�AGROBiz � �AR��-A�R�� . 2024

It ’ s critical to address misconceptions and allegations against palm oil

BY ZAFIRAH ZAFRUDDIN AND ADELINE ANTHONY ALPHONSO

He warned retailers about the consequences of selling products with labels discriminating against palm oil . The Ministry of Plantation and Commodities ( KPK ) is partnering with the Domestic Trade and Consumer Affairs Ministry ( KPDN ) to combat discrimination against palm oil in Malaysia .

Johari said imported products that discriminate against palm oil will face fines of up to RM250,000 under Section 69 of the Trade Description Act 2011 . The Act prohibits discrimination or boycott against palm oil products in business activities , advertisements or trade expressions .

On Mar 9 , 2024 , a memorandum of understanding ( MoU ) was signed between Malaysian Sustainable Palm Oil ( MSPO ) and FGV Holdings Berhad ( formerly known as Felda Global Ventures Holding Berhad ). The MoU permits using the MSPO logo on “ Saji ” cooking oil and its culinary range , marking a significant step in promoting sustainability and halal standards within the palm oil industry .

MANDATING THE USE OF THE MSPO

LOGO

Johari ( pic ) spoke to the media after the launch , saying : “ We see many imported products from abroad which have nothing to do with palm oil , do not have palm

oil content , but the packaging states ‘ palm-oil free ’.

“ We have laws . Our products should not be discriminated against . In Indonesia , you can ’ t find this .”

He also mentioned on a Facebook post that the Malaysian Palm Oil Council ( MPOC ) had surveyed to identify products labelled discriminatory against palm oil . The survey findings pointed out that of 251 premises surveyed around the Klang Valley , as many as 80 were found to display products labelled ‘ Without Palm Oil ’.

To further support the palm oil industry , discussions were underway between KPK and the Department of Islamic Development Malaysia ( JAKIM ) to mandate the use of the MSPO logo on all palm oil-based products sold in Malaysia .

Johari believed the MSPO logo signified the country ’ s commitment to environmental sustainability and responsible practices in the oil palm sector . “ The move could also expand MSPO branding at the domestic and international levels while reinforcing the country ’ s commitment to becoming a sustainable palm-producing country in the world ”, he said .

ADDRESSING ALLEGATIONS

Meanwhile , in a recent interview with TV3 , Johari highlighted the importance of recognising Malaysia ’ s efforts to promote sustainable palm oil production .

Johari refuted allegations that Malaysia ’ s palm oil production operations were not environmentally responsible . The MSPO certification is a testament to the industry ’ s environmental and social responsibility commitment . The Malaysian Sustainable Palm Oil ( MSPO ) certification sets rigorous sustainability standards , reflecting the industry ’ s commitment to responsible practices . “ If you look at the effectiveness and efficiency of using land and compare that with all the edible oils in the world , palm oil is the most efficient edible oil for land u s e . Therefore , if you talk about deforestation , this is the best edible oil that contributes to the least deforestation in the world ,” he said .

In addition , he stated that the MSPO accreditation was a rigorous framework that guaranteed the protection of the environment and the implementation of ethical principles within the palm oil industry .

The MSPO scheme examines oil palm farms and processing facilities to prevent biodiversity loss , conflicts over land , deforestation , and forced labour . Surprisingly , by the end of January of the previous year , more than 97 per cent of oil palm plantations and 98 per cent of palm oil mills in Malaysia had received MSPO certification , evidence of the industry ’ s dedication to preserving the environment .

THE EUDR MUST BE AMENDED

As a result of the European Union ’ s Deforestation Regulation ( EUDR ), which mistakenly identifies palm oil as a main driver of deforestation worldwide , Malaysia ’ s efforts to win acceptance for MSPO certification have gained attention .

In November 2021 , the EUDR was implemented to reduce the deforestation caused by agricultural products consumed within the EU . Prime Minister Datuk Seri Anwar Ibrahim has lobbied for amendments to the EUDR , highlighting the need for the EU to acknowledge Malaysia ’ s sustainability activities .

This is a significant development . Malaysia and Indonesia have voiced concerns that the EUDR may disproportionately negatively impact small farming operations and disrupt the global supply chain for palm oil .

It has been claimed that EU officials are contemplating delaying specific components of the EUDR in response to opposition from Malaysia and other developing nations . It is not anticipated that the proposed “ high risk ” and “ low risk ” labels will be enforced by the initial deadline of Dec 31 this year .

These designations , which might have significant implications for exporting countries like Malaysia , are not expected to be implemented .

Indonesia and Malaysia , the two countries that produce the most palm oil in the world , have been actively lobbying against rules that they consider discriminatory and target their agricultural export business .

Concerned over the deforestation law ’ s impact on the sector , Malaysia has even threatened to stop palm oil shipments to the European Union . – @ AGROBiz