Quanzhou to procure Malaysian palm oil


A DELEGATION from Quanzhou, China recently met with the Malaysian Palm Oil Board (MPOB) to procure palm oil to fulfil China’s demand for peak food production season in the third quarter of this year (3Q23). 

The meeting agreed to strengthen cooperation, notably in encouraging supply chain developments for the Malaysian oil palm industry and Fujian food industry, and procurements of palm oil. 

Quanzhou is one of the largest production centres for snack food, confectioneries and bakeries, with palm oil being the most important ingredient in the snack food industry in China. 

Therefore, food factories in Quanzhou are demanding palm oil with high quality and functionalities to meet the competitive and emerging growth of the snack food market in the country. 

For the record, Quanzhou is the main destination for palm oil exports in China. 

MPOB DG Datuk Dr Ahmad Parveez Ghulam Kadir said it has developed new palm oil formulations for food applications especially innovations using red palm oil, structured palm fats and palm tocotrienols as ingredients for snack food. 

“Our innovations and formulations will support the burgeoning and ever-expanding growth of the Chinese snack food industry that demands higher quality palm oil,” he said in his welcoming remarks to the Chinese delegation. 

Meanwhile, Quanzhou deputy mayor Wang Zhihong welcomed the Malaysian palm oil producers and traders’ expansion of their business contacts and trade relations with Quanzhou City. 

“By building a world-class business climate and collaborating closely with all stakeholders for a win-win future, we pledge to serve the best interests of the industry,” she said during the visit. 

Two producers from the region, Panpan Foods and Dali Foods are listed in the 2021 Top 500 Agricultural Producers in China. 

The city with an 8.85 million population has more than 1,500 food manufacturing enterprises accounting for RM90 billion or 6% of its total industrial output, which was RM1.44 trillion in 2021. 

According to Chinese Customs, Fujian Province imported 530,000 tonnes of palm oil in 2021. 

The palm oil uptakes in Quan- zhou are expected to grow further in 2023 considering the lifting of Covid-19 measures and acceleration in economic development in China. 

China has historically and regularly sourced its palm products from Malaysia. 

This is demonstrated by the fact that exports of Malaysian palm products to China have tripled from 1.02 million tonnes in 2000 to 3.14 million tonnes in 2022. 

The delegation meeting was also attended by representatives from MPOB as well as the Malaysian and Chinese industry members interested in food manufacturing and palm oil trade. 

The Chamber of Commerce for Fujian Food Manufacturers and Erapoly Global Sdn Bhd exchanged letters of intent for palm oil during the meeting. 

  • This article first appeared in The Malaysian Reserve weekly print edition