China palm oil demand set to grow 10% a year

09 September 2008 13:46  [Source: ICIS news]

SINGAPORE (ICIS news)--Palm oil consumption in China is estimated to grow at an annual rate of 10% which will see the country retain its lead as the world’s biggest global importer of the popular vegetable oil, an official from the Malaysian Palm Oil Board (MPOB) said on Tuesday.

 

The country’s growing population, increase in household income and burgeoning demand from its oleochemical and biodiesel sector would continue to drive demand, said the MPOB’s Faizah Mohd Shariff at the 2008 World Oil and Oilseeds convention here.

  

China’s demand for palm oil had grown significantly since 1998, with total imports hitting 5.5m tones last year, Shariff said.

 

“Palm oil consumption is expected to increase 10% per annum in China. Imports [of the edible oil] are likely to maintain the upward trend in the years to come,” Shariff said.

 

China, along with India and the rest of the Asia-Pacific, offered “lucrative growth opportunity, particularly in palm oil intake”, she said.

 

The palm oil industry had experienced rapid growth in a decade driven by food demand and also because palm oil offered a cheaper alternative to rapeseed and soyabean in biofuel production, she added.

 

As of last year, palm oil accounted for the biggest slice of world oil and fats production, making up a quarter of the total, Shariff said.

 

The convention runs until Thursday.

 

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By: Pearl Bantillo
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