Borneo Conservation Trust - Oil Palm Plantations

Palm Oil: Economic Lifeblood
Nearly 90% of the world’s palm oil comes from Borneo Island, Malaysia and Indonesia. Palm oil is the most used oil in the world—worldwide demand rose to 36 million tones in 2006 and continues to increase every year. As of 2006, 4.17 million hectares of Malaysian land were producing palm oil— that's nearly 13% of Malaysia's total area. Alone, Malaysia accounts for 51% of worldwide palm oil production! Palm oil production provides direct employment for over 570 000 people and earns an average annual foreign exchange of over $9.4 billion USD.

King of Edible Oils
Compared to other commercial oil crops, oil palms are the most efficient and sustainable. They have a much higher calorific value per hectare than other crops: At 180Gj/Ha, Borneo’s production of palm products in 2005 provided the total calorific requirements of 300 million people.

Soybean oil produces only 50Gj/Ha, and rapeseed (Canola) produces 70Gj/Ha. Palm oil can be harvested throughout the year and is exclusively non-GMO. One hectare of palm plantation yields 3,475kg of palm oil which is 10 times larger than soybean oil output.

Compared to other commercial oil crops, Oil Palm is more efficient, sustainable and biodiverse

Some Food Uses

All-purpose cooking oil
Frying oil
Shortening
Emulsifier
Margarine
Breads
Ice cream
Instant noodles
Cocoa butter replacement
Chocolate, sweets

Some Non-Food Uses

Bio-diesel
Paint
Printing Ink
Polyurethane
Plastics
Soap
Detergent
Surfactant
Lubricant/grease
Cosmetics
Candles
Glue

Growing to Meet Worldwide Demand
Worldwide demand for palm oil has risen sharply and steadily for the past decade. The biggest importers of palm oil are China and the European Union. India, Pakistan and the USA are also major consumers.

Besides increasing population and need for food, another major driver of oil palm demand is peak oil and fuel shortage. With the worldwide production of crude oil reaching its peak, bio-diesel, a palm oil product, is seen as a good alternative to fossil fuels. Illustrating this, a major Japanese automaker contracted 270,000 hectares of palm oil plantations for bio-diesel in 2007.

A Versatile Commodity
Although most of the palm oil produced is eaten as food, large quantities are used for other commercial purposes. Oleochemicals are produced from palm and palm kernel oils and fats. They are similar to petrochemicals, which are chemicals derived from petroleum. Palm Oleochemicals have many uses. For example, in cosmetics, palm products make the skin soft and supple, moisturize, remove oil and dirt, and provide antioxidant action.

With so many benefits and applications, it is little wonder that palm oil is the biggest edible oil in the world and continues to grow.

The Issues - Forest Fragmentation - Conflict with Humans