Palm oil planters get wise with bird of prey pest control

21/04/2011 (Reuters) - The palm oil industry has gone bird crazy by drafting owls to combat the menace of rodent pests, hoping in the process to burnish its green credentials and save money.

Leading Southeast Asian producers of the vegetable oil have tried different pest control schemes over the years, from snakes to poisons, but the high success rate -- and low cost -- of owls has prompted more planters to turn to them for help in reducing damage.

Some even have designated "owl trainers" who tend the birds from when they are still in the shell.

"We are using owls in our South Sumatra estates," said Michael Kesuma, head of investor relations at Indonesian palm oil producer Sampoerna Agro, which has taken such pains to introduce the birds that houses have been built for them in some areas.

"In those problem areas, I personally have seen the results of having owls. At the bottom of the owl houses, which are on a trunk, you see rat or rodent bones -- they are doing their job."

Malaysia and Indonesia account for more than 90 percent of the world's supply of palm oil, while other smaller producing nations include Colombia, Benin, Kenya and Ghana.

The edible oil, which originates from Africa, is used to make everything from biscuits to ice cream.

But according to the green group Deforestation Watch, crop losses caused by rats feeding on the palm fruit has been estimated to be around 5 percent of the oil yield.

Enter the owl, usually a nocturnal bird of prey, which eats mainly small mammals like mice, voles and shrews -- prime palm oil pests.

Barn-owls, the breed most commonly used on palm plantations, have a large heart-shaped face but have suffered declines over the past fifty years due to intensive agricultural practices.

They first appeared on palm plantations more than 20 years ago and have proved quite effective, palm associations say.

THREE TO FIVE RATS PER DAY

"The (plantations) say it's cheaper because they can decrease costs by 50 percent compared with using chemicals," said Chaerul Saleh, a biologist at WWF-Indonesia.

"They are barn-owls ... they can eat three to five rats every day. It is using a natural predator."

Indonesian palm oil producer BW Plantation (BWPT) says owls now save the firm about $300,000 each year that would otherwise have been spent on poisons.

"We have an owl trainer who takes care of our owls, starting from the egg until they mature and are then released into the field," said Kelik Irwantono, corporate secretary at BWPT.

"When an owl egg is found, the owl trainer will monitor this and eventually take the young owl to be placed in our owl training camp," added Irwantono.

The firm introduced owls in 2009 and now has about 250 barn owls on its estates.

"After being released into the field, the owl is naturally free to control the rat population," Irwantono said.

And there's an additional side benefit unseen with either snakes or poisons, palm associations said.

"Investors who visit our plantation all want to take an owl home with them," said Sebastian Sharp, head of investor relations at BWPT. "They are very beautiful."

Barn owl 

 

Malaysia's Resource-Rich Sarawak State

 

18/04/2011 (Reuters) - Malaysia's Sarawak state, which goes to the polls on Sunday, is rich in resources such as natural gas, timber and crude palm oil.

Following is a summary of the key commodities and projects in the state located on Borneo island:

OIL & GAS

* National oil company Petronas operates one of the world's largest liquefied natural gas (LNG) complexes in Sarawak with eight production trains that have an annual capacity of 24 million tonnes.

* Shipments of Sarawak's LNG meet a large chunk of demand from South Korea, Taiwan and Japan. In 2007, LNG from Sarawak was also shipped to China.

* Petronas said it discovered new fields offshore Sarawak that had 100 million barrels of oil and 0.2 trillion standard cubic feet of gas in place. The discovery could see oil majors such as Shell (RDSa.L: Quote) and ExxonMobil ask for more production-sharing contracts.

TIMBER

* Malaysia is the world's fourth-largest exporter of tropical timber with the bulk of the shipments coming from Sarawak where most of the timber barons have their company headquarters.

* Exports are falling as Sarawak now allows only 40 percent of the state's production to be shipped out, while 60 percent must be used for the domestic timber processing industry.

* Analysts have raised their target prices for Sarawak timber firms such as Rimbunan Hijau Group's listed unit Jaya Tiasa , WTK and Samling as Japan will need timber to rebuild after the March 11 earthquake and tsunami.

* Some investors are shunning several of these firms based on their environment track record. Norway has barred its $550 billion sovereign wealth fund from investing in Samling and its unit Lingui Development over allegations of environmental damage in Sarawak.

PALM OIL

* Sarawak accounted for more than a tenth of total palm oil production of 17 million tonnes in 2010. Key planters in the state include Sarawak Oil Palm and Sime Darby . Malaysia is the world's No.2 palm oil producer.

* Last week, an industry body for eco-friendly palm oil censured IOI Corp for green and social violations in Sarawak and threatened further sanctions if the planter did not resolve the issues.

* Wetlands International and Dutch remote sensing institute Sarvision said large areas of carbon rich peatswamp forests were being destroyed in Sarawak to make way for estates.

POWER GENERATION

* Sarawak plans to double its hydropower capacity to 6,000 megawatts (MW) in 2015 by building five more dams to complement the Bakun and Murum dams that have a combined capacity of more than 3,000 MW.

* State government officials have declined to name a price for the expansion but they are counting on investors like China's state run power grid operator to help build the dams to exploit Sarawak's rivers.

* Sarawak Energy, which manages the power assets in the state, said it was in talks with 20 energy customers including smelters and processors on power tariffs.

SMELTERS

* Several big ticket aluminium projects have been announced but none has been confirmed pending the finalisation of the power purchase agreements, which could take place at the end of 2011.

* The biggest is Rio Tinto's $2 billion smelter joint venture with Cahya Mata Sarawak . The plant will have an initial annual capacity of 720,000 tonnes with an option to expand to 1.5 million tonnes.

* Another mega project is the 330,000-tonne aluminium smelter by Aluminium Corp of China with a local partner that is estimated to cost $1 billion.

* Projects in the pipeline include Australian OMH's proposed manganese plant in Sarawak and Tokuyama's planned $780 million polysilicon processing plant. [ID:nL3E7FE2DN]

* Press Metal has started operating its 120,000- tonne capacity aluminium smelter in Sarawak in which Japan's Sumitomo Corp has an equity stake. The plant is set to be the first customer of power from Bakun dam. The Malaysian firm also has a second phase expansion plan for a 240,000-tonne capacity plant in Sarawak.

PRECIOUS METALS

* Canadian miner Olympus Pacific Minerals has raised its stake in a small gold field in Sarawak that has about 1.8 million ounces in reserves. 

Sarawak

Opinion Piece Defends Palm Oil Biodiesel

14/12/2010 (Domestic Fuel) - A decision by Hawaiian Electric Co. (HECO) to build a biodiesel plant that will convert palm oil into biodiesel to be used by the utility to produce electricity has garnered the ire of some environmentalists, who decry the use of palm oil for the green fuel.

But this opinion piece in the Honolulu Star Advertiser defends the plant. Tom Tanton, president of California-based T2 & Associates, an energy technology and economic development firm, points out that the palm oil will come from Malaysia, a country that has committed to conserving 50 percent of its forests … much more than the 10 percent average under United Nations agreements:

Contrary to claims from the German environmental group leading the campaign against the HECO plan, palm oil is the most sustainable biofuel on the planet. More fuel can be produced on a smaller footprint from the oil palm than alternative biofuels such as corn-based ethanol or German rapeseed oil.

Palm oil is a perennial crop that can be converted to biodiesel, while other vegetable crops like soya that can create biodiesel are annual. Palm oil requires less tillage, resulting in much fewer greenhouse gases released into the atmosphere. It also requires considerably fewer energy inputs to grow and maintain.

In a recent statement, HECO correctly stated “biofuels are a part of Hawaii’s clean energy future. Biofuels allow us to switch from ‘black’ to ‘green’ fuel in our existing generators, reducing dependence on and vulnerability to imported oil.”

Of all possible biofuels, palm oil is king for its affordability, efficiency and eco-friendliness. Denying the HECO agreement would hamper wider adoption of sustainable practices worldwide.

The piece goes on to point out that some domestic sources of biodiesel feedstock, such as jatropha, aren’t scalable for a plant like this one. And, right now, Hawaii doesn’t have enough other renewable energy sources, such as wind, solar and geothermal, to be cost-effective. Tanton concludes that this palm-to-biodiesel plant will help the Aloha State meet its energy needs, while providing jobs for an impoverished part of Malaysia.

Malaysia