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Malaysia seeks new markets for palm oil as EU threatens to impose tougher green regulations

An Indonesian worker on an oil palm farm in Malaysia.

An Indonesian worker on an oil palm farm in Malaysia. | Photo credit: Special arrangement

Facing criticism from Western markets over declining populations of orangutans, Malaysian tigers and elephants, Malaysia is seeking to expand its palm oil trade with India and other Asian countries. and Africa. Malaysia’s Ministry of Plantations and the Malaysian Palm Oil Council (MPOC) say smallholder farmers’ incomes have improved through palm oil cultivation and the government is committed to protecting biodiversity of the country.

Malaysian Minister of Plantations and Commodities Johari Bin Abdul Ghani said the edible oil sector faces many challenges, from ever-changing market dynamics and changing trade policies to increasing scrutiny of sustainability practices and environmental impact. “It’s not just about national challenges. They are global in nature and affect all players in the oils and fats industry. However, the Malaysian palm oil sector is committed to turning these challenges into opportunities,” he said, adding that the country was adopting sustainable practices, investing in innovative technologies and strengthening partnerships to meet the global standards.

As the European Union plans to implement the European Union Deforestation Regulation (EUDR) until December 30, 2025, Malaysia is focused on ensuring sustainable agricultural practices. According to Malaysian government data, Malaysia’s tiger population, which was 3,000 individuals in the 1900s, has fallen to fewer than 150 individuals in 2020 due to habitat loss and poaching. There are 2,000 elephants left, according to 2008 data, and the population is increasing under some assumptions. The orangutan population has been stable for 15 years, between 11,000 and 15,000 individuals today. There were more than 1,00,000 of them in the 1900s.

MPOC President Carl Bek-Nielsen said there is a misconception that sustainability is only the interest of the West. “It’s not. Sustainability is just as important for other countries. Young people today want to do things the right way,” he said, adding that without economic viability, sustainability is not possible. “You must ensure that companies can generate profits to create jobs, build houses for their employees, build biogas plants, and build facilities that run without fossil fuels. ensuring that environmental compatibility exists. This means that you do not put profits before the environment,” he said, adding that Malaysia ensures that International Labor Organization standards are applied in. oil palm fields so that palm oil is produced sustainably.

A palm fruit harvest on an oil palm farm.

A palm fruit harvest on an oil palm farm. | Photo credit: Special arrangement

Oil palm globally occupies 0.5% of the total agricultural area but it produces 35% of edible oils and fats. Oil palm represents 55% of total edible oils and fats. While many countries like India are net importers of edible oils. But the net exporters are only five countries. “Indonesia and Malaysia are like the ‘Mike Tyson of this sector,” he said, adding that all of Malaysia is demanding a level playing field.

87% of palm oil production takes place in Indonesia, Malaysia and Thailand. “A third of the European Union budget is used to subsidize its farmers. The EUDR is a futile and poorly thought out regulation. We have asked European lawmakers to rethink this issue,” he said, adding that if implemented, Europe would face difficulties in purchasing not only palm oil, but also coconut and coffee.

MPOC CEO Belvinder Sron said environmental pressure from sustainability has stopped deforestation. “If you cut down the jungle, you won’t be able to sell oil in some markets,” she said, adding that hundreds of thousands of families in Malaysia have been uprooted from their properties because of the cultivation of the jungle. ‘palm oil. She said Malaysia is strictly committed to maintaining 50% of land as forest and no more land will be used for oil palm cultivation and the focus is on increasing yield. The average yield is 3.2 tonnes of palm oil per hectare. The government aims to implement vanities that can extract up to 5 tonnes of oil per hectare.

She said India’s increase in indigenous production was not a problem for Malaysia. “We believe that India and Malaysia can work together to ensure food security. The Indian oil palm mission does not pose a threat to us. But it’s a better measure for the majority of the population,” Ms. Sron said.

She said MPOC is trying to counter the campaign against Malaysian palm oil with facts. “We are serious about producing sustainable palm oil. We preserve our forests, i.e. 54%. 17% of the total land area is devoted to palm oil cultivation. There is no more expansion,” she maintained.

(The correspondent was recently in Malaysia at the invitation of MPOC)