Post on 31-Jul-2020
transcript
Market Outlook for Malaysian Palm Oil Within
North Africa
Focus on Egypt
The Region of Africa
The Five Sub-Regions of Africa
The North Africa Sub-Region
Overview of North Africa
Population (Millions) Oils & Fats Per Capita Consumption in 2017
(Kg)
2017 GDP per capita (current US$)
2012 2017
Egypt 77.2 97.5 23.4 3,304
Algeria 32.9 41.3 21.5 5,532
Morocco 33.0 357 22.1 3,291
Tunisia 11.4 11.5 31.5 4,415
Libya 6.3 6.3 28.0 2,903
TOTAL 150.8 196.0 - -
Global - - 28.35 -
Source : IMF, Oilworld, Worldbank
Source :Oil World
Major Productions
2017(‘000 MT)
Soybean Oil
Sunflower Oil
OliveOil
Egypt 336 31 22
Algeria - - 80
Morocco 15 15 135
Tunisia 91 - 144
Libya - - 17
TOTAL 442 46 3980.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
2012 2013 2015 2016 2017
Ratio
(%)
('000
MT)
Production Consumption Ratio (%)
North Africa : Oils & Fats Production-Consumption
North Africa : Major Oils & Fats Consumption (2017)
0
500
1000
1500
2000
2500
Egypt Algeria Morocco Tunisia Libya
('000
MT)
Palm Oil Soybean Oil Sunflower Oil Olive Oil Corn Oil
Source :Oil World
q The largest palm oil user is Egypt.q Food manufacturing and food service sectors are the primary users.
q Major imports are soybean oil, followed by palm oil, sunflower oil and corn oil.
-
500
1,000
1,500
2,000
2,500
2012 2013 2014 2015 2016 2017
('000
MT)
Palm Oil Soybean Oil Sunflower Oil Corn Oil Others
Total Oils & Fats Import
North Africa : Oils & Fats Import
Source :Oil World
Palm Oil, 74%
Palm Kernel Oil, 12%
Oleochemical, 9%
Finished Products, 5%
North Africa : Malaysian Palm Oil & Palm Products Exported (2017)
Source :MPOB
EGYPT Oils & Fats Scenario
A Growing Market
q Egypt’s population forecast to reach 100 million by 2021q Growing market for food and agricultural products.
Egypt : Oils & Fats Supply-Demand
0
500
1000
1500
2000
2500
2012 2013 2014 2015 2016 2017 2018E
('000
MT)
Production Import Consumption
Linear (Production) Linear (Import) Linear (Consumption)
Source :Oil World, National Statistics Institution of Egypt
Limited Local Production
0%
5%
10%
15%
20%
25%
30%
0
500
1000
1500
2000
2500
2012 2013 2014 2015 2016 2017 2018E
Ratio
(%)
('000
MT)
Total Consumption Total Production Ratio
q Increasing demand for oils and fats supply.q Local production can only fulfill 20% to 30% of domestic demand.
Egypt : Oils & Fats Production-Consumption Ratio
Source :Oil World
0
500
1000
1500
2000
2500
2012 2013 2014 2015 2016 2017
(‘000 MT)
Sunfloweroil Palm oil Soybean oil Others
q Palm oil accounted for 40 % to 50% of total imports.
Gap Filled by Imports
Egypt : Oils & Fats Imports
Source :Oil World
Palm Oil Scenario
0
200
400
600
800
1000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
('000
MT)
Palm Oil Import IPO MPO
Egypt : Palm Oil Import
Source :Oil World
No By-Products Category Tonnes
1 RBD Palm Olein Palm Oil 95,948.7
2 RBD Palm Stearin Palm Oil 35,371.8
3 RBD Palm Oil Palm Oil 32,712.6
4 Crude Palm Olein Palm Oil 21,740.0
5 Soap Noodles Oleochemical 10,747.3
6 RBD Kernel Olein Palm Kernel Oil 7,439.1
7 Glycerine Oleochemical 7,406.5
8 HRBD Palm Kernel Stearin Palm Kernel Oil 7,328.9
9 Shortening Finished Products 5,763.0
Malaysian Palm Oil and Palm Products Exported to Egypt (2017)
Source : MPOB
EGYPTOils & Fats Industry
q Afia International Co under Savola Group lead edible oils market share followed by ArmaFood Industries.
q Both companies dominated more than 50% of the market.
3.2
4.1
4.1
4.1
5.8
6.7
27.6
28.7
0 10 20 30 40
Misr Gulf OilProduction
Lesieur SAS
Borg El Arab
Binzagr Co
Al Motaheda
Iffco Egypt SAE
Arma FoodIndustries
AfiaInternational…
Share (%)Source : Euromonitor
Company Shares in 2017 (%)
Egypt : Company Shares (%)
q The most popular channel for Egyptians to buy oil products is at small grocers compared to hypermarkets or supermarkets.
Distribution Channels for Edible Oils in Egypt
Traditional Grocery Retailers (92.2%)Modern Grocery Retailers (7.8%)
Source : Euromonitor
% Breakdown of Store Based Retailing
Company Refining Capacity MT/Day
Arma Food Industries 1000
Iffco Egypt S.A.E. 1000Savola Egypt 1000
Ajwa for Food Industries 600Integrated Oil Industries (IOI) 600
El Fares El Arabi 300
Borg AlArab 200Al Asher for Projects - El Nada 200
Food Industries Holding Co. ( 6 affiliates) 1100
Refining Capacity
Source : MPOC Egypt
q There is zero duties for all crude and refined oils utilised in industrial usage.
Tax Structure
Types of Oils Import Duties
For industrial usageAll crude and refined oils
0%
For retails*All crude and refined oils
2%
* Retail sales for packaging less than 20kgSource : MPOC Egypt
Market Prospects in Egypt
Issuesq Currency devaluationq Different preference from
high-income consumers
Issues & Opportunities
Opportunitiesq Increasing import volume despite
increasing pricesq Competitive price of palm oil compared
to other edible oilsq Well-developed industrial sectorq Growth in food industry
q Strong demand for packaged foodq Higher income consumers
preference towards foodserviceq Increasing number of working
womenq Established international FMCG
manufacturersq Low exchange rate
Growth in Food Industry
Source : Euromonitor
q Rising demand after increase of prices of butter and cooking fats.
q Less expensive.q Considered as reasonable substitutes.q Extensive promotions and advertising
campaign.
Margarine and Spreadsq Cheese industry recorded a volume
growth of 9% in 2017.q One of top exports - processed cheese.q 200 thousand tonnes of vegetable oil in
cheese production.q Major cheese manufacturers – Arabian
Food Industry and Obour Land
Cheese Industry
(‘000 MT) 2013 2014 2015 2016 2017
Total CheeseProduction 671.4 679.3 686.9 692.4 720.0
Palm Oil Usage 155 158 176 188 200
% of Palm Oil Usage 23.1% 23.3% 25.6% 27.2% 27.8%
Source : Euromonitor, MPOC Egypt
Growth in Other Food Sectors
q MPOC Egypt based in Cairo.
q Promotional activities.
q Networking with industry players and
government affiliates.
q Educational campaigns.
MPOC Efforts
q Full of potentials
q Central and strategic location
q Increasing demand
q Positive measures by the Government
Conclusion
Thank You