Prospects and challenges for sustainable palm oil in China

1. Prospects & Challenges of
Sustainable Palm Oil for China
Chen Ying
May 6,2011
China Chamber of Commerce for Imp. & Exp. of
Foodstuffs, Native Produce & Animal By-Products

2. Outline of the Draft Report
 Introduction
 China’s Vision and Strategy for Sustainable Development
 Global Palm Oil and China’s Situation
 Sustainable Palm Oil (SPO) Production & Consumption
 Business Case for Production, Procurement and Use of SPO
 Review of Initiatives on Promotion of SPO in China
 Policy Analysis and Recommendations
 Next Steps and Future Work
 Conclusion

3. Objectives of the FNA/DEFRA/DFID Study
 Provide strategic policy guidance for the
Chinese government towards the development
of sustainable palm oil.
 Facilitate the adoption of sustainable trade
policy with regard to palm oil in the upper
levels of Chinese government.
 Provide a business case for shifting to
sustainable palm oil that is relevant for
Chinese commerce.

4. Development history of palm oil

5. Production of world palm oil
Unit:10,000MT
14,000
12,000
10,000
8,000
6,000
4,000
2,000
-
1980 1990 2000 2009
Soybean oil Palm oil Rapeseed oil sunseed oil O ther oil

6. Consumption of world palm oil
Unit:1,000MT
50,000
45,000
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
-
1980 1990 2000 2009
Indonesia Malaysia Other

7. Changes in Palm Oil Export in the World and Major Countries

8. Changes in Palm Oil Export in the World and Major Countries
Unit:1,000MT
30,000
28,000
26,000
24,000
22,000
20,000
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
-
1961
1963
1965
1967
1969
1971
1973
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
Indones ia Malays ia O ther

9. Changes in Palm Oil Import in the World and Major Countries

10. Changes in Palm Oil Import in the World and Major Countries
Unit:1,000MT
32,500
30,000
27,500
25,000
22,500
20,000
17,500
15,000
12,500
10,000
7,500
5,000
2,500
-
1961
1963
1965
1967
1969
1971
1973
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
C hina India B anglades h P akis tan Holland Germ any O ther

11. -
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
11,000
1991/1992
Unit:1000MT
1992/1993
1993/1994
1994/1995
1995/1996
S oyoil
1996/1997
1997/1998
1998/1999
R apes eed oil
1999/2000
2000/2001
2001/2002
C otton oil
2002/2003
2003/2004
2004/2005
P eanut oil
2005/2006
Palm Oil Role in China’s Vegetable Oils Market
2006/2007
2007/2008
P alm oil
2008/2009
2009/2010

12. Changes in Total Imports of Palm Oil in China
U n it:1 0 0 0 M T
7 ,0 0 0
6 ,5 0 0
6 ,0 0 0
5 ,5 0 0
5 ,0 0 0
4 ,5 0 0
4 ,0 0 0
3 ,5 0 0
3 ,0 0 0
2 ,5 0 0
2 ,0 0 0
1 ,5 0 0
1 ,0 0 0
500
-
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009

13. Palm Oil Import Structure in China (2001-2009)
Unit: 10,000 MT
Crude Palm Liquid Palm Oil Palm Stearin Other Palm
Total
Year Oil (MP: 19-24°C) (44-56°C) Oil
2001 1.5 103.3 15.8 31.5 152.0
2002 0.9 155.9 52.6 12.7 222.1
2003 2.9 224.6 99.7 5.4 332.5
2004 0.6 234.0 146.7 4.4 385.7
2005 10.4 267.1 149.2 6.2 433.0
2006 65.6 350.0 92.9 5.6 514.1
2007 43.2 394.1 70.8 1.6 509.7
2008 58.4 403.6 63.5 3.1 528.6
2009 59.0 451.4 132.7 1.1 644.2

14. Palm Oil Import by Original Country in China
Unit:1,000MT
7,000
6,500
6,000
5,500
5,000
4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
-
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Malaysia Indonesia Other

15. Production, purchase & utilization of sustainable palm oil

16. RSPO Supply Chain Certification

17. RSPO Supply Chain Certification

18. RSPO Supply Chain Certification
RSPO Supply Chain Certification

19. RSPO Supply Chain Certification

20. Business Case for Production, Procurement and Use of Sustainable Palm Oil

21. Policy Recommendations
 Establish a National Policy Objective for Sustainable Palm Oil
 Establish a Market-based Certification Approach for Palm Oil
Traders, Food Processors, and Industrial Users
 Support Domestic Awareness-raising and Demand for Sustainable
Palm Oil
 Issue Regulations Governing Environment and Sustainable
Development Requirements for Chinese Overseas Investment and
Operation of Chinese Enterprises Abroad
 Initiate a Program to Address China’s Ecological Footprint
Related to Agricultural, Forest and Fisheries Commodity Imports

22. Initiatives Already Undertaken to
Promote SPO in China
 WWF China’s effort in raising awareness under the global FCI
programme and engagement of Chinese companies (COFCO); WWF MTI
Palm Oil Strategy for China
 CFNA involvement in RSPO process since 2008 (Study tours &
presentations and stakeholder meetings at RT6 to RT8)
 Special session & dialogue at CFNA Oils & Oilseeds Summit, 2009
 CFNA & WWF China established Network for Promoting SPO in China
in 2009 (10 signatories)
 CFNA Stakeholder Engagement during RSPO RT8 in Jakarta, Indonesia

23. Thank you !