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Presentation outline
Palm oil quality and characteristics Palm oil trade Specifications Standards Ethical trading Conclusion
Definition of Quality
Conventional ability to satisfy stated or implied needs Current implications on security, safety, human health, accountability, environment, etc.
e.g. Sustainable production of palm oil
Plantations
Mills
Export
Consumers
Physical
SMP SFC Apparent Density Viscosity Refractive Index
Quality Characteristics
PV E233 & E269 AnV DOBI Fe, Cu, P FFA OSI M&I Contaminants
Phospholipids
Sterols Pigments Tocols Minerals
Glyceride Composition
Triacylglycerols (TAGs) make up about 90 % of the components in oils and fats CPO contains about 4.7% diacylglycerols (DAGs) and 0.1 0.3% Monoacylglycerols (MAGs)
Fatty Acids
TAGs 3 fatty acids
Fatty acid 1
Trans H C
H C H C C H H
FFA Content
Presence of large quantities indicative of
lipolytic activity in damaged fruits
FFA versus AV
The acidity of the oil is expressed as FFA content or acid value (AV) In instances where a blend of oils is involved, uncertainty as to which acid to use for calculation arises and the acid value is used to define the acidity of the sample To convert %FFA as oleic acid, lauric or palmitic acid to AV, multiply the %FFA by 1.99, 2.81 or 2.19 respectively
Non-glyceride Components
Make up less than 5% of crude
vegetable oils
Pigments - Carotenoids
Orange-red colour of CPO due to 500-700
mg/kg carotenoids
Pigments - Chlorophylls
Impart greenish colour to crude rapeseed and olive oil They are photosensitizers which activate photooxidation in oils Their presence adversely affects oxidative deterioration, hydrogenation and bleachability
Minerals
Present only at trace levels in oils Phosphorus from residual phosphatides Sodium soaps left from alkali refining Iron & copper Trace nickel in hydrogenated fats
Quality specifications
Guarantee of parameters such as
FFA Moisture & Impurities IV Colour SFC
Standards
Specifications
Regulations/Legislation
Standards
Set criteria expected in a particular product
MS, CODEX, ISO
Unless incorporated into legislation or regulations, they have no legal validity A product meeting a standard is at once identifiable as a quality product
Specifications
Stipulate criteria demanded by the buyer of a particular product or consignment May be above or below those in a standard or may be concerned with criteria not covered in a standard Variations from a standard are usually the subject of price negotiations for the product
Regulations/Legislation
Define minimum legal requirements governing the sale of a product May incorporate a standard Standards and specifications will conform to regulations which must be met before the product may be legally sold
DOBI
Into Port Tank installation 2.5 minimum From Port Tank installation 2.31 minimum
ISO Methods
BSI Methods
PORAM Specifications
Parameters FFA (as % palmitic acid, max) Moisture & Impurities (% , max) Melting point (C) Iodine value (min) Colour (5 inch Lovibond, max) Refined palm oil 0.1 0.1 33 - 39 50 - 55 3 Red Refined palm olein 0.1 0.1 24 56 3 Red
STC specifications
Grading factors FFA (as % palmitic acid, max) CPO (Edible grade) 5.0 Refined Palm olein 0.1
Moisture & Impurities (% , max) Melting point (C, max) Iodine value (min)
Colour (5 inch Lovibond, max)
0.5 37
0.1 24 56
3 Red
TWO CIRCULARS WERE ISSUED BY THE CHINA AQSIQ ON EDIBLE OIL ( July 2012)
AQSIQ CIRCULAR NO. 229: Requirement to Further Strengthen the Import of Edible Vegetable Oil Inspection and Supervision
AQSIQ CIRCULAR NO. 80: Requirement for the Imports of Vegetable Oil in Bulk to China
China: GB 15680-2009
Grading factors Crude Palm Oil Acid value (mg KOH/kg, max) 10 Moisture & volatile matter (% , max) Insoluble impurities (%, max) Melting point (C, max) Fe (mg/kg, max) 0.2 0.05 33 - 39 5 Refined Palm Oil 0.2 0.05 0.05 33 - 39
Cu (mg/kg, max)
Peroxide value (meq/kg) Colour (5 inch Lovibond)
0.4
10 3 R 30Y
Commercial settlements
ETHICAL TRADING
Ethical Trading
Ethical sourcing Workplace conditions Workers welfare Sustainable agriculture More than 50 regulations/legislation in place to ensure sustainable practices in the oil palm sector
Conclusion
Challenges - the industry needs to overcome issues related to changing regulations, new trade obligations Competitiveness Mistaken notion on nutritional aspects Development on peatlands (GHG emission) Sustainability - environment, economy, social aspects Invisible trade barriers