Vegetable oil exports generated US$50 million last year and will likely bring in US$55 million this year, said Vietnam Vegetable Oils Industry Corporation (Vocarimex).

Vocarimex subsidiaries like Tuong An Vegetable Oil Company and Cai Lan Oils and Fats Industries Co. Ltd. greatly contributed to the export growth. The main export markets were Japan, Cambodia, China, Malaysia, Afghanistan, South Korea and Australia.

Last year witnessed a fierce competition between imported vegetable oil products and locally-produced ones as the import tariff on crude and refined oil was lowered to zero, according to a report of Vocarimex.

Moreover, pig fat prices significantly dropped, so low-income people once again used fat instead of oil, affecting sales of vegetable oil producers. As of end-2012, the total unsold volume of Vocarimex subsidiaries had reached over 8,300 tons.

Vocarimex last year imported some US$530 million worth of materials from Indonesia, Thailand, the U.S., Brazil and India. The import volume of oil materials fell 20% and that of sesame seeds declined 53% as the company increased buying domestic materials.

Vocarimex last year developed its sesame material zone with an additional 220 hectares in the districts Duc Hue, Duc Hoa, Vinh Hung and Tan Hung of Long An Province with a productivity of one ton per hectare.

This year, the company aims at an output of 700,000 tons, up 6% against 2012, with about 665,000 tons for consumption at home and the remainder for export.

On December 26, 2012, the Vietnam Competition Authority under the Ministry of Industry and Trade decided to use a trade defense instrument against imported vegetable oil in response to the petition of Vocarimex.

Vocarimex, Tuong An, Cai Lan and Golden Hope Nha Be represent some 97% of the nation’s total vegetable oil output.

The Saigon Times Daily