The South Korean palm oil market growth may take a boost given palm oil's versatility and attributes utilised for food and non-food purposes. "I am optimistic that palm oil used in households, oleochemical companies and South Korea's biodiesel industry will continue to increase," said Minister of Plantation Industries and Commodities Tan Sri Bernard Dompok here Tuesday.
In his keynote address at the Malaysia-Korea Palm Oil Trade Fair and Seminar (POTS) 2011, he said South Korea's biodiesel mandate which stipulates a biodiesel blend of two per cent from 2012 offered potential to further strengthen imports of palm oil for biodiesel production. "South Korea has demonstrated wide market acceptance for palm oil and this is reflected by the amount of oil consumed domestically," he said.
In 2010, palm oil exports from Malaysia to South Korea constitutes a market share of 32.2 per cent of oil imported into Korea, comprising exports of 881,180 tonnes of palm oil and palm-based products valued at US$362.6 million (RM1.28 billion). The exports recorded an increase of 25.5 per cent from RM1.02 billion recorded in 2009.
Previously, palm oil made limited inroads into the cooking oil markets in all temperate countries due to its physical properties. However, with blending and new technologies being developed, palm oil is now gradually making its way into the kitchens of South Korean households.
"It was made known to me that a brand by the name of Novelin, which incorporates a blend of palm olein and rapeseed oil, has been introduced into the market since last year. "This marks the beginning of an exciting chapter in South Korea's palm cooking oil industry," Dompok said.
He also urged private sectors of both countries to explore existing opportunities as well as new areas in the use of palm oil for food and non-food purposes. "South Korea's oils and fats market has been growing steadily over the past 10 years, at an average rate of 5.5 per cent per annum, and Malaysia is honoured to be part of this growth," he said.
Source: oilpalm
