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Agro industry

World’s largest producer of PALM OIL

PALM OIL (Elaeis guineensis) originated from West Africa and was first introduced to Malaya in early 1870's  as an ornamental plant. In 1917 the first commercial planting took place, laying the foundations for the vast oil palm plantations and palm oil industry in Malaysia. 

The cultivation of oil palm rapidly increased beginning in the sixties under the government's agricultural diversification programme which was aimed at reducing the country's economic dependence on rubber and tin. In the 1960s, the government introduced land settlement schemes for planting oil palm as a means to eradicate poverty for the landless farmers and smallholders. The oil palm plantations in Malaysia are largely based on these estate management systems and smallholders schemes.
Today, 4.05 million hectares of land in Malaysia is under oil palm cultivation and in 2005 almost 15 million tonnes of crude palm oil was produced. Malaysia is the largest producer and exporter of palm oil in the world, accounting for approximately 30 per cent of the world's traded edible oils and fats supply. The industry provides employment to more than half a million people and livelihood to an estimated one million people.
The oil palm is the most efficient and highest yielding oil crop. An average yield per hectare of land planted with oil palm is 3.66 tonnes annually compared to 0.36, 0.46 and 0.60 for soybean, sunflower and rapeseed respectively.
With only 0.4 per cent of the world's population, Malaysia produces 11per cent of the global vegetable oils and supplies 29 per cent of export trade in oils and fats. This is carried out on <2per cent (4 million hectares) of the total area (216 million hectares) under global oilseeds cultivation.
The oil palm produces two types of oils; palm oil from the fibrous mesocarp and palm kernel oil from the kernels. Although both oils originate from the same fruit, palm oil is chemically and nutritionally different from palm kernel oil.  It is one of the only two mesocarp oils available commercially, the other being olive oil.

The Oil
Palm oil, being a vegetable oil, is cholesterol-free. It is a rich source of vitamin E which confers natural stability against oxidative deterioration. 
Palm oil has a balanced ratio of unsaturated and saturated fatty acids.  It contains 40 per cent oleic acid (monounsaturated fatty acid), 10 per cent linoleic acid (polyunsaturated fatty acid), 45 per cent palmitic acid and 5 per cent stearic acid (saturated fatty acid). This composition results in an edible oil that is suitable for use in a variety of food applications.

Food Applications
Palm oil is a naturally balanced oil that is versatile and well suited for use in numerous food applications. Palm oil and its fractions are readily consumed worldwide as cooking oil either directly or in blended form. It is widely used in the manufacture of shortenings, margarines, vegetable ghee and specialty fats in addition to its use in household and as industrial deep frying oil. Products made from palm oil do not require hydrogenation, and are thus free from harmful trans fatty acids.

Non-Food Applications
Oleochemicals: Palm-based oleochemical is a good starting material for the manufacture of non-edible products such as soaps, detergents, and other surfactants.  It is natural and renewable. Products made from palm-based oleochemicals are more readily biodegradable, use less energy and cause less emissions, hence do not pose a threat to environment.   
Biodiesel: Palm-based bio-diesel can be produced through a process called transesterification. The process chemically breaks the fat molecules into two products which are methyl esters (the chemical name for bio-diesel) and glycerin.  Palm-based bio-diesel has been tested extensively as diesel substitute in a wide range of diesel engines including passenger cars, buses and trucks.

Palm Olein - the better choice

OLIVE OIL has long been touted as the gold standard among edible oils. Its reputation is largely based on the lower incidence of heart disease among the Mediterranean population who have traditionally consumed olive oil as their main dietary fat.
Another important monounsaturated dietary oil is palm olein - the liquid fraction of palm oil. Palm olein is the mainstay of the dietary oil consumed in many parts of Asia. Palm olein which is available globally, contains 47 to 53 per cent oleic acid, which is also found in olive oil and other monounsaturated oils.
Several studies have shown that oleic acid has cholesterol-lowering properties equal to, or better than, those of polyunsaturates.1,2,3,4 

Frying food with palm olein
Palm olein , by virtue of its fatty acid composition and high content of vitamin E, is stable even at high temperatures. When frying food, nothing surpasses palm olein. It has a proven track record of stability during frying and hardly imparts any flavors of its own as it is a bland oil. Thus it is little wonder that food manufacturers around the world use palm olein as the preferred frying fat medium for food. Moreover, foods prepared in palm olein are more stable against rancidity than olive oil.

Red Palm Olein and Virgin Olive Oil: A Surprising Comparison
Not many people know that both olive and palm are the only two commercial, edible oils derived from the flesh (mesocarp) of the fruit. Thus, it is not surprising that there are many similarities in the methods of oil extraction as well as in their composition.
The olive, when processed under specific conditions, yields both virgin and extra virgin olive oils. Health food connoisseurs rate these oils highly, listing not only the health benefits of the fatty acid composition of these varieties, but also their high content of natural antioxidants, including polyphenols. It is increasingly being acknowledged that the benefits of olive oil, especially of the “virgin” varieties, may be due to the combination of all these factors.
The palm fruit has refused to play second fiddle to the olive. The outcome of an innovative processing technology was the “red palm olein”, a direct competitor to the green variations of virgin olive oil.
Red palm olein takes maximum advantage of nature's generosity — the highest source of natural carotenoids in an edible oil, high content of vitamin E, including the special vitamin E tocotrienols, coenzyme Q and a phytosterol complex. A wealth of nutritional information has been generated demonstrating the superior benefits of red palm olein against cholesterol, coronary heart disease and atherosclerosis as well as the possible anti-cancer effects of carotenoids.
For malnourished populations, red palm olein is a source of pro-vitamin A carotenoids which are proven to overcome vitamin A deficiency and the onset of night blindness in malnourished children.

Make your choice
As a consumer, the abovementioned facts must be considered and weighed before you make a choice. To summarise, palm olein has been found to be comparable to olive oil in terms of nutritional properties and is a surprisingly well-acclaimed product.
For many consumers, product affordability is an important determinant. At current market prices, olive oil commonly retails at five times that of palm olein. This being the case, why not make the more affordable choice - without compromising the health of your loved ones!

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