Palm Acid Oil (PAO) is a by-product from the chemical refining of palm oil. It consists mainly of FFA (over 50%) and neutral oil, with 2-3% moisture and other impurities. It is very similar to palm fatty acid distillate (PFAD), but its FFA is generally lower. Except for some special uses, the relative proportion of FFA to neutral oil does not usually matter very much, as it does not affect its fitness for use. In most cases the smell and colour are more important. The main uses of PAO are in are animal feeds, in soap making and for distilled fatty acid production. This product is not now produced on any great scale outside Europe, because in Malaysia and Indonesia palm oil is refined by the physical process which gives PFAD rather than PAO.