Palm oil market analysis

Here are some details of palm oil industry that you should know before starting your palm oil production business, build a palm oil processing plant or invest in a palm oil processing company.

The Distribution area of Oil Palm and Top Countries of Palm oil Production:

Oil palm is one of the most oil bearing plant in the world and it has diverse uses which is applied in both food and non-food industries. Oil palm is grown in tropical and subtropical regions with suitable environmental conditions.

In recent decades, the demand for edible vegetable oils is growing rapidly. To meet the increasing demands, both the size and number of palm oil plantation have largely expanded. More and more investors step into oil palm plantation and palm oil production business. Below is the Top 10 production nations of palm oils, among of them Indonesia, Malaysia, Thailand, Colombia, and Nigeria are the largest producers of palm oil. More top countries of palm oil productioon, see the complete list below.

Rank Country Tonnes
1 Indonesia 29,278,200
2 Malaysia 19,667,016
3 Thailand 1,854,000
4 Colombia 1,109,586
5 Nigeria 910,000
6 Papua New Guinea 500,000
7 Honduras 460,000
8 Guatemala 448,000
9 Brazil 370,000
10 Cote d'Ivoire 370,000
11 Ecuador 330,000
12 Costa Rica 312,944
13 Democratic Republic of the Congo 305,000
14 Cameroon 253,000
15 China, mainland 233,192
16 Ghana 121,000
17 Philippines 115,000
18 Peru 105,000
19 Mexico 83,000
20 Sierra Leone 61,000

About oil palm fruit:

palm oil processing Palm fruit bunches and palm fruit

Oil Content of Palm Fruit Pulp and Palm Kernel:

palm oil processing Oil content of each part of palm fruit

Why Extract Palm Oil?

Oil palm is one of the most oil bearing plant in the world and it has diverse uses which is applied in both food and non-food industries. And the palm oil accounts for 35% of the world's vegetable oil market. What's more, there's a lot of evidence that investing in palm oil is a lucrative business.

Reason1: High Oil Content;

The oil palm can produce two types of oil: One is extracted from the flesh of the fruit (palm oil), and the other from the seed, or kernel (palm kernel oil). The oil content of palm fruit is about 45%-50%, the oil content of palm kernel is about 50%--55%. They all belongs to high oil yield crops.

Reason2: Wide Application:

Palm oil in the world, is widely used in cooking and food manufacturing. It is used as cooking oil, crispy fat and margarine to use. The same as other edible oil, palm oil can be easily digested, absorbed, and promote human body health.

Palm kernel oil is commonly used in commercial cooking because it is lower in cost than other oils and remains stable at high cooking temperatures. The oil can also be stored longer than other vegetable oils.

Reason3: Palm fruit can be harvested all year round;

Harvested all year round, oil palm trees produce on average 10 tonnes of fruit per hectare, far more than soya, rapeseed and sunflower crops. This means oil palm requires 10 times less land than the other three major oil producing crops, soya, rapeseed and sunflower.

How Is Palm Oil Processed?

After be harvested, the Fresh Fruit Bunches (FFB) will be transported to a palm oil mill for processing. The detail palm oil processing steps are as follows:(You may be interested in: What is the processing steps for produce palm oil in palm oil mill?)

palm oil processing stepsPalm oil processing steps

1) Steps 1—— sterilization:

After collecting, by hot water or steam to make the fresh palm fruit bunches(FFB) be soft. Sterilization process is good for the behind processing, and reducing the damage of palm kernel.

2) Steps 2——threshing:

Separating the palm fruits from FFB, and get the palm fruits to press the crude palm oil.

3) Steps 3—— pressing:

Using the digesting machine to break the palm fruits into pulps, and then using the palm oil pressing machine to press the crude palm oil.

4) Steps 4—— clarification:

After oil pressing, there are some fibers and other impurities in the crude palm oil, after clarification, you will get the cleaning CPO.

5) Steps 5 —— Final oil drying:

Using the drying machine to remove the water of the palm oil, it will make the palm oil more stable and extend its storage time.

After above processing, you can get crude palm oil(red oil), if you want the further production to get best quality cooking oil, it need refinery and fractionation plant.

After palm oil extraction process, we can get crude palm oil and pressed cake, If you want to extract palm kernel oil, you need to buy palm kernel oil processing machine. More information, welcome to read: Palm kernel oil making machine

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