Let the good things flow

By ERROL OH

Errol Oh feels that plantation industry should focus on raising ‘green’ palm oil production, not sales.

DOES business always have to be a tug of war between lucre and the greater good? We know the answer to that. It’s ridiculous to suggest that profits and altruism are mutually exclusive. We have seen time and time again that companies can be caring and competitive at the same time.

And there’s stark logic in the argument for sustainable business practices – if businesses continue gobbling up natural resources and harming the environment, there will eventually be nothing to sell or worse still, nobody to sell to.

This is the reality today. No industry can afford to ignore its social, economic and environmental impact. The palm oil industry recognises this. That’s why the Roundtable on Sustainable Palm Oil (RSPO) was set up in 2004. Says the organisation’s website, “RSPO is a not-for-profit association that unites stakeholders from seven sectors of the palm oil industry – oil palm producers, palm oil processors or traders, consumer goods manufacturers, retailers, banks and investors, environmental or nature conservation NGOs (non-governmental organisations) and social or developmental NGOs – to develop and implement global standards for sustainable palm oil.”

Such an initiative cannot take off the ground without the support of the plantation companies. Fortunately, the Malaysian Palm Oil Association is a RSPO member and so are large local players such as Felda, Sime Darby Bhd, Kuala Lumpur Kepong Bhd, IOI Corp Bhd and United Plantations Bhd.

Malaysian companies are among the first to be certified by independent bodies for conformance with RSPO’s principles and criteria, either on a company-wide basis or for parts of their operations.

These include United Plantations (the first, in August last year), Kulim (M) Bhd, Sime Darby, PPB Oil Palms Sdn Bhd and IOI Corp,

It has been a decent start for what is obviously a long journey towards the broad production and use of sustainable palm oil.

Yet, there has been some noise lately about the lukewarm market response to palm oil certified under RSPO’s audit programme, the so-called ‘green’ palm oil. The chief complaint is that the buyers in the West, who have clamoured for sustainable palm oil, are not willing to pay more for green palm oil.

When United Plantations shipped its first batch of green palm oil to Europe last November, the commodity was said to have been sold at a premium of US$50 per tonne. The premium has since narrowed to US$20. According to a WWF report in May, only 1% of the sustainable palm oil available on the market had been bought.

On Tuesday, Malaysian Palm Oil Council chief executive officer Tan Sri Yusof Basiron came out swinging in an interview on the subject.

“We have been led down the path of false hope in selling environmentally certified palm oil, and now the buyers are not keen on paying for the premium,” he told Reuters.

“It’s clear that all these demands from the NGOs to be environmentally sustainable, which we obviously have been for many years and decades, are just trade barriers in disguise.”

He had more fighting words to offer: “The market signal is very clear. We can supply at a premium but if buyers are clearly not interested, the palm oil suppliers will have to change tack. This is still a business, after all.”

He is right; palm oil cultivation is a business. But it’s also a business that’s accustomed to 25-year planting cycles. In other words, the industry should know a thing or two about adopting a long-term view.

It has been less than a year since green palm oil began flowing into the market. Isn’t it too soon to even think about giving up on the RSPO? Yes, the consumer goods manufacturers may be dragging their feet in backing up their commitment to sustainable palm oil, but at this point, what they do or don’t do is secondary.

This is a time for the plantation players to step up to the plate and keep their end of the bargain. The ability to sell palm oil at a premium is a nice carrot, but we should be focusing on the stick. The palm oil industry stands to lose the most if it prematurely abandons the RSPO certification systems.

Palm oil has been the whipping boy of NGOs because of allegations that the industry’s expansion contributes to global warming, the death of orangutans, dislocation of indigenous people and other ills. The protests and bad publicity threaten to turn into a political and consumer storm that will depress demand for the commodity.

The plantation industry has all along claimed that most of its players already employ sustainable practices, but that won’t fly when there’s a groundswell of scepticism. An independent certification mechanism is necessary and that’s precisely why the RSPO was formed.

Boosting green palm oil sales shouldn’t be an industry priority right now; it should be looking at increasing green palm oil production. The aim ought to be to have nothing but green palm oil in the market. Is that a sure-fire business strategy? Maybe not, but it’s unquestionably the right thing to do.

As cynical as he often is – it’s a job hazard – deputy business editor Errol Oh still believes that good things happen to those who do good things.

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Indonesia – Call for eco-friendly palm oil plantations

The Indonesian’s Agriculture Minister has called for continued development of eco-friendly and sustainable oil palm plantations in view of the good prospects for the palm oil market and the significant role they play in promoting economic development, Asia Pulse reports.

He said the Indonesian government itself in its effort to maintain sustainability of its palm oil industry had issued several decisions such as erasing export tax, making bio-fuel mandatory, bearing cooking oil sales tax and campaigning for the development of sustainable oil palm plantations.

A senior consultant at Nexant Asia, said that non-food feedstocks for biofuel production would improve both food and energy security, TheBioenergySite News reports. She told the Indonesia Biofuel Conference 2009 in Jakarta that the most suitable sources of bio-fuels were jatropha or physic nut, a hardy plant that is drought and pest resistant; sweet sorghum; and marine algae.

"So far, jatropha is widely cultivated in India, China and some countries in Africa and Southeast Asia, while sweet sorghum is grown in Australia, Asia and Latin America," she said. (23 January 2009)

Palm Oil Mill Effluent (POME) treatement system

Palm Oil Mill Effluent (POME) is the direct by product of oil palm processing system in palm oil mill. There are mainly consists of organic materials in solid and semi solid state.

In the early years of milling industry the palm oil mill effluent been disposed directly into normal drainage system. This method of disposal resulted in environmental damage and serious water pollution as the milling capacity increased.

Today, at least three methods been applied by oil palm mills to ensure minimum impact to the environment. These most commonly used methods are ponding system, open tank digester and extended aeration system.

Good Fat Bad Fat

Some of the most powerful positive habits for a trim and fit body in your arsenal are the positive habits related to replacing bad fats in your diet with good fats. Most people only think of fat as being a bad thing. In fact, for many years the media has been promoting "fat-free" diets as a more healthy diet.

Just take a look around your local grocery store; you will see lots of products labeled fat free. Do you think all those fat-free products have resulted in thinner Americans? Think again. The
percentage of obese people in this country has been rising every year. Americans are now the fattest people on the planet.

The media has gotten it all wrong. Fat can be your friend! There are certain types of fats that are bad for you. They can increase you risk for heart disease while making you fatter at the same time. Other fats are good for your health and can actually help you burn fat and lose weight! Here are just some of the benefits that the positive fat replacement habits will provide to you:

* Increase the rate that your body burns fat
* Help you lose weight automatically and keep it off
* Increase your good cholesterol HDL levels and decrease your bad cholesterol LDL levels
* Help you to curb your appetite and eat less
* Decrease your risk for heart attack
* Help balance your insulin levels
* Help you convert unwanted body fat into energy
* Help raise your body's metabolic rate (the rate your body burns calories)

The Bad Fats

The fats that are bad for you are saturated fats and trans fats; these are fats that are found in animal products such as butter, cheese, meats, and also in many of the processed foods that we eat. Numerous studies have shown that a diet high in saturated fats may increase blood levels of LDL (bad) cholesterol and total cholesterol, risk factors for heart disease.

Trans fats are the most dangerous dietary fats on the planet. Trans fats are typically produced by applying an artificial process to vegetable oils. These fats are mostly found in fried foods,
margarines, and processed foods like potato chips and crackers. Researchers at Harvard University did a study of 85,095 women who had no previous history of heart disease or stroke. During the years that followed, the fifth of the group that had the highest intake of trans fatty acids had a 50% greater risk for heart disease then the fifth that had the lowest intake of trans fatty acids.

A recent study showed that women who ate more then four teaspoons per day of margarine had a 70% higher risk of cardiovascular disease then those women who seldom ate margarine. Despite lobbying by many consumer groups, trans fat is still not listed on nutritional labels. Do yourself a favor and dump your margarine RIGHT NOW! Replace it with olive oil or the new healthy butter substitutes that do not contain trans fats.

Some researchers have said that as many as 30,000 deaths per year can be attributed to the consumption of trans fat. Reducing or eliminating trans fats from your diet will help to improve your health and the positive habits that follow will help you do just that.

The Good Fats

An example of good fats would be monounsaturated fat, and omega-3 fatty acids. You would find these fats in fish, nuts, olive oil and those kinds of foods, the kind of foods that are very prominent in what is called the Mediterranean diet.

Omega-3 fatty acids -- Flaxseed is a great source of omega-3 fat. More than half the fat contained in flaxseed is omega-3 fatty acid type, an essential fatty acid. There have been numerous studies reporting the health benefits of consuming omega-3 fats. Recent studies suggest that Omega-3 fatty acids which are abundant in flax seed can help protect you from coronary artery disease, stroke, high blood pressure, autoimmune and inflammatory disorders.
Studies on the effects of flax seed on breast cancer are now under way.

Omega-3s can also help boost your metabolism, helping your body to burn calories faster.You can buy raw flax seed and add it to your cereal or flax seed oil which can be mixed in salads or protein shakes. Any good health food store will carry both.

Simple Diet Changes That Pack a Fat-Fighting Punch

Texas A&M University researchers conducted a study to determine what dietary changes resulted in the biggest reduction in fat. During two different 24-hour periods, they asked 5,649 adults to list dietary changes they made in an effort to reduce fat consumption.

The researchers then calculated the changes that resulted in the biggest reduction of fat. Combine these simple eating habits with other weight loss habits, and you will see that trim body in the mirror sooner then you think. Here are the results of the study:

* Do not add fat to baked or boiled potatoes.
* Do not eat fried chicken.
* Do not eat more than two eggs a week.
* Do not eat red meat.