Who uses palm oil? Why the huge demand?
Palm oil is a hugely versatile vegetable oil used in a variety of ways in different cultures, industries and markets. In food, palm oil is used as a substitute for fat in making condensed milk, coffee cream, ice cream and margarine.
Because of its consistency and ability to resist high temperatures, it is commonly used as cooking oil and is considered one of the best oils for frying. All these amazing qualities make palm oil a highly sought after commodity in homes, restaurants and food processing industries.
As a non-food product, palm oil makes an important raw material in the production of soaps, detergents, greases, lubricants and candles.
With the growing profile of the biofuels market, palm oil has also proven to be a valuable feedstock for biodiesel and serves as an alternative to mineral oils used in power stations.
Palm oil derivatives are widely used in the pharmaceuticals and cosmetics industry. It is also used in the production of printing ink, drilling fluids and water-treatment products.
Apart from local trade in palm oil, it is heavily sold on the international markets as CPO (Crude Palm Oil) and usually commands a high premium price given its vast capabilities and high demand from several industries.