Techno- economic aspects of palm

Transcription

1 Techn- ecnmic aspects f palm kernel il T.'- Pntzari I'I.J. Ahmd This article is by T.P. Pantzaris and Mhd. jaaffar Ahmad, Malaysiall Palm Oil Bard (MPOB) Eurpe, Brickel/dl/bury, Hertfrd, SGl3 8NL, England. Artwric prvided by Malaysin /'!:lim O~800rd Palm Kemel Oil In the wrld f ils and fats, the lauric ils are the aristcrats. There are very few f them, they mve in their wn higher price plateau, and they d nt mix cmfrtably with the cmmn ils and fats. Amng the 17 majr ils and fats in wrld trade, there are nly tw lauric ils--ccnut il (CNO) and palm kernel il (PKO) (I). They are called "lauric" because lauric acid is the majr fatty acid in their cmpsitin at abut 50%, whereas n ther majr il cntains mre than abut 1% (butter fat cntains 3%). ORIGIN PKO is very similar t CNO in fatty acid cmpsitin and prperties. The tw trees als lk rather similar and bth are called palms, but they belng t different genen. Ccnut palm is Ccs nuciiera, while the il palm that gives bth palm il (PO) and PKO is Elaeis guineensis (2). The latter tree is generally believed t have riginated in the jungle frests f East Africa. There is sme evidence that palm il was used in Egypt at the time f the Pharahs, sme 5,000 years ag (3), but nw its cultivatin is cnfined mstly t Sutheast Asia. The variety cultivated in nearly all f the wrld's plantatins is the hybrid Tenera-a crss between Dura and Pisifera-which gives the highest yield f il per hectare f any crp. The ecnmic efficiency f the il palm is clear frm the fllwing simple calculatin. Sybean cultivatin in the United States, fr example, yields abut 2.5 metric tns (MT) f beans per hectare (1 hectare == 2.47 acres), which translates t abut 0.5 MT f il and 2 MT f meal. The mnetary value f a rn f the meal is abut half that f the il, therefre, the ttal incme t the farmer " is equivalent t 1.5 MT f il. In Sutheast Asia, il palms yield abut 4 MT f PO, plus 0.5 MT f PKO, plus 0.5 MT f palm kernel meal, with a ttal value equivalent [Q mre than 4.5 MT f il. Rughly fr every 8 MT f crude PO prduced at the mill, abut 1 MT f PKO is prduced. The palm fruit lks like a plum. The uter fleshy mescarp yields the PO while the kernel, which is inside a hard shell, is the surce f PKO. It is rather strange that tw ils frm the same fruit shuld be entirely different in Farry acid cmpsitin and prperties. Unfrtunately, the tw ils ften were cnfused by nutritinists in earlier days. In PO msr f the fatty acids are C 1 6 and higher, while in PKO, they are C 14 and lwer. PO has a minimum idine value (IV) f 50, while PKO has a maximum IV f 21 (4). Semislid in temperate climates, PKO can be fractinated int slid and liquid fractins knwn as stearin (PKS) and lein (PKO), respectively. The fractins are then physically refined, bleached, and dedrized r chemically neutralized, bleached and dedrized t give the refined, bleached, dedrized (RBD) and neutralized, bleached, dedrized (NBD) grades used in the fd industry. The fractinatin can be dne either befre r after the refining, accrding TO circumstances. PRODUCTION AND EXPORTS The il palm nly grws well in trpical climates, and s all the palm kernel-prducing cuntries are in Sutheast Asia, sub-saharan Africa, and Suth America, as are all the prducers f the il (I). Figure 1 shws the prductin and exprts f the tp fur prducing cuntries. The largest prducer by far is Malaysia, which accunts fr mre Vlume 12 January 200 I Infrm

2 Palm Kemel Oil tzee S Prductin Exprts FIIU"' I. Palm kemel il prductin and expru in 1999 (thusand metric tns) than 50% f wrld prductin. Tw cuntries, Malaysia and Indnesia tgether; accunt fr abut 80% f prductin and 90% f exprts. N ther cuntry prduces mre than 8% r exprts mre than J% f the wrld ttal. Until the mid-1960s, Nigeria was the wrld's largest prducer f palm kernels, bur Eurpe did mst f the crushing and was therefre effectively the wrld's largest PKO prducer. Nw all the crushing is dne in the prducing cuntries and n palm kernel crushing ccurs in Eurpe. Since the mid-1960s, Malaysia has Table I Fatty acid cmpsitin f palm kemel, ccnut, V1d pa.jm ils, me;an nlues (") Fauy acids C, C, C'0 C" C" C" CIS CIS:I C18:2 Others I'alm kernel ip I.' ' 0.1 Ccnulil b s.s ,. 2.7 '.4 I., 0.1 Palm il c d a PORIM Survey 1984, " s 68. b Leatherhead Fd RA. Surrty, United Kingdm, Survty n '" 35. ~ PORJM Survty f RHO [refined, bleached, dedrized) palm il 1989, n 244. d -es- = CIS:3, 0.37%; C20:0, 0.38%. been the wrld's biggest prducer and exprter f PKO. Hwever, in recent years her lechemical industry has been using very large and increasing quantities f PKO. Therefre Malaysia's exprts have been reduced. In fact, in 1997, Indnesia's PKO exprts surpassed Malaysia'S. With PKO and CNO having very similar prperties and cmpeting with each ther in wrld markets, their relative prductin vlumes and grwth rates are imprtant. Oil Wrld, a market newsletter frm ISTA Mielke (Hamburg, Germany), has sme interesting srarisrics n PKO since the earliest days f its prductin. In 1970, fr example, wrld PKO prductin was abut 390,000 MT r less than 17% that f CNO, which std at 2.3 millin metric tns (MMT). Hwever, PKO, being a c-prduct f PO, has been grwing at a much faster rate- 6.5% annually against 1.1 % fr CNO-and the respective prductin vlumes in 1998 were 2.2 and 3.2 MMT. (The 1999 figure fr CNO is lwer than fr 1998 but is nt typical). By the year 2015, the frecast is that PKO will vertake CNO with 4.6 MMT against 4.4 MMT (S). COMPOSITION AND PROPERTIES The majr fatty acids in PKO are C12 {lauric acid), abut 48%; Cl4 (myristic acid), abut '16"/0; and C I 8:! (leic add), abut!5% (4). N ther fatty add is present at mre than 10%. It is this heavy prepnderance f lauric acid that gives PKO and CNO their sharp melting prperties-slid cmpsitin at rm temperature paired with a lw melting pint (6). This is the utstanding prperty f lauric ils, which spurs their usc in the edible field and justifies their usually higher price cmpared with mst ther ils. Because f their Vlume 12 January 200I Infrm

3 71 Ccnut p~m (left) and il palm (right) ;ue bth tl"oph:illly Crwn surces f edible il. lw unsaruratiun, the lauric ils are als very stable against xidatin. Table I shws the Iatry acid cmpsitin f PKO, its similariry t eno, and their differences frm PO, the c-prduct f PKO. Even after full hydrgenatin, the melting pint f PKO des nr rise much abve muth remperarure, fractinatin gives a stearin which is even sharper-melting. Sharp-melting fats leave a clean, cl, nngreasy sensatin n the palate, impssible t march using any f the cmmn nnlauric ils. Cca butter and palm mid-fractin (PMF) are cmparable t the lauric ils, but they arc much mre expensive and PMF is a manufactured (fractinated) fat and nt a majr il in glbal cmmerce. The best methd fr assessing the sharpness f melting f a fat is rganleptically by a trained panel r, even better, by an utstanding individual. Hwever, the infrmatin thus btained cannt be cmmunicated r g 100t------;==~:---- STred in quantitative terms and s, fr rhnr purpse, the slid far cntent (SFC) values at varius temperatures +-_~~I<..-=:s..---,-----:c-=-----; PO c G.I -----pko "ee 120, ~",""-----'-\-\-----l>- CB.; -*-'PKS :!! <>- HPKS35 "0 II! ~~~-, Tempera.ture ("C) Figure 2. Slid fat cntent f palm it (PO), pillm kernel 011(PKO), eea butter (CB), palm kernel steill"in (PKS), and hydrgenated palm kernel stearin (HPKSlS). Data frm Malaysian milflufactu""n;. Vlume 12 JilflUilry 200 I Infrm

4 Palm Kemel Oil 72 Table 1 HAla,stan standard. fr palm kernel il (PKO). PK stearin, and PK feln Idine value (Wijs) Slip melting pinl ("C) Fany acid cmpsilin!%)d 6,0 8:0 10:0 12:0 14:0 16:{1 18:0 18:1 18:2 Others Slid fal cntent (%) NMRd 50C IO"C I50C 2O"C 250C 3O"C 35"C PK SIUrin" I " 33 _~ ft. ~~,MS 1417,1"3 b ft. 118,MS 81)'\~S7 <".52. MS 36,1"' d Value. ar<" n fr I'KO.nd md-.,..ir PI:... "" nd PI( lein. 1lIex.. I... 1>0 bftn,undd '0 th<... 1UI 0.5. rnce",_...y!>of ""'" 01""t "'...d... N'\lR. n""!rn... are used. Figure 2 shws the melting behavir in Terms f SFC values f J>KO, PKS, and hydrgenated PK$ melting pint 35 C (HPKS 35), tgether with cca butter (CB) and PO fr cmparisn. The data fr the graphs are average values btained by us frm Malaysian manufacturers' specificatins. Althugh nly Three basic prducts are made frm PKO (PKO itself, PKO, and PKS), their hydrgenated and blended versins cmplicate the picture cnsiderably. The simplest way t distinguish between them is frm their IV/slip melting pint (smp) relatinships. An almst cmplete characterizatin can be made by examining als PKb PK lan c their SFC prfile and fatty acid cmpsitin. The characteristics f PKO, PKS, and PKO are cvered by Malaysian standards (7-9) which are based n the results f large and detailed surveys cnducted by the Palm Oil Research Institute f Malaysia (PaR 1M), with specimens taken directly frm prcessing plants and bulking installatins thrughut Malaysia. Table 2 gives imprtant values frm the latest Malaysian standards and fr fatty acid cmpsitin and SFC. Fr the sake f clarity, the mid-range values runded (Q the nearest 0.5 are given. One pint wrth mentining is that the Malaysian standards are set frm the results f large detailed surveys carried ut by PORJM at regular intervals. They are based n a slid, scientific, and verifiable fundatin. Als, many Malaysian standards give nt nly the sample fanges but als the mean, standard deviatin, and sample size; in this respect als they are mre useful than mst thers. It is well knwn frm elementary statistics [hat the sample range is a crude and inefficient measure f variability, while with the standard deviatin and the mean, ne can calculate statistical ranges, esrimare the prbability f any particular deviatin and carry ut many ther statistical tests. Frm Table 2 it will be nted that the Cl2 cntent is highest in the stearin and lwest in the lein. The level f this fatty acid is therefre an imprtant index f fractinatin efficiency and f the quality f the prduct. The differences in the melting prfiles are bvius. In practice, rwc qualities f PKS are prduced: ne with an TV f 6-8 and smp abut 3 I-33 C, and the ther hydrgenated t IV belw 2 and smp abut C. Prprietary brands may be based n blends f the tw and als may cntain" emulsifiers fr enhanced perfrmance in particular applicatins. Hydrgenated PKO can be made t resemble the SFC prfiles f PKO and hydrgenated PKO, but the SFC curve will nt be quite as steep, the C 12 cntent will be lwer, and the muth feel will be a little inferir. It is wrth nting that with PKO (cntrary t PO), the mst valuable prduct is the stearin and the least valuable ne is the lein. By blending the basic PKO prducts (il, lein, and stearin) in different prprtins, hydrgenating t different melting pints, r inreresrerjfying, a large number f graduated specialty Vlume t2 January200I In'rm

5 7J Oil palm fresh fruit bunches are harvested; as trees grw taller, h;u-. vesting becmes mre difficult. prducts that ffer different perfrmance/cst cmbinatins can be made fr the same end uses. A nte n health aspects may be apprpriate here. PKO is abut 82% saturated, which is higher than the majr liquid ils such as sybean, which is nly 16% saturated, r sunflwer, which is 12% saturated (4). Nutritinally, this may be thught f as a disadvantage, but such a cnclusin may be misleading. Lauric ils are nly used in fds where a sharp-melting slid fat is needed. When liquid ils are hydrgenated t a similar cnsistency, they nt nly becme mre saturated but als frm trans fatty acids, which sme recent studies have shwn may be even mre bjectinable than the saturated fats in regard t bld chlesterl prfiles (10,11). Anther cnsideratin is that, because f their higher price and special prperties, the lauric ils are used nly where clearly necessary and s are used fr edible prducts at very lw levels. In the United Kingdm in 1999, fr example, annual per capita disappearance (use fr all purpses including lechemicals, sap, and waste) fr bth lauric ils cmbined was 2.2 kg against 34 kg fr the nnlaurics (Oil Wrld 2000) {I}, and s the amunt used fr edible purpses is prbably belw 2 kg. Malaysian PKO bught frm rigin is usually traded accrding t the Malaysian Edible Oils Manufacturers' Assciatin (MEOMA) (12) r the Federatin f Oil, Seed, and Feed Assciatins (FOSFA) (13) specificatins. The same bdies als set the trading specificatins f the rher majr prducts derived frm palm kernels, such as palm kernel meal, PKS, PKO, and palm kernel fatty acids. The MEOMA specificatin values, in the sequence free fatty acid (FFA) cntent (as lauric), misture and inslubles, IV (Wijs), and Lvibnd clr (5 inch) are as fllws (all are maximum values): Crude PKO: 5.0%, 0.5%, 19, nt specified; RBD PKO: 0.1 %, 0.1 % '19, 1.5 red; RBD PKS: 0.1 %,0.1 %, 8, 1.5 red. Vlume 12 January 200 I Infrm

6 Palm Kernel Oil USES OF PItO H3I,...,est fresh fruit bunches _a.iting prcessing. Because f their similarity in cmpsttin and prperties, PKQ has similar uses t CNO in bth the edible and nnedible fields, but sme small differences are wrth nting: PKO is mre unsaturated and s can UYIII,ma...\C1$ Kntlarnatu '.) 1 be hydrgenated t a wider range f prducts fr the fd industry, while CNO has a smewhat greater cntent f the mre valuable shrter-chain Farry acids, which make it usually a little mre attractive t the lechemical industry. A singie fnlitlet frm an il palm fresh fruit bunch is slighdy sm3llier than 31m3ltch bx. PKO and its hydrgenated and fractinated prducts are widely used either alne r in blends with ther ils fr the manufacture f cca buner substitutes and ther cnfectinery fats, biscuit (ckie) dughs and filling creams, cake frstings, ice cream, imitatin whipping cream, sharp-melting creaming and table margarines, and many ther fd prducts. Specialty {ats----cca butter sllbstitutes. Specialty fats are used widely in the fd industry fr applicatins where specific physical and chemical prperties are imprtant. Fr this reasn, the requirements placed n these fats are different frm thse n general purpse ils. Mst cnfectinery prducts, fr example, have a high fat cnrern, and as a result the meltdwn in the muth is critical. One f the mst imprtant classes f specialty fats is that f cca butter substitutes (CBS), fr which the standard f cmparisn is cca butter (6,14). These can be divided int tw basic types, lauric and nnlauric. These fats musr have a very steep SFC prfile and melt in the apprpriate temperature range. The nnlauric type ils rely n a high cntent f trans fany acids, while the lauric type ils rely n high cntent f lauric acid-here we exclude the cca butter equivalents (CBE), which frm anther class with smewhat different uses. The physical prperties f PKS clsely resemble thse f cca butter. It is generally accepted that the best types f CBS, as ppsed t CBE, are made frm this fat. Substantial quantities f PKQ are therefre fractinated fr this purpse in Eurpe, the United States, and Malaysia. Ccnut stearin, n the ther hand, while having exceptinally sharp melting prperties and muth feel, has a lwer melting pint, is Vlume 12 January 200 I infrm

7 75 btained at lwer yield, and is used fr nly a few prducts. Hydrgenated PKS f smp abut 35"C has even higher SFC than cca butter at 20"C. HPKS 35 tlerates the sftening effect f full-cream milk pwder and gives high cntractin n cling. These prperties make it especially suitable fr hllw mlded "chclate" cnfectinery uses, such as Easter eggs, mlded bars, and the finest biscuit creams. Hydrgenated PKO (HPKO) prducts with and withut inreresrerificarin, f smp 30-38"C (accrding t climate), are used fr their lwer COSt, but their SFC prfile is flarrer and they are definitely f lwer quality than PKS. Nevertheless, mst substitute chclate fr biscuit cating and cakes is made frm these fats. Even lwer-cst cating fats and filling creams are made frm hydrgenated PKO (HPKO). The SFC prfiles f sme cnfectinery fats are shwn in Figure 2. Filling creams. These prducts are essentially made f sugar, milk pwder, and fat with a fat cntent f abut 24-28%. The finest creams fr biscuits (ckies), wafer fillings, and cakes are made frm PKO r CNO srearins but they are nly used in luxury brands. In the vast majrity f cases, they are made frm PKO, PKO and their hydrgenated versins. Imprtant cnsideratins here are adhesin t the biscuit (ckie) shells and rate f setting. Lauric fats, because f their shrter chain length, set faster than nnlauric nes and s the freshly made cream biscuits (ckies) in a factry can be transprted n cnveyrs, handled, and packed withut cming apart r sliding ff-center. Tffees and caramels. These prducts are very similar and essentially cnsist f biled sugar and glucse, bur they always incrprate sme far in their frmulatins in rder t adjust their texture, hardness, chewiness, and richness f taste. Fat als reduces stickiness n wrapping materials and delays sugar inversin during strage (15). The fats used are usually based n HPKO r HPKD, because f their sharp-melting prperties and lng shelflife. Incrprating sme PKS in them gives even better quality. Ice cream substitutes. PKO and CNO are the best fats fr nndairy ice cream because f their cmbinatin f high SFC at abut WC, lw melting pint, and perfectly bland taste (16). Similarly, CND and PKD are used t make the chclate fr dipping ice cream. This chclate is made by diluting standard chclate with extra fat. The prduct must have lw viscsity and yet set quickly s that the ice cream des nt melt and drip int it. The peratin is quite finely balanced. Variety f bilked gds made with p..lm 011 Crss-sectin f 011palm fnlidet shws p..lm il kemelln the middle, which is the surce f palm kernel il; palm il Is pressed frm the fleshy pulp surrunding the kernel. Vlume 12 January 2001 Infrm

8 Palm Kemel Oil 76 Abve: "SOilp ndles" made with palm kernel il Belw: Sap IlIld deter)ent prduc:u pl"oduced usin, palm kernel 011 Imitatin whipping creams. This prduct is very critical in its rat requirement because it must whip quickly t a high vlume and hld that vlume with little shrinkage r seepage. Pure HPKO, PKS and their blends are the standard fats used. Nndairy creamers (cffee whiteners). These pwder prducts have a very large surface area and yet are required t have lng shelf lives. HPKO and CNO are the mst suitable fats because, when reduced t an IV belw abut 2, they exhibit extremely high xidative stability and yet retain a reasnably lw melting pint. Mst f the leading internatinal brands are made with HPKO. Filled milk. This is a widely used prduct in which the milk fat has been replaced by vegetable fat. In many respects it is similar t nndairy creamers, but with a lwer fat cntent. CNO has been the traditinal fat used because f its high stability and lw melting pint. but increasingly CNO is being replaced by PKO r PKO, when there is a price advantage. Margarines. Special margarines that whip easily t prduce light filling creams fr use in layered cakes and ther bakery prducts rely n high levels f lauric fat t cnfer gd eating and handling prperties. Other general-purpse and table margarines ften cntain PKO r HPKO t prvide quick melting prperties r cmpensate fr the use f ther higher-melting fats. In the United Kingdm, fr example, gvernment statistics shw that in 1999, the average PKO inclusin in margarines was 8.8% (20% in shrtenings), and a recent study n table margarine in Spain has fund that table margarines based n high levels f lauric and palm fats had much lwer trans fatty acid and higher plyunsaturated cntent than the ther margarines made frm blends f partially hydrgenated and nn hydrgenated seed ils (16). uses NONFOOD MS( f the PKO frm wrld prductin is, f curse, used fr fd, but the nnfd uses are very substantial and becming f increasing imprtance because, n the whle, these prducts are further dwnstream and ffer grealer added value t the prducers and greater pprtunities fr lcal emplyment. Als, their wrld markets are easier t penetrate since they d nr depend n natinal tastes and subjective preferences. The main nnfd uses fr lauric ils are sap and certain lechemicals, e.g., Farry acids, fatty acid methyl esters, and fatty alchls. Strictly speaking, sap itself is an lechemical, prbably the ldest ne, bur it is usually classed separately since it has entirely different appearance, uses, and market. Sap. Many different ils can be used fr sap making (18) but a prprtin f lauric il is indispensable. Gd sap must cntain at least '15% lauric il fr quick lathering. Saps in Western Eurpe and the United States typically cntain 20-25% PKO r CNO, while sap made fr use in seawater is based n virtually 100% lauric il. Lauric ils cnfer hardness, cmbined with gd slubility (which in ther fats are inversely crrelated), quick lathering, and a feel f quality (Q sap, while their higher resistance t xidatin helps delay the deteriratin f the perfume, which is a very majr cnsideratin in tilet sap. CNO has been the traditinal chice fr this applicatin, but nw PKO is used interchangeably with CNO accrding t price and in fact Vlume 12 J;anuOlry2001 Infrm

9 77 T... ' Sap-mln. prpertl" f different il, iiild f.t.ts" Fats Clr f rhe wd resulting Cnsislmcy Lathering a~aning Actin ils sap f sap qualities pepenle 00 skin Applicatin PKO White TO Very hard Quick but Fair Biting Laundry and pale yellw nnlasting husehld CNO WhiltlO Very hard Quick but Fair Biting Tilet and pale yellw nnlasting laundry; shaving Palm Pale yellw Hard Slw but Very gd N actin Laundry and stearin lasting husehld RBD Whitt Fairly hard Slw but Very gd N actin Tilet and PO lasting gd-qualiry laundry Tallw White Fairly hard Slw but Very gd N actin Tilet and lasting gd-qualiry laundry Crrn- Buff 10 Medium sft Quick and Gd N actin Husehld and seed 0< white medium laundry grundnul lasting Rsin Brwn Sfr and Thin and Medium N actin Husehld and sticky greasy tilet ~ Arncrnkd T.blt frm Ifr,kh., A. POIIIM T«hnlsY N. 2 PII. 7 (1~81). with sme subtle advantages. Table 3 gives a brief summary f the sapmaking prperties f sme fats. These prperties fllw frm the fatty acid cmpsitin f the fats. Palmitic and stearic acids cnfer hardness, lwer slubility, and slwer, thugh mre persistent, lather. The saturated shaner-chain Ct2 and lwer fatty acids cnfer hardness with greater slubility and quicker thugh less persistent lather. Hwever the very shrt fatty acids C6-ClO can als be irritating t sensitive skins and s their level must be kept very lw. This is the advantage f PKO ver CNO. Myristic acid is usually cnsidered the ideal sap-making fatty acid in its cmbinatin f prperties, but it is nt very plentiful in nature. Nevertheless, PKO and CNO cntain mre f it than any ther f the cmmn fats and it may be wrth nting that a blend f Cn/C16 fatty acids has an average mlecular weight equal t C H. Of particular interest t cmmercial sap makers will be PKO, which has a similar fatty acid cmpsitin t PKO and yet always sells at a discunt t it. MPOB experiments as well as industrial experience have nw cnfirmed that it can replace PKO withur any nticeable difference. Malaysia has a sap-making capacity f abut 230,000 MT per year, mst f which is exprted in the frm f "ndles." This prduct ffers sme ecnmic advantages t sap prducers, especially thse cntemplating expanding present plants r entering prductin fr the first time with limited capital availability. Prductin f sap frm ils and fats requires large capital expenditure n heavy equipment such as steam bilers, biling kettles, strage tanks fr ils and caustic sda, glycerine cncentratin plant, etc. Prductin f sap frm ndles, n the ther hand, requires nly simple mixing with clr and perfume, tableting, and wrapping. Besides sap made frm ils and fats (triglycerides), anther majr prcess uses the fatty acids f the same fats. This rute ffers the advantages Vlume 12 January 200 I Infrm

10 Palm Kemel Oil 78 f greater simplicity, lwer capital expenditure, and better cntrl f the qualiry f the feed stcks. Hwever, fatty acids are mre difficult t transprt and Stre in bulk withut deteriratin. Yet anther prcess is ne utilizing {any acid methyl esters, which vercmes mst f the prblems assciated with fany acids. It has fund particular favr in japan where sap quality is very high, and deserves better attentin wrldwide. Fr sap makers, the chice f prcess will depend n the scale f peratin, availability f raw materials, their relative csr, markets fr the byprducts, and capital expenditure envis- aged. In the end, the sap must cntain the apprpriate level f PKO r CNO farty acids. Olechemicafs. The mdern lechemical prducts based n fatty acids and their derivatives are f increasing impnance t il-prducing cuntries because lechemicals prvide an additinal utlet with higher added value. They are als f increasing imprtance t the buying cuntries because they are made frm "natural" surces and bidegrade mre easily than thse derived frm petrleum. In Malaysia, fr example in 1999, abut 780,000 MT, r 50%, f its PKO prductin was used internally, mstly fr lechemicals and sap. The basic lechemical prducts made frm lauric fats are the shrt- and medium-chain fatty acids (C8-C14)' their methyl esters, and the fatty alchls, which are made by hydrgenatin f the esters. PKO and eno cmpete directly in this area where they are even mre interchangeable than they are in the edible field. In recent years, there has been a tremendus shift in lechemical prductin frm Eurpe and Nrth America t Surheasr Asia and frm eno t PKQ. Frm published statistics, fr example, it is evident that since 1990 nearly all the wrld expansin has been in Sutheast Asia which has risen frm 12% f wrld ttal capacity t 35% (see Table 4). Omega-3 Frtificatin ~",M Heart Health Brad Applicatins Maintain Flavr Prfile Gd health and taste with 0mege-3 fd il and pwder. Intrducing tw new ways t make fds mre appealing. S yu can nw put the heart healthy benefits f Omega-3 int mre f yur prducts withut altering the taste prfile. Put Yu'll als prfit frm ur hands-n technical supprt and extensive cnsumer market research. That's mre than fd frtificatjn: It'S a new way f thinking. designed t help yur prducts and business becme healthier. T fearn mre. call Rche et r cntact us VIa atrviusa.marlc.eting@rche.cm. Vitamins He a l t h i er t h i n k i n g"

11 " In The Philippines, a large lechemical industry is based n CNO. In Malaysia, there is even greater prductin based n PKO. In Malaysia, the grwth f the lechemical industry has been spectacular. The first lechemical plant was built in 1979, prducing palm kernel fatty acids and glycerl. Currently the Cuntry has an annual prductin capacity f 650,000 MT f fatty acids, 175,000 MT f methyl esters, 175,000 MT f Iatry alchls, 120,000 MT f glycerine, and 230,000 MT f sap. T;able " Prductin f bulc lechemlcals: Sutheast Asia and the wrld (1,000 T) Cuntries Malaysia Philippines Indnesia Thailand Sutheast Asia Others Wrld prductin Sutheast Asia % f wrld " Frecast S ,,% Surce: PORIM (Palm Oil Research Institute f,\hlaysia) S S % 2_ % PRICE RELATIONSHIPS The distinctin between pure science and technlgy is nt very clear t mst peple, but the main difference is prbably that the latter is cncerned with making prducts that must be sld against cmpetitin. Technclgisrs therefre, especially thse in research and develpment, must have \ i

12 Palm Kernel Oil 80 sme idea f prices and their trends r risk being left grping in the dark. The fllwing pints are therefre wrth nting. In view f the similarity f PKO t CND in respect f cmpsitin, prperties, and uses, it is nt surprising that their prices remain dse t each ther and are highly crrelated. The average annual prices f PKO and end (eif Rtterdam) ver the 10- year perid shw that, thrughut that perid, PKQ was at an average discunt f $5 per MT. But, in the first half, the discunt was $3.6 per MT and increased t $7 per MT in the secnd half, which amunts t sme evidence that the difference is widening. On the ther hand, mre rigrus regressin analysis ver the same perid indicated that the trend was nt statistically significant (P > 0.05). Anther questin is the degree f crrelatin. Figure 3 shws the relatinship between PKO and eno prices ver the same 1a year perid mentined abve. The curve is linear with a very highly significant crrelatin cefficient (r = 0.988, P < 0.001). The regressin cefficient (b = 0.985) shws that the discunt fr PKO, in abslute terms, increases with increasing prices and can disappear r even reverse itself at lw prices. 1.11view f the abve, the best plicy fr lauric il users seems t be t have alternative frmulas and change frm ne f the ils t the ther accrding t csts. FUTURE DEVELOPMENTS The MPOB has been carrying ut cntinuus research t widen the very limited gene pl f the current il palm planting material, which severely restricts the degree f imprvemenr that can be achieved with them. Germplasms were cllected peridically frm the 800, ; '00+-./ ~L- 1 I / t /'-'L I / ~ ~ 500 j ;/--- / regins f Africa, where the tree riginated, t find suitable genetic material with which t enrich the current breeding ppulatin. The first cllectin was planred in 1976 and after exrensive evaluatin, rw series f elite planting materials were intrduced t the industry. These new elite materials are knwn as.00 '00 BOO CNO, USSImeic tn PORL\1 Series 1 and PORlM Series 2 and Fllure J. Palm kernel 011(PKO) iuldeeeeeve il (CNO) ayer ffer greater yield f il ale iulnual prices (clf Rtterdam) and different fany acid cmpsitin. Anther new elite planting when PO will becme the majr nn- material, PORlM Series 3, has nw been develped that gives mre than 10% kernel cntent per bunch, cmpared with 5% fr the usual palms (see Table 5). It is expected that this planring material will put the industry in a gd psitin t meet the future demand fr lauric ils in fd, sap and lechemicals. PKD wrld prductin currently is belw that f end by abut ne-third, but being a c-prduct f PO, its rate f grwth is much higher and ur frecast is that in the wrking lifetime f msr readers f this paper, it will becme the majr lauric il at abut the same time 300~-_--_--_----_--~ 300 lauric il. T cnserve space in infrm, the references fr this article are nt being published itt the magazine. Subscribers wh wish t have a cpy will find the references at the infrm prtin (lletlillk: lvlvlv.acs.rglpresslinfrm.htm) f the AGes Internet page. Persns wh have but d nt have Internet access shuld send a request fr references t willhite@acs.rg. References als may be btained by sending a request t Infrm by fax (217-35J-8091) r by mail t infrm, P.O. Bx 3489, Champaign, ll T~eS Ranee in the characterisdcs r Dun mther palms with hili' kernel cntent Fresh fruit bunches (Kglpalmlyrl Bunch number (nr/palmlyr) A"erage bunch weight (kglpalmlyr) Kernel t fruit ('Y) Kernel t bunch ('Y) Oil per palm per year (kg) SUTCe: PORIM {Palm Oil Research Institute f Malaysia) Range Vlume 12 January 200 I Infrm