27 August 2014 , 12:14 WIB | Read : 947 | By : Lalang Buana

Palm oil, like soybean, rapeseed, sunflower, cottonseed and other kinds of vegetable oil are triglyceride which bond three fat acids.

Fat acid which arranges the main vegetable oil is generally the same but in differen composition. This condition make the substitution ability among the vegetable oil is big enough so it matters one to another.

Seeds oil, such as, soybean, rampak, the main production is oilcake. This make the price of meal or other factors influencing the meal will also influence the vegetable oil, including palm oil. Most of kinds of vegetable oil are used to food and the population and buying become the determiners which influence the price. Kinds of vegetable oil are used as the ingredients substitutions which derive from petrokima and also substitute the fossil fuel. These factors also influence the price of kinds of vegetable oil. The coherence of the factors influencing the price of palm oil is described in Picture 1.

The partnership farmers, the calculation of the fruit price is based on the Regulation of Secretary of Agriculture No 14 / 2013 about the Guidance of Buying Price of Palm Oil Fruit of Planters. Basically, the calculation of fruit price is the local selling price and product export, that is, CPO and Kernel Oil minus all costs. (Picture 2). Knowing the principle, the partnership farmers do not only sell the fruits but also enjoy the added values from the fruit cultivation to be CPO and kernel and they also know the market and international price.

Have Seasonal Pattern

The price of palm oil in the world is fluctuative (Picture 3) with the seasonal pattern as described in Picture 4. It shows, based on 2010 -2013 in November – May, the price of CPO was generally beyond the highest price in February – April.

On June – October, the price is under the lowest price on October. In the cold season, the consumption of fat and oil, especially in the sub-tropical region increased and this made the price of fat and oil on November – May, including palm oil, beyond the average. While in hot season (June – October) there was decreasing demand on fat and oil. This made, the price of fat and oil, including palm ol also decreased.

The Balance of Local Supply-Demand

The price of partnership farmers which is made by Fruit Price Extablishment Team in every province will have the same pattern. If the pattern of the price is compared to the pattern of the production,

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