{"id":28201,"date":"2024-07-23T04:21:50","date_gmt":"2024-07-23T04:21:50","guid":{"rendered":"https:\/\/gapki.id\/en\/?p=28201"},"modified":"2024-07-25T04:25:52","modified_gmt":"2024-07-25T04:25:52","slug":"exposing-real-contribution-of-palm-oil-in-global-economy","status":"publish","type":"post","link":"https:\/\/gapki.id\/en\/news\/2024\/07\/23\/exposing-real-contribution-of-palm-oil-in-global-economy\/","title":{"rendered":"Exposing Real Contribution of Palm Oil In Global Economy"},"content":{"rendered":"

JAKARTA \u2013 It was presumed that palm oil has no significant contribution to the global food sector. But data from a number of institutions shows that not only palm oil has significant contribution, but its contribution to the global food supply has been continually increasing.<\/p>\n

Based on data from USDA, in 2022 global production of palm oil rose from around 55 million tons in 2010 to 84,2 million tons in 2021. During the same period, the global export volume of palm oil also increased from around 40.5 million tons to 42 million tons.<\/p>\n

The major importers of palm oil products during 2010-2021 (Table-1) are India (18 percent), European Union (15 percent), China (15 percent), Africa (13 percent) and the USA (4 percent).<\/p>\n

In those importing countries, the palm oil is further processed into a variety of downstream products. The down-streaming activities create various economic benefits.<\/p>\n

The wider and deeper down-streaming of palm oil in those importing countries has created direct and indirect impacts to other economic sectors as a whole, which then creates induced consumption impact for the general public through direct and indirect consumption of palm oil.<\/p>\n

\"\"<\/p>\n

The study of European Economics in 2016 shows that there are at least 15 important sectors that are driven up along the palm oil downstreaming activities in those importing countries. Those sectors include foods, agriculture, hotels and restaurants, textile, construction, public administration and social security, trading, health, wood processing, chemical and chemical products, personal services, education, and pulp and papers.<\/p>\n

The study of Shigetomi et al. (2020) also confirms that many global economic sectors are involved along the global supply chain of palm oil. Those sectors are as follows:<\/p>\n

    \n
  1. Industries of foods, beverages and tobacco;<\/li>\n
  2. Industries of chemical and chemical products;<\/li>\n
  3. Industry of construction;<\/li>\n
  4. Industries of textile, clothing products and leather products;<\/li>\n
  5. Oil fuel-based industries;<\/li>\n
  6. Public health and social services.<\/li>\n<\/ol>\n

    The study also reveals that the economic benefits of palm oil are not only enjoyed by importing countries, but also by the global communities involving in the supply chain of products based on palm oil or using the palm oil. Households in many countries are heavily dependent on the consumption of finished products based on palm oil or hidden palm oil, \u00a0such as food products and non-food products (biofuel, cosmetics and toiletries), which are internationally traded.<\/p>\n

    The combination of direct and indirect impacts, and induced consumption impact of the importing activities of palm oil and palm oil downstreaming in those importing countries contribute to the increase of value added and Gross Domestic Product (GDP) at global level. The study of European Economics (2016) concludes that the income generation from palm oil downstreaming enjoyed by those importing countries in 2013\/2014 reached US$32.8 billion.<\/p>\n

    The income generating activities of importing and down-streaming of palm oil varies among the importing countries (photo 7). European Union enjoys the most of income generation at 18.7 percent. Then followed by China (17 percent), India (16.7 percent), Africa (13.5 percent), Pakistan and Bangladesh (10.1 percent), USA (7.3 percent), and other countries (17 percent).<\/p>\n

    \"\"<\/p>\n

    All those facts have proven the very important role of palm oil in the global economy. Besides its contribution to the producing countries of palm oil, through the imports and downstreaming in importing countries and supply chain of palm oil products, the palm oil also creates income generation at global market for both consumers and non-consumers of palm oil. (*)<\/p>\n

    Source: Mitos & Fakta Kelapa Sawit \u2013 4th<\/sup> Edition \/ <\/em>gapki.id<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

    JAKARTA \u2013 It was presumed that palm oil has no significant contribution to the global food sector. But data from a number of institutions shows that not only palm oil has significant contribution, but its contribution to the global food supply has been continually increasing.<\/p>\n","protected":false},"author":1,"featured_media":26846,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"neve_meta_sidebar":"","neve_meta_container":"","neve_meta_enable_content_width":"off","neve_meta_content_width":70,"neve_meta_title_alignment":"","neve_meta_author_avatar":"","neve_post_elements_order":"","neve_meta_disable_header":"","neve_meta_disable_footer":"","neve_meta_disable_title":"","neve_meta_reading_time":"","footnotes":""},"categories":[3711,3708,3709],"tags":[],"class_list":["post-28201","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-myths-facts","category-publication","category-recent-news"],"yoast_head":"\nExposing Real Contribution of Palm Oil In Global Economy - Gabungan Pengusaha Kelapa Sawit Indonesia (GAPKI)<\/title>\n<meta name=\"description\" content=\"It was presumed that palm oil has no significant contribution to the global food sector. 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