Developing  Palm  Oil    Export  to  China  

-­‐-­‐  The  Malaysian  Experience  

Tan  Sri  Datuk  Dr.  Yusof  Basiron,    Chief  Execu9ve  Officer,  MPOC  

 

Teah  Yau  Kun  MPOC �

Economy of China    

10.09%

11.30%

12.68%14.16%

9.63%

9.21%

10.45%

9.30%7.70% 7.70% 7.40%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Source: National Bureau of Statistics�

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......... ............

.........

....... ....... .......

China  GDP  Growth  2004-­‐2014   New  Normal  Economy

More  Sustainable�

Mid-­‐to  high-­‐rate  Growth �

Higher  Efficiency�

Lower  Cost�

Economy of China    

Source: National Bureau of Statistics�

Economic  Structure  Upgrade  2009-­‐2014�

Population and Oil & Fats Consumption  

1220

1240

1260

1280

1300

1320

1340

1360

1380

1400

1420

0

5

10

15

20

25

30

35

40

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Consumption Population

Volume  

(Million  MT)�

PopulaJon  (Million  

People)�

China    

0

5

10

15

20

25

30

35

40

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Import Consumption

–  A  Powerhouse  &  Significance  of  Oils  &  Fats  Import  and  ConsumpJon  Unit:  Million  

MT �

China    

0

5

10

15

20

25

30

35

40

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Palm  Oil Oils  &  Fats

Palm  Oil  ConsumpJon  

Unit:  Million  

MT �

China    

0  

1,000  

2,000  

3,000  

4,000  

5,000  

6,000  

7,000  

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014CPO PL RBD  PO PST

Palm  Oil  Import  

Unit:  

MT �

Historic Development of Palm Oil in China Onset  Palm  Oil  Unknown  in  China�l   Instant  Noodle  –  Perfect  Launch  Pad  for  Palm  Oil  into  China  

 

Historic Development of Palm Oil in China Onset  Palm  Oil  Unknown  in  China�

l   PORIM’s  Role  –  Technical  Service  with  Local  Industries  and            Agencies  Support  

l Deficient  in  Oils  and  FaciliJes  –  Palm  Olein  Introduced�

Success Story – Paving way for other product appplications l   Bulk  Blending  with  Oils  and  Drum  Transport  in  Cross-­‐Border              Trade  and  Smuggling    

�

Success Story – Paving way for other product appplications l   Solid  Fat  IntroducJon  to  Biscuit  and  ConfecJonery  

Issues  l   To  make  people  understand  palm  oil  including  the  government  policy            makers  and  to  differenJate  palm  oil  variety  and  in  Chinese  terminology      l   Edible  and  Industrial  palm  oil  

l   Quality  and  technical  challenges  in  the  winter  

l   WTO  negoJaJon  on  Quota  and  a\empt  to  get  P  Stearin  out  of            Quota    l   ProtecJonism  in  some  sector. �

Current Status Economic  Progress  and  Development  –  Diversifying  Demand�

Household  Uses11%

Instant  Noodle20%

Solid  Fats11%

Catering  &  Fast  Foods30%

Oleochemicals15%

Soap13%

Source: China National Grain & Oil Information Centre & MPOC Estimation�

Current Growth on Oils & Fats l   No  more  phenomenal  growth  but  consolidaJng  in  tandem  with  economic            and  sectorial  growth    l   MPOC  &  PORTSIM  offices  in  China  -­‐provide  services  to    the  market    l     MPOC  promote  potenJal  areas  of  growth  n  embrace  users  for  direct            consumpJon  of  palm  oil  in  inner  region  of  China  with  less  exposure    l   NutriJonal  informaJon  to  change  old  school  of  thoughts  in  nutriJonal            circles  and  embrace  palm  oil  as  healthy  oil    

l   Trading  in  RMB  currency  could  be  a  new  opJon  to  facilitate  trade  in  palm  oil  –  Boost  to  palm  oil  trade  

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