Showing posts with label environment. Show all posts
Showing posts with label environment. Show all posts

Saturday, May 29, 2010

Sustainability: New Market for Certified Sustainable Oils and Fats?

Confusion reigns over certified and uncertified oils

In recent years, the Western Environmental NGOs (WENGOs) together with producers and buyers of palm oil have attempted to promote the development and market for certified sustainable oils and fats products in addition to existing non-certified products. This has resulted in two types of market for oils and fats: the certified sustainable oil market and the market for normal oils that are not certified. The most desirable and ideal market is of course one where the oils and fats products are proven to be sustainably produced. The proof is via a certification and auditing process where the oils or fats which are found to comply with a set of sustainability principles and criteria will be issued certificates attesting to their sustainable production and processing. These products are supposed to be marketed at a premium to meet the needs of sophisticated markets especially in the EU. In the case of palm oil, such products are referred to as Certified Sustainable Palm Oil in general or Certified RSPO palm oil (CSPO) if the RSPO system is used as the basis for auditing and certification. In contrast, the main market is still mostly for non-certified normal palm oil. Such products cannot be marketed as sustainable as the WENGOs will protest that there is no proof of sustainability. Neither can it be labeled as unsustainable palm oil as there is no proof for that either.Unfortunately, Certified RSPO palm oil has received limited acceptance thus far. The available capacity in Malaysia of about 1 million tonnes of CSPO palm oil has not been fully taken up. Only 30 % of the potentially available RSPO palm oil has been exported to the EU. The main excuse is the lack of willingness of the importers to pay a premium to offset the initial cost of certification. To make matters worse, some of the WENGOs are casting doubts on the ability of RSPO members to supply sustainable palm oil.

Friday, October 23, 2009

Environment Comment

Mr Sean Whyte complained in the media as an NGO that the NGOs are doing a good job telling the truth about the manner that the oil palm industry is run. This is a good start and the role played by the NGO is most appreciated. As far as Malaysian oil palm industry is concerned, there are numerous laws in this country to protect the industry, environment and the people. NGOs are encouraged to report to the authorities of any wrong-doings, and culprits would be punished. If no report of wrong-doings can be submitted, then NGOs are simply acting as critiques spreading erroneous assumptions and "it was reported" type "facts" again and again. Let us have the complaints in the form of an official report, and the industry through its enforcement body such as the MPOB can response to the complaints. Thank you for your good intention.

Yusof Basiron CEO MPOC

Tuesday, September 1, 2009

Perverted Views of Anti-Developing Country(ADC) Environmentalists

Fanned by media support, the anti-developing country environmentalists are desperately competing for the limelight by making outrageous statements hoping to impart maximum damage to the image of products exported from developing countries. The Friends of the Earth (FOE) was recently quoted as saying that “palm oil helps nobody” in their eagerness to campaign against the use of palm oil in Cadbury chocolates in New Zealand. Palm oil, exported mainly from Malaysia and Indonesia, is produced from legitimate agricultural lands just like competing soyabean or rapeseed oils. FOE is well aware that palm oil has helped farmers in Malaysia and Indonesia climb out of the poverty trap which has long been afflicting developing countries. With oil palm as their main crop, farmers in Malaysia and Indonesia are earning US $20 per day presently as compared to US$ 2 per day 30 years ago when oil palm was not a major crop. Campaigning against the produce of developing country farmers by some developed country NGOs is considered plain unethical as these farmers and plantation workers want to have a better life just like their counterparts in developed nations.

In a related event, Greenpeace, an EU based NGO, recently campaigned for New Zealand farmers against the use of palm kernel meal as animal feed for the dairy industry. Greenpeace “attacked” the famous milk brand of New Zealand (Fonterra) by alleging that demand for palm kernel meal by milk farmers will help cause deforestation.

Getting the facts wrong can be counterproductive. The natural forests of New Zealand were mostly wiped out within a generation of white settlements in the 19th and 20th centuries. These natural forests were replaced with grazing land, to produce milk, meat, and wool which are the main exports of New Zealand. One wonders why an agricultural product produced out of deforested land in New Zealand is acceptable to Greenpeace while an agricultural product from Malaysia is often demonised. Both countries cleared land for agricultural purposes long ago, and the extent of deforestation was much more extensively carried out in New Zealand compared to Malaysia. Yet no questions are raised on this matter? Why are NGOs selectively picking developing countries for their campaigns when the actual land clearance is much more obvious in countries like New Zealand and others?

It puzzles me when NGOs ask Cadbury to use cocoa butter rather than oil palm fat in their chocolate formulation. This surely does not solve the problem of alleged deforestation since cocoa is also planted on the same tropical land of Malaysia where oil palms are grown. Are these so called greenies aware that more land needs to be allocated to planting cocoa (more deforestation possibility?) since the fat yield of cocoa is very low as compared to oil palm.

Discouraging New Zealand farmers from using palm kernel meal as part of feed material for dairy cattle will damage the milk industry as yield of milk will surely decline. (Palm kernel meal helps increase milk yield in dairy cattle significantly). Without palm kernel meal, farmers have to supplement the feed shortage and overcome yield decline, by having larger grazing areas which mean a much larger area needed to be deforested in New Zealand.

In the 1950s to 1990s,when Malaysia opened up its jungle land to resettle landless farmers , surveyors from New Zealand were employed to identify land areas suitable for agriculture to plant oil palm and rubber. Are these knowledgeable surveyors not recognised for their contributions to help develop the Malaysian economy?

To me forests, whether temperate or tropical, are valuable to sequester carbon dioxide to prevent global warming. Why then are forests in tropical countries the only target for preservation? This would give developed country farmers a big advantage in exporting their agricultural products unimpeded compared to us in the developing countries. Thus the “ruling by the ADC NGOs” can only apply to those with perverted view points or those naturally opposed to developing countries trying to develop their economy and export agricultural products to earn a decent income. By practicing double standards these perverted NGOs will conveniently ignore the over-deforestation that has taken place in the developed countries which continues till today. If the intention is to reduce carbon emission, let focus on the real culprit: the use of fossil fuel contributes up to 80% of global CO2 emission which mainly occurs in developed countries, but guess who gets the eventual blame - again China and India - .. another popular perverted viewpoint of some NGOs and even western governments.

While writing this piece, the Hon. EU Ambassador to Malaysia came to my office to discuss progress in the palm oil industry in relation to the EU proposed legislation for renewable fuels. He confirmed the concern of the EU for Malaysia not to repeat the mistakes of the developed countries which have over-deforested and have lost biodiversity due to extensive agricultural development. I wonder if the EU automatically assumed that Malaysia will make the mistake of developed countries. When asked why the EU cannot correct their own mistakes by replanting the lost forests, he replied that it was difficult (I couldn’t help thinking that they can spend billions sending people to the moon!), but did say that some countries are beginning to reforest. I also pointed out that on a per capita basis, our forests are currently providing a free service by cleaning up (sequestering) the CO2 emitted by developed countries because of their high per capita consumption of fossil fuel, and our countries should be compensated. There are no freebies in this world. In response, the Hon. Ambassador was keen to explore Malaysia’s proposal as he believes that Malaysia has some possible solutions to offer which the EU may be keen to pursue.

Malaysia should therefore be able to offer its oil palm production model that is linked to the EU concept of sustainable development if the EU in return offers to compensate for sacrifices made to maximise our forest cover. Currently Malaysia’s reforestation programme is funded by the government to the tune of RM 2 billion under the 9th Malaysia’s Five Year plan. In the coming 10th Malaysia’s Five Year Plan, the timely availability of a compensation scheme from the EU could further extend the reforestation programme. Such win-win proposal will allow the EU and their NGOs the opportunity to pay for the extra forests that they desire while our agricultural products such as palm oil are not haressed through the threat of legislations and other trade barriers which could undermine the income of developing country farmers.

Wednesday, March 26, 2008

Question of Sustainability



We receive many requests for information on sustainability of the palm oil industry. Those involved in the palm oil industry like to have information to counter negative allegations linking oil palm cultivation to potential deforestation. Those in the middle of the debate want to know more of the true situation in order to form their own opinion. Those NGOs and their followers bent on opposing the growth of the oil palm industry simply want to demonise the palm oil industry whenever they could without regard to the facts or supporting statistics.

For example, statements are made accusing the oil palm plantations as the cause of deforestation in Malaysia. These statements are never supported by statistics or verified evidence. Isolated cases of bad practices in other countries are used to generalise for the whole of the oil palm industry including those in Malaysia.

The most important point to note is that oil palm is our agricultural crop, planted on legitimate agricultural land which the country has zoned for agricultural use. Compared to other countries the use of land for agriculture in Malaysia is very conservative, about 20 to 24 % of total land area of 33 million hectares. We choose to plant oil palm and rubber on the majority of the agricultural land of the country; that is the choice of the farmers and land owners. They could have planted soyabean or corn. Would that make soyabean or corn non sustainable?

Some NGOs and their followers even influence legislators to avoid using palm oil as a source of biodiesel. They also support well-known supermarkets or consumer products companies to avoid using palm oil products. This is obviously unfair as legitimately produced palm oil from Malaysia is denied access to their countrys' markets while their countrys' products continue to enjoy access to Malaysian markets. As a small developing country, we need to generate foreign exchange revenue from exporting palm oil to import goods from other countries. If our major agricultural produce like palm oil is denied access to certain countries, we will soon be unable to import other countrys' products for lack of foreign exchange.

A country in economic dificulty will not be able to care or pay for environmental conservation which is the original objective of the environmental NGOs in their campaigns against palm oil.

Malaysia is presently able to have a clear forestry policy to have about 50 to 60% of the country land area to be under permanent forest. Sustainable forest manangement systems are in place and laws are also in place to prevent the permanent forest areas from being converted to agriculture or other uses. We could easily announce a meratorium on deforestion of our permanent forest but this has to come at a time when the least developed state in the country has had the time and opportunity to develop their resources sustainably. For example, the state of Sarawak has lagged behind in agricultural development and less than 8% of the country is under agriculture, compared to the UK, a similar size country which has 70% of its land under agriculture.

As President of Brazil recently said at a meeting with 100 international legislators in Brazilia regarding deforestation and global warming "How can we ask the poor countries to take on the sacrifices the others didn't take on?", alluding also to the fact that industrialised countries are to blame after polluting the planet for centuries.

The Malaysian oil palm industry is working towards the need to produce certified sustainable palm oil by supporting the Round Table on Sustainable Palm Oil (RSPO) initiative. Other efforts are made to ensure the protection of wildlife habitats and biodiversity. Such efforts will take time, and need financial support. The Malaysia Palm Oil Wildlife Fund (MPOWF) is being used to help in this initiative. It is a matching fund that the MPOC will honour to match if donors come forward to contribute to finance a specified wildlife or biodiversity conservation project. Please contact us for more details and share the burden of maintaining a sustainable planet.