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The Palm Oil Industry.

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Presentation on theme: "The Palm Oil Industry."— Presentation transcript:

1 The Palm Oil Industry

2 What is Palm Oil? Palm oil is an extremely versatile vegetable oil collected from palm trees and used as a raw material in food and non-food industries. It is used in cooking by many locals in developing countries. Because of its cheap production costs and high levels of productivity, palm oil is used all over the globe and offers a far greater yield than most other oils. Palm oil plantations can be found in Africa, Asia and Latin America. Forest degradation takes place in order to make space for palm oil plantations. Consumer retail food and snack manufacturers Personal care and cosmetics (mainly palm kernel oil) Biofuel and energy  Animal feed (palm kernel expeller) Pharmaceutical  Industrial  Foodservice/service industry 

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4 About Palm Oil Trees reach an average of 20 meters, with an average lifespan of 20 years. Trees start to produce FFB’s after 3 years. Each individual piece of fruit contains 50% oil. Palm oil can be harvested all year round. Productivity per tree can reach 10 tones of fresh fruit per hectare. Oil can also be extracted from the kernel On average 3.9 tones of Crude palm oil and 0.5 tones of palm kernel oil can be extracted per ha. Animal feed, paper and fertilizer can be made from the remaining fiber. Palm oil requires 10 x less land than other oil–producing crops. Palm oil is GM free. FFB- Fresh fruit bunch

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7 History of Palm Oil Mid 15th Century - Palm oil recorded as food source for European travellers to West Africa 16-17th Century – Red Palm oil used to develop trade network supplying ships of the Atlantic slave trade. 18th Century – British Industrial Revolution created demand for palm oil as lubricant for machinery and candle-making. Supplied by West Africa. Early 19th Century – European run plantations set up in Central Africa and Southern Asia. 1902 – German invest in what is know the most popularly used breed of palm oil in large plantations. 1910 – Henry Darby and William Sime introduce palm oil to Malaysia. four to ten times more efficient than soy, rapeseed (canola), or sunflower.

8 3 Main Products of Palm Oil
CPO – Crude Palm Oil PKO – Palm Kernel Oil PKE – Palm Kernel Expeller Other names: vegetable Oil, Vegetable Fat, Palm Kernel, Palm Kernel Oil, Palm Fruit Oil, Palmate, Palmitate, Palm olein, Glyceryl, Stearate, Stearic Acid, Elaeis Guineensis, Palmitic Acid, Palm Stearine, Palmitoyl Oxostearamide, Palmitoyl Tetrapeptide-3, Sodium Laureth Sulfate, Sodium Lauryl Sulfate, Sodium Kernelate, Sodium Palm Kernelate, Sodium Lauryl Lactylate/Sulphate, Hydrated Palm Glycerides, Etyl Palmitate, Octyl Palmitate, Palmityl Alcohol, Laureth-7, Steareth-2, Cocamide MEA (fatty acid-derived) Cocamiede DEA (fatty acid derived), Stearamidopropyldimethylamine, Cetyltrimethylammonium chloride, Isopropylmyristate, Caprylic/capric Trigylceride, Fatty Isethionates (SCI),  Alkylpolyglycoside (APG), Laurylamine oxide

9 Industries Using Palm Oil
50% of products on supermarket shelves contain palm oil. An estimated million hectares of palm oil plantations across the equator, producing a total of 56.2 million tones of palm oil in % of the global vegetable oil demand. Top 3 producing nations Indonesia – 28.4 Million tones Malaysia – 19.2 Million tones Thailand – 1.9 Million tones Since 1980, palm oil production has increased tenfold with estimates that production will increase 50% by 2050.

10 Impacts of Palm Oil Deforestation
Large-scale conversion of tropical has a devastating impact on a variety of flora and fauna. It leads to an increase in human-wildlife conflict as populations of large animals are squeezed into increasingly isolated fragments of natural habitat. (Therefore loss of wildlife and plant species, some endemic). The habitats destroyed frequently contain rare and endangered species or serve as wildlife corridors between areas of genetic diversity. This even affects areas of national park. Forty-three percent of Tesso Nilo National Park in Sumatra—which was established to provide habitat for the endangered Sumatran Tiger—has now been overrun with illegal palm oil plantings. In 1990 there were around 315,000 orangutans. Today it's estimated that fewer than 50,000 exist in the wild, split into small groups with little chance of long-term survival. The orangutan is only one of a number of species facing extinction as a result of deforestation. While palm oil is not the only cause of deforestation, it does play its part.  86%of the world's oil palm trees are grown on a few islands in Malaysia and Indonesia - islands with the most bio-diverse tropical forests found on Earth.

11 Pollution Air Pollution from burning areas of land. Release of carbon dioxide into the atmosphere. Soil and water Pollution from effluent causes freshwater pollution affecting the biodiversity and health of local people. Soil Erosion from clearance of land for plantations or planting trees in inappropriate arrangements. Climate change from greenhouse gas emissions. Due to its high deforestation rate, Indonesia is the third-largest global emitter of greenhouse gasses. Air pollution - Fires in peat areas are particularly difficult to put out. The smoke and haze from these blazes have health consequences throughout Southeast Asia. Water Pollution- A palm oil mill generates 2.5 metric tons of effluent for every metric ton of palm oil it produces. While oil palm plantations are not large users of pesticides and fertilizers overall, the Indiscriminate application of these materials can pollute surface and groundwater sources. Soil Erosion - The main cause of erosion is the planting of oil palms on steep slopes. Erosion causes increased flooding and silt deposits in rivers and ports. Eroded areas require more fertilizer and other inputs, including repair of roads and other infrastructure. Climate change - The practice of draining and converting tropical peat forests in Indonesia is particularly damaging, as these "carbon sinks" store more carbon per unit area than any other ecosystem in the world.

12 Social Issues While the global palm oil market creates an opportunity to bring many communities out of poverty, the race for land rights has left many locals on the losing team. Reports of displaced communities and illegal land grabs are not uncommon. The resulting conflicts, loss of income and dependence on large plantations have had a significant impact of the social welfare of many. conflict between companies, governments and communities over land tenure and usage rights, as well as numerous labor and human rights abuses including forced and child labor.

13 What is Sustainable Palm Oil?
Certified sustainable palm oil is produced by plantations that agree adhere to a set of criteria and standards. These planation's will be independently audited to comply with globally agreed environmental standards devised by the RSPO.

14 Why Do We Need it?

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16 Why Should We Use it?

17 RSPO The RSPO (Roundtable on Sustainable Palm Oil) is an international, multi-stakeholder forum set up Promotes production and use of sustainable palm oil for ‘people, the planet and prosperity’. 40% of palm oil producers are RSPO members Over 2,000 members – 70 countries 2008 – certification began 2013 – principles and criteria last revised Reviewed every 5 years managed by a member-elected board of governors comprising 16 members, designated by the General Assembly for a period of two years.  as well as many product manufacturers, retailers, environmental and social non-governmental organisations (NGOs).

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19 The 8 Criteria

20 References http://www.worldwildlife.org/industries/palm-oil


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