Demand & Supply of Lauric Oil
MICROECONOMICS ASSIGNMENT Demand & Supply of Lauric Oil
TABLE OF CONTENTS 1. Introduction 1.1 What is lauric oil? And what are its applications? Page 3
2.
Factors affecting demand 2.1 2.2 2.3 2.4 Population and food demand Crude oil and biodiesel Prices of palm and other vegetable oil Important events of Year 2011 Page 4 Page 5 Page 6 Page 7
3.
Factors affecting supply 3.1 3.2 3.3 Climate Incremental supply forecast for 2011 – 2012 New policy highlights Page 8 Page 8 Page 10
4.
Analysis 4.1 4.2 Past record for Lauric oil prices Demand and supply analysis Page 10 Page 12
5.
Conclusion
Page 14
6.
References
Page 14
Page 2
1.
INTRODUCTION 1.1 What is lauric oil? And what are its applications?
Lauric oil is the common name of coconut oil and palm kernel oil, both are derived from species of palms and are distinguished from other fats by their high content of lauric acid (44 to 52 percent) (Codex Stan, 2009). Because of the low molecular weight of their acids, these fats feature a very low degree of unsaturation and a relatively low melting point. These oils are highly resistant to oxidation. Coconut oil is obtained from coconut copra, which is dried coconut meat (Fife Bruce, 2005). Palm kernel oil is obtained from the kernel of the fruit. Both products are available in different grades (Peter KV Kurain, 2007). Crude Coconut Oil known as CNO is used in the manufacture of amines and industrial soaps. It typically has higher free fatty acid content than ordinary vegetable oils. Edible Coconut Oil has been refined, bleached and deodorized (RBD). It is an important feedstock for oleochemicals and a component for resins. Surfactants produced from coconut oil are used in soaps, detergents, shampoos and emulsifiers. In the edible field, it can be found in ice cream, ice cream coatings, popping oil and as spray oil. Hydrogenated Coconut Oil is used as a shortening, in coffee whitener, whipped dessert toppings and in
TABLE OF CONTENTS 1. Introduction 1.1 What is lauric oil? And what are its applications? Page 3
2.
Factors affecting demand 2.1 2.2 2.3 2.4 Population and food demand Crude oil and biodiesel Prices of palm and other vegetable oil Important events of Year 2011 Page 4 Page 5 Page 6 Page 7
3.
Factors affecting supply 3.1 3.2 3.3 Climate Incremental supply forecast for 2011 – 2012 New policy highlights Page 8 Page 8 Page 10
4.
Analysis 4.1 4.2 Past record for Lauric oil prices Demand and supply analysis Page 10 Page 12
5.
Conclusion
Page 14
6.
References
Page 14
Page 2
1.
INTRODUCTION 1.1 What is lauric oil? And what are its applications?
Lauric oil is the common name of coconut oil and palm kernel oil, both are derived from species of palms and are distinguished from other fats by their high content of lauric acid (44 to 52 percent) (Codex Stan, 2009). Because of the low molecular weight of their acids, these fats feature a very low degree of unsaturation and a relatively low melting point. These oils are highly resistant to oxidation. Coconut oil is obtained from coconut copra, which is dried coconut meat (Fife Bruce, 2005). Palm kernel oil is obtained from the kernel of the fruit. Both products are available in different grades (Peter KV Kurain, 2007). Crude Coconut Oil known as CNO is used in the manufacture of amines and industrial soaps. It typically has higher free fatty acid content than ordinary vegetable oils. Edible Coconut Oil has been refined, bleached and deodorized (RBD). It is an important feedstock for oleochemicals and a component for resins. Surfactants produced from coconut oil are used in soaps, detergents, shampoos and emulsifiers. In the edible field, it can be found in ice cream, ice cream coatings, popping oil and as spray oil. Hydrogenated Coconut Oil is used as a shortening, in coffee whitener, whipped dessert toppings and in
References: Page 6 Figure 2.4 PKO & CPO prices V.S Crude oil price (Source: Palm Oil Conference, http://www.lmc.co.uk/Report.aspx?id=4&repID=4349&flag=67073) 2.4 Important events of year 2011