Issue 1 - American Palm Oil Council

Large-scale commercial agriculture is being carried out inmany temperate and tropical countries without beingsubjected to such allegations and accusations. I find itincomprehensible that the palm oil industry is beingscrutinised to a microscopic degree.It is my duty to flag this point on behalf of hundreds ofthousands of smallholders in Malaysia.They will find it almostimpossible to meet the standards required by the P&C. I amworried for them; their contribution to domestic output issignificant both politically and economically.I am now told that palm oil may be barred from enteringcertain countries unless there is compliance with strictconditions. Whatever has happened to the World TradeOrganisation and the noble precept of free trade to bridgethe gap between rich and poor nations?The Roundtable for Sustainable Palm Oil (RSPO), whichstarted as a business-to-business initiative, has evolved intoa multi-stakeholder platform from 2004. I am glad to note itsprogress towards the development of sustainable palm oil.The government will continue to encourage the industry torespond to emerging requirements of the market place andits stakeholders with regard to sustainability.I am also glad to note that, by and large, the industry hasresponded well, since many have participated actively in thepilot project on the implementation of the RSPO Principlesand Criteria (P&C). The industry is developing suitableguidelines for implementation of the P&C through theNational Interpretation Working Groups.Those aware of the history of the oil palm industry willknow that it had its beginnings with these farmers beingpersuaded to participate in it. My ministry has been lookingafter their welfare and will continue to do so.They must beprovided the skills and knowledge to comply with the P&C.I will need answers from the RSPO on this point.New instituteNotwithstanding the progress made, I must say that not allthe membership sectors in the RSPO are responding in thesame spirit as the producers, in particular the NGOs.Whileresponsible NGOs such as the WWF are working within theRSPO framework, their counterparts continue to protestagainst the industry and to demand a moratorium on oilpalm development.I would like to point out a fundamental fact which may attimes be clouded by various arguments – it is the need toprovide a balance between taking care of the planet and itsinhabitants on the one hand, and the need for economicsustainability among palm oil producers on the other hand.The cost of doing business under the ‘new order’ asenvisaged by the P&C must be taken into consideration atall times and I do not think you can escape from this reality.What is deemed to be necessary costs by some producersmay be too burdensome for others.GLOBAL OILS & FATS BUSINESS MAGAZINE • VOL.5 ISSUE 1, 200817