COP29: Malaysia continues focusing on impactful strategies to drive global climate ambition
Can Regenerative Agriculture Make Palm Oil Sustainable?
Palm Oil Prices Set to Rally In 2025, With Aminvestment Now Overweight on Plantation
In The Hot Seat
Innovating for Impact: KROHNE’s Smart Solutions in Palm Oil
Process Instrumentation: Interview with Yannick Farine, Industry Specialist Vegetable Oils, KROHNE
Welcome to the first issue of Asia Palm Oil Magazine for 2025. This year begins with promising developments for the palm oil industry across Southeast Asia. Key highlights include Malaysia’s Budget 2025, which offers tax incentives and support for replanting, aimed at boosting productivity and sustainability in the sector. Additionally, the rollout of the MSPO 2.0 standard further strengthens Malaysia’s reputation for sustainable palm oil production.
Meanwhile, Indonesia’s plan to implement the B40 biodiesel mandate starting January 2025 is expected to increase local demand for palm oil and influence global supply and pricing. Market analysts predict palm oil prices could average RM4,600 per metric ton this year, offering both opportunities and challenges for industry players.
In this issue, we cover these important topics in depth and feature expert opinions, market forecasts, and interviews with key stakeholders. Our goal is to keep you informed and prepared for the evolving landscape of the palm oil sector.
On behalf of the editorial team, thank you for your continuous support of Asia Palm Oil Magazine. Stay in touch with us at www.asia-palmoil.com and follow us on Facebook and LinkedIn for more updates
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08 - COP29: Malaysia continues focusing on impactful strategies to drive global climate ambition
10 - Fakhrunniam Othman appointed as FGV’s new CEO
12 - MPOB: RM150 Windfall Profit Levy Increase Modest but A Step Forward
INDUSTRY NEWS
14 - Indonesia Eyes to Become World’s Palm Oil Price Setter
16 - Indonesia to Introduce B40 Biodiesel on January 1, 2025
18 - MKH Oil Palm’s FY25 Prospects Supported by Strong Demand For CPO
20 - Palm oil output in 2024 to recover in Malaysia, drop in Indonesia, Glenauk Economics says
22 - Palm oil potential seen in BARMM, 800K hectares identified
24 - Palm Oil Prices Set to Rally In 2025, With Aminvestment Now Overweight on Plantation
26 - Supplying 70% of Global CPO, Indonesia and Malaysia Agree on Palm Oil Industry Collaboration
28 - Thailand bans export of raw palm oil as production takes a hit
30 - Thailand cuts palm oil content in biofuel
Indonesia Eyes to Become World’s Palm Oil Price Setter
Palm oil potential seen in BARMM, 800K hectares identified
40 - Minister of Agriculture Jose Mai explores African palm oil industry in Honduras
Solidaridad, others synergise on oil palm traceability in Nigeria
> IN THE HOT SEAT
58 - Innovating for Impact: KROHNE’s Smart Solutions in Palm Oil Process Instrumentation: Interview with Yannick Farine, Industry Specialist Vegetable Oils, KROHNE
SPECIAL INSIGHT
62 - Four Things Nigeria Can Learn from Top Palm Oil Countries
42 - Can Regenerative Agriculture Make Palm Oil Sustainable?
48 - Solidaridad, others synergise on oil palm traceability in Nigeria > GREEN SOLUTIONS
52 - Can Artificial Intelligence Help Palm Oil in Colombia?
54 - DPMO With New Technology Seen More Profitable Than CPO?
56 - Indonesia adopts DNA tracing for palm oil seed quality
Four Things Nigeria Can Learn from Top Palm Oil Countries
- BERNAMApix
COP29: Malaysia Continues Focusing on Impactful Strategies to Drive Global Climate Ambition
As the 29th Conference of the Parties to the UN Framework Convention on Climate Change (COP29) enters its final week, the momentum at the Malaysian Pavilion continues to build, focusing on actionable strategies and impactful dialogues to drive global climate ambition.
In the first week of COP29, the Malaysia Pavilion has become a vibrant hub for meaningful knowledge exchange surrounding critical topics such as Future-Proofing Our Environment, Just Transitioning, ‘Powering’ Through Change, Closing the Loop in Local and Global Consumer Demands and Climate Tech.
The 26 sessions, featuring 39 prominent speakers representing local and international voices from various areas of focus attracted close to 910 attendees set to deepen discussions on Malaysia’s leadership in sustainable practices, regional collaboration and innovative solutions for a resilient future.
Malaysia has called for action and progress made during COP29 to reaffirm commitments to achieve net-zero targets, and regional cooperation as well as fostering a circular economy.
The pursuit of achieving a net-zero target by 2050 has emerged as a shared goal, driving both policy and action across various sectors globally. However, while technological innovations and
regulatory frameworks are evolving, the real challenge lies in ensuring climate finance flows smoothly for sustainable climate action.
Malaysia’s upcoming ASEAN chairmanship in 2025 remains a central focus with discussions highlighting the nation’s role in spearheading regional initiatives such as decarbonisation, biodiversity preservation and equitable climate finance.
Furthermore, Malaysia’s energy and palm oil sectors once again take centre stage with a focus on ensuring economic and social equity during Malaysia’s transition to low-carbon pathways.
Malaysia’s participation at COP29, being held from Nov 11 to 22 at Baku Stadium, underscores the country’s commitment to a green economy as outlined in Budget 2025. The 200-member Malaysian delegation is led by Natural Resources and Environmental Sustainability Minister Nik Nazmi Nik Ahmad.
The Malaysian Pavilion at COP29, themed ‘Shift for Sustainability: Climate Action Now!’, is spearheaded by the Ministry of Natural Resources and Environment (NRES) in collaboration with the Malaysian Green Technology and Climate Change Corporation (MGTC) as the implementing agency.
Fakhrunniam Othman Appointed as FGV's New CEO
FGV Holdings Bhd has announced the appointment of Fakhrunniam Othman as the new group chief executive officer.
Fakhrunniam, 57, currently serves as the group divisional director of FGV’s Logistics and Support Division, a role he has held since Jan 1, 2023.
His career spans more than 31 years, beginning with Caltex Oils Malaysia Ltd in 1992.
He also brings extensive experience within the FGV Group, having joined as an accountant with Felda Holdings Bhd (FHB) in 2000.
Following rotations, expanding responsibilities, and performance evaluations within FHB, Fakhrunniam was promoted to general manager in 2004 and senior general manager of Finance in 2006.
From 2008 to 2011, he served as deputy chief financial officer and company secretary for a US-based firm, Twin Rivers Technologies (TRT) Inc, which provided him with significant global exposure in investments, oils and fats, and oleochemicals.
Upon returning to FGV, Fakhrunniam joined the group’s strategy division as vice president, where he was involved in FGV’s listing.
From 2013 to 2016, he also held the role of CEO at FGV Marketing Services Sdn Bhd, FGV Trading Sdn Bhd, and FGV Transport Sdn Bhd.
He was later appointed as chief strategy officer in 2017, chief investment officer (2019-2022), and undertook an interim role as acting CEO of MSM Holdings Bhd in September 2020.
Fakhrunniam holds a Master of Business Administration (MBA) in General Management from the Royal Melbourne Institute of Technology (RMIT), Australia.
He is a certified accountant, qualified through the Association of Chartered Certified Accountants (ACCA) in the UK, and is a member of the Malaysian Institute of Accountants.
FGV Holdings Bhd has announced the appointment of Fakhrunniam Othman as the new group chief executive officer. File pic
MPOB: RM150 Windfall Profit Levy Increase Modest but A Step Forward
Under the 2025 Budget the government announced an increase in the levy threshold to RM3,150 per tonne for Peninsular Malaysia and RM3,650 per tonne for Sabah and Sarawak.STR/AZHAR
The increase in the threshold for the windfall profit levy (WPL) by RM150 for palm oil producers is modest but a step forward to alleviate pressure from rising production costs of palm oil, the Malaysian Palm Oil Board (MPOB).
Under the 2025 Budget (Belanjawan 2025) the government announced an increase in the levy threshold to RM3,150 per tonne for Peninsular Malaysia and RM3,650 per tonne for Sabah and Sarawak from Jan 1, 2025. The rate of levy remains at 3 per cent.
MPOB director general Datuk Dr Ahmad Parveez Ghulam Kadir in a statement today said the adjustment allows plantation companies to operate more efficiently, especially in the face of a competitive global vegetable oil market.
With the raised levy threshold, companies can plan investments focusing on long-term initiatives, including strategic investments in the replanting of aging palm trees, thereby increasing farm productivity.
He also said that the RM65 million allocation to address misconceptions about palm oil at the international level, particularly from the European Union, is a strategic move to strengthen the Malaysian palm oil market.
“This initiative not only combats anti-palm oil campaigns but also corrects misunderstandings about palm oil. It also includes efforts to enhance the sustainability of the palm oil
sector through the Malaysian Sustainable Palm Oil (MSPO) certification,” Ahmad Parveez said.
He added that the MSPO certification is crucial for improving the reputation of Malaysian palm oil both locally and internationally.
It demonstrates the country’s commitment to ensuring that the palm oil industry adheres to sustainable practices in line with international standards.
In this context, the MPOB sees the need for these funds to empower smallholders through the Sustainable Palm Oil Cluster (SPOC).
Through the SPOC approach, smallholders receive advisory support from MPOB on sustainable practices aligned with sustainability principles.
Smallholders play a significant role in the Malaysian palm oil supply chain.
Ahmad Parveez said a budget allocation of RM100 million under the 2025 Budget is also expected to benefit over 1,500 smallholders across an area of 5,900 hectares.
The implementation of the replanting incentive encourages smallholders to replace unproductive aging palm trees, thereby enhancing palm oil yields and increasing their income.
Parveez also said that the government’s initiative to provide tax incentives for automation and raise the minimum wage to RM1,700 per month is expected to attract local workers to careers in the plantation sector.
The tax incentives for automation will encourage palm oil plantation companies to adopt modern technologies such as drones and artificial intelligence (AI), which can enhance farm productivity and reduce reliance on foreign workers.
“The increase in the minimum wage is a positive step that will boost the income of workers involved in the palm oil industry chain,” he said.
RAMLI
Indonesia Eyes to Become World’s Palm Oil Price Setter
Indonesia’s Ministry of Agriculture has set a target of making the country the world’s largest palm oil producer by 2025, enabling it to influence global prices of the commodity.
Deputy Minister of Agriculture Sudaryono said that Indonesia targets to have the capacity of setting prices as soon as possible, Indonesian news agency ANTARA reported.
To achieve this, he urged farmers and palm oil entrepreneurs to view Indonesia’s palm oil plantations as high-priority agricultural areas requiring special attention to strengthen the national economy.
He also noted that Indonesia already has the technology needed to produce high-quality oil palm seeds.
He said that Indonesia can assess the suitability of a seed for planting before it sprouts, which is important in setting a standard for Indonesian oil palm seeds.
The official said that B50 is Indonesia’s bargaining chip on the international stage. Even if other countries are not interested in the product, the country could use it domestically. The presence of B50 gives Indonesia options to optimally absorb its palm oil outputs.
He added that the Indonesian government has carefully calculated how much palm oil to export and how much to allocate for domestic use to ensure that the goods will make a great contribution to Indonesian economy.
Source: www.en.vietnamplus.vn
Illustrative photo (Photo: antaranews.com)
Indonesia to Introduce B40 Biodiesel on January 1, 2025
Coordinating Minister for Economic Affairs Airlangga Hartarto stated that the use of biodiesel with 40 percent palm oil-based vegetable fuel or B40 will be implemented starting on January 1, 2025. This is in line with the mandatory B40 biodiesel program.
“For B40 biodiesel, we are committed to starting on January 1 (2025),” Airlangga said on Saturday, November 30, 2024.
Airlangga revealed that this B40 biodiesel will still be implemented even if the price of palm oil has skyrocketed recently. If there is a price difference due to the increase in the price of palm oil, Airlangga stated that it would be addressed by the Indonesian Oil Palm Plantation Fund Management Agency (BPDPKS).
“BPDPKS is willing to finance the price gap below the new palm oil price,” he said.
Airlangga mentioned that this program has successfully contributed to global efforts to reduce emissions. In addition, this program is also part of President Prabowo Subianto’s major program to achieve food security, food self-sufficiency, energy self-sufficiency, and the downscaling of the plantation industry, especially palm oil.
Earlier, Airlangga said the implementation of B40 would increase the use of crude palm oil (CPO) as a feedstock for fuel. However, he assured that the supply of CPO would still be sufficient to meet the demand for B40.
MKH Oil Palm’s FY25 Prospects
Supported by Strong Demand For CPO
MKH Oil Palm (East Kalimantan) Bhd said its prospects for the financial year ending Sept 30, 2025, is well-supported by strong market demand for crude palm oil.
“There has been stable demand for CPO; bolstered in part by Indonesia’s planned adoption of biodiesel mandate in January 2025 from B35 biodiesel to B40 biodiesel, the relatively tight global supply in other vegetable oils and fats, and strong seasonal demand,” said chairman Tan Sri Alex Chen Kooi Chiew @ Cheng Ngi Chong in a statement.
He added that the company is also in the midst of conducting its due diligence exercise for its planned land acquisitions, for which relevant announcements will be made in stages in the near future.
Additionally, the company is also researching the integration of fish-rearing within its plantations to boost efficiency and as part of its environmental, social, and governance efforts.
In the fourth quarter ended Sept 30, 2024, MKH recorded a net profit of RM21mil on revenue of RM90.59mil.
There are no comparative figures from the year-ago quarter as the company was only listed on the Main Market of Bursa Malaysia on April 30 this year.
For the full financial year, the group posted a net profit of RM63.56mil on revenue of RM352.22mil as compared to RM30.9mil and revenue of RM338.16mil in the previous year.
MKH Oil Palm declared a second interim single tier dividend of two sen per share to be paid on Dec 30, 2024, to shareholders whose name appear on the company’s record of depositors on Dec 13, 2024.
MKH Oil Palm (East Kalimantan) chairman Tan Sri Alex Chen Kooi Chiew
Palm Oil Output In 2024 To Recover in Malaysia, drop in Indonesia, Glenauk Economics Says
Malaysian palm oil output is expected to recover this year as foreign workers arrive on plantations, while output by Indonesia is seen dropping by just over a million metric tons, analyst Julian McGill told a palm oil conference on Friday.
Next year, output by Indonesia, the world’s biggest producer, is expected to recover by 1.5 million tons, McGill, managing director at consultancy Glenauk Economics, told the Indonesia Palm Oil Conference in Bali.
Malaysian palm oil prices are seen trading at around $950 to $1,050 per metric ton in 2025, he said, while Indonesia’s crude palm oil FOB price is seen at $1,000 per ton before the end of 2024.
The benchmark palm oil contract in Malaysia was trading at around 5,000 ringgit ($1,141) per ton on Friday. – Reuters
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Palm Oil Potential Seen In BARMM, 800K Hectares Identified
The Philippine Palm Oil Development Council, Incorporated (PPDCI) has identified the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) as suitable for oil palm plantations.
“With so much land available, we don’t have to go far. Even around BARMM, which is suitable for oil palms, we have identified around 800,000 hectares,” PPDCI president Erwin Anthony Garcia said during the culmination of the 13th Palm Oil Congress here Thursday.
Garcia said the Philippines relies heavily on palm oil demand from the neighboring nations of Indonesia and Malaysia, with our country importing 1.2 million metric tons (MT) of palm oil products last year.
“This trend underscores the urgency to wrap up our local production capacity and reduce our independence on external sources. This 1.2 million MT is equivalent to an estimated 250,000 to 300,000 hectares of plantation,” he said.
Garcia’s group aims to plant palm oil trees on 5,000 hectares of land this year and improve the country’s around 100,000 hectares of oil palm farms.
“Last year, we successfully planted an estimated 2,000 hectares of new planting in various areas of the country. This ambitious target underscores our commitment to rejuvenating our industry and addressing the challenges of aging oil palm trees,” he added.
Garcia urged the government to recognize the immense potential of the oil palm sector as a powerful tool in eradicating poverty and insurgency within the countryside.
As a response, Mindanao Development Authority (MinDA) Secretary Leo Tereso Magno committed to advocating for the palm oil industry, assuring stakeholders with the Department of Agriculture (DA) support to bolster the sector’s development.
“I will meet with the DA to discuss the possible assistance the government can extend to your industry,” he said in a statement.
Magno underscored the palm oil industry’s potential to lift the Philippines from a minor to a major player, despite its ranking 16th among global producers.
“The potential is clear. We can increase the industry’s yield if we optimize our advantages in good agro-climatic conditions and rich human resources,” he said. (PNA)
Palm Oil Prices Set to Rally In 2025, With Aminvestment Now Overweight on Plantation
Palm oil prices will strengthen in 2025, as tight supply of edible oil boosts earnings of Malaysian planters, AmInvestment Bank said in recommending that investors add exposure to the sector.
Crude palm oil (CPO) may average 6.3% higher in 2025, thanks to shortages of palm oil, as well as that of competing rapeseed and sunflower oils, the research house said in upgrading the sector to “overweight”. Further, growing biodiesel use and restrictions will curb Indonesia’s exports, it noted.
“We expect palm oil production in Malaysia to ease after a bumper harvest in 2024, and the ongoing freeze in foreign worker recruitment,” AmInvestment said and raised its projections for CPO price to RM4,250 per tonne.
Prices of the edible oil used in everything from lipstick to diesel have climbed this year, as poor weather conditions in Malaysia and Indonesia, which together account for more than 80% of the global supply, stoked concerns over output.
The benchmark third-month CPO futures have climbed 33% so far this year, averaging nearly RM4,000 per tonne. Bursa
Malaysia Plantation Index, which tracks 43 stocks in the sector, has gained about 9% year-to-date.
AmInvestment’s forecast stood in stark contrast to Malaysia’s official projection in October that called for CPO price to ease to RM3,500-RM4,000 in 2025, as the government expects production to rise with an increase in harvesting activities, amid better weather and labour conditions.
Unlike in previous years, CPO prices may not fall sharply in the remaining months of 2024, as importers step up purchases before the European Union Deforestation Regulation (EUDR) is implemented at the end of 2025, AmInvestment noted.
The EU would be short by as much as 600,000 tonnes, if just 10% of the usual annual imports of five- to six million tonnes of palm products fail to comply with the onerous regulation, the house said, noting that smallholders account for 30%-40% of CPO production in Indonesia, and 26% in Malaysia.
For strategy, AmInvestment’s top pick is Kuala Lumpur Kepong Bhd for the young age profile of its oil palm trees and strong recovery in downstream earnings.
Supplying 70% of Global CPO, Indonesia and Malaysia Agree on Palm Oil Industry Collaboration
Member countries of the Council of Palm Oil Producing Countries (CPOPC), including Indonesia and Malaysia, are committed to supporting the sustainability of the global palm oil industry.
Indonesia’s Coordinating Minister for Economic Affairs, Airlangga, stated that Indonesia and Malaysia have agreed to strengthen their collaboration over the next year. This initiative is a form of synergy between nations to address the challenges faced by the palm oil industry.
“We value the partnership and collaboration established with palm oil-producing countries,” Airlangga said during a press conference at the 12th Council of Palm Oil Producing Countries (CPOPC) Ministerial Meeting in Jakarta on Friday, November 29.
He emphasized that Indonesia’s commitment to the palm oil sector aligns with President Prabowo Subianto’s programs, particularly regarding food security, self-sufficiency in food
and energy, and the downstream development of plantation industries, including palm oil.
At the same event, Malaysia’s Minister of Plantation and Commodities, Datuk Seri Johari Abdul Ghani, highlighted Indonesia’s status as the second-largest palm oil producer. Together with Malaysia, the two countries contribute more than 70% of the world’s palm oil supply. “I believe the contributions managed by these two countries are critical for the world,” he said.
Johari underscored the importance of collaboration between Malaysia and Indonesia, as the two nations represent the global voice in ensuring standardized practices for palm oil products.
“We must unite our voices to ensure that palm oil standards are globally recognized. It is essential for us to work together in addressing these issues, whether in terms of empowerment or compliance with global regulations,” Johari explained.
Coordinating Minister for Economic Affairs Airlangga Hartarto and Malaysia’s Minister of Plantation and Commodities Datuk Seri Johari Abdul Ghani at the Press Conference for the 12th Ministerial Meeting of CPOPC.
Thailand Bans Export of Raw Palm Oil as Production Takes a Hit
Thailand’s Department of Internal Trade has temporarily banned the export of raw palm oil due to reduced production caused by drought and plant diseases.
The restrictions, expected to last until December, aim to stabilise local prices and ensure adequate stock levels.
Commerce Minister Pichai Naripthaphan highlighted that current market conditions reflect a significant decrease in oil palm output, necessitating measures to protect both farmers and consumers from inflated prices.
Goranij Nonejuie, deputy director-general of the department which comes under the Commerce Ministry, confirmed that prices are currently satisfactory at 8-9 baht per kg, but emphasised the need to monitor bottled palm oil prices closely.
The ministry has coordinated discussions with the Palm Oil Extraction Mills Association and various retailers to manage stock levels and delay price adjustments for consumers.
The extraction mills association and the Palm Oil Refinery Association have pledged to cooperate with the government’s efforts. They have agreed to suspend exports and work together to stabilise prices.
Additionally, retailers and wholesalers have committed to maintaining reasonable prices for bottled palm oil and implementing promotional offers to alleviate the impact on consumers.
With a crude palm oil stock exceeding 200,000 tons, the associations have committed to suspending exports until the situation improves, with plans to revisit this in January 2025.
To prevent price gouging, the department has warned that violators could face up to seven years in prison or a fine of up to 140,000 baht. Concerns about rising vegetable oil prices will continue to be monitored. Consumers are encouraged to report any irregularities via the department hotline or their mobile application.
Source:
Pichai Naripthaphan
Thailand Cuts Palm Oil Content in Biofuel
Thailand’s Ministry of Energy announced last Friday that it will reduce the palm oil content in its biofuel from 7% to 5% to deal with rising palm oil prices.
Thai Deputy Prime Minister and Energy Minister Pirapan Salirathavibhaga said this move, approved at a meeting of the Energy Policy and Planning Office (EPPO) last Thursday, will help reduce biofuel costs.
The reduction in palm oil used in biofuel is expected to take effect from November 21. Accordingly, B7 biofuel, a blend of 7% palm-based biofuel and 93% petroleum diesel, will be converted to B5, a blend with 5% palm-based biofuel and 95% petroleum diesel.
Pirapan said the ministry has notified the National Palm Oil Policy Committee of this change and assured drivers that the switch from B7 to B5 will not negatively impact their vehicle engines.
The recent surge in crude palm oil prices has pushed the retail price of biodiesel to at least 48 THB per liter.
Since May 1, 2024, Thailand has discontinued the sale of B10 biodiesel, leaving only two types on the market: B7 and B20. B7 has been renamed biodiesel, while the name of B20 remains unchanged.
Thailand cuts palm oil content in biofuel. Photo courtesy of nationthailand.com
EUDR Compliance A Challenge for Thai Palm Oil
In Thailand, an unconventional palm oil supply chain makes traceability, and therefore EUDR certification, much more difficult.
Traceability is a vital part of the upcoming EUDR. In order for a commodity to be compliant with the regulation, sellers of an EUDR-covered commodity must be able to trace said commodities back to their source.
EUDR compliance in palm oil is, according to the Roundtable on Sustainable Palm Oil (RSPO), significantly advanced, as it told FoodNavigator in a recent interview.
However, in Thailand, unique attributes of its supply chain make traceability, and therefore EUDR compliance, more difficult than in other markets.
A Smallholder-Dominated Market
In Thailand, 85% of palm oil is grown by smallholders, according to the RSPO. The land in the country is allocated to those people who live in the area, rather than large companies.
Because of the Thai government’s free-trade policy, according to Trin Phongpetra, Executive Committee of Thaksin Palm Group, Business Support Division and President of Federation of Thai Industries in Surat Thani province, processing mills can be opened easily and thus competition between the mills is acute. In this model, smallholders are free to sell to any mills they want.
Image Source: Augustus Bambridge-Sutton (Augustus Bambridge-Sutton)
After implementation, this model eventually led to a system where smallholders would contract professional harvesters to harvest the palm, as well as fruit collectors to collect it. In this system, many of the palm cultivators actually do not work the land.
Because of the longer supply chain, the palm is less fresh, and the extraction rate is lower. In Indonesia and Malaysia, according to Phongpetra, the extraction rate is roughly 21-23%, whereas in Thailand it is only 18-19%.
How Intercropping Can Protect Smallholders
Palm oil is, like all commodities, often at the mercy of fluctuating global prices, due to shifting demand from consumers. For smallholders, this can provide an obstacle to maintaining their income. Unpredictable weather patterns due to climate change can exacerbate this problem. Intercropping can provide a fallback option, a failsafe in case things go wrong.
In Thailand’s Surat Thani province, FoodNavigator spoke to oil palm smallholders who utilised intercropping. Throughout the farm we saw, smallholders grow pandan leaf, a tropical plant often used in South East Asia for desserts. The crop is not eaten by insects and in fact repels them, making it a secure alternative source of income for farmers, and can also grow in the shade, meaning it can be grown underneath palm trees.
Source: www.foodnavigator.com
Pandan leaf is popular in Thailand, and is not exported but mainly sold domestically. Thus, it is not at the mercy of globally fluctuating prices.
How Does This Affect EUDR Compliance?
Very little of Thailand’s palm goes to the EU, and the palm oil that does is usually within food products. However, Thai palm that is exported there is less likely to comply to the EUDR due to the more complex supply chain in Thailand.
This is because it is far more difficult to keep traceability data. As the harvesters and fruit collectors are not tied to a specific plot of land, the palm that they sell to the crushing mill cannot be traced back to a piece of land declared free of deforestation.
They must, Phongpetra suggested, be given tools which will allow them to assess the land of the cultivators which they’re harvesting on, and ascertain whether the palm that they’re harvesting is deforestation-free.
Image Source: Augustus Bambridge-Sutton (Augustus Bambridge-Sutton)
India Launches National Missions on Edible Oils and Palm Oil in Bid to Boost Country’s Vegetable Oil Production
The Indian government has launched two missions – on edible oils and palm oil – in a bid to ensure food security and end its reliance on imports, Policy Circle reported on 7 October.
With a focus on increasing edible oil production from oil palm, the National Mission of Edible Oils – Oil Palm (NMEOOP) will run from 2024/25 to 2030/31.
“Considering the growing domestic demand for edible oils, the staggering deficiency and the cost to the exchequer on account of imports, the urgency of scaling up the oil palm area is of national interest,” a statement on the government website said.
“The aim is to enhance edible oilseeds production and oils availability in the country by harnessing oil palm area expansion, increasing crude palm oil (CPO) and reducing imports.”
India produced 39M tonnes of oilseeds in 2022/23, but the government planned to increase this to 69.7M tonnes under the national oilseeds scheme, Policy Circle wrote.
It also aimed to improve yields from 1,353 kg/ha to 2,112 kg/ ha and raise domestic edible oil production from 12.7M tonnes to 20.2M tonnes by 2030-31, the report said.
Oilseeds are currently planted on approximately 29M ha of land, but the plan is to expand oilseed cultivation by bringing an additional 4M ha under production by focusing on planting on rice and potato fallow land, promoting intercropping, promoting high-yielding oil-rich seed varieties and diversifying crop choices, according to the report.
India imports around 9M tonnes/year of palm oil, around 56% of total edible oil imports, but the schemes aimed to reduce this to around 28% over the next seven years, the report said.
To curb imports, the focus would be on boosting the production of key crops such as mustard, groundnut, soyabean, sunflower and sesame and the government also planned to increase oil extraction from secondary sources like cottonseed, rice bran and tree-borne oils.
In addition, the government would support the development of high-quality seeds using global technologies such as genome editing, the report said.
As part of the NMEO-OP initiative, seed gardens and oil palm nurseries would be set up to ensure the domestic availability of seedlings.
Source: www.ofimagazine.com
Barn owls are used in the biological control of destructive rodents on plantation. The use of barn owl house not only is an economical and effective non-toxic way to control gophers in the wildlife ecosystem, but also helps to comply with RSPO’s principles as oppose other alternative common method of rodent control on plantations using pesticides and fires pose a risk to non-target wildfire.
Barn owls are used in the biological control of destructive rodents on plantation. The use of barn owl house not only is an economical and effective non-toxic way to control gophers in the wildlife ecosystem, but also helps to comply with RSPO’s principles as oppose other alternative common method of rodent control on plantations using pesticides and fires pose a risk to non-target wildfire.
PRODUCT
FEATURES
PRODUCT FEATURES
Product dimension : 600mm(L) x 430mm(W) x 550mm(H)
Product weight : 6kg
Product dimension : 600mm(L) x 430mm(W) x 550mm(H)
Product weight : 6kg
Good thermal insulation using thermoset material and venting holes in the house provides air circulation in and around the house keeping the entire house temperature consistent and cool.
Good thermal insulation using thermoset material and venting holes in the house provides air circulation in and around the house keeping the entire house temperature consistent and cool.
Door on rear panel of the house facilitates easy cleaning.
Door on rear panel of the house facilitates easy cleaning
Moulded steel sheet on the inner wall of the base panel prevents scratch by owl claw.
Moulded steel sheet on the inner wall of the base panel prevents scratch by owl claw. 2 compartments inside owl house is designed for reproduction of barn owl.
A 4" flange is moulded on the outer wall of the base panel to attach to pole or post
2 compartments inside owl house is designed for reproduction of barn owl.
A 4" flange is moulded on the outer wall of the base panel to attach to pole or post
The outer wall coloured in green is in harmony with the environment in the plantation. The inner wall coloured in black enables the owl to rest during the day and hunt at night.
The outer wall coloured in green is in harmony with the environment in the plantation. The inner wall coloured in black enables the owl to rest during the day and hunt at night.
BENEFITS
BENEFITS
Optimise yield by reducing incidence of damage inflicted by rodents.
RSPO compliance in controlling rodents in plantations.
Optimise yield by reducing incidence of damage inflicted by rodents.
RSPO compliance in controlling rodents in plantations.
Savings in labour cost due to easy installation (DIY method with installation manual provided).
Savings in labour cost due to easy installation (DIY method with installation manual provided) Light weight enables better mobility and wider coverage in plantations.
Light weight enables better mobility and wider coverage in plantations.
Barn owl house's consistent temperature provides conducive living environment for the owl. Harmonious with environment lures barn owl to the owl house. It is durable and weather resistant (3 years life span).
Barn owl house's consistent temperature provides conducive living environment for the owl
Harmonious with environment lures barn owl to the owl house. It is durable and weather resistant (3 years life span).
Barn Owl House complete assembly
Carton box packaging size : 770mm(L) x 650mm(W) x 120mm(H)
Packaging for Pre-assembled unit in carton box
Barn Owl House complete assembly Carton box packaging size : 770mm(L) x 650mm(W) x 120mm(H) Packaging for Pre-assembled unit in carton box
MASTER APPROACH SDN BHD (226209 V)
Lot 2755, Jalan Raja Nong, 41200 Klang Selangor Darul Ehsan, Malaysia
Indonesia’s Palm Oil Industry Welcomes EU’s Deforestation Rule Delay to 2025
The Indonesian palm oil industry welcomes the European Union’s decision to postpone its deforestation regulation by a year, now set for enforcement on Dec. 31, 2025. The delay offers time for industry adaptation, allowing palm oil businesses to comply with new rules, and address transparency in supply chains. The European Commission’s formal announcement is expected next week.
Eddy Martono, Chairman of the Indonesian Palm Oil Association (Gapki), said this delay alleviates industry concerns. The sector, he said, is already highly sensitive to fluctuations in energy prices, global demand, weather, and evolving trade policies.
“We welcome this decision as it grants the necessary time to prepare and implement full compliance,” he said at the opening of the 20th Indonesian Palm Oil Conference and 2025 Price Outlook (IPOC 2024) in Nusa Dua, Bali, on Thursday.
IPOC 2024, themed “Seizing Opportunities Amidst Global Uncertainty,” is bringing together stakeholders to discuss these industry dynamics.
Chairman of the Indonesian Palm Oil Association (Gapki), Eddy Martono, delivers opening remarks at the 20th Indonesian Palm Oil Conference and 2025 Price Outlook (IPOC 2024) in Nusa Dua, Bali, on Thursday, November 7, 2024.
The European Union Deforestation Regulation (EUDR), which became law in mid-2023, mandates that products such as beef, cocoa, coffee, palm oil, and rubber must be “deforestationfree” to enter the EU market. These goods cannot be sourced from land cleared after 2020, replacing the previous EU Timber Regulation. Initially, EUDR compliance was set to begin on Dec. 30, 2024, for large businesses, with smaller enterprises to follow a year later.
Eddy said that Indonesia’s palm oil industry, a vital component of the national economy, faces challenges such as stagnant production, complex regulatory requirements, and shifting global trade patterns. The Indonesian government and industry leaders are working to strengthen sustainable practices, especially as the country aims to increase its biodiesel program to B50 by 2026. The B50 refers to the policy of increasing the palm oil blend in Indonesia’s biodiesel to 50 percent.
Gapki supports the new administration under President Prabowo Subianto in advancing policies that sustain the global competitiveness of Indonesia’s palm oil sector, which generated over $17 billion in export revenue by August 2024.
By August, Indonesia’s palm oil production reached 34.7 million tons, with exports, including biodiesel and oleochemicals, totaling over 20.1 million tons. However, Eddy said, “This performance is lower than the same period last year, with 2023 production at 36.2 million tons, exports at 21.9 million tons, and export value exceeding $20.59 billion.”
He cautioned that domestic replanting programs must accelerate and that international advocacy for fair trade is essential, as regulations like the EUDR could impose significant economic burdens.
The 20th Indonesian Palm Oil Conference (IPOC) in Bali this week is set to tackle these challenges, with industry leaders discussing strategies to navigate global uncertainties and strengthen Indonesia’s role as a key player in renewable energy and food production.
Stakeholders are mobilising efforts to unlock Nigeria’s $10 billion palm oil export potential, aiming to enhance agricultural productivity and competitiveness.
Despite being a major producer historically, Nigeria currently exports only $1.34 million in palm oil, ranking 78th globally, while importing $372 million annually
A research and advisory firm, Vestance, launched a new report that revealed significant untapped opportunities within Nigeria’s oil palm sector.
The report, titled “Reclaiming Lost Glory: Nigeria’s Palm Oil Renaissance,” was unveiled October 30 in Lagos.
Vestance’s Research Lead, Razaq Fatai, said the report illustrates the immense opportunities lying dormant in the country’s underutilised oil palm plantations, noting that by capitalising and rejuvenating these plantations, Nigeria could generate over $10 billion in export revenue alone.”
He noted that Nigeria’s palm oil production began to decline during the country’s civil war between 1967 and 1970, saying,
“It is now time to begin to reverse the decline and put the sector back on track.”
The launch event featured a panel session where experts spoke on the findings of the report and provided insights on ways to revitalise the oil palm sector.
The session, moderated by Vestance’s Chinwe Abuwa, brought together three distinguished industry figures who shared their perspectives on the future of Nigerian palm oil.
Managing director, SWAgCo (O’dua Investment Group), Dr. Adewale Onadeko, stressed the necessity for Nigeria to embrace an agro-industrial cluster strategy.
He explained, “A cluster approach integrates essential infrastructure such as seeds, fertilisers, extension services, processing, and storage facilities.”
“This method allows for smallholder farmers to be incorporated into a cohesive unit, operating within a 25 km radius. Companies like Presco and Okomu have successfully implemented this strategy. By bringing farmers together and
providing them with the necessary tools and knowledge, we can significantly boost productivity and efficiency,” Onadeko added.
Another panellist, Dr. Bayo Ogunniyi, Country Programme Analyst for International Fund for Agricultural Development, highlighted the myriad challenges confronting smallholder farmers, particularly the lack of access to finance and the prevalence of old, low-yield seeds.
He underscored the urgent need for Nigeria to distribute highquality seeds to smallholder farmers to enhance production levels. Dr. Ogunniyi also pointed out that the oil extraction rates of smallholder palm oil processors are alarmingly low, often falling below 15 per cent, compared to the 25 per cent extraction rates achieved by modern processing mills. Improving these extraction rates is crucial for maximising the output from Nigeria’s palm oil sector.
In his own contribution, CEO of BulkDirect, Ramses Najem, emphasised the importance of situating processing facilities closer to the farms to reduce transportation challenges. He further said, “We must support small-scale farmers by providing them with the necessary financial resources, processing facilities,
and extension services. This support is important if we want to transform Nigeria’s dependence on imported palm oil into selfsufficiency and export capability.”
Speakers at the launch called for a nationwide adoption of high-yield seeds to boost production, investment in modern processing facilities to increase oil extraction rates, and the development of strategic transportation networks to streamline the supply chain.
Programme manager of Vestance, Rildwan Bello, said, “We at Vestance are committed to helping unlock the immense potential in African agriculture. Through comprehensive studies like the Palm Oil Report, we provide valuable insights and strategic guidance aimed at transforming the agricultural and food sectors.”
Bello called on stakeholders in the palm oil sector, including government agencies, private sector investors, smallholder farmers, research institutions, and development partners to work together to help bring the palm oil sector back to its glory days.
Minister of Agriculture Jose Abelardo Mai and team visiting Hondu Palma, African palm factory, in Honduras. Minister Mai is about to lift an oil palm fruit bunch. These are clusters of fruits from the African oil palm tree (Elaeis Guineensis), which are harvested for their oil. Each bunch contains many individual fruits that are processed to extract palm oil. – Photo Credit: MAFSE
Can Regenerative Agriculture Make Palm Oil Sustainable?
Large trials in Indonesia and Malaysia are showing it is possible to become sustainable without damaging productivity or local economies.
The palm oil boom that took hold in the late 1980s and 1990s in Malaysia and Indonesia has now replaced vast areas of biodiverse, tropical rainforest and peatland with oil palm monocultures: regimented rows of trees, usually kept bare of other vegetation with chemicals.
This degradation of ecosystems has significantly contributed to greenhouse gas emissions, and the decline of orangutans, proboscis monkeys and other endemic species. There are now about 21 million hectares of oil palm plantations around the world – approximately 30 times the size of Jakarta’s metropolitan area.
Facing growing public concern, the industry is trying to reduce its environmental impact. Zero-deforestation commitments and sustainability certification schemes have emerged, while academics have been advocating for sustainable farming strategies and guidelines.
This call is being answered with pioneering, large-scale trials that are testing various restorative and regenerative approaches. Crucially, these solutions must balance sustainability with productivity, to protect local economies and communities. So, how are they doing it?
What Are Regenerative Approaches to Agriculture?
Falling under the umbrella of sustainability, the idea at the core of regenerative agriculture is to go beyond conserving or sustaining ecosystems for farming, to cultivate land in ways that benefit and improve ecosystems.
These agricultural practises take many forms. For example, combining crops and trees (agroforestry) improves soil health and biodiversity, while sowing fields with different plants between seasons (cover-cropping) minimises soil exposure and erosion, keeping important nutrients in the ground.
This type of farming incorporates both ancient and emerging techniques, and as such it may go by a multitude of different names. Common alternative names or sub-categories of regenerative agriculture include “agri-regeneration”, “agroecology”, “climate-smart farming”, “carbon farming” or “biointensive agriculture”.
Island Efforts
A five-year experiment led by Germany’s University of Göttingen has found that introducing “islands” of native trees within oil palm plantations can help to restore ecosystem functions and biodiversity without decreasing crop yields.
The Ecological and Socioeconomic Functions of Tropical Lowland Rainforest Transformation Systems (EFForTS) trial was the first experiment to test the tree islands concept within an actively producing oil palm plantation. Previously, only inactive, post-agricultural degraded land had been used for trials. Working with a mid-sized oil palm company, researchers set up 52 tree islands of different sizes across a 140-hectare plantation in Sumatra, Indonesia.
The results, published in 2023, were more promising than anticipated. “It increased biodiversity and ecosystem functioning overall, and it doesn’t decrease oil palm yield at this stage,” says Clara Zemp, who led the study. “For restoration it’s a suitable strategy and for productivity it’s still compatible.” This approach could also promote soil fertility and make oil palm production more resilient to climate change.
The EFForTS trial found tree islands offer multiple ecological benefits, such as better water filtration, biomass input and soil fertility, compared to conventionally managed oil palm. Over a five-year period, there was no loss in productivity. After five to seven years, there could be marginal declines as the trees start competing with the oil palms in the area they were planted, which in this case covered less than 5% of the total plantation.
Restoration Of River Margins
The Biodiversity and Ecosystem Function in Tropical Agriculture (BEFTA) programme is another long-term research project based in Sumatra. It collaborates with an industry partner, Golden Agri-Resources, to test potential strategies for biodiversity and ecosystem restoration.
“Restoration is one of those areas – so little is known about it – understanding how best to do that in an oil palm context is quite important,” says Edgar Turner, a University of Cambridge zoology professor who co-pioneered the BEFTA programme.
A good starting point, Turner suggests, is restoring river margins in oil palm landscapes – many have been lost through planting that violated national regulations and sustainability requirements. These planted oil palm trees along river margins can cause soil erosion and increase the likelihood of chemical run-offs polluting rivers.
Furthermore, riparian zones provide important habitat and connectivity for many endangered species. In Sabah in northern Malaysian Borneo, WWF-Malaysia is collaborating with the state-owned oil palm company Sawit Kinabalu to restore a four-kilometre riparian corridor. It connects Silabukan Forest
The palm oil boom led to large-scale deforestation in places such as Sabah, Borneo. Now, experiments are taking place to test sustainable approaches (Image: RDW Aerial Imaging / Alamy)
Reserve to the Tabin Wildlife Reserve, facilitating movement of an isolated population of approximately 50 orangutans.
“River systems are coming out as being a really key management point for oil palm plantations,” says Turner. “They’re not a huge area and they’re not the most productive, so you can restore them and potentially you can have quite a big impact.”
Regeneration During Replanting
The Riparian Ecosystem in Tropical Agriculture project, which is part of the BEFTA programme, tests different restoration methods against conventional management. It has been running for six years. “Where we planted forest trees, a lot of the trees are just over eight metres tall, so beginning to feel like forest when you go into the plots,” says Turner.
“It will be interesting to see if potentially having these plots could mean these areas are buffered from some of the extreme temperatures associated with climate change,” he adds.
Turner believes the need to cultivate resilience to crop failure from climate change should be a key driver in adopting agroforestry strategies for oil palm: “Anecdotally, growers are very worried about replanting because of the unreliability of rainy seasons. It’s things like that which have a really tangible effect on how well these crops can be grown.”
According to Turner, it is easier to set up riparian restoration plots during re-planting, when plantation managers are more open to changing their practices – and digging tools are on hand. A large proportion of the oil palm that was planted in the
late 1980s and 1990s will be replanted over the next decade, so an opportunity to try new things has emerged.
The next phase of the EFForTS experiment is to test what happens when tree islands are established during replanting, which is being trialled at a site in Sabah. “It will take three to five years before the effect on productivity can be tested, but I think there is potential for large-scale application at the replanting stage,” agrees Zemp.
Bringing Life to The Understory
Soil-friendly strategies may also diminish reliance on chemical inputs. This has been the case at a BEFTA understory vegetation pilot project.
“We found that where you have more re-growth [in the understory] you get all kinds of benefits in terms of biodiversity and ecosystem processes, and it doesn’t seem to affect yield at all,” says Turner. “We’re very aware that if you reduce yield, that’s when you might get more areas of oil palm. What you want are productive agricultural systems that are also more sustainable.”
The understory strategy has since been adopted across 400,000 hectares of Golden Agri-Resources owned plantations, as well as the 100,000 hectares managed by collaborating smallholders.
“We are trying to transform agronomy practices and go more towards agro-ecology,” says Jean-Pierre Caliman, director of the group’s research and development arm, SMARTRI. “Soil cover is the first criteria because it is linked with the health of the soil.”
The pilot found that keeping some level of weeds increases biodiversity, which in turn helps with pest control, reducing the need for pesticides. Caliman explains this vegetation also significantly protects the soil by reducing water loss by 10% –particularly welcome during periods of lower rainfall.
Caliman is seeing wider adoption of this strategy within the industry, yet he notes some growers are reluctant to change. And smallholders tend to be simply unaware of the importance of vegetation cover for soil health. Instead, they spray herbicide across their land.
Integrating Livestock
An alternative weed-management strategy is to graze plantations with livestock. According to Badrul Azhar, a conservation biology and wildlife ecology professor at the University of Putra Malaysia, this traditional practice is rarely used in the Malaysian palm oil industry.
Azhar is leading research into the potential benefits of livestock for oil palm sustainability, such as sequestering carbon, restoring topsoil, improving biodiversity and reducing fertiliser and pesticide use.
A recent academic study found adding livestock to oil palm plantations also enhances food security through localised beef production.
This strategy is unpopular among private companies that “only want to focus on the oil palm”, says Azhar, noting concerns that cattle will compact soils, or spread a fungal disease that affects oil palm buttresses. He says these are issues that can be prevented with proper management.
Sawit Kinabalu is one of the few producers in Malaysia to have trialled the method, in its Sabah plantations. Cattle grazing is now used on 30,000 hectares, half of its total estate.
“It has to be systematically done,” says Azid Kabul, a production veterinarian who led the implementation and management of the Sawit Kinabalu trial until 2022. For example, cattle are moved using a 90-100-day rotation to manage grazing. This movement is coordinated with the estate’s overall management, to ensure it avoids harvests or replanting efforts.
“We have successfully helped the estate in reducing their use of chemical herbicides,” Kabul adds. “Instead of blanket-spraying, they just spot-spray; instead of four to five times a year, they can reduce to two times.”
Making Sustainability the Routine
Azhar believes more attention should be paid to tackling the overuse of agrochemicals and, more generally, to plantation management. He thinks sustainability best practice is currently too limited, with its focus on conserving and protecting particular patches of land.
“Not all estates have these conservation features, so it’s not sufficient at the moment,” says Azhar. “The real transformation needs to involve the routine agronomy practices, which is where the weak management is.”
Despite the growing evidence of effective sustainability strategies, scaling them across the wider industry remains a challenge. The scientific community shares its findings through its networks, conferences, and some media coverage, but Clara Zemp notes frustration: “There has not been so much interest in establishing tree islands from the industry, at least in Indonesia.”
“It’s a win-win,” she adds. “I do not see any reason why the industry would not do it.”
The EFForTS study suggests knowledge-sharing could be accelerated by incorporating agroforestry strategies (like establishing tree islands) into certification schemes, for example the Roundtable on Sustainable Palm Oil (RSPO).
To accommodate the evolution of this research, Edgar Turner suggests adding more detail to the RSPO’s principles and criteria framework on understory and river margins management.
The RSPO told Dialogue Earth it recognises the opportunity for these research developments to be included in best practice guidelines. The latest revisions to its principles and criteria framework are due to be finalised at the end of this year.
Building A Regenerative Framework
Other organisations promoting sustainable practices in palm oil are taking different approaches. The Rainforest Alliance’s regenerative coffee “scorecard”, which supplements its sustainable agriculture certification programme, has now been extended to palm oil. The assessment considers soil, biodiversity, water, crop resiliency and livelihoods.
Sustainability can also be improved by taking a landscape approach, rather than focusing on individual sites. This is one of the main principles of the UN’s Forest and Landscape Restoration Mechanism (FLRM).
WWF-Malaysia has adopted this integrated approach in restoring the riparian corridor between the Tabin and Silabukan reserves in Sabah. The NGO is collaborating with three oil palm companies (KLK Malaysia and the state-owned Sabah Softwoods and Sawit Kinabalu), as well as aligning its conservation work with the state’s conservation strategy.
“We are trying to show in Sabah that ecosystem restoration is part of a wider approach: it’s about engaging all stakeholders, including the jurisdiction that involves the government,” says Faisal Mohd Noor, who leads this WWF-Malaysia project.
The NGO is developing a guidance document for ecosystem restoration with the Sabah Forestry Department. Along with providing a guide to practitioners on high-priority restoration areas, it will establish an essential network for everybody who is contributing to these efforts. “There needs to be coordination around what others are doing, which tends to be in silos,” says Noor.
The oil palm sector has been hit hard by environmental concerns. Turner believes it is therefore further ahead than most other tropical agricultural crops “in terms of thinking about sustainability and having a framework to put that in”.
“We need to be thinking more about how we can harness ecosystem services and species found in agricultural systems,” he adds. “Lots of people are thinking about that now.”
Solidaridad, Others Synergise on Oil Palm Traceability in Nigeria
Two organisations, Solidaridad and the Sustainable Trade Organisation (IDH), say they are committed to identifying actionable solutions to the traceability gaps in Nigeria’s palm oil supply chain.
Mr Gabriel Fapojuwo, Country Representative, Solidaridad in Nigeria, spoke on Saturday, November 30, 2024, in Abuja at a policy dialogue on the National Initiatives for Sustainable and Climate-Smart Oil Palm Smallholders (NISCOPS).
The dialogue was titled “Nigeria Palm Oil Import – Export Corridor and the Traceability Gaps.’’
Fapojuwo said the dialogue was aimed at fostering collaboration among stakeholders in the oil palm sector, strengthening regulatory frameworks and upgrading infrastructure and technology in the oil palm sector.
“The dialogue also focuses on the alignment of practices in the oil palm sector in Nigeria with global market standards and ensure that smallholder farmers and local millers benefit equitably from the growth of the oil palm sector.”
Fapojuwo said the NISCOPS programme was building the capacity of smallholder oil palm farmers to bridge the demand and supply gaps.
“The first phase of the programme started in 2019 ended in 2023; we have started the second phase, and the target is to improve the yield and income of smallholder farmers through climate-smart agriculture and sustainable land use.
“We are not stopping at improving the yield; we have to prepare the Nigeria smallholder farmers for the requirements of international markets; hence, we are focusing on issues around traceability of the product,” Fapojuwo said.
Kenechukwu Onukwube, Programme Manager, Oil Palm, Solidaridad in Nigeria, said that the country’s palm oil sector, a vital contributor to its agricultural economy, faced significant challenges in meeting traceability and sustainability standards.
Onukwube said that the sector faced challenges in the context of global regulations like the European Union (EU) deforestation-free supply chain policy.
Oil palm plantation
He said that, in spite of the country’s potential as a major palm oil producer, infrastructural deficiencies, limited digital adoption, weak policy enforcement and fragmented supply chains hindered effective traceability.
According to him, the challenges disproportionately affect smallholder farmers and local millers, limiting their access to lucrative export markets while risking non-compliance with global standards.
“Public-private collaboration and capacity-building initiatives are needed to address these systemic issues and create an inclusive, sustainable palm oil sector,’’ he said.
Mr Abraham Ogwu, Senior Programme Manager, IDH, said integrated approach was required to address the nation’s palm oil traceability gaps.
Ogwu identified such approach as the combination of regulatory reforms, technological advancement and collaborative efforts.
“Public and private sector stakeholders must work together to ensure that smallholder farmers and local millers benefit from the opportunities within the global palm oil market.
“This policy dialogue underscores the urgency of creating a resilient, inclusive and sustainable palm oil sector in Nigeria,” Abraham said.
Participants at the forum included the ministries of agriculture and environment at the federal and state levels and the Nigeria Institute for Oil Palm Research (NIFOR).
Other participants are Plantation Owners Forum of Nigeria (POFON), Oil Palm Growers Association of Nigeria (OPGAN), academics and private investors.
Solidaridad is an international CSO with the mandate of developing solutions to make communities more resilient and fostering more sustainable supply chains.
IDH is an international organisation that brings together public and private stakeholders to make global agricultural markets more sustainable and more inclusive.
IDH collaborates with organisations to develop solutions to critical challenges in global value chains, such as climate change, unfair working conditions and wages, unequal value distribution and gender inequality.
Can Artificial Intelligence Help Palm Oil in Colombia?
Researchers in Colombia are using deep learning models to predict the ripeness of oil palm fruit, helping to increase efficiency.
Colombia is the largest palm oil producer in the Americas and ranks fourth overall. Oil palm is associated worldwide with deforestation, but in Colombia a lot of work has been done to ensure that palm plantations are free of deforestation with a zero-deforestation agreement (ZDA) signed in 2017.
Isis Bonet Cruz, a Cuban researcher and professor at the La Universidad EIA in Antioquia, Colombia, says that her project aims to lift the productivity of existing plantations without the need to expand into new areas, helping to conserve forests and biodiversity.
“In the project, photos were collected from videos of the processing area, the fruits were classified by experts and a deep learning model was trained to classify the fruits in real time, determining their ripeness and quality,” she says, adding that the model classifies the fruits into green, ripe and overripe.
Bonet explains that this model is used in the production area both to be able to classify the harvested fruits and have final harvest statistics, and to be able to control the quality of fruits from other suppliers, ensuring greater efficiency in oil production.
“The greatest impact will probably be seen when it is extended to the harvesting area, because by predicting more accurately the optimal time for harvesting, the unnecessary use of water and fertilizers can be reduced, since resources will be applied only when they are really necessary,” she says.
Bonet explains that this model can be easily extended to the harvesting area, where videos and photos of the fruit still on the tree should be collected, so that field workers can use their cell phones to help them with the harvesting process.
This project is an international collaboration supported by the Distinguished International Associates program at the UK’s Royal Academy of Engineering.
Classifying oil palm harvest via video - Isis Bonet
Villavicencio, Colombia - January 13: Plantation of Palm Trees for Palm Oil Production on January 13, 2017 in Villavicencio, Colombia. (Photo by Michael Gottschalk/Photothek via Getty Images)
From Cuba to Colombia
Bonet was born in Cuba, where she did all her studies, from undergraduate to doctorate, at the Universidad Central de las Villas, Santa Clara, Cuba and went on to work there as a professor before moving to Colombia in 2012.
“Since graduated, I have been doing research in the area of Artificial Intelligence and I have always liked research, discovering things,” she says, “I think that working at a university since I graduated has also made it possible for me to strengthen my research.”
Bonet explains that the countries of the Global South continue to face the most severe effects of climate change, such as extreme weather events and related diseases.
“In the South, solutions developed in the North are often not transferable, because the needs and challenges differ greatly in terms of health, agriculture and climate change,” she says, “Therefore, for local problems, adapted models and solutions must be developed.”
Bonet explains that the best developments can be achieved with international collaboration, which can encourage the sharing of knowledge and resources, which can lead to significant advances in science and technology.
“The Global South’s leadership in addressing climate change and other challenges offers valuable experiences and solutions that can be adopted globally, fostering an exchange of knowledge that benefits all regions,” she says.
Other Fruits of The Palm
Another reseacher working with pal,s in Colombia is Alberto Gomez Mejia, a botanist and founder of the Quindio Botanical Garden.
Gomez explains that Colombia has a tenth of the world’s palm species and that it is key to preserve two key food species: Taparo palm (Attalea amygdalina) and Chontaduro (Bactris gasipaes).
Colombia has the third highest number of palms of any country, with around 260 species — but 20% of Colombian species are in serious danger of extinction.
Of these Taparo, whose seeds are used to make sweets and Chontaduro or peach palm (a fruit eaten with either honey or a lemon and salt mix) are culturally and economically important, especially in the central and southern regions of the country.
Gomez explains that his team aims to establish a gene bank to protect the palms’ genetic diversity, reintroduce some examples into wild areas and develop schemes for sustainable commercial plantations.
“We have the largest collection of palms in Colombia,” he says, “With new resources, we are going to work with two native food palms that are in danger of extinction.”
Isis Bonet Cruz, professor and researcher at EIA University in Colombia.
DPMO With New Technology Seen More Profitable Than CPO?
The technology of degummed palm mesocarp oil (DPMO) is a new processing technology in palm oil industry, which is considered more ecofriendly, efficient and profitable in producing the DPMO instead of crude palm oil (CPO).
The Indonesian Vegetable Industries Association (GIMNI) Executive Director Sahat Sinaga said that the new technology reduces carbon emission in the processing of palm oil. “Until now, the palm oil industries have used the method of wet process or sterilization, which causes high carbon emission. I changed it to a dry process method, pasteurization with low carbon emission.”
“With that I propose the application of dry process method to process the palm fresh fruit bunches (FFB) into DPMO, instead of CPO. The DPMO has better quality than the crude palm oil. Crude is identical with bad one. It’s been 100 years of no change in technology,” Sahat said in Jakarta on Wednesday (31/7/2024).
Besides its lower carbon emission, the price of DPMO will be higher than the CPO. The price of DPMO is higher by around US$10/ton compared to CPO. It means that the price of FFB bought from smallholders will be higher.
involve and how they are involved. It’s an eye-opener and it really amazes me. Basically, it’s a very positive one,” said Erja.
Source: www.gapki.id
File - Workers are seen at an oil palm nursery in Padang, West Sumatra, on February 26, 2021. ANTARA FOTO/Muhammad Arif Pribadi/ Lmo/hp/pri
Indonesia Adopts DNA Tracing for Palm Oil Seed Quality
The Ministry of Agriculture is implementing DNA tracing technology to identify parent palm oil trees and preserve their seeds for planting, aiming to sustain productivity in the national palm oil industry.
Deputy Minister of Agriculture Sudaryono said on Thursday that this technology is used before palm oil seeds are sown, enabling industry players to assess the quality of the resulting fruit.
“Before planting, seeds are first inspected to verify their quality,” he explained.
He added that through this technology, the ministry will also establish standardization and certification for high-quality palm oil seeds in partnership with a laboratory in Medan, North Sumatra.
This initiative is part of research and development efforts to produce palm oil varieties that are disease-resistant and highyielding.
“Although standardization and certification are in place, counterfeit seeds are still being sold with false quality claims,” he noted.
Sudaryono mentioned that the ministry will collaborate with the Indonesian Palm Oil Entrepreneurs Association (Gapki) to ensure effective implementation of this policy in the field.
The ministry also plans to improve palm oil quality at the farmer level by providing technical assistance and training to support smallholder productivity.
In 2023, Indonesia’s crude palm oil (CPO) production reached 47.08 million tons, with 23.98 million tons exported.
Sudaryono emphasized that the palm oil industry is not only a significant source of national revenue but also provides employment to more than 16 million people.
Innovating for Impact: KROHNE’s Smart Solutions in Palm Oil Process Instrumentation
Interview with Yannick Farine,
Industry Specialist Vegetable Oils, KROHNE
1. Can you provide an overview of KROHNE’s core business areas and global presence?
The KROHNE Group is a global manufacturer and provider of process instrumentation, measurement solutions, and services. We operate in various industries such as food & beverage, chemical, oil & gas, marine, nuclear, water & wastewater and others. KROHNE offers local contacts for instrumentation projects in over 100 countries. When establishing local subsidiaries, we have been following the principle of "local business, local people". This means we rely on local people, also
in management, and build up local engineering and application know-how to provide the best service for our customers.
In Malaysia itself, we support a team with over 100+ people. While mainly focused on the oil & gas industry, we have added dedicated palm oil experts since the recent 3 years with its local expertise. KROHNE Malaysia also serves as a hub for solutions, such as metering skids, pipe leak detection, and recently automatic tank gauging.
2. How does KROHNE differentiate itself in the highly competitive field of industrial process instrumentation?
KROHNE is an innovative technology supplier with unique technology for challenging applications. We don't think 'products', but rather 'solutions'. This has led us to become one of the international suppliers of process instrumentation. This spirit of creativity also sets forth in the palm oil industry, where KROHNE can offer solutions to challenging applications such as the high degree of wear & tear in crude oils, settling of impurities on equipment, dealing with high viscus by-products and entrained air during loading and unloading applications to give a few examples.
3. What are some of the latest technological innovations KROHNE has introduced in the field of flow measurement and process instrumentation?
Our latest major innovation is the introduction of the FOCUS-ON. The world's first smart metering valve developed for Industry 4.0 and a joint venture between SAMSON and KROHNE.
FOCUS is a valve, a flowmeter, a pressure meter, and a temperature meter all into one single device. What makes it unique is that the smart metering valve is completely selfregulating. With an internal PID controller, the response times are much quicker than what one would find in a classic regulating loop.
When it comes to edible oils, the FOCUS books the most successes in energy optimization and loading applications. Basically, everywhere where you need a quick responsetime. Think of heat exchangers for example. In fact, the very first prototype of FOCUS-1 was delivered to an edible oil refinery on the application of a heat exchanger.
4. How does KROHNE ensure the reliability and accuracy of its instruments in challenging industrial environments?
KROHNE can offer solutions to challenging measuring applications in the palm oil industry. We focus on applications where we can provide more reliable technology and extend their lifetime. This approach aims to reduce maintenance costs, enhance reliability, and lower overall operational expenditure (OPEX). A good example of this is wear & tear in crude palm oil. Where crude palm oil can 'sandblast' the current bent tube mass flowmeters being used, resulting in a shorter lifetime and frequent replacement.
Instead, we offer single straight tube mass flowmeters that are less prone to abrasive damages thanks to the full-bore design. Another example would be the settling of impurities on process equipment. Think of impurities on a vibrating fork, for example, where vibrating forks often require cleaning to avoid false alarms. Instead, we work with capacitance level switches that are programmable and so able to distinguish between air, medium, and impurities as they measure the intensity of the signal instead of solely relying on point detection.
5. What trends are you seeing in the palm oil industry that are influencing the development of process instrumentation?
The rapid shift towards Industry 4.0 and digitalization. Modern palm oil companies today are looking into different ways of getting the most out of your process equipment. A
flowmeter can do more than just give you the flow but also gives you a set of wide smart diagnostic functions, such as precise real-time density measurement including concentration, purity and air entrainment. Thanks to our entrained gas management, which is a standard feature on all our mass flowmeters, our mass flowmeters can operate with a wide degree of entrained air presence.
The mass flowmeter will not just keep operating, but also give you a signal that entrained air is detected and how much entrained air is measured. To make it easier to read out these smart diagnostic functions, companies are upgrading towards digital communication protocols such as Profinet and the latest Ethernet-APL. KROHNE has answered these requests with the latest release of the OPTICHECK Built-In and the development of the upcoming Ethernet-APL communication protocol.
6. What challenges does KROHNE face in the current global market, and how is the company addressing them?
KROHNE looks for ways of not only reducing the OPEX cost but also reducing the CAPEX cost while maintaining high standards. We have introduced the "standard" range of equipment, the ideal middle-ground of price versus performance. Today it seems that the Coriolis mass flowmeter is the preferred flow instrument as there are few alternatives due to the challenging process conditions in palm oil production. However, these Coriolis mass flowmeters are high in cost for both CAPEX and OPEX and frankly not always necessary.
Therefore, KROHNE provides middle-ground alternatives. Something in between a high-end mass flowmeter and a lowend Variable Area flowmeter.
The middle ground includes ultrasonic flowmeters and unique capacitance EMF meters. Ultrasonic flowmeters and capacitance EMF meters boast high accuracy using a volumetric output, while having the additional benefit of no pressure drop and are highly robust. Capacitance EMF and ultrasonic flowmeters can operate for up to 25 years with little to no maintenance.
The choice of which flowmeter to use depends on what process you have and offers a reliable and mid-end alternative to the Coriolis mass flowmeter.
When you need something in between, selecting 'standard' is the way to go.
OPTISWITCH
Four Things Nigeria Can Learn from Top Palm Oil Countries
Nigeria has one of the largest land areas dedicated to oil palm cultivation globally, but it still lags in palm oil production.
According to a report by Vestance entitled, ‘Reclaiming Lost Glory: Nigeria’s Palm Oil Renaissance,’ Nigeria used to be a major producer of palm oil between the 1950s and 1960s, with states like Calabar, and Rivers State being some of the top distributors.
However, while other countries like Malaysia and Indonesia have found a way to grow the plant, becoming major exporters today, Nigeria has fallen in rank.
“The Nigerian oil palm industry stands at a crossroads, as it remains at the embryonic stage of an industry cycle, with high susceptibility to external shocks and a sustainability outlook that might deter expansionary plans for increased growth and production,” the report said.
“However, Nigeria can position itself as a responsible and competitive player in the global palm oil market by capitalising on emerging opportunities (like increasing demand and potential slow growth with national competitors), addressing sustainability concerns, and prioritising value addition,” it added.
BusinessDay has identified four things Nigeria can learn from the success stories of Malaysia and Indonesia which are top palm oil producers and flourishing in its export.
Establishment of Estate Plantation Systems
The Vestance report notes that the governments of Indonesia and Malaysia played a crucial role in boosting palm oil production in their respective countries by establishing large state-owned estate plantations.
Central organisations drove these efforts – Perusahaan N’égara Perkebunan (PNP) in Indonesia and the Federal Land Development Authority (FELDA) in Malaysia.
“These entities provided land, financing, and training to smallholder farmers, organising them into clusters around large, centrally managed estates,” the report said.
This clustering approach integrated smallholder plasma farms with larger estates, creating economies of scale, improving access to resources, and ensuring market access.
For Africa’s most populous nation to achieve similar success, it should prioritise cluster farming among the farming population.
Trade Policies and Market Reforms
Growth in palm oil production in leading countries is closely tied to effective trade policies and reforms that promote investment and development.
The Vestance report says that substantial tax incentives such as import duty exemptions on machinery, reduced tax rates on palm oil profits, and subsidies on fertilisers and pesticides, coupled with deregulated land acquisition in Indonesia, made the palm oil sector highly attractive for foreign investment.
These policies, introduced in the mid-1970s to early 1980s, attracted significant capital from the World Bank and the Asian Development Bank, dramatically increasing production and expanding cultivated land.
This should be copied by Nigeria.
Research And Development
Findings by BusinessDay reveal that Nigeria has spent N266 billion on agricultural research institutes in the last five years, yet farmers’ output remains low due to poor utilisation of research results.
The Vestance report cites Guatemala as an example of a country which employs improved palm oil varieties, developed through research and implements rigorous seedling selection processes to ensure optimal productivity.
It stresses that this focus on seedling quality is crucial for determining the success, yield, and sustainability of plantations.
Establishment Of a National Palm Oil Development Authority
The Vestance report further notes that creating a dedicated body to oversee and regulate the industry can address issues such as smuggling, counterfeiting, and quality control.
It emphasised that, “This authority could also promote sustainable and environmentally responsible practices.”
