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KUALA LUMPUR (September 22): The palm oil industry, which has contributed around 6% to Malaysia’s Gross Domestic Product, can do much better, said economist and consultant in agriculture and rural development, Dr. Isabelle Tsakok.
He said the industry must address interrelated sustainability challenges, particularly those related to the environment, climate change and social issues.
“To do that, it will take leadership and I urge the Malaysian government, which has enormous muscle power, to get into this in a big way, like it did when it chose palm oil (to be one of the revenue generators for the economy) ”, he said during the virtual question and answer session of the International Palm Oil Sustainability Conference 2020 (IPOSC 2020).
Among the challenges he highlighted is the decision by the European Union (EU) to phase out palm oil in transport fuels starting in 2030, the reduction of biodiversity and the threat of extinction of rare species.
Tsakok, who was one of the panelists during the two-hour question and answer session, noted that the industry should find solutions to increase the production of fresh fruit bunches (RFF), despite climate change reducing RFF and other agricultural yields, and address the alleged violation of labor rights and land appropriation of indigenous communities.
The cultivation, he noted, has driven agricultural transformation, inclusive growth and poverty reduction in the country, and is the most efficient way to meet the growing global demand for vegetable oil, since it uses a tenth of the land of your rival crops. .
However, its very success makes it controversial, he said.
“Palm oil is new to me as I am from Mauritius and we grow coconut there… so it is fascinating for me to see how powerful palm oil is for Malaysia and how it has helped to eradicate poverty.
“However, as someone who is observing the industry from the outside, I also see that palm oil has ‘two faces’. On the one hand, there are many wonderful things that you are doing, and have done them, but on the other hand, there are also many ugly things, “he said.
He noted that notable issues include the empowerment of the B40 group in industry, i.e. small farmers, indigenous land issues, labor rights, and deforestation.
Tsakok, who has a Ph.D. in economics from Harvard University and a retiree from the World Bank, noted that despite the challenges, the industry can do better as palm oil is a versatile oil that has much to offer the world. .
Meanwhile, another panellist, IOI Corporation Bhd’s head of sustainability, Dr. Surina Ismail, said that working with the government is one of the best ways to manage the challenges facing the industry.
“Throughout the supply chain, everyone has to play their role in the upstream or downstream sector.
“We must help and encourage producers, especially small farmers, to produce sustainably and gain recognition from large local and foreign companies,” he said.
Meanwhile, commenting on Certified Sustainable Palm Oil (CSPO), Roundtable Sustainable Palm Oil’s director of strategic stakeholder relations Salahudin Yaacob said that certification is necessary for both large and small, allowing them to enter more markets.
“Currently, CSPO production is low. Government, consumers, and industry stakeholders must work together to increase awareness of CSPO.
“We need to enforce the requirement to make sustainable palm oil recognized and this can be achieved by producing only CSPO,” he said.
Two EU representatives, Frans Claassen and Paivi Makkonen, said there should be more constructive dialogues between palm oil producing countries and the EU government.
They also emphasized that having good governance to promote a healthy supply chain in the industry is crucial, as well as ensuring that human rights are not violated.
Closing the discussion, Sime Darby Plantation’s sustainability director Rashyid Redza Anwarudin said that there is still a lot of work to be done to improve the industry.
“We need to make sure that the work we do is equally inclusive. We must remember that it is an important industry in this part of the world. It has made an important contribution to the social economy and development of the region.
“Most importantly, it has touched people’s daily lives,” he said.
IPOSC 2020 is the biannual conference of the Malaysian Palm Oil Council highlighting sustainability challenges and opportunities in the Malaysian palm oil industry.
This year’s conference will be held on a virtual platform, comprising two modules, in response to the global COVID-19 pandemic.
Today’s Module 1 featured presentations from sustainability experts from the agriculture, research, and palm oil sectors sharing their views on global agricultural products’ efforts to achieve sustainability and carbon neutrality.
Module 2, on renewable energy, climate change and food security, will take place from October 12 to 20, 2020.
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