Palm oil fractionation separates crude palm oil into liquid olein (iodine value 56–65) and solid stearin (iodine value 32–42) by controlled crystallisation and filtration. For food manufacturers, the fraction determines functionality: olein for frying and liquid applications, stearin for margarine, shortening, and confectionery coatings. Mid-fractions (palm mid-fraction, PMF) serve specialised applications like cocoa butter equivalents.
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European retailers and food manufacturers increasingly require RSPO-certified palm oil in their supply chains. Thus, understanding the four RSPO supply chain models is essential for procurement:
Beyond RSPO, some manufacturers are adopting the NDPE (No Deforestation, No Peat, No Exploitation) framework or sourcing from the Palm Oil Innovation Group (POIG) for enhanced sustainability credentials. EU Deforestation Regulation (EUDR) requirements, which mandate due diligence on deforestation-free supply chains, add another compliance layer for palm oil entering the EU market.
The practical reality of RSPO certification levels is more nuanced than the official descriptions suggest. In my experience, most European food manufacturers purchasing palm oil for their own branded products have settled on Segregated (SG) as the minimum standard, because major retailers (particularly in Germany, the Netherlands, and the UK) no longer accept Mass Balance for own-brand products. Identity Preserved (IP) remains uncommon outside of premium and organic lines, mainly because the supply chain complexity and costs are hard to justify when SG already provides genuine physical traceability.
The EU Deforestation Regulation (EUDR) adds another layer. By december 2026, importers must demonstrate that palm oil was produced on land not deforested after December 2020, with geolocation data for the plantation. This goes beyond what RSPO certification alone provides. Procurement teams should be asking their palm oil suppliers now whether they can provide EUDR-compliant due diligence documentation, this is not something that can be assembled retroactively.
Fractionation is a physical separation process, no chemicals are involved. Refined, bleached, and deodorised (RBD) palm oil is cooled in a controlled manner to form crystals of the higher-melting triglycerides (primarily tripalmitin). The crystal slurry is then filtered under pressure, separating the liquid fraction (olein) from the solid fraction (stearin).
The process can be repeated to produce double-fractionated olein (super olein, IV ≥65) that remains clear at lower temperatures, or to isolate palm mid-fraction (PMF) for specialised applications. Each fractionation step increases cost and reduces yield, which is reflected in the pricing hierarchy.
Fractionation is carried out at origin (Malaysia and Indonesia produce over 85% of global palm oil) or at refinery facilities in importing countries. European refineries in Rotterdam, Hamburg, and Antwerp process significant volumes of crude palm oil into fractions for the European food industry.
Dry fractionation is by far the most common industrial method, accounting for the vast majority of palm oil fractionation globally. It involves no solvents or chemicals, just controlled cooling and filtration, which is why it is the only method permitted for organic palm oil processing. Solvent fractionation, using acetone or hexane, achieves sharper separation and is used primarily for speciality fractions like cocoa butter equivalents, but the solvent residue limits and additional processing costs make it a niche rather than a default approach.
| Fraction | Iodine Value (IV) | Melting Point | Primary Applications | Price vs Crude |
| Palm olein | 56–65 | 18–24°C | Frying oil, cooking oil, food service | Baseline |
| Super olein | >64 | 12–16°C | Cold-climate frying, salad dressings, liquid blends | 5–10% added |
| Palm stearin | 32–42 | 44–56°C | Margarine, shortening, bakery fats, PHO replacement | Discount to olein |
| Palm mid-fraction (PMF) | 45–55 | 30–38°C | Cocoa butter equivalents (CBEs), confectionery coatings | Significantly higher |
| Palm kernel oil (PKO) | 14–23 | 25–30°C | Confectionery fillings, non-dairy creamers, ice cream coatings | Separate market |
Palm olein is the world’s most traded vegetable oil by volume. Its natural zero trans-fat content and high oxidative stability make it the preferred frying oil for food service and industrial food manufacturing. Single-fractionated olein can cloud below 10°C; super olein remains clear down to approximately 5°C, which matters for bottled oil applications.
Palm stearin is valued as a hard fat component that replaces partially hydrogenated oils (PHOs) in margarine, shortening, and bakery fats. Since the EU and other markets have restricted or banned PHOs due to trans fat concerns, demand for palm stearin as an alternative has grown significantly.
Palm mid-fraction (PMF) has a triglyceride profile similar to cocoa butter, making it the primary ingredient in cocoa butter equivalents (CBEs). EU Directive 2000/36/EC permits up to 5% non-cocoa vegetable fats in chocolate, creating a significant market for PMF in European confectionery.
Super olein, produced by fractionating olein a second time to yield an iodine value above 64, has a specific and growing market in European food manufacturing. Its lower cloud point means it stays liquid at lower temperatures than standard olein, making it suitable for salad dressings, mayonnaise, and other emulsified products that must remain visually clear under refrigeration. The additional cost over standard olein is modest (5–10%) and supply has become more reliable as Southeast Asian refineries invest in multi-stage fractionation capacity.
One parameter that buyers sometimes overlook is the DOBI (Deterioration of Bleachability Index). A low DOBI value on refined product suggests the crude oil was already oxidised or degraded before refining, the refining process can remove some indicators of poor quality, but it cannot fully restore an oil that started in poor condition. If your supplier’s DOBI values are consistently mixed, consider it a warning sign about their upstream crude palm oil sourcing.
No. Palm olein is the liquid fraction obtained by fractionating crude or RBD palm oil. Crude palm oil contains both olein and stearin fractions together. When labels say “palm oil,” the product is often RBD palm olein, but always verify the specification.
No. Palm oil and its fractions are naturally free of trans fatty acids because they are not hydrogenated. This is one of the key reasons palm stearin has replaced partially hydrogenated oils in margarine and shortening since PHO bans took effect.
RSPO Segregated (SG) means the physical palm oil in the product comes exclusively from RSPO-certified sources and has been kept separate from non-certified oil throughout the supply chain. It provides genuine traceability, unlike Mass Balance or Book & Claim models.
Not directly. Palm stearin has a higher melting point and different crystallisation behaviour than cocoa butter. Palm mid-fraction (PMF) has a much closer triglyceride profile to cocoa butter and is the primary ingredient in cocoa butter equivalents (CBEs) used in confectionery under EU Directive 2000/36/EC.
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