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Section 2: Opportunities for Palm Oil in Asian Market:
Opportunities for Certified Sustainable Malaysian Palm Oil in Asian Markets
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Countries with the largest and fastest growing producing and consuming of palm oil are situated in Asia. India, China, and Indonesia account for 40% of all pathways to promote sustainable trade between key trading nations. Of this, 85-90 % comes from Malaysia and Indonesia, where worldwide demand for palm oil has lifted incomes, especially in rural areas, but at the cost of tremendous environmental devastation such deforestation and often labour and human rights abuses as most globally debated sustainable management issues. However, at the same time, it views as a poverty-reduction scheme by the producing nations and as a growth engine for developing economies by the international finance organisations. The commodity then later witnessed an increase in the adoption of sustainability standards includes voluntary standards such as Roundtable on Sustainable Palm Oil (RSPO) and International Sustainability and Carbon Certification (ISCC) and national standards namely Malaysian Sustainable Palm Oil (MSPO) and Indonesian Sustainable Palm Oil (ISPO). Latest initiative done by India in development of Indian Palm Oil Sustainability (IPOS) supporting the conviction that national standards are key instruments for sustainable palm oil production.
For MSPO, efforts have been put in place to developed, educate, implement, and finally mandatory for all the plantations including smallholders to be certified with MSPO by stages. It later evolved with the launched of MSPO Trace in 2019 where it meets the demand of traceability and transparency in sustainability management. MSPO-Trace is accessible to the palm oil product end-consumer to trace the origin of the palm oil. Besides that, there are also collaboration with importing countries such as China Green Food, adoption in Olympics 2020 for sustainable sourcing policy, and ILO, US ILAB for addressing labour issue in the oil palm plantations. With the increase of commitments by the producing and importing countries and companies towards sustainable sourcing, MSPO will create a competitive edge of certified sustainable palm oil.
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Section 2: Opportunities for Palm Oil in Asian Market |
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Archives |
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MITIGATING THE NEXT WAVE OF MARKET UNCERTAINTIES Nov 14, '22 ~ Nov 18, '22 |
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ASSESSING 2022: MANAGING OPPORTUNITIES AND RISKS Mar 28, '22 ~ Apr 01, '22 |
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Section 2: Opportunities for Palm Oil in Asian Market Oct 18, '21 ~ Oct 24, '21 |
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Section 1: Oils & Fats Supply, Demand and Outlook Oct 18, '21 ~ Oct 24, '21 |
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Section 1: Price Direction Apr 05, '21 ~ Apr 11, '21 |
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Section 2 : Special Focus on the US Apr 05, '21 ~ Apr 11, '21 |
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POINTERS ON THE PRICE TRENDS Jun 22, '20 ~ Jun 28, '20 |
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Section 1 : CPO Price Trend Feb 24, '20 ~ Mar 01, '20 |
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Section 2: Global Palm Oil Market Opportunities Feb 24, '20 ~ Mar 01, '20 |
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Section 2: Special Focus Aug 19, '19 ~ Aug 25, '19 |
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Section 1 : CPO Price Trend Aug 19, '19 ~ Aug 25, '19 |
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Special Focus - India Feb 25, '19 ~ Feb 24, '19 |
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Section 1: CPO Price Trend Feb 18, '19 ~ Feb 24, '19 |
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Section 2: Global Palm Oil Market Focus Aug 06, '18 ~ Aug 12, '18 |
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Section 1: CPO Price Trend Aug 06, '18 ~ Aug 12, '18 |
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Section 2 : Global Palm Oil Market Focus Jan 29, '18 ~ Feb 04, '18 |
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Section 1: CPO Price Trend Jan 29, '18 ~ Feb 04, '18 |
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Section 2: Regional Focus : CIS Countries Aug 21, '17 ~ Aug 27, '17 |
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Section 1: Palm Oil Price Fundamentals Aug 21, '17 ~ Aug 27, '17 |
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Section 2: Market Challenges and Opportunities Feb 20, '17 ~ Feb 26, '17 |
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Section 1: Price Directions Feb 20, '17 ~ Feb 26, '17 |
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Section 1 : Palm Oil Price Fundamentals Aug 22, '16 ~ Aug 28, '16 |
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Section 2 : Trade Issues and Market Prospects Aug 22, '16 ~ Aug 28, '16 |
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2016 Market Direction - Twists and Turns of Palm Oil Prices Feb 22, '16 ~ Feb 29, '16 |
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Second Half 2015 - Anticipating Market Price Direction Aug 17, '15 ~ Aug 23, '15 |
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Special Focus: Indian Sub-Continent Aug 17, '15 ~ Aug 23, '15 |
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Opportunities, Challenges And Trend In 2015 CPO Price Feb 23, '15 ~ Mar 01, '15 |
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2nd Half 2014: Market Challenges, Predictions And Directions Aug 25, '14 ~ Aug 31, '14 |
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Anticipating 2014 Palm Oil Price Direction Feb 17, '14 ~ Feb 24, '14 |
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Prospects For Second Half Of 2013 - Managing Price Fluctuations Jul 22, '13 ~ Jul 29, '13 |
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Mapping The Palm Oil Price - 2013 Market Perspective Feb 18, '13 ~ Feb 27, '13 |
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Palm Oil : Challenges, Opportunities And Latest Market Directions Aug 06, '12 ~ Aug 17, '12 |
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2012 Price Direction, Issues & Challenges Feb 13, '12 ~ Feb 20, '12 |
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Challenges, Opportunities And Latest Price Trend Aug 08, '11 ~ Aug 16, '11 |
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Challenges, Opportunities And Price Direction Feb 07, '11 ~ Feb 17, '11 |
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2010 Year End Prospects - What Lies Ahead? Aug 02, '10 ~ Aug 08, '10 |
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Dear Mr Leow, Thank you for your question and interest in the MSPO certification scheme. We apologise for the delay in responding to your question. MPOCC is not involved with any Indian agencies in the development of the Indian Palm Oil Sustainability Framework but we do note the efforts that were made by the Indian industry associations, NGOs and local stakeholders. This is indeed positive progress for India towards achieving the UN SDGs. MPOCC welcomes any partnership with Indian stakeholders, if required, as one of many ways to support the palm oil sustainability development in the country. For more information, you may reach us at hellomspo@mpocc.org.my Thank you and have a good day.
2 years ago
Dear En Sudarman, Thank you for your question and interest in the MSPO certification scheme. Please find the answers below: The existence of MSPO is not to replace any existing certification schemes. The MSPO is the Malaysian government's commitment to ensure that the whole palm oil industry in Malaysia adopts sustainable practices and offers fair market access to everyone involved in the industry, especially the smallholders and not just big plantation companies. Previously, our efforts have been focused on getting a significant number of certified entities. Now that it has reached around 90%, the focus is shifted to get market acceptance and we have already started through synergistic efforts between government agencies i.e. getting accepted in the Tokyo Games as a sustainable source for palm oil. We are leveraging on the strong relations between the governments to promote acceptance. We do direct engagements with companies from around the world that are interested in starting their sustainability journey and assist them in getting the MSPO Supply Chain Certificate to complete the supply chain. MSPO is new and like any new product the cycle starts with 'reach' and that is what we are trying to do. We are currently trying to engage as many stakeholders to create the widest reach possible and to create awareness on the MSPO as a potential scheme of certified sustainable palm oil. MPOCC realises the importance of market acceptance and all our efforts are now geared towards it. For more information, you may reach us at hellomspo@mpocc.org.my Thank you and have a good day.
2 years ago
Dear Mr Teh, Thank you for your question and interest in the MSPO certification scheme. Please find the answers below: MSPO and ISPO are national initiatives to show the government's commitment to sustainable palm oil production and that is the only similarity between the two. In terms of implementation, it is a bit different as we have different legislations between the two countries. We also have different geographic conditions which makes monitoring and on-the-ground implementation cannot be the same. There are other factors but in short, both certifications cannot be unified as compared to voluntary schemes as it needs to suit the local legal framework, respective national agenda and other varying factors between the two countries. However, through the Council of Palm Oil Producing Countries (CPOPC) the 2 countries have been actively collaborating on many issues and are currently in talks of producing a common framework for sustainable palm oil as a guideline. For more information, you may reach us at hellomspo@mpocc.org.my Thank you and have a good day.
2 years ago
Dear Mr Wong, Thank you for your question and interest in the MSPO certification scheme. Please find the answers below: The real problem is protectionism policy by EU rather than the sustainability of the palm oil industry. Whatever shortcoming by the industry can always be improved and we are in the journey towards making the industry better. What we can do is to raise our bar of performance and continuously making effort to achieve sustainable palm oil production. We should not do it just for market acceptance but to show the country’s and the industry’s commitment towards sustainable development and climate action. For more information, you may reach us at hellomspo@mpocc.org.my Thank you and have a good day.
2 years ago
Dear Mr Law, Thank you for your question and interest in the MSPO certification scheme. Please find the answers below: Q3: It is mainly due to tax-related matters rather than MSPO’s achievement. Elaborating on your observation, it is true that price will also be the key to any commodity trade and as I have addressed in my presentation, business as usual is still a problem where companies in Asia have yet to adopt sustainability in their business practices. These countries that were shown in the presentation have the potential from the governments’ willingness to commit to sustainable development goals which will reflect in policies that could favour MSPO. Q4: Licensing will be suspended and terminated if the companies are not in compliance in accordance with MSPO. This will result in plantations not able to sell their fruits when they don’t have licenses. For more information, you may reach us at hellomspo@mpocc.org.my Thank you and have a good day.
2 years ago
Dear Mr Law, Thank you for your question and interest in the MSPO certification scheme. Please find the answers below: Q1: The 11% are mainly independent smallholders and concerted efforts between government agencies are made to ensure that they will be 100% certified. The major challenge is to identify the smallholders who have yet to get certified and inform them that it is mandatory to be MSPO certified. Though we can get their contact information through the licensing details, some have moved and some are no longer actively managing their plantations. Q2: MSPO Standard does have labour elements in the standard to curb these kinds of issues. Currently, MSPO Standard is in process of Standard Revision where we are looking at strengthening further on overall requirements, including details of labour conditions, and putting in international indicators. Those cases involving the two big companies are merely based on allegations and we have not obtained any constructive evidence of such potential non-compliance from the importing countries. Our certification is based on a 3rd party audit where we have no influence over the outcome. As for both companies, the auditors reported no indication of forced labour being practiced. For more information, you may reach us at hellomspo@mpocc.org.my Thank you and have a good day.
2 years ago
Dear Mr Wong, Thank you for your question and interest in the MSPO certification scheme. Please find the answers below: Sustainable certification especially MSPO, does not advocate for higher value as it is a practice that needs to be adopted and become a culture of good practices. This is the reason why the MSPO was made mandatory certification through government initiative. Other vegetable oils do have sustainability certification; however, every crop has its own landscape and issues that the respective certification scheme will handle. For more information, you may reach us at hellomspo@mpocc.org.my Thank you and have a good day.
2 years ago
Dear Shaheen, Thank you for your question and interest in the MSPO certification scheme. Please find the answers below: 1. MSPO certification and other scheme does not deviate much from each other as the sustainability elements are more or less the same. Therefore, it is best to know that MSPO is a government initiative and mandatory which is most important to enforce sustainability across the palm oil industry to curb all potential non-compliance against sustainability. 2. MSPO audit works through a third-party independent body that will work between the Certificate Holder and the Certification Body (CB). Thus, the cost of auditing will remain between them. However, MPOCC will be monitoring the CB through the Accreditation Body. At this moment, no charges have been imposed by MPOCC for those who wish to get MSPO certification. For more information, you may reach us at hellomspo@mpocc.org.my Thank you and have a good day.
2 years ago