Malaysia’s palm oil is deforestation-free but the EU ban may impact smallholders

Published 2022년 12월 13일

Tridge summary

The Malaysian Palm Oil Board (MPOB) has expressed concerns over the new European Union (EU) import ban, which aims to curb deforestation by targeting commodities sourced from deforested land after 2020. While emphasizing that Malaysian palm oil and products are deforestation-free, MPOB director general, Datuk Dr. Ahmad Parveez Ghulam Kadir, points out that the ban could increase administrative and production costs for the industry, especially affecting smallholders. He also highlighted Malaysia's commitment to sustainable palm oil production under the Malaysian Sustainable Palm Oil (MSPO) certification and efforts to balance environmental protection with socio-economic development.

The EU regulation, which all relevant companies must adhere to, will require showing proof of deforestation-free production and detailed farmland information. Despite concerns, Kadir remains optimistic, emphasizing that palm oil produced from existing plantations before 2021 is deforestation-free and hoping for fair trade practices. He also noted that Malaysia's oil palm industry is heavily regulated and is taking steps to reduce deforestation, such as enacting policies to limit oil palm cultivation and establish the Malaysian Palm Oil Green Conservation Foundation.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

KUALA LUMPUR (Dec 13): The Malaysian Palm Oil Board (MPOB) said while the country’s palm oil and palm oil products are deforestation-free, higher administrative and production costs as a result of due diligence following the new European Union (EU) import ban may impact the industry, especially the smallholders. In a response to the EU’s agreement to ban the import of several products, which include palm oil, beef, soy, coffee, cocoa, and timber, MPOB director general Datuk Dr Ahmad Parveez Ghulam Kadir said the EU’s regulation only targets the cultivation of commodities from developing economies as the major challenge in protecting the global environment. “The implication for the oil palm industry is expected to be from the due diligence statement, which will add to the administrative burden and higher cost of production vis-à-vis domestically produced rapeseed oil and sunflower oil. “There are discrimination here as other crops, such as rapeseed and sunflower, are not targeted. ...

Source: Theedgemarkets