The oil palm is one of the world’s most economical oil crops. A tonne of its fresh fruit bunches (FFB) yields 200 kg crude palm oil and 40 kg palm kernels which, in turn, yield about 50% of their weight, or 20 kg, of palm kernel oil. A hectare of estate can yield 20-24 t of FFB per year, which in turn will yield 4 to 5 t of palm oil and 400-500 kg of palm kernel oil. Palm oil is one of the 17 major oils and fats that are produced and traded in the world. Production in 2005 was 33.49 million tonnes which contributed to 24% of the total production of oils and fats. Production of palm kernel oil (PKO) in 2005 totalled 3.92 million tonnes and accounted for about 2.8% of the production of oils and fats. In 2006, palm oil trade is forecast at 27.61 million tonnes while that of PKO, 2.09 million tonnes. The total trade of oils and fats forecast for 2006 is 52.28 million tones compared to 50.35 million tonnes in 2005.