Palm kernel or babassu oil and fractions market in Tanzania

Earlier Report Observations

Between 2018 and 2020, the market volume for palm kernel and babassu oil in Tanzania declined, falling from 4 725 t to 3 878 t. This contraction occurred amid a structural domestic supply gap in the wider palm oil sector, which necessitated significant imports. Concurrently, the export value of palm oil from Tanzania plummeted by over 93% in 2019, a trend that also curtailed overseas shipments of palm kernel and babassu oil, while global price volatility further influenced market dynamics during this period.

The market entered a recovery phase from 2021, growing to 4 410 t by 2022, driven by a surge in import volumes which increased by 61% in 2021 alone. This import growth was fueled by buoyant consumer demand for refined palm oil, with the overall market value reaching a peak in 2022. During this time, both import and export prices for palm kernel and babassu oil hit record highs, reflecting tight global supply conditions and strong domestic consumption.

By 2023, the market volume adjusted to 4 135 t as the previous growth momentum slowed. This stabilization coincided with a moderation in international prices from their 2022 peaks. The following year, 2024, saw a renewed expansion in trade flows, with import volumes rising sharply and exports increasing for the first time since 2020, influenced by evolving global supply chain dynamics and specific demand for non-crude, non-chemically modified oil fractions.

Production palm kernel or babassu oil and fractions in Tanzania

In kind, 2017-2020, t

From 2017 to 2020, Tanzania ranked 30th 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

Tanzania's production of palm kernel or babassu oil and fractions declined for the second year in a row. In 2020, the country produced 3 433 tonnes, marking a significant year-over-year decrease of 13.4%. Over the period from 2017 to 2020, production fell by 23.7%, which translates to an annualized decline of 8.6%. The highest production level was recorded in 2018 at 4 500 tonnes, with no increase observed that year.

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

Exports palm kernel or babassu oil and fractions from Tanzania

Exports in kind, t

In 2020, Tanzania exported 57.8 tonnes of palm kernel or babassu oil and fractions, showing little change compared to 2019. Between 2017 and 2020, exports surged by 96 180%, representing an annualized growth rate of 887.4%.

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

From 2017 to 2020, Tanzania's exports of palm kernel or babassu oil and fractions were primarily directed to Burundi, which accounted for 98.9% of total exports in volume.

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

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

Exports in value, K $ US

Tanzania's exports of palm kernel or babassu oil and fractions in value terms reached 69.1 thousand US dollars in 2020, with minimal change from the previous year. Over the 2017-2020 period, exports grew by 53 856.9%, equating to an annualized increase of 714.1%.

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

During 2017-2020, Tanzania's export value was heavily concentrated on Burundi, which made up 97.6% of total export flows.

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

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

Imports palm kernel or babassu oil and fractions to Tanzania

Imports in kind, t

The market for imports showed notable volatility during these years. Imports reached their lowest point in 2018 at 225.1 tonnes and peaked in 2020 at 502.6 tonnes, representing a 2.2-fold variation. In 2020, imports amounted to 502.6 tonnes, reflecting a sharp increase of 82.4% compared to 2019. The largest decline occurred in 2018, with a drop of 51.3%.

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

From 2017 to 2020, the key sources for Tanzania's imports of palm kernel or babassu oil and fractions in volume were Indonesia (54.6% of imports), Malaysia (21.9%), and Thailand (11.0%), together accounting for 87.5% of total import flows.

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

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

Imports in value, K $ US

Market performance exhibited significant fluctuations over this period. Imports hit their lowest point in 2019 at 222.0 thousand US dollars and peaked in 2017, with a 2.9-fold difference between these years. In 2020, import value stood at 429.1 thousand US dollars, indicating a sharp rise of 93.3% from the previous year. The largest decline was recorded in 2018 at 51.7%.

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

Over the 2017-2020 period, Indonesia (46.4% of import value), Malaysia (26.1%), and Thailand (14.7%) were the main suppliers of palm kernel or babassu oil and fractions to Tanzania, collectively representing 87.2% of total import value.

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

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