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TRANSCRIPT
THE MALAYSIAN
PALM OILFACTS
MALAYSIAN PALM OIL BOARDMinistry of Plantation Industries and Commodities, Malaysia
www.mpob.gov.my
ABOUTPALM OIL
The Malaysian palm oil industry has experienced significant growth since the crop was first introduced into the country from West Africa in the late 1870s. The oil palm species (Elaeis guineensis) was originally planted as an ornamental plant. Since its introduction as an ornamental plant into Malaysia, the oil palm has proven to be one of the greatest success stories of the Malaysian economy. From its humble beginnings, the crop exponentially expanded from 54,700 hectares in 1960, to reach 1.023 million hectares in the 1980s and 2.030 million hectares in 1990s. This planted area further expanded to 3.376 million hectares in 2000 and increased to 5.64 million hectares in 2015. By 2020, it is estimated that total planted area will be around 5.8 million hectares.
2
PROVIDED BY NATURE
The oil palm tree grows in regions around the
equator. The tree is originally found in West
Africa and currently cultivated in Indonesia
and Malaysia, the world’s top palm oil-
producing nations.
FROM A TROPICAL CLIMATE
Nature plays a big part in the palm oil story.
What the tree loves above all, is sun. It thrives
on plenty of sunshine, temperatures ranging
between 24 and 32 degrees centigrade and
rainfall evenly distributed throughout the
year. Therefore, the most suitable areas for
cultivation are located between ten degrees
north and south from the equator. Apart from
Indonesia and Malaysia, other producers
include South and Central America, Thailand
and Western Africa.
*Germinated
oil palm seeds(3 months)
*Pre-nursery
young palm
seedling
(3-4 months)
*Planting materials
at the main nursery
(10-12 months)
Young oil palm
plantation
New variety of
palm oil tree
Mature oil palm plantationBunch weight : 10-15 kg
Fruitlets/bunch : 1000-3000
Oil/bunch : 22-25%
Kernel/bunch : 4%
Kernel production/year : 8 kg
Oil production/year : 42.5 kg
Species: : Elaeis guineensis
Type: : Tenera (DXP)
Planting density : 148 palm/ha
Nursery period : 24 months
Economic Life : 25 years
Palm Height: : 2.3 meters
Harvesting interval: : 15 days
No. of bunches/yr : 19
Shell: Tenera or (D x P), the oil palm
species commonly planted in
Malaysia, produces fruit with
a medium-thick shell
ANATOMY OF OIL PALM FRUIT
Kernel: The seed of the
fruit that produces
palm kernel oil
Mesocarp: The fleshy outer portion
of the fruit that produces
palm oil
OIL PALM CULTIVATION
*Source: Journal of Oil Palm Research Vol. 22 December 2010 p. 878- 886 Life Cycle Assessment of Oil Palm Seedling
Production (Part 1)
3
Double-stage nursery
4
MAJOR VEGETABLE OILHARVESTED AREA* (Mn Ha)
PLANTEDAREA
0.400.60
0.80
4.03
Soybean Sunflower Rapeseed Oil Palm*
121.00
24.80
32.80
18.00
Soybean Sunflower Rapeseed Oil Palm
AVERAGE OIL YIELD(T/Ha/Year)
PALM OIL IS MOST EFFICIENT BEARING CROP IN THE WORLD
Oil Crops Production (Mn T) % of total production Total area (Mn Ha) % of total area
Oil palm* 69.6 34.0 17.3 6.3
Soybean 48.7 23.8 120.9 44.2
Rapeseed 26.1 12.8 32.8 12.0
Sunflower 15.0 7.3 24.8 9.0
The oil palm is able to produce 4.03
tonnes of oil per hectare, making it
the highest productive crop compared
to output of 0.40, 0.60 and 0.80 oil
per hectare for soybean, sunflower and
rapeseed respectively.
That means 7 to 11 times less land area is needed to obtain the same amount of vegetable oil if palm oil substitutes the other oils completely.
*combined tonnage of palm oil and palm kernel oil
Source: Oil World December 2015
Source: Oil World December 2015 (*forecasted : 2015/2016)
5
OIL PALM PLANTATION: TOTAL PLANTED AREA IN MALAYSIA
MALAYSIA PALM OIL PRODUCTION 2005-2015
Palm oil production in Malaysia has increased over the years, from 7.81 million tonnes in 1995
to 14.96 million tonnes in 2005 and to 19.96 million tonnes in 2015.
PRODUCTION
1960
1970
1980
1990
2000
2001
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
0.06 0.
26
1.02
1.98
3.38 3.50
(Mn
Ha)
Year
3.80
3.88 4.
05 4.17 4.31 4.
49 4.69 4.
86 5.00 5.08 5.23 5.
39
2015
5.64
In Malaysia, the oil palm planted is mainly Dura x Pisifera (Tenera) hybrid which yields about 4.0 tonnes of palm oil per hectare together with 0.5 tonne palm kernel oil (PKO).
20
06
20
05
20
07
20
08
20
09
20
10
20
11
20
12
20
01
3
20
14
20
15
19
.67
19
.96
Pro
du
ctio
n (
Mn
T)
Year
19
.22
18
.79
18
.91
16
.99
17
.57
17
.73
15
.82
15
.88
14
.96
Source: MPOB Statistics & Oil World 2015
Source: MPOB Statistics & Oil World 2015
6
GLOBAL PRODUCTION OF VEGETABLE OILS 2015 (Mn T)
GLOBAL PALM OIL PRODUCTION (Mn T)
Olive
Oil
Coconut
Oil
Groundnut
Oil
Cotton
Oil
Sunflower
Oil
Rapeseed
Oil
Soybean
Oil
Palm
Oil
2.86 2.98 3.68 4.72
14.97
26.13
48.72
62.80
Pro
du
ctio
n (
Mn
T)
Edible Oils
2010 2011 2012 2013 2014 2015
59.40 62.80
56.3053.90
51.0046.20
Pro
du
ctio
n (
Mn
T)
Year
PRODUCTION
Since 1985, palm oil became the second most consumed oil in the world, after soybean oil.
Source: Oil World
Source: MPOB Statistics & Oil World
iGlobal palm oil production has increased from 15.2 million tonnes in 1995 to 62.8 million tonnes in 2015. Malaysia produced 32% of the total global palm oil production.
7
MAJOR VEGETABLE OILS EXPORT
PRICE TREND FOR 4 MAJOR VEGETABLE OIL OVER 10 YEARS (US-$/TONNE)
0.0
10.0
20.0
30.0
40.0
50.0
60.0
2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005
Ex
po
rt V
olu
me
(M
n T
)
Year
Olive oil Coconut oil Groundnut oil Coton oil Sunflower oil
Rapeseed oil Soybean oil Palm oil Sesame oil Corn oil
0
200
400
600
800
1000
1200
1400
1600
2015 2014 2013 2012 2011 2010 2009 2008 2007 2006
Pri
ce
(U
S-$
/ T
on
ne
)
Year
Crude Palm oil Soybean oil Rapeseed oil Sunflower oil
EXPORT AND PRICE TRENDS
i Palm Oil is the most traded vegetable oil in the world!
Source: Oil World
Source: Oil World
8
i Palm Oil is the most consumed vegetable oil in the world!
WORLD DISAPPEARANCE OF MAJOR OILS AND FATS - 2015
The nutritional values and the versatility of palm oil are renowned worldwide, especially in the
edible sector. Its unique characteristic of being semi-solid at ambient temperature allows for its
diverse applications in food and non-food products. In fact, all products using oils and fats as
ingredients can count on palm oil as a reliable raw material. The main traditional uses of palm
oil in food products are for cooking/frying, shortenings, margarines and confectionery fats. In
the frying industry, for example, palm oil is reputed as among the best and most suitable frying
oil. It offers several technical characteristics desirable in food applications, such as resistance
to oxidation, which contributes towards longer shelf life of end products. To the manufacturers
of solid fat products, palm oil is an excellent raw material because of its solid fat contents. It
does not have to undergo hydrogenation; hence does not contain undesirable trans-fatty acids.
Palm oil also offers great potential for use in non-food applications, particularly in the
production of oleochemicals products such as in soaps, surfactants and detergents, cosmetics
and personal care, as well as in agro and industrial products. Oil palm biomass is another
excellent potential for palm oil which will enhance the Malaysian palm oil industry’s growth,
competitiveness and sustainability.
Linse
ed Oil
Cas
tor
Oil
Ses
ame
Oil
Fish Oil
Oliv
e
Oil
Coc
onut
Oil
Cor
n
Oil
Gro
undnut
Oil
Cot
ton
Oil
Pal
mke
rn Oil
Butt
er,
as f
at
Tallo
w &
Gre
ase
Lard
Sunflow
er Oil
Rap
esee
d
Oil
Soy
bea
n
Oil
Pal
m Oil
0.7
0
0.6
7
0.8
1
0.8
5
2.9
4
3.0
7
3.2
1
3.7
2
4.7
4
6.7
4
8.0
3
8.3
6
8.6
0 15
.18
26
.71
48
.00
61
.28
Vol
um
e (M
n T
)
Edible Oils
CONSUMPTION
Source: Oil World
From fresh palm fruits, we obtain crude palm
oil which contains tri-, di-, monoglycerides
and free fatty acid which make up 99%
of the composition. The other 1% is minor
components consisting of a bouquet of
health beneficial phytonutrients.
BASIC COMPOSITION OF CRUDE PALM OIL
KERNELS
Crushing
Extraction
Crude Palm Oil
Reining
RBD Palm Oil
Fractionation
Palm Mid
Fraction
BlendingShortenings
Margarines
Vanaspati
Frying Cooking
Shortenings
Margarines
Cocoa Butter
Equivalent
RBD Stearin
Splitting2nd
Fractionation
Double
Fractionation
Olein
Palm Mid
Fraction
Blending
Cocoa Butter
Equivalent
Soaps
Fatty Acids
Soaps
Food Emulsiier
RBD OleinPalm
Kernel Meal
Blending
Animal Feed
Palm
Kernel Oil
Fractionation
And Reining
Olein
Margarines
Stearin
Confectionery
Fats
Reining
Margerines
Confectioneries
Filled Milk Ice
Cream Biscuit
Cream
Fatty Acid
Fatty
Alcohols
Amines
Amides
Glycerol
EmulsiiersHumectants
Explosives
Hydrogenation
Hydrogenated Palm Kernel Oil
Hydrogenated Palm Kernel Olein
Confectioneries
Coffee Whitener
Filled Milk
Coating Fats
Splitting
Soaps
Other Uses
Being
Researched
MILL PROCESS FRUIT RESIDUES FUEL
• Triglycerides
• Diglycerides
• Monoglycerides
• Free Fatty Acids
• Minor components
(Phytonutrients)
1%
99%
PROCESSING OFPALM OIL
9
10
FOOD USES OF PALM OIL ANDPALM KERNEL OIL
INTRODUCTIONPalm oil and its products are very versatile edible oil. They have a range of distinctive
properties, which enables to meet most of the quality and technological requirements. The
main uses of palm oil and its products in food applications are for cooking/frying, shortening,
margarines, cocoa butter substitutes, dairy fat replacers and animal fat replacers.
Cooking Oil
• Palm Olein is an excellent frying oil which is obtained from Malaysia’s golden crop, the
palm fruit.
• It’s neutral flavor enable easy expectance and incorporation in various food segments.
Palm olein is an excellent oil for deep, shallow and stir frying as well as for general
cooking.
• The oil has neutral odour and flavour, high oxidation stability and provides extended
shelf life for frying oil.
Shortenings
• Shortenings are made from 100% conditioned/textured solid fats which are composed
from either animal or plant based fats or in combination.
• Shortening imparts many functional properties in baked products such as structure,
texture, taste and stability. Palm based shortening offers a broad spectrum of
applications in the bakery industry such as breads, buns, pastries, cookies, pies, flat
breads, topping creams and filling creams.
Margarines
• Margarines are the substitute for dairy butter and are widely used in biscuits, cakes,
pastries, puff pastries, creams and spreads.
• Normally, margarine contains about 84% oils and fats phase, 16% of water phase with
permitted emulsifiers, flavours and colours.
• Palm oil is fractionated to obtain liquid oils and solid fractions. This provides the
extensive flexibility to blend palm based liquid oil and solid fats at various ratios to
meet the specific requirements of the diverse types of margarine.
Cocoa ButterSubstitutes
• Cocoa butter substitutes are used as an alternatives for chocolate coatings. They are
usually manufactured mainly from lauric oils or lauric stearins, particularly palm kernel
stearin.
Dairy Fat Replacers
• Dairy oils and fats are widely used in food preparation of such as special rice, pastries,
biscuits and desserts. The main concern by user of dairy oils and fats is the level of
cholesterol presence and the high price. Palm oil and its fraction serve as an excellent
solution to these setbacks.
Animal Fat Replacers
• The major animal fats found in the food chain are lard, tallow and chicken fat.
Animals fat are the main and important components in patties, sausages, nuggets and
pepperoni.
• Palm oil based animal fat replacers are able to imitate the functional properties of
animal fats such as tallow, lard and chicken in a wide range of applications.
• Animal fat replacers from palm oil and its fractions provide a healthier food ingredient
option as it is free of trans-fatty acids and cholesterol.
11
NON-EDIBLE USES OF PALM OIL AND PALM KERNEL OIL
OLEOCHEMICALS INDUSTRY Palm oil offers great potential for use in non-food applications, particularly in the production
of intermediate and final oleochemicals products such as soap, surfactants and detergents,
cosmetic and personal care, agro and industrial products. Currently, less than 20% of palm oil
produced is used in non-food applications.
Soap production is one of the most important applications of oils and fats. The traditional raw
materials used for soap making were tallow and coconut oil. Due to the similarity in their fatty
acid compositions, palm and palm kernel oils offer good and competitive alternatives to tallow
and coconut oil respectively, as raw material for soap making.
BIOMASS INDUSTRY Another new growth area of great potential is oil palm biomass which will enhance the industry’s
growth, competitiveness and sustainability. There are now industrial plants manufacturing
particle board, medium density fibreboard (MDF) and plywood from oil palm biomass. Biomass
from the oil palm can also be used in fibre composites. Technologies are available to enable
car body components to be made of fibre composites.
Palm oil products in the non-food sector. E.g soaps and cosmetics
Applications of Oil Palm biomass. E.g Board (MDF, Plywood, Particleboard, Sawn lumber and Mineralized board) and
Fibre Composites (Plastic composites and Agrolumber)
GENETICALLY MODIFIED ORGANISM (GMO) FREEOil palm is a non-genetically modified crop. Oil palm is bred through a natural process of
breeding and is not genetically modified.
CHOLESTEROL FREELike all other vegetable oils, palm oil is cholesterol-free. Palm oil contains a balanced
proportion of unsaturated and saturated fatty acids at about 50% each. However, in the body,
it behaves more like a monounsaturated fat and has no adverse impact on cholesterol levels.
Both palm olein and olive oil exert similar effects on cholesterol level in healthy volunteers.
FREE OF TRANS-FATTY ACIDHaving a unique and balanced composition of saturation and unsaturation, palm oil does not
require hydrogenation for use as a fat component in foods, thus avoiding the formation of
trans-fatty acids. Trans-fatty acids have been proven to have detrimental effects on health.
Therefore, palm oil and palm stearin are good alternatives to replace trans-fat and formulate
trans-free food products.
Cholesterol Free
Competitive Price
Anti-Oxidant Property
ADVANTAGES OFPALM OIL
Genetically Modified Organism (GMO) Free
High Nutritional Value
High Stability
Free of Trans-Fatty Acid
12
SAFA: Saturated Fatty Acid
MUFA: Monounsaturated Fatty Acid
PUFA: Polyunsaturated Fatty Acid
PALM OIL AS A HEALTHFUL AND PREMIUM OIL
cocoa butter
Saturated Fatty Acids Monounsaturated Fatty Acids Polyunsaturated Fatty Acids
palm olein
lard
groundnut
soybean
olive
high oleic sunlower
Total Fatty Acid Composition of oils and fats
% Fatty Acid
canola
rapeseed
0 20 40 60 80 100
Source: MPOB
Palm oil contains almost equal amounts of unsaturated and saturated fats. In the body,
it behaves more like a monounsaturated oil and has no adverse impact on cholesterol level.
13
14
Palm oil contains approximately 1% of minor components, including carotenoids, tocotrienols,
phytosterol, coenzyme Q10, lecithin and squalene. These components have beneficial health
properties including antioxidant, cancer prevention and cholesterol lowering effects. Palm oil is
the richest source of natural tocotrienols, an anti-oxidant that is several times more powerful
than the tocopherols. Studies have shown that palm tocotrienols have anti-inflammatory,
cholesterol lowering, anti-oxidant, cancer preventive, radioprotective and neuroprotective
properties.
PALM OIL PHYTONUTRIENTS
VITAMIN E (Tocopherols
& Tocotrienols)
•Hypocholesterolemic
•Anti-oxidative defence
mechanism
•Cardioprotection effects
•Anti-cancer
•Anti-cancer effects
•Prevention of cataract
•Improves vitamin A and
anti-oxidative status
•Reduces prevalence of
Bitot’s spot
•Anti-inlammatory•Cardiovascular prevention
•Radioprotection
•Immune booster
•Cancer prevention
•Hormone regulator
•Skin Protection
•Powerful anti-oxidant
•Cholesterol Reducer
•Neuroprotection
•Bone protection
LECITHIN PHYTOSTEROLCAROTENOIDS COENZYME Q10
•Metabolic precursor of
cholesterol and other steroids
•Anti-oxidant
•Strengthen immune system
SQUALENE
PALM-BASED PHYTONUTRIENTS ANDTHEIR FUNCTIONS
15
SUSTAINABILITY OF THE MALAYSIAN OIL PALM INDUSTRY
SOCIAL DEVELOPMENT The oil palm industry meeting the needs of the poor by:
• Eradicated poverty and narrowed income gap between town and rural folk
• Created rural townships where workers reside and enjoy good quality of life
• Contributed to social security and peace
• Reduced migration of labour force from rural areas
ENSURING ECONOMIC PROGRESSSustainability is also stressed in Malaysia’s Economic Transformation Programme (ETP). This programme aims to transform Malaysia from a middle-income to a high income nation by 2020 by focusing on a few key growth sectors identified under the National Key Economic Areas or NKEAs. The palm oil sector is one of the 12 NKEAs. Notwithstanding the aim of achieving the status of a high income nation, the ETP adopts a holistic approach and also incorporates the social and environmental aspects as integral parts of the programme. The ETP takes cognisance of the disparity in incomes of the multi-ethnic communities and features the important social element of inclusiveness. From the environmental aspect, growth in the ETP must be sustainable with preservation of environment and natural resources being priced into
the cost of development.
CONSERVATION AND MANAGEMENT OF THE ENVIRONMENT AND BIODIVERSITY The Malaysian oil palm industry’s high commitment to conservation and management is evidenced in the voluntary participation in sustainable practices including sustainability certification, good agricultural practices, trapping of biogas from palm oil mill effluent, use of milling residues as renewable energy and the results of the life cycle assessment of palm oil for improving environmental performance. Efforts in sustainability include a concerted effort by the industry to shift from pollution control to that of pollution prevention, minimization of pollution from palm oil production and all environmental impacts associated with the full life cycle of oil palm as well as the adoption of new environmentally sustainable technologies. Malaysia’s efforts on sustainability are a continuous improvement process because palm oil is a ubiquitous source of feedstock for the global industries as well as an important source of
employment and economic resource for Malaysia.
One of the most challenging issues confronting the oil palm industry is proving its commitment to the sustainable development of the oil palm industry. Contrary to the allegations from non-governmental organizations that oil palm cultivation is one of the major causes of deforestation and declining biodiversity, the development of the Malaysian oil palm industry is very well regulated and current practices remain committed towards the three components of sustainability, namely social development, economic progress & conservation and management of the
environment and biodiversity.
envi
ronm
ental stewardship
SUSTAINABILITY
econom
ic prosperity
social responsibility
16
Malaysian Standard on Sustainable Palm Oil (MSPO)
What is MSPO?• A National standard on sustainability – applicable to all categories of oil palm industry
covering small, medium and large plantations
• It is a standard that complies with Malaysian laws and ratified international agreements/
conventions to ensure that all oil palm premises in Malaysia are sustainably certified
• A Standard that is based on a balanced three pillars of sustainability - people, planet and
profit.
SUSTAINABILITY
The MSPO document consists of 4 parts:MSPO Part 1: General Principles for Malaysian Sustainable Palm Oil
MSPO Part 2: General Principles for Independent Small holders
MSPO Part 3: General Principles for Oil Palm Plantations an Organized Smallholders
MSPO Part 4: General Principles for Palm Oil Mills
• MSPO was launched in 2013 which was an initiative of MPOB following the request
from stakeholders of the Malaysian oil palm industry. Its standard is dynamic and will be
continually improved to ensure current issues on sustainability are well addressed.
• It is a governmental initiative to ensure palm oil producers in Malaysia comply with
Malaysian Laws and ratified international laws related to sustainability.
• In 2015, Malaysian Palm Oil Certification Council (MPOCC) was established to manage and
implement an impartial and credible certification scheme for the Malaysian oil palm industry.
• As of December 2015, 304,273.87 tonnes of crude palm oil was certified under MSPO.
NOTES
NOTES
17
Washington DC
Brussels
Cairo Karachi
Mumbai
Shanghai
Kuala Lumpur
MPOB REGIONALNETWORK
HEAD OFFICE
Malaysian Palm Oil Board
6, Persiaran Institusi, Bandar Baru Bangi
43000 Kajang, Selangor
Malaysia
Tel. No. : +60 (0)3 8769 4400
Fax : +60 (0)3 8925 9446
Website : www.mpob.gov.my
Malaysian Palm Oil Board (MPOB)
Technical Advisory Services
West & Central Asia Regional Ofice
Regional Manager : Mr. Mohd Fairus Mohd
Hidzir
No.G-30/6, Sea Breeze Villas
Block 8, Kehkashan, Clifton
G.P.O. Box No. 1352
Karachi-74200
Pakistan
Tel : +92 21 3583 1823 / 3583 2252
Fax : +92 21 5831 779
Email : [email protected]
Malaysian Palm Oil Board (MPOB)
Technical Advisory Services
Americas Regional Ofice
Regional Manager : Mr. Johari Minal
3516 International Court, N.W.
Washington, D.C. 20008,
U.S.A.
Tel : +1 (202) 572 9719 / 9768
Fax : +1 (202) 572 9783
Email : [email protected]
Malaysian Palm Oil Board (MPOB)
Technical Advisory Services
Africa Regional Ofice
Regional Manager : Mr. Isa Mansor
c/o Embassy of Malaysia
21, El-Aanab Street
El Mohandessine, Giza
Egypt
Tel : +202 3761 0184
Fax : +202 3761 0174
Email : [email protected]
Malaysian Palm Oil Board (MPOB)
Technical Advisory Services
Europe Regional Ofice
Regional Manager : Dr. Kalanithi
Nesaretnam
c/o Embassy of Malaysia
Avenue de Tervueren 414A
1150 Brussels
Belgium
Tel : +32 2 7628 997
Fax : +32 2 7628 998
Email : [email protected]
Palm Oil Research & Technical Service
Institute of Malaysia Palm Oil Board (PORTSIM)
Technical Advisory Services
Regional Manager : Dr. Ooi Cheng Keat
Level 2, No 18, Lane 88
Yuanshan Road
Xinzhuang Industrial Park
Minhang, Shanghai 201108
P.R. China
Tel : +8621 6442 3303
Fax : +8621 6442 3866
Email : [email protected]
Malaysian Palm Oil Board (MPOB)
Technical Advisory Services
India Branch Ofice
Regional Manager : Dr. Nagendran Bala
Sundram
Unit No. 12, Ground Floor,
Rupa Solitaire Building, Building No. A-1,
Sector 1,
Millenium Business Park,
Mahape, Navi Mumbai,
Maharashtra, India.
Email : [email protected]