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Growing Opportunities for Malaysian Palm Oil in China Bakery Market
1.0 Introduction China’s bakery industry has a relatively short development history, and bakery products are mainly used as desserts and snacks in China. Hence, there is still a large consumption gap between China and other countries such as Europe and the U...
China’s Palm Oil Market Outlook 2022
China’s import of palm oil in the first quarter of 2022 fell sharply by 65.7%, or 971,800 MT to 506,900 MT from 1,478,700 MT in the same period last year. Major factors which contributed to the decline in imports included Indonesia’s policies to curb domestic palm oil price hikes and the tight glob...
Change in Composition of Palm Oil Products Imported by China
Introduction According to statistics released by Chinese Customs, China’s import of palm oil in 2021 recorded a marginal drop of 1.3% or 84,400 MT against the previous year. The drop didn’t come as a surprise despite the Y-o-Y growth of 23.6% recorded in the first 6 months of 2021,...
China’s cosmetic and personal care market – Growth sector for palm-based ingredients
China is the second-largest cosmetic and personal care market in the world after the United States in terms of market value. The market size for China’s cosmetics and personal care industry has been steadily expanding particularly for skincare and cosmetics products. This is primarily driven by the ...
Soybean Imports Trend and in China and its Impact on Palm Oil
Introduction The Y-o-Y growth of soybean import in China has moved from positive to negative in 2021, as the Jan-Oct period import of soybean dropped by 4.9% against the positive growth of 8.7% recorded in 1H2021 (Tables 1 & 2). This is a surprising development as it was widely anticipated...
Soybean Imports Trend and in China and its Impact on Palm Oil
Introduction The Y-o-Y growth of soybean import in China has moved from positive to negative in 2021, as the Jan-Oct period import of soybean dropped by 4.9% against the positive growth of 8.7% recorded in 1H2021 (Tables 1 & 2). This is a surprising development as it was widely anticipated...
Positive Outlook Remains for Palm Oil in China Despite the Recovery of Swine Sector
Review of China’s economy in 2021 China’s unrelenting efforts to tackle COVID have resulted in a significant increase in the country’s GDP growth for 2021. Although the COVID pandemic are still posing threats, economic activities has picked up after the country exited from a full lockdown since the ...
China’s Palm Oil Market Outlook 2021
China is one of the world’s largest importer of palm oil, however, its year-on-year palm oil import is highly dependent on local soybean crushing activities. Higher soybean crushing leads to more soybean oil produced. The resultant increase in locally produced soybean oil reduces the spread between ...
Latest Policy Change on Soybean Meal Use in Animal Feed in China May Improve Palm Oil Demand
1. Development of China’s Animal Feed Industry The development of China’s animal feed industry started in the 1970s, and by 2011, its output surpassed the United States and ranked first in the world, accounting for about 17% global animal feed production. In 2020, the animal feed produc...
Malaysian Palm Cooking Oil Consortium: The Possible Way Out for Malaysia to Penetrate China’s Cooking Oil Market
Introduction Palm oil has been used mainly in food applications in the Chinese market, be it for food processing, bakeries or as cooking oil. The total consumption of palm oil among these industries accounts for approximately 70% of the total palm oil consumption in China. Nevertheless, most o...
Palm-Based Cooking Oil – Overcoming Barriers in China’s Household Sector
1. Introduction China‘s household market is one of the major consumers segment of palm oil in the country. In terms of volume consumed, it ranks second behind instant noodles (Refer to figure 1). Based on industrial experts feedbacks and MPOC estimates, China’s household sector accounts for 28% of t...
China’s Palm Oil Market – Opportunities for Malaysian Palm Oil
Palm oil is among the major edible oils and fats consumed in China. In 2020, palm oil market share registered 17.0% in China’s total oils and fats consumption. It ranked second behind soybean oil which accounted for 42.0% of China’s oils and fats consumption. In China’s palm oil market, there are 2 ...
China’s Growing Bakery Sector – Opportunities For Palm Based Fats
China’s population stood at 1.4 billion in 2020. With the large population size demand for bakery products is huge. In 2020, China consumed close to USD50 billion worth of bakery products. There is potential for the consumption of bakery products to grow attributed to the country’s rising middle cla...
Current Status and Development Trends of Animal Feed Industry in China
Overview of Global Animal Feed Industry As the population grows and life quality improves, meat consumption has been witnessing a steady increase. The global animal feed production is also expected to continue to maintain the upward trend to cater to the demand. Growing concerns for healthy foods am...
Effects of Trade War and Trade Spats on Palm Oil Exports
Background Trade war and spats are high stake game which affects trade between the countries involved as well as their trading partners. The existing US-China trade war, China-Canada trade spat, India Malaysia trade spat and the new EU Delegated Act which imposes a trade restriction on palm oil expo...
Overview of the Global Palm Oil Sector in 2020 and Outlook for 2021
Over the years, the global production of oils and fats has risen steadily. Out of 17 oils and fats cultivated in the world, only 4 oils have a significant share in the production oils and fats which are palm oil, soybean oil, rapeseed oil and sunflower oil. These four major oils contributed about 76...
China’s Vegetable Oil Outlook and Palm Oil Situation
The rapid development of China’s economy and its implication on people’s living standards has been a catalyst in the growing consumption of edible vegetable oils. According to the China Bureau of Statistics, the per capita edible vegetable oil consumption has increased from 7.7 kg in 1996 to 9.8 kg ...
Outlook for Malaysian Palm Oil Exports to Asia Pacific Region (excluding China) in 2020
The Asia Pacific is one of the vibrant economic regions in the world. In 2019, the total GDP value of Asia Pacific was USD 11.55 trillion which is contributed about 13.2% to the global GDP value. The Asia Pacific includes several emerging countries like Indonesia, Malaysia, the Philippines, South Ko...
Malaysia’s Palm Oil Exports To China For 4th Quarter 2020 Is Anticipated To Remain At 2019’s Level
China is one of the biggest markets for palm oil in the world. In 2020, 3 main issues are affecting the palm oil trade in China. Firstly, there is a surge in soybean imports as the hog industry recovers from the African Swine Fever (ASF) outbreak. This recovery encourages more soybean crushing...
China Leads the Global Instant Noodle Consumption
Instant noodles also known as instant ramen are pre-cooked noodles sold in a dried block with seasoning powder packed separately. The instant popularity of instant noodles is due to its quick preparation time. The noodle became ready to eat just in two minutes by adding boil...
Rapeseed Situation in China and Its effect on Palm Oil Import
The most populous nation in the world has an exquisite cuisine taste that is loved by many regardless of geographical identity. One of the major oilseed crops in China, the rapeseed or locally known as yóucài has a deep impact on Chinese culinary arts due to its mild taste, high smoking point, and r...
Oil Palm Expansion Programme: Will India Achieve Its Target to Reduce Import Dependency?
The global oils and fats consumption has grown at a compounding annual growth rate of 3.8% for the past 10 years, which led to oils and fats requirements of 237.56 million MT in 2019. Limited land and growing needs for other agricultural crops have resulted in inadequate production of oilseeds which...
The Impact of President Xi’s Call to Stop Food Wasting on Palm Oil Demand
Call from President Xi to stop food wasting On 11 August 2020, China’s President Mr. Xi Jinping made important instructions to curb the situation of food wasting. He pointed out that the phenomenon of food wasting is shocking and heart-breaking! He also quoted from a Chinese poem which says “Every g...
Malaysia’s Palm Oil is Gaining Market Share in China In 2020
Introduction COVID-19 pandemic has severely impacted China’s GDP growth. China has reported that the country’s GDP contracted by 6.8% in the first quarter of 2020 before recovering marginally to 3.2% growth in the second quarter of 2020 after the country underwent practically a shutdown of the econo...
A Look at India Palm Oil Import Trend – What to Expect Post Pandemic
The pandemic has caused major upheavals to the economy of India, as it has done globally. The country began a nationwide lockdown in late March, and the first phase which continued until May, forcing businesses to come to a halt. The food and HORECA sectors are among those greatly affected resulting...
China: WTO Accession and ASEAN-CHINA Free Trade Agreement
Introduction China has undertaken various measures in the past to strengthen its economy. A major expansion of China’s global economic influence happened in 2001 when China took its first initiative to liberalize its traditional economy and become a member of the World Trade Organisation (WTO)...
Impact of Sustainability in China’s Palm oil Trade
China’s domestic consumption of palm oil has reached 7.2 million MT in 2019, which is approximately 9.5% of the total global production of palm oil. The imports and consumption of palm oil recorded a significant growth of 33% in 2019 (increasing from 5.4 million MT in 2018 to 7.2 million MT in 2019)...
China Palm Oil Market – Improving Malaysia’s Market Share
Introduction China’s palm oil imports have increased by almost 10 folds from 830,000 MT in 1992 to 7.6 million MT in 2019. During the same period, Malaysia’s exports also have grown 5 fold from 550,830 MT in 1992 to 2.49 million MT in 2019. Despite a significant increase in the volume of Malaysian p...
Tight Soybean End Stock to Boost Soybean Prices
USDA estimated the 2020/21 US soybean ending stock to come in at 11.02 million MT, lower by 730,000 MT than its earlier estimate of 11.75 million MT. For the past three years, ending stock were pegged at 15.79 million MT in the marketing year of 2019/20, 24.74 million MT (2018/19) and 11.92 million ...
Palm Oil Demand Scenario in China post COVID-19
China’s economy started picking its pace but not the demand for palm oil. The total import of palm oil (PO), rapeseed oil (RSO) and soybean oil (SBO) in Jan-Mar 2020 were 2.49 million MT, decreased by 7.34% as compared to the same period last year, where drop-in PO was the main factor contributing t...
Sunflower Oil Gaining Popularity among Chinese Consumer
Introduction In 2019, sunflower oil import in China increased significantly by 74.8% to 1.23 million MT, overtaking soybean oil as the 3rd highest imported oil in the same year, which saw the consumption of sunflower oil surging to 1.36 million MT. Although this volume is insignificant compared to o...
Emerging Markets: Growth Segment for Palm Oil Within China
Edible oil consumption in China has been increasing consistently in the last decade due to the accelerating urbanization and improved living condition. Oils and fats consumption also grew from 32.2 million MT in 2010 to 39.7 million MT in 2019. Per capita consumption of oils and fats rose from...
Would there be an Impulsive Consumption after the Covid-19 Lockdown is Lifted in China
End of Lockdown With the lockdown in Wuhan lifted on 8 Apr, China could be considered a country where covid-19 outbreak is official under controlled. At the same time, recognizing the need to bring the economy back on track immediately, the country’s policymakers from central to local governme...
China’s Hog Production Growth – A Post-ASF Update
The African Swine Fever (ASF) epidemic, a viral disease that affects only pigs caused a series of changes in China’s live hog market. China Daily reported that, the viral disease caused the price of live hogs to reach a historical high of nearly RMB40 per kilogram in the third quarter of 2019 ...
China’s Cooking Oil Consumption Likely to Increase in 2020
The Chinese National Bureau of Statistics reported that in January – February 2020, the country’s retail sales fell by 20.5% or 1.3 billion yuan to 5.2 billion yuan compared to the same period last year. However, in the same period, the category of food products has registered a growth of 9.7% and t...
Would China gain from the excess CPO due to lower biodiesel mandate in producing countries?
For China, RBD Palm Olein (RBD PL) and RBD Palm Stearin (RBD PS) are the 2 major palm fractions predominantly imported by the country due to the applicable import duty structure. Both products have an estimated basic demand of 3.5-4.0 million MT and 1.5-1.7 million MT per annum respectively. Neverth...
China’s Palm Oil Import – Q1 Performance and Q2 Outlook
China is among the largest importers of palm oil in the world and has a major influence on the supply and demand dynamics of this commodity . The official data from Chinese Customs in table 1 illustrates that China has decreased its overall palm oil import from 1,171,500MT to 882,200MT in Jan-Feb 20...
China’s oleochemical market brace for higher demand amid disruption in supply chain and COVID-19
COVID-19 containment in China resulted in panic buying among Chinese especially for personal care, detergent and sanitation products. Amidst a full lockdown or partial lockdown of oleochemical producing companies, the COVID-19 panic buying scenario created a strong demand for oleochemical manufactur...
Recovery in China’s Soybean Crushing Activities Poses Threat to Malaysian Palm Oil Imports in China
The weekly crushing volume of soybeans in China had surged in mid-February after a sharp fall in the early part of the month. Soymeal price rose from RMB2,896/MT on 31 December 2019 to RMB3,253/MT on 31st March 2020 (April 1, 2020, Sunsirs Commodity Data Group). JC Intelligence Shanghai estimated th...
Lower Oilseed Stocks in China Support Margin and Triggered Import & Crushing
As reported by Oil World, the significant oilseeds import volume in Oct/Feb 2020 was meant to replenish the dwindling oilseeds stock in the country towards the end of last year (Table 1), as the US-China trade dispute and China-Canada diplomatic tension both affected the supplies of soybean and rape...
China’s Reviving Economy and The Demand of The Palm Oil
China has managed to arrest and contain the spread of the COVID-19 pandemic outbreak in a very effective manner. The is evident from reports by the Chinese authorities the shape of the pandemic and the small number of cases reported outside Hubei and is also a testimony to the success and the effect...
China Soybean Crushing Capacity Moving Up North
Last year, due to the African Swine Fever (ASF) outbreak, crushing activities, especially soybean crushing, had experienced a negative growth for the first time in history. In general, China’s soybean crushing capacity has been growing rapidly since the late 1990s as a result of various policies imp...
China Soybean Outlook after Inking the Phase-1 Trade Agreement with US
China – US trade phase one trade deal with China was signed and came into effect from February 15, 2020. Under this agreement, China has agreed to purchase an additional US$12.5 billion worth of US agricultural products in 2020, and US$19.5 billion more in 2021. Following the signing, China is accep...
