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Palm Oil


The Role of Malaysian Palm Oil Board (MPOB) in Catalyzing Palm Oil Consumption in China

Dato’ Dr. Mohd. Basri Wahid, Director General of MPOB

MPOB
? Established in May 2000; ? Research and Development relating to oil palm & palm oil - PORIM ? Regulation, licensing and enforcement of the Malaysian oil palm industry - PORLA ? Market development; ? Collection and dissemination of information on palm oil and its products; ? Technology transfer & commercialization of its research.

Malaysian Palm Oil Industry
? most efficient and cost competitive in the world oils and fats industry ? cover all aspects of palm oil and oil palm from plantation to the end products ? recognized worldwide for its high quality

Oil Palm Plantation

Milling & Refining

World Oils and Fats Production (2005)

Animal fats 17% Others 11%

Palm oil 24%

Palm oil Soybean Oil Rapeseed oil Sunflower oil

Lauric oil 5% Sunflower oil 7% Rapeseed oil 12% Soybean Oil 24%

Lauric oil Others Animal fats

Source: MPOB

Export: Major Oils and Fats Market Share (2005)
Animal fats 7%

Coconut oil 4% Palm Kernel oil 4%

Others 4%

Palm oil Soybean Oil Rapeseed oil Sunflow er oil

Sunflow er oil 6% Palm oil 53% Rapeseed oil 3% Soybean Oil 19%

Palm Kernel oil Coconut oil Animal fats Others

Source: MPOB

Major Importers of Palm Oil (‘000 tonnes)
COUNTRY CHINA 2005 4, 350 % 16.5

EU INDIA PAKISTAN OTHERS
TOTAL
Source: MPOB

4, 534 3, 326 1, 675 12, 523
26, 408

17.2 12.6 6.3 47.4
100

Palm Oil Export: Market Share (2005)
Others 11% Malaysia 51%

Indonesia 38%

Malaysia Indonesia Others

Total Export: 26.3 Million T
Source: MPOB

Competitive and Versatile Oil

Highest yield of 3.7 tonnes/hectare

Palm Oil

Palm Kernel Oil

Crude Palm Kernel Oil

Crude Palm Oil

RBD PKO

RBD Palm Oil

Versatility of Palm Oil
Various Applications and Uses ? ? Food Uses – 80%

Non-food Uses - 20%

MAJOR USES IN FOOD PALM OIL AND ITS PRODUCTS

COOKING OIL
VANASPATI MARGARINE

SHORTENING

Other Food Uses

Non-Food Uses

PALM OIL For Biofuel
?

Already leader in solid biofuel: 364 palm oil mills use palm fibre and shell successfully, self sufficient in energy Expected to lead again in liquid biofuels Use of palm oil as biofuel recently endorsed by Cabinet Committee to study the Effect of Escalating Petroleum Prices on the Economy Potential great, currently < 1% biodiesel from palm oil

? ?

?

MPOB/Carotino 60, 000 TPA Summer-grade Palm Biodiesel Plant

MPOB/Carotino 30, 000 TPA Winter-grade Palm Biodiesel Plant

Health and Nutrition

Palm oil – a natural product
? Trans Fat Free ? GMO Free

? Cholesterol Free
? Good Frying Medium ? Antioxidants – vitamin E, carotene - anti-cancer properties - reduce heart disease risk

Chinese oils and fats market
?

Oils and fats imports – future demand will increase, economic growth Important market for Malaysia and widely accepted in China Growth of palm oil imports during the last 10 years, future growth Present use – industrial food sector but growing use in non food sector

?

?

?

?

Potential use of palm oil in retail sector untapped

Chinese Imports of Malaysian Palm Oil
3500 ' 3000 0 0 2500 0 2000 T o 1500 n n 1000 e 500 s 0 2000 2001 2002 Year
Source: MPOB
2799 2546 1839 1293 1021 2961

2003

2004

2005

Palm Oil Research & Technical Service Institute Of Malaysian Palm Oil Board (PORTSIM)

Established in December 2005

PORTSIM is located in Shanghai Xinzhuang Industrial Park

Official Opening of PORTSIM

Official Opening of PORTSIM and Seminar

PORTSIM Facilities

PORTSIM

Laboratory

Scope of Service
? Dissemination of information on palm oil products ? Technical advisory service and support to palm oil users ? Analytical services ? Research & development on palm oil & its products ? Technical collaboration between MPOB and Chinese Universities and research institutes

Office & Laboratory

Activities of PORTSIM

? Malaysia-China Palm Oil Trade Fair & Seminar ? Local Trade & Customer Fairs ? Participation in Shandong Enterprise-UniversityResearch Institute Collaboration Exhibition & Talk ( SECET)

? Technical Collaboration
Chinese Universities & Research Institutes
1. Chinese Agricultural University

2. Shanghai Jiaotong University
3. Wuxi Scientific Research & Design Institute of the State Administration of Grain

? In-House R & D
● New Palm Oil Based Products for utilization in Chinese food ● Replacer Fats
● Palm Oil By-Products Utilizaton

? Technical advisory service (TAS) visits

● Provision of advice & dissemination of related technologies & information on palm oil ● Assistance in Palm Oil Product utilization in Chinese food and non-food products

Other Activities
● Technical/Scientific Publications ● Participation in scientific conferences, forums and exhibitions ● Educational Roadshows

Conclusion
? The Malaysian Government support ? MPOB’s strong research capacity and expertise ? Establishment of PORTSIM ? Collaboration with MPOC ? Synergy and catalyst for the import and consumption of palm oil in China

PORTSIM


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