What Is Crude Palm Oil? Production, Quality and Storage

In Ntigha, the first thick liquid that runs from the press is what we call crude. Nobody sells it like that at home, because it goes back on the fire to become red oil. Industry uses the same name, crude palm oil, for a commodity shipped by tanker load.

Crude palm oil sits at the center of the whole palm oil business, yet few buyers can say exactly what it is.

It is the raw oil that every mill produces before anyone clarifies, refines, or exports it.

This page sets out what crude palm oil is, how mills produce it, and what it becomes after it leaves the mill.

It also covers quality grades, simple and laboratory tests, bulk storage and the main mistakes that spoil good oil.

Village practice and research appear side by side, with each one clearly labeled so you always know exactly which is which.

Looking for pure red palm oil for cooking? You can shop for fresh red oil straight from my family farm.

What Is Crude Palm Oil (CPO), Different from Red Palm Oil?

Crude palm oil, usually shortened to CPO in the trade, is the raw, unrefined oil pressed from the fleshy pulp of the oil palm fruit.

It comes straight from the mill after the fruit is sterilized, digested and pressed, before any refining takes place.

Its color runs from orange to deep red because it still holds natural carotenoids from the fruit.

In industry, crude palm oil is the bulk feedstock that refineries turn into cooking oil, margarine and many other products.

In village mills, the same raw oil is clarified further and sold as red palm oil for cooking.

Crude palm used for a healthy banga soup - a Nigerian delicacy

Crude Palm Oil at a Glance

FeatureCrude palm oil
Comes fromThe fleshy pulp of the oil palm fruit
ColorOrange to deep red
TextureSemi solid at cool temperatures, liquid when warm
Made atVillage mills, small mills and industrial mills
Main buyersRefineries, traders, oleochemical and biodiesel plants
BecomesRed oil, refined oil, olein, stearin, oleochemicals, biodiesel
Biggest quality threatFree fatty acids from bruised or old fruit

Village Crude and Industrial Crude

People use the word crude in two slightly different ways, which explains much of the confusion around it. In my community, crude is the first thick oil out of the press, full of water and fiber.

Families in Ntigha boil that crude again and decant it, leaving clean red oil on top and sludge below.

We sell the red oil, never the crude, and the sludge is burned as fuel or used to kill weeds.

That is my family’s practice and my community’s language, not an industry definition.

Industrial mills use crude palm oil to mean the oil that has already been pressed, clarified and dried. That oil is ready for sale to a refinery, even though it has never been refined.

PointVillage crude in NtighaIndustrial crude palm oil
StageFirst thick liquid from the pressPressed, clarified and dried mill oil
ContainsWater, fiber and oil togetherMostly oil, with little water or dirt
What happens nextBoiled and decanted into red oilSold to refineries or traders
Sold as crudeNoYes, by the ton

Red palm oil and crude palm oil are therefore close relatives, not strangers. The full comparison sits in comparing red, crude and refined oil, while red palm oil for the kitchen covers the cooking side.

There is one more twist in the story that many buyers outside Africa never hear about.

A 2000 paper in the Food and Nutrition Bulletin describes a refined red palm oil made from crude oil by deacidification and deodorization with molecular distillation.

That process keeps up to 80 percent of the original carotene, so some products sold as red palm oil abroad are lightly refined.

How Crude Palm Oil Is Produced in a Mill

Every mill, from a village compound to a factory, follows the same basic steps. An FAO guide to small scale palm oil processing in Africa sets out these stages for mills of every size.

A bowl of boiled and shredded palm fruits ready be processed to get crude palm oil
StepWhat happensWhy it matters
Bunch receptionFresh bunches arrive and are weighedThe mill cannot improve poor fruit, only protect it
ThreshingFruit is separated from the bunch stalksLoose fruit cooks and presses evenly
SterilizationFruit is cooked with hot water or steamStops the enzymes that spoil oil
DigestionFruit is pounded or beaten while hotBreaks the cells that hold the oil
PressingPresses squeeze oil from the pulpSeparates oil from fiber and nuts
ClarificationOil is boiled with water and settledRemoves fiber, dirt and sludge
DryingRemaining moisture is removedSlows further spoilage in storage

In Ntigha, the same steps happen with a boiling pot, a huge mortar and pestle, a pressing machine and decanting basins.

Industrial mills use steam sterilizers, digesters and screw presses instead, but the logic stays the same.

The FAO guide explains that sterilization destroys the enzymes that split oil, loosens fruit from the stalk and makes the pulp tender.

Skipping or rushing that step leaves the finished oil open to rapid spoilage in storage.

Processing for all four oils, from red oil to refined and kernel oil, is covered in palm processing from start to finish.

What Crude Palm Oil Becomes

Crude palm oil rarely reaches consumers in its raw form outside West Africa. Most of it moves on to refineries and factories that turn it into other products.

  • Red palm oil. Village mills clarify crude into red oil for cooking, keeping its color and flavor.
  • Olein and stearin. Refiners split the oil into a liquid part for cooking oil and a solid part for margarine and shortening.

The steps that take crude oil to the clear golden product are set out in each stage of palm oil refining. The wider picture of factory demand sits in industry’s many uses for palm oil.

The same mill that makes crude oil also produces kernels, which yield a different oil covered in the oil pressed from kernels. Mills also produce oily wastewater that needs treatment, as set out in the wastewater mills produce.

Quality and Grades

Buyers judge crude palm oil mainly by its free fatty acid content, its moisture and its dirt. Low levels of all three mean the oil will refine easily and keep longer.

Free fatty acids form when enzymes in the fruit break down the oil, a process that starts when fruit is bruised or left too long.

The FAO guide notes that fresh, unbruised ripe fruit holds less than 0.3 percent free fatty acids.

The same guide warns that bruised tissue can reach 60 percent free fatty acids within an hour. It recommends processing fruit within about 48 hours of harvest to keep oil quality high.

Quality measureWhat it tells youMain cause of poor results
Free fatty acidsHow much the oil has broken downBruised, overripe or old fruit
MoistureHow much water remainsPoor drying after clarification
ImpuritiesHow much dirt and fiber remainPoor filtering or settling
Color and caroteneHow fresh and well handled the oil isOverheating or long storage
Rancid smellIf oxidation has set inAir, light and heat in storage

A 2020 study in the journal OCL found that industrial crude palm oil at about 3 to 4 percent free fatty acids meets export standards.

It reported that artisanal crude oil from Cameroonian markets can exceed 10 percent free fatty acids.

The authors noted that local cooks accept higher free fatty acids for flavor in many traditional dishes.

Refineries, by contrast, pay less for such oil, because removing free fatty acids costs money and loses oil.

Good quality starts in the field, with ripe bunches cut on time and handled with care. The method for picking bunches at peak ripeness gives mills the best fruit to start with.

How to Test Crude Palm Oil

Traders and buyers test crude palm oil in two ways, with simple checks at the point of sale and laboratory tests for bulk deals.

Both approaches matter, because looks alone cannot reveal free fatty acid levels.

TestHow it worksWho uses it
Look and smellCheck color, clarity and any sour or rancid smellMarket buyers and small traders
Settling checkLet a sample stand and look for water or dirt at the bottomMarket buyers and small mills
Cold checkWatch how the oil thickens when coolMarket buyers
Free fatty acid testTitration in a laboratory or with a field kitMills, refineries and exporters
Moisture and impurity testHeating and filtering a weighed sampleMills, refineries and exporters

Simple checks can catch dirty, watery or rancid oil, but only laboratory tests give the numbers that bulk contracts demand.

Buyers of red oil for cooking can also use home checks for red oil to spot added dyes and other tampering.

How to Store and Handle Crude Palm Oil

Crude palm oil keeps well when it is clean, dry and kept at the right temperature. Water, air, light, heat and certain metals all speed up spoilage in stored oil.

The FAO guide notes that large mills hold crude oil warm in tanks at around 50 degrees Celsius. Small mills usually store oil in drums at room temperature, which suits short storage before sale.

The Codex code of practice for storing and transporting edible oils in bulk recommends 32 to 40 degrees Celsius for palm oil in bulk storage. It recommends 50 to 55 degrees Celsius for loading and discharge, when the oil must flow freely.

The same code warns against raising the temperature by more than 5 degrees Celsius in 24 hours. It also advises keeping tanks clean and dry, filling from the bottom to avoid air, and avoiding copper and its alloys.

DoDo not
Use clean, dry, airtight tanks or drumsStore oil in wet or dirty containers
Heat bulk oil slowly and evenlyOverheat oil or heat it quickly
Fill tanks from the bottomLet oil splash and mix with air
Keep oil away from sunlightLeave drums open to light and rain
Sell or use the oldest oil firstPump fresh oil into old stock
Use steel tanks and fittingsLet oil touch copper or brass

The FAO guide adds that moisture in crude oil should fall to about 0.15 to 0.25 percent to stop free fatty acids rising.

Drying the oil well before storage is therefore one of the cheapest ways to protect its value.

Crude Palm Oil in Nigeria

Nigeria produces most of its crude palm oil in small mills and village compounds rather than large factories.

A palm oil strategy brief by the PIND Foundation found that 80 percent of Nigerian production came from small scale producers and processors.

That structure means much Nigerian crude never reaches a refinery as crude at all. It is clarified into red oil close to the farm and sold in local markets, just as it is in Ntigha.

Large plantations and mills do supply crude oil to refineries and food companies, but they cannot meet national demand alone.

The gap between small mill oil and refinery standards is one reason refiners pay attention to quality tests.

FeatureSmall or village millIndustrial mill
EquipmentPots, mortars, hand or small motor pressesSteam sterilizers, digesters, screw presses
Fruit handledA few bunches to a few tons a dayMany tons an hour
Typical buyersHouseholds, local traders, market sellersRefineries, traders, exporters
Free fatty acidsCan be high if fruit waits or is bruisedKept low through fast processing
StorageKegs and drums at room temperatureHeated steel tanks

Common Mistakes That Lower Crude Oil Quality

Most quality losses in crude palm oil come from a handful of avoidable mistakes. Each one costs money, either through lower prices or through oil that spoils before sale.

MistakeWhat it does to the oilSimple fix
Leaving cut bunches for daysFree fatty acids rise quicklyProcess within about two days of harvest
Rough handling of bunchesBruising starts enzyme damageLower bunches gently and avoid throwing them
Under cooking the fruitEnzymes survive and keep breaking down oilSterilize fully before pounding or pressing
Poor clarificationWater and dirt stay in the oilBoil, settle and decant with patience
Wet or dirty containersWater feeds spoilageDry and clean every container first
Overheating in storageColor fades and oil oxidizesHeat gently and only when needed

None of these fixes needs expensive equipment, only steady care and good timing at every step. Small mills that follow them can produce crude oil that refiners and traders are happy to buy.

The Crude Palm Oil Trade

Crude palm oil is the form of palm oil that most global trade and price headlines refer to.

Mills sell it to refineries, and traders buy and sell it through futures contracts and long term supply deals.

Prices, contracts and the forces that move them are covered in crude palm oil prices and trading.

For the full picture of how all four oils compare, see how all four palm oils compare on the Palm Oil Guide.

What Research Shows About Crude Palm Oil

Research on crude palm oil centers on its color, its breakdown into free fatty acids and its handling after the mill.

Four sources stand out for anyone producing, buying or storing crude palm oil today.

A 2003 review in the Asia Pacific Journal of Clinical Nutrition describes crude palm oil as rich orange red because of its high carotene content.

It reports carotene levels of about 500 to 800 parts per million and explains that refining removes them.

The FAO processing guide shows how quickly free fatty acids rise in bruised fruit, from under 0.3 percent to as much as 60 percent.

The 2020 OCL study confirms that bruising during harvest, transport and storage activates the enzymes behind that rise.

The Codex code of practice sets clear temperature ranges for storing and moving palm oil in bulk.

The 2000 Food and Nutrition Bulletin paper shows that gentle refining can keep most of the carotene in a refined red oil.

These sources have limits worth stating plainly before you rely on them. The OCL study used laboratory extraction and Cameroonian market oil, not Nigerian village mills.

The Codex ranges cover bulk tanks and ships, not the drums and kegs used by small producers.

Conclusion

In Ntigha, crude was never something my family sold, only a short stage on the way to finished red oil. For industry, crude palm oil is the product itself, traded, tested and stored by the ton.

Both worlds share the same truth, that good oil starts with ripe, fresh, carefully handled fruit.

Process the fruit quickly, dry the oil well, and keep it clean, cool and away from air and light.

From a single drum to a full shipload, test before you pay and store every batch with care.

Frequently Asked Questions

What is crude palm oil used for?

Refineries turn crude palm oil into cooking oil, margarine and food fats. Factories also use it for soaps, cosmetics, oleochemicals and biodiesel, while village mills make red oil.

Is crude palm oil the same as red palm oil?

They are close relatives from the same fruit pulp, but not identical. Crude palm oil is raw mill oil, while red palm oil is clarified further for cooking.

What causes high free fatty acids in crude palm oil?

Bruised, overripe or old fruit lets natural enzymes break down the oil. Slow processing, poor drying and wet storage also raise free fatty acids and lower its value.

How should crude palm oil be stored?

Store crude palm oil in clean, dry, airtight steel containers away from light. Codex guidance recommends 32 to 40 degrees Celsius for palm oil kept in bulk storage.