RSPO

Sabah & Sarawak news (update 10): Plantation company link to Miri murder of activist Bill Kayong. Sabah pledges RSPO, 3D forest mapping by Lidar, 90 meter tree, other use of Lidar

17 July 2016: Plantation company link to Miri murder of activist Bill Kayong

Two charged over murder of Miri PKR's Bill Kayong BY KANDAU SIDI - 15 JULY 2016 MIRI: A 29-year-old car repossesor was among two people charged at the magistrate's court here today over the murder of PKR Miri branch secretary and activist Bill Kayong @ Mohd Hasbie Abdullah, who was gunned down last month. Mohamad Fitri Pauzi was charged with murdering Kayong at a traffic light intersection near the E-Mart Supermarket, Jalan Miri-Kuala Baram, at 8.20am on June 21. Pub owner Lie Chang Loon, 37, and three others who are still at large, were charged with abetting Fitri with the murder. One of persons who are still at large has been named as Lee Chee Kiang. It was learnt that Lee, 45, is attached with a plantation company. Fitri was charged under Section 302 of the Penal Code for murder, which carries the mandatory death sentence upon conviction. Meanwhile, Lie was prosecuted under Section 109 of the same Act. Read More : http://www.nst.com.my/news/2016/07/158372/two-charged-over-murder-miri-pkrs-bill-kayong

Coupon system to overcome fertilizer distribution for smallholders in Sarawak: Uggah BY BERNAMA - 2 MAY 2016 -- BINTULU: The Malaysian Palm Oil Board (MPOB) will introduce a coupon system to overcome problems in the distribution of fertilizer to oil palm smallholders. Minister of Plantation Industries and Commodities Datuk Seri Douglas Uggah Embas said the decision was made following claims by smallholders that they were facing difficulties to receive fertilizer. http://www.nst.com.my/news/2016/05/143025/coupon-system-overcome-fertilizer-distribution-smallholders-sarawak-uggah

Kemena smallholders happy with Rundi’s efforts  May 3, 2016 --  Tuai Rumah Jimbai Saban, 65, was grateful that his longhouse’s request to expand the community’s oil palm farm had been approved. “Fifty-two residents of my longhouse will be involved in this programme. MPOB has approved RM936,000 to cultivate 104 hectares. “I am confident that Rundi if elected for a third term will do much more for the people. He is very sensitive to the people’s needs,” he said. For Rundi, close cooperation with the Plantation Industries and Commodities facilitated his efforts to help the farmers in the area. “We thank the ministry for helping the smallholders. This will provide a certain amount of satisfaction for them and I believe such aid would continue,” he said. Rundi also thanked the ministry for approving RM2 million to complete the gravel road connecting the oil palm estate with the main road in Kemena. The allocation was announced by Plantation Industries and Commodities Minister Datuk Amar Douglas Uggah Embas while launching the Commodity Smallholders Transformation Programme at the Sebauh community hall here, today.....http://www.theborneopost.com/2016/05/03/kemena-smallholders-happy-with-rundis-efforts/

13 June 2016: Sabah 3D forest mapping by Lidar, 90 meter tree, other use of Lidar finds Cambodia medieval cities hidden beneath the jungle

Lidar system spots ‘tallest tree’ in the tropics 09 Jun 2016 -- At almost 90m, a Yellow Meranti is the tallest jungle tree ever discovered in reforestation research project. An 89.5m (293 foot) tall tree, equivalent in height to a column of 65 people standing on top of each other, has been discovered in Malaysia by conservation scientists using a laser-based system to monitor the impact of human activity on the biodiversity of a pristine rainforest. The tree, a Yellow Meranti (familiar to Minecraft players, who can create entire jungles of the variety) was spotted by a aircraft-borne lidar system an area of forest known as “Sabah’s Lost World” in the Maliau Basin Conservation Area, one of Malaysia’s last few untouched wildernesses. Its height pips the previous record-holder, an 88.3m example, found in the Tawau Hills National Park. The giant tree was discovered during reconnaissance flights by conservation scientists from the UK’s University of Cambridge working with the Sabah Forestry Department to help prot ct the area’s biodiversity. It comes at a crucial time, as the Sabah government takes measures to protect and restore heavily logged areas in the region....http://optics.org/news/7/6/16

3D mapping to decide on land use April 6, 2016 -- Carried out by the Carnegie Airborne Observatory (CAO), a facility under the Department of Global Ecology, Carnegie Institution for Science in Stanford University, the high resolution and three dimensional mapping will provide a good understanding of the structure and quality of Sabah’s forests, carbon stocks and biodiversity patterns – and help with conservation and restoration decisions. CAO, which is the most scientifically advanced aircraft-based mapping and data analytics system globally in the civil sector today, will map forest and non-forest vegetation carbon stocks, 3-D vegetation structure, and canopy tree diversity across the state’s 7.4 million hectare land area. This mapping process will provide government decision makers, scientists and conservationists an understanding on how past environmental management decisions have impacted the land and biodiversity, and how current and future decisions can make their status better. The maps will also set a baseline against which land and biodiversity management can be assessed in the coming years. The CAO aircraft is scheduled to collect data until early May 2016 as part of a partnership between CAO and the Sabah government through the Sabah Forestry Department (SFD). The partnership was initiated and facilitated by Forever Sabah.... http://www.theborneopost.com/2016/04/06/3d-mapping-to-decide-on-land-use/#ixzz4BQVf2gFV

Revealed: Cambodia's vast medieval cities hidden beneath the jungle - Exclusive: Laser technology reveals cities concealed under the earth which would have made up the world’s largest empire in 12th century  11 June 2016 -- What is a lidar survey? An airborne laser scanner (ALS) is mounted to a helicopter skid pad. Flying with pre-determined guidelines, including altitude, flight path and airspeed, the ALS pulses the terrain with more than 16 laser beams per square metre during flights. The time the laser pulse takes to return to the sensor determines the elevation of each individual data point.  The data downloaded from the ALS is calibrated and creates a 3D model of the information captured during the flights. https://www.theguardian.com/world/2016/jun/11/lost-city-medieval-discovered-hidden-beneath-cambodian-jungle



13 December 2015: Sabah pledges RSPO and to test HCS

Sabah To Test High Carbon Stock For Sustainable Oil Palm December 11, 2015   KUALA LUMPUR, Dec 11 (Bernama) -- The Sabah Forestry Department has committed to test the High Carbon Stock plus (HCS+) methodology for sustainable oil palm development in six months following the release of the HCS+ study's findings.  "We are very keen to pursue the offer from the Sabah Forestry Department which indicated that this would be very helpful for them.  "This shows that the state is very committed towards sustainable palm oil and a sustainable economy," said Forum for the Future founder Director Jonathan Porritt.http://www.bernama.com.my/bernama/state_news/news.php?id=1198759&cat=sbe


Sabah's CSPO Pledge Will Improve Smallholders Yields: MPONGOC   KOTA KINABALU, Dec 1 (Bernama) -- Smallholders who lack knowledge and support for good agricultural practices or skills such as negotiating rates for their harvest stand to gain from the Sabah Government's move to fully produce Certified Sustainable Palm Oil (CSPO) within the next 10 years. The Malaysian Palm Oil NGO Coalition (MPONGOC) said the move will also help secure environmental benefits such as safe water supply and soil conservation, as all producers in Sabah will be both obliged and assisted to meet globally-accepted standards such as those advocated by Roundtable on Sustainable Palm Oil (RSPO).  "The commitment to help Sabah's smallholders achieve RSPO standards will future-proof their access to top-flight international markets," MPONGOC representative, Cynthia Ong, said in a statement Tuesday. http://www.bernama.com.my/bernama/state_news/news.php?id=1195489&cat=ess

Sabah’s move to produce sustainable palm oil hailed  November 12, 2015 Read more: http://www.theborneopost.com/2015/11/12/sabahs-move-to-produce-sustainable-palm-oil-hailed/#ixzz3u8F7AcRR

 


22 October 2015: Sarawak asks for more than "palm oil, palm oil, palm oil,"    PT Bank Mandiri - commodity-based provinces should find new sources of economic growth as the commodity boom is over


Sarawak has to industrialise: CM 22 October 2015 by Patricia Hului BPO Newsdesk; ...In an interview with Bloomberg TV Malaysia, ‘Spotlight on Sarawak: Playing Catch-Up’ broadcast on its website Oct 21, the chief minister addressed the need for the state to industrialise, diversify its agricultural sector and increase infrastructural development....On the need for the state to industrialise, the chief minister said that Sarawak was no longer satisfied with only producing raw materials as in the old days. “We want to process these products ourselves so that we can retain the added value.” About 40 per cent of Sarawak’s economy is reliant on commodities, but contribution from manufacturing, construction, services and other industries is on the increase. “I have decided no more timber licensing, no more plantations. For the time being, give ourselves a respite and then perhaps eventually we will depend on our industry.” .... On the state’s palm oil industry, Adenan is looking to diversify the agricultural sector in Sarawak. “Food production is very slow and now we insist on palm oil, palm oil, palm oil. It’s good, but why can’t we grow other crops for production, food crops and so on,” he said, foreseeing increased interest in this area coupled with Sarawak’s availability of land for food production. Read more: http://www.theborneopost.com/2015/10/22/sarawak-has-to-industrialise-cm/#ixzz3pHYAZ1CD
Analysis: The effect of commodity price changes on Sumatra and Kalimantan Mamay Sukaesih, Jakarta | Business | Wed, October 21 2015, 5:45 PM; .... Our analysis has revealed that commodity-based provinces should find new sources of economic growth in the future. The main reason is simply that the commodity boom is over, implying that they can’t rely on commodity-based development anymore. One of the alternatives is to promote resources-based industries such as manufacturing and adding the value of goods that have been produced in the regions. PT Bank Mandiri (Persero) Tbk. - See more at: http://www.thejakartapost.com/news/2015/10/21/analysis-the-effect-commodity-price-changes-sumatra-and-kalimantan.html#sthash.rdFSxar4.dpuf

 

20 October 2015: Smallholders to get stake in independent Beluru mill project, one of 5 independent mills planned for Sarawak, Sarawak rejects trade barriers

Sarawak rejects trade barriers  By OOI TEE CHING - 17 October 2015 @ 11:00 AM; Wilmar’s refinery in Bintulu, Sarawak, was the main buyer from 41 palm oil mills across the state, absorbing 1.7 million tonnes of CPO, or half of the state’s production. In sourcing CPO to feed its refinery, the Wilmar-Unilever pledge dictated to planters in Sarawak that starting January, it will stop buying oil from estates where there are allegations of land grabbing from natives. The pledge will also lead to a halt in the sourcing of palm oil from farmers who have planted their trees in areas of “high carbon stock” and peat swamp. In an interview at his longhouse in Silas Estate near Bintulu, village head Meikle Ding spoke about his people’s sentiment.  When asked if the native customary rights (NCR) landowners had seen any tangible benefits from the Wilmar-Unilever pledge, Meikle replied: “It looks protective of us natives, but in reality our genuine business partner is Ta Ann Plantation.” He said Ta Ann, as the 60 per cent shareholder in Silas Estate, had taken considerable risk in coming up with up-front capital to lay in infrastructure to plant oil palms.  From the start of planting, even before the trees have started to bear fruit, it had given incentive payments to landowners....“As rural folks, we are simple people, but we’re certainly not simple-minded. Many of our children are working as doctors, lawyers and high-ranking diplomats serving the government in overseas missions. When asked to comment on anti-palm oil campaigns run by green activists, Meikle explained that natives were landowners as well as shareholders in the business of oil palm planting... Meikle also questioned whether the Asia-Pacific Economic Cooperation (Apec) and Trans-Pacific Partnership (TPP) agreements would address discriminatory and oppressive business dictates from buyers like Wilmar and Unilever. His query has struck a poignant chord on global edible oils trade politics.... Earlier this week, Indonesia and Malaysia agreed to harmonise and combine palm oil certification standards. Indonesia’s Chief Natural Resources Minister Rizal Ramli told the Parliament that it was time for Indonesia and Malaysia to fight and regain sovereignty on their own turf.... http://www.nst.com.my/news/2015/10/sarawak-rejects-trade-barriers
Smallholders welcome independent Beluru mill project September 19, 2015, Saturday; “This would be the first in Sarawak where smallholders can also purchase shares and be stakeholders in a palm oil mill,” Entri said during a project progress briefing to about 1,000 smallholders and representatives yesterday.... The projected cost of the mill would be between RM40 million and RM50 million, which would involve RM5 million worth of shares for smallholders. Entri said smallholders can enjoy multiple benefits when the mill is operational. Registered members of farmers organisations would enjoy dividends through SFO’s involvement apart from direct shares, while smallholders can also tap into technical advice, farm maintenance and production items such as weedicides and fertilisers without worrying about being fleeced by mills or collection centres while selling their fresh fruit bunches (FFB).... A special investment scheme would be set up to assist smallholders interested in purchasing shares, including loans where payment instalments could be made through deductions by the mill from FFB sales. Meanwhile, MPOB Sarawak regional head Sulim Lumong said Beluru will be one of five independent mills planned by Minister of Plantation Industries and Commodities Datuk Amar Douglas Uggah Embas for the state... Read more: http://www.theborneopost.com/2015/09/19/smallholders-welcome-independent-beluru-mill-project/#ixzz3owZl0aXX

22 August 2015: Rimba Sarawak forestry study

Adenan hits out at ‘stupid’ forest policies BY DESMOND DAVIDSON Published: 20 August 2015 5:50 PM; Sarawak Chief Minister Tan Sri Adenan Satem today described the  decision by the previous administration to bar foreign researchers, ecologists, conservationists and naturalists from conducting studies on the state's forests, particularly its totally protected forests, as “stupid”.
Launching a new study called Research for Intensified Management of Bio-rich Areas of Sarawak (Rimba) and later witnessing the signing of the memorandum of understanding on it, Adenan, who became chief minister last year, said it was “stupid” not to seek foreign expertise “when we don't have the expertise”. Rimba Sarawak will be the first collaborative international study to gather what the Sarawak Forestry describes as “credible scientific information on the status and health of our totally protected forests so that the appropriate management prescriptions can be formulated for these and other bio-rich areas”.
- See more at:
http://www.themalaysianinsider.com/malaysia/article/adenan-hits-out-at-stupid-forest-policies#sthash.Zqe6mB2N.dpuf

20 July 2015: Wetlands International - About 82% of the Rajang Delta in Sarawak (East Malaysia) will be irreversibly flooded within 100 years and substantial areas are already experiencing drainage problems


Wetlands International Press Statement - Peatlands of South East Asia are heading towards a socio-economic disaster 6 Jul 2015; Agricultural production in vast regions of South East Asia will be lost in the coming decades as a result of flooding of extensive lowland landscapes due to unsustainable development and management of peat soils. About 82% of the Rajang Delta in Sarawak (East Malaysia) will be irreversibly flooded within 100 years and substantial areas are already experiencing drainage problems. This will increasingly impact local communities, the economy and biodiversity and will develop over time into disastrous proportions unless land-use on the region’s peatlands is radically changed. Therefore Wetlands International calls for conservation and sustainable management of peatlands in South East Asia. A study commissioned by Wetlands International and executed by Deltares suggests that extensive drainage of peatlands for oil palm cultivation in the Rajang river delta results in such massive land subsidence that this will lead to extensive and devastating flooding incidents in the coming decades..... http://www.sarawakreport.org/campaign/wetlands-international-press-statement-peatlands-of-south-east-asia-are-heading-towards-a-socio-economic-disaster/

23 June 2015: Ta Ann new NCR JV for 60% stake in 17,000 ha (60% plantable; Sibu and Kapit area) replaces 2012 agreements revoked for lack of land owners' interest; BLD questioned over "no deforestation, no peatland" policy; Palm oil a matter of national security for Malaysia - opinion


Bunge palm oil supplier plans to clear peatlands for plantations by Rhett A. Butler June 22, 2015  BLD Plantation Bhd, a Malaysian palm oil company, plans to clear some 14,000 hectares of peatlands in Sarawak, on the island of Borneo, potentially putting it in conflict with the deforestation-free sourcing policy established by American agribusiness giant Bunge, say campaigners who filed a grievance over the matter.  In a statement issued last week, Forest Heroes announced it has formally filed a complaint via Bunge's grievance system in anticipation of BLD Plantation's peatland clearance. The complaint urges Bunge to suspend sourcing from the company, which supplies the multinational with palm oil via the Kirana refinery in Bintulu, Sarawak. It also asks BLD to adopt a zero deforestation policy and restore an area of peatland equivalent to the 6,000 ha it has already cleared.... http://news.mongabay.com/2015/0622-bunge-forest-heroes-bld-sarawak.html#ixzz3dqUWCg1l Ta Ann and Sarawak state government in new oil palm JV projects Monday, 22 June 2015  By: M. HAFIDZ MAHPAR; KUALA LUMPUR: Ta Ann Holdings Bhd is making a second go at doing joint-venture (JV) oil palm development projects with Sarawak state-owned Land Custody and Development Authority (Pelita) after an aborted earlier attempt. Ta Ann had to cancel earlier planned projects with Pelita - a statutory body under the Sarawak Ministry of Rural and Land Development - to develop jointly three parcels of land in Mukah and Kota Samarahan totalling about 39,000ha. These agreements, signed on Sept 28, 2012, were revoked due to the land owners’ lack of interest. However, Ta Ann’s unit Ta Ann Plantation Sdn Bhd (TAP) signed two new agreements on Monday with the authority’s unit Pelita Holdings Sdn Bhd to implement oil palm development projects in partnership with the Sarawak state government and native customary rights (NCR) owners. In a statement to Bursa Malaysia, the company said it would have a 60% stake while Pelita H oldings as trustee of NCR owners would have 30% and Pelita itself 10%. (For the 2012 agreenment, the proposed equity interests had been 55%, 30% and 15% respectively.) This time the JV companies plan to develop the parcels of NCR land situated in Sibu, with aggregate gross area of 17,017ha (of which an estimated 10,210.2ha are plantable area) and NCR land situated in Kapit with aggregate gross area of 11,178ha (of which an estimated 6,706.8ha are plantable). http://www.thestar.com.my/Business/Business-News/2015/06/22/Ta-Ann-and-Sarawak-state-government-in-new-oil-palm-JV-projects/?style=biz

Background news:
  • Sarawak timber firms step up tree planting to ensure constant supply Monday, 8 June 2015  By: JACK WONG;KUCHING: Timber companies in Sarawak, hit by falling log production, are stepping up tree replanting efforts to ensure future supply. WTK Holdings Bhd is expanding its forest plantation area by 12% this year, as it targets to replant 1,000ha more with fast-growing commercial timber trees. “Effort is being made on research and development to increase the seedlings’ yields and reduce planting costs,” chairman Datuk Wong Kie Yik (pic) said. The group has planted 8,000ha and Wong said it was a long-term goal to replace timber from natural forest concessions with trees from the forest plantations for downstream products in line with the state’s sustainable forest management practice..... http://www.thestar.com.my/Business/Business-News/2015/06/08/Sarawak-timber/?style=biz
  • Chong blames ‘Big Six’ for deforestation Posted on May 29, 2015, Friday Chong who is also Bandar Kuching MP claimed concessions given to the ‘Big 6’ are: •Ta Ann Group of Companies:  433,003 Ha /1,069,935 acres •RH Group of Companies : 1,001,877 Ha / 2,475,604 acres; •Shin Yang Group of Companies: 500,904 Ha /1,237,716 acres; •Samling Group of Companies: 1,288,389 Ha / 3,183,565 acres; •KTS Group of Companies: 144,485 Ha / 357,017 acres  •WTK Group of Companies: 357,017 Ha / 882,176 acres.....http://www.theborneopost.com/2015/05/29/chong-blames-big-six-for-deforestation/#ixzz3dqShMjUW

Palm oil a matter of national security  By Dr Ahmad Ibrahim - 22 June 2015 @ 12:00 PM; MANY may not be fully aware that oil palm is a strategic crop for the region. Both Malaysia and Indonesia, which together control almost 90 per cent of the global supply of palm oil, depend to a significant extent on oil palm for their economic wellbeing.... Oil palm has, for years, been a lifeblood of the rural economy in both countries. In fact, it would not be wrong to suggest that any serious disruption to the palm oil market may even spell dire consequences for rural households in both countries. Many families are entirely dependent on the income from oil palm for their livelihoods..... Malaysia now has about 5.4 million hectares of oil palm. Indonesia has almost twice that. Production in Malaysia has been stagnating just under 20 million tonnes a year. It has been estimated that around 250,000 small farmers contribute towards the nation’s production. In fact, smallholders account for about 50 per cent of planted hectarage in the country. But the more important statistic is that close to 2.5 million people in the country make their living from the palm oil industry. The continued wellbeing of the industry is, therefore, important to them. It has been reported that some of the nation’s richest individuals owe much of their fortunes to activities linked to palm oil.... ....... In Malaysia, Sarawak is a good example of one such case. The plan by the state to expand oil palm cultivation was met with serious opposition by NGOs. Unsavoury tactics have been used to trigger negative market sentiments among palm oil buyers. The European Union (EU) market has been especially influenced. The EU has put up non-tariff barriers to palm oil export, using greenhouse gas emission as the criteria. This has been vehemently contested by the palm oil industry.... The industry has started questioning the sincerity of such groups offering sustainability schemes. Many among industry members have expressed concern about the changing criteria of their certification schemes. They keep moving the goal posts. It is as if the agenda is not at all about sustainability. Instead, it is about making it difficult for palm oil. Smallholders are especially worried. And smallholders are naturally the ones most affected if such actions lead to reduced demand for palm oil. The ultimate pain for smallholders is the risk of a decline in demand leading to big drop in palm oil prices. Which is what is happening now. Many small farmers are now suggesting that the negative campaigns by the NGOs may be tantamount to deliberate sabotage. And as a strategic crop for the nation, palm oil must now be viewed as a matter of national security for the country. The writer is a fellow of the Academy of Sciences Malaysia.....http://www.nst.com.my/node/89254



7 June 2015: Sabah to pledge 100% CSPO by 2025? Dolphin Int sees strong East Malaysia demand, CIMB- Plantations update- Minimal quake effect


23 June note: On Sabah CSPO plan - one industry expert reckons that this move was initiated by Sabah authorities.

Malaysian state eyes 100% certified palm oil by 2025  mongabay.com  May 30, 2015  Sabah, a state in Malaysian Borneo, is weighing a proposal to produce only palm oil certified under the Roundtable on Sustainable Palm Oil (RSPO), an eco-certification initiative, by 2025. The move, if approved, would represent the first time a sub-national or state entity has committed to 100% certified palm oil production.  Sabah currently produces 12 percent of the world's palm oil, making it one of biggest global players. Production comes from a wide range of actors, from smallholders to some of the biggest palm oil companies. That diversity however, makes a state-wide certification approach challenging, since smallholders typically cannot afford the cost of certification.   But some officials think that obstacle may be worth overcoming if it enables Sabah to differentiate its palm oil from other producers, especially given the rise in the number of companies that have adopted social and environmental safeguards for palm oil sourcing.  “Both global demand and downstream industries will increasingly pull the supply chain for Certified Sustainable Palm Oil and Sabah must act to be ahead of the curve,” said Sam Mannan, Director of the Sabah Forestry Department, which owns about 100,000 hectares of palm oil plantations in the state. "With time, large competitors will inevitably outpace Sabah’s total output of palm oil but with certification, Sabah can build itself as a niche producer of a branded good – i.e. certified palm oil, and compete on the basis of governance and not size.”  Read more: http://news.mongabay.com/2015/0529-sabah-jurisdictional-approach-palm-oil.html#ixzz3cQFyLOmz

Upcoming listing Dolphin International sees strong demand from East Malaysia by Ronnie Teo Posted on June 4, 2015, Thursday KUCHING: Dolphin International Bhd, which aims to list on the main market of Bursa Malaysia next Tuesday, anticipates strong demand from Sabah and Sarawak for its palm oil machinery. As a company involved in the design, development, fabrication and sale of products for the palm oil milling machineries sector, Dolphin International is indeed in a unique position to tap into the many demands of the plantations sector. Within Malaysia, Dolphin’s role mainly focuses on machineries and automation in palm oil milling. As such, plantation owners, as well as commercial palm oil millers are key customers for the group, it told The Borneo Post in an interview yesterday. Read more: http://www.theborneopost.com/2015/06/04/upcoming-listing-dolphin-international-sees-strong-demand-from-east-malaysia/#ixzz3cQ8XKtJe
CIMB- Plantations update- Minimal quake effect: A strong 6.0-magnitude earthquake rocked the state of Sabah, prompting concerns that palm oil output from Sabah, which account for 31% of Malaysia’s palm oil production, could be affected. Our checks with the planters reveal that their palm oil operations have either been unaffected or just minimally impacted by the event as most of their estates are located some distance away from where the earthquake struck. We maintain our Neutral rating.
News links 


26 April 2015: Uggah: Sellers of FFB must include names - FFB thefts in Sarawak was a matter of concern


Uggah: Sellers of FFB must include names; Posted on April 18, 2015, Saturday; KUCHING: Sellers of palm oil fresh fruit bunches (FFB) are now required to put down their names and particulars to be sent to Malaysian Palm Oil Board (MPOB) for monitoring and checking purposes.
This is a new strategy introduced with the aim to curb the never-ending thefts of fresh fruits bunch in the state, says Minister of Plantation Industries and Commodities Datuk Seri Douglas Uggah.
He said mills and collection centres were only initially required to record the quantity of the FFB sold to them but now they had to get the names of the sellers as well. “Failing to get their names means the collection centres are committing an offence and stern action will be taken against them,” he told a media conference after chairing a second meeting to discuss FFB issues here yesterday. Deputy Home Minister Dato Sri Dr Wan Junaidi Tuanku Jaafar and representatives from other relevant agencies were also present; Uggah lamented that the FFB thefts in Sarawak was a matter of concern because despite the operation code-named Ops Sawit Kenyalang mounted from July 1 to December last year there was still no end to the problem. Ops Sawit Kenyalang 2015 was launched on April 2.
He said that from January to March this year the authority had received 82 reports of FFB thefts throughout the state involving a total area of 18,192 hectares including Samarahan, Sibu, Mukah, Kapit and Miri. “To prevent the sales of FFB from suspicious sources MPOB has issued a directive which restricts mills from buying more than two tonnes of FFB per hectare,” he said. Uggah said through the operation conducted by MPOB and various other enforcement agencies including the police from July to December last year a total of 278 compounds and 41 show cause letters had been issued to several operators to explain why their licences should not be suspended......
Read more: http://www.theborneopost.com/2015/04/18/uggah-sellers-of-ffb-must-include-names/#ixzz3YNfDyJHM

24 April 2015: Salcra to build new palm oil mill in Merindun


Salcra to build new palm oil mill in Merindun Posted on April 24, 2015, Friday; SARAWAK Land Consolidation and Rehabilitation Authority (Salcra) has obtained approval from Malaysian Palm Oil Board (MPOB) to construct a new palm oil mill in Merindun in line with its development plan.
According to Assistant Minister of Land Development Datuk Abdul Wahab Aziz, the new mill located near the old mill that was partly destroyed by a fire last year, would have a processing capacity of 60 metric tonnes (MT) per hour and upgradeable to 120MT per hour. “Site preparations and other civil works for the new mill commenced in July last year and is expected to be operational by the end of 2016,” he said in response to Johnichal Rayong’s (BN-Engkilili) query on whether Salcra would build a new palm oil mill in Merindun. On a related matter, Abdul Wahab said Salcra would continue to purchase FFBs from smallholders who have signed long-term contracts to sell their FFBs to Lubok Antu Palm Oil Mill..... Read more: http://www.theborneopost.com/2015/04/24/salcra-to-build-new-palm-oil-mill-in-merindun/#ixzz3YBVmqXWr


18 April 2015: Drag plantations to Environment Court over riparian says CJ of Sabah and Sarawak

Drag plantations to court: CJ April 18, 2015; Kota Kinabalu: The best way to get plantation bosses and others to ensure they respect riparian areas is to sue them for growing oil palm or other crops illegally right to the river bank, thus affecting wildlife movement and river quality. "Encroachment of riparian reserves is subject to challenge in court especially if the evidence is good now that the Environment Court has been set up since January 2015.  "If only anybody such as NGOs take an action in court and say 'look we want this to be declared a wrong action, get a judicial review or declaration in court, it's there," said Chief Justice of Sabah and Sarawak, Tan Sri Richard Malanjum.
Malanjum said this when asked to clarify on Land Ordinance Sabah (Cap 68) Section 26 (1)(2) which specifies riparian reserves along all rivers , even small rivers must be kept.
He spoke at a joint press conference, Thursday, with State Culture, Tourism and Environment Minister Datuk Seri Masidi Manjun, in conjunction with the Workshop on Environment organised by the Judiciary-initated Sabah Working Group on Environment, at UMS.
http://www.dailyexpress.com.my/news.cfm?NewsID=99037


18 November 2014: RSPO RT12: Sabah considering 100 percent RSPO by 2025?

Moderator Cynthia Ong on the Reaching the Market discussion reports that Sabah stakeholders are discussing 100 percent CSPO by 2025. She says authorities, industry, civil society and small holders are discussing. She is championing this move for Sabah.
Cynthia Ong asked Wilmar if they would support such a Sabah move. Wilmar notes that there are many who are not RSPO members abd that various types certification may be used.
Darrell Webber (RSPO Secretary General) notes there is more talk of jurisdictional approach as it's hard to certify smallholders.
MR Chandran (RSPO Advisor) suggests getting downstream players getting uptake commitment. He notes the Sabah Chief Minister has recently endorsed the RSPO. If Sabah can pull this off it would be an example for the rest of the world.
Companies who have cleared after 2005 may need to comply with the RSPO's Compensation Liability. Darrell Webber notes that 280,000 hectares (globally) need to be compensated for. He says that it would be good if the government is involved as they could help with conservation area planning for the RSPO Compensation if Sabah were to go 100 percent RSPO certified.
MR Chandran picks up on question on cost or cost sharing. He reckons the downstream players need to be involved in this cost share. On cost Cynthia Ong reckons that Sabah government, industry and RSPO could help fund Sabah smallholder certification. She asks if others would help too.

Indonesia deforestation policy: Reference on Papua forests protection, GAR/PT Smart statement, Entire process for new palm oil permit issuance ends: Minister - Environment and Forestry Ministry - nationwide extension of current moratorium, Quantifying the drivers of South American deforestation

30 May 2016: Quantifying the drivers of South American deforestation


Quantifying the drivers of South American deforestation - New research uses spatially and temporally explicit data to better understand deforestation trends in South America. by SAMUEL MCGLENNON 27 May 2016 http://blog.cifor.org/41685/quantifying-the-drivers-of-south-american-deforestation?fnl=en


13 June 2016: Reference on Papua forests protection


Editor's note: In the wake of the Jokowi proposal (quickly implemented by Ministry Environment Foresty) to stop forest conversion for oil palm concessions, eyes will be on the protection of the forests in Papua. A key NGO in tha treigon is Awas MIFEE, https://awasmifee.potager.org/. 

26 May 2016: GAR/PT Smart statement on the new nationwide moratorium on forest conversion

Thanks to a reader for forwarding the GAR/PT Smart statement on this issue... "in the short term the moratorium would provide impetus to the nation's One Map project.... (needed) longer term discussion on how to meet the food oil needs of a growing global population" 



12 May 2016: Entire process for new palm oil permit issuance ends: Minister - Environment and Forestry Ministry - nationwide extension of current moratorium area removes Papua and other areas from conversion 


Entire process for new palm oil permit issuance ends: Minister thejakartapost.com | Jakarta  May 1 2016, “I have put a stop to the entire process for the issuance of new permits for palm oil expansion under my authority, from A to Z. This is a concrete proof that we are following up President Jokowi’s directive,” she told foresthints.news, as quoted by Greenomics Indonesia.... The environment and forestry minister has the authority to release convertible production forests located in state forest areas for development purposes outside the forestry sector, such as for palm oil plantations... Citing an example, the minister said millions of hectares of state forests in Papua and West Papua could be qualified as convertible production forest, in which they fell outside the existing moratorium map. Thus, the forests could be legally released for development purposes, including for palm oil, she added.... “We are applying the moratorium on new palm oil permits in those millions of hectares even though the area falls outside the existing moratorium map. I have already given the order to stop issuing new permits for palm oil in convertible production forests. The authority for this rests with me,” Siti said.... http://www.thejakartapost.com/news/2016/05/01/entire-process-for-new-palm-oil-permit-issuance-ends-minister.html

18 April 2016: Jokowi seeks moratorium on new oil palm plantations whilst Indonesia government seeks to disband zero-deforestation pledge of dominant firms accused of cartel behaviour


Jokowi Seeks Moratorium on New Indonesia Palm Plantations, Mines 2016-04-14  By Chris Brummitt (Bloomberg) -- Indonesia’s government is planning a moratorium on new concessions for palm oil plantations to protect the environment, its president said. Current permits are sufficient and palm yields could be doubled through planting techniques and seed selection, President Joko Widodo said... “Now prepare for a moratorium on oil palm plantations and mine areas,” Widodo, known as Jokowi, said to an audience including the environment minister, police chief and activists. “We have to be brave to do that, we have to be concrete, real,” he said, before releasing turtles and eagles while barefoot on a beach. A moratorium could curb industry expansion in Indonesia, the world’s largest exporter of palm oil, coal for power stations and tin. There is already a moratorium on new permits for developing natural forests until 2017, though legal enforcement is often weak.... 

Jokowi announces moratorium on new permits for oil palm plantations, mining activities.. http://www.straitstimes.com/asia/se-asia/jokowi-announces-moratorium-on-new-permits-for-oil-palm-plantations-mining-activities



Govt looks to disband zero-deforestation pledge - The Jakarta Post 12-Apr-2016 Hans Nicholas Jong, The Jakarta Post, Jakarta The government is campaigning against a "zero deforestation" pledge (IPOP) signed by leading palm oil producers in Indonesia. This stands in stark contrast to Indonesia's commitment to promoting sustainable agro-forestry practices.  The Agriculture Ministry said on Tuesday the government was looking for a legal basis to disband the pledge. The pledge was initially designed to promote sustainable practices in Indonesia, the world's largest producer and exporter of palm oil. "The point is that we oppose the IPOP. The Business Competition Supervisory Commission KPPU has issued a letter saying that there are indications of a cartel in the IPOP. We will coordinate with the KPPU first and that letter can be used as a basis for its disbandment," the ministry's plantations director general, Gamal Nasir, told The Jakarta Post.... http://www.thejakartapost.com/news/2016/04/13/govt-looks-disband-zero-deforestation-pledge.html

19 Feb 2016: IPOP in disfavour is a problem for RSPO 50% goal targeted at refineries (updated policy-maker and GAR statements)


Editor's note: It is reported that the Director General of Plantations Gamal Nasir at a press conference themed ‘Bermartabatlah Sawit Kita!’ (dignify our palm oil) in Jakarta, on Wednesday 17 Feb, discussed the implications of the deal among five companies (major plantations cum refiners) that prohibits them from buying fresh certain fruit bunches (FFB) from farmers and crude palm oil (crude palm oil / CPO) of oil palm plantations - those that do not meet the criteria of their IPOP grouping. Gamal said that this is to the detriment of the Indonesian palm independent smallholders, many of whom are planting on peat and marginal land (not favoured by IPOP which leans on RSPO and other voluntary international standard requirements; that many of its members pledge that they will seek to extend). Indonesia says that the hectarage of oil palm plantations managed by independent smallholders almost half of the total acreage of oil palm plantations in Indonesia, 10.5 million hectares.

This will make it hard for RSPO to implement its strategy of 50% usage of RSPO palm oil for Indonesia (and Malaysia) - which necessarily implies that the spotlight is on refineries must be asked to comply. Currently, the major refineries work to various options including certification RSPO, customised (non-certification) traceability by The Forest Trust and others.

The news that a parliamentary committee will look into issues related to IPOP is also circulating in the industry. Also at the 'Bermartabatlah Sawit Kita!’ press conference, Firman Soebagyo (Member of Commission IV of the House of Representatives), raised concerns about cartel and monopolistic behaviour. He also argued that it is the role of the Chamber of Commerce (Kadin is also part of IPOP) and companies to counter issues raised by foreigners via NGOs, not just to obey foreign demands.

However, Purnomo points out to Kontan that Golden Agri will always complied with government rules, denying affecting IPOP member farmers. Indeed, members of IPOP do not buy fruit from conservation and forest "If we buy oil from there, later called us with receiving illegal oil palm fruit," he said. Thus, it may not only IPOP that is asked to bow to apparent smallholder interests, but also ISPO standards?



Thanks to reader for the links in Indonesia media on the subject of Indonesia vs IPOP: 

Terlampir berita terkait konferensi pers hari ini yang telah di release oleh beberapa media online, media-media lain akan me-release esok hari;
http://m.kontan.co.id/news/kemtan-ancam-bubarkan-perusahaan-anggota-ipop
http://poskotanews.com/2016/02/17/perkebunan-kelapa-sawit-rakyat-terancam/
http://m.jitunews.com/read/31212/punya-ispo-perusahaan-sawit-tak-perlu-ikuti-aturan-asing
http://perkebunannews.com/2016/02/17/bubarkan-ipop-untuk-kesejahteraan-petani/


Terlampir berita konferensi pers terkait masalah IPOP di media online, belum termasuk berita di media koran dan tabloid.
http://ekbis.sindonews.com/read/1086096/34/kementan-nilai-perjanjian-ipop-bebani-petani-kelapa-sawit-1455708611
http://ekbis.sindonews.com/read/1086101/34/teken-perjanjian-ipop-5-perusahaan-besar-sawit-disebut-langgar-uu-1455710065
http://m.suarakarya.id/2016/02/17/gamal-nasir-bubarkan-ipop
http://www.infovesta.com/infovesta/news/readnews.jsp?id=a4394764-b670-446c-b39e-e9fbc9dfe744
http://m.kontan.co.id/news/anggota-ipop-kaget-ancaman-kemtan
http://m.republika.co.id/berita/ekonomi/makro/16/02/17/o2onsk383-indonesia-jangan-mau-didikte-asing-soal-sawit
http://m.republika.co.id/berita/ekonomi/makro/16/02/17/o2ovho383-perjanjian-ipop-menekan-petani-sawit-indonesia
http://m.cnnindonesia.com/ekonomi/20160217190743-85-111628/kementan-paksa-5-perusahaan-sawit-indonesia-keluar-dari-ipop/
http://www.kabarbisnis.com/m/read/2864807/intervensi-kebijakan-negara-kementan-usul-pembubaran-ipop

RSPO RT13: Reader feedback on HCS+ HCSA and RSPO convergence and more. RSPO Next "commensurate effort" and floor price efforts are no-go? Link for presentation downloads. Members terminated / suspended. EU’s Product Environmental Footprint (PEF) initiative.

RSPO Roundtable annual meeting was held in KL over three days, 17-19 November 2015 (well, there was also a reception on 16th evening).
 

24 Nov 2015: Reader feedback on HCS+ HCSA and RSPO convergence and more

Editor: Thank you for various reader feedback on several topics. One segment immediately below and incorporated into text further down.

Reader feedback on issue of HCS+ and convergence with HCSA and RSPO: By the way, HCS+ is proposing the Palm Oil Welfare Index (POWI). Is this required when growers are asked to do comprehensive SEIA /SIA / FPIC before any new development? Or is it the same data to be re-packaged under POWI? Some highly regarded new planting developments use the “simplified template for PalmGHG”. If growers feel the results from the simplified palmGHG is the answer to new development, then we can just forget about HCSA and HCS+?
 
Please also refer to other Reader feedback below in the relevant sections below:
  • A subtle shift with NGO support to push buying / take-up of certificates....
  • Lots of talk of smallholders.
  • Floor price?

23 Nov 2015: RSPO Next "commensurate effort" and floor price efforts are no-go? Link for presentation downloads. Members terminated / suspended. EU’s Product Environmental Footprint (PEF) initiative.

 
Editor: Have heard from RSPO observers that RSPO Next "commensurate effort" and floor price efforts are delayed and may end up no-go. Also note that EU’s Product Environmental Footprint (PEF) initiative: Fratini Vergano report
 
You can look at RSPO RT13 presentations here: http://rt13.rspo.org/c/rt13-presentations/
 
 
Other highlights from RSPO website:
 
 
 

Day 2 & 3: Market uptake problem, RSPO Next calls for "commensurate effort" but can quasi-matching get through legal compliance? Quality of audits. Floor price. Smallholders focus. Jurisdiction approach. Sec-Gen wrap up. A tame GA13? (updated 20 Nov morning to add what's new and data at top)


Below are abridged notes on selected talks and panel sessions at RSPO RT13. They are not comprehensive!

Editor's notes on what specialists say is new at RSPO RT13, includes:
  • A subtle shift with NGO support to push buying / take-up of certificates already in production and for RSPO Next to have take-up commitments. The acceptance of the idea of "commensurate effort" is novel. And something that CGM and Retailer sector would find new in the 13 years plus of RSPO. [Reader feedback: The first RSPO certificates were only available from year 2008 onwards, United Plantations was the 1st company in the world to receive the cert].
  • Call for comprehensive smallholder plan more or less acknowledges that trickle-down from corporate sector centric policies has been dissatisfactory. Will this find jurisdiction approach as sufficient? Audience was lackluster when asked on jurisdiction approach helping smallholders.
  • RSPO alignment-convergence with other (higher) voluntary pledges mooted and some details suggested. But do other NGOs really want to converge? Market share tussles have been quite apparent. If policy innovation effort is any indicator (but data indicators this year not good, see below) the question is: Is RSPO gaining back its mojo? This is helped by buyers and producers readjusting and realigning after the big changes triggered by the trader-processors sub-sector to pull to non-certification traceability.


Editor's notes for the data minded:
 
  • In LMC reports (http://www.lmc.co.uk/Oilseeds_Oils_and_Oleochemicals; including presentation at MPOB PIPOC on cost of certification compliance driving the push toward non-certification traceability), this year's RSPO market share of global palm oil seen by some specialists as stuck at about 20pct. It has been increasing at 2pct-age points per year in recent years. So the slowdown this year raises many questions. Editor: This data point might explain the innovative moves on jurisdiction approaches to attract new membership volume, including for smallholders.
  • RSPO panelist notes the need for a lot of buying in the last 6 weeks of the year. There are many CGM and Retailer buyer pledges set for end 2015!
  • GreenPalm experts point out the drop in PKO certificates price and volumes. They reckon that the push up of PKO certificates to $80 plus has diminished demand volume. Worth checking this out.



 

Day 2. Opening ceremony for RSPO RT13.

Zainal Abidin rendered two hit songs. Hijau - Zainal Abidin  https://www.youtube.com/watch?v=BnoYNt-f2UE

Biswirajan Sen of Unilever, RSPO head. Talked of Haze Crisis pointing to need for sustainable palm oil not avoiding palm oil. Focus on jurisdiction approach to simplify admin (ed: and cost?) and include smallholders and government. RSPO Next voluntary add (ed: help get back mind and market share?). Coalition of capable and willing with inclusiveness

Bakke of Sime Darby. Sustainable Palm Oil Manifesto spent RM12 million on HCS and socio-economic development studies. To varying degrees, there are commitments to sustainable development. RSPO has reached 20pct of global production and Sime Darby has reached 99pct. But only half is sold as certified product. He calls on buyers not to wait, but to buy. Calls on working on the rest of agriculture (palm oil as a small land use footprint). Step away from propaganda, and work openly and honestly. Small farmer are important. Developing countries lack the funds to subsidise. Developed countries don't have much natural forest left. We need equitable development. Sime Darby initiatives: a) A new platform - Open Palm - traces high proportion of FFB, CPO, PKO to mill and estate and b) To assist small farmers, look and act beyond boundaries for fire safe zone up to 5km.
 
Oil palm versus primary forest. University of York study for RSPO. Reporting oil palm at half of biodiversity and quarter of carbon versus primary forest. Fragments need to be over 10,000 ha to recover.

Quality of audits. Answering strong questions on credibility of RSPO audits. A panelist suggestion to break link the between company that hires the auditor by allocating the auditor at random. No other concrete answer. Resolution for GA later on this issue. RSPO says it will fix the situation.
Link: Dodgy auditors undermine palm oil group’s ‘sustainability’ claims 16 November, 2015 https://eia-international.org/dodgy-auditors-undermine-palm-oil-groups-sustainability-claims


RSPO Next. Some worries about its take up rate and cannibalise demand for regular CSPO but RSPO reps strongly assure audience this will not happen! Look also at "free and fair labour" and "commensurate effort."  

Jurisdiction approach.
  • Sabah says it has to be competitive and needs to attract investors including for POIC project. Why would buyers focus on Sabah product. If palm oil market collapses, Sabah can still sell if it goes branded. Sabah confirms that its goal for 100pct CSPO is entirely RSPO.
  • Seruyan in Central Kalimantan. Its Bupati/Regent worries that deforestation has not benefited locals peoples. Sees palm and other commodity certification has the only way to help smallholders. Fears for loss of market access. Not sure yet which brand to adopt.
  • South Sumatra. It's Governor reports 200,000 smallholders for oil palm. It will work with assistance from IDH in a program that covers palm oil and other commodities.
  • RSPO explains that the jurisdictional approach is to reduce transaction cost for smallholders. Save on HCV assessment, HCS and SEIA by doing all this at landscape level as shared cost with government and NGOs. This will also remove need for HCV set-asides and allow land swaps. With such scale, individual smallholder transaction cost can fall. Question was asked to audience if the jurisdictional approach will help smallholders. Response perhaps less than half certain?
 Including smallholders.
  • Lots of talk of smallholders. A panel leader asked if there is a need for "RSPO Light" for smallholders as there has been a lot of talk of smallholders but few of them. [Reader feedback: Instead of making the requirements easier for smallholders, it was tightened further. They are certified under Group Certification. The first draft review was rejected by stakeholders (mainly grower) and the RSPO WG came up with the 2nd draft - still not yet approved. The requirement for smallholders is not much easier or simpler compared to what a large company has to do. There has not been much voice or bargaining from the smallholders all this while, in spite of having a seat. I am sure strong representation can do this more justice].
  • Editor: past promotion of smallholders has centered on talk of increased yield including startling big claims e.g. 50pct yield increase.
  • This time a RM150,000 study done by UPM on Keresa and Sapi mills taking into consideration tree age and other key factors. Editor: But questions remain on key issues: i) on cost of certification - not asked, ii) no clear presentation of before-after time periods for the changed outcomes, iii) with "to be certified" status included, perhaps not an unsurprising to see some focus on perceptions instead of hard data (more of the latter better?), and iv) clarification on who paid for what - did palm oil mills pay for smallholder groupings and extension services or was it MPOB?
  • From question from the floor on funding of reports, ISEAL panelist noted their efforts to encourage studies without directly paying for it. Panelist also raised question of RSPO transparently looking at possible negative outcomes of its programmes. Editor: Indeed, on the side-lines an NGO complained to me that one presenter was too concise about sources of funding: "That study was actually mostly paid for by xxxxx! Why wasn't that mentioned?" But I do think that if you do need a specific study, you may need to fund it - but that does means that the study has to be more rigorous than ever!
Floor price? Ceres asked about floor price on certificates set at smallholder costing. MPOA notes that asking smallholder to make a "leap of faith" to achieve only a 20-50c premium is a problem! There needs to be buy in from smallholders i.e. there need to be solid financial benefits. Committee is being set up to look at the floor price question. Editor: Some very senior agriculture specialists worry that a floor price would become the traded price and would end up distorting the economics of certification. [Reader feedback: For many years the RSPO ex-president (Jan Kees Vis of Unilever) has made it clear that there should be no discussion on premiums for CSPO etc. This is apparently against competition rules. I thought premiums are based on willing buyer,willing seller basis?]
  

RSPO Sec-Gen's wrap-up comments. Includes:
  • "Beli yang baik" consumer campaign in Indonesia.
  • Singapore's "Axe the Haze" consumer campaign. He notes that buying RSPO products is one part of the solution, but that alone cannot save the haze problem.
  • Markets. CFNA participation about China market and looking to sustainable guidelines for China investments overseas. UK collaboration via Infit (fact check needed). Editor: Attendees point out that China and UK say they will commit to RSPO and other credible programmes. Link: RSPO statement on UK progress report News, 18 November 2015 http://www.rspo.org/news-and-events/news/rspo-statement-on-uk-progress-report
  • EU has goal for 100pct sustainable. Latest national alliance (to drive uptake) is for Italy.
  • Remediation and HCV Compensation Procedure policy has been endorsed by the Executive Board. This was 4 years in the making. (Editor: Specialists note that NGOs were surprised by relatively low level of compensation funds generated by the RSPO companies. but this policy is regarded as being a limiting factor in new grower membership sign-ups).
  • Those not submitting ACOP reports will be taken to task. 15 members have been terminated and 20 suspended with due process. Action taken last year too.
  • RSPO members need to band together to mitigate the haze. RSPO will convene the best on this. Certified areas are safe haven from rampant fires. How to help outside concessions? Concession map disclosure is important (Editor: legal position is that information may be voluntarily released by the company in Indonesia and many countries but Malaysia map release legality not checked yet?). Look and act beyond boundaries. In 6 months, to come out with something concrete on this.
 
RSPO GA13. Includes financial report. RSPO update on its smallholder fund - noting slow disbursement trend. Proposal from Oxfam, something long needed - a comprehensive smallholder focus (voted for strongly at 186). Code of conduct resolutions to strengthen action on members not promoting palm oil. Committee set up to look at floor price. Editor: Broadly, no major contentious resolutions as some in audience says RSPO issues are in maturity (and specialists also say some contentious issues were taken off!).

Post GA ruminations. Editor: RSPO Next expected to generate some legal compliance worries resulting in time out for possible reconsideration of committed ratios / volumes matching approach.

  
........................
 

Editor's notes for Day 1.

 
Editor's notes and items noted by industry: a) "Free and fair labour" concept which includes living wage and industry note on problems of casual labour, b) apparent dial-back on RSPO HCV Compensation which has been challenging RSPO membership growth - specialists note simplifications of the matrix into two columns (instead of three which previously differentiated members with certified units and members without) and provision for certificates even after a tough Compensation status (not entirely surprised given the halt in production capacity market share growth at 19-20% this year and uncertainty driven by HCV Compensation?), c) Convergence talked of for HCS methodologies of RSPO GHG Calculator, HCS+ of Sustainable Palm Oil Manifesto, and Greenpeace's HCS Approach (which does notes it is different in protecting young regrowth trees), d) Marketing efforts in China and India - RSPO promoters continue to ask for tariff differential to favour CSPO in India, e) Side-lines chatter about the relative silence on the Haze crisis, f) intriguing to see how mills market themselves for traceable-to-mill GreenPalm certificates, g) oleochemicals wondering about traceable oleo amidst frank views by L'Oreal that its buyers only really care about safety and animal testing issues, h) Lots of talk of including smallholders and government, both of which lacked clear focus for quite a while but now to receive more attention and i) the related shift to jurisdictional marketing (sub national units eg. South Sumatra with IDH and Sabah with RSPO?).
 
 
I am attending RSPO RT13. First talk attended on social and labour issues. Prevalence of casual plantation workers, lack of independent unions, need for living wage, problem of forced labour and female workers issues discussed.
 
HCS+ study sets 75tC/ha hard threshold within carbon neutral approach and seeks more benefits to smallholders and fairer model. Looking to converge with Greenpeace's HCS Approach.
 
 
 
Greenpeace HCS Approach for landuse planning. Reports Asian Agri and BASF to join. Not just palm oil but also for pulp and paper, rubber and soya. Geographic expansion to Africa and Lat Am.
 
At RSPO RT13 talk on FFB supply chain issues. Talk by WWF Indonesia.
 
Traceable Greenpalm certificates coming January 2016!

 
On attendance, organizers report 800 plus. Still strong despite switch from Bangkok venue plan. Expert observers reckon on 1/3 new faces including lots of apparent non Asia origin young executives and many NGOs new to palm oil scene.

Universiti Malaya roundtable. Fire-haze-smoke a new dimension to sustainability - is Sabah the first jurisdictional mover?

Editor's note: I attended a useful roundtable session hosted by Universiti Malaya yesterday. Thanks to Dr Helena Varkkey as convenor and the various institutes at UM who organized this.

The concern of "haze free"* appeared among KL discussants. Sustainability certification promoters note that large companies have made good pledges not to source from those with peat development. There was some questions about the limited reach of certification, and suggestions to look at better disclosure from palm oil refineries in the supply chain. The issue of smallholder incomes in the peat haze zones was also discussed, alongside frank view on what Malaysia and Asean might or might not be able to do. Economic solutions were mooted. Also, black-listing or boycotts that damage peat zone smallholder incomes (already they cannot afford more costly no-fire methods) was a concern. El Nino is considered not to be a controlling factor in the fire-haze-smoke situation anymore (it being an annual affair now). The profit motivation to develop on peat was discussed in much detail - peat zones being relatively uninhabited zones and not having native land rights claimants are prime zones for large-scale development as the land frontier closes. The need to re-wet these zones and proposals to seek alternative crops (it was highlighted that palm oil is one of the few crops that can thrive in the acidic wet conditions) for these regions was called on. Sabah's 10 year time frame to go wholly sustainable on palm oil was also noted. For Indonesia, the question of power and the decentralization of power between province and Jakarta was noted as a challenge to regulatory implementation.

* "Haze free" is also prominent with Singapore-based activists and Singapore media

Editor's notes on sustainability implications:
  • From a sustainability viewpoint, we should expect that different regions will consider differentiating themselves on the fire-haze-smoke criterion (you only need to look at the online maps offered by the likes of WRI - Global Forest Watch and ASMC to see the geographic concentration of the problem). In this regard, the Sabah move (see newslink below) could be the first of other such jurisdictional programmes. Naturally, this may challenge the idea of national and multi-national combinations to market palm oil (and even the corporate group as the basis of 100% certification, already challenged by the traceability alternatives in the processing value-chain) - but is a prime example of market forces coming into play.
  • Fire-haze-smoke (territorial basis) could be a new dimension to  sustainability that currently doesn't exist. The current pledges by refineries and PK crushers for "no peat" sourcing (basis is companies not developing on peat) is uncertain since corporate disaggregation can obfuscate the very good aim of this policy (the issue of ownership-control is far from transparent). Also, third-party sourcing of oil palm FFB remains a challenging one for certifiers and sustainability at large.
  • A jurisdictional - territorial basis is more transparent and more decisive - especially when mapped against hot-spot (haze-smoke) generating peat areas. It is an apparently logical conclusion, that palm oil mill district location will emerge as an element in decision-making. Sabah is decisively kick-starting this process.
  • Peat experts (at the UM roundtable) noted that palm oil zones north of the equator (looking good so far on the fire-haze-smoke dimension versus their south-of-the-equator counterparts) should not be complacent. So far (2H2015), they have had good rainfall (indeed, I've heard some tell of "perfect rainfall conditions"), and they need to be ready to tackle fire risks in their upcoming 2Q2016 dry season. Technical NGOs have provided the industry and buyers with rather high transparency via remote sensing data overlaid on concession maps. While these need to be properly gound-truthed, the work onus falls on the supply-chains players in the fire-haze-smoke districts.


Newslink:

Sabah to get CPO certified as sustainable palm oil November 5, 2015; The State Government of Sabah has decided to launch a 10-year jurisdictional program to have all crude palm oil (CPO) produced from Sabah to be certified as sustainable palm oil or CSPO.... This was decided at a cabinet meeting on October 21, this year, after taking account of all factors and oil palm being a crucial crop for Sabah’s wellbeing, Sabah Forestry Department director Datuk Sam Mannan disclosed in a statement yesterday... He said a committee would be established to implement the programme, to be headed by the Secretary of Natural Resources, with the Forestry Department providing interim secretarial support. “RSPO and Forever Sabah, an NGO, will provide technical advice, and relevant parties including NGOs, government departments, scientific organisations, etc, shall be co-opted into the committee. “It is anticipated that funding to implement the program on a step by step strategy, will come from many sources, including the Roundtable on Sustainable Palm Oil (RSPO), corporate donors, the oil palm sector itself, etc. The Forestry Department shall support the endeavour in kind,” said Mannan.
Read more: http://www.theborneopost.com/2015/11/05/sabah-to-get-cpo-certified-as-sustainable-palm-oil/#ixzz3qffHcZnx

Market access and voluntary standards news: Indonesia Coordinating Economic Minister worries voluntary corporate pledges jeapordise small farmer prospects; RSPO Next and RSPO NPP public consultations

Why care about new policies at voluntary standards? Voluntary standards have become de facto international trade policies that are increasingly affecting market access. The accession of palm oil's giant companies and its heavily concentrated processor-trader segment are driving market change. Is your company at the forefront of adoption and involved in this policy making? Are you a close follower? Will lagging take-up affect who you can sell to or buy from in the future? Buyers - do you need to switch or lock in suppliers? Growers - do you worry if you may face price discounting issues in the future? The "complexification" of sustainability is widely expected to prop up any premiums and market powers. Keep an eye on this!

30 August 2015: Indonesia Coordinating Economic Minister worries voluntary corporate pledges jeapordise small farmer prospects

Govt opposes zero-deforestation pledge by palm oil firms Hans Nicholas Jong, The Jakarta Post, Jakarta | Headlines | Sat, August 29 2015, 6:21 PM; In stark contrast to Indonesia’s commitment to reduce rampant deforestation, the government has surprisingly become a vocal opponent of a “zero deforestation” pledge signed by the four biggest palm oil companies in Indonesia.The Office of the Coordinating Economic Minister said on Friday that the pledge would jeopardize the country’s palm oil industry, currently the biggest in the world, as it puts restrictions on small farmers.“Oil palm plantations are the livelihoods of many of our people. The most effective driver of economic growth is through oil palm plantations,” the office's deputy for food and agriculture coordination Musdhalifah Machmud said on Friday......  http://www.thejakartapost.com/news/2015/08/29/govt-opposes-zero-deforestation-pledge-palm-oil-firms.html#sthash.BdBqwUSO.dpuf

19 August 2015: Public consultations on RSPO Next and RSPO New Planting Procedure

Editor's note: Thanks to reader TG for alerting on two new public consultations at the RSPO. There is the voluntary add-on addendum -  seen by experts as a necessary catch up with the "no peat, no deforestation, no exploitation" shift seen since December 2013 led by Wilmar and other plantation giants. It's also expected by key global buyers, who tell us that the (current) "RSPO is not good enough."  RSPO NPP is its de facto HCS policy. Look forward to reader feedback on these.

Announcement: Public Consultation on RSPO NEXT - by 6 October 2015
Public Consultation on RSPO NEXT, a voluntary add on program to the RSPO P&C Certification.
RSPO NEXT was developed by a Working Group of a cross section of Board of Governors members comprised of Growers, Processors & Traders, Retailers, Social and Environmental NGO’s.  The group developed guidance on the themes of No Deforestation, No Fire, No Planting on Peat, Reduction of GHGs, Respect for Human Rights and Transparency.
http://rspo.us4.list-manage.com/track/click?u=bc792a0de8352889b1a15eb0d&id=476c13563b&e=4683bf52c5

ANNOUNCEMENT: UPDATE FOR NEW PLANTING PROCEDURE (NPP) PUBLIC CONSULTATION (3RD AUGUST - 2ND OCTOBER 2015)http://www.rspo.org/news-and-events/announcements/update-for-new-planting-procedure-npp-public-consultation-3rd-august-2nd-october-2015


Also relevant: HCS+ Science Study proposes strong carbon threshold? Update 2b - On the peat / organic soil question
/khorreports-palmoil/2015/07/hcs-science-study-proposes-strong.html