@ AGROBiz | July-August 2024

As the world ’ s second-largest palm oil producer , Malaysia exported 14.8 million tonnes ( about 80 per cent ) out of the 18.6 million tonnes produced in 2023 . This impressive output allowed Malaysia to supply 23 per cent of the global palm oil market .

Despite these impressive figures , the industry faces significant challenges , particularly in sustainability and market diversification .

To address these challenges , Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani is implementing comprehensive strategies to ensure the continued growth and sustainability of Malaysia ’ s palm oil industry .

“ Palm oil is among the most important sectors of the Malaysian economy ,” said Johari .

FROM FIELDS TO GLOBAL MARKETS

A key focus of Malaysia ’ s strategy is enhancing crude palm oil ( CPO ) production through higher yields while ensuring sustainability throughout the supply chain .

Johari stated : “ Our commitment to sustainability is unwavering . We are ensuring that there are no issues in accessing markets with high sustainability requirements , such as the EU ,

“ The government , through the Malaysian Palm Oil Council ( MPOC ), is actively promoting palm oil efficiency , sustainable production , and responsible labour practices , alongside efforts to counter anti-palm oil propaganda .”

Beyond its traditional role in food production , Johari is keen on diversifying palm oil applications , specifically exploring the potential of palm oil in non-food applications .

“ Palm oil product diversification beyond food applications should be one of our key focus areas . This diversification is driven by the versatility and beneficial properties of Malaysian palm oil ,” Johari noted .

TRACEABILITY IN THE SUPPLY CHAIN

In 2023 , Asia Pacific , Europe , the USA , and the Middle East were the primary importing regions for Malaysia ’ s palm oil exports , which accounted for a significant

How Malaysia is positioning its palm oil industry for sustainable success and global leadership

“ The government , through the Malaysian Palm Oil Council ( MPOC ), is actively promoting palm oil efficiency , sustainable production , and responsible labour practices , alongside efforts to counter anti-palm oil propaganda .”

– Datuk Seri Johari Abdul Ghani

portion of the country ’ s total palm oil export value in downstream exports , including oleochemicals used in personal care , pharmaceuticals , and household products .

The demand for eco-friendly chemicals is rising , and palm-based oleochemicals are gaining traction due to their safety and environmental sustainability . Moreover , the biofuel industry , particularly the production of sustainable aviation fuel ( SAF ) from palm oil , presents promising prospects .

As the aviation industry aims to reduce its carbon footprint , palmderived SAF could play a crucial role in supporting more sustainable air travel .

“ Sectors like oleochemicals , personal care , pharmaceuticals , and biofuels represent the most promising non-food applications for Malaysian palm oil ,” Johari elaborated .

RESEARCH DRIVES GROWTH Research and development ( R & D ) are at the core of Malaysia ’ s strategy to drive innovation and sustainability in the palm oil industry . The Malaysian Palm Oil Board ( MPOB ) oversees R & D efforts , focusing on several key areas :

• Integrated pest & disease management : Focuses on developing strategies to manage pests and diseases that affect palm oil crops . Techniques include biological control , agricultural practices , and the use of biopesticides to reduce chemical reliance and ensure crop health .

• Soil health & carbon sequestration : Ensures that soil remains fertile and productive . Carbon sequestration , which involves capturing and storing atmospheric carbon dioxide in the soil , helps mitigate the industry ’ s carbon footprint and contributes to global climate change efforts .

• Genetic improvement & biotechnology applications : Enhances the traits of oil palm trees , such as yield and disease resistance . Biotechnology applications , including tissue culture and genetic modification , are utilised to develop more resilient and productive palm varieties .

• Climate change adaptation solutions : Develops strategies for palm oil plantations to adapt to extreme weather conditions , such as droughts or floods . These solutions help in maintaining consistent production levels despite environmental changes .

• Environmental impact & biodiversity : Studies in this area aim to reduce the environmental impact of palm oil cultivation , focusing on conserving biodiversity and promoting sustainable land use practices . This research ensures that palm oil production does not compromise the natural ecosystems and wildlife habitats .

• Socio-economic aspects such as smallholder integration : Smallholder farmers play a critical role in the palm oil supply chain . Research focuses on integrating these farmers into the broader industry , providing them with access to resources , training , and markets . This integration helps improve their livelihoods and ensure sustainable agricultural practices . Johari firmly believes that the exploration of innovative and disruptive technologies is crucial for the sustainability and survival of the industry .

A HOPE FOR THE FUTURE

The concerted efforts of Malaysia ’ s palm oil industry stakeholders are steering it toward a sustainable and diversified future . By prioritising sustainability , innovation , and market expansion , Malaysia is not only securing its position as a global leader but also setting a benchmark for the world .

As Johari puts it : “ Our journey is about more than just meeting standards ; it ’ s about forging a future where our industry thrives in harmony with nature and supports the livelihoods of millions .”

Malaysia ’ s palm oil industry is poised to lead by example- taking a thorough and innovative strategy , which will set a precedent for future generations and guarantee their prosperity . – @ AGROBiz