Tuesday, October 27, 2009

Misquoted in The Star Newspaper

Ms Hillary Chew is a respected environmental campaigner for the Star and should not write words as though they were from my statements. I never said that oil palm plantations are good habitats for orang utans. Additionally, I have never seen statements by the oil palm industry insisting that the oil palm plantations have no less biological diversity than the natural forests. These are Ms Chew's own words.

Those attending the recent orang utan colloquium are free to report in any way they like. In my view, the most important finding is the report by Dr Acrenaz that the orang utans do indeed feed on the loose fruits of the oil palm. Previously, the other orang utan "experts" insisted that orang utans do not eat the oil palm fruits.

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.

Tuesday, July 7, 2009

The Blame Game on Carbon Emission, Sustainability & Rainforest Conservation

The proposed Copenhagen Climate Change Summit in December 2009 has generated intense interests from the EU and USA to advance their initiatives on reducing carbon emission to fight global warming and climate change. The EU which is hosting the summit is expected to aim for a successful adoption of an international emission mitigation agreement. However, as there are still many issues to be resolved in order to agree to a common position, the NGOs are expected to intensify their lobbying efforts on policy-makers to keep up the pace of negotiations.

In the run-up to the December event, stakeholders should watch closely the arguments that will dominate the debate. The focus will be on the position of individual countries regarding the amount of green house gas(GHG) that they emit to the atmosphere. If a country is a net emitter of GHG, it will be labeled as a “carbon source”. If it is a net sequester of GHG it will be regarded as a “carbon sink” . The largest source of GHG responsible for the increase in carbon dioxide (CO2) in the atmosphere over the last 100 years is mainly attributed to fossil fuel, which is reported to be responsible for up to 80 % of total increase in global emissions. Global warming, when linked to carbon dioxide emission should be attributed to this fossil source. The developed countries, which emit a high per capita CO2, will likely point fingers at countries with large population base like China and India, therefore denying their role in increasing global emissions.

To further divert world attention, issues of minor relevance such as rainforests conservation will be brought into mainstream discussions. Many EU and US NGOs are already seen to be forming or aligning themselves with their favourite rainforest and orang utan conservation movements by preparing reports to champion this cause in the tropics. Agricultural crops of tropical countries are often blamed by these NGOs for deforestation and used as a disguise for causing global warming. Of course, the web pages of these NGO also call for donations from the public to join them in pursuing the rainforest conservation initiatives, where apparently a lot of money can be raised through the rainforest and orang utan conservation debate. After all, the cuddly orang utan easily moves the emotions of uninformed consumers.

Some of the absurd arguments already proposed by global warming scientists and NGOs are as follows:-

The USA and the EU which previously were a “carbon source” because of deforestation for agricultural development many decades ago are now labeled as a net “carbon sink” because some agricultural land areas abandoned by farmers have reverted to become forests again. The catch in this argument is that although the original CO2 released during the first deforestation is still in the atmosphere, the global warming scientists are now ignoring this fact and are assuming that if agricultural land is reforested, the land will automatically become a new carbon sink. Logically, the reforested land can only sequester a fraction ( generally less than 100% ) of the CO2 originally released to the atmosphere during the first deforestation. It would be impossible for the same land to revert to a 100% carbon sink status again unless the new forest exceeds the carbon capture capacity of the original forest. It is ironic that the global CO2 emission map of some climate change scientists only focuses on emission effect of deforestation over recent times in order to show favourable carbon sink effect of developed countries. Developing countries which still need to clear land to develop for agriculture will show poorly as an increasing carbon source. The fact that developed countries need to reforest because they have little forest left and the need of developing countries to develop their agricultural industries because they have not been developed yet will likely to be ignored in the debate. Furthermore, the emission effect of fossil fuel use is likely to be ignored in order to have a convincing map for the USA and Europe to avoid carbon emission and global warming blame and therefore conveniently shifting it to deforestation in developing countries.

Based on the above scheming, South East Asian countries will be depicted in a global map as a “carbon source” because agricultural lands are created through so called recent deforestation. The global warming scientists argue that for the developed countries, where deforestation was carried out decades ago, past CO2 emissions would be treated as “sunk costs” in their creative accounting, and if farmers voluntarily reforest, the land is regarded as a new carbon sink. In this way they believe that even if the agricultural land is not reforested, the land is no longer regarded as a carbon source because the CO2 from the original deforestation is already in the atmosphere. Fortunately, this simplistic argument of indirect land use effect (ILUC) was questioned in the recent US House of Representatives debate last week, and they rightly decided not to allow, in the next 5 years pending a further study, the use of such ILUC calculations in arriving at sustainable biofuel criteria, because if proper evaluation is carried out, corn biofuel cannot pass as a carbon sink when the past deforestation effect of the land is taken into consideration.

Many versions of this “creative accounting” of carbon emissions are likely to surface as we approach the Copenhagen meeting. Arbitrary cut-off dates for deforestation to develop agricultural land have already been proposed in the RSPO criteria and the EU renewable energy directives. Emission capping, emission saving limits and reduced emission from deforestation and degradation (REDD) initiatives are being proposed by some circles in the EU to help prevent deforestation. Unsubstantiated NGO reports are regularly surfacing to justify some of these arguments to push the global warming blame to deforestation of rain forests in South East Asia. For these obvious reasons, the palm oil industry is dragged in and used as a camouflage to devert attention from the actual problem. With all these proposed initiatives to prevent deforestation of tropical forests, numerous possibilities for creative accounting will be available and many potential regulations will follow which essentially will become trade barriers to products exported from developing countries. Logically, if 80 % of global CO2 emission is from fossil fuel, 80 % of the debate should be dedicated to finding solutions to mitigate the contribution of fossil fuel emission mainly by the developed countries.

If only 20% of global emissions is attributed to deforestation, we must also logically look at where agricultural land areas are residing and attribute the loss of forests to these lands. These agricultural lands carry with them carbon emission debts due to deforestation irrespective of whether the forests were cleared decades ago or recently because the CO2 remains in the atmosphere and acts as a GHG to raise global temperature. The rainforests and temperate forests may vary in their carbon emission capacity when deforested but the variation is less than 20 % and the global warming blame should also apply equitably to deforestation that has occurred in the developed countries.

If we revisit the data that world agricultural land area is over 4967 million hectares, and assume that these areas make up most of the other 20% emission due to past deforestation, the proportion of total oil palm area for both Indonesia and Malaysia of slightly over 10 million hectares would not constitute much compared to world agricultural area. Therefore, it follows that deforestation due to the development of agricultural land to plant oil palm is equally small. If the 4.5 million hectares of oil palm area of Malaysia, being part of our agricultural land, constitute only 0.09 % of global agricultural areas and therefore assumed to account for only 0.09 % of global deforestation due to the country’s oil palm agricultural development, it does not deserve to be smeared as a cause of deforestation as propagated by some overzealous NGOs. Further, if deforestation as opposed to fossil fuel is only contributing 20 % towards global warming effects, Malaysian palm oil’s contribution of 0.09 % of global deforestation will only have 20% of 0.09% i.e.one fifth or 0.018% of global warming effect. If the temperature rise, as projected by global warming scientists, is to increase by 2 degrees centigrade in the tropics in the next few decades, the effect of 0.018% contribution from deforestation due to Malaysian oil palm plantations is mind-bogglingly small - 0.00018 x 2 or 0.00036 degrees centigrade! I must admit that as an engineer, my arithmetic calculation is often reduced to approximation to the nearest 1 or 2 decimal points and the above figure should just be read as zero.

I have not even added the carbon sequestration effect of the oil palm as forest species when planted on agricultural land in the calculations. If global warming scientists insist on painting a rosy picture of the US becoming a carbon sink because some farmers allow trees to re-grow on their abandon farm land, it must similarly be recognised that the oil palm farmers have been doing just that all along i.e. planting trees on their agricultural land; therefore oil palm cultivation should be equally regarded as a carbon sink. However, unlike the reforested abandoned farm land of the USA which has minimal output, oil palm plantations also allow the world to be supplied with a vital food source globally while locally, the crop keeps poverty away from ravishing the rural community of developing countries like Malaysia, Indonesia, Columbia, Nigeria and many others. But the many proposals for “creative carbon accounting” (or in short cheating) being suggested by vested interest groups in the developed countries will not recognise the advantageous carbon sink attributes of the oil palm to mitigate global warming unless the developing countries have a real say in the negotiations in the Copenhagen Climate Change Meeting in December this year.

(As a footnote, I need to inform that the global warming scientists do not know where a significant 33 % of total disappearance of CO2 is attributed to. The oceans absorb a significant amount of CO2. Increased levels of CO2 in the atmosphere also facilitate more photosynthesis by plants leading to greater utilisation of CO2. Tropical and temperate forests absorb a lot of CO2. These still could not account for the remaining 33% disappearance of CO2. In the absence of reliable scientific explanation, global warming scientists resort to modeling climate change using assumptions and scenario buildings. Under such situations, any likelyhood of global warming scenario can be generated by the models depending on the assumptions used. Non scientists and lawmakers should not rush into any conclusions regarding global warming as all that the scientists can do at present is to develop models and simulate outcomes based on their favorite assumptions.)

Wednesday, May 6, 2009

Palm Oil Exploited to Fuel Culture of Lies

The UK Independent newspaper has recently published a report to reveal the presence of the ever popular palm oil in food products in the country. The report does not reveal anything new. It has always been known that palm oil is widely used in numerous food products that we use or consume everyday . In fact, credit should be given to the UK for promoting the use of palm oil in food products since the beginning of the 20th century because the British were among the early pioneers to cultivate oil palm in the Far East and import palm oil to supplement the chronic shortages of oils and fats in the country.

What is new in the report is the vengeance with which the Independent took it upon itself to demonise palm oil with the accusation that this ever popular palm oil causes "catastrophic impact on the wild life of Malaysia ...",... " whose rainforests are being cleared to grow the crop". Many other unfounded statements taken without close scrutiny for accuracy from NGOs environmental campaign reports are used by the Independent to justify its call on the food industry to stop using palm oil.

I actually analyse every sentence on the front page of the lead article:"An oil shock we cannot ignore" by the Independent on 1st May. Almost every sentence on the page is not true and therefore a lie. How is it that newspapers like the Independent are resorting to telling lies to make a sale nowadays. Is it that bad in the UK? True, these dramatic sentences were already mentioned by NGOs in their past reports, but that does not qualify them to be taken as truths.

We all know that the culture of lying was developed into a fine art by President Bush and PM Blair when they tried to make a case for invading Iraq. Look at where they are now after their own people rejected their brand of leadership. Unfortunately, the Independent sees it fit to propagate this new culture of lies, under the guise of going green. I can therefore predict that the Independent newspaper will soon loose credibility and go out of print for propagating lies. How long can one lie to the public even if they are vulnerable during these difficult times of gloom and doom.

Attacking the agricultural produce of developing countries using fabricated lies manufactured by the Greenpeace and other UK led environmental NGOs is uncalled for as our farmers have been growing oil palm on their legitimate agricultural land long before the Independent was established. Why it it that all of a sudden our palm oil that feeds billion of people round the world is projected as undesirable. Palm oil was not denied its role in the food industry when the British owned most of the oil palm plantations in Malaysia in the 1960s and 70s. Malaysia has not deforested its land in the way portrayed by the Independent. Our permanent forests are intact and protected by law and cannot simply be converted for oil palm cultivation. This is why we still maintain more than 55% of Malaysia under permanent forest cover compared to just 11 % of forest left in the UK. World deforestation is occuring at the rate of 10 million hectares per year. Oil palm is not to be blamed as the deforestation rate is totally uncorrelated to the combined oil palm area of Indonesia and Malaysia of only slightly over 10 million hectares created after being in existence for about 100 years.

We live in a world that is littered with half truths, many of which are propagated by intelligent people. Have they ever wondered on the implications of their actions which may affect the livelihood and families of oil palm farmers in distant countries. Many of these farmers are probably living from hand to mouth on a daily basis and struggling to feed their families with a sustainable source of decent income. Terrorizing the oil palm industry by publishing blatant lies can be likened to the Somalian pirates who live on immoral earnings by attacking defenseless ships passing their waters.

The writers responsible for the Independent controversial articles are either very ignorant about deforestation in Malaysia or they are simply cashing in on the readers appetite for dramatic stories even if they betray the public trust on them to report factual truth. We have often opened our doors by inviting the UK media and NGOs to dialogue but they resort to using the printed media to tell blatant lies on palm oil sustainability. For example, a palm oil sustainability seminar was held in London in March 2009, but the media and some relevant NGOs failed to show up despite many of them having registered to attend. I would encourage these misguided writers to be brave enough to visit a real oil palm plantation in Malaysia and tell our oil palm farmers why the palm oil that they produce is not as acceptable as the olive oil produced by the EU farmers.

In my assessment, oil palm plantations in Malaysia are anytime better farm models than olive plantations in Europe, or any large scale farm operations in the UK. Why must the Independent newspaper "attack" our well managed agricultural oil palm farms and not "attack" the inferior and subsidised farms operated in Europe. For example, olive plantation farms in the EU (I saw some in Spain and Portugal while on holidays) use too much water or need irrigation; they are proned to desertification and soil erosion by wind; they have almost no biodiversity, and contribute minimally in combating global warming. The olive plantations are so inferior in environmental sustainability compared to oil palm plantations in Malaysia that it is a shame that the NGOs and Independent newspaper decided to pick to denigrate palm oil and not olive oil.

If the argument is against deforestation that took place long ago to create these olive and other farms around the world including oil palm cultivation, let it be known that the land used for oil palm cultivation in Malaysia is only 0.09% of total world agricultural area. Surely 0.09 % of world agricultural land is not responsible for world deforestation or global warming; it is more logical to focus the blame on the rest of the 99.91 % of the world agricultural areas which reside mostly in the developed countries. What the Independent is doing is like blaming the Malaysians for global warming because we use a few cars when in fact the developed countries are the ones using cars more intensively and should be blamed for global warming.

The Independent article still talks of raising money in the West to give to Malaysia to help save rainforests and such a move apparently will be proposed at the coming climate change meeting in Copenhagen in December. It is a good idea if the West can "bail out" the rainforests (in addition to their banks and car firms in financial trouble) from being decimated especially for areas in the tropics where forests are truely being removed. But focusing on Malaysia as a location of deforestation is the wrong target and attributing the blame to palm oil is truely cruel as contrary to the allegations, palm oil is likely to help save forests by indirectly preventing clearing of forests for planting soyabean and rapeseed to overcome world shortages in oils and fats. This is termed the "deforestation avoidance" effect of high yielding oil palm when palm oil from Malaysia is imported to meet world shortages (see previous blog article).

It would be even better if the Independent proposes to promote reforestation to combat climate change by allowing more trees to sequester green house gases (GHG),and the UK is the best place to start the initiative as it is also the one with the least percentage of forest left and so far no effort to reforest is announced yet. I was also informed that the UK had only two species of frog left and yet the Prince Charles Rainforest Initiative is using the frog (toad) as an icon in the hope of saving frogs in the tropics. Could this be another wrong target of focus due to misinformation? (I will talk of the 'frog trap' set in Brazil in my next article in this blog).

Yet another relative (sister-in-law) of the present Prime Minister is reported in the Financial Times (May 6, 2009) to be secretely filming the Penans of Sarawak to raise Western sympathy to save rainforests from the logging industry. This apparently is setting the stage for supporting the Prince Charles Rainforest Initiative which was launched the previous day. Actually, the Penans have chosen to cultivate their land with oil palm (being the most viable agricultural crop as an alternative to rubber)and some are already becoming millionaires; why is it that Ms Rewcastle (The PM's sister in law) is not keen to interview these progressive Penans and learn of their plans and aspirations. She should ask the Penans as to who among them do not wish to be wealthy like the successful (wellknown Penan millionaire) oil palm plantation owner.

I hope the Prince Charles Rainforest Initiative will stumble onto my Blog and discover that the rainforest destruction report submitted by unscrupulous NGOs are false generalizations, especially for Malaysia. The Independent newspaper may not want to publish counter viewpoints from Malaysia as they have editorial control over what can be published in their own papers and seem to monopolise the media. But with the Internet nowadays, one cannot stop other people from telling the truth, or pointing out the inferior standards of olive farms in the EU when compared to oil palm farms in Malaysia.

Friday, April 24, 2009

De-linking NGOs Concerns over Deforestation and Palm Oil

1. A few years ago when oils and fats were cheaper than petroleum, the EU and USA rushed to promote the use of biofuels for various reasons. One not-so-frankly-revealed reason was that oilseed farmers will benefit from the new market outlets and the increase in prices. The governments also benefited from this strategy because agricultural subsidies would be reduced if prices of soyabean and rapeseed were high and price support subsidies would not be needed. In addition, it makes good political statements to say that biodiesel will help reduce global warming through reduced green house gas emissions, and also enable the countries to be less dependent on imported petroleum fuels.


2. Diverting a major portion of rapeseed and soya oil supply and stocks for biodiesel did result in increasing prices which benefited the EU and US farmers tremendously between 2004 and the middle of 2008. During this time, it became obvious that palm oil was a potentially good raw material to participate in the biodiesel industries in both the EU and USA as it is generally cheaper than soyabean or rapeseed oil. This resulted in increasing concern amongst the EU biodiesel lobbies who are integrated with the rapeseed industry over the potential competion from palm oil and they tried to prevent it from being imported for biodiesel production and use in the EU. This was also to ensure that biodiesel subsidies are not shared with competing imported oils.


3. Various trade barriers were set up by the goverments. For example, biodiesel standards were developed in the EU to disqualify palm oil biodiesel from being accepted. The cold flow plug point(CFPP) standard was introduced to ensure palm oil did not meet the required test and the anti palm oil lobby was relieved at the new arrangement. However, the Malaysian Palm Oil Board (MPOB) announced that palm oil biodiesel methyl esters can be processed with a new technology that would overcome the CFPP problem. Furthermore, if the blending of biodiesel is only at 5%, the CFPP value of palm oil biodiesel methyl esters becomes irrelevant as the 5 parts of palm biodiesel is totally dissolved by the 95 parts of petroleum diesel giving an acceptable blend. However, unknown to many, tallow produced in the EU and used for biodiesel would also fail the CFPP test and this would not go well with the local tallow lobbies.


4. EU farmers continue to question the reason for an imported commodity such as palm oil biodiesel to be accorded biofuel subsidy which is meant for local oilseed farmers. The outcries became louder as some power plants began to use palm oil as biofuel and enjoyed the subsidies and the cheaper prices. The rapeseed lobbies were worried that by allowing cheaper palm oil for use as biofuel in vehicles and power plants, it will eventually affect the demand for local oils, and create a substantial outflow of subsidies.(This narrow view ignores the fact that Malaysia imports large amount of EU and US goods and needs market access for its exports in order to remain a valued trading partner.)

5. A new import barrier for palm oil was subsequently introduced arising from the view of the former Dutch Environmental Minister who argued that if palm oil is encouraged for use as biofuel it would stimulate an increase in production leading to the opening of forest land. This apparently will affect the environment, animal habitats and biodiversity. He was able to introduce the fear factor of what could happen in the future if palm oil demand undergoes a rapid increase.


6. The environmental NGOs were quick to sieze on the opportunity to harp on the fear of potential deforestation, and started to report on orang utan habitat loss and global warming effects of oil palm cultivation on peat. The change in focus from deforestation due to logging to now oil palm plantation became a refreshing rallying point for NGOs perpetual campaigns. Afterall palm oil has more money to offer than the logging industry which has over the years witnessed a decline.


7. Once the issues of deforestation and palm oil fell into the hands of NGOs like FOE and Green Peace who use unscrupulus methods to attack their target victims, the whole issue of biodiesel development and protection of subsidies was totally forgotten. The farmers in the EU and USA who are worried by palm oil invasion for the new found application of their oils and fats as biodiesel are totally served by the NGOs who gladly run the anti-palm oil campaign while pocketing huge amount of funds. The collusion to get the NGOs to campaign against palm oil was cleverly disguised. It was reported for example, that the Dutch Lottery money of a staggering US$2 million was instrumental in financing Green Peace to carry out a blockade of a ship carrying palm oil from leaving an Indonesian port to sail to Europe in 2007.


8. It is clear that the fear factor used is based on the assumption that if demand for biofuel is increased, more oil palm cultivation will occur thus causing deforestation. Fortunately, Malaysia has consistently proven the assumption as baseless and wrong.


9. Let me debunk the various fallacies that are often cited to paint a bleak picture of the ever popular oil palm.


Fallacy 1 Oil palm plantations are claimed to be the cause of deforestation. Palm oil producing countries such as Malaysia have permanent forest reserves which take up to 55% of the country's total land area. Laws are in place to disallow these permanent forest areas to be converted to other uses including for agriculture or growing of oil palm. The remaining forest areas are meant for conversion into other uses, including agriculture. Some of these conversion forest areas are already alienated to individuals or organisations although the land may still not yet be converted and remain under forest cover. NGOs like Green Peace argue that these unconverted areas should be declared as forest through a moratorium on deforestation which essentially means a stop to a developing country like Malaysia from using its potential agricultural land to improve the life of its farmers. It is equivalent to asking the EU farmers to reforest back some 50 % of their agricultural land to help prevent global warming and preserve biodiversity. In all fairness, Greenpeace should agressively campaign for reforesting 50 % of agricultural land of the UK and EU and if successful, Malaysia should have no problem following the standard set by the EU in terms of land use ratio for agriculture.


There are also calls by NGOs for the Prince Chales Conservation fund to compensate developing countries for conserving more forests. Logically, these funds would be better used to reforest the over extended and over deforested agricultural areas in the UK. Most agricultural land can be easily reforested if so desired. The slogan "Plant Thy Own Forest" and "Stop Envying Thy Poor Neighbours Green Backyard" can be adopted. Otherwise Green Peace is cunningly introducing double standards where the EU can deforest and develop these areas into agricultural land, while the developing countries farmers are comdemmed to perpetual poverty by preventing them from exercising their sovereign rights to develop their agricultural land.


Fallacy 2 -It is often claimed that the expansion of oil palm cultivation will affect the habitats of the orang utans in Sabah and Sarawak. A recent study revealed that orang utan population is Sabah has not declined because the permanent forest area ( the favourite habitat of the orang utans that was surveyed five years ago)has not changed over the last five years. The study further revealed that the orang utan population in the non-permanent forest areas is increasing based on the survey of nesting sites. More surprisingly, orang utans living near oil palm plantations were observed to regularly visit the plantations to feed on loose oil palm fruitlets and benefit from an all year round availability of a healthy food source which is naturally rich in vitamin A and E, giving the orang utans a healthy shining coat. This suggests that development of the oil palm as a crop and conservation can successfully operate side by side.


Fallacy 3 The third fallacy is linking oil palm to deforestation and attributing this to global warming. The oil palm planted area of 4.3 million hectares in Malaysia represents a mere 0.09% of the world agriculture land. Assuming these areas were originally forests, Malaysia's share of deforestation for world food production is 0.09 %. I wait to see the NGO global warming scientists' prediction on the rise in global temperature caused by oil palm cultivation in Malaysia that resulted in 0.09 % of total deforestion via agricultural development. Even doubling the oil palm area may not add substantially to the world deforestation total. However, expanding oil palm may save deforestation by curtailing the rapid expansion of other inefficient land-use oil seed crops which need to be grown otherwise to overcome world shortages.


Cultivated Area of Oil Seeds in the World
Cultivated Area of Oil Seeds in the World | Click here to view the full resolution


Fallacy 4Potraying palm oil as inferior to soyabean or rapeseed oil in global warming debate. Oil palm in Malaysia and Indonesia is an agricultural crop which is grown mainly for the export market. We are the only two major net exporter countries (Argentina is a distant third)for vegetable oils and fats. The rest of the world are mostly net importers. It implies that if palm oil supply is reduced in the future, ten times more forest areas will need to be converted to agriculture to meet the shortages by growing soyabean or other annual oilseed crops compared to the area needed to grow oil palm to produce the targeted quantity of oil.


Mileage per hectare per year
Mileage per hectare per year - Based on a new VW Polo | Click here to view the full resolution


Recently, it was revealed that new varieties of oil palm are capable of increasing the yield by 3 times more and if further research to stabilise this yield potential is undertaken through international collaboration, palm oil can be a sound candidate to help solve not only future food shortages but also the biofuel need of the world. In simple terms, it has been calculated that a hectare of oil palm will potentially produce oil sufficient to fuel a VW Polo car 400,000 km of travel per year including the use of the methane fuel generated by the oil palm mill effluent, while a hectare of soya bean can fuel only 8,000 km of travel by the same car as a comparison. The irony is that the EU and USA are gladly promoting the most inefficient bio fuel derived from soyabean and rapeseed sources ,which can only mean massive deforestation possibly in Agentina, Brazil or where ever soyabean and rapeseed can be grown. The opportunity for oil palm to serve as an efficient fuel source and to save more forests from being converted into soyabean and rapeseed farms is sadly overlooked and we can only blame this on the manupulative science which is used by NGOs to raise emotions and blur the truth from reaching the attention of decision and policy makers in the EU and USA.

Wednesday, February 11, 2009

Revisiting Sustainable Palm Oil Production

I constantly receive invitations to speak at various seminars to explain the sustainability of palm oil production from Malaysia. Maybe it is confusing for the layman and industry players who receive conflicting claims from agencies like the Malaysian Palm Oil Council (MPOC) and Roundtable on Sustainable Palm Oil (RSPO), as opposed to counter-claims by NGOs some of whom are totally anti-business and anti-developing countries in their stance.

Some of the NGOs are habitually harassing members of the RSPO, an international organization formed to help improve sustainability practices in the production of palm oil around the world. Like any new set-up, results will be forth-coming in a matter of time. But, these NGOs keep changing the goal-post, even though other prominent NGOs are members of the RSPO and are responsible for crafting the principles and criteria upon which the certification of palm oil is carried out.

Even without the RSPO, palm oil production in Malaysia is governed by laws and regulations aimed at making the industry "viable". This "viability" provision was incorporated in the Malaysian Palm Oil Board’s (MPOB) act although at that time it was not fashionable to use the word sustainable . The dictionary states that viability and sustainability roughly have similar meanings.

The palm oil industry is among the first to consciously apply R&D, licensing and registration activities to ensure the viability and sustainability of the industry. These are the functions entrusted and carried out by MPOB as it is a legally established body set up to see an orderly development of the palm oil industry. None of the other oilseed crops in the developed or developing countries has such a supervisory body to ensure the viability or sustainability of the targeted commodity.

Under the country's many laws impacting the operations of the palm oil industry, it is possible to claim that palm oil is produced more viably than any other oilseed crop and through the close similarities in meaning between viability and sustainability, palm oil is much more sustainably produced as compared to other oilseed crops produced worldwide.

One can still pose the theoretical question, "Is Malaysian palm oil sustainably produced?”. Given the laws and regulations long put in place and the agencies created to supervise the palm oil industry, it is unfair to claim that palm oil is 'not sustainable'. After all, there is no certifying body to prove that it is 'not sustainable'.

If "not sustainable" is not the answer, the lawyers' yes or no approach will tell us that palm oil production is "sustainable" even though some moderate NGOs often advise me to use the term "more sustainable".

To prove palm oil’s sustainability, the producers willingly volunteered to agree to form the RSPO so that through its vetting process, sustainable palm oil can be certified. It is rather obvious that instead of applauding the companies who pass the stringent test of once again proving sustainability, NGOs who are not members of RSPO pick successful RSPO members as targets and prepare extensive and inaccurate reports to inform the world that the certificates awarded to the successful RSPO members are defective. The NGOs who are members of the RSPO seem contented that their counterparts outside the RSPO are insulting them by not recognising the good efforts that they have put in to bring RSPO thus far in introducing sustainable certification for palm oil. Ironically, those who are not successful in getting the RSPO certification are not targeted.

Other competing oilseed crops planted in the EU or the USA, the motherland countries of some of these 'anti-developing countries' NGOs, are similarly not targeted to prove certification for sustainability.

Certification is costly and time consuming. In the auditing process for RSPO, the oil palm farmers have to verify each boundary stone to prove that the land is legitimately theirs. They have to account for all the weedicide empty bottles to ensure safety procedures are followed. How many thousands of boundary stones will the palm oil farmers need to show to the auditors (who fly all the way from Europe) to fulfill the certification criteria to qualify them to obtain the RSPO certification whereas their counterparts in rest of the world need not face such a hassle.

Fishing in Oil Palm Plantation

We have 150,000 small farmers and about 3,000 estates covering 4.5 million hectares of oil palm plantations. These oil palm farmers have been farming their land for generations, and their legitimate agricultural land that they own have nothing to do with deforestation. These are indeed agricultural land.

Some of the EU NGOs however are not happy with the situation, and have offered to teach and train the oil palm farmers how to grow their oil palm sustainably as advertised in their websites. (I bet that some of the EU NGOs sitting in their posh London or Amsterdam offices would not recognise the three types of palm trees popularly planted in Malaysia, let alone teach the Malaysian farmers a course on sustainable planting of oil palm). How do you teach and train when you have no sound knowledge on a tropical crop ? It takes years for planters to learn all the parameters before they can claim to be experts.

By organising threatening demonstrations and anti palm oil campaigns in the EU, the NGOs have put considerable fear in politicians who then to try to find ways to comply with sustainability certification if palm oil were to be used as biofuel in the EU, for e.g. as recently seen in Germany. Why discriminate and require certification on the agricultural products of our farmers when the products of their farmers do not require such certification. Oil palm was cultivated in Malaysia long before soyabean was planted in Europe.

Others too are escaping the scrutiny of the anti palm oil NGOs whether by intention or otherwise. By focusing on palm oil biofuel these NGOs allow the petroleum companies to continue to pollute and emit green house gases by promoting the continued use of fossil fuel. Last year, petroleum companies made huge profits (in the billions of dollars) but none seemed to be invested in reforesting Europe or USA where deforestation had occurred, and the GHG which has been released from past over-deforestation remains in the atmosphere. The only way to remove the released GHG is to reforest the EU which has over developed its land; up to 70 % of the total land area is used for agriculture.

Let’s face it, the real culprits are the fossil fuels. Maybe the NGOs are doing the fossil fuel industry a great service by diverting attention towards deforestation. Every 15 cars in their lifetime emit GHG equivalent to the deforestation of one hectare of forest. The EU introduces 15 million new cars every year and this will emit GHG equivalent to 1.5 million hectares of deforestation. In ten years the deforestation equivalent of EU’s new car population is estimated at 15 million hectares.

Both the oil palm planted areas of Malaysia and Indonesia which have been in business for almost 100 years are only about 11 million hectares and these are part of their agriculture land. Even then, oil palm occupies less than 5% of Indonesia’s land area. The oil palm industry allows the country to be self sufficient in food oil and to export the surplus to other countries to earn some US$17 billion which helps overcome poverty in the country.

Let’s get the facts right. Indonesia still maintains more than 50% of its land area under permanent forest. Malaysia allocates 12% of its land area for growing oil palm which takes up 66 % of its agricultural area and maintains more than 50% of its land area under permanent forest.

The NGOs often call for developing countries to stop developing our agriculture and preserve our forests. They do not care whether we have enough food produced for the country, or generate sufficient revenue to attain a decent standard of living. They want a moratorium on deforestation which means a stop to agriculture because in the tropics, whatever is not allocated as agricultural land for now will look like forest when viewed from a satellite picture which will be the key tool used for monitoring deforestation.

Because of the potential contention of what constitutes degraded land that can be rehabilitated by planting suitable crops such as oil palm or rubber, many developing countries would be reluctant to agree on a blanket deforestation policy. They will probably agree if forests that are classified as permanent and sustainably managed forests, national parks, and animal sanctuaries are declared off limits to agricultural development. In Malaysia such forests are already gazetted as permanent forests . Even if it has to be used for some other purposes, the law requires an equivalent area of replacement to be provided.

Some NGOs like to quote me as making an over claim on the sustainability issue. As a former head of the MPOB, my job was to prosecute lawbreakers in the oil palm industry by issuing them compounds or taking them to court so that their offences are dealt with appropriately.

In any community, industry or country, there are always lawbreakers who do not follow the rules. I am sure it happens also in the countries where the NGOs reside. If the public or NGOs provide evidence of the lawbreakers misdeeds, authorities like MPOB will immediately take action.

In an industry that is governed by laws, it is a welcome move if the NGOs are willing and able to submit evidence of wrong doing committed in the oil palm industry. A report by an NGO on actions taken by the Sabah Forestry Department forest land encroachment is proof that the law is being enforced. If the forest land is encroached upon by illegal immigrant workers who think that shifting cultivation is still tolerated, the relevant authorities will act to enforce the law, and such plantation will be non sustainable. That will imply that the legitimate oil palm plantations on agricultural land are sustainable.