Development of Fats and Oils Industry with Reference to Margarine

By Nazri, M. M. | Economic Review, March 1994 | Go to article overview

Development of Fats and Oils Industry with Reference to Margarine


Nazri, M. M., Economic Review


Fats and oils have been the main food sources for human being from the time he was hunter. Fats and oils, whether the source is animal, vegetable or marine in origin represent the 9 CHL/g highest source of energy, 9 CHL/g, as compared to 4 CHL/g from protein and carbohydrate. In many societies, even today, the fatty food is still considered the choice morsel and offered to the honoured guest. The average energy in take from dietary fat currently ranges between 35 to 45 per cent in the developed countries as compared to 10 to 20 per cent of less in developing countries fats and oils may be of vegetable, animal and marine origin. Vegetable fats include such solid fats as cocoa butter and such liquid oil as corn oil, soyabean oil, cotton seed oil, peanut oil, olive oil etc. animal fats include lard, Tallow, Butter from milk fish oils include codliver oil, oils, from Menhaden.

Production of Oils

The increasing demand for fats and oils in the world are due to increasing population and rising standard of living. A production statistics for the period 1970-1980 shows an increase of 60 per cent in vegetable oil output, whereas animal and marine oil production was increasing in volume by only 9 per cent. The major four oil production, i.e. Soyabean, Palm, Rapeseed and Sun Flower Oils are largely responsible for these growth. Production of Soyabean has increased in United States, Brazil and Argentina in the 1970. Whereas the growth in Palm Oil output is primarily due to the extension of oil palm in Malaysia.

Rapeseed Oil production increased in Canada and a number of European countries, due to the growing new varieties of the seed that give an oil low in Eurucic Acid, as now widely required when the oil is to be used as food Rapeseed Oil rich in Euricic Acid is now produced mainly for industrial purposes. The potential for increase in production of cotton seed oil, is uncertain owing to the impact of synthetic fibers industry on the natural Fibres Market, as well as difficulties in pest and plant disease control.

According to a new International Trade Centre (ITC) publication the major feature of International Trade in oil seeds and oils in 1994 will be continuing, rapid growth of the role of developing countries in the production and consumption of notably palm based products (palm oil, palm kernel oil and palm kernal cake) Soyabeans, Soyabean Oil and Soyabean cake. Sun flower seeds, and the oil and cake, coconut based products (Copra, Coconut Oil and Coconut meal) ground nuts along with groundnut oil and cake and cotton seeds and related oil and cake.

Trade Prospects

United Nations Food & Agriculture Organization (FAO) in 1990 the world demand for fats and oils reached 77.6 million tons with 63.2 million Tonnes (81%) for food purposes and 14.5 million tonnes (19%) for other applications. About 38.6 million tons were consumed in developing countries and 39.0 million tonnes in developed countries. Per capita consumption of Edible Fats and oils world wide had been estimated 12.0 kg a year in 1990 (24.3) kg. in developed countries and 8.2 kg in developing countries). This compares with 22.7 kg and 7.2 kg respectively in 1980. Developing countries are among the leading import markets for oil seeds and vegetable oils and have registered expanding demand over the last several years.

The inability of domestic production in Pakistan to move up at the same rate as demand for oils has resulted in annual increase in oil imports. In this country major imports are palm oil and Soyabean oil. Due to increasing demand of Palm oil in Pakistan, the Malaysian investors agreed to setup first ever joint venture project with a group of Pakistani Businessmen for setting up of integrated Palm Oil storage and refining plant near Port Qasim, The proposed project is designed to refine about 300,000 tons of Palm Oil every year, of the total investment Malaysians are expected to contribute 60 per cent while the Pakistani Group of businessmen will provide 40 per cent equity. …

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