Coconut, palm kernel or babassu oil and fractions market in Madagascar

Earlier Report Observations

The market for coconut, palm kernel or babassu oil in Madagascar opened the period at 8 195 т in 2018, a year that saw Soavoanio introduce new, more resistant and productive coconut varieties to increase overall yield and strengthen the processing of coconut-derived products including oil. Market volume then contracted to 6 888 т in 2019 before recovering to 7 177 т in 2020, when the Economic Development Board of Madagascar highlighted strong investment potential in essential oils, with growing domestic and international demand likely supporting the broader oil sector.

After a dip to 6 574 т in 2021, the market expanded to 7 381 т in 2022. The following year, volume declined to 6 918 т despite sector initiatives: Soavoanio reactivated its coconut plantations to develop value-added coconut products with a focus on oil, and the U.S. removed additional 15% tariffs on certain Malagasy essential oils, facilitating exports. These developments aimed at boosting the industry, yet production continued its downward trend.

In 2024, concerns over rising edible oil imports led to requests for safeguard measures on some vegetable oil shipments, while the Ministry of Commerce investigated the traceability of a batch of cooking oil deemed unfit for consumption, tightening quality controls in the domestic market.

Production coconut, palm kernel or babassu oil and fractions in Madagascar

In kind, 2017-2020, t

Top producers of coconut, palm kernel or babassu oil and fractions, 2017-2020

World map of production of coconut, palm kernel or babassu oil and fractions, 2017-2020

Madagascar's production of coconut, palm kernel, or babassu oil and fractions has declined for the third year in a row. In 2020, the country produced 5 310 tonnes, marking a 2.8% decrease from 2019. Looking at the period from 2017 to 2020, overall production fell by 4.5%, which translates to an average annual decline of 1.5%.

Annual dynamics of production in Madagascar in kind, 2017-2020, t

In value, 2017-2020, K $ US

In 2020, the value of Madagascar's coconut, palm kernel, or babassu oil and fractions output reached 7 794 thousand US dollars, showing a modest year-over-year increase of 0.8%. However, from 2017 to 2020, production value decreased by 4.3%, averaging a 1.4% annual decline. The lowest value was recorded in 2019 at 7 734 thousand US dollars, while the highest was in 2018 at 8 660 thousand US dollars. The most significant drop occurred in 2019 with a 10.7% decrease, and the largest rise was in 2018 with a 6.4% increase.

Annual dynamics of production in Madagascar in value, 2017-2020, K $ US

Exports coconut, palm kernel or babassu oil and fractions from Madagascar

Exports in kind, t

The export market for these oils and fractions in Madagascar showed considerable volatility over the period. Exports hit their lowest point in 2017 and peaked in 2020, with a 4.4-fold difference between these years. In 2020, exports amounted to 5 tonnes, representing an 81.5% increase compared to the previous year. The largest decline was in 2019 at 21.5%, while the biggest increase occurred in 2018 with a 211.7% surge.

Annual dynamics of product's exports from Madagascar in kind, 2017-2020, t

From 2017 to 2020, France was by far the leading buyer of Madagascar's coconut, palm kernel, or babassu oil and fractions in volume terms, accounting for 95.4% of total exports.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Madagascar in kind, 2017-2020

Exports in value, K $ US

Export values exhibited significant instability throughout the timeframe. The lowest point was in 2017, and the highest was in 2020, with a 4.5-fold difference. In 2020, exports were valued at 8 thousand US dollars, up 88.2% from 2019. The most substantial decrease was in 2019 at 29.6%, and the largest increase was in 2018 with a 236.1% jump.

Annual dynamics of product's exports from Madagascar in value, 2017-2020, K $ US

During 2017–2020, France remained the dominant export partner for Madagascar's coconut, palm kernel, or babassu oil and fractions in value terms, holding an 88.6% share of total exports, with other markets making up the remainder.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Madagascar in value, 2017-2020

Imports coconut, palm kernel or babassu oil and fractions to Madagascar

Imports in kind, t

Import volumes were characterized by volatility during these years. The lowest level was in 2017, and the highest was in 2018, with a 2.4-fold difference. In 2020, imports totaled 1 872 tonnes, a 30.9% increase from the previous year. The peak volume was recorded in 2018 at 2 714 tonnes. The most significant decline occurred in 2019 with a 47.3% drop, while the largest increase was in 2018 with a 139.9% rise.

Annual dynamics of product's imports to Madagascar in kind, 2017-2020, t

From 2017 to 2020, Malaysia was the primary source for Madagascar's imports of coconut, palm kernel, or babassu oil and fractions in volume terms, accounting for 78.7% of total imports, with other countries contributing smaller shares.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Madagascar in kind, 2017-2020

Imports in value, K $ US

Import values showed noticeable fluctuations over the period. The minimum was in 2019, and the maximum was in 2018, with a 2.4-fold variation. In 2020, imports were valued at 1 876 thousand US dollars, reflecting a 46.5% year-over-year gain. The lowest value was in 2019 at 1 281 thousand US dollars, and the highest was in 2018 at 3 043 thousand US dollars. The largest decline was in 2019 at 57.9%, while the biggest increase was in 2018 with a 113.3% rise.

Annual dynamics of product's imports to Madagascar in value, 2017-2020, K $ US

Over 2017–2020, Malaysia was the main source for Madagascar's imports of coconut, palm kernel, or babassu oil and fractions in value terms, representing 80.6% of total imports, with other markets comprising the balance.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Madagascar in value, 2017-2020