Global Palm Oil Market Report: 2013 Edition-Koncept Analytics

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Global Palm Oil Market Report ------------------------------------------------2013

View Report Details Executive Summary As one of the most traded vegetable oils, the significance of palm oil to the global economy is gaining momentum. Palm oil is extracted from the fruit of oil palm tree (Elaeis guineensis) and its main products include crude palm oil (CPO) and palm kernel oil (PKO). Palm oil is the world’s highest yielding oil crop, with an output 5–10 times greater per hectare than other leading vegetable oils. Combined with factors such as low priced, relative shelf stability, and nutritional benefits, palm oil will remain an important commodity of global diet. Palm oil is majorly used in food as cooking oil, in oleochemicals industry for manufacturing soaps, cosmetics, detergents, lubricants and glues and also as a raw material for biodiesel.

Indonesia and Malaysia are the leading producers of palm oil accounting for 87% of world production in 2011/12. Rapidly expanding population and changing consumption patterns, as well as increasing demand from the bioenergy and oleochemicals industries, have resulted in increased consumption of palm oil. In most regions like the EU, the US, and Brazil, biodiesel mandates have been tightened and has thus increased the usage of biofuels. Major importing countries of palm oil include India, China, EU-27 and Pakistan. The prices of CPO had been fluctuating over the past year due to Euro-zone debt crisis and stockpiling in Malaysia. Recently the Malaysian Government had reduced CPO export tax in order to compete with top producer, Indonesia and clear excess stock. Due to challenges such as limited land availability, labour problems and environmental issues, the focus has now shifted to yield growth and creating a sustainable and traceable value chain. Emergence of certified sustainable palm oil (CSPO) or green palm oil has attracted many multinationals and buyers.

The report analyzes the global palm oil industry, its production, consumption, imports and exports. It extensively covers the palm oil market in the two major producing regions, Malaysia and Indonesia; as well as the two major consuming regions, India and China. The report discusses the major drivers and key issues related to the palm oil industry. The four major players in the palm oil industry include Wilmar International, Sime Darby, IOI International, and PT Astra Agro. All these players have been profiled in the report, along with their financials and strategies for growth.

By combining SPSS Inc.’s data integration and analysis capabilities with our relevant findings, we have predicted the future growth of the industry.

We employed various significant variables that have an impact on this industry and created regression models with SPSS Base to determine the future direction of the industry. Before deploying the regression model, the relationship between several independent or predictor variables and the dependent variable was analyzed using standard SPSS output, including charts, tables and tests.

Changing Consumption Pattern and Increasing Demand From Bio-Energy Industry Have Resulted In Rise of Palm Oil Consumption Global Palm Oil Production (2008/09 - 2012/13E)

 Worldwide production of palm oil increased by ….% y-o-y and reached ……. million MT (Metric Tonnes) in 2011/12. Palm oil is the world’s highest yielding oil crop, with an output …… times greater per hectare than other leading vegetable oils.

Million MT

 Global consumption of palm oil increased from ….. million MT in 2010/11 to ….. million MT in 2011/12 and is estimated to grow to ….. million MT by 2012/13. There is a growing demand of palm oil for its use in bio-diesel and electricity production.  Oil palm is cultivated on approximately ….. million hectares across the world. Around ……% of cultivated land lies in Indonesia and Malaysia.

2008/09

2009/10

2010/11

Production

2011/12

2012/13E

 In the year 2011/12, total yield for palm was at …….MT per hectare.

Consumption

Global Palm Oil Production – Volume Share by Country (2011/12)

Million MT

Top Ten Palm Oil Consuming Countries (2011/12)

Indonesia

Malaysia

Thailand

Colombia

Nigeria

Other

Indonesia And Malaysia are the Leading Producers of Palm Oil accounting for 87% of World Production in 2011 Production of Other Oil Palm Products in Malaysia (2008-2012)

 Indonesia is the largest palm oil producer accounting for …..% of global production in 2011. The average annual rate of plantation area increased from ….. million hectares in 2010 to ….. million hectares in 2011.

Million MT

 In Malaysia, the oil palm planted area in 2012 reached ….. million hectares, an increase of …..% against …. million hectares recorded in 2011.  Production of palm kernel in Malaysia almost remained flat at ….. million MT in 2012 compared to previous year. Production of crude palm kernel oil increased from ….. million MT in 2011 to …. million MT in 2012. Palm kernel cake production increased by …..% in 2012 compared to 2011.

2008

2009

Palm Kernel

2010

Crude Palm Kernel Oil

2011

2012

 The FFB yield in Malaysia increased to ….. tonnes per year in 2012 compared to …… tonnes per year in 2011.

Palm Kernel Cake

Malaysia- Export of Palm Oil by Selected Countries (2012)

Million Hectares

Indonesia- Mature Area Harvested Under Palm Oil (2008-2011)

China

India

EU

Pakistan

USA

Singapore

Japan

Others

2008

2009

2010

2011

Properties such as Nutritional Benefits, Low Priced, Rising demand from BioEnergy Sector will Drive Consumption of Palm Oil……

Million MT

Worldwide Palm Oil Consumption Forecast by Volume (2011/12 – 2015/16F)

2011/12

2012/13F

2013/14F

2014/15F

2015/16F

•

Worldwide consumption of palm oil is forecasted to increase from ….. million MT in 2011/12 to ………million MT by 2015/16. Palm oil is not only highly diverse in its usage, but it is also a globally-grown crop that holds much economic importance to multiple emerging markets.

•

Palm oil will significantly increase its market share in world’s oils and fats sector over the coming years, driven by population growth, per capita income and the fact that palm oil has a ……..times greater yield per hectare than other vegetable crops, making it a more attractive crop to cultivate.

•

Increased dependence of palm oil in developing countries like India and China mainly for food consumption will certainly boost demand for palm oil. Traditionally used in manufactured food products, it is an increasingly important ingredient in cosmetic/health products, and is now found in >….% of packaged supermarket products. There is a growing demand for its use in bio-diesel and electricity production.

View Report Details Table of Contents 1. Global Vegetable Oil Market 1.1 Production and Consumption 1.2 Share by Types 1.3 Import and Export Trend 2. Palm oil Market 2.1 Introduction 2.2 Palm Oil – Supply chain Analysis 2.3 Production 2.4 Consumption 2.5 Area Harvested and Yield 2.6 Import & Export 3. Major Palm Oil Producing Countries 3.1 Indonesia -Production Growth -Consumption Growth -Exports -Area Harvested -Plantation Ownership 3.2 Malaysia -Production Growth -Production by State -Exports -Area Harvested -Plantation Ownership

List of Graphs & Tables List of Charts Vegetable Oil Production and Consumption Trend Worldwide (2008/092012/13E) Top Producers of Vegetable Oil by Countries (2011/12) Top Consumers of Vegetable Oil by Countries (2011/12) Global Vegetable Oil Production – Volume Share by Type of Oil (2011/12) Global Vegetable Oil Consumption – Volume Share by Type of Oil (2011/12) Worldwide Vegetable Oil Import and Export Trend (2008/09 to 2012/13E) Palm Oil Mill Process: Residue Utilization Production Process of Fresh Fruit Bunches (FFB) Crude Palm Oil Production Process Global Palm Oil Production (2008/09 to 2012/13E) Global Palm Oil Production – Volume Share by Country (2011/12) Global Palm Oil Consumption (2008/09 to 2012/13E) Top Ten Palm Oil Consuming Countries – Volume Share (2011/12) Worldwide Total Area Harvested for Palm (2008-2011) Worldwide Total Yield for Palm (2008-2011) Indonesia- Total Mature Area Harvested Under Palm Oil (2008-2011) Production and Consumption of Palm Oil in Indonesia (2008/09 to 2012/13F) Palm Oil Yield in Indonesia (2008-2011) Indonesian Oil Palm Plantation by Ownership (2012E) Total Export of Palm Oil from Indonesia (2008/09-2011/12) Oil Palm Planted Area in Malaysia (2005-2011) Production of Crude Palm Oil in Malaysia (2005-2012) Production of Other Oil Palm Products in Malaysia (2008-2012) Malaysia- Export of Palm Oil by Selected Countries (2012) Malaysian Local Delivered Palm Oil Prices (2009-2010) India- Domestic Consumption of Palm Oil (2008/09-2011/12) India: Consumption Share of Edible Oils (2011/12) Import of Edible Oils to India by type (2011/12) Import Volume of Palm Oil to India (2011/12)

View Report Details Table of Contents 4. Major Palm Oil Consuming Countries 4.1 India -Consumption Growth -Imports -Price Trend 4.2 China -Consumption Growth -Imports 5. Market Drivers 5.1 Rise in Demand of Biofuels 5.2 Highly Productive Compared to Other vegetable Oils 5.3 Favorable Government Legislations 5.4 Demand for Certified Sustainable Palm Oil (CSPO) 5.5 Increasing Population 5.6 Cost Effective Among all Vegetable Oils 6. Challenges 6.1 Decreasing Land Availability 6.2 Oil Palm Monoculture and Environmental Risks 6.3 Continuous Stockpiling 6.4 Stringent Inspection on Shipments 7. Competitive Landscape

8. Company Profiles 8.1 Wilmar International Limited 8.1.1 Business Description 8.1.2 Financial Overview 8.1.3 Business Strategies -Expansion through Partnerships -Investment in Processing Capacity

List of Graphs & Tables List of Charts Price Movement of CPO in India (Dec 2011 to Dec 2012) China: Consumption of Palm Oil (2008/09-2011/12) Import of Palm Oil to China by Volume (2008/09-2011/12) China- Palm Import as a % of Total Oil & Fats Import (2007-2012) Total Palm Oil Imports from Malaysia to China (2005-2012) World Biofuels Production (2005-2011) Oil Yield (in tonnes) Oils per Hectare (2011) Global Planted Area for Vegetable Oils – Share by Type of Oil (2011) Global Vegetable Oil Production Share by Types of Oils (2011) CSPO Market Uptake per Year (2008-2012) CSPO Annual Production Capacity Worldwide (2008-2012) CSPO Total Production Area (2008-2012) Global Population Growth (1960-2050E) Per Capita Consumption of Palm Oil in Major Countries (2011) Comparison of Major Vegetable Oil Prices (Jan 2012- Jan 2013) Monthly Closing Stock of Palm Oil in Malaysia (Jan 2012 –Jan 2013) Major Players in Global Palm Oil Industry by Market Capitalization (2011) Wilmar International Revenue (FY07-FY11) PT Astra Agro Lestari Revenue Break-up by Business Segments (2011) PT Astra Agro Lestari Revenue (2007-2011) IOI Corporation Berhad Business Segmentation (2012) Net Revenue of IOI Corporation Berhad (2008-2012) Sime Darby- Contribution to Revenue by Business Segments (2012) Sime Darby Revenues from Plantation Division (2008-2012) Worldwide Palm Oil Consumption Forecast by Volume (MY12-MY16F)

View Report Details Table of Contents 8.2 PT Astra Agro Lestari Tbk 8.2.1 Business Description 8.2.2 Financial Overview 8.2.3 Business Strategies -Increasing Production Capacity -Intensification Programmes 8.3 IOI Corporation Berhad 8.3.1 Business Description 8.3.2 Financial Overview 8.3.3 Business Strategies -Efforts to Ensure High Yield -Sustainable Growth with New Refineries 8.4 Sime Darby 8.4.1 Business Description 8.4.2 Financial Overview 8.4.3 Business Strategies -Expansion into Related Businesses -Expansion through Capital Investment 9. Market Outlook 9.1 Market Forecast

9.2 Forecast Methodology 9.2.1 Dependent and Independent Variables 9.2.2 Correlation Analysis 9.2.3 Regression Analysis

List of Graphs & Tables List of Tables Top Countries by Import and Export of Vegetable Oil (2011/12) Palm Oil Imports-by Country (2008/09 to 2011/12) Palm Oil Exports by Country (2008/09 to 2011/12) Malaysia - Oil Palm Planted Area by States as At June 2012 Malaysia - Oil Palm Planted Area by Category as at June 2012 FFB (Fresh Fruit Bunches) Yield in Malaysia-by States (2009-2012) Crude Palm Oil Yield in Malaysia-by States (2008-2012) Malaysia- Volume of Palm Oil Exported by Types (2007-2012) Export Duty Rate of CPO in Malaysia (Effective from January 2013) Number of Refineries Approved and Capacities – Malaysia (2012) Import Duty on major Edible Oil in India w.e.f February 2013 Selected Biofuel Mandates by Country Wilmar International Revenue Breakup by Business Segments (FY10 vs FY11) Dependent & Independent Variables (2006/07 – 2011/12) Correlation Matrix Model Summary – Coefficient of Determination Regression Coefficients Output

View Report Contact Us:Details These are abridged and sanitized sample pages from the comprehensive report on the “Global Palm Oil Market”. To know more about this report or for any customized research requirement, please contact the following:

Koncept Analytics

Vikas Gupta BD Manager

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