Webinar On Potential of Sustainable Palm Oil in Pakistan

Pakistan Edible Oil Industry & Potential for Sustainable Palm Oil

Faisal IqbalDirector, Marketing & Market Development

Malaysian Palm Oil Council

Presentation Outline

Analysis of consistent increase in

consumption and availability of sources

Oils & Fats Consumption 01 Total imports of edible oils and fats and

share of palm oil

Imports of Oils & Fats02

Gradual decline in self sufficiency of oils

and fats production in Pakistan

Self Sufficiency03 Impact of climate change and Pakistan’s

commitment to SDGs

SDGs Pakistan 04

Potential of sustainable palm oil in

Pakistan market

SPO Potential 05 Malaysian Sustainable Palm Oil and its

benefits

Why MSPO 06

Pakistan Oils & Fats Scenario

20 Year Analysis of Self Sufficiency & Consumption

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

1,3

88

,90

2

16

74

43

3

14

74

45

0

1,7

11

,10

4

1,6

13

,90

2

1,8

12

,12

3

1,8

96

,00

6

1,8

45

,34

8

1,8

11

,094

2,3

15

,13

0

2,5

11

,55

3

2,4

94

,52

6

2,3

62

,97

2

2,6

65

,61

4

2,7

73

,93

4

3,2

24

,54

8

3,3

64

,23

3

3,9

64

,41

6

3,9

70

,13

0

3,9

27

,334

3,8

51

,59

2

56

7,0

00

60

6,0

00

64

1,0

00

74

0,0

00

72

5,0

00

79

3,0

00

85

7,0

00

81

0,0

00

83

3,0

00 77

8,0

00

66

2,0

00

69

6,0

00

63

6,0

00

56

7,0

00

57

3,0

00 55

6,0

00

46

2,0

00

45

0,0

00

50

8,0

00

50

0,0

00

50

7,0

00

Imported oils & fats Oil from local oilseed crops

Source: Economic Survey, Port Data, MPOB

Major Oils & Fats Consumed 2000 vs 2020

Palm Oil

2,941,173

Palm Fats

113,490

Soybean

Oil 94,238

2020

Palm Oil

1,086,573

Soybean

Oil 165,691

Tallow

87,738

Rapeseed

oil, 22,600Sunflower

oil, 16,700

2000

Source: Economic Survey, Port Data, MPOB

5 Years Edible Oil Consumption

Crop2016 (MT)

2017 (MT)

2018 (MT)

2019 (MT)

2020 (MT)

2021 F (MT)

Locally Produced Oil (Cotton/Sunflower) 462,000 446,000 508,000 500,000 507,000 550,000

Oil from Imported Oilseeds 712,790 802,553 830,998 705,374 702,691 734,304

Imported Oils & Fats(Palm /Soybean) 2,651,443 3,161,863 3,139,132 3,221,959 3,148,901 3,330,907

Total 3,826,233 4,414,416 4,478,130 4,427,334 4,358,592 4,615,211

Source: Port Data, MPOB

Sustainability Goals

According to German Watch, Pakistan has been ranked globally in the top ten countries most affected by climate change in the past 20 years owing to its geographical location.

Among top 10 most vulnerable countries 01

The Government has launched the Eco-system Restoration Initiative (ESRI) for facilitatingthe transition towards environmentally resilient Pakistan. These include afforestation, biodiversityconservation, enhancing policy environment consistent with the objectives of the country.

Government’s Efforts 02

Pakistan contributes less than 1 percent of the world's greenhouse, yet its 220 million people are among the world's most vulnerable victims of the growing consequences of climate change.

< 1% contribution to GHG

Impact of Global Warming on Pakistan

Sustainability Development Goals

17 SDGsPakistan is committed to

UNs agenda to end poverty,

fight inequality and

injustice, and tackle climate

change by 2030.

SDGs Priorities in Pakistan

Priority 1

Priority 2

Priority 3

Pakistan has localized the SDGs andprioritized them to the local need andenvironment

The seven pillars of Vision-2025 are fully aligned withthe SDGs, providing a comprehensive long-termstrategy for achieving inclusive growth andsustainable development.

MSPO and its Contributions

MSPO’s principles are inline with the UN SDGs

Source: MPOCC

offers affordable certification, marketaccess to ALL involved in the industryespecially the small farmers

Fair01

can be traced to its source throughMSPO-Trace. With enoughparticipation, can be integrated withretail system for consumers

Traceable02

Why MSPO

covers the needs of its people andpartner countries vs corporationinitiative (image / profit focused)

Govt. Initiative03

Source: MPOCC

Sustainable Palm Oil Potential inPakistan

Approximately 70% of palm oil imported in Pakistan is used for producing vanaspati and blended cooking oils and 20% is used in organized and unorganized food sector.

70:20 Usage Ratio

Pakistan is still a predominantly solid fat consuming country. Nearly 65% of the population prefers vanaspati as their cooking medium. This sector is price sensitive and so far, has not shown any inclination towards securing CSPO.

CSPO Demand in Ghee & Oil

MNCs like Nestle, Unilver, PepsiCo, P&G, etc have increasingly buying CSPO and demand is gradually increasing. According to an estimate, the total demand for CSPO in Pakistan currently is 4500 MT – 5000 MT. Buyers are paying USD 20 premium on MB and USD 40 premium on SG.

CSPO Demand in Food Sector

Thank Youfaisal@mpoc.org.mywww.mpoc.org.my