Palm Oil News February 2025
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February 28, 2025
Indonesia lawmakers say Indigenous rights bill inching closer
What’s the context?
Indonesia could pass a landmark Indigenous Peoples bill this year after almost two decades in limbo.
Indigenous communities have sought recognition law for decades
Lawmakers could pass the Indigenous Peoples bill this year
Legislation would help Indigenous protection of environment
JAKARTA - Indonesia's parliament could pass a long-awaited Indigenous rights bill this year that would help protect communities and critical ecosystems, according to lawmakers and activists.
The bill, which has been languishing in the legislature for more than 14 years, has been placed on a list of top priority bills for 2025 called Prolegnas.
It would replace a patchwork of laws that has failed to secure land rights for Indigenous communities which have long been subject to human rights abuses, including land grabbing, that create displacement and food insecurity.
The bill would grant much-needed legal rights and recognition of land and natural resources, according to supporters.
"Over the years, Indigenous communities have been facing legal uncertainty, and they have been marginalised as a result," said Arzeti Bilbina, a member of the National Awakening Party (PKB) in the country's ruling coalition.
"That's why we're pushing to pass the bill hopefully this year," she told Context. "It has been long overdue." Context
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SD Guthrie seeks to grow recent acquisition amid downstream push
KUALA LUMPUR (Feb 27): SD Guthrie Bhd (KL:SDG) said it is seeking to grow a recent acquisition of a Netherlands-based animal feed and biofuel supplier, as the world's largest palm oil producer pushes further downstream and taps new markets.
The company intends to play an active role in Marvesa Supply Chain Services BV to drive overall growth, particularly through new product development and market expansion, SD Guthrie managing director Datuk Mohamad Helmy Othman Basha said at an earnings briefing on Thursday.
“With a stronger presence in Europe, we see opportunities to actively contribute to this business for the group’s benefit," he said. “We are looking at developing new products and tapping into new markets.”
SD Guthrie, which has been pushing downstream for growth amid limited opportunities for expansion upstream and volatile commodity market, acquired the 48% stake in Marvesa for €54 million (RM250 million).
The downstream segment contributed about 21% of SD Guthrie’s profit before interest and tax in FY2024, while upstream accounted for 79%. The company also has a renewable energy business which is still in its infancy.
For now, SD Guthrie’s share of earnings would be between US$10 million and US$15 million annually, chief financial officer Renaka Ramachandran said at the same briefing.
While the immediate contribution from Marvesa is not significant to SD Guthrie that made RM2.16 billion in 2024, SD Guthrie has an option to acquire full ownership over time, she noted. The Edge
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Malaysia, China Forge Stronger Ties in Palm Oil, Automotive to Meet Global Demand
The year 2025 will see Malaysia and China further strengthening collaboration in palm oil supply chains, technological innovation and market expansion, while working together to enhance industry upgrading and expand the value of palm oil applications in food, high-end personal care products, pharmaceuticals and renewable energy.
“The Malaysian Palm Oil Board is deepening cooperation with Chinese universities, research institutions and enterprises, particularly in research and development (R&D) as well as market transformation.
“Our joint efforts are developing more nutritious edible palm oil, healthier personal care products and more environmentally friendly biofuels, ensuring that these innovations reach the market swiftly,” said Deputy Plantation and Commodities Minister Datuk Chan Foong Hin during the Malaysia-China 30 Chief Executive Officers Forum on Oils and Fats.
The forum was organised by the Ministry of Plantation and Commodities in partnership with Beijing Heyirong Invest Group, co-organised by the China-Malaysia Qinzhou Industrial Park and supported by the Dalian Commodity Exchange (DCE) and Shanghai Bairong Industrial Co Ltd.
Additionally, Chan said that through co-development with China’s food processing, fast-moving consumer goods (FMCG) and renewable energy companies, the ministry aimed to accelerate the commercialization of high-value palm oil products, allowing Chinese consumers to enjoy superior-quality palm oil products sooner.
“We (Malaysia) hope to further enhance supply chain collaboration, whether in long-term procurement strategies or brand promotion in China’s consumer market, working together to broaden the application of palm oil products across China,” the deputy minister added.
In 2024, Malaysia’s exports of palm oil and palm-based products to China reached a value of RM10.57 billion.
“Among these, the export volume of palm kernel oil saw a significant increase of 40%, mainly supplied to China’s oleochemical industry to product surfactants. We sincerely appreciate the long-term support from China’s oil and fat industry,” he concluded.
Aside from palm oil, China is also partnering with Malaysia in the automotive industry, as China-based Sanly and Jujin signed a joint venture agreement with Malaysia-based EP Manufacturing Bhd (EPMB), in efforts to localise the production of key automotive components for the Proton Saga MC3.
In a statement, EPMB said its subsidiary, PEPS-JV (M) Sdn Bhd partnered with Sanly to manufacture front corner modules, subframe modules and rear axle assemblies.
“The agreement, signed on 18 February 2025, integrates Sanly’s advanced metalworking technologies with EPMB’s operations in Batang Kali, strengthening the supply chain and enhancing efficiency.
“This collaboration aligns with the strategic initiatives for the Ministry of Investment, trade and Industry (MITI) and the Malaysian Investment Development Authority (MIDA), fostering technology transfer and boosting local manufacturing capabilities,” it said.
EPMB added that by leveraging Sanly’s expertise, it aims to offer competitive pricing and optimized ex-factory costs, providing original equipment manufacturers with improved costs, providing original equipment manufacturers with improved cost efficiency and quality assurance.
Meanwhile, EPMB executive director Aidan Hamidon said, “By combining Sanly’s advanced metalworking expertise with EPMB’s local manufacturing capabilities, we aim set new benchmarks in automotive component supply.” SME
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Malaysia Aviation Group and FatHopes Energy partner to drive SAF innovation
Malaysia Aviation Group (MAG) has signed a memorandum of understanding (MoU) with FatHopes Energy (FHE) to explore the potential of used cooking oil (UCO) as feedstock for Sustainable Aviation Fuel (SAF) production in Malaysia.
Through this partnership, FHE will provide advisory expertise to MAG, ensuring UCO collection meets sustainability standards and regulatory requirements. FHE will also offer technical support to facilitate the collection, processing, and conversion of UCO into neat SAF, ensuring compliance with both environmental and industry regulations.
This collaboration is key to assessing the scalability of SAF production for national adoption. By evaluating the economic feasibility, environmental impact, and logistical challenges of collecting, processing, and converting UCO into SAF, the partnership aims to unlock SAF's full potential as a viable and sustainable alternative to conventional jet fuel, contributing to the aviation sector’s carbon footprint reduction.
FHE and MAG will actively collaborate with airports, fuel suppliers, and other airlines, leveraging shared expertise and best practices to enhance the efficiency and commercial viability of SAF development in Malaysia.
This partnership will also focus on a comprehensive assessment of all airports within MAG’s network to evaluate existing infrastructure and identify necessary enhancements required for SAF deployment.
This initiative aligns with the Airports of Tomorrow project, a joint effort by Airports Council International (ACI) World and the World Economic Forum (WEF), launched in June 2023.
The project aims to accelerate aviation decarbonisation by transforming airports from traditional passenger hubs into dynamic energy centres, driving the sector towards its net-zero carbon emissions target by 2050.
This collaboration builds on FatHopes Energy’s earlier partnership with Topsoe, focused on developing a SAF refinery in Malaysia using UCO and other water-based oils.
Together, these efforts aim to establish a sustainable production ecosystem and resilient supply chain, further supporting Malaysia’s sustainability ambitions in the aviation sector. Biofuels News
Indonesia lawmakers say Indigenous rights bill inching closer
What’s the context?
Indonesia could pass a landmark Indigenous Peoples bill this year after almost two decades in limbo.
Indigenous communities have sought recognition law for decades
Lawmakers could pass the Indigenous Peoples bill this year
Legislation would help Indigenous protection of environment
JAKARTA - Indonesia's parliament could pass a long-awaited Indigenous rights bill this year that would help protect communities and critical ecosystems, according to lawmakers and activists.
The bill, which has been languishing in the legislature for more than 14 years, has been placed on a list of top priority bills for 2025 called Prolegnas.
It would replace a patchwork of laws that has failed to secure land rights for Indigenous communities which have long been subject to human rights abuses, including land grabbing, that create displacement and food insecurity.
The bill would grant much-needed legal rights and recognition of land and natural resources, according to supporters.
"Over the years, Indigenous communities have been facing legal uncertainty, and they have been marginalised as a result," said Arzeti Bilbina, a member of the National Awakening Party (PKB) in the country's ruling coalition.
"That's why we're pushing to pass the bill hopefully this year," she told Context. "It has been long overdue." Context
--------
SD Guthrie seeks to grow recent acquisition amid downstream push
KUALA LUMPUR (Feb 27): SD Guthrie Bhd (KL:SDG) said it is seeking to grow a recent acquisition of a Netherlands-based animal feed and biofuel supplier, as the world's largest palm oil producer pushes further downstream and taps new markets.
The company intends to play an active role in Marvesa Supply Chain Services BV to drive overall growth, particularly through new product development and market expansion, SD Guthrie managing director Datuk Mohamad Helmy Othman Basha said at an earnings briefing on Thursday.
“With a stronger presence in Europe, we see opportunities to actively contribute to this business for the group’s benefit," he said. “We are looking at developing new products and tapping into new markets.”
SD Guthrie, which has been pushing downstream for growth amid limited opportunities for expansion upstream and volatile commodity market, acquired the 48% stake in Marvesa for €54 million (RM250 million).
The downstream segment contributed about 21% of SD Guthrie’s profit before interest and tax in FY2024, while upstream accounted for 79%. The company also has a renewable energy business which is still in its infancy.
For now, SD Guthrie’s share of earnings would be between US$10 million and US$15 million annually, chief financial officer Renaka Ramachandran said at the same briefing.
While the immediate contribution from Marvesa is not significant to SD Guthrie that made RM2.16 billion in 2024, SD Guthrie has an option to acquire full ownership over time, she noted. The Edge
--------
Malaysia, China Forge Stronger Ties in Palm Oil, Automotive to Meet Global Demand
The year 2025 will see Malaysia and China further strengthening collaboration in palm oil supply chains, technological innovation and market expansion, while working together to enhance industry upgrading and expand the value of palm oil applications in food, high-end personal care products, pharmaceuticals and renewable energy.
“The Malaysian Palm Oil Board is deepening cooperation with Chinese universities, research institutions and enterprises, particularly in research and development (R&D) as well as market transformation.
“Our joint efforts are developing more nutritious edible palm oil, healthier personal care products and more environmentally friendly biofuels, ensuring that these innovations reach the market swiftly,” said Deputy Plantation and Commodities Minister Datuk Chan Foong Hin during the Malaysia-China 30 Chief Executive Officers Forum on Oils and Fats.
The forum was organised by the Ministry of Plantation and Commodities in partnership with Beijing Heyirong Invest Group, co-organised by the China-Malaysia Qinzhou Industrial Park and supported by the Dalian Commodity Exchange (DCE) and Shanghai Bairong Industrial Co Ltd.
Additionally, Chan said that through co-development with China’s food processing, fast-moving consumer goods (FMCG) and renewable energy companies, the ministry aimed to accelerate the commercialization of high-value palm oil products, allowing Chinese consumers to enjoy superior-quality palm oil products sooner.
“We (Malaysia) hope to further enhance supply chain collaboration, whether in long-term procurement strategies or brand promotion in China’s consumer market, working together to broaden the application of palm oil products across China,” the deputy minister added.
In 2024, Malaysia’s exports of palm oil and palm-based products to China reached a value of RM10.57 billion.
“Among these, the export volume of palm kernel oil saw a significant increase of 40%, mainly supplied to China’s oleochemical industry to product surfactants. We sincerely appreciate the long-term support from China’s oil and fat industry,” he concluded.
Aside from palm oil, China is also partnering with Malaysia in the automotive industry, as China-based Sanly and Jujin signed a joint venture agreement with Malaysia-based EP Manufacturing Bhd (EPMB), in efforts to localise the production of key automotive components for the Proton Saga MC3.
In a statement, EPMB said its subsidiary, PEPS-JV (M) Sdn Bhd partnered with Sanly to manufacture front corner modules, subframe modules and rear axle assemblies.
“The agreement, signed on 18 February 2025, integrates Sanly’s advanced metalworking technologies with EPMB’s operations in Batang Kali, strengthening the supply chain and enhancing efficiency.
“This collaboration aligns with the strategic initiatives for the Ministry of Investment, trade and Industry (MITI) and the Malaysian Investment Development Authority (MIDA), fostering technology transfer and boosting local manufacturing capabilities,” it said.
EPMB added that by leveraging Sanly’s expertise, it aims to offer competitive pricing and optimized ex-factory costs, providing original equipment manufacturers with improved costs, providing original equipment manufacturers with improved cost efficiency and quality assurance.
Meanwhile, EPMB executive director Aidan Hamidon said, “By combining Sanly’s advanced metalworking expertise with EPMB’s local manufacturing capabilities, we aim set new benchmarks in automotive component supply.” SME
---------
Malaysia Aviation Group and FatHopes Energy partner to drive SAF innovation
Malaysia Aviation Group (MAG) has signed a memorandum of understanding (MoU) with FatHopes Energy (FHE) to explore the potential of used cooking oil (UCO) as feedstock for Sustainable Aviation Fuel (SAF) production in Malaysia.
Through this partnership, FHE will provide advisory expertise to MAG, ensuring UCO collection meets sustainability standards and regulatory requirements. FHE will also offer technical support to facilitate the collection, processing, and conversion of UCO into neat SAF, ensuring compliance with both environmental and industry regulations.
This collaboration is key to assessing the scalability of SAF production for national adoption. By evaluating the economic feasibility, environmental impact, and logistical challenges of collecting, processing, and converting UCO into SAF, the partnership aims to unlock SAF's full potential as a viable and sustainable alternative to conventional jet fuel, contributing to the aviation sector’s carbon footprint reduction.
FHE and MAG will actively collaborate with airports, fuel suppliers, and other airlines, leveraging shared expertise and best practices to enhance the efficiency and commercial viability of SAF development in Malaysia.
This partnership will also focus on a comprehensive assessment of all airports within MAG’s network to evaluate existing infrastructure and identify necessary enhancements required for SAF deployment.
This initiative aligns with the Airports of Tomorrow project, a joint effort by Airports Council International (ACI) World and the World Economic Forum (WEF), launched in June 2023.
The project aims to accelerate aviation decarbonisation by transforming airports from traditional passenger hubs into dynamic energy centres, driving the sector towards its net-zero carbon emissions target by 2050.
This collaboration builds on FatHopes Energy’s earlier partnership with Topsoe, focused on developing a SAF refinery in Malaysia using UCO and other water-based oils.
Together, these efforts aim to establish a sustainable production ecosystem and resilient supply chain, further supporting Malaysia’s sustainability ambitions in the aviation sector. Biofuels News
February 27, 2025
AI-powered palm oil mill saves RM1.6mil a year, cuts foreign labour by 33pct
KUALA LUMPUR: The first Artificial Intelligence (AI)-powered palm oil mill in Malaysia has demonstrated significant cost savings and reduced reliance on foreign labour, saving an average of RM16 million a year and a 33 per cent reduction in foreign workers.
Located in Kuala Kangsar, the mill — operating at a capacity of 45 metric tonnes per hour — had reduced processing costs by an estimated RM1.6 million per year due to lower oil losses and maintenance expenses.
"Initially, the mill employed 66 foreign workers, but with AI, the number has dropped to just 44 — a 33 per cent reduction, equivalent to RM1.1 million in wage savings," said Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani in the Dewan Rakyat.
Johari, who is also Titiwangsa member of Parliament, said the AI system installed only cost RM5 million, meaning the investment can be recouped within two years.
Responding to concerns raised by Hulu Terengganu MP Datuk Rosol Wahid about potential job losses due to the use of advanced technology, Johari dismissed the fear.
"What is most important is that this technology can transform the industry's profile from reliance on foreign workers to employing more locals," he said.
He stressed that AI-based operations require skilled local workers for monitoring, shifting jobs towards higher-income opportunities.
"Many of these technologies require expertise to manage AI, making them more aligned with high-income jobs," Johari said.
He first spoke about the mill, Minsawi Industries, a palm oil mill that has been in operation for 41 years, in November of last year.
Minsawi, in partnership with Airei Sdn Bhd, integrated AI, sensors, and predictive tools to streamline the processing of palm oil.
"If this technology proves effective, it should be considered by all stakeholders in the palm oil sector," Johari told reporters. New Straits Times
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FGV Holdings says palm oil output growth to continue in 2025
KUALA LUMPUR (Reuters) - One of the world's biggest palm oil producers, FGV Holdings, expects output to rise between 1% and 3% in 2025 on the year, boosted by improvements in yields and oil extraction rate, its chief executive told Reuters on Wednesday.
The company's efforts to replace old plantation have helped increase yields of fresh fruit bunches and the rate of oil extraction has also risen, promising higher crude palm oil output in 2025, said Fakhrunniam Othman.
"Our oil extraction rate (OER) is also improving, where we are targeting about 20.8% to 21% compared to last year's value of 20.61%," he said in an interview, referring to the proportion of oil extracted from fresh fruit bunches.
With oil palm plantations in Malaysia and Indonesia, FGV has a total area of 333,765 hectares (824,750 acres) planted to oil palm.
The company's replanting rate averaged about 5% in recent years, exceeding the national target of 4%, as it aimed to have 80% of its trees in peak condition, Fakhrunniam said.
He added that it planned to replant 14,000 hectares this year, slightly below the 18,000 hectares it achieved last year.
The company has been using new varieties during replantation that are yielding better results than the older varieties.
Palm oil's current price premium over soyoil has led to lower demand from countries such as India and China, which will bring down prices in the later part of the year, he said.
Crude palm oil prices in 2025 are likely to average between 3,900 ringgit and 4,200 ringgit a ton, lower than the current price of about 4,600 ringgit, Fakhrunniam said. Investing
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Indonesia Asks EU to Adjust Palm Oil Policies
KBRN, Jakarta: Indonesia asked the European Union (EU) to adjust its palm oil policies in line with the World Trade Organization (WTO) provisions. It was stated by the Second Deputy of the Indonesian Permanent Representative to the United Nations (UN), WTO, and Other International Organizations, Nur Rachman Setyoko.
Previously, the WTO Dispute Settlement Body had adopted the final report of Indonesia's trade dispute with the EU regarding the commodity. The WTO panel reported that the EU, through its trade policies, has harmed palm oil-based biofuel from Indonesia.
The panel also found that the EU failed to review data to determine the high-risk palm oil land conversion biofuels category. Therefore, the EU must adjust its policies to the WTO ruling delivered on Monday (24/2/2025) in Geneva, Switzerland.
"Referring to the WTO Panel's recommendations, the EU needs to adjust its policies regarding palm oil commodities," Rachman said on Tuesday (26/2/2025).
The policy, he continued, must be in line with WTO agreements, predictability, and fair trade practices in the multilateral trading system. According to Rachman, Indonesia has submitted a number of claims and strong evidence that the EU's steps are inconsistent with the WTO agreement. However, Rachman said Indonesia is ready to dialogue with the EU to reach positive resolutions on the dispute.
"We show that the EU's reasons for climate change, biodiversity, and moral protection are unrelated to the policy... We will monitor the implementation closely and encourage rapid compliance," he said.
Russia, Brazil, and St. Vincent and the Grenadines support Indonesia's stance in its palm oil dispute with the EU. They say the EU's policies are seen as targeting commodities produced by developing and less developed countries under the pretext of protecting the environment. RRI
--------
Malaysian Minister Johari Expects Full Utilisation Of RM100 Mln Palm Oil Replanting Assistance By June
KUALA LUMPUR, Feb 27 (Bernama) -- The Ministry of Plantation and Commodities expects the RM100 million assistance for the palm oil replanting programme to be fully utilised by smallholders by June this year.
Its minister, Datuk Seri Johari Abdul Ghani said that the ministry will request an additional special allocation of RM100 million from the Ministry of Finance if the initial replanting assistance is fully utilised.
“Some of these smallholders are elderly and are unable to take out full bank loans. Therefore, we will help them with a 50 per cent grant and a 50 per cent finance from the bank (Agrobank),” he said after the “Agarwood: Diamond of The Forest”, book launch, here today.
Johari said Malaysia only managed to replant 114,000 hectares (ha) or 2.0 per cent of the total planted area in 2024, down from 132,000ha (2.3 per cent) in 2023.
The recommended annual target is between four and five per cent, or approximately 285,000ha per year.
Speaking about the agarwood industry, the minister expressed his intention to bring together industry players to share information with the Malaysian Timber Industry Board (MTIB), especially in the areas of production and grading of agarwood types.
“Through MTIB, we hope to establish a committee or subcommittee and bring in experts from abroad, if necessary, to provide knowledge on how to improve grading and produce certifications for it.
“This is a natural resource with significant potential, allowing us to enhance and create value for the country,” said Johari.
Agarwood has significant value in the international market, particularly in perfume production, with prices reaching up to US$100,000 (US$1=RM4.425) per kilogramme.
The current market value of the agarwood industry is estimated to be around US$1 billion, he said. -- BERNAMA
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AI-powered palm oil mill saves RM1.6mil a year, cuts foreign labour by 33pct
KUALA LUMPUR: The first Artificial Intelligence (AI)-powered palm oil mill in Malaysia has demonstrated significant cost savings and reduced reliance on foreign labour, saving an average of RM16 million a year and a 33 per cent reduction in foreign workers.
Located in Kuala Kangsar, the mill — operating at a capacity of 45 metric tonnes per hour — had reduced processing costs by an estimated RM1.6 million per year due to lower oil losses and maintenance expenses.
"Initially, the mill employed 66 foreign workers, but with AI, the number has dropped to just 44 — a 33 per cent reduction, equivalent to RM1.1 million in wage savings," said Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani in the Dewan Rakyat.
Johari, who is also Titiwangsa member of Parliament, said the AI system installed only cost RM5 million, meaning the investment can be recouped within two years.
Responding to concerns raised by Hulu Terengganu MP Datuk Rosol Wahid about potential job losses due to the use of advanced technology, Johari dismissed the fear.
"What is most important is that this technology can transform the industry's profile from reliance on foreign workers to employing more locals," he said.
He stressed that AI-based operations require skilled local workers for monitoring, shifting jobs towards higher-income opportunities.
"Many of these technologies require expertise to manage AI, making them more aligned with high-income jobs," Johari said.
He first spoke about the mill, Minsawi Industries, a palm oil mill that has been in operation for 41 years, in November of last year.
Minsawi, in partnership with Airei Sdn Bhd, integrated AI, sensors, and predictive tools to streamline the processing of palm oil.
"If this technology proves effective, it should be considered by all stakeholders in the palm oil sector," Johari told reporters. New Straits Times
--------
FGV Holdings says palm oil output growth to continue in 2025
KUALA LUMPUR (Reuters) - One of the world's biggest palm oil producers, FGV Holdings, expects output to rise between 1% and 3% in 2025 on the year, boosted by improvements in yields and oil extraction rate, its chief executive told Reuters on Wednesday.
The company's efforts to replace old plantation have helped increase yields of fresh fruit bunches and the rate of oil extraction has also risen, promising higher crude palm oil output in 2025, said Fakhrunniam Othman.
"Our oil extraction rate (OER) is also improving, where we are targeting about 20.8% to 21% compared to last year's value of 20.61%," he said in an interview, referring to the proportion of oil extracted from fresh fruit bunches.
With oil palm plantations in Malaysia and Indonesia, FGV has a total area of 333,765 hectares (824,750 acres) planted to oil palm.
The company's replanting rate averaged about 5% in recent years, exceeding the national target of 4%, as it aimed to have 80% of its trees in peak condition, Fakhrunniam said.
He added that it planned to replant 14,000 hectares this year, slightly below the 18,000 hectares it achieved last year.
The company has been using new varieties during replantation that are yielding better results than the older varieties.
Palm oil's current price premium over soyoil has led to lower demand from countries such as India and China, which will bring down prices in the later part of the year, he said.
Crude palm oil prices in 2025 are likely to average between 3,900 ringgit and 4,200 ringgit a ton, lower than the current price of about 4,600 ringgit, Fakhrunniam said. Investing
--------
Indonesia Asks EU to Adjust Palm Oil Policies
KBRN, Jakarta: Indonesia asked the European Union (EU) to adjust its palm oil policies in line with the World Trade Organization (WTO) provisions. It was stated by the Second Deputy of the Indonesian Permanent Representative to the United Nations (UN), WTO, and Other International Organizations, Nur Rachman Setyoko.
Previously, the WTO Dispute Settlement Body had adopted the final report of Indonesia's trade dispute with the EU regarding the commodity. The WTO panel reported that the EU, through its trade policies, has harmed palm oil-based biofuel from Indonesia.
The panel also found that the EU failed to review data to determine the high-risk palm oil land conversion biofuels category. Therefore, the EU must adjust its policies to the WTO ruling delivered on Monday (24/2/2025) in Geneva, Switzerland.
"Referring to the WTO Panel's recommendations, the EU needs to adjust its policies regarding palm oil commodities," Rachman said on Tuesday (26/2/2025).
The policy, he continued, must be in line with WTO agreements, predictability, and fair trade practices in the multilateral trading system. According to Rachman, Indonesia has submitted a number of claims and strong evidence that the EU's steps are inconsistent with the WTO agreement. However, Rachman said Indonesia is ready to dialogue with the EU to reach positive resolutions on the dispute.
"We show that the EU's reasons for climate change, biodiversity, and moral protection are unrelated to the policy... We will monitor the implementation closely and encourage rapid compliance," he said.
Russia, Brazil, and St. Vincent and the Grenadines support Indonesia's stance in its palm oil dispute with the EU. They say the EU's policies are seen as targeting commodities produced by developing and less developed countries under the pretext of protecting the environment. RRI
--------
Malaysian Minister Johari Expects Full Utilisation Of RM100 Mln Palm Oil Replanting Assistance By June
KUALA LUMPUR, Feb 27 (Bernama) -- The Ministry of Plantation and Commodities expects the RM100 million assistance for the palm oil replanting programme to be fully utilised by smallholders by June this year.
Its minister, Datuk Seri Johari Abdul Ghani said that the ministry will request an additional special allocation of RM100 million from the Ministry of Finance if the initial replanting assistance is fully utilised.
“Some of these smallholders are elderly and are unable to take out full bank loans. Therefore, we will help them with a 50 per cent grant and a 50 per cent finance from the bank (Agrobank),” he said after the “Agarwood: Diamond of The Forest”, book launch, here today.
Johari said Malaysia only managed to replant 114,000 hectares (ha) or 2.0 per cent of the total planted area in 2024, down from 132,000ha (2.3 per cent) in 2023.
The recommended annual target is between four and five per cent, or approximately 285,000ha per year.
Speaking about the agarwood industry, the minister expressed his intention to bring together industry players to share information with the Malaysian Timber Industry Board (MTIB), especially in the areas of production and grading of agarwood types.
“Through MTIB, we hope to establish a committee or subcommittee and bring in experts from abroad, if necessary, to provide knowledge on how to improve grading and produce certifications for it.
“This is a natural resource with significant potential, allowing us to enhance and create value for the country,” said Johari.
Agarwood has significant value in the international market, particularly in perfume production, with prices reaching up to US$100,000 (US$1=RM4.425) per kilogramme.
The current market value of the agarwood industry is estimated to be around US$1 billion, he said. -- BERNAMA
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February 26, 2025
Indonesia wins at WTO, EU must “adjust Palm Oil policy”
Indonesia has secured a victory in an international trade dispute at the World Trade Organization (WTO) after the WTO Dispute Settlement Body (DSB) adopted the final report on case DS593 concerning the European Union’s (EU) policies on palm oil and palm oil-based biofuels.
In the report, which was published on January 20, 2025, the WTO Panel confirmed that the EU's policies were discriminatory against palm oil-based biofuels from Indonesia compared to similar products produced in the EU, such as rapeseed and sunflower oil.
Furthermore, the Panel found that the EU had failed to properly review the data used to classify biofuels under the high indirect land-use change (high ILUC-risk) category and had shortcomings in the formulation and implementation of low ILUC-risk certification criteria under the Renewable Energy Directive (RED) II.
“Referring to the Panel’s recommendations, the EU must adjust its policies to comply with WTO agreements. The predictability and fairness of trade practices in the multilateral trade system have been upheld. Therefore, Indonesia proposed that the DSB adopt the Panel report,” Deputy Indonesian Permanent Representative to the UN, WTO, and other International Organizations, Ambassador Nur Rachman Setyoko, said as quoted in a statement on Tuesday, February 25, 2025.
Throughout the panel process, Indonesia presented various claims and evidence that strengthened its argument that the EU’s measures were inconsistent with WTO rules. Indonesia successfully demonstrated that the EU’s rationale related to climate change, biodiversity, and moral protection lacked a strong basis for the policies imposed on palm oil and palm oil-based biodiesel.
"Indonesia is ready for constructive dialogue with the EU to reach a positive resolution through the implementation process within an agreed timeframe. We will closely monitor the implementation and push for swift compliance,” Setyoko said.
This decision has received support from Russia, Brazil, and St. Vincent and the Grenadines, representing the African, Caribbean, and Pacific group. They expressed concerns about trade restrictions that often target commodities from developing countries under the pretext of environmental protection.
With this decision, Indonesia has successfully defended its trade rights on the international stage and ensured that trade policies operate fairly in accordance with WTO regulations. The Indonesian government will continue to oversee the implementation of this ruling to ensure the EU complies with the dispute settlement outcome. Indonesia Business Post
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Palm oil industry leaders call for sustainable practices in yield improvement
KUALA LUMPUR (Feb 25): As palm oil demand surges, there is a need for yield improvement through sustainable practices to address the potential demand and supply imbalances.
This according to industry leaders who attended the Bursa Malaysia 36th Annual Palm and Lauric Oils Price Outlook conference and exhibition on Tuesday.
Currently, the Malaysian palm oil industry’s average yield per hectare stands at a mere 3.7 tonnes per hectare.
In a panel discussion, Harish Harlani, vice-president & global leader of P&G Chemicals cautioned that without strategic intervention, the industry may face a supply shortfall amid the potential surge in palm oil demand.
According to him, the key to addressing this yield improvement issue lies in an emphasis on replanting and sustainable farming practices. He called for plantation firms to adopt a regular replanting schedule, regardless of fluctuations in palm oil prices.
Meanwhile, Tan Sri Lee Oi Hian, executive chairman of Kuala Lumpur Kepong Bhd (KL:KLK) pointed out that there is significant room for yield improvement, particularly for larger plantation land.
While acknowledging the critical role of labour in the sector, he said there has been a growing focus on innovation and automation as part of operational improvements.
In a panel discussion, Harish Harlani, vice-president & global leader of P&G Chemicals cautioned that without strategic intervention, the industry may face a supply shortfall amid the potential surge in palm oil demand.
According to him, the key to addressing this yield improvement issue lies in an emphasis on replanting and sustainable farming practices. He called for plantation firms to adopt a regular replanting schedule, regardless of fluctuations in palm oil prices.
Meanwhile, Tan Sri Lee Oi Hian, executive chairman of Kuala Lumpur Kepong Bhd (KL:KLK) pointed out that there is significant room for yield improvement, particularly for larger plantation land.
While acknowledging the critical role of labour in the sector, he said there has been a growing focus on innovation and automation as part of operational improvements.
Similarly, Dr Shariman Alwani Mohamed Nordin, chief executive officer of SD Guthrie International (SDGI), emphasised the importance of investing in automation and innovation to develop tools and mechanisms that could eventually lead to automated harvesting.
“We are not far off from achieving the holy grail of harvesting automation,” he remarked, noting that with adequate investment in resources, the industry could significantly reduce its reliance on manual labour. The Edge
---------
Oil palm replanting about 50pct short of target, Malaysian minister says
Replanting effort slowed, posing risks to palm oil industry, plantation minister cautions
KUALA LUMPUR (Feb 25): Malaysia’s oil palm replanting remains sluggish, posing a long-term risk to the industry if left unchecked, Minister of Plantation and Commodities Datuk Seri Johari Abdul Ghani cautioned on Tuesday.
Progress has slowed and was significantly short of the recommended annual target amid the government’s push for replanting to boost productivity without expanding land use, Johari said at the Palm and Lauric Oils Price Outlook Conference and Exhibition.
“To secure future yields, this long-term commitment must begin now to ensure the sector’s continued growth and resilience,” Johari said. “This is especially crucial as Malaysia has pledged to prevent further deforestation for palm oil cultivation.”
In 2024, Malaysia replanted 114,000 hectares, or only 2% of the total planted area, versus 2.3% a year earlier. The annual recommendation is for 4%-5% of the total area to be replanted, or about 285,000 hectares each year.
Part of the effort requires that only high-quality planting materials are used in replanting, Johari said.
“Smallholders form a significant yet vulnerable segment of the palm oil industry due to their lack of scale… this makes them susceptible to dishonest practices by certain nurseries,” he flagged.
Johari said that some smallholders have been misled into purchasing inferior-quality seedlings instead of the preferred Dura and Pisifera hybrid essential for higher yields and productivity.
To safeguard the industry and the over 450,000 smallholders in Malaysia, the Malaysian Palm Oil Board will conduct random inspections to ensure nurseries provide genuine, high-quality seeds for replanting. The Edge
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Malaysia eyes palm oil sector's RE integration into national grid with TNB, EC help
KUALA LUMPUR: The government plans to integrate renewable energy (RE) from the palm oil industry into the national grid through collaboration with Tenaga Nasional Bhd (TNB) and the Energy Commission (SC).
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said the initiative supports Malaysia's goal of achieving net-zero carbon emissions by 2050 and reducing reliance on coal-fired power plants.
As the world's second-largest palm oil producer, Malaysia generates substantial palm oil waste, including empty fruit bunches and palm kernel shells, which hold great potential as biomass energy sources, he noted.
Beyond accelerating the country's clean energy transition, Johari said RE also presents significant opportunities for foreign direct investment (FDI), positioning Malaysia as an attractive hub for investors in sustainable and low-carbon energy solutions.
"The palm oil sector holds immense potential, given that Malaysia has 450 palm oil processing mills nationwide.
"Each mill, with a capacity of 60 tonnes per hour, can generate between five and seven megawatts (MW) of electricity.
"If fully utilised, the total energy generated from this industry could exceed 2,000MW, making a significant contribution to the national power supply," he said at a press conference after officiating the 36th Palm & Lauric Oils Price Outlook Conference & Exhibition (POC2025) here today.
Johari added that the initiative demonstrates Malaysia's ability to harness RE without requiring significant government or TNB expenditure.
He noted that a key step is for TNB and EC to identify palm oil mills ready for grid integration.
With the necessary infrastructure in place, surplus energy could be supplied back to the grid, optimising the use of biomass resources.
"For example, if a mill produces 7MW but only uses 3MW, the remaining 4MW can be fed into the national grid.
"However, at present, most palm oil mills do not do this because there is no grid connection, causing the energy to go to waste," he said. New Straits Times
Indonesia wins at WTO, EU must “adjust Palm Oil policy”
Indonesia has secured a victory in an international trade dispute at the World Trade Organization (WTO) after the WTO Dispute Settlement Body (DSB) adopted the final report on case DS593 concerning the European Union’s (EU) policies on palm oil and palm oil-based biofuels.
In the report, which was published on January 20, 2025, the WTO Panel confirmed that the EU's policies were discriminatory against palm oil-based biofuels from Indonesia compared to similar products produced in the EU, such as rapeseed and sunflower oil.
Furthermore, the Panel found that the EU had failed to properly review the data used to classify biofuels under the high indirect land-use change (high ILUC-risk) category and had shortcomings in the formulation and implementation of low ILUC-risk certification criteria under the Renewable Energy Directive (RED) II.
“Referring to the Panel’s recommendations, the EU must adjust its policies to comply with WTO agreements. The predictability and fairness of trade practices in the multilateral trade system have been upheld. Therefore, Indonesia proposed that the DSB adopt the Panel report,” Deputy Indonesian Permanent Representative to the UN, WTO, and other International Organizations, Ambassador Nur Rachman Setyoko, said as quoted in a statement on Tuesday, February 25, 2025.
Throughout the panel process, Indonesia presented various claims and evidence that strengthened its argument that the EU’s measures were inconsistent with WTO rules. Indonesia successfully demonstrated that the EU’s rationale related to climate change, biodiversity, and moral protection lacked a strong basis for the policies imposed on palm oil and palm oil-based biodiesel.
"Indonesia is ready for constructive dialogue with the EU to reach a positive resolution through the implementation process within an agreed timeframe. We will closely monitor the implementation and push for swift compliance,” Setyoko said.
This decision has received support from Russia, Brazil, and St. Vincent and the Grenadines, representing the African, Caribbean, and Pacific group. They expressed concerns about trade restrictions that often target commodities from developing countries under the pretext of environmental protection.
With this decision, Indonesia has successfully defended its trade rights on the international stage and ensured that trade policies operate fairly in accordance with WTO regulations. The Indonesian government will continue to oversee the implementation of this ruling to ensure the EU complies with the dispute settlement outcome. Indonesia Business Post
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Palm oil industry leaders call for sustainable practices in yield improvement
KUALA LUMPUR (Feb 25): As palm oil demand surges, there is a need for yield improvement through sustainable practices to address the potential demand and supply imbalances.
This according to industry leaders who attended the Bursa Malaysia 36th Annual Palm and Lauric Oils Price Outlook conference and exhibition on Tuesday.
Currently, the Malaysian palm oil industry’s average yield per hectare stands at a mere 3.7 tonnes per hectare.
In a panel discussion, Harish Harlani, vice-president & global leader of P&G Chemicals cautioned that without strategic intervention, the industry may face a supply shortfall amid the potential surge in palm oil demand.
According to him, the key to addressing this yield improvement issue lies in an emphasis on replanting and sustainable farming practices. He called for plantation firms to adopt a regular replanting schedule, regardless of fluctuations in palm oil prices.
Meanwhile, Tan Sri Lee Oi Hian, executive chairman of Kuala Lumpur Kepong Bhd (KL:KLK) pointed out that there is significant room for yield improvement, particularly for larger plantation land.
While acknowledging the critical role of labour in the sector, he said there has been a growing focus on innovation and automation as part of operational improvements.
In a panel discussion, Harish Harlani, vice-president & global leader of P&G Chemicals cautioned that without strategic intervention, the industry may face a supply shortfall amid the potential surge in palm oil demand.
According to him, the key to addressing this yield improvement issue lies in an emphasis on replanting and sustainable farming practices. He called for plantation firms to adopt a regular replanting schedule, regardless of fluctuations in palm oil prices.
Meanwhile, Tan Sri Lee Oi Hian, executive chairman of Kuala Lumpur Kepong Bhd (KL:KLK) pointed out that there is significant room for yield improvement, particularly for larger plantation land.
While acknowledging the critical role of labour in the sector, he said there has been a growing focus on innovation and automation as part of operational improvements.
Similarly, Dr Shariman Alwani Mohamed Nordin, chief executive officer of SD Guthrie International (SDGI), emphasised the importance of investing in automation and innovation to develop tools and mechanisms that could eventually lead to automated harvesting.
“We are not far off from achieving the holy grail of harvesting automation,” he remarked, noting that with adequate investment in resources, the industry could significantly reduce its reliance on manual labour. The Edge
---------
Oil palm replanting about 50pct short of target, Malaysian minister says
Replanting effort slowed, posing risks to palm oil industry, plantation minister cautions
KUALA LUMPUR (Feb 25): Malaysia’s oil palm replanting remains sluggish, posing a long-term risk to the industry if left unchecked, Minister of Plantation and Commodities Datuk Seri Johari Abdul Ghani cautioned on Tuesday.
Progress has slowed and was significantly short of the recommended annual target amid the government’s push for replanting to boost productivity without expanding land use, Johari said at the Palm and Lauric Oils Price Outlook Conference and Exhibition.
“To secure future yields, this long-term commitment must begin now to ensure the sector’s continued growth and resilience,” Johari said. “This is especially crucial as Malaysia has pledged to prevent further deforestation for palm oil cultivation.”
In 2024, Malaysia replanted 114,000 hectares, or only 2% of the total planted area, versus 2.3% a year earlier. The annual recommendation is for 4%-5% of the total area to be replanted, or about 285,000 hectares each year.
Part of the effort requires that only high-quality planting materials are used in replanting, Johari said.
“Smallholders form a significant yet vulnerable segment of the palm oil industry due to their lack of scale… this makes them susceptible to dishonest practices by certain nurseries,” he flagged.
Johari said that some smallholders have been misled into purchasing inferior-quality seedlings instead of the preferred Dura and Pisifera hybrid essential for higher yields and productivity.
To safeguard the industry and the over 450,000 smallholders in Malaysia, the Malaysian Palm Oil Board will conduct random inspections to ensure nurseries provide genuine, high-quality seeds for replanting. The Edge
--------
Malaysia eyes palm oil sector's RE integration into national grid with TNB, EC help
KUALA LUMPUR: The government plans to integrate renewable energy (RE) from the palm oil industry into the national grid through collaboration with Tenaga Nasional Bhd (TNB) and the Energy Commission (SC).
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said the initiative supports Malaysia's goal of achieving net-zero carbon emissions by 2050 and reducing reliance on coal-fired power plants.
As the world's second-largest palm oil producer, Malaysia generates substantial palm oil waste, including empty fruit bunches and palm kernel shells, which hold great potential as biomass energy sources, he noted.
Beyond accelerating the country's clean energy transition, Johari said RE also presents significant opportunities for foreign direct investment (FDI), positioning Malaysia as an attractive hub for investors in sustainable and low-carbon energy solutions.
"The palm oil sector holds immense potential, given that Malaysia has 450 palm oil processing mills nationwide.
"Each mill, with a capacity of 60 tonnes per hour, can generate between five and seven megawatts (MW) of electricity.
"If fully utilised, the total energy generated from this industry could exceed 2,000MW, making a significant contribution to the national power supply," he said at a press conference after officiating the 36th Palm & Lauric Oils Price Outlook Conference & Exhibition (POC2025) here today.
Johari added that the initiative demonstrates Malaysia's ability to harness RE without requiring significant government or TNB expenditure.
He noted that a key step is for TNB and EC to identify palm oil mills ready for grid integration.
With the necessary infrastructure in place, surplus energy could be supplied back to the grid, optimising the use of biomass resources.
"For example, if a mill produces 7MW but only uses 3MW, the remaining 4MW can be fed into the national grid.
"However, at present, most palm oil mills do not do this because there is no grid connection, causing the energy to go to waste," he said. New Straits Times
February 25, 2025
INTERVIEW: Policy confusion, SAF demand reshape Asian used cooking oil trade, prices
HIGHLIGHTS
"There is a big shift as US [biofuel] producers have bought close to 1 million mt of animal tallow and greases between December and January, as they can receive producer tax credits for that," Shu Fei said on Feb. 22.
UCO has become a growing staple in US feedstock supplies, making the US the largest buyer ahead of the EU and Singapore since 2023.
However, in January, the US Treasury excluded imported UCO from qualifying for credit generation, aligning with market expectations and the demands of domestic lobby groups.
Shu Fei told Platts that there is still robust demand for UCO from SAF producers in the EU, UK, Singapore, and even Asia itself.
SAF producers are under pressure to meet current and upcoming blending mandates. The EU has a 2% mandate starting this year, while Singapore requires a 1% blend from next year. Japan and the UK have higher targets but with longer deadlines. We are seeing a lot of demand from there, Shu Fei said.
Unlike SAF makers, producers of maritime biofuels are not purchasing UCO, Shu Fei noted, adding that some shipping companies prefer finished products [bio bunkering fuels] and are hesitant about UCO due to quality concerns.
Asian interest pickup SP Global
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Producers braced for glut of palm oil after Indonesia curbs exports
Clampdown on exports of used cooking oil squeezes demand from European energy suppliers
Traders are bracing for a glut of Indonesian palm oil after a clampdown on illicit exports by the world’s largest producer squeezes demand from European energy and transport suppliers.
The commodity is widely used in everything from chocolate bars to shampoo and biofuels but has come under increasing scrutiny from governments concerned its production requires large tracts of rainforest to be destroyed.
Palm oil traded on the Bursa Malaysia Derivatives exchange, the global benchmark, fell from a 30-month high of more than RM5,150 ($1,167) a tonne in December to less than RM4,200 ringgit in January after Indonesia curbed exports on used cooking oil and palm oil waste products.
That has raised fears of a glut of virgin palm oil, as many Indonesian producers had offloaded excess supplies to companies in Europe looking for biofuel.
The ban is having “an implication on price because now what you see all of a sudden, there’s a lot of palm oil available in the country”, said Mohd Haris Mohd Arshad, chief operating officer at SD Guthrie, a Malaysian palm oil producer previously known as Sime Darby Plantation.
“Palm oil was being blended into whatever used cooking oil that they could collect,” he said. “Typically, they would be exporting it to traders, who would then bring it over to Europe.”
Indonesia’s ban has added further strain to a market already adjusting to the fallout from an EU push four years ago to stop companies that consumed vast amounts of biofuel from using palm oil sourced from deforested land.
Companies across industries — from oil companies such as Shell and BP to automotive manufacturers such as Ford and Volkswagen, as well as airlines including Lufthansa — use biofuels to power trucks and planes.
To suppress demand the bloc offered incentives to large consumers to buy used cooking oils rather than virgin palm oil from deforested land.
However, industry insiders said some Asian exporters relabelled virgin palm oil as used cooking oil, or blended used oil with fresh supplies, creating a more opaque market.
A study from campaign group Transport & Environment published last June showed that China and Malaysia were exporting more used cooking oil to Europe than was theoretically available. Malaysia alone was exporting three times more used cooking oil than was collected in the country, according to data cited by the study. FT
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Malaysia Champions Sustainable Palm Oil Chemistry in Crucial EU Trade Talks
Malaysia is taking a proactive stance in ongoing trade negotiations with the European Union, aiming to solidify its position as a leading provider of sustainable palm oil and its derivatives. The discussions are set to intensively address the complexities surrounding palm oil, a crucial raw material for various chemical processes and consumer products.
Palm oil, a versatile vegetable oil with applications spanning food, cosmetics, and biofuels, has faced scrutiny in recent years due to concerns about its environmental impact.1 Malaysia, a major palm oil producer, is actively engaging with the EU to alleviate these concerns and ensure continued market access for its palm oil industry.2
Tengku Datuk Seri Zafrul Abdul Aziz, Malaysia's Minister of Investment, Trade, and Industry, has confirmed that palm oil will be a central theme in the trade negotiations. He emphasized Malaysia's commitment to sustainable palm oil production, highlighting the Malaysian Palm Oil Certification Scheme (MSPO) as a testament to the country's dedication to responsible farming practices.
The MSPO certification ensures that palm oil is produced in accordance with stringent environmental and social standards, addressing concerns related to deforestation, biodiversity loss, and labor rights.3 By promoting MSPO-certified palm oil, Malaysia aims to demonstrate its commitment to sustainable practices and secure its position in the European market.
The chemical industry relies heavily on palm oil and its derivatives for a wide range of applications.4 Palm oil-derived fatty acids and glycerols are crucial components in the production of soaps, detergents, lubricants, and various other industrial chemicals.5 Ensuring a sustainable supply of palm oil is therefore essential for the continued growth and development of the chemical sector.
Malaysia's proactive engagement with the EU on palm oil sustainability reflects a growing trend within the chemical industry to prioritize responsible sourcing and production practices. As consumers become increasingly conscious of the environmental and social impact of the products they use, companies are seeking sustainable alternatives to traditional raw materials.
By championing sustainable palm oil production, Malaysia is not only securing its position in the European market but also contributing to the global shift towards a more sustainable chemical industry. The outcome of the EU trade negotiations will have significant implications for the future of palm oil and its role in the chemical sector.
Malaysia's commitment to sustainable palm oil production aligns with the broader goals of the chemical industry to minimize its environmental footprint and promote social responsibility. As the trade negotiations progress, Malaysia's efforts to address EU concerns and champion sustainable palm oil will be closely watched by stakeholders across the chemical industry. Chem Analyst
--------
Malaysia To Champion Sustainable Palm Oil – Johari
KUALA LUMPUR, Feb 25 (Bernama) -- Malaysia, the world's second-largest palm oil producer, must take the lead in sustainability, taking bold steps to champion sustainable palm oil, especially as the world increasingly focuses on environmental responsibility.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani emphasised the importance of industry-wide compliance with sustainability, particularly among private sector players and smallholders.
“The palm oil industry in our country covers 5.7 million hectares, with two segments, namely the private sector (4.2 million hectares) and smallholders (1.5 million hectares).
“It is a major economic contributor to the nation, but as the world moves towards sustainability, we must take a bold action,” he said in a press conference after officiating the 36th Palm and Lauric Oils Price Outlook Conference and Exhibition 2025 here today.
He also reaffirmed Malaysia's commitment to preventing further deforestation for palm oil cultivation.
“In the past, people applied to clear land for palm oil plantations. Now, we have international regulations, including the European Union Deforestation Regulation (EUDR), that all palm oil producers must comply with.
“This means that if they believe that your palm oil is sourced from recently deforested land, you may not be able to export it,” he said.
Malaysia has set ambitious sustainability targets and is a signatory to multiple international agreements.
These include achieving a net-zero greenhouse gas emissions target by 2050 (12th Malaysia Plan), reducing carbon intensity against the gross domestic product by 45 per cent by 2030 (COP21 Paris), cutting methane emissions by 30 per cent by 2030 (COP26 Glasgow), and maintaining at least 50 per cent forest cover (1992 Rio Earth Summit).
“I always cautioned industry players that our focus should be on increasing yield rather than expanding land use. This is why I stressed in my speech that we must be a country that fully embraces sustainability. Once we get it right, everything else will fall into place,” he added.
-- BERNAMA
INTERVIEW: Policy confusion, SAF demand reshape Asian used cooking oil trade, prices
HIGHLIGHTS
- US feedstock buyers shift to tallow from UCO
- SAF makers drive strong demand due to blend targets
- Protectionism rises in Asia with UCO trade restrictions
"There is a big shift as US [biofuel] producers have bought close to 1 million mt of animal tallow and greases between December and January, as they can receive producer tax credits for that," Shu Fei said on Feb. 22.
UCO has become a growing staple in US feedstock supplies, making the US the largest buyer ahead of the EU and Singapore since 2023.
However, in January, the US Treasury excluded imported UCO from qualifying for credit generation, aligning with market expectations and the demands of domestic lobby groups.
Shu Fei told Platts that there is still robust demand for UCO from SAF producers in the EU, UK, Singapore, and even Asia itself.
SAF producers are under pressure to meet current and upcoming blending mandates. The EU has a 2% mandate starting this year, while Singapore requires a 1% blend from next year. Japan and the UK have higher targets but with longer deadlines. We are seeing a lot of demand from there, Shu Fei said.
Unlike SAF makers, producers of maritime biofuels are not purchasing UCO, Shu Fei noted, adding that some shipping companies prefer finished products [bio bunkering fuels] and are hesitant about UCO due to quality concerns.
Asian interest pickup SP Global
--------
Producers braced for glut of palm oil after Indonesia curbs exports
Clampdown on exports of used cooking oil squeezes demand from European energy suppliers
Traders are bracing for a glut of Indonesian palm oil after a clampdown on illicit exports by the world’s largest producer squeezes demand from European energy and transport suppliers.
The commodity is widely used in everything from chocolate bars to shampoo and biofuels but has come under increasing scrutiny from governments concerned its production requires large tracts of rainforest to be destroyed.
Palm oil traded on the Bursa Malaysia Derivatives exchange, the global benchmark, fell from a 30-month high of more than RM5,150 ($1,167) a tonne in December to less than RM4,200 ringgit in January after Indonesia curbed exports on used cooking oil and palm oil waste products.
That has raised fears of a glut of virgin palm oil, as many Indonesian producers had offloaded excess supplies to companies in Europe looking for biofuel.
The ban is having “an implication on price because now what you see all of a sudden, there’s a lot of palm oil available in the country”, said Mohd Haris Mohd Arshad, chief operating officer at SD Guthrie, a Malaysian palm oil producer previously known as Sime Darby Plantation.
“Palm oil was being blended into whatever used cooking oil that they could collect,” he said. “Typically, they would be exporting it to traders, who would then bring it over to Europe.”
Indonesia’s ban has added further strain to a market already adjusting to the fallout from an EU push four years ago to stop companies that consumed vast amounts of biofuel from using palm oil sourced from deforested land.
Companies across industries — from oil companies such as Shell and BP to automotive manufacturers such as Ford and Volkswagen, as well as airlines including Lufthansa — use biofuels to power trucks and planes.
To suppress demand the bloc offered incentives to large consumers to buy used cooking oils rather than virgin palm oil from deforested land.
However, industry insiders said some Asian exporters relabelled virgin palm oil as used cooking oil, or blended used oil with fresh supplies, creating a more opaque market.
A study from campaign group Transport & Environment published last June showed that China and Malaysia were exporting more used cooking oil to Europe than was theoretically available. Malaysia alone was exporting three times more used cooking oil than was collected in the country, according to data cited by the study. FT
--------
Malaysia Champions Sustainable Palm Oil Chemistry in Crucial EU Trade Talks
- 24-Feb-2025 7:15 PM
- Journalist: Robert Hume
Malaysia is taking a proactive stance in ongoing trade negotiations with the European Union, aiming to solidify its position as a leading provider of sustainable palm oil and its derivatives. The discussions are set to intensively address the complexities surrounding palm oil, a crucial raw material for various chemical processes and consumer products.
Palm oil, a versatile vegetable oil with applications spanning food, cosmetics, and biofuels, has faced scrutiny in recent years due to concerns about its environmental impact.1 Malaysia, a major palm oil producer, is actively engaging with the EU to alleviate these concerns and ensure continued market access for its palm oil industry.2
Tengku Datuk Seri Zafrul Abdul Aziz, Malaysia's Minister of Investment, Trade, and Industry, has confirmed that palm oil will be a central theme in the trade negotiations. He emphasized Malaysia's commitment to sustainable palm oil production, highlighting the Malaysian Palm Oil Certification Scheme (MSPO) as a testament to the country's dedication to responsible farming practices.
The MSPO certification ensures that palm oil is produced in accordance with stringent environmental and social standards, addressing concerns related to deforestation, biodiversity loss, and labor rights.3 By promoting MSPO-certified palm oil, Malaysia aims to demonstrate its commitment to sustainable practices and secure its position in the European market.
The chemical industry relies heavily on palm oil and its derivatives for a wide range of applications.4 Palm oil-derived fatty acids and glycerols are crucial components in the production of soaps, detergents, lubricants, and various other industrial chemicals.5 Ensuring a sustainable supply of palm oil is therefore essential for the continued growth and development of the chemical sector.
Malaysia's proactive engagement with the EU on palm oil sustainability reflects a growing trend within the chemical industry to prioritize responsible sourcing and production practices. As consumers become increasingly conscious of the environmental and social impact of the products they use, companies are seeking sustainable alternatives to traditional raw materials.
By championing sustainable palm oil production, Malaysia is not only securing its position in the European market but also contributing to the global shift towards a more sustainable chemical industry. The outcome of the EU trade negotiations will have significant implications for the future of palm oil and its role in the chemical sector.
Malaysia's commitment to sustainable palm oil production aligns with the broader goals of the chemical industry to minimize its environmental footprint and promote social responsibility. As the trade negotiations progress, Malaysia's efforts to address EU concerns and champion sustainable palm oil will be closely watched by stakeholders across the chemical industry. Chem Analyst
--------
Malaysia To Champion Sustainable Palm Oil – Johari
KUALA LUMPUR, Feb 25 (Bernama) -- Malaysia, the world's second-largest palm oil producer, must take the lead in sustainability, taking bold steps to champion sustainable palm oil, especially as the world increasingly focuses on environmental responsibility.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani emphasised the importance of industry-wide compliance with sustainability, particularly among private sector players and smallholders.
“The palm oil industry in our country covers 5.7 million hectares, with two segments, namely the private sector (4.2 million hectares) and smallholders (1.5 million hectares).
“It is a major economic contributor to the nation, but as the world moves towards sustainability, we must take a bold action,” he said in a press conference after officiating the 36th Palm and Lauric Oils Price Outlook Conference and Exhibition 2025 here today.
He also reaffirmed Malaysia's commitment to preventing further deforestation for palm oil cultivation.
“In the past, people applied to clear land for palm oil plantations. Now, we have international regulations, including the European Union Deforestation Regulation (EUDR), that all palm oil producers must comply with.
“This means that if they believe that your palm oil is sourced from recently deforested land, you may not be able to export it,” he said.
Malaysia has set ambitious sustainability targets and is a signatory to multiple international agreements.
These include achieving a net-zero greenhouse gas emissions target by 2050 (12th Malaysia Plan), reducing carbon intensity against the gross domestic product by 45 per cent by 2030 (COP21 Paris), cutting methane emissions by 30 per cent by 2030 (COP26 Glasgow), and maintaining at least 50 per cent forest cover (1992 Rio Earth Summit).
“I always cautioned industry players that our focus should be on increasing yield rather than expanding land use. This is why I stressed in my speech that we must be a country that fully embraces sustainability. Once we get it right, everything else will fall into place,” he added.
-- BERNAMA
February 24, 2025
Malaysia expects its palm exports to China to be 'resilient' amid price pressure
KUALA LUMPUR, Feb 23 (Reuters) - Malaysian palm oil exports to China will "remain resilient" this year despite their premium over rival oils and Chinese consumers' shifting buying patterns, the deputy commodities minister said on Sunday.
Malaysia's exports of palm oil to China declined in 2024 due to lower soybean prices compared to palm oil and lower consumption of cooking oil, Deputy Minister of Plantation and Commodities Chan Foong Hin said during a press conference after the China-Malaysia oils and fats forum.
“The population is aging and shrinking, as well as consumer behaviour is changing where they are now more health conscious. These have affected the buying patterns in China,” he said.
China is the second largest importer of Malaysian palm oil after India.
Chan said palm kernel oil exports to China grew last year on rising demand.
“Palm oil and palm-based products to China reached a value of 10.57 billion ringgit ($2.39 billion) in which the export volume of palm kernel oil saw an increase of 40%, mainly supplied to China’s oleochemical industry for the production of surfactants,” he said. Reuters
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CIIE: A Gateway to Deepening Economic Ties between Malaysia and the Chinese Market
In the era marked by rapid changes in global trade dynamics, the China International Import Expo (CIIE), the world's first import-themed national-level expo, has served as a vital gateway for international companies seeking to tap into China's vast market. Now in its eighth year, the CIIE has firmly established itself as a premier platform, offering unparalleled opportunities for overseas enterprises to showcase their products, technologies, and services. With the 8th CIIE scheduled for November 2025, it is imperative to recognize its far-reaching impact, particularly for economies like Malaysia.
A Platform of Opportunities for Malaysia
Malaysia has consistently demonstrated a proactive and collaborative stance in fostering trade relations with China, underpinned by mutual trust and shared economic goals. Celebrating the 50th anniversary of diplomatic relations between Malaysia and China, Malaysia participated in the 7th CIIE as the guest country of honor in 2024. This role enhanced its presence by showcasing a diverse range of products and services, highlighting its strengths in electrical and electronics, agriculture, lifestyle, healthcare, and services such as ICT, e-commerce, creative content, business services, and logistics. With the participation of over 60 Malaysian companies, the CIIE served as a dynamic platform for Malaysian businesses to spotlight their innovative products in the Chinese market, such as employing cryogenic nitrogen freezing technology to preserve the freshness of durians, crafting long-lasting commercial ties.
This engagement was not merely symbolic but a calculated strategy to deepen bilateral trade. Ng Yih Pyng, president of the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM), notes that Malaysian businesses are eager to tap into the significant opportunities presented in the CIIE. The CIIE offers Malaysian companies exceptional access to China's vibrant market, known for its growing and varied demands. Palm oil, halal products, and electronics-industries aligned with both Malaysia's economic priorities and China's demand for high-quality imports-were prominently featured. For instance, Malaysia's halal foods are accepted globally. Notably, it is said that Malaysia External Trade Development Corporation (MATRADE) will organize foods exhibitors from MIHAS to participate in the CIIE. Meanwhile, its electrical and electronics (E&E) sector capitalizes on China's tech-driven industrial upgrades. These areas are in line with Malaysia's economic objectives and correspond well with China's market needs, creating an ideal environment for business expansion.
A Catalyst for Global Economic Growth
The CIIE has become a driving force in global commerce and innovation. Since its inception in 2018, the CIIE has seen intended deals over $500 billion and has been the launchpad for more than 3,000 new products, technologies, and services, reflecting its significant impact on fostering global trade and innovation. This remarkable growth highlights the CIIE's role in fostering global economic integration and cross-border collaboration. According to the Report on the Media Coverage and Influence of the seventh China International Import Expo, the 7th CIIE attracted 3,496 companies from 129 countries and regions to participate in its Enterprise & Business Exhibition, showcasing their latest products, technologies, and visions for the future. It saw intended deals worth $80.01 billion-an increase of 2 percent compared to the previous year. Notably, 186 enterprises and institutions have attended all seven expos, underscoring CIIE's enduring value as a platform for launching groundbreaking products and technologies. The 7th CIIE also welcomed 1,585 companies from 104 countries participating in the Belt and Road Initiative, 1,106 companies from 13 countries involved in the Regional Comprehensive Economic Partnership, and 132 exhibitors from 35 least developed countries. As the CIIE expands in scale and influence, it has facilitated economic engagement that transcends national borders, attracting an increasing number of companies and creating substantial opportunities for global trade.
Currently, preparations for the 8th CIIE are in full swing. For enterprises in Malaysia, engaging in the 8th CIIE will be an unparalleled opportunity to showcase their capabilities on a world stage and tap into one of the fastest-growing import markets. These endeavors are bound to drive the future course of international trade and collaboration, paving the way for new horizons of economic development and cross-border partnerships. The Edge
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Malaysia to address palm oil concerns in EU trade negotiations
THE Malaysia-European Union (EU) Trade Agreement (MTA) discussions have resumed, with palm oil expected to be a key issue in the talks, Investment, Trade and Industry (MITI) Minister Tengku Datuk Seri Zafrul Abdul Aziz confirms.
He acknowledged that the commodity remains a point of contention but assured that Malaysia has implemented sustainability standards to meet international requirements.
“We recognise that sustainability concerns regarding palm oil will be a discussion point in the negotiations. However, Malaysia has standards in place to comply with sustainability requirements, and we will ensure that these are recognised,” he said at MITI’s 2024 report card and 2025 outlook briefing with the press today.
Tengku Zafrul also emphasised that Malaysia is pushing for a fair and balanced trade agreement that does not unfairly disadvantage the country’s palm oil industry.
He stressed the importance of ensuring that any trade deal benefits Malaysia and the EU while recognising Malaysia’s commitments to sustainable palm oil production.
With discussions progressing, Tengku Zafrul expressed confidence that Malaysia and the EU could find common ground on the issue, paving the way for a mutually beneficial trade agreement.
The Malaysian Reserve
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Palm oil no longer sticking point in Malaysia-EU free trade agreement talks, says Zafrul
KUALA LUMPUR (Feb 24): Malaysia has resolved the issue of palm oil in its negotiations for a free trade agreement (FTA) with the European Union (EU), Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz said on Monday.
"I am happy to report that palm oil is no longer an issue,” Zafrul told reporters after the presentation of his ministry’s report card for 2024. “We have addressed the concerns, and I think the mitigation is the fact that we have standards that comply [with international standards].”
While the palm oil dispute has been resolved, Zafrul highlighted the need to address emerging areas, such as digital trade and green technology, to ensure a comprehensive and mutually beneficial agreement.
"I am targeting that by next year, we should complete the EU FTA" negotiations, he added.
Malaysia’s discussions with the EU, which commenced in 2010, have been put under ice for a decade, mainly due to disagreements over palm oil-related policies, including the bloc’s procurement practices and sustainability clauses.
Prime Minister Datuk Seri Anwar Ibrahim, during his visit to Brussels last month, emphasised Malaysia's improved position in the negotiations, citing political stability and economic resilience.
Previous talks stalled due to "unreasonable conditions" imposed by the EU, though Malaysia's proactive measures, including the preservation of about 55% of its forested areas, will help to push the talks forward, he said.
In 2023, the EU was Malaysia’s fourth largest trading partner, with trade reaching RM206.79 billion. As of 2023, investments from the EU into Malaysia generated over 153,000 jobs through 1,323 projects valued at RM227.9 billion. The Edge
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Studies show Orangutans Can Coexist With Palm Plantations
SANUR, Bali – Two studies recently conducted on the relations of oil palm plantations and orangutan have concluded that orangutans and palm plantations can coexist under a sustainable and mutually beneficial management system.
The studies debunked the claim made by a number of green NGOs that oil palm plantations disrupted the life of orangutans. On the other hand, orangutans were considered to be able to disturb oil palm cultivation.
Mark Ancrenaz, a scientific researcher of the Sabah Wildlife Department, and Irfan Bakhtiar, Director of Climate and Market Transformation Program at the independent conservation organization World Wildlife Fund (WWF) Indonesia, revealed the coexistence issue of orangutans and oil palm plantations during the International Conference on Oil Palm and Environment (ICOPE) 2025 at the Bali Beach Convention, Bali, Wednesday (13/02/2025).
Ancrenaz said that based on their study, they saw the behavior change of orangutans which can adapt to the condition in oil palm plantations. “When I first worked in Borneo 25 years ago, scientists believed that orangutans could only survive in primary forests,” he said.
However, over time, that understanding began to change. Recent research shows that orangutans can adapt and survive in secondary forests, even in oil palm plantations. “We want to know why they behave that way,” Ancrenaz said.
According to him, the aim of orangutans moving to oil palm plantations is to look for food such as young fronds. On the other hand, in his research he refuted the myth that orangutans are destroyers of oil palm plantations, meaning that the damage caused by their presence is often exaggerated by palm growers. “The disturbance caused by orangutans is actually very minimal,” he added. GAPKI
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Raedial Farms Limited Partners with a Leading Malaysian firm for the 100,000-hectare oil palm expansion
A Game-Changing Partnership for Sustainable Growth
Nigeria’s oil palm industry is on the brink of a major transformation, and Raedial Farms Limited is leading the charge. In a groundbreaking move, the company has partnered with a top Malaysian firm to accelerate the development of its 100,000-hectare oil palm plantation – one of the largest in Africa.
This partnership is more than just business; it is a commitment to sustainability, innovation, and global best practices. By aligning with Environmental, Social, and Governance standards, the Roundtable on Sustainable Palm Oil, and Malaysian Sustainable Palm Oil certification, Raedial Farms is setting a new benchmark for responsible palm oil production in Nigeria.
“Sustainability is at the Heart of Our Growth” – Group Managing Director, Raedial Farms
At the core of Raedial Farms’ expansion is its unwavering focus on sustainability and ethical agribusiness. Mr. Uwadiale Agenmonmen, the Group Managing Director, highlights the company’s vision: BusinessdayNG
Malaysia expects its palm exports to China to be 'resilient' amid price pressure
KUALA LUMPUR, Feb 23 (Reuters) - Malaysian palm oil exports to China will "remain resilient" this year despite their premium over rival oils and Chinese consumers' shifting buying patterns, the deputy commodities minister said on Sunday.
Malaysia's exports of palm oil to China declined in 2024 due to lower soybean prices compared to palm oil and lower consumption of cooking oil, Deputy Minister of Plantation and Commodities Chan Foong Hin said during a press conference after the China-Malaysia oils and fats forum.
“The population is aging and shrinking, as well as consumer behaviour is changing where they are now more health conscious. These have affected the buying patterns in China,” he said.
China is the second largest importer of Malaysian palm oil after India.
Chan said palm kernel oil exports to China grew last year on rising demand.
“Palm oil and palm-based products to China reached a value of 10.57 billion ringgit ($2.39 billion) in which the export volume of palm kernel oil saw an increase of 40%, mainly supplied to China’s oleochemical industry for the production of surfactants,” he said. Reuters
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CIIE: A Gateway to Deepening Economic Ties between Malaysia and the Chinese Market
In the era marked by rapid changes in global trade dynamics, the China International Import Expo (CIIE), the world's first import-themed national-level expo, has served as a vital gateway for international companies seeking to tap into China's vast market. Now in its eighth year, the CIIE has firmly established itself as a premier platform, offering unparalleled opportunities for overseas enterprises to showcase their products, technologies, and services. With the 8th CIIE scheduled for November 2025, it is imperative to recognize its far-reaching impact, particularly for economies like Malaysia.
A Platform of Opportunities for Malaysia
Malaysia has consistently demonstrated a proactive and collaborative stance in fostering trade relations with China, underpinned by mutual trust and shared economic goals. Celebrating the 50th anniversary of diplomatic relations between Malaysia and China, Malaysia participated in the 7th CIIE as the guest country of honor in 2024. This role enhanced its presence by showcasing a diverse range of products and services, highlighting its strengths in electrical and electronics, agriculture, lifestyle, healthcare, and services such as ICT, e-commerce, creative content, business services, and logistics. With the participation of over 60 Malaysian companies, the CIIE served as a dynamic platform for Malaysian businesses to spotlight their innovative products in the Chinese market, such as employing cryogenic nitrogen freezing technology to preserve the freshness of durians, crafting long-lasting commercial ties.
This engagement was not merely symbolic but a calculated strategy to deepen bilateral trade. Ng Yih Pyng, president of the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM), notes that Malaysian businesses are eager to tap into the significant opportunities presented in the CIIE. The CIIE offers Malaysian companies exceptional access to China's vibrant market, known for its growing and varied demands. Palm oil, halal products, and electronics-industries aligned with both Malaysia's economic priorities and China's demand for high-quality imports-were prominently featured. For instance, Malaysia's halal foods are accepted globally. Notably, it is said that Malaysia External Trade Development Corporation (MATRADE) will organize foods exhibitors from MIHAS to participate in the CIIE. Meanwhile, its electrical and electronics (E&E) sector capitalizes on China's tech-driven industrial upgrades. These areas are in line with Malaysia's economic objectives and correspond well with China's market needs, creating an ideal environment for business expansion.
A Catalyst for Global Economic Growth
The CIIE has become a driving force in global commerce and innovation. Since its inception in 2018, the CIIE has seen intended deals over $500 billion and has been the launchpad for more than 3,000 new products, technologies, and services, reflecting its significant impact on fostering global trade and innovation. This remarkable growth highlights the CIIE's role in fostering global economic integration and cross-border collaboration. According to the Report on the Media Coverage and Influence of the seventh China International Import Expo, the 7th CIIE attracted 3,496 companies from 129 countries and regions to participate in its Enterprise & Business Exhibition, showcasing their latest products, technologies, and visions for the future. It saw intended deals worth $80.01 billion-an increase of 2 percent compared to the previous year. Notably, 186 enterprises and institutions have attended all seven expos, underscoring CIIE's enduring value as a platform for launching groundbreaking products and technologies. The 7th CIIE also welcomed 1,585 companies from 104 countries participating in the Belt and Road Initiative, 1,106 companies from 13 countries involved in the Regional Comprehensive Economic Partnership, and 132 exhibitors from 35 least developed countries. As the CIIE expands in scale and influence, it has facilitated economic engagement that transcends national borders, attracting an increasing number of companies and creating substantial opportunities for global trade.
Currently, preparations for the 8th CIIE are in full swing. For enterprises in Malaysia, engaging in the 8th CIIE will be an unparalleled opportunity to showcase their capabilities on a world stage and tap into one of the fastest-growing import markets. These endeavors are bound to drive the future course of international trade and collaboration, paving the way for new horizons of economic development and cross-border partnerships. The Edge
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Malaysia to address palm oil concerns in EU trade negotiations
THE Malaysia-European Union (EU) Trade Agreement (MTA) discussions have resumed, with palm oil expected to be a key issue in the talks, Investment, Trade and Industry (MITI) Minister Tengku Datuk Seri Zafrul Abdul Aziz confirms.
He acknowledged that the commodity remains a point of contention but assured that Malaysia has implemented sustainability standards to meet international requirements.
“We recognise that sustainability concerns regarding palm oil will be a discussion point in the negotiations. However, Malaysia has standards in place to comply with sustainability requirements, and we will ensure that these are recognised,” he said at MITI’s 2024 report card and 2025 outlook briefing with the press today.
Tengku Zafrul also emphasised that Malaysia is pushing for a fair and balanced trade agreement that does not unfairly disadvantage the country’s palm oil industry.
He stressed the importance of ensuring that any trade deal benefits Malaysia and the EU while recognising Malaysia’s commitments to sustainable palm oil production.
With discussions progressing, Tengku Zafrul expressed confidence that Malaysia and the EU could find common ground on the issue, paving the way for a mutually beneficial trade agreement.
The Malaysian Reserve
--------
Palm oil no longer sticking point in Malaysia-EU free trade agreement talks, says Zafrul
KUALA LUMPUR (Feb 24): Malaysia has resolved the issue of palm oil in its negotiations for a free trade agreement (FTA) with the European Union (EU), Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz said on Monday.
"I am happy to report that palm oil is no longer an issue,” Zafrul told reporters after the presentation of his ministry’s report card for 2024. “We have addressed the concerns, and I think the mitigation is the fact that we have standards that comply [with international standards].”
While the palm oil dispute has been resolved, Zafrul highlighted the need to address emerging areas, such as digital trade and green technology, to ensure a comprehensive and mutually beneficial agreement.
"I am targeting that by next year, we should complete the EU FTA" negotiations, he added.
Malaysia’s discussions with the EU, which commenced in 2010, have been put under ice for a decade, mainly due to disagreements over palm oil-related policies, including the bloc’s procurement practices and sustainability clauses.
Prime Minister Datuk Seri Anwar Ibrahim, during his visit to Brussels last month, emphasised Malaysia's improved position in the negotiations, citing political stability and economic resilience.
Previous talks stalled due to "unreasonable conditions" imposed by the EU, though Malaysia's proactive measures, including the preservation of about 55% of its forested areas, will help to push the talks forward, he said.
In 2023, the EU was Malaysia’s fourth largest trading partner, with trade reaching RM206.79 billion. As of 2023, investments from the EU into Malaysia generated over 153,000 jobs through 1,323 projects valued at RM227.9 billion. The Edge
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Studies show Orangutans Can Coexist With Palm Plantations
SANUR, Bali – Two studies recently conducted on the relations of oil palm plantations and orangutan have concluded that orangutans and palm plantations can coexist under a sustainable and mutually beneficial management system.
The studies debunked the claim made by a number of green NGOs that oil palm plantations disrupted the life of orangutans. On the other hand, orangutans were considered to be able to disturb oil palm cultivation.
Mark Ancrenaz, a scientific researcher of the Sabah Wildlife Department, and Irfan Bakhtiar, Director of Climate and Market Transformation Program at the independent conservation organization World Wildlife Fund (WWF) Indonesia, revealed the coexistence issue of orangutans and oil palm plantations during the International Conference on Oil Palm and Environment (ICOPE) 2025 at the Bali Beach Convention, Bali, Wednesday (13/02/2025).
Ancrenaz said that based on their study, they saw the behavior change of orangutans which can adapt to the condition in oil palm plantations. “When I first worked in Borneo 25 years ago, scientists believed that orangutans could only survive in primary forests,” he said.
However, over time, that understanding began to change. Recent research shows that orangutans can adapt and survive in secondary forests, even in oil palm plantations. “We want to know why they behave that way,” Ancrenaz said.
According to him, the aim of orangutans moving to oil palm plantations is to look for food such as young fronds. On the other hand, in his research he refuted the myth that orangutans are destroyers of oil palm plantations, meaning that the damage caused by their presence is often exaggerated by palm growers. “The disturbance caused by orangutans is actually very minimal,” he added. GAPKI
--------
Raedial Farms Limited Partners with a Leading Malaysian firm for the 100,000-hectare oil palm expansion
A Game-Changing Partnership for Sustainable Growth
Nigeria’s oil palm industry is on the brink of a major transformation, and Raedial Farms Limited is leading the charge. In a groundbreaking move, the company has partnered with a top Malaysian firm to accelerate the development of its 100,000-hectare oil palm plantation – one of the largest in Africa.
This partnership is more than just business; it is a commitment to sustainability, innovation, and global best practices. By aligning with Environmental, Social, and Governance standards, the Roundtable on Sustainable Palm Oil, and Malaysian Sustainable Palm Oil certification, Raedial Farms is setting a new benchmark for responsible palm oil production in Nigeria.
“Sustainability is at the Heart of Our Growth” – Group Managing Director, Raedial Farms
At the core of Raedial Farms’ expansion is its unwavering focus on sustainability and ethical agribusiness. Mr. Uwadiale Agenmonmen, the Group Managing Director, highlights the company’s vision: BusinessdayNG
February 23, 2025
Indonesia boosts energy transition, green economy via AZEC Partnership
Jakarta (ANTARA) - Indonesia is advancing its energy transition and green economy through collaboration with the Asia Zero Emission Community (AZEC).
The Coordinating Minister for Economic Affairs Airlangga Hartarto stated that the AZEC initiative was a key highlight of the meeting between President Prabowo Subianto and Japanese Prime Minister Shigeru Ishiba last January.
He conveyed this during a meeting with the Chairman of the Japan Bank for International Cooperation (JBIC), Tadashi Maeda, and AZEC Ambassador for Promotion, Takio Yamada.
"We must swiftly realize the commitment of both heads of state regarding the development and implementation of flagship projects within the AZEC framework, particularly the Muara Laboh Geothermal Power Plant (PLTP)," Hartarto stated in a statement on Sunday.
During the meeting, JBIC Chairman Tadashi Maeda provided updates on JBIC's ongoing cooperation in Indonesia, including energy transition efforts with the state-run electricity company PLN, particularly in the development of the Java-Sumatra transmission network.
Maeda also outlined Japan's new renewable energy strategic plan, which aims to meet renewable energy needs through 2040.
"Japan seeks Indonesia's support in implementing this strategic plan and in fulfilling the renewable energy needs of both countries," he remarked.
Meanwhile, Ambassador Yamada praised the Indonesian government for its strong support of AZEC's efforts to achieve net-zero emissions.
Hartarto also proposed additional collaborations, including the ongoing development of a solar power plant in Riau, the ASEAN Power Grid transmission project, and the utilization of palm oil as aviation fuel.
The meeting further discussed the Expert Group Meeting report, which categorizes AZEC development projects in Indonesia into three tiers
Category I (Commercial-Ready Projects): Includes the Muara Laboh Geothermal Power Plant in West Sumatra, the Legok Nangka Waste-to-Energy (PLTSa) project, and the Sustainable Aviation Fuel (SAF) initiative.
Category II (Potential Commercial Projects Under Feasibility Study): Includes the Kayan Hydroelectric Power Plant, peatland management initiatives, and the Java-Sumatra transmission network.
Category III (Pilot Projects and Initiatives): includes new technologies for geothermal power, green ammonia production, hydrogen development for transportation, and development of Biofuel/Bioavtur production.
"We will strive to upgrade projects in Categories III and II to Category I to ensure immediate economic benefits," Hartarto remarked. Antara News
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Indonesia's Ministry of Forestry rejects applications to legalise illegal plantations in push for transparency
317,253 Hectares of Oil Palm Plantation Permits in Forest Areas Rejected by Ministry of Forestry
THE Forestry Ministry has rejected an application to settle 317,253 hectares of unlicensed palm oil plantations located in forest areas. Sawit Watch and civil society organizations urge enforcement of forestry criminal law processes.
As is known, the Ministry of Forestry has issued Decree of the Minister of Forestry No. 36 of 2025, as a follow-up to Presidential Regulation No. 5 of 2025 concerning Forest Area Regulation. In essence, the Decree of the Minister of Forestry 36/2025 contains a list of 436 palm oil plantation companies that have plantations without permits in forest areas, where 790,474 hectares are stated to be in the process of being resolved and 317,253 hectares have been declared rejected for their settlement applications, because they do not meet the criteria of Article 110A of the Job Creation Law (UUCK).
Ironically, the companies on the list have been considered to have complied with the principles and criteria of sustainable palm oil based on ISPO (Indonesian Sustainable Palm Oil) and RSPO (Roundtable Sustainable Palm Oil) standards. Among them are Sinarmas Agro, Musim Mas, Djarum, Wilmar, Duta Palma, Eagle High Plantations, Goodhope, ANJ, KLK, PTPN, First Resources, Best Agro, Austindo, Salim Ivomas, Genting, Astra Agro, Triputra, Cargill, KPN Plantations, Lonsum, Sampoerna Agro, Torganda, Citra Borneo Indah, Permata Hijau, Sinar Alam Plantations, DSN, and Bumitama.
Highlighting the Minister of Forestry Decree 36/2025, Achmad Surambo, Director of Sawit Watch, in his release on Monday (17/2) said that the policy is part of the transparency process carried out by the government regarding the resolution of palm oil in forest areas.
"We hope that the transparency of the process does not just stop here but until the final stage of completion. On the other hand, this policy does not clearly state the next process that will be taken, especially for rejected palm oil plantations. Will they be taken over and managed by BUMN or will they be reforested," he said.
If left unsupervised, it is feared that it will be exploited or become a "meal" for certain irresponsible groups. "We urge immediate law enforcement. Law enforcement officers and the Forest Area Order Task Force can coordinate with each other and follow up by carrying out forestry criminal law processes against the plantation company," said Surambo.
The list of hundreds of companies also raises questions about the commitment and implementation at the field level in promoting sustainable palm oil principles in the management of palm oil company plantations.
The results of the Sawit Watch investigation and recapitulation of 15 Decrees of the Minister of Environment and Forestry, in Riau Province there are 11 large RSPO member groups, with a total area of 59,817.70 hectares. Meanwhile, in Central Kalimantan Province, there are 10 large palm oil groups with an area of 134,319.63 hectares. Media Indonesia
Indonesia boosts energy transition, green economy via AZEC Partnership
Jakarta (ANTARA) - Indonesia is advancing its energy transition and green economy through collaboration with the Asia Zero Emission Community (AZEC).
The Coordinating Minister for Economic Affairs Airlangga Hartarto stated that the AZEC initiative was a key highlight of the meeting between President Prabowo Subianto and Japanese Prime Minister Shigeru Ishiba last January.
He conveyed this during a meeting with the Chairman of the Japan Bank for International Cooperation (JBIC), Tadashi Maeda, and AZEC Ambassador for Promotion, Takio Yamada.
"We must swiftly realize the commitment of both heads of state regarding the development and implementation of flagship projects within the AZEC framework, particularly the Muara Laboh Geothermal Power Plant (PLTP)," Hartarto stated in a statement on Sunday.
During the meeting, JBIC Chairman Tadashi Maeda provided updates on JBIC's ongoing cooperation in Indonesia, including energy transition efforts with the state-run electricity company PLN, particularly in the development of the Java-Sumatra transmission network.
Maeda also outlined Japan's new renewable energy strategic plan, which aims to meet renewable energy needs through 2040.
"Japan seeks Indonesia's support in implementing this strategic plan and in fulfilling the renewable energy needs of both countries," he remarked.
Meanwhile, Ambassador Yamada praised the Indonesian government for its strong support of AZEC's efforts to achieve net-zero emissions.
Hartarto also proposed additional collaborations, including the ongoing development of a solar power plant in Riau, the ASEAN Power Grid transmission project, and the utilization of palm oil as aviation fuel.
The meeting further discussed the Expert Group Meeting report, which categorizes AZEC development projects in Indonesia into three tiers
Category I (Commercial-Ready Projects): Includes the Muara Laboh Geothermal Power Plant in West Sumatra, the Legok Nangka Waste-to-Energy (PLTSa) project, and the Sustainable Aviation Fuel (SAF) initiative.
Category II (Potential Commercial Projects Under Feasibility Study): Includes the Kayan Hydroelectric Power Plant, peatland management initiatives, and the Java-Sumatra transmission network.
Category III (Pilot Projects and Initiatives): includes new technologies for geothermal power, green ammonia production, hydrogen development for transportation, and development of Biofuel/Bioavtur production.
"We will strive to upgrade projects in Categories III and II to Category I to ensure immediate economic benefits," Hartarto remarked. Antara News
--------
Indonesia's Ministry of Forestry rejects applications to legalise illegal plantations in push for transparency
317,253 Hectares of Oil Palm Plantation Permits in Forest Areas Rejected by Ministry of Forestry
THE Forestry Ministry has rejected an application to settle 317,253 hectares of unlicensed palm oil plantations located in forest areas. Sawit Watch and civil society organizations urge enforcement of forestry criminal law processes.
As is known, the Ministry of Forestry has issued Decree of the Minister of Forestry No. 36 of 2025, as a follow-up to Presidential Regulation No. 5 of 2025 concerning Forest Area Regulation. In essence, the Decree of the Minister of Forestry 36/2025 contains a list of 436 palm oil plantation companies that have plantations without permits in forest areas, where 790,474 hectares are stated to be in the process of being resolved and 317,253 hectares have been declared rejected for their settlement applications, because they do not meet the criteria of Article 110A of the Job Creation Law (UUCK).
Ironically, the companies on the list have been considered to have complied with the principles and criteria of sustainable palm oil based on ISPO (Indonesian Sustainable Palm Oil) and RSPO (Roundtable Sustainable Palm Oil) standards. Among them are Sinarmas Agro, Musim Mas, Djarum, Wilmar, Duta Palma, Eagle High Plantations, Goodhope, ANJ, KLK, PTPN, First Resources, Best Agro, Austindo, Salim Ivomas, Genting, Astra Agro, Triputra, Cargill, KPN Plantations, Lonsum, Sampoerna Agro, Torganda, Citra Borneo Indah, Permata Hijau, Sinar Alam Plantations, DSN, and Bumitama.
Highlighting the Minister of Forestry Decree 36/2025, Achmad Surambo, Director of Sawit Watch, in his release on Monday (17/2) said that the policy is part of the transparency process carried out by the government regarding the resolution of palm oil in forest areas.
"We hope that the transparency of the process does not just stop here but until the final stage of completion. On the other hand, this policy does not clearly state the next process that will be taken, especially for rejected palm oil plantations. Will they be taken over and managed by BUMN or will they be reforested," he said.
If left unsupervised, it is feared that it will be exploited or become a "meal" for certain irresponsible groups. "We urge immediate law enforcement. Law enforcement officers and the Forest Area Order Task Force can coordinate with each other and follow up by carrying out forestry criminal law processes against the plantation company," said Surambo.
The list of hundreds of companies also raises questions about the commitment and implementation at the field level in promoting sustainable palm oil principles in the management of palm oil company plantations.
The results of the Sawit Watch investigation and recapitulation of 15 Decrees of the Minister of Environment and Forestry, in Riau Province there are 11 large RSPO member groups, with a total area of 59,817.70 hectares. Meanwhile, in Central Kalimantan Province, there are 10 large palm oil groups with an area of 134,319.63 hectares. Media Indonesia
February 22, 2025
Malaysian Palm Oil at the Heart of Global Trade
Malaysian Palm Oil at the Heart of Global Trade
Indonesia: Experts slam, warn of President Prabowo’s defensive remarks on palm oil expansion
Experts and activists criticized President Prabowo Subianto’s recent remarks, which defended Indonesia’s palm oil industry and support for its expansion.
President Prabowo’s statements came across as an attempt to defend the Indonesian palm oil industry from criticisms over its environmental impacts, particularly from foreign countries such as in the European Union (EU).
“And I think in the future, we also need to plant more palm oil. We don’t need to be afraid of endangering − what’s it called − deforestation, right?” the president said on December 30, 2024.
He added that oil palms are trees and have leaves, in which they produce oxygen, absorbs carbon dioxide. So he asked why Indonesia was accused of deforestation, and further defended that these things do not make any sense.
Environmental activists and experts criticized this narrative as it downplays the scientific evidence about the role of oil palm plantations in driving deforestation, biodiversity loss and carbon emissions.
“Saying that palm oil is a forest crop is so bad because it seems like we do not understand the difference between forests and plantations,” Herry Purnomo, senior scientist at the Center for International Forestry Research (CIFOR), and professor at the Bogor Institute of Agriculture (IPB), said as quoted by Mongabay on Friday, January 3, 2025.
This oversimplification of the issue could fuel greater environmental degradation and land conflicts, further undermining Indonesia’s global climate commitments.
“If we defend palm oil blindly without a scientific basis, other countries will blindly accuse us as well. They will perceive all palm oil (produced in Indonesia) to be coming from deforestation,” he said.
The EU’s new antideforestation regulation (EUDR) comes into effect at the end of 2025, with palm oil as one of the seven commodities that will be affected. It mandates strict traceability and sustainability for imports of these commodities into the EU market.
By downplaying environmental criticism, Indonesia could face backlash from markets like the EU that demand the products to be sustainable.
Forests replaced by oil palm plantations are not as effective in storing carbon. Clearing forest to establish palm plantations releases more CO2 than can be sequestered by growing oil palms on the same plot, studies demonstrated.
While a new oil palm plantation may grow faster and sequester carbon at a higher annual rate than a naturally regenerating forest that stores 300 tons of CO2 per hectare (ha) or 10 times more than oil palm plantations, it will still end up storing less carbon than leaving the original forest.
Carbon losses are even great on peatlands that store vast amounts of carbon in their soil, which is drained to prepare for planting.
Essentially, President Prabowo is downplaying the ecological damage by oil palm plantations, including deforestation, biodiversity loss and carbon emissions from land clearing and peatland destruction.
Expansion in oil palm plantations has been a major driver of deforestation in Indonesia over the past 20 years, accounting for one-third of Indonesia’s loss of old-growth forest, an area nearly 3 million ha, or half the size of Belgium.
CIFOR demonstrates that oil palm plantations were the largest contributor to deforestation in Indonesia between 2021 and 2022, resulting in annual greenhouse emissions of 200 million metric tons (mt), which coincide with the rapid expansion of oil palm plantations in Indonesia to meet the growing global demand.
It is also linked to biodiversity loss as oil palm plantations support far fewer species than do forests and often also fewer than other tree crops.
According to the International Union for Conservation of Nature (IUCN), a global wildlife conservation authority, oil palm cultivation already threatens at least 193 species listed as critically endangered, or vulnerable.
Meanwhile, there are still 2.4 million ha of intact forest that could be lost if palm oil expansion in the country is left unchecked. It is also likely to push threatened species closer to extinction. With 39 percent of amphibians, 54 percent of mammals, and 64 percent of birds are set to be affected by future expansion of the industry, as reported by IUCN.
It also raises concern to human safety, by increasing the risk of natural disasters. The clearing of forest for oil palm plantations increases flooding risk and water contamination for downstream communities as crops when it is young, is nowhere as effective at retaining water as the forest it replaced.
Recent research by Indonesian environmental and human rights advocacy group Satya Bumi and environmental NGOs − Sawit Watch and Madani Berkelanjutan − estimated that the maximum extent of oil palm plantations that Indonesia can host without doing further catastrophic damage to the environment is 18.15 million ha.
“If the development of the palm oil industry is left unchecked, there will be massive ecological and economic loss,” Andi Muttaqien, executive director of Satya Bumi, said on Friday, January 3, 2025. UKRagroconsult
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India-Urgent need to move away from trans fats to healthier edible oils
Chandigarh: There is an urgent need for India to transition from trans fats to healthier edible oils, according to a study released by PGI's department of community medicine and school of public health. The report, titled ‘Roadmap for Replacing Trans-Fats with Healthy Edible Oil in India,' will be released on Saturday at a national stakeholder meeting aimed at strengthening trans-fat elimination efforts.
The study highlights the alarming prevalence of non-communicable diseases (NCDs) in India, with cardiovascular diseases (CVDs) accounting for a significant portion of deaths. High trans-fat intake, primarily from partially hydrogenated oils like vanaspati and processed foods, is a major contributing factor. While the Food Safety and Standards Authority of India (FSSAI) has set limits on trans fats, the report emphasises that complete elimination remains an "unfulfilled agenda".
The study, which involved stakeholder interviews and secondary data analysis, focused on understanding fat consumption patterns, existing policies, and strategies to promote healthier oil production. It also explored ways to reduce reliance on imported palm oil, which is high in saturated fats, and encourage domestic production of healthier alternatives.
"Transitioning from trans fats to healthier oils is critical to improving public health in India," stated Prof JS Thakur, principal investigator of the project. "This requires a multi-faceted approach involving regulatory reforms, increased domestic production, public awareness, and industry collaboration."
The stakeholder meeting at PGI will bring together national experts from institutions like the National Institute of Nutrition, FSSAI, and the ministry of health, as well as international representatives from WHO. The event will launch the ‘Healthy Oil Consortium' and include discussions on actionable recommendations to eliminate trans fats.
Health secretary-cum-commissioner, food safety, Chandigarh administration, Ajay Chagti, Dr Yutaro Setoya from WHO, and Dr Abhinav Trikha, mission director, National Health Mission and commissioner food safety, Punjab, will be present. Times of India
February 21, 2025
Exclusive: Indian refiners cancel palm oil orders due to price surge
Summary
Refiners in the world's largest importer of palm oil cancelled the quantity over the last four days, including 30,000 tons on Friday, after Malaysian palm oil futures rose more than 11% over four weeks.
The Indian cancellations could limit the rally in Malaysian palm oil prices, although they could also support soyoil prices as some refiners shift to soyoil.
The trade sources spoke on condition of anonymity because they were not authorised to speak to the press.
One Indian buyer, who operates a refinery on the east coast and cancelled palm oil shipments for March delivery, said the combination of negative refining margins in India and high overseas prices meant it made sense to lock in profits by selling palm oil back to suppliers, rather than importing it. Reuters
--------
Palm oil prices continue to rise as demand remains strong
Soaring palm oil prices are expected to be supportive for canola values because of its dominant role in the veg oil complex
SASKATOON — Palm oil futures have been on a rocket ride since the summer of 2024.
Tight supplies have supported prices, making palm oil less competitive with its main rival, soybean oil, according to the Council of Palm Oil Producing Countries (CPOPC).
Palm oil traded as high as $1,250 per tonne at the end of 2024, but demand remained resilient due to the lack of alternative vegetable oils, the organization said in its Annual Report Market & Outlook 2025.
That strong demand supported prices during the second half of 2024 and so far in 2025. Futures are up 31 per cent since late-August.
CPCOC is optimistic palm oil will continue trading at $1,000 to $1,250 per tonne during the first quarter of 2025 due to increased biodiesel use in Indonesia, lower stocks in producing countries and seasonally low production in the coming months.
“However, palm oil prices are expected to be traded lower in the second half of 2025 due to the seasonally high yielding production cycle and harvesting season for rapeseed and sunflower seed,” it said.
Glacier MarketsFarm analyst Mike Jubinville said soaring palm oil prices are supportive for canola values.
“Palm oil is the dominant vegetable oil,” he said.
“The influence is there, (although) we don’t necessarily compete head to head in most markets.” Producer
--------
Palm oil: India key to future prices
BR Research
Cooking oil prices in Pakistan’s retail market have hit a 15-month high. The surge comes on the back of rising palm oil import costs, which have pushed domestic prices higher. January 2025 saw the highest import unit price in over two years, crossing $1,130 per ton. With Ramadan around the corner, prices are expected to remain firm.
Pakistan’s palm oil import bill for July-January FY25 stands at $1.9 billion—up 17 percent year-on-year. Import quantities have also increased, averaging 270,000 tons per month, up 9 percent year-on-year. The last time import volumes were higher during this period was in FY21 when COVID-induced price drops and Afghanistan’s border situation led to excessive inflows, including through smuggling. This time, it appears more of a demand-driven surge.
Global market movements are shaping the outlook. Palm oil prices have been on the rise, but a key concern emerged when India’s January 2025 palm oil imports hit a 14-year low. India—the world’s largest palm oil buyer—is witnessing a shift in edible oil consumption. Soybean oil, once a close competitor, is now outpacing palm oil imports. Price advantage has played a key role in this shift. Business Recorder
---------
SD Guthrie Offers Sustainable Palm Oil Sourcing Solution
SD Guthrie leads sustainable palm oil production, offering traceable, EUDR-compliant solutions for businesses navigating stricter regulations
Palm oil production, notably in Southeast Asia, has historically driven deforestation. Between 1990 and 2005, a significant 55-60% of oil palm expansion in Indonesia was at the expense of virgin forests.
Yet, there's a declining pattern in the deforestation associated with palm oil. In 2021, the levels in Indonesia, Malaysia, and Papua New Guinea reached a record low since 2017.
Moreover, palm oil plantations on peatland are responsible for contributing a substantial 16.6% to 27.9% of the total greenhouse gas emissions from Malaysia and Indonesia. The industry also affects water quality as palm oil mills produce significant effluent that can contaminate freshwater sources.
Despite these ecological challenges, innovative sustainable palm oil production methods are emerging to mitigate the environmental impacts.
Leading the way in these efforts, SD Guthrie Bhd (SDG) sets benchmarks in responsible sourcing, environmental conservation and ethical supply chain practices, controlling its palm oil value chain from plantation to distribution. This control allows for unmatched traceability and quality assurance at every stage. Supply Chain
--------
The EU Commission is getting serious about reducing bureaucracy
The EU Commission is getting serious about cutting red tape & will free four laws of #bureaucracy in a first step: Corporate Sustainability Reporting (#CSRD), Due Diligence (#CSDDD), #Taxonomy & Carbon Border Adjustment Mechanism (#CBAM).
In a first step, four laws are to be freed from bureaucratic burdens / Over 90% of companies previously subject to CBAM reporting obligations will be completely exempt / Support for industry in transitioning to climate neutrality and a package of measures to lower electricity prices
“The European Commission is finally getting serious about cutting red tape. I expect a bold move to reduce administrative burdens in a first step involving four specific laws this coming Wednesday,” said the environmental policy spokesperson for the largest group in the European Parliament, Peter Liese (EPP), at a press conference in Brussels. The four laws concern Corporate Sustainability Reporting (CSRD), the European Due Diligence (CSDDD), the so-called Taxonomy, and the Carbon Border Adjustment Mechanism (CBAM).
“The Commission rightly says that we need to continue pursuing climate protection, and that, if done correctly, climate action can be a driver of innovation. However, we urgently need to make adjustments. In my view, developments within the European Commission can largely be attributed to pressure from Christian Democrats across Europe,” Liese continued.
Liese went into detail about plans to reduce bureaucracy in the CO₂ Carbon Border Adjustment Mechanism (CBAM): “The Commission plans to completely exempt 91% of the companies currently covered by reporting obligations. Yet 99% of emissions will still be covered. Therefore, this step is both justifiable in terms of climate policy and urgently needed from an economic standpoint. Regarding sustainability reporting, there will be a general reduction in requirements, and it will be clarified that small and medium-sized enterprises should be protected from excessive indirect effects. An easy-to-use instrument for voluntary reporting by SMEs will be introduced. Both large companies and their auditors will have to accept it. The fact that large companies and auditors simply fulfill their reporting obligations by imposing extensive requirements on their suppliers is a huge annoyance and needs to stop,” Liese said.
Behind the scenes, there are still intense negotiations within the European Commission. As there is significant resistance to reducing bureaucracy coming from the Social Democratic and Liberal groups, the Social Democratic and Liberal Commissioners are also finding it difficult. A letter from leading members of the Social Democratic group, including their leader Iratxe García Pérez states literally: “We would like to express our deep concerns regarding your announcement of an omnibus simplification package due as early as February 2025. [...] What is more, the Corporate Sustainability Due Diligence Directive (CSDDD) should by all means be excluded from the simplification exercise.”
“The Social Democrats’ letter is a slap in the face of small and medium-sized enterprises throughout Europe. I hope—and I am confident—that this resistance will be overcome and that the Commission will propose a bold plan,” Liese concluded. Peter Liese
Exclusive: Indian refiners cancel palm oil orders due to price surge
Summary
- Palm oil has reached unusual premium over soyoil
- Buyers and sellers mutually agreeing to cancel contracts
- India is world's biggest palm oil importer
Refiners in the world's largest importer of palm oil cancelled the quantity over the last four days, including 30,000 tons on Friday, after Malaysian palm oil futures rose more than 11% over four weeks.
The Indian cancellations could limit the rally in Malaysian palm oil prices, although they could also support soyoil prices as some refiners shift to soyoil.
The trade sources spoke on condition of anonymity because they were not authorised to speak to the press.
One Indian buyer, who operates a refinery on the east coast and cancelled palm oil shipments for March delivery, said the combination of negative refining margins in India and high overseas prices meant it made sense to lock in profits by selling palm oil back to suppliers, rather than importing it. Reuters
--------
Palm oil prices continue to rise as demand remains strong
Soaring palm oil prices are expected to be supportive for canola values because of its dominant role in the veg oil complex
SASKATOON — Palm oil futures have been on a rocket ride since the summer of 2024.
Tight supplies have supported prices, making palm oil less competitive with its main rival, soybean oil, according to the Council of Palm Oil Producing Countries (CPOPC).
Palm oil traded as high as $1,250 per tonne at the end of 2024, but demand remained resilient due to the lack of alternative vegetable oils, the organization said in its Annual Report Market & Outlook 2025.
That strong demand supported prices during the second half of 2024 and so far in 2025. Futures are up 31 per cent since late-August.
CPCOC is optimistic palm oil will continue trading at $1,000 to $1,250 per tonne during the first quarter of 2025 due to increased biodiesel use in Indonesia, lower stocks in producing countries and seasonally low production in the coming months.
“However, palm oil prices are expected to be traded lower in the second half of 2025 due to the seasonally high yielding production cycle and harvesting season for rapeseed and sunflower seed,” it said.
Glacier MarketsFarm analyst Mike Jubinville said soaring palm oil prices are supportive for canola values.
“Palm oil is the dominant vegetable oil,” he said.
“The influence is there, (although) we don’t necessarily compete head to head in most markets.” Producer
--------
Palm oil: India key to future prices
BR Research
Cooking oil prices in Pakistan’s retail market have hit a 15-month high. The surge comes on the back of rising palm oil import costs, which have pushed domestic prices higher. January 2025 saw the highest import unit price in over two years, crossing $1,130 per ton. With Ramadan around the corner, prices are expected to remain firm.
Pakistan’s palm oil import bill for July-January FY25 stands at $1.9 billion—up 17 percent year-on-year. Import quantities have also increased, averaging 270,000 tons per month, up 9 percent year-on-year. The last time import volumes were higher during this period was in FY21 when COVID-induced price drops and Afghanistan’s border situation led to excessive inflows, including through smuggling. This time, it appears more of a demand-driven surge.
Global market movements are shaping the outlook. Palm oil prices have been on the rise, but a key concern emerged when India’s January 2025 palm oil imports hit a 14-year low. India—the world’s largest palm oil buyer—is witnessing a shift in edible oil consumption. Soybean oil, once a close competitor, is now outpacing palm oil imports. Price advantage has played a key role in this shift. Business Recorder
---------
SD Guthrie Offers Sustainable Palm Oil Sourcing Solution
SD Guthrie leads sustainable palm oil production, offering traceable, EUDR-compliant solutions for businesses navigating stricter regulations
Palm oil production, notably in Southeast Asia, has historically driven deforestation. Between 1990 and 2005, a significant 55-60% of oil palm expansion in Indonesia was at the expense of virgin forests.
Yet, there's a declining pattern in the deforestation associated with palm oil. In 2021, the levels in Indonesia, Malaysia, and Papua New Guinea reached a record low since 2017.
Moreover, palm oil plantations on peatland are responsible for contributing a substantial 16.6% to 27.9% of the total greenhouse gas emissions from Malaysia and Indonesia. The industry also affects water quality as palm oil mills produce significant effluent that can contaminate freshwater sources.
Despite these ecological challenges, innovative sustainable palm oil production methods are emerging to mitigate the environmental impacts.
Leading the way in these efforts, SD Guthrie Bhd (SDG) sets benchmarks in responsible sourcing, environmental conservation and ethical supply chain practices, controlling its palm oil value chain from plantation to distribution. This control allows for unmatched traceability and quality assurance at every stage. Supply Chain
--------
The EU Commission is getting serious about reducing bureaucracy
The EU Commission is getting serious about cutting red tape & will free four laws of #bureaucracy in a first step: Corporate Sustainability Reporting (#CSRD), Due Diligence (#CSDDD), #Taxonomy & Carbon Border Adjustment Mechanism (#CBAM).
In a first step, four laws are to be freed from bureaucratic burdens / Over 90% of companies previously subject to CBAM reporting obligations will be completely exempt / Support for industry in transitioning to climate neutrality and a package of measures to lower electricity prices
“The European Commission is finally getting serious about cutting red tape. I expect a bold move to reduce administrative burdens in a first step involving four specific laws this coming Wednesday,” said the environmental policy spokesperson for the largest group in the European Parliament, Peter Liese (EPP), at a press conference in Brussels. The four laws concern Corporate Sustainability Reporting (CSRD), the European Due Diligence (CSDDD), the so-called Taxonomy, and the Carbon Border Adjustment Mechanism (CBAM).
“The Commission rightly says that we need to continue pursuing climate protection, and that, if done correctly, climate action can be a driver of innovation. However, we urgently need to make adjustments. In my view, developments within the European Commission can largely be attributed to pressure from Christian Democrats across Europe,” Liese continued.
Liese went into detail about plans to reduce bureaucracy in the CO₂ Carbon Border Adjustment Mechanism (CBAM): “The Commission plans to completely exempt 91% of the companies currently covered by reporting obligations. Yet 99% of emissions will still be covered. Therefore, this step is both justifiable in terms of climate policy and urgently needed from an economic standpoint. Regarding sustainability reporting, there will be a general reduction in requirements, and it will be clarified that small and medium-sized enterprises should be protected from excessive indirect effects. An easy-to-use instrument for voluntary reporting by SMEs will be introduced. Both large companies and their auditors will have to accept it. The fact that large companies and auditors simply fulfill their reporting obligations by imposing extensive requirements on their suppliers is a huge annoyance and needs to stop,” Liese said.
Behind the scenes, there are still intense negotiations within the European Commission. As there is significant resistance to reducing bureaucracy coming from the Social Democratic and Liberal groups, the Social Democratic and Liberal Commissioners are also finding it difficult. A letter from leading members of the Social Democratic group, including their leader Iratxe García Pérez states literally: “We would like to express our deep concerns regarding your announcement of an omnibus simplification package due as early as February 2025. [...] What is more, the Corporate Sustainability Due Diligence Directive (CSDDD) should by all means be excluded from the simplification exercise.”
“The Social Democrats’ letter is a slap in the face of small and medium-sized enterprises throughout Europe. I hope—and I am confident—that this resistance will be overcome and that the Commission will propose a bold plan,” Liese concluded. Peter Liese
February 20, 2025
Fat Hopes Energy and Topsoe forge partnership to advance SAF production in Malaysia
Malaysia's pioneer biofuel feedstock aggregator FatHopes Energy has forged a partnership with Topsoe, a Denmark-based leader in carbon reduction technologies and signed a Memorandum of Understanding (MoU) to explore the development of a sustainable aviation fuel (SAF) refinery in Malaysia.
The project will leverage renewable feedstocks such as used cooking oil (UCO) and other waste-based oils to produce advanced aviation biofuels, contributing to the global decarbonization of the aviation sectors.
Under the MoU, Topsoe will provide its cutting-edge technologies, including catalyst solutions and engineering expertise, to assess the feasibility of establishing the proposed refinery. The first phase of this collaboration will involve a detailed feasibility study focused on evaluating Malaysia as the ideal location for a state-of-the-art SAF facility that aligns with global sustainability goals.
FatHopes Energy will utilise its unique know how and extensive network of feedstock aggregation to ensure a robust supply chain of waste-based raw materials. The facility, once developed, could either be operated by FatHopes Energy or licensed to a third-party operatorfor commercialisation.
This announcement comes ahead of the 36th Palm & Lauric Oils Price Outlook Conference & Exhibition (POC2025) in Kuala Lumpur, Malaysia.
As one of the world’s largest producers of palm oil, the country has great aspiration and is taking a leadership role in the development of SAF, which is emerging as a critical solution to decarbonise the aviation industry.
This project offers potential to meet the domestic SAF requirements while supporting the nation’s ambition to transition toward more sustainable energy sources. Additionally, Palm Oil related material’s or POME’s specific use as SAF feedstocks can meet sustainability requirements through relevant certifications, dependent on each jurisdiction.
The MoU aligns with Malaysia's strategic goals of diversifying its energy streams and reducing its carbon footprint.
“This partnership underscores our shared commitment to accelerating the energy transition, by delivering high-quality, renewable fuels that reduce carbon emissions,” said Milica Folic, Product Line Director at Topsoe. “By combining Topsoe’s HydroFlex® technology with FatHopes Energy’s expertise in sustainable feedstock aggregation, we are setting the stage for a transformative project.” Biofuels News
--------
Golden Agri-Resources and ED&F Man Partner to Expand Sustainable Palm-Based Animal Feed in North America
Houston, 17 February 2025 – Golden Agri-Resources (GAR), a leading seed-to-shelf agribusiness, has entered a long-term strategic partnership with ED&F Man Liquid Products-North America (MLP) and Westway Feed Products (WFP) to expand the market for sustainable palm-based animal feed supplements in North America.
This collaboration will provide new customers in North America, particularly in the USA, Canada, and Mexico, with direct access to high-quality, sustainable, palm-based animal feed supplements. The partnership ensures a fully integrated supply chain, offering seamless logistics from production sites to distribution across the North American region.
“We are committed to offering top-quality products while also providing expert nutritional guidance to support our customers’ needs. Simultaneously, we focus on optimising delivery efficiency and maintaining exceptional service standards to ensure a seamless and satisfying customer experience,” said Gerardo Pla Otanez, Vice President, US Oleo & Feed at GAR.
The partnership will focus on delivering specialised products under the GoNutri brand. GoNutri Energy helps dairy farmers enhance milk fat percentage and milk production, while GoNutri Protect supports gut health in swine and poultry. Additionally, the collaboration envisions expanding the supply chain of palm oil-based solutions for feed, further enhancing animal nutrition and performance.
Whit Huguley, Managing Director-Americas for MLP stated, “We are excited to collaborate with GAR, leveraging our deep customer knowledge in the region, industry connections, and extensive distribution network. Backed by specialised experts, we are well positioned to deliver reliable supply and technical support to customers across North America.
Maarten van der Hoeven, Head of Europe & Latin America of GAR added, “This partnership aligns with our growth strategy in the Americas for the feed sector, where demand for high-quality animal nutrition solutions is rising. We see a great potential for our GoNutri products, as palm-based ingredients offer a competitive and reliable alternative to traditional feedstocks, ensuring a sustainable and efficient supply for the industry. By working with ED&F Man, we can better serve this growing market with innovative and responsible feed solutions.” Golden Agri
--------
Patanjali to set up oil palm mill in Mizoram, boosting local farming
Patanjali Foods plans to set up an oil palm mill in Mizoram, boosting local cultivation and supporting farmers in southern districts. The project aims for completion within a year.
Patanjali Foods Ltd has announced plans to set up a new oil palm mill in Mizoram. During a meeting with Chief Minister Lalduhoma in Aizawl on Thursday, two senior officials from Patanjali revealed that the mill would be located in Liapha, a region in Lawngtlai district, southern Mizoram. The company expects the mill to be operational within a year.
In addition to the mill, Patanjali plans to source oil palm from local farmers in the districts of Serchhip, Lunglei, Lawngtlai, and Siaha.
The Chief Minister raised concerns about the challenges faced by oil palm farmers in these southern regions, particularly in terms of cultivation and support. He also shared the state’s strategy to boost oil palm farming in these areas, ensuring better growth and sustainability for local farmers.
Patanjali’s commitment to promoting oil palm cultivation aligns with the state’s broader goals to enhance the agriculture sector.
As part of this initiative, the company officials assured the CM that they would take proactive measures to support the expansion of oil palm farming in Mizoram, especially in the southern districts.
Oil palm, which people use in food production, cosmetics, and biofuels, has become increasingly popular due to its versatility and long shelf life.
Globally, palm oil accounts for around 36% of oils produced from oil crops. It’s widely used by food manufacturers because it is easy to stabilize, maintain flavor consistency, and provide texture in processed foods.
Palm oil has more to offer than just its industrial applications. It contains antioxidants like carotenoids and tocotrienols, which have their unique health benefits.
These antioxidants help protect the body’s cells from damage and can boost the immune system. Carotenoids also convert into vitamin A, which is vital for vision and heart health.
Furthermore, tocotrienols may improve brain function, slow down the progression of dementia, and even reduce the risk of stroke. The Statesman
--------
Farming System Projected To Increase The Agricultural Income Of 55,000 Households In Mizoram
The state government's flagship programme - 'Bana Kaih' or handholding scheme - was launched in September last year to provide financial assistance and support to entrepreneurs and farmers.
Mizoram Governor General (Retired) Vijay Kumar Singh on Wednesday said that agriculture remains the chief focus of the state government with a mission to enhance sustainable agriculture crop productivity. Delivering his maiden address on the first day of the budget session of the state assembly, Singh said that the Fostering Climate Resilient Upland Farming System project to increase the system is being implemented across six districts of the state. He said that the state government's flagship programme - 'Bana Kaih' or handholding scheme - was launched in September last year to provide financial assistance and support to entrepreneurs and farmers through several targeted programmes designed to promote inclusive economic growth and self-sufficiency.
The scheme comprises five key components, one of which is handholding to progress partners, under which eligible partners (beneficiaries) will be provided loans from the partner banks and financial institutions, he said. Under the Bana Kaih scheme, the state government will purchase four key crops like ginger, broom grass, turmeric, and Mizo bird-eye chilli from farmers and has introduced a minimum support price for such crops, he said. Chief Minister Lalduhoma said that the government will start mass collection of fresh ginger from Thursday and will also purchase broomsticks from farmers within March. The governor, in his address, mentioned that a total of 1,734 hectares area has been covered so far in five districts under the National Mission on Edible Oils-Oil Palm (NMEO-Oil Palm) out of the targeted area of 2,500 hectares during the 2024-25 fiscal. During the current financial year, palm oil growers in the state have sold 5,509 MT of palm oil and 703 MT of crude palm oil to the partner companies, he said. Read more at: https://www.ndtvprofit.com/nation/mz-assembly-guv-agriculture
Copyright © NDTV Profit
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EU Commission presents its roadmap for a thriving EU farming and agri-food sector
Today, the Commission is presenting its Vision for Agriculture and Food, an ambitious roadmap on the future of farming and food in Europe. This roadmap sets the stage for an attractive, competitive, resilient, future-oriented and fair agri-food system for current and future generations of farmers and agri-food operators.
Simplifying further our policies and increasing the uptake of innovation and digitalisation are pre-requisites to all actions outlined in the Vision. Later in 2025, the Commission will propose a comprehensive simplification package for the current agricultural legislative framework, along with an EU digital strategy for agriculture to support the transition to digital-ready farming.
Ursula von der Leyen, President of the European Commission, said: “Our farmers take centre stage in the EU's food production system. It is thanks to their daily, hard work that all of us have safe and high-quality food. Yet, our farmers face the growing challenges of global competition and climate change. That is why today, we are offering a comprehensive strategy that makes farming more attractive, more resilient and more sustainable.”
The Vision outlines four priority areas: EUROPA
Fat Hopes Energy and Topsoe forge partnership to advance SAF production in Malaysia
Malaysia's pioneer biofuel feedstock aggregator FatHopes Energy has forged a partnership with Topsoe, a Denmark-based leader in carbon reduction technologies and signed a Memorandum of Understanding (MoU) to explore the development of a sustainable aviation fuel (SAF) refinery in Malaysia.
The project will leverage renewable feedstocks such as used cooking oil (UCO) and other waste-based oils to produce advanced aviation biofuels, contributing to the global decarbonization of the aviation sectors.
Under the MoU, Topsoe will provide its cutting-edge technologies, including catalyst solutions and engineering expertise, to assess the feasibility of establishing the proposed refinery. The first phase of this collaboration will involve a detailed feasibility study focused on evaluating Malaysia as the ideal location for a state-of-the-art SAF facility that aligns with global sustainability goals.
FatHopes Energy will utilise its unique know how and extensive network of feedstock aggregation to ensure a robust supply chain of waste-based raw materials. The facility, once developed, could either be operated by FatHopes Energy or licensed to a third-party operatorfor commercialisation.
This announcement comes ahead of the 36th Palm & Lauric Oils Price Outlook Conference & Exhibition (POC2025) in Kuala Lumpur, Malaysia.
As one of the world’s largest producers of palm oil, the country has great aspiration and is taking a leadership role in the development of SAF, which is emerging as a critical solution to decarbonise the aviation industry.
This project offers potential to meet the domestic SAF requirements while supporting the nation’s ambition to transition toward more sustainable energy sources. Additionally, Palm Oil related material’s or POME’s specific use as SAF feedstocks can meet sustainability requirements through relevant certifications, dependent on each jurisdiction.
The MoU aligns with Malaysia's strategic goals of diversifying its energy streams and reducing its carbon footprint.
“This partnership underscores our shared commitment to accelerating the energy transition, by delivering high-quality, renewable fuels that reduce carbon emissions,” said Milica Folic, Product Line Director at Topsoe. “By combining Topsoe’s HydroFlex® technology with FatHopes Energy’s expertise in sustainable feedstock aggregation, we are setting the stage for a transformative project.” Biofuels News
--------
Golden Agri-Resources and ED&F Man Partner to Expand Sustainable Palm-Based Animal Feed in North America
Houston, 17 February 2025 – Golden Agri-Resources (GAR), a leading seed-to-shelf agribusiness, has entered a long-term strategic partnership with ED&F Man Liquid Products-North America (MLP) and Westway Feed Products (WFP) to expand the market for sustainable palm-based animal feed supplements in North America.
This collaboration will provide new customers in North America, particularly in the USA, Canada, and Mexico, with direct access to high-quality, sustainable, palm-based animal feed supplements. The partnership ensures a fully integrated supply chain, offering seamless logistics from production sites to distribution across the North American region.
“We are committed to offering top-quality products while also providing expert nutritional guidance to support our customers’ needs. Simultaneously, we focus on optimising delivery efficiency and maintaining exceptional service standards to ensure a seamless and satisfying customer experience,” said Gerardo Pla Otanez, Vice President, US Oleo & Feed at GAR.
The partnership will focus on delivering specialised products under the GoNutri brand. GoNutri Energy helps dairy farmers enhance milk fat percentage and milk production, while GoNutri Protect supports gut health in swine and poultry. Additionally, the collaboration envisions expanding the supply chain of palm oil-based solutions for feed, further enhancing animal nutrition and performance.
Whit Huguley, Managing Director-Americas for MLP stated, “We are excited to collaborate with GAR, leveraging our deep customer knowledge in the region, industry connections, and extensive distribution network. Backed by specialised experts, we are well positioned to deliver reliable supply and technical support to customers across North America.
Maarten van der Hoeven, Head of Europe & Latin America of GAR added, “This partnership aligns with our growth strategy in the Americas for the feed sector, where demand for high-quality animal nutrition solutions is rising. We see a great potential for our GoNutri products, as palm-based ingredients offer a competitive and reliable alternative to traditional feedstocks, ensuring a sustainable and efficient supply for the industry. By working with ED&F Man, we can better serve this growing market with innovative and responsible feed solutions.” Golden Agri
--------
Patanjali to set up oil palm mill in Mizoram, boosting local farming
Patanjali Foods plans to set up an oil palm mill in Mizoram, boosting local cultivation and supporting farmers in southern districts. The project aims for completion within a year.
Patanjali Foods Ltd has announced plans to set up a new oil palm mill in Mizoram. During a meeting with Chief Minister Lalduhoma in Aizawl on Thursday, two senior officials from Patanjali revealed that the mill would be located in Liapha, a region in Lawngtlai district, southern Mizoram. The company expects the mill to be operational within a year.
In addition to the mill, Patanjali plans to source oil palm from local farmers in the districts of Serchhip, Lunglei, Lawngtlai, and Siaha.
The Chief Minister raised concerns about the challenges faced by oil palm farmers in these southern regions, particularly in terms of cultivation and support. He also shared the state’s strategy to boost oil palm farming in these areas, ensuring better growth and sustainability for local farmers.
Patanjali’s commitment to promoting oil palm cultivation aligns with the state’s broader goals to enhance the agriculture sector.
As part of this initiative, the company officials assured the CM that they would take proactive measures to support the expansion of oil palm farming in Mizoram, especially in the southern districts.
Oil palm, which people use in food production, cosmetics, and biofuels, has become increasingly popular due to its versatility and long shelf life.
Globally, palm oil accounts for around 36% of oils produced from oil crops. It’s widely used by food manufacturers because it is easy to stabilize, maintain flavor consistency, and provide texture in processed foods.
Palm oil has more to offer than just its industrial applications. It contains antioxidants like carotenoids and tocotrienols, which have their unique health benefits.
These antioxidants help protect the body’s cells from damage and can boost the immune system. Carotenoids also convert into vitamin A, which is vital for vision and heart health.
Furthermore, tocotrienols may improve brain function, slow down the progression of dementia, and even reduce the risk of stroke. The Statesman
--------
Farming System Projected To Increase The Agricultural Income Of 55,000 Households In Mizoram
The state government's flagship programme - 'Bana Kaih' or handholding scheme - was launched in September last year to provide financial assistance and support to entrepreneurs and farmers.
Mizoram Governor General (Retired) Vijay Kumar Singh on Wednesday said that agriculture remains the chief focus of the state government with a mission to enhance sustainable agriculture crop productivity. Delivering his maiden address on the first day of the budget session of the state assembly, Singh said that the Fostering Climate Resilient Upland Farming System project to increase the system is being implemented across six districts of the state. He said that the state government's flagship programme - 'Bana Kaih' or handholding scheme - was launched in September last year to provide financial assistance and support to entrepreneurs and farmers through several targeted programmes designed to promote inclusive economic growth and self-sufficiency.
The scheme comprises five key components, one of which is handholding to progress partners, under which eligible partners (beneficiaries) will be provided loans from the partner banks and financial institutions, he said. Under the Bana Kaih scheme, the state government will purchase four key crops like ginger, broom grass, turmeric, and Mizo bird-eye chilli from farmers and has introduced a minimum support price for such crops, he said. Chief Minister Lalduhoma said that the government will start mass collection of fresh ginger from Thursday and will also purchase broomsticks from farmers within March. The governor, in his address, mentioned that a total of 1,734 hectares area has been covered so far in five districts under the National Mission on Edible Oils-Oil Palm (NMEO-Oil Palm) out of the targeted area of 2,500 hectares during the 2024-25 fiscal. During the current financial year, palm oil growers in the state have sold 5,509 MT of palm oil and 703 MT of crude palm oil to the partner companies, he said. Read more at: https://www.ndtvprofit.com/nation/mz-assembly-guv-agriculture
Copyright © NDTV Profit
--------
EU Commission presents its roadmap for a thriving EU farming and agri-food sector
Today, the Commission is presenting its Vision for Agriculture and Food, an ambitious roadmap on the future of farming and food in Europe. This roadmap sets the stage for an attractive, competitive, resilient, future-oriented and fair agri-food system for current and future generations of farmers and agri-food operators.
Simplifying further our policies and increasing the uptake of innovation and digitalisation are pre-requisites to all actions outlined in the Vision. Later in 2025, the Commission will propose a comprehensive simplification package for the current agricultural legislative framework, along with an EU digital strategy for agriculture to support the transition to digital-ready farming.
Ursula von der Leyen, President of the European Commission, said: “Our farmers take centre stage in the EU's food production system. It is thanks to their daily, hard work that all of us have safe and high-quality food. Yet, our farmers face the growing challenges of global competition and climate change. That is why today, we are offering a comprehensive strategy that makes farming more attractive, more resilient and more sustainable.”
The Vision outlines four priority areas: EUROPA
February 19, 2025
Palm oil contributes greatly to UN SDGs GAPKI
JAKARTA – The palm oil industries have contributed to the realization of global development targets as formulated by the United Nations (UN) in its sustainable development goals (SDGs) in 2015. The SDGs are part of the UN agenda to strengthen the social, economic, and environmental dimensions of sustainable development in 2030.
On the social goals, which include gender equality, reducing inequality, ending poverty, ending hunger, ending AIDS and ending discrimination, the SDGs are formulated by the UN through the SDG-1; SDG-2, SDG-3; SDG-4; SDG-5; SDG-6; SDG-11; and SDG-17.
In realizing the SDG-1 (No Poverty), the palm oil industries have played a significant role in eradicating poverty in Indonesia, while creating job opportunities at the level of villages, national and international.
The palm oil industry is also part of the solution in achieving SDG-2 (Ending Hunger) which refers to eliminating hunger and building inclusive food security at the local, national and global levels. At the global level, the palm oil industry also increases the affordability and availability of vegetable oils-based foods for low-income communities.
The palm oil industry also contributes to achieving SDG-3 (Good Health and Well-being). It is shown by the nutritional content of palm oil as a source of vitamin A and vitamin E, containing bioactive compounds and essential fatty acids and having a balanced composition of saturated and unsaturated fatty acids which are beneficial for human health. Apart from that, the palm oil industries also contribute to the realization of SDG-3 in increasing the affordability and accessibility of oil palm plantation communities to health services.
The palm oil industries also play an important role in realizing SDG-4 (Quality Education). This role is demonstrated by increasing the affordability and accessibility of oil palm plantation communities to quality education at various levels. Gapki
---------
Indonesia’s renewable feedstock exporters explore alternatives amid restrictions
HIGHLIGHTS
On Jan. 8, Indonesia, the largest supplier of palm oil in the world, said it would restrict exports of POME and UCO as the government tries to retain sufficient feedstock in the country to achieve its new 40% biodiesel blending mandate.
Soon after, Indonesia's finance ministry sent notices imposing a retroactive duty of $20/mt on POME oil exports made between July 2023 and September 2024.
The retroactive tax could push a lot of small collectors of POME to stop their business, a trader said, adding that the retroactive tax claim was "controversial."
Indonesia's additional tax demand identifies POME oil exported under HS code 2306.90.90 between July 2023 and September 2024 under a new classification called "oil cake and residue," which had an export levy of $25/mt. However, under current regulations, the tax for POME is stated at $5/mt, a Jakarta-based exporter said.
The exporter, who has received retroactive tax notices for two shipments from the customs department, said customs was asking for the difference in duties retroactively, but the law levying $25/mt on POME was repealed in 2019.
"Some exporters [are] not paying attention to this ... so they just ignore it, and surprisingly their accounts got blocked. I knew already 10-15 exporters got blocked," another POME trader said.
Meanwhile, some exporters are now turning to domestic markets where POME oil is fetching healthy prices, a source said.
The source, who closed his export company due to the export issue, is now selling to a Musim Mas refinery at Rupiah 12,800/kg (79 cents/kg), whereas a local tender for crude palm oil was at Rupiah 14,850/kg.
Scrutiny on exports
In January, Indonesia's Ministry of Trade said the country's exports of palm waste products had surpassed what it termed "reasonable capacity," which it said was around 300,000 mt.
The trade ministry said POME exports exceeding the 300,000 mt mark was the result of a "mixture practice" of blending crude palm oil with POME in order to increase exports while circumventing CPO's formerly higher levy.
The US Department of Agriculture expects Indonesia's exports of POME to reach a record high of around 2 million mt in 2024 due to continued demand from the EU, China and South Korea. Indonesia's POME exports were around 1.84 million mt in 2023, according to Commodity Insights trade data.
A palm oil analyst based in Medan, Indonesia, said some suppliers were still exporting POME but in tiny quantities.
It is also possible for exporters to relabel UCO as "refined POME" and export it, as then it would have the same HS code as refined, bleached & deodorized palm oil, the analyst said.
Platts, part of S&P Global Commodity Insights, assessed POME FOB Malaysia unchanged at $1,040/mt Feb. 17 for April-May loading cargoes.
Platts has paused assessing the price of POME FOB Indonesia since Feb. 5, considering a rollover amid the export restriction. SP Global
-------
SD Guthrie: Can Palm Oil Ever Be Sustainable?
SD Guthrie is leading on sustainable palm oil production, offering traceable, EUDR-compliant solutions for businesses navigating tightened regulations
Palm oil production has long been subject to scrutiny as a result of the environmental degradation that follows alongside it.
In places like Southeast Asia or the Amazon rainforest, palm farming has been the cause of huge amounts of deforestation, which is decried by environmentalists and the general public alike.
In Indonesia, the trend was particularly chronic. Between 1990 and 2005, palm oil farming expanded by around 60%, with virgin forests being cut down to make way for these projects.
However, recent data seems to indicate a change in tune.
In 2021, deforestation levels fell to their lowest levels since 2017 in Indonesia, Malaysia and Papua New Guinea.
Despite these green shoots, the palm oil industry will still face huge pushback from environmentalists in this part of the world, with peatland plantations in Malaysia and Indonesia accounting for roughly 16.6% to 27.9% of their total greenhouse gas emissions.
Then there's the palm oil mills, which contribute substantial pollutants that deteriorate the quality of freshwater bodies.
In response to these ecological threats, sustainable practices in palm oil production are increasingly being embraced to mitigate adverse impacts on the environment. Sustainability Magazine
--------
PM Marape welcomes PNG’s membership in the Council of Palm Oil Producing Countries
Prime Minister James Marape has today welcomed Papua New Guinea’s official membership in the Council of Palm Oil Producing Countries (CPOPC), marking a historic milestone for the nation’s oil palm industry.
PNG joins Indonesia, Malaysia, and Honduras as the fourth member of the global palm oil organisation, strengthening the country’s position in international trade and sustainability advocacy.
Speaking at a high-level meeting attended by CPOPC Secretary-General Dr Rizal Affandi Lukman, Deputy Secretary-General Datuk Nageeb Wahab, PNG’s Oil Palm Minister Francis Maneke, Indonesian Ambassador His Excellency Andriana Supandy, Agriculture Secretary Dr Sergie Bang, and Oil Palm Industry Corporation General Secretary Kepson Pupita, Prime Minister Marape reaffirmed PNG’s commitment to responsible and sustainable palm oil production.
Prime Minister Marape emphasised PNG’s active role in past CPOPC discussions, highlighting the importance of joining as a full member.
“This is a significant moment for our country. We appreciate Indonesia and Malaysia for embracing PNG into the CPOPC family. Together, we can strengthen our advocacy and ensure that the global palm oil market remains fair and sustainable,” he stated.
He noted that PNG has immense potential for growth, highlighting that over one million hectares of grassland can be utilised for palm oil cultivation.
“As a major forest nation, we will ensure that our palm oil production meets international sustainability standards and that we counter any misleading narratives about deforestation,” he said.
The Prime Minister assured stakeholders that PNG is committed to enhancing investment
opportunities and improving market access.
“We must work together to ensure PNG’s palm oil meets the requirements of international markets, including compliance with European Union regulations. Our industry must align with global standards while also benefiting from the economic opportunities that palm oil provides,” he said.
He also highlighted PNG’s ambition to develop downstream processing and biofuel production, citing Indonesia’s progress in palm oil-based renewable energy. “We must explore palm oil as a fuel alternative, as Indonesia has done successfully. This will not only boost our economy but also position us as a key player in the green energy sector,” he stated.
CPOPC Secretary-General Dr Rizal Affandi Lukman welcomed PNG’s membership, stating, “Papua New Guinea’s entry into CPOPC strengthens our collective advocacy for fair trade and sustainable palm oil production. PNG’s involvement will bring significant contributions to the industry, particularly in expanding market access and reinforcing sustainable practices.”
Dr Lukman also emphasised that PNG’s inclusion in CPOPC aligns with global efforts to address regulatory challenges such as European Union deforestation compliance. “We have been engaging with European stakeholders to ensure that regulatory frameworks recognise sustainable palm oil production. PNG’s inclusion allows us to strengthen these discussions and present a united front,” he added.
Prime Minister Marape reaffirmed PNG’s commitment to strengthening advocacy efforts alongside Indonesia and Malaysia. “We must stand together to promote fair trade policies and counter any negative narratives surrounding palm oil. As major forest nations, we have the responsibility to present our case and showcase that we are sustainable producers,” he said.
Additionally, he reiterated the government’s intention to expand palm oil into biofuel production. “Palm oil is more than just an edible oil; it is a critical resource for the future of green energy. We need to ensure that we fully maximise its potential,” he said.
Recognising industry challenges such as high operational costs and investment hurdles, the Prime Minister reassured investors that PNG is taking steps to improve the business environment. “We are working on land mobilisation programmes and tax incentives to make PNG a more attractive investment destination,” he announced.
He also highlighted the government’s K100 million annual allocation for land acquisition and infrastructure support, ensuring long-term growth in the sector. “We are putting systems in place to encourage sustainable industry expansion and create more opportunities for our people,” he stated.
Prime Minister Marape proposed hosting a CPOPC Heads of Government Meeting, bringing together leaders from member nations to discuss trade, sustainability, and global market strategies.
“We are not alone in this industry. Through collaboration with Indonesia, Malaysia, and other producers, we can build a more equitable and sustainable palm oil market. We look forward to strengthening our role in CPOPC and working together for the benefit of all palm oil-producing nations,” he concluded. Post Courier
--------
No new provisional leases for palm oil plantations, says Malaysian State Minister
MIRI, Feb 19: The Sarawak government is taking a careful approach to land utilisation for palm oil plantations by limiting the issuance of new provisional leases (PL), Minister for Food Industry, Commodity and Regional Development Datuk Seri Dr Stephen Rundi Utom says.
Speaking today at the closing of the Palm Oil Management, Technology, Exhibition and Conference (Pomtec) 2025 in Miri, Dr Rundi said the ministry is not issuing new PLs at the moment.
“We are wary about the European Union’s deforestation policies, which affect not just oil palm but also rubber, cocoa, and pepper plantations.”
Responding to questions from the media about whether any new land has been allocated for plantations, Dr Rundi emphasised the importance of protecting Native Customary Rights (NCR) land.
“About 1.6 million hectares of land have already been planted, and people are benefiting from this.
“However, we hope NCR land can still be utilised to support rural communities. This is crucial for improving their economic well-being and lifting them out of poverty,” he added.
Dr Rundi also highlighted the ongoing challenges posed by international regulations such as those from the EU.
“If these policies restrict us further, it will harm rural economies. It’s not just Malaysia; Indonesia and even Canada are facing similar battles to ensure the survival of their industries,” he stated.
The palm oil sector remains a significant contributor to Malaysia’s economy, generating over RM1 billion in revenue last year.
Dr Rundi underscored the importance of the industry’s value chain, which benefits not only large players but also smallholders.
“Smallholders are enjoying substantial returns from oil palm. This is the only complete value chain we have for them,” he explained.
The Minister also noted the need to diversify agricultural industries, highlighting fruits such as durian and rambutan, but stressed that palm oil remains vital for creating sustainable industries.
“Our ministry’s mission is to create industries that benefit the people. We hope major players in the sector will support us in achieving this goal,” he concluded.
The palm oil industry in Malaysia has faced increasing pressure from international markets, particularly due to concerns about deforestation and environmental sustainability.
The EU’s deforestation regulations, aimed at reducing imports linked to forest degradation, have placed additional scrutiny on Malaysia and Indonesia, the world’s top palm oil producers.
As Malaysia balances economic growth with environmental commitments, the future of land allocation and plantation development remains a critical issue for policymakers. – DayakDaily
Palm oil contributes greatly to UN SDGs GAPKI
JAKARTA – The palm oil industries have contributed to the realization of global development targets as formulated by the United Nations (UN) in its sustainable development goals (SDGs) in 2015. The SDGs are part of the UN agenda to strengthen the social, economic, and environmental dimensions of sustainable development in 2030.
On the social goals, which include gender equality, reducing inequality, ending poverty, ending hunger, ending AIDS and ending discrimination, the SDGs are formulated by the UN through the SDG-1; SDG-2, SDG-3; SDG-4; SDG-5; SDG-6; SDG-11; and SDG-17.
In realizing the SDG-1 (No Poverty), the palm oil industries have played a significant role in eradicating poverty in Indonesia, while creating job opportunities at the level of villages, national and international.
The palm oil industry is also part of the solution in achieving SDG-2 (Ending Hunger) which refers to eliminating hunger and building inclusive food security at the local, national and global levels. At the global level, the palm oil industry also increases the affordability and availability of vegetable oils-based foods for low-income communities.
The palm oil industry also contributes to achieving SDG-3 (Good Health and Well-being). It is shown by the nutritional content of palm oil as a source of vitamin A and vitamin E, containing bioactive compounds and essential fatty acids and having a balanced composition of saturated and unsaturated fatty acids which are beneficial for human health. Apart from that, the palm oil industries also contribute to the realization of SDG-3 in increasing the affordability and accessibility of oil palm plantation communities to health services.
The palm oil industries also play an important role in realizing SDG-4 (Quality Education). This role is demonstrated by increasing the affordability and accessibility of oil palm plantation communities to quality education at various levels. Gapki
---------
Indonesia’s renewable feedstock exporters explore alternatives amid restrictions
HIGHLIGHTS
- Explore options like shutting shop, turning to local sales
- POME exporters receive retroactive tax notices
- Exports have exceeded reasonable production: govt
On Jan. 8, Indonesia, the largest supplier of palm oil in the world, said it would restrict exports of POME and UCO as the government tries to retain sufficient feedstock in the country to achieve its new 40% biodiesel blending mandate.
Soon after, Indonesia's finance ministry sent notices imposing a retroactive duty of $20/mt on POME oil exports made between July 2023 and September 2024.
The retroactive tax could push a lot of small collectors of POME to stop their business, a trader said, adding that the retroactive tax claim was "controversial."
Indonesia's additional tax demand identifies POME oil exported under HS code 2306.90.90 between July 2023 and September 2024 under a new classification called "oil cake and residue," which had an export levy of $25/mt. However, under current regulations, the tax for POME is stated at $5/mt, a Jakarta-based exporter said.
The exporter, who has received retroactive tax notices for two shipments from the customs department, said customs was asking for the difference in duties retroactively, but the law levying $25/mt on POME was repealed in 2019.
"Some exporters [are] not paying attention to this ... so they just ignore it, and surprisingly their accounts got blocked. I knew already 10-15 exporters got blocked," another POME trader said.
Meanwhile, some exporters are now turning to domestic markets where POME oil is fetching healthy prices, a source said.
The source, who closed his export company due to the export issue, is now selling to a Musim Mas refinery at Rupiah 12,800/kg (79 cents/kg), whereas a local tender for crude palm oil was at Rupiah 14,850/kg.
Scrutiny on exports
In January, Indonesia's Ministry of Trade said the country's exports of palm waste products had surpassed what it termed "reasonable capacity," which it said was around 300,000 mt.
The trade ministry said POME exports exceeding the 300,000 mt mark was the result of a "mixture practice" of blending crude palm oil with POME in order to increase exports while circumventing CPO's formerly higher levy.
The US Department of Agriculture expects Indonesia's exports of POME to reach a record high of around 2 million mt in 2024 due to continued demand from the EU, China and South Korea. Indonesia's POME exports were around 1.84 million mt in 2023, according to Commodity Insights trade data.
A palm oil analyst based in Medan, Indonesia, said some suppliers were still exporting POME but in tiny quantities.
It is also possible for exporters to relabel UCO as "refined POME" and export it, as then it would have the same HS code as refined, bleached & deodorized palm oil, the analyst said.
Platts, part of S&P Global Commodity Insights, assessed POME FOB Malaysia unchanged at $1,040/mt Feb. 17 for April-May loading cargoes.
Platts has paused assessing the price of POME FOB Indonesia since Feb. 5, considering a rollover amid the export restriction. SP Global
-------
SD Guthrie: Can Palm Oil Ever Be Sustainable?
SD Guthrie is leading on sustainable palm oil production, offering traceable, EUDR-compliant solutions for businesses navigating tightened regulations
Palm oil production has long been subject to scrutiny as a result of the environmental degradation that follows alongside it.
In places like Southeast Asia or the Amazon rainforest, palm farming has been the cause of huge amounts of deforestation, which is decried by environmentalists and the general public alike.
In Indonesia, the trend was particularly chronic. Between 1990 and 2005, palm oil farming expanded by around 60%, with virgin forests being cut down to make way for these projects.
However, recent data seems to indicate a change in tune.
In 2021, deforestation levels fell to their lowest levels since 2017 in Indonesia, Malaysia and Papua New Guinea.
Despite these green shoots, the palm oil industry will still face huge pushback from environmentalists in this part of the world, with peatland plantations in Malaysia and Indonesia accounting for roughly 16.6% to 27.9% of their total greenhouse gas emissions.
Then there's the palm oil mills, which contribute substantial pollutants that deteriorate the quality of freshwater bodies.
In response to these ecological threats, sustainable practices in palm oil production are increasingly being embraced to mitigate adverse impacts on the environment. Sustainability Magazine
--------
PM Marape welcomes PNG’s membership in the Council of Palm Oil Producing Countries
Prime Minister James Marape has today welcomed Papua New Guinea’s official membership in the Council of Palm Oil Producing Countries (CPOPC), marking a historic milestone for the nation’s oil palm industry.
PNG joins Indonesia, Malaysia, and Honduras as the fourth member of the global palm oil organisation, strengthening the country’s position in international trade and sustainability advocacy.
Speaking at a high-level meeting attended by CPOPC Secretary-General Dr Rizal Affandi Lukman, Deputy Secretary-General Datuk Nageeb Wahab, PNG’s Oil Palm Minister Francis Maneke, Indonesian Ambassador His Excellency Andriana Supandy, Agriculture Secretary Dr Sergie Bang, and Oil Palm Industry Corporation General Secretary Kepson Pupita, Prime Minister Marape reaffirmed PNG’s commitment to responsible and sustainable palm oil production.
Prime Minister Marape emphasised PNG’s active role in past CPOPC discussions, highlighting the importance of joining as a full member.
“This is a significant moment for our country. We appreciate Indonesia and Malaysia for embracing PNG into the CPOPC family. Together, we can strengthen our advocacy and ensure that the global palm oil market remains fair and sustainable,” he stated.
He noted that PNG has immense potential for growth, highlighting that over one million hectares of grassland can be utilised for palm oil cultivation.
“As a major forest nation, we will ensure that our palm oil production meets international sustainability standards and that we counter any misleading narratives about deforestation,” he said.
The Prime Minister assured stakeholders that PNG is committed to enhancing investment
opportunities and improving market access.
“We must work together to ensure PNG’s palm oil meets the requirements of international markets, including compliance with European Union regulations. Our industry must align with global standards while also benefiting from the economic opportunities that palm oil provides,” he said.
He also highlighted PNG’s ambition to develop downstream processing and biofuel production, citing Indonesia’s progress in palm oil-based renewable energy. “We must explore palm oil as a fuel alternative, as Indonesia has done successfully. This will not only boost our economy but also position us as a key player in the green energy sector,” he stated.
CPOPC Secretary-General Dr Rizal Affandi Lukman welcomed PNG’s membership, stating, “Papua New Guinea’s entry into CPOPC strengthens our collective advocacy for fair trade and sustainable palm oil production. PNG’s involvement will bring significant contributions to the industry, particularly in expanding market access and reinforcing sustainable practices.”
Dr Lukman also emphasised that PNG’s inclusion in CPOPC aligns with global efforts to address regulatory challenges such as European Union deforestation compliance. “We have been engaging with European stakeholders to ensure that regulatory frameworks recognise sustainable palm oil production. PNG’s inclusion allows us to strengthen these discussions and present a united front,” he added.
Prime Minister Marape reaffirmed PNG’s commitment to strengthening advocacy efforts alongside Indonesia and Malaysia. “We must stand together to promote fair trade policies and counter any negative narratives surrounding palm oil. As major forest nations, we have the responsibility to present our case and showcase that we are sustainable producers,” he said.
Additionally, he reiterated the government’s intention to expand palm oil into biofuel production. “Palm oil is more than just an edible oil; it is a critical resource for the future of green energy. We need to ensure that we fully maximise its potential,” he said.
Recognising industry challenges such as high operational costs and investment hurdles, the Prime Minister reassured investors that PNG is taking steps to improve the business environment. “We are working on land mobilisation programmes and tax incentives to make PNG a more attractive investment destination,” he announced.
He also highlighted the government’s K100 million annual allocation for land acquisition and infrastructure support, ensuring long-term growth in the sector. “We are putting systems in place to encourage sustainable industry expansion and create more opportunities for our people,” he stated.
Prime Minister Marape proposed hosting a CPOPC Heads of Government Meeting, bringing together leaders from member nations to discuss trade, sustainability, and global market strategies.
“We are not alone in this industry. Through collaboration with Indonesia, Malaysia, and other producers, we can build a more equitable and sustainable palm oil market. We look forward to strengthening our role in CPOPC and working together for the benefit of all palm oil-producing nations,” he concluded. Post Courier
--------
No new provisional leases for palm oil plantations, says Malaysian State Minister
MIRI, Feb 19: The Sarawak government is taking a careful approach to land utilisation for palm oil plantations by limiting the issuance of new provisional leases (PL), Minister for Food Industry, Commodity and Regional Development Datuk Seri Dr Stephen Rundi Utom says.
Speaking today at the closing of the Palm Oil Management, Technology, Exhibition and Conference (Pomtec) 2025 in Miri, Dr Rundi said the ministry is not issuing new PLs at the moment.
“We are wary about the European Union’s deforestation policies, which affect not just oil palm but also rubber, cocoa, and pepper plantations.”
Responding to questions from the media about whether any new land has been allocated for plantations, Dr Rundi emphasised the importance of protecting Native Customary Rights (NCR) land.
“About 1.6 million hectares of land have already been planted, and people are benefiting from this.
“However, we hope NCR land can still be utilised to support rural communities. This is crucial for improving their economic well-being and lifting them out of poverty,” he added.
Dr Rundi also highlighted the ongoing challenges posed by international regulations such as those from the EU.
“If these policies restrict us further, it will harm rural economies. It’s not just Malaysia; Indonesia and even Canada are facing similar battles to ensure the survival of their industries,” he stated.
The palm oil sector remains a significant contributor to Malaysia’s economy, generating over RM1 billion in revenue last year.
Dr Rundi underscored the importance of the industry’s value chain, which benefits not only large players but also smallholders.
“Smallholders are enjoying substantial returns from oil palm. This is the only complete value chain we have for them,” he explained.
The Minister also noted the need to diversify agricultural industries, highlighting fruits such as durian and rambutan, but stressed that palm oil remains vital for creating sustainable industries.
“Our ministry’s mission is to create industries that benefit the people. We hope major players in the sector will support us in achieving this goal,” he concluded.
The palm oil industry in Malaysia has faced increasing pressure from international markets, particularly due to concerns about deforestation and environmental sustainability.
The EU’s deforestation regulations, aimed at reducing imports linked to forest degradation, have placed additional scrutiny on Malaysia and Indonesia, the world’s top palm oil producers.
As Malaysia balances economic growth with environmental commitments, the future of land allocation and plantation development remains a critical issue for policymakers. – DayakDaily
February 18, 2025
Malaysia, EU join hands to resume FTA negotiations, aiming to strengthen global supply chain
Malaysia and the European Union resume free trade talks, aiming to enhance economic ties and global supply chains amid global trade war
On February 18, 2568, Nikkei Asia reported that Geopolitical and economic changes have prompted Malaysia and the European Union (EU) to restart trade talks. Aiming to strengthen economic relations and supply chains
Rafael Der, European Union Ambassador to Malaysia Speaking to Nikkei Asia, he said both sides are strongly committed to negotiating the establishment of a new free trade agreement (FTA), and that both sides would not start the process again if they were not sure whether it would be successful.
Negotiations between Malaysia and the EU began in 2553 but stalled after seven rounds of talks due to concerns about deforestation and labour issues, particularly in Malaysia's palm oil sector. These issues have led to stricter EU sustainability rules, which Malaysia sees as discriminatory.
“These issues can be resolved if we find a solution that is acceptable to both parties.” Mr. Dare said
The new discussions highlight the EU's efforts to secure its trading partnership in Southeast Asia. Especially after supply chain disruptions during the COVID-19 pandemic and geopolitical tensions following Russia's invasion of Ukraine.
For Malaysia, Southeast Asia's third-largest economy, the deal could boost its role in global supply chains, particularly in the semiconductor and electronics industries, and for Europe, it is a key hub in the Indo-Pacific region, particularly in supercomputing, green energy and smart cities.
Malaysia's trade with the EU is worth around €4.5 billion ($4.7 billion) a year, with the EU accounting for 7.6% of Malaysia's total trade and being the country's fourth-largest export destination after Singapore, the United States and China. The Netherlands and Germany are Malaysia's biggest EU trading partners. Malaysia also maintains a trade surplus with the EU, and officials believe the new deal could boost growth in renewable energy, advanced manufacturing and digital trade.
While the EU and Malaysia are hopeful of progress in talks, the timeframe for concluding an agreement remains unclear. However, Mr Dare stressed that quality is more important than speed. Rushing and facing problems later will not help, and this is a win-win situation. Asia Nikkei
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Indonesian Palm Oil Export Sees Double-Digit Drop to $1.44 Billion
Jakarta. Indonesia kicked off 2025 with a considerable drop in the export of its top commodity palm oil, according to the Central Statistics Agency (BPS).
Exports of Indonesian crude palm oil (CPO) and its derivative goods had fallen 24.1 percent from $1.89 billion in December 2024 to $1.44 billion in January 2025. Indonesian palm oil exports totaled $1.72 billion in January 2024, thus marking a 16.68 percent year-over-year decline.
The Southeast Asian country sold 2.06 million tons of its CPO and derivatives to foreign markets in the first month of 2024. The export volume then shrank as the figures only reached 1.65 million tons in December 2024, and eventually went down to 1.27 million tons the following month.
“Our CPO and derivative exports are on a decline across markets like India, Pakistan, China, to name a few,” Amalia Adininggar Widyasanti, the acting head of BPS, told a press briefing on Monday.
BPS data shows that CPO exports are suffering a double digit decline across Indonesia’s main markets. Southeast Asia’s largest economy shipped only 59,500 tons of India-bound CPO and derivatives in January 2025, down by a whopping 43.65 percent versus the December 2024 figures. In January 2024, exports to India had totaled almost 4.3 million tons.
Indonesian palm oil exports to Pakistan suffered a 52.92 percent month-to-month decline in January, only reaching 176,100 tons. Indonesian sales of its CPO to China logged the biggest drop compared to other markets. Exports of China-bound CPO only totaled 39,600 tons in the first month of 2025, down 76.93 percent compared to December 2024. Jakarta Globe
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Indonesia's conducting studies to implement 50% biodiesel blend in 2026
JAKARTA: Indonesia is studying the implementation of a biodiesel blend that contains 50 per cent palm oil in 2026, and is also looking at a 3 per cent blend for jet fuel next year, energy ministry official Eniya Listiani Dewi told parliament members on Tuesday (Feb 18).
The world's top palm oil producer this year increased the mandatory mix of palm oil in biodiesel to 40 per cent (B40) from 35 per cent to reduce reliance on imported diesel fuel.
The state plantation fund is expected to distribute 35.47 trillion rupiah (US$2.2 billion) to subsidise the country's mandatory biodiesel programme, she said.
Around half of the 15.62 million kilolitres biodiesel expected to be sold this year will be subsidised, she added. Reuters
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Environmental groups urge IMO to exclude biofuels from global fuel standard for shipping
As the International Maritime Organization (IMO) prepares to finalize climate regulations for shipping, a coalition of environmental and social justice organizations has voiced strong opposition to the industry's potential reliance on biofuels, according to Biofuelwatch.
In an open letter to the IMO, the groups warn that widespread adoption of biofuels in shipping could have severe consequences for the environment and vulnerable communities. The letter precedes crucial IMO meetings where the Global Fuel Standard (GFS) will be discussed, a standard aimed at promoting cleaner energy in the shipping sector.
The groups assert that replacing a significant portion of the shipping industry's fuel demand – which constitutes 5% of global oil consumption – with biofuels carries substantial risks. "The IMO’s 176 member states must exclude biofuels from the industry’s energy mix, due to their devastating impacts on climate, communities, forests and other ecosystems. These impacts include land and water grabbing, loss of food sovereignty, threats to food security, and widespread ecological harm," the letter states.
Brazil's proposal to the IMO, advocating for biofuels as a long-term shipping fuel solution, draws particular criticism. Given Brazil's status as a leading biofuel producer, especially of sugarcane ethanol and soy, the letter warns of potential environmental and social damage if biofuel production expands to meet shipping demands.
"Now Brazil is looking at shipping as its next customer for biofuels, but the social and environmental costs linked to this market expansion would be catastrophic," the groups contend.
Environmental groups urge IMO to exclude biofuels from global fuel standard for shipping
As the International Maritime Organization (IMO) prepares to finalize climate regulations for shipping, a coalition of environmental and social justice organizations has voiced strong opposition to the industry's potential reliance on biofuels, according to Biofuelwatch.
In an open letter to the IMO, the groups warn that widespread adoption of biofuels in shipping could have severe consequences for the environment and vulnerable communities. The letter precedes crucial IMO meetings where the Global Fuel Standard (GFS) will be discussed, a standard aimed at promoting cleaner energy in the shipping sector.
The groups assert that replacing a significant portion of the shipping industry's fuel demand – which constitutes 5% of global oil consumption – with biofuels carries substantial risks. "The IMO’s 176 member states must exclude biofuels from the industry’s energy mix, due to their devastating impacts on climate, communities, forests and other ecosystems. These impacts include land and water grabbing, loss of food sovereignty, threats to food security, and widespread ecological harm," the letter states.
Brazil's proposal to the IMO, advocating for biofuels as a long-term shipping fuel solution, draws particular criticism. Given Brazil's status as a leading biofuel producer, especially of sugarcane ethanol and soy, the letter warns of potential environmental and social damage if biofuel production expands to meet shipping demands.
"Now Brazil is looking at shipping as its next customer for biofuels, but the social and environmental costs linked to this market expansion would be catastrophic," the groups contend.
The letter highlights concerns regarding the sustainability of common biofuel feedstocks, such as soy and palm oil, citing links to deforestation, land grabbing, and biodiversity loss. It also points out the limited availability and potential for fraud associated with alternative feedstocks like used cooking oil.
"Studies have shown that the direct and indirect land use change impacts of biofuels from vegetable oils, especially from soy and palm oil exceed the life-cycle emissions of fossil diesel," the letter claims. The groups further express apprehension about the potential for increased gender inequality and socio-economic marginalization of women resulting from biofuel production. The coalition champions alternative solutions for shipping decarbonization, including improved energy efficiency, innovative ship designs, wind-assisted propulsion, and a reduction in global trade volumes.
"Sustainable solutions for the decarbonization of the shipping sector already exist. These include improved energy efficiency through stricter standards and innovative ship designs, and the adoption of advanced propulsion technologies like wind assistance," the letter emphasizes.
The groups urge the IMO to prioritize these alternatives within the GFS and exclude biofuels from the industry's long-term energy strategy. The upcoming MEPC 83 meeting is considered pivotal for the IMO to commit to a genuinely sustainable path for shipping's decarbonization. Port News Russia
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Expanding market key for China, ASEAN against global challenges
Given the growing uncertainties in the global economic and trade landscape, the urgency for China and ASEAN to deepen cooperation and leverage their market potential has never been greater.
In a speech on Monday, Malaysian Prime Minister Anwar Ibrahim said ASEAN's relationship with China needs to grow beyond traditional trade and investment and focus on preparing the region for future challenges, warning that artificial intelligence (AI) and fresh American tariffs threaten to upend the global economy, the South China Morning Post reported.
Anwar's warning underscores ASEAN's awareness of the shifting global landscape. As a critical node in the global supply chain, Southeast Asia faces significant risks from Washington's protectionist policies.
Moreover, the US containment strategy against China has led to increased scrutiny of Southeast Asia as a location for so-called roundabout ways for Chinese manufacturers to bypass US tariffs, according to media reports.
Furthermore, the rapid rise of AI presents both challenges and opportunities. While AI could displace millions of jobs by 2030, according to McKinsey, it also holds the potential to drive digital transformation. US consultancy Boston Consulting Group forecasts that the value of ASEAN's digital industries will increase to $1 trillion by 2030.
In this context, expanding and strengthening the China-ASEAN hyper-scale market is not just a strategic choice but a necessity for regional stability and growth. With a combined population of more than 2 billion and a rapidly upgrading consumer base, China and ASEAN possess unparalleled market resources. By deepening cooperation across multiple fronts, the two sides can transform these advantages into a resilient economic partnership capable of withstanding global shocks. Global Times China
Malaysia, EU join hands to resume FTA negotiations, aiming to strengthen global supply chain
Malaysia and the European Union resume free trade talks, aiming to enhance economic ties and global supply chains amid global trade war
On February 18, 2568, Nikkei Asia reported that Geopolitical and economic changes have prompted Malaysia and the European Union (EU) to restart trade talks. Aiming to strengthen economic relations and supply chains
Rafael Der, European Union Ambassador to Malaysia Speaking to Nikkei Asia, he said both sides are strongly committed to negotiating the establishment of a new free trade agreement (FTA), and that both sides would not start the process again if they were not sure whether it would be successful.
Negotiations between Malaysia and the EU began in 2553 but stalled after seven rounds of talks due to concerns about deforestation and labour issues, particularly in Malaysia's palm oil sector. These issues have led to stricter EU sustainability rules, which Malaysia sees as discriminatory.
“These issues can be resolved if we find a solution that is acceptable to both parties.” Mr. Dare said
The new discussions highlight the EU's efforts to secure its trading partnership in Southeast Asia. Especially after supply chain disruptions during the COVID-19 pandemic and geopolitical tensions following Russia's invasion of Ukraine.
For Malaysia, Southeast Asia's third-largest economy, the deal could boost its role in global supply chains, particularly in the semiconductor and electronics industries, and for Europe, it is a key hub in the Indo-Pacific region, particularly in supercomputing, green energy and smart cities.
Malaysia's trade with the EU is worth around €4.5 billion ($4.7 billion) a year, with the EU accounting for 7.6% of Malaysia's total trade and being the country's fourth-largest export destination after Singapore, the United States and China. The Netherlands and Germany are Malaysia's biggest EU trading partners. Malaysia also maintains a trade surplus with the EU, and officials believe the new deal could boost growth in renewable energy, advanced manufacturing and digital trade.
While the EU and Malaysia are hopeful of progress in talks, the timeframe for concluding an agreement remains unclear. However, Mr Dare stressed that quality is more important than speed. Rushing and facing problems later will not help, and this is a win-win situation. Asia Nikkei
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Indonesian Palm Oil Export Sees Double-Digit Drop to $1.44 Billion
Jakarta. Indonesia kicked off 2025 with a considerable drop in the export of its top commodity palm oil, according to the Central Statistics Agency (BPS).
Exports of Indonesian crude palm oil (CPO) and its derivative goods had fallen 24.1 percent from $1.89 billion in December 2024 to $1.44 billion in January 2025. Indonesian palm oil exports totaled $1.72 billion in January 2024, thus marking a 16.68 percent year-over-year decline.
The Southeast Asian country sold 2.06 million tons of its CPO and derivatives to foreign markets in the first month of 2024. The export volume then shrank as the figures only reached 1.65 million tons in December 2024, and eventually went down to 1.27 million tons the following month.
“Our CPO and derivative exports are on a decline across markets like India, Pakistan, China, to name a few,” Amalia Adininggar Widyasanti, the acting head of BPS, told a press briefing on Monday.
BPS data shows that CPO exports are suffering a double digit decline across Indonesia’s main markets. Southeast Asia’s largest economy shipped only 59,500 tons of India-bound CPO and derivatives in January 2025, down by a whopping 43.65 percent versus the December 2024 figures. In January 2024, exports to India had totaled almost 4.3 million tons.
Indonesian palm oil exports to Pakistan suffered a 52.92 percent month-to-month decline in January, only reaching 176,100 tons. Indonesian sales of its CPO to China logged the biggest drop compared to other markets. Exports of China-bound CPO only totaled 39,600 tons in the first month of 2025, down 76.93 percent compared to December 2024. Jakarta Globe
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Indonesia's conducting studies to implement 50% biodiesel blend in 2026
JAKARTA: Indonesia is studying the implementation of a biodiesel blend that contains 50 per cent palm oil in 2026, and is also looking at a 3 per cent blend for jet fuel next year, energy ministry official Eniya Listiani Dewi told parliament members on Tuesday (Feb 18).
The world's top palm oil producer this year increased the mandatory mix of palm oil in biodiesel to 40 per cent (B40) from 35 per cent to reduce reliance on imported diesel fuel.
The state plantation fund is expected to distribute 35.47 trillion rupiah (US$2.2 billion) to subsidise the country's mandatory biodiesel programme, she said.
Around half of the 15.62 million kilolitres biodiesel expected to be sold this year will be subsidised, she added. Reuters
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Environmental groups urge IMO to exclude biofuels from global fuel standard for shipping
As the International Maritime Organization (IMO) prepares to finalize climate regulations for shipping, a coalition of environmental and social justice organizations has voiced strong opposition to the industry's potential reliance on biofuels, according to Biofuelwatch.
In an open letter to the IMO, the groups warn that widespread adoption of biofuels in shipping could have severe consequences for the environment and vulnerable communities. The letter precedes crucial IMO meetings where the Global Fuel Standard (GFS) will be discussed, a standard aimed at promoting cleaner energy in the shipping sector.
The groups assert that replacing a significant portion of the shipping industry's fuel demand – which constitutes 5% of global oil consumption – with biofuels carries substantial risks. "The IMO’s 176 member states must exclude biofuels from the industry’s energy mix, due to their devastating impacts on climate, communities, forests and other ecosystems. These impacts include land and water grabbing, loss of food sovereignty, threats to food security, and widespread ecological harm," the letter states.
Brazil's proposal to the IMO, advocating for biofuels as a long-term shipping fuel solution, draws particular criticism. Given Brazil's status as a leading biofuel producer, especially of sugarcane ethanol and soy, the letter warns of potential environmental and social damage if biofuel production expands to meet shipping demands.
"Now Brazil is looking at shipping as its next customer for biofuels, but the social and environmental costs linked to this market expansion would be catastrophic," the groups contend.
Environmental groups urge IMO to exclude biofuels from global fuel standard for shipping
As the International Maritime Organization (IMO) prepares to finalize climate regulations for shipping, a coalition of environmental and social justice organizations has voiced strong opposition to the industry's potential reliance on biofuels, according to Biofuelwatch.
In an open letter to the IMO, the groups warn that widespread adoption of biofuels in shipping could have severe consequences for the environment and vulnerable communities. The letter precedes crucial IMO meetings where the Global Fuel Standard (GFS) will be discussed, a standard aimed at promoting cleaner energy in the shipping sector.
The groups assert that replacing a significant portion of the shipping industry's fuel demand – which constitutes 5% of global oil consumption – with biofuels carries substantial risks. "The IMO’s 176 member states must exclude biofuels from the industry’s energy mix, due to their devastating impacts on climate, communities, forests and other ecosystems. These impacts include land and water grabbing, loss of food sovereignty, threats to food security, and widespread ecological harm," the letter states.
Brazil's proposal to the IMO, advocating for biofuels as a long-term shipping fuel solution, draws particular criticism. Given Brazil's status as a leading biofuel producer, especially of sugarcane ethanol and soy, the letter warns of potential environmental and social damage if biofuel production expands to meet shipping demands.
"Now Brazil is looking at shipping as its next customer for biofuels, but the social and environmental costs linked to this market expansion would be catastrophic," the groups contend.
The letter highlights concerns regarding the sustainability of common biofuel feedstocks, such as soy and palm oil, citing links to deforestation, land grabbing, and biodiversity loss. It also points out the limited availability and potential for fraud associated with alternative feedstocks like used cooking oil.
"Studies have shown that the direct and indirect land use change impacts of biofuels from vegetable oils, especially from soy and palm oil exceed the life-cycle emissions of fossil diesel," the letter claims. The groups further express apprehension about the potential for increased gender inequality and socio-economic marginalization of women resulting from biofuel production. The coalition champions alternative solutions for shipping decarbonization, including improved energy efficiency, innovative ship designs, wind-assisted propulsion, and a reduction in global trade volumes.
"Sustainable solutions for the decarbonization of the shipping sector already exist. These include improved energy efficiency through stricter standards and innovative ship designs, and the adoption of advanced propulsion technologies like wind assistance," the letter emphasizes.
The groups urge the IMO to prioritize these alternatives within the GFS and exclude biofuels from the industry's long-term energy strategy. The upcoming MEPC 83 meeting is considered pivotal for the IMO to commit to a genuinely sustainable path for shipping's decarbonization. Port News Russia
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Expanding market key for China, ASEAN against global challenges
Given the growing uncertainties in the global economic and trade landscape, the urgency for China and ASEAN to deepen cooperation and leverage their market potential has never been greater.
In a speech on Monday, Malaysian Prime Minister Anwar Ibrahim said ASEAN's relationship with China needs to grow beyond traditional trade and investment and focus on preparing the region for future challenges, warning that artificial intelligence (AI) and fresh American tariffs threaten to upend the global economy, the South China Morning Post reported.
Anwar's warning underscores ASEAN's awareness of the shifting global landscape. As a critical node in the global supply chain, Southeast Asia faces significant risks from Washington's protectionist policies.
Moreover, the US containment strategy against China has led to increased scrutiny of Southeast Asia as a location for so-called roundabout ways for Chinese manufacturers to bypass US tariffs, according to media reports.
Furthermore, the rapid rise of AI presents both challenges and opportunities. While AI could displace millions of jobs by 2030, according to McKinsey, it also holds the potential to drive digital transformation. US consultancy Boston Consulting Group forecasts that the value of ASEAN's digital industries will increase to $1 trillion by 2030.
In this context, expanding and strengthening the China-ASEAN hyper-scale market is not just a strategic choice but a necessity for regional stability and growth. With a combined population of more than 2 billion and a rapidly upgrading consumer base, China and ASEAN possess unparalleled market resources. By deepening cooperation across multiple fronts, the two sides can transform these advantages into a resilient economic partnership capable of withstanding global shocks. Global Times China
February 17, 2025
‘Far, fast and beyond’: Palm oil key to food security but must prioritise R&D – ICOPE 2025
17-Feb-2025 by Pearly Neo
Palm oil can play a major role in maintaining global food security, but government and industry leaders have urged the sector to prioritise research and development to overcome its many existing challenges.
https://www.foodnavigator-asia.com/Article/2025/02/17/palm-oil-key-to-food-security-but-must-prioritise-rd-to-overcome-challenges-icope-2025/
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Not All Palm Oil Is Created Equal
SD Guthrie Bhd (SDG) has long been at the forefront of sustainable palm oil production, shaping the industry’s best practices through its commitment to climate action, conservation, human rights and responsible sourcing.
As one of the world’s largest sustainable palm oil plantation companies, SDG oversees the entire palm oil value chain — from cultivating oil palm on responsibly managed plantations to refining, processing and distributing high-quality palm oil products worldwide. This end-to-end control ensures superior traceability, sustainability and quality assurance at every stage, from seed to finished product.
Pioneering Sustainability with SD Guthrie
SD Guthrie Bhd (SDG) has long been at the forefront of sustainable palm oil production, shaping the industry’s best practices through its commitment to climate action, conservation, human rights and responsible sourcing.
As one of the world’s largest sustainable palm oil plantation companies, SDG oversees the entire palm oil value chain — from cultivating oil palm on responsibly managed plantations to refining, processing and distributing high-quality palm oil products worldwide. This end-to-end control ensures superior traceability, sustainability and quality assurance at every stage, from seed to finished product.
At the heart of SDG’s sustainability strategy is the Beyond Zero framework — a bold commitment to not only achieving a fully traceable, deforestation-free supply chain but also driving meaningful positive change. The three pillars of the framework — Zero, Restore and Transform — focus on driving credible positive impacts and creating long-term value for stakeholders. Beyond Zero reflects SDG’s holistic approach to sustainability, eliminating negative impacts (Zero) while actively restoring and transforming (Restore and Transform) ecosystems and the lives of communities. Anchored in industry-leading certifications and compliance with global regulations, including the European Union Deforestation Regulation (EUDR), Beyond Zero serves as SDG’s blueprint for a regenerative and ethical palm oil industry.
The Beyond Zero framework goes beyond a collection of corporate sustainability commitments — it is a transformational shift in the way palm oil is cultivated and processed. Its key focus areas include:
Science-based climate action: SDG is the first palm oil company globally to have its emissions reduction targets verified by the Science Based Targets initiative (SBTi).
Regenerative agriculture: The company is piloting a regenerative agriculture framework to enhance soil health and carbon sequestration efforts while reducing dependence on chemicals.
Biodiversity and conservation: With 45,000ha already set aside for conservation and over 2.7 million trees planted since 2009, SDG is leading large-scale reforestation efforts.
Empowering smallholders: By 2035, SDG aims to support 50,000 smallholders with training, certification and market access, including access to the EU. SDG delivered its first fully EUDR-compliant shipment, which included oil from 17,357 smallholders in its supply chain from Papua New Guinea and the Solomon Islands.
As SDG advances its sustainability journey, its initiatives not only set industry standards but also establish the company as a low-risk, future-proof investment.
Translating Sustainability into Market Value
While SDG sets the industry standard in sustainability, its downstream arm, SD Guthrie International (SDGI), is responsible for translating these commitments into tangible market advantages. Through its Not All Palm Oil Is Created Equal campaign, SDGI is reshaping perceptions around sustainable palm oil and reinforcing its differentiation in the marketplace. The EdgeMY
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A 14-fold jump in soyabean oil imports from Nepal triggers red flags in India
With a 19 per cent overall surge in the April to November 2024 period to nearly $3 billion compared to $2.5 billion in 2023. However, during the comparable period, Brazil — one of the top producers of the commodity — registered a drop in exports.
Soyabean oil imports saw a sharp 14-fold surge from neighbouring Nepal during the April to November period in 2024 compared to the previous year, even as Kathmandu remains a marginal producer of the commodity, an analysis of data from the Commerce and Industry Ministry has shown.
This comes as overall soyabean oil imports in India are showing a rising trend, with a 19 per cent overall surge in the April to November 2024 period to nearly $3 billion compared to $2.5 billion in 2023. However, during the comparable period, Brazil — one of the top producers of the commodity — registered a drop in exports.
The import surge has triggered some concerns in India’s policy circles, with trade experts maintaining that the trend could be a result of the possible flouting of rules of origin by Nepal and the tariff arbitrage that the country enjoys due to zero-duty access for its products into India under the Nepal-India Treaty of Trade signed in 2009.
Data suggests that there is over 30 per cent tariff advantage that Nepal enjoys
“A number of Customs officials have visited Nepal in the last seven years to check breaches of the rules of origin. Nepalese industries, which are primarily composed of Indian businesses, have set up refining industries there, but the low Nepalese consumption vis-à-vis its imports suggests that the industry largely exists to take advantage of the FTA duty structure with India,” a person aware of the issue said.
Notably, refined palm oil, refined soya oil, and refined sunflower oil attract a duty as high as 35.75 per cent.
New Delhi had raised the basic customs duty on these items by 20 per cent in September last year to protect Indian oil seed farmers. The duty prior to the change was still high at 13.75 per cent. Indian Express
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EU plans Donald Trump-style import ban on food
Brussels wants to block farm products containing prohibited pesticides
The EU wants to block imports of certain foodstuffs made to different standards to protect its farmers in an echo of US President Donald Trump’s “reciprocal” trade policy.
The European Commission will agree next week to explore greater import limits, according to three officials, a move that would raise tensions with trading partners. Early targets could include US crops such as soyabeans which are grown using pesticides EU farmers are not allowed to use.
“We have very clear signals from the parliament, very clear signals also from the member states and from our farmers: whatever is banned in the EU, it should be banned in the EU, even if it is an imported product,” health commissioner Olivér Várhelyi said in an interview last month.
Trump on Thursday attacked countries that blocked US products, including the EU, which he said barred shellfish from 48 of the US’s 50 states. He has threatened tariffs on those who do not change their policy.
The commission has long opposed calls from France and other member states for reciprocal treatment, arguing that it could be in breach of WTO rules. The body only allows restrictions on scientific grounds that do not discriminate against imports.
The EU bans many pesticides because they damage plants or animals — even as its health agency has ruled that some are safe to ingest at low levels.
The EU plan is included in a Vision for Agriculture road map drawn up by farm commissioner Christophe Hansen. An official with knowledge of the document plans said it referenced the need to abide by international rules.
“We are only talking about the most hazardous pesticides and there will be an impact assessment to protect competitiveness before any decisions,” one official said, adding that “we need coffee and mangoes and avocados”.
Várhelyi said pesticides using carcinogens, mutagens or endocrine disrupters should not be allowed into the bloc on imported food.
“If science says it is not safe, then we shouldn’t have it. If we want to be scientifically based, then science is universal. So we have to make sure whatever is imported complies with this.”
One such substance is paraquat, a herbicide banned in the EU but used in the US on crops including soyabeans.
Pesticide Action Network Europe, a campaign group, found pesticides such as the fungicide propiconazole and bee-killing neurotoxic insecticides in many imports, according to a report it published earlier this month.
“These substances often appear in ‘pesticide cocktail’ mixtures, and in some cases, their levels exceed the established legal residue limits for individual pesticides,” the group said. “Higher allowed residue limits are often maintained to accommodate international trade partners, jeopardising the health of European citizens.” FT
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Indonesian Minister Hartarto stresses urgent need to wrap up CEPA talks with EU
Jakarta (ANTARA) - Coordinating Minister for Economic Affairs, Airlangga Hartarto, has reiterated Indonesia's commitment to promptly completing negotiations on its comprehensive economic partnership agreement (CEPA) with the European Union.
"There is an urgency for Indonesia and the European Union to immediately complete the negotiation process, which will present a new opportunity for Indonesia and EU member states to increase trade and investment volumes," he said during a virtual meeting with EU Trade Commissioner Maros Sefcovic.
Although there are several remaining issues in the negotiation process, Hartarto said that Indonesia will not limit opportunities for investment.
"With the completion of the IEU-CEPA, Indonesia hopes to invite investors from the EU to explore the market in Indonesia," he added.
With the signing of the IEU-CEPA, it is hoped that economic cooperation between Indonesia and the EU will grow closer, providing mutual benefits for both parties as they face increasingly dynamic global challenges.
Meanwhile, Commissioner Sefcovic emphasized the importance of maintaining momentum in discussing a realistic timeframe for completing the IEU-CEPA negotiations that is acceptable to both parties.
He said that the differing market and economic structures of the EU and Indonesia could open up additional market opportunities.
"Global trade conditions marked by tariff wars require an appropriate mitigation strategy to ensure the smooth flow of trade and investment between Indonesia and the EU," he added.
In this regard, the EU bloc also expressed its commitment to complete the IEU-CEPA negotiations in the first half of 2025.
Nineteen rounds of the IEU-CEPA negotiations have been carried out over the last nine years. Antara News
‘Far, fast and beyond’: Palm oil key to food security but must prioritise R&D – ICOPE 2025
17-Feb-2025 by Pearly Neo
Palm oil can play a major role in maintaining global food security, but government and industry leaders have urged the sector to prioritise research and development to overcome its many existing challenges.
https://www.foodnavigator-asia.com/Article/2025/02/17/palm-oil-key-to-food-security-but-must-prioritise-rd-to-overcome-challenges-icope-2025/
--------
Not All Palm Oil Is Created Equal
SD Guthrie Bhd (SDG) has long been at the forefront of sustainable palm oil production, shaping the industry’s best practices through its commitment to climate action, conservation, human rights and responsible sourcing.
As one of the world’s largest sustainable palm oil plantation companies, SDG oversees the entire palm oil value chain — from cultivating oil palm on responsibly managed plantations to refining, processing and distributing high-quality palm oil products worldwide. This end-to-end control ensures superior traceability, sustainability and quality assurance at every stage, from seed to finished product.
Pioneering Sustainability with SD Guthrie
SD Guthrie Bhd (SDG) has long been at the forefront of sustainable palm oil production, shaping the industry’s best practices through its commitment to climate action, conservation, human rights and responsible sourcing.
As one of the world’s largest sustainable palm oil plantation companies, SDG oversees the entire palm oil value chain — from cultivating oil palm on responsibly managed plantations to refining, processing and distributing high-quality palm oil products worldwide. This end-to-end control ensures superior traceability, sustainability and quality assurance at every stage, from seed to finished product.
At the heart of SDG’s sustainability strategy is the Beyond Zero framework — a bold commitment to not only achieving a fully traceable, deforestation-free supply chain but also driving meaningful positive change. The three pillars of the framework — Zero, Restore and Transform — focus on driving credible positive impacts and creating long-term value for stakeholders. Beyond Zero reflects SDG’s holistic approach to sustainability, eliminating negative impacts (Zero) while actively restoring and transforming (Restore and Transform) ecosystems and the lives of communities. Anchored in industry-leading certifications and compliance with global regulations, including the European Union Deforestation Regulation (EUDR), Beyond Zero serves as SDG’s blueprint for a regenerative and ethical palm oil industry.
The Beyond Zero framework goes beyond a collection of corporate sustainability commitments — it is a transformational shift in the way palm oil is cultivated and processed. Its key focus areas include:
Science-based climate action: SDG is the first palm oil company globally to have its emissions reduction targets verified by the Science Based Targets initiative (SBTi).
Regenerative agriculture: The company is piloting a regenerative agriculture framework to enhance soil health and carbon sequestration efforts while reducing dependence on chemicals.
Biodiversity and conservation: With 45,000ha already set aside for conservation and over 2.7 million trees planted since 2009, SDG is leading large-scale reforestation efforts.
Empowering smallholders: By 2035, SDG aims to support 50,000 smallholders with training, certification and market access, including access to the EU. SDG delivered its first fully EUDR-compliant shipment, which included oil from 17,357 smallholders in its supply chain from Papua New Guinea and the Solomon Islands.
As SDG advances its sustainability journey, its initiatives not only set industry standards but also establish the company as a low-risk, future-proof investment.
Translating Sustainability into Market Value
While SDG sets the industry standard in sustainability, its downstream arm, SD Guthrie International (SDGI), is responsible for translating these commitments into tangible market advantages. Through its Not All Palm Oil Is Created Equal campaign, SDGI is reshaping perceptions around sustainable palm oil and reinforcing its differentiation in the marketplace. The EdgeMY
--------
A 14-fold jump in soyabean oil imports from Nepal triggers red flags in India
With a 19 per cent overall surge in the April to November 2024 period to nearly $3 billion compared to $2.5 billion in 2023. However, during the comparable period, Brazil — one of the top producers of the commodity — registered a drop in exports.
Soyabean oil imports saw a sharp 14-fold surge from neighbouring Nepal during the April to November period in 2024 compared to the previous year, even as Kathmandu remains a marginal producer of the commodity, an analysis of data from the Commerce and Industry Ministry has shown.
This comes as overall soyabean oil imports in India are showing a rising trend, with a 19 per cent overall surge in the April to November 2024 period to nearly $3 billion compared to $2.5 billion in 2023. However, during the comparable period, Brazil — one of the top producers of the commodity — registered a drop in exports.
The import surge has triggered some concerns in India’s policy circles, with trade experts maintaining that the trend could be a result of the possible flouting of rules of origin by Nepal and the tariff arbitrage that the country enjoys due to zero-duty access for its products into India under the Nepal-India Treaty of Trade signed in 2009.
Data suggests that there is over 30 per cent tariff advantage that Nepal enjoys
“A number of Customs officials have visited Nepal in the last seven years to check breaches of the rules of origin. Nepalese industries, which are primarily composed of Indian businesses, have set up refining industries there, but the low Nepalese consumption vis-à-vis its imports suggests that the industry largely exists to take advantage of the FTA duty structure with India,” a person aware of the issue said.
Notably, refined palm oil, refined soya oil, and refined sunflower oil attract a duty as high as 35.75 per cent.
New Delhi had raised the basic customs duty on these items by 20 per cent in September last year to protect Indian oil seed farmers. The duty prior to the change was still high at 13.75 per cent. Indian Express
--------
EU plans Donald Trump-style import ban on food
Brussels wants to block farm products containing prohibited pesticides
The EU wants to block imports of certain foodstuffs made to different standards to protect its farmers in an echo of US President Donald Trump’s “reciprocal” trade policy.
The European Commission will agree next week to explore greater import limits, according to three officials, a move that would raise tensions with trading partners. Early targets could include US crops such as soyabeans which are grown using pesticides EU farmers are not allowed to use.
“We have very clear signals from the parliament, very clear signals also from the member states and from our farmers: whatever is banned in the EU, it should be banned in the EU, even if it is an imported product,” health commissioner Olivér Várhelyi said in an interview last month.
Trump on Thursday attacked countries that blocked US products, including the EU, which he said barred shellfish from 48 of the US’s 50 states. He has threatened tariffs on those who do not change their policy.
The commission has long opposed calls from France and other member states for reciprocal treatment, arguing that it could be in breach of WTO rules. The body only allows restrictions on scientific grounds that do not discriminate against imports.
The EU bans many pesticides because they damage plants or animals — even as its health agency has ruled that some are safe to ingest at low levels.
The EU plan is included in a Vision for Agriculture road map drawn up by farm commissioner Christophe Hansen. An official with knowledge of the document plans said it referenced the need to abide by international rules.
“We are only talking about the most hazardous pesticides and there will be an impact assessment to protect competitiveness before any decisions,” one official said, adding that “we need coffee and mangoes and avocados”.
Várhelyi said pesticides using carcinogens, mutagens or endocrine disrupters should not be allowed into the bloc on imported food.
“If science says it is not safe, then we shouldn’t have it. If we want to be scientifically based, then science is universal. So we have to make sure whatever is imported complies with this.”
One such substance is paraquat, a herbicide banned in the EU but used in the US on crops including soyabeans.
Pesticide Action Network Europe, a campaign group, found pesticides such as the fungicide propiconazole and bee-killing neurotoxic insecticides in many imports, according to a report it published earlier this month.
“These substances often appear in ‘pesticide cocktail’ mixtures, and in some cases, their levels exceed the established legal residue limits for individual pesticides,” the group said. “Higher allowed residue limits are often maintained to accommodate international trade partners, jeopardising the health of European citizens.” FT
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Indonesian Minister Hartarto stresses urgent need to wrap up CEPA talks with EU
Jakarta (ANTARA) - Coordinating Minister for Economic Affairs, Airlangga Hartarto, has reiterated Indonesia's commitment to promptly completing negotiations on its comprehensive economic partnership agreement (CEPA) with the European Union.
"There is an urgency for Indonesia and the European Union to immediately complete the negotiation process, which will present a new opportunity for Indonesia and EU member states to increase trade and investment volumes," he said during a virtual meeting with EU Trade Commissioner Maros Sefcovic.
Although there are several remaining issues in the negotiation process, Hartarto said that Indonesia will not limit opportunities for investment.
"With the completion of the IEU-CEPA, Indonesia hopes to invite investors from the EU to explore the market in Indonesia," he added.
With the signing of the IEU-CEPA, it is hoped that economic cooperation between Indonesia and the EU will grow closer, providing mutual benefits for both parties as they face increasingly dynamic global challenges.
Meanwhile, Commissioner Sefcovic emphasized the importance of maintaining momentum in discussing a realistic timeframe for completing the IEU-CEPA negotiations that is acceptable to both parties.
He said that the differing market and economic structures of the EU and Indonesia could open up additional market opportunities.
"Global trade conditions marked by tariff wars require an appropriate mitigation strategy to ensure the smooth flow of trade and investment between Indonesia and the EU," he added.
In this regard, the EU bloc also expressed its commitment to complete the IEU-CEPA negotiations in the first half of 2025.
Nineteen rounds of the IEU-CEPA negotiations have been carried out over the last nine years. Antara News
February 15, 2025
Indonesia Advances to B40 Biodiesel with 40% Palm Oil Blend
By: Asia Business Outlook Team | Saturday, 15 February 2025
After some delays at the beginning of the year, Indonesia anticipates that its B40 biodiesel program will be fully implemented next month, according to Eniya Listiani Dewi, an official in the energy ministry.
As of Friday, the amount of palm oil-based biodiesel distributed this year was around 1.2 million kiloliters, Eniya Listiani Dewi said.
The percentage of biodiesel that is made from palm oil has increased from 35 percent (B35), which was the previous level that was enforced in January 2023, to 40 percent (B40) in the B40 stage of the biodiesel program. Conventional diesel makes up the remaining 60% of the blend.
Fuel distributors were allowed till the end of February as a transition time since Indonesia had intended to debut on January 1st but encountered some delays because of regulatory concerns.Eniya stated that the changeover period would not be extended.
Indonesia, the world's biggest palm oil producer, has allocated 15.6 million KL of biodiesel for distribution in 2025. Asia Business Outlook
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Malaysia Will Crack Down on Fraud in Used Cooking Oil Exports, Official Says
TEMPO.CO, Jakarta - Malaysia will crack down on fraud in the used cooking oil industry, its deputy commodities minister told Reuters, as western governments investigate whether shipments of the biofuels feedstock from Asia actually contain virgin oil.
The Malaysian Palm Oil Board (MPOB) is reviewing its standards and policies governing used cooking oil (UCO) and palm industry waste known as sludge palm oil (SPO) to better distinguish them in order to prevent discrepancies in exports, said Deputy Plantation and Commodities Minister Chan Foong Hin.
"The government is also strengthening enforcement mechanisms to uphold industry credibility and Malaysia's reputation as a responsible exporter,” he said in an interview on Thursday, adding that complaints from buyers could endanger the country's status as a credible UCO exporter.
He said ensuring that the entire supply chain is traceable would combat fraudulent practices.
"Basically the centre of this issue is the traceability. How do you make the whole supply chain traceable?", Chan said.
The European biodiesel industry last year complained of a surge in imports from China it believes involve supplies declared as made with recycled oil and fat but actually produced with cheaper and less sustainable virgin oil.
Neighboring Indonesia, the world's biggest palm oil producer, last month moved to curb exports of UCO and palm oil residue, saying that shipments in recent years had exceeded production capacity, indicating virgin crude palm oil (CPO) had been mixed in.
In August, the U.S. Environmental Protection Agency said it launched investigations into the supply chains of at least two renewable fuel producers, without naming the companies, amid industry concerns that some may be using fraudulent biodiesel feedstocks to secure lucrative government subsidies.
DEFORESTATION RULES
Malaysia's palm industry, the world's second-largest, should not view the EU's looming deforestation regulation negatively as the country is committed to anti-deforestation, Chan said.
About 87% of Malaysia’s palm oil plantations are sustainably certified through the Malaysian Sustainable Palm Oil (MSPO) standards, Chan said.
“In fact, we are ready,” he said.
In December, the EU approved a one-year delay to the landmark deforestation law requiring importers of soy, beef, cocoa, coffee, palm oil, timber, rubber and related products to prove their supply chains do not contribute to the destruction of the world's forests, or face hefty fines.
Chan downplayed a downturn in shipments to top palm oil buyer India, which hit a 14-year low in January, as a “short term" situation given the demand needs of its 1.45 billion population.
India imported 3.03 million metric tons of Malaysian palm oil in 2024, up 6.5%.
"The permanent factor is the population. So yes, we are still optimistic," Chan said. Tempo.co
Indonesia Advances to B40 Biodiesel with 40% Palm Oil Blend
By: Asia Business Outlook Team | Saturday, 15 February 2025
After some delays at the beginning of the year, Indonesia anticipates that its B40 biodiesel program will be fully implemented next month, according to Eniya Listiani Dewi, an official in the energy ministry.
As of Friday, the amount of palm oil-based biodiesel distributed this year was around 1.2 million kiloliters, Eniya Listiani Dewi said.
The percentage of biodiesel that is made from palm oil has increased from 35 percent (B35), which was the previous level that was enforced in January 2023, to 40 percent (B40) in the B40 stage of the biodiesel program. Conventional diesel makes up the remaining 60% of the blend.
Fuel distributors were allowed till the end of February as a transition time since Indonesia had intended to debut on January 1st but encountered some delays because of regulatory concerns.Eniya stated that the changeover period would not be extended.
Indonesia, the world's biggest palm oil producer, has allocated 15.6 million KL of biodiesel for distribution in 2025. Asia Business Outlook
--------
Malaysia Will Crack Down on Fraud in Used Cooking Oil Exports, Official Says
TEMPO.CO, Jakarta - Malaysia will crack down on fraud in the used cooking oil industry, its deputy commodities minister told Reuters, as western governments investigate whether shipments of the biofuels feedstock from Asia actually contain virgin oil.
The Malaysian Palm Oil Board (MPOB) is reviewing its standards and policies governing used cooking oil (UCO) and palm industry waste known as sludge palm oil (SPO) to better distinguish them in order to prevent discrepancies in exports, said Deputy Plantation and Commodities Minister Chan Foong Hin.
"The government is also strengthening enforcement mechanisms to uphold industry credibility and Malaysia's reputation as a responsible exporter,” he said in an interview on Thursday, adding that complaints from buyers could endanger the country's status as a credible UCO exporter.
He said ensuring that the entire supply chain is traceable would combat fraudulent practices.
"Basically the centre of this issue is the traceability. How do you make the whole supply chain traceable?", Chan said.
The European biodiesel industry last year complained of a surge in imports from China it believes involve supplies declared as made with recycled oil and fat but actually produced with cheaper and less sustainable virgin oil.
Neighboring Indonesia, the world's biggest palm oil producer, last month moved to curb exports of UCO and palm oil residue, saying that shipments in recent years had exceeded production capacity, indicating virgin crude palm oil (CPO) had been mixed in.
In August, the U.S. Environmental Protection Agency said it launched investigations into the supply chains of at least two renewable fuel producers, without naming the companies, amid industry concerns that some may be using fraudulent biodiesel feedstocks to secure lucrative government subsidies.
DEFORESTATION RULES
Malaysia's palm industry, the world's second-largest, should not view the EU's looming deforestation regulation negatively as the country is committed to anti-deforestation, Chan said.
About 87% of Malaysia’s palm oil plantations are sustainably certified through the Malaysian Sustainable Palm Oil (MSPO) standards, Chan said.
“In fact, we are ready,” he said.
In December, the EU approved a one-year delay to the landmark deforestation law requiring importers of soy, beef, cocoa, coffee, palm oil, timber, rubber and related products to prove their supply chains do not contribute to the destruction of the world's forests, or face hefty fines.
Chan downplayed a downturn in shipments to top palm oil buyer India, which hit a 14-year low in January, as a “short term" situation given the demand needs of its 1.45 billion population.
India imported 3.03 million metric tons of Malaysian palm oil in 2024, up 6.5%.
"The permanent factor is the population. So yes, we are still optimistic," Chan said. Tempo.co
February 14, 2025
Exclusive: Malaysia will crack down on fraud in used cooking oil exports, official says
By Ashley Tang
KUALA LUMPUR, Feb 14 (Reuters) - Malaysia will crack down on fraud in the used cooking oil industry, its deputy commodities minister told Reuters, as western governments investigate whether shipments of the biofuels feedstock from Asia actually contain virgin oil.
The Malaysian Palm Oil Board (MPOB) is reviewing its standards and policies governing used cooking oil (UCO) and palm industry waste known as sludge palm oil (SPO) to better distinguish them in order to prevent discrepancies in exports, said Deputy Plantation and Commodities Minister Chan Foong Hin.
"The government is also strengthening enforcement mechanisms to uphold industry credibility and Malaysia's reputation as a responsible exporter,” he said in an interview on Thursday, adding that complaints from buyers could endanger the country's status as a credible UCO exporter.
He said ensuring that the entire supply chain is traceable would combat fraudulent practices.
"Basically the centre of this issue is the traceability. How do you make the whole supply chain traceable?", Chan said.
The European biodiesel industry last year complained of a surge in imports from China it believes involve supplies declared as made with recycled oil and fat but actually produced with cheaper and less sustainable virgin oil. Reuters
--------
Indonesia expects to reach full implementation of B40 biodiesel in March
By Bernadette Christina
JAKARTA, Feb 14 (Reuters) - Indonesia expects its B40 biodiesel programme, aimed at reducing its reliance on imported diesel fuel, will reach full implementation next month after delays at the start of the year, energy ministry official Eniya Listiani Dewi said on Friday.
She said distribution of the palm oil-based biodiesel this year has reached around 1.2 million kilolitres as of Friday.
Indonesia had planned to launch the mandatory B40 mix, containing 40% of palm oil fuel, from January 1 but faced some delays due to regulatory issues and so fuel distributors were given until the end of February as a transition period.
The blending previously contained 35% palm oil. Eniya said there will be no extension to the transition period. "I think that everybody is making efforts to meet it," she told reporters.
The implementation of Indonesia's higher mandatory biodiesel blend is closely watched by palm oil market participants as they gauge how the demand from the energy sector may affect Indonesia's palm oil exports.
Indonesia, the world's biggest palm oil producer, has allocated 15.6 million KL of biodiesel for distribution in 2025, up from around 13 million KL last year. Reuters
--------
Indonesia’s Palm Oil at Risk as Rising Temperatures Kill Pollinating Beetles
Denpasar. Climate change is putting the future of palm oil production at risk, as extreme heat threatens the survival of Elaeidobius kamerunicus, the primary pollinating beetle for oil palm. A recent study presented at the International Conference on Oil Palm & Environment (ICOPE) 2025 in Bali reveals the impact of rising temperatures on these crucial insects.
Mohammad Naim, head of the Plant Protection Department at SMART Research Institute, warned that prolonged heat waves could disrupt the beetle’s life cycle, reducing its ability to pollinate oil palm trees efficiently.
"Elaeidobius kamerunicus has incredible potential to improve pollination efficiency, but climate change could undermine it all," he said during ICOPE 2025 at the Bali Beach Convention on Thursday.
According to Naim, pollination costs currently stand at Rp 1.8 billion ($110,000) per hectare. While E. kamerunicus has been a cost-effective solution, extreme heat could force plantations to seek alternative—and likely more expensive—methods. Jakarta Globe
--------
MSPO 2.0 certification meets EUDR requirements, says CEO Mohamed Hafizin Mohamed Tajudin
PUTRAJAYA (Feb 13): The Malaysian Sustainable Palm Oil (MSPO) 2.0 certification is fully capable of meeting the requirements set by the European Union Deforestation Regulation (EUDR), said MSPO chief executive officer (CEO) Mohamed Hafizin Mohamed Tajudin.
Speaking at a media briefing on MSPO 2.0 here, he said the EUDR mandates compliance with four key elements — land legality, labour treatment, traceability, and no deforestation — all of which are already embedded within the MSPO certification framework.
“For example, on the issue of deforestation, the EUDR stipulates that land must not be deforested after Dec 31, 2020. However, MSPO has an even stricter requirement, where land must not be deforested after Dec 31, 2019, to qualify for certification,” he said.
Mohamed Hafizin also highlighted that land ownership is a fundamental criterion for MSPO certification and that those without legitimate land titles will not be eligible to obtain MSPO certification.
Regarding labour treatment, he said MSPO incorporates a social impact assessment, ensuring that certified entities adhere to proper labour standards.
Regarding traceability, Mohamed Hafizin acknowledged that it had previously been a voluntary requirement under the 2013 standard. However, under the revised MSPO 2022 standard, traceability has become mandatory.
“This gives us strong confidence that any entity certified under MSPO 2.0 can meet the EUDR requirements,” he said.
Illustrating the effectiveness of MSPO 2.0 certification, he said a company looking to sell palm oil to European buyers can present its fully MSPO-certified supply chain as proof of compliance. The EdgeMY
Exclusive: Malaysia will crack down on fraud in used cooking oil exports, official says
By Ashley Tang
KUALA LUMPUR, Feb 14 (Reuters) - Malaysia will crack down on fraud in the used cooking oil industry, its deputy commodities minister told Reuters, as western governments investigate whether shipments of the biofuels feedstock from Asia actually contain virgin oil.
The Malaysian Palm Oil Board (MPOB) is reviewing its standards and policies governing used cooking oil (UCO) and palm industry waste known as sludge palm oil (SPO) to better distinguish them in order to prevent discrepancies in exports, said Deputy Plantation and Commodities Minister Chan Foong Hin.
"The government is also strengthening enforcement mechanisms to uphold industry credibility and Malaysia's reputation as a responsible exporter,” he said in an interview on Thursday, adding that complaints from buyers could endanger the country's status as a credible UCO exporter.
He said ensuring that the entire supply chain is traceable would combat fraudulent practices.
"Basically the centre of this issue is the traceability. How do you make the whole supply chain traceable?", Chan said.
The European biodiesel industry last year complained of a surge in imports from China it believes involve supplies declared as made with recycled oil and fat but actually produced with cheaper and less sustainable virgin oil. Reuters
--------
Indonesia expects to reach full implementation of B40 biodiesel in March
By Bernadette Christina
JAKARTA, Feb 14 (Reuters) - Indonesia expects its B40 biodiesel programme, aimed at reducing its reliance on imported diesel fuel, will reach full implementation next month after delays at the start of the year, energy ministry official Eniya Listiani Dewi said on Friday.
She said distribution of the palm oil-based biodiesel this year has reached around 1.2 million kilolitres as of Friday.
Indonesia had planned to launch the mandatory B40 mix, containing 40% of palm oil fuel, from January 1 but faced some delays due to regulatory issues and so fuel distributors were given until the end of February as a transition period.
The blending previously contained 35% palm oil. Eniya said there will be no extension to the transition period. "I think that everybody is making efforts to meet it," she told reporters.
The implementation of Indonesia's higher mandatory biodiesel blend is closely watched by palm oil market participants as they gauge how the demand from the energy sector may affect Indonesia's palm oil exports.
Indonesia, the world's biggest palm oil producer, has allocated 15.6 million KL of biodiesel for distribution in 2025, up from around 13 million KL last year. Reuters
--------
Indonesia’s Palm Oil at Risk as Rising Temperatures Kill Pollinating Beetles
Denpasar. Climate change is putting the future of palm oil production at risk, as extreme heat threatens the survival of Elaeidobius kamerunicus, the primary pollinating beetle for oil palm. A recent study presented at the International Conference on Oil Palm & Environment (ICOPE) 2025 in Bali reveals the impact of rising temperatures on these crucial insects.
Mohammad Naim, head of the Plant Protection Department at SMART Research Institute, warned that prolonged heat waves could disrupt the beetle’s life cycle, reducing its ability to pollinate oil palm trees efficiently.
"Elaeidobius kamerunicus has incredible potential to improve pollination efficiency, but climate change could undermine it all," he said during ICOPE 2025 at the Bali Beach Convention on Thursday.
According to Naim, pollination costs currently stand at Rp 1.8 billion ($110,000) per hectare. While E. kamerunicus has been a cost-effective solution, extreme heat could force plantations to seek alternative—and likely more expensive—methods. Jakarta Globe
--------
MSPO 2.0 certification meets EUDR requirements, says CEO Mohamed Hafizin Mohamed Tajudin
PUTRAJAYA (Feb 13): The Malaysian Sustainable Palm Oil (MSPO) 2.0 certification is fully capable of meeting the requirements set by the European Union Deforestation Regulation (EUDR), said MSPO chief executive officer (CEO) Mohamed Hafizin Mohamed Tajudin.
Speaking at a media briefing on MSPO 2.0 here, he said the EUDR mandates compliance with four key elements — land legality, labour treatment, traceability, and no deforestation — all of which are already embedded within the MSPO certification framework.
“For example, on the issue of deforestation, the EUDR stipulates that land must not be deforested after Dec 31, 2020. However, MSPO has an even stricter requirement, where land must not be deforested after Dec 31, 2019, to qualify for certification,” he said.
Mohamed Hafizin also highlighted that land ownership is a fundamental criterion for MSPO certification and that those without legitimate land titles will not be eligible to obtain MSPO certification.
Regarding labour treatment, he said MSPO incorporates a social impact assessment, ensuring that certified entities adhere to proper labour standards.
Regarding traceability, Mohamed Hafizin acknowledged that it had previously been a voluntary requirement under the 2013 standard. However, under the revised MSPO 2022 standard, traceability has become mandatory.
“This gives us strong confidence that any entity certified under MSPO 2.0 can meet the EUDR requirements,” he said.
Illustrating the effectiveness of MSPO 2.0 certification, he said a company looking to sell palm oil to European buyers can present its fully MSPO-certified supply chain as proof of compliance. The EdgeMY
February 13, 2025
Indonesia focuses on global partnerships for economic growth
Jakarta (ANTARA) - Coordinating Minister for Economic Affairs Airlangga Hartarto echoed Indonesia's steadfast commitment to fostering collaboration with international parties to achieve sustainable and robust economic growth.
"Indonesia prioritizes efforts to establish quality partnerships with all parties in a bid to realize solid economic growth," the minister remarked at the World Governments Summit 2025 in Dubai, the United Arab Emirates, on Wednesday (February 12).
As revealed in his ministry's statement here on Thursday, Hartarto highlighted Indonesia's gross domestic product of USD1.4 trillion and 280 million population, viewing these factors as valuable assets for Indonesia to pursue highly beneficial cooperation within international platforms.
In this regard, he mentioned the Association of Southeast Asian Nations (ASEAN) and the Gulf Cooperation Council (GCC).
The minister stated that Indonesia recognizes these multinational platforms as new potential economic blocs, aligning seamlessly with the theme of the panel discussion in which he spoke, titled "The Emergence of Multiple Economic Blocs."
According to Hartarto, the emergence of these economic blocs is a direct consequence of rising global tensions and their effects on trade, investment, and geopolitical stability.
Specifying the ASEAN, Hartarto underscored that Indonesia believes that the regional association plays the vital role of a buffer, shielding its member states from the economic fallout of the United States-China trade war.
He also expressed optimism regarding progress in the ongoing discussions about the free trade agreement between Indonesia and the GCC.
The official voiced Indonesia's keenness to cooperate with Gulf states in critical sectors, such as energy, finance, and infrastructure.
"Indonesia's cooperation with Gulf countries is expected to help the Southeast Asian nation solidify its position in global trade, infrastructure financing, and technology collaboration. These factors are essential for Indonesia to achieve its eight percent economic growth target," he concluded.
Hartarto made these statements in the presence of the UAE Minister of Economy Abdulla Bin Touq, Turkish Finance Minister Mehmet Simsek, and Saudi Arabian Economy and Planning Minister Faisal Alibrahim. Antara News
--------
ICOPE 2025: Government Urges Sustainable Palm Oil Practices to Curb Deforestation
Denpasar. Indonesia, the world’s top palm oil producer, is striving to balance economic growth with environmental sustainability amid rising deforestation linked to the industry. Speaking at the International Conference on Oil Palm and Environment (ICOPE 2025) in Bali, a senior Forestry Ministry official called for integrating palm oil cultivation with forest conservation to ensure long-term sustainability.
“Oil palm cultivation must embrace a more holistic approach by integrating with natural ecosystems,” said M. Saparis Soedarjanto, Secretary of the Directorate General of Sustainable Forest Management. He outlined strategies such as agroforestry systems, wildlife corridors, and sustainable land-use planning to mitigate deforestation and biodiversity loss.
Indonesia is home to one of the world's largest and most significant forest ecosystems, ranking third globally in rainforest extent and second in biodiversity. Over 65 percent of the nation's landmass—more than 125 million hectares—is designated as National Forest Areas, including production, protection, and conservation forests under the jurisdiction of the Forestry Ministry.
Although Indonesia’s deforestation rate has declined in recent years, forest loss remains a pressing issue. Official data shows that 30,000 hectares of rainforest were cleared for oil palm plantations in 2023, up from 22,000 hectares in 2022. However, Indonesia’s net deforestation rate dropped to 104,000 hectares between 2021-2022, down from 113,500 hectares in 2020-2021.
Palm oil plantations now cover an estimated 17 million hectares across Indonesia, according to WWF-Indonesia, raising concerns over biodiversity loss and climate impact. To address these concerns, the Forestry Ministry has called for the integration of High Conservation Value Forests (HCVF) within palm oil landscapes, ensuring that economic benefits do not come at the cost of environmental degradation.
“Oil palm cultivation has been a major land use in Indonesia for decades. Agroecological approaches must consider landscape stability and natural resource sustainability to ensure that palm oil development supports economic, social, and environmental balance,” Saparis said.
Economic Significance vs. Environmental Impact
The palm oil industry is a key driver of Indonesia’s economy, contributing 1.69 percent to GDP in the plantation sector as of Q3 2024. The sector supports 16 million workers and involves 2.4 million independent farmers, according to the Palm Oil Fund Management Agency (BPDPKS).
Despite its economic benefits, the industry faces pressure to adopt greener practices. Indonesia’s historical deforestation peaked between 1996-2000 at 3.5 million hectares per year, though recent years have seen a slowdown. Conservationists argue that while the decline in deforestation is promising, the expansion of plantations remains a threat to forests, wildlife, and climate goals.
The government is urging palm oil companies to implement stricter sustainability measures through better land management, conservation initiatives, and compliance with environmental regulations. The integration of forests with oil palm plantations is seen as a potential solution to balance economic growth with nature conservation.
“Integration of forestry and oil-palm business entities is not only a strategic choice but absolutely needed,” Saparis said. Jakarta Globe
--------
Indonesia stresses sustainable palm oil for food, energy security
Denpasar, Bali (ANTARA) - Indonesia's Deputy Minister of Agriculture, Sudaryono, has emphasized the need to improve sustainable palm oil productivity to support the government's priority programs, particularly food and energy self-sufficiency, as well as natural resource downstreaming.
"The government wants our palm oil to be sustainable," he said after the opening of the International Conference on Palm Oil and the Environment (ICOPE) 2025 in Bali on Wednesday.
He stated that palm oil productivity can be increased through land intensification and the use of superior seeds.
He added that if necessary, land expansion would be conducted without leading to deforestation. This can be achieved through comprehensive studies and the implementation of sustainable practices to prevent environmental damage.
In addition, oil palm replanting, which incorporates the intercropping method involving the planting of upland rice or corn, is suitable for dry land.
Sudaryono welcomed ICOPE 2025 as a forum to discuss palm oil research on various aspects, including seeds, fertilizers, climate change, and technology, as well as artificial intelligence (AI) to support increased palm oil productivity.
"Of course, this is beneficial for Indonesia because 58 percent of the world's palm oil supply comes from our country," he pointed out.
He noted that palm oil productivity can support natural resource downstreaming and food security, including the priority program for free nutritious meals. The free meals program targets school students, pregnant women, and breastfeeding mothers.
It can also contribute to energy self-sufficiency through the mandatory 40 percent biodiesel (B40) program, which aims to reduce dependence on fossil fuels.
Meanwhile, Dewi Lestari Yani Rizki, Director of Conservation at WWF Indonesia, emphasized that the palm oil industry must seriously implement sustainable practices to meet global market challenges.
This is expected to help the Indonesian government reduce carbon emissions and preserve biodiversity.
"We believe that the palm oil industry can transform into a sustainable business in the future," Dewi said.
Chairperson and CEO of Sinar Mas Agribusiness and Food, Franky Oesman Widjaja, stressed that sustainable innovation and synergy between the government, business actors, and communities are vital to securing the future of the palm oil industry.
He expressed hope that the conference will bring concrete results and position the palm oil industry as part of the global solution to climate and environmental challenges.
"We are committed to implementing best practices in sustainable agriculture, as well as protecting biodiversity and the surrounding ecosystem," he said.
This year, ICOPE is taking place in Sanur, Bali, from February 12 to 14, with participants from Indonesia, India, the Netherlands, France, Malaysia, the United Kingdom, Finland, Colombia, and Spain.
The conference serves as a platform to formulate a sustainable transformation for the palm oil industry. Antara News
--------
Draft Commission farm vision promises tough trade rules on pesticides, livestock
The pledges echo growing rhetoric from EU farm chief Christophe Hansen and Health and Animal Welfare Commissioner Olivér Várhelyi.
A draft of the Commission’s vision for the EU agri-food sector strikes a tough stance on food trade and vows to impose stricter standards on third countries when it comes to pesticides and animal welfare.
In 2025, the EU executive wants to present an ambitious plan to strengthen reciprocity in production standards, according to a draft roadmap for the EU and food set to be unveiled on 19 February and seen by Euractiv.
According to sources familiar with the issue, the part on trade standards is the one that is raising more eyebrows in the Commission's ongoing internal discussion, as it would mean striking a new balance at a time when the EU executive is trying to expand its network of trade partnerships.
“The Commission will pursue, in line with international rules, a stronger alignment of production standards applied to imported products, notably on pesticides and animal welfare,” the text reads.
The Commission promises to ensure that the most hazardous pesticides banned in the EU “are not allowed back” via imports. It also vows to prevent banned substances from being produced in the bloc for export elsewhere.
The pledges echo growing rhetoric from EU farm chief Christophe Hansen and Health and Animal Welfare Commissioner Olivér Várhelyi, who have recently signalled a tougher approach to production standards for imported food. EU agriculture ministers joined the push last month, urging the EU executive to crack down on imports containing residues of banned pesticides. Euractiv
Indonesia focuses on global partnerships for economic growth
Jakarta (ANTARA) - Coordinating Minister for Economic Affairs Airlangga Hartarto echoed Indonesia's steadfast commitment to fostering collaboration with international parties to achieve sustainable and robust economic growth.
"Indonesia prioritizes efforts to establish quality partnerships with all parties in a bid to realize solid economic growth," the minister remarked at the World Governments Summit 2025 in Dubai, the United Arab Emirates, on Wednesday (February 12).
As revealed in his ministry's statement here on Thursday, Hartarto highlighted Indonesia's gross domestic product of USD1.4 trillion and 280 million population, viewing these factors as valuable assets for Indonesia to pursue highly beneficial cooperation within international platforms.
In this regard, he mentioned the Association of Southeast Asian Nations (ASEAN) and the Gulf Cooperation Council (GCC).
The minister stated that Indonesia recognizes these multinational platforms as new potential economic blocs, aligning seamlessly with the theme of the panel discussion in which he spoke, titled "The Emergence of Multiple Economic Blocs."
According to Hartarto, the emergence of these economic blocs is a direct consequence of rising global tensions and their effects on trade, investment, and geopolitical stability.
Specifying the ASEAN, Hartarto underscored that Indonesia believes that the regional association plays the vital role of a buffer, shielding its member states from the economic fallout of the United States-China trade war.
He also expressed optimism regarding progress in the ongoing discussions about the free trade agreement between Indonesia and the GCC.
The official voiced Indonesia's keenness to cooperate with Gulf states in critical sectors, such as energy, finance, and infrastructure.
"Indonesia's cooperation with Gulf countries is expected to help the Southeast Asian nation solidify its position in global trade, infrastructure financing, and technology collaboration. These factors are essential for Indonesia to achieve its eight percent economic growth target," he concluded.
Hartarto made these statements in the presence of the UAE Minister of Economy Abdulla Bin Touq, Turkish Finance Minister Mehmet Simsek, and Saudi Arabian Economy and Planning Minister Faisal Alibrahim. Antara News
--------
ICOPE 2025: Government Urges Sustainable Palm Oil Practices to Curb Deforestation
Denpasar. Indonesia, the world’s top palm oil producer, is striving to balance economic growth with environmental sustainability amid rising deforestation linked to the industry. Speaking at the International Conference on Oil Palm and Environment (ICOPE 2025) in Bali, a senior Forestry Ministry official called for integrating palm oil cultivation with forest conservation to ensure long-term sustainability.
“Oil palm cultivation must embrace a more holistic approach by integrating with natural ecosystems,” said M. Saparis Soedarjanto, Secretary of the Directorate General of Sustainable Forest Management. He outlined strategies such as agroforestry systems, wildlife corridors, and sustainable land-use planning to mitigate deforestation and biodiversity loss.
Indonesia is home to one of the world's largest and most significant forest ecosystems, ranking third globally in rainforest extent and second in biodiversity. Over 65 percent of the nation's landmass—more than 125 million hectares—is designated as National Forest Areas, including production, protection, and conservation forests under the jurisdiction of the Forestry Ministry.
Although Indonesia’s deforestation rate has declined in recent years, forest loss remains a pressing issue. Official data shows that 30,000 hectares of rainforest were cleared for oil palm plantations in 2023, up from 22,000 hectares in 2022. However, Indonesia’s net deforestation rate dropped to 104,000 hectares between 2021-2022, down from 113,500 hectares in 2020-2021.
Palm oil plantations now cover an estimated 17 million hectares across Indonesia, according to WWF-Indonesia, raising concerns over biodiversity loss and climate impact. To address these concerns, the Forestry Ministry has called for the integration of High Conservation Value Forests (HCVF) within palm oil landscapes, ensuring that economic benefits do not come at the cost of environmental degradation.
“Oil palm cultivation has been a major land use in Indonesia for decades. Agroecological approaches must consider landscape stability and natural resource sustainability to ensure that palm oil development supports economic, social, and environmental balance,” Saparis said.
Economic Significance vs. Environmental Impact
The palm oil industry is a key driver of Indonesia’s economy, contributing 1.69 percent to GDP in the plantation sector as of Q3 2024. The sector supports 16 million workers and involves 2.4 million independent farmers, according to the Palm Oil Fund Management Agency (BPDPKS).
Despite its economic benefits, the industry faces pressure to adopt greener practices. Indonesia’s historical deforestation peaked between 1996-2000 at 3.5 million hectares per year, though recent years have seen a slowdown. Conservationists argue that while the decline in deforestation is promising, the expansion of plantations remains a threat to forests, wildlife, and climate goals.
The government is urging palm oil companies to implement stricter sustainability measures through better land management, conservation initiatives, and compliance with environmental regulations. The integration of forests with oil palm plantations is seen as a potential solution to balance economic growth with nature conservation.
“Integration of forestry and oil-palm business entities is not only a strategic choice but absolutely needed,” Saparis said. Jakarta Globe
--------
Indonesia stresses sustainable palm oil for food, energy security
Denpasar, Bali (ANTARA) - Indonesia's Deputy Minister of Agriculture, Sudaryono, has emphasized the need to improve sustainable palm oil productivity to support the government's priority programs, particularly food and energy self-sufficiency, as well as natural resource downstreaming.
"The government wants our palm oil to be sustainable," he said after the opening of the International Conference on Palm Oil and the Environment (ICOPE) 2025 in Bali on Wednesday.
He stated that palm oil productivity can be increased through land intensification and the use of superior seeds.
He added that if necessary, land expansion would be conducted without leading to deforestation. This can be achieved through comprehensive studies and the implementation of sustainable practices to prevent environmental damage.
In addition, oil palm replanting, which incorporates the intercropping method involving the planting of upland rice or corn, is suitable for dry land.
Sudaryono welcomed ICOPE 2025 as a forum to discuss palm oil research on various aspects, including seeds, fertilizers, climate change, and technology, as well as artificial intelligence (AI) to support increased palm oil productivity.
"Of course, this is beneficial for Indonesia because 58 percent of the world's palm oil supply comes from our country," he pointed out.
He noted that palm oil productivity can support natural resource downstreaming and food security, including the priority program for free nutritious meals. The free meals program targets school students, pregnant women, and breastfeeding mothers.
It can also contribute to energy self-sufficiency through the mandatory 40 percent biodiesel (B40) program, which aims to reduce dependence on fossil fuels.
Meanwhile, Dewi Lestari Yani Rizki, Director of Conservation at WWF Indonesia, emphasized that the palm oil industry must seriously implement sustainable practices to meet global market challenges.
This is expected to help the Indonesian government reduce carbon emissions and preserve biodiversity.
"We believe that the palm oil industry can transform into a sustainable business in the future," Dewi said.
Chairperson and CEO of Sinar Mas Agribusiness and Food, Franky Oesman Widjaja, stressed that sustainable innovation and synergy between the government, business actors, and communities are vital to securing the future of the palm oil industry.
He expressed hope that the conference will bring concrete results and position the palm oil industry as part of the global solution to climate and environmental challenges.
"We are committed to implementing best practices in sustainable agriculture, as well as protecting biodiversity and the surrounding ecosystem," he said.
This year, ICOPE is taking place in Sanur, Bali, from February 12 to 14, with participants from Indonesia, India, the Netherlands, France, Malaysia, the United Kingdom, Finland, Colombia, and Spain.
The conference serves as a platform to formulate a sustainable transformation for the palm oil industry. Antara News
--------
Draft Commission farm vision promises tough trade rules on pesticides, livestock
The pledges echo growing rhetoric from EU farm chief Christophe Hansen and Health and Animal Welfare Commissioner Olivér Várhelyi.
A draft of the Commission’s vision for the EU agri-food sector strikes a tough stance on food trade and vows to impose stricter standards on third countries when it comes to pesticides and animal welfare.
In 2025, the EU executive wants to present an ambitious plan to strengthen reciprocity in production standards, according to a draft roadmap for the EU and food set to be unveiled on 19 February and seen by Euractiv.
According to sources familiar with the issue, the part on trade standards is the one that is raising more eyebrows in the Commission's ongoing internal discussion, as it would mean striking a new balance at a time when the EU executive is trying to expand its network of trade partnerships.
“The Commission will pursue, in line with international rules, a stronger alignment of production standards applied to imported products, notably on pesticides and animal welfare,” the text reads.
The Commission promises to ensure that the most hazardous pesticides banned in the EU “are not allowed back” via imports. It also vows to prevent banned substances from being produced in the bloc for export elsewhere.
The pledges echo growing rhetoric from EU farm chief Christophe Hansen and Health and Animal Welfare Commissioner Olivér Várhelyi, who have recently signalled a tougher approach to production standards for imported food. EU agriculture ministers joined the push last month, urging the EU executive to crack down on imports containing residues of banned pesticides. Euractiv
February 12, 2025
Decrease in production, exports and stocks of palm oil in Malaysia supports prices for sunflower oil
In its latest report, the Malaysian Palm Oil Board (MPOB) lowered its estimate of oil production and stocks in Malaysia by more than analysts expected, which led to an increase in quotations.
Thus, according to the report:
palm oil stocks in January decreased by 7.6% to a 21-month low of 1.58 million tons,
production decreased by 17% to 1.24 million tons compared to December
exports decreased by 13% to 1.17 million tons.
Stocks of palm oil in Malaysia declined for the fourth consecutive month, which reduces the potential for exports and forces buyers to switch to buying cheaper soybean and sunflower oil.
April futures for palm oil on the Bursa exchange in Malaysia yesterday rose 2% to 4595 ringgit/t or 1029 $/t (+5.2% for the week, +8.9% for two weeks).
Growth was limited by the fall in export demand from India and China, but traders hope to increase demand in the near future, which will support prices. UKRagroconsult
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Malaysia exported RM288.23 mil palm oil and palm-based products to Central Asia in 2024
KUALA LUMPUR (Feb 12): Malaysia exported 54,665 tonnes of palm oil and palm-based products worth RM288.23 million to Uzbekistan, Kazakhstan, Tajikistan, Kyrgyzstan, and Turkmenistan in Central Asia in 2024, said Plantation and Commodities Deputy Minister Datuk Chan Foong Hin.
He said the Plantation and Commodities Ministry, through the Malaysian Palm Oil Council (MPOC), remains committed to strengthening Malaysia's position as a key player in supplying palm oil to Central Asia while enhancing its market dominance in Pakistan.
“Central Asia is an important export destination for Malaysian palm oil.
“In recent years, MPOC, as the agency responsible for promoting Malaysian palm oil, has implemented various initiatives in the region,” he said during a question and answer session in the Dewan Rakyat on Wednesday in response to Datuk Mohd Isam Mohd Isa (BN-Tampin) about the ministry’s efforts to position Malaysia as the leading player in palm oil supply in Central Asia and to regain dominance in palm oil distribution in Pakistan. The EdgeMY
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USAID funding freeze to shutter Soybean Innovation Lab
The director of the Soybean Innovation Lab says the Trump administration’s decision to cease funding for U.S. Agency for International Development (USAID) projects will hurt soybean farmers.
Peter Goldsmith says since 2013 the Soybean Innovation Lab has utilized USAID funding to not only bring modern soybean farming practices to Africa, but also processing demand for U.S.-grown beans.
“It’s about utilization.” He says, “It’s a great opportunity for U.S. farmers to export soybeans to the continent, but they can’t export if there’s no demand for their product. We are creating that demand so these processors know how to process soybean, are efficient with it, and can handle the product.”
Although based at the University of Illinois, several other institutions contribute to SIL, including Iowa State University, Mississippi State University and University of Missouri. Goldsmith tells Brownfield the loss of that funding means more than 100 soybean experts from 24 countries are now out of work.
“We’re losing, I think, the greatest force for the market in Africa, the last potential soybean market that could be.” He says, “We’ve shown already that we are able to affect and grow that soybean market.” Brown Field AGNEWS
Decrease in production, exports and stocks of palm oil in Malaysia supports prices for sunflower oil
In its latest report, the Malaysian Palm Oil Board (MPOB) lowered its estimate of oil production and stocks in Malaysia by more than analysts expected, which led to an increase in quotations.
Thus, according to the report:
palm oil stocks in January decreased by 7.6% to a 21-month low of 1.58 million tons,
production decreased by 17% to 1.24 million tons compared to December
exports decreased by 13% to 1.17 million tons.
Stocks of palm oil in Malaysia declined for the fourth consecutive month, which reduces the potential for exports and forces buyers to switch to buying cheaper soybean and sunflower oil.
April futures for palm oil on the Bursa exchange in Malaysia yesterday rose 2% to 4595 ringgit/t or 1029 $/t (+5.2% for the week, +8.9% for two weeks).
Growth was limited by the fall in export demand from India and China, but traders hope to increase demand in the near future, which will support prices. UKRagroconsult
--------
Malaysia exported RM288.23 mil palm oil and palm-based products to Central Asia in 2024
KUALA LUMPUR (Feb 12): Malaysia exported 54,665 tonnes of palm oil and palm-based products worth RM288.23 million to Uzbekistan, Kazakhstan, Tajikistan, Kyrgyzstan, and Turkmenistan in Central Asia in 2024, said Plantation and Commodities Deputy Minister Datuk Chan Foong Hin.
He said the Plantation and Commodities Ministry, through the Malaysian Palm Oil Council (MPOC), remains committed to strengthening Malaysia's position as a key player in supplying palm oil to Central Asia while enhancing its market dominance in Pakistan.
“Central Asia is an important export destination for Malaysian palm oil.
“In recent years, MPOC, as the agency responsible for promoting Malaysian palm oil, has implemented various initiatives in the region,” he said during a question and answer session in the Dewan Rakyat on Wednesday in response to Datuk Mohd Isam Mohd Isa (BN-Tampin) about the ministry’s efforts to position Malaysia as the leading player in palm oil supply in Central Asia and to regain dominance in palm oil distribution in Pakistan. The EdgeMY
--------
USAID funding freeze to shutter Soybean Innovation Lab
The director of the Soybean Innovation Lab says the Trump administration’s decision to cease funding for U.S. Agency for International Development (USAID) projects will hurt soybean farmers.
Peter Goldsmith says since 2013 the Soybean Innovation Lab has utilized USAID funding to not only bring modern soybean farming practices to Africa, but also processing demand for U.S.-grown beans.
“It’s about utilization.” He says, “It’s a great opportunity for U.S. farmers to export soybeans to the continent, but they can’t export if there’s no demand for their product. We are creating that demand so these processors know how to process soybean, are efficient with it, and can handle the product.”
Although based at the University of Illinois, several other institutions contribute to SIL, including Iowa State University, Mississippi State University and University of Missouri. Goldsmith tells Brownfield the loss of that funding means more than 100 soybean experts from 24 countries are now out of work.
“We’re losing, I think, the greatest force for the market in Africa, the last potential soybean market that could be.” He says, “We’ve shown already that we are able to affect and grow that soybean market.” Brown Field AGNEWS
February 11, 2025
EU plans simpler rules for billions worth of farm subsidies, draft shows
BRUSSELS, Feb 10 (Reuters) - The European Union is drawing up plans to simplify rules governing its huge farming subsidy programme, draft documents seen by Reuters showed, as Brussels races to lighten the regulatory burden on businesses.
The move could affect large sums of EU money. The EU's Common Agricultural Policy (CAP) of farming subsidies is worth around a third of its 2021-2027 budget, or around 387 billion euros ($399 billion) in payments to farmers and rural development.
A draft European Commission calendar of upcoming policies, seen by Reuters, showed the Commission will propose a CAP "simplification package" in the second quarter of this year.
"Simplification measures concerning the Common Agricultural Policy will address sources of complexity and excessive administrative burden for national administrations and farmers," a second draft Commission document said.
The drafts could change before they are due to be published on Tuesday. A Commission spokesperson confirmed on Monday it intends to make proposals "to alleviate the burden weighing on farmers" in the first half of this year.
Farmers across Europe wielded their political clout last year when they staged months of sometimes-violent protests against EU red tape. In response, the EU diluted some green conditions attached to farming subsidies.
The upcoming simplification plans are part of an EU drive to streamline rules, aiming to make local industries more competitive and respond to U.S. President Donald Trump's promise to scrap regulations.
Reducing corporate regulation was an election campaign pledge for Trump, who already rolled back rules on oil and gas drilling within his first days in office.
Danish government minister Jeppe Bruus, who manages Denmark's "Green Tripartite" deal to bring the farming sector in line with climate targets, said his country supported CAP reforms that would simplify bureaucracy - but also offer farmers more support for green schemes.
"I totally agree on the agenda of deregulation, because it's a monster that just keeps feeding itself," Bruus told Reuters in an interview last week. "At the same time, we need to stay focused on how to address climate change."
The European Commission faced criticism from campaigners for responding to last year's farmers protests by quickly paring back some of the subsidies' green conditions.
The EU's ombudsman launched an inquiry in September into the changes after NGOs complained that Brussels had breached EU law by failing to carry out a climate assessment before making the changes. Reuters
EU plans simpler rules for billions worth of farm subsidies, draft shows
BRUSSELS, Feb 10 (Reuters) - The European Union is drawing up plans to simplify rules governing its huge farming subsidy programme, draft documents seen by Reuters showed, as Brussels races to lighten the regulatory burden on businesses.
The move could affect large sums of EU money. The EU's Common Agricultural Policy (CAP) of farming subsidies is worth around a third of its 2021-2027 budget, or around 387 billion euros ($399 billion) in payments to farmers and rural development.
A draft European Commission calendar of upcoming policies, seen by Reuters, showed the Commission will propose a CAP "simplification package" in the second quarter of this year.
"Simplification measures concerning the Common Agricultural Policy will address sources of complexity and excessive administrative burden for national administrations and farmers," a second draft Commission document said.
The drafts could change before they are due to be published on Tuesday. A Commission spokesperson confirmed on Monday it intends to make proposals "to alleviate the burden weighing on farmers" in the first half of this year.
Farmers across Europe wielded their political clout last year when they staged months of sometimes-violent protests against EU red tape. In response, the EU diluted some green conditions attached to farming subsidies.
The upcoming simplification plans are part of an EU drive to streamline rules, aiming to make local industries more competitive and respond to U.S. President Donald Trump's promise to scrap regulations.
Reducing corporate regulation was an election campaign pledge for Trump, who already rolled back rules on oil and gas drilling within his first days in office.
Danish government minister Jeppe Bruus, who manages Denmark's "Green Tripartite" deal to bring the farming sector in line with climate targets, said his country supported CAP reforms that would simplify bureaucracy - but also offer farmers more support for green schemes.
"I totally agree on the agenda of deregulation, because it's a monster that just keeps feeding itself," Bruus told Reuters in an interview last week. "At the same time, we need to stay focused on how to address climate change."
The European Commission faced criticism from campaigners for responding to last year's farmers protests by quickly paring back some of the subsidies' green conditions.
The EU's ombudsman launched an inquiry in September into the changes after NGOs complained that Brussels had breached EU law by failing to carry out a climate assessment before making the changes. Reuters
February 09, 2025
With deforestation rising, is Indonesia missing the forest for the trees?
Indonesia lost more than 26,000 sq km of primary and secondary forests last year, according to a new NGO report
An area of forest more than three times the size of Singapore vanished in Indonesia last year, alarming environmental groups, who have cautioned that deforestation could worsen because of increased mining operations and the government’s focus on food and energy self-sufficiency.
Indonesia lost 261,575 hectares, or 2,615 sq km (1,010 square miles), of primary and secondary forests in 2024, according to a new report from NGO Auriga Nusantara – exceeding the previous year’s losses by more than 4,000 hectares (9,884 acres).
Based on satellite image analysis and fieldwork, the report published on January 31 showed most of the forest losses took place in areas that had been opened up for development by the government. East Kalimantan was ranked as the biggest contributor to deforestation at 44,483 hectares (109,920 acres) last year.
The Indonesian government has criticised the report, saying that it failed to acknowledge Jakarta’s significant replanting efforts.
Indonesia has one of the highest rates of deforestation globally due to mining, farming and logging activities. According to Global Forest Watch, more than 74 million hectares (183 million acres) of rainforest have been lost in Indonesia since 1950, driven by the palm oil, paper and rubber industries.
Jakarta has faced criticisms for permitting companies from such industries to operate on Borneo – the world’s third-largest island – with minimal oversight.
Ade Tri Ajikusumah, a senior official at Indonesia’s environment and forestry ministry, said that Auriga Nusantara’s report did not take into account Jakarta’s reforestation efforts spanning 40,000 hectares.
The government’s figures for “gross” deforestation in Indonesia last year were “not significantly different” to the NGO’s findings, Ade told reporters.
“We are now working to maximise land use. These areas [highlighted in the report] were previously managed by companies under existing permits. So it’s not deforestation … it was already designed for development.” SCMP
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Impact of Spain’s agro-industry akin to that of palm oil and soy production in global south, NGOs say
Richard Weyndling
German and Spanish NGOs yesterday targeted the Fruit Logistica trade fair in Berlin to protest the environmental and social impact of Spain’s intensive fruit and horticulture industry – Europe’s principal exporter of fruit and vegetables, whose largest market is Germany.
The intensive model of production for export has led, they say, to the destruction of protected habitats in southern Spain such as Murcia’s Mar Menor, polluted by nitrates in runoff, and Andalusia’s Doñana wetland, dried out by the overexploitation of groundwater resources.
“A parallel to Europe’s importation of deforestation via the production for export of palm oil and soy is occurring with the production of fruit and vegetables for export in southern Spain,” Elena Alter, spokeswoman for the Spanish NGO Ecologistas en Acción, told ENDS.
Attending the Fruit Logistica fair in Berlin on Wednesday (5 February), Spain’s junior minister for agriculture and food Begoña García stressed Spain’s role as the EU’s number one exporter of fruit and vegetables with sales exceeding €18 billion last year. She said the sector is a “synonym for quality, competence and success” and “a unique economic and social motor for our communities”.
“Despite arguments about the economic benefits of the industry, this model, which depends principally on the labour of exploited immigrants, makes profits only for a few producers, not for society as a whole. The provinces concerned, Murcia, Almería and Huelva, are among the poorest in Spain with average incomes below €11,000 a year,” she added.
The ministry said it was unable to respond in the time available to a request for a response to the NGOs’ allegations.
Spain has been condemned by the European Court of Justice both for failure to tackle nitrate pollution and for the over-exploitation of Doñana’s aquifers.
Lili Halle, of the German small farmers’ association Junge AbL, told ENDS that “we need to fight for better food systems in which people have better jobs and which don’t involve transporting everything thousands of kilometres”.
“Most people in Germany are not aware of the impact of the fresh food they purchase and that even the organic produce from Spain is produced under bad conditions,” she said. “But it’s not really up to the consumers to change but the big operators who need to change their practices,” she added.
FEPEX, the Spanish federation of associations of fruit producers and exporters, turned down a request to comment on the arguments presented by the NGOs. ENDS Europe
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Coordinating Ministry For Food Optimizes Dry Grain Production In Palm Oil Rejuvenation Areas
JAKARTA - The Coordinating Ministry for Food Affairs seeks to optimize the production of dry grain from the planting of the rice gogo for the BUMN PT Perkebunan Nusantara (PTPN) program on the sidelines of the oil palm rejuvenation area. Production is projected to reach 50 tons in one harvest.
Deputy for Food Affordability and Security Coordination of the Coordinating Ministry for Food, Nani Hendiarti, while reviewing the progress of the location of the Nusantara Plantation Plantation Plantation Plantation Program, initiated by PTPN IV in Siak, Riau Province, said that the gogo rice plant on the sidelines of the young palm oil program for the people's oil palm rejuvenation program (PSR) is a tangible manifestation of the support of Plantation SOEs in realizing the national food self-sufficiency program in 2027.
"PTPN's 'panas' program is a very good innovation. This pattern is the first to be implemented on oil palm rejuvenation land. We can see the results together, rice waves have emerged. The progress is very good and God willing, it can produce 2.5 tons per hectare," said Nani quoting ANTARA, Sunday 9 February.
With the progress of the growth of gogo rice that is spread over an area of 20 hectares on the sidelines of young palm oil plants and planted using superior seeds from the research results of the Bogor Agricultural Institute, he is confident that he will be able to produce 50 tons of dry unhulled rice when the harvest season arrives.
However, Nani requested that the potential for the first pilot project of the Padi Perkebunan Nusantara (Tampangan) Plantation Program be optimized.
"Because this is the first pilot project, it is hoped that it can be a good lesson and the potential can continue to be improved because the conditions in Siak Regency are certainly different from the defects on the island of Java, so there needs to be special treatment," he said.
The government has declared food self-sufficiency as one of the main steps to face global challenges, as well as to anticipate a global crisis situation, where other countries will prioritize their domestic interests.
Indonesia must be able to achieve food self-sufficiency in 2027. Nani said this target is a challenge, but steps and synergies with all parties as well as unification of vision and mission are very important, so that food security and self-sufficiency can be accelerated. VOI
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Stop relying on crude palm oil exports
KUALA LUMPUR: Malaysia needs to shift to high-value products like oleochemicals and biodiesel rather than just relying on crude palm oil (CPO) exports without a solid value-added strategy, according to Paya Besar Member of Parliament Datuk Mohd Shahar Abdullah.
He said Indonesia, which has implemented a mandatory B35-B40 biodiesel policy since 2020 to stabilise domestic demand, has seen palm oil prices that are more stable compared to Malaysia, which depends 80 per cent on crude exports.
Malaysia’s CPO price remains susceptible to sharp fluctuations and is easily influenced by global market speculation, he said during the debate on the motion of thanks for the royal address in the Dewan Rakyat recently.
According to Mohd Shahar, Malaysia is caught in the “volume versus value” dilemma.
“Although exports to the European Union (EU) contributed only 14 per cent of Malaysia’s total palm oil exports in 2023, the EU premium rate, on a pro-rata basis, is actually higher compared to that in the Indian and Chinese markets.
“Besides looking at India and China as volume markets, we need to view the EU as a volume market that offers high value.
Moreover, the EU remains the main importer of palm kernel oil for the past five years,” he said.
Mohd Shahar, who is also the chairman of the Parliament’s Special Select Committee on Finance and Economy, also praised the government’s recent efforts to correct the perception and stigma of Malaysian palm oil.
“Promotion and communication efforts must be intensified all the way to the level of policy implementers, not just at the policymaker level,” he added. – BERNAMA/ Sarawak Tribune
With deforestation rising, is Indonesia missing the forest for the trees?
Indonesia lost more than 26,000 sq km of primary and secondary forests last year, according to a new NGO report
An area of forest more than three times the size of Singapore vanished in Indonesia last year, alarming environmental groups, who have cautioned that deforestation could worsen because of increased mining operations and the government’s focus on food and energy self-sufficiency.
Indonesia lost 261,575 hectares, or 2,615 sq km (1,010 square miles), of primary and secondary forests in 2024, according to a new report from NGO Auriga Nusantara – exceeding the previous year’s losses by more than 4,000 hectares (9,884 acres).
Based on satellite image analysis and fieldwork, the report published on January 31 showed most of the forest losses took place in areas that had been opened up for development by the government. East Kalimantan was ranked as the biggest contributor to deforestation at 44,483 hectares (109,920 acres) last year.
The Indonesian government has criticised the report, saying that it failed to acknowledge Jakarta’s significant replanting efforts.
Indonesia has one of the highest rates of deforestation globally due to mining, farming and logging activities. According to Global Forest Watch, more than 74 million hectares (183 million acres) of rainforest have been lost in Indonesia since 1950, driven by the palm oil, paper and rubber industries.
Jakarta has faced criticisms for permitting companies from such industries to operate on Borneo – the world’s third-largest island – with minimal oversight.
Ade Tri Ajikusumah, a senior official at Indonesia’s environment and forestry ministry, said that Auriga Nusantara’s report did not take into account Jakarta’s reforestation efforts spanning 40,000 hectares.
The government’s figures for “gross” deforestation in Indonesia last year were “not significantly different” to the NGO’s findings, Ade told reporters.
“We are now working to maximise land use. These areas [highlighted in the report] were previously managed by companies under existing permits. So it’s not deforestation … it was already designed for development.” SCMP
--------
Impact of Spain’s agro-industry akin to that of palm oil and soy production in global south, NGOs say
Richard Weyndling
German and Spanish NGOs yesterday targeted the Fruit Logistica trade fair in Berlin to protest the environmental and social impact of Spain’s intensive fruit and horticulture industry – Europe’s principal exporter of fruit and vegetables, whose largest market is Germany.
The intensive model of production for export has led, they say, to the destruction of protected habitats in southern Spain such as Murcia’s Mar Menor, polluted by nitrates in runoff, and Andalusia’s Doñana wetland, dried out by the overexploitation of groundwater resources.
“A parallel to Europe’s importation of deforestation via the production for export of palm oil and soy is occurring with the production of fruit and vegetables for export in southern Spain,” Elena Alter, spokeswoman for the Spanish NGO Ecologistas en Acción, told ENDS.
Attending the Fruit Logistica fair in Berlin on Wednesday (5 February), Spain’s junior minister for agriculture and food Begoña García stressed Spain’s role as the EU’s number one exporter of fruit and vegetables with sales exceeding €18 billion last year. She said the sector is a “synonym for quality, competence and success” and “a unique economic and social motor for our communities”.
“Despite arguments about the economic benefits of the industry, this model, which depends principally on the labour of exploited immigrants, makes profits only for a few producers, not for society as a whole. The provinces concerned, Murcia, Almería and Huelva, are among the poorest in Spain with average incomes below €11,000 a year,” she added.
The ministry said it was unable to respond in the time available to a request for a response to the NGOs’ allegations.
Spain has been condemned by the European Court of Justice both for failure to tackle nitrate pollution and for the over-exploitation of Doñana’s aquifers.
Lili Halle, of the German small farmers’ association Junge AbL, told ENDS that “we need to fight for better food systems in which people have better jobs and which don’t involve transporting everything thousands of kilometres”.
“Most people in Germany are not aware of the impact of the fresh food they purchase and that even the organic produce from Spain is produced under bad conditions,” she said. “But it’s not really up to the consumers to change but the big operators who need to change their practices,” she added.
FEPEX, the Spanish federation of associations of fruit producers and exporters, turned down a request to comment on the arguments presented by the NGOs. ENDS Europe
--------
Coordinating Ministry For Food Optimizes Dry Grain Production In Palm Oil Rejuvenation Areas
JAKARTA - The Coordinating Ministry for Food Affairs seeks to optimize the production of dry grain from the planting of the rice gogo for the BUMN PT Perkebunan Nusantara (PTPN) program on the sidelines of the oil palm rejuvenation area. Production is projected to reach 50 tons in one harvest.
Deputy for Food Affordability and Security Coordination of the Coordinating Ministry for Food, Nani Hendiarti, while reviewing the progress of the location of the Nusantara Plantation Plantation Plantation Plantation Program, initiated by PTPN IV in Siak, Riau Province, said that the gogo rice plant on the sidelines of the young palm oil program for the people's oil palm rejuvenation program (PSR) is a tangible manifestation of the support of Plantation SOEs in realizing the national food self-sufficiency program in 2027.
"PTPN's 'panas' program is a very good innovation. This pattern is the first to be implemented on oil palm rejuvenation land. We can see the results together, rice waves have emerged. The progress is very good and God willing, it can produce 2.5 tons per hectare," said Nani quoting ANTARA, Sunday 9 February.
With the progress of the growth of gogo rice that is spread over an area of 20 hectares on the sidelines of young palm oil plants and planted using superior seeds from the research results of the Bogor Agricultural Institute, he is confident that he will be able to produce 50 tons of dry unhulled rice when the harvest season arrives.
However, Nani requested that the potential for the first pilot project of the Padi Perkebunan Nusantara (Tampangan) Plantation Program be optimized.
"Because this is the first pilot project, it is hoped that it can be a good lesson and the potential can continue to be improved because the conditions in Siak Regency are certainly different from the defects on the island of Java, so there needs to be special treatment," he said.
The government has declared food self-sufficiency as one of the main steps to face global challenges, as well as to anticipate a global crisis situation, where other countries will prioritize their domestic interests.
Indonesia must be able to achieve food self-sufficiency in 2027. Nani said this target is a challenge, but steps and synergies with all parties as well as unification of vision and mission are very important, so that food security and self-sufficiency can be accelerated. VOI
--------
Stop relying on crude palm oil exports
KUALA LUMPUR: Malaysia needs to shift to high-value products like oleochemicals and biodiesel rather than just relying on crude palm oil (CPO) exports without a solid value-added strategy, according to Paya Besar Member of Parliament Datuk Mohd Shahar Abdullah.
He said Indonesia, which has implemented a mandatory B35-B40 biodiesel policy since 2020 to stabilise domestic demand, has seen palm oil prices that are more stable compared to Malaysia, which depends 80 per cent on crude exports.
Malaysia’s CPO price remains susceptible to sharp fluctuations and is easily influenced by global market speculation, he said during the debate on the motion of thanks for the royal address in the Dewan Rakyat recently.
According to Mohd Shahar, Malaysia is caught in the “volume versus value” dilemma.
“Although exports to the European Union (EU) contributed only 14 per cent of Malaysia’s total palm oil exports in 2023, the EU premium rate, on a pro-rata basis, is actually higher compared to that in the Indian and Chinese markets.
“Besides looking at India and China as volume markets, we need to view the EU as a volume market that offers high value.
Moreover, the EU remains the main importer of palm kernel oil for the past five years,” he said.
Mohd Shahar, who is also the chairman of the Parliament’s Special Select Committee on Finance and Economy, also praised the government’s recent efforts to correct the perception and stigma of Malaysian palm oil.
“Promotion and communication efforts must be intensified all the way to the level of policy implementers, not just at the policymaker level,” he added. – BERNAMA/ Sarawak Tribune
February 08, 2025
Thailand Moves to Protect Palm Oil Farmers Amid Policy Changes
The government is drafting new legislation to safeguard palm oil farmers, ensuring fair income distribution and job security as the industry faces upcoming policy shifts. The move comes in response to the planned termination of biodiesel price subsidies by 2026, a decision that could significantly impact farmers and industry stakeholders. The proposed law aims to create a sustainable market framework for palm oil producers while preventing potential economic disruptions.
Deputy Prime Minister and Minister of Energy Pirapan Salirathavibhaga announced that the first meeting of the Drafting Committee for the Palm Oil Industry Promotion Law was held on February 5th. He emphasized that the legislation would provide long-term stability for palm oil farmers. The Fuel Fund’s decision to phase out subsidies for biodiesel blending has accelerated the government’s efforts to support the industry.
To lead the drafting process, Pirapan appointed Atavit Suwanpakdee as chairman of the committee and established an additional working group to ensure efficient progress. The proposed law will be modeled after the Cane and Sugar Act of 1984, which has successfully provided structural support for sugarcane farmers.
The Ministry of Energy is collaborating with the Ministry of Industry, led by Minister Akanat Promphan, to address challenges faced by palm oil farmers. With the biodiesel subsidy program set to expire in 2026, the government is working to implement policies that will stabilize the market and expand opportunities for palm oil producers.
Minister Pirapan expressed confidence that the new legislative initiative will protect farmers from market volatility while fostering long-term growth and sustainability in Thailand’s palm oil industry. As policymakers move forward, the goal remains clear: ensuring that farmers and industry players can thrive in a changing economic landscape. Thai News
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Joint Malaysia-Singapore biofuels hub to drive $337 million green investment
A new biofuels hub focused on Bio-Liquefied Natural Gas (Bio-LNG) will be established in the Johor-Singapore Special Economic Zone (JS-SEZ), with the capacity to process 350,000 tons of Bio-LNG annually.
Developers emphasize that this cross-border collaboration has already secured partial funding, with green investments expected to reach 1.5 billion ringgit (about 337 million USD).
Bio-LNG processing hub with an annual capacity of 350,000 tons
On Feb. 6, Malaysia’s biofuel company BAC Renewable Energy (BAC RE), along with Singapore’s Dovechem Group and Tanjung Langsat Port Terminal (TLP Terminal), signed an MOU to build a biofuels plant in Johor. The project, named the "BAC RE ASEAN Biofuels Storage and Exporting Hub," aims to serve as a major regional biofuel facility.
According to the agreement, BAC RE will oversee the development, while Dovechem Group will provide the land and take on operational responsibilities. TLP Terminal, a subsidiary of Johor Corporation (Johor Corp), will manage port operations.
The project will be carried out in two phases. In the first phase, the hub will have the capacity to produce and handle 33,000 tons of Bio-LNG annually, with a storage capacity of approximately 7,500 cubic meters. This will gradually scale up to 350,000 tons per year, with an estimated construction cost of 150 million ringgit (about 33.7 million USD). In the second phase, the facility will expand its services to include storage and processing of Bio-Methanol.
Johor expedites investment process to attract foreign capital
Given the abundant bio-waste generated during palm oil production, which provides a rich feedstock for Bio-LNG, BAC RE estimates that the region could supply up to 3.3 million tons of biofuels annually. The company hopes the establishment of the storage and export hub will help promote the adoption of biofuels in shipping, supporting the industry’s decarbonization goals.
BAC RE Director Hasnoel Ramly explained that Tanjung Langsat Port was chosen due to its strategic location as one of the three major ports in the JS-SEZ. The port’s proximity to the Malacca Strait and Singapore, the world’s largest bunkering hub, further enhances its appeal.
Ramly also highlighted the incentives offered by the JS-SEZ, which will drive biofuel development and create business opportunities. The project is expected to attract investments in green technology and engineering, with total investments estimated to reach 1.2 to 1.5 billion ringgit. Recessary
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Malaysia eyes stronger trade, investment ties with EU
However, economist Geoffrey Williams says issues such as sustainability remain a sticking point in talks between the two sides.
PETALING JAYA: Malaysia is positioning itself as an attractive market and investment destination for Europe, but experts say some issues, such as those linked to sustainability, will have to be resolved first.
European Union-Asean Business Council (EU-ABC) executive director Chris Humphrey said stronger ties between the two sides will ensure that Malaysian exporters get easier and cheaper access to the EU single market, thus benefiting the Malaysian economy.
However, economists Geoffrey Williams and Carmelo Ferlito pointed out that previous negotiations had been halted over several issues. They said further discussions were needed on matters such as the EU policy of restricting products that are not certified as sustainable.
In an email interview, Humphrey told FMT that, once concluded and sealed, the Malaysia-EU Free Trade Agreement (Meufta) will improve trade ties between the two sides.
For European investors, he said, Malaysia could be an attractive destination for high-end manufacturing, particularly in electronics and components.
“It will also serve as a key access point to the broader Asean region,” he said.
He also expressed EU-ABC member countries’ delight with the resumption of Meufta negotiations, noting that both sides have pressed for the revival of talks for some time now.
“This will benefit companies and economies, boost trade and investment, and strengthen political ties between EU member states and Malaysia,” he said.
Outstanding issues
Williams, who served as deputy chairman of the European Chambers of Commerce at the last Meufta talks in 2012, said there has been no progress towards resolution of the issues that halted previous negotiations.
“The issues of concern include the EU’s desire to enter major sectors such as the automotive market as well as direct access to government procurement, both of which are restricted in Malaysia,” he told FMT.
“In turn, Malaysia was concerned with non-tariff barriers to trade, especially in palm oil products and sectors affected by the EU sustainability restrictions,” he added.
Williams said sustainability issues surrounding palm oil and its derivatives will be a crucial sticking point, as the implementation of the European Union Deforestation Regulation (EUDR) has only been delayed, but its environmental, social and governance (ESG) certification requirements will remain.
In October last year, the Malaysian Palm Oil Council (MPOC) called for the EU to recognise the Malaysian Sustainable Palm Oil (MSPO) certification as EUDR-aligned.
However, Williams said, the EU was unlikely to agree.
“It threatens their dominance in the certification market and will also pressure them into recognising the Indonesia Sustainable Palm Oil scheme, which they do not support.
“The EU prefers the Roundtable on Sustainable Palm Oil standards, in which they have a strong influence and is certified mostly by EU companies,” Williams added.
Ferlito, who is CEO of the Center for Market Education and faculty member of Universitas Prasetiya Mulya, said the EU should understand that sustainability must be discussed in a way that will not add regulations that hinder innovation and economic growth.
“Green sustainability will not work if it is not economically sustainable, and the right approach to sustainability is an approach that places emphasis on the role of innovation of products, processes and policies,” he said.
Meufta negotiations were launched in 2010 but were put on hold in 2012 after seven rounds at Malaysia’s request.
The resumption of negotiations was announced on Jan 20, following Prime Minister Anwar Ibrahim’s meeting with EU leaders in Brussels.
Malaysia will be represented at the Meufta talks by the investment trade and industry ministry (Miti), while the EU will send its trade representatives. The date for the talks has yet to be fixed. Free Malaysia Today
Thailand Moves to Protect Palm Oil Farmers Amid Policy Changes
The government is drafting new legislation to safeguard palm oil farmers, ensuring fair income distribution and job security as the industry faces upcoming policy shifts. The move comes in response to the planned termination of biodiesel price subsidies by 2026, a decision that could significantly impact farmers and industry stakeholders. The proposed law aims to create a sustainable market framework for palm oil producers while preventing potential economic disruptions.
Deputy Prime Minister and Minister of Energy Pirapan Salirathavibhaga announced that the first meeting of the Drafting Committee for the Palm Oil Industry Promotion Law was held on February 5th. He emphasized that the legislation would provide long-term stability for palm oil farmers. The Fuel Fund’s decision to phase out subsidies for biodiesel blending has accelerated the government’s efforts to support the industry.
To lead the drafting process, Pirapan appointed Atavit Suwanpakdee as chairman of the committee and established an additional working group to ensure efficient progress. The proposed law will be modeled after the Cane and Sugar Act of 1984, which has successfully provided structural support for sugarcane farmers.
The Ministry of Energy is collaborating with the Ministry of Industry, led by Minister Akanat Promphan, to address challenges faced by palm oil farmers. With the biodiesel subsidy program set to expire in 2026, the government is working to implement policies that will stabilize the market and expand opportunities for palm oil producers.
Minister Pirapan expressed confidence that the new legislative initiative will protect farmers from market volatility while fostering long-term growth and sustainability in Thailand’s palm oil industry. As policymakers move forward, the goal remains clear: ensuring that farmers and industry players can thrive in a changing economic landscape. Thai News
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Joint Malaysia-Singapore biofuels hub to drive $337 million green investment
A new biofuels hub focused on Bio-Liquefied Natural Gas (Bio-LNG) will be established in the Johor-Singapore Special Economic Zone (JS-SEZ), with the capacity to process 350,000 tons of Bio-LNG annually.
Developers emphasize that this cross-border collaboration has already secured partial funding, with green investments expected to reach 1.5 billion ringgit (about 337 million USD).
Bio-LNG processing hub with an annual capacity of 350,000 tons
On Feb. 6, Malaysia’s biofuel company BAC Renewable Energy (BAC RE), along with Singapore’s Dovechem Group and Tanjung Langsat Port Terminal (TLP Terminal), signed an MOU to build a biofuels plant in Johor. The project, named the "BAC RE ASEAN Biofuels Storage and Exporting Hub," aims to serve as a major regional biofuel facility.
According to the agreement, BAC RE will oversee the development, while Dovechem Group will provide the land and take on operational responsibilities. TLP Terminal, a subsidiary of Johor Corporation (Johor Corp), will manage port operations.
The project will be carried out in two phases. In the first phase, the hub will have the capacity to produce and handle 33,000 tons of Bio-LNG annually, with a storage capacity of approximately 7,500 cubic meters. This will gradually scale up to 350,000 tons per year, with an estimated construction cost of 150 million ringgit (about 33.7 million USD). In the second phase, the facility will expand its services to include storage and processing of Bio-Methanol.
Johor expedites investment process to attract foreign capital
Given the abundant bio-waste generated during palm oil production, which provides a rich feedstock for Bio-LNG, BAC RE estimates that the region could supply up to 3.3 million tons of biofuels annually. The company hopes the establishment of the storage and export hub will help promote the adoption of biofuels in shipping, supporting the industry’s decarbonization goals.
BAC RE Director Hasnoel Ramly explained that Tanjung Langsat Port was chosen due to its strategic location as one of the three major ports in the JS-SEZ. The port’s proximity to the Malacca Strait and Singapore, the world’s largest bunkering hub, further enhances its appeal.
Ramly also highlighted the incentives offered by the JS-SEZ, which will drive biofuel development and create business opportunities. The project is expected to attract investments in green technology and engineering, with total investments estimated to reach 1.2 to 1.5 billion ringgit. Recessary
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Malaysia eyes stronger trade, investment ties with EU
However, economist Geoffrey Williams says issues such as sustainability remain a sticking point in talks between the two sides.
PETALING JAYA: Malaysia is positioning itself as an attractive market and investment destination for Europe, but experts say some issues, such as those linked to sustainability, will have to be resolved first.
European Union-Asean Business Council (EU-ABC) executive director Chris Humphrey said stronger ties between the two sides will ensure that Malaysian exporters get easier and cheaper access to the EU single market, thus benefiting the Malaysian economy.
However, economists Geoffrey Williams and Carmelo Ferlito pointed out that previous negotiations had been halted over several issues. They said further discussions were needed on matters such as the EU policy of restricting products that are not certified as sustainable.
In an email interview, Humphrey told FMT that, once concluded and sealed, the Malaysia-EU Free Trade Agreement (Meufta) will improve trade ties between the two sides.
For European investors, he said, Malaysia could be an attractive destination for high-end manufacturing, particularly in electronics and components.
“It will also serve as a key access point to the broader Asean region,” he said.
He also expressed EU-ABC member countries’ delight with the resumption of Meufta negotiations, noting that both sides have pressed for the revival of talks for some time now.
“This will benefit companies and economies, boost trade and investment, and strengthen political ties between EU member states and Malaysia,” he said.
Outstanding issues
Williams, who served as deputy chairman of the European Chambers of Commerce at the last Meufta talks in 2012, said there has been no progress towards resolution of the issues that halted previous negotiations.
“The issues of concern include the EU’s desire to enter major sectors such as the automotive market as well as direct access to government procurement, both of which are restricted in Malaysia,” he told FMT.
“In turn, Malaysia was concerned with non-tariff barriers to trade, especially in palm oil products and sectors affected by the EU sustainability restrictions,” he added.
Williams said sustainability issues surrounding palm oil and its derivatives will be a crucial sticking point, as the implementation of the European Union Deforestation Regulation (EUDR) has only been delayed, but its environmental, social and governance (ESG) certification requirements will remain.
In October last year, the Malaysian Palm Oil Council (MPOC) called for the EU to recognise the Malaysian Sustainable Palm Oil (MSPO) certification as EUDR-aligned.
However, Williams said, the EU was unlikely to agree.
“It threatens their dominance in the certification market and will also pressure them into recognising the Indonesia Sustainable Palm Oil scheme, which they do not support.
“The EU prefers the Roundtable on Sustainable Palm Oil standards, in which they have a strong influence and is certified mostly by EU companies,” Williams added.
Ferlito, who is CEO of the Center for Market Education and faculty member of Universitas Prasetiya Mulya, said the EU should understand that sustainability must be discussed in a way that will not add regulations that hinder innovation and economic growth.
“Green sustainability will not work if it is not economically sustainable, and the right approach to sustainability is an approach that places emphasis on the role of innovation of products, processes and policies,” he said.
Meufta negotiations were launched in 2010 but were put on hold in 2012 after seven rounds at Malaysia’s request.
The resumption of negotiations was announced on Jan 20, following Prime Minister Anwar Ibrahim’s meeting with EU leaders in Brussels.
Malaysia will be represented at the Meufta talks by the investment trade and industry ministry (Miti), while the EU will send its trade representatives. The date for the talks has yet to be fixed. Free Malaysia Today
February 07, 2025
India's push for self-reliance in palm oil gets a boost with NMEO-OP
From packaged foods to personal care products, palm oil is an irreplaceable ingredient that makes modern life possible. Hence, as a country that is the world’s biggest importer of crude edible palm oil and accounts for 38 per cent of global palm oil consumption, achieving self-sufficiency in palm oil production is not only essential for reducing the considerable foreign exchange burden but also for enhancing sustainability in palm oil consumption. It is through the launch of the National Mission on Edible Oil - Oil Palm (NMEO-OP) in 2021 that India kickstarted its crucial journey towards self-reliance in edible oils.
With its comprehensive framework, NMEO-OP aims to enhance domestic production while securing farmers’ livelihoods. The mission outlines a farmer-centric pathway to increase palm oil production sustainably through tools and incentives that make oil palm cultivation a viable and profitable endeavour for farmers, the industry, and the nation.
Sowing the seeds of farmers’ prosperity
The well-structured guidelines of NMEO-OP have made oil palm cultivation particularly attractive for India’s small-scale farmers, with a special focus on subsidies, sustainability, and livelihood security.
Farmers are encouraged to utilise degraded and wasteland for oil palm cultivation, optimising land use to transform barren plots into sources of consistent income. While oil palm cultivation is synonymous with deforestation in other parts of the world, the Indian model ensures that domestic palm oil production is environmentally friendly and can be sustained in the long term. Business Standard
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Sunflower, soyabean oils gaining market in India over pricey palm oil
Palm oil imports down 24 per cent in the first two months of oil year 2024-25
As palm oil has turned expensive over soft oils in the past 4-5 months, domestic consumers in India are shifting to alternatives such as sunflower and soyabean oil. Businessline
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GAPKI asks expanded oil palm oil plantations to meet B50-B100 mandate by 2045
The Indonesian Palm Oil Association (GAPKI) says that Indonesia needs to have extended oil palm plantations to meet the needs of the mandatory program of mixing fuel oil (BBM) and biofuel (BBN) by 50 percent or B50 up to B100.
Extensification of oil palm plantations is the expansion of agricultural areas into previously unused areas to increase production from the resulting products.
Edi Suhardi, Head of GAPKI’s Positive Campaign Division, said that palm oil exports have begun to be disrupted when they have to fulfill the B40 mandate or obligation. Therefore, palm oil supply will not be sufficient if it has to fulfill the supply for B50.
“Palm oil production in Indonesia has stagnated at around 50 million tons per year. If it is increased to B50, it can only be done through extensification,” Edi said in a discussion in Jakarta on Wednesday, February 5, 2025.
Edi said that increasing palm oil supply would take a long time if it was only done by increasing plant productivity or intensification.
To increase production growth using the intensification method, it takes at least five to 10 years to achieve maximum results.
“Because oil palm is not like rice or corn which can bear fruit in a few months. With oil palm, it takes at least 5 years before productivity increases,” he said.
Therefore, oil palm land extension is needed in order to achieve the B100 target in 2045, he added.
“Because B100 requires palm oil production of up to 100 million tons per year or twice the current amount,” he concluded. Indonesia Business Post
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Surge in legal land clearing pushes up Indonesia deforestation rate in 2024
The country lost 261,575 hectares (646,366 acres) of forests, an area four times the size of Jakarta. That’s up 1.6% from 2023, according to data from environmental NGO Auriga Nusantara, which has been monitoring the country’s forest cover for years.
“While it’s only 4,000 hectares [nearly 10,000 acres] of increase [in forest loss], it’s still a worrying trend,” Auriga Nusantara director Timer Manurung told Mongabay. “At a time when natural forests [in Indonesia] keep shrinking, this number is still significant.”
This increase after years of declining deforestation shows how the government has failed to protect the country’s remaining forests, estimated at less than 90 million hectares (222 million acres), according to official data, Timer said.
While the government has issued a number of forest protection policies, they’re aimed mainly at restricting the issuance of new concessions for plantations and other commercial activities that involve clearing forests. But there’s no policy to protect the remaining stands of forest that lie within existing concessions that have already been granted by the government, Timer said.
In fact, the government incentivizes companies to clear forests within their concessions once they have the permits to do so, and punishes them for not doing so fast enough by rescinding the concessions and awarding them to other developers.
As a result, there’s been a noticeable shift in the deforestation trend: from illegal deforestation that occurs outside concessions, to legal deforestation inside concessions, permitted and encouraged by the government, Timer said.
The shift has been stark: 97% of the deforestation that Auriga Nusantara recorded in 2024 occurred within legal areas, such as concessions and infrastructure projects. Mongabay
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Palm Oil Biodiesel
Mandatory B40 Biodiesel Policy Risks Causing National Palm Oil Deficit
InfoSAWIT, JAKARTA – The B40 biodiesel development policy that has been implemented since early 2025 is considered to have a high risk of causing a national palm oil deficit. As a result, the supply of cooking oil for domestic food needs has the potential to be disrupted. This is due to national palm oil production which is projected to fall by 5.1% this year. The decline in production is due to the increasing number of oil palm plants that have entered an unproductive age and require rejuvenation.
On the other hand, domestic demand for palm oil continues to increase along with the implementation of biodiesel policies and other national programs such as Free Nutritious Meals. However, biodiesel development should not be completed with the expansion of palm oil plantations that can trigger deforestation. Based on records from several community organizations, mixing 40% (B40) in biodiesel has the potential to require additional palm oil plantations of up to 138 thousand hectares. In fact, there are alternative solutions that the government can take without opening new land.
"We calculate that the need for CPO raw materials for the implementation of B40 can reach 14.8 million MT, up 31.3% compared to 2024. This will trigger a surge in domestic CPO demand, especially when the government is also running the Free Nutritious Meal program," said Head of the Advocacy Department of the Palm Oil Farmers Union (SPKS), Marselinus Andry in his statement to InfoSAWIT , Friday (7/2/2205).
The implementation of B40 is expected to increase the national biodiesel quota to 15.6 million kiloliters from the previous 12.98 million kiloliters in the B35 program. SPKS assesses that this policy has the potential to cause a national palm oil deficit of 1.04 million MT, due to the imbalance between domestic production and consumption.
The government is trying to ensure the availability of domestic industrial raw materials by tightening exports of palm oil mill effluent (POME), high acid palm oil residue (HAPOR), and used cooking oil (UCO). This policy is regulated in the Regulation of the Minister of Trade Number 2 of 2025 which came into effect on January 8, 2025. However, this policy is considered not to have resolved the root of the palm oil deficit problem, and has the potential to harm independent palm oil farmers who supply raw materials for palm oil factories.
"CPO production from independent palm oil farmers has great potential to meet domestic biodiesel needs. The government needs to regulate the supply chain from independent farmers, including the supply of fresh fruit bunches, so that they can contribute to biodiesel production," Andry added.
Currently, the biodiesel industry supply chain still relies on large corporations and has not involved independent farmer cooperatives. In fact, Indonesia has around 5.31 million hectares of independent oil palm plantations that have the potential to produce 14.87 million MT of CPO per year, an amount sufficient to cover the needs of B40 biodiesel production. In addition, used cooking oil can also be an alternative source of biodiesel raw materials that until now have not been supported by subsidies from the Plantation Fund Management Agency.
The palm oil deficit also raises concerns about the scarcity and increase in cooking oil prices. The situation that occurred in 2022-2023 is feared to happen again. In fact, the Fixed Retail Price (HET) for subsidized cooking oil "Our Oil" has increased from IDR 14,000 to IDR 18,000 per liter in November 2024. Infosawit
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Over 320,000 litres of crude palm oil worth more than RM1.3mil seized in Johor
KULAI: Some 325,400 litres of crude palm oil worth more than RM1.3mil have been seized during a raid at an illegal palm oil processing and storage premise in Air Bemban here.
Johor police chief Comm Datuk M Kumar said that a joint operation was carried out between the Marine Police Region II and southern region Malaysia Palm Oil Board (MPOB) at around 10am on Thursday (Feb 6) morning.
“The teams inspected an unnumbered premise that has become a store to keep and process palm oil. A 46-year-old local man was also detained at the scene,” he said in a statement here on Friday (Feb 7).
Comm Kumar added they also made several seizures at the location including 171 IBC tanks filled with palm oil valued at RM427,500.
He said the teams also found another 52 empty IBC tanks, four skid tanks, a trailer tank, two gallon tanks, two forklifts and three hoses at the scene as well.
“The total seized crude palm oil is 325,400 litres with an estimated value of more than RM1.3mil,” he said adding that the total value of all the seized items was worth more than RM2.4mil.
Comm Kumar also said that the suspect and the seized items have been handed over to MPOB for further investigation. The StarMY
India's push for self-reliance in palm oil gets a boost with NMEO-OP
From packaged foods to personal care products, palm oil is an irreplaceable ingredient that makes modern life possible. Hence, as a country that is the world’s biggest importer of crude edible palm oil and accounts for 38 per cent of global palm oil consumption, achieving self-sufficiency in palm oil production is not only essential for reducing the considerable foreign exchange burden but also for enhancing sustainability in palm oil consumption. It is through the launch of the National Mission on Edible Oil - Oil Palm (NMEO-OP) in 2021 that India kickstarted its crucial journey towards self-reliance in edible oils.
With its comprehensive framework, NMEO-OP aims to enhance domestic production while securing farmers’ livelihoods. The mission outlines a farmer-centric pathway to increase palm oil production sustainably through tools and incentives that make oil palm cultivation a viable and profitable endeavour for farmers, the industry, and the nation.
Sowing the seeds of farmers’ prosperity
The well-structured guidelines of NMEO-OP have made oil palm cultivation particularly attractive for India’s small-scale farmers, with a special focus on subsidies, sustainability, and livelihood security.
Farmers are encouraged to utilise degraded and wasteland for oil palm cultivation, optimising land use to transform barren plots into sources of consistent income. While oil palm cultivation is synonymous with deforestation in other parts of the world, the Indian model ensures that domestic palm oil production is environmentally friendly and can be sustained in the long term. Business Standard
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Sunflower, soyabean oils gaining market in India over pricey palm oil
Palm oil imports down 24 per cent in the first two months of oil year 2024-25
As palm oil has turned expensive over soft oils in the past 4-5 months, domestic consumers in India are shifting to alternatives such as sunflower and soyabean oil. Businessline
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GAPKI asks expanded oil palm oil plantations to meet B50-B100 mandate by 2045
The Indonesian Palm Oil Association (GAPKI) says that Indonesia needs to have extended oil palm plantations to meet the needs of the mandatory program of mixing fuel oil (BBM) and biofuel (BBN) by 50 percent or B50 up to B100.
Extensification of oil palm plantations is the expansion of agricultural areas into previously unused areas to increase production from the resulting products.
Edi Suhardi, Head of GAPKI’s Positive Campaign Division, said that palm oil exports have begun to be disrupted when they have to fulfill the B40 mandate or obligation. Therefore, palm oil supply will not be sufficient if it has to fulfill the supply for B50.
“Palm oil production in Indonesia has stagnated at around 50 million tons per year. If it is increased to B50, it can only be done through extensification,” Edi said in a discussion in Jakarta on Wednesday, February 5, 2025.
Edi said that increasing palm oil supply would take a long time if it was only done by increasing plant productivity or intensification.
To increase production growth using the intensification method, it takes at least five to 10 years to achieve maximum results.
“Because oil palm is not like rice or corn which can bear fruit in a few months. With oil palm, it takes at least 5 years before productivity increases,” he said.
Therefore, oil palm land extension is needed in order to achieve the B100 target in 2045, he added.
“Because B100 requires palm oil production of up to 100 million tons per year or twice the current amount,” he concluded. Indonesia Business Post
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Surge in legal land clearing pushes up Indonesia deforestation rate in 2024
- Indonesia’s deforestation increased in 2024 to its highest level since 2021, with forest area four times the size of Jakarta lost; 97% of this occurred within legal concessions, highlighting a shift from illegal to legal deforestation.
- More than half of the forest loss affected critical habitats for threatened species like orangutans, tigers and elephants, particularly in Borneo and Sumatra.
- Key industries driving deforestation include palm oil, pulpwood, and nickel mining, with significant deforestation in Kalimantan, Sumatra and Papua; a new pulp mill in Kalimantan in particular may be driving aggressive land clearing.
- Despite an existing moratorium on new forest-clearance permits, there’s no protection for forests within existing concessions, allowing continued deforestation, and spurring calls for stronger policies to safeguard remaining natural forests.
The country lost 261,575 hectares (646,366 acres) of forests, an area four times the size of Jakarta. That’s up 1.6% from 2023, according to data from environmental NGO Auriga Nusantara, which has been monitoring the country’s forest cover for years.
“While it’s only 4,000 hectares [nearly 10,000 acres] of increase [in forest loss], it’s still a worrying trend,” Auriga Nusantara director Timer Manurung told Mongabay. “At a time when natural forests [in Indonesia] keep shrinking, this number is still significant.”
This increase after years of declining deforestation shows how the government has failed to protect the country’s remaining forests, estimated at less than 90 million hectares (222 million acres), according to official data, Timer said.
While the government has issued a number of forest protection policies, they’re aimed mainly at restricting the issuance of new concessions for plantations and other commercial activities that involve clearing forests. But there’s no policy to protect the remaining stands of forest that lie within existing concessions that have already been granted by the government, Timer said.
In fact, the government incentivizes companies to clear forests within their concessions once they have the permits to do so, and punishes them for not doing so fast enough by rescinding the concessions and awarding them to other developers.
As a result, there’s been a noticeable shift in the deforestation trend: from illegal deforestation that occurs outside concessions, to legal deforestation inside concessions, permitted and encouraged by the government, Timer said.
The shift has been stark: 97% of the deforestation that Auriga Nusantara recorded in 2024 occurred within legal areas, such as concessions and infrastructure projects. Mongabay
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Palm Oil Biodiesel
Mandatory B40 Biodiesel Policy Risks Causing National Palm Oil Deficit
InfoSAWIT, JAKARTA – The B40 biodiesel development policy that has been implemented since early 2025 is considered to have a high risk of causing a national palm oil deficit. As a result, the supply of cooking oil for domestic food needs has the potential to be disrupted. This is due to national palm oil production which is projected to fall by 5.1% this year. The decline in production is due to the increasing number of oil palm plants that have entered an unproductive age and require rejuvenation.
On the other hand, domestic demand for palm oil continues to increase along with the implementation of biodiesel policies and other national programs such as Free Nutritious Meals. However, biodiesel development should not be completed with the expansion of palm oil plantations that can trigger deforestation. Based on records from several community organizations, mixing 40% (B40) in biodiesel has the potential to require additional palm oil plantations of up to 138 thousand hectares. In fact, there are alternative solutions that the government can take without opening new land.
"We calculate that the need for CPO raw materials for the implementation of B40 can reach 14.8 million MT, up 31.3% compared to 2024. This will trigger a surge in domestic CPO demand, especially when the government is also running the Free Nutritious Meal program," said Head of the Advocacy Department of the Palm Oil Farmers Union (SPKS), Marselinus Andry in his statement to InfoSAWIT , Friday (7/2/2205).
The implementation of B40 is expected to increase the national biodiesel quota to 15.6 million kiloliters from the previous 12.98 million kiloliters in the B35 program. SPKS assesses that this policy has the potential to cause a national palm oil deficit of 1.04 million MT, due to the imbalance between domestic production and consumption.
The government is trying to ensure the availability of domestic industrial raw materials by tightening exports of palm oil mill effluent (POME), high acid palm oil residue (HAPOR), and used cooking oil (UCO). This policy is regulated in the Regulation of the Minister of Trade Number 2 of 2025 which came into effect on January 8, 2025. However, this policy is considered not to have resolved the root of the palm oil deficit problem, and has the potential to harm independent palm oil farmers who supply raw materials for palm oil factories.
"CPO production from independent palm oil farmers has great potential to meet domestic biodiesel needs. The government needs to regulate the supply chain from independent farmers, including the supply of fresh fruit bunches, so that they can contribute to biodiesel production," Andry added.
Currently, the biodiesel industry supply chain still relies on large corporations and has not involved independent farmer cooperatives. In fact, Indonesia has around 5.31 million hectares of independent oil palm plantations that have the potential to produce 14.87 million MT of CPO per year, an amount sufficient to cover the needs of B40 biodiesel production. In addition, used cooking oil can also be an alternative source of biodiesel raw materials that until now have not been supported by subsidies from the Plantation Fund Management Agency.
The palm oil deficit also raises concerns about the scarcity and increase in cooking oil prices. The situation that occurred in 2022-2023 is feared to happen again. In fact, the Fixed Retail Price (HET) for subsidized cooking oil "Our Oil" has increased from IDR 14,000 to IDR 18,000 per liter in November 2024. Infosawit
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Over 320,000 litres of crude palm oil worth more than RM1.3mil seized in Johor
KULAI: Some 325,400 litres of crude palm oil worth more than RM1.3mil have been seized during a raid at an illegal palm oil processing and storage premise in Air Bemban here.
Johor police chief Comm Datuk M Kumar said that a joint operation was carried out between the Marine Police Region II and southern region Malaysia Palm Oil Board (MPOB) at around 10am on Thursday (Feb 6) morning.
“The teams inspected an unnumbered premise that has become a store to keep and process palm oil. A 46-year-old local man was also detained at the scene,” he said in a statement here on Friday (Feb 7).
Comm Kumar added they also made several seizures at the location including 171 IBC tanks filled with palm oil valued at RM427,500.
He said the teams also found another 52 empty IBC tanks, four skid tanks, a trailer tank, two gallon tanks, two forklifts and three hoses at the scene as well.
“The total seized crude palm oil is 325,400 litres with an estimated value of more than RM1.3mil,” he said adding that the total value of all the seized items was worth more than RM2.4mil.
Comm Kumar also said that the suspect and the seized items have been handed over to MPOB for further investigation. The StarMY
February 06, 2025
RSPO prepares for next stage of sustainable palm oil production
The Roundtable on Sustainable Palm Oil (RSPO), a global standards and governance body, is advocating for stronger regulations and frameworks, and taking action to plug supply chain and traceability interruptions.
According to RSPO’s Impact Report 2024, the certified palm oil area across the globe now spans 5.2 million hectares, stretching across 23 countries – a figure that grew by 263,028 hectares in 2023. RSPO certification has conserved 466,609 hectares, an area of land 19 times the size of Kuala Lumpur. In addition, remediation covers an area twice the size of Mumbai, totalling 112,954 hectares.
Its latest data shows that in 2023, RSPO credits worth $7 million (€6.7m) directly benefited 85 certified independent smallholder groups. Nine RSPO community outreach and engagement programmes are ongoing in seven countries and the organisation works with over 200 local grassroots organisations.
In its Impact Report 2024, which marks its 20th anniversary, RSPO details its future-looking plans to create a global partnership that makes palm oil sustainable by considering its impact on people, the planet, and prosperity.
Kamal Prakash Seth, global palm oil lead for the World Wildlife Fund (WWF), one of the founding members of RSPO, said: “For the next 20 years, we want to see more robust global regulations that promote a responsible palm oil industry.
“We want to see supply chain actors go beyond certification initiatives like a verified supply chain, ensuring palm oil production is free from deforestation conversion and human rights violations.”
Implementing a theory of change
After celebrating its 20th anniversary, RSPO is now turning its attention to upcoming challenges and its vision for the next era of sustainable palm oil development. In the coming years, RSPO is calling for more robust national regulations and frameworks to bolster the landscape surrounding sustainable palm oil production.
In 2023, RSPO modified its Theory of Change (ToC) to offer increased clarity and purpose to the organisation and its members’ required actions, strategies, and output. The updated ToC will move away from a cause-and-effect model as RSPO seeks to better reflect the interconnected pathways that successfully achieve sustainable palm oil impacts and changes.
In 2023, 26 new RSPO Smallholder Support Fund (RSSF) projects were funded to benefit 4,787 new independent smallholders (ISHs) worldwide in six countries. As of December 2023, over 164,000 smallholders across 15 countries were RSPO certified.
Indonesia accounts for more than 70% of this figure, with almost 100,000 scheme smallholders and over 25,000 ISHs. Papua New Guinea follows, with nearly 19,000 scheme smallholders, and then Thailand, at over 7,000 ISHs.
Filling supply chain and traceability gaps Ingredients Network
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Uncovering the Deforestation, Mismanagement, and Funders Behind a Malaysian Oil Palm Plantation: Low Choon Chyuan
After being tipped off about unsustainable logging at a state-run oil palm plantation, former Rainforest Investigations Network (RIN) fellow Low Choon Chyuan started a year-long investigation during which he uncovered “the failure of the plantation business, the environmental impacts, and how they got multiple loans from a local bank.”
“The investigation exposed the structural weaknesses in Malaysia’s forest management,” Low explained. “Despite various environmental commitments and promises given by the local palm oil industry, this case proved that poor enforcement and monitoring by the government, and the inconsistencies among different ministries in the government, has enabled bad actors to act with impunity.”
In 2015, state-owned company Perbadanan Kemajuan Negeri Pahang (PKNP) started planting oil palms in Hulu Tembeling, Jerantut, Pahang. The site is near Taman Negara National Park, a dense mature forest with rich, but fragile, biodiversity. When Low went on the ground in 2023, he saw how the large-scale project had been mismanaged. It seemed that mainly, the company had just used the project to clear the forest. GIJN
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Okomu Oil Palm FY PAT up 61.9%
Okomu Oil Palm full year profit after tax grew 61.9 per cent, the oil palm processor also reported a 73.4 per cent revenue growth, primarily driven by local sales which grew 65 per cent and contributed 74.8 per cent to total revenue. Graham Hefer, Managing Director of Okomu Oil Palm joins CNBC Africa for this discussion. CNBC Africa
RSPO prepares for next stage of sustainable palm oil production
The Roundtable on Sustainable Palm Oil (RSPO), a global standards and governance body, is advocating for stronger regulations and frameworks, and taking action to plug supply chain and traceability interruptions.
According to RSPO’s Impact Report 2024, the certified palm oil area across the globe now spans 5.2 million hectares, stretching across 23 countries – a figure that grew by 263,028 hectares in 2023. RSPO certification has conserved 466,609 hectares, an area of land 19 times the size of Kuala Lumpur. In addition, remediation covers an area twice the size of Mumbai, totalling 112,954 hectares.
Its latest data shows that in 2023, RSPO credits worth $7 million (€6.7m) directly benefited 85 certified independent smallholder groups. Nine RSPO community outreach and engagement programmes are ongoing in seven countries and the organisation works with over 200 local grassroots organisations.
In its Impact Report 2024, which marks its 20th anniversary, RSPO details its future-looking plans to create a global partnership that makes palm oil sustainable by considering its impact on people, the planet, and prosperity.
Kamal Prakash Seth, global palm oil lead for the World Wildlife Fund (WWF), one of the founding members of RSPO, said: “For the next 20 years, we want to see more robust global regulations that promote a responsible palm oil industry.
“We want to see supply chain actors go beyond certification initiatives like a verified supply chain, ensuring palm oil production is free from deforestation conversion and human rights violations.”
Implementing a theory of change
After celebrating its 20th anniversary, RSPO is now turning its attention to upcoming challenges and its vision for the next era of sustainable palm oil development. In the coming years, RSPO is calling for more robust national regulations and frameworks to bolster the landscape surrounding sustainable palm oil production.
In 2023, RSPO modified its Theory of Change (ToC) to offer increased clarity and purpose to the organisation and its members’ required actions, strategies, and output. The updated ToC will move away from a cause-and-effect model as RSPO seeks to better reflect the interconnected pathways that successfully achieve sustainable palm oil impacts and changes.
In 2023, 26 new RSPO Smallholder Support Fund (RSSF) projects were funded to benefit 4,787 new independent smallholders (ISHs) worldwide in six countries. As of December 2023, over 164,000 smallholders across 15 countries were RSPO certified.
Indonesia accounts for more than 70% of this figure, with almost 100,000 scheme smallholders and over 25,000 ISHs. Papua New Guinea follows, with nearly 19,000 scheme smallholders, and then Thailand, at over 7,000 ISHs.
Filling supply chain and traceability gaps Ingredients Network
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Uncovering the Deforestation, Mismanagement, and Funders Behind a Malaysian Oil Palm Plantation: Low Choon Chyuan
After being tipped off about unsustainable logging at a state-run oil palm plantation, former Rainforest Investigations Network (RIN) fellow Low Choon Chyuan started a year-long investigation during which he uncovered “the failure of the plantation business, the environmental impacts, and how they got multiple loans from a local bank.”
“The investigation exposed the structural weaknesses in Malaysia’s forest management,” Low explained. “Despite various environmental commitments and promises given by the local palm oil industry, this case proved that poor enforcement and monitoring by the government, and the inconsistencies among different ministries in the government, has enabled bad actors to act with impunity.”
In 2015, state-owned company Perbadanan Kemajuan Negeri Pahang (PKNP) started planting oil palms in Hulu Tembeling, Jerantut, Pahang. The site is near Taman Negara National Park, a dense mature forest with rich, but fragile, biodiversity. When Low went on the ground in 2023, he saw how the large-scale project had been mismanaged. It seemed that mainly, the company had just used the project to clear the forest. GIJN
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Okomu Oil Palm FY PAT up 61.9%
Okomu Oil Palm full year profit after tax grew 61.9 per cent, the oil palm processor also reported a 73.4 per cent revenue growth, primarily driven by local sales which grew 65 per cent and contributed 74.8 per cent to total revenue. Graham Hefer, Managing Director of Okomu Oil Palm joins CNBC Africa for this discussion. CNBC Africa
February 05, 2025
Indonesia to Implement B50 Palm Oil Biodiesel Mandate Next Year
Jakarta. Indonesia is sticking to the plan of distributing biodiesel with higher palm oil content starting in 2026.
Indonesia has just begun implementing the B40 mandate early this year. The B40 is a type of biodiesel blend with 40 percent palm oil content and 60 percent diesel fuel. This marks an increase from the B35 mandate that was in place for two years. President Prabowo Subianto wants Indonesia to be self-sufficient in its energy supply. With a higher biodiesel mandate, the world’s largest palm oil producer Indonesia can import less diesel.
“We are trying to implement a B50 mandate in 2026. If we could do that, hopefully, we would no longer have to import diesel. This is part of us trying to reach energy self-sufficiency,” Energy Minister Bahlil Lahadalia told reporters in Jakarta on Monday.
The ministry data shows that Indonesia produced 13.15 million kiloliters of biodiesel throughout 2024, far exceeding the targeted 11.3 million kiloliters. Indonesia also managed to save about $9.33 billion in foreign exchange as the country cut down its diesel import thanks to the B35 policy. Indonesia’s biodiesel production totaled 3.42 million kiloliters in 2017, during which the palm oil content stood at 20 percent. Production eventually soared over the years as the palm oil content grew.
Indonesia is set to produce around 15.6 million kiloliters of biodiesel in 2025. According to government estimates, Indonesia will be able to save at least Rp 147.5 trillion (approximately $9 billion) in foreign exchange this year with the B40 mandate now in place. The policy is expected to bring down diesel imports to 4.6 million kiloliters.
Not long ago, the government revealed that they would deploy a team starting this week to keep an eye on the distributed B40 biodiesel. This watchdog aims to make sure that the circulating biodiesel really has a 40 percent palm oil share. Jakarta Globe
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Indonesia’s CPO export levy hike will make Malaysian crude palm oil more competitive: Experts
PETALING JAYA: Industry experts opine that an increase in Indonesia’s crude palm oil (CPO) export levy will enhance demand for Malaysian CPO, rendering it more competitively priced.
According to TA Securities, demand for Malaysian palm oil could rise if Indonesia implements its plan to raise the export levy to support a higher biodiesel usage mandate.
The research house said that raising the export levy to 10% would increase the price of Indonesian CPO by US$26.49 per tonne, making it even more expensive than Malaysian palm oil. It noted that the price of palm oil from Indonesia currently stands at a premium of US$146.30 per tonne compared to Malaysia’s.
“We believe that the relatively high Indonesian CPO export tax and duty could drive demand towards Malaysian CPO, supporting its price and market share,“ it said.
Indonesia imposes an export levy on CPO and other palm oil products to fund its biodiesel programme, specifically the B40 mandate, which aims to increase the blend of palm-based biofuel in diesel to 40%.
In December 2024, the Indonesian government announced plans to raise the CPO export levy from 7.5% to 10% to support higher subsidies for the biodiesel programme. However, the implementation of the B40 mandate has faced delays, and industry observers anticipate a gradual rollout due to funding challenges and technical hurdles. The SunMY
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Prabowo's Palm Oil Expansion Policy Draws Criticism, Potential to Worsen Social and Environmental Crisis
InfoSAWIT, JAKARTA – The first hundred days of President Prabowo Subianto’s administration have been marked by policies that emphasize food and energy security as top priorities. One of the major plans proposed is the expansion of 20 million hectares of oil palm plantations to support food and energy independence. However, this policy has drawn criticism because it is considered to be at risk of worsening the social and environmental crisis.
This palm oil expansion plan is feared to accelerate deforestation, worsen agrarian conflicts, and ignore the rights of workers and indigenous peoples. These concerns have become increasingly prominent after the meeting between President Prabowo and Malaysian Prime Minister Anwar Ibrahim on January 27, 2025. The meeting discussed economic cooperation, including in the palm oil sector. However, according to TuK INDONESIA and Transnational Palm Oil Labor Solidarity (TPOLS), the two leaders' discussions did not sufficiently pay attention to the environmental and social impacts of the palm oil industry expansion.
In the Banking on Biodiversity Collapse 2024 report released by Forests & Finance, it is stated that more than 50 major world banks are still providing funding to sectors at risk of destroying tropical forests, especially in Indonesia and Malaysia. In the period 2016 to June 2024, a total of USD 89.17 billion or around IDR 1,289.59 trillion in credit has been channeled to projects directly related to deforestation, land conversion, and violations of indigenous peoples' rights.
The palm oil sector is a major contributor to the economy, but it is also a major driver of tropical forest loss and land grabbing. Amid global pressure for sustainability, the European Union has implemented the European Union Deforestation Regulation (EUDR), which bans the import of products from deforestation. If palm oil expansion is not managed properly, Indonesia and Malaysia risk losing access to the EU market, which is subject to stringent sustainability standards. InfoSawit
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Another restaurant chain takes a stance against seed oils
Full-service True Food Kitchen is eliminating seed oils across its 46 locations, transitioning to avocado and olive oil.
True Food Kitchen announced Tuesday that its menu is going 100% seed-oil free across all 46 locations.
The Scottsdale, Arizona-based full-service chain is transitioning to heart-healthy avocado and olive oil for all its menu applications. Industrial seed oils such as canola, sunflower, corn and soybean have gotten a bad rap lately for causing inflammation in the body.
For health-focused True Food Kitchen, the transition began in 2022 when the team committed to cooking with only avocado and olive oils, then gradually eliminated seed oils from 98% of the menu. With 100-plus items to test, it took another couple of years to convert the remaining 2%.
“Most people don’t realize how pervasive seed oils are in everyday ingredients and eliminating them meant reevaluating hundreds of items across our kitchens. It was a massive undertaking, but it was worth every step to deliver cleaner, better meals to our guests,” said Matthew Padilla, head of culinary at True Food Kitchen. Restaurant Business
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Decode the link between Palm Oil and Cancer with Science
Dr. Aman Rastogi, MCh Surgical Oncology, Manipal Hospitals, Delhi.
One in two people will develop some form of cancer during their lifetime, sparking fear and anxiety. A cancer diagnosis can be life-changing and leads people to seek out potential triggers. One ingredient that has come under scrutiny is palm oil. However, before drawing conclusions about the world’s most widely used edible oil, it is crucial that we examine the scientific evidence, says Dr. Aman Rastogi, MCh Surgical Oncology, Manipal Hospitals, Delhi.
Palm oil is used extensively in food production and cooking worldwide is undeniable. Beyond its functionality in food, researchers have studied palm oil extensively, recognising its numerous nutritional benefits. Its rise in popularity is also linked to global policy changes. For instance, the ban of U.S. Food and Drug Administration (FDA) on trans-fatty acids (TFA) in 2015 and the World Health Organization’s 2018 recommendations against TFA prompted the food industry to turn to palm oil as a stable and semi-solid alternative in ultra-processed foods.
Palm Oil: A Potential Anti-Cancer Agent
Red palm oil contains several nutrients that may offer protective benefits against cancer. It is particularly rich in carotenoids—compounds that the body converts into vitamin A—which act as powerful antioxidants, reducing damage caused by free radicals. These free radicals can harm cells and contribute to cancer development.
Palm oil is also a valuable source of tocotrienols, a form of vitamin E with promising anti-cancer properties. Research suggests that tocotrienols can slow the growth of cancer cells, trigger their death, and prevent the formation of new blood vessels that tumors need to grow. Express News
Indonesia to Implement B50 Palm Oil Biodiesel Mandate Next Year
Jakarta. Indonesia is sticking to the plan of distributing biodiesel with higher palm oil content starting in 2026.
Indonesia has just begun implementing the B40 mandate early this year. The B40 is a type of biodiesel blend with 40 percent palm oil content and 60 percent diesel fuel. This marks an increase from the B35 mandate that was in place for two years. President Prabowo Subianto wants Indonesia to be self-sufficient in its energy supply. With a higher biodiesel mandate, the world’s largest palm oil producer Indonesia can import less diesel.
“We are trying to implement a B50 mandate in 2026. If we could do that, hopefully, we would no longer have to import diesel. This is part of us trying to reach energy self-sufficiency,” Energy Minister Bahlil Lahadalia told reporters in Jakarta on Monday.
The ministry data shows that Indonesia produced 13.15 million kiloliters of biodiesel throughout 2024, far exceeding the targeted 11.3 million kiloliters. Indonesia also managed to save about $9.33 billion in foreign exchange as the country cut down its diesel import thanks to the B35 policy. Indonesia’s biodiesel production totaled 3.42 million kiloliters in 2017, during which the palm oil content stood at 20 percent. Production eventually soared over the years as the palm oil content grew.
Indonesia is set to produce around 15.6 million kiloliters of biodiesel in 2025. According to government estimates, Indonesia will be able to save at least Rp 147.5 trillion (approximately $9 billion) in foreign exchange this year with the B40 mandate now in place. The policy is expected to bring down diesel imports to 4.6 million kiloliters.
Not long ago, the government revealed that they would deploy a team starting this week to keep an eye on the distributed B40 biodiesel. This watchdog aims to make sure that the circulating biodiesel really has a 40 percent palm oil share. Jakarta Globe
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Indonesia’s CPO export levy hike will make Malaysian crude palm oil more competitive: Experts
PETALING JAYA: Industry experts opine that an increase in Indonesia’s crude palm oil (CPO) export levy will enhance demand for Malaysian CPO, rendering it more competitively priced.
According to TA Securities, demand for Malaysian palm oil could rise if Indonesia implements its plan to raise the export levy to support a higher biodiesel usage mandate.
The research house said that raising the export levy to 10% would increase the price of Indonesian CPO by US$26.49 per tonne, making it even more expensive than Malaysian palm oil. It noted that the price of palm oil from Indonesia currently stands at a premium of US$146.30 per tonne compared to Malaysia’s.
“We believe that the relatively high Indonesian CPO export tax and duty could drive demand towards Malaysian CPO, supporting its price and market share,“ it said.
Indonesia imposes an export levy on CPO and other palm oil products to fund its biodiesel programme, specifically the B40 mandate, which aims to increase the blend of palm-based biofuel in diesel to 40%.
In December 2024, the Indonesian government announced plans to raise the CPO export levy from 7.5% to 10% to support higher subsidies for the biodiesel programme. However, the implementation of the B40 mandate has faced delays, and industry observers anticipate a gradual rollout due to funding challenges and technical hurdles. The SunMY
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Prabowo's Palm Oil Expansion Policy Draws Criticism, Potential to Worsen Social and Environmental Crisis
InfoSAWIT, JAKARTA – The first hundred days of President Prabowo Subianto’s administration have been marked by policies that emphasize food and energy security as top priorities. One of the major plans proposed is the expansion of 20 million hectares of oil palm plantations to support food and energy independence. However, this policy has drawn criticism because it is considered to be at risk of worsening the social and environmental crisis.
This palm oil expansion plan is feared to accelerate deforestation, worsen agrarian conflicts, and ignore the rights of workers and indigenous peoples. These concerns have become increasingly prominent after the meeting between President Prabowo and Malaysian Prime Minister Anwar Ibrahim on January 27, 2025. The meeting discussed economic cooperation, including in the palm oil sector. However, according to TuK INDONESIA and Transnational Palm Oil Labor Solidarity (TPOLS), the two leaders' discussions did not sufficiently pay attention to the environmental and social impacts of the palm oil industry expansion.
In the Banking on Biodiversity Collapse 2024 report released by Forests & Finance, it is stated that more than 50 major world banks are still providing funding to sectors at risk of destroying tropical forests, especially in Indonesia and Malaysia. In the period 2016 to June 2024, a total of USD 89.17 billion or around IDR 1,289.59 trillion in credit has been channeled to projects directly related to deforestation, land conversion, and violations of indigenous peoples' rights.
The palm oil sector is a major contributor to the economy, but it is also a major driver of tropical forest loss and land grabbing. Amid global pressure for sustainability, the European Union has implemented the European Union Deforestation Regulation (EUDR), which bans the import of products from deforestation. If palm oil expansion is not managed properly, Indonesia and Malaysia risk losing access to the EU market, which is subject to stringent sustainability standards. InfoSawit
--------
Another restaurant chain takes a stance against seed oils
Full-service True Food Kitchen is eliminating seed oils across its 46 locations, transitioning to avocado and olive oil.
True Food Kitchen announced Tuesday that its menu is going 100% seed-oil free across all 46 locations.
The Scottsdale, Arizona-based full-service chain is transitioning to heart-healthy avocado and olive oil for all its menu applications. Industrial seed oils such as canola, sunflower, corn and soybean have gotten a bad rap lately for causing inflammation in the body.
For health-focused True Food Kitchen, the transition began in 2022 when the team committed to cooking with only avocado and olive oils, then gradually eliminated seed oils from 98% of the menu. With 100-plus items to test, it took another couple of years to convert the remaining 2%.
“Most people don’t realize how pervasive seed oils are in everyday ingredients and eliminating them meant reevaluating hundreds of items across our kitchens. It was a massive undertaking, but it was worth every step to deliver cleaner, better meals to our guests,” said Matthew Padilla, head of culinary at True Food Kitchen. Restaurant Business
---------
Decode the link between Palm Oil and Cancer with Science
Dr. Aman Rastogi, MCh Surgical Oncology, Manipal Hospitals, Delhi.
One in two people will develop some form of cancer during their lifetime, sparking fear and anxiety. A cancer diagnosis can be life-changing and leads people to seek out potential triggers. One ingredient that has come under scrutiny is palm oil. However, before drawing conclusions about the world’s most widely used edible oil, it is crucial that we examine the scientific evidence, says Dr. Aman Rastogi, MCh Surgical Oncology, Manipal Hospitals, Delhi.
Palm oil is used extensively in food production and cooking worldwide is undeniable. Beyond its functionality in food, researchers have studied palm oil extensively, recognising its numerous nutritional benefits. Its rise in popularity is also linked to global policy changes. For instance, the ban of U.S. Food and Drug Administration (FDA) on trans-fatty acids (TFA) in 2015 and the World Health Organization’s 2018 recommendations against TFA prompted the food industry to turn to palm oil as a stable and semi-solid alternative in ultra-processed foods.
Palm Oil: A Potential Anti-Cancer Agent
Red palm oil contains several nutrients that may offer protective benefits against cancer. It is particularly rich in carotenoids—compounds that the body converts into vitamin A—which act as powerful antioxidants, reducing damage caused by free radicals. These free radicals can harm cells and contribute to cancer development.
Palm oil is also a valuable source of tocotrienols, a form of vitamin E with promising anti-cancer properties. Research suggests that tocotrienols can slow the growth of cancer cells, trigger their death, and prevent the formation of new blood vessels that tumors need to grow. Express News
February 04, 2025
After 100 days, little to show for Indonesia President Prabowo’s energy, food security plans
Prabowo’s ambitious vows of energy and food security have yet to materialize in actionable, short-term rules, with the administration’s stance on the energy transition and agricultural self-sufficiency described as lacking clear direction.
JAKARTA – President Prabowo Subianto kicked off his term with promises to make Indonesia less dependent on fuel and food imports by ramping up renewable energy supply and building massive agricultural estates, sparking hope but also skepticism as predecessors have tried the same, and failed.
One hundred days into his presidency, Prabowo’s ambitious vows of energy and food security have yet to materialize in actionable, short-term rules, with the administration’s stance on the energy transition and agricultural self-sufficiency described as lacking clear direction.
At the last Group of Twenty (G20) meeting, Prabowo outlined an ambitious plan to phase out all coal and fossil-fuel power plants within 15 years and to develop over 75 gigawatts (GW) of renewable energy capacity, but experts say that plan lacks details.
“Specifically, [we question] how to achieve the target of 23 percent renewables in the energy mix in 2025 and achieve 100 percent renewable energy in the next 10 years,” Fabby Tumiwa, executive director of the Institute for Essential Services Reform (IESR), said in a statement on Jan. 22.
So far, the government has been focusing on long-term targets, pushing for state-owned electricity company PLN’s latest Electricity Procurement Business Plan (RUPTL), for instance, to be dominated by renewables.
“The government must prepare more strategic planning, like expediting the establishment of 9 GW of renewable energy capacity this year,” Fabby said.
Investors eagerly await the release of the new RUPTL, which was meant to be published last year under then-president Joko “Jokowi” Widodo’s leadership but has yet to materialize.
Fabby urged the government to immediately turn its commitment into actionable regulations and integrate them into various energy policies.
“The [National Electricity Master Plan (RUKN)], for example, still maintains the net-zero 2060 target instead of 2050 and peak emissions in 2035 instead of 2030, which is inconsistent with what the President has said. It also still contains plans to build coal-fired power plants until 2035.”
Read also: Past failures haunt govt’s new energy transition plans
The administration has taken some concrete steps toward achieving energy self-sufficiency: It launched the mandatory B40 program earlier this month and formed a task force for the acceleration of downstream industries and energy resilience.
It has also opted to boost domestic fuel oil production by redirecting a share of crude oil intended for export to processing into fuel at domestic refineries.
“Other [pending] decisions include the issuance of revised government regulations on national energy policies [KEN],” Ahmad Rahma Wardhana, a researcher at Gadjah Mada University’s (UGM) Center of Energy Studies, told The Jakarta Post on Jan. 22.
He expressed optimism that the new gross-split rule introduced by the Energy and Mineral Resources Ministry would increase investors’ appetite in Indonesia’s oil and gas industry.
However, Ahmad took issue with the government’s plan to convert 20 million hectares of forest land across Indonesia into agricultural land to produce food, energy and water for the country’s self-sufficiency efforts.
Forestry Minister Raja Juli Antoni said the Agriculture Ministry and the energy ministry would make use of the land, including by establishing several small food barns at large food estate projects.
“Extensification through land conversion is not the only solution, because there are other options, including increasing bioenergy productivity as well as utilizing waste from [agriculture and industries] as energy sources,” he said.
Read also: Massive costs, reforms await Prabowo full coal phase out plan The Jakarta Post
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Malaysian Palm Oil Benefits From Global Market Shifts
What’s going on here?
Malaysian palm oil futures have climbed higher for the fifth straight session, fueled by rising soyoil and crude oil prices as global markets shift.
What does this mean?
Malaysian palm oil futures are experiencing a surge influenced by various market dynamics. The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange rose by 1.96%, closing at 4,373 ringgit ($978.30) per metric ton. Over the last four sessions, it has gained 2.36%, driven by stronger soyoil futures from the Chicago Board of Trade and a rebound in energy markets globally. US trade tariffs have pressured soyoil prices, boosting palm oil’s appeal as a biodiesel feedstock amid higher crude oil prices. Meanwhile, the ringgit weakened by 0.45% against the US dollar, making Malaysian palm oil more attractive for foreign buyers. However, a drop in export volumes for January highlights the trade landscape's complexity.
Why should I care?
For markets: Shifting tides in the vegetable oil market.
With global markets in economic flux, palm oil has become a strong player in the vegetable oil sector. The rise in CPO prices reflects shifts in the supply-demand balance, influenced by strategic moves like Indonesia's export tax reduction. These changes, along with the recent Dalian Commodity Exchange closure, could affect trading activities and present new opportunities for investors watching agricultural commodities.
The bigger picture: Navigating global economic turbulence.
The significant changes in market forces, trade tensions, and currency fluctuations highlight a crucial time for palm oil in global trade. As Malaysia addresses export drops and seizes new opportunities, these developments might reshape economic strategies and impact broader trends in sustainable crop production and international trade agreements. Finimize
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Palm oil industry urged to shift to high-value products, cut reliance on crude exports
KUALA LUMPUR (4 Feb): Malaysia needs to shift to high-value products like oleochemicals and biodiesel rather than just relying on crude palm oil (CPO) exports without a solid value-added strategy, according to Paya Besar Member of Parliament Datuk Mohd Shahar Abdullah.
He said Indonesia, which has implemented a mandatory B35-B40 biodiesel policy since 2020 to stabilise domestic demand, has seen palm oil prices that are more stable compared to Malaysia, which depends 80% on crude exports.
Malaysia’s CPO price remains susceptible to sharp fluctuations and is easily influenced by global market speculation, he said during the debate on the motion of thanks for the royal address in the Dewan Rakyat on Tuesday.
According to Mohd Shahar, Malaysia is caught in the “volume versus value” dilemma.
Paya Besar Member of Parliament Datuk Mohd Shahar Abdullah says crude palm oil price remains susceptible to sharp fluctuations and is easily influenced by global market speculation.
KUALA LUMPUR (4 Feb): Malaysia needs to shift to high-value products like oleochemicals and biodiesel rather than just relying on crude palm oil (CPO) exports without a solid value-added strategy, according to Paya Besar Member of Parliament Datuk Mohd Shahar Abdullah.
He said Indonesia, which has implemented a mandatory B35-B40 biodiesel policy since 2020 to stabilise domestic demand, has seen palm oil prices that are more stable compared to Malaysia, which depends 80% on crude exports.
Malaysia’s CPO price remains susceptible to sharp fluctuations and is easily influenced by global market speculation, he said during the debate on the motion of thanks for the royal address in the Dewan Rakyat on Tuesday.
According to Mohd Shahar, Malaysia is caught in the “volume versus value” dilemma.
“Although exports to the European Union (EU) contributed only 14% of Malaysia’s total palm oil exports in 2023, the EU premium rate, on a pro-rata basis, is actually higher compared to that in the Indian and Chinese markets.
“Besides looking at India and China as volume markets, we need to view the EU as a volume market that offers high value. Moreover, the EU remains the main importer of palm kernel oil for the past five years,” he said.
Mohd Shahar, who is also the chairman of the Parliament’s Special Select Committee on Finance and Economy, also praised the government’s recent efforts to correct the perception and stigma of Malaysian palm oil in the EU and the US due to the EU Deforestation-Free Regulation (EUDR) and import ban on palm oil as biofuel.
“Promotion and communication efforts must be intensified all the way to the level of policy implementers, not just at the policymaker level,” he added. The EdgeMY
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Malaysia ensures sufficient workforce for palm oil plantations
KUALA LUMPUR: The Plantation and Commodities Ministry is committed to ensuring that all oil palm plantations have sufficient manpower, says its minister, Datuk Seri Johari Abdul Ghani.
He said as the world's second-largest palm oil producer, Malaysia ensures stable production remains unaffected.
Johari said commodity prices cannot be set by any party because they depend on supply and demand factors.
"If demand is high and production is low, prices will rise. Conversely, if there is excessive production but insufficient demand, prices will decrease.
"One key factor is ensuring that plantations have an adequate workforce. Without sufficient workers, ripe fruits will remain unharvested, affecting our ability to maximise output," he said during the ministers' question time in Dewan Rakyat today.
Johari was responding to a supplementary question from Edwin Banta (GPS–Selangau) regarding measures taken to address the decline in commodity prices, particularly for palm oil, and strategies to stabilise prices, increase demand and explore new markets. New Straits Times
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Palm oil industry urges govt to reconsider mandatory EPF contribution for foreign workers
PETALING JAYA: The government should reconsider its decision to mandate a 2% Employees Provident Fund (EPF) contribution for foreign workers, say palm oil industry players.
The group of 13 business associations affiliated with the palm oil supply chain said that while the 2% contribution may seem minimal, with an estimated 336,500 foreign workers employed in the plantation sector, the industry would collectively bear an additional cost of approximately RM137mil annually.
"Given the financial pressures already faced by the sector, we seek reconsideration of this policy to ensure that it does not inadvertently burden employers or foreign workers," said the group in a statement on Feb 4.
The group added that the Malaysian palm oil sector relied heavily on foreign labour, particularly for fieldwork, due to the persistent shortage of local workers.
"The introduction of mandatory EPF contributions adds new financial and administrative challenges, particularly for plantation companies already managing fluctuating global markets, sustainability compliance, and rising operational costs," it said.
The group also said that the high turnover rate of foreign workers in the industry posed significant administrative burdens.
"Many foreign workers do not stay in Malaysia for extended periods, making long-term savings through EPF less relevant for them.
"Managing these contributions for a transient workforce requires additional resources, which could divert focus from productivity and sustainability initiatives," the group said.
The associations also said that the new policy went against the EPF's primary design of long-term retirement savings and may not align with the financial needs of foreign workers.
"Most foreign workers are in Malaysia for a short-term employment cycle of two to four years and prioritize sending their earnings home to support their families.
"A mandatory EPF contribution reduces their take-home pay, which could discourage them from choosing Malaysia as a preferred employment destination," it said.
The group said that while it acknowledged the government’s intent to enhance worker welfare, it was essential to implement policies that were both fair and practical.
"We remain committed to collaborating with the government and relevant stakeholders to develop a balanced approach that ensures the continued growth of Malaysia’s palm oil sector while safeguarding the well-being of its workforce," it said. The StarMY
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Government of Sierra Leone and European Union sign € 35M Financing Agreement for "Sustainable Food and Agricultural Value Chains Development" Programme
Freetown, Sierra Leone: On 31 January 2025, the Government of Sierra Leone and the European Union signed a Financing Agreement for the "Sustainable Food and Agricultural Value Chains Development" Programme. This agreement represents a significant milestone in the cooperation between the EU and Sierra Leone, aimed at promoting agricultural development in the palm oil, cassava and infant food value chains.
The specific objectives of the programme are to:
Improve the sustainability, efficiency and inclusivity of the oil palm, cassava, and infant food value chains, through the use of climate-smart approaches in production and processing, while facilitating decent green job creation; and
Enhance the use of market opportunities by Sierra Leoneans, particularly women and youth who have participated in Technical and Vocational Education and Training (TVET) programmes.
This new agreement complements ongoing EU-Sierra Leone agricultural cooperation programmes focused on access to agricultural finance, rural infrastructure (feeder roads) and targeted support to the orange-fleshed sweet potato, pineapple, cashew and cocoa value chains.
In his remarks, H.E. Jacek Jankowski, the EU Ambassador to Sierra Leone emphasized the EU's commitment to supporting Sierra Leone's path to inclusive and sustainable growth. EUROPA
After 100 days, little to show for Indonesia President Prabowo’s energy, food security plans
Prabowo’s ambitious vows of energy and food security have yet to materialize in actionable, short-term rules, with the administration’s stance on the energy transition and agricultural self-sufficiency described as lacking clear direction.
JAKARTA – President Prabowo Subianto kicked off his term with promises to make Indonesia less dependent on fuel and food imports by ramping up renewable energy supply and building massive agricultural estates, sparking hope but also skepticism as predecessors have tried the same, and failed.
One hundred days into his presidency, Prabowo’s ambitious vows of energy and food security have yet to materialize in actionable, short-term rules, with the administration’s stance on the energy transition and agricultural self-sufficiency described as lacking clear direction.
At the last Group of Twenty (G20) meeting, Prabowo outlined an ambitious plan to phase out all coal and fossil-fuel power plants within 15 years and to develop over 75 gigawatts (GW) of renewable energy capacity, but experts say that plan lacks details.
“Specifically, [we question] how to achieve the target of 23 percent renewables in the energy mix in 2025 and achieve 100 percent renewable energy in the next 10 years,” Fabby Tumiwa, executive director of the Institute for Essential Services Reform (IESR), said in a statement on Jan. 22.
So far, the government has been focusing on long-term targets, pushing for state-owned electricity company PLN’s latest Electricity Procurement Business Plan (RUPTL), for instance, to be dominated by renewables.
“The government must prepare more strategic planning, like expediting the establishment of 9 GW of renewable energy capacity this year,” Fabby said.
Investors eagerly await the release of the new RUPTL, which was meant to be published last year under then-president Joko “Jokowi” Widodo’s leadership but has yet to materialize.
Fabby urged the government to immediately turn its commitment into actionable regulations and integrate them into various energy policies.
“The [National Electricity Master Plan (RUKN)], for example, still maintains the net-zero 2060 target instead of 2050 and peak emissions in 2035 instead of 2030, which is inconsistent with what the President has said. It also still contains plans to build coal-fired power plants until 2035.”
Read also: Past failures haunt govt’s new energy transition plans
The administration has taken some concrete steps toward achieving energy self-sufficiency: It launched the mandatory B40 program earlier this month and formed a task force for the acceleration of downstream industries and energy resilience.
It has also opted to boost domestic fuel oil production by redirecting a share of crude oil intended for export to processing into fuel at domestic refineries.
“Other [pending] decisions include the issuance of revised government regulations on national energy policies [KEN],” Ahmad Rahma Wardhana, a researcher at Gadjah Mada University’s (UGM) Center of Energy Studies, told The Jakarta Post on Jan. 22.
He expressed optimism that the new gross-split rule introduced by the Energy and Mineral Resources Ministry would increase investors’ appetite in Indonesia’s oil and gas industry.
However, Ahmad took issue with the government’s plan to convert 20 million hectares of forest land across Indonesia into agricultural land to produce food, energy and water for the country’s self-sufficiency efforts.
Forestry Minister Raja Juli Antoni said the Agriculture Ministry and the energy ministry would make use of the land, including by establishing several small food barns at large food estate projects.
“Extensification through land conversion is not the only solution, because there are other options, including increasing bioenergy productivity as well as utilizing waste from [agriculture and industries] as energy sources,” he said.
Read also: Massive costs, reforms await Prabowo full coal phase out plan The Jakarta Post
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Malaysian Palm Oil Benefits From Global Market Shifts
What’s going on here?
Malaysian palm oil futures have climbed higher for the fifth straight session, fueled by rising soyoil and crude oil prices as global markets shift.
What does this mean?
Malaysian palm oil futures are experiencing a surge influenced by various market dynamics. The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange rose by 1.96%, closing at 4,373 ringgit ($978.30) per metric ton. Over the last four sessions, it has gained 2.36%, driven by stronger soyoil futures from the Chicago Board of Trade and a rebound in energy markets globally. US trade tariffs have pressured soyoil prices, boosting palm oil’s appeal as a biodiesel feedstock amid higher crude oil prices. Meanwhile, the ringgit weakened by 0.45% against the US dollar, making Malaysian palm oil more attractive for foreign buyers. However, a drop in export volumes for January highlights the trade landscape's complexity.
Why should I care?
For markets: Shifting tides in the vegetable oil market.
With global markets in economic flux, palm oil has become a strong player in the vegetable oil sector. The rise in CPO prices reflects shifts in the supply-demand balance, influenced by strategic moves like Indonesia's export tax reduction. These changes, along with the recent Dalian Commodity Exchange closure, could affect trading activities and present new opportunities for investors watching agricultural commodities.
The bigger picture: Navigating global economic turbulence.
The significant changes in market forces, trade tensions, and currency fluctuations highlight a crucial time for palm oil in global trade. As Malaysia addresses export drops and seizes new opportunities, these developments might reshape economic strategies and impact broader trends in sustainable crop production and international trade agreements. Finimize
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Palm oil industry urged to shift to high-value products, cut reliance on crude exports
KUALA LUMPUR (4 Feb): Malaysia needs to shift to high-value products like oleochemicals and biodiesel rather than just relying on crude palm oil (CPO) exports without a solid value-added strategy, according to Paya Besar Member of Parliament Datuk Mohd Shahar Abdullah.
He said Indonesia, which has implemented a mandatory B35-B40 biodiesel policy since 2020 to stabilise domestic demand, has seen palm oil prices that are more stable compared to Malaysia, which depends 80% on crude exports.
Malaysia’s CPO price remains susceptible to sharp fluctuations and is easily influenced by global market speculation, he said during the debate on the motion of thanks for the royal address in the Dewan Rakyat on Tuesday.
According to Mohd Shahar, Malaysia is caught in the “volume versus value” dilemma.
Paya Besar Member of Parliament Datuk Mohd Shahar Abdullah says crude palm oil price remains susceptible to sharp fluctuations and is easily influenced by global market speculation.
KUALA LUMPUR (4 Feb): Malaysia needs to shift to high-value products like oleochemicals and biodiesel rather than just relying on crude palm oil (CPO) exports without a solid value-added strategy, according to Paya Besar Member of Parliament Datuk Mohd Shahar Abdullah.
He said Indonesia, which has implemented a mandatory B35-B40 biodiesel policy since 2020 to stabilise domestic demand, has seen palm oil prices that are more stable compared to Malaysia, which depends 80% on crude exports.
Malaysia’s CPO price remains susceptible to sharp fluctuations and is easily influenced by global market speculation, he said during the debate on the motion of thanks for the royal address in the Dewan Rakyat on Tuesday.
According to Mohd Shahar, Malaysia is caught in the “volume versus value” dilemma.
“Although exports to the European Union (EU) contributed only 14% of Malaysia’s total palm oil exports in 2023, the EU premium rate, on a pro-rata basis, is actually higher compared to that in the Indian and Chinese markets.
“Besides looking at India and China as volume markets, we need to view the EU as a volume market that offers high value. Moreover, the EU remains the main importer of palm kernel oil for the past five years,” he said.
Mohd Shahar, who is also the chairman of the Parliament’s Special Select Committee on Finance and Economy, also praised the government’s recent efforts to correct the perception and stigma of Malaysian palm oil in the EU and the US due to the EU Deforestation-Free Regulation (EUDR) and import ban on palm oil as biofuel.
“Promotion and communication efforts must be intensified all the way to the level of policy implementers, not just at the policymaker level,” he added. The EdgeMY
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Malaysia ensures sufficient workforce for palm oil plantations
KUALA LUMPUR: The Plantation and Commodities Ministry is committed to ensuring that all oil palm plantations have sufficient manpower, says its minister, Datuk Seri Johari Abdul Ghani.
He said as the world's second-largest palm oil producer, Malaysia ensures stable production remains unaffected.
Johari said commodity prices cannot be set by any party because they depend on supply and demand factors.
"If demand is high and production is low, prices will rise. Conversely, if there is excessive production but insufficient demand, prices will decrease.
"One key factor is ensuring that plantations have an adequate workforce. Without sufficient workers, ripe fruits will remain unharvested, affecting our ability to maximise output," he said during the ministers' question time in Dewan Rakyat today.
Johari was responding to a supplementary question from Edwin Banta (GPS–Selangau) regarding measures taken to address the decline in commodity prices, particularly for palm oil, and strategies to stabilise prices, increase demand and explore new markets. New Straits Times
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Palm oil industry urges govt to reconsider mandatory EPF contribution for foreign workers
PETALING JAYA: The government should reconsider its decision to mandate a 2% Employees Provident Fund (EPF) contribution for foreign workers, say palm oil industry players.
The group of 13 business associations affiliated with the palm oil supply chain said that while the 2% contribution may seem minimal, with an estimated 336,500 foreign workers employed in the plantation sector, the industry would collectively bear an additional cost of approximately RM137mil annually.
"Given the financial pressures already faced by the sector, we seek reconsideration of this policy to ensure that it does not inadvertently burden employers or foreign workers," said the group in a statement on Feb 4.
The group added that the Malaysian palm oil sector relied heavily on foreign labour, particularly for fieldwork, due to the persistent shortage of local workers.
"The introduction of mandatory EPF contributions adds new financial and administrative challenges, particularly for plantation companies already managing fluctuating global markets, sustainability compliance, and rising operational costs," it said.
The group also said that the high turnover rate of foreign workers in the industry posed significant administrative burdens.
"Many foreign workers do not stay in Malaysia for extended periods, making long-term savings through EPF less relevant for them.
"Managing these contributions for a transient workforce requires additional resources, which could divert focus from productivity and sustainability initiatives," the group said.
The associations also said that the new policy went against the EPF's primary design of long-term retirement savings and may not align with the financial needs of foreign workers.
"Most foreign workers are in Malaysia for a short-term employment cycle of two to four years and prioritize sending their earnings home to support their families.
"A mandatory EPF contribution reduces their take-home pay, which could discourage them from choosing Malaysia as a preferred employment destination," it said.
The group said that while it acknowledged the government’s intent to enhance worker welfare, it was essential to implement policies that were both fair and practical.
"We remain committed to collaborating with the government and relevant stakeholders to develop a balanced approach that ensures the continued growth of Malaysia’s palm oil sector while safeguarding the well-being of its workforce," it said. The StarMY
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Government of Sierra Leone and European Union sign € 35M Financing Agreement for "Sustainable Food and Agricultural Value Chains Development" Programme
Freetown, Sierra Leone: On 31 January 2025, the Government of Sierra Leone and the European Union signed a Financing Agreement for the "Sustainable Food and Agricultural Value Chains Development" Programme. This agreement represents a significant milestone in the cooperation between the EU and Sierra Leone, aimed at promoting agricultural development in the palm oil, cassava and infant food value chains.
The specific objectives of the programme are to:
Improve the sustainability, efficiency and inclusivity of the oil palm, cassava, and infant food value chains, through the use of climate-smart approaches in production and processing, while facilitating decent green job creation; and
Enhance the use of market opportunities by Sierra Leoneans, particularly women and youth who have participated in Technical and Vocational Education and Training (TVET) programmes.
This new agreement complements ongoing EU-Sierra Leone agricultural cooperation programmes focused on access to agricultural finance, rural infrastructure (feeder roads) and targeted support to the orange-fleshed sweet potato, pineapple, cashew and cocoa value chains.
In his remarks, H.E. Jacek Jankowski, the EU Ambassador to Sierra Leone emphasized the EU's commitment to supporting Sierra Leone's path to inclusive and sustainable growth. EUROPA
February 03, 2025
What American consumer goods is Canada targeting with counter-tariffs?
Prime Minister Justin Trudeau announced late Saturday the federal government will hit back against the U.S. after President Donald Trump launched a trade war this weekend with punitive tariffs on all Canadian goods.
Trump followed through on a months-long threat and is slapping a 25 per cent tariff on virtually all Canadian goods and a 10 per cent tariff on Canadian energy.
In retaliation, Canada will slap 25 per cent tariffs on $30 billion worth of American goods coming into Canada as of Tuesday. The tariffs will then be applied to another $125 billion worth of American imports in three weeks' time following a consultation period.
On Sunday, Ottawa released the full list of products that will be taxed starting on Tuesday.
The list includes some supply managed products that were given Canadian market access as concessions during the negotiation of the Canada-U.S.-Mexico Agreement (CUSMA) — but a government source said on background that the list does not amount to a full walk-back of those concessions at this point.
Here is a breakdown of what's included: CBC
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Southeast Asia in the crossfire of the US–China trade war
With rising tensions due to the international implications of the Chinese economy's imbalances and the re-escalation of the US-China trade war, ASEAN nations are recognising the need for unity to ensure their interests are considered by larger global powers. Supporting institutional structures like the Multi-Party Interim Appeal Arbitration Agreement, a substitute for the WTO dispute settlement process, can help safeguard against protectionism. ASEAN needs a coordinated policy strategy to defend the benefits from free and open trade, while also preparing for the possibility of punitive US tariffs due to the region's persistent trade surplus with the US.
The two most important people in ASEAN right now can’t be accused of not understanding the crucial function that the group plays as a platform for collective middle-power diplomacy. Speaking at a media conference after his meeting with Malaysian Prime Minister Anwar Ibrahim in Langkawi last week, Indonesian President Prabowo Subianto declared that ‘only via unity among the ASEAN countries, only with good cooperation between us, will our voices be heard, will we be given consideration by powers far bigger than us’.
The only ‘bigger power’ Prabowo saw fit to mention was the European Union, perhaps understandably, given that both Malaysia and Indonesia are locked in a longstanding dispute about the impact of proposed EU sustainability rules on their palm oil industries.
Though both leaders were too diplomatic to say so, a wave of green regulations emanating from Brussels might be the least of Southeast Asia’s problems when it comes to the economic impact of extra-regional policy developments.
As Mari Pangestu and Shiro Armstrong warn in this week’s lead article, ‘Southeast Asian domestic markets are about to be hit by a tsunami of cheap Chinese goods, unable to enter the United States if US President Donald Trump follows through on his earlier promise of 60 per cent tariffs on all Chinese imports’. At this stage Trump has announced a 10 per cent tariff hike on Chinese imports. East Asia Forum
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India's Expenditure on Refined Palm Oil Rises to $2.2 Billion in 2024
India Refined Palm Oil Imports Refined palm oil imports into India expanded to 2.3M tons in 2024, picking up by 2.7% on the year before. In general, imports continue to indicate pronounced growth. The growth pace was the most rapid in 2021 when imports increased by 314% against the previous year. Over the period under review, imports attained the maximum at 3.1M tons in 2019; however, from 2020 to 2024, imports stood at a somewhat lower figure.
In value terms, refined palm oil imports expanded modestly to $2.2B (IndexBox estimates) in 2024. Overall, imports showed a buoyant expansion. The most prominent rate of growth was recorded in 2021 with an increase of 584% against the previous year. Imports peaked at $3.2B in 2022; however, from 2023 to 2024, imports remained at a lower figure. Index Box
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Pakistan has significant potential to become a regional hub for distributing Malaysia Sustainable Palm Oil
Datuk Seri Johari Abdul Ghani is the Minister of Plantation and Commodities of Malaysia, overseeing the country’s strategic policies and initiatives in the palm oil, rubber, timber, and other key commodity sectors. He has played a pivotal role in advocating for sustainable palm oil production, promoting Malaysian commodities in global markets, and enhancing trade relationships with key partners, including Pakistan.
Before assuming his ministerial role, Datuk Seri Johari Abdul Ghani had a distinguished career in both the public and private sectors. He previously served as the Minister of Finance (2016-2018), where he was instrumental in driving fiscal policies, corporate governance reforms, and economic resilience initiatives. As a seasoned entrepreneur, he has extensive experience in corporate leadership, having held key positions in various industries, including real estate, finance, and agribusiness.
Datuk Seri Johari Abdul Ghani has been a strong advocate for environmental sustainability and responsible commodity production, ensuring that Malaysia remains a leader in the global commodities market while balancing economic growth with ecological responsibility. Under his leadership, Malaysia has intensified efforts to comply with international sustainability standards, including the Malaysian Sustainable Palm Oil (MSPO) certification, to enhance market access and consumer confidence worldwide. Brecorder
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RSPO Launches Prisma platform
Designed to enhance compliance with global regulations, prisma provides real-time data and analytics to help RSPO Members streamline operations, optimise supply chains, and strengthen sustainability commitments.
Aimed at enhancing trade and compliance while meeting global regulations, PRISMA streamlines collaboration among RSPO stakeholders, optimising efficiency and accountability. Standardised audit reports enable better data analytics, ensuring adherence to RSPO Standards in a dynamic sustainability landscape. Prisma by RSPO
What American consumer goods is Canada targeting with counter-tariffs?
Prime Minister Justin Trudeau announced late Saturday the federal government will hit back against the U.S. after President Donald Trump launched a trade war this weekend with punitive tariffs on all Canadian goods.
Trump followed through on a months-long threat and is slapping a 25 per cent tariff on virtually all Canadian goods and a 10 per cent tariff on Canadian energy.
In retaliation, Canada will slap 25 per cent tariffs on $30 billion worth of American goods coming into Canada as of Tuesday. The tariffs will then be applied to another $125 billion worth of American imports in three weeks' time following a consultation period.
On Sunday, Ottawa released the full list of products that will be taxed starting on Tuesday.
The list includes some supply managed products that were given Canadian market access as concessions during the negotiation of the Canada-U.S.-Mexico Agreement (CUSMA) — but a government source said on background that the list does not amount to a full walk-back of those concessions at this point.
Here is a breakdown of what's included: CBC
--------
Southeast Asia in the crossfire of the US–China trade war
With rising tensions due to the international implications of the Chinese economy's imbalances and the re-escalation of the US-China trade war, ASEAN nations are recognising the need for unity to ensure their interests are considered by larger global powers. Supporting institutional structures like the Multi-Party Interim Appeal Arbitration Agreement, a substitute for the WTO dispute settlement process, can help safeguard against protectionism. ASEAN needs a coordinated policy strategy to defend the benefits from free and open trade, while also preparing for the possibility of punitive US tariffs due to the region's persistent trade surplus with the US.
The two most important people in ASEAN right now can’t be accused of not understanding the crucial function that the group plays as a platform for collective middle-power diplomacy. Speaking at a media conference after his meeting with Malaysian Prime Minister Anwar Ibrahim in Langkawi last week, Indonesian President Prabowo Subianto declared that ‘only via unity among the ASEAN countries, only with good cooperation between us, will our voices be heard, will we be given consideration by powers far bigger than us’.
The only ‘bigger power’ Prabowo saw fit to mention was the European Union, perhaps understandably, given that both Malaysia and Indonesia are locked in a longstanding dispute about the impact of proposed EU sustainability rules on their palm oil industries.
Though both leaders were too diplomatic to say so, a wave of green regulations emanating from Brussels might be the least of Southeast Asia’s problems when it comes to the economic impact of extra-regional policy developments.
As Mari Pangestu and Shiro Armstrong warn in this week’s lead article, ‘Southeast Asian domestic markets are about to be hit by a tsunami of cheap Chinese goods, unable to enter the United States if US President Donald Trump follows through on his earlier promise of 60 per cent tariffs on all Chinese imports’. At this stage Trump has announced a 10 per cent tariff hike on Chinese imports. East Asia Forum
--------
India's Expenditure on Refined Palm Oil Rises to $2.2 Billion in 2024
India Refined Palm Oil Imports Refined palm oil imports into India expanded to 2.3M tons in 2024, picking up by 2.7% on the year before. In general, imports continue to indicate pronounced growth. The growth pace was the most rapid in 2021 when imports increased by 314% against the previous year. Over the period under review, imports attained the maximum at 3.1M tons in 2019; however, from 2020 to 2024, imports stood at a somewhat lower figure.
In value terms, refined palm oil imports expanded modestly to $2.2B (IndexBox estimates) in 2024. Overall, imports showed a buoyant expansion. The most prominent rate of growth was recorded in 2021 with an increase of 584% against the previous year. Imports peaked at $3.2B in 2022; however, from 2023 to 2024, imports remained at a lower figure. Index Box
--------
Pakistan has significant potential to become a regional hub for distributing Malaysia Sustainable Palm Oil
Datuk Seri Johari Abdul Ghani is the Minister of Plantation and Commodities of Malaysia, overseeing the country’s strategic policies and initiatives in the palm oil, rubber, timber, and other key commodity sectors. He has played a pivotal role in advocating for sustainable palm oil production, promoting Malaysian commodities in global markets, and enhancing trade relationships with key partners, including Pakistan.
Before assuming his ministerial role, Datuk Seri Johari Abdul Ghani had a distinguished career in both the public and private sectors. He previously served as the Minister of Finance (2016-2018), where he was instrumental in driving fiscal policies, corporate governance reforms, and economic resilience initiatives. As a seasoned entrepreneur, he has extensive experience in corporate leadership, having held key positions in various industries, including real estate, finance, and agribusiness.
Datuk Seri Johari Abdul Ghani has been a strong advocate for environmental sustainability and responsible commodity production, ensuring that Malaysia remains a leader in the global commodities market while balancing economic growth with ecological responsibility. Under his leadership, Malaysia has intensified efforts to comply with international sustainability standards, including the Malaysian Sustainable Palm Oil (MSPO) certification, to enhance market access and consumer confidence worldwide. Brecorder
--------
RSPO Launches Prisma platform
Designed to enhance compliance with global regulations, prisma provides real-time data and analytics to help RSPO Members streamline operations, optimise supply chains, and strengthen sustainability commitments.
Aimed at enhancing trade and compliance while meeting global regulations, PRISMA streamlines collaboration among RSPO stakeholders, optimising efficiency and accountability. Standardised audit reports enable better data analytics, ensuring adherence to RSPO Standards in a dynamic sustainability landscape. Prisma by RSPO
February 01, 2025
Boosting Palm Oil Productivity for Indonesia's Alternative Energy Future
InfoSAWIT, JAKARTA – The Indonesian palm oil industry faces a major challenge: low productivity. Although technological developments in agronomy, plant breeding, and processing techniques have increased the potential for CPO yield from 19% to 27%, the reality on the ground is far from expectations. The potential for Fresh Fruit Bunches (FFB) production currently reaches 8 tons of palm oil per hectare per year, but actual productivity is only 2.8 tons per hectare per year. This means that the realization of productivity is only 35% of its potential. This is a worrying situation.
One of the main causes of low palm oil productivity is the lack of fertilization. Many plantation areas, both owned by small farmers and large companies, are not optimally fertilized. In PTPN (BUMN Perkebunan), for example, fertilizer is not given optimally, even 3-5 years before replanting, the plants are not fertilized at all. In fact, oil palm is a hybrid plant that is very responsive to fertilization.
The problem is, fertilization recommendations often do not consider the economic impact. As a result, the amount and composition of fertilizer given do not match the proper dosage. The high price of fertilizer is also an obstacle, although economic analysis shows that fertilization of up to 10 kg per tree per year is still economical.
To overcome this problem, providing subsidized fertilizers can be a quick solution. With fertilizer subsidies, palm oil productivity can increase significantly. Simple calculations show that fertilizer subsidies for 17 million hectares of palm oil plantations require funds of around IDR 90 trillion. However, the impact is much greater: state revenues from export duties, export levies, and VAT can reach IDR 186 trillion. This means that fertilizer subsidies are not a waste, but a profitable investment.
In addition, the application of the Production Force Management method can increase fertilization efficiency. This method focuses on “root management” and “canopy management,” which increase the nutrient absorption and photosynthesis capacity of plants. With this method, productivity can increase by 30-100%, while fertilizer costs can be reduced.
Another issue that is often overlooked is the production road infrastructure. Many oil palm plantations have high production potential, but the fruit cannot be transported to the factory due to poor road conditions. Improving this infrastructure must be a priority to ensure that the harvest can reach the factory smoothly.
In addition, coordination between agencies is also a major obstacle. There are at least eight agencies involved in the management of the palm oil industry: the Ministry of Agriculture, the Ministry of Industry, the Ministry of Trade, PT Pertamina, BPDPKS, ATR, local governments, and banking. To solve this problem, a special agency is needed that can coordinate all related agencies.
State-owned Plantation Companies such as PTPN have a strategic role in increasing national palm oil productivity. Currently, productivity at PTPN has reached 51.3% of its potential, higher than private plantations (43.04%) and community plantations (31.99%). PTPN can be tasked with developing new areas, fostering plasma farmers, and taking over abandoned private plantations.
By optimizing the role of PTPN, state revenues from taxes, export levies, and dividends can increase significantly. This income can even be twice the value of the fertilizer subsidy provided.
National palm oil production is not only important to meet domestic and export needs, but can also be a powerful political weapon. In the context of diplomacy and energy security, palm oil can be Indonesia's mainstay to reduce dependence on fossil fuel imports. The B-100 program, for example, can be a long-term solution to reduce fossil fuel consumption.
However, to achieve this, Indonesia must increase palm oil production from 50 million tons to 120-130 million tons per year. With the current palm oil area reaching 17 million hectares and the potential for expansion to 20.5 million hectares, this target can be achieved if productivity is increased to 7 tons per hectare per year.
Author: Memet Hakim / Senior Agronomist for Palm Oil, TA Business Recovery & Financial Improvement / Advisory Board of APIB & APP TNI Infosawit
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This Bank Relies on Sustainable Financing, Palm Oil Considered a Green Industry
InfoSAWIT, JAKARTA – PT Bank Rakyat Indonesia Tbk (BRI) stated that most of its financing portfolio is currently allocated to the palm oil industry. BRI President Director, Sunarso, emphasized that financing to the palm oil sector is included in the sustainable financing category.
"Now the big one (funding) is palm oil. It's up to you to interpret it, if I say palm oil is green," said Sunarso. He explained that palm oil has great potential to optimize oil sources as raw materials for biofuel, which is considered more sustainable and environmentally friendly.
Sunarso emphasized that palm oil is one of the strategic keys in supporting the energy transition in Indonesia. According to him, every hectare of palm oil plantation can produce at least 5 tons of oil per year. "If calculated, 5 tons of palm oil is equivalent to how many tons of carbon are absorbed by palm trees from the air. So, I still categorize this kind of financing as renewable energy," Sunarso explained as reported by InfoSAWIT from Katadata, on Saturday (1/2).
Sunarso's statement is in line with President Prabowo Subianto's previous statement that Indonesia does not need to be afraid of the issue of deforestation for palm oil development. According to the President, palm oil is also a tree that can absorb carbon dioxide (CO2).
“There are leaves. It absorbs carbon dioxide,” Prabowo said on one occasion. “We also have to add oil palm. Don’t be afraid of endangering, deforestation. So, regents, governors, officials, soldiers, and police, guard our oil palm.”
Although palm oil has the ability to absorb carbon, its absorption capacity is still lower compared to natural forests. According to research, a 25-year-old palm tree can absorb 39.94 tons of CO2 per year or equivalent to 146.58 tons of CO2 equivalent (CO2e). However, palm oil plantation activities actually produce carbon emissions, both from plantation operations and changes in carbon storage.
Achmad Surambo, Executive Director of Sawit Watch, explained that land conversion into oil palm plantations can cause different greenhouse gas (GHG) emissions depending on the characteristics of the land.
"If it occurs on grassland land, the maximum emissions produced are -59 tons of CO2-eq, while the minimum is -115 tons of CO2-eq. Meanwhile, forest conversion on mineral land produces maximum emissions of 835 tons of CO2-eq and a minimum of 175 tons of CO2-eq. For peatland, the maximum emissions reach 1,835 tons of CO2-eq and a minimum of 1,175 tons of CO2-eq," Surambo explained in a written statement. Infosawit
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Cross River stakeholders meet to validate seven-year strategic farming devt plans
Stakeholders in the coffee, cocoa, and oil palm industries convened in Calabar, Cross River State, to confirm strategic development plans aimed at enhancing productivity and generating revenue for smallholder farmers and the state government.
Following its establishment by Governor Bassey Otu in March 2024, the committee was tasked with creating a 7-year strategic plan for the cocoa and oil palm value chains and developing a roadmap for cocoa, palm oil and coffee production in the state, among other objectives.
During the meeting, the Commissioner for Agriculture and Irrigation Development, Johnson Ebokpo, emphasised the significant potential of cocoa, coffee, and oil palm as sources of foreign exchange, rural development, poverty alleviation, and food security.
He stressed the need for a coordinated approach to address challenges along the entire value chain while embracing innovation and sustainability.
Ebokpo remarked that the draft 7-year strategic development plan represents extensive consultations and thorough research. He referred to it as not merely a roadmap but a visionary strategy to maximise the benefits of these essential crops through a value chain model that prioritises productivity, sustainability, and market competitiveness.
He asserted, “The success of this strategic plan depends on the commitment of everyone here, from policymakers to private sector representatives, researchers to farmers. Each of us plays a role in transforming these sectors into drivers of growth and prosperity.”
The meeting’s purpose was to validate the plan, ensuring it reflects the realities on the ground and incorporates insights from those directly engaged in the value chain. He called on participants to engage fully, provide constructive input, and ensure the final plan is strong, implementable, and aligned with shared goals.
Chairperson of the Multistakeholder Committee, Prof. Susan Ohen recognised the crucial contributions of stakeholders in achieving the plan’s objectives and highlighted its importance to Cross River State’s economy.
Ohen elaborated on the rationale behind the strategic plans, stating they would aid in increasing foreign exchange earnings, generate job opportunities across the value chains, boost government revenue, and help meet emerging global market standards such as EURD, while also promoting gender inclusion and addressing industry challenges.
“This meeting will help us identify the strengths, weaknesses, opportunities, and threats within these sectors. The outcomes of this process will impact farmers, processors, marketers, banks, and the government,” she noted. Tribune OnlineNG
CSPO Watch February 2025
Boosting Palm Oil Productivity for Indonesia's Alternative Energy Future
InfoSAWIT, JAKARTA – The Indonesian palm oil industry faces a major challenge: low productivity. Although technological developments in agronomy, plant breeding, and processing techniques have increased the potential for CPO yield from 19% to 27%, the reality on the ground is far from expectations. The potential for Fresh Fruit Bunches (FFB) production currently reaches 8 tons of palm oil per hectare per year, but actual productivity is only 2.8 tons per hectare per year. This means that the realization of productivity is only 35% of its potential. This is a worrying situation.
One of the main causes of low palm oil productivity is the lack of fertilization. Many plantation areas, both owned by small farmers and large companies, are not optimally fertilized. In PTPN (BUMN Perkebunan), for example, fertilizer is not given optimally, even 3-5 years before replanting, the plants are not fertilized at all. In fact, oil palm is a hybrid plant that is very responsive to fertilization.
The problem is, fertilization recommendations often do not consider the economic impact. As a result, the amount and composition of fertilizer given do not match the proper dosage. The high price of fertilizer is also an obstacle, although economic analysis shows that fertilization of up to 10 kg per tree per year is still economical.
To overcome this problem, providing subsidized fertilizers can be a quick solution. With fertilizer subsidies, palm oil productivity can increase significantly. Simple calculations show that fertilizer subsidies for 17 million hectares of palm oil plantations require funds of around IDR 90 trillion. However, the impact is much greater: state revenues from export duties, export levies, and VAT can reach IDR 186 trillion. This means that fertilizer subsidies are not a waste, but a profitable investment.
In addition, the application of the Production Force Management method can increase fertilization efficiency. This method focuses on “root management” and “canopy management,” which increase the nutrient absorption and photosynthesis capacity of plants. With this method, productivity can increase by 30-100%, while fertilizer costs can be reduced.
Another issue that is often overlooked is the production road infrastructure. Many oil palm plantations have high production potential, but the fruit cannot be transported to the factory due to poor road conditions. Improving this infrastructure must be a priority to ensure that the harvest can reach the factory smoothly.
In addition, coordination between agencies is also a major obstacle. There are at least eight agencies involved in the management of the palm oil industry: the Ministry of Agriculture, the Ministry of Industry, the Ministry of Trade, PT Pertamina, BPDPKS, ATR, local governments, and banking. To solve this problem, a special agency is needed that can coordinate all related agencies.
State-owned Plantation Companies such as PTPN have a strategic role in increasing national palm oil productivity. Currently, productivity at PTPN has reached 51.3% of its potential, higher than private plantations (43.04%) and community plantations (31.99%). PTPN can be tasked with developing new areas, fostering plasma farmers, and taking over abandoned private plantations.
By optimizing the role of PTPN, state revenues from taxes, export levies, and dividends can increase significantly. This income can even be twice the value of the fertilizer subsidy provided.
National palm oil production is not only important to meet domestic and export needs, but can also be a powerful political weapon. In the context of diplomacy and energy security, palm oil can be Indonesia's mainstay to reduce dependence on fossil fuel imports. The B-100 program, for example, can be a long-term solution to reduce fossil fuel consumption.
However, to achieve this, Indonesia must increase palm oil production from 50 million tons to 120-130 million tons per year. With the current palm oil area reaching 17 million hectares and the potential for expansion to 20.5 million hectares, this target can be achieved if productivity is increased to 7 tons per hectare per year.
Author: Memet Hakim / Senior Agronomist for Palm Oil, TA Business Recovery & Financial Improvement / Advisory Board of APIB & APP TNI Infosawit
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This Bank Relies on Sustainable Financing, Palm Oil Considered a Green Industry
InfoSAWIT, JAKARTA – PT Bank Rakyat Indonesia Tbk (BRI) stated that most of its financing portfolio is currently allocated to the palm oil industry. BRI President Director, Sunarso, emphasized that financing to the palm oil sector is included in the sustainable financing category.
"Now the big one (funding) is palm oil. It's up to you to interpret it, if I say palm oil is green," said Sunarso. He explained that palm oil has great potential to optimize oil sources as raw materials for biofuel, which is considered more sustainable and environmentally friendly.
Sunarso emphasized that palm oil is one of the strategic keys in supporting the energy transition in Indonesia. According to him, every hectare of palm oil plantation can produce at least 5 tons of oil per year. "If calculated, 5 tons of palm oil is equivalent to how many tons of carbon are absorbed by palm trees from the air. So, I still categorize this kind of financing as renewable energy," Sunarso explained as reported by InfoSAWIT from Katadata, on Saturday (1/2).
Sunarso's statement is in line with President Prabowo Subianto's previous statement that Indonesia does not need to be afraid of the issue of deforestation for palm oil development. According to the President, palm oil is also a tree that can absorb carbon dioxide (CO2).
“There are leaves. It absorbs carbon dioxide,” Prabowo said on one occasion. “We also have to add oil palm. Don’t be afraid of endangering, deforestation. So, regents, governors, officials, soldiers, and police, guard our oil palm.”
Although palm oil has the ability to absorb carbon, its absorption capacity is still lower compared to natural forests. According to research, a 25-year-old palm tree can absorb 39.94 tons of CO2 per year or equivalent to 146.58 tons of CO2 equivalent (CO2e). However, palm oil plantation activities actually produce carbon emissions, both from plantation operations and changes in carbon storage.
Achmad Surambo, Executive Director of Sawit Watch, explained that land conversion into oil palm plantations can cause different greenhouse gas (GHG) emissions depending on the characteristics of the land.
"If it occurs on grassland land, the maximum emissions produced are -59 tons of CO2-eq, while the minimum is -115 tons of CO2-eq. Meanwhile, forest conversion on mineral land produces maximum emissions of 835 tons of CO2-eq and a minimum of 175 tons of CO2-eq. For peatland, the maximum emissions reach 1,835 tons of CO2-eq and a minimum of 1,175 tons of CO2-eq," Surambo explained in a written statement. Infosawit
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Cross River stakeholders meet to validate seven-year strategic farming devt plans
Stakeholders in the coffee, cocoa, and oil palm industries convened in Calabar, Cross River State, to confirm strategic development plans aimed at enhancing productivity and generating revenue for smallholder farmers and the state government.
Following its establishment by Governor Bassey Otu in March 2024, the committee was tasked with creating a 7-year strategic plan for the cocoa and oil palm value chains and developing a roadmap for cocoa, palm oil and coffee production in the state, among other objectives.
During the meeting, the Commissioner for Agriculture and Irrigation Development, Johnson Ebokpo, emphasised the significant potential of cocoa, coffee, and oil palm as sources of foreign exchange, rural development, poverty alleviation, and food security.
He stressed the need for a coordinated approach to address challenges along the entire value chain while embracing innovation and sustainability.
Ebokpo remarked that the draft 7-year strategic development plan represents extensive consultations and thorough research. He referred to it as not merely a roadmap but a visionary strategy to maximise the benefits of these essential crops through a value chain model that prioritises productivity, sustainability, and market competitiveness.
He asserted, “The success of this strategic plan depends on the commitment of everyone here, from policymakers to private sector representatives, researchers to farmers. Each of us plays a role in transforming these sectors into drivers of growth and prosperity.”
The meeting’s purpose was to validate the plan, ensuring it reflects the realities on the ground and incorporates insights from those directly engaged in the value chain. He called on participants to engage fully, provide constructive input, and ensure the final plan is strong, implementable, and aligned with shared goals.
Chairperson of the Multistakeholder Committee, Prof. Susan Ohen recognised the crucial contributions of stakeholders in achieving the plan’s objectives and highlighted its importance to Cross River State’s economy.
Ohen elaborated on the rationale behind the strategic plans, stating they would aid in increasing foreign exchange earnings, generate job opportunities across the value chains, boost government revenue, and help meet emerging global market standards such as EURD, while also promoting gender inclusion and addressing industry challenges.
“This meeting will help us identify the strengths, weaknesses, opportunities, and threats within these sectors. The outcomes of this process will impact farmers, processors, marketers, banks, and the government,” she noted. Tribune OnlineNG
CSPO Watch February 2025
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