Palm Downstream Tribune Vol 2 No 2 June - Aug 2024

Page 1


Palm oil consumption eliminates dandruff, prevents cancer, relieves pain: Nutritionists

MPOB calls for setting up of oil hub, redistribution center in Egypt

Johor Port launches FGV Palm Industries’ inaugural export of certified palm kernel shells to Japan

Editor-In-Chief

New drop-off point for cooking oil

Editor Assistant

Nur Zahidah Zahidi

Graphic Designer

Muhammad Faireez

Marketing Director Emily Yu

Publication

Maps & Globe Specialist (Singapore) Pte. Ltd. 1 Godhill Plaza #03-39 Podium Block, Singapore 308899.

Overseas Office

Malaysia & Indonesia

Kelly Yew Print

A&K Printing

P600-million palm oil project starts rolling

China’s Approval of Palm Tocotrienol (vitamin E) Product Registration: A Significant Milestone for Malaysian Palm Oil Industry

Palm oil by-product transforms into PVC thermal stabilizer with possibilities for recycling and sustainability

F I NA L A N NOUN C EME N T

Palm oil consumption eliminates dandruff, prevents cancer, relieves pain: Nutritionists

Olufunmilola Adewumi, chief nutritionist and head of the department at Shomolu General Hospital, told journalists in Lagos that palm oil contains linoleic acid (Omega 6), carotenoids (antioxidants), phytosterols, vitamin K, lauric and capric acids, and medium-chain triglycerides (antimicrobial and antifungal agents).

e dietitian noted that palm oil has many health bene ts over vegetable oil, which contains 15% unsaturated fats, 50% of mono-saturated fats, and 35% polyunsaturated fats.

Ms Adewumi said palm oil enhances the absorption of essential vitamin A, adding, “Due to its rich source of vitamin E, lycopene, and beta-carotene, palm oil serves as antioxidants that reduce oxidative stress, prevent cancer, safeguard the brain tissues, and reduce age-related macular degeneration.

“It also contains vitamin K, which is crucial for blood clotting and bone health and when ingested moderately daily, it provides cardio-protective, anti-diabetic, anti-in ammatory and anti-thrombotic e ects.

“When palm oil is used topically, it restores hydration to dry skin, soothes headaches, relieves pain associated with rheumatism and aids in healing of wounds and skin infections.

“It eliminates dandru , thereby supporting hair growth, has anti-caking property that prevents lumps from forming in powdered products, and it soothes bruises and sunburns,” she said.

Some nutritionists and lifestyle experts have urged Nigerians to use palm oil instead of other vegetable oil due to its nutritional value.

“By using little oil in our cooking, we can reduce our overall calorie intake and maintain a healthy weight and lifestyle,” the nutritionist said.

In her contribution, another Lagos-based registered dietician and nutritionist, Adaeze Oparaku, said using palm oil on all dishes was healthy if it was not bleached.

“As a matter of diversity, one can incorporate both palm oil and vegetable oil, but remember moderation is key,” she said.

Ms Adewumi, however, said that regardless of the oil one chooses to use, it is important to be mindful of the amount used in cooking for a healthy lifestyle.

toxic.”

She said the total inclusion of palm oil into daily diets prevented some major diseases.

“Palm oil is much healthier, but if you take the same palm oil and bleach because you want to make ofada sauce, you are also killing the oil nutrients.

Source: News Agency of Nigeria

Photo from Star Health Insurance

MPOB calls for setting up of oil hub, redistribution center in Egypt

Malaysia should take advantage of its recent cooperation with Egypt by establishing an oil hub or redistribution center, according to the Malaysian Palm Oil Board (MPOB).

Its director-general Datuk Dr Ahmad Parveez Ghulam Kadir emphasized the mutual bene ts of the initiative, highlighting the promising results from the current mission, which underscored both nations' eagerness to cooperate in investments within the agro-commodities sectors and bulking facilities.

"By leveraging Egypt's strategic position and ability to re-export to neighboring countries, Malaysia can consider establishing a hub for Malaysian palm-based downstream products at one of Egypt's major ports.

e proposed hub in Egypt would serve as a vital link in the distribution chain, ensuring timely delivery of palm oil products to markets in the Middle East and North Africa. " is can also encourage small quantity imports by Egyptian industry members directly from Malaysian exporters, thus eliminating the additional cost of dealing with a third party," said Ahmad Parveez.

In addition, Ahmad Parveez said Malaysia could establish its distribution hub in the Suez Canal Economic Zone (SCZONE), which provides facilities that could enhance the market presence of Malaysian palm-based products in the region. erefore, he said the Malaysian oil palm industry could consider investing in bulking facilities in Egypt to gain market share in this region. "Egypt, with its unique geography, has high potential to be an economic and industrial hub, linking Europe, the Middle East and Africa - a unique trade triangle connected to the world via the Suez Canal.

"Additionally, Egypt is a key participant in some of the world's most prominent trade agreements such as African Continental Free Trade Area, the Common Market for Eastern and Southern Africa and Egypt Free Trade Agreement, to name a few," he said.

Photo by Macropolis
Photo from The Sudan Times

Moving forward, Ahmed Parveez said Malaysia should explore investing in higher-value retail products of the downstream sector in Egypt. is can be achieved through partnership arrangements and strategic alliances with local partners in the market.

" ese initiatives could be joint e orts between Malaysian palm oil stakeholders and the Egyptian Businessmen's Association (EBA), enhancing and strengthening the importance of the oil palm industry and other commodities like timber and rubber in contributing to Egypt's economic and social development productivity," he added.

Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani recently led a Malaysian delegation to Egypt and Turkiye for a working visit from May 27 to June 1. In Cairo, he was received by Egypt's Supply and Internal Trade Minister Dr Ali El Moselhi.

During his visit, Johari discussed with Dr Ali to strengthen bilateral cooperation between the two countries as well as business leaders in the palm oil industry. He said Egypt will remain Malaysia's key trading partner as the government sets to expand its palm oil exports to South Africa and the Middle East.

""I am con dent that Egypt's strategic geographical location would enhance our nations' economic prosperities. "In our discussions, I emphasized to the Egyptian government regarding Malaysia's commitment to providing Egypt with a steady supply of high quality and sustainable palm oil certi ed by our locally-developed certi cation standard, MSPO.

Source: Azanis Shahila Aman, Business Times

Photo from Africa China Economy

Johor Port launches FGV Palm Industries’ inaugural export of certified palm kernel shells to Japan

Johor Port Berhad (Johor Port), a member of MMC Group, witnessed FGV Palm Industries Sdn Bhd’s (FGVPI) maiden export of certi ed Palm Kernel Shells (PKS) to Japan.

e landmark event held at Johor Port marked the collaboration between FGVPI and GBK International Sdn Bhd (GBKI) and showcased the e orts and dedication of all parties involved; highlighting the strategic role of Johor Port and GBKI in facilitating international PKS trade and supporting sustainable initiatives.

e signi cance of this export is ampli ed by FGVPI recently receiving the Golden Green Label (GGL) Certi cation which facilitates the importation of PKS into Japan. is accolade underscores FGVPI’s unwavering commitment to sustainable and eco-friendly practices, setting a high standard for the quality and sustainability of their products.

e Golden Green Label is awarded to companies which meet the stringent criteria for sustainability, environmental management and social responsibility. FGVPI’s adherence to these high standards re ects its dedication to preserving the environment while producing high-quality Palm Oil products.

e ceremony was o ciated by Johor Port Berhad CEO Md Derick Basir and attended by FGVPI head of by-product Su an Azman; Norzaidey Jelani from FGVPI headquarters; GBKI director Louis Low and Ra zal Esmail of Johor Port together with other representatives from the respective companies, key industry stakeholders and government o cials.

is inaugural shipment not only marks a signi cant milestone for FGVPI but also underscores Johor Port’s capabilities as a Southern Gateway Multi-Purpose Port and GBK International’s expertise in warehousing and cleaning services.

Md Derick said the successful export of certi ed Palm Kernel Shells to Japan through Johor Port showcases its capability to handle diverse and specialized cargoes.

“Palm Kernel Shells are part of our Dry Bulk cargo, and 2024 is shaping up to be a promising year for Dry Bulk, with an increase of 8% YTD up to March 2024 YoY (year-on-year). Going forward for 2024, we are con dent of handling 15% more Dry Bulk volume than 2023.

“We are proud to support FGV Palm industries in their sustainability journey and look forward to more such collaborations which drive economic growth and environmental stewardship,” he said in a statement.

Meanwhile, Low said with ve PKS cleaning lines, GBKI’s extensive experience in PKS handling and strong network in the Japanese market would be able to support FGVPI in managing and marketing PKS from Johor Port.

Johor Port, renowned for its state-of-the-art facilities and comprehensive port services, plays a vital role in Malaysia’s export industry, and GBKI’s contribution in providing specialized warehousing and PKS cleaning services, demonstrates their commitment to maintaining high standards in product quality and logistics management, which further enhances the quality and reliability of this landmark shipment.

is target aligns with FGVPI’s strategy to expand its market presence and contribute to global renewable energy solutions, leading the “Waste to Worth; Harmonising Palm Biomass Value for a Sustainable Future” initiative to enhance the global Biomass market.

Source: e Malaysian Reserve

Pics courtesy of AllGreen Energy (M) Sdn. Bhd.
(Fifth from left) GBK International director Louis Low; Norzaidey Jelani; Johor Port CEO Md Derick Basir; FGVPI Head of Procurement Rosliezan Md Husain; FGVPI Head of By-Product Su an Azman (Pics courtesy of FGV)

International Symposium on Plant Lipids

Lincoln, USA

Sawit Indonesia Expo 2024

Pekanbaru Convention & Exhibition, Ria u

16th National Seminar (NATSEM) 2024

Pullman Miri Waterfron t, Sa rawak, Mala ysia

T-POMI Technologie & Talent Palm Oïl Mill Indonesia 2024 Holiday Inn Bandung Pasteur, Indonesia

PALMEX Malaysia 2024 KLCC, Malaysia

World Food Istanbul 2024 Istanbul, Turkey

Globoil India 2024

The Westin Mumbai Powai L ake, India

The 7th of Malaysia International Agriculture Technology Exhibition 2024

S etia City Convention Centre, Malaysia

Food and Kitchen Tanzania

Dar Es Salaam, Tanzania

Oils & Fats International Congress 2024 KLCC, Malaysia

ICIS Pan American Oleochemicals Conference

The Ritz-Carlton Coconut Grove, USA

Heatech Indonesia

Jakarta International Expo, Indonesia

26th Central Asian International Exhibition FoodExpo Qazaqstan Almaty, Kazakhstan

Biofuels Expo 2024

Renaissance London Heath row Hotel, UK

Food Ingredients Europe 2024 Frankfurt, Germany

2nd Annual Food Security Asia Congress 2024

Kuala Lumpur, Malaysia

China Feed Industry Expo

Nanjing , China

Sustainable Aviation Futures North America Congress

Marriot Marquis, USA

20th Indonesian Palm Oil Conference (IPOC) and 2025 Price Outlook

Bali, Indonesia

Smart Nation Expo 2024 and EVM Asia 2024

MITEC, Malaysia

The 10th Indonesia

International Palm Oil Machinery & Processing Technology Exhibition 2024

Jakarta International Expo, Indonesia

ly

PALMEX Thailand 2024 CO-OP Exhibition Centre, Thailand

Seminar on Speciality Fats

Konya, Turkey

Malaysian Palm Oil Forum KL & Gala Dinner

3 October 2024

Kuala Lumpur, Malaysia

North American SAF Conference & Expo

Saint Paul Rivercentre, USA

Sustainable Aviation Fuetures APAC Congress Singapore

The 14th PALMEX Indonesia 2024

Santika Premiere Dyandra Hotel & Convention, Indonesia

YABITED Fats and Oils Congress

Antalya, Turkey

New drop-off point for cooking oil

Since 2017, residents of SS14 in Subang Jaya, Selangor, have had a way to properly dispose of their used cooking oil.

Instead of clogging drains with the oil, they can discard it into a collection drum at a nearby park, and get rewarded for it.

In 2021, an app was launched to enable customers to schedule used cooking oil collections via their mobile phones.

e company behind these innovations is Arus Oil (My Protech Sdn Bhd), which has collected 250 metric tonnes of old cooking oil from around Klang Valley since the start of its pilot project in Subang Jaya.

e used oil is purchased at RM3 per kg.

Now, Arus Oil has a drop-o center to collect used cooking oil from individuals and businesses.

Chong, 36, heralded this initiative as a major leap in environmental stewardship.

“Many households lack awareness of how to properly manage used cooking oil. is leads to health hazards from reusing the oil or environmental harm when it is poured down drains. is drop-o center o ers people a convenient and eco-friendly way to dispose of used cooking oil. Our new facility aims to educate and facilitate proper recycling, bridging this gap and promoting sustainable practices,” he added.

Located on Jalan Industri USJ 1/4 in Taman Perindustrian USJ 1, Subang Jaya, the drop-o centre operates from 10am to 6pm, Mondays to Saturdays.

“We accept vegetable-based oil. However, it must never be mixed with any fossil fuel,” said Chong. He said the used cooking oil would undergo ltration to remove sediments, moisture and impurities. e oil is then lab-tested before being sent for conversion into biodiesel.

During the drop-o center’s launch, visitors were taught how to make candles from processed used cooking oil, led by Lit & Lull candle shop owner Amy Ng.

“We source processed used cooking oil from Arus Oil for candle-making. is transforms discarded resources into something beautiful and purposeful,” the 32-year-old Ng said.”

Source: Ethel Siao, e Star

Used cooking oil drop-off center in Subang Jaya (Photo from The Star)
Pics courtesy of Arus Oil
Ng shared the candle-making process with a visitor at the event (Photo by RAJA FAISAL HISHAN / The Star)

Garcia Re nery Corporation (GARECO) has started construction of its P600-million palm oil re nery in SOCCSKSARGEN, the rst of its kind in Mindanao (Philippines), that could help advance the local industry.

e facility, which will become the rst modern locally developed re nery on the island, will produce high-quality palm oil derivatives such as palm olein, palm stearin, margarine, and other products for both the local and international markets.

State-run Land Bank of the Philippines (LANDBANK) extended a P450-million loan to GARECO, which is part of the AC Garcia Group of Companies, for the development of the planned re nery in SOCCSKSARGEN, comprising South Cotabato, Cotabato, Sultan Kudarat, Sarangani, and General Santos City.

LANDBANK said earlier the re nery would generate employment opportunities and expand the company’s workforce from ve to as many as 50 workers, including a mill manager, supervisors, operators, mechanics, electricians, laboratory analysts, and sta for administrative and marketing functions.

“ e re nery mill is expected to make oil palm products more accessible and a ordable for the local market, and serve as a stable source of income for oil palm growers from Sultan Kudarat and Maguindanao,” the bank added.

GARECO has formed partnerships with 63 farmers to manage 3,065 hectares (ha) of farmland planted with palm oil trees.

P600-million palm oil project starts rolling

According to the Department of Agriculture (DA), the potential supplier of palm oil nuts is much bigger, considering that in Sultan Kudarat alone, palm oil trees have been planted on 14,000 ha of farmland.

“ e establishment of the rst palm oil re nery in the SOCCSKSARGEN region underscores the immense potential for growth and development within the palm oil sector,” Agriculture Secretary Francisco Tiu Laurel Jr. said.

e blueprint covers programs, activities, and projects to address concerns of the industry, as well as serves as a reference in sourcing funds to implement industry projects.

According to the blueprint, the proposed strategies to advance the industry include the expansion of areas to meet domestic needs for food security, the development and adoption of available and appropriate technologies, and the enhancement of market access through standards development and e ciencies of production and enforcement of appropriate policies.

Source: Philippine Daily Inquirer

LANDBANK Senior Vice President Charlotte I. Conde (3rd from right) and Garcia Re nery Corporation (GARECO) President and CEO Erwin Anthony Y. Garcia (2nd from right) lead the signing of a loan agreement to nance the construction of the very rst palm oil re nery mill in SOCCSKSARGEN, which is expected to be completed by the rst quarter of 2024. ey were joined by (from right to le ) GARECO Secretary Marina Carmella L. Garcia, LANDBANK Sultan Kudarat Lending Center Head Assistant Vice President Harold P. Celestial and LANDBANK Tacurong Branch Head Department Manager Joel A. Argonza (Pics courtesy of LANDBANK)

Tiu Laurel expressed the DA’s commitment to proactively “nurture the growth and development of the palm oil industry” after the five-year Palm Oil Road Map was recently updated to support the industry.
Pics courtesy of Garcia Refinery Corp.
Pics courtesy of Garcia Refinery Corp.

Presco Nigeria to acquire Ghanaian oil palm company for $125 million

Presco Plc, a Nigerian oil palm company, is set to acquire a 100% stake in the Ghanaian Oil Palm Development Company (GOPDC) for $124.9 million. e acquisition involves buying 70,580,000 shares at $1.77 each. e deal will be partly funded by an initial deposit of $64.962 million.

Presco expects that the deal will help in its currency diversi cation e orts, as GOPDC generates about 41% of its revenue from export sales.

Presco notes several reasons for the deal, including increased market share and customer base. e company expects that the transaction will increase its plantation size by 19%, from 43,457 hectares to 51,760 hectares.

Another rationale proposed by the company is achieving economies of scale, as the deal is expected to help Presco strengthen its competitive position and optimize its resource utilization.

GOPDC is currently a subsidiary of Siat Group, one of the key shareholders in Presco. e company’s operations are similar to Presco’s, involving the cultivation of oil palm, extraction of crude palm oil, and palm kernel oil, as well as the production of re ned oil products.

GOPDC presently operates from two oil palm estates in the Eastern Region of Ghana - the Kwae Estate and the Okumaning Estate, with about 21,000 hectares of oil palm plantation, of which 13,000 hectares are developed.

Source: David Olujinmi, Nairametrics

Pics courtesy of Ghanaian Oil Palm Development Company
Pics courtesy of Presco Plc

Gamalux Oil Sdn Bhd’s research and development center is focused on advancing sustainable oil palm origin-based products to support global sustainable aviation fuel (SAF) and hydrogenated vegetable oil (HVO) producers.

Gamalux’s Chief Executive O cer and Managing Director Usman Ahmed said Gamalux’s commodities are rooted in its dedication to environmental, social and governance (ESG) practices.

Gamalux now stands as one of Malaysia’s leading producers of renewable energy feedstocks of SAF, HVO and Green Truck Diesel industries, leveraging the potential of vegetable oil waste for sustainable energy solutions.

is center, which is located in Lahad Datu Palm Oil Industrial Cluster (POIC) is in line with Gamalux’s mission to enhance the value of oil palm feedstocks, enabling sustainable and e cient production.

He then elaborated that Gamalux aims to optimize these feedstocks for renewable and green energy applications through innovative research, speci cally targeting the development of biofuels and other green technologies.

Usman also said the center prioritizes the re nement and diversi cation of oil palm derivatives, fostering a circular economy that minimizes waste and maximizes utility. He added that by pushing boundaries in research and development, Gamalux is dedicated to empowering the transition towards renewable energy solutions anchored in the potential of palm oil based products.

Earlier, Deputy Plantation and Commodities Minister Datuk Chan Foong Hin while o ciating at the groundbreaking ceremony said it was a pleasure to visit Gamalux Oils Sdn Bhd’s factory. Chan said he was impressed to see the signi cant investment from Pakistan through Gamalux at POIC Lahad Datu, which underscores the growing international interest in Sabah’ economic potential.

‘I am also excited to hear about Gamalux’s plans for oleochemicals expansion in 2025, marking a significant milestone as the first unit in Malaysian Borneo.’ - Datuk Chan Foong Hin

Gamalux’s R&D focuses on advancing sustainable palm oil products

“ is event not only demonstrates Gamalux’s ambition but also its strong con dence in Lahad Datu as a growing hub for sustainable industrial development within the palm oil sector,” said Chan.

Chan said that by enhancing Lahad Datu's industrial landscape, he hopes Gamalux is not only shaping its own future but also contributing to Sabah’s economic resilience.

He said this strategic decision underscores Gamalux’s commitment to driving positive change and fostering prosperity, setting a remarkable precedent for the industry and the region as a whole. “I am looking forward to witnessing the continued success of Gamalux and the broader POIC initiative.”

“Together let us work towards a prosperous and sustainable future for Sabah as a hub of sustainable economic development,” he added. During his visit, Chan also visited the existing Solvent Extraction Plant (SEP) and Specialized Re nery Plant (SRP) at Gamalux Oils’ Sabah facility.

Source: Bernama

Photo from Borneo
Photo from Bernama
Photo from Bernama

China’s Approval of Palm Tocotrienol (vitamin E) Product Registration: A Significant Milestone for Malaysian Palm Oil Industry

In a groundbreaking development, China o cially approved the registration of the palm tocotrienol product in March 2024, marking a signi cant milestone for the Malaysian palm oil industry. is approval, signifying China's recognition of the product's quality and safety standards, is a result of the collaborative e orts between the Malaysian Palm Oil Board (MPOB) and Malaysian oil palm industry players.

Following this announcement, palm tocotrienol is now authorized for export and use in food applications within China.

is achievement underscores the commitment and relentless pursuit of excellence by the Malaysian palm oil sector in adhering to international health and safety standards. It also exempli es the strategic collaboration between government bodies and industry players in navigating the complexities of global market access and regulatory approvals.

Special acknowledgement is extended to e Right Honourable Dato’ Sri Haji Fadillah bin Haji Yusof, Deputy Prime Minister of Malaysia, for his pivotal role in facilitating this achievement. During his o cial visit to China in November 2023, Dato’ Sri Fadillah raised the matter of tocotrienol registration with his counterparts in China, thereby signi cantly aiding the registration process. is showcases the e ective diplomatic and trade relations between Malaysia and China, fostering mutual growth and development in the palm oil sector.

In response to this approval, YBhg. Datuk Dr. Ahmad Parveez Ghulam Kadir, Director General of MPOB, has urged industry members to grasp the golden opportunity to export tocotrienols to China, emphasizing the potential to signi cantly strengthen market presence and revenue in one of the world’s largest markets.

“ is approval is one of the best gi s awarded by the Chinese Government to the Malaysian oil palm industry in conjunction with the 50th anniversary celebration of the diplomatic ties between Malaysia and China, symbolizing a strong and enduring friendship as well as mutual respect and cooperation,” said Dr. Ahmad Parveez.

e approval of the palm tocotrienol product registration not only opens new avenues for the Malaysian palm oil industry to penetrate the Chinese market but also has the potential to bring signi cant positive impacts to Malaysia's economy. e increased export of tocotrienols to China could lead to a substantial boost in the nation's revenue, contributing to economic growth and sustainability in the agricultural sector.

MPOB, along with the Malaysian oil palm industry players, remains committed to leveraging this opportunity to enhance the visibility and acceptance of Malaysian palm oil products in China and beyond, ensuring the continued growth and sustainability of the industry.

Source: MPOB’s Media Release

Photo from AAPS Newsmagazine
Photo from MPOB

Palm oil by-product transforms into PVC thermal stabilizer with possibilities for recycling and sustainability

e quest for sustainable alternatives to conventional materials has led to the exploration of waste by-products as potential resources. In a novel approach, researchers from the Institut Teknologi Bandung have developed a method to synthesize an organotin mercaptide-based thermal stabilizer from palm fatty acid distillate (PFAD), a by-product of the palm oil re ning industry. is development not only o ers a solution to the disposal of PFAD but also presents a competitive alternative to existing PVC stabilizers.

e construction and plastics industries frequently rely on polyvinyl chloride (PVC) for its durability and versatility. However, the thermal stability of PVC is a signi cant concern, necessitating the use of stabilizers to prevent degradation during processing.

Traditional stabilizers, such as mixed metal stearates, while e ective, may not be the most sustainable option. e innovative research conducted by I Dewa Gede Arsa Putrawan and Adli Azharuddin introduces a green alternative derived from palm oil by-products.

e study involved a two-step synthesis process, converting PFAD into mercaptoethyl palmitate (MEP) and subsequently into methyltin mercaptoethyl palmate sul de (MTMEPS). e synthesized MTMEPS was evaluated for its thermal stabilizing e ects on PVC and compared with mixed metal stearate in terms of e cacy and economics.

e results were promising, with MTMEPS demonstrating superior thermal stability compared to mixed metal stearate at a lower dosage. e study employed dehydrochlorination tests and two-roll mill discoloration tests to evaluate the performance of the synthesized stabilizer. e ndings indicate that MTMEPS not only enhances the thermal stability of PVC but also does so more e ectively and economically than conventional stabilizers.

e economic evaluation of MTMEPS revealed that its production cost is competitive, with a raw material cost of 6.52 USD/kg and an estimated market price of 13.00 USD/kg. is positions MTMEPS as a viable economic alternative to traditional stabilizers, considering its performance and the lower dosage required.

e research concludes that the valorization of PFAD for PVC thermal stabilization is a signi cant step towards sustainable material use and waste management. e ndings open avenues for further research and development in the use of by-products for value-added applications, contributing to a circular economy in the chemical and plastics industries.

Source: Journal of Bioresources and Bioproducts

Pics courtesy of Inaexport
Metal stearates for PVC application (Pics courtesy of Repolyfine)
Pics courtesy of Institut Teknologi Bandung

MALAYSIAN PALM DOWNSTREAM RELATED MINISTRY, AGENCY

& ASSOCIATION

Ministry of Plantation Industries and Commodities (KPK)

Jalan P2p, Presint 2, 62000 Putrajaya, Wilayah Persekutuan Putrajaya.

Phone : +6 03 8000 8000

Fax : +6 03 8880 3482

Email : portalmaster@kpk.gov.my www.kpk.gov.my

Malaysian Palm Oil Board (MPOB) 6, Persiaran Institusi, Bandar Baru Bangi, 43000 Kajang Selangor. Phone : +6 03 8769 4400

Email : general@mpob.gov.my www.mpob.gov.my

Malaysian Palm Oil Council (MPOC)

Level 25, PJX HM Shah Tower, No. 16A Jalan Persiaran Barat PJS 52, 46200 Petaling Jaya, Selangor Darul Ehsan, Malaysia. Phone : +6 03 7806 4097

Fax : +6 03 7806 2272

Email : wbmaster@mpoc.org.my www.mpoc.org.my

Malaysian Palm Oil Certi cation Council (MSPO)

Level 2, Tower 2B, UOA Business Park, Unit 2-1, No 1, Jalan Pengaturcara U1/51, Seksyen U1, 40150 Shah Alam, Selangor.

Phone : +6 03 2181 0192

Email : info@mpocc.org.my www.mpocc.org.my

Malaysian Palm Oil Green Conservation Foundation (MPOGCF)

Level 12-3-3A PJX HM Shah Tower,16A, Persiaran Barat, Pjs 52, 46200 Petaling Jaya, Selangor. Phone : +6 03 7931 5544 / 5445 www.mpogcf.org

Malaysian Palm Oil Association (MPOA)

Tower 3, Level 8, Unit 03-08-09&10, UOA Business Park, No, 1, Jalan Pengaturcara U1/51, 40150 Shah Alam, Selangor. Phone: +6 03 5021 0730

Email: admin@mpoa.org.my www.mpoa.org.my

Palm Oil Millers Association of Malaysia (POMA)

27 Jalan Soo Ah Yong, Taman Canning 31400 Ipoh, Perak, Malaysia. Phone : +6 05 548 2279

Fax : +6 05 545 0380

Malayan Agricultural Producers Association (MAPA)

Unit K03-08-08, Tower 3,UOA Business Park, 1, Jalan Pengaturcara U1/51, 40150 Shah Alam, Selangor. Phone : +6 03 5031 3995

Email : mapahq@mapa.net.my www.mapa.net.my

Malaysian Oleochemical Manufacturers Group (MOMG)

Wisma FMM, No. 3 Persiaran Dagang, PJU 9, Bandar Sri Damansara, 52200

Kuala Lumpur, Malaysia.

Phone : +6 03 6286 7200

Fax: +6 03 6274 1266 / 7288

Email : secretariat@momg.org.my www.momg.org.my

Malaysian Edible Oil Manufacturers’ Association (MEOMA)

134-1 Jalan Tun Sambanthan 50470 Kuala Lumpur, Malaysia. Phone : +6 03 2274 7420

Email : secretariat@meoma.org.my www.meoma.org.my

Malaysia Biodiesel Association (MBA) Wisma FMM, No. 3 Persiaran Dagang, PJU 9, Bandar Sri Damansara, 52200 Kuala Lumpur, Malaysia. Tel : +6 03 6286 7200

Fax : +6 03 6277 6714

Email : secretariat@mybiodiesel.org.my www.mybiodiesel.org.my

Palm Oil Re ners Association of Malaysia (PORAM)

801C & 802A, Block B, Executive Suites Kelana Business Centre, No. 97 Jalan SS7/2, Kelana Jaya 40731 Petaling Jaya, Selangor, Malaysia.

Phone : +6 03 7492 0006

Fax : +6 03 7492 0128

Email: info@poram.org.my www.poram.org.my

Expanding Horizons: e Growth and Potential of Malaysian Palm Oil in the Tanzanian Market

Edible Oil Sector in Tanzania

e edible oil industry is vital to Tanzania’s economy and food security. e country produces over 450,000 metric tons of edible oil annually, predominantly from sun ower and groundnut oil. Despite signi cant growth in sun ower seed production, Tanzania’s edible oil processing capacity remains notably low compared to the demand. A considerable portion of this demand gap, which surpassed 950,000 metric tons in 2023, is lled by imports, constituting around 60% of the total consumption of all edible oils.

Palm Oil in Tanzania

Palm oil is the most widely used edible oil in Tanzania, favored for cooking due to its a ordability, availability, and compatibility with traditional dishes. It also plays a pivotal role in various industrial applications, including food processing, cosmetics, and biodiesel production. Its versatility, cost-e ectiveness, and favorable properties make it the preferred choice across several sectors in Tanzania.

Palm oil accounts for 50% of Tanzania’s total edible oil consumption, with nearly all requirements met through imports, which constitute approximately 98% of the country’s total edible oil imports. e upward trend in Tanzania’s edible oil requirement re ects economic recovery, especially as the nation’s tourism and food service sectors rebound post-pandemic. e diverse applications of palm oil, ranging from food processing to personal care and industrial uses, underscore its a ordability and versatility, making it a staple in local kitchens and a preferred ingredient for food manufacturers.

Malaysian Palm Oil in Tanzania

In 2023, Tanzania solidi ed its position as a signi cant market for Malaysian palm oil, becoming the second-largest importer of Malaysian palm oil in sub-Saharan Africa and the 12th largest globally, up from 17th in 2022. is surge, attributed to a notable 29% growth in palm oil imports during the 2023 nancial year, re ects Tanzania’s increasing demand for palm oil and its strengthening economic and trade relations with Malaysia, a major producer in the industry.

e MPOB data for Tanzania between 2022 and 2023 highlights signi cant trends in the types and quantities of palm oil products imported. During this period, there was a remarkable surge in imports of crude palm olein, indicating a growing preference for this processed oil over solid fats. Cooking oil also accounted for a signi cant portion of the imports, maintaining consistent volumes over the two years, which suggests a steady demand for this essential cooking ingredient within the Tanzanian market. In contrast, the import of re ned, bleached palm olein declined in 2023, possibly due to increased domestic re ning capabilities or shi s in market preferences towards less processed products. Meanwhile, imports of palm fatty acid distillate remained relatively stable, re ecting consistent demand for by-products used in industries like soap manufacturing.

Photo from Tanzania Specialist

Growing Oleochemical Industry in Tanzania

In Tanzania, the soap manufacturing and bath product industries are experiencing a notable growth rate of 3.73% annually. Essential ingredients such as soap noodles, akes, chips, blends, and stock, all derived from palm oil, are fundamental to soap production. Moreover, various oleochemicals sourced from palm oil are crucial in personal care, pharmaceutical, and industrial sectors, emphasizing Tanzania’s reliance on palm oil derivatives for a range of consumer and industrial goods. is reliance highlights ongoing opportunities to expand the market share of Malaysian palm oil within the region. Additionally, there is signi cant potential for market expansion into landlocked countries such as Burundi, Malawi, Rwanda, and Zambia, o ering promising prospects for the growth of palm oil-derived oleochemicals.

Outlook for 2024

Tanzania remains a promising market for Malaysian palm oil in 2024, with potential for further expansion through strategic initiatives. Emerging as a key hub for Malaysia in the African edible oil market, Tanzania’s strategic projects, such as the Standard Gauge Railway connecting Dar es Salaam with neighboring landlocked countries like Rwanda, Burundi, and Uganda, position it uniquely for re-exportation. Furthermore, Tanzania’s strategic location makes it an ideal distribution center, alongside Kenya, in the East African region.

Looking forward to the 2024 nancial year, the Tanzanian edible oil market is poised to experience a moderate increase in import and consumption volumes. e Malaysian Palm Oil Council (MPOC) forecasts a rise in Malaysian palm oil imports to 350,000 metric tons, marking a 9% increase from 2023. is uptick is attributed to anticipated urbanization exceeding 50% in the next decade, fueling demand for processed foods and various edible oils. Additionally, projected growth in both the food and non-food sectors, along with increased purchasing power among the population, will further drive this demand.

Source: ev Batumalai, MPOC

MPO Import in Tanzania

Volume (Metric Tons) of Malaysian Palm Oil imported by Tanzania (Data table from MPOB)
(Metric Tons) of Malaysian Palm Oil imported by Tanzania (Data chart from MPOB)

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