• Does palm oil mill increase the production of edible oil and biomass energy?
  • Consequently, the palm oil mill increases the production of edible oil and biomass energy. High production of fresh fruit bunches can lower the prices of edible oil and biomass energy (Proposition 2 (c) and 2 (f)).
  • Is palm oil mill profitable?
  • The palm oil mill is also induced to cooperate with farmers. With an appropriate agreement on the profit portion \ (\left (\lambda \right)\), the palm oil mill can be profitable with higher production of fresh fruit bunches, edible oils, and biomass energies.
  • Why do palm oil mills have higher biomass conversion costs?
  • The palm oil mill¡¯s faces increasing biomass conversion costs, while the palm oil farmer accepts a lower wholesale price due to the larger sales margin. Not only does lower biomass energy demand pose a challenge, but higher biomass conversion costs also do not provide a feasible solution for biomass conversion efforts.
  • Are palm oil mills a heterogeneous market?
  • When firms have the ability to produce multiple products, they are confronted with a heterogeneous market (Gatti et al., 2000) as palm oil mills are required to fulfill demands for both edible oil (e.g., crude palm and palm kernel oil) (Arita et al., 2023) and energy.
  • Should palm oil mills and farmers consider fair benefit allocation?
  • They also have to consider fair benefit allocation to palm oil farmers. This study aims to build a game-theoretical model for palm oil mills and farmers considering biomass energy conversion and investigate the effect of market and cost structure changes on the solutions.
  • Does palm oil milling improve OER?
  • Based on the world production of palm oil in 2018, approximately 3 million tonnes of additional palm oil can be produced globally with a 1% increase in OER. In this paper, the current status of the palm oil milling process and the factors affecting the OER are discussed. Subsequently, the methods to improve the OER are reviewed.