marketing: 2012 kpi’s and current environment
TRANSCRIPT
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US Oils & Fats Trade – Focus on Palm POTS - Kuala Lumpur, Malaysia - October 16, 2012
Brent Campbell Business Development Manager – AAK USA
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Areas of Focus
US Consumption Trends
Current Issues & Opportunities
Usage & Labeling of Interesterified Fats
Edible Product Applications for Palm Oil – -Bakery
– -Frying
– -Confectionary
– -Dairy
Q&A
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US Oil Consumption History
0
5
10
15
20
25
30
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
Peanut
Sunflower Seed
Olive
Cottonseed
Palm Kernel
Coconut
Palm
Rapeseed
Soybean
bill
ion
lbs
US Domestic Consumption of Edible Oils
Palm oil has become an increasingly important part of the US oil market
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Usage of Edible Oils by Product Type
0.00
5,000.00
10,000.00
15,000.00
20,000.00
25,000.00
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Other (Confectionary Fats, etc)
Margarine Oil
Salad or Cooking Oils
Baking or Frying Fats
Domestic Shipments of Edible Fats & Oils (millions pounds)
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US Palm Oil Imports
1036
994
980
1021
1111
900
950
1000
1050
1100
1150
2008/09 2009/10 2010/11 2011/12 2012/13
Thousand Metric Tons
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Current Challenges & Opportunities
Trans Fatty Acid removal/reformulation -
Saturated Fatty Acid reduction -
Sustainable Oil Solutions -
Weak Cocoa Prices -
Global Economy -
= Opportunity
= Challenge
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5-Year Cocoa Price History (USD/MT)
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Usage & Labeling of Interesterified Fats
IE oils are very prevalent in the US, but nearly impossible to quantify due to the lack of a labeling requirement
The US FDA has stated that it is not necessary to declare “Interesterified” on the ingredient label unless the product contains a hydrogenated component, in which case producers have the option to declare the hydrogenated component individually, or to label it all as “interesterified”
“Modified” is not an acceptable descriptor in the US
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Palm Oil Product Applications
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Edible Applications for Palm Oil in the United States
Bakery – Zero-Trans Shortenings & Flakes, Margarines
•-Biscuits, Sweet Breads, Pizza (frozen), Refrigerated Dough, Pies
Frying – Zero-Trans Frying Oil
•-Donuts, Snack Cakes, Fried Desserts
Confectionary – Coating Fats (Cocoa Butter Equivalents & Substitutes)
– Filling Fats
Dairy – Whipped Toppings
– Non-Dairy Creamer
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Bakery
In most cases, dough fats are partially crystallized when added to the dough. Therefore the demands on crystallization properties & the crystal structure of bakery fats are very specific.
Four methods of delivery
Solid cubes with a homogeneous crystal structure
Flakes
Liquid deliveries, which need to be crystallized before use
Pumpable shortenings, basically a slurry of crystals and liquid fractions.
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Zero-Trans Shortenings
Wide range of plasticized shortenings utilized
All-purpose shortenings commonly made from 100% RBD palm
Variations include blends of:
– -RBD palm/canola
– -Hard palm/soy or canola
– -IE blends of numerous oils with palm hard stock (PKS, PKO, Super Stearin)
Pies, Cookies, Cakes, Biscuits
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Shortening Flakes
Flaked fat that improves baking performance and offers superior handling characteristics
Typically made from PHSBO or fractionated palm
– -Palm blends are often IE
– -PHF, POLN most popular fracs
– -PKO popular from functional perspective, but recent price volatility has caused some demand destruction
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Frying Oils
US food processors have transitioned away from PHSBO as a frying oil
Liquid veg oils are now preferred
Pam oil/olein has become the most used source oil today due to economy of scale and the need to reduce or eliminate trans from hydrogenated soybean/cottonseed oils
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Coating Fats
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Cocoa Butter Alternatives
Cocoa Butter Alternatives
CBAs
Cocoa Butter Equivalents Cocoa Butter Improvers
CBEs/CBIs
Cocoa Butter Replacers CBRs
Cocoa Butter Substitutes CBSs
Fractionated Non-lauric Non-trans
Hydrogenated/ unhydrogenated
Lauric Non-trans
Hydrogenated/ unhydrogenated
Non-lauric High trans/low trans
Trans Fatty Acid Levels of these groups
Typical CBE = < 1% Typical CBR = 50% – 70% Typical CBS = < 1%
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Ice Cream Coating Fats
The fat content of ice cream coatings is higher than most coatings for bars or bakery products. The total fat content could be around 50-65% fat.
With that amount of fat the requirements will be critical.
It must,
Set quick -but not too quick
Be soft -but firm
Melt rapidly -but be solid before eating
The requirements are indeed contradictory, but they can be met by using a quick-solidifying vegetable fat with a low melting point.
CNO, PKO, POLN, and blends of these oils
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Example of Innovative, Low-Saturated Product
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Filling Fats
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Requirements of a filling
Processing – Crystallisation
speed?
– Tempering?
– Rework?
Stability
Storage temperature?
Shelf life?
Recipe
Nuts?
Soft toffee?
Chocolate covered?
Sensory
Hard or soft?
Cool-melting?
Flavour release?
Mousse structure?
Health/image/labelling
Vegetable fat?
Reduced amount of SAFA?
The choice of filling fat affects many properties
Best Oils: PMF, Palm Kernel, Palm Oil
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Dairy Fat Replacement
Whipped cream toppings
Coffee creamers
Cheese analogs
Ice cream
Optimal fat for Whipping Cream and Non-Dairy Coffee Creamer: PKO & CNO
Optimal fat for cheese analogs: PO, PK, Canola
Optimal fat for ice cream: Palm & PKO
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Questions?