Thai palm oil production
The majority of Thailand’s oil palm plantations are located in the south, specifically in the provinces of Surat Thani, Krabi, and Chumphon, which together contain more than half of the nation's oil palm plantations. This indicates that the domestic industry is highly geographically concentrated. The collected oil palm is processed in oil palm collection centers and then further refined in crude palm oil (CPO) mills.The domestic consumption of CPO in Thailand can be divided into two categories: CPO that is either being used for refined oil production, or for biodiesel production. Nearly 58 percent of crude palm oil was further refined in 2022. Refined palm oil is used in Thailand’s food industry to make snacks, condensed milk, instant noodles, ice cream, margarine, oleochemical products, vitamins, and more. It is also used in other industries to make products like cosmetics, lubricants, soap, and shampoo. Biodiesel (B100) production accounts for the other 42 percent of the domestic market.
Sustainability – chances and barriers
The sector in the country is driven by smallholders who grow oil palm, accounting for the vast majority of the output of palm oil. Smallholders play a vital role in Thailand's palm oil sector but still face numerous obstacles, such as access to microfinance programs, certification requirements connecting them to international markets, and efficient plantation management.Thai producers who want to be accredited frequently need to band together as a substantial portion of their output comes from very small, family-owned plantations, unlike in the Malaysian and Indonesian palm oil industries where production is primarily controlled by larger firms. It is estimated that roughly five percent of all palm plantations were under the management of RSPO-recognized enterprises in Thailand in 2023. Nonetheless, with the demand for sustainably sourced products increasing worldwide, Thailand has a chance to establish itself as a leader in ethically produced palm oil and significantly contribute to the certified area for sustainable palm oil production worldwide. Cooperation between the government, industry leaders, non-governmental organizations, and the local communities is essential to balance environmental preservation and economic growth.
