Demand For Palm Oil Research Articles

Biophysical and socioeconomic drivers of oil palm expansion in Indonesia

Indonesia has been the largest supplier of palm oil since 2007, and now supplies around 56% of the global market. While the existing literature has paid serious attention to the diverse impacts of oil palm plantation on socioeconomic factors and the environment, less is known about the joint role of biophysical and socioeconomic factors in shaping the temporal and spatial dynamics of oil palm expansion. This research investigates how the benefits and costs of converting other land use/ land cover (LULC) types to oil palm plantation affects these expansion patterns. We employ a spatial panel modeling approach to assess the contributions of biophysical and socioeconomic driving factors. Our modeling focuses on Sumatra and Kalimantan, two islands which have accounted for more than 90% of oil palm expansion in Indonesia since 1990, with Sumatra holding the majority of the country’s plantations, and Kalimantan having the highest growth rate since 2000. The results show that the expansion in Kalimantan, which has been strongly stimulated by the export value of palm oil products, has occurred in areas with better biophysical suitability and infrastructure accessibility, following the ‘pecking order’ sequence, whereby more productive areas are already occupied by existing agriculture and plantations, and avoiding areas with high environmental values or socioeconomic costs. As demand for palm oil continues to grow, and land resources become more limited, the expansion in Kalimantan will tend towards the dynamics observed in Sumatra, with plantation expanding into remote and fertile areas with high conversion costs or legal barriers. Bare ground seems to have served as a clearing-up tactic to meet the procedural requirements of oil palm plantation for sustainable development. This research facilitates the improved projection of potential areas liable to future expansion, and the development of strategies to manage the leading drivers of LULC in Indonesia.

Performance of Oil Palm Frond Fiber as Filtration Material in Palm Oil Mill Effluent Treatment

Over the years, oil palm waste management has always been a severe issue for the palm oil industry. The growing demand for palm oil contributes to the rapid raising of biomass waste and effluent discharge. This study aims to use oil palm frond fibre (OPF) as media filter material to treat wastewater generated by the palm oil mill itself; known as palm oil mill effluent (POME). POME contains high chemical oxygen demand (COD) and is highly acidic, which is very harmful to the environment if discharged directly to the watercourse without proper treatment. OPF fibre is selected due to its fascinating properties such as high cellulase content, readily available, biodegradable and non-toxic. Several arrays of experiments are conducted to assess the effectiveness of OPF in POME pollutants removal. The parameters to determine the performance of pollutant reduction of this study are COD, biochemical oxygen demand (BOD), total suspended solids (TSS), and pH. OPF filters are arranged in a different ratio, particle size and even paired with other filter media materials, such as activated carbon and sand to determine the best treatment result. Findings indicate that the OPF filter with a ratio of 4:3:3 fine, medium and coarse fibres yield the best results, which are 26.44% BOD removal, 55.21% COD removal, 98% TSS removal and pH of 5.77. The findings show that the OPF filter is significant in treating POME. OPF as filtration material could be a sustainable means in wastewater treatment since it is biodegradable and readily available in oil palm plantation as agricultural waste. The outcome of this study contributes to waste management and wastewater treatment. For future studies, OPF could be coupled with other treatment methods to achieve higher treatment performance to contribute to environmental sustainability.

Quality control of palm oil crude (CPO) using six sigma method in PT Karya Tanah Subur West Aceh regency

The rapid world demand for palm oil shows an increasing tendency towards product consumption in palm oil raw materials. PT. Karya Tanah Subur is a company engaged in processing fresh fruit bunches that produce palm oil and palm kernel. Six Sigma is a method used to provide solutions and find the cause of product defects by providing a proposed improvement in several stages. The results showed that the causes of CPO oil quality discrepancies were obtained in the cause-and-effect diagram analysis, namely factors of workers, production machinery, work methods, materials. While the defect per million opportunities in free fatty acid levels is 35,528, impurities content is 18,899 and water content is 14,719. Based on the value of the average sigma level for free fatty acid levels that is equal to 3.38, the level of impurities sigma value of 3.57 and the water content of the sigma value of 3.68 sigma. Proposed improvement of product defects mismatch with the 5W + 1H method, namely in free fatty acid levels, work system improvements in the sorting of fresh fruit bunches, provide training to operators in the selection of appropriate fruits while impurities by monitoring oil purification operators, machine maintenance cleaning periodically at the sorting station, periodic checking every hour, while the moisture content of the corrective action that must be taken is to supervise the sterilizer operator.

Improving Sustainability of Palm Oil Production by Increasing Oil Extraction Rate: a Review

Palm oil is the world’s most-produced vegetable oil that is serving as an important source of food and energy for many developing and underdeveloped countries. The global demand for palm oil will continue to rise, owing to the growing population and economy. Presently, tremendous efforts have been devoted to improving the sustainability of palm oil production. One strategy is to improve the oil extraction rate (OER) during the milling process. The average OER in Malaysia has remained stagnant between 19 and 21% for the past 40 years. Based on the world production of palm oil in 2018, approximately 3 million tonnes of additional palm oil can be produced globally with a 1% increase in OER. In this paper, the current status of the palm oil milling process and the factors affecting the OER are discussed. Subsequently, the methods to improve the OER are reviewed. Furthermore, the importance of producing good quality oil whilst improving the OER is emphasised. In conclusion, some of the methods reviewed have the potential for industrial application and they warrant further investigation.

Effect of electrode materials on the degradation of palm oil mill effluent by electro-oxidation process

In the recent decades, Malaysia has been known as the one of the palm oil producers and exporters. The increasing of the production and demand of palm oil tends to increase the Palm Oil Mill Effluent (POME). Undeniably, the conventional biological treatment has been implemented to reduce the organic matters but insufficient to satisfy the discharge standard by the local authority. Consequently, the biological treated POME has to be treated further to meet the stringent discharge standard. Hence, an advanced oxidation processes (AOPs), electro-oxidation process (EOP) has been applied to treat further the biologically treated POME. There are two stages in this study, EOP carried on with catalyst and electrode (Al and Fe). Therefore, the performance of EOP is evaluated by investigating the removal efficiency on the organic parameters like COD, colour, suspended solid and NH3-N. The operational parameters are the pH adjustment (pH 3, 5, 7 and 9), contact time ranging from 0 to 60 min and the dosage of catalyst (H2O2 and TiO2). The highest degradation of the parameters was obtained under the most acidic solution pH 3, with addition of TiO2 by using Al electrode. The percentages of removal are 96.58 % of colour, 98.74 % of SS and 84.85 % of COD.

Halting European Union soybean feed imports favours ruminants over pigs and poultry.

The European Union (EU) livestock sector relies on imported soybean as a feed source, but feeding soybean to animals leads to a loss of macronutrients compared to direct human consumption, and soybean production is associated with deforestation. Here we show that 75-82% of current EU animal fat and protein production could be sustained without soybean imports while avoiding increased use of cropland for feed production within the EU. Reduced soybean feed exports, mainly from South America, would free up 11-14 million hectares outside the EU, but indirect land-use changes would increase demand for palm oil produced in southeast Asia. Avoiding imported soybean feeds would result in reduced EU pork and poultry production; increased plant-based food consumption would be required to maintain the supply of essential nutrients for human diets. Optimizing livestock production to overcome dependency on imported soybean feed can reduce cropland demand in deforestation-prone areas while supporting the nutritional requirements of EU diets-but will require progressive policies targeting all aspects of the food system.

Trends in global dependency on the Indonesian palm oil and resultant environmental impacts

Rapid growth in the international demand for palm oil has triggered considerable global concern because oil palm plantations deteriorate the environment where they are developed, resulting in complex environmental impacts in the producer nations. Here, we illustrate the historical trends in the structure of Indonesian palm oil supply chains and how these have been affected by the final demand of other nations since 2000 by using the most recent dataset of global material flows of palm oil and a global input–output database. In addition, the combination of spatial land-use change with palm oil consumption along the supply chains illustrates the linkages between ultimate consumption and land-use changes due to the palm oil plantations. As a result, the major contributors to palm oil production in Indonesia were mostly stable, being India, China, Western Europe, the United States, and Japan. However, the contribution of Indonesia declined by 6% during 2000–2013, illustrating a possible shift towards palm oil being used for non-food demands, such as apparel and medicines. Building on consumption-based accounting schemes as demonstrated by this study are considered necessary to protect local ecosystems and society.

The effects of management practices on soil organic carbon stocks of oil palm plantations in Sumatra, Indonesia

The rapid increase in global production of and demand for palm oil has resulted in large-scale expansion of oil palm monoculture in the world's tropical regions, particularly in Indonesia. This expansion has led to the conversion of carbon-rich land-use types to oil palm plantations with a range of negative environmental impacts, including loss of carbon from aboveground biomass and soil. Sequestration of soil organic carbon (SOC) in existing oil palm plantations is an important strategy to limit carbon losses. The aim of this study was to investigate SOC stocks of oil palm plantations under different management systems. Soil samples were collected from three different management systems (best management practices (BMP), current management practices typical of large plantations (CMP) and smallholder management practices (SHMP)) in north Sumatra, Indonesia. Plantations were divided into four management zones that were sampled separately with four replicate profiles in the weeded circle, frond stack, harvesting path and interrow zones. All the soil samples were collected from five (0–5, 5–15, 15–30, 30–50 and 50–70 cm) soil depths. Soil samples were analysed for concentration of SOC, soil texture, soil bulk density and pH. Calculations of SOC stocks in the soils were undertaken according to the fixed-depth and equivalent soil mass approaches. Results showed that SOC stocks of plantations under BMP (68 t ha−1) were 31% and 18% higher than under CMP (57 t ha−1) and SHMP (46 t ha−1) respectively. In the BMP system, soils under the interrow zone that received enriched mulch and frond stack positions stored significantly more SOC than the harvesting path of the BMP system (77, 73 and 57 t ha−1 respectively). BMP also had a 33% higher fresh fruit bunch yield compared to the SHMP system. This study shows that residue incorporation or retention as a part of BMP could be an effective strategy for increasing SOC stocks of oil palm plantations and confirms that these management practices could improve yields from SHMP systems.

Multi-objective expansion analysis for sustainable agro-industrial value chains based on profit, carbon and water footprint

A sustainable agro-industrial value chain is essential for sustained food security. This requires optimised planning of operations and new expansions along the value chain. In this work, a fuzzy-based multi-objective approach is developed for planning sustainable new expansions of agriculture lands. Also, the expansion and capacity of post-harvest and production facilities and operations of logistics in the agro-industrial value chain are optimised. The model is a mixed-integer linear program (MILP) which takes profit, carbon footprint, and water footprint into account during optimisation. The expansion plan is optimised based on the expected increase in the demand for a particular agro-industrial product. To illustrate the proposed model, a palm value chain case study is solved. A scenario with a projected increase in palm oil demand is considered to demonstrate the model. The results for the case study showed a distinctive difference in the expansion strategy compared to single-objective optimisation, exhibiting trade-off between profit and carbon, water footprints.

Non-state certification of smallholders for sustainable palm oil in Sumatra, Indonesia

Rapid expansion of oil palm plantations is one of the leading causes of Indonesia’s continued deforestation over the past decades. To reverse this trend against the wave of increasing global demand for palm oil, non-state certification programs, such as the Roundtable on Sustainable Palm Oil (RSPO), have been promoted to ensure sustainable palm oil production. However, limited empirical studies exist for understanding how RSPO is perceived and practiced by various stakeholders along the palm oil supply chain, especially at the source by small-scale farmers. We surveyed 181 certified independent smallholders in two sites in Jambi, Sumatra to understand: (1) the challenges and benefits of participating in RSPO; (2) the willingness of independent smallholders to continue their participation; and 3) the factors affecting their willingness. We found that most of the challenges of RSPO certification are not well understood by smallholders, except the need for organizational support. In both sites, extensive external support from a local NGO was the key factor that facilitated RSPO certification. Most of the respondents recognize both non-financial (e.g. knowledge, market access, and social recognition) and financial benefits (e.g. sales from RSPO credits) of certification. Although overall, direct financial benefits may be small, they can be a motivator for farmers to continue with certification and for others to consider joining the group when disbursed equitably in non-monetary and communal form, such as in shared food. In contrast, indirect and long-term benefits were not enough to motivate smallholders to maintain RSPO certification. This study provides important insights about the characteristics of the leaders (governing members) and factors affecting RSPO participation from actual experiences of certified smallholders. The information can be used to target early adopters to initiate the RSPO process in farmers’ groups and to develop appropriate facilitation strategies at different stages of certification development for independent smallholders.

Polemik Masyarakat Riau Dan Pemerintah Provinsi Riau Terhadap Perkembangan Kelapa Sawit Di Provinsi Riau

The increasing world demand for palm oil (CPO) has caused the governmentto continue expanding palm oil plantations. Riau is the province with the largest oil palmplantation in Indonesia. The area of oil palm plantations in Indonesia is 13.5 million ha,of which 2.9 million ha are in riau.1 This certainly has an impact for the people in Riauprovince. One positive impact for the people of Riau with the development of oil palmplantations is the increase in income and the opening of employment. The negative impactis that the expansion is done by burning and cutting down the forest, whose effect isremarkable. As happened in the year 2014, when massive forest fires committed in Riauprovince resulted in excessive smoke pollution. The smoke effects are not only felt in Riauarea but also other regions and even neighboring countries also feel the impact of thisforest burning. From the pollution of the smoke is a lot of losses felt by the community,ranging from the many people who contracted the disease ARI, can not leave the house,school, or work, all access outside the area of land, sea or air covered by the thick smokethat menggagga visibility, all of which lead to disadvantage of the community, such aseducation sector to economic sector.

The role of consumer knowledge in reducing the demand for palm oil

SummaryAttempts to mitigate the environmental impact of oil-palm expansion by improving production standards have been of limited success. An alternative approach aims at a better understanding of the factors that drive consumers to reduce excessive vegetable oil consumption. Our studies focused on consumers’ environmental knowledge as a potential determinant of palm oil consumption. They revealed critical limitations in consumers’ palm oil-related knowledge across different domains, study settings and assessment approaches. The more our participants knew about palm oil and its environmental consequences, the stronger were their reported intentions to reduce their consumption. This relationship was significantly stronger for subjective versus objective palm oil-related knowledge. In addition, we examined whether consumers can be stimulated to consult information about palm oil by making information access the default option. While this simple situational nudge promoted information access, we did not find it to significantly increase actual engagement with the information material. This result suggests that it might be necessary to complement default nudges for information access with other measures to enhance palm oil-related knowledge and to reduce palm oil consumption to more sustainable levels.

MODEL PENAWARAN DAN PERMINTAAN MINYAK KELAPA SAWIT INDONESIA DI PASAR INTERNASIONAL

ABSTRACT
 
 Indonesia is the leading producer of palm oil in the world. In 2016 Indonesia and Malaysia produced 81% of the world's palm oil. This study aims to analyze the response of the supply and demand for Indonesian palm oil in the world market. This study used time-series data from 1980-2016. The model built is an econometric model, simultaneous equations. To answer the research objectives, the data were analyzed using the Two Stages Least Square (2SLS) method. The main finding of this study is that in the short term, there are no responsive variables. In the long term, the variable that is responsive to the supply of Indonesian palm oil is the lag area of Indonesian palm oil. In the Malaysian palm oil supply equation, the response variable is the lag area of Malaysian palm oil. In terms of domestic demand for Indonesian palm oil, there are no responsive variables both in the short and long term. In the equation of demand for Malaysian palm oil, the responsive variables are the price of Malaysian palm oil and the price of Malaysian coconut oil. In the international demand for palm oil, the responsive variables are the increase in world palm oil prices, world palm oil prices, 2-year lag in world palm oil prices, and GDP per capita Pakistan. In terms of price, the responsive variable affecting the price of Indonesian palm oil is the world price of palm oil.

STRATEGY OF INDONESIA GOVERNMENT TO MANTAINS PALM OIL MARKET IN INDIA

<p><em>This study aims to determine the factors cause a decrease market share of Indonesia palm oil in India and its implications, and to know the Indonesia government’s strategy maintains the palm oil market in India. The method used is descriptive analysis using theory of competitive adventage diamond model of Michael Porter and Development state theory. The scope of study between 2010 and 2015. The results showed that cause of the decline in the market share of Indonesia palm oil in India due to the application of duty Crude Palm Oil (CPO) is higher than its derivative products in Indonesia, Increased demand for Malaysia palm oil by India and development of palm oil industry in India. The implications of this decline include the loss of potential tax revenue and export volume of palm oil as well as disrupt the Indonesia palm oil industry. Strategy by the Indonesia government is implementing Crude Palm Oil (CPO) Supporting Fund (CSF), Indonesia Trade Promotion Center (ITPC) Chennai (India) and Palm Oil Industrial Cluster. Strategy Indonesia government maintains the palm oil market in India has shown a positive effect. Although some parts are not running perfectly. The government as a stimulant to increase competitiveness of Indonesia palm oil is felt has done its job as it should. Futhermore, this strategy can be continued with evaluation and continuous improvement. </em></p>

Sustainability assessment in crude palm oil production: A review

Palm oil is important commodity for the world since it is a raw material for various important products such as cooking oils, cosmetics, and foods. Moreover, palm oil is found as a source for renewable energy such as biodiesel and biogas. As the result, the demand of palm oil is projected to jump in the future. To fulfil this demand, the increasing of palm oil production is unavoidable. Crude palm oil process is one substantial process to produce palm oil. This process becomes source of income for countries and citizen of those countries where crude palm oil are produced such as Indonesia, Malaysia and Thailand. Despite of these positive impacts, the environmental impacts of crude palm oil process such as greenhouse gas emission, waste, high water and energy consumption are identified. Thus, to maintain sustainability in palm oil production, several standards such as Indonesia Sustainable Palm Oil (ISPO) and Roundtable Sustainable Palm Oil (RSPO) are introduced. One main requirement from these standards is to monitor sustainability impacts of crude palm oil production. Sustainability assessment is a procedure to evaluate sustainability impacts of products, process and policies. This paper aims to review sustainability assessment process applied in crude palm oil production.

Optimization of fresh fruit bunches as crude palm oil production material

The increasing demand for Crude Palm Oil (CPO) makes palm oil production companies continue to improve production planning continuously in order to meet customer demand. Companies that are engaged in CPO production in the Medan city experience problems are not optimal due to companies are often faced with a situation in the form of a production mismatch with the volume of demand due to demand fluctuation. Therefore it is necessary to optimize the procurement of CPO by using linear programming methods. This method is used to maximize or minimize the resources owned by the company with several decision variables, objective functions and constraint functions. The results shows that the decision variables used are CPO cost, the cost of procurement using their own FFB, purchasing FFB cost and processing costs. The objective function is the maximization of company resources and constraint functions consisting of the maximum capacity of the factory, the availability of purchase FFB, the purchase quota of FFB, the availability of direct labor, processing transfers and processing costs.

ВЛИЯНИЕ СТАВКИ НДС НА МОДЕЛЬ ПРЕДПРИНИМАТЕЛЬСКОГО ПОВЕДЕНИЯ (НА ПРИМЕРЕ ИМПОРТЕРОВ ПАЛЬМОВОГО МАСЛА)

The article discusses the problem of the reducing life quality of Russians in the new conditions of the market economy. The Russian phenomenon of the use of “palm oil” as a priority raw material in food production is analyzed against the decrease in its use in the EU countriesand against the expansion of the daily diet of the Chinese due to increased dairy food consumption. Opposing points of view of key industry associations (the Dairy Union of Russia and the Fat and Oil Union of Russia) have been identified and are presented in the context of palm oil use in dairy food production. The results of a statistical study of the demand for palm oil from Russian importers against the background of an increase in the value-added tax rate from 10 to 20% in October 2019 are presented. The data of customs statistics on palm oil imports were analyzed in the context of countries of origin, nine codes of the commodity nomenclature of foreign economic activity, months and years within the five-year period of 2016–2020, as well as in the context of the importing regions of Russia. The results of statistical processing of data by the Federal Customs Service revealed no effect of the sharp increase in the VAT rate on the volume of palm oil imports. The analysis of foreign statistics revealed a significant presence of actors in the chemical industry among transnational companies that are the largest consumers of palm oil. The model of entrepreneurial behavior based on consumption in palm oil production, formed and widely spread in the Russian food industry market, is criticized. 98% of palm oil and its fractions imported into Russia goes to the needs of food industry enterprises, and the authors consider that the foreign ownership of these enterprises plays an important role. In the authors’ opinion, in many respects, the latter fact determined our country’s ranking first in the food chemistry sector in the distribution of published patent applications by technology field for the top 10 origins in 2014–2016. In this respect, Russia is far ahead of China, the USA, Japan, South Korea, Germany, the UK,France, and Switzerland. In China, systematic research is being carried out on the ratio of palm oil use in the food (primarily, instant noodles, other fast food) and non-food (chemical industry, including cosmetics production) sectors.

Ganoderma infection of oil palm – a persistent problem in Papua New Guinea and Solomon Islands

Basal stem rot (BSR) disease caused by Ganoderma boninense Pat. is a major limiting factor to palm oil producing countries in South East Asia, which produce 90% of the world’s palm oil demand. BSR has been known for over 100 years and to date continues to be a disease of increasing economic importance. Once considered a disease of senescing palms, BSR has persisted through successive replants, infecting younger plantings and shortening the economic life span of each cropping cycle. Many approaches have been applied to control BSR of oil palm with varying levels of success. To date, there is still no single approach that has been demonstrated to be effective in BSR management. The long-term strategy would be to breed genotypes resistant or tolerant to BSR. However, this is dependent on a multi-disciplinary approach to understanding oil palm-Ganoderma interactions that can reveal the mechanisms involved with infectivity and pathogenicity of Ganoderma, and susceptibility, resistance or tolerance of oil palm. This review aims to highlight the knowledge gaps that need addressing to improve the control and management of BSR.

Consumer Attitudes toward Palm Oil: Insights from Focus Group Discussions

ABSTRACTPalm oil is an ingredient of many food products. Despite its advantages, palm oil has been associated with adverse environmental, social, and health effects. The Roundtable on Sustainable Palm Oil (RSPO) promotes certified sustainable palm oil, but demand for RSPO-certified palm oil is relatively low. To gain insights into consumer attitudes with respect to palm oil, we conducted online and face-to-face focus group discussions in Germany. Results indicate knowledge gaps and predominantly negative attitudes toward palm oil. Stated preferences for palm oil-free products prevailed among respondents. But palm oil is not among the most important factors affecting consumption decisions, and the majority of respondents lacked information about alternatives to palm oil. Moreover, stated preferences might not reflect actual behavior. Consumers need reliable and accessible information on palm oil and certification. In the global context, it should be considered that replacing palm oil with less efficient alternatives might counteract sustainable development.

Integrating fuzzy analytic hierarchy process into a multi-objective optimisation model for planning sustainable oil palm value chains

This study presents a novel integrated decision model for optimal planning oil palm value chains (OPVC) incorporating decisions to minimise biodiversity losses by limiting the expansion of oil palm plantations as needed and generate value from its waste products. The model can answer the following types of question:What is the best way to deploy OPVC in terms of both economic and environmental factors wherein objectives are integrated systematically by experts? How can the demands for palm oil and palm-based materials and energy products be satisfied with and without considering additional land for plantation? Which conversion technologies will be needed, when and where should these be deployed? How can the resources be managed subject to utilisation, production, import, export and transportation constraints?The planning model developed involves two components: (1) a decision framework using fuzzy analytic hierarchy process (FAHP) to incorporate experts’ knowledge in planning and design under uncertainty and (2) a mixed integer linear program (MILP) to determine the optimal expert-based OPVC design. The framework was applied to different scenarios for the Malaysian palm oil industry. Results show that the demand for crude palm oil (CPO) in Malaysia can be fully satisfied while the international demand can be satisfied by about 60% in 2050. However, in order to minimise environmental impacts and risks of biodiversity losses, the contribution of Malaysia towards satisfying global demand for palm oil should be kept to a minimum. Moreover, the current plantations can satisfy future CPO demand after 5 to 10 years, after which best practices to improve palm oil yield and alternatives comparable to palm oil will be needed. The framework can potentially contribute to the development of better policies in the future through the proposed systematic approach in dealing with sustainability issues in the palm oil industry.