(Image taken online, for  reference only)

Oil Palm Development

1. The Benefits of Planting Oil Palm

• Oil palm production provides employment opportunities up to 8 hours daily per employee 

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• Oil palm is one of the highest-yielding crops

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• The global demand will reach 68 million tons in 2020

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• Oil palm has significant effects in many areas namely increasing good cholesterol content via consumption, reducing the chances of having heart attack, the leftover shell can be mixed with coal and used as fuel, reducing coal consumption whilst reducing carbon emissions, particularly suitable for industries that use coal as fuel such as cement and electricity generation                                                                       

2. Palm Oil Processing System

(Image taken online, for  reference only)

3. The Usage of Palm Oil

• Cosmetics

• Food 

• Edible oil

• Cleaning supplies 

• Bio-diesel 

• Pet cleaning supplies

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(Image taken online, for  reference only)

4. Major Exporter of Palm Oil

• The major producers and exporters of palm oil globally are Indonesia and Malaysia. 

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• Malaysian’s palm oil has a stronger global influence, but the overall output is basically between 19     

   and 20 million tons. 

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• Indonesia has a higher annual output with an increase to about 35 million tons, in replacing Malaysia     as the world’s largest producer of palm oil. 

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• Indonesia's total export of palm oil is about 17.8 billion US dollars. 

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• 40% of Indonesian farmers are related to palm oil production.

5. Set Up a Derivative Exchange to Stabilized Palm Oil Futures Prices

• In order to reduce the impact of price fluctuations of palm oil at the international level; in 1980,

   Malaysia established the Kuala Lumpur Commodity Exchange Market, which now known as the

   Malaysian Derivatives Exchange. 

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• The trading process is as follow: first, the traders composed of representatives from international

   commodity trading institutions, planters, refiners and consumers whom agree on a standardized

   price of palm oil, where producers and consumers will sign for sale and purchase , whilst to ensure

   delivery within a specified date. 

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• This is to protect palm oil traders from price fluctuations while maintain the sustainability of palm oil

   prices to a certain extent. 

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• In 2006, the average price of Malaysian palm oil was RM 1510.5 per ton.