Anti-Palm Oil Campaign Losing Credibility

GreenPeace’s anti-palm oil campaign claiming environmental damage by the practices of palm oil cultivation has been discovered to be full of false allegations and manipulation of facts against the palm oil farmers.

World Growth published the recent statement:

The revelation of a second instance within a few weeks of contrived claims, in this case misuse of herbicide by United Plantations, to discredit Southeast Asian palm oil producers shows the global campaign by environmental activists is rapidly losing credibility.

“The staged attack against United Plantations, a respectable palm oil producer compliant with the Roundtable on Sustainable Palm Oil (RSPO), is part of a failing global campaign by environmentalists and their financiers to ruin the reputation of producers and then greenmail customers like Kraft to drop them as a supplier, harming an industry that has lifted millions of Malaysians out of poverty.” (World Growth Press Release, September 14, 2010)

In light of the above, we invite you to get the exact facts on palm oil production from the 2nd Palm Oil Summit, and learn the truths about what the industry’s outlook is all about. The conference will be aptly focused on the theme of “Achieving Sustainability through Increased Yield Performance”. For more information on the conference program, please click here.

Deforestation

The truth about oil palms and carbon sinks

Dr Lulie Melling tells OOI TEE CHING about the importance of peat soil research FORESTS are often called “the lungs of the world” — huge carbon sinks absorbing carbon dioxide emitted by the industrialised world, and producing the oxygen we need to breathe.

At the same time, agriculture is seen as “polluting” in the sense that land clearing and development release greenhouse gas into the atmosphere, contributing to global warming. Environmental organisations such as Greenpeace, Friends of the Earth and Wetlands International as well as their local affiliates take this view further by lobbying for a moratorium on planting oil palm on peat soil and the imposition of greenhouse gas criteria on palm oil exports.

In 2007, Wetlands and the Netherlands-based consultancy Alterra issued a report titled PEAT-CO2 Assessment of CO2 Emissions from Drained Peatlands in Southeast Asia alleging the region’s peatlands are going up in smoke, emitting tonnes of carbon dioxide and causing global warming.

Kuching-based Tropical Peat Research Laboratory (TPRL) director Dr Lulie Melling argues that if such a claim is true, then millions of Sarawakians would have choked to death.

In reality, Sarawak’s oil palm plantations have been sequestering carbon dioxide and generating oxygen that goes back into the atmosphere while creating carbon sinks and stocks.

“People tend to forget that oil palms are trees and that they absorb carbon dioxide in the air, only to release oxygen and in the same process, convert solar energy into biomass,” says Melling in an interview in Kuching.

“Trees are trees, they function the same whether they are part of the forest or plantations.

“Since tree plantations are perennial, they are more efficient carbon sequesters than seasonal oilseeds like soy, rapeseed and sunflower. Oil palms can feed on year-round tropical sun and rainfall to create biomass, i.e. carbon stock, without any soil disturbance compared with seasonal oilseeds.” When peer-reviewed studies by soil scientists were adduced at the Round-table on Sustainable Palm Oil (RSPO) meetings, it became evident that reports containing alarmist predictions were founded on calculations riddled with statistical bias and lacking in real evidence.

Last year, Brinkmann Consultancy’s recommendation to include greenhouse gas emission from peatland as a criterion for RSPO certification was rejected. TPRL’s findings had, in part, showed soil respiration at oil palm estates planted in peat had lower greenhouse gas emissions than that of untouched peatland.

This is one instance where soil research allows you to differentiate facts from mistaken assumptions about planting crops on peat soil. Good soil management, be it peat or mineral-based, is the basis for sustainable food production.

Melling says that many of the current assumptions about tropical peatland were based on the understanding of temperate peatland research.

“Tropical peat is different from temperate peat. First and foremost, tropical peat is mainly woody material, whereas temperate peat is made up of spaghnum and sedges.” The woody nature of tropical peat means there is higher lignin content. Lignin, being a more “recalcitrant” carbon than labile carbon of cellulose materials in temperate peat, highly influences the peat decomposition rate.

Furthermore, the acidic condition of tropical peat inhibits microbial population, indirectly slowing the breakdown rate and therefore greenhouse gas emissions. Heavy and frequent rainfall in Sarawak, which helps to maintain moisture content in the peat soil, also decelerates decomposition and carbon dioxide emission.

Melling goes on to explain that unlike the northern hemisphere where temperate peatland is developed for energy and horticulture, oil palm plantations in the tropical countries only use the peatland as a planting medium.

On current understanding that drainage of peatland for agriculture leads to large carbon losses from oxidation, Melling says it is “not entirely correct”. “Peat subsidence is also due to compaction, consolidation and shrinkage.

“Water management and compaction is a prerequisite to any agriculture development on tropical peatland. Consolidation of the peat increases bulk density and capillary rise, resulting in higher water-filled pore space of the peat. This leads to a more anaerobic condition, which results in a lower decomposition rate and less carbon dioxide emission.” Over the years, Melling has found that people, who are ill-informed, jealous or have vested interests, tend to get offended when she speaks out on issues. At such highly-charged meetings, it helps to stick to a simple rule: “I just do my job; I don’t try to do someone else’s job, and I don’t let anyone else do my job.” She takes a sip of tea and leans back on her office swivel chair.

“When I say I do my job, it also means I do not do someone else’s job. This is because scientists are not in the business of saving the world, nor are we vegetable oil salesmen. Science is about the process, not the purpose.” On not letting anyone else try to do her job, Melling attributes it to the highly politicised topic of climate change, especially on greenhouse gas emissions.

In many international conferences on tropical peatland management and greenhouse gas, she has witnessed how some activists and politicians, skilful at straw man arguments, were quick to label people they disagree with as “taking sides with greedy oil palm tycoons who do not care about the environment” and are “likely to condone widespread forest destruction”.

While most local scientists become silent when debates heat up and arguments get louder, Melling rises to the occasion.

Soon after she presents her data, it becomes apparent that the critics’ claims are full of speculations. Until today, these environmental activists and politicians continue to claim expertise in tropical peat despite having never waded into Sarawak’s itch-inducing and acidic peat swamps.

As early as 1995, Melling has been studying tropical peat. Despite escalating citations of her peer-reviewed research papers, she remains humble and says there is still much to learn. Recently, Melling and her team at TPRL set out to verify whether a national park, logged-over forest and oil palm plantation absorb more greenhouse gas than they emit.

Three 40m-tall Eddy Covariance towers were set up in an oil palm plantation in Sibu, a logged-over forest and Maludam National Park in Betong division. They have built-in lightning protection and the sensors are fully powered by solar panels. These instruments measure carbon flux and concentration, wind, moisture, sunshine hours, rainfall, humidity, soil moisture and water table.

When asked to comment on Malaysia’s aspiration to become a knowledge-based economy, Melling says the government needs to allocate more funds for peat soil research.

“Through Science, farmers are able to carry out sustainable agriculture that satisfies both the economic and environmental needs of food production.”

Source: The truth about oil palms and carbon sinks 

 

Rainforest Centre to be developed as open zoo

THE Malaysian Rainforest Discovery Centre in Sabah will be further developed as an open zoo concept.

It is one of the efforts to launch Malaysia as one of the world’s premium eco-tourism destinations.

While the rainforest centre will showcase Malaysia’s wild flora and fauna, the Malaysian Marine Discovery Centre will focus on the marine species.

Total funding required is estimated at RM896mil for over a period of 10 years (2010-2020) and the bulk of it will come from private sector.

The Natural Resources and Environment Ministry and the Tourism Ministry will set up the Global Biodiversity Hub (GBH) Board of Management which will comprise representatives from the federal and state governments, private sector, the academia and non-governmental organisations.

After a one-year interim period, it will be managed as a non-governmental body with federal and state government representatives participating to ensure that the policies are in line with the national objectives.

Last year, the tourism industry generated RM36.9bil in gross national income (GNI), making it the fifth largest industry after oil, gas and energy, financial services, wholesale and retail, and palm oil.

It hopes to reap RM103.6bil in GNI in 2020 and increase higher yield from not only increased tourist arrivals (24 million in 2009 to 36 million by 2020) but also the amount they spend.

The ministry targets RM168bil tourist receipts by then and this would mean that the industry will grow by three times and contribute RM3bil receipts per week by 2020.

The 12 entry point projects (EPPs) for tourism are divided into five themes that cater to different segment of tourists such as the avid shopper, nature lover, business traveller and families on vacation.

Another highlight is the development of eco-nature integrated resorts in Sabah.

A private investor who has the land, financial resources and industry expertise has been identified for the project and will work with the Sabah state government and related federal agencies to obtain the necessary approvals before 2011.

The first phase of the development is expected to be ready by 2013.

Total investment is expected to be RM6.7bil with RM6.1bil from the private investor and the rest from the Government while the GNI is expected to be RM707mil with 7,700 jobs created by 2020.

Other EPPs include the development of a Straits Riviera, modelled after the French Riviera cruise experience, positioning Malaysia as a duty-free shopping destination and turning the Bukit Bintang area as a premier shopping precinct with seamless connectivity, establishing premium outlets in three locations and increase flight frequencies and air rights to 10 priority cities.

In order to successfully implement all the EPPs, a cumulative total of RM136.6bil (3% public and 97% private) will be required from 2011 to 2020.

Firm vegetable oil prices, including palm oil, seen in H1 2011

KUALA LUMPUR: Global vegetable oil prices, including that of crude palm oil (CPO), are expected to remain firm in the first two quarters of 2011 should soybean production from South America stays flat due to stagnating planted a areas, said Malaysian Palm Oil Council (MPOC) chief executive officer Tan Sri Dr Yusof Basiron.

Soybean production in South America next year would be the main factor in determining the price direction of vegetable oils in the first half of next year.

“At this point of time, the projected lower soybean production may further deteriorate as dry spell remain a teething factor for the output,” Yusof said.

He said this in his summary after presenting a paperwork on Glimpse of 2011 – Pointers for 2011 on Global Oils and Fats Trade at the 3rd International Palm Oil Trade and Seminar yesterday.

In addition, an increase in soyoil application for biodiesel production in South America was expected to reduce the availability of soyoil traded globally.

However, CPO production from major producers Malaysia and Indonesia next year may rise substantially due to the delay in potential yield this year as a result of El Nino and La Nina effects, he added.

Palm oil was also expected to continue to be the growth leader in output, with Malaysia and Indonesia as the main supplier for 2011.

For 2010, Yusof said the average CPO price was projected to stay above RM2,600 per tonne, given the firm crude mineral oil price, which had supported the palm oil price so far, “is expected to last for the rest of this year.”

While demand is projected to increase by 4.3 million tonnes this year, the performance of oils and fats production in the last quarter would determine whether there will be any changes in production volume projected in 2010.

He said: “The United States, the European Union (EU) and China are on the radar as their major oil crops are due for harvesting and entering the market at this period.

“The estimated production remains intact and this has been factored into the current CPO price trading at above RM2,700 per tonne.”

Yusof said price would also be supported by the greater role of palm oil in satisfying global demand this year. In addition, the La Nina effect on palm oil production in the second half of this year could likely increase palm fruit moisture content and lower extraction rates, thus reducing harvesting rounds.

Based on OilWorld estimate, La Nina phenomenon would likely reduce Malaysia’s palm oil production by 200,000 tonnes.

US-based Green Earth Fuels LLC executive vice-president (government and regulatory affairs) Jeffrey M. Trucksess said palm biodiesel (palm methyl ester – PME) had made significant inroads in the US biodiesel market in recent years and had tremendous potential.

“However, significant political, regulatory and public relation issues can derail this future,” he said.

PME producers from Malaysia must proactively manage the public perception on palm oil in the United States and Europe by providing more education to policymakers there, actively participate in regulatory bodies and promote sustainability standards.