Palm Kernel is the edible seed present in the outer thin layer of palm fruits, which come from oil palm trees, that are categorised as a tropical plant. Palm kernel is one of the two sources that produce palm kernel oil after crushing and pressing. The other source of oil is the flesh of fruit. Palm kernels are usually discarded during the processing of palm fruits. It can only be obtained once the solid and liquid parts of the palm fruits are separated from the fruit. In terms of appearance, the palm kernel is whitish to light yellow and is relatively hard with the size of a marble. It is protected by a kernel shell, which is tough and woody. The good thing about palm kernel is that it can be easily stored even when it dries out. Therefore, it is first converted into palm kernel nut, which then turns into palm kernel oil and palm kernel cake.
The palm oil that is made from palm kernels has multiple applications. For instance, palm oil is used as cooking oil for baking (to extend their shelf life), frying, making chocolates, etc. It also mimics the fat present in butter, ice cream, cheese, and others, which is responsible for their consistent texture. Aside from that, the cosmetic and personal care industry also uses palm kernel oil to make soaps, detergents, lotions, creams, etc. Their applications extend to producing biodiesel and lauric acid. Several researchers are also exploring how palm kernel oil can be used as a bio-insulator in electrical transformers. The other processed product of palm kernel is palm kernel cake, which is used as a high-protein food for dairy cattle. All of these applications of palm kernel oil are possible because of the palm kernel's long shelf life and stability even in high temperatures. It is also rich in many nutrients. Let's explore those nutritional benefits:
The global trade market has given a place to palm kernel mainly because it is a major source of producing palm kernel oil, which in turn is used in multiple sectors. The global trade of palm kernel makes a significant contribution to the global agriculture industry. Indonesia is in the top position as the largest producing country of palm kernel. In 2022, it will produce 58% of the total global palm kernel production by producing 10,920,000 tons of it. Malaysia, Thailand, Nigeria, and Colombia then followed in producing most of the palm kernel. Palm Kernel is beneficial for a lot of industries worldwide, which is why it is in demand a lot in the global trade markets.
The industries driving the international trade market of palm kernel:
1. Food industry
The food industry uses a processed form of palm kernel as palm kernel oil. It is used as cooking oil for several high-heat cooking methods because it has a high smoke point. Some baked foods like bread, cookies, cakes, pastries, and others are made with palm oil. It is mainly to reduce moisture, improve texture, and, all in all, increase its shelf life. Several ready-to-eat meals, like frozen pizzas, are also made from palm kernel oil.
2. Cosmetics and Personal Care Industry
Palm kernel oil, made from palm kernel, is an abundant source of fatty acids, which help in moisturizing the skin and hair. It also acts as an emollient for the skin, which creates a protective barrier, ensures that the moisture is locked, and further makes the skin even softer. Its high lauric acid content also makes it perfect to make soaps, cleansers, and body washes. These are the reasons why palm kernel is highly demanded in the cosmetic and personal care industries.
3. Biofuel industry
Palm kernel makes palm kernel oil a renewable resource, which means it can be converted into biodiesel after reacting with alcohol. However, this process requires a catalyst, and Palm kernel shells can be a substitute for conventional catalysts for this process. These biodiesels have the same properties as petroleum-based diesels, which makes them usable in most diesel engines. Moreover, when you compare biodiesel to conventional diesel, you will see that biodiesel produces fewer emissions of hydrocarbons, carbon monoxide, and other particulate matter.
When you go into the world of trading, you will notice that there are some particulars that you need to tick off when you’re exporting palm kernel. Those are mainly concerned with the quality of palm kernel oil. Let’s dive deep into it, so that your deals can close faster:
Some Other Region-Specific Palm Kernel Types:
When you’re in the trading business, it is always a good idea to add more products to your business. It helps you increase your profit margins and enter the global market more effectively. Here is the list of items you can add to your exporting business:
Understanding the current market size of palm kernels can have a great influence on your business. It comes in handy when you’re choosing the importing countries and evaluating their value in the market.
Global Market Size
Source: Maximize Market Research
Top Importing Countries for Palm Kernel (2024):
Source: Volza
You can include multiple platforms in your process of finding verified palm kernel importers from all over the world. Here is how you can go about it:
1. Which industry uses palm kernels?
The food, cosmetic, personal care, biofuel, and agricultural industries use palm kernels.
2. Who are the biggest buyers of palm oil?
Buyers from countries like India, Pakistan, and Cambodia are the biggest buyers of palm oil.
3. Is the palm kernel business profitable?
Yes, the palm kernel business is profitable if you start selling them to palm oil mills or exporting them worldwide.
4. What is the cost of a palm kernel shell?
The average cost of a palm kernel shell is INR 5,000 per MT. Remember that the price of a palm kernel shell varies as per the palm kernel price per ton, its demand, and the location.
5. Where to export palm kernel?
You can export palm kernels to Malaysia, Vietnam, and India because these countries are the largest importers of palm kernels.
6. Who is the largest producer of palm kernel oil?
Indonesia is the world’s largest producer of palm kernel oil.
7. How to remove odour from palm kernel oil?
You can remove unnecessary odour from palm kernel oil through the process of deodorization. This process requires high vacuum and steam.
8. What is the end product of palm kernels?
Palm kernel oil and palm kernel cake are two of the end products of palm kernels.
9. What is the palm kernel HSN code?
12071090 is the HSN code for palm kernel.
10. How to find buyers for palm kernels?
You can find palm kernel buyers by signing up on B2B platforms, attending trade fairs, and being active on social media platforms.
Indonesia's average palm kernel exports of 2.25 MT to the US might decrease by 15 to 20%. This is because the US has imposed a 32% tariff on Indonesian goods. (Full Story: Reuters)
