Palm oil news. October 2023

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For all the news on the global palm oil industry. October 2023
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October 31, 2023
Press Statement H. E. Retno L. P. Marsudi Minister for Foreign Affairs of the Republic of Indonesia on the Occasion of the Working Visit of H. E. Hanke Bruins Slot Minister for Foreign Affairs Kingdom of the Netherlands, Jakarta 31 October 2023
Minister Bruins Slot, Dearn Hanke, welcome to Jakarta.
It is an honour for me to host your first ever visit to Indonesia as the Foreign Minister of the Netherlands.
But this is NOT our first meeting.
We met in New York on the sidelines of the UNGA in September.
And we also met again in New York just last week on the sidelines of the UNSC debate on Gaza.
Colleagues,
The Netherlands is one of the most important partners for Indonesia.
Mutual respect and mutual benefits embodied in our bilateral relations including respect to sovereignty and territorial integrity.
This year marks a decade of the two countries' Comprehensive Partnership which started in 2013.
I am glad to observe the Partnership has grown stronger over the past decade marked by the increase of high-level visits and initiatives and the signing of more than 30 bilateral treaties.
I am very delighted that today Minister Bruins Slot and I have jointly launched the Plan of Actions of the Comprehensive Partnership for 2024-2025. KemluID
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Indonesia Seeks to Boost Palm Oil Export to EU Member Lithuania
Jakarta. Indonesia is telling Lithuania that its palm oil is sustainable, while saying that its top commodity has met the national sustainability standards.
Foreign Affairs Minister Retno Marsudi hosted a bilateral meeting with her Lithuanian counterpart Gabrielius Landsbergis in her Jakarta office on Monday. Economic cooperation was high on the agenda.
During the trade talks, Retno had brought up Indonesian exports of palm oil, which she said was sustainably produced. Indonesia also stated that hundreds of its plantations had gotten the Indonesian Sustainable Palm Oil or ISPO certification. This is the country’s national sustainability certification scheme for palm oil, as the name suggests.
“I welcome Indonesian palm oil becoming one of the top export commodities to Lithuania,” Retno said at a press briefing shortly after her meeting with Landsbergis. Jakarta Globe
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Dutch PM Mark Rutte arrives for two-day working visit to Malaysia
KUALA LUMPUR – The Prime Minister of the Netherlands Mark Rutte arrived here today for a two-day working visit to Malaysia.
The special aircraft carrying Rutte and delegation landed at Sultan Abdul Aziz Shah Airport, Subang, here at 3.35 this evening.
The arrival of Rutte was received by Deputy Foreign Minister Datuk Mohamad Alamin and the Dutch Prime Minister later inspected a static guard of honour mounted by 28 officers and men from the First Battalion of the Royal Ranger Regiment (Ceremonial Infantry) led by Captain Amirul Akmal Osman.
Rutte is scheduled to hold a meeting with Prime Minister Datuk Seri Anwar Ibrahim tomorrow where the two leaders would evaluate the progress of bilateral ties especially cooperation in trade, investment, cultural exchange, palm oil, agriculture and agricommodity and discuss the issue of Islamphobia.
In the meeting, both leaders are expected to exchange views on regional and international issues of mutual interest.
Rutte will also hold a meeting with Deputy Prime Minister Datuk Seri Fadillah Yusof who is also the Minister of Plantation and Commodities and take part in a symbolic planting of an oil palm tree to symbolize the close cooperation between the two countries in the palm oil sector. The Malaysian Reserve
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Malaysian palm oil funds relieving pressures on biodiversity
The palm oil industry in Malaysia has played a significant role in the country’s economic growth, contributing to its status as one of the most important commodity crops, although there have been concerns about its environmental impact.
Based on the United Nations Development Programme’s (UNDP) data, Malaysia’s palm oil industry has grown into a major economic force in the country. It is its fourth largest contributor and an employer to nearly a million people.
According to global data and business intelligence platform Oil World, Malaysia came in second place for the export volume of palm oil worldwide in 2022/23, with around 15.9 million tonnes in palm oil exports.
Indonesia was the leading palm oil exporting country with an export volume of about 28.3 million tonnes.
Conserving biodiversity
Acknowledging the palm oil industry’s substantial growth presents an opportunity to implement positive changes for the benefit of mother nature, the Malaysian Palm Oil Council (MPOC) put its foot forward to strike a balance between development and the conservation of Sabah’s protected species such as the orangutan, banteng, the Bornean pygmy elephant, and other native wildlife. The Star
Press Statement H. E. Retno L. P. Marsudi Minister for Foreign Affairs of the Republic of Indonesia on the Occasion of the Working Visit of H. E. Hanke Bruins Slot Minister for Foreign Affairs Kingdom of the Netherlands, Jakarta 31 October 2023
Minister Bruins Slot, Dearn Hanke, welcome to Jakarta.
It is an honour for me to host your first ever visit to Indonesia as the Foreign Minister of the Netherlands.
But this is NOT our first meeting.
We met in New York on the sidelines of the UNGA in September.
And we also met again in New York just last week on the sidelines of the UNSC debate on Gaza.
Colleagues,
The Netherlands is one of the most important partners for Indonesia.
Mutual respect and mutual benefits embodied in our bilateral relations including respect to sovereignty and territorial integrity.
This year marks a decade of the two countries' Comprehensive Partnership which started in 2013.
I am glad to observe the Partnership has grown stronger over the past decade marked by the increase of high-level visits and initiatives and the signing of more than 30 bilateral treaties.
I am very delighted that today Minister Bruins Slot and I have jointly launched the Plan of Actions of the Comprehensive Partnership for 2024-2025. KemluID
---------
Indonesia Seeks to Boost Palm Oil Export to EU Member Lithuania
Jakarta. Indonesia is telling Lithuania that its palm oil is sustainable, while saying that its top commodity has met the national sustainability standards.
Foreign Affairs Minister Retno Marsudi hosted a bilateral meeting with her Lithuanian counterpart Gabrielius Landsbergis in her Jakarta office on Monday. Economic cooperation was high on the agenda.
During the trade talks, Retno had brought up Indonesian exports of palm oil, which she said was sustainably produced. Indonesia also stated that hundreds of its plantations had gotten the Indonesian Sustainable Palm Oil or ISPO certification. This is the country’s national sustainability certification scheme for palm oil, as the name suggests.
“I welcome Indonesian palm oil becoming one of the top export commodities to Lithuania,” Retno said at a press briefing shortly after her meeting with Landsbergis. Jakarta Globe
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Dutch PM Mark Rutte arrives for two-day working visit to Malaysia
KUALA LUMPUR – The Prime Minister of the Netherlands Mark Rutte arrived here today for a two-day working visit to Malaysia.
The special aircraft carrying Rutte and delegation landed at Sultan Abdul Aziz Shah Airport, Subang, here at 3.35 this evening.
The arrival of Rutte was received by Deputy Foreign Minister Datuk Mohamad Alamin and the Dutch Prime Minister later inspected a static guard of honour mounted by 28 officers and men from the First Battalion of the Royal Ranger Regiment (Ceremonial Infantry) led by Captain Amirul Akmal Osman.
Rutte is scheduled to hold a meeting with Prime Minister Datuk Seri Anwar Ibrahim tomorrow where the two leaders would evaluate the progress of bilateral ties especially cooperation in trade, investment, cultural exchange, palm oil, agriculture and agricommodity and discuss the issue of Islamphobia.
In the meeting, both leaders are expected to exchange views on regional and international issues of mutual interest.
Rutte will also hold a meeting with Deputy Prime Minister Datuk Seri Fadillah Yusof who is also the Minister of Plantation and Commodities and take part in a symbolic planting of an oil palm tree to symbolize the close cooperation between the two countries in the palm oil sector. The Malaysian Reserve
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Malaysian palm oil funds relieving pressures on biodiversity
The palm oil industry in Malaysia has played a significant role in the country’s economic growth, contributing to its status as one of the most important commodity crops, although there have been concerns about its environmental impact.
Based on the United Nations Development Programme’s (UNDP) data, Malaysia’s palm oil industry has grown into a major economic force in the country. It is its fourth largest contributor and an employer to nearly a million people.
According to global data and business intelligence platform Oil World, Malaysia came in second place for the export volume of palm oil worldwide in 2022/23, with around 15.9 million tonnes in palm oil exports.
Indonesia was the leading palm oil exporting country with an export volume of about 28.3 million tonnes.
Conserving biodiversity
Acknowledging the palm oil industry’s substantial growth presents an opportunity to implement positive changes for the benefit of mother nature, the Malaysian Palm Oil Council (MPOC) put its foot forward to strike a balance between development and the conservation of Sabah’s protected species such as the orangutan, banteng, the Bornean pygmy elephant, and other native wildlife. The Star
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October 30, 2023
Malaysian Sustainable palm oil: Nearly 500k smallholders to become compliant with platform that traces transactions
KUALA LUMPUR: Nearly 500,000 smallholders in the country is expected to be connected to a platform that will trace transactions, helping them to comply with the criteria and traceability requirements for sustainability certification.
This is thanks to a new traceability platform that will soon be laucnhed by the Malaysian Palm Oil Board (MPOB).
The traceability platform is for a data collection system that records and tracks transaction details of palm oil products and is also in preparation for compliance with European Union (EU) legislation.
"We are currently in the final stage of developing this new traceability system to streamline the palm oil industry," MPOB director-general Datuk Ahmad Parveez Ghulam Kadir said.
The system involves distinct licences tailored for key players, including mills and dealers, all mandated to furnish it with comprehensive reports.
"These essential data points will be seamlessly integrated into the new system framework," he added.
As smallholders engage with dealers during transactions, the latter will employ a dedicated app on the system platform. This innovative approach ensures that all smallholder-to-dealer sales are funneled through the app.
"For instance, information such as 'I procured this palm oil batch from smallholder A, complete with this licence number' will be meticulously logged into the system," he further explained.
Once the FFB or palm oil reaches the mills, each mill must document the specific dealer source.
Considering that a dealer may have got oil from numerous smallholders, perhaps as many as 10 or 20, keeping these records is important to make sure everything runs smoothly in the system.
Each group of players, from millers to dealers, must perform their respective roles and undertake responsibility to enable traceability of all activities throughout the palm oil supply chain.
MPOB helps to display the information of related companies throughout the supply chain, starting from the source of suppliers such as FFB to exporters of palm oil.
"This is why we built this system, to facilitate accurate data capture of FFB. Each dealer is equipped with their own device to record information and ensure the details are accurate and correct as they move through the various stages of the supply chain," Ahmad Parveez told Business Times in a recent interview. New Straits Times
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STRENGTHENING BUSINESS PARTNERSHIP BETWEEN MALAYSIA AND INDIA THROUGH EXPORT ACCELERATION MISSION (EAM) TO INDIA
MUMBAI, India, Oct. 30, 2023 /PRNewswire/ -- Malaysia External Trade Development Corporation (MATRADE), Malaysia's National Trade Promotion Agency is spearheading Export Acceleration Mission (EAM) to Mumbai, India from 30 Oct to 1 Nov 2023. The objective of the programme is to provide a networking platform as well as to build a business partnership between Malaysian and Indian business community.
The Export Acceleration Mission (EAM) is initiated by MATRADE in order to link Malaysian companies with foreign partners as well as encourage them to explore trade opportunities aboard. MATRADE will also organize the Export Acceleration Mission (EAM) to Chennai from 1 – 3 Nov 2023.
A total of nineteen (19) Malaysian companies under MATRADE from sectors such as food & beverage, IT business solutions, pharmaceuticals, oil & gas, services will be participating in the mission which aims to boost exports of Malaysian products and services in Maharashtra State and India generally.
During the mission, MATRADE through its Mumbai office will be coordinating business meetings with leading importers and buyers. Complementing this, programmes that have been arranged for the Malaysian companies include briefing on export opportunities in India by MATRADE Trade Consul in Mumbai and sharing experience on doing business in India from relevant association. Among programmes planned during the mission includes business meetings, visit and networking session. MATRADE encourages Indian businesses to meet with Malaysian companies to explore potential business opportunities. Newswire
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Nigeria-Hope Rises for Air Peace, Max Air, Others As Indonesia Launches 1st Commercial Flight Using Palm Oil
Indonesia flag carrier Garuda has flown its first commercial flight using palm oil-blended aviation fuel This will come as good news for Nigerian airline operators such as Air Peace Max Air, who are battling with a high cost of aviation fuel Checks show a litre of aviation fuel is currently sold at N1,000 per litre; palm oil could be a viable alternative
Legit.ng reported that Airline operators have said Nigeria is mature enough to find alternatives for aviation fuel, also known as JetAI, considering the high cost of imports. The operators called on the Nigerian government Wednesday, October 18, 2023, in Abuja at a meeting on developing and using Sustainable Aviation Fuel (SAF), Low Carbon Available Fuel, and other transparent fuel sources in Nigeria. Source: Legit.ng Read more: https://www.legit.ng/business-economy/industry/1560931-first-commercial-flight-using-palm-oil-100-passengers-successfully-lands/
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Malaysian Sustainable palm oil: Nearly 500k smallholders to become compliant with platform that traces transactions
KUALA LUMPUR: Nearly 500,000 smallholders in the country is expected to be connected to a platform that will trace transactions, helping them to comply with the criteria and traceability requirements for sustainability certification.
This is thanks to a new traceability platform that will soon be laucnhed by the Malaysian Palm Oil Board (MPOB).
The traceability platform is for a data collection system that records and tracks transaction details of palm oil products and is also in preparation for compliance with European Union (EU) legislation.
"We are currently in the final stage of developing this new traceability system to streamline the palm oil industry," MPOB director-general Datuk Ahmad Parveez Ghulam Kadir said.
The system involves distinct licences tailored for key players, including mills and dealers, all mandated to furnish it with comprehensive reports.
"These essential data points will be seamlessly integrated into the new system framework," he added.
As smallholders engage with dealers during transactions, the latter will employ a dedicated app on the system platform. This innovative approach ensures that all smallholder-to-dealer sales are funneled through the app.
"For instance, information such as 'I procured this palm oil batch from smallholder A, complete with this licence number' will be meticulously logged into the system," he further explained.
Once the FFB or palm oil reaches the mills, each mill must document the specific dealer source.
Considering that a dealer may have got oil from numerous smallholders, perhaps as many as 10 or 20, keeping these records is important to make sure everything runs smoothly in the system.
Each group of players, from millers to dealers, must perform their respective roles and undertake responsibility to enable traceability of all activities throughout the palm oil supply chain.
MPOB helps to display the information of related companies throughout the supply chain, starting from the source of suppliers such as FFB to exporters of palm oil.
"This is why we built this system, to facilitate accurate data capture of FFB. Each dealer is equipped with their own device to record information and ensure the details are accurate and correct as they move through the various stages of the supply chain," Ahmad Parveez told Business Times in a recent interview. New Straits Times
---------
STRENGTHENING BUSINESS PARTNERSHIP BETWEEN MALAYSIA AND INDIA THROUGH EXPORT ACCELERATION MISSION (EAM) TO INDIA
MUMBAI, India, Oct. 30, 2023 /PRNewswire/ -- Malaysia External Trade Development Corporation (MATRADE), Malaysia's National Trade Promotion Agency is spearheading Export Acceleration Mission (EAM) to Mumbai, India from 30 Oct to 1 Nov 2023. The objective of the programme is to provide a networking platform as well as to build a business partnership between Malaysian and Indian business community.
The Export Acceleration Mission (EAM) is initiated by MATRADE in order to link Malaysian companies with foreign partners as well as encourage them to explore trade opportunities aboard. MATRADE will also organize the Export Acceleration Mission (EAM) to Chennai from 1 – 3 Nov 2023.
A total of nineteen (19) Malaysian companies under MATRADE from sectors such as food & beverage, IT business solutions, pharmaceuticals, oil & gas, services will be participating in the mission which aims to boost exports of Malaysian products and services in Maharashtra State and India generally.
During the mission, MATRADE through its Mumbai office will be coordinating business meetings with leading importers and buyers. Complementing this, programmes that have been arranged for the Malaysian companies include briefing on export opportunities in India by MATRADE Trade Consul in Mumbai and sharing experience on doing business in India from relevant association. Among programmes planned during the mission includes business meetings, visit and networking session. MATRADE encourages Indian businesses to meet with Malaysian companies to explore potential business opportunities. Newswire
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Nigeria-Hope Rises for Air Peace, Max Air, Others As Indonesia Launches 1st Commercial Flight Using Palm Oil
Indonesia flag carrier Garuda has flown its first commercial flight using palm oil-blended aviation fuel This will come as good news for Nigerian airline operators such as Air Peace Max Air, who are battling with a high cost of aviation fuel Checks show a litre of aviation fuel is currently sold at N1,000 per litre; palm oil could be a viable alternative
Legit.ng reported that Airline operators have said Nigeria is mature enough to find alternatives for aviation fuel, also known as JetAI, considering the high cost of imports. The operators called on the Nigerian government Wednesday, October 18, 2023, in Abuja at a meeting on developing and using Sustainable Aviation Fuel (SAF), Low Carbon Available Fuel, and other transparent fuel sources in Nigeria. Source: Legit.ng Read more: https://www.legit.ng/business-economy/industry/1560931-first-commercial-flight-using-palm-oil-100-passengers-successfully-lands/
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October 29, 2023
Indonesia makes history, becomes first country to use palm oil-blended jet fuel for commercial flight
As a big player in palm oil production, Indonesia has set a global record with its first commercial flight using palm oil-blended jet fuel.
This breakthrough has widened the usage of biofuels just as it increased the possibility of cutting down on fuel imports.
The Boeing 737-800NG aircraft operated by flag carrier Garuda Indonesia for the first flight, carried more than 100 passengers from the capital Jakarta to Surakarta city.
The CEO Irfan Setiaputra said that the aircraft travelled about 550 kilometres (342 miles) away from Garuda, Indonesia.
He added that the plane was set to return to Jakarta later on Friday.
It was learnt that Garuda conducted several tests including a flight test on the new fuel earlier this month with an engine ground test in August.
The palm-oil blended jet fuel is produced by Indonesian state energy firm PT Pertamina at its Cilacap refinery, using hydroprocessed esters and fatty acid technology and is made of refined bleached deodorized palm kernel oil. The Street Journal
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Malaysian palm oil up on higher Dalian prices
SINGAPORE: Malaysian palm oil rose for a third consecutive session on Friday, with strength in China’s edible oil market supporting prices, although lacklustre demand for the tropical product limited the upside potential in prices.
The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange closed up 15 ringgit, or 0.4%, to 3,777 ringgit a metric ton. “Robust performance of the Dalian market has contributed to the upward trend,” said Lingam Supramaniam, director with vegetable oil brokerage Pelindung Bestari in Kuala Lumpur.
“The demand is however subdued. While refiners are attempting to secure bids, potential buyers are currently holding out for more favourable prices than what is typically seen in the market.”
The active pace of the US harvest of soybeans added pressure on prices. Farmers had harvested three-quarters of their crop by Sunday, according to weekly data from the US Department of Agriculture. The figures, roughly in line with trade expectations, were ahead of the five-year average pace for each crop. Business Recorder
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Fadillah confident M’sian Sustainable Palm Oil will be recognised as part of EU Deforestation Regulation
BINTULU (Oct 28): Deputy Prime Minister Datuk Seri Fadillah Yusof stated that the second meeting regarding the European Union Deforestation Regulation (EUDR) in December is expected to recognise the Malaysian Sustainable Palm Oil (MSPO) certification as part of the EUDR audit process.
Fadillah, who is also plantation and commodities minister, said the recognition of the MSPO aims to ensure that palm oil cultivation activities in the country do not affect the environment and are produced based on good and sustainable agricultural practices.
“Our commitment to the world is that (the area of) our forests must not be less than 50 per cent, so we have to balance the need for (oil palm) production.
“At the same time, we do not sacrifice our environment. This is our commitment for future generations,” he told reporters after attending the Sarawak smallholder MSPO strengthening programme in Sungai Selad, Sebemban, about 30 kilometres from here, today.
Fadillah said the first EUDR meeting in Jakarta, Indonesia, on August 4, had yielded some positive results for Malaysia but the second meeting in Kuala Lumpur will finalise whether the MSPO will be accepted as part of the audit process under the EUDR.
In his speech at the programme, Fadillah asked smallholders in Sarawak to join the Sustainable Oil Palm Growers Cooperatives (KPSM) to enable them to apply for MSPO recognition as a group.
He said KPSM could help to ensure that these smallholders cultivate their oil palm plantations using good farming methods and comply with the conditions under the MSPO. The Borneo Post
Indonesia makes history, becomes first country to use palm oil-blended jet fuel for commercial flight
As a big player in palm oil production, Indonesia has set a global record with its first commercial flight using palm oil-blended jet fuel.
This breakthrough has widened the usage of biofuels just as it increased the possibility of cutting down on fuel imports.
The Boeing 737-800NG aircraft operated by flag carrier Garuda Indonesia for the first flight, carried more than 100 passengers from the capital Jakarta to Surakarta city.
The CEO Irfan Setiaputra said that the aircraft travelled about 550 kilometres (342 miles) away from Garuda, Indonesia.
He added that the plane was set to return to Jakarta later on Friday.
It was learnt that Garuda conducted several tests including a flight test on the new fuel earlier this month with an engine ground test in August.
The palm-oil blended jet fuel is produced by Indonesian state energy firm PT Pertamina at its Cilacap refinery, using hydroprocessed esters and fatty acid technology and is made of refined bleached deodorized palm kernel oil. The Street Journal
---------
Malaysian palm oil up on higher Dalian prices
SINGAPORE: Malaysian palm oil rose for a third consecutive session on Friday, with strength in China’s edible oil market supporting prices, although lacklustre demand for the tropical product limited the upside potential in prices.
The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange closed up 15 ringgit, or 0.4%, to 3,777 ringgit a metric ton. “Robust performance of the Dalian market has contributed to the upward trend,” said Lingam Supramaniam, director with vegetable oil brokerage Pelindung Bestari in Kuala Lumpur.
“The demand is however subdued. While refiners are attempting to secure bids, potential buyers are currently holding out for more favourable prices than what is typically seen in the market.”
The active pace of the US harvest of soybeans added pressure on prices. Farmers had harvested three-quarters of their crop by Sunday, according to weekly data from the US Department of Agriculture. The figures, roughly in line with trade expectations, were ahead of the five-year average pace for each crop. Business Recorder
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Fadillah confident M’sian Sustainable Palm Oil will be recognised as part of EU Deforestation Regulation
BINTULU (Oct 28): Deputy Prime Minister Datuk Seri Fadillah Yusof stated that the second meeting regarding the European Union Deforestation Regulation (EUDR) in December is expected to recognise the Malaysian Sustainable Palm Oil (MSPO) certification as part of the EUDR audit process.
Fadillah, who is also plantation and commodities minister, said the recognition of the MSPO aims to ensure that palm oil cultivation activities in the country do not affect the environment and are produced based on good and sustainable agricultural practices.
“Our commitment to the world is that (the area of) our forests must not be less than 50 per cent, so we have to balance the need for (oil palm) production.
“At the same time, we do not sacrifice our environment. This is our commitment for future generations,” he told reporters after attending the Sarawak smallholder MSPO strengthening programme in Sungai Selad, Sebemban, about 30 kilometres from here, today.
Fadillah said the first EUDR meeting in Jakarta, Indonesia, on August 4, had yielded some positive results for Malaysia but the second meeting in Kuala Lumpur will finalise whether the MSPO will be accepted as part of the audit process under the EUDR.
In his speech at the programme, Fadillah asked smallholders in Sarawak to join the Sustainable Oil Palm Growers Cooperatives (KPSM) to enable them to apply for MSPO recognition as a group.
He said KPSM could help to ensure that these smallholders cultivate their oil palm plantations using good farming methods and comply with the conditions under the MSPO. The Borneo Post
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October 28, 2023
India extends halt on futures trading in key farm commodities to December 2024
MUMBAI: India on Friday extended the suspension of trading in derivative contracts of key farm commodities for the second time, to run into late 2024, as the world's largest importer of vegetable oils and a major producer of wheat and rice seeks to curb food inflation.
The Securities and Exchange Board of India (SEBI) in 2021 ordered a year-long suspension of futures trading in key farm commodities, a dramatic step since allowing futurestrading in 2003.
That suspension was last year extended until Dec. 20, 2023.
In a notification issued late on Friday, SEBI said the suspension of trading in futures contracts would now continue until Dec. 20, 2024, on soybean and its derivatives, crude palm oil, wheat, paddy rice, chickpea, green gram and rapeseed mustard.
"It's a very unfortunate move," said Sandeep Bajoria, CEO of Sunvin Group, a vegetable oil brokerage.
"The Indian vegetable oil industry is in dire need of a hedg ..
Read more at:
http://timesofindia.indiatimes.com/articleshow/104762439.cms?from=mdr&utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
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Indonesia launches 1st commercial flight with palm oil-blended fuel
JAKARTA, Oct. 27 (Xinhua) -- Indonesia's flag carrier Garuda Indonesia said on Friday that it succeeded in flying a commercial passenger plane using aviation fuel blended with palm oil, the company's president director said.
The Boeing 737-800NG aircraft with more than 100 people aboard took off from the Soekarno-Hatta International Airport in Banten province on Friday to the Adi Soemarmo International Airport in Central Java, about 550 km away.
"This is the first time. After having carried out a successful trial, we used biofuel for a commercial flight," Garuda Indonesia President Director Irfan Setiaputra said at the Soekarno-Hatta International Airport.
The alternative jet fuel is produced by Indonesia's state-owned energy firm PT Pertamina. Indonesia conducted its first test flight with a similar type of fuel on a plane in 2021.
As the world's biggest producer of palm oil, the Southeast Asian country is making efforts to widen the use of biofuels to cut fuel imports. Xinhua
India extends halt on futures trading in key farm commodities to December 2024
MUMBAI: India on Friday extended the suspension of trading in derivative contracts of key farm commodities for the second time, to run into late 2024, as the world's largest importer of vegetable oils and a major producer of wheat and rice seeks to curb food inflation.
The Securities and Exchange Board of India (SEBI) in 2021 ordered a year-long suspension of futures trading in key farm commodities, a dramatic step since allowing futurestrading in 2003.
That suspension was last year extended until Dec. 20, 2023.
In a notification issued late on Friday, SEBI said the suspension of trading in futures contracts would now continue until Dec. 20, 2024, on soybean and its derivatives, crude palm oil, wheat, paddy rice, chickpea, green gram and rapeseed mustard.
"It's a very unfortunate move," said Sandeep Bajoria, CEO of Sunvin Group, a vegetable oil brokerage.
"The Indian vegetable oil industry is in dire need of a hedg ..
Read more at:
http://timesofindia.indiatimes.com/articleshow/104762439.cms?from=mdr&utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
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Indonesia launches 1st commercial flight with palm oil-blended fuel
JAKARTA, Oct. 27 (Xinhua) -- Indonesia's flag carrier Garuda Indonesia said on Friday that it succeeded in flying a commercial passenger plane using aviation fuel blended with palm oil, the company's president director said.
The Boeing 737-800NG aircraft with more than 100 people aboard took off from the Soekarno-Hatta International Airport in Banten province on Friday to the Adi Soemarmo International Airport in Central Java, about 550 km away.
"This is the first time. After having carried out a successful trial, we used biofuel for a commercial flight," Garuda Indonesia President Director Irfan Setiaputra said at the Soekarno-Hatta International Airport.
The alternative jet fuel is produced by Indonesia's state-owned energy firm PT Pertamina. Indonesia conducted its first test flight with a similar type of fuel on a plane in 2021.
As the world's biggest producer of palm oil, the Southeast Asian country is making efforts to widen the use of biofuels to cut fuel imports. Xinhua
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October 27, 2023
Indonesia's flag carrier Garuda Tests First Commercial Flight On Biofuel to Cut Emissions
(Bloomberg) -- Indonesia’s flag carrier tested its first commercial flight using jet fuel mixed with palm oil to reduce carbon emissions.
The Garuda Indonesia plane flew from the capital Jakarta to Solo, President Joko Widodo’s hometown, on Friday using the J2.4 sustainable aviation fuel produced by PT Pertamina.
The government expects wider adoption of the biofuel in aviation to grow the market to about 1.1 trillion rupiah ($69 million) a year and pave way for exports. Palm-based fuel may offer a solution to the challenge of cleaning up emissions in the carbon-intensive industry, as countries around the world turn to subsidies and mandates for airlines to use less fossil fuel.
The sustainable fuel used on Friday’s flight was made by mixing 2.4% refined bleach deodorized palm kernel oil with jet fuel in PT Pertamina’s Cilacap refinery. The state-owned energy company can produce 1,350 kiloliters of the fuel a day, with plans to expand existing facilities to meet potential demand of 5 million kiloliters a year.
The fuel had been tested on a shorter flight earlier this month when the jet’s machine responded well and stayed in control. Garuda will run further trials on other types of engines, said President Director Irfan Setiaputra on Friday.
Indonesia, the world’s top palm oil producer, is already mandating a biodiesel program for land transportation this year to increase the use of palm oil content in diesel to 35%, the highest mix globally. More use of the tropical oil in transportation would cement the nation’s position as top palm consumer and potentially limit supply to the global market. Bloomberg
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Indonesia conducts first commercial flight using palm oil-blended jet fuel
JAKARTA, Oct 27 (Reuters) - Indonesia on Friday flew its first commercial flight using palm oil-blended jet fuel, as the world's biggest producer of the commodity pushes for wider use of biofuels to cut fuel imports.
Operated by flag carrier Garuda Indonesia, the Boeing 737-800NG aircraft carried more than 100 passengers from the capital Jakarta to Surakarta city about 550 kilometres (342 miles) away, Garuda Indonesia CEO Irfan Setiaputra said.
"We will discuss further with Pertamina, Energy Ministry and other parties to ensure this fuel is commercially reasonable," Irfan said during a ceremony, adding the plane was set to return to Jakarta later on Friday.
Garuda conducted several tests including a flight test on the new fuel earlier this month and an engine ground test in August.
The palm-oil blended jet fuel is produced by Indonesian state energy firm PT Pertamina (PERTM.UL) at its Cilacap refinery, using hydroprocessed esters and fatty acid (HEFA) technology and is made of refined bleached deodorized palm kernel oil.
Pertamina has said the palm-based fuel emits less atmosphere warming greenhouse gases compared with fossil fuels, and palm oil producing countries have called for the edible oil to be included in feedstock for the production of sustainable aviation fuel (SAF).
"In 2021, Pertamina successfully produced 2.0 SAF in its Cilacap unit using co-processing technology and was made of refined bleached deodorized palm kernel oil with production capacity 1,350 kilolitres per day," said Alfian Nasution, a director at Pertamina. Reuters
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Ivory Coast must speed up efforts on deforestation rules, EU says
ABIDJAN, Oct 26 (Reuters) - Ivory Coast must speed up efforts to make cocoa stocks destined for the European market comply with European Union (EU) deforestation law that will come into full effect from January 2025, the EU's ambassador to Ivory Coast said on Thursday.
Francesca Di Mauro told Reuters the world's top cocoa producer, which ships around 70% of its annual output to the EU, had some points of concern to the EU, especially around child labour, farming on protected forests, and the declassification of existing protected forests.
"Ivory Coast should not be tempted to declassify current protected forests where cocoa is produced to make them legal and compliant with the new European regulation," she said.
She added that Ivory Coast is considering transforming heavily degraded forests into agro-forest areas, and speed up reforestation to achieve its goal of doubling the forest cover from the current 10% to 20%.
The EU law requires importers of commodities such as coffee, cocoa, beef, soy, rubber and palm oil to produce a due diligence statement proving their goods do not contribute to the destruction of forests, or risk hefty fines.
Di Mauro said that when the regulation enters into force all cocoa supplies needs to comply.
"So, for those that are currently being purchased, the aim is to make sure they are ready to enter the European territory from January 2025," she said, adding that discussions on how to treat previous stocks were ongoing in Brussels and nothing has been decided.
Di Mauro said the EU was in intense and close negotiations on its standard on traceability and certification programme, but the West African nation needed to move faster. Reuters
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Indonesia's flag carrier Garuda Tests First Commercial Flight On Biofuel to Cut Emissions
(Bloomberg) -- Indonesia’s flag carrier tested its first commercial flight using jet fuel mixed with palm oil to reduce carbon emissions.
The Garuda Indonesia plane flew from the capital Jakarta to Solo, President Joko Widodo’s hometown, on Friday using the J2.4 sustainable aviation fuel produced by PT Pertamina.
The government expects wider adoption of the biofuel in aviation to grow the market to about 1.1 trillion rupiah ($69 million) a year and pave way for exports. Palm-based fuel may offer a solution to the challenge of cleaning up emissions in the carbon-intensive industry, as countries around the world turn to subsidies and mandates for airlines to use less fossil fuel.
The sustainable fuel used on Friday’s flight was made by mixing 2.4% refined bleach deodorized palm kernel oil with jet fuel in PT Pertamina’s Cilacap refinery. The state-owned energy company can produce 1,350 kiloliters of the fuel a day, with plans to expand existing facilities to meet potential demand of 5 million kiloliters a year.
The fuel had been tested on a shorter flight earlier this month when the jet’s machine responded well and stayed in control. Garuda will run further trials on other types of engines, said President Director Irfan Setiaputra on Friday.
Indonesia, the world’s top palm oil producer, is already mandating a biodiesel program for land transportation this year to increase the use of palm oil content in diesel to 35%, the highest mix globally. More use of the tropical oil in transportation would cement the nation’s position as top palm consumer and potentially limit supply to the global market. Bloomberg
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Indonesia conducts first commercial flight using palm oil-blended jet fuel
JAKARTA, Oct 27 (Reuters) - Indonesia on Friday flew its first commercial flight using palm oil-blended jet fuel, as the world's biggest producer of the commodity pushes for wider use of biofuels to cut fuel imports.
Operated by flag carrier Garuda Indonesia, the Boeing 737-800NG aircraft carried more than 100 passengers from the capital Jakarta to Surakarta city about 550 kilometres (342 miles) away, Garuda Indonesia CEO Irfan Setiaputra said.
"We will discuss further with Pertamina, Energy Ministry and other parties to ensure this fuel is commercially reasonable," Irfan said during a ceremony, adding the plane was set to return to Jakarta later on Friday.
Garuda conducted several tests including a flight test on the new fuel earlier this month and an engine ground test in August.
The palm-oil blended jet fuel is produced by Indonesian state energy firm PT Pertamina (PERTM.UL) at its Cilacap refinery, using hydroprocessed esters and fatty acid (HEFA) technology and is made of refined bleached deodorized palm kernel oil.
Pertamina has said the palm-based fuel emits less atmosphere warming greenhouse gases compared with fossil fuels, and palm oil producing countries have called for the edible oil to be included in feedstock for the production of sustainable aviation fuel (SAF).
"In 2021, Pertamina successfully produced 2.0 SAF in its Cilacap unit using co-processing technology and was made of refined bleached deodorized palm kernel oil with production capacity 1,350 kilolitres per day," said Alfian Nasution, a director at Pertamina. Reuters
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Ivory Coast must speed up efforts on deforestation rules, EU says
ABIDJAN, Oct 26 (Reuters) - Ivory Coast must speed up efforts to make cocoa stocks destined for the European market comply with European Union (EU) deforestation law that will come into full effect from January 2025, the EU's ambassador to Ivory Coast said on Thursday.
Francesca Di Mauro told Reuters the world's top cocoa producer, which ships around 70% of its annual output to the EU, had some points of concern to the EU, especially around child labour, farming on protected forests, and the declassification of existing protected forests.
"Ivory Coast should not be tempted to declassify current protected forests where cocoa is produced to make them legal and compliant with the new European regulation," she said.
She added that Ivory Coast is considering transforming heavily degraded forests into agro-forest areas, and speed up reforestation to achieve its goal of doubling the forest cover from the current 10% to 20%.
The EU law requires importers of commodities such as coffee, cocoa, beef, soy, rubber and palm oil to produce a due diligence statement proving their goods do not contribute to the destruction of forests, or risk hefty fines.
Di Mauro said that when the regulation enters into force all cocoa supplies needs to comply.
"So, for those that are currently being purchased, the aim is to make sure they are ready to enter the European territory from January 2025," she said, adding that discussions on how to treat previous stocks were ongoing in Brussels and nothing has been decided.
Di Mauro said the EU was in intense and close negotiations on its standard on traceability and certification programme, but the West African nation needed to move faster. Reuters
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October 26, 2023
Indonesia will lose 2.72 million hectares of palm oil plantations in crackdown on illegal plantations
YOGYAKARTA, PALM INDONESIA – The government has been asked to be more careful in its policy on settling oil palm plantations claimed in forest areas. This is because this regulation has the potential to cause Indonesia to lose 2.725 million hectares, which is equivalent to almost half of Malaysia's plantation area.
This concern was conveyed by the General Chairperson of the APKASINDO DPP, Dr. Gulat ME Manurung, MP, CIMA, speaking in the Indonesian Palm Oil Forum (FoSI) Podcast "Study of Policy Implementation in the Palm Oil Plantation Business Ecosystem", Tuesday (24 October 2023) at the Yogyakarta Instiper Campus.
Gulat's concerns refer to the issuance of a Decree from the Minister of Environment and Forestry (LHK) which contains data and information (DATIN) or abbreviated as SK Datin KLHK regarding business activities that are established in forest areas that do not have permits in the plantation sector.
Currently, the KLHK Datin Decree has been issued up to the 14th stage. From our calculations, the total number of corporations that have entered the Datin Decree is 1.963 million hectares (50.22% of the total 3.374 million hectares) and farmer groups are 483 thousand hectares (14.32 %). Sawit Indonesia
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MPOC bags RM182 mil potential sales during African buyers' visit
KUALA LUMPUR (Oct 25): The Malaysian Palm Oil Council (MPOC) has bagged total estimated potential sales of RM182 million during a visit by several African oils and fats companies recently.
MPOC chief executive officer Belvinder Sron said that via 112 meetings held with delegations from seven African countries, buyers had sourced products such as crude palm oil, refined bleached deodorised palm olein, both in consumer pack and bulk container, cooking oil, shortening, specialty fats, oleochemical products and palm wax.
She said Malaysian palm oil producers and palm oil product manufacturers were appreciative of MPOC’s efforts in bringing key industry members from important African markets.
"The industry members also commended the variety in the African buyers’ composition as there was interest in sourcing both bulk and packed products,” she said in a statement on Wednesday.
The 'Trade and Networking Visit for African Buyers' was organised by MPOC to reinforce the global expansion of Malaysian palm oil, one of the nation’s key export commodities. The Edge/ Bernama
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Cooking oil startup Zero Acre Farms to raise Series B next year
Zero Acre Farms, which aims to replace seed-based cooking oils with an alternative fermented from sugar cane, is eyeing a Series B in the second half of 2024, CEO Jeff Nobbs tells Axios exclusively.
Why it matters: Seed-based cooking oils have a high carbon footprint — both palm oil and soybean oil production are leading contributors to deforestation.
Driving the news: Zero Acre Farms has partnered with Texas-based burger chain Hopdaddy Burger Bar, which has pledged to go seed-oil free.
Indonesia will lose 2.72 million hectares of palm oil plantations in crackdown on illegal plantations
YOGYAKARTA, PALM INDONESIA – The government has been asked to be more careful in its policy on settling oil palm plantations claimed in forest areas. This is because this regulation has the potential to cause Indonesia to lose 2.725 million hectares, which is equivalent to almost half of Malaysia's plantation area.
This concern was conveyed by the General Chairperson of the APKASINDO DPP, Dr. Gulat ME Manurung, MP, CIMA, speaking in the Indonesian Palm Oil Forum (FoSI) Podcast "Study of Policy Implementation in the Palm Oil Plantation Business Ecosystem", Tuesday (24 October 2023) at the Yogyakarta Instiper Campus.
Gulat's concerns refer to the issuance of a Decree from the Minister of Environment and Forestry (LHK) which contains data and information (DATIN) or abbreviated as SK Datin KLHK regarding business activities that are established in forest areas that do not have permits in the plantation sector.
Currently, the KLHK Datin Decree has been issued up to the 14th stage. From our calculations, the total number of corporations that have entered the Datin Decree is 1.963 million hectares (50.22% of the total 3.374 million hectares) and farmer groups are 483 thousand hectares (14.32 %). Sawit Indonesia
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MPOC bags RM182 mil potential sales during African buyers' visit
KUALA LUMPUR (Oct 25): The Malaysian Palm Oil Council (MPOC) has bagged total estimated potential sales of RM182 million during a visit by several African oils and fats companies recently.
MPOC chief executive officer Belvinder Sron said that via 112 meetings held with delegations from seven African countries, buyers had sourced products such as crude palm oil, refined bleached deodorised palm olein, both in consumer pack and bulk container, cooking oil, shortening, specialty fats, oleochemical products and palm wax.
She said Malaysian palm oil producers and palm oil product manufacturers were appreciative of MPOC’s efforts in bringing key industry members from important African markets.
"The industry members also commended the variety in the African buyers’ composition as there was interest in sourcing both bulk and packed products,” she said in a statement on Wednesday.
The 'Trade and Networking Visit for African Buyers' was organised by MPOC to reinforce the global expansion of Malaysian palm oil, one of the nation’s key export commodities. The Edge/ Bernama
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Cooking oil startup Zero Acre Farms to raise Series B next year
Zero Acre Farms, which aims to replace seed-based cooking oils with an alternative fermented from sugar cane, is eyeing a Series B in the second half of 2024, CEO Jeff Nobbs tells Axios exclusively.
Why it matters: Seed-based cooking oils have a high carbon footprint — both palm oil and soybean oil production are leading contributors to deforestation.
Driving the news: Zero Acre Farms has partnered with Texas-based burger chain Hopdaddy Burger Bar, which has pledged to go seed-oil free.
- Beginning in September, the company's product was being tested in two Shake Shack locations as part of that chain's efforts to become more sustainable.
- Proceeds would fund a "2.0" version of Zero Acre's oil, he notes.
- It has a better fat profile, is liquid at room temperature, lasts longer when used in deep frying, and has a better taste than many of the widely used seed-based oils, according to Nobbs. Axios
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October 25, 2023
Indonesia prepares strategies to deal with EUDR: Ministry
Jakarta (ANTARA) - The Indonesian government is preparing various strategies to deal with the implementation of the European Union Deforestation-free Regulation (EUDR), the Coordinating Ministry for Economic Affairs stated.
According to the ministry's Deputy for Food and Agribusiness Coordination, Musdhalifah Machmud, the strategies are also being formulated with the aim of dismissing accusations that Indonesia's palm oil industry neglects sustainability aspects.
"We are currently devising strategies to respond to the accusations of our palm oil products not being sustainable," she remarked virtually during the 2023 Indonesian Palm Oil Research Week (PERISAI) event in Surabaya, East Java, on Wednesday.
Machmud explained that the first strategy concerns the government's effort to revise Presidential Regulation No. 44 of 2022 regarding the system of Indonesian sustainable palm oil plantation certification.
Machmud elaborated on the regulation, saying that it mandates business actors to obtain Indonesian Sustainable Palm Oil (ISPO) certificates. She remarked that the government plans to expand the regulation, so it can accommodate provisions related to sustainability aspects.
"We will soon expand the presidential regulation to accommodate sustainability provisions," she remarked. Antara News
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Indonesia’s oil palm smallholders need both state and EU support (commentary)
by Andre Barahamin on 25 October 2023
Indonesia’s is the world’s top palm oil producer, but the industry has long been associated with environmental ills such as deforestation and habitat destruction, with oil palm plantation expansion accounting for around 3.1 million hectares (7.7 million acres) of forest loss between 1990 and 2010. At the same time, the sector provides livelihoods for millions of Indonesians — approximately 2.6 million independent oil palm smallholders and their families, and around 16 million workers.
One of the biggest importers of Indonesian palm oil is the EU. In an effort to sever the link between its own market and global deforestation, the European bloc recently adopted the EU Deforestation-Free Regulation (EUDR), which requires companies trading in certain commodities, including palm oil, to ensure the goods do not result from recent deforestation or forest degradation.
While the intention behind the EUDR is noble, its impact on Indonesian smallholders will be devastating without addressing both the government and demand-side measures.
Why smallholders are important Mongabay
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Indonesia Can Sue EU over Protectionist Green Policy: Economist
Jakarta. An expert said Tuesday that Indonesia could file a lawsuit against the European Union (EU) at the World Trade Organization (WTO) for the bloc’s protectionist green policies.
The EU’s environment-related policies are sparking concerns in Indonesia. The EU’s anti-deforestation regulation -- also known by its acronym EUDR -- requires certain commodities such as palm oil to be deforestation-free before entering the European market. According to senior economist Mari Elka Pangestu, the EU could be imposing protectionist or import-restricting policies under the pretense of saving the planet.
“If we speak of protectionism, we are incredibly worried about Europe’s green policies. Are they really green or is this a hidden protectionism?” Mari, who formerly served as a managing director at the World Bank, told the 2023 BNI Investor Daily Summit at Hutan Kota by Plataran on Tuesday.
“We can take this matter to the WTO. We are aware how the dispute settlement is currently not functioning, but we need to push for non-discrimination and transparency principles to prevent protectionism,” the former trade minister said. Jakarta Globe
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Shocking: Palm oil watchdog takes five years to address and dismiss deforestation complaint
After a delay of almost five years to the day, the Roundtable on Sustainable Palm Oil (RSPO) has finally got around to addressing a complaint filed against a company linked to clearing Papuan rainforests.
EIA UK, together with Greenpeace, submitted the complaint back in October 2018, but it has taken until now for the RSPO to reach a conclusion, dismissing the complaint on the basis of insubstantial evidence.
The complaint related to breaches of the RSPO rules:
Indonesia prepares strategies to deal with EUDR: Ministry
Jakarta (ANTARA) - The Indonesian government is preparing various strategies to deal with the implementation of the European Union Deforestation-free Regulation (EUDR), the Coordinating Ministry for Economic Affairs stated.
According to the ministry's Deputy for Food and Agribusiness Coordination, Musdhalifah Machmud, the strategies are also being formulated with the aim of dismissing accusations that Indonesia's palm oil industry neglects sustainability aspects.
"We are currently devising strategies to respond to the accusations of our palm oil products not being sustainable," she remarked virtually during the 2023 Indonesian Palm Oil Research Week (PERISAI) event in Surabaya, East Java, on Wednesday.
Machmud explained that the first strategy concerns the government's effort to revise Presidential Regulation No. 44 of 2022 regarding the system of Indonesian sustainable palm oil plantation certification.
Machmud elaborated on the regulation, saying that it mandates business actors to obtain Indonesian Sustainable Palm Oil (ISPO) certificates. She remarked that the government plans to expand the regulation, so it can accommodate provisions related to sustainability aspects.
"We will soon expand the presidential regulation to accommodate sustainability provisions," she remarked. Antara News
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Indonesia’s oil palm smallholders need both state and EU support (commentary)
by Andre Barahamin on 25 October 2023
Indonesia’s is the world’s top palm oil producer, but the industry has long been associated with environmental ills such as deforestation and habitat destruction, with oil palm plantation expansion accounting for around 3.1 million hectares (7.7 million acres) of forest loss between 1990 and 2010. At the same time, the sector provides livelihoods for millions of Indonesians — approximately 2.6 million independent oil palm smallholders and their families, and around 16 million workers.
One of the biggest importers of Indonesian palm oil is the EU. In an effort to sever the link between its own market and global deforestation, the European bloc recently adopted the EU Deforestation-Free Regulation (EUDR), which requires companies trading in certain commodities, including palm oil, to ensure the goods do not result from recent deforestation or forest degradation.
While the intention behind the EUDR is noble, its impact on Indonesian smallholders will be devastating without addressing both the government and demand-side measures.
Why smallholders are important Mongabay
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Indonesia Can Sue EU over Protectionist Green Policy: Economist
Jakarta. An expert said Tuesday that Indonesia could file a lawsuit against the European Union (EU) at the World Trade Organization (WTO) for the bloc’s protectionist green policies.
The EU’s environment-related policies are sparking concerns in Indonesia. The EU’s anti-deforestation regulation -- also known by its acronym EUDR -- requires certain commodities such as palm oil to be deforestation-free before entering the European market. According to senior economist Mari Elka Pangestu, the EU could be imposing protectionist or import-restricting policies under the pretense of saving the planet.
“If we speak of protectionism, we are incredibly worried about Europe’s green policies. Are they really green or is this a hidden protectionism?” Mari, who formerly served as a managing director at the World Bank, told the 2023 BNI Investor Daily Summit at Hutan Kota by Plataran on Tuesday.
“We can take this matter to the WTO. We are aware how the dispute settlement is currently not functioning, but we need to push for non-discrimination and transparency principles to prevent protectionism,” the former trade minister said. Jakarta Globe
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Shocking: Palm oil watchdog takes five years to address and dismiss deforestation complaint
After a delay of almost five years to the day, the Roundtable on Sustainable Palm Oil (RSPO) has finally got around to addressing a complaint filed against a company linked to clearing Papuan rainforests.
EIA UK, together with Greenpeace, submitted the complaint back in October 2018, but it has taken until now for the RSPO to reach a conclusion, dismissing the complaint on the basis of insubstantial evidence.
The complaint related to breaches of the RSPO rules:
- that RSPO member companies had not declared they were involved in managing/owning palm oil plantation companies in Papua
- that these plantation companies had carried out deforestation in breach of RSPO rules.
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October 24, 2023
Everything Must Go According to Plan: Jokowi on Export Restrictions
Jakarta. President Joko “Jokowi” Widodo on Tuesday said that Indonesia had already planned out its so-called downstream policy, in which the country pushes domestic processing of its natural resources for higher added value. However, it all comes down to making sure that everything is going according to plan.
Export restrictions on raw commodities are at the heart of this policy. If other economies wish to get their hands on the said commodities, they can either import the processed goods from Indonesia or build a plant in the country. Indonesia has banned exports of unprocessed nickel ores in a move to develop the domestic industry. It enforced such restrictions on bauxite earlier this year.
“We already have a clear path ahead on what we should do. … And that includes building our downstream sectors. A roadmap on how we should proceed with this plan for mineral resources is already in place. After we [stop exports] of [raw] nickel ores, we will move to [restricting] copper, bauxite, and tin ore [exports],” Jokowi said at the 2023 BNI Investor Daily Summit at Hutan Kota by Plataran in Jakarta.
“We will then [replicate] this to other sectors. Jakarta Globe
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Nigeria-Akwa Ibom to establish Songhai model Oil Palm factory
The Akwa Ibom State Governor, Umo Éno, has declared that his administration would establish a Songhai Model Oil Palm Mill in Ibekwe Akpanyah in Mkpat-Enin Local Government Area of the state.
Éno announced this while speaking at a special church service to mark the 75th birthday celebration of Apostle John Okoriko and the 49th anniversary of the Solid Rock Kingdom Church, held at the church Headquarters, Ibekwe Akpanyah, Mkpat Enin LGA on Sunday.
Eno explained that the location of the mill at Ibekwe Akpanyah community is to complement the already existing oil palm plantation owned by the Solid Rock Church and to provide various levels of processing services for other oil palm farmers in the area.
“It’s a full mill. The team that went with me to the Songhai Integrated Farm saw that mill. I wanted to do a model, so now that I have seen a private farm here, we’ll put a model here so that you and the women in this area, can keep producing and supporting the government,” he said. Nigeria
Everything Must Go According to Plan: Jokowi on Export Restrictions
Jakarta. President Joko “Jokowi” Widodo on Tuesday said that Indonesia had already planned out its so-called downstream policy, in which the country pushes domestic processing of its natural resources for higher added value. However, it all comes down to making sure that everything is going according to plan.
Export restrictions on raw commodities are at the heart of this policy. If other economies wish to get their hands on the said commodities, they can either import the processed goods from Indonesia or build a plant in the country. Indonesia has banned exports of unprocessed nickel ores in a move to develop the domestic industry. It enforced such restrictions on bauxite earlier this year.
“We already have a clear path ahead on what we should do. … And that includes building our downstream sectors. A roadmap on how we should proceed with this plan for mineral resources is already in place. After we [stop exports] of [raw] nickel ores, we will move to [restricting] copper, bauxite, and tin ore [exports],” Jokowi said at the 2023 BNI Investor Daily Summit at Hutan Kota by Plataran in Jakarta.
“We will then [replicate] this to other sectors. Jakarta Globe
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Nigeria-Akwa Ibom to establish Songhai model Oil Palm factory
The Akwa Ibom State Governor, Umo Éno, has declared that his administration would establish a Songhai Model Oil Palm Mill in Ibekwe Akpanyah in Mkpat-Enin Local Government Area of the state.
Éno announced this while speaking at a special church service to mark the 75th birthday celebration of Apostle John Okoriko and the 49th anniversary of the Solid Rock Kingdom Church, held at the church Headquarters, Ibekwe Akpanyah, Mkpat Enin LGA on Sunday.
Eno explained that the location of the mill at Ibekwe Akpanyah community is to complement the already existing oil palm plantation owned by the Solid Rock Church and to provide various levels of processing services for other oil palm farmers in the area.
“It’s a full mill. The team that went with me to the Songhai Integrated Farm saw that mill. I wanted to do a model, so now that I have seen a private farm here, we’ll put a model here so that you and the women in this area, can keep producing and supporting the government,” he said. Nigeria
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October 23, 2023
Indonesia-(Inforial) PT BIA joins hands with local government to preserve biodiversity in Papua
The president director of PT Bio Inti Agrindo (BIA) and the head of the Papua Natural Resources Conservation Center (BBKSDA) signed a cooperation agreement to strengthen the function of conservation areas, efforts to Increase biodiversity and community empowerment around the Lake Bian Wildlife Reserve (SM) in Papua.
The momentous occasion was also attended by officials from the Directorate General of KSDAE (Natural Resources and Ecosystem Conservation) and BBKSDA Papua, as well as the staff of BIA. The signing was held at the Sahira Hotel Bogor on Oct. 20, 2023.
The crude palm oil (CPO) producer has carried out operations in Merauke on the island of Papua for some time, particularly managing over 34,000 hectares of oil palm plantations. The company also has a strong commitment to sustainability that focuses on the No Deforestation, No Peat and No Exploitation (NDPE) campaign.
Furthermore, they are striving for a vision of "Becoming an integrated sustainable palm oil company that contributes to the community" which is supported by having obtained ISPO, RSPO and ISO certificates.
Similar across the archipelagic country, Papua is known for its unique ecosystem and distinct richness in biodiversity, and Lake Bian Wildlife Reserve is working toward maintaining that. The Jakarta Post
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E Kalimantan pushes sustainable plantation to improve people's welfare
Samarinda, E Kalimantan (ANTARA) - Head of the East Kalimantan Provincial Plantation Office, Ahmad Muzakkir, has said that his side is adhering to the principles of sustainability and environmental awareness in developing plantations to improve the welfare of the community.
"Activities in sustainable plantation development include increasing the production and productivity of smallholder plantation commodities, such as oil palm, dalam coconut (variety), rubber, cocoa, pepper, palm (Arenga pinnata), and nutmeg by maintaining the ecosystem," he informed here on Saturday.
He explained that sustainable development supports environment and nature preservation, as well as organic agriculture, which can increase productivity and, thereby, improve small farmers' welfare.
The provincial plantation office is also running many programs to implement strategies and policies to support smallholder plantations.
The programs include the expansion of smallholder plantation areas and increasing their productivity through commodity plant intensification, rehabilitation, and rejuvenation.
The office is also promoting efforts to increase the quality of plantation human resources and farmer groups by providing training and mentoring staff.
Moreover, Muzakkir said, his side is conducting oil palm tree rejuvenation to increase production using funding provided by the Palm Oil Plantation Fund Management Agency (BPDPKS). Antara News
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Nigeria’s palm oil imports from Malaysia increased by 65.3% – Report
Nigeria’s palm oil imports from Malaysia, a leading global producer, increased by 65.3 per cent in the first nine months of 2023.
Data obtained by our correspondent from the Malaysian Palm Oil Council revealed that the country’s palm oil import from Malaysia increased to 234,324 metric tons between January to September 2023, from 141, 786 MT in the corresponding period of 2022, indicating an increase of 92,538 MT.
The report also listed India, China, Kenya, Netherlands, Japan, and Turkey as its top 10 major importers.
To boost local crude palm oil production, the Federal Government imposed a 35 per cent tariff (10 per cent duty and 25 per cent levy) on palm oil imports into the country as measures to protect the country’s palm oil industry and spur industry growth.
Despite this, Nigerians had continued to prefer the importation of palm oil rather than locally produced products, owing to the huge demand-supply gap.
Nigeria’s palm oil output was estimated at 900,000-1.3 million MT, experts said. Import was estimated at over N500bn annually. With a national demand of 2.1 million MT, the supply gap was around 800,000 MT.
In an earlier report by The PUNCH, the National President of the All Farmers Association of Nigeria, Kabir Ibrahim, said that Nigeria had yet to achieve food sufficiency. Punch NG
Indonesia-(Inforial) PT BIA joins hands with local government to preserve biodiversity in Papua
The president director of PT Bio Inti Agrindo (BIA) and the head of the Papua Natural Resources Conservation Center (BBKSDA) signed a cooperation agreement to strengthen the function of conservation areas, efforts to Increase biodiversity and community empowerment around the Lake Bian Wildlife Reserve (SM) in Papua.
The momentous occasion was also attended by officials from the Directorate General of KSDAE (Natural Resources and Ecosystem Conservation) and BBKSDA Papua, as well as the staff of BIA. The signing was held at the Sahira Hotel Bogor on Oct. 20, 2023.
The crude palm oil (CPO) producer has carried out operations in Merauke on the island of Papua for some time, particularly managing over 34,000 hectares of oil palm plantations. The company also has a strong commitment to sustainability that focuses on the No Deforestation, No Peat and No Exploitation (NDPE) campaign.
Furthermore, they are striving for a vision of "Becoming an integrated sustainable palm oil company that contributes to the community" which is supported by having obtained ISPO, RSPO and ISO certificates.
Similar across the archipelagic country, Papua is known for its unique ecosystem and distinct richness in biodiversity, and Lake Bian Wildlife Reserve is working toward maintaining that. The Jakarta Post
----------
E Kalimantan pushes sustainable plantation to improve people's welfare
Samarinda, E Kalimantan (ANTARA) - Head of the East Kalimantan Provincial Plantation Office, Ahmad Muzakkir, has said that his side is adhering to the principles of sustainability and environmental awareness in developing plantations to improve the welfare of the community.
"Activities in sustainable plantation development include increasing the production and productivity of smallholder plantation commodities, such as oil palm, dalam coconut (variety), rubber, cocoa, pepper, palm (Arenga pinnata), and nutmeg by maintaining the ecosystem," he informed here on Saturday.
He explained that sustainable development supports environment and nature preservation, as well as organic agriculture, which can increase productivity and, thereby, improve small farmers' welfare.
The provincial plantation office is also running many programs to implement strategies and policies to support smallholder plantations.
The programs include the expansion of smallholder plantation areas and increasing their productivity through commodity plant intensification, rehabilitation, and rejuvenation.
The office is also promoting efforts to increase the quality of plantation human resources and farmer groups by providing training and mentoring staff.
Moreover, Muzakkir said, his side is conducting oil palm tree rejuvenation to increase production using funding provided by the Palm Oil Plantation Fund Management Agency (BPDPKS). Antara News
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Nigeria’s palm oil imports from Malaysia increased by 65.3% – Report
Nigeria’s palm oil imports from Malaysia, a leading global producer, increased by 65.3 per cent in the first nine months of 2023.
Data obtained by our correspondent from the Malaysian Palm Oil Council revealed that the country’s palm oil import from Malaysia increased to 234,324 metric tons between January to September 2023, from 141, 786 MT in the corresponding period of 2022, indicating an increase of 92,538 MT.
The report also listed India, China, Kenya, Netherlands, Japan, and Turkey as its top 10 major importers.
To boost local crude palm oil production, the Federal Government imposed a 35 per cent tariff (10 per cent duty and 25 per cent levy) on palm oil imports into the country as measures to protect the country’s palm oil industry and spur industry growth.
Despite this, Nigerians had continued to prefer the importation of palm oil rather than locally produced products, owing to the huge demand-supply gap.
Nigeria’s palm oil output was estimated at 900,000-1.3 million MT, experts said. Import was estimated at over N500bn annually. With a national demand of 2.1 million MT, the supply gap was around 800,000 MT.
In an earlier report by The PUNCH, the National President of the All Farmers Association of Nigeria, Kabir Ibrahim, said that Nigeria had yet to achieve food sufficiency. Punch NG
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October 20, 2023
How effective is the European Union’s deforestation regulation?
20 October 2023 Author: Eugene Mark, RSIS
A new European Union (EU) regulation was introduced in June 2023 to prevent the importation of commodities linked to deforestation with the goal of curbing forest loss, land degradation and biodiversity loss. The EU Deforestation Regulation (EUDR) will apply to commodities including palm oil and other derivative products.
However, concerns have been raised that the EUDR and related developments favour larger palm oil companies at the expense of smaller producers. Larger companies have the financial resources and technical capacity to provide traceability reports and comply with sustainability requirements. Smaller producers may be cut off from the supply chain if they cannot meet these requirements.
Smaller palm oil producers often need more resources and are typically seen as the weakest link in the supply chain. Independent smallholders are often disorganised and lack strong cooperatives to help them lift standards. Livelihood constraints can also distract smallholders from adopting global norms on environmental sustainability.
Smallholders often lack access to the best land for cultivation or the technical and logistical resources of larger palm oil companies. Lacking access to land, some independent smallholders have resorted to producing palm oil in protected areas such as forest reserves. As a result of traceability issues, palm oil mills are typically reluctant to purchase fresh fruit bunches from smallholders, further exacerbating livelihood problems for smallholders.
Smallholders have protested, expressing fears that they could be excluded from the EU market. In March 2023, several Indonesian smallholders staged protests outside the headquarters of the European Union Delegation in Jakarta. Likewise, Malaysian smallholder associations travelled to Brussels to demand changes to the EUDR. At the same time, smallholder groups such as the Palm Oil Farmers’ Union in Indonesia have supported the EUDR as an opportunity for smallholders to provide palm oil products that are free from deforestation. But these smallholders need support from the European Union.
EU authorities must now confront the EUDR’s implications. Achieving a delicate balance that satisfies all parties remains the European Union’s most challenging task. Clearly the European Union needs to reach an agreement with Indonesia and Malaysia to realise the potential positive impacts of the EUDR along the supply chain. East Asia Forum
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India Plans to cover area larger than Sikkim with palm oil plantations
“In India, Oil Palm is generally grown in agricultural lands (ROI & NER)/ jhummed lands (NER) as against other countries wherein it is grown by clearing the forest lands. Hence the Oil Palm cultivation in India doesn’t affect the biodiversity. The present policy of oil palm development programme in India is to promote oil palm cultivation purely in agricultural lands, either replacing low value crop with high value crop like oil palm or in the land newly brought under irrigation for raising garden land crops. The suitable areas are identified by considering the present land use and avoiding the areas of existing forests. Standing crops like oil palm could serve as net accumulators of carbon, thereby offsetting carbon emissions arising mainly from fossil fuel consumption. An oil palm plantation can “sequester” up to 15 tonnes of carbon dioxide from the atmosphere for each hectare planted, thus contributing to mitigate the greenhouse effect like a planted forest,” said K Suresh, director, Indian Council of Agricultural Research - Indian Institute of Oil Palm Research (ICAR-IIOPR), in a statement. Hindusan Times
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Indonesian Cargoes begin trading on Indonesia's ICDX crude palm oil exchange
JAKARTA, Oct 20 (Reuters) - The first trading began on Friday on Indonesia's palm oil exchange, part of an effort by the world's biggest producer of the vegetable oil to create credible benchmark prices.
Four lots of 25 metric tons of physical crude palm oil (CPO) traded on Friday at 11,305 rupiah ($0.7130) per kg when the Indonesia Commodity and Derivatives Exchange (ICDX) opened, an ICDX official said. The shipments are for delivery to the port of Dumai in Sumatra in 15 days.
Friday was the first day that the ICDX offered spot pricing and 18 companies were expected to participate, exchange CEO Nursalam told Reuters.
Futures contracts for CPO will be offered later, said Nursalam. Market Screener
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Ghana-MoFA to boost oil palm production in Bekwai Municipality
The Bekwai Municipal Directorate of Food and Agriculture is strengthening the capacities of farmers and resourcing them with high yielding oil palm seedlings to help increase and expand the cultivation of the crop in the municipality.
The objective is to make the municipality the hub of bulk palm oil production in the Ashanti region.
The directorate, in collaboration with the Municipal Assembly, had already supplied over 300,000 high yielding and pest resistant oil palm seedlings to interested farmers to cultivate in their farms.
Mr. Emmanuel Mensah, Municipal Director of Agriculture, who made this known to the Ghana News Agency, said about 45 percent of the seedlings were handed over to women farmers in the area to cultivate.
This, according to him, was part an elaborate programme designed by MoFA aimed at training and resourcing women farmers with modern skills and best agronomic practices to improve on their crop yields and farm production to maximize profit and enhance their living standards. News Ghana
How effective is the European Union’s deforestation regulation?
20 October 2023 Author: Eugene Mark, RSIS
A new European Union (EU) regulation was introduced in June 2023 to prevent the importation of commodities linked to deforestation with the goal of curbing forest loss, land degradation and biodiversity loss. The EU Deforestation Regulation (EUDR) will apply to commodities including palm oil and other derivative products.
However, concerns have been raised that the EUDR and related developments favour larger palm oil companies at the expense of smaller producers. Larger companies have the financial resources and technical capacity to provide traceability reports and comply with sustainability requirements. Smaller producers may be cut off from the supply chain if they cannot meet these requirements.
Smaller palm oil producers often need more resources and are typically seen as the weakest link in the supply chain. Independent smallholders are often disorganised and lack strong cooperatives to help them lift standards. Livelihood constraints can also distract smallholders from adopting global norms on environmental sustainability.
Smallholders often lack access to the best land for cultivation or the technical and logistical resources of larger palm oil companies. Lacking access to land, some independent smallholders have resorted to producing palm oil in protected areas such as forest reserves. As a result of traceability issues, palm oil mills are typically reluctant to purchase fresh fruit bunches from smallholders, further exacerbating livelihood problems for smallholders.
Smallholders have protested, expressing fears that they could be excluded from the EU market. In March 2023, several Indonesian smallholders staged protests outside the headquarters of the European Union Delegation in Jakarta. Likewise, Malaysian smallholder associations travelled to Brussels to demand changes to the EUDR. At the same time, smallholder groups such as the Palm Oil Farmers’ Union in Indonesia have supported the EUDR as an opportunity for smallholders to provide palm oil products that are free from deforestation. But these smallholders need support from the European Union.
EU authorities must now confront the EUDR’s implications. Achieving a delicate balance that satisfies all parties remains the European Union’s most challenging task. Clearly the European Union needs to reach an agreement with Indonesia and Malaysia to realise the potential positive impacts of the EUDR along the supply chain. East Asia Forum
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India Plans to cover area larger than Sikkim with palm oil plantations
“In India, Oil Palm is generally grown in agricultural lands (ROI & NER)/ jhummed lands (NER) as against other countries wherein it is grown by clearing the forest lands. Hence the Oil Palm cultivation in India doesn’t affect the biodiversity. The present policy of oil palm development programme in India is to promote oil palm cultivation purely in agricultural lands, either replacing low value crop with high value crop like oil palm or in the land newly brought under irrigation for raising garden land crops. The suitable areas are identified by considering the present land use and avoiding the areas of existing forests. Standing crops like oil palm could serve as net accumulators of carbon, thereby offsetting carbon emissions arising mainly from fossil fuel consumption. An oil palm plantation can “sequester” up to 15 tonnes of carbon dioxide from the atmosphere for each hectare planted, thus contributing to mitigate the greenhouse effect like a planted forest,” said K Suresh, director, Indian Council of Agricultural Research - Indian Institute of Oil Palm Research (ICAR-IIOPR), in a statement. Hindusan Times
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Indonesian Cargoes begin trading on Indonesia's ICDX crude palm oil exchange
JAKARTA, Oct 20 (Reuters) - The first trading began on Friday on Indonesia's palm oil exchange, part of an effort by the world's biggest producer of the vegetable oil to create credible benchmark prices.
Four lots of 25 metric tons of physical crude palm oil (CPO) traded on Friday at 11,305 rupiah ($0.7130) per kg when the Indonesia Commodity and Derivatives Exchange (ICDX) opened, an ICDX official said. The shipments are for delivery to the port of Dumai in Sumatra in 15 days.
Friday was the first day that the ICDX offered spot pricing and 18 companies were expected to participate, exchange CEO Nursalam told Reuters.
Futures contracts for CPO will be offered later, said Nursalam. Market Screener
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Ghana-MoFA to boost oil palm production in Bekwai Municipality
The Bekwai Municipal Directorate of Food and Agriculture is strengthening the capacities of farmers and resourcing them with high yielding oil palm seedlings to help increase and expand the cultivation of the crop in the municipality.
The objective is to make the municipality the hub of bulk palm oil production in the Ashanti region.
The directorate, in collaboration with the Municipal Assembly, had already supplied over 300,000 high yielding and pest resistant oil palm seedlings to interested farmers to cultivate in their farms.
Mr. Emmanuel Mensah, Municipal Director of Agriculture, who made this known to the Ghana News Agency, said about 45 percent of the seedlings were handed over to women farmers in the area to cultivate.
This, according to him, was part an elaborate programme designed by MoFA aimed at training and resourcing women farmers with modern skills and best agronomic practices to improve on their crop yields and farm production to maximize profit and enhance their living standards. News Ghana
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October 19, 2023
Rubber drives at least twice as much deforestation as previously thought
The clearing of forests for growing rubber “has been substantially underestimated” in figures used to develop policy on deforestation, new research finds.
The study, published in Nature, uses satellite data to produce high-resolution maps of rubber-driven forest loss in south-east Asia since 1993.
It finds that more than 4m hectares of tropical forests have been lost to rubber plantations in south-east Asia over the last three decades – at least two-to-three times more than previously thought. More than 1m ha of plantations have been established in key biodiversity areas.
The greatest forest losses occurred in Indonesia, Thailand and Malaysia, the research says. In Cambodia, more than 40% of rubber plantations were associated with deforestation, of which 19% was in key biodiversity areas. Carbon Brief
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New EU Rule Targets Deforestation in Chocolate Industry
Ghana's forests are shrinking largely to make room to grow cocoa, the raw ingredient in chocolate. The country lost a record amount of forest last year, and experts say it's not sustainable. Under an upcoming European Union regulation, chocolate companies will have to show there is no deforestation in their supply chains. But such a rule will affect Ghana's roughly 800,000 cocoa farmers, many of whom live in poverty. VOA's Steve Baragona has more. Camera: Mary Cieslak, Senanu Tord
Rubber drives at least twice as much deforestation as previously thought
The clearing of forests for growing rubber “has been substantially underestimated” in figures used to develop policy on deforestation, new research finds.
The study, published in Nature, uses satellite data to produce high-resolution maps of rubber-driven forest loss in south-east Asia since 1993.
It finds that more than 4m hectares of tropical forests have been lost to rubber plantations in south-east Asia over the last three decades – at least two-to-three times more than previously thought. More than 1m ha of plantations have been established in key biodiversity areas.
The greatest forest losses occurred in Indonesia, Thailand and Malaysia, the research says. In Cambodia, more than 40% of rubber plantations were associated with deforestation, of which 19% was in key biodiversity areas. Carbon Brief
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New EU Rule Targets Deforestation in Chocolate Industry
Ghana's forests are shrinking largely to make room to grow cocoa, the raw ingredient in chocolate. The country lost a record amount of forest last year, and experts say it's not sustainable. Under an upcoming European Union regulation, chocolate companies will have to show there is no deforestation in their supply chains. But such a rule will affect Ghana's roughly 800,000 cocoa farmers, many of whom live in poverty. VOA's Steve Baragona has more. Camera: Mary Cieslak, Senanu Tord
Collaboration, transparency and monitoring enabling faster deforestation progress
The Consumer Goods Forum’s Forest Positive Coalition publishes 2023 Annual Report, showing collective advancements on forest conservation, ecosystem restoration, and community inclusion in the production of palm oil, soy, paper, pulp and fibre-based packaging, and beef.
The Consumer Goods Forum’s (CGF) Forest Positive Coalition of Action, which brings together 21 of the world’s major consumer goods companies, has today published its latest Annual Report, showing improvements on collective efforts to remove deforestation, forest degradation and conversion from key commodity supply chains.
The report, ‘Perspectives on Progress: Challenges and Insights on the Way to Forest Positive’, marks three years since the Coalition started implementing its Theory of Change. The approach prioritises the sourcing of deforestation and conversion-free goods in members’ own supply chains, supporting suppliers to do the same, and working to transform commodity production landscapes into forest positive areas. The Consumer Goods Forum
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Malaysia increases budget allocation for Plantations and Commodities Ministry
KUALA LUMPUR: The allocation for the Plantation and Commodities Ministry (KPK) was increased to RM732.7 million in the 2024 Budget after taking into consideration feedback from the industry, said Deputy Prime Minister Datuk Seri Fadillah Yusof.
Fadillah, who is also Plantation and Commodities Minister, said the allocation will be channeled towards the management and development of all commodities under the Ministry's purview, including palm oil, rubber, timber, kenaf, cocoa and pepper.
"Among the areas of focus is obviously related to the new economy as prescribed in the budget, biomass – how to use the country's recyclable wastes to generate revenue for businesses and the nation.
"In that context, our focus is on achieving higher, more efficient production through technology and innovation; and ultimately, our downstream products will become better and can penetrate the global market," he said during Bernama TV's Ruang Bicara programme on "Economic Reforms Empower the People" last night (October 18). New Straits Times
The Consumer Goods Forum’s Forest Positive Coalition publishes 2023 Annual Report, showing collective advancements on forest conservation, ecosystem restoration, and community inclusion in the production of palm oil, soy, paper, pulp and fibre-based packaging, and beef.
The Consumer Goods Forum’s (CGF) Forest Positive Coalition of Action, which brings together 21 of the world’s major consumer goods companies, has today published its latest Annual Report, showing improvements on collective efforts to remove deforestation, forest degradation and conversion from key commodity supply chains.
The report, ‘Perspectives on Progress: Challenges and Insights on the Way to Forest Positive’, marks three years since the Coalition started implementing its Theory of Change. The approach prioritises the sourcing of deforestation and conversion-free goods in members’ own supply chains, supporting suppliers to do the same, and working to transform commodity production landscapes into forest positive areas. The Consumer Goods Forum
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Malaysia increases budget allocation for Plantations and Commodities Ministry
KUALA LUMPUR: The allocation for the Plantation and Commodities Ministry (KPK) was increased to RM732.7 million in the 2024 Budget after taking into consideration feedback from the industry, said Deputy Prime Minister Datuk Seri Fadillah Yusof.
Fadillah, who is also Plantation and Commodities Minister, said the allocation will be channeled towards the management and development of all commodities under the Ministry's purview, including palm oil, rubber, timber, kenaf, cocoa and pepper.
"Among the areas of focus is obviously related to the new economy as prescribed in the budget, biomass – how to use the country's recyclable wastes to generate revenue for businesses and the nation.
"In that context, our focus is on achieving higher, more efficient production through technology and innovation; and ultimately, our downstream products will become better and can penetrate the global market," he said during Bernama TV's Ruang Bicara programme on "Economic Reforms Empower the People" last night (October 18). New Straits Times
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October 18, 2023
Inside the EU’s Ambitious Anti-Deforestation Regulation
By Madeline Bruning
An EU law requiring deforestation-free exports could impact economies and ecologies around the world.
Every year, humans destroy 10 million hectares of forestry, which is an area roughly the size of Portugal. And most of this deforestation is caused—not by hurricanes and wildfires—but by farms and cows.
The increased need for livestock grazing areas and cropland drives the mass removal of forests, making up 90 percent of annual global deforestation. Deforestation, in turn, accounts for 11 percent of global greenhouse gas emissions.
The European Union recently responded to the threat posed by agricultural expansion with what one commentator called “the world’s toughest rules on deforestation.”
By the end of 2024, producers of certain goods must verify that their products are deforestation-free—that is, that their production did not involve the destruction or degradation of forests—before they can export them to the EU.
The regulation targets the most commonly purchased goods in the EU that are most responsible for deforestation elsewhere, including palm oil, soy, wood, cocoa, coffee, cattle, and rubber.
To prove that their products are deforestation-free, companies must disclose details about their products, including the geolocations of the plots of the land used as well as “conclusive and verifiable” evidence that its production was deforestation-free. The Regulatory Review
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Public debate on oil palm under scrutiny in new article
Denise Oliveira
Confronting communication barriers for more sustainable production
Is palm oil a ‘demon’, or is it being unfairly demonized? To shed light on this debate, a team of researchers investigated ‘pro’ and ‘contra’ narratives on oil palm production. Their recent review article, Oil palm production, instrumental and relational values: the public relations battle for hearts, heads, and hands along the value chain, identifies barriers to effective communication and states the need to build a better dialogue toward sustainable oil palm production.
The oil palm sustainability debate may well be the most polarized issue in tropical land use. On one hand, critics question its negative impacts on tropical rainforests, people, and biodiversity. On the other, champions tout its high potential for improving farmer incomes and creating jobs. While the topic has been hotly debated over the past decade, “communication between the ‘pro’ and the ‘contra’ camps is limited, as the underlying values may limit the interest in listening to other perspectives,” said the co-authors.
“This muddied debate urges clearer distinctions between the crop itself and how it is produced to achieve sustainable oil palm systems,” said Andrew Miccolis, one of the authors of the review and the national coordinator of the Centre for International Forestry Research and World Agroforestry (CIFOR-ICRAF) in Brazil. “The strong association of a crop with evil, as happened to oil palm in parts of the world, and to soybeans in others, may primarily be due to mislabeling. It is not the plant as such, but the way it has so far been produced that should be the focus of attention, as it can open avenues for a more socially and ecologically desirable use of the biological potential of the species in an appropriate environment.” Forests NewsCIFOR
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Singapore-based Indonesia palm oil exporter, Musim Mas, grapples with EU law
Musim Mas reviews supply chain to comply with deforestation reporting requirement
By NANA SHIBATA
JAKARTA -- Musim Mas, a Singapore-based exporter of Indonesian palm oil, faces "a big challenge" over the European Union's new deforestation regulation, which will particularly impact the country's small individual farmers, a company executive told Nikkei Asia.
The landmark law requires importers of commodities such as palm oil, coffee and cocoa to generate a due diligence statement proving their products do not come from deforested land or have led to forest degradation. Under the regulation, traders and other organizations selling products in the EU will have until late 2024 to comply. Micro and small enterprises, however, are exempt from the due diligence rules until mid-2025.
Carolyn Lim, a senior Musim Mas manager, calls the law "a trade barrier."
"We have a huge challenge to prove how do we pass [legal evidence] to the EU," Lim said in a recent interview. "That's why it's a huge problem."
Many small farmers' output cannot be traced, and some might not even possess land titles, Lim added.
Other foreign palm oil companies active in Indonesia include Singapore's Wilmar International with a total planted area of 231,697 hectares, of which about 65% is in Indonesia. U.S. agriculture giant Cargill has about 80,000 hectares of company-owned planted land in Indonesia. Major Indonesian players include Asian Agri and Sinar Mas Agro Resources & Technology.
To meet the EU regulation, Musim Mas recently halted the export of palm oil from small farmers to the region, Lim said.
She added that Musim Mas has adjusted how it sources supplies so that they come "from our own operations as well as our suppliers, who can provide us with ... corporate traceability statistics, then ship to [EU markets]."
The palm oil produced by independent small farmers is now used to meet demand from the Asia-Pacific market because the region "cares about quality but probably not traceability," Lim said.
The Asia-Pacific region in 2022 contributed more than 60% of the company's total revenue of $10.8 billion.
In addition to the review of supply chains, Musim Mas is also holding workshops and otherwise helping small farmers gain a better understanding of sustainability. While acknowledging that improving sustainability knowledge among farmers could take time, Lim said.
Musim Mas also works with brands to find ways to exchange data with EU regulators that is palatable to the producing countries and the EU. "Smallholders' deforestation is going to be a challenge for the industry," Lim said, "even [for] the brands who work with us." Nikkei Asia
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Chinese palm oil company helps drive local economy in Indonesia
Julong Group, a Chinese company investing in palm plantations in a rural region of Indonesia has helped drive the growth of local economy and improve villagers' livelihoods. Xinhua
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Indonesian President Jokowi Hopes China's Belt and Road Initiative Won't Lead to Losses
TEMPO.CO, Jakarta - Indonesian President Joko Widodo or Jokowi expected China's Belt and Road Initiative (BRI) to be based on the principle of equal partnership and shared benefits. He highlighted the importance of synergy in the BRI, which gives host countries room for ownership in the implementation of their projects.
“The long-term sustainability of BRI projects must be ensured and strengthen the economic foundation of partner countries instead of complicating their fiscal conditions,” Jokowi said at the opening of the Belt and Road Forum Summit in Beijing on Wednesday, October 18, 2023.
The BRI is a global infrastructure and energy development plan launched by China a decade ago to connect Asia with Africa and Europe by land and sea. Critics, however, see the initiative as a tool for China to expand its geopolitical and economic influence. The BRI has been called a reinvention of the ancient Silk Road Economic Belt, which was aimed at boosting global trade.
China's Foreign Ministry recorded that more than 150 countries, including Indonesia, and more than 30 international organizations have signed the Belt and Road cooperation documents.
Indonesia’s first high-speed train, known as Whoosh, is part of the BRI. The recently launched national strategic project under the China-Indonesia joint venture cost more than US$7 billion. Tempo
----------
Inside the EU’s Ambitious Anti-Deforestation Regulation
By Madeline Bruning
An EU law requiring deforestation-free exports could impact economies and ecologies around the world.
Every year, humans destroy 10 million hectares of forestry, which is an area roughly the size of Portugal. And most of this deforestation is caused—not by hurricanes and wildfires—but by farms and cows.
The increased need for livestock grazing areas and cropland drives the mass removal of forests, making up 90 percent of annual global deforestation. Deforestation, in turn, accounts for 11 percent of global greenhouse gas emissions.
The European Union recently responded to the threat posed by agricultural expansion with what one commentator called “the world’s toughest rules on deforestation.”
By the end of 2024, producers of certain goods must verify that their products are deforestation-free—that is, that their production did not involve the destruction or degradation of forests—before they can export them to the EU.
The regulation targets the most commonly purchased goods in the EU that are most responsible for deforestation elsewhere, including palm oil, soy, wood, cocoa, coffee, cattle, and rubber.
To prove that their products are deforestation-free, companies must disclose details about their products, including the geolocations of the plots of the land used as well as “conclusive and verifiable” evidence that its production was deforestation-free. The Regulatory Review
---------
Public debate on oil palm under scrutiny in new article
Denise Oliveira
Confronting communication barriers for more sustainable production
Is palm oil a ‘demon’, or is it being unfairly demonized? To shed light on this debate, a team of researchers investigated ‘pro’ and ‘contra’ narratives on oil palm production. Their recent review article, Oil palm production, instrumental and relational values: the public relations battle for hearts, heads, and hands along the value chain, identifies barriers to effective communication and states the need to build a better dialogue toward sustainable oil palm production.
The oil palm sustainability debate may well be the most polarized issue in tropical land use. On one hand, critics question its negative impacts on tropical rainforests, people, and biodiversity. On the other, champions tout its high potential for improving farmer incomes and creating jobs. While the topic has been hotly debated over the past decade, “communication between the ‘pro’ and the ‘contra’ camps is limited, as the underlying values may limit the interest in listening to other perspectives,” said the co-authors.
“This muddied debate urges clearer distinctions between the crop itself and how it is produced to achieve sustainable oil palm systems,” said Andrew Miccolis, one of the authors of the review and the national coordinator of the Centre for International Forestry Research and World Agroforestry (CIFOR-ICRAF) in Brazil. “The strong association of a crop with evil, as happened to oil palm in parts of the world, and to soybeans in others, may primarily be due to mislabeling. It is not the plant as such, but the way it has so far been produced that should be the focus of attention, as it can open avenues for a more socially and ecologically desirable use of the biological potential of the species in an appropriate environment.” Forests NewsCIFOR
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Singapore-based Indonesia palm oil exporter, Musim Mas, grapples with EU law
Musim Mas reviews supply chain to comply with deforestation reporting requirement
By NANA SHIBATA
JAKARTA -- Musim Mas, a Singapore-based exporter of Indonesian palm oil, faces "a big challenge" over the European Union's new deforestation regulation, which will particularly impact the country's small individual farmers, a company executive told Nikkei Asia.
The landmark law requires importers of commodities such as palm oil, coffee and cocoa to generate a due diligence statement proving their products do not come from deforested land or have led to forest degradation. Under the regulation, traders and other organizations selling products in the EU will have until late 2024 to comply. Micro and small enterprises, however, are exempt from the due diligence rules until mid-2025.
Carolyn Lim, a senior Musim Mas manager, calls the law "a trade barrier."
"We have a huge challenge to prove how do we pass [legal evidence] to the EU," Lim said in a recent interview. "That's why it's a huge problem."
Many small farmers' output cannot be traced, and some might not even possess land titles, Lim added.
Other foreign palm oil companies active in Indonesia include Singapore's Wilmar International with a total planted area of 231,697 hectares, of which about 65% is in Indonesia. U.S. agriculture giant Cargill has about 80,000 hectares of company-owned planted land in Indonesia. Major Indonesian players include Asian Agri and Sinar Mas Agro Resources & Technology.
To meet the EU regulation, Musim Mas recently halted the export of palm oil from small farmers to the region, Lim said.
She added that Musim Mas has adjusted how it sources supplies so that they come "from our own operations as well as our suppliers, who can provide us with ... corporate traceability statistics, then ship to [EU markets]."
The palm oil produced by independent small farmers is now used to meet demand from the Asia-Pacific market because the region "cares about quality but probably not traceability," Lim said.
The Asia-Pacific region in 2022 contributed more than 60% of the company's total revenue of $10.8 billion.
In addition to the review of supply chains, Musim Mas is also holding workshops and otherwise helping small farmers gain a better understanding of sustainability. While acknowledging that improving sustainability knowledge among farmers could take time, Lim said.
Musim Mas also works with brands to find ways to exchange data with EU regulators that is palatable to the producing countries and the EU. "Smallholders' deforestation is going to be a challenge for the industry," Lim said, "even [for] the brands who work with us." Nikkei Asia
---------
Chinese palm oil company helps drive local economy in Indonesia
Julong Group, a Chinese company investing in palm plantations in a rural region of Indonesia has helped drive the growth of local economy and improve villagers' livelihoods. Xinhua
----------
Indonesian President Jokowi Hopes China's Belt and Road Initiative Won't Lead to Losses
TEMPO.CO, Jakarta - Indonesian President Joko Widodo or Jokowi expected China's Belt and Road Initiative (BRI) to be based on the principle of equal partnership and shared benefits. He highlighted the importance of synergy in the BRI, which gives host countries room for ownership in the implementation of their projects.
“The long-term sustainability of BRI projects must be ensured and strengthen the economic foundation of partner countries instead of complicating their fiscal conditions,” Jokowi said at the opening of the Belt and Road Forum Summit in Beijing on Wednesday, October 18, 2023.
The BRI is a global infrastructure and energy development plan launched by China a decade ago to connect Asia with Africa and Europe by land and sea. Critics, however, see the initiative as a tool for China to expand its geopolitical and economic influence. The BRI has been called a reinvention of the ancient Silk Road Economic Belt, which was aimed at boosting global trade.
China's Foreign Ministry recorded that more than 150 countries, including Indonesia, and more than 30 international organizations have signed the Belt and Road cooperation documents.
Indonesia’s first high-speed train, known as Whoosh, is part of the BRI. The recently launched national strategic project under the China-Indonesia joint venture cost more than US$7 billion. Tempo
----------
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October 16, 2023
Replanting unproductive palm oil with smallholder plantations can help achieve Sustainable Development Goals in Sumatra, Indonesia
Oil palm (Elaeis guinensis) is a controversial crop. To assess its sustainability, we analysed the contribution of different types of plantations (smallholder, industrial and unproductive) towards meeting six Sustainable Development Goals. Using spatial econometric methods and data from 25,067 villages in Sumatra, Indonesia, we revealed that unproductive plantations are associated with more cases of malnutrition, worsened school access, more air pollution and increased criminality. We also proposed a strategy for sustainable palm oil expansion based on replanting unproductive plantations with either industrial or smallholder palm oil. Smallholder replanting was beneficial for five Goals (Zero poverty, Good health, Quality Education, Environmental preservation and Crime reduction), while the same intervention only improved two Goals in the industrial case (Zero poverty and Quality Education). Our appraisal is relevant to policymakers aiming towards the 2030 Agenda, organisations planning oil palm expansion, and retailers or consumers concerned about the sustainability of oil consumption.
Introduction
In 2015, all United Nations Member States adopted the 2030 Agenda for Sustainable Development, an urgent call for action to all countries to achieve sustainable development by 20301. The Sustainable Development Goals (SDGs) are at the core of the initiative - 17 guiding principles encompassing economic growth, environmental protection, global peace, access to healthcare, basic education and others that should be followed by all countries to aim towards a more sustainable future. Since its adoption, many public and private organisations have also relied on the SDGs to evaluate the sustainability of their activities. Nonetheless, this analysis can be challenging, especially when the activities evaluated can have complex outcomes for many different development dimensions. Palm oil production in tropical countries is a typical example of such complex interactions between different SDGs2. Nature Fosch, A., Ferraz de Arruda, G., Aleta, A. et al. Replanting unproductive palm oil with smallholder plantations can help achieve Sustainable Development Goals in Sumatra, Indonesia. Commun Earth Environ 4, 378 (2023). https://doi.org/10.1038/s43247-023-01037-4
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Malaysia-RM2.4bil allocation to Felda, Felcra & Risa to boost agro-commodity activities, smallholders
KUALA LUMPUR: The government has allocated RM2.4 billion to the Federal Land Development Authority (Felda), Felcra Bhd and the Rubber Industry Smallholders Development Authority (Risda) to invigorate agro-commodity activities further and enhance the socio-economic status of smallholders.
Prime minister Datuk Seri Anwar Ibrahim said as of June, the agro-commodity sector had contributed RM38 billion, equivalent to 5.0 per cent of the gross domestic product (GDP) and RM77.4 billion, or 11 per cent, to the country's exports.
"This impressive achievement comes despite facing numerous challenges and the uncertainties of the global economy.
"Among these challenges are the implications of non-tariff barriers enforced by importing countries like the European Union Deforestation-Free Regulation," he said at the 2024 Budget speech in Parliament today. New Straits Times
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Malaysian, Thai economies suffer as currencies slide vs. dollar
ASEAN depreciations bring higher import costs and increase inflation risks
SINGAPORE -- Southeast Asian currencies are trading near their lows for the year against the surging dollar, with the Malaysian ringgit and Thai baht leading the decline, as governments and businesses in the region worry about the economic impact of the depreciation.
The cheaper currencies are bringing higher import costs. Regional exporters, on the other hand, are struggling to take advantage of the slide, as uncertainties prevail in big markets, especially China.
While a weaker currency generally benefits exporters and tourism, a sustained fall risks triggering capital outflows. The recent uptick in oil prices has also raised fears of faster inflation.
"A combination of a higher dollar, a weaker Chin[ese economy] and higher oil prices [has] become a dangerous cocktail for most of the ASEAN economies," Charu Chanana, market strategist at Saxo Markets in Singapore, told Nikkei Asia.
The ringgit and the baht are the worst performers in Southeast Asia this year against the dollar, falling 6.9% and 4.4%, respectively, through Oct. 13. The Vietnamese dong is down 3.4%, while Indonesia's rupiah and Singapore's dollar have held up relatively well against the greenback, slipping 2.1% and 0.7%, respectively. Nikkei Asia
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Malaysia’s Thailand Strategic Card – Analysis
The visit of newly elected Thai Prime Minister Srettha Thavisin to Malaysia comes at a vital opportune need for Thailand to ensure long term economic and geostrategic returns. Chief among the objectives will be to strengthen traditional domains of greater economic and trade returns, for both countries.
Continuous efforts are made to cement deeper trade and economic security with greater bilateral returns in investments and economic relations in all sectors, especially on high technology and green and digital economy. Malaysia’s growing advantages will be sought after and the spillover effects of Malaysia’s growing efforts in bringing in top international firms from the US and the exodus from China. This includes the mobility of expertise, talents and technology and startups. Other critical areas include food and energy security, especially on resources that Malaysia has a bigger advantage including oil and gas and palm oil and rare earths.
In return, Thailand has advantage in food security and also offering mutual returns in digitalisation, innovation and tourism spillover impact. Socio economic and people to people ties will continue to be enhanced for historical appreciation based on trust and healthy interdependence. Eurasian Review
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Malaysia's MPOC Programme BizMatch to Boost Collaboration Between African and Malaysian Businesses
KUALA LUMPUR: The Malaysian Palm Oil Council (MPOC) Business Matching (BizMatch) programme will be instrumental in cultivating partnerships and collaborations between African delegates and Malaysian palm oil exporters.
The business matching programme is part of a broader MPOC initiative in which 10 prominent industry representatives from oils and fats companies in seven African countries visited Malaysia under a trade and networking four-day visit to raise exports of Malaysian palm oil and related products to Africa.
MPOC chief executive officer Belvinder Sron said the council expects a productive session and trusts that this initiative will catalyse fruitful exchanges and connections between the two regions.
The visit includes various activities to provide a comprehensive insight into the oil palm sector.
Belvinder said the visit is a key component of MPOC’s market development efforts and is the third programme organised this year.
It serves as a follow-up to Deputy Prime Minister Datuk Seri Fadillah Yusof’s visit to Kenya earlier in June when he inaugurated the Malaysian Palm Oil Forum 2023 and met key oils and fats industry stakeholders to explore export opportunities to the East African region. He is also the Plantation and Commodities Minister. The Sun Daily
Replanting unproductive palm oil with smallholder plantations can help achieve Sustainable Development Goals in Sumatra, Indonesia
Oil palm (Elaeis guinensis) is a controversial crop. To assess its sustainability, we analysed the contribution of different types of plantations (smallholder, industrial and unproductive) towards meeting six Sustainable Development Goals. Using spatial econometric methods and data from 25,067 villages in Sumatra, Indonesia, we revealed that unproductive plantations are associated with more cases of malnutrition, worsened school access, more air pollution and increased criminality. We also proposed a strategy for sustainable palm oil expansion based on replanting unproductive plantations with either industrial or smallholder palm oil. Smallholder replanting was beneficial for five Goals (Zero poverty, Good health, Quality Education, Environmental preservation and Crime reduction), while the same intervention only improved two Goals in the industrial case (Zero poverty and Quality Education). Our appraisal is relevant to policymakers aiming towards the 2030 Agenda, organisations planning oil palm expansion, and retailers or consumers concerned about the sustainability of oil consumption.
Introduction
In 2015, all United Nations Member States adopted the 2030 Agenda for Sustainable Development, an urgent call for action to all countries to achieve sustainable development by 20301. The Sustainable Development Goals (SDGs) are at the core of the initiative - 17 guiding principles encompassing economic growth, environmental protection, global peace, access to healthcare, basic education and others that should be followed by all countries to aim towards a more sustainable future. Since its adoption, many public and private organisations have also relied on the SDGs to evaluate the sustainability of their activities. Nonetheless, this analysis can be challenging, especially when the activities evaluated can have complex outcomes for many different development dimensions. Palm oil production in tropical countries is a typical example of such complex interactions between different SDGs2. Nature Fosch, A., Ferraz de Arruda, G., Aleta, A. et al. Replanting unproductive palm oil with smallholder plantations can help achieve Sustainable Development Goals in Sumatra, Indonesia. Commun Earth Environ 4, 378 (2023). https://doi.org/10.1038/s43247-023-01037-4
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Malaysia-RM2.4bil allocation to Felda, Felcra & Risa to boost agro-commodity activities, smallholders
KUALA LUMPUR: The government has allocated RM2.4 billion to the Federal Land Development Authority (Felda), Felcra Bhd and the Rubber Industry Smallholders Development Authority (Risda) to invigorate agro-commodity activities further and enhance the socio-economic status of smallholders.
Prime minister Datuk Seri Anwar Ibrahim said as of June, the agro-commodity sector had contributed RM38 billion, equivalent to 5.0 per cent of the gross domestic product (GDP) and RM77.4 billion, or 11 per cent, to the country's exports.
"This impressive achievement comes despite facing numerous challenges and the uncertainties of the global economy.
"Among these challenges are the implications of non-tariff barriers enforced by importing countries like the European Union Deforestation-Free Regulation," he said at the 2024 Budget speech in Parliament today. New Straits Times
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Malaysian, Thai economies suffer as currencies slide vs. dollar
ASEAN depreciations bring higher import costs and increase inflation risks
SINGAPORE -- Southeast Asian currencies are trading near their lows for the year against the surging dollar, with the Malaysian ringgit and Thai baht leading the decline, as governments and businesses in the region worry about the economic impact of the depreciation.
The cheaper currencies are bringing higher import costs. Regional exporters, on the other hand, are struggling to take advantage of the slide, as uncertainties prevail in big markets, especially China.
While a weaker currency generally benefits exporters and tourism, a sustained fall risks triggering capital outflows. The recent uptick in oil prices has also raised fears of faster inflation.
"A combination of a higher dollar, a weaker Chin[ese economy] and higher oil prices [has] become a dangerous cocktail for most of the ASEAN economies," Charu Chanana, market strategist at Saxo Markets in Singapore, told Nikkei Asia.
The ringgit and the baht are the worst performers in Southeast Asia this year against the dollar, falling 6.9% and 4.4%, respectively, through Oct. 13. The Vietnamese dong is down 3.4%, while Indonesia's rupiah and Singapore's dollar have held up relatively well against the greenback, slipping 2.1% and 0.7%, respectively. Nikkei Asia
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Malaysia’s Thailand Strategic Card – Analysis
The visit of newly elected Thai Prime Minister Srettha Thavisin to Malaysia comes at a vital opportune need for Thailand to ensure long term economic and geostrategic returns. Chief among the objectives will be to strengthen traditional domains of greater economic and trade returns, for both countries.
Continuous efforts are made to cement deeper trade and economic security with greater bilateral returns in investments and economic relations in all sectors, especially on high technology and green and digital economy. Malaysia’s growing advantages will be sought after and the spillover effects of Malaysia’s growing efforts in bringing in top international firms from the US and the exodus from China. This includes the mobility of expertise, talents and technology and startups. Other critical areas include food and energy security, especially on resources that Malaysia has a bigger advantage including oil and gas and palm oil and rare earths.
In return, Thailand has advantage in food security and also offering mutual returns in digitalisation, innovation and tourism spillover impact. Socio economic and people to people ties will continue to be enhanced for historical appreciation based on trust and healthy interdependence. Eurasian Review
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Malaysia's MPOC Programme BizMatch to Boost Collaboration Between African and Malaysian Businesses
KUALA LUMPUR: The Malaysian Palm Oil Council (MPOC) Business Matching (BizMatch) programme will be instrumental in cultivating partnerships and collaborations between African delegates and Malaysian palm oil exporters.
The business matching programme is part of a broader MPOC initiative in which 10 prominent industry representatives from oils and fats companies in seven African countries visited Malaysia under a trade and networking four-day visit to raise exports of Malaysian palm oil and related products to Africa.
MPOC chief executive officer Belvinder Sron said the council expects a productive session and trusts that this initiative will catalyse fruitful exchanges and connections between the two regions.
The visit includes various activities to provide a comprehensive insight into the oil palm sector.
Belvinder said the visit is a key component of MPOC’s market development efforts and is the third programme organised this year.
It serves as a follow-up to Deputy Prime Minister Datuk Seri Fadillah Yusof’s visit to Kenya earlier in June when he inaugurated the Malaysian Palm Oil Forum 2023 and met key oils and fats industry stakeholders to explore export opportunities to the East African region. He is also the Plantation and Commodities Minister. The Sun Daily
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October 14, 2023
Malaysia's Budget 2024 Allocates RM100 mln in incentives for replanting palm oil
KUALA LUMPUR (Oct 13): The government will provide incentives for the Palm Oil Replanting Programme with an allocation of RM100 million to mitigate potential productivity issues in the production of fresh fruit bunches.
Prime Minister Datuk Seri Anwar Ibrahim said these incentives would be offered in the form of grants and loans to 7,000 private palm oil smallholders.
“By 2027, the area of mature oil palm, which is over 25 years old, is expected to reach over 560,000 hectares and this will affect the productivity of fresh fruit bunches with a loss of up to RM7 billion per year,” he said at the tabling of Budget 2024 in Dewan Rakyat today.
He said in an effort to sustain the nation’s palm oil industry, the government is allocating RM70 million to enhance the industry’s sustainability and intensify the campaign to address anti-palm oil sentiments on the international stage. – Bernama
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MPOA disappointed as Budget wish list unfulfilled
KUALA LUMPUR (Oct 13): The Malaysian Palm Oil Association (MPOA) has expressed disappointment that its "carefully outlined" wish list for Budget 2024 did not make it into the government’s budgetary priorities.
In a statement, MPOA chief executive Joseph Tek Choon Yee said the association's unanswered budgetary pleas underscore growing concerns that the industry’s substantial contributions to Malaysia’s economy may not have received “requisite attention and support” for 2024.
According to the association, its wish list included a call for a comprehensive review of the windfall profit levy (WPL) levied on the commodity sector since 1999, specifically aimed at alleviating the disproportionate burden on oil palm growers in Sabah and Sarawak.
“The association also emphasised the pressing need for a significant footprint of accelerated or intensified replanting of ageing oil palm trees, and advocated for tax incentives to support this endeavour.
“The key pleas are the footprint size and acceleration speed for replanting,” reiterated Tek in the statement.
The MPOA also proposed boosting plantation mechanisation, reviewing the multi-tier levy mechanism, and fostering a partnership with the government to address the sector’s role in the national energy transition, and its commitment to climate change, environmental, social and governance (ESG) compliance and traceability.
Under Budget 2024, the government is setting aside RM100 million as replanting incentives, to avoid old-age oil palms from reaching 560,000 hectares by 2027. The incentive is, however, will be offered as grants and loans to the 7,000 private smallholders. The Edge Malaysia
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Nigeria: CBN Lifts Forex Restrictions On Importation of Rice, Cement, Palm Oil, 40 Other Items
The Central Bank of Nigeria (CBN) yesterday, declared that importers of 43 items previously restricted from accessing foreign exchange (FX) at the official window are now allowed to purchase FX in the Nigerian foreign exchange market going forward.
The development came just as the CBN Governor, Mr. Olayemi Cardoso, has emphasised that the apex bank does not have a magic want to address the myraid of challenges facing the Nigerian economy.
The apex bank in June 2015, had initially included 41 items to the list of commodities which were not-valid to purchase FX from the market, citing the need to conserve the scarce forex and encourage domestic production for self-sufficiency and exports. The list was thereafter expanded to 43 items.
Some of the items listed then as not-fit-for forex included rice, cement, margarine, palm kernel products and vegetable oil, meat and processed meat products, vegetables and processed vegetable products, poultry chicken, private airplanes, tinned fish in sauce, roofing sheets wheelbarrows, head pans, among others.
However, in it's latest statement, the CBN Director, Corporate Communications, Dr. Isa AbdulMumin, said the central bank would continue to promote orderliness and professional conduct by all participants in the FX market segment to ensure that market forces determine exchange rates on a Willing Buyer - Willing Seller principle.
He stressed that the prevailing FX rates should be referenced from platforms such as the CBN website, FMDQ, and other recognised or appointed trading systems to promote price discovery, transparency, and credibility in the FX rates. All Africa
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Malaysia's Budget 2024 Allocates RM100 mln in incentives for replanting palm oil
KUALA LUMPUR (Oct 13): The government will provide incentives for the Palm Oil Replanting Programme with an allocation of RM100 million to mitigate potential productivity issues in the production of fresh fruit bunches.
Prime Minister Datuk Seri Anwar Ibrahim said these incentives would be offered in the form of grants and loans to 7,000 private palm oil smallholders.
“By 2027, the area of mature oil palm, which is over 25 years old, is expected to reach over 560,000 hectares and this will affect the productivity of fresh fruit bunches with a loss of up to RM7 billion per year,” he said at the tabling of Budget 2024 in Dewan Rakyat today.
He said in an effort to sustain the nation’s palm oil industry, the government is allocating RM70 million to enhance the industry’s sustainability and intensify the campaign to address anti-palm oil sentiments on the international stage. – Bernama
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MPOA disappointed as Budget wish list unfulfilled
KUALA LUMPUR (Oct 13): The Malaysian Palm Oil Association (MPOA) has expressed disappointment that its "carefully outlined" wish list for Budget 2024 did not make it into the government’s budgetary priorities.
In a statement, MPOA chief executive Joseph Tek Choon Yee said the association's unanswered budgetary pleas underscore growing concerns that the industry’s substantial contributions to Malaysia’s economy may not have received “requisite attention and support” for 2024.
According to the association, its wish list included a call for a comprehensive review of the windfall profit levy (WPL) levied on the commodity sector since 1999, specifically aimed at alleviating the disproportionate burden on oil palm growers in Sabah and Sarawak.
“The association also emphasised the pressing need for a significant footprint of accelerated or intensified replanting of ageing oil palm trees, and advocated for tax incentives to support this endeavour.
“The key pleas are the footprint size and acceleration speed for replanting,” reiterated Tek in the statement.
The MPOA also proposed boosting plantation mechanisation, reviewing the multi-tier levy mechanism, and fostering a partnership with the government to address the sector’s role in the national energy transition, and its commitment to climate change, environmental, social and governance (ESG) compliance and traceability.
Under Budget 2024, the government is setting aside RM100 million as replanting incentives, to avoid old-age oil palms from reaching 560,000 hectares by 2027. The incentive is, however, will be offered as grants and loans to the 7,000 private smallholders. The Edge Malaysia
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Nigeria: CBN Lifts Forex Restrictions On Importation of Rice, Cement, Palm Oil, 40 Other Items
The Central Bank of Nigeria (CBN) yesterday, declared that importers of 43 items previously restricted from accessing foreign exchange (FX) at the official window are now allowed to purchase FX in the Nigerian foreign exchange market going forward.
The development came just as the CBN Governor, Mr. Olayemi Cardoso, has emphasised that the apex bank does not have a magic want to address the myraid of challenges facing the Nigerian economy.
The apex bank in June 2015, had initially included 41 items to the list of commodities which were not-valid to purchase FX from the market, citing the need to conserve the scarce forex and encourage domestic production for self-sufficiency and exports. The list was thereafter expanded to 43 items.
Some of the items listed then as not-fit-for forex included rice, cement, margarine, palm kernel products and vegetable oil, meat and processed meat products, vegetables and processed vegetable products, poultry chicken, private airplanes, tinned fish in sauce, roofing sheets wheelbarrows, head pans, among others.
However, in it's latest statement, the CBN Director, Corporate Communications, Dr. Isa AbdulMumin, said the central bank would continue to promote orderliness and professional conduct by all participants in the FX market segment to ensure that market forces determine exchange rates on a Willing Buyer - Willing Seller principle.
He stressed that the prevailing FX rates should be referenced from platforms such as the CBN website, FMDQ, and other recognised or appointed trading systems to promote price discovery, transparency, and credibility in the FX rates. All Africa
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October 13, 2023
EU's Climate ambitions threaten a new wave of trade protectionism
Food Is Hot Campaign Issue in Elections From Argentina to Poland
Agnieszka de Sousa
Fri, October 13, 2023 at 12:00 AM EDT·7 min read
(Bloomberg) -- Whether it’s bread or onions, food has the power to make or break a country’s leadership. How nations secure their staples is looming large in elections across the world with war in Ukraine and now the Middle East.
Starting with New Zealand and Poland this weekend, at least a quarter of the global population will head to the polls over the next eight months or so. Those countries will be followed by Argentina, the Netherlands and Egypt, and then Indonesia and India in 2024. Among them are some of the top suppliers of everything from rice and palm oil to milk and soymeal. Others are strategic locations for the flow of staples like wheat.
Politicians have an eye on two core constituents: consumers and producers. Some governments aiming to stay in power are restricting exports of foodstuffs, proposing measures to protect rural communities, or slowing the pace of climate policies that would affect farmers.
Food is just one of a long list of electoral issues, but it has global repercussions. The politics threaten to impact global trade, prices and the economies of import-dependent nations. Erratic weather, meanwhile, has ravaged agricultural land from the US to China, and the phenomenon known as El Niño is back, risking further damage to crops. Yahoo/ Bloomberg
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GS Caltex, Posco team up on biofuel
South Korean oil refiner GS Caltex announced Thursday that it has secured a partnership with Posco International to expand their presence in the biofuel industry, accelerating efforts toward a green transformation.
The agreement was signed at the Posco Center in Gangnam, Seoul, Thursday, with top executives including GS Caltex CEO Hur Sae-hong and Posco International Vice Chairman and CEO Jeong Tak in attendance.
Through a joint venture, the two will build the new refinery facility in Kalimantan, Indonesia, with a combined investment of 260 billion won ($194 million). Starting with construction early next year, the facility is expected to operate in the second quarter of 2025.
The refinery is to boast annual production of 500,000 tons of palm oil as well as cooking oil, the company said. Korea Herald
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Nextgreen forms JV with private firm P Teguh Services to supply biodiesel
KUALA LUMPUR (OCT 11): Nextgreen Global Bhd is partnering with private company P Teguh Services Sdn Bhd to venture into the trading, supply and export of biodiesel, edible cooking oil and related products, such as equipment and facilities.
Nextgreen, in a bourse filing Wednesday, said the venture will "maximise the value of palm oil waste and circular economy (waste-to-value) concept of the Nextgreen group".
As such, its wholly-owned Nextgreen Resources Sdn Bhd had entered into a joint venture agreement with P Teguh Services — owned by one Datuk Seri Azmin Mustam Abdul Karim, the managing director of petroleum retailer Petro Teguh (M) Sdn Bhd — for the partnership, which may engage in other related businesses that the parties mutually agree to.
Nextgreen is developing a Green Technology Park that spans over an area of 410 acres in Pekan, Pahang. The group employs the preconditioning refiner chemical — recycle bleached mechanised pulp technology to turn empty fruit bunches into pulp.
In the first half ended June 30, 2023, Nextgreen’s net profit jumped 57.4% to RM2.33 million from RM1.48 million in the same period last year, as revenue rose to RM23.95 million from RM23.31 million. The counter was trading at 88 sen per share on Oct 11, having climbed 18% year-to-date. The Edge Malaysia
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MPOC Europe Alert No. 44
13 October 2023
The Council of the EU formally adopts the revised Renewable Energy Directive (RED III)
On 9 October 2023, the Council of the EU officially adopted the revised EU Renewable Energy Directive (RED III). This follows the adoption by the European Parliament on 12 September 2023.
Most notably, the RED III will increase the target for the share of renewable energy in the EU’s overall energy consumption from 32% to 42.5% by 2030 “with an additional 2.5% indicative top up that would allow to reach 45%”. The RED III sets a binding combined sub-target of “5.5% for advanced biofuels (generally derived from non-food-based feedstocks) and renewable fuels of non-biological origin (mostly renewable hydrogen and hydrogen-based synthetic fuels) in the share of renewable energies supplied to the transport sector”.
Regarding transport, the RED III will allow EU Member States to choose between either a binding target of 14.5% reduction of greenhouse gas (GHG) intensity in transport from the use of renewables by 2030 or a binding share of at least 29% of renewables within the final consumption of energy in the transport sector by 2030.
Regarding the Delegated Regulation (EU) 2019/807 as regards the determination of high ILUC-risk feedstock for which a significant expansion of the production area into land with high carbon stock is observed and the certification of low ILUC-risk biofuels, bioliquids and biomass fuels, the RED III foresees a review of the Delegated Act every three years, which should, if appropriate, lead to an amendment of the criteria established in the Delegated Act. According to the RED II and RED III, the Commission was to conduct the review of the criteria by 1 September 2023.
Possible actions: The revised RED III maintains the EU’s approach to discriminate against oil palm crop-based biofuel and palm oil as a biofuel feedstock.
Malaysia should continue engaging with the European Commission and with key EU Member States to ensure that sustainable palm oil be part of the world’s and of the EU’s ‘green’ transition. This may soon become a matter of negotiation should the WTO decision in the palm oil dispute brought by Malaysia against the EU be adjudicated in favour of Malaysia. MPOC EUROPE
EU's Climate ambitions threaten a new wave of trade protectionism
- National climate policies are driving new trends of trade protectionism, with the EU at the centre of many of these fights. We expect disputes between the EU and many developing nations, in particular, to intensify over the 2020s given the inability of many emerging markets to meet the EU’s environmental policy thresholds.
- Protectionist concerns in the electric vehicle (EV) industry, as well as related sectors including critical materials, also threaten significant impediments to international trade. Aggressive subsidy deployment to promote EV development will risk locking the global EV industry in a “race to the bottom” spiral of government support.
- The absence of a functioning international trade dispute settlement mechanism means that individual trade cases will be the most instructive to watch in terms of how future climate-related trade restrictive themes develop. This will include retaliation, both in terms of foreign trade and domestic industrial policy. EIU
Food Is Hot Campaign Issue in Elections From Argentina to Poland
Agnieszka de Sousa
Fri, October 13, 2023 at 12:00 AM EDT·7 min read
(Bloomberg) -- Whether it’s bread or onions, food has the power to make or break a country’s leadership. How nations secure their staples is looming large in elections across the world with war in Ukraine and now the Middle East.
Starting with New Zealand and Poland this weekend, at least a quarter of the global population will head to the polls over the next eight months or so. Those countries will be followed by Argentina, the Netherlands and Egypt, and then Indonesia and India in 2024. Among them are some of the top suppliers of everything from rice and palm oil to milk and soymeal. Others are strategic locations for the flow of staples like wheat.
Politicians have an eye on two core constituents: consumers and producers. Some governments aiming to stay in power are restricting exports of foodstuffs, proposing measures to protect rural communities, or slowing the pace of climate policies that would affect farmers.
Food is just one of a long list of electoral issues, but it has global repercussions. The politics threaten to impact global trade, prices and the economies of import-dependent nations. Erratic weather, meanwhile, has ravaged agricultural land from the US to China, and the phenomenon known as El Niño is back, risking further damage to crops. Yahoo/ Bloomberg
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GS Caltex, Posco team up on biofuel
South Korean oil refiner GS Caltex announced Thursday that it has secured a partnership with Posco International to expand their presence in the biofuel industry, accelerating efforts toward a green transformation.
The agreement was signed at the Posco Center in Gangnam, Seoul, Thursday, with top executives including GS Caltex CEO Hur Sae-hong and Posco International Vice Chairman and CEO Jeong Tak in attendance.
Through a joint venture, the two will build the new refinery facility in Kalimantan, Indonesia, with a combined investment of 260 billion won ($194 million). Starting with construction early next year, the facility is expected to operate in the second quarter of 2025.
The refinery is to boast annual production of 500,000 tons of palm oil as well as cooking oil, the company said. Korea Herald
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Nextgreen forms JV with private firm P Teguh Services to supply biodiesel
KUALA LUMPUR (OCT 11): Nextgreen Global Bhd is partnering with private company P Teguh Services Sdn Bhd to venture into the trading, supply and export of biodiesel, edible cooking oil and related products, such as equipment and facilities.
Nextgreen, in a bourse filing Wednesday, said the venture will "maximise the value of palm oil waste and circular economy (waste-to-value) concept of the Nextgreen group".
As such, its wholly-owned Nextgreen Resources Sdn Bhd had entered into a joint venture agreement with P Teguh Services — owned by one Datuk Seri Azmin Mustam Abdul Karim, the managing director of petroleum retailer Petro Teguh (M) Sdn Bhd — for the partnership, which may engage in other related businesses that the parties mutually agree to.
Nextgreen is developing a Green Technology Park that spans over an area of 410 acres in Pekan, Pahang. The group employs the preconditioning refiner chemical — recycle bleached mechanised pulp technology to turn empty fruit bunches into pulp.
In the first half ended June 30, 2023, Nextgreen’s net profit jumped 57.4% to RM2.33 million from RM1.48 million in the same period last year, as revenue rose to RM23.95 million from RM23.31 million. The counter was trading at 88 sen per share on Oct 11, having climbed 18% year-to-date. The Edge Malaysia
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MPOC Europe Alert No. 44
13 October 2023
The Council of the EU formally adopts the revised Renewable Energy Directive (RED III)
On 9 October 2023, the Council of the EU officially adopted the revised EU Renewable Energy Directive (RED III). This follows the adoption by the European Parliament on 12 September 2023.
Most notably, the RED III will increase the target for the share of renewable energy in the EU’s overall energy consumption from 32% to 42.5% by 2030 “with an additional 2.5% indicative top up that would allow to reach 45%”. The RED III sets a binding combined sub-target of “5.5% for advanced biofuels (generally derived from non-food-based feedstocks) and renewable fuels of non-biological origin (mostly renewable hydrogen and hydrogen-based synthetic fuels) in the share of renewable energies supplied to the transport sector”.
Regarding transport, the RED III will allow EU Member States to choose between either a binding target of 14.5% reduction of greenhouse gas (GHG) intensity in transport from the use of renewables by 2030 or a binding share of at least 29% of renewables within the final consumption of energy in the transport sector by 2030.
Regarding the Delegated Regulation (EU) 2019/807 as regards the determination of high ILUC-risk feedstock for which a significant expansion of the production area into land with high carbon stock is observed and the certification of low ILUC-risk biofuels, bioliquids and biomass fuels, the RED III foresees a review of the Delegated Act every three years, which should, if appropriate, lead to an amendment of the criteria established in the Delegated Act. According to the RED II and RED III, the Commission was to conduct the review of the criteria by 1 September 2023.
Possible actions: The revised RED III maintains the EU’s approach to discriminate against oil palm crop-based biofuel and palm oil as a biofuel feedstock.
Malaysia should continue engaging with the European Commission and with key EU Member States to ensure that sustainable palm oil be part of the world’s and of the EU’s ‘green’ transition. This may soon become a matter of negotiation should the WTO decision in the palm oil dispute brought by Malaysia against the EU be adjudicated in favour of Malaysia. MPOC EUROPE
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October 12, 2023
Indonesia to launch crude palm oil futures exchange on Oct 13, 2023
JAKARTA, Oct 11 (Reuters) - Indonesia, the world's biggest palm oil exporter, will launch its crude palm oil (CPO) futures exchange on Friday, but it will not make trading via the exchange mandatory, its chief regulator told Reuters on Wednesday.
Authorities in the Southeast Asian country had previously planned to make it mandatory for all CPO exports to go through the exchange, in order to drive global palm oil prices and create benchmarks similar to those in Kuala Lumpur and Rotterdam.
"This future exchange will hopefully create the CPO price reference for Indonesia, so we can have data and create better policies related to the industry," Didid Noordiatmoko, head of the regulator BAPPEBTI, said in a phone interview.
The Indonesia Commodity and Derivatives Exchange (ICDX) has been appointed as the exchange, and transactions will be quoted in the rupiah currency, Didid said.
Indonesia's Palm Oil Association and analysts were lukewarm on the introduction of the exchange.
Head of Indonesia’s Palm Oil Association (GAPKI) said that as long as it was not mandatory, the futures exchange would not be a problem. "However, it would be interesting, if it could be used for hedging," Eddy Martono said.
Most Indonesian palm oil exporters currently conduct sales directly with buyers without going through an exchange, while auctions held by state trading company KPB Nusantara only offers physical palm oil and not futures contracts. NASDAQ/ REUTERS
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KPBN CPO Price October 12 2023 Increases 0.73 Percent, Ahead of the Inauguration of the Indonesian CPO Exchange
InfoSAWIT, JAKARTA – The price of crude palm oil (CPO) at PT. Kharisma Bersama Nusantara Marketing (KPBN) was recorded to have increased to IDR 10,745/kg on Thursday (12/10/2023), thus the CPO price saw an increase of around IDR 79/kg, or an increase of around 0.73% when compared to the CPO price on Tuesday (10/10/2023) which reached IDR 10,666/kg.
From information obtained by InfoSAWIT from KPBN, the CPO price for Belawan & Dumai is set at IDR 10,666/Kg. The CPO price in Talang Duku is set at Rp. 10,545/kg. InfoSawit
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Cheap sunflower oil from Russia, Ukraine rattles palm oil market
MUMBAI (Oct 11): A flood of cheap sunflower oil from Russia and Ukraine is putting downward pressure on palm oil prices, as the two top producers take advantage of currency depreciation to grab a larger share of the edible oils market.
Last year, palm oil prices soared after Russia's invasion of Ukraine disrupted sunflower oil supplies from the Black Sea region.
Now, sunflower oil, which typically commands a hefty premium, is cheaper than soyoil and holding a negligible premium over palm oil, said Vipin Gupta, chief executive officer of Dubai-based trader Glentech Group.
"Aggressive selling of sunoil from Black Sea region is putting pressure on palm oil and other edible oils," he said.
Crude sunflower oil is offered at US$895 a metric tonne including cost, insurance and freight (CIF) to India for October shipments, compared with US$850 for crude palm oil, dealers said.
A year ago, sunflower oil held a premium of over US$400 per tonne over palm oil, compared to US$45 now.
Russia has been harvesting a record sunflower seed crop of more than 17 million tonnes and farmers are aggressively selling seeds, said a leading Russian edible oil refiner who declined to be identified. The Edge Malaysia
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Musim Mas Achieves ISPO Certification for All Upstream Operations, Commits to Sustainable Palm Oil
JAKARTA, Indonesia, Oct. 12, 2023 /PRNewswire/ -- Palm oil and its derivatives have become essential commodities and a major contributor to Indonesia's exports. However, the sector has been in the spotlight due to concerns over the risks of deforestation, forest degradation, and loss of biodiversity.
To address the issue, the Indonesian government, through the Ministry of Agriculture, developed the Indonesian Sustainable Palm Oil (ISPO) certification standard in 2011 to ensure palm oil production in Indonesia is sustainable. ISPO certification is mandatory for all Palm Oil Plantation Business Actors and Planters. ISPO was also updated to include new benchmarks under Presidential Regulation 44 of 2020. This includes enhanced efforts to accelerate the reduction of carbon emissions, improve environmental management and social protection, and increase the competitiveness of Indonesian palm oil.
With its commitment to sustainability, Musim Mas Group achieved 100% ISPO certification for its 17 upstream subsidiaries last August.
"For Musim Mas, sustainability means responsibly providing high-quality and innovative palm oil products and derivatives. Together with stakeholders in this industry, we try to find the best solutions to address carbon gas emissions, biodiversity, and human rights, including workers' rights. The ISPO certification that we received further strengthens our commitment to running our business following applicable laws," said Olivier Tichit, Director of Sustainability for Musim Mas Group. PRNASIA
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Shaping a healthier and more sustainable palm oil industry
Exploring the scientific path to a greener future
Dr Roger Clemens
THE conversation about palm oil often focuses around environmental considerations. This focus, however, largely overshadows its role in medical applications. Although the topic may not be at the forefront of people’s thoughts, there are several good reasons to pay attention to palm oil's medical benefits.
At a time when people are becoming more health conscious, it is important to note that palm oil contains an array of potentially beneficial compounds like tocotrienols, otherwise known as vitamin E, and various carotenoids, which may reduce risks associated with some diseases.
In addition, this array of bioactives in palm oil, especially red palm oil, appear to support your immune system, and the innate phytosterols may participate in managing blood cholesterol levels, thereby reducing your risk of cardiovascular disease, and heart attack or stroke. These bioactive compounds, often considered as mere “chemical terms”, warrant more attention from the public and research institutions.
As we navigate through the complex narratives of deforestation, animal habitats, and saturated fats, let us not forget the medicinal treasure this resource offers. What if palm oil is more than just something with which we cook? In medical practice, palm oil is often a staple in drug development, a driver for medical breakthroughs, and represents a case study of the growing need for sustainability.
For instance, palmitic acid, often criticised as a saturated fat, is a core component in the formulation of painkillers like ibuprofen and acetaminophen. It is also used in topical antibiotics like tetracycline, which provides a crucial alternative for those allergic to common options like erythromycin. The key question is whether we can really afford to turn our backs on a resource that is so important in health care. The Sun Daily
Indonesia to launch crude palm oil futures exchange on Oct 13, 2023
JAKARTA, Oct 11 (Reuters) - Indonesia, the world's biggest palm oil exporter, will launch its crude palm oil (CPO) futures exchange on Friday, but it will not make trading via the exchange mandatory, its chief regulator told Reuters on Wednesday.
Authorities in the Southeast Asian country had previously planned to make it mandatory for all CPO exports to go through the exchange, in order to drive global palm oil prices and create benchmarks similar to those in Kuala Lumpur and Rotterdam.
"This future exchange will hopefully create the CPO price reference for Indonesia, so we can have data and create better policies related to the industry," Didid Noordiatmoko, head of the regulator BAPPEBTI, said in a phone interview.
The Indonesia Commodity and Derivatives Exchange (ICDX) has been appointed as the exchange, and transactions will be quoted in the rupiah currency, Didid said.
Indonesia's Palm Oil Association and analysts were lukewarm on the introduction of the exchange.
Head of Indonesia’s Palm Oil Association (GAPKI) said that as long as it was not mandatory, the futures exchange would not be a problem. "However, it would be interesting, if it could be used for hedging," Eddy Martono said.
Most Indonesian palm oil exporters currently conduct sales directly with buyers without going through an exchange, while auctions held by state trading company KPB Nusantara only offers physical palm oil and not futures contracts. NASDAQ/ REUTERS
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KPBN CPO Price October 12 2023 Increases 0.73 Percent, Ahead of the Inauguration of the Indonesian CPO Exchange
InfoSAWIT, JAKARTA – The price of crude palm oil (CPO) at PT. Kharisma Bersama Nusantara Marketing (KPBN) was recorded to have increased to IDR 10,745/kg on Thursday (12/10/2023), thus the CPO price saw an increase of around IDR 79/kg, or an increase of around 0.73% when compared to the CPO price on Tuesday (10/10/2023) which reached IDR 10,666/kg.
From information obtained by InfoSAWIT from KPBN, the CPO price for Belawan & Dumai is set at IDR 10,666/Kg. The CPO price in Talang Duku is set at Rp. 10,545/kg. InfoSawit
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Cheap sunflower oil from Russia, Ukraine rattles palm oil market
MUMBAI (Oct 11): A flood of cheap sunflower oil from Russia and Ukraine is putting downward pressure on palm oil prices, as the two top producers take advantage of currency depreciation to grab a larger share of the edible oils market.
Last year, palm oil prices soared after Russia's invasion of Ukraine disrupted sunflower oil supplies from the Black Sea region.
Now, sunflower oil, which typically commands a hefty premium, is cheaper than soyoil and holding a negligible premium over palm oil, said Vipin Gupta, chief executive officer of Dubai-based trader Glentech Group.
"Aggressive selling of sunoil from Black Sea region is putting pressure on palm oil and other edible oils," he said.
Crude sunflower oil is offered at US$895 a metric tonne including cost, insurance and freight (CIF) to India for October shipments, compared with US$850 for crude palm oil, dealers said.
A year ago, sunflower oil held a premium of over US$400 per tonne over palm oil, compared to US$45 now.
Russia has been harvesting a record sunflower seed crop of more than 17 million tonnes and farmers are aggressively selling seeds, said a leading Russian edible oil refiner who declined to be identified. The Edge Malaysia
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Musim Mas Achieves ISPO Certification for All Upstream Operations, Commits to Sustainable Palm Oil
JAKARTA, Indonesia, Oct. 12, 2023 /PRNewswire/ -- Palm oil and its derivatives have become essential commodities and a major contributor to Indonesia's exports. However, the sector has been in the spotlight due to concerns over the risks of deforestation, forest degradation, and loss of biodiversity.
To address the issue, the Indonesian government, through the Ministry of Agriculture, developed the Indonesian Sustainable Palm Oil (ISPO) certification standard in 2011 to ensure palm oil production in Indonesia is sustainable. ISPO certification is mandatory for all Palm Oil Plantation Business Actors and Planters. ISPO was also updated to include new benchmarks under Presidential Regulation 44 of 2020. This includes enhanced efforts to accelerate the reduction of carbon emissions, improve environmental management and social protection, and increase the competitiveness of Indonesian palm oil.
With its commitment to sustainability, Musim Mas Group achieved 100% ISPO certification for its 17 upstream subsidiaries last August.
"For Musim Mas, sustainability means responsibly providing high-quality and innovative palm oil products and derivatives. Together with stakeholders in this industry, we try to find the best solutions to address carbon gas emissions, biodiversity, and human rights, including workers' rights. The ISPO certification that we received further strengthens our commitment to running our business following applicable laws," said Olivier Tichit, Director of Sustainability for Musim Mas Group. PRNASIA
----------
Shaping a healthier and more sustainable palm oil industry
Exploring the scientific path to a greener future
Dr Roger Clemens
THE conversation about palm oil often focuses around environmental considerations. This focus, however, largely overshadows its role in medical applications. Although the topic may not be at the forefront of people’s thoughts, there are several good reasons to pay attention to palm oil's medical benefits.
At a time when people are becoming more health conscious, it is important to note that palm oil contains an array of potentially beneficial compounds like tocotrienols, otherwise known as vitamin E, and various carotenoids, which may reduce risks associated with some diseases.
In addition, this array of bioactives in palm oil, especially red palm oil, appear to support your immune system, and the innate phytosterols may participate in managing blood cholesterol levels, thereby reducing your risk of cardiovascular disease, and heart attack or stroke. These bioactive compounds, often considered as mere “chemical terms”, warrant more attention from the public and research institutions.
As we navigate through the complex narratives of deforestation, animal habitats, and saturated fats, let us not forget the medicinal treasure this resource offers. What if palm oil is more than just something with which we cook? In medical practice, palm oil is often a staple in drug development, a driver for medical breakthroughs, and represents a case study of the growing need for sustainability.
For instance, palmitic acid, often criticised as a saturated fat, is a core component in the formulation of painkillers like ibuprofen and acetaminophen. It is also used in topical antibiotics like tetracycline, which provides a crucial alternative for those allergic to common options like erythromycin. The key question is whether we can really afford to turn our backs on a resource that is so important in health care. The Sun Daily
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October 10, 2023
European Union palming off deforestation regulation to smallholders in Indonesia
10 October 2023
Authors: Made Anthony Iswara, Dimitri Swasthika Nurshadrina and Asep Suryahadi, SMERU Research Institute
The European Union’s newest deforestation regulation may spell trouble for smallholders in palm oil producing countries. Effective from 29 June 2023, the European Union has implemented the European Union Deforestation Regulation (EUDR), which is aimed at ensuring that products consumed by EU citizens do not contribute to global deforestation or forest degradation.
While this may seem like a noble endeavour, a more cynical view might suggest that this is a veiled protectionist measure. The European Union may be attempting to benefit from trade advantages by setting barriers to entry for products from countries that cannot easily comply with the new regulation, such as palm oil from developing countries. This will make it easier for European producers of alternative goods, such as sunflower oil, to dominate the market — both domestically and internationally.
The EUDR will hinder imports of products that have been accused of contributing to deforestation, such as palm oil, which will bruise Indonesia’s economy. The palm oil industry contributes approximately 3.5 per cent of Indonesia’s GDP and provided employment to 4.3 million people in 2021. This number only includes farmers working directly on palm oil plantations and excludes the indirect contribution of the palm oil sector, which is estimated to encompass around 12 million people.
The EUDR will particularly hurt smallholders due to their limited capacity to comply with the regulation. Smallholders play an important role in Indonesia’s palm oil sector, contributing more than 34 per cent of the country’s total palm oil output in 2021. But despite their critical role in palm oil production, smallholders have a lot on their plates. In an industry dominated by larger corporate groups, smallholders have limited bargaining power and capital to participate fully in the palm oil supply chain. As a result, they often sell their fresh fruit bunches at prices below regulated rates. East Asia Forum
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Indonesia is rapidly asserting itself as a formidable presence on the global stage
In the wake of the 2023 ASEAN Business Advisory Council (BAC) Summit's conclusion, Indonesia's emergence as a global leader is taking centre stage. European policymakers should take note.
Assuming the pivotal roles of ASEAN's Chair this year and the G20 Presidency in 2022, Indonesia has rightfully earned global recognition for its potential to not only drive regional development but also set a compelling global example.
With Southeast Asia's largest economy and the world's third-largest democracy, Indonesia is rapidly asserting itself as a formidable presence on the global stage.
According to some forecasts, Indonesia could even overtake Russia by 2026, becoming the sixth-largest economy worldwide when measured by purchasing power parity (PPP). Yahoo News
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Uganda-Oil Palm growers tipped on environmental protection
What you need to know:
The palm oil project is targeted in five districts including Kalangala, Buvuma, Mukono, Masaka and Mayuge.
Environmental experts have expressed concern over the disappearing forest cover and the increasing change in land use where large pieces have illegally been converted into farmland.
This was in Kalangala during the launch of the National Oil Palm Project (NOPP), the environmental, social and sustainability component by Solidaridad an international Civil Society Organization last Friday.
Mr Robert Charles Aguma, the environment and safety manager of NOPP in the Ministry of Agriculture, Animal Industry and Fisheries (MAAIF), said that farmers who have planted in buffer zones, especially in Kalangala have largely affected the environment.
"Water levels have risen, we no longer see the original lowest water marks of the lake, where we see the water now is not where it was originally. We are doing interventions to restore, the environment," he said. MonitorUG
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Flag carrier Garuda Indonesia completes flight test with palm oil-blended jet fuel
JAKARTA, Oct 10 (Reuters) - Flag carrier Garuda Indonesia (GIAA.JK) said on Tuesday it has completed a flight test using a palm oil-blended jet fuel on a Boeing 737-800NG aircraft.
The plane flew more than 130 km (80 miles) from the capital Jakarta to Pelabuhan Ratu in the southern part of Java island last week, using jet fuel containing 2.4% palm content, Garuda chief executive Irfan Setiaputra said in a statement.
"With these results, Garuda Indonesia is ready to explore the use of sustainable aviation fuel on commercial flights," Irfan said, adding that a wider use of the fuel would be based on a comprehensive study.
Garuda had conducted a static test and engine ground test since July prior to the flight test.
The world's biggest palm oil producer, Indonesia has been pushing for wider use of edible oils and a reduction in crude oil imports.
In 2021, the country ran a flight test with the same fuel on an aircraft made by state-owned Dirgantara Indonesia, flying from the city Bandung in West Java to the capital Jakarta.
Reporting by Stefanno Sulaiman, Bernadette Christina; Editing by Lincoln Feast. Reuters
European Union palming off deforestation regulation to smallholders in Indonesia
10 October 2023
Authors: Made Anthony Iswara, Dimitri Swasthika Nurshadrina and Asep Suryahadi, SMERU Research Institute
The European Union’s newest deforestation regulation may spell trouble for smallholders in palm oil producing countries. Effective from 29 June 2023, the European Union has implemented the European Union Deforestation Regulation (EUDR), which is aimed at ensuring that products consumed by EU citizens do not contribute to global deforestation or forest degradation.
While this may seem like a noble endeavour, a more cynical view might suggest that this is a veiled protectionist measure. The European Union may be attempting to benefit from trade advantages by setting barriers to entry for products from countries that cannot easily comply with the new regulation, such as palm oil from developing countries. This will make it easier for European producers of alternative goods, such as sunflower oil, to dominate the market — both domestically and internationally.
The EUDR will hinder imports of products that have been accused of contributing to deforestation, such as palm oil, which will bruise Indonesia’s economy. The palm oil industry contributes approximately 3.5 per cent of Indonesia’s GDP and provided employment to 4.3 million people in 2021. This number only includes farmers working directly on palm oil plantations and excludes the indirect contribution of the palm oil sector, which is estimated to encompass around 12 million people.
The EUDR will particularly hurt smallholders due to their limited capacity to comply with the regulation. Smallholders play an important role in Indonesia’s palm oil sector, contributing more than 34 per cent of the country’s total palm oil output in 2021. But despite their critical role in palm oil production, smallholders have a lot on their plates. In an industry dominated by larger corporate groups, smallholders have limited bargaining power and capital to participate fully in the palm oil supply chain. As a result, they often sell their fresh fruit bunches at prices below regulated rates. East Asia Forum
----------
Indonesia is rapidly asserting itself as a formidable presence on the global stage
In the wake of the 2023 ASEAN Business Advisory Council (BAC) Summit's conclusion, Indonesia's emergence as a global leader is taking centre stage. European policymakers should take note.
Assuming the pivotal roles of ASEAN's Chair this year and the G20 Presidency in 2022, Indonesia has rightfully earned global recognition for its potential to not only drive regional development but also set a compelling global example.
With Southeast Asia's largest economy and the world's third-largest democracy, Indonesia is rapidly asserting itself as a formidable presence on the global stage.
According to some forecasts, Indonesia could even overtake Russia by 2026, becoming the sixth-largest economy worldwide when measured by purchasing power parity (PPP). Yahoo News
---------
Uganda-Oil Palm growers tipped on environmental protection
What you need to know:
The palm oil project is targeted in five districts including Kalangala, Buvuma, Mukono, Masaka and Mayuge.
Environmental experts have expressed concern over the disappearing forest cover and the increasing change in land use where large pieces have illegally been converted into farmland.
This was in Kalangala during the launch of the National Oil Palm Project (NOPP), the environmental, social and sustainability component by Solidaridad an international Civil Society Organization last Friday.
Mr Robert Charles Aguma, the environment and safety manager of NOPP in the Ministry of Agriculture, Animal Industry and Fisheries (MAAIF), said that farmers who have planted in buffer zones, especially in Kalangala have largely affected the environment.
"Water levels have risen, we no longer see the original lowest water marks of the lake, where we see the water now is not where it was originally. We are doing interventions to restore, the environment," he said. MonitorUG
---------
Flag carrier Garuda Indonesia completes flight test with palm oil-blended jet fuel
JAKARTA, Oct 10 (Reuters) - Flag carrier Garuda Indonesia (GIAA.JK) said on Tuesday it has completed a flight test using a palm oil-blended jet fuel on a Boeing 737-800NG aircraft.
The plane flew more than 130 km (80 miles) from the capital Jakarta to Pelabuhan Ratu in the southern part of Java island last week, using jet fuel containing 2.4% palm content, Garuda chief executive Irfan Setiaputra said in a statement.
"With these results, Garuda Indonesia is ready to explore the use of sustainable aviation fuel on commercial flights," Irfan said, adding that a wider use of the fuel would be based on a comprehensive study.
Garuda had conducted a static test and engine ground test since July prior to the flight test.
The world's biggest palm oil producer, Indonesia has been pushing for wider use of edible oils and a reduction in crude oil imports.
In 2021, the country ran a flight test with the same fuel on an aircraft made by state-owned Dirgantara Indonesia, flying from the city Bandung in West Java to the capital Jakarta.
Reporting by Stefanno Sulaiman, Bernadette Christina; Editing by Lincoln Feast. Reuters
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October 09. 2023
Russia and Indonesia: The Trade and Investment Dynamics
Russia and Indonesia have historically been close partners. Indonesia does not support Russia’s isolation from the West, and the two are trying to strengthen the strategic partnership between them. For Russia, Indonesia is a window into the ASEAN and the Indo-Pacific region. It is also is a rapidly growing economy, which is anticipated to overtake Russia in coming years and has an ambition to become the sixth-largest economy in the world (in PPP values). This pushes Russia, as its focusses on Asia, to seek closer ties with the south-east Asian giant. Yet the two countries have nevertheless faced significant geographic and geopolitical constraints. Indonesia, being a self-interested actor on international arena, pushes for a more independent foreign policy which also includes not choosing sides between the West and Russia. This neatly falls into the multi-vector foreign policy agenda pursued by Indonesia and other Asian countries. Rather the country also adheres to neutrality and pursues policies which allows it to increase its manoeuvrability on the global stage.
Russia-Indonesia Bilateral Trade
The volume of bilateral trade between Russia and Indonesia is growing: Indonesia reported that in 2022 it amounted to US$3.7 billion, while the Russian side recorded slightly more than US$4 billion of bilateral commercial activity. The trend had been visible over recent years when, for example in 2021, Russia’s trade turnover with Indonesia amounted to US$3.3 billion, an increase of 40.65% compared to 2020. Russia Briefing
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The Disturbing Connection Between Nickel Mining and Deforestation in Indonesia
Several major companies, including US carmaker Ford, Brazil’s Vale, China’s Tsingshan, and Hong Kong’s Jardine Matheson, have invested in nickel projects in Indonesia that are causing widespread deforestation in some of the world’s most biodiverse forests. New data from environmental group Mighty Earth and its partner Brown Brothers Energy and Environment reveals that approximately 76,301 hectares of tropical forests, equivalent to the size of New York City, have been cleared within 329 nickel concessions. Around 30% of this area, or 23,000 hectares, has been deforested since 2019 due to the increased demand for electric cars and the nickel batteries required to power them. Indonesia, with its vast nickel reserves, hopes to become a major player in the global electric vehicle supply chain. However, the deforestation, along with waste, pollution, high carbon emissions, and the displacement of communities, has put pressure on both the government and mining companies to address these issues. It has also pushed carmakers to seek alternative sources of nickel, such as Australia. In March, President Joko Widodo announced that Indonesia would intensify monitoring of the sector and require companies to reforest depleted mining areas. Vigour Times
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PNG-Laws, land needed for industry
OIL Palm Industry Corporation (Opic) general secretary Kepson Pupita says the oil palm industry which generates about average of K2.8 billion (2022) annually in export earnings has a huge task of meeting the Government’s K20 billion target by 2027.
Pupita said this would be possible through policy change and importantly having access to customary land for development of oil palm plantations.
Pupita said this during the validation workshop of the PNG Oil Palm Policy and PNG Oil Palm Industry Authority Bill in Port Moresby on Saturday.
“Agriculture has been a number policy to address the social issues we are having in the country, and oil palm is a leading commodity in the agricultural sector has been tasked to review its legislation,” he said.
“Before the bill, we need to do the policy.
“We have conducted three regional stakeholder consultations with the smallholder and milling companies involved.
“Right now, we have 240,000 planted hectares, to bring that K20 billion by 2027 annually.
“We have to develop 1.1 million hectares.
“The 240,000 hectares is from 1968 to now.
“PNG is already a 100 per cent globally certified crude palm oil producer. Legislation and law or RSPO (roundtable on sustainable palm oil) are already accepted so we have less issue to be worried, our oil has already been certified.
“The next challenge is 1.5 million hectares is a lot, savannah land, we have five to six million hectares.
“There’s massive land but whether we have investors, it is a Government challenge, but the legislation has to go through.
“Government must support this.
“Unemployment is high in the country now and migration into urban centres is very high, this programme of oil palm will bring people back into the rural areas, back to their land.
“In oil palm, the private sector has dominated this industry, we’ve got to take the initiative and drive the reforms.”
Oil Palm Minister Francis Maneke encouraged MPs to support the growth of the industry. The National PG
Russia and Indonesia: The Trade and Investment Dynamics
Russia and Indonesia have historically been close partners. Indonesia does not support Russia’s isolation from the West, and the two are trying to strengthen the strategic partnership between them. For Russia, Indonesia is a window into the ASEAN and the Indo-Pacific region. It is also is a rapidly growing economy, which is anticipated to overtake Russia in coming years and has an ambition to become the sixth-largest economy in the world (in PPP values). This pushes Russia, as its focusses on Asia, to seek closer ties with the south-east Asian giant. Yet the two countries have nevertheless faced significant geographic and geopolitical constraints. Indonesia, being a self-interested actor on international arena, pushes for a more independent foreign policy which also includes not choosing sides between the West and Russia. This neatly falls into the multi-vector foreign policy agenda pursued by Indonesia and other Asian countries. Rather the country also adheres to neutrality and pursues policies which allows it to increase its manoeuvrability on the global stage.
Russia-Indonesia Bilateral Trade
The volume of bilateral trade between Russia and Indonesia is growing: Indonesia reported that in 2022 it amounted to US$3.7 billion, while the Russian side recorded slightly more than US$4 billion of bilateral commercial activity. The trend had been visible over recent years when, for example in 2021, Russia’s trade turnover with Indonesia amounted to US$3.3 billion, an increase of 40.65% compared to 2020. Russia Briefing
---------
The Disturbing Connection Between Nickel Mining and Deforestation in Indonesia
Several major companies, including US carmaker Ford, Brazil’s Vale, China’s Tsingshan, and Hong Kong’s Jardine Matheson, have invested in nickel projects in Indonesia that are causing widespread deforestation in some of the world’s most biodiverse forests. New data from environmental group Mighty Earth and its partner Brown Brothers Energy and Environment reveals that approximately 76,301 hectares of tropical forests, equivalent to the size of New York City, have been cleared within 329 nickel concessions. Around 30% of this area, or 23,000 hectares, has been deforested since 2019 due to the increased demand for electric cars and the nickel batteries required to power them. Indonesia, with its vast nickel reserves, hopes to become a major player in the global electric vehicle supply chain. However, the deforestation, along with waste, pollution, high carbon emissions, and the displacement of communities, has put pressure on both the government and mining companies to address these issues. It has also pushed carmakers to seek alternative sources of nickel, such as Australia. In March, President Joko Widodo announced that Indonesia would intensify monitoring of the sector and require companies to reforest depleted mining areas. Vigour Times
---------
PNG-Laws, land needed for industry
OIL Palm Industry Corporation (Opic) general secretary Kepson Pupita says the oil palm industry which generates about average of K2.8 billion (2022) annually in export earnings has a huge task of meeting the Government’s K20 billion target by 2027.
Pupita said this would be possible through policy change and importantly having access to customary land for development of oil palm plantations.
Pupita said this during the validation workshop of the PNG Oil Palm Policy and PNG Oil Palm Industry Authority Bill in Port Moresby on Saturday.
“Agriculture has been a number policy to address the social issues we are having in the country, and oil palm is a leading commodity in the agricultural sector has been tasked to review its legislation,” he said.
“Before the bill, we need to do the policy.
“We have conducted three regional stakeholder consultations with the smallholder and milling companies involved.
“Right now, we have 240,000 planted hectares, to bring that K20 billion by 2027 annually.
“We have to develop 1.1 million hectares.
“The 240,000 hectares is from 1968 to now.
“PNG is already a 100 per cent globally certified crude palm oil producer. Legislation and law or RSPO (roundtable on sustainable palm oil) are already accepted so we have less issue to be worried, our oil has already been certified.
“The next challenge is 1.5 million hectares is a lot, savannah land, we have five to six million hectares.
“There’s massive land but whether we have investors, it is a Government challenge, but the legislation has to go through.
“Government must support this.
“Unemployment is high in the country now and migration into urban centres is very high, this programme of oil palm will bring people back into the rural areas, back to their land.
“In oil palm, the private sector has dominated this industry, we’ve got to take the initiative and drive the reforms.”
Oil Palm Minister Francis Maneke encouraged MPs to support the growth of the industry. The National PG
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October 07. 2023
China continues its drive to dominate the Pacific region
The Chinese economy may be encountering serious difficulties, but that has not stopped Beijing from continuing its efforts to dominate southeast Asia, both politically and economically. In the past two weeks alone, Malaysia agreed to double its palm oil exports to China and also signed an infrastructure investment deal worth over $4 billion. At roughly the same time, Timor-Leste upgraded its relations with China to what the two nations called a “comprehensive strategic partnership.”
Chinese-Malaysian relations have hardly been entirely smooth, as Beijing’s so-called nine-dash line, encompassing virtually the entire South China Sea, overlaps with Malaysia’s claims relating to its states of Sabah and Sarawak. Indeed, in no small part because of friction over its competing territorial claims with China, Malaysia has developed an important military relationship with the United States. That relationship has been ongoing for some time, but it has been more discreet and less extensive than that between Washington and Singapore, Malaysia’s neighbor to its immediate south.
Nevertheless, despite their territorial dispute, China has been Malaysia’s leading trading partner for 14 consecutive years, with trade between the two countries nearly doubling from $16 billion in 2013 to over $23 billion in 2022. It is noteworthy that the palm oil deal enables Malaysia to avoid European Union restrictions that prohibit companies from selling or exporting commodities, such as palm oil, inside the EU that were grown on land deforested after 2020.
The palm oil deal promises to maintain China’s role as Kuala Lumpur’s biggest export market, thereby setting limits on just how far Malaysia can cooperate with the United States on defense-related matters. Indeed, in order to finalize its latest trade and investment agreement with Kuala Lumpur, Beijing assured Malaysian Prime Minister Anwar Ibrahim that it would continue to negotiate with Southeast Asian countries over disputed territorial claims in the South China Sea, and avoid actions that risked escalation. The Hill
---------
Indonesia Conducted its First Palm Oil Biofuel Flight on Commercial Plane
The government conducted its first flight test for bio-aviation fuel (BAF) on Wednesday using a commercial Boeing 737-800 aircraft operated by flag carrier Garuda Indonesia. The BAF used in the test was developed in cooperation with the Bandung Institute of Technology and produced at the Cilacap refinery of state-owned oil and gas giant Pertamina in Central Java. The fuel contained 2.4 percent processed palm kernel oil, which differs from regular palm oil in that it is extracted from palm seed and has a higher content of saturated fat. The Jakarta Post
---------
New agribusiness backed digital tool designed to simplify sustainability measurement and reporting
Agricultural and food production systems face increasing sustainability challenges and are under growing legislative and public pressure. A new digital platform – TRACT – has been launched to boost transparency in feed and food supply chains - from growers to retailers. FEED Navigator
China continues its drive to dominate the Pacific region
The Chinese economy may be encountering serious difficulties, but that has not stopped Beijing from continuing its efforts to dominate southeast Asia, both politically and economically. In the past two weeks alone, Malaysia agreed to double its palm oil exports to China and also signed an infrastructure investment deal worth over $4 billion. At roughly the same time, Timor-Leste upgraded its relations with China to what the two nations called a “comprehensive strategic partnership.”
Chinese-Malaysian relations have hardly been entirely smooth, as Beijing’s so-called nine-dash line, encompassing virtually the entire South China Sea, overlaps with Malaysia’s claims relating to its states of Sabah and Sarawak. Indeed, in no small part because of friction over its competing territorial claims with China, Malaysia has developed an important military relationship with the United States. That relationship has been ongoing for some time, but it has been more discreet and less extensive than that between Washington and Singapore, Malaysia’s neighbor to its immediate south.
Nevertheless, despite their territorial dispute, China has been Malaysia’s leading trading partner for 14 consecutive years, with trade between the two countries nearly doubling from $16 billion in 2013 to over $23 billion in 2022. It is noteworthy that the palm oil deal enables Malaysia to avoid European Union restrictions that prohibit companies from selling or exporting commodities, such as palm oil, inside the EU that were grown on land deforested after 2020.
The palm oil deal promises to maintain China’s role as Kuala Lumpur’s biggest export market, thereby setting limits on just how far Malaysia can cooperate with the United States on defense-related matters. Indeed, in order to finalize its latest trade and investment agreement with Kuala Lumpur, Beijing assured Malaysian Prime Minister Anwar Ibrahim that it would continue to negotiate with Southeast Asian countries over disputed territorial claims in the South China Sea, and avoid actions that risked escalation. The Hill
---------
Indonesia Conducted its First Palm Oil Biofuel Flight on Commercial Plane
The government conducted its first flight test for bio-aviation fuel (BAF) on Wednesday using a commercial Boeing 737-800 aircraft operated by flag carrier Garuda Indonesia. The BAF used in the test was developed in cooperation with the Bandung Institute of Technology and produced at the Cilacap refinery of state-owned oil and gas giant Pertamina in Central Java. The fuel contained 2.4 percent processed palm kernel oil, which differs from regular palm oil in that it is extracted from palm seed and has a higher content of saturated fat. The Jakarta Post
---------
New agribusiness backed digital tool designed to simplify sustainability measurement and reporting
Agricultural and food production systems face increasing sustainability challenges and are under growing legislative and public pressure. A new digital platform – TRACT – has been launched to boost transparency in feed and food supply chains - from growers to retailers. FEED Navigator
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|
October 06, 2023
UK retailers urge ministers to align with EU on new ‘deforestation-free’ rules
Leading supermarkets call on government to speed up legislation or put exports at risk
Supermarkets have warned the UK government that efforts to rid their supply chains of products linked to deforestation will be derailed unless it aligns with new EU rules due to take effect at the end of 2024.
In a letter seen by the Financial Times, retailers including Tesco and Marks and Spencer on Thursday urged environment secretary Thérèse Coffey to speed up legislation that will force companies to ensure their direct and indirect suppliers have “deforestation-free supply chains”.
The supermarkets, which also included Asda, Lidl and Wm Morrison, said they had 15 months to meet Brussels’ new regulations aimed at curbing the destruction of the world’s forests or risk their ability to export British-made produce to Europe.
From the end of next year, EU countries will refuse imports of goods linked to deforestation, including soya, cocoa, coffee, palm oil and wood. Under the same new rules, companies operating in the bloc will be legally obliged to prove that their goods have not been produced on land that has been deforested since 2020.
Under the 2021 Environment Act, the post-Brexit legal basis for environmental protection, the UK government pledged to ban the use of commodities linked to “illegal deforestation” as defined by producer countries.
However, the secondary legislation that would compel companies to comply has yet to be introduced.
“Our British supply chains remain uniquely exposed because of the lack of a legislative process in the UK,” the supermarkets wrote, adding that contributors of raw materials to their supply chains were “unwilling to provide the necessary transparency” without a legal requirement.
The retailers called for the swift implementation of the legislation, “to remove the remaining barriers to transparency and to level the playing field throughout the sector”, warning that further delay could hit exports. Financial Times
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Make biodiversity reporting, assessments mandatory: Wilmar
Plantation owners, both big and small, say data collection and reporting obligations can be onerous. Others say voluntary disclosure schemes will not help to shift money towards conservation fast enough.
Voluntary reporting on biodiversity impacts and risks will not work in Asia and governments should set stronger harmonised rules to better protect nature, said a conservation executive from one of Asia’s largest agribusiness groups, Wilmar International.
Chin Sing Yun, Wilmar’s conservation programme leader, urged policymakers to make “high conservation value” (HCV) and “high carbon stock” (HCS) assessments compulsory for all new developments.
These are policies Wilmar already internally abide by, in its “no deforestation, no peat, no exploitation” pledge made in 2013, after facing allegations of causing severe transboundary haze.
HCV studies typically look into how areas of high or rare biodiversity within development plots can be better protected, while HCS assessments seek to identify natural forest areas against degraded land.
These assessments should also be part of financing considerations, said Chin, who oversees nature protection efforts at one of the world’s biggest oil palm plantation owners. She was speaking at a corporate sustainability conference in Bangkok, Thailand on Wednesday. Eco Business
UK retailers urge ministers to align with EU on new ‘deforestation-free’ rules
Leading supermarkets call on government to speed up legislation or put exports at risk
Supermarkets have warned the UK government that efforts to rid their supply chains of products linked to deforestation will be derailed unless it aligns with new EU rules due to take effect at the end of 2024.
In a letter seen by the Financial Times, retailers including Tesco and Marks and Spencer on Thursday urged environment secretary Thérèse Coffey to speed up legislation that will force companies to ensure their direct and indirect suppliers have “deforestation-free supply chains”.
The supermarkets, which also included Asda, Lidl and Wm Morrison, said they had 15 months to meet Brussels’ new regulations aimed at curbing the destruction of the world’s forests or risk their ability to export British-made produce to Europe.
From the end of next year, EU countries will refuse imports of goods linked to deforestation, including soya, cocoa, coffee, palm oil and wood. Under the same new rules, companies operating in the bloc will be legally obliged to prove that their goods have not been produced on land that has been deforested since 2020.
Under the 2021 Environment Act, the post-Brexit legal basis for environmental protection, the UK government pledged to ban the use of commodities linked to “illegal deforestation” as defined by producer countries.
However, the secondary legislation that would compel companies to comply has yet to be introduced.
“Our British supply chains remain uniquely exposed because of the lack of a legislative process in the UK,” the supermarkets wrote, adding that contributors of raw materials to their supply chains were “unwilling to provide the necessary transparency” without a legal requirement.
The retailers called for the swift implementation of the legislation, “to remove the remaining barriers to transparency and to level the playing field throughout the sector”, warning that further delay could hit exports. Financial Times
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Make biodiversity reporting, assessments mandatory: Wilmar
Plantation owners, both big and small, say data collection and reporting obligations can be onerous. Others say voluntary disclosure schemes will not help to shift money towards conservation fast enough.
Voluntary reporting on biodiversity impacts and risks will not work in Asia and governments should set stronger harmonised rules to better protect nature, said a conservation executive from one of Asia’s largest agribusiness groups, Wilmar International.
Chin Sing Yun, Wilmar’s conservation programme leader, urged policymakers to make “high conservation value” (HCV) and “high carbon stock” (HCS) assessments compulsory for all new developments.
These are policies Wilmar already internally abide by, in its “no deforestation, no peat, no exploitation” pledge made in 2013, after facing allegations of causing severe transboundary haze.
HCV studies typically look into how areas of high or rare biodiversity within development plots can be better protected, while HCS assessments seek to identify natural forest areas against degraded land.
These assessments should also be part of financing considerations, said Chin, who oversees nature protection efforts at one of the world’s biggest oil palm plantation owners. She was speaking at a corporate sustainability conference in Bangkok, Thailand on Wednesday. Eco Business
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October 05, 2023
What Is the Carbon Footprint of Colombian Palm Oil?
In the first study on the palm oil carbon footprint, 27 mills and 11 plantations in the country were included and the national production of palm oil in 2017 was close to 70%. In this new study, it was possible to increase the number of mills to 45 and the plantations, which represented about 85% of the national oil production in 2021. There are 74 active mills in Colombia.
Colombia is the fourth largest palm oil producer in the world and the first in the Americas, hence the carbon footprint is an important subject. In 2022, production was 1.3 million tons and projections for the end of this year are 1.8 million tons. There are 580 thousand hectares of oil palm planted in the country and the crop is the second largest planted area in the country, after coffee.
One of the challenges of this agroindustry is to achieve sustainable productivity, to which producers, businessmen, Fedepalma, and its research center Cenipalma are committed.
The carbon footprint is the estimate of emissions generated by soil use, chemical fertilization, fossil fuel use, emissions generated by agrochemicals, and energy use” said Nidia Elizabet Ramirez, leader of the Biorefinery and Sustainability Area of Cenipalma. Born2Invest
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How soybean oil cost impacts biofuel production and profit margins
According to the Food and Agriculture Organization (FAO), about 70 percent of biodiesel in the world is produced from vegetable oils, with soybean oil being the second most widely used vegetable oil in the biodiesel industry.
The feedstock mix of a country’s biofuel industry depends on the dynamics between two main factors: domestic supply and national policies. Therefore, the feedstock mix of major global biodiesel producers varies according to local market conditions.
In the US and Brazil, which produce around 30 percent of the world’s biodiesel, soybean oil is the most used feedstock. In Europe, it is rapeseed oil, and in Southeastern Asia, palm oil is the primary feedstock.
Feedstock costs make up more than 85 percent of biodiesel operating costs, underscoring the importance of understanding the dynamics of the vegetable oil market to navigate the biomass-based diesel industry. The hike in soybean oil price from early June to late July led to negative margins in the Fastmarkets assessment of biodiesel and renewable diesel profitability in the US, with a more severe impact on the biodiesel industry that only managed to recover positive profits because of soaring energy prices that offset some of the high production costs.
Soybean oil pricing trends – what is driving volatility Fast Markets
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Malaysian palm oil's key role in global food security
PALM oil, known for its versatility, serves as a widely consumed vegetable oil worldwide, is an important ingredient in the food industry. It is mainly used as a cooking oil and also in various food applications, including margarines, spreads, confectionary fats, ice cream, pizza, doughnuts, chocolate, and emulsifiers.
The world's population is growing and the United Nations estimates it to reach 8.0 billion in 2022, 8.5 billion in 2030, 9.7 billion in 2050 and 10.4 billion in 2100.
Hundreds of million people do not have enough food to eat, with the vast majority of them living in developing countries.
Developing countries including Malaysia are facing the growing threat of increasing food insecurity. Malaysia scored moderately for hunger in the 2022 Global Hunger Index, recording 12.5 in 2022 from 10.9 in 2014, likely corresponding to a rise in food insecurity because of the Covid-19 pandemic.
According to the Food and Agriculture Organization of the United Nations (FAO), food security is achieved when every individual, at any given moment, possesses the physical and economic means to acquire an ample supply of safe, nutritious food that aligns with their dietary requirements and preferences, enabling a healthy and active lifestyle.
There are four main dimensions of food security, namely availability, access, utilisation, and stability.
Palm oil has been playing a key role in addressing global food security. Palm oil is one of the edible oils recognised by the FAO and the World Health Organization (WHO). It is a versatile ingredient used in a wide range of products including cooking oil, margarine, baked goods, snacks and processed foods. Its versatility contributes to the diversity of food options to consumers. New Straits Times
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An indepth look at the Malaysian palm oil industry, from the perspective of the Malaysian Palm Oil Association
From the MPOA National Palm Oil Conference 2023
Download full presentation
What Is the Carbon Footprint of Colombian Palm Oil?
In the first study on the palm oil carbon footprint, 27 mills and 11 plantations in the country were included and the national production of palm oil in 2017 was close to 70%. In this new study, it was possible to increase the number of mills to 45 and the plantations, which represented about 85% of the national oil production in 2021. There are 74 active mills in Colombia.
Colombia is the fourth largest palm oil producer in the world and the first in the Americas, hence the carbon footprint is an important subject. In 2022, production was 1.3 million tons and projections for the end of this year are 1.8 million tons. There are 580 thousand hectares of oil palm planted in the country and the crop is the second largest planted area in the country, after coffee.
One of the challenges of this agroindustry is to achieve sustainable productivity, to which producers, businessmen, Fedepalma, and its research center Cenipalma are committed.
The carbon footprint is the estimate of emissions generated by soil use, chemical fertilization, fossil fuel use, emissions generated by agrochemicals, and energy use” said Nidia Elizabet Ramirez, leader of the Biorefinery and Sustainability Area of Cenipalma. Born2Invest
---------
How soybean oil cost impacts biofuel production and profit margins
According to the Food and Agriculture Organization (FAO), about 70 percent of biodiesel in the world is produced from vegetable oils, with soybean oil being the second most widely used vegetable oil in the biodiesel industry.
The feedstock mix of a country’s biofuel industry depends on the dynamics between two main factors: domestic supply and national policies. Therefore, the feedstock mix of major global biodiesel producers varies according to local market conditions.
In the US and Brazil, which produce around 30 percent of the world’s biodiesel, soybean oil is the most used feedstock. In Europe, it is rapeseed oil, and in Southeastern Asia, palm oil is the primary feedstock.
Feedstock costs make up more than 85 percent of biodiesel operating costs, underscoring the importance of understanding the dynamics of the vegetable oil market to navigate the biomass-based diesel industry. The hike in soybean oil price from early June to late July led to negative margins in the Fastmarkets assessment of biodiesel and renewable diesel profitability in the US, with a more severe impact on the biodiesel industry that only managed to recover positive profits because of soaring energy prices that offset some of the high production costs.
Soybean oil pricing trends – what is driving volatility Fast Markets
---------
Malaysian palm oil's key role in global food security
PALM oil, known for its versatility, serves as a widely consumed vegetable oil worldwide, is an important ingredient in the food industry. It is mainly used as a cooking oil and also in various food applications, including margarines, spreads, confectionary fats, ice cream, pizza, doughnuts, chocolate, and emulsifiers.
The world's population is growing and the United Nations estimates it to reach 8.0 billion in 2022, 8.5 billion in 2030, 9.7 billion in 2050 and 10.4 billion in 2100.
Hundreds of million people do not have enough food to eat, with the vast majority of them living in developing countries.
Developing countries including Malaysia are facing the growing threat of increasing food insecurity. Malaysia scored moderately for hunger in the 2022 Global Hunger Index, recording 12.5 in 2022 from 10.9 in 2014, likely corresponding to a rise in food insecurity because of the Covid-19 pandemic.
According to the Food and Agriculture Organization of the United Nations (FAO), food security is achieved when every individual, at any given moment, possesses the physical and economic means to acquire an ample supply of safe, nutritious food that aligns with their dietary requirements and preferences, enabling a healthy and active lifestyle.
There are four main dimensions of food security, namely availability, access, utilisation, and stability.
Palm oil has been playing a key role in addressing global food security. Palm oil is one of the edible oils recognised by the FAO and the World Health Organization (WHO). It is a versatile ingredient used in a wide range of products including cooking oil, margarine, baked goods, snacks and processed foods. Its versatility contributes to the diversity of food options to consumers. New Straits Times
---------
An indepth look at the Malaysian palm oil industry, from the perspective of the Malaysian Palm Oil Association
From the MPOA National Palm Oil Conference 2023
Download full presentation
MPOB: EFFORTS BEING MADE TO HELP MORE PALM OIL SMALLHOLDERS MEET MSPO REQUIREMENTS
KUALA LUMPUR, Oct 5 (Bernama) -- The Ministry of Plantations and Commodities and the Malaysian Palm Oil Board (MPOB) are intensifying efforts to enable more palm oil smallholders to comply with the Malaysian Sustainable Palm Oil Certification (MSPO) scheme.
MPOB director general Datuk Dr Ahmad Parveez Ghulam Kadir said the implementation of the MSPO since 2015 throughout the Malaysian oil palm industry chain has indirectly proved that the oil palm industry is able to grow rapidly without having to sacrifice forests which are a unique biodiversity habitat in our country.
He also said that this industry has contributed largely to the preservation and conservation of flora and fauna in the country.
“If all MSPO principles and good agricultural practices are followed by oil palm growers in this country, then there is no reason and strong evidence to link Malaysian oil palm plantations to damaging the environment,” Ahmad Parveez said in his keynote speech at the MSPO smallholder empowering programme in Pelangai, Bentong, Pahang, today.
He explained that, previously, the European Union and other vegetable oil-producing countries seemed to challenge the palm oil-producing countries in terms of environmental sustainability.
“The international community is now increasingly aware that palm oil production in Malaysia is carried out sustainably by creating a symbiotic relationship between environmental conservation and economic prosperity,” Ahmad Parveez added. Bernama
KUALA LUMPUR, Oct 5 (Bernama) -- The Ministry of Plantations and Commodities and the Malaysian Palm Oil Board (MPOB) are intensifying efforts to enable more palm oil smallholders to comply with the Malaysian Sustainable Palm Oil Certification (MSPO) scheme.
MPOB director general Datuk Dr Ahmad Parveez Ghulam Kadir said the implementation of the MSPO since 2015 throughout the Malaysian oil palm industry chain has indirectly proved that the oil palm industry is able to grow rapidly without having to sacrifice forests which are a unique biodiversity habitat in our country.
He also said that this industry has contributed largely to the preservation and conservation of flora and fauna in the country.
“If all MSPO principles and good agricultural practices are followed by oil palm growers in this country, then there is no reason and strong evidence to link Malaysian oil palm plantations to damaging the environment,” Ahmad Parveez said in his keynote speech at the MSPO smallholder empowering programme in Pelangai, Bentong, Pahang, today.
He explained that, previously, the European Union and other vegetable oil-producing countries seemed to challenge the palm oil-producing countries in terms of environmental sustainability.
“The international community is now increasingly aware that palm oil production in Malaysia is carried out sustainably by creating a symbiotic relationship between environmental conservation and economic prosperity,” Ahmad Parveez added. Bernama
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October 04, 2023
World's biggest palm oil exchange sets sights on soyoil futures
MUMBAI, Oct 3 (Reuters) - Bursa Malaysia Derivatives Exchange (BMD), known for offering the most liquid crude palm oil futures in the world, is planning to launch soyoil futures in the first quarter of the next year, a senior exchange official said.
The exchange has been working on finalising the contract specifications, which will be completed this year before the contract's launch in early 2024, said Mohd Saleem, director, derivatives market at Bursa Malaysia .
"There's a lot of trading between palm oil and soybean oil. This will probably synergise a lot more hedging under one roof," he said.
Currently, Chicago Mercantile Exchange (CME Group) CME.O, which merged with the Chicago Board of Trade (CBOT), offers the most liquid soyoil futures contract that is used by the industry as a benchmark.
Price movements in palm oil, soyoil, sunflower oil and rapeseed oil depend on the price trends of other competing edible oils.
Currently, traders and refiners hedge their risk in various edible oils on different exchange platforms.
The BMD would first launch soyoil contract and later could launch contracts for other edible oils such as sunflower oil, he said. Nasdaq/ Reuters
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Global UCO supply to double by 2030 as US, EU policies drive Asian supply
Global supplies of used cooking oil is expected to more than double to 31 million mt by 2030, from the current 14 million mt, market participants said over September, a development driven by rapidly growing Asian supply geared towards cashing in on US and EU incentives for biofuels made from agricultural waste and non-agricultural feedstocks.
In the EU, biodiesel made from UCO, also known as used cooking oil methyl ester, or UCOME, is counted twice towards emissions savings targets, while the US' Inflation Reduction Act also supports tax credits for clean fuels and Sustainable Aviation Fuel.
SAF made from UCO achieves a 45%-90% reduction in carbon intensity, a popular metric used to measure reduction in carbon emissions, according to an SAF Market Outlook report by S&P Global Commodity Insights in August.
UCO-derived biodiesel has a significantly lower carbon footprint with a carbon intensity score of 21.7 gCO2/MJ, much lower than biodiesel derived from first generation conventional vegetable oil feedstock such as rapeseed, soybean, and palm, according to a working paper by the International Council on Clean Transportation released in February.
UCO importsfrom the EUis estimated to rise to 3.7 million mt in 2030, according to trade estimates, as the bloc ramps up its decarbonization targets under its Renewable Energy Directives policy from its second phase known as RED II to RED III in 2023.
With an increased collection of UCO, China is likely to become the largest supplier of the feedstock to western destinations, experts said. SP Global
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Development of palm biodiesel industry can spur demand for CPO
PUTRAJAYA: The growth of the palm biodiesel industry will stimulate local demand for crude palm oil (CPO) and empower it to set prices rather than follow market trends, says Deputy Prime Minister and Minister of Plantation and Commodities Datuk Seri Fadillah Yusof.
Fadillah said the national biodiesel blending programme started in 2010 with 5% palm methyl ester (B5) and gradually rose to 20% by 2020. The implementation of the B30 programme in the country is expected to take place by 2025.
“Our current B10 implementation in the transport sector is just the beginning, as we envision moving towards nationwide B20 implementation, which will significantly increase CPO consumption to over one million tonnes per annum.
“We are also exploring the expansion of B10 usage in the industrial sector,” he said during his keynote address at the fourth Palm Biodiesel Conference.
Nevertheless, Malaysian Biodiesel Association president UR Unnithan said the palm biodiesel industry still continues to face headwinds with palm oil delegated regulations from the European Union (EU).
He urged all the stakeholders to work on a global consensus to prove that the commodity will not cause deforestation and is truly a sustainable source.
“The EU Renewable Energy Directive (RED) III and the United States Environmental Protection Agency guidelines still singles out palm biodiesel as the non-sustainable source for production. The StarMY
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Indian Government aims to triple palm oil production by 2030
He said that in FY25, the country is expected to add 0.1 MH of additional plantation.
The government is aiming to increase domestic palm oil production from current level of 0.35 million tonne (MT) to a MT by 2030 under the national oil palm mission through adding at least 0.1 million hectare (MH) of new plantation annually in the five to six years, according to a leading industry official.
“While in FY23, 42,000 hectare of new palm plantation was added while in the current fiscal atleast 70,000 hectare of plantation is likely to be added,” Sougata Niyogi, head, Godrej Agrovet, palm oil division, which owns a third of total palm plantation in the country told FE. He said that in FY25, the country is expected to add 0.1 MH of additional plantation.
An agriculture ministry official said the plan is to increase total area under palm by several companies including Godrej Agrovet, Patanjali Food and 3F oil palm agrotech industries to 0.65 MH in the next 5 – 6 years from current level of 0.3 MH. Financial Express
World's biggest palm oil exchange sets sights on soyoil futures
MUMBAI, Oct 3 (Reuters) - Bursa Malaysia Derivatives Exchange (BMD), known for offering the most liquid crude palm oil futures in the world, is planning to launch soyoil futures in the first quarter of the next year, a senior exchange official said.
The exchange has been working on finalising the contract specifications, which will be completed this year before the contract's launch in early 2024, said Mohd Saleem, director, derivatives market at Bursa Malaysia .
"There's a lot of trading between palm oil and soybean oil. This will probably synergise a lot more hedging under one roof," he said.
Currently, Chicago Mercantile Exchange (CME Group) CME.O, which merged with the Chicago Board of Trade (CBOT), offers the most liquid soyoil futures contract that is used by the industry as a benchmark.
Price movements in palm oil, soyoil, sunflower oil and rapeseed oil depend on the price trends of other competing edible oils.
Currently, traders and refiners hedge their risk in various edible oils on different exchange platforms.
The BMD would first launch soyoil contract and later could launch contracts for other edible oils such as sunflower oil, he said. Nasdaq/ Reuters
---------
Global UCO supply to double by 2030 as US, EU policies drive Asian supply
Global supplies of used cooking oil is expected to more than double to 31 million mt by 2030, from the current 14 million mt, market participants said over September, a development driven by rapidly growing Asian supply geared towards cashing in on US and EU incentives for biofuels made from agricultural waste and non-agricultural feedstocks.
In the EU, biodiesel made from UCO, also known as used cooking oil methyl ester, or UCOME, is counted twice towards emissions savings targets, while the US' Inflation Reduction Act also supports tax credits for clean fuels and Sustainable Aviation Fuel.
SAF made from UCO achieves a 45%-90% reduction in carbon intensity, a popular metric used to measure reduction in carbon emissions, according to an SAF Market Outlook report by S&P Global Commodity Insights in August.
UCO-derived biodiesel has a significantly lower carbon footprint with a carbon intensity score of 21.7 gCO2/MJ, much lower than biodiesel derived from first generation conventional vegetable oil feedstock such as rapeseed, soybean, and palm, according to a working paper by the International Council on Clean Transportation released in February.
UCO importsfrom the EUis estimated to rise to 3.7 million mt in 2030, according to trade estimates, as the bloc ramps up its decarbonization targets under its Renewable Energy Directives policy from its second phase known as RED II to RED III in 2023.
With an increased collection of UCO, China is likely to become the largest supplier of the feedstock to western destinations, experts said. SP Global
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Development of palm biodiesel industry can spur demand for CPO
PUTRAJAYA: The growth of the palm biodiesel industry will stimulate local demand for crude palm oil (CPO) and empower it to set prices rather than follow market trends, says Deputy Prime Minister and Minister of Plantation and Commodities Datuk Seri Fadillah Yusof.
Fadillah said the national biodiesel blending programme started in 2010 with 5% palm methyl ester (B5) and gradually rose to 20% by 2020. The implementation of the B30 programme in the country is expected to take place by 2025.
“Our current B10 implementation in the transport sector is just the beginning, as we envision moving towards nationwide B20 implementation, which will significantly increase CPO consumption to over one million tonnes per annum.
“We are also exploring the expansion of B10 usage in the industrial sector,” he said during his keynote address at the fourth Palm Biodiesel Conference.
Nevertheless, Malaysian Biodiesel Association president UR Unnithan said the palm biodiesel industry still continues to face headwinds with palm oil delegated regulations from the European Union (EU).
He urged all the stakeholders to work on a global consensus to prove that the commodity will not cause deforestation and is truly a sustainable source.
“The EU Renewable Energy Directive (RED) III and the United States Environmental Protection Agency guidelines still singles out palm biodiesel as the non-sustainable source for production. The StarMY
---------
Indian Government aims to triple palm oil production by 2030
He said that in FY25, the country is expected to add 0.1 MH of additional plantation.
The government is aiming to increase domestic palm oil production from current level of 0.35 million tonne (MT) to a MT by 2030 under the national oil palm mission through adding at least 0.1 million hectare (MH) of new plantation annually in the five to six years, according to a leading industry official.
“While in FY23, 42,000 hectare of new palm plantation was added while in the current fiscal atleast 70,000 hectare of plantation is likely to be added,” Sougata Niyogi, head, Godrej Agrovet, palm oil division, which owns a third of total palm plantation in the country told FE. He said that in FY25, the country is expected to add 0.1 MH of additional plantation.
An agriculture ministry official said the plan is to increase total area under palm by several companies including Godrej Agrovet, Patanjali Food and 3F oil palm agrotech industries to 0.65 MH in the next 5 – 6 years from current level of 0.3 MH. Financial Express
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October 03, 2023
Towards an equitable EU–ASEAN green deal
3 October 2023
Authors: Brasukra G Sudjana, Vriens and Partners and Cazadira F Tamzil, Pijar Foundation
The European Green Deal has caused concerns among emerging markets, especially ASEAN member states. The Green Deal is an array of initiatives and regulations aimed at meeting the European Union’s pledge to achieve ‘climate neutrality by 2050’.
Two major instruments are causing consternation among developing countries. The first is the European Union Deforestation-Free Regulation (EUDR), requiring all EU import and export commodities to be traceable as ‘deforestation-free’. The second is the European Union Carbon Border Adjustment Mechanism (CBAM), which imposes duties on products imported from countries without a carbon pricing mechanism or with carbon prices below the European Union Emissions Trading System. While the European Union maintains that the Green Deal is an environmental effort rather than a trade protection measure, it will still have adverse effects on ASEAN economies.
The impact of ongoing diplomatic negotiations is likely to be limited. On 29 June 2023, the European Union agreed to establish a Joint Task Force with Indonesia and Malaysia to discuss the EUDR — the same day it entered into force. With the CBAM expected to enter into force on 1 October 2023, there are questions about the impact on free trade agreement negotiations between the European Union and ASEAN member states, namely Indonesia and the Philippines.
ASEAN and EU decision makers must chart a path towards an equitable, business-centric resolution. The European Union should increase financial and technical support for a carbon-neutral economy, while ASEAN countries should enhance their regulatory frameworks to optimise the benefits of such an economic model.
The EUDR will initially cover seven commodities — palm oil, soy, wood, cattle, cocoa, rubber and coffee — and several derived products. Its extensive due diligence and tracking-and-tracing requirements will impose large compliance costs on Southeast Asian farmers, as producers must submit certificates reporting greenhouse gas emissions during production. The European Union also plans to establish a monitoring system, involving audits of goods-producing countries. These strict rules may further exclude smallholders from the export market and reduce their incomes.
Meanwhile, the CBAM will apply duties on certain products — including iron and steel — imported from countries without carbon pricing mechanisms or with carbon prices below the Emissions Trading System. This will apply to Indonesia and Malaysia’s iron and steel exports to the European Union. The impacts may even grow as the European Union is set to extend the sectors covered. East Asia Forum
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Malaysia's plantations ministry proposes cut in windfall tax on palm industry
KUALA LUMPUR : Malaysia's plantations and commodities ministry has proposed a cut in windfall levy for palm oil producers in the states of Sabah and Sarawak to 1.5 per cent from 3 per cent, state news agency Bernama reported on Tuesday, citing Minister Fadillah Yusof.
The proposal has been made to the finance ministry, the minister said, according to Bernama. Sabah and Sarawak are the largest palm oil producing states in the country. Channel News Asia
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Malaysian Minister for Plantation and Commodities seeks federal funding to support replanting
KUALA LUMPUR: The Plantation and Commodities Ministry has submitted bids for financial resources to support replanting activities, especially those by smallholders in the oil palm industry, said its minister Datuk Seri Fadillah Yusof (pix).
Fadillah, who is also Deputy Prime Minister, said they are now pending approval from the Finance Ministry. The Sun Daily
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Malaysia mulls expansion of B10 biodiesel usage to industrial sector
KUALA LUMPUR, Oct 3 (Reuters) - Malaysia is considering expansion of its B10 biodiesel programme, which requires the mandatory use of 10% palm oil, to the industrial sector, its plantations and commodities minister said on Tuesday.
Malaysia, the world's second biggest producer of palm oil, currently implements the B10 programme only for the transportation sector.
Minister Fadillah Yusof did not say when a decision on the B10 mandate for industrial use would be finalised. Reuters
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Cargill partners with Solidaridad for major multinational palm oil and soy farmer support venture
Cargill has joined with civil society group Solidaridad for a joint $4.6 million initiative across five countries to improve palm oil and soy farmer livelihoods, increase climate-friendly farming practices, and improve land conservation, writes Neill Barston.
According to the US-headquartered business, which is set to play a key role in our World Confectionery Conference this week on 5 October, the three-year project is anticipated to deliver an elevated benchmark for collaboration across the two organisations, reaching around 3,400 farmers in Latin America and Asia.
The work for the palm and soy sectors, follows Cargill’s ongoing programmes across the agricultural sector, including its Cocoa Promise programme designed to offer support for farmers within the cocoa farming sector, which continues to face significant challenges with deforestation and child labour, which the wider sector is continuing to address. As industry observers have noted, the upcoming introduction of EU supply chain legislation is anticipated to have a strong positive impact on supply chains within the industry, with legal frameworks set to replace existing voluntary schemes that have lacked common enforceable standards for the cocoa and chocolate sector. Confectionery Production
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EU Deforestation Regulation must address Africa’s needs, too
By Abraham Baffoe, Africa and Global Director, Proforest
For too long, the West has fallen short — regulation has been seen by many here in Africa as instruction rather than collaboration, and there are reasonable concerns that the EU Deforestation Regulation will follow suit, Abraham Baffoe writes.
In early September, African heads of state and leading organisations met in Nairobi to discuss the challenges and opportunities for the continent and to raise their all too familiar concerns about top-down approaches from the West.
Shortly after, 17 countries from the Global South expressed their dissatisfaction with EU regulators as they look to implement the European Deforestation Regulation (EUDR).
These nations criticised the lack of consideration for people on the ground and highlighted the absence of support for businesses in producer countries.
They are not alone. My colleagues across the African continent have for decades raised their concerns that environmental policy has been directed by those who are the biggest contributors to climate change while also the least affected by it.
Regulation as instruction, not collaboration
In a shift away from focusing on loss and damage and the risks facing the continent, Kenyan President William Ruto stated at Africa Climate Week that “we’re not here to catalogue grievances”.
But we do need to acknowledge that the burden of the sustainable food transition is all too often placed solely on producer countries, which are often developing nations, despite demand being driven by wealthy consumer blocs such as the EU. EuroNews
Towards an equitable EU–ASEAN green deal
3 October 2023
Authors: Brasukra G Sudjana, Vriens and Partners and Cazadira F Tamzil, Pijar Foundation
The European Green Deal has caused concerns among emerging markets, especially ASEAN member states. The Green Deal is an array of initiatives and regulations aimed at meeting the European Union’s pledge to achieve ‘climate neutrality by 2050’.
Two major instruments are causing consternation among developing countries. The first is the European Union Deforestation-Free Regulation (EUDR), requiring all EU import and export commodities to be traceable as ‘deforestation-free’. The second is the European Union Carbon Border Adjustment Mechanism (CBAM), which imposes duties on products imported from countries without a carbon pricing mechanism or with carbon prices below the European Union Emissions Trading System. While the European Union maintains that the Green Deal is an environmental effort rather than a trade protection measure, it will still have adverse effects on ASEAN economies.
The impact of ongoing diplomatic negotiations is likely to be limited. On 29 June 2023, the European Union agreed to establish a Joint Task Force with Indonesia and Malaysia to discuss the EUDR — the same day it entered into force. With the CBAM expected to enter into force on 1 October 2023, there are questions about the impact on free trade agreement negotiations between the European Union and ASEAN member states, namely Indonesia and the Philippines.
ASEAN and EU decision makers must chart a path towards an equitable, business-centric resolution. The European Union should increase financial and technical support for a carbon-neutral economy, while ASEAN countries should enhance their regulatory frameworks to optimise the benefits of such an economic model.
The EUDR will initially cover seven commodities — palm oil, soy, wood, cattle, cocoa, rubber and coffee — and several derived products. Its extensive due diligence and tracking-and-tracing requirements will impose large compliance costs on Southeast Asian farmers, as producers must submit certificates reporting greenhouse gas emissions during production. The European Union also plans to establish a monitoring system, involving audits of goods-producing countries. These strict rules may further exclude smallholders from the export market and reduce their incomes.
Meanwhile, the CBAM will apply duties on certain products — including iron and steel — imported from countries without carbon pricing mechanisms or with carbon prices below the Emissions Trading System. This will apply to Indonesia and Malaysia’s iron and steel exports to the European Union. The impacts may even grow as the European Union is set to extend the sectors covered. East Asia Forum
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Malaysia's plantations ministry proposes cut in windfall tax on palm industry
KUALA LUMPUR : Malaysia's plantations and commodities ministry has proposed a cut in windfall levy for palm oil producers in the states of Sabah and Sarawak to 1.5 per cent from 3 per cent, state news agency Bernama reported on Tuesday, citing Minister Fadillah Yusof.
The proposal has been made to the finance ministry, the minister said, according to Bernama. Sabah and Sarawak are the largest palm oil producing states in the country. Channel News Asia
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Malaysian Minister for Plantation and Commodities seeks federal funding to support replanting
KUALA LUMPUR: The Plantation and Commodities Ministry has submitted bids for financial resources to support replanting activities, especially those by smallholders in the oil palm industry, said its minister Datuk Seri Fadillah Yusof (pix).
Fadillah, who is also Deputy Prime Minister, said they are now pending approval from the Finance Ministry. The Sun Daily
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Malaysia mulls expansion of B10 biodiesel usage to industrial sector
KUALA LUMPUR, Oct 3 (Reuters) - Malaysia is considering expansion of its B10 biodiesel programme, which requires the mandatory use of 10% palm oil, to the industrial sector, its plantations and commodities minister said on Tuesday.
Malaysia, the world's second biggest producer of palm oil, currently implements the B10 programme only for the transportation sector.
Minister Fadillah Yusof did not say when a decision on the B10 mandate for industrial use would be finalised. Reuters
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Cargill partners with Solidaridad for major multinational palm oil and soy farmer support venture
Cargill has joined with civil society group Solidaridad for a joint $4.6 million initiative across five countries to improve palm oil and soy farmer livelihoods, increase climate-friendly farming practices, and improve land conservation, writes Neill Barston.
According to the US-headquartered business, which is set to play a key role in our World Confectionery Conference this week on 5 October, the three-year project is anticipated to deliver an elevated benchmark for collaboration across the two organisations, reaching around 3,400 farmers in Latin America and Asia.
The work for the palm and soy sectors, follows Cargill’s ongoing programmes across the agricultural sector, including its Cocoa Promise programme designed to offer support for farmers within the cocoa farming sector, which continues to face significant challenges with deforestation and child labour, which the wider sector is continuing to address. As industry observers have noted, the upcoming introduction of EU supply chain legislation is anticipated to have a strong positive impact on supply chains within the industry, with legal frameworks set to replace existing voluntary schemes that have lacked common enforceable standards for the cocoa and chocolate sector. Confectionery Production
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EU Deforestation Regulation must address Africa’s needs, too
By Abraham Baffoe, Africa and Global Director, Proforest
For too long, the West has fallen short — regulation has been seen by many here in Africa as instruction rather than collaboration, and there are reasonable concerns that the EU Deforestation Regulation will follow suit, Abraham Baffoe writes.
In early September, African heads of state and leading organisations met in Nairobi to discuss the challenges and opportunities for the continent and to raise their all too familiar concerns about top-down approaches from the West.
Shortly after, 17 countries from the Global South expressed their dissatisfaction with EU regulators as they look to implement the European Deforestation Regulation (EUDR).
These nations criticised the lack of consideration for people on the ground and highlighted the absence of support for businesses in producer countries.
They are not alone. My colleagues across the African continent have for decades raised their concerns that environmental policy has been directed by those who are the biggest contributors to climate change while also the least affected by it.
Regulation as instruction, not collaboration
In a shift away from focusing on loss and damage and the risks facing the continent, Kenyan President William Ruto stated at Africa Climate Week that “we’re not here to catalogue grievances”.
But we do need to acknowledge that the burden of the sustainable food transition is all too often placed solely on producer countries, which are often developing nations, despite demand being driven by wealthy consumer blocs such as the EU. EuroNews
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October 01, 2023
Aging Oil Palm Trees Show a Crisis Looms for the World’s Everything Oil
(Bloomberg) -- Across swathes of Southeast Asia, maturing palm oil trees, some as tall as a 12-storey building, are turning into a multi-billion dollar headache for local farmers, regional governments and consumers everywhere.
As oil palms approach their commercial lifespan of a quarter-century, they provide less of the versatile edible oil, used in everything from ice cream to cosmetics and fuel. Some plants become too ungainly to tackle for laborers, who rely on hand-held sickles attached to long poles. New palms, however, take several years to yield fruit in commercial quantities.
In palm-producing regions of Malaysia and Indonesia, where the pandemic led to a critical shortage of the manual labor on which the industry depends, an army of farmers has been postponing the inevitable. Squeezed by high costs and falling yields, many smallholders argue they can’t replant — and have no choice but to keep going.
The result is a significant delay to plantation renewal that will dent harvests in coming years, constraining exports from two countries that account for 85% of global production, which in turn may reduce profits for cultivators while pushing up global prices.
Oil World, a market researcher, warned last month of the consequences of an “alarming decline” in average yields due to slow replanting. Annual output growth may fall to 1.8 million tons or less in the 10 years to 2030, from an average of 2.9 million tons in the decade to 2020, the Hamburg-based outfit estimated. The El Nino weather phenomenon won’t help, and in the year ending September 2024, the annual output increase could be the smallest amount in four years.
“The concern is that the cost of production will become uncompetitive,” said Ivy Ng, head of plantations research at CIMB Investment Bank Bhd. in Kuala Lumpur. “The cost is going up, labor cost is going up, everything is going up — and yet your yield is falling because you didn't replant.” Bloomberg
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India-Telangana: Godrej to invest Rs 300 crore, create 2k jobs in Khammam
Godrej will establish India’s first private oil palm seed garden on this premises to develop seed varieties suitable for the local climate and will establish a nursery with the capacity to nurture 5 lakh saplings.
Hyderabad: Godrej Group plans to invest Rs 300 crore in Telangana by supporting 50,000 farmers and generating employment opportunities for 2,000 people in Khammam district.
State IT minister K T Rama Rao announced that the state is all set to become home for the Godrej Group. Participating in the groundbreaking ceremony of Godrej Agrovet, he said, “Godrej has come forward as a strong and reliable partner to Telangana and we are fostering a deep relationship across many sectors. Apart from oil palm, Godrej is looking at investments in dairy, pharma, personal care products (soaps, shampoos, cosmetics, etc.), furniture, real estate, retail, poultry, animal feed, and aquaculture. Announcements across these sectors will also shortly follow as we conclude discussions on the same.” Siasat
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Nigeria: Years of Lost Economic Opportunities
Nigeria's history, especially since independence in 1960, has been characterised by years of missed opportunities and the attendant shock on the economy.
Analysts said Nigerians are currently paying the price of the failure of successive administrations to take advantage of the immense opportunities that presented themselves at the dawn of Nigeria's independence from Britain in 1960.
Oil discovery has become Nigeria's developmental Achilles' heel. This is because more than six decades after independence and despite the huge human and natural resources available in the country, Nigeria remains one of the poorest countries in the world. The country has evolved into one of the least economically diversified countries because of her pathological dependence on oil export earnings.
Oil dependence is said to have led to the underdevelopment of manufacturing capacity for industrial exports, and export of processed agricultural goods. The oil sector has not significantly improved the well-being of Nigerians. Non-oil sectors lead to vastly more employment opportunities than the oil sector and their economic activities contributed approximately 93 per cent of GDP in 2020.
Unfortunately, despite the contributions of agricultural produce like cocoa, groundnut, and palm oil to Nigeria's economy and their potential to do better through higher production, value chain development, local consumption, and export, this subsector of agriculture has remained neglected and underutilised.
Economic analysts are still befuddled by the undesirable transition from a country with overwhelming economic potential on the back of agricultural produce, rich mineral resources, productive youth population, and culture of discipline at independence, to a mono-economy and the progressive erosion of the nation's economic potential. All Africa
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Ivory Coast deforestation rate rises as EU green imports law looms
LONDON (Reuters) – Deforestation in top cocoa producer Ivory Coast increased last year after declining for several years, a major report has found, raising questions about how the country will comply with a new EU law preventing commodity imports linked to forest loss.
The report was published by the Cocoa and Forests Initiative (CFI), a UN-backed partnership launched in 2017, when Ivory Coast, No. 2 cocoa grower Ghana and more than 30 major cocoa and chocolate companies signed onto it at the COP 23, in Germany.
Since 2019, the annual progress report published by the CFI has found consistent declines in rates of forest loss in Ivory Coast. Last year however, the trend reversed, with 62,000 hectares of forest lost after 26,000 hectares in 2021.
The report highlights the challenges of ending deforestation – the second leading cause of climate change after the burning of fossil fuels. It did not give reasons for the resurgence in deforestation rates, saying they are still being studied.
Ivory Coast’s Ministry of Water and Forests declined to comment on the deforestation rate increase. It is ramping up efforts to comply with the EU’s new deforestation law, which comes into effect as of end-2024.
Companies importing commodities like coffee, cocoa, beef, soy, rubber and palm oil – and related products – into the EU, will have to prove their goods are not contributing to deforestation anywhere in the world, or risk hefty fines.
“The CFI is a strong partnership … but we are not where we need to be,” Daan Wensing, chief executive of the non-profit IDH – a co-signatory of the CFI – said in statement.
“Deforestation in West-Africa continues to increase: this trend needs to be reversed. All actors need to step-up, and (put) plans into action.”
Cocoa accounts for about 15% of Ivory Coast’s GDP and more than 40% of its export earnings. The EU is its biggest cocoa buyer, meaning it would be costly for Abidjan to lose access to even a small portion of this market due to the new law. Reuters
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Democratic Republic of Congo Price Bulletin, September 2023
The Famine Early Warning Systems Network (FEWS NET) monitors trends in staple food prices in countries vulnerable to food insecurity. For each FEWS NET country and region, the Price Bulletin provides a set of charts showing monthly prices in the current marketing year in selected urban centers and allowing users to compare current trends with both five-year average prices, indicative of seasonal trends, and prices in the previous year.
Maize and cassava are the main staple foods consumed by households in the Democratic Republic of Congo (DRC), and is usually prepared in a dough-like consistency called fufu. The country is heavily dependent on imported maize, as local production of both maize and cassava is typically unable to cover local demand. Rice is the third most important staple food and is mainly consumed in larger urban areas, while beans is used in both urban and rural areas as an accompaniment to cereal-based dishes. Households in rural areas depend heavily on palm oil for food preparation. Maize, cassava, rice and beans are sold year round in key reference markets in Eastern DRC. Fuel prices and the quality of road infrastructure linking major rural production zones to large consumer markets are among some of the key factors that influence staple food prices in Eastern DRC. Relief Web
Aging Oil Palm Trees Show a Crisis Looms for the World’s Everything Oil
(Bloomberg) -- Across swathes of Southeast Asia, maturing palm oil trees, some as tall as a 12-storey building, are turning into a multi-billion dollar headache for local farmers, regional governments and consumers everywhere.
As oil palms approach their commercial lifespan of a quarter-century, they provide less of the versatile edible oil, used in everything from ice cream to cosmetics and fuel. Some plants become too ungainly to tackle for laborers, who rely on hand-held sickles attached to long poles. New palms, however, take several years to yield fruit in commercial quantities.
In palm-producing regions of Malaysia and Indonesia, where the pandemic led to a critical shortage of the manual labor on which the industry depends, an army of farmers has been postponing the inevitable. Squeezed by high costs and falling yields, many smallholders argue they can’t replant — and have no choice but to keep going.
The result is a significant delay to plantation renewal that will dent harvests in coming years, constraining exports from two countries that account for 85% of global production, which in turn may reduce profits for cultivators while pushing up global prices.
Oil World, a market researcher, warned last month of the consequences of an “alarming decline” in average yields due to slow replanting. Annual output growth may fall to 1.8 million tons or less in the 10 years to 2030, from an average of 2.9 million tons in the decade to 2020, the Hamburg-based outfit estimated. The El Nino weather phenomenon won’t help, and in the year ending September 2024, the annual output increase could be the smallest amount in four years.
“The concern is that the cost of production will become uncompetitive,” said Ivy Ng, head of plantations research at CIMB Investment Bank Bhd. in Kuala Lumpur. “The cost is going up, labor cost is going up, everything is going up — and yet your yield is falling because you didn't replant.” Bloomberg
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India-Telangana: Godrej to invest Rs 300 crore, create 2k jobs in Khammam
Godrej will establish India’s first private oil palm seed garden on this premises to develop seed varieties suitable for the local climate and will establish a nursery with the capacity to nurture 5 lakh saplings.
Hyderabad: Godrej Group plans to invest Rs 300 crore in Telangana by supporting 50,000 farmers and generating employment opportunities for 2,000 people in Khammam district.
State IT minister K T Rama Rao announced that the state is all set to become home for the Godrej Group. Participating in the groundbreaking ceremony of Godrej Agrovet, he said, “Godrej has come forward as a strong and reliable partner to Telangana and we are fostering a deep relationship across many sectors. Apart from oil palm, Godrej is looking at investments in dairy, pharma, personal care products (soaps, shampoos, cosmetics, etc.), furniture, real estate, retail, poultry, animal feed, and aquaculture. Announcements across these sectors will also shortly follow as we conclude discussions on the same.” Siasat
---------
Nigeria: Years of Lost Economic Opportunities
Nigeria's history, especially since independence in 1960, has been characterised by years of missed opportunities and the attendant shock on the economy.
Analysts said Nigerians are currently paying the price of the failure of successive administrations to take advantage of the immense opportunities that presented themselves at the dawn of Nigeria's independence from Britain in 1960.
Oil discovery has become Nigeria's developmental Achilles' heel. This is because more than six decades after independence and despite the huge human and natural resources available in the country, Nigeria remains one of the poorest countries in the world. The country has evolved into one of the least economically diversified countries because of her pathological dependence on oil export earnings.
Oil dependence is said to have led to the underdevelopment of manufacturing capacity for industrial exports, and export of processed agricultural goods. The oil sector has not significantly improved the well-being of Nigerians. Non-oil sectors lead to vastly more employment opportunities than the oil sector and their economic activities contributed approximately 93 per cent of GDP in 2020.
Unfortunately, despite the contributions of agricultural produce like cocoa, groundnut, and palm oil to Nigeria's economy and their potential to do better through higher production, value chain development, local consumption, and export, this subsector of agriculture has remained neglected and underutilised.
Economic analysts are still befuddled by the undesirable transition from a country with overwhelming economic potential on the back of agricultural produce, rich mineral resources, productive youth population, and culture of discipline at independence, to a mono-economy and the progressive erosion of the nation's economic potential. All Africa
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Ivory Coast deforestation rate rises as EU green imports law looms
LONDON (Reuters) – Deforestation in top cocoa producer Ivory Coast increased last year after declining for several years, a major report has found, raising questions about how the country will comply with a new EU law preventing commodity imports linked to forest loss.
The report was published by the Cocoa and Forests Initiative (CFI), a UN-backed partnership launched in 2017, when Ivory Coast, No. 2 cocoa grower Ghana and more than 30 major cocoa and chocolate companies signed onto it at the COP 23, in Germany.
Since 2019, the annual progress report published by the CFI has found consistent declines in rates of forest loss in Ivory Coast. Last year however, the trend reversed, with 62,000 hectares of forest lost after 26,000 hectares in 2021.
The report highlights the challenges of ending deforestation – the second leading cause of climate change after the burning of fossil fuels. It did not give reasons for the resurgence in deforestation rates, saying they are still being studied.
Ivory Coast’s Ministry of Water and Forests declined to comment on the deforestation rate increase. It is ramping up efforts to comply with the EU’s new deforestation law, which comes into effect as of end-2024.
Companies importing commodities like coffee, cocoa, beef, soy, rubber and palm oil – and related products – into the EU, will have to prove their goods are not contributing to deforestation anywhere in the world, or risk hefty fines.
“The CFI is a strong partnership … but we are not where we need to be,” Daan Wensing, chief executive of the non-profit IDH – a co-signatory of the CFI – said in statement.
“Deforestation in West-Africa continues to increase: this trend needs to be reversed. All actors need to step-up, and (put) plans into action.”
Cocoa accounts for about 15% of Ivory Coast’s GDP and more than 40% of its export earnings. The EU is its biggest cocoa buyer, meaning it would be costly for Abidjan to lose access to even a small portion of this market due to the new law. Reuters
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Democratic Republic of Congo Price Bulletin, September 2023
The Famine Early Warning Systems Network (FEWS NET) monitors trends in staple food prices in countries vulnerable to food insecurity. For each FEWS NET country and region, the Price Bulletin provides a set of charts showing monthly prices in the current marketing year in selected urban centers and allowing users to compare current trends with both five-year average prices, indicative of seasonal trends, and prices in the previous year.
Maize and cassava are the main staple foods consumed by households in the Democratic Republic of Congo (DRC), and is usually prepared in a dough-like consistency called fufu. The country is heavily dependent on imported maize, as local production of both maize and cassava is typically unable to cover local demand. Rice is the third most important staple food and is mainly consumed in larger urban areas, while beans is used in both urban and rural areas as an accompaniment to cereal-based dishes. Households in rural areas depend heavily on palm oil for food preparation. Maize, cassava, rice and beans are sold year round in key reference markets in Eastern DRC. Fuel prices and the quality of road infrastructure linking major rural production zones to large consumer markets are among some of the key factors that influence staple food prices in Eastern DRC. Relief Web
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Palm oil news. CSPO Watch October 2023