Current Status & Future Prospects

in China

He Dong ping, Jiang Yuanrong, Wang Yong

Global Rice Bran Oil Conference – 2015, Mumbai, India

Production and Consumption of Edible Oil in China

RBO Processing and Products

Policy Support

Industry Response

Customer Acceptance

Outline

Consumption of the Major Oilseeds in China

3

Vegetable oil consumptiona (MMT) in China: 2005–2011

Year Soybean

oil

Rapeseed

oil

Palm

oil

Peanut

oil

Sunflower

seed oil Others Total

%

increasing

rate

2005 7.61 4.54 4.97 2.26 0.39 1.74 21.51 ---

2006 8.67 4.34 5.14 2.01 0.33 2.07 22.56 4.8

2007 9.69 4.14 5.22 2.02 0.13 2.14 23.34 3.4

2008 9.49 4.85 5.62 2.18 0.44 2.16 24.74 6.0

2009 10.44 5.64 5.93 2.23 0.49 2.19 26.91 8.8

2010 11.11 5.96 5.80 2.43 0.33 2.03 27.66 2.8

2011 12.06 5.69 6.19 2.56 0.48 2.11 29.09 5.2

aSource:USDA

MMT: million metric tons.

In 2011, the annual consumption of vegetable

oil per capita is over 20kg

Production of Main Oilseeds in China (MMT)

4

Year Soybean Groundnut Rapeseed Cottonseed Sunflower

seed Sesame Others Total

2005 16.35 14.34 13.05 9.60 1.93 0.63 1.37 57.27

2006 15.97 12.89 10.97 12.11 1.50 0.67 1.24 55.34

2007 13.40 13.03 10.57 12.60 1.25 0.56 1.22 52.63

2008 15.54 14.29 12.10 13.50 1.79 0.59 1.91 59.71

2009 14.98 14.71 13.66 12.54 1.96 0.62 1.49 59.96

2010 15.10 15.64 13.10 11.95 1.90 0.70 1.65 60.04

2011 13.50 16.20 12.50 13.13 2.00 — — —

Source: USDA and National Bureau of Statistics of China

The increase in production of oilseeds is not as high as it in consumption

Main oil import in 2005–2011 (MMT) in China

5

2005 2006 2007 2008 2009 2010 2011 (Jan.–Sept.)

RSO

(imported as rapeseed)

0.098 0.244 0.274 0.376 1.084 0.528 0.222

Rapeseed oil

0.178 0.044 0.375 0.270 0.468 0.985 0.355

Total RSO 0.276 0.288 0.649 0.646 1.552 1.513 0.577

SBO (imported as

soybean) 4.786 5.089 5.544 6.410 7.658 9.863 6.787

Soybean

oil 1.694 1.540 2.820 2.586 2.391 1.341 0.851

Total SBO 6.480 6.629 8.364 8.996 10.049 11.204 7.638

Source: Chinese Customs Statistics

The total imported oil, including oil extracted from imported oilseeds is 19MMT,

accounting for 69% of the consumption in 2010.

0

4.8

8.2

14.2

23 25.8

0 -3.3

-8.2

5.2 5.6 5.7

-10

-5

0

5

10

15

20

25

30

consumption

production %

2005 2006 2007 2008 2009 2010

RBO can help meet the increasing oil consumption in China

The gap of increasing ratio between consumption and production

China, 200

India, 160

Indonesia, 71

Bangladesh, 52

Viet Nam, 44

Thailand, 36

Myanmar, 29

Philippines, 18

Brazil, 12

Japan, 11

Cambodia, 9.4

United States of America, 8.6

MMT

China

India Indonesia

From FAO, 2015

China is the World's Largest Producer of Paddy

RBO Consumption

1,000 ton

RBO Potential

production

1,000 ton

Utilization

ratio

%

China 200 2,400 8

India 800 1,600 50

Japan 80 127 62

Japan imports crude oil from India, Vietnam and China and developed a

complete industry chain with almost 100% utilization including power

generation with the husk, and production of oryzanol, phytic acid, inositol

and VE

Rice Bran is underutilized in China

Development of RBO production in China

Three phases

1970: Soap

1985: Small extraction plant

2000: Large scale production

Refinery

Crude oil plant

Rice plant1

Rice plant 2

Rice plant3

Rice plant4

Crude oil plant

Rice plant1

Rice plant 2

Rice plant3

Rice plant4 Crude oil

plant

Rice plant1

Rice plant 2

Rice plant3

Rice plant4

Crude oil plant

Rice plant1

Rice plant 2

Rice plant3

Rice plant4

New Mode

extracting dispersedly; refining centralizedly

Key processing of RBO in China

Stabilization of rice bran on site, to obtain the crude oil with lower

FFA and lighter color

Mild refining process, for more nutrients reservation and higher yield

-10%

10%

30%

50%

70%

Yield

AV>20 AV<20

Rice Bran Oil Products in China Market

0

5

10

15

20

2009 2010 2011 2012 2013 2014

Nu

mb

er

of

Pro

du

cts

From GNPD, 2015

Policy Support

National Standard National Plan

In 2012, State Administration of

Grain published <The Twelfth

Five-Year Development Plan

for Grain and Oil Processing

Industry>

• Capacity >150 tons per day

• Rice bran extruding

preservation equipments

AV of crude RBO: adjust from

4 to 25

Add oryzanol standard for

both crude RBO and refined

RBO (under consideration)

Adapt biotechnological

refining process (under

consideration)

Industry response

RBO is becoming the new profit-growth spot

RBO promotion activities in China

Customer Acceptance

THANKS