Health Challenges For Global Oils & Fats Industry

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1 Health Challenges For Global Oils & Fats Industry Kalyana Sundram, PhD Deputy Chief Executive Officer & Director, Science & Environment Malaysian Palm Oil Council (MPOC)

2 WHO GUIDELINES FOR PREVENTION OF CVD RISK (2007) Saturated fats raise LDL-C. Individual SAFA have different effects, with C14:0 and C16:0 having the greatest effect on LDL-C. SAFAs are not all equally hypercholesterolaemic. Stearic acid (18:0) and <C12:0 thought not to raise TC. The effects of different SAFAs on lipoprotein cholesterol distribution are not well known. When substituted for SAFAs in metabolic studies, n-6 abundant in soybean and sunflower oil and MUFAs abundant in olive oil lower TC, LDL-C and TG concentrations More research is needed to determine the appropriate mixture of unsaturated fatty acids that will produce maximum benefits against effect CVD risk.

4 Neanderthal Man Homo Erectus.Homo Sapiens Homo Syndrome X..Homo Diabeticus..Homo Infarctus We can reverse this trend!!!!

5 THE US 2010 Nutrition Dietary Guidelines Reducing Saturates to <7% Energy Less than 7 percent energy from SAFA, if attained, should have a significant public health impact. As an interim step toward this < 7 % goal, all individuals should immediately consume less than 10 % energy as saturated fats. This impact would not only be limited to a reduction in heart disease and stroke, but also in Type II Diabetes

6 A Healthy Oil/ Fat is About Reducing/ zero trans fat Reducing saturated fat Increasing polyunsaturated fat Increasing monounsaturated fat

7 Results of Randomized Studies of the Effects of a Diet High in Trans Fatty Acids (Circles) or Saturated Fatty Acids (Squares) on the Ratio of LDL Cholesterol to HDL Cholesterol Ascherio A et al. N Engl J Med 1999;340: T KARUPAIAH Oct 2011

8 T KARUPAIAH AFC 2011

Food Industry Response Crisco specialty fat manufacturing produced the original partially hydrogenated vegetable shortening now releases a new formulation made from solid fully

9 Food Industry Response Crisco specialty fat manufacturing produced the original partially hydrogenated vegetable shortening now releases a new formulation made from solid fully hydrogenated palm oil cut with soybean oil & sunflower oil This blend is labeled as zero grams of trans fat per 1 tablespoon serving. Has Trans being replaced by Interesterified Fat?

KFC (Canada) switches to trans-fat free Canola oil by early 2007.

10 Food Industry Response KFC (US) promises to replace partially hydrogenated soybean oil to trans fat free linolenic-rich soybean oil by April KFC (Canada) switches to trans-fat free Canola oil by early Starbucks (US) removes trans from muffins, pastries & doughnut in 50% of outlets by Jan.2007 & 100% by end of 2007.

Commodity Oil/ Fat Million MT in 2011 (179

9 1.8 7.7 3.2 Total 127 (71%) 33.6 46.1 47.

Thus the world is awash with unsaturated

11 Commodity Oil/ Fat Million MT in 2011 (179 M) SAFA (M MT) PUFA (M MT) Palm Oil Soybean Oil Rapeseed Sunflower Total 127 (71%) MUFA (M MT) SAFA 33.6 M MT Vs 93.2 M MT. Thus the world is awash with unsaturated fats in the post trans era and this is an industry nightmare!

12 Fatty Acid Composition of Various Edible Oil Seeds and Genetic Variants Fatty Acid Composition (g/100g) Variety 16:0 18:0 18:1 18:2 18:3 Soybean Traditional Low Linolenic High Palmitic High Stearic High Oleic

13 Stearic Acid Rich-Fats: Neutral to Cholesterol Low Impact on CHD and Type II Diabetes Since stearic acid is not known to raise LDL cholesterol, stearic acid not be categorized with known cholesterol-raising fats,which include C12, C14, C16 SFA and trans fatty acids. Foods that are high in stearic acid, such as dark chocolate and shea nut oil, need not be considered as problematic as foods high in other SFA or trans fatty acids

14 Examples of Process Innovations Towards Trans Free Formulations using Interesterification Product Description Applications IE Novalipid Benefat Salatrim Enova Neobee MLT-B Fully Hyd SBO, cottonseed oil IE with native SBO for hard fats Low energy TG blend by IE of short chain FA and C18: 0 from hyd fat Edible oil with 80% DAG from IE SBO/Canola Shortening from IE MCT, tristearic and fully hyd SBO T KARUPAIAH AFC 2011 Bakery Products Reduced calorie baked products, confectionery biscuit fillings Baking, grilling, frying, salads Baking, margarine, coating fats, salad oils

15 GM Soy Targets Changes in FAC To Meet Post-Trans Era Needs Oleic Linoleic Linolenic Total Sats High-Oleic 80% 3% 3% 12% Low- Linolenic 25% 56% 3% 15% Commodity 23% 50% 7% 15% Fatty acid content of various soybean oil varieties

16 Modification of FAC by Plant Breeding or Genetic Engineering for Mid and High Oleic Varieties Product Clear Valley / Odyssey Canola Applications High stability frying oil, baking, blending FAC (%) TFA SFA PUFA MUFA < NuSun Sunflower Industrial frying, baking, high Vitamin E tr Natreon Canola Industrial frying, baking, blending < Natreon High Oleic Sunflower High stability frying, baking, blending < >80 TriSun High Oleic Sunflower High stability, baking, spray coating tr 8 9 >81

17 FDA S Labeling Guidelines Food derived from new crops (GM included) that differs in composition, nutritional profile, safety must be specially labeled If new crops are equivalent in composition, nutritional profile, safety not required for special labeling

The latest GMO study raises more questions than it answers In rats fed GMO corn, up to 50 percent of the males and 70 percent of the females died before they would have from normal aging, compared

18 The latest GMO study raises more questions than it answers In rats fed GMO corn, up to 50 percent of the males and 70 percent of the females died before they would have from normal aging, compared with 30 percent of the males and 20 percent of the females in the control group. Some 50 to 80 percent of the female rats developed tumors compared with only 30 percent of the controls. And there were several times as many cases of liver and kidney injury in the exposed rats. California s Prop 37 will: Require labeling on raw or processed food offered for sale to consumers If the food is made from plants or animals with genetic material Prohibit labeling or advertising such food as natural.

19 Palm oil 16:0 vs 18:0 (w IE sn2-18:0 as Salatrim) in HUMANS DIETARY FATTY ACIDS, %en LIPOPROTEIN PROFILE VLDL 18:3 c18: LDL 18:2 18:0 IE 18:0 10%en 16:0 42 >3.4 >3.4 > HDL LoFat 20%en 9:7:3 P/S :0 41%en 18:18:5 P/S 0.28 IE 18:0 42%en 20:17:5 P/S 0.25 sn1,3 16:0 sn2 18:0 Point is that sn1,3 16:0 is no better, no worse, than IE sn2 18:0. AND sn1,3-16:0 and sn2-18:0 have same effect as low-fat (18:2 too low?)! Test fat provided only 60% of total fat. 15 men/women, 5wks, crossover, <50% as test fat Nestel et al., AJCN 68, 1196, 1998

This paper has recorded 35,0000downloads to date (top 15 n the Journal s history) In 2008 and as a continuing effort MPOC commissioned an Expert Saturates Panel in the USA.

20 This paper has recorded 35,0000downloads to date (top 15 n the Journal s history) In 2008 and as a continuing effort MPOC commissioned an Expert Saturates Panel in the USA. The group of independent experts came prepared to label stearic neutral. The above study along with a strong science review prepared by friends of palm oil convinced the panel that stearic was not truly neutral and indeed may be detrimental

22 The Olive Oil health miracle works only for Virgin Olive Oil due to its high content of polyphenols. It does nor work the same for refined olive oil despite its high mono oleic acid. Dr. Francesco Visioli, Spain, an accomplished authority on olive oil

23 23

J Nutr 2012 ASIAN INNOVATIONS AWARD, Far Eastern Economic Review, October 2001

24 PALM PHENOLICS ARE AKIN TO OLIVE PHENOLICS? (see: BMC GENOMICS, 2011, Br. J of Nutr, 2011, Eur.J Nutr 2012 ASIAN INNOVATIONS AWARD, Far Eastern Economic Review, October 2001 THE TECH MUSEUM, STANFORD UNIV. USA, HONOURED THIS INVENTION AS A TECHNOLOGICAL BREAKTHROUGH BENEFITTING HUMANITY THE TECH MUSEUM LAURATES AWARAD, 2002

25 Fatty Acid Composition Dictates Functionality Oil OSI (110C) Stability Index Oleic C18:1 High Oleic Sunflower 18.5 hrs 86.5 % Linoleic C18:2 Linolenic C18:3 Total Sats Total Trans 5.1% 0.2% 7.6% 1.0% High Oleic Canola Low Linolenic Canola Low Linolenic Soy Partially Hydrogenated Soy Soybean Palm Olein PALM OLEIN: Long fry life cost effective Trans fat free Taste Adapted from: Fits Functionality, sensory & health Available now / supply assured Functionality Health

The New Miracle of Coconut Oil : Despite its 80% Saturation

Melissa Clark, March 2011 However, science does not really

26 The New Miracle of Coconut Oil : Despite its 80% Saturation Health Benefits of Coconut Oil Should be better Promoted. April 18, 2011 A Greta Appetite. Once A Villian, Coconut Oil Charms the Health Food World, Melissa Clark, March 2011 However, science does not really support these claims and hypes. How is it then that coconut oil is so vigorously promoted???

27 Fig HUMAN TC RESPONSE TO 14:0 +16:0 FATS * 154 * ** % % 27% 31% 26% 26% 27% Entr COCO POL CORN Entr PKO POL Ng et al. AJCN 53:1015S, 1991 Sundram et al. AJCN 59:841, 1994

28 60 Oils and Fats: perception of human health impact - France Good Product in terms of Human Health (Total Mention) Coconut oil Lard Maize seed (corn) oil Coconut oil Lard Maize seed (corn) oil Palm oil Palm oil Various Coconut Maize seed Palm oil Soya oil Lard Rapeseed Various Peanut oil Margarine Soya oil Butter Rapeseed Sunflower Olive oil seed oils oil (corn) oil oil seed oils oil seed oil 22 Various seed oils Bad Product in terms of Human Health (Total Mention) Peanut oil Margarine Soya oil Butter Rapeseed oil Sunflower seed oil Palm oil has now the worst image of all fats in term of impact on health. Half the population have a negative opinion, up 19 pp vs Y-2. Olive oil

29 FINDUS FROZEN PRODUCTS 29 PALM-OIL FREE All the potatoes range is simply cooked, without palm oil and hydrogenated fats to improve the nutritional quality of its products, while keeping his rich taste.

30 FRITO-LAY/PEPSICO GROUP: CHIPS THE LAYS COMMITMENT 30 PALM-OIL FREE: Since 2007 Lays produce chips with 100% sunflower oil. It s less saturated fats which improves the nutritional facts. In addition, the sunflower oil has a better impact on the environment because it doesn t contribute to the deforestation.

31 JACQUET PACKED BREAD SELECTED FRENCH WHEAT PALM OIL - FREE 31

Consumers' perception on attributes of edible oil (Myanmar) Particulars

5% 2% 1% 2% Flavor & 92% 34% 2% 2% 2% 3% 3% Aroma convenient to 59% 7% 54%

1% fattening 27% 3% 64% 3% 1% 2% 10% nutritious 90% 10% 1% 4% 2% 1% 1% 5%

32 Consumers' perception on attributes of edible oil (Myanmar) Particulars Groundnut Sesame Palm Vegetable Soy Sun Olive Don t know taste 97% 19% 3% 5% 2% 1% 2% Flavor & 92% 34% 2% 2% 2% 3% 3% Aroma convenient to 59% 7% 54% 5% 1% 1% 1% use availability 65% 12% 72% 6% 2% 1% 1% 1% cheap 4% 2% 96% 5% 1% fattening 27% 3% 64% 3% 1% 2% 10% nutritious 90% 10% 1% 4% 2% 1% 1% 5% suitable to 90% 18% 1% 5% 2% 1% 2% 1% health packing 80% 8% 6% 8% 5% 3% 7% 16%

33 We currently bask in the fact that palm oil has effectively displaced trans especially for solid fat formulations. This has resulted in the current 1.2 million MT PO market in the USA and expected to rise to 1.5 million MT in 2009 Beware: US Food Labels allow for minimum TFA based on portion sizes. This allows trans to continue existing under the radar with ever increasing evidence of smaller portion / serving sizes. New movement that is now gaining momentum that low TFA intakes may be more tolerable nutritionally than the saturates that are replacing them. We are however not effectively defending our positions through this area of promotional research

34 The US Fast Food Market An Opportunity Lost! US Fast Food giants are actively experimenting with high-oleic GM oils as fry oils Good fry performances from these varieties Direct fry tests versus palm olein are available Many attempts are still failing due to: - supply uncertainty - Higher prices that needs to be absorbed and cannot be passed to consumers PO losing a potential high throughput market -To date no direct comparison between these high oleic oils and palm olein for nutritional outcomes Here is a clear case and need for Promotional Nutrition Research

35 Manufacturing Food Ingredients Supply Considerations Just two fats and oils dominate and dictate processing worldwide, and any discussion of strategies to reduce trans and saturated acids in the food supply must focus on soybean and palm oils. - Gary R. List, Lead Scientist, Food and Industrial Oil Research, NCAUR, ARS, USDA, Peoria, IL.» Food Technology 58:23-31 (2004).

36 THANK YOU

PALM OLEIN BLENDING FOR TEMPERATE MARKET L/O/G/O

PALM OLEIN BLENDING FOR TEMPERATE MARKET L/O/G/O Basic Facts on Oil Palm Originated from West Africa, palm oil is the rich source of edible oil and has become important resource of vegetable oil in the