Grown only in the tropics, the oil palm tree produces high-quality oil used primarily for cooking in developing countries. It is also used in food products, detergents, cosmetics and, to a small extent, biofuel. Palm oil is a small ingredient in the U.S. diet, but more than half of all packaged products Americans consume contain palm oil—it's found in lipstick, soaps, detergents and even ice cream.
Palm oil is a very productive crop. It offers a far greater yield at a lower cost of production than other vegetable oils. Global production of and demand for palm oil is increasing rapidly. Plantations are spreading across Asia, Africa and Latin America. But such expansion comes at the expense of tropical forests—which form critical habitats for many endangered species and a lifeline for some human communities
Global palm oil requirements are set to be huge in the long-term future, to satisfy demand from the agrifood and oleochemicals industries, and also the more recent demand for biofuels. Palm oil is primarily consumed in densely populated developing countries (China, India, Indonesia, Nigeria, etc), but Europe is now the leading importer, along with China.
Palm oil is an edible vegetable oil, high in saturated fats, derived from the fruit of the oil palm tree. It is grown commercially in several tropical countries but mainly in Indonesia and Malaysia, which account for 85% of global palm oil production.
The palm fruit yields two distinct oils – palm oil and palm kernel oil. Palm oil is extracted from the pulp of the fruit, is edible and used primarily in food products. Palm kernel oil is extracted from the seed of the fruit and is used mainly in the manufacture of soaps and cosmetics, while palm kernel expeller (PKE) is used as a feed for livestock and as biofuel for generating electricity.
Oil palm is highly productive, capable of yielding more oil from less land than any other vegetable oil, with relatively modest inputs. As a result, palm oil production has become an important source of income and a major part of the economy in the regions where it is grown, providing livelihoods for local communities and helping to lift people out of poverty.
