Palm Oil. December 2022 News
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December 31, 2022
Nigeria’s oil palm capable of contributing $20bn annually to GDP- Inyang
ABUJA-THE National President, National Palm Produce Association of Nigeria, NPPAN, Alphonsus Inyang, disclosed that Nigeria’s oil palm is capable of contributing $20 billion annually to Gross Domestic Product, GDP, along with massive job creation along the value chain.
Inyang in an interview with Vanguard pointed that the banks in Nigeria are more interested in funding processing while enough palm fruits are hampering that.
He said: “The local investors are having problems of finding primary production, all the banks in Nigeria are more interested in funding processing whereas we don’t have enough fruits on the trees to feed the Mills because most of the palm trees have grown wild most of them planted since independence and after the civil war.
“In Malaysia, Indonesia and Thailand it’s the duty of government to develop new plantations and we’re calling on our governments to sit down with us to develop an enduring roadmap for this tree of life called oil palm. With oil palm we can contribute over 20Billion Dollars to the GDP within a short period. Vanguard Nigeria
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Indonesia Will Export Less Palm Oil to Keep Supplies at Home
(Bloomberg) -- Indonesia, the world’s biggest palm oil producer, is set to export less of the commodity overseas as it tightens a policy requiring companies to keep more supply at home. Prices jumped more than 2%.
The government will cut the amount producers can export to six times the domestic sales requirement, down from eight times currently, according to Budi Santoso, director general of foreign trade at the trade ministry. The change will take effect from Jan. 1, he said by text message on Friday.
The policy — known as the domestic market obligation — requires palm oil exporters to sell a portion of their supply to the domestic market before they can receive a permit to export. It was implemented in late May this year following the lifting of Indonesia’s palm oil export ban, a move which shocked global markets as it sparked fears of worsening food inflation.
The government wants to ensure ample domestic supply during the Ramadan and Eid holidays in April as production will be seasonally weaker in the first quarter, said Firman Hidayat, an official at the coordinating ministry for maritime affairs and investment, which is involved in the decision making.
Indonesia will also impose a higher biodiesel blending mandate in 2023, which will increase domestic consumption of palm oil. “We don’t want domestic supply to be reduced and risk an increase in local prices,” Hidayat said. Bloomberg
Nigeria’s oil palm capable of contributing $20bn annually to GDP- Inyang
ABUJA-THE National President, National Palm Produce Association of Nigeria, NPPAN, Alphonsus Inyang, disclosed that Nigeria’s oil palm is capable of contributing $20 billion annually to Gross Domestic Product, GDP, along with massive job creation along the value chain.
Inyang in an interview with Vanguard pointed that the banks in Nigeria are more interested in funding processing while enough palm fruits are hampering that.
He said: “The local investors are having problems of finding primary production, all the banks in Nigeria are more interested in funding processing whereas we don’t have enough fruits on the trees to feed the Mills because most of the palm trees have grown wild most of them planted since independence and after the civil war.
“In Malaysia, Indonesia and Thailand it’s the duty of government to develop new plantations and we’re calling on our governments to sit down with us to develop an enduring roadmap for this tree of life called oil palm. With oil palm we can contribute over 20Billion Dollars to the GDP within a short period. Vanguard Nigeria
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Indonesia Will Export Less Palm Oil to Keep Supplies at Home
(Bloomberg) -- Indonesia, the world’s biggest palm oil producer, is set to export less of the commodity overseas as it tightens a policy requiring companies to keep more supply at home. Prices jumped more than 2%.
The government will cut the amount producers can export to six times the domestic sales requirement, down from eight times currently, according to Budi Santoso, director general of foreign trade at the trade ministry. The change will take effect from Jan. 1, he said by text message on Friday.
The policy — known as the domestic market obligation — requires palm oil exporters to sell a portion of their supply to the domestic market before they can receive a permit to export. It was implemented in late May this year following the lifting of Indonesia’s palm oil export ban, a move which shocked global markets as it sparked fears of worsening food inflation.
The government wants to ensure ample domestic supply during the Ramadan and Eid holidays in April as production will be seasonally weaker in the first quarter, said Firman Hidayat, an official at the coordinating ministry for maritime affairs and investment, which is involved in the decision making.
Indonesia will also impose a higher biodiesel blending mandate in 2023, which will increase domestic consumption of palm oil. “We don’t want domestic supply to be reduced and risk an increase in local prices,” Hidayat said. Bloomberg
December 30, 2022
Europe-ASEAN relations: What to expect in 2023
While ASEAN and the EU want to deepen their ties, a raft of disagreements — from the Ukraine conflict to trade protectionism — could make next year a challenging one for both sides.
On December 14, leaders from most European and Southeast Asian countries met for a summit in Brussels for the first time. It was a symbolic display of how far relations have improved in the 45 years of relations between the EU and the 10-member Association of Southeast Asian Nations (ASEAN).
Relations were elevated to a "strategic partnership" in late 2020 and bilateral trade in goods increased by nearly 14% in 2021. And having ended 2022 on a high note, "policymakers in both regions are expected to keep up the upbeat tempo in relations both in terms of content and high-level meetings," said Shada Islam, a Brussels-based commentator on European Union affairs.
Many within Brussels are optimistic that Indonesia, which takes over the annually-rotating chair of the ASEAN bloc next year, will be a reliable partner. It will be the first democracy to lead the bloc for several years, and Indonesian President Joko Widodo has moved to improve his country's relations with the West since entering office in 2014.
"Indonesia's leadership of ASEAN will likely ensure continuity in the current positive trend of EU-ASEAN relations," said William Yuen Yee, a research assistant with the Columbia-Harvard China and the World Program. DW
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Malaysia-CPTPP expected to boost palm oil exports, says MPOB
PETALING JAYA: The Malaysian Palm Oil Board (MPOB) said the country’s ratification of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) last September will boost demand for palm oil products and broaden access to new markets.
“Upon ratification and implementation of the CPTPP, tariffs for palm oil products gets reduced from a minimum of 6% for Canada, 5% for Mexico, and 9% for Peru based on the tariff elimination schedule,” said MPOB director-general Ahmad Parveez Ghulam Kadir.
The elimination of tariffs will improve Malaysia’s palm oil competitiveness in the CPTPP member countries, he added.
Ahmad also said the country’s palm oil industry experienced a better performance this year and the momentum may continue into 2023. FMT
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Indonesia to tighten palm oil exports from January 1 to ensure supply
Indonesia will tighten export rules for palm oil from Jan. 1 by allowing less shipments overseas for every tonne sold domestically, in a move aimed at ensuring there was sufficient domestic supply, a government official said on Friday.
Exporters will be allowed to ship six times their domestic sales volume, less than the current ratio of eight times, according to a new regulation reviewed by Reuters, which was confirmed by an industry official.
Seto said the ratio will be evaluated periodically by considering the domestic situation, including cooking oil availability and prices.
Indonesia earlier this year had a battle to keep cooking oil prices from spiralling out of control and introduced export measures on palm oil products with varying degrees of success to try to ensure supply and bring the price down.
A brief ban on exports of the edible oil from Indonesia shook markets and exacerbated existing global supply concerns, but it also led to ballooning domestic inventory.
Read more at:
https://economictimes.indiatimes.com/news/international/business/indonesia-to-tighten-palm-oil-exports-from-january-1-to-ensure-supply/articleshow/96612802.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst ..
Europe-ASEAN relations: What to expect in 2023
While ASEAN and the EU want to deepen their ties, a raft of disagreements — from the Ukraine conflict to trade protectionism — could make next year a challenging one for both sides.
On December 14, leaders from most European and Southeast Asian countries met for a summit in Brussels for the first time. It was a symbolic display of how far relations have improved in the 45 years of relations between the EU and the 10-member Association of Southeast Asian Nations (ASEAN).
Relations were elevated to a "strategic partnership" in late 2020 and bilateral trade in goods increased by nearly 14% in 2021. And having ended 2022 on a high note, "policymakers in both regions are expected to keep up the upbeat tempo in relations both in terms of content and high-level meetings," said Shada Islam, a Brussels-based commentator on European Union affairs.
Many within Brussels are optimistic that Indonesia, which takes over the annually-rotating chair of the ASEAN bloc next year, will be a reliable partner. It will be the first democracy to lead the bloc for several years, and Indonesian President Joko Widodo has moved to improve his country's relations with the West since entering office in 2014.
"Indonesia's leadership of ASEAN will likely ensure continuity in the current positive trend of EU-ASEAN relations," said William Yuen Yee, a research assistant with the Columbia-Harvard China and the World Program. DW
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Malaysia-CPTPP expected to boost palm oil exports, says MPOB
PETALING JAYA: The Malaysian Palm Oil Board (MPOB) said the country’s ratification of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) last September will boost demand for palm oil products and broaden access to new markets.
“Upon ratification and implementation of the CPTPP, tariffs for palm oil products gets reduced from a minimum of 6% for Canada, 5% for Mexico, and 9% for Peru based on the tariff elimination schedule,” said MPOB director-general Ahmad Parveez Ghulam Kadir.
The elimination of tariffs will improve Malaysia’s palm oil competitiveness in the CPTPP member countries, he added.
Ahmad also said the country’s palm oil industry experienced a better performance this year and the momentum may continue into 2023. FMT
---------
Indonesia to tighten palm oil exports from January 1 to ensure supply
Indonesia will tighten export rules for palm oil from Jan. 1 by allowing less shipments overseas for every tonne sold domestically, in a move aimed at ensuring there was sufficient domestic supply, a government official said on Friday.
Exporters will be allowed to ship six times their domestic sales volume, less than the current ratio of eight times, according to a new regulation reviewed by Reuters, which was confirmed by an industry official.
Seto said the ratio will be evaluated periodically by considering the domestic situation, including cooking oil availability and prices.
Indonesia earlier this year had a battle to keep cooking oil prices from spiralling out of control and introduced export measures on palm oil products with varying degrees of success to try to ensure supply and bring the price down.
A brief ban on exports of the edible oil from Indonesia shook markets and exacerbated existing global supply concerns, but it also led to ballooning domestic inventory.
Read more at:
https://economictimes.indiatimes.com/news/international/business/indonesia-to-tighten-palm-oil-exports-from-january-1-to-ensure-supply/articleshow/96612802.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst ..
December 27, 2022
Zero-deforestation commitments can push agriculture to other rich biomes, study warns
European Parliament and Council agree on new rules to tackle Deforestation
Europe: The Council of the European Union and the European Parliament have mutually agreed upon new rules to tackle the global issue of Deforestation. The new rules will look for global consumers to make wiser consumption choices that do not contribute towards forest degradation. The operators trading certain products in the European Union and exporting from it will have to comply with due diligence rules.
As Marian Jurečka, the Czech Minister of the Environment, stated, “ The European Union largely consumes and trades commodities that significantly contribute to the global scale of Deforestation. With the introduction of new rules, it must be ensured that whenever the customers buy these products, they don’t contribute to further degrading forest ecosystems.
All the countries have been eyeing to protect the environment, including forests and rainforests, and the European Union is readily assuming the responsibility.
The provisional agreement establishes necessary due diligence norms for all operators and traders, who manage the availability and exports of the enlisted items, i.e. palm oil, beef, timber, coffee, cocoa, rubber and soy, along with other derived products such as chocolate, furniture, printed paper and selected palm oil derivatives. Georgia Online
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Indonesia-Awaiting legal basis for red cooking oil factory establishment
Jakarta (ANTARA) - The construction of a red cooking oil factory, which was set for early 2023 in Deli Serdang, North Sumatra, is still pending as a legal basis for its establishment is yet to be formulated.
Cooperatives and Small and Medium Enterprises (SMEs) Minister Teten Masduki delivered the remarks at the “2022 Reflection and 2023 Outlook” event here on Monday.
Masduki said that his ministry is still waiting for the synchronization of the ministerial regulation on the use of funds from the Oil Palm Plantation Fund Management Agency (BPDPKS) for oil palm smallholder cooperatives.
"It (is estimated that) it may take until next month, so in January 2023, the construction can kick off," he added.
As soon as the regulation is complete, the funds owned by oil palm smallholders in the institution can be used for the production of red cooking oil, he informed.
"Because this uses funds owned by oil palm smallholders, which are collected from palm oil exports in the BPDPKS. So, that's the farmer's right. But currently, there are no regulations on their distribution. If the regulation of the Cooperatives and Small and Medium Enterprises Ministry has finished harmonization, this can be resolved," he added. Antara News
Zero-deforestation commitments can push agriculture to other rich biomes, study warns
- Zero-deforestation commitments (ZDCs) made by the palm oil industry and adopted by producers of other crops as well focus on preserving rainforests, while leaving other biomes unprotected.
- New research by the University of York shows that even if current ZDCs are fully met, around 167 million hectares of mostly tropical grassy and dry forest would remain open for agricultural expansion.
- Often confused with degraded areas that emerge after clearing the rainforest, those biomes are actually rich and biodiverse and also play a role in storing and capturing carbon.
- New EU legislation approved in December adds extra protection for rainforests, but could push even more agricultural production to other biomes, most of them in Africa and Latin America. Mongabay
European Parliament and Council agree on new rules to tackle Deforestation
Europe: The Council of the European Union and the European Parliament have mutually agreed upon new rules to tackle the global issue of Deforestation. The new rules will look for global consumers to make wiser consumption choices that do not contribute towards forest degradation. The operators trading certain products in the European Union and exporting from it will have to comply with due diligence rules.
As Marian Jurečka, the Czech Minister of the Environment, stated, “ The European Union largely consumes and trades commodities that significantly contribute to the global scale of Deforestation. With the introduction of new rules, it must be ensured that whenever the customers buy these products, they don’t contribute to further degrading forest ecosystems.
All the countries have been eyeing to protect the environment, including forests and rainforests, and the European Union is readily assuming the responsibility.
The provisional agreement establishes necessary due diligence norms for all operators and traders, who manage the availability and exports of the enlisted items, i.e. palm oil, beef, timber, coffee, cocoa, rubber and soy, along with other derived products such as chocolate, furniture, printed paper and selected palm oil derivatives. Georgia Online
---------
Indonesia-Awaiting legal basis for red cooking oil factory establishment
Jakarta (ANTARA) - The construction of a red cooking oil factory, which was set for early 2023 in Deli Serdang, North Sumatra, is still pending as a legal basis for its establishment is yet to be formulated.
Cooperatives and Small and Medium Enterprises (SMEs) Minister Teten Masduki delivered the remarks at the “2022 Reflection and 2023 Outlook” event here on Monday.
Masduki said that his ministry is still waiting for the synchronization of the ministerial regulation on the use of funds from the Oil Palm Plantation Fund Management Agency (BPDPKS) for oil palm smallholder cooperatives.
"It (is estimated that) it may take until next month, so in January 2023, the construction can kick off," he added.
As soon as the regulation is complete, the funds owned by oil palm smallholders in the institution can be used for the production of red cooking oil, he informed.
"Because this uses funds owned by oil palm smallholders, which are collected from palm oil exports in the BPDPKS. So, that's the farmer's right. But currently, there are no regulations on their distribution. If the regulation of the Cooperatives and Small and Medium Enterprises Ministry has finished harmonization, this can be resolved," he added. Antara News
December 26, 2022
EU continues import of palm oil presumed not associated with deforestation and forest degradation
The European Union in Malaysia drawed attention to Michalis Rokas, European Union Ambassador to Malaysia, expressing his views on EU’s decision not to ban import of palm oil. The statement was released by Free Malaysia Today.
The Ambassador’s thoughts on the matter followed a statement made by the Malaysian Palm Oil Board (MPOB) upon an EU legislative proposal on the availability, and exports, of certain commodities and products associated with deforestation and forest degradation at the European market.
On 6 December, the European Parliament and the Council of the European Union reached a provisional agreement stating deforestation-free and legally produced palm oil will continue to be placed on the EU market.
In other words, the EU will continue to import palm oil – only ensuring that the palm oil is legally produced and not associated with deforestation. Scandasia
---------
OPINION-Indonesian’s strong foreign and international trade policy for EU
President Joko “Jokowi” Widodo has signaled European Union-Indonesia relationships to be at risk with the new Deforestation Regulation, warning that the EU should not attempt to dictate its sustainability standards to ASEAN if it wants to maintain its relationship with Indonesia going forward.
Addressing the special EU-ASEAN summit meeting in Brussels on Dec.15, the President asserted, “There must be no coercion, no more parties who always dictate and assume that my standards are better than yours.”
In our view the regulation on the deforestation label, which will be enforced on palm oil and its derivatives and several other farm commodities in 2023, confirms the EU is finally turning its back on any trade policy that considers itself to be fair and that the bloc simply cannot make its trade policy and its broader external goals coherent. The Jakarta Post
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Ferrero-Savage capitalism; not-so-sweet Nutella exposed
Chocolate-related items bring in billions for the Italian company Ferrero, but how exploitative could the production of cocoa, palm oil, and hazelnuts be?
An investigative report by Der Spiegel pictures Savas, 13 years old, crawling around among the hazelnut bushes on the ground.
The report narrates the story of a boy from south-east Turkey deprived of living a proper childhood. Instead of going to the beach during his summer vacation, he gathers hazelnuts from the steep slopes in the hinterland of the city of Ordu. For ten hours a day, Savas bends, crawls, and carries sacks.
For 22 straight days, he was in gray plastic sandals, a sweaty T-shirt, and with a small injury on his right forearm, according to the report. His devastating health state was reflected on his pale face. As the report pictures it, he sat on the farmer's lawn and looked at the hazelnuts he collected then threw up.
A few weeks later, the farmer would sell the nuts that Savas and the other 15 young seasonal workers collected to a long-established company that supplies Ferrero. Al Mayadeen
EU continues import of palm oil presumed not associated with deforestation and forest degradation
The European Union in Malaysia drawed attention to Michalis Rokas, European Union Ambassador to Malaysia, expressing his views on EU’s decision not to ban import of palm oil. The statement was released by Free Malaysia Today.
The Ambassador’s thoughts on the matter followed a statement made by the Malaysian Palm Oil Board (MPOB) upon an EU legislative proposal on the availability, and exports, of certain commodities and products associated with deforestation and forest degradation at the European market.
On 6 December, the European Parliament and the Council of the European Union reached a provisional agreement stating deforestation-free and legally produced palm oil will continue to be placed on the EU market.
In other words, the EU will continue to import palm oil – only ensuring that the palm oil is legally produced and not associated with deforestation. Scandasia
---------
OPINION-Indonesian’s strong foreign and international trade policy for EU
President Joko “Jokowi” Widodo has signaled European Union-Indonesia relationships to be at risk with the new Deforestation Regulation, warning that the EU should not attempt to dictate its sustainability standards to ASEAN if it wants to maintain its relationship with Indonesia going forward.
Addressing the special EU-ASEAN summit meeting in Brussels on Dec.15, the President asserted, “There must be no coercion, no more parties who always dictate and assume that my standards are better than yours.”
In our view the regulation on the deforestation label, which will be enforced on palm oil and its derivatives and several other farm commodities in 2023, confirms the EU is finally turning its back on any trade policy that considers itself to be fair and that the bloc simply cannot make its trade policy and its broader external goals coherent. The Jakarta Post
---------
Ferrero-Savage capitalism; not-so-sweet Nutella exposed
Chocolate-related items bring in billions for the Italian company Ferrero, but how exploitative could the production of cocoa, palm oil, and hazelnuts be?
An investigative report by Der Spiegel pictures Savas, 13 years old, crawling around among the hazelnut bushes on the ground.
The report narrates the story of a boy from south-east Turkey deprived of living a proper childhood. Instead of going to the beach during his summer vacation, he gathers hazelnuts from the steep slopes in the hinterland of the city of Ordu. For ten hours a day, Savas bends, crawls, and carries sacks.
For 22 straight days, he was in gray plastic sandals, a sweaty T-shirt, and with a small injury on his right forearm, according to the report. His devastating health state was reflected on his pale face. As the report pictures it, he sat on the farmer's lawn and looked at the hazelnuts he collected then threw up.
A few weeks later, the farmer would sell the nuts that Savas and the other 15 young seasonal workers collected to a long-established company that supplies Ferrero. Al Mayadeen
December 23, 2022
Malaysia slams EU deforestation-free law for blocking palm oil market access
KUALA LUMPUR, Dec 23 (Reuters) - Malaysia, the world's second largest palm oil producer, on Friday accused the European Union (EU) of blocking market access of the edible oil with a new law that prevents the sale of commodities linked to deforestation in the 27-country bloc.
The EU earlier this month agreed on a new law that requires companies to produce a due diligence statement showing their supply chains are not contributing to the destruction of forests, or risk hefty fines.
Malaysia's Deputy Prime Minister and Commodities Minister Fadillah Yusof said on Friday this will affect free and fair trade, and adversely impact the global supply chain.
"The Deforestation-Free Products Regulation is a deliberate act by Europe to block market access, hurt small farmers and protect a domestic oilseeds market that is inefficient and cannot compete with the cost of palm oil," he said in a statement. Reuters
----------
The new EU deforestation regulation and its international scope - is your business caught?
The European Commission, Council and European Parliament reached provisional agreement on the new Deforestation Regulation on 6 December 2022, bringing in a raft of restrictions on the sale of cattle, cocoa, coffee, oil palm, rubber, soya and wood (and certain products made from those commodities) in the EU where production is linked to deforestation or is not in line with local laws of the country of production.
Subject to official endorsement by the Parliament and Council, the new regulation will prohibit the use of certain commodities or products associated with deforestation internationally (known as ‘forest risk commodities’) and will introduce mandatory due diligence obligations on companies supplying, exporting or placing on the market these goods in the EU. As we previously reported, companies will have to ensure goods have not been produced on deforested and degraded land, the latter being newly defined and not yet recognised internationally.
In this blog post we outline the key elements of the new regulation:
Who is affected? Lexology
----------
Uganda-Govt to plant 100,000 hectares of oil palm
What you need to know:
The country currently imports all its raw palm oil requirements from mostly Malaysia, but the government in 2021 introduced a Shs200 levy on each litre of cooking oil, and a 10 percent import duty on crude palm oil.
The government has unveiled a plan to plant at least 100,000 hectares of oil palm to meet the increasing demand for edible oils and also substitute imports.
The government is also targeting to increase the growth of sunflower, sesame, and soya beans.
“The government policy is to promote both palm and oil seeds. We want farmers to get involved on a large scale. Our target is to satisfy both immediate consumer demand and also have a robust domestic value chain,” the State Minister for Agriculture, Mr Fred Bwino Kyakulaga, said on Wednesday.
The minister was addressing a three-day stakeholders retreat in Kalangala District where staff from the Ministry of Agriculture, National Agricultural Research Organisation, National Agricultural Advisory Services, academic, and oil palm farmers representatives identified gaps to inform the national plan for the sector. Monitor UG
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December 21, 2022
Understanding China’s palm oil market
Infographic by The Edge Markets
----------
Sri Lanka-Saying Yes to Palm Oil is Saying Yes to Sustainable Growth and Prosperity
Why the ban on palm oil must be immediately reversed if Sri Lanka is to reclaim its growth trajectory
Nation-building and achieving sustainable economic growth are two objectives Sri Lanka has always aimed for. However, due to irrational popular political decisions, we are far from achieving these objectives.
One such irrational and misguided decision is the regrettable and unfortunate ban on the cultivation of oil palms in Sri Lanka. During a recent book launch, the Hon. Ali Sabry PC, Minister of Foreign Affairs, said that the country is in dire economic straits due to non-scientific, illogical decisions taken by successive governments, and that, henceforth, policy must be based on facts, logic and scientific evidence. This is a laudable statement, and we as Sri Lankans should begin to work towards ensuring that we are never again held back by myopic and irrational policies.
The oil palm is presently the most productive crop known to man. While only 2% of total cultivated land, globally, is allocated to its cultivation, palm oil accounts for 35% of the world’s total vegetable oil requirements. Moreover, it is also considered as the single-most versatile plant oil, as apart from its use as a cooking oil, it has uses across an array of products as diverse as skincare creams, shampoos, soaps, detergents, margarine, confectionaries, biscuits, chocolates, bakery products, milk powder and even beverages such as cola. Its versatility cannot be overstated, and with growing populations around the world, the demand for these products, and thus for palm oil, are continually increasing.
Initially, cognizant of the crop’s many benefits, Sri Lanka encouraged Regional Plantation Companies (RPCs) to proactively expand oil palm plantations and invest in research and development. This gave rise to a small but promising local palm oil industry, beginning in the late 60s. Adaderana
---------
Supporting Smallholder Farmers on the Way to a More Sustainable Palm Oil Supply Chain
Henkel, a global leader in consumer goods and adhesive technologies, and the nonprofit Solidaridad have worked together for almost a decade to scale up sustainable palm oil production and help smallholder farmers improve and diversify their incomes. Their work since 2012 set a high bar, which has been raised with a new three-year grant from Henkel brand Dial.
The partnership, which aims to help smallholder farmers in Central and South America earn a living wage while connecting the farmers to a global supply chain, has proven to be beneficial for both partners. “If every partner were like Henkel, we could move much faster in addressing the challenges we face in the world,” said Michaelyn Baur, managing director for Central America and Mexico at Solidaridad, in a recent interview with TriplePundit.
Building a more sustainable palm oil supply chain Triple Pundit
Malaysia slams EU deforestation-free law for blocking palm oil market access
KUALA LUMPUR, Dec 23 (Reuters) - Malaysia, the world's second largest palm oil producer, on Friday accused the European Union (EU) of blocking market access of the edible oil with a new law that prevents the sale of commodities linked to deforestation in the 27-country bloc.
The EU earlier this month agreed on a new law that requires companies to produce a due diligence statement showing their supply chains are not contributing to the destruction of forests, or risk hefty fines.
Malaysia's Deputy Prime Minister and Commodities Minister Fadillah Yusof said on Friday this will affect free and fair trade, and adversely impact the global supply chain.
"The Deforestation-Free Products Regulation is a deliberate act by Europe to block market access, hurt small farmers and protect a domestic oilseeds market that is inefficient and cannot compete with the cost of palm oil," he said in a statement. Reuters
----------
The new EU deforestation regulation and its international scope - is your business caught?
The European Commission, Council and European Parliament reached provisional agreement on the new Deforestation Regulation on 6 December 2022, bringing in a raft of restrictions on the sale of cattle, cocoa, coffee, oil palm, rubber, soya and wood (and certain products made from those commodities) in the EU where production is linked to deforestation or is not in line with local laws of the country of production.
Subject to official endorsement by the Parliament and Council, the new regulation will prohibit the use of certain commodities or products associated with deforestation internationally (known as ‘forest risk commodities’) and will introduce mandatory due diligence obligations on companies supplying, exporting or placing on the market these goods in the EU. As we previously reported, companies will have to ensure goods have not been produced on deforested and degraded land, the latter being newly defined and not yet recognised internationally.
In this blog post we outline the key elements of the new regulation:
Who is affected? Lexology
----------
Uganda-Govt to plant 100,000 hectares of oil palm
What you need to know:
The country currently imports all its raw palm oil requirements from mostly Malaysia, but the government in 2021 introduced a Shs200 levy on each litre of cooking oil, and a 10 percent import duty on crude palm oil.
The government has unveiled a plan to plant at least 100,000 hectares of oil palm to meet the increasing demand for edible oils and also substitute imports.
The government is also targeting to increase the growth of sunflower, sesame, and soya beans.
“The government policy is to promote both palm and oil seeds. We want farmers to get involved on a large scale. Our target is to satisfy both immediate consumer demand and also have a robust domestic value chain,” the State Minister for Agriculture, Mr Fred Bwino Kyakulaga, said on Wednesday.
The minister was addressing a three-day stakeholders retreat in Kalangala District where staff from the Ministry of Agriculture, National Agricultural Research Organisation, National Agricultural Advisory Services, academic, and oil palm farmers representatives identified gaps to inform the national plan for the sector. Monitor UG
---------
December 21, 2022
Understanding China’s palm oil market
Infographic by The Edge Markets
----------
Sri Lanka-Saying Yes to Palm Oil is Saying Yes to Sustainable Growth and Prosperity
Why the ban on palm oil must be immediately reversed if Sri Lanka is to reclaim its growth trajectory
Nation-building and achieving sustainable economic growth are two objectives Sri Lanka has always aimed for. However, due to irrational popular political decisions, we are far from achieving these objectives.
One such irrational and misguided decision is the regrettable and unfortunate ban on the cultivation of oil palms in Sri Lanka. During a recent book launch, the Hon. Ali Sabry PC, Minister of Foreign Affairs, said that the country is in dire economic straits due to non-scientific, illogical decisions taken by successive governments, and that, henceforth, policy must be based on facts, logic and scientific evidence. This is a laudable statement, and we as Sri Lankans should begin to work towards ensuring that we are never again held back by myopic and irrational policies.
The oil palm is presently the most productive crop known to man. While only 2% of total cultivated land, globally, is allocated to its cultivation, palm oil accounts for 35% of the world’s total vegetable oil requirements. Moreover, it is also considered as the single-most versatile plant oil, as apart from its use as a cooking oil, it has uses across an array of products as diverse as skincare creams, shampoos, soaps, detergents, margarine, confectionaries, biscuits, chocolates, bakery products, milk powder and even beverages such as cola. Its versatility cannot be overstated, and with growing populations around the world, the demand for these products, and thus for palm oil, are continually increasing.
Initially, cognizant of the crop’s many benefits, Sri Lanka encouraged Regional Plantation Companies (RPCs) to proactively expand oil palm plantations and invest in research and development. This gave rise to a small but promising local palm oil industry, beginning in the late 60s. Adaderana
---------
Supporting Smallholder Farmers on the Way to a More Sustainable Palm Oil Supply Chain
Henkel, a global leader in consumer goods and adhesive technologies, and the nonprofit Solidaridad have worked together for almost a decade to scale up sustainable palm oil production and help smallholder farmers improve and diversify their incomes. Their work since 2012 set a high bar, which has been raised with a new three-year grant from Henkel brand Dial.
The partnership, which aims to help smallholder farmers in Central and South America earn a living wage while connecting the farmers to a global supply chain, has proven to be beneficial for both partners. “If every partner were like Henkel, we could move much faster in addressing the challenges we face in the world,” said Michaelyn Baur, managing director for Central America and Mexico at Solidaridad, in a recent interview with TriplePundit.
Building a more sustainable palm oil supply chain Triple Pundit
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December 20, 2022
Malaysia-Palm oil industry must be ready to accept new technology changes, says Fadillah
KUALA LUMPUR (Dec 20): The palm oil industry must always be prepared to embrace changes in terms of new technologies amid these challenging times, Deputy Prime Minister Datuk Seri Fadillah Yusof said.
Fadillah, who is also the plantation and commodities minister, said this includes the adoption of the Fourth Industrial Revolution concept, and the usage of artificial intelligence and the Internet of things, such as digitalisation and automation technologies to improve the current manufacturing process.
“The concept of smart palm oil mills based on zero discharge is the direction of the palm oil industry, and this can give a new dimension in the manufacturing sector, especially in terms of efficiency and continuous operational monitoring and being user-friendly,” he said at the opening of the National Seminar on Oil Palm Milling, Refining, Environment and Quality 2022 here on Tuesday (Dec 20). The Edge Markets
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Malaysia-Shortage of labour in palm oil sector to ease next year, says MPOB DG
KUALA LUMPUR: Acute labour shortages impacting the domestic palm oil sector will not be fully resolved next year, despite industry players and government agencies shifting their attention to other countries for labour resources.
Malaysia Palm Oil Board (MPOB) director-general Datuk Dr Ahmad Parveez Ghulam Kadir said the situation would likely improve next year as the board and the government are already heading beyond Indonesia for labour, namely India, Nepal and Bangladesh.
"Although we do not see the issue being completely resolved next year, we are trying our best to resolve the situation by diversifying our focus into other countries," he told reporters after the launch of the Malaysia Palm Oil Board's (MPOB) National Seminar on Oil Palm Milling, Refining, Environment and Quality (POMREQ) 2022 here today.
Dr Ahmad Parveez said India is currently developing its palm oil industry as the country still imports 60 per cent of crude palm oil to meet the domestic demand. New Straits Times
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India-Oil palm will yield higher benefits, says Harish Rao
Oil palm would offer higher yields and higher income for farmers, said Finance and Health Minister T.Harish Rao, adding that there will be an opportunity for intercrops. He also directed officials concerned to encourage farmers to take up oil palm cultivation.
In a teleconference here on Monday, Mr. Harish Rao said with abundant water from Kaleshwaram, farmers can get more benefits through the crop, for three to four decades.
The officials informed the Minister that that crop cultivation was taken up on about 6,300 acres and the remaining 4,000-acre target would be completed in the next three months. They said farmers can cut the crop every 15 days and earn up to ₹30,000 a month. The Hindu
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Liberia: Supporting Small-Scale Oil Palm Farmers to Reduce Poverty
.... The small-scale oil palm sector of Liberia is critical for jobs creation and the improvement of the country’s food security. But, many smallholder oil palm farmers and processors are still lacking or have limited access to support to increase in productivity.
Jeff Boakai and his wife Mary now own an industrial mini oil palm facility in Foyah District, Lofa County to supply the market.
The couple began their dream for agriculture in 1990 when the Liberian civil war just started. With a little knowledge of agriculture skills and finance, they ventured into oil palm production for livelihood income using traditional practices.
Though their journey, like other smallholder farmers in the sector, was prolonged with many days of struggle to expand production with little resources, after a decade of staying in agriculture, the story of Jeff and his family as small scale oil palm farmers has changed.
The small-scale oil palm sector of Liberia is critical for jobs creation and the improvement of the country’s food security. But, many smallholder oil palm farmers and processors are still lacking or having limited access to support to increase in productivity.
Jeff told the Daily Observer that the process of becoming a small-scale oil palm farmer in his district is like a dream come true. Liberian Observer
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Brazilian palm oil firm, BBF, ramps up violence against Indigenous peoples in final days of Bolsonaro rule
Cargill and others suspend trade with BBF in response, Global Witness calls on firms to permanently terminate purchases
20th December 2022, London – Video evidence and testimony from a Brazilian Indigenous community in the state of Para, has revealed astepping up of violent attempts by Brasil Biofuels (BBF), a local palm oil producer that sells to major international brands, to forcibly evict the community from disputed lands, in the final days of Bolsonaro’s Presidency.
In response Cargill have told Global Witness they are suspending purchases from BBF, whilst Kellogg, Hersheys and other international brands have confirmed that as they supply directly from Cargill, they too are not currently purchasing BBF palm oil. PepsiCo and Mondelez did not respond to Global Witness calls to cease trading with BBF. Whilst Global Witness welcomes this decision from Cargill and others, they are being called upon to permanently terminate trading with BBF. Global Witness
Malaysia-Palm oil industry must be ready to accept new technology changes, says Fadillah
KUALA LUMPUR (Dec 20): The palm oil industry must always be prepared to embrace changes in terms of new technologies amid these challenging times, Deputy Prime Minister Datuk Seri Fadillah Yusof said.
Fadillah, who is also the plantation and commodities minister, said this includes the adoption of the Fourth Industrial Revolution concept, and the usage of artificial intelligence and the Internet of things, such as digitalisation and automation technologies to improve the current manufacturing process.
“The concept of smart palm oil mills based on zero discharge is the direction of the palm oil industry, and this can give a new dimension in the manufacturing sector, especially in terms of efficiency and continuous operational monitoring and being user-friendly,” he said at the opening of the National Seminar on Oil Palm Milling, Refining, Environment and Quality 2022 here on Tuesday (Dec 20). The Edge Markets
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Malaysia-Shortage of labour in palm oil sector to ease next year, says MPOB DG
KUALA LUMPUR: Acute labour shortages impacting the domestic palm oil sector will not be fully resolved next year, despite industry players and government agencies shifting their attention to other countries for labour resources.
Malaysia Palm Oil Board (MPOB) director-general Datuk Dr Ahmad Parveez Ghulam Kadir said the situation would likely improve next year as the board and the government are already heading beyond Indonesia for labour, namely India, Nepal and Bangladesh.
"Although we do not see the issue being completely resolved next year, we are trying our best to resolve the situation by diversifying our focus into other countries," he told reporters after the launch of the Malaysia Palm Oil Board's (MPOB) National Seminar on Oil Palm Milling, Refining, Environment and Quality (POMREQ) 2022 here today.
Dr Ahmad Parveez said India is currently developing its palm oil industry as the country still imports 60 per cent of crude palm oil to meet the domestic demand. New Straits Times
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India-Oil palm will yield higher benefits, says Harish Rao
Oil palm would offer higher yields and higher income for farmers, said Finance and Health Minister T.Harish Rao, adding that there will be an opportunity for intercrops. He also directed officials concerned to encourage farmers to take up oil palm cultivation.
In a teleconference here on Monday, Mr. Harish Rao said with abundant water from Kaleshwaram, farmers can get more benefits through the crop, for three to four decades.
The officials informed the Minister that that crop cultivation was taken up on about 6,300 acres and the remaining 4,000-acre target would be completed in the next three months. They said farmers can cut the crop every 15 days and earn up to ₹30,000 a month. The Hindu
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Liberia: Supporting Small-Scale Oil Palm Farmers to Reduce Poverty
.... The small-scale oil palm sector of Liberia is critical for jobs creation and the improvement of the country’s food security. But, many smallholder oil palm farmers and processors are still lacking or have limited access to support to increase in productivity.
Jeff Boakai and his wife Mary now own an industrial mini oil palm facility in Foyah District, Lofa County to supply the market.
The couple began their dream for agriculture in 1990 when the Liberian civil war just started. With a little knowledge of agriculture skills and finance, they ventured into oil palm production for livelihood income using traditional practices.
Though their journey, like other smallholder farmers in the sector, was prolonged with many days of struggle to expand production with little resources, after a decade of staying in agriculture, the story of Jeff and his family as small scale oil palm farmers has changed.
The small-scale oil palm sector of Liberia is critical for jobs creation and the improvement of the country’s food security. But, many smallholder oil palm farmers and processors are still lacking or having limited access to support to increase in productivity.
Jeff told the Daily Observer that the process of becoming a small-scale oil palm farmer in his district is like a dream come true. Liberian Observer
---------
Brazilian palm oil firm, BBF, ramps up violence against Indigenous peoples in final days of Bolsonaro rule
Cargill and others suspend trade with BBF in response, Global Witness calls on firms to permanently terminate purchases
20th December 2022, London – Video evidence and testimony from a Brazilian Indigenous community in the state of Para, has revealed astepping up of violent attempts by Brasil Biofuels (BBF), a local palm oil producer that sells to major international brands, to forcibly evict the community from disputed lands, in the final days of Bolsonaro’s Presidency.
In response Cargill have told Global Witness they are suspending purchases from BBF, whilst Kellogg, Hersheys and other international brands have confirmed that as they supply directly from Cargill, they too are not currently purchasing BBF palm oil. PepsiCo and Mondelez did not respond to Global Witness calls to cease trading with BBF. Whilst Global Witness welcomes this decision from Cargill and others, they are being called upon to permanently terminate trading with BBF. Global Witness
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December 19, 2022
EU-EBB welcomes court decision on Indonesian biodiesel imports
The European Biodiesel Board has welcomed the European General Court decision to dismiss the actions for annulment initiated by three Indonesian biodiesel producers following the EU imposition of definitive countervailing duties on biodiesel imports from Indonesia.
After a two-year litigation process, the EU General Court rejected all arguments brought forward by Indonesian exporters to justify their request to annul the countervailing duties imposed by the EU on biodiesel imports from Indonesia.
Regarding the claim that the European Commission (EC) failed to consider all relevant data to establish undercutting, the court confirmed that the Indonesian exporters had information that enabled them to understand the EC's calculation, and that the EC did not commit a manifest error of assessment.
Moreover, since there was no error in the calculation of price undercutting, the Court ruled that the EC could not be criticised for taking undercutting into account for the purpose of assessing its effects on the Union industry. Biofuels News
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Indonesia and US forge $50m ‘carbon sink’ partnership
Indonesia and the United States have committed to launching a new climate partnership early next year with funding of up to US$50 million to help Indonesia achieve its forestry carbon sink goal by 2030.
In May, the Environment and Forestry Ministry and the US Agency for International Development (USAID) signed a memorandum of understanding (MoU) to support Indonesia’s Forestry and Other Land Use (FOLU) Net Sink 2030 program.
The commitment to the new climate partnership follows up of the White House’s Fact Sheet: Strengthening the US-Indonesia Strategic Partnership published on Nov. 13, which was also announced at the bilateral meeting between President Joko “Jokowi” Widodo and President Joe Biden on the sidelines of the Group of Twenty (G20) Leaders’ Summit in Bali. The Jakarta Post
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Egypt, Malaysia in talks for $30mln palm oil production project
Under the first stage, a storage facility for Malaysian palm oil packaging will be established with investments of $10 million
A Malaysian company is currently in talks with Egypt to establish a two-stage palm oil production project with investments totalling $30 million, the Middle East News Agency (MENA) cited the Egyptian Commercial Service’s (ECS) Head, Yahya Elwathik Bellah.
Under the first stage, a storage facility for Malaysian palm oil packaging will be established with investments of $10 million. This facility will be an export hub to African and neighbouring countries.
The official added that the second stage includes the construction of a Malaysian oil refinery plant with investments worth $20 million in the Suez Canal Economic Zone (SCZONE). Zawya
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December 17, 2022
Latin America emerging as hot spot for more climate-friendly jet fuel
MONTREAL/BOGOTA Dec 16 (Reuters) - Latin America is drawing early investment for jet fuel produced from materials like forest residues and palm oil as emission-conscious airlines scour emerging markets for less-polluting fuel to power flights, industry executives say.
While most sustainable aviation fuel, or SAF, is produced in the United States, Europe, and Singapore, Latin America is emerging as a budding market. That demand is driving early investments and reviving debate over palm oil, which has faced boycotts in southeast Asia over labor concerns and environmental grievances.
The push comes as industry faces fresh pressure to curb pollution, with the United Nation's aviation agency targeting net zero emissions by 2050 and negotiators scrambling to reach an agreement on Monday at a Montreal summit to protect nature.
While SAF is not currently produced in Latin America, Honeywell's (HON.O) Performance Materials and Technologies (PMT) unit is talking to companies about 12 proposed SAF projects in the region valued in the billions of dollars, up from three projects in 2018, an executive told Reuters.
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Nigeria-Oil palm farmers set to plant over 37.5m oil palm trees in 27 States
THE oil palm farmers under the auspices of National Palm Produce Association of Nigeria, NPPAN, disclosed move to plant over 37.5 million oil palm trees in 27 States.
This was made known to Saturday Vanguard by the National President, NPPAN, Alphonsus Inyang, while speaking on the untapped gigantic potential of oil palm subsector.
Inyang also pointed that Nigeria’s oil palm production peaked at 789,000 tonnes in second quarter of 2022, the same period Indonesia produced over 23 million tonnes, which is 90 per cent.
He said: “In 2022 only 25,000 hybrid Oil palm seedlings were distributed to NPPAN members across the country during the flag off of 2022 planting season by the association. This was done without assistance from any quarters.
“We have developed a plan named ‘Oil Palm Sector Development Plan 2023-27’ to plant over 37.5 million palm trees in 27 States of the Federation.
“There was an increase in volume of production of palm oil in the first and second quarters of 2022 compared to same period in 2021 due to increased interest in the sector by entrepreneurs, production picked at 789,000 tons based on data from dependable sources.
“This is compared to Indonesia which produced over 23 million tonnes in the same period and 90 per cent of that volume exported to other parts of the world including Nigeria. Vanguard NGR
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EU has no choice but to accept a more powerful ASEAN
Just one month after chairing the internationally applauded Group of 20 Summit, bringing together the leaders of the world’s largest 20 economies in Bali, President Joko “Jokowi” Widodo played a leadership role for the 10-member ASEAN during the summit to commemorate 45 years of its relationship with the 28-member European Union in Brussels on Wednesday.
Indonesia will formally chair ASEAN next year.
An ordinary Indonesian friend deciphered the President’s message as follows: We thank the Europeans for being very helpful to us when we were still poor, although some of them behaved with a colonial-master mentality. You taught us so many things, built so many infrastructures and helped our economy grow. But now we are developed enough. We want strictly equal relations. And as we have paid all our debts and obligations, please stop dictating on how to live! The Jakarta Post
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Malaysia-Fadillah urged to address oil palm concern, unresolved issues
MIRI (Dec 17): Deputy Prime Minister Dato Sri Fadillah Yusof should urgently address concerns and unresolved issues affecting all Dayak oil palm smallholders in Sarawak, said Sarawak Dayak Oil Palm Planters Association (Doppa) president Napoleon R. Ningkos.
Topping the list would be the national NDPE (No Deforestation, No Peat, and No Exploitation) policy cut-off date.
“Doppa hopes Fadillah, who is Minister of Plantations and Commodities will establish a system that will allow smallholders in Sarawak to continue cultivating their NCR (native customary rights) land sustainably after this cut-off date, “he said in a statement.
According to him, the association will continue to encourage Dayaks and the indigenous community to continue planting oil palm as a way of life and in support of the state government’s objective to improve rural socio-economic.
To confirm the land status of smallholders in Sarawak, DOPPA has pledged to collaborate with the state government through the Ministry of Food Industry, Commodity and Regional Development (M-FICORD). The Borneo Post
EU supply chain law isn’t enough to keep nature safe
EU supply chain law isn’t enough to keep nature safe
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EU supply chain law isn’t enough to keep nature safe
The regulation will help consumers avoid commodities that cause deforestation and other harms but the countries where goods are produced must be brought on board
Julia Christian is a campaigner at Fern, a forests and rights NGO.
“The fate of the entire living world” is at stake at the COP15 biodiversity summit in Montreal this week, according to scientists.
While representatives from 193 governments negotiate an agreement to protect the Earth’s environment, earlier this month in Brussels, the European Union (EU) agreed on a law which could play an important part in doing so.
The timing of the final agreement on the EU’s regulation on deforestation-free products was no accident. On the eve of COP15, the EU intended to send a signal to other nations that the world’s largest trading bloc is leading the way in the fight for a habitable planet.
The new EU law is the culmination of years of campaigning, intense political debate and behind the scenes lobbying. It will mean that, for the first time, companies selling commodities on the EU market which contribute to global deforestation will be punished for it.
Irresistible momentum
Whether it’s palm oil from Indonesia, beef or soy from Brazil, cocoa from West Africa, or several other specific commodities, companies will have to produce due diligence statements proving that their supply chains are deforestation-free - or face hefty fines. Context News
EU-EBB welcomes court decision on Indonesian biodiesel imports
The European Biodiesel Board has welcomed the European General Court decision to dismiss the actions for annulment initiated by three Indonesian biodiesel producers following the EU imposition of definitive countervailing duties on biodiesel imports from Indonesia.
After a two-year litigation process, the EU General Court rejected all arguments brought forward by Indonesian exporters to justify their request to annul the countervailing duties imposed by the EU on biodiesel imports from Indonesia.
Regarding the claim that the European Commission (EC) failed to consider all relevant data to establish undercutting, the court confirmed that the Indonesian exporters had information that enabled them to understand the EC's calculation, and that the EC did not commit a manifest error of assessment.
Moreover, since there was no error in the calculation of price undercutting, the Court ruled that the EC could not be criticised for taking undercutting into account for the purpose of assessing its effects on the Union industry. Biofuels News
---------
Indonesia and US forge $50m ‘carbon sink’ partnership
Indonesia and the United States have committed to launching a new climate partnership early next year with funding of up to US$50 million to help Indonesia achieve its forestry carbon sink goal by 2030.
In May, the Environment and Forestry Ministry and the US Agency for International Development (USAID) signed a memorandum of understanding (MoU) to support Indonesia’s Forestry and Other Land Use (FOLU) Net Sink 2030 program.
The commitment to the new climate partnership follows up of the White House’s Fact Sheet: Strengthening the US-Indonesia Strategic Partnership published on Nov. 13, which was also announced at the bilateral meeting between President Joko “Jokowi” Widodo and President Joe Biden on the sidelines of the Group of Twenty (G20) Leaders’ Summit in Bali. The Jakarta Post
----------
Egypt, Malaysia in talks for $30mln palm oil production project
Under the first stage, a storage facility for Malaysian palm oil packaging will be established with investments of $10 million
A Malaysian company is currently in talks with Egypt to establish a two-stage palm oil production project with investments totalling $30 million, the Middle East News Agency (MENA) cited the Egyptian Commercial Service’s (ECS) Head, Yahya Elwathik Bellah.
Under the first stage, a storage facility for Malaysian palm oil packaging will be established with investments of $10 million. This facility will be an export hub to African and neighbouring countries.
The official added that the second stage includes the construction of a Malaysian oil refinery plant with investments worth $20 million in the Suez Canal Economic Zone (SCZONE). Zawya
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December 17, 2022
Latin America emerging as hot spot for more climate-friendly jet fuel
MONTREAL/BOGOTA Dec 16 (Reuters) - Latin America is drawing early investment for jet fuel produced from materials like forest residues and palm oil as emission-conscious airlines scour emerging markets for less-polluting fuel to power flights, industry executives say.
While most sustainable aviation fuel, or SAF, is produced in the United States, Europe, and Singapore, Latin America is emerging as a budding market. That demand is driving early investments and reviving debate over palm oil, which has faced boycotts in southeast Asia over labor concerns and environmental grievances.
The push comes as industry faces fresh pressure to curb pollution, with the United Nation's aviation agency targeting net zero emissions by 2050 and negotiators scrambling to reach an agreement on Monday at a Montreal summit to protect nature.
While SAF is not currently produced in Latin America, Honeywell's (HON.O) Performance Materials and Technologies (PMT) unit is talking to companies about 12 proposed SAF projects in the region valued in the billions of dollars, up from three projects in 2018, an executive told Reuters.
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Nigeria-Oil palm farmers set to plant over 37.5m oil palm trees in 27 States
THE oil palm farmers under the auspices of National Palm Produce Association of Nigeria, NPPAN, disclosed move to plant over 37.5 million oil palm trees in 27 States.
This was made known to Saturday Vanguard by the National President, NPPAN, Alphonsus Inyang, while speaking on the untapped gigantic potential of oil palm subsector.
Inyang also pointed that Nigeria’s oil palm production peaked at 789,000 tonnes in second quarter of 2022, the same period Indonesia produced over 23 million tonnes, which is 90 per cent.
He said: “In 2022 only 25,000 hybrid Oil palm seedlings were distributed to NPPAN members across the country during the flag off of 2022 planting season by the association. This was done without assistance from any quarters.
“We have developed a plan named ‘Oil Palm Sector Development Plan 2023-27’ to plant over 37.5 million palm trees in 27 States of the Federation.
“There was an increase in volume of production of palm oil in the first and second quarters of 2022 compared to same period in 2021 due to increased interest in the sector by entrepreneurs, production picked at 789,000 tons based on data from dependable sources.
“This is compared to Indonesia which produced over 23 million tonnes in the same period and 90 per cent of that volume exported to other parts of the world including Nigeria. Vanguard NGR
---------
EU has no choice but to accept a more powerful ASEAN
Just one month after chairing the internationally applauded Group of 20 Summit, bringing together the leaders of the world’s largest 20 economies in Bali, President Joko “Jokowi” Widodo played a leadership role for the 10-member ASEAN during the summit to commemorate 45 years of its relationship with the 28-member European Union in Brussels on Wednesday.
Indonesia will formally chair ASEAN next year.
An ordinary Indonesian friend deciphered the President’s message as follows: We thank the Europeans for being very helpful to us when we were still poor, although some of them behaved with a colonial-master mentality. You taught us so many things, built so many infrastructures and helped our economy grow. But now we are developed enough. We want strictly equal relations. And as we have paid all our debts and obligations, please stop dictating on how to live! The Jakarta Post
---------
Malaysia-Fadillah urged to address oil palm concern, unresolved issues
MIRI (Dec 17): Deputy Prime Minister Dato Sri Fadillah Yusof should urgently address concerns and unresolved issues affecting all Dayak oil palm smallholders in Sarawak, said Sarawak Dayak Oil Palm Planters Association (Doppa) president Napoleon R. Ningkos.
Topping the list would be the national NDPE (No Deforestation, No Peat, and No Exploitation) policy cut-off date.
“Doppa hopes Fadillah, who is Minister of Plantations and Commodities will establish a system that will allow smallholders in Sarawak to continue cultivating their NCR (native customary rights) land sustainably after this cut-off date, “he said in a statement.
According to him, the association will continue to encourage Dayaks and the indigenous community to continue planting oil palm as a way of life and in support of the state government’s objective to improve rural socio-economic.
To confirm the land status of smallholders in Sarawak, DOPPA has pledged to collaborate with the state government through the Ministry of Food Industry, Commodity and Regional Development (M-FICORD). The Borneo Post
EU supply chain law isn’t enough to keep nature safe
EU supply chain law isn’t enough to keep nature safe
---------
EU supply chain law isn’t enough to keep nature safe
The regulation will help consumers avoid commodities that cause deforestation and other harms but the countries where goods are produced must be brought on board
Julia Christian is a campaigner at Fern, a forests and rights NGO.
“The fate of the entire living world” is at stake at the COP15 biodiversity summit in Montreal this week, according to scientists.
While representatives from 193 governments negotiate an agreement to protect the Earth’s environment, earlier this month in Brussels, the European Union (EU) agreed on a law which could play an important part in doing so.
The timing of the final agreement on the EU’s regulation on deforestation-free products was no accident. On the eve of COP15, the EU intended to send a signal to other nations that the world’s largest trading bloc is leading the way in the fight for a habitable planet.
The new EU law is the culmination of years of campaigning, intense political debate and behind the scenes lobbying. It will mean that, for the first time, companies selling commodities on the EU market which contribute to global deforestation will be punished for it.
Irresistible momentum
Whether it’s palm oil from Indonesia, beef or soy from Brazil, cocoa from West Africa, or several other specific commodities, companies will have to produce due diligence statements proving that their supply chains are deforestation-free - or face hefty fines. Context News
December 16, 2022
Indonesia-Jokowi sticks up for palm oil, nickel policy at EU-ASEAN summit
President Joko “Jokowi” Widodo has taken a more outspoken stance against the European Union’s efforts to impose its own sustainability standards on trade with ASEAN, insisting at a summit on Wednesday that it would have to treat the bloc as an equal if it wanted to build a better partnership.
His remarks, delivered at a special EU-ASEAN Summit to celebrate 45 years of their dialogue partnership, comes amid disagreements over EU environmental and trade policies, as well as efforts to conclude a trade deal that has languished for 15 years.
Southeast Asia, Jokowi said, had become a world economic powerhouse and so a partnership with ASEAN would benefit the EU. But going forward, he asserted, Europe would have to let ASEAN nations to do what was necessary to develop their own economies. The Jakarta Post
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Indonesia to implement mandatory 35% biodiesel blending starting Jan 1, 2023
JAKARTA : Indonesia is set to raise mandatory biodiesel blending to 35 per cent starting January 1, 2023, to reduce fuel imports amid high global energy prices and to shift to cleaner energy, the energy ministry said on Friday.
The world's biggest palm oil producer has since 2020 implemented the B30 programme, which mandates fossil gasoil to be blended with 30 per cent palm oil-based fuel, and has been planning to increase the use of palm-based fuel.
"The estimated demand for biodiesel to support B35 implementation is 13.15 million kilolitres, or around a 19 per cent increase compared to 2022 allocation of 11.03 million kilolitres," energy ministry spokesperson Agung Pribadi said in a statement on Friday.
Indonesia is estimated to consume 37.58 million kilolitres of diesel next year, of which 35 per cent will be supplied by palm-based biodiesel.
The country's biodiesel industry has an installed capacity of 16.65 million kilolitres, the energy ministry said.
The energy ministry also set a new specification to improve the standards for biodiesel to assure consumers that higher biodiesel blending would not affect engine performance. Channel News Asia
Indonesia-Jokowi sticks up for palm oil, nickel policy at EU-ASEAN summit
President Joko “Jokowi” Widodo has taken a more outspoken stance against the European Union’s efforts to impose its own sustainability standards on trade with ASEAN, insisting at a summit on Wednesday that it would have to treat the bloc as an equal if it wanted to build a better partnership.
His remarks, delivered at a special EU-ASEAN Summit to celebrate 45 years of their dialogue partnership, comes amid disagreements over EU environmental and trade policies, as well as efforts to conclude a trade deal that has languished for 15 years.
Southeast Asia, Jokowi said, had become a world economic powerhouse and so a partnership with ASEAN would benefit the EU. But going forward, he asserted, Europe would have to let ASEAN nations to do what was necessary to develop their own economies. The Jakarta Post
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Indonesia to implement mandatory 35% biodiesel blending starting Jan 1, 2023
JAKARTA : Indonesia is set to raise mandatory biodiesel blending to 35 per cent starting January 1, 2023, to reduce fuel imports amid high global energy prices and to shift to cleaner energy, the energy ministry said on Friday.
The world's biggest palm oil producer has since 2020 implemented the B30 programme, which mandates fossil gasoil to be blended with 30 per cent palm oil-based fuel, and has been planning to increase the use of palm-based fuel.
"The estimated demand for biodiesel to support B35 implementation is 13.15 million kilolitres, or around a 19 per cent increase compared to 2022 allocation of 11.03 million kilolitres," energy ministry spokesperson Agung Pribadi said in a statement on Friday.
Indonesia is estimated to consume 37.58 million kilolitres of diesel next year, of which 35 per cent will be supplied by palm-based biodiesel.
The country's biodiesel industry has an installed capacity of 16.65 million kilolitres, the energy ministry said.
The energy ministry also set a new specification to improve the standards for biodiesel to assure consumers that higher biodiesel blending would not affect engine performance. Channel News Asia
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December 15, 2022
Viewpoint: Asian biofuels breaking away from Europe
Europe could lose its hegemony over biofuel feedstocks in the Asia-Pacific because of increased competition.
EU demand is being hit by recession fears, uncertain diesel demand and possible mandate changes.
Meanwhile, biodiesel output is rising in Asia, not least with Finnish producer Neste due to complete its 1.3mn t/yr hydro-treated vegetable oil (HVO) and sustainable aviation fuel (SAF) expansion in Singapore, bringing its total capacity to 2.6mn t/yr by March 2023.
In China, Oriental Energy's 1mn t/yr SAF refinery and 300,000 t/yr of HVO capacity from Zhuoyue and Shandong High Speed Renewable Energy will come online in 2023.
Asia-Pacific demand will also proliferate despite incentives lagging the rest of the world.
South Korea increased its biofuels mandate for road transport from 3pc to 3.5pc from July 2022, to 4pc from 2024 and eventually to 8pc by 2030.
Bio-bunkering in the world's largest bunkering hub Singapore is gathering pace despite no mandate for its use, with around 70,000t of biofuels having loaded onto ocean-going vehicles in the first three quarters of 2022.
Shippers have been trialling B24 blends to decarbonise their fleets, in an effort to meet International Maritime Organisation targets of 40pc carbon intensity reduction by 2030 from 2008 levels. Argus Media
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Indonesia increases biodiesel mandate to B35
Indonesia has announced plans to implement a 35% (B35) biodiesel fuel blend program as early as January 2023 in response to stubbornly high crude oil prices. This will increase domestic Indonesian palm oil demand, providing support for palm oil prices, and, in turn, other oilseeds in the vegetable oil complex, such as canola.
According to the Indonesian palm oil board, Indonesia’s 2022 production of palm oil is expected to reach 46.5mmt, with 30.9mmt exported to the world, representing 66% of production. 2023 production is forecast to rise 1.6mmt(3%) to 48.1mmt, and exports to increase 2.5mmt to 33.5mmt.
The expectation that Indonesia will implement a 5% increase in it’s biodiesel fuel blending mandate to 35% (B35) in January 2023 will have the impact of increasing domestic usage of palm oil within the country, and help keep a lid on international exports volumes in the face of rising production. The Indonesian government has stated that part of the impetus behind the change is the expectation of a continued environment of elevated crude oil prices for the foreseeable future, and an intent to both reduce fuel import costs, and reduce net greenhouse gas emissions for the country.
In addition, by increasing palm oil demand; the mandates also support palm oil prices for producers, giving the industry a solid boost. Mercado
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Malaysia-Premier: Palm oil sludge to raise commodity’s value, enable sustainable circular economy
KUCHING (Dec 15): Palm oil sludge can be used for the solar panel industry, giving the industry the opportunity to be part of a sustainable circular economy, said Premier of Sarawak Datuk Patinggi Tan Sri Abang Johari Tun Openg.
He explained palm oil sludge can be used to protect the film on solar panels and called on industry players to explore this avenue.
“You plant palm oil, you produce crude palm oil, you also produce biomass and at the same time you also produce sludge. This sludge has a value.
“When people manufacture solar panels, where solar absorbs energy from the sun and uses the energy for other purposes,” he said at the 10th Premier of Sarawak Environmental Award here last night.
According to him, new technology to protect the film of solar panels requires palm oil sludge.
He said this meant palm oil sludge, which was regarded as useless and discarded, could be reused and in turn this would produce energy that will be used by the industry itself, continuing the cycle and becoming a circular economy.
“I believe our palm oil’s value will be recognised, including in the EU, if we have the ecosystem. I hope this is an example where we can be innovative and produce products that are sustainable,” he said. The Borneo Post
Viewpoint: Asian biofuels breaking away from Europe
Europe could lose its hegemony over biofuel feedstocks in the Asia-Pacific because of increased competition.
EU demand is being hit by recession fears, uncertain diesel demand and possible mandate changes.
Meanwhile, biodiesel output is rising in Asia, not least with Finnish producer Neste due to complete its 1.3mn t/yr hydro-treated vegetable oil (HVO) and sustainable aviation fuel (SAF) expansion in Singapore, bringing its total capacity to 2.6mn t/yr by March 2023.
In China, Oriental Energy's 1mn t/yr SAF refinery and 300,000 t/yr of HVO capacity from Zhuoyue and Shandong High Speed Renewable Energy will come online in 2023.
Asia-Pacific demand will also proliferate despite incentives lagging the rest of the world.
South Korea increased its biofuels mandate for road transport from 3pc to 3.5pc from July 2022, to 4pc from 2024 and eventually to 8pc by 2030.
Bio-bunkering in the world's largest bunkering hub Singapore is gathering pace despite no mandate for its use, with around 70,000t of biofuels having loaded onto ocean-going vehicles in the first three quarters of 2022.
Shippers have been trialling B24 blends to decarbonise their fleets, in an effort to meet International Maritime Organisation targets of 40pc carbon intensity reduction by 2030 from 2008 levels. Argus Media
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Indonesia increases biodiesel mandate to B35
Indonesia has announced plans to implement a 35% (B35) biodiesel fuel blend program as early as January 2023 in response to stubbornly high crude oil prices. This will increase domestic Indonesian palm oil demand, providing support for palm oil prices, and, in turn, other oilseeds in the vegetable oil complex, such as canola.
According to the Indonesian palm oil board, Indonesia’s 2022 production of palm oil is expected to reach 46.5mmt, with 30.9mmt exported to the world, representing 66% of production. 2023 production is forecast to rise 1.6mmt(3%) to 48.1mmt, and exports to increase 2.5mmt to 33.5mmt.
The expectation that Indonesia will implement a 5% increase in it’s biodiesel fuel blending mandate to 35% (B35) in January 2023 will have the impact of increasing domestic usage of palm oil within the country, and help keep a lid on international exports volumes in the face of rising production. The Indonesian government has stated that part of the impetus behind the change is the expectation of a continued environment of elevated crude oil prices for the foreseeable future, and an intent to both reduce fuel import costs, and reduce net greenhouse gas emissions for the country.
In addition, by increasing palm oil demand; the mandates also support palm oil prices for producers, giving the industry a solid boost. Mercado
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Malaysia-Premier: Palm oil sludge to raise commodity’s value, enable sustainable circular economy
KUCHING (Dec 15): Palm oil sludge can be used for the solar panel industry, giving the industry the opportunity to be part of a sustainable circular economy, said Premier of Sarawak Datuk Patinggi Tan Sri Abang Johari Tun Openg.
He explained palm oil sludge can be used to protect the film on solar panels and called on industry players to explore this avenue.
“You plant palm oil, you produce crude palm oil, you also produce biomass and at the same time you also produce sludge. This sludge has a value.
“When people manufacture solar panels, where solar absorbs energy from the sun and uses the energy for other purposes,” he said at the 10th Premier of Sarawak Environmental Award here last night.
According to him, new technology to protect the film of solar panels requires palm oil sludge.
He said this meant palm oil sludge, which was regarded as useless and discarded, could be reused and in turn this would produce energy that will be used by the industry itself, continuing the cycle and becoming a circular economy.
“I believe our palm oil’s value will be recognised, including in the EU, if we have the ecosystem. I hope this is an example where we can be innovative and produce products that are sustainable,” he said. The Borneo Post
December 14, 2022
Indonesia-Ministry asks stakeholders to support palm oil governance policy
Jakarta (ANTARA) - The Ministry of Trade has urged all stakeholders to support government policies regarding the management of palm oil as it is an important commodity in global trade. "We need strategies and policies for sustainable palm oil management that are recognized by trading partner countries and strengthen palm oil trade diplomacy. I invite stakeholders to support the government's policies," director general of foreign trade at the ministry, Budi Santoso, said during a discussion on "Optimizing Palm Oil Exports in Anticipation of Recession Impacts” here on Wednesday.
The government, through the Ministry of Trade, has issued policies that support palm oil governance—Minister of Trade’s Regulation (Permendag) Number 49 of 2022 concerning the management of the people's cooking oil program and Minister of Trade’s Regulation Number 50 of 2022 concerning the provisions for the export of crude palm oil, refined, bleached, and deodorized palm oil, refined, bleached, and deodorized palm olein, and used cooking oil, he added.
The policy, he said, is aimed at providing flexibility and convenience to business actors to optimize the supply of cooking oil at affordable prices for consumers as well as the supply of raw material at prices that are profitable for plantation managers.
“(This is) In order to simultaneously encourage national economic growth through export activities of palm products and their derivatives. It is hoped that the palm oil commodity will remain empowered in facing the dynamics of the global market," Santoso added. Antara News
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EU Green-Cover Policy Looks Like Trade Shield
Agricultural protectionism is not new for the EU. Be it through its market-intervention measures like export refunds and intervention buying, or more recently through stiff regulations for exporters, the EU has always protected its farmers
For decades, Ethiopian exports of roasted Arabica found their way into Europe’s coffee markets. Ethiopia’s coffee plantations were often built on cleared forests, specifically on the last remnants of its only biodiversity hotspot. This format of European trade with countries in Asia, Africa and South America continued unabated without eyebrows raised until about a year ago. In November 2021, the European Commission proposed legislation to check EU consumption and production of agricultural produce cultivated on deforested land. Pursuant to this, the EU Parliament and Council recently arrived at a political agreement, one being touted by the EU, a major trader of such agricultural commodities, as a major move to combat forest degradation and biodiversity loss. It was evidently timed for talks in Montreal on the subject. But there is more to this story than meets the eye.
Agricultural protectionism is not new for the EU. Be it through its market-intervention measures like export refunds and intervention buying, or more recently through stiff regulations for exporters, the EU has always protected its farmers. While most countries practise some form of farm protectionism, the EU’s stands out for its veil of ethics, environmental activism being the latest. Livemint
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Palm oil imports to top buyer India surge on discount to rivals
Imports last month were 1.14 million tonnes, more than double from a year earlier, the Mumbai-based Solvent Extractors' Association of India (SEA) said in a statement.
Higher Indian imports would help top producer Indonesia cut its inventories and support benchmark Malaysian palm oil prices , which have nearly halved from this year's record highs. Reuters
Indonesia-Ministry asks stakeholders to support palm oil governance policy
Jakarta (ANTARA) - The Ministry of Trade has urged all stakeholders to support government policies regarding the management of palm oil as it is an important commodity in global trade. "We need strategies and policies for sustainable palm oil management that are recognized by trading partner countries and strengthen palm oil trade diplomacy. I invite stakeholders to support the government's policies," director general of foreign trade at the ministry, Budi Santoso, said during a discussion on "Optimizing Palm Oil Exports in Anticipation of Recession Impacts” here on Wednesday.
The government, through the Ministry of Trade, has issued policies that support palm oil governance—Minister of Trade’s Regulation (Permendag) Number 49 of 2022 concerning the management of the people's cooking oil program and Minister of Trade’s Regulation Number 50 of 2022 concerning the provisions for the export of crude palm oil, refined, bleached, and deodorized palm oil, refined, bleached, and deodorized palm olein, and used cooking oil, he added.
The policy, he said, is aimed at providing flexibility and convenience to business actors to optimize the supply of cooking oil at affordable prices for consumers as well as the supply of raw material at prices that are profitable for plantation managers.
“(This is) In order to simultaneously encourage national economic growth through export activities of palm products and their derivatives. It is hoped that the palm oil commodity will remain empowered in facing the dynamics of the global market," Santoso added. Antara News
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EU Green-Cover Policy Looks Like Trade Shield
Agricultural protectionism is not new for the EU. Be it through its market-intervention measures like export refunds and intervention buying, or more recently through stiff regulations for exporters, the EU has always protected its farmers
For decades, Ethiopian exports of roasted Arabica found their way into Europe’s coffee markets. Ethiopia’s coffee plantations were often built on cleared forests, specifically on the last remnants of its only biodiversity hotspot. This format of European trade with countries in Asia, Africa and South America continued unabated without eyebrows raised until about a year ago. In November 2021, the European Commission proposed legislation to check EU consumption and production of agricultural produce cultivated on deforested land. Pursuant to this, the EU Parliament and Council recently arrived at a political agreement, one being touted by the EU, a major trader of such agricultural commodities, as a major move to combat forest degradation and biodiversity loss. It was evidently timed for talks in Montreal on the subject. But there is more to this story than meets the eye.
Agricultural protectionism is not new for the EU. Be it through its market-intervention measures like export refunds and intervention buying, or more recently through stiff regulations for exporters, the EU has always protected its farmers. While most countries practise some form of farm protectionism, the EU’s stands out for its veil of ethics, environmental activism being the latest. Livemint
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Palm oil imports to top buyer India surge on discount to rivals
- Nov palm oil imports jump 29% m/m to 1.14 mln T
- Soyoil imports in Nov fall 31% m/m to 229,373 T
- Nov sunflower oil imports rise 8% m/m to 157,709 T
Imports last month were 1.14 million tonnes, more than double from a year earlier, the Mumbai-based Solvent Extractors' Association of India (SEA) said in a statement.
Higher Indian imports would help top producer Indonesia cut its inventories and support benchmark Malaysian palm oil prices , which have nearly halved from this year's record highs. Reuters
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December 13, 2022
Malaysia-MPOB concerned about EU agreement to ban palm oil, says palm oil, products are deforestation-free
KUALA LUMPUR: The Malaysian Palm Oil Board (MPOB) is concerned about the European Union’s (EU) agreement to ban the import of several products which include palm oil, beef, soy, coffee, cocoa and timber.
According to a statement shared on the European Commission (EC) website, the EU reached an agreement on Dec 6, 2022 to ban the import of the mentioned products, which have been identified as a "driver of deforestation” if they come from deforested land after Dec 31, 2020.
In a statement today, MPOB said based on the EC statement, the new law will, once adopted and applied, ensure that a set of key goods placed on the EU market will no longer contribute to deforestation and forest degradation in the EU and elsewhere in the world. The StarMY
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Indonesia-Most Indonesian Palm Oil Companies Can Meet EU Criteria: Ambassador
Jakarta. The European Union Ambassador to Indonesia has expressed confidence that most palm oil companies in the country can meet the block's stricter requirements against deforestation for plantation commodities, including palm oil.
"We are convinced that the large majority of companies, whether there are large firms or smallholder firms plantations, can meet our criteria," EU Ambassador Vincent Piket told reporters on Monday.
Piket's comments come a week after the EU approved legislation prohibiting companies from selling coffee, beef, soy, chocolate, rubber, and some palm oil derivatives associated with deforestation on the EU market.
The law will require companies to provide a due diligence statement showing that their supply chain does not contribute to forest destruction before selling goods to the EU, or they could face significant fines.
Many in Indonesia have expressed their concerns that the law would make it impossible for exporters to ship their commodities to the economic bloc, one of Indonesia's largest palm oil market besides India, China and Pakistan.
"There is a lot of misunderstanding about this law saying that this will make trade impossible. It's not the case. I am convinced
after speaking to companies that the this can be made to work," Piket said.
The ambassador noted that Indonesia and the EU are looking in the same direction regarding promoting sustainable palm oil production. Jakarta Globe
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EIA Report Names Indonesian Companies Responsible for Clearing Forests Within Plantation Areas
Some of the companies committing the worst deforestation for palm oil have been entering the supply chains of major international companies with ‘no deforestation’ policies – including consumer brands such as Colgate-Palmolive, Nestle and Unilever – in a clear breach of those standards.
This is highly concerning and shows that the policies and procedures that companies have in place to ensure no deforestation are insufficient, given that palm oil coming from forest clearing has still been entering their supply chains and, no doubt, European markets and supermarket products.
With the EU having just agreed the text for a new regulation to ensure that only products free from deforestation are sold in its marketplaces, companies will need to up their game to ensure they are in compliance. EIA
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BAM stands by HVO and blames the media for backlash
Bam has produced a position statement explaining why it remains committed to the use of HVO biodiesel, despite opposition from Balfour Beatty, VolkerWessels and within the Environment Agency.
Bam says that opposition to HVO is being stirred by “the mainstream media” simply seeking “attention”.
At the heart of the debate about biodiesel is the question of the sustainability of the palm oil that is used in hydrotreated vegetable oil (HVO). Bam says that is has been convinced by its suppliers that it is using only the good stuff, and not the bad.
“Bam will continue use HVO fuels as part of its strategy for decarbonising its operations,” the company says.
However, there remain questions about how long supplies of used cooking oil (UCO) can keep up with growing demand for HVO from transport operators and construction companies. We may be assured by suppliers' certificates of provenance today, but for how much longer? Construction Index
Malaysia-MPOB concerned about EU agreement to ban palm oil, says palm oil, products are deforestation-free
KUALA LUMPUR: The Malaysian Palm Oil Board (MPOB) is concerned about the European Union’s (EU) agreement to ban the import of several products which include palm oil, beef, soy, coffee, cocoa and timber.
According to a statement shared on the European Commission (EC) website, the EU reached an agreement on Dec 6, 2022 to ban the import of the mentioned products, which have been identified as a "driver of deforestation” if they come from deforested land after Dec 31, 2020.
In a statement today, MPOB said based on the EC statement, the new law will, once adopted and applied, ensure that a set of key goods placed on the EU market will no longer contribute to deforestation and forest degradation in the EU and elsewhere in the world. The StarMY
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Indonesia-Most Indonesian Palm Oil Companies Can Meet EU Criteria: Ambassador
Jakarta. The European Union Ambassador to Indonesia has expressed confidence that most palm oil companies in the country can meet the block's stricter requirements against deforestation for plantation commodities, including palm oil.
"We are convinced that the large majority of companies, whether there are large firms or smallholder firms plantations, can meet our criteria," EU Ambassador Vincent Piket told reporters on Monday.
Piket's comments come a week after the EU approved legislation prohibiting companies from selling coffee, beef, soy, chocolate, rubber, and some palm oil derivatives associated with deforestation on the EU market.
The law will require companies to provide a due diligence statement showing that their supply chain does not contribute to forest destruction before selling goods to the EU, or they could face significant fines.
Many in Indonesia have expressed their concerns that the law would make it impossible for exporters to ship their commodities to the economic bloc, one of Indonesia's largest palm oil market besides India, China and Pakistan.
"There is a lot of misunderstanding about this law saying that this will make trade impossible. It's not the case. I am convinced
after speaking to companies that the this can be made to work," Piket said.
The ambassador noted that Indonesia and the EU are looking in the same direction regarding promoting sustainable palm oil production. Jakarta Globe
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EIA Report Names Indonesian Companies Responsible for Clearing Forests Within Plantation Areas
Some of the companies committing the worst deforestation for palm oil have been entering the supply chains of major international companies with ‘no deforestation’ policies – including consumer brands such as Colgate-Palmolive, Nestle and Unilever – in a clear breach of those standards.
This is highly concerning and shows that the policies and procedures that companies have in place to ensure no deforestation are insufficient, given that palm oil coming from forest clearing has still been entering their supply chains and, no doubt, European markets and supermarket products.
With the EU having just agreed the text for a new regulation to ensure that only products free from deforestation are sold in its marketplaces, companies will need to up their game to ensure they are in compliance. EIA
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BAM stands by HVO and blames the media for backlash
Bam has produced a position statement explaining why it remains committed to the use of HVO biodiesel, despite opposition from Balfour Beatty, VolkerWessels and within the Environment Agency.
Bam says that opposition to HVO is being stirred by “the mainstream media” simply seeking “attention”.
At the heart of the debate about biodiesel is the question of the sustainability of the palm oil that is used in hydrotreated vegetable oil (HVO). Bam says that is has been convinced by its suppliers that it is using only the good stuff, and not the bad.
“Bam will continue use HVO fuels as part of its strategy for decarbonising its operations,” the company says.
However, there remain questions about how long supplies of used cooking oil (UCO) can keep up with growing demand for HVO from transport operators and construction companies. We may be assured by suppliers' certificates of provenance today, but for how much longer? Construction Index
December 12, 2022
‘Ownership still lacking’: FMCG brands need to step up public support of sustainable palm oil – RSPO leadership
FMCG food and beverage brands making popular consumer products need to step up and publicly support sustainable palm oil in order to make a real impact in the sector, according to leaders of the RSPO. Food Navigator Asia
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EU deforestation-free supply chain laws gain broad welcome, despite calls for extending scope
The landmark EU agreement surrounding deforestation-free supply chains, including key cocoa and palm oil sectors, has been broadly welcomed by the wider industry, despite concerns over whether its scope goes far enough, reports Neill Barston.
Though in general political circles, there was enthusiasm at the progress made, environmental groups such as Mighty Earth claimed the new legislation should have included sensitive locations such as peatlands and savannah territories.
According to the European Commission, it stated a general note of welcome for what stands as a provisional political agreement just reached between the European Parliament.
Significantly, at its core, once adopted and applied, the new law will ensure that a set of key goods placed on the EU market will no longer contribute to deforestation and forest degradation in the EU and elsewhere in the world – which stands as a major potential gamechanger in West African cocoa supply chains, which remain affected by key environmental concerns. Confectionery Production
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India-3F Oil Palm Pvt Ltd's Expansion in Northeast India questioned
Guwahati: After earning a “dubious distinction” in the state of Chhattisgarh for its poor track record in the year 2011, a Hyderabad based Oil Palm manufacturing firm, 3F Oil Palm Pvt Ltd has mysteriously made its way into Assam, with the company being granted empanelment for Oil Palm cultivation, in the state’s Lakhimpur and Chirang districts, said a source.
As per sources, the ‘tainted’ firm getting empanelment for Oil Palm cultivation in Assam’s Chirang district came to light after a notification was issued recently by the Department of Agriculture & Horticulture, Government of Assam, in its official website https://diragri.assam.gov.in/.
The source said, “However, the 3F Oil Palm Pvt. Ltd., has a dubious distinction of acquiring land banks for enhancing the company’s assets and valuations without doing anything substantial on ground. As such, the company was blacklisted in Chhattisgarh recently.” Northeast NowIN
‘Ownership still lacking’: FMCG brands need to step up public support of sustainable palm oil – RSPO leadership
FMCG food and beverage brands making popular consumer products need to step up and publicly support sustainable palm oil in order to make a real impact in the sector, according to leaders of the RSPO. Food Navigator Asia
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EU deforestation-free supply chain laws gain broad welcome, despite calls for extending scope
The landmark EU agreement surrounding deforestation-free supply chains, including key cocoa and palm oil sectors, has been broadly welcomed by the wider industry, despite concerns over whether its scope goes far enough, reports Neill Barston.
Though in general political circles, there was enthusiasm at the progress made, environmental groups such as Mighty Earth claimed the new legislation should have included sensitive locations such as peatlands and savannah territories.
According to the European Commission, it stated a general note of welcome for what stands as a provisional political agreement just reached between the European Parliament.
Significantly, at its core, once adopted and applied, the new law will ensure that a set of key goods placed on the EU market will no longer contribute to deforestation and forest degradation in the EU and elsewhere in the world – which stands as a major potential gamechanger in West African cocoa supply chains, which remain affected by key environmental concerns. Confectionery Production
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India-3F Oil Palm Pvt Ltd's Expansion in Northeast India questioned
Guwahati: After earning a “dubious distinction” in the state of Chhattisgarh for its poor track record in the year 2011, a Hyderabad based Oil Palm manufacturing firm, 3F Oil Palm Pvt Ltd has mysteriously made its way into Assam, with the company being granted empanelment for Oil Palm cultivation, in the state’s Lakhimpur and Chirang districts, said a source.
As per sources, the ‘tainted’ firm getting empanelment for Oil Palm cultivation in Assam’s Chirang district came to light after a notification was issued recently by the Department of Agriculture & Horticulture, Government of Assam, in its official website https://diragri.assam.gov.in/.
The source said, “However, the 3F Oil Palm Pvt. Ltd., has a dubious distinction of acquiring land banks for enhancing the company’s assets and valuations without doing anything substantial on ground. As such, the company was blacklisted in Chhattisgarh recently.” Northeast NowIN
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December 08, 2022
Sime Darby Plantation announces 2050 net-zero emissions commitment with clear roadmap
SDP’s net-zero strategy is science-based and in line with the latest guidance by SBTi, including the Forest, Land and Agriculture (FLAG) Guidance launched by SBTi on 28 September 2022. SDP submitted both its near-term 2030 targets and longer-term 2050 targets to SBTi on 10 November 2022 for validation. SDP’s net-zero strategy commits to 100% absolute overall emissions reduction in Scope 1 and 2 by 2050, with all unabated Scope 3 emissions balanced by an appropriate amount of carbon removals or offsets.
SDP has taken a three-pronged approach: Sime Darby Plantation
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EU-Views sought on updated list of sustainable biofuel feedstocks
The European Commission has asked to hear views on the long-awaited update of the Renewable Energy Directive (RED) Annex IX.
This draft act is open for feedback for four weeks until January 2.
This feedback will then be taken into account for finalising this initiative. The Commission added that the feedback received will also be published on its website and must also adhere to the feedback rules.
On the Commission website it said sustainable biofuels and biogases are important to increase the share of renewable energy in sectors that are difficult to decarbonise, such as the aviation and the maritime sector.
There is an approved list of sustainable biofuel feedstocks in Annex IX (Parts A and B) to this regulation and that the Commission must regularly review the list and add any feedstocks to the Annex that meet the criteria set out in Article 28(6).
This delegated act updates the list in the Annex to add the feedstocks that meet the criteria.
For more details visit ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/13484-Biofuels-updated-list-of-sustainable-biofuel-feedstocks_en.
Biofuels News
Sime Darby Plantation announces 2050 net-zero emissions commitment with clear roadmap
- SDP has submitted near and long-term targets to reduce greenhouse gas (GHG) emissions (including Scope 3 emissions) to the Science Based Targets initiative (SBTi) for validation
- All Scope 1 and Scope 2 reduction commitments are based on readily available technologies
- SDP Group Managing Director Mohamad Helmy Othman Basha, hails the net-zero emissions strategy launch as “a landmark moment for the future of the palm oil industry”
SDP’s net-zero strategy is science-based and in line with the latest guidance by SBTi, including the Forest, Land and Agriculture (FLAG) Guidance launched by SBTi on 28 September 2022. SDP submitted both its near-term 2030 targets and longer-term 2050 targets to SBTi on 10 November 2022 for validation. SDP’s net-zero strategy commits to 100% absolute overall emissions reduction in Scope 1 and 2 by 2050, with all unabated Scope 3 emissions balanced by an appropriate amount of carbon removals or offsets.
SDP has taken a three-pronged approach: Sime Darby Plantation
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EU-Views sought on updated list of sustainable biofuel feedstocks
The European Commission has asked to hear views on the long-awaited update of the Renewable Energy Directive (RED) Annex IX.
This draft act is open for feedback for four weeks until January 2.
This feedback will then be taken into account for finalising this initiative. The Commission added that the feedback received will also be published on its website and must also adhere to the feedback rules.
On the Commission website it said sustainable biofuels and biogases are important to increase the share of renewable energy in sectors that are difficult to decarbonise, such as the aviation and the maritime sector.
There is an approved list of sustainable biofuel feedstocks in Annex IX (Parts A and B) to this regulation and that the Commission must regularly review the list and add any feedstocks to the Annex that meet the criteria set out in Article 28(6).
This delegated act updates the list in the Annex to add the feedstocks that meet the criteria.
For more details visit ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/13484-Biofuels-updated-list-of-sustainable-biofuel-feedstocks_en.
Biofuels News
December 07, 2022
EU agrees deal to ban products which fuel deforestation
BRUSSELS — European Union lawmakers and governments reached a deal Tuesday that would ban the import of products which contribute to deforestation around the world.
The preliminary agreement, which still needs to be formally adopted by the EU parliament, requires companies to verify that the goods they sell in the EU have not led to deforestation and forest degradation anywhere in the world as of 2021.
Companies need to show that goods they import comply with rules in the country of origin, including on human rights and the protection of indigenous people.
Forests around the world are increasingly under threat from clearance for timber and agriculture, including soybean and palm oil. The U.N. Food and Agriculture Organization estimates that 420 million hectares (1.6 million square miles) of forest - an area larger than the EU - were destroyed between 1990 and 2020. Washington Post
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Joint COCERAL, FEDIOL, and FEFAC Reaction to the Provisional Deal between European Parliament and Council on the EU
Regulation for deforestation-free supply chains
The European Parliament and the Council concluded, last night, trilogue negotiations on the EU Deforestation Regulation. COCERAL, FEDIOL, and FEFAC, acknowledge the efforts to swiftly strike a deal and set an ambitious EU framework that will prevent commodities associated with deforestation to be marketed in the EU. An EU regulation tackling deforestation is a necessary initiative which should give a strong signal to players and governments around the world. COCERAL, FEDIOL, and FEFAC, welcome aspects of the deal on the EU regulation that will prove positive for the implementation through the palm oil and soy supply chains, such as guidelines, the timelines for implementation of 18 months, and lower percentage of checks for low-risk countries. COCERAL, FEDIOL, and FEFAC also consider positively that the agreement refrains from broadening the scope to maize and to other ecosystems from the outset, without further assessment of the implications. On the other hand, COCERAL, FEDIOL, and FEFAC regret that the requirement for traceability and implied chain of custody, as defined, will have a number of unintended consequences. These consequences will be felt deeply, particularly as this may lead to the exclusion of smallholders, the most vulnerable players in these supply chains, given the tight implementation deadline, or to disinvestment from high-risk areas. FEDIOL
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Malaysia’s palm oil producers could lose US$4.6 billion because of worker shortages
Palm growers hired around 14,000 foreign workers this year through November, just a fifth of the industry’s needs and about half of the number approved by the authorities, according to a survey of top 10 planters by the Malaysian Palm Oil Association. The country is the biggest producer of the tropical oil after Indonesia.
Malaysia’s palm oil sector is reliant on overseas labour and has struggled to bring in more workers as movement curbs due to the virus were relaxed. The government assured the industry it would accelerate worker approval, but planters say progress is too slow and is leading to crop losses. SCMP
EU agrees deal to ban products which fuel deforestation
BRUSSELS — European Union lawmakers and governments reached a deal Tuesday that would ban the import of products which contribute to deforestation around the world.
The preliminary agreement, which still needs to be formally adopted by the EU parliament, requires companies to verify that the goods they sell in the EU have not led to deforestation and forest degradation anywhere in the world as of 2021.
Companies need to show that goods they import comply with rules in the country of origin, including on human rights and the protection of indigenous people.
Forests around the world are increasingly under threat from clearance for timber and agriculture, including soybean and palm oil. The U.N. Food and Agriculture Organization estimates that 420 million hectares (1.6 million square miles) of forest - an area larger than the EU - were destroyed between 1990 and 2020. Washington Post
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Joint COCERAL, FEDIOL, and FEFAC Reaction to the Provisional Deal between European Parliament and Council on the EU
Regulation for deforestation-free supply chains
The European Parliament and the Council concluded, last night, trilogue negotiations on the EU Deforestation Regulation. COCERAL, FEDIOL, and FEFAC, acknowledge the efforts to swiftly strike a deal and set an ambitious EU framework that will prevent commodities associated with deforestation to be marketed in the EU. An EU regulation tackling deforestation is a necessary initiative which should give a strong signal to players and governments around the world. COCERAL, FEDIOL, and FEFAC, welcome aspects of the deal on the EU regulation that will prove positive for the implementation through the palm oil and soy supply chains, such as guidelines, the timelines for implementation of 18 months, and lower percentage of checks for low-risk countries. COCERAL, FEDIOL, and FEFAC also consider positively that the agreement refrains from broadening the scope to maize and to other ecosystems from the outset, without further assessment of the implications. On the other hand, COCERAL, FEDIOL, and FEFAC regret that the requirement for traceability and implied chain of custody, as defined, will have a number of unintended consequences. These consequences will be felt deeply, particularly as this may lead to the exclusion of smallholders, the most vulnerable players in these supply chains, given the tight implementation deadline, or to disinvestment from high-risk areas. FEDIOL
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Malaysia’s palm oil producers could lose US$4.6 billion because of worker shortages
- Malaysia is second biggest producer of palm oil, used in food, biofuels, cosmetics; palm growers have hired thousands of foreign workers, but many more are needed
- Government says it will accelerate worker approval, but planters say progress is slow and there are ‘rotting’ crops without enough boots on the ground
Palm growers hired around 14,000 foreign workers this year through November, just a fifth of the industry’s needs and about half of the number approved by the authorities, according to a survey of top 10 planters by the Malaysian Palm Oil Association. The country is the biggest producer of the tropical oil after Indonesia.
Malaysia’s palm oil sector is reliant on overseas labour and has struggled to bring in more workers as movement curbs due to the virus were relaxed. The government assured the industry it would accelerate worker approval, but planters say progress is too slow and is leading to crop losses. SCMP
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December 06, 2022
EU Seals ‘Groundbreaking’ Deal to Curb Its Role in Deforestation
INVESTING
Commodities
Company News
News Wire
4h ago
EU Seals ‘Groundbreaking’ Deal to Curb Its Role in Deforestation
John Ainger, Bloomberg News
(Bloomberg) -- The European Union sealed a late-night deal to curb its role in global deforestation through its supply chains for key commodities.
Parliament and member states agreed to set mandatory rules for companies selling palm oil, beef, timber, coffee, cocoa, rubber and soy to ensure that those products do not come from deforested land. Some manufactured products, like chocolate, furniture and printed paper will also be included.
Environmental groups applauded the agreement, heralding the rules as a world first, with the World Wildlife Fund calling it “groundbreaking.” Europe’s heavy demand for rubber, for example, has been linked to deforestation of 520 square kilometers in West Africa since the start of the millennium.
“Make no mistake, this law will make some chainsaws fall silent and stop companies profiting from deforestation,” said John Hyland, a spokesperson for Greenpeace. “In the coming years, the EU must broaden its focus to protect nature as a whole, not just forests.” BNNBloomberg
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Deal on new law to ensure products causing deforestation are not sold in the EU
To fight climate change and biodiversity loss, the new law obliges companies to ensure that a series of products sold in the EU do not come from deforested land anywhere in the world.
On Tuesday morning, MEPs reached a preliminary deal with EU governments on a new law on deforestation-free products that will make it obligatory for companies to verify and issue a so-called “due diligence” statement that goods placed on the EU market have not led to deforestation and forest degradation anywhere in the world after 31 December 2020. According to the agreed text, while no country or commodity as such will be banned, companies will not be allowed to sell their products in the EU without this type of statement. As requested by MEPs, companies will also have to verify compliance with relevant legislation of the country of production including on human rights and that the rights of concerned indigenous people have been respected.
The new law would guarantee European consumers that the products they buy do not contribute to the destruction and degradation of forests, including of irreplaceable primary forests, and would hence reduce the EU’s contribution to climate change and biodiversity loss globally. Europarl.Europa
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Council and Parliament strike provisional deal to cut down deforestation worldwide
The Council and the European Parliament reached a provisional deal on a proposal to minimise the risk of deforestation and forest degradation associated with products that are imported into or exported from the European Union. The agreement is provisional pending formal adoption in both institutions.
The provisional agreement sets mandatory due diligence rules for all operators and traders who place, make available or export the following commodities from the EU market: palm oil, beef, timber, coffee, cocoa, rubber and soy. The rules also apply to a number of derived products such as chocolate, furniture, printed paper and selected palm oil based derivates (used for example as components in personal care products). A review will be carried out in two years to see if other products need to be covered.
The co-legislators set the cut-off date of the new rules at 31 December 2020, meaning that only products that have been produced on land that has not been subject to deforestation or forest degradation after 31 December 2020 will be allowed on the Union market or to be exported.
The Council and Parliament agreed to set a definition for deforestation, based on a definition from the Food and Agriculture Organisation (FAO). They set an innovative concept for the definition of ‘forest degradation’ meaning the structural changes to forest cover, taking the form of the conversion of naturally regenerating forests and primary forests into plantation forests and other wooded land and the conversion of primary forests into planted forests. Consilium.Europa
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Indonesia govt to create a mechanism for rollout of B35 biodiesel policy
JAKARTA : Indonesia's president has asked the government to create a mechanism next year to ensure the rollout of B35 biodiesel, a senior minister said on Tuesday.
B35 is a fuel containing a 35per cent mix of palm oil-based fuel.
Indonesia, the world's top palm oil producer, currently has a mandatory 30per cent mix of palm oil fuel in biodiesel, known as B30.
"With the implementation of B35, it will reduce our dependency on (oil) imports," Chief Economics Minister Airlangga Hartarto said.
He did not provide further detail on plans for B35 implementation or give any timetable. Today Online
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EU Seals ‘Groundbreaking’ Deal to Curb Its Role in Deforestation
INVESTING
Commodities
Company News
News Wire
4h ago
EU Seals ‘Groundbreaking’ Deal to Curb Its Role in Deforestation
John Ainger, Bloomberg News
(Bloomberg) -- The European Union sealed a late-night deal to curb its role in global deforestation through its supply chains for key commodities.
Parliament and member states agreed to set mandatory rules for companies selling palm oil, beef, timber, coffee, cocoa, rubber and soy to ensure that those products do not come from deforested land. Some manufactured products, like chocolate, furniture and printed paper will also be included.
Environmental groups applauded the agreement, heralding the rules as a world first, with the World Wildlife Fund calling it “groundbreaking.” Europe’s heavy demand for rubber, for example, has been linked to deforestation of 520 square kilometers in West Africa since the start of the millennium.
“Make no mistake, this law will make some chainsaws fall silent and stop companies profiting from deforestation,” said John Hyland, a spokesperson for Greenpeace. “In the coming years, the EU must broaden its focus to protect nature as a whole, not just forests.” BNNBloomberg
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Deal on new law to ensure products causing deforestation are not sold in the EU
To fight climate change and biodiversity loss, the new law obliges companies to ensure that a series of products sold in the EU do not come from deforested land anywhere in the world.
On Tuesday morning, MEPs reached a preliminary deal with EU governments on a new law on deforestation-free products that will make it obligatory for companies to verify and issue a so-called “due diligence” statement that goods placed on the EU market have not led to deforestation and forest degradation anywhere in the world after 31 December 2020. According to the agreed text, while no country or commodity as such will be banned, companies will not be allowed to sell their products in the EU without this type of statement. As requested by MEPs, companies will also have to verify compliance with relevant legislation of the country of production including on human rights and that the rights of concerned indigenous people have been respected.
The new law would guarantee European consumers that the products they buy do not contribute to the destruction and degradation of forests, including of irreplaceable primary forests, and would hence reduce the EU’s contribution to climate change and biodiversity loss globally. Europarl.Europa
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Council and Parliament strike provisional deal to cut down deforestation worldwide
The Council and the European Parliament reached a provisional deal on a proposal to minimise the risk of deforestation and forest degradation associated with products that are imported into or exported from the European Union. The agreement is provisional pending formal adoption in both institutions.
The provisional agreement sets mandatory due diligence rules for all operators and traders who place, make available or export the following commodities from the EU market: palm oil, beef, timber, coffee, cocoa, rubber and soy. The rules also apply to a number of derived products such as chocolate, furniture, printed paper and selected palm oil based derivates (used for example as components in personal care products). A review will be carried out in two years to see if other products need to be covered.
The co-legislators set the cut-off date of the new rules at 31 December 2020, meaning that only products that have been produced on land that has not been subject to deforestation or forest degradation after 31 December 2020 will be allowed on the Union market or to be exported.
The Council and Parliament agreed to set a definition for deforestation, based on a definition from the Food and Agriculture Organisation (FAO). They set an innovative concept for the definition of ‘forest degradation’ meaning the structural changes to forest cover, taking the form of the conversion of naturally regenerating forests and primary forests into plantation forests and other wooded land and the conversion of primary forests into planted forests. Consilium.Europa
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Indonesia govt to create a mechanism for rollout of B35 biodiesel policy
JAKARTA : Indonesia's president has asked the government to create a mechanism next year to ensure the rollout of B35 biodiesel, a senior minister said on Tuesday.
B35 is a fuel containing a 35per cent mix of palm oil-based fuel.
Indonesia, the world's top palm oil producer, currently has a mandatory 30per cent mix of palm oil fuel in biodiesel, known as B30.
"With the implementation of B35, it will reduce our dependency on (oil) imports," Chief Economics Minister Airlangga Hartarto said.
He did not provide further detail on plans for B35 implementation or give any timetable. Today Online
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December 05, 2022
Malaysia-ESG challenges in the palm oil industry
THE Malaysian palm oil industry has had a head start when it comes to addressing sustainability as well as environmental, social and governance (ESG) requirements, due to the demand, since the early 2000s, for sustainable palm oil production.
Yet it remains one of the most scrutinised industries as the plantation sector still has to deal with heavy criticisms and misconceptions with regard to the ESG-related issues.
Industry players have upped their game in the face of this heightened scrutiny; as of March 31, 2022, about 97.33% of the oil palm plantations are Malaysian Sustainable Palm Oil (MSPO) certified.
Palm oil supply chain companies are required to be certified with the MPSO certification. The StarMY
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Pride and palm oil: PepsiCo calls for big brand sustainability involvement to attract smallholder producers
Food giant PepsiCo believes that the involvement of major food and beverage brands in palm oil sustainability initiatives is crucial to attract smallholder producers and make a bigger impact. Food Navigator Asia
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Africa's AfCFTA free trade agreement takes baby steps
A handful of African companies have finally started shipping goods under the long-delayed AfCFTA free trade agreement. They're part of a new initiative to kick-start intra-African trade.
It's been a long time coming, but several African nations have started trading a trickle of goods under the African Continental Free Trade Area (AfCFTA) agreement.
Kenya has shipped locally-made car and truck batteries as well as a consignment of Kenyan-grown tea to Ghana in the past months. Rwanda has also exported processed coffee beans to the West African nation.
"It's a positive move," said Nixon Paloma, Group Finance Officer at Associated Battery Manufacturers. The firm is one of only two companies in Kenya taking part in a pilot project called the Guided Trade Initiative.
The initiative gives companies dealing in certain products in selected countries support through the AfCFTA process. The idea is to test — and prove — that the AfCFTA system works and get intraregional trade finally rolling under AfCFTA. As well as Kenya, Rwanda and Ghana, it includes Cameroon, Egypt, Mauritius, Tanzania and Tunisia. DW
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POIASL 4th AGM Concludes with the Discussions How Expansion of Oil Palm Cultivation Can Help Sri Lanka Recover from the Economic Crisis
The Palm Oil Industry Association of Sri Lanka (POIASL) held its 4th AGM on the 24th of November 2022, at the JAIC Hilton in Colombo. High Commissioner of Malaysia to Sri Lanka and Maldives – His Excellency Dato Tan Yang Thai, and the Ambassador of the Republic of Indonesia, Her Excellency Dewi Gustina Tobing, stakeholders, including cultivators, refiners, processers, manufactures marketers and sellers, and invitees from private and public institutions were present at this event. The AGM voted to extend the same executive committee’s tenure for another year to make further developments towards accomplishing its mission. The Executive Committee of the Association is made up of senior executives within Sri Lanka’s palm oil industry, and the POIASL’s primary focus is improving Sri Lanka’s economic crop diversity through a competitive, resilient, and sustainable palm oil sector.
Discussions at the Association’s AGM also touched on the unprecedented challenges encountered by the Sri Lankan economy in the face of the COVID-19 pandemic, followed by the fertilizer ban and the false myths surrounding the consumption of palm oil. Despite these challenges, there is hope on the horizon as the POIASL has strategically designed a blueprint to navigate the local economic crisis, while simultaneously fighting misinformation via awareness campaigns. Palm oil is versatile and budget-friendly for consumers, allowing the industry in Sri Lanka to expand on its potential which is not currently being utilized to its full capacity. However, in positive anticipation of support to eliminate the ban on palm oil, along with international support and advice from the Indonesian and Malaysian Embassies, and the Indian High Commission, there is a promising future for this industry in Sri Lanka. Adaderana
Malaysia-ESG challenges in the palm oil industry
THE Malaysian palm oil industry has had a head start when it comes to addressing sustainability as well as environmental, social and governance (ESG) requirements, due to the demand, since the early 2000s, for sustainable palm oil production.
Yet it remains one of the most scrutinised industries as the plantation sector still has to deal with heavy criticisms and misconceptions with regard to the ESG-related issues.
Industry players have upped their game in the face of this heightened scrutiny; as of March 31, 2022, about 97.33% of the oil palm plantations are Malaysian Sustainable Palm Oil (MSPO) certified.
Palm oil supply chain companies are required to be certified with the MPSO certification. The StarMY
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Pride and palm oil: PepsiCo calls for big brand sustainability involvement to attract smallholder producers
Food giant PepsiCo believes that the involvement of major food and beverage brands in palm oil sustainability initiatives is crucial to attract smallholder producers and make a bigger impact. Food Navigator Asia
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Africa's AfCFTA free trade agreement takes baby steps
A handful of African companies have finally started shipping goods under the long-delayed AfCFTA free trade agreement. They're part of a new initiative to kick-start intra-African trade.
It's been a long time coming, but several African nations have started trading a trickle of goods under the African Continental Free Trade Area (AfCFTA) agreement.
Kenya has shipped locally-made car and truck batteries as well as a consignment of Kenyan-grown tea to Ghana in the past months. Rwanda has also exported processed coffee beans to the West African nation.
"It's a positive move," said Nixon Paloma, Group Finance Officer at Associated Battery Manufacturers. The firm is one of only two companies in Kenya taking part in a pilot project called the Guided Trade Initiative.
The initiative gives companies dealing in certain products in selected countries support through the AfCFTA process. The idea is to test — and prove — that the AfCFTA system works and get intraregional trade finally rolling under AfCFTA. As well as Kenya, Rwanda and Ghana, it includes Cameroon, Egypt, Mauritius, Tanzania and Tunisia. DW
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POIASL 4th AGM Concludes with the Discussions How Expansion of Oil Palm Cultivation Can Help Sri Lanka Recover from the Economic Crisis
The Palm Oil Industry Association of Sri Lanka (POIASL) held its 4th AGM on the 24th of November 2022, at the JAIC Hilton in Colombo. High Commissioner of Malaysia to Sri Lanka and Maldives – His Excellency Dato Tan Yang Thai, and the Ambassador of the Republic of Indonesia, Her Excellency Dewi Gustina Tobing, stakeholders, including cultivators, refiners, processers, manufactures marketers and sellers, and invitees from private and public institutions were present at this event. The AGM voted to extend the same executive committee’s tenure for another year to make further developments towards accomplishing its mission. The Executive Committee of the Association is made up of senior executives within Sri Lanka’s palm oil industry, and the POIASL’s primary focus is improving Sri Lanka’s economic crop diversity through a competitive, resilient, and sustainable palm oil sector.
Discussions at the Association’s AGM also touched on the unprecedented challenges encountered by the Sri Lankan economy in the face of the COVID-19 pandemic, followed by the fertilizer ban and the false myths surrounding the consumption of palm oil. Despite these challenges, there is hope on the horizon as the POIASL has strategically designed a blueprint to navigate the local economic crisis, while simultaneously fighting misinformation via awareness campaigns. Palm oil is versatile and budget-friendly for consumers, allowing the industry in Sri Lanka to expand on its potential which is not currently being utilized to its full capacity. However, in positive anticipation of support to eliminate the ban on palm oil, along with international support and advice from the Indonesian and Malaysian Embassies, and the Indian High Commission, there is a promising future for this industry in Sri Lanka. Adaderana
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December 02, 2022
EU-Corporate Sustainability Due Diligence Directive EU Grain and Oilseeds Sector Welcomes Council General Approach
COCERAL, FEDIOL, and FEFAC, representing the EU grain and oilseed trade, crushing and animal feed industry, welcome the improvements provided by the Council’s General Approach to the Commission’s Proposal on a Directive for Corporate Sustainability Due Diligence. The strengthened risk-based approach and introduction of prioritisation of adverse impacts based on their severity and likelihood would ensure that companies’ efforts are concentrated where they are most needed and can deliver the most impact. This approach is also more aligned with the existing international framework on due diligence practices, which are built on best practices. The Council has also provided a critical and much needed legal clarification to the civil liability regime by specifying more clearly the conditions that need to be met for civil liability to apply. The amended provisions provide more legal certainty for companies and make the important link to failure to comply with the provisions of the Directive. Furthermore, the civil liability would only apply to a company’s own operations, whether alone or in conjunction with other business partners. We believe that as a general principle, civil liability should be limited to cases in which a company has directly caused or contributed to the adverse impact and that it should therefore be limited to own operations and not extend to the actions of a legally distinct third party. However, we regret that the Council did not reinforce the provisions on Union action to support due diligence in third countries, FEDIOL
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Nigeria-Palm Oil: N53bn Import Threatens FG’s Self-Sufficiency Target
Despite forex restriction by the Central Bank of Nigeria (CBN), a total of 63,938 tonnes of crude palm oil valued at N53billion ($76.05million) has been imported through the Lagos port between October and December 2022 by manufacturing firms. Some of the manufacturing firms that import palm oil include Flour Mills of Nigeria, Maahika Nigeria Limited, PZ Wilmar Limited, Wetheral Oil among others. The steady importation, it was gathered, had been threatening Federal Government’s effort to make the country self-sufficient in palm oil production by 2024. CBN had said that the country could reach self-sufficiency in palm oil between 2022 and 2024 and ultimately overtake Thailand and Columbia to become the third-largest producer over the next few years.
However, data by the Nigerian Ports Authority (NPA)’s shipping position revealed that of the 63, 938 tonnes offloaded at the seaports, Capella discharged 18,051tonnes at Rivers Port and 10,000 tonnes at Josepdam, Tincan Island Port. At the Apapa Bulk Terminal Limited (ABTL), Lagos Port, Fairchem Tiger arrived on Monday this week with 4,000 tonnes, while Bruno offloaded 19,887tonnes to ENL in October and Marie S, 12,000 tonnes at ABTL. Findings revealed that the price of the commodity had reached $1,200 from $720 per tonne in the global market. However, Fitch Ratings said that it expected average crude palm oil prices to be significantly lower in 2023, as industry output would likely to be higher. It noted: “We assume Malaysian benchmark crude palm oil prices to average $800/tonne in 2023, compared with $1,200/tonne in 2022.” Last year, 425, 000 tonnes of palm oil valued at $445.47million were imported into the country from the estimated total $50.8 billion sold globally in 2021. Overall, the value of palm oil imports has accelerated by 51per cent for all importing countries since 2017. It was learnt that on year over year, globally imported palm oil increased by 50 per cent from $33.8 billion during 2020. New Telegraph NG
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Edo reaffirms commitment to driving sustainable commodities in Africa
As part of its commitment to ensuring sustainable and responsible production of oil palm, cocoa, coffee, rubber and other tree crops, Edo State Government has signed the Africa Sustainable Commodities Initiative (ASCI) Declaration at the United Nations (UN) Conference (CoP27) in Sharm el-sheikh, in Egypt.
The Declaration was signed by members from 10 African countries, making Edo State the front-runner and only sub-national to seal this process.
According to the UN Conference, the declaration is targeted at ensuring that producer countries in Africa are at the forefront of defining the principles for the sustainable development of cocoa, rubber, palm oil, coffee and other commodities in a way that protects livelihoods and protects natural resources including forests. GuardianNG
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Papua New Guinea-Oil palm industry to be regulated: Maneke
THE oil palm industry will soon have a new legislative and regulatory framework to guide key players, says Oil Palm Minister Francis Maneke.
“As we know, the oil palm industry is a very old one with the legislation covering the industry only an extension service legislation. We will have to do more consultation to work on the legislation, policy and framework which is now halfway done,” he said.
Maneke said he was working on a 100-day plan which included developing legislation, a new policy and regulatory framework to drive the industry.
He revealed this yesterday in Parliament, in response to Alotau MP Ricky Morris’s questions about introducing a regulatory framework to protect the rights of workers in the oil palm industry.
“In order to prosper, we really have to see to the legislation, policy and regulation. That is the missing link that we’re working on today,” Maneke said.
Morris noted that oil palm was a major agricultural industry in the country as 83 per cent of Papua New Guinea’s oil palm, was operated by Sime Darby, through New Britain Palm Oil Limited.
“In 2014, the minimum wage was set at K3.50 per hour which was to be reviewed after three years but unfortunately, we have turned a blind eye to this and not adjusted the rate,” he said.
Morris added that the minimum wage determination had also exempted agricultural companies and denied Papua New Guineans who work in the industry.
“The Prime Minister wants to drive the agriculture industry, so we need to motivate and incentivise the people who make this industry work,” he said.
Morris said foreign milling companies had become the default regulators in the industry, leaving the Oil Palm Industry Corporation (OPIC) out of the picture and this was because the body did not have any (legal/regulatory) powers to regulate the industry.
“The industry needs an urgent legal policy framework to govern its operations which are the OPIC Authority Bill and Oil Palm Management Bill,” he said. The NationalPG
EU-Corporate Sustainability Due Diligence Directive EU Grain and Oilseeds Sector Welcomes Council General Approach
COCERAL, FEDIOL, and FEFAC, representing the EU grain and oilseed trade, crushing and animal feed industry, welcome the improvements provided by the Council’s General Approach to the Commission’s Proposal on a Directive for Corporate Sustainability Due Diligence. The strengthened risk-based approach and introduction of prioritisation of adverse impacts based on their severity and likelihood would ensure that companies’ efforts are concentrated where they are most needed and can deliver the most impact. This approach is also more aligned with the existing international framework on due diligence practices, which are built on best practices. The Council has also provided a critical and much needed legal clarification to the civil liability regime by specifying more clearly the conditions that need to be met for civil liability to apply. The amended provisions provide more legal certainty for companies and make the important link to failure to comply with the provisions of the Directive. Furthermore, the civil liability would only apply to a company’s own operations, whether alone or in conjunction with other business partners. We believe that as a general principle, civil liability should be limited to cases in which a company has directly caused or contributed to the adverse impact and that it should therefore be limited to own operations and not extend to the actions of a legally distinct third party. However, we regret that the Council did not reinforce the provisions on Union action to support due diligence in third countries, FEDIOL
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Nigeria-Palm Oil: N53bn Import Threatens FG’s Self-Sufficiency Target
Despite forex restriction by the Central Bank of Nigeria (CBN), a total of 63,938 tonnes of crude palm oil valued at N53billion ($76.05million) has been imported through the Lagos port between October and December 2022 by manufacturing firms. Some of the manufacturing firms that import palm oil include Flour Mills of Nigeria, Maahika Nigeria Limited, PZ Wilmar Limited, Wetheral Oil among others. The steady importation, it was gathered, had been threatening Federal Government’s effort to make the country self-sufficient in palm oil production by 2024. CBN had said that the country could reach self-sufficiency in palm oil between 2022 and 2024 and ultimately overtake Thailand and Columbia to become the third-largest producer over the next few years.
However, data by the Nigerian Ports Authority (NPA)’s shipping position revealed that of the 63, 938 tonnes offloaded at the seaports, Capella discharged 18,051tonnes at Rivers Port and 10,000 tonnes at Josepdam, Tincan Island Port. At the Apapa Bulk Terminal Limited (ABTL), Lagos Port, Fairchem Tiger arrived on Monday this week with 4,000 tonnes, while Bruno offloaded 19,887tonnes to ENL in October and Marie S, 12,000 tonnes at ABTL. Findings revealed that the price of the commodity had reached $1,200 from $720 per tonne in the global market. However, Fitch Ratings said that it expected average crude palm oil prices to be significantly lower in 2023, as industry output would likely to be higher. It noted: “We assume Malaysian benchmark crude palm oil prices to average $800/tonne in 2023, compared with $1,200/tonne in 2022.” Last year, 425, 000 tonnes of palm oil valued at $445.47million were imported into the country from the estimated total $50.8 billion sold globally in 2021. Overall, the value of palm oil imports has accelerated by 51per cent for all importing countries since 2017. It was learnt that on year over year, globally imported palm oil increased by 50 per cent from $33.8 billion during 2020. New Telegraph NG
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Edo reaffirms commitment to driving sustainable commodities in Africa
As part of its commitment to ensuring sustainable and responsible production of oil palm, cocoa, coffee, rubber and other tree crops, Edo State Government has signed the Africa Sustainable Commodities Initiative (ASCI) Declaration at the United Nations (UN) Conference (CoP27) in Sharm el-sheikh, in Egypt.
The Declaration was signed by members from 10 African countries, making Edo State the front-runner and only sub-national to seal this process.
According to the UN Conference, the declaration is targeted at ensuring that producer countries in Africa are at the forefront of defining the principles for the sustainable development of cocoa, rubber, palm oil, coffee and other commodities in a way that protects livelihoods and protects natural resources including forests. GuardianNG
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Papua New Guinea-Oil palm industry to be regulated: Maneke
THE oil palm industry will soon have a new legislative and regulatory framework to guide key players, says Oil Palm Minister Francis Maneke.
“As we know, the oil palm industry is a very old one with the legislation covering the industry only an extension service legislation. We will have to do more consultation to work on the legislation, policy and framework which is now halfway done,” he said.
Maneke said he was working on a 100-day plan which included developing legislation, a new policy and regulatory framework to drive the industry.
He revealed this yesterday in Parliament, in response to Alotau MP Ricky Morris’s questions about introducing a regulatory framework to protect the rights of workers in the oil palm industry.
“In order to prosper, we really have to see to the legislation, policy and regulation. That is the missing link that we’re working on today,” Maneke said.
Morris noted that oil palm was a major agricultural industry in the country as 83 per cent of Papua New Guinea’s oil palm, was operated by Sime Darby, through New Britain Palm Oil Limited.
“In 2014, the minimum wage was set at K3.50 per hour which was to be reviewed after three years but unfortunately, we have turned a blind eye to this and not adjusted the rate,” he said.
Morris added that the minimum wage determination had also exempted agricultural companies and denied Papua New Guineans who work in the industry.
“The Prime Minister wants to drive the agriculture industry, so we need to motivate and incentivise the people who make this industry work,” he said.
Morris said foreign milling companies had become the default regulators in the industry, leaving the Oil Palm Industry Corporation (OPIC) out of the picture and this was because the body did not have any (legal/regulatory) powers to regulate the industry.
“The industry needs an urgent legal policy framework to govern its operations which are the OPIC Authority Bill and Oil Palm Management Bill,” he said. The NationalPG
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December 01, 2022
Roundtable on Sustainable Palm Oil: 19 years is enough
This year's general assembly of the Roundtable on Sustainable Palm Oil (RSPO), which begins on 1 December 2022 in Malaysia, marks the alliance’s 19th anniversary. For nearly two decades now, the RSPO has failed in its mission to make the industrial palm oil sector “sustainable”. Instead, it has been used by the palm oil industry to greenwash environmental destruction, labour and human rights abuses and land grabbing.
We, and other organisations working with communities affected by industrial oil palm plantations, have repeatedly denounced the RSPO for its failure to address the grievances of communities whose lands were taken by palm oil companies. The fundamental problems with the institution and its certification scheme are described in detail in international statements signed by organisations from around the world in 2008 and in 2018, and recently in reports published in 2021 on the failure of RSPO to prevent deforestation, consult affected communities and address their grievances (here and here).
Today, we find that nothing has changed. While the area of land under RSPO-certified oil palm plantations has continued to grow, the RSPO has continued to be a great deception. Farm Land Grab
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Step up shared responsibility concept to boost certified palm oil uptake, says RSPO
KUALA LUMPUR (Nov 30): The Round Table on Sustainable Palm Oil (RSPO) is disappointed that there is no improvement in the uptake of certified palm oil, saying this is sending the wrong message to oil palm growers.
“We cannot continue to accept that the uptake of certified palm oil today is only 64%. It is terrible and sends the wrong message to growers [as it] continues to push some people away from the RSPO, instead of attracting them in,” said RSPO co-chair Datuk Carl Bek-Nielsen.
Bek-Nielsen said there is a need for all RSPO members to step up implementing and operationalising the concept of “shared responsibility” as sustainability is a collective mission requiring critical individual changes.
“The reluctance by some to step up and take ownership must stop. Remember that this is a collective mission where shared sustainability is the shared objective, therefore requiring [critical] individual changes,” he told local and foreign stakeholders and players from the palm oil industry at the second day of the RSPO Annual Roundtable Conference on Sustainable Palm Oil (RT2022) on Wednesday (Nov 30). The Edge Markets
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New scorecard reveals that consumer goods companies fail to uphold human rights in their palm oil supply chains
WASHINGTON – A scorecard released today by Friends of the Earth U.S. finds that the world’s largest and most recognizable consumer goods companies are failing to hold destructive palm oil supplier Astra Agro Lestari (AAL) accountable for ongoing human rights and environmental violations in Central and West Sulawesi, Indonesia.
The scorecard, which coincides with the Roundtable on Sustainable Palm Oil (RSPO)’s annual meeting this week in Kuala Lumpur, Malaysia, shows that many consumer goods companies continue to source palm oil from AAL despite the company’s well-documented abuses. Kellogg’s, PepsiCo and Mondelez ranked the worst, while Hershey’s and Procter & Gamble scored higher in part due to their recent decisions to suspend business ties with AAL.
Brands are also failing to push the palm oil company to return stolen land back to communities and provide compensation for environmental devastation and the loss of land and livelihoods. Notably, all sixteen consumer brands with supply chain links to AAL are RSPO members. foe.org/news/scorecard-consumer-goods/FOE
Palm oil news. December 2022. CSPO Watch
Roundtable on Sustainable Palm Oil: 19 years is enough
This year's general assembly of the Roundtable on Sustainable Palm Oil (RSPO), which begins on 1 December 2022 in Malaysia, marks the alliance’s 19th anniversary. For nearly two decades now, the RSPO has failed in its mission to make the industrial palm oil sector “sustainable”. Instead, it has been used by the palm oil industry to greenwash environmental destruction, labour and human rights abuses and land grabbing.
We, and other organisations working with communities affected by industrial oil palm plantations, have repeatedly denounced the RSPO for its failure to address the grievances of communities whose lands were taken by palm oil companies. The fundamental problems with the institution and its certification scheme are described in detail in international statements signed by organisations from around the world in 2008 and in 2018, and recently in reports published in 2021 on the failure of RSPO to prevent deforestation, consult affected communities and address their grievances (here and here).
Today, we find that nothing has changed. While the area of land under RSPO-certified oil palm plantations has continued to grow, the RSPO has continued to be a great deception. Farm Land Grab
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Step up shared responsibility concept to boost certified palm oil uptake, says RSPO
KUALA LUMPUR (Nov 30): The Round Table on Sustainable Palm Oil (RSPO) is disappointed that there is no improvement in the uptake of certified palm oil, saying this is sending the wrong message to oil palm growers.
“We cannot continue to accept that the uptake of certified palm oil today is only 64%. It is terrible and sends the wrong message to growers [as it] continues to push some people away from the RSPO, instead of attracting them in,” said RSPO co-chair Datuk Carl Bek-Nielsen.
Bek-Nielsen said there is a need for all RSPO members to step up implementing and operationalising the concept of “shared responsibility” as sustainability is a collective mission requiring critical individual changes.
“The reluctance by some to step up and take ownership must stop. Remember that this is a collective mission where shared sustainability is the shared objective, therefore requiring [critical] individual changes,” he told local and foreign stakeholders and players from the palm oil industry at the second day of the RSPO Annual Roundtable Conference on Sustainable Palm Oil (RT2022) on Wednesday (Nov 30). The Edge Markets
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New scorecard reveals that consumer goods companies fail to uphold human rights in their palm oil supply chains
WASHINGTON – A scorecard released today by Friends of the Earth U.S. finds that the world’s largest and most recognizable consumer goods companies are failing to hold destructive palm oil supplier Astra Agro Lestari (AAL) accountable for ongoing human rights and environmental violations in Central and West Sulawesi, Indonesia.
The scorecard, which coincides with the Roundtable on Sustainable Palm Oil (RSPO)’s annual meeting this week in Kuala Lumpur, Malaysia, shows that many consumer goods companies continue to source palm oil from AAL despite the company’s well-documented abuses. Kellogg’s, PepsiCo and Mondelez ranked the worst, while Hershey’s and Procter & Gamble scored higher in part due to their recent decisions to suspend business ties with AAL.
Brands are also failing to push the palm oil company to return stolen land back to communities and provide compensation for environmental devastation and the loss of land and livelihoods. Notably, all sixteen consumer brands with supply chain links to AAL are RSPO members. foe.org/news/scorecard-consumer-goods/FOE
Palm oil news. December 2022. CSPO Watch
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