Edible Oils

CBI MARKET SURVEY: THE VEGETABLE OILS AND FATS
(INCLUDING OIL SEEDS) MARKET IN THE EU
CBI MARKET SURVEY
THE VEGETABLE OILS AND FATS

(INCLUDING OIL SEEDS)
MARKET IN THE EU
Publication date: June, 2009
CONTENTS
REPORT SUMMARY ................................................................................................... 2

INTRODUCTION ....................................................................................................... 4
1 INDUSTRIAL DEMAND .......................................................................................... 5
2 PRODUCTION ...................................................................................................... 13
3 TRADE CHANNELS FOR MARKET ENTRY .............................................................. 18
4 TRADE: IMPORTS AND EXPORTS ......................................................................... 22
5 PRICE DEVELOPMENTS ....................................................................................... 32
6 MARKET ACCESS REQUIREMENTS ....................................................................... 35
7 OPPORTUNITY OR THREAT?................................................................................ 37
APPENDIX A PRODUCT CHARACTERISTICS ........................................................... 38
APPENDIX B INTRODUCTION TO THE EU MARKET ................................................ 42
APPENDIX C LIST OF DEVELOPING COUNTRIES ................................................... 43
This survey was compiled for CBI by ProFound Advisers In Development

Disclaimer CBI market information tools: http://www.cbi.eu/disclaimer
Source: CBI Market Information Database URL: www.cbi.eu Contact: marketinfo@cbi.eu www.cbi.eu/disclaimer
Page 1 of 44

Report summary
This market survey provides exporters of vegetable oils and fats (including oil seeds) in
developing countries (DCs) with a wide range of facts, figures and information with respect to
the European Union (EU) market. The emphasis of this survey lies on the food industry and
products which are of importance to DC suppliers. Additionally, this study focuses on organic
vegetable oils & fats and oil seeds in the EU market, as far as relevant information is available.
The vegetable oils and fats (including oil seeds) market in individual EU countries is discussed
further in the separate country-specific CBI market surveys. These market surveys can be
downloaded at http://www.cbi.eu/marketinfo.
Industrial demand
Driven by higher incomes in countries with large populations, greater health concerns and a
strong demand for biofuels (falls outside scope of this study), EU consumption of vegetable oils
and fats is expected to grow along with global consumption.
However, EU industrial demand for vegetable oils and fats increased by an annual average rate
of only 1% in volume as from 2003, amounting to 11 million tonnes in 2007. Germany
accounted for a market share of 19%. Other important EU consuming countries of vegetable
oils are Italy (16%), The Netherlands (12%), Spain (12%), the UK (8%), and France (7%).
Within the group of vegetable oils and fats selected, palm oil is the leading product demanded
by the European food industry, accounting for a market share of 40% in 2007. The palm oil
market experienced the strongest average growth of all vegetable oils discussed here. EU
vegetable oil demand also consisted of olive oil (21%), sunflower & safflower oil (20%),
coconut, palm kernel & babassu oil (15%), maize oil (2%) and groundnut oil (1%). The EU is
the largest market for cocoa butter, fat & oil in the world; however record high prices and the
economic crisis resulted in rapidly falling demand for the product and stimulated demand for
cocoa butter substitutes.
The crushing of EU oil seeds related mainly to sunflower seeds. Industrial demand for
sunflower seeds has been fluctuating substantially and amounted to 4.6 million tonnes in
2007. Industrial demand for sesame seeds also fluctuated and amounted to 105 thousand
tonnes in 2007. Finally, some small-scale crushing of copra, amounting to 21 thousand tonnes
in 2006, was recorded.
Spain and France are the EUs leading markets for the selected oil seeds, each holding a share
of 22% of total EU industrial demand in 2007. Other important EU markets for oil seeds are
Hungary (13%), Italy (11%), The Netherlands (7%) and Germany (6%). Many countries
experienced negative annual average growth rates.
The most important trends influencing the vegetable oils and fats market (including oil seeds)
are the trends towards healthier eating habits, increased demand for specialty oils, heightened
interest in sustainably produced products (such as organics) and the increasing demand for
biofuels.
Production
EU production of vegetable oils and fats decreased during the review period by an average rate
of 4% annually, amounting to 4.4 million tonnes in 2007. The production consisted mostly of
olive oil (54%) and sunflower oil (38%).
Due to its extensive olive oil production, Spain is the leading member country producing
vegetable oils and fats in the EU, accounting for one third of total EU production in 2006. Italy
is the second leading producer (again, due to olive oil), accounting for a 19% market share.
Other important EU producing countries of vegetable oils and fats are France (10%), Greece
(10%), Hungary (7%) and The Netherlands (5%). Production in most EU countries declined.
Page 2 of 44

However, of the larger countries Italy and Greece saw their production growing somewhat,
whereas Hungarian production increased considerably.
Production of oilseeds is limited to sunflower seeds and a very small share of sesame seeds.
Sunflower seeds production declined sharply between 2006 and 2007 to 4.8 million tonnes.
Leading countries in sunflower seed production are France, Hungary, Spain, Bulgaria and
Romania. The production of sesame seeds amounted to only 1,266 tonnes and only takes
place in Italy, Greece and Cyprus.
Trade channels
A producer of vegetable oils and oil seeds can choose from a number of distribution channel
options available, depending on the requirements of the downstream companies. In general,
large volumes go straight from producer to processor, while suppliers of smaller volumes may
opt to use agents, brokers or importers.
The main distribution intermediaries are:
Traders (importers, agents or brokers);
Refining industry (where required, in combination with a trader);
Final processing/manufacturing industry.
Trade: imports and exports
Total EU imports of vegetable oils and fat reached 8.9 billion / 9.4 million tonnes in 2007,
indicating an average annual growth of 10% in value and 5% in volume terms in the period
20032007. Italy was the largest EU importer, accounting for 20% of total EU imports,
followed by Germany (15%), The Netherlands (14%), France (11%), Belgium (10%) and the
United Kingdom (9%).
DCs play a crucial role in the supply of vegetable oils to the EU. Around 40% of total imports in
terms of value, and 56% in terms of volume were directly sourced in DCs. However, the real
share is much higher. DC supply increased considerably, by an average of 10% annually.
Total EU imports of oil seeds decreased by an annual average rate of 1% in value and 4% in
volume terms, amounting to 729 million / 1.8 million tonnes in 2007. Germany was the main
EU importer in 2007, accounting for a 19% share of total EU imports of oil seeds. Spain
(18%), The Netherlands (17%), Italy (11%) and UK (5%) were the other leading EU importers
of oil seeds in 2007. Imports of oil seeds directly sourced in DCs accounted for 34% in terms
of value and 27% in terms of volume. DC supply of oil seeds on average decreased somewhat
between 2003 and 2007.
Total EU exports of vegetable oils and fats increased by an annual average rate of 9% in value
and 7% in volume between 2003 and 2007, amounting to 6.7 billion / 4.6 million tonnes in
2007. With respect to oils seeds, total EU exports increased by an annual average rate of 7%
in value and 2% in volume, amounting to 619 million / 1.9 million tonnes in 2007.
Opportunities and threats
Opportunities for exporters in DCs of vegetable oils and fats (including oil seeds) lie in the
following fields:
Organic oils and fats;
Specialised vegetable oils and fats for niche markets (e.g. shea butter, sweet almond oil,
sesame oil);
Main products: palm oil, coconut oil and palm kernel oil.
However, although the market for palm oil is rapidly growing in the EU, the palm oil business is
wholly dominated by multinationals in the main supplying countries Malaysia and Indonesia.
Another threat is the current economic downturn, which led to diminishing export
opportunities, stocks piling up and much lower prices for most products.
Page 3 of 44

Introduction
This CBI market survey profiles the market for vegetable oils and fats (including oil seeds)
used by the food industry in the EU. The emphasis of the survey lies on those products, which
are of importance to developing country (DC) suppliers. The role of, and opportunities for, DCs
are highlighted.
This market survey discusses the following product groups:
- Vegetable oils and fats (coconut, palm kernel & babassu oil, groundnut oil, olive oil, palm
oil, sunflower & safflower oil, maize oil, sesame oil and cocoa butter, fat & oil);
- Oil seeds (copra, sunflower seed, sesame seed).
Several vegetable oils and fats (including oil seeds) are also used in other sectors, like the
biofuel sector and the cosmetics industry. Developments in the biofuel sector are only
mentioned if they are influencing the market for vegetable oils and fats (including oil seeds)
used by the food industry. Vegetable oils and fats used in the cosmetics industry are described
in the CBI market survey Natural ingredients for cosmetics.
For detailed information on the selected product groups, please consult appendix A. More
information about the EU can be found in appendix B.
CBI market surveys covering the market in specific EU countries, specific product group(s) or
documents on market access requirements can be downloaded from the CBI website. For
information on how to make optimal use of the CBI market surveys and other CBI market
information, please consult From survey to success - export guidelines. All information can be
downloaded from http://www.cbi.eu/marketinfo. Go to Search CBI database and select your
market sector and the EU.
Page 4 of 44

Industrial demand
In this chapter, data from the FAOSTAT (production) database and CN (imports and exports)
database as supplied by Eurostat is used to indicate apparent industrial demand. Apparent
industrial demand is the sum of production and imports minus exports. Variations in inventory
are not taken into account. Two problems occur: sometimes negative consumption is
calculated, this being the case when exports are higher than production and imports
combined; in that case figures are treated as not available. Furthermore, the figures
sometimes show a discrepancy between years, e.g., a large fall or extraordinary growth. These
figures are therefore not accurate enough for decision making and they should be used in
conjunction with further market research. Furthermore, the data include vegetable oils and oil
seeds used in other industries, besides the food industry.
It should be noted, however, that FAOSTAT data does not make a distinction between the
different applications of a product. Therefore, the data included in this chapter cover food use
as well as other applications. Also note that FAOSTAT data does not cover all the products
under the scope of this survey (see Appendix A for an overview of the products covered in this
survey). Furthermore, industrial demand figures are only given in terms of volume. Figures in
terms of value are not available. Unfortunately no data indicating EU demand are available for
cocoa butter, fat & oil and copra.
1.1
Market size
Vegetable oils and fats

Due to higher incomes, a larger world population and a strong demand for biofuels, EU
demand for vegetable oils and fats is expected to grow along with global demand. Particularly
rapidly growing markets are China and India, because of the strong economic developments
and large populations characterising these countries.
Apparent industrial demand for vegetable oils and fats in the EU, however, grew only slightly
by an annual average rate of 1% since 2003, amounting to almost 11 million tonnes in 2007.
Germany has the largest market for vegetable oils and fats, accounting for 19% of the EU
total. Italy is the second largest market (16%), followed by The Netherlands (12%), Spain
(12%), the UK (8%) and France (7%). Of these countries, Germany and The Netherlands
showed the largest average annual growth. The growth of the Italian market was more
moderate. On the other hand, the vegetable oils and fats markets of Spain, the UK and France
contracted. Furthermore, Sweden showed a very strong increase in consumption of vegetable
oils and fats, with an annual average growth rate of 39%. Although the new Eastern EU
member states still represent relatively small demand for vegetable oils and fats, most of them
are currently catching up. Especially Poland is experiencing considerable growth rates.
Romania, however, saw its market decline substantially.
Within the group of vegetable oils and fats selected, palm oil is by far the leading product
demanded in the EU, having a market share of 40%. Between 2003 and 2007, industrial
demand for palm oil showed the strongest increase within the group of selected vegetable oils
and fats by an annual average growth rate of 7%, amounting to 4.2 million tonnes in 2007.
This makes the EU market for palm oil comparable to that of China and Indonesia. According
to the Foreign Agricultural Service of the US Department of Agriculture (2008) (USDA FAS),
palm oil used in the food industry is expected to grow gradually, mainly in the new EU
countries and especially Poland. Main reasons are the favourable price margin and low content
of trans-fatty acids.
The second most demanded product is olive oil (21%). The total EU demand for olive oil
comprises 70% of the global olive oil market. Apparent industrial demand for olive oil
decreased between 2003 and 2005, but then recovered in the following years. In 2007 it
amounted to 2.2 million tonnes. Mediterranean EU member countries like Italy, Spain, Greece
Page 5 of 44

and France are the largest olive oil markets, accounting for market shares of 35%, 34%, 14%
and 5%. Industry sources indicate that the demand for olive oil, which is relatively expensive
compared to other vegetable oils, has dropped in the recession (Food Navigator, 2009).
The EU is also one of the worlds biggest markets for sunflower & safflower oil, comparable to
the Russian market. EU industrial demand declined steadily during the review period, by 6%
annually. Still 27% in 2003, its share decreased to 20% in 2007, equal to 2.2 million tonnes.
One explanation for this was the record high prices. However, driven by high profits, more
sunflower seeds will be produced, especially in Spain, France, Romania and Hungary. At the
same time, additional crushing capacity is anticipated in France, Spain, Italy and Hungary, as
well as in Ukraine. Higher production will lead to lower prices and a recovery of the demand for
sunflower oil in the food industry is expected (USDA FAS, 2008).
Other vegetable oils and fats demanded by the EU food industry are coconut, palm kernel and
babassu oil (15% of total EU market), maize oil (2%) and groundnut oil (1%). The EU market
specifically for coconut oil is the biggest in the world and about twice as large as that of
Indonesia. However, the EU market has only recently begun to discover the food applications
of coconut oil and its use is not widespread. Furthermore, the EU market for palm kernel oil is
substantial, compared to global markets. Only Malaysia, with a market size of almost twice as
big as in the EU, has a higher consumption of palm kernel oil. Finally, with respect to
groundnut oil, China and India dominate the market, whereas the EU groundnut oil market is
relatively small, comparable in size to the US market.
Table 1.1
EU apparent industrial demand of the selected vegetable oils and fats,

2003-2007, in 1,000 tonnes
EU
Germany
Italy
Netherlands
Spain
United Kingdom
France
Belgium
Greece
Poland
Romania
Portugal
Denmark
Hungary
Sweden
Bulgaria
Austria
Czech Republic
Ireland
Slovakia
Lithuania
Malta
Finland
Cyprus
Latvia
Slovenia
Luxembourg
Estonia
2003
2004
2005
2006
2007
Average %
change
10,235
10,177
10,281
10,612
10,560
1%
1,576
1,449
1,035
1,713
1,050
1,020
476
397
108
396
216
168
122
42
151
75
92
49
41
15
1.9
25
4.5
5.3
2.4
3.0
1.2
1,730
1,746
1,010
1,062
957
926
547
425
144
425
206
196
204
88
171
81
105
41
55
15
1.8
24
5.6
4.2
3.3
3.3
1.3
1,740
1,576
1,358
852
905
863
570
422
161
413
224
232
304
112
212
91
101
44
38
18
1.9
25
4.3
3.4
6.3
3.1
1.5
1,949
1,633
912
1,245
962
777
613
464
234
389
226
194
341
176
141
92
92
52
47
23
2.8
20
7.5
8.2
5.9
2.4
1.5
1,996
1,652
1,310
1,263
789
783
547
475
253
204
204
203
194
159
128
111
75
69
56
24
21
18
7.9
7.6
4.5
2.5
1.7
6%
3%
6%
-7%
-7%
-6%
4%
5%
24%
-15%
-1%
5%
12%
39%
-4%
10%
-5%
9%
8%
12%
81%
-7%
15%
10%
17%
-4%
9%
Source: own calculations from FAOSTAT (2009) and Eurostat (2009) data.
Page 6 of 44

With respect to cocoa butter, fat and oil, which are included in the selected vegetable oils and
fats, industrial demand data are much more difficult to find. In 2003, the latest year for which
FAO apparent demand data is available, global demand for cocoa butter was over 700
thousand tonnes and was growing by 2% a year. Europe was the largest consuming region,
accounting for 60% of global consumption. On a global level, in 2006 and 2007 there was not
enough cocoa butter to meet industrial demand, offering interesting opportunities for
suppliers. However, because of disappointing crops, cocoa prices and, therefore, cocoa butter
prices sky rocketed in 2008. These record high prices, together with the global economic crisis,
resulted in rapidly falling demand for cocoa butter, leaving grinders with huge stocks (Food
and beverage online, 2009).
These developments, however, stimulated the demand for cocoa butter substitutes1 from
specialty vegetable oils, resulting in strong growth in the demand for these products as well as
better prices. One example is shea butter (www.confectionerynews.com, 2008).
Oil seeds
Oil seeds are supplied to the food industry as an ingredient in food products (primarily in the
bakery sector) or for further processing to oil. Apparent industrial demand for oil seeds in this
chapter only concerns sesame seeds and sunflower seeds.
On average, between 2003 and 2007 apparent industrial demand has been decreasing by 10%
per year, amounting to almost 4.7 million tonnes in 2007. However, demand has been
fluctuating considerably. This instability was visible in most EU countries.
Table 1.2
EU apparent industrial demand for selected oil seeds, 2003-2007, in

1,000 tonnes
2003
2004
2005
2006
2007
Average %
change
EU
6,953
7,300
5,933
6,474
4,659
-10%
Spain
France
Hungary
Italy
Netherlands
Germany
Bulgaria
Romania
Portugal
Austria
Greece
United Kingdom
Slovakia
Poland
Czech Republic
Sweden
Belgium
Denmark
Finland
Lithuania
Latvia
1,077
1,523
517
411
489
358
499
1,165
232
137
76
48
174
35
102
21
36
27
16
5.1
1.7
1,313
1,112
655
544
596
288
795
1,277
213
82
78
57
86
41
39
15
73
17
10
3.4
1.4
1,054
938
609
509
462
211
415
1,207
26
82
66
58
101
41
79
15
23
15
10
4.8
1.5
1,190
1,136
845
506
312
248
663
919
55
119
65
58
171
39
70
17
18
17
14
4.8
2.5
1,033
1,011
605
525
325
295
241
208
77
68
55
49
48
39
17
17
13
12
8.8
4.6
2.2
-1%
-10%
4%
6%
-10%
-5%
-17%
-35%
-24%
-16%
-8%
0.5%
-28%
3%
-36%
-5%
-23%
-18%
-14%
-2%
7%
Some vegetable fats other than cocoa butter may be added to certain chocolate products. That addition may not
exceed 5% of the finished product. Permitted vegetable fats as cocoa butter substitutes are: Illipe, Borneo tallow or
Tengkawang (Shorea spp.) Palm-oil (Elaeis guineensis Elaeis olifera) Sal (Shorea robusta) Shea (Butyrospermum
parkii) Kokum gurgi (Garcinia indica) and Mango kernel (Mangifera indica). Also see EU legislation: Cocoa and
chocolate products in the CBI database.
Page 7 of 44

2003
2004
2005
2006
Cyprus
1.6
1.8
2.0
Slovenia
1.3
1.2
1.7
Ireland
0.5
0.5
0.6
Estonia
0.8
0.8
1.2
Malta
0.5
0.4
0.3
Luxembourg
0.1
0.1
0.1
Slovenia
1.3
1.2
1.7
Source: own calculations from FAOSTAT (2009) and Eurostat (2009)
2.1
1.3
0.8
1.3
0.4
0.1
1.3
data.
2007
2.0
1.5
0.8
0.8
0.3
0.1
1.5
Average %
change
5%
3%
11%
-2%
-11%
10%
3%
Spain and France are the EUs leading markets for the selected oil seeds, both holding a share
of 22% of total EU consumption in 2007. Other important EU countries consuming oil seeds are
Hungary (13%), Italy (11%), The Netherlands (7%) and Germany (6%). Industrial demand in
all of these markets has been fluctuating. Relatively many countries experienced large
differences from year to year, resulting in considerable negative growth rates. Romania,
Portugal, Austria, Slovakia, Czech Republic and Belgium all showed average annual decreases
of over 20%. Only a few countries experienced average annual growth.
These data almost entirely reflect the industrial demand for (or crushing of) sunflower seeds
(98%). Compared to other markets in the world, the EU market for sunflower seed is relatively
large. Only the Russian and Ukrainian markets are larger.
The remaining 2% consists of sesame seeds. Industrial demand for sesame seeds fluctuated
too, however, in contrast to sunflower seeds, the market for sesame seeds experienced
average annual growth, 5% between 2003 and 2007. It amounted to 105 thousand tonnes in
2007. Most important EU markets for sesame seeds are Greece, responsible for 25% of total
EU demand, Germany (23%), Poland (10%) and France (7%).
Fediol, the EU Oil and Protein Meal Industry Federation, also records some small-scale crushing
of copra in the EU, particularly in Germany, amounting to 21 thousand tonnes in 2006.
Organic
In recent years, increased consumer awareness for healthy lifestyles has positively influenced
the demand for organic products. The International Federation of Organic Agriculture
Movements (IFOAM) and the Research Institute of Organic Agriculture (FiBL) estimate that the
total value of European2 retail sales of organic food amounted to approximately 14.3 billion
in 2006. Germany has by far the largest European market, accounting for close to a third of
the total European organic food market. The UK follows with 20%. Other important markets
are Italy (13%), France (12%), Switzerland (5%), Austria (4%), The Netherlands (3%),
Denmark (3%), Sweden (3%) and Belgium (2%).
Several major European organic food markets grew considerably between 2005 and 2006, with
growth rates of more than 20% in the UK, 18% in Germany, 10% in Austria and 9% in The
Netherlands. Also countries like Denmark and Switzerland which had experienced stagnation in
previous years, started growing again. The considerable growth has resulted in supply
shortages and price increases.
The economic crisis will decelerate the dynamic of organic market development (Bio Plus AG,
2009). Although the organic growth potential was restricted by a high demand for organic
ingredients which exceeded supply, the economic downturn will reduce demand for organics
back to the level of available supply (Research company Organic Monitor, 2009). Consumers
may pull back from luxury food items, such as organic products. Nevertheless, the organic
sector is expected to grow, although at a slower pace in the countries most affected by the
2
Note that European here refers to all European countries and not only EU countries.
Page 8 of 44

economic crisis, such as the UK. In other European countries, the market will continue to grow
considerably. Unfortunately there is no information available for the European market
specifically for organic vegetable oils and fats (including oil seeds).
1.2
Market segmentation

Fediol makes a distinction between food applications and technical (biofuels, cosmetics,
coatings, pharmaceuticals, etc.) applications of vegetable oils and fats. The main food
applications mentioned are:
Salad and cooking oils (e.g. sunflower and groundnut oil);
Deep-frying oils and fats (different kinds/combinations of oil, depending on application);
Food dressings;
Margarine and spreads;
Bakery fats (shortenings);
Cocoa butter alternative fats;
Confectionery fats;
Ice cream fats;
Vegetable dairy fats;
Infant nutrition fats;
Other food applications (soups, sauces, canned fish, etc.).

The vegetable oils discussed in this survey are mainly used in the food-processing and
cosmetics sector in the EU, although the biofuel sector is increasing at a high pace. The two
major end-users of the food industry are the ready-meals industry and other food industries,
such as canned or bottled food, pet food, confectionery, bakery and baby food industries.
Table 3.1 gives a brief description of the application of selected vegetable oils in the food
industry and the main markets within the EU for the respective vegetable oil:
Table 1.3
Industrial use and application of vegetable oils
Product
Groundnut oil
Industrial use
Mainly used in the food
sector
Application food industry

Deep frying, pan frying,
margarine, shortenings, salad oil,
salad dressing
Main EU markets
Italy, France, Germany,
The Netherlands, UK
Olive oil
Majority used in the

food sector
Salad oil, cooking, dietetic food,

health food
Palm oil
Used for 70% in the

food sector; for 24%
other industrial use
Margarine, ice-cream,
confectionery, filled milk, salad
oil, cooking, frying
Mediterranean countries like

Spain, Italy, Greece, France
and Portugal
Germany, The Netherlands,
UK, Italy
Palm kernel
oil
Used for 75% in the

food sector
Confectionery, bakery, imitation

dairy products
Germany, The Netherlands,

United Kingdom
Sunflower oil
Used for 80% in food

sector; for 11% other
industrial use
63% used in the food
sector
Margarine, salad oil, cooking,

dietetic food, health food
Spain, Italy, France,

Germany, The Netherlands
Cooking, margarine, shortenings

confectionery, bakery, filled milk,
coatings
Sesame oil

industry
Cooking, salad oil, confectionery
Cocoa butter

industry
Chocolate industry,
confectionery, bakery, dairy
products, coatings
The Netherlands, Germany,

United Kingdom, France
Coconut oil
Source: ProFounds references and calculations from USDA FAS data
Page 9 of 44

Moreover, vegetable oils can be classified as standardised and genuine & authentic vegetable
oils, also referred to as refined and crude oils, respectively. Most manufacturing companies
prefer to use refined vegetable oils in their products, not unrefined oils. This is related to
concerns over the risk of susceptible consumers developing an allergic reaction to the oil.
Some vegetable oils, notably groundnut oil, are known to trigger allergic reactions in those
persons who are susceptible. The additional benefit of refining is that the end-product is
standardised to certain analytical parameters, whereas unrefined oils naturally vary in their
composition. Nevertheless, there is a small market for genuine oil, such as the market for
natural or organically certified cosmetics, which is increasingly being explored and developed.
The market for vegetable oil products can also be segmented according to whether the
products are grown by organic farming/production (basically: growing without the use of
artificial fertilisers, herbicides, pesticides) or by conventional farming. The market share of
organic products, and thus also of vegetable oils as ingredients, is steadily increasing. There
are two major factors behind this trend. Firstly, there are growing environmental concerns
about the effects of intensive farming on the countryside. Secondly, the increased consumer
interest in healthy natural products has also led many food manufacturers to utilise
manufacturing processes which are as close to nature as technically possible. Please note that
organic vegetable oils can be refined, but the refining has to be documented and the additives
and processes also have to be organically certified.
Oil seeds
The market can be divided into segments, according to the type of destination and consumer
of the oil seeds:
processing industry / crushers;
animal feed industry;
human consumption, either as such or in cooking;
oil seeds used for agriculture (sowing).
The major part of the oil seeds is processed for oil, and the meal produced is utilised in animal
feed compounds. Palm nut kernels, sunflower seeds and sesame seeds are also used in food
snacks, bread and confectionery.
Just like the market for vegetable oils and fat, the market for oil seeds can also be segmented
according to whether the seeds are grown organically or conventionally. In fact, when a
vegetable oil is claimed to be organic, all its raw materials (e.g. oil seeds) must of course have
been organically grown.
1.3
Trends
Consumers in the EU are increasingly concerned about the quality of their oil and fat
intake. Health concerns have caused a shift away from fatty acids and hydrogenated fats
towards more unsaturated fats, which significantly increases the industrial demand for
vegetable oils and fats. Furthermore, public concern over genetically modified products
causes a shift towards GMO-free (free from genetically modified organisms) products, such
as rapeseed and palm oil.
Health concerns also influence the market for functional products in the EU. Initially
popular in the dairy sector, functional products have reached the vegetable oil and oilseed
market, meeting a growing demand for products which contain extra vitamins and healthy
substances. This trend is particularly accentuated in the olive oil market, where EU
consumers are increasingly purchasing products such as extra-virgin olive oils containing
additional vitamins A and E, with the antioxidant coenzyme Q10 or with tomato derivative.
Products containing Omega 3 have also become popular amongst EU consumers. Omega-3
fatty acids are mainly found in cold-water fish (oil) and a few vegetable oils, such as
flaxseed, walnut, rapeseed, sunflower and olive oil. The substance has many health
benefits, among which reduction of heart disease risks, the lowering of blood pressure, the
strengthening of the immune system and allergy prevention. Given the growing concern of
Page 10 of 44

consumers about healthy eating habits, the consumption of vegetable oils with a high
concentration of Omega-3 is expected to increase even further.
An increasing demand for speciality oils is also observed in the EU. Industry sources
indicate that argan oil is a good example of this trend. This oil is traditionally produced in
Morocco, and marketed according to its ethnic origin. Although the use of argan oil is still
limited to special dishes, there has been a growing interest on the consumer side for this
oil in the EU. Due to its cultural and economic ties with Morocco, France is an important
market for argan oil, but industry sources also indicate that the trend is applicable to other
EU countries (i.e. The Netherlands). It is important to note that, along with their traditional
production and ethnic origin, specialty oils are often marketed under their organic quality,
further attracting the interest of consumers for this kind of product. Regarding other niche
markets, the high-quality sesame seed oil and sesame oil markets are growing rapidly
in the EU. Other examples of specialty products are macadamia nut oil and brazil nut
oil. They serve various specialised market segments.
Note that the EU market shows a growing interest in vegetable oils and fats which are
produced in a sustainable manner, often carrying a certification (such as organics). In
fact, the market for organic foods accounts for only 1-2% of the total food market in the
EU. However, as stressed before, organic markets have been growing considerably. In
relation to organic vegetable oils, olive oil is a product of great importance. EU consumers
are increasingly purchasing organic extra-virgin olive oil obtained from traditional milling
systems.
Environmental concerns and the dependence of most developed countries on petroleum
imports, in combination with the high petroleum prices, have driven up the demand for
vegetable oils for the biofuel industry. This trend is especially visible in the EU, where
high taxes, greater use of diesel fuels and government incentives have encouraged
initiatives in the field of renewable fuels. This is expected to boost European demand for
rapeseed oils and soybean oil and, to a lesser extent, for palm and sunflower seed oil. This
puts upward pressure on prices. Higher prices, in turn, resulted in an expansion of
cultivating feedstock for biofuels at the expense of growing food crops, thereby leading to
lower supply of oil seeds and vegetable oils for the food industry.
In fact, palm oil is still increasingly replacing other oils for food purposes, mainly due to
the lower price compared to other vegetable oils, such as rapeseed and sunflower oils.
Moreover, palm oil is preferred because it has a natural versatile composition and does not
constitute a risk for cholesterol levels. Palm oil compares with olive oil and other
monounsaturated fats, such as canola and rapeseed oil. However, the future of the palm oil
market is difficult to predict. On the one hand, palm oil is a relatively cheap substitute for
other vegetable oils; it is one of the main vegetable oils used in the production of biofuel
and as biomass for energy, as it is more easily integrated into existing power stations than
the majority of other alternative fuels. On the other hand, environmental and social issues
might hinder the development of the palm oil market. Numerous studies have put the
sustainability of palm oil production in question. It is claimed that palm oil harms the
environment, since native forests are being cut down in order to provide space for the
plantation of palm trees. The controversy has resulted in protests in the EU against the use
of palm oil as a substitute for fossil fuels. Moreover, and as mentioned below, consumption
trends in the EU point toward more sustainable and environment-friendly production of
palm oil.
These trends are expected to last; however, the economic downturn has already influenced
them in one way or the other. According to Euromonitor International (2009) the economic
downturn has fuelled the health trend, as consumers now more than ever recognise the
importance of preventing disease and poor health. Many food manufacturers have adopted
health and wellness innovation strategies as a way to manage the economic downturn and
functional food products are becoming mainstream. At the same time, the economic crisis and
the low crude oil price resulted in a reduction of biodiesel manufacturing and therefore less
industrial demand for raw materials and lower prices.
Page 11 of 44

1.4
+
+
+
+/-
1.5

Although the EU market for vegetable oils and fats showed only moderate average
annual growth, the EU is one of the largest vegetable oil markets in the world. This
provides opportunities for DC exporters, especially in the top three countries, Germany,
Italy and The Netherlands, which show above average annual growth rates.
Furthermore, possibilities could be found in Sweden and some East European countries,
especially Poland, which have fast growing markets for vegetable oils & fats.
Because of the growing demand from consumers in industrialised countries for healthy
and green foods, the demand for organic oils and fats is growing, even in times of
economic crisis, although at a slower pace. Growers, crushers and exporters in DCs can
distinguish themselves from the mainstream market by offering organic oils and fats to
EU importers.
DCs might also find interesting opportunities in supplying other speciality oils (i.e. argan
oil). As mentioned previously, there has been a growing demand in the EU for oils which
are traditionally produced and carry special ethnic characteristics. Also, high-quality
sesame seed oil, sesame oil, macadamia nut oil and brazil nut oil could offer interesting
opportunities. They command higher prices, as availability and competition are less
intense compared to the conventional products.
Although the industrial demand for sunflower seeds shows average annual decline, it
fluctuates strongly and demand could be up again in 2008/2009. Demand for sesame
seeds is much smaller, however, it did experience average annual growth.
Useful sources
The EU Oil and Protein-meal Industry (Fediol) - http://www.fediol.be
The International Olive Oil Council (IOOC) - http://www.internationaloliveoil.org
Interactive European Network for Industrial Crops and their Applications (IENICA) http://www.ienica.net
Oil World - http://www.oilworld.biz
FoodNavigator: http://www.foodnavigator.com
FAS Online - United States Department of Agriculture http://www.fas.usda.gov/cots/oilseeds.asp
Page 12 of 44

Production
The production data, derived from FAOSTAT, do not cover all the products under the scope of
this survey (see Appendix A for an overview of the products covered in this survey). Also, note
that industrial demand figures are only given in terms of volume. Figures in terms of value are
not available. Unfortunately no data are available for cocoa butter, fat & oil and copra.
Also note that FAOSTAT does not distinguish between the different applications of a product.
2.1
Size of production

Approximately 150 production units for seed crushing and oil processing operate across the
European Union, together employing about 20,000 people (Fediol, 2008). Some units are
located in major seaports and concentrate on one type of seed; others carry out processing
activities based on the crushing of several types of seeds (i.e. soybean, rapeseed and/or
sunflower), some of which are imported and some produced locally. Other units depend almost
exclusively on raw materials produced locally.
According to FAOSTAT, EU production of vegetable oils and fats decreased considerably
between 2003 and 2005, but developed more moderately in the next two years. On average,
between 2003 and 2007, it decreased by 4% annually, amounting to 4.4 million tonnes in the
latter year.
Thanks to its extensive olive oil production, Spain is EUs leading producing member country of
vegetable oils and fats, accounting for more than one third of total EU production in 2007. Italy
is the second leading producer (again due to olive oil), holding a share of 19%. Other
important EU producing countries of vegetable oils and fats are France (10%), Greece (10%),
Hungary (7%) and The Netherlands (5%). Particularly Hungary showed a relatively large
increase in production between 2003 and 2007.
Table 2.1
EU production of the selected vegetable oils and fats, 2003-2007,

in 1,000 tonnes
2003
2004
2005
2006
2007
Average %
change
Total EU
5,136
4,874
4,420
4,513
4,358
-4%
Spain
Italy
France
Greece
Hungary
Netherlands
Romania
Germany
Bulgaria
Portugal
Slovakia
Austria
Belgium
Czech Republic
United Kingdom
Poland
Sweden
Denmark
1,926
802
553
405
166
273
351
138
142
131
37
61
59
30
23
16
5.7
5.1
1,350
998
561
352
213
264
388
167
167
142
56
38
96
29
20
19
4.0
3.3
985
852
526
413
287
229
369
144
208
140
40
37
102
30
20
19
4.1
5.1
1,296
858
468
426
303
197
351
144
141
126
52
39
28
30
21
17
4.0
3.1
1,483
827
425
418
302
201
146
124
121
114
58
37
28
22
21
17
4.0
2.9
-6%
1%
-6%
1%
16%
-7%
-20%
-3%
-4%
-3%
12%
-12%
-17%
-8%
-2%
1%
-9%
-13%
Page 13 of 44

Finland
Cyprus
Lithuania
Latvia
Slovenia
Estonia
Ireland
Luxembourg
Malta
Source: FAOSTAT (2009)
2003
2004
2005
2006
2007
Average %
change
5.4
1.8
2.2
0.5
0.1
0.2
0.4
0.03
0
2.9
3.0
1.5
0.4
0.4
0.3
0.1
0.03
0.004
3.5
1.8
2.1
0.6
0.4
0.3
0.0
0.08
0.003
3.5
4.0
1.4
0.7
0.4
0.3
0.1
0.03
0
2.8
2.7
1.5
0.7
0.4
0.4
0.1
0.04
0
-15%
11%
-9%
9%
33%
22%
-37%
9%
n/a
Within the group of vegetable oils and fats, production is dominated by the production of olive
oil, accounting for 54%, and sunflower & safflower oil, accounting for 38%. After a moderate
decrease in olive oil production between 2003 and 2005, partly due to severe drought in Spain
and Portugal in 2005 and the natural fluctuations of the olive harvest, production picked up
again and increased from 1.9 million tonnes in 2005 to 2.4 million tonnes in 2007. More
recently, Spain, the worlds largest olive oil producer and accounting for 56% of total EU
production, experienced good harvests, which, together with a falling demand due to the
economic crisis, led to over-production (Food Navigator, 2009). Currently the European
Commission is considering compensating EU producers for storing their surpluses. However,
according to the International Olive Council, Spanish olive harvest has been decreasing
considerably compared to last year due to heavy rains and winds. Besides Spain, only 6 other
EU countries produce olive oil. Italy is responsible for 25% of total EU production, followed by
Greece (17%) and Portugal (2%). France, Cyprus, Slovenia and Malta produce only very small
amounts.
The second most-produced vegetable oil in the EU is sunflower oil, accounting for almost 38%.
However its production has been declining steadily by an average of 8% in volume annually,
reaching 1.6 million tonnes in 2007. Compared to other global producers of sunflower oil, the
EU is one of the largest. The only bigger producers of sunflower oil are the Russian Federation
and the Ukraine, while Argentina produces about the same amount as the EU.
The production of maize oil increased between 2003 and 2005 and then decreased sharply to
reach 193 thousand tonnes in 2007. It accounted for 4% of total EU production of vegetable
oils. Although their shares were relatively small, coconut oil (2%) and sesame oil (1%) were
the only products that experienced growth. Their production increased by annual average rates
of 51% and 6%. The increase in coconut oil production reflects the increased interest for this
product from the EU market.
Other vegetable oils and fats are produced on very small scale. They include: groundnut oil (22
thousand tonnes), palm kernel oil (10 thousand tonnes) and safflower oil (4 thousand tonnes).
Oil seeds
Because of climatic conditions, production of oil seeds covered in this survey is very limited in
the EU countries. According to FAOSTAT, the only significant production concerns sunflower
seeds. After some fluctuations in the period 2003 2006 of between 6 and 7 million tonnes, its
production declined sharply to 4.8 million tonnes in 2007, due to the severe drought recorded
in Eastern Europe, but also because of smaller area (USDA FAS, 2008). However, according to
USDA FAS, production will reach normal levels in 2008 again.
Of all 27 EU countries, only 15 countries produce sunflower seeds. The leading producer of
sunflower seeds in the EU is France with a market share of 28%, followed by Hungary (21%).
Other important sunflower seeds producing countries are Spain (15%), Bulgaria (12%) and
Romania (11%).
Page 14 of 44

Compared to other producers in the world, the EU is a large producer of sunflower seeds. The
only bigger producers of sunflower seeds are the Russian Federation, Ukraine and Argentina.
Besides sunflower seeds, FAO statistics show that a small production of sesame seeds takes
place in the EU. Of all 27 EU countries, Italy (1,200 tonnes), Greece (65 tonnes) and Cyprus
(1 tonne) are the only countries producing sesame seeds.
Table 2.2
EU production of oil seeds 2003-2007, in 1,000 tonnes

2003
2004
2005
2006
2007
Average %
change
Total EU
6,340
6,832
6,023
6,761
4,848
-6%
France
Hungary
Spain
Bulgaria
Romania
Italy
Slovakia
Austria
Czech Republic
Germany
Greece
Portugal
Poland
Slovenia
Cyprus
1,505
992
763
789
1,506
239
253
71
115
73
15
18
1.3
0.1
0.001
1,457
1,186
821
1,079
1,558
276
196
78
85
70
7.8
14
4.5
0.1
0.001
1,510
1,108
381
935
1,341
291
195
81
95
67
8.8
2.4
7.4
0.1
0.001
1,440
1,181
607
1,197
1,526
309
229
85
101
62
16
4.1
5.4
0.2
0.001
1,376
1,032
743
564
521
272
135
63
52
47
19
17
5.0
0.4
0.001
-2%
1%
-1%
-8%
-23%
3%
-14%
-3%
-18%
-10%
6%
-2%
40%
37%
0%
Source: FAOSTAT (2009)
Organic
Since the early 1990s, organic farming has rapidly developed in most EU countries. Between
2005 and 2006, the organic land area increased by 7.7% to 6.8 million hectares, constituting
4% of the total agricultural area. However, oilseeds play only a minor role in organic farming.
Compared to conventional agriculture, less than one percent (around 100,000 hectares) of EU
oilseeds production is organic. Most important countries are France (19%), Italy (19%) and
Romania (16%). Most-produced oilseeds were sunflower seeds (FIBL and IFOAM, 2008).
Organic production of olives is a little more substantial, 280,000 hectares. Major producers are
Italy (38%), Spain (33%) and Greece (21%).
2.2
Trends
The construction and expansion of refineries is continuing, especially in The Netherlands,
Germany and Poland, partly explaining the increased imports of (unrefined) vegetable oils.
A general trend in the Northern EU is that soybean-crushing plants are being converted
into multi-seed crushing plants, capable of crushing seeds such as rapeseed. In
Germany and The Netherlands, most of this conversion has already taken place.
Geared by the increasing trend for a healthy diet among EU consumers, producers of
vegetable oils in the EU are developing products with added healthy components. The
French company Lesieur (http://www.lesieur.fr), for instance, has developed a mixture of
sunflower oil, rapeseed oil, grape seed and a fatty acid with high content of oleic oil called
Oleisol, with addition of vitamins D and E. These products are usually more expensive
than traditional oils, but cheaper than olive oil.
Food processors in the EU increasingly demand traceability of oils and fats destined for
application in food products. This means that there is an increasing need for suppliers to
Page 15 of 44

work with tracking and tracing systems and the related documentation. The trend towards
traceability also creates an increasing demand for proof of origin, which means that
production which follows traditional and ethnic-oriented processes acquires substantial
value.
Also, because of strict EU regulation on quality assurance and food safety the industry
increasingly demands certifications, like HACCP (Hazard Analysis Critical Control Points)
and ISO 9001 (International Organization for Standardisation) certification, as these
provide guarantees on quality assurance and food safety. For more information on these
systems, please go to Search CBI database at http://www.cbi.eu/marketinfo.
In relation to olive oil, several EU producers have introduced a new packaging in the form
of Tetra-Prism. This packaging facilitates the transport and storage of the product, and
improves the conservation of the olive oil by preserving its properties and keeping it away
from oxygen and light.
In response to demand stagnation in the main EU producing countries, olive oil companies
have invested in the creation of enterprises in non-EU producing countries. With a
comparative advantage over factors such as know-how and reputation and by having dutyfree access to markets outside the EU, these companies improve their access to the
international market.
The EU is taking the lead in investments in capacity in the biodiesel industry. The EU
controls approximately 80% of current biodiesel manufacturing capacity and will control
70% of the future expected capacity in 2010. Increased demand for biofuels resulted in an
ever-growing area of agricultural land designated for products intended for the biofuel
industry in countries where raw materials are sourced (e.g. Malaysia and Indonesia).
Since less space is left for the cultivation of other sorts of products, this puts great
pressure on the agricultural areas for human consumption. People all around the world are
increasingly concerned that this development could endanger food availability, particularly
in DCs. It is expected that the production of biofuel related crops will also suppress organic
production in the EU.
Moreover, the market for commodities like soy oil, palm oil, cocoa butter & fat and
sunflower oil was originally driven by small and medium-sized producers. Now it has
become very competitive and controlled by large-scale (multinational) producers.
American and Japanese multinationals and large international food and commodity groups,
such as Unilever, Cargill and ADM, are investing to develop partnerships with overseas
producers/exporters. This ultimately maintains their existing monopoly in the market.
Producers in countries like New Zealand and Australia are developing other types of edible
oils (i.e. fruit oils) to compete in the specialty oil niche market. The development of the
avocado oil market is a good example of this tendency. For more information, visit the
websites of Olivado (http://www.olivado.com) and The Grove (http://www.avocadooil.co.nz).
These trends will be influenced by the current economic crisis, however to what extent is not
clear yet and will differ from country to country. Nevertheless, it is clear that the economic
crisis is taking its toll on the oil milling business. Global vegetable oil prices have dropped
dramatically and export opportunities have weakened, leading to growing stocks and
diminishing profits (Finnish food group Raisio in Food Navigator, 2009). These effects have
also been felt by olive oil producers in Spain, as mentioned above. Also, the economic crisis
and the low crude oil price resulted in a reduction of biodiesel manufacturing.
2.3
+

A number of vegetable oils and fats, such as palm oil and palm kernel oil, is almost
entirely produced in DCs (notably Indonesia and Malaysia). Demand for these oils is
increasing, which offers more opportunities for DC producers of these oils.
Due to climatic conditions, many oil seeds and other raw materials for vegetable oils and
fats cannot be grown in the EU, and have to be imported from elsewhere (predominantly
from DCs). Within the scope of this survey only sunflower seeds are produced on a large
scale, however not enough to meet demand. Also, EU sesame seeds production is very
Page 16 of 44

+/-
+/-
2.4
limited and much smaller than industrial demand, which is growing. Thus, opportunities
for producers in DCs are expected to increase.
Since biofuel related crops are expected to suppress organic crops in the EU, where
demand for organics is expected to intensify, there are positive prospects for exporters of
organic vegetable oils and fats and oil seeds in DCs.
Since traceability, quality assurance and food safety are increasingly important to EU
vegetable oil producers, suppliers in DCs, who have tracking and tracing systems in place
as well as suppliers who have HACCP and ISO 9001 certification, have a major
competitive advantage in trading with EU importers. However, producers who are not
certified have a disadvantage; obtaining this certification is a real challenge, but could be
worth investigating.
The market for the mainstream vegetable oils is very competitive and controlled by
large-scale producers; increasing partnerships between large multi-national and overseas
producers/exporters jeopardise the role of independent small and medium-sized
producers in DCs. Small and medium-sized exporters in DCs will find more opportunities
for exporting speciality vegetable oils such as macadamia nut oil, Brazil nut oil and cocoa
butter substitutes.
Increased stocks of vegetable oils and fats amassed as a result of the economic crisis will
lead to a diminished demand for raw materials and thus fewer opportunities for exporters
in DCs.
Competition can be expected from producers in countries like New Zealand and Australia,
which are developing other types of edible oils (i.e. fruit oils) to compete in the specialty
oil niche market.
Useful sources
FAOs statistical database FAOSTAT http://faostat.fao.org
Interactive European Network for Industrial Crops and their Applications (IENICA)
http://www.ienica.net
The International Olive Oil Council (IOOC) - http://www.internationaloliveoil.org
Agra-net.com http://www.agra-net.com/portal/
FI Europe (international trade fair on food) http://europe2009.fi-events.com
Biofach (trade fair on organic products) http://www.biofach.de
Please note that names and websites of interesting players are given in the individual country
surveys.
Page 17 of 44

Trade channels for market entry
3.1
Trade channels
Figure 3.1 gives an overview of the distribution channels for vegetable oils and fats and oil
seeds. Please refer to the CBI market surveys covering the vegetable oils and fats (including
oil seeds) market in the individual EU member countries for names of major players.
Figure 3.1
European distribution channels for vegetable oils and oilseeds
End users: grocery,

industrial, etc.
(Re-)exports
Wholesale and
retail
Final processing
industry: food and
other applications
Refining industry
(refined oil)
Crushing industry
(crude oil)
Traders (importers,
agents, brokers)
Import
crude/processed oil
Palm fruit
plantations
Oil seeds
producers
Import
oil seeds
Trade channels vegetable oils and fat

Trade channels oil seeds
Vegetable oils and their raw materials can be traded directly from the source to the European
processing industry or through one or more traders (i.e agents, exporters and importers).
Rotterdam (The Netherlands) is the main trading centre for the EU vegetable oils and fats
trade. From trading centres, the oil is distributed by vessel, inland barge or truck to storage
facilities and customers. Rotterdam is strategically located to serve continental EU countries
with excellent port and infrastructural capacities, a multi-language business community and a
well-established trading community. London is the second EU port for the import of vegetable
oils and fats.
Page 18 of 44

Oil seeds used for vegetable oil production are traded in bulk. This trade is largely dominated
by multinational corporations, which in certain cases control the whole trade from producer to
the end user. This is particularly the case for oil seeds like soybeans. However, since this
survey focuses on oil seeds which are interesting for medium to small-scale DC exporters,
soybeans fall outside the scope of the survey.
Distribution intermediaries
A producer of vegetable oils and oil seeds can choose from a number of distribution channel
options available, depending on the requirements of the downstream companies. In general,
large volumes go straight from producer to processor, while suppliers of smaller volumes may
opt to use agents, brokers or importers.
Information about the origin of the materials is not as important to some downstream
companies, as ensuring that the goods meet the agreed specifications and price parameters,
and are delivered on time. In such cases, there can often be a larger number of intermediaries
in the supply chain and the goods could change hands many times. It is, for example, difficult
to trace the origin of most of the palm oil supplied today to the industry, because traceability is
lost early on in the supply chain.
On the other hand, a growing number of manufacturing and retail companies requires
traceability of the goods back to the producer of the raw material. These supply chains tend to
be shorter, because it is then easier to manage the administrative tasks of traceability.
Referring back to the example of palm oil, there is now a growing interest among many retail
companies to be able to trace the origins of the palm oil; this development is related to the
concerns over loss of tropical rainforest. However, traceability is also becoming increasingly
important for vegetable oils which are traded in smaller volumes than palm oil.
Looking at the distribution channels available to exporters in DCs, the first point to make is
that it is unlikely that manufacturing companies or retail companies will be acting as buyers of
unrefined vegetable oils from the country of origin. At the same time, it is possible that those
final processing/manufacturing or retail companies might approach traders or even producers,
especially if the vegetable oil is a type which is new to the industry. However, the business
transaction would rarely take place with those companies, because trading with unrefined
vegetable oils is not one of their competencies. Moreover, big companies such as ADM Europe
BV or Cargill will only trade directly with vegetable oil traders or suppliers if large quantities
are guaranteed.
Traders
Importers are specialised traders who import vegetable oils / fats and oil seeds for their own
account. They sell the goods to domestic buyers (i.e. wholesalers and processing industry) or
re-export the products to other countries. Another possibility is that the goods enter the
country only as transit trade.
Agents and brokers are independent intermediaries in the buying and selling of orders. An
agent operates on behalf of a particular buyer or seller, whereas a broker is not tied to an
individual buyer/seller. A brokers fee consists of a commission on the price. They do not take
title to the products, nor do the products physically pass through their hands. Brokers are wellinformed sources in respect to market trends, price levels and availability.
Traders are the most suitable distribution channels for DC exporters. This is particularly true in
the case where small volumes or specialised products are involved. On the other hand, due to
increasing concentration and consolidation, large processors in the EU also have direct
contracts with suppliers in DCs, thereby reducing the role of middlemen, like brokers and
traders.
Furthermore, among traders (according to industry sources), the most common way for
companies to get in contact with interesting suppliers is through brokers. Brokers have
Page 19 of 44

information with regard to price, quantity and supply time, which are the most important
factors related to trade in vegetable oils and fats.
Refining industry
Refiners produce vegetable oils as ingredients for making a wide variety of end products in the
grocery, compound feed and industrial sectors. The exporters first interesting point of contact
could be a vegetable oil trader or a company which not only buys the vegetable oils, but also
adds value by carrying out the refinement of the oil.
The benefit of supplying traders or trader/refiners is that they are likely to purchase bulk
quantities of oil. Moreover, due to new technologies, refiners can nowadays handle a variety of
oils, instead of just one.
Traders or trader/refiners sell their products either directly to processing/manufacturing
companies or they work with distributors or agents. The trader may also work with refining
companies, which offer a contract refining operation, so that the traders can supply
manufacturing companies.
Final processing/manufacturing industry
After refining, the vegetable oil is bottled for human consumption (cooking oil) or shipped in
bulk to the final processing industry. The latter uses the refined oil in a variety of grocery,
compound feed and technical products.
Should the exporter target processing/manufacturing companies directly, the latters
requirements are small and frequent orders. These create an administrative burden on the
supplier, who needs to be properly equipped to manage such situations and, at the same time,
has to keep costs down to remain competitive.
Wholesale and retail
As already mentioned, it is unlikely that wholesalers (and this is even more true for the retail
sector) will trade unrefined vegetable oil directly with DC exporters. Wholesalers and retailers
are more interested in oils, either refined and put in attractive bottles, or further processed in
food items.
Channels for organic products
Importers of certified vegetable oils are often not specialized in these products but in organic
food products in general. Furthermore, they are mostly dedicated primarily to regular, and not
specialty, qualities. These organic commodity importers are for example Tradin
(http://www.tradinorganic.com), Do-it (http://www.organic.nl) and Doens
(http://www.doensfood.com) in The Netherlands; Rapunzel (http://www.rapunzel.de), Gepa
(http://www.gepa.de), and Care Naturkost (http://www.care-natur.de) in Germany. An
example of an importer specialized in importing organic vegetable oils is Spack B.V.
(http://www.spack.nl/web/nl/startpagina.php) in The Netherlands. Next to these specialised
organic food ingredients traders, conventional trading houses play an increasing role in the
trade in organic products.
3.2
Price structure
The margins charged by the different intermediaries in the vegetable oil and oil seed trade are
influenced by many different factors like:
Type of vegetable oil / oil seed (species, quality, grade, organic or not);
Current and expected global market prices of the product;
Availability / number of sources for the particular product;
Cost of refining and losses from refining;
Trends in processes;
Exchange rate.
Page 20 of 44

All these factors make it extremely difficult to provide information on typical margins in the
trade of vegetable oils and fats and oil seeds.
Regarding organic vegetable oils and oil seeds, there is a price mark-up attached to the
product, which is also paid to the exporter. As the organically certified vegetable oils and oil
seeds may be traded in relatively smaller quantities, there can be an additional cost incurred
by the importer.
3.3
Useful sources
Brokers and traders are useful information sources for DC exporters. They have intimate
knowledge of the animal and vegetable oils and fats (including the oil seeds) markets in the
EU. Based on market requirements, they source their products worldwide. Moreover, many EU
importers have an Internet site where interested parties can find more information on the field
in which these importers are active. Please refer to the CBI market surveys covering the
vegetable oils and oil seeds market in individual EU member countries for more countryspecific information on trade structure, especially for lists of companies active in the vegetable
oil and oil seeds industries.
Interesting business-to-business sources are the following;
Agronetwork.com - http://www.agronetwork.com/global
IngrIDnet - http://www.ingridnet.com the site is a marketing instrument for companies
supplying ingredients to, among others, food industries. The database includes contact
details of 15,000 ingredient suppliers.
Organic-Bio - http://www.organic-bio.com/en/directory for organic oils & fats and oil seeds
companies.
FiBL - http://www.organic-europe.net/address_database/default.asp for finding many
different kinds of institutions in the organic sector.
Moreover, a trade fair is a good way to make contact with companies from all over the world,
which could be interested in new suppliers. Please refer to Chapter 4 of the EU Export
Marketing Guidelines for Vegetable Oils and Fats (including Oil Seeds) for more information on
trade fairs.
A selection of vegetable oils trade associations, which can provide you with more information,
is the following:
The Federation of Oils, Seeds and Fats Associations (FOSFA) - http://www.fosfa.org
National Institute of Oilseed Products - http://www.oilseed.org
Netherlands Oils, Fats and Oilseeds Trade Association - http://www.nofota.nl
Club Oils & Fats - http://www.oilsfats.nl
International Association of Seed Crushers (IASC) - http://www.iasc-oils.org
Seed Crushers and Oil Processors Association (SCOPA) UK http://www.scopa.org.uk/index.html
Page 21 of 44

Trade: imports and exports
Trade data of the vegetable oils and fats discussed here concerns mainly vegetable oils and
fats used for the production of foodstuffs. Other applications are taken out as much as
possible. Only for olive oil and cocoa butter, fat and oil this was not possible. The trade data of
these products include all applications. The trade data on oil seeds only exclude seeds for
sowing. Other applications are included.
4.1
Total EU imports

Between 2003 and 2007, total EU imports of vegetable oils and fats increased by an annual
average rate of 10% in value and 5% in volume, amounting to 8.9 billion / 9.4 million tonnes
in 2007. Italy was the main importer in the EU in 2006, accounting for 20% of total EU
imports, followed by Germany (15%), The Netherlands (14%), France (11%), Belgium (10%)
and the United Kingdom (9%). In the review period, all major EU importers showed increased
imports in terms of value. Poland, Spain, Sweden and the East European countries experienced
a particularly high increase in import value. The overall increase in the EU imports of
(unrefined) vegetable oils can be largely explained by the construction and expansion of
refineries in The Netherlands, Germany and Poland.
Imports of vegetable oils and fats directly sourced in DCs accounted for a large share of total
EU imports in 2007. These imports accounted for 40% of total imports in terms of value, and
56% in terms of volume. The real share of imports originally sourced in DCs is, nonetheless,
much higher. A large share of imports sourced in intra-EU countries also consisted of vegetable
oils and fats which were previously imported from DCs, and were then re-exported to other EU
countries. Moreover, a number of oils produced in the EU contain raw materials which have
also originally been sourced in DCs.
Imports of vegetable oils and fats sourced in DCs increased by an annual average rate of 10%
between 2003 and 2007. Malaysia and Indonesia were the leading DC suppliers of vegetable
oils and fats to the EU. Imports from Malaysia and Indonesia grew by annual averages of 4%
and 11%, respectively. Imports from Ukraine and Tunisia, the third and fourth largest DC
suppliers to the EU, increased sharply, by annual rates of 41% and 48% respectively in the
review period.
Table 4.1
EU Imports of vegetable oils and fats

2003-2007, million / 1,000 tonnes
Total EU, of which from

Intra-EU
Extra-EU ex. DC*
DC*
Source: Eurostat (2008)
* Developing countries
2003
value volume
2005
value volume
6,153
3,637
70
2,444
7,550
4,409
85
3,054
7,649
3,096
90
4,463
8,774
3,394
144
5,236
2007
Average
Value volume annual %
change in
value
8,882
5,193
135
3,553
9,435
3,961
221
5,252
10%
9%
18%
10%
Oil seeds
Total EU imports of oil seeds decreased by an annual average rate of 1% in value and 7% in
volume between 2003 and 2007, amounting to 729 million / 1.8 million tonnes in 2007.
Germany was the main EU importer in 2007, accounting for a 19% share of total EU imports of
oil seeds. Spain (18%), The Netherlands (17%), Italy (11%) and UK (5%) were the other
leading EU importers of oil seeds in 2007. All major importers of oil seeds in the EU, except
The Netherlands (-9%) showed an annual average increase in the value of imports between
Page 22 of 44

2003 and 2007. Especially the imports by Italy and the UK showed positive developments,
achieving average annual increases of 15% and 10% respectively.
The leading suppliers of oil seeds to the EU were Hungary, France and China. Imports from
intra-EU countries accounted for more than half of the total imports of oils seeds in the EU,
and increased at an annual average rate of 2% between 2003 and 2007.
Imports of oil seeds in the EU are only partially sourced in DCs, since a large portion of the oil
seeds is sourced within the EU. Spain, France and Hungary, for instance, are large producers
of oil seeds. Direct imports from DCs accounted for 34% of the total imports value of oil seeds,
and for 27% of the import volume in 2007. Between 2003 and 2007, imports from DCs
decreased by an annual average rate of 4%. China, Ukraine and India were the leading DC
suppliers of oil seeds to the EU. In the review period, imports from China had an annual
average increase of 13%, and imports from India by 15%. Imports from Ukraine however
decreased on average by 13%.
Several DCs, primarily those in the African continent, benefit from the climatic, agricultural and
logistical conditions necessary for the development of the oil seed sector. This is the case, for
example, for sesame seeds in Ethiopia, Eritrea, Tanzania, Uganda and Burkina Faso; for edible
groundnuts in Gambia, Central African Republic and Mali; and for shea nuts in Burkina Faso
and Mali. However, due to strategic reasons or to existing constraints, some of the DCs quoted
here may not be the leading exporters of the crops mentioned. Other advantages existing at
the moment in selected DCs include the low land costs, the low pest pressure and the
availability of relatively low-cost labour resources: oil crop cultivation and harvesting are
labour-intensive.
Table 4.2
EU Imports of oil seeds

2003-2007, million / 1,000 tonnes
2003
value
Total EU, of which from

Intra-EU
Extra-EU ex. DC*
DC*
759
379
88
293
volume
2,369
1,341
187
841
2005
value
775
434
64
278
volume
2,200
1,538
117
544
2007
value
729
409
71
249
Average
annual %
volume change in
value
1,791
1,172
134
485
-1%
2%
-5%
-4%

4.2
EU imports per product group

Within the group of vegetable oils and fats, olive oil was the leading import product in the EU,
accounting for a market share of 29% of total vegetable oils and fats imports in 2007. Between
2003 and 2007, total imports of olive oil increased by an annual average rate of 8% in value
and 3% in volume, amounting to 2.6 billion / 945 thousand tonnes in 2007. The import value
from DCs showed a sharp annual average increase of 21% in the review period, mainly
propelled by an equally sharp increase in imports from Tunisia, Morocco and Jordan.
Italy accounts for 50% of the EU imports of olive oil, which is mainly supplied by other EU
countries, as only Tunisia plays a significant role as a DC supplier. The imports from Italy only
show a modest increase below the EU average. This limited the overall increase of imports. In
2005, the olive-producing countries suffered from severe drought, which affected their olive oil
production. In order to meet the demand in the local market and exports, imports increased in
2005, particularly from Tunisia.
Page 23 of 44

Table 4.3
EU imports and leading suppliers of olive oil

2003 - 2007, share in % of value
2003
mln
Total EU,
of which from
Intra-EU
2005
mln
2007
mln
1,913 2,588
1,708 2,075
Extra-EU ex. DC*

1
DC*
204
Leading suppliers to EU in 2007

(Share in %)
2,584
2,151 Spain (51%), Italy (17%), Greece (11%), Belgium
(2%)
1.7 430 Tunisia (13%), Syria (2%), Turkey (1%)
3.0
510
Share
(%)
83%
0.1%
17%
The second largest product group within the group of vegetable oils and fats in terms of
imports value in 2007 was palm oil, which accounted for a market share of 25% of total EU
imports. Between 2003 and 2007, total EU imports of palm oil increased by an annual average
rate of 10% in value and 5% in volume, amounting to 2.2 billion / 4.3 million tonnes in
2006.
Table 4.4
EU imports and leading suppliers of palm oil

2003
mln
2005
mln
Total EU,
of which from
Intra-EU
1,539
468
1,686
558
Extra-EU ex. DC*

DC*
2.3
1,069
0.8
1,127
2007
mln

(Share in %)
2,238
802 The Netherlands (24%), Germany (5%), Italy
(2%)
8.7 1,428 Malaysia (25%), Indonesia (22%), Papua New
Guinea (8%), Colombia (5%), Thailand (1%)
Share
(%)
36%
0.4%
64%

*DCs
Imports directly sourced in DCs increased by an annual average rate of 8% in value between
2003 and 2007. This increase was mainly caused by the increase in imports from Indonesia.
Palm oil trade has been dominated by large multinational companies in Malaysia and
Indonesia. However, Colombia (+45%) and Thailand (+173%) show high growth rates. Among
other suppliers, note that The Netherlands is listed as the second largest supplier to the EU of
palm oil. However, this product is originally imported by The Netherlands from DCs, and then
re-exported to other EU countries.
Cocoa butter, oil and fat is a medium-sized imported product group in the EU. It accounted for
a market share of 17% of total vegetable oils and fats imports in 2007. Between 2003 and
2007, total EU imports of cocoa butter, oil and fat had an annual average increase of 10% in
value and 5 % in volume, amounting to 1.5 billion / 437 thousand tonnes in 2007.
Table 4.5
EU imports and leading suppliers of cocoa butter, oil and fat

2003
mln
Total EU,
of which from
Intra-EU
Extra-EU ex. DC*
DC*
2005
mln
1,072
691
1,344
885
6.4
375
2.9
456
2007
mln

Share in %
1,549
995 The Netherlands (48%), France (10%),
Germany (2%). UK (1%)
4.2 550 Ivory Coast (12%), Malaysia (7%),
Indonesia (4%), Ghana (4%), Nigeria
(2%)
Share
(%)
64 %
0.3%
36%

Page 24 of 44

Imports from DCs, of which Ivory Coast, Malaysia and Indonesia were the main suppliers, had
an increase in value of 10% in the review period. It is important to note that, although The
Netherlands is the leading supplier of cocoa butter, fat and oil to the EU, the cocoa beans used
in the production of these products are imported from DCs.
Imports of sunflower & safflower oil also accounted for 18% of total EU imports of vegetable
oils and fats in 2007. Between 2003 and 2007, imports of sunflower & safflower oil had an
annual average increase of 17% in value and 14% in volume, amounting to 1.6 billion/ 2.4
million tonnes in 2007. The import value from DCs had an annual average increase of 15% in
the review period, mainly caused by an annual average increase of 41% in imports from
Ukraine, the EUs main supplier of sunflower & safflower oil in 2007. Also South and East
European countries show high average annual growth rates. Imports from Argentina, the EUs
second largest supplier in DCs, decreased by an annual average rate of 27% between 2003
and 2007.
Table 4.6
EU imports and leading suppliers of sunflower & safflower oil

2003
mln
2005
mln
Total EU,
of which from
Intra-EU
869
525
1,146
646
Extra-EU ex. DC*

DC*
18
326
73
427
2007
mln

Share in %
1,622
947 The Netherlands (19%), France (15%),
Belgium (7%), Hungary (5%)
112 Russia (7%)
563 Ukraine (29%), Argentina (3%), Moldova
(1%)
Share
(%)
58%
7%
35%

Coconut oil, palm kernel and babassu oils comprises a medium-sized to small imported product
group in the EU. It accounted for a share of 7% of total EU imports of vegetable oils and fats in
2007. Between 2003 and 2007, imports of coconut oil in the EU increased by an annual
average rate of 8% in value but a decrease of 0.3% in volume, amounting to 616 million /
1.0 million tonnes in 2007. In the review period, imports from DCs had an annual average
increase of 8% in value. Imports from Indonesia and Malaysia, the EUs main and fourth
largest DC suppliers, showed large increases of 12% and 10% respectively between 2003 and
2007. The Philippines, the second largest supplier, showed a more modest increase with 2% in
that period. Note that The Netherlands is a leading supplier of coconut oil in the EU, but that
the basic products for coconut oil are imported by The Netherlands from DCs.
Table 4.7
EU imports and leading suppliers of coconut oil

2003
mln
2005
mln
Total EU,
of which from
Intra-EU
454
105
537
105
Extra-EU ex. DC*

DC*
2.7
347
1.5
431
2007
mln

Share in %
616
135 The Netherlands (15%), Germany (4%),
Denmark (1%)
3.0 478 Indonesia (29%), Philippines (25%), Malaysia
(11%), Papua New Guinea (8%), Ivory coast
(2%)
Share
(%)
22%
0.5%
78%

Within the group of vegetable oils and fats, groundnut oil is a rather small import product in
the EU. It accounted for a market share of 2% in 2007. Between 2003 and 2007, EU imports
of groundnut oil decreased by an annual average rate of 6% in value and 5% in volume,
amounting to 142 million / 145 thousand tonnes in 2007. The import value from DCs
Page 25 of 44

decreased by an annual average rate of 6% in the review period, when a particularly sharp
annual decline of 15% was observed in imports from Argentina. The imports from Senegal and
Brazil showed growth in the review period.
Table 4.8
EU imports and leading suppliers of groundnut oil

2003
mln
2005
mln
Total EU,
of which from
Intra-EU
180
45
134
44
Extra-EU ex. DC*

DC*
23
113
0.6
89
2007
mln

Share in %
142
53 Belgium (18%), France (7%), The
Netherlands (6%)
0.7 USA (0.4%)
88 Senegal (39%), Argentina (16%), Brazil
(6%), Nicaragua (1%), Gambia (1%)
Share
(%)
37%
0.5%
62%

Maize oil is a small import product in the EU. It accounted for a market share of 1% of total
imports of vegetable oils and fats in 2007. Between 2003 and 2007, EU imports of maize oil
increased by an annual average rate of 1% in value but decreased by 0.9% in volume,
amounting to 113 million / 153 thousand tonnes in 2007. The import value from DCs
increased by an annual average rate of 16% in the review period, mainly caused by the sharp
annual increase of 15% in imports from Brazil, the leading DC supplier of maize oil to the EU.
Table 4.9
EU imports and leading suppliers of maize oil

2003
mln
Total EU,
of which from
Intra-EU
Extra-EU ex. DC*
DC*
2005
mln
108
89
95
89
14
5.3
0.7
5.0
2007
mln

Share in %
113
102 Belgium (37%), France (15%), Italy (10%),
The Netherlands (7%), UK (7%)
1.0 USA (0.8%)
9.5 Brazil (7 %), Tunisia (0.6%), Turkey (0.4%)
Share
(%)
91%
0.9%
8%
Within the group of vegetable oils and fats, sesame oil was the smallest import product in the
EU in 2007, with a market share of 0.2%. Between 2003 and 2007, imports of sesame oil in
the EU increased by an annual average rate of 1% both in terms of value and volume,
amounting to 18 million / 8.5 thousand tonnes in 2007. The import value from DCs increased
by an annual average rate of 4% in the review period, due to a particularly large increase
(+17%) in imports from Mexico, the leading supplier of sesame oil to the EU.
Table 4.10
EU imports and leading suppliers of sesame oil

2003
mln
2005
mln
Total EU,
of which from
Intra-EU
17
7.2
19
7.5
Extra-EU ex. DC*
3.5
2.8
DC*
5.8
8.7
2007
mln

Share in %
18
6.8 The Netherlands (13%), Germany (10%), UK
(6%), France (5%), Spain (1%)
3.9 Singapore (13%), Hong Kong (5%), Japan
(2%)
6.8 Mexico (19%), China (9%), India (5%), Turkey
(2%), Malaysia (3%), Nicaragua (1%)
Share
(%)
39%
22%
39%

Page 26 of 44

Oil seeds
Within the group of oil seeds, sunflower seeds were by far the leading import product in the EU
in 2007, with a market share of 83%. However, between 2003 and 2007, imports of sunflower
seeds in the EU decreased by an annual average rate of 2% in value and an annual decrease
of 8% in volume, amounting to 607 million / 1.6 million tonnes in 2007. The import value
from DCs decreased by an annual average rate of 8% in the review period, mainly caused by
the decrease in imports from Ukraine. The imports from China, however, increased on average
by 14% per annum in the review period.
Table 4.11
EU imports and leading suppliers of sunflower seeds

2003
mln
2005
mln
Total EU,
of which from
Intra-EU
657
353
639
398
Extra-EU ex. DC*

DC*
87
218
63
178
2007
mln

Share in %
607
381 Hungary (18%), France (12%), Slovakia
(5%), Romania (5%), Germany (4%)
71 USA (7%), Russia (3%), Israel (2%)
156 China (11%), Ukraine (9%), Argentina (2%),
Turkey (0.9%)
Share
(%)
63%
12%
26%

Sesame seeds are a medium-sized import product in the EU. In 2007, they accounted for 16%
of EU imports of oil seeds. Between 2003 and 2007, imports of sesame seeds in the EU
increased by an annual average rate of 6% in value and 3% in volume, amounting to 117
million / 129 thousand tonnes in 2007. The import value from DCs increased by an annual
average rate of 7% due to a substantial increase in imports from India, Ethiopia and Paraguay.
Table 4.12
EU imports and leading suppliers of sesame seeds

2003
mln
2005
mln
Total EU,
of which from
Intra-EU
91
21
114
25
Extra-EU ex. DC*

DC*
0.9
69
0.6
88
2007
mln

Share in %
117
25 The Netherlands (10%), Germany (4%),
Greece (2%), UK (2%)
0.6 92 India (47%), Ethiopia (8%), Sudan (5%),
Guatemala (5%), Paraguay (4%), Venezuela
(2%), Mexico (1%), Egypt (0.8%)
Share
(%)
21%
0.5%
78%

With a market share of 0.6% in 2007, copra is a rather small import product within the group
of oil seeds in the EU.
Table 4.13
EU imports and leading suppliers of copra

Total EU,
of which from
Intra-EU
Extra-EU ex. DC*
DC*
2003
mln
2005
mln
11
4.8
0
5.9
22
10
0
12
2007
mln

Share in %
4.5
2.7 The Netherlands (51%), Spain (6%)
0 1.8 Papua New Guinea (18%), Solomon Islands
(13%), Vanuatu (8%), Sri Lanka (0.3%)
Share
(%)
61%
0%
39%

Page 27 of 44

Between 2003 and 2007, imports of copra in the EU decreased by an annual average rate of
19% in value and 16% in volume, amounting to 4.5 million / 20 thousand tonnes in 2007.
The import value from DCs decreased by an annual average rate of 26% in the review period.
4.3
The role of DCs

In 2007, 40% of the total EU imports of vegetable oils and fats was supplied by DCs. Between
2003 and 2007, imports of vegetable oils and fats from DCs increased by an annual average
rate of 10% in value and 4% in volume, amounting to 3.6 billion / 5.3 million tonnes in
2007. The Netherlands was the leading importer of vegetable oils and fats from DCs in the EU,
accounting for 28% of the total imports value supplied by DCs, followed by Italy (17%),
Germany (11%) and Spain (11%).
Table 4.14
Imports of vegetable oils and fats from DCs

2003-2007, million / 1,000 tonnes
2003
value
Total EU
2,445
The Netherlands
840
Italy
397
Germany
257
Spain
164
France
233
United Kingdom
283
Belgium
67
Poland
24
Sweden
5.0
Greece
39
Denmark
42
Romania
23
Bulgaria
12
Ireland
5.5
Lithuania
5.7
Portugal
15
Slovenia
5.8
Hungary
12
Austria
1.9
Finland
0.0
Cyprus
2.9
Estonia
0.6
Slovakia
2.8
Malta
0.0
Czech Republic
7.6
Latvia
0.9
Luxembourg
0.0
2005
volume
4,463
1,717
547
613
310
186
591
129
7.5
10
85
94
45
23
8.5
9.6
28
8.9
20
2.4
0.0
5.6
0.6
4.8
0.0
16
1.4
0.0
value
2007
volume
3,055
920
649
303
284
304
281
72
45
19
34
57
26
8.5
5.3
6.4
20
2.9
1.9
1.9
6.0
1.2
1.7
2.0
0.0
2.1
0.4
0.0
5,236
1,903
672
777
432
279
582
136
56
45
76
129
45
14
8.1
11
35
4.0
3.4
2.9
13
2.4
0.9
3.5
0.0
4.0
0.7
0.0
value
3,553
993
611
389
386
344
311
83
76
74
68
64
54
18
18
16
13
9.1
7.0
5.1
4.8
3.2
2.9
1.8
0.9
0.8
0.5
0.0
volume
5,252
1,751
631
722
533
308
482
122
101
131
123
115
79
32
26
29
18
13
12
6.2
7.7
4.8
1.3
2.9
0.5
1.4
0.7
0.0
Average
annual %
change in
value
10%
4%
11%
11%
24%
10%
2%
6%
34%
97%
15%
11%
24%
10%
35%
30%
-3%
12%
-12%
27%
595%
2%
46%
-10%
151%
-42%
-13%
0%
Indonesia and Malaysia were the leading suppliers in DCs, both accounting for a market share
of 8%. Imports from most DCs showed an annual average increase between 2003 and 2007,
caused by a particularly sharp increase in imports from Ukraine and Tunisia.
Please, refer to the individual country surveys for imports per product group by individual EU
member states.
Oil seeds
In 2007, DCs supplied 34% of total EU oil seeds imports. Between 2003 and 2007, imports of
oil seeds from DCs decreased by an annual average rate of 4% in value and 13% in volume,
Page 28 of 44

amounting to 249 million / 485 thousand tonnes in 2007. Germany was the leading importer
of oil seeds from DCs, accounting for 23% of the market share in 2007.
China, Ukraine and India were the leading DC suppliers of oil seeds. Imports from China and
India showed an annual average increase in the review period, while imports from Ukraine
showed a sharp decrease. The USA was also an important supplier to the EU with a market
share of 6%.
Please refer to the country surveys for imports per product group by individual member states.
Table 4.15
Imports of oil seeds from DCs

2003-2007, million / 1,000 tonnes
2003
value
volume
Total EU
293
Germany
37
Spain
40
The Netherlands
74
Greece
19
United Kingdom
12
Poland
0.0
Italy
20
Romania
4.5
France
38
Belgium
7.9
Denmark
1.7
Sweden
1.2
Austria
0.9
Czech Republic
1.3
Lithuania
1.7
Bulgaria
1.2
Cyprus
1.2
Hungary
0.2
Latvia
0.3
Slovakia
0.3
Portugal
29
Estonia
0.4
Finland
0
Malta
0
Ireland
0
Slovenia
0.3
Luxembourg
0
Total
293
* No data was available for 2003
4.4
841
50
136
197
35
19
0.0
73
19
155
24
5.4
1.2
2.5
1.5
4.3
4.1
1.5
0.3
0.6
0.4
108
0.7
0.0
0.1
0
0.4
0
841
2005
value
volume
278
65
59
44
19
20
12
12
9.3
4.8
17
2.8
2.7
1.1
1.8
2.6
1.4
1.7
0.7
0.7
0.2
0.2
0.4
0.2
0.1
0
0.1
0
278
544
75
177
83
23
22
16
33
36
4.3
50
3.0
2.4
1.2
1.9
4.1
4.3
2.0
0.9
0.9
0.3
0.6
0.7
0.4
0.1
0
0.3
0
544
2007
value
volume
249
56
44
37
24
20
13
12
11
10
4.8
2.9
2.4
2.3
2.3
2.2
2.0
1.5
0.6
0.5
0.3
0.2
0.2
0.1
0.1
0.1
0.1
0
249
485
74
130
72
33
24
18
33
39
26
13
2.9
2.3
2.5
3.1
3.4
4.4
1.8
0.8
0.7
0.3
0.5
0.3
0.2
0.2
0.1
0.1
0
485
Average
annual %
change in
value
-4%
11%
2%
-16%
5%
15%
*4%
-13%
24%
-28%
-12%
15%
19%
26%
17%
7%
14%
7%
32%
19%
-4%
-71%
-16%
47%
30%
675%
-30%
0%
-4%
so the average annual increase between 2005 2007 was calculated.
Exports

The data concerning EU exports of vegetable oils and fats should be interpreted and used with
caution. Some of the leading exporters, such as The Netherlands, account for a large share of
exports which are, in fact, products imported from DCs, further processed and subsequently
re-exported at a higher value.
Total EU exports of vegetable oils and fats increased by an annual average rate of 9% in value
and 7% in volume between 2003 and 2007, amounting to 6.7 billion / 4.6 million tonnes in
2007. Spain accounted for 28% of these exports, followed by The Netherlands, which
accounted for 27% of exports. Most exports were destined to intra-EU countries such as Italy
Page 29 of 44

and Germany. The USA was the most popular destination for EU exports of vegetable oils and
fats outside the EU.
Table 4.16
EU exports of vegetable oils and fats

2003-2007, million / 1,000 tonnes
2003
value
Total EU
4,695
Intra-EU
3,413
Extra-EU
1,282
2005
volume
3,470
2,751
719
value
2007
volume
5,819
4,227
1,592
3,834
3,111
723
value
volume
6,716
4,976
1,740
4,555
3,808
747
Average annual
% change in
value
9%
10%
8%
Oil seeds
Total EU exports of oil seeds increased by an annual average rate of 7% in value and 2% in
volume, amounting to 619 million / 1.9 million tonnes in 2007. Hungary, France, Bulgaria
and Romania were the largest exporters of oil seeds in the EU in 2007, with market shares of
21% and 18%, 17% and 16% respectively. The most popular destinations for EU exports of oil
seeds were other EU countries, of which Spain, Germany and The Netherlands represented the
largest markets. A high annual average increase of 45% in exports destined to extra-EU
countries was observed between 2003 and 2007, mainly caused by increasing exports to
Turkey.
Table 4.17
EU exports of oil seeds

2003-2007, million / 1,000 tonnes
2003
value
Total EU,
of which to
471
Intra-EU
385
Extra-EU
86
4.5
2005
volume
value
1,761
1,436
325
592
472
120
2007
volume
2,212
1,739
474
value
619
462
157
volume
1,926
1,385
541
Average annual
% change in
value
7%
5%
16%
EU imports of vegetable oils and fats increased substantially between 2003 and 2007,
driven by a boost in worldwide demand for oils. The share of DC suppliers in these
imports remained with 40% the same between 2003 and 2007, providing opportunities
for exporters of vegetable oils and fats in DCs. Moreover, it should be pointed out that
the share of DCs is even more substantial than that reported, since part of the intra-EU
trade concerns exports of oil and fats which were previously imported from DCs and then
re-distributed to other EU countries.
+
An increase in imports was observed for all products within the group of vegetable oils
and fats, with the exception of groundnut oil. The imports from DCs show the same
development as for all products concerned (except groundnut oil), an increase being
observed. A particularly large increase was observed in imports of olive oil and maize oil
sourced in DCs.
+
Vegetable oils and fats in the EU form an interesting group of products, offering
increasing opportunities for exporters in DCs. Coconut oil and palm oil and groundnut
oil are particularly interesting oils for DC suppliers, since they supplied more than 60% of
the import values of these products in 2007.
+
Within the group of oil seeds, an increase in total imports was observed for sesame
seeds between 2003 and 2007. Sesame seeds are also predominately imported directly
from DCs. This provides positive prospects for suppliers in DCs of this product.
+/- Regarding copra, more than half of the import value was supplied to the EU by DCs. In
2007 the imports from DCs, however, showed a substantial decrease.
Page 30 of 44

+/-
Most of the trade in vegetable oils and fats and oil seeds takes place in bulk. Since a
substantial part of this trade is in the hands of big companies, some DC exporters could
find more opportunities by focusing on markets for niche products such as: high-quality
sesame seed, sesame oils, shea nuts and shea butter, organic oils and oil seeds.
Olive oil and cocoa butter, oil and fat, sunflower oil and maize oil are less interesting
products for DCs, since the greater part of these products was supplied by other EU
countries in 2007.
EU imports of oil seeds did not have a positive development in the review period. Total
imports, including imports from DCs, had an annual average decrease between 2003
and 2007. In addition, the share of DC suppliers in total EU imports decreased between
2003 to 2007. The current developments in EU imports of oil seeds indicate that DCs are
losing ground in the EU market for this product group.
In general, the supply of oil seeds to the EU is less interesting than the supply of
vegetable oils and fats. This has to do with the fact that most of the crushing of oil seeds
already happens in the country/region of origin, after which the oil is exported to the
country of destination. This is a clear limitation to the supply of oil seeds by DCs.
Exporters should take into account that the same trend can be an opportunity for one exporter
but a threat to another. Please review these opportunities and threats according to your own
situation.
4.6
Useful sources
EU Expanding Exports Helpdesk
http://exporthelp.europa.eu
go to: trade statistics
Eurostat official statistical office of the EU
http://epp.eurostat.ec.europa.eu
go to themes on the left side of the home page
go to external trade
go to data full view
go to external trade - detailed data
Understanding Eurostat: quick guide to easy Comext

http://epp.eurostat.ec.europa.eu/newxtweb/assets/User_guide_Easy_Comext_20080117.pdf
ITC Trade Map free subscription for DCs
http://www.trademap.org
USDA Foreign Agricultural Service Oilseeds: The World Market and Trade Archives
http://www.fas.usda.gov/oilseeds_arc.asp
Page 31 of 44

Price developments
5.1
Price developments
Developments on the Chicago Board of Trade exchange are leading indicators in the price
setting of the different vegetable oils, while Kuala Lumpur (Malaysia) is the main exchange
market for palm oil.
Due to improved technology, different vegetable oil products are substitutable: this has a
major impact on price settings. For example, as mentioned in Chapter 1 of the underlying
survey, palm oil is becoming increasingly popular in the food industry and, consequently, also
driven by the demand for palm-based biofuels, the price for palm oil is still on the rise.
Other factors also influence prices of vegetable oils and oil seeds:
According to industry sources, the continuous demand for biofuels is expected to raise the
price for agricultural raw materials.
Increasing welfare in the world and in the new EU member states in particular, leads to
increased demand for vegetable oils and fats and a switch in consumption to more
luxurious and expensive oils.
Decline in the consumption of animal fat to the advantage of vegetable oils and fats, which
offer healthier alternatives.
Quantities of vegetable oils and oil seeds in stocks. Higher stocks generally lead to lower or
at least stable prices.
Due to the resistance to genetically modified soybean among EU consumers, many
European food-processing companies switched to the use of other oils and oil seeds,
making the latter products scarcer.
The climatic conditions. For example, the weather in Spain, the worlds leading producer of
olive oil, has an enormous impact on the development of prices. Despite advanced
technological developments in Spain to make olive oil production independent of climatic
variations, climatic conditions still play a role in the overall output in this sector. During the
European summer time, there is low demand and low offer. Prices for next year can be
forecasted with the help of the rain precipitations in the autumn, which influences the size
of the olives.
Most of these factors exert an upward pressure on the prices for all selected vegetable oils and
fats during recent years. Prices for all the vegetable oils shown here even doubled in less than
eighteen months time. However, since the economic crisis prices fell sharply, as shown in
figure 5.1. The World Bank only provides price data of the products given, however most other
products have shown a similar trend in prices.
Olive oil prices have developed differently. Olive oil is relatively expensive compared to other
vegetable oils. However, prices have been falling for a longer time now. The economic
downturn fuelled this downward spiral. According to the International Olive Council, prices paid
to producers of Jaen and Chania extra virgin olive oil have fallen by 29% to 1.82 and 1.80
per kilo respectively over the last 12 months. More expensive Bari extra virgin olive oil fell
25% to 2.32 per kilo.
Regarding many end-products containing vegetable oils (e.g. margarine), there is an almost
direct relationship between the price of the end-product and the amount of the raw material
that is used in it. Every finished product has its target price which the manufacturer must hit,
in order for the company to achieve its profit margin from that product. However, the type of
product also affects the amount of raw material used. A high-quality product requires the use
of more expensive ingredients. At the same time, the formulator can vary the amount of
ingredients used in a product, to achieve both functional benefits and price targets.
Page 32 of 44

Figure 5.1
Price developments of 4 of the selected vegetable oils and copra 20062009, in per tonne
1800
1600
1400
1200
982
1000
800
600
518
442
400
342
200
0
Apr-Jun
2006
Jul-Sep
2006
Oct-Dec
2006
Coconut oil
Jan-Mar
2007
Apr-Jun
2007
Copra
Jul-Sep
2007
Oct-Dec
2007
Groundnut oil
Jan-Mar
2008
Apr-Jun
2008
Palm oil
Jul-Sep
2008
Oct-Dec
2008
Jan-Mar
2009
Palmkernel oil
Source: The World Bank, Commodity Price data (2007, 2008, 2009)
Note:
- Coconut oil (Philippines/Indonesian), bulk, c.i.f. Rotterdam
- Copra (Philippines/Indonesian), bulk, c.i.f. N.W. Europe
- Groundnut oil (any origin), c.i.f. Rotterdam
- Palm oil (Malaysian), 5% bulk, c.i.f. N. W. Europe
- Palm kernel Oil (Malaysian), c.I.f. Rotterdam
Besides the factors mentioned above, the prices of large volumes of oil seeds depend on
exchange rates, in which the value of the dollar is a dominant factor. Prices of most products
are not fixed and may fluctuate strongly, depending on season and global yields. Especially in
these times of economic crisis, prices have been very dynamic, as shown in the price
development of copra in figure 5.1. Therefore, it is essential to have continuous access to upto-date price information. Furthermore, the price of the oil seeds is heavily dependent on their
quality. Oil seeds are traded by standard contracts, in which the price for a particular quality is
stated.
Table 5.1
High/low prices for selected oil seeds on main European port basis,
January-May 2009, prices in per tonne
OIL SEEDS
Jan-May
Low
Sunflower seed
US hulled cif
Ukraine unhulled Black Sea Origin
Sesame seed
Indian natural cif Europe
Indian origin mechanically hulled & sun dried
Copra
Philippines, cif Rotterdam
Source: Public Ledger (June 2009)
Jan-May
High
969
220
1212
265
701
947
2007
2423
279
423
When negotiating prices with a buyer, it is critical to know the bottom line a point below
which you will not go. That calls for an in-depth understanding of the costs of the product and
the overheads and, crucially, how the cost of overhead is shared across the range of products.
Page 33 of 44

A single product has to absorb the entire overhead. At the same time, costs are also affected
by factors such as quality, reliability, uniqueness of the supply and the attitude of the buyer.
5.2
Useful sources
It is important from the outset to emphasise that it is difficult to obtain information on the
prices which are paid for goods in the country of origin, especially as some of the selected
vegetable oils and oils seeds are still considered speciality products. Brokers and traders form
the main source of price information, as they are in daily touch with the major trading centres
around the world. Moreover, there is a need for market research and market intelligence. It
can be easier if similar items are already exported from the same country, because it may be
possible to obtain crude price data from published statistics.
In general, exporters should receive regular information from their European business partner.
The best up-to-date price information on vegetable oils, as well as on oil seeds, can be
obtained from the weekly The Public Ledger. Furthermore, major brokers and traders publish
regular market reports to advise their customers about supply, demand and price
developments.
The Public Ledger and Foodnews magazine - http://www.agra-net.com

CommodityIndia.com - http://www.commodityindia.com
Oil World Magazine - http://www.oilworld.biz/app.php
The Chicago Board of Trade - http://www.cbot.com
World Bank, Commodity Price Data, Pink Sheets - http://www.worldbank.org
Price developments of coconut, palm kernel and palm oil, can be found on the Internet site
of MVO (The Dutch Commodity Board for Margarine, Fats and Oils) - http://www.mvo.nl
UNCTAD Commodity Price Statistics http://www.unctad.org/Templates/Page.asp?intItemID=1889&lang=1
Asian and Pacific Coconut Community (APCC) - http://www.apccsec.org
FAS Online - United States Department of Agriculture http://www.fas.usda.gov/oilseeds/circular/2006/06-03/toc.htm
Page 34 of 44

Market access requirements
As a manufacturer in a DC preparing to access EU markets, you should be aware of the market

access requirements of your trading partners and the EU governments. Requirements are
demanded through legislation and through labels, codes and management systems. These
requirements are based on environmental, consumer health and safety and social concerns.
You need to comply with EU legislation and have to be aware of the additional non-legislative
requirements which your trading partners in the EU might request.
For information on legislative and non-legislative requirements, go to Search CBI database at
http://www.cbi.eu/marketinfo, select food ingredients and the EU in the category search,
click on the search button and click on market access requirements. Select European buyer
requirements: vegetable oils and fats.
Another source of information on legislation is Fediol, which provides a clear overview of EU
legislation relevant for the oils and fats industry at http://www.fediol.be/5/index.php and MVO
(The Dutch Commodity Board for Margarine, Fats and Oils) at
http://www.mvo.nl/Wetenregelgeving/KwaliteitenVoedselveiligheid/tabid/122/language/nlNL/Default.aspx. At the same link, Fediol also provides several codes of practice.
Requirements for organic products are very strict. For organic legislative and non-legislative
requirements, go to Search CBI database at http://www.cbi.eu/marketinfo, and search by
keyword for organic and select Market access requirements.
Packaging, marking and labelling
The EU Commission and the International Maritime Organisation (IMO) in London issue
packaging requirements for crude and (semi) processed products. Directive 96/3/EC regulates
the sea transport in bulk of liquid oil and fats, in respect to food hygiene standards. This
directive was amended and corrected in 2004 by Directive 2004/4/EC. For more information on
EU or country-specific legislation on vegetable oils and fats go to http://faolex.fao.org/ and
search for vegetable oils or oil seeds.
The Maritime Safety Division of IMO has advised that animal and vegetable oils and fats are, to
some extent, a flammable product. For that reason, oils and fats transported by ships are
classified under class 4.2 of the International Maritime Dangerous Goods Code (IMDG). It is
strongly recommended that exporters in DCs comply with the IMO Guidelines for the Packing
of Cargo in Freight Containers or Vehicles.
The overall trend in Europe is towards facilitating the re-use and recycling of packaging
through incentives. In order to harmonise the different forms of legislation, the EU has issued
a directive for packaging and packaging materials (Directive 2004/12/EC) in which minimum
standards are regulated.
Furthermore, the world-wide oils and fats trade has established its own set of grading and
quality standards. These are laid down in a range of standard contracts issued by the
Federation of Oils, Seeds and Fats Associations Ltd (FOSFA), which represents 830 members in
76 countries. Contracts include well-defined product descriptions for each type of product.
Further information can be obtained at http://www.fosfa.org.
Clear communication with your European trade partner regarding the required packaging is of
the utmost importance when trading with the EU. Your partner should know what is officially
required and state his specific preferences.
Furthermore, Fediol, the EU Oil and Protein Meal Industry, has developed a code of practice for
the transport in bulk of oils and fats in or within the European Union, which can be downloaded
from the following link - http://www.fediol.be/5/index2.php.
Page 35 of 44

Additional information on export packaging can be found at the website of the International
Trade Centre (ITC) - http://www.intracen.org/ep/packit.htm
Finally, according to industry sources, vegetable oils can best be transported to the EU in
crude form. This has to do with the fact that most vegetable oils and fats are transported by
ship, which usually takes 4 to 5 weeks to reach their destination. The time for transportation is
in general too long to secure the stability and quality of refined vegetable oils and fats.
Information on tariffs and quota can be found at http://exporthelp.europa.eu
Page 36 of 44

Opportunity or threat?
At the end of the chapters on industrial demand, production and trade, a short description was
given of potential opportunities for and threats to exporters in DCs. However, the same
development or trend can be an opportunity for one exporter and a threat to another.
Exporters should therefore analyse if the developments and trends discussed in the previous
chapters provide opportunities or threats. The outcome of such an analysis depends on the
specific situation of an exporter.
Trade data for the EU reveal that the trade of vegetable oils and fats and oil seeds in the EU is
characterised by the exports, as well as re-exports, of substantial amounts of goods.
Moreover, the raw material for various vegetable oils and fats is imported from DCs, further
processed in the EU and then re-exported and/or sold to domestic users.
Since a large part of the EU imports (and re-exports) of vegetable oils and oil seeds originates
in DCs, these developments could entail great opportunities for exporters in those countries.
On the other hand, the opportunities are not without hazards. The trade of a number vegetable
oils and oil seeds is completely in the hands of large-scale multinational corporations (e.g.
palm oil, sunflower oil and soybean oil), which makes it hard for small or medium-sized players
to enter the market.
Therefore, as already mentioned, DC suppliers may find more opportunities in organic and
other specialised vegetable oils and fats. However, the current economic crisis forms a real
threat to exporters of vegetable oils and fats (including oil seeds) in DCs. Consumers are
scaling down, the food industry has more difficulty selling its products and stocks are piling up.
This has lowered industrial demand and prices have collapsed. This does not mean that all
opportunities mentioned before have vaporised. For example, the organic market is still
growing, although at slower pace than before. Exporters of organic products are faced with
opportunities of a growing market on the one hand, but with lowering premiums on the other.
Also, the economic downturn has fuelled the health trend, as consumers now more than ever
recognise the importance of preventing disease and poor health. Many food manufacturers
have adopted health and wellness innovation strategies as a way to manage the economic
downturn and functional food products are becoming mainstream. This means opportunities for
DC exporters of vegetable oils & fats and oil seeds containing functional elements, as demand
is increasing. However this poses threats to exporters of vegetable oils and fats who sell
products which not contain these functional elements, as they will find it increasingly difficult
to find a market for their products.
Page 37 of 44

Appendix A
Product characteristics
This survey covers the EU market for vegetable oils & fats and oil seeds used in the food
industry. Only where relevant, information on other sectors will be included. Moreover, the use
of vegetable oils and fats in the cosmetics industry is covered in the CBI survey covering the
market for natural ingredients for cosmetics.
Although this survey covers the market for both vegetable oils & fats and oil seeds, the focus
is more on the first group, as the size of the trade in vegetable oils and fats is far more
substantial than the trade in oil seeds.
Furthermore, not all the products usually classified under these two groups are covered in this
survey (e.g. soybean and its oil, rapeseed and its oil, linseed and its oil). This survey focuses
only on products which are, for a considerable part, supplied by small and medium-scale
producers in DCs, or which are important for suppliers in DCs in one way or another. For this
reason, the focus of the survey is on niche markets. Nevertheless, some large product groups
(e.g. cocoa butter) are included as they can illustrate trade channels, for instance, but also
because substitutes for these products may be interesting.
Information on other vegetable oils and oil seeds is only mentioned as far as it is relevant for a
more thorough picture of the whole market. Finally, although not specifically listed below,
some speciality products like argan oil and shea nuts and shea butter are also briefly
mentioned, as far as information availability makes it possible.
Fats which are liquid at room temperature are often referred to as oil. Vegetable oil originates
from seeds containing oil, which are mainly processed by crushing or solvent extraction.
Vegetable oils and fats constitute about 80% of total edible oils and fats production. They form
major constituents of the food chain. The performance and use of vegetable oils is determined
by the fatty-acid composition.
Cocoa butter, fat & oil
Cocoa butter is the edible natural fat of the cocoa bean, extracted during the process of
making chocolate and cocoa powder. Cocoa butter is not only an increasingly popular
ingredient in the confectionery industry, it is also used in the cosmetic industry thanks to
several of its properties. Cocoa oil is derived from cocoa butter and most often used to soften
and lubricate the skin. Cocoa fat is left over after the cocoa oil is extracted from the cocoa
butter, and also used in the food industry.
Coconut, palm kernel & babassu oil
Coconut oil is the second perennial crop after palm oil and a vital product for the economies of
more than 100 countries. Apart from being a major foreign exchange earner, coconut oil
supplies an important dietary component for human consumption. It has a high content of
saturated fatty acids. Coconut oil is produced from copra and has multiple applications.
Palm kernel oil is a white to yellowish oil of vegetable origin which is solid at normal
temperatures and is obtained from the kernels of the oil palm (Elaeis guineensis). It is one of
the best oils. Palm kernel oil is different from palm oil, which is obtained from the flesh of the
fruit.
Babassu oil (or cusi oil) is extracted from the seeds of the babassu palm (Attalea speciosa),
which grows in the Amazon region of South America. It is used in food, cleaners and skin
products. This oil has properties similar to coconut oil and is used in much the same context. It
is increasingly being used as a substitute for coconut oil.
Page 38 of 44

Groundnut oil
The smallest of the five leading annual oil-seed crops, groundnut oil is an important vegetable
fat source in large producing and consuming countries (i.e. China and India). Refined
groundnut oil is an excellent product for deep-frying and pan-frying and can be re-used many
times over.
Maize oil
Maize oil is a by-product from the wet or dry milling of Zea Mays, the primary product from
this process being starch. Maize germs contain 3040 % oil, which is obtained by pressing and
extraction. Other important products from maize include starch and starch derivatives, meal
and protein. Most of these are used as food ingredients and additives (Fediol, 2008).
Olive oil olive oil is a vegetable oil obtained from the olive (Olea europaea), a traditional tree
crop of the Mediterranean Basin. It is used in cooking, cosmetics, pharmaceuticals, soaps and
as a fuel for traditional oil lamps. Olive oil is a healthful oil, because of its high content of
mono-saturated fat.
Palm oil
Palm oil is the second largest source of vegetable oil in the world. It is the third most widely
traded oil after soybean and rapeseed oil. Palm oil is the largest perennial crop. It is used in
many food items like margarine, ice cream, confectionery, filled milk and as cocoa-butter
substitute. Due to its characteristics, palm oil is often blended with other oils in colder
countries.
Sesame oil
Sesame oil is derived from sesame seeds. It is often used in Southeast Asian cuisine as a
flavour enhancer, e.g. adding it to instant noodles. It is now also increasingly popular among
EU consumers, usually added at the end of cooking as a flavour highlight and not used as a
cooking medium.
Sunflower & safflower oil
Sunflower oil is the fourth largest source of vegetable oil. The increasing output is due to plant
agronomic characteristics and an increasing demand for polyunsaturated oils. The high
digestibility and high vitamin E content make it a popular oil in the health food sectors.
Sunflower oil is mainly used in the following food products: margarine, salad oil and cooking
oil, as it does not affect the natural flavours of foods cooked in it.
Safflower oil has no flavour and colour but has the same nutritional properties as sunflower oil.
It is used as cooking oil and in salad dressings, but also in the production of margarine.
Oil seeds
Oil seeds are mainly processed by crushing or solvent extraction, into vegetable oil. The oil
seeds covered in this survey are:
Copra
Copra is the dried meat, or kernel, of the coconut. This product is imported into the EU for the
manufacturing of coconut oil.
Sesame seeds
Sesame seeds are grown primarily for their oil-rich content. Cooking oil can be extracted from
sesame seeds, and this is their main use, especially in Asia. The product is supplied by
countries in Africa, Latin America and South Asia. In North America and Europe, raw sesame
seeds are generally used for toppings on bread products (i.e. bread, bagels, hamburger buns).
Restaurants and natural food store customers purchase sesame seeds for use in ethnic dishes.
Sesame seeds can also be baked into crackers, often in the form of sticks.
Page 39 of 44

Sunflower seeds
One type of edible sunflower seeds is used directly for confectionery purposes. The kernels are
appreciated for their nutritional value and their flavour. They can be roasted as a snack and
crushed into sunflower seed. They are also used in the manufacture of a large number of food
products, including meals, desserts, cereals, confectionery, ice creams, salad toppings, snacks
and margarine. Part of the production of confectionery sunflower seeds is used as bird feed.
Statistical product classification
Combined nomenclature (CN)
This survey uses trade data based on the Combined Nomenclature. These data are provided by
Eurostat, the statistical body of the EU. The abbreviation CN stands for Combined
Nomenclature. This Combined Nomenclature contains the goods classification prescribed by the
EU for international trade statistics. The CN is an 8-digit classification consisting of a further
specification of the 6-digit Harmonised System (HS). HS was developed by the World Customs
Organisation (WCO). The system covers about 5,000 commodity groups, each identified by a
six-digit code. More than 179 countries and economies use the system.
The vegetable oils and oil seeds covered in this survey are classified under the following HS
codes:
VEGETABLE OILS AND FATS
1508 1090
9090
1509
1511 1090
9011/19/99
1512 1191/99
1990/91/99
1513 1191/99
1911/19/91/99
2130/90
2911/19/50/90/91/99
1515 2190
2990
1515 5019/91/99
1804
OIL SEEDS
1203
1206 0091/99
1207 4090
groundnut oil, crude as well as refined (excl. for industrial uses)

olive oil, crude as well as refined
palm oil, crude as well as refined (excl. for industrial uses)
sunflower or safflower oil, crude as well as refined (excl. for industrial
uses)
coconut, palm kernel and babassu oils, crude as well as refined (excl. for
industrial uses)
maize oil, crude as well as refined (excl. for industrial uses)

sesame oil, crude as well as refined (excl. for industrial uses)
cocoa butter, fat and oil
copra
sunflower seeds (excl. for sowing)
sesame seeds (excl. for sowing)
Trade data of the vegetable oils and fats mentioned above concerns mainly vegetable oils and
fats used for the production of foodstuffs. Other applications are taken out as much as
possible. Only for olive oil and cocoa butter, fat and oil this was not possible. The trade data of
these products include all applications. The trade data on oil seeds only exclude seeds for
sowing. Other applications are included.
The production data are provided by FAOSTAT, but are not available for all of the above
mentioned products. No production data are available for cocoa butter and copra. Furthermore,
these data also include vegetable oils for other industrial uses, besides food manufacturing.
Statistical data: limitations
Trade figures quoted in CBI market surveys must be interpreted and used with extreme
caution.
In the case of intra-EU trade, statistical surveying is only compulsory for exporting and
importing firms whose trade exceeds a certain annual value. The threshold varies considerably
Page 40 of 44

from country to country, but it is typically about 100,000. As a consequence, although

figures for trade between the EU and the rest of the world are accurately represented, trade
within the EU is generally underestimated.
Furthermore, the information used in CBI market surveys is obtained from a variety of
sources. Therefore, extreme care must be taken in the qualitative use and interpretation of
quantitative data, which puts limitations on in-depth interpretation of relations between
consumption, production and trade figures within one country and between different countries.
Because the FAOSTAT data also include all other industrial applications and the Eurostat data
do not, there are limitations to in-depth interpretation and of the possible relations between
industrial demand and production figures on the one hand and import and export figures on
the other.
Page 41 of 44

Appendix B
Introduction to the EU market
The European Union (EU) is the current name for the former European Community. Since
January 1995 the EU has consisted of 15 member states. Ten new countries joined the EU in
May 2004. In January 2007 two more countries Bulgaria and Romania - joined the EU.
Negotiations are in progress with a number of other candidate member states. In this survey,
the EU is referred to as the EU27, unless otherwise stated.
Cultural awareness is a critical skill in securing success as an exporter. The enlargement of the
EU has increased the size of the EU, and also significantly increased its complexity. With more
people from culturally diverse backgrounds, effective communication is necessary. Be aware of
differences in respect of meeting and greeting people (use of names, body language etc.) and
of building relationships. There are also differences in dealings with hierarchy, presentations,
negotiating, decision making and handling conflicts. More information on cultural differences
can be found in chapter 3 of CBIs export manual Exporting to the EU (2006).
General information on the EU can also be found at the official EU website
http://europa.eu/abc/governments/index_en.htm or the free encyclopaedia Wikipedia
http://en.wikipedia.org/wiki/Portal:Europe.
Monetary unit: Euro
On 1 January 1999, the Euro became the legal currency within eleven EU member states:
Austria, Belgium, Finland, France, Germany, Italy, Ireland, Luxembourg, The Netherlands,
Spain, and Portugal. Greece became the 12th member state to adopt the Euro on January 1,
2001. Slovenia adopted the Euro in 2007. Cyprus and Malta joined the euro-zone in January
2008. Since 2002 Euro coins and banknotes replaced national currency in these countries.
In CBI market surveys, the Euro () is the basic currency unit used to indicate value. For
exchange rates of EU currencies in , please visit http://www.oanda.com/
Page 42 of 44

Appendix C
List of developing countries
OECD DAC list - January 2006

When referring to DCs in the CBI market surveys, reference is made to the group of countries
on this OECD DAC list of January 2006.
Afghanistan
Albania
Algeria
Angola
Anguilla
Antigua and Barbuda
Argentina
Armenia
Azerbaijan
Bangladesh
Barbados
Belarus
Belize
Benin
Bhutan
Bolivia
Bosnia & Herzegovina
Botswana
Brazil
Burkina Faso
Burundi
Cambodia
Cameroon
Cape Verde
Central African Rep.
Chad
Chile
China
Colombia
Comoros
Congo Democratic Rep.
Congo Rep.
Cook Islands
Costa Rica
Cote dIvoire
Croatia
Cuba
Djibouti
Dominica
Dominican Republic
Ecuador
Egypt
El Salvador
Equatorial Guinea
Eritrea
Ethiopia
Fiji
Gabon
Nepal
Gambia
Nicaragua
Georgia
Niger
Ghana
Nigeria
Grenada
Niue
Guatemala
Oman
Guinea
Pakistan
Guinea-Bissau
Palau
Guyana
Palestinian Admin. Areas
Haiti
Panama
Honduras
Papua New Guinea
India
Paraguay
Indonesia
Peru
Iran
Philippines
Iraq
Rwanda
Jamaica
Samoa
Jordan
Sao Tome & Principe
Kazakhstan
Saudi Arabia
Kenya
Senegal
Kiribati
Serbia
Korea Rep. of
Seychelles
Kyrgyz Rep.
Sierra Leone
Laos
Solomon Islands
Lebanon
Somalia
Liberia
South Africa
Libya
Sri Lanka
Macedonia
St. Helena
Madagascar
St. Kitts Nevis
Malawi
St. Lucia
Malaysia
St. Vincent & Grenadines
Maldives
Sudan
Mali
Suriname
Marshall Islands
Swaziland
Mauritania
Syria
Mauritius
Tajikistan
Mayotte
Tanzania
Mexico
Thailand
Micronesia, Fed. States Timor-Leste
Moldova
Togo
Mongolia
Trinidad & Tobago
Montenegro
Tunisia
Montserrat
Turkey
Morocco
Turkmenistan
Mozambique
Turks & Caicos Islands
Myanmar
Tuvalu
Namibia
Uganda
Nauru
Ukraine
Uruguay
Uzbekistan
Vanuatu
Venezuela
Vietnam
Wallis & Futuna
Yemen
Zambia
Zimbabwe
Page 43 of 44

CBI countries January 2008:

CBI supports exporters in the following Asian, African, Latin American and European (Balkan)
countries:
Afghanistan
Albania
Armenia
Bangladesh
Benin
Bolivia
Bosnia-Herzegovina
Burkina Faso
Colombia
Ecuador
Egypt
El Salvador
Ethiopia
Georgia
Ghana
Guatemala
Honduras
India
Indonesia
Jordan
Kenya
Macedonia
Madagascar
Mali
Moldova
Montenegro
Morocco
Mozambique
Nepal
Nicaragua
Pakistan
Peru
Philippines
Rwanda
Senegal
Serbia
South Africa
Sri Lanka
Suriname
Tanzania
Thailand
Tunisia
Uganda
Vietnam
Zambia
Page 44 of 44

Edible Oils

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CBI MARKET SURVEY: THE VEGETABLE OILS AND FATS

(INCLUDING OIL SEEDS) MARKET IN THE EU

CBI MARKET SURVEY

THE VEGETABLE OILS AND FATS

REPORT SUMMARY ................................................................................................... 2

This survey was compiled for CBI by ProFound Advisers In Development

CBI MARKET SURVEY: THE VEGETABLE OILS AND FATS

CBI MARKET SURVEY: THE VEGETABLE OILS AND FATS

CBI MARKET SURVEY: THE VEGETABLE OILS AND FATS

CBI MARKET SURVEY: THE VEGETABLE OILS AND FATS

Vegetable oils and fats

CBI MARKET SURVEY: THE VEGETABLE OILS AND FATS

EU apparent industrial demand of the selected vegetable oils and fats,

CBI MARKET SURVEY: THE VEGETABLE OILS AND FATS

EU apparent industrial demand for selected oil seeds, 2003-2007, in

CBI MARKET SURVEY: THE VEGETABLE OILS AND FATS

CBI MARKET SURVEY: THE VEGETABLE OILS AND FATS

Vegetable oils and fats

Salad and cooking oils (e.g. sunflower and groundnut oil);

Deep-frying oils and fats (different kinds/combinations of oil, depending on application);

Margarine and spreads;

Bakery fats (shortenings);

Cocoa butter alternative fats;

Ice cream fats;

Vegetable dairy fats;

Infant nutrition fats;

Other food applications (soups, sauces, canned fish, etc.).

Industrial use and application of vegetable oils

Application food industry

Majority used in the

Salad oil, cooking, dietetic food,

Used for 70% in the

Mediterranean countries like

Used for 75% in the

Confectionery, bakery, imitation

Germany, The Netherlands,

Used for 80% in food

Margarine, salad oil, cooking,

Spain, Italy, France,

Cooking, margarine, shortenings

Germany, The Netherlands

Mainly used in the food

Cooking, salad oil, confectionery

Germany, The Netherlands

Mainly used in the food

The Netherlands, Germany,

Source: ProFounds references and calculations from USDA FAS data

CBI MARKET SURVEY: THE VEGETABLE OILS AND FATS

CBI MARKET SURVEY: THE VEGETABLE OILS AND FATS

CBI MARKET SURVEY: THE VEGETABLE OILS AND FATS

Opportunities and threats

CBI MARKET SURVEY: THE VEGETABLE OILS AND FATS

Vegetable oils and fats

EU production of the selected vegetable oils and fats, 2003-2007,

CBI MARKET SURVEY: THE VEGETABLE OILS AND FATS

CBI MARKET SURVEY: THE VEGETABLE OILS AND FATS

EU production of oil seeds 2003-2007, in 1,000 tonnes

Source: FAOSTAT (2009)

CBI MARKET SURVEY: THE VEGETABLE OILS AND FATS

Opportunities and threats

CBI MARKET SURVEY: THE VEGETABLE OILS AND FATS

CBI MARKET SURVEY: THE VEGETABLE OILS AND FATS

Trade channels for market entry

European distribution channels for vegetable oils and oilseeds