Palm oil industry overview

Date:2018-09-28/ Industry News/ CHAT ONLINE

Here are some details of palm oil industry, palm oil market, palm oil extraction process, palm kernel oil extraction process that you should know before starting a palm oil processing business, build a palm oil mill plant or invest in a palm oil company.

What is palm oil?

Palm oil is derived from the flesh of the fruit of the oil palm species E. Guineens is. In its virgin form, the oil is bright orange-red due to the high content of carotene.

Palm oil is semi-solid at room temperature; a characteristic brought about by its approx. 50 percent saturation level. Palm oil (and its products) has good resistance to oxidation and heat at prolonged elevated temperatures; hence, making palm oil an ideal ingredient in frying oil blends. Manufacturers and end-users around the world incorporate high percentages of palm oil in their frying oil blends for both performance and economic reasons.

In fact, in many instances, palm oil has been used as 100 percent replacement for traditional hydrogenated seed oils such as soybean oil and canola. Products fried in palm oil include potato chips, french fries, doughnuts, ramen noodles and nuts.

palm fruit bunchesPalm fruit bunches

Oil Content of Palm Fruit Pulp and Palm Kernel:

Palm bunches



Empty 35%
Palm fruit 65% Pulp 52% Palm oil 26%
Dry materials 26%
Nut 13% Shell 6.5%
Palm kernel 6.5% Palm kerne oil 3.25%
Dry materials 3.25%

Why Extract Palm Oil?

Palm oil accounts for 35% of the world's vegetable oil market and there's a very good reason why palm oil mill is a great investment projects.

High Oil Content

Wide Application: Palm oil is widely applied in biofuel and energy, animal feed (palm kernel expeller), personal care and cosmetics (mainly palm kernel oil), consumer retail food and snack manufacturers, pharmaceutical, foodservice/service industry.

In addition to the 3.74 tonnes of palm oil per hectare, 0.4 tonnes of palm kernel oil and 0.4 tonnes of palm kernel expeller / cake are also produced from the fresh fruit bunches or FFB. Palm kernel oil is a widely used ingredient in the personal care market, and palm kernel expeller is used extensively in pellet production plant for making bio-energy fuel and animal feed sector.

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.

palm oil Palm oil

The distribution and Market of Oil Palm:

The oil palm plantation mainly distributed in altitude below 700 meters and latitude between 10 degrees north latitude and south of the equator, and with a rainfall of1600 mm per year at least. Nowadays, there are about 10 million hectares of oil palm planted around the world, located mainly in Malaysia and Indonesia.

Palm oil is a popular kind of vegetable oil which is applied in both food and non-food industries. 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 processing business. Below is the Top 10 consuming nations of palm oils, accounted for 37.48 million tonnes, 66% of global consumption.

India: 8.3 million tonnes

Indonesia: 7.9 million tonnes

EU: 6.6 million tonnes

China: 6.2 million tonnes

Malaysia: 2.3 million tonnes

Pakistan: 2.1 million tonnes

Nigeria: 1.8 million tonnes

Thailand: 1.5 million tonnes

Bangladesh: 1.2 million tonnes

USA: 1.2 million tonnes

How to produce red palm oil?

After be harvested, the Fresh Fruit Bunches (FFB) will be transported to a palm oil mill. The oil contained in the flesh of each individual fruit on the bunch will be extracted out in the palm oil mill by palm oil processing plant. After palm oil extraction process, the palm kernel will be recovered and sent to palm kernel oil mill plant for manufacturing palm kernel oil. If you want to get refined palm oil and palm kernel oil, you can send crude palm oil and crude palm kernel oil to palm oil refinery plant and palm kernel oil refinery plant to refine. After that you can get RBD Palm Oil and RBD Palm Kernel Oil. But if you want to get palm olein and palm stearin (palm kernel olein and palm kernel stearin) ,you need to buy palm oil fractionation plant. The main equipment in palm oil production line as follows:

1.palm oil extraction machine;

2, palm kernel oil recovery machine;

3, palm kernel oil processing plant;

4, palm oil refinery plant (palm kernel oil refinery plant);

5, palm oil fractionation plant( palm kernel oil fractionation plant)

6, so on.....

palm oil production line Palm oil production line

palm kernel oil production line Palm kernel oil production line

Palm kernel oil production lineFor more information about palm oil industry , please fell free to contact us!


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