Type of foods high in trans fats

Why does your favorite potatoes and fried chicken from restaurant feels more delicous and crispy than you cook by yourself at home? The answer probably is trans fats. It contribute to foods texture, better taste and give you high energy, but it is not good for heart health. It can also raise cholesterol levels, exacerbating inflammation, reduce levels of good cholesterol that prevent heart disease and cancer risk. So what is type of foods high in trans fats ?

Instant cake mix
It is certainly easier to make cookies with instant cake mix. But it's better if you make the cake from begining to the finished cake to ensure you have served the healthy kind of foods for your family.
French fries
Who does not like french fries. Its delicious taste that will make anyone want to eat it more. However, unfortunately the fries contain trans fats which come from the frying.
Fried foods
Just like french fries, you never really know what oil is used to fry it. And it should be avoided if you are not sure of the materials used. Then, frying with used oil or using the same oil for frying repeatedly may be also bad for your health.
Frozen cakes and pies
Baked products that you buy from stores, especially those that can be stored for a long time, may contain this kind of material. Frozen cakes and pies are often a source of type of foods high in trans fats you should avoid.
Donuts
Without that ingredient, donuts will be very oily. In order to create softer texture, snacks such as cake, donuts, and cookies using it.
Pop corn
Popcorn sold in movie theaters may contain these ingredients. To keep the taste, the use of margarine may be substituted with butter.
Coffee creamer
Creams contained in many snacks and beverages, such as coffee, are trans fats.
Biscuits (crackers)
Most crackers use this product, which can be replaced with soy or canola oil to make it safe.
Foods and Drug Administration (FDA) announced that they will restrict or prohibit trans fats significantly from foods in the U.S. This agency decided that it was not safe for human health, and should not be in the foods we eat. In 1999, the FDA first proposed that manufacturers should disclose the content of trans fats on nutrition labels, but it did not become a requirement until 2006. Many of the companies have gotten removed it from their products, and New York City even ban trans fats from restaurant foods in 2006. But, according to the FDA, there are type of foods high in trans fats, such as donuts, biscuits crackers, popcorn, frozen pizza, coffee creamer, frozen dough products as well as canned products. It is a real challenge for the industry and scientists.

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Vegetable oils products, free of trans fats

Trans fats linked so far to cardiovascular disease, although on the other hand, contribute to food texture preferred by consumers. It can be formed, for example when some types of margarine (which is produced by the partial hydrogenation) are heated. Therefore, it needs to be reconsidered to develop products that are more friendly to health, and off course still maintain the sensory value. Actually increasing concern for health is a chance for the industry, particularly palm oil to produce vegetable oils products that are free of trans fats because it does not contain the types of fats.

Research conducted by Byung Hee Kim et al (2009) from the University of Georgia said that the interesterification mixture from vegetable oil of canola, palm stearin (PS), and palm kernel with a certain ratio produced margarine with the same quality as a commercial margarine. As for shortening, a mixture of PS and coconut oil (CnO) produced fats that can be used as an elastic shortening. Jeyarani et al. (2009) in a report published by the Journal of Food Chemistry stated that a mixture with a certain ratio of PS and CnO has a wider melting range, making it suitable to be used as a shortening.
Other alternatives of vegetable oils products that are free of trans fats is to develop Cocoa Butter Substitute (CBS). It can be produced from vegetable oils and fats by chemical means or fractionation and enzymatic processing. CBS manufacture technology from palm kernel oil (PKO) has been developed into a large industrial scale including fractionation and hydrogenation and its combination. But this technology in small-scale industries are not yet available. PO Research Center in Indonesia has resulted technology of full hydrogenation process for crude PKO and without producing trans fats under conditions of moderate temperature and high pressure. Magnification scale into 100 kg/batch needs to be done and the process conditions are optimized to support the use of PKO in small and medium scale industries. The process of hydrogenation use hydrogen to saturate the unsaturated fatty acids with the aid of a catalyst. Commonly used catalyst is the nickel. The fats products which contain no trans fats is important because of its low density increase lipoprotein (LDL) and lower high-density lipoprotein (HDL) thus becomes an important risk factor in coronary heart disease.

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Trans fats in snack

World snack industries are growing quite rapidly. Innovation and high market demand is the key why the product is still evolving. In fact, this excessive consumption is often regarded as the cause of several health problems. For example, obesity, trans fats in snacks, acrylamide, and so on.
The substantial processing of trans fats solidify liquid oils (usually vegetable oil) with hydrogen gas in a process known as hydrogenation (ie, by adding hydrogen to them). This processing is performed to improve the oxidative stability so that the product is not susceptible to oxidation processes. This process is used to make margarine. Most of them are artificially synthesized through a chemical process that adds hydrogen to vegetable oil. In short words, it means changing liquid oils into solid fats.
The benefits of this hydrogenation are the cheap product with a longer period of storage and extending its shelf life and adding flavor savory meal. Trans fats in snacks can make delicious stuff, and french fries in fast food restaurants favored by many people. With this fat biscuits may last more than 1 year . Another feature of these ingredients is to make the food tasty textured or easily melted in the mouth, crispy, and generate flavor and aroma of savory and delicious. Children generally love this kind of snack.
They are formed through a process of partial hydrogenation and its existence becomes a very important issue in recent years. This is because of the presence of trans fatty acids can lead to increased levels of LDL cholesterol in the blood and the risk of heart disease. So it is understood if the USFDA requires to include the presence of these fatty acids in the label. However, in recent years many food manufacturers have taken steps to limit or eliminate trans fats in snacks. Several fast food restaurants, since a decade ago claimed to have stopped cooking fries using it. Many company websites claim that all kinds of fried foods have trans fats free. Even New York City in 2007 adopted regulations that prohibit partially hydrogenated vegetable oil spread in the restaurant.
Since 2005, food manufacturers have claimed to lower their amount in snacks to more than 73 %. Trans fats intake among U.S. consumers declined from 4.6 grams per day in 2003 to about 1 gram per day in 2012, according to FDA. Other countries also trying to reduce them in snacks are Brazil, Costa Rica, Denmark, the Netherlands, South Korea and the United States and has been proven effective over the past two decades, according to the WHO.

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Fatty acid composition of soybean oil

Soybean is well known as the raw material for the production of traditional food in Indonesia, such as tempeh and tofu, while in the USA it is widely used to produce oil, because the fat content is quite high at 14-23%, and an average of 19%. Therefore, soybean oil has long been known as a frying medium which is commonly used in the United States and European countries. But in Asian countries, especially Southeast Asia, palm and coconut oil is more commonly used for frying because of the availability of its raw materials that is abundant in that region. The debate regarding the impact of the fatty acid content of the three types of frying medium on health is rising. Therefore, the fatty acid composition of soybean oil and the consequence should be understood first.
Oil content and composition in soybean are influenced by varieties, climate, and growing conditions. Crude fat content indicate the presence of triglycerides 90-95%, while the rest is phosphatides, free fatty acids, sterols, and tocopherols. Its oil content is relatively lower than other types of beans, but higher than the cereals. High protein levels lead to its common usage as protein source instead of oil sources in some countries.
Fatty acid composition of soybean oil is rich in essential fat (linoleat/omega-3 and linolenat/omega-6) that is needed by human body and is claimed to prevent atherosclerosis. In more detail, unsaturated fat content is about 85%, consisting of oleic (11-60%), linoleic (15-64%), linolenic (1-12), and arachidonat (1.5%), while its saturated fat is about 15%, consisting of palmitic (7-10%), stearic (2-5%), and others (0.2%). Nevertheless, it will be damaged during heating, for example when it is used for frying as linoleic and linolenic are more sensitive to heat than oleic. It also must go through the process of hydrogenation in order to increase the stability. This makes oil hydrogenation produces trans fat which is also bad for the heart. Several efforts have been done, such as natural pollination research by the team of researchers from the University of Missouri and rotation with corn by Nacer Bellaloui et.al. (2010) to increase the oleic in fatty acid composition of soybean oil, because it is more stable to heat so it does not require hydrogenation.
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Benefits of castor oil

Benefits of castor oil is to replace diesel oil as the generate electrical power. The tree can be cultivated in almost all regions of Indonesia. So, this help people to meet the energy needs of remote areas and this power can be produced by the communities that need electricity. Research about this new commodity has been conducted by Dr. Ir Robert Manurung MEng, lecturer in the Department of Industrial Chemistry Institute of Technology Bandung (ITB), accompanied by Eiichi Kobayashi Masanori Nagayama and from New Energy and Industrial Technology Development Organization (NEDO), under the Japanese Government agency that helps the research of new energy sources. Castor oil is obtained from Jatropha curcas L. which is a bush family of Euphorbiaceae. Within five months, this drought-resistant plants is starting to bear fruit, full productive at the age of five years old, and its productive life reach 50.
In fact, a coal mining company and a Japanese manufacturer of heavy equipment operating in Indonesia have developed new business opportunities in the form of the production of fuel from castor oil. The capacity is expected about 8,000 tons per year by 2012. This natural power resources is expected to live 100 units of mining dump trucks with a capacity of 90 tonnes used in coal mines in South Kalimantan. The biodiesel from jatropha would replace 20 percent of fossil fuel use which can not be recycled. To obtain the planned capacity of 8,000 tons per annum, this requires 4,000 hectares of cultivation land.
In addition, benefits of castor oil is to improve people's welfare, especially in areas with low natural resources. If each farmer were given the right to manage three acres of dry land, with a density of 2,500 trees per hectare and the productivity of 10 000 kilograms beans per hectare and the price of IDR 500 per kilogram of seed, of a family farmer can earn IDR1.25 million per month from the beans. Castor oil can be obtained by simple direct expelling or pressing so that an investment of IDR 3-4 million is sufficient to produce 40 liters of oil per day. Unlike other biodiesel, it does not need any additional ethanol or methanol. Its use could also be 100 percent, no more diesel fuel to be mixed, said Manurung.
In terms of health, jatropha vegetable oil also has anti-microbial properties of pathogenic bacteria, which in the form of soap, it is more active soap to get rid of the bacteria S. aureus and E. coli than any other vegetable oil-based soap. According Aprilian Salis, from PT Pertamina DOH Kalimantan, if properly managed, the benefits of castor oil could reach 30 to 40 percent of total fuel consumption in Indonesia.

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How to reduce fat

How to reduce fat is a common question for them whom tend to pay attention to their own appearance, especially women. It tends to lead to an unattractive appearance. But we can not eliminate then on just one particular part of our body, except with liposuction. Liposuction is done by a lot of people who want to lose fat, especially belly ones, quickly and instantaneously. This method is only recommended for certain patient. The doctors usually only recommend liposuction for patients with severe obesity and fat while exercising is hard to remove it completely. This usually occurs in certain hormonal conditions.
How to reduce fat in body using natural food is the next question. The use of fat buster in certain body parts with synthetic drugs- such as advertised one- and is not good and not useful. If you are more interested in using natural ingredients to help you get your ideal weight, you could put turmeric or chilli in your diet. Chilli helps you to slow down your appetite.
Fat in our can be burned with aerobic activities, such as jogging, walking, gymnastics, or swimming. You can perform these while listening to music, through the parks or place which is fun and special for you so you do not feel bored while doing it.
To keep the heart healthy, get enough exercise 3-5 times per week with a duration of 20-30 minutes. You should choose the type of exercise that you can do it with a regular rhythm such as jogging or walking regularly. Change from slow to fast movements suddenly as the movement which is often done in a game sports such as soccer or badminton should be avoided, especially for those who are not young anymore or have a heart disease record. Although you're eager to practice the tips on how to reduce fat but you must remember that excessive exercise makes us tired, disturbed sleep, easily hurt, and cause heart problems.
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How to store cooking oil properly

How to store cooking oil properly is as follows. It should be kept in a dark-colored packaging. It is intended to avoid rancidity, because of oxidation due to contact with air and is triggered by ultraviolet in the sunray. Recently, it is sold in the market in transparent or translucent-colored package. It aims to be easily visible. In addition, the consumer preference to its packaging is transparent. Yet this preference is not appropriate because it can be easily oxidized, so it becomes rancid. Store cooking oil properly in sealed containers and away from heat sources such as light, stove, and the sun! The bad habit to put it near a heat source will cause fortified vitamin A will be reduced even in very small amounts. Vitamin A contained will be damaged because vitamin A is one of micro substances which is sensitive to acid and oxidation when exposed to direct sunlight, and easily damaged by heat. So, the key to store cooking oil properly is keep it away from the factors inducing its deterioration, such as UV, heat, air, and even metals.

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Specialty fats products

The characteristics of specialty fats products are very different from the fat in general such as margarine, shortening, pastry fat, filling / cream fat, and the othes. In general, its application are divided into three groups: (i) the molded products such as chocolate bars and pralines, (ii) coated / enrobed products, ie, chocolate coatings / non-chocolate wafers, biscuits, nuts, fruits and other and (iii) filling or center in the confectionery product.
This characteristic is related to the crystal structure, in which brown fat has a structure of β (beta) with the crystal density arrangement and melting point is high, the speed of crystal growth is relatively slow, but has a very stable crystalline construction. On the other hand, other types generally have a form of β'(beta-prime) that has the opposite properties. The distinction of its structure is very difficult to distinguish from its melting point, and the parameters that can describe the typical characteristics of brown fat is solid fat content (SFC). SFC profile of specialty fats should be sharp and steep, where at temperatures less than 25 degree C they should have SFC more than 68% to ensure the hard and brittle texture, as well as at temperature of 35 degree C should have SFC less than 5% to ensure no waxy taste in the mouth when chocolate consumed.
They are sometimes called by confectionery fat, hard butter, or cocoa butter alternatives (CBA). In general, specialty fats are divided into 3 groups, namely: Cocoa Butter Equivalent (CBE), CB Replacer (CBR), CB Substitute (CBS).

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Bad fat in fast food

Even Greyson Chance rumored to be visiting Jakarta, Indonesia, likes fast food (FF). But did you ever think that fast food contains bad fat ? Dr. Ratna Djuwita from the Faculty of Public Health University of Indonesia said that in modern times, people still eat bad fat from unhealthy option like FF. She obtained this opinion from the results of her study on nutrients of four Indonesia ethnic: Minang Kabau, Sundanese, Javanese and Bugis. She added that their intake is sufficient in quantity, but the quality is not good.
That opinion was indirectly supported by researcher from Harvard University, Dr. Dariush Mozaffarian. But he also said that some of the leading restaurants managed to reduce the bad fat in fast food production in the United States, in order to reduce the risk of being overweight or obese to the consumer. He added that some of the restaurants succeeded in reducing the trans fat (TF) content and saturated fat (SF) content in their product to the safe limit established by the U.S. Food and Drug Administration or FDA to zero grams (TF) while the SF content up to 2 to 8 grams. However, there are still many restaurants not meet health requirements from the rules set by MOH of Uncle Sam. Although no direct chemical testing, Research Center for the Public Interest CSPI says the research is based on the nutrition label are listed in 85 major industrial products are submitted to the FDA.
There are several reasons why you should reduce the consumption of fast food.
1. It contains ingredients that give the delicious sensation (such as bad fat and sugar) so that you hooked and stimulate you to continue to eat as often as possible. This sometimes makes you eat them regularly every day. Avoid this by changing your eat habits with healthier stuff, like fruits and vegetables fresh.
2. If you like eating them and rarely exercise, then in a few weeks your body will experience weight gain which is not healthy. The bad fat in fast food are then stored and accumulate in your body.
3. Salt can make your menu much more enjoyable. Almost all FF contain high salt. Salt contains sodium. When the level of sodium in the blood is high and cannot be removed by the kidneys, blood volume increases because sodium tends to attract and retain water. This increase causes your heart to work harder to drain the blood throughout the body that causes high blood pressure.
Dr. Ratna suggest that from the consumption of total fat, SF should be no more than 10 percent, and 20 percent unsaturated consisting of 60-10 percent PUFA and 10 percent MUFA.

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Indonesia Palm Oil Industry Barriers

Secretary General of the Indonesian Palm Oil Association (Gapki), Joko Supriyono, explains that there are six barriers to palm oil industry in Indonesia that lead to expanding difficulties or competitiveness declining if they are not removed.
a. Unclear policies for the land that will be used for development of new plantation as the result of imperfections of national spatial issues and the Provincial Spatial Plan (RTRWP). In addition, there are legal uncertainty of the legal status of the land. These conditions make concessionaires and investors choose to wait and see which of course will affect the rate of plantations expansion.
b. The second barrier: a moratorium policy on primary forests and peatlands can actually complicate the resolution of land issues that have previously been faced with the RTRWP problem.
The president instruction concerning the moratorium is considered to collide with other regulations such as the Law Number 41 (1999) regarding Forestry. On this basis, the policy of a moratorium be counterproductive to the development of palm oil industry.
Although the government provides the degraded land area of 35.2 million ha but its status still in doubt because this areas includes forest areas.
c. The third of Indonesia palm oil industry barriers, high CPO export tax which is progressive is proven not effective to suppress the volume of exports of CPO and have not been able to encourage the development of downstream industry in this country.
Instead, the tax is believed to be unfair to producers of raw materials either state or private estates and smallholders because they do not enjoy increased margins that should be obtained from the high price of CPO in the world today. So it is not appropriate if the tax is planned as the main instrument as the downstream industry actually need more appropriate incentives and attractive.
d. Fourth barrier, the development of palm plantations that led to Eastern Indonesia is less supported by adequate infrastructure such as ports. Supposedly there is an export port in Kalimantan to facilitate CPO sales abroad. In consideration, the total production of crude palm oil (CPO) from Kalimantan and Sulawesi has reached 30 percent of national production. It is also expected soon realized the development of industrial clusters to encourage the growth of the downstream industry.
e. Fifth barrier, the CPO business was harmed by the application of tax rules regarding VAT on primary products of fresh palm bunch (TBS/ Tandan Buah Segar). Because the VAT of TBS is waived so that TBS for input tax on production factors goods couldn’t be credited and become an additional burden. As a result, it leads to double taxation to the integrated companies (production-processing).
f. Sixth, the government should make climate change mitigation program with its own forces without involving foreign aid to overcome Indonesia palm oil industry barrier. The involvement of foreign funds will only make this country more dependent on other countries, while foreign aid is not necessarily give a direct impact on employment and poverty reduction.

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Palm oil prospect

Palm oil prospect can be evaluated from its strength and opportunity. The expansion of its agribusiness is one of the steps required as plantation sub-sector development activities in order to revitalize the agricultural sector. The growth of various subsystems that is very rapidly in this agribusiness since the late 1970s is the evidence for the rapid movement of this industry. World's palm oil demand has increased in the last two decades, first for use in food, consumer products, and more recently as the biofuel raw materials. Malaysia and Indonesia account for approximately 87 percent of world production.

This commodity with its various uses for both food and non food industries, show the development which is not only associated with the growth of vegetable oil in Indonesia and the world, but also related to the growth of other sources, such as soy, rape seed and sunflower. In terms of competitiveness, palm oil (PO) has a good competitiveness compared to others, because: (1) its productivity per hectare is quite high, (2) it is an annual plant which well adapt to various agro-climate change, and being reviewed from its nutritional aspects, it has not been proven to cause increased cholesterol levels, and even contain beta carotene as a source of pro-vitamin A.
CPO (Crude Palm Oil) is a major commodity of plantation sector in Indonesia which is the second largest producer after Malaysia. Various advances have been gained in development of its plantations and a variety of benefits has to be realized as a result of this agribusiness actors efforts. Support from various parties such as banking, research and other economic infrastructure support by the various agencies involved in this sector is very important role. Its tree which is an annual plant may play a role in the absorption greenhouse gases or other environmental services such as biodiversity conservation or eco-tourism.
Palm oil prospect in Indonesia gave a very positive impact in national establishment, since PO is one source of foreign exchange from non-oil sector which is quite important. World vegetable oil consumption always exceeds its production so that the tendency of the world vegetable oil prices will always go up. From World Oil: production and consumption of edible oils during the period 2008-2012 is estimated to 132 million tonnes, while production is only 108 million tons so it needs a new supply of 24 million tons.
Palm oil has better prospects than others in the future due to several factors, among others:
1. Palm oil productivity is quite high compared to others.
2. For annual crops, PO is easier to adapt to its environment compared to others such as soybeans and sunflowers.
3. Judging from the healthcare, PO has the advantages when compared with others because they contain beta-carotene as pro-vitamin A and vitamin E
4. PO can also be used as raw materials for oleochemical industry which has the advantages compared to products made from petroleum. Palm oil is a source of raw materials that can be renewed (renewable), while petroleum is expected to be depleted within the next few years.
5. Oleochemical products are made from PO is safer, because its edible nature of and it is friendly to the environment and is easily broken down.
The increasing demand for vegetable oils is in line with population growth and economic growth. Therefore, plants with higher productivity of oil will meet the expectations of market demand in the future. PO productivity is up to 4 tons / ha / year exceeds the productivity of soybeans which is only 0.4 tons / ha / year and 0.57 tons of rapeseed oil / ha / year. In addition, Konferensi Minyak Sawit Indonesia VII (7th Indonesian Palm Oil Conference) held in Bali by GAPKI can provide a clearer picture about palm oil prospect.

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Palm Oil Industry Development Strategy

Palm oil industry development strategy in Indonesia need to be formulated carefully, considering that it is a country with the largest world supplier of CPO. Their production in 2009 reached 18.6 million tons. Business prospects this commodity in this country would be good if all aspects were well managed by the government and must be fully supported by the palm oil (PO) industry. There are seven obstacles to the development of Indonesia's PO industry. Of the seven barriers can be concluded into four main things that should be considered by all parties.
Infrastructure development strategy
One of them is the absence of an international port as a main distribution point for palm oil from Indonesia. Then the suggestion offered is to start building an international port in the strategic areas of PO business (clusters) such as in Kalimantan (Borneo), Riau, and We Island at the northern part of Sumatra. The ports can be placed in the Straits of Malacca to be related to the European market, while to seize the Asia market, it can be built in the Natuna Sea or Borneo.
Environment Strategy
The existence of a moratorium on natural and peat lands are directly delivered by the president as a result of an agreement on inter-country meeting in Oslo, was worrying because it is probably narrow the possible field for the plantation. But after further review, the moratorium is for the common good. Business actors also recognize the support of a moratorium, but the government is expected to be fair in all the sectors of interest, and wise.
Development strategy of palm oil downstream industry
There is a desire of the investor to hasten the formation of a specialized agency that houses the business. High commitment is needed from government embodied in the form of, among others, a clear blueprint on the development of PO industry, policies that helps the development of the industry from upstream to downstream, and development activities are coordinated and integrated among relevant agencies, as well as the creation of more conducive investment climate to create more interest in the PO industry. Promotion institution is required specifically to promote the Indonesian palm oil products to the export destination countries to improve market access for that products in the international market.
Regulatory Improvement Strategy
These include the taxation system. Ideally the government establishes a warm climate to make a breakthrough policy. The fact, the government set higher taxes for the PO business, so the investors preferred to directly build a cooking oil factory in export destination countries. It is suggested that this tax can be minimized and better optimized if the tax paid to be returned again on the path of palm oil business, among others, to build the infrastructure, and returned in the form of incentive for farmers, so it will push the productivity up.
In addition to the four things that should be observed above, there is one additional strategy which is said by the Indonesia minister of agriculture, Mr.Suswono, that the key to overcoming the problem of low productivity per hectare, is research. Research needs to be held and allocated sufficient funds to do research because it is proven in the country of Malaysia which have less land for plantation, but their palm fruit can be produced twice as much as Indonesia in one hectare. Malaysia which is one of world's PO producer, has the Malaysian Palm Oil Board, which is a fusion of the two institutions: research and licensing institutions.
In addition, the 7th Indonesian Palm Oil Conference held by GAPKI expected to provide deal solutions for various issues and development strategies for palm oil industry.

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Threats to palm oil business

Threats to palm oil business came through the anti-palm oil campaign that continues to this day. Even the pressure given to that industry may be growing stronger in the future. The campaign theme is still associated with the issue of climate change and environmental degradation. The series of such campaigns will be more systematic, which not only carried out by NGOs alone but by certain consumer groups and some countries in the European Union, through the threat of new standards enforcement in the palm oil trade and apply the rules in the form of non-tariff barrier.
According to the results of the ICBS (2000) that the American Soybean Association (ASA) conducted a policy of unfair trade (not fair) with a campaign that the CCO (crude coconut oil) and CPO contain saturated fatty acids and high cholesterol which are not good for health. This course will build a negative brand image as well as threats to business, especially palm oil from Indonesia. It because soybean oil produced by American countries is more expensive than PO and is unable to compete with PO. Soybean oil export share even have started to be taken over by the CPO. Its production costs only U.S. $ 180/ton, while soybean oil U.S. $ 315/ton and rapeseed oil U.S. $ 750/ton. Seeing this condition, ASA led by the USA started campaign negative issues against the CPO in the hope customers will come back to consume soybean oil.
Therefore, to counteract these issues, the Indonesian government is seemed to approach through trade lobbying. Fight against such threats through scientific way such as research to find objective data in supporting the CPO trade and then the results are published on an international scale.
By considering the increase in world vegetable oil demand and the expansion of all the world vegetable oil production, palm oil business should not stop the expansion if they do not want to lose market opportunities and lose momentum of building a national economy.
Therefore, the government should create a good climate to making a breakthrough policy as an effort to overcome the threats facing the business of palm oil.

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Indonesia palm oil prospect

In order to study Indonesia palm oil prospect, it is needs to estimate the market opportunities (increased consumption) in the world market. Based on the previous estimation, the consumption level until 2025 is expected to range between 41.45 - 44.45 million tons. On the other hand, world CPO production in 2004 was 25.67 million tons. Thus, the chance to increase production until 2025 is ranged from 15.78 - 18.78 million tons.
With a fairly open market opportunity both in terms of world exports or consumption, CPO producing countries will try to exploit these market prospect. Malaysia and Indonesia is to lead this competition. As expected, Malaysia as the main producer is expected to take these opportunities with increased production at a rate of 2.8% -1.5% per year. Indonesia is predicted to increase production at a rate between 3.0% -7.6% per year.
There are several arguments told that with the support of consistent and effective policy, associated with the Indonesia palm oil prospect, this country is expected to capitalize on most of these market opportunities. The main factor is the availability of land that is still quite large. The availability of land suitable for palm plantation in Indonesia reaches about 2.9 million ha. On the other hand, Malaysia faced difficulties because of the very limited land for expansion. Other countries such as Thailand, etc. are also not predicted as the real competitor because of their limited land, and its policy which not putting palm oil as a commodity. Nigeria palm oil output is estimated to be only sufficient to meet their domestic needs.
With this argument, Malaysia is predicted to take the opportunities by 20% (3.16 - 3.76 million tons) and approximately 40% (6.31 to 7.51 million) will be utilized by other states. Indonesia is estimated to take the greatest prospect to utilize about 40% or about 6.31 to 7.51 million. This means that with the assumption that productivity is about 3.5 tons of CPO / ha, they have a chance to expand between 1.80 - 2.15 million ha. If the expansion carried out between the years 2005-2025, then every year they should expand about 120 -140 thousand hectares to support their palm oil prospect.

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Palm oil downstream industry development

Agriculture expert from Bogor Agricultural University (IPB), Prof Erliza Hambali told through the development of the palm oil downstream industry, it could be one of Indonesia's biggest foreign exchange producer. According to Prof. Erliza Hambali, the industry can be relied upon as a driver of national economy and are able to produce large amounts of foreign exchange. Referring to the data issued by the chamber, protection of national income in 2010 of crude palm oil (CPO) reached U.S. $ 14 billion.
Prof. Erliza argues, the income from CPO at U.S. $ 14 billion can be increased through the development of palm oil downstream industry (IHKS). With such development, value-added product in Indonesia can be utilized as much as possible both to improve people's welfare state and foreign exchange.
He said that, until now Indonesia is the country's largest CPO producer in the world. This reputation has been borne by Indonesia since 2006. According to him, the advantages of Indonesia at the sub-sector needs to be kept on hold and was developed to improve the welfare of the community.
He believed the development of the palm oil downstream industry may be the important key in the national economy forward, foreign exchange, job creation, increase added value for CPO and improve national food security and energy.

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Tax change effect on palm oil business
World palm oil production
Palm oil products
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World's palm oil producers

Indonesia is now the world's largest palm oil producer beat Malaysia, Bangkok, Thailand, and several other agricultural countries. In the last 5 years, the development of palm plantations in that country reached 5 million hectares of the reserve potential of 19.7 million hectares, or much broader than with Malaysia remaining 4.6 million hectares. Previously, Malaysia known as the largest producer but now their land had limited and was replaced by Indonesia. A rapid development of palm oil industries in this country,is supported by land and climatic conditions which is suitable for plant growth.
Meanwhile, the development of downstream businesses is continued to be developed. CPO is generally processed into refined oil, in the form of cooking oil (olein) and other products such as cocoa butter substitute (CBS), industrial margarine, and so on. The development of its chemical industry is also very heavily developed. The oleochemical industry today has been developed by some of the world's palm oil producer. In fact, in addition to an existed plant in Tanjung Morawa, today, one of the companies has nearly completed the world's largest oleochemical industry, which is located in Kuala Tanjung, North Sumatra. Construction of the plant has attracted one of the largest consumer goods manufacturers in the world, to order their products over the next 15 years.
Indonesian Palm Oil Association (Gapki) said Indonesia's CPO production in 2005 reached 15.2 million tons. From that volume, $ 4 million tons is consumed for domestic purposes and the remainder, 11.2 million tons, for export. This quantity can be compared with the export data from the Indonesia Bank data that said during 2005, it reached U.S. $ 4,707 million. If the price per tonne of CPO reached U.S. $ 400, then the number is very similar to the export volume issued by Gapki, which is about 11.2 million tons.
Then by the production volume of 15.2 million tons, whether this country has become the biggest producer or not? For that purpose, you may look for the production data from Bank Negara Malaysia, or the Malaysian Central Bank, which is seen producing highly reliable data. The result is the production from Malaysia in 2005 only 14 million tons. This means that Indonesia was already the world's largest palm oil producer. These facts speak for themselves eventually.

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Tax change effect on palm oil business

Indonesia change its policy of export tax provision of palm oil derived products obtain business reaction from buyer country such as India. The Hindustan country is planning to raise import tariffs of those commodities that will go into their country.
Anticipating the release of the policy, the traders in the country of Hindustan is buying more palm oil derivative products such as RBD olein from Indonesia. A total of 50,000 tons of that olein has been bought by the importer from India. The sources from Indonesia traders and India said the purchase was also a part to anticipate the demand for festivals or holidays in India. The edible oil processing industry in India is driving the government to raise import tariffs of those commodities from 7.7% to 16.5%. This is to protect the their industry interests which is now experiencing idle.
Secretary General of Indonesian Palm Oil Association (Gapki) Joko Supriyono said not know about that action from India. But clearly the current government of India will raise the its import tariff. He explained the presence of Minister of Finance Regulation No. 128/PMK.011/2011 on Regulation Amendment of the Minister of Finance Number 67/PMK.011/2010, it change the set of export tax on palm oil business is more expensive 0.5% to 4.5% from the previous.
"With India raise Indonesia CPO import tariffs became increasingly uncompetitive as it is subjected to the tax both in the producer country and also the destination country," he said.
Joko said India and Indonesia have the same interest-related to the CPO trade between the two countries. But with the government policy to change the rules so Indonesia palm oil products is more uncompetitive.
"Yes, it is strange (situation), if the state imposed a policy of import tariffs, then it is normal, but Indonesia also imposed a policy of export tariff," he said.
In addition to the change in export tax in accordance with the Minister of Finance Regulation No. PMK 128/PMK.011/2011, the Indonesia government has also added a total of 14 palm oil derived commodities(downstream products) are subject to tax exports. Previously those items, include crude palm oil (CPO), which is subjected to exports tax only amounted to 15. Thus there are 29 oil derivative products are subject to tax exports.
It is set in the Minister of Trade Regulation (Permendag) No. 26/M-DAG/PER/9/2011 which is officially assigned at September 14th 2011. HPE as many as 14 palm oil derivative products are subjected to export tax that starting from September 14th 2011 until September 30th , 2011.

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World palm oil production

World palm oil production during the last two decades has increased about 7.3% per year. This situation is highly influenced by Malaysia and Indonesia which contributed 80% of the global market.
In the next five years, crude palm oil or CPO production is expected will increase but smaller than the world consumption. Malaysia still dominated about 50% of the world market, while Indonesia is at the second level with 30%. Currently, those countries are the leading CPO producers with controls more than 80% market share.
World palm oil production is also contributed by other countries such as Nigeria, Colombia, Thailand, Papua New Guinea, and even the Ivory Coast, which are arguably only the complements. Malaysia ranked top with the volume in 2003 reached 13.35 million tons, while Indonesia is still 9.75 million tons. In 2004, Indonesia CPO reached 11.5 million tons. That's why a lot of optimism among analysts said that they would soon beat Malaysia, especially if you see the land area in Malaysia is more limited, while in Indonesia is still so widespread.
Palm oil (PO) in Indonesia is mostly absorbed by the food industry, especially cooking oil (CoO) and non-food industry such as cosmetics and pharmaceutical industry. However, the greatest market potential is the frying oil. That potential is evident from the increase of population has implications for the increasing of food needs. Until 1997, their cooking oil production just reached 3.1 million tons of with PO contribution of 2.3 million tonnes of CoO (74%) which require 3.3 million tonnes of PO.
World palm oil production will continue to increase in the future, considering that it has the highest oil productivity per hectare plantation, even when compared with corn, canola, or soybean oil.

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Palm oil products

Palm oil products are growing significantly, both in terms of needs and types. In connection with the increasing needs of domestic consumption Indonesia, the Indonesian government has tried to increase its production through the development programs of the private and the public, in addition to continue to promote the growth of downstream industries.
There are some cooking oil feedstock produced in Indonesia, among others, derived from coconut oil (CO), crude palm oil (CPO) and from Palm Kernel Oil (PKO)
CPO is obtained from its fruit fibers which is processed until soft and then squeezed. The results of this extraction can be used as base material for frying oil, margarine, etc.
In that processing, palm nuts are not broken and will be processed further to produce PKO. Because the oil produced from the kernel is very little compared to the CPO, the nuts are directly exported without further processing stages.
The oil can be traded in different forms, depending on the stage of its processing technology. Related to the edible oil industry, there are six types of its products are traded, namely palm oil (PO), pre-treated PO (PTPO), refine bleach & deodorize PO (RBDPO), refine bleach deodorize palm kernel oil (RBDPKO), pre-treated olein (PTO) or known as olein and refined crude olein.
CPO is the raw material for fatty acid, refine stearine (RS), and refine olein. The main market of refine stearine and fatty acid is the soap factory, margarine manufacturing, and chemical industry. RO can be mixed along with certain additives to obtained margarine, shortening, and bar soap.
Palm oil products in downstream level include intermediate products. They are the oleofood such as frying oil, margarine, and shortening. Cooking oil production increased 13-20% per year during 1991 to 1995 to reach 1,502,027 tons in the last year.
Increased CPO-based frying oil production beat down the Crude Coconut Oil / CCO and copra as a cooking oil raw material. PO productivity per hectare of plantation area is generally higher than coconut oil production.
Development of frying oil in Indonesia is shown by the increased demand for CPO. Every year it tends to increase with increasing downstream industries, such as frying oil and oleochemicals. Indonesia's domestic CPO consumption needs in 1995 about 3.3 million tonnes.
Currently, PO is the most dominant alternative copra substitution compared with maize and beans. This is because cooking oil price from PO is cheaper than from copra or CO.
In Indonesia, consumed cooking oil is divided into groups as follows: 1) CO from middle or small-scale industrial, 2) refine coconut oil, this type is obtained by refining the fist type mentioned before. 3) klentik oil (javanese name), this type is made by small entrepreneurs with fresh coconut as raw materials, and has good smell but is not durable. 4) others such as corn, peanut oil, and so on. 5) from PO. 5) margarine from vegetable oils.
Palm oil products can be expanded in future to produce a commodity in the new field, including health and energy, such as health supplement rich with vitamins A and biofuels.

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Unsaturated fatty acid

Unsaturated fatty acid (UFA), such as monounsaturated fatty acid (MUFA) and polyunsaturated fatty acid (PUFA), can have positive health benefits when consumed in sufficient quantities. Actually there so many fat types and certain types have benefits for heart health?
Classification of fats and oils can be viewed from several aspects, one of which is its saturation aspect. They can be distinguished based on its double bonds. Saturated (SFA) if it doesn’t has any double bond and unsaturated if it has one, two or three double bonds.
Examples of unsaturated fat
There are so many kind of agricultural product which contain high UFA, such as sunflower, canola, olive, soybean, peanut, flax seed, and fish oil.
The examples mentioned above, more specifically also contain high essential fatty acids - linoleic acid (Omega 6), alpha linoleic acid (Omega 3) and arachidonic acid. The scientists found that they proved to have several important benefits such as helping the body burn the fat, lower bad cholesterol (LDL), helps in the lubrication of joints, prevent strokes, maintaining blood pressure, and optimize brain health.
Unsaturated fat benefits
Is good fat really exist? We always have long been told to limit the amount of fat in our diet in order to keep our cholesterol levels. The fact is, we need a certain amount of them in our diets. It helps us absorb essential vitamins like A, D, E, and K
A study by Grundy from the Faculty of Medicine, California, USA, proves that the body's cholesterol levels may go down if the diet contains more MUFA and PUFA than SFA. Dietary SFA for a month proved to raise cholesterol levels. While the dietary MUFA, dropped it sharply, including LDL and HDL. In dietary PUFA, LDL and total cholesterol decreased, while HDL relatively unchanged.
PUFA are known to increase the intelligence and the immune system of children under five. Long chain unsaturated fatty acid (especially the omega - 3 DHA) have been shown to play an important role in the prevention and treatment of blocked arteries (atherosclerosis), thrombosis, hypertriglyceridemia, and high blood pressure. It has the potential for prevention and treatment of asthma, arthritis, migraine, and some types of cancer which is prostate, breast and colon cancer.
Unsaturated fat types
Most of UFA are fatty acids containing one double bond in their hydrocarbon chain. Fatty acids with more than one double bond are unusual, mainly found in vegetable oil, and called by PUFA. Polyunsaturated triglycerides tend to form oil.
PUFA can lower total blood cholesterol, especially LDL. If you want to consume this, you can be choose fish, seafood, safflower oil (Carthamus tinctorius), and sun flower oil. MUFA can reduce the presence of bad fats in the blood, such as cholesterol. By consuming them, HDL rises and LDL cholesterol goes down. So, it is good to be eaten for health. It is contained in olive oil, canola oil peanut oils, meat, fish, poultry, and avocado.
Unsaturated fat health risk
Although it is considered as a good fat, excessive consumption of UFA remain dangerous. If the total fat intake is more than 30 percent of food consumed, fat deposits in the body will increase. It increases the risk factor of increased blood fat that can cause heart and blood vessel disease. UFA forms the cell wall of the body. Consumption of high UFA should be followed by adequate intake of antioxidants such as vitamin E.
SFA, UFA, and trans would enhance the body's calorie. The public still considers only SFA which is bad for health, which are widely found in meat and its derivative products and fried foods. Each 1 gram of fat contains 9 calories, whereas 1 gram of starchy produces only 4 calories.
In addition to long chain SFA, trans fats is also bad for health. These are produced through industrial processes, such as margarine and cooking oil. In food packaging, it is called as hydrogenated fat. They do not only increase LDL, but also lowers the amount of good cholesterol. Unlike the SFA that only increase LDL.
The role of unsaturated fatty acid need to be studied further to ensure the influence of food and agricultural products that contain these components on human health.

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