Headline News on Palm Oil. May 2021

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​​Read curated news that impacts the global palm oil industry.
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EU - ​Biodiversity: MEPs demand binding targets to protect wildlife and humans
An EU Biodiversity Law is needed to set the biodiversity governance framework until 2050, the Environment Committee agreed on Friday.

The committee adopted its position on the “EU Biodiversity Strategy for 2030: Bringing nature back into our lives”, with 62 votes to 4 and 12 abstentions, to improve biodiversity in Europe.

As nature is declining globally at an unprecedented rate with one million out of an estimated eight million species threatened by extinction (IPBES), MEPs welcome the ambition in the EU Biodiversity Strategy to ensure that by 2050 the world’s ecosystems are restored, resilient, and adequately protected.

However, MEPs strongly regret that the EU has not achieved the 2020 biodiversity objectives and say that the new strategy must adequately tackle all five main drivers of change in nature: changes in land and sea use; direct exploitation of organisms; climate change; pollution, and invasive alien species. There is a need to mobilise 20 billion EUR per year for biodiversity action in Europe, they insist.​ EuropeanSting

GLOBAL - Nearly 40% of large companies pose biodiversity threat: Moody's ESG study
Thirty-eight percent of 5,300 large, publicly traded companies operate at least one facility causing loss of habitat and a risk to biodiversity, according to a study by Moody’s ESG Solutions of more than 2.1 million facilities worldwide using “high resolution remote sensing data.”
Moody’s ESG Solutions describes its framework for measuring biodiversity risk as “a foundation for understanding the biodiversity risks of companies in investment and lending portfolios.”

A rising threat to biodiversity “calls for a dual materiality approach, in which accounting ‘values’ a company’s long-term impact on ecosystems and society,” Moody’s said, adding “this means that material information includes not only the impact of biodiversity loss on a company’s business, but also the impact of the company on biodiversity and natural capital.” CFODive

GLOBAL - ​Corporate-led $1bn forests scheme is ‘just the beginning’
Amazon, Boston Consulting, McKinsey, Unilever, Salesforce, Airbnb, GSK, and Nestlé in April threw their weight behind a $1bn scheme aimed at tackling deforestation that now faces the challenge of establishing which countries will receive funds.

The Lowering Emissions by Accelerating Forest Finance (Leaf) venture was launched just as new data showed greenhouse gas emissions from the loss of previously untouched tropical forests had exceeded the combined emissions from Europe’s five-largest economies. 

Under the proposed scheme, companies would in effect pay countries such as Brazil, Indonesia and the Democratic Republic of Congo for carbon credits linked to the avoidance of deforestation. FinancialTimes

China securities regulator says crude oil, palm oil options to start trading in June
​SHANGHAI, May 28 (Reuters) - China's securities regulator said on Friday it has approved the trading of crude oil and palm oil options on the Shanghai International Energy Exchange and the Dalian Commodity Exchange respectively.

Crude oil options will begin trading on June 21, and palm oil options on June 18, the Securities Regulatory Commission (CSRC) said. Nasdaq/Reuters

GLOBAL - ​‘Green’ investments must triple by 2030, report urges
With half of the globe’s economic growth dependent on nature, now is the time to galvanise political and business momentum to restore it, environmental experts say.

Investments in nature-based solutions must triple by 2030 and quadruple by 2050, a new report urges, warning of irreversible damage to economies, the planet and humanity if the status quo remains unchanged.

The State of Finance for Nature Report warns that public and private investment must triple to $350bn by 2030 from the current $133bn – or face a $4.1 trillion gap by 2050. AlJazeera

UK - ​Food brands challenge deforestation rules in UK environment bill
New bill will enforce fines on UK-based companies that fail to cut links to illegally deforested land

Trade associations representing leading food suppliers have questioned the need for new regulations to protect forests overseas, which will come before parliament in the environment bill on Wednesday.

The much-delayed bill will contain provisions to force UK-based companies to examine their supply chains in depth and ensure that they are free of links to land illegally deforested overseas.

It will be the first time such due diligence requirements have been introduced into UK law, and campaigners and some companies have welcomed the changes. Similar regulations are also planned in the EU.​ TheGuardian

EU - ​Five EU member states demand stricter oversight of biofuels
Five EU countries have demanded the European Commission establish a framework for stricter supervision of the use of biofuels in the bloc in the wake of a number of cases of fraud relating the sale of used cooking oil of unsustainable origin as transport fuel.

The Netherlands, Belgium, France, Germany and Luxembourg issued a joint statement on the need to improve the supervision for the use of biofuels under the Renewable Energy Directive (RED II) in order to ensure the bloc better meets its targets for decarbonising transport.

EURACTIV has learned that the five countries will raise the issue at the environment ministers’ council on 10 June. The Dutch-led initiative comes as the European demand for biodiesel continues to grow. Euractiv

Malaysia to escalate EU palm oil dispute at WTO
Malaysia is set to escalate a trade dispute with the European Union and two member states for restricting palm oil-based biofuels, WTO filings showed ahead of a meeting of its dispute settlement body on Friday.

The EU is implementing a renewable energy directive that the world's top two palm oil producers Malaysia and Indonesia are contesting at the global trade watchdog in two separate, parallel cases.

They say the EU measures confer "unfair benefits" on local producers of biofuels, such as rapeseed and sunflower oil.

Malaysia's request for the establishment of a WTO panel to adjudicate on the case is set to be formalised at a meeting later on Friday. Reuters

Malaysia backs CPOPC’s objection to Belgium’s palm-based biofuel ban
Malaysia backs the Council of Palm Oil Producing Countries’ (CPOC) move to submit an objection to Belgium, which is planning to ban the use of palm oil as a biofuel next year.
CPOPC has made its objection through a letter to Belgian Prime Minister Alexander De Croo. Malaysia is one of the founding members of CPOPC.
Commodities Minister Mohd Khairuddin said Belgium’s decision came after a similar move taken by France and Lithuania.
He said: “As the world’s second largest palm oil producer, Malaysia is extremely disappointed with the action that was taken without considering the country’s determination and effort to ensure the sustainability of the palm oil industry. ArgusMedia

EU - If EU is serious about a partnership with ASEAN, we must stop erecting trade barriers
The strategic objective of Ursula von der Leyen’s Commission Presidency was made clearly and publicly: to be a ‘geopolitical’ Commission. Notwithstanding the COVID-19 pandemic – which has necessitated a pivot back to intra-EU politics – the Von der Leyen Commission has made progress on some of its geopolitical goals.
Perhaps most notable is the EU’s successful elevation to become a Strategic Partner of ASEAN, back in December 2020. While much of the Brussels bubble focus was on the China investment deal (which now looks unlikely ever to be ratified) – the ASEAN progress is far more significant. The region is one of the fastest-growing in the world, is (mostly) democratic and pro-Western, and has a much greater willingness to open up to trade and investment. The EU’s exports of goods to Indonesia, for example (ASEAN’s largest market, representing about 1/3 of the ASEAN GDP) have declined since 2016, and the EU is only the fifth-largest trading partner for Indonesia. NewEurope

Southeast Asia - ​SE Asian POME sellers seek support from EU legislators
Southeast Asian palm oil mill effluent (POME) producers are eyeing legislative developments in Europe with concern after Germany decided to not double count the product towards its renewable mandate.

Germany is increasing its greenhouse gas reduction obligation to 25pc by 2030 from 6pc currently with a minimum 2.6pc share of advanced feedstocks, which include POME, listed under Annex IX part A of the Renewable Energy Directive II (RED II).

But anything blended above the minimum share will be eligible for double counting towards mandates, except for POME, and Berlin is calling for it to be struck off the list completely. ArgusMedia

US - ​The race for green fuel is on
The push to fight climate change with greener fuels is colliding with another challenge facing the world as it struggles to emerge from the pandemic: skyrocketing food prices.

Soaring demand for crops has once again raised the question of whether nations should really depend on ethanol and renewable diesel to save the planet from global warming. Corn, soybeans, palm oil and sugar, which are increasingly processed into biofuels worldwide, are part of a staggering commodities rally that’s making everything from animal feed and noodles to taco shells and chocolate more expensive, putting central bankers worldwide in a tough spot between fighting inflation and seeking to stimulate battered economies.

Projects such as Phillips 66’s conversion of its San Francisco area oil refinery into one of the globe’s biggest renewable fuel plants are helping stoke the price surge at a time when farmers in key growing countries grapple with bad weather, while China gobbles up supplies. U.S. production capacity for renewable diesel will jump almost sixfold by the end of 2024, according to JPMorgan Chase & Co. Meanwhile, costlier food aggravates lingering shockwaves from the coronavirus: increased world hunger and unemployment. FarmProgress

German parliament raises targets for emission cuts in transport sector
Germany has increased the emissions reduction targets in its transport sector. Following changes introduced by parliament,  the sector has to reach a share of 32 percent renewables by 2030. The use of biofuels made from palm oil will be ended by 2023. The bioenergy lobby welcomed the changes, saying that they would help to reduce greenhouse gas emissions and provide planning security. But environmental NGO DUH criticised that the new targets cemented the use of unsustainable agri-biofuels and meant continued support for the combustion engine. [Updates with successful vote in parliament and statement from environment minister]

Transport fuels in Germany must reach a higher share of renewable sources than previously suggested by the government. The MPs of the governing coalition (CDU-CSU/SPD) in the environment committee of the federal parliament (Bundestag) decided to increase the target of the greenhouse gas reduction quota for 2030 to 25 percent. The new law which is based on the EU's Renewable Energy Directive (RED II), was passed by parliament on 20 May 2021.

The government had previously proposed a greenhouse gas reduction quota of 22 percent in the transport sector. Now the increase in the quota will be linear, and corresponds to a target share of renewable energies in the transport sector of 32 percent by 2030. The use of biofuels made from palm oil will end in 2023, three years earlier than suggested in the government’s draft bill. CleanEnergywire

Indonesian exports surge in April on higher commodity prices
JAKARTA, May 20 (Reuters) - Indonesia's exports racked up their strongest rise in 11 years in April, boosted by asurge in prices of key commodities such as palm oil and copper, though the unexpectedly robust figure is not expected to change the central bank's policysettings.

The resource-rich nation's shipments rose 51.94% on a yearly basis to $18.48 billion, marking the sharpest increase since 2010 and beatinga forecast 41% rise in a Reuters poll. The export value was the highest since August, 2011.

The jump boosted April's trade surplus for Southeast Asia's largest economy to $2.19 billion, up from a surplus of $1.56 billion in March and more than double the poll forecast of $1 billion. The April surplus was the biggest in five months. Nasdaq

Indonesia - ​Indonesia's palm oil sector a driver of illegal logging: US study
Palm oil cultivation in Indonesia, and soy and beef farming in Brazil - home to roughly 60 per cent of the Amazon rainforest - were key drivers of illegal deforestation, the study said

"If we don't urgently stop this unlawful deforestation, we don't have a chance to beat the three crises facing humanity - climate change, biodiversity loss and emerging pandemics," said Arthur Blundell, report lead co-author and an adviser to Forest Trends, which works on economic tools to protect ecosystems.

The production of other agricultural commodities, such as cocoa used to make chocolate in Honduras and West Africa, and corn in Argentina, was also behind illegal forest clearance. AsiaOne

Indonesia - ​Palm oil buying interest slows as trade awaits Indonesia export levy decision: sources
New Delhi — Buying interest for palm oil has seen a reduction in Asia markets during the week ending May 21 as traders go into wait-and-watch mode ahead of potential cuts to the $255/mt export levy that Indonesia charges to subsidize its national bio-diesel program, multiple sources told S&P Global Platts.

According to trade sources, a $100/mt cut in the export levy has been proposed and may be announced in the coming weeks. However, there is no official announcement yet.
"Prices have fallen steeply recently and I don't think anybody is rushing to buy much until July at least," Marcello Cultrera, institutional sales manager for Singapore-based Phillip Futures said.

"Until there is more clarity, some will stay on the sidelines."​ SPGlobal

Brazil - ​Amazon palm oil has not lived up to its promise of sustainability (commentary)
In the late 2000s and the early 2010s, the Brazilian palm oil industry told us that oil palm plantation expansion would take a different path than in Southeast Asia, where the sector destroyed vast areas of native forests, increased the risk of fire by draining peatlands, and pushed Indigenous and local peoples off their traditional lands. We were told that by limiting oil palm plantations to low-yielding cattle pasture that was long ago carved out of the region’s forests, palm oil could increase carbon storage, create more economic activity and employment, and help restore ecosystem services — all without deforestation. Brazilian regulations governing biofuel production would keep the industry in line if voluntary commitments weren’t enough.

A decade later, we can now see that the Amazon palm oil sector has not lived up to its promise. Mongabay

GLOBAL - ​Creating global protected areas 'insufficient' to prevent species decline, UN report warns
Creating global protected areas 'insufficient' to prevent species decline, UN report warns
Biodiversity is still declining despite a protected land target win, as UN warns that areas must be “more than lines on a map”.

Hitting the global target for protected land is "insufficient" to prevent biodiversity loss, the UN has warned, as species continue to decline.

Although the world has made vast strides in designating protected land and marine areas, it has fallen short on its management of these zones, according to a new UN Environment Programme report.​ SkyNews

EU - Deforestation campaigners concerned as EU delays policy proposals
Amid mounting concerns the European Commission will delay a “long awaited” legislative proposal on tackling deforestation risks in European supply chains, a group of NGOs has outlined a raft of policy recommendations including stricter due diligence requirements for banks and companies, as well as possible criminal penalties.

Over the past year, politicians in Brussels have increasingly flagged a lack of regulation for companies bringing products to market in the EU that have potential ties to deforestation and forest degradation globally.

In an October resolution, the European Parliament called on the Commission to propose an “ambitious new policy approach” for companies selling certain commodities and related products in the bloc.​ GlobalTradeReview

Green Finance - UOB grants its first two green trade finance facilities under industry framework to help clients broaden sustainability initiatives and strengthen supply chain resilience
SINGAPORE, May 19, 2021 /PRNewswire/ -- UOB today announced that it has extended its first green trade finance facilities under the Green Finance Industry Taskforce's Green and Sustainable Trade Finance and Working Capital Framework. The facilities will help two of the Bank's clients in Singapore's food supply chain build on their sustainability initiatives and strengthen their supply chain resilience. The clients are Musim Mas Group[1], a global leader in the merchandising and distribution of palm oil and its derivative products, and Barramundi Group Pte Ltd[2], an aquaculture company. YahooFinance

GLOBAL - ​FROM BEEF TO CHOCOLATE, ILLEGAL DEFORESTATION FOUND BEHIND MANY EVERYDAY FOODS
BOGOTA, May 18 (Thomson Reuters Foundation) - Nearly 70% of tropical forests cleared for cattle ranching and crops such as soybeans and palm oil were deforested illegally between 2013 and 2019, a study showed on Tuesday, warning of the impact on global efforts to fight climate change.

Illegal clearance for commercial agriculture was behind the loss of 4.5 million hectares of forest – an area the size of Denmark - on average each year in Latin America, Southeast Asia and Africa, said the report by U.S.-based nonprofit Forest Trends.

"If we don't urgently stop this unlawful deforestation, we don't have a chance to beat the three crises facing humanity - climate change, biodiversity loss and emerging pandemics," said Arthur Blundell, report lead co-author and an advisor to Forest Trends, which works on economic tools to protect ecosystems. REUTERS

EU - ​Food majors put weight behind plans to halt and reverse EU-driven deforestation
​A group of 11 food businesses including Nestlé, Danone, Carrefour Group, Barry Callebaut, Tesco and Sainsbury’s have announced their support for European Union plans to increase supply chain transparency and traceability for commodities that may be linked to deforestation. FoodNavigator

Southeast Asia - ​Towards a growing and greener regional economy
Instead of exclusion, companies in South-east Asia should be supported and offered incentives as they take steps up the sustainability ladder.

EVEN amid the Covid-19 pandemic, there is growing global recognition of another crisis that could be as big and probably worse - climate change. More governments are committing to address the problem, including China, the European Union and the United States under President Joe Biden. Global corporations and businesses too will face increasing expectations. BusinessTimesSG

Malaysia - ​Malaysian palm oil losing price competitiveness — Maybank Kim Eng
KUALA LUMPUR (May 17): Malaysian palm oil is losing its price competitiveness, said Maybank Kim Eng Research, citing creeping imports and declining exports.

Noting that Malaysia's stockpile — as reported by the Malaysian Palm Oil Board (MPOB) — is often viewed as a proxy to the region’s stockpile, the research house said the palm oil sector runs the risk of ending the price rally prematurely if the rising stockpile is left unchecked.

To avoid a repeat of the decline in prices that occurred in 2012, Maybank Kim Eng said an immediate stopgap measure would be to exempt duties on Malaysian crude palm oil (CPO) exports. TheEdgeMarkets

Malaysia - ​Poor optics for ESG among plantations
KUCHING: The local palm oil industry remains a target on the environmental, social and governance (ESG) front in spite of intense efforts in implementing sustainable practices across the value chain.

Being the target of non-governmental organisations (NGOs), analysts at AmInvestment Bank Bhd (AmInvestment Bank) commented that there was “room for error” as all it takes is for a small fire or disgruntled worker to set the wheels in motion.

“Negative publicity from the US Customs and Border Protection’s (CBP) ban on Malaysian palm products from FGV Holdings Bhd and Sime Darby Plantation Bhd has amplified the misperception that the palm oil industry in Malaysia is fraught with labour abuse,” it said in a special note.​ BorneoPost

Malaysia - (Press Release) ​Verde Resources Invests in Carbon Capture Development
KUALA LUMPUR, MALAYSIA (PRWEB) MAY 14, 2021
Did you know Southeast Asia has abundant, underused agricultural waste? The waste stems from palm oil production and Verde Resources (OTCQB: VRDR) plans to use the waste by introducing carbon capture products.

“Verde recognizes the wastefulness of the palm oil industry in Southeast Asia,” said Balakrishnan, president of Verde Resources. “While we must stress that we are not trying to promote the palm oil industry at all, we strive to refine the waste to establish long term food security through organic, sustainable farming, as well as supporting the global climate agenda. We believe that palm oil waste such as empty fruit bunches (EFB) and palm kernel shells (PKS) need not go to waste. Though we have already developed some exciting byproducts, we will continue to invest in research and development. It is a shame that so much palm biomass is recklessly dumped or left to rot.” PRWeb

UK - ​Why retailers must be mindful of the impending Environment Bill
While the enforcement of ‘Forest Risk Rules’ and the new Environment Bill have been delayed due to the pandemic, retailers must now ready supply chains and establish processes for compliance, advises DLA Piper’s Teresa Hitchcock

In August 2020, the UK government announced an initiative aimed at preventing UK companies from encouraging purchasing decisions that would result in unlawful deforestation abroad, threatening biodiversity, and hampering global efforts to combat climate change.

The Environment Bill currently before Parliament will make provision for the making of secondary legislation enforcing “Forest Risk Rules”. ​RetailWeek

Ghana - Gov't admonished to invest in Oil Palm to create jobs, build Ghanaian economy
President of Artisanal Palm Oil Millers and Outgrowers Association of Ghana, Mr.Paul-Kwabena-Amaning, is urging the government to invest in the palm oil industry to boost the economy.

The Ministry of Trade will receive Two hundred and Eighty-two million Ghana cedis ( GHC282,000,000.00) to pursue various interventions in which he said some of the monies should be channeled to the palm oil industry sector to create employment for the Ghanaian youth.

Mr. Amaning also noted that if the government invests in the sector, about 1.5 million Ghanaians can be employed which will reduce the unemployment rate in the country.

“If we are able to contain the palm industry, we can employ about 1.5 million people, it can solve Ghana’s unemployment issue,” Paul-Kwabena-Amaning exclusively told Kwaku Dawuro on ‘Anopa Nkomo’ on Accra-based Kingdom FM 107.7

“Surprisingly, Ghana imports oil from Malaysia but we have the capacity to produce, I can tell you for a fact that the previous government did not do well in the palm industry because we have the land, the weather is okay so what else? ModernGhana

Korea - ​JC Chemical: Strongest-ever Earnings amid Stricter Environmental Regulations
JC Chemical logged its highest-ever quarterly earnings in 1Q21. Sales at its bio-heavy oil division surged on a tightening of the renewable portfolio standard (RPS). Both a rising palm oil price and a higher mandatory blending ratio of biodiesel are to steer the firm’s earnings growth in 2Q21.

Sales surge 92% y-y at bio-heavy oil division amid stricter environmental regulations

The bio-heavy oil division led the company-wide earnings growth, enjoying sales of W40.4bn (+92% y-y). The mandatory renewable energy quota tightened from 7% to 9% this year, and will be increased to 25% by 2030. As bio-heavy oil is an eco-friendly fuel that can run generators without the need for desulfurization and denitrification facilities, the company is to benefit from the eco-friendly changes in government policy. In addition, if shipping companies and shipbuilders adopt JC Chemical’s bio-heavy oil (which is currently under testing), further growth is to be seen. BusinessKorea

Solomon Islands - ​A cultural basis for development in Solomon Islands
Early interactions between Solomon Islanders and the global economic system, such as through early explorers, labour recruiters, traders, planters, missionaries, and colonial administrators left a negative impression on many locals. As a result, Solomon Islanders often view with scepticism any development that involves their customary land. In the current era, this presents development challenges.

One way to address this scepticism is to establish development projects that understand and accommodate local customs. A good example of how such development projects can deliver both development and community benefits is the growth of palm oil plantations in Guadalcanal.

Palm oil development on Guadalcanal was part of the British colonial government’s efforts to develop a plantation economy before independence. In the lead-up to independence, the government signed agreements with a number of multinational companies to plant oil palm, grow rice, cut timber, and prospect for minerals to reduce dependence on British aid.​ PolicyForum

China - ​China to reduce palm oil imports in 2021-22 as it eyes vegoil self-reliance
New Delhi — China is expected to lower its palm oil purchases in the 2021-22 marketing year, spanning October 2021-September 2022, as it looks to ramp up domestic edible oil production -- a move that can help reduce reliance on vegetable oil imports.

China's Agriculture Outlook Committee, or CAOC, lowered its forecast for 2021-22 palm oil imports to 4.2 million mt from the 2020-21 estimate of 4.5 million mt, according to the Chinese Agricultural Supply and Demand Estimates, or CASDE, report released May 13.
This was contrary to a May 12 report by the US Department of Agriculture's Foreign Agricultural Service, which sees China's 2021-22 palm oil imports to grow to 7.2 million mt, up almost 6% from 2020-21 levels.

China is the world's second-largest palm oil importer after India. SPGlobal

China - ​Chinese edible oils at multi-year highs ahead of USDA report
SHANGHAI, May 12 (Reuters) - Chinese edible oil futures rallied to multi-year highs on Wednesday ahead of a U.S. report on global agricultural supply and demand, and on expectations for tight oil supplies.

Soyoil DBYcv1 on the Dalian Commodity Exchange rallied over 4% to an 8-year top of 9,184 yuan per tonne on Wednesday. Dalian palm oil DCPcv1 also hit its highest in over eight years, advancing nearly 5% to 8,344 yuan per tonne.

Meanwhile, rapeseed oil prices COIcv1 on the Zhengzhou Commodity Exchange rose to a record high of 11,119 yuan per tonne.

"The market expects that U.S. and global soybeans end-stocks will continue to decline, so there is an expectation of tight supply and demand," said Haitong Futures edible oils analyst Kong Lingqi, referring to end-stocks data from a U.S. Department of Agriculture report. Nasdaq

India's April palm oil imports surge 82% year-on-year, says trade body
India's imports of palm oil imports jumped 82% in April on the year as refiners stepped up purchases of the tropical oil to reduce imports of expensive soyoil and sunflower oil, a trade body said on Wednesday.

The country imported 701,795 tonnes of palm oil last month, while soyoil imports fell by 21% to 144,020 tonnes, the Solvent Extractors' Association of India (SEA) said in a statement.

Sunflower oil imports dropped 18% to 184,097 tonnes in April after prices more than do ..

India buys palm oil from Indonesia and Malaysia while other oils, including soyoil and sunflower oil, are sourced from Argentina, Brazil, Russia and Ukraine.

Palm oil imports showed a big jump in April from a year ago as a complete lockdown last year hit imports in April 2020, the SEA said. EconomicTimesIndia

Malaysia - ​M’sia to enhance bilateral cooperation with Saudi, UAE
MALAYSIA will further enhance its bilateral cooperation with Saudi Arabia and the United Arab Emirates (UAE) in a more comprehensive and strategic direction, and rebuild the confidence among the business community.

Considering the importance of bilateral trade between both countries, the Malaysia External Trade Development Corp (Matrade) has arranged a series of business meetings with prominent Saudi and UAE companies during a recent trade mission led by International Trade and Industry Minister Datuk Seri Mohamed Azmin Ali.

Among the focus sectors were healthcare services, facility management, medical devices, furniture, palm oil, fast-moving consumer goods (FMCG) and lifestyle products.
Matrade said one of the major importers of Malaysia’s palm oil in Saudi Arabia, Savola Group, is committed to increasing their sourcing of palm oil from Malaysia.
“The group wants to make Saudi Arabia as their distribution hub for other parts of Gulf Cooperation Council, and Middle East and North Africa markets,” Matrade said. TheMalaysianReserve

Cameroon - ​Multimodal logistics solutions for the agricultural sector in the Democratic Republic of the Congo
(BOLLORE) - Bolloré Transport & Logistics in the Democratic Republic of the Congo (BTLDRC) is ensuring transport operations by road and rail for the country’s agricultural sector. The company is promoting multimodal solutions for supplying the DRC with inputs and shipping agricultural products.
On 12 April 2021, BTLDRC made the first delivery of 36 containers of fertiliser from Central Europe to the Brabanta plantation company. The containers were received at the Port of Matadi then shipped 350 km by road and stored at the Port of Kinshasa Container Terminal (PKCT). The containers were then loaded onto the barges of the waterway transport operator Société Centrafricaine de Transport Fluvial (SOCATRAF) and transported 800 km by river to be delivered to Mapangu site in the province of Kasaï-Occidental.
As part of the operation, Brabanta, which entrusted BTLDRC with the logistics for several batches of containers of farming inputs, is shipping its production by barge. Over 15,000 tonnes of palm oil from Mapangu will thus be shipped to Kinshasa to be processed to the benefit of local populations. EcofinAgency

Malaysia/Japan - Japan’s J-Power turns to biomass from palm oil trees
Japanese electricity supplier J-Power plans to produce wood pellets from waste palm oil trees in Malaysia in keeping with Japan's carbon neutral goal by 2050.

J-Power is considering co-firing the wood pellets with coal at unspecified power generation plants to help curb its carbon dioxide emissions. A detailed schedule of the project and the planned volume of wood pellet output are unavailable.

The company is targeting carbon neutral power generation by 2050, aiming to scrap its ageing coal-fired units while introducing advanced technology including biomass and ammonia co-fired units. The company plans to upgrade the 500MW No.2 unit at its Matsushima coal-fired power plant by installing a gasification furnace to boost its thermal efficiency. ArgusMedia

Malaysia/US - BornOil enters US market, collaborating with Verde Resources on green technology initiatives
KUALA LUMPUR, 10 May 2021: In an announcement to Bursa Malaysia Securities today, Borneo Oil Berhad (Bornoil) said its indirect wholly-owned subsidiary, Borneo Energy Sdn Bhd (BOE), has entered into a sale and purchase agreement with Gold Billion Global Limited (GBG) for the disposal of technology assets and intellectual property rights for a total consideration of USD5 million.

In return, BOE would receive 166,666,667 new ordinary shares of Verde Resources Incorporated (Verde), a Nevada USA corporation listed on the OTCQB market. GBG is a wholly-owned subsidiary of Verde.

BOE is the exclusive licensee of a technology known as Catalytic Biofraction for Sabah, while also owning and operating a plant utilising this process that converts oil palm biomass into biochar, biofuel, biogas and pyroligneous acid.​ Malaysiakini

Tanzania - Govt Allocates Over 10bn/ - to Boost Edible Oil Production
The government has set aside over 10.6bn/- in the next financial year to facilitate Agricultural Seed Agency (ASA) produce improved seeds that can boost edible oil production in the country.

Deputy minister for Agriculture Hussein Bashe told the National Assembly on Monday the country's annual demand for edible oil stands at 570,000 tonnes, but production weighs on 205, 000 tonnes leaving a deficit of 365,000 tonnes.

Responding to a basic question from Boniphace Getere (Bunda - CCM) who had wanted to know what caused Tanzania's insufficiency of cooking oil, the deputy minister said underproduction owing to poor faming technologies is to blame.

He quickly said the deficit in production of edible oil has forced the government to spend 474bn/- per year to import the key ingredient for cooking.

"The government continues to encourage the cultivation of oil crops including sunflower, palm oil and cotton in all regions with land and climate suitable for the cultivation of these crops," he noted. AllAfrica

Uganda - Government launches palm oil project in Buvuma
BUVUMA – The Minister of Agriculture, Animal Industry and Fisheries, Vincent Ssempijja, has commended the private sector for their contribution to the development of the oil palm sector in Uganda. The minister made the remarks in Buvuma while launching oil palm growing on the island.

“The private sector is playing a critical role in the development of our country with the extension of oil palm growing to Buvuma. Through this extension, smallholder farmers on this island will be able to get themselves out of poverty while at the same time reducing the country’s import bill,” Ssempijja said.

He urged out growers to ensure that they utilize the land not dedicated to growing oil palm to growing food. “Ensure that you grow food on the land that the project hasn’t acquired so that you have food as you wait for the time to harvest oil palm,” he said.

He thanked the landlords in Buvuma including the Kingdom of Buganda for embracing the project. “I am grateful that the landlords among them the Kingdom of Buganda have given their land for oil palm growing in Buvuma,” he said.​ PMLDaily

Cameroon - ​CDC to build two palm oil and rubber production plants
 State-owned agribusiness Cameroon Development Corporation (CDC) is currently fine-tuning two projects for the construction of two rubber and palm oil production plants. This is revealed in the call for expression of interests recently issued by the company to recruit a consultant that will carry out the projects’ environmental impact assessment. According to the call, the palm oil production plant will be built in Idenau, in the Southwest, while the rubber production plant will be built in Pendamboko, in the Littoral region.

The launch of the two projects proves that the agribusiness company is gradually recovering from its woes caused by the Anglophone crisis. Indeed, CDC is undoubtedly one of the companies that suffered the most from the ongoing socio-political crisis that started in late 2016 in the Anglophone regions.

During the crisis, separatist militia transformed the company’s plantations into training grounds. Workers found on the plantations were either raped, violated, or killed, while processing and storage plants were simply set ablaze. BusinessInCameroon

Malaysia eyes fresh free trade talks with EU
As the EU secures trade deals with Southeast Asian nations, Malaysian industry groups are pushing to restart trade talks. Experts say a free trade agreement would boost post-pandemic recovery in both regions.

After having secured free-trade deals with Vietnam and Singapore, the European Union's sights are set on concluding more bilateral trade deals in Southeast Asia. In recent months, as the region's economies continue to be battered by a spike in COVID-19 infections, Thailand and the Philippines have expressed interest in restarting talks, while ongoing negotiations with Indonesia are moving forward.

Now, there also appears to be some progress over a free-trade pact with Malaysia, after two key industry groups last month announced that they will work together to lobby both Brussels and Kuala Lumpur to restart talks that broke down in 2012.  

Talks over a free-trade agreement began in 2010 but stalled two years later, after seven rounds, at the request of Malaysia. A "stocktaking exercise" was carried out by both sides in 2016, but Kuala Lumpur decided against restarting trade talks. DeutscheWelle

Malaysia - ​Envoy says Malaysia-Italy trade relations on solid ground
KUALA LUMPUR, May 10 — Italy’s Ambassador to Malaysia Cristiano Maggipinto is positive that bilateral trade between Italy and Malaysia will flourish this year despite the setbacks caused by the ongoing Covid-19 pandemic.


He pointed out that in 2020, trade between the two countries recorded a contraction of only 7.5 per cent, lower than the 11.6 per cent decline registered in the overall trade between Italy and the Asean region.

Malaysia’s exports to Italy also had a very slight contraction of 2.1 per cent last year.

“According to international reviews and figures, not only Malaysia, but also the entire region will probably be the first to return to growth after the pandemic.​ MalayMail

Sri Lanka - ​Palm oil dispute with Indonesia, Malaysia resolved- Minister
Dispute was settled since Sri Lanka agreed to permit imports of refined, quality palm oil

Trade Minister Bandula Gunawardane said the dispute with Malaysia and Indonesia over the ban on palm oil imports were resolved after coming to an agreement to permit  quality, refined palm oil into the country.   

 The Minister told Daily Mirror that the envoys of the two countries called on him and raised objections to the ban. He said the two envoys cited the ban as a violation of the World Trade Organisation Agreement.  

However, the Minister said the dispute was settled since Sri Lanka agreed to permit imports of refined, quality palm oil.   

Both Malaysia and Indonesia are friendly countries. We could resolve the matter. We seek further cooperation with these countries. In fact, we are ready to negotiate a Free Trade Agreement (FTA) with Indonesia,” he said. DailyMirrorLK

Nigeria - ​Adewole: How Nigeria Can Earn $20bn from Oil Palm Annually
The Managing Director/Chief Executive Officer, Okitipupa Oil Palm Plc, Mr. Taiwo Adewole yesterday asked the federal government to set up Oil Palm Development Trust Fund in partnership with producing states as a strategy to earn $20 billion from oil palm production annually.

Adewole, a member of the Nigerian Oil Palm Growers Association (NOPGA), noted that the development fund would help states with comparative advantages to increase oil palm production to the country’s needs and export to other countries that were not self-sufficient.

He made the recommendation at a session with THISDAY at the weekend, disclosing that Nigeria “still imports 25% of its national requirements annually rather than being a leading exporter of oil palm globally.”

The Central Bank of Nigeria (CBN) had revealed that Nigeria could make above $20billion annually from cultivation and processing of palm oil if it maintained its market dominance in the palm oil industry. ThisDayLive

Nigeria - ​Poisonous junk! : Fast food exposes more Nigerians to heart disease

• Govt must take on food giants, outlaw trans fats – Experts
• How influx of ‘bad’ cooking oil destroys consumer health, economy
• Nigerian palm oil as better alternative

 But while other countries have taken a giant step to eradicate trans fat via legislation, Nigeria is still at the drafting stage of its laws.

Dr. Akinroye revealed that out of about 150 package vegetable oils on supermarkets’ shelves in the country, less than 10 of the products have been certified by the Foundation and most of them do not carry label detailing its content.

With multinational junk food outlets and mega supermarkets springing up daily in Nigerian cities, Akinroye, said packaged foods, oil and fats that have been rejected in their countries due to proper legislation and monitoring, have found their way on to shelves in Nigeria, where there are no laws against trans fat.​ TheNationOnlineNG

Sri Lanka - ​Slump in imports trigger surge in coconut oil prices
With the drastic drop in imports, coconut oil prices in the market have surged to a new high as local production is grossly insufficient to meet the annual consumption of around 200,000 metric tons, industry officials said.

In 2020, local coconut oil production was a negligible 20,000MT, which translated into a yawning gap that had to be bridged by importing 180,000MT, they said.

“This has been the position over the past few years as dominant imports dwarfed local supplies”, they pointed out.

The ban on the import of palm oil has also compounded the issue as customers will now have to depend wholly on coconut oil resulting in inevitable pressure on the demand curve, they pointed out.

Prices have soared with a 750ml bottle of coconut oil fetching Rs. 550-600 in the local market, they said, while predicting the upward trend to continue due to short supply.​ IslandLK

Sri Lanka - Government expected to reverse yet another ban on imports. Fertilizers, as industries complain
Even by what these proponents say, this overnight ban and what is being envisaged by the Government is a humongous task, a revolutionary reform in the country’s agricultural policy.

The critics are many. They are equally adamant that this is a mistake that could have disastrous consequences for the country and its people. Without a proper discourse, and without proper alternatives to supplement the absence of chemical fertiliser and minus any safety net, they argue that it could lead to a potential drop in domestic food production which will result in the need for food imports, which, in turn, would contribute to draining out larger sums of scarce foreign currency.

One of the main reasons they attribute to the problem of fertiliser usage is the poor quality of cheap fertiliser imports so that Governments can give a subsidy. Another is the wrongful and indiscriminate application of fertiliser partly due to the free subsidy and partly due to bad nutrient management by farmers not well briefed on the subject.​ SundayTimesLK

Malaysia to collect nearly RM300m from windfall tax on palm oil in 1Q21
KUALA NERUS (May 8): The government is expected to earn RM295 million in windfall profit tax in the first three months of this year with crude palm oil (CPO) prices rising above RM2,500 a tonne.

Plantation Industries and Commodities Minister Datuk Dr Khairuddin Aman Razali said this was a positive development amid the lower revenue problem faced by the country due to the effects of the Covid-19 pandemic.

He said his ministry estimated that the government would collect an even bigger windfall profit levy for the three months that followed should CPO prices, which have surpassed RM4,000 per tonne, remain at that level.

“Although we do not expect CPO prices to last at RM4,000 per tonne, we forecast they would average at between RM3,500 and RM3,800 per tonne based on the rising trend in March, April and May. 

"If this were to continue, the government would gain an even higher revenue which would be given back to the people,” TheEdgeMarkets

Sri Lanka - ​Govt. starts issuance of special licences for import of RPD palm olein
- LCMA and ACBOA request Import and Export Controller to nominate ‘credible’ importer to cater to SMEs and bakeries
- Industry hints at possible price hike in products towards end of the month

The Government has started the issuance of special licences for the import of ‘RPD palm olein,’ a key ingredient for bakery, confectionery and food processing industries.

The Lanka Confectionery Manufacturers’ Association (LCMA) and All Ceylon Bakery Owners’ Association (ACBOA) welcomed the Government’s decision to issue a special licence to resolve the national crisis.

Already four LCMA members — two extra-large and two large-scale enterprises – have obtained the special licence to import ‘RPD palm olein’.

However, to cater to the Small and Medium-scale Enterprises (SMEs) and bakeries, LCMA and ACBOA have requested the Import and Export Controller to nominate a ‘credible’ importer or a refinery to import the required palm oil for manufacturing purposes.​ FinancialTimesLK

Germany - Munich Airport sets a course for sustainable aviation
Munich Airport sets a course for sustainable aviation

Sustainable aviation fuel (SAF) will be used to refuel aircraft at Munich Airport from June.

SAF will now be delivered, stored and refuelled at the German airport, provided it meets the relevant quality specifications for Jet-A1 aviation fuel. The tank farm, which is supplied with fuel by various oil companies on behalf of the airlines, is also permitted to receive deliveries of SAF blends.

Munich Airport is the owner of the entire tank infrastructure, which extends from the tank farm via a 17-kilometre underground pipeline system to the aircraft parking positions.
Skytanking Munich is the operator of the tank farm and is responsible for the fuelling of the aircraft, together with other providers of fuelling services.

"By approving our refuelling facilities for SAF, we are enabling airlines to reduce their CO2 emissions on flights from Munich by using sustainable aviation fuels. ‘Green fuels’ have a key role to play on the way to a complete decarbonisation of air transport. BiofuelsNews

Global - ​As pollution worsens there is a growing need to move to biofuel sources
Pollution and air quality have been a major issue for discussion in various countries.

In Pakistan, urbanisation and industrialisation have led to an increase in vehicle and factory emissions.

Air pollution is strongly linked to health issues and according to (WHO, 2018), it is a major cause of various deadly diseases such as cancer, respiratory and cardiovascular illness, leading to an annual mortality rate of 4 million deaths. With such dreadful consequences, the search for alternative fuels has begun. Biofuels (such as biodiesel and bioethanol) have emerged as a renewable candidate to replace fossil fuels.
​
Biodiesel is produced via the transesterification of long chain fatty acids to an alkyl, in the presence of a catalyst.
This process was first described by George Chavanne in 1937, when he successfully replaced the glycerol in a triacylglycerol molecule with methanol; producing 3 molecules of fatty acid methyl esters which came to be known as biodiesel.
Both complete biodiesel and biodiesel-petroleum blends can successfully run diesel combustion engines. This makes it suitable to use in cars, buses, and heavy trucks. BiofuelsNews

Global - ​SUGAR CUTS BRING CARBON GAINS
Meat and dairy are front and centre when it comes to the impact food production has on the planet. Palm oil and soya have also remained in the spotlight. But could attention soon turn to sugar? Experts at AI data firm Spoonshoot think so.

“[…] sugar crops are increasingly becoming unviable in an era when environmental and climate issues are at the forefront of everyone’s minds,” according to a new report, Sugar reduction: a bittersweet pill.

The report makes reference, in particular, to the quantities of water required to produce sugarcane and sugar beet.

However, it also points to the many food and drink companies that are currently ramping up their efforts to commit to, and plan for, net-zero. In doing so, they will begin to scrutinise their ingredients, including sugar. This could provide a further boost for alternatives.

“As ingredients used in the production of other foods, companies may look to [sugar alternatives] as a means to bring down their own carbon footprint, which in turn, can be communicated to consumers.” FoodserviceFootprint

Brazil - ​Aldi, Tesco and Lidl among retailers warning Brazil over Amazon rainforest protections
Brazil's government is under pressure. Not from its own people, nor a foreign power, but from a group of European retailers.

Companies including Aldi, Lidl, Tesco, Metro and Ahold Delhaize are threatening to stop buying agricultural products from the country unless a law they say threatens the country's rainforest is changed.

The businesses form part of a group of 40 signatories to an open letter to lawmakers in Brasilia highlighting their commitment to sourcing products sustainably.

One of the key proposals that has caused concern is a provision to confirm the transfer of public land occupied by private individuals or corporations since 2012. 

"The Brazilian government are proposing a law that would provide an amnesty to those people who had previously been engaging in illegal logging, land grabs and deforestation of the Amazon and ... we feel that would have a hugely detrimental impact on one of the most ... biodiverse areas of the world," Peter Andrews, head of sustainability at the British Retail Consortium, which also backed the letter, told CGTN Europe.
​

GLOBAL - ​Six Reasons Asia's Oil Refiners Aren't Going Away Anytime Soon
Predictions of peak oil and the impending demise of fossil fuels will hit Asian oil refiners especially hard. The region is home to three of the top four oil-guzzling nations, and more than a third of global crude processing capacity. Yet, Asian refiners are expanding at a breakneck pace, even building massive new plants designed to run for at least half a century.

What is going on?

“Asia is going to be the center of global activity and hence the choices that are being made in Asia about pioneering cleaner technology development, or not, are very important,” said Jeremy Bentham, vice president of global business environment at Royal Dutch Shell Group. “Economic development is going to be very Asian centered, hence the consumption of energy will be very Asian centered and hence then the opportunity to take a lead in deploying clean technologies is there.” Bloomberg

Malaysia - ​BNM Finalises ‘Climate Change and Principle-based Taxonomy’
The document introduces a progressive system of transition categories to acknowledge concrete efforts and commitments by businesses to adopt sustainable practices.

BNM (Bank Negara Malaysia) has issued a finalised guidance document for financial institutions to use to assess and classify economic activities that contribute to climate change mitigation and adaptation.

In December 2019, the central bank issued a discussion paper providing an overview of climate change and its impact to the financial system, including a draft principle-based taxonomy.

Having received written feedback on the discussion paper, BNM has been working with the JC3 (Joint Committee on Climate Change) Risk Management Sub-Committee to incorporate the feedback and enhance the discussion paper.

On Friday (30 April), BNM released the final issuance of the ‘Climate Change and Principle-based Taxonomy’ (CCPT) guidance document, which aims to:​ RegulationAsia

China - ​Chinese banks accused of funding deforestation around world
Report undermines Beijing’s drive to be seen as global leader in climate change campaign

Chinese banks are the second largest financers of commodities implicated in tropical rainforest deforestation, according to research that casts doubt on Beijing’s ambitions to be a global leader in the fight against climate change.

Data analysed by Forests & Finance, a global coalition of non-governmental organisations, showed that from January 2016-April 2020, Chinese institutions provided $15bn in loans and underwriting services to companies that traded in commodities linked to deforestation in south-east Asia, Brazil and Africa.

Chinese companies involved in trading pulp and paper, palm oil, soy, rubber and timber largely operate overseas and are often funded by Chinese banks, highlighting the international footprint of the country’s financial sector. Brazil accounted for the largest amount of funding linked to deforestation, but most of the loans were made within the country. FinancialTimes

Liberia - ​US$1.1M USAID Grant for Smallholder Palm Farmers
Liberia’s J-Palm, Ghana’s 8 Degrees North team up to support palm farmers in Liberia, Ghana

The Chief Executive Officer (CEO) of J Palm Liberia, Mahmud Johnson says smallholder palm farmers in Liberia will now have attractive prices for their products, as a result of a US$1.1 million dollar grant provided by the United States Agency for International Development (USAID) to support an alliance that gives smallholder farmers access to the growing organic palm market.

He made the disclosure to the Daily Observer, recently in an exclusive interview at his office in Paynesville, outside Monrovia.

The USAID-funded West Africa Trade & Investment Hub (Trade Hub) awarded the $1.1 million co-investment grant to 8 Degrees North, a Ghanaian palm oil processing company, to support smallholder farmers in West Africa to access the growing market for organic palm oil in the United States.​ LiberianObserver

DRC - ​World Bank and Republic of Congo Sign Agreement to Reduce Carbon Emissions and Preserve Forests
The US$41.8 million agreement will help diversify economic growth while reducing pressures on forests

BRAZZAVILLE, May 3 2021 -The Republic of Congo has signed a landmark agreement with the World Bank’s Forest Carbon Partnership Facility (FCPF) that will unlock up to US$41.8 million for reducing emissions from deforestation and forest degradation and increasing carbon sequestration-commonly known as REDD+. This Emission Reductions Payment Agreement (ERPA) will reward efforts to reduce 8.4 million tons of carbon emissions through 2025 under the Republic of Congo’s ambitious emission reductions program.

“This agreement marks an important step toward a more sustainable forestry sector in the Republic of Congo. The results-based payments generated by the ERPA will incentivize companies, communities, and the government,” said Abdoulaye Seck, Country Director, Republic of Congo. “Our shared goal is to balance the economic and environmental benefits of this precious resource now and for generations to come,” MirageNews

New Zealand - ​PKE: good or bad? NZ farmers take on Greenpeace
Greenpeace says the New Zealand government should step in and stop this country's dairy industry from using or PKE as a supplementary feed.

The environmental group says New Zealand dairy farmers constitute the biggest export market for PKE from Indonesia, but that this continued use of the palm oil by-product is one of the ways that intensive dairying is fuelling the climate crisis.

But Federated Farmers has dismissed the Greenpeace claims, saying PKE is needed.

Andrew Hoggard said PKE is not the culprit and he points to the dozens of supermarket products that contain palm oil.

He said PKE is a tiny fracton of the earnings made by palm oil companies after they clear the forest and plant the palms, "prior to farmers using it it was either piled up or burnt - the other big user of it is bio-energy in Europe".

"So I definitely think there is a concern around unsustainable practices but I wouldn't pin this whole thing on the New Zealand dairy industry which is what Greenpeace seems to be wanting to do, " Hoggard said. RNZ

Colombia - ​Colombian palm growers ask to adjust tax reform because it discourages investment and progress in agriculture
 Jens Mesa Dishington, Executive President of Fedepalma, considers that “the proposals to tax agricultural inputs and services limit the modernization of agriculture, discourage the investments necessary to close the country's productivity gaps and generate incentives for the importation of food, in addition to represent an extra cost for many producers, which will surely be reflected in a general increase in food prices ”.
* The request of the palm growers union is that agriculture be considered as one of the key sectors to lead the economic reactivation and generate rural employment. 

Taxing the economy in the way the Government proposes does not solve fiscal problems, but rather deepens them by directly affecting household income, workers' wages and the generation of wealth in companies. In other words, it would affect the economy in general and, therefore, its productive and tax capacity in a sustainable and supportive way, ”stated the union spokesperson in a letter sent to the Minister of Finance and Public Credit, Alberto Carrasquilla Barrera, on the Bill and tax reform "Sustainable Solidarity Law". Fedepalma

Malaysia - ​MPIC to introduce application to facilitate oil palm transactions
KUALA NERUS: The Ministry of Plantation Industries and Commodities (MPIC) will introduce an application to facilitate oil palm transactions, and further prevent any fraudulent activities, which includes weighing the fruit.

Minister Datuk Dr Mohd Khairuddin Aman Razali said the application could detect oil palm from the planting stage in the plantation to the transaction stage to licensed buyers until the final stage of the use of the oil palm.

“This application is like the RRIMniaga smartphone application for rubber transactions. All the processes involved in oil palm from the beginning to the final stage are being systematised in this application.

“We have tried to use the application recently in an area in Johor.

For example, we can detect if the fruit (oil palm) sold is stolen. From the system we will know it was stolen because the stolen fruit would not exist on record,“ TheSunDailyMY

India - ​“Govt policies not favourable for oilseeds; FSS Act copied & pasted from USA, Europe”
India's oil imports have dwindled this year. Comment.

India’s edible oil imports dwindled this year on account of good Indian crop of groundnut, soyseed, rmseed, and ricebran oil.

India wants to be self-sufficient in oils but is still not able to. What are the issues?
​
Government policies are not favourable for cultivation of oilseeds. No support from government for cultivation of oilseeds, non-awareness in farmers for cultivation of oil seeds.

Imported oils are cheaper than Indian oils. India is not self-sufficient in edible oils as it is not fully utilising the resources available, e.g., India’s rice production is highest in the world but we are not utilising rice bran entirely for the production of rice bran oil. Likewise because of various many reasons, India is not self-sufficient in oils.​ FNBNews

​Sri Lanka’s vanaspathi exports to India plummet
Sri Lanka’s vanaspathi export industry (fully or partially hydrogenated vegetable cooking oil) established to cater to the needs of India under the Free Trade Agreement has been adversely affected following the ban imposed on crude palm oil (HS Code1511.10) by the government.

Thirteen companies engaged in the production of vanaspathi using palm oil for the Indian market are on the verge of collapsing, several leading members of the Vanaspathi Exporters Association told the Business Times.

The palm oil containers imported to the island on April 7 for reshipment to India after processing it in local factories, along with relevant shipment, were held up without clearance at the Colombo port since April 7 the day after the import ban they complained.

The importers had to pay large sums of money as demurrage and customs surcharges due to the delay in clearance of containers without their fault; they said adding that there has been no production of vanaspathi for the past two months.

The 13 factories with around 5000 workers are set to close down operations as it has to cancel all forward import contracts with palm oil suppliers. SundayTimesLK

Sri Lanka - ​Palm oil ban blamed on protectionism, BOP balancing act
Sri Lanka has come under a global purview in the wake of the country’s ban on importing and producing palm oil as a number of countries raised concerns over these actions by the government in a move to curb the use of the edible oil.

Wayamba University Agriculture and Plantation Faculty, Plantation Management Department Chair Professor, Prof. Asoka Nugawela responding to the queries by the Business Times said that the ban imposed by the government on importing palm oil is likely to die a natural death as it is raw material required for manufacturers and in this respect there could be some adjustments made in bringing down the product. He made these observations at a virtual roundtable this week on ”Sustainability Challenges in Palm Oil Sector in South Asia”, organised by the Council of Palm Oil Producing Countries (CPOPC).

However, pointing out the concern of forced uprooting of palm oil plantations he said, “We will have to change the mindsets of the politicians of the country and we will need to educate them on the correct aspects of palm oil.”​ SundayTimesLK

Canada - ​Canola exports to the European Union could be on the rise
Saskatchewan farmers are looking at improved prospects for canola sales to the European Union.

The EU is phasing out the use of palm oil in biofuel because of concern over the destruction of forests for palm plantations in Asia.

Brian Innes with the Canola Council of Canada says the European Union is also worried about the use of soybean oil from deforested areas of the Amazon.

Canadian canola has a much better environmental reputation and Innes says it’s important that be maintained to ensure ongoing and improving sales to the European Union.

The EU biodiesel and renewable diesel sectors consumed an estimated 6.1 million tonnes of canola/rapeseed in 2020.
​620CKRM

Asian biodiesel producers sense EU opportunity
Asian biodiesel producers are eyeing potential openings in an European market beset by tightening supplies and record-high prices, although they may struggle to capitalise fully on the opportunity.

Surging vegetable oil costs have battered margins and reduced production in Europe, while a steep backwardation on these raw materials — with prompt prices at a premium to forward values — is deterring them from adjusting their output higher.

Rapeseed oil prices are hovering around highs of just under $1,200/t fob Dutch mills, sending RED Fame 0 values up by $140/t since 19 April to an all-time record $1,458-1,468/t fob Amsterdam-Rotterdam-Antwerp (ARA) yesterday. This is despite Covid-19 lockdowns having depressed demand. ArgusMedia

Ryanair and Trinity to explore flying planes on alcohol and plant-based fuel
RYANAIR is asking scientists to investigate if it can fly planes on alcohol.

The airline has given €1.5m to Trinity College to carry out the research, which will also examine the potential of vegetable oils and plant waste.

Ryanair has set a target of running one in eight flights on sustainable fuels by 2030 as pressure mounts on airlines to green their operations.

Dr Stephen Dooley will head up a team of six at the newly established Ryanair Sustainable Aviation Research Centre.

He said the ultimate aim was to replace all 96 billion gallons of fossil fuels used by the global aviation industry annually. IndependentIE

Belgium - ​Why Belgium's New Biofuel Law Jeopardizes the EU's Sustainability Goals
There is no denying the EU has a problem with deforestation. A recent WWF report called Europe the largest importer of tropical deforestation after China, comprising 16 percent of global deforestation. Only eight countries in Europe—Belgium included—contribute to 80 percent of the EU's total footprint.

Beginning 2022, Belgium will ban palm oil and soy as a biofuel—two commodities implicated in deforestation. Neither of these vegetable oils will be featured in the Belgian market or transportation sector, meaning Belgians will need to find alternatives.

While bans on specific commodities are understandable—though this would be more apt for beef, which is responsible for several times the emission rates as palm oil, yet faces minimal regulations—this jeopardizes the opportunity for EU countries to influence sustainability practices abroad, hold supply chains accountable, reward good practice and enforce due diligence.​ Newsweek

Indonesia - ​ANALYSIS-Kindled by 2015 fires, Indonesia thinks big on forest protection
The Southeast Asia haze crisis pushed Jakarta to adopt a more joined-up conservation approach to reduce land clearing and the risk of fires, with deforestation now declining for four years in a row.

KUALA LUMPUR, April 30 (Thomson Reuters Foundation) - As forest fires raged in Indonesia six years ago, a thick, toxic smoke haze drifted across Southeast Asia that would lead to more than 100,000 premature deaths, destroy huge swathes of forest and threaten endangered orangutans.

In the aftermath, environmentalists and governments, both regional and local, demanded action from Jakarta, forcing a policy reset that last year helped the country achieve a fourth straight year of declines in deforestation.

Bimo Dwisatrio, a senior research officer at the Center for International Forestry Research (CIFOR), said the 2015 crisis was a political game-changer for forest governance under Indonesian President Joko Widodo, popularly known as Jokowi. ThomsonReuters

Southeast Asia - ​There is hope for South-East Asia’s beleaguered tropical forests
No ecosystem is more important in mitigating the effects of climate change than tropical rainforest. And South-East Asia is home to the world’s third-biggest patch of it, behind the Amazon and Congo basins.

Even though humans release carbon from these forests through logging, clear-felling for agriculture and other disruptions, some are so vast and fecund that the growth of the plants within them absorbs even more from the atmosphere. The Congo basin, for instance, locks up 600m tonnes of carbon a year more than it releases, according to the World Resources Institute (wri), an international ngo that is equivalent to about a third of emissions from all American transport. The Amazon, too, remains a net absorber (though four years of massive fires and clearing for cattle have brought it to a tipping-point). In contrast, such is the extent of clearing for plantations in South-East Asia’s rainforests, which run from Myanmar to Indonesia, that over the past 20 years they have turned from a growing carbon sink to a significant source of emissions—nearly 500m tonnes a year. Economist

Malaysia clinches major oil palm deal with Saudi Arabia
KUALA LUMPUR, April 30 — In what is seen as a major breakthrough for Malaysia, Saudi Arabia will become Malaysia’s hub for the import and distribution of palm oil and palm oil related products into the lucrative Gulf Cooperation Council (GCC) and the Middle East and North African (MENA) markets.

International Trade and Industry Minister Datuk Seri Mohamed Azmin Ali said the oil-rich kingdom of Saudi Arabia would also increase the import of palm oil and related products from Malaysia.

Malaysia would also look into the setting up of palm oil refinery and processing plants in the region, he wrote in his twitter account, highlighting the highly-successful outcome of his trade and investment mission to Saudi Arabia. MalayMail

Pakistan - Asian palm oil alliance proposed to safeguard stakeholders
KARACHI: Stakeholders from around the world on Thursday suggested forming an ‘Asian Palm Oil Alliance’ to protect producers and consumers from an ongoing global smear campaign against this edible oil.


A proposal to this effect was endorsed by speakers from India, Malaysia, Sri Lanka, and European countries in a virtual seminar titled “Sustainability challenges in palm oil Sector in South Asia”.

The discussion was attended by more than 100 participants from around the globe. Ironically, no speaker from Pakistan, which is a major stakeholder and consumer of palm oil in South Asia, participated in the event. TheNewsPK

Sri Lanka - ​Palm Oil Ban in Sri Lanka: Is it Sustainable?
Sri Lanka’s edible oil market has received considerable attention in recent weeks due to a series of events: the banning of palm oil importation in a bid to promote the coconut industry, detection of aflatoxins in imported coconut oil, importation of coconut kernel chips, issuing license for palm oil imports, and banning of oil palm cultivation.

The edible oil industry is important for Sri Lanka. Oils and fats are a major constituent of the typical Sri Lankan diet and a raw material in manufacturing, in particular the food manufacturing industry. According to the latest available data, there are around 5,057 establishments employing 332,828 workers in the formal food manufacturing sector which generate an annual output of approximately LKR 1.4 billion. This blog assesses the local edible oil market and its potential for import substitution. IPSLK

For all the news on palm oil. CSPO Watch. Eye on Sustainable Palm Oil.