Sustainable Agriculture!
Palm Oil Agustina Besada Diana McCarthy-Bercury Jasmin Ines Rivera Padma Mahadevan June 2014
What is Palm Oil?
Developmental and Economical
Political and Social Challenges
2014 Estimated Palm Oil Production by Country 25,000.00
20,000.00
15,000.00
10,000.00
5,000.00
0.00
Source: Index Mundi, Export
Market: Palm Oil Uses Food Ingredient
No Food Ingredient
75%
22%
products in the Super Market
>50% Â
Market: Supply Chain Farmers
Consumers
Producers
others
Manufacturers and Retailers
Market: Unilever 4% = Largest Buyer
Strategies
Motivation
- Ambitious goals - Stakeholder engagement - Supply Chain control
- Cost to consumers and suppliers - Demand in West Europe - Business Growth Lever
Reputation and Legal Risk mitigation
Palm Oil Processing Flow Chart
Technology
Typical Fresh Palm Fruits
•
Source: Sukaribin 2009
•
Source : Cheng 2011
ESG: Risks Soil quality Loss of biodiversity Loss of Habitat for orangutans Deforestation Land acquisition Human rights violation Food Security
ESG: Malaysia – Palm Oil Production and Exports !20,000!!
!20,000!!
!18,000!!
!18,000!!
!14,000!!
1000$Tonnes$$
!16,000!!
Export!! Produc6on!! Export!Value!!
!14,000!!
!12,000!!
!12,000!!
!10,000!!
!10,000!!
!8,000!!
!8,000!!
!6,000!!
!6,000!!
!4,000!!
!4,000!!
!2,000!!
!2,000!!
!"!!!! 1960!
!"!!!! 1970!
1980!
1990! Year$
Data source: FAOSTAT (Refer to Appendix 1 for data)
2000!
2010!
USD$millions$
!16,000!!
5,000
2,000
4,500
1,800
4,000
1,600
3,500
1,400
3,000
1,200
2,500
1,000
2,000
800 Palm Oil
1,500
600
Rubber
1,000
All Other crops
500 -‐ 1960
400 200 -‐
1970
1980
1990 Year
Data source: FAOSTAT (Refer to Appendix 1 for data)
2000
2010
Area Harvested (1000s Ha)
Area Harvested (1000s Ha)
ESG: Malasya, Sustainable Palm Oil?
ESG: Land Use in Malasya 4,500
22,500
4,000
Area Harvested (1000s Ha)
3,000 Palm Oil
2,500
21,500
Rubber Forests
2,000
21,000
1,500 1,000
20,500
500 -‐ 1988
20,000 1993
1998
2003
2008
Year
Palm Oil Rubber Forest Area Data source: FAOSTAT (Refer to Appendix 1 for data)
Area (1000s Ha) 1990 2011 1746 4280 1614 1136 22376 20369
Difference 2534 -‐478 -‐2007
Area Harvested (1000s Ha)
22,000
3,500
ESG: Roundtable of Sustainable Palm Oil • Established in 2004 • Provides certification based on governing principles – Transparency, best practices, environmental responsibility
• Is it enough?
Thanks