World palm oil output has been consistently rising over the past few decades, reaching record levels on an annual basis (Shean, 2014). Palm oil accounts for one-third of vegetable oil production in 2009 (Vijay et al, 2016). This could be due to the large yield of the oil palm crop which is over four times that of other oil crops. Also, palm oil is relatively cheaper and is a versatile ingredient in many processed goods. In Southeast Asia, 45% of sampled oil palm plantations came from areas that were forests in 1989 (Vijay et al, 2016). Driven by demand for these products, palm oil production nearly doubled between 2003 and 2013 and is projected to continue increasing (Vijay et al, 2016).
Palm Oil Production in Malaysia and Indonesia
Palm Oil Yield in Malaysia and Indonesia
Malaysia and Indonesia contribute roughly 86 percent of total global palm oil production. Both countries have ideal climates for the cultivation of this commodity, and have a long history of fostering export industries and plantation crops such as palm oil (Shean, 2014).
In Indonesia, about 38 million acres of tropical forest were cut down from 2000 to 2012 to make way for palm-oil plantations. Global demand for palm oil was also a driver for deforestation in Malaysia, where 12 million acres of forest was lost during the period.
Similar to the over logging of trees for timber, over extraction of palm oil can also be explained using the tragedy of commons!