Malaysian Palm Oil Policy

With EUDR officially delayed, a critical question remains: Will the European Commission learn from past mistakes or risk deepening the divide? In a recent piece for Libre Mercado, Spanish author Diego Sánchez de la Cruz warns that while the delay may ease immediate concerns, the regulation’s eventual implementation could still prove harmful, particularly for smallholders in Malaysia and Indonesia. “The countries most affected by this proposed regulation have received the news with some relief, but it should not be forgotten that these trading partners (many of them developing economies) consider the regulation far from effectively addressing environmental problems and, in fact, threatens to unleash bureaucratic chaos that would make their trade with Europe very difficult.” Global discontent from stakeholders, including EuroCommerce, COPA COGECA, and Olaf Scholz, highlights why the EU must prioritize inclusive dialogue on EUDR. The newly nominated EU Commissioners—including Sweden’s Teresa Ribera Rodríguez—will be crucial in determining whether the EU chooses to collaborate with businesses and trading partners like Malaysian Palm Oil Council (MPOC) or continue down the same path that exacerbated these challenges in the first place. Read more: https://lnkd.in/ePBu3Ahj

The EU’s nomination of new Commissioners—including Teresa Ribera Rodriguez, Jessika Roswall, and Wopke Hoekstra—marks a pivotal moment for the future of the implementation of the EU Deforestation Regulation (EUDR). Following the Commission’s recent decision to delay the EUDR, these Commissioners will have additional time to oversee and prepare for the full rollout. In a previous media statement, MPOC CEO Belvinder Kaur Sron praised the EUDR delay, calling it a “victory for common sense,” and emphasized that “Malaysia is ready to supply EUDR-compliant, sustainable and traceable palm oil to our European customers.” Next year will be a defining moment for the palm oil industry. The 12-month delay offers the EU an opportunity to improve EUDR and address the concerns of businesses and stakeholders. This should include: - A genuine and wide-ranging exemption for smallholders to prevent their exclusion from supply chains - Fair and transparent benchmarking criteria so that proven sustainable commodities such as Malaysian palm oil will be identified as ‘low risk’ - Acceptance of the Malaysian Sustainable Palm Oil (MSPO) standard as a compliance tool for EUDR to ease market access for proven zero-deforestation palm oil Read more: https://lnkd.in/exRXJHnX

📢New statement from Malaysian Palm Oil Council (MPOC) CEO Belvinder Sron on the latest EUDR delay announcement from the EU Commission: “The EU Commission’s announcement that EUDR implementation will be delayed until 30th December 2025 is the right decision. This is a victory for common sense, and a welcome relief for all of those businesses who highlighted the need for a delay. “Malaysian palm oil exporters are able to comply with EUDR: this is not in doubt. Malaysia’s commitment to zero deforestation is written in law. The MSPO standard is the world’s leading mandatory palm oil certification scheme. Malaysia is ready to supply EUDR-compliant, sustainable and traceable palm oil to our European customers. “This delay is a sensible decision to ensure that supply chains around the world have the time to prepare the technical and bureaucratic processes demanded by EUDR.” https://lnkd.in/ev778rcE

EU confirms delay to Deforestation Regulation: https://lnkd.in/dywTvCTx

Malaysia has consistently urged the European Union authorities, and other stakeholders, to recognise that the EUDR discriminates against the developing world, that the implementation date of 30th December 2024 is unworkable, and that a delay is needed.   Today, Malaysian Palm Oil Council CEO Belvinder Sron called on the EU to “do the right thing, and listen to the ever-growing calls for a delay to the EUDR. A delay is now the only way to ensure small farmers are supported, to provide stability for businesses, EU Member States, and governments around the world, and to avoid a chaotic implementation of EUDR in January 2025.”   Read more: https://lnkd.in/e8qHwJau

Malaysia is at the forefront of innovation in the palm oil industry, integrating robotics to overcome labour challenges and enhance ethical labour practices. This technological shift aims not only to fill gaps caused by worker shortages but also to eliminate forced labour, while maintaining employment for existing plantation workers. The implementation of robots in palm oil farming holds promise for increased efficiency, safety, and sustainability in production. Learn more about this significant progress from Bloomberg: https://lnkd.in/eSwy9CWF

“Is palm oil healthy?” is an important question – EatingWell provides an answer based on facts, not scaremongering.   First fact: palm oil is NOT a seed oil. It is a fruit oil, like olive oil. As EatingWell describes, palm oil is balanced, much lower in saturated fat compared to butter or coconut oil. “These attributes make it ideal for the production of foods including cookies, cereals, margarines and chocolate.” For consumers in Europe, the U.S., and globally, “This means that palm oil can be safely consumed as part of a well-balanced diet”.   In the developing world, palm oil is used as a cooking oil (like Europeans use olive oil). It is a lifeline for millions of poor families. As EatingWell describes, palm oil is a rich source of Vitamin A and Vitamin E. In Africa and Asia, “palm oil is an important source [of vitamin A] and may consequently prevent blindness, strengthen the immune system and decrease the risk of pregnancy-related complication” says dietician Cordialis Msora-Kasago, MA, RDN, DipACLM. “Palm oil is a great source of vitamin E,” says Gregory Lafortune, MS, RDN, LD, a registered dietitian nutritionist. This Vitamin E “confers protective effects in most of the body, including the heart, brain, liver, kidneys, stomach and bones”.   This is responsible, fact-based reporting on palm oil and health.   #EUDR #Malaysia #EuropeanUnion #Health #PalmOilHealth #Fats #palmoilindustry #FatsandOils #Nutrition   https://lnkd.in/ethWm4ZA

Concerns are growing around the world about the implementation of the EU Deforestation Regulation.   Recent, US Republican Senator Josh Hawley of Missouri wrote to US Trade Representative Katherine Tai highlighting that EUDR will mean “countless farmers will be disqualified from the European market through no fault of their own.” Twenty-seven other US Senators also wrote to USTR Tai, echoing the concerns that “the EUDR traceability requirement will be nearly impossible” and the Regulation “presents significant compliance issues due to its stringency and ambiguity.”    In addition, other countries also are engaging. India’s Commerce Minister Piyush Goyal (मोदी का परिवार) openly criticizes the European Commission’s greenwashing of protectionist trade policies. This follows sentiments from Malaysia and others that the EU’s current approach is “biased” and harmful to developing world producers and exporters.    These efforts are part of a broader shift in approach by rising developing nations that exporting countries are no longer willing to indulge what @FT described “counterproductive regulatory burdens”. These concerns from media and global leaders echo those of Plantation and Commodities Minister Johari Abdul Ghani and Malaysian Palm Oil Council (MPOC) – that the EUDR implements unrealistic requirements.    The delay being requested by Malaysia – to allow small farmers time to comply – is reasonable and practical. Will the EU display similar reason and practicality, by accepting the need for delay?   #EUDR #Malaysia #EuropeanUnion #Sustainability #SmallHolders #palmoilindustry #MSPO   https://lnkd.in/gRc4wrnp

Excellent column from Alan Beattie expressing very eloquently the frustration of some developing nations over EU Deforestation Regulation (EUDR). It’s very important for EU leaders to understand this perspective: it is real. Principles and practicality matter. Alan Beattie writes that the EU’s “attempts to manage its trading partners’ processes” are seen as insensitive and overbearing. Many EU Embassies have built positive understanding of partner countries, but the EU’s regulations do not reflect this. The column highlights that “the deforestation regulation has aroused particular resentment”. While this is true – there is a solution. Delaying implementation would allow producer countries such as Malaysia time to make the changes needed to comply with EUDR.   In fact, 13 developing nations wrote together to the EU in 2023 to formally highlight the problems with EUDR and to ask for a delay. If not, millions of small farmers in Latin America, Africa and Asia face losing income and access to markets. The EU has yet to act on this request.   This is not about politics in Brussels; it is about social development in the Global South. Malaysia’s Plantation and Commodities Minister Johari Abdul Ghani highlighted this issue in an oped in the Parliament Magazine. He writes: “If the EU wishes to bring developing countries with them on the Net Zero journey, it shouldn’t deny small farmers the ability to put food on the table for their families and communities”.   It is not too late to act. A chorus of voices in both the rich world and the Global South are asking the EU to do the right thing – and give us more time.   #EUDR #Malaysia #EuropeanUnion #Sustainability #SmallHolders #palmoilindustry #MSPO   https://lnkd.in/gvv8iqE2

Writing in India’s Financial Xpress, the eminent American physician and health expert Dr. Jonathan Ellen writes that recent criticism of palm oil from Indian commentators is “as stubborn as it is unscientific” and “sadly continues to muddy the waters of debate”. The article is in response to Vaishali Dar who wrote about “the unseen dangers of palm oil”.  Dr Jonathan Ellen assesses the various arguments and concludes that the allegations are a classic example of “an old trope that remains pervasive despite being disproven by evidence”. He reminds Dar that “Palm oil is also not “high in saturated fats,” rather it is balanced at 50/50 saturated and unsaturated fats”. A balanced public discussion on palm oil is the best approach. Read Dr Ellen’s full article here: #EUDR #Malaysia #EuropeanUnion #Sustainability #SmallHolders #palmoilindustry #MSPO https://lnkd.in/eKd-m6pA