Palm Oil News - June 2024
For all the news on the global palm oil industry. June 2024
Makin' it easy for you to monitor developments in the palm oil industry
|
|
|
June 30, 2024
EU-ABC URGES RESUMING MALAYSIA-EU FTA, FOCUSES ON SEMICONDUCTORS OVER PALM OIL
KUALA LUMPUR, June 30 (Bernama) -- The Malaysia-European Union (EU) free trade agreement (FTA) should be revived, presenting extensive cooperation prospects beyond lingering palm oil disputes, notably in the semiconductor sector.
EU-ASEAN Business Council (EU-ABC) executive director Chris Humphrey highlighted Malaysia's aspiration to emerge as ASEAN's semiconductor leader, while the EU explores investment opportunities.
"Malaysia-EU trade has exceeded 50 million euros (1 euro = RM5.03), positioning Malaysia as one of the EU's top three trading partners in Southeast Asia.
"We would love to have a free trade agreement in place because it will help with not only tariff issues but also non-tariff barriers, government procurement and other related matters,” he told Bernama.
Humphrey emphasised that a Malaysia-EU FTA would boost European business confidence, showing that Malaysia is open to trade and investment.
He noted that while Malaysia aims to be Southeast Asia's semiconductor hub, Europe is always seeking new markets globally.
"I think that would be a good place for us to invest in, and with the FTA in place, I believe the numbers will be even better," he said.
Regarding palm oil disputes, Humphrey noted progress with a joint task force involving Indonesia, Malaysia, and the EU, and ongoing discussions on European deforestation regulations. More Bernama
--------
Enhanced incentive and regulatory frameworks needed in Ghana’s oil palm sector, study reveals
Proforest study has underscored the critical need for improved incentive and regulatory frameworks to unlock value chain opportunities in Ghana’s oil palm sector.
The research highlights the potential for creating jobs, protecting the environment, and enhancing rural development through prioritised research, land access, RSPO certification, and sustainable practices.
The study engaged oil palm producers in the Ashanti, Eastern, Western, and Central regions, providing several key insights.
Out-grower schemes, which connect smallholder farmers with buyers in value chains, offer mutual benefits by granting smallholders market access, inputs, and technical support through contract farming.
The oil palm processing industry also yields products such as crude palm oil, palm kernel oil, and palm kernel cake, with crude palm oil dominating production. Additionally, the study found that oil palm waste can be converted into valuable products like organic fertiliser, fibres, and boiler fuel for steam and electricity in large-scale mills.
The research, which includes case studies from Cameroon and Côte d'Ivoire, aims to attract investment in sustainable oil palm development by engaging governments, development partners, investors, and private sector companies. My Joy Online
--------
Kogi State Governor Commends Selection Of State As Agro-Industrial Processing Zone
Gov. Usman Ododo of Kogi state says the choice of the state as a special agro-industrial processing zone by the Federal Government is a step in right direction.
Ododo said this when he hosted a delegation from the Africa Development Bank (AfDB) and the Federal Ministry of Agriculture and Food Security on Friday in Lokoja.
He explained that his administration was ready to meet all requirements for the establishment of a Special Agro-Industrial Processing Zone (SAPZ) in the state.
The project ,which is an initiative of the African Development Bank (AfDB), the Federal Ministry of Agriculture and Food Security and the Kogi government, is expected to attract significant foreign and domestic private sector investment into the state.
The Special Agro-Industrial Processing Zone is expected to process maize, cassava, rice, palm oil, cashew, sugarcane and fish, in line with the commitment of Gov Ododo to transform Kogi into an agro-industrial hub.
The governor said: “We have already allocated 254 hectares of land in Ukpake, AjaoKuta Local Government Area for the purpose of the special agro-industrial processing zone.
“Our decision to establish the agro-industrial processing zone in Ukpake was due to its strategic location and proximity to essential resources such as water supply, electricity, gas, a railway line linking Kogi state and a number of states and the proposed international cargo airport in Adogo ,which is a few kilometers from the proposed site of the agro-industrial facility. Voice of Nigeria
EU-ABC URGES RESUMING MALAYSIA-EU FTA, FOCUSES ON SEMICONDUCTORS OVER PALM OIL
KUALA LUMPUR, June 30 (Bernama) -- The Malaysia-European Union (EU) free trade agreement (FTA) should be revived, presenting extensive cooperation prospects beyond lingering palm oil disputes, notably in the semiconductor sector.
EU-ASEAN Business Council (EU-ABC) executive director Chris Humphrey highlighted Malaysia's aspiration to emerge as ASEAN's semiconductor leader, while the EU explores investment opportunities.
"Malaysia-EU trade has exceeded 50 million euros (1 euro = RM5.03), positioning Malaysia as one of the EU's top three trading partners in Southeast Asia.
"We would love to have a free trade agreement in place because it will help with not only tariff issues but also non-tariff barriers, government procurement and other related matters,” he told Bernama.
Humphrey emphasised that a Malaysia-EU FTA would boost European business confidence, showing that Malaysia is open to trade and investment.
He noted that while Malaysia aims to be Southeast Asia's semiconductor hub, Europe is always seeking new markets globally.
"I think that would be a good place for us to invest in, and with the FTA in place, I believe the numbers will be even better," he said.
Regarding palm oil disputes, Humphrey noted progress with a joint task force involving Indonesia, Malaysia, and the EU, and ongoing discussions on European deforestation regulations. More Bernama
--------
Enhanced incentive and regulatory frameworks needed in Ghana’s oil palm sector, study reveals
Proforest study has underscored the critical need for improved incentive and regulatory frameworks to unlock value chain opportunities in Ghana’s oil palm sector.
The research highlights the potential for creating jobs, protecting the environment, and enhancing rural development through prioritised research, land access, RSPO certification, and sustainable practices.
The study engaged oil palm producers in the Ashanti, Eastern, Western, and Central regions, providing several key insights.
Out-grower schemes, which connect smallholder farmers with buyers in value chains, offer mutual benefits by granting smallholders market access, inputs, and technical support through contract farming.
The oil palm processing industry also yields products such as crude palm oil, palm kernel oil, and palm kernel cake, with crude palm oil dominating production. Additionally, the study found that oil palm waste can be converted into valuable products like organic fertiliser, fibres, and boiler fuel for steam and electricity in large-scale mills.
The research, which includes case studies from Cameroon and Côte d'Ivoire, aims to attract investment in sustainable oil palm development by engaging governments, development partners, investors, and private sector companies. My Joy Online
--------
Kogi State Governor Commends Selection Of State As Agro-Industrial Processing Zone
Gov. Usman Ododo of Kogi state says the choice of the state as a special agro-industrial processing zone by the Federal Government is a step in right direction.
Ododo said this when he hosted a delegation from the Africa Development Bank (AfDB) and the Federal Ministry of Agriculture and Food Security on Friday in Lokoja.
He explained that his administration was ready to meet all requirements for the establishment of a Special Agro-Industrial Processing Zone (SAPZ) in the state.
The project ,which is an initiative of the African Development Bank (AfDB), the Federal Ministry of Agriculture and Food Security and the Kogi government, is expected to attract significant foreign and domestic private sector investment into the state.
The Special Agro-Industrial Processing Zone is expected to process maize, cassava, rice, palm oil, cashew, sugarcane and fish, in line with the commitment of Gov Ododo to transform Kogi into an agro-industrial hub.
The governor said: “We have already allocated 254 hectares of land in Ukpake, AjaoKuta Local Government Area for the purpose of the special agro-industrial processing zone.
“Our decision to establish the agro-industrial processing zone in Ukpake was due to its strategic location and proximity to essential resources such as water supply, electricity, gas, a railway line linking Kogi state and a number of states and the proposed international cargo airport in Adogo ,which is a few kilometers from the proposed site of the agro-industrial facility. Voice of Nigeria
|
|
|
June 29, 2024
Consumers and companies could be hit with $1.5 billion bill for EUDR compliance for cocoa and palm oil
Consumers and businesses across Europe could be hit with a bill of at least $1.5 billion over compliance costs of the fast-approaching EUDR regulations governing supply chains in key commodities including cocoa and palm oil, reports Neill Barston.
The financial study made by Globaldata warned that costs surrounding the certification of the incoming environmental laws could spiral further surrounding the scheme that has been devised to drive higher environmental standards in ensuring that companies are now responsible for ensuring deforestation-free trading and guaranteeing of human rights within agricultural communities.
Under the EUDR plans due to be introduced in December 2024, mid-to-large scale European businesses are being encouraged to cut their greenhouse gas emissions and help limit biodiversity loss by influencing global action on climate change targeting commodities linked to deforestation.
But as reported by Confectionery Production, considerable concerns have been raised over implementation of the programme, namely fears that its central satellite geomapping system presently lacks the level of accuracy required to ensure full traceability of the scheme down to individual farm level.
Consequently, the US government has waded into the situation in calling for the EUDR to be delayed in its introduction, as well as a large percentage of farmers working within cocoa farming within Ivory Coast, as well as in Indonesia and Malaysia. They have collective expressed concerns over just who will be expected to pay for the monitoring, and precisely how will such checks be carried out. More at Confectionery Production
-------
Pakistan-Experts call for palm oil cultivation
SAU leads experiment to boost domestic production, urge need for marketing mechanism
KARACHI:
Agriculture researchers and experts have called for the cultivation of palm oil and spreading awareness among farmers to promote this valuable crop. They stressed the need for investment in the palm oil sector to reduce edible oil imports and address the economic challenges faced by the country.
In a groundbreaking development, Sindh Agriculture University (SAU) Tando Jam has successfully conducted a palm oil production experiment. Experts highlighted the importance of developing a marketing mechanism for farmers and encouraging them to cultivate palm oil. This initiative could significantly reduce the import of edible oil and help address the ongoing economic crisis. Urban investors are urged to invest in agriculture.
A seminar titled “Oil Palm Production Technology and Advanced Nursery Management” was hosted by SAU in collaboration with the Agricultural Linkages Program (ALP) of the Pakistan Agricultural Research Council Islamabad at the SAU Senate Hall on Friday.
SAU Vice Chancellor Dr Fateh Marri pointed out that Pakistan imports edible oil worth $6 billion, the second-largest import after furnace oil. During the current economic crisis, the country is striving to secure only $1.5 billion from the International Monetary Fund (IMF). Increasing domestic edible oil production through palm oil cultivation in coastal, saline, and humid areas could significantly reduce reliance on the IMF. More TribunePK
--------
Robots Are Stepping Into One of Asia’s Dirtiest Farm Jobs
Anuradha Raghu and Kok Leong Chan, Bloomberg News
(Bloomberg) -- A drone buzzes between trees on a humid Malaysian morning, monitoring the oil palm fruits as they ripen. Self-driving trucks rumble over the vast plantation’s uneven ground, laying fertilizer and picking up the densely packed harvested bunches.
These are just some of the robots the Southeast Asian nation’s top palm growers hope will take over the sector’s most difficult and dirty jobs, plugging chronic worker shortages that have disrupted supplies of the world’s most-consumed edible oil.
With global stockpiles set for the first back-to-back decline in more than 40 years, Malaysia has every reason to push for automation to boost production. Increased awareness of the industry’s problematic reliance on migrant workers — clouded by restrictions and labor abuses — has also encouraged companies to find alternative solutions, said Mohamad Helmy Othman Basha, group managing director of SD Guthrie Bhd., a government-linked company previously known as Sime Darby Plantation.
“To depend on foreign workers for all these key tasks is actually putting this industry at a very high risk,” Helmy said. “This is why we have to take this plunge. We really have to place these bets.”
Perfecting the robots and deploying them at a commercially viable scale will take years, even as firms pour millions into developing such technology and retraining their staff to use it. But producers are pressing ahead. More BNN Bloomberg
--------
USA-Foreign biofuel feedstock imports in tallow and palm oil scrutinized
Will rising domestic demand for sustainable renewable fuels—including those using feedstocks from corn, soybeans and other U.S.-grown crops—be a bonanza for farmers? That dream may be fading as American energy giants take advantage of loopholes in green tax credit laws to look overseas for cheaper feedstocks to supply alternative fuel processors.
Bloomberg reported that American purchases of Brazilian beef tallow, which can be used as a feedstock for biofuels, climbed 377% in the first four months of 2024 from a year earlier. Brazil has accounted for nearly all the 40% increase in overall tallow shipments into the U.S. in the period. Brazil rarely exported tallow until 2022, according to Bloomberg, when Texas-based Darling Ingredients Inc., purchased FASA Group, Brazil’s largest independent rendering company. FASA has since become a supplier of waste fat to Diamond Green Diesel, a biofuel venture between Darling and Valero Energy Corp.
Total U.S. tallow imports rose fourfold since 2019 to a record 779,300 metric tons in 2023, according to U.S. government trade data analyzed by Bloomberg. Brazil, which made up for roughly 23% of shipments last year, saw its share jump to 40% in the first four months of the year.
Meanwhile, concern is growing that a similar spike in imports of “used cooking oil” from China may consist mostly of virgin palm oil, mixed in with a small amount of cooking oil. U.S. Sen. Roger Marshall (R-Kansas) filed a June 20 letter to the Environmental Protection Agency, the U.S. Department of Agriculture, U.S. Customs and Border Protection and the United States Trade Representative concerned with the recent and dramatic increase in used cooking oil imports from China. Marshall was joined by Sens. Sherrod Brown (D-Ohio), Pete Ricketts (R-Nebraska), Deb Fischer (R-Nebraska), Charles Grassley (R-Iowa), and Joni Ernst (R-Iowa). More High Plains Journal
--------
Nigeria-Edo Strengthens Collaboration with IDH for Green Economy
The Edo State Investment Promotion Office (ESIPO)-Ease of Doing Business Secretariat recently held a strategic meeting with representatives from the Sustainable Trade Initiative (IDH), Netherlands, to solidify their partnership and explore ways to maximize the impact of initiatives geared towards a green economy, with ESIPO’s one-stop-shop playing a central role.
The meeting, held in Benin City, saw discussions centred on maximizing the impact of IDH’s programmes in the state, particularly the National Initiatives for Sustainable and Climate-Smart Oil-Palm Smallholders (NISCOPS) programme.
Building on the achievements of Edo-NISCOPS I, the new €3 million, five-year programme (NISCOPS II) funded by the Netherlands and UK Governments aims to further support sustainable palm oil production in Edo State.
This will be achieved through collaboration with smallholder farmers and public-private partnerships (PPPs) spearheaded by ESIPO’s one-stop shop. A significant portion of the investment seeks to attract private sector co-funding, further strengthening PPPs within the state.
Looking ahead, key areas of collaboration for a Green Economy in Edo were suggested by the Managing Director of ESIPO, Mr. Kevin Uwaibi.
According to him, “I commend the longstanding partnership with IDH, dating back to 2019. The “Analysis of Key Investment Opportunities in Edo State Oil Palm Landscape 2020” facilitated by ESIPO with IDH’s support, was a great achievement. “
Uwaibi emphasized several areas for enhanced collaboration to amplify communication and visibility of IDH’s programs, ensuring sustainable empowerment for smallholder farmers. This Day Live
Consumers and companies could be hit with $1.5 billion bill for EUDR compliance for cocoa and palm oil
Consumers and businesses across Europe could be hit with a bill of at least $1.5 billion over compliance costs of the fast-approaching EUDR regulations governing supply chains in key commodities including cocoa and palm oil, reports Neill Barston.
The financial study made by Globaldata warned that costs surrounding the certification of the incoming environmental laws could spiral further surrounding the scheme that has been devised to drive higher environmental standards in ensuring that companies are now responsible for ensuring deforestation-free trading and guaranteeing of human rights within agricultural communities.
Under the EUDR plans due to be introduced in December 2024, mid-to-large scale European businesses are being encouraged to cut their greenhouse gas emissions and help limit biodiversity loss by influencing global action on climate change targeting commodities linked to deforestation.
But as reported by Confectionery Production, considerable concerns have been raised over implementation of the programme, namely fears that its central satellite geomapping system presently lacks the level of accuracy required to ensure full traceability of the scheme down to individual farm level.
Consequently, the US government has waded into the situation in calling for the EUDR to be delayed in its introduction, as well as a large percentage of farmers working within cocoa farming within Ivory Coast, as well as in Indonesia and Malaysia. They have collective expressed concerns over just who will be expected to pay for the monitoring, and precisely how will such checks be carried out. More at Confectionery Production
-------
Pakistan-Experts call for palm oil cultivation
SAU leads experiment to boost domestic production, urge need for marketing mechanism
KARACHI:
Agriculture researchers and experts have called for the cultivation of palm oil and spreading awareness among farmers to promote this valuable crop. They stressed the need for investment in the palm oil sector to reduce edible oil imports and address the economic challenges faced by the country.
In a groundbreaking development, Sindh Agriculture University (SAU) Tando Jam has successfully conducted a palm oil production experiment. Experts highlighted the importance of developing a marketing mechanism for farmers and encouraging them to cultivate palm oil. This initiative could significantly reduce the import of edible oil and help address the ongoing economic crisis. Urban investors are urged to invest in agriculture.
A seminar titled “Oil Palm Production Technology and Advanced Nursery Management” was hosted by SAU in collaboration with the Agricultural Linkages Program (ALP) of the Pakistan Agricultural Research Council Islamabad at the SAU Senate Hall on Friday.
SAU Vice Chancellor Dr Fateh Marri pointed out that Pakistan imports edible oil worth $6 billion, the second-largest import after furnace oil. During the current economic crisis, the country is striving to secure only $1.5 billion from the International Monetary Fund (IMF). Increasing domestic edible oil production through palm oil cultivation in coastal, saline, and humid areas could significantly reduce reliance on the IMF. More TribunePK
--------
Robots Are Stepping Into One of Asia’s Dirtiest Farm Jobs
Anuradha Raghu and Kok Leong Chan, Bloomberg News
(Bloomberg) -- A drone buzzes between trees on a humid Malaysian morning, monitoring the oil palm fruits as they ripen. Self-driving trucks rumble over the vast plantation’s uneven ground, laying fertilizer and picking up the densely packed harvested bunches.
These are just some of the robots the Southeast Asian nation’s top palm growers hope will take over the sector’s most difficult and dirty jobs, plugging chronic worker shortages that have disrupted supplies of the world’s most-consumed edible oil.
With global stockpiles set for the first back-to-back decline in more than 40 years, Malaysia has every reason to push for automation to boost production. Increased awareness of the industry’s problematic reliance on migrant workers — clouded by restrictions and labor abuses — has also encouraged companies to find alternative solutions, said Mohamad Helmy Othman Basha, group managing director of SD Guthrie Bhd., a government-linked company previously known as Sime Darby Plantation.
“To depend on foreign workers for all these key tasks is actually putting this industry at a very high risk,” Helmy said. “This is why we have to take this plunge. We really have to place these bets.”
Perfecting the robots and deploying them at a commercially viable scale will take years, even as firms pour millions into developing such technology and retraining their staff to use it. But producers are pressing ahead. More BNN Bloomberg
--------
USA-Foreign biofuel feedstock imports in tallow and palm oil scrutinized
Will rising domestic demand for sustainable renewable fuels—including those using feedstocks from corn, soybeans and other U.S.-grown crops—be a bonanza for farmers? That dream may be fading as American energy giants take advantage of loopholes in green tax credit laws to look overseas for cheaper feedstocks to supply alternative fuel processors.
Bloomberg reported that American purchases of Brazilian beef tallow, which can be used as a feedstock for biofuels, climbed 377% in the first four months of 2024 from a year earlier. Brazil has accounted for nearly all the 40% increase in overall tallow shipments into the U.S. in the period. Brazil rarely exported tallow until 2022, according to Bloomberg, when Texas-based Darling Ingredients Inc., purchased FASA Group, Brazil’s largest independent rendering company. FASA has since become a supplier of waste fat to Diamond Green Diesel, a biofuel venture between Darling and Valero Energy Corp.
Total U.S. tallow imports rose fourfold since 2019 to a record 779,300 metric tons in 2023, according to U.S. government trade data analyzed by Bloomberg. Brazil, which made up for roughly 23% of shipments last year, saw its share jump to 40% in the first four months of the year.
Meanwhile, concern is growing that a similar spike in imports of “used cooking oil” from China may consist mostly of virgin palm oil, mixed in with a small amount of cooking oil. U.S. Sen. Roger Marshall (R-Kansas) filed a June 20 letter to the Environmental Protection Agency, the U.S. Department of Agriculture, U.S. Customs and Border Protection and the United States Trade Representative concerned with the recent and dramatic increase in used cooking oil imports from China. Marshall was joined by Sens. Sherrod Brown (D-Ohio), Pete Ricketts (R-Nebraska), Deb Fischer (R-Nebraska), Charles Grassley (R-Iowa), and Joni Ernst (R-Iowa). More High Plains Journal
--------
Nigeria-Edo Strengthens Collaboration with IDH for Green Economy
The Edo State Investment Promotion Office (ESIPO)-Ease of Doing Business Secretariat recently held a strategic meeting with representatives from the Sustainable Trade Initiative (IDH), Netherlands, to solidify their partnership and explore ways to maximize the impact of initiatives geared towards a green economy, with ESIPO’s one-stop-shop playing a central role.
The meeting, held in Benin City, saw discussions centred on maximizing the impact of IDH’s programmes in the state, particularly the National Initiatives for Sustainable and Climate-Smart Oil-Palm Smallholders (NISCOPS) programme.
Building on the achievements of Edo-NISCOPS I, the new €3 million, five-year programme (NISCOPS II) funded by the Netherlands and UK Governments aims to further support sustainable palm oil production in Edo State.
This will be achieved through collaboration with smallholder farmers and public-private partnerships (PPPs) spearheaded by ESIPO’s one-stop shop. A significant portion of the investment seeks to attract private sector co-funding, further strengthening PPPs within the state.
Looking ahead, key areas of collaboration for a Green Economy in Edo were suggested by the Managing Director of ESIPO, Mr. Kevin Uwaibi.
According to him, “I commend the longstanding partnership with IDH, dating back to 2019. The “Analysis of Key Investment Opportunities in Edo State Oil Palm Landscape 2020” facilitated by ESIPO with IDH’s support, was a great achievement. “
Uwaibi emphasized several areas for enhanced collaboration to amplify communication and visibility of IDH’s programs, ensuring sustainable empowerment for smallholder farmers. This Day Live
|
|
|
June 28, 2024
EU imports still drive substantial global deforestation, report unveils
BRUSSELS, June 27 (Reuters) - European Union lawmakers are split over whether to delay the bloc's upcoming ban on imports of goods linked to deforestation, adding pressure on Ursula von der Leyen as she seeks their backing for a second term as the European Commission's president.
The EU's deforestation law will, from Dec. 30, require companies and traders placing beef, coffee, palm oil and other products on the EU market to prove their supply chains do not contribute to the destruction of forests.
In a statement published on Thursday, EU lawmaker Peter Liese - environment spokesperson for the European People's Party (EPP) lawmaker group, which is von der Leyen's political group - urged Brussels to delay and scale back the law, which he called a "bureaucratic monster".
"Many small farmers around the world and even small forest owners in the European Union cannot work with the text," Liese said.
EU leaders are expected to endorse von der Leyen for a second term as the Commission's president on Thursday.
But she still needs majority support from the European Parliament. That will require backing not only from the EPP, but also from lawmakers pressuring her not to weaken environment policies.
A source in the Socialists & Democrats (S&D), the Parliament's second-biggest lawmaker group behind the EPP, said the group was "totally opposed" to delaying the deforestation law.
"It is a clear no-go for S&D. The Commission has an obligation to implement it," the source said.
Green lawmakers - whose support von der Leyen may also need to win a comfortable majority - also oppose a delay.
The European Parliament approved the deforestation policy with a large majority last year - 552 votes in favour versus 44 against and 43 abstentions.
But the law has come under fire from countries including the U.S and palm oil producers Malaysia and Indonesia.
But the law has come under fire from countries including the U.S and palm oil producers Malaysia and Indonesia.
EU climate envoy Tony Agotha said, in general, the bloc should support countries concerned about how EU green policies affect their economies. The deforestation law “was done for a reason”, he added.
“The EU is a big driver – 10% of global deforestation, through our consumption of coffee, palm oil, rubber, soy, timber, beef, you name it. That’s a problem, we no longer wanted to be that,” Agotha told an event hosted by the think-tank Bruegel on Thursday.
A spokesperson for the European Commission said it was working to ensure the conditions are met for a smooth implementation of the policy. Reuters
--------
Is This Palm Oil Company Operating on Protected Forestland?
Friends of the Earth says Astra Agro Lestari’s sourcing methods infringe on protected forests in Indonesia, causing deforestation. The company disputes that. More at Inside Climate News
--------
Member of Commission VI: BPDPKS Funds Dominantly for Biodiesel, PTPN Largest Palm Oil Owner, Has Not Obtained Maximum Benefits
InfoSAWIT, JAKARTA – Commission VI of the Indonesian House of Representatives, which oversees industry, investment, and business competition, has held a Hearing Meeting (RDP) with PT Perkebunan Nusantara III (Plantation Holding) and PT Perhutani, on Tuesday (25/6/2024). On that occasion, one of the members of the Indonesian House of Representatives, Commission VI, Rieke Diah Pitaloka, questioned the division of the portion of the Palm Oil Plantation Fund Management Agency (BPDPKS) which is more inclined to pay the price difference for palm-based biodiesel.
In fact, BPDPKS (Palm Oil Plantation Fund Management Agency) is an oil palm plantation fund management institution which was formed based on Article 38 of Law Number 39 of 2014. These funds come from plantation fund levies on the export of Crude Palm Oil (CPO) and its derivative products.
Rieke revealed that the management of BPPDKS is regulated by the Regulation of the Minister of Finance of the Republic of Indonesia, or PMK 01/2015 dated 10 June 2015. The main aim of this fund is to encourage research, promotional development and development of the palm oil industry. This includes improving facilities and infrastructure, developing biodiesel, replanting plantations, increasing the number of business partners, distribution in the form of exports, and educating the public about oil palm plantations.
READ ALSO: Time for Palm Oil Farmers to Understand SNI 8211:2015, So Their Palm Oil Production Will Soar
"In practice, most of the BPDPPKS fund allocation is used to support biodiesel production. This fund is intended for biodiesel producers as an incentive to offset the price difference between biodiesel and diesel on the market," he said during a DPR Hearing Meeting with PTPN Holding and Perhutani monitored by InfoSAWIT , written Thursday (6/27/2024).
Rieke further said that the distribution of these funds also involved large companies in the palm oil industry, with the 3 largest companies receiving significant contributions. Where around 91.3% of the total of around IDR 176.1 trillion during the 2015-2020 period was disbursed for biodiesel incentives. "However, only a small portion of these funds, around 0.30-0.27%, was allocated for replanting development and public education," he said.
Rieke also reminded that PTPN Holding Perkebunan with the largest amount of oil palm land, is actually the largest contributor of BPDPKS funds, but has not received maximum benefits from the funds. Therefore, the importance of accurate data and transparency in the management of these funds is a focus, especially in supporting Commission VI and related agencies in ensuring the effectiveness and sustainability of the BPDPKS program. Infosawit
--------
Fact Check: Does palm oil increase cholesterol and diabetes levels?
Fact Checked By Garima Dev Verman
Is palm oil detrimental to health?
Not really. Palm oil isn't inherently detrimental to health if consumed moderately. Enjoying it in controlled amounts as part of a balanced diet shouldn't lead to cardiovascular issues or diabetes. However, excessive intake can pose risks due to its high saturated fat content. Moderation is key to avoiding potential health concerns associated with palm oil consumption.
A video on social media about palm oil increase cholesterol and linked to diabetes is likely an exaggeration or a misconception. We fact checked the side effect and found the claim to be Mostly False. More on The Healthy Indian Project
EU imports still drive substantial global deforestation, report unveils
BRUSSELS, June 27 (Reuters) - European Union lawmakers are split over whether to delay the bloc's upcoming ban on imports of goods linked to deforestation, adding pressure on Ursula von der Leyen as she seeks their backing for a second term as the European Commission's president.
The EU's deforestation law will, from Dec. 30, require companies and traders placing beef, coffee, palm oil and other products on the EU market to prove their supply chains do not contribute to the destruction of forests.
In a statement published on Thursday, EU lawmaker Peter Liese - environment spokesperson for the European People's Party (EPP) lawmaker group, which is von der Leyen's political group - urged Brussels to delay and scale back the law, which he called a "bureaucratic monster".
"Many small farmers around the world and even small forest owners in the European Union cannot work with the text," Liese said.
EU leaders are expected to endorse von der Leyen for a second term as the Commission's president on Thursday.
But she still needs majority support from the European Parliament. That will require backing not only from the EPP, but also from lawmakers pressuring her not to weaken environment policies.
A source in the Socialists & Democrats (S&D), the Parliament's second-biggest lawmaker group behind the EPP, said the group was "totally opposed" to delaying the deforestation law.
"It is a clear no-go for S&D. The Commission has an obligation to implement it," the source said.
Green lawmakers - whose support von der Leyen may also need to win a comfortable majority - also oppose a delay.
The European Parliament approved the deforestation policy with a large majority last year - 552 votes in favour versus 44 against and 43 abstentions.
But the law has come under fire from countries including the U.S and palm oil producers Malaysia and Indonesia.
But the law has come under fire from countries including the U.S and palm oil producers Malaysia and Indonesia.
EU climate envoy Tony Agotha said, in general, the bloc should support countries concerned about how EU green policies affect their economies. The deforestation law “was done for a reason”, he added.
“The EU is a big driver – 10% of global deforestation, through our consumption of coffee, palm oil, rubber, soy, timber, beef, you name it. That’s a problem, we no longer wanted to be that,” Agotha told an event hosted by the think-tank Bruegel on Thursday.
A spokesperson for the European Commission said it was working to ensure the conditions are met for a smooth implementation of the policy. Reuters
--------
Is This Palm Oil Company Operating on Protected Forestland?
Friends of the Earth says Astra Agro Lestari’s sourcing methods infringe on protected forests in Indonesia, causing deforestation. The company disputes that. More at Inside Climate News
--------
Member of Commission VI: BPDPKS Funds Dominantly for Biodiesel, PTPN Largest Palm Oil Owner, Has Not Obtained Maximum Benefits
InfoSAWIT, JAKARTA – Commission VI of the Indonesian House of Representatives, which oversees industry, investment, and business competition, has held a Hearing Meeting (RDP) with PT Perkebunan Nusantara III (Plantation Holding) and PT Perhutani, on Tuesday (25/6/2024). On that occasion, one of the members of the Indonesian House of Representatives, Commission VI, Rieke Diah Pitaloka, questioned the division of the portion of the Palm Oil Plantation Fund Management Agency (BPDPKS) which is more inclined to pay the price difference for palm-based biodiesel.
In fact, BPDPKS (Palm Oil Plantation Fund Management Agency) is an oil palm plantation fund management institution which was formed based on Article 38 of Law Number 39 of 2014. These funds come from plantation fund levies on the export of Crude Palm Oil (CPO) and its derivative products.
Rieke revealed that the management of BPPDKS is regulated by the Regulation of the Minister of Finance of the Republic of Indonesia, or PMK 01/2015 dated 10 June 2015. The main aim of this fund is to encourage research, promotional development and development of the palm oil industry. This includes improving facilities and infrastructure, developing biodiesel, replanting plantations, increasing the number of business partners, distribution in the form of exports, and educating the public about oil palm plantations.
READ ALSO: Time for Palm Oil Farmers to Understand SNI 8211:2015, So Their Palm Oil Production Will Soar
"In practice, most of the BPDPPKS fund allocation is used to support biodiesel production. This fund is intended for biodiesel producers as an incentive to offset the price difference between biodiesel and diesel on the market," he said during a DPR Hearing Meeting with PTPN Holding and Perhutani monitored by InfoSAWIT , written Thursday (6/27/2024).
Rieke further said that the distribution of these funds also involved large companies in the palm oil industry, with the 3 largest companies receiving significant contributions. Where around 91.3% of the total of around IDR 176.1 trillion during the 2015-2020 period was disbursed for biodiesel incentives. "However, only a small portion of these funds, around 0.30-0.27%, was allocated for replanting development and public education," he said.
Rieke also reminded that PTPN Holding Perkebunan with the largest amount of oil palm land, is actually the largest contributor of BPDPKS funds, but has not received maximum benefits from the funds. Therefore, the importance of accurate data and transparency in the management of these funds is a focus, especially in supporting Commission VI and related agencies in ensuring the effectiveness and sustainability of the BPDPKS program. Infosawit
--------
Fact Check: Does palm oil increase cholesterol and diabetes levels?
Fact Checked By Garima Dev Verman
Is palm oil detrimental to health?
Not really. Palm oil isn't inherently detrimental to health if consumed moderately. Enjoying it in controlled amounts as part of a balanced diet shouldn't lead to cardiovascular issues or diabetes. However, excessive intake can pose risks due to its high saturated fat content. Moderation is key to avoiding potential health concerns associated with palm oil consumption.
A video on social media about palm oil increase cholesterol and linked to diabetes is likely an exaggeration or a misconception. We fact checked the side effect and found the claim to be Mostly False. More on The Healthy Indian Project
|
|
|
June 27, 2024
15 INITIATIVES IMPLEMENTED UNDER MSPO CERTIFICATION STRATEGY ACTION PLAN
KUALA LUMPUR, June 26 (Bernama) — A total of 15 strategic initiatives have been implemented under the Malaysian Sustainable Palm Oil (MSPO) Certification Strategy Action Plan 2024-2026 to strengthen the MSPO brand, said Deputy Plantation and Commodity Minister Datuk Chan Foong Hin.
He said among the strategic initiatives have been the rebranding of MSPO from the Malaysian Palm Oil Certification Council (MPOCC); efforts to accept and recognise the MSPO certification scheme by the European Union (EU) within the framework of the European Union Deforestation-free Regulation (EUDR); and acceptance of the MSPO Biomass certification scheme in Japan.
The MSPO Certification Strategy Action Plan 2024 – 2026 was designed to strengthen and increase the acceptance of the MSPO certification scheme in the global market and is in the process of implementation.
Chan said this in response to a question from Jamaludin Yahya (PN-Pasir Salak) who wanted to know the status of the MSPO Certification Strategy Action Plan 2024-2026 in the Dewan Rakyat today.
As of May 31, 2024, 86 per cent, or 4.84 million hectares of the country's 5.62 million hectares of oil palm plantations have obtained the MSPO.— BERNAMA
--------
Transforming Ethical Recruitment in Malaysian Palm Oil With the People Positive Palm Project
NORTHAMPTON, MA / ACCESSWIRE / June 26, 2024 / Welcome to the People Positive Palm (P3) Project Ethical Recruitment Training video, presented by the Consumer Goods Forum's Human Rights Coalition in collaboration with the International Organization for Migration (IOM) and the Fair Labor Association (FLA).
In this video, stakeholders from the P3 Project discuss their commitment to eradicating forced labour in the Malaysian palm oil supply chain through ethical recruitment practices. Representatives underscore the coalition's dedication to upholding workers' rights across the entire value chain. Insights from the International Organization for Migration (IOM) shed light on the challenges faced by migrant workers and stress the importance of fair recruitment to mitigate risks of exploitation. They highlight the regular training workshops conducted in Malaysia and Indonesia, aimed at aligning practices with international standards.
The video features interviews with recruiters who have participated in the P3 Project's ethical recruitment training sessions. Recruiters share their perspectives on the benefits of ethical practices and emphasise the significance of compliance in their operations. Closing remarks underscore the comprehensive approach of the P3 Project, uniting stakeholders to reform recruitment norms and ensure migrant workers are treated fairly and with dignity from recruitment onwards.
Key Highlights: More at AccessWire
--------
New Report Reveals Indonesian Palm Oil Giant’s Violations More Widespread Than Initially Documented
Today, Friends of the Earth US, WALHI (Friends of the Earth Indonesia), and Milieudefensie (Friends of the Earth Netherlands) released a new report detailing how protracted land conflicts, governance failures, and a lack of accountability define Astra Agro Lestari’s operations in Indonesia. The report reveals that AAL’s environmental and governance violations appear to be more extensive than initially documented, including: illegal palm oil cultivation inside Indonesia’s forest estate; ongoing intimidation and criminalization of environmental human rights defenders; and several AAL subsidiaries operating without required permits.
The report – Cultivating Conflict: How Astra Agro Lestari, Brands and Big Finance Capitalize on Indonesia’s Governance Gaps – also details how consumer brands and agribusiness traders that source from AAL, and financiers that bankroll AAL, all take advantage of weak governance and administrative failures in Indonesia to maintain business as usual.
Key findings include: More at UK Agro Consult
---------
Investigation confirms more abuses on Nigeria, Sierra Leone Socfin plantations
Findings from a second round of investigations into allegations of human rights abuses on plantations owned by Belgian company Socfin have been published.
Supply chain consultancy Earthworm Foundation found evidence of sexual violence and land conflict, following similar findings from other plantations in West and Central Africa published in December 2023.
Around one plantation, in Sierra Leone, a mapping exercise may signal action to remedy some problems, but communities and their supporters elsewhere say it’s unclear how Socfin can be held to account.
International NGOs point out that the findings are in conflict with Roundtable on Sustainable Palm Oil (RSPO) certifications that Socfin holds.
In 2023, Socfin hired a consultancy to investigate longstanding allegations of human rights violations and environmental damage raised by communities living around the Belgian transnational company’s oil palm and rubber plantations in Africa and Southeast Asia. Findings from a second round of investigations have now been published.
Supply chain consultancy Earthworm Foundation’s investigators visited a subsidiary in Sierra Leone, the Socfin Agricultural Company (SAC), and one of the holding group’s four Cameroonian operations, SAFACAM. They found evidence of sexual harassment, problems with concession agreements and compensation schemes, as well as numerous incidents of pollution of water sources and environmental degradation affecting nearby communities in Sierra Leone and Cameroon. More at Mongabay
---------
India grants duty concessions for corn, vegetable oil imports
MUMBAI, June 26 (Reuters) - India on Wednesday allowed limited imports of corn, crude sunflower oil, refined rapeseed oil, and milk powder under the tariff-rate quota (TRQ), where importers pay nil or lower duty, as New Delhi tries to bring down food inflation.
India is the world's biggest importer of vegetable oils such as palm oil, soyoil and sunflower oil and the top producer of milk.
India has allowed imports of 150,000 metric tons of sunflower oil or safflower oil, 500,000 tons of corn, 10,000 tons of milk powder and 150,000 tons of refined rapeseed oil, the government said. Reuters
15 INITIATIVES IMPLEMENTED UNDER MSPO CERTIFICATION STRATEGY ACTION PLAN
KUALA LUMPUR, June 26 (Bernama) — A total of 15 strategic initiatives have been implemented under the Malaysian Sustainable Palm Oil (MSPO) Certification Strategy Action Plan 2024-2026 to strengthen the MSPO brand, said Deputy Plantation and Commodity Minister Datuk Chan Foong Hin.
He said among the strategic initiatives have been the rebranding of MSPO from the Malaysian Palm Oil Certification Council (MPOCC); efforts to accept and recognise the MSPO certification scheme by the European Union (EU) within the framework of the European Union Deforestation-free Regulation (EUDR); and acceptance of the MSPO Biomass certification scheme in Japan.
The MSPO Certification Strategy Action Plan 2024 – 2026 was designed to strengthen and increase the acceptance of the MSPO certification scheme in the global market and is in the process of implementation.
Chan said this in response to a question from Jamaludin Yahya (PN-Pasir Salak) who wanted to know the status of the MSPO Certification Strategy Action Plan 2024-2026 in the Dewan Rakyat today.
As of May 31, 2024, 86 per cent, or 4.84 million hectares of the country's 5.62 million hectares of oil palm plantations have obtained the MSPO.— BERNAMA
--------
Transforming Ethical Recruitment in Malaysian Palm Oil With the People Positive Palm Project
NORTHAMPTON, MA / ACCESSWIRE / June 26, 2024 / Welcome to the People Positive Palm (P3) Project Ethical Recruitment Training video, presented by the Consumer Goods Forum's Human Rights Coalition in collaboration with the International Organization for Migration (IOM) and the Fair Labor Association (FLA).
In this video, stakeholders from the P3 Project discuss their commitment to eradicating forced labour in the Malaysian palm oil supply chain through ethical recruitment practices. Representatives underscore the coalition's dedication to upholding workers' rights across the entire value chain. Insights from the International Organization for Migration (IOM) shed light on the challenges faced by migrant workers and stress the importance of fair recruitment to mitigate risks of exploitation. They highlight the regular training workshops conducted in Malaysia and Indonesia, aimed at aligning practices with international standards.
The video features interviews with recruiters who have participated in the P3 Project's ethical recruitment training sessions. Recruiters share their perspectives on the benefits of ethical practices and emphasise the significance of compliance in their operations. Closing remarks underscore the comprehensive approach of the P3 Project, uniting stakeholders to reform recruitment norms and ensure migrant workers are treated fairly and with dignity from recruitment onwards.
Key Highlights: More at AccessWire
--------
New Report Reveals Indonesian Palm Oil Giant’s Violations More Widespread Than Initially Documented
Today, Friends of the Earth US, WALHI (Friends of the Earth Indonesia), and Milieudefensie (Friends of the Earth Netherlands) released a new report detailing how protracted land conflicts, governance failures, and a lack of accountability define Astra Agro Lestari’s operations in Indonesia. The report reveals that AAL’s environmental and governance violations appear to be more extensive than initially documented, including: illegal palm oil cultivation inside Indonesia’s forest estate; ongoing intimidation and criminalization of environmental human rights defenders; and several AAL subsidiaries operating without required permits.
The report – Cultivating Conflict: How Astra Agro Lestari, Brands and Big Finance Capitalize on Indonesia’s Governance Gaps – also details how consumer brands and agribusiness traders that source from AAL, and financiers that bankroll AAL, all take advantage of weak governance and administrative failures in Indonesia to maintain business as usual.
Key findings include: More at UK Agro Consult
---------
Investigation confirms more abuses on Nigeria, Sierra Leone Socfin plantations
Findings from a second round of investigations into allegations of human rights abuses on plantations owned by Belgian company Socfin have been published.
Supply chain consultancy Earthworm Foundation found evidence of sexual violence and land conflict, following similar findings from other plantations in West and Central Africa published in December 2023.
Around one plantation, in Sierra Leone, a mapping exercise may signal action to remedy some problems, but communities and their supporters elsewhere say it’s unclear how Socfin can be held to account.
International NGOs point out that the findings are in conflict with Roundtable on Sustainable Palm Oil (RSPO) certifications that Socfin holds.
In 2023, Socfin hired a consultancy to investigate longstanding allegations of human rights violations and environmental damage raised by communities living around the Belgian transnational company’s oil palm and rubber plantations in Africa and Southeast Asia. Findings from a second round of investigations have now been published.
Supply chain consultancy Earthworm Foundation’s investigators visited a subsidiary in Sierra Leone, the Socfin Agricultural Company (SAC), and one of the holding group’s four Cameroonian operations, SAFACAM. They found evidence of sexual harassment, problems with concession agreements and compensation schemes, as well as numerous incidents of pollution of water sources and environmental degradation affecting nearby communities in Sierra Leone and Cameroon. More at Mongabay
---------
India grants duty concessions for corn, vegetable oil imports
MUMBAI, June 26 (Reuters) - India on Wednesday allowed limited imports of corn, crude sunflower oil, refined rapeseed oil, and milk powder under the tariff-rate quota (TRQ), where importers pay nil or lower duty, as New Delhi tries to bring down food inflation.
India is the world's biggest importer of vegetable oils such as palm oil, soyoil and sunflower oil and the top producer of milk.
India has allowed imports of 150,000 metric tons of sunflower oil or safflower oil, 500,000 tons of corn, 10,000 tons of milk powder and 150,000 tons of refined rapeseed oil, the government said. Reuters
|
|
|
June 26, 2024
Indonesia nears free trade agreement with EAEU: Trade Minister
Jakarta (ANTARA) - Indonesia's Trade Minister Zulkifli Hasan has announced that the drafting of negotiation points for the Indonesia-Eurasian Economic Union Free Trade Agreement (IEAEU-FTA) will be completed soon.
"Only a few points remain," he said after attending a cabinet meeting with President Joko Widodo in Jakarta on Tuesday.
Indonesia and the Eurasian Economic Union (EAEU) completed the first round of negotiations in Jakarta on April 3–5, 2023, following their official launch on December 5, 2022.
The EAEU, boasting a population of 183 million and a substantial gross domestic product of US$2.04 trillion, represents a non-traditional trading partner for Indonesia. This economic bloc has the potential to serve as a strategic hub for Indonesian products in both Central Asia and Eastern Europe.
In addition to the IEAEU-FTA, Indonesia continues trade negotiations with Bangladesh. These ongoing discussions focus on commodities beyond coal and palm oil.
While Indonesia currently enjoys a surplus of US$2 billion in coal and palm oil trade with Bangladesh, the South Asian country aims to expand its textile trade. Antara News
--------
Malaysia set to sign trade agreement with China for palm oil and agricultural commodities
The Malaysian government is set to sign a trade agreement with China for palm oil and agricultural commodities later this year, The Star reported the country’s deputy Plantation and Commodities minister Chan Foong Hin as saying.
The memorandum of understanding (MoU) would also be a milestone to mark 50 years of diplomatic relations between Malaysia and China, Hin was quoted as saying in the 10 June report.
“With our collaborative efforts, palm oil trade will deepen and continue to reach new historic highs,” he said, adding that increasing exports of palm oil products to China was part of the ministry’s new direction.
China had been Malaysia’s largest trading partner for 15 consecutive years, he said.
“In 2023, Malaysia exported RM192.2bn (US$40.8bn) worth of goods to China, with agricultural commodity exports accounting for over RM20bn (US$4.2bn),” Hin said.
“Exports of palm oil and its products take the largest share … at RM11.03bn (US$2.3bn), followed by rubber (RM5.43bn/US$1.15bn)), timber (RM2.83bn/(US$601M), cocoa (RM684M/US$145M), tobacco (RM18.43M/US$3.9M) and pepper (RM11.88M/US$2.4M).”
Although Hin said he had received many requests about expanding palm oil exports to China, Malaysia’s production had stagnated at about 18M tonnes/year of crude palm oil.
Of the 18M tonnes, 3M tonnes had been allocated for domestic consumption, while the remainder was exported to China and other global buyers.
“The real question is how we can maximise the value of those 18M tonnes,” he said.
Palm oil production in Malaysia is limited as the country has capped the number of oil palm plantations at 6.5M ha to preserve primary forest cover. OFI Magazine
--------
European Commission responds to ten crucial EUDR deforestation questions
As the clock counts down for the final few months before the anticipated EUDR regulations, the European Commission has answered ten crucial questions surrounding the landmark policy’s delivery, reports Antony Myers.
Notably, as Confectionery Production has reported this past week, the US government, along with major farming groups in Ivory Coast and in Malaysia, have sought to delay the delivery of the scheme following concerns from businesses within cocoa and other markets including the timber trade, have voiced concerns about the roll-out of its complex satellite ‘geomapping’ based compliance system.
When The European Union Deforestation Regulation (EUDR) comes into force in six months [30 December 2024], it will prohibit the sale of commodities, including cocoa, coffee, soy, and palm oil, into the bloc unless strict traceability measures are proven to show such goods have not been farmed in protected areas.
While the cocoa sector has broadly welcomed the legislation, we can report serious misgivings about its implementation, leading to calls for it to be delayed until further guidelines from the European Commission are available.
The EUDR is one of the shortest-ever pieces of legislation passed by Brussels to guarantee that the products EU citizens consume do not contribute to deforestation or forest degradation worldwide. The regulations also cover derived products, which in the case of cocoa means chocolate.
Up until now, the EC has remained relatively silent on the ruling, which was passed in June 2023 – but in an interview obtained by journalist Tony Myers for the CocoaRadar website the EC confirmed there is no ‘Plan B’, and the legislation will become effective at the end of this year.
In reply to 10 crucial questions regarding the EUDR’s implementation, the Commission has confirmed that it is working on further guidelines detailing the Regulation’s aspects and said: “These guidelines will be made available as soon as they are finalised.” Confectionery Production
--------
Year of the woman farmer recognized
WINNIPEG — The International Year of the Woman farmer will officially be launched Thursday at an event in Washington, D.C.
Officials from the U.S. Department of Agriculture and other government agencies will attend the event, which will kick off programs and policies to support female farmers around the globe.
“The International Year of the Woman Farmer 2026 will serve as a platform for the adoption of effective policies and actions against the barriers and challenges that women farmers face across agrifood systems,” the United Nations Food and Agriculture Organization said in May, after the UN General Assembly voted to declare the International Year of the Woman Farmer.
The designation is symbolic, but it does recognize that female farmers deal with unique challenges — in the United States, Canada and especially the developing world.
Women are responsible for roughly half of the world’s food production and in many countries they produce 60 and 80 per cent of the food, the UN says.
However, in some nations, including multiple countries in Africa, local laws and customs make it difficult for women to own land.
“From the field to the factory, from the classroom to the boardroom, women are fundamental to the future of agriculture. As leaders, it is our responsibility to make sure the next generation of women farmers have equal access to economic, educational and leadership opportunities,” said USDA deputy secretary Xochitl Torres-Small.
In Canada, farm leaders know that women play critical roles in farming and food production, but those efforts are often unappreciated. Producer
--------
Health risks mount for Ghanaian women in palm oil production as they call for cleaner cooking technologies, better healthcare access
OFORIKROM, Ashanti Region - Women working in small-scale palm oil production face severe health risks from hazardous conditions involving high heat and constant exposure to toxic smoke, according to experts.
Thousands of women and being sickened and risking death from illnesses resulting from their work. Workers and health experts are now calling on the industry to clean up its act with cleaner cooking technologies and better healthcare access.
On a sunny afternoon here in Oforikrom, a community in the Ashanti Region of Ghana, 42-year-old Vivian Fori stands beside an open firewood stand stirring a big pot of deep red palm oil. A thick smoke fills the air.
Using her hand to wipe her teary eyes and sweating face, Vivian says she uses firewood to cook the whole day. She processes palm oil on a small scale, a job taught to her by her mother-in-law three years ago. It’s been a reliable source of income for her family.
"This work is full of stress but it is worth it,” Vivian says. “It is a job for females. You can make a lot of profit from processing palm oil, but it is not so much. At least you can get a wage that can take you through the day.” My Joy Online
Indonesia nears free trade agreement with EAEU: Trade Minister
Jakarta (ANTARA) - Indonesia's Trade Minister Zulkifli Hasan has announced that the drafting of negotiation points for the Indonesia-Eurasian Economic Union Free Trade Agreement (IEAEU-FTA) will be completed soon.
"Only a few points remain," he said after attending a cabinet meeting with President Joko Widodo in Jakarta on Tuesday.
Indonesia and the Eurasian Economic Union (EAEU) completed the first round of negotiations in Jakarta on April 3–5, 2023, following their official launch on December 5, 2022.
The EAEU, boasting a population of 183 million and a substantial gross domestic product of US$2.04 trillion, represents a non-traditional trading partner for Indonesia. This economic bloc has the potential to serve as a strategic hub for Indonesian products in both Central Asia and Eastern Europe.
In addition to the IEAEU-FTA, Indonesia continues trade negotiations with Bangladesh. These ongoing discussions focus on commodities beyond coal and palm oil.
While Indonesia currently enjoys a surplus of US$2 billion in coal and palm oil trade with Bangladesh, the South Asian country aims to expand its textile trade. Antara News
--------
Malaysia set to sign trade agreement with China for palm oil and agricultural commodities
The Malaysian government is set to sign a trade agreement with China for palm oil and agricultural commodities later this year, The Star reported the country’s deputy Plantation and Commodities minister Chan Foong Hin as saying.
The memorandum of understanding (MoU) would also be a milestone to mark 50 years of diplomatic relations between Malaysia and China, Hin was quoted as saying in the 10 June report.
“With our collaborative efforts, palm oil trade will deepen and continue to reach new historic highs,” he said, adding that increasing exports of palm oil products to China was part of the ministry’s new direction.
China had been Malaysia’s largest trading partner for 15 consecutive years, he said.
“In 2023, Malaysia exported RM192.2bn (US$40.8bn) worth of goods to China, with agricultural commodity exports accounting for over RM20bn (US$4.2bn),” Hin said.
“Exports of palm oil and its products take the largest share … at RM11.03bn (US$2.3bn), followed by rubber (RM5.43bn/US$1.15bn)), timber (RM2.83bn/(US$601M), cocoa (RM684M/US$145M), tobacco (RM18.43M/US$3.9M) and pepper (RM11.88M/US$2.4M).”
Although Hin said he had received many requests about expanding palm oil exports to China, Malaysia’s production had stagnated at about 18M tonnes/year of crude palm oil.
Of the 18M tonnes, 3M tonnes had been allocated for domestic consumption, while the remainder was exported to China and other global buyers.
“The real question is how we can maximise the value of those 18M tonnes,” he said.
Palm oil production in Malaysia is limited as the country has capped the number of oil palm plantations at 6.5M ha to preserve primary forest cover. OFI Magazine
--------
European Commission responds to ten crucial EUDR deforestation questions
As the clock counts down for the final few months before the anticipated EUDR regulations, the European Commission has answered ten crucial questions surrounding the landmark policy’s delivery, reports Antony Myers.
Notably, as Confectionery Production has reported this past week, the US government, along with major farming groups in Ivory Coast and in Malaysia, have sought to delay the delivery of the scheme following concerns from businesses within cocoa and other markets including the timber trade, have voiced concerns about the roll-out of its complex satellite ‘geomapping’ based compliance system.
When The European Union Deforestation Regulation (EUDR) comes into force in six months [30 December 2024], it will prohibit the sale of commodities, including cocoa, coffee, soy, and palm oil, into the bloc unless strict traceability measures are proven to show such goods have not been farmed in protected areas.
While the cocoa sector has broadly welcomed the legislation, we can report serious misgivings about its implementation, leading to calls for it to be delayed until further guidelines from the European Commission are available.
The EUDR is one of the shortest-ever pieces of legislation passed by Brussels to guarantee that the products EU citizens consume do not contribute to deforestation or forest degradation worldwide. The regulations also cover derived products, which in the case of cocoa means chocolate.
Up until now, the EC has remained relatively silent on the ruling, which was passed in June 2023 – but in an interview obtained by journalist Tony Myers for the CocoaRadar website the EC confirmed there is no ‘Plan B’, and the legislation will become effective at the end of this year.
In reply to 10 crucial questions regarding the EUDR’s implementation, the Commission has confirmed that it is working on further guidelines detailing the Regulation’s aspects and said: “These guidelines will be made available as soon as they are finalised.” Confectionery Production
--------
Year of the woman farmer recognized
WINNIPEG — The International Year of the Woman farmer will officially be launched Thursday at an event in Washington, D.C.
Officials from the U.S. Department of Agriculture and other government agencies will attend the event, which will kick off programs and policies to support female farmers around the globe.
“The International Year of the Woman Farmer 2026 will serve as a platform for the adoption of effective policies and actions against the barriers and challenges that women farmers face across agrifood systems,” the United Nations Food and Agriculture Organization said in May, after the UN General Assembly voted to declare the International Year of the Woman Farmer.
The designation is symbolic, but it does recognize that female farmers deal with unique challenges — in the United States, Canada and especially the developing world.
Women are responsible for roughly half of the world’s food production and in many countries they produce 60 and 80 per cent of the food, the UN says.
However, in some nations, including multiple countries in Africa, local laws and customs make it difficult for women to own land.
“From the field to the factory, from the classroom to the boardroom, women are fundamental to the future of agriculture. As leaders, it is our responsibility to make sure the next generation of women farmers have equal access to economic, educational and leadership opportunities,” said USDA deputy secretary Xochitl Torres-Small.
In Canada, farm leaders know that women play critical roles in farming and food production, but those efforts are often unappreciated. Producer
--------
Health risks mount for Ghanaian women in palm oil production as they call for cleaner cooking technologies, better healthcare access
OFORIKROM, Ashanti Region - Women working in small-scale palm oil production face severe health risks from hazardous conditions involving high heat and constant exposure to toxic smoke, according to experts.
Thousands of women and being sickened and risking death from illnesses resulting from their work. Workers and health experts are now calling on the industry to clean up its act with cleaner cooking technologies and better healthcare access.
On a sunny afternoon here in Oforikrom, a community in the Ashanti Region of Ghana, 42-year-old Vivian Fori stands beside an open firewood stand stirring a big pot of deep red palm oil. A thick smoke fills the air.
Using her hand to wipe her teary eyes and sweating face, Vivian says she uses firewood to cook the whole day. She processes palm oil on a small scale, a job taught to her by her mother-in-law three years ago. It’s been a reliable source of income for her family.
"This work is full of stress but it is worth it,” Vivian says. “It is a job for females. You can make a lot of profit from processing palm oil, but it is not so much. At least you can get a wage that can take you through the day.” My Joy Online
|
|
|
June 25, 2024
UCO Fraud Concerns Mount in US
There are concerns about potential fraud in used cooking oil (UCO) trade as demand for feedstocks to produce biofuels in the U.S. increases. There are suspicions that some virgin vegoils (like palm oil) may be mislabeled as UCO, as there are indications of irregularities in collection and export rates from some Asian countries. For example, Malaysia is reported to export three times more UCO than it collects, suggesting potential fraud. Also, some analysts and traders note a big increase in Indonesian virgin UCO exports to the U.S. specifically for biofuels production. Of note: So much UCO is being imported, some predict a building of U.S. soybean oil stocks.
Last week a bipartisan group of six Senators urged the Biden administration to increase scrutiny of UCO imports from China. Concerns have arisen that some of these imports may be fraudulent, blended with virgin oils like palm oil, which have higher carbon intensity and are linked to deforestation. This could undermine U.S. renewable fuel policies by displacing cleaner, domestically grown feedstocks and leveraging U.S. renewable fuel incentives. The lawmakers noted UCO imports into the U.S. have skyrocketed from less than 200 million lbs. annually in 2020 to over 3 billion lbs. in 2023, with more than half coming from China. They emphasized the need for rigorous verification of UCO imports, like the scrutiny domestic feedstocks undergo. The lawmakers pointed out that Europe has already acted against UCO fraud, leading to a shift in shipments to the U.S., where demand for renewable feedstocks is high, particularly in states with clean fuel policies. They urged U.S. agencies to ensure the authenticity of UCO imports and to prevent counterfeit feedstocks from receiving American tax incentives. AgWeb
--------
US Senators Press Federal Agencies On Concerns Over Fraudulent UCO Imports
A bipartisan group of six senators, led by Sen. Roger Marshall, R-Kan., on June 20 send a letter to the U.S. EPA, USDA, U.S. Trade Representative, and U.S. Customers and Board Protection expressing concern with dramatic increases in used cooking oil (UCO) imports from China.
The letter notes that the U.S. imported less than 200 million pounds of UCO in 2020. Imports increased to more than 3 billion pounds in 2023, with more than 50% of imports coming from China.
“As evidenced in recent news coverage, there is concern by some in the renewable fuels industry that large amounts of imported UCO may be a blend of UCO with virgin vegetable oils such as palm oil, which is directly linked to deforestation in Southeast Asia,” the senators wrote. “This would constitute fraudulent value distortion of the commodity designed to take advantage of U.S. tax incentives in addition to renewable identification number (RIN) fraud under the [Renewable Fuel Standard]. If true, this would have an especially punitive effect on U.S. agriculture, as imported UCO bears a lower carbon intensity score than domestically produced agricultural feedstocks, which incur punitive and unnecessary indirect land use change penalties in state and federal programs, as well as onerous verification and reporting requirements required of farmers to validate carbon-friendly practices.” Biodiesel Magazine
--------
Senior US trade officials add to calls for EUDR delay
The US commerce, agriculture and trade representatives have jointly written to the European Commission calling for a delay to incoming EUDR regulations due to ‘critical challenges’ posed for the US timber, paper and pulp industries
Three senior US trade officials have jointly called on the European Union to delay EU Deforestation Regulation (EUDR), which is due to come into force on 30 December 2024.
In a letter to the European Commission seen by The Financial Times, US Secretary of Commerce Gina Raimondo, US Secretary of Agriculture Thomas Vilsack and US Trade Representative Katherine Tai said the law posed ‘critical challenges’ to US producers – particularly in the timber, paper and pulp industries.
EUDR will require businesses importing products to the EU considered ‘main drivers for deforestation’ – including coffee, cocoa, palm oil, paper and wood – to produce a due diligence statement that imports have not contributed to forest degradation anywhere in the world after 31 December 2020.
“We urge the European Commission to delay the implementation of this regulation and subsequent enforcement of penalties until these substantial challenges have been addressed,” the letter said. Meanwhile, the American Forest and Paper Association (AF&PA) said current EUDR laws would impose ‘unachievable requirements’ and ‘significant technical barriers’ on producers that put US-EU trade at risk.
While the latest US objections to EUDR do not explicitly focus on coffee, pressure on the EU to delay or scale back the legislation could have significant ramifications for coffee businesses in both producing and consuming countries. World Coffee Portal
--------
UCO Fraud Concerns Mount in US
There are concerns about potential fraud in used cooking oil (UCO) trade as demand for feedstocks to produce biofuels in the U.S. increases. There are suspicions that some virgin vegoils (like palm oil) may be mislabeled as UCO, as there are indications of irregularities in collection and export rates from some Asian countries. For example, Malaysia is reported to export three times more UCO than it collects, suggesting potential fraud. Also, some analysts and traders note a big increase in Indonesian virgin UCO exports to the U.S. specifically for biofuels production. Of note: So much UCO is being imported, some predict a building of U.S. soybean oil stocks.
Last week a bipartisan group of six Senators urged the Biden administration to increase scrutiny of UCO imports from China. Concerns have arisen that some of these imports may be fraudulent, blended with virgin oils like palm oil, which have higher carbon intensity and are linked to deforestation. This could undermine U.S. renewable fuel policies by displacing cleaner, domestically grown feedstocks and leveraging U.S. renewable fuel incentives. The lawmakers noted UCO imports into the U.S. have skyrocketed from less than 200 million lbs. annually in 2020 to over 3 billion lbs. in 2023, with more than half coming from China. They emphasized the need for rigorous verification of UCO imports, like the scrutiny domestic feedstocks undergo. The lawmakers pointed out that Europe has already acted against UCO fraud, leading to a shift in shipments to the U.S., where demand for renewable feedstocks is high, particularly in states with clean fuel policies. They urged U.S. agencies to ensure the authenticity of UCO imports and to prevent counterfeit feedstocks from receiving American tax incentives. AgWeb
--------
US Senators Press Federal Agencies On Concerns Over Fraudulent UCO Imports
A bipartisan group of six senators, led by Sen. Roger Marshall, R-Kan., on June 20 send a letter to the U.S. EPA, USDA, U.S. Trade Representative, and U.S. Customers and Board Protection expressing concern with dramatic increases in used cooking oil (UCO) imports from China.
The letter notes that the U.S. imported less than 200 million pounds of UCO in 2020. Imports increased to more than 3 billion pounds in 2023, with more than 50% of imports coming from China.
“As evidenced in recent news coverage, there is concern by some in the renewable fuels industry that large amounts of imported UCO may be a blend of UCO with virgin vegetable oils such as palm oil, which is directly linked to deforestation in Southeast Asia,” the senators wrote. “This would constitute fraudulent value distortion of the commodity designed to take advantage of U.S. tax incentives in addition to renewable identification number (RIN) fraud under the [Renewable Fuel Standard]. If true, this would have an especially punitive effect on U.S. agriculture, as imported UCO bears a lower carbon intensity score than domestically produced agricultural feedstocks, which incur punitive and unnecessary indirect land use change penalties in state and federal programs, as well as onerous verification and reporting requirements required of farmers to validate carbon-friendly practices.” Biodiesel Magazine
--------
Senior US trade officials add to calls for EUDR delay
The US commerce, agriculture and trade representatives have jointly written to the European Commission calling for a delay to incoming EUDR regulations due to ‘critical challenges’ posed for the US timber, paper and pulp industries
Three senior US trade officials have jointly called on the European Union to delay EU Deforestation Regulation (EUDR), which is due to come into force on 30 December 2024.
In a letter to the European Commission seen by The Financial Times, US Secretary of Commerce Gina Raimondo, US Secretary of Agriculture Thomas Vilsack and US Trade Representative Katherine Tai said the law posed ‘critical challenges’ to US producers – particularly in the timber, paper and pulp industries.
EUDR will require businesses importing products to the EU considered ‘main drivers for deforestation’ – including coffee, cocoa, palm oil, paper and wood – to produce a due diligence statement that imports have not contributed to forest degradation anywhere in the world after 31 December 2020.
“We urge the European Commission to delay the implementation of this regulation and subsequent enforcement of penalties until these substantial challenges have been addressed,” the letter said. Meanwhile, the American Forest and Paper Association (AF&PA) said current EUDR laws would impose ‘unachievable requirements’ and ‘significant technical barriers’ on producers that put US-EU trade at risk.
While the latest US objections to EUDR do not explicitly focus on coffee, pressure on the EU to delay or scale back the legislation could have significant ramifications for coffee businesses in both producing and consuming countries. World Coffee Portal
--------
|
|
|
June 24, 2024
Nigeria: The paradox of palm oil importation
The inexcusable irony of Nigeria, an abundantly blessed country with vast natural resources importing the processed products of its raw materials, at exorbitant costs, remains a sad reflection of successive poor leadership, over the decades. As it has played out with crude oil so it has with cocoa beans, coffee, cashew nuts and of course, palm oil.
For instance, it would interest the readers to note that the country which was responsible for about 43% to 60% of the world’s total production of palm oil back in the 1960s currently produces as dismally low as 3.5% globally. In fact, according to the United States Department of Agriculture (USDA), Nigeria stands as the fifth country behind Indonesia ( 50 million mega tons, mmt), Malaysia ( 19mmt), Thailand (3.28 mmt) and Colombia (1.9mmt) and Nigeria (1.4mmt). Also, Nigeria is the largest consumer of palm oil on the African continent but compared with the low level of production it has a deficit of 1.6mmt. That is really unfortunate.
Read also: Nigeria spends $600m annually importing palm oil
The irony plays out further as Nigeria’s importation of palm oil from Malaysia – the country that we provided the seedlings back in the 1960s- increased by 65.3% from January to September, 2023. That amounted to 234,324 mmt. It rose from 141, 786 mmt. That is according to the Malaysian Palm Oil Council. But what is the way forward out of this painful paradox of importing the processed products of what God has graciously blessed us with and at expensive costs?
As Nigeria currently spends a whopping sum of $600 million on the importation of palm oil per annum, the National President of the National Palm Producers Association of Nigeria (NPPAN) , Alphonsus Inyang has described the situation as an unhealthy development. Such large sum spent on the importation should be injected into the sub-sector if the government gives it the desired attention. https://businessday.ng/news/article/nigeria-the-paradox-of-palm-oil-importation/?utm_source=auto-read-also&utm_medium=web
---------
$600m palm oil import: NANS wants FG to revive moribund plantations, woo private investors
The National Association of Nigerian Students (NANS) has called the President Bola Ahmed Tinubu-led administration to return Nigeria to the glory of one of the highest producers and exporters of palm oil in the world by reviving moribund palm plantations in the country.
NANS equally urged the Federal Government to invest heavily in the cultivation of palm trees and processing of palm oil, thereby preventing capital flight over estimated $600m spent by the country to import the product annually.
At a press conference recently, the President, National Palm Produce Association of Nigeria (NPPAN) Mr Alphonsus Inyang disclosed that Nigeria spends 600 million dollars on palm oil imports annually.
While describing the expenses as unhealthy for national development, Inyang said the money could be saved and injected into the economy if the palm oil sub-sector was given due attention by the successive governments.
Reacting to the revelation of NPPAN President in a statement on Sunday, in Abeokuta, the Ogun State capital, the Clerk of the Senate, NANS National, Abdul-yekinn Odunayo, said that the students body found it shocking and alarming to learn that Nigeria spends humongous sum of $600m to import palm oil annually. Sun News Online
--------
Hardship: Intervene, engage market leaders to reduce cost of food – Group to Gov Oborevwori
The Take It Back Movement in Delta State has urged Governor Sheriff Oborevwori to intervene and engage with market leaders and stakeholders to reduce the cost of food items.
The State Coordinator of the Movement, Ighorhiohwunu Aghogho made the call in a statement signed and made available to DAILY POST.
The group asked the governor to implement policies to stabilize food prices as well as subsidize essential food items for low-income families.
t also appealed to the governor to support local farmers to increase food production and establish food banks and relief programs to alleviate the suffering of vulnerable residents.
Take It Back, in the statement, expressed the belief that with the governor’s intervention, food can be made available and affordable for Deltans.
“We can make food affordable for all Deltans. We await swift action to address this critical issue.”
Take It Back said the call became necessary now as soaring prices of garri, beans, and other essentials have left residents starving.
“The Delta Take It Back movement is sounding the alarm on the devastating impact of skyrocketing prices of garri, beans, and other staple foods on residents of Delta State.
“We are calling on Governor Sheriff Oborevwori to take immediate and decisive action to address this crisis, as many Deltans are now struggling to access necessities.” Daily PostNG
---------
CHINA TO INCREASE IMPORTS OF AGRICULTURAL PRODUCTS FROM NIGERIA
China intends to increase imports of agricultural products from Nigeria, writes the Nigerian news agency Nairametrics
Chinese Foreign Minister Wang Yi and his Nigerian counterpart Yusuf Tuggar discussed prospects for co-operation at the first plenary session of the China-Nigeria Intergovernmental Committee held in Beijing
According to the Nigerian Bureau of Statistics (NBS), China is the major source of imports for Nigeria.It is followed byother countries such as India, the United States, Belgium and the Netherlands
The NBS data for the first quarter of 2024 shows that most of the agricultural products were exported to Asia worth $370 million, representing 23.18 per cent of total imports
Further analysis revealed that a total of $54 million and $38 million worth of sesame seeds were exported to China and Japan respectively during the period under review. Naira Metrics
---------
Joining BRICS right thing for Malaysia to do
KUALA LUMPUR: Seeking a formal membership to join BRICS is certainly the right thing for Malaysia to do as the global landscape changes.
The group was founded by its core members of Brazil, Russia, India, China and South Africa, thus the acronym of BRICS, but its membership has expanded very fast as countries search for multi-polar platforms.
A week ago, Thailand submitted its formal request to join the grouping of emerging economies.
It was reported that Thailand hopes to become a member at BRICS’ next summit in Russia in October, which will make the country the first Asean country to do so.
But Malaysia’s entry into BRICS would even be more significant as it will hold the Asean chairmanship next year.
Given Prime Minister Datuk Seri Anwar Ibrahim’s global stature and influence, it would certainly be more significant.
The new members of BRICS have included Saudi Arabia, Iran, Ethiopia, Egypt and the United Arab Emirates with over 30 countries having expressed interest, according to a Reuters report last week.
While there are some commentators, who have expressed concern at Malaysia’s decision to join BRICS, a grouping they said is spearheaded by Russia and China.
They see these two countries which have challenged the world order headed by the United States and its Western allies.
While these worries are understandable, they are not entirely accurate.
India, for example, is regarded to be close to the West and has well-published differences with China, but it also has a reputation for pursuing a fiercely independent foreign policy. The StarMY
--------
Malaysia poised to helm Asean's strategic ties with Europe
ALL eyes in the region are on Kuala Lumpur as Laos is set to hand over the chairmanship of Asean to Malaysia by the end of the year.
A longtime advocate of Asean unity, Malaysia is expected to use its diplomatic clout to deepen economic ties within the region and strengthen its partnerships with key partners.
While thorny issues like palm oil have strained Malaysia's relationship with Europe in recent years, the country's pragmatic foreign policy approach suggests it will continue looking at the bigger picture and prioritise long-term strategic interests.
Under Malaysia's stewardship, Asean integration and outreach to global partners are poised to gain fresh impetus. Leveraging its economic heft and diplomatic gravitas, Kuala Lumpur is uniquely positioned to spearhead initiatives that will shape the region's trajectory for years to come.
At the regional level, Asean's recent Chairs have demonstrated a remarkable alignment in their priorities and focus areas, carrying forward a cohesive vision for regional integration. Early indications are that Malaysia will also include connectivity, advancement of the digital economy, inclusiveness and sustainability as its themes for 2025.
That would surely move the needle on regional economic integration.
As will the completion of the negotiations on an upgrade to the Asean Trade in Goods Agreement, which, from the indications coming out from the negotiators, will be a significant advance over the current agreement. Under its chairmanship, Malaysia will need to ensure that those discussions deliver on a forward-looking agreement that is then fully implemented.
Beyond the intra-Asean scope, work is ongoing to upgrade the Asean-China and Asean-India Free Trade Agreements (FTAs). Given Malaysia's close economic ties with these Asian heavyweights, we can expect the country to play a significant role in those discussions.
Trade is a major topic in the capital cities across the Asean region. In most ministerial meetings, I have observed that the politicians are well-versed in trade and investment numbers, their top trading partners, and where investment funds are coming from. New Straits Times
Nigeria: The paradox of palm oil importation
The inexcusable irony of Nigeria, an abundantly blessed country with vast natural resources importing the processed products of its raw materials, at exorbitant costs, remains a sad reflection of successive poor leadership, over the decades. As it has played out with crude oil so it has with cocoa beans, coffee, cashew nuts and of course, palm oil.
For instance, it would interest the readers to note that the country which was responsible for about 43% to 60% of the world’s total production of palm oil back in the 1960s currently produces as dismally low as 3.5% globally. In fact, according to the United States Department of Agriculture (USDA), Nigeria stands as the fifth country behind Indonesia ( 50 million mega tons, mmt), Malaysia ( 19mmt), Thailand (3.28 mmt) and Colombia (1.9mmt) and Nigeria (1.4mmt). Also, Nigeria is the largest consumer of palm oil on the African continent but compared with the low level of production it has a deficit of 1.6mmt. That is really unfortunate.
Read also: Nigeria spends $600m annually importing palm oil
The irony plays out further as Nigeria’s importation of palm oil from Malaysia – the country that we provided the seedlings back in the 1960s- increased by 65.3% from January to September, 2023. That amounted to 234,324 mmt. It rose from 141, 786 mmt. That is according to the Malaysian Palm Oil Council. But what is the way forward out of this painful paradox of importing the processed products of what God has graciously blessed us with and at expensive costs?
As Nigeria currently spends a whopping sum of $600 million on the importation of palm oil per annum, the National President of the National Palm Producers Association of Nigeria (NPPAN) , Alphonsus Inyang has described the situation as an unhealthy development. Such large sum spent on the importation should be injected into the sub-sector if the government gives it the desired attention. https://businessday.ng/news/article/nigeria-the-paradox-of-palm-oil-importation/?utm_source=auto-read-also&utm_medium=web
---------
$600m palm oil import: NANS wants FG to revive moribund plantations, woo private investors
The National Association of Nigerian Students (NANS) has called the President Bola Ahmed Tinubu-led administration to return Nigeria to the glory of one of the highest producers and exporters of palm oil in the world by reviving moribund palm plantations in the country.
NANS equally urged the Federal Government to invest heavily in the cultivation of palm trees and processing of palm oil, thereby preventing capital flight over estimated $600m spent by the country to import the product annually.
At a press conference recently, the President, National Palm Produce Association of Nigeria (NPPAN) Mr Alphonsus Inyang disclosed that Nigeria spends 600 million dollars on palm oil imports annually.
While describing the expenses as unhealthy for national development, Inyang said the money could be saved and injected into the economy if the palm oil sub-sector was given due attention by the successive governments.
Reacting to the revelation of NPPAN President in a statement on Sunday, in Abeokuta, the Ogun State capital, the Clerk of the Senate, NANS National, Abdul-yekinn Odunayo, said that the students body found it shocking and alarming to learn that Nigeria spends humongous sum of $600m to import palm oil annually. Sun News Online
--------
Hardship: Intervene, engage market leaders to reduce cost of food – Group to Gov Oborevwori
The Take It Back Movement in Delta State has urged Governor Sheriff Oborevwori to intervene and engage with market leaders and stakeholders to reduce the cost of food items.
The State Coordinator of the Movement, Ighorhiohwunu Aghogho made the call in a statement signed and made available to DAILY POST.
The group asked the governor to implement policies to stabilize food prices as well as subsidize essential food items for low-income families.
t also appealed to the governor to support local farmers to increase food production and establish food banks and relief programs to alleviate the suffering of vulnerable residents.
Take It Back, in the statement, expressed the belief that with the governor’s intervention, food can be made available and affordable for Deltans.
“We can make food affordable for all Deltans. We await swift action to address this critical issue.”
Take It Back said the call became necessary now as soaring prices of garri, beans, and other essentials have left residents starving.
“The Delta Take It Back movement is sounding the alarm on the devastating impact of skyrocketing prices of garri, beans, and other staple foods on residents of Delta State.
“We are calling on Governor Sheriff Oborevwori to take immediate and decisive action to address this crisis, as many Deltans are now struggling to access necessities.” Daily PostNG
---------
CHINA TO INCREASE IMPORTS OF AGRICULTURAL PRODUCTS FROM NIGERIA
China intends to increase imports of agricultural products from Nigeria, writes the Nigerian news agency Nairametrics
Chinese Foreign Minister Wang Yi and his Nigerian counterpart Yusuf Tuggar discussed prospects for co-operation at the first plenary session of the China-Nigeria Intergovernmental Committee held in Beijing
According to the Nigerian Bureau of Statistics (NBS), China is the major source of imports for Nigeria.It is followed byother countries such as India, the United States, Belgium and the Netherlands
The NBS data for the first quarter of 2024 shows that most of the agricultural products were exported to Asia worth $370 million, representing 23.18 per cent of total imports
Further analysis revealed that a total of $54 million and $38 million worth of sesame seeds were exported to China and Japan respectively during the period under review. Naira Metrics
---------
Joining BRICS right thing for Malaysia to do
KUALA LUMPUR: Seeking a formal membership to join BRICS is certainly the right thing for Malaysia to do as the global landscape changes.
The group was founded by its core members of Brazil, Russia, India, China and South Africa, thus the acronym of BRICS, but its membership has expanded very fast as countries search for multi-polar platforms.
A week ago, Thailand submitted its formal request to join the grouping of emerging economies.
It was reported that Thailand hopes to become a member at BRICS’ next summit in Russia in October, which will make the country the first Asean country to do so.
But Malaysia’s entry into BRICS would even be more significant as it will hold the Asean chairmanship next year.
Given Prime Minister Datuk Seri Anwar Ibrahim’s global stature and influence, it would certainly be more significant.
The new members of BRICS have included Saudi Arabia, Iran, Ethiopia, Egypt and the United Arab Emirates with over 30 countries having expressed interest, according to a Reuters report last week.
While there are some commentators, who have expressed concern at Malaysia’s decision to join BRICS, a grouping they said is spearheaded by Russia and China.
They see these two countries which have challenged the world order headed by the United States and its Western allies.
While these worries are understandable, they are not entirely accurate.
India, for example, is regarded to be close to the West and has well-published differences with China, but it also has a reputation for pursuing a fiercely independent foreign policy. The StarMY
--------
Malaysia poised to helm Asean's strategic ties with Europe
ALL eyes in the region are on Kuala Lumpur as Laos is set to hand over the chairmanship of Asean to Malaysia by the end of the year.
A longtime advocate of Asean unity, Malaysia is expected to use its diplomatic clout to deepen economic ties within the region and strengthen its partnerships with key partners.
While thorny issues like palm oil have strained Malaysia's relationship with Europe in recent years, the country's pragmatic foreign policy approach suggests it will continue looking at the bigger picture and prioritise long-term strategic interests.
Under Malaysia's stewardship, Asean integration and outreach to global partners are poised to gain fresh impetus. Leveraging its economic heft and diplomatic gravitas, Kuala Lumpur is uniquely positioned to spearhead initiatives that will shape the region's trajectory for years to come.
At the regional level, Asean's recent Chairs have demonstrated a remarkable alignment in their priorities and focus areas, carrying forward a cohesive vision for regional integration. Early indications are that Malaysia will also include connectivity, advancement of the digital economy, inclusiveness and sustainability as its themes for 2025.
That would surely move the needle on regional economic integration.
As will the completion of the negotiations on an upgrade to the Asean Trade in Goods Agreement, which, from the indications coming out from the negotiators, will be a significant advance over the current agreement. Under its chairmanship, Malaysia will need to ensure that those discussions deliver on a forward-looking agreement that is then fully implemented.
Beyond the intra-Asean scope, work is ongoing to upgrade the Asean-China and Asean-India Free Trade Agreements (FTAs). Given Malaysia's close economic ties with these Asian heavyweights, we can expect the country to play a significant role in those discussions.
Trade is a major topic in the capital cities across the Asean region. In most ministerial meetings, I have observed that the politicians are well-versed in trade and investment numbers, their top trading partners, and where investment funds are coming from. New Straits Times
|
|
|
June 22, 2024
East Kalimantan governor encourages Chinese investment in biodiesel plant
Governor of East Kalimantan, Akmal Malik, encouraged Chinese companies to invest in building a biodiesel plant in East Kalimantan, emphasizing the region’s significant palm oil production potential. The offer was conveyed during his recent visit to Huangshan, Anhui Province, China, as part of the Sister-Province Cooperation (Kaltim-Anhui) program.
During the visit, Akmal explored investment opportunities with various companies, including Petroleum LR, a state-owned enterprise and palm oil importer from Anhui. Petroleum LR representatives had previously visited East Kalimantan in May 2024 to assess its palm oil potential.
In their meeting, Petroleum LR expressed an initial requirement of 5,000 tons of crude palm oil (CPO) per month, with plans to increase this to 30,000 tons per month if the supply meets their needs. Akmal welcomed the export plan and urged Petroleum LR to expand their operations by producing various palm oil derivatives.
“East Kalimantan has 1.5 million hectares of oil palm plantations, 106 factories, and a projected 2024 production of 4.59 million tons of CPO and 19.8 million tons of fresh fruit bunches (FFB). Our largest exports are to China and India. We can facilitate palm oil exports through around 112 local companies,” Akmal said on Thursday, June 20, 2024.
He emphasized the lucrative opportunities in producing palm oil derivatives, such as biodiesel, which offer higher profitability compared to raw palm oil exports. Akmal encouraged Petroleum LR to submit long-term purchase proposals, noting that larger business volumes could reduce costs.
Zhou Qiang, General Manager of Shandong Liaohe Huijin Petroleum Sales Co., Ltd, outlined plans to build a plant and port facilities in East Kalimantan, and to collaborate with leading universities on palm oil development. He also noted the potential for expanding into the tropical fruit market, particularly for durians, which are currently primarily supplied to China by Malaysia and Thailand. https://indonesiabusinesspost.com/risks-opportunities/e-kalimantan-governor-encourages-chinese-investment-in-biodiesel-plant/
--------
UECC reduces emissions in 2023 by more than doubling bio bunker fuel use
UECC boosted the use of ISCC-certified sustainable biofuel B100 on both owned and time-chartered ships to 14,000 mt last year, up from 6,500 mt in 2022.
United European Car Carriers (UECC) recently announced its progress of using alternative bunker fuels and said it was on track to exceed its goal of a 45% emissions reduction by 2030 after more than doubling biofuel usage across its fleet last year.
UECC boosted the use of ISCC-certified sustainable biofuel B100 on both owned and time-chartered ships to 14,000 metric tonnes (mt) last year, up from 6,500 mt in 2022.
The company achieved a total tank-to-wake emissions reduction of over 60,000 tonnes across its 14-vessel fleet in 2023, of which it is estimated increased biofuel use accounted for 40,000 tonnes, with the remainder coming from LNG. This was a near-250% increase on the emissions cut of 24,200 tonnes achieved in 2022.
TheEuropean sustainable shortsea carrier said it has made significant strides in decarbonisation of its fleet of pure car and truck carriers (PCTCs) with the addition of five LNG-fuelled newbuilds and the increased rollout of biofuels in recent years - and this is now showing commercial payback for clients in the light of new green regulations, according to Energy and Sustainability Manager Daniel Gent.
“Consequently, we are well on the way to reach or exceed our 45% emissions reduction target by 2030. This clearly has a positive impact for those bio-supportive cargo owners in terms of reducing costs related to the EU Emissions Trading System (EU ETS),” Gent said. https://www.manifoldtimes.com/news/uecc-reduces-emissions-in-2023-by-more-than-doubling-bio-bunker-fuel-use/
--------
White House urges delay of EUDR
21-Jun-2024 By Jane Byrne
The Biden administration has urged the EU to delay the implementation of the EU Deforestation Regulation (EUDR) until its "substantial challenges" are addressed.
HTTPS://WWW.FEEDNAVIGATOR.COM/ARTICLE/2024/06/21/WHITE-HOUSE-URGES-DELAY-OF-EUDR
East Kalimantan governor encourages Chinese investment in biodiesel plant
Governor of East Kalimantan, Akmal Malik, encouraged Chinese companies to invest in building a biodiesel plant in East Kalimantan, emphasizing the region’s significant palm oil production potential. The offer was conveyed during his recent visit to Huangshan, Anhui Province, China, as part of the Sister-Province Cooperation (Kaltim-Anhui) program.
During the visit, Akmal explored investment opportunities with various companies, including Petroleum LR, a state-owned enterprise and palm oil importer from Anhui. Petroleum LR representatives had previously visited East Kalimantan in May 2024 to assess its palm oil potential.
In their meeting, Petroleum LR expressed an initial requirement of 5,000 tons of crude palm oil (CPO) per month, with plans to increase this to 30,000 tons per month if the supply meets their needs. Akmal welcomed the export plan and urged Petroleum LR to expand their operations by producing various palm oil derivatives.
“East Kalimantan has 1.5 million hectares of oil palm plantations, 106 factories, and a projected 2024 production of 4.59 million tons of CPO and 19.8 million tons of fresh fruit bunches (FFB). Our largest exports are to China and India. We can facilitate palm oil exports through around 112 local companies,” Akmal said on Thursday, June 20, 2024.
He emphasized the lucrative opportunities in producing palm oil derivatives, such as biodiesel, which offer higher profitability compared to raw palm oil exports. Akmal encouraged Petroleum LR to submit long-term purchase proposals, noting that larger business volumes could reduce costs.
Zhou Qiang, General Manager of Shandong Liaohe Huijin Petroleum Sales Co., Ltd, outlined plans to build a plant and port facilities in East Kalimantan, and to collaborate with leading universities on palm oil development. He also noted the potential for expanding into the tropical fruit market, particularly for durians, which are currently primarily supplied to China by Malaysia and Thailand. https://indonesiabusinesspost.com/risks-opportunities/e-kalimantan-governor-encourages-chinese-investment-in-biodiesel-plant/
--------
UECC reduces emissions in 2023 by more than doubling bio bunker fuel use
UECC boosted the use of ISCC-certified sustainable biofuel B100 on both owned and time-chartered ships to 14,000 mt last year, up from 6,500 mt in 2022.
United European Car Carriers (UECC) recently announced its progress of using alternative bunker fuels and said it was on track to exceed its goal of a 45% emissions reduction by 2030 after more than doubling biofuel usage across its fleet last year.
UECC boosted the use of ISCC-certified sustainable biofuel B100 on both owned and time-chartered ships to 14,000 metric tonnes (mt) last year, up from 6,500 mt in 2022.
The company achieved a total tank-to-wake emissions reduction of over 60,000 tonnes across its 14-vessel fleet in 2023, of which it is estimated increased biofuel use accounted for 40,000 tonnes, with the remainder coming from LNG. This was a near-250% increase on the emissions cut of 24,200 tonnes achieved in 2022.
TheEuropean sustainable shortsea carrier said it has made significant strides in decarbonisation of its fleet of pure car and truck carriers (PCTCs) with the addition of five LNG-fuelled newbuilds and the increased rollout of biofuels in recent years - and this is now showing commercial payback for clients in the light of new green regulations, according to Energy and Sustainability Manager Daniel Gent.
“Consequently, we are well on the way to reach or exceed our 45% emissions reduction target by 2030. This clearly has a positive impact for those bio-supportive cargo owners in terms of reducing costs related to the EU Emissions Trading System (EU ETS),” Gent said. https://www.manifoldtimes.com/news/uecc-reduces-emissions-in-2023-by-more-than-doubling-bio-bunker-fuel-use/
--------
White House urges delay of EUDR
21-Jun-2024 By Jane Byrne
The Biden administration has urged the EU to delay the implementation of the EU Deforestation Regulation (EUDR) until its "substantial challenges" are addressed.
HTTPS://WWW.FEEDNAVIGATOR.COM/ARTICLE/2024/06/21/WHITE-HOUSE-URGES-DELAY-OF-EUDR
|
|
|
June 21, 2024
US Senators Grassley, Marshall Seek Answers From Biden Admin On Surge In Used Cooking Oil Imports
Bipartisan senators concerned about potentially fraudulent Chinese products, impacts for domestic feedstock industry and environmental consequences
WASHINGTON – Sen. Chuck Grassley (R-Iowa), a member of the Senate Agriculture and Finance committees, today joined Sen. Roger Marshall (R-Kan.) to press the Biden administration on the steps it’s taking to address the recent surge in used cooking oil (UCO) imports. The U.S. last year imported 3 billion pounds of UCO, half of which came from China; that’s up from a total of 200 million pounds imported in 2020.
The senators’ letter to the Environmental Protection Agency (EPA), Department of Agriculture (USDA), the U.S. Trade Representative (USTR) and Customs and Border Protection (CBP) reads, in part:
“[…] There is concern by some in the renewable fuels industry that large amounts of imported UCO may be a blend of UCO with virgin vegetable oils such as palm oil, which is directly linked to deforestation in Southeast Asia. This would constitute fraudulent value distortion of the commodity designed to take advantage of U.S. tax incentives in addition to Renewable Identification Number (RIN) fraud under the RFS.
“[…] We are concerned with the lack of transparency surrounding the United States’ efforts in the area of verifying imported UCO, specifically as it relates to 1) ensuring the integrity of the imported UCO by validating that traceability requirements have been met; and 2) evaluating the chemical composition of the imported UCO.”
Grassley and his colleagues further note taxpayers subsidize certain feedstocks through clean fuel policies. The lawmakers are seeking to ensure the integrity of those programs is intact, and that they adequately root out counterfeits. https://www.grassley.senate.gov/news/news-releases/grassley-marshall-seek-answers-from-biden-admin-on-surge-in-used-cooking-oil-imports
--------
Malaysian Minister Calls for establishment of more centralised biogas plants
MUAR: The Ministry of Plantation and Commodities hopes that more centralised biogas plants can be established by industry players to maximise the use of oil palm waste for generating renewable energy.
Deputy Minister Datuk Chan Foong Hin said that such facilities could be the best method for renewable energy sources in Malaysia, utilising advanced technology to convert raw palm oil mill effluent into clean energy.
“Biogas in energy generation is a transformative agenda bridging agriculture and advancing technology, and in this context, centralised plants are increasingly necessary due to the significant scale of the oil palm industry in Malaysia.
“Therefore, establishing a biogas centre in areas owned by several oil palm plantation owners indirectly leads to more optimal economies of scale and cost savings,“ he told reporters after opening Malaysia’s first centralised biogas plant in Bukit Pasir today.
Specific areas like Pagoh and Muar are seen as highly suitable for having such centralised plants because there are several palm oil mills within a 70-kilometre radius. This makes it more cost-effective for oil palm operators to manage palm oil waste for biogas production. https://thesun.my/local-news/call-for-establishment-of-more-centralised-biogas-plants-GP12598871
--------
Accelerating ISPO Certification for Independent Oil Palm Smallholders through a Jurisdictional Approach
PALMOILMAGAZINE, JAKARTA – The National Action Plan for Sustainable Palm Oil (NAP SPO) which has been running until 2024, provides a mandate for the Central Government and Regional Governments, to carry out a series of efforts to improve governance with action plan program services and financed through APBN, APBD instruments, and multi-stakeholder cooperation support.
Although in reality, the adoption of the policy of the KSB Action Plan at the regional level is still very minimal, to date only 9 provinces and 19 districts have stipulated the policy.
As a result, the existence of Indonesia Sustainable Palm Oil (ISPO) certification has stagnated, only about 0.3 percent of the national oil palm plantation area can do it. Various efforts made by the Government in collaboration with various parties have become the main drivers of ISPO certification for oil palm smallholders. The idea of a juridical approach is one option, to accelerate the ISPO certification process for national oil palm plantations.
Click to read: https://www.palmoilmagazine.com/smallholders/2024/06/21/accelerating-ispo-certification-for-independent-oil-palm-smallholders-through-a-jurisdictional-approach/
--------
Palm oil certification in Indonesia has only reached 35.6 percent under ISPO
InfoSAWIT, JAKARTA – Direktur Pengolahan dan Pemasaran Hasil Perkebunan (PPHBun), Prayudi Syamsuri, mengungkapkan bahwa implementasi Perkebunan Kelapa Sawit Berkelanjutan Indonesia (ISPO) baru mencapai 35,6 persen.
Menurut dia, per April 2024 telah sebanyak 1.077 pelaku usaha perkebunan kelapa sawit yang berhasil memperoleh sertifikat ISPO. Data tersebut mencakup 80 perusahaan perkebunan besar negara (PBN) dengan luas mencapai 390.834,71 hektar, 909 perusahaan perkebunan besar swasta (PBS) yang mengelola sekitar 5.392.992,41 hektar, dan 88 pekebun perkebunan rakyat (PR) dengan total luas mencapai 59.717,88 hektar.
“Luas lahan perkebunan kelapa sawit yang telah tersertifikasi ISPO mencapai 5.843.544,89 hektar, yang setara dengan implementasi ISPO sebesar 35,67% dari total tutupan sawit sesuai KepMentan 833 Tahun 2019,” ungkap Prayudi dalam sebuah acara workshop bertema “Best Practices Perkebunan Berkelanjutan Berbasis Pendekatan Yurisdiksi” yang diselenggarakan oleh SPKS dan Kaleka, pada Kamis (20/6/2024) di Jakarta, dihadiri InfoSAWIT. https://www.infosawit.com/2024/06/21/per-april-2024-lahan-bersertifikat-ispo-baru-capai-356-persen-dari-total-lahan-sawit-nasional/#google_vignette
--------
The EU needs to torch its regulations to regain global competitiveness
By Adam Bartha, Director of EPICENTER, the network of leading European free-market think tanks.
EU legislation increased by more than 700% since the implementation of the Maastricht Treaty 30 years ago and by more than 100% since the Treaty of Lisbon came into effect in 2010. The period of exorbitant regulation increase also coincided with the sluggish economic growth of many old member states. To regain our economic competitiveness, and to avoid lagging behind peers such as the United States and China, the next European Commission has to start with a bonfire of regulations and ensure that the Single Market is complete.
The wise old men of Europe, with Mario Draghi and Enrico Letta at their helm, have been tasked with the commendable task of finding out why Europe is falling behind its rivals and what can policymakers do about this worrying trend. Sometime a picture can tell a thousand words and when it comes to the slowing economic competitiveness of the EU, this is certainly the case. https://www.brusselsreport.eu/2024/06/19/the-eu-needs-a-bonfire-of-regulations-to-regain-its-competitiveness/
US Senators Grassley, Marshall Seek Answers From Biden Admin On Surge In Used Cooking Oil Imports
Bipartisan senators concerned about potentially fraudulent Chinese products, impacts for domestic feedstock industry and environmental consequences
WASHINGTON – Sen. Chuck Grassley (R-Iowa), a member of the Senate Agriculture and Finance committees, today joined Sen. Roger Marshall (R-Kan.) to press the Biden administration on the steps it’s taking to address the recent surge in used cooking oil (UCO) imports. The U.S. last year imported 3 billion pounds of UCO, half of which came from China; that’s up from a total of 200 million pounds imported in 2020.
The senators’ letter to the Environmental Protection Agency (EPA), Department of Agriculture (USDA), the U.S. Trade Representative (USTR) and Customs and Border Protection (CBP) reads, in part:
“[…] There is concern by some in the renewable fuels industry that large amounts of imported UCO may be a blend of UCO with virgin vegetable oils such as palm oil, which is directly linked to deforestation in Southeast Asia. This would constitute fraudulent value distortion of the commodity designed to take advantage of U.S. tax incentives in addition to Renewable Identification Number (RIN) fraud under the RFS.
“[…] We are concerned with the lack of transparency surrounding the United States’ efforts in the area of verifying imported UCO, specifically as it relates to 1) ensuring the integrity of the imported UCO by validating that traceability requirements have been met; and 2) evaluating the chemical composition of the imported UCO.”
Grassley and his colleagues further note taxpayers subsidize certain feedstocks through clean fuel policies. The lawmakers are seeking to ensure the integrity of those programs is intact, and that they adequately root out counterfeits. https://www.grassley.senate.gov/news/news-releases/grassley-marshall-seek-answers-from-biden-admin-on-surge-in-used-cooking-oil-imports
--------
Malaysian Minister Calls for establishment of more centralised biogas plants
MUAR: The Ministry of Plantation and Commodities hopes that more centralised biogas plants can be established by industry players to maximise the use of oil palm waste for generating renewable energy.
Deputy Minister Datuk Chan Foong Hin said that such facilities could be the best method for renewable energy sources in Malaysia, utilising advanced technology to convert raw palm oil mill effluent into clean energy.
“Biogas in energy generation is a transformative agenda bridging agriculture and advancing technology, and in this context, centralised plants are increasingly necessary due to the significant scale of the oil palm industry in Malaysia.
“Therefore, establishing a biogas centre in areas owned by several oil palm plantation owners indirectly leads to more optimal economies of scale and cost savings,“ he told reporters after opening Malaysia’s first centralised biogas plant in Bukit Pasir today.
Specific areas like Pagoh and Muar are seen as highly suitable for having such centralised plants because there are several palm oil mills within a 70-kilometre radius. This makes it more cost-effective for oil palm operators to manage palm oil waste for biogas production. https://thesun.my/local-news/call-for-establishment-of-more-centralised-biogas-plants-GP12598871
--------
Accelerating ISPO Certification for Independent Oil Palm Smallholders through a Jurisdictional Approach
PALMOILMAGAZINE, JAKARTA – The National Action Plan for Sustainable Palm Oil (NAP SPO) which has been running until 2024, provides a mandate for the Central Government and Regional Governments, to carry out a series of efforts to improve governance with action plan program services and financed through APBN, APBD instruments, and multi-stakeholder cooperation support.
Although in reality, the adoption of the policy of the KSB Action Plan at the regional level is still very minimal, to date only 9 provinces and 19 districts have stipulated the policy.
As a result, the existence of Indonesia Sustainable Palm Oil (ISPO) certification has stagnated, only about 0.3 percent of the national oil palm plantation area can do it. Various efforts made by the Government in collaboration with various parties have become the main drivers of ISPO certification for oil palm smallholders. The idea of a juridical approach is one option, to accelerate the ISPO certification process for national oil palm plantations.
Click to read: https://www.palmoilmagazine.com/smallholders/2024/06/21/accelerating-ispo-certification-for-independent-oil-palm-smallholders-through-a-jurisdictional-approach/
--------
Palm oil certification in Indonesia has only reached 35.6 percent under ISPO
InfoSAWIT, JAKARTA – Direktur Pengolahan dan Pemasaran Hasil Perkebunan (PPHBun), Prayudi Syamsuri, mengungkapkan bahwa implementasi Perkebunan Kelapa Sawit Berkelanjutan Indonesia (ISPO) baru mencapai 35,6 persen.
Menurut dia, per April 2024 telah sebanyak 1.077 pelaku usaha perkebunan kelapa sawit yang berhasil memperoleh sertifikat ISPO. Data tersebut mencakup 80 perusahaan perkebunan besar negara (PBN) dengan luas mencapai 390.834,71 hektar, 909 perusahaan perkebunan besar swasta (PBS) yang mengelola sekitar 5.392.992,41 hektar, dan 88 pekebun perkebunan rakyat (PR) dengan total luas mencapai 59.717,88 hektar.
“Luas lahan perkebunan kelapa sawit yang telah tersertifikasi ISPO mencapai 5.843.544,89 hektar, yang setara dengan implementasi ISPO sebesar 35,67% dari total tutupan sawit sesuai KepMentan 833 Tahun 2019,” ungkap Prayudi dalam sebuah acara workshop bertema “Best Practices Perkebunan Berkelanjutan Berbasis Pendekatan Yurisdiksi” yang diselenggarakan oleh SPKS dan Kaleka, pada Kamis (20/6/2024) di Jakarta, dihadiri InfoSAWIT. https://www.infosawit.com/2024/06/21/per-april-2024-lahan-bersertifikat-ispo-baru-capai-356-persen-dari-total-lahan-sawit-nasional/#google_vignette
--------
The EU needs to torch its regulations to regain global competitiveness
By Adam Bartha, Director of EPICENTER, the network of leading European free-market think tanks.
EU legislation increased by more than 700% since the implementation of the Maastricht Treaty 30 years ago and by more than 100% since the Treaty of Lisbon came into effect in 2010. The period of exorbitant regulation increase also coincided with the sluggish economic growth of many old member states. To regain our economic competitiveness, and to avoid lagging behind peers such as the United States and China, the next European Commission has to start with a bonfire of regulations and ensure that the Single Market is complete.
The wise old men of Europe, with Mario Draghi and Enrico Letta at their helm, have been tasked with the commendable task of finding out why Europe is falling behind its rivals and what can policymakers do about this worrying trend. Sometime a picture can tell a thousand words and when it comes to the slowing economic competitiveness of the EU, this is certainly the case. https://www.brusselsreport.eu/2024/06/19/the-eu-needs-a-bonfire-of-regulations-to-regain-its-competitiveness/
|
|
|
June 20, 2024
US Urges EU To Delay Anti-deforestation Law
The United States has called on the European Union to delay a ban on imports of products driving deforestation, saying it would harm American producers unable to comply, the European Commission said Thursday.
The EU law, set to take effect at the end of December, will bar a vast range of goods -- from coffee to cocoa, soy, timber, palm oil, cattle, printing paper and rubber -- if produced using land that was deforested after December 2020.
The US call adds to concerns voiced by South American, Asian and African countries, and from within the EU itself, about the administrative burden the new law places on farmers and the forestry sector.
The EU is the second-biggest market for consumption of the targeted products after China.
Firms importing the merchandise in question to the 27-nation EU will be responsible for tracking up their supply chains to prove goods did not originate from deforested zones, relying on geolocation and satellite data.
According to the Financial Times, US Commerce Secretary Gina Raimondo, Agriculture Secretary Tom Vilsack, and Trade Representative Katherine Tai wrote to the European Commission in late May to request a delay. www.barrons.com/news/us-urges-eu-to-delay-anti-deforestation-law-62bdb64c
---------
Indonesia has restored 5.5 million hectares of peatlands: Ministry
Jakarta (ANTARA) - The Ministry of Environment and Forestry stated that Indonesia had so far successfully restored 5.5 million hectares of peatlands.
“In the last 10 years, we have succeeded in busting the myth that peatlands cannot be restored,” the ministry’s Director General of Environmental Pollution and Damage, Sigit Reliantoro, stated during an online discussion monitored here on Wednesday.
At the event held to discuss peatland management and restoration, he noted that Indonesia bore witness to major incidents of forest and land fires, including in 2015, during which 2.6 million hectares of land had been ravaged.
Reliantoro noted that in the last decade, the Indonesian government has applied strategies for the prevention and restoration of damaged peatland ecosystems.
Moreover, the government has taken legal action against individuals and corporations proven to be involved in peatland ecosystem damage in the country.
As of 2023, the Ministry of Environment and Forestry had carried out an inventory for 300 peatland hydrological units (KHG), with an area of 15.42 million hectares out of a total of 24.67 million hectares.
"We have also restored peatland ecosystems, especially hydrologically, in concession areas, reaching 3.9 million hectares spread across 73 industrial plantation forests and 259 palm oil plantations," he explained. https://en.antaranews.com/amp/news/316380/indonesia-has-restored-55-million-hectares-of-peatlands-ministry
--------
Papuan tribe, palm oil firms battle for land rights in Indonesian top court
JAKARTA, June 20 (Reuters) - In a jungled corner of Indonesia's Papua, the Awyu tribe await a Supreme Court verdict that will determine whether thousands of hectares of rainforest will be cleared for a vast palm oil concession to be planted atop the graves of their ancestors.
"Birds of paradise, cassowaries... sacred places, and the paths of our ancestors are there," said Awyu man, Hendrikus 'Franky' Woro. "If the graves of our ancestors are removed, we will be committing a sin against them."
At stake in three cases being decided by the court is the fate of nearly 115,000 hectares of forest, part of the single largest, collective palm oil bloc in the world's largest palm oil exporter, Indonesia.
Located in Papua's Boven Digoel, the 270,000-hectare bloc is divided into seven concessions, three of which are now legally contested. https://www.reuters.com/world/asia-pacific/papuan-tribe-palm-oil-firms-battle-land-rights-indonesian-top-court-2024-06-20/
--------
Is it true that oil palm plantations are the largest monoculture crops in the world?.. (Myth 2-04)
In general, the world's main agricultural commodities are cultivated in monoculture. Wheat, corn, beans, rice and other crops grown in various countries are cultivated in monoculture. According to USDA data (2022), the world wheat area reached 221 million hectares, the world corn area reached 202 million hectares, and the world rice area reached 167 million hectares (Figure 3). Likewise, the world's vegetable oil crops, namely soybeans, rapeseed, sunflowers and oil palm, are also cultivated in monoculture.
Based on this data, it shows that world oil palm plantations are not the largest monoculture plantations in the world. Wheat, corn, rice and other vegetable oil crops are still much wider than oil palm.
Monoculture cultivation in the agricultural sector is considered rational because it has the advantage of being able to achieve economies of scale and produce high productivity. It must be acknowledged that monoculture cultivation also has weaknesses, including the risk of disease and biodiversity issues.
Oil palm plantations cannot actually be categorized as pure monocultures like other vegetable oil crops. In the planting and maintenance phase of Immature Plants (TBM), in between the oil palm plants, cover crops in the form of legumes are planted (Prawirosukarto et al., 2005; Yasin et al., 2006; PASPI Monitor, 2021 x ). Apart from that, oil palm plantation business actors also developed various integration patterns such as integration of oil palm with food crops (Partohardjono, 2003; Singerland et al., 2019; Baihaqi et al., 2020; Kusumawati et al., 2021) during the TBM/ Immature period and palm oil-livestock integration in the Mature Crop phase (Batubara, 2004; Sinurat et al ., 2004; Ilham and Saliem, 2011; Utomo and Widjaja, 2012; Winarso and Basuno, 2013). https://gapki.id/news/2024/06/20/di-dunia-ini-benarkah-sawit-itu-monokultur-yang-paling-luas/
---------
Palm Oil Producers Lobby to Cut Nigeria’s $600m Per Year Import Dependence
The National Palm Produce Association of Nigeria (NPPAN) is lobbying to cut down the $600 million the country spends annually to import the product.
Mr Alphonsus Inyang, National President of the association, in an interview with the News Agency of Nigeria (NAN) on Tuesday in Abuja, stated the expenses are unhealthy for national development.
Mr Inyang said the money could be saved and injected into the economy if the palm oil sub-sector was given due attention by successive governments.
The president regretted that Nigeria, which was self-sufficient in palm oil production in the past, now spends a huge amount to import the same product.
Mr Inyang recalled that in the 60s, Nigeria was number one in palm oil production and exportation globally, controlling over 60 per cent of world palm oil.
He said that the reverse was the case at the moment as over 50 per cent of what the country consumes is imported.
Mr Inyang said that based on data from the US Department of Agriculture, Nigeria currently occupies fifth position in the league of palm-oil-producing countries with 1.5 per cent or 1.4 million metric tons of the world’s total output.
“At the moment, the country occupies the fifth position in the league of palm-oil-producing countries after Indonesia, Malaysia, Thailand and Colombia.
“Nigeria may even lose the position to smaller countries who are investing heavily in the sector. https://businesspost.ng/economy/palm-oil-producers-lobby-to-cut-nigerias-600m-per-year-import-dependence/
US Urges EU To Delay Anti-deforestation Law
The United States has called on the European Union to delay a ban on imports of products driving deforestation, saying it would harm American producers unable to comply, the European Commission said Thursday.
The EU law, set to take effect at the end of December, will bar a vast range of goods -- from coffee to cocoa, soy, timber, palm oil, cattle, printing paper and rubber -- if produced using land that was deforested after December 2020.
The US call adds to concerns voiced by South American, Asian and African countries, and from within the EU itself, about the administrative burden the new law places on farmers and the forestry sector.
The EU is the second-biggest market for consumption of the targeted products after China.
Firms importing the merchandise in question to the 27-nation EU will be responsible for tracking up their supply chains to prove goods did not originate from deforested zones, relying on geolocation and satellite data.
According to the Financial Times, US Commerce Secretary Gina Raimondo, Agriculture Secretary Tom Vilsack, and Trade Representative Katherine Tai wrote to the European Commission in late May to request a delay. www.barrons.com/news/us-urges-eu-to-delay-anti-deforestation-law-62bdb64c
---------
Indonesia has restored 5.5 million hectares of peatlands: Ministry
Jakarta (ANTARA) - The Ministry of Environment and Forestry stated that Indonesia had so far successfully restored 5.5 million hectares of peatlands.
“In the last 10 years, we have succeeded in busting the myth that peatlands cannot be restored,” the ministry’s Director General of Environmental Pollution and Damage, Sigit Reliantoro, stated during an online discussion monitored here on Wednesday.
At the event held to discuss peatland management and restoration, he noted that Indonesia bore witness to major incidents of forest and land fires, including in 2015, during which 2.6 million hectares of land had been ravaged.
Reliantoro noted that in the last decade, the Indonesian government has applied strategies for the prevention and restoration of damaged peatland ecosystems.
Moreover, the government has taken legal action against individuals and corporations proven to be involved in peatland ecosystem damage in the country.
As of 2023, the Ministry of Environment and Forestry had carried out an inventory for 300 peatland hydrological units (KHG), with an area of 15.42 million hectares out of a total of 24.67 million hectares.
"We have also restored peatland ecosystems, especially hydrologically, in concession areas, reaching 3.9 million hectares spread across 73 industrial plantation forests and 259 palm oil plantations," he explained. https://en.antaranews.com/amp/news/316380/indonesia-has-restored-55-million-hectares-of-peatlands-ministry
--------
Papuan tribe, palm oil firms battle for land rights in Indonesian top court
JAKARTA, June 20 (Reuters) - In a jungled corner of Indonesia's Papua, the Awyu tribe await a Supreme Court verdict that will determine whether thousands of hectares of rainforest will be cleared for a vast palm oil concession to be planted atop the graves of their ancestors.
"Birds of paradise, cassowaries... sacred places, and the paths of our ancestors are there," said Awyu man, Hendrikus 'Franky' Woro. "If the graves of our ancestors are removed, we will be committing a sin against them."
At stake in three cases being decided by the court is the fate of nearly 115,000 hectares of forest, part of the single largest, collective palm oil bloc in the world's largest palm oil exporter, Indonesia.
Located in Papua's Boven Digoel, the 270,000-hectare bloc is divided into seven concessions, three of which are now legally contested. https://www.reuters.com/world/asia-pacific/papuan-tribe-palm-oil-firms-battle-land-rights-indonesian-top-court-2024-06-20/
--------
Is it true that oil palm plantations are the largest monoculture crops in the world?.. (Myth 2-04)
In general, the world's main agricultural commodities are cultivated in monoculture. Wheat, corn, beans, rice and other crops grown in various countries are cultivated in monoculture. According to USDA data (2022), the world wheat area reached 221 million hectares, the world corn area reached 202 million hectares, and the world rice area reached 167 million hectares (Figure 3). Likewise, the world's vegetable oil crops, namely soybeans, rapeseed, sunflowers and oil palm, are also cultivated in monoculture.
Based on this data, it shows that world oil palm plantations are not the largest monoculture plantations in the world. Wheat, corn, rice and other vegetable oil crops are still much wider than oil palm.
Monoculture cultivation in the agricultural sector is considered rational because it has the advantage of being able to achieve economies of scale and produce high productivity. It must be acknowledged that monoculture cultivation also has weaknesses, including the risk of disease and biodiversity issues.
Oil palm plantations cannot actually be categorized as pure monocultures like other vegetable oil crops. In the planting and maintenance phase of Immature Plants (TBM), in between the oil palm plants, cover crops in the form of legumes are planted (Prawirosukarto et al., 2005; Yasin et al., 2006; PASPI Monitor, 2021 x ). Apart from that, oil palm plantation business actors also developed various integration patterns such as integration of oil palm with food crops (Partohardjono, 2003; Singerland et al., 2019; Baihaqi et al., 2020; Kusumawati et al., 2021) during the TBM/ Immature period and palm oil-livestock integration in the Mature Crop phase (Batubara, 2004; Sinurat et al ., 2004; Ilham and Saliem, 2011; Utomo and Widjaja, 2012; Winarso and Basuno, 2013). https://gapki.id/news/2024/06/20/di-dunia-ini-benarkah-sawit-itu-monokultur-yang-paling-luas/
---------
Palm Oil Producers Lobby to Cut Nigeria’s $600m Per Year Import Dependence
The National Palm Produce Association of Nigeria (NPPAN) is lobbying to cut down the $600 million the country spends annually to import the product.
Mr Alphonsus Inyang, National President of the association, in an interview with the News Agency of Nigeria (NAN) on Tuesday in Abuja, stated the expenses are unhealthy for national development.
Mr Inyang said the money could be saved and injected into the economy if the palm oil sub-sector was given due attention by successive governments.
The president regretted that Nigeria, which was self-sufficient in palm oil production in the past, now spends a huge amount to import the same product.
Mr Inyang recalled that in the 60s, Nigeria was number one in palm oil production and exportation globally, controlling over 60 per cent of world palm oil.
He said that the reverse was the case at the moment as over 50 per cent of what the country consumes is imported.
Mr Inyang said that based on data from the US Department of Agriculture, Nigeria currently occupies fifth position in the league of palm-oil-producing countries with 1.5 per cent or 1.4 million metric tons of the world’s total output.
“At the moment, the country occupies the fifth position in the league of palm-oil-producing countries after Indonesia, Malaysia, Thailand and Colombia.
“Nigeria may even lose the position to smaller countries who are investing heavily in the sector. https://businesspost.ng/economy/palm-oil-producers-lobby-to-cut-nigerias-600m-per-year-import-dependence/
|
|
|
June 19, 2024
Europe must prepare for five years of radical change
It otherwise risks being left behind by the US and China
LAURENCE BOONE
If the result of the European elections in France turned democratic life upside down, the centre of gravity of the European parliament ultimately did not move much. Nonetheless, the next European executive must prepare for major upheaval in the near future.
This five-year European mandate should be one of “radical change”, to use the words of Mario Draghi, former president of the European Central Bank. Three themes will dominate the agenda: a change of economic paradigm to boost European competitiveness; accelerating and consolidating the European defence industry; and enlargement.
Boosting competitiveness is urgent. China has had an aggressive industrial policy for decades: subsidies, internal demand compression and managing exchange rates have been used to its competitive advantage in defiance of all the rules of international trade. It also invests massively in research to establish dominance in many areas, notably renewable energies and electric vehicles. www.ft.com/content/ffe369ac-172d-4b99-9db2-1431d60d5c22
---------
Caobisco issues plea to EU Commission president on EUDR deforestation laws
The European confectionery trade body, Caobisco, has issued an urgent plea to EU Commission president Ursula von der Leyen over significant concerns surrounding the implementation of the upcoming EUDR supply chain legislation, reports Neill Barston.
According to the Brussels-based organisation, which is set to return as a key partner for this year’s World Confectionery Conference this September, there are a number of compliance concerns surrounding the groundbreaking new European environmental laws.
The new framework is due to come into force at the end of this year, but a number of EU nations, as well as industry partner governments in South East Asian palm oil producing nations, over how the new system will be governed, and the effectiveness of satellite mapping at the heart of the scheme.
As Caobisco noted, its member companies are fully committed to the successful implementation of the new regulations, with the thousands of businesses part of the organisation already taking steps to mitigate and minimise the risk of deforestation in their supply chains while mobilising significant resources to prepare for compliance.
In its letter addressing the EU Commission president, Coabisco said: “The date of application of the EUDR is approaching at full speed, while several key components are still further delayed or lacking clarity. This is particularly concerning as companies rely on legal clarity to further adapt their systems, processes and organisational resources to the EUDR requirements and ensure a high level of preparedness. https://www.confectioneryproduction.com/news/48660/caobisco-issues-plea-to-eu-commission-president-on-eudr-deforestation-laws/
--------
Hindustan Unilever’s 25% palm oil cut in soaps may seriously impact smallholders, Asian Palm Oil Alliance warns
KUALA LUMPUR (June 18): Hindustan Unilever Ltd’s (HUL) decision to reduce palm oil content in its soaps by 25% could have serious implications for millions of oil palm farmers worldwide, particularly smallholders, a grouping of five major palm oil importing countries in Asia — India, Pakistan, Sri Lanka, Bangladesh and Nepal — warned.
In a statement on Tuesday, the not-for-profit Asian Palm Oil Alliance (APOA) said it has urged HUL to reconsider its decision, highlighting the broader impact on the incomes of small-scale farmers dependent on oil palm cultivation. HUL, a unit of British-Dutch company Unilever, is India's largest fast-moving consumer goods company.
India primarily imports palm oil from Indonesia, Malaysia, and Thailand. According to data from the Malaysian Palm Oil Board, Malaysia exported 2.81 million tonnes of palm oil to India in 2023, accounting for 72% of Malaysia’s total palm oil exports to the South Asian region. https://theedgemalaysia.com/node/715830
--------
Industry body raises concerns over HUL’s decision to reduce palm oil content in soaps
Updated - June 18, 2024 at 06:24 PM.
APOA recommended that HUL provide transparent evidence comparing the environmental impacts of palm oil and its substitutes and stressed the need to support smallholders
BY BL MANGALURU BUREAU
The Asian Palm Oil Alliance (APOA) has expressed concerns over the reported plans of Hindustan Unilever Ltd (HUL) to reduce the palm oil content in its soaps by 25 per cent.
In a letter to Rohit Jawa, Chief Executive Officer and Managing Director of HUL, Atul Chaturvedi, Chairman of APOA, it cited media reports that mentioned HUL’s decision to reduce palm oil content in its soaps by 25 per cent.
Chaturvedi said this decision, which has been attributed to increased palm oil prices and environmental considerations, has significant implications for both the industry and sustainable development efforts.
Rising input costsAcknowledging that palm oil prices are currently higher than before the pandemic, he said this increase is primarily due to rising input costs. Palm oil prices are influenced by other edible oil prices, such as soyabean oil and sunflower oil. “To single out palm oil for unwarranted criticism appears a bit unfair and uncalled for. Moreover, commodity prices are influenced by demand and supply factors and palm oil is no different,” he said. https://www.thehindubusinessline.com/economy/agri-business/industry-body-raises-concerns-over-huls-decision-to-reduce-palm-oil-content-in-soaps/article68303634.ece
--------
Draconian Policy Against Palm Oil
Palm oil has long been a key trade priority for Indonesia. However, as the fourth most populous country in the world, Indonesia is increasingly concerned about the intensifying negative campaigns against palm oil. These campaigns are driven by NGOs, competing vegetable oil industries, and governments at both central and regional levels in various countries. For instance, the European Union (EU) adopted the Renewable Energy Directive II (RED II), which arbitrarily categorizes palm oil as a high "Indirect Land Use Change" (ILUC) risk commodity. This directive mandates a reduction in palm oil consumption in the EU starting in 2021, aiming for its eventual elimination by December 31, 2030.
More recently, the EU introduced the EU Deforestation Regulation (EUDR), a policy framework aimed at reducing the environmental impact of deforestation. The EUDR requires operators and traders who place seven commodities (palm oil, coffee, cocoa, rubber, wood, soy, and cattle) on the EU market or export them from the EU to prove that these products are legal and do not come from land deforested or degraded after December 31, 2020.
Elsewhere, Norway has excluded palm oil biofuel from government procurement processes, a regional state in Pakistan proposed a tariff increase on palm oil for health-related reasons, and India has repeatedly raised its import tariffs on palm oil due to domestic political considerations. This situation evokes the beggar-thy-neighbor policy, where one country addresses its economic issues through measures that often exacerbate the economic difficulties of other nations.
For producing countries, palm oil represents more than just a commodity. The palm oil sector provides livelihoods for 16 million Indonesians through direct and indirect employment. Small farmers in rural and remote areas are heavily involved in palm plantations, comprising 42 percent in Indonesia, 40 percent in Malaysia, and 80 percent in Nigeria. In Indonesia alone, about 61 cities and small towns rely on this sector for their development and sustenance. Additionally, palm oil is a crucial source of export revenue for Indonesia, generating around $ 22.67 billion in 2023, with the EU, China, and India being the primary export destinations. https://jakartaglobe.id/opinion/draconian-policy-against-palm-oil
---------
Western Multinationals Fleeing Nigeria Are Being Replaced by Asian and Turkish Firms
(Bloomberg) -- As US and Europe-based multinationals exit Nigeria, Asian and local companies are stepping in to fill the void.
Last week, London-based Diageo Plc sold its controlling stake in Guinness Nigeria Plc to Singapore’s Tolaram Group Inc. The Fouani Group, a local firm, operates a diaper and sanitary pad plant in a complex where Cincinnati-based Procter & Gamble Co. shuttered a $300 million facility making the same products.
Lagos-based Fidson Healthcare Plc is expanding its manufacturing range after the UK’s GSK Plc closed its Nigerian distribution arm. Turkish diaper-maker Hayat Kimya AS has also established itself in Nigeria.
Nigeria, with a population of more than 200 million, is Africa’s most populous nation, in theory presenting a huge market for consumer goods. But rampant unemployment, widespread poverty and insecurity, a plummeting currency, sky-high inflation and decades of economic mismanagement have turned it into a graveyard for multinational consumer goods companies.
The naira has swung wildly in recent months and is 56% down against the dollar over the past year, the most of any African currency. That’s made it difficult for companies that import goods and service foreign debts to make a profit as they struggle to pass the necessary price increases to consumers. And while the central bank has now cleared a $7 billion backlog that companies were seeking to repatriate the difficulty in doing so in recent years made many businesses unsustainable. https://www.bnnbloomberg.ca/western-multinationals-fleeing-nigeria-are-being-replaced-by-asian-and-turkish-firms-1.2086495
--------
Europe must prepare for five years of radical change
It otherwise risks being left behind by the US and China
LAURENCE BOONE
If the result of the European elections in France turned democratic life upside down, the centre of gravity of the European parliament ultimately did not move much. Nonetheless, the next European executive must prepare for major upheaval in the near future.
This five-year European mandate should be one of “radical change”, to use the words of Mario Draghi, former president of the European Central Bank. Three themes will dominate the agenda: a change of economic paradigm to boost European competitiveness; accelerating and consolidating the European defence industry; and enlargement.
Boosting competitiveness is urgent. China has had an aggressive industrial policy for decades: subsidies, internal demand compression and managing exchange rates have been used to its competitive advantage in defiance of all the rules of international trade. It also invests massively in research to establish dominance in many areas, notably renewable energies and electric vehicles. www.ft.com/content/ffe369ac-172d-4b99-9db2-1431d60d5c22
---------
Caobisco issues plea to EU Commission president on EUDR deforestation laws
The European confectionery trade body, Caobisco, has issued an urgent plea to EU Commission president Ursula von der Leyen over significant concerns surrounding the implementation of the upcoming EUDR supply chain legislation, reports Neill Barston.
According to the Brussels-based organisation, which is set to return as a key partner for this year’s World Confectionery Conference this September, there are a number of compliance concerns surrounding the groundbreaking new European environmental laws.
The new framework is due to come into force at the end of this year, but a number of EU nations, as well as industry partner governments in South East Asian palm oil producing nations, over how the new system will be governed, and the effectiveness of satellite mapping at the heart of the scheme.
As Caobisco noted, its member companies are fully committed to the successful implementation of the new regulations, with the thousands of businesses part of the organisation already taking steps to mitigate and minimise the risk of deforestation in their supply chains while mobilising significant resources to prepare for compliance.
In its letter addressing the EU Commission president, Coabisco said: “The date of application of the EUDR is approaching at full speed, while several key components are still further delayed or lacking clarity. This is particularly concerning as companies rely on legal clarity to further adapt their systems, processes and organisational resources to the EUDR requirements and ensure a high level of preparedness. https://www.confectioneryproduction.com/news/48660/caobisco-issues-plea-to-eu-commission-president-on-eudr-deforestation-laws/
--------
Hindustan Unilever’s 25% palm oil cut in soaps may seriously impact smallholders, Asian Palm Oil Alliance warns
KUALA LUMPUR (June 18): Hindustan Unilever Ltd’s (HUL) decision to reduce palm oil content in its soaps by 25% could have serious implications for millions of oil palm farmers worldwide, particularly smallholders, a grouping of five major palm oil importing countries in Asia — India, Pakistan, Sri Lanka, Bangladesh and Nepal — warned.
In a statement on Tuesday, the not-for-profit Asian Palm Oil Alliance (APOA) said it has urged HUL to reconsider its decision, highlighting the broader impact on the incomes of small-scale farmers dependent on oil palm cultivation. HUL, a unit of British-Dutch company Unilever, is India's largest fast-moving consumer goods company.
India primarily imports palm oil from Indonesia, Malaysia, and Thailand. According to data from the Malaysian Palm Oil Board, Malaysia exported 2.81 million tonnes of palm oil to India in 2023, accounting for 72% of Malaysia’s total palm oil exports to the South Asian region. https://theedgemalaysia.com/node/715830
--------
Industry body raises concerns over HUL’s decision to reduce palm oil content in soaps
Updated - June 18, 2024 at 06:24 PM.
APOA recommended that HUL provide transparent evidence comparing the environmental impacts of palm oil and its substitutes and stressed the need to support smallholders
BY BL MANGALURU BUREAU
The Asian Palm Oil Alliance (APOA) has expressed concerns over the reported plans of Hindustan Unilever Ltd (HUL) to reduce the palm oil content in its soaps by 25 per cent.
In a letter to Rohit Jawa, Chief Executive Officer and Managing Director of HUL, Atul Chaturvedi, Chairman of APOA, it cited media reports that mentioned HUL’s decision to reduce palm oil content in its soaps by 25 per cent.
Chaturvedi said this decision, which has been attributed to increased palm oil prices and environmental considerations, has significant implications for both the industry and sustainable development efforts.
Rising input costsAcknowledging that palm oil prices are currently higher than before the pandemic, he said this increase is primarily due to rising input costs. Palm oil prices are influenced by other edible oil prices, such as soyabean oil and sunflower oil. “To single out palm oil for unwarranted criticism appears a bit unfair and uncalled for. Moreover, commodity prices are influenced by demand and supply factors and palm oil is no different,” he said. https://www.thehindubusinessline.com/economy/agri-business/industry-body-raises-concerns-over-huls-decision-to-reduce-palm-oil-content-in-soaps/article68303634.ece
--------
Draconian Policy Against Palm Oil
Palm oil has long been a key trade priority for Indonesia. However, as the fourth most populous country in the world, Indonesia is increasingly concerned about the intensifying negative campaigns against palm oil. These campaigns are driven by NGOs, competing vegetable oil industries, and governments at both central and regional levels in various countries. For instance, the European Union (EU) adopted the Renewable Energy Directive II (RED II), which arbitrarily categorizes palm oil as a high "Indirect Land Use Change" (ILUC) risk commodity. This directive mandates a reduction in palm oil consumption in the EU starting in 2021, aiming for its eventual elimination by December 31, 2030.
More recently, the EU introduced the EU Deforestation Regulation (EUDR), a policy framework aimed at reducing the environmental impact of deforestation. The EUDR requires operators and traders who place seven commodities (palm oil, coffee, cocoa, rubber, wood, soy, and cattle) on the EU market or export them from the EU to prove that these products are legal and do not come from land deforested or degraded after December 31, 2020.
Elsewhere, Norway has excluded palm oil biofuel from government procurement processes, a regional state in Pakistan proposed a tariff increase on palm oil for health-related reasons, and India has repeatedly raised its import tariffs on palm oil due to domestic political considerations. This situation evokes the beggar-thy-neighbor policy, where one country addresses its economic issues through measures that often exacerbate the economic difficulties of other nations.
For producing countries, palm oil represents more than just a commodity. The palm oil sector provides livelihoods for 16 million Indonesians through direct and indirect employment. Small farmers in rural and remote areas are heavily involved in palm plantations, comprising 42 percent in Indonesia, 40 percent in Malaysia, and 80 percent in Nigeria. In Indonesia alone, about 61 cities and small towns rely on this sector for their development and sustenance. Additionally, palm oil is a crucial source of export revenue for Indonesia, generating around $ 22.67 billion in 2023, with the EU, China, and India being the primary export destinations. https://jakartaglobe.id/opinion/draconian-policy-against-palm-oil
---------
Western Multinationals Fleeing Nigeria Are Being Replaced by Asian and Turkish Firms
(Bloomberg) -- As US and Europe-based multinationals exit Nigeria, Asian and local companies are stepping in to fill the void.
Last week, London-based Diageo Plc sold its controlling stake in Guinness Nigeria Plc to Singapore’s Tolaram Group Inc. The Fouani Group, a local firm, operates a diaper and sanitary pad plant in a complex where Cincinnati-based Procter & Gamble Co. shuttered a $300 million facility making the same products.
Lagos-based Fidson Healthcare Plc is expanding its manufacturing range after the UK’s GSK Plc closed its Nigerian distribution arm. Turkish diaper-maker Hayat Kimya AS has also established itself in Nigeria.
Nigeria, with a population of more than 200 million, is Africa’s most populous nation, in theory presenting a huge market for consumer goods. But rampant unemployment, widespread poverty and insecurity, a plummeting currency, sky-high inflation and decades of economic mismanagement have turned it into a graveyard for multinational consumer goods companies.
The naira has swung wildly in recent months and is 56% down against the dollar over the past year, the most of any African currency. That’s made it difficult for companies that import goods and service foreign debts to make a profit as they struggle to pass the necessary price increases to consumers. And while the central bank has now cleared a $7 billion backlog that companies were seeking to repatriate the difficulty in doing so in recent years made many businesses unsustainable. https://www.bnnbloomberg.ca/western-multinationals-fleeing-nigeria-are-being-replaced-by-asian-and-turkish-firms-1.2086495
--------
June 18, 2024
CBAM European Union: Impact and Adaptation Strategies for Indonesian Exports
Starting from October 1, 2023, the European Union has begun implementing the Carbon Border Adjustment Mechanism (CBAM). This policy is the realization of the CBAM proposal approved on June 18, 2023, following its submission to the European Parliament and the European Council since July 17, 2021.
The Carbon Border Adjustment Mechanism becomes an European Union instrument to determine the tariff for carbon issued during the production process of imported goods that enter the European Union, while goods affected by CBAM policy are indicated goods that have a high level of carbon emissions in the production process and vulnerable to carbon leakage. The implementation of CBAM will begin with the transnational period from October 1, 2023 – 2024. During this transition, imported products affected by CBAM include cement, steel, iron, aluminum, fertilizer, electricity, and hydrogen.
CBAM is part of the European Union’s efforts to reduce Greenhouse gas (GHG) in realizing an ambitious target, Net Zero Emission in 2050. CBAM, which is classified in the carbon trading mechanism in the European Union, allows carbon emissions in its area to be balanced with efforts to reduce greenhouse gas emissions elsewhere , thus achieving overall carbon emission balance. CBAM is also a form of anticipation of the European Union to the risk of the carbon leakage. Reporting from UNCTAD (2021) carbon leakage occurs when European Union companies move their production places to places with more loose emissions or conditions where imported products from countries with “loose carbon” policies replace original European Union products...https://moderndiplomacy.eu/2024/06/17/cbam-european-union-impact-and-adaptation-strategies-for-indonesian-exports/
--------
European and US used cooking oil demand increasingly unsustainable - analysis
World’s biggest UCO producer, China, soon to run out of UCO as demand from Europe and US soars.
Europe burns through 130,000 barrels of used cooking oil a day - 8 times more than it collects. The US now consumes 40,000 barrels a day.
Global airlines are set to triple demand for UCO by 2030.
Discrepancy between collection and export data for China and Malaysia shows that fraud is likely taking place.
Collecting UCO in China is nearly 30% cheaper than in Europe with the EU's anti-dumping probe ongoing.
The world’s leading used cooking oil (UCO) producer, China, will soon run out of waste oil, as demand from Europe and the US outstrips supply, a new Transport & Environment (T&E) study shows. Stratas Advisors’ research, on behalf of T&E, looks at the collection capacity of the world’s leading UCO producers and finds that China already exports more than half its UCO to be used in European and US cars and trucks. That is before airlines are set to triple demand for UCO by 2030 to meet ‘sustainable’ aviation targets[1]. T&E calls for curbs to unsustainable and dubious imports of UCO...https://www.transportenvironment.org/articles/european-and-us-used-cooking-oil-demand-increasingly-unsustainable-analysis
--------
Thai oil palm smallholders increase production and income from RSPO certification
Oil palm smallholders in Thailand have increased production volumes and their income as a result of Roundtable on Sustainable Palm Oil (RSPO) certification, the RSPO announced.
RSPO certification also helped smallholders reduce environmental, social, and economic impacts, the association said on 21 May.
In 2023, the RSPO commissioned the Prince of Songkla University in Southern Thailand to conduct research into the environmental, economic and social impacts of the Thai palm oil sector as well as looking into the impact of RSPO certification, particularly within the country’s smallholder-dominated landscape.
The oil palm sector in Thailand, the world’s third largest producer of palm oil, is predominantly sustained by smallholders, who manage more than 70% of the country’s total oil palm cultivated area.
According to the Oil Palm Development in Thailand: Trends and Progress of Sustainability Efforts in Palm Oil Production and Procurement report, palm oil production in Thailand has grown annually by 5.64% from 1.893M tonnes in 2012 to 2.960M tonnes....https://www.ofimagazine.com/news/thai-oil-palm-smallholders-increase-production-and-income-from-rspo-certification
--------
Many positives of palm oil untold, leading to misjudgment
LETTERS: A healthy diet must include enough intake of fats. A fat-poor diet can lead to health issues. Nutritionists also advocate that the percentage of energy from fats should not exceed 10 per cent. Too much is also unhealthy. The global demand for edible fats has been growing around 3 per cent yearly, driven by both population growth and the changing diet of the people.
Poor people tend to eat less fat because they cannot afford it as fat is generally more expensive. When palm oil entered the global trade in edible fats around the 80s, the situation changed. More poor people can afford to increase their fat intake. This is because palm oil is always competitively priced compared to the others. The relatively higher yield achieved in palm oil production makes this possible.
The truth is palm oil has many virtues which are not widely known and appreciated. This explains why palm oil has been a subject of much ridicule. Such critics mostly come from the competition. They are understandably uncomfortable with palm oil's meteoric rise in the market.
Malaysian Oil Scientist and Technologist Association (Mosta) president Tan Sri Augustine Ong strongly believes that palm oil is nature's gift to humanity. Its positive impact on the poor is enough to give that tag to palm oil. In Malaysia, the palm oil industry has uplifted many oil palm smallholders out of poverty. The Felda scheme is often quoted, even among the international community, as a successful poverty alleviation program which many countries sought to replicate. Indonesia is among the countries which have benefitted...https://www.nst.com.my/opinion/letters/2024/06/1064931/many-positives-palm-oil-untold-leading-misjudgment
---------
Green claims directive: Council ready to start talks with the European Parliament
The Council adopted its position (‘general approach’) on the green claims directive, which aims to address greenwashing and help consumers make truly greener decisions when buying a product or using a service.
Consumers need reliable, comparable and verifiable environmental claims in order to make fully informed decisions. However, a 2020 study found that more than half of the environmental claims offer vague, misleading or unfounded information.
The directive sets minimum requirements for the substantiation, communication and verification of explicit environmental claims.
Scope
This new proposal specifically targets explicit environmental claims (written or oral text) and environmental labels that companies use voluntarily when marketing their greenness and which cover the environmental impacts, aspects or performance of a product or trader. It also applies to existing and future environmental labelling schemes, both public and private ones.
The general approach draws a distinction between explicit environmental claims and environmental labels, in order to clearly specify the obligations applicable to each, including which requirements apply to both.
Clearer and evidence-based claims...https://www.consilium.europa.eu/en/press/press-releases/2024/06/17/green-claims-directive-council-ready-to-start-talks-with-the-european-parliament/
CBAM European Union: Impact and Adaptation Strategies for Indonesian Exports
Starting from October 1, 2023, the European Union has begun implementing the Carbon Border Adjustment Mechanism (CBAM). This policy is the realization of the CBAM proposal approved on June 18, 2023, following its submission to the European Parliament and the European Council since July 17, 2021.
The Carbon Border Adjustment Mechanism becomes an European Union instrument to determine the tariff for carbon issued during the production process of imported goods that enter the European Union, while goods affected by CBAM policy are indicated goods that have a high level of carbon emissions in the production process and vulnerable to carbon leakage. The implementation of CBAM will begin with the transnational period from October 1, 2023 – 2024. During this transition, imported products affected by CBAM include cement, steel, iron, aluminum, fertilizer, electricity, and hydrogen.
CBAM is part of the European Union’s efforts to reduce Greenhouse gas (GHG) in realizing an ambitious target, Net Zero Emission in 2050. CBAM, which is classified in the carbon trading mechanism in the European Union, allows carbon emissions in its area to be balanced with efforts to reduce greenhouse gas emissions elsewhere , thus achieving overall carbon emission balance. CBAM is also a form of anticipation of the European Union to the risk of the carbon leakage. Reporting from UNCTAD (2021) carbon leakage occurs when European Union companies move their production places to places with more loose emissions or conditions where imported products from countries with “loose carbon” policies replace original European Union products...https://moderndiplomacy.eu/2024/06/17/cbam-european-union-impact-and-adaptation-strategies-for-indonesian-exports/
--------
European and US used cooking oil demand increasingly unsustainable - analysis
World’s biggest UCO producer, China, soon to run out of UCO as demand from Europe and US soars.
Europe burns through 130,000 barrels of used cooking oil a day - 8 times more than it collects. The US now consumes 40,000 barrels a day.
Global airlines are set to triple demand for UCO by 2030.
Discrepancy between collection and export data for China and Malaysia shows that fraud is likely taking place.
Collecting UCO in China is nearly 30% cheaper than in Europe with the EU's anti-dumping probe ongoing.
The world’s leading used cooking oil (UCO) producer, China, will soon run out of waste oil, as demand from Europe and the US outstrips supply, a new Transport & Environment (T&E) study shows. Stratas Advisors’ research, on behalf of T&E, looks at the collection capacity of the world’s leading UCO producers and finds that China already exports more than half its UCO to be used in European and US cars and trucks. That is before airlines are set to triple demand for UCO by 2030 to meet ‘sustainable’ aviation targets[1]. T&E calls for curbs to unsustainable and dubious imports of UCO...https://www.transportenvironment.org/articles/european-and-us-used-cooking-oil-demand-increasingly-unsustainable-analysis
--------
Thai oil palm smallholders increase production and income from RSPO certification
Oil palm smallholders in Thailand have increased production volumes and their income as a result of Roundtable on Sustainable Palm Oil (RSPO) certification, the RSPO announced.
RSPO certification also helped smallholders reduce environmental, social, and economic impacts, the association said on 21 May.
In 2023, the RSPO commissioned the Prince of Songkla University in Southern Thailand to conduct research into the environmental, economic and social impacts of the Thai palm oil sector as well as looking into the impact of RSPO certification, particularly within the country’s smallholder-dominated landscape.
The oil palm sector in Thailand, the world’s third largest producer of palm oil, is predominantly sustained by smallholders, who manage more than 70% of the country’s total oil palm cultivated area.
According to the Oil Palm Development in Thailand: Trends and Progress of Sustainability Efforts in Palm Oil Production and Procurement report, palm oil production in Thailand has grown annually by 5.64% from 1.893M tonnes in 2012 to 2.960M tonnes....https://www.ofimagazine.com/news/thai-oil-palm-smallholders-increase-production-and-income-from-rspo-certification
--------
Many positives of palm oil untold, leading to misjudgment
LETTERS: A healthy diet must include enough intake of fats. A fat-poor diet can lead to health issues. Nutritionists also advocate that the percentage of energy from fats should not exceed 10 per cent. Too much is also unhealthy. The global demand for edible fats has been growing around 3 per cent yearly, driven by both population growth and the changing diet of the people.
Poor people tend to eat less fat because they cannot afford it as fat is generally more expensive. When palm oil entered the global trade in edible fats around the 80s, the situation changed. More poor people can afford to increase their fat intake. This is because palm oil is always competitively priced compared to the others. The relatively higher yield achieved in palm oil production makes this possible.
The truth is palm oil has many virtues which are not widely known and appreciated. This explains why palm oil has been a subject of much ridicule. Such critics mostly come from the competition. They are understandably uncomfortable with palm oil's meteoric rise in the market.
Malaysian Oil Scientist and Technologist Association (Mosta) president Tan Sri Augustine Ong strongly believes that palm oil is nature's gift to humanity. Its positive impact on the poor is enough to give that tag to palm oil. In Malaysia, the palm oil industry has uplifted many oil palm smallholders out of poverty. The Felda scheme is often quoted, even among the international community, as a successful poverty alleviation program which many countries sought to replicate. Indonesia is among the countries which have benefitted...https://www.nst.com.my/opinion/letters/2024/06/1064931/many-positives-palm-oil-untold-leading-misjudgment
---------
Green claims directive: Council ready to start talks with the European Parliament
The Council adopted its position (‘general approach’) on the green claims directive, which aims to address greenwashing and help consumers make truly greener decisions when buying a product or using a service.
Consumers need reliable, comparable and verifiable environmental claims in order to make fully informed decisions. However, a 2020 study found that more than half of the environmental claims offer vague, misleading or unfounded information.
The directive sets minimum requirements for the substantiation, communication and verification of explicit environmental claims.
Scope
This new proposal specifically targets explicit environmental claims (written or oral text) and environmental labels that companies use voluntarily when marketing their greenness and which cover the environmental impacts, aspects or performance of a product or trader. It also applies to existing and future environmental labelling schemes, both public and private ones.
The general approach draws a distinction between explicit environmental claims and environmental labels, in order to clearly specify the obligations applicable to each, including which requirements apply to both.
Clearer and evidence-based claims...https://www.consilium.europa.eu/en/press/press-releases/2024/06/17/green-claims-directive-council-ready-to-start-talks-with-the-european-parliament/
|
|
|
June 17, 2024
Malaysian Palm Oil Welcomed by Egypt to Establish Hub to Tap into Free Trade Agreements
KUALA LUMPUR: Malaysian palm oil leaders are welcomed to establish a hub in the Suez Canal Economic Zone to tap on the free trade agreements that Egypt has signed with its neighbours, Egyptian ambassador to Malaysia Ragai Tawfik Said Nasr said.
The Egyptian government has invited the Malaysian government and private sector to create a hub where the crude palm oil will be refined and distributed in Egypt and its neighbouring countries, he added.
Ragai Tawfik said the trade and investment between Malaysian businesses and counterparts in the Middle East, including South Africa will be facilitated by the strong network of FTAs that Egypt has signed with almost all of its neighbouring countries.
The FTAs include Greater Arab Free Trade Area (GAFTA), Egypt-Europe Union Free Trade Agreement, Common Market for Eastern and Southern Africa (Comesa) and African Continental Free Trade Area.
"This also includes the plan to serve the food industries in the SCZone that are dependent on palm oil as a manufacturing input. We had a long discussion with the Malaysian stakeholders, and we arranged site visits for a number of government officials and business leaders.
"We are hopeful that these efforts will succeed in the near future specially after the recent visit of Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani to Egypt," Ragai Tawfik told Business Times in an exclusive interview.
In his visit to Egypt, Johari highlighted that Egypt can be the North African gateway for Malaysia to offer significant opportunities for creating higher-value products from palm derivatives in sectors such as pharmaceuticals, cosmetics, processed foods, personal care and consumer brands.
According to Malaysian Palm Oil Council (MPOC), Malaysian palm oil accounted for 51.9 per cent of the Egypt's imports as of January 2024, surpassing Indonesian imports at 48.1 per cent.
Given these factors, MPOC believed Malaysian palm oil exports are positioned to maintain their robust performance throughout 2024.
On the efforts to strengthen bilateral trade and investment ties with Malaysia, Ragai Tawfik said Egypt had organised a number of successful online events that highlighted the business opportunities it offer to overcome the the lack of regular physical meetings between business people from both countries. Read more New Straits Times
--------
Malaysia's Sime Darby Guthrie Lays Out Corporate Ambitions Behind Name Change
For companies, changing their name can be both a bittersweet and complicated process.
For one as well-known and as long-tenured as Sime Darby Plantation Bhd, it can be all that, but more importantly for the plantation group now known as SD Guthrie Bhd, it would represent an opportunity to step away from the familiar and explore much more than it has in the past.
It will be on this that SD Guthrie will build on as it seeks to navigate the next phase of its growth. In order for companies to survive, the hard truth is that they need to evolve, and this is no different for SD Guthrie, whose roots can be traced back over two centuries. In a world where the global economic landscape is still not fully recovered from the Covid-19 pandemic, marred by geopolitical tension, some may question the timing.
However, according to group chief operating officer Haris Arshad, this was the perfect time for the company to make the seismic shift and come out as a new version of itself. “It can be anytime, actually, but one of the realisations we had is that we want to move beyond having a name that has a descriptive, and that descriptive in this case is plantation.” Read more The Edge Malaysia
---------
Malaysian Palm Oil Welcomed by Egypt to Establish Hub to Tap into Free Trade Agreements
KUALA LUMPUR: Malaysian palm oil leaders are welcomed to establish a hub in the Suez Canal Economic Zone to tap on the free trade agreements that Egypt has signed with its neighbours, Egyptian ambassador to Malaysia Ragai Tawfik Said Nasr said.
The Egyptian government has invited the Malaysian government and private sector to create a hub where the crude palm oil will be refined and distributed in Egypt and its neighbouring countries, he added.
Ragai Tawfik said the trade and investment between Malaysian businesses and counterparts in the Middle East, including South Africa will be facilitated by the strong network of FTAs that Egypt has signed with almost all of its neighbouring countries.
The FTAs include Greater Arab Free Trade Area (GAFTA), Egypt-Europe Union Free Trade Agreement, Common Market for Eastern and Southern Africa (Comesa) and African Continental Free Trade Area.
"This also includes the plan to serve the food industries in the SCZone that are dependent on palm oil as a manufacturing input. We had a long discussion with the Malaysian stakeholders, and we arranged site visits for a number of government officials and business leaders.
"We are hopeful that these efforts will succeed in the near future specially after the recent visit of Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani to Egypt," Ragai Tawfik told Business Times in an exclusive interview.
In his visit to Egypt, Johari highlighted that Egypt can be the North African gateway for Malaysia to offer significant opportunities for creating higher-value products from palm derivatives in sectors such as pharmaceuticals, cosmetics, processed foods, personal care and consumer brands.
According to Malaysian Palm Oil Council (MPOC), Malaysian palm oil accounted for 51.9 per cent of the Egypt's imports as of January 2024, surpassing Indonesian imports at 48.1 per cent.
Given these factors, MPOC believed Malaysian palm oil exports are positioned to maintain their robust performance throughout 2024.
On the efforts to strengthen bilateral trade and investment ties with Malaysia, Ragai Tawfik said Egypt had organised a number of successful online events that highlighted the business opportunities it offer to overcome the the lack of regular physical meetings between business people from both countries. Read more New Straits Times
--------
Malaysia's Sime Darby Guthrie Lays Out Corporate Ambitions Behind Name Change
For companies, changing their name can be both a bittersweet and complicated process.
For one as well-known and as long-tenured as Sime Darby Plantation Bhd, it can be all that, but more importantly for the plantation group now known as SD Guthrie Bhd, it would represent an opportunity to step away from the familiar and explore much more than it has in the past.
It will be on this that SD Guthrie will build on as it seeks to navigate the next phase of its growth. In order for companies to survive, the hard truth is that they need to evolve, and this is no different for SD Guthrie, whose roots can be traced back over two centuries. In a world where the global economic landscape is still not fully recovered from the Covid-19 pandemic, marred by geopolitical tension, some may question the timing.
However, according to group chief operating officer Haris Arshad, this was the perfect time for the company to make the seismic shift and come out as a new version of itself. “It can be anytime, actually, but one of the realisations we had is that we want to move beyond having a name that has a descriptive, and that descriptive in this case is plantation.” Read more The Edge Malaysia
---------
|
|
|
June 15, 2024
European Union Invites Trade War, Who's Afraid?
InfoSAWIT, JAKARTA – The European Union officially beats the drums of an open trade war on Indonesia and Malaysia through the EUDR (European Union Deforestation Regulation) policy which was announced on December 6 2022. This policy provides a grace period until early 2025, requiring operators and traders who deal in goods and derivatives from seven commodities – livestock, cocoa, coffee, palm oil, rubber, soybeans and wood – to conduct extensive due diligence throughout the supply chain.
The main goal of this deforestation-free policy is to protect forests and prevent deforestation throughout the world. Similar policies are also implemented by several countries and regions, such as the UK and the United States.
However, specifically for palm oil, the European Union has long carried out a black campaign. In the 1990s, they accused palm oil of being a water-wasting and unhealthy commodity. In 2004, they created the RSPO (Roundtable on Sustainable Palm Oil) as an effort to inhibit palm oil exports to Europe for environmental reasons. Now, with EUDR, they are openly launching obstacles to pressure Indonesia and Malaysia.
Looking at its history, Europe's attitude which is considered to always feel the most correct and strong is not surprising. European nations such as the British, Dutch, French and Portuguese were known as colonizers who needed raw materials from their colonial countries.
Europe and America often consider Indonesia inferior, a view that must be challenged. European countries are actually poor in natural resources and look for raw materials in Africa, Asia, even Australia and America. They thought that Indonesia and Malaysia could just be suppressed. However, this barrier in the form of regulations from Europe is actually fragile and can be broken easily. Read more Info Sawit
--------
Biofuel policies will alter grain price structure
Boom likely to spill into lower meal prices, animal nutrition conference hears
Food and feed are the main sources of global demand for crops but climate-related policies could tip that apple cart.
Governments are making legislative overtures to boost production of biofuels. In Canada, that includes the Canadian Clean Fuels Regulation, which lays out rules for fuel production and aims to encourage development of cleaner fuels and limit greenhouse gas emissions.
Governments around the world are enacting similar mandates and the livestock feed sector expects spillover impacts from those shifts.
According to Aaron Hanson, a senior economist with GlobalData’s agriculture division (formerly LMC International), 2010 global production of biofuels was 20 million tonnes a year. That’s expected to explode with the advent of new fuel mandates.
“If those mandates are met, we have something like 110 million tonnes of biofuels that we’re looking at supplying,” he told the Animal Nutrition Conference of Canada in Winnipeg May 15.
“In the 2000s, when the first biofuels wave began, there was an extra element of stress placed on vegetable oil demand,” he said, and palm oil stepped in to fill the market niche.
“Palm is far and away the best and most efficient source in terms of area in use for providing vegetable oils,” said Hanson.
Soybeans are at the opposite end of the spectrum because more of the seed is meal.
Pressure on oils has played out in crop production across North America. Read more Alberta Farm Express
--------
How commodity exchanges influence food prices, and why farmers don’t always benefit from price hikes
14-Jun-2024 By Augustus Bambridge-Sutton
Commodity exchanges influence prices of key foods and ingredients on all levels of the supply chain. But how close is the link between the commodity exchange, and the commodity itself? Read more at Food Navigator
--------
Sawit Kinabalu to become Malaysia's first large producer of tocotrienols from palm oil waste.
KOTA KINABALU: Sabah-owned Sawit Kinabalu is set to be Malaysia's first large-scale producer of tocotrienol from palm oil waste.
Production is expected to begin in the first quarter of 2025, employing proprietary technology to extract tocotrienols from refined byproducts.
Tocotrienols are a form of vitamin E used for a variety of health and therapeutic purposes due to their potent antioxidant properties.
This comes after Sawit Kinabalu signed a Memorandum of Understanding (MoU) through Kunak Lipids with Shanghai-based Boce Trade Service Company Ltd, to produce palm oil refinery by-products to meet Chinese market demand.
At the signing, Kunak Lipids Sdn Bhd was represented by its group managing director and chief executive officer Victor Ationg and Boce Trade Service Company Ltd by its general manager, Qiu Rong Yu.
The ceremony was witnessed by Deputy Plantations and Commodities Minister Datuk Chan Foong Hin at Shangri-la Pudong Shanghai on Thursday (June 13).
Also present were Kunak Lipids director and deputy chief executive officer Datin Stella Ambrose and BOCE Trade Service Company Ltd managing director Goh Teck Bin. Read more The StarMY
---------
Newswire: INDIGENOUS LEADERS SUPPORT PALM OIL COMPANY OCHO SUR DURING THE FIFTH AMAZON CONGRESS 2024
They rejected the demonization of oil palm by certain group of interests and expressed that these crops offer today a better quality of life for their people
The cultivation of oil palm have allowed my 5 grandchildren to go to College to the best university of Ucayali.”— Amelia Pacaya - Indigenous LeaderTARAPOTO
SAN MARTIN, PERU, June 14, 2024 /EINPresswire.com/ -- Ocho Sur, a business group engaged in the sustainable production of oil palm products and derivatives in Ucayali, arrived in Pucallpa 7 years ago, in 2016, with the idea of building a different business based on three pillars of benefits: economic, social and environmental, “three important and necessary axes for sustainability.”
This was shared by Michael Spoor, executive director of the palm oil group, during his presentation on “Sustainable and Inclusive Business Models in the Amazon”, at the recent V Congress of Amazonian Entrepreneurs 2024, held in Tarapoto on June 5-6.
“To date we have invested 160 million dollars, which represents the largest foreign agro-industrial investment in the Peruvian Amazon, with which we have managed to achieve the objective and success of a transformative business, always supported by these three pillars of sustainability”, said the senior Ocho Sur officer, also highlighting that it is the largest formal employer in the region with up to 2,000 jobs.
Likewise, he specified that “Within the framework of our social responsibility policy, we support the sustainable development of 24 neighboring communities, benefiting more than 10,000 residents and we work with them, hand in hand, on essential infrastructure projects, education, health, maintaining 200 kilometers of roads and, now, we are connecting them with the world through the internet,” he said. EINNEWS
European Union Invites Trade War, Who's Afraid?
InfoSAWIT, JAKARTA – The European Union officially beats the drums of an open trade war on Indonesia and Malaysia through the EUDR (European Union Deforestation Regulation) policy which was announced on December 6 2022. This policy provides a grace period until early 2025, requiring operators and traders who deal in goods and derivatives from seven commodities – livestock, cocoa, coffee, palm oil, rubber, soybeans and wood – to conduct extensive due diligence throughout the supply chain.
The main goal of this deforestation-free policy is to protect forests and prevent deforestation throughout the world. Similar policies are also implemented by several countries and regions, such as the UK and the United States.
However, specifically for palm oil, the European Union has long carried out a black campaign. In the 1990s, they accused palm oil of being a water-wasting and unhealthy commodity. In 2004, they created the RSPO (Roundtable on Sustainable Palm Oil) as an effort to inhibit palm oil exports to Europe for environmental reasons. Now, with EUDR, they are openly launching obstacles to pressure Indonesia and Malaysia.
Looking at its history, Europe's attitude which is considered to always feel the most correct and strong is not surprising. European nations such as the British, Dutch, French and Portuguese were known as colonizers who needed raw materials from their colonial countries.
Europe and America often consider Indonesia inferior, a view that must be challenged. European countries are actually poor in natural resources and look for raw materials in Africa, Asia, even Australia and America. They thought that Indonesia and Malaysia could just be suppressed. However, this barrier in the form of regulations from Europe is actually fragile and can be broken easily. Read more Info Sawit
--------
Biofuel policies will alter grain price structure
Boom likely to spill into lower meal prices, animal nutrition conference hears
Food and feed are the main sources of global demand for crops but climate-related policies could tip that apple cart.
Governments are making legislative overtures to boost production of biofuels. In Canada, that includes the Canadian Clean Fuels Regulation, which lays out rules for fuel production and aims to encourage development of cleaner fuels and limit greenhouse gas emissions.
Governments around the world are enacting similar mandates and the livestock feed sector expects spillover impacts from those shifts.
According to Aaron Hanson, a senior economist with GlobalData’s agriculture division (formerly LMC International), 2010 global production of biofuels was 20 million tonnes a year. That’s expected to explode with the advent of new fuel mandates.
“If those mandates are met, we have something like 110 million tonnes of biofuels that we’re looking at supplying,” he told the Animal Nutrition Conference of Canada in Winnipeg May 15.
“In the 2000s, when the first biofuels wave began, there was an extra element of stress placed on vegetable oil demand,” he said, and palm oil stepped in to fill the market niche.
“Palm is far and away the best and most efficient source in terms of area in use for providing vegetable oils,” said Hanson.
Soybeans are at the opposite end of the spectrum because more of the seed is meal.
Pressure on oils has played out in crop production across North America. Read more Alberta Farm Express
--------
How commodity exchanges influence food prices, and why farmers don’t always benefit from price hikes
14-Jun-2024 By Augustus Bambridge-Sutton
Commodity exchanges influence prices of key foods and ingredients on all levels of the supply chain. But how close is the link between the commodity exchange, and the commodity itself? Read more at Food Navigator
--------
Sawit Kinabalu to become Malaysia's first large producer of tocotrienols from palm oil waste.
KOTA KINABALU: Sabah-owned Sawit Kinabalu is set to be Malaysia's first large-scale producer of tocotrienol from palm oil waste.
Production is expected to begin in the first quarter of 2025, employing proprietary technology to extract tocotrienols from refined byproducts.
Tocotrienols are a form of vitamin E used for a variety of health and therapeutic purposes due to their potent antioxidant properties.
This comes after Sawit Kinabalu signed a Memorandum of Understanding (MoU) through Kunak Lipids with Shanghai-based Boce Trade Service Company Ltd, to produce palm oil refinery by-products to meet Chinese market demand.
At the signing, Kunak Lipids Sdn Bhd was represented by its group managing director and chief executive officer Victor Ationg and Boce Trade Service Company Ltd by its general manager, Qiu Rong Yu.
The ceremony was witnessed by Deputy Plantations and Commodities Minister Datuk Chan Foong Hin at Shangri-la Pudong Shanghai on Thursday (June 13).
Also present were Kunak Lipids director and deputy chief executive officer Datin Stella Ambrose and BOCE Trade Service Company Ltd managing director Goh Teck Bin. Read more The StarMY
---------
Newswire: INDIGENOUS LEADERS SUPPORT PALM OIL COMPANY OCHO SUR DURING THE FIFTH AMAZON CONGRESS 2024
They rejected the demonization of oil palm by certain group of interests and expressed that these crops offer today a better quality of life for their people
The cultivation of oil palm have allowed my 5 grandchildren to go to College to the best university of Ucayali.”— Amelia Pacaya - Indigenous LeaderTARAPOTO
SAN MARTIN, PERU, June 14, 2024 /EINPresswire.com/ -- Ocho Sur, a business group engaged in the sustainable production of oil palm products and derivatives in Ucayali, arrived in Pucallpa 7 years ago, in 2016, with the idea of building a different business based on three pillars of benefits: economic, social and environmental, “three important and necessary axes for sustainability.”
This was shared by Michael Spoor, executive director of the palm oil group, during his presentation on “Sustainable and Inclusive Business Models in the Amazon”, at the recent V Congress of Amazonian Entrepreneurs 2024, held in Tarapoto on June 5-6.
“To date we have invested 160 million dollars, which represents the largest foreign agro-industrial investment in the Peruvian Amazon, with which we have managed to achieve the objective and success of a transformative business, always supported by these three pillars of sustainability”, said the senior Ocho Sur officer, also highlighting that it is the largest formal employer in the region with up to 2,000 jobs.
Likewise, he specified that “Within the framework of our social responsibility policy, we support the sustainable development of 24 neighboring communities, benefiting more than 10,000 residents and we work with them, hand in hand, on essential infrastructure projects, education, health, maintaining 200 kilometers of roads and, now, we are connecting them with the world through the internet,” he said. EINNEWS
|
|
|
June 14, 2024
India’s May Palm oil imports jump 74 pc on rising demand
New Delhi, Jun 13 (PTI) India’s palm oil imports surged 74 per cent to 7,63,300 tonnes in May this year from 4,39,173 tonnes in the year-ago period, as the world’s largest vegetable oil buyer stocked up the commodity to meet rising domestic demand, industry body Solvent Extractors Association (SEA) said on Thursday.
The total vegetable oil imports rose to 15.29 lakh tonnes in May this year from 10.58 lakh tonnes in May 2023, it added.
Palm oil constitutes a major part of imports.
Crude palm oil (CPO) imports rose to 5,32,555 tonnes in May this year from 3,48,118 tonnes in the year-ago period, while RBD Palmolein imports surged to 2,25,746 tonnes from 85,205 tonnes. However, Crude Palm Kernel Oil (CPKO) imports fell to 4,999 tonnes from 5,850 tonnes a year earlier.
Sunflower oil imports climbed to 4,10,727 tonnes from 2,95,206 tonnes, and soybean oil rose to 3,24,016 tonnes from 3,18,887 tonnes.
For the first seven months of the 2023-24 marketing year started on November 1, Palm oil imports fell to 49.77 lakh tonnes from 53.48 lakh tonnes in the year-ago period, while soybean oil imports were down at 85.67 lakh tonnes against 90.55 lakh tonnes in the said period.
As of June 1, India’s edible oil stocks stood at 6,68,000 tonnes.
Global edible oil prices surged last month due to supply disruptions in major exporters like Argentina, Brazil, Russia, and Ukraine, SEA said.
Rising soybean and sunflower oil prices boosted domestic mustard prices above the government’s support level of Rs 5,650 per quintal, incentivising farmers to expand the oilseed area in the upcoming kharif season, it added.
Indonesia and Malaysia are the major suppliers of refined palmolein and CPO to India, which mainly imports soy oil from Argentina and Brazil, and sunoil from Russia, Romania, Ukraine and Argentina. Take1DigitalNetwork
--------
India mulls reducing coal imports
NEW DELHI- India wants to reduce coal imports and increase domestic production, federal coal minister G. Kishan Reddy said on Thursday.
The country, the world’s second-largest consumer of coal, imported 176 million tons of thermal coal in 2023, Reuters reported earlier in the year.
Imports are expected to not go beyond 160 million tons in 2024, Rajat Handa, vice president of international trade at a coal importing firm Agarwal Coal, told Reuters in February.
Reddy did not provide further details.
India has increasingly relied on coal to address power demand as it expects power generation to grow the fastest since at least 2011/12.
It has long defended the use of coal, but Prime Minister Narendra Modi’s administration has slowed the heavily polluting fuel-based capacity growth to focus on India’s green energy transition in a bid to meet its 2070 net zero emission goals. Malaya
--------
Neste supplies SAF to Emirates at Changi airport
Dubai-owned airline Emirates has started using blended sustainable aviation fuel (SAF) supplied by Finnish biofuels producer Neste on flights departing from Changi airport from Neste's Singapore refinery.
The two companies had signed a partnership in October 2023 for 3mn USG (8,600t) of blended SAF in 2024 and 2025, with Neste supplying over 6,000t of blended SAF to Emirates at Amsterdam's Schiphol airport this year.
Neste has since supplied more than 2,600t of blended SAF into Changi's fuelling system over the past few weeks, with Emirates' deputy president and chief operating officer Adel Al Redha indicating a move towards "longer term agreements to help scale up a steady supply of SAF for operations".
Emirates said it is the first international visiting airline using SAF supplied at Changi from Neste's Singapore refinery.
By Deborah Sun Argus Media
--------
TH Plantations forms partnership with UEM unit to develop biogas power plant in Johor
KUALA LUMPUR (June 13): TH Plantations Bhd (KL:THPLANT) said it is teaming up with UEM Lestra Bhd, a wholly owned unit of UEM Group, to develop a 1.2 megawatt (MW) biogas power plant in Kluang, Johor.
In a statement on Thursday, TH Plantations said the project will be carried out through a joint venture between its wholly owned unit THP Applications & Services Sdn Bhd, and UEM Lestra's subsidiary Cenergi RE Sdn Bhd.
TH Plantations, the plantation arm of Lembaga Tabung Haji, said the plant — which is set to begin operations in 2026 — will generate enough electricity to power up to 1,500 homes annually. The plant is also expected to prevent 20,000 tonnes of carbon emissions each year, which is equivalent to 4,760 cars driven in a year.
TH Plantations chief executive officer Mohamed Zainurin Mohamed Zain said the project aligns with the company’s Al-Falah 22/22 strategies, aimed at optimising the treatment of palm oil mill effluent and reducing greenhouse gas emissions.
"Renewable energy is poised to play an increasingly significant role in Malaysia's electricity generation, given the abundance of biomass and biogas resources. TH Plantations is committed to exploring opportunities to become a reliable supplier of bio-stock for the renewable energy industry.
"At TH Plantations, we are always looking for ways to enhance Tabung Haji's investment value while prioritising environmental sustainability,” he added. The Edge Malaysia
--------
Malaysia backs $1.5 billion in aid for state palm oil firm Felda
KUALA LUMPUR (Reuters) - Malaysia will inject 6.23 billion ringgit ($1.52 billion) of financial aid into state-owned palm oil plantation agency Felda, after a government inquiry found poor management had sent the company's losses and debt soaring over the past decade.
Tabling a report in parliament on Wednesday, Economic Affairs Minister Azmin Ali cited mismanagement and bad investments for Felda's troubles, and accused former prime minister Najib Razak of using the agency for political purposes.
Azmin said Felda will also exercise an option to walk back a $500 million purchase of a stake in Indonesian palm oil firm PT Eagle High Plantations, a deal made during Najib's premiership that was criticised as being too expensive.
The report follows a probe ordered by the government of Mahathir Mohamad, which came to power last year after defeating Malaysia's longtime ruling coalition and which had vowed to look into Felda's financial troubles and alleged graft.
"This is not just negligence, this is a crime that led to the loss of billions of public funds," Azmin said of the report's findings.
The report said Felda's total liabilities had risen 12-fold over 10 years to 14.4 billion ringgit in 2017. Its cash balance plunged from an average of 2.5 billion ringgit in the period between 2007 to 2011, to just 35 million ringgit as of May 2018.
"This cash flow restriction means that Felda has been unable to cover operating costs, replanting costs, or provide assistance and loans to settlers," Azmin said. Reuters/ Yahoo
--------
India’s May Palm oil imports jump 74 pc on rising demand
New Delhi, Jun 13 (PTI) India’s palm oil imports surged 74 per cent to 7,63,300 tonnes in May this year from 4,39,173 tonnes in the year-ago period, as the world’s largest vegetable oil buyer stocked up the commodity to meet rising domestic demand, industry body Solvent Extractors Association (SEA) said on Thursday.
The total vegetable oil imports rose to 15.29 lakh tonnes in May this year from 10.58 lakh tonnes in May 2023, it added.
Palm oil constitutes a major part of imports.
Crude palm oil (CPO) imports rose to 5,32,555 tonnes in May this year from 3,48,118 tonnes in the year-ago period, while RBD Palmolein imports surged to 2,25,746 tonnes from 85,205 tonnes. However, Crude Palm Kernel Oil (CPKO) imports fell to 4,999 tonnes from 5,850 tonnes a year earlier.
Sunflower oil imports climbed to 4,10,727 tonnes from 2,95,206 tonnes, and soybean oil rose to 3,24,016 tonnes from 3,18,887 tonnes.
For the first seven months of the 2023-24 marketing year started on November 1, Palm oil imports fell to 49.77 lakh tonnes from 53.48 lakh tonnes in the year-ago period, while soybean oil imports were down at 85.67 lakh tonnes against 90.55 lakh tonnes in the said period.
As of June 1, India’s edible oil stocks stood at 6,68,000 tonnes.
Global edible oil prices surged last month due to supply disruptions in major exporters like Argentina, Brazil, Russia, and Ukraine, SEA said.
Rising soybean and sunflower oil prices boosted domestic mustard prices above the government’s support level of Rs 5,650 per quintal, incentivising farmers to expand the oilseed area in the upcoming kharif season, it added.
Indonesia and Malaysia are the major suppliers of refined palmolein and CPO to India, which mainly imports soy oil from Argentina and Brazil, and sunoil from Russia, Romania, Ukraine and Argentina. Take1DigitalNetwork
--------
India mulls reducing coal imports
NEW DELHI- India wants to reduce coal imports and increase domestic production, federal coal minister G. Kishan Reddy said on Thursday.
The country, the world’s second-largest consumer of coal, imported 176 million tons of thermal coal in 2023, Reuters reported earlier in the year.
Imports are expected to not go beyond 160 million tons in 2024, Rajat Handa, vice president of international trade at a coal importing firm Agarwal Coal, told Reuters in February.
Reddy did not provide further details.
India has increasingly relied on coal to address power demand as it expects power generation to grow the fastest since at least 2011/12.
It has long defended the use of coal, but Prime Minister Narendra Modi’s administration has slowed the heavily polluting fuel-based capacity growth to focus on India’s green energy transition in a bid to meet its 2070 net zero emission goals. Malaya
--------
Neste supplies SAF to Emirates at Changi airport
Dubai-owned airline Emirates has started using blended sustainable aviation fuel (SAF) supplied by Finnish biofuels producer Neste on flights departing from Changi airport from Neste's Singapore refinery.
The two companies had signed a partnership in October 2023 for 3mn USG (8,600t) of blended SAF in 2024 and 2025, with Neste supplying over 6,000t of blended SAF to Emirates at Amsterdam's Schiphol airport this year.
Neste has since supplied more than 2,600t of blended SAF into Changi's fuelling system over the past few weeks, with Emirates' deputy president and chief operating officer Adel Al Redha indicating a move towards "longer term agreements to help scale up a steady supply of SAF for operations".
Emirates said it is the first international visiting airline using SAF supplied at Changi from Neste's Singapore refinery.
By Deborah Sun Argus Media
--------
TH Plantations forms partnership with UEM unit to develop biogas power plant in Johor
KUALA LUMPUR (June 13): TH Plantations Bhd (KL:THPLANT) said it is teaming up with UEM Lestra Bhd, a wholly owned unit of UEM Group, to develop a 1.2 megawatt (MW) biogas power plant in Kluang, Johor.
In a statement on Thursday, TH Plantations said the project will be carried out through a joint venture between its wholly owned unit THP Applications & Services Sdn Bhd, and UEM Lestra's subsidiary Cenergi RE Sdn Bhd.
TH Plantations, the plantation arm of Lembaga Tabung Haji, said the plant — which is set to begin operations in 2026 — will generate enough electricity to power up to 1,500 homes annually. The plant is also expected to prevent 20,000 tonnes of carbon emissions each year, which is equivalent to 4,760 cars driven in a year.
TH Plantations chief executive officer Mohamed Zainurin Mohamed Zain said the project aligns with the company’s Al-Falah 22/22 strategies, aimed at optimising the treatment of palm oil mill effluent and reducing greenhouse gas emissions.
"Renewable energy is poised to play an increasingly significant role in Malaysia's electricity generation, given the abundance of biomass and biogas resources. TH Plantations is committed to exploring opportunities to become a reliable supplier of bio-stock for the renewable energy industry.
"At TH Plantations, we are always looking for ways to enhance Tabung Haji's investment value while prioritising environmental sustainability,” he added. The Edge Malaysia
--------
Malaysia backs $1.5 billion in aid for state palm oil firm Felda
KUALA LUMPUR (Reuters) - Malaysia will inject 6.23 billion ringgit ($1.52 billion) of financial aid into state-owned palm oil plantation agency Felda, after a government inquiry found poor management had sent the company's losses and debt soaring over the past decade.
Tabling a report in parliament on Wednesday, Economic Affairs Minister Azmin Ali cited mismanagement and bad investments for Felda's troubles, and accused former prime minister Najib Razak of using the agency for political purposes.
Azmin said Felda will also exercise an option to walk back a $500 million purchase of a stake in Indonesian palm oil firm PT Eagle High Plantations, a deal made during Najib's premiership that was criticised as being too expensive.
The report follows a probe ordered by the government of Mahathir Mohamad, which came to power last year after defeating Malaysia's longtime ruling coalition and which had vowed to look into Felda's financial troubles and alleged graft.
"This is not just negligence, this is a crime that led to the loss of billions of public funds," Azmin said of the report's findings.
The report said Felda's total liabilities had risen 12-fold over 10 years to 14.4 billion ringgit in 2017. Its cash balance plunged from an average of 2.5 billion ringgit in the period between 2007 to 2011, to just 35 million ringgit as of May 2018.
"This cash flow restriction means that Felda has been unable to cover operating costs, replanting costs, or provide assistance and loans to settlers," Azmin said. Reuters/ Yahoo
--------
|
|
|
June 13, 2024
ADVANCING JOHOR’S PALM OIL INDUSTRY THROUGH SUSTAINABILITY AND TECHNOLOGY
In 2023, Johor Plantations Group Berhad (JPG), formerly known as Johor Plantations Berhad, emerged as a “new” name within Malaysia’s palm oil industry.
Through the years, JPG has evolved from modest beginnings to become a formidable force in the palm oil industry.
JPG was incorporated in 1978 as a private limited company and a subsidiary of Kulim (Malaysia) Berhad (Kulim), which is wholly owned by Johor Corporation (JCorp).
Over the years, Kulim’s focus shifted towards oil palm plantations and later, agribusiness.
In 2023, Johor Plantations Group Berhad (JPG), formerly known as Johor Plantations Berhad, emerged as a “new” name within Malaysia’s palm oil industry.
Through the years, JPG has evolved from modest beginnings to become a formidable force in the palm oil industry.
JPG was incorporated in 1978 as a private limited company and a subsidiary of Kulim (Malaysia) Berhad (Kulim), which is wholly owned by Johor Corporation (JCorp).
Over the years, Kulim’s focus shifted towards oil palm plantations and later, agribusiness. Read more The StarMY
--------
Johor Plantations launches $156 mln IPO, Malaysia's largest in 2 years
SINGAPORE, June 12 (Reuters) - Malaysian palm oil company Johor Plantations Group launched on Wednesday its initial public offering that will raise 735 million ringgit ($155.89 million) in what would be the country's biggest IPO in more than two years.
The last big IPO in Malaysia was in March 2022, when dairy producer Farm Fresh raised 1 billion ringgit.
Johor Plantations offered an up to 35% stake, or as much as 875 million shares, in the listing and set an IPO retail price of 84 sen per share, giving it a market capitalisation of 2.1 billion ringgit, according to its IPO prospectus released on Wednesday.
Of the 735 million ringgit raised, about 345.2 million ringgit would go to sole selling shareholder Kulim, a unit of Johor state government agency Johor Corp, the prospectus said. Read more Marketscreener/ Reuters
--------
EU, UN agencies launch program to tackle child labor in Sabah
Initiative hopes to provide better access to education, training for child workers on palm oil plantations in the Malaysian state.
The European Union and two United Nations agencies launched an initiative Wednesday to end child labor at palm oil plantations in the eastern Malaysian state of Sabah.
Nearly 20,000 children work in the palm oil industry in Sabah, one of two Malaysian states on Borneo island, according to a 2018 government survey of plantation workers. Nationwide at least 33,600 children aged between 5 and 17 years old were employed that year on palm oil plantations.
The new initiative seeks to provide thousands of child workers better access to education and training opportunities, particularly in Sabah’s Tawau district, officials from the EU bloc, the International Labour Organization (ILO) and UNICEF said.
“Eradicating child labor is a top priority for the EU, and working proactively to prevent it is all the more urgent right now. We know that strong, local partnerships are essential to understand, address, and prevent child labor,” said Dr. Audrey-Anne Rochelemagne, Cooperation Team Leader of the Delegation of the EU.
“This is why we have joined forces with ILO, UNICEF, and local actors to implement this program,” she also said in a statement issued by the International Labour Organization. The program’s launch coincided with this year’s World Day Against Child Labour. Read more Benar News
--------
Prabowo must move with care in pursuit of biofuel leadership
Incoming Indonesian president aims to leverage nation's top position in palm oil
Ahmad Munawir Siregar is a member of the research staff of the Purnomo Yusgiantoro Center, a Jakarta-based think tank focused on energy, natural resources and defense. Akhmad Hanan is a researcher at the center.
The incoming Indonesian presidential administration of Prabowo Subianto and Gibran Rakabuming has embraced a vision focused on social and ecological justice, renewable energy adoption, green economy development and robust responses to climate change.
The pair want to position Indonesia as a global leader in green energy. This strategy is centered on making the country the leading global producer of biofuels by leveraging its massive palm oil industry. The drive is in line with Indonesia's pledge to obtain 23% of its energy from renewable sources by 2025, working toward the ambitious target of achieving net-zero emissions by 2060.
The palm oil sector holds immense potential for boosting the Indonesian economy. In 2023, when output reached 50.07 million metric tons, the industry contributed 240 trillion rupiah ($14.7 billion) to national gross domestic product and provided employment to approximately 16 million people.
While Indonesia is already the world's largest palm oil producer, Prabowo has signaled his intent to use 11 million hectares of industrial forest land for oil palm cultivation to further boost output and increase the ratio of palm oil in the blended diesel mandated for use in the country. Yet the increase would be less substantial than might first appear as a large portion of the land is already use for oil palm while the balance is used for other crops like cassava.
In any case, Prabowo's bold ambitions for Indonesian biofuels must be tempered with caution given the severe risks the plan could pose to the environment.
Despite attempts to address environmental issues, Indonesia lost 9.95 million hectares of primary forest, equal to 11% of the national total, between 2002 and 2021, mainly due to increased production of palm oil. This deforestation has caused severe ecological impacts, including ecosystem destruction, biodiversity loss and increased carbon emissions. Read more Asia Nikkei
--------
Indonesia says its committed to protecting forests in Papua
Indonesia's Environment and Forestry (LHK) Minister Siti Nurbaya Bakar has affirmed that the government and traditional communities share the same view about the need to protect customary forest lands in Papua.
"Traditional communities are pushing for the protection of forests from deforestation. In this regard, the government is on the same page with them, since we are against the conversion of primary forests into palm oil plantations," she said in Jakarta on Wednesday.
She made the statement in response to a viral digital poster with the tagline "All Eyes on Papua," which claims that 36 thousand hectares of forest land in Boven Digoel, South Papua, will be converted into a palm oil plantation.
On May 27, 2024, representatives of the South Papuan Awyu Tribe and West Papuan Moi tribes held a demonstration in front of the Supreme Court (MA), Jakarta, to oppose the land conversion, arguing that the lands are customary and serve as their source of life.
Bakar said that the government has revoked the forest land utilization permits of two companies, namely PT MJR and PT KCP.
The permits, which allowed the companies to convert the use of 38 thousand hectares of forest land in Boven Digoel, were granted during the 2010–2012 period. Read more Antara News
--------
Louis Dreyfus to expand Indonesia palm oil refining business, executive says
SINGAPORE : Agricultural commodity merchant Louis Dreyfus Company (LDC) is expanding its palm oil refining business in Indonesia, which will include construction of a new glycerine plant and higher production of biodiesel, a senior company official said.
LDC, which processes agricultural goods, has been expanding its operations in Asia to tap into the growing demand for food products.
"LDC is investing significantly to expand its refining complex in Lampung with the addition of a new glycerine refining plant, edible oil packing plant and warehouse," Rubens Marques, LDC's chief executive for South and Southeast Asia, told Reuters this week.
"These developments support our strategy to diversify revenue through value-added products by driving operational efficiency and synergies at the site."
The glycerine refining plant in Lampung will have an annual production capacity of 55,000 metric tons, primarily serving manufacturers of food, pharmaceutical and personal care products. Read more Channel News Asia
ADVANCING JOHOR’S PALM OIL INDUSTRY THROUGH SUSTAINABILITY AND TECHNOLOGY
In 2023, Johor Plantations Group Berhad (JPG), formerly known as Johor Plantations Berhad, emerged as a “new” name within Malaysia’s palm oil industry.
Through the years, JPG has evolved from modest beginnings to become a formidable force in the palm oil industry.
JPG was incorporated in 1978 as a private limited company and a subsidiary of Kulim (Malaysia) Berhad (Kulim), which is wholly owned by Johor Corporation (JCorp).
Over the years, Kulim’s focus shifted towards oil palm plantations and later, agribusiness.
In 2023, Johor Plantations Group Berhad (JPG), formerly known as Johor Plantations Berhad, emerged as a “new” name within Malaysia’s palm oil industry.
Through the years, JPG has evolved from modest beginnings to become a formidable force in the palm oil industry.
JPG was incorporated in 1978 as a private limited company and a subsidiary of Kulim (Malaysia) Berhad (Kulim), which is wholly owned by Johor Corporation (JCorp).
Over the years, Kulim’s focus shifted towards oil palm plantations and later, agribusiness. Read more The StarMY
--------
Johor Plantations launches $156 mln IPO, Malaysia's largest in 2 years
SINGAPORE, June 12 (Reuters) - Malaysian palm oil company Johor Plantations Group launched on Wednesday its initial public offering that will raise 735 million ringgit ($155.89 million) in what would be the country's biggest IPO in more than two years.
The last big IPO in Malaysia was in March 2022, when dairy producer Farm Fresh raised 1 billion ringgit.
Johor Plantations offered an up to 35% stake, or as much as 875 million shares, in the listing and set an IPO retail price of 84 sen per share, giving it a market capitalisation of 2.1 billion ringgit, according to its IPO prospectus released on Wednesday.
Of the 735 million ringgit raised, about 345.2 million ringgit would go to sole selling shareholder Kulim, a unit of Johor state government agency Johor Corp, the prospectus said. Read more Marketscreener/ Reuters
--------
EU, UN agencies launch program to tackle child labor in Sabah
Initiative hopes to provide better access to education, training for child workers on palm oil plantations in the Malaysian state.
The European Union and two United Nations agencies launched an initiative Wednesday to end child labor at palm oil plantations in the eastern Malaysian state of Sabah.
Nearly 20,000 children work in the palm oil industry in Sabah, one of two Malaysian states on Borneo island, according to a 2018 government survey of plantation workers. Nationwide at least 33,600 children aged between 5 and 17 years old were employed that year on palm oil plantations.
The new initiative seeks to provide thousands of child workers better access to education and training opportunities, particularly in Sabah’s Tawau district, officials from the EU bloc, the International Labour Organization (ILO) and UNICEF said.
“Eradicating child labor is a top priority for the EU, and working proactively to prevent it is all the more urgent right now. We know that strong, local partnerships are essential to understand, address, and prevent child labor,” said Dr. Audrey-Anne Rochelemagne, Cooperation Team Leader of the Delegation of the EU.
“This is why we have joined forces with ILO, UNICEF, and local actors to implement this program,” she also said in a statement issued by the International Labour Organization. The program’s launch coincided with this year’s World Day Against Child Labour. Read more Benar News
--------
Prabowo must move with care in pursuit of biofuel leadership
Incoming Indonesian president aims to leverage nation's top position in palm oil
Ahmad Munawir Siregar is a member of the research staff of the Purnomo Yusgiantoro Center, a Jakarta-based think tank focused on energy, natural resources and defense. Akhmad Hanan is a researcher at the center.
The incoming Indonesian presidential administration of Prabowo Subianto and Gibran Rakabuming has embraced a vision focused on social and ecological justice, renewable energy adoption, green economy development and robust responses to climate change.
The pair want to position Indonesia as a global leader in green energy. This strategy is centered on making the country the leading global producer of biofuels by leveraging its massive palm oil industry. The drive is in line with Indonesia's pledge to obtain 23% of its energy from renewable sources by 2025, working toward the ambitious target of achieving net-zero emissions by 2060.
The palm oil sector holds immense potential for boosting the Indonesian economy. In 2023, when output reached 50.07 million metric tons, the industry contributed 240 trillion rupiah ($14.7 billion) to national gross domestic product and provided employment to approximately 16 million people.
While Indonesia is already the world's largest palm oil producer, Prabowo has signaled his intent to use 11 million hectares of industrial forest land for oil palm cultivation to further boost output and increase the ratio of palm oil in the blended diesel mandated for use in the country. Yet the increase would be less substantial than might first appear as a large portion of the land is already use for oil palm while the balance is used for other crops like cassava.
In any case, Prabowo's bold ambitions for Indonesian biofuels must be tempered with caution given the severe risks the plan could pose to the environment.
Despite attempts to address environmental issues, Indonesia lost 9.95 million hectares of primary forest, equal to 11% of the national total, between 2002 and 2021, mainly due to increased production of palm oil. This deforestation has caused severe ecological impacts, including ecosystem destruction, biodiversity loss and increased carbon emissions. Read more Asia Nikkei
--------
Indonesia says its committed to protecting forests in Papua
Indonesia's Environment and Forestry (LHK) Minister Siti Nurbaya Bakar has affirmed that the government and traditional communities share the same view about the need to protect customary forest lands in Papua.
"Traditional communities are pushing for the protection of forests from deforestation. In this regard, the government is on the same page with them, since we are against the conversion of primary forests into palm oil plantations," she said in Jakarta on Wednesday.
She made the statement in response to a viral digital poster with the tagline "All Eyes on Papua," which claims that 36 thousand hectares of forest land in Boven Digoel, South Papua, will be converted into a palm oil plantation.
On May 27, 2024, representatives of the South Papuan Awyu Tribe and West Papuan Moi tribes held a demonstration in front of the Supreme Court (MA), Jakarta, to oppose the land conversion, arguing that the lands are customary and serve as their source of life.
Bakar said that the government has revoked the forest land utilization permits of two companies, namely PT MJR and PT KCP.
The permits, which allowed the companies to convert the use of 38 thousand hectares of forest land in Boven Digoel, were granted during the 2010–2012 period. Read more Antara News
--------
Louis Dreyfus to expand Indonesia palm oil refining business, executive says
SINGAPORE : Agricultural commodity merchant Louis Dreyfus Company (LDC) is expanding its palm oil refining business in Indonesia, which will include construction of a new glycerine plant and higher production of biodiesel, a senior company official said.
LDC, which processes agricultural goods, has been expanding its operations in Asia to tap into the growing demand for food products.
"LDC is investing significantly to expand its refining complex in Lampung with the addition of a new glycerine refining plant, edible oil packing plant and warehouse," Rubens Marques, LDC's chief executive for South and Southeast Asia, told Reuters this week.
"These developments support our strategy to diversify revenue through value-added products by driving operational efficiency and synergies at the site."
The glycerine refining plant in Lampung will have an annual production capacity of 55,000 metric tons, primarily serving manufacturers of food, pharmaceutical and personal care products. Read more Channel News Asia
|
|
|
June 12, 2024
EU ill-prepared to implement its own deforestation law, says grain trade association COCERAL
LONDON, June 11 (Reuters) - The European Union is ill-prepared to implement the bloc's new law aimed at banning the import of commodities and related goods linked to deforestation, an EU grain trade association said on Tuesday.
The law, which comes into effect end-December, requires importers of coffee, cocoa, beef, soy, rubber, timber and palm oil to prove their supply chains aren't contributing to deforestation anywhere in the world, or be fined up to 4% of their turnover inside the EU.
The rules apply equally to European farmers, who will be banned from exporting products cultivated on deforested land.
The head of grain trade group Coceral, Iliana Axiotiades, said both the European Commission and European member state authorities in charge of implementing the European Union Deforestation Regulation (EUDR) are not ready.
"Even the information system, the IT the industry will need to feed (information into) is not ready," Axiotiades told delegates at an International Grains Council (IGC) conference in London.
Asked whether the landmark legislation, which in time could reshape global commodity markets, will be delayed, Axiotiades said: "I believe a decision will be made to take into account the lack of preparation".
In March, some 20 EU members asked Brussels to scale back and possibly suspend the EUDR, saying the policy would harm farmers.
EU leaders have watered down numerous environmental measures in an attempt to quell months of protests by angry farmers over issues including EU green policies and cheap imports.
Producing countries from Indonesia to Brazil have also criticised the law, saying it is discriminatory and that the new rules could end up excluding vulnerable, small-scale farmers from accessing the EU's lucrative market.
Their fear is that farmers in remote, rural regions might, for example, be unable to provide buyers of their goods with geolocation co-ordinates to prove their farms are not on land deforested after 2020 - one of the law's key requirements. Read more Reuters
--------
UK Retailers ‘in limbo’ as deforestation laws put on pause ahead of general election
UK supermarkets have been left “in a limbo” after government plans to press ahead with anti-deforestation laws were put on pause ahead of the general election, according to an industry figure.
Retailers last month were awaiting on secondary legislation to be laid to deliver the forest-risk commodities regulation. This would require them to prove that a number of commodities sourced through their supply chains – like soy and cocoa – were not linked to illegal deforestation.
The proposals were put forward by the Conservative government as part of an amendment to the Environment Act and expected to roll out swiftly, as Britain has targets to end deforestation linked to some commodities by 2025.
Businesses have been making changes to their supply chains in recent months in preparation, as they also gear up for similar regulation to roll out in the EU later this year.
However, the forest-risk commodities regulation was not a part of the pre-election wash-up, leaving retailers with uncertainty over whether the law will be amended or even picked up at all by a new government.
There were particular worries around what a potential Labour government approach to the current proposals would be, the retail source said.
“The main concern is that the future government may not decide to continue with the due diligence regulation because they see the EU are already delivering on that, so there is a Brussels effect and therefore we won’t have to do it ourselves.”
At the same time, it was “unlikely that a Labour government will want to go against the goodwill of the deforestation due diligence regulation”, they added. Read more The Grocer
--------
Indonesia's Coordinating Minister Airlangga Visits Russia to Promote Economic and Investment Cooperation
Jakarta. In a bid to enhance economic cooperation with various countries and boost exports to maintain the national trade surplus, Chief Economic Minister Airlangga Hartarto embarked on a working visit and held several bilateral meetings in Moscow, Russia, from June 10 to 12.
During his visit, Minister Airlangga met with several ministers and CEOs of leading Russian companies. He is also scheduled to receive the Medal for Contribution to International Cooperation from the Russian government and celebrate Russia Day on June 12.
On the first day of his visit, Minister Airlangga had a special meeting with Andrey Slepnev, Trade Minister of the Eurasian Economic Commission (EEC). They discussed various strategic cooperation issues in the economic and trade sectors, including the acceleration of the Indonesia-Eurasian Economic Union Free Trade Agreement (Indonesia-EAEU FTA) negotiations and solutions to eliminate trade barriers between the two parties.
"Indonesia encourages the acceleration of the Indonesia-EAEU FTA negotiations, which are expected to be completed this year. This will benefit businesses looking to expand into Eastern Europe and Central Asia," said Minister Airlangga.
Minister Airlangga emphasized Indonesia's ongoing efforts to increase palm oil exports to EAEU member countries, noting that Indonesian palm oil meets health and sustainability standards. Read more Jakarta Globe
--------
Malaysia-Johor Plantations, Kulim Eye Biggest Malaysian IPO in Two Years
(Bloomberg) -- Malaysian palm oil producer Johor Plantations Group Bhd and a shareholder expect to raise about ringgit 735 million ringgit ($156 million) in an initial public offering, putting the group on track to execute the country’s biggest listing in over two years.
JPG kicked off its IPO on Wednesday with an offering of up to 875 million shares, representing a 35% stake in the company, according to terms of the deal seen by Bloomberg News. The IPO exercise values the palm oil firm at 2.1 billion ringgit.
The share sale is set to be the largest in Malaysia since Farm Fresh Bhd’s $240 million offering in March 2022, data compiled by Bloomberg show. JPG’s parent — Kulim Malaysia Bhd., the plantations arm of Johor Corp., the development and investment business of the Johor state government — is also offering shares in the IPO, and will retain a 65% stake in the company after the listing.
“We intend to diversify to meet our future growth aspirations by becoming a fully integrated palm oil producer through our venture into the downstream segment, which focuses on specialty oils and fats,” JPG Managing Director Mohd Faris Adli Shukery said in Kuala Lumpur.
Malaysia is the world’s biggest palm oil producer after Indonesia. JPG will be Johor Corp.’s second unit to be publicly listed after health-care division KPJ Healthcare Bhd, which is valued at 8.56 billion ringgit.
The IPO comes as benchmark prices for palm oil traded in Kuala Lumpur disappoint analysts due to lukewarm demand. A strong US dollar, tepid Chinese economy and concerns of a robust recovery in supplies from the world’s biggest growers have contributed to the weakness. Read more BNN Bloomberg
EU ill-prepared to implement its own deforestation law, says grain trade association COCERAL
LONDON, June 11 (Reuters) - The European Union is ill-prepared to implement the bloc's new law aimed at banning the import of commodities and related goods linked to deforestation, an EU grain trade association said on Tuesday.
The law, which comes into effect end-December, requires importers of coffee, cocoa, beef, soy, rubber, timber and palm oil to prove their supply chains aren't contributing to deforestation anywhere in the world, or be fined up to 4% of their turnover inside the EU.
The rules apply equally to European farmers, who will be banned from exporting products cultivated on deforested land.
The head of grain trade group Coceral, Iliana Axiotiades, said both the European Commission and European member state authorities in charge of implementing the European Union Deforestation Regulation (EUDR) are not ready.
"Even the information system, the IT the industry will need to feed (information into) is not ready," Axiotiades told delegates at an International Grains Council (IGC) conference in London.
Asked whether the landmark legislation, which in time could reshape global commodity markets, will be delayed, Axiotiades said: "I believe a decision will be made to take into account the lack of preparation".
In March, some 20 EU members asked Brussels to scale back and possibly suspend the EUDR, saying the policy would harm farmers.
EU leaders have watered down numerous environmental measures in an attempt to quell months of protests by angry farmers over issues including EU green policies and cheap imports.
Producing countries from Indonesia to Brazil have also criticised the law, saying it is discriminatory and that the new rules could end up excluding vulnerable, small-scale farmers from accessing the EU's lucrative market.
Their fear is that farmers in remote, rural regions might, for example, be unable to provide buyers of their goods with geolocation co-ordinates to prove their farms are not on land deforested after 2020 - one of the law's key requirements. Read more Reuters
--------
UK Retailers ‘in limbo’ as deforestation laws put on pause ahead of general election
UK supermarkets have been left “in a limbo” after government plans to press ahead with anti-deforestation laws were put on pause ahead of the general election, according to an industry figure.
Retailers last month were awaiting on secondary legislation to be laid to deliver the forest-risk commodities regulation. This would require them to prove that a number of commodities sourced through their supply chains – like soy and cocoa – were not linked to illegal deforestation.
The proposals were put forward by the Conservative government as part of an amendment to the Environment Act and expected to roll out swiftly, as Britain has targets to end deforestation linked to some commodities by 2025.
Businesses have been making changes to their supply chains in recent months in preparation, as they also gear up for similar regulation to roll out in the EU later this year.
However, the forest-risk commodities regulation was not a part of the pre-election wash-up, leaving retailers with uncertainty over whether the law will be amended or even picked up at all by a new government.
There were particular worries around what a potential Labour government approach to the current proposals would be, the retail source said.
“The main concern is that the future government may not decide to continue with the due diligence regulation because they see the EU are already delivering on that, so there is a Brussels effect and therefore we won’t have to do it ourselves.”
At the same time, it was “unlikely that a Labour government will want to go against the goodwill of the deforestation due diligence regulation”, they added. Read more The Grocer
--------
Indonesia's Coordinating Minister Airlangga Visits Russia to Promote Economic and Investment Cooperation
Jakarta. In a bid to enhance economic cooperation with various countries and boost exports to maintain the national trade surplus, Chief Economic Minister Airlangga Hartarto embarked on a working visit and held several bilateral meetings in Moscow, Russia, from June 10 to 12.
During his visit, Minister Airlangga met with several ministers and CEOs of leading Russian companies. He is also scheduled to receive the Medal for Contribution to International Cooperation from the Russian government and celebrate Russia Day on June 12.
On the first day of his visit, Minister Airlangga had a special meeting with Andrey Slepnev, Trade Minister of the Eurasian Economic Commission (EEC). They discussed various strategic cooperation issues in the economic and trade sectors, including the acceleration of the Indonesia-Eurasian Economic Union Free Trade Agreement (Indonesia-EAEU FTA) negotiations and solutions to eliminate trade barriers between the two parties.
"Indonesia encourages the acceleration of the Indonesia-EAEU FTA negotiations, which are expected to be completed this year. This will benefit businesses looking to expand into Eastern Europe and Central Asia," said Minister Airlangga.
Minister Airlangga emphasized Indonesia's ongoing efforts to increase palm oil exports to EAEU member countries, noting that Indonesian palm oil meets health and sustainability standards. Read more Jakarta Globe
--------
Malaysia-Johor Plantations, Kulim Eye Biggest Malaysian IPO in Two Years
(Bloomberg) -- Malaysian palm oil producer Johor Plantations Group Bhd and a shareholder expect to raise about ringgit 735 million ringgit ($156 million) in an initial public offering, putting the group on track to execute the country’s biggest listing in over two years.
JPG kicked off its IPO on Wednesday with an offering of up to 875 million shares, representing a 35% stake in the company, according to terms of the deal seen by Bloomberg News. The IPO exercise values the palm oil firm at 2.1 billion ringgit.
The share sale is set to be the largest in Malaysia since Farm Fresh Bhd’s $240 million offering in March 2022, data compiled by Bloomberg show. JPG’s parent — Kulim Malaysia Bhd., the plantations arm of Johor Corp., the development and investment business of the Johor state government — is also offering shares in the IPO, and will retain a 65% stake in the company after the listing.
“We intend to diversify to meet our future growth aspirations by becoming a fully integrated palm oil producer through our venture into the downstream segment, which focuses on specialty oils and fats,” JPG Managing Director Mohd Faris Adli Shukery said in Kuala Lumpur.
Malaysia is the world’s biggest palm oil producer after Indonesia. JPG will be Johor Corp.’s second unit to be publicly listed after health-care division KPJ Healthcare Bhd, which is valued at 8.56 billion ringgit.
The IPO comes as benchmark prices for palm oil traded in Kuala Lumpur disappoint analysts due to lukewarm demand. A strong US dollar, tepid Chinese economy and concerns of a robust recovery in supplies from the world’s biggest growers have contributed to the weakness. Read more BNN Bloomberg
|
|
|
June 11, 2024
International Coffee Partners adds to industry calls for EUDR delay
The seven-strong coalition of leading European coffee companies says many smallholder farmers do not have the data capture capabilities, time or financial resources to comply by the end of 2024 and has called for an additional transition period
European non-profit International Coffee Partners (ICP) has become latest industry body seeking a delay to the implementation of the European Union’s EU Deforestation Regulation (EUDR) to enable smallholder coffee farms more time to comply with the new law.
EUDR, which comes into force on 30 December 2024, requires businesses importing products to the EU considered ‘main drivers for deforestation’ – including coffee, palm oil, soya and wood – to produce a due diligence statement that imported goods have not contributed to forest degradation anywhere in the world after 31 December 2020.
In a press release, the ICP – a seven-strong coalition comprising Portugal’s Delta Cafès, Sweden’s Löfbergs, Croatia’s Franck, Norway’s Joh. Johannson, Italy’s Lavazza and Germany’s Neumann Gruppe and Tchibo – said that most smallholder coffee farmers currently do not have suitable data provision systems or the financial resources to comply with EUDR and face being excluded from the EU market.
The coalition warned that coffee farmers are likely to shift their sales to non-EU countries under current timeframes – a move it said would run counter to the goal of reducing coffee-linked deforestation.
While the ICP has broadly welcomed the need for EUDR, it is seeking an extended transition phase and increased support for smallholder coffee farmers to create necessary data provision structures.
“While the EUDR is an important step towards deforestation-free coffee production, it must also take into account the interest of smallholder farmers. Otherwise, the EUDR risks reducing smallholders’ incomes and market shares and increasing their vulnerability to poverty, impeding their potential transition to a more sustainable agriculture,” the ICP added. Read more World Coffee Portal
--------
MOU between Planet QEOS, KIS BIOCNG and SALCRA poised to boost Sarawak’s hydrogen economy
By Sustainability Matters June 11, 2024
Planet QEOS setting stage for hydrogen to be go-to energy source, accessible to all
Produce bio-hydrogen at reduced cost, utilizing innovative tech & local resources
Planet QEOS, KIS BIOCNG Sdn Bhd, and the Sarawak Land Consolidation and Rehabilitation Authority (SALCRA) have signed a MoU to establish a collaborative framework aimed at producing bio-hydrogen via the Steam Biomethane Reforming (SBMR) Process.
The MoU was signed by Dino Bidari, Executive Chairman of Planet QEOS, Raghunath K.R., CEO of KIS BIOCNG Sdn Bhd, and Sikin Anak Sentok, Deputy General Manager of SALCRA. Abang Jo, Premier of Sarawak, and Dr. Stephen Rundi, Minister for Food Industry, Commodity, and Regional Development Sarawak witnessed the signing.
The MoU outlined the cooperation among the three parties to produce bio-hydrogen using the SBMR process.
Planet QEOS: Will act as the bio-hydrogen producer, leveraging the advanced SBMR Process to generate hydrogen.
KIS BIOCNG: Will provide the necessary technology for biogas and bio-methane production, which serves as the essential feedstock for the SBMR Process.
SALCRA: Will supply the feedstock for bio-methane production from its palm oil mills and utilize its existing biogas production facilities.
The primary aim is to generate sustainable and cost-effective bio-hydrogen for commercial use in Sarawak. In a statement, Planet QEOS said the successful execution of this project will serve as a benchmark and proof of concept for harnessing waste from the extensive 1.8 million hectares of palm oil plantations in Sarawak for bio-hydrogen production. Read more DNA
--------
Indonesia-Palm Oil Farmers in Nehas Liah Bing Village Able to Protect Customary Forests and Villages Covering an Area of 45 Thousand Ha
InfoSAWIT, JAKARTA – Palm oil farmers in Nehas Liah Bing Village have agreed to become agents of change in environmentally and socially appropriate governance of oil palm plantations, by protecting customary and village forests as proof of this.
In Nehas Liah Bing Village there are 2 types of protected forests that have been determined in the village spatial plan, namely the Wehea Traditional Protected Forest covering an area of 42,760 hectares which is managed by the Nehas Liah Bing Village Traditional Institution, and the Village Forest covering an area of 3,124 hectares which is managed by BumDes Nehas Liah Bing.
Long Bau Hamlet, Nehas Liah Bing Village, Muara Wahau District, East Kutai Regency, witnessed the pride expressed by the Sejahtera Palm Oil Business Cooperative (KSU). This cooperative, which consists of independent oil palm farmers, has become an agent of positive change in the sustainable governance of oil palm plantations.
Established in 2000 and then obtaining a legal entity on February 2 2000, the Sejahtera Tani Palm Oil Cooperative has embarked on a long journey. By joining the Roundtable on Sustainable Palm Oil (RSPO), this cooperative strengthens its commitment to sustainable agricultural practices, providing a significant social impact on the community and surrounding environment. Read more Infosawit
International Coffee Partners adds to industry calls for EUDR delay
The seven-strong coalition of leading European coffee companies says many smallholder farmers do not have the data capture capabilities, time or financial resources to comply by the end of 2024 and has called for an additional transition period
European non-profit International Coffee Partners (ICP) has become latest industry body seeking a delay to the implementation of the European Union’s EU Deforestation Regulation (EUDR) to enable smallholder coffee farms more time to comply with the new law.
EUDR, which comes into force on 30 December 2024, requires businesses importing products to the EU considered ‘main drivers for deforestation’ – including coffee, palm oil, soya and wood – to produce a due diligence statement that imported goods have not contributed to forest degradation anywhere in the world after 31 December 2020.
In a press release, the ICP – a seven-strong coalition comprising Portugal’s Delta Cafès, Sweden’s Löfbergs, Croatia’s Franck, Norway’s Joh. Johannson, Italy’s Lavazza and Germany’s Neumann Gruppe and Tchibo – said that most smallholder coffee farmers currently do not have suitable data provision systems or the financial resources to comply with EUDR and face being excluded from the EU market.
The coalition warned that coffee farmers are likely to shift their sales to non-EU countries under current timeframes – a move it said would run counter to the goal of reducing coffee-linked deforestation.
While the ICP has broadly welcomed the need for EUDR, it is seeking an extended transition phase and increased support for smallholder coffee farmers to create necessary data provision structures.
“While the EUDR is an important step towards deforestation-free coffee production, it must also take into account the interest of smallholder farmers. Otherwise, the EUDR risks reducing smallholders’ incomes and market shares and increasing their vulnerability to poverty, impeding their potential transition to a more sustainable agriculture,” the ICP added. Read more World Coffee Portal
--------
MOU between Planet QEOS, KIS BIOCNG and SALCRA poised to boost Sarawak’s hydrogen economy
By Sustainability Matters June 11, 2024
Planet QEOS setting stage for hydrogen to be go-to energy source, accessible to all
Produce bio-hydrogen at reduced cost, utilizing innovative tech & local resources
Planet QEOS, KIS BIOCNG Sdn Bhd, and the Sarawak Land Consolidation and Rehabilitation Authority (SALCRA) have signed a MoU to establish a collaborative framework aimed at producing bio-hydrogen via the Steam Biomethane Reforming (SBMR) Process.
The MoU was signed by Dino Bidari, Executive Chairman of Planet QEOS, Raghunath K.R., CEO of KIS BIOCNG Sdn Bhd, and Sikin Anak Sentok, Deputy General Manager of SALCRA. Abang Jo, Premier of Sarawak, and Dr. Stephen Rundi, Minister for Food Industry, Commodity, and Regional Development Sarawak witnessed the signing.
The MoU outlined the cooperation among the three parties to produce bio-hydrogen using the SBMR process.
Planet QEOS: Will act as the bio-hydrogen producer, leveraging the advanced SBMR Process to generate hydrogen.
KIS BIOCNG: Will provide the necessary technology for biogas and bio-methane production, which serves as the essential feedstock for the SBMR Process.
SALCRA: Will supply the feedstock for bio-methane production from its palm oil mills and utilize its existing biogas production facilities.
The primary aim is to generate sustainable and cost-effective bio-hydrogen for commercial use in Sarawak. In a statement, Planet QEOS said the successful execution of this project will serve as a benchmark and proof of concept for harnessing waste from the extensive 1.8 million hectares of palm oil plantations in Sarawak for bio-hydrogen production. Read more DNA
--------
Indonesia-Palm Oil Farmers in Nehas Liah Bing Village Able to Protect Customary Forests and Villages Covering an Area of 45 Thousand Ha
InfoSAWIT, JAKARTA – Palm oil farmers in Nehas Liah Bing Village have agreed to become agents of change in environmentally and socially appropriate governance of oil palm plantations, by protecting customary and village forests as proof of this.
In Nehas Liah Bing Village there are 2 types of protected forests that have been determined in the village spatial plan, namely the Wehea Traditional Protected Forest covering an area of 42,760 hectares which is managed by the Nehas Liah Bing Village Traditional Institution, and the Village Forest covering an area of 3,124 hectares which is managed by BumDes Nehas Liah Bing.
Long Bau Hamlet, Nehas Liah Bing Village, Muara Wahau District, East Kutai Regency, witnessed the pride expressed by the Sejahtera Palm Oil Business Cooperative (KSU). This cooperative, which consists of independent oil palm farmers, has become an agent of positive change in the sustainable governance of oil palm plantations.
Established in 2000 and then obtaining a legal entity on February 2 2000, the Sejahtera Tani Palm Oil Cooperative has embarked on a long journey. By joining the Roundtable on Sustainable Palm Oil (RSPO), this cooperative strengthens its commitment to sustainable agricultural practices, providing a significant social impact on the community and surrounding environment. Read more Infosawit
|
|
|
June 10, 2024
Far-right gains in the EU election deal stunning defeats to France’s Macron and Germany’s Scholz
BRUSSELS (AP) — Far-right parties rattled the traditional powers in the European Union and made major gains in parliamentary elections Sunday, dealing an especially humiliating defeat to French President Emmanuel Macron.
On a night where the 27-member bloc palpably shifted to the right, Italian Prime Minister Giorgia Meloni more than doubled her seats in the EU parliament. And even if the Alternative for Germany extreme right party was hounded by scandal involving candidates, it still rallied enough seats to sweep past the slumping Social Democrats of Chancellor Olaf Scholz.
Sensing a threat from the far right, the Christian Democrats of EU Commission President Ursula von der Leyen had already shifted further to the right on migration and climate ahead of the elections — and were rewarded by remaining by far the biggest group in the 720-seat European Parliament and de facto brokers of the ever expanding powers of the legislature. Read more AP
--------
For context, read Politico's Europe is turning to the right: Here’s how that will impact trade policy
From how to deal with China to a possible Donald Trump return to the White House, POLITICO previews how the next European Parliament could shape EU trade policy. Politico
--------
There’s More to Asia-Middle East Trade Than Oil
There is some $47 billion in untapped trade between Southeast Asia and the Middle East, according to HSBC, highlighting an emerging economic corridor linking some of the world’s fastest-growing regions.
That would expand trade between the two regions by over a third from the $126 billion registered last year — nearly 80% of which is oil imported by the likes of Thailand, Philippines and Vietnam, HSBC economists wrote in a report last week.
Southeast Asia’s integration in the global supply chains could see it ship more electronics and machinery and potentially double its $30 billion in exports to the Gulf, which is currently dominated by palm oil from Malaysia and cars from Thailand.
Meanwhile, Gulf states can tap Southeast Asia’s huge consumer markets and boost exports by $18 billion through plastics, chemicals and metals, HSBC said. A free trade agreement would help bring down the high tariff levels between the two regional blocs, it added. Bloomberg
---------
Palm oil firms with high ESG transparency are less valued than less compliant peers: NUS study
ESG premium is not prevalent in the industry.
Palm oil companies that are more transparent in their ESG reporting appeared to be less valued by investors, according to a study by the Centre for Governance and Sustainability (CGS) at the National University of Singapore (NUS) Business School.
The study found that the more palm oil companies are in ESG reporting, the less their companies are valued compared to their less compliant peers. Firms with high ESG transparency were seen to have lower price-to-earnings (P/E) ratios but could also offer investors a higher return for their price relative to earnings.
The findings, however, signal that ESG premium is not prevalent in the industry and that investors hold a divestment-led investment strategy in a higher regard than ESG integration among palm oil companies.
“Investors need to be mindful of the impact of ESG responsibility not only on corporate financial performance and value, but also on non-financial performance. The ultimate goal of ESG responsibilities is to incorporate socially acceptable norms into business activities to achieve sustainable goals for the greater societal good,” said Lawrence Loh, a professor and director of the centre for governance and sustainability at NUS Business School.
“We must do more to show that sustainability and profitability are not mutually exclusive,” Loh added.
Loh also called on the governments to step up in encouraging palm oil companies to improve their transparency in ESG reporting.
The study analysed 36 publicly listed palm oil companies including those based in Indonesia, Malaysia, Japan, and the United Kingdom.
Following the same trend, a separate study by AXA Investment Managers showed ESG investing in Singapore is declining SBR
--------
Indonesia is emerging as a base in Southeast Asia for domestic companies.
This is thanks to abundant resources such as nickel, tin, cobalt, and gas, as well as abundant manpower stemming from the world's fourth-largest population. Indonesia received 660 billion won from Korea in the fourth quarter of last year. It is the fifth largest foreign direct investment country in the world after Vietnam. Since the money went, a lot of domestic personnel must have been sent. This time, the boss man wants to deal with the K-company and its expatriates that he saw in Indonesia.
In April, head coach Shin Tae-yong led the Indonesian national soccer team to the U-23 Asian Cup and advanced to the semifinals with consecutive wins against Australia, Jordan and South Korea. The team, which was also considered weak in Asia, only made three upsets in a row (the lower team beating the upper team). At that time, the Indonesian adult team ranked 134th. It is also a part of the nostalgia of the match between Portugal, Italy, and Spain held by the Taegeuk Warriors in 2002.
Just like Hiddink in Korea, Shin Tae-yong in Indonesia is very popular. Even children in rural areas know that mobile data is not working. He said "Corea," which means Korea, to the unknown question of a child who was running and playing regardless of rain, and "Sinta Yong" (Shin Tae-yong's Indonesian pronunciation) came back to the answer.
The Sinta-yong Magic has also been useful for training local employees of Korean companies. Lee Sang-moo, executive director of LX International's Inni Mineral Business Division, said, "After the Indonesian soccer team beat Jordan, I emphasized to my employees that if they receive disciplined training under Koreans, they can improve their skills far more." "The next game was against Korea, and it was unfortunate as a result, but I was worried about what if Korea won too big and the employees were against it." Read more Maeil Business Paper
--------
More agricultural deals in the pipeline
PUTRAJAYA: Malaysia’s trade in palm oil and other agricultural commodities with China is set to deepen with an upcoming memorandum of understanding (MOU) that is expected to be signed later this year, says Datuk Chan Foong Hin.
The Deputy Plantation and Commodities Minister said the MOU is also an important milestone to mark 50 years of diplomatic relations between Malaysia and China.
“(The MOU) is set to be finalised this year, either when Chinese Premier Li Qiang visits Malaysia or when Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani goes to China,” he said.
The MOU will be signed between Malaysia’s Plantation and Commodities Ministry and China’s Agriculture and Rural Affairs Ministry.
“With our collaborative efforts, palm oil trade will deepen and continue to reach new historic highs,” said Chan, adding that increasing exports of such high value-added palm oil products to China is part of the ministry’s new direction.
China has been Malaysia’s largest trading partner for 15 consecutive years, he said, and both countries enjoy a friendly, collaborative relationship. The StarMY
--------
Nigeria races to comply with EU’s regulation for cocoa export ahead December deadline
The Nigerian governments is racing to comply with the new regulations set by the European Union in order to sustain export of her cocoa products to the European market as the December, 2024 deadline nears.
The European Union Deforestation Regulation (EUDR) is a regulation which prohibits products from entering the EU market unless they are deforestation-free and legally produced. The Regulation applies to wood, palm oil, soy, coffee, cocoa, rubber and cattle, as well as most of the derivatives. Under cocoa, it applies to beans, products and chocolate.
The regulation entered into force on June 29, 2023, with an 18 month preparation period that will expire on December 30, 2024 when it fully enters into application.
The National Cocoa Management Committee convened critical stakeholders in cocoa sub-sector in Abuja to strategize how to boost Nigeria’s cocoa production, and most importantly address the gaps to ensure the country complies with EU standards.
The Committee serves as the regulatory body for all matters that concerns the cocoa sector. It was inaugurated by the Ministry of Agriculture and Food Security and comprises of members that cut across all the sectors in the cocoa value chain.
Patrick Adebola, Executive Director of the Committee, informed that govenrnent and all stakeholders are putting heads together on the EUDR, noting that if Nigeria does not comply with the standards, the country may no longer be able to export cocoa beans and products to Europe, which is the biggest market for the country. Read more Business DayNG
--------
Palm oil consumption eliminates dandruff, prevents cancer, relieves pain: Nutritionist
Olufunmilola Adewumi, chief nutritionist and head of the department at Shomolu General Hospital, told journalists in Lagos that palm oil contains linoleic acid (Omega 6), carotenoids (antioxidants), phytosterols, vitamin K, lauric and capric acids, and medium-chain triglycerides (anti-microbial and anti-fungal agents).
The dietitian noted that palm oil has many health benefits over vegetable oil, which contains 15 per cent unsaturated fats, 50 per cent of mono-saturated fats, and 35 per cent polyunsaturated fats.
Ms Adewumi said palm oil enhances the absorption of essential vitamin A, adding, “Due to its rich source of vitamin E, lycopene, and beta-carotene, palm oil serves as antioxidants that reduce oxidative stress, prevent cancer, safeguard the brain tissues, and reduce age-related muscular degeneration.
“It also contains vitamin K, which is crucial for blood clotting and bone health and when ingested moderately daily, it provides cardio-protective, anti-diabetic, anti-inflammatory and anti-thrombotic effects.
“When palm oil is used topically, it restores hydration to dry skin, soothes headaches, relieves pain associated with rheumatism and aids in healing of wounds and skin infections. Read more Peoples Gazette
--------
New refinery seen to boost palm oil industry
Agriculture Secretary Francisco Tiu Laurel Jr. and Philippine Coconut Authority administrator Dexter Buted lauded Garcia Refinery Corp., a private company, for inaugurating a P600-million palm oil refinery as the first in Mindanao.
The refinery is expected to spur further development of the palm oil industry in the country.
“The establishment of the first palm oil refinery in the SOCCSKSARGEN Region underscores the immense potential for growth and development within the palm oil sector. This embodies the aspiration of the industry stakeholders to become a dynamic, innovative, and self-sufficient industry that provides benefits and stable supply of vegetable oils for the country,” said Tiu Laurel.
SOCCSKSARGEN groups South Cotabato, Cotabato, Sultan Kudarat, Sarangani and General Santos City.
“The new GARECO refinery brings more than just infrastructure; it brings hope and opportunities. It will create job opportunities for local communities in SOCCSKSARGEN, providing employment to oil palm farmers, laborers, and other stakeholders involved in the palm oil value chain. It is likewise poised to stimulate economic growth in the region, thereby enhancing the quality of life for many,” he said. Read more Manila Standard
Far-right gains in the EU election deal stunning defeats to France’s Macron and Germany’s Scholz
BRUSSELS (AP) — Far-right parties rattled the traditional powers in the European Union and made major gains in parliamentary elections Sunday, dealing an especially humiliating defeat to French President Emmanuel Macron.
On a night where the 27-member bloc palpably shifted to the right, Italian Prime Minister Giorgia Meloni more than doubled her seats in the EU parliament. And even if the Alternative for Germany extreme right party was hounded by scandal involving candidates, it still rallied enough seats to sweep past the slumping Social Democrats of Chancellor Olaf Scholz.
Sensing a threat from the far right, the Christian Democrats of EU Commission President Ursula von der Leyen had already shifted further to the right on migration and climate ahead of the elections — and were rewarded by remaining by far the biggest group in the 720-seat European Parliament and de facto brokers of the ever expanding powers of the legislature. Read more AP
--------
For context, read Politico's Europe is turning to the right: Here’s how that will impact trade policy
From how to deal with China to a possible Donald Trump return to the White House, POLITICO previews how the next European Parliament could shape EU trade policy. Politico
--------
There’s More to Asia-Middle East Trade Than Oil
There is some $47 billion in untapped trade between Southeast Asia and the Middle East, according to HSBC, highlighting an emerging economic corridor linking some of the world’s fastest-growing regions.
That would expand trade between the two regions by over a third from the $126 billion registered last year — nearly 80% of which is oil imported by the likes of Thailand, Philippines and Vietnam, HSBC economists wrote in a report last week.
Southeast Asia’s integration in the global supply chains could see it ship more electronics and machinery and potentially double its $30 billion in exports to the Gulf, which is currently dominated by palm oil from Malaysia and cars from Thailand.
Meanwhile, Gulf states can tap Southeast Asia’s huge consumer markets and boost exports by $18 billion through plastics, chemicals and metals, HSBC said. A free trade agreement would help bring down the high tariff levels between the two regional blocs, it added. Bloomberg
---------
Palm oil firms with high ESG transparency are less valued than less compliant peers: NUS study
ESG premium is not prevalent in the industry.
Palm oil companies that are more transparent in their ESG reporting appeared to be less valued by investors, according to a study by the Centre for Governance and Sustainability (CGS) at the National University of Singapore (NUS) Business School.
The study found that the more palm oil companies are in ESG reporting, the less their companies are valued compared to their less compliant peers. Firms with high ESG transparency were seen to have lower price-to-earnings (P/E) ratios but could also offer investors a higher return for their price relative to earnings.
The findings, however, signal that ESG premium is not prevalent in the industry and that investors hold a divestment-led investment strategy in a higher regard than ESG integration among palm oil companies.
“Investors need to be mindful of the impact of ESG responsibility not only on corporate financial performance and value, but also on non-financial performance. The ultimate goal of ESG responsibilities is to incorporate socially acceptable norms into business activities to achieve sustainable goals for the greater societal good,” said Lawrence Loh, a professor and director of the centre for governance and sustainability at NUS Business School.
“We must do more to show that sustainability and profitability are not mutually exclusive,” Loh added.
Loh also called on the governments to step up in encouraging palm oil companies to improve their transparency in ESG reporting.
The study analysed 36 publicly listed palm oil companies including those based in Indonesia, Malaysia, Japan, and the United Kingdom.
Following the same trend, a separate study by AXA Investment Managers showed ESG investing in Singapore is declining SBR
--------
Indonesia is emerging as a base in Southeast Asia for domestic companies.
This is thanks to abundant resources such as nickel, tin, cobalt, and gas, as well as abundant manpower stemming from the world's fourth-largest population. Indonesia received 660 billion won from Korea in the fourth quarter of last year. It is the fifth largest foreign direct investment country in the world after Vietnam. Since the money went, a lot of domestic personnel must have been sent. This time, the boss man wants to deal with the K-company and its expatriates that he saw in Indonesia.
In April, head coach Shin Tae-yong led the Indonesian national soccer team to the U-23 Asian Cup and advanced to the semifinals with consecutive wins against Australia, Jordan and South Korea. The team, which was also considered weak in Asia, only made three upsets in a row (the lower team beating the upper team). At that time, the Indonesian adult team ranked 134th. It is also a part of the nostalgia of the match between Portugal, Italy, and Spain held by the Taegeuk Warriors in 2002.
Just like Hiddink in Korea, Shin Tae-yong in Indonesia is very popular. Even children in rural areas know that mobile data is not working. He said "Corea," which means Korea, to the unknown question of a child who was running and playing regardless of rain, and "Sinta Yong" (Shin Tae-yong's Indonesian pronunciation) came back to the answer.
The Sinta-yong Magic has also been useful for training local employees of Korean companies. Lee Sang-moo, executive director of LX International's Inni Mineral Business Division, said, "After the Indonesian soccer team beat Jordan, I emphasized to my employees that if they receive disciplined training under Koreans, they can improve their skills far more." "The next game was against Korea, and it was unfortunate as a result, but I was worried about what if Korea won too big and the employees were against it." Read more Maeil Business Paper
--------
More agricultural deals in the pipeline
PUTRAJAYA: Malaysia’s trade in palm oil and other agricultural commodities with China is set to deepen with an upcoming memorandum of understanding (MOU) that is expected to be signed later this year, says Datuk Chan Foong Hin.
The Deputy Plantation and Commodities Minister said the MOU is also an important milestone to mark 50 years of diplomatic relations between Malaysia and China.
“(The MOU) is set to be finalised this year, either when Chinese Premier Li Qiang visits Malaysia or when Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani goes to China,” he said.
The MOU will be signed between Malaysia’s Plantation and Commodities Ministry and China’s Agriculture and Rural Affairs Ministry.
“With our collaborative efforts, palm oil trade will deepen and continue to reach new historic highs,” said Chan, adding that increasing exports of such high value-added palm oil products to China is part of the ministry’s new direction.
China has been Malaysia’s largest trading partner for 15 consecutive years, he said, and both countries enjoy a friendly, collaborative relationship. The StarMY
--------
Nigeria races to comply with EU’s regulation for cocoa export ahead December deadline
The Nigerian governments is racing to comply with the new regulations set by the European Union in order to sustain export of her cocoa products to the European market as the December, 2024 deadline nears.
The European Union Deforestation Regulation (EUDR) is a regulation which prohibits products from entering the EU market unless they are deforestation-free and legally produced. The Regulation applies to wood, palm oil, soy, coffee, cocoa, rubber and cattle, as well as most of the derivatives. Under cocoa, it applies to beans, products and chocolate.
The regulation entered into force on June 29, 2023, with an 18 month preparation period that will expire on December 30, 2024 when it fully enters into application.
The National Cocoa Management Committee convened critical stakeholders in cocoa sub-sector in Abuja to strategize how to boost Nigeria’s cocoa production, and most importantly address the gaps to ensure the country complies with EU standards.
The Committee serves as the regulatory body for all matters that concerns the cocoa sector. It was inaugurated by the Ministry of Agriculture and Food Security and comprises of members that cut across all the sectors in the cocoa value chain.
Patrick Adebola, Executive Director of the Committee, informed that govenrnent and all stakeholders are putting heads together on the EUDR, noting that if Nigeria does not comply with the standards, the country may no longer be able to export cocoa beans and products to Europe, which is the biggest market for the country. Read more Business DayNG
--------
Palm oil consumption eliminates dandruff, prevents cancer, relieves pain: Nutritionist
Olufunmilola Adewumi, chief nutritionist and head of the department at Shomolu General Hospital, told journalists in Lagos that palm oil contains linoleic acid (Omega 6), carotenoids (antioxidants), phytosterols, vitamin K, lauric and capric acids, and medium-chain triglycerides (anti-microbial and anti-fungal agents).
The dietitian noted that palm oil has many health benefits over vegetable oil, which contains 15 per cent unsaturated fats, 50 per cent of mono-saturated fats, and 35 per cent polyunsaturated fats.
Ms Adewumi said palm oil enhances the absorption of essential vitamin A, adding, “Due to its rich source of vitamin E, lycopene, and beta-carotene, palm oil serves as antioxidants that reduce oxidative stress, prevent cancer, safeguard the brain tissues, and reduce age-related muscular degeneration.
“It also contains vitamin K, which is crucial for blood clotting and bone health and when ingested moderately daily, it provides cardio-protective, anti-diabetic, anti-inflammatory and anti-thrombotic effects.
“When palm oil is used topically, it restores hydration to dry skin, soothes headaches, relieves pain associated with rheumatism and aids in healing of wounds and skin infections. Read more Peoples Gazette
--------
New refinery seen to boost palm oil industry
Agriculture Secretary Francisco Tiu Laurel Jr. and Philippine Coconut Authority administrator Dexter Buted lauded Garcia Refinery Corp., a private company, for inaugurating a P600-million palm oil refinery as the first in Mindanao.
The refinery is expected to spur further development of the palm oil industry in the country.
“The establishment of the first palm oil refinery in the SOCCSKSARGEN Region underscores the immense potential for growth and development within the palm oil sector. This embodies the aspiration of the industry stakeholders to become a dynamic, innovative, and self-sufficient industry that provides benefits and stable supply of vegetable oils for the country,” said Tiu Laurel.
SOCCSKSARGEN groups South Cotabato, Cotabato, Sultan Kudarat, Sarangani and General Santos City.
“The new GARECO refinery brings more than just infrastructure; it brings hope and opportunities. It will create job opportunities for local communities in SOCCSKSARGEN, providing employment to oil palm farmers, laborers, and other stakeholders involved in the palm oil value chain. It is likewise poised to stimulate economic growth in the region, thereby enhancing the quality of life for many,” he said. Read more Manila Standard
|
|
|
June 09, 2024
EU Deforestation law risks pushing Indonesia toward China
However well-intended, the EU’s directive has particularly rattled producers in the Indo-Pacific region.
BY ANCHAL VOHRA
Anchal Vohra is a Brussels-based international affairs commentator.
When Austria’s ministers of agriculture and economy called on the European Commission to delay the implementation of its European Union Deforestation legislation (EUDR), exporters in the Indo-Pacific and Latin America sighed with relief.
The EUDR is part of the EU’s ambitious Green Deal, and it hopes to put an end to the felling of trees at home and abroad that are down to consumption in Europe. Between 1990 and 2020, an area larger than the Continent was deforested, and the EU is considered responsible for 10 percent of global deforestation.
However well-intended, though, the directive has rattled producers in Europe and its allies in the developing world — particularly those in the Indo-Pacific region, where the EU hopes trading partners will derisk from China. Several stakeholders and experts told POLITICO the EUDR wasn’t well thought-through and, at this stage, perhaps far too demanding to actually work, imposing too heavy administrative and financial burdens without offering sufficient details regarding compliance .
“It was pushed through quite quickly,” said Bernd Lange, chair of the European Parliament’s Committee on International Trade. “It’s a massive (administrative) exercise,” concurred Giorgio Indarto, an Indonesian expert in environmental law. “And too expensive.’’
Speaking to POLITICO from an Indonesian district that exports palm oil to Europe, Indarto noted that the biggest problem was the lack of trust the EU displayed in the legislation, which left Jakarta feeling belittled and angry. “The EU only wants its own standards and mechanisms ’’ to trace the origin of products, he said. Read more Politico
--------
The Chinese palm seed variety is called Re-you 6, but palm oil plantations in China face high costs
InfoSAWIT, JAKARTA – Robert Hii, palm oil industry observer and founder of the independent website CSPO Watch, emphasized the cost factor in developing oil palm plantations in China. He said that although the development of oil palm seed varieties suitable for China had spread, in fact the Malaysian and Indonesian palm oil sectors did not care. Because, there is no explanation of how obstacles, especially labor costs, will be overcome.
“While overseas writers like to portray palm oil as cheap, that is actually a misunderstanding. "It may be more productive by region than soybean oil or rapeseed oil, but it is very labor intensive, and that is never reflected in global prices," said Robert Hii, reported by Chinadialogue .
He further said, soybeans and rapeseed can be planted and harvested mechanically, while oil palm cultivation must be done manually. Palm Fresh Fruit Bunches (FFB), weighing more than 20 kg, need to be harvested and moved manually, and many of the plantation workers he interviewed suffered from kyphosis – an abnormal curvature of the spine – as a result of hard physical labor. The only comparable vegetable oil crop is olives, but the extra labor is reflected in the price of olive oil.
The palm oil sector in Southeast Asia has a problem of dependence on cheap labor. According to a 2020 report on targets and fair wages in the palm oil sector in Indonesia, published by the Earthworm Foundation, the average harvester earns just IDR 120,000 a day (around 54 yuan, or US$ 8.50) if they are able to harvest 1 .2 tons of fruit per day, and even then not all workers are able to meet it. Read more Infosawit
--------
South Papua MRP asks the vice president to evaluate palm oil plantation permits in Papua
InfoSAWIT, MERAUKE – During the working visit of the Vice President of the Republic of Indonesia to Merauke, a number of members of the Papuan People's Assembly (MRP) of South Papua Province conveyed their aspirations. Katarina Mariana Yaas, a member of the South Papua MRP, revealed that they had asked the Vice President to immediately evaluate oil palm plantation permits in the area.
"We also ask that all investors, both future and existing in South Papua, are obliged to obey and respect local customary laws," said Katarina Mariana Yaas to journalists at the South Papua MRP Office, Thursday (6/6/2024).
Katarina explained that every company operating in South Papua is obliged to fulfill their obligations in accordance with the Plantation Law, namely building plasma plantations amounting to 20 percent of the total land they use. This evaluation is considered important to ensure that investment in South Papua, especially oil palm plantations, is carried out in accordance with regulations. Read more Infosawit
--------
Nigeria-Kogi State Signs MoU With Solidaridad To Boost Agriculture Sector
The Kogi State government has signed a memorandum of understanding (MoU) with Solidaridad to boost support on agricultural productivity and food security in the country.
The Kogi state believed in agriculture transformation current has a largest farm in Suleja Niger State precisely, Kogi state is a complex state with great opportunity in numerous agriculture potentials
During the unveiling launch of Phase 2 Projects in Abuja, the Kogi State governor represented by the SGF Kogi State, Dr. Folashade Arike Ayoade,
commend the Solidaridad and NIPCONS for recognising Kogi state. She reaffirmed the commitment of support from the state to transform agriculture in general.
She said, “God has blessed Kogi state with arable land which is at the centre of the nation and surrounded by River Niger, River Benue. We seek this opportunity to commend the UK government and Kingdom of Netherlands for supporting collaboration in achieving these initiatives.” Read more LeadershipNG
EU Deforestation law risks pushing Indonesia toward China
However well-intended, the EU’s directive has particularly rattled producers in the Indo-Pacific region.
BY ANCHAL VOHRA
Anchal Vohra is a Brussels-based international affairs commentator.
When Austria’s ministers of agriculture and economy called on the European Commission to delay the implementation of its European Union Deforestation legislation (EUDR), exporters in the Indo-Pacific and Latin America sighed with relief.
The EUDR is part of the EU’s ambitious Green Deal, and it hopes to put an end to the felling of trees at home and abroad that are down to consumption in Europe. Between 1990 and 2020, an area larger than the Continent was deforested, and the EU is considered responsible for 10 percent of global deforestation.
However well-intended, though, the directive has rattled producers in Europe and its allies in the developing world — particularly those in the Indo-Pacific region, where the EU hopes trading partners will derisk from China. Several stakeholders and experts told POLITICO the EUDR wasn’t well thought-through and, at this stage, perhaps far too demanding to actually work, imposing too heavy administrative and financial burdens without offering sufficient details regarding compliance .
“It was pushed through quite quickly,” said Bernd Lange, chair of the European Parliament’s Committee on International Trade. “It’s a massive (administrative) exercise,” concurred Giorgio Indarto, an Indonesian expert in environmental law. “And too expensive.’’
Speaking to POLITICO from an Indonesian district that exports palm oil to Europe, Indarto noted that the biggest problem was the lack of trust the EU displayed in the legislation, which left Jakarta feeling belittled and angry. “The EU only wants its own standards and mechanisms ’’ to trace the origin of products, he said. Read more Politico
--------
The Chinese palm seed variety is called Re-you 6, but palm oil plantations in China face high costs
InfoSAWIT, JAKARTA – Robert Hii, palm oil industry observer and founder of the independent website CSPO Watch, emphasized the cost factor in developing oil palm plantations in China. He said that although the development of oil palm seed varieties suitable for China had spread, in fact the Malaysian and Indonesian palm oil sectors did not care. Because, there is no explanation of how obstacles, especially labor costs, will be overcome.
“While overseas writers like to portray palm oil as cheap, that is actually a misunderstanding. "It may be more productive by region than soybean oil or rapeseed oil, but it is very labor intensive, and that is never reflected in global prices," said Robert Hii, reported by Chinadialogue .
He further said, soybeans and rapeseed can be planted and harvested mechanically, while oil palm cultivation must be done manually. Palm Fresh Fruit Bunches (FFB), weighing more than 20 kg, need to be harvested and moved manually, and many of the plantation workers he interviewed suffered from kyphosis – an abnormal curvature of the spine – as a result of hard physical labor. The only comparable vegetable oil crop is olives, but the extra labor is reflected in the price of olive oil.
The palm oil sector in Southeast Asia has a problem of dependence on cheap labor. According to a 2020 report on targets and fair wages in the palm oil sector in Indonesia, published by the Earthworm Foundation, the average harvester earns just IDR 120,000 a day (around 54 yuan, or US$ 8.50) if they are able to harvest 1 .2 tons of fruit per day, and even then not all workers are able to meet it. Read more Infosawit
--------
South Papua MRP asks the vice president to evaluate palm oil plantation permits in Papua
InfoSAWIT, MERAUKE – During the working visit of the Vice President of the Republic of Indonesia to Merauke, a number of members of the Papuan People's Assembly (MRP) of South Papua Province conveyed their aspirations. Katarina Mariana Yaas, a member of the South Papua MRP, revealed that they had asked the Vice President to immediately evaluate oil palm plantation permits in the area.
"We also ask that all investors, both future and existing in South Papua, are obliged to obey and respect local customary laws," said Katarina Mariana Yaas to journalists at the South Papua MRP Office, Thursday (6/6/2024).
Katarina explained that every company operating in South Papua is obliged to fulfill their obligations in accordance with the Plantation Law, namely building plasma plantations amounting to 20 percent of the total land they use. This evaluation is considered important to ensure that investment in South Papua, especially oil palm plantations, is carried out in accordance with regulations. Read more Infosawit
--------
Nigeria-Kogi State Signs MoU With Solidaridad To Boost Agriculture Sector
The Kogi State government has signed a memorandum of understanding (MoU) with Solidaridad to boost support on agricultural productivity and food security in the country.
The Kogi state believed in agriculture transformation current has a largest farm in Suleja Niger State precisely, Kogi state is a complex state with great opportunity in numerous agriculture potentials
During the unveiling launch of Phase 2 Projects in Abuja, the Kogi State governor represented by the SGF Kogi State, Dr. Folashade Arike Ayoade,
commend the Solidaridad and NIPCONS for recognising Kogi state. She reaffirmed the commitment of support from the state to transform agriculture in general.
She said, “God has blessed Kogi state with arable land which is at the centre of the nation and surrounded by River Niger, River Benue. We seek this opportunity to commend the UK government and Kingdom of Netherlands for supporting collaboration in achieving these initiatives.” Read more LeadershipNG
|
|
|
June 08, 2024
EU Deforestation Regulation: Relevant local laws in Thailand
Nishimura & Asahi (Gaikokuho Kyodo Jigyo)
Under the European Union’s new Regulation on Deforestation-free products, any operator or trader who places relevant products which were made from seven specific commodities (cattle, wood, cocoa, soy, palm oil, coffee or rubber) on the EU market, or exports from it, must conduct due diligence to ensure that (i) the relevant commodities and products are “deforestation-free” and (ii) have been produced in accordance with the relevant legislation of the country of production. As Thailand is a major producer of some of those commodities, local law compliance in the production of those commodities in Thailand constitutes an important part of the due diligence requirements under the Regulation, even though the Regulation itself is EU law. This newsletter highlights some of the potentially-relevant laws and regulations in Thailand for the operators and traders who have supply chains in the country.
1. Regulations regarding land use rights
Thailand is an agricultural country and a majority of the population is engaged in farming. Although land is the primary basis for agricultural production, farmers pay costly land rents and face disadvantages in land tenancy. As a result, the Thai government enacted the Agriculture Land Reform Act B.E. 2518 (1975) (as amended) (the “Land Reform Act”) in order to reduce certain socioeconomic gaps.
In implementing the Land Reform Act, an Agricultural Land Reform Executive Committee (the “Committee”) would have power to nominate Land Reform Areas, the actual designation of which will be enacted by royal decree. The criteria considered in such process are, for example, presence within the boundaries of a district that has a large number of landless farmers or land holdings beneath a certain size that are insufficient to cover the farmer’s cost of living, etc. Read more Lexology
---------
Malaysia's rigorous palm oil standard deserves recognition for sustainability says experts
LETTERS: Malaysia's mandatory palm oil certification scheme, the Malaysian Sustainable Palm Oil (MSPO), is a world-class standard capable of helping Malaysian exporters and European customers adhere to stringent no-deforestation regulations.
This conclusion emerged from a recent webinar organised by the Malaysian Palm Oil Council (MPOC), featuring experts from the European Forest Institute (EFI), Dr Jossil Murray and Pierre Bois d'Enghien, a leading palm oil and rubber certification expert and the author of the MSPO EUDR gap analysis.
Over recent months, the EFI and Bois d'Enghien have conducted independent assessments of the MSPO standard, concluding that it includes robust requirements for no deforestation, mandatory reporting and auditing.
Bois d'Enghien said: "The MSPO is by any standards a world-class standard for agriculture."
The assessments also evaluated how closely MSPO aligns with the European Union's new Deforestation Regulation (EUDR), a complex regulation imposing new regulatory burdens on seven commodities imported into the EU, including palm oil.
The EUDR aims to reduce the EU's importation of products linked to deforestation, affecting stakeholders in Malaysia's palm oil supply chain. Read more New Straits Times
EU Deforestation Regulation: Relevant local laws in Thailand
Nishimura & Asahi (Gaikokuho Kyodo Jigyo)
Under the European Union’s new Regulation on Deforestation-free products, any operator or trader who places relevant products which were made from seven specific commodities (cattle, wood, cocoa, soy, palm oil, coffee or rubber) on the EU market, or exports from it, must conduct due diligence to ensure that (i) the relevant commodities and products are “deforestation-free” and (ii) have been produced in accordance with the relevant legislation of the country of production. As Thailand is a major producer of some of those commodities, local law compliance in the production of those commodities in Thailand constitutes an important part of the due diligence requirements under the Regulation, even though the Regulation itself is EU law. This newsletter highlights some of the potentially-relevant laws and regulations in Thailand for the operators and traders who have supply chains in the country.
1. Regulations regarding land use rights
Thailand is an agricultural country and a majority of the population is engaged in farming. Although land is the primary basis for agricultural production, farmers pay costly land rents and face disadvantages in land tenancy. As a result, the Thai government enacted the Agriculture Land Reform Act B.E. 2518 (1975) (as amended) (the “Land Reform Act”) in order to reduce certain socioeconomic gaps.
In implementing the Land Reform Act, an Agricultural Land Reform Executive Committee (the “Committee”) would have power to nominate Land Reform Areas, the actual designation of which will be enacted by royal decree. The criteria considered in such process are, for example, presence within the boundaries of a district that has a large number of landless farmers or land holdings beneath a certain size that are insufficient to cover the farmer’s cost of living, etc. Read more Lexology
---------
Malaysia's rigorous palm oil standard deserves recognition for sustainability says experts
LETTERS: Malaysia's mandatory palm oil certification scheme, the Malaysian Sustainable Palm Oil (MSPO), is a world-class standard capable of helping Malaysian exporters and European customers adhere to stringent no-deforestation regulations.
This conclusion emerged from a recent webinar organised by the Malaysian Palm Oil Council (MPOC), featuring experts from the European Forest Institute (EFI), Dr Jossil Murray and Pierre Bois d'Enghien, a leading palm oil and rubber certification expert and the author of the MSPO EUDR gap analysis.
Over recent months, the EFI and Bois d'Enghien have conducted independent assessments of the MSPO standard, concluding that it includes robust requirements for no deforestation, mandatory reporting and auditing.
Bois d'Enghien said: "The MSPO is by any standards a world-class standard for agriculture."
The assessments also evaluated how closely MSPO aligns with the European Union's new Deforestation Regulation (EUDR), a complex regulation imposing new regulatory burdens on seven commodities imported into the EU, including palm oil.
The EUDR aims to reduce the EU's importation of products linked to deforestation, affecting stakeholders in Malaysia's palm oil supply chain. Read more New Straits Times
|
|
|
June 07, 2024
The Race to Meet EU Sourcing Rules Spans Six Continents
From a lush corner of Sumatra to the mountains of Honduras, farmers around the world are racing to map out their land.
That’s a prerequisite if they want to continue to ship their produce to the European Union as part of the bloc’s new law aimed at curbing deforestation, known under the acronym EUDR.
By late 2024, large companies handling seven key commodities — coffee, cocoa, soy, palm oil, cattle, rubber and wood, and products derived from them — will be required to prove that people in their supply chains didn’t work land that was deforested after 2020, legally or illegally.
That means that every coffee bean, carcass of beef and log of wood — along with such things as chocolate, tires and books — will need to be traced to the exact locations they came from, or the EU will levy hefty penalties.
But the geolocating task is huge and nowhere near done, threatening far-reaching consequences for more than $110 billion of trade annually and economies across six continents. Already, there are warnings of higher prices for consumers in Europe. Bloomberg
--------
Most cocoa still untraceable ahead of new EU deforestation law
More than three-quarters of the EU’s cocoa supply is not traceable to the farm where it was produced, with only months to go until the introduction of a new EU law requiring companies to prove that their products are not linked to deforestation.
The data is part of a new report by the Retailer Cocoa Collaboration, a coalition of 11 UK and EU retailers, including Tesco, Aldi, Ahold Delhaize and Carrefour.
The average proportion of a trader’s direct supply of cocoa traceable to farm has jumped from 52 percent in 2022 to 71 percent in 2023. Three traders were able to report near-full traceability of their direct supply chain.
Traceability of traders’ indirect supply of cocoa increased significantly in 2023, but still reached 22 percent compared to nine percent in 2022.
“Traders source as much as 97 percent of their cocoa indirectly, so this means that overall, the sector is not yet ready for the EUDR (EU deforestation directive),” said Holly Cooper, the report’s lead author, though she added that the traceability gap is expected to continue to close in 2024.
Though indirectly-sourced cocoa can still be EUDR compliant it is often not fully covered by a trader's sustainability commitments and actions.
“More fundamentally, this lack of traceability means the sector has significant blind spots in its ability to understand and address sustainability risks in the cocoa supply chain.”
“Traders have told us that there is a significant resource burden being felt for EUDR compliance,” Cooper told EUobserver. Read more EU Observer
--------
Nigerian Importers In Dilemma Over N552bn Trapped Palm Oil Cargoes
Importers may have giving up on 475,000 tonnes of palm oil valued at N552 billion or – dered from Malaysia and Thai – land following the 35 per cent tariff and the floating import duty imposed by the Federal Government.
The tariff was slammed in order to boost local production of the produce. Findings from Nigerian Ports Authority (NPA) revealed that only one vessel, Zeze Start, berthed with 15,456 tonnes of the produce valued at $13.26 million at the Apapa Bulk Terminal Limited (ABTL) of the Lagos Port since the beginning of the year.
The produce was shipped to Nigeria from Malaysia in January as the Federal Government imposed a 35 per cent tariff on its importation (10 per cent duty and 25 per cent levy) or N165.6billion ($118.3 million).
It was also revealed that importers had been unable to take delivery of the produce as the import duty used in calculating cargoes at the port has gone up by 60 per cent.
Also, it was learnt that the cost of buying palm oil had reached $858 per tonne in the global market. Nigeria’s palm oil output is estimated at 1.3 million tonnes, while the demand is 2.1 million tonnes, leading to a supply gap of 800,000 tonnes. New TelegraphNG
--------
Japan’s Tokyo Gas restarts earthquake-hit biomass unit
Japanese utility Tokyo Gas resumed commercial operations at its 51.5MW Fushiki Manyofuto biomass power plant from mid-May following earthquake-related disruptions in January.
The power plant is located in Toyama prefecture of the Hokuriku region, which was hit by a 7.6 magnitude earthquake on 1 January. The unit was already shut because of a technical issue prior to the earthquake, with it then forced to extend its closure with damage from earthquake-related liquefaction.
The company has made necessary repairs to restart the plant, such as fixing distorted piping. It began trial runs on 14 May, then resumed commercial operation on 16 May. Key generation infrastructure, including its boiler and turbine, were not seriously damaged by the earthquake.
Fushiki Manyofuto came on line in July 2022, burning around 200,000 t/yr of wood pellets imported from Canada and southeast Asia. It currently is not consuming palm kernel shells.
Tokyo Gas also operates the 75MW Ichihara Yawatafuto biomass power plant in Chiba prefecture, which plans to burn 270,000 t/yr of wood pellets. Its debut was scheduled for January this year but this was postponed and no new start-up date has been set.
By Takeshi Maeda Argus Media
The Race to Meet EU Sourcing Rules Spans Six Continents
From a lush corner of Sumatra to the mountains of Honduras, farmers around the world are racing to map out their land.
That’s a prerequisite if they want to continue to ship their produce to the European Union as part of the bloc’s new law aimed at curbing deforestation, known under the acronym EUDR.
By late 2024, large companies handling seven key commodities — coffee, cocoa, soy, palm oil, cattle, rubber and wood, and products derived from them — will be required to prove that people in their supply chains didn’t work land that was deforested after 2020, legally or illegally.
That means that every coffee bean, carcass of beef and log of wood — along with such things as chocolate, tires and books — will need to be traced to the exact locations they came from, or the EU will levy hefty penalties.
But the geolocating task is huge and nowhere near done, threatening far-reaching consequences for more than $110 billion of trade annually and economies across six continents. Already, there are warnings of higher prices for consumers in Europe. Bloomberg
--------
Most cocoa still untraceable ahead of new EU deforestation law
More than three-quarters of the EU’s cocoa supply is not traceable to the farm where it was produced, with only months to go until the introduction of a new EU law requiring companies to prove that their products are not linked to deforestation.
The data is part of a new report by the Retailer Cocoa Collaboration, a coalition of 11 UK and EU retailers, including Tesco, Aldi, Ahold Delhaize and Carrefour.
The average proportion of a trader’s direct supply of cocoa traceable to farm has jumped from 52 percent in 2022 to 71 percent in 2023. Three traders were able to report near-full traceability of their direct supply chain.
Traceability of traders’ indirect supply of cocoa increased significantly in 2023, but still reached 22 percent compared to nine percent in 2022.
“Traders source as much as 97 percent of their cocoa indirectly, so this means that overall, the sector is not yet ready for the EUDR (EU deforestation directive),” said Holly Cooper, the report’s lead author, though she added that the traceability gap is expected to continue to close in 2024.
Though indirectly-sourced cocoa can still be EUDR compliant it is often not fully covered by a trader's sustainability commitments and actions.
“More fundamentally, this lack of traceability means the sector has significant blind spots in its ability to understand and address sustainability risks in the cocoa supply chain.”
“Traders have told us that there is a significant resource burden being felt for EUDR compliance,” Cooper told EUobserver. Read more EU Observer
--------
Nigerian Importers In Dilemma Over N552bn Trapped Palm Oil Cargoes
Importers may have giving up on 475,000 tonnes of palm oil valued at N552 billion or – dered from Malaysia and Thai – land following the 35 per cent tariff and the floating import duty imposed by the Federal Government.
The tariff was slammed in order to boost local production of the produce. Findings from Nigerian Ports Authority (NPA) revealed that only one vessel, Zeze Start, berthed with 15,456 tonnes of the produce valued at $13.26 million at the Apapa Bulk Terminal Limited (ABTL) of the Lagos Port since the beginning of the year.
The produce was shipped to Nigeria from Malaysia in January as the Federal Government imposed a 35 per cent tariff on its importation (10 per cent duty and 25 per cent levy) or N165.6billion ($118.3 million).
It was also revealed that importers had been unable to take delivery of the produce as the import duty used in calculating cargoes at the port has gone up by 60 per cent.
Also, it was learnt that the cost of buying palm oil had reached $858 per tonne in the global market. Nigeria’s palm oil output is estimated at 1.3 million tonnes, while the demand is 2.1 million tonnes, leading to a supply gap of 800,000 tonnes. New TelegraphNG
--------
Japan’s Tokyo Gas restarts earthquake-hit biomass unit
Japanese utility Tokyo Gas resumed commercial operations at its 51.5MW Fushiki Manyofuto biomass power plant from mid-May following earthquake-related disruptions in January.
The power plant is located in Toyama prefecture of the Hokuriku region, which was hit by a 7.6 magnitude earthquake on 1 January. The unit was already shut because of a technical issue prior to the earthquake, with it then forced to extend its closure with damage from earthquake-related liquefaction.
The company has made necessary repairs to restart the plant, such as fixing distorted piping. It began trial runs on 14 May, then resumed commercial operation on 16 May. Key generation infrastructure, including its boiler and turbine, were not seriously damaged by the earthquake.
Fushiki Manyofuto came on line in July 2022, burning around 200,000 t/yr of wood pellets imported from Canada and southeast Asia. It currently is not consuming palm kernel shells.
Tokyo Gas also operates the 75MW Ichihara Yawatafuto biomass power plant in Chiba prefecture, which plans to burn 270,000 t/yr of wood pellets. Its debut was scheduled for January this year but this was postponed and no new start-up date has been set.
By Takeshi Maeda Argus Media
|
|
|
June 06, 2024
MPOB calls for setting up of oil hub, redistribution centre in Egypt
KUALA LUMPUR: Malaysia should take advantage of its recent cooperation with Egypt by establishing an oil hub or redistribution centre, according to the Malaysian Palm Oil Board (MPOB).
Its director-general Datuk Dr Ahmad Parveez Ghulam Kadir emphasised the mutual benefits of the initiative, highlighting the promising results from the current mission, which underscored both nations' eagerness to cooperate in investments within the agro-commodities sectors and bulking facilities.
"By leveraging Egypt's strategic position and ability to re-export to neighbouring countries, Malaysia can consider establishing a hub for Malaysian palm-based downstream products at one of Egypt's major ports.
"This will enable us to provide the required palm-based downstream products to the industry promptly and efficiently," Ahmad Parveez told Business Times.
The proposed hub in Egypt would serve as a vital link in the distribution chain, ensuring timely delivery of palm oil products to markets in the Middle East and North Africa.
"This can also encourage small quantity imports by Egyptian industry members directly from Malaysian exporters, thus eliminating the additional cost of dealing with a third party," said Ahmad Parveez. Read more Business Times
--------
MPOB calls for setting up of oil hub, redistribution centre in Egypt
KUALA LUMPUR: Malaysia should take advantage of its recent cooperation with Egypt by establishing an oil hub or redistribution centre, according to the Malaysian Palm Oil Board (MPOB).
Its director-general Datuk Dr Ahmad Parveez Ghulam Kadir emphasised the mutual benefits of the initiative, highlighting the promising results from the current mission, which underscored both nations' eagerness to cooperate in investments within the agro-commodities sectors and bulking facilities.
"By leveraging Egypt's strategic position and ability to re-export to neighbouring countries, Malaysia can consider establishing a hub for Malaysian palm-based downstream products at one of Egypt's major ports.
"This will enable us to provide the required palm-based downstream products to the industry promptly and efficiently," Ahmad Parveez told Business Times.
The proposed hub in Egypt would serve as a vital link in the distribution chain, ensuring timely delivery of palm oil products to markets in the Middle East and North Africa.
"This can also encourage small quantity imports by Egyptian industry members directly from Malaysian exporters, thus eliminating the additional cost of dealing with a third party," said Ahmad Parveez. Read more Business Times
--------
June 05, 2024
Indonesia designs agricultural commodities digital tracker in sustainability push
JAKARTA, June 5 (Reuters) - Indonesia plans to set up a digital dashboard by August to track its agricultural commodities, its economics ministry said, as the world's top palm oil exporter looks to monitor $6.5 billion worth of products that face a new EU anti-deforestation rule.
The dashboard aims to increase the transparency of the supply chain of agriculture commodities such as palm oil, coffee and rubber, and better promote sustainability standards in the country, the ministry said in a statement on Wednesday.
It said that would help Indonesian exports navigate the European Union Deforestation-free Regulation (EUDR), set to be implemented at the end of 2024, which will ban imports of commodities linked to deforestation.
Indonesian exports of palm oil, cocoa, coffee, rubber and timber worth 6 billion euros ($6.5 billion) will be affected by the EUDR, Jakarta has previously estimated.
"We must be able to track goods that we trade so that we can improve trading going forward," said Musdhalifah Machmud, deputy minister with the Coordinating Ministry of Economic Affairs.
Indonesia plans to start running the dashboard ahead of a meeting of a joint task force with the EU and Malaysia in September, during which the three will discuss the implementation of the EUDR.
Indonesia and Malaysia have said the EUDR is a discriminatory policy targeting their palm oil. The EU said the rules are to ensure the bloc does not contribute to forest degradation worldwide. Reuters
--------
Top 10: Nigeria Emerges No 1 African Country Making Palm Oil, Airlines Mull Product as Aviation Fuel
These days, palm oil is a necessary component of many goods used daily, such as food, cosmetics, and even biofuels This reasonably priced, multipurpose vegetable oil has seen a remarkable rise in demand lately; hence it has created more jobs According to information from the World Agricultural Production, Nigeria leads the list of the top 10 African nations that produce palm oil
However, palm oil production has also been connected to human rights violations and environmental harm.
In spite of these reservations, palm oil production continues to be a significant sector in many nations, particularly those in Africa, creating jobs and fostering economic expansion. Based on information from the World Agricultural Production, the following list is the list of the top 10 African nations that produce palm oil
Read more: https://www.legit.ng/business-economy/industry/1595720-top-10-nigeria-emerges-african-country-making-palm-oil-airlines-mull-product-aviation-fuel/
--------
Nigeria’s Presco to acquire Ghanaian oil palm firm for $124.9m
Nigeria’s oil palm company, Presco Plc, is currently in talks to acquire a 100% equity stake in the Ghanaian Oil Palm Development Company (GOPDC).
The acquisition is projected to amount to $124.9 million, with Presco purchasing 70,580,000 ordinary shares of GOPDC at a price of $1.77 per share.
Presco, in a statement, said it will initially deposit $64.962 million, with the remaining balance to be settled in the future.
The statement added that Presco expects that the deal will aid in its currency diversification efforts, as GOPDC generates approximately 41% of its revenue from export sales.
GODPC is currently a subsidiary of Société d’Investissement pour l’Agriculture Tropicale (Siat) SA, one of the key shareholders in Presco,” the statement read. Read more The GuardianNG
--------
Nigeria, Indonesia to explore export-driven strategies on oil palm
The federal government says it will collaborate with the Indonesia in exploring export-driven strategies per oil palm.
The federal government says it will collaborate with the Indonesia in exploring export-driven strategies to enhance economic growth and development in oil palm.
Aliyu Abdullahi, Minister of State, Federal Ministry of Agriculture and Food Security, gave the assurance in a meeting with the Pahala Mansury, Vice-President, Foreign Affairs, Indonesia, on Tuesday in Abuja.
Mr Abubakar identified palm oil as having huge potentials of export.
“The growth strategy of Nigeria recognises that as much as we will be talking about import substitution, the best solution is for us to have export driven strategies. We can accommodate investors so that we can take the oil palm to the next level of economic growth and development. Read more Peoples Gazette
--------
Netherlands-funded agric project launches second phase of NISCOPS scheme for farmers
Solidaridad and IDH, a Netherlands-funded programme have launched phase two of the National Initiative for Sustainable and Climate Smart Oil Palm Smallholders (NISCOPS) which targets to improve the production of oil palm while fostering a climate-friendly activity.
Speaking with journalists at the launch of the project on Tuesday in Abuja, the Ambassador of the Kingdom of the Netherlands to Nigeria, Wouter Plomp, said his country as part of its commitment to Nigeria is launching the second phase of NISCOPS to sustain a more environment-friendly and also a more social future of the palm oil production in Nigeria.
“You know very well that palm oil is vital for Nigeria’s economy, but so is the future of Nigeria’s precious forests and so is equitability in the division of the gains of the palm oil sector. So what we aim to achieve by this project is to have a more sustainable future and a more equitable future for palm oil production in Nigeria,” Plomp said. Read more Tribune Online
--------
Sustainable palm oil provides exceptional benefits for your skin and body
By Dr Nur Khaisiyah Othman
In today's world, many of us tend to look for products that help to make us look good and stay healthy, and one ingredient stands out for its remarkable benefits: sustainable palm oil.
Derived from the fruit of oil palm trees, this versatile oil is not only a staple in many kitchens but also a key ingredient in numerous skincare products. Palm oil's incredible versatility as an aid for both internal health and external beauty makes it an indispensable part of a holistic wellness regimen.
For those concerned about heart health, sustainable palm oil offers a compelling benefit in reducing cholesterol levels. According to a study published in the National Library of Medicines, "palm oil does not have an incremental risk for cardiovascular disease" when consumed as part of a balanced diet. By incorporating an appropriate amount of sustainable palm oil into your diet, you can enjoy its rich, buttery flavour while supporting your heart health.
Beyond its culinary uses, sustainable palm oil is a superstar in skincare. When used as an ingredient in skin cream, palm oil has the ability to deeply nourish the skin and create a protective barrier against environmental pollutants, making it invaluable. When applied topically, palm oil helps to restore hydration and prevent further dryness by sealing in moisture. This is particularly beneficial for sensitive skin, which can easily become irritated by harsh weather conditions and pollution. Read more New Straits Times
Indonesia designs agricultural commodities digital tracker in sustainability push
JAKARTA, June 5 (Reuters) - Indonesia plans to set up a digital dashboard by August to track its agricultural commodities, its economics ministry said, as the world's top palm oil exporter looks to monitor $6.5 billion worth of products that face a new EU anti-deforestation rule.
The dashboard aims to increase the transparency of the supply chain of agriculture commodities such as palm oil, coffee and rubber, and better promote sustainability standards in the country, the ministry said in a statement on Wednesday.
It said that would help Indonesian exports navigate the European Union Deforestation-free Regulation (EUDR), set to be implemented at the end of 2024, which will ban imports of commodities linked to deforestation.
Indonesian exports of palm oil, cocoa, coffee, rubber and timber worth 6 billion euros ($6.5 billion) will be affected by the EUDR, Jakarta has previously estimated.
"We must be able to track goods that we trade so that we can improve trading going forward," said Musdhalifah Machmud, deputy minister with the Coordinating Ministry of Economic Affairs.
Indonesia plans to start running the dashboard ahead of a meeting of a joint task force with the EU and Malaysia in September, during which the three will discuss the implementation of the EUDR.
Indonesia and Malaysia have said the EUDR is a discriminatory policy targeting their palm oil. The EU said the rules are to ensure the bloc does not contribute to forest degradation worldwide. Reuters
--------
Top 10: Nigeria Emerges No 1 African Country Making Palm Oil, Airlines Mull Product as Aviation Fuel
These days, palm oil is a necessary component of many goods used daily, such as food, cosmetics, and even biofuels This reasonably priced, multipurpose vegetable oil has seen a remarkable rise in demand lately; hence it has created more jobs According to information from the World Agricultural Production, Nigeria leads the list of the top 10 African nations that produce palm oil
However, palm oil production has also been connected to human rights violations and environmental harm.
In spite of these reservations, palm oil production continues to be a significant sector in many nations, particularly those in Africa, creating jobs and fostering economic expansion. Based on information from the World Agricultural Production, the following list is the list of the top 10 African nations that produce palm oil
Read more: https://www.legit.ng/business-economy/industry/1595720-top-10-nigeria-emerges-african-country-making-palm-oil-airlines-mull-product-aviation-fuel/
--------
Nigeria’s Presco to acquire Ghanaian oil palm firm for $124.9m
Nigeria’s oil palm company, Presco Plc, is currently in talks to acquire a 100% equity stake in the Ghanaian Oil Palm Development Company (GOPDC).
The acquisition is projected to amount to $124.9 million, with Presco purchasing 70,580,000 ordinary shares of GOPDC at a price of $1.77 per share.
Presco, in a statement, said it will initially deposit $64.962 million, with the remaining balance to be settled in the future.
The statement added that Presco expects that the deal will aid in its currency diversification efforts, as GOPDC generates approximately 41% of its revenue from export sales.
GODPC is currently a subsidiary of Société d’Investissement pour l’Agriculture Tropicale (Siat) SA, one of the key shareholders in Presco,” the statement read. Read more The GuardianNG
--------
Nigeria, Indonesia to explore export-driven strategies on oil palm
The federal government says it will collaborate with the Indonesia in exploring export-driven strategies per oil palm.
The federal government says it will collaborate with the Indonesia in exploring export-driven strategies to enhance economic growth and development in oil palm.
Aliyu Abdullahi, Minister of State, Federal Ministry of Agriculture and Food Security, gave the assurance in a meeting with the Pahala Mansury, Vice-President, Foreign Affairs, Indonesia, on Tuesday in Abuja.
Mr Abubakar identified palm oil as having huge potentials of export.
“The growth strategy of Nigeria recognises that as much as we will be talking about import substitution, the best solution is for us to have export driven strategies. We can accommodate investors so that we can take the oil palm to the next level of economic growth and development. Read more Peoples Gazette
--------
Netherlands-funded agric project launches second phase of NISCOPS scheme for farmers
Solidaridad and IDH, a Netherlands-funded programme have launched phase two of the National Initiative for Sustainable and Climate Smart Oil Palm Smallholders (NISCOPS) which targets to improve the production of oil palm while fostering a climate-friendly activity.
Speaking with journalists at the launch of the project on Tuesday in Abuja, the Ambassador of the Kingdom of the Netherlands to Nigeria, Wouter Plomp, said his country as part of its commitment to Nigeria is launching the second phase of NISCOPS to sustain a more environment-friendly and also a more social future of the palm oil production in Nigeria.
“You know very well that palm oil is vital for Nigeria’s economy, but so is the future of Nigeria’s precious forests and so is equitability in the division of the gains of the palm oil sector. So what we aim to achieve by this project is to have a more sustainable future and a more equitable future for palm oil production in Nigeria,” Plomp said. Read more Tribune Online
--------
Sustainable palm oil provides exceptional benefits for your skin and body
By Dr Nur Khaisiyah Othman
In today's world, many of us tend to look for products that help to make us look good and stay healthy, and one ingredient stands out for its remarkable benefits: sustainable palm oil.
Derived from the fruit of oil palm trees, this versatile oil is not only a staple in many kitchens but also a key ingredient in numerous skincare products. Palm oil's incredible versatility as an aid for both internal health and external beauty makes it an indispensable part of a holistic wellness regimen.
For those concerned about heart health, sustainable palm oil offers a compelling benefit in reducing cholesterol levels. According to a study published in the National Library of Medicines, "palm oil does not have an incremental risk for cardiovascular disease" when consumed as part of a balanced diet. By incorporating an appropriate amount of sustainable palm oil into your diet, you can enjoy its rich, buttery flavour while supporting your heart health.
Beyond its culinary uses, sustainable palm oil is a superstar in skincare. When used as an ingredient in skin cream, palm oil has the ability to deeply nourish the skin and create a protective barrier against environmental pollutants, making it invaluable. When applied topically, palm oil helps to restore hydration and prevent further dryness by sealing in moisture. This is particularly beneficial for sensitive skin, which can easily become irritated by harsh weather conditions and pollution. Read more New Straits Times
|
|
|
June 03, 2024
Indonesian President Jokowi Calls for Fair Treatment of Indonesian Palm Oil in Talks with Norway
Jakarta. President Joko "Jokowi" Widodo urged the Norwegian government to avoid discriminatory practices against Indonesian palm oil. This request was made during a meeting with Norway's Minister of Climate and Environment, Andreas Bjelland Erikson, at the Merdeka State Palace in Jakarta on Sunday.
Erikson was accompanied by Indonesia's Environment and Forestry Minister, Siti Nurbaya Bakar, and Finance Minister, Sri Mulyani.
"In the meeting, the President requested that Norway ensure accurate understanding and perceptions to prevent discrimination against palm oil," said Siti Nurbaya during a press conference at the Presidential Palace complex in Jakarta.
Indonesia is currently protesting the EU Deforestation-Free Regulation, which is seen as discriminatory towards palm oil.
"Indonesia is also scrutinizing the land inventory method, and we are continuously working on this," she added.
The discussion also covered the Memorandum of Understanding (MoU) between the Indonesian and Norwegian governments to achieve Indonesia's Forestry and Other Land Uses (FOLU) Net-Sink 2030 target.
"We discussed the MoU cooperation between Indonesia and Norway, with the main goal being the Indonesia Forestry and Other Land Uses. Concrete support or contributions were mentioned, such as a climate action achievement worth US$ 156 million, equivalent to 30.2 million tons of carbon," Siti Nurbaya continued.
Andreas Bjelland Erikson praised the Indonesian government's efforts to reduce deforestation by 90 percent in his response. This achievement has prompted Norway to rekindle its environmental cooperation with Indonesia.
"We proudly present our cooperation and collaboration with Indonesia due to its significant achievements in reducing deforestation over the past few years," said Erikson. Read more Jakarta Globe
--------
Deforestation success evidence of effective fund management: Minister
Jakarta (ANTARA) - Finance Minister Sri Mulyani Indrawati emphasized that Indonesia’s successful reduction in deforestation serves as evidence of effective management of environmental funds from abroad.
She explained that Norway, among other countries, closely monitors Indonesia's commitment to deforestation reduction.
She made the statement after attending a meeting between President Joko Widodo and Norwegian Climate and Environment Minister Andreas Bjelland Eriksen at the Presidential Palace in Jakarta on Sunday.
"The BPDLH (Indonesia Environment Fund) … has gained international trust as an institution capable of efficiently, accountably, and transparently delivering results-based funds," she said.
Indonesia and Norway collaborate through result-based contributions for Reducing Emissions from Deforestation and Forest Degradation (REDD+). A 20-million-ton reduction in carbon emissions during 2014–2016 was offset by REDD+ funding through the BPDLH.
However, disbursement of these funds hinges on Indonesia’s continued progress in deforestation reduction.
Operating under the Ministry of Finance, the BPDLH receives grant funds not only from the Norwegian government but also from the World Bank and other philanthropic institutions. Read more Antara News
--------
Indonesia must align land inventory method with EUDR: Minister
Jakarta (ANTARA) - Minister of Environment and Forestry, Siti Nurbaya Bakar, emphasized the need for adjustments to land inventory measurement methods in Indonesia to align with the European Union Deforestation Regulation (EUDR).
Her statement followed her participation in a meeting with President Joko Widodo (Jokowi) and Norwegian Climate and Environment Minister Andreas Bjelland Eriksen. The discussion centered on greenhouse gas emission reduction strategies within the forestry sector.
Bakar highlighted that despite Norway not being an EU member, their support is crucial for clarifying the regulation, particularly concerning Indonesian oil palm products.
"In implementing the EUDR, the European Union introduces tools for land and forest inventories. However, if the GFW (Global Forest Watch) method is used, errors are significant in Indonesia," she remarked.
Bakar assured that Indonesia actively addresses the regulation, which prohibits commodities and agricultural products derived from deforestation and forest degradation.
The EUDR also mandates that suppliers disclose coordinates for the land where their commodities and products originate. Antara News
--------
Indonesian Biofuel Producers Delay Investment Due to Lack of Legal Certainty
akarta, SAWIT INDONESIA – The Association of Indonesian Biofuel Producers (APROBI) has revealed problems that currently have an impact on business players' fear of investing in the renewable energy sector. The problem is that there has been an examination or audit by legal authorities (Attorney General's Office), especially in the last few years, of all stakeholders and until now there may not be any certainty or clarity in this case.
APROBI Secretary General Ernest Gunawan said the legal uncertainty had an impact on the government's plans to increase the blending presentation from B35 to B40 or even B50. He revealed that currently the installed capacity of biodiesel production has not yet increased.
"There are concerns among investors who want to invest in the renewable energy sector, because there is no legal certainty and it will cause business inconvenience, so they will give up their intention to invest in Indonesia," he said in a discussion held by the Indonesian Ombudsman, Monday (27/5/2024).
In his presentation, there were two problems in the biodiesel trade system. First, there is a view/assumption from several parties that biodiesel producers are big beneficiaries of BPDPKS funds that are not well targeted. This is because biodiesel producers receive BPDPKS funds for the price difference from HIP BBM paid to BBN Business Entities. Read more Sawit Indonesia
--------
Independent Palm Oil Farmers in Rokan Hulu Apply ISPO Certification
InfoSAWIT, ROHUL – Head of the Rokan Hulu District Government Plantation Service, CH. Agung Nugroho, expressed his full support for independent farmers who want to organize and obtain ISPO certification. According to him, ISPO certification is mandatory for oil palm planters, including independent farmers.
According to him, the existence of independent oil palm farmers in Rokan Hulu Regency continues to grow over time. On the other hand, the existence of oil palm plantations in various remote villages also encourages economic growth in the surrounding community. Therefore, according to him, a common forum is needed for independent farmers so that they can continue to develop in the future.
"The Rokan Hulu Regency Government supports independent farmers who join the SPKS farmer organization in obtaining ISPO certification," said CH. Agung Nugroho explained. Read more Info Sawit
--------
Palm oil: Egypt is Malaysia's key trade partner as govt sets sights on S. Africa, Middle East
KUALA LUMPUR: Egypt remains Malaysia's key trading partner as the government sets to expand its palm oil exports to South Africa and the Middle East.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said Egypt, home to roughly 105 million people, consumes about 1.2 million tonnes of palm oil annually.
He led a Malaysian delegation to Egypt and Turkiye for a working visit from May 27 to June 1.
In Cairo, he was received by Egypt's Supply and Internal Trade Minister Dr Ali El Moselhi.
"I am confident that Egypt's strategic geographical location would enhance our nations' economic prosperities.
"In our discussions, I emphasised to the Egyptian government regarding Malaysia's commitment to providing Egypt with a steady supply of high quality and sustainable palm oil certified by our locally-developed certification standard, MSPO.
"I look forward to further cooperating with His Excellency Dr Ali to ensure mutually beneficial trade relations," he said in a posting on X. New Straits Times
--------
Oiltek International wins RM94.8 mil worth of new contracts, bringing order book to record high
Catalist-listed Oiltek International HQU 1.37% has secured new contracts worth a total of RM94.8 million ($27.2 million) from Malaysia, Indonesia and Kenya.
The new contracts bring the group’s current order book to RM400.5 million, which is a new record high. The group’s order book will be fulfilled over the next 18 to 24 months barring any unforeseen circumstances.
The latest contracts will see the group construct, fabricate and install inside-battery-limits equipment and outside-battery-limits infrastructure for a new crude palm oil pretreatment plant, a new biodiesel plant, as well as a new downstream premium specialty animal feed product processing plant. The group will also design, fabricate, deliver, as well as test and commission crystallizer loops for a dry fractionation plant and a new 500MTD alkaline close loop vacuum system.
“These latest contract wins will help to build up our growth momentum, and once again highlight the market’s recognition of the attractiveness of our reliable, innovative, diversified and comprehensive range of process and engineering solutions. We aim to continue the momentum of contract acquisitions from last year in order to grow our project pipeline which will help to further boost our growth and returns to shareholders,” says Henry Yong Khai Weng, executive director and CEO of Oiltek. Read more The Edge Singapore
Indonesian President Jokowi Calls for Fair Treatment of Indonesian Palm Oil in Talks with Norway
Jakarta. President Joko "Jokowi" Widodo urged the Norwegian government to avoid discriminatory practices against Indonesian palm oil. This request was made during a meeting with Norway's Minister of Climate and Environment, Andreas Bjelland Erikson, at the Merdeka State Palace in Jakarta on Sunday.
Erikson was accompanied by Indonesia's Environment and Forestry Minister, Siti Nurbaya Bakar, and Finance Minister, Sri Mulyani.
"In the meeting, the President requested that Norway ensure accurate understanding and perceptions to prevent discrimination against palm oil," said Siti Nurbaya during a press conference at the Presidential Palace complex in Jakarta.
Indonesia is currently protesting the EU Deforestation-Free Regulation, which is seen as discriminatory towards palm oil.
"Indonesia is also scrutinizing the land inventory method, and we are continuously working on this," she added.
The discussion also covered the Memorandum of Understanding (MoU) between the Indonesian and Norwegian governments to achieve Indonesia's Forestry and Other Land Uses (FOLU) Net-Sink 2030 target.
"We discussed the MoU cooperation between Indonesia and Norway, with the main goal being the Indonesia Forestry and Other Land Uses. Concrete support or contributions were mentioned, such as a climate action achievement worth US$ 156 million, equivalent to 30.2 million tons of carbon," Siti Nurbaya continued.
Andreas Bjelland Erikson praised the Indonesian government's efforts to reduce deforestation by 90 percent in his response. This achievement has prompted Norway to rekindle its environmental cooperation with Indonesia.
"We proudly present our cooperation and collaboration with Indonesia due to its significant achievements in reducing deforestation over the past few years," said Erikson. Read more Jakarta Globe
--------
Deforestation success evidence of effective fund management: Minister
Jakarta (ANTARA) - Finance Minister Sri Mulyani Indrawati emphasized that Indonesia’s successful reduction in deforestation serves as evidence of effective management of environmental funds from abroad.
She explained that Norway, among other countries, closely monitors Indonesia's commitment to deforestation reduction.
She made the statement after attending a meeting between President Joko Widodo and Norwegian Climate and Environment Minister Andreas Bjelland Eriksen at the Presidential Palace in Jakarta on Sunday.
"The BPDLH (Indonesia Environment Fund) … has gained international trust as an institution capable of efficiently, accountably, and transparently delivering results-based funds," she said.
Indonesia and Norway collaborate through result-based contributions for Reducing Emissions from Deforestation and Forest Degradation (REDD+). A 20-million-ton reduction in carbon emissions during 2014–2016 was offset by REDD+ funding through the BPDLH.
However, disbursement of these funds hinges on Indonesia’s continued progress in deforestation reduction.
Operating under the Ministry of Finance, the BPDLH receives grant funds not only from the Norwegian government but also from the World Bank and other philanthropic institutions. Read more Antara News
--------
Indonesia must align land inventory method with EUDR: Minister
Jakarta (ANTARA) - Minister of Environment and Forestry, Siti Nurbaya Bakar, emphasized the need for adjustments to land inventory measurement methods in Indonesia to align with the European Union Deforestation Regulation (EUDR).
Her statement followed her participation in a meeting with President Joko Widodo (Jokowi) and Norwegian Climate and Environment Minister Andreas Bjelland Eriksen. The discussion centered on greenhouse gas emission reduction strategies within the forestry sector.
Bakar highlighted that despite Norway not being an EU member, their support is crucial for clarifying the regulation, particularly concerning Indonesian oil palm products.
"In implementing the EUDR, the European Union introduces tools for land and forest inventories. However, if the GFW (Global Forest Watch) method is used, errors are significant in Indonesia," she remarked.
Bakar assured that Indonesia actively addresses the regulation, which prohibits commodities and agricultural products derived from deforestation and forest degradation.
The EUDR also mandates that suppliers disclose coordinates for the land where their commodities and products originate. Antara News
--------
Indonesian Biofuel Producers Delay Investment Due to Lack of Legal Certainty
akarta, SAWIT INDONESIA – The Association of Indonesian Biofuel Producers (APROBI) has revealed problems that currently have an impact on business players' fear of investing in the renewable energy sector. The problem is that there has been an examination or audit by legal authorities (Attorney General's Office), especially in the last few years, of all stakeholders and until now there may not be any certainty or clarity in this case.
APROBI Secretary General Ernest Gunawan said the legal uncertainty had an impact on the government's plans to increase the blending presentation from B35 to B40 or even B50. He revealed that currently the installed capacity of biodiesel production has not yet increased.
"There are concerns among investors who want to invest in the renewable energy sector, because there is no legal certainty and it will cause business inconvenience, so they will give up their intention to invest in Indonesia," he said in a discussion held by the Indonesian Ombudsman, Monday (27/5/2024).
In his presentation, there were two problems in the biodiesel trade system. First, there is a view/assumption from several parties that biodiesel producers are big beneficiaries of BPDPKS funds that are not well targeted. This is because biodiesel producers receive BPDPKS funds for the price difference from HIP BBM paid to BBN Business Entities. Read more Sawit Indonesia
--------
Independent Palm Oil Farmers in Rokan Hulu Apply ISPO Certification
InfoSAWIT, ROHUL – Head of the Rokan Hulu District Government Plantation Service, CH. Agung Nugroho, expressed his full support for independent farmers who want to organize and obtain ISPO certification. According to him, ISPO certification is mandatory for oil palm planters, including independent farmers.
According to him, the existence of independent oil palm farmers in Rokan Hulu Regency continues to grow over time. On the other hand, the existence of oil palm plantations in various remote villages also encourages economic growth in the surrounding community. Therefore, according to him, a common forum is needed for independent farmers so that they can continue to develop in the future.
"The Rokan Hulu Regency Government supports independent farmers who join the SPKS farmer organization in obtaining ISPO certification," said CH. Agung Nugroho explained. Read more Info Sawit
--------
Palm oil: Egypt is Malaysia's key trade partner as govt sets sights on S. Africa, Middle East
KUALA LUMPUR: Egypt remains Malaysia's key trading partner as the government sets to expand its palm oil exports to South Africa and the Middle East.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said Egypt, home to roughly 105 million people, consumes about 1.2 million tonnes of palm oil annually.
He led a Malaysian delegation to Egypt and Turkiye for a working visit from May 27 to June 1.
In Cairo, he was received by Egypt's Supply and Internal Trade Minister Dr Ali El Moselhi.
"I am confident that Egypt's strategic geographical location would enhance our nations' economic prosperities.
"In our discussions, I emphasised to the Egyptian government regarding Malaysia's commitment to providing Egypt with a steady supply of high quality and sustainable palm oil certified by our locally-developed certification standard, MSPO.
"I look forward to further cooperating with His Excellency Dr Ali to ensure mutually beneficial trade relations," he said in a posting on X. New Straits Times
--------
Oiltek International wins RM94.8 mil worth of new contracts, bringing order book to record high
Catalist-listed Oiltek International HQU 1.37% has secured new contracts worth a total of RM94.8 million ($27.2 million) from Malaysia, Indonesia and Kenya.
The new contracts bring the group’s current order book to RM400.5 million, which is a new record high. The group’s order book will be fulfilled over the next 18 to 24 months barring any unforeseen circumstances.
The latest contracts will see the group construct, fabricate and install inside-battery-limits equipment and outside-battery-limits infrastructure for a new crude palm oil pretreatment plant, a new biodiesel plant, as well as a new downstream premium specialty animal feed product processing plant. The group will also design, fabricate, deliver, as well as test and commission crystallizer loops for a dry fractionation plant and a new 500MTD alkaline close loop vacuum system.
“These latest contract wins will help to build up our growth momentum, and once again highlight the market’s recognition of the attractiveness of our reliable, innovative, diversified and comprehensive range of process and engineering solutions. We aim to continue the momentum of contract acquisitions from last year in order to grow our project pipeline which will help to further boost our growth and returns to shareholders,” says Henry Yong Khai Weng, executive director and CEO of Oiltek. Read more The Edge Singapore
|
|
|
June 02, 2024
The High Potential of Palm Oil for Fuel and Tips for Boosting Palm Oil Production
InfoSAWIT, JAKARTA – Biodiesel expert from the Bandung Institute of Technology (ITB), Tatang Hernas Soerawidjaja, revealed Indonesia's great potential in developing vegetable oil, mainly sourced from palm oil.
Including that palm oil has a balance of saturated and unsaturated fats, which is a priority for palm oil, as well as the use of technology in processing palm oil.
Indonesia, as the world leader in palm oil production, has a great opportunity to advance the vegetable oil industry. However, Tatang Hernas emphasized the need for technological progress to optimize this potential.
ALSO READ: West Papua Targets Palm Oil Downstreaming, Strategic Step Towards Food Independence
Tatang said, world awareness is about the importance of fatty acids as an alternative to petroleum in the fuel industry, as well as the potential of biofuels from other trees such as rubber seeds.
He concluded that by exploiting the potential of palm oil and other vegetable oil sources, Indonesia has a great opportunity to become a leader in the production of vegetable oil-based energy sources as a substitute for petroleum. Read more Info Sawit
---------
West Papua can set example in palm oil downstreaming: Minister
Jakarta (ANTARA) - Agriculture Minister Andi Amran Sulaiman highlighted the immense potential of Manokwari district in West Papua as a pioneer in palm oil downstream development.
He said that approximately 100–200 hectares of land are necessary for the downstream process.
"We can refine palm oil into cooking oil, thereby reducing our reliance on imports," he stated in a press release issued on Saturday.
With downstreaming, Indonesia will not depend on global palm oil prices. The country can independently manage its production and downstream activities, allowing processed products to find markets within the country.
“In the event that world palm oil prices decline, we can still market our products domestically,” he emphasized.
Amran also underscored the need for regional governments and farmers to maintain oil palm plantations to sustain production.
His ministry has provided replanting assistance for 2,300 hectares, with the possibility of further expansion.
"We already controlled the PSR (people's palm oil rejuvenation) as well," he disclosed.
Such efforts are expected to lead the Papua region toward food self-sufficiency, encompassing both oil palm and other food production. Read more Antara News
---------
The Reality of ESG: Palm Oil Corporate Interests in West Sulawesi, Indonesia
In recent years, the palm oil industry in West Sulawesi has become an issue relevant to the Environment, Social, and Governance (ESG) discussion.
KRISMAN HERIAMSAL
In recent years, the palm oil industry in West Sulawesi has become an issue relevant to the Environment, Social, and Governance (ESG) discussion. Behind promising economic growth and investment, there are serious social and environmental problems. ESG principles, which should be a reference for a corporation’s operations, are not very relevant to the activities of the palm oil corporation in West Sulawesi. The practice of massive deforestation to clear land for plantations has led to a reduction in forest area, threatening wildlife habitat, and disrupting the balance of the ecosystem. On the other hand, local communities living around companies often experience marginalization, loss of location, and poor working conditions.
It is important to note that ESG (Environmental, Social, and Governance) is a framework used to assess the sustainable performance of a corporation by considering environmental, social, and governance aspects (Li et al., 2021). In this context, ESG helps various parties such as investors, stakeholders, and the general public to evaluate the corporation’s sustainable performance and its impact on the environment, society, and corporate governance itself. In addition, ESG principles also encourage corporations to integrate environmental, social, and governance considerations into company operations and strategic decision-making.
Palm Oil Industry in West Sulawesi
West Sulawesi is one of the regions in Indonesia that has a large area of oil palm plantations. Data from the Central Statistics Agency of West Sulawesi in 2023 shows that the area of oil palm plantations in West Sulawesi reached 108,443.89 hectares in 2022. Many oil palm corporations are operating in West Sulawesi including, PT Astra Agro Lestari (AAL) which has five subsidiaries namely PT Pasangkayu, PT Mamuang, PT Letawa, PT Lestari Tani Teladan (LTT), PT Surya Raya Lestari I, PT Surya Lestari II, and PT Badra Sukses. In addition, some companies are not part of the Astra group, namely PT Toscano, PT Prima Nusa Global Lestari, PT Trinity Palmas Plantation, PT Wahana Karya Sejahtera Mandiri, PT Manakarra Unggul Lestari (MUL), PT Tunas Fajar Perkasa (TFP), PT Surya Raya Lestari (SRL), and so on. These companies are spread across three districts in West Sulawesi, namely Pasangkayu, Central Mamuju, and Mamuju (Daniel, 2024).
However, palm oil corporations in West Sulawesi also face challenges related to environmental conservation, social responsibility, and corporate governance practices. The reason is that the efforts of oil palm corporations to obtain maximum profits often make them ignore ESG principles, which ultimately sacrifice human rights, environmental preservation, and sustainable development. This can be seen from the increasing cases of environmental damage and human rights violations committed by several oil palm corporations in West Sulawesi in recent years. Read more Modern Diplomacy
---------
Beyond Spice Scare: Health Risks Of Glycidol & 3-MCPD In Cooking Oils
Satyanarayan Mohapatra
The recent recall of spice mixes of major brands like Everest and MDH due to ethylene oxide contamination has rightly triggered public alarm. However, as a food safety professional, I want to draw your attention to a lesser-known but equally concerning issue: Presence of glycidol esters (GE) and 3-monochloropropane-1,2-diol (3-MCPD) in cooking oils. These contaminants, often overlooked, pose potential health risks, particularly for vulnerable groups like children and the elderly.
GE and 3-MCPD are process contaminants formed during refining of edible oils. They are predominantly found in refined palm oil and other oils like olive, coconut, and sunflower. Codex Alimentarius Commission (CODEX), an international food standards body, classifies these substances as potential carcinogens.
The Silent Threat to Health
The dangers of GE and 3-MCPD lie in their breakdown products, glycidol and 3-MCPD. Glycidol, a genotoxic carcinogen, can damage our DNA, the genetic blueprint of our cells, potentially leading to cancer. Studies on 3-MCPD have raised concerns about its impact on kidney function and reproductive health, particularly in animal models.
While the exact risks to humans are still being researched, European Food Safety Authority (EFSA) has expressed concern over the potential harm, especially for children and high consumers of these oils. Children, with their developing bodies, are particularly vulnerable to the adverse effects of toxins. Similarly, the elderly, often with compromised health, may be more susceptible to the detrimental impact of these contaminants on their kidneys and overall well being.
Understanding the Limits Read more Odisha Bytes
The High Potential of Palm Oil for Fuel and Tips for Boosting Palm Oil Production
InfoSAWIT, JAKARTA – Biodiesel expert from the Bandung Institute of Technology (ITB), Tatang Hernas Soerawidjaja, revealed Indonesia's great potential in developing vegetable oil, mainly sourced from palm oil.
Including that palm oil has a balance of saturated and unsaturated fats, which is a priority for palm oil, as well as the use of technology in processing palm oil.
Indonesia, as the world leader in palm oil production, has a great opportunity to advance the vegetable oil industry. However, Tatang Hernas emphasized the need for technological progress to optimize this potential.
ALSO READ: West Papua Targets Palm Oil Downstreaming, Strategic Step Towards Food Independence
Tatang said, world awareness is about the importance of fatty acids as an alternative to petroleum in the fuel industry, as well as the potential of biofuels from other trees such as rubber seeds.
He concluded that by exploiting the potential of palm oil and other vegetable oil sources, Indonesia has a great opportunity to become a leader in the production of vegetable oil-based energy sources as a substitute for petroleum. Read more Info Sawit
---------
West Papua can set example in palm oil downstreaming: Minister
Jakarta (ANTARA) - Agriculture Minister Andi Amran Sulaiman highlighted the immense potential of Manokwari district in West Papua as a pioneer in palm oil downstream development.
He said that approximately 100–200 hectares of land are necessary for the downstream process.
"We can refine palm oil into cooking oil, thereby reducing our reliance on imports," he stated in a press release issued on Saturday.
With downstreaming, Indonesia will not depend on global palm oil prices. The country can independently manage its production and downstream activities, allowing processed products to find markets within the country.
“In the event that world palm oil prices decline, we can still market our products domestically,” he emphasized.
Amran also underscored the need for regional governments and farmers to maintain oil palm plantations to sustain production.
His ministry has provided replanting assistance for 2,300 hectares, with the possibility of further expansion.
"We already controlled the PSR (people's palm oil rejuvenation) as well," he disclosed.
Such efforts are expected to lead the Papua region toward food self-sufficiency, encompassing both oil palm and other food production. Read more Antara News
---------
The Reality of ESG: Palm Oil Corporate Interests in West Sulawesi, Indonesia
In recent years, the palm oil industry in West Sulawesi has become an issue relevant to the Environment, Social, and Governance (ESG) discussion.
KRISMAN HERIAMSAL
In recent years, the palm oil industry in West Sulawesi has become an issue relevant to the Environment, Social, and Governance (ESG) discussion. Behind promising economic growth and investment, there are serious social and environmental problems. ESG principles, which should be a reference for a corporation’s operations, are not very relevant to the activities of the palm oil corporation in West Sulawesi. The practice of massive deforestation to clear land for plantations has led to a reduction in forest area, threatening wildlife habitat, and disrupting the balance of the ecosystem. On the other hand, local communities living around companies often experience marginalization, loss of location, and poor working conditions.
It is important to note that ESG (Environmental, Social, and Governance) is a framework used to assess the sustainable performance of a corporation by considering environmental, social, and governance aspects (Li et al., 2021). In this context, ESG helps various parties such as investors, stakeholders, and the general public to evaluate the corporation’s sustainable performance and its impact on the environment, society, and corporate governance itself. In addition, ESG principles also encourage corporations to integrate environmental, social, and governance considerations into company operations and strategic decision-making.
Palm Oil Industry in West Sulawesi
West Sulawesi is one of the regions in Indonesia that has a large area of oil palm plantations. Data from the Central Statistics Agency of West Sulawesi in 2023 shows that the area of oil palm plantations in West Sulawesi reached 108,443.89 hectares in 2022. Many oil palm corporations are operating in West Sulawesi including, PT Astra Agro Lestari (AAL) which has five subsidiaries namely PT Pasangkayu, PT Mamuang, PT Letawa, PT Lestari Tani Teladan (LTT), PT Surya Raya Lestari I, PT Surya Lestari II, and PT Badra Sukses. In addition, some companies are not part of the Astra group, namely PT Toscano, PT Prima Nusa Global Lestari, PT Trinity Palmas Plantation, PT Wahana Karya Sejahtera Mandiri, PT Manakarra Unggul Lestari (MUL), PT Tunas Fajar Perkasa (TFP), PT Surya Raya Lestari (SRL), and so on. These companies are spread across three districts in West Sulawesi, namely Pasangkayu, Central Mamuju, and Mamuju (Daniel, 2024).
However, palm oil corporations in West Sulawesi also face challenges related to environmental conservation, social responsibility, and corporate governance practices. The reason is that the efforts of oil palm corporations to obtain maximum profits often make them ignore ESG principles, which ultimately sacrifice human rights, environmental preservation, and sustainable development. This can be seen from the increasing cases of environmental damage and human rights violations committed by several oil palm corporations in West Sulawesi in recent years. Read more Modern Diplomacy
---------
Beyond Spice Scare: Health Risks Of Glycidol & 3-MCPD In Cooking Oils
Satyanarayan Mohapatra
The recent recall of spice mixes of major brands like Everest and MDH due to ethylene oxide contamination has rightly triggered public alarm. However, as a food safety professional, I want to draw your attention to a lesser-known but equally concerning issue: Presence of glycidol esters (GE) and 3-monochloropropane-1,2-diol (3-MCPD) in cooking oils. These contaminants, often overlooked, pose potential health risks, particularly for vulnerable groups like children and the elderly.
GE and 3-MCPD are process contaminants formed during refining of edible oils. They are predominantly found in refined palm oil and other oils like olive, coconut, and sunflower. Codex Alimentarius Commission (CODEX), an international food standards body, classifies these substances as potential carcinogens.
The Silent Threat to Health
The dangers of GE and 3-MCPD lie in their breakdown products, glycidol and 3-MCPD. Glycidol, a genotoxic carcinogen, can damage our DNA, the genetic blueprint of our cells, potentially leading to cancer. Studies on 3-MCPD have raised concerns about its impact on kidney function and reproductive health, particularly in animal models.
While the exact risks to humans are still being researched, European Food Safety Authority (EFSA) has expressed concern over the potential harm, especially for children and high consumers of these oils. Children, with their developing bodies, are particularly vulnerable to the adverse effects of toxins. Similarly, the elderly, often with compromised health, may be more susceptible to the detrimental impact of these contaminants on their kidneys and overall well being.
Understanding the Limits Read more Odisha Bytes
|
|
|
June 01, 2024
France, Germany urge tougher EU checks on biofuel imports in fraud probe
BRUSSELS (Reuters) – France and Germany have called on the European Union to adopt stricter checks on overseas suppliers of biofuel as the EU investigates allegations of fraud in imports from Asia.
The European biodiesel industry has complained of a surge in imports from China which it believes involve supplies declared as made with recycled oil and fat but actually produced with cheaper and less sustainable virgin oil.
In a note submitted to a meeting of EU energy ministers on Thursday, France, Germany and the Netherlands said it was necessary to tighten checks on biofuel production sites “wherever they are located in the world”.
Certification of foreign biofuel as sustainable should be “rejected in case of refusal of access to the premises,” the note said.
An EU diplomat said no objections to the proposal were raised at Thursday’s meeting but no action was taken either, with the matter left with the European Commission to follow up.
The Commission did not immediately respond to a request for comment.
The Commission is conducting several probes into biofuel imports, including one on biodiesel from Indonesia potentially circumventing EU duties and another on possible dumping of low-priced biodiesel from China. Read more Swiss Info
---------
IEU-CEPA negotiations set to conclude before October: Minister
Trade Minister Zulkifli Hasan stated that the Indonesian Government seeks to reach a conclusion to the Indonesia-European Union Comprehensive Economic Partnership Agree
ment (IEU-CEPA) negotiations prior to the end of the government's tenure on October 20.
"Hopefully, the IEU-CEPA will be completed before the incumbent government concludes its tenure in October," he remarked in Jakarta on Friday.
The minister noted that the next round of negotiations is expected to be launched in June.
"I will push for the launch (of the next round) to take place here (in Indonesia). I have asked Mr. Djatmiko, the Trade Ministry's Director General of International Trade Negotiations, to complete the agreement before October 20," he emphasized.
The IEU-CEPA is expected to serve as an instrument for broadening trade activities between Indonesia and the European Union, which, in turn, are expected to boost the growth of the two parties' real gross domestic product (GDP).
A study conducted by the Centre for Strategic and International Studies showed that the IEU-CEPA has the potential to shoot up real GDP growth by 0.10 percent and raise the country's income effect by US$2.8 billion.
Moreover, Indonesia's exports to the EU are likely to increase by 57.76 percent, according to the study. Read more Antara News
---------
China takes nascent steps towards sourcing sustainable farm products
CHINA’S flagship food group COFCO International landed its first cargo of deforestation-free soybeans for domestic use on Friday (May 31), marking what industry players say is a milestone for a country that has prioritised price over sustainability in its farm imports.
China is a top buyer of agricultural goods, including soybeans and beef, which are drivers of global deforestation, but has lagged western peers in demanding that produce including palm oil not be sourced from land linked to deforestation or conversion of natural habitats.
That is slowly changing, with state-run COFCO International as well as China Mengniu Dairy Company and Inner Mongolia Yili Industrial Group in the past year asking suppliers and consultants for sustainable soybeans, traders and sustainability experts told Reuters.
The volumes are tiny in the context of China’s overall buying but the implications of the greener sourcing are significant, given China’s voracious appetite for agricultural goods, even as it seeks to cut its dependence on imports.
The participation of COFCO, which brought in Friday’s cargo at Tianjin port for Mengniu’s subsidiary Modern Farming Group, also sends a signal to other buyers of Beijing’s intent.
“There is a noticeable shift in buying trends among Chinese buyers towards more sustainable and environmentally friendly products,” a Singapore-based broker said, declining to be named due to business confidentiality. Business Times
---------
Jurisdiction Scale Certification for ISPO is considered cheaper for palm oil farmers
InfoSAWIT, JAKARTA – Palm oil certification has become an important focus in efforts to realize more sustainable agricultural practices. However, even though various certification schemes have been implemented, there are still several weaknesses that need to be considered to ensure their effectiveness.
No less important is the issue of fairness in certification accessibility. High certification costs are often an obstacle for small oil palm farmers to participate in sustainability programs.
Experience from the field shows that certification costs can reach levels that are unaffordable for some farmers. This raises questions about equal access to sustainability certification and the need for efforts to keep costs affordable for all parties involved.
As stated by Bernadinus Steni Sugiarto from the Kaleka Foundation, if the certification process was carried out involving less than 500 farmers, the certification costs would be expensive, reaching more than US$ 170 per farmer. Meanwhile, if the scale of the certification process is developed to more than 2000 palm oil farmers, the cost of sustainable palm oil certification can be reduced to a minimum of less than US$ 50 per farmer. Read original in Bahasa Infosawit
---------
Indigenous groups warn of continued deforestation in Malaysia, as EU law nears
Representatives of Malaysia’s indigenous peoples, along with climate and human rights NGOs, urged the European Commission to involve civil society in discussions about the EU’s anti-deforestation regulation (EUDR) during a visit to Brussels this week.
The indigenous representatives, visiting with researchers from Human Rights Watch (HRW), requested involvement in ongoing talks with the EU, Malaysian, and Indonesian authorities to iron out the details of the regulation’s implementation.
The EUDR covers several everyday food products—including cattle, cocoa, coffee, palm oil, and derived products like chocolate and leather—and requires producing companies to prove, using mapping and geolocation data, that they have not contributed to deforestation after 2020.
The rules, set to be enforced in January 2025, could significantly impact Malaysian farmers as the country is one of the world’s largest palm oil producers, alongside Indonesia. The palm oil boom since the 1960s has destroyed millions of hectares of forests and displaced indigenous peoples. Read more Euractiv
France, Germany urge tougher EU checks on biofuel imports in fraud probe
BRUSSELS (Reuters) – France and Germany have called on the European Union to adopt stricter checks on overseas suppliers of biofuel as the EU investigates allegations of fraud in imports from Asia.
The European biodiesel industry has complained of a surge in imports from China which it believes involve supplies declared as made with recycled oil and fat but actually produced with cheaper and less sustainable virgin oil.
In a note submitted to a meeting of EU energy ministers on Thursday, France, Germany and the Netherlands said it was necessary to tighten checks on biofuel production sites “wherever they are located in the world”.
Certification of foreign biofuel as sustainable should be “rejected in case of refusal of access to the premises,” the note said.
An EU diplomat said no objections to the proposal were raised at Thursday’s meeting but no action was taken either, with the matter left with the European Commission to follow up.
The Commission did not immediately respond to a request for comment.
The Commission is conducting several probes into biofuel imports, including one on biodiesel from Indonesia potentially circumventing EU duties and another on possible dumping of low-priced biodiesel from China. Read more Swiss Info
---------
IEU-CEPA negotiations set to conclude before October: Minister
Trade Minister Zulkifli Hasan stated that the Indonesian Government seeks to reach a conclusion to the Indonesia-European Union Comprehensive Economic Partnership Agree
ment (IEU-CEPA) negotiations prior to the end of the government's tenure on October 20.
"Hopefully, the IEU-CEPA will be completed before the incumbent government concludes its tenure in October," he remarked in Jakarta on Friday.
The minister noted that the next round of negotiations is expected to be launched in June.
"I will push for the launch (of the next round) to take place here (in Indonesia). I have asked Mr. Djatmiko, the Trade Ministry's Director General of International Trade Negotiations, to complete the agreement before October 20," he emphasized.
The IEU-CEPA is expected to serve as an instrument for broadening trade activities between Indonesia and the European Union, which, in turn, are expected to boost the growth of the two parties' real gross domestic product (GDP).
A study conducted by the Centre for Strategic and International Studies showed that the IEU-CEPA has the potential to shoot up real GDP growth by 0.10 percent and raise the country's income effect by US$2.8 billion.
Moreover, Indonesia's exports to the EU are likely to increase by 57.76 percent, according to the study. Read more Antara News
---------
China takes nascent steps towards sourcing sustainable farm products
CHINA’S flagship food group COFCO International landed its first cargo of deforestation-free soybeans for domestic use on Friday (May 31), marking what industry players say is a milestone for a country that has prioritised price over sustainability in its farm imports.
China is a top buyer of agricultural goods, including soybeans and beef, which are drivers of global deforestation, but has lagged western peers in demanding that produce including palm oil not be sourced from land linked to deforestation or conversion of natural habitats.
That is slowly changing, with state-run COFCO International as well as China Mengniu Dairy Company and Inner Mongolia Yili Industrial Group in the past year asking suppliers and consultants for sustainable soybeans, traders and sustainability experts told Reuters.
The volumes are tiny in the context of China’s overall buying but the implications of the greener sourcing are significant, given China’s voracious appetite for agricultural goods, even as it seeks to cut its dependence on imports.
The participation of COFCO, which brought in Friday’s cargo at Tianjin port for Mengniu’s subsidiary Modern Farming Group, also sends a signal to other buyers of Beijing’s intent.
“There is a noticeable shift in buying trends among Chinese buyers towards more sustainable and environmentally friendly products,” a Singapore-based broker said, declining to be named due to business confidentiality. Business Times
---------
Jurisdiction Scale Certification for ISPO is considered cheaper for palm oil farmers
InfoSAWIT, JAKARTA – Palm oil certification has become an important focus in efforts to realize more sustainable agricultural practices. However, even though various certification schemes have been implemented, there are still several weaknesses that need to be considered to ensure their effectiveness.
No less important is the issue of fairness in certification accessibility. High certification costs are often an obstacle for small oil palm farmers to participate in sustainability programs.
Experience from the field shows that certification costs can reach levels that are unaffordable for some farmers. This raises questions about equal access to sustainability certification and the need for efforts to keep costs affordable for all parties involved.
As stated by Bernadinus Steni Sugiarto from the Kaleka Foundation, if the certification process was carried out involving less than 500 farmers, the certification costs would be expensive, reaching more than US$ 170 per farmer. Meanwhile, if the scale of the certification process is developed to more than 2000 palm oil farmers, the cost of sustainable palm oil certification can be reduced to a minimum of less than US$ 50 per farmer. Read original in Bahasa Infosawit
---------
Indigenous groups warn of continued deforestation in Malaysia, as EU law nears
Representatives of Malaysia’s indigenous peoples, along with climate and human rights NGOs, urged the European Commission to involve civil society in discussions about the EU’s anti-deforestation regulation (EUDR) during a visit to Brussels this week.
The indigenous representatives, visiting with researchers from Human Rights Watch (HRW), requested involvement in ongoing talks with the EU, Malaysian, and Indonesian authorities to iron out the details of the regulation’s implementation.
The EUDR covers several everyday food products—including cattle, cocoa, coffee, palm oil, and derived products like chocolate and leather—and requires producing companies to prove, using mapping and geolocation data, that they have not contributed to deforestation after 2020.
The rules, set to be enforced in January 2025, could significantly impact Malaysian farmers as the country is one of the world’s largest palm oil producers, alongside Indonesia. The palm oil boom since the 1960s has destroyed millions of hectares of forests and displaced indigenous peoples. Read more Euractiv
|
|
|
CSPO Watch June 2024