World demand and supply of palm oil by the year 2000

Abstract

The position of palm oil in the world's oils and fats scenario for the year 2000 is projected to be improving. Expansion in the demand (and supply) of palm oil is projected to be faster than the rate of expansion of all oils and fats on average. This paper attempts to highlight this favourable position of palm oil, especially from Malaysia, in the world's oils and fats market for the year 2000.

The world demand for oils and fats is expanding at 2.56% per annum from 73 million tonnes in 1987 to 104 million tonnes in the year 2000 (Oil world, March 1988). Some 31 million tonnes of additional oils would be required within the next 14 years, which equate to 2. 2 million tonnes of additional oils and fats per year from now on.

The above scenario (scenario 1) provides a rosy picture for market demand for oils and fats, particularly palm oil. By the year 2000, palm oil share of world's oils and fats consumption would be 17% from 10% in 1985, and 4% in 1960. Soyabean oil's share would be stagnant at 21% in the year 2000 compared with 21% in 1985 and 11% in 1960 (Fig . 1)

According to Oil World, the market for the future lies in China and India , and the rest of the developing countries, while the markets from the EEC and other developed countries are stagnating (Fig. 2) .