Palm oil, 3 others account for 89% of global vegetable oils production – BRIU report
Palm oil, soybean, rapeseed and sunflower vegetable oils account for 89 percent of the global vegetable oils production. Vegetable oils in this sense refer to edible oil used in domestic and industrial centres extracted from palm fruits as palm oil as well as soybean oil, rapeseed oil, sunflower oil and coconut oil. Others are olive oil, peanut oil, palm kernel oil and cottonseed oil.
Palm oil, being the world’s most consumed vegetable oil, accounts for 34 percent of the vegetable oils consumed in households and industrial complexes across the globe, a report by BusinessDay Research and Intelligence Unit (BRIU) has shown.
Soybean oil accounts for 30 percent just as rapeseed and sunflower oils account for 15 percent and 10 percent of the global vegetable oils production respectively, and that brings the share of the four mostly consumed vegetable oils to 89 percent relative to total vegetable oils produced globally.
With data sourced from Statista, Indexmundi, National Bureau of Statistics (NBS), pre-shipment inspection documents, FEDOIL, CBI Ministry of Foreign Affairs, Food and Agriculture Organisation (FAO), Standard Organisation of Nigeria (SON), USDA Foreign Agricultural Service and Hort Zone, production of vegetable oils grew by 12 percent from 158 million metric tonnes in 2011/2012 farming season to 177 million metric tonnes in 2016/2017 farming season.
The report also shows where every country involved in the production of vegetable oils has an edge over their competitors. For Indonesia, 80 percent of its vegetable oils come from palm oil, which amount to about 36 million metric tonnes annually. Other sources include soybean and coconuts oils.
Cargill, Wilmar International and PT Salim Ivomas Pratama TbK, when ranked by revenue are the three biggest vegetable oil producers in Indonesia.
In 2016, Cargill cultivated 41,000 hectares, employed 190,000 workers just as it realised $110 billion as revenue.
Wilmar International cultivated 157,562 hectares and realised $41 billion as revenue while PT Salim Ivomas Pratama TbK cultivated 246,055 hectares and ended the 2016 financial year with $14.5 billion in its coffers as revenue, data from Indonesian Agric Ministry and Bizvibe Blog has revealed.
Malaysia accounts for 39 percent of the global vegetable oil production and 44 percent of the world’s vegetable oils exports. A total of 4.49 million hectares of oil palm plantations are presently under cultivation in Malaysia.
The country produces about 17.7 million metric tonnes of palm oil and 2.13 million metric tonnes of palm kernel oil. In 2017, total earnings from the export of vegetable oils amounted to $19.18 billion.
The three biggest vegetable oil producers in Malaysia are Sime Darby Berhad, IOI Corporation and Kuala Lumpur Kepong.
Sime Darby Berhad cultivates 1 million hectares of land and in 2016, realised $11.2 billion as revenue. Its plantations are in Malaysia, Indonesia, Liberia, Papua New Guinea and Solomon Island.
IOI Corporation cultivates 218,000 hectares of land and made $3 billion as revenue in 2016. However, Kuala Lumpur Kepong cultivates 270,000 hectares and made $4.22 billion as revenue in 2016.
China, with 16.8 million metric tonnes, stands as the largest producer of soybeans oil globally. It is also the second largest producer of rapeseed and cottonseed oils; sixth largest producer of sunflower oil and the largest producer of peanut oil globally.
For domestic uses, India tops the chart of countries that use palm oil the most globally with annual usage about 9.8 million metric tonnes. It is followed by Indonesia, the European Union, China and Malaysia. On the other hand, the European Union tops the chart of countries that use palm oil the most for industrial purposes. The bloc is followed by Indonesia, Malaysia, China and Thailand.
Furthermore, China is the largest user of soybean oil for domestic purposes as it consumes about 17.4 million metric tonnes annually. It is followed by United States, Brazil, India and Argentina.
For industrial purposes, United States ranks as number one followed by Brazil, Argentina and the European Union.
Interestingly, Nigerian Flour Mills and PZ Cussons have started to compete in the international vegetable oils market. “From Flour Mills group’s revenue, N510.7 billion was made from customers in Nigeria while N13.78 billion was realised as export revenue in 2017. Cyprus is one of the major export destinations” the BRIU report shows.
On the other hand, “PZ realised N75.02 billion, or 94 percent of its gross sales domestically while N4.61 billion sales was recorded overseas in 2017,” the report states. PZ is in partnership with Wilmar International Limited, Indonesian second largest vegetable oil producer by revenue.
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