Independent labels aim for Asian market

By 2020, Indonesia and Malaysia will produce 59% and 26% of the world’s palm oil, respectively.

The inauguration was brief. The ISPO renewal process has been opaque since 2017, encouraging many stakeholders to leave the process. In March 2020, a new Presidential Decree on ISPO was published, with additional articles on youth transparency and mandatory certification until 2025. Also, articles on human rights, identification and independent monitoring have disappeared in previous projects. Frustration for NGOs.

Joko Sarijita, head of the Indonesia Commodity Stability Project, told the China Dialogue: “

The UNDP 2020 report states that although less stringent than the RSPO, by mandatory national standards, “results have the best chance of delivering national coverage.” RSPO, as a private offering program, is met with stakeholder resistance through certification and is considered a reasonable price.

The biggest problem of “full national coverage” has been taken up by small entrepreneurial farmers, who control 40% of the area under oil palm cultivation in Malaysia and Indonesia. Their dividends are dynamic. Lack of knowledge and access to high quality agricultural inputs like fertilizers can result in 50% reduction in hectares compared to large commercial farms, as well as incomplete and invisible yields. Their answer to the yield difference is to plant more dates to clear the forest. The introduction of certification systems is an important step towards sustainability that will help small entrepreneurs improve their per capita productivity. Hectares of active land.

Low-level education and low incomes often hinder the supply of palm oil to smallholder farmers. Land ownership is another obstacle. Proper registration of land ownership is a prerequisite for RSPO, MSPO and ISPO certification – a requirement that is often not met by many small multinational operators.

China, the world’s second largest importer of palm oil, purchased 7.6 million tonnes of oil in 2019, or 13% of the world’s total oil. However, the Chinese government, businesses and the general public have not yet supported the idea of​​lasting stability of palm oil. Imported palm oil and certified products have few conditions for stability in the Chinese market.

However, China cannot escape the sustainability debate for a long time. As India prepares for ISPO and MSPO approvals, industries in Malaysia and Indonesia are turning to China.

Malaysia has hired a Chinese partner to prepare MSPO for entry into the Chinese market. In 2012, MPOB signed an agreement with the China Organic Food Development Center (CGFDC) to supply the well-known Malaysian palm oil to China, allowing CGFDC to incorporate its MSPO program into its green food awareness label.

When Chinese Foreign Minister Wang Yi visited Malaysia in October 2020, he recognized the importance of trade in commodities, especially l’Palm oil, in a joint statement with fellow Dato Serihisha Mudin Thun Hussein. The two sides agreed to strengthen cooperation to promote the sustainability of palm oil products blended with the MSPO environment and Chinese food labels.

Dr. Parvez mentioned China’s recognition by the MSPO, but there are still no strict requirements for palm oil imported into China. “I want Malaysian palm oil to spread to China… It wouldn’t come as a surprise if one day Chinese buyers demand environmentally friendly palm oil. It will be there when the time comes,” he said.

MPOBO builds relationship with Beijing 2022 Winter Olympics. “Recognizing MSPO will be another important step for us. like the Tokyo Olympics. “Dr Pervez.

GAPKI Indonesia has the same interest in exploring cooperation with China. Bandung Sahari of Gapi’s sustainability department told the China Dialogue that he hopes ISPOs will become part of well-known sustainability standards like RSPO as the Chinese market introduces sustainability requirements through certification.

Meanwhile, negotiations have begun to set sustainability standards for China’s own palm oil. Experts told the China Dialogue that the question of which foreign standards will be recognized if China sets its own internal standards will not be answered.

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