Palm Oil Market: Industry Prospects and Profitability
Driven by historically low prices, long shelf stability, nutritional benefits as well as rising demand from the bioenergy and oleochemicals industries, the palm oil market has been witnessing strong growth over the last few decades.
Palm oil, which is derived from the fruit of the oil palm (Elaeis Guinnesis) tree, originated in West Guinea and has been consumed across the globe for more than 5,000 years. The, large scale cultivation of oil palm on a commercial basis, however, began only during the mid1990s. Oil palms have a lifespan of 25-28 years and yield more oil per hectare of land than any other crop. They are also relatively less reliant on fertilisers, pesticides and water compared to other monoculture crops. When the oil palm is processed, it produces two types of oil — palm oil from the flesh of the fruit and palm kernel oil from the seed or kernel. Some of the major areas where palm oil is used are: •
Cooking oil in the manufacture of margarine, non-dairy creams and ice cream
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Cosmetics
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Natural fossil fuels used as biofuel in the transport industry
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Manufacturing of soaps and detergents
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Production of greases, lubricants and candles
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Pharmaceuticals
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Water-treatment products
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Production of bactericides