PLANTATION

PALM OIL

(Elaeis guineensis) is a tropical edible vegetable oil derived from both the pulp (mesocarp) of the palm fruit, yielding crude palm oil (CPO), and from the palm’s fruit kernel (endosperm), producing palm kernel oil (PKO); oils that differ in quality, density, composition, and end application.

Palm oil, which we will refer to herein as CPO, accounts for 35% of the world’s vegetable oil market. The oil palm tree grows under strict agroecological conditions only found in tropical regions that fall within 10 degrees north or south of the equator. These regions must be characterized by abundant rainfall throughout the year, given the perennial profile of the crop, with minimum rainfall of approximately 325 litres per day per planted tree.

THE MOST PRODUCTIVE OF ALL VEGETABLE OIL CROPS

The historical success of oil palm can be attributed principally to its intrinsic qualities. First, it is the most productive of all the vegetable oil crops globally, yielding 7x and 11x more oil per hectare than rapeseed and soybean, respectively, which are the following most productive oils.

Palm oil is the most price competitive of the global edible/vegetable oils, historically trading at 0.85x the price of soybean oil and 0.9x the price of coconut oil (PKO). Recently, the affordability of palm oil has driven its continued demand in high-consuming emerging markets such as India and China and across Africa—an end market that is fast becoming a material consumer of the commodity on the back of its explosive demographic growth.

PLANTATION

PALM OIL

THE MOST PRODUCTIVE OF ALL VEGETABLE OIL CROPS

LISTINGS

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