Palm Oil News. April 2023
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April 30, 2023
Malaysia-Prime Minister wants to eradicate extreme poverty
ALOR SETAR: Datuk Seri Anwar Ibrahim said the Unity Government wants to completely eradicate hardcore poor in the country which he described as disgraceful for a country which is rich in resources such as oil and gas.
The Prime Minister said among the states that still recorded high levels of hardcore poverty are Sabah, Sarawak, Kelantan, Terengganu and Kedah.
“Without exception, we will make sure that this problem of hardcore poverty will be dealt with properly and in Kedah through the Madani Unity Government’s programmes to reduce the number of hardcore poor in the entire state of Kedah.
“I have asked the entire machinery of the federal government, the machinery of the state government and the machinery of the municipal councils to help in this direction because it is humiliating for a country that has enormous resources such as oil and gas, palm oil and various industries (but) cannot solve the basic problem of hardcore poverty in our country,“ he said.
He said this when speaking to thank the Sultan of Kedah Al-Aminul Karim Sultan Sallehuddin Sultan Badlishah for gracing the Malaysia Madani Open House here today. The Sun Daily
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EU-New supply chain laws shake suppliers in developing world
Stricter rules for environmental protection and human rights are supposed to improve working conditions. But the weakest links in global supply chains fear falling behind in the sustainability race.
The new German Supply Chain Due Dilligence Act has been designed to ensure more environmental protection and better social and working conditions for suppliers. It especially targets poorer countries with little worker protection. But some companies in those countries feel they have little reason to celebrate because meeting the new rules their German customers' demand is tough.
Since the new German law came into force in January, German companies are obliged to regularly control and monitor conditions in their supply chains abroad, and must undergo regular audits.
Germany has joined countries like France, Italy, Australia and Canada that have already passed such laws. The EU is also working on a draft supply chain law.
Supply chain shakeout underway
Alexander Sandkamp of the Kiel Institute for the World Economy (IfW) sees a danger that stricter requirements will force small companies abroad out of German supply chains because it is simply too expensive for German importers to inspect them. He told DW that some of them might also "move production directly back to industrialized countries, where it's easier to ensure human rights are respected."
In France, where a due diligence law was already passed in 2017, a decline in imports from low-income countries has taken place, according to a study by the Institute of the German Economy (IW) to be published soon. DW
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Nigeria-Oil Palm: Experts Seek Increased Investment To Halt Importation
Agriculture experts have called for more investment in oil palm production to enhance the growth and development of the sector.
Agriculture experts have called for more investment in oil palm production to enhance the growth and development of the sector. They said this in separate interviews with the News Agency of Nigeria (NAN) in Lagos.
The experts spoke against the backdrop of a report published recently, that Nigeria imported N299.6billion worth of palm oil from 2017 to 2022.
The publication, which relied on quarterly reports by the National Bureau of Statistics (NBS), indicated that ‘Palm Crude Oil’ is often among the top five imported agricultural products into the country.
Professor Adetunji Iyiola, a fellow at the National Agriculture and Extension Research Liaison Service (NAERLS), described the importation of oil palm by an agrarian country like Nigeria as an anomaly.
Iyiola said experts needed to develop new strategies to boost local oil palm production in the country.
“The strategy to boost the oil palm sector is to go back to the basics.
“What we need is to make a new habit of investing in oil palm production in Nigeria. It is a very lucrative business. Daily TrustNG
Malaysia-Prime Minister wants to eradicate extreme poverty
ALOR SETAR: Datuk Seri Anwar Ibrahim said the Unity Government wants to completely eradicate hardcore poor in the country which he described as disgraceful for a country which is rich in resources such as oil and gas.
The Prime Minister said among the states that still recorded high levels of hardcore poverty are Sabah, Sarawak, Kelantan, Terengganu and Kedah.
“Without exception, we will make sure that this problem of hardcore poverty will be dealt with properly and in Kedah through the Madani Unity Government’s programmes to reduce the number of hardcore poor in the entire state of Kedah.
“I have asked the entire machinery of the federal government, the machinery of the state government and the machinery of the municipal councils to help in this direction because it is humiliating for a country that has enormous resources such as oil and gas, palm oil and various industries (but) cannot solve the basic problem of hardcore poverty in our country,“ he said.
He said this when speaking to thank the Sultan of Kedah Al-Aminul Karim Sultan Sallehuddin Sultan Badlishah for gracing the Malaysia Madani Open House here today. The Sun Daily
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EU-New supply chain laws shake suppliers in developing world
Stricter rules for environmental protection and human rights are supposed to improve working conditions. But the weakest links in global supply chains fear falling behind in the sustainability race.
The new German Supply Chain Due Dilligence Act has been designed to ensure more environmental protection and better social and working conditions for suppliers. It especially targets poorer countries with little worker protection. But some companies in those countries feel they have little reason to celebrate because meeting the new rules their German customers' demand is tough.
Since the new German law came into force in January, German companies are obliged to regularly control and monitor conditions in their supply chains abroad, and must undergo regular audits.
Germany has joined countries like France, Italy, Australia and Canada that have already passed such laws. The EU is also working on a draft supply chain law.
Supply chain shakeout underway
Alexander Sandkamp of the Kiel Institute for the World Economy (IfW) sees a danger that stricter requirements will force small companies abroad out of German supply chains because it is simply too expensive for German importers to inspect them. He told DW that some of them might also "move production directly back to industrialized countries, where it's easier to ensure human rights are respected."
In France, where a due diligence law was already passed in 2017, a decline in imports from low-income countries has taken place, according to a study by the Institute of the German Economy (IW) to be published soon. DW
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Nigeria-Oil Palm: Experts Seek Increased Investment To Halt Importation
Agriculture experts have called for more investment in oil palm production to enhance the growth and development of the sector.
Agriculture experts have called for more investment in oil palm production to enhance the growth and development of the sector. They said this in separate interviews with the News Agency of Nigeria (NAN) in Lagos.
The experts spoke against the backdrop of a report published recently, that Nigeria imported N299.6billion worth of palm oil from 2017 to 2022.
The publication, which relied on quarterly reports by the National Bureau of Statistics (NBS), indicated that ‘Palm Crude Oil’ is often among the top five imported agricultural products into the country.
Professor Adetunji Iyiola, a fellow at the National Agriculture and Extension Research Liaison Service (NAERLS), described the importation of oil palm by an agrarian country like Nigeria as an anomaly.
Iyiola said experts needed to develop new strategies to boost local oil palm production in the country.
“The strategy to boost the oil palm sector is to go back to the basics.
“What we need is to make a new habit of investing in oil palm production in Nigeria. It is a very lucrative business. Daily TrustNG
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April 29, 2023
Colombia's palm oil producers eye SAF market
Colombia, the world's fourth-largest palm oil producer, could increase output of the agricultural product by almost 40pc by 2028 to feed a growing sustainable aviation fuel (SAF) market, the head of the Colombian federation of palm oil growers (Fedepalma) said.
The country — Latin America's largest palm oil producer — is set to produce around 1.8 mn t/yr of palm oil in 2023, but it could boost production to around 2.5 mn t/yr by 2028 if the SAF market proves to be economically profitable for palm oil producers, Nicolas Perez Marulanda told Argus on the sidelines of IV International Conference on Biofuels in Cali, Colombia.
"What is exported today, which is 2pc of the total production, that bulk could be available for the new SAF market," Marulanda said. "But SAF needs to prove that it is more attractive [for palm oil] than exports. From what we have been hearing, the prices for the raw material for SAF are very interesting."
The ISCC, a global sustainability certification system, is developing a study financed by the World Bank to demonstrate Colombia's palm oil production is done sustainably, without deforestation. Argus Media
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Chinese Import Fraud Could Shatter Europe’s Biodiesel Dreams
The EU’s plans to foster the use of biodiesel could be jeopardised after media reports emerged of large-scale fraud by Chinese companies misrepresenting biodiesel exports to obtain generous European grants.
Europe is presently experiencing a surge of Chinese biodiesel imports, helped by subsidy schemes put in place by the EU Commission and a commitment to have biofuels provide 3.5% of transport needs by 2030.
EU climate legislation has created an artificial demand for biodiesel ripe for abuse, with aircraft now mandated to include it among other biofuels from 2025 on.
Chinese producers are accused of using substandard ingredients such as excess cooking oil and industrial waste to pass off as high-grade biodiesel, even adding colouring to make their products more authentic.
Suspicion was raised when researchers noticed an unusual increase in waste palm oil being imported into China from Malaysia and Indonesia—likely for biodiesel production coinciding with the export surge. Authorities this week increased the frequency of audits on Chinese biodiesel; Europe is heavily reliant on biodiesel imports due to an incapacity to meet its demand. European Conservative
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Malaysia seeks clean energy transition deal with rich nations
Malaysia is in talks with richer nations, hoping to follow its neighbours Indonesia and Vietnam in striking a finance deal to transition away from polluting coal power towards more renewable energy, the country's climate change minister said.
Malaysia, which relies on coal and natural gas for 75% of its power needs, is trailing its Southeast Asian neighbours on clean energy expansion - and climate experts say the new government should tap more global green funding to cut carbon emissions, tackle the effects of warming and protect nature. In late 2022, Indonesia and Vietnam clinched big finance partnerships with rich nations to shutter their coal-fired power plants early and reduce greenhouse gas emissions.
Nik Nazmi Nik Ahmad, Malaysia's minister of natural resources, environment and climate change, said his government had been engaging with developed countries - including the United States, the European Union and Japan - on the prospects for energy transition and other climate-related deals. "We saw how Indonesia tapped into the just energy transition plan, and Vietnam as well. Conversations are ongoing," he said during an interview at his ministry in Putrajaya, adding that he hoped an energy transition deal could be reached within the next one to two years. Devdiscourse
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Malaysia-Unity Govt wants zero hardcore poor nationwide
ALOR SETAR – Datuk Seri Anwar Ibrahim said the Unity Government wants to completely eradicate hardcore poor in the country which he described as disgraceful for a country which is rich in resources such as oil and gas.
The Prime Minister said among the states that still recorded high levels of hardcore poverty are Sabah, Sarawak, Kelantan, Terengganu and Kedah.
“Without exception, we will make sure that this problem of hardcore poverty will be dealt with properly and in Kedah through the Madani Unity Government’s programmes to reduce the number of hardcore poor in the entire state of Kedah.
“I have asked the entire machinery of the federal government, the machinery of the state government and the machinery of the municipal councils to help in this direction because it is humiliating for a country that has enormous resources such as oil and gas, palm oil and various industries (but) cannot solve the basic problem of hardcore poverty in our country,” he said.
He said this when speaking to thank the Sultan of Kedah Al-Aminul Karim Sultan Sallehuddin Sultan Badlishah for gracing the Malaysia Madani Open House here today.
Meanwhile, Anwar said Kedah is a state that is given focus by the federal government with more expenditure allocation amounting to RM1.6 billion for this year compared to the previous year. The Malaysian Reserve
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New York Senate passes bill to prevent tropical deforestation
The New York State Senate Tuesday passed the Tropical Deforestation-Free Procurement Act, a bill aimed at protecting tropical rainforests and human rights in other countries through state government relations with contractors.
The bill will require state contractors who work with commodities derived from rainforests to certify that their products are not contributing to deforestation or degradation. According to the bill, this certification must be done through data analysis and a demonstration of supply chain due diligence.
The bill will also create a transparency system so that small, medium-sized, women and minority-owned businesses can gain knowledge and achieve ethical supply chain activities to prevent tropical deforestation and human rights abuses.
Under the bill, two representatives from indigenous communities in the areas of the tropical rainforests will be required, as well as business and civilian representatives, to form a “Stakeholder Advisory Group” to ensure the act is implemented effectively.
The bill calls for contractors and business owners that have a partnership with the government to take responsibility for their forest-risk commodities, which include soy, beef, palm oil, coffee, cocoa, wood pulp, paper and wood products. The bill aims to ensure their usage of such products do not come from places where deforestation or forest degradation occurred after January 1. Jurist
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India-Nagaland suitable for oil palm cultivation: Yanthan
State level workshop-cum-awareness programme on oil palm cultivation in Nagaland was held at Angh House, Agri Expo Site, Chümoukedima, on Friday. The programme was organised by department of Agriculture.
Addressing the gathering as special guest, advisor of Agriculture, Mhathung Yanthan said that oil palm cultivation was suitable in the state as the product has huge market margin all over the country.
He said edible oil was not very much in demand in the state, but there was huge market probability outside the state. “Demand for oil palm is very high in the country. Around 65% of edible oil comes from oil palm”, he said.
He also said that North East and Andaman and Nicobar Island were being targeted for potential growth of oil palm in the country. The advisor further pointed out that the state has a taunting task, pointing out that around 15000 hectares have been earmarked for plantation of Oil Palm.
Therefore, Yanthan said that people have to work hard and give their best efforts to increase the production and reach the target for installation of processing plants. He said only around 1000 hectares have been currently utilized for Oil Palm cultivation which cannot meet the demands of a processing plant due to less production. Yanthan later expressed happiness to Godrej Agrovet Ltd and Patanjali Foods Ltd for taking up as the implementing agencies. Nagaland Post
Colombia's palm oil producers eye SAF market
Colombia, the world's fourth-largest palm oil producer, could increase output of the agricultural product by almost 40pc by 2028 to feed a growing sustainable aviation fuel (SAF) market, the head of the Colombian federation of palm oil growers (Fedepalma) said.
The country — Latin America's largest palm oil producer — is set to produce around 1.8 mn t/yr of palm oil in 2023, but it could boost production to around 2.5 mn t/yr by 2028 if the SAF market proves to be economically profitable for palm oil producers, Nicolas Perez Marulanda told Argus on the sidelines of IV International Conference on Biofuels in Cali, Colombia.
"What is exported today, which is 2pc of the total production, that bulk could be available for the new SAF market," Marulanda said. "But SAF needs to prove that it is more attractive [for palm oil] than exports. From what we have been hearing, the prices for the raw material for SAF are very interesting."
The ISCC, a global sustainability certification system, is developing a study financed by the World Bank to demonstrate Colombia's palm oil production is done sustainably, without deforestation. Argus Media
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Chinese Import Fraud Could Shatter Europe’s Biodiesel Dreams
The EU’s plans to foster the use of biodiesel could be jeopardised after media reports emerged of large-scale fraud by Chinese companies misrepresenting biodiesel exports to obtain generous European grants.
Europe is presently experiencing a surge of Chinese biodiesel imports, helped by subsidy schemes put in place by the EU Commission and a commitment to have biofuels provide 3.5% of transport needs by 2030.
EU climate legislation has created an artificial demand for biodiesel ripe for abuse, with aircraft now mandated to include it among other biofuels from 2025 on.
Chinese producers are accused of using substandard ingredients such as excess cooking oil and industrial waste to pass off as high-grade biodiesel, even adding colouring to make their products more authentic.
Suspicion was raised when researchers noticed an unusual increase in waste palm oil being imported into China from Malaysia and Indonesia—likely for biodiesel production coinciding with the export surge. Authorities this week increased the frequency of audits on Chinese biodiesel; Europe is heavily reliant on biodiesel imports due to an incapacity to meet its demand. European Conservative
---------
Malaysia seeks clean energy transition deal with rich nations
Malaysia is in talks with richer nations, hoping to follow its neighbours Indonesia and Vietnam in striking a finance deal to transition away from polluting coal power towards more renewable energy, the country's climate change minister said.
Malaysia, which relies on coal and natural gas for 75% of its power needs, is trailing its Southeast Asian neighbours on clean energy expansion - and climate experts say the new government should tap more global green funding to cut carbon emissions, tackle the effects of warming and protect nature. In late 2022, Indonesia and Vietnam clinched big finance partnerships with rich nations to shutter their coal-fired power plants early and reduce greenhouse gas emissions.
Nik Nazmi Nik Ahmad, Malaysia's minister of natural resources, environment and climate change, said his government had been engaging with developed countries - including the United States, the European Union and Japan - on the prospects for energy transition and other climate-related deals. "We saw how Indonesia tapped into the just energy transition plan, and Vietnam as well. Conversations are ongoing," he said during an interview at his ministry in Putrajaya, adding that he hoped an energy transition deal could be reached within the next one to two years. Devdiscourse
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Malaysia-Unity Govt wants zero hardcore poor nationwide
ALOR SETAR – Datuk Seri Anwar Ibrahim said the Unity Government wants to completely eradicate hardcore poor in the country which he described as disgraceful for a country which is rich in resources such as oil and gas.
The Prime Minister said among the states that still recorded high levels of hardcore poverty are Sabah, Sarawak, Kelantan, Terengganu and Kedah.
“Without exception, we will make sure that this problem of hardcore poverty will be dealt with properly and in Kedah through the Madani Unity Government’s programmes to reduce the number of hardcore poor in the entire state of Kedah.
“I have asked the entire machinery of the federal government, the machinery of the state government and the machinery of the municipal councils to help in this direction because it is humiliating for a country that has enormous resources such as oil and gas, palm oil and various industries (but) cannot solve the basic problem of hardcore poverty in our country,” he said.
He said this when speaking to thank the Sultan of Kedah Al-Aminul Karim Sultan Sallehuddin Sultan Badlishah for gracing the Malaysia Madani Open House here today.
Meanwhile, Anwar said Kedah is a state that is given focus by the federal government with more expenditure allocation amounting to RM1.6 billion for this year compared to the previous year. The Malaysian Reserve
---------
New York Senate passes bill to prevent tropical deforestation
The New York State Senate Tuesday passed the Tropical Deforestation-Free Procurement Act, a bill aimed at protecting tropical rainforests and human rights in other countries through state government relations with contractors.
The bill will require state contractors who work with commodities derived from rainforests to certify that their products are not contributing to deforestation or degradation. According to the bill, this certification must be done through data analysis and a demonstration of supply chain due diligence.
The bill will also create a transparency system so that small, medium-sized, women and minority-owned businesses can gain knowledge and achieve ethical supply chain activities to prevent tropical deforestation and human rights abuses.
Under the bill, two representatives from indigenous communities in the areas of the tropical rainforests will be required, as well as business and civilian representatives, to form a “Stakeholder Advisory Group” to ensure the act is implemented effectively.
The bill calls for contractors and business owners that have a partnership with the government to take responsibility for their forest-risk commodities, which include soy, beef, palm oil, coffee, cocoa, wood pulp, paper and wood products. The bill aims to ensure their usage of such products do not come from places where deforestation or forest degradation occurred after January 1. Jurist
---------
India-Nagaland suitable for oil palm cultivation: Yanthan
State level workshop-cum-awareness programme on oil palm cultivation in Nagaland was held at Angh House, Agri Expo Site, Chümoukedima, on Friday. The programme was organised by department of Agriculture.
Addressing the gathering as special guest, advisor of Agriculture, Mhathung Yanthan said that oil palm cultivation was suitable in the state as the product has huge market margin all over the country.
He said edible oil was not very much in demand in the state, but there was huge market probability outside the state. “Demand for oil palm is very high in the country. Around 65% of edible oil comes from oil palm”, he said.
He also said that North East and Andaman and Nicobar Island were being targeted for potential growth of oil palm in the country. The advisor further pointed out that the state has a taunting task, pointing out that around 15000 hectares have been earmarked for plantation of Oil Palm.
Therefore, Yanthan said that people have to work hard and give their best efforts to increase the production and reach the target for installation of processing plants. He said only around 1000 hectares have been currently utilized for Oil Palm cultivation which cannot meet the demands of a processing plant due to less production. Yanthan later expressed happiness to Godrej Agrovet Ltd and Patanjali Foods Ltd for taking up as the implementing agencies. Nagaland Post
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April 28, 2023
Indonesia pushes for completing economic partnership negotiations with EU by 2024
Indonesian Deputy Minister of Trade Jerry Sambuaga has expressed his hope that negotiations of the Indonesia - European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) would be completed this year.
Jakarta (VNA) - Indonesian Deputy Minister of Trade Jerry Sambuaga has expressed his hope that negotiations of the Indonesia - European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) would be completed this year.
In a statement on April 19, Sambuaga said that cooperation between Indonesia and the EU can continue to be expanded if the two sides build a relationship of equality and mutual understanding.
According to him, through the IEU-CEPA, some trade disagreements, particularly regarding palm oil and nickel, are expected to be resolved amicably.
According to official statistics, Indonesia's trade surplus hit a record high of 54.5 billion USD last year, supported by strong export activities, including shipments to the EU. However, the Indonesia-EU trade has yet to reach the expected level. VNPlus
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European oleochemical and palm oil operators struggle to understand ramifications of new EU anti-deforestation law
Oleochemical and palm oil operators are struggling to understand the ramifications of the new European Union (EU) deforestation regulation (EUDR), Argus Media reported.
The European Parliament (EP) voted to adopt the EUDR in a bid to fight climate change and biodiversity loss, the EP’s news service reported on 19 April.
Under the new law, companies would need to ensure products sold in the EU had not led to deforestation and forest degradation, the report said.
Products covered by the new legislation are cattle, cocoa, coffee, palm oil, soyabeans and wood. The list also includes products that contain, have been fed with or have been made using these commodities (such as leather, chocolate and furniture), as in the original proposal.
During the negotiation period, rubber, charcoal, printed paper products and a number of palm oil derivatives were also added to the list, the report said.
While no country or commodity would be banned, companies would only be allowed to sell products in the EU if the supplier of the product had issued a so-called “due diligence” statement confirming that the product did not come from deforested land or had led to forest degradation, including of irreplaceable primary forests, after 31 December 2020.
One palm oil importer was quoted as saying some of the products included in the regulation were surprising and clarification was needed.
“Palm oil needs to be compliant with the regulation of each country in Europe, and there are other things that need to be clarified, such as traceability from smallholders, which is defined in Europe as farming four hectares, while Indonesia defines that as 10ha,” the importer told Argus Media.
Although supporting measures to address climate change and regulatory intervention at the EU level, the European Oleochemicals and Allied Products Group (APAG) and the European Committee of Organic Surfactants and their Intermediates (Cesio) said they had concerns with the new regulation.
“The provision to supply geo-location co-ordinates back to plot-of-land creates a barrier in including smallholders in the EU palm oil supply chain,” they said in a joint statement. “Smallholders represent 40% of palm oil production in southeast Asia and are therefore a crucial player in the palm oil value chain.” OFI Magazine
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EU’s global deforestation law finds industry favor but smallholder farmers fear trade exclusion
28 Apr 2023 --- The European Parliament’s decision to adopt a new law to fight global deforestation has been welcomed by major industry players like Nestlé and Barry Callebaut as a positive step toward high-quality, sustainable food systems, but also left smallholder farmers fearing for their livelihoods.
The regulation requires companies to ensure products sold in the EU have not led to deforestation or forest degradation. Suppliers of commodities including cocoa, coffee, palm oil and soya, and products that contain these ingredients like chocolate, must provide a “due diligence” statement confirming that their products have not come from deforested land since 2021.
However, carbon solutions provider ReSeed warns that the new rules requiring farms to be mapped by GPS coordinates will financially burden small-scale cocoa and coffee suppliers and potentially exclude them from international supply chains.
The UN Food and Agriculture Organization estimates that 420 million hectares of forest – an area larger than the EU – were converted to agricultural land between 1990 and 2020. EU consumption represents around 10% of global deforestation, with palm oil and soya accounting for more than two-thirds of this consumption.
Companies will also have to verify that their products comply with the relevant legislation of the country of production, including on human rights, and that the rights of affected indigenous people “have been respected.”
Small farms, big impact
The European Commission will classify countries as low-, standard- or high-risk based on “an objective and transparent assessment” within 18 months of the law entering into force. EU authorities will have access to supplier information, such as geolocation coordinates, and conduct product checks using satellite monitoring tools and DNA analysis.
Meanwhile, Nestlé has championed itself as the first F&B company to pilot Airbus’ new Pléiades Neo satellites. It will monitor its reforestation efforts using high-resolution images, ensuring that the trees it plants in sourcing regions continue to thrive over the long term. Food Ingredients First
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Indonesia-CPO Producers Can't Meet Mandatory Domestic Cooking Oil Supplies
Jakarta. Indonesia has only achieved half of what it had initially targeted for the so-called domestic market obligation or DMO for cooking oil in April, according to the Trade Ministry.
The DMO policy requires crude palm oil (CPO) producers to allocate a portion of their products to the domestic market before exporting. The government has set a goal to distribute 450,000 cooking oil per month under this DMO scheme. But despite April-end being just around the corner, the DMO distribution for cooking oil is still far from the target.
“As of yesterday [April 26], we have had 217,625 tons of cooking oil under the DMO scheme. So we have achieved about 55 percent of the target this month,” senior Trade Ministry official Isy Karim told a press briefing in Jakarta on Thursday.
“Over the past few days, there wasn’t any DMO cooking oil distribution because the producers and businesses had day-offs due to the Eid break,” Isy said. Jakarta Globe
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Oil palm cultivation paving the way to a self-sufficient India
Palm oil is the most ubiquitous vegetable oil. Present in everything from soaps to ketchup, it is the mainstay of all manner of consumer products. India, as the world’s fifth largest consumer market and now the world’s most populous country, is unsurprisingly a major consumer of the commodity.
But it is still heavily reliant on imports to fuel its consumption demand.
NMEO-OP – A step to enhance productivity and reduce import burden
India, in fact, is the world’s largest importer of palm oil. Over 90 percent of its palm oil demand is met through imports while domestic production covers just 2.7 percent of its needs. With this dependence on imports weighing on its exchequer and also leaving it vulnerable to supply chain disruptions, India is making a push to drastically boost domestic production and eventually become self-sufficient in meeting its palm oil demand.
Is oil palm plantation sustainable?
Oil palm cultivation over the years has acquired a reputation for causing damage to the environment. It has been blamed for widespread deforestation and the destruction of entire biospheres and ecosystems. But, while that may have held true once, palm oil cultivation today can be sustainable.
Oil palms require smaller amounts of pesticides and fertilizers than other vegetable oil crops. Additionally, plantations for instance, can be established on land that has already been degraded rather than on land needing to be deforested. In fact, palm oil producers can go further, planting trees elsewhere and therefore re-foresting entire tracts of land. In fact, meticulous land-use planning and the implementation of fine-scale local strategies for palm oil cultivation can reduce the pressure on high biodiversity landscapes.
At the same time, oil palm plantations, if established sustainably and responsibly, can act as carbon sinks. Far from their reputation of being ecologically destructive, they can in fact, play a crucial role in mitigating climate change. Twelve million hectares of oil palm plantations globally can sequester as many as 74 MT of carbon a year due to the crop’s high biomass productivity. With over two lakh hectares under oil palm cultivation in India alone, it’s easy to see how the crop can play a major role in the country’s decarbonisation push. Times of India
Indonesia pushes for completing economic partnership negotiations with EU by 2024
Indonesian Deputy Minister of Trade Jerry Sambuaga has expressed his hope that negotiations of the Indonesia - European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) would be completed this year.
Jakarta (VNA) - Indonesian Deputy Minister of Trade Jerry Sambuaga has expressed his hope that negotiations of the Indonesia - European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) would be completed this year.
In a statement on April 19, Sambuaga said that cooperation between Indonesia and the EU can continue to be expanded if the two sides build a relationship of equality and mutual understanding.
According to him, through the IEU-CEPA, some trade disagreements, particularly regarding palm oil and nickel, are expected to be resolved amicably.
According to official statistics, Indonesia's trade surplus hit a record high of 54.5 billion USD last year, supported by strong export activities, including shipments to the EU. However, the Indonesia-EU trade has yet to reach the expected level. VNPlus
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European oleochemical and palm oil operators struggle to understand ramifications of new EU anti-deforestation law
Oleochemical and palm oil operators are struggling to understand the ramifications of the new European Union (EU) deforestation regulation (EUDR), Argus Media reported.
The European Parliament (EP) voted to adopt the EUDR in a bid to fight climate change and biodiversity loss, the EP’s news service reported on 19 April.
Under the new law, companies would need to ensure products sold in the EU had not led to deforestation and forest degradation, the report said.
Products covered by the new legislation are cattle, cocoa, coffee, palm oil, soyabeans and wood. The list also includes products that contain, have been fed with or have been made using these commodities (such as leather, chocolate and furniture), as in the original proposal.
During the negotiation period, rubber, charcoal, printed paper products and a number of palm oil derivatives were also added to the list, the report said.
While no country or commodity would be banned, companies would only be allowed to sell products in the EU if the supplier of the product had issued a so-called “due diligence” statement confirming that the product did not come from deforested land or had led to forest degradation, including of irreplaceable primary forests, after 31 December 2020.
One palm oil importer was quoted as saying some of the products included in the regulation were surprising and clarification was needed.
“Palm oil needs to be compliant with the regulation of each country in Europe, and there are other things that need to be clarified, such as traceability from smallholders, which is defined in Europe as farming four hectares, while Indonesia defines that as 10ha,” the importer told Argus Media.
Although supporting measures to address climate change and regulatory intervention at the EU level, the European Oleochemicals and Allied Products Group (APAG) and the European Committee of Organic Surfactants and their Intermediates (Cesio) said they had concerns with the new regulation.
“The provision to supply geo-location co-ordinates back to plot-of-land creates a barrier in including smallholders in the EU palm oil supply chain,” they said in a joint statement. “Smallholders represent 40% of palm oil production in southeast Asia and are therefore a crucial player in the palm oil value chain.” OFI Magazine
----------
EU’s global deforestation law finds industry favor but smallholder farmers fear trade exclusion
28 Apr 2023 --- The European Parliament’s decision to adopt a new law to fight global deforestation has been welcomed by major industry players like Nestlé and Barry Callebaut as a positive step toward high-quality, sustainable food systems, but also left smallholder farmers fearing for their livelihoods.
The regulation requires companies to ensure products sold in the EU have not led to deforestation or forest degradation. Suppliers of commodities including cocoa, coffee, palm oil and soya, and products that contain these ingredients like chocolate, must provide a “due diligence” statement confirming that their products have not come from deforested land since 2021.
However, carbon solutions provider ReSeed warns that the new rules requiring farms to be mapped by GPS coordinates will financially burden small-scale cocoa and coffee suppliers and potentially exclude them from international supply chains.
The UN Food and Agriculture Organization estimates that 420 million hectares of forest – an area larger than the EU – were converted to agricultural land between 1990 and 2020. EU consumption represents around 10% of global deforestation, with palm oil and soya accounting for more than two-thirds of this consumption.
Companies will also have to verify that their products comply with the relevant legislation of the country of production, including on human rights, and that the rights of affected indigenous people “have been respected.”
Small farms, big impact
The European Commission will classify countries as low-, standard- or high-risk based on “an objective and transparent assessment” within 18 months of the law entering into force. EU authorities will have access to supplier information, such as geolocation coordinates, and conduct product checks using satellite monitoring tools and DNA analysis.
Meanwhile, Nestlé has championed itself as the first F&B company to pilot Airbus’ new Pléiades Neo satellites. It will monitor its reforestation efforts using high-resolution images, ensuring that the trees it plants in sourcing regions continue to thrive over the long term. Food Ingredients First
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Indonesia-CPO Producers Can't Meet Mandatory Domestic Cooking Oil Supplies
Jakarta. Indonesia has only achieved half of what it had initially targeted for the so-called domestic market obligation or DMO for cooking oil in April, according to the Trade Ministry.
The DMO policy requires crude palm oil (CPO) producers to allocate a portion of their products to the domestic market before exporting. The government has set a goal to distribute 450,000 cooking oil per month under this DMO scheme. But despite April-end being just around the corner, the DMO distribution for cooking oil is still far from the target.
“As of yesterday [April 26], we have had 217,625 tons of cooking oil under the DMO scheme. So we have achieved about 55 percent of the target this month,” senior Trade Ministry official Isy Karim told a press briefing in Jakarta on Thursday.
“Over the past few days, there wasn’t any DMO cooking oil distribution because the producers and businesses had day-offs due to the Eid break,” Isy said. Jakarta Globe
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Oil palm cultivation paving the way to a self-sufficient India
Palm oil is the most ubiquitous vegetable oil. Present in everything from soaps to ketchup, it is the mainstay of all manner of consumer products. India, as the world’s fifth largest consumer market and now the world’s most populous country, is unsurprisingly a major consumer of the commodity.
But it is still heavily reliant on imports to fuel its consumption demand.
NMEO-OP – A step to enhance productivity and reduce import burden
India, in fact, is the world’s largest importer of palm oil. Over 90 percent of its palm oil demand is met through imports while domestic production covers just 2.7 percent of its needs. With this dependence on imports weighing on its exchequer and also leaving it vulnerable to supply chain disruptions, India is making a push to drastically boost domestic production and eventually become self-sufficient in meeting its palm oil demand.
Is oil palm plantation sustainable?
Oil palm cultivation over the years has acquired a reputation for causing damage to the environment. It has been blamed for widespread deforestation and the destruction of entire biospheres and ecosystems. But, while that may have held true once, palm oil cultivation today can be sustainable.
Oil palms require smaller amounts of pesticides and fertilizers than other vegetable oil crops. Additionally, plantations for instance, can be established on land that has already been degraded rather than on land needing to be deforested. In fact, palm oil producers can go further, planting trees elsewhere and therefore re-foresting entire tracts of land. In fact, meticulous land-use planning and the implementation of fine-scale local strategies for palm oil cultivation can reduce the pressure on high biodiversity landscapes.
At the same time, oil palm plantations, if established sustainably and responsibly, can act as carbon sinks. Far from their reputation of being ecologically destructive, they can in fact, play a crucial role in mitigating climate change. Twelve million hectares of oil palm plantations globally can sequester as many as 74 MT of carbon a year due to the crop’s high biomass productivity. With over two lakh hectares under oil palm cultivation in India alone, it’s easy to see how the crop can play a major role in the country’s decarbonisation push. Times of India
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April 27, 2023
Indonesia to ease palm oil domestic sales rules starting May
JAKARTA, April 27 (Reuters) - Indonesia will lower its mandatory domestic sales threshold for palm oil producers to 300,000 tonnes a month starting in May, the Trade Ministry said on Thursday, allowing more shipments of the widely-used oil to leave the country.
The world's top palm oil producer tightened exports earlier this year in anticipation of higher domestic demand for cooking oil ahead of the holy Islamic month of Ramadan, which started in late March this year.
Global markets were left shocked last year when Indonesia banned all exports of palm oil for three weeks to control soaring cooking oil prices at home. Since then the government has imposed the so-called Domestic Market Obligation (DMO) to control exports, a policy it tweaks regularly in accordance with market conditions.
From May, the government will tighten the ratio of palm oil exports to four times the volume producers have sold domestically, from six times the volume currently, but ease the ratio for some cooking oil products. Nasdaq/ Reuters
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Indonesia to gradually ease palm oil exports over nine months
Indonesia will ease its palm oil export rules gradually from May and reduce the domestic sales obligation for its palm oil producers from May, the trade ministry said April 27.
The world's largest vegetable oil exporter had tightened export quotas of palm oil companies in January to control the cost of cooking oils in the domestic market ahead of the Ramadan month starting in March.
As part of the latest ruling, Jakarta said that the ratio of export quotas for local palm oil companies will be set at four times of domestic sales requirements compared to the current quota of six times.
While this will tighten exports in the near term, the trade ministry said it will release quotas held back in the past few months over the next nine months. SPGlobal
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Malaysia, Netherlands enjoy strong relations
KUALA LUMPUR: Malaysia and the Netherlands have enjoyed strong economic ties over the years, with both countries being maritime nations with trade-oriented economies.
As of 2021, statistics show that the total trade volume in goods and services between Malaysia and the Netherlands amounted to RM41.8 billion.
This makes the Netherlands Malaysia's second-largest trading partner in the European Union (EU). Historically, with solid investment ties, the Netherlands is one of the country's top five foreign investors.
He told the New Straits Times that Malaysia has historically has also invested around RM40 billion in the Netherlands, which accounted for 6.5 per cent of Malaysia's total direct investment abroad.
Werner also added that Malaysia is the most important source of palm oil to the Netherlands, where almost one-third of the palm oil in the Netherlands is derived from Malaysia. New Straits Times
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Europe Battles Flood of Green Fuel Suspected to Be Fraudulent
Surge in Chinese biodiesel exports to EU sparks fraud concerns
Group warns EU biodiesel industry faces ‘existential’ threat
(Bloomberg) -- Europe’s push for more green fuel has helped build an industry in China that collects, recycles and ships waste such as used cooking oil. But a flood of biofuel is now threatening European producers and sparking fears about fraudulent exports.
Producers in the European Union are worried they’re being undercut by companies in Asia that are mixing fuels with cheaper feedstocks and mislabeling them in order to qualify for incentives outlined by the bloc’s renewable energy targets. For example, a premium waste-based product could be mixed with other ingredients that is then passed off as being more sustainable than what it actually is.
Those concerns have been underscored by a surge in Chinese biodiesel exports to the EU. They’ve been accompanied by China importing volumes of palm wastes from Indonesia and Malaysia that some in the industry say are too large, spurring worries the cargoes include other ingredients. The flows to the EU are hurting biodiesel prices and margins for local producers, forcing some to halt output.
Selling biofuels in the EU is attractive because of incentives there, with fuels made from waste products fetching higher prices than those made directly from crops, as it’s more sustainable. The problem is that it’s hard to check what’s blended into biodiesel. Bloomberg
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Nigeria’s Palm Oil Imports From Malaysia Rises By 505% In Q1
Nigeria’s Crude Palm Oil (CPO) imports from Malaysia – top global producer – have risen by 505 percent in the first quarter of 2023 despite local production push by the federal government, data from Malaysian Palm Oil Council (MPOC) shows.
The country’s CPO import from Malaysia increased to 63,788 metric tons (MT) in the first three months, January to March from 10, 536MT in the same period in 2022, up by 53, 252 MT on a year-on-year basis, the data states.
In 2022, the country imported 227,035 MT of crude palm oil from Malaysia.
To boost local crude palm oil production, the federal government listed crude palm oil on the 41 items restricted from forex access.
Similarly, to protect the country’s palm oil industry and spur the industry growth, the Nigerian government had imported a 35 percent tariff (10 percent duty and 25 percent levy) on palm oil imports into the country.
Despite this, oil palm imports into the country are still on the rise owing to the huge demand-supply gap. LeadershipNG
Indonesia to ease palm oil domestic sales rules starting May
JAKARTA, April 27 (Reuters) - Indonesia will lower its mandatory domestic sales threshold for palm oil producers to 300,000 tonnes a month starting in May, the Trade Ministry said on Thursday, allowing more shipments of the widely-used oil to leave the country.
The world's top palm oil producer tightened exports earlier this year in anticipation of higher domestic demand for cooking oil ahead of the holy Islamic month of Ramadan, which started in late March this year.
Global markets were left shocked last year when Indonesia banned all exports of palm oil for three weeks to control soaring cooking oil prices at home. Since then the government has imposed the so-called Domestic Market Obligation (DMO) to control exports, a policy it tweaks regularly in accordance with market conditions.
From May, the government will tighten the ratio of palm oil exports to four times the volume producers have sold domestically, from six times the volume currently, but ease the ratio for some cooking oil products. Nasdaq/ Reuters
----------
Indonesia to gradually ease palm oil exports over nine months
Indonesia will ease its palm oil export rules gradually from May and reduce the domestic sales obligation for its palm oil producers from May, the trade ministry said April 27.
The world's largest vegetable oil exporter had tightened export quotas of palm oil companies in January to control the cost of cooking oils in the domestic market ahead of the Ramadan month starting in March.
As part of the latest ruling, Jakarta said that the ratio of export quotas for local palm oil companies will be set at four times of domestic sales requirements compared to the current quota of six times.
While this will tighten exports in the near term, the trade ministry said it will release quotas held back in the past few months over the next nine months. SPGlobal
-----------
Malaysia, Netherlands enjoy strong relations
KUALA LUMPUR: Malaysia and the Netherlands have enjoyed strong economic ties over the years, with both countries being maritime nations with trade-oriented economies.
As of 2021, statistics show that the total trade volume in goods and services between Malaysia and the Netherlands amounted to RM41.8 billion.
This makes the Netherlands Malaysia's second-largest trading partner in the European Union (EU). Historically, with solid investment ties, the Netherlands is one of the country's top five foreign investors.
He told the New Straits Times that Malaysia has historically has also invested around RM40 billion in the Netherlands, which accounted for 6.5 per cent of Malaysia's total direct investment abroad.
Werner also added that Malaysia is the most important source of palm oil to the Netherlands, where almost one-third of the palm oil in the Netherlands is derived from Malaysia. New Straits Times
-----------
Europe Battles Flood of Green Fuel Suspected to Be Fraudulent
Surge in Chinese biodiesel exports to EU sparks fraud concerns
Group warns EU biodiesel industry faces ‘existential’ threat
(Bloomberg) -- Europe’s push for more green fuel has helped build an industry in China that collects, recycles and ships waste such as used cooking oil. But a flood of biofuel is now threatening European producers and sparking fears about fraudulent exports.
Producers in the European Union are worried they’re being undercut by companies in Asia that are mixing fuels with cheaper feedstocks and mislabeling them in order to qualify for incentives outlined by the bloc’s renewable energy targets. For example, a premium waste-based product could be mixed with other ingredients that is then passed off as being more sustainable than what it actually is.
Those concerns have been underscored by a surge in Chinese biodiesel exports to the EU. They’ve been accompanied by China importing volumes of palm wastes from Indonesia and Malaysia that some in the industry say are too large, spurring worries the cargoes include other ingredients. The flows to the EU are hurting biodiesel prices and margins for local producers, forcing some to halt output.
Selling biofuels in the EU is attractive because of incentives there, with fuels made from waste products fetching higher prices than those made directly from crops, as it’s more sustainable. The problem is that it’s hard to check what’s blended into biodiesel. Bloomberg
-----------
Nigeria’s Palm Oil Imports From Malaysia Rises By 505% In Q1
Nigeria’s Crude Palm Oil (CPO) imports from Malaysia – top global producer – have risen by 505 percent in the first quarter of 2023 despite local production push by the federal government, data from Malaysian Palm Oil Council (MPOC) shows.
The country’s CPO import from Malaysia increased to 63,788 metric tons (MT) in the first three months, January to March from 10, 536MT in the same period in 2022, up by 53, 252 MT on a year-on-year basis, the data states.
In 2022, the country imported 227,035 MT of crude palm oil from Malaysia.
To boost local crude palm oil production, the federal government listed crude palm oil on the 41 items restricted from forex access.
Similarly, to protect the country’s palm oil industry and spur the industry growth, the Nigerian government had imported a 35 percent tariff (10 percent duty and 25 percent levy) on palm oil imports into the country.
Despite this, oil palm imports into the country are still on the rise owing to the huge demand-supply gap. LeadershipNG
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April 26, 2023
EU agrees sustainable aviation fuel mandates
The European Parliament and EU member states have reached a provisional agreement on sustainable aviation fuel (SAF) mandates from 2025.
The deal, which will oblige fuel suppliers to blend certain percentages of SAF and synthetic aviation fuels, notably e-fuels and hydrogen, with jet fuel from 2025, must be formally approved by parliament's plenary, likely to be later this year, and then by EU ministers.
The 'RefuelEU' regulation will be directly applicable in all 27 EU member states and does not allow countries to set national mandates. From 2025, at least 2pc of aviation fuels must be SAFs, and this increases to 6pc in 2030, 20pc in 2035, 34pc in 2040, 42pc in 2045 and 70pc in 2050.
In addition the regulation requires a specific proportion of synthetic aviation fuels, such as e-kerosene and hydrogen, that are defined as renewable fuels of non-biological origin (RFNBO). Synthetics must reach a total share of aviation fuels of 1.2pc in 2030, 2pc in 2032, 5pc in 2035 and 35pc in 2050. Argus Media
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EU-Parliament and Council reach deal on cleaner aviation fuels
The European Parliament and Council negotiators have agreed to increase the uptake of sustainable fuels such as advanced biofuels or hydrogen in the aviation sector.
A provisional deal, reached on April 24, between the European Parliament and Council negotiators on RefuelEU Aviation rules, sets the minimum share of sustainable aviation fuels to be made available at EU airports, to cut emissions and ensure the EU becomes climate neutral by 2050.
MEPs secured an agreement that, starting from 2025, at least 2% of aviation fuels will be green, with this share increasing every five years - 6% in 2030, 20% in 2035, 34% in 2040, 42% in 2045 and 70% in 2050.
In addition, a specific proportion of the fuel mix (1.2% in 2030, 2% in 2032, 5% in 2035 and progressively reaching 35% in 2050) must comprise synthetic fuels like e-kerosene.
According to the deal, the term ‘sustainable aviation fuels’ will include synthetic fuels, certain biofuels produced from agricultural or forestry residues, algae, bio-waste, used cooking oil or certain animal fats and recycled jet fuels produced from waste gases and waste plastic.
MEPs ensured that feed and food crop-based fuels and fuels derived from palm and soy materials will not be considered green as they do not align with the sustainability criteria. They also managed to include renewable hydrogen as part of a sustainable fuel mix, a promising technology that could progressively contribute to the decarbonisation of air transport. Biofuels News
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Planning to Power Your Car With Cooking Oil? Fat Chance
Is there any way the auto industry can withstand the onslaught of electric vehicles? Chevron Corp. is hoping so.
The oil producer sent three Toyota Motor Corp. models on a trip across the US last week with the objective of proving that its “renewable gasoline blend” might provide a better option for decarbonizing road transport than battery-powered vehicles. Fossil fuels make up less than half of the blend and it’s more than 40% less carbon-intensive than conventional gasoline, according to Chevron.
This isn’t just marketing. The company spent $3.15 billion last year taking over Renewable Energy Group Inc., or REG, a leading producer of biodiesel. Crucial to that deal was REG’s expertise in turning waste into fuel — roughly 70% of the feedstocks for its bio-refineries comes from waste oil and waste agricultural produce.
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US-Feds to Examine Deforestation for Agriculture
Biden's Earth Day Order Targets Ag Commodity Imports From Countries Linked to Deforestation
OMAHA (DTN) -- President Joe Biden on Earth Day traveled to Washington State to sign an executive order to protect old-growth forests that could lead to more scrutiny of agricultural imports from certain countries.
While much of the executive order focuses on language to protect U.S. forests, the order signed by the president on Friday also includes several provisions for the federal government to examine agricultural commodity imports from countries allowing or turning a blind eye to large amounts of deforestation.
To address global deforestation, the president's order directs the U.S. to "reduce or eliminate" the purchase of agricultural commodities grown on deforested lands that were done either illegally or in the recent past. Within a year, USDA, along with the Secretary of State, Treasury, Commerce, the U.S. Trade Representative, and Homeland Security will submit a report on possible legislation regarding the "feasibility of limiting or removing specific commodities grown on land deforested either illegally or after Dec. 31, 2020, from agricultural supply chains."
Added to that, the federal departments will provide an analysis with private industries including "major agricultural commodity buyers, traders, financial institutions," and others to "voluntarily reduce or eliminate the purchase of such commodities and incentivize sourcing of sustainably produced agricultural commodities."
POSSIBLE IMPACT ON PALM OIL, BEEF DTNPF
EU agrees sustainable aviation fuel mandates
The European Parliament and EU member states have reached a provisional agreement on sustainable aviation fuel (SAF) mandates from 2025.
The deal, which will oblige fuel suppliers to blend certain percentages of SAF and synthetic aviation fuels, notably e-fuels and hydrogen, with jet fuel from 2025, must be formally approved by parliament's plenary, likely to be later this year, and then by EU ministers.
The 'RefuelEU' regulation will be directly applicable in all 27 EU member states and does not allow countries to set national mandates. From 2025, at least 2pc of aviation fuels must be SAFs, and this increases to 6pc in 2030, 20pc in 2035, 34pc in 2040, 42pc in 2045 and 70pc in 2050.
In addition the regulation requires a specific proportion of synthetic aviation fuels, such as e-kerosene and hydrogen, that are defined as renewable fuels of non-biological origin (RFNBO). Synthetics must reach a total share of aviation fuels of 1.2pc in 2030, 2pc in 2032, 5pc in 2035 and 35pc in 2050. Argus Media
----------
EU-Parliament and Council reach deal on cleaner aviation fuels
The European Parliament and Council negotiators have agreed to increase the uptake of sustainable fuels such as advanced biofuels or hydrogen in the aviation sector.
A provisional deal, reached on April 24, between the European Parliament and Council negotiators on RefuelEU Aviation rules, sets the minimum share of sustainable aviation fuels to be made available at EU airports, to cut emissions and ensure the EU becomes climate neutral by 2050.
MEPs secured an agreement that, starting from 2025, at least 2% of aviation fuels will be green, with this share increasing every five years - 6% in 2030, 20% in 2035, 34% in 2040, 42% in 2045 and 70% in 2050.
In addition, a specific proportion of the fuel mix (1.2% in 2030, 2% in 2032, 5% in 2035 and progressively reaching 35% in 2050) must comprise synthetic fuels like e-kerosene.
According to the deal, the term ‘sustainable aviation fuels’ will include synthetic fuels, certain biofuels produced from agricultural or forestry residues, algae, bio-waste, used cooking oil or certain animal fats and recycled jet fuels produced from waste gases and waste plastic.
MEPs ensured that feed and food crop-based fuels and fuels derived from palm and soy materials will not be considered green as they do not align with the sustainability criteria. They also managed to include renewable hydrogen as part of a sustainable fuel mix, a promising technology that could progressively contribute to the decarbonisation of air transport. Biofuels News
----------
Planning to Power Your Car With Cooking Oil? Fat Chance
Is there any way the auto industry can withstand the onslaught of electric vehicles? Chevron Corp. is hoping so.
The oil producer sent three Toyota Motor Corp. models on a trip across the US last week with the objective of proving that its “renewable gasoline blend” might provide a better option for decarbonizing road transport than battery-powered vehicles. Fossil fuels make up less than half of the blend and it’s more than 40% less carbon-intensive than conventional gasoline, according to Chevron.
This isn’t just marketing. The company spent $3.15 billion last year taking over Renewable Energy Group Inc., or REG, a leading producer of biodiesel. Crucial to that deal was REG’s expertise in turning waste into fuel — roughly 70% of the feedstocks for its bio-refineries comes from waste oil and waste agricultural produce.
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US-Feds to Examine Deforestation for Agriculture
Biden's Earth Day Order Targets Ag Commodity Imports From Countries Linked to Deforestation
OMAHA (DTN) -- President Joe Biden on Earth Day traveled to Washington State to sign an executive order to protect old-growth forests that could lead to more scrutiny of agricultural imports from certain countries.
While much of the executive order focuses on language to protect U.S. forests, the order signed by the president on Friday also includes several provisions for the federal government to examine agricultural commodity imports from countries allowing or turning a blind eye to large amounts of deforestation.
To address global deforestation, the president's order directs the U.S. to "reduce or eliminate" the purchase of agricultural commodities grown on deforested lands that were done either illegally or in the recent past. Within a year, USDA, along with the Secretary of State, Treasury, Commerce, the U.S. Trade Representative, and Homeland Security will submit a report on possible legislation regarding the "feasibility of limiting or removing specific commodities grown on land deforested either illegally or after Dec. 31, 2020, from agricultural supply chains."
Added to that, the federal departments will provide an analysis with private industries including "major agricultural commodity buyers, traders, financial institutions," and others to "voluntarily reduce or eliminate the purchase of such commodities and incentivize sourcing of sustainably produced agricultural commodities."
POSSIBLE IMPACT ON PALM OIL, BEEF DTNPF
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April 25, 2023
EU-Corporate sustainability: firms to tackle impact on human rights and environment
The Legal Affairs Committee agreed on Tuesday on new rules to integrate human rights and environmental impact into companies’ governance.
With 19 votes against 3 and 3 abstentions, MEPs on the Legal Affairs Committee adopted their position on so-called corporate sustainability due diligence. Firms would be obliged to identify, and where necessary prevent, end or mitigate the negative impact of their activities, including that of their business partners, on human rights and the environment. This includes child labour, slavery, labour exploitation, pollution, environmental degradation and biodiversity loss.
More firms to be liable for impact on human rights and environment
Companies would also be required to evaluate their value-chain partners when carrying out their “due diligence”, MEPs say. This should include not only suppliers, but also activities related to sale, distribution and transport. Adverse impact would have to be mitigated and remedied by adapting the company’s business model, providing support to SMEs or seeking contractual assurances. Europarl
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What Does the New EU Deforestation Ban Mean for Business?Once individual EU countries formally approve the new rule, large companies will have 18 months to comply and small companies will have two years. Companies that do not comply with the new law will face fines of up to 4 percent of the company’s total turnover in the EU.
This move has alarmed growers and policymakers in countries most likely to be affected. Malaysia has threatened to stop exporting palm oil to the EU, as smallholder farms in Malaysia say they are unable to comply with the geolocation requirements. Brazilian agribusiness giant ABAG has also condemned the new law.
However, other countries have worked to stay ahead of the legislation. Ivory Coast is the world’s largest cocoa producer, and its Minister of Agriculture has already set up a registration and geolocation system for cocoa farmers across the country. Producers have been issued identity cards with the geolocation coordinates of their farms, and unregistered farms are not permitted to sell or market their cocoa. The Ivorian agriculture ministry is monitoring the average output of cocoa farms for any sudden growth that would indicate land expansion, and it has threatened prosecution for producers that engage in deforestation. Triple Pundit
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MPOC Europe Alert No. 24-25 April 2023
The EU’s Renewable Energy Directive (RED III) promotes deforestation in the EU’s outermost regions for biofuel production
On 30 March 2023, the Council of the EU and the European Parliament reached provisional agreement on the revision of the EU’s Renewable Energy Directive (RED III). The RED III reconfirms that palm oil is the only biofuel feedstock that the EU considers as having a high indirect land-use change (ILUC) risk, and which is therefore to be phased-out for purposes of being counted towards the EU’s renewable energy target by 2030.
It must be noted that, under the RED III, the EU’s sustainability and greenhouse gas emissions saving criteria for biofuels, bioliquids and biomass fuels will apply more loosely in the EU’s overseas territories, such as French Guiana, in order to promote local economic development. However, environmentalists claim that this exception introduced by the RED III would lead to increased deforestation in these regions.
Under the EU rules, for purposes of being counted towards the EU’s renewable energy targets, biofuel feedstocks must meet certain criteria and, for example, may not be sourced from land that was primary forest. At the same time, the EU’s outermost regions, namely the Azores, the Canary Islands, Guadeloupe, French Guiana, Madeira, Martinique, Mayotte, la Réunion, and Saint-Martin, will soon benefit from an exception from the sustainability and greenhouse gas emissions saving criteria, which will apply if the biomass fuels and bioliquids are used “to produce electricity or heating or cooling”, so as to ensure “access to safe and secured energy” and to “biofuels especially for the space sector and related astrophysics activities”. MPOC Europe
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MPOB sees palm oil and palm-based product exports to China rising this year
KUALA LUMPUR (April 25): The Malaysian Palm Oil Board (MPOB) expects Malaysia’s exports of palm oil and palm-based products to China to increase this year.
In a statement on Tuesday (April 25), the MPOB said its memorandum of understanding with the China Chamber of Commerce for Import and Export of Foodstuffs, Native Produce, and Animal By-Products further broadened cooperation between the two countries in the trade of palm oil, apart from strengthening Malaysia’s position and market share in the Chinese market.
MPOB director general Datuk Dr Ahmad Parveez Ghulam Kadir said the MPOB had broadened the use of palm oil in value-added food industries through its research and development initiatives, helping to secure the market for Malaysian palm oil.
“These include palm-based specialty fats for contemporary moon cakes, palm oil application in Xinjiang naan, red palm-based extruded snacks, palm-based milk tablets, palm-based Tibetan butter tea, red palm oil-based hotpot paste, palm powder fats as feed additives for dairy cattle and red palm oil as feed for hairy crabs,” he said.
Ahmad Parveez said the cooperation also allows China to participate in the technological exploration in oil palm mechanisation in Malaysia, which will help to increase productivity and reduce reliance on human labour in the plantations. The Edge Markets
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EU-Corporate sustainability: firms to tackle impact on human rights and environment
The Legal Affairs Committee agreed on Tuesday on new rules to integrate human rights and environmental impact into companies’ governance.
With 19 votes against 3 and 3 abstentions, MEPs on the Legal Affairs Committee adopted their position on so-called corporate sustainability due diligence. Firms would be obliged to identify, and where necessary prevent, end or mitigate the negative impact of their activities, including that of their business partners, on human rights and the environment. This includes child labour, slavery, labour exploitation, pollution, environmental degradation and biodiversity loss.
More firms to be liable for impact on human rights and environment
Companies would also be required to evaluate their value-chain partners when carrying out their “due diligence”, MEPs say. This should include not only suppliers, but also activities related to sale, distribution and transport. Adverse impact would have to be mitigated and remedied by adapting the company’s business model, providing support to SMEs or seeking contractual assurances. Europarl
----------
What Does the New EU Deforestation Ban Mean for Business?Once individual EU countries formally approve the new rule, large companies will have 18 months to comply and small companies will have two years. Companies that do not comply with the new law will face fines of up to 4 percent of the company’s total turnover in the EU.
This move has alarmed growers and policymakers in countries most likely to be affected. Malaysia has threatened to stop exporting palm oil to the EU, as smallholder farms in Malaysia say they are unable to comply with the geolocation requirements. Brazilian agribusiness giant ABAG has also condemned the new law.
However, other countries have worked to stay ahead of the legislation. Ivory Coast is the world’s largest cocoa producer, and its Minister of Agriculture has already set up a registration and geolocation system for cocoa farmers across the country. Producers have been issued identity cards with the geolocation coordinates of their farms, and unregistered farms are not permitted to sell or market their cocoa. The Ivorian agriculture ministry is monitoring the average output of cocoa farms for any sudden growth that would indicate land expansion, and it has threatened prosecution for producers that engage in deforestation. Triple Pundit
----------
MPOC Europe Alert No. 24-25 April 2023
The EU’s Renewable Energy Directive (RED III) promotes deforestation in the EU’s outermost regions for biofuel production
On 30 March 2023, the Council of the EU and the European Parliament reached provisional agreement on the revision of the EU’s Renewable Energy Directive (RED III). The RED III reconfirms that palm oil is the only biofuel feedstock that the EU considers as having a high indirect land-use change (ILUC) risk, and which is therefore to be phased-out for purposes of being counted towards the EU’s renewable energy target by 2030.
It must be noted that, under the RED III, the EU’s sustainability and greenhouse gas emissions saving criteria for biofuels, bioliquids and biomass fuels will apply more loosely in the EU’s overseas territories, such as French Guiana, in order to promote local economic development. However, environmentalists claim that this exception introduced by the RED III would lead to increased deforestation in these regions.
Under the EU rules, for purposes of being counted towards the EU’s renewable energy targets, biofuel feedstocks must meet certain criteria and, for example, may not be sourced from land that was primary forest. At the same time, the EU’s outermost regions, namely the Azores, the Canary Islands, Guadeloupe, French Guiana, Madeira, Martinique, Mayotte, la Réunion, and Saint-Martin, will soon benefit from an exception from the sustainability and greenhouse gas emissions saving criteria, which will apply if the biomass fuels and bioliquids are used “to produce electricity or heating or cooling”, so as to ensure “access to safe and secured energy” and to “biofuels especially for the space sector and related astrophysics activities”. MPOC Europe
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MPOB sees palm oil and palm-based product exports to China rising this year
KUALA LUMPUR (April 25): The Malaysian Palm Oil Board (MPOB) expects Malaysia’s exports of palm oil and palm-based products to China to increase this year.
In a statement on Tuesday (April 25), the MPOB said its memorandum of understanding with the China Chamber of Commerce for Import and Export of Foodstuffs, Native Produce, and Animal By-Products further broadened cooperation between the two countries in the trade of palm oil, apart from strengthening Malaysia’s position and market share in the Chinese market.
MPOB director general Datuk Dr Ahmad Parveez Ghulam Kadir said the MPOB had broadened the use of palm oil in value-added food industries through its research and development initiatives, helping to secure the market for Malaysian palm oil.
“These include palm-based specialty fats for contemporary moon cakes, palm oil application in Xinjiang naan, red palm-based extruded snacks, palm-based milk tablets, palm-based Tibetan butter tea, red palm oil-based hotpot paste, palm powder fats as feed additives for dairy cattle and red palm oil as feed for hairy crabs,” he said.
Ahmad Parveez said the cooperation also allows China to participate in the technological exploration in oil palm mechanisation in Malaysia, which will help to increase productivity and reduce reliance on human labour in the plantations. The Edge Markets
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April 24, 2023
UK businesses to get more exposure to Papua New Guinea produce
Following an economic partnership agreement with PNG in 2019 – necessitated by the UK’s departure from the European Union – the UK’s trade partnership program (TPP) subsequently funded support for small coffee producers in PNG.
It saw five local SMEs receive advice on marketing and branding, was well as attending trade fairs across the UK and Europe.
‘These trade fairs have helped Europe’s big coffee buyers understand the PNG coffee market, while local growers now have a better idea of what these markets want,’ Keith Scott the British High Commissioner to PNG tells Business Advantage PNG.
While total trade in goods and services (exports plus imports) between the UK and PNG was £205 million (K898 million) in 2022 – up 35.8 per cent on 2021 – Scott notes that 91 per cent of the huge £150 million (K657 million) surplus in PNG’s favour can be attributed to palm oil from New Britain Province. Business Advantage PNG
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Kenya-Millers venture into cooking oil business in hope for revenue growth
Millers in Kenya are diversifying into the cooking oil business to shore up muted revenue deflected by the controversial government's maize subsidy plan.
Among them is Kitui Flour Mills, the parent company for wheat and maize flour brand Unga wa Dola, which has ventured into the sub-sector with its debut brand, 'Dola Cooking Oil', less than four months after Capwell and Eni hinted of going the same route.
In a statement, Kitui Flour Mills said the launch of cooking oil products is part of its diversification strategy aimed at meeting consumer demands for high-quality food.
"The rising living standards and growing consumer demands for safe, high-quality food is evolving in the country. It is against this backdrop that we saw the potential to expand downstream to meet these expectations,'' said Kitui Flour Mills finance director Anwar Bajber.
The launch of the edible oil to be manufactured in Kilifi County also seeks to spur the local economy with job creation at the company’s Vipingo-based plant. The StarKE
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Amidst India’s oil palm expansion mission, early growers are quitting it
India, the world's largest palm oil importer, wants to expand domestic cultivation. But a lack of roadway connectivity is spoiling the country's mission.
At a time India is hoping to turn its northeastern region into the country’s hub of oil palm, Mizoram, the first northeastern state to start oil palm cultivation 15 years ago, has recorded a massive reduction of the area under cultivation, as farmers have been giving up oil palm cultivation for other crops. Some farmers are switching back to their old crops, while some are opting for areca nut and orange.
“The potential area for oil palm identified was 66,791 hectares (3.16 per cent of the state’s geographical area). Then, 26,730 hectares were covered under oil palm cultivation. After the recent survey, only 3,398 hectare is under active cultivation,” said a statement issued from the office of the state’s governor in March following a stock-taking meeting.
While the state’s agriculture department’s records show 10,843 farmers were involved in oil palm cultivation over 26,680 hectares of land in 197 villages as of July 2021, the latest information shows only 2,733 farmers are involved in the cultivation in 193 villages. Eco Business
UK businesses to get more exposure to Papua New Guinea produce
Following an economic partnership agreement with PNG in 2019 – necessitated by the UK’s departure from the European Union – the UK’s trade partnership program (TPP) subsequently funded support for small coffee producers in PNG.
It saw five local SMEs receive advice on marketing and branding, was well as attending trade fairs across the UK and Europe.
‘These trade fairs have helped Europe’s big coffee buyers understand the PNG coffee market, while local growers now have a better idea of what these markets want,’ Keith Scott the British High Commissioner to PNG tells Business Advantage PNG.
While total trade in goods and services (exports plus imports) between the UK and PNG was £205 million (K898 million) in 2022 – up 35.8 per cent on 2021 – Scott notes that 91 per cent of the huge £150 million (K657 million) surplus in PNG’s favour can be attributed to palm oil from New Britain Province. Business Advantage PNG
----------
Kenya-Millers venture into cooking oil business in hope for revenue growth
Millers in Kenya are diversifying into the cooking oil business to shore up muted revenue deflected by the controversial government's maize subsidy plan.
Among them is Kitui Flour Mills, the parent company for wheat and maize flour brand Unga wa Dola, which has ventured into the sub-sector with its debut brand, 'Dola Cooking Oil', less than four months after Capwell and Eni hinted of going the same route.
In a statement, Kitui Flour Mills said the launch of cooking oil products is part of its diversification strategy aimed at meeting consumer demands for high-quality food.
"The rising living standards and growing consumer demands for safe, high-quality food is evolving in the country. It is against this backdrop that we saw the potential to expand downstream to meet these expectations,'' said Kitui Flour Mills finance director Anwar Bajber.
The launch of the edible oil to be manufactured in Kilifi County also seeks to spur the local economy with job creation at the company’s Vipingo-based plant. The StarKE
----------
Amidst India’s oil palm expansion mission, early growers are quitting it
India, the world's largest palm oil importer, wants to expand domestic cultivation. But a lack of roadway connectivity is spoiling the country's mission.
At a time India is hoping to turn its northeastern region into the country’s hub of oil palm, Mizoram, the first northeastern state to start oil palm cultivation 15 years ago, has recorded a massive reduction of the area under cultivation, as farmers have been giving up oil palm cultivation for other crops. Some farmers are switching back to their old crops, while some are opting for areca nut and orange.
“The potential area for oil palm identified was 66,791 hectares (3.16 per cent of the state’s geographical area). Then, 26,730 hectares were covered under oil palm cultivation. After the recent survey, only 3,398 hectare is under active cultivation,” said a statement issued from the office of the state’s governor in March following a stock-taking meeting.
While the state’s agriculture department’s records show 10,843 farmers were involved in oil palm cultivation over 26,680 hectares of land in 197 villages as of July 2021, the latest information shows only 2,733 farmers are involved in the cultivation in 193 villages. Eco Business
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April 22, 2023
Cocoa sector put on notice as European Parliament adopts new law to fight global deforestation
The European Parliament has formally adopted a new law to fight global deforestation with cocoa, coffee, palm-oil, soya, wood, rubber, charcoal printed paper products and cattle covered by the new rules, which obliges companies to ensure products sold in the EU have not led to deforestation and forest degradation. Confectionery News
----------
Food companies braced for cost challenges and paperwork as landmark deforestation law is passed
The pressure is now on for food and beverage companies to source deforestation-free products after the European Parliament formally adopted a ground-breaking new law to stop products causing forest destruction from being imported, sold in or exported from the EU. Food Navigator
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Cargill Euro Bonds Boomed Despite EU Deforestation Law Risks
(Bloomberg) -- Cargill Inc.’s first euro bond in almost 10 years met with huge demand from investors even though questions remain on how the food trader will align itself with new European Union rules designed to prevent deforestation.
The sale gathered demand that was nine times the size of the offering, the highest for a European corporate bond since January, according to data compiled by Bloomberg.
For investors, the securities were a once-in-a decade opportunity to gain exposure in euros to the largest private company in the US. Cargill is rated investment grade and plays a global role in commodities, making it appealing at a time when fund managers are seeking safer investments in the wake of banking-sector turmoil.
The success of the bond sale is the most recent example of how climate and sustainability considerations take a back seat in a bruised bond market that has turned averse to risk, even when fresh regulation could hurt returns in the long run. Bloomberg
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Sarawak planters association blasts EU campaign to exclude Dayak smallholders from entire palm oil supply chain
MIRI, April 22 — Sarawak Dayak Oil Palm Planters Association (Doppa) has hit out at what it sees is an ongoing campaign by the European Union (EU) to exclude indigenous Dayak smallholders from the entire palm oil supply chain.
Doppa president Napolean R Ningkos said the achievements of the Dayaks in Sarawak, who have chosen to embrace the palm oil industry, are now threatened by the increasing call of the EU to ban palm oil imports.
“The EU’s ambassador to Malaysia has denied that there is a ban on palm oil imports to the EU. Yet we see that member states of the EU have banned palm oil from subsidies granted to sources of renewable energy.
“The Dayak people share the EU’s vision for a sustainable society. Some of the indigenous Dayak smallholders have even gone the expensive way of certifying their farms under the RSPO (Roundtable on Sustainable Palm Oil) to share their common views for sustainable palm oil.
“Unfortunately, most of the indigenous Dayak smallholders in Sarawak cannot afford to pay for NGO certifications. Given the choice of whether to spend our hard-earned income on NGO certification or our children’s college funds, we would prefer to save for our children’s education,” he said in a statement. Malay Mail
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Africa-What can the EU law do about imported deforestation?
The European Parliament has just passed new legislation that will ban the sale of deforestation-related goods in member states. However, African researchers and specialists doubt the effectiveness of such a European measure.
Ivory Coast has already committed to it
Once the text is in force, companies will have 18 months to implement the measure. Smaller companies will have a longer period. This will include providing the relevant authorities with relevant information such as geolocation details. These checks will be carried out using satellite monitoring tools. If companies fail to comply with the rules, they could be fined up to 4% of their suppliers’ annual turnover on the EU market.
Ivory Coast, the world’s largest cocoa producer, believes that it is ahead of the law in setting up a system for geolocating production. In the West African country, more than one million cocoa producers have been registered. They have been issued with name cards and the geolocation coordinates of their plots. “If you are not registered, your products cannot be marketed. If you usually produce five tonnes of cocoa, but we see that for this season you have gone beyond that, it means that you are at fault and you will be prosecuted,” explains Kobenan Kouassi Adjoumani, the Ivorian Minister of Agriculture. Afrik 21
----------
Central Africa: Battling deforestation, balancing development
The challenge of cleaning up commodity chains while maintaining livelihoods
In the struggle to curtail forest loss and degradation, experts writing in Chapter 8 of the Central Africa Forest Observatory (OFAC)’s Congo Basin Forests – State of the Forests 2021 report say that social and economic consequences for Central African commodity-producing countries must be kept front of mind.
Ambiguities in the definition of the word “forest”, and consequently “deforestation”, contribute to the challenge at hand. The UN’s Food and Agriculture Organization (FAO), the European Union, and the UN Framework Convention on Climate Change (UNFCCC), among other entities and countries, have each come out with their own definitions, which depend on different variables.
According to report co-authors Louis Defo – a senior project manager at Proforest – there is a need to make precise reference to the retained definition of forest, and to the method used to estimate its area, when quantifying deforestation. “The deforestation estimated by FAO at the level of each country will neither correspond to that estimated from satellite data as carried out by the University of Maryland, nor especially to that estimated by approximately 75% of the countries, whose national definition differs from that of FAO,” said Defo. In Central Africa, four countries – Cameroon, Equatorial Guinea, Congo, and Democratic Republic of the Congo – have established a national definition of forest, while the other seven countries of the sub-region are in the process of doing so.
Direct drivers of deforestation in Central Africa are the production and exploitation of commodities which involve a change in land use. National economies in the sub-region are not very diversified and depend heavily on the export of agricultural commodities and mining products, with palm oil, cocoa, coffee, rubber, cotton, and timber being the major deforestation-heavy sectors. CIFOR
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EU-Oleochemical, palm importers confused on deforestation
European oleochemical and palm oil importers are struggling to understand the ramifications of the new EU deforestation regulation (EUDR), and sources told Argus there are details that need to be clarified.
The EUDR, approved by the European Parliament on 20 April, surprised and raised concerns that it could limit key feedstocks for oleochemicals production, and palm oil and derivatives imports to Europe. Around 64pc of these are from Malaysia and Indonesia, two of the worst positioned countries on traceability, according to sources.
"I'm in shock," a glycerine producer said after finding that glycerine with over 95pc purity was among the products affected by the regulation. "Considering the information in the new regulation, I really cannot understand what information we would need to submit." Argus Media
Cocoa sector put on notice as European Parliament adopts new law to fight global deforestation
The European Parliament has formally adopted a new law to fight global deforestation with cocoa, coffee, palm-oil, soya, wood, rubber, charcoal printed paper products and cattle covered by the new rules, which obliges companies to ensure products sold in the EU have not led to deforestation and forest degradation. Confectionery News
----------
Food companies braced for cost challenges and paperwork as landmark deforestation law is passed
The pressure is now on for food and beverage companies to source deforestation-free products after the European Parliament formally adopted a ground-breaking new law to stop products causing forest destruction from being imported, sold in or exported from the EU. Food Navigator
----------
Cargill Euro Bonds Boomed Despite EU Deforestation Law Risks
(Bloomberg) -- Cargill Inc.’s first euro bond in almost 10 years met with huge demand from investors even though questions remain on how the food trader will align itself with new European Union rules designed to prevent deforestation.
The sale gathered demand that was nine times the size of the offering, the highest for a European corporate bond since January, according to data compiled by Bloomberg.
For investors, the securities were a once-in-a decade opportunity to gain exposure in euros to the largest private company in the US. Cargill is rated investment grade and plays a global role in commodities, making it appealing at a time when fund managers are seeking safer investments in the wake of banking-sector turmoil.
The success of the bond sale is the most recent example of how climate and sustainability considerations take a back seat in a bruised bond market that has turned averse to risk, even when fresh regulation could hurt returns in the long run. Bloomberg
----------
Sarawak planters association blasts EU campaign to exclude Dayak smallholders from entire palm oil supply chain
MIRI, April 22 — Sarawak Dayak Oil Palm Planters Association (Doppa) has hit out at what it sees is an ongoing campaign by the European Union (EU) to exclude indigenous Dayak smallholders from the entire palm oil supply chain.
Doppa president Napolean R Ningkos said the achievements of the Dayaks in Sarawak, who have chosen to embrace the palm oil industry, are now threatened by the increasing call of the EU to ban palm oil imports.
“The EU’s ambassador to Malaysia has denied that there is a ban on palm oil imports to the EU. Yet we see that member states of the EU have banned palm oil from subsidies granted to sources of renewable energy.
“The Dayak people share the EU’s vision for a sustainable society. Some of the indigenous Dayak smallholders have even gone the expensive way of certifying their farms under the RSPO (Roundtable on Sustainable Palm Oil) to share their common views for sustainable palm oil.
“Unfortunately, most of the indigenous Dayak smallholders in Sarawak cannot afford to pay for NGO certifications. Given the choice of whether to spend our hard-earned income on NGO certification or our children’s college funds, we would prefer to save for our children’s education,” he said in a statement. Malay Mail
----------
Africa-What can the EU law do about imported deforestation?
The European Parliament has just passed new legislation that will ban the sale of deforestation-related goods in member states. However, African researchers and specialists doubt the effectiveness of such a European measure.
Ivory Coast has already committed to it
Once the text is in force, companies will have 18 months to implement the measure. Smaller companies will have a longer period. This will include providing the relevant authorities with relevant information such as geolocation details. These checks will be carried out using satellite monitoring tools. If companies fail to comply with the rules, they could be fined up to 4% of their suppliers’ annual turnover on the EU market.
Ivory Coast, the world’s largest cocoa producer, believes that it is ahead of the law in setting up a system for geolocating production. In the West African country, more than one million cocoa producers have been registered. They have been issued with name cards and the geolocation coordinates of their plots. “If you are not registered, your products cannot be marketed. If you usually produce five tonnes of cocoa, but we see that for this season you have gone beyond that, it means that you are at fault and you will be prosecuted,” explains Kobenan Kouassi Adjoumani, the Ivorian Minister of Agriculture. Afrik 21
----------
Central Africa: Battling deforestation, balancing development
The challenge of cleaning up commodity chains while maintaining livelihoods
In the struggle to curtail forest loss and degradation, experts writing in Chapter 8 of the Central Africa Forest Observatory (OFAC)’s Congo Basin Forests – State of the Forests 2021 report say that social and economic consequences for Central African commodity-producing countries must be kept front of mind.
Ambiguities in the definition of the word “forest”, and consequently “deforestation”, contribute to the challenge at hand. The UN’s Food and Agriculture Organization (FAO), the European Union, and the UN Framework Convention on Climate Change (UNFCCC), among other entities and countries, have each come out with their own definitions, which depend on different variables.
According to report co-authors Louis Defo – a senior project manager at Proforest – there is a need to make precise reference to the retained definition of forest, and to the method used to estimate its area, when quantifying deforestation. “The deforestation estimated by FAO at the level of each country will neither correspond to that estimated from satellite data as carried out by the University of Maryland, nor especially to that estimated by approximately 75% of the countries, whose national definition differs from that of FAO,” said Defo. In Central Africa, four countries – Cameroon, Equatorial Guinea, Congo, and Democratic Republic of the Congo – have established a national definition of forest, while the other seven countries of the sub-region are in the process of doing so.
Direct drivers of deforestation in Central Africa are the production and exploitation of commodities which involve a change in land use. National economies in the sub-region are not very diversified and depend heavily on the export of agricultural commodities and mining products, with palm oil, cocoa, coffee, rubber, cotton, and timber being the major deforestation-heavy sectors. CIFOR
----------
EU-Oleochemical, palm importers confused on deforestation
European oleochemical and palm oil importers are struggling to understand the ramifications of the new EU deforestation regulation (EUDR), and sources told Argus there are details that need to be clarified.
The EUDR, approved by the European Parliament on 20 April, surprised and raised concerns that it could limit key feedstocks for oleochemicals production, and palm oil and derivatives imports to Europe. Around 64pc of these are from Malaysia and Indonesia, two of the worst positioned countries on traceability, according to sources.
"I'm in shock," a glycerine producer said after finding that glycerine with over 95pc purity was among the products affected by the regulation. "Considering the information in the new regulation, I really cannot understand what information we would need to submit." Argus Media
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April 21, 2023
ECB says 16 euro zone banks fall short of climate demands, may face penalties
FRANKFURT (Reuters) - Sixteen euro zone banks are still failing to disclose enough information about their exposure to climate risk and may face fines or even higher capital requirements from the European Central Bank, the ECB said on Friday.
European regulators have been putting pressure on banks to factor in risks relating to climate change, from floods and droughts to a transition to new energy sources, in the way they do business.
The ECB said 16 banks, or 15% of those it assessed, were still falling short of the reporting standards, which include identifying any material exposure to climate risk, describing its impact on the bank's business and spelling out how it would deal with it. It did not disclose the banks' identities.
While this was an improvement from a year ago, when 45% of banks were coming up short, the ECB said lenders needed to make "further improvements" to meet the requirements, which come into effect in June, or face consequences.
"Further improvements are urgently needed," Frank Elderson, vice-chair of the ECB's Supervisory Board, said. "We will take the appropriate supervisory actions to ensure that banks comply." Marketscreener/ REUTERS
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Indonesia, Malaysia palm waste exports raises questions
ndonesian and Malaysian exports of palm oil wastes used as biofuels feedstocks rose sharply during January-February compared with previous years, particularly to China, raising market participants' concerns about alleged fraudulent practices.
Indonesian palm oil waste exports to China under HS codes starting 2306 and 3823 more than trebled from a year earlier to 730,000t during January-February, up from 225,000t during the same months in 2022. Shipments to other destinations remained more stable, pushing total exports up by 30pc to 2.19mn t.
Exports to China under 2306, which include palm oil mill effluent (Pome) and palm acid oil (PAO), rose by almost fivefold from a year earlier to 382,000t during January-February 2023. While China-bound exports under code 3823, including PAO and palm fatty acid distillate (Pfad), rose by 142pc to 348,000t.
Total Malaysian exports under 3823, which is used for Pome, PAO and Pfad from that country, rose by 13pc to 413,000t during January-February. Sharp year-on-year rises to China, the Netherlands and Singapore drove the increase, rising by 46pc, 48pc and 122pc to 81,000t, 75,000t and 52,000t respectively.
The rate of growth in these flows is of concern to market participants, as supply of these wastes is limited by palm oil production volumes that have remained relatively stagnant over the same period. Indonesian crude palm oil (CPO) output was flat from a year earlier at around 3.9mn t in January, the last month for which data is available from the country's palm oil association. Malaysian output rose by 3pc to 3.8mn t for January-March, according to the Malaysia Palm Oil Board.
Total potential output of Pome oil, defined by International Sustainability and Carbon Certification (ISCC) as the oil fraction from unavoidable wastewater produced at a palm oil mill, varies depending on technology but should be between 1-2pc of CPO production volume. PAO is defined by the Palm Oil Refiners Association of Malaysia as a by-product from chemical alkali CPO refining. Output should be negligible with most refining capacity in Malaysia and Indonesia using physical not chemical processes.
Recent export volumes under 2306 and 3823 seem more than what can reasonably be available because of these limitations, market participants said.
Paper trail concerns Argus Media---------
OPINION-Southeast Asia companies must recognize climate change risks
Timely corporate action will yield tremendous growth opportunities
Southeast Asia is fast emerging as one of the most competitive engines of global economic activity, as reflected in average gross domestic product growth of 5% over the last decade.
This growth, though, has not come without costs, including accelerated urbanization and rising energy demand, and has led to a surge in greenhouse gas emissions.
Southeast Asia was responsible for about 6.5% of global energy-related carbon dioxide emissions in 2020, a steep increase from 2.8% in 1990. Such unchecked growth in emissions raises the risk of raising global temperatures by 3.2 C. That in turn could cause the region's GDP to fall by up to 37%, according to estimates by the Swiss Re Institute.
Beyond the economic cost, such a rise in heat would have far-reaching social and health implications and have a long-term impact on livelihoods. Indeed, almost 12% of Southeast Asia's population is now at risk of displacement as a result of rising sea levels.
Solving the climate challenge poses a particularly complex problem for Southeast Asia, home to more than 600 ethnic groups and over 1,000 languages and dialects. Given the diversity and nuances of the region, delivering a just energy transition that balances security, affordability and sustainability will be vital to address both mitigation and adaptation through fair and inclusive action and to ensure that no community is left behind.
There is no single solution to address the complex challenges faced by corporations in this complex region. However, Southeast Asia is uniquely positioned to drive tangible change through climate action.
If corporations seize this opportunity, they can play a critical role in tackling overarching climate risks. Not only will they be able to accelerate change, but they also stand to reap enormous benefits from making lasting corporate climate action.
A new World Economic Forum white paper created with Boston Consulting Group and SAP, "Accelerating Asia's advantage: a guide to corporate climate action," explores this critical imperative for change. Nikkei Asia
----------
Dayak Oil Palm Planters Association (DOPPA) Launches New Website and Promptly Challenges EUDR
Welcome to Sarawak Dayak Oil Palm Planters Association (DOPPA) website, it is my pleasure to pen down some of DOPPA’s struggles in protecting the interest of the Indigenous Dayak Smallholders in Sarawak, Malaysia. Based on Malaysian Palm Oil Certification Council (MPOCC) data end of the year 2022, more than 40,500 independent smallholders are covering an area of more than 234,812 hectares of land in Sarawak planted with oil palm. The smallholders in Sarawak represent 27% of the state’s total agriculture area.
For a long, the indigenous farmers whose main livelihood is farming have been ignored in every discussion of their role in aspects related to climate change amongst other major issues. Therefore, it was inspiring for the indigenous Dayak communities to hear the calls for the inclusion of indigenous peoples to fight climate change at COP15 in Montreal, Canada. The traditional Dayak culture and livelihoods are a perfect example of a sustainable society where we live within the means of what nature provides. It has therefore saddened and angered the Dayak communities to see an ongoing campaign by the European Union (EU) to exclude the Indigenous Dayak smallholders from the entire palm oil supply chain irrespective of the fact that they have already been fully involved in cultivation and on most of the same land for generations but under shifting agriculture oil palm, to improve our livelihoods.
Our ancestors depended on shifting cultivation to grow rice and other food crops. Once the lands were depleted of nutrients, they burnt the residues of the last crop to provide nutrients to the soil while they cleared new areas for farming. However, the extent of clearing new areas was limited as the communities returned to the old cleared areas when it had been rehabilitated.
This shifting agriculture, especially with the burning of spent fields, has been discouraged by the state government as Sarawak state looks to reduce Malaysia’s carbon emissions and establish land rights among the many indigenous tribes, some of which were nomadic. DOPPA
ECB says 16 euro zone banks fall short of climate demands, may face penalties
FRANKFURT (Reuters) - Sixteen euro zone banks are still failing to disclose enough information about their exposure to climate risk and may face fines or even higher capital requirements from the European Central Bank, the ECB said on Friday.
European regulators have been putting pressure on banks to factor in risks relating to climate change, from floods and droughts to a transition to new energy sources, in the way they do business.
The ECB said 16 banks, or 15% of those it assessed, were still falling short of the reporting standards, which include identifying any material exposure to climate risk, describing its impact on the bank's business and spelling out how it would deal with it. It did not disclose the banks' identities.
While this was an improvement from a year ago, when 45% of banks were coming up short, the ECB said lenders needed to make "further improvements" to meet the requirements, which come into effect in June, or face consequences.
"Further improvements are urgently needed," Frank Elderson, vice-chair of the ECB's Supervisory Board, said. "We will take the appropriate supervisory actions to ensure that banks comply." Marketscreener/ REUTERS
----------
Indonesia, Malaysia palm waste exports raises questions
ndonesian and Malaysian exports of palm oil wastes used as biofuels feedstocks rose sharply during January-February compared with previous years, particularly to China, raising market participants' concerns about alleged fraudulent practices.
Indonesian palm oil waste exports to China under HS codes starting 2306 and 3823 more than trebled from a year earlier to 730,000t during January-February, up from 225,000t during the same months in 2022. Shipments to other destinations remained more stable, pushing total exports up by 30pc to 2.19mn t.
Exports to China under 2306, which include palm oil mill effluent (Pome) and palm acid oil (PAO), rose by almost fivefold from a year earlier to 382,000t during January-February 2023. While China-bound exports under code 3823, including PAO and palm fatty acid distillate (Pfad), rose by 142pc to 348,000t.
Total Malaysian exports under 3823, which is used for Pome, PAO and Pfad from that country, rose by 13pc to 413,000t during January-February. Sharp year-on-year rises to China, the Netherlands and Singapore drove the increase, rising by 46pc, 48pc and 122pc to 81,000t, 75,000t and 52,000t respectively.
The rate of growth in these flows is of concern to market participants, as supply of these wastes is limited by palm oil production volumes that have remained relatively stagnant over the same period. Indonesian crude palm oil (CPO) output was flat from a year earlier at around 3.9mn t in January, the last month for which data is available from the country's palm oil association. Malaysian output rose by 3pc to 3.8mn t for January-March, according to the Malaysia Palm Oil Board.
Total potential output of Pome oil, defined by International Sustainability and Carbon Certification (ISCC) as the oil fraction from unavoidable wastewater produced at a palm oil mill, varies depending on technology but should be between 1-2pc of CPO production volume. PAO is defined by the Palm Oil Refiners Association of Malaysia as a by-product from chemical alkali CPO refining. Output should be negligible with most refining capacity in Malaysia and Indonesia using physical not chemical processes.
Recent export volumes under 2306 and 3823 seem more than what can reasonably be available because of these limitations, market participants said.
Paper trail concerns Argus Media---------
OPINION-Southeast Asia companies must recognize climate change risks
Timely corporate action will yield tremendous growth opportunities
Southeast Asia is fast emerging as one of the most competitive engines of global economic activity, as reflected in average gross domestic product growth of 5% over the last decade.
This growth, though, has not come without costs, including accelerated urbanization and rising energy demand, and has led to a surge in greenhouse gas emissions.
Southeast Asia was responsible for about 6.5% of global energy-related carbon dioxide emissions in 2020, a steep increase from 2.8% in 1990. Such unchecked growth in emissions raises the risk of raising global temperatures by 3.2 C. That in turn could cause the region's GDP to fall by up to 37%, according to estimates by the Swiss Re Institute.
Beyond the economic cost, such a rise in heat would have far-reaching social and health implications and have a long-term impact on livelihoods. Indeed, almost 12% of Southeast Asia's population is now at risk of displacement as a result of rising sea levels.
Solving the climate challenge poses a particularly complex problem for Southeast Asia, home to more than 600 ethnic groups and over 1,000 languages and dialects. Given the diversity and nuances of the region, delivering a just energy transition that balances security, affordability and sustainability will be vital to address both mitigation and adaptation through fair and inclusive action and to ensure that no community is left behind.
There is no single solution to address the complex challenges faced by corporations in this complex region. However, Southeast Asia is uniquely positioned to drive tangible change through climate action.
If corporations seize this opportunity, they can play a critical role in tackling overarching climate risks. Not only will they be able to accelerate change, but they also stand to reap enormous benefits from making lasting corporate climate action.
A new World Economic Forum white paper created with Boston Consulting Group and SAP, "Accelerating Asia's advantage: a guide to corporate climate action," explores this critical imperative for change. Nikkei Asia
----------
Dayak Oil Palm Planters Association (DOPPA) Launches New Website and Promptly Challenges EUDR
Welcome to Sarawak Dayak Oil Palm Planters Association (DOPPA) website, it is my pleasure to pen down some of DOPPA’s struggles in protecting the interest of the Indigenous Dayak Smallholders in Sarawak, Malaysia. Based on Malaysian Palm Oil Certification Council (MPOCC) data end of the year 2022, more than 40,500 independent smallholders are covering an area of more than 234,812 hectares of land in Sarawak planted with oil palm. The smallholders in Sarawak represent 27% of the state’s total agriculture area.
For a long, the indigenous farmers whose main livelihood is farming have been ignored in every discussion of their role in aspects related to climate change amongst other major issues. Therefore, it was inspiring for the indigenous Dayak communities to hear the calls for the inclusion of indigenous peoples to fight climate change at COP15 in Montreal, Canada. The traditional Dayak culture and livelihoods are a perfect example of a sustainable society where we live within the means of what nature provides. It has therefore saddened and angered the Dayak communities to see an ongoing campaign by the European Union (EU) to exclude the Indigenous Dayak smallholders from the entire palm oil supply chain irrespective of the fact that they have already been fully involved in cultivation and on most of the same land for generations but under shifting agriculture oil palm, to improve our livelihoods.
Our ancestors depended on shifting cultivation to grow rice and other food crops. Once the lands were depleted of nutrients, they burnt the residues of the last crop to provide nutrients to the soil while they cleared new areas for farming. However, the extent of clearing new areas was limited as the communities returned to the old cleared areas when it had been rehabilitated.
This shifting agriculture, especially with the burning of spent fields, has been discouraged by the state government as Sarawak state looks to reduce Malaysia’s carbon emissions and establish land rights among the many indigenous tribes, some of which were nomadic. DOPPA
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April 20, 2023
Malaysia slams 'unjust' EU deforestation law for blocking palm oil
KUALA LUMPUR, April 20 (Reuters) - Malaysia on Thursday said it was disappointed over a European Union law banning imports of commodities linked to deforestation, fearing a hit to its exports of palm oil to the bloc.
On Wednesday, the European Parliament approved a landmark law that will require companies that sell goods into the European Union to produce "verifiable" information proving their goods were not grown on land deforested after 2020, or risk hefty fines.
The law will apply to soy, beef, palm oil, wood, cocoa, coffee, rubber, charcoal, and derived products including leather, chocolate and furniture.
Malaysia said the law was a "deliberate effort" to increase costs and barriers for its palm oil sector -- a key source of export revenue for the Southeast Asian country.
Malaysia is the world's second biggest exporter of the oil, used in everything from lipstick to pizza, after Indonesia. Reuters
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EU Parliament votes for deforestation regulation
The European Parliament today approved a deforestation regulation that requires mandatory due diligence from operators and traders selling and importing cattle, cocoa, coffee, oil palm, soya, rubber and wood into the EU.
Also covered are derivative products that contain, have been fed with or made using cattle, cocoa, coffee, oil palm, soya, rubber and wood — such as leather, chocolate and furniture as well as charcoal, printed paper products and certain palm oil derivatives.
Firms must ensure products sold in the EU have not caused deforestation or forest degradation. The law sets penalties for non-compliance with a maximum fine of at least 4pc of the total annual EU turnover of the non-compliant operator or trader.
During the negotiations, the parliament said it successfully widened definition of forest degradation to include conversion of primary forests or naturally regenerating forests into plantation forests or other wooded land.
But Finnish green member of parliament (MEP) Heidi Hautala is still "looking forward" to upcoming reviews to include several elements in the parliament's position that were not reflected in the final legal text, notably enlarged scope beyond forests to other ecosystems and to financial institutions. "We also wanted more ambitious provisions on human rights," Hautala said.
"The new law is not only key in our fight against climate change and biodiversity loss, but should also break the deadlock preventing us from deepening trade relations with countries that share our environmental values and ambitions," centre-right EPP MEP Christophe Hansen said. Luxembourg lawmaker Hansen was the parliament's chief negotiator.
"This [deforestation regulation] can foster our trade relations with other economies as well as with Mercosur," Hansen told Argus, albeit noting resistance to trade agreements with partners that are "massively burning down forests to produce agricultural goods". Argus Media
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EUROPEAN UNION PARLIAMENT TURNS BACK ON ASEAN PARTNERS WITH APPROVAL OF EUROPEAN UNION DEFORESTATION REGULATION (EUDR)
1. On 19 April 2023, the EU Parliament voted to approve the negotiated deal on the EU’s Deforestation Regulation (EUDR).
2. The Regulation is a deliberate effort to increase costs and barriers for Malaysia’s palm oil sector, including more than 450,000 smallholders. This ultimately would increase poverty, reduce household incomes and harm our rural communities – outcomes that stand in stark contrast to the EU’s commitments outlined in the UN Sustainable Development Goals.
3. The EUDR is unjust and serves primarily to protect a domestic oilseeds market that is inefficient and cannot compete with Malaysia’s efficient and productive palm oil exports.
4. The Government of Malaysia restates its core position:
i. A Small Farmer exemption is needed: The EU should commit to a genuine exemption for smallholders in the EUDR. This would prevent large European importers from cutting smallholders out of supply chains – an entirely avoidable consequence should small farmers be given proper consideration.
ii. No ‘High Risk’ classification: The EU should commit to not classifying Malaysia as a ‘high risk’ country nor pursuing a jurisdictional approach. The designation of Malaysia as high risk is unjustified. Malaysia has made, and kept, world leading commitments to forest conservation and sustainable agriculture that have been recognised by leading global institutions such as the UN FAO and the World Bank.
iii. Recognize Malaysian Standards: The EU should acknowledge the benefits of the Malaysian Sustainable Palm Oil (MSPO) standard – a mandatory sustainability certification - and recognize it as a path to compliance with the EUDR.
5. Malaysia remains open to engagement with the European Union to address these concerns. The EU must now commit to genuine involvement for both governments and industries from producing countries, including as part of the ongoing Deforestation Platform.
6. Malaysian palm oil is sustainable and one of the most-certified vegetable oils in the world today. The MSPO standard already guarantees Malaysia’s commitment to comprehensive sustainability standards and has helped reduce deforestation from palm oil to effectively zero. Malaysia will continue to provide sustainable and deforestation-free
palm oil to our global customers.
7. It is disappointing to witness the European Union withdrawing from the global marketplace and erecting protectionist barriers. This move is woefully misguided, especially as the ASEAN and CPTPP groupings are gaining in influence and attracting new partners from around the world.
8. The Malaysian Government, working alongside our partners in Indonesia, is considering an appropriate response to this Regulation, given the importance of the palm oil sector and the clear intent to impose an unjustified trade barrier.
9. The Malaysian Government urges the EU to address the concerns of Malaysia and the entire palm oil sector effectively and expeditiously.
YAB DATO’ SRI HAJI FADILLAH BIN HAJI YUSOF
DEPUTY PRIME MINISTER
AND MINISTER OF PLANTATION AND COMMODITIES
20 APRIL 2023
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Malaysia-China MoU boosts palm oil trade
MALAYSIA's cooperation with China in the palm oil sector has reached another milestone with the recent signing of a memorandum of understanding (MoU) between the two countries.
The MoU, which was inked between the Malaysian Palm Oil Board (MPOB) and the China Chamber of Commerce of Import and Export of Foodstuffs, Native Produce, and Animal By-products (CFNA), further broadens cooperation between the two countries in the trade of palm oil apart from strengthening Malaysia's position and market share in the Chinese market.
China was Malaysia's second largest palm oil export market last year, accounting for 11.2 per cent of total Malaysian palm oil exports.
In 2022, Malaysia's total export value of palm oil and other palm-based products to China rose 12.9 per cent to RM14.86 billion from RM13.16 billion in 2021.
The cooperation allows China to participate in the technological exploration in oil palm mechanisation in Malaysia, which will increase productivity and cut reliance on human labour.
Both countries can jointly promote the exploration, designing and implementation of new technologies, such as artificial intelligence (AI), fifth-generation mobile network, Internet of Things and autonomous vehicles in local oil palm plantations.
These include aerospace, drone and AI technologies from China Great Wall Industry Corp particularly on the mapping of age profiles and detections of disease in the oil palm plantations, as well as autonomous harvesting vehicle developed by Shanghai Westwell Information Technology Co Ltd.
As such, it enhances China's confidence in Malaysian palm oil and secures the supply of the commodity for the country. New Straits Times
Malaysia slams 'unjust' EU deforestation law for blocking palm oil
KUALA LUMPUR, April 20 (Reuters) - Malaysia on Thursday said it was disappointed over a European Union law banning imports of commodities linked to deforestation, fearing a hit to its exports of palm oil to the bloc.
On Wednesday, the European Parliament approved a landmark law that will require companies that sell goods into the European Union to produce "verifiable" information proving their goods were not grown on land deforested after 2020, or risk hefty fines.
The law will apply to soy, beef, palm oil, wood, cocoa, coffee, rubber, charcoal, and derived products including leather, chocolate and furniture.
Malaysia said the law was a "deliberate effort" to increase costs and barriers for its palm oil sector -- a key source of export revenue for the Southeast Asian country.
Malaysia is the world's second biggest exporter of the oil, used in everything from lipstick to pizza, after Indonesia. Reuters
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EU Parliament votes for deforestation regulation
The European Parliament today approved a deforestation regulation that requires mandatory due diligence from operators and traders selling and importing cattle, cocoa, coffee, oil palm, soya, rubber and wood into the EU.
Also covered are derivative products that contain, have been fed with or made using cattle, cocoa, coffee, oil palm, soya, rubber and wood — such as leather, chocolate and furniture as well as charcoal, printed paper products and certain palm oil derivatives.
Firms must ensure products sold in the EU have not caused deforestation or forest degradation. The law sets penalties for non-compliance with a maximum fine of at least 4pc of the total annual EU turnover of the non-compliant operator or trader.
During the negotiations, the parliament said it successfully widened definition of forest degradation to include conversion of primary forests or naturally regenerating forests into plantation forests or other wooded land.
But Finnish green member of parliament (MEP) Heidi Hautala is still "looking forward" to upcoming reviews to include several elements in the parliament's position that were not reflected in the final legal text, notably enlarged scope beyond forests to other ecosystems and to financial institutions. "We also wanted more ambitious provisions on human rights," Hautala said.
"The new law is not only key in our fight against climate change and biodiversity loss, but should also break the deadlock preventing us from deepening trade relations with countries that share our environmental values and ambitions," centre-right EPP MEP Christophe Hansen said. Luxembourg lawmaker Hansen was the parliament's chief negotiator.
"This [deforestation regulation] can foster our trade relations with other economies as well as with Mercosur," Hansen told Argus, albeit noting resistance to trade agreements with partners that are "massively burning down forests to produce agricultural goods". Argus Media
---------
EUROPEAN UNION PARLIAMENT TURNS BACK ON ASEAN PARTNERS WITH APPROVAL OF EUROPEAN UNION DEFORESTATION REGULATION (EUDR)
1. On 19 April 2023, the EU Parliament voted to approve the negotiated deal on the EU’s Deforestation Regulation (EUDR).
2. The Regulation is a deliberate effort to increase costs and barriers for Malaysia’s palm oil sector, including more than 450,000 smallholders. This ultimately would increase poverty, reduce household incomes and harm our rural communities – outcomes that stand in stark contrast to the EU’s commitments outlined in the UN Sustainable Development Goals.
3. The EUDR is unjust and serves primarily to protect a domestic oilseeds market that is inefficient and cannot compete with Malaysia’s efficient and productive palm oil exports.
4. The Government of Malaysia restates its core position:
i. A Small Farmer exemption is needed: The EU should commit to a genuine exemption for smallholders in the EUDR. This would prevent large European importers from cutting smallholders out of supply chains – an entirely avoidable consequence should small farmers be given proper consideration.
ii. No ‘High Risk’ classification: The EU should commit to not classifying Malaysia as a ‘high risk’ country nor pursuing a jurisdictional approach. The designation of Malaysia as high risk is unjustified. Malaysia has made, and kept, world leading commitments to forest conservation and sustainable agriculture that have been recognised by leading global institutions such as the UN FAO and the World Bank.
iii. Recognize Malaysian Standards: The EU should acknowledge the benefits of the Malaysian Sustainable Palm Oil (MSPO) standard – a mandatory sustainability certification - and recognize it as a path to compliance with the EUDR.
5. Malaysia remains open to engagement with the European Union to address these concerns. The EU must now commit to genuine involvement for both governments and industries from producing countries, including as part of the ongoing Deforestation Platform.
6. Malaysian palm oil is sustainable and one of the most-certified vegetable oils in the world today. The MSPO standard already guarantees Malaysia’s commitment to comprehensive sustainability standards and has helped reduce deforestation from palm oil to effectively zero. Malaysia will continue to provide sustainable and deforestation-free
palm oil to our global customers.
7. It is disappointing to witness the European Union withdrawing from the global marketplace and erecting protectionist barriers. This move is woefully misguided, especially as the ASEAN and CPTPP groupings are gaining in influence and attracting new partners from around the world.
8. The Malaysian Government, working alongside our partners in Indonesia, is considering an appropriate response to this Regulation, given the importance of the palm oil sector and the clear intent to impose an unjustified trade barrier.
9. The Malaysian Government urges the EU to address the concerns of Malaysia and the entire palm oil sector effectively and expeditiously.
YAB DATO’ SRI HAJI FADILLAH BIN HAJI YUSOF
DEPUTY PRIME MINISTER
AND MINISTER OF PLANTATION AND COMMODITIES
20 APRIL 2023
---------
Malaysia-China MoU boosts palm oil trade
MALAYSIA's cooperation with China in the palm oil sector has reached another milestone with the recent signing of a memorandum of understanding (MoU) between the two countries.
The MoU, which was inked between the Malaysian Palm Oil Board (MPOB) and the China Chamber of Commerce of Import and Export of Foodstuffs, Native Produce, and Animal By-products (CFNA), further broadens cooperation between the two countries in the trade of palm oil apart from strengthening Malaysia's position and market share in the Chinese market.
China was Malaysia's second largest palm oil export market last year, accounting for 11.2 per cent of total Malaysian palm oil exports.
In 2022, Malaysia's total export value of palm oil and other palm-based products to China rose 12.9 per cent to RM14.86 billion from RM13.16 billion in 2021.
The cooperation allows China to participate in the technological exploration in oil palm mechanisation in Malaysia, which will increase productivity and cut reliance on human labour.
Both countries can jointly promote the exploration, designing and implementation of new technologies, such as artificial intelligence (AI), fifth-generation mobile network, Internet of Things and autonomous vehicles in local oil palm plantations.
These include aerospace, drone and AI technologies from China Great Wall Industry Corp particularly on the mapping of age profiles and detections of disease in the oil palm plantations, as well as autonomous harvesting vehicle developed by Shanghai Westwell Information Technology Co Ltd.
As such, it enhances China's confidence in Malaysian palm oil and secures the supply of the commodity for the country. New Straits Times
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April 19, 2023
EU Parliament adopts new law to fight global deforestation
While no country or commodity will be banned, companies will only be allowed to sell products in the EU if the supplier of the product has issued a so-called “due diligence” statement confirming that the product does not come from deforested land or has led to forest degradation, including of irreplaceable primary forests, after 31 December 2020.
As requested by Parliament, companies will also have to verify that these products comply with relevant legislation of the country of production, including on human rights, and that the rights of affected indigenous people have been respected.
Products covered
The products covered by the new legislation are: cattle, cocoa, coffee, palm-oil, soya and wood, including products that contain, have been fed with or have been made using these commodities (such as leather, chocolate and furniture), as in the original Commission proposal. During the negotiations, MEPs successfully added rubber, charcoal, printed paper products and a number of palm oil derivatives.
Parliament also secured a wider definition of forest degradation that includes the conversion of primary forests or naturally regenerating forests into plantation forests or into other wooded land.
Risk-based controls Europarl
----------
European Parliament green-lights historic anti-deforestation law
Brussels, April 19 - The European Parliament today formally endorsed a landmark anti-deforestation law, which puts the European Union on a pathway to reduce its consumption of forest-risk commodities.
The law will prevent the import and sale of products linked to deforestation and forest degradation, including coffee, timber, palm oil, cattle, soy, rubber and cocoa and their derived products.
It also commits the European Commission to assessing the need for a new law within the next two years that could oblige financial institutions to prevent the financing of deforestation, whether direct or indirect.
Giulia Bondi, senior EU forests campaigner at Global Witness, said “This landmark law is a much-needed a ray of hope for the world’s forests. However, it needs the final piece of the puzzle - the European Commission must now urgently deliver a new law that would stop banks from funding deforestation.” Global Witness
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EU: Major Step For ‘Deforestation-Free’ Trade
Companies Required to Respect Environment, Human Rights in Supply Chain
(Berlin) – The European Union is adopting an important new law to require EU-based companies to ensure that their imports and exports are “deforestation-free” and uphold human rights, Human Rights Watch said today. The law establishes the legal requirements for European businesses regarding biodiversity loss and human rights abuses embedded in their international supply chains.
On April 19, 2023, The European Parliament voted for the European Union Deforestation-Free Products Regulation (EUDR); the Council of the European Union is expected to also approve it in late April, ushering its entry into force shortly after.
“European agribusiness companies have made numerous voluntary commitments regarding their supply chains, but they have not eradicated deforestation and human rights abuses,” said Luciana Téllez Chávez, environment researcher at Human Rights Watch. “Binding regulations such as the EU Deforestation-Free Products Regulation are necessary to hold companies accountable for the environmental and human rights impacts of their global operations.”
The Deforestation-Free Products Regulation puts the onus on companies registered in EU member states to ensure that the wood, palm oil, soy, coffee, cocoa, rubber, and cattle they import or export have not been produced on land that was deforested after December 31, 2020. The law requires companies to trace the commodities back to the plot of land where they were produced, or, in the case of cattle, the particular locations where the animals were raised. Human Rights Watch
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COCERAL, FEDIOL, and FEFAC Call for Targeted Country Partnerships and Clear Guidelines for EU Deforestation-free Commodities Regulation Implementation
Brussels, 19 April 2023 – Following the formal approval of the Deforestation-free Commodities Regulation, COCERAL, FEDIOL, and FEFAC call on the European Commission and Member States to work with stakeholders to facilitate the implementation of the Regulation. Many implementation challenges remain unaddressed and will require multistakeholder collaboration, involving the European Commission, Member States, and producing country government and stakeholders. Furthermore, uncertainties around how the provisions translate in practice should be addressed as soon as possible to allow supply chain actors to prepare for implementation.
COCERAL, FEDIOL, and FEFAC have welcomed the EU initiative to tackle deforestation and supported an EU regulation introducing mandatory due diligence. As repeatedly highlighted throughout the regulatory process, some of the provisions and the set timeline for implementation will pose significant problems for numerous stakeholders in the supply chains and risk excluding many players in third countries from supplying the EU market, especially smallholder farmers.
The Regulation will apply to supply chain actors 18 months after entry into force, which is a short timeline considering the serious implementation challenges that need to be tackled. Challenges around the traceability to plot requirement, for instance, have not been properly acknowledged, and solutions must urgently be found at scale to enable compliance. Practical challenges include: FEDIOL
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Deforestation-free supply chains: The EU must create the conditions for implementation
Economy publishes position paper and urges dialogue with countries of origin.
Today the EU Parliament passed the regulation on deforestation-free products. Jaana Kleinschmit von Lengefeld, President of OVID, the Association of the Oilseed Processing Industry in Germany, explains: "We welcome the EU initiative and want to help ensure that the regulation passed today really brings measurable progress in protecting the forests". However, legal, technical, logistical and administrative hurdles are currently standing in the way of implementation. In the future, hundreds of thousands of geolocation data will have to be passed on with every shipload of soybeans or palm oil. Added to this is the expansion of the storage and transport infrastructure and extensive declarations of due diligence for all imports into the EU.
“Since time is of the essence, we expect immediate clarity and raw material-specific guidelines from the EU on how the new regulations are to be implemented in a legally secure manner. The transitional period of 18 months is far too short for this mammoth task. The problematic start of the German supply chain law, which is currently putting a considerable strain on the economy, should be a warning to the legislator," said Kleinschmit von Lengefeld.
The OVID President also demands that the EU and its member states quickly approach the countries of origin as well as producers and market participants. “We see politics as having an obligation to play an active role in meeting the enormous challenges in terms of logistics and administration. If this does not happen, the new regulations will significantly disrupt the flow of goods. Ultimately, consumers will also feel the strain on companies and supply chains. In view of such high risks, Berlin and Brussels must not simply duck away," said Kleinschmit von Lengefeld.
In order to gain clarity as to how this can be achieved in the short term, OVID has presented a joint position paper together with associations from the agricultural and food industry . In it, the signatories appeal to the Federal Government and the EU Commission to present guidelines specific to raw materials in a timely manner. "If this is not possible in the planned timetable, the transition period must be extended," says the paper from the ten associations. OVID Verband
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Indonesia-Jokowi shares concern over discriminatory EU rules with Czech PM
Bogor, W Java (ANTARA) - Indonesian President Joko Widodo (Jokowi) expressed his concern over several discriminatory regulations issued by the European Union (EU) while receiving a courtesy call from the Prime Minister (PM) of the Czech Republic, Petr Fiala.
"I also conveyed about several discriminatory EU regulations and the importance of pushing for the completion of the Indonesia-EU CEPA (Comprehensive Economic Partnership Agreement) negotiation," Jokowi informed at a joint press conference with PM Fiala at the Bogor Presidential Palace here on Tuesday.
The joint press conference took place after a bilateral meeting between the two countries.
He has made statements regarding the EU’s discriminatory regulations on several earlier occasions. While attending the 40th anniversary of the ASEAN-EU Partnership in Manila, the Philippines, in 2017, he asked the European Union to stop discriminating against palm oil products.
He said that the resolution of the European Union Parliament and the regulations of several European countries regarding palm oil and deforestation did not only hamper the economy of palm oil-producing countries, but also damaged the image of palm oil producers.
Meanwhile, the Indonesia-EU CEPA negotiation, which was launched on July 18, 2016, has entered its 13th round. It was held in Bali in February 2023 and focused on the discussion concerning patents, trademarks, industrial designs, and copyrights. Antara News
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Palm oil marks great day amid supply concerns
SINGAPORE: Malaysian palm oil futures ended more than 4 percent higher on Tuesday, the biggest daily gain since December, tracking strength in related edible oils amid threats to the Black Sea grain corridor deal, while a weaker Malaysian ringgit lent some support.
The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange snapped four days of losses, climbing 149 ringgit, or 4.1%, to 3,787 ringgit ($854.47) a tonne.
The contract surged following a rise in global vegetable oil markets overnight, triggered by concerns that the Black Sea Grain corridor deal might not extend beyond May 18, said Anilkumar Bagani, research head of Mumbai-based vegetable oils broker Sunvin Group.
“The destination demand is still fragile for palm oil due to its tight spread over the competition and even the core palm oil demand is cautious due to high volatility in prices,” Bagani added. BRecorder
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MPOC optimistic to grow Palm Oil market share in India, EU, central Asia and Middle East
KUALA LUMPUR: The Malaysian Palm Oil Council (MPOC) is optimistic that Malaysia can maintain and even grow its palm oil market share in India, Europe, Central Asia and the Middle East.
In its First Digital Market Forum webinar entitled 'Navigating Market Opportunities and Challenges in 2023' today (Apr 19), the council shared updates on the development and opportunities in some of Malaysia's key markets with its stakeholders.
MPOC India regional manager, Bhavna Shah, said India remains an important market for palm oil as 60 per cent of its domestic edible oil consumption depended on imports.
She said that out of 15.12 million tonnes of imported edible oils last year, 62 per cent was palm oil.
"However, the average consumption per person is about 17.5 kilogrammes (kg) compared to the world's average consumption of over 30 kg. Therefore, there is still a huge gap, which indicates a much bigger potential," she said.
Bhavna said India's food consumption growth would bode well for palm oil driven by its growing Fast-Moving Consumer Goods (FMCG) industry, booming new start-ups and rising popularity of big weddings with spending amounting to US$15.5 billion (RM69 billion) this year. New Straits Times
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Palm oil's rare premium leads to 'wash out' in India -dealers
MUMBAI, April 19 (Reuters) - Indian buyers have opted to cancel 75,000 tonnes of palm oil purchases for the first time in many years and switch to rival soft oils, such as sunflower oil and soyoil, five industry officials told Reuters.
Palm oil usually trades at a discount to soft oils, but import restrictions by top producer Indonesia have helped to push palm oil to a premium, making sun oil and soyoil more attractive to buyers. Reuters
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PT Astra Agro Lestari Tbk : Indonesia's Palm Oil Export to China, Bangladesh on Rise
Jakarta. Indonesia's palm oil export to China and Bangladesh saw a huge jump this February, according to the industry association.
The Indonesian Palm Oil Association (Gapki) recently revealed that the country's palm oil export to China witnessed a 55-percent increase from 522,900 tons in January to 809,500 tons a month later. Indonesia shipped 154,000 tons of palm oil to Bangladesh in February. This marked an estimated 289 percent jump from just 39,600 tons at the beginning of the year.
The figures made China and Bangladesh the top two export destinations for Indonesian palm oil that booked the highest increase volume-wise in February.
"We are also seeing an increase in palm oil exports to the Netherlands," the newly elected Gapki chairman Eddy Martono told reporters in Jakarta on Friday evening.
Data shows Indonesia exported 154,500 tons of palm oil to the Netherlands in February, up from 152,900 tons the previous month. However, exports to the US fell from 207,400 tons at the start of the year to 127,700 tons in February. Market Screener
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EU Parliament adopts new law to fight global deforestation
- An area larger than the EU was lost to deforestation between 1990 and 2020, with EU consumption causing around 10% of losses
- Cattle, cocoa, coffee, palm-oil, soya, wood, rubber, charcoal and printed paper products are covered by the new rules
- Human rights and the rights of indigenous people added as additional requirements
While no country or commodity will be banned, companies will only be allowed to sell products in the EU if the supplier of the product has issued a so-called “due diligence” statement confirming that the product does not come from deforested land or has led to forest degradation, including of irreplaceable primary forests, after 31 December 2020.
As requested by Parliament, companies will also have to verify that these products comply with relevant legislation of the country of production, including on human rights, and that the rights of affected indigenous people have been respected.
Products covered
The products covered by the new legislation are: cattle, cocoa, coffee, palm-oil, soya and wood, including products that contain, have been fed with or have been made using these commodities (such as leather, chocolate and furniture), as in the original Commission proposal. During the negotiations, MEPs successfully added rubber, charcoal, printed paper products and a number of palm oil derivatives.
Parliament also secured a wider definition of forest degradation that includes the conversion of primary forests or naturally regenerating forests into plantation forests or into other wooded land.
Risk-based controls Europarl
----------
European Parliament green-lights historic anti-deforestation law
Brussels, April 19 - The European Parliament today formally endorsed a landmark anti-deforestation law, which puts the European Union on a pathway to reduce its consumption of forest-risk commodities.
The law will prevent the import and sale of products linked to deforestation and forest degradation, including coffee, timber, palm oil, cattle, soy, rubber and cocoa and their derived products.
It also commits the European Commission to assessing the need for a new law within the next two years that could oblige financial institutions to prevent the financing of deforestation, whether direct or indirect.
Giulia Bondi, senior EU forests campaigner at Global Witness, said “This landmark law is a much-needed a ray of hope for the world’s forests. However, it needs the final piece of the puzzle - the European Commission must now urgently deliver a new law that would stop banks from funding deforestation.” Global Witness
----------
EU: Major Step For ‘Deforestation-Free’ Trade
Companies Required to Respect Environment, Human Rights in Supply Chain
(Berlin) – The European Union is adopting an important new law to require EU-based companies to ensure that their imports and exports are “deforestation-free” and uphold human rights, Human Rights Watch said today. The law establishes the legal requirements for European businesses regarding biodiversity loss and human rights abuses embedded in their international supply chains.
On April 19, 2023, The European Parliament voted for the European Union Deforestation-Free Products Regulation (EUDR); the Council of the European Union is expected to also approve it in late April, ushering its entry into force shortly after.
“European agribusiness companies have made numerous voluntary commitments regarding their supply chains, but they have not eradicated deforestation and human rights abuses,” said Luciana Téllez Chávez, environment researcher at Human Rights Watch. “Binding regulations such as the EU Deforestation-Free Products Regulation are necessary to hold companies accountable for the environmental and human rights impacts of their global operations.”
The Deforestation-Free Products Regulation puts the onus on companies registered in EU member states to ensure that the wood, palm oil, soy, coffee, cocoa, rubber, and cattle they import or export have not been produced on land that was deforested after December 31, 2020. The law requires companies to trace the commodities back to the plot of land where they were produced, or, in the case of cattle, the particular locations where the animals were raised. Human Rights Watch
-----------
COCERAL, FEDIOL, and FEFAC Call for Targeted Country Partnerships and Clear Guidelines for EU Deforestation-free Commodities Regulation Implementation
Brussels, 19 April 2023 – Following the formal approval of the Deforestation-free Commodities Regulation, COCERAL, FEDIOL, and FEFAC call on the European Commission and Member States to work with stakeholders to facilitate the implementation of the Regulation. Many implementation challenges remain unaddressed and will require multistakeholder collaboration, involving the European Commission, Member States, and producing country government and stakeholders. Furthermore, uncertainties around how the provisions translate in practice should be addressed as soon as possible to allow supply chain actors to prepare for implementation.
COCERAL, FEDIOL, and FEFAC have welcomed the EU initiative to tackle deforestation and supported an EU regulation introducing mandatory due diligence. As repeatedly highlighted throughout the regulatory process, some of the provisions and the set timeline for implementation will pose significant problems for numerous stakeholders in the supply chains and risk excluding many players in third countries from supplying the EU market, especially smallholder farmers.
The Regulation will apply to supply chain actors 18 months after entry into force, which is a short timeline considering the serious implementation challenges that need to be tackled. Challenges around the traceability to plot requirement, for instance, have not been properly acknowledged, and solutions must urgently be found at scale to enable compliance. Practical challenges include: FEDIOL
---------
Deforestation-free supply chains: The EU must create the conditions for implementation
Economy publishes position paper and urges dialogue with countries of origin.
Today the EU Parliament passed the regulation on deforestation-free products. Jaana Kleinschmit von Lengefeld, President of OVID, the Association of the Oilseed Processing Industry in Germany, explains: "We welcome the EU initiative and want to help ensure that the regulation passed today really brings measurable progress in protecting the forests". However, legal, technical, logistical and administrative hurdles are currently standing in the way of implementation. In the future, hundreds of thousands of geolocation data will have to be passed on with every shipload of soybeans or palm oil. Added to this is the expansion of the storage and transport infrastructure and extensive declarations of due diligence for all imports into the EU.
“Since time is of the essence, we expect immediate clarity and raw material-specific guidelines from the EU on how the new regulations are to be implemented in a legally secure manner. The transitional period of 18 months is far too short for this mammoth task. The problematic start of the German supply chain law, which is currently putting a considerable strain on the economy, should be a warning to the legislator," said Kleinschmit von Lengefeld.
The OVID President also demands that the EU and its member states quickly approach the countries of origin as well as producers and market participants. “We see politics as having an obligation to play an active role in meeting the enormous challenges in terms of logistics and administration. If this does not happen, the new regulations will significantly disrupt the flow of goods. Ultimately, consumers will also feel the strain on companies and supply chains. In view of such high risks, Berlin and Brussels must not simply duck away," said Kleinschmit von Lengefeld.
In order to gain clarity as to how this can be achieved in the short term, OVID has presented a joint position paper together with associations from the agricultural and food industry . In it, the signatories appeal to the Federal Government and the EU Commission to present guidelines specific to raw materials in a timely manner. "If this is not possible in the planned timetable, the transition period must be extended," says the paper from the ten associations. OVID Verband
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Indonesia-Jokowi shares concern over discriminatory EU rules with Czech PM
Bogor, W Java (ANTARA) - Indonesian President Joko Widodo (Jokowi) expressed his concern over several discriminatory regulations issued by the European Union (EU) while receiving a courtesy call from the Prime Minister (PM) of the Czech Republic, Petr Fiala.
"I also conveyed about several discriminatory EU regulations and the importance of pushing for the completion of the Indonesia-EU CEPA (Comprehensive Economic Partnership Agreement) negotiation," Jokowi informed at a joint press conference with PM Fiala at the Bogor Presidential Palace here on Tuesday.
The joint press conference took place after a bilateral meeting between the two countries.
He has made statements regarding the EU’s discriminatory regulations on several earlier occasions. While attending the 40th anniversary of the ASEAN-EU Partnership in Manila, the Philippines, in 2017, he asked the European Union to stop discriminating against palm oil products.
He said that the resolution of the European Union Parliament and the regulations of several European countries regarding palm oil and deforestation did not only hamper the economy of palm oil-producing countries, but also damaged the image of palm oil producers.
Meanwhile, the Indonesia-EU CEPA negotiation, which was launched on July 18, 2016, has entered its 13th round. It was held in Bali in February 2023 and focused on the discussion concerning patents, trademarks, industrial designs, and copyrights. Antara News
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Palm oil marks great day amid supply concerns
SINGAPORE: Malaysian palm oil futures ended more than 4 percent higher on Tuesday, the biggest daily gain since December, tracking strength in related edible oils amid threats to the Black Sea grain corridor deal, while a weaker Malaysian ringgit lent some support.
The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange snapped four days of losses, climbing 149 ringgit, or 4.1%, to 3,787 ringgit ($854.47) a tonne.
The contract surged following a rise in global vegetable oil markets overnight, triggered by concerns that the Black Sea Grain corridor deal might not extend beyond May 18, said Anilkumar Bagani, research head of Mumbai-based vegetable oils broker Sunvin Group.
“The destination demand is still fragile for palm oil due to its tight spread over the competition and even the core palm oil demand is cautious due to high volatility in prices,” Bagani added. BRecorder
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MPOC optimistic to grow Palm Oil market share in India, EU, central Asia and Middle East
KUALA LUMPUR: The Malaysian Palm Oil Council (MPOC) is optimistic that Malaysia can maintain and even grow its palm oil market share in India, Europe, Central Asia and the Middle East.
In its First Digital Market Forum webinar entitled 'Navigating Market Opportunities and Challenges in 2023' today (Apr 19), the council shared updates on the development and opportunities in some of Malaysia's key markets with its stakeholders.
MPOC India regional manager, Bhavna Shah, said India remains an important market for palm oil as 60 per cent of its domestic edible oil consumption depended on imports.
She said that out of 15.12 million tonnes of imported edible oils last year, 62 per cent was palm oil.
"However, the average consumption per person is about 17.5 kilogrammes (kg) compared to the world's average consumption of over 30 kg. Therefore, there is still a huge gap, which indicates a much bigger potential," she said.
Bhavna said India's food consumption growth would bode well for palm oil driven by its growing Fast-Moving Consumer Goods (FMCG) industry, booming new start-ups and rising popularity of big weddings with spending amounting to US$15.5 billion (RM69 billion) this year. New Straits Times
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Palm oil's rare premium leads to 'wash out' in India -dealers
MUMBAI, April 19 (Reuters) - Indian buyers have opted to cancel 75,000 tonnes of palm oil purchases for the first time in many years and switch to rival soft oils, such as sunflower oil and soyoil, five industry officials told Reuters.
Palm oil usually trades at a discount to soft oils, but import restrictions by top producer Indonesia have helped to push palm oil to a premium, making sun oil and soyoil more attractive to buyers. Reuters
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PT Astra Agro Lestari Tbk : Indonesia's Palm Oil Export to China, Bangladesh on Rise
Jakarta. Indonesia's palm oil export to China and Bangladesh saw a huge jump this February, according to the industry association.
The Indonesian Palm Oil Association (Gapki) recently revealed that the country's palm oil export to China witnessed a 55-percent increase from 522,900 tons in January to 809,500 tons a month later. Indonesia shipped 154,000 tons of palm oil to Bangladesh in February. This marked an estimated 289 percent jump from just 39,600 tons at the beginning of the year.
The figures made China and Bangladesh the top two export destinations for Indonesian palm oil that booked the highest increase volume-wise in February.
"We are also seeing an increase in palm oil exports to the Netherlands," the newly elected Gapki chairman Eddy Martono told reporters in Jakarta on Friday evening.
Data shows Indonesia exported 154,500 tons of palm oil to the Netherlands in February, up from 152,900 tons the previous month. However, exports to the US fell from 207,400 tons at the start of the year to 127,700 tons in February. Market Screener
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April 18, 2023
Indonesia sets up task force to improve governance in its palm oil sector
JAKARTA, April 17 (Reuters) - Indonesia has formed a new task force to improve governance in the palm oil plantation sector, aiming to ensure companies comply with rules including on tax payments, its deputy finance minister said on Monday.
Indonesia is the world's biggest producer and exporter of palm oil.
The formation of the task force followed an industry-wide audit that officials launched last year after a cooking oil supply scarcity at home led to exports of some palm oil products being stopped for three weeks, shocking the global vegetable oil market.
Deputy Finance Minister Suahasil Nazara, who has been assigned to head the task force, said authorities intended to "improve our palm oil industry's compliance on various rules, regarding land permits ... and also on payments to the state". Nasdaq/ Reuters
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Germany offers help to finalize IEU-CEPA: Minister
Hannover, Germany (ANTARA) - Coordinating Minister for Economic Affairs Airlangga Hartarto affirmed that Germany offered help to facilitate the finalization of the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA).
"We are conducting a pragmatic approach between the two countries, and I believe that Germany shares the same view with us. Therefore, Germany wants to facilitate Indonesia in the hopes of ramping up the process of IEU-CEPA negotiations," the minister stated in Hannover, Germany, Sunday (April 16) evening local time.
The statement was conveyed after Hartarto attended a bilateral meeting with Germany ahead of the inauguration of the world's largest technology exhibition Hannover Messe, in which Indonesia will be an official partner country.
According to Hartarto, Germany is encouraging Indonesia to apply a more pragmatic approach that will also necessitate taking into account the Indonesian farmers' interest.
"Germany should also do the same. They should take into account our cocoa, coffee, and palm oil farmers, just as we should do the same with regard to farmers in European countries," he remarked.
Hartarto revealed that several policies of the Indonesian Government pose one of the obstacles in reaching the final agreement in IEU-CEPA. Antara News
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German Chancellor, Olaf Scholz says Germany and Indonesia share same values
German Chancellor Olaf Scholz on Monday said he was looking to deepen the economic relationship with Indonesia.
The German premier was speaking at the Hannover Messe international trade fair and was joined by Indonesian President Joko Widodo for the opening tour.
"Indonesia and Germany are close partners and have the same values," Scholz said.
A key partnership with Germany
Germany was "already Indonesia's key trading partner in Europe," according to the German chancellor.
"I'm sure this trade fair will help us expand our economic relationships even further," Scholz said. DW
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Apical’s sustainable aviation fuels entry takes flight with Cepsa to build largest 2G biofuels plant in Southern Europe
Apical, through its renewable energy subsidiary Bio-Oils located in Huelva, Spain, has established a joint venture with Cepsa to produce second generation (2G) biofuels by constructing the largest plant in southern Europe. The joint venture will entail an investment of up to €1 billion, one of the largest private investments in the history of the southern Spanish region of Andalusia.
The alliance marks Apical’s entry to the sustainable aviation fuels (SAF) market and a key milestone in RGE’s strategy to produce a range of fuels to decarbonise aviation, maritime and land transportation. Apical, a leading vegetable oil processor, is a member of the Singapore-headquartered RGE group of companies.
The new plant, which is scheduled to begin operation in H1 2026, can produce up to 500,000 tons of SAF and/or renewable diesel annually, enabling the reduction of CO2 emissions by up to 90 per cent, as compared to traditional fuels.
SAF is often viewed as a tool to a zero-emissions future. However, the key global challenge to the production of SAF is access to feedstock (renewable waste and residue raw materials). As a large global integrated processor of vegetable oils, Apical is able to efficiently and sustainably extract waste and residue from its supply chain and its processes in a transparent and traceable manner. (Paid News) Eco Business
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Aemetis Awarded $34 Million of Biodiesel Contracts by India Oil Refiners for Delivery in Q2 2023
CUPERTINO, CA , April 17, 2023 (GLOBE NEWSWIRE) -- via NewMediaWire – Aemetis, Inc. (NASDAQ: AMTX) announced today that its Universal Biofuels subsidiary in India, owner and operator of a biodiesel plant located near the Port of Kakinada on India’s east coast, was selected by the three government-controlled oil marketing companies (OMC’s) to supply approximately 8,500,000 gallons of biodiesel over the next three months. Revenues from the shipments are expected to be approximately $34 million of the $538 million of total tender offers issued by the OMC’s to fulfill biodiesel demand during the second quarter of 2023.
Approximately 70% of the 25 billion gallon diesel market in India is supplied by the OMC’s, with the remaining 30% supplied by large non-governmental oil refineries.
“We are pleased to see the Indian government’s commitment to the implementation of the 2022 National Biofuels Policy, and the OMC’s purchasing processes are resulting in significantly increased demand for biodiesel in India,” stated Sanjeev Gupta, Managing Director of the Universal Biofuels subsidiary of Aemetis. “The required product quality testing for the contracts has been completed and biodiesel deliveries have commenced for the contracted period of April, May and June.” Yahoo Finance
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UAE Mubadala Capital's Brazil unit to invest $2.5bn to produce renewable fuel
Abu Dhabi-based Mubadala Capital's energy company Acelen will invest more than 12 billion Brazilian real ($2.4 billion) over the next 10 years to produce 1 billion litres of renewable diesel and sustainable aviation kerosene to help accelerate the energy transition in Brazil.
Acelen, which owns the Mataripe Refinery in the Bahia province, plans to start production in the first quarter of 2026, the company said in a recent statement.
Initially, the fuels will be processed using soybean oil and other raw materials and will transition to using macaúba oil, a native Brazilian tree with high energy potential and palm oil.
This will position Acelen as one of largest renewable fuel producers globally. Initially, the fuel will be sold in international markets.
"We will produce sustainable fuel on a global scale, inserting Brazil in the development of the international sustainable chain," said Luiz de Mendonca, Acelen’s chief executive. "This will be Acelen’s first project in renewable fuels. So there is room for us to grow globally in this sector."
Acelen was set up Mubadala Capital, an asset management subsidiary of Mubadala Investment Company, a sovereign investor headquartered in Abu Dhabi. Zawya
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UK suggests restricting green jet fuel from waste cooking oil
Green jet fuel made from used cooking oil and animal fats should be restricted on environmental grounds, a recent British government consultation document has suggested, raising questions over whether the EU will follow suit.
The British Department for Transport document, which puts forward possible policy scenarios for the UK’s 2025 sustainable aviation fuel (SAF) law, warns that unless a cap is placed on green jet fuel produced from used cooking oil and animal fats, carbon emissions may rise in other transport sectors.
Fuels derived from used cooking oil and animal fats are commonly referred to as Hydroprocessed Esters and Fatty Acids, or HEFA.
“The purpose of a HEFA cap is to ensure that introducing a SAF mandate does not divert feedstock away from existing uses or raise concerns over sustainability by increasing demand for certain feedstocks,” the consultation document states. EURACTIV
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Environment groups sue EU over green label for gas, nuclear
BRUSSELS (AP) — Environmental groups have started legal action against the European Union’s executive branch in a bid to block a move to include natural gas and nuclear power generation on a list of sustainable activities.
The list proposed by the European Commission drew fierce criticism and accusations of greenwashing. On Tuesday, Greenpeace said that it was filing a lawsuit at the European Court of Justice, the top EU court, after the commission refused to reconsider its move.
Greenpeace is asking the European Court of Justice to declare the inclusion of fossil gas and nuclear “as invalid.”
Separately, ClientEarth, WWF’s European Policy Office, Transport & Environment (T&E), and BUND are challenging only the decision to include gas. They say the fossil fuel can’t be considered sustainable because of its adverse environmental impact.
The green labeling system from the European Commission defines what qualifies as an investment in sustainable energy. Initially, it didn’t initially include gas or nuclear. AP News
Indonesia sets up task force to improve governance in its palm oil sector
JAKARTA, April 17 (Reuters) - Indonesia has formed a new task force to improve governance in the palm oil plantation sector, aiming to ensure companies comply with rules including on tax payments, its deputy finance minister said on Monday.
Indonesia is the world's biggest producer and exporter of palm oil.
The formation of the task force followed an industry-wide audit that officials launched last year after a cooking oil supply scarcity at home led to exports of some palm oil products being stopped for three weeks, shocking the global vegetable oil market.
Deputy Finance Minister Suahasil Nazara, who has been assigned to head the task force, said authorities intended to "improve our palm oil industry's compliance on various rules, regarding land permits ... and also on payments to the state". Nasdaq/ Reuters
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Germany offers help to finalize IEU-CEPA: Minister
Hannover, Germany (ANTARA) - Coordinating Minister for Economic Affairs Airlangga Hartarto affirmed that Germany offered help to facilitate the finalization of the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA).
"We are conducting a pragmatic approach between the two countries, and I believe that Germany shares the same view with us. Therefore, Germany wants to facilitate Indonesia in the hopes of ramping up the process of IEU-CEPA negotiations," the minister stated in Hannover, Germany, Sunday (April 16) evening local time.
The statement was conveyed after Hartarto attended a bilateral meeting with Germany ahead of the inauguration of the world's largest technology exhibition Hannover Messe, in which Indonesia will be an official partner country.
According to Hartarto, Germany is encouraging Indonesia to apply a more pragmatic approach that will also necessitate taking into account the Indonesian farmers' interest.
"Germany should also do the same. They should take into account our cocoa, coffee, and palm oil farmers, just as we should do the same with regard to farmers in European countries," he remarked.
Hartarto revealed that several policies of the Indonesian Government pose one of the obstacles in reaching the final agreement in IEU-CEPA. Antara News
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German Chancellor, Olaf Scholz says Germany and Indonesia share same values
German Chancellor Olaf Scholz on Monday said he was looking to deepen the economic relationship with Indonesia.
The German premier was speaking at the Hannover Messe international trade fair and was joined by Indonesian President Joko Widodo for the opening tour.
"Indonesia and Germany are close partners and have the same values," Scholz said.
A key partnership with Germany
Germany was "already Indonesia's key trading partner in Europe," according to the German chancellor.
"I'm sure this trade fair will help us expand our economic relationships even further," Scholz said. DW
----------
Apical’s sustainable aviation fuels entry takes flight with Cepsa to build largest 2G biofuels plant in Southern Europe
Apical, through its renewable energy subsidiary Bio-Oils located in Huelva, Spain, has established a joint venture with Cepsa to produce second generation (2G) biofuels by constructing the largest plant in southern Europe. The joint venture will entail an investment of up to €1 billion, one of the largest private investments in the history of the southern Spanish region of Andalusia.
The alliance marks Apical’s entry to the sustainable aviation fuels (SAF) market and a key milestone in RGE’s strategy to produce a range of fuels to decarbonise aviation, maritime and land transportation. Apical, a leading vegetable oil processor, is a member of the Singapore-headquartered RGE group of companies.
The new plant, which is scheduled to begin operation in H1 2026, can produce up to 500,000 tons of SAF and/or renewable diesel annually, enabling the reduction of CO2 emissions by up to 90 per cent, as compared to traditional fuels.
SAF is often viewed as a tool to a zero-emissions future. However, the key global challenge to the production of SAF is access to feedstock (renewable waste and residue raw materials). As a large global integrated processor of vegetable oils, Apical is able to efficiently and sustainably extract waste and residue from its supply chain and its processes in a transparent and traceable manner. (Paid News) Eco Business
---------
Aemetis Awarded $34 Million of Biodiesel Contracts by India Oil Refiners for Delivery in Q2 2023
CUPERTINO, CA , April 17, 2023 (GLOBE NEWSWIRE) -- via NewMediaWire – Aemetis, Inc. (NASDAQ: AMTX) announced today that its Universal Biofuels subsidiary in India, owner and operator of a biodiesel plant located near the Port of Kakinada on India’s east coast, was selected by the three government-controlled oil marketing companies (OMC’s) to supply approximately 8,500,000 gallons of biodiesel over the next three months. Revenues from the shipments are expected to be approximately $34 million of the $538 million of total tender offers issued by the OMC’s to fulfill biodiesel demand during the second quarter of 2023.
Approximately 70% of the 25 billion gallon diesel market in India is supplied by the OMC’s, with the remaining 30% supplied by large non-governmental oil refineries.
“We are pleased to see the Indian government’s commitment to the implementation of the 2022 National Biofuels Policy, and the OMC’s purchasing processes are resulting in significantly increased demand for biodiesel in India,” stated Sanjeev Gupta, Managing Director of the Universal Biofuels subsidiary of Aemetis. “The required product quality testing for the contracts has been completed and biodiesel deliveries have commenced for the contracted period of April, May and June.” Yahoo Finance
---------
UAE Mubadala Capital's Brazil unit to invest $2.5bn to produce renewable fuel
Abu Dhabi-based Mubadala Capital's energy company Acelen will invest more than 12 billion Brazilian real ($2.4 billion) over the next 10 years to produce 1 billion litres of renewable diesel and sustainable aviation kerosene to help accelerate the energy transition in Brazil.
Acelen, which owns the Mataripe Refinery in the Bahia province, plans to start production in the first quarter of 2026, the company said in a recent statement.
Initially, the fuels will be processed using soybean oil and other raw materials and will transition to using macaúba oil, a native Brazilian tree with high energy potential and palm oil.
This will position Acelen as one of largest renewable fuel producers globally. Initially, the fuel will be sold in international markets.
"We will produce sustainable fuel on a global scale, inserting Brazil in the development of the international sustainable chain," said Luiz de Mendonca, Acelen’s chief executive. "This will be Acelen’s first project in renewable fuels. So there is room for us to grow globally in this sector."
Acelen was set up Mubadala Capital, an asset management subsidiary of Mubadala Investment Company, a sovereign investor headquartered in Abu Dhabi. Zawya
---------
UK suggests restricting green jet fuel from waste cooking oil
Green jet fuel made from used cooking oil and animal fats should be restricted on environmental grounds, a recent British government consultation document has suggested, raising questions over whether the EU will follow suit.
The British Department for Transport document, which puts forward possible policy scenarios for the UK’s 2025 sustainable aviation fuel (SAF) law, warns that unless a cap is placed on green jet fuel produced from used cooking oil and animal fats, carbon emissions may rise in other transport sectors.
Fuels derived from used cooking oil and animal fats are commonly referred to as Hydroprocessed Esters and Fatty Acids, or HEFA.
“The purpose of a HEFA cap is to ensure that introducing a SAF mandate does not divert feedstock away from existing uses or raise concerns over sustainability by increasing demand for certain feedstocks,” the consultation document states. EURACTIV
---------
Environment groups sue EU over green label for gas, nuclear
BRUSSELS (AP) — Environmental groups have started legal action against the European Union’s executive branch in a bid to block a move to include natural gas and nuclear power generation on a list of sustainable activities.
The list proposed by the European Commission drew fierce criticism and accusations of greenwashing. On Tuesday, Greenpeace said that it was filing a lawsuit at the European Court of Justice, the top EU court, after the commission refused to reconsider its move.
Greenpeace is asking the European Court of Justice to declare the inclusion of fossil gas and nuclear “as invalid.”
Separately, ClientEarth, WWF’s European Policy Office, Transport & Environment (T&E), and BUND are challenging only the decision to include gas. They say the fossil fuel can’t be considered sustainable because of its adverse environmental impact.
The green labeling system from the European Commission defines what qualifies as an investment in sustainable energy. Initially, it didn’t initially include gas or nuclear. AP News
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April 17, 2023
EU proposed agreement on RED III includes 5.5% target for advanced biofuels
A provisional agreement by the European Union (EU) on the revised Renewable Energy Directive (RED III) included a 5.5% target for advanced biofuels, the European Commission (EC) announced on 30 March.
The proposed agreement set a combined sub-target for advanced biofuels (generally derived from non-food based feedstocks) and renewable fuels of non-biological origin (mostly derived from renewable hydrogen and hydrogen-based synthetic fuels) in the share of renewable energies supplied to the transport sector in 2030. This includes a minimum level of 1% for renewable fuels of non-biological origin (RFNBOs).
“The revision of RED is one of the ‘Fit for 55’ proposals presented by the Commission in July 2021 to make the EU’s climate, energy, land use, transport and taxation policies fit for reducing net greenhouse gas emissions by at least 55% by 2030, compared to 1990 levels,” the EC said.
“Ramping up our production and use of renewable energy is also a key pillar of the REPowerEU Plan, the EU’s strategy to get rid of Russian fossil fuel imports as soon as possible.”
Overall, the proposed agreement would raise the EU’s binding renewable target for 2030 to a minimum of 42.5%, up from the current 32% target and almost doubling the existing share of renewable energy in the EU, the report said. OFI
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Indonesian President Jokowi Talks of Deforestation, Energy Transition in Germany Visit
TEMPO.CO, Jakarta - Indonesian President Joko "Jokowi" Widodo highlighted the country's commitment to maintaining environmental sustainability when delivering a speech at the opening ceremony of the Hannover Messe 2023 at the Hannover Congress Centrum, Germany, on Sunday, April 16.
This issue was brought up as the European Union passed the anti-deforestation law, which was later rejected by some Indonesian oil palm farmers.
Jokowi claimed that this commitment is evident from the number of actions taken to restore the environment. He mentioned that the deforestation rate dropped significantly and was at its lowest in the last 20 years.
“Forest fires have decreased by 88 percent, rehabilitation of 600,000 hectares of mangrove forests will be completed in 2024 which is the largest in the world, and 30,000 hectares of green industrial areas will be built,” Jokowi said.
In addition, Indonesia is targeting 23 percent of the energy sources to come from new and renewable energy (EBT) by 2025. Then, Indonesia also planned to close all coal-fired power plants in 2050. Tempo
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Malaysia-Sarawak adds three source countries for palm workers
KUCHING: Oil palm plantation companies in Sarawak are now allowed to recruit foreign workers from several other countries other than Indonesia.
The Sarawak cabinet has given the green light for these companies to recruit migrant workers from Bangladesh, Nepal, and the Philippines besides Indonesia, according to Sarawak Deputy Minister in the Premier’s Department (Labour, Immigration and Project Monitoring) Datuk Gerawat Gala.
The state government’s relaxation in the recruitment of foreign workers has been lauded by the Sarawak Oil Palm Plantation Owners’ Association, which has for years been vocal in requesting the authorities to help address the critical shortage of workers in the plantation industry.
Association chairman Eric Kiu said it was delighted that the Sarawak government had approved the hiring of foreign workers from more source countries.
“With these additional source countries, employers will now have the option to recruit foreign workers from these countries to meet their labour requirements,” he added. The StarMY
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Ghana-Tafi Dekpor: Women in palm oil business cry for help
Producers of palm oil at Tafi Dekpor, a farming community in the Afadzato South District of the Volta region, are calling on the government, individuals, and organisations to help them produce on a large scale.
The women said some help in the supply of machines, ready market and working on the deplorable nature of the road would increase and sustain their business and production.
Madam Vivian Akpene Aborvor, a palm oil producer and seller, told the Ghana News Agency (GNA) that lack of machines to pound the palm fruits as well as assist in the oil production affected large production of oil for the market.
She said the cost of palm fruits also affected the production adding that the palm oil had to be transported to the market before they were purchased because the deplorable nature of the road prevented buyers from coming to the community.
Madam Aborvor said the cost in transporting the oil to the market was also high because only motorbikes and tricycles could ply the deplorable roads and they charged exorbitant fares.
She said they currently sold a bottle of palm oil for GH₵17.00 in the market but GH₵15.00 when buyers came to the community. News Ghana
EU proposed agreement on RED III includes 5.5% target for advanced biofuels
A provisional agreement by the European Union (EU) on the revised Renewable Energy Directive (RED III) included a 5.5% target for advanced biofuels, the European Commission (EC) announced on 30 March.
The proposed agreement set a combined sub-target for advanced biofuels (generally derived from non-food based feedstocks) and renewable fuels of non-biological origin (mostly derived from renewable hydrogen and hydrogen-based synthetic fuels) in the share of renewable energies supplied to the transport sector in 2030. This includes a minimum level of 1% for renewable fuels of non-biological origin (RFNBOs).
“The revision of RED is one of the ‘Fit for 55’ proposals presented by the Commission in July 2021 to make the EU’s climate, energy, land use, transport and taxation policies fit for reducing net greenhouse gas emissions by at least 55% by 2030, compared to 1990 levels,” the EC said.
“Ramping up our production and use of renewable energy is also a key pillar of the REPowerEU Plan, the EU’s strategy to get rid of Russian fossil fuel imports as soon as possible.”
Overall, the proposed agreement would raise the EU’s binding renewable target for 2030 to a minimum of 42.5%, up from the current 32% target and almost doubling the existing share of renewable energy in the EU, the report said. OFI
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Indonesian President Jokowi Talks of Deforestation, Energy Transition in Germany Visit
TEMPO.CO, Jakarta - Indonesian President Joko "Jokowi" Widodo highlighted the country's commitment to maintaining environmental sustainability when delivering a speech at the opening ceremony of the Hannover Messe 2023 at the Hannover Congress Centrum, Germany, on Sunday, April 16.
This issue was brought up as the European Union passed the anti-deforestation law, which was later rejected by some Indonesian oil palm farmers.
Jokowi claimed that this commitment is evident from the number of actions taken to restore the environment. He mentioned that the deforestation rate dropped significantly and was at its lowest in the last 20 years.
“Forest fires have decreased by 88 percent, rehabilitation of 600,000 hectares of mangrove forests will be completed in 2024 which is the largest in the world, and 30,000 hectares of green industrial areas will be built,” Jokowi said.
In addition, Indonesia is targeting 23 percent of the energy sources to come from new and renewable energy (EBT) by 2025. Then, Indonesia also planned to close all coal-fired power plants in 2050. Tempo
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Malaysia-Sarawak adds three source countries for palm workers
KUCHING: Oil palm plantation companies in Sarawak are now allowed to recruit foreign workers from several other countries other than Indonesia.
The Sarawak cabinet has given the green light for these companies to recruit migrant workers from Bangladesh, Nepal, and the Philippines besides Indonesia, according to Sarawak Deputy Minister in the Premier’s Department (Labour, Immigration and Project Monitoring) Datuk Gerawat Gala.
The state government’s relaxation in the recruitment of foreign workers has been lauded by the Sarawak Oil Palm Plantation Owners’ Association, which has for years been vocal in requesting the authorities to help address the critical shortage of workers in the plantation industry.
Association chairman Eric Kiu said it was delighted that the Sarawak government had approved the hiring of foreign workers from more source countries.
“With these additional source countries, employers will now have the option to recruit foreign workers from these countries to meet their labour requirements,” he added. The StarMY
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Ghana-Tafi Dekpor: Women in palm oil business cry for help
Producers of palm oil at Tafi Dekpor, a farming community in the Afadzato South District of the Volta region, are calling on the government, individuals, and organisations to help them produce on a large scale.
The women said some help in the supply of machines, ready market and working on the deplorable nature of the road would increase and sustain their business and production.
Madam Vivian Akpene Aborvor, a palm oil producer and seller, told the Ghana News Agency (GNA) that lack of machines to pound the palm fruits as well as assist in the oil production affected large production of oil for the market.
She said the cost of palm fruits also affected the production adding that the palm oil had to be transported to the market before they were purchased because the deplorable nature of the road prevented buyers from coming to the community.
Madam Aborvor said the cost in transporting the oil to the market was also high because only motorbikes and tricycles could ply the deplorable roads and they charged exorbitant fares.
She said they currently sold a bottle of palm oil for GH₵17.00 in the market but GH₵15.00 when buyers came to the community. News Ghana
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April 16, 2023
Indonesia’s Palm Oil Export to China, Bangladesh on Rise
Jakarta. Indonesia’s palm oil export to China and Bangladesh saw a huge jump this February, according to the industry association.
The Indonesian Palm Oil Association (Gapki) recently revealed that the country’s palm oil export to China witnessed a 55-percent increase from 522,900 tons in January to 809,500 tons a month later. Indonesia shipped 154,000 tons of palm oil to Bangladesh in February. This marked an estimated 289 percent jump from just 39,600 tons at the beginning of the year.
The figures made China and Bangladesh the top two export destinations for Indonesian palm oil that booked the highest increase volume-wise in February.
“We are also seeing an increase in palm oil exports to the Netherlands,” the newly elected Gapki chairman Eddy Martono told reporters in Jakarta on Friday evening. Jakarta Globe
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Indonesia-Palm oil industry contributes US$5.29 bln in forex: Gapki
Jakarta (ANTARA) - Chairperson of the Indonesian Palm Oil Association (Gapki) Eddy Martono has revealed that the domestic palm oil industry contributed US$5.29 billion in foreign exchange in the period from January to February this year.
"Palm oil exports in Indonesia's trade balance have a positive contribution, as of February this year, it was still US$5.29 billion. This causes our trade balance to be positive,” he said at a media gathering held in Jakarta on Friday.
The value of exports increased from US$2.60 billion in January to US$2.68 billion in February, he added.
This increase was mainly due to an increase in the exports of refined palm oil from 2.121 million tons in January to 2.254 million tons in February (the price of refined products was higher than the price of CPO raw materials), Martono said.
According to Gapki, domestic consumption gradually increased to 20.9 million tons in 2022 from 18.4 million tons in 2021. Consumption in 2020 and 2019 was recorded at 17.35 million tons and 16.7 million tons respectively.
"If we look at production in the last four years, the trend has been stagnant, while from the consumption graph, it has actually increased," he explained.
He said he believes that an increase in consumption will occur in 2023 because of the mandatory B35 program, which is expected to boost consumption by up to 3 million tons.
To achieve this target, he asked the government to carry out the people's oil palm rejuvenation (PSR) program without delay. Antara News
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Indonesia-Netherlands supports international trade agreements, says minister Sigrid Kaag
Jakarta (ANTARA) - Dutch Minister for Foreign Trade and Development Cooperation Sigrid Kaag has said that the Netherlands supports international trade negotiations, including the ongoing process of the Comprehensive Economic Partnership Agreement between Indonesia and the European Union.
“I believe that inclusive trade agreements can foster new forms of prosperity, jobs, and enhancements of understanding. I think it is very important,” she told ANTARA in Jakarta, on Monday evening.
When asked whether the Netherlands supports the Indonesia-EU CEPA, Kaag reiterated that her country is supportive of all trade negotiations.
“Of course we have to see what the end outcome is, but we are firm supporters of international trade agreements speaking to the SDGs, creation of wealth, and of course the distribution of wealth,” she stated.
The Netherlands, she continued, will be very supportive on the issues regarding palm oil, in particular, as she observed that there is tension between the European Union and Indonesia in relation to palm oil. Antara News
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Indonesia’s Palm Oil Export to China, Bangladesh on Rise
Jakarta. Indonesia’s palm oil export to China and Bangladesh saw a huge jump this February, according to the industry association.
The Indonesian Palm Oil Association (Gapki) recently revealed that the country’s palm oil export to China witnessed a 55-percent increase from 522,900 tons in January to 809,500 tons a month later. Indonesia shipped 154,000 tons of palm oil to Bangladesh in February. This marked an estimated 289 percent jump from just 39,600 tons at the beginning of the year.
The figures made China and Bangladesh the top two export destinations for Indonesian palm oil that booked the highest increase volume-wise in February.
“We are also seeing an increase in palm oil exports to the Netherlands,” the newly elected Gapki chairman Eddy Martono told reporters in Jakarta on Friday evening. Jakarta Globe
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Indonesia-Palm oil industry contributes US$5.29 bln in forex: Gapki
Jakarta (ANTARA) - Chairperson of the Indonesian Palm Oil Association (Gapki) Eddy Martono has revealed that the domestic palm oil industry contributed US$5.29 billion in foreign exchange in the period from January to February this year.
"Palm oil exports in Indonesia's trade balance have a positive contribution, as of February this year, it was still US$5.29 billion. This causes our trade balance to be positive,” he said at a media gathering held in Jakarta on Friday.
The value of exports increased from US$2.60 billion in January to US$2.68 billion in February, he added.
This increase was mainly due to an increase in the exports of refined palm oil from 2.121 million tons in January to 2.254 million tons in February (the price of refined products was higher than the price of CPO raw materials), Martono said.
According to Gapki, domestic consumption gradually increased to 20.9 million tons in 2022 from 18.4 million tons in 2021. Consumption in 2020 and 2019 was recorded at 17.35 million tons and 16.7 million tons respectively.
"If we look at production in the last four years, the trend has been stagnant, while from the consumption graph, it has actually increased," he explained.
He said he believes that an increase in consumption will occur in 2023 because of the mandatory B35 program, which is expected to boost consumption by up to 3 million tons.
To achieve this target, he asked the government to carry out the people's oil palm rejuvenation (PSR) program without delay. Antara News
----------
Indonesia-Netherlands supports international trade agreements, says minister Sigrid Kaag
Jakarta (ANTARA) - Dutch Minister for Foreign Trade and Development Cooperation Sigrid Kaag has said that the Netherlands supports international trade negotiations, including the ongoing process of the Comprehensive Economic Partnership Agreement between Indonesia and the European Union.
“I believe that inclusive trade agreements can foster new forms of prosperity, jobs, and enhancements of understanding. I think it is very important,” she told ANTARA in Jakarta, on Monday evening.
When asked whether the Netherlands supports the Indonesia-EU CEPA, Kaag reiterated that her country is supportive of all trade negotiations.
“Of course we have to see what the end outcome is, but we are firm supporters of international trade agreements speaking to the SDGs, creation of wealth, and of course the distribution of wealth,” she stated.
The Netherlands, she continued, will be very supportive on the issues regarding palm oil, in particular, as she observed that there is tension between the European Union and Indonesia in relation to palm oil. Antara News
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April 15, 2023
India buys more palm oils as vegoil imports rise 22 per cent in November-March
The palm group of oils continued to dominate the vegetable oil import basket, making up 63 per cent of the total during the November 2022-March 2023 period of the current oil year to October, even as shipments into the country increased by 22 per cent during the period.
Data from the Solvent Extractors’ Association of India (SEA) shows that the share of the palm group of oils has increased this season compared to soft oils, which commanded a 53 per cent share of the imports last season. The Hindu Businessline
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Nigeria-The Scandalous Palm Oil Importation
At least, N299.6bn of palm oil was imported by Nigeria from 2017 to 2022 despite the product being on the June 2015 list of import items not valid for allocation of foreign exchange by the Central Bank of Nigeria (CBN), an analysis of Nigeria’s Foreign Trade by Daily Trust has revealed.
With the National Bureau of Statistics (NBS) report indicating that the product itemed ‘Palm Crude Oil’ is often among the top five imported agricultural products into the country, analysis shows that palm oil was imported more in 2021 at N148.2bn, followed by 2022 with N70.2bn and 2018 with N32.2bn. In 2020, N22.bn of the product was imported while in 2017, N21.2bn and 2019 had the least importation with N19bn.
And Malaysia topped the list of nations where palm oil was imported from by Nigeria within the period at N151.5bn, followed by India – N65.2bn, Ivory Coast – N22.4bn, China – N20.3bn, Singapore -N20.6bn, Indonesia – N17.1bn, Columbia – N1.4bn, United States – N727m, Ghana – N130.6m and Cameroon – N4.26m.
Yet, in the 1950s and 1960s, oil palm farming was a key sector of the Nigerian economy, which generated about 43 per cent of the world’s total production. Nigeria was a leader in the world palm oil market then, as it satisfied both domestic and export needs. Daily Trust
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Cepsa to build Spanish HVO plant with Apical
Abu Dhabi-owned Cepsa said it plans to build a 500,000 t/yr second-generation hydrotreated vegetable oil (HVO) plant in southern Spain in partnership with Bio Oils, the Spanish subsidiary of Singapore-based palm oil producer Apical.
The plant will be located near the city of Huelva, where Cepsa operates a 220,000 b/d refinery and Bio Oils runs a 500,000 t/yr fatty acid methyl ester (Fame) biodiesel facility. Cepsa is Bio Oils' main customer and the pair share port installations and vessels in Huelva. Cepsa announced plans for an HVO facility at Huelva last month, putting the cost of the project at €1bn ($1.05bn). That investment will now be shared with Bio Oils.
Feedstock supply for the new plant has been secured through a long-term contract with Apical, which operates eight palm oil refineries, four biodiesel facilities and two palm kernel crushing facilities worldwide. Apical sold over 11mn t of palm oil products in 2021. Cepsa said it will source "organic waste such as agricultural residue" and used cooking oil (UCO) from Apical and this will make up most of the plant's feedstock.
Cepsa expects the HVO plant to come on stream in the first half of 2026, taking the firm towards its target to produce 2.5mn t/yr of biofuels by 2030, including 800,000 t/yr of sustainable aviation fuel (SAF). Cepsa's existing biofuels production capacity at Huelva and its other Spanish refinery — the 244,000 b/d Algeciras complex — had increased to 705,000 t/yr by the end of 2022 from 578,000 t/yr a year earlier. Argus Media
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India buys more palm oils as vegoil imports rise 22 per cent in November-March
The palm group of oils continued to dominate the vegetable oil import basket, making up 63 per cent of the total during the November 2022-March 2023 period of the current oil year to October, even as shipments into the country increased by 22 per cent during the period.
Data from the Solvent Extractors’ Association of India (SEA) shows that the share of the palm group of oils has increased this season compared to soft oils, which commanded a 53 per cent share of the imports last season. The Hindu Businessline
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Nigeria-The Scandalous Palm Oil Importation
At least, N299.6bn of palm oil was imported by Nigeria from 2017 to 2022 despite the product being on the June 2015 list of import items not valid for allocation of foreign exchange by the Central Bank of Nigeria (CBN), an analysis of Nigeria’s Foreign Trade by Daily Trust has revealed.
With the National Bureau of Statistics (NBS) report indicating that the product itemed ‘Palm Crude Oil’ is often among the top five imported agricultural products into the country, analysis shows that palm oil was imported more in 2021 at N148.2bn, followed by 2022 with N70.2bn and 2018 with N32.2bn. In 2020, N22.bn of the product was imported while in 2017, N21.2bn and 2019 had the least importation with N19bn.
And Malaysia topped the list of nations where palm oil was imported from by Nigeria within the period at N151.5bn, followed by India – N65.2bn, Ivory Coast – N22.4bn, China – N20.3bn, Singapore -N20.6bn, Indonesia – N17.1bn, Columbia – N1.4bn, United States – N727m, Ghana – N130.6m and Cameroon – N4.26m.
Yet, in the 1950s and 1960s, oil palm farming was a key sector of the Nigerian economy, which generated about 43 per cent of the world’s total production. Nigeria was a leader in the world palm oil market then, as it satisfied both domestic and export needs. Daily Trust
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Cepsa to build Spanish HVO plant with Apical
Abu Dhabi-owned Cepsa said it plans to build a 500,000 t/yr second-generation hydrotreated vegetable oil (HVO) plant in southern Spain in partnership with Bio Oils, the Spanish subsidiary of Singapore-based palm oil producer Apical.
The plant will be located near the city of Huelva, where Cepsa operates a 220,000 b/d refinery and Bio Oils runs a 500,000 t/yr fatty acid methyl ester (Fame) biodiesel facility. Cepsa is Bio Oils' main customer and the pair share port installations and vessels in Huelva. Cepsa announced plans for an HVO facility at Huelva last month, putting the cost of the project at €1bn ($1.05bn). That investment will now be shared with Bio Oils.
Feedstock supply for the new plant has been secured through a long-term contract with Apical, which operates eight palm oil refineries, four biodiesel facilities and two palm kernel crushing facilities worldwide. Apical sold over 11mn t of palm oil products in 2021. Cepsa said it will source "organic waste such as agricultural residue" and used cooking oil (UCO) from Apical and this will make up most of the plant's feedstock.
Cepsa expects the HVO plant to come on stream in the first half of 2026, taking the firm towards its target to produce 2.5mn t/yr of biofuels by 2030, including 800,000 t/yr of sustainable aviation fuel (SAF). Cepsa's existing biofuels production capacity at Huelva and its other Spanish refinery — the 244,000 b/d Algeciras complex — had increased to 705,000 t/yr by the end of 2022 from 578,000 t/yr a year earlier. Argus Media
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April 14, 2023
EU Parliament to adopt new law to stop EU sale of products causing deforestation
MEPs will debate on Monday and vote on Wednesday on a new law obliging companies to ensure products sold in the EU do not come from deforested land anywhere in the world.
The new regulation, already agreed with EU member states, helps fight climate change and biodiversity loss by preventing deforestation related to EU consumption of products from cattle, cocoa, coffee, palm-oil, soya, wood, rubber, charcoal and printed paper. Before such products can be placed on the EU market, companies must verify and issue a so-called “due diligence” statement that the products have not led to deforestation and forest degradation anywhere in the world.
Background
The UN Food and Agriculture Organization (FAO) estimates that 420 million hectares of forest — an area larger than the EU — were lost to deforestation between 1990 and 2020. EU consumption represents around 10% of global deforestation. Palm oil and soya account for more than two-thirds of this.
In October 2020, Parliament made use of its prerogative in the Treaty to ask the Commission to come forward with legislation to halt EU-driven global deforestation. Europarl.Europa
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Q&A: What does the EU’s new deforestation law mean for climate and biodiversity?
EU policymakers are expecting to sign off on a new law in the coming weeks aiming to prevent the sale of products such as palm oil, coffee and chocolate if they have been produced on deforested land.
Under the proposed legislation – which has been in the works for several years – companies need to prove that they did not produce certain goods on land that has been deforested since 31 December 2020.
The law has been welcomed by EU institutes and nations who say it will help to reduce the bloc’s contribution to deforestation around the world.
But others have criticised the regulation for the effects it may have on non-EU countries and small farmers.
In this article, Carbon Brief examines how the legislation will work, the issues raised by commodity producer countries such as Malaysia and how the EU assessed the law’s potential environmental impacts. Carbon Brief
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EU/Malaysia. In the palm of your hand
Increasing the use of sustainable biofuels is the most effective way to reduce the carbon intensity of fuels for the transport and energy sectors in the European Union.
Waste and residues from agricultural activities have the best potential to deliver zero emissions energy as traditional sources of farm emissions from the biodegradation of farm wastes are converted into renewable sources of energy.
The European Union, in its drive to decarbonise, has opened a new session for public input into sustainable biofuels and biogases: Sustainable biofuels and biogases are important to increase the share of renewable energy in sectors that are difficult to decarbonise, such as the aviation and maritime sector.
There is an approved list of sustainable biofuel feedstocks in Annex IX (Parts A and B) to this regulation. The Commission must regularly review the list and add any feedstocks to the Annex that meet the criteria set out in Article 28(6).
Raising issues
The Malaysian Palm Oil Council (MPOC) has noted with concern that an assessment of feedstocks awarded by the European Commission (DG ENER) under Tender ENER/ C1/2019-412 to a...Biofuels News
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As ageing trees sap yields, Asian palm oil firms race to replant
KUALA LUMPUR, April 14 (Reuters) - When palm oil prices soared to record highs last year, a Malaysian estate manager surnamed Lim postponed replanting his old, unproductive trees for a third consecutive year to lock in profits - a decision he regrets and is scrambling to fix.
Across Indonesia and Malaysia, which produce 85% of the world's palm oil, growers are ramping up replanting after a decade of letting estates grow older, an ageing trend that threatens to tighten supply of the commodity that accounts for nearly 60% of global vegetable oil.
Oil palms start losing productivity after 20 years. Besides the cost of replanting, it takes three years for new trees to grow and yield a crop - making that land unproductive in the meantime.
"If I had replanted consistently over the past 10-15 years, my yields and worker productivity could have been better,” said Lim, now rushing to catch up on the backlog by replanting 5% of his 2,300-hectare estate in Perak state this year and up to 20% next year.
"The joy from the high prices was short-lived," said Lim, referring to prices that reached a record 7,268 ringgit ($1,647.33) a tonne last year. Lim wanted to be referred to only by his family name due to business confidentiality, Reuters
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Growing Sustainable Futures: A Story Of Palm Oil Production
Palm oil production is a complex process that involves several stages, from planting to harvesting, processing, and distribution. Here is a brief overview of the main steps involved in the production of palm oil:
Planting:
Palm oil is derived from the fruit of oil palm trees, which are typically grown in tropical regions such as Southeast Asia, Africa, and South America. The trees are planted in large plantations and take around four years to reach maturity. US Funds
EU Parliament to adopt new law to stop EU sale of products causing deforestation
MEPs will debate on Monday and vote on Wednesday on a new law obliging companies to ensure products sold in the EU do not come from deforested land anywhere in the world.
The new regulation, already agreed with EU member states, helps fight climate change and biodiversity loss by preventing deforestation related to EU consumption of products from cattle, cocoa, coffee, palm-oil, soya, wood, rubber, charcoal and printed paper. Before such products can be placed on the EU market, companies must verify and issue a so-called “due diligence” statement that the products have not led to deforestation and forest degradation anywhere in the world.
Background
The UN Food and Agriculture Organization (FAO) estimates that 420 million hectares of forest — an area larger than the EU — were lost to deforestation between 1990 and 2020. EU consumption represents around 10% of global deforestation. Palm oil and soya account for more than two-thirds of this.
In October 2020, Parliament made use of its prerogative in the Treaty to ask the Commission to come forward with legislation to halt EU-driven global deforestation. Europarl.Europa
----------
Q&A: What does the EU’s new deforestation law mean for climate and biodiversity?
EU policymakers are expecting to sign off on a new law in the coming weeks aiming to prevent the sale of products such as palm oil, coffee and chocolate if they have been produced on deforested land.
Under the proposed legislation – which has been in the works for several years – companies need to prove that they did not produce certain goods on land that has been deforested since 31 December 2020.
The law has been welcomed by EU institutes and nations who say it will help to reduce the bloc’s contribution to deforestation around the world.
But others have criticised the regulation for the effects it may have on non-EU countries and small farmers.
In this article, Carbon Brief examines how the legislation will work, the issues raised by commodity producer countries such as Malaysia and how the EU assessed the law’s potential environmental impacts. Carbon Brief
----------
EU/Malaysia. In the palm of your hand
Increasing the use of sustainable biofuels is the most effective way to reduce the carbon intensity of fuels for the transport and energy sectors in the European Union.
Waste and residues from agricultural activities have the best potential to deliver zero emissions energy as traditional sources of farm emissions from the biodegradation of farm wastes are converted into renewable sources of energy.
The European Union, in its drive to decarbonise, has opened a new session for public input into sustainable biofuels and biogases: Sustainable biofuels and biogases are important to increase the share of renewable energy in sectors that are difficult to decarbonise, such as the aviation and maritime sector.
There is an approved list of sustainable biofuel feedstocks in Annex IX (Parts A and B) to this regulation. The Commission must regularly review the list and add any feedstocks to the Annex that meet the criteria set out in Article 28(6).
Raising issues
The Malaysian Palm Oil Council (MPOC) has noted with concern that an assessment of feedstocks awarded by the European Commission (DG ENER) under Tender ENER/ C1/2019-412 to a...Biofuels News
----------
As ageing trees sap yields, Asian palm oil firms race to replant
KUALA LUMPUR, April 14 (Reuters) - When palm oil prices soared to record highs last year, a Malaysian estate manager surnamed Lim postponed replanting his old, unproductive trees for a third consecutive year to lock in profits - a decision he regrets and is scrambling to fix.
Across Indonesia and Malaysia, which produce 85% of the world's palm oil, growers are ramping up replanting after a decade of letting estates grow older, an ageing trend that threatens to tighten supply of the commodity that accounts for nearly 60% of global vegetable oil.
Oil palms start losing productivity after 20 years. Besides the cost of replanting, it takes three years for new trees to grow and yield a crop - making that land unproductive in the meantime.
"If I had replanted consistently over the past 10-15 years, my yields and worker productivity could have been better,” said Lim, now rushing to catch up on the backlog by replanting 5% of his 2,300-hectare estate in Perak state this year and up to 20% next year.
"The joy from the high prices was short-lived," said Lim, referring to prices that reached a record 7,268 ringgit ($1,647.33) a tonne last year. Lim wanted to be referred to only by his family name due to business confidentiality, Reuters
----------
Growing Sustainable Futures: A Story Of Palm Oil Production
Palm oil production is a complex process that involves several stages, from planting to harvesting, processing, and distribution. Here is a brief overview of the main steps involved in the production of palm oil:
Planting:
Palm oil is derived from the fruit of oil palm trees, which are typically grown in tropical regions such as Southeast Asia, Africa, and South America. The trees are planted in large plantations and take around four years to reach maturity. US Funds
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April 13, 2023
Briefing Paper: Implications of the EU Deforestation Regulation (EUDR) for oil palm smallholders
1. Purpose
This paper provides an overview of the reality of oil palm smallholders with regard to their ability to meet the increasingly stringent sustainability and traceability requirements by the global supply chain. By providing this information we hope to clarify the potential impacts of the new EU Deforestation Regulation (EUDR)on smallholder inclusivity of the palm oil value chains.
2. The Concern
On 6 December 2022, the EU Council and Parliament reached a provisional deal on a proposal to minimize the risk of deforestation and forest degradation associated with products that are imported into or exported from the European Union. The new regulation, referred to as the EU Deforestation Regulation (EUDR) would strengthen the EU’s position as the champion of deforestation-free supply chains. The EU already leads the world in the procurement and use of certified sustainable palm oil (CSPO) that meet certification standards such as the Roundtable on Sustainable Palm Oil (RSPO). In 2021, 93% of European imports of palm oil were certified as sustainable, of which 67% was ‘Segregated RSPO certified’ which meant that the palm oil entering the EU can be traced to the plot at which it
was originally produced. The EU’s demand for CSPO is mainly satisfied by the larger producers who are capable of meeting the stringent sustainability and traceability requirements. Smallholders, even though they collectively account for 35% to 40% of the global production, have only a small share of the EU market. Globally, smallholders produce less than 10% of the total RSPO Certified Sustainable production, while independent smallholders (who are not formally associated with plantation companies) account for less than 2% of total volume of RSPO-certified palm oil. These stringent sustainability requirements and the lack of appropriate supply chain mechanisms have limited the access of smallholder products to the EU market. The introduction of the new EUDR is likely to further exacerbate this situation and could contribute to excluding smallholders from the EU market. CPOPC
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THE EU DEFORESTATION REGULATION: THE CHALLENGE AND IMPORTANCE OF INCLUSIVE IMPLEMENTATION IN PALM OIL
Palm oil presents some revealing challenges as regards the tricky task of implementing the EU Deforestation Regulation. In the second half of April, the European Parliament and the European Council are expected to adopt the new EU regulation against deforestation (EUDR). The new regulation is a major milestone showing the commitment of the European Union to contribute to reducing global deforestation. It should strengthen the EU’s position as the champion of deforestation-free supply chains. However, while this all sounds promising, it will also mark a race against the clock for millions of smallholders in the global south. This can be seen clearly when we look at the palm oil supply chain. This week The Netherlands Oils and Fats Industry (MVO), the Council for Palm Oil Producing Countries (CPOPC) and Solidaridad published a briefing paper to explain the implications of the new Regulation for oil palm smallholders at the beginning of the palm oil value chain. The paper includes recommendations for how the EUDR can be implemented in a way to avoid smallholder exclusion and ensure a just transition.
The EUDR has the potential to be a game changer in the fight against deforestation, and we are excited to see how it sets the stage for things to come. There are risks, of course, but if its implementation takes account of lessons from ground and addresses specific challenges of each commodity, it can really drive meaningful impact. With the right additional measures and approach to implementation, the EUDR can help smallholders be part of the Green Deal. This should be taken into account. To quote Von der Leyen, the transition will “either be working for all and be just, or it will not work at all”. Solidaridad
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The EU Deforestation Regulation: The challenge and importance of inclusive implementation in palm oil
In the second half of April, the European Parliament and the European Council are expected to adopt the new EU regulation against deforestation (EUDR). The new regulation is a major milestone showing the commitment of the European Union to contribute to reducing global deforestation.
Marieke Leegwater, Solidaridad
Dr Puah Chiew Wei, Council of Palm Oil Producing Countries
Eddy Esselink, MVO
It should strengthen the EU’s position as the champion of deforestation-free supply chains. However, while this all sounds promising, it will also mark a race against the clock for millions of smallholders in the global south. This can be seen clearly when we look at the palm oil supply chain. This week The Netherlands Oils and Fats Industry (MVO), the Council for Palm Oil Producing Countries (CPOPC) and Solidaridad published a briefing paper to explain the implications of the new Regulation for oil palm smallholders at the beginning of the palm oil value chain. The paper includes recommendations for how the EUDR can be implemented in a way to avoid smallholder exclusion and ensure a just transition. EURACTIV
Briefing Paper: Implications of the EU Deforestation Regulation (EUDR) for oil palm smallholders
1. Purpose
This paper provides an overview of the reality of oil palm smallholders with regard to their ability to meet the increasingly stringent sustainability and traceability requirements by the global supply chain. By providing this information we hope to clarify the potential impacts of the new EU Deforestation Regulation (EUDR)on smallholder inclusivity of the palm oil value chains.
2. The Concern
On 6 December 2022, the EU Council and Parliament reached a provisional deal on a proposal to minimize the risk of deforestation and forest degradation associated with products that are imported into or exported from the European Union. The new regulation, referred to as the EU Deforestation Regulation (EUDR) would strengthen the EU’s position as the champion of deforestation-free supply chains. The EU already leads the world in the procurement and use of certified sustainable palm oil (CSPO) that meet certification standards such as the Roundtable on Sustainable Palm Oil (RSPO). In 2021, 93% of European imports of palm oil were certified as sustainable, of which 67% was ‘Segregated RSPO certified’ which meant that the palm oil entering the EU can be traced to the plot at which it
was originally produced. The EU’s demand for CSPO is mainly satisfied by the larger producers who are capable of meeting the stringent sustainability and traceability requirements. Smallholders, even though they collectively account for 35% to 40% of the global production, have only a small share of the EU market. Globally, smallholders produce less than 10% of the total RSPO Certified Sustainable production, while independent smallholders (who are not formally associated with plantation companies) account for less than 2% of total volume of RSPO-certified palm oil. These stringent sustainability requirements and the lack of appropriate supply chain mechanisms have limited the access of smallholder products to the EU market. The introduction of the new EUDR is likely to further exacerbate this situation and could contribute to excluding smallholders from the EU market. CPOPC
----------
THE EU DEFORESTATION REGULATION: THE CHALLENGE AND IMPORTANCE OF INCLUSIVE IMPLEMENTATION IN PALM OIL
Palm oil presents some revealing challenges as regards the tricky task of implementing the EU Deforestation Regulation. In the second half of April, the European Parliament and the European Council are expected to adopt the new EU regulation against deforestation (EUDR). The new regulation is a major milestone showing the commitment of the European Union to contribute to reducing global deforestation. It should strengthen the EU’s position as the champion of deforestation-free supply chains. However, while this all sounds promising, it will also mark a race against the clock for millions of smallholders in the global south. This can be seen clearly when we look at the palm oil supply chain. This week The Netherlands Oils and Fats Industry (MVO), the Council for Palm Oil Producing Countries (CPOPC) and Solidaridad published a briefing paper to explain the implications of the new Regulation for oil palm smallholders at the beginning of the palm oil value chain. The paper includes recommendations for how the EUDR can be implemented in a way to avoid smallholder exclusion and ensure a just transition.
The EUDR has the potential to be a game changer in the fight against deforestation, and we are excited to see how it sets the stage for things to come. There are risks, of course, but if its implementation takes account of lessons from ground and addresses specific challenges of each commodity, it can really drive meaningful impact. With the right additional measures and approach to implementation, the EUDR can help smallholders be part of the Green Deal. This should be taken into account. To quote Von der Leyen, the transition will “either be working for all and be just, or it will not work at all”. Solidaridad
----------
The EU Deforestation Regulation: The challenge and importance of inclusive implementation in palm oil
In the second half of April, the European Parliament and the European Council are expected to adopt the new EU regulation against deforestation (EUDR). The new regulation is a major milestone showing the commitment of the European Union to contribute to reducing global deforestation.
Marieke Leegwater, Solidaridad
Dr Puah Chiew Wei, Council of Palm Oil Producing Countries
Eddy Esselink, MVO
It should strengthen the EU’s position as the champion of deforestation-free supply chains. However, while this all sounds promising, it will also mark a race against the clock for millions of smallholders in the global south. This can be seen clearly when we look at the palm oil supply chain. This week The Netherlands Oils and Fats Industry (MVO), the Council for Palm Oil Producing Countries (CPOPC) and Solidaridad published a briefing paper to explain the implications of the new Regulation for oil palm smallholders at the beginning of the palm oil value chain. The paper includes recommendations for how the EUDR can be implemented in a way to avoid smallholder exclusion and ensure a just transition. EURACTIV
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April 12, 2023
EU: 20+ leading businesses & networks call for alignment of CSDDD with international standards on sustainability due diligence
n 11 April, more than 20 leading businesses and networks released a joint statement calling for alignment of the EU's Corporate Sustainability Due Diligence Directive (CSDDD) with the international standards of the UN Guiding Principles and the OECD Guidelines for Multinational Enterprises. The group comes from a range of countries and sectors and includes Unilever, Mars, Ingka Group | IKEA, Crédit Mutuel, Aviva Investors, Ericsson, Hapag-Lloyd, Novo Nordisk, the Global Network Initiative (GNI) and others.
Both the proposal published by the European Commission in February 2022 and the position adopted by the European Council in December 2022 depart from the international standards in various ways. Ahead of key votes in the European Parliament (EP)'s Committee on Legal Affairs and the EP plenary, signatories to the statement urge MEPs to adopt a text that is more closely aligned with the UNGPs and OECD Guidelines.
The statement outlines five key points: Business-Humanrights
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Could an EU law to save the rainforest destroy palm oil farmers?
CAREY ISLAND, MALAYSIA – Malaysian palm oil farmer Reta Lajah is one of only a few in her village to be certified green and ethical, after a yearlong journey to join a global initiative that she hopes will help her navigate a new European Union law to curb deforestation.Yet, while Reta’s farm in Sungai Judah village on Carey Island, about 60 kilometers from Kuala Lumpur, will protect wildlife and forests, aim to resolve any land disputes and use green growing methods, there is no guarantee she will be able to sell to Europe’s premium-paying buyers in the future.
Agreed in December and due to take effect within two years, the EU law will force global suppliers of commodities like palm oil, soy and cocoa to prove that their supply chains are not fueling forest destruction.
Green groups warn it could leave many small-scale farmers out in the cold because of requirements for detailed tracing of a product’s source, fire controls and land mapping, which many will struggle to meet with limited resources. Japan Times/ Reuters
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OPINION: Are EU deforestation rules about recolonising the Global South?
The European Union's Deforestation-Free Regulation (or EU-DR) is the new EU tool claimed to address deforestation — by imposing a unilateral rule that obliges companies importing certain goods to certify that such products are not linked to deforestation, after 31 December 2020.
Those targeted products are either in direct competition with the EU's products such as beef, soya, palm oil, and timber products, or not farmed in EU — such as coffee, cocoa, and rubber. The EU-DR has excluded the EU's own degraded and destroyed millions of hectares of peatlands, emitting massive pollution. It is known that rewetting all EU peatland is against EU farming subsidies.
Clearly, the EU-DR is about how to force other nations, especially in the Gobal South, to follow EU rules to protect its own products and is not about real concern of the environment. If it is a genuine concern on the link of farming and environmental degradation, EU drained and degraded peatland should have been included.
The EU unilaterally imposed an obligation of origin-tracing by using geolocation of where the products are farmed. Farmers, including millions of small farmers who own less or around one hectare and living across the Global South should all buy smartphones and geotag their farms to be given, known, processed, verified and inspected by EU officials. Clearly, with no regard of the exporting countries' laws of data privacy. EU Observer
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EU Parliament struggles to agree on due diligence rules before key vote
EU lawmakers in the leading legal affairs committee of the European Parliament are expected to vote on their position on the proposed corporate accountability rules towards the end of April, although some key points remain open.
The corporate sustainability due diligence directive was proposed by the European Commission in February 2022 to ensure companies are responsible for human rights and environmental breaches along their value chain.
The proposed legislation would oblige large companies with a turnover of more than €150 million and smaller companies active in risk sectors to identify, prevent, and mitigate human rights abuses and environmental violations in their value chain.
The legal affairs committee, which is leading the Parliament’s work on the file, is expected to vote on its report on 25 April. This would allow the Parliament to finalise its position by the end of May and vote on it during the 31 May – 1 June plenary session, to then quickly enter into negotiations with member state governments in the EU Council.
While member states agreed on their common position regarding the due diligence rules in December 2022, the discussions in Parliament have taken longer than expected due to very divergent positions of political groups.
Ahead of the expected vote on the draft report in the last week of April, there will be a last meeting to solve the contentious points in the week before.
However, according to sources close to the negotiations, it is possible that an agreement will not be found, meaning that the committee vote might need to be postponed. The committee vote was already delayed from March to April.
‘Use of products’
According to documents seen by EURACTIV, EU lawmakers have yet to agree whether due diligence obligations should apply to the downstream use of products or whether they should be restricted to the upstream supply chain of companies. EURACTIV
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THE UK MAY INTRODUCE MANDATORY DUE DILIGENCE FOR FINANCING FOREST-RISK SECTORS
There is a danger that misguided investment and financial services could undo advances that have been painstakingly achieved through environmental legislation. In this spirit, the United Kingdom (UK) may be poised to do what the EU failed to accomplish in its recently adopted Regulation on deforestation-free products (FW 281) - extend the scope of anti-deforestation due diligence rules to encompass financial services. As a global centre of finance, the UK rules could add a powerful, direct impetus to efforts to protect forests – and offer a practical roadmap for similar EU initiatives.
The House of Lords will soon vote on an amendment to the Financial Services and Markets Bill that could stop financial institutions from knowingly bankrolling companies carrying out deforestation abroad. “We cannot deforest our way to sustainable growth nor a robust financial system”, says Labour’s Lord Tunnicliffe, backing the new law. FERN
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Nigeria-Okomu, Presco, 3 Other Agriculture Companies Generated N35.4bn Profit in 2022
Okomu Oil Palm Plc, Presco Plc lead three other listed agriculture companies on the Nigerian Exchange Limited (NGX) to declare a sum of N35.4billion profit in 2022 financial, representing an increase of 19 per cent from N29.81billion profit reported in 2021 financial year.
However, apart from Okomu Oil Palm and Presco, three other companies listed in the agriculture sector on the bourse announced losses, attributable to weak revenue, hike in cost of sales and poor corporate governance.
The combination of Ellah Lakes Plc, FTN Cocoa Processors Plc and Livestock Feeds Plc announced N2.27billion loss after tax in 2022 as against N1.61billion loss after tax reported in 2021. This Day Live
EU: 20+ leading businesses & networks call for alignment of CSDDD with international standards on sustainability due diligence
n 11 April, more than 20 leading businesses and networks released a joint statement calling for alignment of the EU's Corporate Sustainability Due Diligence Directive (CSDDD) with the international standards of the UN Guiding Principles and the OECD Guidelines for Multinational Enterprises. The group comes from a range of countries and sectors and includes Unilever, Mars, Ingka Group | IKEA, Crédit Mutuel, Aviva Investors, Ericsson, Hapag-Lloyd, Novo Nordisk, the Global Network Initiative (GNI) and others.
Both the proposal published by the European Commission in February 2022 and the position adopted by the European Council in December 2022 depart from the international standards in various ways. Ahead of key votes in the European Parliament (EP)'s Committee on Legal Affairs and the EP plenary, signatories to the statement urge MEPs to adopt a text that is more closely aligned with the UNGPs and OECD Guidelines.
The statement outlines five key points: Business-Humanrights
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Could an EU law to save the rainforest destroy palm oil farmers?
CAREY ISLAND, MALAYSIA – Malaysian palm oil farmer Reta Lajah is one of only a few in her village to be certified green and ethical, after a yearlong journey to join a global initiative that she hopes will help her navigate a new European Union law to curb deforestation.Yet, while Reta’s farm in Sungai Judah village on Carey Island, about 60 kilometers from Kuala Lumpur, will protect wildlife and forests, aim to resolve any land disputes and use green growing methods, there is no guarantee she will be able to sell to Europe’s premium-paying buyers in the future.
Agreed in December and due to take effect within two years, the EU law will force global suppliers of commodities like palm oil, soy and cocoa to prove that their supply chains are not fueling forest destruction.
Green groups warn it could leave many small-scale farmers out in the cold because of requirements for detailed tracing of a product’s source, fire controls and land mapping, which many will struggle to meet with limited resources. Japan Times/ Reuters
-----------
OPINION: Are EU deforestation rules about recolonising the Global South?
The European Union's Deforestation-Free Regulation (or EU-DR) is the new EU tool claimed to address deforestation — by imposing a unilateral rule that obliges companies importing certain goods to certify that such products are not linked to deforestation, after 31 December 2020.
Those targeted products are either in direct competition with the EU's products such as beef, soya, palm oil, and timber products, or not farmed in EU — such as coffee, cocoa, and rubber. The EU-DR has excluded the EU's own degraded and destroyed millions of hectares of peatlands, emitting massive pollution. It is known that rewetting all EU peatland is against EU farming subsidies.
Clearly, the EU-DR is about how to force other nations, especially in the Gobal South, to follow EU rules to protect its own products and is not about real concern of the environment. If it is a genuine concern on the link of farming and environmental degradation, EU drained and degraded peatland should have been included.
The EU unilaterally imposed an obligation of origin-tracing by using geolocation of where the products are farmed. Farmers, including millions of small farmers who own less or around one hectare and living across the Global South should all buy smartphones and geotag their farms to be given, known, processed, verified and inspected by EU officials. Clearly, with no regard of the exporting countries' laws of data privacy. EU Observer
----------
EU Parliament struggles to agree on due diligence rules before key vote
EU lawmakers in the leading legal affairs committee of the European Parliament are expected to vote on their position on the proposed corporate accountability rules towards the end of April, although some key points remain open.
The corporate sustainability due diligence directive was proposed by the European Commission in February 2022 to ensure companies are responsible for human rights and environmental breaches along their value chain.
The proposed legislation would oblige large companies with a turnover of more than €150 million and smaller companies active in risk sectors to identify, prevent, and mitigate human rights abuses and environmental violations in their value chain.
The legal affairs committee, which is leading the Parliament’s work on the file, is expected to vote on its report on 25 April. This would allow the Parliament to finalise its position by the end of May and vote on it during the 31 May – 1 June plenary session, to then quickly enter into negotiations with member state governments in the EU Council.
While member states agreed on their common position regarding the due diligence rules in December 2022, the discussions in Parliament have taken longer than expected due to very divergent positions of political groups.
Ahead of the expected vote on the draft report in the last week of April, there will be a last meeting to solve the contentious points in the week before.
However, according to sources close to the negotiations, it is possible that an agreement will not be found, meaning that the committee vote might need to be postponed. The committee vote was already delayed from March to April.
‘Use of products’
According to documents seen by EURACTIV, EU lawmakers have yet to agree whether due diligence obligations should apply to the downstream use of products or whether they should be restricted to the upstream supply chain of companies. EURACTIV
----------
THE UK MAY INTRODUCE MANDATORY DUE DILIGENCE FOR FINANCING FOREST-RISK SECTORS
There is a danger that misguided investment and financial services could undo advances that have been painstakingly achieved through environmental legislation. In this spirit, the United Kingdom (UK) may be poised to do what the EU failed to accomplish in its recently adopted Regulation on deforestation-free products (FW 281) - extend the scope of anti-deforestation due diligence rules to encompass financial services. As a global centre of finance, the UK rules could add a powerful, direct impetus to efforts to protect forests – and offer a practical roadmap for similar EU initiatives.
The House of Lords will soon vote on an amendment to the Financial Services and Markets Bill that could stop financial institutions from knowingly bankrolling companies carrying out deforestation abroad. “We cannot deforest our way to sustainable growth nor a robust financial system”, says Labour’s Lord Tunnicliffe, backing the new law. FERN
----------
Nigeria-Okomu, Presco, 3 Other Agriculture Companies Generated N35.4bn Profit in 2022
Okomu Oil Palm Plc, Presco Plc lead three other listed agriculture companies on the Nigerian Exchange Limited (NGX) to declare a sum of N35.4billion profit in 2022 financial, representing an increase of 19 per cent from N29.81billion profit reported in 2021 financial year.
However, apart from Okomu Oil Palm and Presco, three other companies listed in the agriculture sector on the bourse announced losses, attributable to weak revenue, hike in cost of sales and poor corporate governance.
The combination of Ellah Lakes Plc, FTN Cocoa Processors Plc and Livestock Feeds Plc announced N2.27billion loss after tax in 2022 as against N1.61billion loss after tax reported in 2021. This Day Live
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April 10, 2023
Indonesia to propose limited free trade deal with US on critical minerals
JAKARTA, April 10 (Reuters) - Indonesia will propose a free trade agreement for some minerals shipped to the United States so that companies in the electric vehicle battery supply chain operating in the country can benefit from U.S. tax credits, a senior minister said on Monday.
Washington has issued a new guidance for EV tax credits under the Inflation Reduction Act (IRA), requiring a certain value of battery components to be produced or assembled in North America or a free trade partner. The rules are aimed at weaning the United States off dependence on China for the development of its EV battery supply chain.
Indonesia does not have a free trade agreement with the United States, but its nickel products have increasingly become important in the supply chain.
The Southeast Asian country has been trying to leverage its nickel reserves, the world's biggest, to attract investment from battery and EV makers, including U.S. companies such as Tesla and Ford.
Asked about the new IRA guidelines, Indonesian minister Luhut Pandjaitan, who has been spearheading efforts to attract U.S. companies, told a news conference Jakarta will propose a limited free trade agreement (FTA) with Washington. Reuters
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Indonesian Minister calls to expedite completion of IEU-CEPA negotiations
Jakarta (ANTARA) - Coordinating Minister for Economic Affairs Airlangga Hartarto stated that substantial completion of the Indonesia-European Union Comprehensive Partnership Agreement (IEU-CEPA) should be expedited to utilize the economic cooperation potential between the two parties.
During President Joko Widodo's meeting in the European Union, the government had already targeted to complete the IEU-CEPA negotiations this year, he stated during the EuroChamp Position Papers 2023 unveiling, as quoted from a statement, Thursday.
Indonesia is currently establishing economic relations with countries in Europe through participation in the international exhibition Hannover Messe in Germany.
The minister noted that within the last three years, Indonesia had managed to become a partner country in Hannover Messe twice. This is Indonesia's commitment to continue to participate in the European Union market, he noted.
In addition to discussing Indonesia's commitment to establishing sound relations with trade partner countries in Europe, during the event, Hartarto also outlined strategies implemented by the government to maintain quality economic growth.
The government implements flexible, responsive, and accommodative fiscal and monetary policy mix as well as encourages consumption and investment.
The government continues to encourage investment in Indonesia through structural reformation and several other policies.
These include the formation of a special economic zone (KEK) to optimize industrial, export, and import activities as well as other activities with high economic value. Antara News
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UK-Ignore the doomsayers Rishi's deal is a triumph, says JOHN LONGWORTH
The CPTPP deal is really about geostrategic positioning: that is why the eminent voices from around the world - including Brussels' former top trade official - are impressed.
Entrepreneurs are risk-takers by nature, and optimists by necessity. Talking yourself down makes no sense, and has no value. In my journey from the world of business to politics, I have found that Westminster operates on the opposite principle. Naysayers are everywhere: in Parliament, in the commentariat, in the endless white noise created by New Labour-era Quango-land. Talking the country down has become an SW1 not to mention a W1A obsession, especially in recent years.
Rishi Sunak and certainly his estimable Trade Secretary, Kemi Badenoch may have just worked out how to cut through all of that, to tap into a sense of optimism and strategic vision that the country desperately needs to hear. Express UK
Indonesia to propose limited free trade deal with US on critical minerals
JAKARTA, April 10 (Reuters) - Indonesia will propose a free trade agreement for some minerals shipped to the United States so that companies in the electric vehicle battery supply chain operating in the country can benefit from U.S. tax credits, a senior minister said on Monday.
Washington has issued a new guidance for EV tax credits under the Inflation Reduction Act (IRA), requiring a certain value of battery components to be produced or assembled in North America or a free trade partner. The rules are aimed at weaning the United States off dependence on China for the development of its EV battery supply chain.
Indonesia does not have a free trade agreement with the United States, but its nickel products have increasingly become important in the supply chain.
The Southeast Asian country has been trying to leverage its nickel reserves, the world's biggest, to attract investment from battery and EV makers, including U.S. companies such as Tesla and Ford.
Asked about the new IRA guidelines, Indonesian minister Luhut Pandjaitan, who has been spearheading efforts to attract U.S. companies, told a news conference Jakarta will propose a limited free trade agreement (FTA) with Washington. Reuters
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Indonesian Minister calls to expedite completion of IEU-CEPA negotiations
Jakarta (ANTARA) - Coordinating Minister for Economic Affairs Airlangga Hartarto stated that substantial completion of the Indonesia-European Union Comprehensive Partnership Agreement (IEU-CEPA) should be expedited to utilize the economic cooperation potential between the two parties.
During President Joko Widodo's meeting in the European Union, the government had already targeted to complete the IEU-CEPA negotiations this year, he stated during the EuroChamp Position Papers 2023 unveiling, as quoted from a statement, Thursday.
Indonesia is currently establishing economic relations with countries in Europe through participation in the international exhibition Hannover Messe in Germany.
The minister noted that within the last three years, Indonesia had managed to become a partner country in Hannover Messe twice. This is Indonesia's commitment to continue to participate in the European Union market, he noted.
In addition to discussing Indonesia's commitment to establishing sound relations with trade partner countries in Europe, during the event, Hartarto also outlined strategies implemented by the government to maintain quality economic growth.
The government implements flexible, responsive, and accommodative fiscal and monetary policy mix as well as encourages consumption and investment.
The government continues to encourage investment in Indonesia through structural reformation and several other policies.
These include the formation of a special economic zone (KEK) to optimize industrial, export, and import activities as well as other activities with high economic value. Antara News
----------
UK-Ignore the doomsayers Rishi's deal is a triumph, says JOHN LONGWORTH
The CPTPP deal is really about geostrategic positioning: that is why the eminent voices from around the world - including Brussels' former top trade official - are impressed.
Entrepreneurs are risk-takers by nature, and optimists by necessity. Talking yourself down makes no sense, and has no value. In my journey from the world of business to politics, I have found that Westminster operates on the opposite principle. Naysayers are everywhere: in Parliament, in the commentariat, in the endless white noise created by New Labour-era Quango-land. Talking the country down has become an SW1 not to mention a W1A obsession, especially in recent years.
Rishi Sunak and certainly his estimable Trade Secretary, Kemi Badenoch may have just worked out how to cut through all of that, to tap into a sense of optimism and strategic vision that the country desperately needs to hear. Express UK
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April 09, 2023
Nigeria-Missed Opportunities in Oil Palm Puts Pressure on Forex Market
Outsourcing palm oil supply for domestic consumption in a nation like Nigeria which once controlled 40 per cent of the global supply comes with serious pressure on foreign exchange reserves and local initiatives, writes Festus Akanbi
Nothing better explains the precariousness of Nigeria’s export earning potential in recent times than a media report on the rising importation of palm oil despite the foreign exchange restrictions placed on importers of the commodity by the Central Bank of Nigeria (CBN) since 2015.
Ordinarily, Nigeria cannot be said to be doing badly in terms of total merchandise trade as figures for the National Bureau of Statistics for 2022 showed an acceleration in total merchandise trade to N52.4 trillion from N39.75 trillion in 2021.
However, analysts argued that the modest gain recorded in 2022 would have paled into insignificance if Nigeria was able to realise its full potential in some sectors of the economy instead of rationing the limited amount of foreign exchange on imported goods and services.
According to them, one of these low-hanging fruits which have not been given the desired priority is palm oil production. They explained that given the decision of the apex bank to list the commodity among items restricted from the official foreign exchange market, the government and other stakeholders in the agricultural sector should have explored ways to boost palm oil production to meet foreign and local demands.
Palm Oil Importation
Today, Nigeria is not only found wanting in the area of palm oil export, which could have fetched the country huge forex exchange, but it is also finding it difficult to meet local demands. This Day Live
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Pakistan-Increase local production of edible oil: experts
Country’s annual import of edible oil stands at a staggering $4 billion
KARACHI: Pakistan’s agriculture sector is in urgent need of attention from the government to boost the local production of edible oil. The country’s annual import of edible oil stands at a staggering $4 billion, causing a significant drain on the country’s economy.
Experts suggest that the coastal areas of Sindh have high potential for the production of palm, sesame, and canola oils, but it is imperative that the government takes swift action to increase production and reduce reliance on imports.
Former Vice Chairman of Pakistan Vanaspati Manufacturers Association (PVMA), Sheikh Umer Rehan, called for urgent action to increase the production of edible oil and seeds in the country.
Due to the State Bank of Pakistan’s (SBP) decision to curb Letters of Credit (LCs) and the shortage of foreign exchange, the price of edible oil in the country has been steadily rising, making it increasingly difficult for the people to procure the commodity, noted Rehan.
Speaking to The Express Tribune, President of Concave Agri Services Muhammad Ali Iqbal said, “The biggest challenge is the will of the government.”
Iqbal also emphasised the need for standardised approaches for the cultivation of different edible oil plant varieties. TribunePK
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Papua New Guina-Oil Palm Continues Progress
The Oil Palm industry since its inception in the country in the 1960’s has grown from strength to
strength.
This has expanded from West New Britain to New Ireland, Oro and Milne Bay provinces and now extends into Madang, Morobe, West Sepik, East Sepik and East New Britain.
The Farmers and Settlers Association in a circular stated that in a recent statistics for oil palm since the enactment of the Oil Palm Industry Corporation Act, 1992 has shown a steady increase in production and exports of crude palm oil.
FSA president, Wilson Thompson, commended the Oil Palm Industry Corporation (OPIC) for the extension and training services including infrastructure (roads and bridges) in oil palm growing districts and applaud the OPIC that has statistics for production per province that is something missing from other commodity boards.
He praised companies such as Hargy Plantations and New Britain Palm Oil that are engaged in the plantations and buying and processing.
“We also note value adding in oil palm by processing kennels for the cattle industry, cooking oil and starch for food processing industry and this will assist the government import substitution policy,” Thompson stated.
Fresh Fruit Bunch that is produced by smallholders continues to increase from 2019,2020 to 2021 is 769,831 metric tonnes and in 2022 increased to 819,356 tonnes. Income for farmers grew from K405 million in 2020, to K760 million in 2021 and increased to almost a billion (K964 million ) in 2022.
The smallholder farmers in WNBP, Oro, New Ireland and Milne Bay is supported by the estates and buyers that processes into Crude Palm Oil for exports. Crude Palm Oil increased in volume in 558 metric tonnes in 2020, 649 metric tonnes in 2021 that increased to 678 metric tonnes that generated K1.3 billion in 2020, K2.7 billion in 2021 and K2.8 billion in 2022 rounding the year on the increase across the whole agriculture sector.
The Association commends all stakeholders in the oil palm industry and notes that the oil palm has moved from the traditional oil palm provinces to East and West Sepik , ENBP, Morobe and Madang that needs to be addressed in totality.
Meantime, Thompson is concerned that there is insufficient marketplace for smallholders to sell their fresh fruit bunch as there are no mills; and further the Oil Palm Industry Corporation Act or OPIC Act, 1992 needs to be reviewed as it was a legislation that was established to cater for training and extension services for smallholders that supplied the estates in the oil palm growing provinces.
“The Oil Palm industry has been targeted by international groups and we must be careful in PNG to protect and promote our industry which is now supporting cattle, food processing and also cooking oil for our people,” said Thompson.
He stated that the crop has gone to the smallholders and OPIC must also address smallholder concerns that is affecting other commodity crops such as shortage of seeds and seedlings and incursion of pests and diseases.
The FSA supports the oil palm industry for creating thousands of employment directly and also in the associated industries and also in other sectors of the economy. “Apart from oil palm, we support the NBPOL for maintaining the cattle industry and for providing beef to the country. And this is one area where the government can support via feedlot using oil palm kennel and molasses from sugar to address import substitution for beef imports.” Loop PNG
Nigeria-Missed Opportunities in Oil Palm Puts Pressure on Forex Market
Outsourcing palm oil supply for domestic consumption in a nation like Nigeria which once controlled 40 per cent of the global supply comes with serious pressure on foreign exchange reserves and local initiatives, writes Festus Akanbi
Nothing better explains the precariousness of Nigeria’s export earning potential in recent times than a media report on the rising importation of palm oil despite the foreign exchange restrictions placed on importers of the commodity by the Central Bank of Nigeria (CBN) since 2015.
Ordinarily, Nigeria cannot be said to be doing badly in terms of total merchandise trade as figures for the National Bureau of Statistics for 2022 showed an acceleration in total merchandise trade to N52.4 trillion from N39.75 trillion in 2021.
However, analysts argued that the modest gain recorded in 2022 would have paled into insignificance if Nigeria was able to realise its full potential in some sectors of the economy instead of rationing the limited amount of foreign exchange on imported goods and services.
According to them, one of these low-hanging fruits which have not been given the desired priority is palm oil production. They explained that given the decision of the apex bank to list the commodity among items restricted from the official foreign exchange market, the government and other stakeholders in the agricultural sector should have explored ways to boost palm oil production to meet foreign and local demands.
Palm Oil Importation
Today, Nigeria is not only found wanting in the area of palm oil export, which could have fetched the country huge forex exchange, but it is also finding it difficult to meet local demands. This Day Live
----------
Pakistan-Increase local production of edible oil: experts
Country’s annual import of edible oil stands at a staggering $4 billion
KARACHI: Pakistan’s agriculture sector is in urgent need of attention from the government to boost the local production of edible oil. The country’s annual import of edible oil stands at a staggering $4 billion, causing a significant drain on the country’s economy.
Experts suggest that the coastal areas of Sindh have high potential for the production of palm, sesame, and canola oils, but it is imperative that the government takes swift action to increase production and reduce reliance on imports.
Former Vice Chairman of Pakistan Vanaspati Manufacturers Association (PVMA), Sheikh Umer Rehan, called for urgent action to increase the production of edible oil and seeds in the country.
Due to the State Bank of Pakistan’s (SBP) decision to curb Letters of Credit (LCs) and the shortage of foreign exchange, the price of edible oil in the country has been steadily rising, making it increasingly difficult for the people to procure the commodity, noted Rehan.
Speaking to The Express Tribune, President of Concave Agri Services Muhammad Ali Iqbal said, “The biggest challenge is the will of the government.”
Iqbal also emphasised the need for standardised approaches for the cultivation of different edible oil plant varieties. TribunePK
----------
Papua New Guina-Oil Palm Continues Progress
The Oil Palm industry since its inception in the country in the 1960’s has grown from strength to
strength.
This has expanded from West New Britain to New Ireland, Oro and Milne Bay provinces and now extends into Madang, Morobe, West Sepik, East Sepik and East New Britain.
The Farmers and Settlers Association in a circular stated that in a recent statistics for oil palm since the enactment of the Oil Palm Industry Corporation Act, 1992 has shown a steady increase in production and exports of crude palm oil.
FSA president, Wilson Thompson, commended the Oil Palm Industry Corporation (OPIC) for the extension and training services including infrastructure (roads and bridges) in oil palm growing districts and applaud the OPIC that has statistics for production per province that is something missing from other commodity boards.
He praised companies such as Hargy Plantations and New Britain Palm Oil that are engaged in the plantations and buying and processing.
“We also note value adding in oil palm by processing kennels for the cattle industry, cooking oil and starch for food processing industry and this will assist the government import substitution policy,” Thompson stated.
Fresh Fruit Bunch that is produced by smallholders continues to increase from 2019,2020 to 2021 is 769,831 metric tonnes and in 2022 increased to 819,356 tonnes. Income for farmers grew from K405 million in 2020, to K760 million in 2021 and increased to almost a billion (K964 million ) in 2022.
The smallholder farmers in WNBP, Oro, New Ireland and Milne Bay is supported by the estates and buyers that processes into Crude Palm Oil for exports. Crude Palm Oil increased in volume in 558 metric tonnes in 2020, 649 metric tonnes in 2021 that increased to 678 metric tonnes that generated K1.3 billion in 2020, K2.7 billion in 2021 and K2.8 billion in 2022 rounding the year on the increase across the whole agriculture sector.
The Association commends all stakeholders in the oil palm industry and notes that the oil palm has moved from the traditional oil palm provinces to East and West Sepik , ENBP, Morobe and Madang that needs to be addressed in totality.
Meantime, Thompson is concerned that there is insufficient marketplace for smallholders to sell their fresh fruit bunch as there are no mills; and further the Oil Palm Industry Corporation Act or OPIC Act, 1992 needs to be reviewed as it was a legislation that was established to cater for training and extension services for smallholders that supplied the estates in the oil palm growing provinces.
“The Oil Palm industry has been targeted by international groups and we must be careful in PNG to protect and promote our industry which is now supporting cattle, food processing and also cooking oil for our people,” said Thompson.
He stated that the crop has gone to the smallholders and OPIC must also address smallholder concerns that is affecting other commodity crops such as shortage of seeds and seedlings and incursion of pests and diseases.
The FSA supports the oil palm industry for creating thousands of employment directly and also in the associated industries and also in other sectors of the economy. “Apart from oil palm, we support the NBPOL for maintaining the cattle industry and for providing beef to the country. And this is one area where the government can support via feedlot using oil palm kennel and molasses from sugar to address import substitution for beef imports.” Loop PNG
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April 08, 2023
Malaysia-Proving oil palm plantations are sustainable
THE palm oil industry has always received much flak for its role in deforestation around the world.
The oil palm fruit yields a high-quality oil that has become the preferred cooking oil in developing countries.
And while it is not the cooking oil of choice in developed nations, it is however heavily used to manufacture packaged products, such as lipsticks, soaps, detergents and even confectionaries, to name a few.
As it is cheaply produced and offers a greater yield at a lower cost of production, compared to other vegetable oils, it has become a popular crop in many developing tropical countries.
That is where misconceptions of deforestation stem and questions on its sustainability surface.
Domestically, to show that palm oil is indeed sustainable and to improve the image of the industry, the Malaysian government established the Malaysian Palm Oil Wildlife Conservation Fund (MPOWCF) in 2006 that was managed by the Malaysian Palm Oil Council (MPOC). The StarMY
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Palm Oil Cultivation Is Destroying Forests. There’s No Easy Fix
(Bloomberg) -- There’s a lot of damage being done to the planet in the name of food, but humans have long resisted the lessons of nature and strategies that may help turn the tide. Why can’t we grow food sustainably when the path to doing so is clear? Why has plant-based meat failed to take hold, enabling us to ditch environmentally destructive farming practices?
In this episode of the Bloomberg Originals series Getting Warmer With Kal Penn, Penn heads to Indonesia to investigate solutions to the problem of palm oil. It’s used in everything from cookies and ice cream to shampoo and even fuel, but its cultivation is a major driver of deforestation. What’s standing in the way of scaling sustainable farming practices? In the UK, Penn visits a startup with a more comprehensive solution: its scientists have created a palm oil substitute in the laboratory. But can it compete with nature in quality and price? Bloomberg
Malaysia-Proving oil palm plantations are sustainable
THE palm oil industry has always received much flak for its role in deforestation around the world.
The oil palm fruit yields a high-quality oil that has become the preferred cooking oil in developing countries.
And while it is not the cooking oil of choice in developed nations, it is however heavily used to manufacture packaged products, such as lipsticks, soaps, detergents and even confectionaries, to name a few.
As it is cheaply produced and offers a greater yield at a lower cost of production, compared to other vegetable oils, it has become a popular crop in many developing tropical countries.
That is where misconceptions of deforestation stem and questions on its sustainability surface.
Domestically, to show that palm oil is indeed sustainable and to improve the image of the industry, the Malaysian government established the Malaysian Palm Oil Wildlife Conservation Fund (MPOWCF) in 2006 that was managed by the Malaysian Palm Oil Council (MPOC). The StarMY
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Palm Oil Cultivation Is Destroying Forests. There’s No Easy Fix
(Bloomberg) -- There’s a lot of damage being done to the planet in the name of food, but humans have long resisted the lessons of nature and strategies that may help turn the tide. Why can’t we grow food sustainably when the path to doing so is clear? Why has plant-based meat failed to take hold, enabling us to ditch environmentally destructive farming practices?
In this episode of the Bloomberg Originals series Getting Warmer With Kal Penn, Penn heads to Indonesia to investigate solutions to the problem of palm oil. It’s used in everything from cookies and ice cream to shampoo and even fuel, but its cultivation is a major driver of deforestation. What’s standing in the way of scaling sustainable farming practices? In the UK, Penn visits a startup with a more comprehensive solution: its scientists have created a palm oil substitute in the laboratory. But can it compete with nature in quality and price? Bloomberg
April 07, 2023
How Indonesia Tamed Rainforest Destruction
Deforestation for palm oil production has shrunk Indonesia's rainforest, the third largest in the world and one of the most ecologically diverse places on the planet. But recently, the country has found a way to tame deforestation. WSJ's Jon Emont explains how government orders, consumer boycotts and environmental activism have helped slow the destruction of Indonesia's rainforest.
Further reading:
- Indonesia Shows It’s Possible to Tame Rainforest Destruction
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How Malaysia and China are trialling AI to secure palm oil supplies
The Malaysian Palm Oil Board signed a memorandum of understanding (MoU) with a Chinese government-backed trade association to encourage cooperation in the palm oil trade and ensure “supply chain stabilisation”.
"China wishes to work with Malaysia in order to secure the palm oil supply to the country," the Malaysian board said in a statement. It said the cooperation plan "will help gain China’s confidence towards Malaysian palm oil", according to Malaysian state news agency Bernama.
The statement also said that the two associations "shall facilitate China's participation in the technology exploration in the oil palm mechanisation in Malaysia, which will help to increase productivity and reduce reliance on human labour on the plantation.”
Technologies such as AI and IoT could make a particular difference in the palm oil industry, not only by increasing yields, but also by improving sustainability. CIPS
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The UK will not be over supplied with Malaysian palm oil: Grain market daily
The UK will not be over supplied with Malaysian palm oil
As outlined last week, there is an agreement in principle for the UK to join the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP). As one of the largest free trade agreements in the world, it facilitates trade between members by harmonising regulations and reducing tariffs, full information and an overview of this agreement can be read in this article here.
There has been some press coverage in recent days suggesting that palm oil will see a change in trade patterns, so we have reviewed the evidence to counter this view. The new deal is unlikely to see a change in trade patterns. Nine out of the eleven other members in this trading block already have an existing trade deal with the UK, apart from Malaysia and Brunei.
So, the main implication of joining this block for the UK oilseed market will be dropping the (up to) 12% tariff that is applied to palm oil imports. With Malaysia being the second largest global producer and exporter of palm oil, after only Indonesia, will this really change things domestically? AHDB
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Analysis: Indonesia must jump ethanol feedstock hurdle to repeat biodiesel success
JAKARTA, April 6 (Reuters) - Indonesia, the world's biggest palm oil biodiesel user, is now working to introduce bioethanol mandates for gasoline to further cut fuel imports and carbon emissions, but it will first have to secure more bio feedstock and solve thorny technical problems.
Indonesia imported about 60% of the gasoline it burned last year at a cost of $17 billion, and it aims to replicate the success it had with biodiesel mandates that cut billions of dollars from diesel import bills.
While much of Indonesia's emissions reductions will come from forest management and shutting coal-fired power plants, it also expects significant cuts from burning edible oil and hydrogen fuels and greater use of electric vehicles. Reuters
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Indonesia-Minister calls to expedite completion of IEU-CEPA negotiations
Jakarta (ANTARA) - Coordinating Minister for Economic Affairs Airlangga Hartarto stated that substantial completion of the Indonesia-European Union Comprehensive Partnership Agreement (IEU-CEPA) should be expedited to utilize the economic cooperation potential between the two parties.
During President Joko Widodo's meeting in the European Union, the government had already targeted to complete the IEU-CEPA negotiations this year, he stated during the EuroChamp Position Papers 2023 unveiling, as quoted from a statement, Thursday.
Indonesia is currently establishing economic relations with countries in Europe through participation in the international exhibition Hannover Messe in Germany.
The minister noted that within the last three years, Indonesia had managed to become a partner country in Hannover Messe twice. This is Indonesia's commitment to continue to participate in the European Union market, he noted.
In addition to discussing Indonesia's commitment to establishing sound relations with trade partner countries in Europe, during the event, Hartarto also outlined strategies implemented by the government to maintain quality economic growth. Antara News
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MPOC Europe Alert No. 23
The Council of the EU and the European Parliament reach provisional agreement on the Revision of the EU’s Renewable Energy Directive (RED III)
On 30 March 2023, the Council of the EU and the European Parliament reached provisional agreement on the revision of the EU’s Renewable Energy Directive (RED III). Most notably, the RED III will increase the target share of renewable energy in the EU’s overall energy consumption to 42.5% by 2030. The provisional text still needs to be officially adopted by the Council of the EU and the European Parliament before it can enter into force.
With respect to transport, the provisional agreement provides the possibility for an EU Member State to choose between a binding target of 14.5% reduction of greenhouse gas (GHG) intensity in transport, through the use of renewables by 2030, or a binding target of at least 29% share of renewables within the final consumption of energy in the transport sector by 2030.
In addition, the provisional agreement sets a binding combined sub-target of 5.5% for advanced biofuels (generally derived from non-food-based feedstocks) and renewable fuels of non-biological origin (mostly renewable hydrogen and hydrogen-based synthetic fuels) in the share of renewable energies supplied to the transport sector.
Importantly, the amendments that had been proposed by the European Parliament regarding changes to the EU’s policy aimed at addressing indirect land-use change (ILUC) and the concept of high ILUC-risk, together with the related phase out of high ILUC-risk biofuel feedstocks, notably advancing the 2030 phase out to the (earlier) date of entry into force of the RED III, were not adopted due to opposition from EU Member States within the Council of the EU.
Additionally, the European Parliament had proposed that the threshold for high ILUC-risk biofuels be decreased to also cover soyabean crop-based biofuel feedstocks, but this is also not part of the agreement reached with the Council of the EU. Therefore, soyabean crop-based biofuels will remain below the threshold and, unlike oil palm crop-based biofuel feedstocks, will continue to be able to be counted towards the EU’s renewable energy targets. However, the agreement does open the door for a further review of the criteria on high ILUC-risk in order to assess the negative impacts of certain crops, including soya, in the future.
Possible actions: The provisional agreement between EU Institutions shows once more the EU’s effective discrimination against sustainable oil palm crop-based biofuels, but it is good news that the phase out date has not been advanced and remains scheduled for 2030. Malaysia should continue engaging with the European Commission and with key EU Member States to ensure that sustainable palm oil be part of the world’s and of the EU’s ‘green’ transition.
How Indonesia Tamed Rainforest Destruction
Deforestation for palm oil production has shrunk Indonesia's rainforest, the third largest in the world and one of the most ecologically diverse places on the planet. But recently, the country has found a way to tame deforestation. WSJ's Jon Emont explains how government orders, consumer boycotts and environmental activism have helped slow the destruction of Indonesia's rainforest.
Further reading:
- Indonesia Shows It’s Possible to Tame Rainforest Destruction
----------
How Malaysia and China are trialling AI to secure palm oil supplies
The Malaysian Palm Oil Board signed a memorandum of understanding (MoU) with a Chinese government-backed trade association to encourage cooperation in the palm oil trade and ensure “supply chain stabilisation”.
"China wishes to work with Malaysia in order to secure the palm oil supply to the country," the Malaysian board said in a statement. It said the cooperation plan "will help gain China’s confidence towards Malaysian palm oil", according to Malaysian state news agency Bernama.
The statement also said that the two associations "shall facilitate China's participation in the technology exploration in the oil palm mechanisation in Malaysia, which will help to increase productivity and reduce reliance on human labour on the plantation.”
Technologies such as AI and IoT could make a particular difference in the palm oil industry, not only by increasing yields, but also by improving sustainability. CIPS
-----------
The UK will not be over supplied with Malaysian palm oil: Grain market daily
The UK will not be over supplied with Malaysian palm oil
As outlined last week, there is an agreement in principle for the UK to join the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP). As one of the largest free trade agreements in the world, it facilitates trade between members by harmonising regulations and reducing tariffs, full information and an overview of this agreement can be read in this article here.
There has been some press coverage in recent days suggesting that palm oil will see a change in trade patterns, so we have reviewed the evidence to counter this view. The new deal is unlikely to see a change in trade patterns. Nine out of the eleven other members in this trading block already have an existing trade deal with the UK, apart from Malaysia and Brunei.
So, the main implication of joining this block for the UK oilseed market will be dropping the (up to) 12% tariff that is applied to palm oil imports. With Malaysia being the second largest global producer and exporter of palm oil, after only Indonesia, will this really change things domestically? AHDB
----------
Analysis: Indonesia must jump ethanol feedstock hurdle to repeat biodiesel success
JAKARTA, April 6 (Reuters) - Indonesia, the world's biggest palm oil biodiesel user, is now working to introduce bioethanol mandates for gasoline to further cut fuel imports and carbon emissions, but it will first have to secure more bio feedstock and solve thorny technical problems.
Indonesia imported about 60% of the gasoline it burned last year at a cost of $17 billion, and it aims to replicate the success it had with biodiesel mandates that cut billions of dollars from diesel import bills.
While much of Indonesia's emissions reductions will come from forest management and shutting coal-fired power plants, it also expects significant cuts from burning edible oil and hydrogen fuels and greater use of electric vehicles. Reuters
-----------
Indonesia-Minister calls to expedite completion of IEU-CEPA negotiations
Jakarta (ANTARA) - Coordinating Minister for Economic Affairs Airlangga Hartarto stated that substantial completion of the Indonesia-European Union Comprehensive Partnership Agreement (IEU-CEPA) should be expedited to utilize the economic cooperation potential between the two parties.
During President Joko Widodo's meeting in the European Union, the government had already targeted to complete the IEU-CEPA negotiations this year, he stated during the EuroChamp Position Papers 2023 unveiling, as quoted from a statement, Thursday.
Indonesia is currently establishing economic relations with countries in Europe through participation in the international exhibition Hannover Messe in Germany.
The minister noted that within the last three years, Indonesia had managed to become a partner country in Hannover Messe twice. This is Indonesia's commitment to continue to participate in the European Union market, he noted.
In addition to discussing Indonesia's commitment to establishing sound relations with trade partner countries in Europe, during the event, Hartarto also outlined strategies implemented by the government to maintain quality economic growth. Antara News
-----------
MPOC Europe Alert No. 23
The Council of the EU and the European Parliament reach provisional agreement on the Revision of the EU’s Renewable Energy Directive (RED III)
On 30 March 2023, the Council of the EU and the European Parliament reached provisional agreement on the revision of the EU’s Renewable Energy Directive (RED III). Most notably, the RED III will increase the target share of renewable energy in the EU’s overall energy consumption to 42.5% by 2030. The provisional text still needs to be officially adopted by the Council of the EU and the European Parliament before it can enter into force.
With respect to transport, the provisional agreement provides the possibility for an EU Member State to choose between a binding target of 14.5% reduction of greenhouse gas (GHG) intensity in transport, through the use of renewables by 2030, or a binding target of at least 29% share of renewables within the final consumption of energy in the transport sector by 2030.
In addition, the provisional agreement sets a binding combined sub-target of 5.5% for advanced biofuels (generally derived from non-food-based feedstocks) and renewable fuels of non-biological origin (mostly renewable hydrogen and hydrogen-based synthetic fuels) in the share of renewable energies supplied to the transport sector.
Importantly, the amendments that had been proposed by the European Parliament regarding changes to the EU’s policy aimed at addressing indirect land-use change (ILUC) and the concept of high ILUC-risk, together with the related phase out of high ILUC-risk biofuel feedstocks, notably advancing the 2030 phase out to the (earlier) date of entry into force of the RED III, were not adopted due to opposition from EU Member States within the Council of the EU.
Additionally, the European Parliament had proposed that the threshold for high ILUC-risk biofuels be decreased to also cover soyabean crop-based biofuel feedstocks, but this is also not part of the agreement reached with the Council of the EU. Therefore, soyabean crop-based biofuels will remain below the threshold and, unlike oil palm crop-based biofuel feedstocks, will continue to be able to be counted towards the EU’s renewable energy targets. However, the agreement does open the door for a further review of the criteria on high ILUC-risk in order to assess the negative impacts of certain crops, including soya, in the future.
Possible actions: The provisional agreement between EU Institutions shows once more the EU’s effective discrimination against sustainable oil palm crop-based biofuels, but it is good news that the phase out date has not been advanced and remains scheduled for 2030. Malaysia should continue engaging with the European Commission and with key EU Member States to ensure that sustainable palm oil be part of the world’s and of the EU’s ‘green’ transition.
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April 05, 2023
Malaysia secures $555 million potential exports during PM's China visit
KUALA LUMPUR, April 5 (Reuters) - Malaysia secured 2.44 billion ringgit ($555.30 million) in potential exports during Prime Minister Anwar Ibrahim's visit to China last week, a government trade agency said on Wednesday.
The products Chinese importers were interested to source from Malaysia included palm oil, food and beverages, durian and iron products, the Malaysian External Trade Development Corporation (MATRADE) said in a statement.
China is Malaysia's largest trading partner.
Malaysia's exports to China totaled nearly $48 billion last year, though it declined 9.1% in the first two months of 2023, MATRADE said.
During his visit, Anwar witnessed the signing of trade agreements between Malaysian and Chinese businesses, it added.
China will invest an estimated $38.6 billion in Malaysia, including in the petrochemical and automotive industries, Anwar told parliament earlier this week, without specifying a timeframe. Reuters
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April 04, 2023
RED III trilogue deal maintains role of sustainable biodiesel in EU climate objectives
Brussels, 3 April 2023: on 30 March, EU negotiators reached a deal on the revision of the EU Renewable Energy Directive (RED III). The deal includes a strong 42.5% renewables target for 2030 (+2.5% aspirational), coupled with a 14.5% GHG emission reduction target for transport, increasing EU’ decarbonization ambitions.
The European Biodiesel Board (EBB), gathering European producers of sustainable biodiesel (FAME & HVO) from agricultural feedstocks, wastes & residues, welcomes the outcome of the RED III trilogue. While we still need to analyse the text’s fine print, we can already recognize the significance of the higher overall renewables target, which represents an important signal to the market, and will foster additional investments in the sector.
Moreover, the higher ambition for the transport sector, with a 14.5% GHG intensity reduction target (up from the initially proposed 13%), is a greatly needed but realistic target which will require all sustainable renewable energy sources to contribute.
To deliver on these ambitious targets, we are also pleased that the cap on crop-based biofuels is maintained at 2020 consumption level (with a max of 7%), and the framework for crops remains stable until 2030. As the first renewable energy source in transport in 2020, biodiesel will be instrumental in delivering the 2030 objectives. Regarding waste and residues, the continuation of double counting for Annex IX-B feedstocks also recognizes the key role these raw materials have in today’s EU decarbonisation efforts. EBB
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Malaysia and China signs partnership to stabilize palm oil supply chain
Malaysia said on Sunday, April 2, that the country has signed a memorandum of understanding with a Chinese government-backed trade association to enhance palm oil trade and cooperation.
The Malaysian Palm Oil Board said the partnership will help Malaysia regain market share in the country.
Malaysia, the world’s second-largest palm producer, and China, the world’s second-largest buyer, will together promote the use of Malaysia’s sustainable palm oil. A part of the cooperation is to design and implement new technologies such as artificial intelligence in palm plantations.
“China wishes to work with Malaysia in order to secure the palm oil supply to the country,” the Malaysian board said in a statement.
“The agreement will also facilitate China’s participation on the technology exploration in the mechanization in Malaysia. This will help to increase productivity and reduce reliance on human labor in plantations,” the statement said.
In 2022, Malaysia exported 3.14 million tons of palm oil and palm products to China, making China its most important trading partner for palm oil after India. Scandasia
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Nigeria-Despite Dollar Restriction: Nigeria Imports N300bn Palm Oil In Six Years
Despite featuring prominently on a June 2015 list of import item not valid for forex by the Central Bank of Nigeria (CBN), Nigeria imported at least N299.6bn of palm oil from 2017 to 2022, an analysis of Nigeria’s Foreign Trade by Daily Trust has revealed.
The reports, which are released quarterly by the National Bureau of Statistics (NBS) indicate that the product itemed ‘Palm Crude Oil’ is often among the top five imported agricultural products into the country.
The oil palm tree produces high-quality oil used primarily for cooking in developing countries. It is also used in food products, detergents, cosmetics and, to a small extent, biofuel.
According to the governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, Nigeria imported 302,000 metric tons in 2017 despite placing the product in the forex exclusion list. Daily TrustNG
Malaysia secures $555 million potential exports during PM's China visit
KUALA LUMPUR, April 5 (Reuters) - Malaysia secured 2.44 billion ringgit ($555.30 million) in potential exports during Prime Minister Anwar Ibrahim's visit to China last week, a government trade agency said on Wednesday.
The products Chinese importers were interested to source from Malaysia included palm oil, food and beverages, durian and iron products, the Malaysian External Trade Development Corporation (MATRADE) said in a statement.
China is Malaysia's largest trading partner.
Malaysia's exports to China totaled nearly $48 billion last year, though it declined 9.1% in the first two months of 2023, MATRADE said.
During his visit, Anwar witnessed the signing of trade agreements between Malaysian and Chinese businesses, it added.
China will invest an estimated $38.6 billion in Malaysia, including in the petrochemical and automotive industries, Anwar told parliament earlier this week, without specifying a timeframe. Reuters
----------
April 04, 2023
RED III trilogue deal maintains role of sustainable biodiesel in EU climate objectives
Brussels, 3 April 2023: on 30 March, EU negotiators reached a deal on the revision of the EU Renewable Energy Directive (RED III). The deal includes a strong 42.5% renewables target for 2030 (+2.5% aspirational), coupled with a 14.5% GHG emission reduction target for transport, increasing EU’ decarbonization ambitions.
The European Biodiesel Board (EBB), gathering European producers of sustainable biodiesel (FAME & HVO) from agricultural feedstocks, wastes & residues, welcomes the outcome of the RED III trilogue. While we still need to analyse the text’s fine print, we can already recognize the significance of the higher overall renewables target, which represents an important signal to the market, and will foster additional investments in the sector.
Moreover, the higher ambition for the transport sector, with a 14.5% GHG intensity reduction target (up from the initially proposed 13%), is a greatly needed but realistic target which will require all sustainable renewable energy sources to contribute.
To deliver on these ambitious targets, we are also pleased that the cap on crop-based biofuels is maintained at 2020 consumption level (with a max of 7%), and the framework for crops remains stable until 2030. As the first renewable energy source in transport in 2020, biodiesel will be instrumental in delivering the 2030 objectives. Regarding waste and residues, the continuation of double counting for Annex IX-B feedstocks also recognizes the key role these raw materials have in today’s EU decarbonisation efforts. EBB
----------
Malaysia and China signs partnership to stabilize palm oil supply chain
Malaysia said on Sunday, April 2, that the country has signed a memorandum of understanding with a Chinese government-backed trade association to enhance palm oil trade and cooperation.
The Malaysian Palm Oil Board said the partnership will help Malaysia regain market share in the country.
Malaysia, the world’s second-largest palm producer, and China, the world’s second-largest buyer, will together promote the use of Malaysia’s sustainable palm oil. A part of the cooperation is to design and implement new technologies such as artificial intelligence in palm plantations.
“China wishes to work with Malaysia in order to secure the palm oil supply to the country,” the Malaysian board said in a statement.
“The agreement will also facilitate China’s participation on the technology exploration in the mechanization in Malaysia. This will help to increase productivity and reduce reliance on human labor in plantations,” the statement said.
In 2022, Malaysia exported 3.14 million tons of palm oil and palm products to China, making China its most important trading partner for palm oil after India. Scandasia
----------
Nigeria-Despite Dollar Restriction: Nigeria Imports N300bn Palm Oil In Six Years
Despite featuring prominently on a June 2015 list of import item not valid for forex by the Central Bank of Nigeria (CBN), Nigeria imported at least N299.6bn of palm oil from 2017 to 2022, an analysis of Nigeria’s Foreign Trade by Daily Trust has revealed.
The reports, which are released quarterly by the National Bureau of Statistics (NBS) indicate that the product itemed ‘Palm Crude Oil’ is often among the top five imported agricultural products into the country.
The oil palm tree produces high-quality oil used primarily for cooking in developing countries. It is also used in food products, detergents, cosmetics and, to a small extent, biofuel.
According to the governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, Nigeria imported 302,000 metric tons in 2017 despite placing the product in the forex exclusion list. Daily TrustNG
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April 03, 2023
UK’s decision to join CPTPP can boost Malaysia’s palm oil industry, says Fadillah
The deputy prime minister hopes Malaysia and the UK can collaborate to change the negative perception of palm oil and promote it as a healthy product.
PETALING JAYA: The UK’s decision to join a regional trade pact is expected to help Malaysia break down the stigma and negative propaganda surrounding palm oil, plantation and commodities minister Fadillah Yusof said today.
“Not only do we welcome the UK to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), we also welcome its trade secretary Kemi Badenoch’s remarks on palm oil,” he was quoted as saying by Bernama.
“… She rightly dispelled the myth of deforestation and the negative or untrue campaigns regarding the commodity,” he said at a Ramadan event in Kuching.
Fadillah, who is also deputy prime minister, hoped both countries could collaborate to change the negative perception of palm oil and promote it as a healthy product.
In a separate statement, he said the UK’s move to join the CPTPP presented Malaysia with an opportunity to strengthen its relationship with the UK amid the significant prospects that the Indo-Pacific region offered trading partners. Free Malaysia Today
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Nextgreen sets up SPV to develop 20 oil palm waste centres in Malaysia
KUALA LUMPUR (Apr 3): Nextgreen Global Bhd’s unit has set up a special purpose vehicle (SPV) to develop 20 oil palm waste collection and processing centres throughout Malaysia.
The SPV named “GTC Biomass Bhd" was established by Nextgreen’s wholly owned subsidiary Nextgreen Biomass Sdn Bhd (NGBSB) via a shareholders agreement with three other parties, the company said in a filing to the exchange on Monday (April 3).
The three parties are Greentech Malaysia Alliances Sdn Bhd (GTMASB), Koperasi Sahabat Amanah Ikhtiar Malaysia Bhd (KOOP SAHABAT) and Koperasi Perkhidmatan Setia Bhd. The Edge Markets
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PLS Plantations partners China's Cofco to develop food security initiatives
KUALA LUMPUR (April 3): Durian and oil palm planter PLS Plantations Bhd has entered into a partnership agreement with China's largest food manufacturer Cofco Food Import Co Ltd to develop and implement food security initiatives.
PLS said the two companies will exchange information and knowledge on food security initiatives, collaborate on food security research and development, and jointly invest and implement food security projects. They will also engage in resources, technology and expertise sharing, and conduct joint training and capacity-building activities related to food security initiatives, PLS said in a statement. The Edge Markets
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Indonesian palm oil production forecast to rise 3% but El Niño may bring severe dryness in second half of year
Palm oil production in Indonesia in the 2023/24 marketing year is expected to increase by 3% to 46M tonnes compared to the previous year due to improved yields, according to a report by the United States Department of Agriculture (USDA).
However, El Niño weather conditions could bring severe dryness in the second half of the year, the 20 March Foreign Agricultural Service (FAS) report said.
The USDA expected Indonesia’s palm oil consumption in 2023/24 to rise by 5% to 19.9M tonnes compared to the previous year due to increasing industrial and food use.
Although Indonesia’s implementation of the new B35 blending rate officially started in February, the country’s largest fuel retailer Pertamina needed more time to adjust its infrastructure in some regions to accommodate the new rate, which would delay its full implementation by around six months, the report said. For this reason, the USDA had increased its forecast for palm oil industrial use in 2022/23 by 12% to 11.8M tonnes.
“Assuming the Indonesian government maintains the blending rate at 35% and fuel use growth at 2%, palm oil consumption for industrial use is expected to reach 12.7M tonnes for 2023/24,” the USDA said. OFI
UK’s decision to join CPTPP can boost Malaysia’s palm oil industry, says Fadillah
The deputy prime minister hopes Malaysia and the UK can collaborate to change the negative perception of palm oil and promote it as a healthy product.
PETALING JAYA: The UK’s decision to join a regional trade pact is expected to help Malaysia break down the stigma and negative propaganda surrounding palm oil, plantation and commodities minister Fadillah Yusof said today.
“Not only do we welcome the UK to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), we also welcome its trade secretary Kemi Badenoch’s remarks on palm oil,” he was quoted as saying by Bernama.
“… She rightly dispelled the myth of deforestation and the negative or untrue campaigns regarding the commodity,” he said at a Ramadan event in Kuching.
Fadillah, who is also deputy prime minister, hoped both countries could collaborate to change the negative perception of palm oil and promote it as a healthy product.
In a separate statement, he said the UK’s move to join the CPTPP presented Malaysia with an opportunity to strengthen its relationship with the UK amid the significant prospects that the Indo-Pacific region offered trading partners. Free Malaysia Today
----------
Nextgreen sets up SPV to develop 20 oil palm waste centres in Malaysia
KUALA LUMPUR (Apr 3): Nextgreen Global Bhd’s unit has set up a special purpose vehicle (SPV) to develop 20 oil palm waste collection and processing centres throughout Malaysia.
The SPV named “GTC Biomass Bhd" was established by Nextgreen’s wholly owned subsidiary Nextgreen Biomass Sdn Bhd (NGBSB) via a shareholders agreement with three other parties, the company said in a filing to the exchange on Monday (April 3).
The three parties are Greentech Malaysia Alliances Sdn Bhd (GTMASB), Koperasi Sahabat Amanah Ikhtiar Malaysia Bhd (KOOP SAHABAT) and Koperasi Perkhidmatan Setia Bhd. The Edge Markets
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PLS Plantations partners China's Cofco to develop food security initiatives
KUALA LUMPUR (April 3): Durian and oil palm planter PLS Plantations Bhd has entered into a partnership agreement with China's largest food manufacturer Cofco Food Import Co Ltd to develop and implement food security initiatives.
PLS said the two companies will exchange information and knowledge on food security initiatives, collaborate on food security research and development, and jointly invest and implement food security projects. They will also engage in resources, technology and expertise sharing, and conduct joint training and capacity-building activities related to food security initiatives, PLS said in a statement. The Edge Markets
----------
Indonesian palm oil production forecast to rise 3% but El Niño may bring severe dryness in second half of year
Palm oil production in Indonesia in the 2023/24 marketing year is expected to increase by 3% to 46M tonnes compared to the previous year due to improved yields, according to a report by the United States Department of Agriculture (USDA).
However, El Niño weather conditions could bring severe dryness in the second half of the year, the 20 March Foreign Agricultural Service (FAS) report said.
The USDA expected Indonesia’s palm oil consumption in 2023/24 to rise by 5% to 19.9M tonnes compared to the previous year due to increasing industrial and food use.
Although Indonesia’s implementation of the new B35 blending rate officially started in February, the country’s largest fuel retailer Pertamina needed more time to adjust its infrastructure in some regions to accommodate the new rate, which would delay its full implementation by around six months, the report said. For this reason, the USDA had increased its forecast for palm oil industrial use in 2022/23 by 12% to 11.8M tonnes.
“Assuming the Indonesian government maintains the blending rate at 35% and fuel use growth at 2%, palm oil consumption for industrial use is expected to reach 12.7M tonnes for 2023/24,” the USDA said. OFI
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April 02, 2023
Malaysia, China ink partnership to stabilise palm oil supply chain
KUALA LUMPUR: Malaysia said on Sunday (Apr 2) it has signed a memorandum of understanding with a China government-backed trade association to enhance palm oil trade and cooperation.
The Malaysian Palm Oil Board said its partnership with the China Chamber of Commerce of Import and Export of Foodstuffs, Native Produce and Animal By-Products will help Malaysia regain market share in the world's most populous country.
Malaysia, the world's second-largest palm producer, and China, the world's second-largest buyer, will jointly promote the use of Malaysia's sustainable palm oil in China, as well as the design and implementation of new technologies such as artificial intelligence in oil palm plantations.
"China wishes to work with Malaysia in order to secure the palm oil supply to the country," the Malaysian board said in a statement. The memorandum "will help gain China’s confidence towards Malaysian palm oil".
The agreement "shall facilitate China's participation on the technology exploration in the oil palm mechanisation in Malaysia, which will help to increase productivity and reduce reliance on human labour in the plantation," it said.
In 2022, Malaysia exported 3.14 million tonnes of palm oil and palm products to China, making China its most important trading partner for the edible oil after India. Channel News Asia
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Malaysia, China ink partnership to stabilise palm oil supply chain
KUALA LUMPUR: Malaysia said on Sunday (Apr 2) it has signed a memorandum of understanding with a China government-backed trade association to enhance palm oil trade and cooperation.
The Malaysian Palm Oil Board said its partnership with the China Chamber of Commerce of Import and Export of Foodstuffs, Native Produce and Animal By-Products will help Malaysia regain market share in the world's most populous country.
Malaysia, the world's second-largest palm producer, and China, the world's second-largest buyer, will jointly promote the use of Malaysia's sustainable palm oil in China, as well as the design and implementation of new technologies such as artificial intelligence in oil palm plantations.
"China wishes to work with Malaysia in order to secure the palm oil supply to the country," the Malaysian board said in a statement. The memorandum "will help gain China’s confidence towards Malaysian palm oil".
The agreement "shall facilitate China's participation on the technology exploration in the oil palm mechanisation in Malaysia, which will help to increase productivity and reduce reliance on human labour in the plantation," it said.
In 2022, Malaysia exported 3.14 million tonnes of palm oil and palm products to China, making China its most important trading partner for the edible oil after India. Channel News Asia
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April 01, 2023
Malaysia-No plans to regulate price of Malaysian palm oil as government-controlled product
KUALA LUMPUR: The Ministry of Plantation and Commodities (KPK) said the government does not plan to regulate the price of Malaysian palm oil as a government-controlled product for now.
The ministry affirmed that this was because the price of palm oil in the market is influenced by fundamental factors and market sentiment, which changes based on demand.
“Among the basic factors that influence the price movement of crude palm oil (CPO) is the low supply of palm oil and high demand for exports.
“These contribute to the increase in the price of palm oil in the market,” the ministry said in a written reply to a question from Senator Datuk Bobbey Suan who wanted to know about the long-term measures to regulate the price of Malaysian palm oil as a government-controlled product.
The response, which was published on the parliament’s website today, also stated that the increase in the price of soybean oil and Brent crude oil will also contribute to the CPO price because the prices of both products move in tandem in the market.
In the meantime, KPK said it strives to ensure that CPO prices remain stable in the future by taking strategic measures such as collaborating with Bursa Malaysia to launch a CPO futures contract specifically for East Malaysia known as the East Malaysia Palm Oil Futures Contract. The Sun Daily
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CPTPP: UK accepted into Indo-Pacific trade bloc in biggest trade deal since Brexit
Prime Minister Rishi Sunak claims joining the 11-strong trade area will "demonstrate the real economic benefits of our post-Brexit freedoms".
The UK has been accepted into an Indo-Pacific trade bloc in what the government says is its biggest trade deal since Brexit.
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is a free trade agreement between 11 countries across the Indo-Pacific, including Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam - and now the UK.
The partnership sees the countries open up their markets to one another, reducing trade barriers and tariffs, with the hope of bolstering the economies of its members.
Trade Secretary Kemi Badenoch said the UK's accession to the CPTPP was formally confirmed in a telephone call between her and counterparts from the group at 1am BST on Friday.
The UK is the first European country to enter the agreement, and the government claims it will lead to a £1.8bn boost to the economy "in the long run".
Prime Minister Rishi Sunak said the deal shows "what we can achieve when we unleash the benefits of Brexit". Sky News
Malaysia-No plans to regulate price of Malaysian palm oil as government-controlled product
KUALA LUMPUR: The Ministry of Plantation and Commodities (KPK) said the government does not plan to regulate the price of Malaysian palm oil as a government-controlled product for now.
The ministry affirmed that this was because the price of palm oil in the market is influenced by fundamental factors and market sentiment, which changes based on demand.
“Among the basic factors that influence the price movement of crude palm oil (CPO) is the low supply of palm oil and high demand for exports.
“These contribute to the increase in the price of palm oil in the market,” the ministry said in a written reply to a question from Senator Datuk Bobbey Suan who wanted to know about the long-term measures to regulate the price of Malaysian palm oil as a government-controlled product.
The response, which was published on the parliament’s website today, also stated that the increase in the price of soybean oil and Brent crude oil will also contribute to the CPO price because the prices of both products move in tandem in the market.
In the meantime, KPK said it strives to ensure that CPO prices remain stable in the future by taking strategic measures such as collaborating with Bursa Malaysia to launch a CPO futures contract specifically for East Malaysia known as the East Malaysia Palm Oil Futures Contract. The Sun Daily
----------
CPTPP: UK accepted into Indo-Pacific trade bloc in biggest trade deal since Brexit
Prime Minister Rishi Sunak claims joining the 11-strong trade area will "demonstrate the real economic benefits of our post-Brexit freedoms".
The UK has been accepted into an Indo-Pacific trade bloc in what the government says is its biggest trade deal since Brexit.
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is a free trade agreement between 11 countries across the Indo-Pacific, including Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam - and now the UK.
The partnership sees the countries open up their markets to one another, reducing trade barriers and tariffs, with the hope of bolstering the economies of its members.
Trade Secretary Kemi Badenoch said the UK's accession to the CPTPP was formally confirmed in a telephone call between her and counterparts from the group at 1am BST on Friday.
The UK is the first European country to enter the agreement, and the government claims it will lead to a £1.8bn boost to the economy "in the long run".
Prime Minister Rishi Sunak said the deal shows "what we can achieve when we unleash the benefits of Brexit". Sky News
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Palm oil news. CSPO Watch April 2023