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Malaysian Palm Oil: Excellent Ingredient for Food and Cosmetics Industries in the

Philippines

Dr. Ahmad Kushairi Din Deputy Director-General (R&D)

Malaysian Palm Oil Board

Malaysia-Philippines Palm Oil Trade Fair & Seminar (POTS) 2015

Makati Shangri-La Hotel, Manila, Philippines

6-7 August, 2015

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Presentation outline

1. Introduction to MPOB and

Malaysian Palm Oil Industry

2. MSPO – Certified palm oil as

sustainable ingredient

4. Palm oil for Cosmetics Applications

5. Conclusion

3. Palm oil as premium and healthy oil

for food applications

Malaysian Palm Oil Board (MPOB)

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Ministry of Plantation Industries and Commodities

1 May 2000

Pioneering research and development, providing

scientific and technological infrastructure

To enhance the well-being of the Malaysian oil palm industry

through research, development and excellent services &

enforcement

PORIM PORLA

Enforcement & Licensing R&D

Major Roles • Serve the oil palm industry through

R&D activities • Enforcement & Licensing • Provide training • Commercialization of new technologies • Create market access for palm oil • Resource & Information center

Malaysian Palm Oil Board (MPOB)

MPOB/UKM, Bangi Wisma Sawit, Kelana Jaya

MPOB-HQ, Bangi

Palm oil 30%

Soybean oil 23% Rapeseed oil

14%

Sunfloweroil 8%

Tallow & Grease 4%

Lard 4% Butter,as fat 4%

Palm kernel oil 3%

Cotton oil 2%

Others 8%

Palm oil Soybean oil Rapeseed oil Sunfloweroil Tallow&Grease Lard Butter,as fat Palmkern oil Cotton oil Others

World Production of Oils & Fats, 2014

200.24 mil tonnes total world production of 17 oils & fats

6

0

20

40

60

80

Palm Oil 2014 (mil t) Jan-March 2015 (mil t) • Total production 175.65 62.44 • Domestic Consumption 173.27 60.73 • Total Import 67.94 43.03 • Total Export 70.91 44.60 • Ending stock 17.66 7.34

Pro

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20

15

62.44

47.37

26.98

15.16

Global Production of Vegetable Oils January-March 2015

62.441 mil tonnes Total Production

Global Palm Oil Production

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Indonesia: 53% Malaysia: 33%

Others 7% Thailand: 4%

Colombia: 2%

Nigeria: 1%

So

urc

e:

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reig

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erv

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SD

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Off

ice

of

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aly

sis,

Ma

rch

20

15

Major Importers of Palm Oil, 2014

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

8

‘00

0 T

on

ne

s

6.1 mil

8.9 mil

7.0 mil

Sou

rce:

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reig

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ure

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vice

s, U

SDA

, O

ffic

e o

f G

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ysis

, M

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9

Oil Palm Planted area in Malaysia

0.00

1.00

2.00

3.00

4.00

5.00

6.00

0.06 0.26

1.02

1.98

3.38 3.50 3.80 3.88

4.05 4.17 4.31

4.49 4.69

4.86 5.00 5.08

5.23 5.39

Mill

ion

hec

tare

s

Year

Source : MPOB

Crude palm oil production in Malaysia

Source : MPOB

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

0.1 0.4

2.6

6.1

10.8 11.8

13.4 14.0

15.0 15.9 15.8

17.7 17.6 17.0

18.9 18.8 19.2

19.70

Mill

. To

nn

es

Year

Export of Malaysian palm oil to

The Philippines

Year China Pakistan EU India USA Philippines Others

2010 3,483 2,135 2,064 1,170 1,028 204.7 6,466

2011 3,982 1,821 2,006 1,668 1,055 512.2 7,105

2012 3,502 1,343 2,221 2,640 1,029 285.2 6,475

2013 3,699 1,428 2,331 2,325 1,012 206.9 6,971

2014 2,839 815 2,411 3,675 783 493.7 6,408

Volume in thousand tonnes

598,608 tonnes Total palm products exported

to the Philippines in 2014

82% or 493,700 tonnes

was palm oil

Palm Oil 82%

Philippines Imports of Malaysian palm products,

2014

Total 598,608 tonnes

Palm Kernel Oil : 2%

Palm Kernel cake: 2%

Oleochemicals: 12%

Finished Products: 2%

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Standard of the Malaysian Sustainable Palm Oil

(MSPO)

• A National standard on sustainability

– applicable to all categories of oil palm industry covering small,

medium and large plantations

• A standard that

– that complies with Malaysian laws,

– ratified with international agreements/ conventions to ensure

that all oil palm premises in Malaysia are certified sustainable

• A Standard that is based on the pillars of sustainability

– people, planet and profit.

What is MSPO?

About MSPO

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The MSPO document consists of four parts:

• MSPO Part 1: General Principles for Malaysian Sustainable Palm Oil

• MSPO Part 2: Independent Small holders

• MSPO Part 3: Oil Palm Plantations and Organized Smallholders

• MSPO Part 4: Palm Oil Mills

• A government initiative

• Announced in Sept 2013

• Implemented in Jan 2015

• A dynamic scheme – continuously improved to ensure current

issues on sustainability are addressed.

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MSPO: Current Status

Other Certification Systems • International Sustainability and Carbon

Certification (ISCC) – Germany

• Round Table on Sustainable Palm Oil (RSPO) – business-to-business arrangement

MSPO Certified Premises (as at Aug 2015)

Palm Oil Estate 8

Palm Oil Mill 6

Smallholders 2

New Applicants 25

MSPO certifications are carried

out by Certification Bodies (CB), now through MPOB, later the

Malaysian Palm Oil Certification

Council (MPOCC)

Production of CSPO under RSPO

17

0

1000000

2000000

3000000

4000000

5000000

6000000

World production of CSPO by country, 2014

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

2014 2013 2012 2011 2010 2009 2008

Ton

ne

s

World production of CSPO, 2008-2014

Ton

ne

s

12.65 mil tonnes total CSPO, as of June 2015

CSPO = certified sustainable palm oil

• Food • Non-food • Biomass (non-energy) • Renewable Energy

Uses of palm oil products

Uses of Palm Oil

Palm oil as premium and healthy oil

for food applications

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Fatty Acid Composition of Selected

Vegetable Oils

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% F

att

y A

cid

Palm Oil: A healthy and cost-effective dietary component

Abstract:

Palm oil is an excellent choice for food manufacturers because of its nutritional benefits and versatility. The oil is highly structured to contain predominantly oleic acid at sn-2 position in the major triacylglycerols to account for the beneficial effects described in numerous nutritional studies.

A.S.H. Ong and S.H. Goh

Institute of Advanced Studies, University of Malaya, Kuala Lumpur, Malaysia

sn-2 C18:1

GL

YC

ER

OL

BA

CK

BO

NE

sn-3 C16:0

sn-1 C16:0

Food Nutr. Bull. 2002 Mar:23(1):11-22

Palm Oil: a healthy and cost-effective

dietary component

• FAO and WHO have endorsed palm oil as meeting food standards under Codex

Alimentarius Commission Programme

• Palm oil is healthy and save for consumption

• Palm oil contains almost equal amounts of

unsaturated and saturated fatty acids. In

the body, palm oil behaves more like a monounsaturated oil and has no adverse

impact on cholesterol levels.

Outcomes of palm oil

nutrition research

CHAPTER 10 OF WHO REPORT:

FAT AND FATTY ACID INTAKE AND METABOLIC EFFECTS

IN THE HUMAN BODY Total Cholesterol (TC) and Low Density Lipoprotein (LDL)-C

raising effects of palmitic acid are lower for vegetable than

animal sources because it is present predominantly in the sn-1 and sn-3 positions as opposed to sn-2 position as in animal fats

such as lard. References cited:

Ng et al. 1992 JACN; Choudhury et al. 1995 AJCN; Zhang et al. 1997 APJCN

Advantages of Palm Oil for

Food Applications

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High Nutritional Value

Free from Genetically Modified Organism (GMO)

Free of Trans-Fatty Acid

Free from Cholesterol

Competitive Price

High Stability

Natural Anti-Oxidant

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Food Applications of Palm Oil

•Traditional Foods • Cooking oil

• Industrial Frying Fats

• Margarine

• Shortening

• Vegetable Ghee

• Confectionery Fats

• Ice Cream

• Filled Milk

• Non-Dairy Food Products

(Cheese analogue, Creamer)

•Source of pro-Vitamin A and

Vitamin E

Palm Oil is the Best Frying oil

Benefits

• The unique fatty acid composition and

natural antioxidants provide:

• Good oxidative stability – long shelf life

• High smoke point

• Excellent thermal stability – perfect for

shallow and deep frying

• Does not require hydrogenation process to

increase stability

• Palm oil is trans-free

• Can be blended with local oils, providing

desired properties & quality

0

5

10

15

20

25

100% Palm olein 75% palm olein

+ 25% soybean/

canola oil

50% palm olein

+ 50% soybean/

canola oil

25% palm olein

+ 75% soybean/

canola oil

100% soybean/

canola oil

Soybean Oil Canola Oil

Oxi

dat

ive

Sta

bili

ty, h

Source: Miskandar and Azmil (unpublished)

Palm Olein

Oxidative Stability of cooking oils:

Stability of oils before frying

0

2

4

6

8

10

12

14

16

POo 60% POo/ 40% SFO

70% POo/ 30% CNO

50% POo/ 50% CSO

POo: Palm Olein SFO: Sunflower Oil CNO: Canola Oil CSO: Cottonseed Oil

Source: A. H. Ahmad Tarmizi & R. Ismail. (2014). Food Science & Nutrition

Oxi

dat

ive

Stab

ility

, h

Oxidative stability of cooking oils:

Stability of oils after 56 hours of frying

Palm Oil as a Natural Substitute

for Trans Fat

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• Margarine formulations to reduce TFA

(< 1%, < 2%) using blends of palm oil

and soft oils

• Palm oil remains functionally desirable

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Margarines usually contain 80% fat.

However, MPOB palm-based low fat

bakery margarine is formulated using

60% fat.

Benefits

• Lower fat (60%)

• Good plasticity and satisfactory

baking performance comparable to

a standard margarine with 80% fat

content.

Palm-based for low calorie bakery margarine and spread

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Other Food Applications

Palm-based Mayonnaise

and Salad Dressing

Palm-based ice cream • Palm oil is suitable due to its narrow plastic

range with high solid at low temperature.

Palm-based cheese • Palm oil and palm kernel oil fractions

can substitute milk fat in cheese

analogue, suitable for pizza topping.

Palm Phytonutrients

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Vitamin E

(Tocotrienols

& Tocopherols)

Carotene

from Red Palm Oil

Phytonutrients

Squalene Lecithin Coenzyme Q10 Phytosterol

Source: Choo et al., 2008

Oil palm fruits

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Tocotrienols: GRAS Status from US-FDA since April 2010

(GRAS = generally regarded as safe)

Tocotrienols can be included in foods: • Margarines and spreads

• Designer fats and oils

• Salad dressing and Mayonnaise

• Potato chips and salty snacks

• Bakery products

• Cookies & crackers

• Ready To Eat (RTE) cereals, cereal bars, granola bars, protein bars and power bars

• Meal replacement and other functional beverage products and mixes

• Meatless meat products

• Tocotrienols have been demonstrated to exhibit multifaceted activities including anti-oxidant, anti-cancer, cardio-protective and neuro-protective effects

• Palm oil is the major source of tocotrienols

ppm Choo et al. 2005 Lipids;

Sundram et al. 1989. Cancer Res;

Nesaretnam et al. 2008 Cancer Lett

-80 120 320 520 720 920 1120

Palm Oil

Cottonseed Oil

Soybean oil

Cocoa Butter

Coconut Oil

Lard

TocopherolsTocotrienols

Palm Kernel Oil

Olive Oil

Peanut Oil

Sunflower Oil

Tocopherols

Tocotrienols

Rice bran Oil

Vitamin E content in Vegetable Oils

Powerful antioxidant

Immune booster

Skin

protection

Cancer prevention

Hormone regulator

Anti

inflammatory

Cardiovascular disease prevention

Neuro-protection

Radioprotection

Bone protection

Improve cognitive function

Benefits of Palm Tocotrienols

Carotenoids have

• Cancer inhibiting properties

• Anti-oxidant properties

• Immune-enhancement effects

• Cardiovascular protective effects

• Cataract preventive properties

Palm-based Carotenoids

Pro-vitamin A: Solution to vitamin A deficiency

Red Palm Oil is rich in natural carotenoids, which are biologically active as pro-Vitamin A

• Improves vitamin A and anti-oxidative status

• Reduces prevalence of Bitot’s spot (eye problem)

Vitamin A intervention program in South Africa

Vitamin A intervention program in Gansu, China

Benefits of Palm Carotenoids

Palm Oil for Non-Food Applications

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Palm-based Cosmetics &

Personal Care Products • Renewable active

• Environmental friendly

• Biodegradable

• Mild to skin

Uses of palm oil products

Palm Oil for Cosmetics Products

Palm-based cosmetics for facial creams, body lotions, lipstick, lip gloss, foundation + Vitamin E (Tocotrienols)

• Excellent marketing tool • Premium pricing and image

Natural Triglyceride

Fatty acids Fatty alcohol Fatty amine

/amide Glycerol

Oleic Acid

DHSA

Transparent soap

Color cosmetics

Deodorant stick

Fatty ester

coated uncoated

uncoated coated

Palm-based new ingredient for Cosmetics

PALM DIHYDROXYSTEARIC ACID (PALM DHSA)

OH

CH3 -(CH2)7 -CH-CH-(CH2)7- COOH

OH

C18H36 O4

Using Oleic Acid from palm oil as a feedstock

(MW: 316.38)

Palm-based Facial Mask + Vitamin E Tocotrienols

• Increase skin hydration and protect the skin from free radical

(skin feels soft and radiance)

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Without Vit. E With Vit. E

Cosmetics to Cosmeceutical

• Palm oil is an important oil to the world, fulfilling the needs for calories and health; to feed the growing global population.

• Palm oil has a wide range of applications in the food, cosmetics and other non-food industries,

• Abundance in supply, environmental friendly & renewable and cost effective.

• The Malaysian oil palm industry will continue to grow in a sustainable manner ensuring the people, planet and profit are part of the equation.

• Malaysia will continue to provide a high quality and reliable supply of palm oil to meet the needs in the Philippine and the world.

Conclusions

Mark Your Calendar Thank you

kushairi@mpob.gov.my