By Kisho Kumari Sucedaram<\/p>\n\n\n\n
KUALA LUMPUR, June 14 (NNN-Bernama) — The implementation of the European Union Deforestation-free Regulation (EUDR) will not affect\u00a0Malaysia\u2019s palm oil growth and revenue\u00a0as European Union imports are\u00a0insignificant compared to other countries.\u00a0<\/p>\n\n\n\n
Malaysian Palm Oil Board (MPOB) chairman Mohamad Helmy Othman Basha said Malaysia exported about 1.5 million tonnes to the EU from a total production of about 20 million tonnes last year. Therefore, the amount is small.<\/p>\n\n\n\n
\u201cWe know the consumption growth of palm oil is not coming from EU but it will be from India, China, Africa, Middle East and other places. Hence, if we look from the revenue perspective, even if we sell less to EU, we could still sell to other countries,\u201d he told Bernama during the 10th International Planters Conference.<\/p>\n\n\n\n
In 2022, the EU imported about six million tonnes of palm oil.<\/p>\n\n\n\n
Furthermore, Mohamad Helmy said that it is hard for new areas to be developed for oil palm plantations, which means potential palm oil growth is very limited while consumption will keep growing.<\/p>\n\n\n\n
Fixing the growing narrative <\/strong><\/p>\n\n\n\n While revenue will be affected by the EUDR, there are concerns about the narrative being created about various issues \u2013 the environment, labour and deforestation \u2013 in Malaysia\u2019s palm oil industry which have to be cleared.<\/p>\n\n\n\n \u201cWe want to counter this upfront because these issues will influence other consumer countries going forward, even India at some point in the future. So we want to put a stop to this. Otherwise, it will generate and spread a bad image about our palm oil industry,\u201d he explained. <\/p>\n\n\n\n For instance, he said big western multinational companies operating in Malaysia such as Nestle will still buy palm oil (to manufacture their products) for the domestic market, but not for export purposes, as guided by its corporate policies and procedures.<\/p>\n\n\n\n \u201cPublic opinion shapes the way policies are being formulated in their country and this is why we really need to intervene before it starts spreading. Otherwise, it will be too late.<\/p>\n\n\n\n \u201cOf course, we are not going to fix the problem and change perception overnight but if we do it now, hopefully next generation and even the current generation will learn (a different narrative) about our palm oil industry,\u201d he said. <\/p>\n\n\n\n Deputy Prime Minister Fadillah Yusof recently led a highly successful mission to meet key EU lawmakers to seek solutions regarding the bloc\u2019s unjust deforestation law, called EUDR, which could dampen the palm oil industry.<\/p>\n\n\n\n The EU mission, in collaboration with Indonesia under the Council of Palm Oil Producing Countries (CPOPC), was successful in getting assurances of more engagement with the EU before the EUDR, aimed at reducing global deforestation, is enforced.<\/p>\n\n\n\n Within 18 months after coming into force, the European Commission will announce which producer countries \u2013 including EU member states \u2013 are deemed low, medium, or high risk based on their rate of deforestation and forest degradation, and the existence, compliance with, and effective enforcement of laws protecting human rights, the rights of indigenous peoples, local communities, and other customary tenure rights holders, among other criteria.<\/p>\n\n\n\n Moreover, Malaysia had also pledged to maintain at least 50 per cent of forest cover during the Rio Earth Summit in 1992. Malaysia\u2019s forest cover is currently at 55.3 per cent.<\/p>\n\n\n\n Local palm oil quality competitive<\/strong><\/p>\n\n\n\n While the first collaboration between Malaysia and Indonesia under one CPOPC umbrella to fight against EU\u2019s narrative was successful, the local consumption in the neighbouring country is strong with domestic market obligation and B30 biodiesel mandate. <\/p>\n\n\n\n \u201cHowever, Malaysia does not have the same advantage like Indonesia,\u201d he said.<\/p>\n\n\n\n Mohamad Helmy said Malaysia has the competitive advantage of better quality production with well organised government and industry management. <\/p>\n\n\n\n \u201cWe also have credible data to be published to back up our production and stock data. To some extent, this has proven to be an advantage,\u201d he said.<\/p>\n\n\n\n He said the relationship between both countries has developed over the years with Malaysia having developed its plantation sector much earlier. <\/p>\n\n\n\n Protecting smallholders<\/strong><\/p>\n\n\n\n \u201cThe recent EU mission shows that we \u2013 being the two biggest producing countries \u2013 are countering the narrative and negative campaigns. At the same time, it would be better if we do it jointly,\u201d he said.<\/p>\n\n\n\n Malaysia and Indonesia are major contributors to the world\u2019s palm oil market with both countries accounting for 80 per cent of the market.<\/p>\n\n\n\n He said the common interest between both countries was to protect smallholders as the new EUDR would affect smallholders significantly compared to big companies. <\/p>\n\n\n\n \u201cThe message we are trying to convey is whatever they are doing over there is really hurting millions of smallholders here,\u201d he said. <\/p>\n\n\n\n Smallholders, despite accounting for between 35 per cent and 40 per cent of global production currently have only a small share of the EU market.<\/p>\n\n\n\n He added that Malaysia has about 250,000 registered smallholders with another 215,000 independent smallholders while Indonesia has millions of them. <\/p>\n\n\n\n — NNN-BERNAMA<\/p>\n","protected":false},"excerpt":{"rendered":" By Kisho Kumari Sucedaram KUALA LUMPUR, June 14 (NNN-Bernama) — The implementation of the European Union Deforestation-free Regulation (EUDR) will not affect\u00a0Malaysia\u2019s palm oil growth and revenue\u00a0as European Union imports are\u00a0insignificant compared to other countries.\u00a0 Malaysian Palm Oil Board (MPOB) chairman Mohamad Helmy Othman Basha said Malaysia exported about 1.5 million tonnes to the EU from a […]<\/p>\n","protected":false},"author":30,"featured_media":224988,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[215,288,300,318],"tags":[],"_links":{"self":[{"href":"http:\/\/namnewsnetwork.org\/index.php?rest_route=\/wp\/v2\/posts\/224958"}],"collection":[{"href":"http:\/\/namnewsnetwork.org\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/namnewsnetwork.org\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/namnewsnetwork.org\/index.php?rest_route=\/wp\/v2\/users\/30"}],"replies":[{"embeddable":true,"href":"http:\/\/namnewsnetwork.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=224958"}],"version-history":[{"count":1,"href":"http:\/\/namnewsnetwork.org\/index.php?rest_route=\/wp\/v2\/posts\/224958\/revisions"}],"predecessor-version":[{"id":224989,"href":"http:\/\/namnewsnetwork.org\/index.php?rest_route=\/wp\/v2\/posts\/224958\/revisions\/224989"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/namnewsnetwork.org\/index.php?rest_route=\/wp\/v2\/media\/224988"}],"wp:attachment":[{"href":"http:\/\/namnewsnetwork.org\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=224958"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/namnewsnetwork.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=224958"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/namnewsnetwork.org\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=224958"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}