8TH GLOBAL OILS & FATS FORUM

2013 PLENARY PAPER

BY TAN SRI DATUK DR YUSOF BASIRON

CEO, MALAYSIAN PALM OIL COUNCIL

MARKET CHALLENGES AND GLOBAL OPPORTUNITIES FOR PALM OIL

3 OCTOBER 2013

PEABODY HOTEL, ORLANDO, FLORIDA

USA

PRESENTATION OUTLINE

1. Global Oils & Fats Production 1990 – 2012

2. Market Challenges for Palm Oil a) The USA Supply and Demand Outlook b) Global Oils & Fats Outlook c) Palm Oil Environment & Health Issues

– The Facts 3. Conclusions

GLOBAL OILS & FATS PRODUCTION AND

CONSUMPTION 1990 – 2012

WORLD OILS & FATS PRODUCTION 1990 - 2012

1990 2000 2010 2012 Palm Oil 11,013 21,874 46,011 53,446 Soybean Oil 16,097 25,531 40,217 41,758 Rapeseed Oil 8,160 14,470 23,966 24,444 Sunflower Oil 7,869 9,700 12,551 14,831 Others 37,752 43,130 49,813 51,776

-

10,000

20,000

30,000

40,000

50,000

60,000

(‘000

mt)

WORLD OILS & FATS CONSUMPTION 1990 - 2012

1990 2000 2010 2012

Palm Oil 11.08 21.75 45.57 51.74

Soybean Oil 16.13 25.17 39.13 41.68

Rapeseed Oil 8.2 14.27 23.62 24.13

Sunflower Oil 7.89 9.47 12.8 14.52

Others 37.61 43.09 50.59 51.54 Total

80.91 113.75 171.71 183.61

Population (Billion) 5.27 6.07 6.77 7.02

Gross World Product (Trillion USD) 27.54 43.61 74.54 83.12

WORLD OILS & FATS CONSUMPTION 1990 - 2012

80.91

113.75

171.71 183.61

5.27 6.07 6.77 7.02

27.54

43.61

74.54

83.12

0

10

20

30

40

50

60

70

80

90

0

20

40

60

80

100

120

140

160

180

200

1990 2000 2010 2012

(US$

Tril

lion)

Consumption (Million MT) Global Population (Billion) Gross World Product (US$ Trillion)

OILS & FATS CONSUMPTION BY MAJOR COUNTRIES 2012

Country Population (Million) Consumption (million MT)

Kg/year

China 1,354 34,290 25.32

EU-27 504 23,540 46.71

India 1,241 18,870 15.21

USA 315 17,470 55.46

Indonesia 242 8,310 34.34

Brazil 197 7,840 39.80

Pakistan 182 3,880 21.32

Argentina 41 3,500 85.37

Russia 143 3,220 22.52

Egypt 84 1,950 23.21

OILS & FATS CONSUMPTION BY MAJOR COUNTRIES

Consumption in each country tends to favor locally produced oils and fats. In North America, Europe and the

Soviet Union, annual seed crops are the main sources of oil In tropical countries, coconut oil and

palm oil together with groundnut oil are the main types produced and consumed.

OILS & FATS CONSUMPTION World consumption of oils and fats has

grown steadily during the last twenty five years. Consumption over the last five years has increased from 152 million tonnes in 2007 to 183 million tonnes in 2012, or 6 million tonnes additional/yr The growth rate in recent years has been

higher than the rate that prevailed in the 1990's due to the incremental demand especially from the biofuels market.

OILS & FATS CONSUMPTION BY MAJOR COUNTRIES

For consumption, the list is headed by two rich countries (Europe and USA) and by two highly populated countries (China and India).

The US and EU are using palm oil to reduce trans fats in product formulation. The US and EU also consume high level of saturated fats from animal sources, cheese, milk, meat, butter. These saturated fats are not available for use in replacing trans fats in product formulations.

Palm oil was shown (Hornstra) to reduce cholesterol compared to fats in the habitual western diet. It doubly improves the cholesterol benefit by replacing trans fats in product formulation, in addition to obtaining improved functionality.

OILS & FATS CONSUMPTION In the period from 1999 to 2005, annual increases in

consumption were typically in the range of 4 to 5 million tonnes and arose primarily from the growth in demand for oils and fats as a food. Annual increases in consumption thereafter have been higher and reflect the additional use of oils and fats as biofuel feedstock.

World average per capita consumption of all oils and fats has also grown progressively each year during the last decade from a level of 18.9 kg in 2001 to 25.9 kg in 2012. Consumption per capita is closely related to income.

To produce 6 million tonnes/yr additional oils, we need 15 million ha of new soya land, or 1.5 million ha for palm oil..severe demand on new land areas. We need all sectors to help produce the annual new supply of oils and fats.

OILS & FATS CONSUMPTION In 2012, per capita consumption was 55 kg and 49 kg

in the US and the EU27 respectively, compared to 15 kg and 25 kg for India and China respectively.

At low income levels, elasticity of demand is high, whereas at high income levels, elasticity is reduced to values close to zero.

The highest increases in consumption will be in low to middle income countries, where increasing per capita income can combine with relatively high rates of population growth.

These high growth countries will tend to be in the developing world where palm oil has traditionally been strong-- more demand pressure on palm oil.

CONSUMPTION – PALM OIL VS OTHER OILS

Palm Oil 14%

Soybean Oil

20%

Rapeseed Oil

10% Sunflower Oil

10%

Others 46%

1990

Palm Oil 19%

Soybean Oil

22%

Rapeseed Oil

13%

Sunflower Oil 8%

Others 38%

2000

CONSUMPTION – PALM OIL VS OTHER OILS

Palm Oil 27%

Soybean Oil

23%

Rapeseed Oil

14%

Sunflower Oil 7%

Others 29%

2010

Palm Oil 28%

Soybean Oil

23%

Rapeseed Oil

13%

Sunflower Oil 8%

Others 28%

2012

TOTAL WORLD OILSEED OIL PRODUCTION

(INCL. PALM OIL) 2008 - 2012

Source : Oil World

0

10

20

30

40

50

60

2008 2009 2010 2011 2012

(Mil

lio

n M

T)

Soybean oil Sunflower oil Rapeseed oil

Palm Oil Palm Kernel Oil Other Oils

WORLD OILS & FATS PRODUCTION 2012

-

10,000

20,000

30,000

40,000

50,000

60,000

Palm Oil Soybean Oil Rapeseed Oil Sunflower Oil Others

Palm Oil Soybean Oil Rapeseed Oil Sunflower Oil Others

OILS & FATS EXPORTS 1990 – 2000

Palm Oil 42%

Soybean Oil

19%

Rapeseed Oil 5%

Sunflower Oil 8%

Others 26%

2000

Palm Oil 36%

Soybean Oil

14% Rapeseed Oil 7%

Sunflower Oil 9%

Others 34%

1990

OILS & FATS EXPORTS 2010 - 2012

Palm Oil 56% Soybean

Oil 13%

Rapeseed Oil 6%

Sunflower Oil

10% Others

15%

2012

Palm Oil 55%

Soybean Oil

15%

Rapeseed Oil 5%

Sunflower Oil 7%

Others 18%

2010

NET IMPORTING AND EXPORTING COUNTRIES FOR OILS & FATS

(2012) REFLECTING REAL AVAILABILITY

-15,000 -10,000 -5,000 0 5,000 10,000 15,000 20,000 25,000 30,000 ('000 MT)

Net Exporters

Net Importers

Indonesia

Malaysia

Argentina

Brazil

Canada

Philippines Russia

India

EU-27

Ukraine

China

Pakistan

Bangladesh

Iran Mexico

Egypt

Nigeria

Japan

Turkey

South Africa

South Korea

Taiwan Other

North Africa

MARKET CHALLENGES FOR

PALM OIL

USA OILS AND FATS SUPPLY AND DEMAND

OUTLOOK

SUPPLY AND DEMAND OUTLOOK USA

US position as the biggest soybean producer in the world is set to be overtaken by Brazil.

Oils & fats production which recovered in 2012 is forecast to again drop by 390,000 MT in 2013 to 16.3 million MT

U.S. share of global soybean production is estimated to fall to 33.3% from 35% recorded last year.

Oils & fats export is forecast at 4.29 million MT contributed by soybean and corn oil which is 403,000 MT above 2012 figures. Surge in exports is motivated by delivery issues from South American counterparts.

USA BIOFUELS The Environmental Protection Agency announced

standards of 1.28 billion gallons for biomass-based diesel, 2.75 billion gallons for advanced biofuel and 16.55 billion gallons for renewable fuel for 2013.

Production for the first six months of 2013 tallied at 562 million gallons from a total of 873 million pounds of feedstocks used to produce biodiesel in June 2013.

Soybean oil was the largest biodiesel feedstock during June 2013 with 461 million pounds consumed. The next three largest biodiesel feedstocks during the period were corn oil (98 million pounds), yellow grease (93 million pounds), and tallow (54 million pounds).

BIODIESEL PRODUCTION – USA 2011 – 2013 (JUNE)

-

20

40

60

80

100

120

2011 2012 2013 (June)

U.S. INPUTS TO BIODIESEL PRODUCTION 2013(MILLION GALLONS)

Feedstock Inputs

Vegetable Oils Animal Fats

Canola Oil Corn Oil Palm Oil Soybean Oil Other Poultry Tallow

Jan

16

60

NDA 300

NDA 7

15

Feb

38

61

NDA 275

NDA 8

28

Mar

39

71

NDA 424

NDA 9

53

Apr

47

71

NDA 423

NDA 15

56

May NDA

91

NDA 416

NDA 20

61

Jun NDA

98

NDA 461

NDA 19

54

*NDA – No Data Available

Source : Oil World & MPOC Data

USA PALM OIL IMPORTS 2008 – 2013 (F)

USA OILS & FATS IMPORT AND EXPORT 2008 – 2013F

Source : Oil World & MPOC Data

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

2008 2009 2010 2011 2012 2013 (F)

Import Export

USA: OILS & FATS SUPPLY AND DEMAND SCENARIO

Source Oil World , MPOC Data & USDA Estimates

(‘000 T) 2008 2009 2010 2011 2012 2013F

Opening Stock

2,300

1,965

2,295

2,407

2,046

2,219

Production

16,405

16,033

16,088

16,033

16,701

16,310

Import

3,392

3,317

3,498

4,056

3,886

4,289

Export

3,351

3,367

4,030

3,159

2,943

2,991

Consumption

16,780

15,653

15,445

17,291

17,472

17,867

Ending Stock

1,965

2,295

2,407

2,046

2,219

1,960

Stock Usage Ratio 9.76% 12.07% 12.36% 10.00% 10.87% 9.39%

GLOBAL OILS AND FATS OUTLOOK

Land Use Type Total Area

(million ha)

As % of Area

Total Agricultural Land * 4267 100

Oil Seeds ** 233 4.69

Soyabean ** 92 1.85

Rapeseed ** 30 0.60

Sunflower ** 23 0.46

Oil Palm ** 11 0.22

Coconut ** 9 0.18

Other Oil Seeds ** 68 1.37

Malaysian Oil Palm 4.3 0.09

World Cultivated Area of Oil Seeds

***

4.7% of total land area planted with oil seeds &

0.22% of world agricultural land

Average Oil Yield (t/ha/year)

Sunflower 0.58

Rapeseed Oil 0.75

Oil Palm 4.13

Soybean

0.40

Oil Crop Production

(Mn/ T) % of Total

Production

Average Oil Yield

(t/ha/year)

Total Area (Mn/ ha)

% Area

Soybean 35.81 23.67 0.40 97.97 42.74 Sunflower 12.97 10.19 0.58 24.59 10.73 Rapeseed 21.34 16.77 0.75 31.32 13.66 Oil Palm 50.33* 37.99 4.13 12.18 5.31 TOTAL* 132.48 229.2

Note : * for palm oil and palm kernel oil

* for 7 major oils (groundnut, coconut, cottonseed and above oils)

Scarcity of land – Expansion vs Productivity

Higher PO

Yields – A

Solution to

Land

Scarcity

The FAO Food Price For 2012 as a whole, the Index averaged 212, 7.0 percent less than in 2011, with the sharpest declines registered by sugar(17.1 percent), dairy products (14.5 percent) and oils (10.7 percent). The 2012 price falls were much more modest for cereals (2.4 percent) and meat (1.1 percent).

Source: http://www.fao.org/worldfoodsituation/wfs-home/foodpricesindex/en/

The FAO Oils/Fats Price Index For 2012 as a whole, the index averaged 225, which compares with 252 in 2011. The main reason for the fall in December is the continued build-up of large global inventories of palm oil – as abundant production in Southeast Asia coincided with a protracted weakness of import demand.

World’s Fastest Growing Economies

World

Grain

Area

83.6% Area

of

Other

Oil

Crops

16.1%

World

Oil

Palm

Area

0.4%

1971

IN 2010, OIL PALM SHARE OF GRAIN AND OILSEEDS LAND AREA USAGE WAS TINY (ONLY 15 OUT OF 969 MILLION CULTIVATED HECTARES OR 1.55%), BUT SUPPLIED 75% OF GLOBAL NET EXPORT AVAILABILITY. SINCE 1971, PALM HAS ADDED 12 MILLION HA, COMPARED TO OTHER OIL CROPS WHICH INCREASED CULTIVATION AREA BY 114 MILLION HECTARES

World

Grain

Area

73.1%

Area of

Other

Oil

Crops

25.4%

World

Oil

Palm

Area

1.5%

2012

Oil palm is the most efficient, effective and highest yielding form of vegetable oil

production

(Source : Oil World)

PALM OIL PRICE DISCOUNT VS SOYBEAN OIL

(100)

(50)

-

50

100

150

200

250

300

0

200

400

600

800

1000

1200

1400

USD

/MT

USD

/MT

Palm Oil Price (USD/MT) Soybean Oil Price (USD/MT) Discount

WIDE DISCOUNT OVER SOYBEAN AND SUNFLOWER OIL

300

500

700

900

1,100

1,300

1,500

1,700

1,900

2,100 Ja

n-02

Jul-0

2

Jan-

03

Jul-0

3

Jan-

04

Jul-0

4

Jan-

05

Jul-0

5

Jan-

06

Jul-0

6

Jan-

07

Jul-0

7

Jan-

08

Jul-0

8

Jan-

09

Jul-0

9

Jan-

10

Jul-1

0

Jan-

11

Jul-1

1

Jan-

12

Jul-1

2

Jan-

13

Jul-1

3

Pric

e (U

S$/M

T)

CPO, Rott SBO, Rott

SFO, Rott

Source: Oil World

Oil palm is the most efficient, effective and highest yielding among all vegetable oils produced

109.69

34.58

25.52

14.18

41.76

24.44

14.83

53.44

0

20

40

60

80

100

120

Soybean Oil Rapeseed Oil Sunflower Oil Palm Oil

(Mill

ion

Ha/

Mill

ion

MT)

(Land Area - Million Ha) (Production - Million MT)

Source: Oil World, December 2012

MALAYSIAN PALM OIL EXPORTS 2008-2012

2008 2009 2010 2011 2012 (MT) 15,412,512 15,880,744 16,664,068 17,993,265 17,575,486

14,000,000

14,500,000

15,000,000

15,500,000

16,000,000

16,500,000

17,000,000

17,500,000

18,000,000

18,500,000

(MT)

Source: MPOB

MALAYSIAN PALM OIL MONTHLY PRODUCTION, EXPORT & ENDING STOCK (2011 -2013)

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

Jan

'201

1 Fe

b M

ar

Apr

May

Ju

n Ju

l Au

g Se

p O

ct

Nov

D

ec

Jan

'201

2 Fe

b M

ar

Apr

May

Ju

n Ju

l Au

g Se

p O

ct

Nov

D

ec

Jan

'201

3 Fe

b M

ar

Apr

May

Ju

n Ju

l

Stock Export Prod Source: MPOB

Source: MPOB

MONTHLY PRICES OF PO, SBO AND BRENT OIL

0

200

400

600

800

1,000

1,200

1,400

1,600

Jan

Mar

May

Ju

l

Sep

Nov

Jan

Mar

May

Ju

l

Sep

Nov

Jan

Mar

May

Ju

l

Sep

Nov

Jan

Mar

May

Ju

l

Sep

Nov

Jan

Mar

May

Ju

l

Sep

Nov

Jan

Mar

May

Ju

l

Sep

Nov

Jan

Mar

May

Ju

l

Sep

2007 2008 2009 2010 2011 2012 2013

US

D/T

on

ne

CPO vs SBO vs Brent Oil Prices

CPO Brent Oil SBO

ROLE OF MALAYSIAN PALM OIL

With long history in palm oil export,

Malaysia has the experience and capability in meeting the specifications on the products as required by potential buyers.

Malaysia also possesses long history of cultivation (> 100 years) with good agricultural and production practices. Hence, quality of MPO is assured.

PALM OIL ENVIRONMENT

AND HEALTH ISSUES

THE FACTS

At the time of European settlement in North America, primary (or virgin) forests covered nearly all of the East Coast.

By 1850, large portions of virgin forest had been cleared for agriculture, although substantial areas remained in the

South. Coastal Plain lands were the most densely populated, but Western areas of the region were largely unsettled, and

land in Florida and the Appalachians was difficult to clear and to farm.

After the Civil War, the era of industrial logging began in earnest. New railroads helped move heavy equipment and

transport cut logs to mills and markets, making logging profitable throughout the South. Between 1870 and 1920, the

South lost tens of millions of acres of virgin forest.

By the end of the twentieth century, virtually no substantial tracts of virgin forest remained in the South. Remnants can

be found in protected lands in parts of the Great Smoky Mountains and in southwestern Florida, but nearly all of the

South’s current forested area has been previously logged.

Spruce forest in the Appalachians of North Carolina: as a virgin

forest, left, and after logging, above.

Many virgin forest types were characterized, in part, by enormous old-growth trees that reached sizes rarely seen today.

In each photograph, the humans have been highlighted for scale. From left: old-growth yellow poplar in a cove hardwood

forest in North Carolina; baldcypress trees in a Florida swamp; virgin white pine-mixed hardwood forest in Virginia.

The industrial logging era, which dealt the final blow to most of the South’s virgin forest, was facilitated by

railroads, which themselves required vast quantities of lumber for crossties. Here, workers lay a logging

railroad through virgin longleaf pine forest in east Texas.

This railroad spur in Virginia was used to log and transport white cedar trees. Piled logs are

stacked along the railroad ready for shipping, while cutover land is visible behind them. Further

down the track, standing virgin white cedar awaits the loggers.

82 100*

167

147*

35.6 26.9

40.5 49

147

217

0

50

100

150

200

250

300

350

Forest

Palm Plantation

Palm Plantation

Forest

Total Co2

Removal by

LULUCF

249.8 Total Co2 Emission

223.1

Total Co2 Emission

292.9 Total Co2 Removal

by LULUCF

247

Emission by LULUCF +

Agriculture (Rice)

Sectors

Emission by Others

Emission by Energy

Sector

MALAYSIAN OIL PALM PLANTATION IS CARBON

SINK

Land Use, Land Use Change and Forestry (LULUCF) is made up of Forestry and (Oil Palm) Plantation Sector

* Trend Estimate

CO2

MT

2000 2007

Parameter Area or %

Area of oil palms 5.08 mil ha

Malaysia’s agricultural land area 6.89 mil ha

World’s harvested oil seed area 252.83 mil ha

World’s agricultural land area* 5,660 mil ha

% of oil palm area against Malaysia’s agricultural land area

73.7%

% of oil palm area against world’s harvested oil seed area

2.1 %

% of oil palm area against total world’s agricultural land area

0.09%

Malaysian oil palm’s contribution (inclusive of CPKO) to global oils & fats

production

11.3%

Sources: Malaysian Palm Oil Board (2012), Oil World (2012) and * World Bank

Malaysian Oil Palm is

Land Conservation-friendly

In Malaysia, for every

hectare of oil palm

there is 3.68ha of

forest permanently

protected for

conservation of

biodiversity and

wildlife. Malaysia

commits to conserve

minimum 50 %

permanent forest

Covers 6 areas of Code of Practice:-

Nurseries

Palm Oil Estates

Palm Oil Mills

Palm Kernels Crushers

Palm Oil Refineries

Handling & Storage of Palm Oil, Palm Kernel

Oil and their products

Guidance to enhance sustainability of

the Malaysian palm oil industry

Malaysian Palm Oil Board: Code of Practice

”Zero Waste” Industry

10% oil 90% biomass

1) Land Acquisition Act 1960

2) Land Conservation Act 1960 revised in 1989

3) National Land Code 1965

4) Protection of Wildlife Act 1972

5) Environmental Quality Act 1974 (Environmental Quality) (Prescribed Premises) (Crude Palm Oil) Regulation 1977

6) Environmental Quality (Clean Air) Regulation 1978

7) Labor Law

8) Workers’ Minimum Standard of Housing & Amenities Act 1990

9) Occupational Safety & Health Act 1977

10) Pesticides Act 1974 (Pesticides Registration) Rules 1988

11) Pesticides (Licensing for sale & storage) Rules 1988

12) Pesticides (Labeling) Regulations 1984

13) Environmental Quality (Prescribed Activities) (Environmental Impact Assessment) Order 1987

14) Factories & Machinery (Noise Exposure) Regulations 1989

Highly-regulated industry

Subject to more than 50 laws and regulations

Malaysian Palm Oil Wildlife Conservation Fund

• Launched in 2006

• US$ 6 mil (RM 20 mil): 50% from the Malaysian palm oil industry

& 50% from the Government • MPOWCF welcomes donations & grants

• Recently launched the Elephant Sanctuary of Sabah

Corporate Social Responsibilities

With all its positive attributes, the oil palm

industry is subjected to certifications. Efforts to

improve the certification system include

introducing the Malaysia Sustainable Palm Oil

Standards (MSPO) , to ensure no monopoly.

Level Playing Field for Palm Oil

RSPO

Source RSPO website

UPTAKE OF RSPO PALM OIL

0

10

20

30

40

50

60

2008 2009 2010 2011 2012 2013* (Jan –May)

%

•In spite of low volumes of RSPO oil available in world

market (15%), demand is only lukewarm (maximum uptake

never exceeding 52%) over the years

•Yet more demands made to produce more RSPO palm oil

RSPO OIL FETCHES VERY LOW PREMIUM

•Low price premium and low uptake of RSPO palm oil indicate poor

demand by consumers. Calls by prominent manufacturers ,some

mentioning that by 2015, they will buy only RSPO palm oil put

unnecessary pressure on growers. Certification cost can be as high as

USD 50/tonne according to Morgan Stanley study.

•High certification cost can hinder smallholders participation in

market.

Areas of Opportunities for Malaysian Palm Oil –

A MALAYSIAN PRODUCT INNOVATION

The practice of frying foods to increase palatability and increase

consumer appreciation is rated among the top 20 innovations in the

food industry

National Academy of Science, Royal Society, United Kingdom, Sept.

2012

Innovation comes in many forms and all shapes and sizes!

7

8

16

7

7

13

14

15

27

43

51

72

87

26

62

62

15

28

23

18

47

38

18

4

55

26

21

71

57

54

54

9

10

2

3

3.5

10

1

1

8

1

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Natreon Canola AOM 42

Natreon Sun AOM 53

Low lin Soy AOM 20

Low Lin canolca (C5) AOM 30

Canola AOM 18

Sunflower AOM 14

Com AOM 25

Soybean AOM 15

Cotton AOM 25

Lard AOM 25

Palm AOM 50

Sats Oleic 18:1 Linoleic 18:2 Linolenic 18:3

Fatty Acid Profile & Oxidative Stability

Source:

OXIDATIVE STABILITY OF OILS

0 hrs.

10 hrs. 0

102030405060708090

0 hrs. 10 hrs. 15 hrs. 20 hrs. 25 hrs. 30 hrs. 40 hrs. 45 hrs. 50 hrs.

Lard Soya bean Palm Olein

Time taken for Peak Peroxide

Development

PV

or O

2 u

pta

ke

An animal fat such as lard, despite low linoleic acid has limited frying capabilities. Palm olein is highly stable and a blend of olein with soybean oil may help provide better frying characteristics and consumer acceptance.

Oil hours FFA % Smoke point ˚C

Viscosity (CP)

Polymers % Foam Index *

Peanut Oil

0 0.02 235 50 0.2

82 0.28 229 102 12.6 10.2

Palm olein

0 0.03 222 49 0.4

82 0.32 182 72 6.3 9.4

Longer shelf life of fried food with no rancid or off flavors produced for longer period as compared to other oils. Fried Packaged Products: Minimum of 6 to 12 months shelf life, therefore can stay much longer on the shelf as compared to foods fried in other oils.

Palm Olein is Superior To Peanut Oil For Deep Frying

PALM OIL FRACTIONS WITH DIFFERENT IODINE VALUE RANGES FOR FOODS

Palm Oil

IV 51 - 53

Olein

IV 57 - 59

Super Olein

IV 64 - 66

Top Olein IV 70 - 72

Soft PMF

IV 42 - 48

Hard PMF IV 32 - 36

Hard Stearin

IV 32 - 36

Soft Stearin IV 40 - 42

Super Stearin

IV 17 - 21

Various tailor made fractions from palm are ideal for direct applications or

as blended products throughout the food and frying industries.

What Happens When A Population Is Exposed To Palm Oil As The Primary Dietary Fat Consumed Over 20 Years

Results from an on-going Collaborative Population

Study (Unpublished, 2013)

National University of Malaysia and MPOC

Sundram et al. 2013

SUBJECT CHARACTERISTICS

Subjects

characteristics

Females

(n=133) Males (n=73)

Mean ± SD Mean ± SD

Age (yr) 41.35 ± 12.31 39.70 ± 12.676

Weight (kg) 58.76 ± 10.59 68.70 ± 13.39

Height (cm) 156.32 ± 6.1 165.57± 20.0

BMI (kg/m2)

24.36 ± 5.08 24.17 ± 4.19

Waist Circumference

(cm) 79.4 ± 11.17 84.60 ±12.99

Body Fat (%) 32.89 ± 6.13 24.68±6.12

Sundram et al. 2013

% DISTRIBUTION AND USE OF

COOKING OIL IN DAILY DIET

Canola, 0.6 Corn, 3.6 Olive, 0.6

Palm,

81.7%

Rice Bran

Oil, 0.6 Sunflower, soya,

etc. , 13%

Canola

Corn

Olive

Palm

Rice Bran Oil

Sunflower

Sundram et al. 2013

LDL particle size is a crucial

determinant of CVD risk.

Small LDL particles are the most

atherogenic

How diet influences LDL size is an active

on-going research question, largely still

unexplored!

Lipoprotein Particle Size unit

Palm Oil

Group Other

PUFA Oils P value

Total LDL nmol/L 1131±374 1116±416 NS

Large LDL nmol/L 181±87 181±121 NS

Medium

LDL nmol/L 542±249 577±249 NS

Small LDL nmol/L 407±340 357±363 NS

Total HDL µmol/L 31±5 29±3 p=0.04

Small

HDL µmol/L 16±5 13±4 p=0.01

The long term (>20 years) consumption of palm oil has similar effects as PUFA oils on LDL particles but on HDL particles, palm oil has a beneficial outcome not seen with PUFA oils.

Sundram et al. 2013

r-value p-value

Total LDL 0.206 0.025

Large LDL 0.056 0.547

Medium LDL -0.171 0.062 Small LDL 0.314 0.001

CORRELATIONS: CARBOHYDRATE INTAKE AND LIPOPROTEIN PARTICLE SIZE

Sundram et al. 2013

In our regular diet, it is the carbohydrate content rather than fats that

trigger adverse outcomes for LDL particles and coronary heart disease.

Total LDL 0.053 NS

Large LDL -0.044 NS

Medium LDL -0.185 0.05

Small LDL 0.188 NS

CORRELATIONS: FAT INTAKE (PRIMARILY PALM OIL) AND LDL PARTICLE SIZE

Sundram et al. 2013

Fat consumption is the form of palm oil had no adverse outcomes on LDL

particles after >20 years consumption

CONCLUSIONS

CONCLUSIONS Malaysiapalm oil will be the source

of affordable, healthy and sustainable supply of oils & fats in the USA and the the rest of the world USA continues to rely on imported

palm oil to formulate trans free fats products and obtain triple benefits of improved saturates, less trans and better functionality

CONCLUSIONS Solution Provider: Consumers get

strategic solutions from palm oil: Sustainable supply, low carbon foot print, food security, trans-free, cholesterol reducing products and competitive prices