Palm Oil Facts & Figures

FACT SHEET

EFFICIENT & HIGHLY PRODUCTIVE 1. 2. 3. Oil palm is the most efficient oilseed crop in the world. One hectare of oil palm plantation is able to produce up to ten times more oil than other leading oilseed crops. (Refer to Figure 1) The most efficient producers may achieve yields as high as eight tonnes of oil per hectare.
4.14

average oil yield (tonnes per hectare per year)

4.5 4.0 3.5 3.0 2.5 2.0 1.5

Figure 1 Oil Palm Efficiency vs Other Major Oil Crops

1.0 0.5 0 Soybean 0.40

0.55

0.72

Sunflower

Rapeseed

Oil Palm oilseeds

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Among the 10 major oilseeds, oil palm accounted for 5.3% of global land use for cultivation, but produced 31.3% of global oils and fats output in 2011. (Refer to Figure 2 and Figure 3) Indonesia and Malaysia produce about 85% of the worlds palm oil. Other producer countries include Thailand, Columbia and Nigeria.

Rapeseed 13.0% Sunflower 9.4%

Oil Palm 5.3%

Rapeseed 13.2% Sunflower 7.3% Groundnut 2.2% Cotton 2.7% Soybean 23.2%

Others 18.2%

Soybean 40.9%

Palm Oil & Palm Kernel Oil 31.3%

Others* 20.1%

Cottonseed 13.2%

Figure 2 10 Major Oilseeds : Area in 2011 (Total =253.9 mil hectares)

Figure 3 Global Production of Oils and Fats in 2011 (Total =179.38 mil tonnes)
*Includes oils and fats such as butter, lard, fish oil, tallow and grease

(Source: Oil World 2012)

FACT SHEET

TOP SELLING 1. 2. 3. 4. 5. Palm oil is one of the 17 major oils and fats produced globally. China is the largest consumer of oils and fats, followed by the EU, India, and the United States. (Refer to Figure 4) Among the 17 oils and fats, palm oil was the highest consumed oil in 2011, reaching three billion people in 150 countries. (Refer Figure 5 and Figure 6) High palm oil consumption countries include China, India, Indonesia, and the European Union. Global consumption for palm oil was 49.05 million tonnes in 2011. Palm oil is competitively priced against soybean, rapeseed and sunflower oil in the world oils and fats

Per Capita Comsumption (kg) Consumption Population 70 60 50 40 30 502.3 313.1 30.6 24.6 242.3 14.6 59.6 54.7 1,347.6 1,241.5

Population (Million) 1400 1200 1000 800 600 400 200 0 EU-27 USA Indonesia
Economic Growth 4.5 - 6.0%

Figure 4 Per Capita Consumption of Oils & Fats, 2011

20 10 0

China
Economic Growth 8.2 - 10.5%

India
Economic Growth 6.9 - 7.8%

Consumption (million tonnes) 50 45 40 35 30 25 20 15 10 5 Palm Oil Soybean Oil Rapeseed Oil Sunflower Oil Others Lard & Tallow 0 24.05 16.65 12.95 8.71 7.42 49.05 42.15

Figure 5 World Consumption of Oils and Fats in 2011 (Total = 178.26 mil tonnes)

5.33 Palm Kernel Oil

4.82 Cottonseed Oil

4.03 Groundnut Oil

3.10 Coconut Oil

(Source: Oil World 2012)

Butter

Butter 1.0% Coconut Oil 2.7% Lard & Tallow Rapeseed Oil 3.0% 5.5% Sunflower Oil 7.8% Others 2.5% Soybean 13.6%

Fish Oil Olive Oil 1.2% 1.1%

Figure 6
Palm Oil 57.0%

World Export of Edible Oils and Fats in 2011 (Total = 68.7 mil tonnes)

Palm Kernel Oil 4.6%

Crude Palm Oil (cif Dutch) Crude Degummed Soybean (fob Dutch) Sunflower Oil (fob EU) Rapeseed Oil (fob Dutch) cif = cost, insurance and freight fob = free on board

Figure 7 Comparison of prices of Major Vegetable Oils from January 2001 to March 2010 (USD per tonnes)

CERTIFIED SUSTAINABLE 1. 2. Palm oil is the only vegetable oil to have a crop-specific sustainable certification standard, the Roundtable on Sustainable Palm Oil (RSPO). The RSPO brings together stakeholders, including Non-Governmental Organizations (NGOs) and social groups along the process value chain of palm oil production to promote the growth and use of sustainable palm oil products.

(Source: Oil World 2012)

Jan 01 Sep 01 Feb 02 Jul 02 Dec 02 May 03 Aug 03 Mar 04 Aug 04 Jan 05 Jun 05 Nov 05 Apr 06 Jul 06 Sep 06 Feb 07 Dec 07 May 08 Oct 08 Mar 09 Oct 09 Mar 10

Prices (USD per million tonnes) 2400 2200 2000 1800 1600 1400 1200 1000 800 600 400 200 0

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VERSATILE & UNIQUE 1. 2. Oil palm produces two different types of oils , which are palm oil and palm kernel oil. Palm oil is used in a wide variety of food products such as cooking oil, shortenings and margarine. Palm kernel oil a raw material in the production non-food products which include soaps, detergents, toiletries, cosmetics and candles. Palm oil is increasingly being used as feedstock for biofuel although its primary use remains for food. Palm oil has a unique chemical composition that offers greater advantages compared to other vegetable oils: It has a longer shelf life as it does not become easily rancid. Unlike other vegetable oils, palm oil is naturally semi-solid and does not need to undergo hydrogenation* to make it suitable for solid applications. The hydrogenation process is responsible for the formation of trans fatty acids which are detrimental to health.
* Hydrogenation is a chemical process that turns liquid oil into semi-solid form for the manufacturing of food products. It produces trans fatty acids that have higher levels of Low-Density Lipoprotein (bad cholesterol) and lower levels of High-Density Lipoprotien (good cholesterol).

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NUTRITIONAL VALUES 1. 2. 3. 4. Oils and fats are vital nutrients required by the human body to achieve and maintain good health. There are two types of natural fats, saturated and unsaturated fats. An adequate amount of fat is necessary in the human diet for proper digestion and nutrient absorption. Palm oil provides the right amounts of fat in a balanced diet. Vitamins A and E, essential for the normal growth and development of the human body, is obtained through food consumption. All vegetable oils contain natural vitamin E in compounds such as tocopherols and tocotrienols. Palm oil has the richest known content of natural tocotrienols. Studies have shown that tocotrienol helps lower bad cholesterol levels and protects the brain against diseases. Palm oil also is high in carotenoids, a rich source of vitamin A. Carotenoids can be stored in the body and be converted to vitamin A when needed. Vitamin A stimulates the immune system and controls the growth and functions of body tissues. Red palm oil, or mildly refined palm oil, has seventeen times more carotenoids than carrots. Palm oil is cholesterol and trans fat free. It is composed mainly of triglycerides of fatty acid with a balanced composition between saturated and unsaturated fatty acids. The latter comprises 40% monounsaturated and 10% polyunsaturated fat.

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(Source: MPOC 2010)

MALAYSIA 1. 2. 3. 62% of Malaysias land area is forest and this includes some of the worlds oldest rainforests. Malaysias forests are home to a rich diversity of flora and fauna that contribute to the natural preservation of the ecology. A recent study by Forest Resource Assessment reveals the latest forest area by country: Country Sweden Brazil Malaysia United States of America Germany France Argentina United Kingdom Denmark % Forest Area 69 62 62 33 32 29 11 12 13 Total Forest Area (Mil Ha) 28.203 519.522 20.456 304.022 11.076 15.954 29.400 2.881 0.544 Total Land Area (Mil Ha) 41.033 832.512 32.855 916.193 34.877 55.010 273.669 24.250 4.243

(Source: www.fao.org Global Forest Resources Assessment 2010)

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In 2011, Malaysian oil palm accounted for just 1.97% (5.0 million hectares) of the total 253.9 million hectares planted with oilseed crops globally. Yet, this 1.97% was able to supply a total of 12.7% (18.91 million tonnes) of global vegetable oils and fats output in 2011. Malaysian palm oil accounted for 26.2% (17.99 million tonnes) of the total global trade of oils and fats in 2011. In Malaysia, oil palm plantations make up 71% of agriculture land or 14.3% of total land area. Sime Darby contributes 7.5% of Malaysias palm oil production and 4.4% of global production.

It has the scent of violets, the taste of olive oil and a colour which tinges food like saffron but is more attractive
Cada Mosto, a 15th century explorer on discovering palm oil

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POVERTY ALLEVIATION 1. The palm oil industry is one of the key economic drivers of the agricultural sector in developing countries such as Malaysia and Indonesia. Its economic potential is greatest in the oil palm growing belt, a region that encompasses 5o north and south of the equator. In Malaysia, the industry provides direct employment for about 570,000 people. (Source: MPOC 2011) The industry also offers a long-term and stable source of income for its smallholders.

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OIL PALM RESEARCH & DEVELOPMENT IN MALAYSIA 1. In the 1960s, research and development in oil palm breeding began to expand after Malaysias Department of Agriculture established an exchange programme with West African economies and four private plantations formed the Oil Palm Genetics Laboratory. The government also established Kolej Serdang which became the Agriculture University of Malaysia (now known as Universiti Putra Malaysia ) in the 1970s to train agriculture and agro-industrial engineers and agro-business graduates to conduct research in the field. In 1979, the Palm Oil Research Institute of Malaysia (PORIM) was established. In 2000, the Malaysian Palm Oil Board (MPOB) was established following the merger of the Palm Oil Research Institute of Malaysia (PORIM) and the Palm Oil Registration and Licensing Authority (PORLA). Its principal objectives are to conduct and promote research and development in oil palm tree breeding, palm oil nutrition and potential oleochemical use. MPOB is funded by both the public and private sectors in a coordinated effort and as a result has become Malaysias top research entity. MPOB is committed to assist the industry to maximise productivity and production, increase product ranges, introduce new technologies and create opportunities for the Malaysian palm oil industry.

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