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BERITA AGRIKOMODITI 2024

Details: Last Updated: 20 March 2024; Hits: 1821

A World Trade Organization (WTO) panel ruled earlier this month on a complaint brought by Malaysia against the European Union over the bloc's plans to phase out the import of palm oil as biofuel because of environmental concerns.

Malaysia, the world's second largest producer of palm oil after Indonesia, brought a case to the WTO in early 2021 against the EU, France and Lithuania.

The Southeast Asian country contested that the EU had violated international trade rules in its policy to phase-out the import of palm oil as a biofuel due to deforestation and emissions risks under the EU's second Renewable Energy Directive (RED II).

Indonesia also filed a case with the WTO but asked for it to be suspended a day before the result of Malaysia's case was announced.

What was the WTO decision based on?

The three-person panel voted by two-to-one in favor of the EU's ability make rules against imports of crop-based fuels for environmental reasons.

However, it also said that the EU was at fault for how it had prepared and published its policy, which amounted to "arbitrary or unjustifiable discrimination" against Malaysia.

Much of this revolved around how the EU defined its assessment of emissions, along with indirect land use change (ILUC), which measures the impact of diverting agricultural land previously designed for food production to biofuel production,

The WTO panel found the EU's study on the ILUC risk of palm oil, using data from 2008 and 2016, was potentially outdated.

It also said an arbitrary choice was made to assess emissions from palm oil production over a 10-year period, when palm trees usually survive for up to 30 years.

"There are deficiencies in the design and implementation of the low ILUC-risk criteria," the WTO panel noted in a 348-page report published on March 5.

EU relations with Malaysia, Indonesia at risk

One dissenting panelist also offered greater support to Malaysia's appeal that the EU policy is protectionist, since it is accused of singling out palm oil while overlooking the environmental impact of biofuels produced within Europe, such as rapeseed.

Chris Humphrey, executive director of the EU-ASEAN Business Council, said that the WTO ruling will be "viewed by both the EU and Malaysia as a victory given the mixed outcome."

"While we await the delayed WTO ruling on Indonesia's complaint on palm oil, it is clear that dialogue between the EU and these key ASEAN partners is the only way forward in dealing with the concerns that both Indonesia and Malaysia have," he added.

The EU Directorate-General for Trade said in a statement that the bloc "intends to take the necessary steps to adjust the Delegated Act."

The European Commission did not respond to requests for comment.

Daniel Caspaty, an MEP and chair of the European Parliament's committee on relations with ASEAN states, told DW that the WTO panel's findings "marks a significant moment in the debate on trade policy and environmental protection."

"This decision will undoubtedly have implications for the EU's relations with Indonesia and Malaysia, particularly concerning the palm oil dispute," he added.

Caspaty said Europe must urgently find a resolution, as well as with other conflicts such as discussions surrounding nickel.

Reactions to WTO verdict

Malaysia's government responded to the WTO verdict as though it had emerged victorious.

Abdul Ghani, Malaysia's minister of plantation and commodities, called it a "vindication" of Kuala Lumpur's "pursuit of justice" for its palm oil sector.

Speaking to local media, he argued that the WTO ruling "clearly finds fault with the EU's rules on indirect land use change to ban palm oil biofuels," adding that it "also finds fault with the EU's approach to notifying and consulting with other economies when introducing new trade measures."

Indonesian policymakers, meanwhile, will take "cold comfort from headlines celebrating the ruling about discrimination," said Jakarta-based analyst Kevin O'Rourke from the consultancy Reformasi Information Services.

It remains to be seen whether Indonesia's president-elect, Prabowo Subianto, will alter Jakarta's stance around this issue when he enters office later this year.

Humphrey from the EU-ASEAN Business Council said he now hopes "the ruling draws a line under the dispute," and that the EU, Malaysia and Indonesia can now focus on working out their differences through the ad-hoc joint task force setup last year.

The task force last met in February and is expected to reconvene for more talks in September in Brussels.

EU should set 'realistic' standards for other countries

The EU is nearing the end of free-trade talks with Indonesia and has been in talks with Malaysia about restarting negotiations for a bilateral free-trade pact.

However, Brussels has recently come under attack from more third parties over how it classifies its rules related to deforestation.

For Jakarta-based analyst O'Rourke, greater clarity can benefit Indonesia and Malaysia.

"Unlike some of their competitors, the two nations are able to achieve compliance in many instances and that will constitute a form of competitive advantage over the long term. And, of course, without such rules, climate change will imperil these as well as all other countries," he said.

This is likely to require the EU to alter how it approaches trade with partners.

Frederick Kliem, a research fellow and lecturer at the S. Rajaratnam School of International Studies in Singapore, said Brussels currently applies "a very detailed, highly bureaucratic approach to such matters."

"This is OK internally, where the EU is well understood, appreciated and policies are well communicated. This is, however, not the same for third parties," he added.

"If the EU does not moderate its high standards and make them more realistic for third parties to achieve, I fear it will be very difficult to achieve further free trade agreements."

https://amp.dw.com/en/eu-palm-oil-ban-malaysia-indonesia-seek-trade-justice/a-68606071

Sumber : Nature and Environment Malaysia

Details: Last Updated: 13 March 2024; Hits: 785

KUALA LUMPUR, March 12 — Natural rubber (NR) production slipped by 0.2 per cent to 30,273 tonnes in January 2024 from 30,342 tonnes in December 2023, said the Department of Statistics Malaysia (DoSM).

Year-on-year comparison, however, showed that NR output rose by 2.8 per cent from 29,451 tonnes in January 2023.

In a statement today, chief statistician Datuk Seri Dr Mohd Uzir Mahidin said 88.3 per cent of the production in January was contributed by smallholders and 11.7 per cent by the estates sector.

On inventory, he said total NR stocks grew by 6.5 per cent to 203,772 tonnes from 191,304 tonnes in December 2023.

He said rubber processing factories accounted for 92.0 per cent of the stocks followed by rubber consuming factories accounted for 7.9 per cent and rubber estates accounted for 0.1 per cent.

Mohd Uzir said Malaysia’s NR exports amounted to 43,111 tonnes in January, down 5.4 per cent from December 2023’s 45,591 tonnes.

China remained the main destination for NR exports, accounting for 32 per cent of total exports in January 2024, followed by the United Arab Emirates, which accounted for 13.5 per cent, Germany, which accounted for 13.0 per cent, the United States, which accounted for 7.3 per cent and India, which accounted for 6.3 per cent.

“The export performance was contributed by NR-based products such as gloves, tyres, tubes, rubber threads and condoms,” he said.

Mohd Uzir noted that gloves were the main exports among rubber-based products with a value of RM1.02 billion in January, a growth of 7.3 per cent from RM0.95 billion in December 2023.

According to DoSM, analysis of the average monthly price showed that concentrated latex recorded an increase of 8.9 per cent in January to 585.74 sen per kg, while scrap rubber increased by 7.4 per cent to 583.29 sen per kg.

“Prices for all Standard Malaysian Rubber (SMR) grades increased between 5.9 per cent and 8.8 per cent,” it said.

According to the Malaysian Rubber Board Digest in January 2024, the Kuala Lumpur rubber market showed a mixed trend throughout the month.

“Generally, the market sentiment was supported by favourable market fundamentals, especially tighter rubber supply due to wet weather in major rubber-producing countries,” it said.

— Bernama

https://selangorjournal.my/2024/03/malaysias-natural-rubber-output-eases-by-0-2-pct-in-january-2024-dosm/#google_vignette

Sumber : Selangor Journal

Details: Last Updated: 13 March 2024; Hits: 171

KUALA LUMPUR, March 12 (Reuters) - Malaysian palm oil futures were largely unchanged on Tuesday as strength in Dalian edible oils wasoffset by a firmer ringgit and weak Chinese demand.

The benchmark palm oil contract FCPOc3 for May delivery on the Bursa Malaysia Derivatives Exchange closed up 2 ringgit, or 0.05%, to 4,133 ringgit ($884.06).

The contract was seen trading higher on supportive February output data in Malaysia as well as bullish momentum from Dalian vegetable oils futures, said Anilkumar Bagani, research head of Mumbai-based vegetable oils broker Sunvin Group.

"However, the stronger Malaysian ringgit and the absence of buying from key buyer China has capped the pace of the upside momentum in palm oil," Bagani said.

Dalian's most-active soyoil contract DBYcv1 rose 0.92%, while its palm oil contract DCPcv1 gained 1.08%. Soyoil prices on the Chicago Board of Trade BOcv1 were down 0.58%.

Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

Malaysia's palm oil stocks at the end of February dwindled to their lowest levels in seven months as production hit a 10-month low, offsetting the slowdown in exports.

Inventories at the end of February fell 5% from January to 1.92 million metric tons, crude palm oil production declined 10.18% to 1.26 million tons, while exports plunged 24.75%, data from industry regulator the Malaysian Palm Oil Board showed.

The Malaysian ringgit MYR=, palm's currency of trade, rose 0.13% against the dollar, making the commodity more expensive for buyers holding the foreign currency.

Exports of Malaysian palm oil products for March 1-10 rose 6.8% from the same period a month ago, cargo surveyor Intertek Testing Services said.

Another cargo surveyor, AmSpec Agri Malaysia, said exports during the same period rose 6.2% from a month ago.

($1 = 4.6750 ringgit)

https://www.nasdaq.com/articles/vegoils-palm-closes-almost-flat-as-firmer-ringgit-offsets-stronger-dalian-rival-oils

Sumber : Nasdaq

Details: Last Updated: 12 March 2024; Hits: 298

KOTA KINABALU: Sabah Chief Minister Datuk Seri Hajiji Noor's visit to Shenzhen in China last year drew a crowd of 1,024 visitors to the state.

Dubbed as the 44th International Tea Gathering, the event, organised by Hangjia Tea-dao Research Society, saw representatives from China, Taiwan, the United States, and more.

The person in charge of the event, Datuk Lee Jack Son, said that the entourage came to Sabah for the cultural exchange and to explore the state.

"This initiative stemmed from the Chief Minister's visit to Shenzhen in November last year. His visit triggered the community to visit Sabah," he told the media at a hotel last night.

Their itinerary, which began on Saturday and will continue until next Thursday, includes exploring tea and the mountains in Ranau, Mantanani Island in Kota Belud, and Tunku Abdul Rahman Park in Kota Kinabalu.

Lee also suggested that the trip might open up commercialisation opportunities, especially if the group could blend tea from Sabah with those from China.

Deputy Plantation and Commodities Minister Datuk Chan Foong Hin and Hangjia Tea-Dao Research Society President Ho Tsai Ping, were present at the event.

Chan, who also serves as Kota Kinabalu member of parliament, highlighted that the entourage of tea enthusiasts is making a significant contribution to Sabah's tourism industry.

"This is the third time the group has visited Malaysia. Previously, they had programmes in Kuala Lumpur and Penang.

"Initially, they planned to visit Bali, but they chose Sabah instead. If each visitor spends RM3,000 during their trip here, this program definitely demonstrates great potential for tourism."

Regarding the international tea festival held last night, Chan expressed that it was eye-opening, as he had never witnessed an event where thousands of people drink tea together.

He also added that in Malaysia, the tea-drinking culture, such as teh tarik, kopitiam, and the afternoon tea lifestyle, is influenced by people of various racial backgrounds.

https://www.nst.com.my/news/nation/2024/03/1024009/sabah-chief-ministers-visit-china-sparks-tea-enthusiasts-trip-state

Sumber : New Straits Times

Details: Last Updated: 12 March 2024; Hits: 229

KUALA LUMPUR: The Plantation and Commodities Ministry (KPK) aims to expand the country’s total cocoa farming area to 10,000 hectares in five years from 5,985 hectares currently, said Deputy Minister Datuk Chan Foong Hin.

He said the focus will be on cultivating premium cocoa bean varieties, which are capable of penetrating a niche market, by growing the crop on parcels of land that have been identified.

“With the guaranteed prospects of the domestic cocoa market, it is hoped that the commodity is given the necessary allocation to increase its land area to 10,000 hectares as targeted, starting with RM3 million for 2025,” he said during the question-and-answer session in Parliament today.

He was replying to a question from Riduan Rubin (Independent-Tenom) who wanted to know about KPK’s efforts to empower the cocoa industry.

Chan also disclosed that KPK is in the midst of branding and promoting premium local cocoa products as single-origin cocoa with a unique flavour, to enable cocoa producers to promote the distinctive taste and attract local and international chocolate makers.

KPK and the Malaysian Cocoa Board are also promoting the introduction of new technologies and adoption of existing technologies as good agricultural practices to boost productivity and facilitate plantation management operations through the application of the latest technologies, including mechanisation and Internet of things.

“This initiative can enhance the youth’s interest to participate in the upstream sector, as well as strengthening marketing support for operators and smallholders to ensure sustainable cocoa cultivation,” he added.

https://thesun.my/local_news/kpk-targets-to-boost-cocoa-farming-area-to-10000-hectares-in-five-years-EB12201720

Sumber : The Sun