Case: Edible Oils Industry in Pakistan
Analysis of the case
This case provides thorough understanding of the Edible oil industry in Pakistan and how it has changed and evolved down the years. The case highlights different macro and micro environment factors which have an influence in shaping up the market of edible oils. Initially, Desi ghee was the most widely used edible oil in Pakistan. However, with the passage of time, there was a shift in trend from desi ghee to vanaspati ghee because of the limited supply of desi ghee could not keep up with the escalating demand. And in recent years, the increased health awareness among the public has led to a shift from vanaspati ghee to vegetable cooking oil. The increase in population and per capita income has caused edible oil consumption in Pakistan to increase six times over the last 30 years. This growth in consumption was leveraged by imports which were highly influenced by volatile oil prices in Pakistan. The case also discusses the nutritional value of saturated and unsaturated edible oils. Research shows that desi ghee and butter has saturated fat and vanaspati ghee (hydrogenated vegetable oil) has Trans-fat which increases the level of “bad” cholesterol also known as LDL. This increases the risk for heart disease and atherosclerosis. The processing of vanaspati ghee is also harmful to human health because nickel is used as a catalyst to prepare vanaspati ghee which is highly toxic and adversely affects human health. Inadequate checks on edible oils have also allowed producer’s to simply repackage processed palm oil which has very high levels of saturated fat and can be very harmful to human health. Vegetable oil such as canola oil, sunflower, soybean, olive and corn oil were the healthiest of vegetables oils with less than 15% saturated fat contents. There were number of reasons due to which oilseed agriculture failed in Pakistan such as high production cost, technical problems faced by the farmers and...
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