Mar 15, 2013 16:48 GMT Malaysia and Indonesia dominate industry exports, controlling over 50%

Global production of oils and stands at 160 million tonnes, with palm oil and oil representing the largest contributor, accounting for 48 million tonnes or 30% of the total output.

Palm oil is an edible derived from the mesocarp (reddish pulp) of the of the oil palms, primarily the African oil palm guineensis, and to a lesser extent from the American oil palm and the maripa palm maripa.

Palm oil represents the highest yielding oil crop in the World with an output five to ten times greater per hectare than other leading vegetable oils. The high yield per hectare, low price, relative shelf stability and nutritional benefits all contribute to ensuring palm oil remains an important natural resource.

Malaysia and Indonesia are the dominant exporters of palm oil, exporting 91% and 70%, respectively, of the palm oil they produce. The lower proportion in Indonesia is a reflection of the population in these two countries of 237 million in Indonesia and only 29 million in Malaysia.

Production in Malaysia has been an important element in the development of that country and in the world supply of dietary oils and fats in the last 30 years. Production in Malaysia has increased from only 1.3 million tonnes in 1975, through 4.1 million tonnes in 1985 and 7.8 million tonnes in 1995 to 18.2 million tonnes.

On the basis of trade in oils and fats in 2011/12, Malaysia supplied 25.8% of world exports as palm oil with Indonesia providing 25.7% as palm oil, so these two countries together supply over one half of total trade in vegetable oils.

The major importing countries/regions are India, China and EU-27. The USA has never been a significant consumer of palm oil and in the past denigrated the oil as a 'saturated tropical oil.' Consumption has risen slightly in recent years as American food manufacturers revised their recipes to lower the level of trans unsaturated acids produced through partial hydrogenation of soybean oil.

For more information on the palm oil market, see the latest research: Palm Oil Market

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