Palm Oil Exports Research Articles

Rooted in Violence: Civil War, International Trade and the Expansion of Palm Oil in Colombia

Internal armed conflict severely inhibits economic growth according to a prominent set of civil war literature. Similarly, emerging scholarship finds that civil war inhibits processes of economic globalisation which are argued to produce economic growth. A case in point is international trade, which is reportedly stymied by intra-state war. In contrast, this article employs a critical theoretical framework which acknowledges the often violent tendencies of globalised capitalism. By analysing Colombia's palm oil industry, this article argues that civil war violence can facilitate international trade. In the case study which is presented, violence perpetrated by Colombia's public armed forces and right-wing paramilitaries has enabled the palm oil sector to enter and compete in the globalised economy. This includes processes of forced displacement, which have acquired land for palm oil cultivation, and violence directed at civil groups deemed inimical to the interests of the palm oil sector. By employing a micro-level approach, this article attempts to isolate violent trends related to palm oil cultivation in Meta, the largest African palm-growing region in Colombia. An attempt is therefore made to give an empirically informed account of how violence in Colombia's civil war is facilitating palm oil exports.

Preliminary Study on Analysis of the Chemical Compositions and Characterization of Empty Fruit Bunch (EFB) in Malaysia

Oil palm (Elaeis guineensis) is the most important crop of Malaysia. Malaysia can be considered as the worlds largest producer and exporter of crude palm oil. The objectives of this work are to analyze and investigate the chemical compositions and the characterization of empty fruit bunches. The chemical compositions of EFB are analyzed using National Renewable Energy Laboratory method. Milled empty fruit bunches submitted to different treatments are characterized by FTIR spectroscopy, carbon-hydrogen-nitrogen analyzer (CHN), thermo gravimetric analysis (TGA), and surface morphology. Chemical compositions which are analyzed include glucan, xylan, arabinan, extractive, ash and lignin contents. The compositions of EFB are determined in two forms which are extractive free sample and native whole sample. The results obtained show that extractive free sample has higher glucan and xylan contents which are 37.8% and 20.5% as compared with whole native sample which are 34.3% and 19.7% respectively. However, the contents of arabinan and lignin of extractive free sample which are 1.5% and 21.8% are much lower than whole native sample which are 2% and 28.7% respectively. The ash content for both samples is 5.2%. The result for extractive analysis of extractive free sample is 15%. The basic functional groups and elements which present in EFB are obtained by FTIR and CHN analysis respectively. TGA analysis curve shows the decomposition of EFB peak value at 312.5oC. The morphology study of EFB carried out using Scanning Electron Microscopy (SEM) shows a roughness surface.

The Effects of Process Parameters on the Pyrolysis of Empty Fruit Bunch (EFB) Using a Fixed-Bed Reactor

Malaysia is well-known as one of the main producer and exporter of palm oil. With the high production of crude palm oil (CPO), huge amount of empty fruit bunch was generated as by-products. The abundant amount of EFB produced required careful waste management procedures. Pyrolysis is thermochemical decomposition of biomass in inert environment towards its conversion into bio-oil, bio-char and gas. In this study, the pyrolysis of empty fruit bunch (EFB) was conducted using a fixed bed reactor. The pertinent process parameters such as pyrolysis temperature, particle sizes and heating rates were investigated via the determination of the percentage product yields such as bio-oil, bio-char and gas. The first series of experiment was conducted to determine the effect of pyrolysis temperatures. The final pyrolysis temperature was varied at 300, 400, 500, 600 and 700 °C at constant heating rates and the nitrogen flowrates of 30 °C/min and 100 cm3/min respectively. It was determined that at pyrolysis temperature of 500 °C maximum bio-oil yield of 35.00 % was obtained with bio-char and gas yield of 26.98 and 38.02% respectively. In the second series of experiment, the effect of particle sizen was studied. The EFB particle was varied at <125, 125-250, 250-500, 500-710 and 710-1000 μm. The pyrolysis temperature was fixed at 500 °C with nitrogen flowrate of 100 cm3/min and heating rate of 30 °C/min. It was determined that using EFB particle size of 250-500 μm, the maximum bio-oil of 38.52% was achieved with bio-char and gas yields of 25.06 % and 36.42% respectively. In the third series of experiment to determine the effect of heating rates, the heating rates was varied at 10, 20, 30, 40, 50 and 60 °C/min towards the final pyrolysis temperature of 500 °C with constant nitrogen flowrates of 100 cm3/min. The results obtained showed that the highest amount of bio-oil of 40.81% was obtained when the heating rate of 20 °C/min was used. The bio-char and gas yield obtained were 24.69% and 34.50% respectively.

The Development and Prospect of Indonesian Palm Oil Industry and Its Derivative Products

In 2013, the world palm oil production reached 55.7 million tons. Indonesia and Malaysia shared 85% of it with their production of 26.70 and 21.70 million tons, respectively. The aims of this study were to identify and analyze the development and prospect of Indonesian palm oil industry and its derivative products. Data were analyzed by using a descriptive approach. The area of oil palm plantation increased to 9,074,621 ha in 2012. Indonesia’s palm oil production in 2012 was 23.5 million tons. There was also an increased Indonesia’s palm oil export to 18.15 million tons in 2012. In 2010, the installed capacity of cooking oil industry in Indonesia was 15.4 million tons. For fatty alcohol industry, the installed capacity was 320,000 tons/year. In 2007, with real production of 300,000 tons, the 100% real capacity was almost reached. The installed capacities of biodiesel and glycerin industries in 2011 were 3.4 million kiloliters/year and 142,700 ton/year, respectively. In 2010, glycerin production was about 204,394 tons. Glycerin production was 121,640 kiloliters from fatty acid and fatty alcohol industries and 61,694 kiloliters from biodiesel industry.

China-ASEAN Free Trade: Complementary or Competition

Indonesia and ASEAN countries generally have relatively the same resource, mainly as a fellow producer of agricultural products. Joining Chinainto the regional economic integration through theagreement China-ASEAN Free Trade Area (CAFTA), giving new opportunities and challenges for them. The opportunities come from the openingof the large market of China whose many products are relatively different. But it is also a challenge because of the pressure of competition. Competition pressures come not only because of the influx of cheaper Chinese products, but also competition among ASEAN countries due to the similarity of their products. For example, Indonesia and Malaysia are the two largest palm oil exporters in the world, and Thailand (with Indonesia) is the world's major exporters of natural rubber. This paper aims to examine the trend of complementarity and similarity CAFTA countries and the correlation to exports trend. By using annual time series data 1995-2010, the analysis is based on the two main indicators; complementarity and export similarity index.

The Effect of Mixing Coal with Biomass in Solid Fuel Briquettes

Burning fossil fuel like coal in power plants released carbon dioxide that had been absorbed millions of years ago. Unfortunately, excessive carbon dioxide emission had led to global warming. Malaysia, as one of the major exporters of palm oil, has abundant oil palm mill residues that could be converted into value-added product like biomass fuel briquettes. Fuel briquette with palm kernel shell and palm mesocarp fibre as its main ingredients showed satisfactory fuel characteristics and mechanical properties as a pure biomass fuel briquette. The effects of adding some coal of higher calorific value to the satisfactory biomass fuel briquette were focused in this study. Various coal-biomass fuel blends were used, ranging from 0wt% coal to 50wt% coal. The fuel properties and mechanical properties of pure biomass briquette and briquettes with different amount of coal added were compared experimentally. From the fuel properties tests, it was found that as the coal content in the briquette was increased, the carbon content and calorific value increased. Mechanical property tests on the fuel briquettes showed a mixture of results, with some favored higher portion of coal in the briquette for better handling, transport and storage properties while some favored greater amount of biomass.

Reducing emissions from land use in Indonesia: motivation, policy instruments and expected funding streams

Land-based emissions of carbon dioxide derive from the interface of forest and agriculture. Emission estimates require harmonization across forest and non-forest data sources. Furthermore, emission reduction requires understanding of the linked causes and policy levers between agriculture and forestry. The institutional forestry traditions dominated the emergence of the discourse on Reducing Emissions from Deforestation and forest Degradation (REDD+) while more holistic perspectives on land-based emissions, including agriculture, found a home in international recognition for Nationally Appropriate Mitigation Actions (NAMAs). We tested the hypothesis that, at least for Indonesia, the NAMA framework provides opportunities to resolve issues that REDD+ alone cannot address. We reviewed progress on five major challenges identified in 2007 by the Indonesian Forest Climate Alliance: 1) scope and ‘forest’ definition; 2) ownership and tenurial rights; 3) multiplicity and interconnectedness of drivers; 4) peatland issues across forest and non-forest land categories; and 5) fairness and efficiency of benefit-distribution mechanisms across conservation, degradation and restoration phases of tree-cover transition. Results indicate that the two policy instruments developed in parallel with competition rather than synergy. Three of the REDD+ challenges can be resolved by treating REDD+ as a subset of the NAMA and national emission reduction plans for Indonesia. We conclude that two issues, rights and benefit distribution, remain a major challenge, and require progress on a motivational pyramid of policy and polycentric governance. National interest in retaining global palm oil exports gained priority over expectations of REDD forest rents. Genuine concerns over climate change motivate a small but influential part of the ongoing debate.

Use of Oil Palm Waste as a Renewable Energy Source and Its Impact on Reduction of Air Pollution in Context of Malaysia

One of the most efficient and effective solutions for sustainable energy supply to supplement the increasing energy demand and reducing environment pollution is renewable energy resources. Malaysia is currently the world's second largest producer and exporter of palm oil and 47% of the world's supply of palm oil is produced by this country. Nearly 80 million tonnes of Fresh Fruit Bunches (FFB) are processed annually in 406 palm oil mills and are generating approximately 54 million tonnes of palm oil mill effluent (POME), known to generate biogas consisting of methane – a Green House Gas (GHG) identifiable to cause global warming. This is 21 times more potent GHG than CO2. These two major oil palm wastes are a viable renewable energy (RE) source for production of electricity. If the two sources are used in harnessing the renewable energy potential the pollution intensity from usage of non-renewable sources can also be reduced significantly. This study focused on the pollution mitigation potential of biogas as biogas is a renewable energy. Utilization of this renewable source for the production of electricity is believed to reduce GHG emissions to the atmosphere.

Experimental Investigations on the Characteristics of Biomass and Coal-Biomass Fuel Briquettes

Combustion of coal, a fossil fuel, in power plant, is a major source of carbon dioxide emission, a greenhouse gas that causes global warming. Malaysia is one of the major exporters of palm oil and has 421 palm oil mills operating in 2010. Some of the residues from these mills like palm kernel shell and palm mesocarp fibre were converted into value-added products. An optimum biomass fuel briquette was obtained with palm kernel shell and palm mesocarp fibre as the major ingredients. Co-firing coal with biomass is a possible approach for power plant to curb the excessive emission of carbon dioxide. In this study, bio-briquette having 50% coal and 50% biomass which consisted of the ingredients of optimum biomass fuel briquette were studied in details. Comparison of the fuel properties, combustion characteristics and carbon dioxide emission between the optimum biomass fuel briquette and bio-briquette was made.

Activated Carbon Fiber Derived from Pyrolysis of Palm Fiber

Palm empty fruit bunch (EFB) is an abundant by-product resulted from massive palm oil production in Malaysia as one of the world's largest exporter and second largest producer of palm oil. This agricultural waste is usually disposed in nature, burnt in opened atmospheres, or used as a fuel for boilers. Such conventional handlings of EFB have created environmental concerns to Malaysia such as air pollution and release of green house gases (CH4 and CO2). This study made use of such biomass in the production of cost effective nanoporous material, namely activated carbon fiber (ACF) which able to diminish the problem of waste disposal, and at the same time to turn waste into wealth. This is especially beneficial when the ACF is used for environmental friendly application such as adsorbed natural gas (ANG) technology. ACF was formed from carbonaceous materials via process of carbonisation and activation. Both chemical and physical activations were carried out by using H2SO4 and CO2, respectively. In pyrolysis, carbonisation was conducted at temperatures i.e. 400, 600, 800 and 1000 °C in nitrogen (N2) atmosphere. Surface morphologies, microstructures, pore structures and surface chemistry of these samples were investigated for the characterisation of EFB fiber-derived ACF. Above 80% of the total pore volumes for the samples were contributed by the micropore as the major pore components in the ACF produced. The samples exhibited an high BET surface area , dominant micropore volume up and narrow pore size distribution in micro range (< 1.5 nm).

An Experimental Investigation on the Handling and Storage Properties of Biomass Fuel Briquettes Made from Oil Palm Mill Residues

As a major crude palm oil exporter Malaysia contributed 51% of the world’s palm oil production in 2010, large amounts of waste material was generated from the palm oil extracting process from which 4.46 million tonnes were palm kernel shell, 7.73 million tonnes were mesocarp fibre and 21.34 million tonnes were empty fruit bunches. One of the major technical challenges in utilizing biomass waste material as a solid fuel is the handling and storage issues of loose and wet waste material. A solution to improving the handling and storage properties of loosely-bound oil palm mill residues is proposed in this work via a densification process known as fuel briquetting. Raw palm oil waste material was pulverized and compacted with a 159 MPa pressing pressure to form 40 mm diameter fuel briquettes. The Fuel briquettes made from the different types and combinations of palm oil mill residues were explored for optimum storage and handling features. It was found that a fuel briquette with a 60:40 palm kernel shell to mesocarp fiber ratio using waste paper as its binding agent gave the best mechanical properties without sacrificing the combustion properties of the solid fuel.

A Survey on the Barriers of Benchmarking Implementation in Malaysia Oil Palm Industry

Malaysia is the largest producer and exporter of palm oil. Nevertheless, Malaysia may soon lose its position if there are lacks of initiatives to sustain it. Benchmarking can be used to stimulate process improvement by determining best practices across oil palm organizations through understanding critical success factors which enabled higher performance in leading organizations. The main objective of this paper is to identify benchmarking barriers that hinder or disrupt the benchmarking implementation in oil palm industry. To achieve these objectives, 700 sets of questionnaire were distributed among oil palm planters and millers in Malaysia. The survey results had indicated that the three main obstacles faced in implementing benchmarking in oil palm industry are: lack of understanding of benchmarking knowledge, lack of clarity with regard to specific areas to be benchmarked and management culture. In the authors’ opinion this survey findings would be useful and considerable interest to all level of benchmarking practitioners in the oil palm industry.

Intergenerational socio-economic mobility and national development in Nigeria

Nigeria is blessed with an abundance of human and natural resources. It is the 6 th largest exporter of crude oil, formerly the largest and now the third largest exporter of palm oil in the world. It has the largest gas reserves in Africa including a vast accumulation of other natural resources and a population of about 147 million people, but it is one of the poorest and least developed countries in the world. This contradiction seems to evidence the fact that resources alone are not sufficient to engender growth and national development. For development to occur, the resources (human and material) must be employed to serve the positive needs of man. The human resources must be encouraged to work, initiate, interact and direct material resources towards solving practical problems and creating conveniences for man. For these to be, each and everybody in the society should be given an opportunity to contribute his or her quota toward meeting individual and collective needs. There is a need to create an opportunity space for all to contribute their talents, abilities and aptitudes towards solving societal problems. The wider the opportunity, the better for the economy. However, in Nigeria, unemployment, poverty, corruption, inequality among others, narrow the opportunity structure with the consequence that only a few people are positively engaged while majority of Nigerians rest heavily on receipts from the petroleum industry with its pollution and corruption side effects. This, has generated so much problems as the untapped energy is dissipated in negative directions in an attempt to ‘corner’ a larger share of the petroleum proceeds which is seen as free, God-given national cake which needs no work to benefit from. Intergenerational socio-economic mobility is an index that measures the opportunity structure in society, and the wider the opportunity structure, the more development is likely to occur. In sum, it is not just resources (oil or no oil) but the opportunity space that will engender development.

Malaysia’s palm oil exports: Does exchange rate overvaluation and undervaluation matter?

This paper examines the impact of exchange rate risk on the exports of palm oil in the era of recurring financial crises and global economic instability. The exchange rate risk is captured by misalignments in the real bilateral US/RM exchange rate. This paper is divided into two parts. First, the incidence of exchange rate misalignment is observed using price-based approach (purchasing power parity) and model-based approach [behavioural equilibrium exchange rate (BEER)]. Next, the estimated exchange rate misalignment is used as a variable in the export model to capture the impact of risks. The long run estimates suggest that exchange rate misalignments affect palm oil exports in a negative manner. Then, the estimated misalignments are segregated into events of overvaluation and undervaluation to further comprehend their individual impact. Results suggest that in the long run, overvaluation has a significant negative impact on palm oil exports. The opposite however, could not be construed in the case of undervaluation which indicates asymmetries in the impact of overvaluation and undervaluation of the exchange rate on palm oil exports. Hence, it is imperative that policy-makers avoid both overvaluation and undervaluation and keep the real exchange rate in line with the economic fundamentals. Keywords: Exchange rate misalignment, overvaluation, undervaluation, palm oil exports.

Swimming Upstream: Local Indonesian Production Networks in “Globalized” Palm Oil Production

When agricultural commodities in developing countries experience an economic boom, they offer potential pathways out of poverty while creating environmental and social problems. While recent research provides insights into the governance of international supply chains, it provides less analysis of the local production networks creating critical problems. Indonesia is now the world’s largest exporter of crude palm oil. This paper analyses processes of oil palm development in three oil palm districts. It considers how policy models, regime interests, and agribusiness strategies shape local production networks, generate local outcomes, and affect the possibilities of tackling issues associated with this boom.

Determinants of Indonesian Palm Oil Export: Price and Income Elasticity Estimation

For Indonesian economy, palm oil is considered as one of important commodities. It provides a large amount of export revenue and job opportunities. From year 2000 to 2009, palm oil production in Indonesia has increased every year. In , 2008 about 70% of its production was exported. Recently, Indonesia has become the largest palm oil exporter and has 48% of the worlds market share. The aim of present study was to estimate the determinants of both crude palm oil exports (HS = 151110) and refined palm oil exports (HS = 151190) from Indonesia to the world market. In this study the export demand approach is used as a methodology to estimate price and income elasticity for Indonesian palm oil exports since January 1996 to July 2010. The results found that Indonesian palm oil export is significantly determined by its own export price and foreign countries income. The value of the elasticity of its own export price in the short- run is -0.54 which is larger than the value in the long-run is -0.41. It is similar to the estimated value of foreign countries income elasticity. It has larger value in the short-run (0.61) than in the long-run (0.49). The inelastic income elasticity result indicated Indonesian palm oil export is normal good. The estimated results are supported by in-significant result of world price of soybean oil. In conclusion, Indonesian government should consider the improvement of marketing strategies, trade and domestic policies which support Indonesian palm oil export.

Dampak Kenaikan Harga Minyak Bumi terhadap Ketersediaan Minyak Goreng Sawit Domestik

This paper attempts to examine the impact of rising fossil fuel prices on the increasing impact on the demand of alternative fuels (biofuels), and its impact on food availability in Indonesia. An econometric model using simultaneous equations is employed. An increase in world crude oil price for 0,192 percent caused the price of real Indonesian palm oil export raised by 10,64 percent. Consequently, a larger biodiesel production is needed to meet their crease of world's consumer demand for biodiesel. Also, with the increase in real export price of Indonesian palm oil, it will encourage palm oil producers to push their export volume. Indonesian palm oil exporter expected to increase by 6,37 percent to finally push the domestic CPO price increase for 1,85 percent. Rising domestic oil prices are causing oil demand in the palm oil industry to decline by 0,49 percent and in the end resulting in the decline of palm oil production by 1,56 percent.

Why do Farmers Prefer Oil Palm? Lessons Learnt from Bungo District, Indonesia

Indonesia has been the world’s largest producer and exporter of palm oil since 2008. This paper discussed the livelihood impacts of oil palm development in Indonesia, based on lessons learnt from Bungo district, in the province of Jambi. The various community-company partnerships that structure the sector are reviewed and the difficulties raised by the joint ventures schemes are discussed. The merits and drawbacks of oil palm as a smallholder crop are then analysed, based on household socio-economic surveys conducted in 2007–2010. The main causes of conflicts between oil palm companies and communities are unclear land tenure, and a recurrent lack of leadership in smallholders’ cooperatives. Under fair partnerships between smallholders and companies, oil palm could become a smallholder friendly crop. The land-use profitability analysis demonstrates the high returns that can be generated by oil palm independent smallholdings, making it highly competitive with rubber, and much more profitable than rice production.

The Effect of Export Tax on Indonesia’s Crude Palm Oil (CPO) Export Competitiveness

Crude palm oil (CPO) is one of the main export commodities of Indonesia. Besides an export commodity, it is also an essential raw material in producing cooking oil. In order to secure the availability of domestic CPO, the government of Indonesia imposed an export tax policy in September 2004. The objective of the export tax was to control the price of cooking oil at an affordable rate. The objective of this study is to describe the export tax policy on CPO imposed by the Indonesian government and to analyse the effect of the export tax on Indonesia's CPO export competitiveness compared with Malaysia, the main competitor. An export ratio equation between Indonesia and Malaysia is constructed using monthly data. The dependent variable is CPO export of both countries, meanwhile the independent variables include price ratio, export tax difference, refined palm oil export ratio, and exchange rate ratio. The result shows that Indonesia's export tax policy will cause CPO export competitiveness to decrease.

Environmental Performance of the Milling Process Of Malaysian Palm Oil Using The Life Cycle Assessment Approach

Malaysia is currently the world leader in the production and export of palm oil. This study has a gate to gate system boundary. The inventory data collection starts at the oil palm fresh fruit bunch hoppers when the fresh fruit bunch is received at the mill up till the production of the crude palm oil in the storage tanks at the mill. The plantation phase and land use for the production of oil palm fresh fruit bunch is not included in this system boundary. This gate to gate case study of 12 mills identifies the potential impacts associated with the production of palm oil using the life cycle assessment approach and evaluates opportunities to overcome the potential impacts. Most of the impact categories show savings rather than impact. Within the system boundary there are only two main parameters that are causing the potential impacts to the environment; they are the Palm Oil Mill Effluent (POME) followed by the boiler ash. The impact categories that the POME contributes to are under the Respiratory Organics and Climate Change. Both these impact categories are related to air emissions. The main air emission from the POME ponds during the anaerobic digestion is the biogas which consists of methane, carbon dioxide and traces of hydrogen sulfide. An alternate scenario was conducted to see how the impact will be if the biogas was harvested and used as energy and the results shows that when the biogas is harvested, the impact from the POME is removed. The other significant impact is the boiler ash. This is the ash that is produced when the biomass is burnt in the boiler. This potential impact contributes to the ecotoxicity impact category. This is mainly because of the disposal of this ash which in most cases was used for land application in the roads leading to the mil or in the plantations. If the parameters causing these two potential impacts are curbed, then this will be a further plus point for the Malaysian oil palm industry which is already avoiding fossil fuel based energy and chemical use for processing.