Showing posts with label RSPO. Show all posts
Showing posts with label RSPO. Show all posts

Wednesday, December 15, 2010

Shaping the future of the palm oil industry

06/12/2010 (The Jakarta Post) - The pros and cons regarding the role of the Roundtable on Sustainable Palm Oil (RSPO) have been discussed in an on and off manner since the group’s inception. Similar debate arose ahead of its recent eighth meeting in Jakarta from Nov. 8 to 11 and the sixth Indonesian Palm Oil Conference, held in Bali, which concluded on Dec 3.

Considering the diverse backgrounds and interests of RSPO members, it is little wonder that they found have it very difficult to find a middle ground that benefited all. But perhaps it is now time to remind everyone again that the world has been changing from the “muscle era” to the “mind era”, which requires the use of soft power, such as creative thought, as suggested by John Elkington.

Palm oil plantations have been tainted by a series of negative campaigns. There are blind spots as a result of the negative campaigns against Indonesian palm oil industry players, who then are unwilling to sit together to shape their common future under the RSPO.

I believe that the blind spots originated from a mixture of facts, myths and conflicting viewpoints surrounding palm oil cultivation.

First, there is a conviction among environmentalists that palm cultivation emits carbon and carbon emission is a new driver of environmental consciousness. However, some researches suggest that palm oil cultivation, particularly in the process of growing, is actually absorbing more carbon from older trees.

Thus, from some perspectives palm oil cultivation is deemed as a carbon sequester.

Another issue associated with palm oil cultivation that is vaguely recognized and sometimes lost in the fray is the socio-economic aspect.

It is a fact that palm oil contributes to food security as the most productive and highest yield of edible oil, and is a development driver for poverty alleviation through small-holder development.

Second, many misunderstandings have been attributed to legal uncertainty in Indonesia. Many accusations toward palm estates are sourced from different interpretations of conflicting laws and regulations concerning forestry, environment, agriculture, regional autonomy and land concessions.

Some parties, for example foreign NGOs, accuse growers of violating the environmental law, while the goodwill of the growers to comply with certain laws is not viewed impartially.

So how to straighten out the mess? I believe that firstly, the government should provide tacit support for sustainable palm oil development by eliminating all overlapping regulations and potential loopholes from different areas.

The overarching objectives should capture the spirit of sustainable development with a three-pronged approach, namely economic prosperity, environmental quality, and social justice.

Second, the spirit of partnership in building new understanding should be reached among the many actors in the palm oil industry. This could be achieved through a global campaign, public education and a global forum on palm oil.

Third, certification and standardization of palm oil is inevitable and indispensable to meeting the agreed standards. However, the criteria should be built on consensus among all stakeholders in a transparent, fair, accountable and equitable manner.

Fourth, RSPO is one of the means to up the ante of palm oil quality and performance, which should be used effectively by all stakeholders, including the government and growers, to further advance sustainability in the palm oil industry.

However, on the other hand, the government and growers are mulling an alternative certification regime under the Indonesia on Sustainable Palm Oil (ISPO), which has been seen by some parties as contradicting the whole purpose of RSPO.

It is also noted that certifications do not prevent black campaigns. Thus, tangible incentives for certifications should be in place. Otherwise, disincentives may also be applied to non-sustainable products in terms of discount prices or trade barriers.

Promotion of sustainable palm oil should involve all value chains within the industry. Therefore, it is necessary to further differentiate the sustainability of palm oil by adopting several types of certifications in different schemes.

Some suggest that RSPO is an ideal venue to shape the sustainability of palm oil, however the forum faces growing challenges from both members and non-members for different reasons. The Indonesia Sustainable Palm Oil (ISPO) is seen as an alternative certification standard introduced by the government along with concerned stakeholders.

Such alternative certification schemes are intended for palm oil growers, but can also be applied for other value chains on the basis of palm oil uses, processes or products. Despite its noble intention, the alternative certification is facing daunting challenges in terms of institutional credibility and product acceptability.

The process will draw certification and standardization of palm oil, which is inevitable and indispensable for the palm oil industry to meet the agreed standards.

By building the criteria on consensus among all stakeholders in a transparent, fair, accountable and equitable manner, we can expect the industry to reach positive new development in the near future.

At the very least, the current plan aims to: First, differentiate the sustainability of palm oil by adopting several types of certifications; second, promote alternative certification schemes, including specific certification on the basis of its uses, process or products; and third, develop the best certification mechanisms, including a clearing house mechanism to resolve conflicts and disputes.

These processes, if conducted consistently, will help us achieve what Elkington calls sustainability as a result of long-term maintenance of systems according to environmental, economic and social considerations.

Further, in shaping the future of sustainable palm oil, the RSPO should be used as a platform for development of sustainability certification, either by government-driven, market-driven or other multi-stakeholder-driven standard setting on sustainable palm oil.

Taking into account the sensitivity and complexity of sustainable standards and certifications, RSPO is considered ideal for playing a role as a clearing house to reconcile conflicting interests and views on sustainable palm oil. However, its roles should go beyond its members to also accommodate other parties, such as the government and consumer groups.

Future Palm Oil Industry
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Thursday, December 9, 2010

Malaysia, Indonesia in united stand to promote palm oil

18/11/2010 (The Star Online), Brussels - In a united stand, the world's top palm oil producers Malaysia and Indonesia have expressed strong intention to undertake more joint activity to promote the commodity's sustainable production image and address the mounting negative publicity among the green NGOs and major importing Western countries.

One such move was the recently-concluded two-day Joint Malaysia-Indonesia Ministerial Mission to the European Union (EU) which started on Monday with the aim of addressing concerns on the EU Renewable Energy Directive (RED) set to be implemented by Dec 5.

Malaysia's Plantation Industries and Commodities Minister Tan Sri Bernard Dompok and Indonesia's Agriculture Vice-Minister Dr Bayu Krisnamurthi said in a joint press conference on Tuesday that there were positive outcomes from the meetings with the European Commissioners on issues related to palm oil.

The issues discussed at the closed door meetings include Directive 2009/28/EC on the promotion of the use of energy from renewable sources and its WTO-compliance, sustainable production of palm oil, indirect land use change (ILUC), biofuel certification, revision of the default values under Annex V of the RED and high-biodiversity grassland.

Dompok said: The European Commissioners had indicated that they were open and willing to review the EU RED criteria on palm oil if Malaysia and Indonesia were able to provide more inputs in the form of data and proven research findings to support the merits of the commodity.

The EU RED has set criteria on the use of palm oil as feedstock for biofuel production which could form a non-tariff barrier for the import of the commodity into the EU.

As top palm oil producers, Malaysia and Indonesia had attracted the most scrutiny whereby politicians from all sides had been influenced by NGOs and are currently promoting discriminatory trade measures against palm oil as part of the implementation of the EU RED.

For decades, Malaysia has been meeting the European demand for quality vegetable oil for use in food and oleochemical products, Dompok said.

However, within the past one to two years, Europe's new focus on fighting climate change and promoting alternative fuels has fundamentally shifted the political and commercial context for imports of palm oil and other vegetable oils with high potential for biofuel applications.

According to Malaysian Palm Oil Board statistics, Belgium had last year imported 1.24 million tonnes of palm oil, followed by the Netherlands at 989,834 tonnes and Britain at 42,293 tonnes respectively.

On the sustainable production of palm oil, apart from participating in the voluntary Roundtable on Sustainable Palm Oil (RSPO) certification, both countries are undertaking new efforts in ensuring sustainable production.

Bayu said: Indonesia is developing its own standard the Indonesia Roundtable on Sustainable Palm Oil (ISPO) and this will be made compulsory to all its plantation companies by early next year.

Dompok said Malaysia was implementing the codes of practice for the local palm oil sector.

Malaysia and Indonesia are striving for support from 10 to 15 other palm oil-producing countries in an effort to get a stronger voice in championing the palm oil cause.

Given the fact that there were no single certification on biofuels currently recognised by the European Commission, the ministers had proposed the implementation of a single EU certification scheme and the requirements of such schemes should be in line with the EU RED.

Next on the agenda for Dompok under his tight palm oil and timber programme will be London.

There will be a dialogue session with the NGOs which many consider as the major highlight of his working trip to London to be followed by a roundtable discussion with Britain's timber representatives and retailers' dialogue.


Palm Oil Production
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Friday, November 19, 2010

By rejecting palm, it means more lands will be deforested to plant soy or rapeseed or corn etc

Look out for the Malaysian Palm Oil Brand
Article by Dr Yusof Basiron

As we approach the year end, thousands of oil palm farmers and smallholders are relieved at the prospect of palm oil prices being maintained at more than RM 2400 per tonne for December 2009. Although the lucrative prices for 2008, which were partly influenced by high prices of petroleum, could not be repeated, the present year end daily prices of above RM 2400 per tonne signal many positive trends that await the industry in 2010.

Buyers too were happy that palm oil continues to provide them with an abundant supply of affordable raw material for various end-uses. Palm oil is still sold at a discount to soya, rapeseed and sunflowerseed oils. Malaysian palm oil suppliers are able to comply with the needs of the buyers, by adhering to the wisdom that customers are always right. In Europe, even power plant operators are able to use certified sustainable Malaysian palm oil viably to produce electricity and heat. Such power plant operators have limited choice as using locally available rapeseed oil will cause their engines to malfunction because of polymerization problems of the rapeseed oil in the engines during operations.

The EU is beginning to recognize the role of the RSPO in supplying certified sustainable palm oil for its biodiesel requirements. The EU politicians are worried of their green NGOs who would otherwise campaign on banning the use of palm oil for fuel and food. Such campaigns have recently spread to New Zealand and Australia through their Zoo authorities and ”experts’ who claim to be concerned over the orang utans and allegations of deforestation. Sustainably produced palm oil seems to be the solution to resolve the NGOs’ concerns as banning the imports of palm oil is not a real option because it would be against WTO provisions.

Buying certified sustainable palm oil seems a viable option for the EU politicians to recommend in order to avoid being harassed by the green NGOs. For this reason, the RSPO scheme should continue to be improved to meet the needs of the EU importers.

The rest of the world continues to focus on getting enough oils and fats to meet their annual needs. Most countries are net importers of oils and fats. Only Malaysia, Indonesia and Argentina are major or significant net exporters of this commodity, and for countries which are not self-sufficient they have to buy from the three net exporter countries. The EU net imports of oils and fats amount to over 8 million tonnes per year ( equivalent to half the total export of palm oil by Malaysia ), but it is also one of the most ‘demanding’ net importers, insisting that palm oil must be certified sustainable when used for biodiesel. The EU biodiesel standards have some 26 parameters which palm biodiesel exporters must comply with. These pose a daunting challenge for biodiesel producers to do business with EU importers.

Moving forward into 2010, a few issues remain unresolved. I am puzzled at the misinformation still in the minds of many important people in the EU when we recently met them during our visit to Europe.

During a private consultation in London, HRH. Prince Charles in talking to the MPOC Chairman, complained that oil palm is a mono-culture industry and lacks biodiversity. Obviously many people forget that oil palm is an agricultural crop planted on legitimate agricultural land just like soyabean or olive plantations which are also mono-cultures, and it should not be compared to biodiversity in the forests. Why must the green NGOs in the UK and their followers be opposed to the growth of agricultural crops of developing countries such as Malaysia when these crops have been grown responsibly for generations and subjected to various national regulations and laws. For Malaysia, our land use policy is based on the pledge made at the Rio Earth Summit more than 15 years ago to conserve at least 50% of the country under permanent forests (to provide for biodiversity and habitat requirements), while 25% is zoned for agriculture and another 25 % for other industrial uses. With oil palm occupying 13% of the total land area, it means that for every hectare of oil palm, the country conserves 4 hectares of permanent forests. Because land for agriculture is already limited, and the permanent forests are off-limits to agricultural conversions, oil palm plantings have been much reduced. Certainly oil palm cannot be associated with deforestation in Malaysia as it should not happen except in the distant past when the current agricultural land (making up 25% of the country) was first cleared. This was needed for the country to develop, just like other countries. In comparison the UK developed 72 % of its land for agriculture and only has 11 % retained under forest.

During another dialogue in Kuala Lumpur hosted by the Minister of Trade of the UK, he suggested that the RSPO is the right platform for the oil palm industry to engage the environmental NGOs to ensure sustainable certified palm oil can be exported to the EU. He was surprised when I told him that many of the aggressive UK NGOs refused to be members of the RSPO. In fact the palm oil producers were disappointed by RSPO promoters who promised to have the NGOs as members and stakeholders to negotiate a susccessful RSPO certification scheme. Right now the NGOs outside the RSPO are more influential and they campaign against the RSPO to make those NGOs who are members of the RSPO to appear ineffective.

During a meeting with the Economic Minister of the Netherlands we were told to supply sustainable palm oil as this is what the EU wants. We did inform her in reality that there are more than 1 million tonnes of sustainable certified RSPO palm oil potentially available from Malaysia right now, but only 10 % was imported by the EU. It is interesting to note that the EU talked of putting up US$ 2 billion to compensate developing countries to maintain their forests. In reality, RSPO is a scheme that promotes the conservation of forests, but the EU is shying from paying even the US$ 50 per tonne premium for RSPO certified palm oil. At least EU importers should pay the producers to cover the cost of certifying the oil which involves employing auditors some of whom have to fly in from the EU to conduct the auditing process. In other words, the buyers must help pay for the cost of employing the EU auditors and not ask poor farmers and oil palm workers of developing countries to fork out for the extra cost of producing certified sustainable palm oil to meet the European needs.

Many other issues relating to the habitat needs of the orang utans and global warming will continue to be associated with the oil palm industry by some misinformed people and other uninformed followers of the debate. As far as Malaysia is concerned, specialized conferences on orang utans and Green House Gases (GHG) emission and mitigation have been organized during 2009. Experts attending these conferences have no major issues to raise with the Malaysian palm oil industry during the deliberations. In fact no one raised major issues that are not already addressed by the industry. Many of the environmental allegations are not relevant to Malaysia. There were almost no real issues to debate on. On the other hand, some level of satisfaction was expressed by international experts on orang utans and GHG issues in relation to efforts undertaken by Malaysia.

It is time to brand Malaysian palm oil for better public and consumer perception. Some of the brand claims could be that Malaysia is ready to supply sustainable certified RSPO palm oil to the EU market, especially for its biodiesel requirement. The RSPO’s intention to incorporate on a voluntary basis carbon emission saving parameter in its certification criteria would be much anticipated as an important improvement to the RSPO scheme.

In preparing for the climate change meeting in Copenhagen, it was found that oil palm together with other plantation tree crops such as rubber, cocoa and coconut enable Malaysia, in addition to its 56% permanent forest cover, to classify itself as a net carbon sink country despite having industrialized for the last 52 years since achieving independent. Obviously it is the tree crops such as oil palm that have partly contributed to make Malaysia a net carbon sink country, effectively contributing to remove carbon dioxide from the globe when other countries are still haggling especially at the Copenhagen Climate Change meeting on who should be making the first move to reduce emissions given that most of these countries are net co2 emitters.

Getting the facts right has been the theme of this blog. Some readers may continue to question the facts as presented, and some even resort to claiming that these are lies. There must be a way forward where doubters can be assured of an authentic and fair source of information. One other way is for them to visit Malaysia and meet the producers and see the oil palm plantations. We have many plantation resorts where tourists can enjoy their visits to Malaysia. Another approach is to continue commenting and submitting your queries to this blog to exchange views. Malaysian palm oil is already a brand name that is sought after by discerning buyers and consumers. Improvements will continue to be introduced in 2010 and thereafter. Let us know how we can help.


 World Food Crisis
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Thursday, May 14, 2009

Slow Sales Of Sustainable Palm Oil Threaten Tropical Forests; WWF To Grade Palm Oil Buyers - East News Park Forest

12/05/2009 (East News Park Forest) - New figures released by World Wildlife Fund (WWF) today show that only 1 percent of the sustainable palm oil available on the market has been bought, raising concerns that one of the major solutions to halting deforestation of tropical forests is not catching on fast enough. Rapid increases in the production of palm oil, which is found in everything from cosmetics to ice cream to chocolate bars, has caused extensive land clearing in places like Borneo and Sumatra, resulting in loss of habitat for endangered species like tigers and orangutans and contributing to climate change.

Palm oil use has doubled over the last four years in the U.S., mostly in response to rising concerns about trans fats. WWF helped set up the Roundtable on Sustainable Palm Oil (RSPO) as an international body for the industry to develop sustainability standards. Certified sustainable palm oil, available since November 2008, provides assurance that valuable tropical forests have not been cleared and that environmental and social safeguards have been met during production. Yet further production will hinge on manufacturers and retailers committing to buy what’s available.

In a bid to speed up the “sluggish performance,” WWF will assess the world’s major users of palm oil over the next six months and publish a Palm Oil Buyer’s Scorecard highlighting whether or not companies have supported sustainable palm oil and fulfilled their commitments to purchase it.

“So far, around 1.3 million tons of certified sustainable palm oil have been produced, but less than 15,000 tons have been sold,” said David McLaughlin, vice president of agriculture for WWF. “This sluggish demand from palm oil buyers, such as supermarkets, food and cosmetic manufacturers, could undermine the success of sustainability efforts and threatens the remaining natural tropical forests of Southeast Asia, as well as other forests where oil palm is set to expand, such as the Amazon.”

“The tropical forests of Borneo and Sumatra are being cleared at such a rapid pace that the carbon emissions from this deforestation are greater than the industrial emissions of some developed countries,” said Ginny Ng, WWF senior program officer for Borneo and Sumatra. “The orangutans, elephants, tigers and rhinos on these islands don’t stand a chance of survival if their forests aren’t protected. Creating a demand for sustainably grown palm oil is essential to their survival.”

WWF asks all companies buying palm oil to make public commitments that they will use 100 percent certified sustainable palm oil by 2015; to make public their plans with deadlines to achieve this goal; and to begin purchasing certified sustainable palm oil immediately.

The Palm Oil Buyer’s Scorecard will rank the commitments and actions of major global retailers, manufacturers and traders that buy palm oil. Companies will be scored on a variety of criteria relating to their commitments to, and actions on, sustainable palm oil. The scores are meant to help consumers evaluate the performance of these companies and encourage the companies themselves to better support the use of certified sustainable palm oil.

  1. As a founding member of the RSPO, WWF has worked since 2002 with the palm oil industry to ensure that the RSPO standards contain robust social and environmental criteria, including a prohibition on the conversion of valuable forests. The RSPO brings together oil palm growers, oil processors, food companies, retailers, NGOs and investors to help ensure that no rainforest areas are sacrificed for new palm oil plantations, that all plantations minimize their environmental impacts and that basic rights of local peoples and plantation workers are fully respected.
  2. The RSPO began in 2002 as an informal cooperation on production and usage of sustainable palm oil among Aarhus United UK Ltd, Golden Hope Plantations Berhad, Migros, Malaysian Palm Oil Association, Sainsbury’s and Unilever together with WWF. These organizations held the first Roundtable meeting in August 2003 in Kuala Lumpur in order to prepare the foundation for the organizational and governance structure that resulted in the formation of the RSPO. Since then the RSPO has grown to include more than 300 members between them accounting for more than 35% of global palm oil production.
  3. The oil palm tree originated in West Africa but it has been planted successfully in many tropical regions including the world’s largest exporters of palm oil, Indonesia and Malaysia. Over 43 million tons of palm oil are produced worldwide and comprise a major food source all over the world. Palm oil is used in a wide variety of foods including margarine, cooking oil, chips, cakes, biscuits and pastries. Palm oil derivatives are also found in cosmetics, soaps, shampoos and detergents. Sales in Europe have grown recently due to palm oil being an effective substitute for partially hydrogenated soft oils such as those produced from soy oil, rapeseed and sunflower thereby eliminating trans-fatty acids from many products.
  4. WWF recognizes that palm oil is a basic foodstuff with high consumer demand. Europe imports 2.7 million tons of vegetable oil annually for food and soaps, making it the third biggest market for palm oil in the world, after India and China. In addition, palm oil is increasingly used to replace fossil fuels in the transport and energy sectors of (mainly) developed countries. Taking into account the growing demand for palm oil for bioenergy as well as traditional uses, the FAO estimates that palm oil production will double between 1999/2001 and 2030.
  5. Despite having the highest yield per hectare of any oil or oilseed crop, it is recognized that there are environmental pressures on its expansion to eco-sensitive areas, particularly as oil palm can only be cultivated in tropical areas of Asia, Africa and America. Oil palm plantations have often imposed environmental and social costs due to indiscriminate forest clearing, loss of habitat important to threatened and endangered species such as orangutan, elephants and tigers, uncontrolled burning with related haze, and disregard for the rights and interests of local communities.

Wednesday, May 13, 2009

Indonesia/Malaysia- Joint efforts to raise rubber and CPO prices

Indonesia and Malaysia have been discussing joint efforts to strengthen the prices of commodities, especially palm oil and rubber, through market stock management and by lowering supplies under a plant rejuvenation program, Asia Pulse reports.

At a bilateral meeting between Indonesia's agriculture minister and Malaysia's plantation and commodity minister in Kuala Lumpur on Wednesday, both agreed to replace palm oil plants older than 25 years and to carry out a bio-fuel program to boost demand for CPO-Malaysia is already mixing five per cent of CPO or methyl ester with fossil fuel oil starting this month.

Efforts have been made by the relevant industries to produce CPO following the roundtable on sustainable palm oil (RSPO). Right now, one Indonesian and four Malaysian CPO companies are holders of RSPO certificates.

Separately, Indonesia’s government will be forced to dig deeper into its pockets for fuel subsidy allocations after a House of Representatives' commission agreed to give state oil and gas firm PT Pertamina greater cuts for distributing subsidized fuels, the Jakarta Post reports. With a higher distribution cost, the overall fuel subsidy will stand at more than Rp 32 trillion (around USD2.6 billion) as initially predicted, although the exact figure is still the subject of further discussions, said Energy and Mineral Resources Ministry's director general for oil.

The new system will adopt a fixed payment for Pertamina while previously it was calculated as a percentage of a mean of the daily oil price traded in Singapore.

According to traders, Malaysian palm futures gave up a nearly 2 percent gain to finish marginally lower on Thursday, as selling was sparked by falls in rival soybean prices, Reuters reports.

The market rallied early on expectations that Malaysian palm stocks at the end of this month may drop by around 5 percent from January on falling output and slightly better than expected exports, said a trader at a Kuala Lumpur-based brokerage.

Monday, May 11, 2009

'Green' power plants may burn palm oil - The Independent


11/05/2009 (The Independent) - The operators of Britain's first "biofuel" power plants are considering burning palm oil, which is blamed for causing rainforest destruction in south-east Asia.

At least four new power stations are being planned around the UK to burn vegetable oils with the assurance that they will generate less pollution than burning climate-change-causing fossil fuels. Two that would power more than 50,000 homes, at Portland in Dorset and Newport in South Wales, are considering using palm oil.

W4B Energy, which has submitted a planning application to build the £30m Portland plant, says it would use only sustainable supplies certified by the Roundtable on Sustainable Palm Oil (RSPO). Vogen Energy, behind the plant at Newport, says production of its palm oil would not harm the environment.

But environmentalists say using any palm oil would be unwise because it would put pressure on supplies, even if the supplies which go into the power stations are officially sustainable. Some green groups are also unsure whether the RSPO system for certifying "sustainable" supplies is sufficiently robust.


Most of the 38 million tonnes of palm oil produced globally is used in food and cosmetics. But the need for biofuels to mix with petrol and as "feedstock" for power stations is putting pressure on demand, which is forecast to grow at 6 to 10 per cent a year.

Conservationists are concerned at the loss of primary forest in Sumatra and Borneo and elsewhere, to make way for plantations. New plantations result in large losses of wildlife and are blamed for imperilling the future of the tree-dwelling orangutan, which could become extinct in the wild in 20 years.

The power plants would help the UK meet its target of generating 15 per cent of its energy from renewable sources by 2020, but the Government says it must "proceed cautiously" to prevent biofuels raising food prices and destroying wildlife in developing countries. New sources of power are also required because new nuclear power stations will not be in operation until after 2020 and many existing fossil fuel power stations are coming to the end of their life.

But Robert Palgrave, a member of the pressure group Biofuelswatch, argued that growing crops for electricity was a less efficient use of resources than using that land for wind turbines: "To produce the amount of palm oil for food, cosmetics and biofuel is an incredible demand and the only way they can get it is through deforestation."

James Turner, a Greenpeace forests campaigner, said: "Using palm oil to fuel a power station could be even more damaging than burning fossil fuels."

Thursday, May 7, 2009

The guilty secrets of palm oil: Are you unwittingly contributing to the devastation of the rain forests?

Does your shopping basket contain KitKat, Hovis, Persil or Flora? If so, you may be contributing to the devastation of the wildlife-rich forests of Indonesia and Malaysia, where orangutans and other species face extinction as their habitat disappears.

Report by Martin Hickman


It's an invisible ingredient, really, palm oil. You won't find it listed on your margarine, your bread, your biscuits or your KitKat. It's there though, under "vegetable oil". And its impact, 7,000 miles away, is very visible indeed.


The wildlife-rich forests of Indonesia and Malaysia are being chain-sawed to make way for palm-oil plantations. Thirty square miles are felled daily in a burst of habitat destruction that is taking place on a scale and speed almost unimaginable in the West.


When the rainforests disappear almost all of the wildlife – including the orangutans, tigers, sun bears, bearded pigs and other endangered species – and indigenous people go. In their place come palm-oil plantations stretching for mile after mile, producing cheap oil – the cheapest cooking oil in the world – for everyday food.


It's not that people haven't noticed what is going on. The United Nations has documented this rampage. Environmental groups have warned that what we buy affects what is happening in these jungles. Three years ago, Britain's biggest supermarket, Tesco, was persuaded to join the only organisation that just might halt the chopping, the Roundtable on Sustainable Palm Oil.


In his globe-trotting Tribe series two years ago, the TV explorer Bruce Parry was visibly moved by the sad fate of the Penan, a forest-dwelling tribe in Borneo. Most recently, the BBC's prime-time Orangutan Diary showed the battle to create fresh habitats for "red apes" orphaned by deforestation, principally for palm oil.


But if there's plenty of evidence of the devastating environmental effects of palm-oil, little of it can be seen on the products in Britain's biggest supermarkets.


Until now, the best estimate of the number of leading supermarket products containing palm oil (Elaeis guineensis) has been one in 10, the figure quoted by Friends of the Earth in its 2005 report, "The Oil for Apes Scandal". After a two-month investigation, The Independent has established that palm oil is used in far greater quantities. We can reveal for the first time that it is confirmed or suspected in 43 of Britain's 100 bestselling grocery brands (see box, right), representing £6bn of the UK's £16bn annual shopping basket for top brands. If you strip out drinks, pet food and household goods, the picture is starker still: 32 out of 62 of Britain's top foods contain this tree-felling, wildlife-wrecking ingredient.


It's in the top three loaves – Warburtons, Hovis, and Kingsmill – and the bestselling margarines Flora and Clover. It's in Special K, Crunchy Nut Cornflakes, Mr Kipling Cakes, McVitie's Digestives and Goodfella's pizza. It's in KitKat, Galaxy, Dairy Milk and Wrigley's chewing gum. It's in Persil washing powder, Comfort fabric softener and Dove soap. It's also in plenty of famous brands that aren't in the top 100, such as Milkybar, Jordan's Country Crisp and Utterly Butterly. And it's almost certainly in thousands of supermarket own brands. Yet none of these manufacturers can prove their supply is "sustainable".


What, then, is "unsustainable" palm oil? Step one: log a forest and remove the most valuable species for furniture. Step two: chainsaw or burn the remaining wood releasing huge quantities of greenhouse gas. Step three: plant a palm-oil plantation. Step four: make oil from the fruit and kernels. Step five: add it to biscuits, chocolate, margarine, soaps, moisturisers and washing powder. At breakfast, when millions of us are munching toast, we're eating a small slice of the rainforest.


From outer space, borneo and sumatra resemble giant emerald stepping stones between Thailand and Australia. Reaching the heart of their still-massive jungles takes days of boat trips and trekking. Gibbons hoot and long-tailed macaques squawk. Mongooses and pangolins scamper through the undergrowth. Large-beaked rhinoceros hornbills soar above the forest. The huge green and black Rajah Brooke's butterfly flutters by.


These rainforests are honeypots for flora and fauna, among the most biodiverse places on Earth. Consider the figures. Sumatra – the size of Spain, owned by Indonesia – has 465 species of bird, 194 species of mammal, 217 species of reptile, 272 species of freshwater fish, and an estimated 10,000 species of plant. Borneo – the size of Turkey and shared between Indonesia and Malaysia – is even richer: 420 birds, 210 mammals, 254 reptiles, 368 freshwater fish and around 15,000 plants.


All these species evolved to live in this unique forest environment. The Sumatran rhino is the smallest, hairiest and most endangered in the world; the Sumatran tiger is the smallest tiger. The black sun bear, with its U-shaped patch of white fur under its chin, is the smallest bear. Some of them are curious in the extreme: the bug-eyed western tarsier; the striped rabbit; the marled cat; and the tree-jumping clouded leopard, which feasts on pygmy squirrels and long-tailed porcupines.


Of all the animals, though, the most famous by far is the orangutan (or "man of the jungle"). With its orange hair and long arms, the orangutan is one of our planet's most unusual creatures. And one of the smartest, too. The Dutch anthropologist Carel van Schaik found that orangutans could perform tasks which were well beyond chimpanzees, such as making rain hats and leakproof roofs for their nests.


The primatologist Dr Willie Smits estimates that orangutans can distinguish between 1,000 different plants, knowing which ones are edible, which are poisonous, and which cure headaches. In her book Thinkers of the Jungle, the psychology professor Anne Russon recalled that one orangutan keeper took three days to solve the mystery of who'd been stealing from the fridge. It turned out that an orangutan had been using a paperclip to pick the lock of its cage, then hiding the paperclip under its tongue.


Along with chimpanzees, gorillas and bonobos, orangutans are great apes, sharing 97 per cent of their DNA with humans, having split from us a mere 13 million years ago. They exist only in these forests of Borneo and Sumatra, and it is their arboreal nature that leaves them so vulnerable to deforestation. Between 2004 and 2008, according to the US Great Ape Trust, the orangutan population fell by 10 per cent (to 49,600) on Borneo and by 14 per cent (to 6,600) on Sumatra. As the author Serge Wich warned: "Unless extraordinary efforts are made soon, it could become the first great-ape species to go extinct."


Native people too, known in Borneo as Dayaks, are under threat. About 10,000 members of the semi-nomadic Penan tribe survive but their traditional lifestyle – which includes harvesting the starchy sago tree – is being felled.


A researcher with Survival International, the London-based human-rights organisation, returned to the UK last month with transcripts of interviews with the Penan conducted deep in the jungle. According to one headman, called Matu, hunters were increasingly returning empty-handed. "When the logging started in the Nineties, we thought we had a big problem," he complained. "But when oil palm arrived [in 2005], logging was relegated to problem No 2. Our land and our forests have been taken by force.


"Our fruit trees are gone, our hunting grounds are very limited, and the rivers are polluted, so the fish are dying. Before, there were lots of wild boar around here. Now, we only find one every two or three months. In the documents, all of our land has been given to the company."


"There were no discussions," said another Penan. "The company just put up signs saying the government had given them permission to plant oil palm on our land."


Indonesia is trying to crack down on illegal foresting, but corruption is rife hundreds of miles from Jakarta. Satellite pictures show logging has encroached on 90 per cent of Borneo's national parks – and according to the United Nations Environment Programme (UNEP): "New estimates suggest 98 per cent of [Indonesia's] forest may be destroyed by 2022, the lowland forest much sooner."


In its 2007 report, "The Last Stand of the Orangutan", UNEP warned that forest rangers were outnumbered and outgunned by logging guards with military training and automatic weapons – and faced "high and sometimes lethal risks" in confronting them. The programme's executive director Achim Steiner wrote: "The driving forces are not impoverished farmers, but what appears to be well-organised companies with heavy machinery and strong international links to the global markets."


In its own way, palm oil is a wonder plant. Astonishingly productive, its annual yield is 3.6 tonnes a hectare compared with half a tonne for soy or rapeseed. Originally found in West Africa, palm oil is uniquely "fractionable" when cooked, meaning its properties can be easily separated for different products. Although high in artery-clogging saturated fat, it is healthier than hydrogenated fats. For manufacturers, there is another significant benefit. At £400 a tonne, it is cheaper than soy, rapeseed or sunflower.


Some 38m tonnes of palm oil are produced globally, about 75 per cent in Malaysia and Indonesia. Borneo's 11,000 square miles of plantations produce 10m tonnes a year while Sumatra's 14,000 square miles yield 13m tonnes.


Since 1990, the amount of land used for palm-oil production has increased by 43 per cent. Demand is rising at between six and 10 per cent a year. China's billion-plus population is the biggest consumer, importing 18 per cent of global supply. About 16 per cent arrives in the EU.


In the UK, almost every major food manufacturer uses palm oil, among them Kellogg's, Cadbury, Mars, Kraft, Unilever, Premier Foods, Northern Foods and Associated British Foods (ABF). Companies typically say they are working to source sustainable supplies – and insist their use is "small", "very small" or "minute".


The US household giant Procter & Gamble, which uses palm oil in detergents, shampoos and soaps, says: "P&G uses very little palm oil – about 1 per cent of a worldwide production of palm and its derivatives." One per cent of global production is 380,000 tonnes a year. P&G says it hopes to source a sustainable supply by 2015 – six years' time.


Right now no multinational can vouch that its supply is sustainable. The Anglo-Dutch household giant Unilever, the world's biggest user of palm oil, is swallowing up 1.6m tonnes a year, 4 per cent of global supply. It admits the product causes huge damage, but believes it has a solution. Together with the World Wildlife Fund (WWF), Unilever set up the Roundtable on Sustainable Palm Oil (RSPO) in 2004. For its first four years – to the frustration of green groups – the RSPO talked, devising eight principles and 39 practical criteria designed to protect native peoples, plantation workers, small farmers and wildlife.


Forty per cent of palm-oil suppliers are now members of the RSPO and it hopes all of them will eventually join. Members promise not to chainsaw any virgin forest; but they are still allowed to chop down "degraded forest" – where some trees have been felled – preventing other trees from re-growing and animals from returning.


Palm-oil plantations are barren places. When vast blocks of palms are planted in straight lines, stretching for mile after mile, 90 per cent of the wildlife disappears. In the words of Junaida Payne, of WWF Malaysia's Sabah office, they are "biological deserts".


Jan Kees Vis, Unilever's director of sustainable agriculture and chairman of the RSPO, says it is "not realistic" to halt palm-oil expansion, but believes much growth can be achieved by raising yields. The best plantations currently yield 10 tonnes per hectare, but in the future this could hit 18 or even 50 tonnes, he says.


The best plantations can obtain RSPO certification for sustainability – but only 4 per cent of global supply (1.5m tonnes) is currently certified sustainable. The first shipment arrived in Rotterdam last November and costs about 35 per cent more than normal supplies. Another scheme, Green Palm, is already bringing prices for RSPO supplies down further, adding just 5 per cent to the cost.


Unilever has publicly committed to sourcing only certified palm oil by 2015. Premier Foods has a date of 2011, United Biscuits 2012. Most companies, however, including Cadbury, Kellogg's, Nestlé, Mars and Heinz, have given no commitment to switch to an RSPO-certified supply. They merely say that their suppliers are members.


As Vis puts it bluntly: "The volume of certified palm oil traded is disappointingly low so far; the reason for this being that many companies are not prepared to pay a premium for certified oil."


Environmentalists fear that the RSPO is itself greenwash, cover for a programme of vicious and unrelenting deforestation. Even the RSPO concedes that its members have subsidiaries who plant palm oil, and who are not bound by – and do not abide by – its rules.


As if this were not enough, in the rush to replace diminishing fossil fuel, palm oil is being mixed into petrol. The EU Biofuels Directive aims to put biofuels in 5 per cent of all fuel pumps. Destroying peat forests for palm oil is especially bad for the climate, as these semi-saturated soils are dense "carbon stores" which release colossal quantities of C02 when they are burnt to make way for palm oil.


In its "Cooking the Climate" report, Greenpeace calculated that the burning of South-east Asia's peat forests – largely for palm-oil plantations – spewed 1.8bn tonnes of greenhouse gas into the atmosphere: 4 per cent of global climate-change emissions from 0.1 per cent of Earth's land. According to Greenpeace forest campaigner James Turner, "The destruction of these forests is a really serious cause of climate change, but some companies are still trying to look the other way. It's time for them to cancel contracts with the worst suppliers, because purchasing power is a highly effective tool in changing this industry."


Conservationists are increasingly wondering whether the wholesale destruction of rainforests to make margarine is the most striking of all examples of environmental lunacy. It isn't just destroying one of the last great wildernesses, its rare animals and some of the remaining people whose ways are at odds with modern living. It also threatens to damage our own lives in the West.


Deforestation causes 18 per cent of Co2 emissions, according to British government figures – a key element in the rising temperatures that in coming decades will alter our world for ever. No one can be exactly sure what climate change will bring but, in Britain, we can expect more flooding and winter gales, drier summers, water shortages, and more food poisoning and skin cancer. The sea will not just sweep over Bangladesh and the Maldives, but possibly threaten low-lying parts of Britain, such as London, too. Meanwhile, millions of people in developing countries with failing agriculture could migrate to northern Europe.


The wealthy Western countries who have already felled their own forests (woods once covered Britain from Cornwall to Caithness) may have to pay more and more to protect those that remain in other parts of the world. At the Copenhagen summit in December, Britain and other countries will press for REDD (Reducing Emission from Deforestation and Degradation) – essentially a scheme for funding jungles in developing countries.


In the meantime, forest campaigners hope that big companies will come under increasing scrutiny over palm oil. The Unilever-backed RSPO wants them to commit to a sustainable supply. Friends of the Earth and Greenpeace say palm-oil use should be reduced or phased out altogether. A few have already done so – PepsiCo, for instance, is phasing out palm oil from its remaining two products. United Biscuits says it has reduced palm oil in Digestives by 65 per cent and in McCoys by 76 per cent since 2005.


So far, companies have managed to avoid much scrutiny over the havoc palm oil is wreaking. For now, it is "only" the native peoples, the orangutans and the other animals of the rainforest who have experienced the most profound changes. They are losing the habitat that they thought would be around for ever.


"When I was a young girl I used to be so happy walking in the forest," one Penan woman told Bruce Parry after trekking overnight to pass on her message. "I used to sing while I was looking for sago. I loved to hear the sound of the wild peacocks, the hornbills and the gibbons, and when I looked at the forest it was lovely."


Palm oil facts


  • 90 per cent of Sumatra's orangutan population has disappeared since 1900. They now face extinction
  • 90 per cent of wildlife disappears when the forest is replaced by palm, creating a biological desert
  • 98 per cent of Indonesia's forests may be destroyed by 2022 according to the United Nations
  • 43 of Britain's 100 top grocery brands contain or are thought to contain palm oil

News: Unsustainable palm oil production threatening the Indonesian orangutan population - Food Biz Daily


04/05/2009 (Food Biz Daily) - Unregulated palm oil production is causing widespread deforestation in Southeast Asia, dislocating natives and threatening the survival of the orangutan.

The United Nations Environment Programme considers palm oil to be the primary cause of deforestation in Borneo and Sumatra. Conversion of hectares of forests into plantations makes the majority of wildlife disappear, including the orangutan, which is on the threshold of extinction. Since 1900, orangutan numbers have declined by 90%, with the rate increasing in recent decades.

Palm oil is present in soap products, chocolates, margarines and more. As per an investigation conducted by the newspaper The Independent , 43 of 100 best-selling brands in the UK were found or suspected to have palm oil, e.g., Cadbury Dairy Milk chocolate bars, KitKat, margarine brand Flora, Persil washing powder, Dove soap, and Comfort fabric conditioner.

The Roundtable on Sustainable Palm Oil certifies only 4 percent of all palm oil production as sustainable.

Cadbury, Kellog’s, Nestle, Mars and Heinz said they are working with suppliers to switch to the sustainable version of the oil and the WWF (formerly, the World Wildlife Fund) urge manufacturers to buy the slightly costlier ( 10% to 35% higher ) sustainable oil.

Originating in West Africa, palm oil is now a $36.5 billion-a-year industry, with annual production touching 38 million tonnes.

Borneo and Sumatra — where rampant corruption sees armed security guards indulging in forest incursions — provide 85% of the worldwide supply.

At the present logging rates, the UN Environment Programme predicts a 98% wipe-out of Indonesia’s forests by 2020.


Rainforest certified Lipton tea reaches U.S. - Reuters


By Marcy Nicholson

NEW YORK (Reuters) - Rainforest Alliance-certified Lipton tea will reach American store shelves for the first time this month, as Unilever aims to put the sustainable logo on all of its tea, a company executive said on Wednesday.

"By 2010, I would expect that the vast majority of our European and United States volumes would be certified sustainable by Rainforest Alliance," Vindi Banga, president of Foods, Home and Personal Care for Unilever, told Reuters.

By 2015, Unilever aims to have all of its tea Rainforest Alliance certified.

Unilever, a European based Anglo-Dutch food and household products maker that owns such well-known brands as Lipton tea and Dove beauty care, accounts for about 12 percent of the world's tea, London-based Banga said while visiting New York.

"Today, virtually half of our Lipton and PG Tips volume is already certified as sustainable," Banga said.

The company began selling tea certified by Rainforest Alliance, a New York-based nongovernmental organization that requires multiple levels of sustainability, two years ago in Europe.

"The prices don't change for the consumer but we do pay a little bit more for the tea as sourced currently. We believe that this is how we should make all our products, they should all be sustainable," Banga said.

Rainforest Alliance certifies farms that meet specific criteria for worker welfare, farm management and environmental protection.

Two-thirds of Unilever's raw materials are agricultural crops and the company is committed to sustaining and improving soil and water health and farmer livelihoods, Banga said.

Unilever's next big project is to use only sustainably certified palm oil for its beauty products by 2015, Banga said.

The company buys about 4 percent of the world's palm oil, he said.

In November 2008, Unilever received its first shipment of palm oil certified by Roundtable on Sustainable Palm Oil (RSPO).

"We are working on all our raw materials," Banga said.

Unilever buys about 7 percent of the world's tomatoes to make products like Ragu tomato sauce and is taking steps to ensure its tomato sources are completely sustainable through its own criteria, he said.

(Reporting by Marcy Nicholson; Editing by David Gregorio)