MPC2015: Global Oils and Fats Scenario and Malaysian Palm Oil's Contribution

Copyright by Malaysian Palm Oil Council 2015

PRESENTATION OUTLINE
 THE GLOBAL OILS AND FATS SCENARIO
 CONTRIBUTION OF MALAYSIAN PALM OIL
 EGYPT OILS & FATS SCENARIO
 AFFORDABILITY & SUSTAINABILITY
 MARKET CHALLENGES & OPPORTUNITIES
BEYOND 2015
 CONCLUSIONS

Global Oils and Fats Production 1990-2015(F)
-
50,000
100,000
150,000
200,000
250,000
(‘000MT)
Oils & Fats Production Oils & Fats ConsumptionSource: Oil World & MPOB

GLOBAL OILS & FATS PRODUCTION & CONSUMPTION
Y-O-Y CHANGE 1991 – 2015F (‘000 MT)
-
2,000
4,000
6,000
8,000
10,000
12,000
(‘000MT)
Oils & Fats Production Oils & Fats ConsumptionSource : Oil World

Average Annual Growth in World Vegetable Oil
Production (1990 – 2015F)
Source: Oil World
0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00 1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015(F)
Palm Oil Production Soybean Oil Production
Sunflower Oil Production Rapeseed Oil Production
Average Annual Growth (1990 – 2015(F)
Palm Oil (7.03%)
Rapeseed Oil (5.2)
Soybean Oil (4.6%)
Sunflower Oil (4.4%)

Oils and Fats Production (1990 – 2015F)
1990 Production : 80.89 million MT
2015(F) Production : 204 million MTSource: Oil World
Rapeseed oil
10.09%
Soybean oil
19.90%
Palm oil
13.62%
Sunflower oil
9.73%
Others
46.67%
Palm Oil
31%
Soybean Oil
23%
Rapeseed Oil
13%
Sunflower Oil
8%
Other Oils
25%

 Growth in population and income and low per caput consumption level will stimulate demand
 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
 Food and industrial demand will see an increased application in the production of food and non food (oleo chemicals/bio diesel),
especially in countries such China, India, Japan, EU and America
1990 Exports : 23.27 million MT
2015(F) Exports :81 million MT
OILS AND FATS EXPORTS (1990 – 2015F)
Source: Oil World
Soybean oil
14.15%
Sunflower
oil
9.13%
Palm oil
36.22%
Rapeseed
oil
6.93%
Others
33.57%
Palm Oil,
58.08%
Soybean Oil,
13.44%
Rapeseed Oil,
5.06%
Sunflower Oil,
9.21%
Other Oils,
14.22%

OILS & FATS PRODUCTION VS CONSUMPTION
1990 – 2050 (F)
-
100,000
200,000
300,000
400,000
500,000
600,000
700,000
1990
1995
2000
2005
2010
2015
2020
2025
2030
2035
2040
2045
2050
(‘000MT) Oils & Fats Production
Oils & Fats Consumption
Linear (Oils & Fats Production)
Expon. (Oils & Fats Consumption)
Source : Oil World

OILS & FATS PRODUCTION
1990 2014
('000 MT) (%) ('000 MT) (%)
Palm oil 11,013 13.62 59,189 29.63
Soybean oil 16,096 19.90 45,072 22.56
Sunflower oil 7,869 9.73 16,312 8.17
Rapeseed oil 8,160 10.09 27,163 13.60
Subtotal 43,138 53.33 147,736 73.96
Cottonseed Oil 3,782 4.68 4,910 2.46
Groundnut Oil 3,897 4.82 3,930 1.97
Sesame Oil 612 0.76 872 0.44
Corn Oil 1,477 1.83 2,998 1.50
Olive Oil 1,855 2.29 2,940 1.47
Palmkernel Oil 1,450 1.79 6,521 3.26
Coconut Oil 3,387 4.19 3,071 1.54
Butterfat 6,499 8.03 7,742 3.88
Lard 5,509 6.81 8,425 4.22
Fish Oil 1,378 1.70 912 0.46
Linseed Oil 653 0.81 619 0.31
Castor Oil 437 0.54 650 0.33
Tallow /Grease 6,812 8.42 8,424 4.22
Subtotal 37,748 46.67 52,014 26.04
Total 80,886 100.00 199,750 100.00

World’s Growing Dependence on Palm Oil Will Boost Demand
Further in the Future (Consumption)
Source: Oil World
0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
90.00
100.00
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015(F)
Palm Oil - % of Oils & Fats Consumed Other Oils - % of Oils & Fats Consumed

Palm oil is by far the most important oil worldwide
It is expected that world PO imports to rise by 1 million MT and usage by 3 million MT in 2015
India has increased its palm oil imports and China is likely to raise imports of palm oil in 2015
0
5
10
15
20
25
30
35
40
45
50
2010 2011 2012 2013 2014 2015 (F)
Palm oil Soybean, Rapeseed & Sunflower Oil
EXPORTS OF 4 MAJOR OILS 2010 - 2015
Source : Oil World

Source : USDA
SHARE OF GLOBAL VEGETABLE OIL FOR FOOD USE
Palm oil share in food use
has grown from 32.5% in
2013 and will exceed 34%
by 2016 while soybean oil
share will drop from 37.5%
to 35%
These two oils now
account for nearly two
thirds of food oil
consumption
Significant declines in
rapeseed, sunflowerseed
and cottonseed production
are limiting supplies of
these oils and encouraging
a switch to palm oil due to
its competitive price

GLOBAL OILS AND FATS SCENARIO
The overall global production of oils and fats in 2014 was just
over 200 million MT while consumption was at 199.7 million MT
Production grew by almost 28 million MT or 16% since 2010
Oils and fats production in 2015 is forecast to reach almost 205
million MT.
Consumption is forecast to increase to 203 million MT, mainly
from the food sector
There will also be demand from biodiesel producers as the
current attractive price of vegetable oils will stimulate
consumption

Malaysian Palm Oil Contribution To Global Oils & Fats
In 1990, Malaysian palm
oil contributed to just
7.5% of global oils and
fats production
This has gradually
increased and reached a
high of 11.08% in 2008
This year Malaysian palm
oil is expected to
contribute 9.87% to
global oils and fats
production
7.53%
9.87%
0.00%
2.50%
5.00%
7.50%
10.00%
12.50%
15.00%
17.50%
20.00%
22.50%
25.00%
27.50%
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015(F)
Malaysian Palm Oil Production Soybean Oil
Rapeseed Oil Sunflower Oil

TOP IMPORTING COUNTRIES OF MALAYSIAN PALM OIL-
BY DESTINATION : JANUARY – OCTOBER 2015
No. Country
Jan – Oct 2015
(MT)
Jan – Oct 2014
(MT)
Change (Vol.)
(MT)
Change
(%)
Jan – Dec 2014
(MT)
1 India 2,961,357 2,602,818 358,539 13.78 3,229,965
2 China 2,125,135 2,241,283 (116,148) (5.18) 2,839,283
3 Netherlands 1,178,943 1,301,032 (122,089) (9.38) 1,598,221
4 Pakistan 602,206 701,311 (99,105) (14.13) 812,191
4 USA 588,988 663,847 (74,859) (11.28) 783,105
6 Vietnam 525,997 488,578 37,419 7.66 604,193
7 Philippines 515,471 413,923 101,548 24.53 493,742
8 Japan 446,848 428,683 18,165 4.24 513,483
9 South Korea 332,309 317,919 14,390 4.53 374,091
10 Singapore 330,485 406,426 (75,941) (18.69) 481,455
18 EGYPT 186,929 293,591 (106,662) (36.33) 349,172
Source : MPOB

0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
Soyabean Sunflower Rapeseed Palm Oil
Kernel Oil Seed Oil
HIGH LAND PRODUCTIVITY OF OIL PALM YIELD
PALM OIL VS OTHER OILSEEDS
Productivity of
oil palm is:
• 11x more than
soyabean
• 10x more than
sunflower
• 7x more than
rapeseed
* Includes palm kernel oil
Source: * FAO ** Oil World *** MPOB
Crop
t/ha
0.59
0.36
3.68
0.42

0
2,500
5,000
7,500
10,000
12,500
15,000
17,500
20,000
22,500
1975 1980 1985 1990 1995 2000 2005 2010 2015(F)
Planted Area ('000 Hectares) Production ('000 MT)
OVERVIEW OF MALAYSIAN PALM OIL INDUSTRY
In 1975, total area planted
with oil palm in Malaysia was
640,000 Ha which produced
1.26 million MT of palm oil
In 2015, planted area is 5.4
million Ha but production will
reach 20.3 million MT
Land area for oil palm
increased by only 8 times but
production increased by
almost 17 times

MALAYSIA & INDONESIA CPO PRODUCTION 1980 - 2014
0
5000
10000
15000
20000
25000
30000
35000
'000MT
Indonesia Malaysia
Source : Oilworld & MPOB

CPO PRICE AGAINST MONTHLY STOCKS IN MALAYSIA
Source : MPOB
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
Jan-10
Apr-10
Jul-10
Oct-10
Jan-11
Apr-11
Jul-11
Oct-11
Jan-12
Apr-12
Jul-12
Oct-12
Jan-13
Apr-13
Jul-13
Oct-13
Jan-14
Apr-14
Jul-14
Oct-14
Jan-15
Apr-15
Jul-15
Oct-15
(RM/MT)
(MT)
STOCK (MT) PRICE (RM)

Malaysian Palm Oil Exports
1975 -2015 (F)
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
1975 1980 1985 1990 1995 2000 2005 2010 2015(F)
Export ('000 MT)Source: MPOB

Palm Oil – Export Growth 2001- 2014
Export of Malaysian palm oil has increased by almost 70%
since 2001
The main product exported, RBD palm olein, comprises
almost 50% of palm products from Malaysia
In 2014, total export earnings was RM61.36 billion
PO contributed the highest export earnings with RM45.27
billion or 73.7% out of total RM61.36 billion, followed by
oleochemicals RM9.29 billion (15.1%), PKO RM3.41 billion
(5.5%) and finished products RM1.35 billion (2.2%).

Palm Oil in The Global Oils and Fats Market
Palm oil is being increasingly used for non-food purposes. In 2000
when production was 24.3 million MT, 3.5 million MT (15%) was used
for industrial purposes. In 2014 production rose to almost 60 million
MT and 16 million MT (25%) was used for industrial purposes.
When palm biodiesel becomes a widely traded commodity, the
proportion used for industrial purposes will rise even further
Without the large volume of palm oil from Malaysia, there would be a
major problem in meeting world demand for vegetable oil.

EGYPT OILS AND
FATS SCENARIO

• Domestic production is insufficient to meet Egypt’s demand from the rising population, therefore Egypt heavily
relied on import.
• 80% of consumption gap is filled with import of semi refined & crude oil.
Egypt Oils & Fats
Still Strong Reliance on Imports
0
10
20
30
40
50
60
70
80
90
0
500
1000
1500
2000
2500
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
(MillionPeople)
'000Tonnes
Population Consumption Production Imports
Source : Oil World

Egypt Oils and Fats Consumption On The Increase
Egypt’s consumption of oils and fats in 2015 is likely to exceed 2.1 million MT, which represents a
compound average 3.95% growth over the past 15 years. The growth in consumption can only be
satisfied through imports as per capita use is poised to reach 25 kg in 2016.
-
500.0
1,000.0
1,500.0
2,000.0
2,500.0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015(F)
Total O&F Production Total O&F Consumption Total O&F Import
Source : Oil World
Large deficit between production and consumption is likely to
continue thus Egypt has to depend on imports to fulfil requirements

Egypt – Types of Major Oils Consumed
Palm oil is the most
consumed oil in Egypt
and has increased by 60%
since 2000
The only exceptions were
in 2011 and 2012 when
consumption of soybean
oil and sunflower oil
exceeded palm oil due to
narrowing price discount
However, there has
always been an inverses
correlation of the
consumption between
soybean and sunflower
oils
0
100
200
300
400
500
600
700
800
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015(F)
(‘000MT)
Palm oil Sunflower oil Soybean oil Butter fat
Source : Oil World
Palm Oil
Soybean Oil
Sunflower Oil
Butter fat

Malaysian Palm Products Exported to Egypt
Malaysian Palm Products Jan-Dec 2014 ( Tonnes)
Palm Oil 349,172
Palm Kernel Oil 55,625
Oleochemicals 32,231
Finished Products 3,772
Total (Volume) 440,800
Total Sales Value RM1.2 Billion
Source : MPOB

Top 10 Malaysian Palm Products Exported to Egypt
4,848
4,877
5,675
6,863
19,948
27,869
28,118
35,085
80,331
196,228
- 50,000 100,000 150,000 200,000 250,000
RBD KERNEL STEARIN (PKO)
PALM FATTY ACID DISTILLATE (PO)
PURIFIED / REFINED / DISTILL GLYCERINE / GRD GLYCERINE (OC)
HRBD PALM KERNEL STEARIN (PKO)
SOAP NOODLES / STOCK / BLEND (OC)
RBD KERNEL OLEIN (PKO)
CRUDE PALM OLEIN (PO)
RBD PALM OIL (PO)
RBD PALM STEARIN (PO)
RBD PALM OLEIN (PO)
Volume Jan-Dec 2014 (MT)
Source : MPOB

Egypt – Palm Oil Scenario
('000 MT) Consumption Export Import MPO MPO %
2005 623.1 81.0 774.1 605.5 78.22%
2006 539.0 70.0 611.0 257.0 42.06%
2007 570.0 60.0 90.0 180.0 30.51%
2008 496.0 80.0 630.0 299.0 47.46%
2009 591.5 154.5 710.0 370.0 52.11%
2010 594.8 170.3 800.0 347.0 43.38%
2011 525.0 155.0 720.0 258.0 35.83%
2012 558.4 142.3 690.7 312.8 45.29%
2013 612.6 125.0 772.6 308.4 39.92%
2014 695.5 139.9 880.5 350.4 39.80%
Source : Oil World / MPOB

Palm Oil Applications In Egypt
During the 2009-2014 period, the sales of
oils and fats were growing at 12.3% CAGR,
where consumer expenditure on oils and
fats reached EGP 10.48 billion (US$1.37
billion) in 2014.
Palm oil is used, to a large extent, as
cooking oil, the manufacturing of ghee, in
baked productions and confectionery.
44% of the total palm oil imports are
utilized in industrial frying, hotel, restaurant
and catering while 36% are used in the
manufacturing of vegetable ghee and
shortening etc (MPOC Cairo).

Competitive Pricing
Pricing is a major factor in consumers’ selection of cooking oils
and fats.
As price is the key purchasing factor for lower income citizens,
palm oil has the competitive advantage over other oils and fats.
Consumer acceptance will slowly increase as they realize the
cheaper price offered by palm olein blended cooking oil.
Also, brands do not play a role in the purchasing.
Vegetable ghee will retain the biggest share of ghee sales as
animal ghee is expensive.
Egypt – Oils and Fats Scenario

Food Preference
In pace with urbanization, the busy and modern lifestyle has
affected the food habits and food preference.
The large youth population are accepting more westernized
snacks and they are switching over to fast food and processed
food.
This change of eating habits has boosted the growth of food
industries that used palm oil as one of the major ingredients.
Egypt – Oils and Fats Scenario

Egypt – Oils and Fats Balance
('000 T) 2010 2011 2012 2013 2014 2015F
Opening Stock 217 260 370 434 489 497
Production 414 473 479 432 460 465
Import 1,658 1,842 1,809 1,852 1,912 1,903
Export 307 356 319 257 301 299
Consumption 1,722 1,849 1,905 1,972 2,063 2,111
Ending Stock 260 370 434 489 497 455
Stock Usage
Ratio
12.81% 16.78% 19.51% 21.94% 21.02% 18.88%
Source : Oil World

96.80
673.80
770.60
-100.00
-50.00
0.00
50.00
100.00
150.00
200.00
250.00
300.00
350.00
0.00
200.00
400.00
600.00
800.00
1,000.00
1,200.00
1,400.00
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Diff(US$/MT)
Prices(US$/MT)
Diff Palm Oil Soybean Oil Source : Oil World
Average Difference
SBO vs CPO Prices (1980 – 2015, US$/MT)

PRICE ADVANTAGE OF PALM OIL
Price relationships among the
various oils are also impacting
purchasing decisions
Premiums for rapeseed, sunflower
and cottonseed oils have
increased in recent months
reflecting tighter supplies
As a consequence, price-sensitive
buyers are switching to palm oil as
a more affordable and viable
alternative oil
Palm oil remains the most
competitively priced oil and is
reflected though its discount to
soybean oil and other major oils

MAJOR OILSEED PLANTED AREAS AND PRODUCTION
Oil Palm Is The Most Efficient, Effective And Highest Yielding Among All Vegetable
Oils Produced
 Since 2004, land for palm oil cultivation grew by only 6.88 million hectares compared to soybean cultivation which increased by 24.67
million hectares while land for rapeseed oil cultivation increased by 10.72 million hectares
 In terms of production, palm oil increased by 28 million MT compared to soybean oil which increased by 14.38 million MT while
rapeseed oil increased by 8 million MT
0
10
20
30
40
50
60
70
80
90
100
110
120
SBO SFO RSO PO
Planted area (Mn. Ha) Production (Mn. MT)
2004
0
10
20
30
40
50
60
70
80
90
100
110
120
SBO SFO RSO PO
Planted area (Mn. Ha) Production (Mn. MT)
2014

THE IMPORTANCE OF PALM OIL AS A
SUSTAINABLE SOURCE
Palm oil is the most produced and consumed edible
oil in the global market
Palm oil is the most inherently sustainable of all
oilseed crops in the world
Planted on only 0.3% of the world’s agricultural lands
and yet producing 30% of global supply of edible oils,
palm oil has assumed market leadership in the world’s
edible oil market

Palm Oil and the Global Oils & Fats Requirement
• According to recent reports, global human population will grow to over 9 billion by 2050, and the Food and
Agriculture Organization of the United Nations(FAO) estimates the world will have to produce about 60 to
70 percent more food in the next 35 years, while the Organisation for Economic Co-operation and
Development (OECD) states that the world will need 20 percent more food by 2020.
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
2018
2020
2022
2024
2026
2028
2030
2032
2034
2036
2038
2040
2042
2044
2046
2048
2050
(‘000MT)
Oils & Fats Production Oils & Fats Consumption

POPULATION GROWTH DRIVES PREFERENCE FOR PALM OIL AS FOOD,
AVOIDING MORE LAND CONVERSION TO OTHER OIL SEED CROPS
Year
Population (billion)
2025
7.9
2040
8.5
2080
9.1
Projected Additional Palm oil to be supplied by Malaysia (m MT) 2.7 5.3 7.7
Estimated Additional land needed for palm oil cultivation in
Malaysia (m ha)
0.7 1.4 2.1
Additional land needed to cultivate Rapeseed to offset this oil
palm cultivation (m ha)
4.5 9.0 13.4
Additional land needed to cultivate Sunflower to offset oil palm
cultivation (m ha)
5.7 11.3 17.0
Additional land needed to cultivate Soybean to offset oil palm
cultivation (m ha)
7.2 14.4 21.6
• 7-11 times more land needed if other oil crops were to substitute Malaysian palm oil to meet future
demand.
• 21.6 m ha of land needed for soybean cultivation in 2080 is equivalent to 2/3 of land area of
Malaysia.

THE IMPORTANCE OF PALM OIL
Alleviating Poverty through Wealth Creation
Palm oil provides developing nations and the poor a path out of poverty.
Expanding efficient and sustainable palm oil Plantations provides people to
improve their standard of living
Sustainable Development
Sustainable development of palm oil plantations and growth of the palm oil
industry in Malaysia has been achieved through consultation and collaboration
with industry, growers, government and the wider community
Climate and the Environment
Palm Oil is a highly efficient, high yielding source of food and fuel. While palm
oil plantations are an efficient way of producing fossil fuel alternatives and
capturing carbon from the atmosphere.

MSPO
Malaysian Sustainable Palm Oil
Contains 4 Malaysian Standards (MS)
Produced following ISO Standards protocol involving stakeholder
consultation
Adoption is voluntary
Alternative to other palm oil sustainability systems e.g. RSPO, ISCC
Launched in 2015
Setting up of MPOCC to implement MSPO

Palm oil is a primary source of food
Palm oil is source of oils and fats for
food
Very small amount ( 1.4 %) used for
biofuel
Oils & fats is important part of human
diet
WHO recommends 30% of energy
requirements (calories) of human
beings to be obtained from oils & fats
Equivalent to 20-24 kg of oils & fats
per capita per year

Palm Oil – The Ultimate Sustainable Oil
Distribution of Agricultural Area Agric emission is
15% of global
emission.
Oil Palm emission
is 0.0195% of
global emission,
but Oil palm is
likely to be CO2
remover.
Fossil fuel
emission of 33
billion tonnes of
CO2 accounts for
50% of annual
global emission

PALM OIL AS THE LEADER IN AFFORDABILITY AND
SUSTAINABILITY
• The global oils and fats output in 2015 is forecast to increase by
more than 3 million MT
• Palm oil alone is expected to contribute 1.8 million MT or 37.5%
of this growth
• Palm oil is one of the most traded agriculture commodities in
the world.
• The price of palm oil compared to other major oils over the
years is proof that palm oil is indeed the leader in affordable oils
and fats

FAO Definition
Food security exists when all
people, at all times
Have physical and economic
access to sufficient, safe and
nutritious food
 To meet their dietary needs
and food preferences
Enabling them to lead active
and healthy life styles
FOOD SECURITY

WORLD POPULATION (OVERALL)
0
1 000 000
2 000 000
3 000 000
4 000 000
5 000 000
6 000 000
7 000 000
8 000 000
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
WORLD POPULATION ASIA
AFRICA EUROPE
LATIN AMERICA & CARIBEAN NORTH AMERICA
OCEANIA
Source : United Nation, Population Division, Department of Economics and Social Affairs

Top 20 Most Populous Countries
Source : United Nations, Department of Economic and Social Affairs, Population Division

A Need To Feed Growing Population
Source : UNDP Report 2015, Oil World

Nearly all of the population growth will occur in
developing countries. Sub-Saharan Africa's population
is expected to grow the fastest (up 108 %; 910 million
people), and East and South East Asia's the slowest (up
11 %; 228 million people).
Growth in World Population/Food Security
http://www.fao.org/infographics/pdf/FAO-infographic-SOFI-2012-en.pdf

World Map Showing The Developed And
Developing Countries

 Rising food prices - Makes food beyond the reach of poor people
 Poor supply and distribution network - Makes food scarce in some
locations
 War and pestilence – Causes total disruption in supply chain
 Climate change
 Water shortage
 Use of food for new non-food purposes
 Severe outbreaks of pests & diseases
 Growing affluence

NGOS / ENVIRONMENTAL PRESSURE
 These groups are sometimes government
sponsored or funded by entities that are threatened
by the presence of better, more viable vegetable oils
and fats products.
 They have become anti-growth agents to prevent
developing countries from expanding their
agricultural production via “no deforestation”
ideology.
 The real culprits with devastating deforestation
records are the countries where these green NGOs
are coming from, UK(11%), France(29%) , US(33%)
and Australia(19%) compared to Malaysia (56%
forest).
• Non Tariff Barriers, Policies
emerging, proposed or imposed
either by developed nations or
activist groups that issue
misrepresented statements under
the misguided concern for the
protection of the environment.
• Impose export controls such as:
 Bans
 Embargoes
 Quotas and taxes
 Enforce unfair certifications
which distort or mislead the
consumers and disrupt the
growth of vegetable oils, its
production and supply
potential

CONSEQUENCE OF BOYCOTT
World population growth, improved standards of living
and biofuel mandates mean that demand for vegetable oil
is bound to increase significantly. Any deliberate move
to reduce palm oil production thus inevitably implies a
shift in production towards lower yielding and more
expensive substitutes, resulting in:
Increases in land and resources requirements
Higher food prices and consumer items
Undermining sustainable palm oil sources
Delaying economic development in many countries

SUSTAINABLE AND AFFORDABLE
PALM OIL MEETS ALL CRITERIA
Palm oil is grown on the least amount of land
compared to other oilseeds
It is the highest yielding oilseed crop in the world
Palm oil plantations contributes to reducing GHG by
acting as a natural carbon sink
No other source of vegetable oil than palm oil can
actually spare more land and deliver more accessible,
abundant and affordable calories to people worldwide.
In a sense, palm oil is always discriminated against as
it is the only edible oil which certification is imposed.
Other oils do not have to meet this criteria

What to expect in 2016

Demand for oils & fats is set to rise and could exceed 205 million
MT in 2016
Of all the oils, palm oil is poised to be the leader in meeting this
demand need as it is the most efficiently produced oil
Palm oil will maintain as the leader in global oils and fats as it is
an attractive long term commodity for producers and consumers
In 2016, the growth in production is set to continue but the gap in
production between palm oil and other oils is set to widen further
Higher yield projections increasing stepwise from 4MT/ha to
almost 12MT/ha will make palm the oilseed crop of choice in
many countries aspiring for greater food (oils) security
What to expect in 2016

Conclusions
Palm oil is without doubt the ultimate edible oil when it comes to
affordability, sustainability and economic development
Palm oil prices have consistently remained lower than the prices
of other major vegetable oils
Palm oil is expected to continue if not grow in its role of meeting
global oils and fats demand
Palm oil production respects and adopts the 3Ps principles of
sustainability – People, Planet and Profit.
is the best time to buy palm oil which is
currently trading at an attractive discount to
other edible oils

THANK YOU
Follow me on Twitter
www.twitter.com/yusofbasironVisit Our Website : www.mpoc.org.my

MPC2015: Global Oils and Fats Scenario and Malaysian Palm Oil's Contribution

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