Introduction Global interest in sustainable agriculture requires a review of how the oil palm plantations have evolved in ensuring that palm oil is produced according to the set standards of responsible production practices. Many inherent advantages are already within the oil palm system of plant physiology of high productivity and efficient carbon assimilation. The oil palm is credited with its high oil yield per unit area. It produces two types of oils from the same fruit-palm oil from the flesh or mesocarp and palm kernel oil from the seed or kernel inside the hard-shell mesocarp.

The kernel also yields a residual product known as palm kernel meal, which is mostly used for animal feed. The two oils are extracted by careful separation at certain stages of the milling process. Palm kernel production is about 10% of the quantity of palm oil produced. The two oils have very different applications and market outlets. Palm oil is used mainly for food, while palm kernel oil goes mainly into the oleo chemical industry for making soaps, detergents and toiletry products. Many other biomass products generated by the oil palm plantations are often under-utilised commercially. Mills regularly generate large quantities of fibre type products….

How palm oil is produced In Malaysia, palm oil is produced on estates owned by plantation companies. They also often operate mills where the harvested fruit bunches are processed for oil extraction. Small farmers with varying sizes of oil palm holdings also produce fruits bunches. These are sold through dealers who send the fruit bunches to nearby mills for oil extraction. Over the years, the Malaysian oil palm industry has grown in size and participation, as shown inT ab. 1 which compares the performance of the various sectors. Investing in oil palm cultivation is along-term commitment. Estates usually have access to contiguous land area, often in excess of 2000 hectares at each location. This allows economies of scale to prevail and ensures that the management team is employed at an optimum level. It is pertinent to note that growth of the oil palm industry has….

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