Colombia’s palm oil exports are projected to fall to 420,000 tonnes in 2024/25 due to increasing domestic demand for biodiesel, according to a report from the US Department of Agriculture (USDA), reports Oils & Fats International.
Despite an increase in both planted area and production, exports from the world’s fourth-largest palm oil producer— which produces nearly 2 million tonnes annually—declined in the first quarter of the year, the USDA’s Foreign Agricultural Service (FAS) reported in March.
The rise in Colombia’s biodiesel blending rate has contributed to the export decline. Since 2015, the blend rate has steadily increased, reaching an estimated 12.5% in 2024. Additionally, voluntary programs allow up to 20% biodiesel blending in cargo vehicles, further driving local consumption.
The report highlighted a shift in export destinations. While Colombia has expanded its market share in Mexico—likely due to a decline in Canadian rapeseed oil imports—its presence in the European Union has diminished due to lower palm oil consumption. Overall, the share of production allocated for exports has dropped from over 40% in 2018/19 to just over 20% in 2023/24.
Meanwhile, Thailand’s palm oil exports have stabilized after a decade of growth, according to the report. The country, the third-largest palm oil producer behind Indonesia and Malaysia, accounts for 5% of global output.
Over the past decade, Thailand increased palm oil production by 80% due to an expansion in planted areas, with exports soaring twenty-fold to 800,000 tonnes. Between 2016 and 2020, the percentage of palm oil exported rose from 8% of total production to an average of 22% over the last five years.
Thailand’s export growth has been driven by strong demand from India, which has accounted for 80% of its shipments since 2017. The USDA noted that palm oil prices will be a crucial factor in determining Thailand’s export potential in 2025, as India continues to seek lower-cost alternatives.
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