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2010 Year End Prospects - What Lies Ahead?:
China's Oils and Fats Market: Issues and Opportunities for Palm Oil
Mr. Teah Yau Kun
Regional Manager of China; MPOC
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The report indicates that the healthy economic trend provides a better environment for oils & fats industry. China's economy registered a double-digit growth rate in the first half of the year, up 11.1 percent from a year earlier, according to preliminary statistics released by National Bureau of Statistics (NBS).

It analyzes the supply and demand of the oils and fats market in China. The edible oil consumption in China has been increasing due to the accelerating urbanization and improved living condition with the result of its economic boom, leading to the surging vegetable oils imports by the country. Recently, China is the largest vegetable oil importers across the world. Three major oils, that is soybean oil, palm oil and rapeseed oil, top the list of import volume, accounting for 18% of the world’s trade volume. China’s palm oil consumption account for over 15% of the world’s total and palm oil products are the favorite category with the growing domestic demands. About 80% of total palm oil was consumed in food sector, including cooking oil, instant noodles, bakery, confectionery, chocolate, ice cream sectors, etc. in 2009. Palm products, on the other hand, have a sound performance in non-food sectors, such as animal husbandry, oleochemicals sectors, etc.

The paper demonstrates that in order to seize the opportunities and meet the challenges, we should make every effort to consolidate and expand the existing markets and to explore the new fields.
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