Brent Campbell Business Development Manager AAK USA US Oils & Fats Trade Focus on Palm POTS - Kuala Lumpur, Malaysia - October 16, 2012
Areas of Focus US Consumption Trends Current Issues & Opportunities Usage & Labeling of Interesterified Fats Edible Product Applications for Palm Oil -Bakery -Frying -Confectionary -Dairy Q&A
US Oil Consumption History US Domestic Consumption of Edible Oils 30 25 20 15 10 Peanut Sunflower Seed Olive Cottonseed Palm Kernel Coconut Palm Rapeseed Soybean 5 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 billion lbs 2012 Palm oil has become an increasingly important part of the US oil market
Usage of Edible Oils by Product Type Domestic Shipments of Edible Fats & Oils (millions pounds) 25,000.00 20,000.00 15,000.00 Other (Confectionary Fats, etc) Margarine Oil Salad or Cooking Oils Baking or Frying Fats 10,000.00 5,000.00 0.00 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
US Palm Oil Imports 1150 Thousand Metric Tons 1111 1100 1050 1036 1021 1000 994 980 950 900 2008/09 2009/10 2010/11 2011/12 2012/13
Current Challenges & Opportunities Trans Fatty Acid removal/reformulation - Saturated Fatty Acid reduction - Sustainable Oil Solutions - Weak Cocoa Prices - Global Economy - = Opportunity = Challenge
5-Year Cocoa Price History (USD/MT)
Usage & Labeling of Interesterified Fats IE oils are very prevalent in the US, but nearly impossible to quantify due to the lack of a labeling requirement The US FDA has stated that it is not necessary to declare Interesterified on the ingredient label unless the product contains a hydrogenated component, in which case producers have the option to declare the hydrogenated component individually, or to label it all as interesterified Modified is not an acceptable descriptor in the US
Palm Oil Product Applications
Edible Applications for Palm Oil in the United States Bakery Zero-Trans Shortenings & Flakes, Margarines -Biscuits, Sweet Breads, Pizza (frozen), Refrigerated Dough, Pies Frying Zero-Trans Frying Oil -Donuts, Snack Cakes, Fried Desserts Confectionary Coating Fats (Cocoa Butter Equivalents & Substitutes) Filling Fats Dairy Whipped Toppings Non-Dairy Creamer
Bakery In most cases, dough fats are partially crystallized when added to the dough. Therefore the demands on crystallization properties & the crystal structure of bakery fats are very specific. Four methods of delivery Solid cubes with a homogeneous crystal structure Flakes Liquid deliveries, which need to be crystallized before use Pumpable shortenings, basically a slurry of crystals and liquid fractions.
Zero-Trans Shortenings Wide range of plasticized shortenings utilized All-purpose shortenings commonly made from 100% RBD palm Variations include blends of: -RBD palm/canola -Hard palm/soy or canola -IE blends of numerous oils with palm hard stock (PKS, PKO, Super Stearin) Pies, Cookies, Cakes, Biscuits
Shortening Flakes Flaked fat that improves baking performance and offers superior handling characteristics Typically made from PHSBO or fractionated palm -Palm blends are often IE -PHF, POLN most popular fracs -PKO popular from functional perspective, but recent price volatility has caused some demand destruction
Frying Oils US food processors have transitioned away from PHSBO as a frying oil Liquid veg oils are now preferred Pam oil/olein has become the most used source oil today due to economy of scale and the need to reduce or eliminate trans from hydrogenated soybean/cottonseed oils
Coating Fats
Cocoa Butter Alternatives Cocoa Butter Alternatives CBAs Cocoa Butter Equivalents Cocoa Butter Improvers CBEs/CBIs Cocoa Butter Replacers CBRs Cocoa Butter Substitutes CBSs Fractionated Non-lauric Non-trans Hydrogenated/ unhydrogenated Non-lauric High trans/low trans Hydrogenated/ unhydrogenated Lauric Non-trans Trans Fatty Acid Levels of these groups Typical CBE = < 1% Typical CBR = 50% 70% Typical CBS = < 1%
Ice Cream Coating Fats The fat content of ice cream coatings is higher than most coatings for bars or bakery products. The total fat content could be around 50-65% fat. With that amount of fat the requirements will be critical. It must, Set quick Be soft -but not too quick -but firm Melt rapidly -but be solid before eating The requirements are indeed contradictory, but they can be met by using a quick-solidifying vegetable fat with a low melting point. CNO, PKO, POLN, and blends of these oils 20
Example of Innovative, Low-Saturated Product
Filling Fats 23
Requirements of a filling Sensory Hard or soft? Cool-melting? Flavour release? Mousse structure? Stability Storage temperature? Shelf life? Processing Crystallisation speed? Tempering? Rework? The choice of filling fat affects many properties Recipe Nuts? Soft toffee? Chocolate covered? Health/image/ labelling Vegetable fat? Reduced amount of SAFA? Best Oils: PMF, Palm Kernel, Palm Oil
Dairy Fat Replacement Whipped cream toppings Coffee creamers Cheese analogs Ice cream Optimal fat for Whipping Cream and Non-Dairy Coffee Creamer: PKO & CNO Optimal fat for cheese analogs: PO, PK, Canola Optimal fat for ice cream: Palm & PKO 25
Questions?