The latest report titled crude palm oil production cost report by Procurement Resource, a global procurement research and consulting firm, provides an in-depth cost analysis of the production process of the Crude Palm Oil.

Procurement Resource study is based on the latest prices and other economic data available. It also offers additional analysis of the report with detailed breakdown of all cost components (capital investment details, production cost details, economics for another plant location, dynamic cost model). In addition, the report incorporates the manufacturing process with detailed process and material flow, capital investment, operating costs along with financial expenses and depreciation charges.

Procurement Resource’s detailed report describes the stepwise consumption of material and utilities along with a detailed process flow diagram. Furthermore, the study assesses the latest developments within the industry that might influence Crude Palm Oil production cost, looking into capacity expansions, plant turnarounds, mergers, acquisitions, and investments.

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Procurement Resource Assessment of Crude Palm Oil Production Process:

1. Crude Palm Oil Production From Extraction of Palm Fruit: This report provides a comprehensive cost evaluation of palm oil production via extraction from palm fruits. To begin the production process, palm fruits are first sterilised by roasting or smoking following the threshing process. Another method to carry this out is via steaming/boiling the fruits prior to the threshing process. In the following step, the threshing process takes place, which separates the fruits from the batch and sent to rotary drums. Next, the fruit gets crushed in order to remove the pulp and skin of the palm fruit. This process splits the oil from the fruit facilitated by pressing the fruit using metal plates that leads to the production of oil through extraction. At last, the crude palm oil undergoes processing and filtration, yielding refined and pure palm oil.

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Product Definition:

Crude Palm Oil (CPO) is an oil mainly used for consumption and extracted from the pulp of the red fruit of oil palms (Elaeis guineensis). It is red in colour, just like the fruit's pulp, due to its high inactive content of vitamin A. It is produced on massive lands, primarily in South-east Asian countries such as Indonesia and Malaysia, where these oil palm plantations are widespread for the cultivation of CPO.

Market Drivers:

The demand for Crude Palm Oil is being driven by the primary application of the oil in the culinary application. It is used for cooking in many regions like South-East Asia, West Africa and Brazil. Its use as a cooking oil is growing rapidly owing to its properties, like being inexpensive and healthier compared to other oils, which furthers the growth of the market. Furthermore, it finds use in biodiesel production which is employed as a fuel in motor vehicles, shipping and aircraft, which boosts the market expansion. In addition to its culinary application, it also finds application in the production of many industrial products like cleaning products, deodorant, toothpaste, shampoo, cosmetics, and soaps, among others which propel the market forward.

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