Business

Thursday November 12, 2009

Threat to market access looms

By HANIM ADNAN


KUALA LUMPUR: The climate change and sustainability issues promoted by the “greenies” groups in the West to label palm oil as unsustainable are fast turning into political agendas and will soon become trade barriers imposed by Western countries to hamper the export of palm oil by producing nations, said Malaysian Palm Oil Council deputy chief executive officer Dr Kalyana Sundram.

He said growing concerns over the environmental issue by developed countries could translate into limiting the market access for palm oil through innovative non-tariff trade barriers and levying discriminatory tariffs mainly to protect and promote their own crop industries.

To successfully compete in the developed countries’ markets, palm oil producers had to succumb to the constantly changing “sustainable” requirements imposed by the developed nations and the non-govermental organisations (NGOs), Kalyana said at a panel discussion on “Trade and Environmental Challenges: A Reconcilliation” at the close of Malaysian Palm Oil Board (MPOB) International Palm Oil Congress 2009 (PIPOC 2009).

Indonesia Palm Oil Commission president Dr Rosediana Suharto said: “Fighting with the NGOs on the issue of carbon emissions in the peatland areas is a sheer waste of energy.

“Talking to industry people either business-to-business or government-to-government will be a much better platform for oil palm planters to be heard.”

She claims that NGOs would change their objectives depending on where they got their financial resources from.

Indonesia which is the third largest carbon dioxide emitters in the world, is heavily criticised by NGOs given its oil palm plantations’ expansion into peatland areas.

By 2010, Indonesia’s palm oil production is expected to increase by about 21 million tonnes.

To counter the negative claims on palm oil, United Plantations Bhd director of research Dr Gurmit Singh said Malaysia, for example ,must form a strong, articulate team to challenge the unfounded accusations by NGOs and developed nations that are against palm oil.

In this regard, the work by the Roundtable on Sustainable Palm Oil certification programme for oil palm planters was honourable, he said. However, the RSPO needs to iron out the issues on the greenhouse gas emission by the EU with its planter members, as “many believe that the strict RSPO eight principles, 39 criteria and 25 indicators were enough to address the issue on sustainability.”

Netherlands Embassy in Malaysia’s agriculture counsellor Adrie de Roo said sustainability was the key political issue that was of priority to the Netherlands.

He said about one million tonnes of palm oil was exported to Rotterdam annually.

“There are many consumers like Unilever as well as Malaysian palm oil companies with refineries in the Netherlands like IOI Group and Sime Darby, providing jobs to our people,” he said, adding that the country has an unbiased and balanced position on palm oil.

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Palm biodiesel exports rise despite NGO attacks

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