Palm oil production in Malaysia has increased over the years, from 4.1
million tonnes in 1985 to 6.1 million tonnes in 1990 and to 16.9 million
tonnes in 2010. It reached 18.9 million tonnes in 2011. The production
is projected to reach 19.4 million tonnes in 2012. The Malaysian palm
oil industry easily meets the local oils and fats demand, and the excess
can be exported. Palm kernel oil production in 1999 was 1.3 million
tonnes, and reached 4.7 million tonnes in 2011. Prior to 1970, most of
the palm kernel produced was exported. Since 1979, they were crushed
locally to produce crude palm kernel oil and palm kernel cake.
Malaysia is now the second largest producer of palm oil in the world;
after being overtaken by Indonesia in 2006. Since 1985, palm oil has
become the second most consumed oil in the world, after soyabean oil.
Malaysia’s share of global production in 1999 was 51% but in 2011, it
decreased to 38%.
Table 1 shows the productivity of various oilseed crops in terms of
their oil content and oil yield. It is evident that the oil palm is the
highest yielding oil crop, capable of producing 4.27 t of palm oil and
palm kernel oil per hectare per year.
