MARKET DEVELOPMENT
PEOC-2017 Focuses on Emerging Trend in Pakistan's 'Edible Oil Sector'
PEOC-2017 Focuses on Emerging Trend in Pakistan's 'Edible Oil Sector'
26/01/2017 (Business Recorder) - An international Conference, namely Pakistan Edible Oil Conference (PEOC-2017) was held here on January 21, focusing on emerging trend in 'edible oil sector' in Pakistan. It was organised by Pakistan Vanaspati Manufacturers Association (PVMA), All Pakistan Solvent Extractors Association (APSEA), Pakistan Edible Oil Refiners Association (PEORA) & Pakistan Soap Manufacturers Association (PSMA).
The conference was very well attended by the Edible Oil Industry from all over Pakistan, besides importers of edible oil and oilseeds and representative of Solvent Extraction Industry, Edible Oil Refining Industry and Soap Manufacturers Industry of Pakistan.
The conference was also attended by Dr Sikander Mandhario, Health Minister of Sindh; S M Muneer, Chief Executive of TDAP; Aga Jan Akhtar, Chairman, PQA; Zubair Tufail, President, FPCCI and various prominent representatives of Government institutions, besides foreign dignitaries from Malaysia, Indonesia, US, Germany, UK, China, Singapore and Argentina, including High Commissioner of Malaysia, Ambassador of Indonesia in Pakistan and diplomats.
The key note address was given by Dato' Zakaria Bin Arshad, Group President & Chief Executive Officer of FELDA Global Venture Sdn. Bhd, Malaysia. FGV is a global diversified and sustainable integrated Agri business leader advancing to lead as of top 10 global players by 2020. It is the world largest Plantation Operator and Producer of Crude Palm Oil (CPO) producing more than three million tons of CPO per annum. FELDA is regular exporter of quality palm oil products to Pakistan and service provider to Edible Oil industry of Pakistan.
Dato' Zakaria acknowledged cordial, warm and friendly relationship enjoyed both by Pakistan and Malaysia dating back more than six decades and shared close co-ordination and preference to Pakistan in all fields of trading. He also informed that FELDA have made largest investment in Joint Ventures in Pakistan and is committed to more business and industrial activities through establishment of new Joint Venture Projects as well.
The first technical paper was presented by Abdul Rasheed Janmohammed, Chief Executive, Westbury Group and PEOC-2017. It was very useful paper, informing that Pakistan total edible oil/fats consumption is around 3.9 million ton per annum and its per capita consumption is 16 kgs.
The local production of edible oils (cottonseed oil/rapeseed oil/sunflower seed & canola oil) is around 0.50 million tons/annum. The gap is met out from imports of around 2.7 million tons of edible oil in addition to availability of about 0.75 million tons of soft oils, extracted from imported oilseeds in the country, which was about 2.21 million tons in the year 2016, higher by about 56 percent compared to the year 2015.
Presently Indonesian share of the market is currently around 80 percent.
Analysing the market during the year 2016, Rasheed informed that the year had been vulnerable year for edible oil. Due to tightness in palm oil supply, CPO price is expected to trade higher for 4th quarter of 2016 and 1st quarter 2017, besides influence of Canola Oil and currency situation (as most of currencies depreciated against US Dollar) which brought effect on market price of commodities.
The conference proceeded with presentations of very informative and research papers by world renowned and eminent experts, economists & speakers, on various topics, briefly outlined below:
Dr James Fry by Chairman, LMC International UK spoke on the topic of "Looking back to the recent El Nino & forward to the Trump Era". Dr James Fry examined in detail scientific, informative and analytical effect of El-Nino on the plantation of oil palm in Indonesia & Malaysia last year and stated that the drought conditions practically had bad effect on cultivation, giving lower yield, lower production and resultants lower stocks which affected the market prices of palm oil.
Emily French, Managing Director, ConsiliAgra, United States spoke on the topic of "The Quiet Glant: Emerging economics, shifting demand drivers and the Global Grain & Oilseeds Outlook 2017". She, who arrived from the US, gave a detailed account of the agriculture aspects of different oilseeds like Soyabean oil, sunflower seeds & canola seeds. She informed the audience of the developments made in promotion of good quality cultivation of Soyabeans in US and South American countries.
James Ted Sutter, Chief Executive Officer, US Soyabean Export Council spoke on the subject of "Soyabean: Sustainably produced and packed with proteins". He threw light in detail on the sustainability of Soyabean production aspects, which is packed with rich protein in Soyabean Meal, beneficial for animal feed industry.
Muhammad Fadzil Hasan, Executive Director, GAPKI, Indonesia spoke on the topic of "Strengthening Trade and Investment between Indonesia & Pakistan in Palm Oil Industry".
Muhammad Fadzil Hasan highlighted the scenario of growing trade and investment between Indonesia and Pakistan in palm oil industry. He stated that Indonesia was the biggest supplier of Palm Oil to world.
Thomas Meilke, Director & Editor, Oil World ISTA, Germany, is one of the leading Economic Analyst & Business and keeps close eye on global markets and outlook of prices of various edible oil for the last over 40 years.
Meilke giving outlook of prices for the year 2016-17, informed that there was a drop of about 4 million tons in palm oil production (Malaysia and Indonesia combined) compared to last year 2015. Palm Oil, being the major oil, covers about 50 percent consumption world over. Last week palm oil price was even higher than sunflower oil. Indonesian Bio-Diesel regime would play an important role in the price determination. Short term outlook is strong. Malaysian currency, RM is expected to be strong by March/April. Soya oil price may not drop due to Bio-Diesel requirement. Sunflower Oil will continue to be cheaper to Soyabean Oil. Political uncertainties (Malaysian incoming Election & US new President, Trump's Policy) will have direct effect on the market.
Dorab Mistry, Director, Godrej International, UK, who is a leading analyst, spoke on the topic of "World Vegetable Oil Outlook trumped". He focused on the current world vegetable oil outlook and said it is uncertainty era in view of US new President's policies. He said there was lower production in the second half of 2016, in Indonesia and Malaysia. Sunflower Oil is taking market share because of its lower prices compared to palm oil. Palm oil is endangered due to drop in its stocks both in Malaysia and Indonesia. Genetically modified rapeseed is being introduced. Mistry foresees tightness in supply till March and then gradually pries may come down due to expected increase in productions.
In the midst of conference, there was a group discussion of experts of different fields of Pakistan Edible Oil Industry wherein views were exchanged regarding effect of Government fiscal policies/taxes and other problems encountered by the industry and about remedies available including measure to improve local cultivation. The conference concluded with Award Distribution Ceremony and Gala Dinner followed by musical evening.-PR
The conference was very well attended by the Edible Oil Industry from all over Pakistan, besides importers of edible oil and oilseeds and representative of Solvent Extraction Industry, Edible Oil Refining Industry and Soap Manufacturers Industry of Pakistan.
The conference was also attended by Dr Sikander Mandhario, Health Minister of Sindh; S M Muneer, Chief Executive of TDAP; Aga Jan Akhtar, Chairman, PQA; Zubair Tufail, President, FPCCI and various prominent representatives of Government institutions, besides foreign dignitaries from Malaysia, Indonesia, US, Germany, UK, China, Singapore and Argentina, including High Commissioner of Malaysia, Ambassador of Indonesia in Pakistan and diplomats.
The key note address was given by Dato' Zakaria Bin Arshad, Group President & Chief Executive Officer of FELDA Global Venture Sdn. Bhd, Malaysia. FGV is a global diversified and sustainable integrated Agri business leader advancing to lead as of top 10 global players by 2020. It is the world largest Plantation Operator and Producer of Crude Palm Oil (CPO) producing more than three million tons of CPO per annum. FELDA is regular exporter of quality palm oil products to Pakistan and service provider to Edible Oil industry of Pakistan.
Dato' Zakaria acknowledged cordial, warm and friendly relationship enjoyed both by Pakistan and Malaysia dating back more than six decades and shared close co-ordination and preference to Pakistan in all fields of trading. He also informed that FELDA have made largest investment in Joint Ventures in Pakistan and is committed to more business and industrial activities through establishment of new Joint Venture Projects as well.
The first technical paper was presented by Abdul Rasheed Janmohammed, Chief Executive, Westbury Group and PEOC-2017. It was very useful paper, informing that Pakistan total edible oil/fats consumption is around 3.9 million ton per annum and its per capita consumption is 16 kgs.
The local production of edible oils (cottonseed oil/rapeseed oil/sunflower seed & canola oil) is around 0.50 million tons/annum. The gap is met out from imports of around 2.7 million tons of edible oil in addition to availability of about 0.75 million tons of soft oils, extracted from imported oilseeds in the country, which was about 2.21 million tons in the year 2016, higher by about 56 percent compared to the year 2015.
Presently Indonesian share of the market is currently around 80 percent.
Analysing the market during the year 2016, Rasheed informed that the year had been vulnerable year for edible oil. Due to tightness in palm oil supply, CPO price is expected to trade higher for 4th quarter of 2016 and 1st quarter 2017, besides influence of Canola Oil and currency situation (as most of currencies depreciated against US Dollar) which brought effect on market price of commodities.
The conference proceeded with presentations of very informative and research papers by world renowned and eminent experts, economists & speakers, on various topics, briefly outlined below:
Dr James Fry by Chairman, LMC International UK spoke on the topic of "Looking back to the recent El Nino & forward to the Trump Era". Dr James Fry examined in detail scientific, informative and analytical effect of El-Nino on the plantation of oil palm in Indonesia & Malaysia last year and stated that the drought conditions practically had bad effect on cultivation, giving lower yield, lower production and resultants lower stocks which affected the market prices of palm oil.
Emily French, Managing Director, ConsiliAgra, United States spoke on the topic of "The Quiet Glant: Emerging economics, shifting demand drivers and the Global Grain & Oilseeds Outlook 2017". She, who arrived from the US, gave a detailed account of the agriculture aspects of different oilseeds like Soyabean oil, sunflower seeds & canola seeds. She informed the audience of the developments made in promotion of good quality cultivation of Soyabeans in US and South American countries.
James Ted Sutter, Chief Executive Officer, US Soyabean Export Council spoke on the subject of "Soyabean: Sustainably produced and packed with proteins". He threw light in detail on the sustainability of Soyabean production aspects, which is packed with rich protein in Soyabean Meal, beneficial for animal feed industry.
Muhammad Fadzil Hasan, Executive Director, GAPKI, Indonesia spoke on the topic of "Strengthening Trade and Investment between Indonesia & Pakistan in Palm Oil Industry".
Muhammad Fadzil Hasan highlighted the scenario of growing trade and investment between Indonesia and Pakistan in palm oil industry. He stated that Indonesia was the biggest supplier of Palm Oil to world.
Thomas Meilke, Director & Editor, Oil World ISTA, Germany, is one of the leading Economic Analyst & Business and keeps close eye on global markets and outlook of prices of various edible oil for the last over 40 years.
Meilke giving outlook of prices for the year 2016-17, informed that there was a drop of about 4 million tons in palm oil production (Malaysia and Indonesia combined) compared to last year 2015. Palm Oil, being the major oil, covers about 50 percent consumption world over. Last week palm oil price was even higher than sunflower oil. Indonesian Bio-Diesel regime would play an important role in the price determination. Short term outlook is strong. Malaysian currency, RM is expected to be strong by March/April. Soya oil price may not drop due to Bio-Diesel requirement. Sunflower Oil will continue to be cheaper to Soyabean Oil. Political uncertainties (Malaysian incoming Election & US new President, Trump's Policy) will have direct effect on the market.
Dorab Mistry, Director, Godrej International, UK, who is a leading analyst, spoke on the topic of "World Vegetable Oil Outlook trumped". He focused on the current world vegetable oil outlook and said it is uncertainty era in view of US new President's policies. He said there was lower production in the second half of 2016, in Indonesia and Malaysia. Sunflower Oil is taking market share because of its lower prices compared to palm oil. Palm oil is endangered due to drop in its stocks both in Malaysia and Indonesia. Genetically modified rapeseed is being introduced. Mistry foresees tightness in supply till March and then gradually pries may come down due to expected increase in productions.
In the midst of conference, there was a group discussion of experts of different fields of Pakistan Edible Oil Industry wherein views were exchanged regarding effect of Government fiscal policies/taxes and other problems encountered by the industry and about remedies available including measure to improve local cultivation. The conference concluded with Award Distribution Ceremony and Gala Dinner followed by musical evening.-PR