1. PALM OIL IN THE GLOBAL OILS & FATS
MARKET
BY
MALAYSIAN PALM OIL COUNCIL
EGYPT

2. 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

3. 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

4. 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

5. MPOC Worldwide Offices
10 OFFICES COVERING 6 REGIONS

6. 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

7. 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

8. 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

9. 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

10. 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%

11. 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%

12. 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.

13. 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%

14. 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%

15. 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

16. 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.

17. 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

18. 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).

19. 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

20. 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

21. 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

22. 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

23. 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.

24. 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