What is Palm Oil?

Palm oil is a consumable result of Arecaceae Elaeis oil palm fruit and kernels. Their specific red fruits are natural due to the high quantity of beta-carotene they contain.

Palm oil was originally cultivated in West Africa, where palm trees were interplanted in traditional agricultural production systems as well as other annual crops. Nowadays, palm oil production has become the main source of income for many rural residents in South East Asia, West Arfica and Central America. There are estimated 1.5 million farmers growing palm oil in Indonesia. With such quantity, palm oil not only turn into one of the main economic pillar of a country, but also as a catalyst in rural development and political stability.

Almost every household on the globe recognizes the use of the oil as a cooking oil, as one of the ingredients in margarine and many processed foods. Palm oil has also become a crucial element of many soaps, washing powders and personal care products, treating wounds and as biofuel.

In the year of 1961, there was a significant increase in palm oil trade with Nigeria holding 74% of the world’s total plantations (FAO 2002). However, in the early 1970s Indonesia’s monocrop plantations had taken over the position from Nigeria.

By 2000, Indonesia and Malaysia was confirmed of hosting over half of the world’s total plantation area, outnumbering Nigeria with just over 30%.

Palm oil demand world wide of estimated 36.5 million metric tonnes in 2008 and the keep increasing demand have opened a valuable opportunity to invest in the palm plantation industry in principal palm oil exporting countries such as Indonesia.

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Tags used:
Agricultural Production Systems  Biofuel  Oil Exporting Countries  Oil Palm  Oil Trade  Palm Fruit  Palm Trees  Plantation Area  Plantation Industry