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Last Updated: 08 February 2024

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Indonesia and Malaysia, the world's leading producers and exporters of crude palm oil (CPO), have openly challenged the European Union Deforestation Regulation (EUDR). They believe the implementation of this regulation could be detrimental to their economies. The bone of contention lies with the potential restrictions the EUDR could place on the import of CPO into European Union countries, which is a significant source of revenue for both nations.

The Diplomatic Front

Malaysian Foreign Minister Mohamad bin Hasan has been vocal about his country's concerns. He suggested that the EUDR is enacted with ulterior motives, primarily to favor other vegetable oil commodities within the European market. This, he emphasized, is not in good faith and does not align with fair trade practices.

His Indonesian counterpart, Foreign Minister Retno Marsudi, echoed these sentiments. She conveyed that both nations had made their shared concerns clear during the 24th ASEAN-EU Ministerial Meeting held in Brussels. The unified stand of these major palm oil-exporting countries reflects their determination to protect their economic interests.

Seeking a Solution

Musdhalifah Machmud, a representative from the Coordinating Ministry for Economic Affairs in Indonesia, highlighted that the government is looking to the Ad Hoc Joint Task Force (JTF) on EUDR for a concrete solution. One such proposed solution is a delay in the regulation's implementation. This, they hope, will provide a buffer for smallholder plantations and mitigate the potential economic fallout.

The united front presented by Indonesia and Malaysia was further solidified during the 2nd meeting of the Ad Hoc JTF on EUDR held in Putrajaya, Malaysia. In a significant move, Indonesia requested a delay in the implementation of the EUDR. This request underscores the earnest efforts of both countries to safeguard the interests of their respective economies, particularly the smallholder plantations that heavily rely on CPO exports.

https://bnnbreaking.com/politics/indonesia-and-malaysia-challenge-eu-deforestation-regulation

Sumber : The People’s Network

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Last Updated: 08 February 2024

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PUTRAJAYA (Feb 7): The Ministry of Plantations and Commodities (KPK) will take stern action against any party involved in discriminatory or negative labelling of palm oil.

In a statement on Wednesday, the ministry said it takes the issue seriously and will take strict action in accordance with laws and regulations against importers, traders, sellers, and related parties who commit such offences.

"The Multi-Agency Enforcement Force (MAEF) conducted inspections at several premises in Selangor under the Trade Descriptions (Prohibition of Use of Statement, Expression or Indication) (Oil Palm Product and Palm Oil Goods) Regulations 2022 on Jan 26.

The penalty for a violation of the above regulations is a fine of up to RM220,000 or imprisonment of up to five years.

“During the inspections, it was found that some food products in these establishments were conspicuously labelled with discriminatory labelling against palm oil (DLAPO), for example with statements such as 'no palm oil' or 'without palm oil',” it said.

These shops included those selling local products such as baby food and imported food labelled DLAPO.

It is important to note that some importing companies placed stickers on the investigated products labelled "Imported and distributed by".

"During the inspections, the shop managers were informed of the ban on the use of the label and asked to clear the shelves until further action is taken.

"Warnings have also been issued to the involved premises to stop selling products with discriminatory labeling against palm oil and to remove existing products from the market immediately," said the statement.

KPK said follow-up inspections will be conducted to ensure the same problems are not repeated and warnings will be issued to prevent enforcement actions by MAEF that could lead to fines and product seizures.

 According to KPK, such labelling techniques give consumers the negative impression that the use of palm oil is harmful to health if the product contains palm oil.

"Apart from that, the action also damages the good reputation of palm oil industry in the country and violates the principles of fair and transparent trade," it said.

https://theedgemalaysia.com/node/700193

Sumber : The Edge Malaysia

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Last Updated: 08 February 2024

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KUALA LUMPUR, Feb 7 ― The Ministry of Plantation and Commodities intends to make Egypt an essential part of its plan to expand Malaysia's palm oil exports to the African continent through the Suez Canal Economic Zone.

Its minister Datuk Seri Johari Abdul Ghani said economic cooperation in the palm oil sector between Malaysia and Egypt was discussed in his meeting with the Egyptian Ambassador to Malaysia Ragai Tawfik Nasir on Monday at his office.

"Egypt is a strategic country for our palm oil industry because palm oil makes up almost 90 per cent of Malaysia's exports to Egypt.

"Egypt has a population of more than 110 million people,” he said in a post on X today.

He also said that both countries are exploring a partnership in palm product marketing strategies involving government-linked companies along with the cooperation of private players in both countries.

In addition to Malaysia’s strong position as palm oil exporter to the country, Egypt is strategically located to be a potential gateway to other North African countries, he said. ― Bernama

https://www.malaymail.com/amp/news/malaysia/2024/02/07/johari-ghani-malaysia-to-work-with-egypt-to-expand-palm-oil-exports-to-africa/116822

Sumber : Malay Mail

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Last Updated: 07 February 2024

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KUALA LUMPUR, Feb 6 ― The Federal Land Development Authority (Felda) has an important role in ensuring the sustainability of Malaysia's oil palm industry so that the fate that befell the country’s rubber industry will not be repeated here, Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said.

He said Felda, being the largest owner of plantation land in the country at 800,000 hectares needs to fully utilise its strength by increasing production and focusing on the downstream sector.

 "Try to imagine. If we are not focused on the downstream industry for the next 15 to 30 years, the palm oil industry will go down the same path as the rubber industry. I don't want to see that.

"We were the largest rubber producer in the world at one time. Today, we are the main producer of rubber products but we import natural rubber from Vietnam and Thailand because we do not have enough of it.

The strange thing is, we have 420,000 ha of rubber trees belonging to 290,000 smallholders,” he said in his keynote speech at the Felda 2024 Symposium here.

Malaysia produced 19.5 million tonnes of oil palm in 2013 while Indonesia produced 26 million tonnes. Malaysia’s production dropped to 18.5 million in 2023 while Indonesia’s grew its output to 46.5 million, he said.

Johari said Indonesia uses half of it for biodiesel production while Malaysia exports 15 million tonnes. He said the country's main oil palm players produced an estimated 20 tonnes of fresh fruit bunches (FFB) on a per hectare basis and suggested Felda raise its production to more than its 2023 production of 16.49 tonnes per hectare.

Therefore, he said it is important for Felda to consolidate its land assets and complete its infrastructure as best as possible.

As an example, if Felda were to produce 18 tonnes of FFB per hectare, its total yield would rise to 14.4 million FFB and the agency could become the largest producer with 2.8 million tonnes of crude palm oil (CPO), he said.

"Imagine, if the price of palm oil is RM4,000 per tonne, and the estimated cost is RM3,000, we make a RM1,000 profit. Overall, we will make a profit of RM2.8 billion.

"So, we have to learn from Felda's success first, and we put together a strategy for the next 20 to 30 years. I believe the 800,000 hectares belonging to Felda, if we are good at it, the fifth and later generation will be proud to be part of Felda,” said Johari.

He also envisioned Felda settlers to organise their land into large clusters and to fully operate their assets to produce downstream products.

"So, this oil palm industry is very important to the country. If Felda wants to be socially responsible, it is only 'sustainable' if it can make a large profit. No (company) can make a social contribution to society if it does not generate income,” he said. ― Bernama

https://www.malaymail.com/amp/news/malaysia/2024/02/06/johari-ghani-felda-must-ensure-oil-palm-industry-does-not-share-same-fate-of-rubber/116641

Sumber : Malay Mail