Key statistic and information on Edible Oil sector i Pakistan with RBO

1. PAKISTAN
RBO - COUNTRY REPORT
4TH ICRBO 2017 - BANGKOK
Asif N. Ansari
August 24-25, 2017

2. PAKISTAN- KEY DATA
Key Statistics:
• Sixth Largest Population (2016) 202 Mn
• 36% under the age of 14 year
• Total Area 881,931sq.Km
• GDP PPP (2016)
• Total US$ 984 Bn
• Per Capita US$ 5084
• GDP Contribution:
• Agriculture 25.3%
• Services 53.1%
• Manufacturing 21.6%
• 5th largest producer of Cotton
• 3rd largest exporter of Rice
"Pakistan GDP – composition by sector". Index Mundi – Country Facts. Retrieved 27 November2014.
ADB published report
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3. PAKISTAN
EDIBLE OIL SECTOR
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4. PAKISTAN - KEY EDIBLE OIL STATISTICS
- Total Edible Oil Consumption 3.7 Mn MT
- Imported Edible Oils 2.6 Mn MT
- Local Manufacturing 1.1 Mn MT
- 3rd Largest Importer of Edible Globally
- Per Capita Consumption 16 Kg
- Consumer Preference
- Ghee / Bansapati/ Fats 72%
- Edible Oil 28% Monthly Income Split:
- Food & Beverages …..45%
- Edible Oil contribution...10%
4
0 0 0 10 0 0
0
2
2 3 3
0
0.5
1
1.5
2
2.5
3
3.5
2013 2014 2015 2016
EDIBLE OIL CONSUMPTION, X 1000
TONS - 2016

5. PAKISTAN- EDIBLE OIL INDUSTRY
Imported
Edible Oil
72%
From Imported
Oil seed
13%
From Local Oil
Seeds
15%
Other
15%
Edible Oil Trend
4 years Average
Imported Edible Oil
From Imported Oil seed
From Local Oil Seeds
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6. PAKISTAN-TOTAL EDIBLE OIL IMPORTS
2.5 MN TON AVERAGE
6
rbdOlei
n
47%
rbdPO
42%
CPO
6%
cdSBO
5%
IMPORT TREND 4 YEARS AVE
2,100,000
2,200,000
2,300,000
2,400,000
2,500,000
2,600,000
2,700,000
2013 2014 2015 2016 AVE
2,311,259
2,443,967
2,699,406
2,570,130
2,506,191
Edible Oil Imports, TONS - 2016

7. PAKISTAN- EDIBLE OIL INDUSTRY
• 87 Solvent Extraction Plants with a combined
Crushing capacity of 1.2 Mn tonnes of seed.
• 120 Edible Oil Licensed Manufacturing Units with
combined production capacity of over 3.6 Mn
tons of Oil/Fats and Margarines.
• 3 RBO processing units
• ONE DEDICATED TO RBO ONLY
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8. PAKISTAN- MAJOR OIL SEED CROPS - 2016
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Cotton
Seed
78%
Rape
Seed
5%
Sunflower
Seed
2%
Canola
Seed
0%
Rice Bran
15%
PAKISTAN- OIL SEED CROPS
4 YEARS AVERAGE
Production of Major
Oil Seed Crops
1000
MT
2013 2014 2015 2016
Cotton Seed 3,324 3,592 3,450 2,966
Rape Seed 216 189 210 202
Sunflower
Seed
244 190 182 92
Canola Seed 16 16 17 16
Rice Bran 544 552 536 552
4,344 4,539 4,395 3,828

9. PAKISTAN- SEED IMPORTS
1.4 MN TON AVERAGE
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Rape
Seed/C
anola
63%
Sunflower
Seed
10%
Soya Bean
Seed
27%
SEED IMPORT TREND 4 YEARS AVE
0
500
1,000
1,500
2,000
2,500
2013 2014 2015 2016 AVE
720
1,185
1,417
2,214
1,384
Oil Seeds Imports, TONS - 2016

10. PAKISTAN- TOT. OIL FROM OIL SEEDS
1.1 MN TONS
Oil from Seed (Imp & Loc) x 1000 MT
3 years Average
10
Production of Oil from
Seed
x 1000 MT
2013 2014 2015 2016
From Imported
Seed
283 464 422 652
from Local
Seed
567 573 546 464
Total from
Seeds
850 1,037 968 1,116

11. PAKISTAN- EDIBLE OIL PRICE TREND
US $ = Rs.105
Key Factors influencing the Price:
• Forex Movements
• Import Duties
• International trading
• Regulatory taxes on Mills output
• Local Crop & Oil stocks
• Domestic economic implications
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0
50
100
150
200
250
1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018
Rs/li
Period
Cooking Oil Price Trend, Rs/li

12. PAKISTAN
RBO
STATUS & POTENTIAL
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13. PAKISTAN- RICE STATISTICS
0
1000
2000
3000
4000
5000
6000
7000
2012 2013 2014 2015 2016 Est
Milled Rice Production
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
2012-13 2013-14 2014-15 2015-16 2016-17
PAKISTAN - RICE EXPORTS
INDIA
30%
PAKISTAN
12%VIETNAM
20%
THAILAN
D
28%
USA
10%
RICE-MAJOR EXPORTERS 5 YR
AVERAGE
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14. PAKISTAN- RBO POTENTIAL
APPROX 90,000 MT CRUDE
14
0 100 200 300 400 500 600
2012
2013
2014
2015
2016 EST
2012 2013 2014 2015 2016 Est
Rice Bran Available 442.88 543.84 552 536 552
PAKISTAN-Rice Bran AvailabIility,
1000 MT

15. PAKISTAN-OIL FROM LOCAL SEED
537,400 MT
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wCSO,
356 , 77%
RPO, 65 ,
14%
SFO, 35 ,
8% Canola
Oil, 6 ,
1%
RBO, 2 ,
0%
Oil from Local Seed - FY 2016Production of Oil from
Available Seed
x 1000 MT
2013 2014 2015 2016
AVERA
GE
wCSO 400 431 414 356 400
RPO 66 60 58 65 62
SFO 95 76 68 35 69
Canola Oil 6 6 6 6 6
RBO 0.18 2 0
567 573 546 464 537

16. Imported Brands:
- Kings from Thailand, Rs. 1200/li
- Falak from India, Rs. 550/li
Domestic Bran
- Seasons Rice Bran Oil
Rs. 250/li
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17. PAKISTAN –
PIONEERING RBO PROJECT
Oil Contents from Bran:
Depending on Rice Variety
& Season
16% to 23%
RBO specific:
14 Acre site
Extraction Cap: 400 tpd
Refining Cap : 100 tpd
Cogeneration from Husk
1.7 MW / 16 tph steam
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18. PAKISTAN- RBO EXPERIENCE
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
0 10 20 30 40 50 60 70 80 90
FFAContent %
HoursFFA Content
Oil Contents from Bran:
Depending on Rice Variety
& Season 16% to 23%
For Current Season : 8 to 16%
(Ave 14%)
Production
Bran Processed = 18,480 MT
Crude RBO = 2,995 MT
Crude sale = 155 MT
Refined RBO = 1,515 MT
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19. PAKISTAN- CHALLENGES
 Rice Bran Quality Assurance (Adultration)
Bran Sourcing
Bran FFA variation
RBO product awareness
RBO Product Quality awareness
RBO pricing to Bulk user (discount over other oils)
DOB pricing
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20. PAKISTAN- RBO CHALLENGES
 Cross between two industries: edible oil and rice milling
 Not a natural integration play — rice millers have incentive to expand horizontally
 In order for a rice miller to vertically integrate, the rice mill would need a huge capacity
to support a small RBO plant
 Lack of technical expertise
 Preparatory, Extraction & Refining – In the past RBO failed due to Hi Color & FFA
 Complex Bran supply Chain
 Limited Capacity of miller / sheller
 Bran handling and storage at miller end
 Timely transportation
 Adulteration with Husk and sand
 High set-up costs ~PKR1bn
 Consumer & Industrial user- The B2B edible oil business values it at par with Palm Oil.
 No consumer awareness of RBO
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21. PAKISTAN- DOB CHALLENGES
Aflatoxin: Poultry demands 20ppb max and dairy industry accepts below 50ppb
Pricing—
 Perceived as alternative to corn and other cereal ingredient.
 Sells at 30 to 50% Discount over Bran
Feed Millers and Dairy Farms reservations
 DOB Quality– In past DOB failed due to High Fiber (25%++), Ash and & FFA
 Past experience of Adulteration with Husk and sand
Vet Doctors / recipe owners perceptions
 Considered low cost filler in Dairy and Poultry industry
 Seasonal availability - feed formulations require frequent changes
Storage implications
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22. THANK YOU
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