Why palm oil? Oil palm produces the highest yield of oil per hectare (3.68 tonnes/ha/year) compared to rapeseed (0.59), sunflower seed (0.42) and soybean (0.36) (Corley and Tinker, 2003) 4 Major Vegetable Oil Crops 4.00 2010 Yield comparison 3.50 Production 3.00 Land use 2.50 ton oil/ha/yr 2.00 1.50 1.00 0.50 0.00 Palm Rapeseed Soya Sunflower 170 Mio ha 120 Mio ton Oil palm Higher production with much less land (+immature ~ 10%) Indonesia=22.03 Mio ton •Effective for poverty alleviation Indonesia=5.73 Mio ha* Malaysia=17.88 Mio ton Malaysia= 4.07 Mio ha*Source: Oil World 2010/Sinar Mas Tbk •Minimize land use change * Harvested area/matured plant