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Palm Oil Industry in Malaysia Skills & Knowledge for Sustained Development in Africa 24 June 2009
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Origin of Palm Oil ! !
The oil palm tree (Elaeis Guineensis Jacq.) originated from West Africa in a belt from Angola to Senegal. The earliest archaeological evidence on palm oil consumption was found in an Egyptian tomb in Abydos. " As no palm oil was produced in the country, the evidence implied that the oil had been traded during the time of the Pharaohs, 5,000 years ago
Original steps to extract palm oil
!
Harvesting fruit bunches
!
Cooking to sterilise fruit bunches
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Separate fruitlets from the bunch
!
Softening the fruitlets
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Pressing out oil
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Oil collection
The oil palm tree (Elaeis Guineensis Jacq.) originated from West Africa with a history of consumption dating back to 5,000 years. Today it feeds ~3 billion people in 150 countries.
Source: MPOC Publications
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1
Global Palm Oil Industry Today, palm oil is one of the 17 major oils traded in the global edible oils & fats market. Palm oil can be found in one out of every ten food products worldwide. Key importers of palm oil today are China, India, EU-27 & Pakistan.
! ! !
Global vegetable oil supply (M MT) 250
1,000 3% 207
Supply Growth 200
(2010 -2020F)
161
129
121
4,532 15%
13% 20.59
15% 16%
100
29%
20.03
16% 18.91 35%
33% 53.38
5,223 17%
45.44
33% 40.36 50
46% 94.3
40%
4,694 16%
64.57
34%
35%
60.7
19.7
16% 19.05
11,748 40%
17% 23.39
14% 22.85
150
1,840 6%
14% 28.17
4.8%
43.58
43.03
China Pakistan Others
0 2008
2010F
Palm Oil
952 3%
2015F
Soybean Oil
2020F
Rapeseed Oil
Others
EU-27 Bangladesh
India United States
World Palm Oil Imports(2008)
Palm oil is expected to make up 34-46 % of vegetable supply (2010-2020F)
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Source: LMC – Oilseeds Outlook for Profitability to 2020 (Jan 2009), USDA Database – April 2009
Palm Oil Value Chain & Applications Upstream
Downstream Processing
Midstream
ACTIVITIES ! Seed production ! Nursery ! Cultivation ! Harvesting ! Milling
Trading Crude palm oil bulking
! !
Refining Fractionation Oleochemical Esterification Refined product storage
! ! ! ! !
Consumer Products ! ! !
Packaging and branding Food products Non-food products
PRODUCTS
7
5
/1
99
3
99 /1
19
96
1
19
92
/1
99
20%
94
9
19
19
90
/1
99
7 /1
98
5
98 /1 19
19
88
/1
98
3
!
Food Use
35,000
Crude palm oil Palm kernel Crude palm kernel oil Palm kernel cake
! ! !
86
1
98
19
84
/1
98
/1 80
19
19
82
7
97
/1
97
78 19
76
/1
19
40,000
19
74
/1
97
5
!
45,000
9
DxP seeds Fresh fruit bunches Crude palm oil Palm kernel Biomass (Empty Fruit Bunches, kernel shell, fronds) Palm oil mill effluent
! ! ! ! !
Non-Food Use
30,000
! ! ! ! ! ! ! ! ! ! ! ! !
25,000 20,000 15,000 10,000 5,000
! ! ! ! ! ! ! ! !
Cooking oil, frying fats Margarine Shortening Vanaspati Ice cream, non-dairy creamers Candles, soap Emulsifiers Vitamin E supplements Confectionery Bakery fats Biodiesel Energy generation Animal feed Organic fertiliser from biomass
7
20
06
/2
00
00
5
3
1
00
/2
/2 02
04 20
20
7
9
00
99
/2
/1 98
00 20
5 99
99 /1
/1 94
96 19
19
3
1
99
92
/1
19
19
7
9
99
98
/1
/1 88
90 19
5
98
98 /1
86
/1
19
19
1
3 98
98 /1
/1
84
82 19
19
9
7
97
97
/1
80
78 19
/1
/1 76
19
74 19
19
5 97
3 97
1
/1
19
72
/1
97
9 70 19
5
7
96
96
96 /1
/1
/1 66
68 19
19
64
! ! ! ! !
80%
0
19
RBD Palm Oil Palm Fatty Acid Distillate RBD Palm Olein RBD Palm Stearin RBD PK Olein RBD PK Stearin Cocoa Butter Equivalent Cocoa Butter Substitute Cocoa Butter Replacers Fatty acid, alcohols, amines, amides Glycerines Palm methyl esters Tocotrienol
These days, palm oil and derived products are channeled into worldwide industrial and commercial activities to churn out food products as well as non-food applications. 4
Source: MPOC Publications, USDA Database
Palm Oil Benefits Versatile • As the cheapest traded edible oil, palm oil can be used for food and non-food purposes • Examples of food use " Cooking Oil " Shortening " Margarines " Vanaspati " Cocoa butter substitutes " Key ingredient in instant noodle production • Examples of non-food use " Oleochemicals " Biodiesel " Energy generation
Healthy • Balanced composition of saturated and unsaturated fatty acids " Saturated palmitic acid (44%), " Monounsaturated oleic acid (40%) " Polyunsaturated fatty acids (10%) • Can be blended with other soft oils to meet AHA1 recommended ratio of 1:1:1 (saturated, monounsaturated, and polyunsaturated fatty acids) • High carotene content •
15x higher than carrots
•
50x higher than tomatoes
• Cholesterol-free, no risk of trans fatty acids " Does not require hydrogenation in food use • Contains vitamin E " Highest content of tocotrienols among edible oils " Also contains tocopherols " Meets the FAO/WHO Food Standard requirements under the CODEX Alimentarius Commission Programme.
1. American Heart Association Source: MPOC publications
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Palm Oil Benefits Sustainable • Compared to other oilseeds, the oil palm tree: " Has the highest oil yield per ha " Requires the lowest fertiliser inputs (~1MT of fertiliser per planted ha) " Productive cycle of ~25 years • RSPO-compliant producers are required to meet specific environment & social criteria • Eco-friendly practices • Wastage from plantations are reused e.g. " EFB – mulched as fertilisers back in estates " Palm kernel shells – biomass feedstock at mills for steam generation " Palm oil mill effluent – biogas for electricity generation
Not only does palm oil have the potential to feed world due to its abundance, but it is also a versatile, healthy and a sustainable source of oil. Source: MPOC publications
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Oil Palm Cultivation Area Physical Conditions for Oil Palm Planting
- Prime Area - Plantable Area Plantable = +/- 10 degrees off the equator. Prime areas = +/- 5 degrees off the equator.
! Located within the equator band ! Humid tropical climate ! Temperature range of 24-32 C throughout the year ! Ample sunshine (~ 5-7 hours a day in all months) ! Evenly distributed annual rainfall of ~ 2,000mm ! Soil pH
