THE PALM OIL STORY Facts and Figures Palm oil offers a good balance between the nutritional composition and taste and texture of a product. In this brochure you will find information and references on the nutritional composition, value and effect of palm oil in the diet. It also explains how palm oil is sourced from palm fruit; stresses the importance of sustainable production, and explains how palm oil can be used in different food products. THE PALM OIL STORY - 2 CONTENTS What is palm oil? . 4 • Palm oil production . 5 • Sustainable palm oil . 7 • Palm oil consumption . 9 • Palm oil uses . 10 A natural and versatile ingredient . 11 • Fatty acid composition . 11 • Benefits of using palm oil . 12 • Alternative to trans fat . 12 Part of a balanced diet . 13 • Fat recommendations . 13 • Palm oil and health . 14 • Healthy lifestyle . 15 About EPOA . 16 Informed by science . 16 • References . 17 © EPOA 2019 Rights reserved THE PALM OIL STORY - 3 WHAT IS PALM OIL? DID YOU KNOW? Palm oil and palm kernel oil represent Palm oil is the most widely-used vegetable oil in Provided by nature 40 per cent of the global vegetable oil the world. Palm fruit oil, generally known as palm The oil palm tree grows in regions around the production oil, is produced from the pulp of the fruit of the equator . It is a tropical tree with leaves about oil palm tree (Elaeis Guineensis). This tropical 5 metres long. Originally found in West africa, 73 million tons of palm oil is produced fruit is reddish in colour because of a high beta- the oil palm tree is now mostly cultivated in annually carotene content. The fruit is about the size of a Indonesia and Malaysia, the world’s largest palm large olive. The fruit has a single seed or kernel, oil producing nations . which is used to produce palm kernel oil. Each One palm tree produces 40 kilogrammes palm fruit contains about 30-35 per cent oil. Palm From a tropical climate of palm oil every year fruit oil and palm kernel oil differ significantly in Nature plays a big part in the palm oil story . What their fatty acid composition, but have the same the tree loves above all, is sun and humidity. One hectare of oil palm trees can produce It thrives on plenty of sunshine, temperatures botanical origin. tons of oil each year ranging between 24 and 32 degrees centigrade 3 .8 and rainfall evenly distributed throughout the year. Therefore, the most suitable areas for Oil palm accounts for 7 per cent of all the cultivation are located between ten degrees north cultivated land for vegetable oils globally, and south from the equator. Apart from Indonesia but has the highest output, producing 40 and Malaysia there is an increase in palm oil per cent of all oils and fats production in other parts of the world including South and Central America, Thailand and Western Indonesia and Malaysia supply 84 per Africa. cent of the palm oil used globally but more and more palm oil is imported from Latin America In Indonesia and Malaysia together, approximately 4 .5 million people earn a living from palm oil The use of palm oil in human nutrition dates back many thousands of years THE PALM OIL STORY - 4 PALM OIL PRODUCTION A highly efficient crop (Oil World 2019) The oil palm tree is the most efficient oil crop Indonesia & Malaysia Highest yield in terms of land use. It has the highest yield compared to other oil crops per hectare of land. provide 84% of the world When the oil palm trees are three to four years production 3 .8 old the fruits are harvested. Global palm oil production has increased from 0 .8 0 .8 15 .2 million tons in 1995 to 72 .8 million tons in 0 .5 2018. This is the highest production volume of all vegetable oils, exceeding the second biggest oil (tons) per hectare oilseed crop by more than 10 million tons . This Soy Palm volume is mainly produced by Indonesia (57 per Rape cent) and Malaysia (27 per cent) . There has also been a marked increase in palm oil production in Sunflower other parts of the world. Most of the additional volume is generated in South and Central America (4.5 million tons), Thailand (2.8 million tons) and Western Africa (2.7 million tons). Global production and major origins of palm oil, 2000 - 2018 (Oil World 2019) x million tons World Malaysia Indonesia 70 72,8 60 50 40 41,5 30 20 19,5 10 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 THE PALM OIL STORY - 5 Other palm oil producing countries/regions with the strongest volume growth, 1995 - 2018 (Oil World 2019) x million tons 5 1995 4 .5 4.53 2018 4 3 .5 3 2 .5 2.72 2.78 2 1 .5 1 1.35 0 .5 0.88 0.63 0.35 0.08 0.45 0 0.22 Andes region Western Africa Thailand Papua New Guinea Brazil Central America Among major oilseed crops, oil palm accounts Major oilseeds: Area in 2018 Global production of oils and fats in 2018 for the smallest percentage (7.4 per cent) of (Total is 288.7 million hectares) (Oil World 2019) (Total is 203.3 million tons) (Oil World 2019) all the cultivated land for oils and fats globally, but produces the largest percentage (39 .6 per cent) of total output. It uses less than half the Soybean Palm & Palm land required by other crops (such as sunflower, Kernel soybean or rapeseed) to produce the same Palm Oil Rapeseed Palm Oil Soybean amount of oil. Cottonseed Rapeseed Despite these advantages, the impact of oil palms 7.4% Sunflower 39.6% Sunflower growing on High Conservation Values Areas, peat land use Palm output Cottonseed land, and former tropical forests, are issues that Others: Groundnut, Groundnut need to be adequately addressed . Production and Copra, Linseed, use of sustainable palm oil will help to maintain or Sesameseed and Others Castorseed enhance biological, ecological and social values in the countries of origin. THE PALM OIL STORY - 6 World production of major vegetable oils in 2018 (Total is 200.8 million tons) (Oil World 2019) x million tons 70 60 50 40 73% 30 56% 20 25% 10 19% 8% 5% 4% 4% 3% 3% Palm oil Soybean oil Rapeseed oil Sunflower oil Palm kernel oil Cottonseed oil Corn oil Groundnut oil Olive oil Coconut oil SUSTAINABLE PALM OIL Oil palms are grown on both large-scale The long-term focus Sustainable palm oil plantations and small-scale family farms. The With this global rise in the demand for palm oil, In response to the urgent and pressing need to challenge of their sustainable cultivation is two- the areas of land dedicated to palm oil cultivation address these concerns and meet global demand fold: achieve the highest yields while impacting has expanded rapidly . The challenge is to ensure for sustainably produced palm oil, a group of nature as little as possible. As a result of that the expansion takes place sustainably, with companies and NGOs joined forces in 2004. They population and prosperity growth in countries respect for people and nature in countries with established the first sustainability standard to such as China and India, the demand for palm oil some of the most biodiverse regions of the planet. certify the production and use of sustainable palm continues to grow strongly . Palm oil production Deforestation and the decrease of carbon stocks oil and founded the Roundtable on Sustainable is expected to grow to a global level of more (areas which retain a large amount of carbon) are Palm Oil (RSPO) . than 85 million tons by 2025 . In most palm oil serious issues. If not properly managed, large- producing countries, palm oil trade has the scale palm oil productions can adversely affect potential to contribute significantly to economic valuable nature, cause infringements of the land growth and poverty reduction . rights of the local population and may lead to excessive use of pesticides. THE PALM OIL STORY - 7 RSPO is a not-for-profit association that unites European initiatives for sustainable palm oil The commitment aims to increase and align stakeholders from seven sectors of the palm oil To increase the uptake of sustainable palm oil it is the demand for sustainable palm oil in Europe industry: palm oil growers, palm oil processors or essential for industries in the palm oil supply chain by working together with the European traders, consumer goods manufacturers, retailers, to join forces. To this end, companies and sector sector associations organised in the European banks and investors, environmental and nature associations are working together in ‘national Sustainable Palm Oil Advocacy Group (ESPOAG) conservation NGOs and social or developmental alliances on sustainable palm oil’. These alliances and certification standards such as the RSPO. The NGOs . Other sustainability standards such as the are now widespread in Europe, committing many commitment is also supported by seven European International Sustainability & Carbon Certification companies and sectors to use sustainable palm governments in the Amsterdam Declaration in (ISCC) also have a certification system for oil . All national alliances have a commitment to Support of a Fully Sustainable Palm Oil Supply sustainable palm oil . use 100% certified sustainable palm oil, with many Chain by 2020 . alliances also moving towards additional criteria Indonesia and Malaysia have also developed and the continuous improvement of certification their own standards for certified sustainable standards . Current national initiatives for sustainable palm palm oil .