Specialty fats products

The characteristics of specialty fats products are very different from the fat in general such as margarine, shortening, pastry fat, filling / cream fat, and the othes. In general, its application are divided into three groups: (i) the molded products such as chocolate bars and pralines, (ii) coated / enrobed products, ie, chocolate coatings / non-chocolate wafers, biscuits, nuts, fruits and other and (iii) filling or center in the confectionery product.
This characteristic is related to the crystal structure, in which brown fat has a structure of β (beta) with the crystal density arrangement and melting point is high, the speed of crystal growth is relatively slow, but has a very stable crystalline construction. On the other hand, other types generally have a form of β'(beta-prime) that has the opposite properties. The distinction of its structure is very difficult to distinguish from its melting point, and the parameters that can describe the typical characteristics of brown fat is solid fat content (SFC). SFC profile of specialty fats should be sharp and steep, where at temperatures less than 25 degree C they should have SFC more than 68% to ensure the hard and brittle texture, as well as at temperature of 35 degree C should have SFC less than 5% to ensure no waxy taste in the mouth when chocolate consumed.
They are sometimes called by confectionery fat, hard butter, or cocoa butter alternatives (CBA). In general, specialty fats are divided into 3 groups, namely: Cocoa Butter Equivalent (CBE), CB Replacer (CBR), CB Substitute (CBS).

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Bad fat in fast food

Even Greyson Chance rumored to be visiting Jakarta, Indonesia, likes fast food (FF). But did you ever think that fast food contains bad fat ? Dr. Ratna Djuwita from the Faculty of Public Health University of Indonesia said that in modern times, people still eat bad fat from unhealthy option like FF. She obtained this opinion from the results of her study on nutrients of four Indonesia ethnic: Minang Kabau, Sundanese, Javanese and Bugis. She added that their intake is sufficient in quantity, but the quality is not good.
That opinion was indirectly supported by researcher from Harvard University, Dr. Dariush Mozaffarian. But he also said that some of the leading restaurants managed to reduce the bad fat in fast food production in the United States, in order to reduce the risk of being overweight or obese to the consumer. He added that some of the restaurants succeeded in reducing the trans fat (TF) content and saturated fat (SF) content in their product to the safe limit established by the U.S. Food and Drug Administration or FDA to zero grams (TF) while the SF content up to 2 to 8 grams. However, there are still many restaurants not meet health requirements from the rules set by MOH of Uncle Sam. Although no direct chemical testing, Research Center for the Public Interest CSPI says the research is based on the nutrition label are listed in 85 major industrial products are submitted to the FDA.
There are several reasons why you should reduce the consumption of fast food.
1. It contains ingredients that give the delicious sensation (such as bad fat and sugar) so that you hooked and stimulate you to continue to eat as often as possible. This sometimes makes you eat them regularly every day. Avoid this by changing your eat habits with healthier stuff, like fruits and vegetables fresh.
2. If you like eating them and rarely exercise, then in a few weeks your body will experience weight gain which is not healthy. The bad fat in fast food are then stored and accumulate in your body.
3. Salt can make your menu much more enjoyable. Almost all FF contain high salt. Salt contains sodium. When the level of sodium in the blood is high and cannot be removed by the kidneys, blood volume increases because sodium tends to attract and retain water. This increase causes your heart to work harder to drain the blood throughout the body that causes high blood pressure.
Dr. Ratna suggest that from the consumption of total fat, SF should be no more than 10 percent, and 20 percent unsaturated consisting of 60-10 percent PUFA and 10 percent MUFA.

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Indonesia Palm Oil Industry Barriers

Secretary General of the Indonesian Palm Oil Association (Gapki), Joko Supriyono, explains that there are six barriers to palm oil industry in Indonesia that lead to expanding difficulties or competitiveness declining if they are not removed.
a. Unclear policies for the land that will be used for development of new plantation as the result of imperfections of national spatial issues and the Provincial Spatial Plan (RTRWP). In addition, there are legal uncertainty of the legal status of the land. These conditions make concessionaires and investors choose to wait and see which of course will affect the rate of plantations expansion.
b. The second barrier: a moratorium policy on primary forests and peatlands can actually complicate the resolution of land issues that have previously been faced with the RTRWP problem.
The president instruction concerning the moratorium is considered to collide with other regulations such as the Law Number 41 (1999) regarding Forestry. On this basis, the policy of a moratorium be counterproductive to the development of palm oil industry.
Although the government provides the degraded land area of 35.2 million ha but its status still in doubt because this areas includes forest areas.
c. The third of Indonesia palm oil industry barriers, high CPO export tax which is progressive is proven not effective to suppress the volume of exports of CPO and have not been able to encourage the development of downstream industry in this country.
Instead, the tax is believed to be unfair to producers of raw materials either state or private estates and smallholders because they do not enjoy increased margins that should be obtained from the high price of CPO in the world today. So it is not appropriate if the tax is planned as the main instrument as the downstream industry actually need more appropriate incentives and attractive.
d. Fourth barrier, the development of palm plantations that led to Eastern Indonesia is less supported by adequate infrastructure such as ports. Supposedly there is an export port in Kalimantan to facilitate CPO sales abroad. In consideration, the total production of crude palm oil (CPO) from Kalimantan and Sulawesi has reached 30 percent of national production. It is also expected soon realized the development of industrial clusters to encourage the growth of the downstream industry.
e. Fifth barrier, the CPO business was harmed by the application of tax rules regarding VAT on primary products of fresh palm bunch (TBS/ Tandan Buah Segar). Because the VAT of TBS is waived so that TBS for input tax on production factors goods couldn’t be credited and become an additional burden. As a result, it leads to double taxation to the integrated companies (production-processing).
f. Sixth, the government should make climate change mitigation program with its own forces without involving foreign aid to overcome Indonesia palm oil industry barrier. The involvement of foreign funds will only make this country more dependent on other countries, while foreign aid is not necessarily give a direct impact on employment and poverty reduction.

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Palm oil prospect

Palm oil prospect can be evaluated from its strength and opportunity. The expansion of its agribusiness is one of the steps required as plantation sub-sector development activities in order to revitalize the agricultural sector. The growth of various subsystems that is very rapidly in this agribusiness since the late 1970s is the evidence for the rapid movement of this industry. World's palm oil demand has increased in the last two decades, first for use in food, consumer products, and more recently as the biofuel raw materials. Malaysia and Indonesia account for approximately 87 percent of world production.

This commodity with its various uses for both food and non food industries, show the development which is not only associated with the growth of vegetable oil in Indonesia and the world, but also related to the growth of other sources, such as soy, rape seed and sunflower. In terms of competitiveness, palm oil (PO) has a good competitiveness compared to others, because: (1) its productivity per hectare is quite high, (2) it is an annual plant which well adapt to various agro-climate change, and being reviewed from its nutritional aspects, it has not been proven to cause increased cholesterol levels, and even contain beta carotene as a source of pro-vitamin A.
CPO (Crude Palm Oil) is a major commodity of plantation sector in Indonesia which is the second largest producer after Malaysia. Various advances have been gained in development of its plantations and a variety of benefits has to be realized as a result of this agribusiness actors efforts. Support from various parties such as banking, research and other economic infrastructure support by the various agencies involved in this sector is very important role. Its tree which is an annual plant may play a role in the absorption greenhouse gases or other environmental services such as biodiversity conservation or eco-tourism.
Palm oil prospect in Indonesia gave a very positive impact in national establishment, since PO is one source of foreign exchange from non-oil sector which is quite important. World vegetable oil consumption always exceeds its production so that the tendency of the world vegetable oil prices will always go up. From World Oil: production and consumption of edible oils during the period 2008-2012 is estimated to 132 million tonnes, while production is only 108 million tons so it needs a new supply of 24 million tons.
Palm oil has better prospects than others in the future due to several factors, among others:
1. Palm oil productivity is quite high compared to others.
2. For annual crops, PO is easier to adapt to its environment compared to others such as soybeans and sunflowers.
3. Judging from the healthcare, PO has the advantages when compared with others because they contain beta-carotene as pro-vitamin A and vitamin E
4. PO can also be used as raw materials for oleochemical industry which has the advantages compared to products made from petroleum. Palm oil is a source of raw materials that can be renewed (renewable), while petroleum is expected to be depleted within the next few years.
5. Oleochemical products are made from PO is safer, because its edible nature of and it is friendly to the environment and is easily broken down.
The increasing demand for vegetable oils is in line with population growth and economic growth. Therefore, plants with higher productivity of oil will meet the expectations of market demand in the future. PO productivity is up to 4 tons / ha / year exceeds the productivity of soybeans which is only 0.4 tons / ha / year and 0.57 tons of rapeseed oil / ha / year. In addition, Konferensi Minyak Sawit Indonesia VII (7th Indonesian Palm Oil Conference) held in Bali by GAPKI can provide a clearer picture about palm oil prospect.

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Palm Oil Industry Development Strategy

Palm oil industry development strategy in Indonesia need to be formulated carefully, considering that it is a country with the largest world supplier of CPO. Their production in 2009 reached 18.6 million tons. Business prospects this commodity in this country would be good if all aspects were well managed by the government and must be fully supported by the palm oil (PO) industry. There are seven obstacles to the development of Indonesia's PO industry. Of the seven barriers can be concluded into four main things that should be considered by all parties.
Infrastructure development strategy
One of them is the absence of an international port as a main distribution point for palm oil from Indonesia. Then the suggestion offered is to start building an international port in the strategic areas of PO business (clusters) such as in Kalimantan (Borneo), Riau, and We Island at the northern part of Sumatra. The ports can be placed in the Straits of Malacca to be related to the European market, while to seize the Asia market, it can be built in the Natuna Sea or Borneo.
Environment Strategy
The existence of a moratorium on natural and peat lands are directly delivered by the president as a result of an agreement on inter-country meeting in Oslo, was worrying because it is probably narrow the possible field for the plantation. But after further review, the moratorium is for the common good. Business actors also recognize the support of a moratorium, but the government is expected to be fair in all the sectors of interest, and wise.
Development strategy of palm oil downstream industry
There is a desire of the investor to hasten the formation of a specialized agency that houses the business. High commitment is needed from government embodied in the form of, among others, a clear blueprint on the development of PO industry, policies that helps the development of the industry from upstream to downstream, and development activities are coordinated and integrated among relevant agencies, as well as the creation of more conducive investment climate to create more interest in the PO industry. Promotion institution is required specifically to promote the Indonesian palm oil products to the export destination countries to improve market access for that products in the international market.
Regulatory Improvement Strategy
These include the taxation system. Ideally the government establishes a warm climate to make a breakthrough policy. The fact, the government set higher taxes for the PO business, so the investors preferred to directly build a cooking oil factory in export destination countries. It is suggested that this tax can be minimized and better optimized if the tax paid to be returned again on the path of palm oil business, among others, to build the infrastructure, and returned in the form of incentive for farmers, so it will push the productivity up.
In addition to the four things that should be observed above, there is one additional strategy which is said by the Indonesia minister of agriculture, Mr.Suswono, that the key to overcoming the problem of low productivity per hectare, is research. Research needs to be held and allocated sufficient funds to do research because it is proven in the country of Malaysia which have less land for plantation, but their palm fruit can be produced twice as much as Indonesia in one hectare. Malaysia which is one of world's PO producer, has the Malaysian Palm Oil Board, which is a fusion of the two institutions: research and licensing institutions.
In addition, the 7th Indonesian Palm Oil Conference held by GAPKI expected to provide deal solutions for various issues and development strategies for palm oil industry.

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Threats to palm oil business

Threats to palm oil business came through the anti-palm oil campaign that continues to this day. Even the pressure given to that industry may be growing stronger in the future. The campaign theme is still associated with the issue of climate change and environmental degradation. The series of such campaigns will be more systematic, which not only carried out by NGOs alone but by certain consumer groups and some countries in the European Union, through the threat of new standards enforcement in the palm oil trade and apply the rules in the form of non-tariff barrier.
According to the results of the ICBS (2000) that the American Soybean Association (ASA) conducted a policy of unfair trade (not fair) with a campaign that the CCO (crude coconut oil) and CPO contain saturated fatty acids and high cholesterol which are not good for health. This course will build a negative brand image as well as threats to business, especially palm oil from Indonesia. It because soybean oil produced by American countries is more expensive than PO and is unable to compete with PO. Soybean oil export share even have started to be taken over by the CPO. Its production costs only U.S. $ 180/ton, while soybean oil U.S. $ 315/ton and rapeseed oil U.S. $ 750/ton. Seeing this condition, ASA led by the USA started campaign negative issues against the CPO in the hope customers will come back to consume soybean oil.
Therefore, to counteract these issues, the Indonesian government is seemed to approach through trade lobbying. Fight against such threats through scientific way such as research to find objective data in supporting the CPO trade and then the results are published on an international scale.
By considering the increase in world vegetable oil demand and the expansion of all the world vegetable oil production, palm oil business should not stop the expansion if they do not want to lose market opportunities and lose momentum of building a national economy.
Therefore, the government should create a good climate to making a breakthrough policy as an effort to overcome the threats facing the business of palm oil.

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Indonesia palm oil prospect

In order to study Indonesia palm oil prospect, it is needs to estimate the market opportunities (increased consumption) in the world market. Based on the previous estimation, the consumption level until 2025 is expected to range between 41.45 - 44.45 million tons. On the other hand, world CPO production in 2004 was 25.67 million tons. Thus, the chance to increase production until 2025 is ranged from 15.78 - 18.78 million tons.
With a fairly open market opportunity both in terms of world exports or consumption, CPO producing countries will try to exploit these market prospect. Malaysia and Indonesia is to lead this competition. As expected, Malaysia as the main producer is expected to take these opportunities with increased production at a rate of 2.8% -1.5% per year. Indonesia is predicted to increase production at a rate between 3.0% -7.6% per year.
There are several arguments told that with the support of consistent and effective policy, associated with the Indonesia palm oil prospect, this country is expected to capitalize on most of these market opportunities. The main factor is the availability of land that is still quite large. The availability of land suitable for palm plantation in Indonesia reaches about 2.9 million ha. On the other hand, Malaysia faced difficulties because of the very limited land for expansion. Other countries such as Thailand, etc. are also not predicted as the real competitor because of their limited land, and its policy which not putting palm oil as a commodity. Nigeria palm oil output is estimated to be only sufficient to meet their domestic needs.
With this argument, Malaysia is predicted to take the opportunities by 20% (3.16 - 3.76 million tons) and approximately 40% (6.31 to 7.51 million) will be utilized by other states. Indonesia is estimated to take the greatest prospect to utilize about 40% or about 6.31 to 7.51 million. This means that with the assumption that productivity is about 3.5 tons of CPO / ha, they have a chance to expand between 1.80 - 2.15 million ha. If the expansion carried out between the years 2005-2025, then every year they should expand about 120 -140 thousand hectares to support their palm oil prospect.

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