CHINA: Increasing palm oil imports with WTO membership encourages noodle and soap makers
Industry participants have expressed their optimism on the effects of China's imminent entry into the World Trade Organisation. The quality and import amounts are expected to increase on a wide variety of domestic products, while the industry maintains its competitiveness.Imports of palm oil and stearin, a solid derivative used for soap and cosmetics, are expected to surge once they are not limited by a quota system. Lee Sing Lee, of the Malaysian Palm Oil Promotion Council in China, estimated that post WTO imports would increase by at least 0.7m tons, because currently "stearin is being held hostage by the quotas because it is included (as a quota item)."Bringing more stearin into the domestic market means more competition against the similar product tallow, made from animal fats. A spokesman for the Shanghai Soap Group, Lui Ji, believes that soap makers will prefer stearin because of its price and quality. Many soap producers are currently using pork lard, but as Lui explains, with stearin "we can improve the quality of our product."Palm oil also constitutes 25% of the weight of a packet of noodles, a product that is extremely popular on the Chinese market; over 14bn packets were sold last year, and consumption is expected to increase with increasing residual income. An engineer explained why substitutes are not as effective an ingredient: "[palm oil] fries the product. But more than that, it preserves it once its cooked." When the import market opens up, noodle makers hope that increased accessibility to palm oil will increase their food market share.
Get full access to all content, just $1 for 30 days
A Message From The Editor
just-food gives you the widest food market coverage.
Paid just-food members have unlimited access to all our exclusive content - including 16 years of archives.
I am so confident you will love complete access to our content that today I can offer you 30 days access for $1.
It’s our best ever membership offer – just for you.
Dean Best, editor of just-food
- Unilever 2016 investor day - the top takeaways
- Have food promotions reached tipping point?
- Mondelez goes beyond certified cocoa - analysis
- What Premier CEO Gavin Darby thinks about Brexit
- How Tyson's new CEO plans to grow the meat group
- Nestle unveils process to cut sugar by 40%
- Putin 'wants embargo to run as long as possible'
- Unilever sets new margin target with help from ZBB
- Unilever focuses on "value" of spreads arm
- McCormick to buy flavours business Enrico Giotti