What is the biggest advantage of palm oil production?

It yields 4-10 times more oil per hectare than other sources of vegetable oil such as soybeans or coconut palms. This makes it an efficient and profitable use of land. The economic value of palm oil translates into jobs, infrastructure and tax revenues.

Why is the income from palm oil harvesting important to its farmers?

The income of oil palm farmers can reach up to more than 5,000 US $ per year so that it can support the acceleration of people’s economic development and help reduce poverty in rural areas and one of the efforts to reduce poverty (Syahza 2011).

What are the environmental impacts of palm oil plantations?

Large-scale conversion of tropical forests to oil palm plantations has a devastating impact on a huge number of plant and animal species. Oil palm production also leads to an increase in human-wildlife conflict as populations of large animals are squeezed into increasingly isolated fragments of natural habitat.

Is palm oil production profitable?

How Profitable Is Palm Oil Business? The palm oil yield per hectare is estimated at 8 tons per year at most. Additionally, the profit farmers make per hectare is around 3.4tons per year.

What are the benefits of palm oil production?

For the main producing countries, palm oil significantly contributes to economic growth and the alleviation of rural poverty, as well as providing significant benefits to importing countries. Read more.

Why has palm oil production increased?

Population growth in emerging markets, global expansion by the food processing industry, and a turn away from trans fats by global consumers have all contributed to more than a doubling of the global use of palm oil for food over the past 15 years.

How much of Indonesia’s economy is palm oil?

Palm oil accounts for 11\% of Indonesia’s export earnings of $5.7bn. Maintaining its status as the world’s largest producer of palm oil, Indonesia has projected a figure of 40 million tonnes by 2020.

Why is palm oil an efficient crop?

The oil palm tree is the most efficient oil crop in terms of land use. It has the highest yield compared to other oil crops per hectare of land. It uses less than half the land required by other crops (such as sunflower, soybean or rapeseed oil) to produce the same amount of oil.

Is oil palm an annual crop?

The temperate oilseed crops also require a brief but intensive annual period of harvesting and processing that often must be completed in a matter of days, whatever the weather. In contrast, an oil palm tree can be cultivated for 20-30 years without disturbing the soil.

Is palm oil good for the environment?

The main facts about palm oil Here are the main facts why palm oil plantations are harming the environment: They release massive amounts of CO2 in the air as rainforests are cleared. Rainforests’ soils hold about 45\% of the world’s terrestrial carbon, cutting them down is like releasing a carbon bomb.