Environmental Changes and Gaining Competitive Advantage in the Vegetable Oil Industry

Abstract

One of the commodities of concern for import expansion due to globalization is vegetable oil. In this paper, we review the commodity characteristics and social and technological conditions of oilseeds, vegetable oils, and vegetable oil meals, and identify the incentives and barriers to the future expansion of vegetable oil imports. We then examine how vegetable oil producers are taking measures to gain competitive advantage in the face of recent environmental changes, such as vegetable oil imports, which may occur in the medium to long term, from the perspective of management strategy theory. In conclusion, we have summarized that, as recent environmental changes, imports of vegetable oil due to trade liberalization are unlikely to occur soon because the profits from domestic crushing are large and there are not enough tanks for storage, while the transition of the livestock sector, which is a consumer of vegetable oil meal, is one of the areas to watch. In addition, we confirmed that stable procurement of raw materials is an urgent issue. The vegetable oil manufacturing industry has been working on building cooperative competitive relationships within the industry, structural reforms, creating demand for high value-added oils, diversification, overseas expansion, and capital investment that can cope with vegetable oil imports.