TM
MALAYSIAN PALM OIL COUNCIL
KKDN PP 14669/05/2010 (024659)
South Africa The Shining Star of the African Palm Oil Market THANKS to the Black Economic Empowerment (BEE) Policy. This has made living conditions among South Africans, especially the Black Africans, better. At the same time, with a higher earning power, a lot more of them can now afford to own houses. This new middle-income African created is also driving up demand for various consumer goods, from basic necessities to luxury items. Being essential items used daily, edible oils and fats have largely benefited from this development. These products include cooking oil, soap and margarine for home use. COOKING OIL MARKET South Africa’s cooking oil market is estimated at 356,600 metric tonnes. Cooking oil sold in the country is packed in containers of 375ml, 500ml, 750ml, 2L, 4L and 20L. Sunflower oil, which is the major edible oil produced in South Africa, dominates the market, followed by soybean and olive oils. Major players in the South African cooking oil market are Nola Industries (Pty) Ltd., Sealake Industries (Pty) Ltd. and Willowton Oil & Cake Mills Pty Ltd. With rising health consciousness, companies are introducing brands of cholesterol-lowering and zero-cholesterol cooking oil to capture the growing demand for healthier cooking oil. One such company is Nola Industries, which has launched the Cholesterol Go brand. This product targets consumers seeking low cholesterol cooking oil. Another company, Willowton, offers the Sunfoil brand of sunflower oil, which it claims is cholesterol-free. HOUSEHOLD MARGARINE MARKET Estimates from trade sources show that household margarine consumption was about 247,300 MT last year. This segment is dominated by Unilever, followed by Willowton Oil Mills. Brands of household margarine most commonly seen in the supermarkets are Flora and
VOL: 5 2009 MARKETING & MARKET DEVELOPMENT DIVISION DIRECTOR Wira Adam
wira@mpoc.org.my
MANAGER Muhammad Kharibi Zainal Ariffin kharibi@mpoc.org.my MARKET ANALYSTS
Rama, both produced by Unilever. Willowton produces the popular Romi and Sunshine brand of brick margarine. The biggest marketing issue relating to household margarine is trans fatty acid. More and more consumers are not buying margarine containing trans fatty acid as it is proven to raise the level of bad cholesterol (LDL cholesterol) and lower the level of good cholesterol (HDL). Manufacturers are responding to this development by eliminating trans fatty acids from their products. For example, Hudson & Knight, the oils and fats manufacturer in South Africa that is part of the Malaysian multi-national consortium, Sime Darby Bhd, has eliminated trans fatty acids from all its manufactured products. Nestle, Kraft Foods, Frito-Lay and Campbell have also removed trans fatty acids from their products. SOAP MARKET Annual production of soap is around 200,000 MT, of which 70% is laundry soap. The high demand for laundry soap is from the rural population, which relies on this for laundry and bathing. South Africa’s soap-making factories are mainly located in Kwazulu-Natal and Gauteng areas. Multinational companies like Unilever and Colgate Palmolive dominate the toilet soap market. These 2 companies account for approximately 60% share of the toilet soap
Asia Pacific
Desmond Ng Kok Hooi desmond@mpoc.org.my Lim Teck Chai lim@mpoc.org.my
South Asia
Fatimah Zaharah Md Nan fatimah@mpoc.org.my
Middle-East
Mohamad Suhaili Hambali msuhaili@mpoc.org.my
Africa
Nor Iskahar Nordin iskahar@mpoc.org.my
Europe
Azriyah Azian azriyah@mpoc.org.my
Americas
Ahmad Fadzli Abdul Aziz fadzli@mpoc.org.my
For more information, please contact Tel : 603 - 7806 4097 Fax: 603 - 7806 2272
market, where local soap manufacturers Elangeni Soap, Golden Glo, Willowton, Sealake and Capital Oils are major players in the laundry soap market. OPPORTUNITIES FOR PALM OIL IN SOUTH AFRICA Cooking oils are by far the largest consumed products in the oils and fats sector. Further growth by 29,400 MT from 356,600 MT last year to 386,000 MT is expected in 2010. Margarine is the second largest sub-sector, forecasted to grow to 248,800 MT next year from 247,300 MT in 2008. Apart from the increase in purchasing power of the African Continued on page 6
South Africa Economic Indicators 2006 2007 GDP (USD billion) 453.3 476.4 GDP per capita ('000 USD) 9.5 9.8 GDP growth (%) 5.3 5.1
2008 489.7 10 2.8
Current And Projected Sales Of Oils & Fats (‘000 MT) 2008 Cooking oils Household Margarine Soap : Toilet : Laundry
356.6 247.3 86.4 113.6 Trade Source
2009
2010
370.8 248.8 89.8 110.3
386.0 248.8 93.2 106.8
MPOC FORTUNE
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M A R K ET W Watch
Strong Resistance at RM2,800 by Benny Lee Chief Market Strategist NextView Group The price of crude palm oil in the futures market (FCPO) has been very bullish the past month, despite being overbought and having a technical resistance at RM2,540 per metric tonne. The price of FCPO surged RM204 or 8.3 per cent on-month. It went as high as RM2,799 twice in May, but failed to break above this level before settling at RM2,663 on Friday, May 15.
mid-May was 12,700 contracts, a 44 per cent increase from the previous corresponding month. The high increase in volume, despite the price not getting higher, also indicates that the price of FCPO is toppish.
average of RM1,900 to RM2,200. Therefore a sharp pullback is expected. There is a saying in the market that if price goes up sharply, it falls sharply also.
The surge in price was a result of speculation because of improving export figures. The price has retraced to almost 50 per cent from the high of RM4,486 in March 2008 to a low of RM1,331 in October 2008. The downward correction of about RM130 over two days in mid-May was likely because of traders liquidating their long positions, even though overall fundamentals are still strong. The Malaysian Palm Oil Board (MPOB) reported the April crude palm oil output at 1.29 million tonnes, or 0.8 per cent higher on-month. Malaysian palm oil exports continue to increase. Cargo surveyor Intertek Agri Services and SGS Malaysia estimated export to rise by 1.7 per cent and 8 per cent respectively on-month during the May 1-15 period. The likely tax on Indonesian exports of palm oil in June may cause the price to be driven up because of lower exports. The weakening price in the past few days up to May 15, despite strong fundamental factors, shows that the market has anticipated these factors and is already discounted in the current price. There is a strong resistance at RM2,800 and to go beyond this level, the market needs a much stronger catalyst to boost the CPO price. The price of FPCPO is still in a very strong uptrend, but a little weaker from April. The short- and long-term 30- and 90-day moving average is still up, but the price is getting nearer to the short-term average. The weaker momentum is also detected in momentum indicators like the Relative Strength Index (RSI) and the Average Directional Index (ADX). Both these indicators’ values are declining. The daily average volume for mid-April to
FCPO daily chart as at May 15, 2009. Charted by Benny Lee using NextView Advisor Professional
The price of FCPO is currently 21.3 per cent above the 15-week moving average. It was 23 per cent above this average in April. The decline in the price momentum in mid-May was the first in eight weeks. The 15-week average is currently at RM2,194, while the longer term 30-week average is at RM1,910. The presence of “doji” Japanese Candlesticks chart patterns on the weekly chart in the first two weeks of May shows that the market is toppish and a correction is likely to happen. The resistance at RM2,800 is strong because it was tested twice in May without being able to break above it. With weaker bullish momentum and toppish price patterns, the price of FCPO is expected to go into a downward correction, with a higher confidence. The price is expected to pull back to the
Mr Benny Lee is a private trader, trainer and sought-after speaker in the financial market. He is the Chief Market Strategist for NextView Group. NextView Group is a group of companies in the Asian region that provides a leading real-time investment tool for both professional and retail investors. NextView is also a leading Investor Education training provider. For more information, log on to www.nextview.com The above analysis and commentary is based on the writer’s personal opinion towards the price of crude palm oil using technical analysis and should not be construed as any form of investment advice. The writer will not be responsible for any decision made from using the above article.
MPOC FORTUNE • 3
For more information, please contact : ICB Global Management Sdn Bhd No. 3, Jalan Sri Hartamas 7, Taman Sri Hartamas, 50480 Kuala Lumpur, Malaysia. Tel: +603 6201 6051 Fax: +603 6201 6053
M A RKE T Ins In s igh g ts
Whither India’s Green Revolution “Everything else can wait, but not agriculture” Jawaharlal Nehru 1947
India has moved rapidly from an overly agriculture-dependent economy to industrialisation. Industrial growth, including service sectors such as IT/software and tourism, grew at a much faster pace than agriculture. The focus of the policy makers is no longer agriculture-centric as it was during the early years of independence. This shift in priority may have been partly responsible for the slow pace in the development of the oilseeds sector. More often than not, low returns of the farmers are blamed for the slow pace of growth of the oilseeds sector. This was put to rest in the last couple of years when commodity prices, including that of vegetable oils, saw a sharp upswing. However, the resulting higher returns for farmers did not translate into higher production.
ONCE dependent on imports for its grains requirement, India went seriously into a Green Revolution. The White Revolution enabled the country to meet its dairy requirements, but the Green Revolution to boost agriculture failed, making India one of the world’s biggest vegetable oil importers. Demand for vegetable oils has increased significant since India attained independence in 1947. Consumption increased from a low of 2kg per capita consumption in the early 1970s to 6kg in 1990 and currently stands at close to 13kg. This increase has translated into a phenomenal rise in the annual consumption of vegetable oils, from 2 million metric tonnes in 1970 to 13 million MT now. Three principal factors are responsible for this sharp rise in Indian vegetable oil consumption.
1. Exponential increase in population: India’s population increased from 363 million in 1951 to 1.028 billion in 2001 and is estimated to touch 1.166 billion by the end of this year. The sheer magnitude of these figures alone contributed to a sharp rise in oils and fats consumption. 2. Improved economic well-being: The opening up of the Indian economy increased the disposable income of Indian households, translating into an increased per capita consumption. 3. Increase in industrial and healthcare applications: Globalisation of the Indian economy also brought about an increase in the use of healthcare products and consumption of fast foods, a sure recipe for higher consumption of oils and fats.
The table on page 9 gives a snapshot of India’s oilseeds production over the last decade: Even a cursory glance at this table highlights the fact that the annual production of oilseeds in the last 5 years has stagnated in the 24 to 25 million MT range, except during 2005-06. In the otherwise gloomy scenario, soybean seems to be the shining star, with a gradual but steady increase in production from 2004-05 onwards. Most analysts see an annual consumption growth of 500,000 MT. If this increase is not bridged by imports, radical policy changes need to be adopted to meet the demands of the teeming masses. The hike in commodity prices early last year has further highlighted the possibility of high inflation if supply is not increased to meet the projected demand. Continued on page 9
MPOC FORTUNE • 5
MA R KET I ns nsight In gs gs
Data from Kurt G. Berger’s book on the use of palm oil for frying shows that 30% palm oil blended with 70% sunflower oil has a cloud point of -6.5°C, which is suitable for use during winter in South Africa, when the temperature is around 0°C. Based on Berger’s study, there is greater potential for palm oil demand as cooking oil, from 107,000 MT last year to 115,800 MT in 2010.
Continued from page 1
South Africa The Shining Star of the African Palm Oil Market middle income earners, the growth is linked to increased accessibility in South African store shelves as retailing chains expand and population increases. Compared with the cooking oil and margarine sectors, growth of the soap sector is slow, stagnating at 200,000 MT as the population is anticipated to register near to zero growth between 2008 and 2010. However, demand for toilet soap is projected to increase while consumption of laundry soap is forecasted to drop due to the rising preference of using toilet soap for bathing. POTENTIAL UPTAKE FOR PALM OIL Based on research available, margarine has about 80% oil content. The average fatty acid composition for toilet soap is 80% and 60% for laundry soap. This finding, and the projected demand obtained from the industry, implies that the use of oils and fats will rise with increased consumption of cooking oils, household margarine, toilet and laundry soaps. Because of price competitiveness and growing concerns about trans fats, there is a good chance that palm oil will meet a large portion of the future demand for ingredients to produce margarine. On the other hand, it is difficult to promote the use of palm olein in the cooking oil sector because of its natural clouding effect.
Segment
The changing preference in soap usage between toilet and laundry soaps will see a change in raw material used, with more palm stearin/PKO or tallow/coconut oil used instead of PFAD and acid oil, which are the main oil-based raw materials for laundry soap. Between the combination of raw materials for toilet soap production, palm stearin/PKO ranked superior to the tallow/coconut combination as palm-based oils are acceptable by the users of all religious backgrounds. Palm stearin, which is easier to obtain in the market than tallow, is the other main reason for the preference for palm stearin/PKO over the tallow/ coconut combination as raw materials for making toilet soap. In 2007, South Africa imported only 21,200 MT of tallow and 1,800 MT of coconut oil catering mainly for soap sector. CONCLUSION South Africa will be able to buy more oils and fats because of its population’s improved purchasing power, especially the growing middle income community. There is good prospect for higher palm oil imports by South Africa as the country cannot produce enough edible oils to satisfy local requirements for several reasons, including land shortage. Local annual production of oils and fats is about 400,000 MT, with 60% of the output being sunflower oil. The amount of oils
Estimated Oils and Fats Demand 2008 To 2010 (‘000 MT) 2008 2009
2010
Cooking oils
356.6
370.8
386.0
Household Margarine
197.84
199.04
199.04
Soap : Toilet Laundry
69.12 68.16
71.84 66.18
74.56 64.08
South Africa’s Oils and Fats Requirement: Projected Self Sufficiency from 2007 to 2012 (’000 MT) 2007 2008p 2009f 2010f 2011f Consumption 1,179.8 1215.2 1251.6 1289.2 1327.9 Production 461.0 461.0 461.0 461.0 461.0 Shortfall 718.8 754.2 790.6 828.2 866.9 p: preliminary estimate However, there is prospect for blends of palm oil and soft oil to be promoted because of price competitiveness. Some of the successful blends of palm-based cooking oil already selling in the world market are SMART Balance, Soneri cooking oil that is sold in Pakistan and the Vege-Fruit Oil brand marketed by Nisshin Oillio Group, Ltd. in Japan. 6 • MPOC FORTUNE
2012f 1367.7 461.0 906.7
f : forecast
and fats produced meets about a third of the domestic requirement, making the country’s self-sufficiency about 33%. The major oils imported to meet the shortfall are soybean oil (33%), palm oil (36%) and sunflower oil (20%). South Africa’s edible oils and fats imports stood at 822,000 MT in 2007, of which palm oil import stood at 297,900 MT, with Malaysia and Indonesia being the main suppliers.
About half of the imported palm oil is in the form of RBD palm olein. Palm stearin and PFAD are the other major fractions imported. Each of these fractions accounts for 20% of the total oils and fats imported, with RBD palm olein used mainly for frying and margarine production. RBD palm stearin is basically to make solid fats, such as shortenings. A small proportion of RBD palm stearin imported is converted into stearic acid, which has wide application in the production of soaps and detergents. PFAD is mainly used to produce soaps and detergents. South Africa also imports a small quantity of finished palm oil products, such as shortening, soap noodles and margarine. South Africa’s production of oils and fats fluctuates, depending on price differences between oilseeds and wheat, as well as drought, which will affect the productivity of oilseed crops. Between 2004 and 2006, the country’s oils and fats production was stable, between 454,000 MT and 468,000 MT. However, production dropped to 373,200 MT in 2007 when drought affected local oilseed crop production. This left the country with no choice but to import more oils and fats to satisfy the supply-demand gap created that year. Moving forward, the country’s oils and fats production will not see significant change in years to come, with average yearly production estimated at 461,000 MT up to 2012. With the country’s oil and fats consumption growing at 3% based on the CAGR recorded for 2003-2007, South Africa’s oils and fats shortfall will rise to 906,700 MT by 2012, an increase of approximately 190,000 MT in the next 5 years. Again, due to its versatility and competitive price, palm oil is expected to rank superior to other soft oils to fill the shortfall. Although opportunities are available, there are constraints before new Malaysian palm oil exporters can tap the potential of rising demand in the country. As of now, it may be difficult for Malaysian suppliers to ship palm oil in bulk to South Africa as the shipping service is irregular, with current bulk shipment done on long term chartered vessels. These leave players, especially those from smaller scale exporters, unable to plan the schedule for shipment. Moreover, the availability of shore tank facilities at the terminal port is low as most of the terminals are contracted to the big oils and fats players such as Southcomm Africa on long-term basis. Hence, room for new and small players to venture into the South African oils and fats market will have to focus on consumer and industrial packed products such as cooking oil and margarine, which Lim / ED can be shipped in containers.
P ROD UCT F e at u r e
Caromin® Palm Mixed Carotene Complex The Only True Mixed Carotene Complex In The Market
Mr. WH Leong / Dr. Sharon Ling Carotech Bhd INTRODUCTION: CAROTENOIDS Carotenoids are fat-soluble pigments found primarily in fruits and vegetables. The carotenoids, whose name is derived from the fact that they constitute the major pigment in the carrot root, Daucus carota, are undoubtedly among the most widespread and important pigments in nature. They are present in numerous vegetable oils and vegetables/fruits such as carrots, leafy green vegetables, tomatoes, water melon, etc. These carotenoids impart an orangey-red colour to the vegetables and fruits. Of the more than 600 known carotenoids in nature, about 20 are found in human plasma and tissues. Palm oil contains the highest known concentration of naturally derived carotenoids. In fact, crude palm oil is the world's richest natural plant source of carotenes in terms of retinol (provitamin
A) equivalent. It contains about 15 to 300 times as many retinol equivalents as carrots, leafy green vegetables and tomatoes, which are considered to have significant quantities of provitamin A activity. Besides the well-known provitamin A activity of carotenoids, especially beta-carotene, consumption of carotenoid-rich fruits and vegetables has been associated with a reduction in risk of colorectal, lung, ovarian and other cancers. HISTORICAL USE OF FOOD COLORANTS The addition of colorants to food dated back to the Egyptian period when wine and natural plant extracts were added to candies to make them more attractive to children. Synthetic food colorants have been added to food products more than100 years ago, when food production became industrialised. WHY COLORANTS ARE ADDED TO FOOD & DRINK? Have we ever wondered why colorants are added to almost all processed food and drink? One of the main reasons is that “colour” reflects on the quality & freshness of food. In addition, consumers tend to associate a particular colour with a certain flavour. For example we all expect marmalade to be orange in colour and a kiwi fruit-flavoured drink to be green in colour. A strawberry ice cream will have to be none other than pink colour. However, processing and storage cause natural colour of the food to fade. Processed foods usually end up with an unattractive shade of beige or grey. In reality, colourless foods do not sell! Consumers also like their foods & drinks with the “right” and “same” colour consistently. Very few indeed would buy a brand of strawberry jam if every bottle is of a different colour. In nature, however, no two strawberries are of the exact same colour, even from the same plant. In order to achieve the desired colour in foods and drinks, colorants are added to provide consistent and vibrant colours that are resistant to fading. HEALTH CONCERNS OVER SYNTHETIC COLORANTS The most commonly used colorants in food production have been synthetic or artificial colorants. There is, however, emerging health concerns over the toxicity of their breakdown products. For example, in 2007, the European Union
suspended the use of the dye RED 2G due to its breakdown product aniline, which is carcinogenic. In fact, many synthetic colorants have been banned over the years for causing various health problems. Of particular concern is the association of synthetic colorants with abnormal childhood behaviour found in a landmark study commonly referred to as “Southampton Study”, which was carried out by researchers at the University of Southampton in United Kingdom. In essence, it evaluated 6 commonest synthetic food colorants (Sunset Yellow [E110], Carmoisine [E122], Tartrazine [E102], Ponceau 4R [E124], Quinoline Yellow [E110], Allura Red AC [E129]) and sodium benzoate [E211] as a preservative in 2 separate age groups of children (age 3 and age 8/9). These synthetic additives were found to increase hyperactivity among the children evaluated. The result from this study has far reaching impact on the processed food and drink industry. Following the publication of results from the “Southampton Study”, the UK Food Safety Authority (FSA) called for a voluntary ban of these six synthetic colorants. In July 2008, the European Parliament voted for a mandatory warning label that reads “consumption may have an effect on activity and attention in children” on food and drink products containing these synthetic colorants. This is expected to be in force by mid-2010, which is definitely not an attractive label that manufacturers want on their products. Thus, effectively putting a ban on all these six synthetic colorants from food and drink products in Europe. The European food industry is currently under growing pressure from all sides to remove synthetic colorants, replacing them with natural alternatives. It is inevitable that the tide is turning away from synthetic colorants and the same trend will soon be seen in US, Asia and other parts of the world. CAROMIN® PALM MIXED CAROTENE COMPLEX - A NATURAL ALTERNATIVE So, what are the alternatives? Out of the 6 banned Southampton colorants, at least 2 (Sunset Yellow and Quinoline Continued on page 10
MPOC FORTUNE • 7
MARKET Insights In s g Continued from page 5
Whither India’s Green Revolution
• Small/fragmented land holdings, making mechanisation difficult;
Various solutions have been put forward and considered over the years, but nothing has worked. An analysis of the Indian productivity levels vis-à-vis the levels achieved in other economies may provide clues. Indian productivity levels are way below the global average. Factors affecting productivity levels include:
• The absence of the corporate sector in agriculture, depriving it of much needed capital investment; and
sector. In light of the growing demand, in the words of India’s first Prime Minister Jawaharlal Nehru,
“everything else can wait …”
• Lack of availability of high-yielding crop varieties.
Bhavna
These reasons do not need elaboration. Policy makers face a dilemma overcoming these handicaps to the faster development of India’s oilseeds
India's Production of Cultivated Oilseeds 1999-00 to 2008-09 (MMT) Oilseeds
2008-09E 2007-08 2006-07
2005-06
2004-05
2003-04
2002-03 2001-02 2000-01 1999-00
Groundnut
5.92
6.89
4.86
7.99
6.77
8.13
4.12
7.03
6.41
5.26
Rapeseed & Mustard
6.70
4.79
7.44
8.13
7.59
6.29
3.88
5.08
4.19
5.79
Sesame
0.58
0.66
0.62
0.64
0.67
0.78
0.44
0.70
0.52
0.48
Soybean
8.90
9.46
8.85
8.27
6.87
7.82
4.65
5.93
5.28
7.08
Sunflower
1.15
1.46
1.23
1.44
1.19
0.93
0.87
0.68
0.65
0.69
Safflower
0.17
0.17
0.24
0.23
0.17
0.13
0.18
0.22
0.20
0.26
Niger
0.08
0.07
0.12
0.11
0.11
0.11
0.09
0.13
0.11
0.15
Linseed
0.13
0.18
0.17
0.17
0.17
0.20
0.18
0.21
0.20
0.24
Castor
1.02
0.91
0.76
0.99
0.79
0.80
0.43
0.65
0.88
0.77
Total
24.65
24.59
24.28
27.98
24.35
25.18
14.84
20.66
18.44
20.72
Source 1999 to 2006-07: GOI, 2007-08 to 2008-09: COOIT
MPOC FORTUNE • 9
PRODUCTFeature
Caromin® palm mixed carotene has similar composition as found in carrot 33% alpha-carotene, 65% beta-carotene and 2% of other carotene (ie gamma-carotene, lycopene, etc).
Continued from page 7
Caromin® Palm Mixed Carotene Complex Yellow) can be directly replaced with natural palm mixed carotene complex, which can give various shades of yellow to orange. Carotenoid is a large family of fat-soluble pigments found primarily in plants (e.g. leafy green vegetables, carrots, tomatoes). Some carotenoids such as beta-carotene and alpha-carotene act as precursor of vitamin A. Lycopene, lutein, zeaxanthin are carotenoids that do not have vitamin A activity but possess other health promoting properties. There are four main commercial sources of carotenoids, namely – synthetic beta-carotene, algal beta-carotene (from Dunaliella salina), fermentative beta-carotene (from Blakeslea trispora, a fungi) and palm carotene complex (from palm fruits, Elaies guineensis). Synthetic beta-carotene is an artificial colorant containing only a single form of isomer (all trans beta-carotene). Likewise, algal and fermentative beta-carotenes predominantly contain a single isomer (more than 96% beta-carotene). Both have negligible level of other carotenoids such as alpha-carotene, gamma-carotene, lycopene and other carotenoids. Refer to Table 1. In comparison, palm carotenoid complex is a truly wholesome fruit/food-based full spectrum natural carotenoid. Virgin crude palm oil contains the highest known concentration of natural carotenoids. Caromin® is the only true mixed carotene with highest level of alpha-carotene in the market. What is of interest is that only
APPLICATIONS & HEALTH BENEFITS OF CAROMIN® PALM CAROTENOID COMPLEX Caromin® natural palm carotenoid complex has been well accepted by the food and beverage industry as a natural colorant. It imparts a shade of yellow to orange colour to foods and drinks. It is widely used in the fatand dairy-processing industry to standardise the colour of margarine, butter, ghee, cheese and edible oil. It is used as a natural colorant in confectionery and convenience foods such as candies, gums, crackers, sauces, cookies and pastries. It is also widely used to replace synthetic colorants in the beverage industry. Besides its application as a natural food colorant, Caromin® natural palm carotenoid complex has also been used in dietary supplements, functional foods and drinks as well as cosmeceutical products. Alpha-carotene and beta-carotene have pro-vitamin A activity. Thus, Caromin® natural palm carotenoid complex-formulated products can claim vitamin A activity on their label. In addition, carotenoids show potential inhibition of cancer cell growth, including colon neoplasm and breast cancer cell. Epidemiological studies have showed high serum level of alpha-carotene and beta-carotene is associated with reduced risk of developing gastric cancer. This effect has been observed in Chinese, Swedish and Japanese populations.
UV-induced erythema and oxidative damage as well as photoaging. Carotenoids accumulate in the skin and protect the skin by quenching the singlet oxygen (a potent free radical) and prevent the expression of MMP-9, an essential step in skin photoaging. CONCLUSION Synthetic colorants such as quinoline yellow, sunset yellow and tartrazine do not posses any nutritional value. These are also associated with hazardous effects on health, including allergy and hyperactivity in children. Despite the potential health problems with synthetic colorants and the subsequent ban in various countries, particularly in Europe and possible ban in other countries, colorants remain an essential part of the processed food and drink industry. This will inevitably drive the increase in demand for natural colorants. Of the six banned Southampton synthetic colorants, at least two if not more can be replaced with Caromin® natural palm carotenoid complex, cost-effectively. Recent studies emphasise the importance of a broad spectrum of natural carotenoids in the diet. Caromin® natural palm mixed carotenoid complex is the only carotene source that offers this full spectrum carotenoid with the highest level of alpha-carotene, similar to the carotenoid composition found naturally in carrots. Foods/drinks and dietary supplement companies are replacing synthetic colorants (sunset yellow and quinoline yellow) or synthetic beta-carotene or single natural beta-carotene (algal and fermentative) with a true natural mixed carotene such as palm mixed carotenoid complex, as found naturally in vegetables and fruits.
Palm carotenoid complex is a potential photoprotective agent. Studies have showed its potential in protecting
Table 1: Comparison among various sources of carotenoids Caromin® Palm Carotenoid Complex
Algae βcarotene
Fermentative β-carotene
Synthetic β-carotene
Crude Palm Oil
Algae (D. salina) (B. trispora)
Fungus
Petroleum -based
Composition
33% α-carotene 65% β-carotene 2% other carotenoids
> 96% β-carotene
> 98% β-carotene
100% β-carotene
Cis & Trans Isomers
Cis & Trans
Cis & Trans
~ 100% Trans
100% Trans
Source
10 • MPOC FORTUNE
For more information, please contact: Carotech Bhd. Tel: +60(5)2014192 Fax: +60(5)2014213 Emails: carot3@aol.com (Mr. WH Leong) or sling@carotech.net (Dr. Sharon Ling) Websites: www.carotech.net
MPOC Offices Worldwide Malaysian Palm Oil Council (MPOC) 2nd Floor Wisma Sawit Lot 6, SS 6, Jalan Perbandaran 47301 Kelana Jaya, Selangor Tel: 603-7806 4097 Fax: 603-7806 2272 www.mpoc.org.my American Palm Oil Council Suite # 690, 21515 Hawthorne Blvd. Torrance CA 90503, USA Tel: +1 (310) 944 3910 Fax: +1 (310) 944 3544 www.americanpalmoil.com E-mail: kassim@americanpalmoil.com Contact: Mohd Salleh Kassim MPOC Africa Regional Office 5 Nollsworth Crescent, Nollsworth Park La Lucia Ridge Office Estate, La Lucia 4051, KwaZulu-Natal, South Africa Tel: +27 (31) 5666 171 Fax: +27 (31) 5666 170 E-mail: kumar@mpoc.org.za Postal Address: P.O.Box 1591 M.E.C.C. 4301, South Africa Contact: Uthaya Kumar MPOC Bangladesh 62-63 Motijheel Commercial Area, 7th Floor, Amin Court Building, Dhaka, Bangladesh Tel: +88 (02) 9571 216 Fax: +88 (02) 9551 836 E-mail: fakhrul@mpoc.org.bd Contact: Fakhrul Alam MPOC Shanghai, China Shanghai Westgate Mall Co. Ltd. Room 1610B, 1038 Nanjing Rd. (w) Shanghai 200041, P. R. China Tel: +86 (21) 6218 2085 / 6218 2086 Fax: +86 (21) 6218 1125 E-mail: teah@mpoc.org.cn Contact: Teah Yau Kun MPOC Pakistan 11 – 3rd Floor, Leeds Centre Main Boulevard Gulberg, 111 Lahore, Pakistan Tel: +92 (42) 5716 600 / 5716 601 Fax: +92 (42) 5716 602 E-mail: faisal@mpoc.org.pk Contact: Faisal Iqbal
ADVERTISING OPPORTUNITIES TM
Advertising in the Malaysian Palm Oil FORTUNE is probably one of the most economical methods of advertising. Discounts of 5%, 10% and 20% are available for placements of 3 months, 6 months and one year, respectively. For enquiries, please e-mail: fortune@mpoc.org.my or contact: Tel: 603-7806 4097 (Mr. Muhammad Kharibi Zainal Ariffin)
MPOC India S-4, New Mahavir Building, Cumballa Hill Road Kemps Corner, Mumbai 400 036 Tel: +91 (22) 6655 0755 / 6655 0756 Fax: +91 (22) 6655 0757 E-mail: bhavna@mpoc.org.in Contact: Bhavna Shah MPOC Europe Regional Office 31 Avenue Emile Vendervelde 1200 Brussels Belgium Tel: +32 (2) 7748 860 Fax: +32 (2) 7794 371 E-mail: zainuddin@skynet.be Contact: Zainuddin Hassan MPOC Cairo 3 Gamal E1-Din Afify Street, Nasir City Zone No.6, 11371 Cairo, Egypt Tel: +20 (2) 2273 8108 Fax +20 (2) 2273 8106 E-mail: kazmi@mpocegypt.com Contact: Kamal Azmi MPOC Istanbul Guzel Konutlar Sitesi Dilek Apartment Daire 3 Balmumcu, Besiktas - Istanbul, Turkey Tel: +90 (212) 2668234 Fax +90 (212) 2668236 E-mail: haznita@mpoc.org.my Contact: Norhaznita Husin