Italy – Top Buyer of Côte d’Ivoire’s Palm Kernel Oil
Reading time: 2 minutes
FAS Abidjan (Post) forecasts Côte d’Ivoire’s Palm Kernel production in MY2022/23 to 139,000MT, assuming a 5 percent output from FFB, which is a 3.4 percent decrease compared to the USDA official figure for MY2022/23. Post estimates Côte d’Ivoire’s Palm Kernel production in MY2021/22 to reach 135,000MT, a 2.8 percent decrease compared to USDA official figure in the same period.
Total Palm Kernel consumption for MY 2022/23 is expected at 135,000MT, and 139,000MT for MY 2021/22. Palm Kernel is used in local mills to produce Palm Kernel Oil. Post expects Palm Kernel export to reach 2,000MT in 2022/23. Total Palm Kernel exported in MY 2021/22 is estimated at 340MT, with Benin as the primary destination.
Post forecasts production of Palm Kernel Oil (PKO) to reach 58,000MT in MY2022/23. Post also estimates PKO production in MY2021/22 at 56,000MT. Post forecasts PKO exports at 25,000MT in MY2022/23, a 4 percent increase from the MY 2021/22 estimate of 24,000MT. The biggest importers of KPO from Côte d’Ivoire over the last three years are Italy, Spain, Mali, Morocco, and Burkina Faso.
Palm Oil Policy in Côte d’Ivoire
Côte d’Ivoire possesses 300,000 HA of industrial Palm Oil plantations and 80,000 HA of smallholder Palm Oil plantations. The country was the first African Palm Oil exporter and the second largest producer behind Nigeria. There are 32 cooperatives that work to provide production best practices and facilitate access to Oil mills for smallholder plantations. The AIPH (Inter-professional Association of Oil-Palm Industry) is a professional association recognized by Decree No. 2015-127 of March 4, 2015. This association coordinates with every segment of the Palm Oil value chain. Specifically, they work with the following:
- FFB producers: National Federation of Cooperatives of Oil-Palm Farmers of Côte d’Ivoire (FENACOPAH-CI) and Association of Professionals of Oil-Palm Agricultural Society (APROSAPCI),
- Agro-industrial companies (Oil mills) that produce crude Palm Oil and those that refine the Oil: Organization of Palm Oil Processors (GITHP)
The Conseil Hevea Palmier à Huile is the regulatory, control, and monitoring body for the activities of the Hevea and Oil Palm sectors. The Oil Palm sector has distinguished itself by its good organization through AIPH. Therefore, unlike the Councils of the coffee-cocoa and cotton-cashew sectors, this one only focuses on the regulatory function, not the development function.
The Government of Côte d’Ivoire (GOCI), through its regulation body of the Palm Oil sector, the Conseil Hevea Palmier à Huile, implemented a national development plan for the Palm Oil sector called “Plan Palmier”. The third phase of this plan, in 2015, has allowed the industry to reach its current production of 600,000MT of CPO. Palm Oil products represent more than 90 percent of total Oilseed products, and a significant rise in raw material would dramatically affect the end-use product. An increase in the price of FFB also impacts the final price of CPO produced by Palm Oil mills units.
CPO is the primary source of material for vegetable Oil, the most used source of cooking Oil in the country. The rise in the price of FFB would then push processing units to raise the price of the CPO sold to refining units. To fix this issue, local authorities represented by Conseil Hevea et Hevea Palmier à Huile, with the approbation of Interprofessional of Palm Oil Actors (AIPH), set up a threshold for the FFB price below the international price. These actions contributed to slowing the price increases for vegetable Oil and other derived food products made from Palm Oil in the local market.
Other sources: USDA
Try AgFlow Free
Access Free On Updates for Corn, Wheat, Soybean,
Barley, and Sunflower Oil.
No Credit Card Required & Unlimited Access In Time