From July 2024 to early March 2025, palm oil imports into the European Union (EU) fell significantly, by about 21% compared to the same period last year. According to the latest data from the European Commission, the EU27 received nearly 1.9 million tons of palm oil from July 1, 2024 to March 6, 2025, compared to 2.4 million tons in the same period last year. Compared to the 2.8 million tons imported from July 2022 to March 2023, the drop is equally significant.
Indonesia remained the main supplier of palm oil to the EU with 608,100 tons, but its deliveries were down 23% year-on-year. Imports from Malaysia fell even more significantly, by about 30 percent, to 426,000 tons. And exports from Guatemala fell as much as 37 percent. Papua New Guinea, on the other hand, was the only country of origin to see an increase in deliveries.
The European Union Palm Oil and Protein Promotion (UFOP) attributed the drop to the expiration of the provisions of the EU Renewable Energy Directive (RED II). The provision allows palm oil biofuels to be subsidized, and the policy is set to expire in 2030, leading to a drop in demand for palm oil.UFOP also noted that biodiesel supplies in Germany, as well as in the EU, are up, mainly due to the fact that biofuels made from certain waste oils are being double-counted in greenhouse gas reduction obligations. This trend has contributed to an increase in German biodiesel exports, from a projected 1.27 million tons in 2023 to 1.62 million tons.
The palm oil import landscape and biofuel supply chain in the EU market face new challenges and changes as policy changes and market demand adjust.
