Apex Agricom Supply of Animal Fats from A Buyer s Perspective

Transcription

1 Supply of Animal Fats from A Buyer s Perspective 21/11/2017 Supply of Animal Fats from A Buyer's Perspective 1

2 Executive Summary of Apex Agricom Apex Agricom Pte. Ltd. is a newly-registered Singapore-incorporated consultancy company, with a keen focus on the non-fossil waste and residues markets within the Asian region. About Chong Jen Shen, Director, Apex Agricom Having spent several years as a Supply Manager for feedstocks in the renewable diesel business, and several years prior in a multi-national trading company, Jen Shen has gained invaluable experiences in the field of sourcing, marketing and trading of the waste and residues products. Content: What are Animal Fats? Simple Production Flowchart of Animal Fats Typical Quality of Animal Fats Trade Flows: Estimates of Production Factors Affecting Supply and Demand A Buyer s Perspective 21/11/2017 Supply of Animal Fats from A Buyer's Perspective 2

3 What are Animal Fats?: Animal Fats is a by-product of the meat industry, and in its liquid form, is the oil derived from a rendering operation and is that portion which is separated from the cooked bony and protein material Many Types of Animal Fats: Tallow / Cattle (Bovine) Tallow / Sheep (Ovine) Lard / Pigs (Porcine) Poultry Fats / Poultry Fish Fats / Fish Typical Uses of Animal Fats: Soaps Candles Oleochemicals Pet Food Biofuels 21/11/2017 Supply of Animal Fats from A Buyer's Perspective 3

4 Simple Production Flowchart of Animal Fats (Tallow): Approximate yields of: 30% 20% Animal Fats Livestock Slaughterhouses Rendering houses / Waste animal parts 50% Meat and Bone Meals Choice meats / Packing houses Moisture 21/11/2017 Supply of Animal Fats from A Buyer's Perspective 4

5 Typical Quality of Animal Fats (Tallow) Selected Parameters: Free Fatty Acids Peroxide Value Moisture Titer Colour Polyethylene Iodine Value Insoluble Impurities 21/11/2017 Supply of Animal Fats from A Buyer's Perspective 5

6 Trade Flows - Estimates of Production of Bovine (and Porcine) Fats in Selected Regions: Estimates of Average Annual Production over last 3 years ( 000 MT) Tallow Lard USA 3.3K-3.5K USA 0.6K-0.7K EU 1.0-K-1.1K EU 2.0K-2.1K CHINA 0.8K-0.9K CHINA 3.8K-4.0K JAPAN 0.06K-0.07K SKOR 0.05K-0.06K JAPAN 0.14K-0.15K SKOR 0.19K-0.24K VIET 0.19K-0.20K ANZ 0.7K-0.8K Data from various trade sources and personal estimates 21/11/2017 Supply of Animal Fats from A Buyer's Perspective 6

7 Factors Affecting Supply and Demand: Factors Affecting Supply (of Tallow): Demand for meats Seasonal Factors Affecting Demand: Biofuels Inelastic demand in certain industries Prices of competing substitutes (RBD Palm Stearin, Animal Fats from other origins) Weather-related Re-herding of cattle Tallow has to go somewhere there are limited tank storages, and the shelf life is within 3 months 21/11/2017 Supply of Animal Fats from A Buyer's Perspective 7

8 A Buyer s Perspective (some considerations in procuring feedstock / Animal Fats): Sustainability Traceability; compliance with laws and standards Sustainability is a journey - continuous efforts needed Safety Safety at the facilities and in work places Quality Quality of the feedstock as per contractual requirements Quantity Quantity of the feedstock as per contractual requirements Communication Regular communication - to update on the latest news and regulations Competitiveness Keep prices and other requirements competitive Buyers will always have options 21/11/2017 Supply of Animal Fats from A Buyer's Perspective 8

9 Thank You! 谢谢! Chong Jen Shen Disclaimer: The slides described in this presentation are correct to the best of Apex s knowledge, and the data is based from various trade sources and own estimates. The slides are for the purpose of presenting the general overview. Apex shall not be liable for any accidental misrepresentation of the slides. 21/11/2017 Supply of Animal Fats from A Buyer's Perspective 9