Palm oil processing and extraction begin with harvesting ripe fruit and continue through steps like pressing, separation, and purification to produce crude, red, refined, and kernel oils for various uses.
As a local oil palm farmer and processor, I grew up watching my family handle every step of getting oil from the fruit.
Whether it was crude palm oil, red palm oil, or palm kernel oil, each type had its place in our kitchen and community.
We didn’t refine the oil further into the clear, store-bought version; those machines were beyond our reach, but what we made served generations.
The process wasn’t just work. It was part of our rhythm, from harvest to boiling and pressing.
The scent of red oil simmering on the fire is the motivation we have ever needed.
If you’ve ever wondered how palm oil ends up in your kitchen, cosmetics, or everyday products, it all starts with the oil palm fruit.
Each fruit holds two sources of oil, the soft mesocarp and the inner kernel, and both play a role in palm oil processing.
As you look deeper into the steps that turn these fruits into crude, refined, red, and palm kernel oils, you’ll see just how much detail and care go into palm oil extraction.
From the farms in tropical regions to the processing mills, this journey affects not just products but entire communities.
Understanding how it works gives you a better view of the global reach of the oil palm tree and its growing demand in food and industrial markets.
In this introduction, you’ll get familiar with the basics before we break down how each step in palm oil processing works.
If you missed out introductory guide on what palm oil is, check it out here.
Table of Contents
- Main Points
- What is Palm Oil Processing and Extraction?
- Brief Overview of the Palm Oil Industry
- Traditional vs Modern Methods of Palm Oil Processing
- Stages of Palm Oil Processing and Extraction
- From Fruit to Crude Palm Oil (CPO)
- The Journey of Red Palm Oil (RPO)
- Producing Refined Palm Oil (RBD Palm Oil)
- Producing Palm Kernel Oil (PKO)
- Comparing the Four Palm Oils at a Glance
- Byproducts and Derivatives of Palm Oil Processing and Extraction
- Frequently Asked Questions
- Conclusion
Main Points
- Processing Begins with Harvest: Palm oil processing starts right after harvesting, involving sterilization, digestion, pressing, clarification, and sometimes refining for clean, usable oil.
- Different Oils from One Fruit: The oil palm fruit yields crude, red, refined, and palm kernel oils through separate but connected extraction and processing steps.
- Sterilization Affects Quality: Steam sterilization softens fruit, halts enzymes, and prepares it for clean separation, improving oil yield and shelf life.
- Kernel Oil Has Separate Process: Palm kernel oil comes from dried nuts, extracted by pressing or solvents, different from mesocarp-based oils.
- Waste Becomes Resource: Byproducts like fiber, shells, husks, and PFAD fuel boilers, enrich soil, or become products like soap and biodiesel.
What is Palm Oil Processing and Extraction?
Palm oil processing and extraction is the process of turning oil palm fruit into usable oil through a series of steps that include harvesting, sterilizing, pressing, and refining.
It involves separating the four types of palm oil from both the fleshy pulp and the inner kernel, and preparing it for various uses in food, cosmetics, and industry.
Palm Oil Processing: The Full Chain from Fruit to Finished Oil
Palm oil processing starts the moment the fruit is harvested and continues well after extraction.
It includes all the steps: sterilizing the fruit, removing it from the bunch, digesting it, pressing, clarifying, and sometimes refining.
Refining involves removing impurities through degumming, neutralization, bleaching, and deodorization.
These steps make the oil safer, clearer, and more stable. If you want clean, shelf-ready palm oil used in packaged foods or skincare, it’s the processing stage that makes that happen.
Each part of this chain affects how useful and safe the final product will be.
Palm Oil Extraction: The Step Where Oil Is Separated
When you hear about palm oil being “extracted,” it means the oil is physically pulled out of the fruit.
This happens after the fruit is sterilized and softened. Mechanical presses are usually used to squeeze out crude palm oil from the fleshy mesocarp, while separate machines crack the seed to extract palm kernel oil.
The way oil is extracted affects how much you get and the quality of that oil.
Factors like how ripe the fruit is or how fast it’s processed can change the texture, color, and shelf life of the oil.
Why People Confuse the Two
It’s easy to mix up extraction and processing because extraction is the step where the oil finally appears.
For many, that feels like the main event. But extraction is only one part of the larger processing journey.
When you understand the difference, you can better judge product quality, trace how it was made, and make smarter choices, especially if you care about food safety, health, and environmental impact.
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Brief Overview of the Palm Oil Industry
Palm oil processing and extraction support one of the most widely used oils in the world.
As of 2025, global palm oil production stands at approximately 80.7 million metric tons, with Indonesia and Malaysia contributing over 80% of the total supply.
This industry fuels local economies, provides jobs, and supports millions of smallholder farmers.
But the growth comes with challenges. Expanding plantations often lead to deforestation, which threatens wildlife like orangutans and Sumatran tigers and contributes to climate change.
These concerns have sparked global demand for better practices.
Groups like the Roundtable on Sustainable Palm Oil are pushing for responsible sourcing.
Some producers are also turning to agroforestry, planting palm oil alongside native trees to reduce harm.
Understanding where palm oil comes from helps you make informed choices.
Supporting sustainable producers means helping protect both the people and ecosystems behind the products you use every day.
Traditional vs Modern Methods of Palm Oil Processing
Palm oil processing has evolved from labor-intensive, community-based practices to mechanized, industrial-scale systems.
Both traditional and modern methods play key roles in producing the four types of palm oil, though each approach has its advantages and limitations.
Traditional Methods: The Roots of Palm Oil Production
In many rural communities, palm oil is still processed using time-tested methods passed down through generations.
Fresh fruit bunches are boiled in large drums or pots, then manually pounded or pressed to extract the crude palm oil.
The oil is skimmed off the top after settling or boiling to separate water and fiber, producing what we know as red palm oil (RPO).
These methods preserve the oil’s rich color and nutrients, particularly beta-carotene and vitamin E.
Palm kernel oil (PKO) is also processed traditionally by sun-drying the nuts, cracking them manually, and roasting or pressing the kernels to yield a creamy, aromatic oil used in cooking, soap-making, and skincare.
While these methods are time-consuming and labor-intensive, they remain sustainable, accessible, and deeply rooted in culture.
However, oil quality and shelf life can vary due to a lack of precise temperature and hygiene control.
Modern Methods: Efficiency, Purity, and Scale
In contrast, modern palm oil processing facilities use mechanical systems and standardized procedures to produce large quantities of oil with consistent quality.
After steam sterilization of fruit bunches, automated threshers, digesters, and presses extract crude palm oil (CPO) from the mesocarp.
The oil then undergoes clarification, drying, and storage.
For broader market use, this CPO is refined through degumming, neutralization, bleaching, and deodorization to yield refined palm oil, a clear, odorless, and shelf-stable product used in cooking, margarine, and processed foods.
Red palm oil, in industrial settings, is produced by controlling clarification without full refining, preserving its nutrient content while ensuring better hygiene and packaging.
Palm kernel oil, in modern plants, is extracted after mechanical cracking and drying of kernels, using screw presses or solvent extraction.
The oil is then filtered and refined depending on its end use, ranging from food to cosmetics and industrial products.
Stages of Palm Oil Processing and Extraction
Understanding how palm oil is processed and extracted helps you see what goes into each bottle of oil you use.
From the farm to final storage, each step affects the quality, yield, and safety of the oil.
Sterilization in Palm Oil Processing
Sterilization is the process that begins after harvesting. You expose the fresh fruit bunches to high-pressure steam, softening the fruit and stopping enzyme activity that could spoil the oil.
This stage helps reduce the formation of free fatty acids, which can shorten shelf life. Steam penetrates the outer layers, loosening the fruits and preparing them for separation.
It also reduces the chance of microbial growth, making the oil safer to process.
Steam sterilization is the most used method, but alternatives like hot water or chemical sterilization exist.
Still, steam remains the most efficient. Getting this step right is key to good oil quality.
Threshing, Digestion, and Pressing
Once sterilized, the fruit moves to threshing, where shaking machines separate it from the bunch.
Proper threshing ensures minimal waste and maximum fruit recovery. After separation, the fruits go into digestion.
There, they’re heated and churned to break down the pulp and release the oil. You usually heat to around 85 to 100 degrees Celsius to stop enzyme activity and ease extraction.
Next is pressing, where machines squeeze the oil from the digested pulp.
You can use hydraulic or screw presses depending on your scale. Pressing decides how much crude palm oil you get and how clean it will be.
Clarification, Drying, and Storage
After pressing, the crude palm oil still has water and solids. Clarification removes these impurities through sedimentation or centrifugation, leaving a clearer oil.
Next, you dry the clarified oil to remove leftover moisture.
Even small amounts of water can cause spoilage, so drying is a must. It’s usually done with gentle heating to preserve the oil’s nutrients.
Once dried, the oil goes into storage. Proper storage means keeping it in airtight, food-grade containers away from heat and light.
This prevents oxidation and spoilage. Regular checks during storage help maintain oil quality and make sure it’s safe for use.
Cold Press vs Hot Press Extraction
The way you press the fruit also affects oil quality. Cold press extraction uses no added heat.
It keeps more nutrients and flavor because the oil doesn’t get exposed to high temperatures.
Cold-pressed palm oil is popular for health-focused or gourmet products.
Hot press extraction adds heat before pressing to help break down the fruit and release more oil. It gives higher yields and works well for large-scale production.
But it can reduce flavor and destroy some heat-sensitive nutrients.
Your choice between cold and hot pressing depends on what matters more, flavor and nutrition, or volume and speed in production.
For the Palm Kernel Extraction Process
However, palm kernel extraction follows a separate process as we are going to see below.
After cracking and drying the kernels, oil is extracted using screw presses or solvents. Proper moisture control improves yield, prevents spoilage, and ensures the oil stays clean and stable.
From Fruit to Crude Palm Oil (CPO)
Crude palm oil (CPO) is the first oil extracted from the fleshy mesocarp of the oil palm fruit.
This initial extraction sets the foundation for two other oils: red palm oil and refined palm oil.
Processing begins with steam sterilization, which loosens the fruit and stops spoilage enzymes.
Threshing follows, separating the fruits from the bunch. Next, digestion breaks down the pulp through heating and agitation. Finally, pressing releases the thick, reddish oil known as crude palm oil.
At this stage, the oil still contains moisture and impurities. It’s either turned further into red palm oil through the separation of the impurities and pulp, or refined into neutral-tasting palm oil used in packaged foods, margarine, and cooking oils.
Beyond food, crude palm oil is a key ingredient in soaps, cosmetics, lubricants, animal feed, and even biofuels.
Its natural antioxidants, like carotenoids and tocopherols, also add value in health and wellness products.
Understanding how CPO is extracted helps you see how one fruit can supply so many global needs.
For a full breakdown of the extraction and processing stages, visit our crude palm oil processing and extraction page.
The Journey of Red Palm Oil (RPO)
Red palm oil (RPO) is derived directly from the crude palm oil (CPO) extracted from the fruit’s mesocarp.
To produce RPO, the CPO is not fully refined. Instead, it undergoes either traditional or modern clarification methods that preserve its natural red-orange color.
Traditionally, the freshly extracted CPO is boiled to separate the oil from water, pulp fibers, and chaff.
After boiling, the oil rises to the top, where it is skimmed off, leaving the heavier residues behind. This method is common in small-scale village settings.
In modern processing, clarification tanks and settling basins replace open boiling.
The crude oil is gently heated and passed through filters or decanters to remove solid particles while retaining its nutrient-rich composition.
This careful separation keeps the beta-carotene and tocotrienols intact, giving the oil its vibrant color and thicker texture.
Red palm oil is the result of selective processing, not full refining. It’s bottled and sold after this clarification stage without bleaching or deodorizing.
To see a full breakdown of the traditional and industrial methods used in red palm oil extraction and processing, visit our dedicated red palm oil processing and extraction page.
Producing Refined Palm Oil (RBD Palm Oil)
Refined palm oil, also called RBD palm oil, is the most popular and widely used by food industries across the globe among the four types of palm oils.
It is made by further processing either crude palm oil (CPO) or red palm oil (RPO).
Both oils are refined through several stages to remove impurities, odors, and pigments, resulting in a neutral oil that meets food and industrial standards.
The process begins with degumming, where water or acid is added to remove gums and impurities.
Then comes neutralization, which removes free fatty acids using an alkali solution. These steps help improve shelf life, color, and stability.
Next is bleaching, where the oil is filtered through bleaching earth or activated carbon to absorb color pigments and residual contaminants.
Finally, deodorization is done under high heat and vacuum to remove smell and flavor, producing a clean, neutral oil.
Refined palm oil is the most common type used worldwide. It serves as the base for palm olein (used in cooking oils and margarine) and palm stearin (used in solid fats like shortenings).
The refining process makes the oil suitable for mass food production, snacks, and household products.
To see how CPO and RPO are refined step by step, visit our refined palm oil processing and extraction page.
Producing Palm Kernel Oil (PKO)
Growing up in a family that processed palm oil by hand, we never overlooked the kernels.
After extracting the crude palm oil, we’d gather the leftover nuts, dry them in the sun, and store them until cracking day.
It was hard work, but the payoff was the thick, creamy palm kernel oil, treasured for cooking, soap-making, and skincare.
We’d crack the dried nuts with stones or simple hand crackers, then separate the shells from the kernels by hand or with water flotation.
Once cleaned and dried again, the kernels were roasted and pressed using a local screw press.
The rich oil that flowed out had a distinct aroma and long shelf life. We didn’t use chemicals, just heat, pressure, and time.
On a larger scale, mechanical and solvent extraction are used. Mechanical methods press oil from the kernel, while solvent extraction dissolves it for maximum yield.
These industrial methods offer more efficiency, but many rural communities still rely on the traditional way.
Palm kernel oil isn’t the same as red or crude palm oil. It’s lighter, rich in saturated fats, and widely used in cosmetics and processed foods.
To understand each step in detail, visit our palm kernel oil extraction and processing page.
Comparing the Four Palm Oils at a Glance
Comparing the processing and extraction of the four types of palm oil:
| Type of Palm Oil | Source | Processing Method | Color and Texture | Key Uses | Notable Features |
|---|---|---|---|---|---|
| Crude Palm Oil (CPO) | Extracted from the fruit’s mesocarp | Sterilization, digestion, pressing | Reddish-orange, semi-solid at room temp | Margarine, snacks, cooking oil, biofuel | High in beta-carotene, minimally processed, nutrient-rich |
| Red Palm Oil | Extracted from CPO with minimal refining | Boiling and settling (traditional) or basic filtration | Deep red-orange, thicker texture | Health foods, traditional cooking in Africa and Asia | Rich in carotenoids and vitamin E, strong flavor |
| Refined Palm Oil | Refined from CPO or red palm oil | Degumming, neutralization, bleaching, deodorization | Clear or pale yellow, neutral scent | Frying oil, baked goods, processed foods | Neutral taste, long shelf life, most widely used in the food industry |
| Palm Kernel Oil (PKO) | Extracted from the seed (kernel) | Nut drying, cracking, pressing or solvent extraction | Light yellow, solid at room temp | Soaps, cosmetics, confectionery, industrial margarine | High in saturated fat and lauric acid, stable at high heat |
Byproducts and Derivatives of Palm Oil Processing and Extraction
When you process oil palm fruit, you’re not just getting crude palm oil or palm kernel oil.
You also produce valuable byproducts that can reduce waste, cut costs, and support new uses across farming, energy, and small-scale industries.
Here’s how to make the most of what’s left behind.
Empty Fruit Bunches: From Waste to Fuel and Local Soap
After oil is extracted from the fruit, you’re left with empty fruit bunches (EFB).
Instead of dumping them, you can compost them or use them as mulch to improve soil health.
EFB can also be dried and burned to power boilers or processed into pellets for renewable energy. In some rural communities, they’re burned to ash and used in making local black soap.
With simple tools and planning, you can turn this bulky waste into income, soil nutrition, or clean energy, giving the fruit bunches a second life after oil extraction.
Mesocarp Fiber: Fuel for Boilers and Natural Fertilizer
Mesocarp fiber is the stringy pulp left after you press out crude palm oil.
At palm oil mills, it’s one of the most used materials for fueling boilers, replacing the need for external fuel sources.
Its high fiber content burns well and helps create steam for sterilization and pressing stages.
Beyond energy, some farmers mix this fiber with animal manure to create organic compost.
This practice improves soil fertility and cuts down on the cost of chemical fertilizers.
By repurposing mesocarp fiber, you reduce waste, save energy, and improve farm productivity, all from material that would otherwise be thrown away.
Palm Kernel Shells: Small Size, Big Energy
After cracking palm nuts to get the kernel, what’s left is the palm kernel shell (PKS).
These small, hard shells are packed with energy and are widely used as biomass fuel.
In industrial settings, they power boilers, while in rural areas, they are used in cooking and heating.
Palm kernel shells are also used in road construction, as a component in activated carbon, and even as a filtration medium in water treatment systems.
If you’re running a palm mill, collecting and selling these shells can open up a new income stream while supporting cleaner, renewable energy markets at the same time.
Husks and Spikelets: Simple Fuel for Everyday Use
During palm fruit processing, husks and spikelets, those small, dry parts from the fruit bunch, usually pile up fast.
Most of the time, people dry them and use them as firewood. In areas with limited access to gas or electricity, they’re a reliable source of cooking fuel.
Some households and small mills also feed these byproducts into simple burners or traditional ovens.
They burn hot and fast, making them perfect for quick cooking or boiling water.
Using husks and spikelets this way reduces waste and saves money on energy, especially in farming communities that rely on what’s available from the land.
Palm Fatty Acid Distillate (PFAD): From Refining to Revenue
When crude palm oil is refined, the free fatty acids are removed, and what’s left is palm fatty acid distillate (PFAD).
Though it’s not used directly in cooking, PFAD has solid value. You’ll find it in products like candles, bar soaps, cosmetics, and livestock feed.
It’s also attracting attention as a biodiesel ingredient because of its low cost. What used to be a waste product now supports several industries.
If you’re in palm oil refining, PFAD isn’t just a byproduct; it’s a potential income stream that helps you get more value from every batch of crude oil you process.
Frequently Asked Questions
What is the difference between palm oil processing and extraction?
Extraction is one step in processing; it pulls oil from the fruit, while processing covers the full journey to usable oil.
How is crude palm oil made?
Crude palm oil is extracted by sterilizing, digesting, and pressing the mesocarp pulp of ripe oil palm fruit bunches.
What are the byproducts of palm oil processing?
Byproducts include empty fruit bunches, mesocarp fiber, palm kernel shells, husks, and PFAD used for energy, compost, soap, or biofuel.
Is red palm oil the same as refined palm oil?
No. Red palm oil is minimally processed to retain color and nutrients; refined palm oil is odorless, neutral, and fully purified.
How is palm kernel oil different from palm oil?
Palm kernel oil comes from the fruit’s seed and is richer in saturated fat, while palm oil comes from the outer pulp.
Conclusion
Palm oil processing and extraction are more than industrial terms—they represent a chain of steps that connect farmers, communities, and global industries.
From harvesting ripe fruit to separating oils from pulp and kernel, each stage adds value and ensures the oil is usable, safe, and versatile.
Whether you’re cooking with red palm oil, using refined palm oil in snacks, or benefiting from soap made with palm kernel oil, it all begins with understanding the journey.
The process also yields byproducts that fuel rural households, reduce waste, and even support biofuel industries.
By knowing how your oil is made, you can make smarter, sustainable choices that honor the land and the hands behind every drop.
References
I am Chimeremeze, a writer and researcher with deep-rooted experience in processing, consuming, and utilizing locally produced palm oil products, including red palm oil, palm kernel oil, and refined palm oil. Growing up in a community surrounded by towering palm trees, we embraced every part of this nature’s gift—drinking its wine, using the fronds for fencing, crafting brooms from its leaves, and turning its sturdy trunks into communal benches.
My passion for the palm tree and its countless benefits drives my research and writing, shedding light on its significance to West Africa and beyond. I also explore the impact of cassava, another staple crop that has shaped Africa and influenced the world.