Wednesday, September 28, 2016

Research and tech market news: Review of studies attributing "good and bad", Documentary - Appetite for Destruction: The Palm Oil Diaries and University of Uppsala’s high fat muffin study


29 Sep 2016: Review of studies attributing "good and bad" 


Good – palm oil from Mesoamerica and Africa as 2-7% was from forest in 1989. Bad – Southeast Asian oil palm, as 45% comes forest area. 
“Our analysis reveals regional trends in deforestation associated with oil palm agriculture. In Southeast Asia, 45% of sampled oil palm plantations came from areas that were forests in 1989. For South America, the percentage was 31%. By contrast, in Mesoamerica and Africa, we observed only 2% and 7% of oil palm plantations coming from areas that were forest in 1989. The largest areas of vulnerable forest are in Africa and South America.” Refer to "The Impacts of Oil Palm on Recent Deforestation and Biodiversity Loss" by. V Vijay et al. (2016) in  PLoS ONE 11(7).

Bad – rapid forest to plantation conversion; and pre-2005, Sabah and Sarawak worse than Kalimantan. Indonesia post 2005 rapid conversion.  
People have been arguing that plantations should be developed on degraded lands, and a recent study found that is true more in Kalimantan in Indonesia (up to 2005) than Malaysian Borneo where plantation industry was the principle driver of the loss of forest because of the speedy rate of conversion (within 5 years). “Between 1973 and 2015 an estimated 18.7 Mha of Borneo’s old-growth forest were cleared (14.4 Mha and 4.2 Mha in Indonesian and Malaysian Borneo). Industrial plantations expanded by 9.1 Mha (7.8 Mha oil-palm; 1.3 Mha pulpwood). Approximately 7.0 Mha of the total plantation area in 2015 (9.2 Mha) were old-growth forest in 1973, of which 4.5-4.8 Mha (24–26% of Borneo-wide deforestation) were planted within five years of forest clearance (3.7-3.9 Mha oil-palm; 0.8-0.9 Mha pulpwood). This rapid within-five-year conversion has been greater in Malaysia than in Indonesia (57-60% versus 15-16%). In Indonesia, a higher proportion of oil-palm plantations was developed on already cleared degraded lands (a legacy of recurrent forest fires). However, rapid conversion of Indonesian forests to industrial plantations has increased steeply since 2005.” Refer to "Rapid conversions and avoided deforestation: examining four decades of industrial plantation expansion in Borneo" by D. Gaveau et al. (2016) in Scientific Reports 6: 32017.

Bad – conversion of forests to produce palm and soybean oil used in junk foods. 
Researchers estimated the amount of land — and the potential amount of forests — required to produce the palm and soybean oil used in junk foods….. We will need an estimated 17.1 million metric tons of vegetable oil for junk food production by 2050, which would require something like an additional 5 million to 9.3 million hectares (12.3 million to 23 million acres) of soybean land and about 0.5 to 1.3 million hectares (1.2 million to 3.2 million acres) of additional oil palm land,… Using historical trends… much of this oil palm and soybean expansion will occur at the expense of tropical rainforests. Refer to "Junking tropical forests for junk food?" by J.S.H. Lee et al. (2016) in Frontiers in Ecology and the Environment.

 

14 Sep 2016: Documentary - Appetite for Destruction: The Palm Oil Diaries and University of Uppsala’s high fat muffin study


Palm oil: bad news for forests, and your liver  12/09/2016 -- Food companies were left with a dilemma: they couldn’t use trans-fatty acids, but they needed an ingredient that would provide that smoothy, creamy taste their customers loved. As Prof Bruce Griffin from the University of Surrey told me, “palm oil was introduced as a natural substitute for trans-fatty acids”.... Despite replacing an unhealthy ingredient, palm oil-producing countries have suggested palm oil is perfectly healthy. The Malaysian Palm Oil Council even suggests that studies show palm oil, in liquid form, is “comparable to the much touted gold standard olive oil for its effects on blood cholesterol”.... Under the researchers’ guidance, I did my own version of the experiment that mimicked the official study. For six weeks, I ate three muffins a day containing palm oil on top of my normal diet.... In the University of Uppsala’s controlled study they noticed that participants from both the palm and sunflower oil groups gained about 1.6kg in weight. However, the palm oil group gained “more liver fat, total fat, and visceral fat” than the sunflower oil group. This means the fat was gained around vital organs, which can be very dangerous in the long term..... I think we need to reconsider not only how we produce this oil, but also, given the health consequences, whether we should be eating so much of it in the first place....Appetite for Destruction: The Palm Oil Diaries is available on Amazon and iTunes... http://www.climatechangenews.com/2016/09/12/i-ate-palm-oil-muffins-for-six-weeks-and-gained-60-body-fat/

News update for early 2016 - Fungus fermentation and Sime Darby's super seeds

Fungus Fermentation Turns Palm Waste Into Fodder -- Farmers often use agro-industrial waste - such as rice bran - as animal feed, but these crop residues lack protein, vitamins and other nutrients, the study says. The scientists from the University of Malaysia Perlis (UniMAP) used the fungus Aspergillus terreus to produce large amounts of protein through the fermentation of palm pressed fibre and palm oil decanter cakes, two types of palm oil milling residue. http://allafrica.com/stories/201604140511.html

Sime Darby sees higher profit with new genome super palms BY P. ARUNA 5 April 2016 http://www.thestar.com.my/business/business-news/2016/04/25/sime-darby-sees-higher-profit-with-new-genome-super-palms/

Sime Darby eyes 15% better palm oil yield By Ahmad Naqib Idris / The Edge Financial Daily   | April 26, 2016 http://www.theedgemarkets.com/my/article/sime-darby-eyes-15-better-palm-oil-yield
\
Major milestone for Sime Darby BY P. ARUNA  9 May 2016 http://www.thestar.com.my/business/business-news/2016/05/09/major-milestone-for-sime-darby/

Super Seed Identified to Produce More Palm Oil Using Less Land  May 09, 2016 Robert Hii Sustainable Business Consultant  http://www.huffingtonpost.com/robert-hii/super-seed-identified-to-_b_9866180.html


30 Nov 2015: Organic is best for wildlife but "conservation grade" non-organic supports 20% more plants and butterfly species

Can farms be good for nature without being organic? - The organic-or-not debate ignores a crucial further option. Setting aside tracts of land for wildlife habitat can benefit bees, butterflies and plants without harming crop yields - Research found that organic farms are the best for wildlife, but conservation grade non-organic farms still support 20% more plant and butterfly species.... by Karl Mathiesen 18 November 2015  http://www.theguardian.com/environment/2015/nov/18/can-farms-be-good-for-nature-without-being-organic

19 October 2015: Global obesity driven by Westernised diets pushed by food companies, MPOB promotions  in China and oil palm gene work


Global obesity rise puts UN goals on diet-related diseases 'beyond reach' - Westernised diets blamed as figures predict failure to meet 2025 target of no increase in obesity or diabetes beyond 2010 levels by Sarah Boseley and Helen Davidson in Darwin Friday 9 October 2015 17.19 BST  http://www.theguardian.com/society/2015/oct/09/obesitys-global-spread-un-goals-diet-related-diseases-fail


Ministry hopes for more R&D allocation in Budget 2016 Bernama | Published on October 06, 2015 14:38 MYT http://english.astroawani.com/business-news/ministry-hopes-more-r-d-allocation-budget-2016-75358
 

MPOB to step up promotions in China 15 September 2015; "We are looking at not just promoting/exporting the oils but also other palm oil-based products. We now moving mainland towards the west to regions like Chongqing besides our tradition markets of Guangzhou, Shanghai and Beijing," he told Bernama on the sidelines of the Palm Oil Health and Nutrition Forum in Beijing on Tuesday. Wan Mohammad said the nutritional values of palm oil, its non-food applications as well as its usage in pharmaceuticals would be the key areas for MPOB in promoting the edible oil. He said MPOB was looking at not just exporting the edible oil but also palm-based products to achieve the gross national income (GNI) contribution target for the industry of RM178 billion by 2020. On whether anti-palm oil campaigns such as the "no palm oil" food labels in Europe would affect exports to China, Wan Mohammad said issues like environmental and deforestation played up in Europe would not surface in China. He pointed out that the ban on the use of palm oil in infant formula preparation in 2013 had been resolved following research results and effective action taken by Malaysian Government to convince the China Food and Drug Administration. Consumers in China have accepted palm oil as one of the important vegetables oil for consumption and imports of palm oil increased nearly 50% from 3.85 million tonnes in 2004 to 5.63 million tonnes in 2014. China's imports of palm oil from Malaysia stood at 3.9 million tonnes last year. http://www.thestar.com.my/Business/Business-News/2015/09/15/MPOB-to-step-up-promotions-in-China/?style=biz

MPOB to focus on non-food applications, health benefits to promote palm oil in China September 16, 2015, Wednesday http://www.theborneopost.com/2015/09/16/mpob-to-focus-on-non-food-applications-health-benefits-to-promote-palm-oil-in-china/#ixzz3ownOtdqI

MPOB, partners identify genetic secrets to help palm oil yield Published on: Friday, September 11, 2015 http://www.dailyexpress.com.my/news.cfm?NewsID=103116

Mutation discovered in oil palm genes: a game changer? Copyright: Ian Teh / Panos. Scientists had noted that some prized oil palm clones grow into barren adults. The cloned palms turned out to have epigenetic mutation in mantled genes. Researchers are working to simplify the diagnostic test that will tag abnormal clones...http://www.scidev.net/asia-pacific/agriculture/news/mutation-discovered-in-oil-palm-genes-a-game-changer.html

Stopping ‘bad karma’ could save palm oil industry millions By Niamh Michail+, 16-Sep-2015 Scientists have identified a genetic defect in oil palms, called bad karma, which reduces yields – a finding that could save industry both time and money, they say. http://www.foodnavigator.com/Science/Stopping-bad-karma-could-save-palm-oil-industry-millions

13 September 2015: MPOB pursues new palm-based products in neutra and pharma, MPOB partners identify genes for yield improvement, palm oil additive marketing questions

R&D to produce new palm oil-based products by Bernama  Sep 7th, 2015 10:57 am; Malaysia will continue to undertake research and development (R&D) to come out with new palm-based products, including nutraceutical and pharmaceutical, for the global community. Plantation Industries and Commodities Minister Douglas Uggah Embas said today the Malaysian Palm Oil Board's (MPOB) offices in the US, Europe, Africa, Pakistan and China would assist the industry by continually working with authorities and industry players to increase the uptake of palm oil for food and non-food sectors.... "These studies have proven that palm oil is indeed a nutritionally superior oil," he said. Success of industry has attracted detractors...http://www.malaysiakini.com/news/311343

MPOB, Partners Identify Genetic Secrets To Improve Palm Oil Yield KUALA LUMPUR, Sept 10 (Bernama) -- The Malaysian Palm Oil Board (MPOB) and its research partners from the United States have identified genetic secrets to improve oil yield via the use of oil palm clones.  "Through the research on the oil palm genome, we have identified a transposable element named 'Karma', which is responsible for the low-yielding mantled fruit.  "The discovery has led to the development of a simple, leaf based test that can identify 'Bad Karma' and predict mantling before palms are planted in the field," MPOB said in a statement today. http://www.bernama.com.my/bernama/v8/bu/newsbusiness.php?id=1170062

Epigenetic Study IDs Locus Linked to Unfavorable Phenotype in Cloned Oil Palms Sep 09, 2015    | a GenomeWeb staff reporter  NEW YORK (GenomeWeb) – Muted methylation of the transposon Karma appears to explain the unpredictable, spontaneous production of oil palm clones with undesirable phenotypes such as abnormal fruit shape and low yield, according to a study appearing online today in Nature. Researchers from Malaysia and the US did an epigenome-wide association study (EWAS) to search for potential culprits in this spontaneous process, known as mantling, in the African oil palm plant Elaeis guineensis...https://www.genomeweb.com/applied-markets/epigenetic-study-ids-locus-linked-unfavorable-phenotype-cloned-oil-palms

Palm Oil Additive May Not Stand Up To Scientific Scrutiny, Marketed as a healthier oil due to its apparent stability and lower oil absorption rates, Afdhal palm oil may not stand up to the scrutiny of critics.        Science and Development Network  | September 15, 2015  |  Editorials Read more from Asian Scientist Magazine at: http://www.asianscientist.com/2015/09/features/malaysia-afdhal-palm-oil/

Tuesday, September 20, 2016

International Criminal Court (ICC) will try land grabs and environmental destruction, human trafficking - test case Cambodia?

The Hague, ICC: COMPANY EXECUTIVES COULD NOW BE TRIED FOR LAND GRABS AND ENVIRONMENTAL DESTRUCTION Press release / 15 Sep 2016 -- A move by the Prosecutor of the International Criminal Court to expand its focus signals a landmark shift in international criminal justice and could reshape how business is done in developing countries, says Global Witness. Company executives, politicians and other individuals could now be held criminally responsible under international law for crimes linked to land grabbing and environmental destruction...... Global Witness: a case filed in 2014 that catalogues mass human rights abuses linked to systematic land seizures in Cambodia, where business leaders have been working hand-in-glove with the country’s kleptocratic government. (3).... (3) This case will be a key test for the ICC’s new policy. If accepted, this would be the first case in international criminal law where the primary allegations relate to the illegal exploitation of land. Corporate actors in Cambodia could be the prime targets for investigation - they have been complicit in a widespread and systematic campaign of illegal land seizures, leading to the forcible displacement of hundreds of thousands of Cambodians with the help of the state police, military and judiciary. The case was filed at the ICC by international human rights lawyer Richard J Rogers, of the law firm Global Diligence LLP, relying on evidence collected by Cambodian and international organisations, including Global Witness.... https://www.globalwitness.org/en-gb/press-releases/company-executives-could-now-be-tried-land-grabbing-and-environmental-destruction-historic-move-international-criminal-court-prosecutor/r/


References to environment and trafficking in "OFFICE OF THE PROSECUTOR - POLICY PAPER ON CASE SELECTION AND PRIORITISATION," 15 September 2016

7. ... In particular, it will seek to cooperate with States who are investigating and prosecuting individuals who have committed or have facilitated the commission The Office will also seek to cooperate and provide assistance to States, upon request, with respect to conduct which constitutes a serious crime under national law, such as the illegal exploitation of natural resources, arms trafficking, human trafficking, terrorism, financial crimes, land grabbing or the destruction of the environment (See article 93(10) of the Statute).

40. The manner of commission of the crimes may be assessed in light of, inter alia, the means employed to execute the crime, the extent to which the crimes were systematic or resulted from a plan or organised policy or otherwise resulted from the abuse of power or official capacity, the existence of elements of particular cruelty, including the vulnerability of the victims, any motives involving discrimination held by the direct perpetrators of the crimes, the use of rape and  other sexual or gender-based violence or crimes committed by means of, or
resulting in, the destruction of the environment or of protected objects (See articles 8(2)(b)(ix) and 8(2)(e)(iv) of the Statute).

41. The impact of the crimes may be assessed in light of, inter alia, the increased vulnerability of victims, the terror subsequently instilled, or the social, economic and environmental damage inflicted on the affected communities. In this context, the Office will give particular consideration to prosecuting Rome Statute crimes that are committed by means of, or that result in, inter alia, the destruction of the environment, the illegal exploitation of natural resources or the illegal dispossession of land. 

https://www.icc-cpi.int/itemsDocuments/20160915_OTP-Policy_Case-Selection_Eng.pdf, and referring page, https://www.icc-cpi.int//Pages/item.aspx?name=pr1238


Monday, September 5, 2016

Eye on Council of Palm Oil Producing Countries (CPOPC): Malaysia appoints first of its three representatives for CPOPC

10 August 2016: Malaysia, Indonesia to counter black campaign


Malaysian, Indonesia to counter black campaign on CPO by Ayomi Amindoni  The Jakarta Post, August 2 2016 -- The Council of Palm Oil Producing Countries (CPOPC) established by Malaysia and Indonesia—the world’s two largest crude palm oil (CPO) producers—will soon conduct research to counter a black campaign against the product. CPO and palm oil products of both Indonesia and Malaysia have recently faced difficulties to enter some developed markets, such as the EU, because of tough requirements related to environmental issues. Indonesia and Malaysia had agreed to respond to the black campaign because CPO was an important export commodity for the two countries, said Malaysia Prime Minister Najib Razak said at the State Palace in Jakarta on Monday....."We need to make a joint study, not only on marketing, but also to respond certain [environmental] issues so that palm oil products can be accepted all over the world," Najib said. Meanwhile, Trade Minister Enggartiasto Lukita gave the example that currently CPO from Malaysia and Indonesia had difficulties entering France, citing a study’s findings that said palm oil products consisted of a substance that caused cancer. "Soon, CPOPC will conduct research to counter this allegation," the minister said.... http://www.thejakartapost.com/news/2016/08/02/malaysian-indonesia-to-counter-black-campaign-on-cpo.html


27 July 2016: Awaiting CPOPC impetus

Editor's note: Specialists reckon that a cool down in expectations for Felda/FGV-Eagle High deal may have affect on leadership at CPOPC - this follows on FGV statement of "no deal" and also uncertainty on Indonesia's mooted policy for moratorium on unplanted concession areas (refer to our 27 July blog posting here, http://khorreports-palmoil.blogspot.my/2015/10/jokowi-and-2015-haze-step-down-on.html). However, it is also possible that other impetus may come to drive CPOPC. We hear its meetings have been delayed in recent weeks because of a hiatus on waiting for Malaysia's new Minister of Primary Industries and Commodities to be appointed (about two months, after the previous Minister stepped down to become one of the three Sarawak deputy Chief Ministers; separately, there was a helicopter tragedy a few days before that state's election polls that took the lives of several key persons in the Malaysia hierarchy). Also, we hear that a scheduled meeting for this week has been put off. Indonesia has been mulling cabinet reshuffle in recent months following political realignments and a super majority for the ruling coalition that saw two new parties joining it - Golkar and PAN. 


5 Sep 2016: Malaysia appoints first of its three representatives for CPOPC

Malaysia appoints representative for CPOPC BY OOI TEE CHING - 30 AUGUST 2016 -- PUTRAJAYA: Palm Oil Refiners Association of Malaysia chief executive officer Mohammad Jaaffar Ahmad has been appointed as Council of Palm Oil Producing Countries (CPOPC) deputy executive director. “Jaaffar will represent Malaysia and he will assume the position of deputy executive director in CPOPC. He will be based in Jakarta,” said Plantation Industries and Commodities Minister Datuk Seri Mah Siew Keong. “We will appoint the other two representatives in a couple of weeks. They will be tasked with taking care of smallholders interests and global palm oil stock management,” the minister added. “We hope to accelerate the operations of the secretariat soon. The next CPOPC meeting will be in Jakarta in a few months time,” he told reporters after chairing a CPOPC meeting here today. Read More : http://www.nst.com.my/news/2016/08/169384/malaysia-appoints-representative-cpopc?d=1


25 April 2016: Critique of CPOPC-agribusiness  “right to develop”  stance?

Commentary: Palm Oil Politics Impede Sustainability in Southeast Asia - Indonesia has facilitated the inflow of Malaysian capital and technology. Malaysian companies control 25 percent of oil palm plantations in Indonesia. By Rob Cramb & John McCarthy | on April 20, 2016... Indonesia and Malaysia are at the center of the world’s decades-long palm oil boom. Between them the two countries have planted more than 15 million hectares of oil palm, employ about 4 million workers, and produce 84 percent of the world’s palm oil. It is the biggest and fastest rural transformation the countries have seen. Palm oil, a vegetable oil used in many foods and other products, has come under fire for its role in deforestation, biodiversity loss and massive forest fires, as well as major social and economic conflicts. This has led to a rise in consumer activism and campaigns against unsustainable oil palm production, with many brands committing to purchase palm oil from sustainable sources only. While governments, civil society groups and industry roundtables are trying to address these many problems, the industry continues to create conflict as it moves into frontier zones with apparent impunity. Why is this?....This “oil palm complex” is managed by a powerful cross-country coalition of political and agribusiness interests. Despite the industry rhetoric, this coalition puts “profits” well ahead of “people” or “planet.”.... Three important but contradictory trends have emerged in the past two decades.... Domination of big plantations...Rise of smallholders....Is private regulation working? A third trend arises from the widespread failure of governments to regulate the excesses of the oil palm industry. Civil society groups and some large corporations have sought to bring about change though private regulation. In the past two years, transnational activism has achieved important shifts in the policies of major producers, buyers and end users of palm oil. Leading firms such as Cargill and Unilever have made commitments to cut their links to deforestation, peatland development and exploitation in the palm oil they procure. Thus there are some signs that the balance of power within the oil palm complex may have shifted in favor of more inclusive and sustainable outcomes. However, these commitments will have limited impact without major changes in accountability and enforcement within the two countries. This especially applies at state and district levels where the key land and profit-sharing deals take place... Moreover, the launching by Indonesia and Malaysia in 2015 of the Council of Palm Oil Producing Countries suggests that these governments and their domestic agribusiness allies are pushing back against the pressure from international NGOs and global corporations. They are emphasizing their “right to develop” and capitalizing on the acquiescence of their biggest markets – China and India – which have higher priorities than safeguarding Southeast Asian forests and livelihoods....http://jakartaglobe.beritasatu.com/opinion/commentary-palm-oil-politics-impede-sustainability-southeast-asia/

  Indonesia & Malaysia Set Criteria for the Council of Palm Oil Producer Countries 12 April 2016 by Arief Havas Oegrosono -- Nine or ten crude palm oil (CPO) producers want to join the Council of Palm Oil Producer Countries (CPOPC), the intergovernmental palm oil council set up by the world's two largest CPO producers and exporters: Indonesia and Malaysia. These two initiators signed an agreement in November 2015 for the establishment of the CPOPC - headquartered in Jakarta - that aims to control the global CPO supply, stabilize palm oil prices, promote sustainable practices in the palm oil industry, and enhance the welfare of oil palm smallholders; more or less the role that OPEC has in the crude oil industry. http://www.indonesia-investments.com/news/todays-headlines/indonesia-malaysia-set-criteria-for-the-council-of-palm-oil-producer-countries/item6697

17 April 2016: Indonesia & Malaysia Set Criteria, no development on peat lands

Indonesia & Malaysia Set Criteria for the Council of Palm Oil Producer Countries 12 April 2016; Currently both initiators - Indonesia and Malaysia - are the CPOPC's only members as both nations are still finalizing the criteria that need to be met by other countries in order to be eligible to join the organization. Arief Havas Oegrosono, Indonesia's Deputy Coordinating Minister of Maritime Affairs and Resources, said nine or ten countries have already (informally) expressed their interest to join the CPOPC. Oegrosono declined to name these countries because negotiations are still ongoing. However, he did inform that it involves palm oil producing countries from Asia, the Pacific, Africa and Latin America....  Oegrosono stated the CPOPC will formulate a new system that should harmonize existing ones. For sure, this new system will not allow palm oil plantation development in primary forests and peat lands, he added....
http://www.indonesia-investments.com/news/todays-headlines/indonesia-malaysia-set-criteria-for-the-council-of-palm-oil-producer-countries/item6697

25 Feb 2016: Two new green industrial zones and Batam questions

Editor's note: We're hearing from experts that CPOPC is looking at two green industrial zones. One in Malaysia and one in East Kalimantan; and not at the existing palm oil cluster at Maloy. Also, an interesting item on Batam.


Disbanding Batam’s Free Trade Zone: Ending a Dualist Authority? By Adri Wanto and Santi H. Paramitha 25 February 2016; Mr. Kumolo claimed the decision to disband the BPK FTZ was formulated according to Cabinet deliberations. Over the last 10 years, BPK FTZ had lost around Rp 20 trillion (US$1.45 billion) of Batam’s potential tax revenue. The decision to disband it took into account the fact that many investors have moved their businesses away from Batam. Interestingly, Mr. Kumolo spoke optimistically that all problems related to BPK FTZ will be resolved in 2016....he future of BPK FTZ clearly remains in limbo. Pending an official decision, BPK FTZ will continue to function as usual. Mr Nasution urged investors to keep their businesses in operation irrespective of the Minister of Home Affairs’ comments........According to an Indonesian Regional Representative Council (DPD) member, Haripinto Tanuwidjaya, the overlapping authority over the Batam Free Trade Zone has led to a decline in investment in Batam, compared with investments in other parts of Indonesia. It has resulted in the protraction of business licences and become a source of burden to investors...


12 December 2015: FGV/Felda- Eagle high deal back on


Felda Group to buy 37 pct of Eagle High in new deal-Rajawali exec By Cindy Silviana Dec 11, 2015  * Eagle High shares soar 8 pct after Rajawali comments * Most of purchase likely via different Felda unit -Rajawali * Felda Global may take less than 10 pct -Rajawali * Felda Global says still evaluating possible new deal (Adds comment from Felda Global Ventures, share price) JAKARTA, Dec 11 Malaysia's Felda Group still plans to buy 37 percent of PT Eagle High Plantations Tbk in a restructured deal, a managing director of the Indonesian firm's parent company said, sending shares in Eagle High soaring. The companies are finalising the price, Rajawali's managing director Darjoto Setyawan told Reuters in a text message interview. Read more at Reuters http://www.reuters.com/article/felda-glo-vntrs-eagle-high-plnt-ma-idUSL3N14023820151211#SeA8p6J3iTZRoeAp.99

CPO Productivity Expected to Rise Next Year 27 November, 2015 TEMPO.CO, Nusa Dua - The Indonesian Palm Oil Producers Association (Gapki) predicted that CPO production in 2016 would be somewhere between 33 million and 35 million tons comprising 22 million tons for exports and 13 million tons for domestic consumption.Gapki director executive Fadhil Hasan said that CPO prices next year would be around US$580-US$600 per ton. According to Fadhil, the CPO prices have been affected by the implementation of biodiesel mandatory program, drought, crude oil prices and the establishment of the Council of Palm Oil Producing Countries (CPOPC).   “El Nino and forest fires have reduced CPO productivity by 3-5 percent,” Fadhil said when speaking at the 9thIndonesian Palm Oil Conference (IPOC) in Bali on Friday, November 27, 2015. http://en.tempo.co/read/news/2015/11/27/056722854/CPO-Productivity-Expected-to-Rise-Next-Year

PNG to be member of Palm Oil cabal   25 November 2015  Indonesia's Resources Minister Rizal Ramli says the Jakarta-based council can be a "game changer" for an industry under pressure from falling prices and unsustainable farming practices. Rizal says membership will be extended to other producers such as PNG, Brazil, Colombia, Thailand, Ghana, Liberia, Nigeria, the Philippines and Uganda.
...
http://www.radionz.co.nz/international/pacific-news/290492/png-to-be-member-of-palm-oil-cabal


 Malaysia, Indonesia to harmonise palm oil certification  By OOI TEE CHING - 27 November 2015; .... Last week, at the Asean Summit in Kuala Lumpur, Malaysia prime minister Datuk Seri Najib Razak and Indonesia President Joko Widodo announced each country will contribute an initial US$5 million to kickstart CPOPC’s operations.... Yesterday, Indonesia Vice President Muhammad Jusuf Kalla in addressing an international business gathering of 1,200 at the Indonesian Palm Oil Conference (IPOC) 2015, announced Indonesia will be restoring damaged forest and peatland ecosystem. Jusuf announced the government is setting aside Rp50 trillion, for the next five years, to lay the groundwork for rehabilitation. The first phase of restoration will cover two million hectares of forest and peatland. Fadhil acknowledged Jusuf’s remarks that the allocation is equivalent to the annual tax contributed by plantation companies to the government.  In preparation for climate change talks beginning November 30 in Paris, Indonesia and Mal aysia will highlight CPOPC’s long term plans in tackling the region’s haze problem. This will include better dissemination of facts and figures of oil palm planting on peat soil. CPOPC membership, under government-to- government framework, is open to all oil palm cultivating countries such as Brazil, Colombia, Thailand, Ghana, Liberia, Nigeria, Papua New Guinea, the Philippines and Uganda.... http://www.nst.com.my/news/2015/11/114069/malaysia-indonesia-harmonise-palm-oil-certification

Indonesia, Malaysia to try to manage prices together by CK TAN, Nikkei staff writer November 22, 2015  http://asia.nikkei.com/Markets/Commodities/Indonesia-Malaysia-to-try-to-manage-prices-together

30 November 2015: Felda / FGV puts on hold Eagle High deal. Any impact on CPOPC?


Felda puts US$680 million Eagle High stake deal on hold  30 November 2015 1:58 PM; .....Felda Global Ventures Holdings Bhd, the world's No. 3 palm plantation operator, has put on hold a planned US$680 million (RM2.8 billion) purchase in Indonesia after shareholders criticised the deal as too expensive and market conditions deteriorated, sources directly involved with the matter said. - See more at: http://www.themalaysianinsider.com/malaysia/article/felda-puts-us680-million-eagle-high-stake-deal-on-hold#sthash.R9Us5sXk.dpuf

Editor: Some observers point to Felda/FGV - Eagle High being prominently part of the CPOPC announcement. So, the question is whether the new apparent "on hold" status of the deal will impact on any aspect of CPOPC.

 
 

20 October 2015: CPOPC news review - an Indonesia-Malaysia initiative


Editor's note: CPOPC concept  recently announced (agreed 11 October by Najib and Jokowi), and apparently led by Indonesia. Coordinating Maritime Affairs Minister Rizal Ramli, who led the Indonesian delegation at the meeting with Malaysia’s Plantation Industries and Commodities Minister Douglas Uggah in Jakarta. Interesting that the key bureaucracies (Indonesia Min Ag and MPOB) were not lead on the move and seem to be now catching up to something apparently born in high politics; together with a good mix of big business too. FGV-Eagle High were present at the same event (on a industrial estate deal), and big plantations have also been facing up to Singapore pressure over sustainability-traceability gaps amidst the Southeast Asian haze. The haze has been intense for well over a month now (with some predictions of it lasting through to early next year). Question arise over whether there has been a surprising pick up in smallholder land clearance (judging by rise in some key deforestation measures). CPOPC also comes at the same time as IPOP dilution and a sudden leadership change at ISPO. Palm oil circles noting this unusual contemporaneous flurry of high level business-political shuffles. One key question is this: is CPOPC going to be a price cartel? MITI Minister Mustapa weighs in it is not for price control (while Uggah urges USA to remove Malaysia from forced labour list).

Had a long chat on Friday with a top financial analyst. We were trying to figure out if these moves are to likely to improve the medium or long-term market position palm oil. The analyst has been worried for some time about the deteriorating market perception of palm oil - on it losing markets on poorer perceptions, including middle-income consumers switching away. Price did not come into our discussion. I think we have to watch for good implementation of ISPO whose re-regulation would help alongside upgraded and added efforts on the haze (an annual bad press that clings to palm oil). Because commercial issues are so entangled with sustainability-traceability, some specialists also worry about delays to real action, including strong upgrade of ISPO or implementation of Indonesia regulations. The downplay of regulations for voluntary programmes is puzzling. Surely it should be voluntary programmes with regulations fully complied? Or is it time for a discussion on regulations and business compliance as well as smallholder compliance?


News links:

So, what will it actually do?

1. Promote sustainability? Maybe not? What about ISPO implementation? Regaining policy sovereignty over green trade barriers?

Bold move in palm oil — Jakarta Post Saturday October 17, 2015; OCTOBER 17 — The devil is in the details. This saying is quite relevant for Indonesian and Malaysian officials making preparations for the establishment of a cartel-like organisation called the Council of Palm Oil Producing Countries (CPOPC) that both governments agreed on in Jakarta early this month. It was the first time that both countries, which control about 85 per cent of global palm oil production but which have so far been competing fiercely against each other in the international market, agreed on concrete cooperation in controlling the palm oil market, which has been in a slump since last year. Coordinating Maritime Affairs Minister Rizal Ramli, who led the Indonesian delegation at the meeting with Malaysia’s Plantation Industries and Commodities Minister Douglas Unggah in Jakarta last week, said the CPOPC would jointly promote the marketing of palm oil and its products, conduct palm oil research and development and harmonize the principles and criteria used for their respective certification of sustainable palm oil. - See more at: http://www.themalaymailonline.com/what-you-think/article/bold-move-in-palm-oil-jakarta-post#sthash.49WH24qx.dpuf

New palm oil council would drop "no deforestation" pledge - Indonesia JAKARTA  |  By Augustinus Beo Da Costa; Oct 14 A new palm oil producer grouping being set up by Indonesia and Malaysia would replace "no deforestation" pledges made by major palm companies in favour of a joint set of standards proposed by the two countries, an Indonesian minister said late Tuesday. Indonesia wants big palm oil companies to row back on the historic pledges made at a climate change summit last year, arguing that they are hurting smallholder producers who cannot afford to adopt sustainable forestry practices. Indonesia is the world's biggest producer and exporter of palm oil producer, a key driver of economic growth, and legions of smallholders account for about 40 percent of its palm output. "Indonesia and Malaysia have agreed to harmonize and combine our two standards," Indonesia's chief natural resources minister Rizal Ramli told parliament. "This is an example of how to fight for our sovereignty. We are the biggest palm oil producer. Why (should) the consumers from the developed countries set the standard for us as they want?" http://www.reuters.com/article/2015/10/14/indonesia-palm-ipop-idUSL3N12E22820151014

Sarawak rejects trade barriers  By OOI TEE CHING - 17 October 2015 @ 11:00 AM; .... Wilmar’s refinery in Bintulu, Sarawak, was the main buyer from 41 palm oil mills across the state, absorbing 1.7 million tonnes of CPO, or half of the state’s production. In sourcing CPO to feed its refinery, the Wilmar-Unilever pledge dictated to planters in Sarawak that starting January, it will stop buying oil from estates where there are allegations of land grabbing from natives. The pledge will also lead to a halt in the sourcing of palm oil from farmers who have planted their trees in areas of “high carbon stock” and peat swamp. In an interview at his longhouse in Silas Estate near Bintulu, village head Meikle Ding spoke about his people’s sentiment.  When asked if the native customary rights (NCR) landowners had seen any tangible benefits from the Wilmar-Unilever pledge, Meikle replied: “It looks protective of us natives, but in reality our genuine business partner is Ta Ann Plantation.” ..... Just like the soyabean and rapeseed farmers in Western countries, Meikle said his people were equally deserving of their right to sell their palm oil without trade hindrance. He noted that his people felt Wilmar and Unilever’s pledge was restrictive of Sarawak’s freedom to export to an open market. “The Wilmar-Unilever pledge dictating to planters in Sarawak to comply with it by the end of the year is discriminatory. We prefer a meaningful pledge that states “Yes” to high palm oil prices, “Yes” to our right to prosperity and “Yes” to business growth,” he added. Meikle also questioned whether the Asia-Pacific Economic Cooperation (Apec) and Trans-Pacific Partnership (TPP) agreements would address discriminatory and oppressive business dictates from buyers like Wilmar and Unilever. His query has struck a poignant chord on global edible oils trade politics....  Earlier this week, Indonesia and Malaysia agreed to harmonise and combine palm oil certification standards. Indonesia’s Chief Natural Resources Minister Rizal Ramli told the Parliament that it was time for Indonesia and Malaysia to fight and regain sovereignty on their own turf.... http://www.nst.com.my/news/2015/10/sarawak-rejects-trade-barriers


2. Is it about price? Yes. No?

Mier lauds move to set up palm oil council, on urgency of price stabilising mechanism   By Chester Tay / The Edge Financial Daily   | October 15, 2015 : 10:19 AM MYT; KUALA LUMPUR: The setting up of the intergovernmental Council of Palm Oil Producing Countries (CPOPC) to regulate the edible oil’s production, stocks, and market prices is a step in the right direction, according to the Malaysian Institute of Economic Research (Mier). This is because there is an urgency for both Malaysia and Indonesia to introduce a price stabilising mechanism for crude palm oil (CPO), said the research institution’s deputy director Dr Ahmad Fauzi Puasa in an interview with The Edge Financial Daily last week. “Malaysia and Indonesia need to have a round-table talk to figure out a way to implement this price stabilising mechanism, before it (CPO price) gets even more volatile,” Ahmad Fauzi said. Earlier this month, both countries agreed to spearhead the establishment of the CPOPC. The idea was formally agreed on between Prime Min ster Datuk Seri Najib Razak and Indonesian President Joko Widodo during a meeting at the Presidential Palace in Bogor on Sunday. “The formation of the CPOPC is the biggest achievement in the bilateral relations between Malaysia and Indonesia, and will bring greater benefit to the wider palm oil industry,” Najib said on his Twitter account on Tuesday. The two nations collectively account for 85% of global palm oil production. http://www.theedgemarkets.com/my/article/mier-lauds-move-set-palm-oil-council-urgency-price-stabilising-mechanism

Palm Oil Council not to Control Price, Malaysia Says 14 October, 2015 | 13:32 WIB; "CPOC is not formed to increase [oil palm] prices, because it's not easy to compete against a market. It could work for a day, but not for a long time," Malaysian International Trade and Industry Minister Dato Sri Mustapa Mohamed said in an interview on Tuesday, October 13, 2015 in Jakarta. Mustapa explained that the CPOC will be formed to provide benefits for both countries, particularly in the plantation sector. Despite not being aimed at controlling prices, Mustapa hoped that the palm oil prices must be set at a reasonable level. Mustapa added that the two countries must have an aligned understanding in terms of regulations on palm oil utilization for biodiesel. Indonesia earlier had enforced biodiesel B15, which would be increased to B20. Meanwhile, Malaysia had just enforced biodiesel B5 and would increase it to B7. "Malaysia had not planned to enforce B15 yet. We had just started with B5, and now B7. This must be followed up by the two governments," Mustapa said. http://en.tempo.co/read/news/2015/10/14/056709371/Palm-Oil-Council-not-to-Control-Price-Malaysia-Says


3. Labour standards?

US urged to remove Malaysian palm oil from forced labour list 16 October 2015; LOS ANGELES: Malaysia is appealing to the US Labour Department to remove its palm oil from the “List of Goods Produced by Child or Forced Labour”, Plantation Industries and Commodities Datuk Amar Douglas Uggah said. Among the criteria used by the department to assess child or forced labour was the withholding of passports of foreign workers and payment of low wages, he said. “The Government has undertaken an independent study, covering 68 plantations nationwide, and it showed that incidences of this nature are negligible. “Thus, it is unfair for the department to list the Malaysian palm oil industry alongside others,” he added. Uggah said this in his keynote address at the Global Oils and Fats Forum USA 2015, here on Wednesday.
http://www.thestar.com.my/Business/Business-News/2015/10/16/US-urged-to-remove-Malaysian-palm-oil-from-forced-labour-list/?style=biz


Setting it up - a real start in 2015 since bilateral effort first mooted in 2006?

Indonesia, Malaysia to set up palm oil council Published: 3 October 2015 7:11 PM; ... The organisation, which is going to be called Council of Palm Oil Producer Countries, will coordinate palm oil production, manage stocks and stabilise palm prices, Indonesia's Coordinating Minister for Maritime Affairs Rizal Ramli said in a news conference with Malaysian officials today.... Ramli led an Indonesian delegation to visit Malaysia at the end of August to discuss about the plan, during which an agreement for further cooperation was reached. The two governments plan to establish the council after Indonesian President Joko Widodo meets his counterpart Malaysian Prime Minister Najib Razak, Ramli said. Previous attempts to develop better palm relations between the two countries have had limited success. - See more at: http://www.themalaysianinsider.com/business/article/indonesia-malaysia-to-set-up-palm-oil-council#sthash.LEEhLf9h.dpuf

M’sia, Indonesia hold bilateral meeting on palm oil industry October 6, 2015; KUCHING: The bilateral meeting between the governments of Indonesia and Malaysia on strengthening cooperation in the palm oil industry was held in Jakarta on Saturday, October 3 2015. The Malaysian delegation was led by Datuk Amar Douglas Uggah Embas, Minister of Plantation Industries and Commodities together with Datuk Razali Ibrahim, Deputy Minister in the Prime Minister’s Department. The Indonesian delegation was led by Bapak Rizal Ramli, Coordinating Minister of Maritime Affairs and Resources together with Bapak Sofyan Djalil, Minister of National Development Planning, Ibu Musdalifah, Deputy Coordinating Minister of Economy.  This was a follow-up to the meeting held on August 27, 2015 in Kuala Lumpur as has been directed by the two Heads of Government. This bilateral meeting was also joined by Sarawak Oil Palm Plantation Owners Association (Soppoa), Malaysian Palm Oil Association (MPOA), Malaysian Palm Oil Board (MPOB), Malaysian Palm Oil Council (MPOC), Indonesia Palm Oil Association (GAPKI) and Indonesia Palm Oil Fund (BPDP Sawit).... Read more: http://www.theborneopost.com/2015/10/06/msia-indonesia-hold-bilateral-meeting-on-palm-oil-industry/#ixzz3p63ZT6ur

Najib welcomes historical move to set up palm oil council with Indonesia Sunday October 11, 2015; ....The plan to set up a Council of Palm Oil Producer Countries by Malaysia and Indonesia is an indication of the success of bilateral relations, said Prime Minister Datuk Seri Najib Razak. He said the council, which was proposed by both countries in 2006, has become a reality when a consensus was reached on the structure of the organisation which would operate from here....          
- See more at:
http://www.themalaymailonline.com/malaysia/article/najib-welcomes-historical-move-to-set-up-palm-oil-council-with-indonesia#sthash.dGuCvu2T.dpuf