Palm-kernel oilcake market in South America

Earlier Report Observations

The market volume of palm-kernel oilcake in South America experienced a significant contraction in 2019, falling to 274 тыс. т from 336 тыс. т the previous year. This was followed by a steady recovery over the next four years, with volume reaching 334 тыс. т in 2023, nearly returning to its 2018 level. In value terms, the market followed a similar trajectory, growing from 63.1 млн долл. США in 2019 to 80.3 млн долл. США in 2023.

The market's recovery was underpinned by the expansion of integrated, sustainable palm oil operations in Brazil. Major players like Grupo BBF and Agropalma scaled up cultivation, extraction, and biofuel production, which directly increased the output of palm-kernel oilcake as a by-product. Concurrently, rising demand for biofuels, supported by environmental policies, provided a sustained incentive for processing activity, further bolstering production volumes.

In 2024, new global factors emerged that influence the palm oil sector from which this by-product derives. Indonesia imposed export taxes on palm oil mill effluent (POME) due to rising biofuel demand in the European Union, while the El Niño weather phenomenon affected harvest yields in major producing countries, introducing volatility to the global supply chain.

Production palm-kernel oilcake in South America

In kind, 2017-2020, K t

Top producers of palm-kernel oilcake, 2017-2020

World map of production of palm-kernel oilcake, 2017-2020

In South America, palm-kernel oilcake production reached 288.3 thousand tons in 2020, showing a modest increase of 3.3% compared to 2019. Looking at the broader period from 2017 to 2020, production declined by 15.1%, which translates to an average annual decrease of 5.3%. The lowest production level was recorded in 2019 at 279.1 thousand tons, while the peak occurred in 2018 with 340.6 thousand tons. The most significant drop in production was observed in 2019, when it fell by 18.1%.

Annual dynamics of production in South America in kind, 2017-2020, K t

In value, 2017-2020, K $ US

In 2020, the value of palm-kernel oilcake production in South America was 65 038 thousand US dollars, marking a slight increase of 1.3% from the previous year. Over the period from 2017 to 2020, production value decreased by 7.6%, averaging an annual decline of 2.6%. The minimum value was recorded in 2019 at 64 212 thousand US dollars, while the maximum was in 2018 at 76 366 thousand US dollars. The largest decline occurred in 2019 with a 15.9% drop, whereas the biggest increase was in 2018, rising by 8.5%.

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

Exports palm-kernel oilcake from South America

Exports in kind, t

The market exhibited volatility throughout the observed period. Exports reached their lowest point in 2017 and peaked in 2018, with a 1.9-fold difference between these years. In 2020, South America's palm-kernel oilcake exports amounted to 2 818 tons, representing a sharp contraction of 41.5% compared to the previous year. The maximum export volume was recorded in 2018 at 5 046 tons, with the largest increase also occurring that year at 85.4%.

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

From 2017 to 2020, palm-kernel oilcake exports from South America were primarily directed to the United Kingdom, which accounted for 96.9% of total exports in volume terms.

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

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

Exports in value, K $ US

The data reveals irregular changes, indicating a volatile market environment. Export values bottomed out in 2017 and peaked in 2018, with a top-to-bottom ratio of 2 times. In 2020, palm-kernel oilcake deliveries from South America reached 636 thousand US dollars, which is 42.6% less than the previous year. The maximum value was recorded in 2018 at 1 131 thousand US dollars, with the largest increase also in 2018 at 100.5%.

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

During 2017–2020, 97.4% of the total export value of palm-kernel oilcake from South America was directed to the United Kingdom, making this market overwhelmingly dominant.

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

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

Imports palm-kernel oilcake to South America

Imports in kind, t

There were noticeable fluctuations in market performance during the period. Import volumes reached their minimum in 2020 and peaked in 2019, with a top-to-bottom ratio of 26 times. In 2020, South America's palm-kernel oilcake imports totaled 0.3 tons, representing a steep contraction of 96.1% compared to the previous year. The maximum import volume was recorded in 2019 at 7 tons, with the largest increase also in 2019 at 984.0%.

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

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

Imports in value, K $ US

The market showed signs of volatility over the observed period. Import values varied 9.7 times from the low in 2018 to the high in 2019. In 2020, cross-border shipments of palm-kernel oilcake to South America totaled 0.2 thousand US dollars, representing an 84.0% reduction year-over-year. The maximum value was recorded in 2019 at 1 thousand US dollars, with the largest increase also in 2019 at 873.7%.

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

In 2017–2020, the key suppliers of palm-kernel oilcake to South America were Spain and Italy, whose combined share reached 9.0% of total imports in value terms.

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

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