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Palm oil grades, fractions, and global supply origins

Palm oil is the world's most produced vegetable oil by volume, with Indonesia and Malaysia together accounting for approximately 85% of global exports. For bulk buyers, understanding palm oil fractions is essential: crude palm oil (CPO) is the raw, unrefined product used by processors; RBD palm olein is the liquid fraction after fractionation and refining, widely used for frying; RBD palm stearin is the solid fraction used in margarine, shortenings, and confectionery fats; and palm kernel oil (PKO) is a separate product extracted from the kernel with distinct fatty acid composition. Each fraction has its own pricing, packaging, and certification requirements. RSPO (Roundtable on Sustainable Palm Oil) certification is increasingly mandatory for European and UK buyers under corporate sustainability commitments and retail chain requirements. ISPO (Indonesian Sustainable Palm Oil) is the Indonesian government standard. Flexitank and ISO tank are standard bulk shipment formats.

What to check when sourcing bulk palm oil

When sourcing palm oil wholesale, specify the fraction (olein, stearin, CPO), iodine value (IV) for olein — IV 56 is standard for tropical markets, IV 60 for cooler climates — and free fatty acid (FFA) content. Request a Certificate of Analysis from each production lot. For EU/UK buyers, RSPO Mass Balance or Segregated certificates are typically required; confirm the certificate scope covers your product type. For Halal markets, verify Halal certification from a recognised body. Import duty rates vary significantly by destination: EU applies 0% for CPO, with higher rates for refined grades under anti-dumping review. UK, India, and other markets have specific tariff structures — confirm the correct HS code before pricing imports. Lead times from Southeast Asia are typically 3–6 weeks to European and Middle East ports.

Frequently asked questions

What is the difference between CPO, RBD olein, and palm stearin?

Crude palm oil (CPO) is the raw extracted product, reddish-orange in colour due to carotenoids, and requires refining before food use. RBD palm olein is the liquid fraction after refining and fractionation — it is clear, odourless, and the most widely used form for frying. Palm stearin is the solid fraction, used in margarine, bakery fats, and coatings. Each has a distinct price point, with CPO lowest and speciality fractions commanding premiums.

Is RSPO certification required to import palm oil into the EU?

RSPO is not legally mandatory under EU law, but is effectively required by most major European retailers and food manufacturers under their corporate sustainability policies. The EU Deforestation Regulation (EUDR), which applies from late 2025 for large operators, requires due diligence documentation proving deforestation-free supply chains for palm oil placed on the EU market. Buyers should confirm RSPO Mass Balance at minimum, with Segregated preferred for premium buyers.

What is the typical MOQ for wholesale palm oil?

Standard MOQ is one 20ft ISO tank (approximately 20,000–22,000 litres) or flexitank (22,000–24,000 litres). Smaller drum orders (200L) are available from regional distributors at higher unit pricing. Palm oil price is typically quoted on CBOT or Bursa Malaysia derivatives markets, so bulk forward contracts are common for larger buyers.

Which iodine value should I specify for palm olein?

Iodine value (IV) determines how liquid palm olein remains at ambient temperatures. IV 56 is standard for tropical and warm-climate markets where ambient temperature is above 25°C. IV 60 is preferred for temperate-climate countries (European, East Asian markets) where cooler temperatures can cause clouding or solidification of lower IV olein. Always specify the destination climate when ordering.

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