The production chain is the path that our crops, such as palm oil, take to go from the farm to the hands of the consumers. The chain can vary depending on the type of processing, transportation, or industrial needs the crop demands. In the case of palm oil, the main steps primarily include growing/harvest, transportation, separation/processing, refining, packaging, and distribution (Palm Oil Supply Chain, 2012). Each step is essential for getting a variety of palm oil products for consumers or for use in different industries!

The growth and harvest of palm oil is where it all begins. In Indonesia, over 14 million hectares are used for palm oil plantations (Ritchie & Roser, 2024). In the graph below, the amount of land use dedicated to growing palm oil only continues to increase each year. With a vast amount of land for palm oil plantations, Indonesia remains one of the largest centers of production for palm trees and palm fruit. Large plots of palm trees were planted approximately 25 years ago and continue to produce fruit every year. They are harvested using machetes and large sickles by farm workers. They are cut and collected by the bunch. This is done by letting the palm fruit fall via gravity where they are the carried out to be shipped out in the transportation step. (From Plantations to Your Pantry, n.d.)

The transportation step of the process occurs at many spots due to the need to transport the raw fruit the processed goods and for later distribution. The raw palm fruit is collected after harvesting and placed in a collective holding area. Fruits are typically moved by trucks but may also be transported via car or motorbike, depending on the scale of the plantation.  Boats may also be required if the processing mill is located across bodies of water. However, the transportation step is time-sensitive as delays in transport may reduce the quality of the fruit for processing (Palm Oil Supply Chain, 2012).

Apart from transporting fruit, oil will also be transported via large tankers. These tankers are designed to carry several tons of oil while preserving the quality of the oil. They are designed for industrial use and transport of large quantities to packaging or further processing. 

After transport, the palm fruit is washed, sterilized, and pressed for oil production. The process can be separated into two distinct paths of production: crude palm kernel oil and crude palm oil (Palm Oil Supply Chain, 2012). The first path, crude palm kernel oil, is extracted from the kernel of the palm fruit. The kernel is the soft inner portion of the fruit seed. The kernels are crushed and squeezed during milling. However, crude palm oil is extracted from the flesh, or outer portion, of the fruit. Unlike crude palm kernel oil, the flesh is only squeezed during milling. The separation ensures that each oil is suitable for its subsequent needs (Palm Oil Supply Chain, 2012). The best products for each type of oil are as follows:

Crude palm kernel oil - Detergents, soaps, cosmetics, and animal feed, 

Crude palm oil - food-grade uses such as cooking oil, frying oil, and as a food ingredient.

Following the processing of the palm fruit, the crude oils are transported to the refinery. The refinery of crude palm oil for degumming, bleaching, filtering, and deodorizing. The crude palm oil is heated under a vacuum with phosphoric acid to separate the gums or impurities during degumming. During bleaching, the gums and color pigments are removed using activated clay. Filtering removes the activated clay and filters out the oil. Finally, the oil is deodorized through heat as the palm fatty acid distillate is removed from the oil. These steps are essential for higher-quality products as they eliminate unwanted substances, such as metallic compounds and free fatty acids (FAO, n.d.).

It's the last step of the product chain where the packaged goods reach the hands of the consumers. The goods are transported out to various supermarkets and other shops. Consumers will then purchase the goods due to their availability in wholesale markets. They are then used for the intended purposes or consumed if used in food products (Palm Oil Supply Chain, 2012).