palm oil prospects & opportunities in...
TRANSCRIPT
Malaysian Palm Oil Prospects & Opportunities in Pakistan
By Fatimah Zaharah Md Nan
Faisal Iqbal Malaysian Palm Oil Council
Outline
• Pakistan Agriculture Sector
• Domestic Oils and Fats Scenario
• Palm Oil Trade in Pakistan
• MPO Prospects and Opportunities in Pakistan
• Conclusion
Pakistan Agriculture Sector
• Total land area 770,880 sq km
• 35% - agricultural land • 57% - permanent forest, mountain slopes, desert and urban settlements • Contributes 24% of the total country’s GDP
PAKISTAN OIL AND FATS
SUPPLY & DEMAND SITUATION
Pakistan – Oilseed Production
0
1000
2000
3000
4000
5000
6000
0
1000
2000
3000
4000
5000
6000 1
99
4/9
5
19
95
/96
19
96
/97
19
97
/98
19
98
/99
19
99
/00
20
00
/01
20
01
/02
20
02
/03
20
03
/04
20
04
/05
20
05
/06
20
06
/07
20
07
/08
20
08
/09
20
09
/10
20
10
/11
20
11
/12
20
12
/13
Oils
ee
d P
rod
uct
ion
(Th
T)
Oils
ee
d A
rea
(Th
Ha)
Oilseed Area
Oilseed Production
Source: Oilworld
0
500
1000
1500
2000
2500
3000
3500
4000
4500
0
500
1000
1500
2000
2500
3000
3500
4000
4500
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
Oils
ee
d P
rod
uct
ion
('0
00
T)
Co
nsu
mp
tio
n (
'00
0 T
)
Consumption
Oilseed Production
Pakistan Oils and Fats: Domestic Oilseed Production Vs
Consumption
Source: Oilworld
Pakistan – Oils and Fats Consumption
0
50
100
150
200
250
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000 2
00
4
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
20
18
20
19
20
20
Po
pu
lati
on
(M
n P
eo
ple
)
O/F
Co
nsu
mp
tio
n (
'00
0 T
)
consumption
population
Source: Oilworld
Pakistan Demographics Evolution
• Total population increased over four‐fold
• Emergence of mega‐cities
• Mega cities have a population of more than 10 million people
• Pakistan's urban population expanded over seven‐fold
• Dramatic social changes have led to rapid urbanization
• In 1950, only 29.8% of people lived in urban areas
• By 2020, an estimated 57% will live in cities
Pakistan – Oils and Fats Consumption Vs Production
0
500
1000
1500
2000
2500
3000
3500
4000
2004 2005 2006 2007 2008 2009 2010 2011 2012
Vo
lum
e (
'00
0 M
T)
Consumption Production
Source: Oilworld
Pakistan – Oils and Fats Consumption Vs Production
0
500
1000
1500
2000
2500
3000
3500
4000
4500
2004 2005 2006 2007 2008 2009 2010 2011 2012
Vo
lum
e (
'00
0 M
T)
Consumption
Imports Production
Source: Oilworld
Pakistan - Oils and Fats Consumption
Source: Economic Survey & Port Data from Shipping Agents
Pakistan - Oils and Fats Imports
Soybean Oil
17%
Palm Oil 78%
Tallow & Grease
5%
1993
Soybean Oil 2%
Palm Oil 96%
Tallow & Grease
2%
2012
Source: Oilworld
Pakistan Oils and Fats Consumption Pattern
Pakistan Oils and Fats Consumer
• Oils and Fats Processing Industry
• Food Industries (Vanaspati, Food Manufacturing, Hotel & Catering)
• Household
• Non Food Users (soap, personal care and etc)
Pakistan - Oils & Fats Processing Industry
The oils & fats industry in Pakistan constitutes the following:
• Physical Refining Industry
• Chemical Refining Industry
• Solvent Extraction Industry
Pakistan - Oils & Fats Processing Industry
No of Units
Capacity (mn t) Utilization Share of
imports
Physical Refining 10 1.5 28% 20%
Chemical Refining 90 3 50% 72%
Solvent Extraction 27 1.4 66% 14%
Pakistan – Food Industry
Pakistan : Demographics Evolution
• Urbanization
• Changing Lifestyles
• Income Growth
• Improve Standard of Livings
Pakistan Oils and Fats Prospects & Opportunities
Growing Food Sector in Pakistan
Growing Food Sector in Pakistan
• Fast food industry in Pakistan which started formally in 1997 with launch of McDonalds has grown significantly over the past 15 years
• Industry registered a growth of 15% in the first 10 years and then continued at an average rate of 7%
• Leading international chains like McDonalds, Pizza Hut, Dominos, Hardees, KFC, Nando’s, Papa Johns, Subway etc. have presence in Pakistan
Growing Food Sector in Pakistan
• Despite difficult economic, security and political conditions, new international food chains have opened outlets in Pakistan
• New fast food joints like Burger King, Papa Roti, Fat Burger, Yogen Fruz, Tutti Frutti Frozen Yogurt etc.. are making ways into Pakistan
• Palm olein is being used by most of the fast food industry leaders for frying purposes. Major fast food chains do import directly from Malaysia.
Growing Food Sector in Pakistan
• Palm olein based specialized frying oil is being produced by local industry to cater the need of the local organized and unorganized sector (restaurants, ready to eat food joints and snack)
• Other niche market such as confectionery, ice cream and chocolate as well as non dairy milk replacer and creamer could be among new areas to be explored
Growing Food Sector in Pakistan (Household)
• Urbanization and establishment of hypermarkets such as hyperstar has created demand for consumer pack products.
• To cater the demand of more sophisticated consumers , consumer pack super olein was introduced and so far there are 2 superolein brand available in the markets.
Other potential areas (non food sectors)
• Soaps & Oleo chemicals
• Paints & Pharmaceuticals
• Animal feed
• To strengthen existing market share through product diversification
- Blending of olein
- Introduce more consumer pack olein
• To intensify market expansion in oleochemical sectors and animal feed
MPO Way Forward
conclusion
• Limited resources in term of agricultural land availability will continue to be Pakistan major challenges towards self sufficiency
• Population of 180 million and growing at 1.5% - 2% every year – huge demand for oils and fats
• Changing consumers demographics – urbanization, improve standard of livings
• Growing fast food and snack food market means more opportunities for usage of palm olein
conclusion
• Palm oil price competitiveness would make palm oil the preferred choice.
• Logistic advantage over other competing oils (soft oils)
• Versatility of use
• Strong Malaysian presence with joint ventures
THANK YOU THANK YOU