1. business and industrial
2. energy
3. oil

Palm Oil Trade Awareness Program
(POTAP)
27 October 2014
Malaysian Palm Oil in The Global
Oils & Fats Development
BY
Tan Sri Datuk Dr. Yusof Basiron
Chief Executive Officer
Malaysian Palm Oil Council
PALM OIL TRADE AWARENESS PROGRAM (POTAP)
KUALA LUMPUR, OCTOBER 2014
•  ABOUT MPOC
•  THE MALAYSIAN PALM OIL INDUSTRY
•  MALAYSIAN PALM OIL IN THE GLOBAL OILS
AND FATS SCENARIO
•  CHALLENGES TO THE PALM OIL INDUSTRY
•  CONCLUSION
PALM OIL TRADE AWARENESS PROGRAM (POTAP)
KUALA LUMPUR, OCTOBER 2014
MALAYSIAN PALM OIL COUNCIL
Promo%ng the market expansion of Malaysian palm oil and its products by enhancing their image, crea%ng be;er acceptance through awareness of various techno-­‐economic advantages and environmental sustainability. PALM OIL TRADE AWARENESS PROGRAM (POTAP)
KUALA LUMPUR, OCTOBER 2014
OBJECTIVES
•  To enhance trade opportuni%es in the market place by addressing the latest opportuni%es in the market •  To encourage product diversifica%on using Malaysian palm oil as the key ingredient, thus gaining a prominent role in new and reformulated products •  To improve understanding of palm oil, enhancing its applica%on and elucida%ng its numerous strengths and benefits •  To uphold the good name of Malaysian palm oil by closing the gap between the issues of percep%on, allega%ons and reali%es of palm oil •  To safeguard Malaysian palm oil as the most dominant in terms of market coverage, nutri%onal benefits, environmental sustainability and commercial success PALM OIL TRADE AWARENESS PROGRAM (POTAP)
PALMKUALA
OIL TRADE
FAIROCTOBER
& SEMINAR
2014
LUMPUR,
2014
SHANGHAI CHINA
MPOC ACTIVITIES
MARKETING & MARKET
DEVELOPMENT
PROMOTIONS &
BRANDING
SCIENCE &
ENVIRONMENT PROMOTIONS
COMMUNICATIONS
ISSUES MANAGEMENT
Customers
Consumers of Palm Oil
Anti Palm Oil Campaigners
PALM OIL TRADE AWARENESS PROGRAM (POTAP)
KUALA LUMPUR, OCTOBER 2014
MPOC Activities
MARKETING & MARKET
DEVELOPMENT
PROMOTIONS &
BRANDING
SCIENCE &
ENVIRONMENT Seminars and Conferences
Palm Oil Industry Leadership Award (PILA) Dinner
Dialogues with traders/government officials
Consumer Education Programmes
Trade Exhibitions
Publication/Advertising activities
Market missions
PRIME/PRIME-INVEST
CARES
PR activities – Familiarization programs
Lobbying Activities
Market Studies PALM OIL TRADE AWARENESS PROGRAM (POTAP)
KUALA LUMPUR, OCTOBER 2014
MPOC Serves Multiple Stakeholders within the industry
Govt
Schemes
FELDA
Palm kernel
crushers
Small holders
Plantation
companies
Refiners
Upstream
Producers
Downstream
Producers
Oleochem
producers
Palm-based
products
manufacturers
Specialty fats
producers
Retail
Institutional
Exporters/
Importers
Customers
Investors
MPOA
Ministry of
Agriculture
EMPA
ISP
MOSTE
MPOC
Industry
Organisations
MEOMA
Government
Ministries &
Agencies
POMA
MOMG
Other
Players
PORAM
NASH
NGOs
Unions
DOE
MAPA
PALM OIL TRADE AWARENESS PROGRAM (POTAP)
KUALA LUMPUR, OCTOBER 2014
MPOB
Ministry of
Plantation
Industries &
Commodities
DISTRIBUTION OF THE MALAYSIAN OIL PALM
BUSINESS & OWNERSHIP IN 2013
Source : MPOB Total Area : 5.23 million Hectares PALM OIL TRADE AWARENESS PROGRAM (POTAP)
KUALA LUMPUR, OCTOBER 2014
DISTRIBUTION OF THE MALAYSIAN OIL PALM
BUSINESS & OWNERSHIP IN 2013
Peninsular Malaysia
Sabah
Sarawak
Malaysia
Sector
No
Capacity In
Operation
(MT)
No
Capacity In
Operation (MT)
No
Capacity In
Operation (MT)
No
Capacity In
Operation (MT)
247
56,866,200
124
32,281,200
63
14,943,000
434
104,090,400
PK Crushers
27
4,168,800
13
2,129,200
5
757,200
45
7,055,200
Refineries
35
14,647,200
14
7,734,300
6
2,930,000
55
25,311,500
Oleochemicals
17
2,598,971
17
2,598,97
FFB Mills
Source : MPOB PALM OIL TRADE AWARENESS PROGRAM (POTAP)
KUALA LUMPUR, OCTOBER 2014
MALAYSIAN PALM OIL PRODUCTION VS EXPORT
(MILLION MT)
25.00 20.00 15.00 10.00 5.00 -­‐ 2007 Source : MPOB 2008 2009 2010 Produc%on 2011 Export PALM OIL TRADE AWARENESS PROGRAM (POTAP)
KUALA LUMPUR, OCTOBER 2014
2012 2013 PALM OIL IN THE GLOBAL OILS & FATS
MARKET
•  Palm oil is the most 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 affordable vegetable
oil and the lowest cost oil to produce and to
refine.
•  By reason of its availability and (relatively) low
cost, it is an important component of the
increasing intake of oils and fats in the
developing world
PALM OIL TRADE AWARENESS PROGRAM (POTAP)
KUALA LUMPUR, OCTOBER 2014
GLOBAL OILS AND FATS PRODUCTION 1990
– 2013 ( 000 MT)
60000 50000 40000 30000 20000 10000 0 1990 Palm Oil Source : Oil World 1995 Soybean Oil 2000 Rapeseed Oil 2005 2010 Sunflower Oil PALM OIL TRADE AWARENESS PROGRAM (POTAP)
KUALA LUMPUR, OCTOBER 2014
2013 Other Oils GLOBAL OILS AND FATS EXPORT
1990 – 2013 ( 000 MT)
50000 45000 40000 35000 30000 25000 20000 15000 10000 5000 0 1990 Palm Oil Source : Oil World 1995 Soybean Oil 2000 Rapeseed Oil 2005 2010 Sunflower Oil PALM OIL TRADE AWARENESS PROGRAM (POTAP)
KUALA LUMPUR, OCTOBER 2014
2013 Other Oils PALM OIL – MAIN SOURCE OF GLOBAL OILS &
FATS SUPPLY
Ø  The world's current demand for oils and fats is
being met by 17 major sources. Production of
oils and fats totalled 189.9 million MT in 2013 of
which palm oil and soybean production were 56
million tonnes and 43 million MT respectively,
thus together accounting for more than 50% of
the total
Ø  Production of palm oil has grown faster than
that of any other oil or fat and overtook soybean
as the most produced oil in 2005
PALM OIL TRADE AWARENESS PROGRAM (POTAP)
KUALA LUMPUR, OCTOBER 2014
AVERAGE ANNUAL GROWTH IN WORLD VEGETABLE OIL
PRODUCTION (1990 – 2013)
60.00 (Million MT) 50.00 40.00 Average Annual Growth (1990 – 2013) Palm Oil (7.03%) Rapeseed Oil (5.2) Soybean Oil (4.6%) Sunflower Oil (4.4%) Coconut Oil (-­‐0.01%) Palm Kernel Oil (6.3%) 30.00 20.00 10.00 Coconut Oil
Source: Oil World PALM OIL TRADE AWARENESS PROGRAM (POTAP)
KUALA LUMPUR, OCTOBER 2014
2013
Palmkernel Oil
2012
Rapeseed Oil
2011
Sunflower Oil
2010
Soybean Oil
2009
Palm Oil
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
Source : Oil World 1991
1990
0.00 CHALLENGES TO PALM OIL INDUSTRY
Attacks on palm oil by Environmental
NGOs
PALM OIL TRADE AWARENESS PROGRAM (POTAP)
KUALA LUMPUR, OCTOBER 2014
CHALLENGES TO PALM OIL INDUSTRY
NGO POLIVIES INFRINGE SOVEREIGN RIGHT OF A COUNTRY Ø  It fails to consider the scien%fic impact on the development of underdeveloped countries with plen%ful access to land banks Ø  Imposi%on of no deforesta%on policy means denying them of their sovereign right to develop land for agriculture purpose as without agriculture such a state or country will be condemned to stay in perpetual poverty Ø  No interna%onal or UN framework that supports a No Deforesta%on policy Ø  There is no permanent grassland or low carbon stock land as forest will be re-­‐established over %me PALM OIL TRADE AWARENESS PROGRAM (POTAP)
KUALA LUMPUR, OCTOBER 2014
CHALLENGES TO PALM OIL INDUSTRY
Government Policies Not Favouring Palm Oil
q Certain countries have protectionist measures
imposed to protect their oilseeds against
competition from imported palm oil
q Lobbies by local associations to impose higher
duty
q Active lobbying by NGOs to curtail palm oil use
q Proposed labeling laws against palm oil
q Continuous ban on refined palm oil or other
palm products
PALM OIL TRADE AWARENESS PROGRAM (POTAP)
KUALA LUMPUR, OCTOBER 2014
CHALLENGES TO PALM OIL INDUSTRY
TRADE PROTECTIONISM
With all its posi3ve a5ributes, the oil palm industry is subjected to cer3fica3ons, while other oilseed producers are not required to, or have yet to adopt cer3fica3ons. Efforts to implement the requirement for cer3fica3on must be mandated for all vegetable producing countries, to ensure a level playing field. PALM OIL TRADE AWARENESS PROGRAM (POTAP)
KUALA LUMPUR, OCTOBER 2014
Corporate Social Responsibilities
Malaysian Palm Oil Wildlife Conserva3on Fund Launched in 2006 •  USD 6.25 mil (RM 20 mil): 50% from the Malaysian palm oil industry & 50% from the Government •  MPOWCF welcomes donaLons & grants •  MPOC will match third party funding on a 1:1 basis • 
PALM OIL TRADE AWARENESS PROGRAM (POTAP)
KUALA LUMPUR, OCTOBER 2014
PROGRAMMES
A joint effor t
between SWD and
MPOC to establish
the Borneo Elephant
W ildlife Sanctuar y
(BEWS). This is
aimed to protect and
conserve the Pygmy
Elephant. BEWS will
ultimately become a
r e s e a r c h a n d
reference centre for
the Pygmy Elephant.
Active participation
and investments from
oil palm sector is
anticipated to realize
this objective for the
long term!
PALM OIL TRADE AWARENESS PROGRAM (POTAP)
KUALA LUMPUR, OCTOBER 2014
PROGRAMMES
Satellite-tracking, Population Dynamics, Ecology
And Conservation Of The Bornean Banteng In
Sabah
MPOC s Collaboration
with the Danau
Girang Field Centre of
Cardiff University, UK
to conser ve unique
and rare wildlife
PALM OIL TRADE AWARENESS PROGRAM (POTAP)
KUALA LUMPUR, OCTOBER 2014
PALM OIL TRADE AWARENESS PROGRAM (POTAP)
KUALA LUMPUR, OCTOBER 2014
Way Forward
New focus for Europe & USA market Branding strategy * COA & COB/ brand adop3on by suppliers/ forest biobanks Reach & Teach strategy * Allows for teaching consumers on a product-­‐ educa3onal / print media/ documentaries – long on copy lobby work Reach & Touch strategy * Adver3sing /PR/ GR PALM OIL TRADE AWARENESS PROGRAM (POTAP)
KUALA LUMPUR, OCTOBER 2014
MALAYSIAPALM SCHEME
This scheme
provides opportunity to those admitted into
scheme to assure their clients that :
q  Their palm oil is obtained from oil palms cultivated on legal
agricultural land
q  Using responsible agricultural and management practices
evolved over many decades
q  The oil palm is as responsibly cultivated similar to other oil
seed crops eg rapeseed and soyabean
PALM OIL TRADE AWARENESS PROGRAM (POTAP)
KUALA LUMPUR, OCTOBER 2014
CONCLUSION
Ø Palm oil will continue to be a major source of
oils & fats that is required to meet global food
security demands
Ø Oil palm cultivation is shown to require less land
to produce each unit equivalent of edible oil
Ø W hen arable land is limited, it makes sense to
choose palm cultivation over other oilseeds given
the higher yields from oil palm
Ø 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
PALM OIL TRADE AWARENESS PROGRAM (POTAP)
KUALA LUMPUR, OCTOBER 2014
Conclusion
Ø Palm oil is a major revenue earner for
Malaysia and it can be the same for the
developing countries
Ø Pa l m O i l w i l l a s s i s t t h e d eve l o p i n g
countries to promote poverty eradication
and improve income for small holders and
uplift the economy of developing nations
Ø Palm oil production respects and adopts the
3Ps principles of sustainability – People,
Planet and Profit.
PALM OIL TRADE AWARENESS PROGRAM (POTAP)
KUALA LUMPUR, OCTOBER 2014
THANK YOU
Visit Our Website : http www.mpoc.org.my
Or
my blog: http://www.ceopalmoil.com
PALM OIL TRADE AWARENESS PROGRAM (POTAP)
KUALA LUMPUR, OCTOBER 2014