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Solid Setting PDF Print E-mail

Solid Setting - Palm oil use in South Africa

 

South Africa has traditionally derived cooking oil from sunflower seed.There has, however, been a recent shift to soybean oil in the cooking oil segment and to palm oil in the bulk-frying market.

 

Last year, the country imported some 420,000 tonnes of palmoil, of which 170,000 tonnes were supplied by Malaysia.

 

Hudson & Knight, part of the Malaysian conglomerate Sime Darby Bhd, is the only ISO 22000-certified oils and fats refinery in the country. It has produced trans-free fats and margarines for the industrial baking sector for more than 14 years, by incorporating palm oil into formulations. These are based on refined palm oil fractions and interesterification, to provide the desired levels of hardness.

 

South Africa’s current top buyer of palm oil is Willowton Oil & Cake Mills, which manufactures margarine and baking fats using non-hydrogenated vegetable oils. Wilmar Trading, locally represented by Carst & Walker, offers a range of trans-free shortenings and specialty fats.

 

Epic Foods serves the bakery and confectionery industries. Its Qualibake brand is formulated using Malaysian palm oil. Products are regularly analysed by independent laboratories to ensure that they continue to meet industry standards.

 

Solid fats consumption

Among South Africa’s edible oil products, the output of solid fats accounts for an estimated 250,000 tonnes a year. This supports about 80% of domestic requirements, with the balance being met

through imports.

 

 

Solid fats are used in the household and industrial sectors, at a ratio of 60:40. Industrial users comprise bakeries (including pastry makers), restaurants (including fast-food outlets), food caterers and manufacturers of ice cream, confectionery and snacks.

 

 

Bakeries use shortening for bread, biscuits, cakes and pastries. While the industry is fragmented with some 6,000 small bakeries in operation, there are five major producers – Pioneer Foods, Golden Wheat Biscuits, Chipkins Bakery Suppliers, National Brands (Bakers) and Genfood Bakeries.

 

The confectionery and snacks range from candies, sweets and chocolates to popcorn, pretzels, roasted nuts, chips, cookies, crackers and meat snacks. Manufacturers use specialty fats such as CBS and CBE as coating fats.

 

Nestle SA has a strong brand presence, accounting for 50% of the solid fats used by this sector. Aarhus supplies the bulk of the Nestle SA’s fats requirements. Other major users are Beacon Sweets &

Chocolates, Canon Foods, Moonlight Sweets and Sugarbird Sweets Pty Ltd.

 

In the fast-food business, Super Crisp (produced by Felda Bridge) and Crispa Gold (produced by Husdon & Knights) are popular for frying.The two companies jointly supply about 70% of the frying requirements, selling the fats in 20-litre buckets.

 

Steady demand growth is anticipated in the sweet and savoury snacks sector, as the flavour and packing of foods have improved. Disposable income among the lower- to middle-income groups is also rising, making it more affordable for them to buy snacks.

 

Increasing consumption of bakery and confectionery products is also attributed to the establishment of such stores by supermarket chains that produce tastier and better quality products.

 

Palm oil therefore remains well positioned to capture a larger share of the market for solid fats, by eplacing soft oils as a raw material

 
Felda Foods PDF Print E-mail

A Continuing Success

Story

FELDA Bridge Africa was started in 1996 and is a 50:50 joint venture between Felda Holdings Malaysia and the Bridge Group of South Africa. Felda Bridge Africa is one of the largest bulk distributors of palm oil products in Southern Africa.

The Bridge Group is a BEE-compliant, privately owned South African company that has been in operation for over 25 years. It has a staff complement of more than 150 employees and its 2007 turnover exceeded two billion rand. The head office, refinery and factory are situated in Johannesburg, with major branches in Cape Town and Durban and logistics offices throughout Southern Africa.

Felda Foods markets the “Supa” brand of palm oil products and has achieved phenomenal growth in the food manufacturing and preparation industries over the past 10 years. In fact the SupaCrisp brand is the fastest growing frying oil brand in the country and unit sales have increased ten-fold in the 10 years since the product was launched in 1998.

 

CURRENT OPERATIONS

Felda Foods services the food manufacturing and preparation industries through the manufacturing, marketing and distribution of palm oil-based fats and oils. While Felda Foods stocks a wide range of “off-the-shelf” frying oils, baking fats and margarines, it has also established itself as the leading supplier in the niche market of customised blends. Felda Foods maintains that it can produce products that will suit the specific fat requirements of almost any food manufacturing process.

 

The company’s activities include:

• The import of palm oil products;

• Manufacture of finished palm oil products, packaging and branding;

• Warehousing, storage and forwarding;

• Bulk and wholesale distribution;

• R&D - customised product development;

• Field support and in-store training;

• Environmentally-friendly used oil recovery

 

The industries that Felda Foods currently services:

Bulk Products:

• Snack food industry

• Frozen chip industry

• Ice-cream industry

• Coffee creamer industry

 

Baking Products:

• All baking manufacturers

• Confectionary manufacturers

 

Frying Products:

• Food service industry distributors

• Fast food and quick service restaurants – branding

• Hotel industry

• Catering industry

• Cash & carry wholesalers

 

Specialty Products:

• Customised blends for all food production requirements

 

 

NEW CORPORATE IMAGE AND BRANDING

In late 2007, Stephen Kromhout was appointed general manager and given the mandate of taking the company to the next level. He promptly assembled a dynamic new management team and recruited the services of an external branding consultancy to assist in the development of a new corporate image that would be more representative of the core business.

 

Thus Felda Foods was born with the aim of delivering the message to our customers, both existing and potential, at the revitalised company is committed to the food manufacturing, food preparation and food services industries in Southern Africa; hence the emphasis on Felda Foods.

 

The incorporation of an oil drop in the new corporate logo is easily recognizable as a symbol of the company’s area of expertise.

 

Expertise and specialisation is the new Felda Foods’ major point of difference, inan industry sector that has been traditionally mundane.

The company has taken a quantum leap in differentiating from the competition in that each customer’s specific requirements are addressed individually, through highly trained support staff, customised R&D

programmes and tailor-made contracts.

 

The re-branding of the highly successful SupaCrisp frying oil and the new “Professional Baking Series” of margarines and shortenings into packaging more representative of the food industry has also been a major development, which by all accounts has been well received by the market. This dynamic range has been specifically developed for frying, baking and confectionery professionals where consistent results, great taste and ease of use are paramount.

 

VISION AND MISSION

Felda Foods is confident of continued growth in the specialised oils and fats sector of the food industry in Southern Africa. A true reflection of the company’s commitment is the multi-million rand expansion and upgrade that is currently undergoing at the Felda Bridge Industries refinery and finishing plant in Johannesburg.

 

This “Win-Win-Win” philosophy is carried through to the end user or consumer, not only through improved end-product quality, but also by way of Felda Foods’ Corporate Responsibility programmes.

 

The main thrust of the company’s Corporate Social Investment programme is its alignment with SAFOI, the South African Fryer Oil Initiative and the universal implementation of the “Stewards Principle”. Felda Foods is committed to the practice of Good Oil Management. Its systematic removal of used oil from the food chain and turning it into biodiesel is coordinated on a national basis.

 

Felda Foods is committed to the practice of Continuous Quality Control and an important aspect of the upgrade agenda will be the achievement of HACCP accreditation before the end of this year. As South Africa’s major importer, manufacturer and distributor of quality palm oil products, Felda Foods is focusing on the food market with a new range of class-leading products.

The company’s ethos of striving to meet all four basic procurement needs in terms of Quality, Value, Health and Service has resulted in the formation of highly effective “Supply Partnerships”.

The application of this philosophy in the day-to-day running of the business has undoubtedly been the catalyst for the phenomenal growth of Felda Bridge Africa over the past 10 years and a good indicator for the future.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
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Raw Materials Wanted PDF Print E-mail
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Growing Demand for palm oil products in South Africa's soap sector

Some
50 per cent of South Africa's 44 million population lives below the poverty line. In general, the poor and the richer South Africans have distinctly different habits of using soap. The better-off people use toilet soap for personal cleansing and laundry soap for washing soiled clothes and other fabrics.


The poorer section of the population uses laundry soap for both purposes. The very rich South Africans use liquid foam toiletries, but soap bars are most widely used, accounting for 97 per cent of the country's soap market.

The oil-based raw materials that is commonly used in the production of laundry soap are PFAD and acid oil. Blends of palm stearin/ PKO and tallow/coconut oil are widely used to manufacture bath soap. As ingredients, coconut oil and PKO are used mainly to soften the soaps. Palm-based oils at present constitute less than 20 per cent of the fatty acid composition in most toilet soaps produced.
 
Growing Concerns Over trans fats PDF Print E-mail
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Opportunities abound for Malaysian palm oil to gain wider foothold in South Africa

With a population of 44 million and a gross domestic product (GDP) of USS587.5 billion in 2006, South Africa is the richest and most economically developed country in the Sub-Saharan region of the continent. The country has a highly developed manufacturing sector and produces many finished products for its own needs and for export. Among the edible oils products produced, the output of solid fats is estimated at 250,000 metric tonnes (MT) a year. This production level is able to support about 80 per cent of the country's requirement, with the remaining 20 per cent being imported.

The solid fats sector
 
The solid fats cater to household and industrial sectors in the ratio of approximately 60:40. Industrial users are largely bakeries (including pastry makers), restaurants (including fast food outlets), food caterers and manufacturers of ice-cream, sweet confectioneries and snack food.

 


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