Palm oil in the global oils & fats market
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Palm oil in the global oils & fats market

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Palm oil in the global oils & fats market Palm oil in the global oils & fats market Presentation Transcript

  • PALM OIL IN THE GLOBAL OILS & FATS MARKET BY MALAYSIAN PALM OIL COUNCIL EGYPT
  • Presentation Outline MPOC Role and Functions Overview of Global Oils & Fats Scenario Palm Oil in The Global Oils & Fats Market Palm Oil in The Egyptian Market
  • MPOC Objectives Enhance trade opportunities in the market place Encourage product diversification Improve understanding of palm oil Safeguard Malaysian palm oil as a leading Vegetable oil
  • MPOC Activities MARKETING & MARKET DEVELOPMENT PROMOTIONS & BRANDING SCIENCE & ENVIRONMENT Palm Oil Trade Fairs and Seminars (POTS) Palm Oil Industry Leadership Award (PILA) Palm Oil Industry Leadership Forum (PILF) Dialogue with traders/government officials Consumer Education Programmes Trade Exhibitions Publication/Advertising Activities Market Missions and Studies Trade/Technical Seminars PRIME/PRIME-INVEST CARES PR activities – Familiarization Programmes Lobbying Activities SUPPORTED BY INDUSTRY PARTICIPATION
  • MPOC Worldwide Offices 10 OFFICES COVERING 6 REGIONS
  • Global Supply & Demand Situation  World population increase by 70-80 mil / year  Demand of oils & fats expands by 4-5 Mn. MT/year  World arable land stagnant / shrinking due to population growth. By 2020, arable land will drop to less than 1 acre per capita. Future of palm oil is driven by growth in demand for food, oleo chemicals and bio fuel due to population and economic growth
  • Market Challenges -Growth in World Population/Food Security Net exporters of oils and fats – Asia Pacific (palm oil) & Americas (soybean) AND the rest of the countries are net importers China EU-27 Net Importers India Net Exporters North Africa Pakistan FAO estimates that by 2050, rising population and incomes will require 70 percent increase in global food production Bangladesh Iran Mexico Indonesia Egypt Malaysia Japan Argentina Turkey Brazil South Africa Ukraine South Korea Canada Nigeria Philippines Taiwan -15000 -10000 Source: Oil World, Dec 2012 -5000 Russia 0 5000 10000 15000 20000 25000
  • World Oils & Fats Production 60,000 50,000 (‘000 mt) 40,000 30,000 20,000 10,000 - 1990 2000 2010 2012 Palm Oil 11,013 21,874 46,011 53,446 Soybean Oil 16,097 25,531 40,217 41,758 Rapeseed Oil 8,160 14,470 23,966 24,444 Sunflower Oil 7,869 9,700 12,551 14,831 Others 37,752 43,130 49,813 51,776
  • World Oils & Fats Consumption 1990 2000 2010 2012 Palm Oil 11.08 21.75 45.57 51.74 Soybean Oil 16.13 25.17 39.13 41.68 Rapeseed Oil 8.2 14.27 23.62 24.13 Sunflower Oil 7.89 9.47 12.8 14.52 Others 37.61 43.09 50.59 51.54 Total 80.91 113.75 171.71 183.1
  • Oils & Fats Exports 1990 – 2000 1990 Others 34% 2000 Others 26% Palm Oil 36% Palm Oil 42% Sunflower Oil 8% Sunflower Oil 9% Rapeseed Oil 7% Soybean Oil 14% Rapeseed Oil 5% Soybean Oil 19%
  • Oils & Fats Exports 2010 - 2012 2010 2012 Sunflower Oil 10% Others 18% Sunflower Oil 7% Rapeseed Oil 5% Soybean Oil 15% Palm Oil 55% Rapeseed Oil 6% Soybean Oil 13% Others 15% Palm Oil 56%
  • World Oils & Fats Consumption World average per capita consumption of all oils and fats has grown progressively each year from a level of 18.9 kg in 2001 to 25.9 kg in 2012. The highest increases in consumption will be in low to middle income countries, where increasing per capita income can combine with relatively high rates of population growth. These high growth countries will tend to be in the developing world where palm oil has traditionally been strong.
  • Consumption – Palm Oil VS Other Oils 1990 2000 Palm Oil 14% Soybean Oil 20% Others 46% Sunflower Oil 10% Rapeseed Oil 10% Others 38% Palm Oil 19% Soybean Oil 22% Sunflower Oil 8% Rapeseed Oil 13%
  • CONSUMPTION – PALM OIL VS Consumption – Palm Oil VS Other Oils OTHER OILS 2010 Others 29% Sunflower Oil 7% Rapeseed Oil 14% 2012 Palm Oil 27% Soybean Oil 23% Others 28% Sunflower Oil 8% Rapeseed Oil 13% Palm Oil 28% Soybean Oil 23%
  • World’s growing dependence on palm oil will boost demand further in the future X1,000 MT 45000 40000 35000 30000 25000 20000 15000 10000 5000 0 Palm Oil Soy, Rape, Sun Oils Source: Oil World •Growth in population •Against a backdrop of lack of arable land and reduced supply from competing soft oils, palm oil reliability in supply gives it the added advantage • Increased application in the production of food and non food (oleo chemicals/bio diesel), especially in countries such China, India, Middle East, EU , America
  • Palm Oil in The Global Oils & Fats Market  Palm oil is the largest produced vegetable oil in the world  In 2004 palm oil pushed soybean oil into second place as the most produced oils & fats in the world  Palm is generally the most competitive commodity vegetable oil and also the less expensive oil to produce and to refine.
  • Palm Oil – Production And Consumption  Production of palm oil in 2012 was almost 53.4 million MT and 90% of palm oil comes mainly from Malaysia and Indonesia  Other producers are Thailand, Nigeria and Columbia  Consumption is mainly from China 5.9 million MT, India 5.5 million MT, EU-2.75 million MT, Pakistan 2.1 million MT, and Thailand 1.3 million MT
  • Palm Oil Uses in The Global Oils & Fats Market  It is a versatile oil used not only in food applications but also non food such as detergents, pharmaceuticals and biofuels.  Palm oil is widely used in the food industry, for example, palm olein used as a frying oil and palm stearin as hardstock in the production of spreads and cooking fats.  A mid-fraction produced during fractionation is used as a cocoa butter equivalent (CBE).
  • Palm Oil in The Egyptian Oils and Fats Market Egypt is a potential market for palm oil due to:  Well structured industry  Trade agreements  Fast growing food industries  Growing population  Insufficient oils and fats production  Encouraging import tariff structure  Competitive Utilities Tariff  Unique geographic location
  • Egypt-Oils & Fats Consumption (‘000 MT) Product 2008 2009 2010 2011 2012 Soybean oil 563.9 442.5 462.7 667.1 329.6 37.3 25.5 22 27.8 29.1 Sunfloweroil 195.6 407.6 461.6 399 747.8 Rapeseed oil 4.8 0.1 0 0 0 Corn oil 23.7 21 14.7 33.4 45.8 Olive oil 0.9 1.2 5 7.5 6.6 Palm oil 496 586.5 594.8 525 578.4 Palmkern oil 13.8 11.3 14.6 29.4 27.7 Coconut oil 4.3 6.2 5.3 14.2 5.5 Butter,as fat 123.5 134 133 135.3 141 0 0 0 0 0 Linseed oil 10.6 7.7 5.9 7.4 8.3 Castor oil 0.2 0.2 0.2 0.7 0.7 Tallow&Grease 0.1 0.2 0.1 0.1 0.1 1474.4 1644 1719.9 1846.8 1920.5 Cotton oil Lard Total Source: Oil World
  • 1000 MT Egypt-Palm Oil Consumption 2000 1800 1600 1400 1200 1000 800 600 400 200 0 Total Oil & Fats Palm Oil Source: Oil World 2008 1474 496 2009 1644 586 2010 1720 595 2011 1847 525 2012 1921 578
  • Palm Oil Applications in Egypt  Palm Oil become major component in Egypt. It’s uses spans from food to non-food applications.  Palm oil uses are extremely versatile as we can see it in big range of products in the retail market today. Other 12% Frying oil 44% Retail sale 3% Food productio n 5% Margarin e, vegeta ble ghee, and shortenin g 36% Source: Gain Report
  • Conclusion Palm oil continues to be an attractive long term commodity for producers and consumers. Manufacturers get strategic solutions from palm oil; food security, trans free products and competitive prices Increasing global demand for palm oil will continue in the food applications. Today 1 in 10 food products contains palm oil as one of its ingredients.
  • Conclusion  Palm oil will be the primary oil source to supplement the increasing needs of oils and fats’ requirements globally  Malaysian palm oil is produced using sustainable and good agricultural practices.  Malaysia will continue to be the most reliable supplier of palm oil in the global markets and supported by its technical and quality benchmarks