Why has oil palm become a key business?
Oil palm has emerged as a strategic crop due to its versatility and high yields in different economic sectors. Its growing demand, combined with its ability to adapt to diverse conditions, has positioned this crop as an attractive option for farmers. Below, we explore the factors that make oil palm a key business
High demand in various industries:
Palm and palm kernel oil are used in a wide variety of products, from processed foods to cosmetics and biofuels, ensuring a steady global demand.
Long-term production
Oil palm plantations have a useful life of 30 years or more, with regular harvesting cycles. This ensures long-term sustainable income for farmers.
Employment generation
Oil palm cultivation contributes to the development of rural areas, generating direct and indirect employment in local communities, especially during the harvesting and maintenance phase.
Economic profitability:
The price of palm fruit is linked to the international market in dollars, which protects producers from local instability. Profit margins are high due to the growing demand for biofuels.
Resistance to adverse conditions:
Oil palm is a robust crop, able to withstand drought, heavy rains and other adverse weather conditions, reducing the risk of crop failure.
Commitment to sustainability:
Certification of sustainable practices, such as RSPO, encourages a more responsible approach, ensuring that oil palm cultivation minimizes environmental impact and optimizes resource use.
