Palm Kernel Crusher Plant Operation and Economic Feasibility
Andrew Yap Kian Chung* and Rohaya Mohamed Halim*Palm kernels are produced in a palm oil mill but will usually be sent to a palm kernel crusher plant with a maximum of 6% dirt and 7% moisture content. Mechanical screw press extraction is most common in used to produce crude palm kernel oil (CPKO) complying with Malayan Edible Oil Manufacturers’ Association (MEOMA) specifications. The average palm kernel oil extraction rate is about 45.63% and the crusher plant’s energy expenditure decreases as mill capacity increases. Although oil production cost varies due to production conditions, palm kernel oil production cost is the lowest among the major oil crops. The profit margin of palm kernel mill increases with plant capacity.
Tags: Gross margin, net present value, payback period, return on investment
Author information:
*Malaysian Palm Oil Board (MPOB), 6 Persiaran Institusi, Bandar Baru Bangi, 43000 Kajang, Selangor, Malaysia.
E-mail: andrew@mpob.gov.my