Introduction. MPOC commissioned Europe Economics, a London based consultancy, to prepare a report on the global economic benefits of Palm Oil.
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2 Introduction MPOC commissioned Europe Economics, a London based consultancy, to prepare a report on the global economic benefits of Palm Oil. Andrew Lilico, Executive Director of Europe Economics and author of the report, is specialised in economic regulatory questions, while also providing advocacy to the European Commission, the UK Government and regulators. The study The Downstream Economic Impacts of Palm Oil Exports measures the scale & positive impact of Palm Oil in importing countries. The report highlights the benefits of Palm Oil in the global economy (billions of dollars in, Tax revenues and millions of Jobs created). 1
3 Global Data Palm Oil is an important provider of economic and social benefits to the global economy. The data collected is significant and shows the importance of Palm Oil imports. Palm oil not only benefits producing countries but benefits as well importing countries (businesses as well as consumers) around the world. Biggest contributions from Palm Oil imports are found in the manufacturing, distribution and services sectors. 2
4 Global Data Global imports of Palm Oil (mostly from Malaysia and Indonesia) amount for over 52m tonnes. India, the EU 27, China, the United States of America account together for 60% of the total Palm Oil imports by value in $39BN 1 $4.3BN 2 2.9M JOBS 3 1. Around $44bn of traded palm oil was associated with an indirect contribution to value added in downstream industries of nearly $17bn; or an indirect and induced contribution to of nearly $39bn. 2. Palm Oil is associated with a contribution to tax revenues in the world of $4.3bn. 3. Palm Oil is associated with creating and sustaining 2.9m jobs globally. 3
5 United States of America $8.76BN $860M 62,000 JOBS 4
6 European Union (28 Member States) 6.42BN 1.2BN 93,620 JOBS 5
7 India India is the world s biggest importer of Palm Oil. India represents more than 1/3 of Palm Oil jobs globally. 221BN 23.84BN 1,134,000 JOBS 6
8 China The Economic benefits for China is $7bn of annually. China represents 1/3 of Palm Oil jobs globally BN 6.16BN 929,000 JOBS 7
9 Rest of the World 8.92BN 1.56BN 411,000 JOBS 8
10 Conclusion Value for Malaysian Palm Oil: Source of income and pride for 300,000 small farmers. Investment and prosperity to rural communities. Over 1 million Malaysians jobs in the Palm Oil sector. Positive tax revenue. Specific country data to be used in promotional campaigns in importing countries. Specific country data to provide national Governments and Politicians in importing countries. Media (articles, op-ed) : Data will be used prominently to promote the real value of Palm Oil. 9
11 About the Author Andrew Lilico is Executive Director and Principal of Europe Economics, a London-based consultancy specialising in economic regulation, competition policy, and the application of economics to public and business policy issues. At Europe Economics, Andrew Lilico has done extensive economic and regulatory research for clients such as the European Commission, UK government departments and regulators. Andrew Lilico has been published in UK and international media including City A.M and The Times, and has appeared on programmes such as Sky News, CNBC and Bloomberg. Andrew Lilico has received his first degree from St. John s College, Oxford, and his PhD from University College of London, where he also lectured in macroeconomics and in monetary theory. The Malaysian Palm Oil Council commissioned Europe Economics to measure the scale and positive impact of Palm Oil in importing countries. 10
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