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Glossary

Glossary

3 MCPD

3-monochloropropanediol (3-MCPD)

3-MCPD esters (a chemical compound derived from an acid) is a food processing contaminants found in some processed foods and vegetable oils

AMJ

April, May, June

A term used to denote forward delivery months used in negotiation and pricing. Others include JFM for Jan-Feb-Mar, JAS for Jul-Aug-Sept and OND for Oct-Nov-Dec

APROBI

Asosiasi Produsen Bofuels Indonesia

Indonesia Biofuels Producer Association

BAP

Biodiversity Action Plan

A process used to access how a company’s activities affect biodiversity and renewable natural resources and how these impacts can be managed andmitigated.

BMP

Best Management Practices

Management strategies used to prevent or reduce pollution generated from an activity. In terms of palm oil pollution, BMPscould be water management, pest control and fertiliser management.

BPS

Badan Pusat Statistik – Indonesia

Statistics Indonesia, known in Indonesia as BPS, is a non-departmental government institute of Indonesia that is responsible for conducting statistical surveys. Its main customer is the government, but statistical data is also available to the public.

Biofuel

A fuelderived from recently living biological material such as harvested plant matter or animal waste

Bleaching

The oil is mixed with bleaching earth ( bentonite calcium) in a vaccum room to remove impurities and color pigments in the palm oil

CNF

Cost and Freight

Normally its cost and freight at a discharge port

CCNO

Crude Coconut Oil

CCNO is unrefined coconut oil that has been obtained directly from the coconut and the oil extraction process

CIF

Cost, Insurance and Freight

Normally its Cif a discharge port . It is a trade term requiring the seller to arrange the for the carriage of goods by sea to a port destination and provide the buyer with necessary documents to obtain the goods

CNO

Coconut Oil

CNO is an edible oil extracted from kernel of mature coconuts harvested from the coconut palm

CPKO

Crude Palm Kernel Oil

An edible palm oil derived from the kernel of oil palm. Kernel oil differs from palm oil as it is extracted from palm seed. Palm kernel oil and coconut oil form the main feedstock of laurics oil widely used in personal and home care products.

CPO

Crude Palm Oil

An edible vegetable oil which is extracted from the reddish pulp of fruit of oil palms. CPO can be exported or further refined to downstream oils, like RBD Palm olein which is the most common cooking oil.

CPOPC

Council of Palm Oil Producing Countries

Council of Palm Oil Producing Countries (CPOPC) is an intergovernmental organization for palm oil producing countries.

CSPO

Certified Sustainable Palm Oil

CSPO is certified palm oil produced according to the principles of the Roundtable on Sustainable Palm Oil (RSPO)

Degumming

The gum and fatty acid in crude palm oil and crude palm kernel oil are separated together with other impurities such as iron, copper and trace minerals by the applying phosporic acid

Deodourising

The odour and taste of oil is removed when the oil is steamed at high temperatures of between 240 degrees to 260 degrees and cooled at room temperature

EFB

Empty Fruit Brunch

Empty Fruit Brunches are a secondary product of the palm oil milling process, left over after the fruits from the fresh fruit brunches have been removed for oil extraction

Eksocarp

The outer layer of the pericarp of a fruit.

Endocarp

The innermost layer of the pericarp which surrounds a seed in a fruit. It may be membranous (as in apples) or woody (as in the stone of a peach or cherry).

FFA

Free Fatty Acid

A nonsterified fatty acid which can be used as an instant source of energy by many organs and onverted by the liver into ketone bodies. Palm oil is composed of fatty acids.

FFB

Fresh Fruit Branches

The oil palm tree starts to bear fresh fruit branches after three years. Each fruit on a fruit branch contains 50% oil

First Half

Term used to described Jan to Jun period

FOB

Free on Board

Normally its fob a load port. FOB is a term that indicates whether the seller or the buyer has liabiity of goods that are damanged or destroyed during shipment between the two parties. FOB shipping point means the buyer is at risk while the goods are being shipped and FOB destination means that the seller retains the risk of loss until the goods reach the buyer

FOSFA

Federation of Oil Seeds Fats Association, Europe

A professional international contract issuing and arbitral body concerned exclusively with the world trade in oilseeds, oils and fats

FPIC

Free, Prior and Informed Consent

FPIC is the principle that a community has the right to give or withhold its concent to proposed projects that may affect the lands they customarily own, occupy or use

Fractions

Fractionationis a process that separates a substance into smaller parts, also known as fractions. Palm oil can be fractionated into liquid palm olein and solid palm stearin at a ratio of 80:20

Fronds

A large divided leaf of a fern, palm or similar plants.

Fruitlet

Immature or small fruit

Futures

A futures trading is a form of investment carried out by speculating on the price of a commodity going up or down in the future

GAPKI

Indonesian Palm Oil Association

GAPKI is an organisation that carries out efforts to promote and improve the Indonesian palm oil industry.

GDP

Gross Domestic Product

GDP is the monetary value of a country’s overall output in terms of goods and services produced

Glycidyl fatty acid esters (GE)

Glycidyl fatty acid esters (GEs) are processing induced contaminants primarily found in refined fats and oils, and foods containing fats and oils.

GHGs

Greenhouse gas

A greenhouse has contributes to the greenhouse effects by absorbing and emitting heat in the atmosphere

GlobOil

The main Indian edible oil conference held every year in September

HCS

High Carbon Stock

HCS is used to refer to areas of land that store large volumes of carbon and should be protected from development to prevent the release of carbon into the atmosphere

HCV

High Conservation Value

HCV covers a broad range of conservation priorities including biological, ecological and cultural values

HCVA

High Conservation Value Areas

HCVA contains outstanding and critical importance due to their environmental, socio-economic, cultural, biodiversity and landscape value

Hectare

A hectare ( ha) is a metric unit used for measuring land area.1 hectare = 10, 000m2

Hedging

Hedging means to reduce risk. It is done by offsetting transactions that will eliminate one or more types of risk

IPM

Integrated Pest Management

IPM is an ecosystem based method of crop protection which includes techniques such as biological control and habitat manipulation

ISCC

The International Sustainability and Carbon Certification

ISCC is a scheme established in 2010 and is a system certifying the biomass and bioenergy industries with an aimt towards sustainable land use and reduction of greenhouse gas emissions

ISPO

Indonesian Sustainable Palm Oil

ISPO standard is developed by the Indonesian government to ensure that all Indonesian palm oil growers conform to higher agricultural standards.

Immature palm plantation

Immature oil palms are young palms of not more than 5 years old after field planting.

Independent smallholders

Small holders which are not bound to a specific mill. The RSPO Guidance on Scheme Smallholders ( July 2009) are labelled by their freedom to choose how to use their lands, which crops to plant and how to manage them.

JAS

July, August, September

Term commonly used in trading for forward delivery months

JFM

January, February, March

Term commonly used in trading for forward delivery months

Last Half ( of the month)

Land Tenure

Land Tenure is the name given to the legan regime in which land is owned by an individual

Landbank

A company’s landbank refers to the total area under the company’s ownership or management. This includes all land for oil palm cultivation

Lauric acid

Used for the manufacture of short chain fatty acids, fatty alcohols, methyl esters, fatty amines, amides, etc, for use in detergents, cosmetics and innumerable other products.

Legally protected areas

Areas that are legally designated for the protection and conservation of biodiversity

Liquidity

Liquidity is the ease with which a security can be traded on the market. It is usually defined by the turnover of the shares divided by the number of shares in the issue

MEMR

Ministry of Energy and Mineral Resources of Indonesia

Established in 1984 to administer and organise the energy sector in a way to achieve national objectives

MEOMA

Malaysia Edible Oil Manufacturer’s Association

Maintains relationships with government bodies and trade associations. It is affiliated with international tarde associations such as Federal of Oil, Seeds and Fats Associations LTD ( FOSFA) and ASEAN Vegetable Oils Club ( AVOC).

MPOA

Malaysian Palm Oil Association

Acts as an integrated entity of the Malaysian oil palm and other plantation industries

MPOB

Malaysian Palm Oil Board

MPOB is a government agency entrusted to serve the country’s oil palm industry. Its main role is to promote and develop national objectives, policies and priorities for the wellbeing of the Malaysian oil palm industry

MPOC

Malaysian Palm Oil Council

An organisaton that enhances he image of palm oil and uses technological and economic advantages to create greater awareness of palm oil

MSPO

Malaysian Sustainable Palm Oil

MSPO standard is a national certification created by the Malaysian government and developed with input for the stakeholders in the palm oil industry

Mature palm plantation

Mature oil palms are palms more than 5 years old after field planting.

Mesocarp

The middle layer of the pericarp of a fruit, between the endocarp and the exocarp.

NIOP

National Institute of Oilseeds Producers USA

An international trade association with a main objective of promoting the business welfare of firms and corporations engaged in the buying, selling , processing, storage, shipping and use of vegetable oils and raw materials.

OER

Oil Extraction Rate

Two methods can be used to extract palm oil. The dry and wet method. The dry method uses mechanical presses to squeeze the oil out using mechanical pressure. The wet method uses hot water to leach out the oil. The rate is measured in percentage

OND

October, November, December

Term commonly used in trading for forward delivery months

Oleochemicals

Oleochemicals are chemicals derived from plant or animal fats. Its primarily used to make soaps, detergents and biodiesels

PAO

Palm Acid Oil

PAO is a biofuel feedstock derived from Palm Oil Mill Effluent( POME). It is a by-product of the chemical refining of palm oil and consist of free fatty acids and neutral oils.

PFAD

Palm Fatty Acid Distillate

A by-product from palm kernel oil from refining crude palm oil. It is light brown solid and room temperature and melts to a brown liquid upon heating

PKO

Palm Kernel Oil

Palm Kernel Oil is an edible oil taken from the kernel of the oil palm. It should not be confused with the other two edible oils derived from palm fruits; palm oil and coconut oil.

POIG

Palm Oil Innovation Group

POIG is an initiative between environmental and civil society organisations and industry companies that aim to build upon RSPO principles and criterias

POME

Palm Oil Mill Effluent

POME is a highly acidic waste water discharged from the sterilisation and clarification processess in milling oil palm

PORAM

Palm Oil Refiners Association of Malaysia

Began operation in 2001. This company is involved in direct brokerage for the fullr ange of palm oil products and other Vegoil products and derivatives including by products.

RBD

Refined, bleached and deoderised

Refined, bleached and deodorised. These are the three stages of process to produce refined oil such as palm oil and palm kernel oil. RBD oil is made from copra, dried coconut kernel which is pressed in a heated hydraulic press to extract the oil.

RBD PK Olein

Refined, Bleached and Deodorized Palm Kernel Olein

Palm olein is the liquid fraction obtained from fractionation of palm oil. The fractionation process involves a physical process of cooling the oil under controlled conditions to low temperatures, followed by filtration of the crystals through membrane press.

RBD PKO

Refined, Bleached, Deodourised Palm Kernel Oil

RBD PKO is a fully bleached, refined, deoderised vegetable oil derived from the liquid fraction of the palm kernel oil

RBD PKS

Refined, Bleached and Deodorized Palm Kernel Stearin

Palm stearin is a solid fraction and is derived from palm oil through the process of partial crystallization at controlled temperature

RBD Palm Olein

Refined, bleached and deoderised Palm Olein

A liquid fraction obtained by the fractionation of palm oil after crystallization at controlled temperatures. Commonly used as raw materials in the manufacture of soaps, washing powder and other hygiene and personal care products.

RBD Palm Stearin

Refined, bleached and deoderised Palm Stearin

A solid fraction obtained by the fractionation of palm oil after crystallization at controlled temperatures. Besides edible usage, it can be used for making soaps and formulating animal feeds.

RBDPKO

Refined, Bleached, Deodourised Palm Kernel Oil

To produce palm kernel oil, a three stage process of refining takes place; degumming, bleaching and deoderising

RSB

Roundtable on Sustainable Biomaterials

RSG was established in 2007. It is a global certification scheme to encourage the sustainable production of biofuels and other biomaterials

RSPO

Roundtable on Sustainable Palm Oil

An organisation established in 2004 which has established international standards for sustainable palm oil production

Rapeoil

Rapeseed oil

Also known as canola. The name was changed to canola by Canada some years ago. Canola means Canadian oil. Canada is the largest producer of rapeseed oil. Oils in supermarket are labeled canola

SOPPOA

Sarawak Oil Palm Plantation Owners’ Association

A newly formed association representing Sarawak Oil Palm Plantation Owners in Sarawak to promote working relationships between owners and relevant parties and address issues pertaining to Sarawak’s oil palm industry.

SPOM

The Sustainable Palm Oil Manifesto

Established in 2014, SPOM is an initiative of five palm oil producers to initiate the HCS ( High Carbon Stock) Study to define what constitues HCS according to its Steering Committee

SPPOMA

South Palm Oil Manufacturer Association

Johor- the largest producer is in the group with 17 refineries

Saturated Fat

It is a fat that contains saturated fatty acids which usually comes from butter or meat

Sunoil

Sunflower oil

An oil which is high in Vitamin E and low in saturated fat. There are two common types of sunoil known as linoleic and high oleic . Linoleic is a common cooking oil.

Threshing

It is a process of looseing the edible part of cereal grain( or other crops) from the inedible chaff that surrounds it. It is a process done to prepare grains after harvesting

Traders

Traders buy and sell goods, shares, currency. In palm oil, there are two types of traders; physical palm oil traders and agricultural commodity trader

WWF

World Wide Fund for Nature

The World Wide Fund for Nature is an international non-governmental organization founded in 1961, working in the field of wilderness preservation, and the reduction of human impact on the environment.