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Conference oils
relationship banking
edible oils conference
6 What'sNewS Issue 9 September 1998
Candid discussions
Unanimous need
This year's dedicated F&A conference focused on edible oils, one of today's most
exciting sectors as it has everything - huge growth potential, rapidly changing
structures, urgent strategie choices and hot consumer issues. Close to 200
participants from the industry all over the world gathered in Rio de Janeiro in
Hl H m J
response to RI's invitation to meet and discuss topics relevant now and in the future
countries (with the exception
of Nigeria, although Senegal
was represented) were there to
discuss, debate and it appears
also to do business. Said
Diego Barbero of Argentina's
Pecom Agra, 'most
conferences focus on one link
in the chain, so there are few
opportunities to meet with
people from the whole
business and discuss industry-
related issues with them.
Because this is a truly
international meeting, it is
also easier to have candid
discussions on those issues.'
In his introduction to the
conference, chairman James
Fry of LMC International, said
that 'to an economist, the
oilseeds sector is more
Chairman James Fry making a stand
fascinating than any of the
other major agricultural
industries.' The reason, he
argued, was that
understanding the world
oilseeds economy requires an
appreciation of the interaction
of several quite distinct
economie forces. One is the
fact that oilseeds are produced
both as annuals - such as
soybeans, rapeseed or
sunflower - and as perennial
tree crops, notably oil palm
and coconut. Oilseeds are also
different from most other
crops in that producers in
tropical, sub-tropical and
temperate regions all compete
directly with one another. So,
he said, an economist has to
make sense of production
conditions and agricultural
economies, ranging from the
US to Argentina, Nigeria and
Indonesia.
In fact, gaining understanding
of these differences was more
than within the grasp of
participants. Oilseed
professionals from major
corporates in all these
The issues were undisputed.
The study produced by our
FAR people defines five
drivers, all recognized by the
conference as key issues -
rapid developments in
biotechnology, changes in
consumer demands and in the
supply of raw materials. The
fourth is shifts in trade flows,
and the fifth is changing
competition within the
industry itself. If these five
drivers are clustered, then the
main issue to emerge in the d
global edible oils sector today
is: how can players process
higher volumes of bulk raw
material while simultaneously
adapting production to meet
growing demand for specialty
products? Henk Gentis opened
the conference for RI by
outlining the salient points
relating to these drivers.
Obviously, biotech
applications, such as
genetically modified organisms
(GMOs), was an issue of
interest to everyone.
Unfortunately, the debate was
somewhat limited by the fact
that at the last moment Carlos
Joly of Monsanto was unable
to attend. However, the
discussion was almost
unanimous in its recognition
of the need for biotech and the
benefits it can bring.
