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MPOA News

Green Concerns or Trade Barriers?

By Ooi Tee Ching - Business Times (Dec. l, 2009)

At the Roundtable on Sustainable Palm Oil (RSPO) conference last month, environment activist Wetlands International called for an address of "the alarming emissions from forest and peat swamp areas' conversion into oil palm plantations". The Netherlands-based non-governmental organisation (NGO) alleged that "the continuous emissions caused by drainage of carbon rich tropical peatsoil in Indonesia and Malaysia are enormous." At the end of the meeting, Wetlands lamented that its attempts to insert a Greenhouse Gas Emission criterion had been frustrated by members representing Indonesian and Malaysian oil palm planters.

In an interview with Business Times, Malaysian Palm Oil Association chief executive Datuk Mamat Salleh shed light on the ulterior motive and double standards deployed by the NGOs to the detriment of the global palm oil industry. Under RSPO, palm oil has to be sustainably-produced. On the other hand, other vegetable oils like canola and soyaoil only need to be responsibly-produced. "Did you know that the term 'responsibly-produced' allows for genetically modified oilseeds?" Mamat questioned.

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RSPO Still Intact Despite Greenhouse Gas Contention

By Hanim Adnan – The Star (Saturday Nov. 21, 2009)

Malaysian Palm Oil Association (MPOA), which represents major oil palm oil companies such as Sime Darby Bhd, Kuala Lumpur Kepong Bhd, IOI Corp Bhd and Felda, wants the RSPO to focus on sustainable production of palm oil for “food” use to meet the “3Ps” – profit, people and planet – and not on GHG emissions by the EU legislations meant for biofuel and energy sector.  MPOA chief executive Datuk Mamat Salleh says the EU legislation conveniently left out one “P” – profits – or economic sustainability where the heavily-subsidised biofuel and feedstock in the EU was still considered as sustainable product.

The burden of implementation and costs is on the producers and NGOs will just demand for it while manufacturers do not purchase the certified RSPO palm oil produced.He says producing members of RSPO feel strongly that the GHG criteria should not be imposed on palm oil used for food since no such requirement is needed for other food. “If not, the planting of rice and rearing of livestock have to be checked for generating GHG emission.

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Negative Implications of GHG Emission Criteria

Association : Proposal will stop new expansion & growth

By Hanim Adnan, The Star (6 Nov. 2009)

PETALING JAYA: The decision by oil palm planters to reject the proposal by the Roundtable on Sustainable Palm Oil (RSPO) to adopt the greenhouse gas (GHG) criteria into its existing principles and criteria (P&C) reflects their stance on the need to fully understand the mechanics of the GHG proposal and its implications on the industry.

RSPO is an international body which aims to develop and implement global standards for sustainable palm oil.

“Should the GHG criteria be adopted into RSPO’s P&C, it will only allow very low tonnage of carbon emission for every tonne of crude palm oil (CPO) produced,” said Malaysian Palm Oil Association (MPOA) chief executive Datuk Mamat Salleh.

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ABC Industry Forum Dinner

The Chairmen and CEOs of the respective organisations in the palm oil industry ,namely, MPOA, MPOB and MPOC held an informal meeting  22 October 2009  to discuss on the present situation and challenges faced by the Malaysian palm oil industry. It was agreed that the ABC Industry Forum will be revived among the three organisations so that it can be coordinated in approaching the issues faced by the industry. It will be held on quarterly basis with the Secretariat to be rotated among the organizations. Among the matters discussed at the meeting are on the market and domestic challenges confronted by the Malaysian palm oil industry.

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The Need for Strategic Policy on Foreign Workers

At present, the foreign workers in the oil palm industry are being managed by different Ministries and Agencies; and the industry is facing problems in recruiting and employing them. Recently, their supply seems to be reduced gradually (e.g. shortage of harvesters which affect FFB production). The MPOA Council Meeting on 14 October 2009 agreed on the urgent need to prepare a comprehensive paper to propose on the policy of foreign workers to be submitted for the consideration of the relevant authority.

The paper will stress that due recognition should be given to the significant and strategic role of the palm oil industry in the Malaysian economy in providing export earnings, economic security and broad based participation by rural population.

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