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History of Palm Oil Trade

History of Palm Oil Trade

The oil palm, Elaeis guineensis, is native to equatorial West Africa. The main oil palm belt of West Africa runs through the southern latitudes of Sierra Leone, Liberia, Ivory Coast, Ghana, Togo, Benin, Nigeria, Cameroon and into Zaire and Angola. Humans have consumed palm oil for tens of thousands of years. Written records of palm oil are available from Portuguese travelers to West Africa in the 15th century. However, fatty residues with analytical characteristics of oxidized palm oil dating back to 5000 BC have been found in Egyptian pyramids.

Exports of palm oil to Europe in large quantities began in the late 18th century. After the anti-slavery legislation in the first part of the 19th century, traders needed an alternative to the lucrative slavery trade from West Africa to North & South America and the Caribbean, and trade in palm oil increased tremendously. The establishment of trade in palm oil from West Africa was mainly the result of the Industrial Revolution in Europe. As people in Europe began to take sanitation and hygiene seriously, demand for soap increased, resulting in the demand for vegetable oil suitable for soap manufacture and other technical uses, such as tinplating. In the early 1870s, exports of palm oil from the Niger Delta were 25 000 to 30 000 tons per year and by 1911 the British West African territories exported 87 000 tons (Table 1).

Africa led the world in production and export of palm oil throughout the first half of the 20th century, lead by Nigeria and Zaire. By 1966, however, Malaysia and Indonesia had surpassed Africa's total palm oil production. The oil palm was introduced into South Asia in 1848 as an ornamental tree. Commercial exploitation as an export crop started in Sumatra after 1910 and in Malaysia in the 1920s. Palm oil developments in South East Asia continued, and today, South East Asia exports far more palm oil than Africa (Table 2), with Malaysia producing over 50% of the world's total refined palm oil exports.

Table 1. Early Palm Oil Imports into the United Kingdom from West Africa
Date
Tons
1790 130
1810 1,287
1830 10,673
1840 15,773
1900 43,025
1910 87,050

 

Table 2. Historical Trends in Exports of Palm Oil (1,000 tons)
Region
1950-53
1970-73
1982-85
1990
1998
W Africa 320 148 68 140 100
SE Asia 170 840 3,480 7,190 10,235
C & S America -- -- -- 30 216
TOTAL 490 1,028 3,548 7,360 10,551

Purchase red palm oil | Oil Palm Varieties | Impacts of Oil Palm Plantations

Sources:

- Kurt Berger. Palm Oil. http://www.britanniafood.com/german/invite_02.htm
- Kwasi Poku. 2002. Small-Scale Palm Oil Processing in Africa FAO AGRICULTURAL SERVICES BULLETIN 148 FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS

 

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Updated January 9, 2006
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