Palm kernel is the inner seed of the palm fruit, carefully separated from the hard shell after the outer flesh has been processed for crude palm oil (CPO). Serving as a critical co-product of the palm oil milling process, the palm kernel is the sole source for two highly valuable derivatives: Palm Kernel Oil (PKO) and Palm Kernel Meal (PKM). The kernels are typically crushed and pressed to extract the oil, leaving behind the solid residue that is then processed into a meal. This two-part derivation process ensures that every valuable component of the kernel is utilized, contributing significantly to a sustainable and efficient supply chain.

Each of these derivatives serves a wide range of markets. Palm Kernel Oil (PKO), known for its high concentration of lauric acid and short-chain saturated fats, is a staple in the food industry, widely used in confectionery, ice cream, and bakery fats. Its unique properties also make it an essential ingredient in cosmetics, soaps, and detergents. The solid byproduct, Palm Kernel Meal (PKM), is a fibrous and protein-rich residue that is highly valued as a cost-effective and nutritious ingredient for animal feed. The complete utilization of the palm kernel, from its oil to its meal, underscores its importance as a versatile commodity in both the food and industrial sectors.