Headline News on Palm Oil. November 2021
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Read curated news that impacts the global palm oil industry.
CSPO Watch News. Making it easy for you to follow the palm oil industry
CSPO Watch News. Making it easy for you to follow the palm oil industry
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Philippines - DOE amenable to use of palm oil as fuel mix
The Federation of Philippine Industries (FPI) indicated that oil companies and end-users will soon have broader choice when it comes to biofuels with the use of palm oil in the fuel mix with diesel products. With the DOE approval, it is hoped that motorists will eventually have cheaper or more cost-competitive option when they fill their vehicles at the gas pumps. “Motorists using biodiesel could soon find relief from the rising oil prices after the DOE agreed to adopt the proposal of FPI…to allow the use of palm oil in the country’s fuel mix,” Arranza said. The blend of biofuel to diesel is still at the level of 2.0 percent; but there is already a long-standing proposal to increase this to 5.0 percent this year although not much progress has been achieved so far. Arranza qualified “the use of palm oil instead of coconut oil in the diesel mix will result in multiple benefits that can be felt by motorists, local industries and farmers.” In FPI’s view, “motorists will see lower diesel prices because palm oil is always cheaper by around $300 to $500 than coconut oil per ton in the world market.” ManilaBulletin |
India - Cargill acquires edible oil refinery in Andhra Pradesh
Food major Cargill has acquired an edible oil refinery in Nellore in Andhra Pradesh to expand its footprint in Southern India and strengthen its existing supply chain in the country. The company said this will entail total investments of about $35 million (₹250 crore-₹270 crore) to acquire, upgrade the facility as well as expand the edible oil production capacity significantly at the facility. The newly acquired refinery will expand Cargill’s capacity to supply refined palm oil, palm olein, vanaspati (hydrogenated vegetable oil) and sunflower oil and other value-added products. The facility located at Krishnapatnam Port is expected to be fully operational by May next year. The company’s move comes at a time when the consumers are increasingly shifting towards organised brands post the pandemic. TheHinduBusinessLine |
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Malaysia's palm oil giant FGV says migrant workers to enter by end-Q1 2022
KUALA LUMPUR, Nov 30 (Reuters) - Malaysia's palm oil planters are preparing to import an army of migrant workers to boost output hammered by the coronavirus pandemic, but the nation's largest producer said workers are only expected to start arriving by the end of March 2022. Border closures and a ban on the entry of migrant workers since last year have contributed to an acute labour shortage on plantations -- where 78% of workers are from countries such as Indonesia, India and Bangladesh -- while many have left Malaysia. The government said in September it would prioritise the return of 32,000 workers for the plantation sector to ease the labour crunch that has clipped output in the world's second largest palm oil producer. Malaysia's Human Resources Ministry told Reuters in October workers would start arriving at the end of this year. read more FGV Holdings (FGVH.KL), which is currently operating at 72% workforce strength, told Reuters it expects the first batch of the 7,000 workers it plans to hire to arrive by the end of the first quarter of 2022 due to additional COVID-19 processes. Reuters |
Indian Prime Minister’s decision to repeal controversial farm laws after year of protests hits edible oil sector’s plans
The announcement by India’s Prime Minister Narendra Modi to repeal three controversial farm laws could hit the edible oil industry’s National Mission on Oilseeds, The Economic Times reported on 23 November. In a huge victory for India’s farmers, who had fought hard for the repeal of what they called the “black laws”, the prime minister announced in an address on 19 November that “we have taken the laws back”, according to a report by The Guardian. Modi said he would start the constitutional process to repeal all the three laws in the parliament session that was due to begin at the end of November. While Modi remained adamant in his speech that the laws were necessary reforms, he acknowledged that they were unfeasible given the strong opposition from farmers, The Guardian wrote. However, the announcement was not welcomed by the edible oil sector as it left a question mark over its National Mission on Oilseeds, The Economic Times wrote. The programme is aimed at increasing local production of mustard, groundnut and soyabeans to reduce dependence on imported edible oils and decrease the import bill, according to the report. While the farm laws had been expected to encourage farmers to switch from grain to oilseed farming, The Economic Times wrote, their repeal might mean farmers would continue growing wheat and other cereal crops and the government would still be forced to purchase the grains at the minimum support price (MSP). OFI |
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Singapore - Apical Collaborates with Singapore Agri-Food Innovation Lab (SAIL) to Advance Innovation and Sustainability in Agri-food Sector
Sun, November 28, 2021, 11:10 PM Jointly Established by NTU Singapore and Enterprise Singapore SINGAPORE, Nov. 29, 2021 /PRNewswire/ -- Apical Group, a leading global palm oil processor and a member of the RGE group of resource-based companies, has been named one of the agri-commodity corporate partners of the newly launched Singapore Agri-Food Innovation Lab (SAIL) by Nanyang Technological University (NTU Singapore), in partnership with Enterprise Singapore (ESG). Officially launched on 24 November 2021 by Mr. Gan Kim Yong, Minister for Trade and Industry, and NTU Singapore President Professor Subra Suresh, SAIL will serve as a platform that engages and seeds partnerships across the food value chain. It will work with corporate partners to curate industry-wide challenges and drive collaboration between demand drivers and solution providers. Yahoo |
Tanzania At 60 - Agriculture Remains Key Economic Growth
THE government has said the country is stable in food security, as the Ministry of Agriculture insists it has recorded commendable achievements during 60 years of independence. Minister for Agriculture, Prof Adolf Mkenda gave the assurance yesterday, when presenting the success and challenges during 60 years of independence, so far. Some 80 per cent of Tanzanians depend on agriculture for their livelihood. The sector contributes to about 27 per cent of the country's GDP and about 24 per cent to the total exports. Consequently, the National Development Vision 2025, the main national development strategy in Tanzania, places considerable emphasis on the sector and envisages that by 2025, the economy will have been transformed from a low productivity agricultural economy to a semi-industrialised one led by modernised and highly productive agricultural activities that are integrated with industrial and service activities in urban and rural areas. AllAfrica |
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Philippines - DOE reviews palm oil use in fuel mix
MANILA, Philippines — The Department of Energy (DOE) said it is still studying a proposal to use palm oil in biofuel mix and that it required the Federation of Philippine Industries (FPI) to submit additional data. According to the FPI, the DOE has committed to elevate the matter to the National Biofuels Board (NBB), the body tasked to study and implement the biodiesel law. Currently, the country’s biodiesel is a blend of diesel fuel and coco methyl ester (CME), a derivative of coconut oil. FPI chairman Jesus Arranza said the possible use of palm oil for biodiesel production was proposed amid skyrocketing fuel prices. He said the use of palm oil instead of coconut oil in the diesel mix would result in multiple benefits that can be felt by motorists, local industries and farmers. For instance, Arranza said motorists will see lower diesel prices because palm oil is always cheaper by around $300 to $500 than coconut oil per ton in the world market. The volume of coconut oil that will be released or freed from the diesel mix, meanwhile, can now be utilized for higher-value products, including virgin coconut oil, which has been proven to be effective against enveloped viruses like the COVID-19 and as a treatment for Alzheimer’s disease. “Diesel is the one being used in public transport and in the delivery of goods, so it affects the masses. The use of the cheaper palm oil therefore will serve as a permanent solution instead of the government having to periodically adjust excise taxes just to cushion the impact of higher crude prices. Philstar |
Malaysia - Regenerative agri: Towards smart, sustainable farming
KOTA KINABALU: Verde Resources Inc. (OTCQB: VRDR) of the United States, has introduced two innovative “Regenerative Agriculture” products for smart and sustainable farming which promises to increase yields, healthier crop growth, and carbon sequestration to help mitigate climate change. The two products are the Verde Enriched BioChar and Verde Wood Vinegar. Verde President Balakrishnan Muthu said the Verde Enriched BioChar is a resourceful soil amendment that improves soil pH, reduces erosion, improves water retention, provides a host for microbial activity and improves crop size. “It improves soil pH and structure, reduce erosion, improve water retention, host microbial activity, and, most importantly, has the ability to sequester large amounts of carbon,” he said in a statement, Friday. The Verde Wood Vinegar, meanwhile, is a breakthrough organic pesticide and fertiliser that also improves soil quality, which helps eliminate pests and assists in healthy growth of plants and crops. “The Verde Enriched BioChar and Verde Wood Vinegar, when combined, revitalises soil for increased productivity, better biological activity, and provides moisture and nutrient retention. “They also enhance soil resulting in carbon sequestration, microbial biomass and provides a conducive environment for mycorrhizae. It’s a much more organic and economical way to improve cropland while reducing dependency on agriculture chemicals,” he said. DailyExpress |
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Indonesia takes initiative to promote Ghana’s private sector growth, bilateral trade
The Indonesian government has commenced implementing an initiative aimed at promoting the growth of Ghana’s private sector to enhance bilateral trade between both countries. The Asian country as part of the initiative, would provide machinery, technological support and expertise in agriculture, industry, oil exploration among others, to players in the private sector. Through the Indonesian Embassy in West Africa headquartered in Lagos, Nigeria, a Memorandum of Understanding would be signed between investors and industry. The Indonesian Honorary Consulate in Ghana led a delegation to explore opportunities in the agricultural sector in the Central Tongu District of the Volta Region and partner with identified farmers towards promoting agribusiness. The DCE, Thomas Moore Zonyrah, made known the varied resources and agricultural potential of the district and assured of the Assembly’s utmost support to the initiate, including helping the investors to acquire farmlands among others. MyJoyOnline |
Nigeria - Obaseki Engages World Leaders On Edo’s Land Conservation Strategy
Edo State governor, Godwin Obaseki, has said that his administration is focused on integrating palm oil production with forest management, using integrated land use planning to systematically support better production of oil palm and conserve land in the state. Obaseki said this at the recently concluded United Nations climate change summit, also known as Conference of the Parties (COP26). The Edo governor, who was the only sub-national leader/state governor from Nigeria to address the COP Summit on curbing greenhouse gas emissions in Nigeria through diversification of the economy to regulated oil palm production, told world leaders that his administration has made remarkable progress in the sustainable development of oil palm in the state. “We have focused our efforts on the importance of integrating palm oil production with forest management, using integrated land use planning to systematically support better production of oil palm and land conservation,” he told the elite audience at the SEC Centre in Glasgow, Scotland, United Kingdom. Obaseki explained that in pursuit of forest protection, a forest cover analysis was carried out in 2018 by his administration. LeadershipNG |
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Booming Indonesia Stock Market Seen Trumping Peers Next Year
(Bloomberg) — Rising commodity prices and easing border restrictions will probably fuel economic growth that helps Indonesia’s key stock index extend its record to lead regional gains next year, analysts predict. “Indonesia is setting up for a strong 2022 because it is approaching vaccination thresholds that facilitate full re-opening and faster growth momentum,” said Alan Richardson, a fund manager at Samsung Asset Management in Hong Kong. Easing restrictions as regional coronavirus infections abate along with high prices of the commodities Indonesia exports — palm oil, crude oil and coal — have attracted inflows into the nation’s stocks and bonds. That’s prompted upgrades of its equity market this month by the likes of Goldman Sachs Group Inc., while Morgan Stanley and BlackRock Inc. also rate it as overweight. Adding to Indonesia’s appeal are improving consumer confidence and automotive sales that will also contribute to a “significant” acceleration in economic growth next year, Credit Suisse Group AG strategists wrote in a Nov. 25 report. FinancialPost |
Indonesia to launch joint ventures with Pakistani investors
FAISALABAD: Indonesia will launch joint ventures in collaboration with local investors to ensure trade balance between Indonesia and Pakistan. It was said by Adam M Tugio, Ambassador of the Republic of Indonesia, while addressing a seminar on ‘Sustainable Vegetable Oils: Opportunities for Increased Healthy Food & Two-way Trade’ jointly organised by the Embassy of the Republic of Indonesia and University of the Agriculture Faisalabad here on Friday. Adam M Tugio said that both countries had inked a PTA (Preferential Treatment Agreement) for the promotion of bilateral trade of agriculture commodities at reduced tariffs. He said that Indonesia imports Kinnow and mangoes in lieu of its palm oil. However, the volume of import was being enhanced to ensure balance between the imports and exports, he added. He said that the Indonesian government was also helping Pakistan to switch over to the cultivation of palm, which could bring down its import bill to a substantial level. However, in this connection, the UAF must play a proactive role and evolve new varieties of palm, which were adoptable to the local environment and could give economically better yield, he maintained. He said that both countries should also start immediate negotiations for a Free Trade Agreement (FTA) to enhance their bilateral trade in the coming years. Earlier, Atif Munir Sheikh, president of Faisalabad Chamber of Commerce & Industry, said that edible oil was a major component of our food. TheNewsPK |
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Thailand has limitations in controlling diesel price
The price of diesel fuel will be kept from exceeding 28 baht per liter between December and March, by means of limiting the types of high-speed diesel fuels offered at service stations to just the B7 variety and asking oil firms to refrain from setting a marketing margin above 1.4 baht per liter. The limitation of high-speed diesel to the B7 type has, however, triggered concerns among oil palm growers who worry that the price of oil palm would be affected. Prime Minister’s Office spokesperson Thanakorn Wangboonkongchana asserted that Prime Minister Gen. Prayut Chan-o-cha is aware of the concern of oil palm growers and would like to ask for their understanding, as the government is working to address the prices of energy at the system level. Although efforts are being made to trigger the least possible impact, the energy problem involved many income groups, and empathy was needed in order for the solution to the problem to be carried through. The objective of the current measure on diesel price is to enable transportation businesses to continue operating, and the prime minister has tasked the relevant agencies with evaluating the effectiveness of the measure so that information is available for use when implementing future measures related to energy. PattayaMail |
Malaysia - ESG and palm oil Too Big to Ignore
DESPITE the environmental, social and governance (ESG) concerns about the palm oil industry, it is a massive sector that has grown tremendously in production and exports, more so when crude palm oil (CPO) prices hit record highs like nowadays. Recent reports by Statista reseacher Raudhah Hirschmann also point out that palm oil is the world’s most used edible oil and is used in many consumer goods as well as in biofuels and Malaysia is the second leading producer worldwide after Indonesia. Together, these two countries supply more than 80% of the world’s palm oil supplies. In 2020, the largest export markets for Malaysian palm oil were China and India. Hirschmann notes that in 2019, the gross domestic product (GDP) from palm oil was estimated to be RM38.24bil (or 2.7% of the country’s GDP). TheStarMY |
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Indonesia - Jokowi’s EU fight
Indonesia and the European Union are normally close partners on many fronts, but this time around they are suing each other for “unfair trade practices” at the World Trade Organization (WTO). Indonesia is demanding the EU scrap its plan to ban palm oil imports from Indonesia, while the latter insists that Indonesia cancel its decision to bar nickel ore exports. Many Indonesians perceive that Europe loves to “preach” to developing nations on how to behave and act in accordance with the universal values of human rights, democracy and environmental protection. But they tend to forget the history of their “colonial cruelty” in the past and set a double standard when their own preaching directly affects their economic and political interests. President Joko “Jokowi” Widodo has reiterated that he will not back off from the decision he made in January 2020 to ban nickel ore exports, and that his government is fully prepared to face the EU’s challenge at the WTO. Earlier, the President vowed to go ahead with a plan to file a lawsuit with the WTO against the EU’s ban on Indonesian palm oil. For the President, this is a matter of the sovereignty of Indonesia, the world’s largest producer of nickel and palm oil. TheJakartaPost |
EU - Protectionism: how the EU palms-off the competition at our expense
A CONSTANT REFRAIN in the EU referendum was how important it was for our farmers to be in the EU’s Common Agricultural Policy and the Customs Union. Take a step back for a minute and imagine then what that means for countries that have no place inside the EU because they are not European, such as those in Asia, the Americas and Oceania? Where does being unable to be in the CFP and Customs Union leave them? The only solution is to negotiate a trade deal, either as a single country or as a member of another allied trading group, but as it turns out this is sub-optimal for it rarely results in open free trade. What happens is that in return for generally open access for EU member states in particular overseas markets, limited access is provided in the EU for the developing country through the use of quotas or only partial reductions in tariffs. The developing nation also finds that such a trade deal comes with strings attached, strings about judicial governance and regulations that can have nothing to do with commerce at all, but are designed to limit the competitiveness of that developing nation or satisfy a European NGO that has been lobbying in Brussels on an unrelated issue. ThinkScotland |
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Malaysia - EU's alleged palm oil discrimination proceeding to be held in Jan 2022, says Zuraida
KUALA LUMPUR (Nov 24): A dispute proceeding against European Union’s (EU) alleged discrimination against palm oil will be held at the end of January 2022, according to Minister of Plantation Industries and Commodities (MPIC) Datuk Zuraida Kamaruddin. Zuraida said she would personally attend the proceeding to provide explanations and the latest developments to combat discrimination against Malaysia’s main commodity. “I will be present to give a specific and clearer presentation on the position of the palm oil industry in the country. “They may not be updated with the ministry’s efforts to ensure that the assumption the EU has given is untrue, because with only one and two complaints by non-governmental organisations they have made drastic conclusions on our palm oil industry,” she said during a winding up debate on the Supply Bill 2022 at the committee level in the Dewan Rakyat on Wednesday (Nov 24). TheEdgeMarkets |
Philippines - FPI bats for use of palm oil in biodiesel mix amid rising prices
THE Federation of Philippine Industries, Inc. is batting for the use of palm oil in the country’s fuel mix to help bring down prices. FPI Chairman Jesus L. Arranza said using palm oil instead of coconut oil in the biodiesel mix will help bring down fuel costs as the former is around $300-$500 cheaper per ton than the latter. “Diesel is the one being used in public transport and in the delivery of goods, so it affects the masses. The use of the cheaper palm oil therefore will serve as a permanent solution instead of the government having to periodically adjust excise taxes just to cushion the impact of higher crude prices. This is a solution where no sector will be hurt, even the government,” Mr. Arranza said in a statement. He said coconut oil, which is used in the country’s biofuel mix, can be used for higher-value products, which will benefit farmers. BWorldonline |
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Brazil - First palm oil-based renewable diesel plant to be built in Brazil
Palm oil producer Brazil Biofuels (BBF) and Vibra Energia, the main fuel distributor in Brazil, entered an agreement to unlock the construction of the first hydrotreated vegetable oil (HVO) plant in the country, local media has reported. BBF will invest BRL1.8 billion ($323 million) in the new unit that will use palm oil as feedstock, rather than the country's usually-abundant supplies of soyoil, and is expected to start operations by 2025 in the tax-free zone of the city of Manaus in Amazonas state. The use of palm oil is a highly controversial feedstock in biodiesel because of its cited role in land-use change and deforestation in tropical countries. In view of that, the commodity's use in both FAME biodiesel and HVO will be capped in Europe from 2023 and scaled-down before an outright ban in 2030, while crops blamed for deforestation were targetted in international commitments announced at the recent COP26 UN climate conference. Under the agreement, Vibra Energia will commercialise the whole output of the plant that will have an initial capacity to produce 500 million litres the palm oil-based HVO per year. AgriCensus |
EU - The EU contributed to its own energy crisis, but diversification can solve it
EU member states must act to diversify their sources of natural gas, because Russia is clearly not a reliable partner. Even though liquefied natural gas (LNG) is more expensive than natural gas via pipeline, member states should turn to American and Middle Eastern LNG providers to diversify their sources of natural gas. This will help avoid the necessity of turning to higher carbon-emitting sources of power like coal and oil in order to keep electricity flowing. The Renewable Energy Directive, though, has imposed a de facto ban on palm oil as a biofuel, to prop up domestic producers. The EU wants to be a responsible participant in protecting the environment while also assisting its own economy. It can do both by revoking the restrictive biofuel provisions of the Renewable Energy Directive and re-committing to the future of biofuels by opening to imports of palm oil, with an eye towards sustainability and responsible stewardship. AtlanticCouncil |
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EU - Aquaculture feed giant Skretting supports EU efforts to ban illegal soy, but warns against unintended consequences
Soy products from deforested areas would be banned from the European Union under new proposals being put forward, but the extremely complex supply chain can pose hidden risks from trade action. Skretting, the world's largest aquaculture feed producer, is welcoming efforts by the European Union to crack down on illegal soy, particularly from Brazil, but is warning of potential unintended consequences in the highly complicated supply chain. Soy products from deforested areas would be banned from the European Union under new proposals being put forward, putting pressure on Brazilian suppliers in particular. The ban on soy, coffee cocoa, wood and palm oil from deforested areas as well as derivatives such as chocolate, leather and furniture would still need to be approved by EU lawmakers. IntraFish |
Global - Phasing out of soya for poultry food comes closer
Future use of imported soya in poultry and livestock feed is set to be curbed after global governments agreed to end and reverse deforestation by 2030. Representing 75% of global trade in key commodities that can threaten forests (i.e., palm oil, soya and cocoa), 28 governments have signed a new Forests, Agriculture and Commodity Trade (FACT) Statement at the COP26 negotiations in Glasgow. In addition, more than 100 leaders from nations including Brazil, Indonesia, the Democratic republic of Congo, Russia and Canada, representing 85% of the world’s forests, made a further commitment to the Glasgow Leaders’ Declaration on Forest and Land Use. The pledge is backed by almost £14 million in private and public funding with 12 nations, including the UK, supporting the initiative between now and 2025. Funds will go towards tackling wildfires, backing the right of indigenous communities and restoring degraded land. More than 30 of the world’s largest financial companies – including Aviva, Schroeders and Axa – have also promised to end investment in activities linked to deforestation PoultryWorld |
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Malaysia - Plantation industry urged to adopt circular economy
THE Ministry of Plantation Industries and Commodities is working closely with key stakeholders to future-proof the palm oil industry. Its Minister Datuk Zuraida Kamaruddin said the move includes engaging with Indonesia and taking steps towards improving practices and sustainability in the palm oil industry while dismantling all the barriers to compete healthily in the international market. “We are also looking into new markets like Japan and Central Asia to expand our palm oil export. We are also working on more aggressive marketing efforts to grow our share,” she said in her speech during the virtual opening ceremony of Future-Proofed Palm Oil Conference yesterday. Zuraida stated that her ministry is keen to adopt a circular economy in the palm oil industry to increase the revenue from oil palm biomass and address issues like climate change. She encouraged plantations to adopt mechanisation and automation to reduce the dependency on labour and increase efficiency, as well as adopt carbon neutrality practices and energy efficient technologies to lower carbon footprint in oil palm processing. TheMalaysianReserve |
Brazil - EU forest plan 'protectionist,' say Brazil soy farmers
Brazil’s soybean farmers hit back Tuesday at a European Union plan to ban food imports from deforested areas, calling it “protectionism disguised as environmental conservation.” Brazil, the world’s top producer of soy and beef, stands to lose big if the EU goes ahead with the draft law unveiled last week, which would require exporters to show their products are “deforestation-free.” The plan “is an affront to national sovereignty, and seeks to lump legal land use together with illegal deforestation, which is already punished under Brazilian environmental law,” the Brazilian Soy Producers’ Association (Aprosoja) said in a statement. “The European Union needs to understand it is no longer the metropole or owner of the world, and Brazil and South America are no longer its colonies.” Cattle ranching and farming are the biggest drivers of deforestation in the Brazilian Amazon, a sore spot in European relations with far-right President Jair Bolsonaro’s pro-agribusiness government. DigitalJournal |
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Nigeria - Merchant urges FG to prioritise palm oil production
The Federal Government and states have been urged to prioritise palm oil production to salvage the economy and save the country from present global economic crisis. The Chief Executive Officer of Wamak Oil Ltd, Olawale Makinde, made this appeal recently while speaking with The Guardian in Akure, adding that only few people were aware that palm oil has larger economic benefits than crude oil. “Over the years, unknown to many, palm oil has always been more expensive than petrol, and the demand has always been on the increase. “In 2019, the Central Bank of Nigeria (CBN) Governor, Godwin Emefiele, urged everyone to pay attention to palm oil as it is way more expensive than crude oil in the global market. TheGuardianNG |
Nigeria - Okomu Oil Palm Company 9M 2021 Result: A Spring in Earnings Sees a Rise in Equity
Okomu Oil Palm, best known for its agribusiness, operates two major businesses: crude palm oil and the rubber market. Okomu Oil has grown to become Nigeria's leading oil palm company with a production capacity of 45,400T in palm oil and 7300T of rubber. The agri-firm is not just known for profitability; its share price rose from N99 to N145 on the Nigeria Exchange Limited (NGX) with a market capitalization of N13.5tn. In nine months of 2021, the company achieved a net profit margin of 39.22%, recording an N11.6bn in profit after tax on a N39.9bn equity base. Profitability ratios increased significantly on the back of low debt ratios. Key Highlight Revenue appreciated Y-on-Y by +66.73% from N18.62bn in 9months 2020 to N31.05bn in 2021 Cost of sales surged by +46.21% of N21.58bn in 9month 2020 to N31.56bn in 9month 2021 Operating profit grew by +41.40% to N13.01bn in9month 2021. ProshareNG |
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Indonesia's no-deforestation pledge and agribusiness worries
How do we reconcile the seemingly ambiguous messages conveyed by Environment and Forestry Minister Siti Nurbaya Bakar with her remarks made immediately after President Joko “Jokowi” Widodo and the leaders of more than other 100 other countries signed an agreement to halt and reverse forest loss and land degradation by 2030, during the United Nations Climate Change Conference (COP26) in Scotland early this month? et a more down-to-earth question is: How will stakeholders of the palm oil industry contribute to realizing the no-deforestation pledge, which internationally, especially in the developed countries, is interpreted as zero-deforestation? This predicament will overshadow discussions at the 17th Indonesian Palm Oil Conference (IPOC) and 2022 Price Outlook, which will be convened in a virtual gathering by the palm oil industry association (Gapki) on Dec. 1-2. TheJakartaPost |
Indonesia looks to boost e-commerce with Pakistan
Envoy says Jakarta has set a $50b e-commerce trade target by 2025 Adam Mulawarman Tugio, Indonesia’s ambassador to Pakistan, on Sunday said that Indonesia has set a $50 billion e-commerce trade target by 2025 to connect with the biggest sector of global trade. “There are vast opportunities in e-commerce trade between Pakistan and Indonesia, which will increase bilateral trade and investment opportunities on both sides,” Adam Mulawarman Tugio told APP here. The envoy noted that both Pakistan and Indonesia have large youth populations that can make their mark in the global e-commerce trade and create vast employment opportunities in both countries. He said that global retail e-commerce sales in 2020 stood at $4.28 trillion, which is expected to reach $5.4 trillion by 2022. TribunePK |
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Canada - The Trudeau government wants a new trade pact with Southeast Asia. It won't be easy
In search of an Asia-Pacific strategy that doesn't rely on China, the Trudeau government has revived its push toward preferential trade with the 10 countries of the Association of Southeast Asian Nations (ASEAN). Landing a deal that isn't off-brand with the Liberal "progressive" trade agenda won't be easy. This club includes several countries not so much embraced by Canada as barge-poled for their human rights records. Nevertheless, when the House of Commons returns this week, International Trade Minister Mary Ng will table the government's notice of intent to reach a trade agreement. It's part of the more "transparent" approach to international treaty negotiations Liberals agreed to in the last Parliament after Opposition MPs complained about rushing through bills implementing deals they couldn't fully review. If you're reading this and wondering what an "ASEAN" is, you're not alone. CBC |
Malaysia Sees Little Impact From EU’s Deforestation Curbs
(Bloomberg) -- The European Union’s new rulings to curb food and wood products that are linked to deforestation will have limited impact on Malaysian shipments of palm oil and timber into the bloc, according to a government official in the Asian country. While the new ruling will most likely affect exports to the EU as there will be more requirements to fulfill, it only applies to new planted areas, according to Plantation Industries and Commodities Minister Zuraida Kamaruddin. Malaysia is focusing on “increasing productivity of the existing planted area rather than expansion,” she said in response to a query from Bloomberg News. Malaysia is not worried about the new ruling as it has taken proactive measures to address issues on sustainable forest management, Zuraida said. The Southeast Asian country, which is the world’s second-biggest palm oil producer, is committed to keeping at least 50% of its forest cover. Yahoo |
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Indonesia - Companies should build nursery centers for enviro restoration: Jokowi
Jakarta (ANTARA) - President Joko Widodo (Jokowi) confirmed he would coax private firms to partake in the efforts to reduce land damage and restore the environment by establishing nursery centers. "I will also compel all palm oil and mining companies to prepare such nurseries, so it would support restoration of the environment at mining and palm oil plantation sites," Jokowi stated at the Rumpin Modern Nursery in Rumpin Sub-district, Bogor District, West Java, on Friday. Several foreign ambassadors were present at the visit to the nursery center. "In the next three years, at least 30 (nurseries) like this will be built by the government," the president added. By January 2022, Jokowi said the seeds would be ready to be planted at locations prone to flooding and landslides as well as critical land that would need to be rehabilitated. AntaraNews |
Indonesia attends WTO session on EU lawsuit over nickel export ban
Jakarta (ANTARA) - Indonesia attended a session held by the dispute settlement panel of the World Trade Organization (WTO) as a follow-up to the European Union’s lawsuit against the country’s nickel ore export ban. The WTO panel led by Leora Bloomberg invited the disputing parties and a third party to hold a virtual session before the WTO panel in Geneva, Switzerland. In a series of sessions held in November 2021, the panel studied the documents pertaining to the EU’s lawsuit and Indonesia’s defense. “In its lawsuit, EU has opined that Indonesia has violated the commitment of WTO members to give as wide access as possible to international trade including raw nickel, which clearly violates Article XI.1 of GATT 1994,” deputy for investment and mining coordination at the Coordinating Ministry for Maritime Affairs and Investment, Septian Hario Seto, said in a written statement released on Thursday. AntaraNews |
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EU legislation against deforestation: the EU grain and oilseed chain flags wrong approach as the proposal only focuses on cleaning up domestic supply chains from deforestation
Brussels, 17 November 2021 The European Commission released today its proposal for a Regulation covering certain commodities associated with deforestation, demonstrating that Europe is serious about fighting the issue. COCERAL, FEDIOL and FEFAC, together representing the EU grain and oilseed trade, crushing and animal feed industry, support the EU Commission’s ambition in taking a leading role in the fight against deforestation. The text sets out binding due diligence obligations for operators and traders to carry out risk assessment and mitigation measures to comply with the marketing prohibition on goods associated with deforestation. Concretely, this translates into detailed requirements for traceability, including geo-localisation of the farm or plot of production, transmission of information and physical segregation of products. “These requirements do not reflect the reality of the market in our commodities and risk leading to the exclusion of those small players in the supply chain who cannot be singled out to mitigate the risks.” argued Jordi Costa, President of FEDIOL. “By implementing such restrictive measures, the Commission does not leave room for tailored approaches adjusted for instance to smallholders, good farmers in problematic areas or developing countries in their attempt to improve their production practices.”- FEFAC |
EU proposes law preventing import of goods linked to deforestation
Failure to comply could result in fines of up to 4% of a company's turnover in an EU country. The law proposed by the European Union's executive body sets mandatory due diligence rules for importers into the EU of soy, beef, palm oil, wood, cocoa and coffee, and some derived products including leather, chocolate and furniture. Many European companies operate in countries where environmental abuses are rife, but there is currently no EU-wide requirement for them to find and fix risks to the environment in their global supply chains. Reuters |
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EU Regulation on deforestation-free products. Questions and Answers on new rules for deforestation-free products
Why is the EU acting on global deforestation and forest degradation? The main driver of deforestation and forest degradation is the expansion of agricultural land, which is linked to the production of commodities we import such as soy, beef, palm oil, wood, cocoa and coffee. As a major economy and consumer of these commodities linked to deforestation and forest degradation, the EU is partly responsible for this problem — and it wants to answer the strong call of European citizens to lead the way to solve it. The Commission therefore proposes a Regulation to mimimise EU-driven deforestation and forest degradation. By promoting the consumption of ‘deforestation-free' products and reducing the EU's impact on global deforestation and forest degradation, the new rules are expected to bring down greenhouse gas emissions and biodiversity loss. The Open Public Consultation launched by the Commission for this legislative proposal gathered more than 1.2 million responses, the second most popular in the history of the EU, and showed overwhelming support from European citizens for EU action to tackle deforestation and forest degradation. Furthermore, the Standard Eurobarometer Survey of Spring 2021 shows EU citizens place the environment and climate change among the most important issues that their countries and they themselves personally face. This initiative will provide a guarantee to EU citizens that the products they consume on the EU market do not contribute to global deforestation and forest degradation. EuropeanCommission |
Indonesia - Need to push research on sustainable palm oil development: minister
Jakarta (ANTARA) - Research must be continuously encouraged to push the sustainable development of national palm oil, Coordinating Minister for Economic Affairs, Airlangga Hartarto, has said. "This research must continue to be conducted so that palm oil products can (have) added value, and the downstream also needs to be improved," he said virtually here on Wednesday. He deemed the role of research and development as well as the use of technology very important in improving the country's status. Palm oil accounts for as much as 15.6 percent of the total non-oil and gas exports and contributes about 3.5 percent to the national GDP (gross domestic product), he pointed out. Thus, research in the palm oil industry must focus on three things, he said. The first area of focus must be aspects such as reinforcement, development, and the improvement of plantations and palm oil industry empowerment, which integrates both upstream and downstream, he said. The second area that needs focus is data consolidation, productivity, capacity building, technology in palm oil mills, and the empowerment of oil palm farmers, he added. The third area of focus must be the development of the domestic market with the use of biofuels and research in the development of biodiesel 100 and avtur, he stated. AntaraNews |
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Malaysia - Council of Palm Oil Producing Countries to add four new members, says Zuraida
KUALA LUMPUR (Nov 16): The Council of Palm Oil Producing Countries (CPOPC) will add four new members, namely Colombia, Ghana, Honduras and Papua New Guinea, according to Plantation Industries and Commodities Minister Datuk Zuraida Kamaruddin. This would create a strategic alliance towards stabilising palm oil prices next year, she said. "The participation of these new CPOPC members will also increase the control over the palm oil market among the council members and ensure a better international market share," she told the Dewan Rakyat on Tuesday (Nov 16) in response to a question from Che Alias Hamid (PAS-Kemaman) who asked about the ministry’s strategic plans to deal with the uncertainty in commodity prices expected for next year. TheEdgeMarkets |
India - Crude palm oil options get SEBI nod
MCX may launch trade by year-end Market regulator Sebi has approved MCX application to launch options trading on crude palm oil futures. The exchange is expected launch the CPO options in December-end or early next year, sources said. India is dependent on imports to meet domestic demand and the CPO options will help the supply chain including importers and domestic trade to hedge their open position on the exchange at a very competitive cost. The futures trading in CPO on MCX has been gaining traction with the average daily turnover increasing 41 per cent in October to ₹376 crore against ₹266 crore in September. Investors are fast shifting from commodity futures to options with trading in futures becoming a costly affair after levy of peak margin which calls for 100 per cent upfront margin. Peak margin on option is much lower as it is calculated on the premium, while in futures it is levied on value of the commodity. TheHinduBusinessLine |
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EU Targets Key Commodities in Push to Prevent Deforestation
The European Union unveiled new rules for companies selling six major commodities in a bid to curb global deforestation. The European Commission, the 27-nation bloc’s executive arm, wants the regulation to cover soy, beef, palm oil, wood, cocoa and coffee, as well as some derived products such as chocolate, leather and furniture. The plan will require backing from member states and the European Parliament to enter into force. “It’s about our responsibility as one of the largest economies, which unfortunately drives deforestation and forest degradation in other regions,” EU Environment Commissioner Virginijus Sinkevicius said in an interview. “With this proposal we’re sending a very clear message that we’re leading the way in addressing this issue.” Bloomberg |
UN group issues guidelines for sustainable aviation fuel
The governing council of the aviation arm of the United Nations has adopted an expanded set of sustainability guidelines related to the production of sustainable aviation fuel (SAF). The move addresses concerns that SAF production should not unduly impact ecosystems. It was announced by Jane Hupe, the deputy director of environment for the International Civil Aviation Organization (ICAO), on Friday at the COP26 climate change conference in Glasgow, Scotland. The ICAO's action followed a declaration last Wednesday, signed at COP26 by the U.S. and 22 other nations, in which those nations committed to promoting the development of SAF, but in a manner that supports UN Sustainable Development Goals, including "avoiding competition with food production for land use and water supply." The need for clear SAF production guidelines has become more pronounced in recent months. IATA pledged last month to reach net zero emissions by 2050, and the trade group envisions 65% of aviation's carbon footprint being ameliorated by SAF. In the U.S., the Biden administration in September set a goal of 3 billion gallons of domestic sustainable-fuel production by 2030, up from the mere 4.5 million gallons that will be produced this year. The administration is also targeting enough sustainable-fuel production by 2050 to meet all aviation fuel demand, which is estimated for that year at 35 billion gallons. TravelWeekly |
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Malaysia - FGV appoints independent auditing firm to conduct ILO’s forced labour indicators assessment
KUALA LUMPUR, Nov 16 — FGV Holdings Bhd (FGV) has appointed Elevate as the independent auditing firm to conduct an assessment of FGV’s operations against the 11 International Labour Organisation (ILO) Indicators of Forced Labour. The assessment is part of FGV’s efforts towards petitioning for the revocation of the Withhold Release Order (WRO) by the US Customs and Border Protection (CBP). Elevate is an independent sustainability and supply chain service provider with vast experience in advancing social compliance and addressing forced labour risks by applying a worker-centric approach. MalayMail |
Indonesia - S. Korea cuts Indonesia’s payment in joint jet project
Indonesia will see its payment reduced by 100 billion won ($85 million) to 1.6 trillion won for the joint fighter jet project with South Korea, the Defense Acquisition Program Administration said Monday, a week after it reached a new deal with Indonesia amid rumors of the Southeast Asian country defaulting. The KF-21 program -- in which Indonesia seeks a 20 percent share and technology know-how while Korea holds the rest -- aims to mass produce jets as early as 2027, but Indonesia had hardly paid any of its contributions to the project, which is worth at least 8 trillion won. The reduction in Indonesia’s payment is in line with tax deductions for all “defense assets” that DAPA, the country’s chief weapons buyer, delivers and it has nothing to do with relieving the burden on Jakarta, according to a senior DAPA official. KoreaHerald |
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Malaysia - Opinion: The palm oil industry can be net-zero carbon by 2040
As chemical engineers and members of IChemE’s POPSIG (The Institution of Chemical Engineers’ Palm Oil Processing Special Interest Group), we have been closely following the COP26 climate change summit in Glasgow, which ran from Oct 31 to Nov 12. Ahead of COP26, we noted that on Sept 27, Prime Minister Datuk Seri Ismail Sabri Yaakob announced that Malaysia was committed to its target of becoming a carbon-neutral nation by as early as 2050. Ismail Sabri accelerated plans on Oct 11 to reduce the intensity of greenhouse gas (GHG) emissions across the economy by 45% based on the GDP in 2030. Our stand would be tabled at COP26. Palm oil has the lowest CO2 emissions So, what action can the palm oil industry take? Fortunately, it started its sustainability journey early and has a 15-year head start. On Sept 30 in Milan, Maria Vincenza (Cinzia) Chiriacò of CMCC (Euro-Mediterranean Centre on Climate Change) presented a paper titled “The environmental impacts of palm oil and main alternative oils”. Palm oil has an average emission of 0.45 metric tonnes of carbon dioxide equivalent per tonne (MT CO2eq/MT) oil compared with 2.89 for soy, 2.47 for rapeseed and 1.18 for sunflower. TheEdgeMarkets |
Nigeria - Reviving palm oil exportation by solving the derivation controversy
In 1832, 75% of the global palm oil export came from Nigeria. Between 1961 and 1965, world oil palm production was 1.5 million tons, with Nigeria accounting for 43% of that production. According to a report by PWC, Nigeria ranks behind Malaysia and Indonesia in palm oil output, accounting for less than 2% of the total global market production of 74.08million MT. See Figure 1. They are also crude oil-producing nations; they have crude oil. Why has agriculture collapsed? Well, everyone says crude oil, but that’s a bit simplistic; why didn’t exports of Palm Oil and Groundnut expand when crude oil prices fell? From 1960 to 1973, crude oil prices were sold below $3 a barrel; see Figure 2 showing crude oil prices. Why did Nigeria not return to exports of palm oil? To summarize, from 1960 to 1965, Nigerian crude oil revenues to total revenues were zero. By 1970, Nigeria’s crude oil revenues as a share of total revenues jumped to 26%, but crude oil was sold at below $3 a barrel from 1960 to 1972. Also, in the same period, Nigeria’s palm oil exports fell from 167mt to 8mt, same for groundnuts, 502mt in 1961 to 291mt in 1970. By 1975, crude oil share was at 77%, but crude oil prices were $10 on average a barrel. NairaMetrics |
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Agriculture and conservation objectives do not have to be at odds
Crop and livestock production are among the main drivers of biodiversity loss globally. Due to the ever-increasing demand of land for food production, reverting global biodiversity decline and feeding the world is one of the greatest challenges of our time. A new study finds that integrating food production and biodiversity conservation within a single spatial planning framework can minimize these trade-offs to the benefit of both nature and people. One in four species are currently at risk of extinction, mostly because of our current unsustainable way of life. In response to this crisis, the parties of the Convention on Biological Diversity are drafting a comprehensive strategy aimed at first slowing down and then reverting current biodiversity trends through a comprehensive set of 20 targets designed to address the drivers of biodiversity loss in both land and water systems. Three of these targets are specifically concerned with conserving and restoring areas important for biodiversity and planning land- and sea-use. What makes implementing such targets difficult, is the fact that allocating areas for conservation cannot be done without accounting for aspects of rural development and the increasing demand for farmland products ̶ the main driver of biodiversity loss through habitat loss, degradation, pollution, and other direct drivers of global biodiversity decline. EurekaAlert |
Fact Check: New Research Suggests Palm Oil Allows Cancer To Spread. But Our Experts Say, No, You Don’t Need to Throw Out Palm Oil Products
New research linking palm oil to the spread of cancer throughout the body is gaining traction and causing panic for some people. But our experts say no, there’s no need to throw away your palm oil products. “Would I throw out everything in the pantry with palmitic acid? No,” Dr. Andrea Tufano-Sugarman, a physician and hematology and oncology fellow at NYU Langone Health, tells SurvivorNet. “Some of the biggest offenders (containing palm oil) are things that can actually be nutritious in moderation, such as peanut butter.” If this study is alarming to you and you’re tempted to throw away all your palm oil products, don’t, as it could have an effect on your diet. And cancer patients need as much nutrition as possible. “I imagine that many patients with metastatic cancer would be interested in adopting a strict diet if they thought it would help their cancer,” Dr. Tufano-Sugarman says. “Unfortunately, cancer is a metabolically-active process that burns calories, and many patients with metastatic disease have decreased appetite, gastrointestinal issues, fluid accumulation causing early satiety, and other reasons for unintentional weight loss,” she continues. SurvivorNet |
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China signs up to combat forest destruction, but critics say it’s not enough
China is one of more than 100 nations that pledged at the COP26 climate talks this month to halt and reverse forest loss and land degradation by 2030. But that has not stopped criticism of the country’s role in global deforestation. China’s commercial supply chains lean heavily on so-called forest-risk commodities, or agribusiness materials such as palm oil, soy beans and beef cattle, which involve forest destruction, Rod Taylor, global director of the forests programme at the World Resources Institute, said in an interview on Monday. “There is a good chance that you are causing problems unless you’re doing the due diligence,” said Taylor. “It’s both on the financing and the sourcing of commodities … so you can say exactly where this is coming from and whether or not it is linked to deforestation.” Taylor, however, said improvement in China’s domestic environmental policies now needed to be extended across its own borders. SCMP |
Tanzania: Govt Places Emphasis On Palm Tree Block Farming
The government has placed great emphasis on palm tree block farming in councils with vast and productive lands as it wants to address edible oil shortage in the country. Deputy Minister for Agriculture, Hussein Bashe, said the ministry has devised a strategic plan to ensure palm tree farming is being conducted in such a way that it will create massive production. Mr Bashe gave the announcement in the Parliament on Friday, when reacting to a question posed by legislator Mr Charles Mwijage (Muleba-North-CCM) on what measures are in place for the country to produce edible oil to meet the local market demand. AllAfrica |
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EU - Trade officials ‘taking a chainsaw’ to EU forest protection plans
European trade officials have been accused of “taking a chainsaw” to a draft EU law to protect the world’s forests, as a leaked document revealed an attempt to water down the plans. The European Commission is due to unveil a proposal on Wednesday to prevent EU sales of beef, soya, cocoa and other products linked to deforestation. A leaked memo seen by the Guardian reveals that commission trade officials have raised “serious concerns” about the regulation drafted by their environment department colleagues. Last week the European commissioner for trade, Valdis Dombrovskis, told delegates at Cop26 that trade policy “must do more to help us achieve our global climate targets”, referencing the upcoming anti-deforestation law. The EU joined the US, China and other major forested countries including Brazil and the Democratic Republic of the Congo in a voluntary declaration in Glasgow to halt and reverse the felling of forests. To help make this promise a reality, the EU is proposing to prevent beef, palm oil and other commodities driving deforestation from being sold in its market. In a departure from past EU laws, the commission proposed to regulate products linked to all deforestation, legal or illegal, according to an earlier leaked draft. Previous laws have sought to clamp down on illegal deforestation only. TheGuardian |
Indonesia - Govt's roadmap focused on downstream palm oil industry's development
Jakarta (ANTARA) - The government has prepared a roadmap for developing the downstream palm oil industry to transform it into world's largest producer to weather volatility in crude palm oil prices, Coordinating Economic Affairs Minister Airlangga Hartarto stated. “The roadmap for the development of downstream palm oil industry has been in place. It covers ways to increase productivity, support downstream activities, such as oleofood, oleochemical and biofuel; create an ecosystem; implement good governance; improve capacity building; and develop technology to boost palm oil businesses,” the minister noted in a statement released in Jakarta on Saturday. Hartarto remarked that palm oil was one of the resilient farm commodities and contributed to the national economic growth in the third quarter of 2021. The palm oil industry also contributes directly and indirectly to creating jobs. Hence, the government has adopted a vision to turn the domestic palm oil industry into the world’s largest palm oil producer and encourage development of the downstream palm oil industry, he stated. With land area covering 10 percent of the global land bank for vegetable oils, Indonesia is able to become the world’s largest palm oil producer and hold a 55-percent share of the global palm oil and vegetable oil market, he noted. AntaraNews |
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UK Soy Manifesto launched on Tuesday, 9th November 2021
UK industry leaders commit to sourcing deforestation and conversion free soy by 2025. The UK Soy Manifesto is a collective UK industry commitment to work together to ensure all physical shipments of soy to the UK are deforestation and conversion free (cut-off date of January 2020 at the latest), fully implemented immediately where possible and no later than 2025. This initiative builds on the work of the last 3 years of the UK Sustainable Soy Roundtable, working closely with industry in particular Tesco and supported by WWF. Efeca is providing secretarial support to the development and implementation of the UK Soy Manifesto. The UK Soy Manifesto was launched today by Ken Murphy (Tesco Plc CEO ), Tanya Steele (WWF UK CEO), Rosalind Campion (Director for International Energy and Climate Finance at BEIS), Bastien Sachet (CEO, Earthworm Foundation), Agathe Grossmith (CSR Project Director, Carrefour), Chris West (Deputy Director of Research, SEI York), and James McCulloch (Head of Feed Sector, Agricultural Industries Confederation). Efeca |
Malaysia’s oil palm industry affected by insufficient manpower
UALA LUMPUR: Malaysia does not have sufficient manpower for harvesting jobs in the oil palm plantations, said the Ministry of Plantation Industries and Commodities (MPIC). MPIC undersecretary Syahnaz Akhtar Mat Ali said the ministry’s efforts to attract local workers for harvesting jobs were hampered by the job scope which was deemed unattractive by the locals. The negative perception had adversely affected the industry, resulting in players having to seek more foreign labour. “After asking the government to give special approval, we managed to get 32,000 (foreign workers) over the last few weeks, but I think this is still insufficient for the industry players,” he added. Syahnaz Akhtar said this during the question and answer session at the launch of Nottingham University’s ‘Trafficking-in-Persons (TIP) Project Related to the Manufacturing/Palm Oil Industry’ held virtually today. TheSunDaily |
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India - USDA forecasts 8.6 mt palm oil import by India in 2021-22
India will likely import 8.6 million tonnes (mt) of palm oil during the November 2021-October 2022 season, up 3,00,000 tonnes from previous estimates, according to the United States Department of Agriculture (USDA). The USDA’s Foreign Affairs Service, in its November “Oilseeds: World Market and Trade” outlook said it is anticipating an increase of 4,70,000 tonnes of palm oil imports by India to reach the mark of 8.5 mt during 2020-21. The recent cut in import duty by the Indian government is the reason for the higher imports, it said. It said some global suppliers of palm oil have already increased exports to India. Following the first wave of tariff reductions by India, palm oil imports in August and September more than doubled from the January-July 2021 monthly average. BusinessJournalIN |
Indonesia mulls hoarding UCO to hit emissions goals
Indonesia may impose restrictions on used cooking oil (UCO) exports from next year to help fuel its own renewable energy targets, according to the Indonesian Palm Oil Association's vice-chairman for trade and sustainability Togar Sitanggang. With Indonesia's already ambitious 30pc biodiesel mandate and further measures needed to meet its 2060 net zero emissions target it will need full use of its own feedstocks, Sitanggang said at the Argus Biofuels Europe and Asia Markets Virtual Conference. Nothing official has been announced and details are yet to be outlined, but the implication will alarm the European biofuels community that relies heavily on UCO to meet its own renewable targets. It is already facing a long-term structural shortage because of the generous incentives impressed on waste-based feedstocks. ArgusMedia |
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Brazil - Climate change: Wales imports 'cause deforestation'
A Brazilian tribal chief has warned Welsh soya imports could be responsible for "not only deforestation but indigenous blood". Rivelino Verá Gabriel said soy farming was wrecking the lifestyle of the South American nation's Mbya Guarani people. It comes as the effect on deforestation by goods imported to Wales from high risk areas is exposed in a new report. It has led the Welsh government to promise action on products such as beef, soy and palm oil. Mr Gabriel lives in Brazil's Atlantic Forest and is a coordinator of the Guarani Yvyrupa Commission, which brings together members of the Guarani people. Commenting on the report, he said: "People who buy soya must know where it comes from, that there's strong traceability. BBC |
Global - ‘Land grabs’ linked to major commodity supply chains will increase
Expropriation of land to make way for commodities is posing risks to corporates and investors as well as the environment, with illegal grabs set to increase as demand for food and materials rise. Thousands of people are illegally forced from their homes every year for miners and farmers to produce commodities, such as palm oil and cobalt, that find their way into major supply chains. According to research by risk consultancy Verisk Maplecroft, which analysed 170 commodities, palm oil and cobalt are at “extreme” risk of land grabs (figure 1). Other commodities such as silicon and copper that are central to a low-carbon transition, for example in battery production for electric cars, as well as garlic and coconut are also often linked to expropriation. GlobalTradeReview |
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ANALYSIS - What Nutella Teaches Us About Global Supply Chain Risks
Beloved hazelnut spread Nutella is a classic example of the benefits and costs of globalization. Some 400,000 tons of it are produced every year by a supply chain touching almost every continent. Key ingredients such as cocoa, hazelnuts and palm oil are sourced from Africa, the Middle East and Asia, as producer countries boast about bringing their people out of poverty. That network has come with consequences, though. Accusations that child labor was being used on hazelnut farms in Turkey pushed Nutella’s parent Ferrero to ramp up traceability of its supplies in 2019. The breakneck expansion of palm-oil production in Indonesia and Malaysia has come at the expense of vast swathes of rainforest, which Ferrero tries to counteract with sustainable sourcing and satellite monitoring of forest areas. Now environmentalists and some farmers are grumbling about the impact of the firm re-shoring some production back to Italy. Nutella is only one of many reminders that multinational supply chains are at the heart of global struggles like the fight against climate change and the drive to stamp out human-rights abuses. And yet this responsibility still seems to be catching firms by surprise. WashingtonPost |
Malaysia - Sarawak palm oil industry – A catalyst for rural development
The rise of the palm oil industry in Sarawak The palm oil industry in Malaysia is more than 100 years old whereas in Sarawak earnest large scale planting only started in the early 1990s and is less than 60 years old here. In peninsular Malaysia rural developments were brought about by the cultivation of oil palm through government schemes like Felda, Felcra, and Sime Darby, Tabung Haji and independent smallholders associations, transforming rural communities into self sufficient, middle class households with comfortable lifestyles. The main drivers for development were road constructions to these rural communities where oil palms were cultivated, resulting in accessibility and spur even more agricultural activities as well as support industries for these developments. “The most important aspect of oil palm cultivation is opening up of idle lands or conversion of lands (padi, cocoa and others) for oil palm cultivation, especially along the fringes of large oil palm estates, giving rise to thousands of smallholders oil palm farmers,” Eric Kiu Kwong Seng, Chairman of Sarawak Oil Palm Plantation Owners Association (Soppoa) said during an interview recently BorneoPost |
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Global - Leading Consumer Goods Retailers and Manufacturers Launch Actions to Transform Production Landscapes to 'Forest Positive' by 2030
Sat, November 6, 2021, 7:00 AM·5 min read Forest Positive Coalition of Action aligns on landscape engagement ambition to help stop deforestation and advance forest positive strategy The Consumer Goods Forum's Forest Positive Coalition of Action launches first phase in strategy to transform areas equivalent to the size of Coalition's combined production-base footprint to forest positive by 2030 Coalition and its 20 members commit to invest in local-level initiatives driving 'nature positive, climate positive, and people positive' outcomes PARIS and GLASGOW, Scotland, Nov. 6, 2021 /CNW/ -- The Consumer Goods Forum's (CGF) Forest Positive Coalition of Action has today launched an ambitious strategy for driving transformational, forest positive change in the regions where the Coalition's key commodities are produced and sourced by 2030. Engagement in these landscapes is a key element of the Coalition's Theory of Change, complementing its focus on sustainable supply chain management and the development of forest positive businesses throughout global value chains. By collaborating with local stakeholders, organisations, and governments to support these initiatives, the Coalition seeks to use its influence as 20 of the world's leading retailers and manufacturers to catalyse wider transformation in commodity supply chains, production landscapes and jurisdictions worldwide. YahooFinance |
COP26: Supermarkets promise to halve environmental impact by 2030
Five of the UK's biggest supermarkets have promised to halve the environmental impact of a weekly food shop by the end of the decade. Tesco, Sainsbury's, Waitrose, Co-op and M&S said they would reduce carbon emissions, deforestation and the food waste and packaging they produce. Their efforts will be monitored by the WWF conservation group. "Food production is one of the biggest threats to our planet," said WWF chief executive Tanya Steele said. The chief executives of the supermarkets, which together serve more than half of UK food shoppers, said in a joint statement: "We recognise that a future without nature is a future without food. By 2030 we need to halt the loss of nature." BBC |
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Indonesia - Explainer: Indonesia says wants to reduce deforestation, not completely end it
SINGAPORE, Nov 5 (Reuters) - Indonesia, home to a third of the world's rainforests, has backtracked from a global pledge to end deforestation by 2030, calling for a gradual approach that will allow for the country to continue with its development plans. Officials in the world's fourth most populous country said that they have a less absolute interpretation of a clause in an agreement signed on Monday at the COP26 climate talks calling for a "halt and reversal" of forest loss. Reuters Read our comments on Indonesian pledge towards carbon neutrality |
Newswire - Musim Mas Launches Interactive Webpage and 3rd Annual Aceh Report to Communicate on Progress in the Aceh Province
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Malaysia keen to invest in Bangladesh's palm oil industry
Malaysia has expressed interest to invest in palm oil-centric industries in Bangladesh to diversify exports. This will indirectly and directly provide employment opportunities to many people and expand diversified businesses. Malaysia's Minister for Plantation, Industries and Commodities Zuraida Kamaruddin spoke in a meeting with Bangladesh High Commissioner in Malaysia Md Golam Sarwar at her office in Putrajaya on Tuesday. Recalling the contribution of Bangladeshi workers in the development of Malaysia's palm oil sector, the minister said her country is interested in expanding the palm oil market in Asian countries. TheDailyStar |
Switzerland confident palm-oil deal with Indonesia can help sustainabilty campaign
The Swiss government is confident that a landmark trade agreement with Indonesia, which allows the exportation of palm oil to the European country at a low tariff, can improve environmentally sustainable practices. A visiting Swiss delegation also expressed confidence that the free trade agreement (FTA) with EFTA countries, a group which comprises the Alpine country, Iceland, Norway and Liechtenstein could spur further reform in the country. "This agreement will not only open access to markets on both sides, but also guarantee legal certainty, and protection for the environment and labor," Switzerland's President of the Council of States Alex Kuprecht told a press briefing on Monday. TheJakartaPost |
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Palm oil: Countries to agree to halt deforestation in COP26 major deal
Indonesia has agreed to end deforestation by 2030 which is good news for opponents of the country’s palm oil industry. The country has been criticised for clearing forests for palm oil cultivation used in a range of products including biodiesel production. The EU has vowed to end palm oil imports from Indonesia and Malaysia which has erupted into a legal row between the parties. More than 100 world leaders will promise to end and reverse deforestation by 2030 in the COP26 climate summit's first major deal. Brazil - where stretches of the Amazon rainforest have been cut down - will be among the signatories on Tuesday. The pledge includes almost £14 billion (€16.5 billion) of public and private funds. Felling trees contributes to climate change because it depletes forests that absorb vast amounts of the warming gas CO2. BiofuelsNews |
COP26 - COP26: global deforestation deal will fail if countries like Australia don’t lift their game on land clearing
At the Glasgow COP26 climate talks overnight, Australia and 123 other countries signed an agreement promising to end deforestation by 2030. The declaration’s signatories, which include global deforestation hotspots such as Brazil, Indonesia and the Democratic Republic of the Congo, have committed to: working collectively to halt and reverse forest loss and land degradation by 2030 while delivering sustainable development and promoting an inclusive rural transformation. This declaration should be welcomed for recognising how crucial forest loss and land degradation are to addressing climate change, biodiversity decline and sustainable development. TheConversation |
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Global - Govts, agribusiness make climate commitments at COP26 on soy, palm
World leaders at COP26 climate talks have committed to end deforestation and encourage the planting of new trees, a move that was joined by companies promising to strip unsustainable palm oil and soybean out their supply chains. In what is being heralded by the organisers as a major breakthrough at the UN climate summit in Glasgow, more than 100 national leaders – including those from major producing countries of soybean and palm oil – signed the commitment that host-state UK said would cover 85% of the world’s forested areas. But the deal will require much more in the way of detail and robust enforcement if it is to succeed in its aims, climate policy analysts have pointed out, and have cited the example of an intergovernmental agreement in 2014 that failed to slow the pace of deforestation. In the text of the commitment, signatories agreed to take 6 steps to end deforestation, including an undertaking to “facilitate trade and development policies, internationally and domestically, that promote sustainable development.” AgriCensus |
Global - Asset management firms pledge to fight deforestation by 2025
Firms with $8.7trn in assets under management have committed to "make best efforts" to eliminate agricultural commodity-driven deforestation from their portfolios by 2025. The firms who have signed up will strive towards eliminating agricultural commodity-driven deforestation from cattle products, palm oil, soy, and pulp and paper production from portfolios by 2025. They will also use active ownership and ongoing stewardship to "catalyse actions to eliminate deforestation across supply chains". This will include publicly disclosing risks, establishing policies to address agricultural commodity-driven deforestation, deepening engagements, publicly reporting progress on efforts to tackle forest-risk agricultural commodity-driven deforestation, and increasing investment in nature-based solutions. InternationalInvestment |
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Global - Ten of the world’s biggest agricultural commodity companies announce accelerated action towards net-zero emissions
November2021 COP26,Glasgow,UK.Ten of the world’s biggest global agricultural trading and processing companies have issued a joint statement committing to a sectoral road map by COP27 for enhanced supply chain action consistent with a 1.5°C pathway. The companies–ADM,Amaggi,Bunge,Cargill,GoldenAgri-Resources,JBS,LouisDreyfusCompany,Olam,Wilmar and Viterra manage large global trade volumes in key agricultural commodities,including more than half of both Brazilian soy exports and global palmoil trade. The statement,which will be announced at the World Leaders’ Summit on Forests and Land Use at COP26, signals a commitment to take urgent collective action to include other key stakeholders in their supply chains. The goal is to identify solutions at scale to further progress on eliminating commodity-driven deforestation and reducing greenhouse gas emissions (GHG). The Intergovernmental Panel on Climate Change estimates that 23% of global GHG emissions are associated with landuse, including 11% of global GHG emissions from deforestation and the conversion of natural ecosystems. The commitment from these companies builds on the existing initiatives to define a pathway to meet the 1.5°C targets, working with other supply chain actors and governments. This collaboration will focus on how to scale up support and incentives for smallholders and farmers, increase traceability to indirect suppliers and better track Scope 3 emissions.WEForum s,,andbettertrackscope3emissions. s,, |
COP26 - Over 100 leaders make landmark pledge to end deforestation at COP26
More than 100 leaders will commit to halt and reverse forest loss and land degradation by 2030. In the biggest step forward in protecting the world’s forests in a generation, more than 100 leaders will commit to halt and reverse forest loss and land degradation by 2030 at an event convened by the Prime Minister at COP26 today. The pledge is backed by almost £14 billion ($19.2 billion) in public and private funding. Countries spanning from the northern forests of Canada and Russia to the tropical rainforests of Brazil, Colombia, Indonesia and the Democratic Republic of the Congo will endorse the Glasgow Leaders’ Declaration on Forest and Land Use. Together, they contain 85% of the world’s forests, an area of over 13 million square miles. Forests are the lungs of our planet, absorbing around one-third of the global CO2 released from burning fossil fuels every year, but we are losing them at an alarming rate. An area of forest the size of 27 football pitches is lost every minute. GOVUK |
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Nigeria - Boosting oil palm industry amid funding, land challenges
Oil palm entrepreneurs and researchers have called on the government to remove hurdles and create more enabling environment for investors and smallholder farmers in the subsector. These, they said, could be done with specialised funding, more access to land and support for small, medium and large-scale investors in terms of improved seedlings, processing equipment and technical know-how throughout the value chain. They also advocate a tax holiday to encourage industrial sustainability and stability, which would trigger industrial growth in the long run. Despite huge potential in the oil palm production and the comparative advantage in production, they lamented, Nigeria has neglected investments in the sector and descended to the fifth largest producer in the world. TheGuardianNG |
Nigeria - Okomu Oil’s nine-month profit surges 132% as sales hit record N31 billion
Okomu Oil Palm Company Plc recorded a 132 per cent growth in bottom-line for the period from January through September, the earnings report of the palm oil producer obtained from the Nigerian Exchange on Monday showed. The posted record turnover in excess of N31 billion as sales enlarged 66.7 per cent, with exports to outside its base Nigeria contributing N4.2 billion. Majority-owned by Luxembourg-based Socfinal group with 62.7 per cent, Okomu Oil manufactures palm oil, rubber cup clumps, palm kernel oil and palm kernel cake. The company cut the costs it incurs on servicing loans by 75.3 per cent to N111.1 million and grew its finance income from N10.8 million to N54.1 million. Pre-tax profit advanced to N14.8 billion, a 117 per cent increase over what it posted for the same period last year. Earnings Per Share rose to N12.16 from N5.24, reflecting a 132 per cent expansion. A demand surge in the palm oil market is pushing Okomu Oil, which owns twenty thousand hectares of cultivated palm to enter a synergy with smallholder farmers, who control 80 per cent of production in Nigeria, to narrow the gap. PremiumTimesNG |
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Palm oil news. November 2021 CSPO Watch