Editorial

PRO SUSTAINABLE PALM OIL

03 June 2017 , 06:12 WIB | Read : 134 | By : Ignatius Ery Kurniawan

IT HAS NO END IF TALKING ABOUT NEGATIVE ISSUES ABOUT PALM OIL AND DERIVATIVE INDUSTRIES. THE UPSTREAM INDUSTRIES OR PALM OIL PLANTATIONS KEEP DEVELOPING AS SAME AS THE INCREASING CRUDE PALM OIL (CPO) PRODUCTION. ON THE OTHER HAND, MANY REGULATIONS WHICH REQUIRE THE SUSTAINABLE CPO PRODUCTION REALLY SUPPORT THE PRODUCTION.

The condition which is profitable to CPO and derivative industries becomes the boomerang for the competitor industries. As part of world vegetable commodity, CPO has become the main ‘primadona’ as the safest vegetable oil, and most efficient product to be used in the food and non –food oil.

It is no question if most of the derivative vegetable oil industries operating in many countries always use palm oil as the alternative material. It is ready to be used if the material from soybean and rapeseed have production disturbance or have drastically expensive price.

The CPO and derivative product as the alternative materials get wider to use since in the midst of 1990s. The world crude oil price was the trigger to have more expensive vegetable oil. It was fundamental reason for the stakeholders that vegetable oil is important as the alternative material when the crude oil is drastically expensive.

Through the pattern of alternative material, the security of the material supply for the derivative industries of the crude oil should be safe and controlled. Slowly but sure, the crude oil, vegetable oil and derivative trades harmonize the trade connection and the potency so it makes the bond of net trade.

Of course, vegetable oil, such as, palm oil is the most beneficial one because of the net trade. The bargaining position of vegetable oil is the main thing for it has most production of every kind of vegetable oil. Still in the midst of 1990s, palm oil has been the king of vegetable oil.

The superiority of palm oil derives from the harvest result. It is more efficient than the other. As a description, one hectare area to plant palm oil could produce 30 tons of fresh fruit bunch (FFB) or equivalent with 4 – 6 tons of CPO.

Compared to soybean in the same area, it could produce 3 tons only. . . . 

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