1. INTRODUCTION
This paper will provide an overview of
how the issue of environmental
degradation and the depleting of natural
resources and how oil palm can
contribute in managing the solution. It will
also look at how development over the
years has evolved especially in the oils
and fats sector. Developed by
Massachusetts Institute of Technology
(MIT) researchers using data from 1900
to 1970, this model shows the limits of
growth model with insights into the
management of these issues. In a
nutshell, the limit of growth model
professes that to maximize global output,
the world needs to be efficient in using
natural resources and minimise
environment destruction in the production
process.
The Global Growth model
A computer generated model was
developed by researchers at the
Massachusetts Institute of Technology
(MIT) forty years ago to predict how
global production of food and non-food
products, resource usage, waste
production and population growth
changes as the world progresses from
1900 to 2100. (Refer to Chart 1). The
results obtained are consistent with the
views of many economists which state
that volume of goods and services which
the world can produce is limited due to
scarcity of resources, technological
constraints and the extent which the
earth biosphere can provide a clean
environment to support life.
The model has been proven to be
accurate over the years of global
progress. The earth environment has
degraded and resources are depleting.
Statistics from the Planetforlife and
National Oceanic and Atmospheric
Administration (NOAA) of the United
States shows that global oils and gas
production will reach its peak in 2020 and
the CO² concentration per part per million
has risen from 384 to 392 from 2008 to
2013. (Refer to Chart 2 and 3). The green
house effect of rising CO² concentration
led global temperature to increase by
0.13 ˚F during the period.
The rehabilitative efforts of continuously
cleaning the environment and conserving
natural resources falls on government
and private initiatives through legislations
and monetary incentives. While private
entities are obligated to obey established
legislation, it is expensive for them to
address the environment issues
individually. Among the monetary
incentives currently available include the:
a) UN-REDD Programme – A program
with a collaborative initiative by the
United Nations (UN) on Reducing
Emissions from Deforestation and forest
Degradation in developing countries,
which was launched in 2008 and built on
the convening role of FAO and UNEP
(UN-REDD, 2009).
MPOC FORTUNE
MALAYSIAN PALM OIL COUNCIL KKDN PP 14669/05/2013 (032704) VOL: 4 2014
®
DIRECTOR
Faudzy Asrafudeen Sayed Mohamed
faudzy@mpoc.org.my
MANAGERS
Muhammad Kharibi Zainal Ariffin
kharibi@mpoc.org.my
Mohd Izham Hassan
izham@mpoc.org.my
MARKET ANALYSTS
Asia Pacific Lim Teck Chaii
(China) lim@mpoc.org.my
Asia Pacific Mohd Hafezh Bin Abdul Rahman
(Excl. China) mhafezh@mpoc.org.my
South Asia Fatimah Zaharah Md Nan
fatimah@mpoc.org.my
Middle-East Mohamad Suhaili Hambali
msuhaili@mpoc.org.my
Africa Nor Iskahar Nordin
iskahar@mpoc.org.my
Europe Azriyah Azian
azriyah@mpoc.org.my
Americas Mohd Izham Hassan
izham@mpoc.org.my
MARKETING & MARKET
DEVELOPMENT DIVISION
For more information, please contact
Tel : 603 - 7806 4097 Fax: 603 - 7806 2272
Continued on page 6
Global Food Security - Leveraging on Palm Oil
for Higher Limit of Oils & Fats Output
Chart 1: The Limits of Growth Model
1900 1920 1940 1960 1980 2000 2020 2040 2060 2080 2100
Pollution Ind. Output Population Food Resources
Source : Meadows D. H. et. al. (1974)
50
45
40
35
30
25
20
15
10
5
0
1930 1940 1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050
Chart 2: Oil & Gas Production Profiles
Gboe
Regular
Oil
Heavy
etc
Deepwater Polar NGL Gas Non-Con
Gas
Source: Planetforlife

3. MPOC FORTUNE • 3
MARKETInsightsIns g
About Us
1. Changzhou City
Located in the center of Yangtze River
Delta, the most prosperous and dynamic
region in China, Changzhou is a
fast-growing industrial city, situated in the
middle between Shanghai and Nanjing.
As one of the central cities in Grand
Shanghai Economic Circle, Changzhou
is an important base of manufacturing
and logistics.
- An ancient city with a history of more
than 3,200 years
- 4,385 km² with 4.69 million registered
population
- Top 4 of Livable Cities in China in 2013
- Gold Award of International Garden City
in 2012
- No.9 of the Best Commercial Cities in
China by Forbes
2. CZBJ Profile
Jiangsu Changzhou Binjiang Economic
Development Zone (CZBJ), formerly
called Jiangsu Xinbei Industrial Park, was
established in April 2006 with the
approval of Jiangsu Provincial
Government and verification of National
Development and Reform Commission.
Covering an industrial area of 34.5 km²,
CZBJ achieved great economic
performance in 2013:
CZBJ has long become a hotspot for
investors from both home and abroad. In
recent years, many World Fortune 500
and leading industrial enterprises have
been set up in our development zone, i.e.
Ashland, Novelis, Micarta from the USA;
Lanxess, Linde, Wurth from Germany;
AkzoNobel from Netherlands; DIC from
Japan; Saint-Gobain from France and
etc. Both central state-owned enterprises
and producer services develop fast, i.e.
China Resources, State Grid, Dongfeng
Continued on page 8
Changzhou
Binjiang
Economic
Development
Zone (CZBJ) –
Gateway to
Palm Bioenergy
Investment
in China

4. North Port, Port Klang
- Fima Bulking Services Berhad
- Fimachem Sdn Bhd
- Fima Liquid Bulking Sdn Bhd
- Fima Freight Forwarders Sdn Bhd
Butterworth
- Fima Palmbulk Services Sdn Bhd
Jalan Parang, 2nd Extension, North Port, 42000 Port Klang, Selangor, MALAYSIA
Tel: +603 - 3176 7211 Fax: +603 - 3176 5641 Email: enquiry@fimabulking.com
http://www.fimabulking.com
Located in a free commercial
zone offer excellent
opportunities for
• Import and export
• Transhipment
• MDEX tender (approved
delivery point)
• Regional collection /
distribution hub
Facilities available :
• Carbonsteel
• Coated & stainless tanks come
with heating facilities &
nitrogen blanketing.
Malaysia’s Largest Independent
Common-user Multi-purpose Liquid
Bulk Terminal Operator

5. MPOC FORTUNE • 5
Continued on page 7
Much has been said and written about
India’s continuing reliance on imported
vegetable oils to meet the increasing
demand for edible consumption.
Domestic production continues to
stagnate and demand continues to rise
on the back of the multiplier effect of
rising population and economic wellbeing
of the population. Not much thought has
been given to the potential for increased
imports emanating from industrial growth,
particularly in the oleo chemicals industry.
Increasing demand for biodegradable
and sustainable products, coupled with
recent changes in regulations, are
increasing the importance of
oleochemicals in various segments of the
chemicals industry, like lubricants and
biosurfactants for eg., all of this offer
significant opportunities for companies in
the long run. Companies that explore
organic and/or inorganic growth options
in this market space could be poised for
major growth.
Traditionally, oleochemicals have been
used for applications in surfactants,
personal care, soaps, detergents and
food additives. However, various new
applications are emerging where they
can replace petroleum-based products,
creating exciting growth opportunities.
Oleo-chemicals is a fast growing sector
in India, with major demand for oleo
products coming from the below
segments.
SOAPS
Personal Care products are likely to
experience a great thrust in
consumption, where Indian consumption
lags far behind world standards. In so far
as soaps are concerned, they have a
99% market penetration but the per
capita consumption is significantly lower
than the global average. Compared to a
per capita consumption of 6500 gms per
annum in USA and 4000 gms in China,
Indian soap consumption lags way
behind at only about 730 gms per capita
per annum. This, by itself, points to the
possibility of a much larger palm oil
requirement from the soap segment
alone. Although bar soaps are the largest
component, there is tremendous
potential for growth in the hand wash
segment as well.
Soap consumption has experienced a
CAGR of about 4% in 2008-13. It is likely
to grow at a CAGR of 3% to 5% between
2013 to 2020. The main thrust of the
FMCG sector is to target rural areas
which seem to show the greatest
potential as more than 50% of the
population lives in rural areas.
The greatest potential is for liquid soaps
where consumption levels are extremely
low. This segment is expected to achieve
a CAGR rate of 16% in the 2013-20
period.
Personal care – Bar Soaps
Bar Soaps are the largest FMCG product
segment and is expected to see a growth
of 6% in volume over FY13-20
DETERGENTS
Laundry detergents are the biggest
segment accounting for about 90% of the
total detergent market. These detergents
are available as bars, powders and
liquids. Powders comprise majority of the
laundry market in India while liquid
detergents are still in a nascent stage of
market development.
Dishwashing detergents are available as
bars, powders and liquids; bars and
powders account for about 85% of the
total market by value but this is expected
to decrease to 75% by 2020. Overall
dishwashing detergent penetration in
India is expected to grow from about 30%
of households to about 40% by 2020.
Liquid detergents constitute about 5% of
the volume and 15% of the value in
dishwashing detergents and are
expected to increase to 11% in volume
and 30% value by 2020. The first liquid
laundry detergent product was launched
in India by Hindustan Lever in May 2013.
Liquid laundry detergents are expected
to grow to about 5% of the volume by
2020.
Consumers from rural areas and smaller
towns are increasingly shifting towards
use of detergent cleaning products owing
to growing concerns for hygiene.
Extensive marketing by FMCG
companies in these newer markets has
provided impetus to growth in per capita
consumption
Premium detergent products such as
machine wash and post-wash softeners
still have low penetration in India even in
urban areas but are expected to ramp up
over the next few years. Another
emerging trend in the detergents industry
is the focus on using less water in low
temperature washes and producing
lower waste during production and
usage.
MARKETInsightsIns g
1400
1200
1000
800
600
400
200
0
FY08 FY09 FY10 FY11 FY12 FY13 FY20
688 717 764 816 855 900
1,241CAGR 5%
CAGR 6%
Country Grams Per Year (FY13)
India ~730
China 4,000
USA 6,500
Per capita consumption – Bar Soaps
Source: Indiastat, KPMG Analysis
India's per capita consumptionis
projected to increase to ~920
gramsby FY20
Bar Soap Volume
Good Potential for
Palm Oleo Chemicals in India
Source: Euromonitor, analyst reports,
KPMG analysis

6. b) Clean Development Mechanism
(CDM) – A mechanism developed as
defined in Article 12 of the Protocol, which
allows countries with emission-reduction
commitment to implement emission-
reduction projects in developing countries
to earn saleable certified emission
reduction (CER) credits to meet the Kyoto
targets (UNFCC, 2014).
c) EU’s Renewable Energy Directive
(RED) – A directive which requires that
20% of the energy consumed within the
European Union is from renewable
sources by 2020 with specified targets for
use of renewable fuels and reduction of
greenhouse gas (GHG) emission across
all energy sector (Glass, 2013).
d) USA Renewable Fuel Standard
(RFS) – A standard established under the
Energy Policy Act (EPAct, 2005) to
develop and implement regulations to
ensure transportation fuel in United
States (US) contains a minimum volume
of renewable fuel, which will increase
each year, escalating to 36 billion by year
2022 (EPA, 2013).
In the oils and fats trade, consumers
especially those in developed countries
are demanding for sustainably produced
and environmental friendly products. This
new purchasing behaviour is created by
NGOs who often create issues to further
their cause and make their claim without
the backing of justifiable facts and figures
(Yusof, 2013). These NGO’s are blaming
the palm oil industry for environmental
destruction and they blow issues out of
proportion just to entice financial support.
As a result, the consumers are now
demanding and governments especially
in Europe has developed stringent
production guidelines which is applied to
producers through certification schemes.
The certification schemes ensure products
comply with the requirement imposed in
various concerns such as environment,
social and legislation to satisfy consumer
needs. Certification ensures products are
produced in compliance with the
consumer requirement including
Sustainability, which has become a major
concern. Amongst the notable
sustainability certification schemes are the
Roundtable on Sustainable Palm Oil
(RSPO) Certification Scheme, Indonesia
Standard for Sustainable Palm Oil (ISPO)
and EU’s International Sustainability &
Carbon Certification (ISCC). As for
Malaysia, there are plans to introduce the
Malaysian Standard for Sustainable Palm
Oil (MSPO) certification in the near future.
Financial institutions are also taking a cue
from this development amidst the new
consumer demands to strengthen their
brand value. For example, HSBC has
recently announced that they will not
finance oil palm companies whose
business activities result in environmental
destruction. (HSBC, March 2014)
Although the limits of growth model
together with some economist predict that
global output volume will, upon reaching
its peak will start to decline, it is yet to be
proven in the global food production.
Based on FAO statistical trend of food
production, it shows that yearly growth of
food production is 3.4% which exceeds
population growth of 1.6%. A similar trend
was observed for global oils and fats
production trend. (Refer to table 1 and 2).
One possible reason is that the
production level has not hit the maximum
limit.
However, there is still a risk of reduction in
global food production as arable land per
capita has declined from 1961 to 2012.
(Refer to table 3). Based on the limits of
growth model, environmental degradation
and global depletion of natural resources
are other factors which could contribute to
6 • MPOC FORTUNE
394
392
390
388
386
384
382
2008 2009 2010 2011 2012 2013
Chart 3: Recent Global Monthly Mean CO²
PartsPerMillion
Source: NOAA, 2014
200
180
160
140
120
100
80
60
40
20
0
8
7
6
5
4
3
2
1
0
1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013
Table 2: Population Vis-a-vis Oils & Fats Production growth
Average population growth: 1.6%
Mn MT Billion
Average O&F production growth: 2.4%
’MnMT
Billionpeople
Source: Oil World Annual, Jan - Mar 2014
Continued from page 1
MARKETInsightsIns g
Global Food Security
- Leveraging on Palm
Oil for Higher Limit of
Oils & Fats Output
Continued on page 9
9
8
7
6
5
4
3
2
1
0
1961 1965 1969 1973 1977 1981 1985 1989 1993 1997 2001 2005 2009
Table 1: Population Vis-a-vis Global Food Production
Average population growth: 1.6%
Population (Billion) Food Production (Billion MT)
Average food production growth: 2.4% Source: FAO
1961
1963
1965
1967
1969
1971
1973
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
2011
Table 3: Global arable land per capita
Hectares per capita
Source: FAO
0.14
0.12
0.10
0.08
0.06
0.04
0.02
0.00
Hectarespercapita

7. MPOC FORTUNE • 7
4,000
5,000
4,500
3,500
3,000
2,500
2,000
1,000
500
1,500
0
Detergents Volume
Country Kg Per Year (FY10)
India 2.5
China 4
USA 10
Per capita consumption – Laundry detergents
Laundry Dishwashing
Source: Analyst reports,
KPMG analysis
India’s per capita consumption
is projected to increase to 3.4kg
per annum by FY20
FY08 FY09 FY10 FY11 FY12 FY13 FY20
CAGR 7%
CAGR 9%
2,103
228
2,215
251
2,409
274
2,640
294
2,790
318
3,006
345
4,651
545
250
200
150
100
50
0
36 44 48 55
66
79
222
CAGR 16%
CAGR 17%
Skin care volume
FY08 FY09 FY10 FY11 FY12 FY13 FY20
Source: Feedback Industry Report Skin
Care 2013; Indiastat, KPMG analysis
Country USD Per Year Country USD Per Year
India 0.6
China 6.6
USA 32
Germany 55.4
Per capita consumption – Skin care
Source: Unilever Investor Seminar 2010; Note: India (2012), Others (2010)
Per capita consumption of laundry
detergents in India is estimated at 2.5 kg
per annum in 2013 and is projected to
increase to 3.4 kg per annum in 2020
Detergents - Laundry and dishwashing
Detergents are likely to have a modest
growth in volume with laundry detergents
continuing to remain the largest category
SKIN CARE
Key products in the Indian skin care
market include fairness creams (45%)
and moisturisers (22%). The remaining
33% include specialized products such
as toners and astringents, antiseptic
creams, premium skin care creams,
etc…
India’s per capita spend on skin care is
estimated to be only 1/10th of China’s.
This indicates a large potential for future
growth. Per capita consumption of skin
care products in India is expected to
increase from about 64 gms in 2013 to
approx. 164 gms by 2020.
Personal Care – Skin Care &
cosmetics
Volume growth in the skin care segment
is expected to be driven by premium &
men’s grooming products
COSMETICS
The industry consists of lip paint, nail
paint, eye makeup and facial make up.
Lip and nail make-up are estimated to
account for about 80% of the market.
Cosmetics industry in India has grown at
about 25% per annum over 2008-13 and
is expected to continue to sustain the
growth momentum going forward,
growing at about 22% over 2013-20.
Per capita spending on cosmetics in
India remains significantly lower than
other developed countries and indicates
significant growth potential. Higher
discretionary spending, strong media
exposure leading to increased fashion
consciousness, entry of several
international cosmetic manufacturers,
demand from men’s grooming segment
are key drivers leading industry growth.
Personal care – Skin Care &
Cosmetics
Cosmetics is still under-penetrated in
India but is expected to continue its high
growth momentum
OTHER SECTORS
Other major sectors of oleo chemicals
users include pharmaceuticals, tobacco
processing, rubber processing, paints,
plastics, etc. Palm based products
account for a significant portion of the
feedstock for the oleo chemicals industry,
with soaps accounting for the major
chunk.
Continued from page 5
MARKETInsightsIns g
Good Potential for Palm Oleo Chemicals in India
Continued on page 11

8. Motor, China National Salt Corporation,
Guodian Power (Changzhou),
Longcheng Steel Market, Turbo-logistics,
ABLE logistics and etc.
At present, three pillar industrial sectors
have been formed:
Advantages for Biofuel/ Biomass
Industry
With the only professional chemical park
in Changzhou, CZBJ focuses on
developing new materials and new
energy. In 2013, gross industrial output
realized by new materials and new
energy enterprises reached 60.5 billion
CNY, accounting for about 65% of that of
large-scale enterprises in CZBJ.
To promote biomass and biofuel industry,
CZBJ demonstrates advantages in four
aspects:
1. Sufficient Land Capacity
CZBJ has reserved a land of about 790
hectares with port and logistic resources
for quality projects. Moreover, the land
has been approved by provincial and
municipal government to develop
chemical, chemical new material and
new energy (biomass energy) industry.
2. Convenient Traffic Network
Possessing the entire Yangtze River
waterfront resources in Changzhou,
CZBJ enjoys “4D” transportation network:
Changzhou port is a first class ocean
going port approved by the State Council
and one of the 63 ports directly
connected to Taiwan. Changzhou Port is
planned to build 15 berths of 100,000
DWT and 52 berths of 1000DWT. By
2015, the handling capacity will be 6MT,
and reach 100 MT in 2020. Customs
supervision station and bonded
warehouses are available in the park,
providing 24-hour onsite service for
enterprises.
Changzhou Airport is a 4E level airport,
providing 20 domestic airlines to major
cities in China. Flights to some Asian
cities including HK will be open within
2014.
Continued on page 10
Changzhou Binjiang Economic
Development Zone (CZBJ) – Gateway to
Palm Bioenergy Investment in China
Continued from page 3
MARKETInsightsIns g
8 • MPOC FORTUNE

9. Table 6: Major emitters of GHG of palm biodiesel
Emission sources Amount (kg CO²/
tonnes biodiesel)
Production of fertilizers used 185 (11.5%)
Nitrous oxide emitted 130 (8.1%)
Use of pesticides 34 (2.1%)
Transportation & machinery use 89 (5.6%)
Milling & refining of palm oil 19 (1.2%)
EFB 87 (5.4%)
Effluent ponds 824 (51.5%)
Transportation to mills, refineries 36 (2.3%)
Biodiesel refining 197 (12.3%)
Total 1,601 (100%)
Production & use of fossil fuel 4,228
Palm biodiesel savings 2,627
GHG emission saving relative to fossil diesel 65%
Source: van Zutphen ( 2007)
MPOC FORTUNE • 9
the risk of down trend in global food
production.
How palm oil fits into the model
With the inclusion of oil palm into the
equation it is quite definite that the
maximum global output limit will be higher
than the figure predicted by the
researchers from the Massachusetts
Institute of Technology (MIT). The model
did not factor in the contribution of the oil
palm sector as their model was built for
the period from 1900 to 1970 before the
global palm oil industry was developed by
Malaysia and Indonesia in the 1970s.
(Yusof, 2007)
As a crop, oil palm has helped to save the
amount of land utilised to produce edible
oils to feed the world. Oil palm is a high
yielding crop producing 11 times more oil
compared to soybean, 10 times more
compare sunflower oil and 7 times more
than rapeseed (Khosla & Sundram, 2010).
In 2013, global palm oil production was at
56.2 million MT and accounted for almost
30% of global oils and fats production of
190 million MT (Oil World, 2014).
Oil palm crop also has a high carbon
sequestration. In Malaysia’s case, oil
palm could cover the carbon emission of
land use change by the rice sector and
emission from other minor system of the
economy (Ministry of Natural Resources
& Environment Malaysia, 2011). It is quite
close to the CO² removal of forest. In
2007, the amount of CO² removed by the
oil palm sector is high at 68% of the
amount removed by the forest. Life Cycle
analysis done by van Zutphen shows that
CO² emission from the production of 1
MT of palm bio-diesel is lower than
soyabean and canola based biodiesel.
The emission is also lower than the
production of 1 MT of diesel. (Refer to
table 4 & 5 for the detail).
Unfair trade practices on palm
In spite of the superior qualities and the
versatility of palm oil in safeguarding the
world’s food security and environment, it
is not included in the EU-RED and
USA-RFS programmes. Such decisions
might have been made due to specific
countries interest to protect local
agricultural industry and policy by
deliberately ignoring palm oil’s superior
contribution. The testing method use to
establish the GHG savings emission in
EU and USA may not be inclusive or
representative of palm oil’s GHG savings.
Based on Van Zutphen (2008) study, the
oil palm industry Green House Gas
saving relative to fossil diesel is 65%.
This savings exceeds the threshold value
of EU-RED of 35%.
The USA-RFS differs from EU-RED in its
computation of GHG emission as it
include emission from palm kernel
processing but does not include emission
from land use change resulting in a
threshold value of 20%. As for life cycle
analysis on palm based biodiesel
production conducted by MPOC, it shows
a 101% savings over fossil fuels.
Therefore, the two studies conducted by
van Zutphen and MPOC show that palm
oil biodiesel feedstock should qualify for
the benefits of US-RFS and EU-RED
programme.
Conclusion
Oil palm is a perennial crop which
supports the basis for the development of
the limits of growth model. The model
promotes efficient use of resource while
minimizing environmental destruction
during production. In line with the basis of
the model, oil palm cultivation enables
efficient land usage with high productivity
of agricultural crop on limited land while
promoting greener environment. Every
Continued from page 6
MARKETInsightsIns g
Global Food Security
- Leveraging on Palm
Oil for Higher Limit of
Oils & Fats Output
Continued on page 12
20072000
167
Forest
82
Palm
147
40.5
35.6
147*
Forest
100*
Palm
Plantation
217
49
26.9
Total CO²
Emission 223.1
Total CO²
removal by
LULUCF 249.8
Total CO²
removal by
LULUCF 247
Total CO²
Emission 292.9
Emissions by others
LULUCF
+
Rice Sector
350
300
250
200
150
100
50
0
Source: Ministry of Natural Resources & Environment Malaysia
Table 4 : Malaysian Greenhouse Gas Emission and Removal (MT)
Land Use, Land Use Change and Forestry (LULUCF)
is made of Forestry and (Oil Palm) Plantation sector
Table 5 : Palm oil biofuel is superior to
other biofuels to arrest climate change
Source: van Zutphen ( 2008)
4500
4000
3500
3000
2500
2000
1500
1000
500
0
kgCO²/tonne
Palm Oil Soya Canola Diesel
byns

10. 10 • MPOC FORTUNE
Continued from page 8
MARKETInsightsIns g
3. Broad Market Prospect
Usually palm oil is used to produce
biofuel, food and daily chemical products.
Due to the superior location, Changzhou
is surrounded by many enterprises of
these three kinds.
4. Sound Public Facilities
Power Supply
Two 220kV and two 110kV power
substations, with a total capacitance of
540,000KVA. Dual-circuit input line of 10kV,
20kV, 35kV and 110kVcan be provided.
Water Supply
Yangtze River provides abundant water
resource.
One tap water plant: 1,000,000t/d, and
one industrial water plant: 80,000t/d.
The demineralized water can be
supplied.
Steam Supply
Three thermal power plants with a
capacity of 1200t/h. High pressure:
4.5MPa, low pressure 0.4~1.0Mpa.
Natural Gas
The “West-East” and “Sichuan-East”
National Gas Transmission Projects have
distribution stations in the zone. The
pipelines have been laid along the main
roads to ensure civil and industrial
utilization.
Sewage Treatment
Two sewage treatment plants with a
capacity of 330,000t/d, (another
100,000t/d-plant is under construction),
including 30,000 t/d chemical wastewater
treatment capacity.
Residue Treatment
There are professional residue treatment
plants with an incineration capacity of
9,900t/a, another 30,000t/a incineration
unit is under planning, collection capacity
of 1,000t/a, and comprehensive
utilization capacity of 28,000 t/a.
Industrial Gases
Linde, a professional gases supplier from
Germany, offers gas service such as
nitrogen, oxygen, hydrogen and argon.
Pipe Rack
Raw materials, products, steam and
industrial gases can be delivered through
the public pipe rack, which is about 10
km.
Fire Fighting
CZBJ has been equipped with an
advanced firefighting station.
Tank Storage
The current capacity is 520,000 m3, of
which 149, 000 m3 are bonded. (Besides,
another 370,000 m3 tank farm is under
construction.) There are around
100,000m3 exclusive solid warehouses
(including 20,000 m3 for hazardous
chemicals).
Land-Level
Land will be leveled to the natural height
before delivered to investors, with
supporting infrastructures connected to
the boundary of the land. Desmond Ng,
MPOC Shanghai
(1) Biomass Industry:
(2) Daily Chemical Industry:
(3) Food Industry:
Changzhou Binjiang Economic
Development Zone (CZBJ) – Gateway
to Palm Bioenergy Investment in China
T

11. MPOC FORTUNE • 11
800
700
600
500
400
300
200
100
0
900
FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
CAGR 4%
598 627
655
682 708 732 755 776
Source: KPMG analysis
Palm - based feedstock demand for soap production
CAGR 9%
Palm - based feedstock demand from oleochemicals
for different end-user segments (Non-soap)
64
38
30
33
9
14
15
71
44
33
34
10
14
16
79
50
36
36
12
15
17
87
57
40
37
14
15
18
96
64
45
38
16
15
19
106
71
50
39
18
15
20
115
79
55
40
20
16
21
126
87
62
40
23
16
22350
300
250
200
150
100
50
0
400
FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
Personal care
Detergents
Plastics
Rubber
Pharma
Processed food
Tobacco
Paint
’000MT
Continued from page 9
Good Potential
for Palm Oleo
Chemicals in India
MARKETInsightsIns g
The below chart shows the potential
CAGR of 4% from 2013-2020 from the
soap segment:
Palm – based feedstock demand from
oleochemicals
Demand of palm-based feedstocks for
oleochemical applications expected to
increase at a CAGR of 5% over FY 13-20
Palm-based feedstock demand from
oleochemicals for different end-user
segments (Non-soap)
Similarly, the below chart shows the
potential for a CAGR of 9% from the
non-soap segments over the same
period:
Based on what was presented, we can
conclude that there is immense potential
for increased usage of palm based
products in the manufacture of oleo
chemicals especially in the non food
sector. Although there are several oleo
manufacturers in India, this sector is one
of the growth sectors and it definitely
offers opportunities for further
investments, including joint ventures.
The newly elected Indian government
promises to be more business friendly
and this bodes well for the development
of Malaysia – India joint business ties
and a new avenue for palm based
products to be marketed in India.
Bhavna, MPOC India.
30
25
20
15
10
5
0
FY08 FY09 FY10 FY11 FY12 FY13 FY20
Country USD Per Year (FY13)
India 0.4
China 1
Per capita consumption – Cosmetic
Source: Analyst reports,
KPMG analysisUSA 37
Cosmetics volume
2 1 1
3
1 1
3 2 1
4
2 1
5
2 1
6
3
1
24
15
6
CAGR 22%
CAGR 25%
Lip paint Face make-up Nail paint
Source: Euromonitor, Analyst Reports,
news articles, KPMG analysis

12. MPOC
Offices
Worldwide
Malaysian Palm Oil Council (MPOC)
2nd Floor Wisma Sawit
Lot 6, SS 6, Jalan Perbandaran
47301 Kelana Jaya, Selangor
Tel: 603-7806 4097
Fax: 603-7806 2272
www.mpoc.org.my
American Palm Oil Council
1010 Wisconsin Av, Suite 307
Washington DC 20007
Tel: +1 (202) 333 0661
Fax: +1 (202) 333 0331
www.americanpalmoil.com
E-mail: kassim@americanpalmoil.com
Contact: Mohd Salleh Kassim
MPOC Africa Regional Office
5 Nollsworth Crescent, Nollsworth Park
La Lucia Ridge Office Estate,
La Lucia 4051, KwaZulu-Natal, South Africa
Tel: +27 (31) 5666 171
Fax: +27 (31) 5666 170
E-mail: kazmi@mpoc.org.za
Postal Address:
P.O.Box 1591
M.E.C.C. 4301, South Africa
Contact: Kamal Azmi
MPOC Bangladesh
62-63 Motijheel Commercial Area,
7th Floor, Amin Court Building,
Dhaka, Bangladesh
Tel: +88 (02) 9571 216
Fax: +88 (02) 9551 836
E-mail: fakhrul@mpoc.org.bd
Contact: Fakhrul Alam
MPOC Shanghai
Shanghai Westgate Mall Co. Ltd.
Room 1610B, 1038 Nanjing Rd. (w)
Shanghai 200041, P. R. China
Tel: +86 (21) 6218 2085 / 6218 2513
Fax: +86 (21) 6218 1125
E-mail: teah@mpoc.org.cn
Contact: Teah Yau Kun
MPOC Pakistan
11 – 3rd Floor, Leeds Centre
Main Boulevard Gulberg, 111 Lahore, Pakistan
Tel: +92 (42) 3571 6600 / 3571 6601
Fax: +92 (42) 3571 6602
E-mail: faisal@mpoc.org.pk
Contact: Faisal Iqbal
MPOC India
S-4, New Mahavir Building, Cumballa Hill Road
Kemps Corner, Mumbai 400 036
Tel: +91 (22) 6655 0755 / 6655 0756
Fax: +91 (22) 6655 0757
E-mail: bhavna@mpoc.org.in
Contact: Bhavna Shah
MPOC Europe Regional Office
31 Avenue Emile Vendervelde
1200 Brussels Belgium
Tel: +32 (2) 7748 860
Fax: +32 (2) 7794 371
E-mail: kumar@mpoc.eu
Contact: Uthaya Kumar
MPOC Moscow
Moscow, 4th Dobrininskiy side-street,
8 BC 'Dobrinya', 1st floor, Office R00-126
Tel : +790 963 520 40
Email: udovenko@mpoc.org.my
Contact: Aleksey Udovenko
MPOC Cairo
3 Gamal E1-Din Afify Street, Nasir City
Zone No.6, 11371 Cairo, Egypt
Tel: +20 (2) 2273 8108
Fax +20 (2) 2273 8106
E-mail: zainuddin@mpocegypt.com
Contact: Zainuddin Hassan
MPOC Istanbul
Guzel Konutlar Sitesi
Dilek Apartment Daire 3
Balmumcu, Besiktas - Istanbul, Turkey
Tel: +90 (212) 2668234
Fax +90 (212) 2668236
E-mail: haznita@mpoc.org.my
Contact: Norhaznita HusinPublisher: Malaysian Palm Oil Council (MPOC)
2nd Floor Wisma Sawit, Lot 6, SS 6,
Jalan Perbandaran, 47301 Kelana Jaya, Selangor
Printed by: Aktiara Corporation Sdn Bhd
1 & 3, Jalan TPP 1/3, Taman Industri Puchong
Batu 12, 47160 Puchong, Selangor
characteristic and property of oil palm makes
it superior compared to other oil crops. On the
field, the Malaysian palm oil industry has
developed good agricultural practices which
include zero burning, zero waste and
integrated pest management which minimise
chemical controls. Oil palm plantations act as
effective carbon sequesters with cumulative
benefits of cultivation to rural population and
the economy. In Malaysia, the oil palm sector
provides employment to approximately
800,000 people while palm oil sector export
revenue registered RM61.36 billion in 2013.
Anthony K. Veerayan & Lim Teck Chaii, MPOC HQ
References
1. Food and Agricultural Organisation of the United
Nations, (FAO) http://faostat3.fao.org/faostat-
gateway/go/to/download/R/RL/E
2. Malaysian Palm Oil Council’s comments on
EPA’s NODA concerning renewable fuels
produced from palm oil under the RFS Scheme
(EPA-HQ-OAR-2011-0542)
3. Meadows Donella H., Meadows Dennis L.
Meadows, Randers Jorgen, Behrens III William
W, ( 1974), The limits to growth, Pan Books Ltd.
U.K.
4. Ministry of Natural Resources & Environment
Malaysia ( 2011). Malaysia Second National
National Communication to the UNFCCC, p.
1115
5. Oil World Annual (Jan – March 2014) ‘Statistics
for 17 Oils and Fats & Biodiesel.
6. Pramod Khosla and Kalyana Sundram, (2010) ‘A
Supplement on Palm Oil – Why? The Journal of
the American College of Nutrition, Vol.29, No.
3(S) pp.237s-239s.
7. van Zutphen, H (2007) The CO² and Energy
Balance of Malaysian Palm Oil, Zwolle,
Netherlands
8. van Zutphen H ( 2008) ‘Comparative LCA
analysis of different edible oils and fats’
International Palm Oil Sustainable Conf., Kota
Kinabalu, Sabah, p. 18
Websites.
1. Clean Development Mechanism - CDM (2014)
https://unfcc.int/kyoto_protocol/ mechanisms/
clean_development_mechanisms/items/2718.p
hp, Accessed on 1 may 2014
2. Glass D. (2013) ‘European Union Renewable
Energy Directive-Advanced Biotechnology for
Biofuels http://dglassassociates.wordpress.
com/2013/01/22/european-union0renewable-en
ergy-directive/, Accessed on 27 may 2014.
3. HSBC Statement on Forestry and Palm Oil
(March 2014) http://www.hsbc.com/~/media/
HSBC-com/citizenship/sustainability/pdf/hsbc-st
atement-on-forest, Accessed on 28 may 2014
4. Renewable Fuel Standards (RFS) – Fuel and
Fuel Additives (2013) http://www.epa.gov/
OTAQ/fuels/renewablefuels, Accessed on 1 may
2014
5. The Hubbert Curve for the whole world,
http://planetforlife.com/oilcrisis/oilpeak.html
Accessed in 28 may 2014
6. The United nations Collaborative Programme on
Reducing Emissions from Deforestation and
Forest degradation in Developing Countries
(2009) http://www.un-redd.org/ AboutUN-REDD
Programme/tabid/102613/Default.aspx,
Accessed on 1 may 2014.
7. Trends in Atmospheric carbon Dioxide (2014)
US Department of Commerce, National Oceanic
and Atmospheric Administration http://www.esrl.
noaa.gov/gmd/ccgg/trends/ Accessed on 28
may 2014.
8. Yusof Basiron, Unjustified & Illogical campaigns
against palm oil (2013) http://www.ceopalmoil.
com/2013/02/unjustified-illogical-campaigns-ag
ainst-palm-oil/, Accessed on 28 may 2014
C
O
M
PLETED
C
O
M
PLETED
Global Food Security
- Leveraging on Palm
Oil for Higher Limit of
Oils & Fats Output
MARKETInsightsIns g
Continued from page 9