Palm Oil News - July 2024
For all the news on the global palm oil industry. July 2024
Makin' it easy for you to monitor developments in the palm oil industry
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July 31, 2024
The U.S. And EU Are In A Stand-Off Over Deforestation
It seems that the United States (U.S.), the European Union (EU) and several others may be setting the stage for a sustainability stand-off, and it will likely leave companies searching for answers.
At the center of this debate is the EU’s new deforestation law: the EU Deforestation Regulation (EUDR). The legislation – set to become effective on December 31 across all EU Member States – will require companies selling cattle, cocoa, coffee, palm oil, rubber, soya and wood and their derived products into the EU, to prove their supply chains do not contribute to the destruction of forests anywhere else in the world. Companies that cannot show that their related products adhere to this new regulation will have them banned from being sold in the Union’s 27 Member States.
It sounds like a slam dunk for sustainability advocates, but there has been some swift and strong pushback. Chief among the critics is a surprising source: the Biden-Harris administration has demanded that the EU delay its implementation, arguing that it could hurt American producers. More at Forbes
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Encouraging mirror clauses is playing with fire
A conversation with John Clarke about the do’s and don’ts of requiring specific production method standards for the EU’s agricultural imports.
The call for ‘mirror clauses’ in bilateral trade agreements is making a political comeback in the midst of farmer protests across the continent. European Union member states including France, farmers across Europe, and many members of the European Parliament are calling for such clauses to be included in the EU’s free trade agreements.
But what are mirror clauses? And why might they be problematic from a legal and trade perspective? And how to better support European farmers?
Rob Francis and Iana Dreyer spoke to John Clarke, a former director for international relations at the European Commission and a former head of the EU delegation to the World Trade Organization in Geneva.
Q: What are mirror clauses and do they make sense?
John Clarke: The idea of a mirror clause is that any imports of agri-food products must meet all EU production standards, be it about wage rates, environmental regulations, climate and animal welfare rules, or rules related to pesticides and herbicides.
In other words, the way that the food is produced in the third country must mirror exactly European production methods.
Let’s be clear though: we are not talking about imported products complying with European health and safety standards. That is not negotiable. Imports must always comply with EU health and safety standards irrespective of FTAs. If for example imported grapes carry on their skin a banned carcinogenic herbicide, they can’t be imported. If poultry meat carries salmonella it cannot enter the EU.
But it is illegal under international trade rules to ban imports from another country just because it has different production methods where this does not affect the final product. You can’t just ban a product because of the way it was produced.
Let me give an example. Let’s say there is a fruit imported that has been produced with a pesticide which, although banned in the EU, carries no trace in the final product. The import poses no health-and-safety issues for the EU. So there is no justification for banning it. More Borderlex
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Indonesia’s challenge: How to push biofuel without aiding deforestation
Can incoming president Prabowo ramp up production of palm oil without clearing more land and raising the risk of fires and haze?
Simon Tay and Aaron Choo
Many are watching the upcoming leadership transition in Indonesia with the hope of stability, growth and political continuity between President Joko Widodo and his successor Prabowo Subianto, who will take office in October.
In economic policy, Mr Prabowo has set an ambitious target for 8 per cent growth in gross domestic product (GDP) within the first three years of his presidency, up from the current five per cent. Straits Times
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There is gold in oil palm biomass, time for action
By: Professor Dato Dr Ahmad Ibrahim
The national biomass action plan has been launched. Since the palm oil biomass is the largest, the Ministry of Plantation and Commodity has been tasked to coordinate the plan execution. A key policy recommendation is to establish biomass collection centers in strategic locations to optimize logistics and create economy of scale. The supply from a lone mill cannot justify the return on investment.
Only Malaysia and Indonesia are blessed with the huge amounts of oil palm biomass. The irony of it all is that neighboring countries which do not have even a single oil palm tree are taking serious measures to embrace the potentially lucrative biomass business. There is no doubt that there is gold in oil palm biomass. Admittedly there are risks involved. It is a comparatively new industry.
Market uncertainty is one major risk. Technology is also a risk. So is raw material supply. Investment is also not cheap. High risks can also deliver high returns. Private investors may not jump in without clear returns on investment. This is where the government must chip in. All the analysis suggest that oil palm biomass is destined to transform the country’s palm oil economy. At around 6 million hectares, we have no more room to
maneuver to expand the business. Ideas to improve yield has been around for years. But oil productivity has been stagnating at less than 4 tons per hectare. More Malaysia Gazette
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Indonesia’s tight supply of CPO benefits Malaysia, say industry experts
KUALA LUMPUR (July 30): Indonesia’s palm oil supply is expected to remain tight and that may augur well for Malaysia, say industry experts.
Glenauk Economics analysts Leow Huey Chen and Dr Julian McGill said in a note that palm oil supply in Indonesia, the world's largest producer, is expected to remain tight throughout 2024, primarily attributed to lower production levels resulting from adverse weather conditions and high input costs.
The duo anticipate a decline of 200,000 tonnes in Indonesia’s palm oil production in 2024 compared to the previous year. This is expected to maintain Indonesia's low inventory levels, thereby sustaining high crude palm oil (CPO) prices.
Data from the Indonesian Palm Oil Association (Gapki) showed that Indonesia’s palm oil production fell 16% year-on-year (y-o-y) to 4.25 million tonnes in May 2024, while exports dropped by 12% y-o-y to 1.97 million tonnes. The country’s palm oil stocks were down by 12% y-o-y to 4.09 million tonnes in May.
Given the tight CPO supply from Indonesia, this situation is expected to benefit Malaysia, as consumers are likely to shift their demand towards Malaysian palm oil supplies, CIMB Investment Bank’s head of Malaysia research and regional head of agribusiness research Ivy Ng Lee Fang told The Edge.
“This shift could positively impact the country’s palm oil exports, resulting in reduced stocks and increased prices,” she said. The Edge Malaysia
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Olive oil fraud and mislabelling cases hit record high in EU
The EU had a record number of potential olive oil fraud and mislabelling cases in the first quarter of this year as inflationary pressures fuelled an increase in the hidden market for the kitchen staple.
The cost of olive oil has more than doubled since 2018 with production hit by extreme weather caused by the climate crisis and other factors.
As the price has spiked, so has the number of “cross-border EU notifications”, which include mislabelling, potential fraud, and safety cases involving contaminated oils.
In the first quarter of 2018, just 15 such cases were recorded by the EU. That rose to a record 50 cases in the first three months of this year, more than a threefold increase, according to data released to the Guardian under freedom of information laws.
However, these cases are only those to have been detected and reported by member states to the EU directorate general for health. The figure omits domestic cases and the true scale of the fraud is probably much higher.
The incident reports included oils contaminated with unauthorised substances such as pesticides, mineral oils and one case where glass fragments were discovered.
There were also many cases where extra virgin olive oil was judged to be adulterated, for example by mixing it with poorer or cheaper quality oils, cases where virgin olive oil was labelled as extra virgin (a more premium unrefined oil with a lower acidity), and several cases of misleading or false origin labelling. UK Agroconsult
--------
The U.S. And EU Are In A Stand-Off Over Deforestation
It seems that the United States (U.S.), the European Union (EU) and several others may be setting the stage for a sustainability stand-off, and it will likely leave companies searching for answers.
At the center of this debate is the EU’s new deforestation law: the EU Deforestation Regulation (EUDR). The legislation – set to become effective on December 31 across all EU Member States – will require companies selling cattle, cocoa, coffee, palm oil, rubber, soya and wood and their derived products into the EU, to prove their supply chains do not contribute to the destruction of forests anywhere else in the world. Companies that cannot show that their related products adhere to this new regulation will have them banned from being sold in the Union’s 27 Member States.
It sounds like a slam dunk for sustainability advocates, but there has been some swift and strong pushback. Chief among the critics is a surprising source: the Biden-Harris administration has demanded that the EU delay its implementation, arguing that it could hurt American producers. More at Forbes
--------
Encouraging mirror clauses is playing with fire
A conversation with John Clarke about the do’s and don’ts of requiring specific production method standards for the EU’s agricultural imports.
The call for ‘mirror clauses’ in bilateral trade agreements is making a political comeback in the midst of farmer protests across the continent. European Union member states including France, farmers across Europe, and many members of the European Parliament are calling for such clauses to be included in the EU’s free trade agreements.
But what are mirror clauses? And why might they be problematic from a legal and trade perspective? And how to better support European farmers?
Rob Francis and Iana Dreyer spoke to John Clarke, a former director for international relations at the European Commission and a former head of the EU delegation to the World Trade Organization in Geneva.
Q: What are mirror clauses and do they make sense?
John Clarke: The idea of a mirror clause is that any imports of agri-food products must meet all EU production standards, be it about wage rates, environmental regulations, climate and animal welfare rules, or rules related to pesticides and herbicides.
In other words, the way that the food is produced in the third country must mirror exactly European production methods.
Let’s be clear though: we are not talking about imported products complying with European health and safety standards. That is not negotiable. Imports must always comply with EU health and safety standards irrespective of FTAs. If for example imported grapes carry on their skin a banned carcinogenic herbicide, they can’t be imported. If poultry meat carries salmonella it cannot enter the EU.
But it is illegal under international trade rules to ban imports from another country just because it has different production methods where this does not affect the final product. You can’t just ban a product because of the way it was produced.
Let me give an example. Let’s say there is a fruit imported that has been produced with a pesticide which, although banned in the EU, carries no trace in the final product. The import poses no health-and-safety issues for the EU. So there is no justification for banning it. More Borderlex
--------
Indonesia’s challenge: How to push biofuel without aiding deforestation
Can incoming president Prabowo ramp up production of palm oil without clearing more land and raising the risk of fires and haze?
Simon Tay and Aaron Choo
Many are watching the upcoming leadership transition in Indonesia with the hope of stability, growth and political continuity between President Joko Widodo and his successor Prabowo Subianto, who will take office in October.
In economic policy, Mr Prabowo has set an ambitious target for 8 per cent growth in gross domestic product (GDP) within the first three years of his presidency, up from the current five per cent. Straits Times
--------
There is gold in oil palm biomass, time for action
By: Professor Dato Dr Ahmad Ibrahim
The national biomass action plan has been launched. Since the palm oil biomass is the largest, the Ministry of Plantation and Commodity has been tasked to coordinate the plan execution. A key policy recommendation is to establish biomass collection centers in strategic locations to optimize logistics and create economy of scale. The supply from a lone mill cannot justify the return on investment.
Only Malaysia and Indonesia are blessed with the huge amounts of oil palm biomass. The irony of it all is that neighboring countries which do not have even a single oil palm tree are taking serious measures to embrace the potentially lucrative biomass business. There is no doubt that there is gold in oil palm biomass. Admittedly there are risks involved. It is a comparatively new industry.
Market uncertainty is one major risk. Technology is also a risk. So is raw material supply. Investment is also not cheap. High risks can also deliver high returns. Private investors may not jump in without clear returns on investment. This is where the government must chip in. All the analysis suggest that oil palm biomass is destined to transform the country’s palm oil economy. At around 6 million hectares, we have no more room to
maneuver to expand the business. Ideas to improve yield has been around for years. But oil productivity has been stagnating at less than 4 tons per hectare. More Malaysia Gazette
--------
Indonesia’s tight supply of CPO benefits Malaysia, say industry experts
KUALA LUMPUR (July 30): Indonesia’s palm oil supply is expected to remain tight and that may augur well for Malaysia, say industry experts.
Glenauk Economics analysts Leow Huey Chen and Dr Julian McGill said in a note that palm oil supply in Indonesia, the world's largest producer, is expected to remain tight throughout 2024, primarily attributed to lower production levels resulting from adverse weather conditions and high input costs.
The duo anticipate a decline of 200,000 tonnes in Indonesia’s palm oil production in 2024 compared to the previous year. This is expected to maintain Indonesia's low inventory levels, thereby sustaining high crude palm oil (CPO) prices.
Data from the Indonesian Palm Oil Association (Gapki) showed that Indonesia’s palm oil production fell 16% year-on-year (y-o-y) to 4.25 million tonnes in May 2024, while exports dropped by 12% y-o-y to 1.97 million tonnes. The country’s palm oil stocks were down by 12% y-o-y to 4.09 million tonnes in May.
Given the tight CPO supply from Indonesia, this situation is expected to benefit Malaysia, as consumers are likely to shift their demand towards Malaysian palm oil supplies, CIMB Investment Bank’s head of Malaysia research and regional head of agribusiness research Ivy Ng Lee Fang told The Edge.
“This shift could positively impact the country’s palm oil exports, resulting in reduced stocks and increased prices,” she said. The Edge Malaysia
--------
Olive oil fraud and mislabelling cases hit record high in EU
The EU had a record number of potential olive oil fraud and mislabelling cases in the first quarter of this year as inflationary pressures fuelled an increase in the hidden market for the kitchen staple.
The cost of olive oil has more than doubled since 2018 with production hit by extreme weather caused by the climate crisis and other factors.
As the price has spiked, so has the number of “cross-border EU notifications”, which include mislabelling, potential fraud, and safety cases involving contaminated oils.
In the first quarter of 2018, just 15 such cases were recorded by the EU. That rose to a record 50 cases in the first three months of this year, more than a threefold increase, according to data released to the Guardian under freedom of information laws.
However, these cases are only those to have been detected and reported by member states to the EU directorate general for health. The figure omits domestic cases and the true scale of the fraud is probably much higher.
The incident reports included oils contaminated with unauthorised substances such as pesticides, mineral oils and one case where glass fragments were discovered.
There were also many cases where extra virgin olive oil was judged to be adulterated, for example by mixing it with poorer or cheaper quality oils, cases where virgin olive oil was labelled as extra virgin (a more premium unrefined oil with a lower acidity), and several cases of misleading or false origin labelling. UK Agroconsult
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July 30, 2024
EU anti-deforestation law poised to roil markets: supply chain experts
The European Union Deforestation Regulation (EUDR) is set to drive consumer prices up and demand down, with shippers from high-risk regions potentially forced to remove Europe as an export destination, according to supply chain risk experts.
Starting Dec. 30, full due diligence traceability requirements will be imposed on EU importers and traders placing seven products covered by the EUDR — cattle, cocoa, coffee, palm oil, rubber, soy and timber — on the EU market.
Wolfgang Lehmacher, author and supply chain expert, said the EUDR was necessary and represented a bold move to bring change to a self-destructive economic system and...Read at JOC SPGlobal
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Industry stakeholders call for urgent action against surge in palm oil imports
Sri Lanka is experiencing a substantial financial drain with millions being spent on palm oil imports, industry stakeholders said while calling for reevaluation on the ban on palm oil to address this issue.
During a workshop organized by the Nucleus Foundation on the advantages of using vegetable oil, industrialists highlighted the nation’s high demand for palm oil by pointing out the reliance of over 90 percent of food processing companies and 60 percent of edible products on the edible oil.
The event, held at Lotus Tower, Colombo, was held in partnership with the Ministry of Agriculture and Plantation Industries, along with the support of the Malaysian High Commission, the Indonesian Embassy, and Solidaridad.
“It is essential to look beyond import substitution and consider the trade deficit. In Sri Lanka, there is potential for success with palm oil cultivation as it creates employment and promotes industrialization for millions of smallholder farmers and workers across the supply chain,” Solidaridad Managing Director Dr. Shatadru Chattopadhayay said.
Indonesia, Malaysia, and Thailand are major players in palm oil production, accounting for over 90 percent of global production while Pakistan and Bangladesh present significant trade opportunities. More Daily Mirror LK
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Euroviews. Seed oils are the new tobacco — and you need to know about it
Oil crops have become some of the most profitable in agriculture and have changed the face of our planet. Yet, if we’re looking for smoking guns on what causes metabolic diseases in humans, seed oils are a high-probability harm factor, Eurof Uppington writes.
It’s been a creeping health crisis for decades. Seed oils, highly refined industrial fats, are almost unavoidable in our diets. They are also one of the single biggest sources of total calorie intake and drivers of epidemics of ill health. And we need to know about it.
Previously the bugbear of a mix of concerned scientists, right-wing carnivores, and podcast hosts, seed oil awareness hit the big time in the US late last year: healthy lunchtime salad bowl brand Sweetgreens announced it was taking seed oils off the menu for cooking, citing health concerns, and was going to use Californian extra virgin olive oil instead. Other chains have followed.
In the US, there are now apps to find seed oil-free restaurants, a new “seed oil-free” food certification, and startups, like Zero Acre Foods, pushing novel cooking oils with no seeds in sight.
Full disclosure: I run a B2B regenerative olive oil company. This is why I started researching cooking oils in our food system. What I discovered truly shocked me and changed the way I eat. I’m passing it on. More Euronews
EU anti-deforestation law poised to roil markets: supply chain experts
The European Union Deforestation Regulation (EUDR) is set to drive consumer prices up and demand down, with shippers from high-risk regions potentially forced to remove Europe as an export destination, according to supply chain risk experts.
Starting Dec. 30, full due diligence traceability requirements will be imposed on EU importers and traders placing seven products covered by the EUDR — cattle, cocoa, coffee, palm oil, rubber, soy and timber — on the EU market.
Wolfgang Lehmacher, author and supply chain expert, said the EUDR was necessary and represented a bold move to bring change to a self-destructive economic system and...Read at JOC SPGlobal
---------
Industry stakeholders call for urgent action against surge in palm oil imports
Sri Lanka is experiencing a substantial financial drain with millions being spent on palm oil imports, industry stakeholders said while calling for reevaluation on the ban on palm oil to address this issue.
During a workshop organized by the Nucleus Foundation on the advantages of using vegetable oil, industrialists highlighted the nation’s high demand for palm oil by pointing out the reliance of over 90 percent of food processing companies and 60 percent of edible products on the edible oil.
The event, held at Lotus Tower, Colombo, was held in partnership with the Ministry of Agriculture and Plantation Industries, along with the support of the Malaysian High Commission, the Indonesian Embassy, and Solidaridad.
“It is essential to look beyond import substitution and consider the trade deficit. In Sri Lanka, there is potential for success with palm oil cultivation as it creates employment and promotes industrialization for millions of smallholder farmers and workers across the supply chain,” Solidaridad Managing Director Dr. Shatadru Chattopadhayay said.
Indonesia, Malaysia, and Thailand are major players in palm oil production, accounting for over 90 percent of global production while Pakistan and Bangladesh present significant trade opportunities. More Daily Mirror LK
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Euroviews. Seed oils are the new tobacco — and you need to know about it
Oil crops have become some of the most profitable in agriculture and have changed the face of our planet. Yet, if we’re looking for smoking guns on what causes metabolic diseases in humans, seed oils are a high-probability harm factor, Eurof Uppington writes.
It’s been a creeping health crisis for decades. Seed oils, highly refined industrial fats, are almost unavoidable in our diets. They are also one of the single biggest sources of total calorie intake and drivers of epidemics of ill health. And we need to know about it.
Previously the bugbear of a mix of concerned scientists, right-wing carnivores, and podcast hosts, seed oil awareness hit the big time in the US late last year: healthy lunchtime salad bowl brand Sweetgreens announced it was taking seed oils off the menu for cooking, citing health concerns, and was going to use Californian extra virgin olive oil instead. Other chains have followed.
In the US, there are now apps to find seed oil-free restaurants, a new “seed oil-free” food certification, and startups, like Zero Acre Foods, pushing novel cooking oils with no seeds in sight.
Full disclosure: I run a B2B regenerative olive oil company. This is why I started researching cooking oils in our food system. What I discovered truly shocked me and changed the way I eat. I’m passing it on. More Euronews
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July 29, 2024
'BRICS will allow Malaysia to tap into new markets'
KUALA LUMPUR: Malaysia's membership of BRICS will allow the country to tap into new markets, increase trade and investment opportunities and enhance its global standing, said experts.
Universiti Teknologi Mara's SME Development and Entrepreneurship Academy coordinator Mohamad Idham Md Razak said Malaysia would also benefit from access to resources, knowledge sharing and collaboration in the bloc.
"The collaboration can help Malaysia reduce its reliance on traditional markets and mitigate the impact of global economic downturns," he told the New Straits Times.
This in turn could contribute to economic stability, he said when commenting on Malaysia's application to join BRICS.
Yesterday, Prime Minister Datuk Seri Anwar Ibrahim said Malaysia had applied to join BRICS.
Anwar said the country's potential membership in BRICS held "substantial promise" and underscored Malaysia's commitment to fostering robust international collaboration.
Idham added that Malaysia's alignment with BRICS members presented a promising avenue for expanded trade and economic cooperation.
"The bloc's collective economic might and diverse resource base offer substantial opportunities for Malaysian businesses.
"Sectors — such as palm oil, rubber, and electronics, where Malaysia holds a competitive advantage — could benefit significantly from increased market access to BRICS nations."
BRICS comprises Brazil, Russia, India, China, South Africa, Iran, Egypt, Ethiopia and the United Arab Emirates.
It is considered the foremost geopolitical rival of the G7
bloc, with member countries accounting for around 45 per cent of the world's population and 28 per cent of the global gross domestic product. More New Straits Times
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KWAP COMMITS TO A SUSTAINABLE FUTURE FOR MALAYSIA
In the lead-up to the highly anticipated KWAP Inspire Conference 2024, Kumpulan Wang Persaraan (Diperbadankan) [KWAP] Chief Investment Officer Hazman Hilmi Sallahuddin shared an insightful commentary on the transformative power of sustainability and the essential role of a circular mindset in redefining Malaysia’s socio-economic landscape.
Responsible investing will stimulate business growth
Responsible investing integrates environmental, social and governance (ESG) issues into investment decisions, enhancing traditional financial analysis. This approach, known as active ownership or stewardship, aims to influence companies or assets positively. Some investors focus on financial returns, considering ESG impacts, while others seek positive outcomes for people and the planet through impact investing.
Key ESG issues include climate change, biodiversity, human rights, conducive working environment, diversity, equity, inclusion, board structure and executive remuneration. ESG issues are often interconnected, with their cumulative impact being significantly greater than when considered in isolation. For instance, climate change, categorised as an environmental issue, can significantly affect human health and the economy of a country experiencing climate-related challenges that can later amplify as a huge systemic risk which will impact financial returns.
As a UN PRI signatory since 2018, KWAP reports annually on responsible investment activities, emphasising transparency. “Our investment beliefs and objectives are clear: to generate sustainable and responsible risk-adjusted long-term returns,” said Hazman.
By incorporating ESG factors, adhering to PRI principles and maintaining transparency, KWAP aims for sustainable investments that stimulate business growth and benefit society and the environment.
Fostering a circular economy
Embedding a circular mindset is essential to advancing a climate-smart nation. Creating a circular mindset will foster a culture dedicated to keeping resources in use for as long as possible,” emphasised Hazman.
The circular economy is a transformative model that redefines our approach to product life cycles. For instance, the Malaysian palm oil industry employs innovative practices by using palm oil mill effluent (POME) to generate biogas, a renewable energy source. This not only reduces landfill waste but also creates new revenue streams, clearly demonstrating how a circular business model can enhance Malaysia’s socio-economic status. More The Edge Malaysia
--------
Indonesia Trade Ministry plans to revise palm oil domestic market rules
JAKARTA, July 29 (Reuters) -Indonesia's Trade Ministry is planning to revise the domestic market obligation rules for palm oil to potentially change the prices for the portion and types of product sold to the local market, director Bambang Wisnubroto said on Monday.
Under the 'domestic market obligation' (DMO),palm oil producers have to sell a portion of their output to the localmarket at a capped price in order to gain export permits, so as to ensure the supply of affordable cooking oil for Indonesians.
Bambang did not provide further details, but said the ministry aims for a revision to this rule to be issued this week.
Export quotas are currently set at four times the volume of palm oil that companies have supplied locally under the DMO scheme, with extra allotments given to companies that sold in smaller household-friendly sizes instead of bulk. XM
'BRICS will allow Malaysia to tap into new markets'
KUALA LUMPUR: Malaysia's membership of BRICS will allow the country to tap into new markets, increase trade and investment opportunities and enhance its global standing, said experts.
Universiti Teknologi Mara's SME Development and Entrepreneurship Academy coordinator Mohamad Idham Md Razak said Malaysia would also benefit from access to resources, knowledge sharing and collaboration in the bloc.
"The collaboration can help Malaysia reduce its reliance on traditional markets and mitigate the impact of global economic downturns," he told the New Straits Times.
This in turn could contribute to economic stability, he said when commenting on Malaysia's application to join BRICS.
Yesterday, Prime Minister Datuk Seri Anwar Ibrahim said Malaysia had applied to join BRICS.
Anwar said the country's potential membership in BRICS held "substantial promise" and underscored Malaysia's commitment to fostering robust international collaboration.
Idham added that Malaysia's alignment with BRICS members presented a promising avenue for expanded trade and economic cooperation.
"The bloc's collective economic might and diverse resource base offer substantial opportunities for Malaysian businesses.
"Sectors — such as palm oil, rubber, and electronics, where Malaysia holds a competitive advantage — could benefit significantly from increased market access to BRICS nations."
BRICS comprises Brazil, Russia, India, China, South Africa, Iran, Egypt, Ethiopia and the United Arab Emirates.
It is considered the foremost geopolitical rival of the G7
bloc, with member countries accounting for around 45 per cent of the world's population and 28 per cent of the global gross domestic product. More New Straits Times
--------
KWAP COMMITS TO A SUSTAINABLE FUTURE FOR MALAYSIA
In the lead-up to the highly anticipated KWAP Inspire Conference 2024, Kumpulan Wang Persaraan (Diperbadankan) [KWAP] Chief Investment Officer Hazman Hilmi Sallahuddin shared an insightful commentary on the transformative power of sustainability and the essential role of a circular mindset in redefining Malaysia’s socio-economic landscape.
Responsible investing will stimulate business growth
Responsible investing integrates environmental, social and governance (ESG) issues into investment decisions, enhancing traditional financial analysis. This approach, known as active ownership or stewardship, aims to influence companies or assets positively. Some investors focus on financial returns, considering ESG impacts, while others seek positive outcomes for people and the planet through impact investing.
Key ESG issues include climate change, biodiversity, human rights, conducive working environment, diversity, equity, inclusion, board structure and executive remuneration. ESG issues are often interconnected, with their cumulative impact being significantly greater than when considered in isolation. For instance, climate change, categorised as an environmental issue, can significantly affect human health and the economy of a country experiencing climate-related challenges that can later amplify as a huge systemic risk which will impact financial returns.
As a UN PRI signatory since 2018, KWAP reports annually on responsible investment activities, emphasising transparency. “Our investment beliefs and objectives are clear: to generate sustainable and responsible risk-adjusted long-term returns,” said Hazman.
By incorporating ESG factors, adhering to PRI principles and maintaining transparency, KWAP aims for sustainable investments that stimulate business growth and benefit society and the environment.
Fostering a circular economy
Embedding a circular mindset is essential to advancing a climate-smart nation. Creating a circular mindset will foster a culture dedicated to keeping resources in use for as long as possible,” emphasised Hazman.
The circular economy is a transformative model that redefines our approach to product life cycles. For instance, the Malaysian palm oil industry employs innovative practices by using palm oil mill effluent (POME) to generate biogas, a renewable energy source. This not only reduces landfill waste but also creates new revenue streams, clearly demonstrating how a circular business model can enhance Malaysia’s socio-economic status. More The Edge Malaysia
--------
Indonesia Trade Ministry plans to revise palm oil domestic market rules
JAKARTA, July 29 (Reuters) -Indonesia's Trade Ministry is planning to revise the domestic market obligation rules for palm oil to potentially change the prices for the portion and types of product sold to the local market, director Bambang Wisnubroto said on Monday.
Under the 'domestic market obligation' (DMO),palm oil producers have to sell a portion of their output to the localmarket at a capped price in order to gain export permits, so as to ensure the supply of affordable cooking oil for Indonesians.
Bambang did not provide further details, but said the ministry aims for a revision to this rule to be issued this week.
Export quotas are currently set at four times the volume of palm oil that companies have supplied locally under the DMO scheme, with extra allotments given to companies that sold in smaller household-friendly sizes instead of bulk. XM
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July 28, 2024
EU deforestation policy endangers Nigeria’s $770m cocoa industry
Cocoa farmers on Saturday raised concerns over the European Union’s plans to implement its deforestation regulation plan in December 2024.
In an open letter appealing to the EU Commission for a postponement of the European Union Deforestation Regulation, the National President of the Cocoa Farmers Association of Nigeria, Comrade Adeola Adegoke, stated that the nation’s $770 million cocoa industry would be at risk if urgent steps are not taken to resolve sustainability issues like deforestation and traceability.
According to him, Nigeria’s cocoa could be at risk if the federal government does not take the necessary legal steps to halt and remediate deforestation and develop strategies for addressing forest loss in cocoa communities through collective action.
The farmers, however, assured the EU that steps are being taken to comply with best practices.
“We have embarked on advocacy and capacity training for our cocoa farmers in the areas of ecosystem protection, focusing on the production of deforestation-free cocoa and the protection of the rights of our labourers and children.
“These training sessions were conducted in partnership with other stakeholders across the cocoa-producing communities, tagged: Cocoa Farmers Roundtable Conference,” the statement read.
“CFAN also organised the first privately driven and publicly enabled Nigerian Cocoa Summit & Award to find workable solutions to the issues affecting the cocoa industry. The Summit extensively brainstormed on the EUDR’s forthcoming implementation, living income differential, national cocoa plan, inadequate local cocoa processing, value addition and consumption, and the need for Nigeria to have a cocoa regulatory framework that will drive the industry, rather than relying on an ineffective system,,” the letter added.
The EUDR is a regulation that prohibits products from entering the EU market unless they are deforestation-free and legally produced. The Regulation applies to wood, palm oil, soy, coffee, cocoa, rubber, and cattle, as well as most of their derivatives. Under cocoa, it applies to beans, products, and chocolate.
The regulation entered into force on June 29, 2023, with an 18-month preparation period expiring on December 30, 2024, when it will fully come into effect.
However, in the open letter addressed to Janusz Wojciechowski, EU Commissioner for Agriculture, the cocoa farmers have requested the implementation deadline be postponed to December 2025 to enable better preparation by the smallholder cocoa farmers, who have been hampered by a lack of adequate information on the EUDR at their farm gate level.
“Our appeal is based on the imminent negative impact on the livelihoods of cocoa farmers if the current date is not extended by one year,” the letter read.
In the letter, they noted further that Nigeria is one of the world’s major cocoa-producing countries, contributing about 6.5 per cent to global cocoa production and accounting for 29 per cent of total agricultural exports in 2023, valued at N1.24 trillion, with an estimated value of N356.16 billion.
“This makes it imperative for the EU Commission to reconsider the need for the postponement of the EUDR by one year to enable better preparations.
“Compliance with the EUDR might push our cocoa farmers into greater poverty if the time frame is not adjusted,” they stressed. PunchNG
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EU Deforestation-free Regulation: Are you ready for It Philippines?
BY LUCKY CIMATU
IT IS said that global shifts, movements, and issues know no borders; what happens in one part of the world can impact us all.
The game is changing on the other side of the world, and these shifts are poised to disrupt our current supply chain operations here in the Philippines. You may wonder how and why these changes affect the Philippines, but it’s crucial to recognize the far-reaching impacts of international regulations. Particularly, those from influential regions like the European Union (EU). With sustainability as a current core focus in the EU, we can expect significant disruptions and shifts in the sustainability landscape.
One prominent example of these regulatory changes is the EU Deforestation-Free Regulation (EUDR).
The EUDR is not the only regulation likely to impact businesses in the Philippines, but it is a significant indicator of the growing global emphasis on sustainability. Businesses must start embedding these principles into their operations now to stay ahead.
Understanding some of the Key Features of EU Deforestation-free Regulation (EUDR)
Products Included in the Regulation
The EUDR targets seven key commodities: palm oil, cattle, soy, coffee, cocoa, timber, and rubber, along with their derived products, such as beef, furniture, and chocolate. These commodities were chosen based on a thorough Impact Assessment identifying them as the primary drivers of deforestation due to agricultural expansion.
This assessment utilized scientific data and previous research to identify commodities through which European consumption significantly contributes to global deforestation and forest degradation.
The EUDR applies equally to products from within and outside the EU.
Objectives
The new rules aim to: More Mindanao Times
EU deforestation policy endangers Nigeria’s $770m cocoa industry
Cocoa farmers on Saturday raised concerns over the European Union’s plans to implement its deforestation regulation plan in December 2024.
In an open letter appealing to the EU Commission for a postponement of the European Union Deforestation Regulation, the National President of the Cocoa Farmers Association of Nigeria, Comrade Adeola Adegoke, stated that the nation’s $770 million cocoa industry would be at risk if urgent steps are not taken to resolve sustainability issues like deforestation and traceability.
According to him, Nigeria’s cocoa could be at risk if the federal government does not take the necessary legal steps to halt and remediate deforestation and develop strategies for addressing forest loss in cocoa communities through collective action.
The farmers, however, assured the EU that steps are being taken to comply with best practices.
“We have embarked on advocacy and capacity training for our cocoa farmers in the areas of ecosystem protection, focusing on the production of deforestation-free cocoa and the protection of the rights of our labourers and children.
“These training sessions were conducted in partnership with other stakeholders across the cocoa-producing communities, tagged: Cocoa Farmers Roundtable Conference,” the statement read.
“CFAN also organised the first privately driven and publicly enabled Nigerian Cocoa Summit & Award to find workable solutions to the issues affecting the cocoa industry. The Summit extensively brainstormed on the EUDR’s forthcoming implementation, living income differential, national cocoa plan, inadequate local cocoa processing, value addition and consumption, and the need for Nigeria to have a cocoa regulatory framework that will drive the industry, rather than relying on an ineffective system,,” the letter added.
The EUDR is a regulation that prohibits products from entering the EU market unless they are deforestation-free and legally produced. The Regulation applies to wood, palm oil, soy, coffee, cocoa, rubber, and cattle, as well as most of their derivatives. Under cocoa, it applies to beans, products, and chocolate.
The regulation entered into force on June 29, 2023, with an 18-month preparation period expiring on December 30, 2024, when it will fully come into effect.
However, in the open letter addressed to Janusz Wojciechowski, EU Commissioner for Agriculture, the cocoa farmers have requested the implementation deadline be postponed to December 2025 to enable better preparation by the smallholder cocoa farmers, who have been hampered by a lack of adequate information on the EUDR at their farm gate level.
“Our appeal is based on the imminent negative impact on the livelihoods of cocoa farmers if the current date is not extended by one year,” the letter read.
In the letter, they noted further that Nigeria is one of the world’s major cocoa-producing countries, contributing about 6.5 per cent to global cocoa production and accounting for 29 per cent of total agricultural exports in 2023, valued at N1.24 trillion, with an estimated value of N356.16 billion.
“This makes it imperative for the EU Commission to reconsider the need for the postponement of the EUDR by one year to enable better preparations.
“Compliance with the EUDR might push our cocoa farmers into greater poverty if the time frame is not adjusted,” they stressed. PunchNG
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EU Deforestation-free Regulation: Are you ready for It Philippines?
BY LUCKY CIMATU
IT IS said that global shifts, movements, and issues know no borders; what happens in one part of the world can impact us all.
The game is changing on the other side of the world, and these shifts are poised to disrupt our current supply chain operations here in the Philippines. You may wonder how and why these changes affect the Philippines, but it’s crucial to recognize the far-reaching impacts of international regulations. Particularly, those from influential regions like the European Union (EU). With sustainability as a current core focus in the EU, we can expect significant disruptions and shifts in the sustainability landscape.
One prominent example of these regulatory changes is the EU Deforestation-Free Regulation (EUDR).
The EUDR is not the only regulation likely to impact businesses in the Philippines, but it is a significant indicator of the growing global emphasis on sustainability. Businesses must start embedding these principles into their operations now to stay ahead.
Understanding some of the Key Features of EU Deforestation-free Regulation (EUDR)
Products Included in the Regulation
The EUDR targets seven key commodities: palm oil, cattle, soy, coffee, cocoa, timber, and rubber, along with their derived products, such as beef, furniture, and chocolate. These commodities were chosen based on a thorough Impact Assessment identifying them as the primary drivers of deforestation due to agricultural expansion.
This assessment utilized scientific data and previous research to identify commodities through which European consumption significantly contributes to global deforestation and forest degradation.
The EUDR applies equally to products from within and outside the EU.
Objectives
The new rules aim to: More Mindanao Times
|
|
July 27, 2024
FAO Endorses Indonesia’s Deforestation Efforts
The key data point for the report is the significant decline in Indonesia’s deforestation over the past three decades. The net deforestation rate dropped from 1.9 million hectares per year in 1990-1996 to around 133 thousand hectares in 2022-2023.
The 2022-2023 period saw a slight increase in deforestation compared to the previous year. This rise was attributed to fires and El Niño effects. However, deforestation levels remain much lower than those recorded in 2015 and 2019.
The report acknowledges challenges faced in 2023 due to the El Niño phenomenon. However, the actual deforestation rates for the year were less severe than initially forecast. This improvement is partly due to enhanced law enforcement measures and other mitigation strategies undertaken by the Indonesian government.
Professor Matthew Hansen – arguably the world’s most prominent deforestation expert – spoke at the launch event for the report. He noted that the reduction in deforestation levels is consistent
“Despite using different analytical methodologies… The use of parallel and consistent charts has also demonstrated a notable reduction in deforestation rates in Indonesia which can be corroborated using IPCC methods [and] the consistent and significant decrease in deforestation could be attributed to effective policy interventions and robust monitoring capabilities within the country.”
The report doesn’t ignore ongoing challenges. The slight uptick in deforestation in 2023 highlights the complex relationship between environmental factors and forest conservation efforts.
The FAO’s global report – State of the World’s Forests – was also launched at the same time as the Indonesia report. It included some hints on even more positive data for next year’s Forest Resources Assessment, which is the benchmark for forest data. According to the FAO, a preliminary review of Indonesia’s confirms a reduction in deforestation of 90 per cent over the past decade.
Central to Indonesia’s deforestation efforts is the country’s SIMONTANA forest monitoring system, which has been compiling data since 1990, and on an annual basis since 2010.
The importance of SIMONTANA cannot be underestimated as the European Union introduces the EUDR. Thus far, the EU’s own maps have been roundly criticised for a lack of accuracy.
Deputy Minister of Environment and Forestry, Alue Dohong, recently stated:
EUDR policies must consider more parameters and the need for ground-check activities. This is what we can develop further through a robust forest monitoring system … we must still do ground-check activities to refine the remote sensing analysis results.”
SIMONTANA will be critical as the EU attempts to benchmark the deforestation risk of countries going forward, as will Indonesia’s successful deforestation efforts. Indonesia Palm Oil Facts
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China highly concerned over EU's planned anti-dumping duties on biodiesel
BEIJING, July 25 (Xinhua) -- China's Ministry of Commerce on Thursday expressed major concern over planned protectionist measures by the European Union (EU) in the biodiesel industry, and warned that such measures will backfire.
The EU, the largest biodiesel market globally, imports biodiesel from China to meet its substantial consumption needs, which helps in achieving its green transformation and energy-saving goals, said ministry spokesperson He Yongqian at a regular press conference.
The remarks came after the European Biodiesel Board announced on July 19 local time that the European Commission, in a pre-disclosure document released the same day, revealed plans to impose provisional anti-dumping duties within the next four weeks ranging from 12.8 to 36.4 percent on biodiesel imports from China.
The EU's imposition of taxes on Chinese biodiesel will only increase product costs, undermine the interests of EU industries and consumers, and hinder the EU's green transition efforts as well as China-EU economic and trade cooperation, she said.
China advocates for the prudent use of trade remedy measures and urges the EU to avoid wantonly adopting protectionist policies. The country calls for resolving these issues through dialogue and consultation to address legitimate concerns, the spokesperson said. Xinhua
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EU Deforestation regulation: retail & wholesale calls for delay
EuroCommerce has today written to the president of the European Commission to express deep concern regarding the preparation for implementation of the Regulation for Deforestation-free products (EUDR). Reiterating our full support of its important objectives, the rules still need clarification on many important practical aspects to allow retailers and wholesalers to comply.
Retailers and wholesalers are particularly affected by the EUDR due to the broad range of products in scope they sell, involving thousands of direct suppliers, with tens of thousands of upstream suppliers, the large majority of which are SMEs.
The many questions we have shared with the Commission during the past year, have so far remained unanswered. In addition, the appropriateness and readiness of the Information System (IS) and the application programming interface (API) remains a major concern. These are however indispensable to allow the connection and automation which our sector needs, as we trade multiple products, sourced from thousands of different suppliers and regions.
This situation makes it impossible to prepare in an appropriate and timely manner. There is now a clear risk that supplies might be disrupted, that SME suppliers are excluded due to lack of preparation, and that major business investments needed for its implementation are misdirected.
To address this highly uncertain situation, we are now asking the Commission that the transition period is extended allowing a minimum of 6 months after the IT tools and the benchmarking system are ready, piloted and tested, and made available for data entry, together with access to the required training material to ensure optimal preparation for this important regulation. Euro Commerce
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Tripura News: State Govt Steps Up Palm Oil Cultivation To Reduce Imports
In a bid to reduce the state's dependence on palm oil imports, the Tripura government has been aggressively promoting palm oil cultivation across the state. The initiative, launched three years ago, has seen significant progress, especially in the Dhalai district.
The government has allocated funds for cultivating palm trees in hilly and plain areas across eight blocks of the district. The Horticulture Department has been at the forefront of this initiative, distributing saplings and providing technical guidance to farmers.
Notably, Tripura has been importing palm oil worth hundreds of crores of rupees from other states every year.
A plantation drive and awareness program was held in the Ganganagar block on Friday relating the Palm cultivation. The event was attended by MLA of the 44th Raima Valley constituency Nandita Debbarma, MDC Bhumikananda Reang, and officials from the Dhalai District Horticulture Department.
In the event, local farmers were encouraged to adopt palm oil cultivation. Officials from the Horticulture Department outlined the benefits of the initiative and the government's support for farmers.
District Horticulture Officer, Parimal Debbarma, informed the farmers that the government had set an ambitious target of making Tripura self-sufficient in palm oil production within the next four years. Enews Time
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Experts advocate lifting palm oil ban to preserve forex
Experts recently explained at an international conference in Colombo that a huge amount of money available for the country's finances is drained as millions of dollars are spent on importing edible oil to Sri Lanka.
There is a huge demand for palm oil, as more than 60 per cent of food products in supermarkets are made from palm oil.
This is the main reason why Sri Lanka should seriously consider lifting its ban on palm oil, the experts pointed out.
This was discussed at the Sustainable Futures Workshop on the benefits of using vegetable oil which was held at Lotus Tower in Colombo 10, organised by the Nucleus Foundation recently.
The event's principal partner was the Ministry of Agriculture and Industry, with assistance from Solidaridad, the Indonesian Embassy, and the Malaysian High Commission.
According to Dr. Shatadru Chattopadhayay, CEO of Solidaridad Asia, there is a chance that palm oil will flourish based on Sri Lanka's achievements in the tea industry. It will need more land to substitute other vegetable oils for palm oil. The two types of oils that palm oil offers—palm oil and palm oil—help to prolong the call. Furthermore, the production of palm oil promotes industrial growth and jobs. It's crucial to go beyond product evaluations and substitutes for this. Sunday TimesLK
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Indonesia’s Palm Oil Market Potential in Africa: Insights from Angola
Angola, located in the western part of Africa, is emerging as a promising market for Indonesian palm oil on the African continent. Several regions in Angola are ready to be developed for palm oil cultivation. This potential was highlighted during a recent visit by the Indonesian Ambassador to Namibia accredited to Angola, Wisnu Edi Pratignyo, on Thursday, July 25 2024.
Ambassador Wisnu met with Ambassador Carlos Sardinha, Director of International Cooperation at the Ministry of External Relations of Angola, to explore the potential for export and cooperation in the palm oil sector.
It was noted that Angola had previously imported palm oil seeds to be planted and developed domestically, but the initiative had not yet achieved optimal results.
“We are currently looking to import palm oil seeds and bring palm oil experts from Indonesia,” said Ambassador Carlos.
Currently, palm oil cultivation and processing in Angola are still traditional. It is hoped that Indonesian palm oil experts can assist in modernizing and improving the productivity of palm oil plantations.
Ambassador Wisnu welcomed Angola’s interest in developing palm oil plantations.
“Indonesia is the world’s largest producer of palm oil,” Ambassador Wisnu explained.
One Angolan importer mentioned that over 50% of processed palm oil products are sourced from Indonesia. The Angolan palm oil market remains open to raw palm oil products, which can be further processed in Angola.
Cooperation in palm oil products could fill the gap in agricultural and industrial collaboration between Indonesia and Angola. To this end, Ambassador Wisnu has invited Angolan palm oil stakeholders to utilize the Second Indonesia Africa Forum (IAF-2) in September 2024 to meet with relevant partners in the Indonesian palm oil industry. CNBC Africa
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Are fats really bad for our health? Some fats that you must consume
Fats have been a controversial topic in nutrition and is often thought of as something of a monster when it comes to healthy nutrition and diet. However, it is extremely important to understand and acknowledge that fats are an essential part of a balanced diet.
Dietary fats are saturated, unsaturated or trans fats depending on the molecular structure.
Saturated fats are fats with no double bonds between ..
Read more at:
http://timesofindia.indiatimes.com/articleshow/112041148.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
FAO Endorses Indonesia’s Deforestation Efforts
- World’s multilateral forest organisation confirms Indonesia’s anti-deforestation efforts;
- Different methodologies confirm Indonesia’s 90% reduction in deforestation;
- Experts attribute success to effective policies and monitoring
The key data point for the report is the significant decline in Indonesia’s deforestation over the past three decades. The net deforestation rate dropped from 1.9 million hectares per year in 1990-1996 to around 133 thousand hectares in 2022-2023.
The 2022-2023 period saw a slight increase in deforestation compared to the previous year. This rise was attributed to fires and El Niño effects. However, deforestation levels remain much lower than those recorded in 2015 and 2019.
The report acknowledges challenges faced in 2023 due to the El Niño phenomenon. However, the actual deforestation rates for the year were less severe than initially forecast. This improvement is partly due to enhanced law enforcement measures and other mitigation strategies undertaken by the Indonesian government.
Professor Matthew Hansen – arguably the world’s most prominent deforestation expert – spoke at the launch event for the report. He noted that the reduction in deforestation levels is consistent
“Despite using different analytical methodologies… The use of parallel and consistent charts has also demonstrated a notable reduction in deforestation rates in Indonesia which can be corroborated using IPCC methods [and] the consistent and significant decrease in deforestation could be attributed to effective policy interventions and robust monitoring capabilities within the country.”
The report doesn’t ignore ongoing challenges. The slight uptick in deforestation in 2023 highlights the complex relationship between environmental factors and forest conservation efforts.
The FAO’s global report – State of the World’s Forests – was also launched at the same time as the Indonesia report. It included some hints on even more positive data for next year’s Forest Resources Assessment, which is the benchmark for forest data. According to the FAO, a preliminary review of Indonesia’s confirms a reduction in deforestation of 90 per cent over the past decade.
Central to Indonesia’s deforestation efforts is the country’s SIMONTANA forest monitoring system, which has been compiling data since 1990, and on an annual basis since 2010.
The importance of SIMONTANA cannot be underestimated as the European Union introduces the EUDR. Thus far, the EU’s own maps have been roundly criticised for a lack of accuracy.
Deputy Minister of Environment and Forestry, Alue Dohong, recently stated:
EUDR policies must consider more parameters and the need for ground-check activities. This is what we can develop further through a robust forest monitoring system … we must still do ground-check activities to refine the remote sensing analysis results.”
SIMONTANA will be critical as the EU attempts to benchmark the deforestation risk of countries going forward, as will Indonesia’s successful deforestation efforts. Indonesia Palm Oil Facts
--------
China highly concerned over EU's planned anti-dumping duties on biodiesel
BEIJING, July 25 (Xinhua) -- China's Ministry of Commerce on Thursday expressed major concern over planned protectionist measures by the European Union (EU) in the biodiesel industry, and warned that such measures will backfire.
The EU, the largest biodiesel market globally, imports biodiesel from China to meet its substantial consumption needs, which helps in achieving its green transformation and energy-saving goals, said ministry spokesperson He Yongqian at a regular press conference.
The remarks came after the European Biodiesel Board announced on July 19 local time that the European Commission, in a pre-disclosure document released the same day, revealed plans to impose provisional anti-dumping duties within the next four weeks ranging from 12.8 to 36.4 percent on biodiesel imports from China.
The EU's imposition of taxes on Chinese biodiesel will only increase product costs, undermine the interests of EU industries and consumers, and hinder the EU's green transition efforts as well as China-EU economic and trade cooperation, she said.
China advocates for the prudent use of trade remedy measures and urges the EU to avoid wantonly adopting protectionist policies. The country calls for resolving these issues through dialogue and consultation to address legitimate concerns, the spokesperson said. Xinhua
--------
EU Deforestation regulation: retail & wholesale calls for delay
EuroCommerce has today written to the president of the European Commission to express deep concern regarding the preparation for implementation of the Regulation for Deforestation-free products (EUDR). Reiterating our full support of its important objectives, the rules still need clarification on many important practical aspects to allow retailers and wholesalers to comply.
Retailers and wholesalers are particularly affected by the EUDR due to the broad range of products in scope they sell, involving thousands of direct suppliers, with tens of thousands of upstream suppliers, the large majority of which are SMEs.
The many questions we have shared with the Commission during the past year, have so far remained unanswered. In addition, the appropriateness and readiness of the Information System (IS) and the application programming interface (API) remains a major concern. These are however indispensable to allow the connection and automation which our sector needs, as we trade multiple products, sourced from thousands of different suppliers and regions.
This situation makes it impossible to prepare in an appropriate and timely manner. There is now a clear risk that supplies might be disrupted, that SME suppliers are excluded due to lack of preparation, and that major business investments needed for its implementation are misdirected.
To address this highly uncertain situation, we are now asking the Commission that the transition period is extended allowing a minimum of 6 months after the IT tools and the benchmarking system are ready, piloted and tested, and made available for data entry, together with access to the required training material to ensure optimal preparation for this important regulation. Euro Commerce
--------
Tripura News: State Govt Steps Up Palm Oil Cultivation To Reduce Imports
In a bid to reduce the state's dependence on palm oil imports, the Tripura government has been aggressively promoting palm oil cultivation across the state. The initiative, launched three years ago, has seen significant progress, especially in the Dhalai district.
The government has allocated funds for cultivating palm trees in hilly and plain areas across eight blocks of the district. The Horticulture Department has been at the forefront of this initiative, distributing saplings and providing technical guidance to farmers.
Notably, Tripura has been importing palm oil worth hundreds of crores of rupees from other states every year.
A plantation drive and awareness program was held in the Ganganagar block on Friday relating the Palm cultivation. The event was attended by MLA of the 44th Raima Valley constituency Nandita Debbarma, MDC Bhumikananda Reang, and officials from the Dhalai District Horticulture Department.
In the event, local farmers were encouraged to adopt palm oil cultivation. Officials from the Horticulture Department outlined the benefits of the initiative and the government's support for farmers.
District Horticulture Officer, Parimal Debbarma, informed the farmers that the government had set an ambitious target of making Tripura self-sufficient in palm oil production within the next four years. Enews Time
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Experts advocate lifting palm oil ban to preserve forex
Experts recently explained at an international conference in Colombo that a huge amount of money available for the country's finances is drained as millions of dollars are spent on importing edible oil to Sri Lanka.
There is a huge demand for palm oil, as more than 60 per cent of food products in supermarkets are made from palm oil.
This is the main reason why Sri Lanka should seriously consider lifting its ban on palm oil, the experts pointed out.
This was discussed at the Sustainable Futures Workshop on the benefits of using vegetable oil which was held at Lotus Tower in Colombo 10, organised by the Nucleus Foundation recently.
The event's principal partner was the Ministry of Agriculture and Industry, with assistance from Solidaridad, the Indonesian Embassy, and the Malaysian High Commission.
According to Dr. Shatadru Chattopadhayay, CEO of Solidaridad Asia, there is a chance that palm oil will flourish based on Sri Lanka's achievements in the tea industry. It will need more land to substitute other vegetable oils for palm oil. The two types of oils that palm oil offers—palm oil and palm oil—help to prolong the call. Furthermore, the production of palm oil promotes industrial growth and jobs. It's crucial to go beyond product evaluations and substitutes for this. Sunday TimesLK
--------
Indonesia’s Palm Oil Market Potential in Africa: Insights from Angola
Angola, located in the western part of Africa, is emerging as a promising market for Indonesian palm oil on the African continent. Several regions in Angola are ready to be developed for palm oil cultivation. This potential was highlighted during a recent visit by the Indonesian Ambassador to Namibia accredited to Angola, Wisnu Edi Pratignyo, on Thursday, July 25 2024.
Ambassador Wisnu met with Ambassador Carlos Sardinha, Director of International Cooperation at the Ministry of External Relations of Angola, to explore the potential for export and cooperation in the palm oil sector.
It was noted that Angola had previously imported palm oil seeds to be planted and developed domestically, but the initiative had not yet achieved optimal results.
“We are currently looking to import palm oil seeds and bring palm oil experts from Indonesia,” said Ambassador Carlos.
Currently, palm oil cultivation and processing in Angola are still traditional. It is hoped that Indonesian palm oil experts can assist in modernizing and improving the productivity of palm oil plantations.
Ambassador Wisnu welcomed Angola’s interest in developing palm oil plantations.
“Indonesia is the world’s largest producer of palm oil,” Ambassador Wisnu explained.
One Angolan importer mentioned that over 50% of processed palm oil products are sourced from Indonesia. The Angolan palm oil market remains open to raw palm oil products, which can be further processed in Angola.
Cooperation in palm oil products could fill the gap in agricultural and industrial collaboration between Indonesia and Angola. To this end, Ambassador Wisnu has invited Angolan palm oil stakeholders to utilize the Second Indonesia Africa Forum (IAF-2) in September 2024 to meet with relevant partners in the Indonesian palm oil industry. CNBC Africa
--------
Are fats really bad for our health? Some fats that you must consume
Fats have been a controversial topic in nutrition and is often thought of as something of a monster when it comes to healthy nutrition and diet. However, it is extremely important to understand and acknowledge that fats are an essential part of a balanced diet.
Dietary fats are saturated, unsaturated or trans fats depending on the molecular structure.
Saturated fats are fats with no double bonds between ..
Read more at:
http://timesofindia.indiatimes.com/articleshow/112041148.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
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|
July 26, 2024
Edo leverages collaboration in oil palm sector to boost economy
Edo State Governor, Mr. Godwin Obaseki, says his administration is leveraging the collaboration in the oil palm sector, attracting viable investors to invest in the state to boost the economic prosperity of the people.
Obaseki, who was represented by the Commissioner for Agriculture and Food Security, Hon. Stephen Odehenre, said this during the signing of the multi-party Memorandum of Understanding (MoU) concerning sustainable agricultural forest production and improved livelihood in the Okomu landscape.
This is the second phase of the initiative as the first phase enabled small-holder farmers to increase their livelihood within the Okomu Forest Reserve in Ovia South West Local Governments Area.
The Dutch Government has been supportive as a dependable partner in driving the initiative.
The signing of relevant documents signified the commencement of the second phase in the Sakponba Reserve for growing oil palm and to manage small-holder farmers to benefit from their inclusion in the oil palm markets.
The governor, who appreciated the Netherlands Government for its commitment and support, explained the benefits and gains of the initiative, saying, “The first phase of the programme and initiative enabled small holder farmers to increase their livelihood within the Okomu forest Reserve in Ovia South West Local Governments Area of Edo State, while in the second phase we are expecting scaling up in the Sakponba Reserve for growing oil palms and to manage small holder farmers to benefit from their inclusion in the oil palm markets. More Nigerian Observer News
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Negros Occidental mayor allays fears over P2-billion palm oil plantation project
NEGROS OCCIDENTAL, Philippines – Town officials of Candoni, Negros Occidental, denied on Wednesday, July 22, claims made by an organized farmers’ organization that about 100 farmers and their families have been adversely affected by the ongoing ground works for a P2-billion palm oil plantation project, and that it threatened to displace more in at least three villages in the municipality.
“It’s impossible,” Mayor Ray Ruiz told Rappler on Wednesday, July 24, citing an agreement between the town government and the Consunji group’s Hacienda Asia Plantation Incorporated (HAPI), which is undertaking the project.
On Tuesday, July 23, the Gatuslao Agro-Forestry, Banana, and Sugarcane Farmers’ Association (GABASFA) said the groundworks had so far affected farming communities in the villages of Agboy, Gatuslao, and Payawan. The group claimed that about 100 farming families were adversely affected.
GABASFA President Carlito Catacata told Rappler in an earlier interview that the project could displace about 1,000 families in the three barangays. Rappler
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Oil palm to be cultivated in 1 lakh acres in 2024-25
Hyderabad : Telangana set a target to expand oil palm cultivation to one lakh acres during the financial year. Presenting the budget for the financial year of 2024-25, Deputy Chief Minister and Finance Minister Mallu Bhatti Vikramarka, in the State Assembly on Thursday, said that Telangana produces 53.06 LMT of palm oil, cultivated in 12.12 lakh acres.
The State government decided to provide assistance to oil palm farmers under “Oil Palm Areas Expansion Under National Mission on Edible Oils-Oil Palm (NMEO-OP). The state set a target cultivation of oil palm in one lakh acres in 2024-25. “Registrations have already been made for 77,857 acres, and permissions have been given for 23,131 acres,” he added. Further, he said that steps have been taken to issue permission in July for plantation and drip for all the registrations done.
https://www.thehansindia.com/business/assocham-hosts-b2b-meets-with-saif-zone-officials-894610?infinitescroll=1
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India could triple its biofuel use and accelerate global deployment.
Most new biofuel demand comes from emerging economies, especially Brazil, Indonesia and India.
All three countries have robust biofuel policies, rising transport fuel demand and abundant feedstock potential. Ethanol and biodiesel use have expanded the most in these regions.
Although advanced economies including the European Union, the United States, Canada and Japan are also strengthening their transport policies, biofuels growth is constrained by factors such as rising electric vehicle adoption, vehicle efficiency improvements, technical limitations and high blending costs in some markets.
Renewable diesel and sustainable aviation fuel (SAF) are the primary growth segments in these regions.
Biofuel use is accelerating
India is now the world’s third largest producer and consumer of ethanol thanks to an almost tripling in production over the past five years.
It has potential to expand further with the right policies, keeping costs in check and securing sustainable feedstocks.
In 2018 India released its National Policy on Biofuels which set blending targets for ethanol (20% blending by 2030) and biodiesel (5% by...more Biofuels News
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International experts advocate sustainable economic growth for Sri Lanka through edible oil
There is a substantial drain on the country’s finances as millions of rupees are splurged on palm oil imports in Sri Lanka, experts recently pointed out at an international conference.
90% of food processing companies using palm oil and more than 60% of edible products in supermarkets being made from palm oil shows a high demand for palm oil, a major reason Sri Lanka should critically reflect on lifting the ban on palm oil, they added.
The workshop “Sustainable Futures” on the advantages of using vegetable oils was held at Cosmic by Citrus, Lotus Tower in Colombo 10, organised by the Nucleus Foundation. The Agriculture Ministry and Plantation Industries served as the main partners for the event, with support from the Malaysian High Commission, the Indonesian Embassy, and Solidaridad, an international civil society organisation.
Solidaridad Asia Managing Director Dr. Shatadru Chattopadhayay said that, given Sri Lanka’s achievements in tea, there is potential for similar success with palm oil. “Replacing palm oil with any other vegetable oil would require more land. Palm oil produces two kinds of oil: palm oil and palm kernel oil, which enhances the sustainability discourse. Additionally, palm oil cultivation creates employment and promotes industrialisation. It is essential to look beyond import substitution and consider the trade deficit.” FT LK
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Ministry mulls easing loan process for oil palm smallholders in Budget 2025
KUALA LUMPUR: The Ministry of Plantation and Commodities (KPK) will consider simplifying the loan process from banks to oil palm smallholders in the upcoming Budget 2025.
Its minister Datuk Seri Johari Abdul Ghani said the government, via Budget 2024, had allocated RM100 million hybrid scheme in the form of a 50 per cent grant and 50 per cent loan to implement the Smallholder Oil Palm Replanting Financing Incentive Scheme (TSPKS 2.0).
He said the ministry recognises the difficulties oil palm smallholders face when applying for bank loans for replanting purposes due to several conditions imposed by the banks.
"Although it is a 50 per cent loan and 50 per cent grant, we observed that it is quite difficult for some smallholders to secure financing because they cannot meet many criteria. More New Straits Times
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Neste posts deepest net loss in a decade as biorefining bets turn sour
Neste reported its first negative profits since 2014 in Q2 2024 as the Finnish refiner felt the impact of a global biofuels market downturn and extended outages at its Porvoo refinery.
In a July 25 earnings statement, Neste reported a net loss of Eur144 million ($156 million) in Q2, its first negative profit margin since Q4 2014 and deepest losses in over a decade. This was down sharply from Eur162 million in Q1 2024, dragging returns to levels the refiner said would be the lowest on the year.
As the largest player by capacity in the distressed European biofuels segment, a "very challenging" renewables market environment was a key concern for Neste. Pressured by competition from cheap imports, rival players have paused investment in large bio-refining projects, while in the US, Fulcrum BioEnergy has verged on collapse.
In July 25 earnings statement, the company reported a significant hit to its renewable fuels business in Q2, slashing its comparable sales margin to $382/mt from $800/mt the previous year. The company also revised down its maximum expected sales margin for 2024 from $650/mt to $580/mt.
"Clearly lower" returns reflected a slump in the European biodiesel spot prices and weaker incentives in the US, Neste said, while growing biodiesel production pushed feedstock prices higher.
Used cooking oil feedstock prices increased in both the EU and North America on the quarter, propping up operating costs, while soybean and palm oil prices eased slightly.
Platts assessed used cooking oil (UCO) FOB ARA costs at $1080/mt July 24, up $5/mt on the month and $127/mt on the year. Platts is a part of S&P Global Commodity Insights.
Faced with rising feedstock prices, Neste reduced its share of waste and residue inputs used for processing to 88% in Q2, down from 96% the previous year.
Lower US bioticket and renewable credit (Low Carbon Fuel Standard) prices also resulted in a loss of around Eur36 million ($39 million) on the quarter, Neste said, forecasting levels to hover below 2023 prices for the second half of the year. More SP Global
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PETRONAS, Enilive and Euglena reach Final Investment Decision to construct a biorefinery in Malaysia
Kuala Lumpur, Rome and Tokyo, 26 July 2024 – Petroliam Nasional Berhad (PETRONAS), Enilive S.p.A (a company directly controlled by Eni S.p.A.), and Euglena Co., Ltd. (Euglena) have reached the final investment decision (FID) to develop a biorefinery which will be located within PETRONAS’ Pengerang Integrated Complex (PIC), Johor, Malaysia.
The three companies will establish a joint venture company in Malaysia to construct and operate the biorefinery, with PETRONAS Mobility Lestari Sdn Bhd (PMLSB), a subsidiary of PETRONAS, and Enilive as the largest shareholders.
Targeted to be operational by the second half of 2028, the biorefinery will have the capability to produce Sustainable Aviation Fuel (SAF) and other biofuels such as Renewable Diesel/ Hydrogenated Vegetable Oil (HVO) to cater to the growing demands of the global aviation and transportation industries by tapping each partner’s expertise.
The construction of the biorefinery is expected to begin in the fourth quarter of this year, and upon completion, will have the capability to process about 650,000 tonnes per year of raw materials to produce SAF, HVO, and bio-naphtha.
The wastes and residue feedstocks for the biorefinery will comprise used vegetable oils, animal fats, waste from the processing of vegetable oils, and other biomass including microalgae oils which will be explored in the mid-term. Leveraging PETRONAS’ PIC integrated facilities and utilities, the biorefinery will be strategically located close to feedstock supply sources while having easy access to major international shipping lanes, enhancing its ability to meet the needs of its customers worldwide.
The purpose-built new biorefinery is designed to have full flexibility both in terms of feedstocks processability, with state-of-the-art Ecofining™ (a technology developed by Eni in cooperation with Honeywell UOP) and pre-treating unit, and products, with a configuration capable of maximising the production of SAF for aircraft as well as HVO. More ENI
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New Technology Must be Adopted by Indonesian Palm Oil Industry to Realize Net Zero Emissions
Jakarta – Palm oil is considered the commodity that is most ready to support the achievement of Net Zero Emission (NZE) or zero carbon emissions in the industrial sector by 2050.
Director of Marine and Plantation Industry, Directorate General of Agro Industry, Ministry of Industry (Kemenperin) Setiadi Diarta stated that the 2045 Indonesian Golden Palm Oil program has been directed to eliminate carbon emissions in the national palm oil industry.
"The key is the development of a sustainable and traceable industrial sector as a prerequisite for the acceptance of downstream palm oil products in the global market," he said in his statement in Jakarta, Wednesday.
Currently, he continued when giving a speech at the 2nd Technology and Talent Palm Oil Mill Indonesian (2nd TPOMI S2024) in Bandung, the Ministry of Industry is preparing the 2045 Golden Indonesian Palm Oil Roadmap.
It is hoped that by 2045, a sustainable upstream to downstream palm oil industry posture can be achieved and in line with the ultimate goals of independent, sovereign, advanced, equitable and inclusive industrial sector growth.
According to Setiadi, the economic value of the national upstream-downstream palm oil sector reaches more than IDR 750 trillion per year, equivalent to 3.5 percent of the National Gross Domestic Product (GDP) in 2023 which reaches IDR 20,892 trillion.
Director General of Plantations of the Ministry of Agriculture 2006-2010 Achmad Mangga Barani added that along with the development of the upstream sector, palm oil mills have grown rapidly, especially with the development of digitalization and Artificial Intelligence (AI), supported by computer science, palm oil mills in the world have also developed by producing more valuable and of course more efficient production.
"The development of palm oil mill technology in Indonesia must not stagnate but must follow current conditions," said the Chairman of the Sustainable Strategic Plantation Development Forum (FP2SB).
"Related to the increasingly advanced development of technology, this event aims to discuss and introduce practical technology that has been developed by practitioners both domestically and abroad," he said.
Good palm oil mill technology, he continued, namely that which is efficient and minimizes processing losses, can minimize oil loss.
Meanwhile, the Chairman of the Indonesian Bioenergy Experts Association (IKABI) Tatang Hernas Soerawidjaja stated that the production of crude palm oil (CPO) practiced by palm oil factories (PKS) currently uses technology that is more than 100 years old, thus wasteful of water and energy resources. More GAPKI
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KPK implements a strategy aimed at promoting palm oil, countering anti-palm oil propaganda
KUALA LUMPUR: The Ministry of Plantation and Commodities (KPK) implemented several strategies in promoting sustainable palm oil, including holding an anti-palm oil campaign at the global level.
Its minister, Datuk Seri Johari Abdul Ghani said, a targeted and continuous strategy needs to be implemented not only for promotional purposes but also to counter the anti-palm oil propaganda that is being played by producers of edible oil other than palm oil.
"We will continue to hold this anti-palm oil campaign at the global (level) through engagement sessions, that is, we will continue to hold bilateral engagements with policy makers in importing countries.
"Also we engage with the country's politicians, consumer associations, buyers, traders and importers as well as industry players and Non-Governmental Organizations (NGOs) involved who always use issues about propaganda this palm oil.
"This matter will continue and we will share complete information especially based on scientific studies and also authentic data (to related trading countries)," he said at the National Assembly today. BuletinTV3MY
Edo leverages collaboration in oil palm sector to boost economy
Edo State Governor, Mr. Godwin Obaseki, says his administration is leveraging the collaboration in the oil palm sector, attracting viable investors to invest in the state to boost the economic prosperity of the people.
Obaseki, who was represented by the Commissioner for Agriculture and Food Security, Hon. Stephen Odehenre, said this during the signing of the multi-party Memorandum of Understanding (MoU) concerning sustainable agricultural forest production and improved livelihood in the Okomu landscape.
This is the second phase of the initiative as the first phase enabled small-holder farmers to increase their livelihood within the Okomu Forest Reserve in Ovia South West Local Governments Area.
The Dutch Government has been supportive as a dependable partner in driving the initiative.
The signing of relevant documents signified the commencement of the second phase in the Sakponba Reserve for growing oil palm and to manage small-holder farmers to benefit from their inclusion in the oil palm markets.
The governor, who appreciated the Netherlands Government for its commitment and support, explained the benefits and gains of the initiative, saying, “The first phase of the programme and initiative enabled small holder farmers to increase their livelihood within the Okomu forest Reserve in Ovia South West Local Governments Area of Edo State, while in the second phase we are expecting scaling up in the Sakponba Reserve for growing oil palms and to manage small holder farmers to benefit from their inclusion in the oil palm markets. More Nigerian Observer News
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Negros Occidental mayor allays fears over P2-billion palm oil plantation project
NEGROS OCCIDENTAL, Philippines – Town officials of Candoni, Negros Occidental, denied on Wednesday, July 22, claims made by an organized farmers’ organization that about 100 farmers and their families have been adversely affected by the ongoing ground works for a P2-billion palm oil plantation project, and that it threatened to displace more in at least three villages in the municipality.
“It’s impossible,” Mayor Ray Ruiz told Rappler on Wednesday, July 24, citing an agreement between the town government and the Consunji group’s Hacienda Asia Plantation Incorporated (HAPI), which is undertaking the project.
On Tuesday, July 23, the Gatuslao Agro-Forestry, Banana, and Sugarcane Farmers’ Association (GABASFA) said the groundworks had so far affected farming communities in the villages of Agboy, Gatuslao, and Payawan. The group claimed that about 100 farming families were adversely affected.
GABASFA President Carlito Catacata told Rappler in an earlier interview that the project could displace about 1,000 families in the three barangays. Rappler
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Oil palm to be cultivated in 1 lakh acres in 2024-25
Hyderabad : Telangana set a target to expand oil palm cultivation to one lakh acres during the financial year. Presenting the budget for the financial year of 2024-25, Deputy Chief Minister and Finance Minister Mallu Bhatti Vikramarka, in the State Assembly on Thursday, said that Telangana produces 53.06 LMT of palm oil, cultivated in 12.12 lakh acres.
The State government decided to provide assistance to oil palm farmers under “Oil Palm Areas Expansion Under National Mission on Edible Oils-Oil Palm (NMEO-OP). The state set a target cultivation of oil palm in one lakh acres in 2024-25. “Registrations have already been made for 77,857 acres, and permissions have been given for 23,131 acres,” he added. Further, he said that steps have been taken to issue permission in July for plantation and drip for all the registrations done.
https://www.thehansindia.com/business/assocham-hosts-b2b-meets-with-saif-zone-officials-894610?infinitescroll=1
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India could triple its biofuel use and accelerate global deployment.
Most new biofuel demand comes from emerging economies, especially Brazil, Indonesia and India.
All three countries have robust biofuel policies, rising transport fuel demand and abundant feedstock potential. Ethanol and biodiesel use have expanded the most in these regions.
Although advanced economies including the European Union, the United States, Canada and Japan are also strengthening their transport policies, biofuels growth is constrained by factors such as rising electric vehicle adoption, vehicle efficiency improvements, technical limitations and high blending costs in some markets.
Renewable diesel and sustainable aviation fuel (SAF) are the primary growth segments in these regions.
Biofuel use is accelerating
India is now the world’s third largest producer and consumer of ethanol thanks to an almost tripling in production over the past five years.
It has potential to expand further with the right policies, keeping costs in check and securing sustainable feedstocks.
In 2018 India released its National Policy on Biofuels which set blending targets for ethanol (20% blending by 2030) and biodiesel (5% by...more Biofuels News
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International experts advocate sustainable economic growth for Sri Lanka through edible oil
There is a substantial drain on the country’s finances as millions of rupees are splurged on palm oil imports in Sri Lanka, experts recently pointed out at an international conference.
90% of food processing companies using palm oil and more than 60% of edible products in supermarkets being made from palm oil shows a high demand for palm oil, a major reason Sri Lanka should critically reflect on lifting the ban on palm oil, they added.
The workshop “Sustainable Futures” on the advantages of using vegetable oils was held at Cosmic by Citrus, Lotus Tower in Colombo 10, organised by the Nucleus Foundation. The Agriculture Ministry and Plantation Industries served as the main partners for the event, with support from the Malaysian High Commission, the Indonesian Embassy, and Solidaridad, an international civil society organisation.
Solidaridad Asia Managing Director Dr. Shatadru Chattopadhayay said that, given Sri Lanka’s achievements in tea, there is potential for similar success with palm oil. “Replacing palm oil with any other vegetable oil would require more land. Palm oil produces two kinds of oil: palm oil and palm kernel oil, which enhances the sustainability discourse. Additionally, palm oil cultivation creates employment and promotes industrialisation. It is essential to look beyond import substitution and consider the trade deficit.” FT LK
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Ministry mulls easing loan process for oil palm smallholders in Budget 2025
KUALA LUMPUR: The Ministry of Plantation and Commodities (KPK) will consider simplifying the loan process from banks to oil palm smallholders in the upcoming Budget 2025.
Its minister Datuk Seri Johari Abdul Ghani said the government, via Budget 2024, had allocated RM100 million hybrid scheme in the form of a 50 per cent grant and 50 per cent loan to implement the Smallholder Oil Palm Replanting Financing Incentive Scheme (TSPKS 2.0).
He said the ministry recognises the difficulties oil palm smallholders face when applying for bank loans for replanting purposes due to several conditions imposed by the banks.
"Although it is a 50 per cent loan and 50 per cent grant, we observed that it is quite difficult for some smallholders to secure financing because they cannot meet many criteria. More New Straits Times
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Neste posts deepest net loss in a decade as biorefining bets turn sour
Neste reported its first negative profits since 2014 in Q2 2024 as the Finnish refiner felt the impact of a global biofuels market downturn and extended outages at its Porvoo refinery.
In a July 25 earnings statement, Neste reported a net loss of Eur144 million ($156 million) in Q2, its first negative profit margin since Q4 2014 and deepest losses in over a decade. This was down sharply from Eur162 million in Q1 2024, dragging returns to levels the refiner said would be the lowest on the year.
As the largest player by capacity in the distressed European biofuels segment, a "very challenging" renewables market environment was a key concern for Neste. Pressured by competition from cheap imports, rival players have paused investment in large bio-refining projects, while in the US, Fulcrum BioEnergy has verged on collapse.
In July 25 earnings statement, the company reported a significant hit to its renewable fuels business in Q2, slashing its comparable sales margin to $382/mt from $800/mt the previous year. The company also revised down its maximum expected sales margin for 2024 from $650/mt to $580/mt.
"Clearly lower" returns reflected a slump in the European biodiesel spot prices and weaker incentives in the US, Neste said, while growing biodiesel production pushed feedstock prices higher.
Used cooking oil feedstock prices increased in both the EU and North America on the quarter, propping up operating costs, while soybean and palm oil prices eased slightly.
Platts assessed used cooking oil (UCO) FOB ARA costs at $1080/mt July 24, up $5/mt on the month and $127/mt on the year. Platts is a part of S&P Global Commodity Insights.
Faced with rising feedstock prices, Neste reduced its share of waste and residue inputs used for processing to 88% in Q2, down from 96% the previous year.
Lower US bioticket and renewable credit (Low Carbon Fuel Standard) prices also resulted in a loss of around Eur36 million ($39 million) on the quarter, Neste said, forecasting levels to hover below 2023 prices for the second half of the year. More SP Global
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PETRONAS, Enilive and Euglena reach Final Investment Decision to construct a biorefinery in Malaysia
Kuala Lumpur, Rome and Tokyo, 26 July 2024 – Petroliam Nasional Berhad (PETRONAS), Enilive S.p.A (a company directly controlled by Eni S.p.A.), and Euglena Co., Ltd. (Euglena) have reached the final investment decision (FID) to develop a biorefinery which will be located within PETRONAS’ Pengerang Integrated Complex (PIC), Johor, Malaysia.
The three companies will establish a joint venture company in Malaysia to construct and operate the biorefinery, with PETRONAS Mobility Lestari Sdn Bhd (PMLSB), a subsidiary of PETRONAS, and Enilive as the largest shareholders.
Targeted to be operational by the second half of 2028, the biorefinery will have the capability to produce Sustainable Aviation Fuel (SAF) and other biofuels such as Renewable Diesel/ Hydrogenated Vegetable Oil (HVO) to cater to the growing demands of the global aviation and transportation industries by tapping each partner’s expertise.
The construction of the biorefinery is expected to begin in the fourth quarter of this year, and upon completion, will have the capability to process about 650,000 tonnes per year of raw materials to produce SAF, HVO, and bio-naphtha.
The wastes and residue feedstocks for the biorefinery will comprise used vegetable oils, animal fats, waste from the processing of vegetable oils, and other biomass including microalgae oils which will be explored in the mid-term. Leveraging PETRONAS’ PIC integrated facilities and utilities, the biorefinery will be strategically located close to feedstock supply sources while having easy access to major international shipping lanes, enhancing its ability to meet the needs of its customers worldwide.
The purpose-built new biorefinery is designed to have full flexibility both in terms of feedstocks processability, with state-of-the-art Ecofining™ (a technology developed by Eni in cooperation with Honeywell UOP) and pre-treating unit, and products, with a configuration capable of maximising the production of SAF for aircraft as well as HVO. More ENI
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New Technology Must be Adopted by Indonesian Palm Oil Industry to Realize Net Zero Emissions
Jakarta – Palm oil is considered the commodity that is most ready to support the achievement of Net Zero Emission (NZE) or zero carbon emissions in the industrial sector by 2050.
Director of Marine and Plantation Industry, Directorate General of Agro Industry, Ministry of Industry (Kemenperin) Setiadi Diarta stated that the 2045 Indonesian Golden Palm Oil program has been directed to eliminate carbon emissions in the national palm oil industry.
"The key is the development of a sustainable and traceable industrial sector as a prerequisite for the acceptance of downstream palm oil products in the global market," he said in his statement in Jakarta, Wednesday.
Currently, he continued when giving a speech at the 2nd Technology and Talent Palm Oil Mill Indonesian (2nd TPOMI S2024) in Bandung, the Ministry of Industry is preparing the 2045 Golden Indonesian Palm Oil Roadmap.
It is hoped that by 2045, a sustainable upstream to downstream palm oil industry posture can be achieved and in line with the ultimate goals of independent, sovereign, advanced, equitable and inclusive industrial sector growth.
According to Setiadi, the economic value of the national upstream-downstream palm oil sector reaches more than IDR 750 trillion per year, equivalent to 3.5 percent of the National Gross Domestic Product (GDP) in 2023 which reaches IDR 20,892 trillion.
Director General of Plantations of the Ministry of Agriculture 2006-2010 Achmad Mangga Barani added that along with the development of the upstream sector, palm oil mills have grown rapidly, especially with the development of digitalization and Artificial Intelligence (AI), supported by computer science, palm oil mills in the world have also developed by producing more valuable and of course more efficient production.
"The development of palm oil mill technology in Indonesia must not stagnate but must follow current conditions," said the Chairman of the Sustainable Strategic Plantation Development Forum (FP2SB).
"Related to the increasingly advanced development of technology, this event aims to discuss and introduce practical technology that has been developed by practitioners both domestically and abroad," he said.
Good palm oil mill technology, he continued, namely that which is efficient and minimizes processing losses, can minimize oil loss.
Meanwhile, the Chairman of the Indonesian Bioenergy Experts Association (IKABI) Tatang Hernas Soerawidjaja stated that the production of crude palm oil (CPO) practiced by palm oil factories (PKS) currently uses technology that is more than 100 years old, thus wasteful of water and energy resources. More GAPKI
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KPK implements a strategy aimed at promoting palm oil, countering anti-palm oil propaganda
KUALA LUMPUR: The Ministry of Plantation and Commodities (KPK) implemented several strategies in promoting sustainable palm oil, including holding an anti-palm oil campaign at the global level.
Its minister, Datuk Seri Johari Abdul Ghani said, a targeted and continuous strategy needs to be implemented not only for promotional purposes but also to counter the anti-palm oil propaganda that is being played by producers of edible oil other than palm oil.
"We will continue to hold this anti-palm oil campaign at the global (level) through engagement sessions, that is, we will continue to hold bilateral engagements with policy makers in importing countries.
"Also we engage with the country's politicians, consumer associations, buyers, traders and importers as well as industry players and Non-Governmental Organizations (NGOs) involved who always use issues about propaganda this palm oil.
"This matter will continue and we will share complete information especially based on scientific studies and also authentic data (to related trading countries)," he said at the National Assembly today. BuletinTV3MY
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July 25, 2024
Indonesia affirmed its commitment to ambitious climate targets and biodiversity conservation at COFO
Indonesian Minister of Environment and Forestry, Siti Nurbaya, affirmed Indonesia’s commitment to ambitious climate targets and biodiversity conservation at the 27th Committee on Forestry (COFO) meeting in Rome. In the Agenda Item 4 session entitled “State of the World’s Forests 2024: Forestry sector innovation towards a more sustainable future,” Minister Siti appreciated the FAO publication “State of the World’s Forests 2024” which showed a decline in global deforestation.
In her official statement obtained by InfoSAWIT , Thursday (25/07/2024), Minister Siti revealed that deforestation in Indonesia has decreased by 8.4 percent in 2021-2022. "We appreciate the good news in SOFO which shows that there has been a significant decrease in deforestation in several countries, including Indonesia," she said.
Indonesia has reaffirmed its climate targets by submitting an enhanced NDC in 2022. Minister Siti revealed that Indonesia's emission reductions reached 47.3% in 2020, 43.8% in 2021, and 41.6% in 2022 compared to the annual baseline, approaching the NDC target of 43.2% with international cooperation and exceeding the national capacity target of 31.89%.
Indonesia’s approach to managing natural resources and implementing climate action is systematic and integrated through 15 climate action clusters under the FOLU Net Sink 2030 Operational Plan. This plan is legally binding and not just a paper commitment. The FOLU Net Sink 2030 initiative also prioritizes the protection of species such as orangutans, elephants, tigers, rhinos, and various other species to ensure their populations continue to thrive and avoid extinction. More Info Sawit
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New European rules to curb deforestation have worrying flaws, scientists say
European Union faces calls to delay import policy set to take effect late this year
The European Union is facing growing calls to delay and rethink new agricultural import rules aimed at curbing deforestation. One concern, some scientists say, is that regulators and companies lack the high-quality forest mapping data needed to properly implement the rules, which are scheduled to take effect at the end of this year. Others fear inadequate maps could make it especially hard for small farmers in the Global South to prove their crops didn’t come from recently deforested land, a key requirement of the new rules.
There are myriad problems that need to be assessed before the rules take effect, researchers say. “It is not about pro and contra, but about getting it right,” says Meine van Noordwijk, a senior scientist at the World Agroforestry Center in Indonesia.
Last week, Ursula von der Leyen, the newly reelected president of the European Commission, hinted that some changes could be coming to the policy. In a 19 July statement, she said the EU would not abandon its environmental goals, but added: “We need a more systematic approach to assessing the impact of our laws on non-EU countries, and we need to provide more targeted support to help them adjust to and benefit from those laws.” More Science
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Germany’s Supply-Chain Law Tries to Balance Growth and Human Rights
Keeping global supply chains ethical and sustainable is a challenge. Germany, the world’s third-biggest exporter, implemented a law in 2023 that aimed to do just that.
After about 5,700 companies were obliged to implement a strict risk-management and analysis system, complemented by a report obligation and the threat of fines of as much as €8 million ($8.7 million), European legislation known as CSDDD was approved in May to introduce and harmonize supply chain rules across the 27-nation bloc.
Since then, there have been discussions on how to implement the rule in German national law. Companies sounded alarm bells that they would face a double burden while NGOs warned that the German law should not be weakened.
Read More: German Business Expectations Fall, Deepening Rebound Concerns
While the European initiative has a wider scope of civil liability, it has been watered down to include companies with more than 5,000 employees.
Although firms with more than 1,000 employees and a total revenue of €450 million ($488 million) per year will be held accountable after five years, the legislation would reduce the number of already obliged companies under the German law by up to two-thirds now, according to the NGO Initiative Lieferkettengesetz. Bloomberg
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MORE IRS GUIDANCE NEEDED ON CLEAN FUEL PRODUCTION TAX CREDIT
The senior policy director at Missouri Soybeans says more guidance is needed from the Internal Revenue Service on a Clean Fuel Production Credit that could incentivize soybean oil’s use in Sustainable Aviation Fuel.
Casey Wasser tells Brownfield updates to the 45Z tax credit in the Inflation Reduction Act has devalued soybean oil as a feedstock when it comes to carbon intensity.
“We’re really concerned with what the IRS has pushed out,” he says. “It’s really just a bureaucratic mechanism to score carbon intensity and we don’t agree they’ve taken in the full greenhouse gas lifecycle emissions to how some of these feedstocks are produced.”
Wasser says U.S. laws need to support U.S. feedstocks and there’s been an increase in cooking oil imports from China.
“We’ve seen a massive increase in imports of used cooking oil since the Inflation Reduction Act was passed. Some reports suggest it could be fraudulent, but none of it’s been audited. What I mean by fraudulent is that it’s claimed to be used cooking oil, but maybe it’s got traces of palm oil in it and other things.”
He says that and many unknown variables have reduced the value of U.S. soybean oil. Wasser says the American Soybean Association has asked Congress to get involved. More Brownfield AgNews
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Bosnian-American Biofuel Fraud Case Moves Forward in Belgium
Two Bosnian-Americans accused of being “ringleaders” in a US$3.4-million biofuel fraud case should be released on bail set at 50,000 euro (US$54,245) each, a court in Antwerp ruled on Tuesday.
The European Public Prosecution Office (EPPO) appealed the ruling. The suspects will remain under electronic surveillance until the appellate court reaches a decision in two weeks.
Paula Telo Alves, an EPPO press officer, told OCCRP that she could not provide more details about the case as “this is an ongoing investigation, and there is nothing else that we can share at this moment, in order not to endanger the ongoing procedures and their outcome.”
Belgian police arrested the men in May following investigations of illegal imports of biodiesel into the European Union, according to the EPPO.
“The two suspects are understood to be the ringleaders of a criminal organisation that imported biodiesel of U.S. origin into the EU, while fraudulently declaring its origin as Morocco,” the EPPO said in a June 28 statement.
OCCRP published an investigation last year showing how the alleged fraudsters exploited EU climate policy by importing cheap traditional biofuel, while claiming the product was made from used cooking oil (UCO).
The EU subsidizes the purchase of biodiesel made from UCO, which is more expensive to manufacture than fuel derived from cheaper sources like soybeans and palm oil, crops that are linked to deforestation.
The union has mandated a target of 14% renewable fuels by 2030. UCO-based biodiesels are particularly attractive because, since they are converted waste, some member states count them double towards the target.
In its June statement, the EPPO noted that two lawyers for the Bosnian-Americans were also arrested after they “allegedly attempted to move and hide potentially incriminating evidence for their clients.”
OCCRP reported last year that the Bosnian-Americans owned a firm in Bosnia and Herzegovina that falsely claimed to be making UCO-based biofuel. Instead, it mislabeled cheap soy biofuel and sold it to at least 17 companies in nine countries.
An unpublished report by the EU’s anti-fraud office alleged that the company’s owners falsified paperwork to avoid paying millions of euros in customs duties. OCCRP
Indonesia affirmed its commitment to ambitious climate targets and biodiversity conservation at COFO
Indonesian Minister of Environment and Forestry, Siti Nurbaya, affirmed Indonesia’s commitment to ambitious climate targets and biodiversity conservation at the 27th Committee on Forestry (COFO) meeting in Rome. In the Agenda Item 4 session entitled “State of the World’s Forests 2024: Forestry sector innovation towards a more sustainable future,” Minister Siti appreciated the FAO publication “State of the World’s Forests 2024” which showed a decline in global deforestation.
In her official statement obtained by InfoSAWIT , Thursday (25/07/2024), Minister Siti revealed that deforestation in Indonesia has decreased by 8.4 percent in 2021-2022. "We appreciate the good news in SOFO which shows that there has been a significant decrease in deforestation in several countries, including Indonesia," she said.
Indonesia has reaffirmed its climate targets by submitting an enhanced NDC in 2022. Minister Siti revealed that Indonesia's emission reductions reached 47.3% in 2020, 43.8% in 2021, and 41.6% in 2022 compared to the annual baseline, approaching the NDC target of 43.2% with international cooperation and exceeding the national capacity target of 31.89%.
Indonesia’s approach to managing natural resources and implementing climate action is systematic and integrated through 15 climate action clusters under the FOLU Net Sink 2030 Operational Plan. This plan is legally binding and not just a paper commitment. The FOLU Net Sink 2030 initiative also prioritizes the protection of species such as orangutans, elephants, tigers, rhinos, and various other species to ensure their populations continue to thrive and avoid extinction. More Info Sawit
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New European rules to curb deforestation have worrying flaws, scientists say
European Union faces calls to delay import policy set to take effect late this year
The European Union is facing growing calls to delay and rethink new agricultural import rules aimed at curbing deforestation. One concern, some scientists say, is that regulators and companies lack the high-quality forest mapping data needed to properly implement the rules, which are scheduled to take effect at the end of this year. Others fear inadequate maps could make it especially hard for small farmers in the Global South to prove their crops didn’t come from recently deforested land, a key requirement of the new rules.
There are myriad problems that need to be assessed before the rules take effect, researchers say. “It is not about pro and contra, but about getting it right,” says Meine van Noordwijk, a senior scientist at the World Agroforestry Center in Indonesia.
Last week, Ursula von der Leyen, the newly reelected president of the European Commission, hinted that some changes could be coming to the policy. In a 19 July statement, she said the EU would not abandon its environmental goals, but added: “We need a more systematic approach to assessing the impact of our laws on non-EU countries, and we need to provide more targeted support to help them adjust to and benefit from those laws.” More Science
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Germany’s Supply-Chain Law Tries to Balance Growth and Human Rights
Keeping global supply chains ethical and sustainable is a challenge. Germany, the world’s third-biggest exporter, implemented a law in 2023 that aimed to do just that.
After about 5,700 companies were obliged to implement a strict risk-management and analysis system, complemented by a report obligation and the threat of fines of as much as €8 million ($8.7 million), European legislation known as CSDDD was approved in May to introduce and harmonize supply chain rules across the 27-nation bloc.
Since then, there have been discussions on how to implement the rule in German national law. Companies sounded alarm bells that they would face a double burden while NGOs warned that the German law should not be weakened.
Read More: German Business Expectations Fall, Deepening Rebound Concerns
While the European initiative has a wider scope of civil liability, it has been watered down to include companies with more than 5,000 employees.
Although firms with more than 1,000 employees and a total revenue of €450 million ($488 million) per year will be held accountable after five years, the legislation would reduce the number of already obliged companies under the German law by up to two-thirds now, according to the NGO Initiative Lieferkettengesetz. Bloomberg
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MORE IRS GUIDANCE NEEDED ON CLEAN FUEL PRODUCTION TAX CREDIT
The senior policy director at Missouri Soybeans says more guidance is needed from the Internal Revenue Service on a Clean Fuel Production Credit that could incentivize soybean oil’s use in Sustainable Aviation Fuel.
Casey Wasser tells Brownfield updates to the 45Z tax credit in the Inflation Reduction Act has devalued soybean oil as a feedstock when it comes to carbon intensity.
“We’re really concerned with what the IRS has pushed out,” he says. “It’s really just a bureaucratic mechanism to score carbon intensity and we don’t agree they’ve taken in the full greenhouse gas lifecycle emissions to how some of these feedstocks are produced.”
Wasser says U.S. laws need to support U.S. feedstocks and there’s been an increase in cooking oil imports from China.
“We’ve seen a massive increase in imports of used cooking oil since the Inflation Reduction Act was passed. Some reports suggest it could be fraudulent, but none of it’s been audited. What I mean by fraudulent is that it’s claimed to be used cooking oil, but maybe it’s got traces of palm oil in it and other things.”
He says that and many unknown variables have reduced the value of U.S. soybean oil. Wasser says the American Soybean Association has asked Congress to get involved. More Brownfield AgNews
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Bosnian-American Biofuel Fraud Case Moves Forward in Belgium
Two Bosnian-Americans accused of being “ringleaders” in a US$3.4-million biofuel fraud case should be released on bail set at 50,000 euro (US$54,245) each, a court in Antwerp ruled on Tuesday.
The European Public Prosecution Office (EPPO) appealed the ruling. The suspects will remain under electronic surveillance until the appellate court reaches a decision in two weeks.
Paula Telo Alves, an EPPO press officer, told OCCRP that she could not provide more details about the case as “this is an ongoing investigation, and there is nothing else that we can share at this moment, in order not to endanger the ongoing procedures and their outcome.”
Belgian police arrested the men in May following investigations of illegal imports of biodiesel into the European Union, according to the EPPO.
“The two suspects are understood to be the ringleaders of a criminal organisation that imported biodiesel of U.S. origin into the EU, while fraudulently declaring its origin as Morocco,” the EPPO said in a June 28 statement.
OCCRP published an investigation last year showing how the alleged fraudsters exploited EU climate policy by importing cheap traditional biofuel, while claiming the product was made from used cooking oil (UCO).
The EU subsidizes the purchase of biodiesel made from UCO, which is more expensive to manufacture than fuel derived from cheaper sources like soybeans and palm oil, crops that are linked to deforestation.
The union has mandated a target of 14% renewable fuels by 2030. UCO-based biodiesels are particularly attractive because, since they are converted waste, some member states count them double towards the target.
In its June statement, the EPPO noted that two lawyers for the Bosnian-Americans were also arrested after they “allegedly attempted to move and hide potentially incriminating evidence for their clients.”
OCCRP reported last year that the Bosnian-Americans owned a firm in Bosnia and Herzegovina that falsely claimed to be making UCO-based biofuel. Instead, it mislabeled cheap soy biofuel and sold it to at least 17 companies in nine countries.
An unpublished report by the EU’s anti-fraud office alleged that the company’s owners falsified paperwork to avoid paying millions of euros in customs duties. OCCRP
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July 24, 2024
Europe’s Push to Protect Rainforests Is Angering Trade Partners. Here’s Why
Economic superpowers often turn to trade as a way to achieve their foreign policy goals. So it’s no surprise that the European Union, in its determination to be a global leader in the fight against climate change, has made forest preservation a condition for doing business with the bloc. From the end of the year, the EU will enforce a ban on imports of raw materials produced on newly deforested land anywhere in the world. But the way it’s going about it has prompted a backlash from industries and other trading nations, raising the risk that the landmark initiative may be delayed. More Bloomberg
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Indonesia plans increase in palm oil-based biodiesel in 2025
JAKARTA (July 24): Indonesia, the world's biggest palm oil producer, is testing fuel with a view to increasing to 40% from 35% the share of palm-oil blended into biodiesel next year, the energy ministry said.
If implemented, the B40 mandate could increase biodiesel consumption to up to 16 million kilolitres (KL) next year, the ministry said, from 13 million KL estimated to be consumed in 2024.
"We hope the trials could be finished in December, so that full implementation of B40 could be carried out in 2025," energy ministry senior official Eniya Listiani Dewi said in a statement on Tuesday.
The Indonesian Biofuel Producers Association (APROBI) said the industry had the capacity to meet B40 demand, with installed capacity expected to rise to 20 million KL annually next year from 18 million KL now.
"However we will need more raw materials to meet B40 demand," Ernest Gunawan, the secretary general of APROBI told Reuters on Wednesday.
The biodiesel industry would need 13.9 million metric tonnes of crude palm oil to produce 16 million KL biodiesel next year, from the estimated 11 million tonnes needed this year, he added.
Indonesia's biggest palm oil association Gapki said a decline in exports meant there would be enough raw materials to supply the B40 mandate for now.
But the industry would need to assess "which one would be more valuable", Gapki chairman Eddy Martono said, referring to the possibility an increase in exports would make supplying the domestic market less viable.Indonesia's palm oil output is estimated to reach 54.4 million tonnes in 2024, a 2.26% increase from last year, while exports are expected to decline by 2.47% to 29.5 million tonnes as domestic consumption rose, driven by biodiesel mandate.
The ministry had tested the biodiesel, mixed with 40% of palm oil, on a train for the first time earlier this week, while planning to test the B40 mix on agriculture machinery, power plants and in the shipping industry, it said. The Edge Malaysia
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Jokowi orders for acceleration of coconut waste processing into bioenergy
President Joko “Jokowi” Widodo has called for the swift advancement of processing industrial coconut waste into bioenergy and biofuels while observing vast opportunities ahead for Indonesia.
Indonesia, with 3.8 million hectares of coconut plantations producing 2.8 million tons annually, is the world’s second-largest coconut producer, with North Sulawesi and Riau as the leading regions.
“The green economy presents a vast opportunity for our country,” Jokowi said at the 51st International Coconut Conference in Surabaya on Monday, July 22, 2024.
He noted that Indonesia’s coconut exports generate US$1.55 billion in revenue annually and stressed the need for research to develop high-yield coconut varieties, modern cultivation methods, and efficient harvesting techniques. The president the potential of using coconut waste for bioenergy and bioavtur production.
Previously, Jokowi approved a proposal to expand the role of the Oil Palm Plantation Fund Management Agency (BPDPKS) that will now manage funds not only from the palm oil industry but also from the cocoa and coconut industries.
The decision was made upon a limited Cabinet meeting chaired by the president at the Merdeka Palace in Jakarta on July 10, 2024. More Indonesia Business Post
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Indonesia conducts successful test on diesel trains using 40 per cent palm oil blending
JAKARTA (Agencies / Jakarta Post-ANN): Indonesia has successfully conducted its first test of diesel locomotives running on fuel containing 40 per cent palm oil, as part of the government's move to increase the use of palm-based biodiesel fuel in various types of transportation.
The programme, known as Biodiesel 40 (B40), tests the feasibility of a cleaner fuel composed of 40 per cent fatty acid methyl ester (FAME) derived from crude palm oil and 60 per cent of fossil fuel diesel. This blend aims to provide an alternative fuel source for vehicles.
Collaboratively run by the country's Energy and Mineral Resources Ministry and state-owned railway operator PT KAI, the trial on Monday used the Bogowonto train in the trip between the Lempuyangan station in Yogyakarta and the Pasar Senen station in capital Jakarta.
In a statement published on Tuesday, the ministry's director general of new and renewable energy Eniya Listiani Dewi, said the trial aimed to test the durability of the Bogowonto train's generator set for 1,200 hours.
With an estimated duration of 22 hours per round trip from Lempuyangan to Pasar Senen, Dewi estimated that the results would be achieved in approximately two months.
"We hope that all trials can be completed this December so that the use of B40 can fully be carried out in 2025," Dewi added.
Indonesia’s biodiesel uses the highest proportion of palm oil in the world, and its B40 program aims to reduce the country’s reliance on imported diesel while ramping up demand for domestically produced vegetable oils. The StarMY
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Only 74% of oil palm smallholders are MSPO-certified, Parliament told
KUALA LUMPUR (July 24): The Ministry of Plantation and Commodities said on Wednesday the percentage of private smallholders with Malaysian Sustainable Palm Oil (MSPO) certification stood at 73.88% as of June 30.
During a question-and-answer session in the Dewan Negara, Deputy Plantation and Commodities Minister Datuk Chan Foong Hin said the percentage was at an unsatisfactory level.
"We want to go to a higher level, with the overall level for all private or organised smallholders and estates to reach 85% MSPO certification," he said in reply to Senator Abdul Halim Suleiman's supplementary question about the assistance process for smallholders.
According to Chan, incentives to private smallholders are given through the Malaysian Palm Oil Board (MPOB), where the cost of auditing along with personal protective equipment and poison storage racks, good agricultural practice training, and MSPO documentation are given free of charge.
"This incentive is still implemented for smallholders to reduce their financial burden to maintain MSPO certification when it expires," he said.
Chan added that briefings and training were conducted for the palm industry to assist in compliance with MSPO standards.
"The MPOB also created a Sustainable Palm Oil Cluster to facilitate the management of smallholders in groups under the management of new officers who will provide training to smallholders on MSPO certification.
"A group training system has been designed and implemented to ensure smallholders receive continuous education on sustainable farm management methods and compliance with MSPO certification standards," Chan said. The EdgeMY
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Transparency Matters: Decoding Palm Oil Labels in Skincare
By- Dr. Geetika Mittal Gupta
Palm oil, a versatile ingredient in the skincare industry, has been under increased scrutiny due to environmental and ethical concerns. Yet, it remains a vital component in many skincare products due to its unique properties. In this article, Dr Geetika explains why palm oil derivatives are so prevalent in skincare, the benefits they offer, and how to navigate labels to ensure sustainability.
The Role of Palm Oil Derivatives in Skincare
Palm oil and its derivatives are widely used in skincare products for several reasons. Their chemical structure and versatility make them beneficial in a variety of applications. Here’s a closer look at why these derivatives are important:
1. Palm Oil: This is rich in fatty acids, primarily palmitic acid and oleic acid, which provide excellent emollient properties. These fatty acids help to moisturize and soften the skin, making palm oil a key ingredient in creams and lotions.
2. Palm Kernel Oil: Contains lauric acid, which has antibacterial and antifungal properties. This makes it useful in skincare products designed to cleanse and protect the skin from harmful microbes.
3. Palm Stearine and Palm Olein: These fractions are derived from palm oil through a process called fractionation. Palm stearine has a higher melting point, making it a good thickening agent in creams and body butters, providing stability to the product. Palm olein is more liquid, offering a smooth texture and making it ideal for lighter formulations like lotions and oils.
4. Elaeis Guineensis: As the botanical name for the oil palm tree, this encompasses all palm oil-derived products. Its primary benefits include moisturizing, conditioning, and providing a rich source of antioxidants like Vitamin E, which help protect the skin from free radical damage.
5. Glyceryl Stearate: This derivative acts as an emulsifier, helping to combine oil and water-based ingredients in skincare products. It contributes to a smooth and stable texture, preventing products from separating.
6. Cetyl Alcohol and Stearyl Alcohol: These are fatty alcohols derived from palm oil. They act as emollients, providing a creamy texture and enhancing the skin’s softness. They also help thicken and stabilize products.
7. Sodium Lauryl Sulfate: Often used as a surfactant and foaming agent, it helps create the rich lather in soaps and cleansers. It is effective in removing dirt and oil from the skin’s surface.
Addressing Environmental Concerns
While palm oil derivatives offer many benefits, their environmental impact cannot be ignored. Unsustainable palm oil production has led to deforestation, habitat loss, and greenhouse gas emissions. However, the demand for these derivatives in skincare remains high due to their functionality.
Striking a Balance: Sustainable Palm Oil
Given the widespread use of palm oil derivatives in skincare, the key is to support sustainable sourcing. The Malaysian Sustainable Palm Oil [MSPO] sets standards for responsible palm oil production, promoting practices that protect the environment and support local communities. By choosing products with MSPO certification, consumers can enjoy the benefits of palm oil while encouraging sustainable practices.
Navigating Skincare Labels
Understanding the importance of palm oil derivatives in skincare, you can still make informed choices to ensure sustainability. Here are some tips:
1. Look for MSPO Certification: This certification indicates that the product contains sustainably sourced palm oil.
2. Research the Brand’s Commitment to Sustainability: Companies that prioritize transparency often disclose their sustainability practices on their website or product packaging.
3. Choose Brands with Clear Labeling: Brands that use clear and transparent labeling make it easier to understand the origin of their ingredients. Business News This Week
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Dutch startup NoPalm Ingredients secures €5 million to scale sustainable palm oil alternative
Wageningen-based NoPalm Ingredients, a pioneering Dutch biotechnology company producing yeast oils, announced the successful closure of a €5 million seed funding round. The investment was led by Rubio Impact Ventures, and co-led by Oost NL, Fairtree Elevant Ventures, and family office Willow Capital Investments with participation from The Netherlands Enterprise Agency (RVO) and other private investors. The investment will accelerate the company’s mission to provide a local, circular, and sustainable solution for the global palm oil market.
Founded in 2021 by Lars Langhout and Professor Dr. Jeroen Hugenholtz, NoPalm Ingredients aims to address the environmental and supply chain challenges of conventional palm oil, which is found in 60% of supermarket products.
Lars Langhout, CEO & Co-founder of NoPalm Ingredients, said: “Palm oil is cheap, incredibly versatile and widely used in almost every fast-moving consumer good, from your toothpaste to my newborn’s infant formula. The problem is that global demand for palm oil grows by 4% annually, and there’s no strategy to meet the additional 22 million tons needed by 2030 without clearing rainforests 1.5 times the size of Ireland. With new regulations banning deforestation-related products, European companies can only source sustainably certified palm oil, which excludes 83% of current supplies. This will drive price increases that will affect every family in Europe. Often, the answer isn’t to prohibit a product but to step back and create a superior alternative that naturally compels a switch. This funding is pivotal for us to demonstrate large-scale production and solidify our role as a trusted partner in the food and personal care industries. We are on track for industrialization and commercialization in 2025.”
NoPalm Ingredients employs a unique fermentation process using non-GMO proprietary yeasts combined with a patented low-capex technology. This process transforms upcycled, locally-sourced agri-food sidestreams, such as potato peels and whey permeate, into yeast oils. Feedback from customers indicates that NoPalm Ingredients’ oils are an ideal drop-in replacement for palm oil, requiring no recipe reformulation and achieving price parity. This is made possible by the use of agri-food sidestreams and an asset-light technology that is quick to scale. Additionally, the technology also boasts a 90% reduction in CO2 emissions and a 99% decrease in land use compared to traditional palm oil production. NoPalm has proven their oil quality with pilot partners including industry giants Colgate-Palmolive, Unilever, and Zeelandia. EU Start Ups
Europe’s Push to Protect Rainforests Is Angering Trade Partners. Here’s Why
Economic superpowers often turn to trade as a way to achieve their foreign policy goals. So it’s no surprise that the European Union, in its determination to be a global leader in the fight against climate change, has made forest preservation a condition for doing business with the bloc. From the end of the year, the EU will enforce a ban on imports of raw materials produced on newly deforested land anywhere in the world. But the way it’s going about it has prompted a backlash from industries and other trading nations, raising the risk that the landmark initiative may be delayed. More Bloomberg
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Indonesia plans increase in palm oil-based biodiesel in 2025
JAKARTA (July 24): Indonesia, the world's biggest palm oil producer, is testing fuel with a view to increasing to 40% from 35% the share of palm-oil blended into biodiesel next year, the energy ministry said.
If implemented, the B40 mandate could increase biodiesel consumption to up to 16 million kilolitres (KL) next year, the ministry said, from 13 million KL estimated to be consumed in 2024.
"We hope the trials could be finished in December, so that full implementation of B40 could be carried out in 2025," energy ministry senior official Eniya Listiani Dewi said in a statement on Tuesday.
The Indonesian Biofuel Producers Association (APROBI) said the industry had the capacity to meet B40 demand, with installed capacity expected to rise to 20 million KL annually next year from 18 million KL now.
"However we will need more raw materials to meet B40 demand," Ernest Gunawan, the secretary general of APROBI told Reuters on Wednesday.
The biodiesel industry would need 13.9 million metric tonnes of crude palm oil to produce 16 million KL biodiesel next year, from the estimated 11 million tonnes needed this year, he added.
Indonesia's biggest palm oil association Gapki said a decline in exports meant there would be enough raw materials to supply the B40 mandate for now.
But the industry would need to assess "which one would be more valuable", Gapki chairman Eddy Martono said, referring to the possibility an increase in exports would make supplying the domestic market less viable.Indonesia's palm oil output is estimated to reach 54.4 million tonnes in 2024, a 2.26% increase from last year, while exports are expected to decline by 2.47% to 29.5 million tonnes as domestic consumption rose, driven by biodiesel mandate.
The ministry had tested the biodiesel, mixed with 40% of palm oil, on a train for the first time earlier this week, while planning to test the B40 mix on agriculture machinery, power plants and in the shipping industry, it said. The Edge Malaysia
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Jokowi orders for acceleration of coconut waste processing into bioenergy
President Joko “Jokowi” Widodo has called for the swift advancement of processing industrial coconut waste into bioenergy and biofuels while observing vast opportunities ahead for Indonesia.
Indonesia, with 3.8 million hectares of coconut plantations producing 2.8 million tons annually, is the world’s second-largest coconut producer, with North Sulawesi and Riau as the leading regions.
“The green economy presents a vast opportunity for our country,” Jokowi said at the 51st International Coconut Conference in Surabaya on Monday, July 22, 2024.
He noted that Indonesia’s coconut exports generate US$1.55 billion in revenue annually and stressed the need for research to develop high-yield coconut varieties, modern cultivation methods, and efficient harvesting techniques. The president the potential of using coconut waste for bioenergy and bioavtur production.
Previously, Jokowi approved a proposal to expand the role of the Oil Palm Plantation Fund Management Agency (BPDPKS) that will now manage funds not only from the palm oil industry but also from the cocoa and coconut industries.
The decision was made upon a limited Cabinet meeting chaired by the president at the Merdeka Palace in Jakarta on July 10, 2024. More Indonesia Business Post
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Indonesia conducts successful test on diesel trains using 40 per cent palm oil blending
JAKARTA (Agencies / Jakarta Post-ANN): Indonesia has successfully conducted its first test of diesel locomotives running on fuel containing 40 per cent palm oil, as part of the government's move to increase the use of palm-based biodiesel fuel in various types of transportation.
The programme, known as Biodiesel 40 (B40), tests the feasibility of a cleaner fuel composed of 40 per cent fatty acid methyl ester (FAME) derived from crude palm oil and 60 per cent of fossil fuel diesel. This blend aims to provide an alternative fuel source for vehicles.
Collaboratively run by the country's Energy and Mineral Resources Ministry and state-owned railway operator PT KAI, the trial on Monday used the Bogowonto train in the trip between the Lempuyangan station in Yogyakarta and the Pasar Senen station in capital Jakarta.
In a statement published on Tuesday, the ministry's director general of new and renewable energy Eniya Listiani Dewi, said the trial aimed to test the durability of the Bogowonto train's generator set for 1,200 hours.
With an estimated duration of 22 hours per round trip from Lempuyangan to Pasar Senen, Dewi estimated that the results would be achieved in approximately two months.
"We hope that all trials can be completed this December so that the use of B40 can fully be carried out in 2025," Dewi added.
Indonesia’s biodiesel uses the highest proportion of palm oil in the world, and its B40 program aims to reduce the country’s reliance on imported diesel while ramping up demand for domestically produced vegetable oils. The StarMY
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Only 74% of oil palm smallholders are MSPO-certified, Parliament told
KUALA LUMPUR (July 24): The Ministry of Plantation and Commodities said on Wednesday the percentage of private smallholders with Malaysian Sustainable Palm Oil (MSPO) certification stood at 73.88% as of June 30.
During a question-and-answer session in the Dewan Negara, Deputy Plantation and Commodities Minister Datuk Chan Foong Hin said the percentage was at an unsatisfactory level.
"We want to go to a higher level, with the overall level for all private or organised smallholders and estates to reach 85% MSPO certification," he said in reply to Senator Abdul Halim Suleiman's supplementary question about the assistance process for smallholders.
According to Chan, incentives to private smallholders are given through the Malaysian Palm Oil Board (MPOB), where the cost of auditing along with personal protective equipment and poison storage racks, good agricultural practice training, and MSPO documentation are given free of charge.
"This incentive is still implemented for smallholders to reduce their financial burden to maintain MSPO certification when it expires," he said.
Chan added that briefings and training were conducted for the palm industry to assist in compliance with MSPO standards.
"The MPOB also created a Sustainable Palm Oil Cluster to facilitate the management of smallholders in groups under the management of new officers who will provide training to smallholders on MSPO certification.
"A group training system has been designed and implemented to ensure smallholders receive continuous education on sustainable farm management methods and compliance with MSPO certification standards," Chan said. The EdgeMY
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Transparency Matters: Decoding Palm Oil Labels in Skincare
By- Dr. Geetika Mittal Gupta
Palm oil, a versatile ingredient in the skincare industry, has been under increased scrutiny due to environmental and ethical concerns. Yet, it remains a vital component in many skincare products due to its unique properties. In this article, Dr Geetika explains why palm oil derivatives are so prevalent in skincare, the benefits they offer, and how to navigate labels to ensure sustainability.
The Role of Palm Oil Derivatives in Skincare
Palm oil and its derivatives are widely used in skincare products for several reasons. Their chemical structure and versatility make them beneficial in a variety of applications. Here’s a closer look at why these derivatives are important:
1. Palm Oil: This is rich in fatty acids, primarily palmitic acid and oleic acid, which provide excellent emollient properties. These fatty acids help to moisturize and soften the skin, making palm oil a key ingredient in creams and lotions.
2. Palm Kernel Oil: Contains lauric acid, which has antibacterial and antifungal properties. This makes it useful in skincare products designed to cleanse and protect the skin from harmful microbes.
3. Palm Stearine and Palm Olein: These fractions are derived from palm oil through a process called fractionation. Palm stearine has a higher melting point, making it a good thickening agent in creams and body butters, providing stability to the product. Palm olein is more liquid, offering a smooth texture and making it ideal for lighter formulations like lotions and oils.
4. Elaeis Guineensis: As the botanical name for the oil palm tree, this encompasses all palm oil-derived products. Its primary benefits include moisturizing, conditioning, and providing a rich source of antioxidants like Vitamin E, which help protect the skin from free radical damage.
5. Glyceryl Stearate: This derivative acts as an emulsifier, helping to combine oil and water-based ingredients in skincare products. It contributes to a smooth and stable texture, preventing products from separating.
6. Cetyl Alcohol and Stearyl Alcohol: These are fatty alcohols derived from palm oil. They act as emollients, providing a creamy texture and enhancing the skin’s softness. They also help thicken and stabilize products.
7. Sodium Lauryl Sulfate: Often used as a surfactant and foaming agent, it helps create the rich lather in soaps and cleansers. It is effective in removing dirt and oil from the skin’s surface.
Addressing Environmental Concerns
While palm oil derivatives offer many benefits, their environmental impact cannot be ignored. Unsustainable palm oil production has led to deforestation, habitat loss, and greenhouse gas emissions. However, the demand for these derivatives in skincare remains high due to their functionality.
Striking a Balance: Sustainable Palm Oil
Given the widespread use of palm oil derivatives in skincare, the key is to support sustainable sourcing. The Malaysian Sustainable Palm Oil [MSPO] sets standards for responsible palm oil production, promoting practices that protect the environment and support local communities. By choosing products with MSPO certification, consumers can enjoy the benefits of palm oil while encouraging sustainable practices.
Navigating Skincare Labels
Understanding the importance of palm oil derivatives in skincare, you can still make informed choices to ensure sustainability. Here are some tips:
1. Look for MSPO Certification: This certification indicates that the product contains sustainably sourced palm oil.
2. Research the Brand’s Commitment to Sustainability: Companies that prioritize transparency often disclose their sustainability practices on their website or product packaging.
3. Choose Brands with Clear Labeling: Brands that use clear and transparent labeling make it easier to understand the origin of their ingredients. Business News This Week
--------
Dutch startup NoPalm Ingredients secures €5 million to scale sustainable palm oil alternative
Wageningen-based NoPalm Ingredients, a pioneering Dutch biotechnology company producing yeast oils, announced the successful closure of a €5 million seed funding round. The investment was led by Rubio Impact Ventures, and co-led by Oost NL, Fairtree Elevant Ventures, and family office Willow Capital Investments with participation from The Netherlands Enterprise Agency (RVO) and other private investors. The investment will accelerate the company’s mission to provide a local, circular, and sustainable solution for the global palm oil market.
Founded in 2021 by Lars Langhout and Professor Dr. Jeroen Hugenholtz, NoPalm Ingredients aims to address the environmental and supply chain challenges of conventional palm oil, which is found in 60% of supermarket products.
Lars Langhout, CEO & Co-founder of NoPalm Ingredients, said: “Palm oil is cheap, incredibly versatile and widely used in almost every fast-moving consumer good, from your toothpaste to my newborn’s infant formula. The problem is that global demand for palm oil grows by 4% annually, and there’s no strategy to meet the additional 22 million tons needed by 2030 without clearing rainforests 1.5 times the size of Ireland. With new regulations banning deforestation-related products, European companies can only source sustainably certified palm oil, which excludes 83% of current supplies. This will drive price increases that will affect every family in Europe. Often, the answer isn’t to prohibit a product but to step back and create a superior alternative that naturally compels a switch. This funding is pivotal for us to demonstrate large-scale production and solidify our role as a trusted partner in the food and personal care industries. We are on track for industrialization and commercialization in 2025.”
NoPalm Ingredients employs a unique fermentation process using non-GMO proprietary yeasts combined with a patented low-capex technology. This process transforms upcycled, locally-sourced agri-food sidestreams, such as potato peels and whey permeate, into yeast oils. Feedback from customers indicates that NoPalm Ingredients’ oils are an ideal drop-in replacement for palm oil, requiring no recipe reformulation and achieving price parity. This is made possible by the use of agri-food sidestreams and an asset-light technology that is quick to scale. Additionally, the technology also boasts a 90% reduction in CO2 emissions and a 99% decrease in land use compared to traditional palm oil production. NoPalm has proven their oil quality with pilot partners including industry giants Colgate-Palmolive, Unilever, and Zeelandia. EU Start Ups
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July 22, 2024
Compliance with local laws and international demands sets the standard for Malaysian palm oil
The environmental, social and governance (ESG) movement is gathering steam, but how much of it is real, and how much is hot air? Across industries, transparent and accountable ESG reporting is crucial to ensure that companies are on the right track to improve their environmental and social performance, strengthen governance and earn the trust of stakeholders. However, the lack of standardisation and challenges in quantifying impact have made the evaluation of ESG performance a difficult task.
Norges Bank Investment Management, which manages Norway’s US$1.6 trillion sovereign wealth fund, notes: “[ESG rating] providers use a variety of data sources including companies’ own sustainability reporting and third-party data, but often estimate data points or use industry averages when data is unavailable. Reliability of data inputs can also be an issue, given the infrequent assurance of sustainability reporting.”
In response to these challenges and to shed palm oil’s bad boy image, the Malaysian government took a proactive stance. With input from the industry’s stakeholders, the government developed a deforestation-free sustainability benchmark — the Malaysian Sustainable Palm Oil (MSPO) certification scheme.
Launched in 2015 and made mandatory on Jan 1, 2020, this certification holds industry players accountable for their environmental footprint, labour practices and impact on local communities, ultimately strengthening trust and credibility with key stakeholders, including investors, consumers and regulators. MSPO certification is not a one-off achievement. Subject to four surveillance audits, the certificate is valid for only five years and entities seeking continued recognition of their sustainability efforts must undergo recertification.
MSPO standards are reviewed every five years. In 2022, the standards were revised with improved sustainability requirements in line with the United Nations’ Sustainable Development Goals. It incorporates requirements for Supply Chain Certification Standard (SCCS), Social Impact Assessment (SIA), High Conservation Value (HCV) and Greenhouse Gas (GHG) calculations, among others. It also demands ethical conduct and anti-bribery practices. Should oil palm planters and millers fail to comply with the scheme, they will be penalised or have their licence suspended or revoked.
Assessment of the MSPO standards by experts such as palm oil and rubber certification expert Pierre Bois d’Enghien highlight the robust requirements, along with mandatory reporting and auditing procedures. The MSPO sets a higher bar for labour practices than the European Union Deforestation Regulation (EUDR). Additionally, it prohibits deforestation starting in 2019, a year ahead of the EU’s cut-off date. During a recent webinar organised by the Malaysian Palm Oil Council (MPOC), d’Enghien commended the scheme, saying: “The MSPO is by any standards a world-class standard for agriculture.” More The Edge Malaysia
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Indonesian palm oil experts express concern over Ministry push to increase domestic supply of biodiesel
The Ministry of Agriculture has prepared a biofuel industry to increase the domestic supply of biodiesel, as an initiative to increase the availability of biofuel to 50 percent from the total consumption of solar fuel, which aligns with President-elect Prabowo Subianto’s program in mixing biodiesel and solar.
“Now, the companies are ready. We are preparing the companies from now as according to the instructions from Mr President and President-elect to achieve B50,” Minister of Agriculture, Andi Amran Sulaiman, said on July 19, 2024.
“The preparation has begun from now, involving companies that will play an important role to achieve the B50 target,” Amran said.
However, the location of the industrial area that is being prepared to support the program has yet to be explained by the ministry.
Amran said the B50 program is aimed at reducing the dependencies on solar fuel import and to replace it with biofuel from crude palm oil (CPO).
The domestic biofuel production in Indonesia reached 46 million tons per year, and about 26 million tons are exported to the global market. However, Indonesia still imports about 5.3 million tons of solar each year.
“We produce 46 million tons of biofuel right now and export 26 million tons. If we convert it again, because we import 5.3 million tons of solar, what does it mean? Then if the world CPO price increases, in the end the Indonesian palm oil farmers will enjoy it,” Amran said.
Amran expressed hope that the implementation of the B50 program will not only decrease the dependencies on solar imports, but also increase the CPO price in the global market.
He considered this as a good step for the local palm oil farmers, citing that Indonesia is one of the biggest producers in CPO in the world with a market share reaching 58-60 percent.
The agriculture ministry also highlights the potential for Indonesia to be the world’s largest main provider of CPO globally. According to the ministry, this would not create significant problems, as Indonesia’s supply of CPO is secure.
However, a number of observers evaluate the sustainability of the biodiesel program as a biofuel proposed by the government needs problem handling in the palm oil upstream sector.
Rapolo Hutabarat, Head of Sustainability Division at the Biofuel Producer Association of Indonesia (APROBI) expresses the problem handling in the palm oil upstream sector is the key to a sustainable biodiesel program because it concerns the availability of raw materials.
“This problem needs to be solved, especially from the upstream. We know that there is a lot of work that needs to be done upstream, because this determines the availability of the materials,” he said.
Rapolo said further that the continuation of blending biofuel programs such as B40 and the probability of further improvements to B45 and B50 is very important as the success of the programs also depends on the availability of raw materials in the upstream sector.
APROBI also hopes the government would solve the problem in the upstream sector in order for Indonesia to achieve its big dream in the palm oil sector, including the CPO production target amounting to 100 million tons in 2045.
Rino Afrino, General Secretary at the Central Executive Board of the Indonesian Oil Palm Farmers Association (APKASINDO) adds the need to increase productivity through steps in the upstream sector. Indonesia Business Post
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More support needed for Indonesian women smallholders of palm oil
Nurhidayah, 42, is a smallholder farmer and single mother of two. She faces the harsh realities of climate change daily. Her two-hectare farm in East Lombok relies solely on rainwater for sustenance. Prolonged drought can be devastating.
Where she once planted corn and legumes from December to March, shifting weather patterns now limit her farming to just four months a year.
With a daily income of IDR25,000 to IDR50,000 (US$2-4) from side jobs and selling snacks, Nurhidayah turns to making crackers during the off-season. However, sudden rains can ruin her products, cutting into her already precarious income.
Climate change is reshaping the world, and few feel its effects more than women farmers.
Unpredictable weather, prolonged dry seasons, and rising temperatures have created new challenges in agriculture, a sector deeply dependent on stable climate conditions.
In Pringgabaya, East Lombok, women farmers are on the front lines of these changes. This densely populated, impoverished area of Nusa Tenggara province is home to women who struggle daily with limited access to land, finances, healthcare and training.
‘No day without debt’
To make ends meet, Nurhidayah relies on loans from local institutions like Bank Mekar and Bank Rontok. Bank Mekar, which supports underprivileged women entrepreneurs, offers loans with high interest, demanding weekly repayment. Bank Rontok, known for its quick cash loans, charges steep rates and uses collateral as leverage.
These loans, while providing temporary relief, often trap women like Nurhidayah in a cycle of debt. As the primary breadwinner, she must also care for her children and support her parents. In Pringgabaya, poverty is so pervasive that debt has become a part of daily life, with neighbours joking, “There’s no day without debt.”
Climate change exacerbates existing inequalities and for women in agriculture, the stakes are exceptionally high.
Female farmers already face barriers related to land ownership and access to resources. The additional pressure from climate-induced shifts in weather patterns only intensifies these challenges.
In regions like East Lombok, where agriculture is heavily reliant on predictable weather, the disruption of traditional planting and harvesting cycles can devastate livelihoods.
Prolonged droughts and erratic rainfall not only affect crop yields but also make water a scarce and precious resource, further complicating farming efforts.
The financial challenges faced by women like Nurhidayah are many and varied.
High-interest loans from institutions like Bank Mekar and Bank Rontok, while seemingly a lifeline, often lead to long-term financial distress. These loans are not tailored to the unique circumstances of smallholder farmers, who face fluctuating incomes and seasonal employment.
Traditional financial systems often exclude women, making it difficult for them to access fair credit. This exclusion is compounded by a lack of financial literacy and awareness, leaving many women vulnerable to exploitative lending practices.
The role of community and government
Empowering women farmers requires a comprehensive approach that includes community support and policy intervention. More Eco Business
Compliance with local laws and international demands sets the standard for Malaysian palm oil
The environmental, social and governance (ESG) movement is gathering steam, but how much of it is real, and how much is hot air? Across industries, transparent and accountable ESG reporting is crucial to ensure that companies are on the right track to improve their environmental and social performance, strengthen governance and earn the trust of stakeholders. However, the lack of standardisation and challenges in quantifying impact have made the evaluation of ESG performance a difficult task.
Norges Bank Investment Management, which manages Norway’s US$1.6 trillion sovereign wealth fund, notes: “[ESG rating] providers use a variety of data sources including companies’ own sustainability reporting and third-party data, but often estimate data points or use industry averages when data is unavailable. Reliability of data inputs can also be an issue, given the infrequent assurance of sustainability reporting.”
In response to these challenges and to shed palm oil’s bad boy image, the Malaysian government took a proactive stance. With input from the industry’s stakeholders, the government developed a deforestation-free sustainability benchmark — the Malaysian Sustainable Palm Oil (MSPO) certification scheme.
Launched in 2015 and made mandatory on Jan 1, 2020, this certification holds industry players accountable for their environmental footprint, labour practices and impact on local communities, ultimately strengthening trust and credibility with key stakeholders, including investors, consumers and regulators. MSPO certification is not a one-off achievement. Subject to four surveillance audits, the certificate is valid for only five years and entities seeking continued recognition of their sustainability efforts must undergo recertification.
MSPO standards are reviewed every five years. In 2022, the standards were revised with improved sustainability requirements in line with the United Nations’ Sustainable Development Goals. It incorporates requirements for Supply Chain Certification Standard (SCCS), Social Impact Assessment (SIA), High Conservation Value (HCV) and Greenhouse Gas (GHG) calculations, among others. It also demands ethical conduct and anti-bribery practices. Should oil palm planters and millers fail to comply with the scheme, they will be penalised or have their licence suspended or revoked.
Assessment of the MSPO standards by experts such as palm oil and rubber certification expert Pierre Bois d’Enghien highlight the robust requirements, along with mandatory reporting and auditing procedures. The MSPO sets a higher bar for labour practices than the European Union Deforestation Regulation (EUDR). Additionally, it prohibits deforestation starting in 2019, a year ahead of the EU’s cut-off date. During a recent webinar organised by the Malaysian Palm Oil Council (MPOC), d’Enghien commended the scheme, saying: “The MSPO is by any standards a world-class standard for agriculture.” More The Edge Malaysia
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Indonesian palm oil experts express concern over Ministry push to increase domestic supply of biodiesel
The Ministry of Agriculture has prepared a biofuel industry to increase the domestic supply of biodiesel, as an initiative to increase the availability of biofuel to 50 percent from the total consumption of solar fuel, which aligns with President-elect Prabowo Subianto’s program in mixing biodiesel and solar.
“Now, the companies are ready. We are preparing the companies from now as according to the instructions from Mr President and President-elect to achieve B50,” Minister of Agriculture, Andi Amran Sulaiman, said on July 19, 2024.
“The preparation has begun from now, involving companies that will play an important role to achieve the B50 target,” Amran said.
However, the location of the industrial area that is being prepared to support the program has yet to be explained by the ministry.
Amran said the B50 program is aimed at reducing the dependencies on solar fuel import and to replace it with biofuel from crude palm oil (CPO).
The domestic biofuel production in Indonesia reached 46 million tons per year, and about 26 million tons are exported to the global market. However, Indonesia still imports about 5.3 million tons of solar each year.
“We produce 46 million tons of biofuel right now and export 26 million tons. If we convert it again, because we import 5.3 million tons of solar, what does it mean? Then if the world CPO price increases, in the end the Indonesian palm oil farmers will enjoy it,” Amran said.
Amran expressed hope that the implementation of the B50 program will not only decrease the dependencies on solar imports, but also increase the CPO price in the global market.
He considered this as a good step for the local palm oil farmers, citing that Indonesia is one of the biggest producers in CPO in the world with a market share reaching 58-60 percent.
The agriculture ministry also highlights the potential for Indonesia to be the world’s largest main provider of CPO globally. According to the ministry, this would not create significant problems, as Indonesia’s supply of CPO is secure.
However, a number of observers evaluate the sustainability of the biodiesel program as a biofuel proposed by the government needs problem handling in the palm oil upstream sector.
Rapolo Hutabarat, Head of Sustainability Division at the Biofuel Producer Association of Indonesia (APROBI) expresses the problem handling in the palm oil upstream sector is the key to a sustainable biodiesel program because it concerns the availability of raw materials.
“This problem needs to be solved, especially from the upstream. We know that there is a lot of work that needs to be done upstream, because this determines the availability of the materials,” he said.
Rapolo said further that the continuation of blending biofuel programs such as B40 and the probability of further improvements to B45 and B50 is very important as the success of the programs also depends on the availability of raw materials in the upstream sector.
APROBI also hopes the government would solve the problem in the upstream sector in order for Indonesia to achieve its big dream in the palm oil sector, including the CPO production target amounting to 100 million tons in 2045.
Rino Afrino, General Secretary at the Central Executive Board of the Indonesian Oil Palm Farmers Association (APKASINDO) adds the need to increase productivity through steps in the upstream sector. Indonesia Business Post
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More support needed for Indonesian women smallholders of palm oil
Nurhidayah, 42, is a smallholder farmer and single mother of two. She faces the harsh realities of climate change daily. Her two-hectare farm in East Lombok relies solely on rainwater for sustenance. Prolonged drought can be devastating.
Where she once planted corn and legumes from December to March, shifting weather patterns now limit her farming to just four months a year.
With a daily income of IDR25,000 to IDR50,000 (US$2-4) from side jobs and selling snacks, Nurhidayah turns to making crackers during the off-season. However, sudden rains can ruin her products, cutting into her already precarious income.
Climate change is reshaping the world, and few feel its effects more than women farmers.
Unpredictable weather, prolonged dry seasons, and rising temperatures have created new challenges in agriculture, a sector deeply dependent on stable climate conditions.
In Pringgabaya, East Lombok, women farmers are on the front lines of these changes. This densely populated, impoverished area of Nusa Tenggara province is home to women who struggle daily with limited access to land, finances, healthcare and training.
‘No day without debt’
To make ends meet, Nurhidayah relies on loans from local institutions like Bank Mekar and Bank Rontok. Bank Mekar, which supports underprivileged women entrepreneurs, offers loans with high interest, demanding weekly repayment. Bank Rontok, known for its quick cash loans, charges steep rates and uses collateral as leverage.
These loans, while providing temporary relief, often trap women like Nurhidayah in a cycle of debt. As the primary breadwinner, she must also care for her children and support her parents. In Pringgabaya, poverty is so pervasive that debt has become a part of daily life, with neighbours joking, “There’s no day without debt.”
Climate change exacerbates existing inequalities and for women in agriculture, the stakes are exceptionally high.
Female farmers already face barriers related to land ownership and access to resources. The additional pressure from climate-induced shifts in weather patterns only intensifies these challenges.
In regions like East Lombok, where agriculture is heavily reliant on predictable weather, the disruption of traditional planting and harvesting cycles can devastate livelihoods.
Prolonged droughts and erratic rainfall not only affect crop yields but also make water a scarce and precious resource, further complicating farming efforts.
The financial challenges faced by women like Nurhidayah are many and varied.
High-interest loans from institutions like Bank Mekar and Bank Rontok, while seemingly a lifeline, often lead to long-term financial distress. These loans are not tailored to the unique circumstances of smallholder farmers, who face fluctuating incomes and seasonal employment.
Traditional financial systems often exclude women, making it difficult for them to access fair credit. This exclusion is compounded by a lack of financial literacy and awareness, leaving many women vulnerable to exploitative lending practices.
The role of community and government
Empowering women farmers requires a comprehensive approach that includes community support and policy intervention. More Eco Business
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July 21, 2024
International experts propose viable oil palm standards for Sri Lanka
Sri Lanka is on its way to lifting the oil palm ban and Indian experts are helping to make oil palm cultivation sustainable.
Dr. Suresh Motwani, Asia Veg Oil Programme Head, Solidaridad, an international civil society organisation noted that in 2017, the Solvent Extractor Association and Solidaridad with the support of the Indian Institute of Oil Palm Research and many industry stakeholders developed India’s own standards for sustainable oil palm called Indian palm oil sustainability framework (IPOS). “Implementing IPOS addresses sustainability risks and related issues. Last month, we proposed a sustainable palm oil framework such as the IPOS for Sri Lanka called SRI POS, to be developed by the Ministry of Agriculture,” He told the Sunday Times Business on the sidelines of a workshop on, “Sustainable Futures’ – achieving food and nutrition security and economy growth through vegetable oils on Thursday.
By ensuring social and economic development in producing countries, the vegetable oil supply chain contributes significantly to sustainable development goals, he said. “Vegetable oil crops ensure improved economic conditions through livelihoods to maintain millions of smallholders, reducing poverty rates, increasing quality of life, education and improving access to food and health systems.” Dr. Motwani noted that India is currently a net importer of edible oil, with 60 per cent of the total edible oil being imported from various countries. About 50 to 60 per cent share of these imports are palm oil. “The insufficiency in edible oil in the country negatively impacts our foreign exchange by US $ 20.56 billion.”
Displaying Indian statistics, he said that each year 20 million are added to India’s population. “So, India requires about 30 million tonnes of vegetable oil in five years. India too depends on imports and 65 per cent of its edible oil usage is important.” Sunday TimesLK
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Smallholders in Sabah urged to increase oil palm replanting rate
KOTA KINABALU (July 21): Deputy Minister of Plantation and Commodities, Datuk Chan Foong Hin has called on the oil palm industry players in Sabah, especially smallholders, to increase the replanting rate for aging oil palm areas to maintain the state’s palm oil productivity.
He stated that the average palm oil yield in Sabah until April 2024 had decreased by 4% compared to the same period in 2023.
“The performance of fresh fruit bunches (FFB) yield in Sabah from January to April 2024 was recorded at 4.79 tonnes per hectare, a decline of 4.0% compared to 4.99 tonnes per hectare for the same period in 2023.
“Meanwhile, for the period from January to April 2024, the FFB yield in Peninsular Malaysia was 5.18 tonnes per hectare, an increase of 19.4% compared to the same period in 2023, which was 4.34 tonnes per hectare. In Sarawak, the FFB yield increased by 8.7% from 3.80 tonnes per hectare to 4.13 tonnes per hectare,” he said in a statement on Sunday.
According to Chan, the main factor for the decline in FFB yield in Sabah was the reduction in the area of fully mature oil palm trees, which are between nine to 18 years old, with an estimated FFB productivity of around 20 to 24 tonnes per hectare per year.
“Based on statistics from the Malaysian Palm Oil Board (MPOB) in December 2023, the percentage of fully mature oil palm trees in Sabah was estimated at 33.5% compared to 33.7% in the previous year. More The Borneo Post
International experts propose viable oil palm standards for Sri Lanka
Sri Lanka is on its way to lifting the oil palm ban and Indian experts are helping to make oil palm cultivation sustainable.
Dr. Suresh Motwani, Asia Veg Oil Programme Head, Solidaridad, an international civil society organisation noted that in 2017, the Solvent Extractor Association and Solidaridad with the support of the Indian Institute of Oil Palm Research and many industry stakeholders developed India’s own standards for sustainable oil palm called Indian palm oil sustainability framework (IPOS). “Implementing IPOS addresses sustainability risks and related issues. Last month, we proposed a sustainable palm oil framework such as the IPOS for Sri Lanka called SRI POS, to be developed by the Ministry of Agriculture,” He told the Sunday Times Business on the sidelines of a workshop on, “Sustainable Futures’ – achieving food and nutrition security and economy growth through vegetable oils on Thursday.
By ensuring social and economic development in producing countries, the vegetable oil supply chain contributes significantly to sustainable development goals, he said. “Vegetable oil crops ensure improved economic conditions through livelihoods to maintain millions of smallholders, reducing poverty rates, increasing quality of life, education and improving access to food and health systems.” Dr. Motwani noted that India is currently a net importer of edible oil, with 60 per cent of the total edible oil being imported from various countries. About 50 to 60 per cent share of these imports are palm oil. “The insufficiency in edible oil in the country negatively impacts our foreign exchange by US $ 20.56 billion.”
Displaying Indian statistics, he said that each year 20 million are added to India’s population. “So, India requires about 30 million tonnes of vegetable oil in five years. India too depends on imports and 65 per cent of its edible oil usage is important.” Sunday TimesLK
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Smallholders in Sabah urged to increase oil palm replanting rate
KOTA KINABALU (July 21): Deputy Minister of Plantation and Commodities, Datuk Chan Foong Hin has called on the oil palm industry players in Sabah, especially smallholders, to increase the replanting rate for aging oil palm areas to maintain the state’s palm oil productivity.
He stated that the average palm oil yield in Sabah until April 2024 had decreased by 4% compared to the same period in 2023.
“The performance of fresh fruit bunches (FFB) yield in Sabah from January to April 2024 was recorded at 4.79 tonnes per hectare, a decline of 4.0% compared to 4.99 tonnes per hectare for the same period in 2023.
“Meanwhile, for the period from January to April 2024, the FFB yield in Peninsular Malaysia was 5.18 tonnes per hectare, an increase of 19.4% compared to the same period in 2023, which was 4.34 tonnes per hectare. In Sarawak, the FFB yield increased by 8.7% from 3.80 tonnes per hectare to 4.13 tonnes per hectare,” he said in a statement on Sunday.
According to Chan, the main factor for the decline in FFB yield in Sabah was the reduction in the area of fully mature oil palm trees, which are between nine to 18 years old, with an estimated FFB productivity of around 20 to 24 tonnes per hectare per year.
“Based on statistics from the Malaysian Palm Oil Board (MPOB) in December 2023, the percentage of fully mature oil palm trees in Sabah was estimated at 33.5% compared to 33.7% in the previous year. More The Borneo Post
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July 20, 2024
BETTER REPLANTING RATE CAN RAISE MALAYSIAN ANNUAL PALM OIL OUTPUT BY 2.5 MILLION TONNES, SAYS JOHARI
NEW DELHI, July 19 (Bernama) -- A better replanting rate of older oil palm areas can increase Malaysia's annual palm oil output by 2.5 million tonnes, Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said.
Johari has raised concern about the low rate of replanting by independent smallholders, who number about 450,000 and have 1.5 million hectares under cultivation.
“Our replanting has dropped significantly. Based on industry standards, we should replant 4-5 per cent, but our national average is only about 1.8 per cent," the minister said at a press conference in New Delhi on Thursday.
As Malaysia follows sustainable palm oil standards, it will not open up new areas for plantations and will instead focus on higher yield on the current harvested area of 5.7 million hectares, Johari said.
Malaysia’s forest cover, which is 54 per cent at present, cannot drop below 50 per cent as part of the country’s climate commitments. More Bernama
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Malaysia gets India’s backing in fight against anti-palm oil campaign
FMT Reporters
19 Jul 2024, 12:31 PM
Plantation and commodities minister Johari Ghani says palm oil is the most productive edible oil, generating high yields at a low cost.
PETALING JAYA: Malaysia has secured the backing of India, the world’s largest palm oil importer, in combating the anti-palm oil campaign propagated by Western nations.
At a roundtable in New Delhi yesterday attended by plantation and commodities minister Johari Ghani, the Indian Vegetable Oil Producers Association (IVPA) voiced unequivocal support for Malaysia’s stand.
Johari was on a two-day trip to the Indian capital city from July 17 to 18.
IVPA president Sudhakar Desai said the ongoing anti-palm oil campaign poses a threat to the commodity, an essential good for the 1.4 billion consumers in India. FMT
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EU hits Chinese biodiesel with anti-dumping measures
July 19, 2024
EU to impose tariffs on Chinese biodiesel, but this will not stop palm oil fraud, warns T&E
The European Commission announced today that it will impose anti-dumping tariffs of up to 36.4% on biodiesel imports from China. This is a step in the right direction for limiting imports of dubious used cooking oil (UCO) biofuels, says T&E. But tariffs alone will not be enough to prevent fraudulently mislabeled palm oil from entering the European market, says the group.
Over the past two years, the European biofuels market has been flooded with UCO imports from China, causing a collapse in the market price from around €2,250 per tonne to €1,100. A recent study by T&E showed that collection in China is as much as 30% cheaper than in Europe. Inherent problems with verification and certification mean that much of the UCO entering Europe may also be fraudulently labelled palm oil, a cheap feedstock heavily linked with deforestation. Transport & Environment
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Malaysia commits to supplying China with sustainability-certified palm oil
Malaysia is committed to supplying China with Malaysian Sustainable Palm Oil (MSPO) certified palm oil and palm oil products.
Datuk Chan Foong Hin, Deputy Minister of Plantation and Commodities, said that Malaysia seeks to cooperate with China in establishing a shared consensus during engagements with the European Union, particularly regarding the European Union Deforestation Regulation (EUDR).
This collaboration aims to ensure a unified stance and understanding in discussions about the EUDR's implementation and impact.
Malaysia looks forward to cooperating with China's Ministry of Ecology and Environment (MEE) in promoting sustainable development, environmental protection, and addressing climate change through the promotion of the MSPO Certification Scheme in the Chinese market, said Chan. These issues were raised by YB Datuk Chan Foong Hin during a G2G bilateral meeting with Zhao Yingmin, vice minister of ecology and environment of China, in Beijing last Friday, which received a positive response from the latter.
YB Datuk Chan Foong Hin added that Malaysia is actively addressing the four challenges presented by the EUDR namely Traceability System, Legal Land Title, Deforestation-Free, and No Forced Labour through the MSPO certification scheme which has been mandatory since January 1, 2020. Biofuels News
BETTER REPLANTING RATE CAN RAISE MALAYSIAN ANNUAL PALM OIL OUTPUT BY 2.5 MILLION TONNES, SAYS JOHARI
NEW DELHI, July 19 (Bernama) -- A better replanting rate of older oil palm areas can increase Malaysia's annual palm oil output by 2.5 million tonnes, Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said.
Johari has raised concern about the low rate of replanting by independent smallholders, who number about 450,000 and have 1.5 million hectares under cultivation.
“Our replanting has dropped significantly. Based on industry standards, we should replant 4-5 per cent, but our national average is only about 1.8 per cent," the minister said at a press conference in New Delhi on Thursday.
As Malaysia follows sustainable palm oil standards, it will not open up new areas for plantations and will instead focus on higher yield on the current harvested area of 5.7 million hectares, Johari said.
Malaysia’s forest cover, which is 54 per cent at present, cannot drop below 50 per cent as part of the country’s climate commitments. More Bernama
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Malaysia gets India’s backing in fight against anti-palm oil campaign
FMT Reporters
19 Jul 2024, 12:31 PM
Plantation and commodities minister Johari Ghani says palm oil is the most productive edible oil, generating high yields at a low cost.
PETALING JAYA: Malaysia has secured the backing of India, the world’s largest palm oil importer, in combating the anti-palm oil campaign propagated by Western nations.
At a roundtable in New Delhi yesterday attended by plantation and commodities minister Johari Ghani, the Indian Vegetable Oil Producers Association (IVPA) voiced unequivocal support for Malaysia’s stand.
Johari was on a two-day trip to the Indian capital city from July 17 to 18.
IVPA president Sudhakar Desai said the ongoing anti-palm oil campaign poses a threat to the commodity, an essential good for the 1.4 billion consumers in India. FMT
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EU hits Chinese biodiesel with anti-dumping measures
July 19, 2024
EU to impose tariffs on Chinese biodiesel, but this will not stop palm oil fraud, warns T&E
The European Commission announced today that it will impose anti-dumping tariffs of up to 36.4% on biodiesel imports from China. This is a step in the right direction for limiting imports of dubious used cooking oil (UCO) biofuels, says T&E. But tariffs alone will not be enough to prevent fraudulently mislabeled palm oil from entering the European market, says the group.
Over the past two years, the European biofuels market has been flooded with UCO imports from China, causing a collapse in the market price from around €2,250 per tonne to €1,100. A recent study by T&E showed that collection in China is as much as 30% cheaper than in Europe. Inherent problems with verification and certification mean that much of the UCO entering Europe may also be fraudulently labelled palm oil, a cheap feedstock heavily linked with deforestation. Transport & Environment
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Malaysia commits to supplying China with sustainability-certified palm oil
Malaysia is committed to supplying China with Malaysian Sustainable Palm Oil (MSPO) certified palm oil and palm oil products.
Datuk Chan Foong Hin, Deputy Minister of Plantation and Commodities, said that Malaysia seeks to cooperate with China in establishing a shared consensus during engagements with the European Union, particularly regarding the European Union Deforestation Regulation (EUDR).
This collaboration aims to ensure a unified stance and understanding in discussions about the EUDR's implementation and impact.
Malaysia looks forward to cooperating with China's Ministry of Ecology and Environment (MEE) in promoting sustainable development, environmental protection, and addressing climate change through the promotion of the MSPO Certification Scheme in the Chinese market, said Chan. These issues were raised by YB Datuk Chan Foong Hin during a G2G bilateral meeting with Zhao Yingmin, vice minister of ecology and environment of China, in Beijing last Friday, which received a positive response from the latter.
YB Datuk Chan Foong Hin added that Malaysia is actively addressing the four challenges presented by the EUDR namely Traceability System, Legal Land Title, Deforestation-Free, and No Forced Labour through the MSPO certification scheme which has been mandatory since January 1, 2020. Biofuels News
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July 19, 2024
EU’s anti-deforestation law a ‘barrier to trade’: lobby groups
The demanding traceability requirements of the European Union’s anti-deforestation law that will take effect from Dec. 31 could present a barrier to trade and should be postponed and revised, according to US exporters of forestry products and palm oil producers in Asia.
Their voices have been added to growing concerns over the difficulties surrounding compliance with the EU Deforestation Regulation (EUDR), a law that is part of broader efforts by the EU to incentivize more responsible production methods across supply chains and align with global initiatives to preserve ecosystems and biodiversity.
While producers of commodities linked to deforestation support the...More JOC
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Indonesia inspired US bipartisanship in rejecting EUDR: Minister
Jakarta (ANTARA) - Indonesia inspired bipartisan groups in the US and other countries, members of the Like-Minded Countries (LMC), to reject the Regulation on Deforestation Free Products (EUDR), according to Coordinating Minister for Economic Affairs Airlangga Hartarto.
The European Union (EU) will begin implementing the EUDR at the end of December 2024.
"The EUDR Joint Task Force, initiated by Indonesia during a joint visit between the coordinating minister for the economy and the Malaysian PM last year, received support from the LMC. Some time ago, both Republicans and Democrats in the US also questioned EUDR. Thus, LMC was inspired by Indonesia and Malaysia," Hartarto noted in a statement from his office on Thursday.
Ahead of the implementation of these regulations, Indonesia continues to actively convey several countries' concerns regarding the EUDR to relevant parties in the EU, he said.
Hartarto remarked that this included encouraging the LMC to issue two joint letters to the highest EU leadership in response to the EUDR, dated July 27, 2022 and September 7, 2023.
The US is among the ranks of countries that have criticized the EUDR.
On May 30 this year, the US Government sent a letter to EVP Maros Sefcovic, signed by US Secretary of Agriculture Thomas Vilsack, US Secretary of Commerce Gina Raimondo, and US Trade Representative Katherine Tai.
The US Government emphasized that implementing the EUDR at the end of this year will have a negative economic impact on producers and consumers in the US and the EU.
Hence, the US urges the European Commission to postpone the implementation of EUDR. More Antara News
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Malaysia to increase cooperation in palm oil and other sectors
India and Malaysia have decided to increase cooperation between the two countries in the field of palm oil and other sectors, after agriculture minister Shivraj Singh Chouhan met with Datuk Seri Johari Abdul Ghani, Minister of Plantations and Commodities of Malaysia on Thursday.
Read more at:
https://economictimes.indiatimes.com/news/economy/agriculture/malaysia-to-increase-cooperation-in-oil-palm-and-other-sectors/articleshow/111840263.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
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Malaysia seeks sugar and rice from India, prefers a pact
Updated - July 18, 2024 at 09:35 PM. | New Delhi
Plantation and Commodities Minister says Kuala Lumpur is confident of continuing palm oil exports to India, supports New Delhi’s Oil Palm Mission
Malaysia, which sells nearly one-fourth of its total palm oil exports to India alone, is confident that the demand in the south Asian country will continue to be robust and both the countries can benefit from a friendly trade relations ensuring food security for the people.
Visiting Malaysian Plantation and Commodities Minister Seri Johari Abdul Ghani said on Thursday that his country would like to have an understanding with India to ensure import of commodities such as rice and sugar and at the same time export palm oil and such an arrangement should continue even if there are restrictions.
Though he wished there should be an agreement, Johari felt that without that also it can happen as happening now in case of rice. Malaysia has been importing non-Basmati rice from India through diplomatic channels. But Johari made it clear that Malaysia does not favour “any barter” system and said it should be based on open market prices. Farmers will be dissatisfied if they do not get market rates in case there is a surge, he said.
Support to Atmanirbhar
Out of Malaysia’s 14.8 million tonnes (mt) of palm oil exports in 2023 (January-December), about 3.7 mt was bought by India. Malaysia expects a marginal increase of palm oil export to 15 mt in 2024 and same level of shipments to India as it had last year.
Earlier in the day, Johari met India’s Agriculture Minister Shivraj Singh Chouhan and offered Malaysia’s support to India’s efforts to become “Atmanirbhar” in its edible oil security goals. India has already launched the Oil Palm Mission and will soon announce the Oilseeds Mission to attain self-sufficiency.
“Malaysia stands ready to provide invaluable support, encouraging the growth of oil palm cultivation. India’s importance to Malaysia’s oil palm sector cannot be understated. This partnership will also meaningfully contribute towards achieving global food security needs and sustainability goals,” Johari said in a statement. The Hindu Businessline
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Southeast Asia to play significant role in SAF production but lacks policies, cooperation: Boeing
Results from Southeast Asia feedstock study due for release end-Aug
Growing number of SAF policies in region 'encouraging'
Boeing making progress on its green goals despite turbulent year
Southeast Asia is expected to play the most significant role in sustainable aviation fuel production globally, but the region currently lacks policies and cooperation to tap this potential, Boeing's APAC Regional Sustainability Director Robert Boyd told S&P Global Commodity Insights.
"Southeast Asia, particularly, is getting a clearer understanding of just how much potential there is and once you start to understand that well, then you go to the next steps, so really having serious discussions with policymakers to get the full supply chain together," Boyd said in an interview on the sidelines of the MyAero Sustainable Aviation Symposium in Kuala Lumpur earlier in the week started July 14.
Boeing is working on a study with the Roundtable on Sustainable Biomaterials on sustainable feedstock production in Southeast Asia, with results expected to be ready by end-August, he added.
The region is home to several major biofuel feedstock-producing countries such as Malaysia, Indonesia and Thailand. For instance, Malaysia is the world's second-largest vegetable oil supplier after Indonesia, while the country's palm oil annual output of around 19 million mt makes it the world's third-largest vegetable oil producer.
"HEFA's very familiar here. So, the hydroprocessed esters and fatty acids and the fat oils and greases, we know that there's a substantial amount of that. Particularly in Southeast Asia, Malaysia included, has great potential on the HEFA fuels," Boyd said at the conference.
The HEFA process is an established production pathway for SAF, which involves refining vegetable oils, animal fats or used cooking oils using hydrogen. It is approved for use as an aviation fuel under ASTM standards with a maximum blend ratio of 50%.
Despite the abundance of palm oil and its derivatives in Southeast Asia, the wider market remains apprehensive on palm-linked SAF due to concerns over unsustainable practices in its production process, even though such SAF can be accepted under CORSIA guidelines.
"Any producer, whatever your feedstock is, what you need to do is use the sustainability organizations to come and demonstrate that the feedstock you have complies with what's going to be expected by airlines," said Boyd.
Policy push
Although Asia lacks a regional mandate or incentive program to drive SAF adoption, like in Europe and the US, the growing number of countries adopting SAF policies in the region have been encouraging, said Boyd.
Singapore had introduced its SAF mandate earlier this year and the city-state aims to uplift 1% SAF in 2026, with plans to raise this to 3%-5% by 2030. Singapore's Civil Aviation Authority will centrally procure the SAF used for the mandate, which will be funded from levies collected from air travelers.
"Just by doing that, it has stimulated more discussion and we would certainly encourage all of the countries in this area to be having these active discussions together, because if they can think about the policy solutions collectively, you will get a better result than if each one goes off and does their own thing," he added.
Others like Malaysia has established a SAF blending mandate at 1%, with plans to hit 47% by 2050, according to its National Energy Transition Roadmap, while Indonesia is expected unveil its SAF roadmap and action plan later this year.
Boeing's green ambitions
Amid a turbulent year so far with production delays, regulatory scrutiny and investigations, as well as inferior performance on the stock market, Boyd said Boeing still remains committed to its sustainability roadmap.
"They're not connected ... For the green goals, we're making great progress this year."
The company had agreed to buy over 220,000 barrels (9.4 million gallons) of blended SAF this year, which marked its largest annual purchase of the greener aviation fuel. The purchased volume also makes up about 20% of Boeing's fuel use for the year, said Boyd.
The company is committed to deliver commercial planes that can run on pure SAF by 2030, he added.
For now, only 50% SAF blends are allowed as aromatics in conventional jet fuel allow seals to swell in engines at higher altitudes, which prevent fuel leaks.
The International Air Transport Association expects around 27% of all potential renewable fuel production capacity available in 2030 to be SAF for the global aviation sector to achieve a 5% emissions reduction by the same year. IATA estimates that SAF could contribute around 65% in emissions reduction required by the global aviation sector to meet its 2050 net-zero target.
SP Global
EU’s anti-deforestation law a ‘barrier to trade’: lobby groups
The demanding traceability requirements of the European Union’s anti-deforestation law that will take effect from Dec. 31 could present a barrier to trade and should be postponed and revised, according to US exporters of forestry products and palm oil producers in Asia.
Their voices have been added to growing concerns over the difficulties surrounding compliance with the EU Deforestation Regulation (EUDR), a law that is part of broader efforts by the EU to incentivize more responsible production methods across supply chains and align with global initiatives to preserve ecosystems and biodiversity.
While producers of commodities linked to deforestation support the...More JOC
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Indonesia inspired US bipartisanship in rejecting EUDR: Minister
Jakarta (ANTARA) - Indonesia inspired bipartisan groups in the US and other countries, members of the Like-Minded Countries (LMC), to reject the Regulation on Deforestation Free Products (EUDR), according to Coordinating Minister for Economic Affairs Airlangga Hartarto.
The European Union (EU) will begin implementing the EUDR at the end of December 2024.
"The EUDR Joint Task Force, initiated by Indonesia during a joint visit between the coordinating minister for the economy and the Malaysian PM last year, received support from the LMC. Some time ago, both Republicans and Democrats in the US also questioned EUDR. Thus, LMC was inspired by Indonesia and Malaysia," Hartarto noted in a statement from his office on Thursday.
Ahead of the implementation of these regulations, Indonesia continues to actively convey several countries' concerns regarding the EUDR to relevant parties in the EU, he said.
Hartarto remarked that this included encouraging the LMC to issue two joint letters to the highest EU leadership in response to the EUDR, dated July 27, 2022 and September 7, 2023.
The US is among the ranks of countries that have criticized the EUDR.
On May 30 this year, the US Government sent a letter to EVP Maros Sefcovic, signed by US Secretary of Agriculture Thomas Vilsack, US Secretary of Commerce Gina Raimondo, and US Trade Representative Katherine Tai.
The US Government emphasized that implementing the EUDR at the end of this year will have a negative economic impact on producers and consumers in the US and the EU.
Hence, the US urges the European Commission to postpone the implementation of EUDR. More Antara News
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Malaysia to increase cooperation in palm oil and other sectors
India and Malaysia have decided to increase cooperation between the two countries in the field of palm oil and other sectors, after agriculture minister Shivraj Singh Chouhan met with Datuk Seri Johari Abdul Ghani, Minister of Plantations and Commodities of Malaysia on Thursday.
Read more at:
https://economictimes.indiatimes.com/news/economy/agriculture/malaysia-to-increase-cooperation-in-oil-palm-and-other-sectors/articleshow/111840263.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
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Malaysia seeks sugar and rice from India, prefers a pact
Updated - July 18, 2024 at 09:35 PM. | New Delhi
Plantation and Commodities Minister says Kuala Lumpur is confident of continuing palm oil exports to India, supports New Delhi’s Oil Palm Mission
Malaysia, which sells nearly one-fourth of its total palm oil exports to India alone, is confident that the demand in the south Asian country will continue to be robust and both the countries can benefit from a friendly trade relations ensuring food security for the people.
Visiting Malaysian Plantation and Commodities Minister Seri Johari Abdul Ghani said on Thursday that his country would like to have an understanding with India to ensure import of commodities such as rice and sugar and at the same time export palm oil and such an arrangement should continue even if there are restrictions.
Though he wished there should be an agreement, Johari felt that without that also it can happen as happening now in case of rice. Malaysia has been importing non-Basmati rice from India through diplomatic channels. But Johari made it clear that Malaysia does not favour “any barter” system and said it should be based on open market prices. Farmers will be dissatisfied if they do not get market rates in case there is a surge, he said.
Support to Atmanirbhar
Out of Malaysia’s 14.8 million tonnes (mt) of palm oil exports in 2023 (January-December), about 3.7 mt was bought by India. Malaysia expects a marginal increase of palm oil export to 15 mt in 2024 and same level of shipments to India as it had last year.
Earlier in the day, Johari met India’s Agriculture Minister Shivraj Singh Chouhan and offered Malaysia’s support to India’s efforts to become “Atmanirbhar” in its edible oil security goals. India has already launched the Oil Palm Mission and will soon announce the Oilseeds Mission to attain self-sufficiency.
“Malaysia stands ready to provide invaluable support, encouraging the growth of oil palm cultivation. India’s importance to Malaysia’s oil palm sector cannot be understated. This partnership will also meaningfully contribute towards achieving global food security needs and sustainability goals,” Johari said in a statement. The Hindu Businessline
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Southeast Asia to play significant role in SAF production but lacks policies, cooperation: Boeing
Results from Southeast Asia feedstock study due for release end-Aug
Growing number of SAF policies in region 'encouraging'
Boeing making progress on its green goals despite turbulent year
Southeast Asia is expected to play the most significant role in sustainable aviation fuel production globally, but the region currently lacks policies and cooperation to tap this potential, Boeing's APAC Regional Sustainability Director Robert Boyd told S&P Global Commodity Insights.
"Southeast Asia, particularly, is getting a clearer understanding of just how much potential there is and once you start to understand that well, then you go to the next steps, so really having serious discussions with policymakers to get the full supply chain together," Boyd said in an interview on the sidelines of the MyAero Sustainable Aviation Symposium in Kuala Lumpur earlier in the week started July 14.
Boeing is working on a study with the Roundtable on Sustainable Biomaterials on sustainable feedstock production in Southeast Asia, with results expected to be ready by end-August, he added.
The region is home to several major biofuel feedstock-producing countries such as Malaysia, Indonesia and Thailand. For instance, Malaysia is the world's second-largest vegetable oil supplier after Indonesia, while the country's palm oil annual output of around 19 million mt makes it the world's third-largest vegetable oil producer.
"HEFA's very familiar here. So, the hydroprocessed esters and fatty acids and the fat oils and greases, we know that there's a substantial amount of that. Particularly in Southeast Asia, Malaysia included, has great potential on the HEFA fuels," Boyd said at the conference.
The HEFA process is an established production pathway for SAF, which involves refining vegetable oils, animal fats or used cooking oils using hydrogen. It is approved for use as an aviation fuel under ASTM standards with a maximum blend ratio of 50%.
Despite the abundance of palm oil and its derivatives in Southeast Asia, the wider market remains apprehensive on palm-linked SAF due to concerns over unsustainable practices in its production process, even though such SAF can be accepted under CORSIA guidelines.
"Any producer, whatever your feedstock is, what you need to do is use the sustainability organizations to come and demonstrate that the feedstock you have complies with what's going to be expected by airlines," said Boyd.
Policy push
Although Asia lacks a regional mandate or incentive program to drive SAF adoption, like in Europe and the US, the growing number of countries adopting SAF policies in the region have been encouraging, said Boyd.
Singapore had introduced its SAF mandate earlier this year and the city-state aims to uplift 1% SAF in 2026, with plans to raise this to 3%-5% by 2030. Singapore's Civil Aviation Authority will centrally procure the SAF used for the mandate, which will be funded from levies collected from air travelers.
"Just by doing that, it has stimulated more discussion and we would certainly encourage all of the countries in this area to be having these active discussions together, because if they can think about the policy solutions collectively, you will get a better result than if each one goes off and does their own thing," he added.
Others like Malaysia has established a SAF blending mandate at 1%, with plans to hit 47% by 2050, according to its National Energy Transition Roadmap, while Indonesia is expected unveil its SAF roadmap and action plan later this year.
Boeing's green ambitions
Amid a turbulent year so far with production delays, regulatory scrutiny and investigations, as well as inferior performance on the stock market, Boyd said Boeing still remains committed to its sustainability roadmap.
"They're not connected ... For the green goals, we're making great progress this year."
The company had agreed to buy over 220,000 barrels (9.4 million gallons) of blended SAF this year, which marked its largest annual purchase of the greener aviation fuel. The purchased volume also makes up about 20% of Boeing's fuel use for the year, said Boyd.
The company is committed to deliver commercial planes that can run on pure SAF by 2030, he added.
For now, only 50% SAF blends are allowed as aromatics in conventional jet fuel allow seals to swell in engines at higher altitudes, which prevent fuel leaks.
The International Air Transport Association expects around 27% of all potential renewable fuel production capacity available in 2030 to be SAF for the global aviation sector to achieve a 5% emissions reduction by the same year. IATA estimates that SAF could contribute around 65% in emissions reduction required by the global aviation sector to meet its 2050 net-zero target.
SP Global
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July 18, 2024
Malaysia and India to work together to counter anti-palm oil campaigns
KUALA LUMPUR: Malaysia and the world's largest importer of palm oil, India, will work together to counter the anti-palm oil campaign by the West.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said India which imported 3.3 million metric tonne of palm oil worth RM13.3 billion from Malaysia in 2023, is championing Malaysia's palm oil products growth and export potential.
"India wants us to emphasise on sustainable palm oil production that can be exported to many more countries," he said.
India's push should be motivation enough for local industry players to ramp up sustainable palm oil production.
Johari is in New Delhi leading the Malaysian Agricommodity Economic Mission to India from July 17 to 18, to strengthen bilateral trade relationship and explore new cooperation opportunities.
"Industry players should start thinking about sustainable palm oil production and we hope they will continue to focus on increasing productivity," he said. New Straits Times
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Indian producers support Malaysia's fight to promote palm oil use, shut down anti palm oil sentiment
KUALA LUMPUR: The world's largest importer of palm oil, India, is throwing its weight behind Malaysia's efforts to boost the edible oil's image and use.
It is looking at ways to promote palm oil usage and shut down anti palm oil sentiment that is on the rise in the West.
In a trade dialogue with the Malaysian delegation in New Delhi, Indian Vegetable Oil Producers Association president Sudhakar Desai said rapid increase in the anti-palm oil campaign by the West poses a threat to the commodity which is essential for both Malaysia and Indonesia.
The Agricommodity Economic Mission Malaysian delegation was led by Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani. More New Straits Times
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India’s middle-class growth fuelling Malaysia’s palm oil exports, says Malaysian Minister Johari Ghani
Plantation and commodities minister Johari Ghani says India’s middle class is expected to make up 38% of its population by 2031 and 60% in 2047.
NEW DELHI: Malaysia’s palm oil exports to India will continue to rise in line with the growth of India’s middle-class consumer base, says plantation and commodities minister Johari Ghani.
Last year, Johari said Malaysia’s exports of palm oil and palm oil products to India totalled 3.3 million tonnes, valued at US$3 billion (RM14 billion), or 13% of Malaysia’s total palm oil exports.
Moving forward, I would like to reaffirm Malaysia’s commitment to being India’s trusted source of high-quality palm oil, Johari said in a keynote speech at a conference organised by the Indian Vegetable Oil Producers’ Association here today.
We are dedicated to supporting India’s food security needs and fostering a stable, enduring partnership that meets the evolving demands of this important market, he said. Free Malaysia Today
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Malaysia requests India to ease export curbs on some farm goods
MALAYSIA has requested India to ease export curbs on some farm goods like rice and sugar, Malaysia’s minister for plantation and commodities said on Thursday (Jul 18).
India, the world’s biggest exporter of rice and onions and the second biggest exporter of sugar, imposed curbs on the exports of these commodities in 2023 to keep local prices in check ahead of the general elections held in April to May.
India’s abrupt export curbs on farm goods are bad for Malaysia, Johari Abdul Ghani said on the sidelines of an industry conference in New Delhi. Business Times
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EU deforestation law may push Southeast Asia toward China
BOB SAVIC
Brussels’ regulatory imperialism may fail to save the trees and instead result in long-term isolation of Europe to the benefit of Beijing.
The Deforestation Regulations are a part of the EU’s broader carbon-reduction effort and require EU-based companies to ensure that all products they sell in the Single Market do not give rise to “imported deforestation.” This term refers to processed products or commodities whose industrialized production causes deforestation, forest degradation and loss of habitat for endangered wildlife such as orangutans. The law was implemented without sufficient multilateral engagement and risks disproportionately burdening small producers in developing countries currently supplying Europe. In that context, goods from agricultural and economic sectors crucial for everyday life and commerce, such as coffee, cattle, soybeans, palm oil, cocoa or rubber, may become scarcer in Europe, while also isolating the continent from global markets. GIS Report Online
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China to buy sustainable palm oil from Malaysia
In Malaysia, the country is committed to supplying China with Malaysian Sustainable Palm Oil (MSPO) certified palm oil and palm oil products, said YB Datuk Chan Foong Hin, Deputy Minister of Plantation and Commodities.
He added that Malaysia seeks to cooperate with China in establishing a shared consensus during engagements with the European Union, particularly regarding the European Union Deforestation Regulation (EUDR). This collaboration aims to ensure a unified stance and understanding in discussions about the EUDR’s implementation and impact. Malaysia looks forward to cooperating with China’s Ministry of Ecology and Environment (MEE) in promoting sustainable development, environmental protection, and addressing climate change through the promotion of the MSPO Certification Scheme in the Chinese market, said Chan. These issues were raised by YB Datuk Chan Foong Hin during a G2G bilateral meeting Zhao Yingmin, Vice Minister of Ecology and Environment of China, in Beijing last Friday, which received a positive response from the latter.
YB Datuk Chan Foong Hin added that Malaysia is actively addressing the four challenges presented by the EUDR namely Traceability System, Legal Land Title, Deforestation-Free, and No Forced Labour through the MSPO certification scheme which has been mandatory since January 1, 2020.
Apart from the green value chain, YB Datuk Chan Foong Hin said Malaysia welcomes initiatives by the Chinese Government to use biofuel, especially biodiesel and Sustainable Aviation Fuel (SAF). In this regards, Malaysia pledged its support on these efforts in terms of technical information exchange and supplies of biofuels. Biofuels Digest
--------
Preventing deforestation while leveraging trade for development
Developing countries must contend with a plethora of trade-related regulations as well as voluntary standards to meet market demands aimed at ensuring that global value chains comply with environmental and social objectives. Among them is the European Union’s Deforestation Regulation (EUDR), which is part of a broader EU effort to reduce carbon emissions and preserve biodiversity. The regulation requires EU businesses placing wood, coffee, cocoa, palm oil, and several other commodities onto the EU market to demonstrate that these goods aren’t linked to deforestation. In practice, the burden of supplying data to show compliance falls largely on suppliers, many from countries where small and medium-sized firms predominate.
With the approach of a December 30, 2024, deadline for compliance, the World Bank convened a seminar to discuss the challenges facing developing countries seeking to meet their climate goals while continuing to leverage international trade to reduce poverty and generate jobs. Participants included representatives of the private sector, government, and international organizations. The following transcript has been edited for length and clarity. World Bank
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Hidden danger in consuming 'dark calories’
By Qua Kiat Seng
KUALA LUMPUR (July 17): In June 2024 a World Health Organization (WHO) report said that ultra-processed food is responsible for about 391,000 deaths a year in Europe. The WHO said the four industries — ultra-processed food, alcohol, fossil fuels and tobacco — were responsible for more than 2.7 million deaths a year, about one quarter of all fatalities, on the continent. “It is estimated that at least one third of total global deaths (19 million) and 41% of non-communicable disease deaths are attributable to just four commercial products: tobacco, ultra-processed foods, fossil fuels and alcohol,” the WHO wrote.
Ultra-processed foods are those that have undergone significant alterations from their original form. They can be a patchwork of ingredients, additives, and preservatives. We must remember that some processing is necessary for food safety and convenience.
We need to eat as we need energy, nutrients, to maintain our cells, support our immune system and so on. Food is also a source of pleasure and comfort. For energy we need calories from carbohydrates, protein, and oils and fats, with carbohydrates being the most important energy source. About 30% of our calories should come from oils and fats. Not all calories are wholesome and a new term "dark calories" refers to hidden dangers associated with certain types of calories found in ultra-processed foods and seed oils.
In her just published book, Dark calories: How vegetable oils destroy our health and how we can get it back, Dr Cate Shanahan focuses on the negative impact of seed oils (eg sunflower, corn, soybean and cottonseed oils) which are often used in ultra-processed foods. Vegetable oils refer to oils derived from various parts of edible plants such as seeds, fruits (eg olive, palm and coconut oils) and other parts.
Sharing the facts The Edge Malaysia
Malaysia and India to work together to counter anti-palm oil campaigns
KUALA LUMPUR: Malaysia and the world's largest importer of palm oil, India, will work together to counter the anti-palm oil campaign by the West.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said India which imported 3.3 million metric tonne of palm oil worth RM13.3 billion from Malaysia in 2023, is championing Malaysia's palm oil products growth and export potential.
"India wants us to emphasise on sustainable palm oil production that can be exported to many more countries," he said.
India's push should be motivation enough for local industry players to ramp up sustainable palm oil production.
Johari is in New Delhi leading the Malaysian Agricommodity Economic Mission to India from July 17 to 18, to strengthen bilateral trade relationship and explore new cooperation opportunities.
"Industry players should start thinking about sustainable palm oil production and we hope they will continue to focus on increasing productivity," he said. New Straits Times
--------
Indian producers support Malaysia's fight to promote palm oil use, shut down anti palm oil sentiment
KUALA LUMPUR: The world's largest importer of palm oil, India, is throwing its weight behind Malaysia's efforts to boost the edible oil's image and use.
It is looking at ways to promote palm oil usage and shut down anti palm oil sentiment that is on the rise in the West.
In a trade dialogue with the Malaysian delegation in New Delhi, Indian Vegetable Oil Producers Association president Sudhakar Desai said rapid increase in the anti-palm oil campaign by the West poses a threat to the commodity which is essential for both Malaysia and Indonesia.
The Agricommodity Economic Mission Malaysian delegation was led by Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani. More New Straits Times
--------
India’s middle-class growth fuelling Malaysia’s palm oil exports, says Malaysian Minister Johari Ghani
Plantation and commodities minister Johari Ghani says India’s middle class is expected to make up 38% of its population by 2031 and 60% in 2047.
NEW DELHI: Malaysia’s palm oil exports to India will continue to rise in line with the growth of India’s middle-class consumer base, says plantation and commodities minister Johari Ghani.
Last year, Johari said Malaysia’s exports of palm oil and palm oil products to India totalled 3.3 million tonnes, valued at US$3 billion (RM14 billion), or 13% of Malaysia’s total palm oil exports.
Moving forward, I would like to reaffirm Malaysia’s commitment to being India’s trusted source of high-quality palm oil, Johari said in a keynote speech at a conference organised by the Indian Vegetable Oil Producers’ Association here today.
We are dedicated to supporting India’s food security needs and fostering a stable, enduring partnership that meets the evolving demands of this important market, he said. Free Malaysia Today
--------
Malaysia requests India to ease export curbs on some farm goods
MALAYSIA has requested India to ease export curbs on some farm goods like rice and sugar, Malaysia’s minister for plantation and commodities said on Thursday (Jul 18).
India, the world’s biggest exporter of rice and onions and the second biggest exporter of sugar, imposed curbs on the exports of these commodities in 2023 to keep local prices in check ahead of the general elections held in April to May.
India’s abrupt export curbs on farm goods are bad for Malaysia, Johari Abdul Ghani said on the sidelines of an industry conference in New Delhi. Business Times
--------
EU deforestation law may push Southeast Asia toward China
BOB SAVIC
Brussels’ regulatory imperialism may fail to save the trees and instead result in long-term isolation of Europe to the benefit of Beijing.
- Indonesia and Malaysia have accused the EU of challenging their sovereignty
- EU extraterritorial regulations may push Southeast Asia to other markets
- China’s claims of noninterference may lure countries away from Europe
The Deforestation Regulations are a part of the EU’s broader carbon-reduction effort and require EU-based companies to ensure that all products they sell in the Single Market do not give rise to “imported deforestation.” This term refers to processed products or commodities whose industrialized production causes deforestation, forest degradation and loss of habitat for endangered wildlife such as orangutans. The law was implemented without sufficient multilateral engagement and risks disproportionately burdening small producers in developing countries currently supplying Europe. In that context, goods from agricultural and economic sectors crucial for everyday life and commerce, such as coffee, cattle, soybeans, palm oil, cocoa or rubber, may become scarcer in Europe, while also isolating the continent from global markets. GIS Report Online
--------
China to buy sustainable palm oil from Malaysia
In Malaysia, the country is committed to supplying China with Malaysian Sustainable Palm Oil (MSPO) certified palm oil and palm oil products, said YB Datuk Chan Foong Hin, Deputy Minister of Plantation and Commodities.
He added that Malaysia seeks to cooperate with China in establishing a shared consensus during engagements with the European Union, particularly regarding the European Union Deforestation Regulation (EUDR). This collaboration aims to ensure a unified stance and understanding in discussions about the EUDR’s implementation and impact. Malaysia looks forward to cooperating with China’s Ministry of Ecology and Environment (MEE) in promoting sustainable development, environmental protection, and addressing climate change through the promotion of the MSPO Certification Scheme in the Chinese market, said Chan. These issues were raised by YB Datuk Chan Foong Hin during a G2G bilateral meeting Zhao Yingmin, Vice Minister of Ecology and Environment of China, in Beijing last Friday, which received a positive response from the latter.
YB Datuk Chan Foong Hin added that Malaysia is actively addressing the four challenges presented by the EUDR namely Traceability System, Legal Land Title, Deforestation-Free, and No Forced Labour through the MSPO certification scheme which has been mandatory since January 1, 2020.
Apart from the green value chain, YB Datuk Chan Foong Hin said Malaysia welcomes initiatives by the Chinese Government to use biofuel, especially biodiesel and Sustainable Aviation Fuel (SAF). In this regards, Malaysia pledged its support on these efforts in terms of technical information exchange and supplies of biofuels. Biofuels Digest
--------
Preventing deforestation while leveraging trade for development
Developing countries must contend with a plethora of trade-related regulations as well as voluntary standards to meet market demands aimed at ensuring that global value chains comply with environmental and social objectives. Among them is the European Union’s Deforestation Regulation (EUDR), which is part of a broader EU effort to reduce carbon emissions and preserve biodiversity. The regulation requires EU businesses placing wood, coffee, cocoa, palm oil, and several other commodities onto the EU market to demonstrate that these goods aren’t linked to deforestation. In practice, the burden of supplying data to show compliance falls largely on suppliers, many from countries where small and medium-sized firms predominate.
With the approach of a December 30, 2024, deadline for compliance, the World Bank convened a seminar to discuss the challenges facing developing countries seeking to meet their climate goals while continuing to leverage international trade to reduce poverty and generate jobs. Participants included representatives of the private sector, government, and international organizations. The following transcript has been edited for length and clarity. World Bank
--------
Hidden danger in consuming 'dark calories’
By Qua Kiat Seng
KUALA LUMPUR (July 17): In June 2024 a World Health Organization (WHO) report said that ultra-processed food is responsible for about 391,000 deaths a year in Europe. The WHO said the four industries — ultra-processed food, alcohol, fossil fuels and tobacco — were responsible for more than 2.7 million deaths a year, about one quarter of all fatalities, on the continent. “It is estimated that at least one third of total global deaths (19 million) and 41% of non-communicable disease deaths are attributable to just four commercial products: tobacco, ultra-processed foods, fossil fuels and alcohol,” the WHO wrote.
Ultra-processed foods are those that have undergone significant alterations from their original form. They can be a patchwork of ingredients, additives, and preservatives. We must remember that some processing is necessary for food safety and convenience.
We need to eat as we need energy, nutrients, to maintain our cells, support our immune system and so on. Food is also a source of pleasure and comfort. For energy we need calories from carbohydrates, protein, and oils and fats, with carbohydrates being the most important energy source. About 30% of our calories should come from oils and fats. Not all calories are wholesome and a new term "dark calories" refers to hidden dangers associated with certain types of calories found in ultra-processed foods and seed oils.
In her just published book, Dark calories: How vegetable oils destroy our health and how we can get it back, Dr Cate Shanahan focuses on the negative impact of seed oils (eg sunflower, corn, soybean and cottonseed oils) which are often used in ultra-processed foods. Vegetable oils refer to oils derived from various parts of edible plants such as seeds, fruits (eg olive, palm and coconut oils) and other parts.
Sharing the facts The Edge Malaysia
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|
July 17, 2024
MALAYSIA, CHINA TO COOPERATE ON EU DEFORESTATION REGULATION - CHAN
PUTRAJAYA, July 17 (Bernama) -- Malaysia seeks to cooperate with China in establishing a shared consensus during engagements with the European Union, particularly regarding the European Union Deforestation Regulation (EUDR), said Deputy Plantation and Commodities Minister Datuk Chan Foong Hin.
Chan affirmed Malaysia's commitment to supplying China with Malaysian Sustainable Palm Oil (MSPO) certified products, aiming to address the EUDR's implementation and impact.
“Malaysia looks forward to cooperating with China's Ministry of Ecology and Environment (MEE) to promote sustainable development, environmental protection, and address climate change through the MSPO Certification Scheme in the Chinese market,” Chan said in a statement today.
He said these issues were raised during a G2G bilateral meeting with vice minister of China's Ministry of Ecology and Environment Zhao Yingmin in Beijing last Friday, which received a positive response.
According to the statement, Chan highlighted Malaysia's active efforts to address the four challenges posed by the EUDR: Traceability System, Legal Land Title, Deforestation-Free and No Forced Labour.
The MSPO certification scheme, mandatory since Jan 1, 2020, plays a key role in these efforts.
In addition to the green value chain, Malaysia welcomes initiatives by the Chinese Government to use biofuel, especially biodiesel and Sustainable Aviation Fuel.
“In this regard, Malaysia pledges support for these efforts through technical information exchange and biofuel supplies," Chan said. Bernama
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Govt to ensure MSPO complies with EU regulations, says Malaysian Minister Johari
KUALA LUMPUR: The Agriculture and Commodities Ministry is taking various efforts to ensure that the Malaysian Sustainable Palm Oil (MYSPO) certification meets the requirements of the European Union's Forest Law Enforcement, Governance and Trade Regulation (EUDR).
Its minister Datuk Seri Johari Abdul Ghani said this is to prevent discrimination against local palm oil in the European and global markets.
The efforts include the establishment of a Joint Task Force (Ad Hoc JTF) related to EUDR in collaboration with Indonesia, the Council of Palm Oil Producing Countries (CPOPC) and the European Commission.
"Through this platform, the EU has agreed to assist in addressing the constraints faced by Malaysia and Indonesia in meeting the requirements of EUDR.
"The first Ad Hoc JTF meeting in August 2023 identified five main constraints faced.
"It encompasses issues related to smallholder participation in the supply chain, relevant national certification schemes, traceability from producer to end-user, scientific data on deforestation and protection of personal data," Johari said in a written reply to Parliament today.
He said this in response to a question from Bakri Jamaluddin (PN-Tangga Batu) who asked for updates on the ministry's efforts in its campaign to convince the EU that MYSPO certification meets the EUDR standard.
Johari said through the platform, MSPO collaborated with the European Forest Institute (EFI) to conduct an analysis of the gap between MSPO certification schemes and EUDR legislation.
The initial results showed that MYSPO has thepotential to meet EUDR regulation requirements.
"This is because Malaysia has reviewed MSPO 2.0 standards to be aligned with international norms to improve credibility and expand the scope of recognition from the global market," he said. New Straits Times
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Malaysia pushes MSPO for global palm oil market
The Plantation and Commodities Ministry is actively promoting the Malaysian Sustainable Palm Oil (MSPO) certification scheme in international markets, noting its commitment to sustainable palm oil production.
Deputy Minister Datuk Chan Foong Hin (picture) stressed the importance of MSPO in addressing the distinct characteristics of major markets such as India, China, and the European Union (EU).
“Each of these markets has distinct characteristics,” he said at the launch of the Malaysian International Food and Beverage Trade Fair (MIFB) today.
Chan explained that while India tends to buy more crude palm oil and China prefers processed palm oil, the EU market is particularly concerned with product sustainability.
The MSPO certification scheme, which is mandatory in Malaysia, sets it apart from other certification programmes.
The government, through agencies, subsidises the smallholders to certify their palm oil production through MSPO,” he said.
This approach aims to make certification more accessible to smallholders who might struggle to comply with other international standards.
Chan added that the government is promoting MSPO internationally.
“We urge international industry players to recognise that Malaysia is dedicated and committed to the sustainability of our palm oil industry,” he said.
Recent discussions had been conducted with China’s Ministry of Ecology and Environment, where he discussed recognising MSPO as a criterion for green financing by financial institutions. The Malaysian Reserve
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Malaysia's Plantation and Commodities Ministry urges trade partners to recognise MSPO
KUALA LUMPUR: The Plantation and Commodities Ministry has urged international industry players to recognise the Malaysian Sustainable Palm Oil (MSPO) certification scheme, which is dedicated to the sustainability of the palm oil industry.
Deputy Minister Datuk Chan Foong Hin said it is an ongoing government effort to promote sustainability in the Malaysian palm oil industry.
“We have three major markets, India, China, and the European Union. Each of these markets has distinct characteristics.
“For instance, India primarily purchases crude palm oil, China focuses more on processed palm oil, and the European market is highly concerned about the sustainability of the products,“ he told a press conference after officiating the Malaysian International Food and Beverage Trade Fair (MIFB) 2024 today.
He said the MSPO certification scheme is the government’s key policy tool to counter negative perceptions and to promote Malaysian palm oil. The SunMY
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EU deforestation regulation: Totschnig calls for postponement
In January 2025, the EU Deforestation Regulation is to come into force. It aims to prevent products from entering the European market that have been associated with deforestation during their production. Austria’s Minister of Agriculture is now calling for its implementation to be postponed.
EU-wide/Brussels – Austria’s Agriculture Minister Norbert Totschnig (ÖVP) is once again calling for the implementation of the EU deforestation regulation to be postponed at a meeting of EU agriculture ministers in Brussels on Monday. According to the current plan, this should come into force in January 2025. Totschnig is concerned, as he says, because of the associated reporting obligations for producers.
“It is mid-July, we don’t know exactly how this should be done,” he said to journalists in Brussels. “We have hundreds of thousands of affected individuals who still don’t know what to expect.” He shares the goal of the deforestation regulation, Totschnig said. “The question is, how do I do this smartly so that it doesn’t lead to bureaucratic overhead.”
The EU deforestation regulation aims to prevent products for which deforestation has occurred – i.e., forest area has been permanently converted into agricultural land – from entering the European market. Affected goods include, in addition to wood, also cattle or soy. (15.07.2024) European Newsroom
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What impact will EU deforestation law have on Brazilian soy trade with EU?
By Jane Byrne Feed Navigator
Two powerful soy trade groups, the Brazilian Association of Vegetable Oil Industries (ABIOVE) and the Brazilian Association of Soybean Producers (APROSOJA), report on their members' preparedness for the EUDR.
ABIOVE represents traders and processors responsible for exports, while APROSOJA represents large soybean landowners. Both associations have been vocal about the industry's readiness and the implications of the European Union Deforestation Regulation (EUDR).
ABIOVE told us that the Brazilian soy industry has long been preparing to comply with environmental legislation. “Regarding the EUDR, there are several actions underway. The main one is to persuade the EU Commission and national authorities to recognize controls and systems that companies in the sector already have for verifying legality and zero deforestation, along with the Brazilian government's official monitoring systems that generate information used by companies,” the organization said.
Brazilian soy companies, according to the trade group, have been enhancing their chain of custody controls and creating export corridors compliant with the EUDR given that the law requires segregation of soybeans, meal, and oil to ensure zero deforestation in shipments to the EU.
"Finally, together with other sectors, we are defining relevant Brazilian legislation and formats for proving compliance."
ABIOVE also commented that while it believes the EU rules are noble in their intent they were drafted and approved without fully grasping their implications on supply chains. “The EUDR fails to account for the unique realities of each production chain and country.” Feed Navigator
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Which crops are least prepared for the EUDR deadline?
By Flora Southey Food Navigator
With the EUDR deadline fast approaching, which crop is the most likely to comply? And conversely, which are predicted to cause the biggest regulatory headaches?
In less than five months’ time, the European Deforestation Regulation (EUDR) will be enforced. That means that as of 30 December, business operators will be required to prove products containing specific commodities are deforestation-free.
They’ll also need to prove that those products – whether containing palm oil, cocoa, coffee, soy, beef, rubber, and/or wood – were grown legally according to the land of production.
Time is running out, and some food crop sectors are in a better place than others. Wood, rubber, and beef aside, which commodity is the most – and least – prepped for EUDR?
Palm oil most prepared for EUDR
Interestingly, the food commodity most prepared for the impending EUDR deadline is also one with a major reputation for deforestation: palm oil. More Food Navigator
MALAYSIA, CHINA TO COOPERATE ON EU DEFORESTATION REGULATION - CHAN
PUTRAJAYA, July 17 (Bernama) -- Malaysia seeks to cooperate with China in establishing a shared consensus during engagements with the European Union, particularly regarding the European Union Deforestation Regulation (EUDR), said Deputy Plantation and Commodities Minister Datuk Chan Foong Hin.
Chan affirmed Malaysia's commitment to supplying China with Malaysian Sustainable Palm Oil (MSPO) certified products, aiming to address the EUDR's implementation and impact.
“Malaysia looks forward to cooperating with China's Ministry of Ecology and Environment (MEE) to promote sustainable development, environmental protection, and address climate change through the MSPO Certification Scheme in the Chinese market,” Chan said in a statement today.
He said these issues were raised during a G2G bilateral meeting with vice minister of China's Ministry of Ecology and Environment Zhao Yingmin in Beijing last Friday, which received a positive response.
According to the statement, Chan highlighted Malaysia's active efforts to address the four challenges posed by the EUDR: Traceability System, Legal Land Title, Deforestation-Free and No Forced Labour.
The MSPO certification scheme, mandatory since Jan 1, 2020, plays a key role in these efforts.
In addition to the green value chain, Malaysia welcomes initiatives by the Chinese Government to use biofuel, especially biodiesel and Sustainable Aviation Fuel.
“In this regard, Malaysia pledges support for these efforts through technical information exchange and biofuel supplies," Chan said. Bernama
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Govt to ensure MSPO complies with EU regulations, says Malaysian Minister Johari
KUALA LUMPUR: The Agriculture and Commodities Ministry is taking various efforts to ensure that the Malaysian Sustainable Palm Oil (MYSPO) certification meets the requirements of the European Union's Forest Law Enforcement, Governance and Trade Regulation (EUDR).
Its minister Datuk Seri Johari Abdul Ghani said this is to prevent discrimination against local palm oil in the European and global markets.
The efforts include the establishment of a Joint Task Force (Ad Hoc JTF) related to EUDR in collaboration with Indonesia, the Council of Palm Oil Producing Countries (CPOPC) and the European Commission.
"Through this platform, the EU has agreed to assist in addressing the constraints faced by Malaysia and Indonesia in meeting the requirements of EUDR.
"The first Ad Hoc JTF meeting in August 2023 identified five main constraints faced.
"It encompasses issues related to smallholder participation in the supply chain, relevant national certification schemes, traceability from producer to end-user, scientific data on deforestation and protection of personal data," Johari said in a written reply to Parliament today.
He said this in response to a question from Bakri Jamaluddin (PN-Tangga Batu) who asked for updates on the ministry's efforts in its campaign to convince the EU that MYSPO certification meets the EUDR standard.
Johari said through the platform, MSPO collaborated with the European Forest Institute (EFI) to conduct an analysis of the gap between MSPO certification schemes and EUDR legislation.
The initial results showed that MYSPO has thepotential to meet EUDR regulation requirements.
"This is because Malaysia has reviewed MSPO 2.0 standards to be aligned with international norms to improve credibility and expand the scope of recognition from the global market," he said. New Straits Times
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Malaysia pushes MSPO for global palm oil market
The Plantation and Commodities Ministry is actively promoting the Malaysian Sustainable Palm Oil (MSPO) certification scheme in international markets, noting its commitment to sustainable palm oil production.
Deputy Minister Datuk Chan Foong Hin (picture) stressed the importance of MSPO in addressing the distinct characteristics of major markets such as India, China, and the European Union (EU).
“Each of these markets has distinct characteristics,” he said at the launch of the Malaysian International Food and Beverage Trade Fair (MIFB) today.
Chan explained that while India tends to buy more crude palm oil and China prefers processed palm oil, the EU market is particularly concerned with product sustainability.
The MSPO certification scheme, which is mandatory in Malaysia, sets it apart from other certification programmes.
The government, through agencies, subsidises the smallholders to certify their palm oil production through MSPO,” he said.
This approach aims to make certification more accessible to smallholders who might struggle to comply with other international standards.
Chan added that the government is promoting MSPO internationally.
“We urge international industry players to recognise that Malaysia is dedicated and committed to the sustainability of our palm oil industry,” he said.
Recent discussions had been conducted with China’s Ministry of Ecology and Environment, where he discussed recognising MSPO as a criterion for green financing by financial institutions. The Malaysian Reserve
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Malaysia's Plantation and Commodities Ministry urges trade partners to recognise MSPO
KUALA LUMPUR: The Plantation and Commodities Ministry has urged international industry players to recognise the Malaysian Sustainable Palm Oil (MSPO) certification scheme, which is dedicated to the sustainability of the palm oil industry.
Deputy Minister Datuk Chan Foong Hin said it is an ongoing government effort to promote sustainability in the Malaysian palm oil industry.
“We have three major markets, India, China, and the European Union. Each of these markets has distinct characteristics.
“For instance, India primarily purchases crude palm oil, China focuses more on processed palm oil, and the European market is highly concerned about the sustainability of the products,“ he told a press conference after officiating the Malaysian International Food and Beverage Trade Fair (MIFB) 2024 today.
He said the MSPO certification scheme is the government’s key policy tool to counter negative perceptions and to promote Malaysian palm oil. The SunMY
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EU deforestation regulation: Totschnig calls for postponement
In January 2025, the EU Deforestation Regulation is to come into force. It aims to prevent products from entering the European market that have been associated with deforestation during their production. Austria’s Minister of Agriculture is now calling for its implementation to be postponed.
EU-wide/Brussels – Austria’s Agriculture Minister Norbert Totschnig (ÖVP) is once again calling for the implementation of the EU deforestation regulation to be postponed at a meeting of EU agriculture ministers in Brussels on Monday. According to the current plan, this should come into force in January 2025. Totschnig is concerned, as he says, because of the associated reporting obligations for producers.
“It is mid-July, we don’t know exactly how this should be done,” he said to journalists in Brussels. “We have hundreds of thousands of affected individuals who still don’t know what to expect.” He shares the goal of the deforestation regulation, Totschnig said. “The question is, how do I do this smartly so that it doesn’t lead to bureaucratic overhead.”
The EU deforestation regulation aims to prevent products for which deforestation has occurred – i.e., forest area has been permanently converted into agricultural land – from entering the European market. Affected goods include, in addition to wood, also cattle or soy. (15.07.2024) European Newsroom
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What impact will EU deforestation law have on Brazilian soy trade with EU?
By Jane Byrne Feed Navigator
Two powerful soy trade groups, the Brazilian Association of Vegetable Oil Industries (ABIOVE) and the Brazilian Association of Soybean Producers (APROSOJA), report on their members' preparedness for the EUDR.
ABIOVE represents traders and processors responsible for exports, while APROSOJA represents large soybean landowners. Both associations have been vocal about the industry's readiness and the implications of the European Union Deforestation Regulation (EUDR).
ABIOVE told us that the Brazilian soy industry has long been preparing to comply with environmental legislation. “Regarding the EUDR, there are several actions underway. The main one is to persuade the EU Commission and national authorities to recognize controls and systems that companies in the sector already have for verifying legality and zero deforestation, along with the Brazilian government's official monitoring systems that generate information used by companies,” the organization said.
Brazilian soy companies, according to the trade group, have been enhancing their chain of custody controls and creating export corridors compliant with the EUDR given that the law requires segregation of soybeans, meal, and oil to ensure zero deforestation in shipments to the EU.
"Finally, together with other sectors, we are defining relevant Brazilian legislation and formats for proving compliance."
ABIOVE also commented that while it believes the EU rules are noble in their intent they were drafted and approved without fully grasping their implications on supply chains. “The EUDR fails to account for the unique realities of each production chain and country.” Feed Navigator
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Which crops are least prepared for the EUDR deadline?
By Flora Southey Food Navigator
With the EUDR deadline fast approaching, which crop is the most likely to comply? And conversely, which are predicted to cause the biggest regulatory headaches?
In less than five months’ time, the European Deforestation Regulation (EUDR) will be enforced. That means that as of 30 December, business operators will be required to prove products containing specific commodities are deforestation-free.
They’ll also need to prove that those products – whether containing palm oil, cocoa, coffee, soy, beef, rubber, and/or wood – were grown legally according to the land of production.
Time is running out, and some food crop sectors are in a better place than others. Wood, rubber, and beef aside, which commodity is the most – and least – prepped for EUDR?
Palm oil most prepared for EUDR
Interestingly, the food commodity most prepared for the impending EUDR deadline is also one with a major reputation for deforestation: palm oil. More Food Navigator
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July 16, 2024
EU’s incorrect deforestation data risks blocking key imports, say Australia and Brazil
Countries dispute forest maps and urge Brussels to delay new rules that could ban goods entering bloc
Brussels is using incorrect data for a far-reaching initiative to ban imports from deforested land, Australia and Brazil have alleged, as they step up demands for a delay to the new regime.
Several countries contend that the EU could unilaterally bar imports of palm oil, leather, coffee and a host of other goods from areas that should be exempt when the law comes into force on December 31.
“The EU’s map is not a single source of truth but acts as one possible source of information for EU operators and competent authorities to determine if deforestation has occurred,” said a spokesperson for the Australian embassy in Brussels.
They said there were differences between Canberra’s 2023 Forests of Australia map and a 2020 map from the EU Observatory on deforestation and forest degradation, because they used different definitions of forested areas. More FT
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Palm oil sector eyes expanded presence in China: Malaysian official
KUALA LUMPUR, July 15 (Xinhua) -- Malaysia's palm oil sector is eyeing an expanded presence in China, Deputy Minister of Plantation and Commodities Chan Foong Hin said on Monday.
Among the efforts being undertaken includes cooperation with China's e-commerce platforms to expand digital market access for palm oil products, Chan said in a statement.
"Palm oil is one of the most versatile and efficient vegetable oils, with diverse and easily processed characteristics, providing significant advantages and opportunities for research and development, product innovation," he said.
Chan also emphasized that Malaysian companies must focus on high value-added and high-quality productions to remain competitive in the global market. Xinhua
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PALM OIL INDUSTRY URGED TO REPURPOSE RESIDUALS FOR SUSTAINABLE AVIATION FUEL - LIEW
KUALA LUMPUR, July 16 (Bernama) -- The palm oil industry should explore repurposing residuals as a crucial feedstock for sustainable aviation fuel (SAF), moving beyond traditional uses of palm oil, said Deputy Investment, Trade and Industry Minister Liew Chin Tong.
He emphasised the need for the palm oil industry, alongside other non-aviation sectors, to contribute to positioning Malaysia at the forefront of the sustainable fuel landscape.
"This is also an opportunity for us to connect Malaysian industries horizontally, so that not only are we supplying the global supply chain, but also creating more domestic innovations and products that will eventually be of relevance globally," he said during the opening remarks at the MyAero Sustainable Aviation Symposium 2024 today.
Liew highlighted the importance of both vertical integration within Malaysian industries and horizontal linkages between sectors to shape the aviation industry's future.
He also referenced the Malaysia Aerospace Industry Blueprint 2030, detailing 41 initiatives expected to generate RM55.2 billion annually and create 32,000 high-tech jobs by 2030.
"We hope to establish Malaysia as the aerospace hub in the region and the global community, and to build synergy with neighbouring states through promoting supply chain development and the use of sustainable alternatives such as sustainable energy fuel, electricity and hydrogen-based energy," he said. More Bernama
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Citaglobal signs JDFA with SUS for palm waste-to-energy projects
July 15, 2024 | Meghan Sapp
In Malaysia, Dagang News reports Citaglobal Bhd sealed a joint development framework agreement (JDFA) with SUS Holding Limited, a wholly owned subsidiary of Shanghai parent company SUS Environment Co Ltd (SUS Environment), the largest solid waste incinerator supplier in China.
With this JDFA, the two parties will collaborate on waste to energy (WtE) projects in Pahang and the use of agricultural waste such as empty oil palm fruit bunches (EFB) and residual palm oil to produce biomass energy in Malaysia.
This JDFA will achieve the goals of SUS Environment and Citaglobal to address the waste disposal problem in Malaysia, while promoting clean energy transition. Biofuels Digest
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Indian Exporters body urges Centre to lift palm oil import ban via Kerala ports
Seventeen years of protection is more than enough for a revival of coconut oil sector, says KEF
Stressing that the need for the removal of palm oil imports through Kerala ports, the Kerala Exporters Forum (KEF) has urged the Directorate-General of Foreign Trade (DGFT) to come up with a proper timeline for removing the trade ban on palm oil rather than continuing with unending extensions. The Hindu Businessline
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Edo host communities of palm oil companies allege injustice
The host communities of oil palm companies in Edo State are alleging injustice, violations of rights and devastation of their environment by the companies.
The communities made their cases at a Roundtable on Roundtable for Sustainable Oil Palm, RSPO, organized by the Community Development Advocacy Foundation, CODAF, in Edo State.
According to a statement on Monday by Elvira Jordan, CODAF Communications Consultant, the intent of the event held July 12 and 13 was to educate affected communities on the content of the RSPO and how it can be utilized as a tool to hold oil companies accountable to the alleged human rights and environmental concerns emanating from their operations. Vanguard Nigeria
EU’s incorrect deforestation data risks blocking key imports, say Australia and Brazil
Countries dispute forest maps and urge Brussels to delay new rules that could ban goods entering bloc
Brussels is using incorrect data for a far-reaching initiative to ban imports from deforested land, Australia and Brazil have alleged, as they step up demands for a delay to the new regime.
Several countries contend that the EU could unilaterally bar imports of palm oil, leather, coffee and a host of other goods from areas that should be exempt when the law comes into force on December 31.
“The EU’s map is not a single source of truth but acts as one possible source of information for EU operators and competent authorities to determine if deforestation has occurred,” said a spokesperson for the Australian embassy in Brussels.
They said there were differences between Canberra’s 2023 Forests of Australia map and a 2020 map from the EU Observatory on deforestation and forest degradation, because they used different definitions of forested areas. More FT
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Palm oil sector eyes expanded presence in China: Malaysian official
KUALA LUMPUR, July 15 (Xinhua) -- Malaysia's palm oil sector is eyeing an expanded presence in China, Deputy Minister of Plantation and Commodities Chan Foong Hin said on Monday.
Among the efforts being undertaken includes cooperation with China's e-commerce platforms to expand digital market access for palm oil products, Chan said in a statement.
"Palm oil is one of the most versatile and efficient vegetable oils, with diverse and easily processed characteristics, providing significant advantages and opportunities for research and development, product innovation," he said.
Chan also emphasized that Malaysian companies must focus on high value-added and high-quality productions to remain competitive in the global market. Xinhua
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PALM OIL INDUSTRY URGED TO REPURPOSE RESIDUALS FOR SUSTAINABLE AVIATION FUEL - LIEW
KUALA LUMPUR, July 16 (Bernama) -- The palm oil industry should explore repurposing residuals as a crucial feedstock for sustainable aviation fuel (SAF), moving beyond traditional uses of palm oil, said Deputy Investment, Trade and Industry Minister Liew Chin Tong.
He emphasised the need for the palm oil industry, alongside other non-aviation sectors, to contribute to positioning Malaysia at the forefront of the sustainable fuel landscape.
"This is also an opportunity for us to connect Malaysian industries horizontally, so that not only are we supplying the global supply chain, but also creating more domestic innovations and products that will eventually be of relevance globally," he said during the opening remarks at the MyAero Sustainable Aviation Symposium 2024 today.
Liew highlighted the importance of both vertical integration within Malaysian industries and horizontal linkages between sectors to shape the aviation industry's future.
He also referenced the Malaysia Aerospace Industry Blueprint 2030, detailing 41 initiatives expected to generate RM55.2 billion annually and create 32,000 high-tech jobs by 2030.
"We hope to establish Malaysia as the aerospace hub in the region and the global community, and to build synergy with neighbouring states through promoting supply chain development and the use of sustainable alternatives such as sustainable energy fuel, electricity and hydrogen-based energy," he said. More Bernama
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Citaglobal signs JDFA with SUS for palm waste-to-energy projects
July 15, 2024 | Meghan Sapp
In Malaysia, Dagang News reports Citaglobal Bhd sealed a joint development framework agreement (JDFA) with SUS Holding Limited, a wholly owned subsidiary of Shanghai parent company SUS Environment Co Ltd (SUS Environment), the largest solid waste incinerator supplier in China.
With this JDFA, the two parties will collaborate on waste to energy (WtE) projects in Pahang and the use of agricultural waste such as empty oil palm fruit bunches (EFB) and residual palm oil to produce biomass energy in Malaysia.
This JDFA will achieve the goals of SUS Environment and Citaglobal to address the waste disposal problem in Malaysia, while promoting clean energy transition. Biofuels Digest
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Indian Exporters body urges Centre to lift palm oil import ban via Kerala ports
Seventeen years of protection is more than enough for a revival of coconut oil sector, says KEF
Stressing that the need for the removal of palm oil imports through Kerala ports, the Kerala Exporters Forum (KEF) has urged the Directorate-General of Foreign Trade (DGFT) to come up with a proper timeline for removing the trade ban on palm oil rather than continuing with unending extensions. The Hindu Businessline
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Edo host communities of palm oil companies allege injustice
The host communities of oil palm companies in Edo State are alleging injustice, violations of rights and devastation of their environment by the companies.
The communities made their cases at a Roundtable on Roundtable for Sustainable Oil Palm, RSPO, organized by the Community Development Advocacy Foundation, CODAF, in Edo State.
According to a statement on Monday by Elvira Jordan, CODAF Communications Consultant, the intent of the event held July 12 and 13 was to educate affected communities on the content of the RSPO and how it can be utilized as a tool to hold oil companies accountable to the alleged human rights and environmental concerns emanating from their operations. Vanguard Nigeria
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July 15, 2024
Bureaucratic bungle: EU deforestation regs face postponement pressures amid ‘urgent’ commodity trade concerns
The EU Deforestation Regulation (EUDR) is undergoing further pressure – this time from within its own Parliament – to postpone implementation as an ‘urgent’ matter, with concerns looming over key trade commodities such as palm oil and cocoa.
The EUDR has received much criticism in recent months, particularly from palm oil industry experts and countries producing key commodities likely to be affected such as palm oil, cocoa and coffee – but now it has come under fire from within the EU parliament as well.
This dissent was led by European Peoples’ Party (EPP) environmental spokesperson Peter Liese, which pushed for an ‘urgent’ postponement and ‘far less bureaucratic’ implementation of the EUDR.
“The goal of the EUDR is correct, but its implementation is far too bureaucratic [and] the European Commission absolutely must postpone the entry into force of the deforestation regulation, then use the transitional period to reduce bureaucracy in the text,” he said via a formal statement. More Food Navigator Asia
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Indonesia’s trade surplus seen rising
JAKARTA- Indonesia’s trade surplus is expected to widen slightly in June to $2.98 billion amid a stronger export forecast, a Reuters poll on Friday showed.
The nearly $3 billion surplus in June was the median forecast from 16 economist surveyed in the poll between July 8 and July 12. In May, the trade surplus was at $2.93 billion.
Southeast Asia’s biggest economy has seen its monthly trade surplus shrinking in the past few months amid softer global commodity prices. Two of Indonesia’s main commodity exports are coal and palm oil.
Economists in the poll expected June exports to grow 5.46 percent on an annual basis, higher than 2.86 percent growth in the previous month.
Imports in June were seen rising 6.55 percent year-on-year, compared to a contraction of 8.83 percent in May.
Indonesia posted a slightly bigger-than-expected trade surplus in April of $3.56 billion, as the country saw smaller-than-estimated imports, statistics bureau data showed on Wednesday.
A Reuters poll of economists had expected a surplus of $3.30 billion. The March surplus was upwardly revised to $4.58 billion.
Indonesia has been reporting a merchandise trade surplus every month in the past four years, but the surplus has been narrowing recently amid weaker exports. More Malaya
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MALAYSIA SECURES OVER RM230 MLN IN PALM OIL TRADE DEALS DURING CHINA VISIT
KUALA LUMPUR, July 15 (Bernama) -- Malaysia has secured over RM230 million in palm oil trade deals during Deputy Plantation and Commodities Minister Datuk Chan Foong Hin’s recent working visit to China.
In a statement today, the Ministry of Plantation and Commodities (KPK) said Chan’s visit from July 8-12 to promote Malaysian agri-commodities in China has resulted in the signing of four memoranda of understanding (MoUs).
“The four MoUs were signed between Malaysian palm oil companies and businesses in China at the 15th China International Cereals and Oils Industry Summit in Nanjing on July 11, 2024,” it said.
KPK said the four MoUs signed were between Kuala Lumpur Kepong Bhd and BOCE Trade Service Co Ltd for tocotrienol exports; between Taobao (China) Software Co Ltd and Able Perfect Group for expanding digital market access; between Taobao (China) Software Co Ltd and Sawit Kinabalu Group for crude palm oil trade; and between JF Nutritech and Palmort Food Tech (Shanghai) for the application of red palm oil in animal feed.
Chan witnessed the MoU signing ceremony together with the Malaysian Palm Oil Board director-general Datuk Ahmad Parveez Ghulam Kadir and China Chamber of Commerce for Import/Export of Foodstuffs, Native Produce, and Animal By-products (CFNA) president Cao De Rong.
The minister noted that Able Perfect, an independent palm oil refinery based in Port Klang, aims to expand its presence in the Chinese market, particularly in refined palm oil and palm shortening, with an estimated business volume of about RM200 million via this trade deal. More Bernama
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Outdated narrative around palm oil is misleading investors, says former company CSO
A recent study found that the more transparent palm oil companies are in reporting their ESG performance, the less they are valued by investors. This is largely the result of a dated narrative that has shaped investor confidence in the sector, a former palm oil company sustainability chief has said.
Analysts are undervaluing the environmental, social, governance (ESG) performance of palm oil companies, because they lack a real understanding of the sector and are influenced by a “historical” narrative that shapes their commentary, a former company sustainability chief has said.
Perpetua George, the director of Asia Pacific sustainability and biodiversity at PwC Malaysia and former sustainability head of palm oil company Wilmar, said she has observed a “one-sided view” among analysts, which has led to a “lack of balance” among investors in the sector.
“Analysts have largely responded to reporting developments [from palm oil companies] by relying on public discourse or third party sources – which are often historical in nature – as a framework for reference, influencing their commentary on the topic,” she said. More Eco Business
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Is Palm Oil Really Meaningless for the Global Economy? GAPKI presents facts
Palm Oil Industry Does Not Contribute to the Global Economy (Myth 3-04)
As discussed in the issue of the insignificant contribution of palm oil to food shows that the contribution of palm oil is the largest in the provision of world vegetable oil. World palm oil production increased from around 55 million tons in 2010 to 84.2 million tons in 2021 (USDA, 2022). The increase in production was also accompanied by an increase in the volume of world palm oil trade, namely from around 40.5 million tons to 42 million tons in the same period.
The countries/regions that were the largest importers of palm oil in the world during the period 2010-2021 (Table 1) were India (18 percent), the European Union (15 percent), China (15 percent), Africa (13 percent) and the United States (4 percent).
Palm oil imported by the importing region/country is then further processed into various downstream products. Palm oil downstream activities in the country create various economic benefits. Deepening and expanding palm oil downstreaming in the importing country not only creates direct and indirect benefits for the economic sectors as a whole which are ultimately enjoyed by the community as a whole (induced consumption impact) both through direct and indirect consumption of palm oil products.
The results of the European Economics study (2016) revealed that there are at least 15 important sectors that have developed with palm oil downstreaming in palm oil importing countries. The sectors in question include food, agriculture, hotels and restaurants, textiles, construction, public administration and social security, trade, health, wood processing, chemicals and chemical products, personal services, education, and pulp and paper processing. More GAPKI
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Thousands of Hectares of Abandoned Land in Aceh, Palm Oil Farmers Ask for HGU Permits to be Revoked and Given to Them
InfoSAWIT, BANDA ACEH – Thousands of hectares of oil palm plantations in Aceh are abandoned without management. This has prompted the Aceh Oil Palm Farmers Union (SPKS) to urge President Joko Widodo to revoke the HGU (Cultivation Rights) permit for the land and grant management rights to local farmers.
SPKS Aceh Coordinator, Abubakar, revealed that many companies do not utilize the HGU granted by the state properly. Based on information from farmers in East Aceh, Aceh Tamiang, and North Aceh, many lands have not been cultivated since the permit was granted, and some have failed to be managed and are not reused by the company.
"It is very unfortunate that many lands are abandoned, while many farmers lack land for farming, therefore it is better to revoke the HGU and give it to farmers to manage, so that the land can be optimized to increase oil palm productivity and farmer welfare," said Abubakar in his statement to InfoSAWIT
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New Ireland Government summoned NBPOL
New Ireland Governor sir Julius Chan has summoned the New Britain Palm Oil, Poliamba General Manager Mr Bujang Tabau Frankie to give and update on the operations of the Company.
Mr Frankie was joined by Mill manager Mr Raga Kogilan, in a meeting with New Ireland Prvincial Government(NIPG).
Governor Chan said, “IT is important that companies in the operating in New Ireland work together with the Government.”
Issues discussed during the meeting includes;
Road user fee to be imposed on heavy equipment and trucks usage of the national road including the Westcoast Road as a result of the company’s failure to assist rehabilitate damage sections of the roads.
Support for Local growers who are denied transportation access to move their harvest into the mill at Lakurumau.
To see more community and social engagement by NBP Oil with the local Government and the Economic sector. More Post Courier
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ENB oil palm growers have being ripped off for 10 years
THE National Government will be carrying out an investigation into the Malaysian owned company, the East New Britain Palm Oil Limited.
Minister for International Trade and Investment, Richard Maru announced this in a press conference last week Friday.
The call for investigation came following numerous complaints from the oil palm farmers that they had to stop selling palm oil to this Malaysian company for more than nine weeks now because they have been consistently paid K16 for a tonne of palm oil for close to 10 years.
They claim that the company has been robbing them when they compare the price, they have been getting to what the farmers in West New Britain are getting up to about K500 per metric tonne when prices are very high in the global market as is the case today.
The New Britain Palm Oil Limited (NBPOL) in West New Britain the Fresh Fruit Bunches (FFB) price for this month include for farm gate is K412.61 and for Mill gate price at K477.26.
He said he will work closely with the Minister for Oil Palm and his team and with other stakeholders to work out the terms of reference for this investigation.
“Whilst there have been changes in palm oil price in the world market leading to changes in the farm gate prices, the East New Britain Palm Oil Limited have been paying the farmers in the Gazelle Peninsular only Kl6 per ton for the last ten years and totally ripping off our people.
“We cannot have foreign companies behaving like this as our people claim.
“They could have been robbing them of millions of kina,” Mr Maru said. More Post Courier
Bureaucratic bungle: EU deforestation regs face postponement pressures amid ‘urgent’ commodity trade concerns
The EU Deforestation Regulation (EUDR) is undergoing further pressure – this time from within its own Parliament – to postpone implementation as an ‘urgent’ matter, with concerns looming over key trade commodities such as palm oil and cocoa.
The EUDR has received much criticism in recent months, particularly from palm oil industry experts and countries producing key commodities likely to be affected such as palm oil, cocoa and coffee – but now it has come under fire from within the EU parliament as well.
This dissent was led by European Peoples’ Party (EPP) environmental spokesperson Peter Liese, which pushed for an ‘urgent’ postponement and ‘far less bureaucratic’ implementation of the EUDR.
“The goal of the EUDR is correct, but its implementation is far too bureaucratic [and] the European Commission absolutely must postpone the entry into force of the deforestation regulation, then use the transitional period to reduce bureaucracy in the text,” he said via a formal statement. More Food Navigator Asia
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Indonesia’s trade surplus seen rising
JAKARTA- Indonesia’s trade surplus is expected to widen slightly in June to $2.98 billion amid a stronger export forecast, a Reuters poll on Friday showed.
The nearly $3 billion surplus in June was the median forecast from 16 economist surveyed in the poll between July 8 and July 12. In May, the trade surplus was at $2.93 billion.
Southeast Asia’s biggest economy has seen its monthly trade surplus shrinking in the past few months amid softer global commodity prices. Two of Indonesia’s main commodity exports are coal and palm oil.
Economists in the poll expected June exports to grow 5.46 percent on an annual basis, higher than 2.86 percent growth in the previous month.
Imports in June were seen rising 6.55 percent year-on-year, compared to a contraction of 8.83 percent in May.
Indonesia posted a slightly bigger-than-expected trade surplus in April of $3.56 billion, as the country saw smaller-than-estimated imports, statistics bureau data showed on Wednesday.
A Reuters poll of economists had expected a surplus of $3.30 billion. The March surplus was upwardly revised to $4.58 billion.
Indonesia has been reporting a merchandise trade surplus every month in the past four years, but the surplus has been narrowing recently amid weaker exports. More Malaya
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MALAYSIA SECURES OVER RM230 MLN IN PALM OIL TRADE DEALS DURING CHINA VISIT
KUALA LUMPUR, July 15 (Bernama) -- Malaysia has secured over RM230 million in palm oil trade deals during Deputy Plantation and Commodities Minister Datuk Chan Foong Hin’s recent working visit to China.
In a statement today, the Ministry of Plantation and Commodities (KPK) said Chan’s visit from July 8-12 to promote Malaysian agri-commodities in China has resulted in the signing of four memoranda of understanding (MoUs).
“The four MoUs were signed between Malaysian palm oil companies and businesses in China at the 15th China International Cereals and Oils Industry Summit in Nanjing on July 11, 2024,” it said.
KPK said the four MoUs signed were between Kuala Lumpur Kepong Bhd and BOCE Trade Service Co Ltd for tocotrienol exports; between Taobao (China) Software Co Ltd and Able Perfect Group for expanding digital market access; between Taobao (China) Software Co Ltd and Sawit Kinabalu Group for crude palm oil trade; and between JF Nutritech and Palmort Food Tech (Shanghai) for the application of red palm oil in animal feed.
Chan witnessed the MoU signing ceremony together with the Malaysian Palm Oil Board director-general Datuk Ahmad Parveez Ghulam Kadir and China Chamber of Commerce for Import/Export of Foodstuffs, Native Produce, and Animal By-products (CFNA) president Cao De Rong.
The minister noted that Able Perfect, an independent palm oil refinery based in Port Klang, aims to expand its presence in the Chinese market, particularly in refined palm oil and palm shortening, with an estimated business volume of about RM200 million via this trade deal. More Bernama
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Outdated narrative around palm oil is misleading investors, says former company CSO
A recent study found that the more transparent palm oil companies are in reporting their ESG performance, the less they are valued by investors. This is largely the result of a dated narrative that has shaped investor confidence in the sector, a former palm oil company sustainability chief has said.
Analysts are undervaluing the environmental, social, governance (ESG) performance of palm oil companies, because they lack a real understanding of the sector and are influenced by a “historical” narrative that shapes their commentary, a former company sustainability chief has said.
Perpetua George, the director of Asia Pacific sustainability and biodiversity at PwC Malaysia and former sustainability head of palm oil company Wilmar, said she has observed a “one-sided view” among analysts, which has led to a “lack of balance” among investors in the sector.
“Analysts have largely responded to reporting developments [from palm oil companies] by relying on public discourse or third party sources – which are often historical in nature – as a framework for reference, influencing their commentary on the topic,” she said. More Eco Business
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Is Palm Oil Really Meaningless for the Global Economy? GAPKI presents facts
Palm Oil Industry Does Not Contribute to the Global Economy (Myth 3-04)
As discussed in the issue of the insignificant contribution of palm oil to food shows that the contribution of palm oil is the largest in the provision of world vegetable oil. World palm oil production increased from around 55 million tons in 2010 to 84.2 million tons in 2021 (USDA, 2022). The increase in production was also accompanied by an increase in the volume of world palm oil trade, namely from around 40.5 million tons to 42 million tons in the same period.
The countries/regions that were the largest importers of palm oil in the world during the period 2010-2021 (Table 1) were India (18 percent), the European Union (15 percent), China (15 percent), Africa (13 percent) and the United States (4 percent).
Palm oil imported by the importing region/country is then further processed into various downstream products. Palm oil downstream activities in the country create various economic benefits. Deepening and expanding palm oil downstreaming in the importing country not only creates direct and indirect benefits for the economic sectors as a whole which are ultimately enjoyed by the community as a whole (induced consumption impact) both through direct and indirect consumption of palm oil products.
The results of the European Economics study (2016) revealed that there are at least 15 important sectors that have developed with palm oil downstreaming in palm oil importing countries. The sectors in question include food, agriculture, hotels and restaurants, textiles, construction, public administration and social security, trade, health, wood processing, chemicals and chemical products, personal services, education, and pulp and paper processing. More GAPKI
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Thousands of Hectares of Abandoned Land in Aceh, Palm Oil Farmers Ask for HGU Permits to be Revoked and Given to Them
InfoSAWIT, BANDA ACEH – Thousands of hectares of oil palm plantations in Aceh are abandoned without management. This has prompted the Aceh Oil Palm Farmers Union (SPKS) to urge President Joko Widodo to revoke the HGU (Cultivation Rights) permit for the land and grant management rights to local farmers.
SPKS Aceh Coordinator, Abubakar, revealed that many companies do not utilize the HGU granted by the state properly. Based on information from farmers in East Aceh, Aceh Tamiang, and North Aceh, many lands have not been cultivated since the permit was granted, and some have failed to be managed and are not reused by the company.
"It is very unfortunate that many lands are abandoned, while many farmers lack land for farming, therefore it is better to revoke the HGU and give it to farmers to manage, so that the land can be optimized to increase oil palm productivity and farmer welfare," said Abubakar in his statement to InfoSAWIT
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New Ireland Government summoned NBPOL
New Ireland Governor sir Julius Chan has summoned the New Britain Palm Oil, Poliamba General Manager Mr Bujang Tabau Frankie to give and update on the operations of the Company.
Mr Frankie was joined by Mill manager Mr Raga Kogilan, in a meeting with New Ireland Prvincial Government(NIPG).
Governor Chan said, “IT is important that companies in the operating in New Ireland work together with the Government.”
Issues discussed during the meeting includes;
Road user fee to be imposed on heavy equipment and trucks usage of the national road including the Westcoast Road as a result of the company’s failure to assist rehabilitate damage sections of the roads.
Support for Local growers who are denied transportation access to move their harvest into the mill at Lakurumau.
To see more community and social engagement by NBP Oil with the local Government and the Economic sector. More Post Courier
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ENB oil palm growers have being ripped off for 10 years
THE National Government will be carrying out an investigation into the Malaysian owned company, the East New Britain Palm Oil Limited.
Minister for International Trade and Investment, Richard Maru announced this in a press conference last week Friday.
The call for investigation came following numerous complaints from the oil palm farmers that they had to stop selling palm oil to this Malaysian company for more than nine weeks now because they have been consistently paid K16 for a tonne of palm oil for close to 10 years.
They claim that the company has been robbing them when they compare the price, they have been getting to what the farmers in West New Britain are getting up to about K500 per metric tonne when prices are very high in the global market as is the case today.
The New Britain Palm Oil Limited (NBPOL) in West New Britain the Fresh Fruit Bunches (FFB) price for this month include for farm gate is K412.61 and for Mill gate price at K477.26.
He said he will work closely with the Minister for Oil Palm and his team and with other stakeholders to work out the terms of reference for this investigation.
“Whilst there have been changes in palm oil price in the world market leading to changes in the farm gate prices, the East New Britain Palm Oil Limited have been paying the farmers in the Gazelle Peninsular only Kl6 per ton for the last ten years and totally ripping off our people.
“We cannot have foreign companies behaving like this as our people claim.
“They could have been robbing them of millions of kina,” Mr Maru said. More Post Courier
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July 14, 2024
EU nightmare with Washington now attacking tedious Brussels red tape ‘head on’
EXCLUSIVE: Controversial new legislation being introduced at the end of 2024 will require companies importing goods into the bloc to prove their supply chains do not contribute to the destruction of forests.
European Union bureaucrats hellbent on turning the bloc into the “world regulator” have incurred the wrath of the United States, a Brussels insider has said.
And Pieter Cleppe said Washington’s stance would come as a bodyblow in the wake of rising dissatisfaction among emerging economies around the world - with Britain already reaping the benefits of a more flexible post-Brexit approach. More Express UK
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Malaysian delegation visits China to boost cooperation on palm oil exports
In a bid to promote Malaysian palm oil to Chinese businesses and consumers, an official from the Southeast Asian country's plantation authority led a delegation to China from July 8 to 12.
During the trip, Chan Foong Hin, Deputy Minister of the Malaysian Ministry of Plantation and Commodities, visited the cities of Shanghai, Nanjing and Beijing, where he witnessed the signing of several Memorandums of Understanding (MoUs).
The delegation also explored new business opportunities in the palm oil sector and the broader agricultural produce industry.
Chan emphasized his hope to expand Malaysian companies' cooperation with China and to help Chinese consumers better appreciate the diverse uses of palm oil.
"The Malaysian Palm Oil Board's Shanghai branch is designed to specifically address the needs of the large Chinese market by offering customized products," said the deputy minister, referring to a Malaysian government agency dedicated to serving the country's palm oil industry. Bastille Post
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FGV launches improved sustainability framework to help transform palm oil sector
KUALA LUMPUR: FGV Holdings Bhd has introduced its improved Sustainability Framework to support the nation's initiatives in transforming the palm oil industry and achieving broader sustainability objectives.
In a statement, FGV said the framework expands on its current sustainability commitments and includes five key pillars: economic growth, governance, social, environment, and innovation and technology.
FGV group chief executive officer Datuk Nazrul Mansor said the framework demonstrates its commitment to inclusive economic growth, social responsibility and environmental protection.
Aligned with the Sustainability Framework, FGV has improved its labour practices by enhancing company policies, procedures, and due diligence in the recruitment process, as well as upgrading infrastructure and housing for workers. Business Times
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Palm Oil for Food and Energy, Government Encouraged to Issue Balanced Policies
InfoSAWIT, JAKARTA – The Indonesian government is facing a major challenge in managing palm oil production to ensure sufficient supply for energy and food needs. Chairman of Rumah Sawit Indonesia (RSI), Kacuk Sumarto, emphasized the importance of policy adjustments to achieve the right balance.
It is recorded that in 2023, Indonesia's palm oil production will reach around 52.53 million tons. However, this amount is still insufficient if it has to meet food and energy needs simultaneously. Sumarto explained that the integration between food and energy needs requires mature policies. "We need to carefully calculate how much we allocate for energy and how much for food, so that there is no shortage in one sector," he said. More Info Sawit
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Palm Oil Biodiesel Incentives Only Increase Labor Output And Household Output By Around 0.31%
InfoSAWIT, JAKARTA – Researcher of Palm Oil Governance of the Sustainable Madani Foundation, Erlangga revealed that in the input-output analysis conducted by the Sustainable Madani Foundation, it shows that the use of palm oil plantation funds to finance biodiesel subsidies does not provide significant benefits to the balance of production factors compared to using it for programs directly related to the development of the palm oil plantation sector.
If all palm oil plantation fund revenues are used for the palm oil plantation sector, then the growth of production output in this sector will increase by 6.52% and also affect the production output of other sectors, such as the labor production factor increasing by 0.59%, and the output of household production factors also increasing by 0.50%. More Info Sawit
EU nightmare with Washington now attacking tedious Brussels red tape ‘head on’
EXCLUSIVE: Controversial new legislation being introduced at the end of 2024 will require companies importing goods into the bloc to prove their supply chains do not contribute to the destruction of forests.
European Union bureaucrats hellbent on turning the bloc into the “world regulator” have incurred the wrath of the United States, a Brussels insider has said.
And Pieter Cleppe said Washington’s stance would come as a bodyblow in the wake of rising dissatisfaction among emerging economies around the world - with Britain already reaping the benefits of a more flexible post-Brexit approach. More Express UK
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Malaysian delegation visits China to boost cooperation on palm oil exports
In a bid to promote Malaysian palm oil to Chinese businesses and consumers, an official from the Southeast Asian country's plantation authority led a delegation to China from July 8 to 12.
During the trip, Chan Foong Hin, Deputy Minister of the Malaysian Ministry of Plantation and Commodities, visited the cities of Shanghai, Nanjing and Beijing, where he witnessed the signing of several Memorandums of Understanding (MoUs).
The delegation also explored new business opportunities in the palm oil sector and the broader agricultural produce industry.
Chan emphasized his hope to expand Malaysian companies' cooperation with China and to help Chinese consumers better appreciate the diverse uses of palm oil.
"The Malaysian Palm Oil Board's Shanghai branch is designed to specifically address the needs of the large Chinese market by offering customized products," said the deputy minister, referring to a Malaysian government agency dedicated to serving the country's palm oil industry. Bastille Post
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FGV launches improved sustainability framework to help transform palm oil sector
KUALA LUMPUR: FGV Holdings Bhd has introduced its improved Sustainability Framework to support the nation's initiatives in transforming the palm oil industry and achieving broader sustainability objectives.
In a statement, FGV said the framework expands on its current sustainability commitments and includes five key pillars: economic growth, governance, social, environment, and innovation and technology.
FGV group chief executive officer Datuk Nazrul Mansor said the framework demonstrates its commitment to inclusive economic growth, social responsibility and environmental protection.
Aligned with the Sustainability Framework, FGV has improved its labour practices by enhancing company policies, procedures, and due diligence in the recruitment process, as well as upgrading infrastructure and housing for workers. Business Times
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Palm Oil for Food and Energy, Government Encouraged to Issue Balanced Policies
InfoSAWIT, JAKARTA – The Indonesian government is facing a major challenge in managing palm oil production to ensure sufficient supply for energy and food needs. Chairman of Rumah Sawit Indonesia (RSI), Kacuk Sumarto, emphasized the importance of policy adjustments to achieve the right balance.
It is recorded that in 2023, Indonesia's palm oil production will reach around 52.53 million tons. However, this amount is still insufficient if it has to meet food and energy needs simultaneously. Sumarto explained that the integration between food and energy needs requires mature policies. "We need to carefully calculate how much we allocate for energy and how much for food, so that there is no shortage in one sector," he said. More Info Sawit
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Palm Oil Biodiesel Incentives Only Increase Labor Output And Household Output By Around 0.31%
InfoSAWIT, JAKARTA – Researcher of Palm Oil Governance of the Sustainable Madani Foundation, Erlangga revealed that in the input-output analysis conducted by the Sustainable Madani Foundation, it shows that the use of palm oil plantation funds to finance biodiesel subsidies does not provide significant benefits to the balance of production factors compared to using it for programs directly related to the development of the palm oil plantation sector.
If all palm oil plantation fund revenues are used for the palm oil plantation sector, then the growth of production output in this sector will increase by 6.52% and also affect the production output of other sectors, such as the labor production factor increasing by 0.59%, and the output of household production factors also increasing by 0.50%. More Info Sawit
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July 13, 2024
European People’s Party proposes two-year delay to EUDR deforestation laws
Proposals have been put forward by the European People’s Party (EPP) to delay the introduction of the much-anticipated EUDR regulations aimed at tackling supply chain deforestation, reports Neill Barston.
As noted by the Palm Oil Monitor group, the call to delay the new legislation – which will have far-reaching implications for market segments including cocoa, soy and other commodities including coffee, palm oil and wood.
Peter Leise, of the EPP, has reportedly called for ‘an urgent procedure’ targeting the revision of the EUDR timetable, pushing it back until 2027 to enable further guidance and strategy surrounding its delivery to be formulated.
However, as reported earlier this week, the EU Commission appeared in no mood to entertain the growing tide of voices – including from the US government, and cocoa and oil producing nations including Malaysia and Indonesia on this major international issue.
In a letter to the Confederation of European paper industries (CEPI), EU Commissioner Virginijus Sinkevicius noted that there had indeed been concerns about the EUDR, but that there had also been ‘encouraging signs’ that other sectors were now prepared for the roll-out of the landmark legislation.
Under the proposed law due to become fully active at the end of December, European companies will be legally bound to prove that they have no deforestation in their supply chains, as well as measures securing the respect of human rights of farmers within those trading relations. More Confectionery Production
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How Malaysia-China palm oil trade spurs green development
In the first half of 2024, trade between China and ASEAN reached 3.36 trillion yuan ($463 billion), an increase of 10.5 percent year on year. As one of the most important edible oil imports for China, palm oil remains a key commodity that China imports from ASEAN, with Malaysia as its second largest import source, just behind Indonesia.
At a recent Malaysia-China Green Value Chain Partnership roundtable dialogue event, CGTN's Emma Ho speaks with industry representatives and government officials to learn more about how the palm oil trade between the two countries is advancing the green agenda. CGTN
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Anti-deforestation law’s impact on canola remains uncertain
The European Union legislation could change trade flows, but it is hard to predict the overall effect on canola demand
SASKATOON — It is unclear what impact the European Union’s looming anti-deforestation regulation will have on canola demand, says an industry official.
The EU’s Regulation on Deforestation-free Products entered into force June 29, 2023.
It stipulates that any business or trader who markets commodities such as cattle, wood, cocoa, soy, palm oil, coffee, rubber and their derived products on the EU market must be able to prove that the products do not originate from recently deforested land.
About 10 per cent of the world’s forests have been lost worldwide through deforestation over the last 10 years, according to the European Commission. That is an area larger than the entire EU.
Most businesses have been given 18 months to implement the new rules, or until Dec. 30, 2024. Micro and small enterprises were granted an extra six months to adapt until June 30, 2025.
Some analysts have suggested that the new regulation might be a boon for Canada’s canola growers because it could restrict imports of competing products such as soybeans and palm oil.
Chris Davison, president of the Canola Council of Canada, said that is far from a certainty.
“It would very much depend on what the final form of the legislation takes, how it is implemented and the ability of impacted value chains to meet and comply with whatever those requirements are,” he said in an email. Producer
European People’s Party proposes two-year delay to EUDR deforestation laws
Proposals have been put forward by the European People’s Party (EPP) to delay the introduction of the much-anticipated EUDR regulations aimed at tackling supply chain deforestation, reports Neill Barston.
As noted by the Palm Oil Monitor group, the call to delay the new legislation – which will have far-reaching implications for market segments including cocoa, soy and other commodities including coffee, palm oil and wood.
Peter Leise, of the EPP, has reportedly called for ‘an urgent procedure’ targeting the revision of the EUDR timetable, pushing it back until 2027 to enable further guidance and strategy surrounding its delivery to be formulated.
However, as reported earlier this week, the EU Commission appeared in no mood to entertain the growing tide of voices – including from the US government, and cocoa and oil producing nations including Malaysia and Indonesia on this major international issue.
In a letter to the Confederation of European paper industries (CEPI), EU Commissioner Virginijus Sinkevicius noted that there had indeed been concerns about the EUDR, but that there had also been ‘encouraging signs’ that other sectors were now prepared for the roll-out of the landmark legislation.
Under the proposed law due to become fully active at the end of December, European companies will be legally bound to prove that they have no deforestation in their supply chains, as well as measures securing the respect of human rights of farmers within those trading relations. More Confectionery Production
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How Malaysia-China palm oil trade spurs green development
In the first half of 2024, trade between China and ASEAN reached 3.36 trillion yuan ($463 billion), an increase of 10.5 percent year on year. As one of the most important edible oil imports for China, palm oil remains a key commodity that China imports from ASEAN, with Malaysia as its second largest import source, just behind Indonesia.
At a recent Malaysia-China Green Value Chain Partnership roundtable dialogue event, CGTN's Emma Ho speaks with industry representatives and government officials to learn more about how the palm oil trade between the two countries is advancing the green agenda. CGTN
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Anti-deforestation law’s impact on canola remains uncertain
The European Union legislation could change trade flows, but it is hard to predict the overall effect on canola demand
SASKATOON — It is unclear what impact the European Union’s looming anti-deforestation regulation will have on canola demand, says an industry official.
The EU’s Regulation on Deforestation-free Products entered into force June 29, 2023.
It stipulates that any business or trader who markets commodities such as cattle, wood, cocoa, soy, palm oil, coffee, rubber and their derived products on the EU market must be able to prove that the products do not originate from recently deforested land.
About 10 per cent of the world’s forests have been lost worldwide through deforestation over the last 10 years, according to the European Commission. That is an area larger than the entire EU.
Most businesses have been given 18 months to implement the new rules, or until Dec. 30, 2024. Micro and small enterprises were granted an extra six months to adapt until June 30, 2025.
Some analysts have suggested that the new regulation might be a boon for Canada’s canola growers because it could restrict imports of competing products such as soybeans and palm oil.
Chris Davison, president of the Canola Council of Canada, said that is far from a certainty.
“It would very much depend on what the final form of the legislation takes, how it is implemented and the ability of impacted value chains to meet and comply with whatever those requirements are,” he said in an email. Producer
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July 12, 2024
Oil majors back out of biofuel in Europe
Chevron furloughs workers in Germany after similar moves by BP and Shell
The European biofuel industry suffered three major disappointments in quick succession over the past month. Chevron is furloughing workers at its biodiesel plant in Oeding, Germany. The move comes after BP scaled back expansion plans for sustainable aviation fuel and renewable diesel in Europe and Shell halted construction on a big biofuel plant in Rotterdam, the Netherlands.
Chevron’s furloughs are an ominous sign for the plant. The oil company idled the plant a few months ago, which industry watchers saw as a stopgap answer to low selling prices for biofuels. The firm is now telling workers to stay home starting Aug. 1 and enrolling them in government social safety net programs. “I don’t think it would be a surprise if later this year they completely pull the plug,” says Bogdan Avramuta, an analyst at the consulting firm Rethink Research.
Matthew Stone, managing director of the market research firm Prima Markets, says Shell’s decision to stop building is the most significant, in part because the Rotterdam facility would have been one of Europe’s biggest biofuel plants. On July 5, the firm told shareholders it will write off a loss of up to $1 billion on the site, a move that makes starting it up again more difficult and less likely, Stone says.
European Union biofuel prices have been depressed since late 2022, Stone says, when inexpensive biodiesel imports from China started flooding the market. In an interview with Bloomberg News, Chevron explicitly blamed the plant’s closure on unfair trade practices by Chinese companies.
Biodiesel is made from natural fats and oils through a reaction with methanol and potassium hydroxide or sodium hydroxide. The result is fatty acid methyl esters that can burn in a diesel engine. CEN
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Deforestation-free economy key to Labour's nature ambitions
The UK last week welcomed a new Labour government, who won with a pledge to restore the country’s climate leadership and tackle what they have called a “nature emergency” at home and abroad.
If they are serious about this ambition, then ending the UK’s contribution to global deforestation must be a day-one priority.
The Labour Party’s manifesto explicitly acknowledges that the country needs to deliver its own domestic targets to be able to show credible leadership on the world stage again.
The UK brokered a world-leading global commitment to halt and reverse deforestation by 2030 at COP26 – now it’s time to live up to it.
British voters care deeply about deforestation and protecting nature. More than 60,000 people marched in London last month to call for new rules that make big businesses contribute to nature and climate recovery, and most British people say the UK is doing too little to tackle nature loss. More Global Witness
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Malaysia commits to supplying China with sustainable palm oil, says deputy minister Chan
BEIJING (July 12): Malaysia is committed to supply China with sustainable palm oil, Deputy Minister of Plantation and Commodities Datuk Chan Foong Hin said on Friday.
He also hoped the two countries could cooperate to establish a shared consensus in engagements with the European Union (EU), particularly on matters related to the European Union Deforestation Regulation (EUDR).
Malaysia is addressing four challenges presented by the EUDR by producing palm oil according to sustainable principles and criteria under the Malaysian Sustainable Palm Oil (MSPO) certification scheme, which was made mandatory in 2019, Chan said in concluding remarks wrapping up his five-day working visit here.
“Malaysia is fully committed to ensuring that all products exported to China meet the stringent requirements of the EUDR. Our adherence to the MSPO, along with the actions taken to align with EUDR criteria, ensures that our palm oil is produced sustainably and responsibly. China can be assured of the quality and sustainability of Malaysian products, as we continuously strive to uphold the highest environmental and social standards,” he said.
During his visit, he also witnessed the signing of four memoranda of understanding (MOUs) between Malaysian palm oil players and businesses in China, valued at an estimated RM231.9 million at the 15th China International Cereals and Oils Industry Summit in Nanjing on July 11.
The MOUs signed were between Kuala Lumpur Kepong Bhd (KL:KLK) and BOCE Trade Service for tocotrienol exports to China; between Taobao and Able Perfect Group, Taobao and Sawit Kinabalu, and JF Nutritech and Palmort Food Tech (Shanghai) for palm olein, palm stearin and red palm oil. The Edge Malaysia
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US Govt, ILO, Indonesian Palm Producers Continue Collaboration On Labor Rights
The US Government has announced it will continue and expand a project promoting labour rights in Indonesia’s palm sector
The project is being run in collaboration with the International Labor Organisation and the Indonesian Palm Oil Association (GAPKI)
The United States government has announced the continuation and expansion of its support for a program run through the International Labor Organization (ILO) that aims to improve labor conditions and sustainability practices in Indonesia’s palm oil industry.
The announcement was made last week at an event in Simalungun Regency in North Sumatra, which will be the site of the new program.
The US-supported program — Advancing Workers’ Rights in Indonesia Palm Oil Sector – commenced in 2019 with the ILO operating the project. It continued work that commenced in 2016 with the support of the Netherlands.
The initiative aimed to empower Indonesian palm oil unions to advocate for workers’ rights, particularly the freedom to associate and negotiate collectively. Leveraging previous ILO efforts, it sought to enhance access to labour rights and quality jobs, improve compliance with labour standards and laws, and promote social dialogue. The project also focused on strengthening unions, enforcing labour legislation, and sharing knowledge on employment and labour in the palm oil sector, targeting plantations, crude palm oil, oleo chemical factories, and food and beverage industries using palm oil.
Most recently this has included dialogues between the private sector, trade unions and government regulators, promoting ILO fundamental principles and rights.
The new initiative, named SCOPE SITALASARI, represents a collaborative effort between the U.S. government, the ILO, and the Indonesian Palm Oil Association (GAPKI).
Carter Quinley from the U.S. Department of Labor highlighted the commitment of the US Government, the ILO and GAPKI to workers’ rights worldwide. “We are looking for partners who can be leaders in improving labor conditions. We are working with the ILO to underline that Indonesia and palm oil companies are leaders in labor rights,” Quinley said.
The program aims to create a model for sustainable palm oil production that prioritizes worker welfare. Key focus areas include eliminating child labor, promoting gender equality, ensuring decent working conditions, raising awareness about occupational safety and health, and providing social security.
Simalungun Regent Radiapoh Sinaga welcomed the initiative, expressing hope that it will enhance the welfare of oil palm workers and farmers. This world-first social compliance pilot program will operate on a tripartite basis, involving the government, workers, and entrepreneurs.
Media coverage of the initiative in Indonesia has noted that the US government approach to labor rights in Indonesia is very much on a positive footing that seeks to encourage better practices rather than block Indonesia’s exports. Indonesia Palm Oil
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Solidaridad commits to improving working conditions in oil palm value chain
Kade (E/R), July 11, GNA – Mr Andre de Freitas, the Executive Director of Solidaridad Network, says the organisation’s support in the oil palm value chain is a commitment towards improving the working conditions of workers in the sector.
He said it was also to promote climate-smart practices that reduce emissions and create jobs for the people.
Mr Freitas said this when he interacted with two beneficiaries of the National Initiatives for Sustainable Climate-smart Oil Palm Smallholders Programme (NISCOPS) and Sustainable West Africa Palm Oil Programme (SWAPP) in Kade in the Eastern Region.
The working visit was to witness firsthand Solidaridad West Africa official’s work in the palm value chain in Ghana.
He was joined by Heske Verburg, Solidaridad’s Europe Manager, Mr Isaac Kwadwo Gyamfi, Regional Director, Solidaridad West Africa together with other Staff.
Solidaridad West Africa’s oil palm programmes in Ghana had, over the years, promoted competitiveness, sustainability, and inclusivity in the supply chain, improving the livelihoods of farmers, processors, and workers.
Under the National Initiatives for Sustainable Climate-smart Oil Palm Smallholders, Solidaridad developed an innovative solution to improve small-scale palm oil processing. GNA
Oil majors back out of biofuel in Europe
Chevron furloughs workers in Germany after similar moves by BP and Shell
The European biofuel industry suffered three major disappointments in quick succession over the past month. Chevron is furloughing workers at its biodiesel plant in Oeding, Germany. The move comes after BP scaled back expansion plans for sustainable aviation fuel and renewable diesel in Europe and Shell halted construction on a big biofuel plant in Rotterdam, the Netherlands.
Chevron’s furloughs are an ominous sign for the plant. The oil company idled the plant a few months ago, which industry watchers saw as a stopgap answer to low selling prices for biofuels. The firm is now telling workers to stay home starting Aug. 1 and enrolling them in government social safety net programs. “I don’t think it would be a surprise if later this year they completely pull the plug,” says Bogdan Avramuta, an analyst at the consulting firm Rethink Research.
Matthew Stone, managing director of the market research firm Prima Markets, says Shell’s decision to stop building is the most significant, in part because the Rotterdam facility would have been one of Europe’s biggest biofuel plants. On July 5, the firm told shareholders it will write off a loss of up to $1 billion on the site, a move that makes starting it up again more difficult and less likely, Stone says.
European Union biofuel prices have been depressed since late 2022, Stone says, when inexpensive biodiesel imports from China started flooding the market. In an interview with Bloomberg News, Chevron explicitly blamed the plant’s closure on unfair trade practices by Chinese companies.
Biodiesel is made from natural fats and oils through a reaction with methanol and potassium hydroxide or sodium hydroxide. The result is fatty acid methyl esters that can burn in a diesel engine. CEN
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Deforestation-free economy key to Labour's nature ambitions
The UK last week welcomed a new Labour government, who won with a pledge to restore the country’s climate leadership and tackle what they have called a “nature emergency” at home and abroad.
If they are serious about this ambition, then ending the UK’s contribution to global deforestation must be a day-one priority.
The Labour Party’s manifesto explicitly acknowledges that the country needs to deliver its own domestic targets to be able to show credible leadership on the world stage again.
The UK brokered a world-leading global commitment to halt and reverse deforestation by 2030 at COP26 – now it’s time to live up to it.
British voters care deeply about deforestation and protecting nature. More than 60,000 people marched in London last month to call for new rules that make big businesses contribute to nature and climate recovery, and most British people say the UK is doing too little to tackle nature loss. More Global Witness
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Malaysia commits to supplying China with sustainable palm oil, says deputy minister Chan
BEIJING (July 12): Malaysia is committed to supply China with sustainable palm oil, Deputy Minister of Plantation and Commodities Datuk Chan Foong Hin said on Friday.
He also hoped the two countries could cooperate to establish a shared consensus in engagements with the European Union (EU), particularly on matters related to the European Union Deforestation Regulation (EUDR).
Malaysia is addressing four challenges presented by the EUDR by producing palm oil according to sustainable principles and criteria under the Malaysian Sustainable Palm Oil (MSPO) certification scheme, which was made mandatory in 2019, Chan said in concluding remarks wrapping up his five-day working visit here.
“Malaysia is fully committed to ensuring that all products exported to China meet the stringent requirements of the EUDR. Our adherence to the MSPO, along with the actions taken to align with EUDR criteria, ensures that our palm oil is produced sustainably and responsibly. China can be assured of the quality and sustainability of Malaysian products, as we continuously strive to uphold the highest environmental and social standards,” he said.
During his visit, he also witnessed the signing of four memoranda of understanding (MOUs) between Malaysian palm oil players and businesses in China, valued at an estimated RM231.9 million at the 15th China International Cereals and Oils Industry Summit in Nanjing on July 11.
The MOUs signed were between Kuala Lumpur Kepong Bhd (KL:KLK) and BOCE Trade Service for tocotrienol exports to China; between Taobao and Able Perfect Group, Taobao and Sawit Kinabalu, and JF Nutritech and Palmort Food Tech (Shanghai) for palm olein, palm stearin and red palm oil. The Edge Malaysia
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US Govt, ILO, Indonesian Palm Producers Continue Collaboration On Labor Rights
The US Government has announced it will continue and expand a project promoting labour rights in Indonesia’s palm sector
The project is being run in collaboration with the International Labor Organisation and the Indonesian Palm Oil Association (GAPKI)
The United States government has announced the continuation and expansion of its support for a program run through the International Labor Organization (ILO) that aims to improve labor conditions and sustainability practices in Indonesia’s palm oil industry.
The announcement was made last week at an event in Simalungun Regency in North Sumatra, which will be the site of the new program.
The US-supported program — Advancing Workers’ Rights in Indonesia Palm Oil Sector – commenced in 2019 with the ILO operating the project. It continued work that commenced in 2016 with the support of the Netherlands.
The initiative aimed to empower Indonesian palm oil unions to advocate for workers’ rights, particularly the freedom to associate and negotiate collectively. Leveraging previous ILO efforts, it sought to enhance access to labour rights and quality jobs, improve compliance with labour standards and laws, and promote social dialogue. The project also focused on strengthening unions, enforcing labour legislation, and sharing knowledge on employment and labour in the palm oil sector, targeting plantations, crude palm oil, oleo chemical factories, and food and beverage industries using palm oil.
Most recently this has included dialogues between the private sector, trade unions and government regulators, promoting ILO fundamental principles and rights.
The new initiative, named SCOPE SITALASARI, represents a collaborative effort between the U.S. government, the ILO, and the Indonesian Palm Oil Association (GAPKI).
Carter Quinley from the U.S. Department of Labor highlighted the commitment of the US Government, the ILO and GAPKI to workers’ rights worldwide. “We are looking for partners who can be leaders in improving labor conditions. We are working with the ILO to underline that Indonesia and palm oil companies are leaders in labor rights,” Quinley said.
The program aims to create a model for sustainable palm oil production that prioritizes worker welfare. Key focus areas include eliminating child labor, promoting gender equality, ensuring decent working conditions, raising awareness about occupational safety and health, and providing social security.
Simalungun Regent Radiapoh Sinaga welcomed the initiative, expressing hope that it will enhance the welfare of oil palm workers and farmers. This world-first social compliance pilot program will operate on a tripartite basis, involving the government, workers, and entrepreneurs.
Media coverage of the initiative in Indonesia has noted that the US government approach to labor rights in Indonesia is very much on a positive footing that seeks to encourage better practices rather than block Indonesia’s exports. Indonesia Palm Oil
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Solidaridad commits to improving working conditions in oil palm value chain
Kade (E/R), July 11, GNA – Mr Andre de Freitas, the Executive Director of Solidaridad Network, says the organisation’s support in the oil palm value chain is a commitment towards improving the working conditions of workers in the sector.
He said it was also to promote climate-smart practices that reduce emissions and create jobs for the people.
Mr Freitas said this when he interacted with two beneficiaries of the National Initiatives for Sustainable Climate-smart Oil Palm Smallholders Programme (NISCOPS) and Sustainable West Africa Palm Oil Programme (SWAPP) in Kade in the Eastern Region.
The working visit was to witness firsthand Solidaridad West Africa official’s work in the palm value chain in Ghana.
He was joined by Heske Verburg, Solidaridad’s Europe Manager, Mr Isaac Kwadwo Gyamfi, Regional Director, Solidaridad West Africa together with other Staff.
Solidaridad West Africa’s oil palm programmes in Ghana had, over the years, promoted competitiveness, sustainability, and inclusivity in the supply chain, improving the livelihoods of farmers, processors, and workers.
Under the National Initiatives for Sustainable Climate-smart Oil Palm Smallholders, Solidaridad developed an innovative solution to improve small-scale palm oil processing. GNA
July 11, 2024
MPOC sees palm oil exports to EU stabilising over long term despite EU deforestation regulation
SHANGHAI (July 10): The Malaysian Palm Oil Council (MPOC) sees palm oil exports to the European Union (EU) stabilising in the long term and it will remain an important market for Malaysian palm oil despite challenges presented by the EU Deforestation Regulation (EUDR), as it is confident local players exporting to the region are able to meet sustainability criteria under the new rules.
“I think the demand for palm from the EU will still remain healthy because food manufacturers say it’s the most affordable oil and there’s sustainable supply from producer countries and we have met the sustainability criteria. Up to 90% of the palm or palm oil products that are exported to the EU are already sustainable. So there’s no worry that products going to the EU are not certified sustainable,” said MPOC CEO Belvinder Kaur Sron.
She said Malaysian palm oil producers exporting to the EU are “more ready” to meet the EUDR requirements with the Malaysian Sustainable Palm Oil (MSPO) certification compared to other competitors.
“We have done our gap analysis with the European Forest Institute with the MSPO, there’re just four gaps and I think we can close them,” she added.
The four gaps identified were geolocation mapping of estates, e-tracing of palm oil products along the supply chain, labour policies and definition of deforestation-free.
“I’m confident we’re very close. We’ve been receiving very encouraging responses even from the EU, to say Malaysia has moved far ahead in terms of requirements.
“It’s a matter of the EU acknowledging the MSPO as a pathway for EUDR. That’s all we want to see. They have said they are not going to endorse any certification scheme but (we hope for) at least an acknowledgement (from the EU) so that our exporters can start using the MSPO to comply as a due diligence pathway for EUDR,” Belvinder told The Edge. More The Edge Malaysia
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Indonesia plans to develop cocoa, coconut sectors using palm oil fund
JAKARTA : Indonesia plans to use funds from its palm oil export levy to finance development of the country's cocoa and coconut sectors, the country's trade minister said on Wednesday.
The world's biggest palm oil exporter has since 2015 collected a levy to fund its palm oil biodiesel mandate, smallholder replanting programme and palm oil research.
"Initially we planned for separate agencies for cocoa and coconut, but it has been decided to merge them with BPDPKS," Trade Minister Zulkifli Hasan told Reuters. BPDPKS refers to the country's agency in charge of collecting a palm oil export levy and disbursing the fund.
"It will be a cross subsidy, for cocoa and coconut development, nursery and seedlings from (the crude palm oil levy)," he said.
Indonesia currently imposed a 0-15 per cent export tax on cocoa beans, which the government will assign to BPDPKS to collect and manage, coordinating minister of economics Airlangga Hartarto said.
Zulkifli said the plans would be implemented soon and the agency has sufficient money so there was no need to impose an additional levy on cocoa and coconut producers.
In a statement, the industry ministry said the plan was needed to ensure security of supply, with cocoa output in the 2015-2023 period shrinking by 8.3 per cent annually.
Indonesia was the world's fourth-biggest exporter of cocoa products last year, though had to import 62 per cent of the cocoa beans needed, the ministry said.
Indonesia's smallholder palm oil group APKASINDO urged the government to reconsider its plan and said there was not yet enough funding for palm oil farmers.
Indonesia plans to double subsidies for palm oil replanting to 60 million rupiah ($3,695.72) per hectare from May, yet in recent budget hearing for 2025 the agency was still allocating 30 million rupiah per hectare budget for the programme. More Channel News Asia
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2024 China Sustainable Palm Oil Forum Calls for Bold Action on Supply Chain Sustainability
Annual forum of RSPO Members in China underscored the key role of RSPO Certified sustainable palm oil in reducing greenhouse gas emissions and reaffirmed strong partnerships in driving China's sustainable market transformation.
NANJING, China, July 10, 2024 /PRNewswire/ -- The 2024 China Sustainable Palm Oil Forum (8th RSPO China Forum) strongly called for decisive action to enhance inclusivity and sustainability within the palm oil supply chain. Hosted at the Shangri-La Hotel in Nanjing, Jiangsu Province, the annual event highlighted the crucial role of RSPO Certified sustainable palm oil in reducing greenhouse gas emissions, introduced new sustainability initiatives, and emphasised the importance of strong partnerships to drive market transformation in China.
Co-organised by the China Chamber of Commerce of Foodstuffs and Native Produce and Animal By-products (CFNA) and the Roundtable on Sustainable Palm Oil (RSPO), the forum showcased the sustainability efforts of Chinese enterprises. It attracted significant participation from RSPO Members, government bodies, industry associations, financial institutions, research organisations, NGOs, and certification bodies. Discussions focused on shared responsibility within the palm oil supply chain, urging stakeholders to increase their commitment to sustainable production and trade practices.
Joseph D'Cruz, CEO of RSPO, emphasised the forum's role in raising awareness and promoting certified sustainable palm oil (CSPO) in China. Celebrating RSPO's 20th anniversary, he highlighted the organisation's positive impacts over the past two decades, including s preserving over 300,000 hectares of forests within conservation areas, transitioning nearly five million hectares of palm oil landscapes to sustainable production, and certifying over 20% of total global production. He also stressed the value of local partnerships, including a five-year Memorandum of Understanding with CFNA, and reaffirmed RSPO's support for China's sustainability objectives. D'Cruz remarked, "By enhancing sustainability performance and demanding transparency, we can drive sustainable procurement and consumption of CSPO in China."
CFNA President Cao Derong expressed that "The food and agriculture system is a cornerstone of sustainable development. By adopting sustainable practices in the sourcing and processing of palm oil, China can position itself as a leader in building a global green value chain. Meanwhile, we are committed to strengthening global partnerships to address climate change and promote sustainable agriculture." More PR Newswire
MPOC sees palm oil exports to EU stabilising over long term despite EU deforestation regulation
SHANGHAI (July 10): The Malaysian Palm Oil Council (MPOC) sees palm oil exports to the European Union (EU) stabilising in the long term and it will remain an important market for Malaysian palm oil despite challenges presented by the EU Deforestation Regulation (EUDR), as it is confident local players exporting to the region are able to meet sustainability criteria under the new rules.
“I think the demand for palm from the EU will still remain healthy because food manufacturers say it’s the most affordable oil and there’s sustainable supply from producer countries and we have met the sustainability criteria. Up to 90% of the palm or palm oil products that are exported to the EU are already sustainable. So there’s no worry that products going to the EU are not certified sustainable,” said MPOC CEO Belvinder Kaur Sron.
She said Malaysian palm oil producers exporting to the EU are “more ready” to meet the EUDR requirements with the Malaysian Sustainable Palm Oil (MSPO) certification compared to other competitors.
“We have done our gap analysis with the European Forest Institute with the MSPO, there’re just four gaps and I think we can close them,” she added.
The four gaps identified were geolocation mapping of estates, e-tracing of palm oil products along the supply chain, labour policies and definition of deforestation-free.
“I’m confident we’re very close. We’ve been receiving very encouraging responses even from the EU, to say Malaysia has moved far ahead in terms of requirements.
“It’s a matter of the EU acknowledging the MSPO as a pathway for EUDR. That’s all we want to see. They have said they are not going to endorse any certification scheme but (we hope for) at least an acknowledgement (from the EU) so that our exporters can start using the MSPO to comply as a due diligence pathway for EUDR,” Belvinder told The Edge. More The Edge Malaysia
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Indonesia plans to develop cocoa, coconut sectors using palm oil fund
JAKARTA : Indonesia plans to use funds from its palm oil export levy to finance development of the country's cocoa and coconut sectors, the country's trade minister said on Wednesday.
The world's biggest palm oil exporter has since 2015 collected a levy to fund its palm oil biodiesel mandate, smallholder replanting programme and palm oil research.
"Initially we planned for separate agencies for cocoa and coconut, but it has been decided to merge them with BPDPKS," Trade Minister Zulkifli Hasan told Reuters. BPDPKS refers to the country's agency in charge of collecting a palm oil export levy and disbursing the fund.
"It will be a cross subsidy, for cocoa and coconut development, nursery and seedlings from (the crude palm oil levy)," he said.
Indonesia currently imposed a 0-15 per cent export tax on cocoa beans, which the government will assign to BPDPKS to collect and manage, coordinating minister of economics Airlangga Hartarto said.
Zulkifli said the plans would be implemented soon and the agency has sufficient money so there was no need to impose an additional levy on cocoa and coconut producers.
In a statement, the industry ministry said the plan was needed to ensure security of supply, with cocoa output in the 2015-2023 period shrinking by 8.3 per cent annually.
Indonesia was the world's fourth-biggest exporter of cocoa products last year, though had to import 62 per cent of the cocoa beans needed, the ministry said.
Indonesia's smallholder palm oil group APKASINDO urged the government to reconsider its plan and said there was not yet enough funding for palm oil farmers.
Indonesia plans to double subsidies for palm oil replanting to 60 million rupiah ($3,695.72) per hectare from May, yet in recent budget hearing for 2025 the agency was still allocating 30 million rupiah per hectare budget for the programme. More Channel News Asia
--------
2024 China Sustainable Palm Oil Forum Calls for Bold Action on Supply Chain Sustainability
Annual forum of RSPO Members in China underscored the key role of RSPO Certified sustainable palm oil in reducing greenhouse gas emissions and reaffirmed strong partnerships in driving China's sustainable market transformation.
NANJING, China, July 10, 2024 /PRNewswire/ -- The 2024 China Sustainable Palm Oil Forum (8th RSPO China Forum) strongly called for decisive action to enhance inclusivity and sustainability within the palm oil supply chain. Hosted at the Shangri-La Hotel in Nanjing, Jiangsu Province, the annual event highlighted the crucial role of RSPO Certified sustainable palm oil in reducing greenhouse gas emissions, introduced new sustainability initiatives, and emphasised the importance of strong partnerships to drive market transformation in China.
Co-organised by the China Chamber of Commerce of Foodstuffs and Native Produce and Animal By-products (CFNA) and the Roundtable on Sustainable Palm Oil (RSPO), the forum showcased the sustainability efforts of Chinese enterprises. It attracted significant participation from RSPO Members, government bodies, industry associations, financial institutions, research organisations, NGOs, and certification bodies. Discussions focused on shared responsibility within the palm oil supply chain, urging stakeholders to increase their commitment to sustainable production and trade practices.
Joseph D'Cruz, CEO of RSPO, emphasised the forum's role in raising awareness and promoting certified sustainable palm oil (CSPO) in China. Celebrating RSPO's 20th anniversary, he highlighted the organisation's positive impacts over the past two decades, including s preserving over 300,000 hectares of forests within conservation areas, transitioning nearly five million hectares of palm oil landscapes to sustainable production, and certifying over 20% of total global production. He also stressed the value of local partnerships, including a five-year Memorandum of Understanding with CFNA, and reaffirmed RSPO's support for China's sustainability objectives. D'Cruz remarked, "By enhancing sustainability performance and demanding transparency, we can drive sustainable procurement and consumption of CSPO in China."
CFNA President Cao Derong expressed that "The food and agriculture system is a cornerstone of sustainable development. By adopting sustainable practices in the sourcing and processing of palm oil, China can position itself as a leader in building a global green value chain. Meanwhile, we are committed to strengthening global partnerships to address climate change and promote sustainable agriculture." More PR Newswire
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July 10, 2024
Indonesian President Orders Firm Action Against Palm Oil Land Violations Within One Month
InfoSAWIT, JAKARTA – President Joko Widodo has instructed the resolution of the problem of palm oil plantations for smallholders within one month. This instruction was conveyed by the Coordinating Minister for Economic Affairs and Deputy Chair of the Palm Oil Task Force Airlangga Hartarto after an internal meeting with President Joko Widodo at the Presidential Palace in Jakarta, on Tuesday (9/7/2024).
The issue is included in the discussion regarding regulations and land use for palm oil. "In principle, regarding the continuation and related to land used for palm oil, well that is what is being discussed and time is still being given. The President asked for one month to be resolved," said Airlangga as reported by InfoSAWIT from Antara written on Wednesday (10/7/2024).
Furthermore, according to Airlangga, the Job Creation Law provides a three-year opportunity for palm oil land owners to make adjustments to the regulations. Currently, the three-year time limit has expired, and the government will follow up on violations related to this. Infosawit
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Digitalization of palm oil sector to help Indonesia collect corporate income tax
InfoSAWIT, JAKARTA – State revenue in 2024 is projected to fall short of the target, mainly due to the decline in corporate income tax (PPh) payments from commodity-based companies affected by the sharp price decline. This makes the State Budget (APBN) deficit estimated to be greater than the target that has been set.
The government has anticipated this condition by implementing digitalization in various sectors. Coordinating Minister for Maritime Affairs and Investment (Marvest), Luhut B. Pandjaitan, said that integrated systems such as Simbara have helped reduce the difference in figures related to mineral data, including coal and nickel.
"By reducing the differences, it will certainly also reduce the potential for state losses," said Luhut, as quoted by InfoSAWIT from his official Instagram page on Wednesday (10/7/2024).
Luhut also stated that a similar system is being implemented in the palm oil sector, considering that many potential state revenues have not been maximized. Many palm oil companies do not yet have a Taxpayer Identification Number (NPWP), making it difficult for the government to collect corporate income tax. "If this system can be implemented, tax revenues can be increased," he added.
According to Luhut, the 2024 State Budget deficit is a challenge for the government in maintaining financial stability and budget balance. The sluggish state revenues are caused by inefficiencies in various sectors, which have begun to be addressed through digitalization in government and business activities. Infosawit
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Malaysia as a hub for SAFs could meet EU and international demands
There’s a debate emerging over Sustainable Aviation Fuels (SAFs) with different countries taking different approaches to meet global climate goals. Malaysia is carving out a niche as a sustainable aviation fuel hub, leveraging its palm-based low-emissions vegetable oil production to meet all approaches.
However, a new report out from the Wall Street Journal documents the EU’s efforts to limit this promising solution to reduce greenhouse gas emissions.
The definitions of “sustainable” aviation fuel have long been subjective – debating the origins and chemical makeup of the SAF in question. Palm SAFs, in particular, have been called into question most abundantly, but Europe must understand that all approaches have their merits, with the common goal of making air travel more sustainable – and it can do so.
The EU’s ReFuelEU mandates a minimum SAF blend for all flights departing from EU airports, starting at 2% in 2025 and reaching 70% by 2050. It’s part of the EU’s broader suite of GHG emissions reduction programs. At the heart of Refuel EU is its own government definition of sustainable – and it specifically excludes any food-based crops.
The US is taking more of an incentive-based approach. The US Sustainable Aviation Fuel Grand Challenge Roadmap initiative aims to achieve large-scale SAF production and use by 2030, addressing challenges in technology, regulation, and supply chain development. There are also incentives provided under the Inflation Reduction Act.
The US definition is aligned with the global approach used by the ICAO (the International Civil Aviation Organisation), which is known as the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).
CORSIA serves as a global framework to harmonize SAF standards across different regions and countries. To qualify as sustainable under CORSIA, aviation fuel must demonstrate a significant reduction in greenhouse gas emissions. It must achieve at least a 10% reduction in emissions compared to conventional jet fuel, considering the entire lifecycle of the fuel from production to use, and it prohibits the use of biomass from lands converted after January 2008 that were previously primary forests, wetlands, or peatlands.
Two certification schemes can be used for CORSIA fuel: ISCC (International Sustainability and Carbon Certification) and the Roundtable on Sustainable Biomass (RSB).
Malaysia’s becoming a SAF hub
Malaysia is becoming something of a hub for SAFs, and it’s taking an approach that should theoretically accommodate both the EU and international approaches.
First, as a hub for used cooking oil (UCO) recycling, which means that it can meet the non-food requirements for the EU standard.
Second, as a hub for low-emissions hydrogenated vegetable oil (HVO), which forms the basis for SAFs from plant feedstocks.
Malaysian palm oil meets the CORSIA standards More My Palm Policy
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Germany’s UFOP warns current rapeseed output ‘insufficient’ to meet demand
Germany's UFOP highlighted a global rapeseed supply shortage, urging increased planting in 2025 to meet demand amidst reduced production forecasts
Germany’s vegetable oil trade group UFOP warned that current global rapeseed production forecasts suggest there will not be enough of the oilseed available to meet demand and pushed for more planting in 2025 in a press release published on Thursday July 4.
The statement builds on forecasts from the International Grain Council (IGC); it recently announced that total rapeseed production is expected to reach 87.2 million tonnes, down by 1 million tonnes from the previous forecast and a 2% drop compared with the previous year.
Much of the reduction in the forecast was attributed to a smaller Australian crop projection, which was cut by 700,000 tonnes to 5.4 million tonnes, representing close to 78% of the entire global reduction.
IGC has forecast demand at 88.7 million tonnes, down by 0.5%, leaving a global shortfall of 1.5 million tonnes and putting pressure on end-of-year stocks.
“At 5.6 million tonnes, the amount of rapeseed in storage would be as much as around 21% smaller than it was the previous year and 1 million tonnes smaller than forecast last month,” UFOP warned in the press release.
Demand for rapeseed oil in biodiesel fuel and future hydrotreated vegetable oil (HVO) production is supported by the discontinuation of the option of crediting palm oil-based biofuels toward greenhouse gas reduction obligations in Germany and other EU member states, including France and Sweden, the report said.
That teed up an opportunity for farmers to capitalize on expectations of higher prices for the oilseed, just when changing legislation would likely curb demand for rival soft oils.
Rapeseed is both a staple of cooking oil production and a mainstay of European biodiesel demand – its superior cold properties favor its use in the harsher European winter conditions, with Europe, Australia and Canada being among the biggest producers of the oilseed.
Despite Europe moving toward a future biofuel landscape that is less reliant upon both crop-based feedstocks in general and palm oil use specifically, mandates and targets in the decades ahead are likely to strain feedstock balances.
For sustainable aviation fuel (SAF) alone, Europe is tilting at achieving a 70% minimum SAF blend by 2050 – although the bloc will introduce a 2% minimum in 2025. Fast Markets
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Indonesian President Orders Firm Action Against Palm Oil Land Violations Within One Month
InfoSAWIT, JAKARTA – President Joko Widodo has instructed the resolution of the problem of palm oil plantations for smallholders within one month. This instruction was conveyed by the Coordinating Minister for Economic Affairs and Deputy Chair of the Palm Oil Task Force Airlangga Hartarto after an internal meeting with President Joko Widodo at the Presidential Palace in Jakarta, on Tuesday (9/7/2024).
The issue is included in the discussion regarding regulations and land use for palm oil. "In principle, regarding the continuation and related to land used for palm oil, well that is what is being discussed and time is still being given. The President asked for one month to be resolved," said Airlangga as reported by InfoSAWIT from Antara written on Wednesday (10/7/2024).
Furthermore, according to Airlangga, the Job Creation Law provides a three-year opportunity for palm oil land owners to make adjustments to the regulations. Currently, the three-year time limit has expired, and the government will follow up on violations related to this. Infosawit
--------
Digitalization of palm oil sector to help Indonesia collect corporate income tax
InfoSAWIT, JAKARTA – State revenue in 2024 is projected to fall short of the target, mainly due to the decline in corporate income tax (PPh) payments from commodity-based companies affected by the sharp price decline. This makes the State Budget (APBN) deficit estimated to be greater than the target that has been set.
The government has anticipated this condition by implementing digitalization in various sectors. Coordinating Minister for Maritime Affairs and Investment (Marvest), Luhut B. Pandjaitan, said that integrated systems such as Simbara have helped reduce the difference in figures related to mineral data, including coal and nickel.
"By reducing the differences, it will certainly also reduce the potential for state losses," said Luhut, as quoted by InfoSAWIT from his official Instagram page on Wednesday (10/7/2024).
Luhut also stated that a similar system is being implemented in the palm oil sector, considering that many potential state revenues have not been maximized. Many palm oil companies do not yet have a Taxpayer Identification Number (NPWP), making it difficult for the government to collect corporate income tax. "If this system can be implemented, tax revenues can be increased," he added.
According to Luhut, the 2024 State Budget deficit is a challenge for the government in maintaining financial stability and budget balance. The sluggish state revenues are caused by inefficiencies in various sectors, which have begun to be addressed through digitalization in government and business activities. Infosawit
--------
Malaysia as a hub for SAFs could meet EU and international demands
There’s a debate emerging over Sustainable Aviation Fuels (SAFs) with different countries taking different approaches to meet global climate goals. Malaysia is carving out a niche as a sustainable aviation fuel hub, leveraging its palm-based low-emissions vegetable oil production to meet all approaches.
However, a new report out from the Wall Street Journal documents the EU’s efforts to limit this promising solution to reduce greenhouse gas emissions.
The definitions of “sustainable” aviation fuel have long been subjective – debating the origins and chemical makeup of the SAF in question. Palm SAFs, in particular, have been called into question most abundantly, but Europe must understand that all approaches have their merits, with the common goal of making air travel more sustainable – and it can do so.
The EU’s ReFuelEU mandates a minimum SAF blend for all flights departing from EU airports, starting at 2% in 2025 and reaching 70% by 2050. It’s part of the EU’s broader suite of GHG emissions reduction programs. At the heart of Refuel EU is its own government definition of sustainable – and it specifically excludes any food-based crops.
The US is taking more of an incentive-based approach. The US Sustainable Aviation Fuel Grand Challenge Roadmap initiative aims to achieve large-scale SAF production and use by 2030, addressing challenges in technology, regulation, and supply chain development. There are also incentives provided under the Inflation Reduction Act.
The US definition is aligned with the global approach used by the ICAO (the International Civil Aviation Organisation), which is known as the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).
CORSIA serves as a global framework to harmonize SAF standards across different regions and countries. To qualify as sustainable under CORSIA, aviation fuel must demonstrate a significant reduction in greenhouse gas emissions. It must achieve at least a 10% reduction in emissions compared to conventional jet fuel, considering the entire lifecycle of the fuel from production to use, and it prohibits the use of biomass from lands converted after January 2008 that were previously primary forests, wetlands, or peatlands.
Two certification schemes can be used for CORSIA fuel: ISCC (International Sustainability and Carbon Certification) and the Roundtable on Sustainable Biomass (RSB).
Malaysia’s becoming a SAF hub
Malaysia is becoming something of a hub for SAFs, and it’s taking an approach that should theoretically accommodate both the EU and international approaches.
First, as a hub for used cooking oil (UCO) recycling, which means that it can meet the non-food requirements for the EU standard.
Second, as a hub for low-emissions hydrogenated vegetable oil (HVO), which forms the basis for SAFs from plant feedstocks.
Malaysian palm oil meets the CORSIA standards More My Palm Policy
--------
Germany’s UFOP warns current rapeseed output ‘insufficient’ to meet demand
Germany's UFOP highlighted a global rapeseed supply shortage, urging increased planting in 2025 to meet demand amidst reduced production forecasts
Germany’s vegetable oil trade group UFOP warned that current global rapeseed production forecasts suggest there will not be enough of the oilseed available to meet demand and pushed for more planting in 2025 in a press release published on Thursday July 4.
The statement builds on forecasts from the International Grain Council (IGC); it recently announced that total rapeseed production is expected to reach 87.2 million tonnes, down by 1 million tonnes from the previous forecast and a 2% drop compared with the previous year.
Much of the reduction in the forecast was attributed to a smaller Australian crop projection, which was cut by 700,000 tonnes to 5.4 million tonnes, representing close to 78% of the entire global reduction.
IGC has forecast demand at 88.7 million tonnes, down by 0.5%, leaving a global shortfall of 1.5 million tonnes and putting pressure on end-of-year stocks.
“At 5.6 million tonnes, the amount of rapeseed in storage would be as much as around 21% smaller than it was the previous year and 1 million tonnes smaller than forecast last month,” UFOP warned in the press release.
Demand for rapeseed oil in biodiesel fuel and future hydrotreated vegetable oil (HVO) production is supported by the discontinuation of the option of crediting palm oil-based biofuels toward greenhouse gas reduction obligations in Germany and other EU member states, including France and Sweden, the report said.
That teed up an opportunity for farmers to capitalize on expectations of higher prices for the oilseed, just when changing legislation would likely curb demand for rival soft oils.
Rapeseed is both a staple of cooking oil production and a mainstay of European biodiesel demand – its superior cold properties favor its use in the harsher European winter conditions, with Europe, Australia and Canada being among the biggest producers of the oilseed.
Despite Europe moving toward a future biofuel landscape that is less reliant upon both crop-based feedstocks in general and palm oil use specifically, mandates and targets in the decades ahead are likely to strain feedstock balances.
For sustainable aviation fuel (SAF) alone, Europe is tilting at achieving a 70% minimum SAF blend by 2050 – although the bloc will introduce a 2% minimum in 2025. Fast Markets
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July 09.2024
UNDP and the Government of Switzerland mark the initiation of their third phase aiming to drive sustainable agricultural production in 5 countries
Commencing in 2010, the Green Commodities Programme (GCP) has been pivotal in instigating transformative changes in the sustainability of agricultural production, with a focus on societal, economic, and environmental impact. Building upon the success of the two precedent phases, the renewed partnership between UNDP and the Swiss State Secretariat for Economic Affairs (SECO) aims to further enhance sustainable agricultural commodity production in five countries: Peru, Indonesia, Malaysia, Ghana, and Brazil.
As global demand for sustainable food rises, producer countries encounter significant challenges in transforming their sectors. Issues such as environmental degradation, rural poverty, climate change, and new trade barriers aimed at sustainability pose obstacles to current production models and export setups. The consequences include the departure of new generations from farming communities seeking better opportunities. The complexity of agricultural sector transformation necessitates collaboration between various stakeholders: public, private, civil society, academia, finance, development partners, etc.
Yet, stakeholders often operate in isolation, and many countries lack the mechanisms to create a widely shared vision for their sectors. The Green Commodities Programme (GCP) aims to address these challenges by fostering effective collaborative action among stakeholders in five prominent commodity-producing countries, providing them with the opportunity to construct resilient commodity sectors capable of meeting future challenges. More UNDP
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Malaysian Delegation to China to promote agricultural commodities
KUALA LUMPUR: Deputy Plantation and Commodities Minister Datuk Chan Fong Hin is leading a Malaysian delegation to China for a working visit and to promote the country’s agriculture commodities from today to July 12.
In a statement yesterday, the Plantation and Commodities Ministry said that the visit was organised by the ministry in collaboration with the Malaysian Palm Oil Board’s Palm Oil Research and Technical Service Institute.
“During the visit, the deputy minister is set to have a high-level meeting with officials from China’s General Administration of Customs, Ecology and Environment Ministry and Commerce Ministry to discuss issues between Malaysia and China, especially trade in agricultural commodities,” the ministry said.
Chan is also scheduled to deliver the keynote address at the 15th China International Cereals and Oils Industry Summit this week, where he is expected to emphasise the significance of palm oil and its role in global food security. The StarMY
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Malaysian Palm Grower Johor Plantations Ready for Tougher ESG Rules With IPO
(Bloomberg) -- Johor Plantations Group Bhd. will use funds raised in its 735 million ringgit ($156 million) initial public offering to build a palm oil operation powered by clean energy, as it navigates increasingly tough regulations in key markets like Europe.
The mid-sized producer is confident about appealing to European consumers thanks to its short, sustainability-certified supply chain and plans to halve its carbon output by next year, Managing Director Mohd Faris Adli Shukery said in an interview ahead of the listing on Tuesday.
The company’s shares rose as much as 11% to touch 0.93 ringgit on its debut before closing at 0.9 ringgit at the end of the trading day in Kuala lumpur.
Growers of the world’s most-consumed edible oil are facing heightened global scrutiny over their devastating impact on tropical rainforests, with the most immediate pressure coming from the European Union Deforestation Regulation. Due to come into effect by the end of the year, the law will force companies selling commodities like palm oil and cocoa to make sure their products don’t come from recently deforested land.
Malaysia is the world’s second-largest palm oil producer and Europe is among its biggest export markets.
For JPG, it’s a chance to accelerate its net zero plans, Faris said in the interview in Kuala Lumpur, adding that the company is committed to meeting “whatever developments that have been put by different jurisdictions.”
“Given that we have a restricted production volume and we are certified, we are optimizing that opportunity in being able to accommodate” stricter environmental requirements including the EUDR, he said.
Bigger palm oil producers have struggled to completely stamp out deforestation and prove their supply chains are fully-traceable right down to the estate. JPG, with a valuation of more than 2 billion ringgit, has only around 56,000 hectares of planted area in the southern region of Peninsular Malaysia.
“End-buyers are looking at companies which have got more distinctive characteristics,” Faris said. “In our case, you’re talking about a shorter supply chain, and a very confined geographical area of production,” he said.
The IPO is the largest in Kuala Lumpur since the first quarter of 2022, when dairy maker Farm Fresh Bhd. raised $240 million. Since then, the market for new share sales across Southeast Asia has been slow amid low valuations.
Companies that listed in Malaysia over the past 10 years with offerings larger than $100 million rose by 4% on average in their opening session, according to data compiled by Bloomberg.
JPG intends to spend its IPO proceeds on building a palm oil complex powered by renewable energy, replanting old trees, and repaying debt. It also plans to develop new income streams with three bio-methane plants that will be running by the end of the year.
The firm will launch a specialty oils and fats refinery that is a joint venture with Japanese food ingredient manufacturer Fuji Oil Holdings Inc., which when completed in 2026, will boost JPG’s revenue by at least 20%, Faris said. Bloomberg
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United States Expands Palm Oil Program Support through ILO in Simalungun Regency
InfoSAWIT, SIMALUNGUN – The United States government continues and expands support for the palm oil program through the International Labor Organization (ILO), by offering additional funds for the program that began in 2016. This step was taken as part of the United States' commitment to support the development of a sustainable palm oil industry and pay attention to workers' rights.
Simalungun Regency in North Sumatra was chosen as the world's palm oil pilot site in the new ILO program. Simalungun, especially Marihat, is known as the ancestral land of Indonesia's palm oil seed sources. Although less well-known than Marihat, Simalungun has a long history in palm seed development, with the Marihat Research Center being the forerunner of the Palm Oil Research Center (PPKS).
"PPKS is now a proud research center and seed producer. Several superior seeds are named DXP Marihat and DXP Simalungun," said the Chairman of the Indonesian Palm Oil Entrepreneurs Association (GAPKI) for Human Resource Development, Sumarjono Saragih, in his statement to InfoSAWIT , on Tuesday (9/7/2024). Sumarjono added that Simalungun Regency wants to remain an important part of the journey of the Indonesian palm oil industry. More Info Sawit
UNDP and the Government of Switzerland mark the initiation of their third phase aiming to drive sustainable agricultural production in 5 countries
Commencing in 2010, the Green Commodities Programme (GCP) has been pivotal in instigating transformative changes in the sustainability of agricultural production, with a focus on societal, economic, and environmental impact. Building upon the success of the two precedent phases, the renewed partnership between UNDP and the Swiss State Secretariat for Economic Affairs (SECO) aims to further enhance sustainable agricultural commodity production in five countries: Peru, Indonesia, Malaysia, Ghana, and Brazil.
As global demand for sustainable food rises, producer countries encounter significant challenges in transforming their sectors. Issues such as environmental degradation, rural poverty, climate change, and new trade barriers aimed at sustainability pose obstacles to current production models and export setups. The consequences include the departure of new generations from farming communities seeking better opportunities. The complexity of agricultural sector transformation necessitates collaboration between various stakeholders: public, private, civil society, academia, finance, development partners, etc.
Yet, stakeholders often operate in isolation, and many countries lack the mechanisms to create a widely shared vision for their sectors. The Green Commodities Programme (GCP) aims to address these challenges by fostering effective collaborative action among stakeholders in five prominent commodity-producing countries, providing them with the opportunity to construct resilient commodity sectors capable of meeting future challenges. More UNDP
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Malaysian Delegation to China to promote agricultural commodities
KUALA LUMPUR: Deputy Plantation and Commodities Minister Datuk Chan Fong Hin is leading a Malaysian delegation to China for a working visit and to promote the country’s agriculture commodities from today to July 12.
In a statement yesterday, the Plantation and Commodities Ministry said that the visit was organised by the ministry in collaboration with the Malaysian Palm Oil Board’s Palm Oil Research and Technical Service Institute.
“During the visit, the deputy minister is set to have a high-level meeting with officials from China’s General Administration of Customs, Ecology and Environment Ministry and Commerce Ministry to discuss issues between Malaysia and China, especially trade in agricultural commodities,” the ministry said.
Chan is also scheduled to deliver the keynote address at the 15th China International Cereals and Oils Industry Summit this week, where he is expected to emphasise the significance of palm oil and its role in global food security. The StarMY
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Malaysian Palm Grower Johor Plantations Ready for Tougher ESG Rules With IPO
- Johor Plantations shares climb on launch in Kuala Lumpur
- Firm is confident about appealing to green-minded Europeans
(Bloomberg) -- Johor Plantations Group Bhd. will use funds raised in its 735 million ringgit ($156 million) initial public offering to build a palm oil operation powered by clean energy, as it navigates increasingly tough regulations in key markets like Europe.
The mid-sized producer is confident about appealing to European consumers thanks to its short, sustainability-certified supply chain and plans to halve its carbon output by next year, Managing Director Mohd Faris Adli Shukery said in an interview ahead of the listing on Tuesday.
The company’s shares rose as much as 11% to touch 0.93 ringgit on its debut before closing at 0.9 ringgit at the end of the trading day in Kuala lumpur.
Growers of the world’s most-consumed edible oil are facing heightened global scrutiny over their devastating impact on tropical rainforests, with the most immediate pressure coming from the European Union Deforestation Regulation. Due to come into effect by the end of the year, the law will force companies selling commodities like palm oil and cocoa to make sure their products don’t come from recently deforested land.
Malaysia is the world’s second-largest palm oil producer and Europe is among its biggest export markets.
For JPG, it’s a chance to accelerate its net zero plans, Faris said in the interview in Kuala Lumpur, adding that the company is committed to meeting “whatever developments that have been put by different jurisdictions.”
“Given that we have a restricted production volume and we are certified, we are optimizing that opportunity in being able to accommodate” stricter environmental requirements including the EUDR, he said.
Bigger palm oil producers have struggled to completely stamp out deforestation and prove their supply chains are fully-traceable right down to the estate. JPG, with a valuation of more than 2 billion ringgit, has only around 56,000 hectares of planted area in the southern region of Peninsular Malaysia.
“End-buyers are looking at companies which have got more distinctive characteristics,” Faris said. “In our case, you’re talking about a shorter supply chain, and a very confined geographical area of production,” he said.
The IPO is the largest in Kuala Lumpur since the first quarter of 2022, when dairy maker Farm Fresh Bhd. raised $240 million. Since then, the market for new share sales across Southeast Asia has been slow amid low valuations.
Companies that listed in Malaysia over the past 10 years with offerings larger than $100 million rose by 4% on average in their opening session, according to data compiled by Bloomberg.
JPG intends to spend its IPO proceeds on building a palm oil complex powered by renewable energy, replanting old trees, and repaying debt. It also plans to develop new income streams with three bio-methane plants that will be running by the end of the year.
The firm will launch a specialty oils and fats refinery that is a joint venture with Japanese food ingredient manufacturer Fuji Oil Holdings Inc., which when completed in 2026, will boost JPG’s revenue by at least 20%, Faris said. Bloomberg
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United States Expands Palm Oil Program Support through ILO in Simalungun Regency
InfoSAWIT, SIMALUNGUN – The United States government continues and expands support for the palm oil program through the International Labor Organization (ILO), by offering additional funds for the program that began in 2016. This step was taken as part of the United States' commitment to support the development of a sustainable palm oil industry and pay attention to workers' rights.
Simalungun Regency in North Sumatra was chosen as the world's palm oil pilot site in the new ILO program. Simalungun, especially Marihat, is known as the ancestral land of Indonesia's palm oil seed sources. Although less well-known than Marihat, Simalungun has a long history in palm seed development, with the Marihat Research Center being the forerunner of the Palm Oil Research Center (PPKS).
"PPKS is now a proud research center and seed producer. Several superior seeds are named DXP Marihat and DXP Simalungun," said the Chairman of the Indonesian Palm Oil Entrepreneurs Association (GAPKI) for Human Resource Development, Sumarjono Saragih, in his statement to InfoSAWIT , on Tuesday (9/7/2024). Sumarjono added that Simalungun Regency wants to remain an important part of the journey of the Indonesian palm oil industry. More Info Sawit
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July 08, 2024
Jokowi Congratulates New Dutch PM Dick Schoof
Jakarta. President Joko “Jokowi” Widodo has congratulated Dick Schoof who recently rose to power as the new Dutch prime minister, succeeding Mark Rutte.
Jokowi, who will soon step down, said that he looked forward to building stronger bilateral ties with the new prime minister.
“Congratulations to Dick Schoof on your appointment as the prime minister of the Kingdom of Netherlands. I look forward to deepening our nations’ strong and enduring partnership,” Jokowi said on the social media platform X on Monday.
Former spy chief Schoof was sworn into office as the prime minister of the Dutch right-wing government just last week.
On the economic front, Indonesia-Netherlands bilateral trade dropped from $6.2 billion in 2022 to $4.8 billion the following year. Indonesia recorded almost $1.7 billion in trade with the Netherlands in the first four months of 2024, government data showed.
The Netherlands is a member of the European Union (EU). Indonesia is trying to clinch a free trade agreement with the EU no later than this year.
Last year, Jokowi met with Rutte -- who led the Netherlands for over a decade -- on the sidelines of the G20 Summit in India. Jokowi at the time told the Netherlands to back Indonesia’s membership to the dream rich country club: the Organization for Economic Co-Operation and Development (OECD). Jokowi also asked EU member Netherlands not to impose the bloc’s anti-deforestation policy that would hamper Indonesian palm oil from entering the European market.
Indonesia is also about to witness a handover of the presidential baton. Jokowi’s successor Prabowo Subianto will take his oath of office in October. Jokowi has been leading the country for ten years. Jakarta Globe
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Prabowo-Gibran administration expected to strengthen palm oil
Jakarta (ANTARA) - The next government, which will be led by Prabowo Subianto-Gibran Rakabuming Raka, is expected to strengthen the competitiveness of palm oil products as a strategic commodity for domestic and foreign markets, a scholar said.
According to Bogor Agricultural University (IPB) Professor, Rachmat Pambudy, it is necessary to have both a protective and promotive policy for palm oil.
"The government can choose a protection policy because palm oil is often unstable. There are many ways that can be done to protect palm oil in an active and passive way," he said in his statement here on Sunday.
Palm oil protection and promotion need to be actively carried out through financing support and managed by the Oil Palm Plantation Fund Management Agency (BPDPKS), he argued.
Regarding the proposal to establish the BPDPKS, Pambudy stressed that it must have a strong basis in terms of data and arguments. More Antara News
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Large ASEAN economies stable amidst external shocks: Qatar National Bank
The Qatar National Bank (QNB) has affirmed that large ASEAN economies are relatively resilient to sudden changes in risk sentiment and capital flows, according to its weekly economic commentary.
Hanoi (VNA) – The Qatar National Bank (QNB) has affirmed that large ASEAN economies are relatively resilient to sudden changes in risk sentiment and capital flows, according to its weekly economic commentary.
The economic commentary's analysis focused on the large ASEAN economies of Indonesia, Thailand, Malaysia, and the Philippines, through the assessment of external vulnerability along two dimensions: the external financing needs and the overall level of official foreign exchange (FX) reserves. Countries with large external financing needs are required to finance it either with additional foreign capital or drawing down their own FX wealth.
It pointed out that Thailand is still in a good position to weather sudden changes in capital flows. Even with international tourism still significantly below pre-pandemic levels, the situation remains stable. The country continues to run sizable current account surpluses, which helped it amass 221 billion USD in official FX reserves, comfortably covering 209% of the IMF reserve adequacy metric.
The economic commentary deemed Malaysia, a big producer of both manufacturing goods and commodities, as another resilient ASEAN economy. Like Thailand, the country had also run persistent current account surpluses for years, as a net oil and soft commodity exporter, underlining that Malaysia has been positively affected by the overall strength of commodity markets in recent years, which resulted in bigger current account surpluses. More VietnamPlus
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Trade session held to improve Pakistan-Indonesia trade
KARACHI, Jul 07 (APP):The Indonesian Consulate in Karachi, in collaboration with the Policy Advisory and Research Council of the Karachi Chamber of Commerce and Industry (KCCI), hosted a pivotal session titled “Bilateral Talks: Addressing Challenges and Identifying Solutions to Promote Trade Relations between Pakistan and Indonesia” here at a local hotel.
This important event aimed to strengthen trade ties between the two nations by addressing current challenges and exploring new opportunities.
The meeting brought together prominent stakeholders from both the countries, including officials from Ministry of trade Indonesia, Indonesian Palm Oil Association, Embassy of Islamabad and stakeholders from palm oil, paper, automotive, and food.
Participants provided valuable insights into the current trade landscape and potential areas for growth.
The session highlighted Indonesia’s significant role in supplying essential commodities to Pakistan, particularly in palm oil, where Indonesia contributes approximately 90% of Pakistan’s total imports.
Consul General of Indonesia in Karachi, Dr. June Kuncoro Hadiningrat in his opening remarks, expressed his gratitude to all the distinguished guests, including key figures such as Muhammad Zubair Motiwala, Chief Executive of TDAP, Arief Wibisono from the Ministry of Trade Indonesia, and Mohammad Younus Dagha, Chairman of PRAC. More APP
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Thailand's Palm oil exports put at 800,000 tonnes
Shipments expected to steady prices for farmers
Thailand expects to export 800,000 tonnes of crude palm oil this year, aiming to stabilise the prices of local fresh palm nuts.
Wattanasak Sur-iam, director-general of the Internal Trade Department, said the local price of domestic fresh palm nuts continues to improve, increasing to more than 5 baht per kilogramme after plummeting in April to May because of a glut.
He said the department has a plan for continued exports to reduce the excess supply, which should help increase the price of palm nuts.
In the first half this year, Thailand exported roughly 400,000 tonnes of crude palm oil, with the same amount projected for the second half, totalling 800,000 tonnes in 2024, similar to the previous year.
Thailand's crude palm oil can compete in the global market because the local and global price levels are similar, said Mr Wattanasak.
Demand for crude palm oil for domestic consumption totals 110,000 tonnes, while 120,000 tonnes is for biodiesel production and 800,000-900,000 tonnes are for export, with India the main market. More Bangkok Post
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Palm oil -- the sworn enemy of environmental defenders -- is 'an insanely productive plant' that generates far more oil per hectare of land than alternatives like soybean and coconut, says Hannah Ritchie
Humanity has made great strides in recent decades: air is cleaner; poverty, deforestation and childhood mortality have fallen; gasoline cars -- and maybe coal -- are on the way out.
This optimistic take on the state of affairs may be startling to some, but not Hannah Ritchie, a Scottish data scientist whose first book lets the facts speak for themselves.
"We just are unaware of how bad the past was," Ritchie told AFP from Edinburgh.
- Plastic and palm oil -
Ritchie's data-driven conclusions can run counter to the conventional wisdom about how to save the planet. More at Keys News
Jokowi Congratulates New Dutch PM Dick Schoof
Jakarta. President Joko “Jokowi” Widodo has congratulated Dick Schoof who recently rose to power as the new Dutch prime minister, succeeding Mark Rutte.
Jokowi, who will soon step down, said that he looked forward to building stronger bilateral ties with the new prime minister.
“Congratulations to Dick Schoof on your appointment as the prime minister of the Kingdom of Netherlands. I look forward to deepening our nations’ strong and enduring partnership,” Jokowi said on the social media platform X on Monday.
Former spy chief Schoof was sworn into office as the prime minister of the Dutch right-wing government just last week.
On the economic front, Indonesia-Netherlands bilateral trade dropped from $6.2 billion in 2022 to $4.8 billion the following year. Indonesia recorded almost $1.7 billion in trade with the Netherlands in the first four months of 2024, government data showed.
The Netherlands is a member of the European Union (EU). Indonesia is trying to clinch a free trade agreement with the EU no later than this year.
Last year, Jokowi met with Rutte -- who led the Netherlands for over a decade -- on the sidelines of the G20 Summit in India. Jokowi at the time told the Netherlands to back Indonesia’s membership to the dream rich country club: the Organization for Economic Co-Operation and Development (OECD). Jokowi also asked EU member Netherlands not to impose the bloc’s anti-deforestation policy that would hamper Indonesian palm oil from entering the European market.
Indonesia is also about to witness a handover of the presidential baton. Jokowi’s successor Prabowo Subianto will take his oath of office in October. Jokowi has been leading the country for ten years. Jakarta Globe
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Prabowo-Gibran administration expected to strengthen palm oil
Jakarta (ANTARA) - The next government, which will be led by Prabowo Subianto-Gibran Rakabuming Raka, is expected to strengthen the competitiveness of palm oil products as a strategic commodity for domestic and foreign markets, a scholar said.
According to Bogor Agricultural University (IPB) Professor, Rachmat Pambudy, it is necessary to have both a protective and promotive policy for palm oil.
"The government can choose a protection policy because palm oil is often unstable. There are many ways that can be done to protect palm oil in an active and passive way," he said in his statement here on Sunday.
Palm oil protection and promotion need to be actively carried out through financing support and managed by the Oil Palm Plantation Fund Management Agency (BPDPKS), he argued.
Regarding the proposal to establish the BPDPKS, Pambudy stressed that it must have a strong basis in terms of data and arguments. More Antara News
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Large ASEAN economies stable amidst external shocks: Qatar National Bank
The Qatar National Bank (QNB) has affirmed that large ASEAN economies are relatively resilient to sudden changes in risk sentiment and capital flows, according to its weekly economic commentary.
Hanoi (VNA) – The Qatar National Bank (QNB) has affirmed that large ASEAN economies are relatively resilient to sudden changes in risk sentiment and capital flows, according to its weekly economic commentary.
The economic commentary's analysis focused on the large ASEAN economies of Indonesia, Thailand, Malaysia, and the Philippines, through the assessment of external vulnerability along two dimensions: the external financing needs and the overall level of official foreign exchange (FX) reserves. Countries with large external financing needs are required to finance it either with additional foreign capital or drawing down their own FX wealth.
It pointed out that Thailand is still in a good position to weather sudden changes in capital flows. Even with international tourism still significantly below pre-pandemic levels, the situation remains stable. The country continues to run sizable current account surpluses, which helped it amass 221 billion USD in official FX reserves, comfortably covering 209% of the IMF reserve adequacy metric.
The economic commentary deemed Malaysia, a big producer of both manufacturing goods and commodities, as another resilient ASEAN economy. Like Thailand, the country had also run persistent current account surpluses for years, as a net oil and soft commodity exporter, underlining that Malaysia has been positively affected by the overall strength of commodity markets in recent years, which resulted in bigger current account surpluses. More VietnamPlus
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Trade session held to improve Pakistan-Indonesia trade
KARACHI, Jul 07 (APP):The Indonesian Consulate in Karachi, in collaboration with the Policy Advisory and Research Council of the Karachi Chamber of Commerce and Industry (KCCI), hosted a pivotal session titled “Bilateral Talks: Addressing Challenges and Identifying Solutions to Promote Trade Relations between Pakistan and Indonesia” here at a local hotel.
This important event aimed to strengthen trade ties between the two nations by addressing current challenges and exploring new opportunities.
The meeting brought together prominent stakeholders from both the countries, including officials from Ministry of trade Indonesia, Indonesian Palm Oil Association, Embassy of Islamabad and stakeholders from palm oil, paper, automotive, and food.
Participants provided valuable insights into the current trade landscape and potential areas for growth.
The session highlighted Indonesia’s significant role in supplying essential commodities to Pakistan, particularly in palm oil, where Indonesia contributes approximately 90% of Pakistan’s total imports.
Consul General of Indonesia in Karachi, Dr. June Kuncoro Hadiningrat in his opening remarks, expressed his gratitude to all the distinguished guests, including key figures such as Muhammad Zubair Motiwala, Chief Executive of TDAP, Arief Wibisono from the Ministry of Trade Indonesia, and Mohammad Younus Dagha, Chairman of PRAC. More APP
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Thailand's Palm oil exports put at 800,000 tonnes
Shipments expected to steady prices for farmers
Thailand expects to export 800,000 tonnes of crude palm oil this year, aiming to stabilise the prices of local fresh palm nuts.
Wattanasak Sur-iam, director-general of the Internal Trade Department, said the local price of domestic fresh palm nuts continues to improve, increasing to more than 5 baht per kilogramme after plummeting in April to May because of a glut.
He said the department has a plan for continued exports to reduce the excess supply, which should help increase the price of palm nuts.
In the first half this year, Thailand exported roughly 400,000 tonnes of crude palm oil, with the same amount projected for the second half, totalling 800,000 tonnes in 2024, similar to the previous year.
Thailand's crude palm oil can compete in the global market because the local and global price levels are similar, said Mr Wattanasak.
Demand for crude palm oil for domestic consumption totals 110,000 tonnes, while 120,000 tonnes is for biodiesel production and 800,000-900,000 tonnes are for export, with India the main market. More Bangkok Post
--------
Palm oil -- the sworn enemy of environmental defenders -- is 'an insanely productive plant' that generates far more oil per hectare of land than alternatives like soybean and coconut, says Hannah Ritchie
Humanity has made great strides in recent decades: air is cleaner; poverty, deforestation and childhood mortality have fallen; gasoline cars -- and maybe coal -- are on the way out.
This optimistic take on the state of affairs may be startling to some, but not Hannah Ritchie, a Scottish data scientist whose first book lets the facts speak for themselves.
"We just are unaware of how bad the past was," Ritchie told AFP from Edinburgh.
- Plastic and palm oil -
Ritchie's data-driven conclusions can run counter to the conventional wisdom about how to save the planet. More at Keys News
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July 07. 2024
Proposals on palm oil windfall profit levy to be submitted before Budget 2025 tabling
TAIPING, July 6 — The Plantation and Commodities Ministry will gather data on costs involved from palm oil industry players before decisions on the windfall profit levy (WPL) are sent to the Finance Ministry ( MOF).
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said all proposals related to the matter would be sent to the MOF before the tabling of Budget 2025.
“We made an average to see if the cost of producing one tonne of palm oil has reached RM3,000. If the market price of CPO (crude palm oil) has not even reached RM3,500, would we still call it windfall tax?
“The cost has increased. Before the budget (proposals are submitted to MOF), we want to do all these things, then we will propose. The decision is not mine as we have to refer to MOF, so MOF has to consider the matter when we submit the proposals,” he told reporters after officiating at the 36th Umno Bukit Gantang Representatives Meeting of 2024 at a hotel here today.
On July 4, Johari reportedly said palm oil prices will be uncompetitive compared with other producer countries, if the WPL on palm oil in this country is not revised.
The ministry earlier examined the issue of WPL raised by industry players and held consultations with relevant parties.
A WPL rate of 3 per cent is imposed on palm oil prices above RM3,000 per tonne in Peninsular Malaysia and above RM3,500 per tonne in Sabah and Sarawak. Selangor Journal
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Benue govt moves to boost oil palm production
Benue State Governor, Fr. Hyacinth Alia has said the state government is targeting 10,000 smallholder farmers under the Benue Alia Palm Project, BAPP, in the state.
Governor Alia disclosed this in Makurdi during a sensitisation meeting
with the Special Adviser to the Governor on Local Government and Chieftaincy Affairs and Heads of the Department of Agriculture in the state.
Represented by a member of the BAPP team, Mr Samuel Agwa, Gov Alia said his administration is set “to plant one million oil palms yearly and four million in the next four years and support 10,000 smallholder farmers to grow oil palms.
“We shall establish five processing mills to enhance value addition; create 20,000 direct jobs in the oil palm sector; increase oil palm production by 50 per cent in the next three years and promote sustainable farming practices and environmental protection.”
He described the Tenera oil palm as the most sought-after variety of oil palms due to its high-yielding capacity and potential to boost the income of local farmers.
Agwa encouraged the Heads of the Department of Agriculture in the state to embrace the project by taking the campaign to the grassroots to help local farmers plant them.
In his remark, the Special Adviser on Local Government and Chieftaincy Affairs, Dr Dennis Akura, says the third tier of government in the state is embracing the Benue Alia Palm Project with an initial planting of 23,000 oil palm seedlings across the 23 Local Government Areas (LGAs) of Benue State this year. More Daily PostNG
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Chevron Puts Workers on Furlough at Idled German Biofuels Plant
(Bloomberg) -- Chevron Corp. is putting workers on furlough at a German biodiesel plant that has been out of operation because of oversupply in the market.
The biodiesel plant in Oeding, in northern Germany, has been idled for a few months, a spokesman said by phone.
“This decision was made in response to a challenging margin environment, primarily caused by alleged fraud and dumping of Chinese biodiesel flooding the market,” the company said in an email.
The move is the latest twist as a surge in Chinese biodiesel exports to the Europe Union has come amid increasing concerns that producers in the bloc are being undercut by companies in Asia that are mixing fuels with cheaper feedstocks and mislabeling them. Selling biofuels in the EU is attractive because of incentives there, with fuels made from waste products fetching higher prices than those made directly from crops, as it’s more sustainable.
The Chevron facility, which produces fuel from waste ingredients such as used cooking oil, had recently been upgraded to allow it to handle other feedstocks, including brown grease and a product from the palm industry known as Pome.
The European biodiesel industry has long complained about mislabeling of feedstocks, such as palm oil, that come into Europe. The European Biodiesel Board, which represents the industry, raised the issue of Chinese imports in a letter to European Union policymakers last month.
Workers at the Chevron plant, run through its Renewable Energy Group unit, will stay at home from Aug. 1, with part of their salaries covered by a German government program that’s intended to avoid redundancies. Chevron calls on Germany to introduce a US-style accreditation system for producers, the spokesman said. Bloomberg
Proposals on palm oil windfall profit levy to be submitted before Budget 2025 tabling
TAIPING, July 6 — The Plantation and Commodities Ministry will gather data on costs involved from palm oil industry players before decisions on the windfall profit levy (WPL) are sent to the Finance Ministry ( MOF).
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said all proposals related to the matter would be sent to the MOF before the tabling of Budget 2025.
“We made an average to see if the cost of producing one tonne of palm oil has reached RM3,000. If the market price of CPO (crude palm oil) has not even reached RM3,500, would we still call it windfall tax?
“The cost has increased. Before the budget (proposals are submitted to MOF), we want to do all these things, then we will propose. The decision is not mine as we have to refer to MOF, so MOF has to consider the matter when we submit the proposals,” he told reporters after officiating at the 36th Umno Bukit Gantang Representatives Meeting of 2024 at a hotel here today.
On July 4, Johari reportedly said palm oil prices will be uncompetitive compared with other producer countries, if the WPL on palm oil in this country is not revised.
The ministry earlier examined the issue of WPL raised by industry players and held consultations with relevant parties.
A WPL rate of 3 per cent is imposed on palm oil prices above RM3,000 per tonne in Peninsular Malaysia and above RM3,500 per tonne in Sabah and Sarawak. Selangor Journal
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Benue govt moves to boost oil palm production
Benue State Governor, Fr. Hyacinth Alia has said the state government is targeting 10,000 smallholder farmers under the Benue Alia Palm Project, BAPP, in the state.
Governor Alia disclosed this in Makurdi during a sensitisation meeting
with the Special Adviser to the Governor on Local Government and Chieftaincy Affairs and Heads of the Department of Agriculture in the state.
Represented by a member of the BAPP team, Mr Samuel Agwa, Gov Alia said his administration is set “to plant one million oil palms yearly and four million in the next four years and support 10,000 smallholder farmers to grow oil palms.
“We shall establish five processing mills to enhance value addition; create 20,000 direct jobs in the oil palm sector; increase oil palm production by 50 per cent in the next three years and promote sustainable farming practices and environmental protection.”
He described the Tenera oil palm as the most sought-after variety of oil palms due to its high-yielding capacity and potential to boost the income of local farmers.
Agwa encouraged the Heads of the Department of Agriculture in the state to embrace the project by taking the campaign to the grassroots to help local farmers plant them.
In his remark, the Special Adviser on Local Government and Chieftaincy Affairs, Dr Dennis Akura, says the third tier of government in the state is embracing the Benue Alia Palm Project with an initial planting of 23,000 oil palm seedlings across the 23 Local Government Areas (LGAs) of Benue State this year. More Daily PostNG
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Chevron Puts Workers on Furlough at Idled German Biofuels Plant
- Chinese biodiesel is flooding the market, Chevron says
- Biodiesel plant has been upgraded to expand feedstocks
(Bloomberg) -- Chevron Corp. is putting workers on furlough at a German biodiesel plant that has been out of operation because of oversupply in the market.
The biodiesel plant in Oeding, in northern Germany, has been idled for a few months, a spokesman said by phone.
“This decision was made in response to a challenging margin environment, primarily caused by alleged fraud and dumping of Chinese biodiesel flooding the market,” the company said in an email.
The move is the latest twist as a surge in Chinese biodiesel exports to the Europe Union has come amid increasing concerns that producers in the bloc are being undercut by companies in Asia that are mixing fuels with cheaper feedstocks and mislabeling them. Selling biofuels in the EU is attractive because of incentives there, with fuels made from waste products fetching higher prices than those made directly from crops, as it’s more sustainable.
The Chevron facility, which produces fuel from waste ingredients such as used cooking oil, had recently been upgraded to allow it to handle other feedstocks, including brown grease and a product from the palm industry known as Pome.
The European biodiesel industry has long complained about mislabeling of feedstocks, such as palm oil, that come into Europe. The European Biodiesel Board, which represents the industry, raised the issue of Chinese imports in a letter to European Union policymakers last month.
Workers at the Chevron plant, run through its Renewable Energy Group unit, will stay at home from Aug. 1, with part of their salaries covered by a German government program that’s intended to avoid redundancies. Chevron calls on Germany to introduce a US-style accreditation system for producers, the spokesman said. Bloomberg
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July 06, 2024
EU resists calls to delay deforestation law, letter shows
BRUSSELS (Reuters) – The European Union has resisted calls from some industries and countries to delay its flagship policy to fight deforestation, a letter seen by Reuters on Friday showed.
The deforestation law will, from Dec. 30, require companies selling soy, beef, coffee, palm oil and other products in the 27-nation bloc to prove their supply chains do not contribute to the destruction of forests. Equally, EU companies will be banned from exporting products cultivated on deforested land.
The U.S. government and industry groups including the Confederation of European Paper Industries (CEPI) want the policy delayed, citing complaints including that the EU’s systems for managing the ban are not yet finished.
In a letter to CEPI members, dated July 2, European Environment Commissioner Virginijus Sinkevicius acknowledged such concerns but gave no indication that Brussels was considering a delay.
“We are hearing feedback from some stakeholders that preparation for implementation may be challenging. However, we also see encouraging signs in many sectors and countries working to align with EUDR (EU Deforestation Regulation) requirements,” said the letter.
Sinkevicius said work on an online system to let companies submit their due diligence statements was underway.
Asked about the industry’s concerns, CEPI Director General Jori Ringman told Reuters it was unfeasible for book publishers, for example, to trace the origins of their paper back to potentially thousands of forest plots.
“Neither the guidance nor the EUDR information system are ready,” Ringman added, referring to the system that will allow companies to submit their due diligence statements. More Swissinfo
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The Intricate Dance: Climate Change, Economics, And The Palm Oil Conundrum – OpEd
The relationship between climate change, international economics, and the global dynamics of palm oil production presents a wide range of complex challenges and opportunities. It is crucial to thoroughly examine the multifaceted consequences of climate change on the global economy to fully understand its economic impact. Climate change worsens the occurrence and severity of natural disasters, which in turn disrupts infrastructure, agriculture, and overall productivity. These disruptions lead to economic losses and put a strain on both national and international resources. Additionally, the financial burden of implementing climate adaptation and mitigation strategies further amplifies these challenges.
Developing nations, in particular, face significant challenges in financing these initiatives, which can hinder their economic growth and progress. The implementation of economic instruments such as carbon pricing and emissions trading schemes introduces new market dynamics that reshape the flow of international trade. These instruments aim to reduce greenhouse gas emissions by assigning a value to carbon emissions, thereby incentivizing cleaner practices. However, their effectiveness depends on global cooperation and the harmonization of policies across nations. More Eurasia Review
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Malaysia's FGV petitions US CBP to modify the Withhold Release Order
FGV Holdings Bhd said it has formally petitioned the US Customs and Border Protection (CBP) to modify the Withhold Release Order (WRO) placed on its palm oil and palm oil products since September 2020.
The submission, made on June 30 2024, is the culmination of efforts by FGV to improve labor rights and worker welfare across its operations.
To address the concerns that led to the WRO, FGV said it has implemented a comprehensive remediation plan aimed at closing identified gaps in its labor practices and aligning its operations with internationally recognized ethical labor standards.
The company appointed LRQA, formerly known as ELEVATE, as an independent third-party assessor to evaluate its palm oil operations against the International Labour Organization (ILO) Indicators of Forced Labour.
Additionally, FGV said it has sought the expertise of Crowell & Moring as legal counsel to ensure compliance with US and international legal requirements.
Central to FGV’s remediation efforts was the reimbursement of recruitment fees to its migrant workers.
The company said it has allocated RM112 million for this purpose, of which RM85.29 million has already been spent to reimburse 22,600 workers.
FGV also strengthened its procedures for the recruitment of migrant workers by enhancing due diligence measures in the appointment of recruitment agencies.
Beyond financial compensation, FGV stated that it has invested heavily in infrastructure and housing improvements.
Between 2018 and 2023, the company spent RM487 million to upgrade and construct new housing facilities and to enhance internet connectivity in remote areas.
An additional RM605 million is earmarked for further improvements from 2024 to 2026, including the installation of internet satellite facilities to ensure workers have access to the internet at remote estates. More The Malaysian Reserve
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Palm Oil Market size is set to grow by USD 57 billion from 2024-2028, Increasing consumer awareness regarding health benefits of palm oil to boost the market growth, Technavio
NEW YORK, July 5, 2024 /PRNewswire/ -- The global palm oil market size is estimated to grow by USD 57 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 10.07% during the forecast period. Increasing consumer awareness regarding health benefits of palm oil is driving market growth, with a trend towards new growth avenue for palm oil in biodiesel. However, concerns about deforestation and plant diversity losses poses a challenge. Key market players include Agarwal Industries P Ltd., Alami Commodities Sdn Bhd, Alfa Laval AB, Archer Daniels Midland Co., Asian Agri, Best Industry Group, Cargill Inc., Charleston Holdings Pte Ltd., Crowe LLP, Godrej and Boyce Manufacturing Co. Ltd., Gujarat Ambuja Exports Ltd., IOI Corp. Berhad, Kuala Lumpur Kepong Berhad, Musim Mas Group, Nisshin OilliO Group Ltd., Oil Palm India Ltd., Patanjali Ayurved Ltd., Sime Darby Plantation Berhad, Sinar Mas, and Univanich Palm Oil Public Co. Ltd..
Palm oil is a significant contributor to the biodiesel market, accounting for approximately 10% of global production. This vegetable oil, derived from the fruit of the oil palm tree, is an efficient and cost-effective first-generation feedstock. Compared to other oilseeds, oil palm yields more oil per hectare annually, making it an attractive choice for biodiesel production. With around 70 million tons of palm oil produced annually, its adoption in the biodiesel industry is on the rise. As the world shifts towards more sustainable and cleaner fuel options, the demand for biodiesel is increasing. Palm oil's high yield and cost-effectiveness position it well to meet this demand, driving growth in the palm oil market during the forecast period.
Palm oil, derived from palm fruits, is a popular vegetable oil used in various industries. It's a key ingredient in instant noodles, cereals, candles, shampoos, and detergents. Crude palm oil and RBD (refined, bleached, and deodorized) palm oil are the main types, with palm kernel oil used for biofuel production. Sustainable and organic production methods are trending to address concerns over agrochemicals, pesticides, and deforestation. Palm oil's saturated fat content and potential link to heart disease have raised health concerns. Biofuels, such as biodiesel, are growing segments. Unrefined palm oil and fractionated palm oil have their uses, with the latter in edible oil and biofuels. Imports of palm oil, including from countries like Indonesia and Malaysia, are significant. The market includes both conventional and organic segments. Agrochemicals, pesticides, insecticides, and surfactants are used in palm oil production. Mesocarp, the edible part of the fruit, is extracted for oil. Sustainable farming practices and the use of feedstock like soybean oil are important for reducing the environmental impact. Mineral oil and transfats are alternatives, but their production and use have drawbacks. Rapeseed oil is a competitor, but palm oil's versatility gives it a competitive edge. More PR Newswire
EU resists calls to delay deforestation law, letter shows
BRUSSELS (Reuters) – The European Union has resisted calls from some industries and countries to delay its flagship policy to fight deforestation, a letter seen by Reuters on Friday showed.
The deforestation law will, from Dec. 30, require companies selling soy, beef, coffee, palm oil and other products in the 27-nation bloc to prove their supply chains do not contribute to the destruction of forests. Equally, EU companies will be banned from exporting products cultivated on deforested land.
The U.S. government and industry groups including the Confederation of European Paper Industries (CEPI) want the policy delayed, citing complaints including that the EU’s systems for managing the ban are not yet finished.
In a letter to CEPI members, dated July 2, European Environment Commissioner Virginijus Sinkevicius acknowledged such concerns but gave no indication that Brussels was considering a delay.
“We are hearing feedback from some stakeholders that preparation for implementation may be challenging. However, we also see encouraging signs in many sectors and countries working to align with EUDR (EU Deforestation Regulation) requirements,” said the letter.
Sinkevicius said work on an online system to let companies submit their due diligence statements was underway.
Asked about the industry’s concerns, CEPI Director General Jori Ringman told Reuters it was unfeasible for book publishers, for example, to trace the origins of their paper back to potentially thousands of forest plots.
“Neither the guidance nor the EUDR information system are ready,” Ringman added, referring to the system that will allow companies to submit their due diligence statements. More Swissinfo
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The Intricate Dance: Climate Change, Economics, And The Palm Oil Conundrum – OpEd
The relationship between climate change, international economics, and the global dynamics of palm oil production presents a wide range of complex challenges and opportunities. It is crucial to thoroughly examine the multifaceted consequences of climate change on the global economy to fully understand its economic impact. Climate change worsens the occurrence and severity of natural disasters, which in turn disrupts infrastructure, agriculture, and overall productivity. These disruptions lead to economic losses and put a strain on both national and international resources. Additionally, the financial burden of implementing climate adaptation and mitigation strategies further amplifies these challenges.
Developing nations, in particular, face significant challenges in financing these initiatives, which can hinder their economic growth and progress. The implementation of economic instruments such as carbon pricing and emissions trading schemes introduces new market dynamics that reshape the flow of international trade. These instruments aim to reduce greenhouse gas emissions by assigning a value to carbon emissions, thereby incentivizing cleaner practices. However, their effectiveness depends on global cooperation and the harmonization of policies across nations. More Eurasia Review
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Malaysia's FGV petitions US CBP to modify the Withhold Release Order
FGV Holdings Bhd said it has formally petitioned the US Customs and Border Protection (CBP) to modify the Withhold Release Order (WRO) placed on its palm oil and palm oil products since September 2020.
The submission, made on June 30 2024, is the culmination of efforts by FGV to improve labor rights and worker welfare across its operations.
To address the concerns that led to the WRO, FGV said it has implemented a comprehensive remediation plan aimed at closing identified gaps in its labor practices and aligning its operations with internationally recognized ethical labor standards.
The company appointed LRQA, formerly known as ELEVATE, as an independent third-party assessor to evaluate its palm oil operations against the International Labour Organization (ILO) Indicators of Forced Labour.
Additionally, FGV said it has sought the expertise of Crowell & Moring as legal counsel to ensure compliance with US and international legal requirements.
Central to FGV’s remediation efforts was the reimbursement of recruitment fees to its migrant workers.
The company said it has allocated RM112 million for this purpose, of which RM85.29 million has already been spent to reimburse 22,600 workers.
FGV also strengthened its procedures for the recruitment of migrant workers by enhancing due diligence measures in the appointment of recruitment agencies.
Beyond financial compensation, FGV stated that it has invested heavily in infrastructure and housing improvements.
Between 2018 and 2023, the company spent RM487 million to upgrade and construct new housing facilities and to enhance internet connectivity in remote areas.
An additional RM605 million is earmarked for further improvements from 2024 to 2026, including the installation of internet satellite facilities to ensure workers have access to the internet at remote estates. More The Malaysian Reserve
--------
Palm Oil Market size is set to grow by USD 57 billion from 2024-2028, Increasing consumer awareness regarding health benefits of palm oil to boost the market growth, Technavio
NEW YORK, July 5, 2024 /PRNewswire/ -- The global palm oil market size is estimated to grow by USD 57 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 10.07% during the forecast period. Increasing consumer awareness regarding health benefits of palm oil is driving market growth, with a trend towards new growth avenue for palm oil in biodiesel. However, concerns about deforestation and plant diversity losses poses a challenge. Key market players include Agarwal Industries P Ltd., Alami Commodities Sdn Bhd, Alfa Laval AB, Archer Daniels Midland Co., Asian Agri, Best Industry Group, Cargill Inc., Charleston Holdings Pte Ltd., Crowe LLP, Godrej and Boyce Manufacturing Co. Ltd., Gujarat Ambuja Exports Ltd., IOI Corp. Berhad, Kuala Lumpur Kepong Berhad, Musim Mas Group, Nisshin OilliO Group Ltd., Oil Palm India Ltd., Patanjali Ayurved Ltd., Sime Darby Plantation Berhad, Sinar Mas, and Univanich Palm Oil Public Co. Ltd..
Palm oil is a significant contributor to the biodiesel market, accounting for approximately 10% of global production. This vegetable oil, derived from the fruit of the oil palm tree, is an efficient and cost-effective first-generation feedstock. Compared to other oilseeds, oil palm yields more oil per hectare annually, making it an attractive choice for biodiesel production. With around 70 million tons of palm oil produced annually, its adoption in the biodiesel industry is on the rise. As the world shifts towards more sustainable and cleaner fuel options, the demand for biodiesel is increasing. Palm oil's high yield and cost-effectiveness position it well to meet this demand, driving growth in the palm oil market during the forecast period.
Palm oil, derived from palm fruits, is a popular vegetable oil used in various industries. It's a key ingredient in instant noodles, cereals, candles, shampoos, and detergents. Crude palm oil and RBD (refined, bleached, and deodorized) palm oil are the main types, with palm kernel oil used for biofuel production. Sustainable and organic production methods are trending to address concerns over agrochemicals, pesticides, and deforestation. Palm oil's saturated fat content and potential link to heart disease have raised health concerns. Biofuels, such as biodiesel, are growing segments. Unrefined palm oil and fractionated palm oil have their uses, with the latter in edible oil and biofuels. Imports of palm oil, including from countries like Indonesia and Malaysia, are significant. The market includes both conventional and organic segments. Agrochemicals, pesticides, insecticides, and surfactants are used in palm oil production. Mesocarp, the edible part of the fruit, is extracted for oil. Sustainable farming practices and the use of feedstock like soybean oil are important for reducing the environmental impact. Mineral oil and transfats are alternatives, but their production and use have drawbacks. Rapeseed oil is a competitor, but palm oil's versatility gives it a competitive edge. More PR Newswire
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July 05, 2024
A study finds Indonesia’s deforested land is often left idle. But some see potential in that
JAKARTA, Indonesia (AP) — Years after being felled, vast swathes of Indonesia’s old-growth forests are left sitting idle. And when the land is finally put to use, it’s most often for new palm oil plantations, according to a study published in the Proceedings of the National Academy of Sciences.
But some experts — including the study’s authors — are hoping for a silver lining: The opportunity for Indonesia to expand its agricultural, palm, pulp and other commodities without having to cut down more trees, thus meeting increasing demand from companies and governments for products that didn’t depend on deforestation.
“There’s maybe some hope that if the country can focus on these idle, non-forest lands ... it could potentially drop deforestation to zero, and still have a lot of opportunities for economic development,” said Diana Parker, a postdoctoral associate in the University of Maryland’s Department of Geographical Sciences and the lead author of the study. More AP
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EU Not Using Palm Oil Biodiesel? Will Its Use Continue to Decrease? Check This Out
Use of Palm Oil as a Biodiesel Raw Material in the European Union is Declining (Myth 2-08)
The development of renewable energy in the European Union is a form of commitment to the Kyoto Protocol agreement regarding the reduction of Greenhouse Gas (GHG) emissions. The policy is stated in Directive 2009/28/EC (RED I) which was adopted since April 23, 2009 (PASPI Monitor, 2019 c ; Suharto et al., 2019). The implementation of this policy has an impact on increasing production and promoting the use of sustainable energy based on plants ( crop-based biofuel ) or what is called first generation sustainable energy ( first generation biofuel ).
Although the use of palm oil as a biodiesel feedstock is still controversial in the European Union, the facts show that the European Union biodiesel industry still uses palm oil as a biodiesel feedstock. In fact, the use of palm oil for biodiesel has increased from 980 thousand tons (10 percent) in 2011 to 2.6 million tons (18 percent) in 2021 (Figure 7).
An interesting phenomenon is the presence of palm oil as a raw material for EU biodiesel can reduce the burden of rapeseed oil. Rapeseed oil is the main vegetable oil produced by the EU with the main use as a food ingredient. If rapeseed oil is used for biodiesel, the EU will face a food-fuel trade-off problem. The availability of palm oil in the EU market can be an alternative raw material for EU biodiesel so that the use of rapeseed oil for biodiesel can be reduced. This is confirmed by the decrease in the use of rapeseed oil in the EU biodiesel industry, namely from 6.8 million tons (67 percent) to 5.8 million tons (39 percent) during the period 2011-2021.
The choice of EU biodiesel industry players who increasingly use palm oil as a raw material for biodiesel is a personal choice. In terms of price and supply, the EU biodiesel industry continues to maintain the use of palm oil as a raw material. GAPKI
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Germany’s UFOP warns current rapeseed output ‘insufficient’ to meet demand
17 hours ago | Tim Worledge
Germany’s vegetable oil trade group UFOP warned that current global rapeseed production forecasts suggest there will not be enough of the oilseed available to meet demand and pushed for more planting in 2025 in a press release published on Thursday July 4. Agricensus
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How EU do-goodery risks harming Africa’s small farmers
New forest-mapping rules may shut African crops out of European markets
Sacks of coffee are piled high in an Ethiopian warehouse, dwarfing the workers who scurry between them. “Our farmers’ lives are dependent on this coffee,” says Dejene Dadi Dika, the general manager of the Oromia Coffee Farmers Co-operative Union, which has more than half a million member farms. He is worried about a new eu deforestation regulation, which requires that every bean sold in Europe be traced to the field it came from. It costs the co-op about $4 to geo-locate each farm, and he wonders who will pay.
With the stroke of a pen, the eu is rewriting trading practices the world over. It wants firms bringing cocoa, coffee, rubber, soya, palm oil, wood or cattle products into Europe to prove that those commodities did not come from land which was deforested after 2020. An importer breaking the rules can be fined up to 4% of its turnover in the eu. Millions of small farms will need to be geo-located and supply chains redesigned. It is a race against time before the rule kicks in at the end of this year. More The Economist
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Bridging the Divide: The EU’s Global Gateway Amidst Southeast Asian Skepticism
On May 2024, ASEAN and the European Union launched the ASEAN-EU Blue Book 2024-2025, unveiling their future roadmap. The Blue Book, a collaborative effort by ASEAN Secretary General Dr. Kao Kim Hourn and EU Ambassador Sujiro Seam, marks a historic milestone in their nearly 50-year collaboration. Although it has played a crucial role in the history of ASEAN-EU relations, this year’s edition breaks new ground. The EU’s ambitious “Global Gateway” initiative serves as its foundation, indicating a future of deeper strategic engagement between the two regions.
The EU first introduced its ambitious Global Gateway in 2021, spanning the globe from 2021 to 2027. This initiative aims to revolutionize the global infrastructure landscape by investing €300 billion in digital, energy, health, education, research, and transportation projects. Guided by the principles of social responsibility and environmental stewardship, this grand plan aligns with the EU’s core values and standards.
For Southeast Asia, Team Europe has pledged a staggering €10 billion by 2027 to support green and digital connectivity initiatives, making the Global Gateway a cornerstone of the ASEAN-EU Plan of Action (2023–2027). The EU, already ASEAN’s third-largest investor and second trading partner beside the US and China, sees this as a chance to deepen ties. Previously, the EU had maintained its position as the fourth potential partner by 2024. The recent activity of the EU-ASEAN Comprehensive Air Transport Agreement in 2021 shows the history of their successful collaboration. These facts underscore the significance of global cooperation in the region.
While EU-ASEAN optimism prevails, the Southeast Asian public is less enthusiastic. According to the ISEAS-Yusof Ishak Institute survey 2024, trust in the EU is at an all-time low as a result of previous disputes with ASEAN member states over governance, human rights, and palm oil. The question is, How will the EU close the divide between the global gateway initiative and the skepticism of Southeast Asia?
The Dragon, the Eagle, and the Union
The EU’s Global Gateway in Southeast Asia has caught the attention of many observers. Despite their admirable objectives of enhancing infrastructure and enhancing lives, the EU’s Global Gateway in Southeast Asia coincides with escalating tensions between China’s Belt and Road Initiative (BRI) and the US’s renewed emphasis on the Indo-Pacific through the Indo-Pacific Economic Framework (IPEF). In the midst of the ongoing South China Sea dispute, the Indo-Pacific region is once again the focal point of a complex geopolitical struggle.
As an actor that holds one of the most trade and investment opportunities in the region, the EU can’t afford to be a bystander in the Indo-Pacific competition. Southeast Asia, at the region’s heart, is the key target. In 2021, the EU unveiled its Indo-Pacific strategy, boosting cooperation with ASEAN member states to navigate the evolving economic and security landscape and respond to its dynamic situation. The primary focus is on Southeast Asia, which is located at the center of the region. In 2021, the EU introduced its Indo-Pacific strategy to promote collaboration with ASEAN to adapt to the changing economic and security landscape. More The Geopolitics
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EU's Christian Democrats want to develop the Green Deal into a Green Growth Deal
The largest political group in the European Parliament (EPP, Christian Democrats) wants to develop the European Union's Green Deal into a Green Growth Deal. This is a key decision taken by the group at a closed meeting in preparation for the new legislative period. The group is committed to the European Union's climate targets for 2030 and the climate neutrality target for 2050, but wants to achieve these targets with less bureaucracy and greater dialogue with all stakeholders. Openness to technology is also important to the group. After intensive discussions, it was made clear in the paper that the goal of only allowing climate-neutral cars to be registered as of 2035 should remain, but that the existing ban on the combustion engine should be replaced by a technology-neutral approach, so that climate-neutral fuels such as e-fuels should also be permitted and new cars that only run on these fuels can also be registered after 2035.
The EPP is committed to emissions trading as a central, market-based instrument of European climate policy, but wants to develop it further by also including negative emissions. "Some companies are already extracting CO2 from the atmosphere and using it to produce building materials, for example. However, we do not have sufficient incentives for these technologies in the European Union. Climate scientists say that we urgently need them in the future. That's why we need to create incentives now so that they are available on a large scale and at lower cost when needed. At the same time, we are offering industry, which will no longer be able to buy certificates after 2039 under the existing regulation, an initial opportunity to compensate for any residual emissions. This is extremely important because otherwise energy-intensive companies, such as those in the chemical industry, would not be able to realise their investments in Europe." A particularly important point for the group is that support for citizens and businesses, especially small and medium-sized enterprises, farmers and fisheries, should be improved during the transformation. "Many Member States use the revenue from emissions trading for their own political priorities. It must be clear that 100% of the money must be earmarked for climate protection measures and social measures. Especially people who work hard but still earn below average need targeted support in the transition to climate-neutral products," continued the MEP. More Peter Liese
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Malaysian palm oil industry will lose global competitiveness if windfall tax is not revised
BANGI: The competitiveness of Malaysia’s palm oil industry is at stake if the windfall tax is not revised, said Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani.
“If we don’t revise this windfall tax, it will make our palm oil products, which compete with other countries, such as Indonesia – the number one palm oil producer in the world, and we are number two – less competitive,” he told reporters after officiating the 30th Malaysian Palm Oil Board Transfer of Technology Seminar and Exhibition today.
Johari noted that when the government initially imposed the windfall tax, the cost of producing one tonne of palm oil was RM1,800.
“But today, the cost has increased significantly. It has reached almost RM3,000. For large companies, the cost is around RM2,800. For smaller companies, it might be up to RM3,200. So on average, about RM3,000,” he explained.
Johari added that revising the tax could indirectly encourage replanting, making Malaysia’s palm oil more competitive and attracting more investment in the available 5.7 million hectares of land for replanting and increasing yield. More The Sun
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Kenya, Uganda increase import tax for crude palm oil to protect local industries
Manufacturers of edible oils face higher costs for importing crude palm oil after Kenya and Uganda increased the duty by 10 percent.
In this year's review of Common External Tariffs (CET), the two East African nations agreed to raise the duty from zero percent to 10 percent.
Kenya is championing local production of edible oil, pushing for the cultivation of sunflower and palm oil to cut reliance on imports.
In Uganda, farmers have been planting palm for years, and the government is set to protect them from cheap imports while encouraging local production. More All Africa
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A study finds Indonesia’s deforested land is often left idle. But some see potential in that
JAKARTA, Indonesia (AP) — Years after being felled, vast swathes of Indonesia’s old-growth forests are left sitting idle. And when the land is finally put to use, it’s most often for new palm oil plantations, according to a study published in the Proceedings of the National Academy of Sciences.
But some experts — including the study’s authors — are hoping for a silver lining: The opportunity for Indonesia to expand its agricultural, palm, pulp and other commodities without having to cut down more trees, thus meeting increasing demand from companies and governments for products that didn’t depend on deforestation.
“There’s maybe some hope that if the country can focus on these idle, non-forest lands ... it could potentially drop deforestation to zero, and still have a lot of opportunities for economic development,” said Diana Parker, a postdoctoral associate in the University of Maryland’s Department of Geographical Sciences and the lead author of the study. More AP
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EU Not Using Palm Oil Biodiesel? Will Its Use Continue to Decrease? Check This Out
Use of Palm Oil as a Biodiesel Raw Material in the European Union is Declining (Myth 2-08)
The development of renewable energy in the European Union is a form of commitment to the Kyoto Protocol agreement regarding the reduction of Greenhouse Gas (GHG) emissions. The policy is stated in Directive 2009/28/EC (RED I) which was adopted since April 23, 2009 (PASPI Monitor, 2019 c ; Suharto et al., 2019). The implementation of this policy has an impact on increasing production and promoting the use of sustainable energy based on plants ( crop-based biofuel ) or what is called first generation sustainable energy ( first generation biofuel ).
Although the use of palm oil as a biodiesel feedstock is still controversial in the European Union, the facts show that the European Union biodiesel industry still uses palm oil as a biodiesel feedstock. In fact, the use of palm oil for biodiesel has increased from 980 thousand tons (10 percent) in 2011 to 2.6 million tons (18 percent) in 2021 (Figure 7).
An interesting phenomenon is the presence of palm oil as a raw material for EU biodiesel can reduce the burden of rapeseed oil. Rapeseed oil is the main vegetable oil produced by the EU with the main use as a food ingredient. If rapeseed oil is used for biodiesel, the EU will face a food-fuel trade-off problem. The availability of palm oil in the EU market can be an alternative raw material for EU biodiesel so that the use of rapeseed oil for biodiesel can be reduced. This is confirmed by the decrease in the use of rapeseed oil in the EU biodiesel industry, namely from 6.8 million tons (67 percent) to 5.8 million tons (39 percent) during the period 2011-2021.
The choice of EU biodiesel industry players who increasingly use palm oil as a raw material for biodiesel is a personal choice. In terms of price and supply, the EU biodiesel industry continues to maintain the use of palm oil as a raw material. GAPKI
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Germany’s UFOP warns current rapeseed output ‘insufficient’ to meet demand
17 hours ago | Tim Worledge
Germany’s vegetable oil trade group UFOP warned that current global rapeseed production forecasts suggest there will not be enough of the oilseed available to meet demand and pushed for more planting in 2025 in a press release published on Thursday July 4. Agricensus
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How EU do-goodery risks harming Africa’s small farmers
New forest-mapping rules may shut African crops out of European markets
Sacks of coffee are piled high in an Ethiopian warehouse, dwarfing the workers who scurry between them. “Our farmers’ lives are dependent on this coffee,” says Dejene Dadi Dika, the general manager of the Oromia Coffee Farmers Co-operative Union, which has more than half a million member farms. He is worried about a new eu deforestation regulation, which requires that every bean sold in Europe be traced to the field it came from. It costs the co-op about $4 to geo-locate each farm, and he wonders who will pay.
With the stroke of a pen, the eu is rewriting trading practices the world over. It wants firms bringing cocoa, coffee, rubber, soya, palm oil, wood or cattle products into Europe to prove that those commodities did not come from land which was deforested after 2020. An importer breaking the rules can be fined up to 4% of its turnover in the eu. Millions of small farms will need to be geo-located and supply chains redesigned. It is a race against time before the rule kicks in at the end of this year. More The Economist
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Bridging the Divide: The EU’s Global Gateway Amidst Southeast Asian Skepticism
On May 2024, ASEAN and the European Union launched the ASEAN-EU Blue Book 2024-2025, unveiling their future roadmap. The Blue Book, a collaborative effort by ASEAN Secretary General Dr. Kao Kim Hourn and EU Ambassador Sujiro Seam, marks a historic milestone in their nearly 50-year collaboration. Although it has played a crucial role in the history of ASEAN-EU relations, this year’s edition breaks new ground. The EU’s ambitious “Global Gateway” initiative serves as its foundation, indicating a future of deeper strategic engagement between the two regions.
The EU first introduced its ambitious Global Gateway in 2021, spanning the globe from 2021 to 2027. This initiative aims to revolutionize the global infrastructure landscape by investing €300 billion in digital, energy, health, education, research, and transportation projects. Guided by the principles of social responsibility and environmental stewardship, this grand plan aligns with the EU’s core values and standards.
For Southeast Asia, Team Europe has pledged a staggering €10 billion by 2027 to support green and digital connectivity initiatives, making the Global Gateway a cornerstone of the ASEAN-EU Plan of Action (2023–2027). The EU, already ASEAN’s third-largest investor and second trading partner beside the US and China, sees this as a chance to deepen ties. Previously, the EU had maintained its position as the fourth potential partner by 2024. The recent activity of the EU-ASEAN Comprehensive Air Transport Agreement in 2021 shows the history of their successful collaboration. These facts underscore the significance of global cooperation in the region.
While EU-ASEAN optimism prevails, the Southeast Asian public is less enthusiastic. According to the ISEAS-Yusof Ishak Institute survey 2024, trust in the EU is at an all-time low as a result of previous disputes with ASEAN member states over governance, human rights, and palm oil. The question is, How will the EU close the divide between the global gateway initiative and the skepticism of Southeast Asia?
The Dragon, the Eagle, and the Union
The EU’s Global Gateway in Southeast Asia has caught the attention of many observers. Despite their admirable objectives of enhancing infrastructure and enhancing lives, the EU’s Global Gateway in Southeast Asia coincides with escalating tensions between China’s Belt and Road Initiative (BRI) and the US’s renewed emphasis on the Indo-Pacific through the Indo-Pacific Economic Framework (IPEF). In the midst of the ongoing South China Sea dispute, the Indo-Pacific region is once again the focal point of a complex geopolitical struggle.
As an actor that holds one of the most trade and investment opportunities in the region, the EU can’t afford to be a bystander in the Indo-Pacific competition. Southeast Asia, at the region’s heart, is the key target. In 2021, the EU unveiled its Indo-Pacific strategy, boosting cooperation with ASEAN member states to navigate the evolving economic and security landscape and respond to its dynamic situation. The primary focus is on Southeast Asia, which is located at the center of the region. In 2021, the EU introduced its Indo-Pacific strategy to promote collaboration with ASEAN to adapt to the changing economic and security landscape. More The Geopolitics
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EU's Christian Democrats want to develop the Green Deal into a Green Growth Deal
The largest political group in the European Parliament (EPP, Christian Democrats) wants to develop the European Union's Green Deal into a Green Growth Deal. This is a key decision taken by the group at a closed meeting in preparation for the new legislative period. The group is committed to the European Union's climate targets for 2030 and the climate neutrality target for 2050, but wants to achieve these targets with less bureaucracy and greater dialogue with all stakeholders. Openness to technology is also important to the group. After intensive discussions, it was made clear in the paper that the goal of only allowing climate-neutral cars to be registered as of 2035 should remain, but that the existing ban on the combustion engine should be replaced by a technology-neutral approach, so that climate-neutral fuels such as e-fuels should also be permitted and new cars that only run on these fuels can also be registered after 2035.
The EPP is committed to emissions trading as a central, market-based instrument of European climate policy, but wants to develop it further by also including negative emissions. "Some companies are already extracting CO2 from the atmosphere and using it to produce building materials, for example. However, we do not have sufficient incentives for these technologies in the European Union. Climate scientists say that we urgently need them in the future. That's why we need to create incentives now so that they are available on a large scale and at lower cost when needed. At the same time, we are offering industry, which will no longer be able to buy certificates after 2039 under the existing regulation, an initial opportunity to compensate for any residual emissions. This is extremely important because otherwise energy-intensive companies, such as those in the chemical industry, would not be able to realise their investments in Europe." A particularly important point for the group is that support for citizens and businesses, especially small and medium-sized enterprises, farmers and fisheries, should be improved during the transformation. "Many Member States use the revenue from emissions trading for their own political priorities. It must be clear that 100% of the money must be earmarked for climate protection measures and social measures. Especially people who work hard but still earn below average need targeted support in the transition to climate-neutral products," continued the MEP. More Peter Liese
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Malaysian palm oil industry will lose global competitiveness if windfall tax is not revised
BANGI: The competitiveness of Malaysia’s palm oil industry is at stake if the windfall tax is not revised, said Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani.
“If we don’t revise this windfall tax, it will make our palm oil products, which compete with other countries, such as Indonesia – the number one palm oil producer in the world, and we are number two – less competitive,” he told reporters after officiating the 30th Malaysian Palm Oil Board Transfer of Technology Seminar and Exhibition today.
Johari noted that when the government initially imposed the windfall tax, the cost of producing one tonne of palm oil was RM1,800.
“But today, the cost has increased significantly. It has reached almost RM3,000. For large companies, the cost is around RM2,800. For smaller companies, it might be up to RM3,200. So on average, about RM3,000,” he explained.
Johari added that revising the tax could indirectly encourage replanting, making Malaysia’s palm oil more competitive and attracting more investment in the available 5.7 million hectares of land for replanting and increasing yield. More The Sun
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Kenya, Uganda increase import tax for crude palm oil to protect local industries
Manufacturers of edible oils face higher costs for importing crude palm oil after Kenya and Uganda increased the duty by 10 percent.
In this year's review of Common External Tariffs (CET), the two East African nations agreed to raise the duty from zero percent to 10 percent.
Kenya is championing local production of edible oil, pushing for the cultivation of sunflower and palm oil to cut reliance on imports.
In Uganda, farmers have been planting palm for years, and the government is set to protect them from cheap imports while encouraging local production. More All Africa
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July 04, 2024
Analyses of MSPO to EUDR shows readiness, not 'weakness' or shortcomings
Two assessments have been conducted analysing in detail how closely the Malaysian Sustainable Palm Oil (MSPO) standard is able to match the requirements of the EU’s Deforestation Regulation (EUDR) – and how MSPO can therefore be used as a tool for companies to comply with the EUDR.
The analyses were undertaken separately, one by the independent certification expert and auditor Pierre Bois d’Enghien from Belgium, and the other by the European Forest Institute (EFI), an EU-funded body focused on environmental and agricultural sustainability.
In May, a Webinar was hosted by the Malaysian Palm Oil Council (MPOC) to present and discuss these two assessments. The Webinar featured experts from the European Forest Institute (EFI), the Malaysian Sustainable Palm Oil (MSPO), and Pierre Bois d’Enghien, author of the MSPO-EUDR Assessment.
Regrettably, some of the reporting following the publication of the Webinar and the Assessments, has been wide of the mark. EFI’s presentation, which can be viewed online here, highlighted some ‘information gaps’ where MSPO and EUDR did not fully align: the message was interpreted by some in the media as portraying ‘weakness’ or ‘shortcomings’ in the MSPO.
This is a complete misconception, and a highly immature approach to assessing MSPO against EUDR. No standard is perfect, anywhere in the world or at any time in history. MSPO is no different. Areas for improvement, progress, development will always exist. The Assessments conducted by Pierre Bois d’Enghien and by EFI are part of the process of continuous improvement of the MSPO standard. This commitment to mature and rigorous analysis means that MSPO can continue to improve.
In fact, the small number of potential improvements and alignment for MSPO, related to EUDR, are the same issues identified by others in the palm oil supply chain. A recent letter from FEDIOL and other highlighted several areas where alignment with EUDR is a problem across European-based companies and associations as well as in producing countries such as Malaysia. This demonstrates there is in reality no shortcoming or weakness of MSPO – rather, there are deep and broad challenges around EUDR that affect businesses across supply chains and across continents.
Pejorative language such as ‘information gaps’ and ‘shortcomings’ is neither accurate nor helpful. Cooperation with expert assessments is a positive effort to fine-tune the MSPO standard, and this should be welcomed, not used to undermine Malaysia.
In practice, both the assessments by EFI and by Pierre Bois d’Enghien came to the same conclusion: MSPO is a world-class standard whose the vast majority of areas are fully compliant and aligned with EUDR requirements.
Pierre Bois d’Enghien explained that “EUDR is very difficult and costly. Compliance will only be achieved if the EU Commission is willing to work with – rather than just dictate to – countries in the developing world. This should start with recognising and rewarding the positive efforts of our trading partners, including the MSPO certification standard in Malaysia. Malaysia is well-positioned because of MSPO. For many other countries, what is needed is a delay in EUDR implementation, or increased flexibility from the EU authorities.”
The importance of MSPO was also highlighted by MPOC Chief Executive Officer, Belvinder Kaur Sron, during the MPOC 3.0 Webinar on the subject. She said: “In some areas, such as the cut-off date for deforestation, MSPO is actually stricter and more rigorous than the EU Regulation. More cooperation is now needed between the European Union and the Malaysian palm oil community, to identify how MSPO can be accepted and recognised by the EU.”
The next step now is for the EU authorities to make progress in accepting MSPO. The thorough and independent approach taken by Malaysia to assessing and improving the standard – including the two recent Assessments – is an important milestone that should be welcomed by the EU. It is now a question for EU leaders to find the right structure, either under EUDR or a similar mechanism, for recognizing MSPO. In doing so, the EU will improve trade facilitation, guarantee the sustainability of palm oil in the EU market, and incentivize other countries to follow Malaysia’s example of prioritizing sustainability and zero deforestation.
The decision by EU authorities does not take place in a vacuum. It is important that all stakeholders and participants in this debate use responsible language when communicating about the fundings of assessments. Giving the impression of ‘shortcomings’ or ‘gaps’ is not constructive; rather, the discussion should be focus on Malaysia’s impressive commitment and determination to improve MSPO, and lead the conversation on palm oil sustainability. My Palm Oil Policy
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Trase: UK unprotected from high levels of deforestation exposure
Delivering legislation to tackle deforestation should be a priority for the newly elected British government. Trase research shows the UK’s demand for beef, cocoa and palm oil continues to drive high levels of forest loss and land conversion in Brazil, Côte d’Ivoire and Indonesia.
UK legislation establishing rules to prohibit the importation of commodities grown on illegally deforested land was not agreed by Parliament before it was dissolved ahead of the UK general election on 4 July. The UK government had promised “world-leading” action on deforestation under its 2021 Environment Act. In contrast, the EU’s deforestation regulation comes into effect at the end of this year. New Trase research shows how the lack of legislation leaves the UK exposed to high levels of deforestation.
The UK’s average deforestation exposure in 2019–2021 was 15,200 hectares. In comparison to EU27 countries , the UK ranks sixth between France and Belgium. Over the same period, France’s deforestation exposure was 15,900 ha, Italy’s 17,700 ha and Germany’s 22,800 ha.
The UK’s total exposure decreased by 32% between 2014 and 2021. The biggest change was for oil palm, which saw a 63.8% decrease in deforestation exposure over the period. Trase’s analysis of the EU27 showed that the bloc experienced a similar reduction in total exposure (35.5%). These results are both primarily due to a fall in deforestation linked to oil palm production in Indonesia . However, the latest data suggests that deforestation rates are creeping up again, which is not yet reflected in Trase’s analysis for the UK or the EU27.
There was also a substantial drop in deforestation exposure from imports of soy and cattle products. However, the loss of Brazil’s Cerrado due to the expansion of soy and cattle production is increasing, indicating the need for urgent action. More SEI
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Another Trade War? Escalating Friction in Indonesia-EU Relations
The discord between Indonesia and the EU over nickel and deforestation issues reflect broader challenges facing the global order.
Amid the escalating rivalry between the United States and China, the geopolitical landscape is witnessing the emergence of another contentious relationship, this time involving Indonesia, a rising regional power in Southeast Asia, and the European Union (EU).
Trade relations between Indonesia and the EU have increasingly deteriorated in recent years, particularly in sectors such as raw nickel and palm oil. One significant issue is Indonesia’s imposition of an export ban on raw nickel and other mineral ores. Additionally, the EU has implemented strict deforestation regulations affecting Indonesia’s export of palm oil and other agricultural products. While these bilateral tensions undoubtedly impact the associated industrial sectors, they more importantly underscore the evolving dynamism of global fragmentation and the further shift toward a multipolar world order. More The Diplomat
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Edible oils firms plead for freezing of import tax hike
Edible Oil Manufacturers Association of Kenya appealed for the stay on execution of the duty for the sake of Kenyans
The levy that came into effect on July 1, they claimed, will see rise in the cost of living in the country as the price hike will have ripple effect on key basic household commodities.
This is because the prices of any product that requires oil will likely go up.
In a dispatch to the newsrooms, the players under the Edible Oil Manufacturers Association of Kenya, appealed for the stay on execution of the duty, for the sake of Kenyans.
“With cooking oil also being an important component in production of essential everyday products like soap, bread, mandazi, chapatis and margarine, the prices of these essential household products will also go up and further push up the cost of living for millions of struggling Kenyans,” the manufacturers said in a statement.
The move they noted, will have a devastating effect on the majority low-income earners. The Star KE
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Sabah’s China trade at RM10.7 billion
KOTA KINABALU: Chief Minister Datuk Seri Hajiji Noor said China is Sabah’s largest trading partner, chalking a bilateral trade value totalling RM10.7 billion last year.
“In 2023, Sabah’s total trade was valued at RM41.463 billion, with main exports comprising palm oil at RM15.291 billion, liquefied natural gas (LNG) at RM5.051 billion, crude petroleum at RM2.548 billion, palm kernel oil at RM1.289 billion and palm oil-based oleochemicals at RM1.123 billion.
“Of this, bilateral trade totalled RM10.654 billion, making it Sabah’s largest trading partner,” he said at the Malaysia-China Summit 2024: Networking Engagement Series in Sabah at Shangri-La Tanjung Aru Resort, Wednesday.
His speech was delivered by Assistant Minister to the Chief Minister Datuk Nizam Abu Bakar Titingan. He said Sabah’s economic ties with China were driven by strong trade, investment and collaborative projects across sectors. More Daily Express
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Analyses of MSPO to EUDR shows readiness, not 'weakness' or shortcomings
Two assessments have been conducted analysing in detail how closely the Malaysian Sustainable Palm Oil (MSPO) standard is able to match the requirements of the EU’s Deforestation Regulation (EUDR) – and how MSPO can therefore be used as a tool for companies to comply with the EUDR.
The analyses were undertaken separately, one by the independent certification expert and auditor Pierre Bois d’Enghien from Belgium, and the other by the European Forest Institute (EFI), an EU-funded body focused on environmental and agricultural sustainability.
In May, a Webinar was hosted by the Malaysian Palm Oil Council (MPOC) to present and discuss these two assessments. The Webinar featured experts from the European Forest Institute (EFI), the Malaysian Sustainable Palm Oil (MSPO), and Pierre Bois d’Enghien, author of the MSPO-EUDR Assessment.
Regrettably, some of the reporting following the publication of the Webinar and the Assessments, has been wide of the mark. EFI’s presentation, which can be viewed online here, highlighted some ‘information gaps’ where MSPO and EUDR did not fully align: the message was interpreted by some in the media as portraying ‘weakness’ or ‘shortcomings’ in the MSPO.
This is a complete misconception, and a highly immature approach to assessing MSPO against EUDR. No standard is perfect, anywhere in the world or at any time in history. MSPO is no different. Areas for improvement, progress, development will always exist. The Assessments conducted by Pierre Bois d’Enghien and by EFI are part of the process of continuous improvement of the MSPO standard. This commitment to mature and rigorous analysis means that MSPO can continue to improve.
In fact, the small number of potential improvements and alignment for MSPO, related to EUDR, are the same issues identified by others in the palm oil supply chain. A recent letter from FEDIOL and other highlighted several areas where alignment with EUDR is a problem across European-based companies and associations as well as in producing countries such as Malaysia. This demonstrates there is in reality no shortcoming or weakness of MSPO – rather, there are deep and broad challenges around EUDR that affect businesses across supply chains and across continents.
Pejorative language such as ‘information gaps’ and ‘shortcomings’ is neither accurate nor helpful. Cooperation with expert assessments is a positive effort to fine-tune the MSPO standard, and this should be welcomed, not used to undermine Malaysia.
In practice, both the assessments by EFI and by Pierre Bois d’Enghien came to the same conclusion: MSPO is a world-class standard whose the vast majority of areas are fully compliant and aligned with EUDR requirements.
Pierre Bois d’Enghien explained that “EUDR is very difficult and costly. Compliance will only be achieved if the EU Commission is willing to work with – rather than just dictate to – countries in the developing world. This should start with recognising and rewarding the positive efforts of our trading partners, including the MSPO certification standard in Malaysia. Malaysia is well-positioned because of MSPO. For many other countries, what is needed is a delay in EUDR implementation, or increased flexibility from the EU authorities.”
The importance of MSPO was also highlighted by MPOC Chief Executive Officer, Belvinder Kaur Sron, during the MPOC 3.0 Webinar on the subject. She said: “In some areas, such as the cut-off date for deforestation, MSPO is actually stricter and more rigorous than the EU Regulation. More cooperation is now needed between the European Union and the Malaysian palm oil community, to identify how MSPO can be accepted and recognised by the EU.”
The next step now is for the EU authorities to make progress in accepting MSPO. The thorough and independent approach taken by Malaysia to assessing and improving the standard – including the two recent Assessments – is an important milestone that should be welcomed by the EU. It is now a question for EU leaders to find the right structure, either under EUDR or a similar mechanism, for recognizing MSPO. In doing so, the EU will improve trade facilitation, guarantee the sustainability of palm oil in the EU market, and incentivize other countries to follow Malaysia’s example of prioritizing sustainability and zero deforestation.
The decision by EU authorities does not take place in a vacuum. It is important that all stakeholders and participants in this debate use responsible language when communicating about the fundings of assessments. Giving the impression of ‘shortcomings’ or ‘gaps’ is not constructive; rather, the discussion should be focus on Malaysia’s impressive commitment and determination to improve MSPO, and lead the conversation on palm oil sustainability. My Palm Oil Policy
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Trase: UK unprotected from high levels of deforestation exposure
Delivering legislation to tackle deforestation should be a priority for the newly elected British government. Trase research shows the UK’s demand for beef, cocoa and palm oil continues to drive high levels of forest loss and land conversion in Brazil, Côte d’Ivoire and Indonesia.
UK legislation establishing rules to prohibit the importation of commodities grown on illegally deforested land was not agreed by Parliament before it was dissolved ahead of the UK general election on 4 July. The UK government had promised “world-leading” action on deforestation under its 2021 Environment Act. In contrast, the EU’s deforestation regulation comes into effect at the end of this year. New Trase research shows how the lack of legislation leaves the UK exposed to high levels of deforestation.
The UK’s average deforestation exposure in 2019–2021 was 15,200 hectares. In comparison to EU27 countries , the UK ranks sixth between France and Belgium. Over the same period, France’s deforestation exposure was 15,900 ha, Italy’s 17,700 ha and Germany’s 22,800 ha.
The UK’s total exposure decreased by 32% between 2014 and 2021. The biggest change was for oil palm, which saw a 63.8% decrease in deforestation exposure over the period. Trase’s analysis of the EU27 showed that the bloc experienced a similar reduction in total exposure (35.5%). These results are both primarily due to a fall in deforestation linked to oil palm production in Indonesia . However, the latest data suggests that deforestation rates are creeping up again, which is not yet reflected in Trase’s analysis for the UK or the EU27.
There was also a substantial drop in deforestation exposure from imports of soy and cattle products. However, the loss of Brazil’s Cerrado due to the expansion of soy and cattle production is increasing, indicating the need for urgent action. More SEI
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Another Trade War? Escalating Friction in Indonesia-EU Relations
The discord between Indonesia and the EU over nickel and deforestation issues reflect broader challenges facing the global order.
Amid the escalating rivalry between the United States and China, the geopolitical landscape is witnessing the emergence of another contentious relationship, this time involving Indonesia, a rising regional power in Southeast Asia, and the European Union (EU).
Trade relations between Indonesia and the EU have increasingly deteriorated in recent years, particularly in sectors such as raw nickel and palm oil. One significant issue is Indonesia’s imposition of an export ban on raw nickel and other mineral ores. Additionally, the EU has implemented strict deforestation regulations affecting Indonesia’s export of palm oil and other agricultural products. While these bilateral tensions undoubtedly impact the associated industrial sectors, they more importantly underscore the evolving dynamism of global fragmentation and the further shift toward a multipolar world order. More The Diplomat
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Edible oils firms plead for freezing of import tax hike
Edible Oil Manufacturers Association of Kenya appealed for the stay on execution of the duty for the sake of Kenyans
- Cooking oil is a key element in a number of everyday foods like bread, mandazi, chapati and chips.
- The move they noted will have a devastating effect on the majority low-income earners.
The levy that came into effect on July 1, they claimed, will see rise in the cost of living in the country as the price hike will have ripple effect on key basic household commodities.
This is because the prices of any product that requires oil will likely go up.
In a dispatch to the newsrooms, the players under the Edible Oil Manufacturers Association of Kenya, appealed for the stay on execution of the duty, for the sake of Kenyans.
“With cooking oil also being an important component in production of essential everyday products like soap, bread, mandazi, chapatis and margarine, the prices of these essential household products will also go up and further push up the cost of living for millions of struggling Kenyans,” the manufacturers said in a statement.
The move they noted, will have a devastating effect on the majority low-income earners. The Star KE
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Sabah’s China trade at RM10.7 billion
KOTA KINABALU: Chief Minister Datuk Seri Hajiji Noor said China is Sabah’s largest trading partner, chalking a bilateral trade value totalling RM10.7 billion last year.
“In 2023, Sabah’s total trade was valued at RM41.463 billion, with main exports comprising palm oil at RM15.291 billion, liquefied natural gas (LNG) at RM5.051 billion, crude petroleum at RM2.548 billion, palm kernel oil at RM1.289 billion and palm oil-based oleochemicals at RM1.123 billion.
“Of this, bilateral trade totalled RM10.654 billion, making it Sabah’s largest trading partner,” he said at the Malaysia-China Summit 2024: Networking Engagement Series in Sabah at Shangri-La Tanjung Aru Resort, Wednesday.
His speech was delivered by Assistant Minister to the Chief Minister Datuk Nizam Abu Bakar Titingan. He said Sabah’s economic ties with China were driven by strong trade, investment and collaborative projects across sectors. More Daily Express
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July 03, 2024
Preparing for EUDR: Strategies and Challenges Faced by EU Operators and Malaysian Exporters
Preparing for EUDR: Strategies and Challenges Faced by EU Operators and Malaysian Exporters
UK delegation learns about sustainable practices in Malaysian palm oil sector
The Malaysian Palm Oil Council (MPOC) hosted a delegation from the United Kingdom, to showcase the industry’s sustainable practices and socio-economic contributions.
Aimed at promoting the use of Malaysian Sustainable Palm Oil (MSPO) standards, the council teamed up with Kuala Lumpur-based social enterprise Wild Asia to organise visits to three smallholder plantations and Genting TrusHidup Oil Mill in Sandakan, Sabah.
To display Malaysia’s commitment to wildlife conservation, the delegation was taken to Sepilok Orangutan Rehabilitation Centre in Sandakan and Borneo Elephant Sanctuary in Kinabatangan.
Additionally, the visitors also toured SD Guthrie’s Palm Oil Experience Centre (POEC) in Carey Island and smallholder Felda plantations in Sungai Tengi Selatan, Kuala Kubu Baru.
The tour of these two Selangor locations aimed to give the visitors a view of both large-scale and smallholder palm oil operations.
MPOC chief executive officer Belvinder Sron pointed out that the UK was a highly promising market where palm oil is among the most consumed oils and fats.
In 2023, the UK imported 381,000 tonnes of palm oil, with Malaysia contributing 5% of these imports.
Tariffs on Malaysian palm oil imports into the UK will be eliminated once the UK’s 2023 agreement to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) comes into force later this year.
This move is set to benefit UK industry and consumers.
“For Malaysia, we see the UK as a constructive partner in sustainability,” Belvinder said. More The StarMY
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CIMB becomes first bank in Malaysia to set 2030 carbon reduction target for high-emitting sectors
KUALA LUMPUR: CIMB Group Holdings Bhd has become the first Malaysian bank to complete its 2030 decarbonisation target setting for high-emiting sectors financing portfolios, such as thermal coal mining, cement, palm oil and power, in pursuit of its broader 2050 net zero commitments.
The bank has set a target to reduce the emissions intensity of its oil and gas financial portfolios by 16 per cent and as much as 34 per cent for the real estate portfolio by 2030.
The bank also updated its previously published whitepaper detailing its decarbonisation plans, meticulously delineating sector-specific pathways and immediate strategies for all six sectors, which collectively accounts for 60 per cent of its financing portfolio emissions as of 2023.
CIMB Bank and CIMB Malaysia chief executive officer Gurdip Singh Sidhu said the interim targets demonstrate the bank's accountability and reinforce its commitment to facilitating a just transition across Asean. More New Straits Times
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How the EU Deforestation Rule Will Affect Agriculture in Brazil
Joana Colussi, Gary Schnitkey, and Nick Paulson,
Department of Agricultural and Consumer Economics
University of Illinois
Carl Zulauf
Department of Agricultural, Environmental and Development Economics
Ohio State University
Agricultural producers with goals of continuing exports to the European Union (EU) have six months to comply with new rules set by the EU to curb deforestation. The new legislation takes effect on Dec. 31 and is part of a larger package of regulations within the Green Deal, an agreement approved by the European Parliament in 2019 and designed to achieve the goals of the Paris Agreement on climate change. Companies and traders planning on selling soybeans, beef, coffee, palm oil, cocoa, wood, and rubber to the EU market will have to be able to prove that their supply chains have not contributed to deforestation any time after Dec. 31, 2020. No product covered by the EU Deforestation Regulation (EUDR) produced in a deforested area after that date will be permitted to enter the EU market.
Brazil is a leading exporter of most of the commodities in the scope of the legislation. The EU is Brazil’s second-largest trading partner, accounting for 16% of Brazil’s total trade. Brazil is the EU’s 11th-largest trading partner. The products specified by the EUDR account for 30% of the total value of Brazilian trade in 2023, with Europe purchasing more than a third of these exports. This article examines the potential implications for Brazilian agribusiness, looking into seven commodities covered by the new European anti-deforestation law.
EUDR Background
In June 2023, the European Union introduced a new regulation regarding deforestation-free products, allowing 18 to 24 months for the regulation to take effect. The legislation seeks to prohibit the import and trade within the European bloc of products derived from seven commodities — soybeans, cattle, coffee, cocoa, palm oil, rubber, and wood — from areas deforested after December 31, 2020. The EUDR is one of more than 50 regulations within the Green Deal.
The new regulation will impose its primary obligations starting Dec. 31, 2024, for large and medium-sized importing companies and beginning June 30, 2025, for small and micro-importing companies. Only deforestation of forests will be initially considered, but the EU could include other native areas within one year after the regulation takes effect.
The EUDR requires importers to establish a due diligence system for their supply chains, and they must conduct this due diligence before importing the affected products. The process for European importers must involve: More Farm Doc Daily
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Latin America prepares for new trade regulations on deforestation
02/07/2024
From April 24-25 in Lima, Peru, the regional workshop "Experiences and Advances in the Implementation of Market Regulations on Deforestation" took place. This event was led by Peru's Ministries of Agrarian Development and Irrigation (MIDAGRI) and Foreign Trade and Tourism (MINCETUR), with technical support from the Food and Agriculture Organization of the United Nations (FAO).
The workshop, jointly organized by UN REDD, Accelerating Innovative Monitoring for Forests (AIM4Forests) and the Forest Data Partnership included 66 representatives from various organizations in Brazil, Colombia, Costa Rica, Ecuador, Honduras, Guatemala, and Peru, as well as the European Union Delegation (EU), the British Embassy in Peru, German Technical Cooperation (GIZ), Biodiversity Alliance-CIAT, and Solidaridad.
The workshop aimed to share strategies and approaches to address market demands related to deforestation, including the European Union's Deforestation Regulation (EUDR), among Latin American countries. It sought to accelerate understanding of these new rules and identify readiness actions to comply with them, focusing especially on the supply chains of cocoa, coffee, and palm oil in Peru.
Christian Garay, Vice Minister of Policies at MIDAGRI in Peru, highlighted the country's progress: "To comply with the European regulation, we have identified deforested areas and geolocated 90% of agricultural producers of coffee, cocoa, and palm oil nationwide. We are developing proposals for regulatory improvements for formal access to agricultural land and aspects related to the environmental management of agricultural units, to address the provisions of the European regulation."
During the workshop, four areas of work related to different aspects of the EU regulation on deforestation were addressed: geospatial information, traceability, legal criteria, and risk assessment and mitigation. Below is a summary of the discussions and proposals for each area of work.
Geospatial Information
Regarding geospatial information, the working group used the evaluation framework developed by AIM4Forests, which helped identify the data availability status, challenges, and readiness of the seven countries to provide geospatial information on the location and deforestation risk of agricultural plots. Data access and quality were highlighted as main challenges, with varying levels of preparedness among countries. A new open-source solution, Whisp (What is in that plot?), from the Open Foris family, developed through collaboration between AIM4Forests and the Forest Data Partnership, was presented as potentially useful for advancing geospatial analysis. It aims to implement convergence of evidence within any land plot with relevant forest monitoring information and support the implementation of the EU Regulation on deforestation-free products. Proposals included regional collaborative work, developing webinars and training sessions in Spanish, and conducting pilot experiences of the solutions in Colombia and Ecuador. More FAO
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UMD-led study finds one-third of Indonesia’s deforested land left idle
Peer-Reviewed Publication
UNIVERSITY OF MARYLAND
According to a new study published in the Proceedings of the National Academy of Sciences, extensive land areas have been left sitting idle after tropical forests were cleared in Indonesia, a country renowned for its biodiverse rainforests and carbon-rich peatlands. Since 1990, the country has lost 25% of its old-growth forest, and while over one-quarter (7.8 million hectares) of Indonesia’s deforested lands have been converted to palm oil plantations since 2020, an even larger area (8.8 million hectares, roughly the size of Maine), remain vacant.
The study, which focused on Indonesian deforestation trends from 1991 to 2020, also found that over half of Indonesia’s deforested lands were left idle for at least one year after forest clearing, and that 44% remained idle for at least five years.
“Old-growth tropical forests are an extremely valuable resource, both locally and globally,” said Diana Parker, a postdoctoral associate in the University of Maryland’s Department of Geographical Sciences and the lead author of the paper. “The fact that such a large area of old-growth forest has been cleared then left empty is surprising.”
To understand why so much idle land was being created, researchers first had to determine how the forests were cleared. During the 2015 El Niño event, forest and land fires in Indonesia created a major public health crisis both in Indonesia and in neighboring countries. Some researchers have speculated that forest fires such as those that occurred in 2015 are largely responsible for the extensive areas of idle non-forest land. This study, however, found that fires resulting in tree cover loss accounted for less than half of all idle land clearing; 54% were cleared mechanically, either through manual clearing or using heavy machinery. More Eureka Alert
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17 Like-Minded Countries Study Indonesia's Sustainable Palm Oil Practices in Riau
Bogor and Riau, Indonesia – The Capacity Building Training for Sustainable Commodity Management Based on Smallholder Agriculture for Like-Minded Countries (LMCs) has been successfully conducted in Bogor and Riau (22/6 - 2/7). This training is a collaboration between the Ministry of Foreign Affairs of the Republic of Indonesia, Institut Pertanian Bogor (IPB), and the Lembaga Dana Kerja Sama Pembangunan Indonesia (LDKPI).
Participants had the opportunity to visit palm oil plantations in Siak, Riau, managed by smallholder farmers. The plantation is committed to sustainable practices, with 80 farmers already ISPO certified. Additionally, the visited plantations prioritize local wisdom and forest conservation in their management practices, exemplified by the use of bio-pesticides and organic fertilizers. The visited plantations have also implemented traceability practices using the Polygon Mapping method.
The 36 participants also attended a dinner hosted by the Riau Provincial Government at Bale Serindit in Pekanbaru. The event featured the traditional welcoming dance Joget Sonde, distinctive Malay music, and local cuisine from the Riau Province.
Advisor to the Minister of Foreign Affairs of The Republic of Indonesia on Political, Legal, and Security Affairs, Ambassador Adam M. Tugio representing the Ministry of Foreign Affairs at the event, expressed hope that the participants could learn best practices from the palm oil plantations in Riau, particularly regarding sustainability and the contributions of smallholder farmers to the palm oil industry.
"It is hoped that this visit provides valuable lessons and benefits for the participants that they can take back to their respective countries," he concluded.
Assistant III of the Riau Provincial Government Secretariat, Mrs. Elly Wardhani, in her remarks, emphasized that business operators and smallholder farmers have worked hard to meet the Indonesia Sustainable Palm Oil (ISPO) certification and are committed to ensuring that all plantation commodities in Riau employ environmentally friendly and sustainable practices. More KEMLU
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India's June palm oil imports rise to 6-month high on lower prices
India's palm oil imports rose in June due to strong demand before festivals. Refiners played a key role, potentially impacting Malaysian palm oil futures. Sunvin Group highlighted palm oil's competitive pricing. The country's edible oil imports increased, with significant purchases from Indonesia, Brazil, Russia, and Ukraine.
MUMBAI: India's palm oil imports rose by 3% in June from the previous month to reach the highest level in six months on robust demand from refiners for upcoming festivals and as the oil traded at a discount to rival oils, five dealers told Reuters. Economic Times
The Malaysian Palm Oil Council (MPOC) hosted a delegation from the United Kingdom, to showcase the industry’s sustainable practices and socio-economic contributions.
Aimed at promoting the use of Malaysian Sustainable Palm Oil (MSPO) standards, the council teamed up with Kuala Lumpur-based social enterprise Wild Asia to organise visits to three smallholder plantations and Genting TrusHidup Oil Mill in Sandakan, Sabah.
To display Malaysia’s commitment to wildlife conservation, the delegation was taken to Sepilok Orangutan Rehabilitation Centre in Sandakan and Borneo Elephant Sanctuary in Kinabatangan.
Additionally, the visitors also toured SD Guthrie’s Palm Oil Experience Centre (POEC) in Carey Island and smallholder Felda plantations in Sungai Tengi Selatan, Kuala Kubu Baru.
The tour of these two Selangor locations aimed to give the visitors a view of both large-scale and smallholder palm oil operations.
MPOC chief executive officer Belvinder Sron pointed out that the UK was a highly promising market where palm oil is among the most consumed oils and fats.
In 2023, the UK imported 381,000 tonnes of palm oil, with Malaysia contributing 5% of these imports.
Tariffs on Malaysian palm oil imports into the UK will be eliminated once the UK’s 2023 agreement to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) comes into force later this year.
This move is set to benefit UK industry and consumers.
“For Malaysia, we see the UK as a constructive partner in sustainability,” Belvinder said. More The StarMY
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CIMB becomes first bank in Malaysia to set 2030 carbon reduction target for high-emitting sectors
KUALA LUMPUR: CIMB Group Holdings Bhd has become the first Malaysian bank to complete its 2030 decarbonisation target setting for high-emiting sectors financing portfolios, such as thermal coal mining, cement, palm oil and power, in pursuit of its broader 2050 net zero commitments.
The bank has set a target to reduce the emissions intensity of its oil and gas financial portfolios by 16 per cent and as much as 34 per cent for the real estate portfolio by 2030.
The bank also updated its previously published whitepaper detailing its decarbonisation plans, meticulously delineating sector-specific pathways and immediate strategies for all six sectors, which collectively accounts for 60 per cent of its financing portfolio emissions as of 2023.
CIMB Bank and CIMB Malaysia chief executive officer Gurdip Singh Sidhu said the interim targets demonstrate the bank's accountability and reinforce its commitment to facilitating a just transition across Asean. More New Straits Times
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How the EU Deforestation Rule Will Affect Agriculture in Brazil
Joana Colussi, Gary Schnitkey, and Nick Paulson,
Department of Agricultural and Consumer Economics
University of Illinois
Carl Zulauf
Department of Agricultural, Environmental and Development Economics
Ohio State University
Agricultural producers with goals of continuing exports to the European Union (EU) have six months to comply with new rules set by the EU to curb deforestation. The new legislation takes effect on Dec. 31 and is part of a larger package of regulations within the Green Deal, an agreement approved by the European Parliament in 2019 and designed to achieve the goals of the Paris Agreement on climate change. Companies and traders planning on selling soybeans, beef, coffee, palm oil, cocoa, wood, and rubber to the EU market will have to be able to prove that their supply chains have not contributed to deforestation any time after Dec. 31, 2020. No product covered by the EU Deforestation Regulation (EUDR) produced in a deforested area after that date will be permitted to enter the EU market.
Brazil is a leading exporter of most of the commodities in the scope of the legislation. The EU is Brazil’s second-largest trading partner, accounting for 16% of Brazil’s total trade. Brazil is the EU’s 11th-largest trading partner. The products specified by the EUDR account for 30% of the total value of Brazilian trade in 2023, with Europe purchasing more than a third of these exports. This article examines the potential implications for Brazilian agribusiness, looking into seven commodities covered by the new European anti-deforestation law.
EUDR Background
In June 2023, the European Union introduced a new regulation regarding deforestation-free products, allowing 18 to 24 months for the regulation to take effect. The legislation seeks to prohibit the import and trade within the European bloc of products derived from seven commodities — soybeans, cattle, coffee, cocoa, palm oil, rubber, and wood — from areas deforested after December 31, 2020. The EUDR is one of more than 50 regulations within the Green Deal.
The new regulation will impose its primary obligations starting Dec. 31, 2024, for large and medium-sized importing companies and beginning June 30, 2025, for small and micro-importing companies. Only deforestation of forests will be initially considered, but the EU could include other native areas within one year after the regulation takes effect.
The EUDR requires importers to establish a due diligence system for their supply chains, and they must conduct this due diligence before importing the affected products. The process for European importers must involve: More Farm Doc Daily
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Latin America prepares for new trade regulations on deforestation
02/07/2024
From April 24-25 in Lima, Peru, the regional workshop "Experiences and Advances in the Implementation of Market Regulations on Deforestation" took place. This event was led by Peru's Ministries of Agrarian Development and Irrigation (MIDAGRI) and Foreign Trade and Tourism (MINCETUR), with technical support from the Food and Agriculture Organization of the United Nations (FAO).
The workshop, jointly organized by UN REDD, Accelerating Innovative Monitoring for Forests (AIM4Forests) and the Forest Data Partnership included 66 representatives from various organizations in Brazil, Colombia, Costa Rica, Ecuador, Honduras, Guatemala, and Peru, as well as the European Union Delegation (EU), the British Embassy in Peru, German Technical Cooperation (GIZ), Biodiversity Alliance-CIAT, and Solidaridad.
The workshop aimed to share strategies and approaches to address market demands related to deforestation, including the European Union's Deforestation Regulation (EUDR), among Latin American countries. It sought to accelerate understanding of these new rules and identify readiness actions to comply with them, focusing especially on the supply chains of cocoa, coffee, and palm oil in Peru.
Christian Garay, Vice Minister of Policies at MIDAGRI in Peru, highlighted the country's progress: "To comply with the European regulation, we have identified deforested areas and geolocated 90% of agricultural producers of coffee, cocoa, and palm oil nationwide. We are developing proposals for regulatory improvements for formal access to agricultural land and aspects related to the environmental management of agricultural units, to address the provisions of the European regulation."
During the workshop, four areas of work related to different aspects of the EU regulation on deforestation were addressed: geospatial information, traceability, legal criteria, and risk assessment and mitigation. Below is a summary of the discussions and proposals for each area of work.
Geospatial Information
Regarding geospatial information, the working group used the evaluation framework developed by AIM4Forests, which helped identify the data availability status, challenges, and readiness of the seven countries to provide geospatial information on the location and deforestation risk of agricultural plots. Data access and quality were highlighted as main challenges, with varying levels of preparedness among countries. A new open-source solution, Whisp (What is in that plot?), from the Open Foris family, developed through collaboration between AIM4Forests and the Forest Data Partnership, was presented as potentially useful for advancing geospatial analysis. It aims to implement convergence of evidence within any land plot with relevant forest monitoring information and support the implementation of the EU Regulation on deforestation-free products. Proposals included regional collaborative work, developing webinars and training sessions in Spanish, and conducting pilot experiences of the solutions in Colombia and Ecuador. More FAO
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UMD-led study finds one-third of Indonesia’s deforested land left idle
Peer-Reviewed Publication
UNIVERSITY OF MARYLAND
According to a new study published in the Proceedings of the National Academy of Sciences, extensive land areas have been left sitting idle after tropical forests were cleared in Indonesia, a country renowned for its biodiverse rainforests and carbon-rich peatlands. Since 1990, the country has lost 25% of its old-growth forest, and while over one-quarter (7.8 million hectares) of Indonesia’s deforested lands have been converted to palm oil plantations since 2020, an even larger area (8.8 million hectares, roughly the size of Maine), remain vacant.
The study, which focused on Indonesian deforestation trends from 1991 to 2020, also found that over half of Indonesia’s deforested lands were left idle for at least one year after forest clearing, and that 44% remained idle for at least five years.
“Old-growth tropical forests are an extremely valuable resource, both locally and globally,” said Diana Parker, a postdoctoral associate in the University of Maryland’s Department of Geographical Sciences and the lead author of the paper. “The fact that such a large area of old-growth forest has been cleared then left empty is surprising.”
To understand why so much idle land was being created, researchers first had to determine how the forests were cleared. During the 2015 El Niño event, forest and land fires in Indonesia created a major public health crisis both in Indonesia and in neighboring countries. Some researchers have speculated that forest fires such as those that occurred in 2015 are largely responsible for the extensive areas of idle non-forest land. This study, however, found that fires resulting in tree cover loss accounted for less than half of all idle land clearing; 54% were cleared mechanically, either through manual clearing or using heavy machinery. More Eureka Alert
--------
17 Like-Minded Countries Study Indonesia's Sustainable Palm Oil Practices in Riau
Bogor and Riau, Indonesia – The Capacity Building Training for Sustainable Commodity Management Based on Smallholder Agriculture for Like-Minded Countries (LMCs) has been successfully conducted in Bogor and Riau (22/6 - 2/7). This training is a collaboration between the Ministry of Foreign Affairs of the Republic of Indonesia, Institut Pertanian Bogor (IPB), and the Lembaga Dana Kerja Sama Pembangunan Indonesia (LDKPI).
Participants had the opportunity to visit palm oil plantations in Siak, Riau, managed by smallholder farmers. The plantation is committed to sustainable practices, with 80 farmers already ISPO certified. Additionally, the visited plantations prioritize local wisdom and forest conservation in their management practices, exemplified by the use of bio-pesticides and organic fertilizers. The visited plantations have also implemented traceability practices using the Polygon Mapping method.
The 36 participants also attended a dinner hosted by the Riau Provincial Government at Bale Serindit in Pekanbaru. The event featured the traditional welcoming dance Joget Sonde, distinctive Malay music, and local cuisine from the Riau Province.
Advisor to the Minister of Foreign Affairs of The Republic of Indonesia on Political, Legal, and Security Affairs, Ambassador Adam M. Tugio representing the Ministry of Foreign Affairs at the event, expressed hope that the participants could learn best practices from the palm oil plantations in Riau, particularly regarding sustainability and the contributions of smallholder farmers to the palm oil industry.
"It is hoped that this visit provides valuable lessons and benefits for the participants that they can take back to their respective countries," he concluded.
Assistant III of the Riau Provincial Government Secretariat, Mrs. Elly Wardhani, in her remarks, emphasized that business operators and smallholder farmers have worked hard to meet the Indonesia Sustainable Palm Oil (ISPO) certification and are committed to ensuring that all plantation commodities in Riau employ environmentally friendly and sustainable practices. More KEMLU
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India's June palm oil imports rise to 6-month high on lower prices
India's palm oil imports rose in June due to strong demand before festivals. Refiners played a key role, potentially impacting Malaysian palm oil futures. Sunvin Group highlighted palm oil's competitive pricing. The country's edible oil imports increased, with significant purchases from Indonesia, Brazil, Russia, and Ukraine.
MUMBAI: India's palm oil imports rose by 3% in June from the previous month to reach the highest level in six months on robust demand from refiners for upcoming festivals and as the oil traded at a discount to rival oils, five dealers told Reuters. Economic Times
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July 02, 2024
EUDR-EPP draft plan seeks to place anti-deforestation law on back-burner
By Sofia Sanchez Manzanaro | Euractiv
The European People’s Party (EPP) wants, as a priority for the next mandate, to postpone the implementation of the EU’s anti-deforestation law, scheduled to take effect by the end of the year, according to a draft of the party’s five-year plan seen by Euractiv.
The new anti-deforestation regulation (EUDR) will force companies to demonstrate that certain products, such as cocoa, palm oil, coffee and cattle, have not contributed to deforestation before they can be placed on the EU market.
In its draft priorities for the 2024-2029 Commission work programme, the EPP proposes delaying the implementation of the EUDR and to address “problems related to its implementation.”
The document will be discussed at an EPP group meeting in Cascais, Portugal, on 2-5 July.
Peter Liese, a prominent German Member of the European Parliament (MEP) and the EPP’s environment spokesperson has spearheaded the opposition to the law’s imminent enforcement.
Liese, recently re-elected as MEP, supports the regulation’s goal of ending global deforestation but criticised the final text as a “bureaucratic monster,” blaming greens, socialists, leftists, and French Liberals.
“If we [the EPP] wouldn’t have participated in the negotiations, the EUDR would be even worse,” he told Euractiv.
Nevertheless, an EPP lawmaker, Luxembourgish MEP Christophe Hansen, represented the Parliament in negotiations with member states on the EUDR. More Euractiv
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Indonesian Trade Minister Zulkifli Hasan sends off 190 tons of coffee to US
Medan (ANTARA) - Trade Minister Zulkifli Hasan on Monday sent off an export consignment of more than 190 tons of coffee beans to the United States from Deli Serdang district, North Sumatra.
"I am grateful for the opportunity to send off the exports of 10 containers of coffee worth nearly US$1.5 million in total," he said in Deli Serdang.
He underlined the need for Indonesia to continue boosting the volume of coffee exports, considering coffee's status as one of the country's featured export commodities.
The minister then highlighted that the Indonesian government is currently making efforts to ensure that the European Union Deforestation Regulation does not hinder the nation's exports of clove, pepper, coffee, and palm oil to Western markets.
"We are currently doing our best to complete negotiations on the IEU-CEPA (Indonesia-European Union Comprehensive Economic Partnership Agreement)," he said.
By completing and rolling out the agreement, he explained, Indonesia will not face any obstacles in exporting those commodities to markets in the European Union or the United States. More Antara News
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Study finds one-third of Indonesia's deforested land left idle
by University of Maryland
According to a study published in the Proceedings of the National Academy of Sciences, extensive land areas have been left sitting idle after tropical forests were cleared in Indonesia, a country renowned for its biodiverse rainforests and carbon-rich peatlands.
Since 1990, the country has lost 25% of its old-growth forest, and while over one-quarter (7.8 million hectares) of Indonesia's deforested lands have been converted to palm oil plantations since 2020, an even larger area (8.8 million hectares, roughly the size of Maine), remain vacant.
The study, which focused on Indonesian deforestation trends from 1991 to 2020, also found that over half of Indonesia's deforested lands were left idle for at least one year after forest clearing, and that 44% remained idle for at least five years.
"Old-growth tropical forests are an extremely valuable resource, both locally and globally," said Diana Parker, a postdoctoral associate in the University of Maryland's Department of Geographical Sciences and the lead author of the paper. "The fact that such a large area of old-growth forest has been cleared then left empty is surprising."
To understand why so much idle land was being created, researchers first had to determine how the forests were cleared. During the 2015 El Niño event, forest and land fires in Indonesia created a major public health crisis both in Indonesia and in neighboring countries. Some researchers have speculated that forest fires such as those that occurred in 2015 are largely responsible for the extensive areas of idle non-forest land. More Phys Org
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ETCAS Says B100 Biodiesel Program Needs Could Reach 36 Million Palm Oil
InfoSAWIT, JAKARTA – The Oil Palm Business Recovery & Rescue Team from ETCAS Consultants held a discussion on the possibility of implementing the B100 Biodiesel Program in the Cilandak area, Jakarta. The discussion was attended by a number of experts including Drs. Dadan Rysyad Nurdin, Ir. Erick Sitompul, Dr. Ir. Memet Hakim, Aendra Medita S.Sn, Hendra Purba SE, and Junaidi.
In the discussion, one of the ETCAS members, Memet Hakim, noted that with the B100 Program, the need for Fatty Acid Methyl Ester (FAME) or biodiesel is projected to increase threefold, from 12 million tons to 36 million tons of palm oil
"The need for cooking oil and industrial materials is also expected to increase in the next five years. In addition, there is a need for Bensa (palm gasoline), which increases the need for palm oil by 42 million tons, from 50 million tons to 92 million tons," Memet said in his statement to InfoSAWIT written Tuesday (2/7/2024).
Then, in order to meet this increasing need, a breakthrough in agronomic technology is needed, such as Root & Canopy Management, which can drastically increase palm oil productivity, although gradually, by up to 30-80%. In addition, abandoned plantations should be handed over to PTPN to be managed and repaired. All land banks and licensed lands also need to be planted immediately, with a target area of 20 million hectares in the next five years. The ongoing replanting program is also expected to rejuvenate old oil palms and replace them with superior seeds. More Info Sawit
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The Complexity of Palm Oil Licensing in South Papua
InfoSAWIT, MERAUKE – Assistant II of the Regional Secretariat of South Papua Province, Sunaryo, who also handles licensing and investment, revealed the current situation regarding palm oil licensing in the South Papua region. When representing the Governor of South Papua to attend a meeting of indigenous peoples in Maam with the company PT. Dongin Prabhawa at Sunny Day recently, Sunaryo explained that since the Merauke Integrated Food and Energy Estate (MIFEE) program was launched in 2010-2011, 49 permits have been issued for plantation investment.
However, of the dozens of permits, only a few companies are still operating today, including Korindo Group, PT. BIA, AJP, APM, and IJS. Sunaryo expressed the importance of investment for sustainable development in this area, while emphasizing that investment must be balanced and not only oriented towards profit.
"In accordance with the statement of the investment minister that no region can develop without investment. Furthermore, investment is not necessarily oriented towards profit, but to maintain balance, this is what we need to pay attention to," said Sunaryo as quoted by InfoSAWIT from papuaselatanpos , written Tuesday (2/7/2024).
Then, problems arose regarding the discrepancy between the indigenous community and PT. Dongin Prabhawa, one of the companies involved. Sunaryo stated that at the provincial level, forest conversion is their responsibility, while the status of Other Use Areas (APL) is the full authority of the district government.
The controversy illustrates the complexity of managing permits and investment in South Papua, as well as the challenges of maintaining a balance between economic development and environmental protection and indigenous peoples' rights. Info Sawit
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India consumes around 23 million tons of vegetable oil: Shatadru
Emotions have strongly dominated the debate on palm oil. Many anti-palm oil campaigns have encouraged binary thinking, leaving companies, consumers, and governments with only two options: use or ban palm oil. Radical criticisms often lack transparent scientific data, influencing policy-making and consumer opinions. Amidst this polarised discourse, India finds itself at a crucial juncture in determining the future of palm oil sustainability. We spoke with Shatadru Chattopadhayay, Managing Director of Solidaridad, to gain insights into how India is navigating this complex landscape.
Q: Why is Solidaridad promoting palm oil when India is also a leading grower of other oilseeds like soy, groundnut and mustard?
A: While India is indeed a leading grower of other oilseeds, palm oil remains unmatched in terms of yield and efficiency. Palm oil produces significantly more oil per hectare than any other common vegetable oil. A single oil palm seed provides two different kinds of oil. One that is used for cooking; the other palm kernel oil used in everything from cosmetics to biofuels.
India consumes around 23 million tons of vegetable oil, but only 40% is produced within the country. India's vegetable oil consumption is growing. The key is making sure it's planted in the right places and doesn't disturb precious ecosystems.
From the Indian farmer's perspective, planting palm oil with a hectare of land can give a better return on investment by three to four times than other crops. This can be a huge boon for rural economies, giving farmers a secure income and helping communities thrive.
Q: What is Solidaridad's position on the issue of deforestation and India contributing to imported deforestation through palm oil imports? More Daily Pioneer
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Palm oil conference in Indore reshapes perceptions on health and nutrition
Jammu Tawi:The “Palm Oil – Transforming Perceptions for Health and Nutrition” seminar, jointly organized by Solidaridad, Asian Palm Oil Alliance and SEA successfully concluded at the Brilliant Convention Center in Indore. The event brought together leading nutritionists, scientists, medical professionals and edible oil industrialists like the Solvent Extractors' Association of India (SEA), Adani-Wilmar, Godrej Agrovet limited to discuss the multifaceted benefits of palm oil and its role in India's edible oil landscape. The event also addressed India's growing reliance on palm oil, which now exceeds 38% of the country's total edible oil consumption. To meet this demand, plans were outlined to expand oil palm cultivation area by an additional 0.6 million hectares by 2025-26. This expansion is expected to significantly boost domestic production, with projections indicating that crude palm oil production could reach 1.12 million tonnes by 2025-26 and further increase to 2.8 million tonnes by 2029-30, marking a substantial step towards India's goal of self-sufficiency in edible oil production. Atul Chaturvedi, Chairman Asian Palm Oil Alliance, stated: “India, as the world's largest importer of palm oil, is committed to becoming self-sufficient in edible oil production. Palm oil has been a staple in various food and non-food products in India for centuries. However, in recent years, misleading reports about its impact on health, nutrition, and the environment have surfaced, causing harm to our farmers, especially smallholders, and negatively affecting our economy. This seminar aims to change public perceptions about palm oil by presenting scientifically accurate information.” More Northlines
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Johari suggests reinvesting windfall tax in oil palm replanting
The plantation and commodities minister says he will work with the finance ministry and the Malaysian Palm Oil Board to review the tax.
KUALA LUMPUR: Plantation and commodities minister Johari Ghani has proposed that the windfall tax derived from the country’s palm oil industry be channelled back to oil palm growers for replanting.
Johari told the Dewan Rakyat today that the formula used to calculate windfall tax in the palm oil industry was no longer relevant due to the high costs incurred for each metric tonne of palm oil produced.
“Previously, the cost of producing one metric tonne of palm oil was RM1,800; today, it ranges from RM2,800 to RM3,200 depending on size,” he said.
“The windfall tax formula when costs were RM1,800 might have been appropriate, but now with costs ranging from RM2,800 to RM3,200, it may no longer be suitable.
“We will work with the Malaysian Palm Oil Board to review the tax to ensure that every ringgit we collect is returned to the planters for replanting,” he said, adding that he would also raise the matter with the finance ministry.
He was responding to a question by Bakri Jamaluddin (PN-Tangga Batu) about whether the ministry was willing to return windfall tax collections to palm oil industry players.
In the budget for 2022, the government revised the windfall tax for local palm oil producers to a standard 3% levy when crude palm oil (CPO) prices exceeded RM3,000 per tonne in Peninsular Malaysia and surpassed RM3,500 per tonne in Sabah and Sarawak – the largest palm oil producing states in the country. More FMT
EUDR-EPP draft plan seeks to place anti-deforestation law on back-burner
By Sofia Sanchez Manzanaro | Euractiv
The European People’s Party (EPP) wants, as a priority for the next mandate, to postpone the implementation of the EU’s anti-deforestation law, scheduled to take effect by the end of the year, according to a draft of the party’s five-year plan seen by Euractiv.
The new anti-deforestation regulation (EUDR) will force companies to demonstrate that certain products, such as cocoa, palm oil, coffee and cattle, have not contributed to deforestation before they can be placed on the EU market.
In its draft priorities for the 2024-2029 Commission work programme, the EPP proposes delaying the implementation of the EUDR and to address “problems related to its implementation.”
The document will be discussed at an EPP group meeting in Cascais, Portugal, on 2-5 July.
Peter Liese, a prominent German Member of the European Parliament (MEP) and the EPP’s environment spokesperson has spearheaded the opposition to the law’s imminent enforcement.
Liese, recently re-elected as MEP, supports the regulation’s goal of ending global deforestation but criticised the final text as a “bureaucratic monster,” blaming greens, socialists, leftists, and French Liberals.
“If we [the EPP] wouldn’t have participated in the negotiations, the EUDR would be even worse,” he told Euractiv.
Nevertheless, an EPP lawmaker, Luxembourgish MEP Christophe Hansen, represented the Parliament in negotiations with member states on the EUDR. More Euractiv
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Indonesian Trade Minister Zulkifli Hasan sends off 190 tons of coffee to US
Medan (ANTARA) - Trade Minister Zulkifli Hasan on Monday sent off an export consignment of more than 190 tons of coffee beans to the United States from Deli Serdang district, North Sumatra.
"I am grateful for the opportunity to send off the exports of 10 containers of coffee worth nearly US$1.5 million in total," he said in Deli Serdang.
He underlined the need for Indonesia to continue boosting the volume of coffee exports, considering coffee's status as one of the country's featured export commodities.
The minister then highlighted that the Indonesian government is currently making efforts to ensure that the European Union Deforestation Regulation does not hinder the nation's exports of clove, pepper, coffee, and palm oil to Western markets.
"We are currently doing our best to complete negotiations on the IEU-CEPA (Indonesia-European Union Comprehensive Economic Partnership Agreement)," he said.
By completing and rolling out the agreement, he explained, Indonesia will not face any obstacles in exporting those commodities to markets in the European Union or the United States. More Antara News
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Study finds one-third of Indonesia's deforested land left idle
by University of Maryland
According to a study published in the Proceedings of the National Academy of Sciences, extensive land areas have been left sitting idle after tropical forests were cleared in Indonesia, a country renowned for its biodiverse rainforests and carbon-rich peatlands.
Since 1990, the country has lost 25% of its old-growth forest, and while over one-quarter (7.8 million hectares) of Indonesia's deforested lands have been converted to palm oil plantations since 2020, an even larger area (8.8 million hectares, roughly the size of Maine), remain vacant.
The study, which focused on Indonesian deforestation trends from 1991 to 2020, also found that over half of Indonesia's deforested lands were left idle for at least one year after forest clearing, and that 44% remained idle for at least five years.
"Old-growth tropical forests are an extremely valuable resource, both locally and globally," said Diana Parker, a postdoctoral associate in the University of Maryland's Department of Geographical Sciences and the lead author of the paper. "The fact that such a large area of old-growth forest has been cleared then left empty is surprising."
To understand why so much idle land was being created, researchers first had to determine how the forests were cleared. During the 2015 El Niño event, forest and land fires in Indonesia created a major public health crisis both in Indonesia and in neighboring countries. Some researchers have speculated that forest fires such as those that occurred in 2015 are largely responsible for the extensive areas of idle non-forest land. More Phys Org
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ETCAS Says B100 Biodiesel Program Needs Could Reach 36 Million Palm Oil
InfoSAWIT, JAKARTA – The Oil Palm Business Recovery & Rescue Team from ETCAS Consultants held a discussion on the possibility of implementing the B100 Biodiesel Program in the Cilandak area, Jakarta. The discussion was attended by a number of experts including Drs. Dadan Rysyad Nurdin, Ir. Erick Sitompul, Dr. Ir. Memet Hakim, Aendra Medita S.Sn, Hendra Purba SE, and Junaidi.
In the discussion, one of the ETCAS members, Memet Hakim, noted that with the B100 Program, the need for Fatty Acid Methyl Ester (FAME) or biodiesel is projected to increase threefold, from 12 million tons to 36 million tons of palm oil
"The need for cooking oil and industrial materials is also expected to increase in the next five years. In addition, there is a need for Bensa (palm gasoline), which increases the need for palm oil by 42 million tons, from 50 million tons to 92 million tons," Memet said in his statement to InfoSAWIT written Tuesday (2/7/2024).
Then, in order to meet this increasing need, a breakthrough in agronomic technology is needed, such as Root & Canopy Management, which can drastically increase palm oil productivity, although gradually, by up to 30-80%. In addition, abandoned plantations should be handed over to PTPN to be managed and repaired. All land banks and licensed lands also need to be planted immediately, with a target area of 20 million hectares in the next five years. The ongoing replanting program is also expected to rejuvenate old oil palms and replace them with superior seeds. More Info Sawit
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The Complexity of Palm Oil Licensing in South Papua
InfoSAWIT, MERAUKE – Assistant II of the Regional Secretariat of South Papua Province, Sunaryo, who also handles licensing and investment, revealed the current situation regarding palm oil licensing in the South Papua region. When representing the Governor of South Papua to attend a meeting of indigenous peoples in Maam with the company PT. Dongin Prabhawa at Sunny Day recently, Sunaryo explained that since the Merauke Integrated Food and Energy Estate (MIFEE) program was launched in 2010-2011, 49 permits have been issued for plantation investment.
However, of the dozens of permits, only a few companies are still operating today, including Korindo Group, PT. BIA, AJP, APM, and IJS. Sunaryo expressed the importance of investment for sustainable development in this area, while emphasizing that investment must be balanced and not only oriented towards profit.
"In accordance with the statement of the investment minister that no region can develop without investment. Furthermore, investment is not necessarily oriented towards profit, but to maintain balance, this is what we need to pay attention to," said Sunaryo as quoted by InfoSAWIT from papuaselatanpos , written Tuesday (2/7/2024).
Then, problems arose regarding the discrepancy between the indigenous community and PT. Dongin Prabhawa, one of the companies involved. Sunaryo stated that at the provincial level, forest conversion is their responsibility, while the status of Other Use Areas (APL) is the full authority of the district government.
The controversy illustrates the complexity of managing permits and investment in South Papua, as well as the challenges of maintaining a balance between economic development and environmental protection and indigenous peoples' rights. Info Sawit
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India consumes around 23 million tons of vegetable oil: Shatadru
Emotions have strongly dominated the debate on palm oil. Many anti-palm oil campaigns have encouraged binary thinking, leaving companies, consumers, and governments with only two options: use or ban palm oil. Radical criticisms often lack transparent scientific data, influencing policy-making and consumer opinions. Amidst this polarised discourse, India finds itself at a crucial juncture in determining the future of palm oil sustainability. We spoke with Shatadru Chattopadhayay, Managing Director of Solidaridad, to gain insights into how India is navigating this complex landscape.
Q: Why is Solidaridad promoting palm oil when India is also a leading grower of other oilseeds like soy, groundnut and mustard?
A: While India is indeed a leading grower of other oilseeds, palm oil remains unmatched in terms of yield and efficiency. Palm oil produces significantly more oil per hectare than any other common vegetable oil. A single oil palm seed provides two different kinds of oil. One that is used for cooking; the other palm kernel oil used in everything from cosmetics to biofuels.
India consumes around 23 million tons of vegetable oil, but only 40% is produced within the country. India's vegetable oil consumption is growing. The key is making sure it's planted in the right places and doesn't disturb precious ecosystems.
From the Indian farmer's perspective, planting palm oil with a hectare of land can give a better return on investment by three to four times than other crops. This can be a huge boon for rural economies, giving farmers a secure income and helping communities thrive.
Q: What is Solidaridad's position on the issue of deforestation and India contributing to imported deforestation through palm oil imports? More Daily Pioneer
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Palm oil conference in Indore reshapes perceptions on health and nutrition
Jammu Tawi:The “Palm Oil – Transforming Perceptions for Health and Nutrition” seminar, jointly organized by Solidaridad, Asian Palm Oil Alliance and SEA successfully concluded at the Brilliant Convention Center in Indore. The event brought together leading nutritionists, scientists, medical professionals and edible oil industrialists like the Solvent Extractors' Association of India (SEA), Adani-Wilmar, Godrej Agrovet limited to discuss the multifaceted benefits of palm oil and its role in India's edible oil landscape. The event also addressed India's growing reliance on palm oil, which now exceeds 38% of the country's total edible oil consumption. To meet this demand, plans were outlined to expand oil palm cultivation area by an additional 0.6 million hectares by 2025-26. This expansion is expected to significantly boost domestic production, with projections indicating that crude palm oil production could reach 1.12 million tonnes by 2025-26 and further increase to 2.8 million tonnes by 2029-30, marking a substantial step towards India's goal of self-sufficiency in edible oil production. Atul Chaturvedi, Chairman Asian Palm Oil Alliance, stated: “India, as the world's largest importer of palm oil, is committed to becoming self-sufficient in edible oil production. Palm oil has been a staple in various food and non-food products in India for centuries. However, in recent years, misleading reports about its impact on health, nutrition, and the environment have surfaced, causing harm to our farmers, especially smallholders, and negatively affecting our economy. This seminar aims to change public perceptions about palm oil by presenting scientifically accurate information.” More Northlines
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Johari suggests reinvesting windfall tax in oil palm replanting
The plantation and commodities minister says he will work with the finance ministry and the Malaysian Palm Oil Board to review the tax.
KUALA LUMPUR: Plantation and commodities minister Johari Ghani has proposed that the windfall tax derived from the country’s palm oil industry be channelled back to oil palm growers for replanting.
Johari told the Dewan Rakyat today that the formula used to calculate windfall tax in the palm oil industry was no longer relevant due to the high costs incurred for each metric tonne of palm oil produced.
“Previously, the cost of producing one metric tonne of palm oil was RM1,800; today, it ranges from RM2,800 to RM3,200 depending on size,” he said.
“The windfall tax formula when costs were RM1,800 might have been appropriate, but now with costs ranging from RM2,800 to RM3,200, it may no longer be suitable.
“We will work with the Malaysian Palm Oil Board to review the tax to ensure that every ringgit we collect is returned to the planters for replanting,” he said, adding that he would also raise the matter with the finance ministry.
He was responding to a question by Bakri Jamaluddin (PN-Tangga Batu) about whether the ministry was willing to return windfall tax collections to palm oil industry players.
In the budget for 2022, the government revised the windfall tax for local palm oil producers to a standard 3% levy when crude palm oil (CPO) prices exceeded RM3,000 per tonne in Peninsular Malaysia and surpassed RM3,500 per tonne in Sabah and Sarawak – the largest palm oil producing states in the country. More FMT
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July 01, 2024
New EU Deforestation Regulation: Deadline Fast Approaching
Comments by Allison Kopf who is the CEO of TRACT, a sustainability measurement platform, whose foundation is traceability in supply chains. TRACT provides EUDR compliance capability.
Farming and agricultural business in the UK who export produce into the EU may be affected by the EUDR legislation – the compliance deadline for which is December 2024. The regulations specify seven commodities within its framework, many of which are not produced in the UK. If, however, a company exports beef or timber to the EU, the regulations will apply and it’s important to understand the implications and how to prepare. Although the deadline is only months away, there are companies and technology that can help.
Climate change has been blamed for the floods that have plagued the UK’s rural areas over the last winter and spring and its effects are proving devastating to farmers. So much so that, in the UK, the Energy and Climate Intelligence Unit (ECIU) projects a 17.5% reduction in overall production compared to 2023 for winter wheat, winter barley, spring barley, oats and oilseed rape. And of course, extreme weather patterns are impacting people, animals and businesses all over the world.
In an effort to halt deforestation – which plays a major role in contributing to climate change – the European Union has introduced its Regulation on Deforestation-free products (the EUDR). In response, any company that imports certain commodities or products into the EU, needs to prepare for significant change in how they manage these imports. More FarmingUK
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HALF A CENTURY OF PALM OIL EXCELLENCE IN CHINA
PUTRAJAYA, June 30 (Bernama) -- As 2024 marks five decades of diplomatic relations between Putrajaya and Beijing, it's noteworthy that Malaysia holds the distinction of being China's inaugural palm oil exporter, a milestone achieved in the mid-1980s.
From seeds of friendship, these two Asian nations have established and sustained fruitful business rapport, expanding beyond crude palm oil exports to encompass strategic collaborations in downstream processing, with sustainability at its core.
The commemoration of Malaysia and China's 50th anniversary follows the historic Joint Communiqué signed by Second Prime Minister Tun Abdul Razak Hussein and His Excellency Chou En Lai on May 31, 1974.
Why China a key market for Malaysia?
Malaysian Palm Oil Council (MPOC) chief executive officer Belvinder Sron said with a population of 1.4 billion, China is undeniably an important market for Malaysia.
It generates significant demand for oils and fats, amounting to about 42.0 million tonnes annually, with 25 per cent to 30 per cent of this demand being met through imports.
“The growing demand and production deficit present substantial opportunities for Malaysia. The close geographical proximity between the two nations further enhances Malaysia's role in bridging any supply-demand gaps, particularly during periods when geopolitical factors disrupt the supply chain,” she told Bernama.
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Sabah to produce tocotrienols from palm oil by-product
KOTA KINABALU (June 30): Malaysia’s first facility utilizing refined palm oil by-products to produce tocotrienols is under construction in Kunak.
The plant is dedicated to refining and producing tocotrienols, marking a significant milestone in Sabah’s downstream palm oil industry.
It is owned by Kunak Refinery Sdn Bhd, a subsidiary of Sawit Kinabalu, which is linked to the Sabah state government’s investment in the palm oil industry.
Industrial Development and Entrepreneurship Datuk Phoong Jin Zhe recently inspected the construction of the plant.
Phoong and his delegation also toured an operational palm oil refinery.
Tocotrienols, a form of Super Vitamin E known for their potent antioxidant properties, are highly sought after by cosmetics manufacturers and supplement producers. These compounds are renowned for their health and therapeutic benefits, including combating cholesterol, cancer, stroke and aging.
Phoong revealed that the construction of the plant is currently 60% complete and is expected to be finished by mid-2025. The Borneo Post
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Indonesian palm oil giant Astra Agro Lestari accused of illegally cultivating forest estates, land grabbing
Alleged environmental and human rights violations by Indonesia’s second-largest palm oil producer implicate multinationals including Unilever, Olam, BlackRock and Jardine Matheson. The allegations come amid Indonesia’s push for better governance over its palm oil industry, which is the world’s largest. AAL denies any wrongdoing.
Indonesian palm oil company Astra Agro Lestari (AAL) illegally cultivated the crop inside national forest estates, seized land from farmers and intimidated human rights defenders as it has expanded its plantations, according to an investigation by environmental groups.
The report, released on Tuesday by Friends of the Earth (FOE) teams in Indonesia, the United States and the Netherlands, noted that previously investigated violations “appear to be more extensive than initially documented”.
AAL and its subsidiaries have been under scrutiny for environmental and human rights misdemeanours since 2022, following an earlier publication from FOE on the company’s impact, which have included land grabbing, and soil, air and water pollution. More Eco Business
New EU Deforestation Regulation: Deadline Fast Approaching
Comments by Allison Kopf who is the CEO of TRACT, a sustainability measurement platform, whose foundation is traceability in supply chains. TRACT provides EUDR compliance capability.
Farming and agricultural business in the UK who export produce into the EU may be affected by the EUDR legislation – the compliance deadline for which is December 2024. The regulations specify seven commodities within its framework, many of which are not produced in the UK. If, however, a company exports beef or timber to the EU, the regulations will apply and it’s important to understand the implications and how to prepare. Although the deadline is only months away, there are companies and technology that can help.
Climate change has been blamed for the floods that have plagued the UK’s rural areas over the last winter and spring and its effects are proving devastating to farmers. So much so that, in the UK, the Energy and Climate Intelligence Unit (ECIU) projects a 17.5% reduction in overall production compared to 2023 for winter wheat, winter barley, spring barley, oats and oilseed rape. And of course, extreme weather patterns are impacting people, animals and businesses all over the world.
In an effort to halt deforestation – which plays a major role in contributing to climate change – the European Union has introduced its Regulation on Deforestation-free products (the EUDR). In response, any company that imports certain commodities or products into the EU, needs to prepare for significant change in how they manage these imports. More FarmingUK
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HALF A CENTURY OF PALM OIL EXCELLENCE IN CHINA
PUTRAJAYA, June 30 (Bernama) -- As 2024 marks five decades of diplomatic relations between Putrajaya and Beijing, it's noteworthy that Malaysia holds the distinction of being China's inaugural palm oil exporter, a milestone achieved in the mid-1980s.
From seeds of friendship, these two Asian nations have established and sustained fruitful business rapport, expanding beyond crude palm oil exports to encompass strategic collaborations in downstream processing, with sustainability at its core.
The commemoration of Malaysia and China's 50th anniversary follows the historic Joint Communiqué signed by Second Prime Minister Tun Abdul Razak Hussein and His Excellency Chou En Lai on May 31, 1974.
Why China a key market for Malaysia?
Malaysian Palm Oil Council (MPOC) chief executive officer Belvinder Sron said with a population of 1.4 billion, China is undeniably an important market for Malaysia.
It generates significant demand for oils and fats, amounting to about 42.0 million tonnes annually, with 25 per cent to 30 per cent of this demand being met through imports.
“The growing demand and production deficit present substantial opportunities for Malaysia. The close geographical proximity between the two nations further enhances Malaysia's role in bridging any supply-demand gaps, particularly during periods when geopolitical factors disrupt the supply chain,” she told Bernama.
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Sabah to produce tocotrienols from palm oil by-product
KOTA KINABALU (June 30): Malaysia’s first facility utilizing refined palm oil by-products to produce tocotrienols is under construction in Kunak.
The plant is dedicated to refining and producing tocotrienols, marking a significant milestone in Sabah’s downstream palm oil industry.
It is owned by Kunak Refinery Sdn Bhd, a subsidiary of Sawit Kinabalu, which is linked to the Sabah state government’s investment in the palm oil industry.
Industrial Development and Entrepreneurship Datuk Phoong Jin Zhe recently inspected the construction of the plant.
Phoong and his delegation also toured an operational palm oil refinery.
Tocotrienols, a form of Super Vitamin E known for their potent antioxidant properties, are highly sought after by cosmetics manufacturers and supplement producers. These compounds are renowned for their health and therapeutic benefits, including combating cholesterol, cancer, stroke and aging.
Phoong revealed that the construction of the plant is currently 60% complete and is expected to be finished by mid-2025. The Borneo Post
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Indonesian palm oil giant Astra Agro Lestari accused of illegally cultivating forest estates, land grabbing
Alleged environmental and human rights violations by Indonesia’s second-largest palm oil producer implicate multinationals including Unilever, Olam, BlackRock and Jardine Matheson. The allegations come amid Indonesia’s push for better governance over its palm oil industry, which is the world’s largest. AAL denies any wrongdoing.
Indonesian palm oil company Astra Agro Lestari (AAL) illegally cultivated the crop inside national forest estates, seized land from farmers and intimidated human rights defenders as it has expanded its plantations, according to an investigation by environmental groups.
The report, released on Tuesday by Friends of the Earth (FOE) teams in Indonesia, the United States and the Netherlands, noted that previously investigated violations “appear to be more extensive than initially documented”.
AAL and its subsidiaries have been under scrutiny for environmental and human rights misdemeanours since 2022, following an earlier publication from FOE on the company’s impact, which have included land grabbing, and soil, air and water pollution. More Eco Business
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CSPO Watch July 2024