Palm oil is produced by harvesting and processing the fruits of the oil palm tree. The fresh fruit bunches are harvested from the plantation and transported to a palm oil mill where they are sterilized and stripped of their outer layers. The remaining fruit is then mashed or crushed to extract the oil, which is separated from the pulp using a series of centrifuges. The crude oil is then refined through various processes to remove impurities and produce a final product that can be used for a variety of purposes, including cooking, cosmetics, and biofuels.