Tue, Mar 05, 2019 page10

• Malaysia to halt expansion of all palm oil plantations

  ‘ACCUSATIONS’: An EU bill that classifies palm oil as unsustainable is ‘scientifically flawed’ and ignores the effects of other vegetable oils, an industry council said

  • Bloomberg
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  Malaysia plans to halt all expansion of oil palm plantations this year as it seeks to dispel the oil’s reputation as a driver of deforestation.

  The world’s second-largest producer will cap the area at about 6 million hectares, Malaysian Minister of Primary Industries Teresa Kok said in an interview on Friday.

  That is up from 5.85 million hectares at the end of last year, which would give some leeway to growers who are in the middle of replanting or who have already bought land, she said.

  The move comes as producers intensify their fight against simmering anti-palm oil sentiment and allegations that the crop destroys tropical rainforests that are home to endangered animals such as the orangutans.

  While the negative sentiment against palm oil has existed for decades, it worsened when growers expanded plantations in Indonesia and Malaysia.

  “Now we are responding to a lot of accusations and rectifying it,” Kok said.

  The proposal, which is to be put to the Cabinet for discussion this month, would require commitment and cooperation from state governments as certain land issues are under their jurisdiction, Kok said at her office in Putrajaya.

  Malaysia would focus on boosting productivity and yields of existing palm trees, she said.

  The EU Commission last month submitted a delegated act that classifies palm oil from large plantations as unsustainable and suggests that the oil be excluded from the bloc’s biofuels target.

  That could hurt top producers in Indonesia and Malaysia that are struggling to improve demand for the controversial oil used in everything from soap to chocolate.

  Malaysia has called the draft law discriminatory and potentially detrimental toward palm oil.

  The country is gearing up for a long battle as there is risk that the “end game” in EU is to completely ban palm oil, Malaysian Minister of Foreign Affairs Saifuddin Abdullah said last month.

  The bill is open for comment until Friday.

  The world’s largest growers are joining forces. The Council of Palm Oil Producing Countries, whose members Indonesia, Malaysia and Colombia produce about 90 percent of global supply, are to jointly challenge the bill through bilateral consultations, as well as through the WTO and the ASEAN.

  The council said that the law uses a “scientifically flawed” concept that targets palm oil and “makes no attempt to include broader environmental concerns” linked to other vegetable oils.

  Malaysia would send a team of scientists to challenge the methodology that shaped the draft law, Kok said.

  Kok is also looking to gather support at home.

  She has launched a year-long “Love My Palm Oil” campaign to support the industry, roped in the private sector to place billboards promoting palm oil and encouraged tour guides to bring tourists to plantations.

  Malaysia is set to have all of its palm estates certified as sustainable by the end of this year, with the government helping smallholders to do so.

  It is all about working together and spreading the word from home, Kok said.

  “It’s no more a one-woman or one-ministry show,” she said. “The nation should come together.”
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