% per year).

Export Prices by Country

In 2022, the export price in MERCOSUR amounted to $X per ton, reducing by -20% against the previous year. Over the period under review, the export price saw a noticeable decrease. The pace of growth was the most pronounced in 2021 when the export price increased by 64% against the previous year. As a result, the export price reached the peak level of $X per ton, and then fell remarkably in the following year.

Prices varied noticeably by country of origin: amid the top suppliers, the country with the highest price was Brazil ($X per ton), while Colombia ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Brazil (+5.3%), while the other leaders experienced mixed trends in the export price figures.

Crude Palm Oil Imports

Imports in MERCOSUR

In 2022, the amount of crude palm oil imported in MERCOSUR skyrocketed to X tons, growing by 29% on 2021 figures. In general, imports showed modest growth. The pace of growth was the most pronounced in 2018 with an increase of 33% against the previous year. As a result, imports attained the peak of X tons. From 2019 to 2022, the growth of imports remained at a somewhat lower figure.

In value terms, crude palm oil imports surged to $X in 2022. Total imports indicated a moderate expansion from 2012 to 2022: its value increased at an average annual rate of +2.5% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, imports increased by +57.2% against 2019 indices. The growth pace was the most rapid in 2020 with an increase of 41% against the previous year. Over the period under review, imports attained the peak figure at $X in 2018; however, from 2019 to 2022, imports failed to regain momentum.

Imports by Country

Colombia (X tons) and Brazil (X tons) prevails in imports structure, together committing 89% of total imports. It was distantly followed by Chile (X tons), generating a 5% share of total imports. The following importers - Venezuela (X tons) and Peru (X tons) - together made up 5.9% of total imports.

From 2012 to 2022, the most notable rate of growth in terms of purchases, amongst the leading importing countries, was attained by Chile (with a CAGR of +11.2%), while imports for the other leaders experienced more modest paces of growth.

In value terms, Brazil ($X), Colombia ($X) and Chile ($X) constituted the countries with the highest levels of imports in 2022, with a combined 95% share of total imports.

In terms of the main importing countries, Chile, with a CAGR of +18.3%, recorded the highest growth rate of the value of imports, over the period under review, while purchases for the other leaders experienced more modest paces of growth.

Import Prices by Country

In 2022, the import price in MERCOSUR amounted to $X per ton, growing by 4.6% against the previous year. In general, the import price showed a relatively flat trend pattern. The growth pace was the most rapid in 2021 when the import price increased by 51% against the previous year. Over the period under review, import prices reached the maximum in 2022 and is expected to retain growth in the immediate term.

There were significant differences in the average prices amongst the major importing countries. In 2022, amid the top importers, the country with the highest price was Chile ($X per ton), while Venezuela ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Chile (+6.4%), while the other leaders experienced mixed trends in the import price figures.

Source: IndexBox Platform