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(ICIS) -- After bottoming out in
September, the global fats and oils market is expected to see another upward
price cycle in 2012, led by projected lower production volumes and increased
consumption of biofuels, an industry consultant said on Wednesday.
“World fats and oils supplies are sufficiently ample until December 2011.
Expect soybean oil export from South America to be reduced because of higher
domestic consumption for biofuels," said Thomas Mielke, director of
Germany-based agriculture consulting firm ISTA Mielke.
Growing global dependence on palm oil for food use will rise in the next
several years, which will strain feedstock use for oleochemicals and biofuels,
Mielke said. About 76m–77m tonnes of palm oil will be required in 2020, compared
with 45.5m tonnes seen in 2010, he added. “This means an annual average palm oil
output growth of 3.1m tonnes will be needed worldwide. Indonesia has to bear
that increase in consumption demand, as Malaysia palm oil production is already
strained,” said Mielke.
As of 2010, biofuels already accounted for 12% of the global fats and
oils consumption, at 171.6m tonnes. Chemicals account for 4%, or 7.7m tonnes, of
global fats and oils’ use.
mrcplast.com
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