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Glossary

Acronym
 
Name
 
Description
 
3 MCPD
3-monochloropropanediol (3-MCPD)
 3-MCPD esters (a chemical compound derived from an acid) is a food processing contaminants found in some processed foods and vegetable oils
AMJ
April, May, June
A term used to denote forward delivery months used in negotiation and pricing. Others include JFM for Jan-Feb-Mar, JAS for Jul-Aug-Sept and OND for Oct-Nov-Dec
APROBI
Asosiasi Produsen Bofuels Indonesia
Indonesia Biofuels Producer Association
BAP
Biodiversity Action Plan
A process used to access how a company’s activities affect biodiversity and renewable natural resources and how these impacts can be managed andmitigated.
BMP
Best Management Practices
Management strategies used to prevent or reduce pollution generated from an activity. In terms of palm oil pollution, BMPscould be water management, pest control and fertiliser management.
BPS
Badan Pusat Statistik – Indonesia
Statistics Indonesia, known in Indonesia as BPS, is a non-departmental government institute of Indonesia that is responsible for conducting statistical surveys. Its main customer is the government, but statistical data is also available to the public.
Biofuel
Biofuel
A fuelderived from recently living biological material such as harvested plant matter or animal waste
Bleaching
Bleaching
The oil is mixed with bleaching earth ( bentonite calcium) in a vaccum room to remove impurities and color pigments in the palm oil
CNF
Cost and Freight
Normally its cost and freight at a discharge port
CCNO
Crude Coconut Oil
CCNO is unrefined coconut oil that has been obtained directly from the coconut and the oil extraction process
CIF
Cost, Insurance and Freight
Normally its Cif a discharge port . It is a trade term requiring the seller to arrange the for the carriage of goods by sea to a port destination and provide the buyer with necessary documents to obtain the goods
 
CNO
Coconut Oil
CNO is an edible oil extracted from kernel of mature coconuts harvested from the coconut palm
CPKO
Crude Palm Kernel Oil
An edible palm oil derived from the kernel of oil palm. Kernel oil differs from palm oil as it is extracted from palm seed. Palm kernel oil and coconut oil form the main feedstock of laurics oil widely used in personal and home care products.
CPO
Crude Palm Oil
An edible vegetable oil which is extracted from the reddish pulp of fruit of oil palms. CPO can be exported or further refined to downstream oils, like RBD Palm olein which is the most common cooking oil. 
CPOPC
Council of Palm Oil Producing Countries
Council of Palm Oil Producing Countries (CPOPC) is an intergovernmental organization for palm oil producing countries.
CSPO
Certified Sustainable Palm Oil
CSPO is certified palm oil produced according to the principles of the Roundtable on Sustainable Palm Oil (RSPO)
Degumming
Degumming
The gum and fatty acid in crude palm oil and crude palm kernel oil are separated together with other impurities such as iron, copper and trace minerals by the applying phosporic acid
Deodourising
Deodourising
The odour and taste of oil is removed when the oil is steamed at high temperatures of between 240 degrees to 260 degrees and cooled at room temperature
EFB
Empty Fruit Brunch
Empty Fruit Brunches are a secondary product of the palm oil milling process, left over after the fruits from the fresh fruit brunches have been removed for oil extraction
Eksocarp
Eksocarp
The outer layer of the pericarp of a fruit.
Endocarp
Endocarp
The innermost layer of the pericarp which surrounds a seed in a fruit. It may be membranous (as in apples) or woody (as in the stone of a peach or cherry).
FFA
Free Fatty Acid
A nonsterified fatty acid which can be used as an instant source of energy by many organs and onverted by the liver into ketone bodies. Palm oil is composed of fatty acids.
FFB
Fresh Fruit Branches
The oil palm tree starts to bear fresh fruit branches after three years. Each fruit on a fruit branch contains 50% oil
FH
First Half
Term used to described Jan to Jun period
FOB
Free on Board
Normally its fob a load port. FOB is a term that indicates whether the seller or the buyer has liabiity of goods that are damanged or destroyed during shipment between the two parties. FOB shipping point means the buyer is at risk while the goods are being shipped and FOB destination means that the seller retains the risk of loss until the goods reach the buyer
FOSFA
Federation of Oil Seeds Fats Association, Europe
A professional international contract issuing and arbitral body concerned exclusively with the world trade in oilseeds, oils and fats
FPIC
Free, Prior and Informed Consent
FPIC is the principle that a community has the right to give or withhold its concent to proposed projects that may affect the lands they customarily own, occupy or use
Fractions
Fractions
Fractionationis a process that separates a substance into smaller parts, also known as fractions. Palm oil can be fractionated into liquid palm olein and solid palm stearin at a ratio of 80:20
Fronds
Fronds
A large divided leaf of a fern, palm or similar plants.
Fruitlet
Fruitlet
Immature or small fruit
Futures
Futures
A futures trading is a form of investment carried out by speculating on the price of a commodity going up or down in the future
GAPKI
Indonesian Palm Oil Association
GAPKI is an organisation that carries out efforts to promote and improve the Indonesian palm oil industry.
GDP
Gross Domestic Product
GDP is the monetary value of a country’s overall output in terms of goods and services produced
GE
Glycidyl fatty acid esters (GE)
Glycidyl fatty acid esters (GEs) are processing induced contaminants primarily found in refined fats and oils, and foods containing fats and oils. 
GHGs
Greenhouse gas
A greenhouse has contributes to the greenhouse effects by absorbing and emitting heat in the atmosphere
GlobOil
GlobOil
The main Indian edible oil conference held every year in September
HCS
High Carbon Stock
HCS is used to refer to areas of land that store large volumes of carbon and should be protected from development to prevent the release of carbon into the atmosphere
HCV
High Conservation Value
HCV covers a broad range of conservation priorities including biological, ecological and cultural values
HCVA
High Conservation Value Areas
HCVA contains outstanding and critical importance due to their environmental, socio-economic, cultural, biodiversity and landscape value
Hectare
Hectare
A hectare ( ha) is a metric unit used for measuring land area.1 hectare = 10, 000m2
Hedging
Hedging
Hedging means to reduce risk. It is done by offsetting transactions that will eliminate one or more types of risk
IPM
Integrated Pest Management
IPM is an ecosystem based method of crop protection which includes techniques such as biological control and habitat manipulation
ISCC
The International Sustainability and Carbon Certification
ISCC is a scheme established in 2010 and is a system certifying the biomass and bioenergy industries with an aimt towards sustainable land use and reduction of greenhouse gas emissions
ISPO
Indonesian Sustainable Palm Oil
ISPO standard is developed by the Indonesian government to ensure that all Indonesian palm oil growers conform to higher agricultural standards.
Immature palm plantation
Immature palm plantation
Immature oil palms are young palms of not more than 5 years old after field planting.
Independent smallholders
Independent smallholders
Small holders which are not bound to a specific mill. The RSPO Guidance on Scheme Smallholders ( July 2009) are labelled by their freedom to choose how to use their lands, which crops to plant and how to manage them.
JAS
July, August, September
Term commonly used in trading for forward delivery months
JFM
January, February, March
Term commonly used in trading for forward delivery months
LH
Last Half ( of the month)
Last Half ( of the month)
Land Tenure
Land Tenure
Land Tenure is the name given to the legan regime in which land is owned by an individual
Landbank
Landbank
A company’s landbank refers to the total area under the company’s ownership or management. This includes all land for oil palm cultivation
Lauric acid
Lauric acid
Used for the manufacture of short chain fatty acids, fatty alcohols, methyl esters, fatty amines, amides, etc, for use in detergents, cosmetics and innumerable other products.
Legally protected areas
Legally protected areas
Areas that are legally designated for the protection and conservation of biodiversity
Liquidity
Liquidity
Liquidity is the ease with which a security can be traded on the market. It is usually defined by the turnover of the shares divided by the number of shares in the issue
MEMR
Ministry of Energy and Mineral Resources of Indonesia
Established in 1984 to administer and organise the energy sector in a way to achieve national objectives
MEOMA
Malaysia Edible Oil Manufacturer’s Association
Maintains relationships with government bodies and trade associations. It is affiliated with international tarde associations such as Federal of Oil, Seeds and Fats Associations LTD ( FOSFA) and ASEAN Vegetable Oils Club ( AVOC).
MPOA
Malaysian Palm Oil Association
Acts as an integrated entity of the Malaysian oil palm and other plantation industries
MPOB
Malaysian Palm Oil Board
MPOB is a government agency entrusted to serve the country’s oil palm industry. Its main role is to promote and develop national objectives, policies and priorities for the wellbeing of the Malaysian oil palm industry
MPOC
Malaysian Palm Oil Council
An organisaton that enhances he image of palm oil and uses technological and economic advantages to create greater awareness of palm oil
MSPO
Malaysian Sustainable Palm Oil
MSPO standard is a national certification created by the Malaysian government and developed with input for the stakeholders in the palm oil industry
Mature palm plantation
Mature palm plantation
Mature oil palms are palms more than 5 years old after field planting.
Mesocarp
Mesocarp
The middle layer of the pericarp of a fruit, between the endocarp and the exocarp.
NIOP
National Institute of Oilseeds Producers USA
An international trade association with a main objective of promoting the business welfare of firms and corporations engaged in the buying, selling , processing, storage, shipping and use of vegetable oils and raw materials.
OER
Oil Extraction Rate
Two methods can be used to extract palm oil. The dry and wet method. The dry method uses mechanical presses to squeeze the oil out using mechanical pressure. The wet method uses hot water to leach out the oil. The rate is measured in percentage
OND
October, November, December
Term commonly used in trading for forward delivery months
Oleochemicals
Oleochemicals
Oleochemicals are chemicals derived from plant or animal fats. Its primarily used to make soaps, detergents and biodiesels
PAO
Palm Acid Oil
PAO is a biofuel feedstock derived from Palm Oil Mill Effluent( POME). It is a by-product of the chemical refining of palm oil and consist of free fatty acids and neutral oils.
PFAD
Palm Fatty Acid Distillate
A by-product from palm kernel oil from refining crude palm oil. It is light brown solid and room temperature and melts to a brown liquid upon heating
PKO
Palm Kernel Oil
Palm Kernel Oil is an edible oil taken from the kernel of the oil palm. It should not be confused with the other two edible oils derived from palm fruits; palm oil and coconut oil.
POIG
Palm Oil Innovation Group
POIG is an initiative between environmental and civil society organisations and industry companies that aim to build upon RSPO principles and criterias
POME
Palm Oil Mill Effluent
POME is a highly acidic waste water discharged from the sterilisation and clarification processess in milling oil palm
PORAM
Palm Oil Refiners Association of Malaysia
Began operation in 2001. This company is involved in direct brokerage for the fullr ange of palm oil products and other Vegoil products and derivatives including by products.
RBD
Refined, bleached and deoderised
Refined, bleached and deodorised. These are the three stages of process to produce refined oil such as palm oil and palm kernel oil. RBD oil is made from copra, dried coconut kernel which is pressed in a heated hydraulic press to extract the oil.
RBD PK Olein
Refined, Bleached and Deodorized Palm Kernel Olein
Palm olein is the liquid fraction obtained from fractionation of palm oil. The fractionation process involves a physical process of cooling the oil under controlled conditions to low temperatures, followed by filtration of the crystals through membrane press. 
RBD PKO
Refined, Bleached, Deodourised Palm Kernel Oil
RBD PKO is a fully bleached, refined, deoderised vegetable oil derived from the liquid fraction of the palm kernel oil
RBD PKS
Refined, Bleached and Deodorized Palm Kernel Stearin
Palm stearin is a solid fraction and is derived from palm oil through the process of partial crystallization at controlled temperature
RBD Palm Olein
Refined, bleached and deoderised Palm Olein
A liquid fraction obtained by the fractionation of palm oil after crystallization at controlled temperatures. Commonly used as raw materials in the manufacture of soaps, washing powder and other hygiene and personal care products.
RBD Palm Stearin
Refined, bleached and deoderised Palm Stearin
A solid fraction obtained by the fractionation of palm oil after crystallization at controlled temperatures. Besides edible usage, it can be used for making soaps and formulating animal feeds.
RBDPKO
Refined, Bleached, Deodourised Palm Kernel Oil
To produce palm kernel oil, a three stage process of refining takes place; degumming, bleaching and deoderising
RSB
Roundtable on Sustainable Biomaterials
RSG was established in 2007. It is a global certification scheme to encourage the sustainable production of biofuels and other biomaterials
RSPO
Roundtable on Sustainable Palm Oil
An organisation established in 2004 which has established international standards for sustainable palm oil production
Rapeoil
Rapeseed oil
Also known as canola. The name was changed to canola by Canada some years ago. Canola means Canadian oil. Canada is the largest producer of rapeseed oil. Oils in supermarket are labeled canola
SOPPOA
Sarawak Oil Palm Plantation Owners’ Association
A newly formed association representing Sarawak Oil Palm Plantation Owners in Sarawak to promote working relationships between owners and relevant parties and address issues pertaining to Sarawak’s oil palm industry.
SPOM
The Sustainable Palm Oil Manifesto
Established in 2014, SPOM is an initiative of five palm oil producers to initiate the HCS ( High Carbon Stock) Study to define what constitues HCS according to its Steering Committee
SPPOMA
South Palm Oil Manufacturer Association
Johor- the largest producer is in the group with 17 refineries
Saturated Fat
Saturated Fat
It is a fat that contains saturated fatty acids which usually comes from butter or meat
Sunoil
Sunflower oil
An oil which is high in Vitamin E and low in saturated fat. There are two common types of sunoil known as linoleic and high oleic . Linoleic is a common cooking oil.
Threshing
Threshing
It is a process of looseing the edible part of cereal grain( or other crops) from the inedible chaff that surrounds it. It is a process done to prepare grains after harvesting
Traders
Traders
Traders buy and sell goods, shares, currency. In palm oil, there are two types of traders; physical palm oil traders and agricultural commodity trader
WWF
World Wide Fund for Nature
The World Wide Fund for Nature is an international non-governmental organization founded in 1961, working in the field of wilderness preservation, and the reduction of human impact on the environment.