Palm oil is produced from the oil palm, primarily Elaeis guineensis, which originated in West Africa, but has adapted extremely well to other tropical lowland regions. The largest producer of palm oil is Malaysia, accounting for approximately 49% of global production. Indonesia ranks second, accounting for another 36%. Nigeria follows a distant third, with 2.9%. Oil palm plantations exist on a much smaller scale in several other African countries and in Central and South America (e.g., Colombia,
Ecuador and Costa Rica). SE Asia is thus by far the main palm oil producing region accounting for in excess of 85% of world production (Figure 2.1). This is produced from over of 6 million hectares of plantation which represents nearly 80% of the world total oil palm plantation area. Between 1999/00 and 2002/03 Malaysian production of palm oil grew at 8.5% per year, whilst Indonesian production growth outstripped the world average, growing at 14.7% per year. (IIED, ProForest, Rabobank, 2004).
Palm oil contains an equal proportion of saturated and unsaturated fatty acids. It's particularly rich in the saturated palmitic acid (44%), with substantial amounts of the monounsaturated oleic acid (40%), and smaller amounts of polyunsaturated fatty acids (10%).
End users of palm oil are firstly producers of margarines, shortenings, cooking oils etc., such as Unilever and Vandemoortele, and secondly the users of such products. These are primarily found in the bakery business, confectionery, ice cream, snacks, the noodle industry and sectors using frying products.
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