04 September, 2019
RALEIGH, North Carolina, September 4, 2019 - The global supply and consumption for palm oil is currently estimated to be 69.72 MMT and 65.04 MMT respectively, according to Beroe Inc., a procurement intelligence firm. The supply for palm oil is expected to increase by 4 percent compared to past years due to an expected increase in palm production.
Indonesia and Malaysia are the largest palm oil exporting countries holding almost 91 percent of global exports, while India is the largest palm oil importing country. The world’s consumption is expected to increase by 3.9 MMT to reach 68.4 MMT mainly due to an increase in demand from Indonesia, EU, China, and India.
Beroe, which is based in North Carolina, further stated that procurement experts can access this report on its recently launched market intelligence platform Beroe LiVE: live.beroeinc.com
An innovation in the palm oil industry is the production of palm-based mayonnaise. Soft oils such as palm oil are commonly used as salad oil in mayonnaise production. Palm olein, the liquid fraction of palm oil can be fractionated into oils with different iodine values. The normal palm olein (IV 56-58) is used for frying and is not suitable for mayonnaise or salad dressing as the end-product hardens during storage at refrigeration temperature. Higher IV (60-67) palm oleins are suitable both as a salad oil or for making salad dressing.
Based on Porter’s Five Forces analysis, the palm oil suppliers have high power to influence the prices as they are large integrated players such as KLK, IOI, etc. There is no product differentiation and the industry operates on economies of scale, the barriers to new participants, and the intensity of a rivalry is medium to high.
The research methodology adopted for the report included:
The Indonesian palm oil prices are expected to decrease by almost 4.5 percent by the end of 2019. High export demand with the revival in the palm supplies due to expected El-Nino conditions is expected to be the key price driver in the palm oil industry. However, the Malaysian crude palm oil prices are at an increasing trend even during the harvest months due to the affordable palm oil stocks.
The report also includes:
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