Demand For Palm Oil Research Articles

Demand for Palm Oil in the Balkans using Autoregressive Distributed Lag (ARDL)

Demand for edible oils and fats in the Balkan countries shows an increasing trend, including the demand for palm oil. Imports of palm oil for this region are mainly sourced directly from major producing countries, namely Indonesia and Malaysia. The Balkan countries also import palm oil from non-palm oil producing countries like the Netherlands, Germany and Italy. This study differs from existing studies on palm oil demand as it focuses on palm oil demand specifically in the 4 countries of the Balkan Region. Therefore, the quarterly data from from 2008 to 2016 are used to examine the factors affecting demand for palm oil in the Balkans using, this study used autoregressive distributed lag (ARDL). The result of the bound test from 4 Balkan countries only in 3 countries shows that the studied variables and palm oil demand there is a long-run relationship. The countries are Bulgaria, Croatia and Greece. This study also shows that GDP, population and palm oil price have significant influence on the demand for palm oil in the Balkan countries.

India in the Oil Palm Era: Describing India’s Dependence on Palm Oil, Recommendations for Sustainable Production, and Opportunities to Become an Influential Consumer

India is the largest consumer and importer of palm oil in the world. Its demand for palm oil is expected to double by 2030, which cannot be sustained just by increasing the import quantity, as it would be exporting its biodiversity issues to the supplying countries. We support the Government of India’s views to expand oil palm cultivation in India. However, an aggressive push toward domestic oil palm cultivation at the expense of biodiversity is currently underway. Unsustainable expansion of oil palm cultivation in India with short-term economic goals will lead to both biodiversity and social issues. In this article, we outline India's position in the production and trade of palm oil. By reviewing the situation of Malaysia and Indonesia, we also propose necessary, workable solutions for sustainable oil palm cultivation in India. We recommend working within an integrative framework involving scientific research, social measures, and political actions: the ‘SSP framework.’ We believe that such an integrated approach is critical to achieve global sustainability targets from Paris Agreement at COP21 and 2015–2030 United Nation Sustainable Development Goals.

Landscape Ecological Changes and Livelihood Dilemma of the Rural Household around the Oil Palm Plantation

The pressure of global market demand for palm oil is driving a massive expansion of oil palm plantations in Indonesia. Although it provides benefits in economic terms, it also has social and environmental impacts. The impact is in the form of changes in the ecological landscape, conversion of agricultural land, rural household livelihood systems, reduced biodiversity, deformation, plant monoculturalization, and even a monostructuring of livelihood. This study aimed to provide an overview of changes in the ecological landscape that resulted from the expansion of oil palm plantations and the socio-economic impact of the expansion of oil palm plantations on farmers' household livelihood systems. The study was conducted in West Sulawesi, Indonesia. This study uses the livelihood survey method by selecting 30 farmer households selected by random sampling. The results of the study found the fact that oil palm plantations seemed to provide welfare for rural households, but what happened was a vulnerability and high livelihood dependence on income from the wages of oil palm plantations. The expansion of oil palm plantations has created the integration and dependence of rural economies on the global political economy of oil palm, but at risk to even undergoing household livelihood dilemmas due to the two villages’ deliberate divergence of livelihoods because of shifting ecosystems now leading by palm oil commodities.

AN ANALYSIS OF PALM OIL PRICE FLUCTUATION IN THE FOREIGN MARKET

This research is aimed at investigating the impact of price and non-price on the demand for palm oil, supply and stock of palm oil in a foreign market. The data employed in this research were time series data. The analysis used the model of demand, supply and stock of palm oil. Full simultaneity in a dynamic model with inventories was adopted from Nerlove (1956). This research has shown that the supply of palm oil in the foreign market had a positive influence on the price, the area and the supply in previous years while the response of the demand was negative. On the other hand, the income and the demand in the previous years had a positive influence. The palm oil stock was influenced by the quantity in the previous years and international price.

Maximizing Crude Palm Oil Production in Malaysia: A Search for an Optimal Policy Using System Dynamics and Genetic Algorithm Approach

Palm oil industry in Malaysia is experiencing a stagnant crude palm oil (CPO) production and has been lagging as compared to Indonesia. This situation can jeopardize Malaysia’s position in world palm oil marker since Malaysia needed to secure its export revenue and fulfilling increasing demand of palm oil both locally and globally in the future. The factors that influence the CPO production are many. Among others are the scarcity of plantation area, labour shortage, and demand from palm-based biodiesel industry. This study presents an integrated of system dynamics (SD) and genetic algorithm (GA) (SD-GA) model to find the optimal policy to improve CPO production in Malaysian palm oil industry. SD offers the platform to evaluate and to test policy while GA facilitate the process of searching the best solutions to achieve the maximum CPO production in 2050. The proposed model has produced five optimal values for five policy variables namely average replanting rate, mechanization adoption rate, and biodiesel mandate in transportation, industrial and other sectors respectively. The best solution suggested that CPO replanting rate need to be increased to 251743.5 hectares per year to decrease the accumulation of ageing area by optimizing all these policy variables. This study is expected to help policy makers in designing related policies and drawing the road map towards improving CPO production in Malaysian palm oil industry.

Kecepatan Tumbuh Benih Kelapa Sawit (Elaeis guineensis Jacq.) pada Dua Tempat Pengambilan Tanah Rawa Lebak

Along with the increasing demand for palm oil has the world's population, it is necessary to think about efforts to increase the quality and quantity of palm oil production. One of the factors such as planting material in the form of seeds, it is necessary to act technical culture or good seed treatment. Oil palm seedlings can be done in two stages: initial seeding (prenursery) and moved at the age of 2.5-3 months when they fulfill the criteria nursery ready to move to the main (main nursery). This study aims to (i) determine the speed of growth of oil palm seeds and, (ii) obtain the best type of soil for growing speed of oil palm seeds in two places making swampy marshland. The research was conducted in the Pangkalan Sari Village, Sungai Pandan Sub-district, Hulu Sungai Utara Regency in July-August 2013, using a completely randomized design (CRD) with a single factor. Factors studied were two lebak wetland of origin of uptake (T) as much as two levels and repeated nine times. The results showed that the two treatments had no effect lebak wetlands on many shoots observation variables age 14 and 28 days after seeding(DAS), the amount of leafage of 14 DAS, seedling height 14 DAS, and significant observations on many variables shoots the age of 42 DAS, number of leaves age 28 and 42 DAS, and a very significant effect on seedling height observation variables age 28 and 42 DAS.

Assessment of ALOS-2 PALSAR-2L-band and Sentinel-1 C-band SAR backscatter for discriminating between large-scale oil palm plantations and smallholdings on tropical peatlands

Oil palm agriculture is rapidly expanding across the tropics, particularly on peatlands to meet increasing global demand for palm oil based products. Oil palm production systems can be divided into two broad categories of management system: large-scale monoculture plantations and smallholdings. Both categories are separated by large differences in environmental and social impacts. These oil palm production systems are often characterized by different agricultural practices and vegetation characteristics and therefore land cover. To date, there are no examples of radar remote sensing studies in oil palm production landscapes assessing differences between large-scale plantations and smallholdings. Here, we investigate whether these management systems have distinct radar signatures that can be identified through backscattering intensity using ALOS (Synthetic Aperture Radar) – PALSAR (Phased Array L-band Synthetic Aperture Radar) L-band and Sentinel-1 C-band Synthetic Aperture Radar (SAR). SAR has been shown to be superior to other remote sensing sensors in the tropics for monitoring oil palm expansion due to its all-weather capabilities. In this study we measured backscattered intensity of 196 plots planted with oil palm that were established on peatland in Peninsular Malaysia. Our results indicated that backscattered intensity was significantly influenced by the management systems. We found that canopy and soil moisture was greater in smallholdings compared to large-scale plantations. With the exception of HV polarization method, season had significant effect on backscattered intensity. Irrespective of management systems, canopy and soil moisture was greater in wet months compared to dry months. Our findings suggest that ALOS-2-PALSAR-2L-band and Sentinel-1 C-band have great potential to discriminate oil palm production landscapes managed under different management systems. Further investigation is needed to determine whether the current findings are consistent for oil palm in mineral soils.

ARTICULATING AGENCY WITHIN SITES OF CONTESTATIONS IN HARAPAN RAINFOREST: PROBLEMATIZING PALM OIL PLANTATIONS IN JAMBI, INDONESIA

The increasing global demand for palm oil due to the global new orientation on bio-fuels has affected the rapid expansion of the palm oil plantations in Indonesia. Previous research findings have shown there are multiple actors involved in the palm oil plantations; however, few have taken into account the social interactions between these actors in relation to specificity of the local context. This article problematize how the actors and networks intertwine with one another as sites of contestations and also negotiations. The main problem to be investigated is how these actors articulate their agencies within the socio-economic and cultural life of the communities, who live around forest conservation in Jambi province, namely Harapan Rainforest. Research findings show that the network of actors is problematic in a sense that each actor‟s agency is mostly overshadowed by their own “politics.” Furthermore, from the ethnographic data, the locals in Jambi perceive and negotiate with this situation in their own framework of social network and cultural capital.

Właściwości oleju palmowego i wpływ plantacji olejowca gwinejskiego (Elaeis guineensis Jacq.) na środowisko

W ostatnich dziesięcioleciach obserwowany jest znaczący wzrost produkcji oleju palmowego, szeroko wykorzystywanego w wielu gałęziach przemysłu, w tym: spożywczym, kosmetycznym i energetycznym. Surowiec ten pozyskiwany jest z owoców olejowca gwinejskiego (Elaeis guineensis Jacq.), którego plantacje zakładane są główniena obszarach tropikalnych Azji Południowo-Wschodniej. W kolejnych latach prognozowany jest dalszy wzrost zapotrzebowania na olej palmowy. Tymczasem niejasny pozostaje wpływ plantacji olejowca gwinejskiego na środowisko naturalne, w tym m.in. na wylesianie obszarów tropikalnych i różnorodność biologiczną oraz spożywania oleju palmowego na zdrowie człowieka. W pracy podjęto zatem próbę kompleksowego omówienia wymienionych problemów. Ostateczna ocena oddziaływania produkcji olejowca gwinejskiego jest złożona, gdyż musi uwzględniać, nie tylko aspekty środowiskowe, ale i kwestie etyczne (jak globalny wzrost zapotrzebowania na żywność, czy zapewnienie źródeł utrzymania lokalnej społeczności). Natomiast rozpatrując wpływ spożywania oleju palmowego na zdrowie człowieka, należy wziąć uwagę, m.in. różnice w składzie i wartości odżywczej surowego, rafinowanego i poddanego procesom modyfikacji oleju palmowego.

Post treatment of palm oil mill effluent using electro-coagulation-peroxidation (ECP) technique

Global demand of palm oil and palm oil derivatives lead to generate a huge quantity of palm oil mill effluent (POME). A post treatment is an essential step to a polish biologically treated POME before final discharge. In this study, the performance of employing hydrogen peroxide to enhance electro coagulation process in polishing POME was investigated. Operational variables including current density, contact time, initial pH, and H2O2 dosage were applied and optimized using Response Surface Methodology (RSM). An optimized condition of 40.21 mA/cm2 of current density, 45.67 min of contact time, initial pH of 4.4 and 0.5 g/L of H2O2 was able to achieve removal of 71.3%, 96.8%, and 100% for Chemical Oxygen Demand (COD), colour, and Total Suspended Solid (TSS), respectively. The parameters of polished POME were found below discharge limits of 1000 mg/L and 400 mg/L for COD and TSS, respectively. The biodegradability of POME increased from 0.037 to 0.14 by electro-coagulation-peroxidation (ECP) process. Compared with electrocoagulation alone, employing ECP in polishing POME can reduce current density by 28.2% and reaction time by 30%.

Determinants of global palm oil demand: A gravity approach

This paper reviews the determinants of global palm oil trade using the gravity model. This model helps to explain how the shift in demand for palm oil has affected trade flows among trading partners. We decompose the effects of growth in the regional markets, location, and the reduction in the palm oil price relative to other edible oils, on palm oil exports. We find that standard variables suggested by the gravity literature, such as the growth of GDP, GDP per capita, and location, are indeed important determinants of palm oil trade. Given the preceding results, we simulate whether the economic growth of Indonesia’s trading partners can explain the growth in palm oil export demand from Indonesia. The simulation results for top ten Indonesia’s trading partners suggest that the growth of palm oil imports is a great deal higher than the growth of income for all countries.

Sustainability of African Oil Palm Agriculture in a Changing Climatic Environment

Non-governmental organizations often claim that those countries growing oil palm are responsible for deforestation, biodiversity loss, and climate change. Nevertheless, demand for palm oil has kept on growing in Africa and worldwide due to the ever-growing populations and to the high demand for palm oil numerous food and non-food uses. In 2018, African demands for oils and fats are estimated at 30.64 million tonnes. Assuming that 50% of the continent’s demands were to be satisfied with palm oil, mature oil palm areas would have to be 7.547 million hectares at the current palm oil yield of 2.03 t/ha. Growing demand for palm oil will result in expansion of oil palm plantation in new forest areas. In Africa, further challenges facing oil palm agriculture are poor yields of oil palm resulting from (i) limited technical knowhow on the establishment and management of plantations, (ii) a marked dry season of 2-5 months per year, and (iii) unambitious oil palm development programmes. Fortunately, oil palm ranked first in oil production per unit area with a high theoretical oil yield potential (18 t/ha). High-yield oil palm agriculture could be harnessed to meet the growing demand for food without destroying more natural habitat. In 2016, 609 000 ha would have been enough for the 9 recorded African oil palm-growing countries to produce their 2.434 million tonnes of palm oil production at 4 t/ha against 1.198 million hectares effectively harvested with an average yield of 2.031 t/ha. High-yield on-farm activities are recommended, from the site selection to the harvest of ripe fresh fruit bunch to (i) ensure economic and environmental sustainability of oil palm fields, (ii) consolidate the African oil palm sector, and (iii) prepare its shift to an African oil palm industry, an ambitious vision on which sustainability of the palm oil business depends.

Changes in soil organic carbon stocks after conversion from forest to oil palm plantations in Malaysian Borneo

The continuous rise in the global demand for palm oil has resulted in large-scale expansion of industrial oil palm plantations—largely at the expense of primary and secondary forests. The potentially negative environmental impacts of these conversions have given rise to closer scrutiny. However, empirical data on the effects of conversion of forests to industrial oil palm plantations on soil organic carbon (SOC) stocks is scarce and patchy. We evaluated the changes in SOC stocks after conversion of tropical forest into oil palm plantations over the first and second rotation period in Sarawak, Malaysian Borneo. Soil samples were collected from three age classes of oil palm plantations converted from forest (49, 39 and 29 years ago respectively) with three replicate sites and four adjacent primary forest sites as reference. In each site under oil palm, the three management zones, namely weeded circle (WC), frond stacks (FS), and between palm (BP), were sampled separately. All soil samples were collected from five soil layers (0–5, 5–15, 15–30, 30–50 and 50–70 cm). Samples were analysed for SOC concentration, soil bulk density, pH and soil texture. Results showed SOC stocks declined by 42%, 24% and 18% after 29, 39 and 49 years of conversion respectively. Significant differences in SOC stocks were found among different management zones in the oil palm plantations, and the trend was similar for all age classes: FS > WC > BP, demonstrating the necessity of considering within-plantation variability when assessing soil C stocks. The largest differences between SOC stocks of the reference forest and converted plantations were found in the topsoil (0–15 cm depth) but differences were also found in the subsoil (>30 cm). Our results will contribute towards future modelling and life cycle accounting to calculate the carbon debt from the conversion of forest to oil palm plantations.

Coconut Palm Waste Product Innovation by Using Eco Friendly Technology

Karya Muda women group was one of the weaving group in Aceh Tamiang District produced various kinds of handicraft. The lack of technology for production equipment and lack of knowledge of natural coloring become an obstacle in developing of their product. The purpose of this activity was produced of weaving product made of stick cesspool from high quality palm oil and market demand by using ATBM and application of natural dyes to product. The activity conducted for five months started from April–August 2017. The method used discussion and active participatory from beneficiaries group by applying adult learning. The result shown that local government of Aceh Tamiang, Paya Bedi Village Government and Karya Muda women group was able to produced various kinds of handicraft production by using palm oil cesspool stick and interested by markets such as women hand bag, tissue box, stationery box, and laptop bag whereas prior that the group were able to produced various kinds of handycraft manually such as plate, broom, vas, and others. On the other hand, the group had been succeed to diversification of products from hand made handycraft to be weaving products.

Yield gap analysis and entry points for improving productivity on large oil palm plantations and smallholder farms in Ghana

Oil palm production must increase in Ghana to meet the increasing demand for palm oil and avoid costly imports. Although maximum fruit bunch (FB) yields of >20 t ha−1 yr−1 are achievable, average FB yields in Ghana are only 7 t ha−1 yr−1. Despite the pressing need to increase palm oil production and improve yields, knowledge of the underlying causes of poor yields in Ghana is lacking. Closing yield gaps in existing plantings in smallholdings and plantations offers great opportunities to increase oil production without area expansion, thus sparing land for other uses. This study sought to understand the magnitude and underlying causes of yield gaps in plantation and smallholder oil palm production systems in Ghana based on a detailed characterization of management practices and yield measurements over a two-year period. Using a boundary line analysis, the water-limited yield (Yw) over a planting cycle was defined as about 21 t ha−1 yr−1 FB, with yield gaps of 15.4 t ha−1 yr−1 FB at smallholder farms and 9.8 t ha−1 yr−1 FB at plantations. Poor management practices, including incomplete crop recovery (i.e., harvesting all suitable crop) and inadequate agronomic management were the main factors contributing to these yield gaps. Productivity losses were further exacerbated by low oil extraction rates by small-scale processors of 12% as compared to 21% by the large-scale processors. The potential losses in annual crude palm oil (CPO) during the crop plateau yield phase therefore exceed 5 and 3 t ha−1 yr−1 for small-scale and large-scale production systems respectively. Investment to reduce yield gaps by appropriate agronomic and yield recovery practices across all production systems, while improving access of smallholder producers to more efficient oil palm processing facilities, can make a significant contribution to closing the supply gap for palm oil in Ghana. The impact of such investments on large-scale plantations could result in a doubling of CPO production. Smallholder farmers could benefit the most with a fourteen-fold increase in CPO production and economic gains of >1 billion US$.

Evaluating the palm oil demand in Indonesia: production trends, yields, and emerging issues

ABSTRACTThis paper investigates the development of domestic and international demand for Indonesian palm oil, in line with national biofuel mandates and established export markets. Domestic demand for palm oil for (i) achieving biodiesel targets and (ii) meeting food and industrial uses will reach 20 million tonnes by 2025, equivalent to 61% of Indonesian production in 2014. Thus, it is possible for Indonesia to be self-sufficient, reaching the biodiesel targets without increasing plantation areas. However, to meet both domestic and international demand, a total 51 million tonnes of crude palm oil will be needed in 2025. This requires additional land of up to 6 million hectares with current yields. The expansion of oil palm plantations in Indonesia has led to debates related to deforestation, threatened biodiversity, and greenhouse gas emissions. We show that increasing agricultural yields could serve the purpose, benefiting biodiesel production while reducing the need for new land. Therefore, we recommend that the ambitious Indonesian biodiesel mandates are pursued in combination with a strategy for increased productivity in palm oil production, utilization of degraded land to contain greenhouse gas emissions, and use of palm oil biomass residues for energy production.

Potential of energy recovery from an integrated palm oil mill with biogas power plant

The Malaysian palm oil industry has made significant contribution to the country’s gross domestic product (GDP) due to the increasing global demand of palm oil over the past decades. However, it is undoubtedly a sector that consumes enormous energy and water. With the uprising concerns of the energy resource shortage and global warming, several green technology policies such as the feed-in-tariff policy have been implemented by government to accelerate the sustainable development of palm oil industry in Malaysia. The establishment of feed-in-tariff has successfully increased the number of palm oil mills that are completed with biogas facilities. Recent studies indicate that there are significant amounts of waste heat released from biogas power plant are utilisable as heat source for palm oil mill processes. As an initiative to develop the research of optimizing the energy efficiency of integrated palm oil mill with the biogas power plant, this study is directed toward the analysis of energy balance and material balance of an integrated palm oil mill with biogas power plant which covered both the palm oil milling process energy demand and the biogas power plant waste heat potential analysis. An integrated palm oil mill with biogas power plant running with 120 t/h fresh fruit bunches input was evaluated. The result indicates that there were a total of 3491.66 kW waste heat which corresponded to 46.82 % of the total biogas engine energy input could be recovered for process heating. By fully utilising the biogas plant waste heat as process heating for palm oil mill processes, it is estimated that up to 9.46 % of the total energy supplied could be saved.

Landscapes and resistance in the African diaspora: Five centuries of palm oil on Bahia's Dendê Coast

This paper examines the long-term development of palm oil landscapes in the northeastern Brazilian state of Bahia. In contrast to the agroindustrial monocultures that dominate global production, palm oil in Bahia emerges from a biodiverse cultural landscape constructed through five centuries of transatlantic socioecological exchange. Native to West Africa, African oil palms (Elaeis guineensis Jacq.) diffused to the New World during colonial overseas expansion, becoming established in Bahia by the seventeenth century. There the palms helped form a complex cultural landscape that continues to supply local alimentary and spiritual demands for palm oil—an essential resource in many Afro-Brazilian cultural expressions. Extending approximately 70 km south of the capital Salvador, Bahia's traditional palm oil landscapes are now officially dubbed the Dendê Coast (Costa do Dendê), following the Kimbundu Bantu-inspired Afro-Brazilian term for palm oil. Historically colonial officials and elite Brazilians showed little interest in Bahia's palm oil economy, effectively conceding it to Afro-descendants until the mid-twentieth century. Since then, a series of modern development interventions have sought to transform the complex, biodiverse landscapes of the Dendê Coast into a legible oil palm monoculture based on an improved hybrid variety. Yet despite recurrent top-down efforts, emergent or “subspontaneous” groves and traditional polycultural landscapes continue to dominate land use in the region. Drawing on ethnography, landscape interpretations, archives, and geospatial analysis, this paper analyzes the historical development of Bahia's palm oil economy, recounting five centuries of socioecological changes on the Dendê Coast. The study integrates recent geographical treatments of the African diaspora with theories of complexity to comprehend the ongoing proliferation of Bahia's traditional palm oil landscapes despite top-down promotion of modern monocultures.

PENURUNAN PAJAK EKSPOR DAN DAMPAKNYA TERHADAP EKSPOR MINYAK KELAPA SAWIT INDONESIA KE CINA (PENDEKATAN ERROR CORRECTION MODEL)

The palm oil Industry is an important sector in the Indonesian economiy as it is one of the country’s major export earners as well as food source for her population.Indonesia is the world second largest producer of palm oil after Malaysia, accounting for about 34% OF The world production in the year 2006. Indonesia is also the largest consumer of palm oil in the developing economies, in 2006. Indonesia consumed a total of 5.5 mn tonnes of palm oil. Of this amount 76.75% is comprised of frying oil. About 55% of the production is exported in the form of crude palm oil mainly to Asian countries primarily to India and China and Eruropean countries. Debate on Indonesia’s palm oil policy was stimulated by the sharp increase in cooking oil prices in 1994-1995 which resulted in the introduction of export tax rate on palm oil in order to maintain a certain level of domestic consumption.Using annual data for the period 1969-2006, an econometric approach mainly the error correction model. Was employed in this study This paper examines the impacts of reduction in export duty onthe import demand of Indonesian palm oil to China. The findings indicate that the quantity of palm oil exported to China is significantly influenced by changes in the soybean oil price, world palm oil price, Industrial Production Index (IPI) exchange rate and lagged of export demand of Indonesian palm oil to China by one year with the elasticity of 1,49, 1.47,0.24, 0.59, and 0.79, respectively. The coefficients for long run variables presented by the ECM are jointly not equal to zero.This result suggests that as a group, the long run variable (ECM) have influenced the changes in the export demand to China which is indicated by the significance of the coefficient. The simulation results suggest that the direct impact of reduction of export duty would increase the quantity exported to China. The Indonesia export to China from 95.36 thousand tones to 118,23 thousand tones.

Questioning the sustainable palm oil demand: case study from French-Indonesia supply chain

Sustainable palm oil has been widely debated. Consuming countries insist certified sustainable produces palm oil, but in fact the absorption of the certified palm oil is still less than 60%. This raise questions about the sustainable palm oil demand. In this study, such a condition will be analysed in French-Indonesia supply chain case. Using monthly and quarterly data from 2010 to 2016 with Autoregressive Distributed Lag (ARDL) approach and Error Correction Model, demand influencing factors and price integration in each market of the supply chain is estimated. Two scenarios namely re-export and direct export models are considered in the Error Correction Model. The results show that France Gross Domestic Product, prices of France palm oil import from Indonesia, Malaysia, and Germany, and price of France groundnut import significantly influence the France palm oil import volume from Indonesia. Prices in each market along palm oil re-export France-Indonesia supply chain are co-integrated and converge towards long-run equilibrium, but not in the direct export supply chain. This leads to a conclusion that France market preferences in specific and EU market preferences in general need to be considered by Indonesian palm oil decision makers.