Palm Fruit Oil

Palm Oil is said to be nature’s gift to the world.Consumed for more than 5,000 years, its nutritional

value, health benefits and value as a natural resource

continue to be discovered even today.

First introduced to Malaysia in 1870 as an ornamental

plant, the Elaeis Guineensis tree, also known as the

oil palm, is now a leading agricultural crop.

Palm fruit oil comes from the flesh of the fruit.  It is

physically and chemically different from palm kernel

oil.  Palm kernel oil comes from the seed or kernel

at the core of the palm fruit.

The Nutrition Packed Vegetable Oil

A member of the vegetable oil family, palm fruit oil is cholesterol free; it is

rich in vitamins A and E; and it supplies our bodies with basic daily energy needs.

Why palm oil is better for health

Palm fruit oil, naturally semi-solid at room temperature, does not require

hydrogenation.  It is a good replacement for partially hydrogenated oils

for many reasons.

§  Palm fruit oil is trans fat free.

§  Palm fruit oil is rich in antioxidants.

A misperception from the past?

There is a good chance you’ve heard palm oil erroneously referred to and grouped together with palm kernel oil and coconut oil as a “tropical oil,” a contributor to high cholesterol levels, or even as a trans-fat.  Palm fruit oil is different and contains much less saturated fat than coconut and palm kernel oil.

Palm oil products are trans-fat free

Palm fruit oil contains a variety of fats, vitamins and nutrients, but NO trans-fatty acids.  Trans-fatty acids are found predominantly within hydrogenated oils.  Several recent studies have implicated trans-fatty acids in increasing the risk of cancer, interfering with fat metabolism, enhancing fatty deposits in the arteries, and reducing the body’s ability to rid itself of carcinogens, drugs, and other toxins.

Information provided by the American Palm Oil Council

Please review the power point presentation to get a better understanding.

Power Point Presentation on Rain Forest Sustainability for Palm Fruit Oil


Questions for Organic Palm Oil Suppliers (from Rainforest Action Network)

Answered by Mr. Tulio Dias of Agro Palma, Belem, Para, Brazil, January 7, 2009

l  How was the land for the plantation acquired?

Land was bought.

Who purchased it?

Agropalma bought. Agropalma’s responsible for buying these lands is the lawyer Antonio Pereira, that is still in the company. Nowadays he is Agropalma’s Gereral Manager for Juridical Issues.

Who was it purchased from?

Agropalma has some big farms. First 2 ones were bought from Mr. Pedro Miranda, that was the owner of Porto Alto, a very big farm that was divided and became other big farms. Agropalma bought two of them. These two first farms are called CRAI and AGROPAR. After, Agropalma, bought 2 other big farms, from neighbor companies that decided to leave palm oil business (Agromendes and Coacará). Today, Agromendes is called “Agropalma strictu sensu” and Coacará became CPA – that provides Organic and EcoSocial Palm Oil for Ciranda. There are other smaller farms that Agropalma bought in the last five years. If is necessary, it is possible check documentation and see who was the owner of then. Any way, principle for purchasing remained: always Agropalma buy land from private owners, all documentation is checked, all neighbors are consulted and, if any thing wrong is found, negotiation is interrupted.

Who owns the title?

Land titles of Agropalma’s farms belong to Agropalma.

How does land tenure function in that region?

When someone buys a regularized land, this one has property of this land forever, until this one dies or sells. In case of death, land passes to heirs. There are official governmental agencies that analyze all land documentation in every sale or every death case.

Still, in Agropalma region there are lands that belong do Federal and State Governments, that do not have complete documentation, because the owner is the Government. These kinds of land are called non regularized lands, and Agropalma doesn’t deal with this kind of land.

When was the land acquired?

Lands has been acquired since 1980. CPA lands, were acquired in 2000, when Agropalma bought Coacará Company.

l  What was the land used for prior to the company's arrival? (agricultural purposes, old plantation, indigenous land, secondary forest, primary forest, etc.)

In Agropalma lands occupied by plantations there are all situations of previous vegetation. There is no case of farms in Indigenous Land. Since 2001, company decided to stop deforestation operations and develop new plantations only in degraded pasture areas. Specifically in the case of CPA area, that provides Certified Organic and EcoSocial palm oil for Ciranda, when Agropalma bought the land from Coacará, there was already a oil palm plantation. When Coacará established this plantation, area was occupied with primary forest. It is important to say that 75% of CPA farm remain with its original primary forest.

l  Have there been any conflicts on the ground with any indigenous or local groups and the company?

No. This kind of issues never happens, because Agropalma buys only completely regularized lands. Furthermore, in Agropalma’s farms region, there are not indigenous peoples living for decades or even centuries. The region is very near to Pará State Capital, Belém, and Portuguese occupation is too old. Indigenous peoples mixed with Portuguese people, and result is Pará State People.

l  What are the living and working conditions for laborers?

They are so good as determined by rigorous Brazilian Labor Laws. Company provides all support necessary to workers execute their jobs (transportation, tools, protection equipments, trainings, supervision, subsided food, health assistance, and, for some, a place to live).

What wages do workers earn?

Pay depends on their function. For the field workers salary is the minimum for rural workers in Brazil (Value established by government) plus a production premium. In a average it means R$800.00. This value is very good for region, for job, and for qualification of workers. Just to give a reference, minimum salary in Brazil is R$415.00.

Do laborers live on site?

About one quarter of workers lives in Agropalma’s villages, in houses (workers that have families) or in lodgings (for singles). Rest of then lives in the small towns and villages that exists near farms, and Company provides transportations to them coming work every day. Agropalma has a policy for giving preference to contract workers in region around farms. This is a way to maximize benefits for local people and, in same time, avoid bringing people from other regions that could be cause of social impacts.

Do they get paid hourly? Monthly?

Monthly.

Is health care provided?

Any health problem due the work is treated and 100% of costs are paid by company (diseases, accidents, etc). In farms there is a medical center with two labor doctors, one occupational therapist, one audiologist, and nurses that provide health assistance, orientation and carry out periodic medical exams to verify level of health in each employee. Exams are specific for each kind of job.

l  How many workers are employed?

Now, about 4.500.

What are the various types of work that people do?

            In Agropalma’s human resources department there are more de 300 different categories of workers, each one with a description. If there is interest, when you come visit Agropalma you can study all categories. For the present, here are the main categories:

Field workers: responsible for palm oil management operations (cut bunches, control weeds, cut leafs, plant seedlings)

Tractor operators: responsible for drive all tractors used in company.

Truck drivers: responsible for drive the trucks that makes transportation of bunches from field to mill

Industry operators: responsible for operate different machines in mills – sterilizatior, presses, decanters, pumps, etc.

Technicians (electric, mechanical, hydraulic, etc): responsible for keep all equipment (vehicles and machines) in good working conditions.

Administrative Staff: provides administrative support to all activities

l  Are the workers organized or unionized in any way?

Yes. They have two organizations: one workers union and one workers association. The organizations do not compete, they complement each other. Association is exclusive for Agropalma employees and deal more with leisure issues. Workers union is union of all agriculture workers of region and is linked with Brazilian Central Workers Union, based in São Paulo City. Workers union represents employees in collective negotiations about work conditions (e.g. salary, production premium, transportations, etc.). If you want we can book a conversation between Rainforest Action and Workers Union.

l  Who does the company work with within the community? How are these contacts selected?

With everyone. There are no trends to choose one or another to receive benefits. But, every time that Agropalma approaches some community, we look for residents association. If it exists, all work is done in partnership with association. If there is not association, we look for natural leaders. Natural leaders are known by people. So, to find the leaderships in a community is necessary to make several interviews with people. Usually, we start seeking for older residents, that know the history of village and history of its people.

l  What other forms of production or industry exist in the region in addition to your enterprise?

Cattle production, wood exploitation, timber processing, coconut production and subsistence crops and livestock (cassava, maize, rise, beans, chicken, pig, etc.)

l  How does your company view the difference between organic and sustainable production?

Conceptually the differences are few, being the “sustainable production” a wider concept.

Organic agriculture concept says that a farm or a production unit must be understood and managed as if it was an organism, with all activities that occurs inside linked with each other. Organic production must protect the environment and provides adequate work conditions. Management of production unit must bring balance for agroecosystem, in a way to minimize weeds, plagues, diseases and needs of external inputs. All activities must be in compliance with legal requirements.

Beyond all that issues pointed in Organic Agriculture concept, Sustainable Production concept brings ideas of good relationship, transparency and responsibility with all stakeholders, mainly workers, their families and neighbors; maximize local benefits; use of best production practices available at moment to maximize efficiency and minimize negative impacts; strict commitment with long term economical feasibility; responsibility in developing of new plantations; and commitment with continuous improvement.

In addition to growing organic palm oil, what is your company doing to operate in a sustainable manner?

Agropalma, with support of Social and Environmental NGOs, has being developing a specific way to carry out its business, under the concept: Company must do its core business in a way that maximize social and environmental benefits for region which it is in place. To put this concept in practice Agropalma has a free and direct telephone line, by which community can give any suggestion, ask for doubts or make any complaint. Agropalma has system that control compliance with all legal requirements and a business plan for next 20 years, in a way to ensure long term economically feasibility. Agropalma adopt the best management practices in plantations and mills (cover crops; erosion control; integrated pest management, with biological, mechanical and behavior control of pests, use of industrial organic residues in fertilization, to minimize needs of mineral fertilizers, even in conventional areas; adequate maintenance system to keep efficiency of mills and vehicles always in a high level, minimizing emissions; etc). Agropalma keeps and carry out researches in its 64 thousand hectares of primary rain forest located in its farms around plantations. Also Company has a Environmental Management System that identifies and controls all environmental aspects of all activities, avoiding non necessary environmental impacts (industrial and domestic waste disposal, use of fossil fuels, etc.). Yet, Agropalma does not use fire to clean areas used in new plantations, contributing to reduce greenhouse effect. Agropalma also contract a specialized independent consultancy company to carry out a social and environmental impact assessment before develop new plantings. Team responsible for this study, considers all aspects of air, soil, water, biodiversity and local population. Results of this assessment are considered in planning and management of new plantations. Agropalma always seek for local suppliers and when they do not exist, the Company tries to capacitate one in the region. In this way, Company already has developed several local services suppliers (eg. Buildings, transportations, medicines, machinery, etc). Also, Agropalma has partnership with 235 suppliers of FFB, being 185 familiar smallholders.

l  Where does your company see the palm oil market growing in the future? In what direction is the industry moving?

Even with the growth of the biofuels production during the last two years, more than 90% of the palm oil produced was used in the traditional markets which are the food, cosmetic and oil chemical. Biodiesel worldwide was most produced with rapeseed and soybean oil. We believe that the palm oil consume will keep its growth in the food area, today over 3.5 billion people depend on it as its main source of daily calories and the tendency is to increase with the actual economic crises as palm oil has the lower production cost and consequently the lower market price. Developed and planted in a sustainable way, the palm oil industry can bring social and economic development to poor regions as no other oilseed or oil tree need as much of man power like oil palm plantations, and as we know, the problem in the world is not lack of food but lack of job that can give the people the opportunity to buy their needs.