Headline News on Palm Oil. December 2020
Read curated news that impacts the palm oil industry globally.
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"The art of knowing is knowing what to ignore" - Rumi
CSPO Watch News. Making it easy for you to follow the palm oil industry
"The art of knowing is knowing what to ignore" - Rumi
US/Malaysia - MPOCC expresses concern over US import ban on Sime Darby Plantation
KUALA LUMPUR (Dec 31): The Malaysian Palm Oil Certification Council (MPOCC) has observed with great concern over the United States ban on Sime Darby Plantation Bhd, citing allegations of forced labour in its production process.
The US government widened its ban on Malaysian palm oil imports yesterday over allegations that Sime Darby Plantation Bhd uses forced labour in the production process.
Under a new Withhold Release Order, the US Customs and Border Protection will be required to detain any palm oil arriving in the US from Sime Darby Plantation. TheEdgeMarkets
US - Searching for ethical sugar
Americans sure love sugar; we each eat an average of 6 cups of the stuff a week, for a total of 152 pounds a year. When we think of the granules and syrups we or manufacturers purposefully add to our foods (not the fructose, glucose, and lactose that occur naturally in fruits, vegetables and dairy), it's usually in terms of their effects on our bodies: The calories they add to our diets. The holes they bore in our teeth. Their contribution to diabetes and heart disease. Even, on the plus side, the small pains sweetness can soothe away in the very young.
Rarely, though, do we consider sugar's implications on planetary health, or the wellbeing of the farmers and other workers responsible for getting it to us. Salon
Nestle - Nestlé’s €3.58bn plan to halve carbon emissions by 2030 suggests overall industry shift
According to Ryan Whittaker, Consumer Analyst at GlobalData, a leading data and analytics company: “Nestlé’s ambitious plans reveal how pervasive environmental issues have become in the corporate and consumer world. In fact, GlobalData’s most recent surveys suggest that the COVID-19 pandemic has actually increased the priority of sustainability and ethics in global attitudes, meaning that Nestlé’s announcements are going to resonate with an extremely large number of international consumers. IndiaRetailing
US/Malaysia - US adds Malaysia’s Sime Darby to palm import ban list
US customs has barred entry to raw palm oil and derived products supplied by Malaysian producer Sime Darby Plantation and affiliated entities from yesterday, citing evidence of forced labour in its production process.
Shipments will be detained at US ports, with importers allowed to re-export or demonstrate that cargoes were not produced with forced labour.
The US Customs and Border Protection (CBP) agency issued a similar outstanding withhold release order against Malaysian palm oil producer FGV Holdings in September. ArgusMedia
Asia - Viewpoint: Asian biodiesel resurgence limited by costs
Rising blending mandates in Europe and an economic recovery from Covid-19 are set to fuel demand for Asian biodiesel and feedstocks, although liquidity could be neutered by high costs in the short term.
Third-month fob Bursa Malaysia crude palm oil (CPO) futures rose to their highest since May 2012 in December, at 3,470 ringgit/t ($852/t), on tight supply, labour shortages and adverse weather.
Jakarta increased export levies on palm products on 10 December to fund its ambitious yet burdensome domestic 30pc biodiesel mandate (B30) in transport fuel, as it looked to subsidise the price difference between domestic biodiesel and gasoil. ArgusMedia
Malaysia - Malaysia’s trade surplus surges 152% to RM16.82 bln in November
KUALA LUMPUR: Malaysia’s trade surplus surged 151.6 per cent year-on-year (y-o-y) to RM16.82 billion last month, the highest surplus ever recorded for the month of November.
The Ministry of International Trade and Industry (MITI) said exports increased by 4.3 per cent to RM84.43 billion compared to the same month last year, marking three consecutive months of y-o-y growth.
Meanwhile, imports fell nine per cent to RM67.61 billion and total trade shrank by two per cent to RM152.04 billion, it said in a statement today. TheSunDaily
China - Economic Watch: China boosts opening-up of futures market to attract global traders
BEIJING, Dec. 28 (Xinhua) -- China's drive to open its futures markets to the outside world has gathered pace with an ultimate goal to serve the real economy amid the country's efforts to seek high-quality development.
China currently has seven kinds of commodity futures and options open to direct participation by international investors, after overseas investors were allowed to participate in the futures trading of a type of palm oil on Dec. 22.
This came right after China launched the listing and trading of bonded copper futures contracts on Nov. 19, which are open to global traders. China
Nepal - Traders shift to exporting soybean oil as palm oil loses lustre after India’s restriction
Soybean oil shipments increased four and a half times to Rs13.5 billion in the first five months of the fiscal year.
Soybean oil has shot up to the top of the list of Nepal's largest exports, knocking palm oil from the number-one spot, as traders changed tack to keep exploiting trade preferential loopholes after the Indian government squeezed palm oil imports.
According to the Department of Customs, soybean oil shipments increased four and a half times year-on-year to Rs13.5 billion from Rs3 billion in the five-month period from mid-July to mid-December in the current fiscal year. In the whole of the last fiscal year 2019-20, Nepal's soybean oil exports amounted to Rs12.69 billion, the statistics show. KathmanduPost
India - Crude palm oil: Tax cut to push up imports from Malaysia
Large shipments expected in Dec as the country imposes 8% export tax from Jan
After the Centre reduced the basic import duty on crude palm oil (CPO) from 37.5 per cent to 27.5 per cent last month, the Malaysian government announced that it will start imposing export tax on CPO at 8 per cent with effect from January 2021. TheHinduBusinessline
Malaysia - Sarawak Business Federation all for recruitment of foreign workers
KUCHING (Dec 26): The Sarawak Business Federation welcomes the state government’s decision in allowing the recruitment of foreign workers effective from Jan 1 next year to address the state’s economic requirements.
The federation’s secretary-general Jonathan Chai said the oil palm plantations in the state, for example, were estimated to be facing a shortage of 40,000 workers and causing the industry to incur an estimated annual revenue loss of RM2.15 billion. BorneoPost
India - Modi Releases $2.5 Billion Under Support Plan for Small Farmers
(Bloomberg) -- Indian Prime Minister Narendra Modi released 180 billion rupees ($2.5 billion) as part of a program for smallholders, even as tens of thousands of farmers continued their monthlong protest on the outskirts of New Delhi against new farm laws.
Under the initiative, the government has announced to deposit a total of 6,000 rupees in a year directly to the bank accounts of beneficiary farmers in three equal installments. YahooFinance
Malaysia - Crude Palm Oil on track to post the highest year-end closing in 25 years
KUALA LUMPUR (Dec 25): Crude palm oil (CPO) prices have been on a steady climb since early May, and the edible oil is poised to post the highest year-end closing in 25 years, if not longer.
According to Bloomberg, generic three-month palm oil futures (expiring on Dec 31) are currently trading RM48 higher at RM3,854 a tonne, a 25-year high. TheEdgeMarkets
Malaysia - Malaysia’s move to resume palm oil export tax come January 2021 may curb palm oil prices, demand — PublicInvest Research
KUALA LUMPUR (Dec 23): Malaysia’s move to resume the crude palm oil export tax at the highest rate of 8% in January 2021 is slightly negative for crude palm oil (CPO) prices as it will curb demand for palm oil from the country, stated PublicInvest Research in a note today.
PublicInvest Research analyst Chong Hoe Leong said the move will narrow the gap between Malaysian and Indonesian CPO prices to about RM570 per ton, from RM862 per ton, making it a more competitive playing field. TheEdgeMarkets
Malaysia - Higher tax burden for plantation firms
PETALING JAYA: With the rally in crude palm oil (CPO) prices owing to stronger global demand and lower production, the world’s two largest palm oil exporting countries, Indonesia and Malaysia, are taking advantage of the higher prices through increased taxes on the commodity.
In just weeks after Indonesia raised its taxes on CPO exports, Malaysia has followed suit by re-imposing the export duty on the vegetable oil starting January 2021 at a rate of 3%-8% for CPO prices above RM2,250 per tonne. TheStarMY
Indonesia - Minister elaborates on Indonesia's move to align peat, mangrove restoration
JAKARTA (FORESTHINTS.NEWS) - Indonesian Environment and Forestry Minister Siti Nurbaya has pointed out that the additional task of accelerating mangrove rehabilitation, alongside peat restoration efforts, reflects a new level of commitment from President Joko Widodo in restoring two of the largest sources of carbon stocks in the country.
Minister Nurbaya said that this new move by President Widodo is a testament to his specific concerns as he remains wholly committed to peat restoration, now in parallel to speeding up mangrove rehabilitation. Foresthints
India - Hyderabad: Massive plan to boost oil palm cultivation
Rajendranagar: In order to make the Telangana state completely self-reliant in producing edible oil, the departments of agriculture and horticulture are promoting oil palm cultivation in vast areas across the State. They have already kicked off a pilot project in some district. Director of Horticulture and Sericulture L Venkatram Reddy said both the departments have prepared and presented before the government a detailed plan to promote oil palm cultivation with an outlay of Rs 4,800 crore for the year 2021-22. "The plan includes Rs 2,000 crore subsidies to encourage farmers to take up oil palm cultivation as a better alternative to paddy cultivation. As a pilot basis, we have taken up cultivation in some of the districts like Mahboobabad and Jogulamba Gadwal districts," informed the Director. TheHansIndia
Malaysia - FGV up, most active as FELDA takeover offer becomes unconditional
KUALA LUMPUR (Dec 23): FGV Holdings Bhd topped Bursa Malaysia’s most active list and rose among leading gainers in morning trade today after the plantation group said yesterday it had received an unconditional mandatory takeover offer notice at RM1.30 a share from the Federal Land Development Authority (FELDA), which intends to delist FGV from the local bourse.
FELDA’s takeover offer for FGV became unconditional after the collective FGV shareholding of FELDA and persons acting in concert with it rose past 50%. TheEdgeMarkets
Nigeria - Edo leading in regional effort to revive oil palm development
BENIN CITY – The Africa Oil Palm Initiative (APOI) has said Edo State is leading a regional expansion in oil palm development in the Niger Delta region, leveraging its sustainable models and approaches to create a regional platform.
This was contained in a report titled “The Africa Palm Oil Initiative: Highlights 2019-2020,” x-raying efforts to emplace a sustainable way to increase oil palm production in West and Central Africa. NigerianObserver
EU - Viewpoint: EU biofuel plans to drive feedstock changes
Higher biofuels blending mandates under new European renewables legislation will offer a boon to biodiesel spot prices in 2021 after a year of poor margins caused by lockdown-related falls in road fuel demand.
And provisions in the Renewable Energy Directive (RED II), scheduled to come into effect in June, will drive feedstock diversification, providing additional support to waste-based and advanced biodiesel while capping the use of food and feed crop-based biofuels. ArgusMedia
EU - Commodities 2021: Climate change policy targets to stimulate EU biodiesel consumption
London — Policy will continue to be a key driver of the European biodiesel market through 2021, with the revised Renewable Energy Directive (REDII) setting the EU policy framework until 2030.
Biofuel mandates and diesel demand recovery are set to fuel higher EU biodiesel consumption in 2021. S&P Global Platts Analytics projects 2020-21 EU biodiesel consumption will increase by 1.86 million mt on the year to 16.68 million mt. SPGlobal
Germany - German government agrees draft biofuels law
The German government has agreed a draft law revising biofuels legislation in order to implement the EU's revised Renewable Energy Directive (RED II).
The draft allows for a rise in Germany's greenhouse gas (GHG) emissions reduction obligation from 6pc now to 6.5pc in 2022, 7pc in 2023, 8pc in 2024 and 10pc in 2026. In 2028 this will jump to 14.5pc and then to 22pc in 2030.
A blending quota for synthetic fuels in aviation — a power-to-liquids, or 'PtL quota' — will start at 0.5pc in 2026, rising to 1pc in 2028 and 2pc by 2030. ArgusMedia
Indonesia may lower 2021 biodiesel allocation to 8.5 mln KL
JAKARTA: Indonesia, the world's top palm oil maker, may lower its palm oil biofuel allocation for 2021 as the government adopted a more cautious fuel consumption outlook next year, an official at the National Energy Council said on Wednesday.
The energy ministry may lower the allocation of fatty acid methyl ester (FAME) made from palm oil to 8.5 million kilolitres (kl), from current plan of 9.2 million kl, Djoko Siswanto, secretary general of the council told an industry event. EconomicTimes
India - SEA seeks level-playing field for palm oil exporter-importer
The Solvent Extractors’ Association (SEA) of India has urged the Centre to include proper proviso in ASEAN agreement to restrict/regulate the imposition of export duty by the palm oil exporting country. SEA feels that this will ensure a level-playing field for both the countries that export and import palm oil.
In a letter to its members, Atul Chaturvedi, President of SEA, said that there is always a bound rate for imposing highest duty on palm products imported by India under ASEAN agreement and Comprehensive Economic Cooperation Agreement with Malaysia. HinduBusinessLine
Malaysia - Malaysia to impose 8-pct export tax on crude palm oil
KUALA LUMPUR, Dec. 22 (Xinhua) -- Malaysia, the world's second largest palm oil producer, will raise its crude palm oil (CPO) export tax from 6.5 percent in December to 8 percent in January next year, according to a Malaysian Palm Oil Board (MPOB) circular Tuesday.
According to the industry regulator, the palm oil reference price for January next year is 3,475.44 ringgit (about 855.81 U.S. dollars) per ton.
Based on the tax structure, no export duty will be imposed on any CPO price below 2,250 ringgit per ton, and an export tax of 3 percent will be imposed when the CPO price ranges between 2,250 ringgit and 2,400 ringgit per ton. XinHuaNet
Brazil - Food and feed companies reject soy from deforested areas
Food and feed companies are working towards a more transparent soy trade to stop deforestation.
Large food companies and retail companies from the United States and Europe want a stop on the trade in soy from deforested areas. They have sent a letter to the major soy traders.
Among those who signed the letter are companies such as retailers Tesco and Walmart and food groups Unilever and McDonalds, news agency Reuters reports. The companies have urged soy traders to stop trading soy from Brazil’s Cerrado, a savanna area that is mined for soy cultivation. Dealers contacted are Archer Daniels Midland (ADM), Bunge, Louis Dreyfus Company (LDC), Cargill, Cofco International and Glencore. In November, companies were asked to stop sourcing soybeans, directly or indirectly, from cultivated areas in the Cerrado after 2020. AllAboutFeed
FERRERO’S PALM OIL: SUPPLY CHAIN TRANSPARENCY
Ferrero’s commitment to the responsible sourcing of palm oil is at the core of our strategy: sourcing palm oil that is 100% RSPO Segregated (SG) certified and fully traceable back to plantations.
We are aware that the palm oil supply chain faces environmental and social challenges and, through active collaboration with NGOs, key stakeholders and suppliers, we work to secure a 100% deforestation-free, and exploitation-free palm oil supply chain.
Based on a continuous improvement approach of our value chain, in case a non-compliance is identified among our suppliers, we will immediately put in place remediation actions. If these actions are not carried out by our suppliers accordingly, Ferrero will take the necessary measures, including the termination of the business relationship. Ferrero
Malaysia - Local company out to help Mirians handle, dispose of used cooking oil
MIRI: Restaurant owners, coffee-shop operators and even residents here who do not know what to do with or how to dispose of used cooking oil, need not worry anymore as now, there is a local company that could handle this matter.
According to Sepang Dynamics Sdn Bhd’s business development manager Alex Jong, the company plans to set up a series of educational programmes meant to increase public awareness of the importance of proper disposal of used cooking oil. BorneoPost
German ministries agree on emission reduction quota for transport fuels
Germany is to increase the greenhouse gas reduction quota for transport fuels from currently six to 22 percent in 2030, an environment ministry bill which has been approved by the other ministries states. Companies that supply fuel in Germany are obliged to reduce the greenhouse gas emission of all the products they place on the market by a certain percentage: the greenhouse gas reduction quota.
The legislation which is implementing the European Union’s Renewable Energy Directive (RED II) is aiming for a share of 28 percent renewable energies in the transport sector by 2030, considerably more than the 14 percent benchmark set by the EU. CleanEnergyWire
India - Godrej Agrovet gains on bagging land in Telangana for palm oil cultivation
Godrej Agrovet rose 2.36% to Rs 562.55 after the company said it secured a 28,164 hectare land in Telangana for cultivation of oil palm.
In a BSE filing made post market close yesterday, the company said that the Department of Horticulture, Government of Telangana, vide its order dated 16 December 2020, has allotted area admeasuring 28,164 hectares in the Mahabubabad district of Telangana to the company, for the purpose of oil palm cultivation/expansion. BusinessStandard
India - Govt. meets to discuss oil seed mission, may hike import duty on edible oil soon
The central government is considering raising import duty gradually in a bid to incentivize farmers to grow more oilseeds locally.
As per the last meeting, the government is considering to hike import duty on Soyabean, Sunflower, and Rapeseed oil by 5 per cent to use these profits to invest in domestic production of oilseeds.
"We have been meeting regarding this, and considering a proposal to increase some tax on edible oil. The tax hike could be beneficial in collecting funds for domestic production of edible oil in the country," said a government source on conditions of anonymity to ET Now. Krishijagran
Indonesia spent more on biodiesel subsidies than funds collected in 2020
JAKARTA, Dec 17 (Reuters) - Indonesia spent more on biodiesel subsidies than funds it collected through export levies this year, Eddy Abdurrachman, president director of the country’s Estate Crop Fund (BPDP) said on Thursday.
BPDP, the government body in charge of subsidising Indonesia’s palm oil programmes, estimated 17-18 trillion rupiah had been raised from levies this year, while 25.7 trillion rupiah ($1.82 billion) had been spent subsidising the price difference between crude oil and palm oil, he said. Reuters
Papua New Guinea - Industry needs regulation: Official
Malaysia and Papua New Guinea both started oil palm plantations in the 1960s.
Malaysia now has an annual turnover of K70 to K80 billion while PNG still sits on the K1.4 billion annual average.
Malaysia has 5.4 million hectares, Indonesia has 16 million hectares while PNG is below 200,000 hectares.
While availability of land is an issue, however, to grow the industry, regulation is needed.
Business reporter PETER ESILA spoke to Oil Palm Industry Corporation (Opic) acting general-secretary Kepson Pupita in Alotau last Saturday on the need to revive the industry beginning with the amendment of the Opic Act 1992. TheNationalPG
UK - Beauty owner PZ Cussons puts transparency at forefront with deforestation commitment
Consumer goods brand PZ Cussons has extended its no-deforestation commitment and takes another step towards operating a fully transparent supply chain.
The Carex owner has extended its promise, which said no deforestation would take place sourcing palm oil for its products, to include pulp and paper.
The group will now only source materials from suppliers that have clear links to tackling deforestation.
“We are extremely excited to start to apply what we have learnt on our palm oil journey to our paper and cardboard supply chain,” said Neill Craigie, PZ Cussons’ Regional Manager. CosmeticsBusiness
UK - Eco-Labels gaining traction in food industry
The launch of the new Vegan and Plant-Based certification schemes highlights the growing importance of eco-labels in the food industry. The last few months has already seen new certification schemes being introduced for sustainable sourcing, upcycled ingredients, and green products. Ecovia Intelligence questions the long term implications of the eco-labelling trend.
FoodChain ID has just introduced its Vegan, Vegetarian, and Plant-Based labels in the US market. With a surge in consumer demand for plant-based foods and absence of legal definitions, the aim is to provide some uniform standards for such products. The Vegan Society and ProVeg standards (V-Label) are already highly established in the European plant-based food market. Launched in 1990, the Vegan Society trademark is the most established, present on over 47,000 products. FnBnews
From Bananas to Palm Oil: Tracking the rise and performance of voluntary sustainability standards
IISD's State of Sustainability Initiatives has recently completed an extensive research project giving a market overview for important agricultural sectors that employ voluntary sustainability standards (VSSs). The Sustainable Commodities Marketplace Series research helps fill the knowledge gaps around global sustainable consumption and production for eight commodities — bananas, cocoa, coffee, cotton, palm oil, soybeans, sugar, and tea — uncovering important trends and information to support action on improving environmental and social performance in these sectors through VSSs. IISD
Austria - OMV invests in HVO co-processing at Schwechat refinery
Austrian refiner OMV said today it plans to invest €200mn ($247mn) in co-processing at its 200,000 b/d Schwechat refinery to produce hydrotreated vegetable oil (HVO).
Co-processing — the simultaneous conversion of renewable and fossil feedstock — will allow OMV to transform around 160,000 t/yr of biomass into CO2-neutral road fuels at Schwechat by 2023, the firm said. OMV said the technology chosen for the refinery will allow to process vegetable oils, but also waste products such as used cooking oil (UCO) and advanced feedstock. They will be used based on availability, the firm said. ArgusMedia
M&S to relaunch Plan A sustainability strategy
M&S is planning to relaunch its industry-leading Plan A sustainability programme in 2021 to reflect on the changing environmental and social needs globally, with a new ESG Board Sub-Committee to be set up to scrutinise the strategy.
M&S’s Plan A strategy was launched in 2007 as a pioneering corporate strategy focused on corporate responsibility. In 2017, the strategy was updated to include targets to make all M&S packaging “widely recyclable” by 2022, halve food waste by 2025 and reduce operational emissions by 80% compared to 2007 as part of M&S’s approved science-based target. Edie
Unilever to put its plans to fight climate change to shareholder votes
Unilever is to offer investors a regular vote on its plans to tackle climate change, becoming the world’s largest company to do so as corporates face growing pressure to cut greenhouse gas emissions.
The maker of Dove soap, Hellmann’s mayonnaise and Ben & Jerry’s ice cream will put its climate plans to an advisory vote at its annual general meeting in May, after this year announcing ambitious plans to cut all emissions from its operations and those of its suppliers by 2039. FinancialTimes
India - Telangana government pushing to make state hub for 'palm oil'
KHAMMAM: Telangana is becoming a destination for oil palm farming. Currently, oil palm cultivation is being taken up in Khammam, Bhadradri Kothagudem, Nalgonda and Suryapet districts. While there is a demand for 4 lakh tonnes of crude palm oil every year, production is only 30,000 tonnes. The government is planning to bridge the gap by encouraging cultivation in 2 lakh acres.
The State government is pushing to cultivate oil palm in over 7 lakh acres and increase production capacity to 15 lakh metric tonnes, following which Telangana will become self-sufficient in edible oils and lead to thousands of direct and indirect employment opportunities in the State. NewIndianExpress
Nigeria - Saving poultry sector with FMN, other backward integration strategies
There is increasing attention to producing agro-allied products locally to sustain food security and enhance good nutrition, especially if the talk about ending hunger and reducing poverty in Nigeria is to be achieved.
With a focus now on home-grown alternatives to achieve this purpose, it may not be long before the nation begins to witness a drive towards sustainable processes that ensures local agro-industries become pivotal to the country’s entire agricultural value chain. GuardianNG
Pakistan - Ghee, cooking oil and poultry crisis engulfing Pakistan: Zahid
Chairman of National Business Group of FPCCI, President Pakistan Businessmen and Intellectuals Forum and All Karachi Industrial Alliance, and former provincial minister Mian Zahid Hussain on Friday said after the flour, sugar and vegetable crisis, ghee and poultry crisis is engulfing the country.
The prices of ghee and cooking oil are increasing for which steps should be taken including administrative action and abolishing import duty on palm oil so that masses facing unprecedented inflation can get some relief, he said. PakObserver
Nigeria - Okomu Oil forecasts improved profit of N2.974b in Q1 2021
Okomu Oil Palm Company Plc, a Nigeria-based company engaged in cultivation of oil palm, processing of fresh fruit bunches into crude palm oil for resale, rubber plantation and processing of rubber lumps to rubber cake for export has released its earnings forecast for the first quarter 2021 with profit after tax N2.974 billion, an improvement of 1,210% over the N227.424 million forecasted for the 4th quarter 2020.
The Q4 profit forecast released to the Nigerian Stock Exchange on Friday in a notice signed by Felix Odighizuma Chief Accountant, Dr Graham Hefer, Managing Director put turnover at N9.402 billion compared with N3.736 billion forecasted for Q4. PremiumTimesNG
Africa - OPINION - Unfair French economic relations with Africa
For several decades in Africa, debates have taken place around economic relations between France and its former colonies in the continent.
Despite statements, French President Emmanuel Macron is in no mood to end the unequal and unfair relationship, as his country continues to control the trade and currency of these former colonies. The maintenance of economic domination allows the prolongation of political domination. AA
Breaking down Mars' maverick move for a more sustainable palm oil supply chain
After more than a decade of work intended to rid palm oil supply chains of deforestation, the results don’t match the effort.
Deforestation has increased, despite more monitoring, more certifications, more on-the-ground cooperation and the availability of palm oil certified by the Roundtable on Sustainable Palm Oil for 12 years. SupplyChainDive
Yum! Brands Advances Its Sustainability Journey Through Transparent Reporting to CDP
Transparency around climate and energy work is a top priority for Yum! Brands and is reflected in its 11-year history of reporting to CDP, a leader in environmental disclosure. This year, the company achieved both climate and water scores of an A-, a year-over-year improvement for each response. Yum! also continued expanding its forest reporting beyond paper and palm to include beef. CSRWire
Danone named a global environmental leader
Danone has been recognised for the second consecutive year as a world environment leader by the international non-profit organisation CDP.
CDP’s disclosure and scoring system is lauded as the gold standard of corporate environmental transparency. And out of more than 5,800 companies scored in 2020, Danone is one of only 10 companies that achieved a place on the A List for three environmental areas of climate change, forests preservation and water security. ConvenienceImpulseRetail
India - Oil palm sector gets ₹4,800-cr push from Telangana govt
Plans afoot to grow the plantation crop on 8 lakh acres
Telangana has decided to give a big push to the palm oil sector by announcing a ₹4,800-crore project to promote the edible oil plantation in the State.
The State has set a target to have a coverage of eight lakh acres in the next few years as against the present acreage of only 38,000 acres. HinduBusinessLine
Chinese demand pushes up prices of palm oil
KOLKATA: China is buying huge quantities of palm oil, pushing up prices of the hard oil that India imports from Indonesia and Malaysia to meet its domestic demand.
While a shortage in global oilseed production has been a major reason for prices of edible oil to shoot up, China too has played its part for prices to remain firm, traders and edible oil manufacturers said. EconomicTimes
Indonesia Export Levy Revision to Support Crude Palm Oil Prices, Stability Key
Fitch Ratings-Singapore/Jakarta-08 December 2020: The revision in Indonesia's export levy structure should support Indonesia's biodiesel consumption growth in 2021 by boosting collections to fund the subsidy burden, Fitch Ratings says. This will also support crude palm oil (CPO) prices, and the Malaysian benchmark should average higher than our assumption of USD560/tonne (t) in 2021. FitchRatings
Malaysia's CIMB commits to phase out coal financing by 2040
KUALA LUMPUR (Reuters) - Malaysia’s CIMB Group Holdings Bhd on Tuesday committed to phase out coal from its portfolio by 2040, saying it was the first banking group in Malaysia and Southeast Asia to do so.
Big international banks have been exiting coal financing at an accelerated rate this year amid pressure from non-governmental organisations (NGOs) and a global energy transition. Reuters
Malaysia - Tropical food farmers must grow more on less land, as climate policy shifts
KUALA LUMPUR (Thomson Reuters Foundation) - Tropical farmers will struggle to meet rising food demand unless they sustainably boost yields on the same land, with rising forest protection and carbon prices aimed at fighting climate change expected to hinder agriculture expansion, researchers said on Monday.
A report by thinktank Orbitas looked at the financial risks to tropical farmers and agricultural businesses - including palm oil, soybean and beef - if they do not adapt to new climate actions by governments, companies and consumers. Reuters
Nigeria - Nigerians must embrace production to grow economy —Emefiele
Governor of the Central Bank of Nigeria, Mr Godwin Emefiele, has said Nigeria must return to the golden era age when the country produced goods and services to grow the economy.
Specifically, Emefiele said the only way for the naira to catch up with other foreign currencies as was in the past was for Nigerians to depend less on the consumption of foreign goods.
According to him, no nation in the world depends on the consumption of foreign goods and grow its economy. ThePunchNG
EU. ASEAN - Co-chairs' press release of the 23rd ASEAN-EU ministerial meeting
The Association of Southeast Asian Nations (ASEAN) and the European Union (EU) convened the 23rd ASEAN-EU Ministerial Meeting (AEMM) on Tuesday, 1 December 2020 via video conference. The Meeting was co-chaired by Singapore’s Minister for Foreign Affairs Dr Vivian Balakrishnan, as Country Coordinator for ASEAN-EU Dialogue Relations, and EU High Representative for Foreign Affairs and Security Policy/Vice-President of the European Commission Josep Borrell. The Meeting was attended by the Foreign Ministers or their representatives from all ASEAN Member States and 27 EU Member States, as well as the ASEAN Secretariat and European Commission. Europa.eu
Indonesia - Indonesian palm oil export levy positive for country's downstream players, Malaysian planters —CGS-CIMB
KUALA LUMPUR (Dec 7): The Indonesian government’s decision to revise its export levy structure will hurt upstream palm oil producers in the country, but will be a positive move for Indonesian downstream players and Malaysian planters, opined CGS-CIMB Research.
CGS-CIMB’s Ivy Ng and Nagulan Ravi noted that the new regime is positive for downstream palm oil players, like Wilmar International Ltd, as they will benefit from the wider differential in the export levy rate between processed palm oil and crude palm oil (CPO) if CPO prices rise above US$670 (about RM2,727.57) a tonne, which will boost processing margins as they will able to procure CPO at below international market prices. TheEdgeMarkets
Japan - Japan makers face slippery slope in procuring sustainable palm oil
TOKYO -- Nine Japanese makers have declared that by the end of the year, all palm oil they use will be certified by the Roundtable on Sustainable Palm Oil, as international criticism against poor environmental practices at plantations and producers continues to grow.
Palm oil is found in a wide variety of food and daily-use products. The makers' pledge signals a step forward in their awareness about protecting the environment. However, most Japanese companies still mix conventional palm oil with RSPO-certified oil -- a blend that is anathema to many European companies. NikkeiAsia
Malaysia/US - FGV reaffirms commitment to addressing WRO issued by CBP
KUALA LUMPUR (Dec 3): FGV Holdings Bhd has reiterated its commitment to addressing the Withhold Release Order (WRO) issued by the US Customs and Border Protection (CBP) against the group's palm oil and palm oil products and assured that it is making continuous effort in addressing the matter.
In a statement today, FGV said the issues raised by CBP have been the subject of public discourse since 2015, with the group rigorously working towards enhancement of its labour practices.
"FGV's continuous effort in ensuring the implementation of FGV's human rights and labour policies on the ground is evidenced by the various initiatives and programmes that FGV has embarked on, in particular its affiliation to the Fair Labor Association (FLA). MSN
Nigeria - FG reviewing investment policies to attract FDIs
President Muhammad Buhari has said the Federal Government is reviewing the nation’s investment policy to promote investments that align with the country’s economic development objectives.
Buhari stated this at the opening ceremony of the Lagos International Trade Fair (LITF), organised by the Lagos Chamber of Commerce and Industry (LCCI), and that his government has also commenced implementation of its willing buyer willing seller policy in the power sector, which has created opportunity for increased delivery of electricity to consumers. GuardianNG
Nigeria - FG accelerating industrial production, backward integration
The President, Major General Muhammadu Buhari (retd.), has said the government is encouraging domestic production in order to accelerate industrialisation.
Buhari, who was represented by the Minister for Industry, Trade and Investment, Mr Niyi Adebayo, at the opening ceremony of the 34th Lagos International Trade Fair on Friday, said backward integration was one of the focal points of the government.
According to him, challenges associated with the COVID-19 pandemic had made it important to accelerate the growth of the industrial sector. PunchNG
Malaysia urges for JWG meeting to convene as early as Jan 2021
KUALA LUMPUR, Dec 2 -- Malaysia has called for the Joint Working Group (JWG) between the Association of the Southeast Asian Nations (ASEAN) and European Union (EU) to convene as early as in January next year following the elevation of the relationship of both regional organisations to Strategic Partnership.
In making the call during his intervention at the 23rd ASEAN-EU Ministerial meeting, Foreign Minister Datuk Seri Hishammuddin Tun Hussein said both sides need to iron out pending issues, mainly in relation to the element of vegetable oils in the Terms of Reference (TOR) of the Joint Working Group (JWG). Bernama
Indonesia urges EU to accord fair treatment to palm oil
akarta (ANTARA) - Arguing against the phasing out of palm oil, Foreign Minister Retno Marsudi urged the European Union (EU) to give fair treatment to the commodity during the 23rd ASEAN-EU Ministerial Meeting, held online on Tuesday.
“Indonesia's request to the European Union for fair treatment of palm oil is reasonable, bearing in mind that Indonesia does not sacrifice environmental conservation merely for the sake of economic development,” she said in the press statement issued by the Foreign Ministry.
If other vegetable oils need 278 million hectares of cultivated land, then palm oil requires just 17 million hectares of land, the minister said. AntaraNews
Singapore/ Jakarta - Palm oil demand will be limited if prices continue to rise - analysts
SINGAPORE/JAKARTA (Reuters) - Palm oil demand may be restrained next year, as supply shortages triggered by unfavourable weather, infrastructure issues and the COVID-19 pandemic push prices up further, analysts told a virtual palm oil conference on Thursday.
Higher prices may lead consumers to look for cheaper alternatives, eventually pushing palm oil prices lower in the second half of next year, leading edible oils analysts Thomas Mielke and Dorab Mistry said. REUTERS
Indonesia - New Indonesia palm oil levy seen hurting demand, smallholder farms
SINGAPORE/JAKARTA (Reuters) - Indonesia will impose higher levies on crude palm oil (CPO) starting Dec. 10, an official document showed on Thursday, a move that could impact demand next year as it seeks to generate funds for its ambitious palm-based biodiesel programme.
Export levies will be raised to a progressive system of $55-$255 per tonne of CPO, depending on price levels. It previously imposed a flat $55 levy on CPO regardless of price. REUTERS
China-Europe freight costs threaten UCO trade into 2021
Heavy container congestion at Chinese and European ports has closed the used cooking oil (UCO) flexitank arbitrage on this trade route, with no reprieve on the horizon until next year's first quarter.
UCO flexitank freight costs from China and southeast Asia to Europe have tripled in the space of a couple of months from $40-50/t to around $110-150/t, although many of the issues behind the spike go back much further.
Port workers were cut back and factories temporarily closed when the Covid-19 pandemic first hit earlier in the year, causing a build-up of containers. So with less cargo to carry shipping companies reduced the number of lines to stabilise costs. ArgusMedia
EU - New fraud investigation casts doubt over used cooking oil origins
A fresh biofuels fraud investigation in the Netherlands has once again shone a spotlight on the origin of imported used cooking oil (UCO) in the EU.
The investigation, carried out by the Human Environment and Transport Inspectorate (ILT) together with Dutch investigative services earlier this month, involved a raid on an unnamed biofuels company in an investigation into large-scale biofuels fraud over suspicions of forged certificates for biodiesel.
The concerns are that biofuels that have not been sustainably produced are registered and sold as a sustainable fuel. Euractiv
Malaysia - 88.1 pct of oil palm plantation MSPO-certified as at Nov 19 - MPIC
KUALA LUMPUR, Dec 1 -- A total of 88.1 per cent or 5.1 million hectares out of 5.9 million hectares under oil palm cultivation in the country have obtained the Malaysian Sustainable Palm Oil (MSPO) certification as at Nov 19, according to the Ministry of Plantation Industries and Commodities (MPIC).
Deputy Minister Willie Mongin said that 100 per cent of oil palm plantations in Sarawak are MSPO-certified, followed by Kelantan (95.5 per cent) and Pahang (94.75 per cent), while MSPO-certification in other states are within the 40-80 per cent range.
“However, we cannot deny that the European Union are still on the anti-palm oil campaign which we are currently combating, as it is unfair for our oil palm plantations,” he said in winding up the committee-level Budget 2021 debate for his ministry in the Dewan Rakyat here today. Bernama
US - Cargill engages US customers with Roundtable for Sustainable Palm Oil certified supplies
Cargill has moved to enhance its environmental policies in becoming one of a small number of large-scale US suppliers of segregated palm oil certified by the Roundtable for Sustainable Palm Oil (RSPO), writes Neill Barston
As the company revealed, its latest initiative starts next month, with all its supplies from its Charlotte, North Carolina refinery will be solely dedicated to providing the sustainably sourced product.
The venture adds to its recent report this summer detailing progress on another significant goal in terms of its palm oil sourcing from Asia, which targeted the elimination of deforestation with its supply chain by the end of 2020. ConfectioneryProduction
Palm oil news. December. CSPO Watch