Repositioning the Palm Oil Industry from Oil Extraction to Whole Palm Valorization

Hui Teng Tan, Ahmad bin Ibrahim, Jun Wei Roy Chong, Petar Sabev Varbanov, Tomohisa Katsuda and Siew-Moi Phang

Agricultural & Rural Studies (A&R), 2026, vol. 4, issue 3

Abstract: The palm oil industry is a major contributor to agricultural production, rural livelihoods, and industrial development in many tropical economies. However, its long-term competitiveness is increasingly constrainted by stagnant yields, ageing plantations, labor shortages, slow replanting, and rising environmental expectations. Although previous studies have examined palm biomass utilization, waste management, renewable energy and low-carbon technologies, these topics are often treated as separate technical domains rather than as connected components of an integrated industry transition. This review addresses that gap by advancing a whole palm valorization perspective, defined here as the coordinated recovery, conversion, and value creation of plantation and mill-generated biomass and residual streams. For conceptual clarity, the core analytical boundary is restricted to resources generated directly within the plantation-mill system, while downstream post-consumer streams such as used cooking oil are treated only as related circular-bioeconomy boundary cases. The review compares major valorization pathways in term of technical maturity, economic feasibility, environmental benefits, logistical constraints, and implementation potential. Evidence from the literature shows that large fractions of fresh fruit bunches become residual resources. Besides, palm oil mill effluent (POME) and mill biomass offer measurable opportunities for energy recovery, emissions reduction, nutrient recycling, and downstream value creation. Nevertheless, implementation remains uneven due to feedstock logistics, capital requirements, market uncertainty, limited offtake arrangements, and fragmented governance. Overall, this review provides an integrated and evidence-based foundation for repositioning the palm oil industry beyond oil extraction toward a circular, lower-carbon, and more resource-efficient development pathway.

Keywords: Agricultural; and; Food; Policy (search for similar items in EconPapers)
Date: 2026
References: Add references at CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/410303/files/A%26R-4-3-0013.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:aesars:410303

DOI: 10.22004/ag.econ.410303

Access Statistics for this article

More articles in Agricultural & Rural Studies (A&R) from Zhejiang A&F University
Bibliographic data for series maintained by AgEcon Search ().