Kuala Lumpur: Malaysia is on track to export up to 16 million tonnes of palm oil in 2026, supported by lower domestic stock levels, industry experts have said, The Edge reported.
Thomas Mielke, executive director of ISTA Mielke GmbH (Oil World), highlighted that export performance in January has been promising, pointing to a positive start for the year. He noted that overall production for 2026 is expected to remain slightly below 20 million tonnes.
“The year-on-year growth observed in the January-March quarter is helping sustain production during the first few months of the year,” Mielke told delegates at the 37th Palm and Lauric Oils Price Outlook Conference and Exhibition (POC) 2026 in Kuala Lumpur.
Data from the Malaysian Palm Oil Board (MPOB) shows that Malaysia’s palm oil exports totaled 16.61 million tonnes in 2025. Exports in January 2026 rose 11.44% to 1.48 million tonnes, up from 1.33 million tonnes in December 2025. However, crude palm oil (CPO) production in January fell 13.78%, to 1.58 million tonnes from 1.83 million tonnes the previous month.
Looking ahead, Mielke said Malaysia’s share of the global palm oil market is expected to decline over the next decade, meeting only 15% to 20% of global demand for oils and fats. He warned that this could create challenges for consumers unless Indonesia adjusts its biodiesel mandates.
“Indonesia may struggle to maintain the B40 biodiesel mandate in 2027 if production falls and the price gap with gas oil widens, potentially reducing palm oil exports,” Mielke explained.
He added that if Indonesian production continues to decline in 2027 and 2028, global palm oil growth could contract by 1.3 million tonnes by 2030, down from an average annual growth of 2.9 million tonnes in 2020.
