Palm Oil News - August 2024
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For all the news on the global palm oil industry. August 2024
Makin' it easy for you to monitor developments in the palm oil industry
For all the news on the global palm oil industry. August 2024
Makin' it easy for you to monitor developments in the palm oil industry
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August 31, 2024
Indonesia and Malaysia to Defend Palm Oil Industry Against EUDR in Brussels Talks
Indonesia is intensifying its efforts to counter the European Union’s Deforestation-Free Regulation (EUDR), which aims to block products linked to deforestation from entering the European market.
Indonesia and Malaysia, two of the biggest palm oil producers, will send a delegation to Brussels in September 2024 to negotiate with the EU, addressing concerns that the regulation unfairly targets Indonesian palm oil and other forestry products.
Eddy Martono, Chairman of the Indonesian Palm Oil Association (Gapki), underscored that Indonesia will not stand idly by.
“The government is fully supporting us to ensure that the implementation of the EUDR does not place an undue burden on us. We are set to travel to Brussels in September for a Joint Task Force (JTF) meeting with the European Union and Malaysia,” Martono told Beritasatu.com in Bangka Belitung on Thursday.
With the EUDR scheduled to come into effect by the end of December 2024, time is of the essence. The forthcoming Joint Task Force meeting on Sept.12, will be the third such meeting, following prior discussions on Aug. 4, 2023, and Feb. 2, 2024, with Indonesia, Malaysia, and the EU. UKR AgoConsult
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European biofuel feedstock market at a standstill with activity expected to resume in 2025
The slowdown in animal fats demand was caused by various reasons, including the oversupply of feedstocks, cheap biofuels tickets and negative production margins, sources told Fastmarkets Wednesday
Trading for biofuel feedstocks has been unusually slow in recent months, with sources referring to fourth-quarter animal fats demand as “non-existent” and expecting activity to resume in early 2025.
“The storage is full, biofuels producers show zero interest, as there are plenty of tickets available at lower prices, and production margins have been unsupportive lately,” a source said.
The reason for higher ticket availability is a recent change in Dutch legislation, Fastmarkets understands, where the Dutch Emission Authority cut the Renewable Energy Units (HBE) carryover cap to 10% for 2025, from the current record-high 25%.
This change led to many in the industry hurrying to sell excessive certificates, flooding the market.
Besides biofuels producers, other animal fats-consuming industries have also shown less buying interest, with oleochemical market buyers holding back from buying fats despite expensive prices for crude palm oil (CPO) and other vegetable oils.
‘Room for price negotiation’
Recent CPO trades to Europe were reported at $1,067.50 per tonne CIF Rotterdam for September shipment and $1,075 per tonne CIF for October.
Pet food producers also stayed away from actively booking volumes for the fourth quarter, expecting a further price drop.
“There is quite some room to negotiate with the suppliers, and they seem to accept,” a source told Fastmarkets.
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India-NITI Aayog’s Strategies for Growth in Edible Oils
Recently, a report titled “Pathways and Strategies for Accelerating Growth in Edible Oils towards Goal of Atmanirbharta” was released by NITI Aayog.
The report analyses the current edible oil sector, outlines its future potential, and provides a detailed roadmap to address challenges, aiming to close the demand-supply gap and achieve self-sufficiency.
What are the Key Highlights of the Report?
Oilseed Production and Area: Nine major oilseed crops (groundnut, rapeseed-mustard, soybean, sunflower, sesame, safflower, niger seed, castor and linseed) cover 14.3% of the gross cropped area, contributing 12-13% to dietary energy and about 8% to agricultural exports.
Soybean leads with 34% of total oilseed production, followed by rapeseed-mustard (31%) and groundnut (27%).
Regional Production Distribution: Rajasthan and Madhya Pradesh are the top producers, each contributing about 21.42% of national production.
Gujarat (17.24%) and Maharashtra (15.83%) also play major roles.
Rising Consumption and Import Dependence: Per capita consumption (over the last decade) of edible oil has surged to 19.7 kg/year.
Domestic production meets only 40-45% of the demand,overall consumption surged, leading to increased imports from 1.47 MT (million tonne) in 1986-87 to 16.5 MT in 2022-23, raising the import dependency ratio to 57%.
Palm oil dominates these imports, accounting for 59%, followed by soybean (23%) and sunflower (16%).
Growth Trends: From 1980-81 to 2022-23, oilseed area, production, and yield grew at rates of 0.90%, 2.84%, and 1.91%, respectively.
In the recent decade, production and yield growth rates improved to 2.12% and 1.53%. The area under oilseeds increased in all decades except 1991-2000.
The report projects that production of the nine major oilseeds will rise to 43 MT by 2030 and 55 MT by 2047, up from 37.96 MT in 2021-22 under the Business as Usual (BAU) scenario.
Approaches for Demand Forecasting:
Static/Household Approach:
Uses population projections and baseline per capita consumption data.
Assumes short-term static consumption behavior.
Projects a demand-supply gap of 14.1 MT by 2030 and 5.9 MT by 2047. Drishtiias
Indonesia and Malaysia to Defend Palm Oil Industry Against EUDR in Brussels Talks
Indonesia is intensifying its efforts to counter the European Union’s Deforestation-Free Regulation (EUDR), which aims to block products linked to deforestation from entering the European market.
Indonesia and Malaysia, two of the biggest palm oil producers, will send a delegation to Brussels in September 2024 to negotiate with the EU, addressing concerns that the regulation unfairly targets Indonesian palm oil and other forestry products.
Eddy Martono, Chairman of the Indonesian Palm Oil Association (Gapki), underscored that Indonesia will not stand idly by.
“The government is fully supporting us to ensure that the implementation of the EUDR does not place an undue burden on us. We are set to travel to Brussels in September for a Joint Task Force (JTF) meeting with the European Union and Malaysia,” Martono told Beritasatu.com in Bangka Belitung on Thursday.
With the EUDR scheduled to come into effect by the end of December 2024, time is of the essence. The forthcoming Joint Task Force meeting on Sept.12, will be the third such meeting, following prior discussions on Aug. 4, 2023, and Feb. 2, 2024, with Indonesia, Malaysia, and the EU. UKR AgoConsult
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European biofuel feedstock market at a standstill with activity expected to resume in 2025
The slowdown in animal fats demand was caused by various reasons, including the oversupply of feedstocks, cheap biofuels tickets and negative production margins, sources told Fastmarkets Wednesday
Trading for biofuel feedstocks has been unusually slow in recent months, with sources referring to fourth-quarter animal fats demand as “non-existent” and expecting activity to resume in early 2025.
“The storage is full, biofuels producers show zero interest, as there are plenty of tickets available at lower prices, and production margins have been unsupportive lately,” a source said.
The reason for higher ticket availability is a recent change in Dutch legislation, Fastmarkets understands, where the Dutch Emission Authority cut the Renewable Energy Units (HBE) carryover cap to 10% for 2025, from the current record-high 25%.
This change led to many in the industry hurrying to sell excessive certificates, flooding the market.
Besides biofuels producers, other animal fats-consuming industries have also shown less buying interest, with oleochemical market buyers holding back from buying fats despite expensive prices for crude palm oil (CPO) and other vegetable oils.
‘Room for price negotiation’
Recent CPO trades to Europe were reported at $1,067.50 per tonne CIF Rotterdam for September shipment and $1,075 per tonne CIF for October.
Pet food producers also stayed away from actively booking volumes for the fourth quarter, expecting a further price drop.
“There is quite some room to negotiate with the suppliers, and they seem to accept,” a source told Fastmarkets.
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India-NITI Aayog’s Strategies for Growth in Edible Oils
Recently, a report titled “Pathways and Strategies for Accelerating Growth in Edible Oils towards Goal of Atmanirbharta” was released by NITI Aayog.
The report analyses the current edible oil sector, outlines its future potential, and provides a detailed roadmap to address challenges, aiming to close the demand-supply gap and achieve self-sufficiency.
What are the Key Highlights of the Report?
Oilseed Production and Area: Nine major oilseed crops (groundnut, rapeseed-mustard, soybean, sunflower, sesame, safflower, niger seed, castor and linseed) cover 14.3% of the gross cropped area, contributing 12-13% to dietary energy and about 8% to agricultural exports.
Soybean leads with 34% of total oilseed production, followed by rapeseed-mustard (31%) and groundnut (27%).
Regional Production Distribution: Rajasthan and Madhya Pradesh are the top producers, each contributing about 21.42% of national production.
Gujarat (17.24%) and Maharashtra (15.83%) also play major roles.
Rising Consumption and Import Dependence: Per capita consumption (over the last decade) of edible oil has surged to 19.7 kg/year.
Domestic production meets only 40-45% of the demand,overall consumption surged, leading to increased imports from 1.47 MT (million tonne) in 1986-87 to 16.5 MT in 2022-23, raising the import dependency ratio to 57%.
Palm oil dominates these imports, accounting for 59%, followed by soybean (23%) and sunflower (16%).
Growth Trends: From 1980-81 to 2022-23, oilseed area, production, and yield grew at rates of 0.90%, 2.84%, and 1.91%, respectively.
In the recent decade, production and yield growth rates improved to 2.12% and 1.53%. The area under oilseeds increased in all decades except 1991-2000.
The report projects that production of the nine major oilseeds will rise to 43 MT by 2030 and 55 MT by 2047, up from 37.96 MT in 2021-22 under the Business as Usual (BAU) scenario.
Approaches for Demand Forecasting:
Static/Household Approach:
Uses population projections and baseline per capita consumption data.
Assumes short-term static consumption behavior.
Projects a demand-supply gap of 14.1 MT by 2030 and 5.9 MT by 2047. Drishtiias
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August 30, 2024
GAPKI sees European market as less strategic for Indonesian palm oil
The Indonesian Palm Oil Association (GAPKI) has deemed the European Union to be no longer a strategic market for Indonesian palm oil products, as exports to Europe have significantly declined, citing the export volume of CPO and its derivatives to Europe now accounts for only 12 percent of the total export volume.
GAPKI’s data shows that the contribution of CPO and its derivatives exports to the European Union was only 8.12 percent, or 275,000 tons, as of June 2024. This figure is a decrease of 12.97 percent compared to the 316,000 tons recorded in May 2024.
“The export volume contribution to the European Union used to be 20 percent, but now it’s only about 12 percent per year. So, we see the European market as no longer strategic,” Edi Suhardi, Head of Positive Campaigns for GAPKI, told the CNBC Indonesia: Trade Corner Special Dialogue on Thursday, August 29, 2024.
Edi believes that the decline in demand for CPO exports from the European Union will be exacerbated by the European Union’s Deforestation Regulation (EUDR).
This regulation, set to be implemented in January 2025, will apply to seven commodities: CPO, beef, soybeans, coffee, cocoa, wood, and rubber.
In short, EUDR requires these seven commodities to be produced in an environmentally sustainable manner.
However, Edi noted that the European Union has yet to release technical guidelines or maps to be used in the implementation of EUDR.
As a result, Edi projects that the implementation of EUDR will exclude small palm oil farmers from the export market.
The majority of small palm oil farmers do not have official land ownership documents or adhere to forest area limits.
Edi also encouraged the government to promote local CPO in non-traditional markets, such as countries in Africa, the Middle East, and South Asia. He suggested that the government build new awareness for exporters to focus on targeting non-traditional markets.
“Even though the European market is no longer economically significant, local exporters still consider Europe because it has high standards, but in reality, they are pushing unreasonable regulations,” he said.
Trade Minister Zulkifli Hasan said that EUDR will not affect the performance of the national palm oil industry. The government plans to increase domestic CPO consumption through its biodiesel program.
The government has currently implemented a program that mixes 35 percent CPO with diesel, known as B35. This mixture will be increased to B40 starting January 1, 2025.
Zulkifli Hasan cited that the next government will further raise this blend to B60. In addition, the government is also experimenting with mixing CPO with aviation fuel, or avtur.
So far, the government has successfully mixed 2.4 percent CPO with avtur through the Bioavtur J.24 program. This figure is projected to be increased up to 50 percent.
“If the Bioavtur program can be implemented, the government’s CPO uptake could increase by 3 million tons. In fact, the domestic market will need a lot of CPO,” Zulkifli said. Indonesia Business Post
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EPA launches investigations into supply chains of at least two renewable fuel producers amid concerns over fraudulent feedstocks
The US Environmental Protection Agency (EPA) has launched investigations into the supply chains of at least two renewable fuel producers amid concerns that some may be using fraudulent feedstocks for biodiesel in a bid to secure government subsidies.
EPA spokesperson Jeffrey Landis told Reuters that the agency had launched audits over the past year, but declined to identify the companies involved as the investigations were ongoing.
Under an EPA administered programme, the Renewable Fuel Standard (RFS), refiners can earn a range of state and federal environmental and climate subsidies, including tradable credits.
However, following a surge in UCO exports from Asia – involving high volumes relative to the amount of cooking oil used and recovered in the region – concerns had been raised that some supplies labelled as UCO were cheaper and less sustainable virgin palm oil, the 7 August report said.
The European Union was also investigating the alleged use of fraudulent feedstocks, Reuters wrote.
The EPA audits began after the agency updated domestic supply-chain accounting requirements in July 2023 for renewable fuel producers seeking to earn credits under the RFS, Landis said.
“EPA has conducted audits of renewable fuel producers since July 2023 which includes, among other things, an evaluation of the locations that used cooking oil used in renewable fuel production was collected,” he was quoted as saying.
“These investigations, however, are ongoing and we are not able to discuss ongoing enforcement investigations.”
Against this backdrop, US senators from farming states have called for tightened biofuel feedstock monitoring and have said that federal agencies should be as rigorous in verifying imports as they were auditing domestic supply chains.
“The Biden administration has created vigorous standards to verify … American producers, and it is imperative that the same scrutiny is applied to imported feedstocks,” six US senators, led by Roger Marshall and Sherrod Brown, wrote in a 20 June letter to federal agencies.
In another letter to the Treasury Department on 30 July, 15 senators had urged the administration to exclude imported feedstocks like UCO from an additional clean fuel tax credit programme passed in the Inflation Reduction Act (IRA), Reuters wrote. OFI Magazine
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NITI Ayog shows the way to make India self-reliant in edible oil production
At present, India meets nearly 60% of its edible oil demand through imports of 16.47 million tons of edible oils valued at Rs. 1.38 lakh cores every year.
NEW DELHI: In order to make India self-reliant in edible oil production, NITI Ayog has recommended a slew of measures including the increasing of acreage of Palm oil plantation, convert cereal growing region into oilseeds, convert rice fallow area into oilseeds crops and use of better quality of seeds to bridge the yield gap.
At present, India meets nearly 60% of its edible oil demand through imports of 16.47 million tons of edible oils valued at Rs. 1.38 lakh cores every year. However, rest of demand is fulfilled through the domestic production of various oilseeds like Mustard, Groundnut, Sesame, and cotton oils.
NITI Ayog, on August 30, released a report titled "Pathways and strategies for accelerating growth in edible oils towards the goal of atmanirbharta" by Suman Bery, Vice-Chairman, in the presence of Prof. Ramesh Chand, Member, NITI Aayog.
The report highlights that over the past decades, per capita consumption of edible oil in the country has seen a dramatic rise, reaching 19.7 kg/year whereas the average per capita consumption of developed countries is 25.3kg/years. The report analyzed three different scenarios to assess the demand-supply gaps in 2030 and 2047.
The report found that the demand-supply gap is projected to be 22.3 million metric tonnes (MT) by 2030 and 15.20 MT by 2047 when consumption is capped at 25.3kg per capita. Further, if the consumption is capped at 40.3 kg per capita, the gap widens to 29.5 MT by 2030 and 40 MT by 2047.
Meanwhile, based on another Household Approach’, projections indicate a smaller demand-supply gap of 14.1 MT and 5.9 MT by 2030 and 2047, respectively.
India annually consumes around 25 million tonnes of edible oil. As per regional cuisine preference, North and East India consume mustard oil, south India consume mostly coconut oil, West India consume groundnut oil and Rajasthan consume Sesame oil.
Through “Operation Golden Flow”, India had met its 94 percent requirement of edible oil through its domestic production till 1994. Then after, it has declined due to import of cheap Palm oil.
How to mitigate gap in the supply of oilseeds
Promoting oilseeds on potential areas lost to cereals cultivation can add 7.36 MT of oilseed production. Utilizing one-third of the rice fallow area in ten states in India could be used for oilseed cultivation by 3.12 MT.
Adoption of good quality seeds to bridge the yield gap from 12% in castor to 96% in sunflower can contribute to the country's domestic oilseed production by 17.4 MT. Rice bran offers an estimated potential of 1.9 MT of edible oil. Plantation of Palm oil can potentially increase a staggering 34.4 MT of edible oil. New Indian Express
GAPKI sees European market as less strategic for Indonesian palm oil
The Indonesian Palm Oil Association (GAPKI) has deemed the European Union to be no longer a strategic market for Indonesian palm oil products, as exports to Europe have significantly declined, citing the export volume of CPO and its derivatives to Europe now accounts for only 12 percent of the total export volume.
GAPKI’s data shows that the contribution of CPO and its derivatives exports to the European Union was only 8.12 percent, or 275,000 tons, as of June 2024. This figure is a decrease of 12.97 percent compared to the 316,000 tons recorded in May 2024.
“The export volume contribution to the European Union used to be 20 percent, but now it’s only about 12 percent per year. So, we see the European market as no longer strategic,” Edi Suhardi, Head of Positive Campaigns for GAPKI, told the CNBC Indonesia: Trade Corner Special Dialogue on Thursday, August 29, 2024.
Edi believes that the decline in demand for CPO exports from the European Union will be exacerbated by the European Union’s Deforestation Regulation (EUDR).
This regulation, set to be implemented in January 2025, will apply to seven commodities: CPO, beef, soybeans, coffee, cocoa, wood, and rubber.
In short, EUDR requires these seven commodities to be produced in an environmentally sustainable manner.
However, Edi noted that the European Union has yet to release technical guidelines or maps to be used in the implementation of EUDR.
As a result, Edi projects that the implementation of EUDR will exclude small palm oil farmers from the export market.
The majority of small palm oil farmers do not have official land ownership documents or adhere to forest area limits.
Edi also encouraged the government to promote local CPO in non-traditional markets, such as countries in Africa, the Middle East, and South Asia. He suggested that the government build new awareness for exporters to focus on targeting non-traditional markets.
“Even though the European market is no longer economically significant, local exporters still consider Europe because it has high standards, but in reality, they are pushing unreasonable regulations,” he said.
Trade Minister Zulkifli Hasan said that EUDR will not affect the performance of the national palm oil industry. The government plans to increase domestic CPO consumption through its biodiesel program.
The government has currently implemented a program that mixes 35 percent CPO with diesel, known as B35. This mixture will be increased to B40 starting January 1, 2025.
Zulkifli Hasan cited that the next government will further raise this blend to B60. In addition, the government is also experimenting with mixing CPO with aviation fuel, or avtur.
So far, the government has successfully mixed 2.4 percent CPO with avtur through the Bioavtur J.24 program. This figure is projected to be increased up to 50 percent.
“If the Bioavtur program can be implemented, the government’s CPO uptake could increase by 3 million tons. In fact, the domestic market will need a lot of CPO,” Zulkifli said. Indonesia Business Post
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EPA launches investigations into supply chains of at least two renewable fuel producers amid concerns over fraudulent feedstocks
The US Environmental Protection Agency (EPA) has launched investigations into the supply chains of at least two renewable fuel producers amid concerns that some may be using fraudulent feedstocks for biodiesel in a bid to secure government subsidies.
EPA spokesperson Jeffrey Landis told Reuters that the agency had launched audits over the past year, but declined to identify the companies involved as the investigations were ongoing.
Under an EPA administered programme, the Renewable Fuel Standard (RFS), refiners can earn a range of state and federal environmental and climate subsidies, including tradable credits.
However, following a surge in UCO exports from Asia – involving high volumes relative to the amount of cooking oil used and recovered in the region – concerns had been raised that some supplies labelled as UCO were cheaper and less sustainable virgin palm oil, the 7 August report said.
The European Union was also investigating the alleged use of fraudulent feedstocks, Reuters wrote.
The EPA audits began after the agency updated domestic supply-chain accounting requirements in July 2023 for renewable fuel producers seeking to earn credits under the RFS, Landis said.
“EPA has conducted audits of renewable fuel producers since July 2023 which includes, among other things, an evaluation of the locations that used cooking oil used in renewable fuel production was collected,” he was quoted as saying.
“These investigations, however, are ongoing and we are not able to discuss ongoing enforcement investigations.”
Against this backdrop, US senators from farming states have called for tightened biofuel feedstock monitoring and have said that federal agencies should be as rigorous in verifying imports as they were auditing domestic supply chains.
“The Biden administration has created vigorous standards to verify … American producers, and it is imperative that the same scrutiny is applied to imported feedstocks,” six US senators, led by Roger Marshall and Sherrod Brown, wrote in a 20 June letter to federal agencies.
In another letter to the Treasury Department on 30 July, 15 senators had urged the administration to exclude imported feedstocks like UCO from an additional clean fuel tax credit programme passed in the Inflation Reduction Act (IRA), Reuters wrote. OFI Magazine
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NITI Ayog shows the way to make India self-reliant in edible oil production
At present, India meets nearly 60% of its edible oil demand through imports of 16.47 million tons of edible oils valued at Rs. 1.38 lakh cores every year.
NEW DELHI: In order to make India self-reliant in edible oil production, NITI Ayog has recommended a slew of measures including the increasing of acreage of Palm oil plantation, convert cereal growing region into oilseeds, convert rice fallow area into oilseeds crops and use of better quality of seeds to bridge the yield gap.
At present, India meets nearly 60% of its edible oil demand through imports of 16.47 million tons of edible oils valued at Rs. 1.38 lakh cores every year. However, rest of demand is fulfilled through the domestic production of various oilseeds like Mustard, Groundnut, Sesame, and cotton oils.
NITI Ayog, on August 30, released a report titled "Pathways and strategies for accelerating growth in edible oils towards the goal of atmanirbharta" by Suman Bery, Vice-Chairman, in the presence of Prof. Ramesh Chand, Member, NITI Aayog.
The report highlights that over the past decades, per capita consumption of edible oil in the country has seen a dramatic rise, reaching 19.7 kg/year whereas the average per capita consumption of developed countries is 25.3kg/years. The report analyzed three different scenarios to assess the demand-supply gaps in 2030 and 2047.
The report found that the demand-supply gap is projected to be 22.3 million metric tonnes (MT) by 2030 and 15.20 MT by 2047 when consumption is capped at 25.3kg per capita. Further, if the consumption is capped at 40.3 kg per capita, the gap widens to 29.5 MT by 2030 and 40 MT by 2047.
Meanwhile, based on another Household Approach’, projections indicate a smaller demand-supply gap of 14.1 MT and 5.9 MT by 2030 and 2047, respectively.
India annually consumes around 25 million tonnes of edible oil. As per regional cuisine preference, North and East India consume mustard oil, south India consume mostly coconut oil, West India consume groundnut oil and Rajasthan consume Sesame oil.
Through “Operation Golden Flow”, India had met its 94 percent requirement of edible oil through its domestic production till 1994. Then after, it has declined due to import of cheap Palm oil.
How to mitigate gap in the supply of oilseeds
Promoting oilseeds on potential areas lost to cereals cultivation can add 7.36 MT of oilseed production. Utilizing one-third of the rice fallow area in ten states in India could be used for oilseed cultivation by 3.12 MT.
Adoption of good quality seeds to bridge the yield gap from 12% in castor to 96% in sunflower can contribute to the country's domestic oilseed production by 17.4 MT. Rice bran offers an estimated potential of 1.9 MT of edible oil. Plantation of Palm oil can potentially increase a staggering 34.4 MT of edible oil. New Indian Express
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August 29, 2024
Bunge's $1B investment in New Orleans area will make Avondale palm oil facility the largest in US
The former Fuji Oil plant will see a tripling in capacity.
A St. Louis-based agribusiness conglomerate is embarking on a $1 billion investment in the New Orleans area, including a plan to triple capacity at its Avondale palm oil refining facility, which will make it the largest processing plant of its kind in the U.S., company executives said.
The company, Bunge, which had revenue of about $60 billion last year, bought the Fuji Vegetable Oil refinery in spring 2023 for $178 million, according to company documents. Fuji Oil built the facility in 2019 for about $70 million but told shareholders last month that it sold it to focus more on southeast Asia.
Bunge plans to expand the volume of processed oil at Avondale threefold to 6,000 standard rail cars a year, according to Brian Hudson, who runs the palm and specialty oils division.
"The Avondale facility will be the largest palm and specialty oils processing plant in North America once it's completed," Hudson said, adding that jobs there will have increased from 30 when the plant was acquired to 45 by the time work is done next year. The expansion project is expected to create 70 construction jobs.
The $225 million expansion will not alter the physical footprint of the factory at Avondale, where it is situated within the International-Matex Tank Terminals giant storage complex, which was also recently upgraded and expanded. Nola
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Sustainable and scalable supplies
Following the European elections, several high-profile MEPs and politicians have publicly stated that renewable fuels like biofuels will have a major role to play in reducing road GHG emissions in the coming decades, arguing against the ban on the sale of new petrol or diesel cars in the EU from 2035 onwards.
The Italian Prime Minister Giorgia Meloni was the most recent to say that the ban makes no sense and the Italian government will work to correct it, as it could be argued that the EU green transition has been pursued at the cost of sacrificing entire production sectors, such as the automotive industry.
During the forthcoming tenure of the new EU institutions, the narrative is shifting. The post-covid energy crisis intensified following the Russian invasion into Ukraine and hit the EU severely leading to a cost-of-living crisis that impacted the wealth of the average European citizen.
In the face of this, and a fear of extreme right political parties gaining ground primarily in Germany, France and other Member States, the focus is shifting towards European competitiveness, industrial rebirth, reducing our reliance on foreign supply chains and even changing...Biofuels International
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Indonesia and Malaysia to Defend Palm Oil Industry Against EUDR in Brussels Talks
Bangka Belitung. Indonesia is intensifying its efforts to counter the European Union's Deforestation-Free Regulation (UEDR), which aims to block products linked to deforestation from entering the European market.
Indonesia and Malaysia, two of the biggest palm oil producers, will send a delegation to Brussels in September 2024 to negotiate with the EU, addressing concerns that the regulation unfairly targets Indonesian palm oil and other forestry products.
Eddy Martono, Chairman of the Indonesian Palm Oil Association (GapkiI), underscored that Indonesia will not stand idly by.
"The government is fully supporting us to ensure that the implementation of the EUDR does not place an undue burden on us. We are set to travel to Brussels in September for a Joint Task Force (JTF) meeting with the European Union and Malaysia," Martono told Beritasatu.com in Bangka Belitung on Thursday.
https://jakartaglobe.id/business/indonesia-and-malaysia-to-defend-palm-oil-industry-against-eudr-in-brussels-talks#:~:text=With%20the%20EUDR,by%20the%20EUDR. J
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EUDR regulations could upend wood products shipments to Europe
The new EU Deforestation Regulation mandates exporters to provide detailed documentation and geolocation data to prove wood products are deforestation-free
New regulations governing wood products imports into the European Union could disrupt or severely impede the region’s trade of softwood and hardwood lumber and panels with foreign suppliers.
The EU Deforestation Regulation (EUDR) was enacted in December 2022 and implemented in June 2023. Enforcement is scheduled to begin December 30, 2024. The laws apply to European Union imports of wood and wood products, cattle, cocoa, coffee, palm oil, rubber, and soy.
Lumber and panel exporters will be required to prove that products shipped into the European Union were produced from logs that were harvested from land that has not been subject to deforestation. The regulations define deforestation and forest degradation as a conversion of a forest to other agricultural uses. Forest degradation is further defined as a structural alteration of forest cover and a conversion from a naturally regenerating forest to a planted forest.
Exporters also must provide documentation that all products were produced in compliance with the supplying country’s current laws regarding land use, environmental protection, labor rights, and other factors. Additionally, shippers will be required to provide due diligence statements that provide the precise location of the forests where the wood was harvested. The geolocation points must be defined by latitude and longitude coordinates with at least six decimal places. The tree species and date or time range of harvest will also be required.
Exports risk storage charges
EU customs will not release lumber or panel imports into the market if the required documentation is missing. Exporters who ship loads lacking the required information could risk storage charges, have the products returned, and possibly face a variety of other sanctions.
“It is therefore important that you start gathering the necessary information now,” a memo from the European Timber Trade Federation sent to many exporters last June advised. “Without this information you will no longer be able to export wood products to the EU (after December 30).”
Various trade agencies in the US and Canada, including the Southern Forest Products Association, the American Hardwood Export Council, USDA, Natural Resources Canada, and the Quebec Wood Export Bureau, are negotiating on behalf of North American exporters shipping to the EU.
A sales manager for a large Western Canadian producer noted in mid-July that most species the company exports to Europe would not meet the regulation as currently written. Cedar and Hemlock clears and other species, especially ones that rely on old-growth forests, would be banned from shipment to the EU.
Southern Pine exporters have expressed concern that the new regulations would eliminate all SYP export suppliers who buy “gate wood” or logs from small acreage stands. One veteran SYP exporter predicted that the majority of exporters to the EU will stop serving that market and concentrate on the larger markets in the Middle East, North Africa, and Asia if the regulations remain unchanged.
In May, US trade officials sent a letter to the EU Commission urging a postponement of the EUDR until “substantial challenges” are addressed. The letter noted that US exporters are struggling to be ready for the new regulations on time. Fast Markets
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Czechia renews calls to postpone EU anti-deforestation law
The Czech Agriculture Ministry has asked the European Commission to delay the application of the EU’s new anti-deforestation law, arguing that its impact on businesses is unclear.
According to the Czech ministry, businesses are unprepared as they lack information about the conditions they need to meet.
“The impact on individual companies and supply chains is difficult to estimate at this time. In order to minimise potential negative effects, the Commission needs to publish and give sufficient time for all actors to familiarise themselves with the key tools needed to implement the Regulation,” the press office of the Czech Agriculture Ministry said on Wednesday (28 August).
“As this has not yet been done, we, like many other EU member states, request that the implementation of the Regulation be postponed,” the ministry added, as quoted by the Czech News Agency.
In addition to Czechia, Austria, Finland, Italy, Poland, Slovakia, Slovenia, and Sweden have previously sought to postpone the legislation.
Similar calls were also made by the European People’s Party (EPP) before the summer recess. Now, Czechia has joined the club, arguing that its companies are struggling and need more time and proper guidelines to comply.
The Czech ministry also noted that despite several requests, the European Commission has not yet started negotiations to postpone the regulation.
The regulation aims to reduce the EU’s contribution to global deforestation and forest degradation. It will affect companies that produce, process or market products made from coffee, cocoa, palm oil, soy, beef, rubber and timber. Companies will have to collect and report the data and coordinates of the land on which they produce these commodities and then record them in a European information system.
The law came into force in June 2023, but the key parts will not be implemented until 30 December 2024. Small businesses will have to comply from 30 June 2025. Eurativ
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Palm Oil Becomes The Prima Donna Of The Community Economy In East Belitung
EAST BELITUNG - People in East Belitung are now not only relying on the mining industry for the economy. However, slowly people turn to the plantation sector, namely palm oil.
East Belitung Regent Burhanudin said oil palm is now one of the sectors that people in his area still use to encourage the economy.
"East belitung is actually living from mining. So in our area there is a quartz sand mine, there is a tin mine, there is clay, and kaolin, after which the earth metal is rare, zinc," he said in the Press Tour. Palm Oil Contribution to the State Budget and the Economy, Wednesday, August 28.
"But oil palm is now the prima donna, palm oil is the driving force for the community's economy now," he continued.
Burhanudin admitted that he had also appealed to people in his area to join the partnership program by utilizing land in the yard. VOI
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Indonesia eyes export growth with South Korea via IK-CEPA
Jakarta (ANTARA) - The Indonesian government is aiming to expand exports to South Korea through the Indonesia-Korea Comprehensive Economic Partnership Agreement (IK-CEPA), which has been in effect for the past year.
At the Team Korea-Indonesia Economic Partnership Forum in Jakarta on Wednesday, Deputy Minister of Trade Jerry Sambuaga stated that coal has been Indonesia's main export commodity to South Korea, with the value of coal exports reaching US$2.2 billion in 2023, followed by petroleum gas at US$1.4 billion.
However, with the implementation of IK-CEPA, the export potential for other products such as motor vehicles, palm oil, ferronickel, and palm kernels has significantly increased.
The five main products imported by Indonesia from South Korea are petroleum oil, cars and motor vehicles, electronic integrated circuits (chips), and synthetic rubber.
"If you look at the trend, I am confident this will not just be limited to the five main products that Indonesia and Korea have traded but could expand beyond that," Sambuaga said.
He urged Indonesian business actors to take advantage of IK-CEPA.
The trade agreement provides benefits such as the elimination of import duties on 95 percent of products traded between the two countries Antara News
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Socfin to withdraw from Luxembourg Stock Exchange: the end of an era
The CSSF has put an end to a year-long dispute between small shareholders and Socfin's main shareholders, the Fabri family and French billionaire Vincent Bolloré: the 689,337 shares they not control between them will be bought back at €32.50 per share. This will take Socfin off the stock market at a time when it is the target of fierce criticism from a major Norwegian pension fund. It was also the end of an era for the Luxembourg Stock Exchange.
Alleged violations of labour rights, some of them serious. Rape. Sexual violence and harassment of women by plantation supervisors and security guards. Socapalm's workforce is mainly made up of contract or day labourers. No employment contracts are reportedly given. Wages paid are allegedly lower than the legal minimum wage. Reduced for social benefits of which employees will never see a penny. Hiring and dismissal at will. Insanitary housing. In Cameroon, as in Sierra Leone and Liberia, the catalogue of erratic behaviour in certain Socfin subsidiaries leaves little room for doubt, according to the report by the Ethics Committee of the Norwegian Government Pension Fund Global, published recently after 15 years of various denunciations.
This committee, which the investment world watches closely, recommended at the end of June that that “the companies Compagnie de l’Odet SE and Bolloré SE be excluded from investment by the Norwegian Government Pension Fund Global due to the risk that the companies are contributing to serious and systematic human rights abuses. The recommendation relates primarily to working conditions at oil palm plantations in Cameroon and their consequences for local communities.”
In response to the persistent allegations, Socfin joined Earthworm. The international not-for-profit foundation--which works with companies, governments and communities to promote sustainable practices in supply chains, particularly in agriculture, forestry and other industries that have an impact on the environment--investigated the matter at the end of last year before publishing its own, very different report in May. The foundation fully recognised only the extension of exploitation outside the concession, remaining much more nuanced on all the other grievances. The Bolloré group, for its part, has distanced itself by explaining that it had no direct operational responsibility.
Investor responsibility
According to numerous media reports, this communication war has led the Bolloré group to review its holdings as part of its ESG policy and its forthcoming European obligations. And in particular, they say, to insist that Socfin buy back the floating 5% so that the companies in the French group can sell them in full to the Fabri group, the main shareholder and friend of Vincent Bolloré for thirty years. The analysis is a little ‘light’, since not only have the two shareholders been linked for years, but the French group will retain almost 40% of the shares, whether the stock is listed or not, and it is difficult to claim that it has no responsibility, even at the end of the value chain. Moreover, the Norwegian pension fund has given the Bolloré group two years to put its African plantations in order.
A year of discussions around this five percent stake came to an end last week. The Luxembourg Financial Sector Supervisory Commission (CSSF) announced that it had set the share price at €32.50, compared with €30.85, following two very interesting and rare reports on how to calculate the 'fair price' of the firm’s shares. [Read the first by BHB & Partners here and the Accuracy report commissioned by the CSSF here, both in French.] The matter had been referred to the financial regulator by some of the smaller shareholders, who hold a total of 689,337 shares outside the stakes controlled by the two main shareholders via different structures, the Fabri family (55.38% of the capital and voting rights) and the Bolloré group (39.75%). One of the small shareholders told L'Informé: “Socfin is being delisted at a time when its dividends are set to soar, because it has repaid its debts and invested nearly a billion euros over ten years.” Delano
Bunge's $1B investment in New Orleans area will make Avondale palm oil facility the largest in US
The former Fuji Oil plant will see a tripling in capacity.
A St. Louis-based agribusiness conglomerate is embarking on a $1 billion investment in the New Orleans area, including a plan to triple capacity at its Avondale palm oil refining facility, which will make it the largest processing plant of its kind in the U.S., company executives said.
The company, Bunge, which had revenue of about $60 billion last year, bought the Fuji Vegetable Oil refinery in spring 2023 for $178 million, according to company documents. Fuji Oil built the facility in 2019 for about $70 million but told shareholders last month that it sold it to focus more on southeast Asia.
Bunge plans to expand the volume of processed oil at Avondale threefold to 6,000 standard rail cars a year, according to Brian Hudson, who runs the palm and specialty oils division.
"The Avondale facility will be the largest palm and specialty oils processing plant in North America once it's completed," Hudson said, adding that jobs there will have increased from 30 when the plant was acquired to 45 by the time work is done next year. The expansion project is expected to create 70 construction jobs.
The $225 million expansion will not alter the physical footprint of the factory at Avondale, where it is situated within the International-Matex Tank Terminals giant storage complex, which was also recently upgraded and expanded. Nola
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Sustainable and scalable supplies
Following the European elections, several high-profile MEPs and politicians have publicly stated that renewable fuels like biofuels will have a major role to play in reducing road GHG emissions in the coming decades, arguing against the ban on the sale of new petrol or diesel cars in the EU from 2035 onwards.
The Italian Prime Minister Giorgia Meloni was the most recent to say that the ban makes no sense and the Italian government will work to correct it, as it could be argued that the EU green transition has been pursued at the cost of sacrificing entire production sectors, such as the automotive industry.
During the forthcoming tenure of the new EU institutions, the narrative is shifting. The post-covid energy crisis intensified following the Russian invasion into Ukraine and hit the EU severely leading to a cost-of-living crisis that impacted the wealth of the average European citizen.
In the face of this, and a fear of extreme right political parties gaining ground primarily in Germany, France and other Member States, the focus is shifting towards European competitiveness, industrial rebirth, reducing our reliance on foreign supply chains and even changing...Biofuels International
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Indonesia and Malaysia to Defend Palm Oil Industry Against EUDR in Brussels Talks
Bangka Belitung. Indonesia is intensifying its efforts to counter the European Union's Deforestation-Free Regulation (UEDR), which aims to block products linked to deforestation from entering the European market.
Indonesia and Malaysia, two of the biggest palm oil producers, will send a delegation to Brussels in September 2024 to negotiate with the EU, addressing concerns that the regulation unfairly targets Indonesian palm oil and other forestry products.
Eddy Martono, Chairman of the Indonesian Palm Oil Association (GapkiI), underscored that Indonesia will not stand idly by.
"The government is fully supporting us to ensure that the implementation of the EUDR does not place an undue burden on us. We are set to travel to Brussels in September for a Joint Task Force (JTF) meeting with the European Union and Malaysia," Martono told Beritasatu.com in Bangka Belitung on Thursday.
https://jakartaglobe.id/business/indonesia-and-malaysia-to-defend-palm-oil-industry-against-eudr-in-brussels-talks#:~:text=With%20the%20EUDR,by%20the%20EUDR. J
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EUDR regulations could upend wood products shipments to Europe
The new EU Deforestation Regulation mandates exporters to provide detailed documentation and geolocation data to prove wood products are deforestation-free
New regulations governing wood products imports into the European Union could disrupt or severely impede the region’s trade of softwood and hardwood lumber and panels with foreign suppliers.
The EU Deforestation Regulation (EUDR) was enacted in December 2022 and implemented in June 2023. Enforcement is scheduled to begin December 30, 2024. The laws apply to European Union imports of wood and wood products, cattle, cocoa, coffee, palm oil, rubber, and soy.
Lumber and panel exporters will be required to prove that products shipped into the European Union were produced from logs that were harvested from land that has not been subject to deforestation. The regulations define deforestation and forest degradation as a conversion of a forest to other agricultural uses. Forest degradation is further defined as a structural alteration of forest cover and a conversion from a naturally regenerating forest to a planted forest.
Exporters also must provide documentation that all products were produced in compliance with the supplying country’s current laws regarding land use, environmental protection, labor rights, and other factors. Additionally, shippers will be required to provide due diligence statements that provide the precise location of the forests where the wood was harvested. The geolocation points must be defined by latitude and longitude coordinates with at least six decimal places. The tree species and date or time range of harvest will also be required.
Exports risk storage charges
EU customs will not release lumber or panel imports into the market if the required documentation is missing. Exporters who ship loads lacking the required information could risk storage charges, have the products returned, and possibly face a variety of other sanctions.
“It is therefore important that you start gathering the necessary information now,” a memo from the European Timber Trade Federation sent to many exporters last June advised. “Without this information you will no longer be able to export wood products to the EU (after December 30).”
Various trade agencies in the US and Canada, including the Southern Forest Products Association, the American Hardwood Export Council, USDA, Natural Resources Canada, and the Quebec Wood Export Bureau, are negotiating on behalf of North American exporters shipping to the EU.
A sales manager for a large Western Canadian producer noted in mid-July that most species the company exports to Europe would not meet the regulation as currently written. Cedar and Hemlock clears and other species, especially ones that rely on old-growth forests, would be banned from shipment to the EU.
Southern Pine exporters have expressed concern that the new regulations would eliminate all SYP export suppliers who buy “gate wood” or logs from small acreage stands. One veteran SYP exporter predicted that the majority of exporters to the EU will stop serving that market and concentrate on the larger markets in the Middle East, North Africa, and Asia if the regulations remain unchanged.
In May, US trade officials sent a letter to the EU Commission urging a postponement of the EUDR until “substantial challenges” are addressed. The letter noted that US exporters are struggling to be ready for the new regulations on time. Fast Markets
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Czechia renews calls to postpone EU anti-deforestation law
The Czech Agriculture Ministry has asked the European Commission to delay the application of the EU’s new anti-deforestation law, arguing that its impact on businesses is unclear.
According to the Czech ministry, businesses are unprepared as they lack information about the conditions they need to meet.
“The impact on individual companies and supply chains is difficult to estimate at this time. In order to minimise potential negative effects, the Commission needs to publish and give sufficient time for all actors to familiarise themselves with the key tools needed to implement the Regulation,” the press office of the Czech Agriculture Ministry said on Wednesday (28 August).
“As this has not yet been done, we, like many other EU member states, request that the implementation of the Regulation be postponed,” the ministry added, as quoted by the Czech News Agency.
In addition to Czechia, Austria, Finland, Italy, Poland, Slovakia, Slovenia, and Sweden have previously sought to postpone the legislation.
Similar calls were also made by the European People’s Party (EPP) before the summer recess. Now, Czechia has joined the club, arguing that its companies are struggling and need more time and proper guidelines to comply.
The Czech ministry also noted that despite several requests, the European Commission has not yet started negotiations to postpone the regulation.
The regulation aims to reduce the EU’s contribution to global deforestation and forest degradation. It will affect companies that produce, process or market products made from coffee, cocoa, palm oil, soy, beef, rubber and timber. Companies will have to collect and report the data and coordinates of the land on which they produce these commodities and then record them in a European information system.
The law came into force in June 2023, but the key parts will not be implemented until 30 December 2024. Small businesses will have to comply from 30 June 2025. Eurativ
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Palm Oil Becomes The Prima Donna Of The Community Economy In East Belitung
EAST BELITUNG - People in East Belitung are now not only relying on the mining industry for the economy. However, slowly people turn to the plantation sector, namely palm oil.
East Belitung Regent Burhanudin said oil palm is now one of the sectors that people in his area still use to encourage the economy.
"East belitung is actually living from mining. So in our area there is a quartz sand mine, there is a tin mine, there is clay, and kaolin, after which the earth metal is rare, zinc," he said in the Press Tour. Palm Oil Contribution to the State Budget and the Economy, Wednesday, August 28.
"But oil palm is now the prima donna, palm oil is the driving force for the community's economy now," he continued.
Burhanudin admitted that he had also appealed to people in his area to join the partnership program by utilizing land in the yard. VOI
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Indonesia eyes export growth with South Korea via IK-CEPA
Jakarta (ANTARA) - The Indonesian government is aiming to expand exports to South Korea through the Indonesia-Korea Comprehensive Economic Partnership Agreement (IK-CEPA), which has been in effect for the past year.
At the Team Korea-Indonesia Economic Partnership Forum in Jakarta on Wednesday, Deputy Minister of Trade Jerry Sambuaga stated that coal has been Indonesia's main export commodity to South Korea, with the value of coal exports reaching US$2.2 billion in 2023, followed by petroleum gas at US$1.4 billion.
However, with the implementation of IK-CEPA, the export potential for other products such as motor vehicles, palm oil, ferronickel, and palm kernels has significantly increased.
The five main products imported by Indonesia from South Korea are petroleum oil, cars and motor vehicles, electronic integrated circuits (chips), and synthetic rubber.
"If you look at the trend, I am confident this will not just be limited to the five main products that Indonesia and Korea have traded but could expand beyond that," Sambuaga said.
He urged Indonesian business actors to take advantage of IK-CEPA.
The trade agreement provides benefits such as the elimination of import duties on 95 percent of products traded between the two countries Antara News
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Socfin to withdraw from Luxembourg Stock Exchange: the end of an era
The CSSF has put an end to a year-long dispute between small shareholders and Socfin's main shareholders, the Fabri family and French billionaire Vincent Bolloré: the 689,337 shares they not control between them will be bought back at €32.50 per share. This will take Socfin off the stock market at a time when it is the target of fierce criticism from a major Norwegian pension fund. It was also the end of an era for the Luxembourg Stock Exchange.
Alleged violations of labour rights, some of them serious. Rape. Sexual violence and harassment of women by plantation supervisors and security guards. Socapalm's workforce is mainly made up of contract or day labourers. No employment contracts are reportedly given. Wages paid are allegedly lower than the legal minimum wage. Reduced for social benefits of which employees will never see a penny. Hiring and dismissal at will. Insanitary housing. In Cameroon, as in Sierra Leone and Liberia, the catalogue of erratic behaviour in certain Socfin subsidiaries leaves little room for doubt, according to the report by the Ethics Committee of the Norwegian Government Pension Fund Global, published recently after 15 years of various denunciations.
This committee, which the investment world watches closely, recommended at the end of June that that “the companies Compagnie de l’Odet SE and Bolloré SE be excluded from investment by the Norwegian Government Pension Fund Global due to the risk that the companies are contributing to serious and systematic human rights abuses. The recommendation relates primarily to working conditions at oil palm plantations in Cameroon and their consequences for local communities.”
In response to the persistent allegations, Socfin joined Earthworm. The international not-for-profit foundation--which works with companies, governments and communities to promote sustainable practices in supply chains, particularly in agriculture, forestry and other industries that have an impact on the environment--investigated the matter at the end of last year before publishing its own, very different report in May. The foundation fully recognised only the extension of exploitation outside the concession, remaining much more nuanced on all the other grievances. The Bolloré group, for its part, has distanced itself by explaining that it had no direct operational responsibility.
Investor responsibility
According to numerous media reports, this communication war has led the Bolloré group to review its holdings as part of its ESG policy and its forthcoming European obligations. And in particular, they say, to insist that Socfin buy back the floating 5% so that the companies in the French group can sell them in full to the Fabri group, the main shareholder and friend of Vincent Bolloré for thirty years. The analysis is a little ‘light’, since not only have the two shareholders been linked for years, but the French group will retain almost 40% of the shares, whether the stock is listed or not, and it is difficult to claim that it has no responsibility, even at the end of the value chain. Moreover, the Norwegian pension fund has given the Bolloré group two years to put its African plantations in order.
A year of discussions around this five percent stake came to an end last week. The Luxembourg Financial Sector Supervisory Commission (CSSF) announced that it had set the share price at €32.50, compared with €30.85, following two very interesting and rare reports on how to calculate the 'fair price' of the firm’s shares. [Read the first by BHB & Partners here and the Accuracy report commissioned by the CSSF here, both in French.] The matter had been referred to the financial regulator by some of the smaller shareholders, who hold a total of 689,337 shares outside the stakes controlled by the two main shareholders via different structures, the Fabri family (55.38% of the capital and voting rights) and the Bolloré group (39.75%). One of the small shareholders told L'Informé: “Socfin is being delisted at a time when its dividends are set to soar, because it has repaid its debts and invested nearly a billion euros over ten years.” Delano
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August 28, 2024
US imports of Chinese used cooking oil set for new record, future uncertain
By Shariq Khan and Chen Aizhu
NEW YORK/SINGAPORE, Aug 28 (Reuters) - U.S. imports of used cooking oil (UCO) from China are set to hit a record in the months ahead, even as regulatory uncertainty casts doubts over longer-term prospects of a trade that boomed last year, according to market participants.
U.S. demand for UCO, a feedstock for biofuels like renewable diesel, has surged as federal and state governments launched incentives to support the industry as they aim to decarbonize transportation. That sparked such a frenzied rush to build new renewable diesel plants that U.S. capacity more than doubled from 2021 to 282,000 barrels per day in 2023, according to government data.
The rapid surge flipped the U.S. from a net exporter of UCO until 2021, to a net importer since 2022. U.S. imports surpassed 1.36 million metric tons (mt) last year, up from about 400,000 mt in 2022, the data showed.
"Demand for UCO from U.S. renewable diesel producers has grown much faster than domestic supply," said Duane Dunlap, owner of renewables consultancy DNS Enterprises.
The supply gap has been readily filled by Chinese exporters, who needed a new outlet as demand from their top buyers in Europe shrank from mid-2023 amid complaints of artificially low prices that led to a European Union investigation. The EU began imposing tariffs on Chinese biodiesel imports this month. Reuters
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EU embargo on Indonesian palm oil a blessing in disguise, Indonesia President-elect Prabowo says
The EU’s Deforestation-free Regulation, which entered into force in June of last year and is scheduled to take effect on December 30 this year, imposes severe restrictions on palm oil exports to the block. It is expected to significantly impact Indonesia as the world’s largest producer of crude palm oil.
JAKARTA – Prabowo Subianto says a European Union embargo on Indonesian palm oil products is “a blessing in disguise”, as it could strengthen the country’s energy self-sufficiency.
The president-elect said he had conveyed that message during his meeting with French President Emmanuel Macron last month.
“During my private meeting with President Macron, he brought up the issue of palm oil. I responded by saying there was no need [for concern]. In fact, we would actually be grateful if European countries chose not to buy our palm oil.”
“My statement seemed to catch him by some surprise,” Prabowo said on Saturday during a speech at the national congress of the National Mandate Party, one of the parties that backed his presidential campaign.
The EU’s Deforestation-free Regulation (EUDR), which entered into force in June of last year and is scheduled to take effect on Dec. 30 this year, imposes severe restrictions on palm oil exports to the block. It is expected to significantly impact Indonesia as the world’s largest producer of crude palm oil (CPO).
Prabowo explained that instead of being sold to European countries, palm oil products could be redirected to the domestic market as raw material for biodiesel. Asia News
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Côte d'Ivoire Becomes Top African Supplier to Cameroon in 2023
(Business in Cameroon) - In 2023, Côte d'Ivoire emerged as Cameroon’s leading African supplier, according to the latest foreign trade report published by the National Institute of Statistics (INS). The country captured 15.9% of the Cameroonian market by supplying 84,369 tons of goods worth nearly CFA76 billion.
The INS report highlights that Côte d'Ivoire owes its position to two main products: crude palm oil and fuels, including lubricants. These products together accounted for 65% of the total value of Ivorian exports to Cameroon in 2023.
Specifically, Côte d'Ivoire exported 39,327 tons of crude palm oil to Cameroon in 2023, generating CFA27.2 billion in revenue. This amount represents 36% of the total value of Ivorian exports to Cameroon, as noted in the INS report.
For fuels and lubricants, exports from Côte d'Ivoire reached 32,461 tons in 2023, valued at CFA22.1 billion. These products made up 29% of the total value of Ivorian exports to Cameroon, placing them just behind palm oil.
Growing Production Deficit
Demand for palm oil in Cameroon has been rising steadily due to an increase in processing units, while local production has remained stagnant, worsening the deficit. In 2022, the Cameroonian Oil Refiners Association (Asroc) estimated an annual structural deficit of 160,000 tons based on 50% capacity utilization of processing units. Business in Cameroon
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MPOC Empowers Johor Smallholders With MPSO Workshop
The Malaysian Palm Oil Council (MPOC), in collaboration with the National Association of Smallholders (NASH), hosted a workshop on August 22, 2024, titled “Pengenalan Standard MSPO (MS2530:2022) dan Aspek Sosial Dalam Perniagaan.” The event attracted over 160 local oil palm smallholders from across Johor, highlighting the importance of sustainable and responsible palm oil practices.
This workshop is part of MPOC’s ongoing efforts to promote sustainable palm oil production. It aimed to enhance smallholders’ understanding of the Malaysian Sustainable Palm Oil (MSPO) certification standards, with a particular focus on social responsibility.
With rising concerns in international markets, especially in Europe, regarding deforestation, labor practices, and supply chain transparency, compliance with global expectations is becoming increasingly crucial for those in the palm oil sector.
The seminar emphasised the need for human rights due diligence, guided by the United Nations Guiding Principles on Business and Human Rights (UNGP).
Smallholders were encouraged to view these practices as essential for ensuring the long-term viability and marketability of their products rather than merely regulatory requirements. Adhering to these standards helps protect workers’ rights, improve operational quality, and enhance access to international markets that demand ethically produced palm oil.
MPOC’s Chief Executive Officer, Belvinder Sron, underscored the significance of these initiatives, stating, “Promoting fair labor practices and respecting human rights are fundamental to the sustainability of the palm oil industry. This workshop not only reinforces our commitment to ethical practices but also aligns with global frameworks like the UNGP, ensuring Malaysian palm oil is produced with the utmost respect for human dignity.” Business Today
US imports of Chinese used cooking oil set for new record, future uncertain
By Shariq Khan and Chen Aizhu
- U.S. demand for UCO driven by biofuel incentives
- EU tariffs on Chinese biodiesel boost U.S. imports
- Future U.S. policy changes create uncertainty for Chinese UCO exporters
NEW YORK/SINGAPORE, Aug 28 (Reuters) - U.S. imports of used cooking oil (UCO) from China are set to hit a record in the months ahead, even as regulatory uncertainty casts doubts over longer-term prospects of a trade that boomed last year, according to market participants.
U.S. demand for UCO, a feedstock for biofuels like renewable diesel, has surged as federal and state governments launched incentives to support the industry as they aim to decarbonize transportation. That sparked such a frenzied rush to build new renewable diesel plants that U.S. capacity more than doubled from 2021 to 282,000 barrels per day in 2023, according to government data.
The rapid surge flipped the U.S. from a net exporter of UCO until 2021, to a net importer since 2022. U.S. imports surpassed 1.36 million metric tons (mt) last year, up from about 400,000 mt in 2022, the data showed.
"Demand for UCO from U.S. renewable diesel producers has grown much faster than domestic supply," said Duane Dunlap, owner of renewables consultancy DNS Enterprises.
The supply gap has been readily filled by Chinese exporters, who needed a new outlet as demand from their top buyers in Europe shrank from mid-2023 amid complaints of artificially low prices that led to a European Union investigation. The EU began imposing tariffs on Chinese biodiesel imports this month. Reuters
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EU embargo on Indonesian palm oil a blessing in disguise, Indonesia President-elect Prabowo says
The EU’s Deforestation-free Regulation, which entered into force in June of last year and is scheduled to take effect on December 30 this year, imposes severe restrictions on palm oil exports to the block. It is expected to significantly impact Indonesia as the world’s largest producer of crude palm oil.
JAKARTA – Prabowo Subianto says a European Union embargo on Indonesian palm oil products is “a blessing in disguise”, as it could strengthen the country’s energy self-sufficiency.
The president-elect said he had conveyed that message during his meeting with French President Emmanuel Macron last month.
“During my private meeting with President Macron, he brought up the issue of palm oil. I responded by saying there was no need [for concern]. In fact, we would actually be grateful if European countries chose not to buy our palm oil.”
“My statement seemed to catch him by some surprise,” Prabowo said on Saturday during a speech at the national congress of the National Mandate Party, one of the parties that backed his presidential campaign.
The EU’s Deforestation-free Regulation (EUDR), which entered into force in June of last year and is scheduled to take effect on Dec. 30 this year, imposes severe restrictions on palm oil exports to the block. It is expected to significantly impact Indonesia as the world’s largest producer of crude palm oil (CPO).
Prabowo explained that instead of being sold to European countries, palm oil products could be redirected to the domestic market as raw material for biodiesel. Asia News
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Côte d'Ivoire Becomes Top African Supplier to Cameroon in 2023
(Business in Cameroon) - In 2023, Côte d'Ivoire emerged as Cameroon’s leading African supplier, according to the latest foreign trade report published by the National Institute of Statistics (INS). The country captured 15.9% of the Cameroonian market by supplying 84,369 tons of goods worth nearly CFA76 billion.
The INS report highlights that Côte d'Ivoire owes its position to two main products: crude palm oil and fuels, including lubricants. These products together accounted for 65% of the total value of Ivorian exports to Cameroon in 2023.
Specifically, Côte d'Ivoire exported 39,327 tons of crude palm oil to Cameroon in 2023, generating CFA27.2 billion in revenue. This amount represents 36% of the total value of Ivorian exports to Cameroon, as noted in the INS report.
For fuels and lubricants, exports from Côte d'Ivoire reached 32,461 tons in 2023, valued at CFA22.1 billion. These products made up 29% of the total value of Ivorian exports to Cameroon, placing them just behind palm oil.
Growing Production Deficit
Demand for palm oil in Cameroon has been rising steadily due to an increase in processing units, while local production has remained stagnant, worsening the deficit. In 2022, the Cameroonian Oil Refiners Association (Asroc) estimated an annual structural deficit of 160,000 tons based on 50% capacity utilization of processing units. Business in Cameroon
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MPOC Empowers Johor Smallholders With MPSO Workshop
The Malaysian Palm Oil Council (MPOC), in collaboration with the National Association of Smallholders (NASH), hosted a workshop on August 22, 2024, titled “Pengenalan Standard MSPO (MS2530:2022) dan Aspek Sosial Dalam Perniagaan.” The event attracted over 160 local oil palm smallholders from across Johor, highlighting the importance of sustainable and responsible palm oil practices.
This workshop is part of MPOC’s ongoing efforts to promote sustainable palm oil production. It aimed to enhance smallholders’ understanding of the Malaysian Sustainable Palm Oil (MSPO) certification standards, with a particular focus on social responsibility.
With rising concerns in international markets, especially in Europe, regarding deforestation, labor practices, and supply chain transparency, compliance with global expectations is becoming increasingly crucial for those in the palm oil sector.
The seminar emphasised the need for human rights due diligence, guided by the United Nations Guiding Principles on Business and Human Rights (UNGP).
Smallholders were encouraged to view these practices as essential for ensuring the long-term viability and marketability of their products rather than merely regulatory requirements. Adhering to these standards helps protect workers’ rights, improve operational quality, and enhance access to international markets that demand ethically produced palm oil.
MPOC’s Chief Executive Officer, Belvinder Sron, underscored the significance of these initiatives, stating, “Promoting fair labor practices and respecting human rights are fundamental to the sustainability of the palm oil industry. This workshop not only reinforces our commitment to ethical practices but also aligns with global frameworks like the UNGP, ensuring Malaysian palm oil is produced with the utmost respect for human dignity.” Business Today
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August 27, 2024
'Blessing in disguise': Indonesia's president-elect Prabowo says EU palm oil ban will benefit his country
Indonesia will use more of the palm oil it produces for biodiesel and reduce its dependence on fuel imports, the incoming president says.
JAKARTA: The European Union's anticipated import curbs on Indonesian palm oil are a "blessing in disguise" that will help the Southeast Asian country improve its energy self-sufficiency, president-elect Prabowo Subianto said.
Indonesia will, instead, use more of the palm oil it produces for biodiesel and reduce its dependence on fuel imports, Mr Prabowo said.
The incoming Indonesian president, who will take over from Mr Joko Widodo on Oct 20, revealed on Sunday (Aug 28) what he had said to French president Emmanuel Macron when they met in Paris in late July.
"If you want to ban our palm oil from entering Europe, I say thank you very much. We will use our palm oil for the benefit of our people, achieving self-sufficiency in energy," said Mr Prabowo as quoted by local media outlet Bisnis.
"We feel that if Europe does not want to buy our palm oil, we are grateful, it's a blessing in disguise. He (Mr Macron) was a bit surprised," he added.
They had discussed what he called the EU’s policy to boycott Indonesian palm oil, and Mr Macron reportedly offered assistance to mitigate the impact of the boycott on Indonesia, Mr Prabowo recounted at the congress of the National Mandate Party (PAN), which is part of his political coalition.
He was referring to the EU’s anti-deforestation regulation, which will take effect on Dec 30 and require assessments of seven commodities including palm oil. Products should be deforestation-free and traceable, among other criteria. Indonesia and Malaysia, the world's two largest palm oil producers, have decried the policy as discriminatory.
In February, Indonesian deputy minister of trade Jerry Sambuaga told Antara news agency that the primary motivation behind the EU's policy was the loss in trade competitiveness. He noted that the EU's domestic rapeseed oil is considerably more expensive than Indonesian palm oil.
Indonesia has lodged an official complaint against the EU with the World Trade Organization (WTO) in a case that remains unresolved. Channel News Asia
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Indonesia's Prabowo hopes to implement 50% palm-based biodiesel blending by 2025
JAKARTA, Aug 26 (Reuters) - Indonesia president-elect Prabowo Subianto hopes to implement mandatory 50% palm oil-based biodiesel blending by early next year, which he said would cut fuel imports by $20 billion per year.
Indonesia said last week it planned to raise the blending to 40% in January 2025, from 35% now, in an effort to reduce fuel imports and lower emission from fossil fuels.
Prabowo takes over in October from incumbent Joko Widodo, whose administration has ordered the palm oil industry to prepare for B50, a 50% blend. Tests have already started on the higher blending preparation.
"We are at B35 now and we will accelerate to B40, B50," Prabowo said late on Saturday.
"With B50, 50% biodiesel made of palm oil, once we reach B50, that God willing by end of this year or early next year, we will save $20 billion a year, we do not need to send this money overseas."
Malaysia's benchmark palm oil futures surged and hit its highest in more than a month on the news, before it retreated and settled at 3,921 ringgit ($902.42) a metric ton, a 1.4% gain. Reuters
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Palm oil in Malaysia could hold the key to reducing emissions, despite controversy surrounding the industry
Palm oil waste could be another source of renewable energy, promoting a greener future.
Although the industry is known to be controversial, producers in Malaysia are making notable progress in addressing climate change and sustainability issues.
Malaysia is the world's second-largest producer of palm oil after Indonesia, with an annual output of about 19 million tonnes.
However, this thriving industry produces substantial amounts of waste and biomass.
These byproducts have an incredible potential to be converted into renewable palm bioenergy, and energy could be used to help Malaysia reduce its reliance on fossil fuels.
Energy potential
Each tonne of crude palm oil produced generates approximately 4 tonnes of dry palm biomass and 3.5 tonnes of palm oil mill effluent.
At palm oil mills, the oil extraction process generates palm biomass, including empty fruit bunches, mesocarp fibres and palm kernel shells, as well as palm oil mill effluent.
Another major source of palm biomass is the plantation, where oil palm trunks and fronds can be found in abundance.
Palm biomass from palm oil mills alone has an estimated energy potential of about 5,000 megawatts (MW) — enough energy to replace almost 40 per cent of Malaysia's yearly dependence on coal (based on 2021 data).
Biogas generated from palm oil mill effluent has an estimated energy potential of 540 MW, which is equivalent to 1.4 per cent of Malaysia's installed capacity mix (based on 2021 data).
Indeed, the prospect of palm bioenergy is promising as a means to help Malaysia transition to a low-carbon and circular economy.
Palm bioenergy could also support Malaysia's goals of achieving 70 per cent renewable energy and net-zero emissions by 2050.
Despite intensifying efforts to utilise these wastes in the energy sector, most of them remain relatively untapped due to several technical challenges. More ABC
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Liberia-Golden Veroleum's palm oil mill violates environmental laws
MONROVIA – A palm oil mill operated by Golden Veroleum Liberia (GVL) in Sinoe County led to a pattern of pollution, violating the company’s environmental permit, an independent audit report found.
The periodic audit by the Monrovia-based auditor Green Consultancy Inc. revealed mill wastes were improperly managed, the facility pollutes water sources, and it causes air pollution for adjacent communities.
“GVL is not in full compliance with some of the Environmental Protection Agency (EPA) permit conditions and specifications,” the report said. These include not submitting quarterly and biannual environmental monitoring reports since the issuance of the Permit.”
The findings mean GVL has violated the terms of its permit, a possible cause for revocation of the document, and the Environmental Protection and Management Law, a ground for punishment. The DayLight has reached out to the EPA concerning enforcement of the polluter-pays principle of the law.
The report is another chapter in GVL’s notoriety after it desecrated a sacred hill to construct the mill and encroached on local communities’ land to develop its plantation in 2013. GVL had signed a US$1.6 billion concession agreement with the Liberian government in 2010 for 65 years – covering 220,000 hectares in Sinoe, Maryland, Grand Kru, River Cess and River Gee.
GVL did not immediately respond to queries for comments on the report. However, the water quality test contradicts a recent GVL press release that the audit “did not identify any issues.”
‘Improper’ waste management More Front Page Africa
'Blessing in disguise': Indonesia's president-elect Prabowo says EU palm oil ban will benefit his country
Indonesia will use more of the palm oil it produces for biodiesel and reduce its dependence on fuel imports, the incoming president says.
JAKARTA: The European Union's anticipated import curbs on Indonesian palm oil are a "blessing in disguise" that will help the Southeast Asian country improve its energy self-sufficiency, president-elect Prabowo Subianto said.
Indonesia will, instead, use more of the palm oil it produces for biodiesel and reduce its dependence on fuel imports, Mr Prabowo said.
The incoming Indonesian president, who will take over from Mr Joko Widodo on Oct 20, revealed on Sunday (Aug 28) what he had said to French president Emmanuel Macron when they met in Paris in late July.
"If you want to ban our palm oil from entering Europe, I say thank you very much. We will use our palm oil for the benefit of our people, achieving self-sufficiency in energy," said Mr Prabowo as quoted by local media outlet Bisnis.
"We feel that if Europe does not want to buy our palm oil, we are grateful, it's a blessing in disguise. He (Mr Macron) was a bit surprised," he added.
They had discussed what he called the EU’s policy to boycott Indonesian palm oil, and Mr Macron reportedly offered assistance to mitigate the impact of the boycott on Indonesia, Mr Prabowo recounted at the congress of the National Mandate Party (PAN), which is part of his political coalition.
He was referring to the EU’s anti-deforestation regulation, which will take effect on Dec 30 and require assessments of seven commodities including palm oil. Products should be deforestation-free and traceable, among other criteria. Indonesia and Malaysia, the world's two largest palm oil producers, have decried the policy as discriminatory.
In February, Indonesian deputy minister of trade Jerry Sambuaga told Antara news agency that the primary motivation behind the EU's policy was the loss in trade competitiveness. He noted that the EU's domestic rapeseed oil is considerably more expensive than Indonesian palm oil.
Indonesia has lodged an official complaint against the EU with the World Trade Organization (WTO) in a case that remains unresolved. Channel News Asia
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Indonesia's Prabowo hopes to implement 50% palm-based biodiesel blending by 2025
JAKARTA, Aug 26 (Reuters) - Indonesia president-elect Prabowo Subianto hopes to implement mandatory 50% palm oil-based biodiesel blending by early next year, which he said would cut fuel imports by $20 billion per year.
Indonesia said last week it planned to raise the blending to 40% in January 2025, from 35% now, in an effort to reduce fuel imports and lower emission from fossil fuels.
Prabowo takes over in October from incumbent Joko Widodo, whose administration has ordered the palm oil industry to prepare for B50, a 50% blend. Tests have already started on the higher blending preparation.
"We are at B35 now and we will accelerate to B40, B50," Prabowo said late on Saturday.
"With B50, 50% biodiesel made of palm oil, once we reach B50, that God willing by end of this year or early next year, we will save $20 billion a year, we do not need to send this money overseas."
Malaysia's benchmark palm oil futures surged and hit its highest in more than a month on the news, before it retreated and settled at 3,921 ringgit ($902.42) a metric ton, a 1.4% gain. Reuters
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Palm oil in Malaysia could hold the key to reducing emissions, despite controversy surrounding the industry
Palm oil waste could be another source of renewable energy, promoting a greener future.
Although the industry is known to be controversial, producers in Malaysia are making notable progress in addressing climate change and sustainability issues.
Malaysia is the world's second-largest producer of palm oil after Indonesia, with an annual output of about 19 million tonnes.
However, this thriving industry produces substantial amounts of waste and biomass.
These byproducts have an incredible potential to be converted into renewable palm bioenergy, and energy could be used to help Malaysia reduce its reliance on fossil fuels.
Energy potential
Each tonne of crude palm oil produced generates approximately 4 tonnes of dry palm biomass and 3.5 tonnes of palm oil mill effluent.
At palm oil mills, the oil extraction process generates palm biomass, including empty fruit bunches, mesocarp fibres and palm kernel shells, as well as palm oil mill effluent.
Another major source of palm biomass is the plantation, where oil palm trunks and fronds can be found in abundance.
Palm biomass from palm oil mills alone has an estimated energy potential of about 5,000 megawatts (MW) — enough energy to replace almost 40 per cent of Malaysia's yearly dependence on coal (based on 2021 data).
Biogas generated from palm oil mill effluent has an estimated energy potential of 540 MW, which is equivalent to 1.4 per cent of Malaysia's installed capacity mix (based on 2021 data).
Indeed, the prospect of palm bioenergy is promising as a means to help Malaysia transition to a low-carbon and circular economy.
Palm bioenergy could also support Malaysia's goals of achieving 70 per cent renewable energy and net-zero emissions by 2050.
Despite intensifying efforts to utilise these wastes in the energy sector, most of them remain relatively untapped due to several technical challenges. More ABC
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Liberia-Golden Veroleum's palm oil mill violates environmental laws
MONROVIA – A palm oil mill operated by Golden Veroleum Liberia (GVL) in Sinoe County led to a pattern of pollution, violating the company’s environmental permit, an independent audit report found.
The periodic audit by the Monrovia-based auditor Green Consultancy Inc. revealed mill wastes were improperly managed, the facility pollutes water sources, and it causes air pollution for adjacent communities.
“GVL is not in full compliance with some of the Environmental Protection Agency (EPA) permit conditions and specifications,” the report said. These include not submitting quarterly and biannual environmental monitoring reports since the issuance of the Permit.”
The findings mean GVL has violated the terms of its permit, a possible cause for revocation of the document, and the Environmental Protection and Management Law, a ground for punishment. The DayLight has reached out to the EPA concerning enforcement of the polluter-pays principle of the law.
The report is another chapter in GVL’s notoriety after it desecrated a sacred hill to construct the mill and encroached on local communities’ land to develop its plantation in 2013. GVL had signed a US$1.6 billion concession agreement with the Liberian government in 2010 for 65 years – covering 220,000 hectares in Sinoe, Maryland, Grand Kru, River Cess and River Gee.
GVL did not immediately respond to queries for comments on the report. However, the water quality test contradicts a recent GVL press release that the audit “did not identify any issues.”
‘Improper’ waste management More Front Page Africa
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August 26, 2024
Beyond profit: How palm oil and the community are thriving together in Malaysia
The palm oil industry has come a long way from the introduction of the plant to the country as an ornamental crop to a complex global powerhouse, contributing significantly to Malaysia’s gross domestic product and the creation of job opportunities. While this pursuit of economic prosperity remains essential, a growing awareness of the industry’s far-reaching social and environmental implications has ignited a shift towards sustainable and responsible practices. Today, the palm oil sector operates within a complex and dynamic environment shaped by converging pressures. Escalating consumer expectations for ethical and sustainable products, coupled with increasingly stringent government regulations and rapid technological advancements, have transformed the industry landscape. With 5.65 million hectares across the country dedicated to the cultivation of the crop, the sector’s impact on local communities, small-scale farmers, indigenous groups and workers is profound and far-reaching.
Uplifting Malaysia’s oil palm farmers
Many oil palm smallholders, have achieved substantial economic progress, primarily thanks to increased income from the cultivation of oil palm. Central to this advancement are the Federal Land Development Authority (FELDA) and the Federal Land Consolidation and Rehabilitation Authority (FELCRA), whose concerted efforts have been instrumental in reducing poverty among smallholders.
One of the most significant ways FELDA has achieved this is through land resettlement programmes. By relocating rural populations to newly developed plantation areas, and providing them with land, housing and essential training, these agencies have transformed the lives of hundreds of thousands of families. Today, FELDA settlers live in settlements that have infrastructure such as roads, schools, mosques, clinics, hospitals, and other facilities. More The Edge Malaysia
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Latin America’s Biofuel Revolution: Balancing Growth and Sustainability
Latin America’s transition to biofuels is a promising step towards sustainability, yet it faces significant challenges. This feature explores the region’s efforts to develop biofuels, examining historical context, technological advances, and the potential for a greener future.
Latin America’s natural wealth has been both a blessing and a curse. For centuries, the region’s abundant resources—whether silver, oil, or agricultural products—have attracted foreign interests eager to exploit them. External forces have significantly shaped the region’s economic and environmental landscape, from the Spanish conquistadors to modern multinational corporations. This legacy of resource extraction has profoundly impacted Latin America’s ecosystems, leading to widespread deforestation, pollution, and the depletion of natural resources.
As global concerns about climate change and environmental sustainability have intensified, Latin America is at a crossroads. The region is rich in biodiversity and possesses vast amounts of arable land, making it a potential leader in producing renewable energy. However, the transition from fossil fuels to biofuels is challenging. The history of resource exploitation raises essential questions about the sustainability of this new energy paradigm. Can Latin America leverage its natural assets to foster sustainable development, or will the push for biofuels repeat the patterns of the past?
This article delves into the state of biofuel production and research in six key Latin American countries: Argentina, Brazil, Mexico, Chile, Costa Rica, and Colombia. Analyzing data from the past decade and examining the historical context offers a comprehensive overview of the region’s progress, challenges, and potential for biofuels to drive a greener future. More Latin American Post
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Indonesia's President-elect Prabowo Calls Food And Energy Safe, Key To Indonesia's Prosperity
JAKARTA - President-elect of 2024-2029 Prabowo Subianto stated that the key to Indonesia's prosperity lies in resources that can be managed and enjoyed by the nation itself.
Prabowo conveyed this on his occasion to be a speaker at the Closing of the 6th Congress of the 2024 National Mandate Party which was held at the Kempinski Hotel, Jakarta, Saturday night.
In the next five years, Prabowo believes that Indonesia will be able to self-sufficiency in food and then become an exporter to the world.
"I count that in five years we will not only self-sufficiency in food exports for the world. We will become a world food barn," he said.
Regarding energy sources, Prabowo said that later Indonesia will be able to manage it from palm oil. Indonesia will accelerate B50 or biodiesel by 50% which is targeted at the end of 2024 or early 2025. More VOI
Beyond profit: How palm oil and the community are thriving together in Malaysia
The palm oil industry has come a long way from the introduction of the plant to the country as an ornamental crop to a complex global powerhouse, contributing significantly to Malaysia’s gross domestic product and the creation of job opportunities. While this pursuit of economic prosperity remains essential, a growing awareness of the industry’s far-reaching social and environmental implications has ignited a shift towards sustainable and responsible practices. Today, the palm oil sector operates within a complex and dynamic environment shaped by converging pressures. Escalating consumer expectations for ethical and sustainable products, coupled with increasingly stringent government regulations and rapid technological advancements, have transformed the industry landscape. With 5.65 million hectares across the country dedicated to the cultivation of the crop, the sector’s impact on local communities, small-scale farmers, indigenous groups and workers is profound and far-reaching.
Uplifting Malaysia’s oil palm farmers
Many oil palm smallholders, have achieved substantial economic progress, primarily thanks to increased income from the cultivation of oil palm. Central to this advancement are the Federal Land Development Authority (FELDA) and the Federal Land Consolidation and Rehabilitation Authority (FELCRA), whose concerted efforts have been instrumental in reducing poverty among smallholders.
One of the most significant ways FELDA has achieved this is through land resettlement programmes. By relocating rural populations to newly developed plantation areas, and providing them with land, housing and essential training, these agencies have transformed the lives of hundreds of thousands of families. Today, FELDA settlers live in settlements that have infrastructure such as roads, schools, mosques, clinics, hospitals, and other facilities. More The Edge Malaysia
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Latin America’s Biofuel Revolution: Balancing Growth and Sustainability
Latin America’s transition to biofuels is a promising step towards sustainability, yet it faces significant challenges. This feature explores the region’s efforts to develop biofuels, examining historical context, technological advances, and the potential for a greener future.
Latin America’s natural wealth has been both a blessing and a curse. For centuries, the region’s abundant resources—whether silver, oil, or agricultural products—have attracted foreign interests eager to exploit them. External forces have significantly shaped the region’s economic and environmental landscape, from the Spanish conquistadors to modern multinational corporations. This legacy of resource extraction has profoundly impacted Latin America’s ecosystems, leading to widespread deforestation, pollution, and the depletion of natural resources.
As global concerns about climate change and environmental sustainability have intensified, Latin America is at a crossroads. The region is rich in biodiversity and possesses vast amounts of arable land, making it a potential leader in producing renewable energy. However, the transition from fossil fuels to biofuels is challenging. The history of resource exploitation raises essential questions about the sustainability of this new energy paradigm. Can Latin America leverage its natural assets to foster sustainable development, or will the push for biofuels repeat the patterns of the past?
This article delves into the state of biofuel production and research in six key Latin American countries: Argentina, Brazil, Mexico, Chile, Costa Rica, and Colombia. Analyzing data from the past decade and examining the historical context offers a comprehensive overview of the region’s progress, challenges, and potential for biofuels to drive a greener future. More Latin American Post
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Indonesia's President-elect Prabowo Calls Food And Energy Safe, Key To Indonesia's Prosperity
JAKARTA - President-elect of 2024-2029 Prabowo Subianto stated that the key to Indonesia's prosperity lies in resources that can be managed and enjoyed by the nation itself.
Prabowo conveyed this on his occasion to be a speaker at the Closing of the 6th Congress of the 2024 National Mandate Party which was held at the Kempinski Hotel, Jakarta, Saturday night.
In the next five years, Prabowo believes that Indonesia will be able to self-sufficiency in food and then become an exporter to the world.
"I count that in five years we will not only self-sufficiency in food exports for the world. We will become a world food barn," he said.
Regarding energy sources, Prabowo said that later Indonesia will be able to manage it from palm oil. Indonesia will accelerate B50 or biodiesel by 50% which is targeted at the end of 2024 or early 2025. More VOI
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August 25, 2024
Biodiesel and renewable diesel have become two new darlings of alternative fuel advocates
n our increasingly urgent quest to clean up our climate-altering, carbon-fueled culture, biodiesel and renewable diesel have become two new darlings of alternative fuel advocates.
While diesel fuel may be diesel fuel, biodiesel and renewable diesel are not the same thing. According to the U.S. Department of Agriculture (USDA), both are “produced from the same renewable feedstocks such as vegetable oils, animal fats or used cooking oil.”
The key “difference is that renewable diesel is produced using a hydrogen treatment which makes it chemically equivalent to petroleum diesel.” That means renewable diesel “can be blended at higher levels and transported using existing pipelines.”
Production of U.S. biodiesel peaked at 1.8 billion gallons in 2018/19 while renewable diesel production – just 40 million gallons in 2010 – passed 2.3 billion gallons in 2022/23.
That rapid rise also increased U.S. soybean oil use; 46 percent of all U.S. soybean oil in 2022/23 was used in the production of alternative diesel fuels. Also, “imports of animal fats and vegetable oils… to use as feedstocks for renewable diesel production” increased, notes USDA.
Other U.S. trade operations were affected too. As “U.S. soybean crush expanded to produce more (soybean) oil, driven by high soybean oil prices fueling strong crush margins …U.S. soybean exports declined on expanding Brazilian supplies.”
In addition to that surprising development, the “United States became a net soybean oil importer for the first time in 2023.”
Few market watchers saw either price rattling change coming.
Likewise, few predicted that California’s adoption of its Low Carbon Fuel Standard (LCFS) in 2007 would create “a flood of credits from renewable diesel and manure biomethane” digesters. That flood means the Golden State “now consumes more than half of the national [biodiesel] supply even though California consumes only 7 percent of the nation’s overall diesel fuel…”
It’s a modern example of the Law of Unintended Consequences: California’s highly incentivized alternative diesel program is so lucrative that it sucks up half the nation’s vegetable- and tallow-based diesel supply and, in the process, all but ensures other states’ air will become dirtier because very few other states have similar incentives to create renewable diesel markets.
Here’s another unintended consequence: According to recent reporting by FERN, the Food & Environment Reporting Network, “The United States imported near-record volumes of renewable diesel each of the first five months of this year… which were 29 percent higher than in the same period in 2023…”
Moreover, “The imports… came from one producer, Neste, and were shipped almost wholly to the West Coast.”
In other words, California’s renewable diesel markets – and now Oregon and Washington’s similar programs – are so subsidy lucrative that one company, Neste, based in Helsinki, Finland, is sending an average of 30,000 barrels of renewable diesel per day to the West Coast to meet the government-generated demand.
Also, according to the U.S. Energy Information Administration (EIA), “... the larger imports were probably driven by the expansion of Neste’s plant in Singapore and increased storage capacity at a terminal in Los Angeles.” Farmers Advance
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Indonesia’s Pertamina gets ISCC certification for SAF
Indonesia's state-owned Pertamina has obtained International Sustainability and Carbon Certification (ISCC) Corsia and ISCC EU RED-compliant certification for sustainable aviation fuel (SAF).
Pertamina's downstream arm Pertamina Patra Niaga obtained the certification as it is powering a domestic flight with SAF during the Bali International Air Show next month, said company sources. Following the air show, Pertamina also plans to encourage SAF adoption among its aviation customers, starting with those at the Ngurah Rai International Airport in Bali because of its high volumes of international flights. The Ngurah Rai aviation fuel terminal in Bali and Soekarno-Hatta Aviation Fuel Terminal and Hydrant Installation in Jakarta were the first locations to receive the certification.
Pertamina's customers will be able to claim reduced carbon emissions resulting from the use of SAF, hydrotreated vegetable oil and used cooking oil (UCO) purchased from the refiner, its director of central marketing and commerce Maya Kusmaya said. He added that Pertamina is the first operator in southeast Asia to market ISCC Corsia certified SAF.
But Pertamina's actual SAF production from palm and waste-based feedstocks such as UCO and palm oil mill effluent oil is likely to still start around 2026, when the second phase of its Cilacap "green refinery" is commissioned and comes on line, said a company source. It [previously produced SAF] (https://direct.argusmedia.com/newsandanalysis/article/2251914) and renewable diesel at its Cilacap and Dumai refineries but using refined, bleached and deodorised palm oil. More Argus Media
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Biodiesel and renewable diesel have become two new darlings of alternative fuel advocates
n our increasingly urgent quest to clean up our climate-altering, carbon-fueled culture, biodiesel and renewable diesel have become two new darlings of alternative fuel advocates.
While diesel fuel may be diesel fuel, biodiesel and renewable diesel are not the same thing. According to the U.S. Department of Agriculture (USDA), both are “produced from the same renewable feedstocks such as vegetable oils, animal fats or used cooking oil.”
The key “difference is that renewable diesel is produced using a hydrogen treatment which makes it chemically equivalent to petroleum diesel.” That means renewable diesel “can be blended at higher levels and transported using existing pipelines.”
Production of U.S. biodiesel peaked at 1.8 billion gallons in 2018/19 while renewable diesel production – just 40 million gallons in 2010 – passed 2.3 billion gallons in 2022/23.
That rapid rise also increased U.S. soybean oil use; 46 percent of all U.S. soybean oil in 2022/23 was used in the production of alternative diesel fuels. Also, “imports of animal fats and vegetable oils… to use as feedstocks for renewable diesel production” increased, notes USDA.
Other U.S. trade operations were affected too. As “U.S. soybean crush expanded to produce more (soybean) oil, driven by high soybean oil prices fueling strong crush margins …U.S. soybean exports declined on expanding Brazilian supplies.”
In addition to that surprising development, the “United States became a net soybean oil importer for the first time in 2023.”
Few market watchers saw either price rattling change coming.
Likewise, few predicted that California’s adoption of its Low Carbon Fuel Standard (LCFS) in 2007 would create “a flood of credits from renewable diesel and manure biomethane” digesters. That flood means the Golden State “now consumes more than half of the national [biodiesel] supply even though California consumes only 7 percent of the nation’s overall diesel fuel…”
It’s a modern example of the Law of Unintended Consequences: California’s highly incentivized alternative diesel program is so lucrative that it sucks up half the nation’s vegetable- and tallow-based diesel supply and, in the process, all but ensures other states’ air will become dirtier because very few other states have similar incentives to create renewable diesel markets.
Here’s another unintended consequence: According to recent reporting by FERN, the Food & Environment Reporting Network, “The United States imported near-record volumes of renewable diesel each of the first five months of this year… which were 29 percent higher than in the same period in 2023…”
Moreover, “The imports… came from one producer, Neste, and were shipped almost wholly to the West Coast.”
In other words, California’s renewable diesel markets – and now Oregon and Washington’s similar programs – are so subsidy lucrative that one company, Neste, based in Helsinki, Finland, is sending an average of 30,000 barrels of renewable diesel per day to the West Coast to meet the government-generated demand.
Also, according to the U.S. Energy Information Administration (EIA), “... the larger imports were probably driven by the expansion of Neste’s plant in Singapore and increased storage capacity at a terminal in Los Angeles.” Farmers Advance
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Indonesia’s Pertamina gets ISCC certification for SAF
Indonesia's state-owned Pertamina has obtained International Sustainability and Carbon Certification (ISCC) Corsia and ISCC EU RED-compliant certification for sustainable aviation fuel (SAF).
Pertamina's downstream arm Pertamina Patra Niaga obtained the certification as it is powering a domestic flight with SAF during the Bali International Air Show next month, said company sources. Following the air show, Pertamina also plans to encourage SAF adoption among its aviation customers, starting with those at the Ngurah Rai International Airport in Bali because of its high volumes of international flights. The Ngurah Rai aviation fuel terminal in Bali and Soekarno-Hatta Aviation Fuel Terminal and Hydrant Installation in Jakarta were the first locations to receive the certification.
Pertamina's customers will be able to claim reduced carbon emissions resulting from the use of SAF, hydrotreated vegetable oil and used cooking oil (UCO) purchased from the refiner, its director of central marketing and commerce Maya Kusmaya said. He added that Pertamina is the first operator in southeast Asia to market ISCC Corsia certified SAF.
But Pertamina's actual SAF production from palm and waste-based feedstocks such as UCO and palm oil mill effluent oil is likely to still start around 2026, when the second phase of its Cilacap "green refinery" is commissioned and comes on line, said a company source. It [previously produced SAF] (https://direct.argusmedia.com/newsandanalysis/article/2251914) and renewable diesel at its Cilacap and Dumai refineries but using refined, bleached and deodorised palm oil. More Argus Media
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August 24, 2024
Nigeria: Palm oil stakeholders seek CPOPC’s support to boost production
Palm oil stakeholders in Nigeria have solicited the technical support of Council of Palm Oil Producing Countries(CPOPC) to boost palm oil production and improve livelihood of smallholder farmers across the country.
Amb. Alphonsus Inyang, National President of National Palm Produce Association of Nigeria (NPPAN), made the call at the Town Hall meeting of the association, stakeholders in Nigeria’s oil palm industry and CPOPC on Friday in Abuja.
Inyang called for the council’s support in the area of technological transfer, capacity building and provision of hybrid inputs to enhance production capacity of smallholder farmers being the highest producers of oil palm in the country.
He appealed for the formation of global alliance; a congregation of smallholder farmers that would enable them to have a unified voice globally towards policy makers and implementers on issues affecting them.
“The alliance is purposely to share knowledge; information that bothers on the challenges they face in the industry’s growth and aspiration for prosperity.
“The convergence is geared towards good lives and enhance livelihood of households and communities at large.
“We want CPOPC to act as a convergence or as an enabler to make this happen globally; this is one of the things we want you to midwife so that it can help us to move forward.’’ World Stage News
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Cameroon’s Palm Oil Imports from Africa Surge Tenfold in Six Years
Business in Cameroon) - Between 2017 and 2023, Cameroon imported 409,000 tons of palm oil from other African countries, spending CFA280.4 billion, according to a recent report by the National Institute of Statistics (INS). The country's palm oil imports soared from 12,600 tons in 2017 (CFA5.7 billion) to 122,500 tons in 2023 (CFA89.9 billion).
The report highlights that Cameroon primarily sources palm oil from Gabon and Côte d'Ivoire, with Côte d'Ivoire emerging as the top supplier. In 2023 alone, Cameroon imported 39,327 tons of palm oil from Côte d'Ivoire, valued at CFA27.2 billion. Palm oil now represents 19% of Cameroon’s imports from African countries in 2023.
The growing demand for palm oil in Cameroon is outpacing domestic production, deepening the supply gap. In 2022, the Association of Oilseed Refiners of Cameroon (Asroc) estimated the annual shortfall at 160,000 tons, based on processing units operating at 50% capacity. However, industry experts suggest the real deficit exceeds 500,000 tons yearly, with national demand surpassing one million tons, while local production remains between 400,000 and 500,000 tons. Business Cameroon
Nigeria: Palm oil stakeholders seek CPOPC’s support to boost production
Palm oil stakeholders in Nigeria have solicited the technical support of Council of Palm Oil Producing Countries(CPOPC) to boost palm oil production and improve livelihood of smallholder farmers across the country.
Amb. Alphonsus Inyang, National President of National Palm Produce Association of Nigeria (NPPAN), made the call at the Town Hall meeting of the association, stakeholders in Nigeria’s oil palm industry and CPOPC on Friday in Abuja.
Inyang called for the council’s support in the area of technological transfer, capacity building and provision of hybrid inputs to enhance production capacity of smallholder farmers being the highest producers of oil palm in the country.
He appealed for the formation of global alliance; a congregation of smallholder farmers that would enable them to have a unified voice globally towards policy makers and implementers on issues affecting them.
“The alliance is purposely to share knowledge; information that bothers on the challenges they face in the industry’s growth and aspiration for prosperity.
“The convergence is geared towards good lives and enhance livelihood of households and communities at large.
“We want CPOPC to act as a convergence or as an enabler to make this happen globally; this is one of the things we want you to midwife so that it can help us to move forward.’’ World Stage News
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Cameroon’s Palm Oil Imports from Africa Surge Tenfold in Six Years
Business in Cameroon) - Between 2017 and 2023, Cameroon imported 409,000 tons of palm oil from other African countries, spending CFA280.4 billion, according to a recent report by the National Institute of Statistics (INS). The country's palm oil imports soared from 12,600 tons in 2017 (CFA5.7 billion) to 122,500 tons in 2023 (CFA89.9 billion).
The report highlights that Cameroon primarily sources palm oil from Gabon and Côte d'Ivoire, with Côte d'Ivoire emerging as the top supplier. In 2023 alone, Cameroon imported 39,327 tons of palm oil from Côte d'Ivoire, valued at CFA27.2 billion. Palm oil now represents 19% of Cameroon’s imports from African countries in 2023.
The growing demand for palm oil in Cameroon is outpacing domestic production, deepening the supply gap. In 2022, the Association of Oilseed Refiners of Cameroon (Asroc) estimated the annual shortfall at 160,000 tons, based on processing units operating at 50% capacity. However, industry experts suggest the real deficit exceeds 500,000 tons yearly, with national demand surpassing one million tons, while local production remains between 400,000 and 500,000 tons. Business Cameroon
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August 23, 2024
BRICS Supportive Of Malaysia's Wish To Join The Group
KUALA LUMPUR, Aug 22 (Bernama) – BRICS (Brazil, Russia, India, China and South Africa) countries are supportive of Malaysia’s wish to join the grouping, said Prime Minister Datuk Seri Anwar Ibrahim.
“We are very fortunate that they (BRICS members) are supportive of Malaysia’s application although it is yet to be decided whether Malaysia will join BRICS,” he told India Today Global in an exclusive interview.
The interview was held in conjunction with his three-day official visit to India which concluded yesterday.
He also told the interview that Malaysia is still in the early stage of the BRICS membership process, whereby country representatives will finalise direct participation during the BRICS summit in Kazan, Russia.
“Malaysia will be a BRICS ‘partner country’ first before full participation is finalised,” he explained.
BRICS was established in 2009 as a platform for emerging economies comprising Brazil, Russia, India, and China, with South Africa joining in 2010. Iran, Egypt, Ethiopia, and the United Arab Emirates were admitted into the organisation in January 2024.
Earlier, Anwar noted that his Indian counterpart Narendra Modi has agreed to support Malaysia’s bid to join the group, reinforcing the growing collaboration between the two nations. Bernama
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India plans to boost oilseed output to reduce edible oils imports
In addition, expansion of oilseeds areas in traditional areas and non-traditional areas such as rice-fallow or potato- fallow and through intercropping are being worked out.
In an attempt to reduce India’s high dependence on edible oil imports, the government is looking to boost domestic oilseeds production. The plan is to increase yields, expand the area under cultivation and introduce a dynamic import duty structure so that domestic prices are not impacted by cheaper imports.
The government is also making arrangements for the assured procurement of oilseeds such as mustard, soybean and groundnut at the minimum support price (MSP) from farmers as promised by the agriculture minister Shivraj Singh Chouhan.
Sources told FE that the agriculture ministry has identified 600 clusters across 347 districts in 20 states to boost the productivity of oilseeds, especially mustard, groundnut, soybean, sesame, and niger seeds. ‘Through the introduction of high-yielding seed varieties and creation of seed hubs and storage facilities, we expect to boost oilseeds yield from 13.5 quintal/hectare currently to 21.1 quintal/hectare by 2030,’ an official said.
In addition, expansion of oilseeds areas in traditional areas and non-traditional areas such as rice-fallow or potato- fallow and through intercropping are being worked out.
India is the world’s second-largest consumer and biggest vegetable oil importer. It meets about 58% of its consumption needs of around 24 million tonne (MT) annually through imports. Trade sources estimate that domestic consumption is likely to increase to around 30 MT in the next 3 to 4 years. More Financial Express
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Malaysia will support India's R&D on palm oil production
KUALA LUMPUR: Malaysia will support India's research and development on palm oil production, says Prime Minister Datuk Seri Anwar Ibrahim.
He said the two countries would collaborate on the process, adding that Malaysia is lucky to have India's "independent and professional views" compared to the negative reactions from the European Union (EU) and the United States on palm oil production.
"Some companies (in India) have conducted their own research to define the (country's) position (on palm oil production) (and) it will (continue to) increase.
"We also agreed to support the Indian experiment on palm oil production in a collaborative manner," Anwar said in an exclusive interview with India Today Global during his recent three-day visit to the country. More New Straits Times
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India allows export of 200,000 tonne non-basmati rice to Malaysia
India has permitted exports of 200,000 tonne of non-basmati white rice to Malaysia, an official notification said.
India banned the export of rice in July 2023 to control inflation and secure food security.
The exports of rice to Malaysia are permitted through National Cooperative Exports Limited, the Directorate General of Foreign Trade (DGFT) said in its notification dated August 20, the day when the Prime Minister of Malaysia, Dato’ Seri Anwar bin Ibrahim was in New Delhi for a State Visit.
In October 2023, India allowed 170,000 tonne of non-basmati white rice to Malaysia.
Earlier, India allowed the export of such a variety of rice to Nepal, Cameroon, Cote d’Ivoire, the Republic of Guinea, Philippines, Seychelles, UAE, Singapore, Comoros, Madagascar, Equatorial Guinea, Egypt, and Kenya, and Tanzania, though with varying quantities. More UK Agro Consult
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Orangutan Diplomacy: A new era for conservation and sustainable development
DURING the World Orangutan Day celebration at the Sepilok Orangutan Rehabilitation Centre in Sabah, Datuk Seri Johari Abdul Ghani, the Minister of Plantation and Commodities unveiled a revised "Orangutan Diplomacy" initiative, aimed at safeguarding Malaysia's rich biodiversity, particularly the critically endangered orangutans of Sabah.
In the announcement, the Minister declared that no further forested areas in Malaysia will be permitted for conversion into palm oil plantations. This is a significant step forward in the battle to preserve the natural habitats of the orangutans, particularly in plantation landscapes. We hope that this commitment can be enshrined as a policy leading towards amendments to relevant ordinances that can effectively protect and conserve our orangutans.
In Sabah, where a significant portion of the remaining orangutan population resides, the emphasis will now be placed on conserving these majestic creatures in their natural habitats. The Minister highlighted the critical importance of in-situ conservation efforts, where orangutans are protected within their existing environments, including those areas that intersect with palm oil plantations.
This move is not just a win for wildlife conservation but also a crucial step towards balancing economic growth with environmental sustainability. Given the critically endangered status of the Bornean orangutans, WWF-Malaysia advocates for in-situ conservation, and urges trading partners and the international community to provide support to Malaysia, and for companies to shift their paradigm towards adopting orangutan conservation. Malaysia can showcase her commitment to orangutan conservation by conserving any remaining natural forests that are habitats for orangutans, including those in the palm oil plantations. While the population of orangutans is stable in Sarawak at 2,000 individuals and most of Sabah at 11,000; in eastern Sabah, based on our 2019 survey, the population in the Tabin Wildlife Reserve has declined by about 30%, due to surrounding forest loss and conversion into plantations. More New Straits Times
BRICS Supportive Of Malaysia's Wish To Join The Group
KUALA LUMPUR, Aug 22 (Bernama) – BRICS (Brazil, Russia, India, China and South Africa) countries are supportive of Malaysia’s wish to join the grouping, said Prime Minister Datuk Seri Anwar Ibrahim.
“We are very fortunate that they (BRICS members) are supportive of Malaysia’s application although it is yet to be decided whether Malaysia will join BRICS,” he told India Today Global in an exclusive interview.
The interview was held in conjunction with his three-day official visit to India which concluded yesterday.
He also told the interview that Malaysia is still in the early stage of the BRICS membership process, whereby country representatives will finalise direct participation during the BRICS summit in Kazan, Russia.
“Malaysia will be a BRICS ‘partner country’ first before full participation is finalised,” he explained.
BRICS was established in 2009 as a platform for emerging economies comprising Brazil, Russia, India, and China, with South Africa joining in 2010. Iran, Egypt, Ethiopia, and the United Arab Emirates were admitted into the organisation in January 2024.
Earlier, Anwar noted that his Indian counterpart Narendra Modi has agreed to support Malaysia’s bid to join the group, reinforcing the growing collaboration between the two nations. Bernama
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India plans to boost oilseed output to reduce edible oils imports
In addition, expansion of oilseeds areas in traditional areas and non-traditional areas such as rice-fallow or potato- fallow and through intercropping are being worked out.
In an attempt to reduce India’s high dependence on edible oil imports, the government is looking to boost domestic oilseeds production. The plan is to increase yields, expand the area under cultivation and introduce a dynamic import duty structure so that domestic prices are not impacted by cheaper imports.
The government is also making arrangements for the assured procurement of oilseeds such as mustard, soybean and groundnut at the minimum support price (MSP) from farmers as promised by the agriculture minister Shivraj Singh Chouhan.
Sources told FE that the agriculture ministry has identified 600 clusters across 347 districts in 20 states to boost the productivity of oilseeds, especially mustard, groundnut, soybean, sesame, and niger seeds. ‘Through the introduction of high-yielding seed varieties and creation of seed hubs and storage facilities, we expect to boost oilseeds yield from 13.5 quintal/hectare currently to 21.1 quintal/hectare by 2030,’ an official said.
In addition, expansion of oilseeds areas in traditional areas and non-traditional areas such as rice-fallow or potato- fallow and through intercropping are being worked out.
India is the world’s second-largest consumer and biggest vegetable oil importer. It meets about 58% of its consumption needs of around 24 million tonne (MT) annually through imports. Trade sources estimate that domestic consumption is likely to increase to around 30 MT in the next 3 to 4 years. More Financial Express
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Malaysia will support India's R&D on palm oil production
KUALA LUMPUR: Malaysia will support India's research and development on palm oil production, says Prime Minister Datuk Seri Anwar Ibrahim.
He said the two countries would collaborate on the process, adding that Malaysia is lucky to have India's "independent and professional views" compared to the negative reactions from the European Union (EU) and the United States on palm oil production.
"Some companies (in India) have conducted their own research to define the (country's) position (on palm oil production) (and) it will (continue to) increase.
"We also agreed to support the Indian experiment on palm oil production in a collaborative manner," Anwar said in an exclusive interview with India Today Global during his recent three-day visit to the country. More New Straits Times
--------
India allows export of 200,000 tonne non-basmati rice to Malaysia
India has permitted exports of 200,000 tonne of non-basmati white rice to Malaysia, an official notification said.
India banned the export of rice in July 2023 to control inflation and secure food security.
The exports of rice to Malaysia are permitted through National Cooperative Exports Limited, the Directorate General of Foreign Trade (DGFT) said in its notification dated August 20, the day when the Prime Minister of Malaysia, Dato’ Seri Anwar bin Ibrahim was in New Delhi for a State Visit.
In October 2023, India allowed 170,000 tonne of non-basmati white rice to Malaysia.
Earlier, India allowed the export of such a variety of rice to Nepal, Cameroon, Cote d’Ivoire, the Republic of Guinea, Philippines, Seychelles, UAE, Singapore, Comoros, Madagascar, Equatorial Guinea, Egypt, and Kenya, and Tanzania, though with varying quantities. More UK Agro Consult
--------
Orangutan Diplomacy: A new era for conservation and sustainable development
DURING the World Orangutan Day celebration at the Sepilok Orangutan Rehabilitation Centre in Sabah, Datuk Seri Johari Abdul Ghani, the Minister of Plantation and Commodities unveiled a revised "Orangutan Diplomacy" initiative, aimed at safeguarding Malaysia's rich biodiversity, particularly the critically endangered orangutans of Sabah.
In the announcement, the Minister declared that no further forested areas in Malaysia will be permitted for conversion into palm oil plantations. This is a significant step forward in the battle to preserve the natural habitats of the orangutans, particularly in plantation landscapes. We hope that this commitment can be enshrined as a policy leading towards amendments to relevant ordinances that can effectively protect and conserve our orangutans.
In Sabah, where a significant portion of the remaining orangutan population resides, the emphasis will now be placed on conserving these majestic creatures in their natural habitats. The Minister highlighted the critical importance of in-situ conservation efforts, where orangutans are protected within their existing environments, including those areas that intersect with palm oil plantations.
This move is not just a win for wildlife conservation but also a crucial step towards balancing economic growth with environmental sustainability. Given the critically endangered status of the Bornean orangutans, WWF-Malaysia advocates for in-situ conservation, and urges trading partners and the international community to provide support to Malaysia, and for companies to shift their paradigm towards adopting orangutan conservation. Malaysia can showcase her commitment to orangutan conservation by conserving any remaining natural forests that are habitats for orangutans, including those in the palm oil plantations. While the population of orangutans is stable in Sarawak at 2,000 individuals and most of Sabah at 11,000; in eastern Sabah, based on our 2019 survey, the population in the Tabin Wildlife Reserve has declined by about 30%, due to surrounding forest loss and conversion into plantations. More New Straits Times
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August 22, 2024
Malaysia is always ready to fulfill demand for palm oil in India - Tengku Zafrul
KUALA LUMPUR: Malaysia is always ready to meet the increasing demand for palm oil in India through the cooperation with major importing companies such as Emami Agrotech Ltd.
Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said Emami Agrotech is one of the largest palm oil importers in India, and during his recent meeting with its executive director Manush Goenka in India, the potential for Emami to increase its palm oil imports from Malaysia was discussed.
The company is a major player in the Indian edible oil and food products sector.
“India is the largest importer of edible oil worldwide and 59 per cent of its imports consist of palm oil,“ he said in a posting on the X platform today.
Yesterday Prime Minister Datuk Seri Anwar Ibrahim accompanied by Tengku Zafrul held a meeting with representatives from three major Indian companies namely Tata Consultancy Services (TCS), HCL Technologies (HCLTech) and Emami Agrotech in New Delhi. More The SunMY
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Oil Palm Production : Nigeria Set To Partner Malaysia, Indonesia
Nigeria is set to bring back the glory of oil palm as government is finalizing modalities to partner Malaysia and Indonesia to explore production potential and export driven strategies of the industry.
This is even as Nigeria seeks inclusion in the membership of Council of Palm Oil Producing Countries (CPOPC).
In the 1960s, Nigeria was a dominant force in palm oil production, leading the global market with over 60 per cent of the world’s palm oil.
Due to neglect and lack of strategic investment in the subsector by successive governments, Nigeria’s production capacity dwindled, putting the country on the fifth position globally, lagging behind Indonesia, Malaysia, Thailand, and even Colombia.
All that is about to change. More AIT
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Indonesian exports of palm oil wastes and residues including palm oil mill effluent (Pome) oil may soon be subjected to stricter export regulations, according to a draft document from its trade ministry.
The ministry released the draft after a meeting with biofuel feedstock exporters on 20 August. The timeline for a decision on finalising the regulation is still unclear, although some market participants said it could be made by this month.
Exports of Pome oil, high acid palm oil residue (Hapor) and empty fruit bunches (EFB) oil under the HS code 2306.60.90 are expected to require export permits, a change from the previous requirement of only export rights. While more details were not disclosed, meeting domestic market obligations (DMO) is usually a prerequisite to get export permits, suppliers said. This means that companies will need to sell a certain amount of cooking oil within Indonesia — or buy export quotas or credits from palm oil refineries around $15-$20/t — before they are able to export these products. This has led to expectations of potentially tightened feedstock exports.
Refineries who sell cooking oil volumes to remote areas of Indonesia will also receive higher export quotas. As of January 2023, only crude palm oil (CPO), refined, bleached and deodorised (RBD) palm oil, RBD palm olein and used cooking oil (UCO) were subject to the DMO requirements.
The previously-set domestic Highest Retail Price (Harga Eceran Tertinggi or HET) for cooking oil sold to consumers at 14,000 rupiah/l is now Rp15,700/l. This is likely because of higher CPO prices and packaging costs, a Indonesia-based supplier said. But market participants said they were also anticipating this increase previously.
The higher HET implies that companies' cost of acquiring export permits in the medium to long term could fall, having sold cooking oil at higher prices domestically, market participants said. Argus Media
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How ‘green’ electricity from wood harms the planet — and people
Many nations have embraced burning wood pellets to produce electricity — under the assumption that it is carbon neutral. But research shows this approach can boost greenhouse-gas emissions and threaten the health of local communities.
The town of Hamlet, North Carolina, seemed to hit the jackpot in September 2014. After the community had endured decades of economic despair and high poverty rates, the world’s largest producer of wood-based energy, Enviva Biomass, announced plans to open a major facility nearby that would turn wood into dense pellets that can be used as fuel. The project promised 80 well-paying jobs for residents in Hamlet and the surrounding area. It seemed like a win for both local people and the planet.
The company’s plant, which opened in 2019, is part of a global expansion in the use of wood — or solid biomass — to generate electricity. Pellet companies advertise their products as a renewable-energy source that lowers carbon emissions, and the European Union agrees, which has spurred many countries, including the United Kingdom, Belgium and Denmark, to embrace this form of energy. As with similar projects worldwide, Enviva Biomass, which is based in Bethesda, Maryland, said that its operations in Hamlet would displace fossil fuels, grow more trees and help to fight climate change.
But opposition is building on many fronts. An expanding body of research shows that burning solid biomass to generate electricity often emits huge amounts of carbon — even more than burning coal does. In February 2021, more than 500 scientists and economists signed a letter to US president Joe Biden and other world leaders urging them to not support using wood to generate energy, arguing that it harms biodiversity and increases carbon emissions. Although pellet companies advertise that their operations consume low-quality wood, this claim has come under increased scrutiny, with mounting evidence of significant deforestation around wood-pellet plants. More Nature
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Biomass co-firing boosts economy, cuts emissions: PLN Energi Primer
Jakarta (ANTARA) - PLN Energi Primer asserts that substituting coal with biomass co-firing at steam power plants (PLTUs) has created a positive economic multiplier effect.
The company's CEO, Iwan Agung Firstantara, explained that the multiplier effect involves 1.25 million people working in biomass supply chains, from waste collection and production to building the biomass ecosystem at 52 PLTUs in Indonesia.
"This circular economy generates Rp9.34 trillion (around US$606.04 million), empowers 1.25 million people, and produces 10 million tons of biomass annually," he said on Wednesday.
Co-firing, the practice of increasing renewable energy use from biomass, sources organic solid products like rice husks, wood chips, and palm shells.
Beyond economic benefits, biomass use at steam power plants accelerates efforts to achieve net zero emissions by 2060.
"We've reduced emissions by 11 million tons per year," Firstantara noted.
In 2021, PLN Energi Primer substituted 250,000 tons of coal with biomass. This figure rose to 500,000 tons in 2022 and 1 million tons in 2023.
"Our target for this year is over 2 million tons of biomass co-firing," he said. More Antara News
Malaysia is always ready to fulfill demand for palm oil in India - Tengku Zafrul
KUALA LUMPUR: Malaysia is always ready to meet the increasing demand for palm oil in India through the cooperation with major importing companies such as Emami Agrotech Ltd.
Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said Emami Agrotech is one of the largest palm oil importers in India, and during his recent meeting with its executive director Manush Goenka in India, the potential for Emami to increase its palm oil imports from Malaysia was discussed.
The company is a major player in the Indian edible oil and food products sector.
“India is the largest importer of edible oil worldwide and 59 per cent of its imports consist of palm oil,“ he said in a posting on the X platform today.
Yesterday Prime Minister Datuk Seri Anwar Ibrahim accompanied by Tengku Zafrul held a meeting with representatives from three major Indian companies namely Tata Consultancy Services (TCS), HCL Technologies (HCLTech) and Emami Agrotech in New Delhi. More The SunMY
--------
Oil Palm Production : Nigeria Set To Partner Malaysia, Indonesia
Nigeria is set to bring back the glory of oil palm as government is finalizing modalities to partner Malaysia and Indonesia to explore production potential and export driven strategies of the industry.
This is even as Nigeria seeks inclusion in the membership of Council of Palm Oil Producing Countries (CPOPC).
In the 1960s, Nigeria was a dominant force in palm oil production, leading the global market with over 60 per cent of the world’s palm oil.
Due to neglect and lack of strategic investment in the subsector by successive governments, Nigeria’s production capacity dwindled, putting the country on the fifth position globally, lagging behind Indonesia, Malaysia, Thailand, and even Colombia.
All that is about to change. More AIT
--------
Indonesian exports of palm oil wastes and residues including palm oil mill effluent (Pome) oil may soon be subjected to stricter export regulations, according to a draft document from its trade ministry.
The ministry released the draft after a meeting with biofuel feedstock exporters on 20 August. The timeline for a decision on finalising the regulation is still unclear, although some market participants said it could be made by this month.
Exports of Pome oil, high acid palm oil residue (Hapor) and empty fruit bunches (EFB) oil under the HS code 2306.60.90 are expected to require export permits, a change from the previous requirement of only export rights. While more details were not disclosed, meeting domestic market obligations (DMO) is usually a prerequisite to get export permits, suppliers said. This means that companies will need to sell a certain amount of cooking oil within Indonesia — or buy export quotas or credits from palm oil refineries around $15-$20/t — before they are able to export these products. This has led to expectations of potentially tightened feedstock exports.
Refineries who sell cooking oil volumes to remote areas of Indonesia will also receive higher export quotas. As of January 2023, only crude palm oil (CPO), refined, bleached and deodorised (RBD) palm oil, RBD palm olein and used cooking oil (UCO) were subject to the DMO requirements.
The previously-set domestic Highest Retail Price (Harga Eceran Tertinggi or HET) for cooking oil sold to consumers at 14,000 rupiah/l is now Rp15,700/l. This is likely because of higher CPO prices and packaging costs, a Indonesia-based supplier said. But market participants said they were also anticipating this increase previously.
The higher HET implies that companies' cost of acquiring export permits in the medium to long term could fall, having sold cooking oil at higher prices domestically, market participants said. Argus Media
--------
How ‘green’ electricity from wood harms the planet — and people
Many nations have embraced burning wood pellets to produce electricity — under the assumption that it is carbon neutral. But research shows this approach can boost greenhouse-gas emissions and threaten the health of local communities.
The town of Hamlet, North Carolina, seemed to hit the jackpot in September 2014. After the community had endured decades of economic despair and high poverty rates, the world’s largest producer of wood-based energy, Enviva Biomass, announced plans to open a major facility nearby that would turn wood into dense pellets that can be used as fuel. The project promised 80 well-paying jobs for residents in Hamlet and the surrounding area. It seemed like a win for both local people and the planet.
The company’s plant, which opened in 2019, is part of a global expansion in the use of wood — or solid biomass — to generate electricity. Pellet companies advertise their products as a renewable-energy source that lowers carbon emissions, and the European Union agrees, which has spurred many countries, including the United Kingdom, Belgium and Denmark, to embrace this form of energy. As with similar projects worldwide, Enviva Biomass, which is based in Bethesda, Maryland, said that its operations in Hamlet would displace fossil fuels, grow more trees and help to fight climate change.
But opposition is building on many fronts. An expanding body of research shows that burning solid biomass to generate electricity often emits huge amounts of carbon — even more than burning coal does. In February 2021, more than 500 scientists and economists signed a letter to US president Joe Biden and other world leaders urging them to not support using wood to generate energy, arguing that it harms biodiversity and increases carbon emissions. Although pellet companies advertise that their operations consume low-quality wood, this claim has come under increased scrutiny, with mounting evidence of significant deforestation around wood-pellet plants. More Nature
--------
Biomass co-firing boosts economy, cuts emissions: PLN Energi Primer
Jakarta (ANTARA) - PLN Energi Primer asserts that substituting coal with biomass co-firing at steam power plants (PLTUs) has created a positive economic multiplier effect.
The company's CEO, Iwan Agung Firstantara, explained that the multiplier effect involves 1.25 million people working in biomass supply chains, from waste collection and production to building the biomass ecosystem at 52 PLTUs in Indonesia.
"This circular economy generates Rp9.34 trillion (around US$606.04 million), empowers 1.25 million people, and produces 10 million tons of biomass annually," he said on Wednesday.
Co-firing, the practice of increasing renewable energy use from biomass, sources organic solid products like rice husks, wood chips, and palm shells.
Beyond economic benefits, biomass use at steam power plants accelerates efforts to achieve net zero emissions by 2060.
"We've reduced emissions by 11 million tons per year," Firstantara noted.
In 2021, PLN Energi Primer substituted 250,000 tons of coal with biomass. This figure rose to 500,000 tons in 2022 and 1 million tons in 2023.
"Our target for this year is over 2 million tons of biomass co-firing," he said. More Antara News
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August 21, 2024
Malaysia's FGV produces first batch of EUDR-compliant crude palm kernel oil
Leading Malaysian agribusiness FGV Holding has produced its first batch of European Union Deforestation Regulation (EUDR)-compliant crude palm kernel oil (CPKO), New Straits Times reported.
The achievement made FGV one of the first Malaysian companies to produce EUDR-compliant CPKO, the company said on 8 August.
A legislative framework aimed at ensuring that products imported into the European Union (EU) are free from deforestation and forest degradation activities, the EUDR is set to take effect later this year.
From 30 December 2024, companies will have to prove that the soya, cattle, palm oil, wood, cocoa, coffee and rubber products that they import into the EU, export from the EU or place on the EU market do not come from any area deforested since December 2020.
“Our production of EUDR-compliant CPKO marks a major advancement for our operations and underscores our dedication to meeting stringent global environmental and social standards,” FGV group CEO Nazrul Mansor said.
FGV said it had focused on sourcing its fresh fruit bunches (FFB) from three key sources: its own estates, FELDA’s settlers, and independent smallholders who were already in line with the EUDR, Malaysian Sustainable Palm Oil Certification (MSPO) or Roundtable on Sustainable Palm Oil (RSPO) traceability requirements. More OFI
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MPOC Shifts Focus To Alternative Markets Amid Rising EU Costs – CEO
KOTA KINABALU, Aug 20 (Bernama) -- As the European Union Deforestation Regulation (EUDR) raises the cost of doing business in Europe, the Malaysian Palm Oil Council (MPOC) is actively exploring alternative markets that offer greater accessibility and fairness.
MPOC chief executive officer, Belvinder Kaur Sron, said markets under consideration include India, China, ASEAN, Africa and the Middle East, which could provide significant opportunities for Malaysia’s industry players and smallholders.
Although Europe remains an important market for Malaysia, Belvinder noted that the implementation of the EUDR poses a significant challenge.
Global data research indicates that compliance could cost palm oil producers up to US$1.5 billion. (US$1 = RM4.38).
“The EUDR is a non-tariff barrier imposed by the European Union (EU). It discriminates against Malaysia’s four major commodities—palm oil, rubber, timber and cocoa—by restricting open market access.
“The regulation’s stringent requirements on traceability and geolocation would impose—I'm not using the word 'could,' it would impose—additional financial and technical burdens on Malaysian companies, particularly smallholders, potentially excluding them from the EU supply chain,” she said. More Bernama
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Palm oil the main driver of Malaysia's agri-exports
KUALA LUMPUR, Aug 21 — Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani underscored the critical role of his ministry in driving the national economy today, revealing that it contributes nearly RM160 billion in exports.
He said that palm oil alone accounted for over RM100 billion of that total.
Johari also highlighted that the palm oil sector sustains more than 1.25 million jobs across the country, including 550,000 smallholders.
In terms of palm oil production, he said Malaysia manages 1.5 million hectares of land cultivated by smallholders, compared to 4.2 million hectares by the private sector.
Johari then said that as the world's second-largest palm oil exporter, Malaysia prioritises sustainability to avoid potential export bans related to environmental issues and to guarantee that Malaysian products can be freely exported across the globe without hindrances.
"To improve productivity, the ministry, through the Malaysian Palm Oil Board (MPOB), is working to increase yields by using high-quality seeds and implementing best practices in plantation management.
"We also focus on using good quality materials such as fertilisers and other inputs to prevent a decline in our industry, as seen in the rubber sector,” he added More Malay Mail
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India and Malaysia look to reset relations with trade boost
NEW DELHI, Aug 20 (Reuters) - Prime ministers of India and Malaysia sought to reset relations between the two countries on Tuesday as they agreed to boost trade, movement of workers and the use of their own currencies to settle bilateral transactions.
Malaysia is home to nearly 3 million people of Indian heritage, but relations soured around late 2019 following remarks by largely Muslim Malaysia's then-Prime Minister Mahathir Mohamad against New Delhi removing the autonomy of India's only Muslim-majority region Kashmir.
Malaysia is home to nearly 3 million people of Indian heritage, but relations soured around late 2019 following remarks by largely Muslim Malaysia's then-Prime Minister Mahathir Mohamad against New Delhi removing the autonomy of India's only Muslim-majority region Kashmir.
That had also hit purchases of Malaysian palm oil by India, the world's biggest buyer of edible oils like palm.
But the Malaysian approach has changed under Prime Minister Anwar Ibrahim, who took office in 2022 and previously told Reuters he was keen to have good ties with India.
The two countries started settling trade in their own rupee and ringgit currencies in April last year, and India's palm oil imports from Malaysia has also increased.
"With the support of Prime Minister Anwar Ibrahim, there has been a new momentum and energy in our partnership," Modi said, as Anwar stood by his side during his first visit to New Delhi as prime minister.
"Today we have decided that our partnership will be elevated to a 'Comprehensive Strategic Partnership'. We believe that there is still a lot of potential in economic cooperation. Bilateral trade and investment should be expanded." Reuters
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EAEU, Indonesia Finalising Talks On Free Trade Deal: Russian Diplomat
MOSCOW, Aug 20 (Bernama-Sputnik) -- The negotiations between the Eurasian Economic Union (EAEU) and Indonesia on a free trade agreement are at the final stage, and its text is being finalised, director of the First CIS Department, Mikael Agasandyan, told Sputnik.
"The talks between the EAEU and Indonesia are at the final stage. The fifth round of consultations was held in late July, and the parties are finalising the text of the draft agreement," Agasandyan said when asked about the creation of free trade zones with various countries.
In July, Russian President Vladimir Putin held a meeting with Indonesian Defence Minister and President-elect Prabowo Subianto during which he stressed that the free trade agreement between the EAEU and Indonesia would play a significant role in developing trade relations between the two countries. Bernama
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US largely absent from UK’s first 2024 biofuel data; Asia volumes decline
The UK government’s first release of provisional biofuel data for the calendar year to the end of July 2024, published on Wednesday August 14, reveals a notable decline in renewable fuel activity compared with the same period last year
Major suppliers to the UK, including the US, China, Indonesia and Malaysia, appear to have significantly reduced their feedstock supplies this year, with the US notably having made no hydrotreated vegetable oil (HVO) shipments in 2024.
This development bucks a trend during which those four countries – each of which is a significant supplier of feedstocks or fuels derived from palm products or used cooking oil (UCO) – have been taking a bigger share of the UK’s feedstock market in recent years.
But overall volumes have declined because decisions were made, perhaps for administrative reasons, to delay declarations of origins and types of fuels. This came amid increased scrutiny of some flows as well as concerns about a potential increase in fuels originating in China or the US.
Participating parties are not required to release this data until the compilation of the final report, at the end of the compliance period in September 2025, and analysis of the data suggests that hesitation in declaring volumes, feedstocks and origins is playing a part in clouding the data.
According to the report, the total supplied volume of renewable fuel has dropped by 13% to 1.71 billion liters in 2024 from 1.97 billion liters in the corresponding data release for 2023. More Fast Markets
Malaysia's FGV produces first batch of EUDR-compliant crude palm kernel oil
Leading Malaysian agribusiness FGV Holding has produced its first batch of European Union Deforestation Regulation (EUDR)-compliant crude palm kernel oil (CPKO), New Straits Times reported.
The achievement made FGV one of the first Malaysian companies to produce EUDR-compliant CPKO, the company said on 8 August.
A legislative framework aimed at ensuring that products imported into the European Union (EU) are free from deforestation and forest degradation activities, the EUDR is set to take effect later this year.
From 30 December 2024, companies will have to prove that the soya, cattle, palm oil, wood, cocoa, coffee and rubber products that they import into the EU, export from the EU or place on the EU market do not come from any area deforested since December 2020.
“Our production of EUDR-compliant CPKO marks a major advancement for our operations and underscores our dedication to meeting stringent global environmental and social standards,” FGV group CEO Nazrul Mansor said.
FGV said it had focused on sourcing its fresh fruit bunches (FFB) from three key sources: its own estates, FELDA’s settlers, and independent smallholders who were already in line with the EUDR, Malaysian Sustainable Palm Oil Certification (MSPO) or Roundtable on Sustainable Palm Oil (RSPO) traceability requirements. More OFI
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MPOC Shifts Focus To Alternative Markets Amid Rising EU Costs – CEO
KOTA KINABALU, Aug 20 (Bernama) -- As the European Union Deforestation Regulation (EUDR) raises the cost of doing business in Europe, the Malaysian Palm Oil Council (MPOC) is actively exploring alternative markets that offer greater accessibility and fairness.
MPOC chief executive officer, Belvinder Kaur Sron, said markets under consideration include India, China, ASEAN, Africa and the Middle East, which could provide significant opportunities for Malaysia’s industry players and smallholders.
Although Europe remains an important market for Malaysia, Belvinder noted that the implementation of the EUDR poses a significant challenge.
Global data research indicates that compliance could cost palm oil producers up to US$1.5 billion. (US$1 = RM4.38).
“The EUDR is a non-tariff barrier imposed by the European Union (EU). It discriminates against Malaysia’s four major commodities—palm oil, rubber, timber and cocoa—by restricting open market access.
“The regulation’s stringent requirements on traceability and geolocation would impose—I'm not using the word 'could,' it would impose—additional financial and technical burdens on Malaysian companies, particularly smallholders, potentially excluding them from the EU supply chain,” she said. More Bernama
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Palm oil the main driver of Malaysia's agri-exports
KUALA LUMPUR, Aug 21 — Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani underscored the critical role of his ministry in driving the national economy today, revealing that it contributes nearly RM160 billion in exports.
He said that palm oil alone accounted for over RM100 billion of that total.
Johari also highlighted that the palm oil sector sustains more than 1.25 million jobs across the country, including 550,000 smallholders.
In terms of palm oil production, he said Malaysia manages 1.5 million hectares of land cultivated by smallholders, compared to 4.2 million hectares by the private sector.
Johari then said that as the world's second-largest palm oil exporter, Malaysia prioritises sustainability to avoid potential export bans related to environmental issues and to guarantee that Malaysian products can be freely exported across the globe without hindrances.
"To improve productivity, the ministry, through the Malaysian Palm Oil Board (MPOB), is working to increase yields by using high-quality seeds and implementing best practices in plantation management.
"We also focus on using good quality materials such as fertilisers and other inputs to prevent a decline in our industry, as seen in the rubber sector,” he added More Malay Mail
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India and Malaysia look to reset relations with trade boost
NEW DELHI, Aug 20 (Reuters) - Prime ministers of India and Malaysia sought to reset relations between the two countries on Tuesday as they agreed to boost trade, movement of workers and the use of their own currencies to settle bilateral transactions.
Malaysia is home to nearly 3 million people of Indian heritage, but relations soured around late 2019 following remarks by largely Muslim Malaysia's then-Prime Minister Mahathir Mohamad against New Delhi removing the autonomy of India's only Muslim-majority region Kashmir.
Malaysia is home to nearly 3 million people of Indian heritage, but relations soured around late 2019 following remarks by largely Muslim Malaysia's then-Prime Minister Mahathir Mohamad against New Delhi removing the autonomy of India's only Muslim-majority region Kashmir.
That had also hit purchases of Malaysian palm oil by India, the world's biggest buyer of edible oils like palm.
But the Malaysian approach has changed under Prime Minister Anwar Ibrahim, who took office in 2022 and previously told Reuters he was keen to have good ties with India.
The two countries started settling trade in their own rupee and ringgit currencies in April last year, and India's palm oil imports from Malaysia has also increased.
"With the support of Prime Minister Anwar Ibrahim, there has been a new momentum and energy in our partnership," Modi said, as Anwar stood by his side during his first visit to New Delhi as prime minister.
"Today we have decided that our partnership will be elevated to a 'Comprehensive Strategic Partnership'. We believe that there is still a lot of potential in economic cooperation. Bilateral trade and investment should be expanded." Reuters
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EAEU, Indonesia Finalising Talks On Free Trade Deal: Russian Diplomat
MOSCOW, Aug 20 (Bernama-Sputnik) -- The negotiations between the Eurasian Economic Union (EAEU) and Indonesia on a free trade agreement are at the final stage, and its text is being finalised, director of the First CIS Department, Mikael Agasandyan, told Sputnik.
"The talks between the EAEU and Indonesia are at the final stage. The fifth round of consultations was held in late July, and the parties are finalising the text of the draft agreement," Agasandyan said when asked about the creation of free trade zones with various countries.
In July, Russian President Vladimir Putin held a meeting with Indonesian Defence Minister and President-elect Prabowo Subianto during which he stressed that the free trade agreement between the EAEU and Indonesia would play a significant role in developing trade relations between the two countries. Bernama
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US largely absent from UK’s first 2024 biofuel data; Asia volumes decline
The UK government’s first release of provisional biofuel data for the calendar year to the end of July 2024, published on Wednesday August 14, reveals a notable decline in renewable fuel activity compared with the same period last year
Major suppliers to the UK, including the US, China, Indonesia and Malaysia, appear to have significantly reduced their feedstock supplies this year, with the US notably having made no hydrotreated vegetable oil (HVO) shipments in 2024.
This development bucks a trend during which those four countries – each of which is a significant supplier of feedstocks or fuels derived from palm products or used cooking oil (UCO) – have been taking a bigger share of the UK’s feedstock market in recent years.
But overall volumes have declined because decisions were made, perhaps for administrative reasons, to delay declarations of origins and types of fuels. This came amid increased scrutiny of some flows as well as concerns about a potential increase in fuels originating in China or the US.
Participating parties are not required to release this data until the compilation of the final report, at the end of the compliance period in September 2025, and analysis of the data suggests that hesitation in declaring volumes, feedstocks and origins is playing a part in clouding the data.
According to the report, the total supplied volume of renewable fuel has dropped by 13% to 1.71 billion liters in 2024 from 1.97 billion liters in the corresponding data release for 2023. More Fast Markets
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August 20, 2024
Indonesia lowers domestic sales mandate for palm oil sellers, raises price cap
Indonesia lowered its mandate for the amount of palm oil companies must allocate to a government run-cooking oil program and raised the price cap under its Domestic Market Obligation policy Aug. 19, to enhance participation from local sellers.
The new DMO target is set at 250,000 metric tons per month, down from 300,000 t/m, Trade Minister Zulkifli Hasan said, adding that the ruling has been in effect since Aug. 14.
Indonesia, the world's largest palm oil producer and supplier, set up the DMO policy in early 2022, under which palm oil producers contribute a government-mandated amount of cooking oil for local buyers at subsidized rates in exchange for export permits.
Jakarta also raised the price cap on subsidized palm oil under its Minyakita scheme to Rupiah 15,700 ($1) per liter, from Rupiah 14,000/liter, effective Aug. 14.
The Minyakita scheme allows economically weaker citizens to purchase cooking oil collected from the DMO policy at a lower price set by the government. In the past year, various stakeholders, such as the Association of Palm Oil Producers, have called for an increase in the price ceiling, while consumer organizations have opposed it. SP Global
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B50 biodiesel production test in S. Kalimantan, a milestone in energy independence
Minister of Agriculture, Andi Amran Sulaiman, on Sunday, August 18, 2024, witnessed a successful trial of B50 biodiesel production at PT. Jhonlin Agro Raya’s biodiesel plant in Batulicin, Tanah Bumbu, South Kalimantan, marking a significant step toward national energy independence and supporting Indonesia’s vision for sustainable future energy.
“This is a happy day, as we’ve successfully tested B50, and the engine runs perfectly,” Amran said.
He emphasized that this trial is a crucial step toward realizing national energy independence, aligning with Indonesia’s vision for sustainable energy in the next 5-10 years.
Amran highlighted that the demand for palm oil-based biodiesel is substantial, particularly for domestic consumption to strengthen national energy security.
According to the 2023 provisional data from the Directorate General of Plantations, the Ministry of Agriculture, Indonesia has 16.8 million hectares of palm oil plantations, producing 46.9 million tons of palm oil.
Amran said further that Indonesia has been gradually increasing the biodiesel blend since 2015, starting with B15, then moving to B20 in 2019, B30 in 2022, and now B35 in 2023. The implementation of B50 is expected to play a key role in furthering this progress.
Andi Nur Alamsyah, Chairman of the B50 Working Group, said that B50 biodiesel is crucial for enhancing energy security, a vital component of national resilience. Moreover, it can reduce carbon emissions, improve the trade balance, and boost farmer welfare.
However, he acknowledged challenges in developing B50 biodiesel, not only in securing raw materials like Crude Palm Oil (CPO) but also in downstream processes. These challenges include increasing the installed capacity and improving the production efficiency of biodiesel plants up to 90 percent. More Indonesia Business Post
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Malaysia’s Anwar Ibrahim visits India to reset ties, boost Brics membership bid
The first visit to India by PM Anwar Ibrahim is timely due to China’s rising dominance of Malaysia’s foreign policy space, analysts say
Malaysia’s Anwar Ibrahim on Monday makes his debut trip to India as prime minister, seeking support for his country’s application to join the Brics bloc and to rekindle a bilateral relationship that was worth over US$16 billion in trade last year.
During its first prime minister-led delegation’s visit to India since 2018, Malaysia hopes to bolster ties with one of Asia’s fastest-growing economies. India is the largest buyer of Malaysian palm oil and a key exporter of rice to the Southeast Asian nation.
The application to join Brics, which was submitted to the current chairman Russia, is aimed at cushioning a potential impact on Malaysia from the escalating US-China trade and tech war, analysts say.
Brics comprises founder members Brazil, Russia, India, China and South Africa, as well as Saudi Arabia, Iran, Ethiopia, Egypt and the United Arab Emirates, offering preferential trade and investment with countries covering 45 per cent of the world’s population.
Anwar’s three-day visit is also a chance to reset Malaysia’s relations with India, analysts say, following a hangover from a spat with New Delhi under a previous Malaysian administration and China increasingly dominating the Southeast Asian nation’s foreign policy space. SCMP
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Malaysia’s grand strategy leans East
William Case-University of Nottingham Malaysia
In Brief
Malaysia is recalibrating its grand strategy, shifting from middlepowership to a stronger alignment with China. This move aims to boost economic growth and secure BRICS membership but may strain ties with the United States and weaken ASEAN commitments. Driven by changing domestic and regional dynamics, this shift risks reducing Malaysia's bargaining power and increasing dependence on China. Balancing economic benefits with diplomatic risks will be crucial as Malaysia navigates its evolving role on the global stage.
Malaysia’s ‘grand strategy’ is two-pronged. By clustering with ASEAN, Malaysia has attained de facto ‘middlepowership’. This positioning has long helped Malaysia balance relations with the United States and China, leveraging resources from both to boost its economy. But today, Malaysia perceives China as the better bet for economic expansion, and is recalibrating its grand strategy in ways that tilt towards Beijing.
Malaysia still values ASEAN, but finds it regionally confined and internally divided over its approach to China. Malaysia seeks now to join the BRICS, thereby gaining a broader and ideologically-unified base from which more deeply to enter China’s orbit. But this recalibration could dilute Malaysia’s commitments to ASEAN and strain relations with the United States. By tilting from even-handedness to one-sided preferencing, Malaysia risks shrinking its bargaining power and slipping into a subservient posture.
Examining the sources of Malaysia’s middlepowership is crucial for understanding the recalibration of its grand strategy. The country’s population is modest in size and sorely polarised on issues of identity. It suffers from early deindustrialisation and a halting transition to more generative services. Deadweight state enterprises, unproductive small businesses and contentious palm oil sales burden its economy. Malaysia’s military industrial production is distorted by patronage and its capacity for force projection is scant. More East Asia Forum
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Palm oil downstream industry in Sabah attracting Chinese investors
KOTA KINABALU: Sabah's palm oil downstream industry recently attracted three Chinese enterprises for an on-site visit in the state, said Datuk Chan Foong Hin.
The deputy plantation and commodities minister said these companies were looking into potential avenues for investment and collaboration in setting up operations in Sabah.
The Chinese delegation had expressed keen interest in Sabah's palm oil downstream industry, particularly in value-added processing of palm kernel cake (PKC), and the production of biomass energy and sustainable aviation fuel (SAF) from palm oil mill effluent (POME) and pretreated used cooking oil (UCO).
Chan said, as Malaysia's leading palm oil-producing state, it is time for Sabah to boost the development of its downstream industry.
He said by focusing on the production of high-value-added palm oil products, Sabah can generate substantial economic benefits.
"Earlier this year, I made several visits to China to promote collaboration opportunities between Malaysia and China in the plantation and commodities sectors. New Straits Times
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Cooperatives Need To Play Proactive Role To Develop Abandoned Oil Palm Estates
MELAKA, Aug 20 (Bernama) -- The Sustainable Oil Palm Growers Cooperatives (KPSM) under the Malaysian Palm Oil Board (MPOB) are urged to play a proactive role so that abandoned palm plantations can be developed through replanting projects in an effort to increase the nation's palm oil production.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said there are around 1.7 million hectares of oil palm plantations that are over 19 years old in the country and if not dealt with immediately it will have a significant impact on the country's palm oil production and export.
"It is understood that the country's palm oil production over the past 10 years has decreased from 19.6 million tonnes to 18.5 million tonnes and one of the reasons is that we are not replanting according to the set standard which is to do at least four or five per cent replanting but only 1.8 per cent per year.
"Because this situation has left Malaysia behind, hence we want the cooperatives created under MPOB to play a role by meeting and discussing with smallholders who are no longer interested in replanting so that they can handle the replanting and the government will provide assistance for this effort," he told the media after officiating at the 2024 National Oil Palm Smallholder Conference in Banda Hilir here today.
The conference was also attended by MPOB chairman Datuk Mohamad Helmy Othman Basha and MPOB director-general Datuk Dr Ahmad Parveez Ghulam Kadir.
He added that applications for a total of 5,900 hectares of oil palm replanting have been received so far and his ministry is targeting around 9,000 hectares of abandoned plantations so that replanting can be done by next year.
"We will also apply through the Ministry of Finance to replant the 9,000 hectares in order to ensure that our palm oil production does not decrease considering that it is the country's main export with a value of over RM100 billion.
He said the ministry will also ensure the replanting through a sustainable process that needs to be practised by a total of 442,000 smallholders who cultivate around 1.5 million hectares of the country's oil palm area in an effort to penetrate new markets such as Africa, the Middle East and India. Bernama
Indonesia lowers domestic sales mandate for palm oil sellers, raises price cap
Indonesia lowered its mandate for the amount of palm oil companies must allocate to a government run-cooking oil program and raised the price cap under its Domestic Market Obligation policy Aug. 19, to enhance participation from local sellers.
The new DMO target is set at 250,000 metric tons per month, down from 300,000 t/m, Trade Minister Zulkifli Hasan said, adding that the ruling has been in effect since Aug. 14.
Indonesia, the world's largest palm oil producer and supplier, set up the DMO policy in early 2022, under which palm oil producers contribute a government-mandated amount of cooking oil for local buyers at subsidized rates in exchange for export permits.
Jakarta also raised the price cap on subsidized palm oil under its Minyakita scheme to Rupiah 15,700 ($1) per liter, from Rupiah 14,000/liter, effective Aug. 14.
The Minyakita scheme allows economically weaker citizens to purchase cooking oil collected from the DMO policy at a lower price set by the government. In the past year, various stakeholders, such as the Association of Palm Oil Producers, have called for an increase in the price ceiling, while consumer organizations have opposed it. SP Global
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B50 biodiesel production test in S. Kalimantan, a milestone in energy independence
Minister of Agriculture, Andi Amran Sulaiman, on Sunday, August 18, 2024, witnessed a successful trial of B50 biodiesel production at PT. Jhonlin Agro Raya’s biodiesel plant in Batulicin, Tanah Bumbu, South Kalimantan, marking a significant step toward national energy independence and supporting Indonesia’s vision for sustainable future energy.
“This is a happy day, as we’ve successfully tested B50, and the engine runs perfectly,” Amran said.
He emphasized that this trial is a crucial step toward realizing national energy independence, aligning with Indonesia’s vision for sustainable energy in the next 5-10 years.
Amran highlighted that the demand for palm oil-based biodiesel is substantial, particularly for domestic consumption to strengthen national energy security.
According to the 2023 provisional data from the Directorate General of Plantations, the Ministry of Agriculture, Indonesia has 16.8 million hectares of palm oil plantations, producing 46.9 million tons of palm oil.
Amran said further that Indonesia has been gradually increasing the biodiesel blend since 2015, starting with B15, then moving to B20 in 2019, B30 in 2022, and now B35 in 2023. The implementation of B50 is expected to play a key role in furthering this progress.
Andi Nur Alamsyah, Chairman of the B50 Working Group, said that B50 biodiesel is crucial for enhancing energy security, a vital component of national resilience. Moreover, it can reduce carbon emissions, improve the trade balance, and boost farmer welfare.
However, he acknowledged challenges in developing B50 biodiesel, not only in securing raw materials like Crude Palm Oil (CPO) but also in downstream processes. These challenges include increasing the installed capacity and improving the production efficiency of biodiesel plants up to 90 percent. More Indonesia Business Post
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Malaysia’s Anwar Ibrahim visits India to reset ties, boost Brics membership bid
The first visit to India by PM Anwar Ibrahim is timely due to China’s rising dominance of Malaysia’s foreign policy space, analysts say
Malaysia’s Anwar Ibrahim on Monday makes his debut trip to India as prime minister, seeking support for his country’s application to join the Brics bloc and to rekindle a bilateral relationship that was worth over US$16 billion in trade last year.
During its first prime minister-led delegation’s visit to India since 2018, Malaysia hopes to bolster ties with one of Asia’s fastest-growing economies. India is the largest buyer of Malaysian palm oil and a key exporter of rice to the Southeast Asian nation.
The application to join Brics, which was submitted to the current chairman Russia, is aimed at cushioning a potential impact on Malaysia from the escalating US-China trade and tech war, analysts say.
Brics comprises founder members Brazil, Russia, India, China and South Africa, as well as Saudi Arabia, Iran, Ethiopia, Egypt and the United Arab Emirates, offering preferential trade and investment with countries covering 45 per cent of the world’s population.
Anwar’s three-day visit is also a chance to reset Malaysia’s relations with India, analysts say, following a hangover from a spat with New Delhi under a previous Malaysian administration and China increasingly dominating the Southeast Asian nation’s foreign policy space. SCMP
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Malaysia’s grand strategy leans East
William Case-University of Nottingham Malaysia
In Brief
Malaysia is recalibrating its grand strategy, shifting from middlepowership to a stronger alignment with China. This move aims to boost economic growth and secure BRICS membership but may strain ties with the United States and weaken ASEAN commitments. Driven by changing domestic and regional dynamics, this shift risks reducing Malaysia's bargaining power and increasing dependence on China. Balancing economic benefits with diplomatic risks will be crucial as Malaysia navigates its evolving role on the global stage.
Malaysia’s ‘grand strategy’ is two-pronged. By clustering with ASEAN, Malaysia has attained de facto ‘middlepowership’. This positioning has long helped Malaysia balance relations with the United States and China, leveraging resources from both to boost its economy. But today, Malaysia perceives China as the better bet for economic expansion, and is recalibrating its grand strategy in ways that tilt towards Beijing.
Malaysia still values ASEAN, but finds it regionally confined and internally divided over its approach to China. Malaysia seeks now to join the BRICS, thereby gaining a broader and ideologically-unified base from which more deeply to enter China’s orbit. But this recalibration could dilute Malaysia’s commitments to ASEAN and strain relations with the United States. By tilting from even-handedness to one-sided preferencing, Malaysia risks shrinking its bargaining power and slipping into a subservient posture.
Examining the sources of Malaysia’s middlepowership is crucial for understanding the recalibration of its grand strategy. The country’s population is modest in size and sorely polarised on issues of identity. It suffers from early deindustrialisation and a halting transition to more generative services. Deadweight state enterprises, unproductive small businesses and contentious palm oil sales burden its economy. Malaysia’s military industrial production is distorted by patronage and its capacity for force projection is scant. More East Asia Forum
--------
Palm oil downstream industry in Sabah attracting Chinese investors
KOTA KINABALU: Sabah's palm oil downstream industry recently attracted three Chinese enterprises for an on-site visit in the state, said Datuk Chan Foong Hin.
The deputy plantation and commodities minister said these companies were looking into potential avenues for investment and collaboration in setting up operations in Sabah.
The Chinese delegation had expressed keen interest in Sabah's palm oil downstream industry, particularly in value-added processing of palm kernel cake (PKC), and the production of biomass energy and sustainable aviation fuel (SAF) from palm oil mill effluent (POME) and pretreated used cooking oil (UCO).
Chan said, as Malaysia's leading palm oil-producing state, it is time for Sabah to boost the development of its downstream industry.
He said by focusing on the production of high-value-added palm oil products, Sabah can generate substantial economic benefits.
"Earlier this year, I made several visits to China to promote collaboration opportunities between Malaysia and China in the plantation and commodities sectors. New Straits Times
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Cooperatives Need To Play Proactive Role To Develop Abandoned Oil Palm Estates
MELAKA, Aug 20 (Bernama) -- The Sustainable Oil Palm Growers Cooperatives (KPSM) under the Malaysian Palm Oil Board (MPOB) are urged to play a proactive role so that abandoned palm plantations can be developed through replanting projects in an effort to increase the nation's palm oil production.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said there are around 1.7 million hectares of oil palm plantations that are over 19 years old in the country and if not dealt with immediately it will have a significant impact on the country's palm oil production and export.
"It is understood that the country's palm oil production over the past 10 years has decreased from 19.6 million tonnes to 18.5 million tonnes and one of the reasons is that we are not replanting according to the set standard which is to do at least four or five per cent replanting but only 1.8 per cent per year.
"Because this situation has left Malaysia behind, hence we want the cooperatives created under MPOB to play a role by meeting and discussing with smallholders who are no longer interested in replanting so that they can handle the replanting and the government will provide assistance for this effort," he told the media after officiating at the 2024 National Oil Palm Smallholder Conference in Banda Hilir here today.
The conference was also attended by MPOB chairman Datuk Mohamad Helmy Othman Basha and MPOB director-general Datuk Dr Ahmad Parveez Ghulam Kadir.
He added that applications for a total of 5,900 hectares of oil palm replanting have been received so far and his ministry is targeting around 9,000 hectares of abandoned plantations so that replanting can be done by next year.
"We will also apply through the Ministry of Finance to replant the 9,000 hectares in order to ensure that our palm oil production does not decrease considering that it is the country's main export with a value of over RM100 billion.
He said the ministry will also ensure the replanting through a sustainable process that needs to be practised by a total of 442,000 smallholders who cultivate around 1.5 million hectares of the country's oil palm area in an effort to penetrate new markets such as Africa, the Middle East and India. Bernama
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August 19, 2024
Malaysia halts new oil palm plantations to preserve forest cover — minister
SANDAKAN (Aug 18): Malaysia has pledged to halt new oil palm plantations in forest areas to support sustainability and maintain its current forest cover of 54%.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said that palm fruits harvested from deforested areas will be barred from entering palm oil mills.
"Factories accepting such fruits will be prohibited from exporting or selling their products. I believe we have enough oil palm plantations.
“We want to maintain our forest cover at 54% to enhance biodiversity protection, including safeguarding orangutans," he said during the World Orangutan Day 2024 event here on Sunday.
He emphasised that this policy has been communicated to industry players through various previous engagements.
Johari stressed the need for Malaysia to ensure that all palm oil exports meet sustainability standards to prove the country’s commitment.
He noted that Sabah alone has 1.5 million hectares of oil palm plantations. Despite this, the palm oil industry faces criticism and negative propaganda from some Western countries regarding its sustainability.
“The government is committed to addressing these false claims. We are making Malaysian Sustainable Palm Oil (MSPO) certification mandatory for all producers, including estates and smallholders,” Johari added.
With over 80% of Malaysia’s palm oil production destined for export, the MSPO certification is vital for assuring buyers of the products' sustainability and quality.
Johari highlighted that the palm oil sector significantly contributes to Malaysia’s economy, representing 3% of GDP, generating over RM100 billion in export revenue and providing around one million jobs. The Edge Malaysia
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Palm Oil Importing Countries To Be Invited To Join Orangutan Conservation In Sabah In-situ
Kuala Lumpur (AFP) – Malaysia is inviting countries that buy its palm oil to adopt orangutans but leave them in their natural habitat, local media reported, tweaking a plan that originally sought to send some abroad.
In a scheme modelled on China's "panda diplomacy", Malaysia announced in May that it would send the great apes as gifts to palm oil-purchasing countries, sparking an outcry among conservationists.
Orangutans are critically endangered, according to the International Union for Conservation of Nature (IUCN), and have lost habitat to logging and agricultural expansion -- particularly palm oil plantations.
On Sunday, Plantation and Commodities Minister Johari Abdul Ghani said any orangutans that were adopted would stay in Malaysia, the official Bernama news agency and other local media reported.
"All conservation activities will be carried out in forest areas or forest patches in oil palm plantations with high conservation value," he said, according to Bernama.
"These... areas provide space for orangutans to move freely, find food, and reproduce without interference from humans or other activities."
Buyers of Malaysian palm oil from around the world can "sponsor" one or more orangutans, and the funds collected will be used to implement conservation programmes for the animals, the minister said, according to The Star newspaper.
The programmes include "collaborating with a team of rangers, comprising experts, to monitor the presence, safety and condition of these wild animals", he said. France24
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Strengthening India-Malaysia Relations: Focus on Maritime Security and Palm Oil Cooperation
These talks are expected to cover a range of topics, including economic cooperation, defense collaboration, and regional security.
Marking his first official trip since taking office, Malaysia’s Prime Minister, Anwar bin Ibrahim, is coming on a State visit to India from August 19-21, 2024. The visit comes at a critical time for India-Malaysia relations, with both nations aiming to deepen cooperation in key areas such as maritime security, edible oil trade, and economic collaboration.
Strategic Bilateral Discussions
According to an official statement issued by the Ministry of External Affairs (MEA) on Tuesday (August 20, 2024) Prime Minister Anwar Ibrahim will be welcomed with a ceremonial reception at Rashtrapati Bhavan, followed by a visit to Raj Ghat to pay homage to Mahatma Gandhi. The main focus of the visit will be the bilateral discussions with Prime Minister Narendra Modi, where the leaders will explore ways to enhance their Enhanced Strategic Partnership, established in 2015. These talks are expected to cover a range of topics, including economic cooperation, defense collaboration, and regional security. Financial Express
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Focus on green energy as Malaysian PM arrives in India
KUALA LAMPUR: Visiting Malaysian PM Anwar Ibrahim is expected to make an emphatic pitch for Indian investments to revive his country's economy and amplify its digital and green energy sectors given India's solid experience and skill. Anwar is scheduled to reach Delhi on Monday evening. This will be Malaysia's first prime-ministerial visit to India since 2018.
He will meet PM Narendra Modi on August 20.
Sources said the two sides are working towards a substantive agreement on the start-ups sector. Currently, Indian start-ups like RazorPay and Pine Labs have nearly 70 percent share of the digital payment market, B2B, in Malaysia. Local start-ups, on the other hand, are tapping into India's digital technology sector.
Talking to TOI in Kuala Lumpur, industry leaders and policymakers said two important takeaways for Malaysia on bilateral trade would be - getting India's expertise from its National Skill Development programme, and collaboration and support on Electric Vehicles (EVs) and Artificial Intelligence. Times of India
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Indonesia Seeks Bigger Biodiesel Blend to Reduce Fossil Fuel Use
(Bloomberg) -- Indonesia is seeking to blend more palm oil with diesel to cut its use of fossil fuels, with the ambitious target raising the risk of tightening supply of the tropical oil.
The nation wants to increase the mix of palm-based biofuels with diesel to 50%, according to the agriculture ministry. The current blend is 35% — known as B35 — and Indonesia plans to expand that to B40 next year, provided trials on trains, ships and mining and agricultural machines are completed by December.
The biggest palm oil producer plans to commission economic and technical studies, conduct road trials and prepare necessary infrastructure to further cut its dependence on fossil fuels, the ministry said in a statement on Sunday. Such a move will also help the Southeast Asian nation reduce its trade deficit and boost farmer income, it added.
Indonesia’s green fuel plan raises the risk of a palm oil shortage and could boost prices, hurting countries like India, which imports about 60% of its vegetable oil needs. Palm oil exports from Indonesia fell about 3% to 32.2 million tons in 2023. Domestic consumption totaled 23.2 million tons, while 10.7 million tons were used to produce biofuels. Production is seen stagnating this year due to aging trees and adverse weather conditions.
The agriculture ministry said it will seek to secure palm oil for biofuels without disrupting its use in food, local industry and exports. The government is working with private companies to develop “degraded” land for palm cultivation exclusively for the energy sector, it said, without elaborating further. BNN Bloomberg
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Extreme weather in Europe reduces sunflower yields despite expanded planting
Despite an expansion in area planted with sunflowers in the European Union - harvest expectations are fading.
The reason is lower yields due to adverse weather conditions.
The unfavourable weather conditions in Europe prompted the EU Commission to lower its harvest estimate for sunflower seed significantly.
In the forecast published at the end of July, the harvest is expected at 10.1 million tonnes, 649,000 tonnes lower than the previous month.
In other words, the harvest would exceed the 2023 level by only 316,000 tonnes or 3%.
Foreseeable lower production in Bulgaria and Hungary, in particular, motivated the Commission to make this adjustment.
At 1.8 million tonnes and 1.9 million tonnes respectively, the estimates are down 278,000 tonnes and 251,000 tonnes respectively on those published in June.
Romania, the largest sunflower seed producer in the EU, is currently expected to harvest 2.5 million tonnes, around 147,000 tonnes less.
The main factors for the declines are the persistent drought and heat waves that impair the development of the crops. Daytime highs exceeded 40 °C in some places. If the lack of rain continues, more downward adjustments can be expected.
For the 2024 harvest, sunflower seed yield is currently estimated at 20.9 decitonnes per hectare. In other words, the forecast is not just down 1 decitonne per hectare on the previous month. It also falls short of the long-term average of 21.7 decitonnes per hectare. Biofuels News
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Malaysia halts new oil palm plantations to preserve forest cover — minister
SANDAKAN (Aug 18): Malaysia has pledged to halt new oil palm plantations in forest areas to support sustainability and maintain its current forest cover of 54%.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said that palm fruits harvested from deforested areas will be barred from entering palm oil mills.
"Factories accepting such fruits will be prohibited from exporting or selling their products. I believe we have enough oil palm plantations.
“We want to maintain our forest cover at 54% to enhance biodiversity protection, including safeguarding orangutans," he said during the World Orangutan Day 2024 event here on Sunday.
He emphasised that this policy has been communicated to industry players through various previous engagements.
Johari stressed the need for Malaysia to ensure that all palm oil exports meet sustainability standards to prove the country’s commitment.
He noted that Sabah alone has 1.5 million hectares of oil palm plantations. Despite this, the palm oil industry faces criticism and negative propaganda from some Western countries regarding its sustainability.
“The government is committed to addressing these false claims. We are making Malaysian Sustainable Palm Oil (MSPO) certification mandatory for all producers, including estates and smallholders,” Johari added.
With over 80% of Malaysia’s palm oil production destined for export, the MSPO certification is vital for assuring buyers of the products' sustainability and quality.
Johari highlighted that the palm oil sector significantly contributes to Malaysia’s economy, representing 3% of GDP, generating over RM100 billion in export revenue and providing around one million jobs. The Edge Malaysia
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Palm Oil Importing Countries To Be Invited To Join Orangutan Conservation In Sabah In-situ
Kuala Lumpur (AFP) – Malaysia is inviting countries that buy its palm oil to adopt orangutans but leave them in their natural habitat, local media reported, tweaking a plan that originally sought to send some abroad.
In a scheme modelled on China's "panda diplomacy", Malaysia announced in May that it would send the great apes as gifts to palm oil-purchasing countries, sparking an outcry among conservationists.
Orangutans are critically endangered, according to the International Union for Conservation of Nature (IUCN), and have lost habitat to logging and agricultural expansion -- particularly palm oil plantations.
On Sunday, Plantation and Commodities Minister Johari Abdul Ghani said any orangutans that were adopted would stay in Malaysia, the official Bernama news agency and other local media reported.
"All conservation activities will be carried out in forest areas or forest patches in oil palm plantations with high conservation value," he said, according to Bernama.
"These... areas provide space for orangutans to move freely, find food, and reproduce without interference from humans or other activities."
Buyers of Malaysian palm oil from around the world can "sponsor" one or more orangutans, and the funds collected will be used to implement conservation programmes for the animals, the minister said, according to The Star newspaper.
The programmes include "collaborating with a team of rangers, comprising experts, to monitor the presence, safety and condition of these wild animals", he said. France24
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Strengthening India-Malaysia Relations: Focus on Maritime Security and Palm Oil Cooperation
These talks are expected to cover a range of topics, including economic cooperation, defense collaboration, and regional security.
Marking his first official trip since taking office, Malaysia’s Prime Minister, Anwar bin Ibrahim, is coming on a State visit to India from August 19-21, 2024. The visit comes at a critical time for India-Malaysia relations, with both nations aiming to deepen cooperation in key areas such as maritime security, edible oil trade, and economic collaboration.
Strategic Bilateral Discussions
According to an official statement issued by the Ministry of External Affairs (MEA) on Tuesday (August 20, 2024) Prime Minister Anwar Ibrahim will be welcomed with a ceremonial reception at Rashtrapati Bhavan, followed by a visit to Raj Ghat to pay homage to Mahatma Gandhi. The main focus of the visit will be the bilateral discussions with Prime Minister Narendra Modi, where the leaders will explore ways to enhance their Enhanced Strategic Partnership, established in 2015. These talks are expected to cover a range of topics, including economic cooperation, defense collaboration, and regional security. Financial Express
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Focus on green energy as Malaysian PM arrives in India
KUALA LAMPUR: Visiting Malaysian PM Anwar Ibrahim is expected to make an emphatic pitch for Indian investments to revive his country's economy and amplify its digital and green energy sectors given India's solid experience and skill. Anwar is scheduled to reach Delhi on Monday evening. This will be Malaysia's first prime-ministerial visit to India since 2018.
He will meet PM Narendra Modi on August 20.
Sources said the two sides are working towards a substantive agreement on the start-ups sector. Currently, Indian start-ups like RazorPay and Pine Labs have nearly 70 percent share of the digital payment market, B2B, in Malaysia. Local start-ups, on the other hand, are tapping into India's digital technology sector.
Talking to TOI in Kuala Lumpur, industry leaders and policymakers said two important takeaways for Malaysia on bilateral trade would be - getting India's expertise from its National Skill Development programme, and collaboration and support on Electric Vehicles (EVs) and Artificial Intelligence. Times of India
--------
Indonesia Seeks Bigger Biodiesel Blend to Reduce Fossil Fuel Use
(Bloomberg) -- Indonesia is seeking to blend more palm oil with diesel to cut its use of fossil fuels, with the ambitious target raising the risk of tightening supply of the tropical oil.
The nation wants to increase the mix of palm-based biofuels with diesel to 50%, according to the agriculture ministry. The current blend is 35% — known as B35 — and Indonesia plans to expand that to B40 next year, provided trials on trains, ships and mining and agricultural machines are completed by December.
The biggest palm oil producer plans to commission economic and technical studies, conduct road trials and prepare necessary infrastructure to further cut its dependence on fossil fuels, the ministry said in a statement on Sunday. Such a move will also help the Southeast Asian nation reduce its trade deficit and boost farmer income, it added.
Indonesia’s green fuel plan raises the risk of a palm oil shortage and could boost prices, hurting countries like India, which imports about 60% of its vegetable oil needs. Palm oil exports from Indonesia fell about 3% to 32.2 million tons in 2023. Domestic consumption totaled 23.2 million tons, while 10.7 million tons were used to produce biofuels. Production is seen stagnating this year due to aging trees and adverse weather conditions.
The agriculture ministry said it will seek to secure palm oil for biofuels without disrupting its use in food, local industry and exports. The government is working with private companies to develop “degraded” land for palm cultivation exclusively for the energy sector, it said, without elaborating further. BNN Bloomberg
--------
Extreme weather in Europe reduces sunflower yields despite expanded planting
Despite an expansion in area planted with sunflowers in the European Union - harvest expectations are fading.
The reason is lower yields due to adverse weather conditions.
The unfavourable weather conditions in Europe prompted the EU Commission to lower its harvest estimate for sunflower seed significantly.
In the forecast published at the end of July, the harvest is expected at 10.1 million tonnes, 649,000 tonnes lower than the previous month.
In other words, the harvest would exceed the 2023 level by only 316,000 tonnes or 3%.
Foreseeable lower production in Bulgaria and Hungary, in particular, motivated the Commission to make this adjustment.
At 1.8 million tonnes and 1.9 million tonnes respectively, the estimates are down 278,000 tonnes and 251,000 tonnes respectively on those published in June.
Romania, the largest sunflower seed producer in the EU, is currently expected to harvest 2.5 million tonnes, around 147,000 tonnes less.
The main factors for the declines are the persistent drought and heat waves that impair the development of the crops. Daytime highs exceeded 40 °C in some places. If the lack of rain continues, more downward adjustments can be expected.
For the 2024 harvest, sunflower seed yield is currently estimated at 20.9 decitonnes per hectare. In other words, the forecast is not just down 1 decitonne per hectare on the previous month. It also falls short of the long-term average of 21.7 decitonnes per hectare. Biofuels News
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August 18. 2024
Low contribution to India's GDP by agriculture and allied sectors one of the biggest challenges in pursuit of a ‘Viksit Atmanirbhar Bharat’
Nagpur: Union minister Nitin Gadkari said one of the biggest challenges in pursuit of a ‘Viksit Atmanirbhar Bharat’ is the low contribution to GDP by agriculture and allied sectors. Speaking at the national dairy conference organized by Maharashtra Animal and Fishery Sciences University (Mafsu) here on Saturday, Gadkari said, “India’s 65% of the population lives in villages and their contribution to the GDP is only 12-14%.
This disparity is a major challenge that needs to be addressed to achieve the goal of a developed and self-reliant India.”
Gadkari emphasized the need to increase agricultural production to reduce farmer suicides, particularly in the Vidarbha region of Maharashtra. Farmer suicides have been a persistent problem in this region. “To stop farmer suicides agriculture production has to be increased,” Gadkari said. More Times of India
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Palm Oil Cultivation Can Yield 20 Times More Profit Than Rubber, Says Tripura Forest Minister Animesh Debbarma
Agartala, August 17, 2024: Forest Minister Animesh Debbarma on Saturday inaugurated a palm oil plantation program at Tripura’s East Tak Saiya ADC Village under Tulasikhar Block in Khowai district. The event held on Saturday at 4 PM, was a joint initiative by the Khowai Tulashikhar Agriculture Department and Patanjali Association Food Limited covering 40 hectares of land.
The ceremony saw the presence of several dignitaries, including Chairman of TTAADC of Khowai Zone Bishu Debbarma, Director of Horticulture Dr. Phani Bhushan Jamatia, Director of Horticulture Sabendra Debbarma, Deputy Director of Agriculture Department Prashanta Debbarma, and Director of Patanjali Food Limited Ayan Sarkar.
Addressing the ceremony, Minister Animesh Debbarma highlighted the potential benefits of palm oil cultivation. “A few months back, Deputy Director of Agriculture Department Prashanta Debbarma proposed the idea of palm oil cultivation. I immediately approved it because palm oil cultivation is more profitable than rubber cultivation,” said Minister Debbarma. He emphasized that while rubber is a cash crop that has made villagers self-reliant, palm oil can yield up to 20 times more profit. North East India
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Forest Minister Animesh Debbarma Launches Palm Oil Plantation Drive in East Tak Saiya Village
Agartala, 17th August 2024: In a significant step towards boosting agriculture and economic growth in Tripura, Forest Minister Animesh Debbarma spearheaded a palm oil plantation ceremony at East Tak Saiya ADC Village under the Tulasikhar Block. The initiative, jointly organized by the Tulasikhar Agriculture Department and Patanjali Association Food Limited, aims to cultivate palm oil on 40 hectares of land in the region.
The event, held on Saturday at 4 PM, saw the presence of several dignitaries, including Bishu Debbarma, Chairman of the Khowai Zone TTAADC, Dr. Phani Bhushan Jamatia, Director of Horticulture, Sabendra Debbarma, and Deputy Director of Agriculture Department, Prashant Debbarma. Ayan Sarkar, Director of Patanjali Food Limited, also graced the occasion.
Addressing the gathering, Forest Minister Animesh Debbarma emphasized the potential of palm oil cultivation to revolutionize the state’s agricultural landscape. “A few months ago, Deputy Director Prashant Debbarma approached me with a proposal to introduce palm oil cultivation in the state. Recognizing its potential, I immediately approved it,” said the minister. He highlighted that palm oil cultivation can be significantly more lucrative than rubber farming, stating, “While rubber is a profitable cash crop, palm oil has the potential to yield 20 times more income for farmers.” Tripura Chronicle
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Farm loans above Rs 2 lakh will be waived off says Tummala Nageshwar Rao
Nalgonda : Agriculture and Cooperation Minister Tummala Nageshwar Rao announced that crop loan waiver for over Rs two lakh across the state will be credited to farmers’ accounts from today. Tumalla, along with Legislative Council Chairman Gutha Sukhender Reddy and State Roads and Buildings Minister Komatireddy Venkat Reddy, inaugurated an Agri Show organised by Rythu Badi at NG College on Saturday.
Speaking on the occasion, he lambasted Opposition’s criticism regarding the loan waiver scheme implemented by the Congress government. He emphasised that the state government is strictly implementing the loan waiver for farmers with loans below two lakh, as promised by Rahul Gandhi. Despite criticisms and allegations, the government under Chief Minister Revanth Reddy’s leadership is committed to waiving loans for eligible farmers across the State. If farm loans goe above Rs 2 lakh, the additional amount of waiver will be credited to their accounts starting Saturday, says the Minister
https://www.thehansindia.com/telangana/farm-loans-above-rs-2-lakh-will-be-waived-off-says-tummala-nageshwar-rao-900386
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Low contribution to India's GDP by agriculture and allied sectors one of the biggest challenges in pursuit of a ‘Viksit Atmanirbhar Bharat’
Nagpur: Union minister Nitin Gadkari said one of the biggest challenges in pursuit of a ‘Viksit Atmanirbhar Bharat’ is the low contribution to GDP by agriculture and allied sectors. Speaking at the national dairy conference organized by Maharashtra Animal and Fishery Sciences University (Mafsu) here on Saturday, Gadkari said, “India’s 65% of the population lives in villages and their contribution to the GDP is only 12-14%.
This disparity is a major challenge that needs to be addressed to achieve the goal of a developed and self-reliant India.”
Gadkari emphasized the need to increase agricultural production to reduce farmer suicides, particularly in the Vidarbha region of Maharashtra. Farmer suicides have been a persistent problem in this region. “To stop farmer suicides agriculture production has to be increased,” Gadkari said. More Times of India
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Palm Oil Cultivation Can Yield 20 Times More Profit Than Rubber, Says Tripura Forest Minister Animesh Debbarma
Agartala, August 17, 2024: Forest Minister Animesh Debbarma on Saturday inaugurated a palm oil plantation program at Tripura’s East Tak Saiya ADC Village under Tulasikhar Block in Khowai district. The event held on Saturday at 4 PM, was a joint initiative by the Khowai Tulashikhar Agriculture Department and Patanjali Association Food Limited covering 40 hectares of land.
The ceremony saw the presence of several dignitaries, including Chairman of TTAADC of Khowai Zone Bishu Debbarma, Director of Horticulture Dr. Phani Bhushan Jamatia, Director of Horticulture Sabendra Debbarma, Deputy Director of Agriculture Department Prashanta Debbarma, and Director of Patanjali Food Limited Ayan Sarkar.
Addressing the ceremony, Minister Animesh Debbarma highlighted the potential benefits of palm oil cultivation. “A few months back, Deputy Director of Agriculture Department Prashanta Debbarma proposed the idea of palm oil cultivation. I immediately approved it because palm oil cultivation is more profitable than rubber cultivation,” said Minister Debbarma. He emphasized that while rubber is a cash crop that has made villagers self-reliant, palm oil can yield up to 20 times more profit. North East India
--------
Forest Minister Animesh Debbarma Launches Palm Oil Plantation Drive in East Tak Saiya Village
Agartala, 17th August 2024: In a significant step towards boosting agriculture and economic growth in Tripura, Forest Minister Animesh Debbarma spearheaded a palm oil plantation ceremony at East Tak Saiya ADC Village under the Tulasikhar Block. The initiative, jointly organized by the Tulasikhar Agriculture Department and Patanjali Association Food Limited, aims to cultivate palm oil on 40 hectares of land in the region.
The event, held on Saturday at 4 PM, saw the presence of several dignitaries, including Bishu Debbarma, Chairman of the Khowai Zone TTAADC, Dr. Phani Bhushan Jamatia, Director of Horticulture, Sabendra Debbarma, and Deputy Director of Agriculture Department, Prashant Debbarma. Ayan Sarkar, Director of Patanjali Food Limited, also graced the occasion.
Addressing the gathering, Forest Minister Animesh Debbarma emphasized the potential of palm oil cultivation to revolutionize the state’s agricultural landscape. “A few months ago, Deputy Director Prashant Debbarma approached me with a proposal to introduce palm oil cultivation in the state. Recognizing its potential, I immediately approved it,” said the minister. He highlighted that palm oil cultivation can be significantly more lucrative than rubber farming, stating, “While rubber is a profitable cash crop, palm oil has the potential to yield 20 times more income for farmers.” Tripura Chronicle
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Farm loans above Rs 2 lakh will be waived off says Tummala Nageshwar Rao
Nalgonda : Agriculture and Cooperation Minister Tummala Nageshwar Rao announced that crop loan waiver for over Rs two lakh across the state will be credited to farmers’ accounts from today. Tumalla, along with Legislative Council Chairman Gutha Sukhender Reddy and State Roads and Buildings Minister Komatireddy Venkat Reddy, inaugurated an Agri Show organised by Rythu Badi at NG College on Saturday.
Speaking on the occasion, he lambasted Opposition’s criticism regarding the loan waiver scheme implemented by the Congress government. He emphasised that the state government is strictly implementing the loan waiver for farmers with loans below two lakh, as promised by Rahul Gandhi. Despite criticisms and allegations, the government under Chief Minister Revanth Reddy’s leadership is committed to waiving loans for eligible farmers across the State. If farm loans goe above Rs 2 lakh, the additional amount of waiver will be credited to their accounts starting Saturday, says the Minister
https://www.thehansindia.com/telangana/farm-loans-above-rs-2-lakh-will-be-waived-off-says-tummala-nageshwar-rao-900386
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Edo State Govt Opens 50,000 Hectares For Cash Crop, Oil Palm Investments
Solidaridad Organises Workshop For Farmers, SMEs
In a bid to improve the competitiveness and sustainability of the palm oil sector in Nigeria and make farmers standard ready with regards to the European Union Policy of Products, a non-governmental organisation, Solidaridad, under the Pathway to Prosperity project has organised capacity workshop for 30 small and medium enterprises (SMEs) from Akwa Ibom, Anambra, Cross River, Delta, Enugu and Kogi states.
The European Union has set a deadline for deforestation-free oil palm production by December 31, 2024 towards sustainable production systems.
The workshop entitled: “Understanding Palm Oil Traceability, Branding and Marketing in Nigeria,” will support the SMEs to develop strategies for kickstarting palm oil traceability for smallholder farmers in their states of operation, develop marketing plans aimed at expanding Nigerian palm oil’s reach in domestic and international markets.
It would also help them to understand effective branding that highlights the unique qualities of Nigerian palm oil and enhance the knowledge of participants on the importance and implementation of traceability systems in Nigeria’s palm oil supply chain. Leadership NG
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August 17, 2024
EU's carbon border tax will hurt developing country SMEs
Frances Li is a Europe analyst at the Economist Intelligence Unit.
The EU prides itself in its progressive values, including its commitment to sustainable development. However, its incoming deforestation regulation and carbon border adjustment mechanism (CBAM) disproportionately burden developing countries–and within them, smaller and medium sized companies (SMEs) in particular.
As part of the European Green Deal, CBAM — a tariff on carbon-intensive imports — will fully take effect in 2026. Ideally, the mechanism will help to drive corporate investment into decarbonisation in the EU’s trade partners.
But financial incentives to boost corporate investment, or for developing countries to mitigate and adapt to climate change, remain limited. Companies on the receiving end therefore face challenges in complying with the rules.
Indian steel
Indian steel producers are some of the most at risk companies to the CBAM. India is a significant exporter of steel to the EU and Indian steel production is largely reliant on coal — a carbon-intensive fuel source. Within India, large industrial conglomerates are much better placed to deal with the EU’s green regulations. Tata Steel, a subsidiary of the Tata Group and one of the biggest players in the steel sector, already has production facilities in Europe and has described the CBAM as “an opportunity”.
That large industrial companies are taking steps to green their heavy carbon emitting activities in order to remain competitive is a positive development — but the opportunity to do so is not equally accessible to all. Tata Steel (whose total revenue amounted to $28bn [€25.5bn] in the 2023 fiscal year) has the resources to invest in and comply with CBAM regulations, while smaller and medium sized companies (SMEs) — particularly in developing countries — will have a much harder time and are unlikely to view CBAM in opportunistic terms. More EU Observer
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Trust deficit on climate change one of the issues to be tackled
By Ong Tee Keat | China Daily Global
Climate change is one of the key existential threats confronting humanity. Over the past three decades, the globalized world has been fighting an exponential emergency with incremental progress.
Yet, there are still some influential politicians and opinion leaders on the world stage willfully denying the impact of climate change, thereby condemning humanity to a very dangerous future.
Year after year, conference after conference, the international community has been repeating the same old appeal to developed economies to honor their commitments to helping the Global South address the pressing concerns of climate change. Yet, the outcome is simply dismaying.
The delivery of an annual climate finance commitment of $100 billion remains unfulfilled. Breaching of the promise made by the Global North at the COP27 in Egypt has further widened the trust deficit between the Global North and South.
Beyond the fanfare and rhetoric for global optics, the outcomes of the Conference of the Parties to the UNFCCC have been nothing more than reaffirming the 2015 Paris Agreement goal of limiting the increase in the global average temperature to well below 2 C above preindustrial levels and pursuing efforts to limit it to 1.5 C.
Lack of political will and prevalence of silo mentality have thrown the global aspiration of good climate governance into disarray.
Worse still, climate action has increasingly been weaponized in the escalating big powers' geopolitical rivalry.
Amid the evolving global order, though the G7, representing the rich Global North has reached out to the Global South since the Japanese presidency last year (2023), substantive initiatives of multilateral cooperation in addressing the North-South economic divide are yet to be seen.
Unsustainability of our global development will linger on as long as inequitable distribution of global resources prevails. Disproportionate consumption of earthy resources and skewed wealth distribution to the disadvantage of Global South, if left unabated, would only serve to exacerbate the economic divide between the Global North and South.
The developed economies have long been the major resource consumers as well as the major polluters in the world, despite technological advancement. This is the elephant in the room. While wielding the power of rules-based global governance, the Western diktats of "sustainable development" have been used to target industrial development in emerging economies indiscriminately. To this end, coercive economic restrictions are the common tools deployed to the detriment of the vulnerable Global South. More China Daily
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Study finds green labels fall short on EU deforestation law
A study has claimed that all five of the main green labels used to denote that products meet sustainability and deforestation standards do not wholly satisfy the recently adopted EU Deforestation Regulation (EUDR).
The voluntary sustainability standard (VSS) labels – Fairtrade International for coffee and cocoa, Forest Stewardship Council (FSC) for wood and natural rubber, Rainforest Alliance for coffee and cocoa, Roundtable on Sustainable Palm Oil (RSPO) for oil palm, and Round Table on Responsible Soy Association (RTRS) for soya – met some of the EUDR requirements, but none did so fully, according to the paper in the journal Forest Policy and Economics.
They also fell short on processes designed to ensure that organisations certified to use the labels adhered to the standards, with examples where they were able to retain certification despite violations.
The EUDR was enacted last year to help consumers identify products that fight deforestation and forest degradation associated with the trade of forest-risk commodities, including cattle, cocoa, coffee, oil palm, rubber, soya, and wood, and allow manufacturers to promote their green credentials. It comes into full effect at the end of this year.
"Although these schemes encompass a comprehensive framework for ensuring sustainable commodity production and trade, their effectiveness in fulfilling the specifications of the EUDR is limited," write the study authors, from the Department of Land, Environment, Agriculture and Forestry (TESAF) at the University of Padova in Italy. They point out however that the labels were created before the EUDR.
Traceability failings More Security Industry
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Indonesia Takes Initiative with National Dashboard
Indonesia is rapidly developing its tracking system for commodities, including palm;
The system is being developed unilaterally, ahead of promises of support from the EU;
Officials see the dashboard as a way to maintain export incomes for farmer communities.
Indonesia is fast-tracking the development of its National Dashboard for Sustainable Commodity Data and Information. This initiative aims to bolster the country's position in international trade while addressing pressing environmental concerns.
The European Union Deforestation-free Regulation (EUDR), set to be implemented by the end of 2024, has become a significant catalyst for this project. The EUDR will impose traceability and due diligence obligations on a number of agricultural and forestry commodities. For Indonesia, five commodities - palm oil, cocoa, coffee, rubber, and wood - are directly impacted.
Although the EU has promised to provide detailed technical support for the EUDR, Indonesia is pushing the Dashboard independently.
Musdhalifah Machmud, Expert Staff for Connectivity, Service Development, and Natural Resources at the Coordinating Ministry for the Economy, emphasized the importance of this initiative during a recent workshop in Bali.
Indonesia isn't facing these challenges alone. Indonesia has been working closely with Malaysia in a Joint Mission to the European Union, facilitated by the Council of Palm Oil Producing Countries (CPOPC). This collaboration led to the formation of an Ad Hoc Joint Task Force (JTF) comprising representatives from Indonesia, Malaysia, and the European Union.
The Coordinating Ministry for Economic Affairs has issued two crucial decrees to accelerate the development of the National Dashboard system. These decrees establish the Steering Committee, Expert Team, and Technical Committee for the project.
Musdhalifah, who chairs the Steering Committee, underscored the dashboard's significance: "The existence of a national dashboard will be very important for Indonesia to maintain the sustainability of our country's economy. We must not experience a decline in per capita income, especially if we want to join the OECD."
The National Dashboard is targeted for completion ahead of the 3rd Joint Task Force meeting scheduled for September 2024 in Brussels or Rotterdam. This meeting will coincide with the Sustainable Vegetable Oil Conference initiated by CPOPC.
A recent three-day workshop (June 3-5, 2024) brought together the Steering Team and Technical Committee to discuss strategies for accelerating the dashboard system across various fields. The outcomes will be compiled into a National Dashboard Progress Report, complete with acceleration modules for each technical area.
The development of the National Dashboard involves a wide range of stakeholders, including various government ministries, commodity associations, and civil society organizations. The Steering Committee's responsibilities include determining general policies, coordinating data collection efforts, supervising and evaluating policies, and overseeing the Expert Team and Technical Committee.
PT Surveyor Indonesia has been appointed as the key agency to develop the dashboard. President Director of PT Surveyor Indonesia Sandry Pasambunahas said that new policies such as the EUDR are likely to be introduced or changed as time goes on.
“Now for that, the National Dashboard is needed to maintain foreign exchange from food commodity exports and agribusiness so that this will make it easier to export overseas." Indonesia Palm Oil Facts
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Nestle, PepsiCo in talks with Godrej Agrovet to buy palm oil
Synopsis
Nestle and PepsiCo discussed with Godrej Agrovet about sourcing refined palm oil locally for brands like Maggi and Lay’s. This shift comes due to rising global prices and logistics costs. Companies aim to shorten import cycles and avoid supply disruptions amidst geopolitical tensions. Currently, they import mainly from Indonesia and Malaysia but are now urged to increase local procurement. Trade analysts suggest that sourcing from India can help negotiate better prices, ensure quality, and reduce logistics expenses.
Kolkata | New Delhi: Packaged foods makers Nestle and PepsiCo are in talks with Godrej Agrovet, one of the country's largest producers of palm oil, to buy refined palm oil locally for some of their biggest brands such as Maggi instant noodles and Lay's potato chips, executives directly aware of the developments said.
Read more at:
https://economictimes.indiatimes.com/industry/cons-products/fmcg/nestle-pepsico-in-talks-with-godrej-agrovet-to-buy-palm-oil/articleshow/112575249.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
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EU's carbon border tax will hurt developing country SMEs
Frances Li is a Europe analyst at the Economist Intelligence Unit.
The EU prides itself in its progressive values, including its commitment to sustainable development. However, its incoming deforestation regulation and carbon border adjustment mechanism (CBAM) disproportionately burden developing countries–and within them, smaller and medium sized companies (SMEs) in particular.
As part of the European Green Deal, CBAM — a tariff on carbon-intensive imports — will fully take effect in 2026. Ideally, the mechanism will help to drive corporate investment into decarbonisation in the EU’s trade partners.
But financial incentives to boost corporate investment, or for developing countries to mitigate and adapt to climate change, remain limited. Companies on the receiving end therefore face challenges in complying with the rules.
Indian steel
Indian steel producers are some of the most at risk companies to the CBAM. India is a significant exporter of steel to the EU and Indian steel production is largely reliant on coal — a carbon-intensive fuel source. Within India, large industrial conglomerates are much better placed to deal with the EU’s green regulations. Tata Steel, a subsidiary of the Tata Group and one of the biggest players in the steel sector, already has production facilities in Europe and has described the CBAM as “an opportunity”.
That large industrial companies are taking steps to green their heavy carbon emitting activities in order to remain competitive is a positive development — but the opportunity to do so is not equally accessible to all. Tata Steel (whose total revenue amounted to $28bn [€25.5bn] in the 2023 fiscal year) has the resources to invest in and comply with CBAM regulations, while smaller and medium sized companies (SMEs) — particularly in developing countries — will have a much harder time and are unlikely to view CBAM in opportunistic terms. More EU Observer
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Trust deficit on climate change one of the issues to be tackled
By Ong Tee Keat | China Daily Global
Climate change is one of the key existential threats confronting humanity. Over the past three decades, the globalized world has been fighting an exponential emergency with incremental progress.
Yet, there are still some influential politicians and opinion leaders on the world stage willfully denying the impact of climate change, thereby condemning humanity to a very dangerous future.
Year after year, conference after conference, the international community has been repeating the same old appeal to developed economies to honor their commitments to helping the Global South address the pressing concerns of climate change. Yet, the outcome is simply dismaying.
The delivery of an annual climate finance commitment of $100 billion remains unfulfilled. Breaching of the promise made by the Global North at the COP27 in Egypt has further widened the trust deficit between the Global North and South.
Beyond the fanfare and rhetoric for global optics, the outcomes of the Conference of the Parties to the UNFCCC have been nothing more than reaffirming the 2015 Paris Agreement goal of limiting the increase in the global average temperature to well below 2 C above preindustrial levels and pursuing efforts to limit it to 1.5 C.
Lack of political will and prevalence of silo mentality have thrown the global aspiration of good climate governance into disarray.
Worse still, climate action has increasingly been weaponized in the escalating big powers' geopolitical rivalry.
Amid the evolving global order, though the G7, representing the rich Global North has reached out to the Global South since the Japanese presidency last year (2023), substantive initiatives of multilateral cooperation in addressing the North-South economic divide are yet to be seen.
Unsustainability of our global development will linger on as long as inequitable distribution of global resources prevails. Disproportionate consumption of earthy resources and skewed wealth distribution to the disadvantage of Global South, if left unabated, would only serve to exacerbate the economic divide between the Global North and South.
The developed economies have long been the major resource consumers as well as the major polluters in the world, despite technological advancement. This is the elephant in the room. While wielding the power of rules-based global governance, the Western diktats of "sustainable development" have been used to target industrial development in emerging economies indiscriminately. To this end, coercive economic restrictions are the common tools deployed to the detriment of the vulnerable Global South. More China Daily
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Study finds green labels fall short on EU deforestation law
A study has claimed that all five of the main green labels used to denote that products meet sustainability and deforestation standards do not wholly satisfy the recently adopted EU Deforestation Regulation (EUDR).
The voluntary sustainability standard (VSS) labels – Fairtrade International for coffee and cocoa, Forest Stewardship Council (FSC) for wood and natural rubber, Rainforest Alliance for coffee and cocoa, Roundtable on Sustainable Palm Oil (RSPO) for oil palm, and Round Table on Responsible Soy Association (RTRS) for soya – met some of the EUDR requirements, but none did so fully, according to the paper in the journal Forest Policy and Economics.
They also fell short on processes designed to ensure that organisations certified to use the labels adhered to the standards, with examples where they were able to retain certification despite violations.
The EUDR was enacted last year to help consumers identify products that fight deforestation and forest degradation associated with the trade of forest-risk commodities, including cattle, cocoa, coffee, oil palm, rubber, soya, and wood, and allow manufacturers to promote their green credentials. It comes into full effect at the end of this year.
"Although these schemes encompass a comprehensive framework for ensuring sustainable commodity production and trade, their effectiveness in fulfilling the specifications of the EUDR is limited," write the study authors, from the Department of Land, Environment, Agriculture and Forestry (TESAF) at the University of Padova in Italy. They point out however that the labels were created before the EUDR.
Traceability failings More Security Industry
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Indonesia Takes Initiative with National Dashboard
Indonesia is rapidly developing its tracking system for commodities, including palm;
The system is being developed unilaterally, ahead of promises of support from the EU;
Officials see the dashboard as a way to maintain export incomes for farmer communities.
Indonesia is fast-tracking the development of its National Dashboard for Sustainable Commodity Data and Information. This initiative aims to bolster the country's position in international trade while addressing pressing environmental concerns.
The European Union Deforestation-free Regulation (EUDR), set to be implemented by the end of 2024, has become a significant catalyst for this project. The EUDR will impose traceability and due diligence obligations on a number of agricultural and forestry commodities. For Indonesia, five commodities - palm oil, cocoa, coffee, rubber, and wood - are directly impacted.
Although the EU has promised to provide detailed technical support for the EUDR, Indonesia is pushing the Dashboard independently.
Musdhalifah Machmud, Expert Staff for Connectivity, Service Development, and Natural Resources at the Coordinating Ministry for the Economy, emphasized the importance of this initiative during a recent workshop in Bali.
Indonesia isn't facing these challenges alone. Indonesia has been working closely with Malaysia in a Joint Mission to the European Union, facilitated by the Council of Palm Oil Producing Countries (CPOPC). This collaboration led to the formation of an Ad Hoc Joint Task Force (JTF) comprising representatives from Indonesia, Malaysia, and the European Union.
The Coordinating Ministry for Economic Affairs has issued two crucial decrees to accelerate the development of the National Dashboard system. These decrees establish the Steering Committee, Expert Team, and Technical Committee for the project.
Musdhalifah, who chairs the Steering Committee, underscored the dashboard's significance: "The existence of a national dashboard will be very important for Indonesia to maintain the sustainability of our country's economy. We must not experience a decline in per capita income, especially if we want to join the OECD."
The National Dashboard is targeted for completion ahead of the 3rd Joint Task Force meeting scheduled for September 2024 in Brussels or Rotterdam. This meeting will coincide with the Sustainable Vegetable Oil Conference initiated by CPOPC.
A recent three-day workshop (June 3-5, 2024) brought together the Steering Team and Technical Committee to discuss strategies for accelerating the dashboard system across various fields. The outcomes will be compiled into a National Dashboard Progress Report, complete with acceleration modules for each technical area.
The development of the National Dashboard involves a wide range of stakeholders, including various government ministries, commodity associations, and civil society organizations. The Steering Committee's responsibilities include determining general policies, coordinating data collection efforts, supervising and evaluating policies, and overseeing the Expert Team and Technical Committee.
PT Surveyor Indonesia has been appointed as the key agency to develop the dashboard. President Director of PT Surveyor Indonesia Sandry Pasambunahas said that new policies such as the EUDR are likely to be introduced or changed as time goes on.
“Now for that, the National Dashboard is needed to maintain foreign exchange from food commodity exports and agribusiness so that this will make it easier to export overseas." Indonesia Palm Oil Facts
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Nestle, PepsiCo in talks with Godrej Agrovet to buy palm oil
Synopsis
Nestle and PepsiCo discussed with Godrej Agrovet about sourcing refined palm oil locally for brands like Maggi and Lay’s. This shift comes due to rising global prices and logistics costs. Companies aim to shorten import cycles and avoid supply disruptions amidst geopolitical tensions. Currently, they import mainly from Indonesia and Malaysia but are now urged to increase local procurement. Trade analysts suggest that sourcing from India can help negotiate better prices, ensure quality, and reduce logistics expenses.
Kolkata | New Delhi: Packaged foods makers Nestle and PepsiCo are in talks with Godrej Agrovet, one of the country's largest producers of palm oil, to buy refined palm oil locally for some of their biggest brands such as Maggi instant noodles and Lay's potato chips, executives directly aware of the developments said.
Read more at:
https://economictimes.indiatimes.com/industry/cons-products/fmcg/nestle-pepsico-in-talks-with-godrej-agrovet-to-buy-palm-oil/articleshow/112575249.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
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August 16, 2024
Retailers push for UK deforestation law
Major UK supermarkets have called on the new government to move swiftly to introduce legislation ensuring key food commodities are not linked to illegal deforestation.
Using powers under the Environment Act 2021, the previous Conservative government was in the process of legislating to make it mandatory for large companies to carry out due diligence checks to ensure there is no illegal deforestation in their supply chains for forest-risk commodities such as soy, beef and palm oil. But the legislation was subject to numerous delays and never made it onto the statute book before the general election, while there was no mention of it in Labour’s recent King’s Speech in which the government set out its legislative agenda for the current session of Parliament.
The Retail Soy Group (RSG), whose members include ten of the biggest UK grocery retailers including Tesco and Sainsbury’s along with the British Retail Consortium (BRC), have written an open letter to new Defra secretary of state Steve Reed calling on him to introduce and adopt the forest risk commodities legislation within his first hundred days in office.
The RSG was formed as an offshoot of the BRC in 2013 to address a sector-wide gap in meeting demand for sustainably produced soy.
Last year, the European Union introduced the EU Deforestation Regulation (EUDR), which places a legal responsibility on businesses to exercise deforestation due diligence on their supply chains by December 30th 2024.
The RSG said retailers have been supportive of the EU legislation and said it was critical that the UK Government delivers on its own deforestation legislation to ensure that British farmers and the wider food sector can continue to access the European market after the EUDR enters into force.
The group added that its continued delay and absence “is contributing to further market confusion and is hindering retailer efforts to deliver on our shared commitment to eliminate deforestation and land conversion”. It warned that “further inaction puts the UK at risk of becoming a dumping ground for deforestation-connected commodities”. Food Print
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Palm oil cultivation is key for Atmanirbhar Bharat. It empowers farmers too
India has more than 3 lakh hectares of land under oil palm cultivation, and can support an additional 28 lakh hectares. This can significantly reduce its palm oil import burden.
India is counted as a major agri-exporting country and has made significant progress in achieving self-sufficiency in the production of rice, wheat, and sugar. However, its dependence on edible oil imports remains high. These imports were worth Rs 1.57 lakh crore in October 2022, underscoring the need for domestic cultivation of palm oil to achieve the vision of an ‘Atmanirbhar Bharat’. The move toward self-reliance also holds a massive potential for empowering Indian farmers.
India is the largest importer of palm oil globally, with consumption going up by 24 per cent in 2022-23. Indians consume 240 lakh tonnes of edible oil annually, with 130-150 lakh tonnes being imported, and palm oil accounting for 56-59 per cent of this import.
Malaysian Minister of Plantation and Commodities Johari Abdul Ghani’s recent visit here is significant as India has reportedly been the largest buyer of Malaysian palm oil for over 14 years. As India progresses toward its goal of achieving self-reliance in edible oils and becoming a global powerhouse, a collaboration between the two countries can be mutually beneficial. Palm oil, after all, is Malaysia’s largest agribusiness sector. More The PrintID
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Scientists Reveal Europe’s Old-Growth Forests as Key Carbon Sinks in Climate Fight
Hungarian ecologists, part of the Hungarian Research Network (HUN-REN), contributed to a study revealing that European old-growth forests can sequester significantly more carbon dioxide than previously estimated.
If these forests were allowed to grow back in the wild, they could absorb up to 309 megatons of CO2 annually, potentially offsetting a substantial portion of Europe’s vehicular emissions.
The study, published in Communications Earth & Environment, involved surveying over 288,000 trees across nearly 8,000 sites in 27 countries. It found that Europe’s old-growth forests, especially those with trees older than 100 years, have a much higher carbon sequestration capacity than previously recognized.
The research highlights that if these forests were allowed to mature without human interference, they could play a crucial role in combating climate change by sequestering significant amounts of CO2. More Hungary Today
Retailers push for UK deforestation law
Major UK supermarkets have called on the new government to move swiftly to introduce legislation ensuring key food commodities are not linked to illegal deforestation.
Using powers under the Environment Act 2021, the previous Conservative government was in the process of legislating to make it mandatory for large companies to carry out due diligence checks to ensure there is no illegal deforestation in their supply chains for forest-risk commodities such as soy, beef and palm oil. But the legislation was subject to numerous delays and never made it onto the statute book before the general election, while there was no mention of it in Labour’s recent King’s Speech in which the government set out its legislative agenda for the current session of Parliament.
The Retail Soy Group (RSG), whose members include ten of the biggest UK grocery retailers including Tesco and Sainsbury’s along with the British Retail Consortium (BRC), have written an open letter to new Defra secretary of state Steve Reed calling on him to introduce and adopt the forest risk commodities legislation within his first hundred days in office.
The RSG was formed as an offshoot of the BRC in 2013 to address a sector-wide gap in meeting demand for sustainably produced soy.
Last year, the European Union introduced the EU Deforestation Regulation (EUDR), which places a legal responsibility on businesses to exercise deforestation due diligence on their supply chains by December 30th 2024.
The RSG said retailers have been supportive of the EU legislation and said it was critical that the UK Government delivers on its own deforestation legislation to ensure that British farmers and the wider food sector can continue to access the European market after the EUDR enters into force.
The group added that its continued delay and absence “is contributing to further market confusion and is hindering retailer efforts to deliver on our shared commitment to eliminate deforestation and land conversion”. It warned that “further inaction puts the UK at risk of becoming a dumping ground for deforestation-connected commodities”. Food Print
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Palm oil cultivation is key for Atmanirbhar Bharat. It empowers farmers too
India has more than 3 lakh hectares of land under oil palm cultivation, and can support an additional 28 lakh hectares. This can significantly reduce its palm oil import burden.
India is counted as a major agri-exporting country and has made significant progress in achieving self-sufficiency in the production of rice, wheat, and sugar. However, its dependence on edible oil imports remains high. These imports were worth Rs 1.57 lakh crore in October 2022, underscoring the need for domestic cultivation of palm oil to achieve the vision of an ‘Atmanirbhar Bharat’. The move toward self-reliance also holds a massive potential for empowering Indian farmers.
India is the largest importer of palm oil globally, with consumption going up by 24 per cent in 2022-23. Indians consume 240 lakh tonnes of edible oil annually, with 130-150 lakh tonnes being imported, and palm oil accounting for 56-59 per cent of this import.
Malaysian Minister of Plantation and Commodities Johari Abdul Ghani’s recent visit here is significant as India has reportedly been the largest buyer of Malaysian palm oil for over 14 years. As India progresses toward its goal of achieving self-reliance in edible oils and becoming a global powerhouse, a collaboration between the two countries can be mutually beneficial. Palm oil, after all, is Malaysia’s largest agribusiness sector. More The PrintID
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Scientists Reveal Europe’s Old-Growth Forests as Key Carbon Sinks in Climate Fight
Hungarian ecologists, part of the Hungarian Research Network (HUN-REN), contributed to a study revealing that European old-growth forests can sequester significantly more carbon dioxide than previously estimated.
If these forests were allowed to grow back in the wild, they could absorb up to 309 megatons of CO2 annually, potentially offsetting a substantial portion of Europe’s vehicular emissions.
The study, published in Communications Earth & Environment, involved surveying over 288,000 trees across nearly 8,000 sites in 27 countries. It found that Europe’s old-growth forests, especially those with trees older than 100 years, have a much higher carbon sequestration capacity than previously recognized.
The research highlights that if these forests were allowed to mature without human interference, they could play a crucial role in combating climate change by sequestering significant amounts of CO2. More Hungary Today
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August 15, 2024
Navigating Uncertainty in Biomass Supplies
Europe is the world’s largest wood pellet market, producing just slightly more than it consumes. According to Bioenergy Europe’s Statistical Report 2024, released in June, the EU alone produced 20.7 million metric tons in 2023 and consumed 21.9 million MT. That equates to producing 44% and consuming 50% of the world’s pellets.
But while production and consumption has steadily climbed in the EU and United Kingdom without interruption for nearly the past decade, last year saw a deviation from that trend. Wood pellet consumption actually declined by a collective 2 million tons from 2022 to 2023, from 32.1 million MT to 30.1 million MT, the culmination of a number of market forces.
Industry Disruptions
In the years leading up to 2023, the EU saw record production and consumption, as well as record pellet-based appliance sales, according to Bioenergy Europe’s report. While the residential market has managed to remain a bright spot—the share of residential and commercial consumption of pellets reached 59% in 2023, the highest in a decade—the recent decline was largely due to disruptions in the industrial market. This includes Russia’s invasion of the Ukraine and “resulting energy crisis in 2022,” causing “dramatic price fluctuations in many countries.”
Bioenergy Europe highlights the challenges the European pellet industry has faced as being threefold: higher input prices, falling industrial demand and a record warm winter. The high cost of electricity for pellet manufacturers also contributed to inflated prices, which, when combined with volatile energy market conditions, has led to a ripple effect on power generators, prompting significant scale-backs. While pellet prices have fallen, they’re still “noticeably above their historical average,” the report says. “As such, it seems that the recovering economic landscape is largely responsible for the decisions by industrial users to reduce consumption.”
Regarding heating degree days (HDD)—based on the assumption that when the outside temperature is 65 degrees Fahrenheit, heating and cooling aren’t needed—like United States, Europe saw significantly fewer this season. For example, in Spain, according to Bioenergy Europe, HDD decreased by 10%. Austria saw a decrease of nearly 22%, and Belgium saw 15% fewer HDD.
As for EU production, it has dropped but is projected to partially recover. However, production in the EU doesn’t mirror demand, and the EU’s Deforestation-Free Supply Chain Regulation—set to go into effect at the end of the year—could serve as a potential barrier to trade and imported wood pellets making up the difference. Its effects are not limited to imports, however, as it will also affect wood pellets and other commodities produced and sold within the EU.
Challenges of the EUDR
The European Commission on Energy, Climate and Environment states the main driver of the regulation is the expansion of agricultural land that is linked to the production of commodities including cattle, wood, cocoa, soy, palm oil, coffee, rubber and some of their derived products, which the commission describes as “commodities linked to deforestation and forest degradation.” Biomass Magazine
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Small farms the key to Malaysia’s palm oil sustainability — Siti Dina Razman Pahri
AUGUST 15 — Supporting Malaysia’s smallholder farmers with technology and policy can ensure a sustainable palm oil industry.
Despite intense pressure to meet regulations and competition from its neighbours, Malaysia maintains its position as the world’s second-largest palm oil producer.
Smallholder farmers form a critical backbone in Malaysia’s palm oil industry.
According to the Malaysian Palm Oil Board, in 2023, smallholder farmers dominated 26.4 per cent of the total area, a slight increase from 26.2 per cent in 2022.
There are more than 300,000 oil palm smallholder farmers in Malaysia. These farmers typically manage less than 40 hectares of plantation and have shown remarkable resilience towards sustainability challenges. Malay Mail
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Agrarian conflicts in Indonesia's palm oil industry could be resolved by plasma plantation regulations
InfoSAWIT, JAKARTA – Palm oil plantation business partnerships and the Facilitation of the Development of Surrounding Community Plantations (FPKMS) are once again in the spotlight in efforts for agrarian reform in the plantation sector. On Monday, August 12, 2024, a number of organizations, including the Palm Oil Farmers Union (SPKS), Sawit Watch, and IHCS, held a Plantation Business Partnership and FPKMS Legal Conference with a focus on creating justice for farmers and realizing sustainable palm oil plantations.
SPKS Chairman, Sabarudin emphasized that conflicts in palm oil plantation business partnerships and legal issues related to the implementation of FPKMS must be the government's top priority. "Finding solutions to business partnership conflicts and the implementation of FPKMS is an urgent matter to resolve various conflicts that arise in various regions," said Sabarudin in an official statement received by InfoSAWIT , Wednesday (14/8/2024). Infosawit
Navigating Uncertainty in Biomass Supplies
Europe is the world’s largest wood pellet market, producing just slightly more than it consumes. According to Bioenergy Europe’s Statistical Report 2024, released in June, the EU alone produced 20.7 million metric tons in 2023 and consumed 21.9 million MT. That equates to producing 44% and consuming 50% of the world’s pellets.
But while production and consumption has steadily climbed in the EU and United Kingdom without interruption for nearly the past decade, last year saw a deviation from that trend. Wood pellet consumption actually declined by a collective 2 million tons from 2022 to 2023, from 32.1 million MT to 30.1 million MT, the culmination of a number of market forces.
Industry Disruptions
In the years leading up to 2023, the EU saw record production and consumption, as well as record pellet-based appliance sales, according to Bioenergy Europe’s report. While the residential market has managed to remain a bright spot—the share of residential and commercial consumption of pellets reached 59% in 2023, the highest in a decade—the recent decline was largely due to disruptions in the industrial market. This includes Russia’s invasion of the Ukraine and “resulting energy crisis in 2022,” causing “dramatic price fluctuations in many countries.”
Bioenergy Europe highlights the challenges the European pellet industry has faced as being threefold: higher input prices, falling industrial demand and a record warm winter. The high cost of electricity for pellet manufacturers also contributed to inflated prices, which, when combined with volatile energy market conditions, has led to a ripple effect on power generators, prompting significant scale-backs. While pellet prices have fallen, they’re still “noticeably above their historical average,” the report says. “As such, it seems that the recovering economic landscape is largely responsible for the decisions by industrial users to reduce consumption.”
Regarding heating degree days (HDD)—based on the assumption that when the outside temperature is 65 degrees Fahrenheit, heating and cooling aren’t needed—like United States, Europe saw significantly fewer this season. For example, in Spain, according to Bioenergy Europe, HDD decreased by 10%. Austria saw a decrease of nearly 22%, and Belgium saw 15% fewer HDD.
As for EU production, it has dropped but is projected to partially recover. However, production in the EU doesn’t mirror demand, and the EU’s Deforestation-Free Supply Chain Regulation—set to go into effect at the end of the year—could serve as a potential barrier to trade and imported wood pellets making up the difference. Its effects are not limited to imports, however, as it will also affect wood pellets and other commodities produced and sold within the EU.
Challenges of the EUDR
The European Commission on Energy, Climate and Environment states the main driver of the regulation is the expansion of agricultural land that is linked to the production of commodities including cattle, wood, cocoa, soy, palm oil, coffee, rubber and some of their derived products, which the commission describes as “commodities linked to deforestation and forest degradation.” Biomass Magazine
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Small farms the key to Malaysia’s palm oil sustainability — Siti Dina Razman Pahri
AUGUST 15 — Supporting Malaysia’s smallholder farmers with technology and policy can ensure a sustainable palm oil industry.
Despite intense pressure to meet regulations and competition from its neighbours, Malaysia maintains its position as the world’s second-largest palm oil producer.
Smallholder farmers form a critical backbone in Malaysia’s palm oil industry.
According to the Malaysian Palm Oil Board, in 2023, smallholder farmers dominated 26.4 per cent of the total area, a slight increase from 26.2 per cent in 2022.
There are more than 300,000 oil palm smallholder farmers in Malaysia. These farmers typically manage less than 40 hectares of plantation and have shown remarkable resilience towards sustainability challenges. Malay Mail
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Agrarian conflicts in Indonesia's palm oil industry could be resolved by plasma plantation regulations
InfoSAWIT, JAKARTA – Palm oil plantation business partnerships and the Facilitation of the Development of Surrounding Community Plantations (FPKMS) are once again in the spotlight in efforts for agrarian reform in the plantation sector. On Monday, August 12, 2024, a number of organizations, including the Palm Oil Farmers Union (SPKS), Sawit Watch, and IHCS, held a Plantation Business Partnership and FPKMS Legal Conference with a focus on creating justice for farmers and realizing sustainable palm oil plantations.
SPKS Chairman, Sabarudin emphasized that conflicts in palm oil plantation business partnerships and legal issues related to the implementation of FPKMS must be the government's top priority. "Finding solutions to business partnership conflicts and the implementation of FPKMS is an urgent matter to resolve various conflicts that arise in various regions," said Sabarudin in an official statement received by InfoSAWIT , Wednesday (14/8/2024). Infosawit
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August 14, 2024
ASEAN Can Benefit from US-China Tension: Economist
Jakarta. The rivalry between two major powers, the US and China, could deliver short-term benefits to ASEAN as Washington sought to substitute Chinese goods, according to a senior economist.
Lili Yan Ing, the former lead advisor of the Indonesian Minister of Trade and secretary-general of the International Economic Association (IEA), made the statement at the recent PRAXIS 2024 conference. According to a press statement, Ing told the conference Southeast Asia -- particularly Singapore, Malaysia, and Vietnam -- might benefit from the global geopolitical uncertainty and US-China tensions.
“Southeast Asia could see short-term gains driven by import diversification and FDI [foreign direct investment] relocation,” Ing said in a press release.
According to Ing, ASEAN exports to the US had risen from $185 billion in 2018 to $270 billion in 2023. The increase was mainly driven by machinery, electronics, and semiconductors which are substitutes for Chinese products. However, Ing warned that persistent US-China tensions could lead to long-term challenges such as increased production costs and inflation, ultimately reducing the overall welfare.
Ing responded to claims of ASEAN competing against another, particularly in the semiconductor industry. She also talked about how ASEAN could move forward with the agenda of forming a strategic regional integration.
“While ASEAN nations compete in sectors such as palm oil, oils, mining, agricultural products, automobiles, electronics, semiconductors, and many sectors, competition among ASEAN countries is good if all members can keep it fair and square,” Ing said.
In the semiconductor industry, ASEAN countries can collaborate in a conducive regional production network. Singapore specializes in water fabrication, contributing about 11 percent of the global wafer fabrication exports in 2023. Malaysia can focus on assembly, testing, and packaging (ATP), accounting for 5 percent of global APT in the same year, while Vietnam is an emerging player. More Jakarta Globe
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Fairtrade International calls for financial support for small-scale farmers over EU deforestation regulations
13 Aug 2024 --- Fairtrade International is calling for more financial support and clarification of the technical terms of the EU Deforestation Regulation (EUDR). The regulation mandates that companies demonstrate that their products are deforestation-free and not linked to forest degradation or illegal harvesting and trade.
The organization wants more clarity from the European Commission so that coffee and cocoa producers can meet the looming deadline of December 30, 2024 (June 30, 2025, for small and micro enterprises).
The main fear is that producer organizations will be cut off from trade with the EU market or pushed out of supply chains by larger producers. Fairtrade says this is not because they necessarily farm on deforested land but due to challenges in collecting, managing, and submitting the necessary data.
Administrative and cost burdens
Fairtrade International is asking the Commission to address the regulation’s “shortcomings.” It lists a series of recommendations to help the risk associated with how small-scale farmers will manage.
One key recommendation centers on helping them navigate the administrative burden and compliance costs, while another demands more information to clarify the law’s application. This includes asking for a better definition of key terms, explaining the rules on the traceability requirements and data governance across supply chains, and specifying the criteria used to verify compliance.
Fairtrade International also calls for the EC to offer market incentives and funding to help millions of small-scale farmers comply with EUDR requirements.
“The EC needs to immediately provide an assessment of the EUDR’s expected impact on the most vulnerable stakeholders in the global supply chain,” says a Fairtrade International statement. Food Ingredients First
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Smallholder Farmers Express Gratitude To The Asian Palm Oil Alliance For Advocacy
Smallholder farmers are extremely thankful to the Asian Palm Oil Alliance and its members for highlighting the critical socio-economic importance of palm oil for farmers in countries like Indonesia and Malaysia.
Smallholder farmers express heartfelt gratitude to the Asian Palm Oil Alliance (APOA) for voicing concerns regarding a recent decision to reduce palm oil content in soaps by 25%. This decision, reportedly influenced by increased palm oil prices and environmental considerations, has significant implications for the livelihoods of smallholder farmers and the broader palm oil industry.
Smallholder farmers are extremely thankful to the APOA and its members for highlighting the critical socio-economic importance of palm oil for farmers in countries like Indonesia and Malaysia. Palm oil cultivation is a vital source of income for many, helping to uplift communities and reduce poverty. The APOA's advocacy guarantees that smallholder farmers have their voices heard on the global stage.
Environmental and Economic Balance
The decision to reduce palm oil content by 25% underscores the complexity of balancing sustainability with economic realities. While smallholder farmers acknowledge the need for environmental stewardship, it is essential to consider the high yield and resource efficiency of palm oil compared to alternative oils. The APOA's call for transparent, scientifically supported comparisons between palm oil and its substitutes is a necessary step towards informed and balanced decision-making. Zee News
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India's July palm imports surge, near one-year high on festive demand
India's palm oil imports rose more than 37 per cent in July from previous month to about 1.1 million metric tonnes, highest since Aug 2023 and in line with traders' estimates, SEA of India said
India's palm oil imports reached a seasonal high of 1.081 million tonne in July, leading to port congestion and berthing delays of 8-10 days, industry body Solvent Extractors Association (SEA) said on Wednesday.
The imports were marginally lower than 1.086 million tonne in July 2023. Palm oil made up 57 per cent of the total vegetable oil imports.
Total vegetable oil imports stood at 18.95 lakh tonne in July, up from 1771 million tonne a year ago, SEA said in a statement.
The oil year runs from November to October. India is the world's largest importer and consumer of vegetable oils. Business Standard
ASEAN Can Benefit from US-China Tension: Economist
Jakarta. The rivalry between two major powers, the US and China, could deliver short-term benefits to ASEAN as Washington sought to substitute Chinese goods, according to a senior economist.
Lili Yan Ing, the former lead advisor of the Indonesian Minister of Trade and secretary-general of the International Economic Association (IEA), made the statement at the recent PRAXIS 2024 conference. According to a press statement, Ing told the conference Southeast Asia -- particularly Singapore, Malaysia, and Vietnam -- might benefit from the global geopolitical uncertainty and US-China tensions.
“Southeast Asia could see short-term gains driven by import diversification and FDI [foreign direct investment] relocation,” Ing said in a press release.
According to Ing, ASEAN exports to the US had risen from $185 billion in 2018 to $270 billion in 2023. The increase was mainly driven by machinery, electronics, and semiconductors which are substitutes for Chinese products. However, Ing warned that persistent US-China tensions could lead to long-term challenges such as increased production costs and inflation, ultimately reducing the overall welfare.
Ing responded to claims of ASEAN competing against another, particularly in the semiconductor industry. She also talked about how ASEAN could move forward with the agenda of forming a strategic regional integration.
“While ASEAN nations compete in sectors such as palm oil, oils, mining, agricultural products, automobiles, electronics, semiconductors, and many sectors, competition among ASEAN countries is good if all members can keep it fair and square,” Ing said.
In the semiconductor industry, ASEAN countries can collaborate in a conducive regional production network. Singapore specializes in water fabrication, contributing about 11 percent of the global wafer fabrication exports in 2023. Malaysia can focus on assembly, testing, and packaging (ATP), accounting for 5 percent of global APT in the same year, while Vietnam is an emerging player. More Jakarta Globe
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Fairtrade International calls for financial support for small-scale farmers over EU deforestation regulations
13 Aug 2024 --- Fairtrade International is calling for more financial support and clarification of the technical terms of the EU Deforestation Regulation (EUDR). The regulation mandates that companies demonstrate that their products are deforestation-free and not linked to forest degradation or illegal harvesting and trade.
The organization wants more clarity from the European Commission so that coffee and cocoa producers can meet the looming deadline of December 30, 2024 (June 30, 2025, for small and micro enterprises).
The main fear is that producer organizations will be cut off from trade with the EU market or pushed out of supply chains by larger producers. Fairtrade says this is not because they necessarily farm on deforested land but due to challenges in collecting, managing, and submitting the necessary data.
Administrative and cost burdens
Fairtrade International is asking the Commission to address the regulation’s “shortcomings.” It lists a series of recommendations to help the risk associated with how small-scale farmers will manage.
One key recommendation centers on helping them navigate the administrative burden and compliance costs, while another demands more information to clarify the law’s application. This includes asking for a better definition of key terms, explaining the rules on the traceability requirements and data governance across supply chains, and specifying the criteria used to verify compliance.
Fairtrade International also calls for the EC to offer market incentives and funding to help millions of small-scale farmers comply with EUDR requirements.
“The EC needs to immediately provide an assessment of the EUDR’s expected impact on the most vulnerable stakeholders in the global supply chain,” says a Fairtrade International statement. Food Ingredients First
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Smallholder Farmers Express Gratitude To The Asian Palm Oil Alliance For Advocacy
Smallholder farmers are extremely thankful to the Asian Palm Oil Alliance and its members for highlighting the critical socio-economic importance of palm oil for farmers in countries like Indonesia and Malaysia.
Smallholder farmers express heartfelt gratitude to the Asian Palm Oil Alliance (APOA) for voicing concerns regarding a recent decision to reduce palm oil content in soaps by 25%. This decision, reportedly influenced by increased palm oil prices and environmental considerations, has significant implications for the livelihoods of smallholder farmers and the broader palm oil industry.
Smallholder farmers are extremely thankful to the APOA and its members for highlighting the critical socio-economic importance of palm oil for farmers in countries like Indonesia and Malaysia. Palm oil cultivation is a vital source of income for many, helping to uplift communities and reduce poverty. The APOA's advocacy guarantees that smallholder farmers have their voices heard on the global stage.
Environmental and Economic Balance
The decision to reduce palm oil content by 25% underscores the complexity of balancing sustainability with economic realities. While smallholder farmers acknowledge the need for environmental stewardship, it is essential to consider the high yield and resource efficiency of palm oil compared to alternative oils. The APOA's call for transparent, scientifically supported comparisons between palm oil and its substitutes is a necessary step towards informed and balanced decision-making. Zee News
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India's July palm imports surge, near one-year high on festive demand
India's palm oil imports rose more than 37 per cent in July from previous month to about 1.1 million metric tonnes, highest since Aug 2023 and in line with traders' estimates, SEA of India said
India's palm oil imports reached a seasonal high of 1.081 million tonne in July, leading to port congestion and berthing delays of 8-10 days, industry body Solvent Extractors Association (SEA) said on Wednesday.
The imports were marginally lower than 1.086 million tonne in July 2023. Palm oil made up 57 per cent of the total vegetable oil imports.
Total vegetable oil imports stood at 18.95 lakh tonne in July, up from 1771 million tonne a year ago, SEA said in a statement.
The oil year runs from November to October. India is the world's largest importer and consumer of vegetable oils. Business Standard
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August 12, 2024
ISPO leads global palm oil certification as EUDR compliance challenges remain
12 Aug 2024 --- Indonesia Sustainable Palm Oil (ISPO), Indonesia’s national policy aiming to enhance the sustainability of the palm oil industry and the acceptance of the country’s produce in international markets, is now the largest certification program for the agricultural commodity.
The scheme covers 5.68 million hectares, making palm oil the most certified agricultural crop worldwide. The two major palm oil players in the region, Indonesia and Malaysia, have jointly certified over 11 million hectares of palm oil plantations so far.
For comparison, Roundtable on Sustainable Palm Oil, a global certification system for sustainable palm oil, has so far certified 4.9 million hectares, which includes many plantations from the two countries having two certifications.
The ISPO-certified area covers more than a third of the country’s palm oil plantations, around ten times the size of the Indonesian province of Bali. The total cover of ISPO and the Malaysian Sustainable Palm Oil scheme covers an area larger than South Korea.
Certified entities include over 1,000 plantation organizations, such as small-scale farmers, cooperatives and companies since the launch of the mandatory standard in 2011.
All the ISPO-certified farms produce around 40 million tons of palm oil annually, accounting for over 40% of the world’s palm oil production.
Indonesia has 2.6 million smallholders who can gain ISPO certification through the government’s financial mechanisms. The scheme aims to reach all levels of the country’s palm oil industry.
EUDR challenges
The F&B industry is bracing for the European Union Deforestation Regulation (EUDR), which aims to restrict the movement of key consumer commodities like , cocoa, coffee, palm oil, rubber, soya and wood to European markets if their origins contribute to deforestation.
ISPO says it currently does not meet the EUDR’s deforestation cut-off date requirements. However, it maintains that its certifications require independent auditors to verify each certified company's legal documentation requirements. Food Ingredients First
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State wide mega oil palm plantation drive 2024 held
Kohima, August 11 (MExN): A four-day state wide Mega Oil Palm Plantation Drive was carried out from August 7 to 10 under the aegis of Agriculture department in collaboration with the implementing partner- Patanjali Food Ltd.
The plantation drive was carried out across four subdivisions namely-Tizit, Naginimora, Tamlu and Longtho (Mangkolemba) for expansion of oil palm cultivation.
Y. Yonchang Phom, Additional Director of Agriculture graced the programme as the special guest with Z Hukhato Sema, Joint Director of Agriculture leading the Plantation Drive.
Ronchamo Kikon, SMS delivered keynote address.
The drive also included distribution of Oil palm machineries and saplings to the oil palm farmers. Altogether, 700 farmers from the four divisions participated in the plantation drive. Morung Express
ISPO leads global palm oil certification as EUDR compliance challenges remain
12 Aug 2024 --- Indonesia Sustainable Palm Oil (ISPO), Indonesia’s national policy aiming to enhance the sustainability of the palm oil industry and the acceptance of the country’s produce in international markets, is now the largest certification program for the agricultural commodity.
The scheme covers 5.68 million hectares, making palm oil the most certified agricultural crop worldwide. The two major palm oil players in the region, Indonesia and Malaysia, have jointly certified over 11 million hectares of palm oil plantations so far.
For comparison, Roundtable on Sustainable Palm Oil, a global certification system for sustainable palm oil, has so far certified 4.9 million hectares, which includes many plantations from the two countries having two certifications.
The ISPO-certified area covers more than a third of the country’s palm oil plantations, around ten times the size of the Indonesian province of Bali. The total cover of ISPO and the Malaysian Sustainable Palm Oil scheme covers an area larger than South Korea.
Certified entities include over 1,000 plantation organizations, such as small-scale farmers, cooperatives and companies since the launch of the mandatory standard in 2011.
All the ISPO-certified farms produce around 40 million tons of palm oil annually, accounting for over 40% of the world’s palm oil production.
Indonesia has 2.6 million smallholders who can gain ISPO certification through the government’s financial mechanisms. The scheme aims to reach all levels of the country’s palm oil industry.
EUDR challenges
The F&B industry is bracing for the European Union Deforestation Regulation (EUDR), which aims to restrict the movement of key consumer commodities like , cocoa, coffee, palm oil, rubber, soya and wood to European markets if their origins contribute to deforestation.
ISPO says it currently does not meet the EUDR’s deforestation cut-off date requirements. However, it maintains that its certifications require independent auditors to verify each certified company's legal documentation requirements. Food Ingredients First
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State wide mega oil palm plantation drive 2024 held
Kohima, August 11 (MExN): A four-day state wide Mega Oil Palm Plantation Drive was carried out from August 7 to 10 under the aegis of Agriculture department in collaboration with the implementing partner- Patanjali Food Ltd.
The plantation drive was carried out across four subdivisions namely-Tizit, Naginimora, Tamlu and Longtho (Mangkolemba) for expansion of oil palm cultivation.
Y. Yonchang Phom, Additional Director of Agriculture graced the programme as the special guest with Z Hukhato Sema, Joint Director of Agriculture leading the Plantation Drive.
Ronchamo Kikon, SMS delivered keynote address.
The drive also included distribution of Oil palm machineries and saplings to the oil palm farmers. Altogether, 700 farmers from the four divisions participated in the plantation drive. Morung Express
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August 11, 2024
Decision to restart Malaysia-EU FTA talks imminent, says EU Ambassador to Malaysia
KUALA LUMPUR: Outgoing European Union (EU) Ambassador to Malaysia Michalis Rokas has expressed confidence that the decision to restart negotiations on the stalled Malaysia-EU Free Trade Agreement (MEUFTA) is imminent.
"Having started the stock-taking exercise last year, the decision to restart talks on MEUFTA may take, at the maximum, a couple of months," said Rokas, who will take up his new posting in North Macedonia on Sept 1, 2024, after a four-year stint in Malaysia.
Negotiations for the free trade agreement (FTA) began in October 2010, with eight rounds held until September 2012, but stalled following Malaysia's reservations over palm oil, procurement policies, subsidies and EU's sustainability clauses.
Rokas said EU-Malaysia trade ties are significant while Europe's 27-member grouping is currently a vital source of foreign direct investment "despite the fact we don't have a free trade agreement."
"This, together with both European and Malaysian manufacturers and their respective business sectors wanting an agreement, makes a compelling case to restart negotiations for the stalled Malaysia-EU FTA," he told Bernama here.
It was Prime Minister Datuk Seri Anwar Ibrahim who breathed new life into the stalled MEUFTA talks after leading a successful trade and investment mission to Germany in March this year, when he said Malaysia had finally agreed to rekindle discussions on the trade pact to strengthen bilateral relations and regional integration further. New Straits Times
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Critical information must reach decision-makers- APOA chief
Critical information must reach political decision-makers of Sri Lanka which in turn will help them to lift the ban on palm oil cultivations, said Asian Palm Oil Alliance (APOA) Chairman Atul Charturved.
He was speaking at a seminar last week at Radisson Blue Resort, Galle.
Charturved drew parallels between India and Sri Lanka, adding that India had neglected its oilseed sector and relied on the rest of the world for 60% of its palm oil imports, sending billions of dollars.
“If Indonesia and Malaysia decided to halt palm oil exports, prices in India would skyrocket. Similarly, 80% of Sri Lanka’s edible oil requirements are imported and reversing the ban can have a huge forex bill for Sri Lanka.”
He said that Prime Minister Modi has taken the lead in India and has launched a national mission on palm oil, increasing production from 200,000 to 400,000 tons, with a target of reaching two million tons.
He said that Sri Lankan decision-makers must lift the ban on palm oil. “Despite assurances over the past two years, the ban remains.”
He described the 80% dependence on imports in a country with such beautiful plantations as a travesty and saw no reason for palm oil cultivation to remain banned.
He discussed the similarities between India and Sri Lanka in terms of import substitution. “Out of India’s 16 million tons of oil consumption, palm oil contributed around 38%.”
“In Sri Lanka, most imported edible oils are likely palm oil.”
He asked as to why Sri Lanka should not produce these products domestically, given its ideal climate for palm cultivation, which even India lacks. He said that no other oilseed can compete with palm oil, which yields six to seven tons of oil Charturvedi said that without palm oil, countries would end up buying oil at $2,000 per ton, which is unaffordable. Sunday ObserverLK
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Malaysian Scientist Dr Harikrishna Emphasizes for Potentiality of Oil Palm Cultivation in Tripura; Minister Ratan Lal Nath Inaugurates R&D Center
Agartala, August 10, 2024: In a significant development for the agricultural sector of Tripura, Malaysian scientist Dr. Harikrishna Kulaveerasingam emphasized the potential of oil palm cultivation to transform the state’s economy. Speaking during his inaugural visit to Tripura, Dr. Kulaveerasingam highlighted the importance of a scientific and calculated approach to replicate the successful “Malaysia model.”
“Availability of water is a major boon for India. This state has good soil, availability of labour force, and materials of best standards are being made available here by Godrej. The most important thing is that what should be the best practices will also be studied here in the research center,” Dr. Kulaveerasingam stated.
Dr. Kulaveerasingam was in Tripura to attend the foundation stone laying ceremony of North East India’s first oil palm research center, set to be established in Nalakata, Dhalai district. Reflecting on the future of oil palm cultivation in Tripura, he remarked, “Malaysia was a poor country once upon a time. In the 1950s, the government there decided to set up oil palm nurseries for small holders. Today, if you visit Malaysia as the minister has visited, the whole country has transformed. People who started farming are now employing others. If things fall in the right track, I see the Malaysia model being successfully reflected here if we go forward 20 years. Maybe in the near future, Tripura will import labor from other places.” More North East Today
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Godrej Agrovet to set oil palm processing unit in Tripura
GAVL will also be setting up an advanced Research & Development center for Oil Palm in the vicinity in addition to opening up of Samadhan centre
Godrej Agrovet Ltd (GAVL) said Saturday that its Oil Palm Plantation business plans to set up an oil palm processing unit in Tripura. The Hindu Businessline
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The green fuel revolution
Biofuels can mitigate climate change and secure a cleaner, more sustainable future.
The world is grappling with a climate crisis, and the transportation sector, a major contributor to greenhouse gas emissions, is under the spotlight. The need for cleaner, more sustainable fuels is urgent, and biofuels are emerging as a potential solution.
The need for biofuels
Fossil fuels, the mainstay of our energy system for over a century, are finite resources that contribute significantly to climate change. Burning fossil fuels releases carbon dioxide and other greenhouse gases into the atmosphere, trapping heat and driving global warming. The consequences are dire: rising sea levels, extreme weather events, and ecosystem disruptions.
Global biofuel production: A growing landscape
Biofuel production is gaining momentum globally, with several countries leading the charge.
Brazil: A pioneer in biofuel production, Brazil is the world’s largest ethanol producer, primarily from sugarcane. The country has a well-established biofuel industry, with ethanol accounting for approximately 40% of its transportation fuel.
United States: The US is the second-largest ethanol producer, primarily from corn. Government policies like the Renewable Fuel Standard (RFS) support the country’s biofuel industry.
Europe: The European Union has set ambitious targets for biofuel blending, focusing on sustainable and advanced biofuels. Several European countries, including Germany, France, and Italy, actively promote biofuel production.
India: India is a rapidly growing biofuel market, focusing on sugarcane ethanol production and vegetable oil biodiesel. The government has implemented policies to promote biofuel production and blending. Manufacturing Today India
Decision to restart Malaysia-EU FTA talks imminent, says EU Ambassador to Malaysia
KUALA LUMPUR: Outgoing European Union (EU) Ambassador to Malaysia Michalis Rokas has expressed confidence that the decision to restart negotiations on the stalled Malaysia-EU Free Trade Agreement (MEUFTA) is imminent.
"Having started the stock-taking exercise last year, the decision to restart talks on MEUFTA may take, at the maximum, a couple of months," said Rokas, who will take up his new posting in North Macedonia on Sept 1, 2024, after a four-year stint in Malaysia.
Negotiations for the free trade agreement (FTA) began in October 2010, with eight rounds held until September 2012, but stalled following Malaysia's reservations over palm oil, procurement policies, subsidies and EU's sustainability clauses.
Rokas said EU-Malaysia trade ties are significant while Europe's 27-member grouping is currently a vital source of foreign direct investment "despite the fact we don't have a free trade agreement."
"This, together with both European and Malaysian manufacturers and their respective business sectors wanting an agreement, makes a compelling case to restart negotiations for the stalled Malaysia-EU FTA," he told Bernama here.
It was Prime Minister Datuk Seri Anwar Ibrahim who breathed new life into the stalled MEUFTA talks after leading a successful trade and investment mission to Germany in March this year, when he said Malaysia had finally agreed to rekindle discussions on the trade pact to strengthen bilateral relations and regional integration further. New Straits Times
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Critical information must reach decision-makers- APOA chief
Critical information must reach political decision-makers of Sri Lanka which in turn will help them to lift the ban on palm oil cultivations, said Asian Palm Oil Alliance (APOA) Chairman Atul Charturved.
He was speaking at a seminar last week at Radisson Blue Resort, Galle.
Charturved drew parallels between India and Sri Lanka, adding that India had neglected its oilseed sector and relied on the rest of the world for 60% of its palm oil imports, sending billions of dollars.
“If Indonesia and Malaysia decided to halt palm oil exports, prices in India would skyrocket. Similarly, 80% of Sri Lanka’s edible oil requirements are imported and reversing the ban can have a huge forex bill for Sri Lanka.”
He said that Prime Minister Modi has taken the lead in India and has launched a national mission on palm oil, increasing production from 200,000 to 400,000 tons, with a target of reaching two million tons.
He said that Sri Lankan decision-makers must lift the ban on palm oil. “Despite assurances over the past two years, the ban remains.”
He described the 80% dependence on imports in a country with such beautiful plantations as a travesty and saw no reason for palm oil cultivation to remain banned.
He discussed the similarities between India and Sri Lanka in terms of import substitution. “Out of India’s 16 million tons of oil consumption, palm oil contributed around 38%.”
“In Sri Lanka, most imported edible oils are likely palm oil.”
He asked as to why Sri Lanka should not produce these products domestically, given its ideal climate for palm cultivation, which even India lacks. He said that no other oilseed can compete with palm oil, which yields six to seven tons of oil Charturvedi said that without palm oil, countries would end up buying oil at $2,000 per ton, which is unaffordable. Sunday ObserverLK
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Malaysian Scientist Dr Harikrishna Emphasizes for Potentiality of Oil Palm Cultivation in Tripura; Minister Ratan Lal Nath Inaugurates R&D Center
Agartala, August 10, 2024: In a significant development for the agricultural sector of Tripura, Malaysian scientist Dr. Harikrishna Kulaveerasingam emphasized the potential of oil palm cultivation to transform the state’s economy. Speaking during his inaugural visit to Tripura, Dr. Kulaveerasingam highlighted the importance of a scientific and calculated approach to replicate the successful “Malaysia model.”
“Availability of water is a major boon for India. This state has good soil, availability of labour force, and materials of best standards are being made available here by Godrej. The most important thing is that what should be the best practices will also be studied here in the research center,” Dr. Kulaveerasingam stated.
Dr. Kulaveerasingam was in Tripura to attend the foundation stone laying ceremony of North East India’s first oil palm research center, set to be established in Nalakata, Dhalai district. Reflecting on the future of oil palm cultivation in Tripura, he remarked, “Malaysia was a poor country once upon a time. In the 1950s, the government there decided to set up oil palm nurseries for small holders. Today, if you visit Malaysia as the minister has visited, the whole country has transformed. People who started farming are now employing others. If things fall in the right track, I see the Malaysia model being successfully reflected here if we go forward 20 years. Maybe in the near future, Tripura will import labor from other places.” More North East Today
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Godrej Agrovet to set oil palm processing unit in Tripura
GAVL will also be setting up an advanced Research & Development center for Oil Palm in the vicinity in addition to opening up of Samadhan centre
Godrej Agrovet Ltd (GAVL) said Saturday that its Oil Palm Plantation business plans to set up an oil palm processing unit in Tripura. The Hindu Businessline
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The green fuel revolution
Biofuels can mitigate climate change and secure a cleaner, more sustainable future.
The world is grappling with a climate crisis, and the transportation sector, a major contributor to greenhouse gas emissions, is under the spotlight. The need for cleaner, more sustainable fuels is urgent, and biofuels are emerging as a potential solution.
The need for biofuels
Fossil fuels, the mainstay of our energy system for over a century, are finite resources that contribute significantly to climate change. Burning fossil fuels releases carbon dioxide and other greenhouse gases into the atmosphere, trapping heat and driving global warming. The consequences are dire: rising sea levels, extreme weather events, and ecosystem disruptions.
Global biofuel production: A growing landscape
Biofuel production is gaining momentum globally, with several countries leading the charge.
Brazil: A pioneer in biofuel production, Brazil is the world’s largest ethanol producer, primarily from sugarcane. The country has a well-established biofuel industry, with ethanol accounting for approximately 40% of its transportation fuel.
United States: The US is the second-largest ethanol producer, primarily from corn. Government policies like the Renewable Fuel Standard (RFS) support the country’s biofuel industry.
Europe: The European Union has set ambitious targets for biofuel blending, focusing on sustainable and advanced biofuels. Several European countries, including Germany, France, and Italy, actively promote biofuel production.
India: India is a rapidly growing biofuel market, focusing on sugarcane ethanol production and vegetable oil biodiesel. The government has implemented policies to promote biofuel production and blending. Manufacturing Today India
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August 10, 2024
Indonesia increases funding for palm oil replanting program for smallholders
Jakarta (ANTARA) - Coordinating Minister for Economic Affairs Airlangga Hartarto announced an increase in funds for the Smallholder Oil Palm Rejuvenation (PSR) program from Rp30 million (around US$1.882) to Rp60 million (US$3.762) per plantation.
"The realization of PSR funds has reached Rp9.6 trillion (US$602 million) for 154,886 plantations, or 344,792 hectares, until June 2024," Hartarto noted in his remarks at the Expo LIKE 2 in Jakarta on Friday.
According to the minister, smallholders in the Land Objects for Agrarian Reform (TORA) program could immediately apply for PSR funds, which the government would distribute through the Oil Palm Plantation Fund Management Agency (BPDPKS).
Hartarto highlighted that the funds were expected to increase the productivity of palm oil plantation owners to 24 tons per bunch per hectare.
"We are currently also preparing presidential regulation on the strategy to support sustainable national palm oil, which is expected to replace Presidential Instruction 6 of 2019," he remarked.
Airlangga further explained that the funds' recipients also need to be assisted in business aspects and collaborate with related stakeholders from the ministries, local governments, the banking sector, and entrepreneurs in the palm oil sector.
"In the future, the capacities of community businesses can be increased through village- and regional-based integration," he stated. Antara News
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India's Palm oil Smallholder Farmers Express Gratitude to the Asian Palm Oil Alliance for Advocacy
New Delhi [India], August 9: Smallholder farmers express heartfelt gratitude to the Asian Palm Oil Alliance (APOA) for voicing concerns regarding a recent decision to reduce palm oil content in soaps by 25 per cent. This decision, reportedly influenced by increased palm oil prices and environmental considerations, has significant implications for the livelihoods of smallholder farmers and the broader palm oil industry.
APOA’s Support and Advocacy
Smallholder farmers are extremely thankful to the APOA and its members for highlighting the critical socio-economic importance of palm oil for farmers in countries like Indonesia and Malaysia. Palm oil cultivation is a vital source of income for many, helping to uplift communities and reduce poverty. The APOA’s advocacy guarantees that smallholder farmers have their voices heard on the global stage.
Environmental and Economic Balance
The decision to reduce palm oil content by 25% underscores the complexity of balancing sustainability with economic realities. While smallholder farmers acknowledge the need for environmental stewardship, it is essential to consider the high yield and resource efficiency of palm oil compared to alternative oils. The APOA’s call for transparent, scientifically supported comparisons between palm oil and its substitutes is a necessary step towards informed and balanced decision-making.
Furthermore, smallholder farmers appreciate the APOA’s focus that smallholder farmers face when trying to meet environmental standards. Because the transition to sustainable farming does require intense investment, smallholder farmers require partnerships with large corporations to meet such standards. The APOA’s advocacy for increased procurement from smallholder farmers and alignment with India’s National Mission on Edible Oils – Oil Palm (NMEO-OP) highlights the need for collaborative efforts to support sustainable livelihoods. The Print India
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Trouble looms for India’s Northeast oil palm ambitions
India’s ambitious plan to expand oil palm plantations in its northeastern states is encountering significant environmental and social challenges, according to wildlife biologist and conservation scientist Dr Ravi Chellam.
In his recent article, India’s palm oil plans wreak havoc on the ground, Dr Chellam highlights that the Indian government’s push to increase oil palm cultivation to one million hectares by 2025-26 is fraught with difficulties.
The initiative, aimed at reducing the country’s dependence on palm oil imports, has led to widespread issues on the ground.
More than 50 percent of the proposed increase in the area of cultivation, 328,000ha, is planned in the northeastern states, as identified in an assessment by the Indian Institute of Oil Palm Research in 2020. The plan is also to increase the production of crude palm oil from 27,000 tonnes in 2019-20 to 1.12 million tonnes by 2025-26.
“While the ambition and goals of the oil palm mission are lofty, the on-the-ground situation in the northeast tells a completely different story,” Dr Chellam writes. His observations are particularly focused on the northeastern states of Mizoram, Arunachal Pradesh, and Nagaland, where the challenges have been most pronounced.
Dr Chellam notes that in Mizoram, oil palm plantations have caused soil degradation and water shortages. “Given their intrinsically high requirements of water and nutrients, oil palm plantations have devastated soil health and the quality and availability of groundwater in the state,” he explained. The long gestation period of the oil palm—four to five years before fruiting, followed by a productive period of 20 to 25 years —adds to the complexity of land use in the region.
Dr Chellam also notes that Farmers are also struggling with severe logistical challenges. The rugged terrain, inadequate road infrastructure, and absence of nearby oil mills have created difficulties in processing the nuts, which must be done within 48 hours. Additionally, many farmers report that companies have failed to meet commitments regarding purchase prices and timely payments, while government subsidies have been frequently delayed.
Dr Chellam also finds that land use is a critical issue, with hilly terrain proving unsuitable for oil palm and soil fertility rapidly declining. The long-term commitment required for oil palm cultivation has forced some to sell their land due to financial losses.
In Arunachal Pradesh, the conversion of community lands into private property is raising concerns about social disruption and marginalization of poorer communities.
“The fear is that more and more of community land will get converted into at least de facto private property when planted with oil palm due to the decades-long lock-in period. This dispossession is likely to result in further marginalization of the poorer sections of society and could potentially lead to social turmoil and conflict,” wrote Dr Chellam.
Sikkim and Meghalaya have decided to stay away from planting oil palm.
According to Dr Chellam, while some farmers in Arunachal Pradesh are beginning to see benefits from their oil palm plantations, it is still too early to draw definitive conclusions about the crop’s success in the state. The situation in Arunachal Pradesh contrasts with the longer-term experience in Mizoram, where the challenges of oil palm cultivation have been more thoroughly documented.
Since January 2023, researchers have been closely monitoring the impact of oil palm cultivation in Nagaland, engaging with tribal elders and civil society members. Their findings indicate that Nagaland is following a trajectory similar to Arunachal Pradesh, with wealthier individuals consolidating landholdings to establish plantations, often at the expense of smaller landholders.
“It is clear that oil palm is a capital-intensive and very long-term crop. Deep pockets are required to survive and succeed,” added Dr Chellam.
Oil palm cultivation is proving to be capital-intensive and long-term, requiring substantial investment to be viable. Farmers have expressed significant frustration due to delays, reductions, or even complete stoppages of committed government subsidies. Many have also reported issues with private companies, including lower-than-promised purchase prices and delayed payments.
The challenges extend to logistical issues, as fresh fruit bunches—perishable and requiring processing within 24 to 48 hours—are often poorly coordinated. There is a lack of reliable information and guidance for farmers, adding to their difficulties.
Environmental and social issues are also prevalent. In Nagaland, Dr Chellam wrote that the oil palm plantations are causing soil depletion, water shortages, and increasing use of hazardous agro-chemicals. Additionally, there are rising labor costs, reduced employment opportunities for women, and shifts in land tenure and ownership. Recent fieldwork has shown a mixed picture, with some farmers experiencing unfulfilled commitments and significant financial losses, while others are receiving government subsidies and payments, though at a lower rate than anticipated.
The long-term experience with oil palm in India’s northeast has highlighted both financial and social drawbacks. Considering the environmental impacts, experts suggest that government policy should focus on promoting local and ecologically appropriate oil-bearing crops rather than heavily supporting oil palm. Despite current efforts, estimates suggest that India will not achieve self-sufficiency in edible oil through oil palm cultivation alone. Mokokchung Times
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India’s palm oil plans wreak havoc on the ground
By Ravi Chellam, Biodiversity Collaborative in Bangalore
The push for large-scale monoculture plantations of oil palm is taking a toll on the environment and on people's economic and social security.
In late July, an unusual newspaper headline did the rounds: "If India gives land, we will work together to produce palm oil here, says visiting Malaysian Minister."
Foreign politicians do not often ask the country they are visiting to give land, in particular for cultivating a plant which produces oil seeds.
In this case, the seeds refer to the oil palm, a species native to West Africa and now widely cultivated, especially in Southeast Asia. Oil palm is seen as the world's most important oil crop, supplying approximately 40 percent of global demand for vegetable oil.
Clearly, the pressure is building on big palm oil-producing countries such as Malaysia and Indonesia to clean up their act.
The European Union has taken a strong stance on cleaning up supply chains to prevent deforestation, environmental degradation and negative impacts on local communities.
India is the world's largest importer of edible oils but this was not always the case.
Indians have traditionally used a wide variety of edible oils, a reflection of India's rich agro-ecological heritage and cultural diversity. In the early 1990s, India was self-sufficient in edible oils but thanks to changes in government policies, that situation has reversed.
Palm oil now dominates India's edible oil imports, representing more than half of all edible oil imports. In 2021, palm oil import was valued at approximately $US8.63 billion.
Due to this significant dependence on imports, there has been a strong push by the Indian government to rapidly increase the cultivation of oil palm, especially in India's northeast, through the National Mission on Edible Oils — Oil Palm.
It has set ambitious goals to increase the area of oil palm cultivation in India to one million hectares by 2025-26 from 350,000ha in 2019-20.
However, the government's efforts in promoting oil palm plantations in the northeast, which are strengthened by substantial subsidies, are playing havoc with tribal society.
Land is a scarce resource in the northeast and existing land, often community-owned and managed, has traditionally been used for subsistence farming with an eye on food security. This is changing and creating social disruption.
Challenges of growing oil palm
More than 50 percent of the proposed increase in the area of cultivation, 328,000ha, is planned in the northeastern states, as identified in an assessment by the Indian Institute of Oil Palm Research in 2020.
The plan is also to increase the production of crude palm oil from 27,000 tonnes in 2019-20 to 1.12 million tonnes by 2025-26.
While the ambition and goals of the oil palm mission are lofty, the on-the-ground situation in the northeast tells a completely different story.
Mizoram was the first state to start planting oil palm in the northeast. Plantations were established in seven districts of the state and at least some of these date back to 2005.
Over the last two decades, oil palm plantations have invariably resulted in setbacks and failures for everyone involved.
Given their intrinsically high requirements of water and nutrients, oil palm plantations have devastated soil health and the quality and availability of groundwater in the state.
Another issue is the long gestation period of the crop. The oil palm takes at least four to five years before it starts producing fruit, followed by a productive period of 20 to 25 years.
This adds up to 25 to 30 years, a long time to lock in precious land resources, especially in a densely populated country such as India.
The challenges with environmental sustainability, productivity, transport, failings of the government and corporate behaviour have meant that both farmers and the companies have had to deal with large-scale failures and heavy losses.
The rugged terrain and remote location of the plantations, coupled with the relatively poor road network and the absence of oil mills close to many of the plantations poses severe challenges to the farmers.
The nuts have to be processed within 48 hours, which currently is a logistical nightmare, especially for many small-scale farmers.
Many companies haven't honoured their commitments to farmers be it on purchase price or timely payments. Government subsidies have also been often delayed.
The land question
Land is the central issue for the palm oil enterprise.
Be it terrain, with hilly terrain not being suitable for oil palm plantations; rapidly depleting soil fertility or reduced access to land owned by small landholders because of the three decade lock-in period.
In several cases, people have had to sell their land due to the extensive financial losses they've suffered while cultivating oil palm.
The capture of common lands for planting oil palm by the elite of the society is a large-scale problem, especially in Arunachal Pradesh, another northeastern state.
The fear is that more and more of community land will get converted into at least de facto private property when planted with oil palm due to the decades-long lock-in period.
This dispossession is likely to result in further marginalisation of the poorer sections of society and could potentially lead to social turmoil and conflict.
The problems are many and widespread.
Farmers across the northeast are not readily taking up planting of oil palm as they have started to realise the environmental costs, the meagre and very often delayed economic returns and the three-decade-long lock-in period of their land.
Sikkim and Meghalaya have decided to stay away from planting oil palm.
A recent report seems to indicate that at least some farmers in Arunachal Pradesh are starting to gain benefits from their oil palm plantations. These are still very early days to reach any definite conclusion about the situation in Arunachal, unlike the much longer Mizoram experience.
Since January 2023, researchers have engaged with tribal elders and civil society members in Nagaland which has provided them a close view of how things are playing out for oil palm in the state.
Nagaland seems to be following a similar path to Arunachal Pradesh, with the wealthy consolidating landholdings to establish plantations, resulting in small landholders losing out.
It is clear that oil palm is a capital-intensive and very long-term crop. Deep pockets are required to survive and succeed.
Almost everyone researchers interacted with expressed their disappointment at the delays, reduction or even complete stoppage of payment of the committed government subsidies.
Farmer frustrations
Farmers' experiences in dealing with private companies that had committed to buy oil palm fruit has been an even greater disappointment.
The purchase price for these bunches is much lower than what was initially indicated and payments are unduly delayed.
Even the picking up of fresh fruit bunches, a perishable commodity which has to be processed within 24 to 48 hours post-harvesting, is poorly coordinated and there is a lack of reliable information and guidance for farmers.
The environmental and social issues associated with oil palm plantations are also playing out in Nagaland, including depleting soils, water shortages, the increasing use of hazardous agro-chemicals, rapidly increasing labour costs, women losing out on employment opportunities and shifts in land tenure and ownership.
Recent fieldwork in Nagaland through meetings and conversations with farmers presents a mixed picture.
Several farmers confirmed their fresh fruit bunches have not been picked up by companies. They believe it might have something to do with the company's assessment of the quality of the fruit.
This is not in line with the commitment that was made to these farmers and is resulting in tremendous losses for them.
A few others are receiving the government subsidies and their fresh fruit bunches have also been picked up by the companies and they have been paid Rs13 a kilogram, approximately $USD 0.16.
Course correction
The longer-term experience with oil palm hasn't been good for farmers in India's northeast both from financial and social perspectives.
When also considering the environmental impacts, it is clear that the push for large-scale cultivation of oil palm in the region is taking a toll on the environment as well on people's economic and social security.
Government policy would benefit from encouraging local and ecologically-appropriate oil-bearing crops rather than massively supporting oil palm.
Even the government's own estimates do not predict India gaining self-sufficiency in edible oil by cultivating oil palm in India.
Rethinking this policy may be required so that India can regain self-sufficiency in edible oils, a position we enjoyed not so long ago. East Mojo
Indonesia increases funding for palm oil replanting program for smallholders
Jakarta (ANTARA) - Coordinating Minister for Economic Affairs Airlangga Hartarto announced an increase in funds for the Smallholder Oil Palm Rejuvenation (PSR) program from Rp30 million (around US$1.882) to Rp60 million (US$3.762) per plantation.
"The realization of PSR funds has reached Rp9.6 trillion (US$602 million) for 154,886 plantations, or 344,792 hectares, until June 2024," Hartarto noted in his remarks at the Expo LIKE 2 in Jakarta on Friday.
According to the minister, smallholders in the Land Objects for Agrarian Reform (TORA) program could immediately apply for PSR funds, which the government would distribute through the Oil Palm Plantation Fund Management Agency (BPDPKS).
Hartarto highlighted that the funds were expected to increase the productivity of palm oil plantation owners to 24 tons per bunch per hectare.
"We are currently also preparing presidential regulation on the strategy to support sustainable national palm oil, which is expected to replace Presidential Instruction 6 of 2019," he remarked.
Airlangga further explained that the funds' recipients also need to be assisted in business aspects and collaborate with related stakeholders from the ministries, local governments, the banking sector, and entrepreneurs in the palm oil sector.
"In the future, the capacities of community businesses can be increased through village- and regional-based integration," he stated. Antara News
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India's Palm oil Smallholder Farmers Express Gratitude to the Asian Palm Oil Alliance for Advocacy
New Delhi [India], August 9: Smallholder farmers express heartfelt gratitude to the Asian Palm Oil Alliance (APOA) for voicing concerns regarding a recent decision to reduce palm oil content in soaps by 25 per cent. This decision, reportedly influenced by increased palm oil prices and environmental considerations, has significant implications for the livelihoods of smallholder farmers and the broader palm oil industry.
APOA’s Support and Advocacy
Smallholder farmers are extremely thankful to the APOA and its members for highlighting the critical socio-economic importance of palm oil for farmers in countries like Indonesia and Malaysia. Palm oil cultivation is a vital source of income for many, helping to uplift communities and reduce poverty. The APOA’s advocacy guarantees that smallholder farmers have their voices heard on the global stage.
Environmental and Economic Balance
The decision to reduce palm oil content by 25% underscores the complexity of balancing sustainability with economic realities. While smallholder farmers acknowledge the need for environmental stewardship, it is essential to consider the high yield and resource efficiency of palm oil compared to alternative oils. The APOA’s call for transparent, scientifically supported comparisons between palm oil and its substitutes is a necessary step towards informed and balanced decision-making.
Furthermore, smallholder farmers appreciate the APOA’s focus that smallholder farmers face when trying to meet environmental standards. Because the transition to sustainable farming does require intense investment, smallholder farmers require partnerships with large corporations to meet such standards. The APOA’s advocacy for increased procurement from smallholder farmers and alignment with India’s National Mission on Edible Oils – Oil Palm (NMEO-OP) highlights the need for collaborative efforts to support sustainable livelihoods. The Print India
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Trouble looms for India’s Northeast oil palm ambitions
India’s ambitious plan to expand oil palm plantations in its northeastern states is encountering significant environmental and social challenges, according to wildlife biologist and conservation scientist Dr Ravi Chellam.
In his recent article, India’s palm oil plans wreak havoc on the ground, Dr Chellam highlights that the Indian government’s push to increase oil palm cultivation to one million hectares by 2025-26 is fraught with difficulties.
The initiative, aimed at reducing the country’s dependence on palm oil imports, has led to widespread issues on the ground.
More than 50 percent of the proposed increase in the area of cultivation, 328,000ha, is planned in the northeastern states, as identified in an assessment by the Indian Institute of Oil Palm Research in 2020. The plan is also to increase the production of crude palm oil from 27,000 tonnes in 2019-20 to 1.12 million tonnes by 2025-26.
“While the ambition and goals of the oil palm mission are lofty, the on-the-ground situation in the northeast tells a completely different story,” Dr Chellam writes. His observations are particularly focused on the northeastern states of Mizoram, Arunachal Pradesh, and Nagaland, where the challenges have been most pronounced.
Dr Chellam notes that in Mizoram, oil palm plantations have caused soil degradation and water shortages. “Given their intrinsically high requirements of water and nutrients, oil palm plantations have devastated soil health and the quality and availability of groundwater in the state,” he explained. The long gestation period of the oil palm—four to five years before fruiting, followed by a productive period of 20 to 25 years —adds to the complexity of land use in the region.
Dr Chellam also notes that Farmers are also struggling with severe logistical challenges. The rugged terrain, inadequate road infrastructure, and absence of nearby oil mills have created difficulties in processing the nuts, which must be done within 48 hours. Additionally, many farmers report that companies have failed to meet commitments regarding purchase prices and timely payments, while government subsidies have been frequently delayed.
Dr Chellam also finds that land use is a critical issue, with hilly terrain proving unsuitable for oil palm and soil fertility rapidly declining. The long-term commitment required for oil palm cultivation has forced some to sell their land due to financial losses.
In Arunachal Pradesh, the conversion of community lands into private property is raising concerns about social disruption and marginalization of poorer communities.
“The fear is that more and more of community land will get converted into at least de facto private property when planted with oil palm due to the decades-long lock-in period. This dispossession is likely to result in further marginalization of the poorer sections of society and could potentially lead to social turmoil and conflict,” wrote Dr Chellam.
Sikkim and Meghalaya have decided to stay away from planting oil palm.
According to Dr Chellam, while some farmers in Arunachal Pradesh are beginning to see benefits from their oil palm plantations, it is still too early to draw definitive conclusions about the crop’s success in the state. The situation in Arunachal Pradesh contrasts with the longer-term experience in Mizoram, where the challenges of oil palm cultivation have been more thoroughly documented.
Since January 2023, researchers have been closely monitoring the impact of oil palm cultivation in Nagaland, engaging with tribal elders and civil society members. Their findings indicate that Nagaland is following a trajectory similar to Arunachal Pradesh, with wealthier individuals consolidating landholdings to establish plantations, often at the expense of smaller landholders.
“It is clear that oil palm is a capital-intensive and very long-term crop. Deep pockets are required to survive and succeed,” added Dr Chellam.
Oil palm cultivation is proving to be capital-intensive and long-term, requiring substantial investment to be viable. Farmers have expressed significant frustration due to delays, reductions, or even complete stoppages of committed government subsidies. Many have also reported issues with private companies, including lower-than-promised purchase prices and delayed payments.
The challenges extend to logistical issues, as fresh fruit bunches—perishable and requiring processing within 24 to 48 hours—are often poorly coordinated. There is a lack of reliable information and guidance for farmers, adding to their difficulties.
Environmental and social issues are also prevalent. In Nagaland, Dr Chellam wrote that the oil palm plantations are causing soil depletion, water shortages, and increasing use of hazardous agro-chemicals. Additionally, there are rising labor costs, reduced employment opportunities for women, and shifts in land tenure and ownership. Recent fieldwork has shown a mixed picture, with some farmers experiencing unfulfilled commitments and significant financial losses, while others are receiving government subsidies and payments, though at a lower rate than anticipated.
The long-term experience with oil palm in India’s northeast has highlighted both financial and social drawbacks. Considering the environmental impacts, experts suggest that government policy should focus on promoting local and ecologically appropriate oil-bearing crops rather than heavily supporting oil palm. Despite current efforts, estimates suggest that India will not achieve self-sufficiency in edible oil through oil palm cultivation alone. Mokokchung Times
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India’s palm oil plans wreak havoc on the ground
By Ravi Chellam, Biodiversity Collaborative in Bangalore
The push for large-scale monoculture plantations of oil palm is taking a toll on the environment and on people's economic and social security.
In late July, an unusual newspaper headline did the rounds: "If India gives land, we will work together to produce palm oil here, says visiting Malaysian Minister."
Foreign politicians do not often ask the country they are visiting to give land, in particular for cultivating a plant which produces oil seeds.
In this case, the seeds refer to the oil palm, a species native to West Africa and now widely cultivated, especially in Southeast Asia. Oil palm is seen as the world's most important oil crop, supplying approximately 40 percent of global demand for vegetable oil.
Clearly, the pressure is building on big palm oil-producing countries such as Malaysia and Indonesia to clean up their act.
The European Union has taken a strong stance on cleaning up supply chains to prevent deforestation, environmental degradation and negative impacts on local communities.
India is the world's largest importer of edible oils but this was not always the case.
Indians have traditionally used a wide variety of edible oils, a reflection of India's rich agro-ecological heritage and cultural diversity. In the early 1990s, India was self-sufficient in edible oils but thanks to changes in government policies, that situation has reversed.
Palm oil now dominates India's edible oil imports, representing more than half of all edible oil imports. In 2021, palm oil import was valued at approximately $US8.63 billion.
Due to this significant dependence on imports, there has been a strong push by the Indian government to rapidly increase the cultivation of oil palm, especially in India's northeast, through the National Mission on Edible Oils — Oil Palm.
It has set ambitious goals to increase the area of oil palm cultivation in India to one million hectares by 2025-26 from 350,000ha in 2019-20.
However, the government's efforts in promoting oil palm plantations in the northeast, which are strengthened by substantial subsidies, are playing havoc with tribal society.
Land is a scarce resource in the northeast and existing land, often community-owned and managed, has traditionally been used for subsistence farming with an eye on food security. This is changing and creating social disruption.
Challenges of growing oil palm
More than 50 percent of the proposed increase in the area of cultivation, 328,000ha, is planned in the northeastern states, as identified in an assessment by the Indian Institute of Oil Palm Research in 2020.
The plan is also to increase the production of crude palm oil from 27,000 tonnes in 2019-20 to 1.12 million tonnes by 2025-26.
While the ambition and goals of the oil palm mission are lofty, the on-the-ground situation in the northeast tells a completely different story.
Mizoram was the first state to start planting oil palm in the northeast. Plantations were established in seven districts of the state and at least some of these date back to 2005.
Over the last two decades, oil palm plantations have invariably resulted in setbacks and failures for everyone involved.
Given their intrinsically high requirements of water and nutrients, oil palm plantations have devastated soil health and the quality and availability of groundwater in the state.
Another issue is the long gestation period of the crop. The oil palm takes at least four to five years before it starts producing fruit, followed by a productive period of 20 to 25 years.
This adds up to 25 to 30 years, a long time to lock in precious land resources, especially in a densely populated country such as India.
The challenges with environmental sustainability, productivity, transport, failings of the government and corporate behaviour have meant that both farmers and the companies have had to deal with large-scale failures and heavy losses.
The rugged terrain and remote location of the plantations, coupled with the relatively poor road network and the absence of oil mills close to many of the plantations poses severe challenges to the farmers.
The nuts have to be processed within 48 hours, which currently is a logistical nightmare, especially for many small-scale farmers.
Many companies haven't honoured their commitments to farmers be it on purchase price or timely payments. Government subsidies have also been often delayed.
The land question
Land is the central issue for the palm oil enterprise.
Be it terrain, with hilly terrain not being suitable for oil palm plantations; rapidly depleting soil fertility or reduced access to land owned by small landholders because of the three decade lock-in period.
In several cases, people have had to sell their land due to the extensive financial losses they've suffered while cultivating oil palm.
The capture of common lands for planting oil palm by the elite of the society is a large-scale problem, especially in Arunachal Pradesh, another northeastern state.
The fear is that more and more of community land will get converted into at least de facto private property when planted with oil palm due to the decades-long lock-in period.
This dispossession is likely to result in further marginalisation of the poorer sections of society and could potentially lead to social turmoil and conflict.
The problems are many and widespread.
Farmers across the northeast are not readily taking up planting of oil palm as they have started to realise the environmental costs, the meagre and very often delayed economic returns and the three-decade-long lock-in period of their land.
Sikkim and Meghalaya have decided to stay away from planting oil palm.
A recent report seems to indicate that at least some farmers in Arunachal Pradesh are starting to gain benefits from their oil palm plantations. These are still very early days to reach any definite conclusion about the situation in Arunachal, unlike the much longer Mizoram experience.
Since January 2023, researchers have engaged with tribal elders and civil society members in Nagaland which has provided them a close view of how things are playing out for oil palm in the state.
Nagaland seems to be following a similar path to Arunachal Pradesh, with the wealthy consolidating landholdings to establish plantations, resulting in small landholders losing out.
It is clear that oil palm is a capital-intensive and very long-term crop. Deep pockets are required to survive and succeed.
Almost everyone researchers interacted with expressed their disappointment at the delays, reduction or even complete stoppage of payment of the committed government subsidies.
Farmer frustrations
Farmers' experiences in dealing with private companies that had committed to buy oil palm fruit has been an even greater disappointment.
The purchase price for these bunches is much lower than what was initially indicated and payments are unduly delayed.
Even the picking up of fresh fruit bunches, a perishable commodity which has to be processed within 24 to 48 hours post-harvesting, is poorly coordinated and there is a lack of reliable information and guidance for farmers.
The environmental and social issues associated with oil palm plantations are also playing out in Nagaland, including depleting soils, water shortages, the increasing use of hazardous agro-chemicals, rapidly increasing labour costs, women losing out on employment opportunities and shifts in land tenure and ownership.
Recent fieldwork in Nagaland through meetings and conversations with farmers presents a mixed picture.
Several farmers confirmed their fresh fruit bunches have not been picked up by companies. They believe it might have something to do with the company's assessment of the quality of the fruit.
This is not in line with the commitment that was made to these farmers and is resulting in tremendous losses for them.
A few others are receiving the government subsidies and their fresh fruit bunches have also been picked up by the companies and they have been paid Rs13 a kilogram, approximately $USD 0.16.
Course correction
The longer-term experience with oil palm hasn't been good for farmers in India's northeast both from financial and social perspectives.
When also considering the environmental impacts, it is clear that the push for large-scale cultivation of oil palm in the region is taking a toll on the environment as well on people's economic and social security.
Government policy would benefit from encouraging local and ecologically-appropriate oil-bearing crops rather than massively supporting oil palm.
Even the government's own estimates do not predict India gaining self-sufficiency in edible oil by cultivating oil palm in India.
Rethinking this policy may be required so that India can regain self-sufficiency in edible oils, a position we enjoyed not so long ago. East Mojo
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August 09, 2024
Palm oil biofuels pushed to cut rice production cost in the Philippines
MANILA, Philippines — Biofuel advocates are pushing for innovative solutions to lower the cost of rice production, as President Marcos reaffirmed his commitment to bring down the price of the country’s main staple, which currently ranges from P45 to P65 per kilo.
An alternative measure would be the use of biofuel, an economical and environment-friendly energy source for powering farm machinery and rice mills.
Currently, the government mandates a three percent coco methyl ester (CME) blend in all diesel fuel sold nationwide. The Department of Energy has noted a potential net savings of P4.17 per liter of diesel with a higher CME blend of five percent, corresponding to a 10 percent increase in mileage for vehicles using biodiesel, including farm vehicles. These savings could be even greater with the use of crude palm oil, which costs lower than crude coconut oil, at P51 versus P81, respectively. Philstar
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Indonesia palm oil lobby pushes 1 million hectares of new Sulawesi plantations
GORONTALO, Indonesia — A palm oil industry body and a state-owned company are proposing a vast new palm oil plan encompassing around 1 million hectares (nearly 2.5 million acres) of new plantations across the Indonesian island of Sulawesi.
“This growth will not only increase income for companies, but also for smallholder farmers who depend on oil palm cultivation for their livelihoods,” said Machmud Achmad, acting head of PT Sulsel Citra Indonesia (SCI).
SCI is a form of municipal state-owned company, known in Indonesia as a Perseroda, which is owned by the South Sulawesi provincial government. SCI has proposed the new plantation area together with the Indonesian Plantation Companies Association (GPPI), an industry body.
On May 21, SCI and GPPI signed a memorandum of understanding to collaborate toward initiating the project, dubbed the Sulawesi Palm Oil Belt.
The new palm oil belt plan includes areas in South Sulawesi province covering 100,000 hectares (247,000 acres), 290,000 hectares (717,000 acres) in Southeast Sulawesi, 120,000 hectares (297,000 acres) in West Sulawesi and 300,000 hectares (741,000 acres) in Central Sulawesi, with Gorontalo at 95,000 hectares (235,000 acres) and North Sulawesi at 70,000 hectares (173,000 acres).
Palm oil companies in Indonesia, the world’s leading producer of the ubiquitous edible oil, cleared 30,000 hectares (74,100 acres) of rainforest for plantations in 2023, an increase from 22,000 hectares (54,400 acres) in 2022. More Mongabay
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Malaysia's FGV Reinforces Sustainability Commitment With First EUDR-compliant CPKO Production
KUALA LUMPUR, Aug 8 (Bernama) -- FGV Holdings Bhd has reinforced its commitment to sustainable practices with the first production of its European Union Deforestation Regulation (EUDR)-compliant crude palm kernel oil (CPKO).
This achievement marks another significant milestone for FGV as one of the first Malaysian companies to produce EUDR-compliant CPKO, the company said in a statement.
CPKO, primarily used in food and personal care products, including non-dairy ice cream, margarine, chocolate, confectionery, soap and detergent, is now produced in compliance with stringent EUDR standards.
The EUDR is a legislative framework aimed at ensuring products imported into the European Union are free from deforestation and forest degradation activities.
FGV’s ability to produce EUDR-compliant CPKO for clients worldwide showcases its dedication to upholding global sustainability standards and regulatory compliance.
Group chief executive officer Datuk Nazrul Mansor said FGV understands the critical role that businesses must play in addressing the pressing environmental and social challenges.
“Our production of EUDR-compliant CPKO marks a major advancement for our operations and underscores our dedication to meeting stringent global environmental and social standards.
“This achievement will positively impact our bottom line over time and reflects our proactive approach to environmental stewardship and our commitment to sustainable palm oil production,” he said.
FGV has focused on sourcing its fresh fruit bunches from three key sources: its estates, the Federal Land Development Authority’s (FELDA) settlers, and independent smallholders who are already in line with EUDR, Malaysian Sustainable Palm Oil Certification (MSPO) or Roundtable on Sustainable Palm Oil (RSPO) traceability requirements. Bernama
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'The Stories of Palm Oil' a 5-part documentary series launched
New Delhi [India], August 8: ‘The Stories of Palm Oil’, a five-part documentary series sheds light on the social, economic, industrial and environmental impact of Palm Oil on the world. The series offers a comprehensive view about the production, consumption and sustainability of Palm Oil. As the world’s second-largest producer of palm oil, Malaysia plays a crucial role in meeting global demand, with India its largest importer. Through a detailed report, the series draws attention to the significance of Palm Oil in global food security and bilateral relations between India and Malaysia.
The documentary showcases the health benefits of palm oil, noting its rich natural nutrients, including tocotrienols, which support cardiovascular health and offer antioxidant properties. Additionally, it is an excellent source of fatty acids, free of trans fats, and contains lower levels of omega-6 compared to oils like sunflower and sesame, which reduces its inflammatory potential. Palm oil is safe for consumption in moderation and has a high smoke point, making it ideal for frying while preserving nutritional integrity and flavour. Palm oil also has a significant role to play in heart health, brain function, and addressing vitamin A deficiency. Its antioxidant properties also aid in conditions such as Alzheimer’s and Dementia.
Malaysia has been instrumental in aiding support to India with high-quality seeds and technological expertise. In the process of becoming ‘Atmanirbhar,’ India’s NMEO-OP initiative has witnessed growth in the production of PO indigenously from 300,000 hectares to 450,000 hectares recently. The government aims to expand this to 1 million hectares by 2027.
Datuk Seri Johari Abdul Ghani, Malaysia’s Minister of Plantation Industries and Commodities, emphasised the economic significance of palm oil, stating: “Palm oil is a very significant commodity for us. It contributes roughly 3% to our GDP, which is about $400 billion USD. Palm oil cultivation covers about 5.7 million hectares in Malaysia. Large companies employ around 1 million workers, while smallholders support about 450,000 households. This activity generates significant income and revenue for these communities.”
Belvinder Sron, CEO of the Malaysian Palm Oil Council (MPOC), highlighted the sector’s importance in meeting food security, with significant exports and a focus on refining and processing techniques. She said: “The flourishing industry, resulting from over 100 years of persistent effort and strategic planning, has been bolstered by good government policies, incentives, infrastructure, and regulatory frameworks. We have invested significantly in refining cultivation and processing techniques, increasing productivity and quality. Last year, we exported about 24 million tonnes of palm oil and products, valued at around $22 billion USD, highlighting the sector’s importance in meeting food security.” The Print India
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Palm oil: From environmental villain to climate hero
The Malaysian palm oil industry is making notable progress in addressing climate change and sustainability issues
Malaysia is the world's second-largest producer of palm oil after Indonesia, with an annual output of about 19 million tonnes.
However, this thriving industry produces substantial amounts of waste.
Each tonne of crude palm oil produced generates approximately 4 tonnes of dry palm biomass and 3.5 tonnes of palm oil mill effluent.
At palm oil mills, the oil extraction process generates palm biomass, including empty fruit bunches, mesocarp fibres and palm kernel shells, as well as palm oil mill effluent.
Another major source of palm biomass is the plantation, where oil palm trunks and fronds can be found in abundance.
Energy potential
Palm biomass and waste products have an incredible potential to be converted into renewable palm bioenergy. This energy could be used to help Malaysia reduce its reliance on fossil fuels.
Palm biomass from palm oil mills alone has an estimated energy potential of about 5,000 megawatts (MW) — enough energy to replace almost 40 percent of Malaysia's yearly dependence on coal (based on 2021 data).
Biogas generated from palm oil mill effluent has an estimated energy potential of 540 megawatts, which is equivalent to 1.4 per cent of Malaysia's installed capacity mix (based on 2021 data).
Indeed, the prospect of palm bioenergy is promising as a means to help Malaysia transition to a low-carbon and circular economy. Palm bioenergy could also support Malaysia's goals of achieving 70 per cent renewable energy and net-zero emissions by 2050.
Despite intensifying efforts to utilise these wastes in the energy sector, most of them remain relatively untapped due to several technical challenges.
Technical challenges
Compared to woody biomass, palm biomass has relatively higher impurity contents such as ash and moisture that can affect the combustion process and efficiency. Innovations in pre-treatment technologies are needed to improve the suitability of palm biomass as boiler fuels. Down to earth
Palm oil biofuels pushed to cut rice production cost in the Philippines
MANILA, Philippines — Biofuel advocates are pushing for innovative solutions to lower the cost of rice production, as President Marcos reaffirmed his commitment to bring down the price of the country’s main staple, which currently ranges from P45 to P65 per kilo.
An alternative measure would be the use of biofuel, an economical and environment-friendly energy source for powering farm machinery and rice mills.
Currently, the government mandates a three percent coco methyl ester (CME) blend in all diesel fuel sold nationwide. The Department of Energy has noted a potential net savings of P4.17 per liter of diesel with a higher CME blend of five percent, corresponding to a 10 percent increase in mileage for vehicles using biodiesel, including farm vehicles. These savings could be even greater with the use of crude palm oil, which costs lower than crude coconut oil, at P51 versus P81, respectively. Philstar
--------
Indonesia palm oil lobby pushes 1 million hectares of new Sulawesi plantations
GORONTALO, Indonesia — A palm oil industry body and a state-owned company are proposing a vast new palm oil plan encompassing around 1 million hectares (nearly 2.5 million acres) of new plantations across the Indonesian island of Sulawesi.
“This growth will not only increase income for companies, but also for smallholder farmers who depend on oil palm cultivation for their livelihoods,” said Machmud Achmad, acting head of PT Sulsel Citra Indonesia (SCI).
SCI is a form of municipal state-owned company, known in Indonesia as a Perseroda, which is owned by the South Sulawesi provincial government. SCI has proposed the new plantation area together with the Indonesian Plantation Companies Association (GPPI), an industry body.
On May 21, SCI and GPPI signed a memorandum of understanding to collaborate toward initiating the project, dubbed the Sulawesi Palm Oil Belt.
The new palm oil belt plan includes areas in South Sulawesi province covering 100,000 hectares (247,000 acres), 290,000 hectares (717,000 acres) in Southeast Sulawesi, 120,000 hectares (297,000 acres) in West Sulawesi and 300,000 hectares (741,000 acres) in Central Sulawesi, with Gorontalo at 95,000 hectares (235,000 acres) and North Sulawesi at 70,000 hectares (173,000 acres).
Palm oil companies in Indonesia, the world’s leading producer of the ubiquitous edible oil, cleared 30,000 hectares (74,100 acres) of rainforest for plantations in 2023, an increase from 22,000 hectares (54,400 acres) in 2022. More Mongabay
--------
Malaysia's FGV Reinforces Sustainability Commitment With First EUDR-compliant CPKO Production
KUALA LUMPUR, Aug 8 (Bernama) -- FGV Holdings Bhd has reinforced its commitment to sustainable practices with the first production of its European Union Deforestation Regulation (EUDR)-compliant crude palm kernel oil (CPKO).
This achievement marks another significant milestone for FGV as one of the first Malaysian companies to produce EUDR-compliant CPKO, the company said in a statement.
CPKO, primarily used in food and personal care products, including non-dairy ice cream, margarine, chocolate, confectionery, soap and detergent, is now produced in compliance with stringent EUDR standards.
The EUDR is a legislative framework aimed at ensuring products imported into the European Union are free from deforestation and forest degradation activities.
FGV’s ability to produce EUDR-compliant CPKO for clients worldwide showcases its dedication to upholding global sustainability standards and regulatory compliance.
Group chief executive officer Datuk Nazrul Mansor said FGV understands the critical role that businesses must play in addressing the pressing environmental and social challenges.
“Our production of EUDR-compliant CPKO marks a major advancement for our operations and underscores our dedication to meeting stringent global environmental and social standards.
“This achievement will positively impact our bottom line over time and reflects our proactive approach to environmental stewardship and our commitment to sustainable palm oil production,” he said.
FGV has focused on sourcing its fresh fruit bunches from three key sources: its estates, the Federal Land Development Authority’s (FELDA) settlers, and independent smallholders who are already in line with EUDR, Malaysian Sustainable Palm Oil Certification (MSPO) or Roundtable on Sustainable Palm Oil (RSPO) traceability requirements. Bernama
--------
'The Stories of Palm Oil' a 5-part documentary series launched
New Delhi [India], August 8: ‘The Stories of Palm Oil’, a five-part documentary series sheds light on the social, economic, industrial and environmental impact of Palm Oil on the world. The series offers a comprehensive view about the production, consumption and sustainability of Palm Oil. As the world’s second-largest producer of palm oil, Malaysia plays a crucial role in meeting global demand, with India its largest importer. Through a detailed report, the series draws attention to the significance of Palm Oil in global food security and bilateral relations between India and Malaysia.
The documentary showcases the health benefits of palm oil, noting its rich natural nutrients, including tocotrienols, which support cardiovascular health and offer antioxidant properties. Additionally, it is an excellent source of fatty acids, free of trans fats, and contains lower levels of omega-6 compared to oils like sunflower and sesame, which reduces its inflammatory potential. Palm oil is safe for consumption in moderation and has a high smoke point, making it ideal for frying while preserving nutritional integrity and flavour. Palm oil also has a significant role to play in heart health, brain function, and addressing vitamin A deficiency. Its antioxidant properties also aid in conditions such as Alzheimer’s and Dementia.
Malaysia has been instrumental in aiding support to India with high-quality seeds and technological expertise. In the process of becoming ‘Atmanirbhar,’ India’s NMEO-OP initiative has witnessed growth in the production of PO indigenously from 300,000 hectares to 450,000 hectares recently. The government aims to expand this to 1 million hectares by 2027.
Datuk Seri Johari Abdul Ghani, Malaysia’s Minister of Plantation Industries and Commodities, emphasised the economic significance of palm oil, stating: “Palm oil is a very significant commodity for us. It contributes roughly 3% to our GDP, which is about $400 billion USD. Palm oil cultivation covers about 5.7 million hectares in Malaysia. Large companies employ around 1 million workers, while smallholders support about 450,000 households. This activity generates significant income and revenue for these communities.”
Belvinder Sron, CEO of the Malaysian Palm Oil Council (MPOC), highlighted the sector’s importance in meeting food security, with significant exports and a focus on refining and processing techniques. She said: “The flourishing industry, resulting from over 100 years of persistent effort and strategic planning, has been bolstered by good government policies, incentives, infrastructure, and regulatory frameworks. We have invested significantly in refining cultivation and processing techniques, increasing productivity and quality. Last year, we exported about 24 million tonnes of palm oil and products, valued at around $22 billion USD, highlighting the sector’s importance in meeting food security.” The Print India
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Palm oil: From environmental villain to climate hero
The Malaysian palm oil industry is making notable progress in addressing climate change and sustainability issues
Malaysia is the world's second-largest producer of palm oil after Indonesia, with an annual output of about 19 million tonnes.
However, this thriving industry produces substantial amounts of waste.
Each tonne of crude palm oil produced generates approximately 4 tonnes of dry palm biomass and 3.5 tonnes of palm oil mill effluent.
At palm oil mills, the oil extraction process generates palm biomass, including empty fruit bunches, mesocarp fibres and palm kernel shells, as well as palm oil mill effluent.
Another major source of palm biomass is the plantation, where oil palm trunks and fronds can be found in abundance.
Energy potential
Palm biomass and waste products have an incredible potential to be converted into renewable palm bioenergy. This energy could be used to help Malaysia reduce its reliance on fossil fuels.
Palm biomass from palm oil mills alone has an estimated energy potential of about 5,000 megawatts (MW) — enough energy to replace almost 40 percent of Malaysia's yearly dependence on coal (based on 2021 data).
Biogas generated from palm oil mill effluent has an estimated energy potential of 540 megawatts, which is equivalent to 1.4 per cent of Malaysia's installed capacity mix (based on 2021 data).
Indeed, the prospect of palm bioenergy is promising as a means to help Malaysia transition to a low-carbon and circular economy. Palm bioenergy could also support Malaysia's goals of achieving 70 per cent renewable energy and net-zero emissions by 2050.
Despite intensifying efforts to utilise these wastes in the energy sector, most of them remain relatively untapped due to several technical challenges.
Technical challenges
Compared to woody biomass, palm biomass has relatively higher impurity contents such as ash and moisture that can affect the combustion process and efficiency. Innovations in pre-treatment technologies are needed to improve the suitability of palm biomass as boiler fuels. Down to earth
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August 08, 2024
Indonesia, EU reconcile forest data ahead of new rules on deforestation-free trade
JAKARTA — The Indonesian government is working on improving and synchronizing its forest and supply chain data to comply with increasingly strict sustainability standards and requirements in markets where it exports to, including the European Union.
Earlier this year, the Indonesian government discovered discrepancies between the forest map and data that it uses, and those used by the EU as a reference for the implementation of the European Union Deforestation Regulation (EUDR).
The EUDR bans imports of seven forest-related commodities — soy, palm oil, coffee, cocoa, timber, rubber and beef — associated with deforestation and illegality. It requires producers and companies trading these commodities into the EU to provide detailed evidence proving they weren’t produced from land deforested since 2020. The new regulations give producers and companies until Dec. 30, 2024, to fully comply.
To implement the EUDR, the EU is using forest data published on its Forest Observatory platform, which monitors changes in the world’s forest cover and related divers.
Meanwhile, the Indonesian government has its own forest monitoring system called SIMONTANA. It also has its own definition and classification of forest and deforestation.
When comparing the EU Forest Observatory maps and the maps in SIMONTANA, the government found discrepancies, with the EU overestimating Indonesia’s forest cover. The government found that some shrublands and farmland, like oil palm plantations and coffee estates, had been categorized as forest cover by the EU. More Mongabay
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EPA Probes Biodiesel Supply Chains as Fraud Concerns Mount
(Bloomberg) -- The Biden administration is following the paper trails of some biodiesel producers amid heightened concern the fuels are at times being made with deceptive ingredients that violate federal law.
The action by the Environmental Protection Agency comes as farm groups and a growing number of lawmakers press the government to address worries that used cooking oil, or UCO — a valuable ingredient for making renewable fuels - could be be fraudulent.
The audits seek to track the source of UCO, with at least two probes nearing completion and others expected to start soon, according to people familiar with the matter. Reuters earlier reported the EPA probes.
The probes, reported earlier by Reuters, follow a wave of UCO coming from China and beyond that is flooding the US market and undercutting producers of American-grown feedstocks, such as soy or corn oil. The scrutiny is tied to EPA policy dating back at least two years, with the agency long planning audits of company records tracking their collection of used cooking oil from various sources.
An EPA spokesperson described the inspections as part of “routine evaluation of compliance” with US biofuel policy. BNN Bloomberg
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CIRAD presents its roadmap for sustainable oil palm growing
CIRAD has produced a ten-year roadmap aimed at promoting more sustainable oil palm growing by focusing on restoring landscapes, preserving biodiversity, and helping farmers switch to more sustainable practices.
Oil palm originated in the Gulf of Guinea, and has been grown there for thousands of years. In 2022, some 79 Mt of palm oil were produced, primarily by Indonesia and Malaysia, and mainly consumed in Indonesia, India, the European Union and China.
Oil palm accounts for 36% of the vegetable oils and fats produced worldwide, yet occupies less than 10% of the area planted with oil crops. Despite its exceptional potential yields across the intertropical zone, the value chain faces a range of ecological challenges, centring on deforestation and biodiversity, and social issues such as non-respect of workers’ rights, and land grabbing.
To address the above challenges, CIRAD has produced a ten-year roadmap to help farmers and industrial plantations along the road to more sustainable production operations. The summary of that roadmap hinges on four main ambitions that guide CIRAD's operations: More CIRAD
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Elderly Indonesian arrested for burning farm wastes
JAMBI - The Tanjung Jabung Barat Resort Police (Polres Tanjabbar), Jambi, named BS (69), a resident of
Telogo Sari Village, Central Java, as a suspect in the burning of land in Muara Danau Village, Renah District, Mendalu. "The suspect was arrested by the team on Friday, August 2, 2024, at 14.00 WIB along with evidence of one match, two machetes, a fruit with gasoline, two pieces of wood that caught fire and four staples of palm oil," said Tanjabbar Police Chief AKBP Agung Basuki in Jambi, Antara, Wednesday, August 7. Agung said that the suspect went to Jambi to look for a job because he was currently living alone. In 2023, BS met RN in North Sumatra (North Sumatra) who offered a job to BS. BS was offered a job cleaning up RN's land covering an area of approximately 4 hectares located in the forest area of Muara Danau Village to be planted with palm oil. At that time, RN promised to distribute 2 hectares of land to BS if its palm oil plants were successful. BS carried out land clearing using a fallen slash method, the result of the fallen slash was burned and then planted palm oil. The police initially received a report from the BMKG Fire Monitoring Station, Thursday, August 1, 2024, with the Latitude hotspot point: -1,2479/Longitude 102,7886 at around 01.20 WIB. On Friday (2/8), the team went down to the location and arrested the suspect at around 14.00 WIB along with evidence. The police chief emphasized that the alleged perpetrator was charged with Article 22 number 24 Paragraph (1) letter h of Law Number 2023 concerning the stipulation of PERPPU Number 2 of 2022 concerning job creation into law on amendments to the provisions of Article 108 in conjunction with Article 69 paragraph (1) letter h of Law Number 32 of 2009 concerning environmental protection and management or Article 188 of the Criminal Code. Voice of Indonesia
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Ghanaian Entrepreneurs exporting Ghana’s agricultural produce to Europe and beyond
hree Ghanaian entrepreneurs are taking advantage of the country’s agricultural potential by exporting commodities, such as shea butter and palm oil, to international markets.
1. There’s global demand for Ghana’s shea nuts: This CEO saw an opportunity
Dora Torwiseh, a Ghanaian entrepreneur and CEO of the oilseed processing company Nuts for Growth, has tapped into the growing demand for shea nuts. The global market for shea butter, extracted from these nuts, is expected to surpass $3.5 billion by 2028, driven by its popularity in personal care products like lotions and moisturisers, as well as in food items such as chocolates and ice cream. Torwiseh left her corporate career to boost the shea nut industry in northern Ghana.
In this region, shea trees grow mostly in the wild, and the nuts are harvested by women who gather them from the ground. The local shea nut sector faced challenges, particularly the absence of large-scale aggregation among nut collectors, which discouraged international buyers looking for bulk purchases. To tackle this issue, Torwiseh began organising local shea nut pickers into a cohesive network.
Having structured this network, Torwiseh then turned her attention to securing markets for the shea nuts. Her persistence paid off when she attracted a Dutch buyer, now part of the US-based agribusiness giant Bunge, which remains a key client of Nuts for Growth. Today, Nuts for Growth links over 80,000 women with global buyers, including other major clients such as the American commodities giant Cargill. Read the full interview
2. Growing from a small palm oil exporter into a sizeable food business
Felicia Twumasi founded Homefoods in 1995 with a focus on exporting red palm oil. The company quickly gained significant market share through a UK partner and has since expanded its offerings to include a variety of spices, seasonings, sauces, and local Ghanaian favourites like gari. How We Made it in Africa
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Indonesia, EU reconcile forest data ahead of new rules on deforestation-free trade
JAKARTA — The Indonesian government is working on improving and synchronizing its forest and supply chain data to comply with increasingly strict sustainability standards and requirements in markets where it exports to, including the European Union.
Earlier this year, the Indonesian government discovered discrepancies between the forest map and data that it uses, and those used by the EU as a reference for the implementation of the European Union Deforestation Regulation (EUDR).
The EUDR bans imports of seven forest-related commodities — soy, palm oil, coffee, cocoa, timber, rubber and beef — associated with deforestation and illegality. It requires producers and companies trading these commodities into the EU to provide detailed evidence proving they weren’t produced from land deforested since 2020. The new regulations give producers and companies until Dec. 30, 2024, to fully comply.
To implement the EUDR, the EU is using forest data published on its Forest Observatory platform, which monitors changes in the world’s forest cover and related divers.
Meanwhile, the Indonesian government has its own forest monitoring system called SIMONTANA. It also has its own definition and classification of forest and deforestation.
When comparing the EU Forest Observatory maps and the maps in SIMONTANA, the government found discrepancies, with the EU overestimating Indonesia’s forest cover. The government found that some shrublands and farmland, like oil palm plantations and coffee estates, had been categorized as forest cover by the EU. More Mongabay
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EPA Probes Biodiesel Supply Chains as Fraud Concerns Mount
(Bloomberg) -- The Biden administration is following the paper trails of some biodiesel producers amid heightened concern the fuels are at times being made with deceptive ingredients that violate federal law.
The action by the Environmental Protection Agency comes as farm groups and a growing number of lawmakers press the government to address worries that used cooking oil, or UCO — a valuable ingredient for making renewable fuels - could be be fraudulent.
The audits seek to track the source of UCO, with at least two probes nearing completion and others expected to start soon, according to people familiar with the matter. Reuters earlier reported the EPA probes.
The probes, reported earlier by Reuters, follow a wave of UCO coming from China and beyond that is flooding the US market and undercutting producers of American-grown feedstocks, such as soy or corn oil. The scrutiny is tied to EPA policy dating back at least two years, with the agency long planning audits of company records tracking their collection of used cooking oil from various sources.
An EPA spokesperson described the inspections as part of “routine evaluation of compliance” with US biofuel policy. BNN Bloomberg
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CIRAD presents its roadmap for sustainable oil palm growing
CIRAD has produced a ten-year roadmap aimed at promoting more sustainable oil palm growing by focusing on restoring landscapes, preserving biodiversity, and helping farmers switch to more sustainable practices.
Oil palm originated in the Gulf of Guinea, and has been grown there for thousands of years. In 2022, some 79 Mt of palm oil were produced, primarily by Indonesia and Malaysia, and mainly consumed in Indonesia, India, the European Union and China.
Oil palm accounts for 36% of the vegetable oils and fats produced worldwide, yet occupies less than 10% of the area planted with oil crops. Despite its exceptional potential yields across the intertropical zone, the value chain faces a range of ecological challenges, centring on deforestation and biodiversity, and social issues such as non-respect of workers’ rights, and land grabbing.
To address the above challenges, CIRAD has produced a ten-year roadmap to help farmers and industrial plantations along the road to more sustainable production operations. The summary of that roadmap hinges on four main ambitions that guide CIRAD's operations: More CIRAD
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Elderly Indonesian arrested for burning farm wastes
JAMBI - The Tanjung Jabung Barat Resort Police (Polres Tanjabbar), Jambi, named BS (69), a resident of
Telogo Sari Village, Central Java, as a suspect in the burning of land in Muara Danau Village, Renah District, Mendalu. "The suspect was arrested by the team on Friday, August 2, 2024, at 14.00 WIB along with evidence of one match, two machetes, a fruit with gasoline, two pieces of wood that caught fire and four staples of palm oil," said Tanjabbar Police Chief AKBP Agung Basuki in Jambi, Antara, Wednesday, August 7. Agung said that the suspect went to Jambi to look for a job because he was currently living alone. In 2023, BS met RN in North Sumatra (North Sumatra) who offered a job to BS. BS was offered a job cleaning up RN's land covering an area of approximately 4 hectares located in the forest area of Muara Danau Village to be planted with palm oil. At that time, RN promised to distribute 2 hectares of land to BS if its palm oil plants were successful. BS carried out land clearing using a fallen slash method, the result of the fallen slash was burned and then planted palm oil. The police initially received a report from the BMKG Fire Monitoring Station, Thursday, August 1, 2024, with the Latitude hotspot point: -1,2479/Longitude 102,7886 at around 01.20 WIB. On Friday (2/8), the team went down to the location and arrested the suspect at around 14.00 WIB along with evidence. The police chief emphasized that the alleged perpetrator was charged with Article 22 number 24 Paragraph (1) letter h of Law Number 2023 concerning the stipulation of PERPPU Number 2 of 2022 concerning job creation into law on amendments to the provisions of Article 108 in conjunction with Article 69 paragraph (1) letter h of Law Number 32 of 2009 concerning environmental protection and management or Article 188 of the Criminal Code. Voice of Indonesia
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Ghanaian Entrepreneurs exporting Ghana’s agricultural produce to Europe and beyond
hree Ghanaian entrepreneurs are taking advantage of the country’s agricultural potential by exporting commodities, such as shea butter and palm oil, to international markets.
1. There’s global demand for Ghana’s shea nuts: This CEO saw an opportunity
Dora Torwiseh, a Ghanaian entrepreneur and CEO of the oilseed processing company Nuts for Growth, has tapped into the growing demand for shea nuts. The global market for shea butter, extracted from these nuts, is expected to surpass $3.5 billion by 2028, driven by its popularity in personal care products like lotions and moisturisers, as well as in food items such as chocolates and ice cream. Torwiseh left her corporate career to boost the shea nut industry in northern Ghana.
In this region, shea trees grow mostly in the wild, and the nuts are harvested by women who gather them from the ground. The local shea nut sector faced challenges, particularly the absence of large-scale aggregation among nut collectors, which discouraged international buyers looking for bulk purchases. To tackle this issue, Torwiseh began organising local shea nut pickers into a cohesive network.
Having structured this network, Torwiseh then turned her attention to securing markets for the shea nuts. Her persistence paid off when she attracted a Dutch buyer, now part of the US-based agribusiness giant Bunge, which remains a key client of Nuts for Growth. Today, Nuts for Growth links over 80,000 women with global buyers, including other major clients such as the American commodities giant Cargill. Read the full interview
2. Growing from a small palm oil exporter into a sizeable food business
Felicia Twumasi founded Homefoods in 1995 with a focus on exporting red palm oil. The company quickly gained significant market share through a UK partner and has since expanded its offerings to include a variety of spices, seasonings, sauces, and local Ghanaian favourites like gari. How We Made it in Africa
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August 07, 2024
Exclusive: US EPA says it is auditing biofuel producers' used cooking oil supply
By Leah Douglas
Aug 7 (Reuters) - The U.S. Environmental Protection Agency has launched investigations into the supply chains of at least two renewable fuel producers amid industry concerns that some may be using fraudulent feedstocks for biodiesel to secure lucrative government subsidies.
EPA spokesperson Jeffrey Landis told Reuters that the agency has launched audits over the past year, but declined to identify the companies targeted because the investigations are ongoing.
The production of biodiesel from sustainable ingredients, like used cooking oil, can earn refiners a slew of state and federal environmental and climate subsidies, including tradable credits under a program administered by the EPA called the Renewable Fuel Standard. But fears have been mounting that some supplies labeled as used cooking oil are actually cheaper and less sustainable virgin palm oil, a product that is associated with deforestation and other environmental damage.
The issue came into focus following a surge in used cooking oil exports from Asia in recent years that analysts have said involves unrealistically high volumes relative to the amount of cooking oil used and recovered in the region. The European Union is also investigating feedstocks over the fraud concerns.
The EPA audits began after the agency updated domestic supply-chain accounting requirements in July 2023 for renewable fuel producers seeking to earn credits under the RFS, he said.
"EPA has conducted audits of renewable fuel producers since July 2023 which includes, among other things, an evaluation of the locations that used cooking oil used in renewable fuel production was collected," he said. "These investigations, however, are ongoing and we are not able to discuss ongoing enforcement investigations."
U.S. senators from farm states have called for more oversight of biofuel feedstocks, saying federal agencies should be as rigorous in verifying imports as they are auditing domestic supply chains.
"The Biden administration has created vigorous standards to verify, not just trust, American producers, and it is imperative that the same scrutiny is applied to imported feedstocks," six U.S. senators, led by Roger Marshall and Sherrod Brown, wrote in a June 20 letter to federal agencies.
Another letter from 15 senators to the Treasury Department on July 30 urged the administration to exclude imported feedstocks like UCO from an additional clean fuel tax credit program passed in the Inflation Reduction Act. Reuters
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Palm oil biofuels could make rice more affordable for consumers in Philippines
In his third State of the Nation Address, President Ferdinand Marcos Jr. reaffirmed his commitment to making food affordable for every Filipino, particularly focusing on reducing the price of rice, which currently ranges from PhP45 to P65 per kilogram.
To address this challenge, innovative solutions are being proposed to lower rice production costs, one of which is the use of biofuel in powering rice production processes.
On the morning of the SONA, Jose Vidal, a farmer group leader from Occidental Mindoro, made a critical plea to President Marcos, emphasizing the need for government intervention to enable local farmers to produce rice competitively, especially against imported varieties that benefit from lower tariffs.
Vidal specifically requested support in reducing production costs — a challenge that biofuel, an economical and environmental alternative energy source could help address given the high cost of electricity and diesel fuel used in harvesting machinery and rice millers.
Currently, the biofuels mandate in the local energy sector implements a 3% coco methyl ester (CME) blend in all diesel fuel sold nationwide.
The Department of Energy has noted potential net savings of PhP4.17 per liter of diesel with a higher CME blend of 5%, corresponding to a 10% increase in mileage for vehicles using biodiesel including farm vehicles.
These savings could be even greater with the use of crude palm oil, which costs lower than crude coconut oil, at PhP51 versus PhP81, respectively.
In Indonesia, the world’s largest producer of palm oil, the biodiesel blending mandate for palm methyl ester (PME) set at 35%.
Palm oil, a versatile commodity, finds applications across various industries. It is a key ingredient in food products, personal care items, and numerous other by-products.
Beyond these uses, palm oil’s potential as a biofuel is particularly noteworthy. The advantages of using palm oil biofuels in rice production are multifaceted.
Firstly, biofuels are renewable and have an abundant global supply, reducing dependency on fossil fuels and stabilizing energy costs.
Secondly, the use of biofuels can lower greenhouse gas emissions, contributing to more sustainable agricultural practices.
By strategically leveraging palm oil-integrated biofuels, the agricultural sector gains an economical alternative to fossil fuel diesel. The process of converting palm oil into biofuel involves refining the crude oil into biodiesel, which can then be used to power various types of machinery.
For rice production, this means that biofuels can operate rice plantations, milling processes, and essential farm vehicles such as harvesters and tractors. By replacing expensive fossil fuels with more affordable biofuels, farmers can significantly reduce their operational costs.
The promise of palm oil biofuels in reducing rice production costs is clear. With government support and innovative approaches, the Philippines can create a more sustainable agricultural sector, and pave the way for a more affordable and competitive rice market, benefiting the economy, farmers and consumers alike. Manila Standard
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Indonesian Palm Fronds See Huge Potential in Global Market
Jakarta. Household goods made from nipa and palm fronds are seeing huge potential in the global market, according to the Indonesian Export Financing Agency (LPEI).
Exports of Indonesian palm and nipa palm fronds saw an 11.44 percent year-on-year (yoy) rise, reaching $29.32 million in 2023. The export volume also reached around 70,000 tons, up by 15.97 percent yoy. The fronds are commonly used for broomsticks, but they can also make handicraft goods such as plates, baskets, tissue boxes, and vases. Palm and nipah fronds export in January-June 2024 hit $ 10.18 million, down 27.59 percent y-o-y, while export destinations like China and India saw a decline, there are still opportunities in other countries.
"Looking at the realization of export value in the first half of 2024, the export value shows a decline until the end of 2024, especially to India, Japan, and China. The era of high interest rates weakens the global property sector and reduces demand for furniture and home decor products, consumers tend to choose essential products. However, there are export opportunities to countries with increasing demand such as Pakistan, the Philippines, Vietnam, South Korea, and Iran,” LPEI’s senior economist Donda Sarah Hutabarat was quoted as saying in a recent press statement.
CV Kahaka Internasional is among the Indonesian companies which are exporting palm ekel and nipa broomsticks. Kahaka Internasional took part in LPEI’s new exporters coaching program in 2020. This mentoring program helped Rianto export its goods to seven countries, namely Pakistan, India, Nepal, Vietnam, Singapore, and Bangladesh. His company used LPEI’s export working capital credit. Since 2020, Kahaka Internasional has exported 8,500 metric tons of palm fronds or 622 containers with an export value of $3.5 million as of June 2024. More Jakarta Globe
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Asia Pacific Poised to Contribute 500 Million Tonnes of Sustainable Aviation Fuel (SAF) to Global Demand by 2050
Two years after Malaysia Airlines’ inaugural passenger flight utilising sustainable aviation fuel (SAF) from Kuala Lumpur to Singapore, Bioeconomy Corporation hosted a stakeholder forum to discuss the progress and development of the SAF industry in Malaysia. The key objective of the forum was to address the Government’s policies, market outlook, progress, and innovative solutions in the SAF industry.
It was estimated that Malaysia used around 8,900 metric tonnes of jet fuel per day at the peak in 2019. The usage of jet fuel is expected to exceed these figures, as the Malaysian Aviation Commission (MAVCOM) projects that aviation passenger numbers will exceed 100 million in 2024. Currently, SAF production relies on used cooking oil as the raw material, and there is increasing interest in using waste residues or biomass from the palm oil industry. The National Biomass Action Plan (NBAP) 2023 outlines the potential for utilising 164 million metric tonnes of biomass produced annually from the industry as raw material for SAF production.
“The Association of Asia Pacific Airlines states that the region has the capability to produce up to 500 million tonnes of SAF by 2050. Therefore, we need to accelerate actions and innovations in the SAF industry for Malaysia to fully leverage its biomass potential and technological advancements. MOSTI, through Bioeconomy Corporation, will continue to facilitate and pursue both local and international collaborations to maximise Malaysia’s position as a SAF provider in the region,” said YBhg. Datuk Ts. Dr. Mohd Nor Azman Hassan, Deputy Secretary General of the Ministry of Science, Technology and Innovation (MOSTI), during the opening of the forum.
Dato’ Leong Kin Mun, President of Malaysia Biomass Industries Confederation, highlighted, “The development of SAF in Malaysia offers a significant opportunity to utilise the country’s abundant oil palm biomass, crude palm oil (CPO), and sludge palm oil, all recognised as CORSIA-eligible fuels. Annually, Malaysia generates approximately 95 million dry tonnes of solid palm biomass, 18 million tonnes of CPO, and sludge palm oil. These feedstocks can be developed through technology pathways such as Gasification Fischer-Tropsch (GFT), Hydroprocessed Esters & Fatty Acid (HEFA), and Alcohol-to-Jet (ATJ), among others. A comprehensive economic study should be conducted to assess the sustainability criteria, commercial availability, and technology readiness of these pathways.”
As of July 2022, Malaysia has voluntarily participated in Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) alongside 104 other countries and has targeted the aviation industry amongst its strategy to meet its carbon neutral targets. Prof. Ts. Shamsul Kamar Abu Samah, Chief Executive Officer of the National Aerospace Industry Corporation (NAICO) shared, “SAF advancement and production is an important component for the overall aerospace ecosystem. The Government has set in place a holistic approach through the Malaysian Aerospace Industry Blueprint 2030 to position Malaysia as a sustainable aerospace hub in Southeast Asia.”
“For a more sustainable aerospace future, it is imperative to scale SAF as it reduces lifecycle carbon emissions up to 84% compared to conventional jet fuel, offering the largest potential to decarbonise in all aviation segments. Boeing is committed to ensuring our commercial airplanes are 100% SAF-compatible by 2030 and analysing opportunities to scale local SAF production in Southeast Asia through feedstock assessments,” said Sharmine Tan, Regional Sustainability Lead, Southeast Asia, Boeing.
In May 2024, global energy company Petroliam Nasional Berhad (PETRONAS) through its subsidiary, Petronas Dagangan Berhad, signed a Memorandum of Understanding (MoU) with Malaysian Aviation Group (MAG) to supply more than 230,000 metric tonnes of SAF to the national carrier beginning 2027. Present at the forum, Pn. Norhayati Hashim, Chief Executive Officer of PETRONAS Research Sdn Bhd said, “PETRONAS is committed towards advancing our bio-based technology research, concentrating on the availability and readiness of feedstock for SAF. By demonstrating our collective strengths as industry players, collaboration will be key to achieving PETRONAS’ Net Zero Carbon Emissions by 2050 (NZCE2050) aspiration.” More Business Insider
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China joins the US to oppose EU regulation to track deforestation
In a recent development, China has opposed the European Union’s landmark regulation to prevent deforestation-linked commodities from entering the EU market. This update comes from GD Holz, the German timber trade association.
The EU Deforestation Regulation (EUDR) is designed to ensure that forest-related products that are sold in the EU market are deforestation-free. That is, producers and companies must ensure that commodities like timber, beef, palm oil, soy, coffee, cocoa and rubber come from land that wasn’t deforested after Dec. 31, 2020. They must do this by sharing geolocation coordinates that show the exact location and size of the areas where the commodities are grown.
However, China has reportedly rejected compliance with the EUDR, specifically refusing to share geolocational data, over security concerns.
“China’s laws may indeed restrict the sharing of ‘sensitive’ geolocation data with other governments. But what is deemed to be ‘sensitive’ is nebulous and ill-defined,” Julian Oram, senior policy director at Mighty Earth, a climate advocacy group, told Mongabay in an email. “Given that China supplies the EU with nearly half its timber furniture and more than 40% of all paper boxes, it would clearly be in the interests of both sides to resolve this impasse swiftly.”
Much of China’s timber comes from tropical forests, such as those in the Congo Basin. The timber gets crafted into furniture and other products in Chinese factories, which is then exported to both the EU and the U.S. The Congo Basin has the world’s second-largest expanse of rainforest after the Amazon, and is one of the largest carbon sinks in the world. But the region suffers from illegal logging and deforestation, previous investigations have found.
The EUDR was passed with strong backing from companies and NGOs. However, international political opposition has emerged against the implementation of the regulation, which is set to take effect starting Dec. 30, 2024.
China now joins the U.S. in opposing the EUDR’s traceability requirements. In March of this year, 27 U.S. senators said meeting the EUDR’s geolocation requirement would be “nearly impossible” and could limit the $3.5 billion forest product trade between the U.S. and Europe. Twenty out of 27 EU agriculture ministers, as well as countries like Australia, New Zealand, Brazil, Indonesia and Malaysia, have also expressed concern about the regulation. More Mongabay
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Benue govt donates 10,000 oil palm seedlings to empower youth futures
As part of his administration’s programme to empower the youths economically, the Benue State Government has distributed 10,000 stands of hybrid oil palm seedlings to youths of the state.
The programme is done under Governor Hyacinth Alia’s Youth Palm Legacy Project, a project establish to support the youth establish themselves economically.
Speaking in Makurdi during the flag-off of the distribution of the seedlings to youths from the three Senatorial Zones of the state, a chieftain of the APC, Senator Barnabas Gemade commended Governor Hyacinth Alia for his foresight emphasizing that palm tree cultivation had become a big source of income around the world.
Gemade who was represented by the state Commissioner for Sports and Creativity, Mr. Terkimbi Ikyange, noted the importance of the intervention describing it as a “legacy project.”
According to him, “It takes a person with foresight like Governor Hyacinth Alia to initiate this kind of project which will in three years turn the beneficiaries to millionaires given the income that they would generate when the trees start producing.
“It is indeed a legacy project because the beneficiaries will be raking good money from the fruits even after the Governor has served out his term.” The SunNG
Exclusive: US EPA says it is auditing biofuel producers' used cooking oil supply
By Leah Douglas
Aug 7 (Reuters) - The U.S. Environmental Protection Agency has launched investigations into the supply chains of at least two renewable fuel producers amid industry concerns that some may be using fraudulent feedstocks for biodiesel to secure lucrative government subsidies.
EPA spokesperson Jeffrey Landis told Reuters that the agency has launched audits over the past year, but declined to identify the companies targeted because the investigations are ongoing.
The production of biodiesel from sustainable ingredients, like used cooking oil, can earn refiners a slew of state and federal environmental and climate subsidies, including tradable credits under a program administered by the EPA called the Renewable Fuel Standard. But fears have been mounting that some supplies labeled as used cooking oil are actually cheaper and less sustainable virgin palm oil, a product that is associated with deforestation and other environmental damage.
The issue came into focus following a surge in used cooking oil exports from Asia in recent years that analysts have said involves unrealistically high volumes relative to the amount of cooking oil used and recovered in the region. The European Union is also investigating feedstocks over the fraud concerns.
The EPA audits began after the agency updated domestic supply-chain accounting requirements in July 2023 for renewable fuel producers seeking to earn credits under the RFS, he said.
"EPA has conducted audits of renewable fuel producers since July 2023 which includes, among other things, an evaluation of the locations that used cooking oil used in renewable fuel production was collected," he said. "These investigations, however, are ongoing and we are not able to discuss ongoing enforcement investigations."
U.S. senators from farm states have called for more oversight of biofuel feedstocks, saying federal agencies should be as rigorous in verifying imports as they are auditing domestic supply chains.
"The Biden administration has created vigorous standards to verify, not just trust, American producers, and it is imperative that the same scrutiny is applied to imported feedstocks," six U.S. senators, led by Roger Marshall and Sherrod Brown, wrote in a June 20 letter to federal agencies.
Another letter from 15 senators to the Treasury Department on July 30 urged the administration to exclude imported feedstocks like UCO from an additional clean fuel tax credit program passed in the Inflation Reduction Act. Reuters
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Palm oil biofuels could make rice more affordable for consumers in Philippines
In his third State of the Nation Address, President Ferdinand Marcos Jr. reaffirmed his commitment to making food affordable for every Filipino, particularly focusing on reducing the price of rice, which currently ranges from PhP45 to P65 per kilogram.
To address this challenge, innovative solutions are being proposed to lower rice production costs, one of which is the use of biofuel in powering rice production processes.
On the morning of the SONA, Jose Vidal, a farmer group leader from Occidental Mindoro, made a critical plea to President Marcos, emphasizing the need for government intervention to enable local farmers to produce rice competitively, especially against imported varieties that benefit from lower tariffs.
Vidal specifically requested support in reducing production costs — a challenge that biofuel, an economical and environmental alternative energy source could help address given the high cost of electricity and diesel fuel used in harvesting machinery and rice millers.
Currently, the biofuels mandate in the local energy sector implements a 3% coco methyl ester (CME) blend in all diesel fuel sold nationwide.
The Department of Energy has noted potential net savings of PhP4.17 per liter of diesel with a higher CME blend of 5%, corresponding to a 10% increase in mileage for vehicles using biodiesel including farm vehicles.
These savings could be even greater with the use of crude palm oil, which costs lower than crude coconut oil, at PhP51 versus PhP81, respectively.
In Indonesia, the world’s largest producer of palm oil, the biodiesel blending mandate for palm methyl ester (PME) set at 35%.
Palm oil, a versatile commodity, finds applications across various industries. It is a key ingredient in food products, personal care items, and numerous other by-products.
Beyond these uses, palm oil’s potential as a biofuel is particularly noteworthy. The advantages of using palm oil biofuels in rice production are multifaceted.
Firstly, biofuels are renewable and have an abundant global supply, reducing dependency on fossil fuels and stabilizing energy costs.
Secondly, the use of biofuels can lower greenhouse gas emissions, contributing to more sustainable agricultural practices.
By strategically leveraging palm oil-integrated biofuels, the agricultural sector gains an economical alternative to fossil fuel diesel. The process of converting palm oil into biofuel involves refining the crude oil into biodiesel, which can then be used to power various types of machinery.
For rice production, this means that biofuels can operate rice plantations, milling processes, and essential farm vehicles such as harvesters and tractors. By replacing expensive fossil fuels with more affordable biofuels, farmers can significantly reduce their operational costs.
The promise of palm oil biofuels in reducing rice production costs is clear. With government support and innovative approaches, the Philippines can create a more sustainable agricultural sector, and pave the way for a more affordable and competitive rice market, benefiting the economy, farmers and consumers alike. Manila Standard
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Indonesian Palm Fronds See Huge Potential in Global Market
Jakarta. Household goods made from nipa and palm fronds are seeing huge potential in the global market, according to the Indonesian Export Financing Agency (LPEI).
Exports of Indonesian palm and nipa palm fronds saw an 11.44 percent year-on-year (yoy) rise, reaching $29.32 million in 2023. The export volume also reached around 70,000 tons, up by 15.97 percent yoy. The fronds are commonly used for broomsticks, but they can also make handicraft goods such as plates, baskets, tissue boxes, and vases. Palm and nipah fronds export in January-June 2024 hit $ 10.18 million, down 27.59 percent y-o-y, while export destinations like China and India saw a decline, there are still opportunities in other countries.
"Looking at the realization of export value in the first half of 2024, the export value shows a decline until the end of 2024, especially to India, Japan, and China. The era of high interest rates weakens the global property sector and reduces demand for furniture and home decor products, consumers tend to choose essential products. However, there are export opportunities to countries with increasing demand such as Pakistan, the Philippines, Vietnam, South Korea, and Iran,” LPEI’s senior economist Donda Sarah Hutabarat was quoted as saying in a recent press statement.
CV Kahaka Internasional is among the Indonesian companies which are exporting palm ekel and nipa broomsticks. Kahaka Internasional took part in LPEI’s new exporters coaching program in 2020. This mentoring program helped Rianto export its goods to seven countries, namely Pakistan, India, Nepal, Vietnam, Singapore, and Bangladesh. His company used LPEI’s export working capital credit. Since 2020, Kahaka Internasional has exported 8,500 metric tons of palm fronds or 622 containers with an export value of $3.5 million as of June 2024. More Jakarta Globe
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Asia Pacific Poised to Contribute 500 Million Tonnes of Sustainable Aviation Fuel (SAF) to Global Demand by 2050
Two years after Malaysia Airlines’ inaugural passenger flight utilising sustainable aviation fuel (SAF) from Kuala Lumpur to Singapore, Bioeconomy Corporation hosted a stakeholder forum to discuss the progress and development of the SAF industry in Malaysia. The key objective of the forum was to address the Government’s policies, market outlook, progress, and innovative solutions in the SAF industry.
It was estimated that Malaysia used around 8,900 metric tonnes of jet fuel per day at the peak in 2019. The usage of jet fuel is expected to exceed these figures, as the Malaysian Aviation Commission (MAVCOM) projects that aviation passenger numbers will exceed 100 million in 2024. Currently, SAF production relies on used cooking oil as the raw material, and there is increasing interest in using waste residues or biomass from the palm oil industry. The National Biomass Action Plan (NBAP) 2023 outlines the potential for utilising 164 million metric tonnes of biomass produced annually from the industry as raw material for SAF production.
“The Association of Asia Pacific Airlines states that the region has the capability to produce up to 500 million tonnes of SAF by 2050. Therefore, we need to accelerate actions and innovations in the SAF industry for Malaysia to fully leverage its biomass potential and technological advancements. MOSTI, through Bioeconomy Corporation, will continue to facilitate and pursue both local and international collaborations to maximise Malaysia’s position as a SAF provider in the region,” said YBhg. Datuk Ts. Dr. Mohd Nor Azman Hassan, Deputy Secretary General of the Ministry of Science, Technology and Innovation (MOSTI), during the opening of the forum.
Dato’ Leong Kin Mun, President of Malaysia Biomass Industries Confederation, highlighted, “The development of SAF in Malaysia offers a significant opportunity to utilise the country’s abundant oil palm biomass, crude palm oil (CPO), and sludge palm oil, all recognised as CORSIA-eligible fuels. Annually, Malaysia generates approximately 95 million dry tonnes of solid palm biomass, 18 million tonnes of CPO, and sludge palm oil. These feedstocks can be developed through technology pathways such as Gasification Fischer-Tropsch (GFT), Hydroprocessed Esters & Fatty Acid (HEFA), and Alcohol-to-Jet (ATJ), among others. A comprehensive economic study should be conducted to assess the sustainability criteria, commercial availability, and technology readiness of these pathways.”
As of July 2022, Malaysia has voluntarily participated in Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) alongside 104 other countries and has targeted the aviation industry amongst its strategy to meet its carbon neutral targets. Prof. Ts. Shamsul Kamar Abu Samah, Chief Executive Officer of the National Aerospace Industry Corporation (NAICO) shared, “SAF advancement and production is an important component for the overall aerospace ecosystem. The Government has set in place a holistic approach through the Malaysian Aerospace Industry Blueprint 2030 to position Malaysia as a sustainable aerospace hub in Southeast Asia.”
“For a more sustainable aerospace future, it is imperative to scale SAF as it reduces lifecycle carbon emissions up to 84% compared to conventional jet fuel, offering the largest potential to decarbonise in all aviation segments. Boeing is committed to ensuring our commercial airplanes are 100% SAF-compatible by 2030 and analysing opportunities to scale local SAF production in Southeast Asia through feedstock assessments,” said Sharmine Tan, Regional Sustainability Lead, Southeast Asia, Boeing.
In May 2024, global energy company Petroliam Nasional Berhad (PETRONAS) through its subsidiary, Petronas Dagangan Berhad, signed a Memorandum of Understanding (MoU) with Malaysian Aviation Group (MAG) to supply more than 230,000 metric tonnes of SAF to the national carrier beginning 2027. Present at the forum, Pn. Norhayati Hashim, Chief Executive Officer of PETRONAS Research Sdn Bhd said, “PETRONAS is committed towards advancing our bio-based technology research, concentrating on the availability and readiness of feedstock for SAF. By demonstrating our collective strengths as industry players, collaboration will be key to achieving PETRONAS’ Net Zero Carbon Emissions by 2050 (NZCE2050) aspiration.” More Business Insider
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China joins the US to oppose EU regulation to track deforestation
In a recent development, China has opposed the European Union’s landmark regulation to prevent deforestation-linked commodities from entering the EU market. This update comes from GD Holz, the German timber trade association.
The EU Deforestation Regulation (EUDR) is designed to ensure that forest-related products that are sold in the EU market are deforestation-free. That is, producers and companies must ensure that commodities like timber, beef, palm oil, soy, coffee, cocoa and rubber come from land that wasn’t deforested after Dec. 31, 2020. They must do this by sharing geolocation coordinates that show the exact location and size of the areas where the commodities are grown.
However, China has reportedly rejected compliance with the EUDR, specifically refusing to share geolocational data, over security concerns.
“China’s laws may indeed restrict the sharing of ‘sensitive’ geolocation data with other governments. But what is deemed to be ‘sensitive’ is nebulous and ill-defined,” Julian Oram, senior policy director at Mighty Earth, a climate advocacy group, told Mongabay in an email. “Given that China supplies the EU with nearly half its timber furniture and more than 40% of all paper boxes, it would clearly be in the interests of both sides to resolve this impasse swiftly.”
Much of China’s timber comes from tropical forests, such as those in the Congo Basin. The timber gets crafted into furniture and other products in Chinese factories, which is then exported to both the EU and the U.S. The Congo Basin has the world’s second-largest expanse of rainforest after the Amazon, and is one of the largest carbon sinks in the world. But the region suffers from illegal logging and deforestation, previous investigations have found.
The EUDR was passed with strong backing from companies and NGOs. However, international political opposition has emerged against the implementation of the regulation, which is set to take effect starting Dec. 30, 2024.
China now joins the U.S. in opposing the EUDR’s traceability requirements. In March of this year, 27 U.S. senators said meeting the EUDR’s geolocation requirement would be “nearly impossible” and could limit the $3.5 billion forest product trade between the U.S. and Europe. Twenty out of 27 EU agriculture ministers, as well as countries like Australia, New Zealand, Brazil, Indonesia and Malaysia, have also expressed concern about the regulation. More Mongabay
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Benue govt donates 10,000 oil palm seedlings to empower youth futures
As part of his administration’s programme to empower the youths economically, the Benue State Government has distributed 10,000 stands of hybrid oil palm seedlings to youths of the state.
The programme is done under Governor Hyacinth Alia’s Youth Palm Legacy Project, a project establish to support the youth establish themselves economically.
Speaking in Makurdi during the flag-off of the distribution of the seedlings to youths from the three Senatorial Zones of the state, a chieftain of the APC, Senator Barnabas Gemade commended Governor Hyacinth Alia for his foresight emphasizing that palm tree cultivation had become a big source of income around the world.
Gemade who was represented by the state Commissioner for Sports and Creativity, Mr. Terkimbi Ikyange, noted the importance of the intervention describing it as a “legacy project.”
According to him, “It takes a person with foresight like Governor Hyacinth Alia to initiate this kind of project which will in three years turn the beneficiaries to millionaires given the income that they would generate when the trees start producing.
“It is indeed a legacy project because the beneficiaries will be raking good money from the fruits even after the Governor has served out his term.” The SunNG
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August 06, 2024
EU inches closer to trade deal with South America
The EU and the Mercosur group of five South American countries aim to conclude negotiations for a long-delayed trade deal before the end of the year after making progress towards resolving contentious issues.
Officials from both sides have told the Financial Times there is fresh impetus to tie up the agreement, which is two decades in the making, despite French objections.
“It’s a geopolitical and economic necessity,” said an EU diplomat.
Mercosur, which includes Brazil, Argentina, Uruguay, Paraguay and Bolivia, is a sought after destination for EU exporters.
The agreement would create a market of 780mn people and save businesses in Europe more than €4bn annually in tariffs, according to the European Commission. EU companies have €330bn of investments in five South American countries.
The talks were dealt a blow after French President Emmanuel Macron in January stepped up his opposition to the deal, saying it would cause environmental damage and subject farmers to unfair competition.
But France has so far been backed only by Austria, which is insufficient to block a deal that requires a majority of the bloc’s 27 governments to be approved.
EU officials say they are now prepared to face down French opposition and insist the deal includes a commitment to implement the Paris Agreement, which pledges to keep global warming below 1.5 degrees Celsius. FT
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Indonesia Eyes Used Cooking Oil Downstreaming for Biofuel
TEMPO.CO, Jakarta - The Coordinating Ministry for Maritime Affairs and Investment has endorsed a proposal to classify used cooking oil as a commodity, paving the way for its downstreaming into biofuel production in a bid to bolster Indonesia's biofuel reserves.
Sora Lokita, Assistant Deputy for Delimitation of Maritime Zones and Border Areas, emphasized the importance of this academic paper during the dissemination event at Pullman Hotel, Jakarta on Monday, August 5.
“This academic paper is a new milestone that has succeeded in summarizing the issues that require attention. And I am sure this needs to be disseminated to all stakeholders so that various parties understand its content,” said Sora.
He admitted that Indonesia exported a substantial amount of used cooking oil, which is detrimental to the domestic biofuel industry. The government seeks to establish a robust domestic downstreaming sector to meet local demand.
“The Coordinating Minister for Maritime Affairs and Investment is also preparing [policies on] downstreaming. It (exports) won't be closed 100 percent, but we’re working towards a win-win solution for all,” he said.
The academic paper, produced by Traction Energy Asia and the Climate for Environmental Law and Climate Justice (CELCJ) of the University of Indonesia, advocates for government regulation of used cooking oil management and trade. It highlights the commodity's potential to contribute to Indonesia's energy transition while preventing environmental pollution.
It also noted critical issues and underscored the need for stakeholder engagement.
The paper also warns of potential price inflation and greenflation if the industry is not properly regulated and if used cooking oil becomes a sought-after commodity for biofuel production. Tempo
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Indonesia to Run B40 Biodiesel in 2025, Energy Minister Says
TEMPO.CO, Jakarta - Minister of Energy and Mineral Resources Arifin Tasrif said the government will accelerate the implementation of B40 biodiesel, the 60 percent diesel and 40 percent palm-oil-based biofuel blend.
"We have started to apply B35 biodiesel this year and will hopefully start running B40 next year, there’s an agreement already,” said Arifin, quoted from an official statement on Monday, August 5, 2024.
According to Arifin, in the second quarter of 2024, the government has managed to achieve 6.2 million kilo liters, or 54.2 percent of the 11.3 million kiloliters annual target. Going forward, through the B40 program, the government will increase palm-oil-based biodiesel adoption in various types of vehicles.
He said that after B40 was tested in the automotive industry four years ago, the trial will focus on agricultural equipment and the railway industry.
"We’ll target mining and heavy equipment industries which will soon commence in Balikpapan, East Kalimantan,” he said. Overall, Arifin estimated 16 million kiloliters of B40 will be required.
In addition to B40, Arifin went on, the government is preparing a policy for bioethanol as a gasoline fuel mixture.
Arifin claimed that bioethanol produced from raw materials, such as sugar cane and cassava, has the potential to reduce carbon emissions and increase national energy security.
In addition to reducing carbon emissions, according to Arifin, increasing biodiesel consumption will positively influence the economy by creating new jobs. "Including reducing dependence on fossil fuel imports," he said. Tempo
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EU palm oil imports to the EU from Indonesia declined in the first month of MY 2024/25
According to the analytical agency SunSirs, the volume of palm oil imports to the EU declined in the first month of MY 2024/2025, mainly due to lower imports from Indonesia. The European Union purchased 53,000 tons of palm oil from Indonesia, down from last year’s 89,000 tons.
At the end of the first month of fiscal year 2024/2025, the European Union imported 59 thousand tons of palm oil from Malaysia, accounting for 40.3% of total EU imports and higher than the same period last year (57 thousand tons and 19.8% respectively).
The second largest supplier is Indonesia, whose share of imports from Indonesia increased from 31.1% to 35.9% in volume terms.
From 2024 to 2025, the EU exported 150 thousand tons of palm oil, which is 49% less than in the previous year. UK Agro Consult
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India aims to increase domestic palm oil production six fold
Target set for six-fold rise in palm oil output by 2032; current output 0.4 MT
Industry has projected the plantation to increase to 1 MH by 2029 from the current level of 0. 5 MH.
The country is aiming to increase domestic palm oil production from the current level of 0.4 million tonne (MT) to 2.5 MT by 2032 under the national oil palm mission through adding at least 0.1 million hectare (MH) of new plantation annually in the five to six years, according to leading industry officials.
Sougata Niyogi, head, Godrej Agrovet, palm oil division, which owns a third of total palm plantation in the country, told FE that domestic production of palm oil is likely to meet around 25% of the current annual imports of palm oil estimated at around 9.6 MT by 2032. Financial Express
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Presco’s N39bn profit in 6 months shows Nigeria’s untapped oil palm opportunities
… total revenue made in Nigerian markets
…. profitability of oil palm firms justifies investments in ESOPP
Presco Nigeria Plc, one of Nigeria’s biggest agro-allied firms, has set a new record as it recorded a huge profit after tax in the first six months of 2024. The company announced a profit after tax of N38.88 billion from January to June 2024, amounting to an increase of 158 percent over N15.08 billion profit made in the similar period of 2023.
The profitability of the oil palm firms that are based in Edo State, south-south Nigeria, shows the untapped enormous opportunities in the oil palm business. It also vindicates the Edo State Government that has invested and attracted huge investments into the state’s oil palm sub sector in the last six years through the Edo State Oil Palm Programme (ESOPP).
“To start with, you have to go for the value crops like oil palm, rubber, and cocoa. We started from that end because of the advantage we have in attracting investors. We did a forest audit and realized that we had quite a lot of land that, unfortunately, had been deforested, which we could use for oil palm cultivation.
“We then launched the Edo State Oil Palm Programme (ESOPP). It was not about just giving out land, but a programme where we help you get land, survey the land, demarcate, go to the communities, deal with the communities, engage them, compensate those who you need to compensate, then do your nurseries, and get planting materials. Today, we have the largest agricultural programme on the continent, with more than 70,000 hectares of oil palm plantation. There are 7 to 8 investors, and everybody is producing,” Godwin Obaseki, governor, Edo State said. More Nigerian Observer
EU inches closer to trade deal with South America
The EU and the Mercosur group of five South American countries aim to conclude negotiations for a long-delayed trade deal before the end of the year after making progress towards resolving contentious issues.
Officials from both sides have told the Financial Times there is fresh impetus to tie up the agreement, which is two decades in the making, despite French objections.
“It’s a geopolitical and economic necessity,” said an EU diplomat.
Mercosur, which includes Brazil, Argentina, Uruguay, Paraguay and Bolivia, is a sought after destination for EU exporters.
The agreement would create a market of 780mn people and save businesses in Europe more than €4bn annually in tariffs, according to the European Commission. EU companies have €330bn of investments in five South American countries.
The talks were dealt a blow after French President Emmanuel Macron in January stepped up his opposition to the deal, saying it would cause environmental damage and subject farmers to unfair competition.
But France has so far been backed only by Austria, which is insufficient to block a deal that requires a majority of the bloc’s 27 governments to be approved.
EU officials say they are now prepared to face down French opposition and insist the deal includes a commitment to implement the Paris Agreement, which pledges to keep global warming below 1.5 degrees Celsius. FT
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Indonesia Eyes Used Cooking Oil Downstreaming for Biofuel
TEMPO.CO, Jakarta - The Coordinating Ministry for Maritime Affairs and Investment has endorsed a proposal to classify used cooking oil as a commodity, paving the way for its downstreaming into biofuel production in a bid to bolster Indonesia's biofuel reserves.
Sora Lokita, Assistant Deputy for Delimitation of Maritime Zones and Border Areas, emphasized the importance of this academic paper during the dissemination event at Pullman Hotel, Jakarta on Monday, August 5.
“This academic paper is a new milestone that has succeeded in summarizing the issues that require attention. And I am sure this needs to be disseminated to all stakeholders so that various parties understand its content,” said Sora.
He admitted that Indonesia exported a substantial amount of used cooking oil, which is detrimental to the domestic biofuel industry. The government seeks to establish a robust domestic downstreaming sector to meet local demand.
“The Coordinating Minister for Maritime Affairs and Investment is also preparing [policies on] downstreaming. It (exports) won't be closed 100 percent, but we’re working towards a win-win solution for all,” he said.
The academic paper, produced by Traction Energy Asia and the Climate for Environmental Law and Climate Justice (CELCJ) of the University of Indonesia, advocates for government regulation of used cooking oil management and trade. It highlights the commodity's potential to contribute to Indonesia's energy transition while preventing environmental pollution.
It also noted critical issues and underscored the need for stakeholder engagement.
The paper also warns of potential price inflation and greenflation if the industry is not properly regulated and if used cooking oil becomes a sought-after commodity for biofuel production. Tempo
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Indonesia to Run B40 Biodiesel in 2025, Energy Minister Says
TEMPO.CO, Jakarta - Minister of Energy and Mineral Resources Arifin Tasrif said the government will accelerate the implementation of B40 biodiesel, the 60 percent diesel and 40 percent palm-oil-based biofuel blend.
"We have started to apply B35 biodiesel this year and will hopefully start running B40 next year, there’s an agreement already,” said Arifin, quoted from an official statement on Monday, August 5, 2024.
According to Arifin, in the second quarter of 2024, the government has managed to achieve 6.2 million kilo liters, or 54.2 percent of the 11.3 million kiloliters annual target. Going forward, through the B40 program, the government will increase palm-oil-based biodiesel adoption in various types of vehicles.
He said that after B40 was tested in the automotive industry four years ago, the trial will focus on agricultural equipment and the railway industry.
"We’ll target mining and heavy equipment industries which will soon commence in Balikpapan, East Kalimantan,” he said. Overall, Arifin estimated 16 million kiloliters of B40 will be required.
In addition to B40, Arifin went on, the government is preparing a policy for bioethanol as a gasoline fuel mixture.
Arifin claimed that bioethanol produced from raw materials, such as sugar cane and cassava, has the potential to reduce carbon emissions and increase national energy security.
In addition to reducing carbon emissions, according to Arifin, increasing biodiesel consumption will positively influence the economy by creating new jobs. "Including reducing dependence on fossil fuel imports," he said. Tempo
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EU palm oil imports to the EU from Indonesia declined in the first month of MY 2024/25
According to the analytical agency SunSirs, the volume of palm oil imports to the EU declined in the first month of MY 2024/2025, mainly due to lower imports from Indonesia. The European Union purchased 53,000 tons of palm oil from Indonesia, down from last year’s 89,000 tons.
At the end of the first month of fiscal year 2024/2025, the European Union imported 59 thousand tons of palm oil from Malaysia, accounting for 40.3% of total EU imports and higher than the same period last year (57 thousand tons and 19.8% respectively).
The second largest supplier is Indonesia, whose share of imports from Indonesia increased from 31.1% to 35.9% in volume terms.
From 2024 to 2025, the EU exported 150 thousand tons of palm oil, which is 49% less than in the previous year. UK Agro Consult
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India aims to increase domestic palm oil production six fold
Target set for six-fold rise in palm oil output by 2032; current output 0.4 MT
Industry has projected the plantation to increase to 1 MH by 2029 from the current level of 0. 5 MH.
The country is aiming to increase domestic palm oil production from the current level of 0.4 million tonne (MT) to 2.5 MT by 2032 under the national oil palm mission through adding at least 0.1 million hectare (MH) of new plantation annually in the five to six years, according to leading industry officials.
Sougata Niyogi, head, Godrej Agrovet, palm oil division, which owns a third of total palm plantation in the country, told FE that domestic production of palm oil is likely to meet around 25% of the current annual imports of palm oil estimated at around 9.6 MT by 2032. Financial Express
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Presco’s N39bn profit in 6 months shows Nigeria’s untapped oil palm opportunities
… total revenue made in Nigerian markets
…. profitability of oil palm firms justifies investments in ESOPP
Presco Nigeria Plc, one of Nigeria’s biggest agro-allied firms, has set a new record as it recorded a huge profit after tax in the first six months of 2024. The company announced a profit after tax of N38.88 billion from January to June 2024, amounting to an increase of 158 percent over N15.08 billion profit made in the similar period of 2023.
The profitability of the oil palm firms that are based in Edo State, south-south Nigeria, shows the untapped enormous opportunities in the oil palm business. It also vindicates the Edo State Government that has invested and attracted huge investments into the state’s oil palm sub sector in the last six years through the Edo State Oil Palm Programme (ESOPP).
“To start with, you have to go for the value crops like oil palm, rubber, and cocoa. We started from that end because of the advantage we have in attracting investors. We did a forest audit and realized that we had quite a lot of land that, unfortunately, had been deforested, which we could use for oil palm cultivation.
“We then launched the Edo State Oil Palm Programme (ESOPP). It was not about just giving out land, but a programme where we help you get land, survey the land, demarcate, go to the communities, deal with the communities, engage them, compensate those who you need to compensate, then do your nurseries, and get planting materials. Today, we have the largest agricultural programme on the continent, with more than 70,000 hectares of oil palm plantation. There are 7 to 8 investors, and everybody is producing,” Godwin Obaseki, governor, Edo State said. More Nigerian Observer
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August 05, 2024
Oil palm plantations as a viable candidate crop to power sequestration
ON Oct 22, the Malaysian Oil Scientists and Technologists Association (MOSTA) will host the "Palm Oil Industry and the Circular Economy" conference in Kuala Lumpur.
The conference is one of many efforts by MOSTA president Tan Sri Augustine Ong to showcase oil palm's superior sustainability attributes.
A key part of this conference is the unveiling of new scientific evidence on the sequestration power of oil palm. The fact that the average oil palm yield is almost 10 times more than other oilseed crops is enough evidence that the oil palm is a bigger carbon sequester. Theoretically, oil palm can yield up to 17 to 19 tonnes of oil per hectare per year.
The average now is only four tonnes and already showing a sequestration power far exceeding other oil crops. There will be a massive jump in sequestration if the yield is increased.
Improvements in carbon sequestration can be achieved by policies such as growing tropical crops as part of agroforestry systems, limiting deforestation and the use of peatland, and auditing the carbon impact of major cropping systems in order to focus on those crops that deliver both high yields and carbon efficiency.
Professor Dennis Murphy of the University of Wales, who will speak at the Oct 22 conference, has produced evidence that the oil palm is a viable candidate crop to power sequestration.
A study of the oil palm has demonstrated that it had favourable carbon sequestration potential that, under some circumstances, was comparable with tropical forests and superior to other oil crops.
The crop also has relatively untapped biomass sequestration potential in the form of its currently underutilised by-products, such as fronds and trunks.
A strategy that has proved successful in increasing carbon sequestration without using additional cropland is the development of higher yielding crop varieties. In the case of oil palm, this is possible. New Straits Times
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Lion Air Group eyes more SAF, environmentally friendly fleet
Lion Air Group will pursue more environmentally friendly investments, its managing director Daniel Putut Kuncoro Adi has told the business news site detikFinance, saying that this would include buying sustainable aviation fuels and aircraft that are kinder to the environment. He wants to see the entire fleet to be using SAFs by 2030.
"Hopefully, SAF will come to the aviation industry with a competitive price," he said. "We hope that by 2030 all of our fleet will use SAF.” Group airlines include Lion Air, Batik Air, Super Air Jet, Batik Air Malaysia, and Thai Lion Air.
The Indonesian government has declared its intention to turn the country into one of the world’s biggest SAF suppliers. Aside from its export potential, the government is keen to cut the costs of fuel and crude oil imports. Indonesia is already the world’s largest producer of crude palm oil. Trials started several years ago on palm oil's potential as a SAF feedstock. Jakarta is also interested in the potential of cooking oil, of which Indonesia is the world's third largest exporter, and coconut oil. In 2023, Garuda Indonesia (GA, Jakarta Soekarno-Hatta) operated its first commercial flight using SAF containing 2.4 tonnes of processed palm kernel oil. More Aviation
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Expanded Used Cooking Oil Program to collect half a million kgs by end of year
Kota Kinabalu: Sabahans are encouraged to keep their used cooking oil and resell them at any participating outlets such as selected Petronas stations.
This is to support an awareness and education initiative that aims to promote sustainable living and reduction in carbon emissions, said Deputy Minister of Plantations and Commodities Datuk Chan Foong Hin.
He said as part of the Fryer 2 Flyer initiative by the Ministry with Petronas Dagangan Berhad (PDB), with the cooperation of the City Hall (DBKK), it is also to help participants generate some income and allow for the development of Sustainable Aviation Fuel (SAF).
The Kota Kinabalu MP said this when launching the programme at the Petronas Petrol Station along Jalan Lintas near here, Saturday (Aug 3).
In Sabah, there are three participating Petronas gas stations which includes one in Tawau - Jalan Utara and Sandakan - Batu 8 Labuk bypass, respectively.
The public can sell their used oil at RM2.50 per kg in the participating Petronas stations every Sunday.
This price is cheaper compared to the selling price in Peninsular Malaysia due to the fuel subsidy differences.
Chan said Petronas Dagangan Berhad kick started the programme in Putrajaya in July, last year, and expanded the participating gas stations to 53 nationwide.
“With the expansion of participating gas stations, the Ministry aims to achieve over 500,000kg of used oil with the participation from some 100,000 people by the end of the year,” he said.
Chan said the programme commends the government’s objective of achieving a zero carbon emission nation by the year 2050, while the development of UCO into SAF can be pushed further. More Daily Express
Oil palm plantations as a viable candidate crop to power sequestration
ON Oct 22, the Malaysian Oil Scientists and Technologists Association (MOSTA) will host the "Palm Oil Industry and the Circular Economy" conference in Kuala Lumpur.
The conference is one of many efforts by MOSTA president Tan Sri Augustine Ong to showcase oil palm's superior sustainability attributes.
A key part of this conference is the unveiling of new scientific evidence on the sequestration power of oil palm. The fact that the average oil palm yield is almost 10 times more than other oilseed crops is enough evidence that the oil palm is a bigger carbon sequester. Theoretically, oil palm can yield up to 17 to 19 tonnes of oil per hectare per year.
The average now is only four tonnes and already showing a sequestration power far exceeding other oil crops. There will be a massive jump in sequestration if the yield is increased.
Improvements in carbon sequestration can be achieved by policies such as growing tropical crops as part of agroforestry systems, limiting deforestation and the use of peatland, and auditing the carbon impact of major cropping systems in order to focus on those crops that deliver both high yields and carbon efficiency.
Professor Dennis Murphy of the University of Wales, who will speak at the Oct 22 conference, has produced evidence that the oil palm is a viable candidate crop to power sequestration.
A study of the oil palm has demonstrated that it had favourable carbon sequestration potential that, under some circumstances, was comparable with tropical forests and superior to other oil crops.
The crop also has relatively untapped biomass sequestration potential in the form of its currently underutilised by-products, such as fronds and trunks.
A strategy that has proved successful in increasing carbon sequestration without using additional cropland is the development of higher yielding crop varieties. In the case of oil palm, this is possible. New Straits Times
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Lion Air Group eyes more SAF, environmentally friendly fleet
Lion Air Group will pursue more environmentally friendly investments, its managing director Daniel Putut Kuncoro Adi has told the business news site detikFinance, saying that this would include buying sustainable aviation fuels and aircraft that are kinder to the environment. He wants to see the entire fleet to be using SAFs by 2030.
"Hopefully, SAF will come to the aviation industry with a competitive price," he said. "We hope that by 2030 all of our fleet will use SAF.” Group airlines include Lion Air, Batik Air, Super Air Jet, Batik Air Malaysia, and Thai Lion Air.
The Indonesian government has declared its intention to turn the country into one of the world’s biggest SAF suppliers. Aside from its export potential, the government is keen to cut the costs of fuel and crude oil imports. Indonesia is already the world’s largest producer of crude palm oil. Trials started several years ago on palm oil's potential as a SAF feedstock. Jakarta is also interested in the potential of cooking oil, of which Indonesia is the world's third largest exporter, and coconut oil. In 2023, Garuda Indonesia (GA, Jakarta Soekarno-Hatta) operated its first commercial flight using SAF containing 2.4 tonnes of processed palm kernel oil. More Aviation
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Expanded Used Cooking Oil Program to collect half a million kgs by end of year
Kota Kinabalu: Sabahans are encouraged to keep their used cooking oil and resell them at any participating outlets such as selected Petronas stations.
This is to support an awareness and education initiative that aims to promote sustainable living and reduction in carbon emissions, said Deputy Minister of Plantations and Commodities Datuk Chan Foong Hin.
He said as part of the Fryer 2 Flyer initiative by the Ministry with Petronas Dagangan Berhad (PDB), with the cooperation of the City Hall (DBKK), it is also to help participants generate some income and allow for the development of Sustainable Aviation Fuel (SAF).
The Kota Kinabalu MP said this when launching the programme at the Petronas Petrol Station along Jalan Lintas near here, Saturday (Aug 3).
In Sabah, there are three participating Petronas gas stations which includes one in Tawau - Jalan Utara and Sandakan - Batu 8 Labuk bypass, respectively.
The public can sell their used oil at RM2.50 per kg in the participating Petronas stations every Sunday.
This price is cheaper compared to the selling price in Peninsular Malaysia due to the fuel subsidy differences.
Chan said Petronas Dagangan Berhad kick started the programme in Putrajaya in July, last year, and expanded the participating gas stations to 53 nationwide.
“With the expansion of participating gas stations, the Ministry aims to achieve over 500,000kg of used oil with the participation from some 100,000 people by the end of the year,” he said.
Chan said the programme commends the government’s objective of achieving a zero carbon emission nation by the year 2050, while the development of UCO into SAF can be pushed further. More Daily Express
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August 04, 2024
Malaysia expands UCO collection with From Fryer 2 Flyer: Used Cooking Oil Awareness Programme
KOTA KINABALU (Aug 3): Used cooking oil (UCO) can now be sold to generate household income and produce sustainable aviation fuel (SAF) with the launching of the ‘From Fryer 2 Flyer: Used Cooking Oil Awareness Programme’ on Saturday.
The programme will also support the recycling agenda and reduce the rate of greenhouse gas emissions, in line with the country’s commitments to achieve net zero carbon emissions by 2025.
In this regard, Petronas Dagangan Berhad (PDB) has made several Petronas gas stations as UCO collection centres, to make it easier for people to send and sell their used cooking oil for RM2.50 per kilogram.
The nationwide initiative, which had started with only three Petronas gas stations around Klang Valley, has since expanded to 54 stations throughout the nation.
With this expansion, the Ministry of Plantation and Commodities (KPK) is targeting 500,000 kilogrammes of UCO to be collected and the participation of more than 100,000 people by end of this year.
In Sabah, three Petronas gas stations have been made as UCO collection centres, namely along Jalan Lintas in Kota Kinabalu, Batu 8 Labuk By-Pass in Sandakan and Jalan Utara in Tawau.
KPK Deputy Minister Datuk Chan Foong Hin, who officiated the State-level programme in collaboration with the Kota Kinabalu City Hall (DBKK) at the Petronas gas station along Jalan Lintas here on Saturday, said it will be expanded to other stations throughout the state.
Chan said his ministry protects the interests of the palm oil industry and small farmers through efforts to increase palm-oil based downstream products, in addition to supporting economic generation through a circular economy from palm oil biomass.
He said apart from raising awareness on economic and environmental benefits, organising such programmes will indirectly increase public awareness on the importance and direction of the palm oil and biofuel industries in Malaysia.
The deputy minister also suggested for a by-law to be enacted to obligate small traders and food hawkers around Kota Kinabalu to regularly manage their UCO by selling them to Petronas gas stations or UCO collection companies.
“Based on statistics from the Malaysian Palm Oil Board (MPOB), the amount of UCO collected in the state of Sabah is still low, which is only approximately 2,700 tonnes from January until June 2024.
“Overall, this amount does not even reach 1.5 percent of the total collection of UCO throughout Malaysia, which is around 200,000 tonnes in the same period.
“In addition, based on the MPOB survey, as much as 77 percent of the population do not recycle and throw away used cooking oil in the trash or less suitable ways.
“Through the organisation of today’s and future campaigns in Sabah, I hope that more Sabahans are aware of the importance of managing used cooking oil in the correct way.
“An increase in awareness among the general public will not only provide economic benefits to the people of this state, but also to the environment,” he said.
PDB General Manager, Strategy and Sustainability, Harlina Pikri said UCO is often thrown away, polluting the environment and clogging waterways.
Instead, she said these used cooking oil actually has great potential to be converted into biofuel, as through innovation and technology, the UCO collected from the nationwide initiative can be processed into cleaner fuel for airplanes or Sustainable Aviation Fuel (SAF).
Hence, she said the initiative will be an important milestone in reducing the aviation industry’s carbon footprint and bringing everyone one step closer to a more sustainable future.
“Since this initiative was launched last year, we have received a positive response from the community. To date, customers have received more than RM1 million in cashback! This not only eases their burden to some extent, but also shows the positive impact on the environment that we can achieve when all parties work together.
“Our goal is more stations so that more UCO can be collected, and more positive impact on the environment. It’s a win-win situation for everyone!
“We hope that with the expansion of this program, the culture of recycling used cooking oil will become easier and more beneficial, and we hope that we can continue to cooperate and achieve the goal of sustainable development,” she said.
Harlina added that Petronas is planning for the construction of an SAF refinery in Pengerang, Johor.
Also present was Kota Kinabalu Mayor Dato’ Sri Dr Sabin Samitah. The Borneo Post
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Odisha’s Deputy CM K V Singh Deo Launches Mega Oil Palm Plantation Drive
Baripada: Deputy Chief Minister K V Singh Deo, who also holds the agriculture portfolio, launched a mega oil palm plantation campaign in Mayurbhanj district on Saturday.
The state-level campaign was launched at Dhanpur village under Betonati block of the tribal-dominated district.
The programme of oil palm cultivation has been taken up with the support of eleven palm oil companies, which also exhibited their products on the occasion.
For the promotion and propagation of the cultivation, the farmers are given incentives under the National Edible Oil Mission Scheme by the Central Government, official sources said.
Over 3,000 farmers from all the blocks in Mayurbhanj district will benefit from this large-scale oil palm plantation campaign.
The Deputy CM said that the palm oil cultivation mission of the central government, which has been started in 20 districts in the state, will bring economic prosperity among farmers.
The drive focuses on the livelihood of the farmers, who would be able to earn more than Rs 2 lakh per a hectare of land by undertaking oil palm cultivation. Odisha Bytes
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Red palm oil to benefit Indonesian oil palm smallholders
JAKARTA - Minister of Cooperatives and SMEs (Menkop UKM), Teten Masduki believes that the existence of red food oil will bring and improve welfare for oil palm farmers.
This was revealed by Minister Teten during the groundbreaking of the construction of the Red Food Oil Factory of the Prosperous Village Unit (KUD) Cooperative in Musi Banyuasin Regency, South Sumatra, Friday, August 2.
"As stated by the President (Joko Widodo) that there must be an increase in the welfare of farmers. If possible farmers get added value from their oil palm plantations, not only will FFB be sold but can be processed. Thus, this red food oil can be felt later it will cause changes to the welfare of farmers," said Teten.
Teten said that the processing of palm oil into red food oil can be done in a simple process, but it has superior value due to high nutritional content with pro vitamins A and E.
He emphasized that cooking oil, which is usually consumed by the public and is clear in color, is one of the standards to enter the European market. Thus, the red color that contains a lot of vitamins is even thrown away. VOI
Malaysia expands UCO collection with From Fryer 2 Flyer: Used Cooking Oil Awareness Programme
KOTA KINABALU (Aug 3): Used cooking oil (UCO) can now be sold to generate household income and produce sustainable aviation fuel (SAF) with the launching of the ‘From Fryer 2 Flyer: Used Cooking Oil Awareness Programme’ on Saturday.
The programme will also support the recycling agenda and reduce the rate of greenhouse gas emissions, in line with the country’s commitments to achieve net zero carbon emissions by 2025.
In this regard, Petronas Dagangan Berhad (PDB) has made several Petronas gas stations as UCO collection centres, to make it easier for people to send and sell their used cooking oil for RM2.50 per kilogram.
The nationwide initiative, which had started with only three Petronas gas stations around Klang Valley, has since expanded to 54 stations throughout the nation.
With this expansion, the Ministry of Plantation and Commodities (KPK) is targeting 500,000 kilogrammes of UCO to be collected and the participation of more than 100,000 people by end of this year.
In Sabah, three Petronas gas stations have been made as UCO collection centres, namely along Jalan Lintas in Kota Kinabalu, Batu 8 Labuk By-Pass in Sandakan and Jalan Utara in Tawau.
KPK Deputy Minister Datuk Chan Foong Hin, who officiated the State-level programme in collaboration with the Kota Kinabalu City Hall (DBKK) at the Petronas gas station along Jalan Lintas here on Saturday, said it will be expanded to other stations throughout the state.
Chan said his ministry protects the interests of the palm oil industry and small farmers through efforts to increase palm-oil based downstream products, in addition to supporting economic generation through a circular economy from palm oil biomass.
He said apart from raising awareness on economic and environmental benefits, organising such programmes will indirectly increase public awareness on the importance and direction of the palm oil and biofuel industries in Malaysia.
The deputy minister also suggested for a by-law to be enacted to obligate small traders and food hawkers around Kota Kinabalu to regularly manage their UCO by selling them to Petronas gas stations or UCO collection companies.
“Based on statistics from the Malaysian Palm Oil Board (MPOB), the amount of UCO collected in the state of Sabah is still low, which is only approximately 2,700 tonnes from January until June 2024.
“Overall, this amount does not even reach 1.5 percent of the total collection of UCO throughout Malaysia, which is around 200,000 tonnes in the same period.
“In addition, based on the MPOB survey, as much as 77 percent of the population do not recycle and throw away used cooking oil in the trash or less suitable ways.
“Through the organisation of today’s and future campaigns in Sabah, I hope that more Sabahans are aware of the importance of managing used cooking oil in the correct way.
“An increase in awareness among the general public will not only provide economic benefits to the people of this state, but also to the environment,” he said.
PDB General Manager, Strategy and Sustainability, Harlina Pikri said UCO is often thrown away, polluting the environment and clogging waterways.
Instead, she said these used cooking oil actually has great potential to be converted into biofuel, as through innovation and technology, the UCO collected from the nationwide initiative can be processed into cleaner fuel for airplanes or Sustainable Aviation Fuel (SAF).
Hence, she said the initiative will be an important milestone in reducing the aviation industry’s carbon footprint and bringing everyone one step closer to a more sustainable future.
“Since this initiative was launched last year, we have received a positive response from the community. To date, customers have received more than RM1 million in cashback! This not only eases their burden to some extent, but also shows the positive impact on the environment that we can achieve when all parties work together.
“Our goal is more stations so that more UCO can be collected, and more positive impact on the environment. It’s a win-win situation for everyone!
“We hope that with the expansion of this program, the culture of recycling used cooking oil will become easier and more beneficial, and we hope that we can continue to cooperate and achieve the goal of sustainable development,” she said.
Harlina added that Petronas is planning for the construction of an SAF refinery in Pengerang, Johor.
Also present was Kota Kinabalu Mayor Dato’ Sri Dr Sabin Samitah. The Borneo Post
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Odisha’s Deputy CM K V Singh Deo Launches Mega Oil Palm Plantation Drive
Baripada: Deputy Chief Minister K V Singh Deo, who also holds the agriculture portfolio, launched a mega oil palm plantation campaign in Mayurbhanj district on Saturday.
The state-level campaign was launched at Dhanpur village under Betonati block of the tribal-dominated district.
The programme of oil palm cultivation has been taken up with the support of eleven palm oil companies, which also exhibited their products on the occasion.
For the promotion and propagation of the cultivation, the farmers are given incentives under the National Edible Oil Mission Scheme by the Central Government, official sources said.
Over 3,000 farmers from all the blocks in Mayurbhanj district will benefit from this large-scale oil palm plantation campaign.
The Deputy CM said that the palm oil cultivation mission of the central government, which has been started in 20 districts in the state, will bring economic prosperity among farmers.
The drive focuses on the livelihood of the farmers, who would be able to earn more than Rs 2 lakh per a hectare of land by undertaking oil palm cultivation. Odisha Bytes
--------
Red palm oil to benefit Indonesian oil palm smallholders
JAKARTA - Minister of Cooperatives and SMEs (Menkop UKM), Teten Masduki believes that the existence of red food oil will bring and improve welfare for oil palm farmers.
This was revealed by Minister Teten during the groundbreaking of the construction of the Red Food Oil Factory of the Prosperous Village Unit (KUD) Cooperative in Musi Banyuasin Regency, South Sumatra, Friday, August 2.
"As stated by the President (Joko Widodo) that there must be an increase in the welfare of farmers. If possible farmers get added value from their oil palm plantations, not only will FFB be sold but can be processed. Thus, this red food oil can be felt later it will cause changes to the welfare of farmers," said Teten.
Teten said that the processing of palm oil into red food oil can be done in a simple process, but it has superior value due to high nutritional content with pro vitamins A and E.
He emphasized that cooking oil, which is usually consumed by the public and is clear in color, is one of the standards to enter the European market. Thus, the red color that contains a lot of vitamins is even thrown away. VOI
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August 03, 2024
India, EFTA trade pact under ratification process: Jitin Prasada
The government on Friday said the free trade agreement signed between India and the four European nation bloc EFTA in March is under the ratification process in those countries. In a written reply to the Rajya Sabha, Minister of State for Commerce and Industry Jitin Prasada said that there is no fixed time frame for the ratification, as the process is different in each of the EFTA (European Free Trade Association) countries.
In March, India and EFTA signed a Trade and Economic Partnership Agreement (TEPA).
Under the pact, India will receive the investment in 15 years from the grouping while allowing several products such as Swiss watches, chocolates and cut and polished diamonds at lower or zero duties. Economic Times
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Next round of India-Asean trade agreement review talks in November
The next round of talks for the ongoing review meeting of the India-Asean free trade agreement in goods will be held in November, an official statement said on Saturday. The third round of the negotiations was concluded on August 1 in Jakarta, Indonesia.
Eight sub-committees have been constituted under the India-Asean Free Trade Agreement Joint Committee for undertaking negotiations on different areas related to the review of the pact.
"The next meeting of the AITIGA (Asean-India Trade in Goods Agreement) Joint Committee will be held in India from 19-22 November 2024," the Commerce Ministry said. Economic Times
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What does the EU Deforestation Regulations means for Ugandan coffee?
In 2023, the European Union (EU) established mandatory rules for companies dealing in commodities such as coffee, palm oil, and cocoa etc. The rules are designed to ensure that products imported to Europe do not originate from deforested land, land acquired forcibly from local and/or indigenous communities, or whose cultivation involves labor and/or human rights abuses, The Regulation applies even-handedly to products from outside of the EU and those from the EU, there is no discrimination. The Regulation applies to above products, whether there are produced in the EU or imported.
As Uganda prepares itself to fulfil the new European Union regulations on coffee set to take effective on 1st July 2025. The new regulation will require that we trace our coffee from the garden to the market, This means we must know is producing coffee in Uganda, where are they located, which type of coffee are they growing and this requires us file a due diligence certificate. So, for the coffee exporter they must file a due diligence certificate which shows their location in terms of GPS coordinates.
Relatedly, for farmers with more than 10 acres of land there is a requirement a polygon map showing the entire drawings of your garden and if they have less than 10acres, then the GPS coordinates are mandatory to access the European union markets, This will require a national traceability system by 31st December 2024, which includes comprehensive farmer registration and location. More Chimpreports
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Indonesia Fulfills 22 Percent Demand For World Vegetable Oil
Director of Planning and Fund Management of the Directorate General of Treasury of the Palm Oil Fund Management and Plantation Agency (Dirjen BPDPKS) of the Ministry of Finance (Kemenkeu) Kabul Wijayanto said that Indonesia had met the world's vegetable oil demand of up to 22 percent.
Indonesia plays an important role, because the demand for world vegetable oil is 300.7 million tons in 2040, while Indonesia has fulfilled 22 percent of vegetable oil for the world today," he said as quoted by ANTARA, Friday, August 2.
He explained that palm oil contributes to the economic growth in Indonesia as the largest palm oil producer in the world.
It was recorded that palm oil exports in 2023 reached 50.07 million tons, a total of 28.45 billion US dollars.
This is equivalent to contributing 12 percent of exports as a strategic commodity in Indonesia. VOI
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MACC nabs three for allegedly accepting bribes to conceal documents on palm oil industry company
PUTRAJAYA (Aug 3): The Malaysian Anti-Corruption Commission (MACC) arrested three individuals for allegedly receiving bribes to conceal important documents involving a palm oil industry company.
An MACC source said that two men and a woman, in their 40s to 50s, were arrested at the MACC headquarters here around 10pm on Friday to 1am on Saturday, when they showed up to provide their statements.
“The two men, who are the company secretaries, were arrested on suspicions of taking bribes to conceal several important documents related to a call option agreement (COA).
“The documents were concealed by the company secretaries to delay a second party from conducting a COA that was signed in March 2021, and to delay the trial of a civil suit decided by the High Court in October 2022,” the source said, adding that the woman, who is an account manager, was arrested for being involved in transactions to receive the bribes.
The woman is being remanded for three days until Monday, while the two men would be remanded for five days until Wednesday, the source said. The Edge Malaysia
India, EFTA trade pact under ratification process: Jitin Prasada
The government on Friday said the free trade agreement signed between India and the four European nation bloc EFTA in March is under the ratification process in those countries. In a written reply to the Rajya Sabha, Minister of State for Commerce and Industry Jitin Prasada said that there is no fixed time frame for the ratification, as the process is different in each of the EFTA (European Free Trade Association) countries.
In March, India and EFTA signed a Trade and Economic Partnership Agreement (TEPA).
Under the pact, India will receive the investment in 15 years from the grouping while allowing several products such as Swiss watches, chocolates and cut and polished diamonds at lower or zero duties. Economic Times
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Next round of India-Asean trade agreement review talks in November
The next round of talks for the ongoing review meeting of the India-Asean free trade agreement in goods will be held in November, an official statement said on Saturday. The third round of the negotiations was concluded on August 1 in Jakarta, Indonesia.
Eight sub-committees have been constituted under the India-Asean Free Trade Agreement Joint Committee for undertaking negotiations on different areas related to the review of the pact.
"The next meeting of the AITIGA (Asean-India Trade in Goods Agreement) Joint Committee will be held in India from 19-22 November 2024," the Commerce Ministry said. Economic Times
--------
What does the EU Deforestation Regulations means for Ugandan coffee?
In 2023, the European Union (EU) established mandatory rules for companies dealing in commodities such as coffee, palm oil, and cocoa etc. The rules are designed to ensure that products imported to Europe do not originate from deforested land, land acquired forcibly from local and/or indigenous communities, or whose cultivation involves labor and/or human rights abuses, The Regulation applies even-handedly to products from outside of the EU and those from the EU, there is no discrimination. The Regulation applies to above products, whether there are produced in the EU or imported.
As Uganda prepares itself to fulfil the new European Union regulations on coffee set to take effective on 1st July 2025. The new regulation will require that we trace our coffee from the garden to the market, This means we must know is producing coffee in Uganda, where are they located, which type of coffee are they growing and this requires us file a due diligence certificate. So, for the coffee exporter they must file a due diligence certificate which shows their location in terms of GPS coordinates.
Relatedly, for farmers with more than 10 acres of land there is a requirement a polygon map showing the entire drawings of your garden and if they have less than 10acres, then the GPS coordinates are mandatory to access the European union markets, This will require a national traceability system by 31st December 2024, which includes comprehensive farmer registration and location. More Chimpreports
--------
Indonesia Fulfills 22 Percent Demand For World Vegetable Oil
Director of Planning and Fund Management of the Directorate General of Treasury of the Palm Oil Fund Management and Plantation Agency (Dirjen BPDPKS) of the Ministry of Finance (Kemenkeu) Kabul Wijayanto said that Indonesia had met the world's vegetable oil demand of up to 22 percent.
Indonesia plays an important role, because the demand for world vegetable oil is 300.7 million tons in 2040, while Indonesia has fulfilled 22 percent of vegetable oil for the world today," he said as quoted by ANTARA, Friday, August 2.
He explained that palm oil contributes to the economic growth in Indonesia as the largest palm oil producer in the world.
It was recorded that palm oil exports in 2023 reached 50.07 million tons, a total of 28.45 billion US dollars.
This is equivalent to contributing 12 percent of exports as a strategic commodity in Indonesia. VOI
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MACC nabs three for allegedly accepting bribes to conceal documents on palm oil industry company
PUTRAJAYA (Aug 3): The Malaysian Anti-Corruption Commission (MACC) arrested three individuals for allegedly receiving bribes to conceal important documents involving a palm oil industry company.
An MACC source said that two men and a woman, in their 40s to 50s, were arrested at the MACC headquarters here around 10pm on Friday to 1am on Saturday, when they showed up to provide their statements.
“The two men, who are the company secretaries, were arrested on suspicions of taking bribes to conceal several important documents related to a call option agreement (COA).
“The documents were concealed by the company secretaries to delay a second party from conducting a COA that was signed in March 2021, and to delay the trial of a civil suit decided by the High Court in October 2022,” the source said, adding that the woman, who is an account manager, was arrested for being involved in transactions to receive the bribes.
The woman is being remanded for three days until Monday, while the two men would be remanded for five days until Wednesday, the source said. The Edge Malaysia
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August 02, 2024
Indonesia's palm oil DMO rule changes will not affect export ratio, official says
JAKARTA (Aug 1): Indonesia's plan to revise domestic market obligation (DMO) rules for palm oil will not affect the DMO export ratio, a senior trade ministry official said on Thursday.
Indonesia, the world's biggest palm oil exporter, obliges producers to sell a portion of their output to the local market at a capped price in order to gain export permits.
Asked whether this DMO export ratio will change, Budi Santoso, director general of international trade, said there was "no plan yet" on such a change.
Export quotas are currently set at four times the volume of palm oil that companies supply locally under the DMO scheme. Extra allotments are given to companies that sell in smaller, household-friendly sizes.
As of the end of July, the outstanding palm oil export quota stood at 3.95 million metric tonnes, Budi said. Reuters/ The Edge Malaysia
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KPK TO ADDRESS LAND ISSUES, STANDARD COMPLIANCE VIA ROADSHOW -- JOHARI
PUTRAJAYA, Aug 1 (Bernama) – The Ministry of Plantation and Commodities (KPK) will embark on a nationwide roadshow to expedite the resolution of various land issues.
At the same time, the ministry will also take the opportunity to educate oil palm planters on compliance with international standards, such as the European Union Deforestation Regulation (EUDR).
KPK Minister Datuk Seri Johari Abdul Ghani said this initiative was the result of a meeting he chaired with state agricultural executive council members today.
“We want them to understand the impact and implications (of the standard compliance). We have to do this because we export our commodities overseas.
“We produce 18.5 million tonnes of oil palm but we only consume 4.0 million tonnes. If we cannot export our products because of non-compliance with global standards, who will consume the balance of 14 million tonnes?” he said.
He emphasised that there are many issues which need to be jointly addressed by the Federal and state governments, especially with regards to compliance with international standards on sustainability such as the EUDR; environmental conservation and rehabilitation efforts; forced labour; as well as human rights. Bernama
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Malaysia, UAE to increase bilateral trade and investment
KUALA LUMPUR: Malaysia and the United Arab Emirates (UAE) have reached an agreement that would improve bilateral trade and investment between the two nations.
The Malaysia-UAE Comprehensive Economic Partnership Agreement (MY-UAE CEPA) is anticipated to be implemented by the end of 2024.
"The MY-UAE CEPA, a comprehensive CEPA, encompasses areas such as trade in goods; trade in services; investment facilitation; digital trade; micro and small medium enterprises; economic cooperation, and others.
"Notably, it introduces Malaysia's first chapter on Islamic Economy in a CEPA, paving the way for collaboration with UAE in the areas of Halal certification, Islamic finance, and digital," it adds.
Malaysia's delegation was led by Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz, while the UAE was represented by His Excellency Dr. Thani Bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade.
Tengku Zafrul stated that this agreement represents Malaysia's first Free Trade Agreement with a country from the Gulf Cooperation Council (GCC). New Straits Times
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European consumers could experience ‘greenflation’ once the EUDR takes effect
The European Union Deforestation Regulation (EUDR) could cost EU consumers up to USD $1.5 billion, as new sustainability rules are set to impact global commodity supply chains, according to a new GlobalData study.
The EUDR aims to cut greenhouse gas emissions and help limit biodiversity loss by influencing global action on climate change targeting commodities linked to deforestation. The EUDR will come into force from December 2024 to June 2025 and goes much further than previous regulation on this issue by outright banning materials linked to deforestation and applying to the entire value chain. The EUDR covers products made or derived from cattle, oil palm, rubber, soya, wood, cocoa, and coffee, if they are sold in the EU. The regulation must be followed by any company involved in the value chain of these commodities at any point, whether inside the EU or not.
Under this regulation, companies must prove that none of their product’s components, ingredients, or production processes have contributed to deforestation. The onus will be on companies to prove that not only their product, but their product’s value chain is deforestation-free. Tea and Coffee
Indonesia's palm oil DMO rule changes will not affect export ratio, official says
JAKARTA (Aug 1): Indonesia's plan to revise domestic market obligation (DMO) rules for palm oil will not affect the DMO export ratio, a senior trade ministry official said on Thursday.
Indonesia, the world's biggest palm oil exporter, obliges producers to sell a portion of their output to the local market at a capped price in order to gain export permits.
Asked whether this DMO export ratio will change, Budi Santoso, director general of international trade, said there was "no plan yet" on such a change.
Export quotas are currently set at four times the volume of palm oil that companies supply locally under the DMO scheme. Extra allotments are given to companies that sell in smaller, household-friendly sizes.
As of the end of July, the outstanding palm oil export quota stood at 3.95 million metric tonnes, Budi said. Reuters/ The Edge Malaysia
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KPK TO ADDRESS LAND ISSUES, STANDARD COMPLIANCE VIA ROADSHOW -- JOHARI
PUTRAJAYA, Aug 1 (Bernama) – The Ministry of Plantation and Commodities (KPK) will embark on a nationwide roadshow to expedite the resolution of various land issues.
At the same time, the ministry will also take the opportunity to educate oil palm planters on compliance with international standards, such as the European Union Deforestation Regulation (EUDR).
KPK Minister Datuk Seri Johari Abdul Ghani said this initiative was the result of a meeting he chaired with state agricultural executive council members today.
“We want them to understand the impact and implications (of the standard compliance). We have to do this because we export our commodities overseas.
“We produce 18.5 million tonnes of oil palm but we only consume 4.0 million tonnes. If we cannot export our products because of non-compliance with global standards, who will consume the balance of 14 million tonnes?” he said.
He emphasised that there are many issues which need to be jointly addressed by the Federal and state governments, especially with regards to compliance with international standards on sustainability such as the EUDR; environmental conservation and rehabilitation efforts; forced labour; as well as human rights. Bernama
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Malaysia, UAE to increase bilateral trade and investment
KUALA LUMPUR: Malaysia and the United Arab Emirates (UAE) have reached an agreement that would improve bilateral trade and investment between the two nations.
The Malaysia-UAE Comprehensive Economic Partnership Agreement (MY-UAE CEPA) is anticipated to be implemented by the end of 2024.
"The MY-UAE CEPA, a comprehensive CEPA, encompasses areas such as trade in goods; trade in services; investment facilitation; digital trade; micro and small medium enterprises; economic cooperation, and others.
"Notably, it introduces Malaysia's first chapter on Islamic Economy in a CEPA, paving the way for collaboration with UAE in the areas of Halal certification, Islamic finance, and digital," it adds.
Malaysia's delegation was led by Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz, while the UAE was represented by His Excellency Dr. Thani Bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade.
Tengku Zafrul stated that this agreement represents Malaysia's first Free Trade Agreement with a country from the Gulf Cooperation Council (GCC). New Straits Times
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European consumers could experience ‘greenflation’ once the EUDR takes effect
The European Union Deforestation Regulation (EUDR) could cost EU consumers up to USD $1.5 billion, as new sustainability rules are set to impact global commodity supply chains, according to a new GlobalData study.
The EUDR aims to cut greenhouse gas emissions and help limit biodiversity loss by influencing global action on climate change targeting commodities linked to deforestation. The EUDR will come into force from December 2024 to June 2025 and goes much further than previous regulation on this issue by outright banning materials linked to deforestation and applying to the entire value chain. The EUDR covers products made or derived from cattle, oil palm, rubber, soya, wood, cocoa, and coffee, if they are sold in the EU. The regulation must be followed by any company involved in the value chain of these commodities at any point, whether inside the EU or not.
Under this regulation, companies must prove that none of their product’s components, ingredients, or production processes have contributed to deforestation. The onus will be on companies to prove that not only their product, but their product’s value chain is deforestation-free. Tea and Coffee
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August 01, 2024
Agency calls for removal of 10pc tax on crude palm oil
By Anthony Mwangi
Manufacturers of vegetable oil now want the government to remove the 10 per cent duty on crude palm oil.
The new tax has been introduced under the East Africa Community Common External Tariff with only Kenya and Uganda implementing it.
The Edible Oil Manufacturers Association of Kenya has protested that the duty has increased costs of importing crude oil and in the process forced them to increase the price of the essential commodity.
“Consumers will feel the impact through price hikes on cooking oil and other end products made from crude palm oil,” said Billow Kerrow, the chairperson of the association.
The new rate took effect from the start of last month as the EAC agreed to a proposal by Kenya to hike the rate from the previous zero rate under the common external tariff (CET).
Price of a 20-litre jerry can of the commodity has since jumped to Sh4,200 from Sh3,800 following the new tax, as manufacturers grapple with increased costs which set the stage for higher consumer prices.
“We have written to the National Treasury to have this tax removed because this is making the costs of living go up by increasing prices of a critical commodity like cooking oil,” said Kerrow, who is also the chairman of the Darfords Industries Limited.
Imposition of the duty will also undo the steady price drops on vegetable oil and related products that Kenyans have been enjoying on a combination of the strengthening shilling and major source markets like Indonesia lifting caps on import quotas of crude palm oil. People Daily
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EU deforestation regulation could be disastrous for beef trade
Steps required to comply with EUDR are not well-defined and the regulation makes the EU an even more difficult market for the U.S. beef industry to serve.
Despite numerous and wide-ranging calls for postponement, the European Union Deforestation Regulation (EUDR) is set to be implemented at the end of this year. EUDR was originally adopted in December 2021 as part of the EU Farm to Fork and Biodiversity Strategies and will impose mandatory due diligence requirements for companies wanting to sell cattle, soy, palm oil, wood, cocoa, coffee and rubber in the EU. Because products derived from these items are also included, these regulations apply to beef and hides. The European Parliament had sought to expand EUDR to include pork, poultry, sheep and goat meat and corn, but these products are excluded from the first round.
When EUDR enters into force, companies that want to place covered products on the EU market, or export them, must prove that their products are both deforestation-free (produced on land that was not subject to deforestation after Dec. 31, 2020) and legal (compliant with all relevant applicable laws in force in the country of production). As part of the due diligence, this includes submission of geolocations for the land where the cattle were raised. A country benchmarking system was also to be established in which the European Commission will assess the deforestation risk from countries, or parts thereof, that produce relevant commodities and products, but this has not yet happened.
While it is not surprising that beef is on the list of products covered by EUDR, the notion that U.S. beef production contributes – or benefits from – deforestation is far-fetched. But as Erin Borror, U.S. Meat Export Federation (USMEF) vice president of economic analysis explains, the steps required to comply with EUDR are not well-defined and the regulation makes the EU an even more difficult market for the U.S. beef industry to serve.
“The EU could have made this workable with a negligible risk classification that allows a supplying country to be written out of the regulation if it has rigorous data showing that its production of beef and other affected products is not impacted by deforestation,” Borror said. “But as currently written, good actors are subject to the same requirements as those regions where deforestation is a genuine concern. U.S. agriculture simply does not contribute to deforestation in the United States. The U.S. beef industry is part of the solution, not part of the problem, and we should not be penalized by this regulation.” More Beef Magazine
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The impact of European Union Deforestation Regulation: Four lessons from Peru's Journey
Bledi CelikuGuillermo ArenasMiguel Ángel García PazRoberto Echandi
Time is running short. Starting on December 30, the European Union (EU) will impose new environmental requirements on imports of coffee, cocoa, palm oil, soy, beef, wood, and some derived products—many of them originating in low- and middle-income countries. The Deforestation Regulation is part of a broader EU effort to reduce global greenhouse gas emissions and biodiversity loss, and other countries are considering similar measures.
The regulation requires EU-based importers to provide detailed documentation, such as geolocation data, to show that a product did not originate from land deforested after 2020 and that it was produced in accordance with local laws. In practice, much of the burden will be passed on to farmers, manufacturers, and exporters in countries where the affected commodities are produced.
World Bank research shows that the EU Deforestation Regulation’s impact on exports of low- and middle-income countries is likely to be significant. Up to 22 percent of Latin America’s exports to the EU—or 2.3 percent of its total exports —could be affected.
Developing country governments and firms – particularly small and medium-sized ones – need technical and financial assistance to comply with the regulation. In Peru, where exports of affected commodities including coffee, cocoa, wood, and palm oil comprise about 12 percent of total shipments to the EU, a World Bank team worked with the government to craft a roadmap to ensure adherence to the EU Deforestation Regulation (EUDR), identifying key compliance gaps in Peru’s supply chains.
The experience offers four lessons for other countries: More World Bank
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NGOs and industry share worries over EU anti-deforestation law
By Sofia Sanchez Manzanaro | Euractiv
The looming implementation of an EU law aimed at making European supply chains deforestation-free has united industry, traders, farmers, and NGOs in concern.
Repeated delays from the European Commission in releasing enforcement guidelines for the new EU anti-deforestation rules (EUDR), just five months before they kick in, are causing worry across the agri-food sector and among environmental and human rights advocates.
The law affects commodities widely consumed in the EU, including cocoa, coffee, cattle, soy, and palm oil, impacting numerous importers, processors, retailers, and farmers globally.
Fears that small farmers in developing countries will be disproportionately affected have led the Global Coffee Platform (GCP), which includes organisations such as the Global Fund to End Modern Slavery, Heifer International, Rainforest Alliance, Slow Food, and Solidaridad Network, to urge the Commission to address outstanding issues in the law’s implementation.
The GCP endorsed a letter sent to the Commission on 26 July, also signed by organisations representing coffee growers around the world and the European Coffee Federation, which includes small and medium-sized processors as well as large companies such as Nestlé and Starbucks.
The stakeholder coalition urged the Commission to address their concerns by October.
“Our efforts to comply with the EUDR have revealed critical issues that threaten our ability to meet the regulation’s objectives without unintended consequences for smallholder coffee farmers and smaller companies,” the letter said. More at Euractiv
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EU regulation demands furniture makers prove wood source
Bobby Dalheim //Senior Editor of Case Goods and Global Sourcing
BRUSSELS – New regulation would require all companies selling certain products in EU-member countries to prove their supply chains do not contain any materials from deforested lands.
In June 2023, the EU enacted a policy requiring companies selling soy, beef, palm oil, wood and other products, in addition to any “derived” product – including furniture – to prove their products “do not originate from recently deforested land or have contributed to forest degradation.”
Specifically, wood products and furniture sold in Europe must be accompanied by a map of every forest the product sourced wood from, as well as a satellite analysis demonstrating those forests are deforestation-free.
Companies that cannot show their products adhere to this regulation will not be allowed to sell those products in any of the EU’s 27 member states. Companies had 18 months to implement the rule, making the deadline Dec. 30 of this year.
“As a major economy and consumer of these commodities linked to deforestation and forest degradation, the EU is partly responsible for this problem, and it wants to lead the way to solving it,” the EU wrote at the time.
The regulation has faced pushback from the U.S. and from countries including Australia, Brazil, Indonesia and Malaysia, which are seeking more time and clarification for implementation.
U.S. Trade Representative Katherine Tai, Agriculture Secretary Thomas Vilsack and U.S. Commerce Secretary Gina Raimondo told the EU in a letter that U.S. producers were having trouble preparing to comply with the rule.
“We, therefore, urge the European Commission to delay the implementation of this regulation and subsequent enforcement penalties until these substantial challenges have been addressed,” said the letter, dated May 30, first reported by the Financial Times.
With only six months before the law takes effect, the letter states that the EU hasn’t yet launched a system for producers to submit their documentation and “has not provided clear implementing guidance.”
In early July, an EU spokesperson said the union had received the letter and would reply.
In a letter to European paper producers, the EU acknowledged the concerns from the U.S. letter, per Reuters.
“We are hearing feedback from some stakeholders that preparation for implementation may be challenging,” this letter stated. “However, we also see encouraging signs in many sectors and countries working to align with EUDR (EU Deforestation Regulation) requirements.” Furniture Today
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Indonesia, GCC launches free trade agreement talks
JAKARTA, July 31 (Xinhua) -- Indonesia and the Gulf Cooperation Council (GCC) initiated negotiations for the Indonesia-GCC Free Trade Agreement (I-GCC FTA) at the Trade Ministry here on Wednesday.
The event was highlighted by the signing of a joint statement by Indonesian Trade Minister Zulkifli Hasan and GCC Secretary-General Jasem Mohamed Albudaiwi.
"Through the I-GCC FTA, Indonesia aims to strengthen trade relations while opening up mutually beneficial investment opportunities," the Indonesian trade minister said in his speech.
He added that the FTA is expected to boost exports of Indonesian commodities, such as motor vehicles, palm oil, jewelry, coffee, textiles, and electronics.
Jasem highlighted the significant potential benefits of the I-GCC FTA for both Indonesia and the Gulf countries, covering not only trade in goods but also services, customs, trade barriers, and small and medium enterprises.
"We want this trade agreement not only to increase trade figures but also to enhance economic cooperation in other areas. We also aim to open up opportunities for collaboration in new sectors, particularly Islamic economics," he said.
The GCC is a cooperative group of six countries: Saudi Arabia, the United Arab Emirates, Kuwait, Bahrain, Oman, and Qatar.
Last year, trade transactions between Indonesia and the GCC amounted to 15.7 billion U.S. dollars, with 6.2 billion dollars recorded from January to May this year Xin Hua/ CN
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Airlangga Says China Will Reopen Access to Indonesian CPO
Jakarta. Chief Economic Minister Airlangga Hartarto said on Tuesday that the Chinese government will reopen its markets for crude palm oil (CPO) and other agricultural commodities from Indonesia.
"The Chinese government has also pledged investments in the ‘green industry’, electric vehicles and batteries, the digital sector, and logistics,” Airlangga said.
His remarks came after he received a visit from Sun Haiyan, deputy minister of the International Liaison Department of the Communist Party of China (CPC), at his office in Jakarta.
According to Airlangga, bilateral trade between Indonesia and China was valued at $127.8 billion last year, in Indonesia’s favor.
"Of that amount, Indonesia’s exports to China stood at $64.9 billion, while imports from China totaled $62.88 billion," he said.
In the four consecutive years prior, Indonesia had suffered a trade deficit with China.
The CPC invited the Indonesian government and the Golkar Party to visit China to share knowledge about their free meal program.
President-Elect Prabowo Subianto plans to provide free meals for children and expectant mothers when he assumes office in October, as part of his efforts to combat stunting.
"China has implemented a similar program for 10 years,” Airlangga said. Jakarta Globe
CSPO Watch August 2024 Palm oil news
Agency calls for removal of 10pc tax on crude palm oil
By Anthony Mwangi
Manufacturers of vegetable oil now want the government to remove the 10 per cent duty on crude palm oil.
The new tax has been introduced under the East Africa Community Common External Tariff with only Kenya and Uganda implementing it.
The Edible Oil Manufacturers Association of Kenya has protested that the duty has increased costs of importing crude oil and in the process forced them to increase the price of the essential commodity.
“Consumers will feel the impact through price hikes on cooking oil and other end products made from crude palm oil,” said Billow Kerrow, the chairperson of the association.
The new rate took effect from the start of last month as the EAC agreed to a proposal by Kenya to hike the rate from the previous zero rate under the common external tariff (CET).
Price of a 20-litre jerry can of the commodity has since jumped to Sh4,200 from Sh3,800 following the new tax, as manufacturers grapple with increased costs which set the stage for higher consumer prices.
“We have written to the National Treasury to have this tax removed because this is making the costs of living go up by increasing prices of a critical commodity like cooking oil,” said Kerrow, who is also the chairman of the Darfords Industries Limited.
Imposition of the duty will also undo the steady price drops on vegetable oil and related products that Kenyans have been enjoying on a combination of the strengthening shilling and major source markets like Indonesia lifting caps on import quotas of crude palm oil. People Daily
--------
EU deforestation regulation could be disastrous for beef trade
Steps required to comply with EUDR are not well-defined and the regulation makes the EU an even more difficult market for the U.S. beef industry to serve.
Despite numerous and wide-ranging calls for postponement, the European Union Deforestation Regulation (EUDR) is set to be implemented at the end of this year. EUDR was originally adopted in December 2021 as part of the EU Farm to Fork and Biodiversity Strategies and will impose mandatory due diligence requirements for companies wanting to sell cattle, soy, palm oil, wood, cocoa, coffee and rubber in the EU. Because products derived from these items are also included, these regulations apply to beef and hides. The European Parliament had sought to expand EUDR to include pork, poultry, sheep and goat meat and corn, but these products are excluded from the first round.
When EUDR enters into force, companies that want to place covered products on the EU market, or export them, must prove that their products are both deforestation-free (produced on land that was not subject to deforestation after Dec. 31, 2020) and legal (compliant with all relevant applicable laws in force in the country of production). As part of the due diligence, this includes submission of geolocations for the land where the cattle were raised. A country benchmarking system was also to be established in which the European Commission will assess the deforestation risk from countries, or parts thereof, that produce relevant commodities and products, but this has not yet happened.
While it is not surprising that beef is on the list of products covered by EUDR, the notion that U.S. beef production contributes – or benefits from – deforestation is far-fetched. But as Erin Borror, U.S. Meat Export Federation (USMEF) vice president of economic analysis explains, the steps required to comply with EUDR are not well-defined and the regulation makes the EU an even more difficult market for the U.S. beef industry to serve.
“The EU could have made this workable with a negligible risk classification that allows a supplying country to be written out of the regulation if it has rigorous data showing that its production of beef and other affected products is not impacted by deforestation,” Borror said. “But as currently written, good actors are subject to the same requirements as those regions where deforestation is a genuine concern. U.S. agriculture simply does not contribute to deforestation in the United States. The U.S. beef industry is part of the solution, not part of the problem, and we should not be penalized by this regulation.” More Beef Magazine
--------
The impact of European Union Deforestation Regulation: Four lessons from Peru's Journey
Bledi CelikuGuillermo ArenasMiguel Ángel García PazRoberto Echandi
Time is running short. Starting on December 30, the European Union (EU) will impose new environmental requirements on imports of coffee, cocoa, palm oil, soy, beef, wood, and some derived products—many of them originating in low- and middle-income countries. The Deforestation Regulation is part of a broader EU effort to reduce global greenhouse gas emissions and biodiversity loss, and other countries are considering similar measures.
The regulation requires EU-based importers to provide detailed documentation, such as geolocation data, to show that a product did not originate from land deforested after 2020 and that it was produced in accordance with local laws. In practice, much of the burden will be passed on to farmers, manufacturers, and exporters in countries where the affected commodities are produced.
World Bank research shows that the EU Deforestation Regulation’s impact on exports of low- and middle-income countries is likely to be significant. Up to 22 percent of Latin America’s exports to the EU—or 2.3 percent of its total exports —could be affected.
Developing country governments and firms – particularly small and medium-sized ones – need technical and financial assistance to comply with the regulation. In Peru, where exports of affected commodities including coffee, cocoa, wood, and palm oil comprise about 12 percent of total shipments to the EU, a World Bank team worked with the government to craft a roadmap to ensure adherence to the EU Deforestation Regulation (EUDR), identifying key compliance gaps in Peru’s supply chains.
The experience offers four lessons for other countries: More World Bank
--------
NGOs and industry share worries over EU anti-deforestation law
By Sofia Sanchez Manzanaro | Euractiv
The looming implementation of an EU law aimed at making European supply chains deforestation-free has united industry, traders, farmers, and NGOs in concern.
Repeated delays from the European Commission in releasing enforcement guidelines for the new EU anti-deforestation rules (EUDR), just five months before they kick in, are causing worry across the agri-food sector and among environmental and human rights advocates.
The law affects commodities widely consumed in the EU, including cocoa, coffee, cattle, soy, and palm oil, impacting numerous importers, processors, retailers, and farmers globally.
Fears that small farmers in developing countries will be disproportionately affected have led the Global Coffee Platform (GCP), which includes organisations such as the Global Fund to End Modern Slavery, Heifer International, Rainforest Alliance, Slow Food, and Solidaridad Network, to urge the Commission to address outstanding issues in the law’s implementation.
The GCP endorsed a letter sent to the Commission on 26 July, also signed by organisations representing coffee growers around the world and the European Coffee Federation, which includes small and medium-sized processors as well as large companies such as Nestlé and Starbucks.
The stakeholder coalition urged the Commission to address their concerns by October.
“Our efforts to comply with the EUDR have revealed critical issues that threaten our ability to meet the regulation’s objectives without unintended consequences for smallholder coffee farmers and smaller companies,” the letter said. More at Euractiv
--------
EU regulation demands furniture makers prove wood source
Bobby Dalheim //Senior Editor of Case Goods and Global Sourcing
BRUSSELS – New regulation would require all companies selling certain products in EU-member countries to prove their supply chains do not contain any materials from deforested lands.
In June 2023, the EU enacted a policy requiring companies selling soy, beef, palm oil, wood and other products, in addition to any “derived” product – including furniture – to prove their products “do not originate from recently deforested land or have contributed to forest degradation.”
Specifically, wood products and furniture sold in Europe must be accompanied by a map of every forest the product sourced wood from, as well as a satellite analysis demonstrating those forests are deforestation-free.
Companies that cannot show their products adhere to this regulation will not be allowed to sell those products in any of the EU’s 27 member states. Companies had 18 months to implement the rule, making the deadline Dec. 30 of this year.
“As a major economy and consumer of these commodities linked to deforestation and forest degradation, the EU is partly responsible for this problem, and it wants to lead the way to solving it,” the EU wrote at the time.
The regulation has faced pushback from the U.S. and from countries including Australia, Brazil, Indonesia and Malaysia, which are seeking more time and clarification for implementation.
U.S. Trade Representative Katherine Tai, Agriculture Secretary Thomas Vilsack and U.S. Commerce Secretary Gina Raimondo told the EU in a letter that U.S. producers were having trouble preparing to comply with the rule.
“We, therefore, urge the European Commission to delay the implementation of this regulation and subsequent enforcement penalties until these substantial challenges have been addressed,” said the letter, dated May 30, first reported by the Financial Times.
With only six months before the law takes effect, the letter states that the EU hasn’t yet launched a system for producers to submit their documentation and “has not provided clear implementing guidance.”
In early July, an EU spokesperson said the union had received the letter and would reply.
In a letter to European paper producers, the EU acknowledged the concerns from the U.S. letter, per Reuters.
“We are hearing feedback from some stakeholders that preparation for implementation may be challenging,” this letter stated. “However, we also see encouraging signs in many sectors and countries working to align with EUDR (EU Deforestation Regulation) requirements.” Furniture Today
--------
Indonesia, GCC launches free trade agreement talks
JAKARTA, July 31 (Xinhua) -- Indonesia and the Gulf Cooperation Council (GCC) initiated negotiations for the Indonesia-GCC Free Trade Agreement (I-GCC FTA) at the Trade Ministry here on Wednesday.
The event was highlighted by the signing of a joint statement by Indonesian Trade Minister Zulkifli Hasan and GCC Secretary-General Jasem Mohamed Albudaiwi.
"Through the I-GCC FTA, Indonesia aims to strengthen trade relations while opening up mutually beneficial investment opportunities," the Indonesian trade minister said in his speech.
He added that the FTA is expected to boost exports of Indonesian commodities, such as motor vehicles, palm oil, jewelry, coffee, textiles, and electronics.
Jasem highlighted the significant potential benefits of the I-GCC FTA for both Indonesia and the Gulf countries, covering not only trade in goods but also services, customs, trade barriers, and small and medium enterprises.
"We want this trade agreement not only to increase trade figures but also to enhance economic cooperation in other areas. We also aim to open up opportunities for collaboration in new sectors, particularly Islamic economics," he said.
The GCC is a cooperative group of six countries: Saudi Arabia, the United Arab Emirates, Kuwait, Bahrain, Oman, and Qatar.
Last year, trade transactions between Indonesia and the GCC amounted to 15.7 billion U.S. dollars, with 6.2 billion dollars recorded from January to May this year Xin Hua/ CN
--------
Airlangga Says China Will Reopen Access to Indonesian CPO
Jakarta. Chief Economic Minister Airlangga Hartarto said on Tuesday that the Chinese government will reopen its markets for crude palm oil (CPO) and other agricultural commodities from Indonesia.
"The Chinese government has also pledged investments in the ‘green industry’, electric vehicles and batteries, the digital sector, and logistics,” Airlangga said.
His remarks came after he received a visit from Sun Haiyan, deputy minister of the International Liaison Department of the Communist Party of China (CPC), at his office in Jakarta.
According to Airlangga, bilateral trade between Indonesia and China was valued at $127.8 billion last year, in Indonesia’s favor.
"Of that amount, Indonesia’s exports to China stood at $64.9 billion, while imports from China totaled $62.88 billion," he said.
In the four consecutive years prior, Indonesia had suffered a trade deficit with China.
The CPC invited the Indonesian government and the Golkar Party to visit China to share knowledge about their free meal program.
President-Elect Prabowo Subianto plans to provide free meals for children and expectant mothers when he assumes office in October, as part of his efforts to combat stunting.
"China has implemented a similar program for 10 years,” Airlangga said. Jakarta Globe
CSPO Watch August 2024 Palm oil news
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