Are you in search of sustainable palm oil production? Or do you want to explore your opportunities for investment in the palm oil industry? If yes, then go through this blog.

This blog is here to help you understand the complex process of palm oil and palm kernel oil production by dividing it into three key stages. Whether you are a crude oil producer, an aspiring entrepreneur, or simply someone curious about palm oil, this guide is designed to provide valuable insights into the production journey, enriching your understanding of sustainable crude oil production.

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In the next sections, we'll explore how palm oil is produced, from palm seed growth to crude palm oil. We'll examine how refining enhances palm oil quality and discuss the transition to palm fractionation, along with the definition and history of palm oil.

So, let's get started with the definition of palm oil.

What is Palm Oil? And Where does it Come From?

Palm oil is a type of sustainable vegetable oil derived from the fruit of the palm oil tree, scientifically known as Elaeis guineensis. It is one of the most widely used and versatile vegetable oils globally due to its high yield, low cost of production, and various applications in the food, cosmetics, and biofuel industries.

The historical roots of palm oil usage can be traced back to ancient civilizations in West Africa, where the oil palm tree (scientifically known as Elaeis guineensis) is native to the region. Palm oil is a vegetable oil that comes from the fruit of the palm oil tree.

Palm oil trees are cultivated in humid tropical conditions, which can be found 8–10 degrees north and south of the equator. Originally founded in West Africa, the palm oil tree is now found across Asia, Africa, and Latin America to meet global demand. According to Statista,Indonesia is the leading palm oil producer globally, with 45,500 thousand metric tons of production during the years 2022-2023.

palm oil production graph

After knowing the global production of palm oil, let us understand its consumption through the chart and numbers analyzed by Statista.

What is the Global Consumption of Palm Oil?

pam oil consumption overall

Stats from Statista.

This presents global palm oil consumption trends from 2015/2016 to 2022/20data 23. In the 2018/2019 period, the worldwide consumption of palm oil surpassed 71 million metric tons. Projections indicate that this figure is expected to rise to around 76 million metric tons by the year 2022/2023.

Hence, palm oil consumption has shown a constant and continuing surge from 2015 to 2023. And in the upcoming years, the demand for palm oil will surge further due to the expansion of the population, increased consumption, and growing utilization of palm oil in various industries and applications.

So after knowing the total production and consumption of palm oil, let us move on to the next section that provides information on the palm oil production process. Let’s explore.

Step-by-Step Process of Palm Oil Production

One of the most widely used vegetable oils globally, finding its way into countless products on our supermarket shelves. To understand its journey from palm fruit to our daily lives, let's divide the palm oil processing journey into three stages, hence, here are the stages required to produce palm oil.

Digestion Process

Palm oil production begins with palm trees, which are grown in various regions. The journey from tree to oil involves several important steps. Here's how it happens:

palm oil digestion process
Fruit Seed Harvesting:

The palm oil production process begins with the harvesting of ripe oil palm fruits. Mature fruit bunches, displaying a reddish-orange color, are meticulously selected for harvesting. Workers use machetes to cut the fruit bunches from the trees, ensuring the timing is precise for maximum oil yield.

palm fruit

Following the harvest, the fruit bunches are carefully collected and loaded onto suitable transportation equipment. These harvested bunches are then weighed and recorded for documentation purposes. However, the approximate weight of one fruit branch of palm oil is around 10 to 25 kg, which carries 1000 to 3000 fruits in one branch.

Moreover, to understand how this fruit provides palm oil, let us understand the insights of palm fruit.

insights of palm fruit

The insights of palm fruit include Endocarp, Kernel, and Mesocarp.

Endocarp:The endocarp is the innermost layer of the oil palm fruit. It surrounds the palm kernel and protects it. The endocarp is not typically used for oil extraction; instead, the focus is on extracting oil from the mesocarp and the palm kernel.

Kernel: The kernel, also known as the endosperm, is the inner part of the oil palm fruit, enclosed by the endocarp. It contains palm kernel oil, which is distinct from palm oil. Palm kernel oil is extracted from the kernels and has different characteristics and uses compared to palm oil. It is used in various applications, including cooking, industrial processes, and cosmetics.

Mesocarp: The mesocarp is the fleshy, middle layer of the oil palm fruit. It is the part of the fruit that contains a high percentage of oil. In the palm oil production process, the mesocarp is processed to extract crude palm oil (CPO), which is the primary product derived from the oil palm fruit.

So, after knowing the insights on palm fruits, let us delve into the further processes of palm oil production.

Sterilization Process (Pre-digestion)

Ripe palm fruit bunches are carefully collected and gently crushed to initiate the sterilization process. The sterilization process involves steam treatment to soften the palm fruit and make the extraction of palm oil from the oil palm fruits easier. Sterilization also helps kill any microorganisms that could affect the oil's quality. Steam boilers, sterilization tanks, and autoclaves are a few tools that are used for sterilization.

palm oil sterilization process

This application of controlled heat is akin to coaxing the oil out of its natural hiding place within the fruit. It marks the initiation of the transformation from fruit to oil, setting the stage for the subsequent stages of palm oil production. Moreover, if you want to explore different oil extraction methods other than this method, you can check our guide, on different methods and techniques of oil extraction. It provides complete information on different techniques that you can use for oil extraction.

Threshing Process

Once sterilized, the palm fruit bunches are loaded into threshing machines. These machines are equipped with rotating drums or mechanical beaters that work to separate the fruit from the bunches. Inside the threshing machines, the mechanical action takes place. The rotating drums, or beaters, effectively strip the fruit from the bunches. The force applied during this process causes the fruit to detach, leaving behind empty fruit bunches and seeds.

palm oil threshing process

Further, the separated seeds and fruit bunches are used to obtain palm kernel oil. As the mechanical action progresses, a mixture of loosened fruit, fruit fibers, and some residual empty fruit bunches is generated. This mixture is then transported to subsequent processing steps, such as pressing or digestion, where the oil is further extracted from the fruit.

However, before we move forward, let's briefly discuss the palm kernel oil manufacturing process.

Palm Kernel Oil Process

The separated palm seeds from thrashing process undergoes in cleaning process to remove any impurities or residual pulp. This is important to ensure the quality of the extracted palm kernel oil. However, if you want to know the importance of cleaning seed before pressing then you can check out our blog on the significance of cleaning seeds before pressing. Further, the cleaned palm kernels are then crushed or pressed to release the oil contained within them. This crushing is typically done using mechanical presses. The result is a mixture of palm kernel oil and palm kernel cake (the residue left after oil extraction).

The crushed palm kernels are further processed to extract palm kernel oil. This can be done through mechanical pressing or solvent extraction methods. Mechanical pressing involves applying pressure to the crushed kernels to extract the oil, while solvent extraction uses chemical solvents to separate the oil.

Pressing Process of crude palm oil

Coming back to crude palm oil process, once the fruit mixture, which includes the loosened fruit from threshing, is prepared, it moves on to a critical phase known as pressing. This phase harnesses the power of mechanical palm oil presses to extract the precious oil from the fruit pulp.

These mechanical presses are engineered to exert substantial pressure on the fruit mixture. As the mixture enters the press, it encounters a controlled force that steadily compresses it. This pressure acts like a gentle yet firm hand, squeezing out the oil that has been nestled within the pulp.

pressing process palm oil

The pressing process may comprise a series of presses to maximize oil extraction. Each press applies a fresh round of pressure, ensuring that every bit of oil is diligently extracted. It's a meticulous operation that aims to optimize oil yield while maintaining the quality of the extracted crude palm oil.

The art of pressing is essential in palm oil production, as it plays a pivotal role in separating the oil from the fruit pulp. This extracted oil is then further processed to yield the valuable crude palm oil that serves as the foundation for numerous applications.


The oil extracted from the pressing process contains not only the desired palm oil but also impurities, moisture, and solid particles. Hence, to purify crude palm oil from such impurities, the oil is heated to a specific temperature.

After the heating process, the palm crude oil undergoes centrifugation. Centrifugation is done through a centrifuge machine that spins the oil and creates a strong force like gravity. Such forces as gravity push away the hard impurities, water, and solid bits and leave cleaner oil.

Drying Process

In the palm oil production journey, the drying phase serves as the finishing flourish. It comes after pressing and clarifying the oil, where the extracted oil, known as crude palm oil (CPO), is nearly ready for its diverse applications.

However, there's a detail to address: a trace of moisture remains in the CPO, and this is where drying steps in. Think of it as the final touch to ensure top-notch quality and longevity:

During drying, the CPO is carefully exposed to controlled conditions. Warm, dry air circulates around it, gently coaxing out the last bits of moisture. The temperature and airflow are meticulously adjusted to strike the perfect balance – thorough drying without compromising the oil's integrity.

The result is CPO in its purest, most stable form. This meticulous drying process not only extends the oil's shelf life but also prevents any unwanted microorganism growth. With moisture concerns addressed, the palm oil is now primed and ready to play its versatile role in various industries and products.

Crude Palm Oil (CPO):

The culmination of the palm oil production process yields a precious substance known as Crude Palm Oil (CPO). This raw form of palm oil is akin to a versatile canvas awaiting transformation into an array of essential products. It carries the essence of the oil palm's rich fruit, and its potential is boundless.

crude palm oil

CPO serves as the foundational building block for an extensive spectrum of applications. It's the cornerstone of cooking oil, lending its golden hue and distinct flavor to culinary creations worldwide. Beyond the kitchen, CPO finds its place in cosmetics, enriching skincare and beauty products with its nourishing properties.

Now that we have crude palm oil from the first stage, it's time to make it even better. The refining process is like giving it a spa treatment. Crude palm oil, as the name suggests, isn't perfect yet. It contains some things we don't want, like impurities and odors. That's where refining comes in. Hence, in the second stage of palm oil process, we discuss refinery process of crude palm oil.

Refinery of Crude Palm Oil

The refining of Crude Palm Oil (CPO) involves several essential stages to transform it into a refined and market-ready product. Here's an overview of these stages:

Free Fatty Acid Removal:

The first stage focuses on reducing the free fatty acid (FFA) content in CPO. This is done through a process known as neutralization, where an alkaline solution is introduced to neutralize the free fatty acids. This step helps enhance the oil's quality and stability.

Spent Earth Removal:

Spent Earth refers to the waste material generated during the neutralization process. It contains impurities and spent chemicals. The spent earth is separated from the oil through filtration or centrifugation to ensure the oil's purity.


Pre-treatment involves several sub-processes such as degumming and deacidification. Degumming removes phospholipids and other impurities, while deacidification further reduces the FFA content. This stage prepares the oil for subsequent refining steps.


Bleaching is a crucial stage in the refining process. It involves the use of activated clay or other adsorbents to remove pigments, residual impurities, and any remaining free fatty acids. The oil is heated and mixed with the adsorbent, and then it undergoes filtration to separate the impurities.


Deodorization is the final stage of refining, where the oil is heated under controlled vacuum conditions to remove any odors and volatile compounds. This step ensures that the palm oil has a neutral aroma and taste.

These refining stages result in Refined, Bleached, and Deodorized (RBD) palm oil, which is the purest form of palm oil suitable for various applications, including cooking, food processing, and cosmetics. The careful refining process enhances the oil's quality, flavor, and stability, making it a versatile ingredient in countless products.


After the refinery process, the refined palm oil is typically stored in specialized storage tanks. These tanks are designed to preserve the oil's quality and prevent contamination.

Refined palm oil is carefully stored in these tanks until it is ready to be packaged and distributed for various applications, including cooking, food production, and cosmetics. Proper storage ensures that the oil maintains its purity and freshness, ready to meet the demands of consumers and industries worldwide.

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Dry Fractionation of Crude Palm Oil

As we advance into the third stage of palm oil production, the significance of the refinery in collaborating with Dry Fractionation Plant Manufacturers becomes crucial. The refinery is integral in ensuring that the palm oil is aptly prepared for the intricate Palm fractionation process, elevating its versatility and utility.

If you are unfamiliar with the concept, dry fractionation in palm oil production is a specialized methodology applied after the palm oil has undergone meticulous refinement. The dry fractionation system is pivotal in segregating refined palm oil into two specific fractions: Palm olein oil and palm stearin oil.

Each fraction possesses distinctive properties and applications, allowing for a broad spectrum of uses. Curious about the specific steps involved in dry fractionation? The answers are delineated below

Here is a step-by-step dry fractionation process for palm oil production:


The process begins with heating crude palm oil (CPO) to a specific temperature, typically around 70-75°C (158-167°F). This heating reduces the viscosity of the oil, making it more fluid and easier to work with.


After heating, the CPO is gradually cooled down under controlled conditions. As the temperature drops, the various components in the oil begin to crystallize. The goal is to make separate solid crystals called palm stearin (which melts at a higher temperature) and keep the rest of the oil as a liquid called palm olein (which melts at a lower temperature). This separation helps create different types of palm oil for various uses.


Once crystallization is complete, the mixture of solid palm stearin crystals and liquid palm olein is passed through a filtration system. This separates the solid stearin fraction from the liquid olein fraction.

Hence, the dry fractionation of palm oil process comes to end here; however, dry fractionation allows palm oil manufacturers to tailor their products to meet market demands.

By separating the oil into fractions with distinct melting points, they can cater to specific applications and industries more effectively. Additionally, this process can be performed while adhering to sustainable and responsible practices to minimize environmental impacts through sustainable dry fractionation plant.

However, if you want to know different types of machines used in refinery of palm oil, you can check the table below.

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Types of Machinery Used in the Refinery of Crude Palm Oil

Refinery machines play a pivotal role in the palm oil industry, contributing to the production of high-quality palm oil that meets stringent standards for both domestic and international markets. These machines are essential for the transformation of crude palm oil (CPO) into refined, bleached, and deodorized (RBD) palm oil, which is suitable for a wide range of applications. Hence, here is a table showing machinery used to refine palm oil:

Name of Machine Description/Features
Neutralizer A neutralizer works to reduce the free fatty acid (FFA) content in crude palm oil (CPO), improving its quality for various applications. This is achieved through a chemical reaction with an alkaline solution.
Bleacher The bleacher's role is to remove pigments, impurities, and residual free fatty acids from CPO. It employs adsorbents, like activated clay, to enhance the clarity and appearance of the oil.
Deodorizer The deodorizer is essential for eliminating undesirable odors, off-flavors, and volatile compounds present in CPO. It operates under vacuum conditions to ensure odor removal while preserving oil quality.
Clarifier A clarifier machine separates impurities from oil using gravity settling, contributing to oil purity and clarity.
Filtration System The filtration system removes fine particles and solids from the oil, ensuring it meets quality standards.
Heat Exchanger It helps maintain temperature control during the refining process, ensuring consistent and efficient operation.
Deaerator Removes dissolved gases from the oil, improving stability and shelf life.
Steam Generator A steam generator works as a steaming machine for various refining processes.

Wrapping Up

Palm oil is used in diverse industries other than the cooking and food industries. Industries like cosmetics, personal care products, biodiesel production, and even the creation of renewable energy sources all benefit from palm oil. As the world continues to grow, the demand for palm oil is likely to increase, especially in these non-food sectors. Keeping an eye on the growth and demand of crude palm oil sustainable and environmentally friendly practices will be a key trend in the future of palm oil production, ensuring its responsible expansion across the globe.

However, if you are looking for sustainable and environmentally friendly palm oil production, you need to include palm oil production mechanical machines and equipment. Such equipment will not only make sustainable palm oil production more efficient but also empower the industry to meet the growing demand while minimizing its impact on the environment.

If you are looking for oilseeds, fats, and oil machine manufacturing company for your palm oil production process, then you should look for reliable companies that have experience in manufacturing machines, especially in fats and oil industries. There expertise in machine manufacturing streamlines your oil production process and provides ROI as expected.

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Riyaz Tunvar

Riyaz Tunvar is a seasoned Director at N&T Engitech Pvt Ltd, specializing in sales and marketing for industrial plants, refinery, and machinery manufacturers. His deep understanding of the sector, combined with his customer-centric approach, has played a vital role in positioning N&T Engitech as a trusted name in the market.

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