This chapter discusses the economic importance of efficient palm oil recovery from palm fruits and palm kernel and source of oil loss along the processing chainroute both in modern and traditional methods. Pdf the economic importance of crude palm oil in nigeria. Coconut oil, from the seed of the palm coconut, cocos nucifera, is highly revered in asia as the tree of life or as the fruit of the gods. Despite all these the nigerian palm crude oil production and exportation is ranked 4 th in the world. Dec 20, 2015 the objective of the study is to first evaluate the relationship between palm crude oil production and nigerias economic performance and second determine the substitutability of palm oil for crude oil in nigeria. Guide to sustainable palm oil for singapore companies. Jan 01, 2014 the malaysian palm oil industry directly employs more than 600,000 people, including both highskilled and lowskilled labor. To identify the economic benefits companies stand to gain from a sustainable palm oil sourcing policy. Most 96% of palm oil production occurs on the island. It favors rural employment and is a crop that smallholder farmers can grow easily, often lifting people out of poverty in rural regions. The economic benefits of palm oil in papua new guinea. The economic importance of crude palm oil in nigeria by. The socioeconomic importance of the essential oil production. Economical and versatile, palm oil has become the worlds most widely used vegetable oil.
The importance of palm oil imports to the economies in which it is produced has been the subject of considerable study. The total is just less than twice the population of kuala lumpur. The economic importance of crude palm oil in nigeria. Though odor from oil palm processing is difficult to quantify. In 2007 export earnings from palm oil reached k640 million. Palm oil has become ubiquitous because it is the perfect ingredient for a number of growing industries, the perfect export for developing economies, and. Malaysias economic development has indeed been impressive by the contribution of the palm oil industry.
It is also used to treat malaria, high blood pressure, high cholesterol, dementia, and cyanide poisoning. Crude palm oil is used as a fat supplement and other oil palm derivatives such as palm kernel meal are used to supply other nutrition. Palm oil is one of the most profitable land uses in the tropics. Nigerias oncethriving palm oil industry is often cited as one of the most miserably failed economic opportunities in africa. Palm oil, obtained from the fruits, is used in making soaps, cosmetics, candles. Palm oil is part of a complex supply chain used in the production of a wide variety of products across major european industries like basf, ferrero and tesco, and throughout small and medium sized enterprises across the eu. The oil palm is one cash crops of this country which has greatly contributed to the economic development of nigeria. Trees and their economic importance 323 the banana tree plant has only a thick false stem pseudostem, which is not woody but made up of a central core of soft tissues concealed by the fibrous and sheathing bases of large leaves. From the study most of oil palm grow wild in the oil palm grows and have been exploited as such. According to the encyclopaedia brittanica, the coconut and african oil palms have important. Nigerias economic performance and second determine the substitutability of palm oil for crude oil in nigeria. Palm oil is used for weight loss and for increasing the bodys metabolism.
Hence, this feasibility study on small scale palm oil processing were conducted in elele, rivers state. The price band can determines by prices of petroleum. The fleshy layer of the seeds of macrozamia reidlei contain as much as 28% oil. For the main producing countries, palm oil can significantly contribute to national economies, driving rapid economic growth and contributing to the alleviation of rural poverty. Processing palm oil fruits for edible oil has been practiced in africa for thousands of years, and the oil produced, highly colored and flavored, is an essential ingredient in much of the traditional west african cuisine. An economic analysis of the malaysian palm oil market abstract the objectives of the study are to describe a national model of the malaysian palm oil market and to identify the important factors affecting the malaysian palm oil industry. Unripe plantain pulp cooked with water, meat or fish, palm oil, salt and various spices. In 1508 already reference has been made to palm groves in liberia, and to palm oil trade near the forcados river in nigeria. The palm oil prices should take into one account of two factors, the petroleum price and the amount of oil stocks. The health, environmental and economic benefits of palm oil. Feb 19, 2019 palm oil has become ubiquitous because it is the perfect ingredient for a number of growing industries, the perfect export for developing economies, and the perfect commodity for the globalised. The above facts strongly indicate the need to to the fact that palm oil could be a veritable source of diversify the economy.
In some parts of the world, these oils are used as those of palm oil. Oil palm, elaeis guineensis, african tree in the palm family arecaceae, cultivated as a source of oil. Study on the environmental impact of palm oil consumption. Strictly speaking, the banana plant is a giant herb. The downstream economic impacts of palm oil exports. Ii growth and production of oil palm willy verheye encyclopedia of life support systemseolss of trees appearing to be oil palms as early as 1434. The model is estimated by taking into account total oil palm area, oil palm yield, domestic consumption. Algebraically, if q defines national output, k capital palm crude oil is a very important part of a nations input, l labour input, n land input, e entrepreneurship.
A european commission study 20 estimates that between 1990 and 2008, 5. Sep 01, 2015 the economic potential of oil palm production and machineryuse in udi local government area enugu state, nigeria has been investigated. Before the advent of crude oil production in nigeria, nigerias main stay was agriculture and was dominated by palm crude oil production. Oil palm serves as a raw material for industry and a source of foreign exchange. An orange yellow oil is obtained from the seeds of cycas revoluta and a bright orange oil from the seeds of macrozamia reidlei. The importance of trade in palm oil to the economies in which it is produced has been the subject of considerable study. Specifically, it defines the output of goods and services as a function of the input of factors of production. Palm oil is obtained from the fruit of the oil palm tree.
The economic benefits of palm oil in papua new guinea march 2011 page 6 of 58 employment, export sales and government revenue resulting from the palm oil industry are high, and are expected to increase with greater industry growth. The oil palm is grown extensively in its native west and central africa, as well as in malaysia and indonesia. Because of its economic importance as a highyielding source of edible and technical oils, the palm. Ecological impacts of palm oil expansion in indonesia. Surveys by curran suggest that communities in west kalimantan are deeply concerned about flooding after the establishment of oil palm plantations. Once the oil palm firm gets the approval, it may negotiate on a oneonone basis with each household, eliminating any sort of bargaining power of the greater community. Social impacts of oil palm in indonesia a gendered perspective from west kalimantan occasional paper 124 tania murray li university of toronto center for international forestry research cifor. Because of its economic importance as an highyielding source of edible and technical oils, the oil palm is now grown as a plantation crop in most countries with. While its impacts on exporting countries are obvious, the scale and importance to importing countries are often neglected. The impact of oil on nigerias economic policy formulation preamble economic policy is the actionstatement of the government pertaining to particular sectors of the economy, describing the intended objectives and how to achieve them.
The importance of the palm oil trade to the malaysian economy was affirmed with the founding of the kuala lumpur stock exchange klce for price setting, hedging, and disseminating market information to reduce market risk in the trading of palm oil. Because of its economic importance as a highyielding source of edible and technical oils, the palm oil is. In many countries, the palm oil sector has a significant economic impact. The feed industry is estimated to account for around 5 per cent of total palm oil use in the eu. The economic importance of crude palm oil in nigeria by behrooz. In the light of the poor performance of the nigerian economy since independence despite the huge mineral, material and human endowment, as well as the accelerating dynamics of the global economy, this study was set out to examine the economic importance of palm crude oil production in nigeria. To engage and inform businesses on the importance of sustainable palm oil. Smallscale palm oil processing business in nigeria. Study on the environmental impact of palm oil consumption and on existing sustainability standards 2017 eur en report prepared by. The socio economic importance of the essential oil production sector1 while global agriculture is increasingly dominated by large scale industrial production, the production of most essential oils is still dominated by small farmer production, and as such makes an important.
Palm oil is also found in food for livestock and household pets. Palm oil is used for preventing vitamin a deficiency, cancer, brain disease, and aging. In nigeria, the palm oil industry employs millions of workers, while in guinea, liberia and sierra leone it is a major source of income and trade along the common border districts. Every part of the palm is usable for human needs food, shelter and fiber. Questionnaires, personal work and oral interview were used as means of information retrieval. Europe economics, july 2016 the downstream economic impacts of palm oil exports. The available food energy afe from plantains and other cooking bananas in some producing countries is shown in table 2 treche, 1997. To guide businesses through the process of palm oil sourcing conversion. Palm oil production is tainted by poor working conditions, lack of health and safety and low wages in many parts of the world. Economic potentials of oil palm production and machinery use. Ecological impacts of palm oil expansion in indonesia given that global land area for agriculture is limited tilman et al. Palm oil is an important asset for the producing countries.
Pdf before the advent of crude oil production in nigeria, nigerias main stay was agriculture and was dominated by palm crude oil production. Palm oil plays an important role in the global economy. This project work has assessed the palm oil production and its economic importance in edo state using nifor as a case study. It is hypothesized that palm crude oil production does not have any significant impact on economic growth in nigeria. Growth and production of oil palm encyclopedia of life. Palm oil provides a substantial contribution to the european economy. However, its production comes at a heavy environmental cost, especially in indonesia and malaysia, the two main producers. Most of this production 89 per cent comes from indonesia and malaysia see figure 11. The methods use for collecting data from their workers were questionnaire and oral interview. An economic analysis of the malaysian palm oil market. Despite all these the nigerian palm crude oil production and exportation is ranked 4th in the world. Slices of unripe or ripe plantain pulp fried in palm oil or other vegetable oils. While it may have some health benefits, its production has major environmental and ethical concerns.