- Introduction
Palm oil commodities that have various uses for both food and non-food industries. Its development prospects are not only related to the growth of demand for vegetable oils in the country and the world, but also related to the development of other vegetable oil sources, such as soybeans, rape seed and sunflower. The description of the share of world vegetable oil production and consumption can be followed in the following table.
Table 1. Share of World Vegetable Oil Production and Consumption
Cotton oil, m. peanuts, m. sunflower, m. sesame, m. corn, m. olive, m. distance, and m. rape seed
Source: Processed from Oil World
Table 1 shows that from the period of 1998-2001 the production of vegetable oil is less than the world consumption of vegetable oil world so it is estimated that the price of vegetable oil will increase. When viewed for each commodity, it is found that high consumption growth occurs mainly on three types of vegetable oils, namely soybean oil, palm oil and rape seed. However, from the period 2003-2007 the share of palm oil consumption surpassed the share of soybean oil consumption, sunflower oil and rape seed oil. The condition is expected to continue until 2020.
In terms of competitiveness, palm oil has competitiveness that is quite competitive compared to other vegetable oils, because: (a) Productivity per hectare is high; (b) Represents a sufficiently reliable annual crop for various agro-climate changes; and (c) Viewed from the nutritional aspect, palm oil is not proven as a cause of increased cholesterol levels, even containing beta carotene as a pro-vitamin A.
Competition in the palm oil trade (CPO) is actually only happening between Indonesia and Malaysia. Nigeria as the number three producer allocates more of its production to meet domestic needs. Malaysia, which is the largest producer and exporter lately, has consistently processed its palm oil so that its export volume in the form of palm oil (CPO) is expected to begin to be contained. The limitation of suitable land and high wages, will also restrain the expansion of the area in Malaysia so that it will slow the pace of exports. On the other hand, Indonesia as the second largest producer and exporter country has an opportunity to increase its exports. Indonesia is known as the most efficient country in producing palm oil so that CPO Indonesia is very competitive in the international market. With its relatively wide availability of land, Indonesia has the opportunity to increase production so as to spur export growth. However, as the level of domestic consumption is still increasing rapidly, the rate of increase in exports appears to be also hampered.
Aside from being a source of edible oil, palm oil derivative products are still many benefits and highly prospective to be further developed, among others:
CPO derivative products. CPO derivative products in addition to edible oils can be produced margarine, shortening, Vanaspati (Vegetable ghee), Ice Creams, Bakery Fats, Instance Noodle, Soap and Detergent, Cocoa Butter Extender, Chocolate and Coatings, Specialty Fats, Dry Soap Mixes, Sugar Confectionary, Confectionery Cream Fats, Filled Milk, Lubrication, Textiles Oils and Bio Diesel. Especially for biodiesel, the demand for this product in the next few years will increase, especially with the application of policy in some European countries and Japan to use renewable energy.
Palm Oil Cover Product. From palm oil derivative products can be produced Shortening, Cocoa Butter Substitute, Specialty Fats, Ice Cream, Coffee Whitener / Cream, Sugar Confectionary, Biscuit Cream Fats, Filled Mild, Imitation Cream, Soap and Detergent, Shampoo and Cosmetics.
Product of Oil Palm Oleochemicals Derivatives. From palm oil derivative products in oleochemical form can be produced Methyl Esters, Plastic, Textile Processing, Metal Processing, Lubricants, Emulsifiers, Detergents, Glicerine, Cosmetic, Explosives, Pharmaceutical Products and Food Protective Coatings.
From the description can be said that the prospect of oil palm is still very wide, not only for the fulfillment of the needs of oil meal, but also for the needs of derivative products. To further improve the competitiveness of palm oil products and their derivatives to be more competitive, integrated handling from planning activities, on-farm activities, off-farm, support facilities and infrastructure and supporting services is needed.