Savola upbeat on market outlook

Extending its efforts to be a solution provider for all its customers, especially the business-to-business (B2B) segment, Savola Foods Company organized a two-day seminar in Jeddah, hosted by Mohammed Al-Klaiby, CEO of Savola Arabia, and Mazen Badawood, VP Savola Arabia.
The seminar was conducted by James Fry of consultation company LMC International UK, US, Malaysia and Singapore, who presented the market outlook for 2013 for both sugar and vegetable Oils.
Guests from over 50 companies interacted positively with the speaker whose presentation included market intelligence, analysis and future trends.
Following the event, Al-Klaiby said: “The Savola Group firmly believes that sharing knowledge and information with partners and stakeholders is an integral part of our corporate responsibility as one of Saudi Arabia’s leading organizations and makes a significant contribution to the advancement of the Kingdom’s economic growth and development.”
Fry said world sugar prices have risen dramatically since 2005, pointing out that in the supply/demand balance three years of deficit severely depleted global stocks. “However, we are moving back to a surplus again.”
Looking at the market outlook, he stated that sugar consumption is expected grow by 30-35 million tons in 2010-2020, mainly in Asia.
Moving on to vegetable oils, Fry pointed noted that current oil prices are very high by historical standards.
He added that, applying income growth and the increase in population, the demand growth for oils for food would depend heavily on China and India.
Taking global markets as a whole and combining all the segment forecasts for world vegetable oil demand, he estimated that the growth rate would be 3.3 percent from 2011 to 2025.