Malaysian palm oil producers could capture US market share from Indonesia with better pricing — CGS International

Malaysian palm oil producers could steal the spotlight in the US, grabbing market share from Indonesia with their more competitive pricing, with the imposition of reciprocal tariff from April 9. The US has slapped Indonesian imports with a reciprocal tariff of 32%, compared with the 24% imposed on Malaysian imports. “We think this could result in supply chain shifts, with Malaysian palm oil producers potentially gaining market share in the US, due to more competitive pricing relative to their Indonesian counterparts,” CGS International said in its agribusiness sector note. In 2024, the US imported 1.75 million tonnes of palm oil (2.2% of global palm oil production), of which 88% were from Indonesia. Indonesia and Malaysia are the world’s largest and second largest palm oil producers, respectively. CGS International said it prefers plantation companies with more exposure to Malaysia, due to US tariffs, Indonesian government policies that may cause land losses, and a weakening ...