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MINISTRY OF
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No. 15, Level 5-13, Persiaran Perdana, Presint 2, 62654 Wilayah Persekutuan Putrajaya
BERITA SAWIT 2024
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Smallholders are instrumental in Southeast Asia’s palm oil production. Indonesia alone, they cultivate roughly 41 per cent of the land dedicated to oil palm, while in Malaysia, that number is at least 27 per cent. Globally, smallholders are responsible for roughly 35 per cent to 40 per cent of the world’s total oil palm plantations. Therefore, as global concerns about sustainability increase, smallholders play an important role in sustainability initiatives.
However, the path to sustainability is not always smooth for smallholders. Meeting certification standards, like those set by industry watchdog the Roundtable on Sustainable Palm Oil (RSPO), can be complex and costly for those with limited resources. Stringent criteria and documentation requirements can be overwhelming. Regulations such as the European Union Deforestation Regulation add another layer of complexity.
Furthermore, upgrading equipment, improving land management and transitioning to more environmentally friendly methods all require capital that many smallholders simply do not have. Banks and financial institutions might be hesitant to extend credit due to perceived risks like limited financial history or lack of collateral.
Beyond financial limitations, a lack of technical knowledge also poses a crucial challenge. Sustainable oil palm harvesting requires a broad understanding and implementation of best practices in areas such as soil management, fertilisation, pest control, efficient resource use and proper harvesting techniques. Without access to training services, smallholders struggle to acquire this crucial knowledge, hindering their ability to adopt sustainable practices and keep up with evolving certification requirements.
Smallholders also face economic challenges due to their weak position in the supply chain. They often end up accepting lower prices for their fruit, making it difficult to generate the capital needed for sustainable practices.
Further compounding the issue is the volatile nature of palm oil prices. This creates a vicious cycle, where a limited income restricts their ability to invest in sustainability, which can ultimately hurt their long-term profits and yields.
Governments must play a progressive role by implementing targeted support programmes tailored to the specific needs of smallholders. Financial support, such as subsidies or low-interest loans, would help smallholders transition to sustainable practices. Additionally, comprehensive training programmes on best agricultural practices, certification requirements and responsible land management are essential.
Supporting land rights and cooperative structures for smallholders can further empower them.
Indonesia has been using export levies to support smallholders, which is a positive step. However, a more comprehensive approach might be necessary to ensure its range is wide enough.
Certification bodies such as the RSPO also have a crucial role to play in making sustainability more inclusive for smallholders. This could involve simplifying the application process, reducing costs associated with certification and creating group certification options that allow smallholders to pool resources and expertise.
The RSPO’s smallholder strategy is a commendable initiative, but its current scope needs significant growth to effectively serve a wider range of smallholders. Additionally, collaboration among different certification organisations to harmonise standards might help reduce the burden on smallholders and streamline the certification process.
Technology has the potential to be a game changer for smallholders in the oil palm industry, whether it be through mobile apps that give agricultural advice in local languages, digital platforms connecting smallholders directly to buyers or remote sensing technologies that share data that can help with better land management. Of course, not everyone has a high-end smartphone or reliable internet access.
This is where the democratisation of technology comes in. There are user-friendly tools being developed that require minimal technical expertise. Think of simple interfaces with SMS updates. Additionally, exploring alternative methods like community radio broadcasts or local extension worker training programmes can ensure everyone benefits from technological advancement.
Consumer education is another powerful tool to help push the change to sustainable oil palm cultivation. Educating consumers can empower them to make informed choices.
However, systemic change is also crucial. Non-governmental organisations, the media, universities and responsible companies all have a role to play when it comes to raising awareness and advocating for fair and sustainable practices throughout the supply chain. That also goes for supporting the inclusion of smallholders.
The path to sustainable oil palm in Southeast Asia is not an easy one, but there is an inclusive path that we must undertake. Some researchers predict that smallholders will double their production capacity over the next decade. As we strive for sustainability, we must ensure that we’re not leaving them behind.
https://www.scmp.com/opinion/asia-opinion/article/3270183/push-sustainable-palm-oil-isnt-going-far-enough
Sumber : South China Morning Post
SAWIT : Deputy minister urges palm oil industry to repurpose residuals for sustainable aviation fuel
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KUALA LUMPUR (July 16): The palm oil industry should explore repurposing residuals as a crucial feedstock for sustainable aviation fuel (SAF), moving beyond traditional uses of palm oil, said Deputy Investment, Trade and Industry Minister Liew Chin Tong.
He emphasised the need for the palm oil industry, alongside other non-aviation sectors, to contribute to positioning Malaysia at the forefront of the sustainable fuel landscape.
“This is also an opportunity for us to connect Malaysian industries horizontally, so that not only are we supplying the global supply chain, but also creating more domestic innovations and products that will eventually be of relevance globally,” he said during the opening remarks at the MyAero Sustainable Aviation Symposium 2024 today.
Liew highlighted the importance of both vertical integration within Malaysian industries and horizontal linkages between sectors to shape the aviation industry’s future.
He also referenced the Malaysia Aerospace Industry Blueprint 2030, detailing 41 initiatives expected to generate RM55.2 billion annually and create 32,000 high-tech jobs by 2030.
“We hope to establish Malaysia as the aerospace hub in the region and the global community, and to build synergy with neighbouring states through promoting supply chain development and the use of sustainable alternatives such as sustainable energy fuel, electricity and hydrogen-based energy,” he said.
Meanwhile, National Aerospace Industry Corporation Malaysia (Naico) chief executive officer Prof Shamsul Kamar Abu Samah highlighted Malaysia’s industry environmental, social and governance (iESG) framework as pivotal for aerospace firms transitioning to sustainable practices.
“This includes initiatives such as developing cleaner technologies, improving fuel efficiency and investing in sustainable manufacturing processes.
“Collaborative partnerships between governments, aerospace companies and research institutions are essential for driving these innovations forward and achieving shared environmental, social and governance goals while maintaining economic viability and competitiveness in the global market,” he added. – Bernama
https://www.theborneopost.com/2024/07/16/deputy-minister-urges-palm-oil-industry-to-repurpose-residuals-for-sustainable-aviation-fuel/
Sumber : The Borneo Post
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KUALA LUMPUR (July 16): Crude palm oil (CPO) futures for the active months in 2024 are forecast to average between RM3,850 and RM4,000 per tonne on Bursa Malaysia, according to the Malaysian Palm Oil Association (MPOA).
In a statement on Monday (July 15), the association said this projection indicates a slight increase compared to the RM3,800 per tonne average witnessed throughout 2023, reflecting ongoing market dynamics and supply-demand balances in the palm oil sector.
MPOA said that in June 2024, CPO production figures from both the MPOA members and the Malaysia Palm Oil Board (MPOB) mirrored each other closely, with MPOA reporting 1.60 million tonnes and MPOB slightly higher at 1.61 million tonnes.
It said this represented a 5% decrease month on month but a robust 12% increase year on year.
The group said market sentiment points towards a potential total CPO production in 2024 exceeding 19 million tonnes based on Malaysia's first half of 2024 performance, which saw a notable 10% year-on-year increase to 8.88 million tonnes compared to 8.08 million tonnes last year.
It said this growth was predominantly driven by a substantial 19% rise in Peninsular Malaysia, offsetting a 5% decline in Sabah.
However, MPOA said concerns may arise for the second half of 2024, as reduced rainfall in the first half may impact future FFB and corresponding CPO production.
It said the ability of Sabah to bolster production in the latter half of the year will be pivotal in determining if the elusive 19 million-tonne mark can be surpassed.
Outgoing MPOA chief executive Joseph Tek Choon Yee highlighted the sector's distinctiveness, operating primarily in rural settings and relying on and being exposed to natural elements like rainfall and sunlight — and not in any assembly lines under a roof.
He said the oil palm trees are biologically robust and perennial, enduring for up to 25 years once planted.
“However, the sector faces unique challenges: crude palm oil (CPO) is a commodity traded at market prices, making producers price-takers rather than price-makers.
“Consequently, the industry cannot simply pass on rising costs to consumers. Investments are long-term, with returns fluctuating based on palm product prices,” he said.
Tek said the initial gestation period involves around three years with no income, followed by replanting only after more than two decades. The industry remains predominantly labour-intensive, relying heavily on foreign workers due to locals generally not aspiring for the low-skilled "3D" jobs set against no game-changing mechanisation breakthroughs as yet.
“Compounding these challenges are rising production costs, with the national average for CPO currently standing at RM2,800 to RM3,000 per metric ton,” he said.
https://theedgemalaysia.com/node/719148
Sumber : The Edge Malaysia
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BINTULU (July 15): Sawit Permai Enterprise Sdn Bhd is making waves with their innovative ‘Madani MPOB F5 Improved’ fertiliser at the ongoing Sarawak Agrofest (SAF) 2024, taking place at the Old Bintulu Airport site until July 22.
Managing director Yeong Kui Po said the Madani MPOB F5 Improved fertiliser, part of the Malaysian Palm Oil Board (MPOB) F5 series, represents a significant leap forward for the country’s palm oil industry.
He added that the MPOB F5 series fertilisers are produced under licence by Briar Resources Sdn Bhd.
“Madani MPOB F5 Improved fertiliser represents a revolutionary product with state-of-the-art technology formulated by MPOB utilising Briar’s Advanced and Sustainable Series for Excellence (BASE) technology,” he told The Borneo Post.
Yeong added that the primary objective of Madani MPOB F5 Improved fertiliser is to reduce agricultural input costs, ensure consistent yields, strengthen knowledge sharing of the latest fertiliser technology, and enhance the performance of the Malaysian palm oil industry.
“Our close collaboration with MPOB aims to increase yields for small-scale palm oil farmers while reducing the presence of low-quality fertilisers in the market.
“With competitive pricing for Madani fertilisers, small farmers can enjoy significant economic benefits.
Consistent fertiliser application will not only generate higher incomes but also strengthen the financial stability of Sarawak,” he said.
Central to Sawit Permai’s offerings is BASE technology which significantly enhances crop yields through advanced nutrient delivery systems and optimised formulations, so as to improve nutrient absorption leading to healthier and more robust growth.
“BASE technology not only boosts productivity but also ensures sustainable practices by minimising chemical runoff and preserving soil health.
“By outperforming conventional fertilisers, BASE sets a new standard for agricultural excellence, achieving superior yields while promoting environmental stewardship,” said Yeong.
At Sarawak Agrofest 2024, visitors can explore Sawit Permai’s booth and witness firsthand the impact of BASE technology.
https://www.theborneopost.com/2024/07/15/sawit-permai-unveils-innovative-fertiliser-at-saf-2024/
Sumber : The Borneo Post
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Deputy Minister of Plantation and Commodities Datuk Chan Foong Hin flanked by (from left) Malaysian Palm Oil Council CEO Belvinder Sron, Kuay Cheow Kwee from TPOZ, MPC senior undersecretary for palm oil and sago industries division Severinus Tukah, Kow Tiat Yong (KLK Oleo), Malaysian consul general in Shanghai Syed Farizal Aminy Syed Mohamad, Ku Kok Peng (KLK), Malaysian Palm Oil Board director general Datuk Dr Ahmad Parveez Ghulam Nadir and Xia Jian Jun (TPOZ).
SHANGHAI (July 11): Deputy Minister of Plantation and Commodities Datuk Chan Foong Hin on Wednesday officiated the launch of Kuala Lumpur Kepong Bhd's (KL:KLK) new high-purity fatty acids and glycerin plant in Zhangjiagang, Suzhou located in the Jiangsu province of China, bringing the facility’s annual processing capacity to 500,000 tonnes.
The oleochemical complex located on 58 acres of the third-tier city that is about 130km away from Shanghai is owned and operated by KLK’s wholly-owned Taiko Palm-Oleo (Zhangjiagang) Co Ltd (TPOZ). The expansion makes TPOZ one of the largest and most technologically advanced oleochemical production plants in China.
“TPOZ’s expansion is commendable and it’s important to highlight a Malaysian success story in China because this is a very competitive market. Not many companies could go overseas but a lot of companies that went abroad are from the plantation sector. I can safely say that Malaysia is the pioneer for this palm oil industry,” Chan said at the ribbon cutting ceremony on Wednesday.
TPOZ was incorporated in January 2004 while its first plant was commissioned in 2006.
It produces fatty acids, glycerine, soap noodles, triacetin and fatty acid esters. The products are used in various sectors such as daily chemicals, engineering plastics, rubber, textiles, paper, pharmaceuticals and coatings.
“Our journey began with the vision of becoming an integrated player in the oils and fats sector, both locally and internationally. The presence of our facility in Zhangjiagang has been pivotal in realising this vision. It has enabled us to cater to a growing market, catering to both domestic consumption and international export,” said Kow Tiat Yong, deputy CEO of KLK OLEO, KLK’s oleochemicals manufacturing division.
“Our objective has always been clear: to enhance our production capacity and seize the opportunities presented by the burgeoning market in the People’s Republic of China, a country with a vast and dynamic economy,” he added.
KLK declined to disclose the capital expenditure for the new plant, saying it needed to preserve its position in China’s highly competitive oleochemical market.
Chan was in Shanghai for a working visit to promote Malaysian palm oil and pepper.
The working visit was organised by the ministry, in collaboration with Palm Oil Research and Technical Service Institute of Malaysian Palm Oil Board.
https://theedgemalaysia.com/node/718549
Sumber : The Edge Malaysia