Palm oil. February 2023
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February 28, 2023
Indonesia Shows It’s Possible to Tame Rainforest Destruction
KUBU RAYA, Indonesia—A decade ago, Indonesia was destroying its tropical rainforest at a faster rate than almost any other country.
Virgin forest five times the area of Los Angeles was vanishing every year in one of the earth’s most biologically diverse places, in large part to make way for plantations producing palm oil for consumer goods such as lipstick, pizza dough and shampoo.
Now, forest destruction in Indonesia is at its lowest pace in two decades. The rate of forest loss fell by more than half in Indonesia from 2015 through 2021, while it worsened in Brazil and the Democratic Republic of the Congo, homes to two other vast rainforests. It is a turnaround with lessons for policy makers, businesses and environmentalists around the world who are concerned about the effects of rainforest loss.
Indonesia’s success owes to a three-pronged and overlapping approach. Strict directives prohibiting wholesale forest clearance flowed from the top rungs of government starting about five years ago. Multinational consumer-product companies pledged to avoid palm oil that involved forest destruction, blacklisted forest-slashing plantations and tracked their activities with satellites. And environmental nonprofits exposed murky supply chains that long made it hard to know whether palm oil came from a company that was knocking down forests. Wall Street Journal
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Malaysia-More than 97% of oil palm planted areas MSPO-certified
KUALA LUMPUR: A total of 5.5 million hectares or 97.88 per cent of the total 5.6 million oil palm planted areas in the country have obtained the Malaysia Sustainable Palm Oil (MSPO) certification as at Jan 31 this year, said Deputy Plantation and Commodities Minister Datuk Siti Aminah Aching.
She said the overall performance of the MSPO achievement is rated through the oil palm plantation areas that have been MSPO-certified compared with the oil palm plantations licensed by the Malaysian Palm Oil Board (MPOB).
According to the MSPO Trace application, there are two types of reports on plantation areas, namely the total areas marked for the purpose of MSPO certification and oil palm plantation areas that have been MSPO-certified.
The MSPO-certified palm plantation area is different from the total area covered for the purpose of MSPO certification.
“With this, the percentage of oil palm plantation areas that have been certified with MSPO compared with oil palm planted areas licensed by MPOB until Jan 31, 2023 was 97.88 per cent and not 113.99 per cent (as shown by MPSO Trace app),” she said during the question-and-answer session in Dewan Rakyat today. The Sun Daily
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Malaysia-High CPO prices a boon for FGV
KUALA LUMPUR: FGV Holdings Bhd expects to perform satisfactorily in line with the projected favourable crude palm oil (CPO) price movement
Net profit rose to RM1.32bil in the financial year ended Dec 31, 2022 (FY22) from RM1.17bil in the previous year. The group attributed it to the higher average CPO prices and improved contribution from its logistics business.
Its revenue surged to RM25.56bil in FY22 compared with RM19.57bil previously, the plantation group said in a filing with Bursa Malaysia yesterday.Basic earnings per share stood at 36.26 sen, versus 32.01 sen previously.
The group has announced a final dividend payment of 11 sen per share, translating into a dividend payout of RM401.3mil.
It declared a total dividend payment of 15 sen per share for FY22. The StarMY
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Malaysia's FGV optimistic U.S. import ban will be lifted this year
KUALA LUMPUR, Feb 27 (Reuters) - Malaysian palm oil planter FGV Holdings (FGVH.KL) is optimistic that a U.S. import ban on its products would be lifted by the end of the year, its chief executive said on Monday.
FGV was banned by the U.S. Customs and Border Protection (CBP) in 2020 due to allegations of forced labour in its plantations. The company has since recruited an audit firm to review labour conditions of its workforce, which is mostly comprised of migrants.
On Monday, CEO Nazrul Mansor said FGV was in the process of remediating gaps identified by the audit firm and that it expects to submit a final report to the CBP by the end of the first quarter.
"We've got long list of items to do in order to get to the levels expected by the International Labour Organization (ILO) and CBP," Nazrul told reporters at an earnings news conference.
The company will upgrade housing facilities, compensate foreign workers who paid recruitment fees to secure jobs, ensure workers have access to passports, and adhere to laws on working hours, Nazrul said. Reuters
Indonesia Shows It’s Possible to Tame Rainforest Destruction
KUBU RAYA, Indonesia—A decade ago, Indonesia was destroying its tropical rainforest at a faster rate than almost any other country.
Virgin forest five times the area of Los Angeles was vanishing every year in one of the earth’s most biologically diverse places, in large part to make way for plantations producing palm oil for consumer goods such as lipstick, pizza dough and shampoo.
Now, forest destruction in Indonesia is at its lowest pace in two decades. The rate of forest loss fell by more than half in Indonesia from 2015 through 2021, while it worsened in Brazil and the Democratic Republic of the Congo, homes to two other vast rainforests. It is a turnaround with lessons for policy makers, businesses and environmentalists around the world who are concerned about the effects of rainforest loss.
Indonesia’s success owes to a three-pronged and overlapping approach. Strict directives prohibiting wholesale forest clearance flowed from the top rungs of government starting about five years ago. Multinational consumer-product companies pledged to avoid palm oil that involved forest destruction, blacklisted forest-slashing plantations and tracked their activities with satellites. And environmental nonprofits exposed murky supply chains that long made it hard to know whether palm oil came from a company that was knocking down forests. Wall Street Journal
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Malaysia-More than 97% of oil palm planted areas MSPO-certified
KUALA LUMPUR: A total of 5.5 million hectares or 97.88 per cent of the total 5.6 million oil palm planted areas in the country have obtained the Malaysia Sustainable Palm Oil (MSPO) certification as at Jan 31 this year, said Deputy Plantation and Commodities Minister Datuk Siti Aminah Aching.
She said the overall performance of the MSPO achievement is rated through the oil palm plantation areas that have been MSPO-certified compared with the oil palm plantations licensed by the Malaysian Palm Oil Board (MPOB).
According to the MSPO Trace application, there are two types of reports on plantation areas, namely the total areas marked for the purpose of MSPO certification and oil palm plantation areas that have been MSPO-certified.
The MSPO-certified palm plantation area is different from the total area covered for the purpose of MSPO certification.
“With this, the percentage of oil palm plantation areas that have been certified with MSPO compared with oil palm planted areas licensed by MPOB until Jan 31, 2023 was 97.88 per cent and not 113.99 per cent (as shown by MPSO Trace app),” she said during the question-and-answer session in Dewan Rakyat today. The Sun Daily
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Malaysia-High CPO prices a boon for FGV
KUALA LUMPUR: FGV Holdings Bhd expects to perform satisfactorily in line with the projected favourable crude palm oil (CPO) price movement
Net profit rose to RM1.32bil in the financial year ended Dec 31, 2022 (FY22) from RM1.17bil in the previous year. The group attributed it to the higher average CPO prices and improved contribution from its logistics business.
Its revenue surged to RM25.56bil in FY22 compared with RM19.57bil previously, the plantation group said in a filing with Bursa Malaysia yesterday.Basic earnings per share stood at 36.26 sen, versus 32.01 sen previously.
The group has announced a final dividend payment of 11 sen per share, translating into a dividend payout of RM401.3mil.
It declared a total dividend payment of 15 sen per share for FY22. The StarMY
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Malaysia's FGV optimistic U.S. import ban will be lifted this year
KUALA LUMPUR, Feb 27 (Reuters) - Malaysian palm oil planter FGV Holdings (FGVH.KL) is optimistic that a U.S. import ban on its products would be lifted by the end of the year, its chief executive said on Monday.
FGV was banned by the U.S. Customs and Border Protection (CBP) in 2020 due to allegations of forced labour in its plantations. The company has since recruited an audit firm to review labour conditions of its workforce, which is mostly comprised of migrants.
On Monday, CEO Nazrul Mansor said FGV was in the process of remediating gaps identified by the audit firm and that it expects to submit a final report to the CBP by the end of the first quarter.
"We've got long list of items to do in order to get to the levels expected by the International Labour Organization (ILO) and CBP," Nazrul told reporters at an earnings news conference.
The company will upgrade housing facilities, compensate foreign workers who paid recruitment fees to secure jobs, ensure workers have access to passports, and adhere to laws on working hours, Nazrul said. Reuters
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February 27, 2023
Two more palm oil giants quit no-deforestation initiative HCSA
The withdrawal of Singapore-based Golden Agri-Resources and Malaysia's IOI Group from the High Carbon Stock Approach has raised concern among environmental groups that palm oil companies are weakening their sustainability pledges. It also casts a cloud over voluntary initiatives to curb deforestation.
Two large palm oil companies have quit a voluntary framework set up to help forest-risk companies meet their no-deforestation pledges.
Golden Agri-Resources (GAR), a large palm oil company owned by Indonesian conglomerate Sinar Mas, and IOI Group, a Malaysian competitor, have withdrawn from the High Carbon Stock Approach (HCSA), bringing the tally of palm oil companies quitting HCSA to four in three years.
Wilmar International, the world’s biggest palm oil firm, resigned citing governance issues in 2020. Sime Darby Plantation, the market leader for selling certified sustainable palm oil, left in the same year, blaming Covid 19-induced budget constraints. Eco Business
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Malaysia-Restoring wildlife to oil palm landscapes
EAST Sabah is a remote and sparsely populated peninsula, still covered in large areas by protected lowland forest and mangrove swamp. It is home to many endemic and endangered species, but their habitats and migration routes have become increasingly fragmented as oil palm plantations have spread.
Forest connectivity is considered essential for the survival of species such as the Bornean pygmy elephant. About a third of the estimated 1,500 remaining wild individuals reside in east Sabah, along with scattered herds of wild Banteng cattle that number approximately 400 in Borneo, according to RFF. “We have already lost the rhino. We need to connect the fragmented forests for the wildlife to move and survive,” says Jain. Daily Express
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Palm Oil, Long the Bad Guy, Has Something to Teach Us
Other industries could learn something from its turnaround story
Depending on how you look at it, palm oil is an angel or a devil. The angelic part is its versatility: no other vegetable oil is like it. As the Guardian puts it, palm oil is cheaper than other options, and works in wonderous ways, making "cookies more healthy, soap more bubbly and crisps more crispy. The oil could even make lipstick smoother and keep ice-cream from melting." But desire for it has driven 30 years of deforestation in Indonesia and Malaysia, and that destruction deeply sullied the oil's reputation. But as Benji Jones writes for Vox, there may be a redemption story underway. That deforestation trend has reversed over the past decade, with palm oil-related deforestation hitting a 22-year low in Indonesia in 2021. Newsner
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Comment: We can help African countries hold onto their forests, and at low cost
February 24 - Harrison Karnwea is in his late sixties and meant to be retired, but the tall, calm rubber-company executive was at a World Bank Forest and Climate Resilience conference in Monrovia earlier this month, working the room and putting in long hours to help protect Liberia’s enormous forest wealth.
The small West African country contains the largest extent of tropical forest in the region, and two huge tracts of megadiverse Upper Guinean Forest, which are home to chimpanzees and pigmy hippos. It is also one of the poorest countries on the Africa continent, after a brutal civil war and an Ebola outbreak that set back its recovery.
The World Bank recently benchmarked Liberia against other neighbouring countries and assessed it to be the most environmentally sustainable country in West Africa. Despite extensive forest degradation, forest clearance has remained relatively low in the last 20 years, compared with its neighbours, and it still maintains more than four million hectares of primary forest. However, the World Bank also concluded it has the least efficient land use in the region, and there is a high risk that as it tries to grow its economy deforestation will accelerate. Reuters
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Nigeria-CBN Policy Boosts Local Palm Oil By 360,000 Tonnes
The Central Bank of Nigeria (CBN) has boosted local palm oil production by more than 360,000 tonnes in the last one year through its backward integration. The surge in local production is valued at N158.5billion ($343.8million). This was achieved through massive investment and foreign exchange restriction by CBN to discourage importers of the produce as the country spends more than $800million annually on crude palm oil importation. Although, it was gathered that the country was battling with a deficit of 1.79 million tonnes, leading to importation of 450,000 tonnes or 54 per cent increase in 2022 from 225,000 tonnes in 2021. Nevertheless, data from the Nigerian Exchange Group (NGX) revealed that two local palm oil producers, Okomu Oil Palm and Presco Plc, grew their revenue by 83 per cent to N82.47 billion in the first half of 2022 from N45.09 billion in the corresponding period of 2021. However, there was a 29.2 per cent back off in palm oil prices in the fourth quarter of 2022 because of the increased supply from Malaysia and Indonesia, leading to decline in revenue reported by Okomu Oil Palm and Presco Plc. Okomu and Presco’s revenue declined by 36.47 per cent to N26.91 billion in the third quarter of 2022 from N42.36 billion in the second quarter of 2022, bringing total revenue to N59.84 billion in the second half of 2022, 27.43 per cent down from N82.46 billion in the first half of 2022. New TelegraphNG
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ASEAN, EU reinforce cooperation relations
The 30th ASEAN-EU Joint Cooperation Committee (JCC) Meeting has been convened in Jakarta, with both sides reaffirming their commitment to strengthening ASEAN-EU cooperation and to uphold ASEAN centrality based on shared relevant fundamental principles of their respective Indo-Pacific approaches.
Jakarta (VNA) - The 30th ASEAN-EU Joint Cooperation Committee (JCC) Meeting has been convened in Jakarta, with both sides reaffirming their commitment to strengthening ASEAN-EU cooperation and to uphold ASEAN centrality based on shared relevant fundamental principles of their respective Indo-Pacific approaches.
They agreed to explore the potential collaboration in the four priority areas of the ASEAN Outlook on the Indo-Pacific (AOIP) and the seven ones of the EU Strategy for Cooperation in the Indo-Pacific, all in accordance with the principles of the Treaty of Amity and Cooperation in Southeast Asia, the ASEAN Charter, and the AOIP.
They both acknowledged the launch of the Team Europe Initiative on Sustainable Connectivity and the operationalisation of the Green Team Europe Initiative of the EU, which aim to enhance ASEAN-EU cooperation and be complemented by concrete projects at both regional and national levels across Southeast Asia, and welcomed the EU's expected contribution of around10 billion EUR (10.54 billion USD) for the implementation of Global Gateway in the ASEAN region.
The two sides reaffirmed the importance of and their commitment to the 2030 Agenda for Sustainable Development, the United Nations Framework Convention on Climate Change (UNFCCC), the Paris Agreement, and the Convention on Biological Diversity (CBD) and related Kunming-Montreal Global Biodiversity Framework, with a view to promoting sustainable development and addressing the global challenges of climate change, biodiversity loss and environmental protection. Vietnam Plus
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Two more palm oil giants quit no-deforestation initiative HCSA
The withdrawal of Singapore-based Golden Agri-Resources and Malaysia's IOI Group from the High Carbon Stock Approach has raised concern among environmental groups that palm oil companies are weakening their sustainability pledges. It also casts a cloud over voluntary initiatives to curb deforestation.
Two large palm oil companies have quit a voluntary framework set up to help forest-risk companies meet their no-deforestation pledges.
Golden Agri-Resources (GAR), a large palm oil company owned by Indonesian conglomerate Sinar Mas, and IOI Group, a Malaysian competitor, have withdrawn from the High Carbon Stock Approach (HCSA), bringing the tally of palm oil companies quitting HCSA to four in three years.
Wilmar International, the world’s biggest palm oil firm, resigned citing governance issues in 2020. Sime Darby Plantation, the market leader for selling certified sustainable palm oil, left in the same year, blaming Covid 19-induced budget constraints. Eco Business
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Malaysia-Restoring wildlife to oil palm landscapes
EAST Sabah is a remote and sparsely populated peninsula, still covered in large areas by protected lowland forest and mangrove swamp. It is home to many endemic and endangered species, but their habitats and migration routes have become increasingly fragmented as oil palm plantations have spread.
Forest connectivity is considered essential for the survival of species such as the Bornean pygmy elephant. About a third of the estimated 1,500 remaining wild individuals reside in east Sabah, along with scattered herds of wild Banteng cattle that number approximately 400 in Borneo, according to RFF. “We have already lost the rhino. We need to connect the fragmented forests for the wildlife to move and survive,” says Jain. Daily Express
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Palm Oil, Long the Bad Guy, Has Something to Teach Us
Other industries could learn something from its turnaround story
Depending on how you look at it, palm oil is an angel or a devil. The angelic part is its versatility: no other vegetable oil is like it. As the Guardian puts it, palm oil is cheaper than other options, and works in wonderous ways, making "cookies more healthy, soap more bubbly and crisps more crispy. The oil could even make lipstick smoother and keep ice-cream from melting." But desire for it has driven 30 years of deforestation in Indonesia and Malaysia, and that destruction deeply sullied the oil's reputation. But as Benji Jones writes for Vox, there may be a redemption story underway. That deforestation trend has reversed over the past decade, with palm oil-related deforestation hitting a 22-year low in Indonesia in 2021. Newsner
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Comment: We can help African countries hold onto their forests, and at low cost
February 24 - Harrison Karnwea is in his late sixties and meant to be retired, but the tall, calm rubber-company executive was at a World Bank Forest and Climate Resilience conference in Monrovia earlier this month, working the room and putting in long hours to help protect Liberia’s enormous forest wealth.
The small West African country contains the largest extent of tropical forest in the region, and two huge tracts of megadiverse Upper Guinean Forest, which are home to chimpanzees and pigmy hippos. It is also one of the poorest countries on the Africa continent, after a brutal civil war and an Ebola outbreak that set back its recovery.
The World Bank recently benchmarked Liberia against other neighbouring countries and assessed it to be the most environmentally sustainable country in West Africa. Despite extensive forest degradation, forest clearance has remained relatively low in the last 20 years, compared with its neighbours, and it still maintains more than four million hectares of primary forest. However, the World Bank also concluded it has the least efficient land use in the region, and there is a high risk that as it tries to grow its economy deforestation will accelerate. Reuters
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Nigeria-CBN Policy Boosts Local Palm Oil By 360,000 Tonnes
The Central Bank of Nigeria (CBN) has boosted local palm oil production by more than 360,000 tonnes in the last one year through its backward integration. The surge in local production is valued at N158.5billion ($343.8million). This was achieved through massive investment and foreign exchange restriction by CBN to discourage importers of the produce as the country spends more than $800million annually on crude palm oil importation. Although, it was gathered that the country was battling with a deficit of 1.79 million tonnes, leading to importation of 450,000 tonnes or 54 per cent increase in 2022 from 225,000 tonnes in 2021. Nevertheless, data from the Nigerian Exchange Group (NGX) revealed that two local palm oil producers, Okomu Oil Palm and Presco Plc, grew their revenue by 83 per cent to N82.47 billion in the first half of 2022 from N45.09 billion in the corresponding period of 2021. However, there was a 29.2 per cent back off in palm oil prices in the fourth quarter of 2022 because of the increased supply from Malaysia and Indonesia, leading to decline in revenue reported by Okomu Oil Palm and Presco Plc. Okomu and Presco’s revenue declined by 36.47 per cent to N26.91 billion in the third quarter of 2022 from N42.36 billion in the second quarter of 2022, bringing total revenue to N59.84 billion in the second half of 2022, 27.43 per cent down from N82.46 billion in the first half of 2022. New TelegraphNG
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ASEAN, EU reinforce cooperation relations
The 30th ASEAN-EU Joint Cooperation Committee (JCC) Meeting has been convened in Jakarta, with both sides reaffirming their commitment to strengthening ASEAN-EU cooperation and to uphold ASEAN centrality based on shared relevant fundamental principles of their respective Indo-Pacific approaches.
Jakarta (VNA) - The 30th ASEAN-EU Joint Cooperation Committee (JCC) Meeting has been convened in Jakarta, with both sides reaffirming their commitment to strengthening ASEAN-EU cooperation and to uphold ASEAN centrality based on shared relevant fundamental principles of their respective Indo-Pacific approaches.
They agreed to explore the potential collaboration in the four priority areas of the ASEAN Outlook on the Indo-Pacific (AOIP) and the seven ones of the EU Strategy for Cooperation in the Indo-Pacific, all in accordance with the principles of the Treaty of Amity and Cooperation in Southeast Asia, the ASEAN Charter, and the AOIP.
They both acknowledged the launch of the Team Europe Initiative on Sustainable Connectivity and the operationalisation of the Green Team Europe Initiative of the EU, which aim to enhance ASEAN-EU cooperation and be complemented by concrete projects at both regional and national levels across Southeast Asia, and welcomed the EU's expected contribution of around10 billion EUR (10.54 billion USD) for the implementation of Global Gateway in the ASEAN region.
The two sides reaffirmed the importance of and their commitment to the 2030 Agenda for Sustainable Development, the United Nations Framework Convention on Climate Change (UNFCCC), the Paris Agreement, and the Convention on Biological Diversity (CBD) and related Kunming-Montreal Global Biodiversity Framework, with a view to promoting sustainable development and addressing the global challenges of climate change, biodiversity loss and environmental protection. Vietnam Plus
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February 25, 2023
Malaysia-RM80m allocated to palm oil industry to enhance sustainability, counter anti-palm oil campaign
KUALA LUMPUR (Feb 24): The government has proposed to allocate RM80 million for the palm oil industry to improve its sustainability practices, and counter the anti-palm oil campaign movement, said Prime Minister Datuk Seri Anwar Ibrahim.
Anwar, who is also the finance minister, said the government is opposed to activities of the anti-palm oil movement, spearheaded by international non-governmental organisations (NGOs).
“Thailand will also join forces with Malaysia and Indonesia to fight the anti-palm oil campaigners. This is a new development because previously, only Malaysia and Indonesia worked together (in this effort),” he said in the Revised Budget 2023 tabled in Parliament on Friday (Feb 24).
Malaysia and Indonesia, which together account for 80% of the world’s palm oil production, have been at loggerheads with the international NGOs and the European Union (EU) over palm oil production practices due to concerns over deforestation.
Malaysian palm oil agencies have criticised international NGOs such as Greenpeace and Friends of the Earth over their claims that were allegedly motivated by politics and trade, rather than genuine concern for environmental conservation. The Edge Markets
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Budget 2023 can drive growth of plantation, commodities industries in M’sia, says Fadillah
KUCHING (Feb 25): The Budget 2023 will be able to drive the growth of the plantation and commodities industries in the Malaysia, said Deputy Prime Minister Dato Sri Fadillah Yusof.
Fadillah, who is also Plantation and Commodities Minister, believed the budget would benefit stakeholders of the industries and that it is in line with the ‘Madani’ concept.
“My ministry believes one of the main focuses of the budget is looking after the welfare and well-being of small farmers in the country in order to continue driving the plantation sector forward,” he said in a statement yesterday.
Fadillah also remarked that his ministry is determined to see the competitiveness and governance of the country be further improved.
“In 2022, the agri-commodity sector contributed 5.6 per cent to the country’s gross domestic product (GDP) with an export value of RM207.3 billion and a trade surplus of RM146.5 billion.“Without a doubt, the sector is the most important component of the country’s economy,” he said. The Borneo Post
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Malaysia pays 18 KAI FA-50 light combat aircraft with palm oilKUALA LUMPUR, MALAYSIA — The winner of the tender for 18 Royal Malaysian Air Force [RMAF] Light Attack Aircraft [LCA] has been announced. The winner of the tender with a budget of about 900 million dollars, for which six companies submitted bids, is the South Korean company KAI.
A $919 million contract was signed between KAI and the Malaysian Ministry of Defense for the supply of the FA-50 light combat aircraft. According to the contract, deliveries of the aircraft should begin in 2026.
On the other hand, South Korea aims to sell another 18 FA-50s to Malaysia in the future. Malaysia announced that at least half of the payment would be made in palm oil.
In 2021, the companies that submitted their bids for the Malaysian Air Force Light Attack Aircraft tender and their products were as follows: KAI/Kemalak Systems: FA-50, TAI Hurjet, Hongdu L-15, Leonardo M-346, Hindustan Aeronautics Tejas and Rosoboronexport MiG-35.
The requirements of the Malaysian Air Force for the tender were the phased delivery of 36 aircraft between the signing of the contract, the ability to reload the aircraft, as well as equipping them with beyond-visual-range missiles. The other two requirements were supersonic speed and the possibility of industrial cooperation. The latter condition concerned 30% of the aircraft’s parts to be produced locally. Bulgarian Military
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REPORT-Few financial institutions address deforestation as systemic risk
Tackling deforestation is a critical step towards achieving the Paris climate goals, but 40% of companies reliant on commodities linked to it, and the financial institutions behind them, do not have a policy to address it, according to non-profit Global Canopy.
Its Forest 500 list looks at 350 companies with the greatest exposure to palm oil, soy, beef, leather, timber and pulp and paper, and 150 banks and asset managers which lend to or invest in them.
Asset managers and other financial institutions on the list provide $6.1 trillion in finance to companies in forest-risk supply chains, but few are addressing deforestation as a systemic risk, including the reputational, regulatory and physical risks to investment assets, according to the report.
"It is becoming ever more difficult for the finance sector to ignore the role they play," the Global Canopy Forest 500 report says.
Only 11% of the financial institutions most exposed to deforestation have policies for all four commodities with the greatest impact: palm oil, soy, beef and paper, and 61% that are most exposed to deforestation do not have a deforestation policy covering their lending and investments. Pensions & Investments
Malaysia-RM80m allocated to palm oil industry to enhance sustainability, counter anti-palm oil campaign
KUALA LUMPUR (Feb 24): The government has proposed to allocate RM80 million for the palm oil industry to improve its sustainability practices, and counter the anti-palm oil campaign movement, said Prime Minister Datuk Seri Anwar Ibrahim.
Anwar, who is also the finance minister, said the government is opposed to activities of the anti-palm oil movement, spearheaded by international non-governmental organisations (NGOs).
“Thailand will also join forces with Malaysia and Indonesia to fight the anti-palm oil campaigners. This is a new development because previously, only Malaysia and Indonesia worked together (in this effort),” he said in the Revised Budget 2023 tabled in Parliament on Friday (Feb 24).
Malaysia and Indonesia, which together account for 80% of the world’s palm oil production, have been at loggerheads with the international NGOs and the European Union (EU) over palm oil production practices due to concerns over deforestation.
Malaysian palm oil agencies have criticised international NGOs such as Greenpeace and Friends of the Earth over their claims that were allegedly motivated by politics and trade, rather than genuine concern for environmental conservation. The Edge Markets
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Budget 2023 can drive growth of plantation, commodities industries in M’sia, says Fadillah
KUCHING (Feb 25): The Budget 2023 will be able to drive the growth of the plantation and commodities industries in the Malaysia, said Deputy Prime Minister Dato Sri Fadillah Yusof.
Fadillah, who is also Plantation and Commodities Minister, believed the budget would benefit stakeholders of the industries and that it is in line with the ‘Madani’ concept.
“My ministry believes one of the main focuses of the budget is looking after the welfare and well-being of small farmers in the country in order to continue driving the plantation sector forward,” he said in a statement yesterday.
Fadillah also remarked that his ministry is determined to see the competitiveness and governance of the country be further improved.
“In 2022, the agri-commodity sector contributed 5.6 per cent to the country’s gross domestic product (GDP) with an export value of RM207.3 billion and a trade surplus of RM146.5 billion.“Without a doubt, the sector is the most important component of the country’s economy,” he said. The Borneo Post
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Malaysia pays 18 KAI FA-50 light combat aircraft with palm oilKUALA LUMPUR, MALAYSIA — The winner of the tender for 18 Royal Malaysian Air Force [RMAF] Light Attack Aircraft [LCA] has been announced. The winner of the tender with a budget of about 900 million dollars, for which six companies submitted bids, is the South Korean company KAI.
A $919 million contract was signed between KAI and the Malaysian Ministry of Defense for the supply of the FA-50 light combat aircraft. According to the contract, deliveries of the aircraft should begin in 2026.
On the other hand, South Korea aims to sell another 18 FA-50s to Malaysia in the future. Malaysia announced that at least half of the payment would be made in palm oil.
In 2021, the companies that submitted their bids for the Malaysian Air Force Light Attack Aircraft tender and their products were as follows: KAI/Kemalak Systems: FA-50, TAI Hurjet, Hongdu L-15, Leonardo M-346, Hindustan Aeronautics Tejas and Rosoboronexport MiG-35.
The requirements of the Malaysian Air Force for the tender were the phased delivery of 36 aircraft between the signing of the contract, the ability to reload the aircraft, as well as equipping them with beyond-visual-range missiles. The other two requirements were supersonic speed and the possibility of industrial cooperation. The latter condition concerned 30% of the aircraft’s parts to be produced locally. Bulgarian Military
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REPORT-Few financial institutions address deforestation as systemic risk
Tackling deforestation is a critical step towards achieving the Paris climate goals, but 40% of companies reliant on commodities linked to it, and the financial institutions behind them, do not have a policy to address it, according to non-profit Global Canopy.
Its Forest 500 list looks at 350 companies with the greatest exposure to palm oil, soy, beef, leather, timber and pulp and paper, and 150 banks and asset managers which lend to or invest in them.
Asset managers and other financial institutions on the list provide $6.1 trillion in finance to companies in forest-risk supply chains, but few are addressing deforestation as a systemic risk, including the reputational, regulatory and physical risks to investment assets, according to the report.
"It is becoming ever more difficult for the finance sector to ignore the role they play," the Global Canopy Forest 500 report says.
Only 11% of the financial institutions most exposed to deforestation have policies for all four commodities with the greatest impact: palm oil, soy, beef and paper, and 61% that are most exposed to deforestation do not have a deforestation policy covering their lending and investments. Pensions & Investments
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February 24, 2023
Malaysian Deputy Prime Minister Fadillah Reaffirms No Deforestation for Palm Oil
KUALA LUMPUR: There will be no new land clearing or deforestation for oil palm plantations, says Deputy Prime Minister Datuk Seri Fadillah Yusof.He said the government was committed to maintaining the status quo of current land use for the purpose of oil palm plantations.
“There is no new land clearing or deforestation for the purpose of oil palm plantations.
“If there are, such lands are privately owned. And they didn’t clear the forests; instead, on their own land, they replaced old crops with new ones,” he told the reporters after the Global Business Forum 2023 here yesterday.
“Everyone wants to care for the environment and the welfare of workers, including the EU or even the United States. Malaysia is also the same.
“However, while they are trying to execute it, they might have a different set of standards from us. We have different scenarios (here in Malaysia),” he added.
Fadillah also said that the Malaysian Sustainable Palm Oil (MSPO) was on par with the Europe-based Roundtable on Sustainable Palm Oil (RSPO) scheme.
“MSPO is on par with RSPO; in fact, it is even better. If they want to impose some new regulations or laws (pertaining to plantations), they need to talk to us so we can work together to ensure food security as well as take care of the welfare of the rakyat. They need to recognise our efforts,” he said. The StarMY
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Conserving wildlife through sustainable palm oil
THE Malaysian Palm Oil Board (MPOB) always ensures that palm oil production does not affect the environment and wildlife in the country.
Supporting the concept of 'living together in harmony' between wildlife and oil palm, we make sure that the Malaysian palm oil production complies with the country's current laws and regulations in an effort to achieve the Sustainable Development Goals.
We have revised the Malaysian Sustainable Palm Oil (MSPO) standards last year where improvements were made on matters involving social and labour, good practices, high conservation values, social impact assessment, and quantification of greenhouse gas (GHG) emissions.
Retaining high conservation values, high carbon stock areas and riparian buffers, which are part of the requirements of certification schemes such as MSPO, provide opportunities for plantation companies to actively contribute towards wildlife conservation. New Straits Times
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Felda in fresh arbitration for US$678mil sale of Eagle High stake back to Rajawali
KUALA LUMPUR (Feb 23): Federal Land Authority (Felda) unit FIC Properties Sdn Bhd (FICP) has initiated fresh arbitration against the Rajawali Group regarding a put option to sell its 37% stake in PT Eagle High Plantations Tbk for US$678.09 million back to the Indonesian company.
The put option is part of the share sale agreement inked between FICP and Rajawali, when the former bought the 37% stake back in 2015, said minister in the prime minister’s department (law and institutional reform) Datuk Seri Azalina Othman Said.
The latest arbitration was initiated on Jan 17 at the Singapore International Arbitration Centre (SIAC). Rajawali disputed the put option as Felda’s unit exercised it.
Azalina said in a parliamentary written reply that FICP had made second attempt to exercise the put option on May 11 last year. Felda’s first attempt to exercise the put option was in May 2019.
According to her, either PT Rajawali Capital International or PT Rajawali Capital was supposed to pay FICP US$678.09 million on May 25, 2022 to buy back the stake.
It is noted that FICP bought the stake in 2015 for US$505.4 million (around RM2.2 billion). The put option entails a 6% interest per annum from May 11, 2017 to the date of full payment, according to a statement by Felda last year. The Edge Markets
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Indonesia’s palm oil tycoon Darmadi gets 15 years for corruption
Surya Darmadi ordered to repay the state equivalent of $2.6bn over corruption scheme that cleared protected forests.
Medan, Indonesia – Surya Darmadi, one of Indonesia’s biggest palm oil tycoons, has been sentenced to 15 years in prison and ordered to repay the state the equivalent of $2.6bn for his role in a corruption scheme that caused the deforestation of thousands of hectares of protected land in Sumatra.
Darmadi was charged with bribing several Indonesian officials in Riau Province — a major centre for palm oil production — to allow him to convert more than 36,420 hectares (90,000 acres) of forest into oil palm estates under subsidiaries of his company, PT Duta Palma.
Investigators who delved into the company’s finances before the trial alleged that the estates earned PT Duta Palma about $40m per month, and accused Darmadi of committing money laundering and tax evasion from 2002 onwards.
Palm oil, used in countless products from food and cosmetics to biofuel, is a highly lucrative business and Indonesia is the world’s largest producer and exporter of palm oil products. Indonesia exported in excess of 30 million tonnes of palm oil products in 2022, generating more than $39bn in revenue, according to the Indonesian Palm Oil Association. Reuters
Malaysian Deputy Prime Minister Fadillah Reaffirms No Deforestation for Palm Oil
KUALA LUMPUR: There will be no new land clearing or deforestation for oil palm plantations, says Deputy Prime Minister Datuk Seri Fadillah Yusof.He said the government was committed to maintaining the status quo of current land use for the purpose of oil palm plantations.
“There is no new land clearing or deforestation for the purpose of oil palm plantations.
“If there are, such lands are privately owned. And they didn’t clear the forests; instead, on their own land, they replaced old crops with new ones,” he told the reporters after the Global Business Forum 2023 here yesterday.
“Everyone wants to care for the environment and the welfare of workers, including the EU or even the United States. Malaysia is also the same.
“However, while they are trying to execute it, they might have a different set of standards from us. We have different scenarios (here in Malaysia),” he added.
Fadillah also said that the Malaysian Sustainable Palm Oil (MSPO) was on par with the Europe-based Roundtable on Sustainable Palm Oil (RSPO) scheme.
“MSPO is on par with RSPO; in fact, it is even better. If they want to impose some new regulations or laws (pertaining to plantations), they need to talk to us so we can work together to ensure food security as well as take care of the welfare of the rakyat. They need to recognise our efforts,” he said. The StarMY
----------
Conserving wildlife through sustainable palm oil
THE Malaysian Palm Oil Board (MPOB) always ensures that palm oil production does not affect the environment and wildlife in the country.
Supporting the concept of 'living together in harmony' between wildlife and oil palm, we make sure that the Malaysian palm oil production complies with the country's current laws and regulations in an effort to achieve the Sustainable Development Goals.
We have revised the Malaysian Sustainable Palm Oil (MSPO) standards last year where improvements were made on matters involving social and labour, good practices, high conservation values, social impact assessment, and quantification of greenhouse gas (GHG) emissions.
Retaining high conservation values, high carbon stock areas and riparian buffers, which are part of the requirements of certification schemes such as MSPO, provide opportunities for plantation companies to actively contribute towards wildlife conservation. New Straits Times
----------
Felda in fresh arbitration for US$678mil sale of Eagle High stake back to Rajawali
KUALA LUMPUR (Feb 23): Federal Land Authority (Felda) unit FIC Properties Sdn Bhd (FICP) has initiated fresh arbitration against the Rajawali Group regarding a put option to sell its 37% stake in PT Eagle High Plantations Tbk for US$678.09 million back to the Indonesian company.
The put option is part of the share sale agreement inked between FICP and Rajawali, when the former bought the 37% stake back in 2015, said minister in the prime minister’s department (law and institutional reform) Datuk Seri Azalina Othman Said.
The latest arbitration was initiated on Jan 17 at the Singapore International Arbitration Centre (SIAC). Rajawali disputed the put option as Felda’s unit exercised it.
Azalina said in a parliamentary written reply that FICP had made second attempt to exercise the put option on May 11 last year. Felda’s first attempt to exercise the put option was in May 2019.
According to her, either PT Rajawali Capital International or PT Rajawali Capital was supposed to pay FICP US$678.09 million on May 25, 2022 to buy back the stake.
It is noted that FICP bought the stake in 2015 for US$505.4 million (around RM2.2 billion). The put option entails a 6% interest per annum from May 11, 2017 to the date of full payment, according to a statement by Felda last year. The Edge Markets
----------
Indonesia’s palm oil tycoon Darmadi gets 15 years for corruption
Surya Darmadi ordered to repay the state equivalent of $2.6bn over corruption scheme that cleared protected forests.
Medan, Indonesia – Surya Darmadi, one of Indonesia’s biggest palm oil tycoons, has been sentenced to 15 years in prison and ordered to repay the state the equivalent of $2.6bn for his role in a corruption scheme that caused the deforestation of thousands of hectares of protected land in Sumatra.
Darmadi was charged with bribing several Indonesian officials in Riau Province — a major centre for palm oil production — to allow him to convert more than 36,420 hectares (90,000 acres) of forest into oil palm estates under subsidiaries of his company, PT Duta Palma.
Investigators who delved into the company’s finances before the trial alleged that the estates earned PT Duta Palma about $40m per month, and accused Darmadi of committing money laundering and tax evasion from 2002 onwards.
Palm oil, used in countless products from food and cosmetics to biofuel, is a highly lucrative business and Indonesia is the world’s largest producer and exporter of palm oil products. Indonesia exported in excess of 30 million tonnes of palm oil products in 2022, generating more than $39bn in revenue, according to the Indonesian Palm Oil Association. Reuters
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February 22, 2023
Malaysia-Sime Darby Plantation welcomed US delegation to Carey Island operations
Petaling Jaya, 22 February 2023 – Sime Darby Plantation Berhad (SDP) welcomed a delegation from the United States of America last Wednesday, to better understand plantation industry labour practices and operations. The delegation comprised representatives of the United States Customs and Border Protection (USCBP), the Department of Labour, Immigration & Customs Enforcement, Homeland Security Investigations and officials from the US Embassy in Kuala Lumpur.
Expressing his appreciation to the delegation for taking the time to visit SDP’s estates in Carey Island, Group Managing Director, Mohamad Helmy Othman Basha shared the company’s experience and the enormity of the challenges it faced when instituting
sweeping changes of labour practices and standards throughout its Malaysian operations.
“Given the sheer scale and complexity of our operations, we really had our work cut out for us to ensure our workers feel engaged and safe, and have a clear understanding of their rights. Today, they have a high level of trust in the platforms we had established for them to communicate their questions, concerns or grievances. On our part, we have committed to responding in a timely manner and to continuously monitor the quality of their living and working conditions,” said Mohamad Helmy.
The delegates also met with Malaysia’s Deputy Prime Minister and Minister of Plantation and Commodities, Dato’ Sri Haji Fadillah Haji Yusof, and had the opportunity to discuss continued bilateral collaboration and trade issues during a working lunch with the minister at the end of the visit. Download Press Release
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Indonesia-Palm Oil Producers Only Reach 43.56 Percent of DMO Target
TEMPO.CO, Jakarta - The Indonesian Trade Ministry’s acting director general of domestic trade, Kasan, said the oil palm domestic obligation market (DMO) realization had only reached half of the target. The government has increased the palm oil DMO to 450,000 tons to produce cooking oil sold in bulk and under the Minyakita brand.
“Until February 20, at 18:00 (Indonesia Western Time) the cooking oil DMO from producers reached 196,032 tons or 43.56 percent of the total DMO allocation of 450,000 tons,” said Kasan to Tempo on February 20.
According to him, the palm oil distributed under the DMO is still dominated by bulk cooking oil which amounts to 153.347 tons (78.23 percent). In comparison, the Minyakita cooking oil brand amounted to 42,685 tons (21.77 percent). Tempo
Malaysia-Sime Darby Plantation welcomed US delegation to Carey Island operations
Petaling Jaya, 22 February 2023 – Sime Darby Plantation Berhad (SDP) welcomed a delegation from the United States of America last Wednesday, to better understand plantation industry labour practices and operations. The delegation comprised representatives of the United States Customs and Border Protection (USCBP), the Department of Labour, Immigration & Customs Enforcement, Homeland Security Investigations and officials from the US Embassy in Kuala Lumpur.
Expressing his appreciation to the delegation for taking the time to visit SDP’s estates in Carey Island, Group Managing Director, Mohamad Helmy Othman Basha shared the company’s experience and the enormity of the challenges it faced when instituting
sweeping changes of labour practices and standards throughout its Malaysian operations.
“Given the sheer scale and complexity of our operations, we really had our work cut out for us to ensure our workers feel engaged and safe, and have a clear understanding of their rights. Today, they have a high level of trust in the platforms we had established for them to communicate their questions, concerns or grievances. On our part, we have committed to responding in a timely manner and to continuously monitor the quality of their living and working conditions,” said Mohamad Helmy.
The delegates also met with Malaysia’s Deputy Prime Minister and Minister of Plantation and Commodities, Dato’ Sri Haji Fadillah Haji Yusof, and had the opportunity to discuss continued bilateral collaboration and trade issues during a working lunch with the minister at the end of the visit. Download Press Release
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Indonesia-Palm Oil Producers Only Reach 43.56 Percent of DMO Target
TEMPO.CO, Jakarta - The Indonesian Trade Ministry’s acting director general of domestic trade, Kasan, said the oil palm domestic obligation market (DMO) realization had only reached half of the target. The government has increased the palm oil DMO to 450,000 tons to produce cooking oil sold in bulk and under the Minyakita brand.
“Until February 20, at 18:00 (Indonesia Western Time) the cooking oil DMO from producers reached 196,032 tons or 43.56 percent of the total DMO allocation of 450,000 tons,” said Kasan to Tempo on February 20.
According to him, the palm oil distributed under the DMO is still dominated by bulk cooking oil which amounts to 153.347 tons (78.23 percent). In comparison, the Minyakita cooking oil brand amounted to 42,685 tons (21.77 percent). Tempo
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February 21, 2023
Smallholders from global south take the stage for inclusive CSDDD
The EU is currently developing its potentially ground-breaking Corporate Sustainability Due Diligence Directive (CSDDD). The CSDDD sets out requirements for companies operating in the EU market to conduct human rights and environmental due diligence in their value chains. This ambitious directive has the potential to improve the working conditions and livelihoods of millions of workers and smallholder farmers, and their families.
However, in its current form, the directive fails to take into account the needs of the huge and essential group of smallholders found at the beginning of agricultural value chains worldwide. Smallholder farmers face daily human rights violations while being scapegoats for numerous environmental issues. So how can the CSDDD better equip European companies to work with smallholders to tackle these issues?
In collaboration with Solidaridad, Fairtrade International, the Fair Trade Advocacy Office and Rainforest Alliance, the Responsible Business Conduct working group recently organised an event at the European Parliament. We invited five smallholder farmers from around the globe to share their experiences and help to answer this question. The invitation to the European Parliament was extended by MEPs Heidi Hautala and Christophe Hansen.
As the Parliament finalises its position on this crucial file, it’s important to re-emphasise the coalition’s key proposals, illustrated by the smallholder farmers present at the European Parliament event. Euractiv
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African and Asian farmers at the European Parliament: only better incomes can drive sustainable value chains
Five farmers' representatives from Africa and Asia spoke at the European Parliament on Thursday 26 January about the coffee, cotton, cocoa and palm oil they produce for the European market. As Brussels sets out rules for companies to protect human rights, nature and the climate, known as corporate sustainability due diligence, their message was strikingly unambiguous: If Europe wants sustainable supply chains, companies must take responsibility for the impact of their purchasing practices and pay farmers better prices. As long as smallholder farmers and workers live in poverty, many of Europe's goals are unachievable.
A living income is a human right
The farmers were invited by MEPs Heidi Hautala (Greens/European Free Alliance) and Christophe Hansen (European People's Party) and four civil society organisations: the Fair Trade Advocacy Office, Fairtrade International, the Rainforest Alliance and Solidaridad. In response to farmers' realities, the organisations set out five recommendations for Brussels: Download full press release
Smallholders from global south take the stage for inclusive CSDDD
The EU is currently developing its potentially ground-breaking Corporate Sustainability Due Diligence Directive (CSDDD). The CSDDD sets out requirements for companies operating in the EU market to conduct human rights and environmental due diligence in their value chains. This ambitious directive has the potential to improve the working conditions and livelihoods of millions of workers and smallholder farmers, and their families.
However, in its current form, the directive fails to take into account the needs of the huge and essential group of smallholders found at the beginning of agricultural value chains worldwide. Smallholder farmers face daily human rights violations while being scapegoats for numerous environmental issues. So how can the CSDDD better equip European companies to work with smallholders to tackle these issues?
In collaboration with Solidaridad, Fairtrade International, the Fair Trade Advocacy Office and Rainforest Alliance, the Responsible Business Conduct working group recently organised an event at the European Parliament. We invited five smallholder farmers from around the globe to share their experiences and help to answer this question. The invitation to the European Parliament was extended by MEPs Heidi Hautala and Christophe Hansen.
As the Parliament finalises its position on this crucial file, it’s important to re-emphasise the coalition’s key proposals, illustrated by the smallholder farmers present at the European Parliament event. Euractiv
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African and Asian farmers at the European Parliament: only better incomes can drive sustainable value chains
Five farmers' representatives from Africa and Asia spoke at the European Parliament on Thursday 26 January about the coffee, cotton, cocoa and palm oil they produce for the European market. As Brussels sets out rules for companies to protect human rights, nature and the climate, known as corporate sustainability due diligence, their message was strikingly unambiguous: If Europe wants sustainable supply chains, companies must take responsibility for the impact of their purchasing practices and pay farmers better prices. As long as smallholder farmers and workers live in poverty, many of Europe's goals are unachievable.
A living income is a human right
The farmers were invited by MEPs Heidi Hautala (Greens/European Free Alliance) and Christophe Hansen (European People's Party) and four civil society organisations: the Fair Trade Advocacy Office, Fairtrade International, the Rainforest Alliance and Solidaridad. In response to farmers' realities, the organisations set out five recommendations for Brussels: Download full press release
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February 2o, 2023
Indonesia suspends two-thirds of palm oil exports ahead of Ramadan and Eid
The Indonesian government has suspended two-thirds of palm oil exports in a bid to secure domestic cooking oil supplies ahead of Ramadan and Eid, according to a report by the United States Department of Agriculture (USDA) report.
The decision was made in response to rising cooking oil prices, the 13 February Foreign Agricultural Service (FAS)’s Global Agricultural Information Network (GAIN) report said.
In February, the government had set a target of increasing domestic cooking oil supplies by 50% to 450,000 tonnes in the run-up to Ramadan and Eid festivities, leading to a projected 400,000-800,000 tonnes of the country’s palm oil exports expected to be blocked from 6 February-1 May.
The country’s coordinating minister for Maritime and Investment Affairs (Marves) Luhut Pandjaitan had announced on 6 February that 66% of palm oil export permits – export permits that had already been issued to companies that complied with the government’s Domestic Market Obligation (DMO) policy – would be suspended with immediate effect until 1 May 2023. OFI
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Indonesia-B35 to Spur 2 Million-Ton Increase in Domestic Palm Oil Demand
Jakarta. The B35 policy -- which increases the palm-oil based biodiesel blend from 30 percent to 35 percent -- could increase domestic demand for palm oil by 2 million tons, an industry executive has said.
“Switching from B30 to B35 will potentially spur a 2 million ton increase in [domestic palm oil] demand,” Santosa, the chief executive officer at the palm oil giant Astra Agro Lestari said at a recent media brief in Salatiga.
According to Santosa, domestic palm oil demand will rise between 3 and 3.5 million tons every time the government increases the biodiesel blend by 10 percent.
“Indonesia is the world’s largest producer and consumer of palm oil, especially now with the B35 mandate,” Santosa said. Jakarta Globe
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China-Quanzhou to procure Malaysian palm oil
DELEGATION from Quanzhou, China recently met with the Malaysian Palm Oil Board (MPOB) to procure palm oil to fulfil China’s demand for peak food production season in the third quarter of this year (3Q23).
The meeting agreed to strengthen cooperation, notably in encouraging supply chain developments for the Malaysian oil palm industry and Fujian food industry, and procurements of palm oil.
Quanzhou is one of the largest production centres for snack food, confectioneries and bakeries, with palm oil being the most important ingredient in the snack food industry in China. The Malaysian Reserve
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Malaysia joins negotiations to upgrade ASEAN-China free trade area
The negotiations to upgrade the ASEAN-China Free Trade Area (ACFTA) will strengthen the existing close ties, at both bilateral and regional levels, according to Malaysia’s Ministry of International Trade and Industry (MITI).
Kuala Lumpur (VNA) - The negotiations to upgrade the ASEAN-China Free Trade Area (ACFTA) will strengthen the existing close ties, at both bilateral and regional levels, according to Malaysia’s Ministry of International Trade and Industry (MITI).
The ministry said the negotiations are expected to be completed within two years.
Malaysia's participation in the ACFTA negotiations is crucial to enhance the cooperation and efforts to make ACFTA more inclusive, updated and comprehensive, it said in a statement on February 18.
MITI said that the inclusion of four new sectors - the digital economy; trade and sustainable development/green economy; competition and consumer protection; and micro, small and medium enterprises - would not only be mutually beneficial to all participating countries, but also demonstrate the importance of maintaining a stable, open and transparent trading environment that would facilitate trade and investment within the region. Vietnam Plus
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Malaysia-Abd Karim: Visit by German president hoped to change misperceptions about Malaysia
KUCHING (Feb 19): It is hoped that the recent visit by President of Germany Frank-Walter Steinmeier to Sarawak would help in changing all the misperceptions associated with Malaysia being the world’s second largest palm oil producer.
This was expressed by Minister for Tourism, Creative Industry and Performing Arts Sarawak Dato Sri Abdul Karim Rahman Hamzah during a press conference, held after a visit to the Creatively Unique (CU) Sarawak 2023 event at Padang Merdeka here yesterday.
“The recent visit (by Steinmeier) should give another perspective about Malaysia, that it does not allow deforestation for oil palm cultivation.
“As you all know, Europe is one of those who have been hitting us hard on palm oil (issue) and all that. At least now, we hope that they would have a different outlook, especially with the Bruno Manser Organisation’s report which I believe, must have placed quite a lot of negative publicity about Sarawak,” he told reporters.
Abdul Karim also expressed hope for the visit to help provide better understanding about Sarawak’s efforts in conserving and preserving its forests. The Borneo Post
----------
Smallholders from global south take the stage for inclusive CSDDD
The EU is currently developing its potentially ground-breaking Corporate Sustainability Due Diligence Directive (CSDDD). The CSDDD sets out requirements for companies operating in the EU market to conduct human rights and environmental due diligence in their value chains. This ambitious directive has the potential to improve the working conditions and livelihoods of millions of workers and smallholder farmers, and their families.
However, in its current form, the directive fails to take into account the needs of the huge and essential group of smallholders found at the beginning of agricultural value chains worldwide. Smallholder farmers face daily human rights violations while being scapegoats for numerous environmental issues. So how can the CSDDD better equip European companies to work with smallholders to tackle these issues?
In collaboration with Solidaridad, Fairtrade International, the Fair Trade Advocacy Office and Rainforest Alliance, the Responsible Business Conduct working group recently organised an event at the European Parliament. We invited five smallholder farmers from around the globe to share their experiences and help to answer this question. The invitation to the European Parliament was extended by MEPs Heidi Hautala and Christophe Hansen. Euractiv
Indonesia suspends two-thirds of palm oil exports ahead of Ramadan and Eid
The Indonesian government has suspended two-thirds of palm oil exports in a bid to secure domestic cooking oil supplies ahead of Ramadan and Eid, according to a report by the United States Department of Agriculture (USDA) report.
The decision was made in response to rising cooking oil prices, the 13 February Foreign Agricultural Service (FAS)’s Global Agricultural Information Network (GAIN) report said.
In February, the government had set a target of increasing domestic cooking oil supplies by 50% to 450,000 tonnes in the run-up to Ramadan and Eid festivities, leading to a projected 400,000-800,000 tonnes of the country’s palm oil exports expected to be blocked from 6 February-1 May.
The country’s coordinating minister for Maritime and Investment Affairs (Marves) Luhut Pandjaitan had announced on 6 February that 66% of palm oil export permits – export permits that had already been issued to companies that complied with the government’s Domestic Market Obligation (DMO) policy – would be suspended with immediate effect until 1 May 2023. OFI
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Indonesia-B35 to Spur 2 Million-Ton Increase in Domestic Palm Oil Demand
Jakarta. The B35 policy -- which increases the palm-oil based biodiesel blend from 30 percent to 35 percent -- could increase domestic demand for palm oil by 2 million tons, an industry executive has said.
“Switching from B30 to B35 will potentially spur a 2 million ton increase in [domestic palm oil] demand,” Santosa, the chief executive officer at the palm oil giant Astra Agro Lestari said at a recent media brief in Salatiga.
According to Santosa, domestic palm oil demand will rise between 3 and 3.5 million tons every time the government increases the biodiesel blend by 10 percent.
“Indonesia is the world’s largest producer and consumer of palm oil, especially now with the B35 mandate,” Santosa said. Jakarta Globe
----------
China-Quanzhou to procure Malaysian palm oil
DELEGATION from Quanzhou, China recently met with the Malaysian Palm Oil Board (MPOB) to procure palm oil to fulfil China’s demand for peak food production season in the third quarter of this year (3Q23).
The meeting agreed to strengthen cooperation, notably in encouraging supply chain developments for the Malaysian oil palm industry and Fujian food industry, and procurements of palm oil.
Quanzhou is one of the largest production centres for snack food, confectioneries and bakeries, with palm oil being the most important ingredient in the snack food industry in China. The Malaysian Reserve
----------
Malaysia joins negotiations to upgrade ASEAN-China free trade area
The negotiations to upgrade the ASEAN-China Free Trade Area (ACFTA) will strengthen the existing close ties, at both bilateral and regional levels, according to Malaysia’s Ministry of International Trade and Industry (MITI).
Kuala Lumpur (VNA) - The negotiations to upgrade the ASEAN-China Free Trade Area (ACFTA) will strengthen the existing close ties, at both bilateral and regional levels, according to Malaysia’s Ministry of International Trade and Industry (MITI).
The ministry said the negotiations are expected to be completed within two years.
Malaysia's participation in the ACFTA negotiations is crucial to enhance the cooperation and efforts to make ACFTA more inclusive, updated and comprehensive, it said in a statement on February 18.
MITI said that the inclusion of four new sectors - the digital economy; trade and sustainable development/green economy; competition and consumer protection; and micro, small and medium enterprises - would not only be mutually beneficial to all participating countries, but also demonstrate the importance of maintaining a stable, open and transparent trading environment that would facilitate trade and investment within the region. Vietnam Plus
----------
Malaysia-Abd Karim: Visit by German president hoped to change misperceptions about Malaysia
KUCHING (Feb 19): It is hoped that the recent visit by President of Germany Frank-Walter Steinmeier to Sarawak would help in changing all the misperceptions associated with Malaysia being the world’s second largest palm oil producer.
This was expressed by Minister for Tourism, Creative Industry and Performing Arts Sarawak Dato Sri Abdul Karim Rahman Hamzah during a press conference, held after a visit to the Creatively Unique (CU) Sarawak 2023 event at Padang Merdeka here yesterday.
“The recent visit (by Steinmeier) should give another perspective about Malaysia, that it does not allow deforestation for oil palm cultivation.
“As you all know, Europe is one of those who have been hitting us hard on palm oil (issue) and all that. At least now, we hope that they would have a different outlook, especially with the Bruno Manser Organisation’s report which I believe, must have placed quite a lot of negative publicity about Sarawak,” he told reporters.
Abdul Karim also expressed hope for the visit to help provide better understanding about Sarawak’s efforts in conserving and preserving its forests. The Borneo Post
----------
Smallholders from global south take the stage for inclusive CSDDD
The EU is currently developing its potentially ground-breaking Corporate Sustainability Due Diligence Directive (CSDDD). The CSDDD sets out requirements for companies operating in the EU market to conduct human rights and environmental due diligence in their value chains. This ambitious directive has the potential to improve the working conditions and livelihoods of millions of workers and smallholder farmers, and their families.
However, in its current form, the directive fails to take into account the needs of the huge and essential group of smallholders found at the beginning of agricultural value chains worldwide. Smallholder farmers face daily human rights violations while being scapegoats for numerous environmental issues. So how can the CSDDD better equip European companies to work with smallholders to tackle these issues?
In collaboration with Solidaridad, Fairtrade International, the Fair Trade Advocacy Office and Rainforest Alliance, the Responsible Business Conduct working group recently organised an event at the European Parliament. We invited five smallholder farmers from around the globe to share their experiences and help to answer this question. The invitation to the European Parliament was extended by MEPs Heidi Hautala and Christophe Hansen. Euractiv
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February 19, 2023
Malaysia-Commodity restrictions: Fadillah asks EU to be more open
KUCHING (Feb 18): The European Union (EU) needs to take a more open attitude over the bloc's restrictions on the entry of certain commodities, said Deputy Prime Minister Datuk Seri Fadillah Yusof.
Fadillah, who is also the plantation and commodities minister, said this is because Malaysia and the EU share the same commitment to ensuring aspects of sustainability are taken into account in the production of commodities.
"Our commitment and theirs are the same, but maybe our approach is different.
"We expect what we have implemented to be adopted and recognised by the EU. That's what we want to say to them," he said. The Edge Markets
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Egypt, Malaysia to discuss investment opportunities in palm oil
Egypt seeks to benefit from Malaysian experience in palm oil manufacturing, says Trade Minister
Minister of Trade and Industry Ahmed Samir has met with a delegation of one of the largest Malaysian companies, which is currently visiting Egypt, to discuss investment opportunities in the field of palm oil.
Samir noted that the Malaysian company could benefit from the trade advantages of the African Continental Free Trade Agreement, foremost of which is the exemption from custom duties.
He highlighted the ministry’s keenness to benefit from the great Malaysian expertise and technologies in palm oil production and its transfer to the Egyptian industry, so that Egypt would be a hub for manufacturing this promising product and exporting it to neighbouring markets.
He elaborated that the ministry is fully prepared to provide all means of support for the company to start its business in the Egyptian market and benefit from investment incentives offered by the Egyptian government to foreign investors.
For its part, the delegation explained that the company is one of the largest Malaysian companies in the production and refining of palm oil inside and outside Malaysia. Daily News Egypt
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Pakistan-China cooperation to bolster agri yield
Islamabad : The agriculture cooperation under China-Pakistan Economic Corridor (CPEC) will increase Pakistan’s edible oil production and save foreign exchange reserves.
The project will increase the country’s unit output and reduce import bills. Mills can get better milling yield and consumers can get healthy edible oil, said Zhou Xusheng, Director of International Department, Wuhan Qingfa Hesheng Seed Company, in an interview with Gwadar Pro. Comparing with other existing brassica napus canola varieties in Pakistan, he said that canola variety HC-021C of a Chinese seed company blooming in Pakistan has a shorter growth period, making it suitable to match with local farmers’ sowing habits. In addition, HC-021C is proven to show higher disease resistance and is suitable for high density planting.
Given these great characteristics, HC-021C has a higher yield, 5% higher than other local varieties per unit. Underlining the benefits of HC-021C in Pakistan, Zhou said that the Punjab government gives a Rs5,000 package to HC-021C as it has better oil rape seed colour. Farmers can get Rs500/40kgs more than raya/mustard, therefore HC-021C can get a better income. The News PK
Malaysia-Commodity restrictions: Fadillah asks EU to be more open
KUCHING (Feb 18): The European Union (EU) needs to take a more open attitude over the bloc's restrictions on the entry of certain commodities, said Deputy Prime Minister Datuk Seri Fadillah Yusof.
Fadillah, who is also the plantation and commodities minister, said this is because Malaysia and the EU share the same commitment to ensuring aspects of sustainability are taken into account in the production of commodities.
"Our commitment and theirs are the same, but maybe our approach is different.
"We expect what we have implemented to be adopted and recognised by the EU. That's what we want to say to them," he said. The Edge Markets
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Egypt, Malaysia to discuss investment opportunities in palm oil
Egypt seeks to benefit from Malaysian experience in palm oil manufacturing, says Trade Minister
Minister of Trade and Industry Ahmed Samir has met with a delegation of one of the largest Malaysian companies, which is currently visiting Egypt, to discuss investment opportunities in the field of palm oil.
Samir noted that the Malaysian company could benefit from the trade advantages of the African Continental Free Trade Agreement, foremost of which is the exemption from custom duties.
He highlighted the ministry’s keenness to benefit from the great Malaysian expertise and technologies in palm oil production and its transfer to the Egyptian industry, so that Egypt would be a hub for manufacturing this promising product and exporting it to neighbouring markets.
He elaborated that the ministry is fully prepared to provide all means of support for the company to start its business in the Egyptian market and benefit from investment incentives offered by the Egyptian government to foreign investors.
For its part, the delegation explained that the company is one of the largest Malaysian companies in the production and refining of palm oil inside and outside Malaysia. Daily News Egypt
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Pakistan-China cooperation to bolster agri yield
Islamabad : The agriculture cooperation under China-Pakistan Economic Corridor (CPEC) will increase Pakistan’s edible oil production and save foreign exchange reserves.
The project will increase the country’s unit output and reduce import bills. Mills can get better milling yield and consumers can get healthy edible oil, said Zhou Xusheng, Director of International Department, Wuhan Qingfa Hesheng Seed Company, in an interview with Gwadar Pro. Comparing with other existing brassica napus canola varieties in Pakistan, he said that canola variety HC-021C of a Chinese seed company blooming in Pakistan has a shorter growth period, making it suitable to match with local farmers’ sowing habits. In addition, HC-021C is proven to show higher disease resistance and is suitable for high density planting.
Given these great characteristics, HC-021C has a higher yield, 5% higher than other local varieties per unit. Underlining the benefits of HC-021C in Pakistan, Zhou said that the Punjab government gives a Rs5,000 package to HC-021C as it has better oil rape seed colour. Farmers can get Rs500/40kgs more than raya/mustard, therefore HC-021C can get a better income. The News PK
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February 18, 2023
Malaysia-Media Coverage of Prime Minister Anwar Ibrahim's press statement, after meeting with German President Frank-Walter Steinmeier
Free Malaysia Today-Don’t be so rigid about palm oil, Anwar tells EU
The prime minister says an EU rule about deforestation is unjust and affects Malaysia’s economy.
PUTRAJAYA: Prime Minister Anwar Ibrahim has appealed to the European Union (EU) to “not be so rigid” with a deforestation rule that has acted as a sanction against Malaysia’s palm oil exports.
Anwar said it had since been a challenge to export palm oil products to Europe “because of sanctions imposed on us”.
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The StarMY-‘Rethink palm oil export sanctions’
PUTRAJAYA: The European Union (EU) should do justice to economies by allowing them to function after necessary measures have been taken to ensure that their oil palm plantations are sustainable, says the Prime Minister.
Datuk Seri Anwar Ibrahim said Asean, including Malaysia, had encountered difficulties with the EU pertaining to palm oil exports due to the sanctions imposed.
He said as the world’s second largest palm oil producer, Malaysia was deeply concerned over the implementation of the EU deforestation-free products regulation and he had raised those concerns during discussions with visiting German President Frank-Walter Steinmeier.
“We have taken all necessary measures and carried out reforestation, including in peat soil areas. They (the EU) should do justice to this region.
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Malay Mail-PM Anwar says Malaysia targeting to supply more palm oil to Germany, urges EU not to be rigid with regulations
Prime Minister Datuk Seri Anwar Ibrahim hopes the European Union (EU) will not be too rigid with its regulations imposed on Malaysian export commodities, especially palm oil products.
As the second largest palm oil producer in the world, Anwar said that Malaysia is deeply concerned over the EU Deforestation-Free Products Regulation (EUDR) implementation.
He said that Malaysia is keen to export more sustainable palm oil to Germany and hopes that palm oil will be the new top commodity export to Germany.
"So EUDR should be reviewed together (with Germany) so that any attempt to protect the environment and focus on renewable energy would not be at the expense of our economy,” he said in a joint press conference with German President Frank-Walter Steinmeier.
He said that the regulation did not only affect palm oil products, but also others like timber, cocoa, and rubber.
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Indonesia-Musim Mas Reported on Birds in Palm Oil Plantations
Musim Mas' plantations operate in Indonesia, home to a diverse range of flora and fauna. As a leading sustainable palm oil corporation, Musim Mas believes that biodiversity can co-exist with its responsible business operations.
Musim Mas' conservation effort includes forest stewardship, riparian buffer restoration, and active monitoring of wildlife and other environmental indicators within both HCV areas and the surrounding land concessions.
The group has also undertaken a major study to assess its interventions for effectiveness, such as whether its efforts to preserve and enhance biodiversity in the plantations have been effective, as well as ways to improve its efforts. This was done by providing 12 years of biodiversity data accumulated by Musim Mas' sustainability team, for a study by the UK-based South East Asia Rainforest Research Partnership (SEARRP). Access Wire
Malaysia-Media Coverage of Prime Minister Anwar Ibrahim's press statement, after meeting with German President Frank-Walter Steinmeier
Free Malaysia Today-Don’t be so rigid about palm oil, Anwar tells EU
The prime minister says an EU rule about deforestation is unjust and affects Malaysia’s economy.
PUTRAJAYA: Prime Minister Anwar Ibrahim has appealed to the European Union (EU) to “not be so rigid” with a deforestation rule that has acted as a sanction against Malaysia’s palm oil exports.
Anwar said it had since been a challenge to export palm oil products to Europe “because of sanctions imposed on us”.
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The StarMY-‘Rethink palm oil export sanctions’
PUTRAJAYA: The European Union (EU) should do justice to economies by allowing them to function after necessary measures have been taken to ensure that their oil palm plantations are sustainable, says the Prime Minister.
Datuk Seri Anwar Ibrahim said Asean, including Malaysia, had encountered difficulties with the EU pertaining to palm oil exports due to the sanctions imposed.
He said as the world’s second largest palm oil producer, Malaysia was deeply concerned over the implementation of the EU deforestation-free products regulation and he had raised those concerns during discussions with visiting German President Frank-Walter Steinmeier.
“We have taken all necessary measures and carried out reforestation, including in peat soil areas. They (the EU) should do justice to this region.
----------
Malay Mail-PM Anwar says Malaysia targeting to supply more palm oil to Germany, urges EU not to be rigid with regulations
Prime Minister Datuk Seri Anwar Ibrahim hopes the European Union (EU) will not be too rigid with its regulations imposed on Malaysian export commodities, especially palm oil products.
As the second largest palm oil producer in the world, Anwar said that Malaysia is deeply concerned over the EU Deforestation-Free Products Regulation (EUDR) implementation.
He said that Malaysia is keen to export more sustainable palm oil to Germany and hopes that palm oil will be the new top commodity export to Germany.
"So EUDR should be reviewed together (with Germany) so that any attempt to protect the environment and focus on renewable energy would not be at the expense of our economy,” he said in a joint press conference with German President Frank-Walter Steinmeier.
He said that the regulation did not only affect palm oil products, but also others like timber, cocoa, and rubber.
----------
Indonesia-Musim Mas Reported on Birds in Palm Oil Plantations
Musim Mas' plantations operate in Indonesia, home to a diverse range of flora and fauna. As a leading sustainable palm oil corporation, Musim Mas believes that biodiversity can co-exist with its responsible business operations.
Musim Mas' conservation effort includes forest stewardship, riparian buffer restoration, and active monitoring of wildlife and other environmental indicators within both HCV areas and the surrounding land concessions.
The group has also undertaken a major study to assess its interventions for effectiveness, such as whether its efforts to preserve and enhance biodiversity in the plantations have been effective, as well as ways to improve its efforts. This was done by providing 12 years of biodiversity data accumulated by Musim Mas' sustainability team, for a study by the UK-based South East Asia Rainforest Research Partnership (SEARRP). Access Wire
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February 17, 2023
Malaysian PM calls for review of EU Deforestation-Regulations Following Meeting with German President Steinmeier
PUTRAJAYA: Prime Minister Datuk Seri Anwar Ibrahim today called for the European Union Deforestation-free Regulation (EUDR) to be reviewed as the regulation presents complexity and challenges to the palm oil industry.
In a joint press conference with visiting German President Frank-Walter Steinmeier at Perdana Putra here today, Anwar said Malaysia has encountered some difficulties in a series of negotiations with the EU to discuss the matter.
“To do justice to this region, we have taken all the necessary measures, reforestation, including the peat soil areas, therefore they should allow us to function economically and not be so rigid,” he said.
The EU enacted the EUDR on Dec 6, 2022. The regulation has called for all relevant companies to abide by mandatory due diligence rules if they place their products on the EU market.
Companies are also required to prove that their products are deforestation-free and present precise geographical information on where the commodities are sourced.
Anwar stressed that Malaysia is committed to climate change issues and has been expressing this through understanding and negotiations.
Meanwhile, Anwar said Petroliam Nasional Bhd (Petronas) had expressed interest in expanding its export of liquefied natural gas (LNG) to Germany. Bernama
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Can ASEAN benefit from the EU's green agriculture push?
The EU wants to champion "green agriculture" in Southeast Asia. But limited trade relations, regulatory nightmares and distrust could stymie it.
As manufacturing and tourism collapsed in the three years of the COVID-19 pandemic, several Southeast Asian governments realized that they needed to pump more money into their underfunded and underappreciated agriculture sector. That's now paying off.
The sector in Cambodia grew by around 6% over each of the past two years compared to 2019, according to government data.
Last year, Vietnam's agriculture exports climbed by 9.3% to a new record value of more than €49 billion ($52.3 billion).
Despite the healthy growth in the sector, there are concerns. It is a key contributor to climate change in the region. The World Bank estimates that agriculture accounted for 19% of Vietnam's total greenhouse gas emissions in 2020, the second-highest of any sector.
And export markets remain rather condensed. China, for instance, purchased around half of all agricultural exports from Cambodia, and around a quarter of Thailand's, last year. DW
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China-Quanzhou deputy mayor calls for Malaysian palm oil producers, traders to expand to the city
KUALA LUMPUR: A delegation from the city of Quanzhou, Fujian, in China, has called on Malaysian palm oil producers and traders to expand business contacts with the city.
In a statement today, the Malaysian Palm Oil Board (MPOB) said the entourage, including representatives from nine Chinese main food producers in Fujian province, led by Quanzhou deputy mayor Wang Zhihong, visited the headquarters of the Malaysian Palm Oil Board (MPOB) and met with its director-general, Datuk Ahmad Parveez Ghulam Kadir, in his office here today.
"The meeting was also attended by Malaysian and Chinese industry members interested in food manufacturing and palm oil trade," it said.
Quanzhou is one of the largest production centres for snack food, confectioneries and bakeries, and it is also the main destination for palm oil exports in China. New Straits Times
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India-One more palm oil crushing unit at Khammam soon
State government takes up construction of processing unit with a capacity of 25 tonnes at Kallurigudem TS Cooperative Oil Seeds Growers Federation to spend over Rs 100 crore for setting up the factory The authorities have already acquired the land and construction works have commenced
Khammam: In a bid to encourage farmers towards cultivating palm oil plantation to get more income as compared to other commercial crops, the State government is constructing one more palm oil crushing unit with a capacity of 25 tonnes at Kallurigudem village under the Vemsoor mandal of the distrcit. The Telangana State Cooperative Oil Seeds Growers Federation (TS OilFed) is spending over Rs 100 crore for the construction of the crushing unit. The land for the construction of the unit has been acquired and construction works had already begun. The Hans India
Malaysian PM calls for review of EU Deforestation-Regulations Following Meeting with German President Steinmeier
PUTRAJAYA: Prime Minister Datuk Seri Anwar Ibrahim today called for the European Union Deforestation-free Regulation (EUDR) to be reviewed as the regulation presents complexity and challenges to the palm oil industry.
In a joint press conference with visiting German President Frank-Walter Steinmeier at Perdana Putra here today, Anwar said Malaysia has encountered some difficulties in a series of negotiations with the EU to discuss the matter.
“To do justice to this region, we have taken all the necessary measures, reforestation, including the peat soil areas, therefore they should allow us to function economically and not be so rigid,” he said.
The EU enacted the EUDR on Dec 6, 2022. The regulation has called for all relevant companies to abide by mandatory due diligence rules if they place their products on the EU market.
Companies are also required to prove that their products are deforestation-free and present precise geographical information on where the commodities are sourced.
Anwar stressed that Malaysia is committed to climate change issues and has been expressing this through understanding and negotiations.
Meanwhile, Anwar said Petroliam Nasional Bhd (Petronas) had expressed interest in expanding its export of liquefied natural gas (LNG) to Germany. Bernama
---------
Can ASEAN benefit from the EU's green agriculture push?
The EU wants to champion "green agriculture" in Southeast Asia. But limited trade relations, regulatory nightmares and distrust could stymie it.
As manufacturing and tourism collapsed in the three years of the COVID-19 pandemic, several Southeast Asian governments realized that they needed to pump more money into their underfunded and underappreciated agriculture sector. That's now paying off.
The sector in Cambodia grew by around 6% over each of the past two years compared to 2019, according to government data.
Last year, Vietnam's agriculture exports climbed by 9.3% to a new record value of more than €49 billion ($52.3 billion).
Despite the healthy growth in the sector, there are concerns. It is a key contributor to climate change in the region. The World Bank estimates that agriculture accounted for 19% of Vietnam's total greenhouse gas emissions in 2020, the second-highest of any sector.
And export markets remain rather condensed. China, for instance, purchased around half of all agricultural exports from Cambodia, and around a quarter of Thailand's, last year. DW
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China-Quanzhou deputy mayor calls for Malaysian palm oil producers, traders to expand to the city
KUALA LUMPUR: A delegation from the city of Quanzhou, Fujian, in China, has called on Malaysian palm oil producers and traders to expand business contacts with the city.
In a statement today, the Malaysian Palm Oil Board (MPOB) said the entourage, including representatives from nine Chinese main food producers in Fujian province, led by Quanzhou deputy mayor Wang Zhihong, visited the headquarters of the Malaysian Palm Oil Board (MPOB) and met with its director-general, Datuk Ahmad Parveez Ghulam Kadir, in his office here today.
"The meeting was also attended by Malaysian and Chinese industry members interested in food manufacturing and palm oil trade," it said.
Quanzhou is one of the largest production centres for snack food, confectioneries and bakeries, and it is also the main destination for palm oil exports in China. New Straits Times
----------
India-One more palm oil crushing unit at Khammam soon
State government takes up construction of processing unit with a capacity of 25 tonnes at Kallurigudem TS Cooperative Oil Seeds Growers Federation to spend over Rs 100 crore for setting up the factory The authorities have already acquired the land and construction works have commenced
Khammam: In a bid to encourage farmers towards cultivating palm oil plantation to get more income as compared to other commercial crops, the State government is constructing one more palm oil crushing unit with a capacity of 25 tonnes at Kallurigudem village under the Vemsoor mandal of the distrcit. The Telangana State Cooperative Oil Seeds Growers Federation (TS OilFed) is spending over Rs 100 crore for the construction of the crushing unit. The land for the construction of the unit has been acquired and construction works had already begun. The Hans India
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February 16, 2023
India-Deluge of edible oil imports hits refiners
Shipments into the country surge 31.3% during Nov-Jan with RBD palmolein consignments trebling
Import of edible oils witnessed a 31.56 per cent growth in the first quarter of the oil year 2022-23 (November to October) following a surge in the import of soft oils such as sunflower oil and soyabean oil.
Data from the Solvent Extractors’ Association (SEA) of India revealed that India imported 47.46 lakh tonnes (lt) of edible oils from November to January of the current oil year 2022-23, against 36.07 lt in the same period a year ago. The Hindu Businessline
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OPINION-Indonesia Palm Oil in Indian Market: Sustainable and Reliable
JAKARTA, Jan 17, 2023 - (ACN Newswire) - Over the past two years global vegetable oil markets have been upended by supply chain disruptions from COVID and the Russia-Ukraine conflict.
However, as commodity markets begin to settle into a 'new normal', it is apparent that the fundamentals of the market are returning. There are three key factors that will impact the market for suppliers and purchasers. They are: sustainability and certification; growth of the Indian market; and government policies that will facilitate trade between India and Indonesia.
Sustainability has been a driving force of the debate around palm oil in Western markets. However, that debate has been narrow, and focused almost entirely on deforestation. But properly understood, and for developing countries and emerging economies such as India and Indonesia, sustainability is broader in scope, encompassing social and economic concerns. These are encapsulated in the UN Sustainable Development Goals.
For producing and exporting countries, oil palm harvesting aligns with many of the SDGs, including providing stable food supply, employment, poverty reduction, and improved health outcomes.
At the same time, importing countries enjoy the benefit of a vegetable oil that is affordable, and contributes to reducing hunger and ensuring low-cost food at a time when global prices are high.
There is an additional facet to sustainability: sustainability certification. Indonesian Sustainable Palm Oil (ISPO) is Indonesia's mandatory certification system. It's an assurance for purchasers that palm oil has been produced according to Indonesia's laws and regulations. This includes: adherence to Indonesia's laws on forests and deforestation, which have seen a drop in deforestation rates to their lowest on record; adherence to international norms on labour, including minimum pay and conditions, and prohibitions on child and slave labour; and support for local communities.
Unlike voluntary certification systems, ISPO is mandatory for all oil palm growers, whether smallholders or large plantation owners. It gives a greater assurance to Indian purchasers that all Indonesian palm oil is sustainable and supports sustainable development.
This is particularly significant as the Indian market for vegetable oil - and palm oil - grows. India imports around 60% of all its vegetable oil. These imports are split across palm oil [60%], and soybean oil and sunflower [40%]. India is already the world's [largest] importer of palm oil, representing 18% of the global palm oil trade. Benzinga
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EcoCeres to build second biofuel plant utilising used cooking oil and palm oil mill wastewater
Hong Kong start-up EcoCeres has announced plans to build a second plant to turn waste oil into low-carbon fuel for aircraft and cars, the South China Morning Post (SCMP) reported.
Expected to take about two years to complete, the proposed plant in Johor Bahru, Malaysia, would produce around 350,000 tonnes/year of low-carbon transportation fuel from UCO and palm oil mill wastewater, the 2 February report said.
“Now that our first plant in China is performing well, we are designing our second plant in Malaysia, which will soon proceed to the construction phase,” EcoCeres co-founder and CEO Philip Siu Kam-shing told the SCMP.
EcoCeres, a business unit of local energy supplier Hong Kong and China Gas (Towngas), operates a waste-oil processing plant in Zhangjiagang, Jiangsu province, which produces 100,000 tonnes/year of SAF and 200,000 tonnes/year of renewable diesel fuel. The plant, which started commercial operation in early 2021, delivered all of its current production to the European market, the SCMP wrote. OFI
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February 15, 2023
Many companies and finance firms yet to set deforestation policy - report
Analysis by non-profit Global Canopy of 350 companies with the greatest exposure to palm oil, soy, beef, leather, timber and pulp and paper, and 150 banks and asset managers which lend to or invest in them, showed 201, or 40%, had no such policy.
Its annual "Forest 500" report comes just weeks after a global deal was struck by governments to protect biodiversity, and as policymakers in the European Union and Britain plan tougher rules to force companies to do more to stamp deforestation out. Reuters
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Major firms not doing enough to curb deforestation: report
Many major global firms and financial institutions that directly or indirectly contribute to deforestation do not have any policies in place to protect forests, increasing the risk for catastrophic nature loss, a report said Wednesday (15 February).
The report comes just months after countries reached a historic agreement to protect 30% of the world’s land and seas by 2030 at UN biodiversity talks late last year.
At the same time, incoming legislation for the European Union and the United Kingdom will tighten rules around trading commodities associated with deforestation.
But new analysis Wednesday showed that hundreds of firms still have not set a single policy on deforestation despite these high-level commitments. EURACTIV
----------
How EU Wants to Stop Deforestation in Your Coffee
The European Union is set to ban imports of raw materials produced on newly deforested land anywhere in the world, in an effort to protect the rainforests that are a buffer against catastrophic climate change. The new rules require sophisticated tracking systems and will be enforced using the threat of fines. Critics say the measures will penalize millions of small farmers across Asia, Latin America and Africa who lack the means to comply.
1. What’s going to happen?
The plan is to stop the felling of forests to grow products sold in Europe. Those include palm oil (which is found in thousands of everyday items including ice cream, shampoo and fuel), soy, beef, wood, rubber, cocoa and coffee and some manufactured products such as chocolate, leather and furniture. To send them into the EU or export them from the bloc, companies must show they weren’t made on land that was deforested or degraded since Dec. 31, 2020. They will also need to prove they were produced in compliance with local human rights laws and laws protecting the rights of indigenous peoples. The measures are expected to take effect in May or June. Companies will then have 18 months to comply, with a further six-month grace period for small businesses. Washington Post
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Malaysia-Plantation conglomerates accelerating agriculture sector’s growth nationwide
LARGE-SCALE commercial use of lands to secure continuous supply of raw materials has driven leading plantation companies in the country to evolve into conglomerates.
Under the Plantation and Commodity Ministry(MPIC), the country’s main commodities in the plantation sector include palm oil, rubber, timber, cocoa, pepper, kenaf and tobacco.
Vital to the agricultural sector and Malaysia’s economy, the role of plantation industry players is critical in sustaining the country’s dominance in the global market, especially in palm oil production.
Based on MPIC data, palm oil export revenue for 2022 was expected to grow by 11.8% to RM72.25 billion from RM64.62 billion recorded in 2021, while crude palm oil (CPO) prices were projected to average at RM4,250 per tonne with 19 million tonnes of production.
Below is a list of prominent names in the plantation industry. The Malaysian Reserve
India-Deluge of edible oil imports hits refiners
Shipments into the country surge 31.3% during Nov-Jan with RBD palmolein consignments trebling
Import of edible oils witnessed a 31.56 per cent growth in the first quarter of the oil year 2022-23 (November to October) following a surge in the import of soft oils such as sunflower oil and soyabean oil.
Data from the Solvent Extractors’ Association (SEA) of India revealed that India imported 47.46 lakh tonnes (lt) of edible oils from November to January of the current oil year 2022-23, against 36.07 lt in the same period a year ago. The Hindu Businessline
-----------
OPINION-Indonesia Palm Oil in Indian Market: Sustainable and Reliable
JAKARTA, Jan 17, 2023 - (ACN Newswire) - Over the past two years global vegetable oil markets have been upended by supply chain disruptions from COVID and the Russia-Ukraine conflict.
However, as commodity markets begin to settle into a 'new normal', it is apparent that the fundamentals of the market are returning. There are three key factors that will impact the market for suppliers and purchasers. They are: sustainability and certification; growth of the Indian market; and government policies that will facilitate trade between India and Indonesia.
Sustainability has been a driving force of the debate around palm oil in Western markets. However, that debate has been narrow, and focused almost entirely on deforestation. But properly understood, and for developing countries and emerging economies such as India and Indonesia, sustainability is broader in scope, encompassing social and economic concerns. These are encapsulated in the UN Sustainable Development Goals.
For producing and exporting countries, oil palm harvesting aligns with many of the SDGs, including providing stable food supply, employment, poverty reduction, and improved health outcomes.
At the same time, importing countries enjoy the benefit of a vegetable oil that is affordable, and contributes to reducing hunger and ensuring low-cost food at a time when global prices are high.
There is an additional facet to sustainability: sustainability certification. Indonesian Sustainable Palm Oil (ISPO) is Indonesia's mandatory certification system. It's an assurance for purchasers that palm oil has been produced according to Indonesia's laws and regulations. This includes: adherence to Indonesia's laws on forests and deforestation, which have seen a drop in deforestation rates to their lowest on record; adherence to international norms on labour, including minimum pay and conditions, and prohibitions on child and slave labour; and support for local communities.
Unlike voluntary certification systems, ISPO is mandatory for all oil palm growers, whether smallholders or large plantation owners. It gives a greater assurance to Indian purchasers that all Indonesian palm oil is sustainable and supports sustainable development.
This is particularly significant as the Indian market for vegetable oil - and palm oil - grows. India imports around 60% of all its vegetable oil. These imports are split across palm oil [60%], and soybean oil and sunflower [40%]. India is already the world's [largest] importer of palm oil, representing 18% of the global palm oil trade. Benzinga
-----------
EcoCeres to build second biofuel plant utilising used cooking oil and palm oil mill wastewater
Hong Kong start-up EcoCeres has announced plans to build a second plant to turn waste oil into low-carbon fuel for aircraft and cars, the South China Morning Post (SCMP) reported.
Expected to take about two years to complete, the proposed plant in Johor Bahru, Malaysia, would produce around 350,000 tonnes/year of low-carbon transportation fuel from UCO and palm oil mill wastewater, the 2 February report said.
“Now that our first plant in China is performing well, we are designing our second plant in Malaysia, which will soon proceed to the construction phase,” EcoCeres co-founder and CEO Philip Siu Kam-shing told the SCMP.
EcoCeres, a business unit of local energy supplier Hong Kong and China Gas (Towngas), operates a waste-oil processing plant in Zhangjiagang, Jiangsu province, which produces 100,000 tonnes/year of SAF and 200,000 tonnes/year of renewable diesel fuel. The plant, which started commercial operation in early 2021, delivered all of its current production to the European market, the SCMP wrote. OFI
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February 15, 2023
Many companies and finance firms yet to set deforestation policy - report
- Forty percent of Forest 500 companies yet to set a policy
- Report comes as EU, Britain set tougher rules
- Ending deforestation key to climate fight - NGO
Analysis by non-profit Global Canopy of 350 companies with the greatest exposure to palm oil, soy, beef, leather, timber and pulp and paper, and 150 banks and asset managers which lend to or invest in them, showed 201, or 40%, had no such policy.
Its annual "Forest 500" report comes just weeks after a global deal was struck by governments to protect biodiversity, and as policymakers in the European Union and Britain plan tougher rules to force companies to do more to stamp deforestation out. Reuters
----------
Major firms not doing enough to curb deforestation: report
Many major global firms and financial institutions that directly or indirectly contribute to deforestation do not have any policies in place to protect forests, increasing the risk for catastrophic nature loss, a report said Wednesday (15 February).
The report comes just months after countries reached a historic agreement to protect 30% of the world’s land and seas by 2030 at UN biodiversity talks late last year.
At the same time, incoming legislation for the European Union and the United Kingdom will tighten rules around trading commodities associated with deforestation.
But new analysis Wednesday showed that hundreds of firms still have not set a single policy on deforestation despite these high-level commitments. EURACTIV
----------
How EU Wants to Stop Deforestation in Your Coffee
The European Union is set to ban imports of raw materials produced on newly deforested land anywhere in the world, in an effort to protect the rainforests that are a buffer against catastrophic climate change. The new rules require sophisticated tracking systems and will be enforced using the threat of fines. Critics say the measures will penalize millions of small farmers across Asia, Latin America and Africa who lack the means to comply.
1. What’s going to happen?
The plan is to stop the felling of forests to grow products sold in Europe. Those include palm oil (which is found in thousands of everyday items including ice cream, shampoo and fuel), soy, beef, wood, rubber, cocoa and coffee and some manufactured products such as chocolate, leather and furniture. To send them into the EU or export them from the bloc, companies must show they weren’t made on land that was deforested or degraded since Dec. 31, 2020. They will also need to prove they were produced in compliance with local human rights laws and laws protecting the rights of indigenous peoples. The measures are expected to take effect in May or June. Companies will then have 18 months to comply, with a further six-month grace period for small businesses. Washington Post
----------
Malaysia-Plantation conglomerates accelerating agriculture sector’s growth nationwide
LARGE-SCALE commercial use of lands to secure continuous supply of raw materials has driven leading plantation companies in the country to evolve into conglomerates.
Under the Plantation and Commodity Ministry(MPIC), the country’s main commodities in the plantation sector include palm oil, rubber, timber, cocoa, pepper, kenaf and tobacco.
Vital to the agricultural sector and Malaysia’s economy, the role of plantation industry players is critical in sustaining the country’s dominance in the global market, especially in palm oil production.
Based on MPIC data, palm oil export revenue for 2022 was expected to grow by 11.8% to RM72.25 billion from RM64.62 billion recorded in 2021, while crude palm oil (CPO) prices were projected to average at RM4,250 per tonne with 19 million tonnes of production.
Below is a list of prominent names in the plantation industry. The Malaysian Reserve
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February 14, 2023
OPINION The EU’s quest to save the world’s forests
Thanks to a huge outcry from Europeans and close collaboration between all political parties in the Parliament, the bloc now leads the way in developing standards for the protection of forests around the globe
The destruction of our forests has serious consequences for the environment, as deforestation and forest degradation are responsible for 11 per cent of greenhouse gases. Further, deforestation ruins the livelihoods of vulnerable indigenous communities who depend on the forest ecosystem.
If we do not tackle deforestation, all other efforts to fight climate change and biodiversity loss on an EU level are nothing but a drop in the ocean.
The impact of deforestation on nature and society sparked a huge outcry from EU citizens. The Public Consultation launched by the Commission received more than 1.2m responses, making it the second most popular in the history of the EU. The Parliament Magazine
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Malaysia-A century of resilient palm oil industry
FROM a humble start over a century ago, Malaysia is now the second-largest producer of palm oil and a major exporter globally.
Oil palm was first introduced to Malaya as a commercial plant sometime between 1916 and 1917 at the Tennamaran Estate in Selangor.
According to a journal titled “Malaysia: 100 Years of Resilient Palm Oil Economic Performance”, the oil palm plantation area had blossomed from 55,000ha to 5.74 million ha in a span of 60 years.
In line with the area expansion, the production of palm oil grew tremendously from less than 100,000 tonnes in the early 1960s to approximately 17.32 million tonnes in 2016.
The cultivation of oil palm increased at a fast pace in early 1960s under the government’s agricultural diversification programme, which was introduced to reduce the country’s economic dependence on rubber and tin.
Additionally, around the same time, the government introduced land settlement schemes for planting oil palm to eradicate poverty for the landless farmers and smallholders.
Further down the road, the industry directly employed more than 570,000 workers by 2020, and contributed US$21.09 billion (RM90.9 billion) to Malaysia’s exports. The Malaysian Reserve
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Liberia: Maryland Oil Palm Plantation Accused of land-grab, Rights Violations
— SDI’s damning investigation unearths MOPP's alleged shady deeds in Maryland County
The Maryland Oil Palm Plantation (MOPP), one of the largest palm oil companies in the country, has been accused of a wide range of land-grabbing allegations, violating human rights, and exploiting labor in Sodoken district, Maryland County.
Local communities, including Barraken and Hudukudi, accused the company of not respecting their customary land rights, intimidating and acting in ways that encourage conflicts among residents.
In a damning investigative report released over the weekend by Sustainable Development Institute (SDI), MOPP is accused of forcing locals off their lands, labor exploitation, destruction of tropical forest, and polluting local populations’ water sources among others.
“MOPP operated on former Decoris plantation land, but when that was not enough they also moved into former Libsuco plantations and community land,” the report says. “MOPP cleared forests, sacred places and cultivation sites or bush. The area between Barraken and Hudukudi was previously forest, not plantation.”
The report also indicated that “near Old Sodoken, Pedebo and Kaken communities claim that forest and farmland was cleared.” Liberian Observer
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Liberia-The Farmer Defending His Land Against A Palm Plantation
PLEEBO, Maryland County – One day in 2016 policemen arrested Saturday Wilson at his farm. Wilson had been accused by the Maryland Oil Palm Plantation (MOPP) of stealing fertilizers, a court document shows.
Wilson spent two days in a police cell and after a relatively short case, the Pleebo Magisterial Court sentenced him to three and a half months in prison. It said he prevented the company from clearing the land the government had leased to it.
“I told [the judge], ‘For me, I am not embarrassing the concession but that is my land,’” Wilson tells The DayLight at his home in Gewloken in the Gbolobo Chiefdom of Pleebo Sodoken District.
“I will serve my sentence but when I come, the land will remain there. I will meet it there. It will still be for me.”
That was not Wilson’s first ordeal with MOPP, and not his last either. In the last 13 years, the 47-year-old farmer has been embroiled in a battle with the company over his farmland. It has placed him behind bars three times. However, he still owns the land. The Daylight
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Wilmar and Financiers Exposed to Conflict Palm oil in Liberia
Amsterdam and Duazon: Sustainable Development Institute (SDI) Liberia and Milieudefensie expose the ongoing social and environmental harms in Maryland Oil Palm Plantation (MOPP) in Liberia. Over the past years, two research missions and local forest monitors documented severe cases of criminalisation of community members, intimidation and violence, land grabbing, pollution and destruction of valuable nature.
Community testimonies and related documents paint a bleak picture of life and work in the plantation area. Several communities have resisted the expansion of the plantion on their customary lands ever since MOPP entered the area in 2011. Community land was taken without consent. But their resistance is met with violence and intimidation. Community members testify that intimidation and violence has increased over the past year. People are afraid, especially those that have the courage to speak up.
MOPP is situated in the county of Maryland close to the border with Ivory Coast. It is owned by SIFCA, a leading Ivorian Agribusiness group. Wilmar owns part of this group and its refinery, where MOPP products are refined. Wilmar is one of the largest Agri-businesses in the world. The African, French and Dutch development banks invested in SIFCA and a range of Asian,UK, US and French financiers are exposed to the harms on the MOPP plantations through their financing of Wilmar.
James Otto, programme manager at SDI, says ‘Communities have the right to a formal and legally binding agreement with the company on the use of their lands. MOPP urgently needs to start negotiating and listening to communities, agree on terms and conditions of a lease, provide loss and damages and give back land to communities where requested. The government of Liberia has to make sure that companies like MOPP are not flouting the rules and comply with the Land Rights Act of Liberia.’ GNN Liberia
OPINION The EU’s quest to save the world’s forests
Thanks to a huge outcry from Europeans and close collaboration between all political parties in the Parliament, the bloc now leads the way in developing standards for the protection of forests around the globe
The destruction of our forests has serious consequences for the environment, as deforestation and forest degradation are responsible for 11 per cent of greenhouse gases. Further, deforestation ruins the livelihoods of vulnerable indigenous communities who depend on the forest ecosystem.
If we do not tackle deforestation, all other efforts to fight climate change and biodiversity loss on an EU level are nothing but a drop in the ocean.
The impact of deforestation on nature and society sparked a huge outcry from EU citizens. The Public Consultation launched by the Commission received more than 1.2m responses, making it the second most popular in the history of the EU. The Parliament Magazine
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Malaysia-A century of resilient palm oil industry
FROM a humble start over a century ago, Malaysia is now the second-largest producer of palm oil and a major exporter globally.
Oil palm was first introduced to Malaya as a commercial plant sometime between 1916 and 1917 at the Tennamaran Estate in Selangor.
According to a journal titled “Malaysia: 100 Years of Resilient Palm Oil Economic Performance”, the oil palm plantation area had blossomed from 55,000ha to 5.74 million ha in a span of 60 years.
In line with the area expansion, the production of palm oil grew tremendously from less than 100,000 tonnes in the early 1960s to approximately 17.32 million tonnes in 2016.
The cultivation of oil palm increased at a fast pace in early 1960s under the government’s agricultural diversification programme, which was introduced to reduce the country’s economic dependence on rubber and tin.
Additionally, around the same time, the government introduced land settlement schemes for planting oil palm to eradicate poverty for the landless farmers and smallholders.
Further down the road, the industry directly employed more than 570,000 workers by 2020, and contributed US$21.09 billion (RM90.9 billion) to Malaysia’s exports. The Malaysian Reserve
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Liberia: Maryland Oil Palm Plantation Accused of land-grab, Rights Violations
— SDI’s damning investigation unearths MOPP's alleged shady deeds in Maryland County
The Maryland Oil Palm Plantation (MOPP), one of the largest palm oil companies in the country, has been accused of a wide range of land-grabbing allegations, violating human rights, and exploiting labor in Sodoken district, Maryland County.
Local communities, including Barraken and Hudukudi, accused the company of not respecting their customary land rights, intimidating and acting in ways that encourage conflicts among residents.
In a damning investigative report released over the weekend by Sustainable Development Institute (SDI), MOPP is accused of forcing locals off their lands, labor exploitation, destruction of tropical forest, and polluting local populations’ water sources among others.
“MOPP operated on former Decoris plantation land, but when that was not enough they also moved into former Libsuco plantations and community land,” the report says. “MOPP cleared forests, sacred places and cultivation sites or bush. The area between Barraken and Hudukudi was previously forest, not plantation.”
The report also indicated that “near Old Sodoken, Pedebo and Kaken communities claim that forest and farmland was cleared.” Liberian Observer
----------
Liberia-The Farmer Defending His Land Against A Palm Plantation
PLEEBO, Maryland County – One day in 2016 policemen arrested Saturday Wilson at his farm. Wilson had been accused by the Maryland Oil Palm Plantation (MOPP) of stealing fertilizers, a court document shows.
Wilson spent two days in a police cell and after a relatively short case, the Pleebo Magisterial Court sentenced him to three and a half months in prison. It said he prevented the company from clearing the land the government had leased to it.
“I told [the judge], ‘For me, I am not embarrassing the concession but that is my land,’” Wilson tells The DayLight at his home in Gewloken in the Gbolobo Chiefdom of Pleebo Sodoken District.
“I will serve my sentence but when I come, the land will remain there. I will meet it there. It will still be for me.”
That was not Wilson’s first ordeal with MOPP, and not his last either. In the last 13 years, the 47-year-old farmer has been embroiled in a battle with the company over his farmland. It has placed him behind bars three times. However, he still owns the land. The Daylight
----------
Wilmar and Financiers Exposed to Conflict Palm oil in Liberia
Amsterdam and Duazon: Sustainable Development Institute (SDI) Liberia and Milieudefensie expose the ongoing social and environmental harms in Maryland Oil Palm Plantation (MOPP) in Liberia. Over the past years, two research missions and local forest monitors documented severe cases of criminalisation of community members, intimidation and violence, land grabbing, pollution and destruction of valuable nature.
Community testimonies and related documents paint a bleak picture of life and work in the plantation area. Several communities have resisted the expansion of the plantion on their customary lands ever since MOPP entered the area in 2011. Community land was taken without consent. But their resistance is met with violence and intimidation. Community members testify that intimidation and violence has increased over the past year. People are afraid, especially those that have the courage to speak up.
MOPP is situated in the county of Maryland close to the border with Ivory Coast. It is owned by SIFCA, a leading Ivorian Agribusiness group. Wilmar owns part of this group and its refinery, where MOPP products are refined. Wilmar is one of the largest Agri-businesses in the world. The African, French and Dutch development banks invested in SIFCA and a range of Asian,UK, US and French financiers are exposed to the harms on the MOPP plantations through their financing of Wilmar.
James Otto, programme manager at SDI, says ‘Communities have the right to a formal and legally binding agreement with the company on the use of their lands. MOPP urgently needs to start negotiating and listening to communities, agree on terms and conditions of a lease, provide loss and damages and give back land to communities where requested. The government of Liberia has to make sure that companies like MOPP are not flouting the rules and comply with the Land Rights Act of Liberia.’ GNN Liberia
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February 13, 2023
India seen coping with Indonesia curbs on palm oil exports
That's a sharp contrast with last year when a sudden change in export policies by Jakarta forced India to increase purchases from Malaysia, which at the time was selling palm oil at record high prices .
Last week, Indonesia said it will suspend some palm oil export permits to secure domestic supply as cooking oil prices rise ahead of upcoming Islamic festival Ramadan. Reuters
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Indonesia invites US investment while ‘not taking sides’
Amid an intensifying rivalry, Deputy Investment Minister Nurul Ichwan said she saw the strength of Indonesia’s strategy in accepting cooperation from all parties.
JAKARTA – Southeast Asian countries have high expectations that China will soon win its fight against COVID-19. A fully recovered China matters to nations in the region, if not the whole world, because it is a main driver of global economic growth.
Russian President Vladimir Putin’s invasion of Ukraine has had devastating impacts on the world, especially in the skyrocketing prices of gas and wheat. Hyperinflation is casting a shadow over many countries and millions of people are facing starvation, particularly in Africa. The world can hope to avoid the worst-case scenario if China regains its feet.
President Joko “Jokowi” Widodo warned the nation on Wednesday that the world was facing the real threat of a recession next year. An ailing China would spell disaster in many nations, including Indonesia, because of their heavy dependence on the most populous country in world trade.
The World Bank projected in September that China’s gross domestic product would grow just 2.8 percent this year, compared to an average 5.3 percent in 23 other Asian countries. This would be the first time since 1990 that China records lower growth than its Asian neighbors. Asia News
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Nigeria-Okomu Oil: High Palm Oil Demand Impacts Stock Output
The drop in palm oil import from Malaysia has given huge demand for local production of the commodity, and inevitably hiking the price. Data from the Malaysian Palm oil Council (MPOC) shows that import of palm oil from Malaysia to Nigeria declined by 34.7 per cent year on year as local production rises on increased investments. Nigeria crude palm oil (CPO) import from Malaysia declined from 262,065 metric tons in the first nine months in 2021 to 171,011 metric tons in the same period in 2022. Experts say the sharp drop in the volume of importation can be attributed to the ongoing massive investments by plantation owners in the country that has boosted local production in the last five years. This development is impacting positively on the share price of OkomuOil Palm (OKOMUOIL) listed on Nigerian Exchange Limited (NGX). The current share price of OKOMUOIL is N181.20. OKOMUOIL closed its last trading day (Friday, February 10, 2023) at 181.20 NGN per share on the Nigerian Stock Exchange (NGX). Okomu Oil Palm began the year with a share price of N165.00 and has since gained 9.82 per cent on that price valuation, ranking it 33rd on the NGX in terms of year-to-date performance. Okomu Oil Palm is the 84th most traded stock on the Nigerian Stock Exchange over the past three months (Nov 11, 2022 – Feb 10, 2023). It has traded a total volume of 8.39 million shares—in 2,063 deals—valued at NGN 1.41 billion over the period, with an average of 133,154 traded shares per session. A volume high of 1.11 million was achieved on February 9, and a low of 3,178 on December 9th, for the same period. New Telegraph NG
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Malaysia-Proposed palm oil exports ban will imperil smallholders’ income
THE proposed ban on palm oil exports to the European Union (EU) may bring unexpected dire consequences to the industry, experts said.
Singapore-based Palm Oil Analytics owner and co-founder Dr Sathia Varqa said the main impact of the proposed ban will be on the income of smallholders, who will not be able to sell to the mills, who in turn cannot sell to refiners.
He added that this is because traders are not taking delivery from refineries and crushers to export to the EU.
“Indonesia imposed a blanket ban on all palm product exports in May in an attempt to shore up domestic supplies but this policy failed miserably after global crude palm oil (CPO) prices shot up while domestic Indonesian smallholders were not able to sell their fresh fruit bunches (FFBs) to the mills.
“Therefore, the impact will be felt from shareholders to smallholders,” he told The Malaysian Reserve (TMR).
Commenting further, Sathia said Malaysia, being the world’s second-biggest palm oil producer, is not in a weak position and has well-established and widely adopted Malaysian Sustainable Palm Oil (MSPO) standards.
He noted that the key is now for the palm oil industry leaders to negotiate and discuss with EU to adopt most parts of MSPO in their due diligence exercise to verify sustainably produced palm products. The Malaysian Reserve
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India seen coping with Indonesia curbs on palm oil exports
- Indonesia to suspend some palm oil export permits
- Jakarta keen to calm local prices ahead of Ramadan
- Top buyer India unlikely to suffer like last year
- Indian edible oil stocks jump to record high
That's a sharp contrast with last year when a sudden change in export policies by Jakarta forced India to increase purchases from Malaysia, which at the time was selling palm oil at record high prices .
Last week, Indonesia said it will suspend some palm oil export permits to secure domestic supply as cooking oil prices rise ahead of upcoming Islamic festival Ramadan. Reuters
-----------
Indonesia invites US investment while ‘not taking sides’
Amid an intensifying rivalry, Deputy Investment Minister Nurul Ichwan said she saw the strength of Indonesia’s strategy in accepting cooperation from all parties.
JAKARTA – Southeast Asian countries have high expectations that China will soon win its fight against COVID-19. A fully recovered China matters to nations in the region, if not the whole world, because it is a main driver of global economic growth.
Russian President Vladimir Putin’s invasion of Ukraine has had devastating impacts on the world, especially in the skyrocketing prices of gas and wheat. Hyperinflation is casting a shadow over many countries and millions of people are facing starvation, particularly in Africa. The world can hope to avoid the worst-case scenario if China regains its feet.
President Joko “Jokowi” Widodo warned the nation on Wednesday that the world was facing the real threat of a recession next year. An ailing China would spell disaster in many nations, including Indonesia, because of their heavy dependence on the most populous country in world trade.
The World Bank projected in September that China’s gross domestic product would grow just 2.8 percent this year, compared to an average 5.3 percent in 23 other Asian countries. This would be the first time since 1990 that China records lower growth than its Asian neighbors. Asia News
----------
Nigeria-Okomu Oil: High Palm Oil Demand Impacts Stock Output
The drop in palm oil import from Malaysia has given huge demand for local production of the commodity, and inevitably hiking the price. Data from the Malaysian Palm oil Council (MPOC) shows that import of palm oil from Malaysia to Nigeria declined by 34.7 per cent year on year as local production rises on increased investments. Nigeria crude palm oil (CPO) import from Malaysia declined from 262,065 metric tons in the first nine months in 2021 to 171,011 metric tons in the same period in 2022. Experts say the sharp drop in the volume of importation can be attributed to the ongoing massive investments by plantation owners in the country that has boosted local production in the last five years. This development is impacting positively on the share price of OkomuOil Palm (OKOMUOIL) listed on Nigerian Exchange Limited (NGX). The current share price of OKOMUOIL is N181.20. OKOMUOIL closed its last trading day (Friday, February 10, 2023) at 181.20 NGN per share on the Nigerian Stock Exchange (NGX). Okomu Oil Palm began the year with a share price of N165.00 and has since gained 9.82 per cent on that price valuation, ranking it 33rd on the NGX in terms of year-to-date performance. Okomu Oil Palm is the 84th most traded stock on the Nigerian Stock Exchange over the past three months (Nov 11, 2022 – Feb 10, 2023). It has traded a total volume of 8.39 million shares—in 2,063 deals—valued at NGN 1.41 billion over the period, with an average of 133,154 traded shares per session. A volume high of 1.11 million was achieved on February 9, and a low of 3,178 on December 9th, for the same period. New Telegraph NG
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Malaysia-Proposed palm oil exports ban will imperil smallholders’ income
THE proposed ban on palm oil exports to the European Union (EU) may bring unexpected dire consequences to the industry, experts said.
Singapore-based Palm Oil Analytics owner and co-founder Dr Sathia Varqa said the main impact of the proposed ban will be on the income of smallholders, who will not be able to sell to the mills, who in turn cannot sell to refiners.
He added that this is because traders are not taking delivery from refineries and crushers to export to the EU.
“Indonesia imposed a blanket ban on all palm product exports in May in an attempt to shore up domestic supplies but this policy failed miserably after global crude palm oil (CPO) prices shot up while domestic Indonesian smallholders were not able to sell their fresh fruit bunches (FFBs) to the mills.
“Therefore, the impact will be felt from shareholders to smallholders,” he told The Malaysian Reserve (TMR).
Commenting further, Sathia said Malaysia, being the world’s second-biggest palm oil producer, is not in a weak position and has well-established and widely adopted Malaysian Sustainable Palm Oil (MSPO) standards.
He noted that the key is now for the palm oil industry leaders to negotiate and discuss with EU to adopt most parts of MSPO in their due diligence exercise to verify sustainably produced palm products. The Malaysian Reserve
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February 12, 2023
India, US, Brazil to work together for Global Biofuels Alliance
New Delhi: India, Brazil and the US, as leading biofuel producers and consumers in the world, will work together during the next few months towards the development of a Global Biofuels Alliance along with other interested countries, the Ministry of Petroleum & Natural Gas said in a statement.
The Global Biofuel Alliance is one of the priorities under India’s G20 Presidency and was announced by India’s Petroleum and Natural Gas Minister Hardeep Sing Puri during India Energy Week 2023.
This alliance will be aimed at facilitating cooperation and intensifying the use of sustainable biofuels, including in the transportation sector.
The focus of the alliance will be on strengthening markets, facilitating global biofuels trade, development of concrete policy lesson-sharing and provision of technical support for national biofuels programs worldwide, the Ministry of Petroleum and Natural Gas said in a release. Live Mint
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Survey: EU's influence surging in Southeast Asia
A survey has found that more people in Southeast Asia would prefer to engage with the EU, amid US-China rivalry in the region. In particular, Cambodians viewed the bloc favorably, Malaysians and Indonesians not so much.
The European Union's image in Southeast Asia has improved over the past year, including its reputation as a defender of free trade and international law, according to The State of Southeast Asia 2023 survey report published late this week
Brussels has cemented its place as the preferred "third party" that Southeast Asian nations want to engage with amid fractious US-China superpower rivalry in the region, while trust in the EU as an economic and political actor is also growing, the report said.
Almost 43% of the region's respondents preferred the EU as an alternative partner, well ahead of Japan, the UK and India.
"Against the backdrop of the US-China rivalry, ASEAN needs to broaden its strategic options," Melinda Martinus, lead researcher at the ISEAS–Yusof Ishak Institute's ASEAN Studies Center and an author of the annual survey, said, referring to the Association of Southeast Asian Nations. DW
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Uganda-Gov’t sets up committee to resolve land disagreement in Masaka
A section of leaders in the greater Masaka region has welcomed efforts by the state minister for economic monitoring Beatrice Akello to institute a select committee to address land wrangles in Bukakata that have stalled the Palm oil project in the area. The leaders say the committee will help resolve the longstanding impasse over the ownership of the land between the said landlords and tenants. NTV UG
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India, US, Brazil to work together for Global Biofuels Alliance
New Delhi: India, Brazil and the US, as leading biofuel producers and consumers in the world, will work together during the next few months towards the development of a Global Biofuels Alliance along with other interested countries, the Ministry of Petroleum & Natural Gas said in a statement.
The Global Biofuel Alliance is one of the priorities under India’s G20 Presidency and was announced by India’s Petroleum and Natural Gas Minister Hardeep Sing Puri during India Energy Week 2023.
This alliance will be aimed at facilitating cooperation and intensifying the use of sustainable biofuels, including in the transportation sector.
The focus of the alliance will be on strengthening markets, facilitating global biofuels trade, development of concrete policy lesson-sharing and provision of technical support for national biofuels programs worldwide, the Ministry of Petroleum and Natural Gas said in a release. Live Mint
---------
Survey: EU's influence surging in Southeast Asia
A survey has found that more people in Southeast Asia would prefer to engage with the EU, amid US-China rivalry in the region. In particular, Cambodians viewed the bloc favorably, Malaysians and Indonesians not so much.
The European Union's image in Southeast Asia has improved over the past year, including its reputation as a defender of free trade and international law, according to The State of Southeast Asia 2023 survey report published late this week
Brussels has cemented its place as the preferred "third party" that Southeast Asian nations want to engage with amid fractious US-China superpower rivalry in the region, while trust in the EU as an economic and political actor is also growing, the report said.
Almost 43% of the region's respondents preferred the EU as an alternative partner, well ahead of Japan, the UK and India.
"Against the backdrop of the US-China rivalry, ASEAN needs to broaden its strategic options," Melinda Martinus, lead researcher at the ISEAS–Yusof Ishak Institute's ASEAN Studies Center and an author of the annual survey, said, referring to the Association of Southeast Asian Nations. DW
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Uganda-Gov’t sets up committee to resolve land disagreement in Masaka
A section of leaders in the greater Masaka region has welcomed efforts by the state minister for economic monitoring Beatrice Akello to institute a select committee to address land wrangles in Bukakata that have stalled the Palm oil project in the area. The leaders say the committee will help resolve the longstanding impasse over the ownership of the land between the said landlords and tenants. NTV UG
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February 11, 2023
Indonesia, Malaysia to send palm oil mission to EU
Indonesia and Malaysia have agreed to step up efforts to fight discrimination against palm oil and protect the industry by sending a mission to the European Union, which has issued a new policy to block the sale of palm oil. At a meeting in Jakarta on Thursday between Coordinating Economic Affairs Minister Airlangga Hartarto and Malaysia’s Deputy Prime Minister and Plantations Minister Fadillah Yusof, the two countries agreed to send a joint mission to present scientific facts, economic benefits and industry best practices. “We have agreed to protect the palm oil sector by strengthening [our] efforts and cooperation to deal with this discrimination. With regard to this unilateral move that could impact the palm oil industry, our meeting agreed to hold a policy dialogue with major importing countries,” Airlangga told a press conference afterward. The Jakarta Post
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Malaysia-Indonesia mission to the EU to be in May, says Fadillah
JAKARTA (Feb 10): Malaysia’s joint mission with Indonesia to the European Union (EU) to deal with the bloc’s restrictions on the entry of various commodity products will be carried out in May, says Deputy Prime Minister Datuk Seri Fadillah Yusof.
Fadillah, who is also the plantation and commodities minister, said Malaysia will inform the EU about the reforestation programme and Malaysia’s Forestry Policy, which includes sustainable forest management, conservation and biodiversity protection.
“In Malaysia, we already have a policy not to open new forests other than what has been designated,” he told the media after holding a meeting with Indonesia’s Trade Minister Dr Zulkifli Hasan here.
Fadillah said the replanting of forest species in the community farming programme in Malaysia is actively underway.
Both also discussed the role of the Council of Palm Oil Producing Countries (CPOPC) to bring the issue of discriminatory trade barriers against palm oil and rubber producing countries to the Asean level. The Edge Markets
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Indonesia, Malaysia to send palm oil envoys to EU over deforestation law
JAKARTA, Feb 9 (Reuters) - Indonesia and Malaysia, the world's biggest palm oil producers, plan to send envoys to the European Union to discuss the impact of the bloc's new deforestation law on their palm oil sectors, ministers from the Southeast Asian countries said on Thursday.
The EU in December agreed on a deforestation law that requires companies to produce a due diligence statement showing when and where their commodities were produced and provide "verifiable" information that they were not grown on land deforested after 2020, or risk hefty fines.
Indonesia's Coordinating Minister for Economic Affairs Airlangga Hartarto on Thursday met with Malaysia's Commodities Minister Fadillah Yusof to discuss the next steps.
"We agreed to carry out a joint mission to the EU to communicate and to prevent unintended consequences of the regulation on the palm oil sector, and to seek possible collaborative approaches," Airlangga told reporters. Reuters
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Indonesia-Regarding the Deforestation Law, the European Ambassador clarified to Apkasindo
JAKARTA, SAWIT INDONESIA – The polemic on the Anti-Deforestation Law was quickly responded by representatives of European Union countries in Indonesia. One of them is direct dialogue with the Indonesian Palm Oil Growers Association (APKASINDO) at the Apkasindo Representative Office in the Thamrin City Business Center, Jakarta, Friday (10 February 2023).
"We appreciate the arrival of the European Union representative to explain the deforestation law to Apkasindo because the issue is getting wilder, especially since it is being directly led by the EU Ambassador. So far, there has been a lot of miscommunication related to deforestation regulations circulating in the public and it has always been a dish that discredits palm oil,” said Dr. Wrestling ME Manurung, MP, CIMA, Chairman of the DPP APKASINDO.
The arrival of the European Union Representative was led by the European Union Ambassador to Indonesia, Vincent Piket who was accompanied by Henriette Faergemann, the First Counselor for Environmental Affairs of the European Union.
The European Ambassador, Vincent Piket emphasized that "there is no prohibition against any country or commodity including palm oil from entering the European Union because the food industry requires palm oil as a raw material. Sawit Indonesia
Indonesia, Malaysia to send palm oil mission to EU
Indonesia and Malaysia have agreed to step up efforts to fight discrimination against palm oil and protect the industry by sending a mission to the European Union, which has issued a new policy to block the sale of palm oil. At a meeting in Jakarta on Thursday between Coordinating Economic Affairs Minister Airlangga Hartarto and Malaysia’s Deputy Prime Minister and Plantations Minister Fadillah Yusof, the two countries agreed to send a joint mission to present scientific facts, economic benefits and industry best practices. “We have agreed to protect the palm oil sector by strengthening [our] efforts and cooperation to deal with this discrimination. With regard to this unilateral move that could impact the palm oil industry, our meeting agreed to hold a policy dialogue with major importing countries,” Airlangga told a press conference afterward. The Jakarta Post
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Malaysia-Indonesia mission to the EU to be in May, says Fadillah
JAKARTA (Feb 10): Malaysia’s joint mission with Indonesia to the European Union (EU) to deal with the bloc’s restrictions on the entry of various commodity products will be carried out in May, says Deputy Prime Minister Datuk Seri Fadillah Yusof.
Fadillah, who is also the plantation and commodities minister, said Malaysia will inform the EU about the reforestation programme and Malaysia’s Forestry Policy, which includes sustainable forest management, conservation and biodiversity protection.
“In Malaysia, we already have a policy not to open new forests other than what has been designated,” he told the media after holding a meeting with Indonesia’s Trade Minister Dr Zulkifli Hasan here.
Fadillah said the replanting of forest species in the community farming programme in Malaysia is actively underway.
Both also discussed the role of the Council of Palm Oil Producing Countries (CPOPC) to bring the issue of discriminatory trade barriers against palm oil and rubber producing countries to the Asean level. The Edge Markets
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Indonesia, Malaysia to send palm oil envoys to EU over deforestation law
JAKARTA, Feb 9 (Reuters) - Indonesia and Malaysia, the world's biggest palm oil producers, plan to send envoys to the European Union to discuss the impact of the bloc's new deforestation law on their palm oil sectors, ministers from the Southeast Asian countries said on Thursday.
The EU in December agreed on a deforestation law that requires companies to produce a due diligence statement showing when and where their commodities were produced and provide "verifiable" information that they were not grown on land deforested after 2020, or risk hefty fines.
Indonesia's Coordinating Minister for Economic Affairs Airlangga Hartarto on Thursday met with Malaysia's Commodities Minister Fadillah Yusof to discuss the next steps.
"We agreed to carry out a joint mission to the EU to communicate and to prevent unintended consequences of the regulation on the palm oil sector, and to seek possible collaborative approaches," Airlangga told reporters. Reuters
----------
Indonesia-Regarding the Deforestation Law, the European Ambassador clarified to Apkasindo
JAKARTA, SAWIT INDONESIA – The polemic on the Anti-Deforestation Law was quickly responded by representatives of European Union countries in Indonesia. One of them is direct dialogue with the Indonesian Palm Oil Growers Association (APKASINDO) at the Apkasindo Representative Office in the Thamrin City Business Center, Jakarta, Friday (10 February 2023).
"We appreciate the arrival of the European Union representative to explain the deforestation law to Apkasindo because the issue is getting wilder, especially since it is being directly led by the EU Ambassador. So far, there has been a lot of miscommunication related to deforestation regulations circulating in the public and it has always been a dish that discredits palm oil,” said Dr. Wrestling ME Manurung, MP, CIMA, Chairman of the DPP APKASINDO.
The arrival of the European Union Representative was led by the European Union Ambassador to Indonesia, Vincent Piket who was accompanied by Henriette Faergemann, the First Counselor for Environmental Affairs of the European Union.
The European Ambassador, Vincent Piket emphasized that "there is no prohibition against any country or commodity including palm oil from entering the European Union because the food industry requires palm oil as a raw material. Sawit Indonesia
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February 09, 2023
Malaysian palm oil industry has a long-term plan to address EU regulation
In the Malaysian palm oil sector, there is much concern about the European Union's (EU’s) new Deforestation Regulation. This concern is justified: the regulation is thinly veiled protectionism, and will raise costs and lower incomes for both our small farmers and our successful companies.
This is not the first such EU regulation to target palm oil, nor will it be the last. In the past decade at the Malaysian Palm Oil Council (MPOC), we have seen many efforts by European special interest groups to ban or restrict palm oil. Malaysia has succeeded in defeating those attacks, and we must do so again in 2023.
It is helpful to consider, first, what is our objective when responding to such a regulation? We have a direct objective: to keep the EU market open for our palm oil exports. European companies are important buyers of our palm oil products, and partnerships between Malaysian suppliers and EU customers often stretch back decades. We also have an indirect objective: to prevent unfair regulation from harming our industry around the world. The Edge Markets
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Indonesia, Malaysia to send palm oil envoys to EU over deforestation law
AKARTA, Feb 9 (Reuters) - Indonesia and Malaysia, the world's biggest palm oil producers, plan to send envoys to the European Union to discuss the impact of the bloc's new deforestation law on their palm oil sectors, ministers from the Southeast Asian countries said on Thursday.
The EU in December agreed on a deforestation law that requires companies to produce a due diligence statement showing when and where their commodities were produced and provide "verifiable" information that they were not grown on land deforested after 2020, or risk hefty fines.
The regulation has been welcomed by environmentalists as an important step to protect forests as deforestation is responsible for about 10% of global greenhouse gas emissions.
Indonesia's Coordinating Minister for Economic Affairs Airlangga Hartarto on Thursday met with Malaysia's Commodities Minister Fadillah Yusof to discuss the next steps.
"We agreed to carry out a joint mission to the EU to communicate and to prevent unintended consequences of the regulation on the palm oil sector, and to seek possible collaborative approaches," Airlangga told reporters. Reuters
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Malaysia and Indonesia issued a press statement following the bilateral Ministerial meeting
JOINT STATEMENT BILATERAL MINISTERIAL MEETING 9th FEBRUARY 2023
1. The Deputy Prime Minister, Minister of Plantation and Commodities of Malaysia
and the current chairman of Council of Palm Oil producing Countries (CPOPC),
YAB Dato’ Sri Haji Fadillah bin Haji Yusof, and the Coordinating Minister for
Economic Affairs of the Republic of Indonesia, H.E. Airlangga Hartarto
representing the CPOPC Ministerial Council held a Bilateral Ministerial Meeting
followed by the Palm Oil Industry Dialogue on 9 February 2023 at the Mandarin
Oriental Hotel in Jakarta, Indonesia.
2. In the meeting, the Ministers discussed some of the pressing issues with regard
to the palm oil industry, and proposed a joint approach and possible
coordinated actions. Both Ministers agreed to continue protecting the palm
oil sector by strengthening efforts and cooperation in addressing
discrimination against palm oil. In particular, Ministers discussed the
European Union’s Deforestation-free Commodities regulation. Both Ministers
expressed grave concern on the adoption of the regulation, which will have
significant negative impacts on global palm oil exports as well as other
developing countries. The Ministers agreed that the Regulation is a protectionist
instrument that will raise costs for exporters of palm oil and reduce their
competitiveness against other vegetable oils in the European Union. The
Ministers noted their disappointment to the European Union that has not
conducted consultations with its trading partners in a meaningful way. Download Press Release
---------
Can the EU succeed on closing Indonesia trade deal?
The EU has been negotiating an economic partnership agreement with Indonesia for almost seven years. Talks this week present a new opportunity for a breakthrough.
EU and Indonesian negotiators are meeting in Jakarta this week for their first in-person talks in almost three years over a trade agreement that aims to open market access and increase commerce between Europe and Indonesia.
EU officials have expressed confidence that the 13th round of talks on the Comprehensive Economic Partnership Agreement (CEPA) will show progress. Negotiations were launched in 2016, and sticking points include consistent complaints from Jakarta over European environmental legislation as well as reservations from both sides over the other's economic policy.
After a meeting at the G20 Summit in Bali last November, European Commission President Ursula von der Leyen and Indonesian President Joko Widodo set an objective of concluding the deal before the end of their mandates, which would require an in-principle agreement by the end of this year.
EU seeks ties in Southeast Asia A senior EU diplomat told DW on condition of anonymity that Brussels has high expectations of a breakthrough this week, almost seven years after negotiations first began. "It is a critical test to assess the prospects for speeding up the negotiations," the diplomat said. DW
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WHO calls for total elimination of trans fat
The World Health Organisation (WHO) has called for the total elimination of industrial trans fatty acids (TFAs), saying it is responsible for half a million premature deaths each year, VOA News reports.
According to WHO data, 5bn people were being exposed to industrial TFAs, which are commonly found in packaged foods, baked goods, cooking oils and spreads, increasing their risk of heart disease and death, the 23 January report said.
TFAs occur naturally in animal fats but the health concerns relate to industrial trans fats formed by the partial hydrogenation of vegetable oils to increase their stability and shelf life.
The global elimination of industrial trans fat from food could prevent up to 17M deaths from cardiovascular diseases by 2040, according to Tom Frieden, the president and chief executive officer of the public health initiative Resolve to Save Lives.
Frieden also spoke of the importance of distinguishing artificial trans fat from saturated fat, which he called “an inherent part of many food groups in which nobody is proposing to ban”.
Progress had been made since 2018 when the WHO set a goal for the global elimination of trans fat in 2023. It said 43 countries had now implemented best-practice policies for tackling trans fat in food, giving protection from heart disease and death to 2.8bn people, VOA News wrote. OFI
Malaysian palm oil industry has a long-term plan to address EU regulation
In the Malaysian palm oil sector, there is much concern about the European Union's (EU’s) new Deforestation Regulation. This concern is justified: the regulation is thinly veiled protectionism, and will raise costs and lower incomes for both our small farmers and our successful companies.
This is not the first such EU regulation to target palm oil, nor will it be the last. In the past decade at the Malaysian Palm Oil Council (MPOC), we have seen many efforts by European special interest groups to ban or restrict palm oil. Malaysia has succeeded in defeating those attacks, and we must do so again in 2023.
It is helpful to consider, first, what is our objective when responding to such a regulation? We have a direct objective: to keep the EU market open for our palm oil exports. European companies are important buyers of our palm oil products, and partnerships between Malaysian suppliers and EU customers often stretch back decades. We also have an indirect objective: to prevent unfair regulation from harming our industry around the world. The Edge Markets
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Indonesia, Malaysia to send palm oil envoys to EU over deforestation law
AKARTA, Feb 9 (Reuters) - Indonesia and Malaysia, the world's biggest palm oil producers, plan to send envoys to the European Union to discuss the impact of the bloc's new deforestation law on their palm oil sectors, ministers from the Southeast Asian countries said on Thursday.
The EU in December agreed on a deforestation law that requires companies to produce a due diligence statement showing when and where their commodities were produced and provide "verifiable" information that they were not grown on land deforested after 2020, or risk hefty fines.
The regulation has been welcomed by environmentalists as an important step to protect forests as deforestation is responsible for about 10% of global greenhouse gas emissions.
Indonesia's Coordinating Minister for Economic Affairs Airlangga Hartarto on Thursday met with Malaysia's Commodities Minister Fadillah Yusof to discuss the next steps.
"We agreed to carry out a joint mission to the EU to communicate and to prevent unintended consequences of the regulation on the palm oil sector, and to seek possible collaborative approaches," Airlangga told reporters. Reuters
---------
Malaysia and Indonesia issued a press statement following the bilateral Ministerial meeting
JOINT STATEMENT BILATERAL MINISTERIAL MEETING 9th FEBRUARY 2023
1. The Deputy Prime Minister, Minister of Plantation and Commodities of Malaysia
and the current chairman of Council of Palm Oil producing Countries (CPOPC),
YAB Dato’ Sri Haji Fadillah bin Haji Yusof, and the Coordinating Minister for
Economic Affairs of the Republic of Indonesia, H.E. Airlangga Hartarto
representing the CPOPC Ministerial Council held a Bilateral Ministerial Meeting
followed by the Palm Oil Industry Dialogue on 9 February 2023 at the Mandarin
Oriental Hotel in Jakarta, Indonesia.
2. In the meeting, the Ministers discussed some of the pressing issues with regard
to the palm oil industry, and proposed a joint approach and possible
coordinated actions. Both Ministers agreed to continue protecting the palm
oil sector by strengthening efforts and cooperation in addressing
discrimination against palm oil. In particular, Ministers discussed the
European Union’s Deforestation-free Commodities regulation. Both Ministers
expressed grave concern on the adoption of the regulation, which will have
significant negative impacts on global palm oil exports as well as other
developing countries. The Ministers agreed that the Regulation is a protectionist
instrument that will raise costs for exporters of palm oil and reduce their
competitiveness against other vegetable oils in the European Union. The
Ministers noted their disappointment to the European Union that has not
conducted consultations with its trading partners in a meaningful way. Download Press Release
---------
Can the EU succeed on closing Indonesia trade deal?
The EU has been negotiating an economic partnership agreement with Indonesia for almost seven years. Talks this week present a new opportunity for a breakthrough.
EU and Indonesian negotiators are meeting in Jakarta this week for their first in-person talks in almost three years over a trade agreement that aims to open market access and increase commerce between Europe and Indonesia.
EU officials have expressed confidence that the 13th round of talks on the Comprehensive Economic Partnership Agreement (CEPA) will show progress. Negotiations were launched in 2016, and sticking points include consistent complaints from Jakarta over European environmental legislation as well as reservations from both sides over the other's economic policy.
After a meeting at the G20 Summit in Bali last November, European Commission President Ursula von der Leyen and Indonesian President Joko Widodo set an objective of concluding the deal before the end of their mandates, which would require an in-principle agreement by the end of this year.
EU seeks ties in Southeast Asia A senior EU diplomat told DW on condition of anonymity that Brussels has high expectations of a breakthrough this week, almost seven years after negotiations first began. "It is a critical test to assess the prospects for speeding up the negotiations," the diplomat said. DW
---------
WHO calls for total elimination of trans fat
The World Health Organisation (WHO) has called for the total elimination of industrial trans fatty acids (TFAs), saying it is responsible for half a million premature deaths each year, VOA News reports.
According to WHO data, 5bn people were being exposed to industrial TFAs, which are commonly found in packaged foods, baked goods, cooking oils and spreads, increasing their risk of heart disease and death, the 23 January report said.
TFAs occur naturally in animal fats but the health concerns relate to industrial trans fats formed by the partial hydrogenation of vegetable oils to increase their stability and shelf life.
The global elimination of industrial trans fat from food could prevent up to 17M deaths from cardiovascular diseases by 2040, according to Tom Frieden, the president and chief executive officer of the public health initiative Resolve to Save Lives.
Frieden also spoke of the importance of distinguishing artificial trans fat from saturated fat, which he called “an inherent part of many food groups in which nobody is proposing to ban”.
Progress had been made since 2018 when the WHO set a goal for the global elimination of trans fat in 2023. It said 43 countries had now implemented best-practice policies for tackling trans fat in food, giving protection from heart disease and death to 2.8bn people, VOA News wrote. OFI
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February 08, 2023
EU-ENVI to vote on agreements on ETS revision files and CBAM
On 9 February, ENVI Members will vote on the landmark agreements reached at the end of 2022 of key files in the so-called Fit for 55 package.
Members will vote on the outcome of negotiations on the revision of the EU Emissions Trading System (ETS), including related provisions concerning monitoring, reporting and verification (MRV) in shipping, on the ETS aviation, on the Market Stability Reserve (MSR) and on the carbon border adjustment mechanism (CBAM). In association with the EMPL Committee, there will also be a joint vote on the outcomes of the interinstitutional negotiations regarding the establishment of a Social Climate Fund. The files are then expected to be placed on the agenda of the April plenary session for the final vote. During the same voting session Members are also expected to elect the third ENVI Vice-Chair. Members will also vote on the adoption of several draft opinions concerning the Corporate Sustainable Due Diligence Directive, the European Semester for economic policy coordination 2023, EU's own resources, the 2021 discharge, as well as harmonized conditions for the marketing of construction products. Europarl.Europa
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Malaysia Weighs Trade Curbs to Fight EU’s Anti-Palm Oil Policies
(Bloomberg) -- Malaysia, the world’s second-biggest palm oil producer, is weighing a range of trade curbs to strike back against what it calls unfair policies from the European Union that block market access for the tropical oil.
The Southeast Asian country will coordinate its response with Indonesia, the largest edible oils supplier globally. Strategies being considered include slowing commodities trade with Europe and reviewing imports from the bloc, according to Malaysia’s Deputy Prime Minister Fadillah Yusof.
The EU agreed to a historic law in December that will stop products causing forest destruction from being sold in European shops and supermarkets. Products like wood, rubber, beef, leather, cocoa, coffee, palm oil and soy won’t make it past the port unless proven to be deforestation-free. Malaysia and Indonesia are leading international criticism of the policy.
“If they’re too firm on their decision, if they do not want to listen to us, I think one of the areas that we can be looking at together with Indonesia is how we should look at Europe,” Fadillah, who is also Malaysia’s Minister of Plantation and Commodities, said in an interview Tuesday. “If we are not fairly treated, I think there should be some counteraction by us.” BNN Bloomberg
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February 07, 2023
Indonesia to suspend some palm oil export permits - officials
Palm oil exporters had accumulated large shipment quotas last year and they now had little incentive to supply the domestic market, he said.
Indonesia issues export permits for palm oil companies that have already sold a proportion of their products to the domestic market, under a policy known as "Domestic Market Obligation" (DMO). Reuters
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EU deforestation law risks sidelining small farmers, says palm oil watchdog, RSPO
KUALA LUMPUR, Feb 7 (Reuters) - A new European Union law preventing the import of commodities linked to deforestation risks sidelining small farmers who are unable to meet the burdensome cost of compliance, the head of the Roundtable on Sustainable Palm Oil (RSPO) said on Tuesday.
Joseph D'Cruz told Reuters larger RSPO-certified members will not face difficulties complying with EU requirements as their certification standards already prohibit deforestation and the conversion of primary forests.
"There is a human, social and developmental cost there, which smaller, marginal producers may be forced to bear in order for the EU deforestation regulation to be implemented the way it is being set up right now," the RSPO chief executive officer said in an interview. Reuters
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Fastmarkets expands by acquiring Palm Oil Analytics
LONDON, Feb. 6, 2023 /PRNewswire/ -- Fastmarkets announces the acquisition of Palm Oil Analytics, a Singapore-based provider of prices, data and news on palm oil and its derivative products. The acquisition expands Fastmarkets' presence in agriculture, building on our recent acquisitions of AgriCensus in 2020 and The Jacobsen in 2021.
The acquisition of Palm Oil Analytics allows Fastmarkets to accelerate plans to support trade and investment decisions across vegetable oil markets, including in biofuels and renewable energy markets. This complements the work of Fastmarkets' existing pricing for the biofuels, biomass and battery raw materials markets.
Fastmarkets is the industry-leading price reporting agency (PRA) serving the metals, mining, forest products, energy transition and agriculture markets. Fastmarkets' growth is fueled by its reputation as the trusted source for pricing, news, analytics and events. It is also driven by advancements in its platform and products as well as in its global operation, which continuously aims to enhance the value delivered to customers. As a part of Fastmarkets, Palm Oil Analytics will have access to world-class price reporting infrastructure that will support plans to accelerate its growth. PR Newswire
EU-ENVI to vote on agreements on ETS revision files and CBAM
On 9 February, ENVI Members will vote on the landmark agreements reached at the end of 2022 of key files in the so-called Fit for 55 package.
Members will vote on the outcome of negotiations on the revision of the EU Emissions Trading System (ETS), including related provisions concerning monitoring, reporting and verification (MRV) in shipping, on the ETS aviation, on the Market Stability Reserve (MSR) and on the carbon border adjustment mechanism (CBAM). In association with the EMPL Committee, there will also be a joint vote on the outcomes of the interinstitutional negotiations regarding the establishment of a Social Climate Fund. The files are then expected to be placed on the agenda of the April plenary session for the final vote. During the same voting session Members are also expected to elect the third ENVI Vice-Chair. Members will also vote on the adoption of several draft opinions concerning the Corporate Sustainable Due Diligence Directive, the European Semester for economic policy coordination 2023, EU's own resources, the 2021 discharge, as well as harmonized conditions for the marketing of construction products. Europarl.Europa
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Malaysia Weighs Trade Curbs to Fight EU’s Anti-Palm Oil Policies
(Bloomberg) -- Malaysia, the world’s second-biggest palm oil producer, is weighing a range of trade curbs to strike back against what it calls unfair policies from the European Union that block market access for the tropical oil.
The Southeast Asian country will coordinate its response with Indonesia, the largest edible oils supplier globally. Strategies being considered include slowing commodities trade with Europe and reviewing imports from the bloc, according to Malaysia’s Deputy Prime Minister Fadillah Yusof.
The EU agreed to a historic law in December that will stop products causing forest destruction from being sold in European shops and supermarkets. Products like wood, rubber, beef, leather, cocoa, coffee, palm oil and soy won’t make it past the port unless proven to be deforestation-free. Malaysia and Indonesia are leading international criticism of the policy.
“If they’re too firm on their decision, if they do not want to listen to us, I think one of the areas that we can be looking at together with Indonesia is how we should look at Europe,” Fadillah, who is also Malaysia’s Minister of Plantation and Commodities, said in an interview Tuesday. “If we are not fairly treated, I think there should be some counteraction by us.” BNN Bloomberg
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February 07, 2023
Indonesia to suspend some palm oil export permits - officials
- Cooking oil prices up ahead of Islamic festivals
- Palm oil export quotas linked to domestic sales
- Exporters accumulated export quotas last year - minister
- Two-thirds of existing quotas suspended till May 1 - official
Palm oil exporters had accumulated large shipment quotas last year and they now had little incentive to supply the domestic market, he said.
Indonesia issues export permits for palm oil companies that have already sold a proportion of their products to the domestic market, under a policy known as "Domestic Market Obligation" (DMO). Reuters
---------
EU deforestation law risks sidelining small farmers, says palm oil watchdog, RSPO
KUALA LUMPUR, Feb 7 (Reuters) - A new European Union law preventing the import of commodities linked to deforestation risks sidelining small farmers who are unable to meet the burdensome cost of compliance, the head of the Roundtable on Sustainable Palm Oil (RSPO) said on Tuesday.
Joseph D'Cruz told Reuters larger RSPO-certified members will not face difficulties complying with EU requirements as their certification standards already prohibit deforestation and the conversion of primary forests.
"There is a human, social and developmental cost there, which smaller, marginal producers may be forced to bear in order for the EU deforestation regulation to be implemented the way it is being set up right now," the RSPO chief executive officer said in an interview. Reuters
---------
Fastmarkets expands by acquiring Palm Oil Analytics
LONDON, Feb. 6, 2023 /PRNewswire/ -- Fastmarkets announces the acquisition of Palm Oil Analytics, a Singapore-based provider of prices, data and news on palm oil and its derivative products. The acquisition expands Fastmarkets' presence in agriculture, building on our recent acquisitions of AgriCensus in 2020 and The Jacobsen in 2021.
The acquisition of Palm Oil Analytics allows Fastmarkets to accelerate plans to support trade and investment decisions across vegetable oil markets, including in biofuels and renewable energy markets. This complements the work of Fastmarkets' existing pricing for the biofuels, biomass and battery raw materials markets.
Fastmarkets is the industry-leading price reporting agency (PRA) serving the metals, mining, forest products, energy transition and agriculture markets. Fastmarkets' growth is fueled by its reputation as the trusted source for pricing, news, analytics and events. It is also driven by advancements in its platform and products as well as in its global operation, which continuously aims to enhance the value delivered to customers. As a part of Fastmarkets, Palm Oil Analytics will have access to world-class price reporting infrastructure that will support plans to accelerate its growth. PR Newswire
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February 05, 2023
India-Sans lubrication of assured price, oilseeds leave a bitter aftertaste
The area under oilseed production in the country has been steadily on the rise since 2018.
But the country still depends on imports for 56% of its edible oil needs. Numerous schemes by the state and union government have not been able to incentivise farmers to adopt the cultivation of oilseeds in the state. Unable to compete with cheap edi...
In fact, a study over a 15-year period between 2005 and 2021 showed that the area under oilseeds had declined by 14.65 lakh hectares in the state. According to data from the Reserve Bank of India, in 2021 the state produced 321 thousand tonnes less Deccan Herald
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India-Nagaland Government Signed MoU with Patanjali Foods for Palm Oil Cultivation
Nagaland government has signed a Memorandum of Understanding (MoU) with Patanjali Foods Limited for development and area expansion under palm oil cultivation.
Nagaland government has signed a Memorandum of Understanding (MoU) with Patanjali Foods Limited for development and area expansion under palm oil cultivation and processing for Zone-II (Mokokchung, Longleng, and Mon districts) of Nagaland under the National Mission on Edible Oils-Oil Palm (NMEO-OP)
The MoU was signed by the Director of Agriculture, Nagaland, M Ben Yanthan, and Patanjali Foods Ltd Head-NE Region, Oil Palm Subhas Bhattacharjee at the Directorate of Agriculture, Kohima.
According to Patanjali Foods Ltd, the signing of the MoU with the Government of Nagaland will certainly bring a big boost for the oil palm growers in the state of Nagaland and the region.
Patanjali Foods Ltd is already working in the states of Mizoram, Arunachal Pradesh, Assam, and Tripura in the North East.
About Patanjali
Patanjali Ayurveda is an Indian multinational conglomerate holding company based in Haridwar, India. Patanjali is founded by Ramdev and Balkrishna in 2006. Ramdev and Balkrishna established Patanjali Ayurveda in 2006. Patanjali Food and Herbal Park in Haridwar is the company’s main production facility. The... Read more at: https://currentaffairs.adda247.com/nagaland-government-signed-mou-with-patanjali-foods-for-palm-oil-cultivation/
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India-Area under oil palm cultivation increasing in Kothagudem
So far, oil palm cultivation has been taken up in 12,000 acres of land and steps are being taken to grow oil palm in the remaining 4860 acres of land, district Collector Anudeep Durishetty said.
Kothagudem: The area under oil palm cultivation is increasing in Kothagudem district with the efforts of the district administration, which has set a target of cultivating oil palm in 16,680 acres this financial year.
So far, oil palm cultivation has been taken up in 12,000 acres of land and steps are being taken to grow oil palm in the remaining 4860 acres of land, district Collector Anudeep Durishetty said.
At present, oil palm is being cultivated in about 38,000 acres across the district. As the State government decided to increase palm oil production to make the State a major palm oil exporter in the country, steps are being taken to increase the area under oil palm cultivation.
There is a bright future for oil palm cultivators in view of a great demand for palm oil. Mandal-wise targets have been set for bringing land under oil palm cultivation. Agriculture and horticulture officials have been told to work in coordination and educate farmers, the Collector said. Telangana Today
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Malaysia-Minister lauds withdrawal of ban on Sime Darby’s palm oil products
PETALING JAYA: The withdrawal of the import ban on Sime Darby Plantation Bhd (SDP), after it was cleared of forced labour allegations, bodes well for Malaysia, says human resources minister V Sivakumar.
He said SDP deserved praise for being compliant with international labour standards and called for other companies to follow suit, especially those that employ foreign workers.
“The ministry will not compromise on any form of oppression or exploitation of workers.
“We have intensified enforcement activities and will severely punish those who violate the law,” he said in a statement.
Sivakumar urged businesses and employers to step up efforts to create conducive work environments for their employees as well as improving their compliance with international labour standards. FMT
India-Sans lubrication of assured price, oilseeds leave a bitter aftertaste
The area under oilseed production in the country has been steadily on the rise since 2018.
But the country still depends on imports for 56% of its edible oil needs. Numerous schemes by the state and union government have not been able to incentivise farmers to adopt the cultivation of oilseeds in the state. Unable to compete with cheap edi...
In fact, a study over a 15-year period between 2005 and 2021 showed that the area under oilseeds had declined by 14.65 lakh hectares in the state. According to data from the Reserve Bank of India, in 2021 the state produced 321 thousand tonnes less Deccan Herald
---------
India-Nagaland Government Signed MoU with Patanjali Foods for Palm Oil Cultivation
Nagaland government has signed a Memorandum of Understanding (MoU) with Patanjali Foods Limited for development and area expansion under palm oil cultivation.
Nagaland government has signed a Memorandum of Understanding (MoU) with Patanjali Foods Limited for development and area expansion under palm oil cultivation and processing for Zone-II (Mokokchung, Longleng, and Mon districts) of Nagaland under the National Mission on Edible Oils-Oil Palm (NMEO-OP)
The MoU was signed by the Director of Agriculture, Nagaland, M Ben Yanthan, and Patanjali Foods Ltd Head-NE Region, Oil Palm Subhas Bhattacharjee at the Directorate of Agriculture, Kohima.
According to Patanjali Foods Ltd, the signing of the MoU with the Government of Nagaland will certainly bring a big boost for the oil palm growers in the state of Nagaland and the region.
Patanjali Foods Ltd is already working in the states of Mizoram, Arunachal Pradesh, Assam, and Tripura in the North East.
About Patanjali
Patanjali Ayurveda is an Indian multinational conglomerate holding company based in Haridwar, India. Patanjali is founded by Ramdev and Balkrishna in 2006. Ramdev and Balkrishna established Patanjali Ayurveda in 2006. Patanjali Food and Herbal Park in Haridwar is the company’s main production facility. The... Read more at: https://currentaffairs.adda247.com/nagaland-government-signed-mou-with-patanjali-foods-for-palm-oil-cultivation/
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India-Area under oil palm cultivation increasing in Kothagudem
So far, oil palm cultivation has been taken up in 12,000 acres of land and steps are being taken to grow oil palm in the remaining 4860 acres of land, district Collector Anudeep Durishetty said.
Kothagudem: The area under oil palm cultivation is increasing in Kothagudem district with the efforts of the district administration, which has set a target of cultivating oil palm in 16,680 acres this financial year.
So far, oil palm cultivation has been taken up in 12,000 acres of land and steps are being taken to grow oil palm in the remaining 4860 acres of land, district Collector Anudeep Durishetty said.
At present, oil palm is being cultivated in about 38,000 acres across the district. As the State government decided to increase palm oil production to make the State a major palm oil exporter in the country, steps are being taken to increase the area under oil palm cultivation.
There is a bright future for oil palm cultivators in view of a great demand for palm oil. Mandal-wise targets have been set for bringing land under oil palm cultivation. Agriculture and horticulture officials have been told to work in coordination and educate farmers, the Collector said. Telangana Today
---------
Malaysia-Minister lauds withdrawal of ban on Sime Darby’s palm oil products
PETALING JAYA: The withdrawal of the import ban on Sime Darby Plantation Bhd (SDP), after it was cleared of forced labour allegations, bodes well for Malaysia, says human resources minister V Sivakumar.
He said SDP deserved praise for being compliant with international labour standards and called for other companies to follow suit, especially those that employ foreign workers.
“The ministry will not compromise on any form of oppression or exploitation of workers.
“We have intensified enforcement activities and will severely punish those who violate the law,” he said in a statement.
Sivakumar urged businesses and employers to step up efforts to create conducive work environments for their employees as well as improving their compliance with international labour standards. FMT
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February 04, 2023
U.S. lifts import ban on Sime Darby Plantation products
KUALA LUMPUR, Feb 3 (Reuters) - U.S. customs authorities on Friday lifted a two-year import ban on palm oil products made by Malaysia's Sime Darby Plantation (SIPL.KL), after determining the goods were no longer produced with forced labour.
Goods produced by Sime Darby Plantation, the world's largest palm oil company by land size, have since December 2020 been blocked by U.S. Customs and Border Protection (CBP) from entering the United States over suspected abusive labour practices.
In response, Sime Darby Plantation appointed an ethical trade consultancy to audit its facilities, and last year set aside about $20 million to compensate current and former migrant workers who paid recruitment fees to secure jobs at the firm.
In a notice published on the U.S. Federal Register website on Friday, CBP said it had now "determined that the products were no longer being mined, produced, or manufactured wholly or in part with the use of convict, forced, or indentured labor by Sime Darby Plantation", citing additional information it had received. Reuters
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Read the official decision to lift the WRO against Sime Darby Plantations here.
SUMMARY:
On January 28, 2022, U.S. Customs and Border Protection (CBP), with the approval of the Secretary of the Department of Homeland Security, issued a Finding that certain palm oil and derivative products made wholly or in part with palm oil produced by Sime Darby Plantation Berhad, its subsidiaries, and joint ventures, were being produced with the use of forced labor, and were being, or were likely to be, imported into the United States. CBP has now determined, based upon additional information, that such merchandise is no longer being produced with the use of forced labor in violation of section 307 of the Tariff Act of 1930, as amended. Federal Register.gov
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February 03, 2023
US Clears Biggest Oil Palm Grower of Forced Labor Charges
(Bloomberg) -- The US Customs said Sime Darby Plantation Bhd., the world’s largest oil palm grower, was found to no longer be using forced labor, allowing the country to restart imports from the Malaysian company.
Palm oil and related products linked to Sime Darby were banned from entering the US since January 2022 on findings of forced labor. Since then, the company has provided additional information, and the US Customs and Border Protection said Thursday it has satisfactory evidence to believe that the products are “no longer mined, produced, or manufactured in any part with forced labor.” The new regulation will apply on any merchandise imported on or after Feb. 3, according to the notice.
The CBP nod and a lifting of the yearlong ban could give some reprieve to Malaysia’s palm oil and rubber-glove industries that have faced intense scrutiny in recent years over allegations of migrant worker abuse.
While the US is not a major customer for the company, the ban was a risk to its reputation and damped investor sentiment. It spurred Cargill Inc., one of the world’s top agricultural traders, to stop purchasing products from Sime Darby. There was also concern other buyers, especially in Europe, would follow suit.
The CBP statement drove a slump in US prices of soybean oil, palm’s closest substitute, on expectations of stiffer competition between the two edible oils. Benchmark palm oil futures rallied to close 2.7% higher in Kuala Lumpur on Friday, while shares of Sime Darby fell. BNNBloomberg
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Sime Darby Plantation’s palm oil imports to United States given the greenlight after review by US Customs
Petaling Jaya, 3 February 2023 - The United States Customs and Border Protection (USCBP) has modified its forced labour finding against Sime Darby Plantation Berhad (SDP), which means, effective immediately, the USCBP will now permit the importation of palm oil from SDP into the United States.
With this decision, the USCBP has recognised the comprehensive process undertaken by SDP in the last two years to review, revise and – where necessary – upgrade its protocols for recruiting, managing and working with its workers.
Mohamad Helmy Othman Basha, Group Managing Director of Sime Darby Plantation, commented: “This exercise has been hugely valuable in establishing a market-leading approach to ensure our employees feel safe, satisfied, supported and fairly treated.”
Recognising the comprehensive effort to implement change across SDP’s Malaysian operations, led by Chief Financial Officer Renaka Ramachandran and overseen by its Board Sustainability Committee, Mohamad Helmy said: “It took us more than 500,000 man-hours to undertake our reviews and to revise what we already had in place. To ensure change is embraced and entrenched, we also put in place key enablers to empower our workers. It is essential that such safeguards are in place to protect those who are vulnerable.”
SDP introduced a number of industry firsts as part of its renewed commitments. These include: Sime Darby Plantation
U.S. lifts import ban on Sime Darby Plantation products
KUALA LUMPUR, Feb 3 (Reuters) - U.S. customs authorities on Friday lifted a two-year import ban on palm oil products made by Malaysia's Sime Darby Plantation (SIPL.KL), after determining the goods were no longer produced with forced labour.
Goods produced by Sime Darby Plantation, the world's largest palm oil company by land size, have since December 2020 been blocked by U.S. Customs and Border Protection (CBP) from entering the United States over suspected abusive labour practices.
In response, Sime Darby Plantation appointed an ethical trade consultancy to audit its facilities, and last year set aside about $20 million to compensate current and former migrant workers who paid recruitment fees to secure jobs at the firm.
In a notice published on the U.S. Federal Register website on Friday, CBP said it had now "determined that the products were no longer being mined, produced, or manufactured wholly or in part with the use of convict, forced, or indentured labor by Sime Darby Plantation", citing additional information it had received. Reuters
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Read the official decision to lift the WRO against Sime Darby Plantations here.
SUMMARY:
On January 28, 2022, U.S. Customs and Border Protection (CBP), with the approval of the Secretary of the Department of Homeland Security, issued a Finding that certain palm oil and derivative products made wholly or in part with palm oil produced by Sime Darby Plantation Berhad, its subsidiaries, and joint ventures, were being produced with the use of forced labor, and were being, or were likely to be, imported into the United States. CBP has now determined, based upon additional information, that such merchandise is no longer being produced with the use of forced labor in violation of section 307 of the Tariff Act of 1930, as amended. Federal Register.gov
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February 03, 2023
US Clears Biggest Oil Palm Grower of Forced Labor Charges
(Bloomberg) -- The US Customs said Sime Darby Plantation Bhd., the world’s largest oil palm grower, was found to no longer be using forced labor, allowing the country to restart imports from the Malaysian company.
Palm oil and related products linked to Sime Darby were banned from entering the US since January 2022 on findings of forced labor. Since then, the company has provided additional information, and the US Customs and Border Protection said Thursday it has satisfactory evidence to believe that the products are “no longer mined, produced, or manufactured in any part with forced labor.” The new regulation will apply on any merchandise imported on or after Feb. 3, according to the notice.
The CBP nod and a lifting of the yearlong ban could give some reprieve to Malaysia’s palm oil and rubber-glove industries that have faced intense scrutiny in recent years over allegations of migrant worker abuse.
While the US is not a major customer for the company, the ban was a risk to its reputation and damped investor sentiment. It spurred Cargill Inc., one of the world’s top agricultural traders, to stop purchasing products from Sime Darby. There was also concern other buyers, especially in Europe, would follow suit.
The CBP statement drove a slump in US prices of soybean oil, palm’s closest substitute, on expectations of stiffer competition between the two edible oils. Benchmark palm oil futures rallied to close 2.7% higher in Kuala Lumpur on Friday, while shares of Sime Darby fell. BNNBloomberg
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Sime Darby Plantation’s palm oil imports to United States given the greenlight after review by US Customs
Petaling Jaya, 3 February 2023 - The United States Customs and Border Protection (USCBP) has modified its forced labour finding against Sime Darby Plantation Berhad (SDP), which means, effective immediately, the USCBP will now permit the importation of palm oil from SDP into the United States.
With this decision, the USCBP has recognised the comprehensive process undertaken by SDP in the last two years to review, revise and – where necessary – upgrade its protocols for recruiting, managing and working with its workers.
Mohamad Helmy Othman Basha, Group Managing Director of Sime Darby Plantation, commented: “This exercise has been hugely valuable in establishing a market-leading approach to ensure our employees feel safe, satisfied, supported and fairly treated.”
Recognising the comprehensive effort to implement change across SDP’s Malaysian operations, led by Chief Financial Officer Renaka Ramachandran and overseen by its Board Sustainability Committee, Mohamad Helmy said: “It took us more than 500,000 man-hours to undertake our reviews and to revise what we already had in place. To ensure change is embraced and entrenched, we also put in place key enablers to empower our workers. It is essential that such safeguards are in place to protect those who are vulnerable.”
SDP introduced a number of industry firsts as part of its renewed commitments. These include: Sime Darby Plantation
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February 02, 2023
German plans to end crop-based biofuels would hit farmers and cut rapeseed output
Proposals by the German government to end crop-based biofuel production would severely hit farmers and reduce rapeseed output, Thomas Mielke, CEO of Hamburg-based oilseeds analysts Oil World was quoted as saying in a Reuters report.
Reduced oilseed crushing in Germany would reduce domestic protein deficit for animal feed and lead to increased imports of soyabeans and soyabean meal, Mielke said on 25 January.
Germany’s environment minister Steffi Lemke has proposed ending crop-based biofuel production in stages by 2030.
The country’s programme to cut greenhouse gases (GHGs) includes the use of blending biofuels including biodiesel and bioethanol with fossil diesel and gasoline to reduce road vehicles emissions. Oil companies have a greenhouse gas reduction target which they can partly fulfil with biodiesel, which is often made from rapeseed oil or waste vegetable oils and bioethanol often produced from grains.
About half of Germany's rapeseed crop, which totalled 3.7M tonnes last year, is used to produce biodiesel, according to the report, with about 3M tonnes of biodiesel blended with fossil diesel in the country each year.
“This proposal could generate changes in trade flows with more German rapeseed oil going for export,” Mielke said. “There would also be a reduction in rapeseed cultivation by farmers. OFI Magazine
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US department awards $118 million to accelerate domestic biofuel production
The US Department of Energy (DoE) announced $118 million (€108 million) in funding for 17 projects to accelerate the production of sustainable biofuels for America’s transportation and manufacturing needs.
The selected projects, located at universities and private companies, will drive the domestic production of biofuels and bioproducts by advancing biorefinery development, from pre-pilot to demonstration, to create sustainable fuels that reduce emissions associated with fossil fuels.
Funding for this opportunity supports President Biden’s goals to deliver an equitable, clean energy future, and put the US on a path to achieve net-zero emissions, economy-wide, by no later than 2050.
Projects selected as part of this funding opportunity will contribute to meeting DoE’s goal to achieve cost-competitive biofuels and at least a 70% reduction in greenhouse gas (GHG) emissions by 2030.
“Biofuels are a versatile tool because they have the immediate potential to power our ships, trains, airlines and heavy-duty vehicles—a huge contributor to total carbon emissions—with a significantly reduced carbon footprint,” said US Secretary of Energy Jennifer Granholm. “DoE investments are helping to build out a domestic bioenergy supply chain that increases America’s energy independence, creates jobs, and accelerates the adoption of cleaner fuels for our transportation needs.” Biofuels News
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Malaysia-Climate change: Towngas offshoot turns waste oil into green fuels in China and Malaysia to meet strong European demand
Ecoceres, a unit of local gas distributor Hong Kong and China Gas (Towngas), will soon start building a second plant to turn waste oil into low-carbon fuel for aircraft and vehicles, tapping strong demand for such fuels in Europe.
The European Union has promoted green fuel adoption via regulation in recent years to meet its climate-mitigation ambitions, which has created ample opportunities for Ecoceres, said CEO Philip Siu Kam-shing.
“Now that our first plant in China is performing well, we are designing our second plant in Malaysia, which will soon proceed to the construction phase,” he told the Post. “Our aspiration is to become a global decarbonisation-solutions provider.”
The planned plant in Johor Bahru, Malaysia, near Singapore, will be able to produce 350,000 tonnes of low-carbon transportation fuel a year from used cooking oil and waste water from palm-oil mills. SCMP
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WHO warning a boon for palm oil
LETTER: IT was in the early 1990s when it became clear that trans fat was the real culprit behind the rise in cardiovascular diseases around the world. Prior to that, saturated fats were always the bad boy.
When scientists found out that trans fat was more deleterious, the news shocked the world's oils and fats trade.
The United States' Food and Drug Administration took some time before it came out with the necessary labelling rulings to warn consumers. There was hesitation in some countries, which fear the repercussions on the local edible fats business.
The best practice on eliminating trans fat means either a mandatory national limit of 2g of industrially produced trans fat per 100g of total fat in all foods, or a national ban on the production or use of partially hydrogenated oils, which are a major source of trans fat. New Straits Times
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German plans to end crop-based biofuels would hit farmers and cut rapeseed output
Proposals by the German government to end crop-based biofuel production would severely hit farmers and reduce rapeseed output, Thomas Mielke, CEO of Hamburg-based oilseeds analysts Oil World was quoted as saying in a Reuters report.
Reduced oilseed crushing in Germany would reduce domestic protein deficit for animal feed and lead to increased imports of soyabeans and soyabean meal, Mielke said on 25 January.
Germany’s environment minister Steffi Lemke has proposed ending crop-based biofuel production in stages by 2030.
The country’s programme to cut greenhouse gases (GHGs) includes the use of blending biofuels including biodiesel and bioethanol with fossil diesel and gasoline to reduce road vehicles emissions. Oil companies have a greenhouse gas reduction target which they can partly fulfil with biodiesel, which is often made from rapeseed oil or waste vegetable oils and bioethanol often produced from grains.
About half of Germany's rapeseed crop, which totalled 3.7M tonnes last year, is used to produce biodiesel, according to the report, with about 3M tonnes of biodiesel blended with fossil diesel in the country each year.
“This proposal could generate changes in trade flows with more German rapeseed oil going for export,” Mielke said. “There would also be a reduction in rapeseed cultivation by farmers. OFI Magazine
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US department awards $118 million to accelerate domestic biofuel production
The US Department of Energy (DoE) announced $118 million (€108 million) in funding for 17 projects to accelerate the production of sustainable biofuels for America’s transportation and manufacturing needs.
The selected projects, located at universities and private companies, will drive the domestic production of biofuels and bioproducts by advancing biorefinery development, from pre-pilot to demonstration, to create sustainable fuels that reduce emissions associated with fossil fuels.
Funding for this opportunity supports President Biden’s goals to deliver an equitable, clean energy future, and put the US on a path to achieve net-zero emissions, economy-wide, by no later than 2050.
Projects selected as part of this funding opportunity will contribute to meeting DoE’s goal to achieve cost-competitive biofuels and at least a 70% reduction in greenhouse gas (GHG) emissions by 2030.
“Biofuels are a versatile tool because they have the immediate potential to power our ships, trains, airlines and heavy-duty vehicles—a huge contributor to total carbon emissions—with a significantly reduced carbon footprint,” said US Secretary of Energy Jennifer Granholm. “DoE investments are helping to build out a domestic bioenergy supply chain that increases America’s energy independence, creates jobs, and accelerates the adoption of cleaner fuels for our transportation needs.” Biofuels News
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Malaysia-Climate change: Towngas offshoot turns waste oil into green fuels in China and Malaysia to meet strong European demand
- Profitable Hong Kong start-up Ecoceres plans to build a second plant to turn waste oil into low-carbon fuel for aircraft and vehicles
- The planned plant in Malaysia will turn used cooking oil and waste from palm-oil mills into up to 350,000 tonnes of low-carbon fuel a year
Ecoceres, a unit of local gas distributor Hong Kong and China Gas (Towngas), will soon start building a second plant to turn waste oil into low-carbon fuel for aircraft and vehicles, tapping strong demand for such fuels in Europe.
The European Union has promoted green fuel adoption via regulation in recent years to meet its climate-mitigation ambitions, which has created ample opportunities for Ecoceres, said CEO Philip Siu Kam-shing.
“Now that our first plant in China is performing well, we are designing our second plant in Malaysia, which will soon proceed to the construction phase,” he told the Post. “Our aspiration is to become a global decarbonisation-solutions provider.”
The planned plant in Johor Bahru, Malaysia, near Singapore, will be able to produce 350,000 tonnes of low-carbon transportation fuel a year from used cooking oil and waste water from palm-oil mills. SCMP
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WHO warning a boon for palm oil
LETTER: IT was in the early 1990s when it became clear that trans fat was the real culprit behind the rise in cardiovascular diseases around the world. Prior to that, saturated fats were always the bad boy.
When scientists found out that trans fat was more deleterious, the news shocked the world's oils and fats trade.
The United States' Food and Drug Administration took some time before it came out with the necessary labelling rulings to warn consumers. There was hesitation in some countries, which fear the repercussions on the local edible fats business.
The best practice on eliminating trans fat means either a mandatory national limit of 2g of industrially produced trans fat per 100g of total fat in all foods, or a national ban on the production or use of partially hydrogenated oils, which are a major source of trans fat. New Straits Times
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February 01, 2023
What does Europe’s deforestation law mean for palm oil? RSPO talks challenges and opportunities
A political agreement has been reached on the European Union’s due diligence legislation, and sustainable palm oil organisation Responsible Sourcing of Palm Oil (RSPO) is supportive. Yet challenges and risks exist, explains Ruben Brunsveld, deputy director of EMEA. Food Navigator Europe
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Malaysia, Indonesia to continue collaboration to counter palm oil criticism, says Fadillah
BANGI (Jan 31): Malaysia will continue to collaborate with Indonesia to counter the European Union’s (EU) criticism against palm oil, said Deputy Prime Minister and Plantation and Commodities Minister Datuk Seri Fadillah Yusof.
He said Malaysia and Indonesia will talk about the laws which ban the sale of palm oil and other commodities linked to deforestation unless importers can demonstrate that their production of goods does not involve deforestation.
“The collaboration strategy with Indonesia to counter the anti-palm oil campaign is seen to be able to put pressure on the EU.
"The Council of Palm Oil Producing Countries will also formulate a strategy to put pressure on the EU, so that Malaysia and Indonesia are not bullied,” he said.
Speaking at the Malaysian Palm Oil Board's (MPOB) Excellence Awards ceremony 2022 here on Tuesday (Jan 31), Fadillah noted that palm oil producing countries must agree on how to handle global issues, so that objections to palm oil discrimination can be made in a unified, effective and firm manner. The Edge Markets
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Doppa raises deep concern about EU directive over commodity imports
KUCHING (Jan 31): The Sarawak Dayak Oil Palm Planters Association (Doppa) is calling upon the government to intervene in the matter pertaining to the European Union (EU)’s Deforestation Regulations in its Corporate Sustainability Due Diligence Directive (CSDDD), which is said to be excluding the Dayak oil palm farmers from the EU market.
In this regard, Doppa president Napolean Ningkos expresses his concern about CSDDD, which he claims is threatening to remove the state-approved right for indigenous land use, under ‘a green pretext of saving forests in tropical countries’.
“It is making its way up to the legislative chain in the EU, and is expected to become legally binding for all companies that import goods into the EU.
“The core purpose of CSDDD is to ensure that European imports do not cause deforestation in countries that produce palm oil, cocoa, coffee, rubber and other commodities,” he said in a statement.
Napolean, who had just attended a session with European Members of the Parliament, Heidi Hautala and Christophe Hansen in Brussels, said as indigenous people, the Dayaks have the right to develop their ancestral lands as approved by the Sarawak government under the Native Territorial Domain (NTD) of Sarawak Land Code. The Borneo Post
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India-Nagaland govt and Patanjali Foods Ltd. sign MoU on palm oil cultivation
Nagaland government and Patanjali Foods Limited have signed a Memorandum of Understanding (MoU) for development and area expansion under palm oil cultivation and processing for Zone-II (Mokokchung, Longleng and Mon districts) of Nagaland under the National Mission on Edible Oils-Oil Palm (NMEO-OP).
The MoU was signed by the Director of Agriculture, Nagaland, M Ben Yanthan, and Patanjali Foods Ltd Head-NE Region, Oil Palm Subhas Bhattacharjee at the Directorate of Agriculture, Kohima on January 31.
According to Patanjali Foods Ltd, the signing of MoU with the Government of Nagaland will certainly bring a big boost for the oil palm growers in the state of Nagaland and the region. Patanjali Foods Ltd is already working in the states of Mizoram, Arunachal Pradesh, Assam and Tripura in the North East. NewsonAir.gov.in
What does Europe’s deforestation law mean for palm oil? RSPO talks challenges and opportunities
A political agreement has been reached on the European Union’s due diligence legislation, and sustainable palm oil organisation Responsible Sourcing of Palm Oil (RSPO) is supportive. Yet challenges and risks exist, explains Ruben Brunsveld, deputy director of EMEA. Food Navigator Europe
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Malaysia, Indonesia to continue collaboration to counter palm oil criticism, says Fadillah
BANGI (Jan 31): Malaysia will continue to collaborate with Indonesia to counter the European Union’s (EU) criticism against palm oil, said Deputy Prime Minister and Plantation and Commodities Minister Datuk Seri Fadillah Yusof.
He said Malaysia and Indonesia will talk about the laws which ban the sale of palm oil and other commodities linked to deforestation unless importers can demonstrate that their production of goods does not involve deforestation.
“The collaboration strategy with Indonesia to counter the anti-palm oil campaign is seen to be able to put pressure on the EU.
"The Council of Palm Oil Producing Countries will also formulate a strategy to put pressure on the EU, so that Malaysia and Indonesia are not bullied,” he said.
Speaking at the Malaysian Palm Oil Board's (MPOB) Excellence Awards ceremony 2022 here on Tuesday (Jan 31), Fadillah noted that palm oil producing countries must agree on how to handle global issues, so that objections to palm oil discrimination can be made in a unified, effective and firm manner. The Edge Markets
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Doppa raises deep concern about EU directive over commodity imports
KUCHING (Jan 31): The Sarawak Dayak Oil Palm Planters Association (Doppa) is calling upon the government to intervene in the matter pertaining to the European Union (EU)’s Deforestation Regulations in its Corporate Sustainability Due Diligence Directive (CSDDD), which is said to be excluding the Dayak oil palm farmers from the EU market.
In this regard, Doppa president Napolean Ningkos expresses his concern about CSDDD, which he claims is threatening to remove the state-approved right for indigenous land use, under ‘a green pretext of saving forests in tropical countries’.
“It is making its way up to the legislative chain in the EU, and is expected to become legally binding for all companies that import goods into the EU.
“The core purpose of CSDDD is to ensure that European imports do not cause deforestation in countries that produce palm oil, cocoa, coffee, rubber and other commodities,” he said in a statement.
Napolean, who had just attended a session with European Members of the Parliament, Heidi Hautala and Christophe Hansen in Brussels, said as indigenous people, the Dayaks have the right to develop their ancestral lands as approved by the Sarawak government under the Native Territorial Domain (NTD) of Sarawak Land Code. The Borneo Post
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India-Nagaland govt and Patanjali Foods Ltd. sign MoU on palm oil cultivation
Nagaland government and Patanjali Foods Limited have signed a Memorandum of Understanding (MoU) for development and area expansion under palm oil cultivation and processing for Zone-II (Mokokchung, Longleng and Mon districts) of Nagaland under the National Mission on Edible Oils-Oil Palm (NMEO-OP).
The MoU was signed by the Director of Agriculture, Nagaland, M Ben Yanthan, and Patanjali Foods Ltd Head-NE Region, Oil Palm Subhas Bhattacharjee at the Directorate of Agriculture, Kohima on January 31.
According to Patanjali Foods Ltd, the signing of MoU with the Government of Nagaland will certainly bring a big boost for the oil palm growers in the state of Nagaland and the region. Patanjali Foods Ltd is already working in the states of Mizoram, Arunachal Pradesh, Assam and Tripura in the North East. NewsonAir.gov.in
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CSPO Watch. February 2023