July-August . 2024 | @ AGROBiz

Strengthening palm ties with China

BY ADELINE ANTHONY ALPHONSO

Henriette Faergemann , First Counsellor for Environment , Climate Action , and Digital Cooperation at the European Union Delegation to Indonesia and Brunei Darussalam , discussed EUDR implementation updates , including its FAQ site , guidance documents , Information System , EU Observatory on Deforestation platform , Country Benchmarking , and EU engagement with producing countries . She said that the EU supports national sustainability certification schemes like the MSPO . The schemes cannot replace the due diligence statement , but MSPO information can help EU operators and traders perform due diligence . She acknowledged Malaysia ’ s readiness and reaffirmed the EU ’ s willingness to address Malaysian exporters ’ and EU operators ’ technical challenges .

MPOC CEO Belvinder Sron said : “ Malaysian exporters have made significant financial and technical investments to meet the EUDR requirements , focusing on

The visit , which took place from July 8 to 12 , focused on promoting Malaysian agricultural commodities in one of the world ’ s largest markets .

The Ministry of Plantation and Commodities revealed that the visit resulted in the signing of four memoranda of understanding ( MoUs ) between Malaysian palm oil producers and Chinese businesses .

These agreements were formalised at the 15th China International Cereals and Oils Industry Summit in Nanjing on Jul 11 .

The MoUs featured four significant partnerships : Kuala Lumpur Kepong and BOCE Trade Service to collaborate on the export of tocotrienols ; Taobao ( China ) Software to assist Able Perfect Group in expanding its digital market footprint ; Taobao will also join forces with Sawit Kinabalu Group for crude palm oil transactions ; and JF Nutritech will work with Palmort Food Tech ( Shanghai ) to incorporate red palm oil into animal feed .

Alongside Chan , the signing was attended by Malaysian Palm Oil Board ( MPOB ) Director-General Ahmad Parveez Ghulam Kadir and China Chamber of Commerce for Import / Export of Foodstuffs , Native Produce , and Animal By-products ( CFNA ) President Cao De Rong .

Chan highlighted that Able Perfect , an independent palm oil refinery based in Port Klang , is poised to increase its market presence in China , especially in the refined palm oil and palm shortening segments . This trade deal is estimated to result in a business volume of about RM200 million .

The minister stated that the MoUs will result in new sectors being included in the trade of palm oil products . These include introducing tocotrienols , a powerful type of vitamin E derived from palm oil , into the health product industry

geolocation , legality information , and supply chain traceability .

“ However , many small farmers in the palm oil supply chain face difficulties and risk exclusion from the supply chain . Despite these efforts , providing the necessary due diligence information remains challenging due to the complexities of the palm oil supply chain .”

Commenting on the Malaysian palm oil trade with the EU , Belvinder added : “ EU imported 2.66 million tonnes of palm oil and palm products from Malaysia in 2023 and is also a significant export market for Malaysian palm oil ( ranking third after India and China ).

“ EU has been and will continue to be an important market for Malaysia , but the EUDR is increasing the cost of doing business in Europe . The Malaysian palm oil industry will explore opportunities in other global markets that are more accessible and equitable , especially for smallholders .” – @ AGROBiz and leveraging Taobao ’ s well-known e-commerce platform to improve online B2B and B2C sales channels .

Chan said : “ Malaysian companies must focus on high-value-added and high-quality productions to remain competitive in the global market .

“ With Malaysia ’ s annual palm oil production maintained at around 18 million tonnes , it is crucial to adhere to the standards of the EU Deforestation Regulation and sustainable development principles .”

While there , Chan facilitated a business matching session with

( PHOTO BY THE STAR )

THE Malaysian Palm Oil Council ( MPOC ) recently welcomed a delegation from the United Kingdom to demonstrate Malaysia ’ s palm oil industry ’ s sustainable practices and socioeconomic impact . This initiative was focused on promoting the Malaysian Sustainable Palm Oil ( MSPO ) standards and fostering international collaboration .

The MPOC , in partnership with Wild Asia , a social enterprise based in Kuala Lumpur , arranged visits for the UK delegates to tour three smallholder plantations and Genting TrusHidup Oil Mill in Sandakan , Sabah- gaining firsthand insights into sustainable palm oil production processes .

Additionally , the delegation visited the Sepilok Orangutan Rehabilitation Centre and the Borneo Elephant Sanctuary in Kinabatangan , highlighting Malaysia ’ s commitment to around twenty Chinese and Malaysian companies to share ideas and investigate possible avenues for cooperation in the palm oil trade .

These initiatives seek to deepen bilateral palm oil collaboration , so promoting reciprocal economic development and win-back results for China and Malaysia .

Chan also mentioned that Chinese authorities approved the use of palm tocotrienols in food applications in March of this year , and he is optimistic that the overall value of these trade deals will grow in the coming years .

One of several activities during the visit by UK palm oil stakeholders organised by MPOC .

wildlife conservation .

Further illustrating the scope of palm oil operations , the visitors explored SD Guthrie ’ s Palm Oil Experience Centre ( POEC ) in Carey Island and smallholder Felda plantations in Sungai Tengi Selatan , Kuala Kubu Baru . These tours provided a comprehensive view of large-scale and smallholder operations within the Selangor region .

The visit concluded with a dialogue session , during which UK representatives and local palm oil stakeholders discussed the MSPO standards .

This session facilitated the exchange of ideas and enhanced comprehension of Malaysia ’ s endeavours to produce sustainable palm oil .

Moreover , the initiative underscored Malaysia ’ s efforts to align with the UN Sustainable Development Goals . – @ AGROBiz