The palm oil story started in 1848, when it was discovered that the oil palm, a native of West Africa, grew well in the Far East. Its giant bunches of red fruits are rich in oil that proved useful in soap and later as a lubricant for steam engines. Demand grew and plantations sprouted in Malaysia in the 1930s. As the industry

matured, cultivation spread to Indonesia. These two countries today produce 90% of the world’s palm oil. Malaysia produces about 19 million tonnes of palm oil and Indonesia about 25 million tonnes. Upcoming palm oil producers are Ghana, with an estimated 100 000 hectares planted, and Nigeria, with an estimated 400 000 hectares planted.

These days palm oil is used in a vast array of food and consumer products like peanut butter, margarine, ice cream, lipstick, and shaving foam. Palm oil makes shampoos and soaps more creamy. It is a common cooking oil across Asia. It is also becoming more popular as a biofuel. Laws that encourage the use of bio­fuels are adding to demand.

Palm oil is the world’s largest vegetable oil crop. Palm oil is cheap compared to other vegetable oils, but green activists are doing their best to turn palm oil into a commercial liability.

4.3.3