End product news & views (update 3a): A junk food free world? Italy campaign against palm oil in food products.

22 December: A junk food free world? Italy campaign against palm oil in food products.

Hold the Cookies, Save the Climate - Everyone knows meat is bad for the environment. But so is an ingredient commonly found in junk food. By Ruth DeFries; Imagine if eating packaged cookies and crackers were as socially unacceptable as smoking a cigarette. People would sneak to the balcony to tear open packages of Oreos. Travelers would slink into designated rooms to scarf down candy bars. “No junk food” signs would adorn the halls of public buildings. Waistlines, nutrition, and health care costs would all by improved by a junk food–free world. So would the climate, the rain forests, and the dwindling populations of wild orangutans in Southeast Asia...... The protests against palm oil have raised awareness about the damage that may be wrought by the world’s voracious appetite for cheap fat. They also bring up many thorny questions about the right path to a more equitable world, that has economic opportunities for all, and won’t destroy the planet in the process. Do the environmental costs of palm oil from Southeast Asia outweigh the damage from industrial farming of soybeans in the prairies of the Midwest? Should those countries with remaining stocks of rich, lush rain forests be obliged to forgo the benefits of developing their agriculture? With the push toward certification of sustainably produced palm oil, how can the millions of poor oil palm farmers afford to go through the expensive process to get certified? These knotty questions have no obvious answers. But one fact is clear. Whether it’s squeezed from soybeans or from the fruits of palm trees, oil in processed food is a losing proposition.... propositionhttp://www.slate.com/articles/technology/future_tense/2014/12/palm_tree_oil_and_the_environment_skip_the_cookies_to_fight_climate_change.html


A Comedian vs 14,000 Italian Jobs & 4 Million Small Farmers b IPPA, 15 December 2014
The latest anti-palm oil campaign (and anti-poor people) campaign to emerge from Fortress Europe has come from Beppe Grillo and his Movimento 5 Stelle, also known as M5S, an Italian political party (party in the literal sense, not political sense). M5S is calling for the outright banning of palm oil from food products in Italy.... People’s livelihoods are at stake....
http://palmoilfactchecker.org/2014/12/a-comedian-vs-14000-italian-jobs-4-million-small-farmers/

15 December: ‘Free-from’ campaigns are illegal or deceptive and also unnecessary as of 13 December 2014

In Trade Perspectives by FratiniVergano - European Lawyers, Issue No. 23 of 12 December 2014 on Mandatory declaration of specific vegetable oils in food as of 13 December 2014: ..... By making it compulsory that the oil origin be specified (so that a consumer can make an informed choice in the selection of food products), a mere look at the list of ingredients will tell consumers whether a product contains a specific vegetable oil or not. ‘Free-from’ campaigns directly on the products packaging should, therefore, be seen not only as illegal or deceptive (as argued above), but also unnecessary as of 13 December 2014, since any consumer will be able to tell what vegetable oil is present or not in any food product. There will be no need to use these dubious ‘free-from’ campaigns in order to ‘help’ consumers make informed choices. Food producers remain entitled to make positive claims about the presence of specific products on in their products, if they believe that such label has marketing value and will be appealing to consumers, but negative labels must be better regulated and not allowed, unless they are permitted nutrition claims under the NHCR.... The growing use of these damaging negative labels in countries like France and Belgium must be brought to an end.  Authorities and commercial operators need to closely scrutinise the market and challenge these anti-competitive practices, when they contravene EU and Member States’ laws. The expectation is that EU authorities and EU Member States, while they impose costly new rules on producers, also ensure that consumers are not misled by astute marketing techniques that have no informative agenda, but simply aim at denigrating certain vegetable oils in order to promote others or to convince consumers that what is ‘free’ from a certain oil is a better product....


12 December 2014 evening: EU labelling campaign wanted to encourage sustainability, but a poll of Guardian readers points to many wanting to avoid palm oil?

source: https://image-store.slidesharecdn.com/179a662a-44d4-4460-b47d-2f76b6828a77-original.jpeg

EU labelling changes force industry action on palm oil, a new law is predicted to benefit the sustainable palm oil industry, but the question is whether consumers will care; From Saturday, 500 million consumers in Europe will become aware that palm oil is in their food. The EU law on food information to consumers (otherwise known as FIC) means that food stuffs can no longer get away with hiding ingredients under generic titles. Now ingredients will have to be exactly what it says on the tin, and sustainable palm oil could be a major beneficiary.... The palm oil debate is funded by the Roundtable on Sustainable Palm Oil. All content is editorially independent except for pieces labelled advertisement feature. Find out more here. http://www.theguardian.com/sustainable-business/2014/dec/12/eu-labelling-changes-palm-oil-consumer-change

Will new EU food labelling rules change your purchasing decisions on palm oil?
Poll: will seeing palm oil in a product's ingredients list change your decision to buy it?
by Jenny Purt theguardian.com, Friday 12 December 2014 12.41 GMT
http://www.theguardian.com/sustainable-business/poll/eu-food-labelling-change-palm-oil-purchasing-decisions-poll; comment: Michelle Desilets 12 December 2014 1:03pm: The motivation for the campaign to clearly label the kind of oil used in products had a great deal to do with encouraging manufacturers to ensure that the palm oil they use is sustainably sourced. Perhaps the poll could have been improved with an option of something along the lines of "I will seek products that use palm oil and are certified sustainable."

source: Guardian poll, 12 Dec 2014, 11pm Singapore time; but number of respondents not indicated

12 December 2014: health & sustainability link, reformulate petition, Iran reduces palm oil, "palm oil free" illegal?

Palm oil: Health and sustainability are linked in consumers' minds by FoodNavigator.com  - ‎Dec 4, 2014‎; "Palm oil is subject to several consumer concerns - its sustainability and health impacts in particular - but these need to be addressed together rather than separately, according to the European Palm Oil Alliance (EPOA)...." http://www.foodnavigator.com/Market-Trends/Palm-oil-Health-and-sustainability-are-linked-in-consumers-minds

Petition to limit palm oil attracts more than 50000 signatures; FoodNavigator.com  - ‎Dec 2, 2014‎  The petition, published on Change.org , says it opposes the use of palm oil on ethical, environmental and health grounds, and invites companies to reformulate using other non-hydrogenated vegetable oils or butter.

Iran decreases palm oil imports due to health concerns by Trend.az  - ‎Dec 9, 2014‎; "Iran has decreased the importation of palm oil due to health concerns, ISNA news agency reported on Dec. 9. The country imported 7.415 million metric tons of palm oil in the first eight months of the current Iranian calendar year (March 21-November 21 ..." http://en.trend.az/iran/business/2341891.html

'Palm oil free' products could face legal challenge, say lawyers by FoodNavigator.com  - ‎Dec 3, 2014‎ 
“However, in the absence of evidence that a specific oil represents a risk to consumer health, inclusion of “no palm oil” claim front of label unjustly singles palm oil out and places emphasis on the absence of palm oil in the product in a manner that ..." http://www.foodnavigator.com/Policy/Palm-oil-free-products-could-face-legal-challenge-say-lawyers

Nash: Belgium's label against palm oil illegal by Yahoo Malaysia News  - ‎Dec 3, 2014‎ 
“We acknowledge this FIC regulation, but we reject the 'No Palm Oil' defamatory connotation in front-of-pack labels,” said Zulkifli..." https://my.news.yahoo.com/nash-belgium-label-against-palm-152732843.html


10 December: EU FIC regulation boost sustainability but not mass reformulation

"Food Information for Consumers (FIC) regulation is due to come into force across the EU on December 13, and with its requirement to identify specific vegetable oils on ingredient lists.... The palm oil industry had feared that the rules would lead to mass reformulation, as manufacturers responded to perceived consumer concerns about palm oil's sustainability and health effects. However this has not happened, the EPOA (European Palm Oil Alliance) says..."There has sure been a stagnation of palm oil use over the past three or four years, but it's not been the big drop that some had feared" (EPOA's Margaret Logman) said..... (FEDOIL's Nathalie Lecocq) pointed out that oils have a specific function that can't always be replicated. "It would be a mistake to think we need to get rid of one oil because it is imported," she said.... some palm oil producers have also said that the FIC regulations have spurred manufacturers to source more sustainable palm oil...."
http://www.foodnavigator.com/Policy/FIC-vegetable-oil-labelling-rules-have-not-led-to-mass-reformulation-says-EPOA

RSPO Roundtable (RT12) 2014 (update 6): WWF welcomes RSPO move to expel and suspend members over annual reporting

RSPO hosted its 12th Roundtable annual meeting, marking 10 years since its creation as a Swiss entity. The RSPO sponsors in The Guardian of the UK -  "The palm oil debate is funded by the Roundtable on Sustainable Palm Oil. All content is editorially independent except for pieces labeled advertisement feature..."  (see links below). On the agenda were numerous topics. - listed here: http://rt12.rspo.org/c/rt12-programme/.

10 December 2014:

Thanks to a reader for pointing this out. RSPO has faced some issues in getting all its members to report on their annual data and progress. Some also ask about incomplete reporting.

Palm oil sustainability body to expel non-compliant companies, Posted on 21 November 2014  |    Kuala Lumpur, Malaysia:  "WWF has welcomed a move by the Roundtable for Sustainable Palm Oil (RSPO) to expel member companies that have failed to keep even their most basic promises to the sustainability body.... At the organizations’ 12th annual meeting, the Chair of the RSPO Board announced that member companies who have ignored annual reporting requirements for the last three years will be expelled within six weeks and those failing to report over two years will be suspended.  Member companies are required to report annually on progress towards time bound plans to reach sustainability milestones.... This is a sign that the RSPO has finally lost its patience with those members who have been bringing the organization into disrepute by failing to make commitments, never mind keep them,” said Adam Harrison, WWF’s lead on its work on palm oil.... http://wwf.panda.org/wwf_news/?233592/Palm-oil-sustainability-body-to-expel-non-compliant-companies

26 November 2014: what was missing from RSPO RT12 - post-event notes

Thank you to readers for pointing these out....

The Big Question: Will RSPO Officially Condemn 'No Palm Oil' Labels at RT12? 18 November, 2014;  http://palmoilfactchecker.org/2014/11/the-big-question-will-rspo-officially-condemn-no-palm-oil-labels-at-rt12/

Stop ‘no palm oil’ labelling; Updated: Sunday November 23, 2014 MYT 8:15:44 PM
http://www.thestar.com.my/Opinion/Letters/2014/11/22/stop-no-palm-oil-labelling/
 have not seen enough support for Malaysian small farmers from the Sustainable Alliances, especially in regard to the “No Palm Oil” labels. Whilst denigrating palm oil with these labels, the companies that use them such as Galler and Delhaize are risking the trade relationship between Belgium and Malaysia. They could also harm the image of Belgium in Malaysia. In my opinion, Belgians must respect Malaysian products if they want to preserve a good trading relationship at a time when we all need it. It is now a question of how Malaysia will choose to defend their small farmers against these attacks...."

NGO reactions to RSPO RT12:
http://www.ran.org/palm_oil_where_to_from_here/#comment_content
 

20 November 2014: The General Assembly is always the exciting part after the RSPO Roundtable and this proved to be so to the end. The resolution to promote traceability within certification was a fascinating shift with possible deep impact on preferences and balances. Keep an eye on this!

Note: traceable GreenPalm, a winner?

UNEP-RSPO collaboration in the news:

Great apes facing 'direct threat' from palm oil farming; Updated: Thursday November 20, 2014 MYT 6:21:27 PM; "KUALA LUMPUR: The destruction of rainforests in Southeast Asia and increasingly in Africa to make way for palm oil cultivation is a "direct threat" to the survival of great apes such as the orangutan, environmentalists warned Thursday.... They said tropical forests were continuing to tumble at a rapid rate, with palm plantations a key driver, despite a decade-old drive by the industry's Roundtable on Sustainable Palm Oil (RSPO) to encourage sustainable cultivation.... The concerns were voiced on the sidelines of the annual meeting of the RSPO, held this year in Malaysia and which concluded Thursday.... "Orangutan and ape habitats are being destroyed," said Doug Cress, Kenya-based programme coordinator with the UN Environment Programme's great ape protection campaign.
........The problem is most acute in leading palm oil producers Malaysia and Indonesia, which account for 85 percent of world production, conference participants said. But it is now also a looming threat in even more poorly regulated Africa, where the industry is set to "explode", according to Cress.... Harrison cited as an example Tesso-Nilo National Park in Indonesia, which was set aside as a preserve for tiger and elephant habitats. "Half of the national park was cleared for palm oil by small-holders. The small-holders then sold the fruits to RSPO members. This is unacceptable," he said.
Harrison said if deforestation continued at current rates, tiger and elephant populations in Southeast Asia could be wiped out within in a decade. -AFP..." http://www.thestar.com.my/News/Regional/2014/11/20/Great-apes-facing-direct-threat-from-palm-oil-farming/

 

19 November 2014: the smallholder inclusivity problem, more on UNEP deal, Unilever pledge, Cargill status

 

Good chat with rep from Better Cotton Initiative (cousin of RSPO in the WWF Roundtables stable). This Roundtable was explicitly designed to be highly inclusive of smallholders; the converse of RSPO as many specialists note its big corporation focus (about half percent of RSPO certified output is from smallholders). In four years BCI has a 4 percent global production market share and target 33 percent by 2020. It is not designed to generate a premium but large buyers pay a volume based fee to support ancillary services to support cotton farmers yield improvement and cost efficiency. The agriculture outreach was initially funded by donors. BCI looks to adapt its standard for corporate cotton farms.

 

RSPO reports $4 million funds to develop smallholder certification. Many NGOs are looking to assist on this. Smallholders represent at mid-2014 some 0.6 percent (with just over 14,100 hectares) of the total RSPO certified area. RSPO is in its tenth year of operation. Keep an eye on this!

News links:

Sustainable palm oil enters the UN environmental agenda by Vincent Lingga, The Jakarta Post, Kuala Lumpur | Business | Wed, November 19 2014, 12:16 PM; "The development program for socially, environmentally and economically sustainable palm oil is poised to accelerate following the signing of a cooperation agreement between the United Nations Environment Programme (UNEP) and the Roundtable on Sustainable Palm Oil (RSPO)... UNEP senior executive Douglas Cress noted on Wednesday that cooperation should be a model for the sustainable development of other farm commodities, as the RSPO engaged all representatives from the whole spectrum of the palm oil supply-chain.... He added that the UNEP-RSPO engagement aimed to raise global awareness about sustainable palm oil and generate market demand for an important commodity that has the potential to play a key role in preserving the earth’s biodiversity...."
http://www.thejakartapost.com/news/2014/11/19/sustainable-palm-oil-enters-un-environmental-agenda.html

Unilever to Use Only Sustainable Palm Oil in European Foods by End of Year
Company Pledges to Use Only Traceable, Sustainable Palm Oil World-Wide by 2020
http://online.wsj.com/articles/unilever-to-use-only-sustainable-palm-oil-in-european-foods-by-end-of-year-1416402241

Cargill Publishes First Palm Oil Progress; Cargill today released its first progress report on sustainable palm oil. The report lays out the company’s action plan to achieve a fully sustainable supply chain. "Sustainability has long been part of our palm ... http://wc4.net/t?r=1453&c=3870773&l=36989&ctl=4C3B20C:FCB2C9F06EB032236D766D156048A097F0CE68744B36A4D6&

 

18 November 2014: Food labeling context, UNEP deal and RSPO RT12 in the news

 

RT12 to look at preparing for sustainability and what comes next by Bernama. Posted on November 10, 2014, Monday; KUALA LUMPUR: "The 12th Roundtable Meeting on Sustainable Palm Oil (RT12), organised by the Roundtable on Sustainable Palm Oil (RSPO), will look at trends pointing towards the evolutionary path of sustainability and how to prepare for it... The annual meeting, set to take centre stage here on November 17 to 20, was previously held in Medan, Indonesia.... RSPO Secretary General, Darrel Webber, said the RT12, themed ‘Sustainability: What’s Next?’, would discuss current challenges faced by members and stakeholders such as multiplicity of standards and constant change in demand from the market.... “This year’s meeting will consist of four types of formats – small intense group sessions, plenary sessions, panel discussions as well as a more interactive session called World Cafe, where we go around the table and ask questions... The highlight of this year’s event is a keynote address and panel discussion led by award-winning scientist, environmentalist and co-founder of the David Suzuki Foundation, Dr David Suzuki...RSPO now have over 1,791 members from from 72 countries including Germany, UK, the Netherlands, Malaysia and Indonesia. — Bernama..."  http://www.theborneopost.com/2014/11/10/rt12-to-look-at-preparing-for-sustainability-and-what-comes-next/#ixzz3JQHGzvM2
 

UN to promote RSPO-certified palm oil as conservation solution mongabay.com November 14, 2014; "The United Nations Environment Programme (UNEP) has signed an agreement with the Roundtable on Sustainable Palm Oil (RSPO) to promote eco-certified palm oil as part of the broader effort to conserve biodiversity.... The move, announced Thursday, commits UNEP and RSPO to work together to uphold standards for certified palm oil and encourage uptake in global markets. UNEP says RSPO-certified palm oil could contribute toward UN development goals...." http://news.mongabay.com/2014/1114-unep-touts-greener-palm-oil.html#sthash.UZ2BfqWc.dpuf
 

Borneo's industry-environment balancing act - Deforestation in Indonesia has led some to demand tighter standards for the multi-billion-dollar industry. Kate Mayberry  Last updated: 17 Nov 2014 06:30; "Kuala Lumpur, Malaysia - The island of Borneo is on the front line of an ongoing struggle to find a balance between the environment and commerce.... At one time, Sanchez was hopeful that the Roundtable for Sustainable Palm Oil (RSPO) would succeed in its goal to make plantation companies more responsible and slow the pace of deforestation. But orang-utans continue to be driven from their treetop homes.... Still, some industry insiders argue RSPO is dominated by Western NGOs and big buyers, and its stricter benchmarks are too demanding and expensive for smaller producers to implement... The RSPO's not just about a standard," Webber said. "We are about transparency. We add credibility. We are an avenue to seek recourse. We have global maps of our certified members that you can see online www.rspo.org now, check where they are, whether they've deforested in the past.... "We do terminate and we do suspend," he said. "But we try our best to mediate. Conflicts do not stop if we terminate a member. Conflicts will stop if a member operates within our framework and starts engaging with affected parties..... No other commodity, I think, has done the same. It's only palm oil that's done it and it's palm oil through the RSPO that's done it," he added...." http://www.aljazeera.com/indepth/features/2014/11/borneo-industry-environment-balancing-act-201411167578572422.html
 

Campaign for sustainable palm oil becomes more vigorous by Vincent Lingga, The Jakarta Post, Kuala Lumpur | Business | Tue, November 18 2014, 10:50 AM; "Some 800 delegates from 30 countries began a three-day meeting here on Tuesday to discuss the latest developments in the campaign for socially, economically and environmentally sustainable palm oil... The discussions within the 12th annual conference of The Roundtable on Sustainable Palm Oil (RSPO) are taking place against the backdrop of some positive developments as industries in the UK, France, Germany, Sweden, Netherlands, Norway, Denmark and Belgium have all pledged to buy 100 percent RSPO-certified palm oil by 2015.... This pledge will coincide with Europe leading up to the entry into force of the new food labelling regulation at the end of this year, when palm and other vegetable oils will appear on product packs, RSPO Secretary General Darrel Webber noted.... The principles of sustainable management promoted and assessed under the schemes of RSPO, ISPO (Indonesia) and MSPO (Malaysia) for their respective certification are by and large similar: covering such elements as transparency, legal and regulatory compliance, best production practices, environmental responsibility and commitments to local community development, human rights, land rights etc....  Webber said efforts are now underway to develop synergy between the certification programs because their primary goal is the same: to develop palm oil as a major source of vegetable oil in socially, economically and environmentally sustainabe practices..." http://www.thejakartapost.com/news/2014/11/18/campaign-sustainable-palm-oil-becomes-more-vigorous.html
 

12 November 2014: RSPO sponsored palm oil debate in The Guardian:

From rainforest to your cupboard: the real story of palm oil - interactive by Laura Paddison, Jenny Purt, Josephine Moulds, Oliver Balch and Yosef Riadi and Ulet Ifansasti in Riau province, Indonesia
Monday 10 November 2014 13.00 GMT; "You wash with it, you brush with it, you toast it, it’s in 50% of what you buy – but what’s the real story of palm oil? Use the interactive below to trace the journey of palm oil from the rainforest through to your kitchen cupboard... Does the story of palm oil affect your buying habits?... Put your palm oil questions to a panel of experts in our online live chat.. Produced for the Guardian by Nice & Serious..." http://www.theguardian.com/sustainable-business/ng-interactive/2014/nov/10/palm-oil-rainforest-cupboard-interactive
 

Palm oil: the secret in your shopping basket - have your say; "Implicated in deforestation, the destruction of natural habitats and climate change, the ubiquitous oil is in 50% of what many buy - from shampoo and lipstick to bread and margarine - but do consumers care?... But where does this deeply controversial yet hidden ingredient come from? Our interactive tracks the journey of palm oil from the rainforests of Indonesia, Malaysia, and increasingly Latin America and Africa, to your kitchen cupboard.... It explores the complicated story of a commodity which has undeniably negative effects. Millions of hectares of virgin rainforest have been cleared in some of the world’s most biodiverse countries to make way for palm oil plantations. In the process people have been displaced, livelihoods undermined, endangered animals such as orangutans have lost their natural habitat and sometimes their lives, and the draining of peatland has released millions of tonnes of CO2 into the atmosphere exacerbating climate change...." http://www.theguardian.com/sustainable-business/2014/nov/10/palm-oil-secret-in-your-shopping-basket-have-your-say

Obesity and the food industry (update 1a): "The men who made us fat" - UK documentary

So what really causes us to be fat? Has the food industry led us into addiction?


7 December 2014: The Truth about Fat in Time

The Truth About Fat by Michael Lester @moikl, June 12, 2014; "When you want to lose weight or get healthy, what is the first thing you would normally cut from your diet? If you said fat, you’re not alone.... For years, the advice from the USDA has been to reduce the level of saturated fat in your diet, in order to lower your overall cholesterol. However, a new meta-analysis published in the Annals of Internal Medicine has thrown that whole approach in to question.... The removal of fats from our diet has led to an increase in consumption of carbohydrates and processed low-fat alternatives, which has contributed to record levels of diabetes and obesity.... When you consider that most low-fat or non-fat products are laden with salts, sugars and preservatives, continuing to seek out fat-free alternatives could be doing you more harm than good...." http://time.com/2861540/fat-and-carbs-diet-guidelines/


7 December 2014: "The men who made us fat" - UK documentary

At a dinner party last night, this documentary was pointed out to me. Another guest noted that she had concluded from reading: 80% of being overweight is due to what we eat and 20% to exercise. Have we been mistakenly led by the food-exercise industry into upping our consumption of highly processed foods, supplements and exercise products? Is it just all about calorie control and getting back to basic food (and less sugar and carbohydrates)?

UK made documentary. The documentary maker says: On the obesity disease. Those responsible for a revolution in our eating habits. Decisions made behind closed doors changed food into an addiction. How business changed the shape of the nation. How the food industry choreographs temptation. Those who turned eating food into an epidemic....  Introduction of dietary guidelines: food industry willing to concede on fat, not sugar. Invention of low fat food, sold as better for you. Turning the attack as a business opportunity. Fat was replaced with sugar. Low fat doesn't mean it's not fattening. Snackwells was a marketing triumph.....The increase in portion size...Overconsumption is killing us...  ; BBC Two - The Men Who Made Us Fat - http://www.bbc.co.uk/programmes/b01k0fs0; youtube vids here: https://www.youtube.com/watch?annotation_id=annotation_810093&feature=iv&index=1&list=PLA0E2B2461B536A26&src_vid=6UaUQ0H8crQ&v=iE-H__aIEFE


Rewind TV: The Men Who Made Us Fat; Britain in a Day; Dead Boss by Phil Hogan, Sunday 17 June 2012 00.05 BST; "Jacques Peretti asked why we have become the size of Fiat Puntos....
Watching Jacques Peretti's interesting The Men Who Made Us Fat, it struck me that filming a documentary about obesity in Britain must be much easier than 40 years ago, when being huge was a rarer novelty than having a wooden leg. Today, with a quarter of the population officially the size of a Fiat Punto, it seems all you have to do is put a camera in the high street and wait for someone – perhaps a grazing couple – to heave into view. But this wasn't about finger-pointing. Under an MRI scanner, it turned out that even Peretti himself – a man of no outlandish width – was carrying four to five litres of internal lard. His kidneys, the doctor said, were "swimming" in it. "Is that normal?" Peretti asked, hopefully. It wasn't. It was twice that of a normal fit person (if a fit person can still be described as normal). It seemed that Peretti is what scientists call a Tofi – thin on the outside, fat on the inside. Was no one safe?.... Historically, Britain's problem (we have put on three stone since the 60s) is down to our genetic heritage as hunter-gatherers. We can't help it. We are cavemen with supermarket loyalty cards. In more recent times, though, it has been possible to blame the Americans (ahead of the game in so many ways) for introducing industrial-scale farming in the 70s. Flooding itself with cheap food seemed a good idea at the time and produced the added bonus (or, as we now see it, unintended consequence) of vast surpluses of corn, which in turn led to the miracle food of high-fructose corn syrup.... It was what the American sweet tooth had been aching for. A third cheaper than sugar, corn syrup was soon in everything on the national menu, from ketchup to burger buns to processed meats to pizza toppings. But most of all it was in fizzy drinks, today the single biggest source of calories in the US. In movie theatres and sports arenas, "cups" grew to the point where it is now thought perfectly unremarkable to stagger to your seat with the equivalent of a window-cleaner's bucket. How did everyone get so thirsty? The answer was that corn syrup was not only cheaper than sugar, it was also sweeter. And food manufacturers give generously..... Other opinions were available, with grinning spokespeople from the food companies telling us that having sugar in everything was a healthy part of a balanced diet, which I believe is what they used to say about cigarettes. As much as anything, this film (the first of three) was the story of corporate chicanery, political surrender and cowed scientists whupped into silence. When New York mayor Michael Bloomberg recently announced plans to restrict sales of supersize beverages, it may have looked as if he'd just woken from a 30-year sleep ("Gosh, where did all these massive people spring from?"). But it highlighted the success of powerful commercial interests down the decades in keeping the lid on the problem with sugar, while diverting concerns over heart disease uncritically towards saturated fats. In the 80s, "healthy" snacks – yoghurts, spreads and biscuits, low in fat but packed with the natural goodness of sugar – were all the rage. It took us a long time to find out why even joggers were getting red in the face for nothing....." http://www.theguardian.com/tv-and-radio/2012/jun/17/men-made-us-fat-review

Conference season (update 6): downstream merchandising for sustainable palm oil

6 December 2014: downstream merchandising issues for sustainable palm oil

On Wednesday morning I had a long 1 hour session to present on "Downstream merchandising of palm oil - adjusting for sustainability" with a Q&A after. Thanks to Trueventus for inviting LMC International. 

I presented on various key statistics for downstream example the oddity of number of trademarks on sustainable palm oil versus number of products being launched with the troubling "palm oil free" label. 

One palm oil merchandiser (some months ago) pointed out to me that certification to use a trademark to highlight the presence of palm oil is not what many manufacturers want to do. They would rather remain silent on the issue. This may explain the above factoid. Because of this apparent shyness, the logic is that a (presumably cheaper) traceability program that is more inclusive of the supply chain is a good alternative as it may be that the need is for a sort of insurance on the supply chain and not marketing publicity. Let's see how the marketing on sustainability / traceability evolves on this.

Downstream players also need to pay attention to their upstream sourcing strategies as traceability both within and outside certification points to a palm oil mill risk rating system.

29 November 2014: checking out Indonesia snack foods and sauces (post GAPKI)

Post conference, I hit the super market next to the conference venue and stocked up on Indonesia snack foods (instant noodles with a wonderful range of local regional tastes; flavoured chips / crisps from tapioca - spicy ones with lime / lime leaves especially caught the eye e.g. keripik singkong balado dengan daun jeruk) and ready mix sauces for Indonesia favourites like soto ayam, sop buntut, opor ayam and more. Indonesia domestic consumption of palm oil is very big, given the country's large population. However, I agree with a friend that the supermarket aisles in Thailand may have an even larger range of domestic processed and ready foods.

Shopping basket of Indonesia processed snacks and sauces

.

29 November 2014: Day 2 at GAPKI conference, Bandung

Day 2, I was the first presentation of the day at the morning session in the technology grouping. However, while sustainability may be a technical and/or CSR issue, I focused on the commercial and strategic business issues relating to it.

At technology session

Price outlook speech

This website was pointed out to be for Indonesia palm oil information: http://www.sawit-center.com


28 November 2014: At GAPKI conference, Bandung

Day 1 was busy with meetings. President Jokowi unable to attend after all. It's a huge crowd here. Good to see industry friends and meet more.

 

I was here two years ago (venue was Bali), speaking on sustainability and I'm speaking on the same topic early this morning, with some nice data courtesy of work at LMC International. It's a big crowd here and its one of the must-go events of the palm oil calendar (with the highest production values and effort).

At GAPKI's Bandung conference this afternoon, Dr James Fry of LMC International (yes, where I work) will be talking about the energy sector prices in relation to palm oil prices. Energy sector cost of production indicators will also be referred to. That will be worth checking out.
Oil price news (update 5): OPEC keeps production up and oil prices drop, http://khorreports-palmoil.blogspot.com/2014/10/oil-price-news-its-fallen-from-105-110.html

at the GAPKI gala dinner

at the GAPKI opening on Day 1

View of Bandung

 

  

26 November 2014: Post RSPO RT 12 and ICIS Asian Surfactants

These were two useful events. Papers not freely downloadable though.

Our summary of RSPO RT12 here:
http://khorreports-palmoil.blogspot.com/2014/11/rspo-roundtable-rt12-2014-is-around.html and also search "RT12" in this site.


12 November 2014: MPOC POTS KL 2014 download link

Palm Oil Trade Fair and Seminar (POTS) Kuala Lumpur 2014 - Download Presentation

http://mpoc.org.my/Palm_Oil_Trade_Fair_and_Seminar_(POTS)_Kuala_Lumpur_2014_-_Download_Presentation.aspx


5 November 2014: At OFIC KL 2014 conference.

MOSTA is the key organiser.  OFI Congress Programme - organised by MOSTA; http://www.ofievents.com/asia/ofic. Awaiting downloadable presentation.

 

This is AOCS speaker on consumer attitudes and a nice infographic on GMO.

 

RSPO RT12: at the exhibit - online information (update 1)

21 November 2014: ZSL rating of palm oil companies

Ranking the world's best - and worst - palm oil companies in terms of sustainability by  mongabay.com; November 20, 2014; http://news.mongabay.com/2014/1120-palm-oil-sustainability-rankings.html#sthash.GU8j77hn.dpuf

 

18 November 2014: WRI's Global Forest Watch

 

We stopped by the exhibition stand of World Resources Institute. They have good online data mapping info to show on issues related to palm oil and environmental issues such as deforestation, fire and peat.

 

 see more at: commodities.globalforestwatch.org

 

Here's some excerpts from write-up by Mongabay.com on deforestation and transparency:

 



Surprising reasons to be optimistic about saving forests by Rhett A. Butler, mongabay.com

November 14, 2014; Note: this is the first draft of a commentary I submitted to Yale Environment 360 last month. A final first-person version is available at A Conservationist Sees Signs of Hope for World’s Rainforests; "....Tropical forest loss has remained at stubbornly high since the 1990s, declining from an average of 11.3 million hectares during the decade to roughly 9.3 million hectares per year between 2009 and 2012. Ranking at the top during both periods were the usual suspects: Brazil and Indonesia, both of which have extensive forest cover and surging agribusiness sectors....  But hidden in these high level numbers is a trend that holds important implications for efforts to conserve the world's forests. Today forests are more often cleared to produce commodities for consumption in urban markets and for trade, rather than for subsistence by poor slash-and-burn farmers. In other words, the tropics are shifting from poverty-driven to profit-driven deforestation.
Most companies however don't move on their own—they are pushed, often by consumer-focused campaigns led by environmental groups, which leverage corporations’ sensitivity to criticism. The results since 2006 have been nothing short of astounding: dozens of the world's largest buyers and sellers of soy, palm oil, cattle, and wood pulp have established policies committing them to excluding deforestation—and social conflict—from their supply chains. The biggest coup came last month when Cargill, which sells $135 billion worth of commodities a year, committed to zero deforestation across all its supply chains.... At the highest level, satellite imagery is widely available and is increasingly incorporated into monitoring systems. For example, the Brazilian government and the Roundtable on Sustainable Palm Oil (RSPO), an eco-certification body, are now requiring "shape files" that detail the coordinates of landholdings. This data can be used to determine compliance with environmental regulations and standards....  Satellite data is also integrated into platforms developed by civil society. The best example is Global Forest Watch, a project led by World Resources Institute that takes data from a range of sources and puts it on a map, providing unprecedented insight into the state of the world's forests, including tree cover gain and loss, forestry concessions, and fire history. Its integration of bi-monthly MODIS data provided by NASA enables the platform to serve as a near-real-time deforestation detection system, similar to that implemented by Brazil about the time its deforestation rate began to plunge dramatically in the mid-2000s. A study published last year by the Climate Policy Initiative attributed three-fifths of that decline to Brazil's monitoring system. Now that functionality is global...." http://news.mongabay.com/2014/1114-reasons-to-be-optimistic-about-rainforests.html#sthash.s4Jk57kp.dpuf

RSPO RT12: Eye on resolutions (update 3a) - at the General Assembly,declaration of mills and ACOP reporting; 5.15pm

Note: Declaration of mills is a biggie! This sets stage for differentiation within certification and alters balances. 

20 November 2014 - at the General Assembly, declaration of mills and ACOP reporting; 5.15pm

Resolution: Declaration of mills.  Proposed by Unilever. To promote transparency, buyer has right to know which palm oil mills (and plantations) and PK crushers RSPO certified product comes from. This would help market transformation. Mass balance would be struggle, Unilever has identified 1800 mills in its supply chain and added information is needed.

Arguments against: This seems to make sense for non-certified product. But within certified sphere, this would create tiers of mills. IP and SG could be used instead (but even in SG trader might not provide information on mills; need this information to build roadmaps to increase origins to targeted). If you know mills beforehand, you can choose from whom to buy and this is not fair to RSPO members (in off-market deals you can ask for declarations of plantations; without transparency, hard to know whom to work with). Agropalma can be IP entirely. By tracing everything how does this affect MB? What is intention going forward with this added information - rather than buying from scattered pool of certified segregated, then will support identified mills and companies in supply base?

Supporting argument: With PalmGHG, let buyer decide which mill to buy from, lower versus higher emissions. Those with lower emissions has better market potential and price than those with higher emissions. An incentive for growers improve. Univanich supports this that mills that have gone beyond RSPO requirements can be recognized when selling Greenpalm certificates.

Outcome: 96 for 84 against. This was a tighter vote. Resolution passed.


Resolution: Change ACOP reporting period to calendar year and improve the ACOP. Proposed by German retailers.  Alignment to calendar year for consistency and reduce work load for most. Improved ACOP can do with more guidance to improve its quality - better explanation and terminology clarification. It is useful to have macro information to understand market progress and tipping point indicators.

Arguments against: Current period is 2-3 months lag on reporting and for Roundtable would end up with older data than what is current and might miss fast developments. Separately, what to do with the non-ACOP reporting members? Tighten to end of April, to accommodate March deadline for certificates.

Outcome: 131 for. Resolution accepted.


20 November 2014 - at the General Assembly, allow wider usage of RSPO trademark by non-SCCS members; 4.25pm

Resolution: Allow members not required to obtain supply chain certification to use trademark on pack. Proposed by a group of retailers. Covers cases where retailer own brand products made by OEM do not get limited by manufacturer permitting their information on pack and/or retailer not to disclose supplier. Asks RSPO to look into easing this usage limitation.

Arguments against: Taskforce is already discussing this, so we do not need this resolution at this time (proposer replies wants to prioritise this, a non-controversial issue, and get wider feedback from members on this). Risk that this might limit the work of the Taskforce (especially if rejected) - it should be left free to look at all possibilities.

Outcome: Request Taskforce look into this, and withdraw resolution.


20 November 2014 - at the General Assembly, seeking non-membership (avoids reporting) for small users; 4.10pm

 

Resolution: Supermarket retailers are making a case for small users of palm oil not to require RSPO membership while still allowing them to be supply-chain certified. The retailers report that 80% of volume with top 20 suppliers - own brand products by retailers; the rest average 5 tonnes palm oil per annum. They note it takes weeks or months to join RSPO and have to report ACOP and  other problems. September 2014, 606 Supply Chain Associates use less than 500 metric tonnes. If they do not renew it is 3% of RSPO membership income budget. Reduce burden on those with complex supply chains and low volume usage - they find reporting complicated and using many other ingredients.

• Example 1: A supplier makes 6 x M&S cheesecakes - palm oil use = 13 tonnes/year. Palm oil footprint = 4.77 tonnes/year. Ingredients: cake margarine 0.99 tonnes/year, Arobake 1.82 tonnes/year, Digestive biscuit buttons 1.89 tonnes/year, paprika extract 0.01 t/year, Aeroplus duo 0.06 tonnes/year
• Example 2: Supplier makes 11 different Ahold products (palm oil use = 89 tonnes / year). Product palm oil footprint 0.8 tonnes/year. Palm oil content 5%, 10.5 grams of palm oil per box. Many ingredients including fractionated PKO in vanilla yoghurt coating, and PKO in peanut coating.

Arguments against: This would lose information from these producers who use less than 500 tonnes. At the other end, grower smallholders have to be members and also go through tedious works and efforts in the P&C. Not fair to run away from the system. Compromises spirit of equality and fairness. 5 tonnes for cheesecake is equivalent to 2 hectares is same as smallholder farmer; his commitment should be matched as small user. Worrying signal on lower transparency. Concern that the high 500 tonnes bar encompasses so many RSPO members.

 

Outcome: Resolution withdrawn and request Board to look into it. 

 

 

19 November 2014 - mill risk zoning, info disclosure, ACOP, non-members, suspension

 

Start of Day 2. First chat with a downstream specialist. Concern on resolution to include mill and more info in RSPO systems. This would shift from a binary certified vs non-certified status of mills to open up to more nuance of mill and supply base attributes and logically to perceived risk status (traffic light labelling of mills).
 

Others are also concerned on resolution with info disclosure on both eTrace and Greenpalm to mill and beyond. But at the other end of the supply chain with a resolution for non -members to become chain of custody certified; does this mean they would be part of ACOP (which has a resolution to be strengthened) or not (if not asymmetry of information might grow with a lot more required from the upstream).
 

Also a resolution to empower the Sec Gen to have power to suspend members on recommendation of the Board. Suspensions on the mind?

 

 

RSPO RT12: On social and labour issues

We did not attend at these sessions yesterday but thanks to a reader for highlighting key issues:

a) A new Labour Working Group is being set up. This is expected to work on ultimately getting company-level worker collective bargaining in place.

b) In social assessments a new approach will come about. We think this will come to inform Compensation Liability on social issues. Currently only monetary and non monetary values and methods are set for environmental concerns.

We'll update as we hear and learn more. Likely these will be hot implementation topics to come as they get fleshed out. As ever, the devil is in the administration details.

RSPO RT12: David Suzuki – on human overconsumption, the need for diversity, local knowledge of sustainability, risks of monoculture, over fixation on the market economy

Dr David Suzuki of UBC – on human overconsumption, the need for diversity, local knowledge of sustainability, risks of monoculture, over fixation on the market economy

Problem of consumption driven by appetite for stuff is amplifying our ecological footprint. Our numbers, technological power, consumptive power and global economy makes this the Anthropocene epoch – where our species undermines the support systems of the planet. Man’s brain invented an idea called “the future” – we are the only animal who can deliberately avoid danger and seek opportunity– this foresight allowed humans to survive and make us the planet’s dominant animal. We are the factor affecting the earth. We are heading down a dangerous path.

Half of Nobel Prize winning scientists alerted us and the press ignored it. The scientists warned that if not checked, our current practices puts at risk what we wish for the future of human society - fundamental changes are needed to avoid the collision – atmosphere, water, forest, species, over population etc. No more than one or a few decades for our chance to avert these threats will be lost.

Diversity is important. At level of the species there is diversity – genetic polymorphism. Species that thrive have inbuilt level of diversity, not homogeneity. This is part of life’s reliance. At ecosystem level, the more diversity, the more resilient it is. As conditions around the world change, there is a diverse pool.

Diversity should be built into everything we do. Sustain that diversity. Monoculture over large renders any group vulnerable to change – climate, new pests and disease. It is a great threat to long term resilience and survival of live.

For 95% of human existence, we were nomadic hunter gatherers. You are utterly dependent on nature for your survival and well-being. As humans spread across the planet, we brought extinction with it. Humans extinguished woolly mammoths and more, even with simple tools.

Indigenous knowledge is based on place – hard won practical experience accumulated over long periods of time. This is priceless knowledge of how to live in that place. Priceless as it cannot be duplicated by science. Hard won knowledge on how to survive from year to year. So much loss of what was known – a lot of it had to do with sustainability. Diversity in this ethnosphere helped humans survive. But now we are monocultured around the planet with a narrow knowledge base.

In history, most humans were farmers and they know about weather, pollination, nitrogen fixing plants and they are embedded in nature. From 1900, and amazing change. World population tripled to 6 billion in 2000. Huge cities and many cities. Transformation from village farming animal to a big city dweller. You can spend days and weeks not going outdoors. In a city, our perception of nature changes – who needs that? You just need a job. Then the economy becomes the highest priority. Thus, the Canada Prime Minister says you cannot do anything about GHG emissions, it will spoil the economy. Elevating the economy above all.

CEO of logging company asked “are environmentalists” willing to pay for the trees. So long as you argue within an economic framework. The real reason for fighting on the forest was not on services for humans i.e. pulp and paper versus alternative income form berries, flower arrangement and maybe a cure for cancer? Ecological services are mere economic externalities. Environmentalists have failed to shift the frame set by economics.

If you’ve to breathe polluted air, you’ll get sick. You need clean water. Bottled water from Europe in Malaysia? That should be criminal! Food and soil are high priorities too. Then whether you’re in oil palm or oil; how you do it should not undermine these foundations for life.

You live in a world constrained by laws of sciences and we live within it. Remember we are animals, we are subject to laws of carrying capacity of ecosystems. We have exceeded our biosphere by consuming the way we are. We are taking away from what rightly belongs to our children and grandchildren by over consuming.

Capitalism and the market economy. We invented these things! We can change these things so they conform to laws set by the natural world. Some see a forest as a sacred grove, rivers as a circulatory system – others see it as pulp and paper, irrigation system etc. Is the earth our mother or the mother lode?

Note: a cautionary view on the global free marketism approach including consumerism and global supply chains for processed products!

Call for higher palm oil promo spend?

FYI some comparative stats on Malaysia palm oil versus US agriculture promotional spending........ "The United States Department of Agriculture (USDA) in promoting American agriculture produce spends close to 1% of its total exports. In 2013, USDA data recorded USD 144 billion in export sales with USD1.3 billion spent on promotional marketing of such exports. If we use the USDA spend rate of 1% as a guide, the Ministry should spend about RM800 million a year to defend and promote palm oil, not a mere RM24.5 million. As such, we urge the Ministry to increase its spending to a more reasonable amount of RM200 million a year to turnaround and safeguard the future of this very important industry...."

Newslinks:

PKR rep cries foul over oil palm budget slash BY EILEEN NG Published: 18 November 2014
"Wong Chen (PKR-Kelana Jaya) said the Ministry of Plantation Industries and Commodities cut the budget for the promotion and defence of the commodity by 40%, from RM16 million this year to RM10 million next year. Also, the Malaysian Palm Oil Board (MPOB)'s budget also saw a decrease from RM25 million this year to RM14.5 million in 2015.... Wong said on an overall level, the ministry only allocated a "mere" RM24.5 million to defend and promote oil palm. "Palm oil is a RM80 billion export industry. To spend a mere RM24.5 million to defend and promote palm oil is a joke. RM24.5 million represents a mere 0.03% of total exports of palm oil," he said at a press conference in parliament today...." http://www.themalaysianinsider.com/malaysia/article/pkr-rep-cries-foul-over-oil-palm-budget-slash#sthash.wltkdmRc.dpuf

Defend national palm oil, increase budget allocation, urge Pakatan MPs BY PATHMA SUBRAMANIAMNovember 18, 2014; http://www.themalaymailonline.com/malaysia/article/defend-national-palm-oil-increase-budget-allocation-urge-pakatan-mps#sthash.UYsszKKU.dpuf

Press conference video here: http://www.kinitv.com/video/12888O8

RSPO RT12: On Compensation Liability and riparian reserves (update 1)

On Compensation Liability: RSPO reported that 35 companies submitted with 7 providing on LUC analysis. Observers ask if the previously cited $2500/hectare figure has now shifted to the higher end of $3000/hectare. Darrel Webber cites 280,000 hectares (globally) needs to be compensated.....

On riparian reserve remediation: These need to be 5 meters wide along small waterways. You need to measure at maximum width of the channel (ie. just before it floods, not the regular water's width). In some areas a wider reserve is appropriate if the waterway is upstream of communities (i.e. HCV 5) then the reserve width should 15-30 meters.

In areas of regular and extended flooding, the new RPSP P&C 2013 says there should be a review of suitable areas for planting. Thus, such areas should be left as natural vegetation.

Artificial waterways need not have a reserve. But since good water and soil management needed, for small channels which can transport pollution to natural waterways, there has to be reduced spraying of agro-chemicals within 10-15 meters of the edge of drainage channels linked to such natural water ways. Site planning should also reduce disconnected riparian zones which expand the risk of water pollution.

Restoration of degraded habitats.....
 

RSPO RT12: New GHG emission reduction scenarios for new plantings - Bumitama and Musim Mas case studies (update 1a)

RSPO’s Melissa Chin reported on how RSPO growers need to predict emissions from different development scenarios for their new plantings. In 2013, the Emission Reduction Working Group (ERWG) was set up to help companies on this new reporting requirement. The policy to assess and predict GHG emissions reductions is in RSPO Principles & Criteria 7.8. Previously required from 1 Aug 2014 it was shifted to mandatory on 1 Jan 2015. This needs to be submitted alongside New Planting Procedure but it is not required to be made public until 1 Jan 2017. Soil carbon, above and below ground carbon estimates are needed.....

Bumitama case study. GAR and Wilmar are key buyers requiring high carbon stock (HCS) policies. A mid-year discussion led to a pilot HCS assessment using their approach. Bumitama then committed on 12 September 2014 to use this on four target concessions. Concession KML had a base case plantable area of about 12,500 but was reduced to about 6,600 hectares on the planting scenario chosen. There was no planting on any peat (base case was plant on shallow peat). Significant areas of rubber agro-forest areas could not be replanted due to social or adat issues. Local people expect economic projects. They lodged a complaint with the regional government or Bupati on why Bumitama stopped development. Aidenvironment was hired to work on participatory mapping. Locals wanted to stop access to this NGO until it was shown that it worked with company to develop the land. The halt in development it also gave third parties the opportunity to approach the masyarakat to suggest a takeover so that the concession could return to faster development and some 1,000 hectares was “lost.” Planting less than the 12,500 hectares originally envisaged also means that the 20 percent area for plasma smallholder development is so much smaller under the new planting scenario. Bumitama has also engaged a lawyer to check if it has the right to conserve area to reforest. Can this really be done. However, a company still has to be run economically.....

 

 

Musim Mas case study. Using the RSPO carbon assessment procedure, Musim Mas presented two case studies, one already in new planting status and one before planting. The result was a GHG balance of -5 and -14 respectively; which means there was carbon sequestration from the two new estates. The company notes that the current default value for conservation areas is nil, but this is being reviewed and this will likely add on to the positive carbon balance of planting oil palm. Musim Mas is also doing mill POME biogas capture for all its facilties. These efforts will minimise its net GHG emissions........

 

Note: inherent in the RSPO carbon assessment are default values that will steer new plantings to minimize planting in high carbon stock areas. Under RSPO's Palm GHG calculator for carbon assessment, the default value for the oil palm is not bad ie. well above the earlier much bandied 35tC/ha measure. It is 55-65tC/ha of above and below ground carbon over a 25 year cycle.

 

Indonesia haze (update 4): KPK questions former Forestry Minister in Riau-Annas case

17 November 2014: KPK questions former Forestry Minister in Riau-Anas case

MPR speaker faces more questions from KPK BY Indra Budiari, The Jakarta Post, Jakarta | Headlines | Thu, November 13 2014, 9:23 AM; "For the second day in a row, the Corruption Eradication Commission (KPK) grilled People’s Consultative Assembly (MPR) Speaker Zulkifli Hasan, this time as a witness in a graft case involving Riau Governor Annas Maamun.... The KPK on Wednesday questioned Zulkifli, a former forestry minister, for his alleged role in the land-conversion permit abuse case implicating Annas.... On Tuesday, Zulkifli was grilled for 10 hours for his alleged role in issuing permits for a luxury housing project in Bogor, West Java.... “Their questions were very technical. I also explained spatial planning — I told them that spatial planning in Riau was an achievement because the project was incomplete for a very long time,” Zulkifli told reporters.... Zulkifli, a member of the National Mandate Party (PAN), expressed his disappointment at being dragged into a corruption case so soon after leaving office.... He also denied approving the land-conversion proposal filed by Annas.... “It’s true that the governor submitted a request for a land-conversion permit to me, which I then gave to my inspector general for consideration, but he never gave me his opinion of the permit, so it did not have my approval,” Zulkifli said.... The antigraft body arrested Annas and palm-oil businessman Gulat Manurung, who was also chairman of the Indonesian Oil Palm Farmers Association’s (Apkasindo) Riau chapter, in a raid on Sept. 27...." http://www.thejakartapost.com/news/2014/11/13/mpr-speaker-faces-more-questions-kpk.html


13 October 2014: Third Riau governor implicated in graft

KPK charges Riau governor in land conversion case by Rizal Harahap, The Jakarta Post, JAKARTA/Pekanbaru | Headlines | Sat, September 27 2014, 9:38 AM;
http://www.thejakartapost.com/news/2014/09/27/kpk-charges-riau-governor-land-conversion-case.html; "After hours of questioning, the Corruption Eradication Commission (KPK) has named Riau Governor Annas Maamun and palm-oil businessman Gulat Manurung graft suspects... during the operation, the KPK had also confiscated S$156,000 (US$122,450) and Rp 500 million (US$41,500), which allegedly was to be given by Gulat, who was also chairman of the Indonesian Oil Palm Farmers Association (Apkasindo) Riau chapter, to Annas. The money was allegedly given to the governor so he would issue a land-conversion permit for Gulat’s oil palm plantation business.
Meanwhile, KPK deputy chairman Bambang Widjajanto explained that Gulat had a 140-hectare oil palm plantation in Kuantan Singingi regency in Riau, which had been planted in an industrial forest area (HTI). Gulat then asked for the governor’s help to convert the area into a non-forest area, or area for other use (APL).... “As well as for the land-conversion permit, we suspect money was also given to the governor to facilitate Gulat’s future projects in Riau, but we will check that,” Bambang said.
Annas is the third consecutive Riau governor implicated in a graft case. The previous two governors, Rusli Zainal and Saleh Djasit, have already been sentenced in separate graft cases. Rusli was sentenced to 10 years’ imprisonment for his role in the Pelalawan forestry permit and Riau National Games graft cases, while Saleh got four years for his involvement in the procurement of fire-fighting
vehicles...."
29 September 2014: landmark peat fire fines

Indonesian government files lawsuits against companies that set forest fires by Hans Nicholas JongThe Jakarta Post/Asia News NetworkSaturday, Sep 27, 2014; The Environment Ministry has filed lawsuits against several agroforestry companies suspected of starting forest fires in Sumatra.
The ministry is taking legal action against seven agroforestry companies that allegedly set fire to forest areas in Riau in 2013. The ministry's law enforcement deputy, Himsar Sirait, said on Friday that the dossiers had been submitted to the Attorney General's Office (AGO). "We are currently completing the support documentation required by the AGO," Himsar told The Jakarta Post.
The seven companies, which are only referred to by their initials, are palm oil companies PT BHS, PT JJP and PT LIH, and industrial forest companies PT RUJ, PT SRL, PT SPM and PT BBH.
The ministry is also investigating allegations that two palm oil companies, PT TFDI and PT TKWL, and an industrial forest company, PT SGP, started forest fires earlier this year.... Between 2012 and now, the ministry has investigated and filed lawsuits against a number of Sumtra-based plantation companies. In 2012, the ministry filed lawsuits against PT Kallista Alam and PT Surya Panen Subur (SPS). Meulaboh District Court found Kallista Alam guilty of burning peatland in the Leuser conservation area in Nagan Raya regency, Aceh, and ordered the firm to pay a fine of US$30.5 million (S$38.8 million). The ministry, however, lost on Thursday the lawsuit it had brought against PT SPS - for allegedly burning peatland in Tripa Swamp, also in Aceh - which was heard at the South Jakarta District Court..." http://news.asiaone.com/news/asia/indonesian-government-files-lawsuits-against-companies-set-forest-fires#sthash.Ih8sCBsN.dpuf

Indonesia, Malaysia drawing up haze agreement by Zubaidah Nazeer, The Straits Times/ANN, Jakarta | World | Fri, September 26 2014, 11:42 AM; http://www.thejakartapost.com/news/2014/09/26/indonesia-malaysia-drawing-haze-agreement.html;
Indonesia and Malaysia are working on a bilateral pact to better tackle the annual transboundary haze, according to officials from both countries who said the tie-up would focus on better fire prevention and tougher penalties for open burning on peatland. Discussions for the memorandum of understanding (MoU) began a month ago on the sidelines of an Asean inter-ministerial meeting, and picked up pace after Indonesia's Parliament finally agreed last week to ratify an Asean haze pact....An aide to Malaysian environment minister Palanivel Govindasamay said both countries had "basically agreed on" the pact. But both sides declined to say when they might sign off on it.'"We are looking at exchange of information and experiences but, importantly, establishing joint research focusing on fire prevention, not just combating a blaze," Arief Yuwono, Indonesia's deputy minister for Environmental Degradation Control and Climate Change, told The Straits Times yesterday... The aide to Palanivel added that the information being exchanged would include details on many Malaysian companies operating in Indonesia, especially those in the palm oil industry.... The pact would also raise the fines for those caught carrying out open burning on peatland, the root cause of forest fires that spark off the annual haze. Officials declined to give specific figures for the new penalties...."


23 September 2014:

Khor Reports: Are there are any good investigations of possibility and cost of raising the water table in the peatsmog haze prone areas. We met the folk at Singapore Institute of International Affairs yesterday, and had a good chat on this as well as the efforts to use remote sensing to track fires and identify its culprits (you will recall that the Indonesian courts have started to take a "negligence" approach to this matter). Since the problem has been going on so many years, might a multi-prong, approach help? While NGO action has helped to publicize the problem and they have helped to get large plantations to agree to halt any development on peat (and stop buying from those still developing on peat), the next stage seems tougher and more scientifically technical. Thanks in advance to readers for any information on the question - how can we really stop / reduce the haze problem?

This ratification comes hot on the heels of a landmark ruling on peat fire where a charge of negligence results in a fine of almost S$2 million being handed down. I posted on this earlier, but repeat it here: http://news.asiaone.com/news/asia/malaysian-firm-fined-executives-get-prison-role-forest-fires; "...The Pelalawan District Court in Riau sentenced ADEI general manager Danesuvaran KR Singam to a year in prison and the option of paying Rp 2 billion (S$210,000) or serving an additional two months in jail for violating Article 99 (1) of the 2009 Environmental Protection and Management Law. "The defendant was negligent in his supervisory role of the estate. He should have actively prevented irresponsible parties from slipping into the estate and setting the fires," presiding judge Donovan Pendapotan said. Danesuvaran, however, was not sent directly to prison after the hearing. "We need to wait for a final and binding verdict from the Supreme Court before sending the defendant to prison," said prosecutor Banu Laksmana, adding that the prosecutors would appeal the sentence. The court found ADEI guilty of violating the same article in the 2009 law and handed down a Rp 1.5 billion fine or see its director, Tan Kei Yoong, serve five months in jail. The court also ordered ADEI to pay an additional Rp 15.1 billion to repair the environmental damage caused by the forest fires...." **Total fines and repair charges for the fire = Rp 2 + 1.5 + 15.1 billion = Rp 18.6 billion or about SG$1.95 million?


Editorial: Overdue haze treaty; The Jakarta Post | Editorial | Thu, September 18 2014, 8:16 AM
"The House of Representatives untypically changed its role from villain to hero on Tuesday when it ratified the ASEAN Agreement on Transboundary Haze Pollution. The belated move has saved Indonesia from international mockery, if not condemnation, for its failure to rein in the seasonal forest fires that have endangered the lives of its own people and those in neighboring countries.
For a decade the lawmakers, without any sense of culpability, refused to endorse the government’s acceptance of the pact for fear of possible infringement on Indonesia’s sovereignty, given the involvement of foreign, parties to the treaty in a joint task force that would fight fires inside Indonesia. Such a nationalist, if not xenophobic, mindset has led to a protracted, choking haze in the provinces of Sumatra and Kalimantan, home to oil palm plantations and logging activities. The disaster was recurring, which simply proved that Indonesia could not address the forest fires alone.
Tuesday’s unanimous approval by the House therefore marked an end to the politicians’ insensitivity to the suffering of many people..." http://www.thejakartapost.com/news/2014/09/18/editorial-overdue-haze-treaty.html

RI ratifies haze treaty by Margareth S. Aritonang, The Jakarta Post, Jakarta | Headlines | Wed, September 17 2014, 9:17 AM; "Indonesia has officially adopted a decade-old regional haze treaty following pressure from neighboring countries over forest fires on the islands of Sumatra and Kalimantan. A House of ReI presentatives’ plenary meeting on Tuesday endorsed the ratification of the ASEAN Agreement on Transboundary Haze Pollution, which obliges Indonesia, as one of the member states, to actively involve itself in efforts to mitigate air pollution, both nationally and through intensified regional and international cooperation. “Ratifying the [regional haze] agreement is the appropriate measure for Indonesia to prove its integrity as well as step up its role in solving problems in the region,” Environment Minister Balthasar Kambuaya told the meeting.
“As a country with one of the largest areas of forest, this will help Indonesia deal with pollution in the future,” he added. Indonesia was the only ASEAN country left to ratify the agreement, having signed the pact in 2002 along with the other member states. The agreement was formulated as a response to an environmental crisis that hit Southeast Asia in the late 1990s, which was mainly caused by slash-and-burn clearance for agricultural purposes in Sumatra and Kalimantan...."
http://www.thejakartapost.com/news/2014/09/17/ri-ratifies-haze-treaty.html

Text your say: Addressing the haze  | Readers Forum | Mon, September 22 2014, 9:33 AM
Your comments on the ratification of a decade-old regional haze treaty by the House of Representatives, following pressure from neighboring countries over forest fires on the islands of Sumatra and Kalimantan: This is only one of many steps to protect our forests and the people of neighboring countries... http://www.thejakartapost.com/news/2014/09/22/text-your-say-addressing-haze.html.

China market (update 2): To cap emissions and have 20% energy from zero-emission sources by 2030

12 November 2014: China to cap emissions and have 20% energy from zero-emission sources by 2030

China and US strike deal on carbon cuts in push for global climate pact by Lenore Taylor, Guardian Australia political editor, Tania Branigan in Beijing and agencies, theguardian.com, Wednesday 12 November 2014 06.54 GMT; "Barack Obama aims for reduction of a quarter or more by 2025, while Xi Jinping sets goal for emissions to fall after 2030...The United States and China have unveiled a secretly negotiated deal to reduce their greenhouse gas output, with China agreeing to cap emissions for the first time and the US committing to deep reductions by 2025... The pledges in an agreement struck between President Barack Obama and his Chinese counterpart, Xi Jingping, provide an important boost to international efforts to reach a global deal on reducing emissions beyond 2020 at a United Nations meeting in Paris next year.... China, the biggest emitter of greenhouse gases in the world, has agreed to cap its output by 2030 or earlier if possible. Previously China had only ever pledged to reduce the rapid rate of growth in its emissions. Now it has also promised to increase its use of energy from zero-emission sources to 20% by 2030...." http://www.theguardian.com/environment/2014/nov/12/china-and-us-make-carbon-pledge

4 November: Macau Casino Revenue Drops Record 23% as Austerity Bites  By Billy Chan  Nov 4, 2014 1:29 PM GMT+0800; "Macau’s casino revenue plunged by the most since the city started monthly records in 2005, as China’s crusade against corruption prompted gamblers to cut back on lavish spending...."
http://www.bloomberg.com/news/2014-11-04/macau-casino-revenue-plunge-record-23-as-austerity-bites.html

1 November: anti-corruption hits demand?

Khor Reports: We recently spoke to China market specialists. The problem there is not just the shadow financing / LC problem (the big players still have financing access). There is also significant concern of constrained demand growth as the China anti-corruption drive hits gifting in the food sector including restaurant meals and mooncakes. For example, it is noted that it was the first time in many years that "hairy crab" prices fell. China watchers point out that the country's oil & fats annual increase was in a higher range of 1.5-2 million tonnes but it is now down to a 1 million tonnes increase. Do view Desmond Ng's presentation from the recent MPOC POTS KL conference which forecasts China palm oil demand for 2014 at 5.62 million tonnes, down from 2013 and the slowest since 2008, and from which the chart below is extracted. The recent peak of over 60% of palm oil imported by "traders" is also consistent with information from our chats with China-based traders in the middle of the year - they also mentioned the increased size of shipments by traders up to that point.

 

source: Latest development, challenges and outlook of palm oil market in China by Desmond Ng, MPOC Shanghai, POTS KL 2014, October 2014

  

Newslinks:

 Chinese govt officials told to shun mahjong Published on Oct 29, 2014; The commentary was the latest in a series of state-issued broadsides against official extravagance, as Chinese President Xi Jinping attempts to improve the Communist Party's image in response to widespread anger over endemic corruption. Chinese officials have held secret sauna parties and have been hiding alcohol in plastic water bottles as they seek to get around a crackdown on extravagance, according to the People's Daily last year. "Constant reports of saunas held at farm houses" were evidence of a growing culture of "low-key extravagance" that was damaging the new President's anti-corruption drive, it reported. The Chinese government on Monday issued a ban on private clubs in historical buildings and parks, which are often frequented by officials, state-run media reported. The campaign against graft has been blamed for falling sales of luxury items, and has hit business at expensive hotels and restaurants. - See more at: http://www.straitstimes.com/the-big-story/asia-report/china/story/chinese-govt-officials-told-shun-mahjong-20141029#sthash.xtRmSRYR.dpuf

Decrease in mooncake bribery: survey(Xinhua) 13:20, September 11, 2014; BEIJING, Sept. 11 -- More than half of respondents to a survey on subtle corruption during China's Mid-Autumn festival believe there has been less use of public funds to buy traditional snacks this year, according to results published on Thursday. Some 54.6 percent of those polled by the China Youth Daily felt that there had been a marked drop in spending of public funds on mooncakes, while 76.7 percent said they have noticed the top anti-graft body's ban on this practice. Where respondents have received mooncakes, 49.4 percent said they bought them themselves, 32 percent got them from relatives or friends, 27.4 percent from employers, 6.7 percent from clients, and 4.5 percent from their subordinates. http://english.peopledaily.com.cn/n/2014/0911/c90882-8781306.html  

Xinhua Insight: Who are the winners of China's anti-corruption drive? English.news.cn | 2014-10-14 21:56:01 | Editor: Fu Peng; Now after more than 22 months since late 2012, the campaign is still going strong and likely to continue. Tens of "tigers" above the ministerial level have fallen, including a former member of the Standing Committee of the Political Bureau of the Communist Party of China (CPC)Central Committee. Xinhua reported earlier this month that restaurant owners in several places have demanded local governments pay their debts, which accumulated in the form of IOUs and at the cost of taxpayers. Even the hairy crab, a high-end delicacy mainly enjoyed by government officials, saw its first price cut in 12 years in September and can now be easily bought by ordinary people. http://news.xinhuanet.com/english/china/2014-10/14/c_133716535.htm