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CHAPTER 1
Introduction
1.0 Introduction
According Malaysian Palm Oil Board (MPOB), the oil palm tree (Elaeis guineensis jacq.) originates from West Africa where it grows in the wild and later was developed into an agricultural crop. It was introduced to Malaysia, then Malaya, by the British in early 1870’s as an ornamental plant. In 1917, the first commercial planting took place in Tennamaran Estate in Selangor, laying the foundations for the vast oil palm plantations and the palm oil industry in Malaysia. The cultivation of oil palm increased at a fast pace in early 1960s under the government’s agricultural diversification programmed, which was introduced to reduce the country’s economic dependence on rubber and tin. Later 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 the estate management system and smallholder scheme.
Today, 4.49 million hectares of land in Malaysia is under oil palm cultivation; producing 17.73 million tonnes of palm oil and 2.13 tonnes of palm kernel oil. Malaysia is one the largest producers and exporters of palm oil in the world, accounting for 11% of the world’s oils & fats production and 27% of export trade of oils & fats. The industry provides employment to more than half a million people and livelihood to an estimated one million people. The largest producer of palm oil in the world is Indonesia followed by Malaysia. Indonesia and Malaysia are the biggest exporters of CPO form as well refined. The largest buyer for Malaysian palm oil is China. While for Indonesia, India is the biggest market for it.
Palm oil is currently the second most important vegetable oil in the world oils and facts market, accounting for 14.35% of world production of seventeen major oils and facts, ranking only behind soya bean oil, which contributed 20.23% of world output. In terms of
Introduction
1.0 Introduction
According Malaysian Palm Oil Board (MPOB), the oil palm tree (Elaeis guineensis jacq.) originates from West Africa where it grows in the wild and later was developed into an agricultural crop. It was introduced to Malaysia, then Malaya, by the British in early 1870’s as an ornamental plant. In 1917, the first commercial planting took place in Tennamaran Estate in Selangor, laying the foundations for the vast oil palm plantations and the palm oil industry in Malaysia. The cultivation of oil palm increased at a fast pace in early 1960s under the government’s agricultural diversification programmed, which was introduced to reduce the country’s economic dependence on rubber and tin. Later 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 the estate management system and smallholder scheme.
Today, 4.49 million hectares of land in Malaysia is under oil palm cultivation; producing 17.73 million tonnes of palm oil and 2.13 tonnes of palm kernel oil. Malaysia is one the largest producers and exporters of palm oil in the world, accounting for 11% of the world’s oils & fats production and 27% of export trade of oils & fats. The industry provides employment to more than half a million people and livelihood to an estimated one million people. The largest producer of palm oil in the world is Indonesia followed by Malaysia. Indonesia and Malaysia are the biggest exporters of CPO form as well refined. The largest buyer for Malaysian palm oil is China. While for Indonesia, India is the biggest market for it.
Palm oil is currently the second most important vegetable oil in the world oils and facts market, accounting for 14.35% of world production of seventeen major oils and facts, ranking only behind soya bean oil, which contributed 20.23% of world output. In terms of
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