Palm kernel or babassu oil and fractions market in Ecuador

Earlier Report Observations

From 2018 to 2020, the market volume for palm kernel or babassu oil and fractions in Ecuador grew from 25 635 tons to 30 278 tons. This expansion took place as a severe bud rot disease reduced planted area and constrained domestic production, while a simultaneous sharp drop in exports increased the supply available domestically. The passage of the Palm Oil Law in 2019 established new sustainability and zoning regulations, which further shaped production practices and market access.

The market volume then declined to 24 679 tons by 2022. This period was marked by the approval of the EU's Deforestation-Free Products Regulation, which mandated traceability and due diligence for exports, requiring the industry to adapt its supply chains. Concurrently, public financing and credit programs were initiated to support the expansion of palm cultivation, aiming to strengthen the sector's long-term capacity.

In 2023, the market volume recovered to 28 895 tons, primarily driven by a significant rise in imports to 8 804 tons. The El Niño weather phenomenon affected crop yields, while the sector continued to adapt to the EU's regulatory requirements through the implementation of digital traceability systems. The number of extraction companies reached 38, indicating an expansion in processing infrastructure.

Production palm kernel or babassu oil and fractions in Ecuador

In kind, 2017-2020, t

From 2017 to 2020, Ecuador ranked 12th globally in the production of palm kernel or babassu oil and fractions.

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

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

In Ecuador, production of palm kernel or babassu oil and fractions declined for the third year in a row. In 2020, the country produced 37 100 tonnes, showing a moderate year-over-year decrease of 4.6%. Over the 2017-2020 period, production fell by 23%, with an annualized decline rate of 8.4%.

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

Exports palm kernel or babassu oil and fractions from Ecuador

Exports in kind, t

Exports of palm kernel or babassu oil and fractions from Ecuador dropped for the second consecutive year. In 2020, Ecuador exported 7 453 tonnes, a 24.0% decrease compared to the previous year. Between 2017 and 2020, exports plummeted by 62.9%, equivalent to an annualized rate of 28.2%. The highest export volume was recorded in 2018 at 21 565 tonnes. The largest decline occurred in 2019 with a 54.5% drop, while the biggest increase was in 2018 at 7.2%.

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

From 2017 to 2020, the main destinations for Ecuador's exports of palm kernel or babassu oil and fractions were Colombia, accounting for 61.1% of exports, Mexico with 14.5%, and Brazil at 6.6%. Together, these three countries made up 82.1% of total export flows.

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

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

Exports in value, K $ US

The value of exported palm kernel or babassu oil and fractions from Ecuador fell for the third year in a row. In 2020, export value stood at 6 429 thousand US dollars, down 12.6% from the previous year. Over the 2017-2020 period, exports decreased by 79.4%, with an annualized decline rate of 40.9%.

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

Between 2017 and 2020, Colombia, Mexico, and Brazil were the primary buyers of palm kernel or babassu oil and fractions from Ecuador in value terms. Colombia accounted for 59.2% of exports, Mexico for 15.6%, and Brazil for 6.8%, collectively representing 81.5% of total export value.

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

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

Imports palm kernel or babassu oil and fractions to Ecuador

Imports in kind, t

The import market for palm kernel or babassu oil and fractions in Ecuador experienced significant fluctuations from 2017 to 2020. Imports reached their lowest point in 2018 and peaked in 2020, with a 16 184-fold difference between these years. In 2020, Ecuador imported 631 tonnes, a 26.2% increase from the prior year. The minimum import volume was recorded in 2018 at 0.0 tonnes. The largest decline occurred in 2018 with a 100.0% drop, while the biggest increase was in 2019 at 1 282 048.7%.

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

From 2017 to 2020, Colombia and Malaysia dominated Ecuador's imports of palm kernel or babassu oil and fractions, together accounting for 89.7% of total import flows. Other countries held much smaller shares.

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

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

Imports in value, K $ US

The import market for palm kernel or babassu oil and fractions in Ecuador showed volatility from 2017 to 2020. Imports hit their lowest in 2018 and peaked in 2020, with a 509-fold variation between these years. In 2020, Ecuador imported 598 thousand US dollars worth of these products, a sharp 64.2% year-over-year rise. The minimum value was recorded in 2018 at 1 thousand US dollars. The largest decline was in 2018 with a 99.6% drop, while the biggest increase was in 2019 at 30 917.5%.

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

Over the 2017-2020 period, Colombia, Malaysia, and Peru consistently led Ecuador's imports of palm kernel or babassu oil and fractions in value terms. Colombia accounted for 46.3% of imports, Malaysia for 28.1%, and Peru for 20.2%, jointly making up 94.6% of total import flows.

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

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