Headline News on Palm Oil. January 2021

Read curated news that impacts the palm oil industry globally.
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Indonesian envoy wants Colombia to join CPOPC
Malang, East Java (ANTARA) - Indonesian Ambassador to Colombia, Antigua and Barbuda, Saint Cristopher and Nevis, Dr. Priyo Iswanto, M.H., wants Colombia to join the Council of Palm Oil Producing Countries (CPOPC) to help counter negative campaigns against palm oil.

"We believe the induction of Colombia (into the council) will be able to strengthen the CPOPC and lend support to counter the black campaign against global palm oil," he said on the sidelines of a scientific orientation on his being awarded a doctorate (honoris causa) degree by the Muhammadiyah University in Malang (UMM) on Saturday.

Despite an agreement between ASEAN and the European Union on the issue of palm oil linked to sustainable development goals (SDGs), palm oil producing countries still need to step up positive campaigns to counter “black campaigns”, he stated. AntaraNews

Malaysia draws battles lines with EU over palm oil, focusing on public relations blitz
Even as Malaysia struggles to contain a pandemic that has wrought significant damage on its economy, it now faces a potentially greater fiscal challenge: defending its main cash crop – the oil palm – against European Union efforts to stifle the consumption of palm oil-based biofuels.

But in order to win the battle and safeguard its status as the world’s second-largest producer of palm oil, Malaysia must first make a more persuasive argument for its continued use as a sustainable product, which analysts said it could do by clearing up misperceptions surrounding the industry and opting for a more forward-looking public relations strategy. SCMP

China becomes Malaysia’s largest trading partner for 12 consecutive year as bilateral trade grow in 2020
Malaysia’s trade with China registered positive growth in 2020 with record high export as China has continued to be Malaysia’s largest trading partner for the 12th consecutive year, said the Malaysian Ministry of International Trade and Industry on Saturday.

In announcing Malaysia’s trade performance in 2020, the ministry said China which has remained as Malaysia’s largest export destination, contributed 16.2 percent to Malaysia’s total exports in 2020.

Malaysia’s exports to China rose 12.5 percent year on year to 158.6 billion ringgit (about 39.23 billion U.S. dollars) in 2020, the highest value thus far, driven by higher exports of iron and steel products, other manufactures, electronics and electrical (E&E) products, manufactures of metal, palm oil and palm oil-based agriculture products, rubber products as well as paper and pulp products. MacauBusiness

India - India slashes base import price of crude palm oil by $36 per tonne
MUMBAI (Reuters) - India slashed the base import price of crude palm oil by $36 to $1,013 per tonne, the government said in a statement late on Friday.

The government revises base import prices of edible oils, gold and silver every fortnight and the price is used to calculate the amount of tax an importer needs to pay.

The world’s biggest edible oil importer has levied 27.5 percent duty on crude palm oil imports.​ REUTERS

India - REUTERS Exclusive: India could unveil plan to boost oilseeds output, cut veg oil imports - sources
NEW DELHI (Reuters) - India is likely to announce a five-year plan to cut expensive vegetable oil imports worth $10 billion a year in next week’s federal budget by providing farmers with financial incentives to switch to oilseeds from grains, said three senior government officials.

Higher oilseed production in India, the world’s biggest buyer of cooking oils, will cut palm oil imports from Malaysia and Indonesia and trim soyoil and sunflower oil purchases from Brazil, Argentina, Russia and Ukraine.​ REUTERS

Malaysia - ​Expert calls for 5-year plan to beat labour shortage in oil palm estates
PETALING JAYA: A palm oil analyst says Putrajaya needs to rectify its labour market policy to address the manpower shortage faced by the palm oil industry.

Sathia Varqa, owner of Singapore-based Palm Oil Analytics, called for a systematic five-year plan to adequately address the labour shortage faced by the industry for the long term.

He told FMT the industry was not the only one facing manpower shortage, and pointed out that Malaysia faced a labour market policy issue and “not a labour shortage one”. FreeMalaysiaToday

Indonesia urged to resolve palm oil conflicts in West Kalimantan
JAKARTA (The Jakarta Post/ANN): Researchers have urged authorities in West Kalimantan to develop better schemes to resolve conflicts surrounding the palm oil business as the region has been marred by decades of unsolved conflicts and ineffective resolution mechanisms.

About 66 per cent of conflicts related to palm oil in West Kalimantan in the last two decades have yet to be resolved, according to a report recently issued by the Royal Netherlands Institute of Southeast Asian and Caribbean Studies (KITLV).

Moreover, most conflicts took an average of five years to be resolved.​ TheStarMY

Switzerland - ​Indonesia’s palm oil angers Swiss anti-globalisation activists
A free trade agreement between Switzerland and Indonesia has been challenged to a nationwide vote. The controversy focuses on the production and imports of palm oil.

The latest ballot is scheduled for March 7 alongside two other issues.

This is only the second time in 50 years that Swiss voters are having the final say on a free trade agreement. Switzerland is among the first countries in Europe to seek preferential trade relations with the leading economy in south-east Asia.

​What's at stake? SwissInfo

Indonesia - ​Minister reveals decades-long permit data for business sectors, social forestry
JAKARTA (FORESTHINTS.NEWS) - Indonesian Environment and Forestry Minister Siti Nurbaya has revealed a detailed dataset showing the state forest areas for which permits were granted for palm oil, pulpwood, logging and mining concessions, as well as for social forestry development, during the 1970-2020 period. 
She said that a more comprehensive understanding of this decades-long permit dataset is needed, in light of efforts being made by President Joko “Jokowi” Widodo’s administration to place a much greater emphasis on social forestry schemes.
Minister Nurbaya delivered these points in a virtual discussion (Jan 25), followed by written communication (Jan 26), with FORESTHINTS.NEWS.

Indonesia - ​Indonesian groups to sue Widodo over deadly flood
Civil society groups are to launch a class-action lawsuit against Indonesian President Joko Widodo and the South Kalimantan governor following recent floods that left 24 people dead and thousands homeless.  

The Clean Indonesia coalition, which includes the Young Lawyers Committee, Indonesian Mining Advocacy Network and Indonesian Forum for the Environment, say Widodo and Sahbirin Noor should be held accountable for the disaster. UCA News

ASEAN - ​Turkey to Forge Closer Ties with ASEAN and Asia
Turkey is seeking to enhance ties with ASEAN and the Asia Pacific region to potentially help revive its economy, plagued by prolonged high inflation, widening deficits, as well as the pandemic.

The Turkish lira lost 20 percent of its value in 2020 alone and the country’s trade deficit widened to US$49.9 billion last year. Furthermore, Turkey’s largest investors, the EU and US, have imposed sanctions on the country, due to its assertive approach to gas exploration in the Mediterranean, as well as the purchase of a Russian made S-400 missile defense system.​ AseanBriefing

US - ​Biden faces the world: 5 foreign policy experts explain US priorities – and problems – after Trump
Editor’s note: President Joe Biden inherits from Donald Trump a United States that was simultaneously isolated from the rest of the world and openly hostile toward parts of it. Biden – an internationally minded leader who has longstanding relationships with world leaders – has already begun to rejoin treaties and alliances abandoned by Trump.

Dire domestic crises will keep Biden’s attention focused on home, at least early in his administration, but he says the U.S. is “ready to lead the world.” Here, experts assess the state of American relations with a world left skeptical of American leadership. TheConversation

US - ​Up-trending farming and landscape disruptions threaten Paris climate agreement goals
Irvine, Calif., Jan. 27, 2021 — One of President Joe Biden’s first post-inauguration acts was to realign the United States with the Paris climate accord, but a new study led by researchers at the University of California, Irvine demonstrates that rising emissions from human land-use will jeopardize the agreement’s goals without substantial changes in agricultural practices.

In a paper published today in Nature, the team presented the most thorough inventory yet of land-use contributions to carbon dioxide and other greenhouse gases (including nitrous oxide and methane) from 1961 to 2017, taking into account emissions from agricultural production activities and modifications to the natural landscape. UCI News

Malaysia - ​FGV’s Delima Oil Products expands downstream segment
KUALA LUMPUR: FGV Holdings Bhd (FGV) has set its sights on expanding its downstream segment through value-added offerings to the Asia-Pacific region with more new plant-based industrial products.

It said on Wednesday its subsidiary, Delima Oil Products Sdn Bhd’s (DOPSB) is introducing three products under the Premeo brand -- animal fat replacer, dairy fat replacer and frying oil.

FGV said these products are specially formulated as healthier plant-based alternative fats for food and dessert manufacturers, as well as for industrial use such as heavy-duty deep frying for quick service restaurants. TheStarMY

Ghana to become regional top performer in palm oil production
Ghana will displaced Ivory Coast to become the lead exporter and earner of palm oil production in West-Africa for the next five years, according to Bloomberg and Fitch Solutions.

Ghana’s palm oil production will increase by an average of 4.4% year-on-year from 2021 to 2025, with the growth rate increasing at the end of that period.

This means the nation will dislodge Ivory Coast as the regional top performer.​ MyJoyOnline

Malaysia - CGS-CIMB in favour of accepting Felda's takeover offer for FGV shares
KUALA LUMPUR (Jan 25): CGS-CIMB is in favour of FGV Holdings Bhd’s shareholders accepting the takeover offer by the Federal Land Development Authority (Felda).

It said in the past, the share price of the plantation company was boosted by media reports of a potential takeover offer by Tan Sri Syed Mokhtar Albukhary, which led to the expectation that the stock could re-rate closer to its fair value back then.

“However, following recent developments and Felda’s more than 50% control over FGV, a competing offer for FGV is unlikely. TheEdgeMarkets

Malaysia - ​Labour shortage poses more threats to palm oil sector
THE labour shortage issue inherent in the plantation sector is posing more threat to the industry’s economic health compared to the price volatility of the crude palm oil (CPO), according to Khazanah Research Institute (KRI).

KRI had conducted a study titled “Implications of the Dominant Shift to Industrial Crops in Malaysia: System Dynamic Model of Industrial Crops”, which found a labour reduction of 30% from the current level will see the vegetable oil’s production reduced by half. TheMalaysianReserve

Malaysia - Organised smallholders achieved full MSPO certification by end-2020
KUALA LUMPUR (Jan 26): The implementation of Malaysian Sustainable Palm Oil (MSPO) certification for organised smallholders had been fully achieved by the end of 2020, the Malaysian Palm Oil Board (MPOB) said.

It said the certification carried out with the involvement of eight federal and state government agencies entailed the participation of 233,191 smallholders with total oil palm cultivated areas of ​​724,633.32 hectares.

The agencies involved are the Federal Land Development Authority (FELDA) with a total cultivated area of ​​472,023.91 hectares (100,060 people), Federal Land Consolidation and Rehabilitation Authority (138,816.32 hectares; 89,440 people), and Rubber Industry Smallholders Development Authority (​​25,973.89 hectares; 14,389 people).​ TheEdgeMarkets

China’s Appetite for Palm Oil Set to Slide to Three-Year Low
(Bloomberg) -- Palm oil’s bull run will face more headwinds in the coming year as leading importer China buys increasing amounts of soybeans to power an aggressive expansion of the country’s hog industry.

The world’s biggest pork producer and consumer is scooping up unprecedented quantities of soybeans and corn on world markets to feed domestic hog herds that are rebounding after being devastated by African swine fever.

The crushing of beans produces not only meal, a component of livestock feed, but also oil, palm’s top rival in the food and biofuel industry. Those increased supplies now threaten China’s purchases of palm oil just two years after they surged to a record when a U.S.-China trade war curbed imports of beans. BNNBloomberg

Malaysia - ​Palm oil remains a powerhouse despite conservation narratives — MPOB
KUALA LUMPUR (Jan 22): Palm oil will continue to be the powerhouse of the oils and fats market despite the conservation narratives focused on specific themes such as tropical deforestation and misleading anti-palm oil campaigns, the Malaysian Palm Oil Board (MPOB) said.

It said palm oil was statistically the largest produced vegetable oil in 2020 at about 31% of the world’s 235.4 million tonnes of oils and fats production, compared with 25% for soybean oil and 11% for rapeseed oil.

“From frying oils to shortenings in baking, palm oil is used in various products as it is the only vegetable oil that naturally semi-solid at room temperatures with a balanced content of saturated and unsaturated fatty acids (about 1:1),” it said in a statement today. TheEdgeMarkets

Dubai - ​University in Dubai on a mission to turn palm waste into biofuel
A university in Dubai is embarking on a project to turn the waste of the region’s vast palm tree crop into sustainable and cost-effective biofuel.

Rochester Institute of Technology (RIT) Dubai is collaborating with a Saudi-based engineering group, Jubail Pearl, to produce and commercialise biofuel production from oil-palm and palm-oil wastes.

Over the last decades, the palm oil industry has been growing rapidly due to increasing demands for food, cosmetic and hygienic products. Tapping into such opportunities, the UAE has been leveraging its abundant renewable resources and partnering with global companies to reduce its carbon footprint. KhaleejTimes

Indonesia - ​BPDP-KS aims to achieve 2021 palm oil plantation rejuvenation target
"The target of small-scale plantation rejuvenation in 2021 would cover 180 thousand hectares of area, with funding allocation of Rp5.567 trillion," Chief of BPDP-KS' Steering Committee, Airlangga Hartarto, stated here on Saturday.

The agency will also support the implementation of the B30 biodiesel mandatory policy in 2021, Hartarto who concurrently the coordinating minister for economic affairs, remarked. AntaraNews

Indonesia - ​Illegal forest-zone oil palm in Indonesia
Researchers have identified oil palms growing where they shouldn’t be. Discussions are underway about what to do about them.

Oil palm is many things to many people. For example, perhaps most basically, it is considered an agricultural crop even though as a woody perennial it could be called a tree. It is native to African forests not the tropical rainforests of Southeast Asia yet it has been planted on millions of hectares throughout the tropics.​ WorldAgroForestry

Malaysia - ​Oil palm planting halt in Sarawak for timber firms
KUCHING: Timber companies holding licences for planted forests (LPFs) are no longer permitted to carry out any new oil palm planting in the licensed areas with immediate effect.

The LPF holders failing to complete the new tree planting plan by 2025 may have the unplanted areas taken back by the state authorities for re-issuance of new LPFs to potential investors.

These new rulings are part of the “Revised policy direction on industrial forest plantation in Sarawak” from the state Urban Development and Natural Resources Ministry. Details of the revised policy are published in the latest issue of Perkasa, a quarterly newsletter of the Sarawak Timber Industry Development Corp (STIDC).​ TheStarMY

Indonesia/ Malaysia - ​US sanctions put Malaysian palm oil giants in a conundrum
Nevertheless, the CBP ban still places the two companies — and Malaysian palm oil on a whole — in a conundrum due to severe reputational risks as a result of the ban.

“The ban by the US CBP is severe because this is literally a ban by the US government. With the US being the world’s largest economy, its influence is far reaching and this could have an impact on Malaysia’s palm oil trade with some major export destinations such as India and Europe.

“If you look at a company like Sime Darby Plantation, it has major investments in Europe, especially in its downstream activities, and this ban could have huge implications for it as Europe is far more concerned about environmental, social and governance principles compared with the US,” a palm oil industry expert tells The Edge. TheEdgeMarkets

Indonesia/ Malaysia - Exclusive: Indonesia, Malaysia eye joint campaign in Europe to counter palm oil critics
KUALA LUMPUR (Reuters) - The world’s top producers of palm oil, Indonesia and Malaysia, are looking to join forces for the first time to run an advocacy campaign in Europe, where increasingly tight regulations are threatening sales in their third biggest market.

Through the platform of the Council of Palm Oil Producing Countries (CPOPC), the two countries have sent out a request for proposals to hire an advocacy firm to run a campaign in Europe this year to counter criticism, three sources familiar with the matter said. REUTERS

Malaysia - ​Malaysia takes WTO legal action against EU over palm biofuel curbs
KUALA LUMPUR (Reuters) - Malaysia is taking legal action at the global trade watchdog against the European Union and member states France and Lithuania for restricting palm oil-based biofuels, the government said.

The world’s second largest palm oil producer, which has called a EU renewable-energy directive “discriminatory action,” is seeking consultations under the World Trade Organization’s Dispute Settlement Mechanism, the Plantation Industries and Commodities Ministry said in a statement on Friday. REUTERS

Malaysia - ​MPOB develops three palm-based technologies for commercialisation
KUALA LUMPUR: The Malaysian Palm Oil Board (MPOB) has developed three advanced palm-based technologies for commercialisation.

In a statement on Friday, it said the first is the process and formulation of palm vitamin E/ tocotrienol-rich fraction (TRF) chewable tablet.

The second is palm oil-based polyol for floor coverings for indoor and outdoor and sports flooring markets while the third is a moisturising hand sanitiser with Vitamin E.

MPOB said the three are among the technologies approved by the Minister of Plantation Industries and Commodities for commercialisation.​ TheStarMY

Malaysia - ​Palm Set for Best Year Since 2011 With La Nina in Spotlight
Palm oil prices are set to have their best annual showing in a decade even as the coronavirus pandemic rages on.

Benchmark futures for the tropical oil, used in everything from cooking oil to shampoo, will average 3,200 ringgit ($791) a ton in 2021, the highest in a decade, according to the median of 23 estimates in a Bloomberg survey of analysts, traders and plantation executives, versus 2,700 ringgit last year.

A bullish cocktail of La Nina-linked flooding and shrinking inventories in Malaysia is bolstering the market, but prices may come under pressure in the second half as production of palm, as well as soybean oil, rebounds. Food and fuel demand is shrouded in uncertainty as the virus persists in key markets. Bloomberg

Thailand powers towards a Green Economy
When Somphote Ahunai returned to Bangkok after completing an MBA degree in the US, he had $200 left in the bank.

Today the renewable energy and electric vehicle company he founded has a market value of $5.6 billion and testifies to Thailand’s highly successful advance into green and sustainable industries.

After initially working as a securities trader, Somphote first entered the renewables business when he started producing biodiesel fuel from a palm oil plantation he had acquired. ​BangkokPost

Indonesia's Pertamina conducts trials on 100% palm oil biodiesel and jet fuel
JAKARTA, Jan 15 (Reuters) - Indonesia’s state energy company PT Pertamina said on Friday it had started trials on diesel made entirely out of palm oil at its Cilacap refinery on Java island after conducting trials on jet fuel late last year.

Pertamina begun the trials of the so-called “Green Diesel” on Jan. 9 and they will continue till Jan. 16, a Pertamina spokesman said in the statement. Trials for the jet fuel took place at the end of December.

“This trial will continue until it is ready and safe to use as fuel that can be used by the community,” spokesman Hatim Ilwan said. Reuters

PepsiCo tightens sustainability targets
PepsiCo is expected to achieve 100 per cent renewable electricity in Australia in 2021 as the global company commits to reducing its greenhouse gas emissions across its entire value chain by 40 per cent by 2030. 
In addition, the company has said it aims to achieve net-zero emissions by 2040, one decade earlier than state in the Paris Agreement. It plans to reduce GHG emissions across its direct operations by 75 per cent and its indirect value chain by 40 per cent by 2030.

“The severe impacts from climate change are worsening, and we must accelerate the urgent systemic changes needed to address it,” said PepsiCo Chairman and CEO Ramon Laguarta. FoodandDrinkBusiness 

Malaysia - ​Sime Darby Plantation still unclear over forced labour allegations
BROAD allegations of forced labour against Sime Darby Plantation Bhd (SDP) have made it difficult for the matter to be resolved as the claims are unclear.
Sime Darby Oils Sdn Bhd MD Mohd Haris Mohd Arshad (picture) said progress on addressing the allegations of forced labour made by non-profit group Liberty Shared has been slow as the claims were generic and do not leave room for SDP to improve the situation.
“The challenge we are facing right now is understanding in detail what we are being accused of as what has been revealed to us was very generic and did not give us much to work on. TheMalaysianReserve

Indonesia calls for more trade barriers with China to be removed
JAKARTA, Jan 13 (Reuters) - Indonesia’s foreign minister on Wednesday urged China to remove trade barriers for the country’s palm oil and other main export products in order to make trade between the two countries more balanced.

Minister Retno Marsudi made the comments in a joint statement with the Chinese government’s top diplomat, State Councillor Wang Yi.

Wang said he supported Indonesia’s plan to become a regional hub for the production of vaccines. ​Reuters

Indonesia/ Malaysia - Planters say anti-palm oil campaigns hinder sustainability shift
(Reuters) - Top palm oil producers said on Thursday that the industry is making strides towards transparency and sustainability across its supply chain despite campaigns against use of the oil.

Campaigners say that the industry is responsible for deforestation of tropical rainforests and human rights abuses and have initiated consumer boycotts of palm oil, which is found in everything from pizza to lipsticks.
However, such campaigns are hindering the industry’s efforts to achieve sustainability certification and develop a market for certified sustainable palm oil (CSPO), top palm oil producers said during the Reuters Next conference. Reuters

Malaysia - ​Biodiesel feedstocks face Malaysian lockdown squeeze
Malaysian used cooking oil (UCO) and palm oil mill effluent (POME) collections face potential curbs under new Covid-19 lockdown restrictions coming into effect today.

A movement control order (MCO) will be in place until at least 26 January in the states of Penang, Selangor, Malacca, Johor and Sabah, plus the federal territories of Kuala Lumpur, Putrajaya and Labuan. The states of Pahang, Perak, Negri Sembilan, Kedah, Terengganu and Kelantan are placed under a less stringent conditional MCO, while Perlis and Sarawak are under recovery MCO that only restricts interstate travel. ArgusMedia

US - Neste and Avfuel create strategic partnership for SAF
Neste and Avfuel Corporation have announced a strategic partnership to create a continuous supply of sustainable aviation fuel (SAF) in the US.
Neste will provide Avfuel with SAF in volumes able to meet the growing demands of its customers, including fixed base operators, airports, flight departments, original equipment manufacturers (OEMs) and commercial operators.
The partnership positions Avfuel as one of the first US companies able to supply its customers with SAF on a continuous basis. BiofuelsNews

Malaysia to file WTO lawsuit against EU on Jan 15, says minister
MALAYSIA will file its lawsuit against the European Union (EU) on the trade bloc’s policy of phasing out palm oil-based biofuel imports to the World Trade Organisation (WTO) on Jan 15.

Plantation Industries and Commodities Minister Datuk Dr Mohd Khairuddin Aman Razali said Malaysia will continue to fight against any discriminatory actions which pose a threat to the country’s economy and the livelihood of its people.

“The legal action is in the process. We have brought a memorandum to the Cabinet and it has agreed to take action against the EU for the latter’s plan to limit and phase out palm oil imports which we see as discriminatory.​ TheMalaysianReserve

India - ​Telangana begins work on oil palm plan
State govt in talks with bankers to find avenues to support farmers
Telangana, which is on a drive to promote oil palm acreage, has decided to set up a committee to calculate the cost of production to grow the edible oil plantation and ways to support the farmers.

The State government has also begun talks with the State-level bankers to find avenues to support the oil palm farmers financially. Telangana’s Agriculture Minister, S Niranjan Reddy, and Agriculture Commissioner Janardhan Reddy held discussions with the State-Level Bankers’ Committee to discuss ways to promote the oil-rich crop. TheHinduBusinessLine

Malaysia - ​Sime Darby Plantation strives to counter US allegations, restore its reputation
KUALA LUMPUR (Jan 12): Sime Darby Plantation Bhd (SDP) will strive to do its best to counter the allegations of forced labour in its production process and restore its reputation among its customers worldwide.

“We have (done) and we will do everything in our capacity to make sure that our reputation is restored,” Sime Darby Oils Sdn Bhd managing director Mohd Haris Mohd Arshad said in an interview with the BFM radio station today. TheEdgeMarkets

Malaysia - ​Malaysia postpones B20 biodiesel until December 2021
Malaysia is delaying the rolling out of it 20pc biodiesel mandate (B20) in transport by six months as Covid-19 cases continue to hit record highs in the country.

B20 will now likely be introduced in Sabah state in June and the rest of the country in December, according to Malaysian Palm Oil Board director-general Ahmad Parveez Ghulam Kadir speaking at the virtual Palm Oil Economic Review and Outlook Conference 2021. ArgusMedia

Malaysia - ​Robust ringgit set to leave positive trails in equity markets
KUALA LUMPUR: The robust ringgit is set to leave positive trails in the equity markets amid a weaker US dollar, as the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) rose 30.24 points to end the first week of 2021 at the day’s high of 1,633.19 on Friday.

The ringgit was traded as high as 3.9957 versus the US dollar on the first trading day of the year, and research firms believe the US dollar weakness would resume. TheSunDaily

Indonesia refined palm oil exports to rise in 2021 on tax changes
KUALA LUMPUR — Indonesia, the world’s biggest palm oil producer, will increase its refined palm oil exports after raising taxes, leaving Malaysia to become more competitive in crude palm oil (CPO) exports, a leading industry analyst said on Monday.

The reordering of palm oil trading follows Indonesia’s decision last month to raise the export levy to a progressive system of $55 to $255 per tonne of CPO, depending on price levels to generate funds for its palm-based biodiesel program. FinancialPost

Indonesia - ​Indonesia palm association says B40 biodiesel mandate may be delayed beyond 2022
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KUALA LUMPUR, Jan 7 - The Indonesian Palm Oil Association (GAPKI) on Thursday said government plans to roll out a B40 mandate that would require a 40% palm oil mix in domestic diesel could be delayed beyond the end of 2022.The world's top palm oil producer said in November its plans to raise the bio-content of palm oil-based biodiesel to 40% would likely not happen in 2021, and it increased export levies to finance its B30 programme after the COVID-19 pandemic triggered a collapse in crude oil prices. TodayOnline

Malaysia - ​Malaysia’s biodiesel mandate delayed to early 2022, prioritising economic recovery
MALAYSIA’S B20 biodiesel mandate will be delayed by about six months to early 2022, said Plantation Industries and Commodities Ministry secretary general Ravi Muthayah.

“Nationwide we are giving priority for the government’s post COVID-19 economic recovery plan, which is more crucial. We have limited resources and must identify priorities,” he said.

Earlier in the day, Indonesian Palm Oil Association (GAPKI) vice chairman Togar Sitanggang, who spoke at the virtual Malaysian Palm Oil Trade Fair and Seminar 2021 (POTS Digital 2021), confirmed that Indonesia’s plan to roll out the B40 mandate could be delayed beyond the end of 2022. FocusMalaysia

Indonesia - ​Health Security, Economic Recovery Among Indonesia's 2021 Diplomatic Priorities
Jakarta. Building resilient national health security and strengthening ties for economic recovery are among Indonesia’s five diplomatic priorities in 2021, according to Foreign Affairs Minister Retno Marsudi.

The minister kicked off 2021 by announcing Indonesia’s diplomatic agenda for the year ahead. With the Covid-19 pandemic still in full swing, it is no surprise the country’s first two diplomatic priorities are within the health and economy sectors.

“Our first [diplomacy priority] is building a self-sufficient and resilient national health security,” Retno said at the virtual annual year-end conference on Wednesday. JakartaGlobe

Malaysia - ​Exporters told to treat Indian palm oil refiners as comrades
Palm oil exporting countries have been asked to treat Indian palm oil refiners as comrades and not as adversaries.

Speaking at the CEO Forum of Palm Oil Trade Fair and Seminar 2021, which was organised by Malaysian Palm Oil Council on a digital platform, Atul Chaturvedi, President of the Solvent Extractors’ Association (SEA) of India, said exporters and importers need to start a campaign to promote guilt-free eating of palm oil by Indian consumers to get a bigger space in the Indian kitchens. TheHinduBusinessLine

Liberia - ​GVL Constructs Second Palm Oil Mill in Maryland County
The Management of Golden Veroleum Liberia (GVL) has announced that the company is currently constructing its second palm oil mill plant in Maryland County.

GVL’s Chief Executive Officer, Fredy Surya Handojo, who spoke to journalists at a press conference in Monrovia recently said the completion of the mill will enable them to boost the company’s capacity to employ more Liberians to work on the plant to provide engineering and administrative services. LiberianObserver

Malaysia - ​Weather, labour crunch set to dent global crude palm oil output, says analyst
KUALA LUMPUR (Reuters) - Weather disruption and labour shortages mean global palm oil production is unlikely to stay on trend to hit growth projections of more than 6 million tonnes this year, a leading sector analyst told a virtual conference on Wednesday.

“If you plot long-run growth in crude palm oil output, if it regains its trend, production will rise by nearly 1 million tonnes in Malaysia, 4.5 million tonnes in Indonesia,” James Fry said.​ Reuters

Malaysia - ​Forget the West, look to China, India, Africa, say palm oil industry players
PETALING JAYA: Palm oil experts say putting greater emphasis on biodiesel and expanding into markets such as India, China and Africa can be key drivers of growth for the sector.

Speaking at a digital forum on the industry, Lee Yeow Chor, the CEO of IOI Corporation Berhad, said Malaysia’s palm oil sector should look into producing high-value products and explore the renewable fuels market.

However, he said, as transporting large volumes to the US and Europe could be difficult and expensive and given the anti-palm oil sentiment in the West, Malaysia should look towards Asian economies. FreeMalaysiaToday

Malaysia - ​Higher blending mandate to help offset EU’s lower palm oil demand, says biodiesel association
KUALA LUMPUR, Jan 5 — A nimble push into higher biodiesel blends such as B40 — 40 per cent blend of palm oil-derived biodiesel — by Indonesia and B30 by Malaysia will help to mitigate the negative effects of the European Union’s (EU) lower palm oil demand for biofuel, the Malaysian Biodiesel Association said.

Deputy president Long Tian Ching said palm oil and palm biodiesel producers have to face the fact that exports to the EU would most likely be reduced at an accelerated pace, quicker than the EU Renewable Energy Directive (RED) II implementation. MalayMail

India - ​Telangana to cultivate oil palm in 8.5L acres in 4 yrs
Hyderabad: Agriculture Minister S Niranjan Reddy said that Telangana was proposed to take up oil palm cultivation in 8 lakh acres in the next four years. Speaking at the State Level Bankers Committee (SLBC) meet on oil palm here on Monday, he stressed the need to increase the cultivation of oil palm. He informed that the country was producing only 7 million tons of cooking oil as against 22 million tons of demand for its population.

The entire shortfall of 15 million tons was being imported from other countries to meet the demand. He informed that currently the oil palm was being cultivated at an extent of 8.25 lakh acres in the country with a crop yielding of 16.85 lakh metric tons of palm kernel and production of crude palm oil. He said supporting the increase in the palm oil cultivation was the need of the hour to save the spending of foreign exchange to import palm oil. TheHansIndia

Malaysia - ​MPOC: Palm oil production to increase to 19.6 million tonnes in 2021
KUALA LUMPUR (Jan 5): Total Malaysian palm oil production is expected to increase slightly by 200,000 tonnes to 19.6 million tonnes in 2021, versus 19.4 million tonnes a year ago, according to the Malaysian Palm Oil Council (MPOC).

However, this also means that the projected Malaysian palm oil production still fell short against 19.8 million tonnes in 2019.

Going into 2021, MPOC chief executive officer Datuk Dr Kalyana Sundram, in a virtual conference at the Palm Oil Trade Fair and Seminar 2021 today, said the palm oil global supply is expected to be affected by the La Nina weather pattern. TheEdgeMarkets

Malaysia - ​Stressing need for improved smallholder performance, palm oil expert suggests public-private partnership
KUALA LUMPUR (Jan 5): While smallholder farmers make up 40% of the global palm oil output, they only account for 8.8% of certified sustainable palm oil production (CSPO).

Solidaridad Network Asia Senior Adviser Teoh Cheng Hai, who pointed this out today, said independent smallholders in particular have been underperforming in terms of productivity and income.

At one level, certification by the Roundtable on Sustainable Palm Oil (RSPO) presents challenges for the smallholders in terms of legality, best management practices and traceability. TheEdgeMarkets

Malaysia - ​MPIC regrets US action to ban entry of Sime Darby’s palm oil
KUCHING: The Ministry of Plantation Industries and Commodities Industry (MPIC) has expressed regret and disapproval regarding the drastic action taken by the United States (US) to bar the entry of palm oil produced by Sime Darby Plantation Bhd (SDP) without giving the company an opportunity to defend itself.

Its minister, Datuk Dr Mohd Khairuddin Aman Razali, said while the US Customs and Border Protection (CBP) indeed had the right to issue a withhold release order (WRO) on palm oil exported by any party to the country, it disagreed for such action to be taken without allowing the company to prove whether the claim was baseless. BorneoPost

UK/ DRC - ​$76m in British aid lost as African project goes bust
A failed palm oil enterprise in one of the world’s poorest countries has blown more than $76 million of British aid.

The business, on disputed land in the Democratic Republic of Congo where there has been a record of human rights conflicts, has gone bankrupt. Its assets have been transferred to a privately owned entity, leaving Britain’s shareholding in the collapsed company worthless.

Sarah Champion, chairwoman of the international development committee, told The Times that MPs had repeatedly raised concerns over Britain’s investment and would now hold those responsible to account. TheTimes

Ethiopia - ​Nation imports USD48 million worth of edible oil every month
The federal government spends USD48 million every month to import edible oil, underscoring the pressing need for import substitution, Ministry of Trade & Industry said.

While import of edible oil is almost USD576 million annually, it accounts for almost five percent of the country’s imports, which stood at USD15 billion during the last fiscal year. 

“Local producers satisfy only 12 percent of oil consumption, while the rest is covered by imports,” said Melaku Alebel, Minister of Trade & Industry, mentioning the country needs 57.2 million liters of oil every month.

Currently, the government only imports 40 million liters of edible oil every month.​ TheReporterEthiopia

Malaysia - US Customs didn't give Sime Darby Plantation chance to defend itself against forced labour claims
Plantation Industries and Commodities Minister Datuk Dr Mohd Khairuddin Aman Razali said the ministry does not agree with the way the US government imposed a detention order on palm oil produced by Sime Darby Plantation Bhd over allegations of forced labour.

Mohd Khairuddin, in a statement today, acknowledged that the US Customs and Border Protection (CBP) has the right to issue a Withhold Release Order (WRO) against Sime Darby Plantation’s palm oil at all US ports of entry.

However, he said the ministry does not agree with the way it was done as the company was not given a chance to defend itself against the claims made. TheEdgeMarkets

Malaysia - ​Plantation company ensures safe repatriation of foreign workers
AS A direct result of the Covid-19 pandemic, millions of migrant workers globally have been stranded, either unable to travel to their home countries or return to the countries where they work.

With the closure of international borders and the imposition of national lockdowns, foreign workers in Malaysia’s palm oil sector have also been affected.

Recognising this, Sime Darby Plantation Bhd (SDP) has put the welfare of its workers to the forefront and is taking necessary steps to find equitable solutions.

It has been working closely with the authorities to find ways to facilitate and where possible, to expedite the repatriation exercise of its workers.​ TheStarMy

Nigeria - ​NEPC and Akwa Ibom government to partner on palm oil exports
The Nigerian Export Promotion Council (NEPC) has announced that it will partner with the Akwa Ibom State Government to develop and promote palm oil products for exports.

This was disclosed by the Executive Director and Chief Executive Officer, NEPC, Mr Olusegun Awolowo, in a meeting with stakeholders on building a palm oil value chain in Akwa Ibom, on Thursday.​ NairaMetrics

US - ​Sustainability claims may confuse consumers
KANSAS CITY — Surveys show people take a positive view of food companies that practice sustainability, and those companies continue to report progress in areas such as the environment and labor practices. Yet communicating the efforts to consumers still needs work.

The term ESG, which stands for environmental, social and governance factors, came up during a “climate week” virtual panel held Sept. 21. FoodBusinessNews