Headline News on Palm Oil. October 2021
OPINION - Europe wants to be ‘forest-positive’, but how to drive action on the ground?
he palm oil debate has focused on the industry’s negative impact on forests and biodiversity. Far less attention has been paid to workers, smallholder farmers, indigenous peoples and local communities. There is a need to humanise the conversation and ensure that palm oil delivers positive social and environmental impact on the ground. This was a key theme at this year’s European Sustainable Palm Oil Dialogue.
The conference convened representatives of consumer goods manufacturers, palm oil suppliers, certifying bodies, governments and NGOs. It avoided tricky conversations over sector-wide failures to meet 2020 No Deforestation, No Peat, No Exploitation (NDPE) commitments. Instead, it focused on how Europe can eliminate deforestation from key commodity supply chains and help build a “forest-positive” future.
About 80% of global deforestation is driven by agricultural expansion, and the EU is a major importer of forest-risk commodities such as palm oil, beef, soy, cocoa, maize, timber and rubber. Between 1990 and 2008, the EU consumed a third of globally traded forest-risk commodities, accounting for around 10% of worldwide deforestation linked to the production of goods and services. ChinaDialogue
Malaysia Sees Higher Palm Oil Output in 2022 as Workers Return
Malaysia will likely relax cross-border restrictions on foreign workers in the second half of 2022, a move that will ease the severe labor crunch in palm oil plantations that’s contributed to a global edible oil rally.
Crude palm oil output is expected to increase with improved production of fresh fruit bunches and a better oil extraction rate, the finance ministry said in a report released alongside the state budget Friday.
Palm, the most consumed edible oil, has been a leading driver of this year’s stunning rally in global vegetable oil markets. Malaysia’s production is set to drop to its weakest in five years as planters grapple with the worst-ever labor shortage in the second-biggest grower. A industry group representing 40% of palm plantations by area estimates that the low yields will last through March.
The continuation of the nation’s B20 biodiesel program for the transport sector, coupled with higher demand from India and China, will further support palm oil production, the finance ministry said. Malaysian palm oil futures have rallied about 70% in the past year after hitting a record high this month. Bloomberg
ASEAN upgrades ties with China, calls Myanmar part of 'family'
BANDAR SERI BEGAWAN, Oct 28 (Reuters) - The Association of Southeast Asian Nations (ASEAN) said on Thursday it has agreed with China to upgrade their relationship to a comprehensive strategic partnership, a day after reaching a similar deal with Australia.
Australia's clinching of the enhanced partnership was a symbolic win for Canberra in beating China to the first such deal with the fast-growing Southeast Asia region, which has become a strategic battleground between Beijing and Washington.
Hailing the agreement at a news conference, Brunei Sultan Hassanal Bolkiah, chair of ASEAN, was also asked about Myanmar's future attendance after its junta chief Min Aung Hlaing, who led a coup in February, was excluded from Asian summits this week.
"Myanmar is an integral part of the ASEAN family and their membership has not been questioned," he said. "ASEAN will always be there for Myanmar and we have continued to offer help through the implementation of the five-point consensus." Reuters
Indonesia - Indonesia FoLU Net Sink 2030 helps prevent earth's temperature rise
Jakarta (ANTARA) - The net carbon sink in the forestry and other land use (FoLU) sector will help prevent earth's temperature from rising by no more than 1.5 degrees Celsius, Environment and Forestry Minister Siti Nurbaya stated.
"The FoLU net sink will aid in maintaining earth's temperature to rise no more than 1.5 degrees Celsius," Nurbaya noted during the Climate Leaders Message event monitored virtually from Jakarta, Thursday.
In accordance with the document of Long Term Strategy for Low Carbon and Climate Resilience (LTS-LCCR) 2050, Indonesia will increase its ambition on GHG reduction, with plans to peak GHG emissions, with net sink in the FoLU sector by 2030.
The FoLU sector is one of the largest emitters in Indonesia, along with energy, waste, industry and agriculture.
Siti explained that THE Indonesia FoLU Net Sink 2030 is an implementation, mitigation, and climate adaptation agenda designed to relate to forests and land, including forestry activities and community participation in customary forests and mangroves. AntaraNews
Malaysia - COMMENT (Joseph Borrell) | The EU’s commitment to the Indo-Pacific region
COMMENT | The world’s centre of gravity is moving to the Indo-Pacific region, in geo-economic and geo-political terms.
Recently, the decision by Australia, the UK and the US to deepen their security and defence ties (the so-called Aukus group) has certainly triggered a lot of debate on the underlying dynamics in the region and how partners can best respond.
As the EU, we have a big stake in the future of the region and, we believe, a big contribution to make as well. That is why we published our own Indo-Pacific strategy last month.
Its central message is that the EU is ready to step up its engagement 'in' and 'with' the region, working on issues where we have long cooperated, such as trade and investment, but also expanding this to areas where there is scope to do more. MalaysiaKini
Indonesia - Jokowi’s proposed CPO export ban infeasible, say experts
JAKARTA: The government is considering banning the export of crude palm oil (CPO) to force the development of a downstream palm oil industry in the country, but experts say economic constraints keep a viable downstream sector a distant dream.
President Joko “Jokowi” Widodo said in a speech on Oct 13 that the government would “at some point” ban CPO exports so that the commodity could be processed into higher-value derivatives, such as cosmetics, food products and biodiesel for both domestic use and export.
However, experts, business leaders and regulators have said that high biodiesel prices, relatively low domestic CPO demand and international biodiesel trade barriers, among other issues, make it challenging for Indonesia to develop a full downstream palm oil industry. TheStarMY
Malaysian Ambassador willing to support SL’s rural communities
Ambassador of Malaysia to Sri Lanka Tan Yang Thai is willing to support the rural communities in Sri Lanka by allowing the unemployed youth of Sri Lanka to work in Malaysia, in the industry of palm oil cultivation.
The Ambassador of Malaysia to Sri Lanka said: “Malaysia is having a labour shortage, and they bring in workers from various other countries. This could be an opportunity to give our unemployed youth an opportunity to work abroad. Foreign employment brings the highest revenue to the country.”
The Ambassador recently met with a delegation from the Palm Oil Industry Association Sri Lanka (POIASL) to discuss the benefits of a collaborative approach towards uplifting Sri Lanka’s rural communities.
He shared experiences of Malaysia’s successful palm oil industry and discussed how their practices can also benefit Sri Lanka’s economy and the quality of life of the rural community. Palm oil cultivation in Malaysia has played a role in strengthening the country’s economy. He also emphasised the role that Sri Lanka’s palm oil imports played in strengthening the Malaysian economy. Moreover, he stated that Malaysia is willing to extend their co-operation to review the current landscape of palm oil in Sri Lanka. NationLK
Malaysia - The World’s Most Consumed Edible Oil Is Facing a Supply Crunch
Palm oil production in Malaysia is on course for its weakest showing in five years as planters grapple with the worst-ever labor shortage in the second-biggest grower, and the low yields are likely to last through March.
The country’s output may slide below 18 million tons this year, according to Nageeb Wahab, chief executive at the Malaysian Palm Oil Association, a growers’ group that represents 40% of palm plantations by area. That’s a drop of at least 6% from last year and the lowest annual volume since 2016.
Palm, the most consumed edible oil, has been a leading driver of this year’s stunning rally in global vegetable oil markets. Lower supplies in Malaysia and a crop disaster in Canada, the top grower of canola, have coincided with pent-up demand as economies reopen. Palm oil has repeatedly notched fresh records, while canola climbed to an all-time high and soyoil hit a 13-year peak in May.
“Even before the pandemic we were already short of workers -- mainly harvesters -- but it was never this bad,” Nageeb said by phone from Kuala Lumpur. “The shortage is becoming worse month by month. This is a historic crunch of workers and it’s causing a multi-year shortfall in production.” Bloomberg
Malaysia/Indonesia - Malaysia's readiness to bring in 32,000 foreign workers is subject to MOUs
KUALA LUMPUR: Malaysia’s readiness to grant special approval to bring in 32,000 foreign workers, including from Indonesia, to ease the labour shortage in the plantation sector, is subject to memorandum of understanding (MOUs) that will be agreed upon soon.
The Ministry of Plantation Industries and Commodities (MPIC), in a statement, said for Indonesia, sending workers to Malaysia would benefit both countries.
“The decision is considered a win-win situation. For Indonesia, their workers will get jobs and good income while Malaysia can solve the problem of labour shortage which has resulted in huge losses to the oil palm industry,“ it said
The statement was issued at the end of Malaysian Plantation Industries and Commodities Minister Datuk Zuraida Kamaruddin’s (pix) three-day working visit to Jakarta today.TheSunDaily
Malaysia lifts migrant worker ban after 16 months
[KUALA LUMPUR] Malaysia will let foreign workers back into the country after an almost 16-month hiatus due to the Covid-19 pandemic, its prime minister said on Friday.
The agreement reached by the government's pandemic taskforce on foreign workers has been hotly anticipated by vital sectors like palm oil plantations and rubber glove manufacturing which rely on migrant labour.
"The Special Committee on Pandemic Management today agreed with the proposed standard operating procedures for the entry of foreign workers into Malaysia, especially to meet the needs of the plantation sector," Prime Minister Ismail Sabri Yaakob said in a statement. BusinessTimesSG
Indonesia - Biodiesel to Cut Indonesia's Oil Fuel Import by $3.9b in 2021
Jakarta. Indonesia is on course to cut diesel fuel imports worth $3.9 billion this year thanks to the country's growing biodiesel industry, validating President Joko "Jokowi" Widodo's decision to rely on biodiesel for national energy security.
"If we can produce our biodiesel in Indonesia…our imports will drop drastically," Jokowi said during the inauguration of the biodiesel factory owned by Jhonlin Agro Raya on Thursday.
Indonesia's current account has been in deficit in the past decade, partly because it has to import oil fuel like kerosene and diesel from abroad to meet its growing domestic demand. JakartaGlobe
Indonesia consumed 6.64 mln kilolitres of biodiesel during Jan-Sept
JAKARTA — Indonesia consumed 6.64 million kilolitres of unblended biodiesel made from palm oil in the January-September period, Dadan Kusdiana, a senior energy ministry official, said in a virtual briefing on Friday.
Consumption during the nine months was about 72% of the government full 2021 consumption target of 9.2 million kilolitres. (Reporting by Bernadette Christina Munthe; Writing by Fransiska Nangoy; Editing by Christian Schmollinger) FinancialPost
Rolls-Royce successfully carries out test flight on 100% SAF
OCT 22, 2021
Rolls-Royce successfully carries out test flight on 100% SAF
news item image
Rolls-Royce has carried out a successful test flight of its 747 Flying Testbed aircraft using 100% Sustainable Aviation Fuel (SAF) on a Trent 1000 engine.
Working with Boeing and World Energy the aircraft flew from Tucson airport in Arizona, passing over New Mexico and Texas, with a Trent 1000 engine running solely on 100% SAF while the remaining three RB211 engines ran on standard jet fuel.
Initial indications confirm there were no engineering issues, providing further proof of the fuel’s suitability for commercial use.
Rolls-Royce has continued to pioneer the adoption of 100% SAF. It confirmed that all of its Trent engines will be compatible with 100% SAF by 2023.
The flight was carried out in close collaboration with Boeing, which provided technical support and oversight on aircraft modifications and assurance the aircraft systems would operate as expected with 100% SAF. World Energy, the world’s first and America’s only commercial-scale SAF production company, provided the low-carbon fuel for the flight. BiofuelsNews
Malaysia - MPOCC: Promote CSPO to bridge gap between oil and fat production and consumption
KUALA LUMPUR (Oct 22): There is a huge gap between oil and fat production and consumption as the global population reaches 9.7 billion by 2050, while the food market is expected to reach US$9.11 billion by 2025, hence putting a strain on food production, said the Malaysian Palm Oil Certification Council (MPOCC).
Chief executive officer Mohammad Hafezh Abdul Rahman said based on the current trend, growth in production could not match growth in consumption.
“Global palm oil production, for example, has not been able to match global consumption since 2019. Palm oil is integral in the global supply chain dynamics, so the way forward is to promote the use of certified sustainable palm oil (CSPO),” he said in a slide presentation during the Malaysian Palm Oil Council’s (MPOC) Pointers on Price Trends online seminar. TheEdgeMarkets
EU/Indonesia - EU hold talks with Indonesia over future of palm oil
EU Vice-President Frans Timmermans, who is in charge of the EU Green Deal, met with Indonesian officials with the future of palm oil exports high on the agenda.
Timmermans met with President Joko Widodo and key Indonesian Ministries (Energy, Economic Affairs, Agriculture and Foreign Affairs), as well as the Secretary General of ASEAN.
The meetings were principally about the upcoming UN climate meeting in the UK and Indonesia’s emissions reductions commitments on fossil fuels.
The meetings also discussed the EU’s intentions on trade and palm oil – particularly whether the EU will recognise Indonesia’s Sustainable Palm Oil certification in a trade agreement or in its proposed measures on deforestation.
Although EU officials have reaffirmed Indonesia’s importance for EU trade in the region, and the role of palm oil in addressing poverty, Brussels has not eased Indonesia’s concerns.
The EU has a history of measures setting up trade barriers against Indonesian palm oil and other exports, whether it is the palm renewables ban, illegal antidumping tariffs on biodiesel, or inaction on palm oil labelling. BiofuelsNews
Biofuels - Counting the cost of shifting to renewables
In recent years, renewable technologies have reached technical readiness, providing commercially viable solutions for the energy transition – some backed by over 15 years of research and development.
But as legislation and technology for low-carbon energy industries converge, a new emerging market has been created – the renewable fuels market.
This market lies at the crossroads of two welldeveloped and formerly independent global industries – agriculture and energy. The $5 trillion (€4.2 trillion) agricultural industry has the expertise to process large quantities of biological products.
While the $3.3 trillion (€2.8 trillion) energy industry has the know-how to produce transportation fuels.1
The integration of these industries means we now have technologies that can convert bio-based feedstocks such as animal fats, used cooking oils, vegetable oils, and greases (FOGs) into fuels that can power the world’s vehicles. The shift to renewable fuels is taking off. As of 2019, the market is estimated at $160 billion (€135 billion). BiofuelsNews
Indonesia - President targets raising biodiesel production to save forex
Jakarta (ANTARA) - Domestic biodiesel production will reduce diesel imports in order to save up to Rp56 trillion (almost US$4 billion) of foreign exchange in 2021, according to President Joko Widodo.
"If we can produce our own biodiesel here and use it as a mixture for diesel, our imports will also drop drastically. In my record/note, in 2020, (we) saved foreign exchange of Rp38 trillion (almost US$2.7 billion). It is estimated that foreign exchange of Rp56 trillion (almost US$4 billion) will be saved in 2021," the head of state noted in South Kalimantan on Thursday.
Indonesia produces bountiful quantity of crude palm oil that can be used to make biodiesel. According to the president, the potential for crude palm oil production in Indonesia reaches 52 million tons per year. He expected that the immense resource could be processed into other products, including biodiesel. Thus, Indonesia can lower fuel imports and help to boost energy security.
Suppliers and other industries will also be required in the process of transforming crude palm oil into biodiesel, thereby increasing the possibility to create several new jobs. The president emphasized that job creation in the downstreaming of natural resources was an important goal to offer economic benefits to the community. AntaraNews
Malaysia - Sime Darby Plantation to develop two new biogas power plants with Cenergi
KUALA LUMPUR (Oct 21): Sime Darby Plantation Bhd’s (SDP) subsidiary SDP Renewable Energy Sdn Bhd (SDPRE) plans to develop two new biogas power plants with the largest grid-connected palm oil mill effluent (POME) biogas developer in Malaysia, Cenergi SEA Bhd's wholly-owned subsidiary Cenergi RE Sdn Bhd (Cenergi).
In a statement on Thursday, SDP said its unit has signed a term sheet with Cenergi on Oct 9, 2021 to co-develop the plants in SDP's Malaysia operations at the Sungai Dingin estate in Kedah and Kok Foh estate in Negeri Sembilan.
To date, Cenergi has developed three biogas power plants for SDP's palm oil mills which are currently operational, while two others are under construction with targeted completion in November 2021 and mid-2022, it said.
SDP's group managing director Mohamad Helmy Othman Basha said the group has been energetically pursuing renewable energy solutions in order to meet its emission reduction targets.
"This latest partnership will accelerate our progress and we are well on track to reach our reduction target of 40% by 2030. TheEdgeMarkets
Global finance industry sinks $119bn into companies linked to deforestation
Global banks and asset managers have extended a total of $119bn of financing to 20 major agribusinesses linked to deforestation in the five years since the Paris agreement was brought into force, according to an investigation by the Global Witness campaign group.
Leading global lenders JPMorgan, HSBC and Bank of America were among the biggest funders of the companies, which included Brazilian meat producer JBS, each striking dozens of funding deals between 2016 and 2020, the research found.
Deals included almost $730m-worth of financing for Olam International, one of the world’s largest food ingredient suppliers, and its subsidiaries from JPMorgan via revolving credit facilities, the data showed. Olam International is under investigation by the Forest Stewardship Council for allegedly destroying rainforest in Gabon.
Deforestation is a major source of carbon emissions, and tackling the issue is expected to be among the topics under discussion by global negotiators at the upcoming COP26 UN climate summit in the UK. FinancialTimes
Ghana - President inspects 2,400MT capacity Oil Palm Mill under 1D1F
President Nana Addo Dunkwa Akufo-Addo has inspected a 2,400MT capacity Central Oil Mills Company Limited at Jukwa Mfuom and Ansamanso in the Hemang -Lower- Denkyira District of Central Region.
The factory at Asamanso and the expansion work at Mfuom in the Heman-Lower-Denkyira District are about 95 percent and 90 percent completed respectively.
They are expected to be fully completed by Tuesday, November 30, 2021.
The fully owned Ghanaian agro-processing company incorporated on August 28, 2010 under the Company Laws of Ghana,1963 (Act 179), is estimated at GHS14,000,000.00.
It is into Oil Palm Development and Palm Oil Processing and is a beneficiary of Government’s industrialization programme, One District One Factory (1D1F) with GHC12,000,000.00 Medium-Term Loan Facility support from the Ghana Export-Import Bank.
The project will create a minimum of 200 direct and 300 indirect jobs within two years and increase value addition with market opportunities for several oil palm farmers in the Hemang-Lower-Denkyira and its adjoining districts.
Buyers from South Africa, Italy, Netherlands and Nigeria are already in discussions with the company for export of finished products to generate foreign exchange for the country. NewsGhana
Japan - ANA launches new SAF flight initiative
All Nippon Airways (ANA) has launched a new SAF initiative to reduce CO2 emissions.
Designed to promote Sustainable Aviation Fuel (SAF) by collaborating with leading companies in this area, the programme is the latest effort by ANA to decrease its carbon footprint.
The SAF Flight Initiative aims to work with leading partners across a range of industries, supporting their efforts to reduce emissions in the value chains as well as to expand the production and use of SAF.
Nippon Express Co, Kintetsu World Express and Yusen Logistics Co have announced that they will participate in the SAF Flight Initiative.
ANA conducted a SAF-powered cargo flight with these three major logistics and cargo companies on September 29, the first flight by a Japanese airline to conduct a joint operation using SAF.
“ANA has long been a leader in advancing sustainability in the airline industry, and this fuel initiative further demonstrates our ability to meet the demands of society. As SAF will play a major role in reducing carbon emissions, we will continue looking for ways to accelerate its adoption," said Yuji Hirako, president & CEO of ANA. BiofuelsNews
UK’s net zero strategy for reducing carbon emissions includes SAF ramp up
The UK government has announced £440 million (€521 million) in new funding for green construction projects as part of another raft of net zero announcements.
The net zero strategy sets out how carbon emissions will be reduced across the economy as part of the government’s net zero goals.
It includes £180 million (€213 million) for the development of plants which can create sustainable aviation fuel.
The government said the fuel, which produces more than 70% less carbon emissions than traditional jet fuel over its lifetime, could account for 10% of aviation fuel by the end of the decade.
Funding of £140 million (€165 million) for two new carbon capture clusters has also been announced. The clusters, which will be used for hydrogen production, will be located on the border of north Wales and Merseyside and in north-east England.
Prime Minister Boris Johnson said: “The UK’s path to ending our contribution to climate change will be paved with well-paid jobs, billions in investment and thriving green industries – powering our green industrial revolution across the country. BiofuelsNews
US CONGRESS BID TO END ILLEGAL DEFORESTATION WELCOMED BY MALAYSIAN PALM OIL
US CONGRESS SEEKS TO REDUCE ILLEGAL DEFORESTATION GLOBALLY
Democrats in the U.S. Congress on Wednesday were set to unveil legislation to reduce illegal deforestation globally by restricting the trade of certain agricultural commodities, such as palm oil and cattle, produced with those methods.
The news report from Reuters further stated that:
The "FOREST Act of 2021," introduced simultaneously in the Senate and House of Representatives by Democratic Senator Brian Schatz and Representative Earl Blumenauer, could have a major impact on trade from nations such as Brazil and Indonesia, but faces a difficult climb in the deeply divided Congress.
In these times of climate crisis when nations and corporations seek to reduce the environmental impacts of consumption, the US proposal feels like a vindication for Malaysian palm oil.
PROPOSED US LEGISLATION A JUSTIFICATION FOR MSPO
This new initiative to reduce deforestation, specifically illegal deforestation, indirectly supports the raison d'être or justification for the existence of the MSPO. To understand this point, some background information on the palm oil industry in Malaysia is needed. MPOCC
UK - Why a UK law to criminalise deforestation won’t save the Amazon
he dizzying reach of global supply chains means consumers are generally clueless about the origins of the ingredients in the products they buy, and therefore unable to have any impact on the habitat destruction taking place in their name. The UK, ahead of the EU and the US, will propose legislation this week to make companies more responsible for their products, but campaigners are concerned it will do little to stop deforestation in line with climate commitments.
“The UK will go further than ever before to clamp down on illegal deforestation and protect rainforests,” Boris Johnson’s administration announced last November – in reference to new laws being introduced through its Environment Bill.
The (long-delayed) bill passes back to the Commons from the House of Lords this week. And, in its current form, includes a ban on products that violate deforestation laws in their country of origin. This means UK companies would have to ensure that, not just timber but “forest risk” commodities – potentially including beef, soy and palm oil – have been sustainably sourced.
The proposed UK legislation will be a global first, but there are concerns that regulation limited to illegal deforestation will not put an end to deforestation overall, says Debbie Tripley, director of environmental policy and advocacy at WWF-UK. NewStatesman
Sierra Leone - Goldtree can now offer RSPO certified palm oil products
Goldtree S.L. Ltd is happy to announce that, as of 13th of July, its operations has achieved certification to the acclaimed Roundtable on Sustainable Palm Oil (RSPO) from internationally recognized third-party certification body SCS Global Services (SCS). This means that Goldtree can offer palm oil products that are officially certified under the standards of the RSPO. By adhering to these standards, Goldtree demonstrates that its palm oil addresses various aspects of sustainability, including the protection and enhancement of the natural ecosystems our plantations are located in, as well as protecting the human rights of the local communities we work with, while operating our business in an ethical and transparent manner.
Additionally, 4,983 smallholder farmers, who are members of the Ngoyaï Gbaayegie Farmer Based Organisation FBO) that supply Goldtree with Fresh Fruit Bunches (FFBs) used in the production of our palm oil products, also achieved RSPO certification. FeedStrategy
Indonesia plans to 'hit the brakes' on raw commodity exports - president
BEBATU, Indonesia, Oct 19 (Reuters) - Indonesia is planning to "hit the brakes" on the export of all raw commodities in an effort to attract investment in onshore resource processing and create jobs, President Joko Widodo said on Tuesday.
Indonesia has banned a number of unprocessed ore exports including nickel, tin and copper in a bid to encourage downstream industries, including producing batteries for electric vehicles and aluminum industry, among others.
The government is currently conducting a study for the downstreaming of other commodities with a long-term goal of no longer selling just raw materials, the president, who is popularly known as Jokowi, said in an interview in the village of Bebatu on Borneo island.
A new policy would hopefully emerge next year, he said. Nasdaq
Nigeria - Federal Government to unveil new agriculture policy
Following the expiration of the Agricultural Promotion Policy (APP) that lasted from 2016-2020, the Federal Government is in the process of developing another policy termed National Agricultural Technology and Innovation Policy (NATIP) to cover the 2021-2025 period.
NATIP is developed to provide an integrated approach to agricultural development in terms of access and application of improved inputs, improve the linkage between agricultural research and training institutions.
The policy, according to the government, would also enhance the provision of input to farmers, improve agricultural mechanisation, extension services, provide rural Infrastructure and increase access to affordable funding.
It would also ensure climate change management and sustainable agriculture, nutrition, and security of agricultural land and investments. GuardianNG
Cameroon: BEAC expects palm oil production to drop in Q4-2021
(Business in Cameroon) - In Q4-2021, palm oil production would drop in Cameroon, according to the quarterly business survey “ test prévisionnel de conjoncture” recently published by the Bank of Central African States (BEAC). According to the survey, the drop will be caused by “the [long] oil palm production cycle in an unfavorable environment marked by land problems, legal proceedings against some producers and palm nut thefts (by surrounding communities).”
The problems listed by the BEAC aside, the main factor that could contribute to the drop in palm oil production in Cameroon is the Anglophone crisis raging since 2016. Indeed, the Southwest, which is one of the two regions affected by that crisis, hosts the plantations and equipment of the two state-owned agribusiness firms (CDC and Pamol Plantations Plc) that are among the main palm oil producers in the country.
According to a report published by the Commission for the Rehabilitation of Public and Para public companies (CTR), between 2016 and 2018, Pamol Plantations Plc’s turnover dropped by 83.6% due to the said crisis. At the same time, CDC’s palm oil production branch lost 60.9% of its turnover. BusinessInCameroon
Honduras - PALM OIL ZERO-DEFORESTATION AGREEMENT RATIFIED IN HONDURAS
On 14 October 2021 government institutions, private companies and producer organizations from the national palm oil sector, Solidaridad and other civil society organizations ratified the palm oil zero-deforestation agreement in Honduras.
The agreement is a result of a public-private partnership facilitated by Solidaridad to promote economic and social development with palm oil companies and small producer organizations whilst restoring and conserving the biodiversity of vulnerable ecosystems such as the Mesoamerican Barrier Reef System.
ZERO-DEFORESTATION COMMITMENT RENEWED IN THE NATIONAL ASSEMBLY OF THE HONDURAN PALM OIL SECTORSolidaridad gathered representatives of the palm oil sector in a morning session to share the objectives of the ratification of the agreement, the implementation plan and progress made to date.
José Edas Mejía, President of FENAPALMAH, the national palm oil federation which comprises 7,500 of Honduras’ 17,000 palm smallholders, stated, “This is a historic moment. For the first time we can clearly see the fruits of the efforts of the palm oil sector in Honduras, in alliance with the government and the international aid sector.” Solidaridad
Indonesia - Palm oil processor Apical Group inks sustainability-linked loan
Indonesian agribusiness Apical Group has secured its first sustainability-linked loan, borrowing US$750mn from a consortium of 22 banks led by First Abu Dhabi Bank (FAB).
Apical, a major processor of palm oil, says the transaction is “one of a few” deals within the sector where borrowing is linked to sustainability performance. It says incentives will be awarded in relation to predetermined targets across its supply chain.
The company says metrics are assessed by Environmental Resources Management (ERM), a London-based consultancy firm that has previously worked with Deutsche Bank in Asia and Africa.
The loan is structured as a two-year revolving credit facility as well as a four-year term loan. It was issued to two Apical units – Apical Middle East and AAA Oils & Fats – and will be used to finance working capital and capital expenditure requirements. GlobalTradeReview
Netherlands - King of the Netherlands opens country’s first bio-LNG plant
Willem-Alexander, King of the Netherlands, officially opened the country’s first bio-LNG plant on 14 October.
The plant was developed by Nordsol, Shell and Renewi and will produce an estimated 3.4 kilotons of bio-LNG annually – enough for 13 million kilometres of driving - preventing approximately 14.3 kilotons of fossil CO2 from entering the atmosphere.
Nordsol’s bio-LNG is built on Renewi’s site in Amsterdam Westpoort. This facility is, in part, subsidised by the EU (20%) as part of its strategy to decarbonise road transport.
The three companies each have their own part in the production of bio-LNG. The recycler then processes the waste and converts it into biogas in its fermenters. Nordsol’s new bio-LNG plant reprocesses the biogas into bio-LNG. Shell makes this available for its customers at LNG service stations in the Netherlands. Additionally, during production, CO2 is removed from the biogas and liquefied for use in greenhouses. BioenergyInsight
Japan to accelerate green initiatives while ensuring emerging Asia is not left behind
TOKYO - Japan's energy security is dependent on that of countries across Asia, and Tokyo hopes to play a leadership role in helping emerging nations in the region shun dirty coal and reduce their carbon emissions, Japan's outgoing industry minister told an environment conference here.
"We need to cooperate and establish mechanisms to attract investment and funding to ensure that no single country in Asia is left behind," Mr Hiroshi Kajiyama said at the first annual Asia Green Growth Partnership ministerial meeting on Oct 4.
Japan has earmarked US$10 billion (S$13.6 billion) in this regard for the Asia Energy Transition Initiative to help Asean, Central Asia and the Middle East move away from fossil fuels.
Tokyo hosted its first-ever decarbonisation expo at the Tokyo Big Sight last month, featuring hundreds of companies, including Tokyo-based Blue Biomass Fuel.
The company acquires palm oil from Malaysia plantations, which is then shipped to Japan for the conversion into usable electricity.
Mr Satoru Koizumi of the firm's corporate planning division told The Straits Times that Blue Biomass Fuel has worked with insurer Sompo to create what is believed to be Japan's first insurance contract for biomass fuel procurement. StraitsTimes
Indonesia conducts test flight using jet fuel mixed with palm oil
JAKARTA, Oct 6 (Reuters) - Indonesia conducted its first test flight using jet fuel partially from palm oil on Wednesday, a senior minister said, as the country plans to commercialise the fuel as it seeks creative ways to use the edible oil domestically.
The plane flew more than 100 km (62.14 miles) from the capital Jakarta to neighbouring city, Bandung.
"Indonesia, as the largest producer, of course needs to innovate the use of palm oil, including in the development of biodiesel, bio jet fuel and also continuing the D100 program," economic minister Airlangga Hartarto told a virtual conference, referring to diesel made entirely from palm oil developed by state oil company Pertamina.
Indonesia currently has a mandatory biodiesel programme with 30% palm oil content known as B30. The government is keen to expand the use of the vegetable oil for energy and slash fuel imports. Reuters
Marks & Spencer pledges to be net-zero by 2040
Marks & Spencer has pledged to be net zero by 2040.
Its timeline includes a 34 percent reduction in carbon emissions by 2025, a 55 percent reduction by 2030, and finally net zero status by 2040.
Part of the company’s decarbonisation process includes a commitment to zero deforestation in palm oil and soy sourcing and obtaining more sustainable fibres by 2025.
The retailer has also pledged to support its Select Farm partners in lowering their carbon footprint with a five-year Farming with Nature initiative.
This is a reset from Marks & Spencer’s original Plan A scheme, launched in 2007. CEO Steve Rowe spoke to shareholders explaining the decision. In “resetting Plan A with a singular focus” Marks & Spencer can “drive the delivery of net zero across our entire end-to-end supply chain”, he said, adding: “this is not a far-away promise; we must act now to rapidly cut our footprint.” FashionUnitedUK
Mars Pledges Fresh Climate Action to Achieve Net Zero Emissions Across Full Value Chain
The company sets new science-based climate target to achieve net zero greenhouse gas (GHG) emissions across its full value chain by 2050, including all scope 3 emissions (as defined by SBTi) such as those created by agriculture and suppliers, through to emissions from consumers using its iconic household brands such as Ben's Originals, M&M's & Royal Canin.
The new pledge accelerates the existing long-term goals Mars set reducing absolute emissions from its entire business footprint, eliminating deforestation from its supply chain, and transitioning to 100% renewable energy. Executive pay will be strongly linked to climate action and the 20,000+ suppliers in the Mars value chain are being challenged to step up and set their own commitments.
Mars CEO Grant F. Reid says net zero ambitions can only be "fit for purpose" by covering the entire GHG footprint – warns industry that long-term targets must not be an excuse for "inaction and delay."
It comes as the company's largest brand, Royal Canin, commits to become certified carbon neutral by 2025, embarking on a major new initiative to reduce greenhouse gas emissions and take immediate climate protection action. PRNewswire
Sri Lanka - Indonesian Ambassador signals future collaboration for sustainable agriculture during his visit to Watawala Plantations
The Ambassador of Indonesia, H.E.I Gusti Ngurah Ardiyasa recently paid an official visit to Watawala Plantations, one of Sri Lanka’s largest, and pioneering plantations, within the agricultural industry.
On the 21st of September, the Ambassador together with Mr Rasyid Mahmuddin, First Secretary at the Embassy of Indonesia in Colombo, visited the plantation on a special invitation extended by Watawala Plantations. The visit was organised to observe the field and the processing center operations at the Watawala plantation are aligned towards the concept of environmental sustainability, as well as the initiatives were taken in implementing and obtaining Roundtable on Sustainable Palm Oil (RSPO) certification.
As countries across the globe, continue to look at holistic approaches to implement sustainable agricultural practices, this has created a stronger need for innovation within the agricultural industry. Palm oil cultivation plays a vital role in supporting the economic development and livelihood of many local communities in Sri Lanka. Adaderana
Thailand - Time to fix Oil Fuel Fund
The Energy Policy Administration Committee (Epac) announced yesterday that it would cap the price of diesel at 30 baht per litre. Such a move was inevitable and is welcomed despite many critics questioning whether it will really benefit consumers.
Diesel is considered a strategic energy as it has been used in the supply chain -- mainly for logistics -- meaning its price affects the cost of goods.
Intervening in energy and oil prices is a complex issue as it involves many taxes and subsidies.
To keep the diesel price at filling stations at a fixed level, Epac has done the right thing in deciding to cut the Oil Fuel Fund's contribution to palm oil additives, which have been used to create diesel blends such as B7, B10 and B20.
The subsidy for B7 will be reduced from 1 baht to 0.1 baht per litre this month. Epac also approved the reduction of the biodiesel (B100) mix of B7 (7%) and B10 (10%) to B6 (6%), effective from Monday. As a result, only B6 and B20 will be available at filling stations.
The policy reflects how Epac has finally taken heed of critics who have slammed the energy ministry for using too much money from the Oil Fuel Fund to subsidise energy crops such as palm oil and ethanol, despite the price per unit of this alternative energy being expensive. BangkokPost
India - Roadmap for implementing palm oil scheme finalised: Arunachal CM
Itanagar, Oct 5 (PTI) Arunachal Pradesh Chief Minister Pema Khandu on Tuesday said the state has finalised the roadmap for implementing the ambitious National Mission on Edible Oils-Oil Palm (NMEO-OP) and it will be implemented soon.Speaking at the ‘Business Summit for North Eastern States’ on the national mission at Guwahati, he said Arunachal Pradesh, geographically the largest state in North East, has about 1.33 lakh hectares of land feasible for oil palm cultivation as assessed by a central team in 2019.“Based on the assessment, we have identified the lands, farmers and developers. We will go full swing in implementing the mission very soon,” Khandu said.He termed the summit as a game-changing platform for the Northeast and hailed the central government for focusing on sectors that would usher accelerated development in the region, according to a CMO statement.The state already has about 4,250 hectares under oil palm cultivation, the chief minister said.“Farmers didn’t expand their cultivation saying there were no processing factories while the private companies said without expansion of cultivation sites establishment of factories wasn’t feasible. This cost an earlier scheme. But under the new National Mission things have changed. Under it both our farmers and private investors will be in a win-win situation,” he said.The Centre has rolled out the NMEO-OP with an outlay of Rs 11,040 crore. Nyooz
India - Assam Hosts Business Summit To Attract Investment For Making NE A Palm Oil Production Hub
The central government’s palm oil mission envisages expanding oil palm plantation in the country by another 6.5 lakh hectres out of which 3.28 lakh hectres is proposed in the North Eastern states.
Plans are afoot to expand palm oil cultivation in Assam to 17 more districts and expanding the acreage by another 1500 hector of land, Assam Agriculture Minister Atul Bora disclosed on Tuesday at a business summit organized in Guwahati to attract investors to the North Eastern states.
Presently farmers in two districts of Assam –Goalpara and Kamrup– are engaged in oil palm cultivation.
Addressing the summit, Union Agriculture Minister Shri Narendra Singh Tomar said that under the central government’s Palm Oil Mission, with a total outlay of Rs 11,040 crore, plans are afoot to bring 3.28 lakh hectres in North Eastern states under palm oil cultivation over the next five years and making the region a major palm oil hub. The central government mission envisages expanding oil palm plantation in the country by another 6.5 lakh hectres with rest of the 3.22 lakh hectres to be spread across different states. OutlookIndia
U.S. Congress Democrats target palm oil, beef trade in deforestation bill
WASHINGTON/SINGAPORE, Oct 6 (Reuters) - Democrats in the U.S. Congress on Wednesday were set to unveil legislation to reduce illegal deforestation globally by restricting the trade of certain agricultural commodities, such as palm oil and cattle, produced with those methods.
The "FOREST Act of 2021," introduced simultaneously in the Senate and House of Representatives by Democratic Senator Brian Schatz and Representative Earl Blumenauer, could have a major impact on trade from nations such as Brazil and Indonesia, but faces a difficult climb in the deeply divided Congress.
Under the Democrats' bill, companies would have to improve their tracking of supply chains for certain commodities, especially palm oil, cocoa, soy and cattle products, as well as rubber and wood pulp, to prove they come from areas that have not been illegally logged. Imports falling short of the standard would be blocked and companies would face U.S. legal action and fines.
"Deforestation is continuing to accelerate," Schatz said in a telephone interview, adding, "It's time to use the economic and political power in the possession of the United States" to reverse that trend. Reuters
UK - Is the ‘golden age of greenwashing’ ending?
Will legally binding guidance from the CMA, coming into force in January 2022, shatter the greenscreen, and how can businesses prepare? Lisa Jones asks
The term ‘greenwashing’ was coined by environmentalist Jay Westervel in 1986 to describe a hotel’s ‘environmentally friendly’ towel reuse policy, when expanding in distinctly unfriendly ways.
It refers to a marketing tactic of giving a misleading impression of environmental credentials, of hiding behind false, vague, exaggerated or unsubstantiated claims. And it covers a sliding scale from British Petroleum coining the phrase ‘carbon footprint’ for an advertising campaign and a green flower logo rebrand, to insidious, woolly claims like ‘natural’, ‘earth-friendly’ or ‘ethical’.
With 57% of UK millennials willing to spend more on environmentally friendly groceries now, the problem has grown commensurately with conscious consumer demand, such that Greenpeace recently stated baldly: “We’re living in a golden age of greenwash”, branding it “our Pied Piper to climate doom”. SpecialtyFoodMagazine
Mars overhauls climate action to achieve net-zero while executive pay will be tied to emission reductions
5 Oct 2021 --- Mars is ramping up its efforts to achieve net-zero greenhouse gas (GHG) emissions across its entire value chain by 2050, aligning with the most ambitious aim of the Paris Agreement to limit global temperature rises to 1.5 °C.
The confectionery giant sets its new science-based climate target, including all emissions such as those created by agriculture and suppliers, through to emissions from consumers using brands like Ben’s Originals and M&M’s.
This updated pledge accelerates the existing long-term goals Mars has set to reduce absolute emissions from its entire business footprint, eliminating deforestation from its supply chain, and transitioning to 100% renewable energy.
It follows findings in the July Intergovernmental Panel on Climate Change (IPCC) report, which reinforced the urgency of achieving net-zero globally to prevent the worst impacts of global warming – a critical focus of next month’s COP26 Climate Conference in Glasgow. FoodIngredientsFirst
Indonesia - Palm oil firms benefit from sky-high global energy prices
Short energy supply and the approaching winter in Europe are spurring demand for fuel, much to the benefit of Indonesian crude palm oil (CPO) exporters.
The head of the Finance Ministry’s Fiscal Policy Agency (BKF), Febrio Kacaribu, said the European energy crisis was expected to have a positive short-term impact on Indonesia, as it boosted export opportunities.
“With structural reforms, [we] hope part of the export profits will flow to investments and create jobs,” he said during a BKF media briefing on Friday. European countries currently need “energy supply certainty” in view of a colder-than-expected winter, Febrio said, causing a commodity price hike in the last month or two.
Malaysian Minister Urges East Malaysian Palm Oil Companies to use FEPO to maintain Global Competitiveness
KUALA LUMPUR: The government has urged East Malaysian palm oil companies to consider implementing the East Malaysia Crude Palm Oil Futures Contract (FEPO) in their risk management strategy to remain globally competitive.
Minister of Plantation Industries and Commodities Datuk Zuraida Kamaruddin said the establishment of FEPO in Sabah and Sarawak will elevate the Malaysian palm oil industry to greater heights, especially in setting benchmarks for the global palm oil price.
The launch of FEPO in East Malaysia, the 45 percent contributor to last year’s crude palm oil (CPO) total production, is therefore timely for the development of the palm oil industry in Sabah and Sarawak.
“Companies in both states (can) hedge on the opportunity to market their crude palm oil directly to Bursa Malaysia Derivatives and save on the transportation cost before exportation,” she said in her pre-recorded special address at the (FEPO) Virtual Ceremony Launch 2021 today.
Likewise, she said countries neighbouring Sabah and Sarawak such as China can now purchase palm oil in East Malaysia instead. TheSunDaily
Pakistan - Govt To Reduce Import Bill Of Food Items: State Minister
FAISALABAD, (UrduPoint / Pakistan Point News - 3rd Oct, 2021 ) :State Minister for Information and Broadcasting Farrukh Habib said that government has decided to bring maximum land under plough to reduce import bill of food items.
Addressing a PTI Workers' Convention at Model Colony No.2 at Sitiana Road here on Saturday night, he said that Pakistan had 220 million acres of land but crops were being cultivated over only 50 million acres. He said that PTI government had decided to bring maximum land under cultivation of various crops to cater domestic food requirements. In this connection, olive and palm oil trees were being planted over huge area to reduce import bill of edible items. The government had also earmarked Rs.1 billion for this project and now Pakistan will soon get place among top 10 countries of the world where palm oil and olive trees were cultivated at a large scale.
Farrukh Habib said that Prime Minister Imran Khan was committed to transform Pakistan into a welfare state on the pattern of Riyasat-e-Madina where basic amenities would be provided to the masses at their door steps. UrduPoint
EU - Macron shamed for ‘opportunistic' EU farming policy 'This is protectionism at its worst'
EMMANUEL Macron's double-standards when it comes to farming have been exposed by a Brussels-based policy analyst - who accused the French President of pushing for tough restrictions on how land is used in poorer countries while adopting a "protectionist" stance when it comes to his own country.
The French president is pushing for tough restrictions on how land is used in poorer countries while adopting a “protectionist” stance when it comes to his own country. Pieter Cleppe, a research fellow with the think tank Property Rights Alliance, was commenting after the European Union published its draft anti-deforestation law, intended to stop beef, palm oil and other products linked to deforestation from being sold with the bloc’s single market.
However, Mr Cleppe suggested the net effect would unfairly penalise poor nations - and could actually do more harm than good.
He told Express.co.uk: "French President Emmanuel Macron has been one of the driving forces behind this push for new EU protectionism.
“Apart from the matter that palm oil producers in poorer countries may be forced to opt for alternative, more damaging land use, it is ironic that the same Macron has been fighting tooth and nail to prevent French farming companies from losing out on lucrative EU agricultural subsidies that are tied to ownership of agricultural land.” ExpressUK
Malaysia - Bursa Malaysia Derivatives Launches East Malaysia Crude Palm Oil Futures (FEPO)
KUALA LUMPUR, Malaysia, Oct. 1, 2021 PRNewswire/ -- Bursa Malaysia Derivatives Berhad ("Bursa Malaysia Derivatives") will be launching the East Malaysia Crude Palm Oil Futures ("FEPO") Contract to meet the evolving needs of the Sabah and Sarawak palm oil market players for greater price transparency and alternative risk management tool.
The launch of FEPO will be officiated by Datuk Dr. Hajah Zuraida Kamaruddin, Minister of Plantation Industries and Commodities; Datuk Seri Panglima Haji Hajiji Haji Noor, Chief Minister of Sabah; and Datuk Patinggi (Dr) Abang Haji Abdul Rahman Zohari Tun Datuk Abang Haji Openg, Chief Minister of Sarawak, through a Virtual Launch Ceremony on Monday 4 October 2021. The FEPO Contract will be made available to traders once launched, effective 4 October 2021.
"With Sabah and Sarawak accounting for nearly half of the country's Crude Palm Oil production, we identified a need to provide a hedging mechanism that caters to the East Malaysian palm oil players," said Datuk Muhamad Umar Swift, Chairman of Bursa Malaysia Derivatives and Chief Executive Officer of Bursa Malaysia Berhad. "The approved port tank installations in Sabah and Sarawak namely in Bintulu, Lahad Datu and Sandakan will improve the logistics costs of physical delivery and benefit both upstream and downstream market players in East Malaysia." PRNewswire
India - Duty cut lifts India's palm oil imports in Sept to a record 1.4 million T- dealers
MUMBAI (Reuters) - India's palm oil imports in September more than doubled from a year ago to a record 1.4 million tonnes as buyers increased purchases of refined palm oil ahead of key festivals and to take advantage of newly lowered duties, brokers and dealers said.
Higher purchases by India, the world's biggest buyer of vegetable oils, could support palm oil prices that are trading near a record high hit earlier this week.
The country's total vegetable oil imports in September jumped 72% from a year ago to a record 1.8 million tonnes, including more than 400,000 tonnes of refined palm oil, Sandeep Bajoria, chief executive of Sunvin Group, a vegetable oil broker, said.
"Imports jumped because of government decision to lower import tax and festive season demand," said Bajoria. REUTERS
Thailand - Oil fund tapped to keep biodiesel B10 affordable
The Energy Ministry will use the State Oil Fund to keep the retail price of biodiesel B10 from going above 30 baht per litre.
Ministry spokesman Sompop Pattanariyankool said the ministry has launched fuel price control measures to cope with the rising price of biodiesel B10 to help relieve the hardship of those involved in transport. Prices for the fuel rose five times during September. The latest rise came yesterday when all diesel prices rose 0.60 baht per litre and benzene prices increase 0.40 baht per litre.
The price now stands at 28.29 baht for biodiesel B10, (10% of palm-oil-derived methyl ester blended with diesel), which is the country's primary diesel. The government will subsidise the price to prevent biodiesel B10 prices from going above 30 baht per litre, he said.
Global fuel prices have been rising due to the economic recovery, winter seasons in parts of the West, and storms in the US which have combined to cause disruptions in fuel production. BangkokPost
Nigeria - Investors can make $1bn from palm oil, says Adebayo
The Minister of Trade, Industry and Investment, Niyi Adebayo has announced plans by the Federal Government to collaborate with investors to implement backward integration programme across key selected priority products.
These products include, palm oil, sugar, cassava starch, cotton textiles and garments.
Adebayo disclosed this on Thursday, during his address at the second Andersen Africa-Europe Bridge Conference held virtually, a statement issued by his spokesperson, Ifedayo Sayo said.
The statement was titled ‘Nigeria’s Economic Diversification Agenda achieving positive results – Adebayo’.
It read, “He announced the implementation of the ministry’s backward integration programme across key selected priority products, namely palm oil, sugar, cassava starch, cotton textiles and garments, saying the government was prepared to collaborate with investors to achieve its mandate. PunchNG
Nigeria - Okomu Foresees Flourishing Palm Oil Industry in Nigeria
The palm oil industry in Nigeria can rightly be said to have gone from grace to grass because many years ago, it was the world’s leading producer but today, it has slipped to fifth.
What could have caused this fall from grace? This was what CNN International’s Larry Madowo tried to find out in this week’s Marketplace Africa.
According to the major players in the sector, Nigeria’s palm oil production suffered shortcomings, mostly due to the fact that 80 per cent of production is driven by smallholder farmers.
Factors such as infrastructural backlogs, poor roads, blocked or backed up ports and lack of electricity make the production much more expensive, the makers pointed out.
But despite these issues, some producers are looking to navigate the storm and place Nigeria on top once more because they believe the future is bright for the sector and this is why a publicly quoted company, Okomu Oil Plc, is working with smallholder farmers to achieve this goal. BusinessPostNG
Nigeria - Okitipupa Oil Palm to raise share capital to N1bn
Shareholders of Okitipupa Oil Palm (OOP) Plc have approved the plan by the company to raise its share capital to N1 billion from N50 million.
The Chief Executive Officer of the company, Taiwo Adewole, who addressed shareholders at the 31st Annual General Meeting (AGM) in Lagos said the fund would be deployed to finance the current expansion programme designed to take the firm to the next level as contained in its Strategic Master Plan.
Adewole expressed delight that the process which started in 2018 but slowed can now progress steadily to completion.
He noted that several players in the oil palm industry have expressed interest in investing in the company following the turnaround in the company that resulted in a rebound to profitability after almost three decades of losses. VanguardNGR