Vol.1 No.1 january - march 2022
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Jointly Published by : Indonesia
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Ghana to Become Africa’s Top Performer In Palm Oil Production
Post-Pandemic Future Looks Bright for Palm Oil Industry
..KCP & EFB PIONEER MANUFACTURER .. .
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PALM OIL TODAY AFRICA MAGAZINE | JANUARY - MARCH 2022
PALM OIL TODAY AFRICA MAGAZINE | JANUARY - MARCH 2022
PALM OIL TODAY AFRICA MAGAZINE | JANUARY - MARCH 2022
PUBLISHERS’ MESSAGE
A VERY HAPPY NEW YEAR TO ALL OUR READERS! It seems brisk as we are now in 2022. Travelling had been restricted since 2020 and we are glad to be seeing a glimmer of light at the end of the tunnel this year KENNY YONG as we anticipate a better outlook for 2022! As the leading publisher and trade events Managing Director organizer for the palm oil industry, we are glad to be launching this inaugural edition Fireworks Trade Media Group of Palm Oil Today Africa in partnership with Zenith Media, one of Nigeria’s brightest media companies. Subscription is FREE and you could get send an online copy to your friends too by going to: www.africapalmoil.com Supported also by the National Palm Oil Produce Association of Nigeria (NPPAN), this quarterly magazine would showcase the latest news, technology insights and industry updates to the African region. It would also help educate professionals in the palm oil industry from this region enhancing their knowledge and taking the African palm oil industry to the next level! I would like to take this opportunity to thank Mr Alphonsus Inyang, National President of (NPPAN) for his dedicated support to this magazine and not forgetting my publishing partner in the African region, Mr Joseph Oru, Managing Director of Zenith Media, who had done so much to help connect us in the industry and ensuring the success of the inaugural edition. We hope that all of you would enjoy this quarter’s read and do feel free to email us: africa@fireworksbi.com should you have any interesting palm oil stories to share or simply wanting to give us more feedback. To a better 2022!!
Dear Readers,
JOSEPH ORU Managing Director Zenith Media
The world was thrown into disarray following the surge of a virus that swept through the it like a wild fire. Lockdown rules initiated by global leaders brought significant economic implications as inflation continue to rise in many parts of the world, including superpowers like the US. However, the world witnessed a glint of hope through global vaccination efforts. Now, these economic costs, crisis support policies, debates on policies along the lines of freedom of movement vis-a-vis lockdowns are all not only case-specific, but also based on the number of infections recorded daily.There continues to be hope for a downward slide in cases as some countries are easing covid-19 related restrictions. The global economy too has garnered some positive projections, even though businesses, especially small and medium-sized businesses across countries, are bound to have a very different post-pandemic experience, depending on their origin and markets of operation.
Nonetheless, the world has moved on and back to life, each country at its own gear, taking steps with great expectations. It is in this shared anticipation for great economic tidings that we have decided to shift the conversations toward a sector that is dear to the heart of Africans—the palm oil industry—a sector so important but yet, given little attention. As a publishing firm, we hope to contribute to the sector by bridging the information gaps through our publication, The African Palm Oil Magazine.This regional, quarterly magazine provides news, commentaries, expert interviews, research on Africa’s palm oil sector. It also provides significant insight into the region’s oil market, and latest equipment and technologies. Africa Palm Oil Magazine is the first digital magazine devoted to the palm oil industry in Africa. What defines us is right there in our name and the impulse to create an avenue for people to read, for businesses to explore opportunities and for stakeholders to share their insight about the industry. As we launch our first edition, our objective is to create a community of readers passionate about Palm Oil in Africa, who share an interest in the growth of the industry and tell stories. We are committed to bringing the best of research, stories, insight, and information. Have an amazing read as we look forward to shaping the trajectory of Africa’s palm oil industry together!
CONTENT REGIONAL NEWS 6
Ghana To Become Africa’s Top Performer In Palm Oil Production
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Cameroon Development Corporation (CDC) Is Currently Fine-Tuning Two Projects For The Construction Of Two Rubber And Palm Oil Production Plants.
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A Nigerian Oil Palm Startup Raised $4 Million to Build a “Smart” Factory
WORLD NEWS 12
Pertamina Develops Palm Oil-Based Jet Fuel to Curb Carbon Emissions
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EU s Indirect Land Use Change Approach to Palm Oil Flawed – CPOPC
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Post-Pandemic Future Looks Bright for Palm Oil Industry
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Palm Oil Production Forecast 2022 by Leading Analysts
COMMENTARY 19
Indonesia Doesn’t Pretend Palm Oil Industry Has Been Without Problems
PLANTATION NEWS 22
Ensuring Palm Oil Quality
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Malaysia Giving 100 Pct Effort on Sustainable Palm Oil
PALM OIL TODAY AFRICA MAGAZINE | JANUARY - MARCH 2022
IN THE HOT SEAT 27
Live Interview Session with Mohammad Hafezh Abdul Rahman, Chief Executive Officer (CEO) of Malaysian Palm Oil Certification Council (MPOCC), Malaysia & Dr. Kasdi Subagyono, Chairman of ISPO Secretariat, Secretary General at the Ministry of Agriculture (MoA), Indonesia
INNOVATIONS & TECHNOLOGY 30
MPOB Invents Device for FFB Loading Operation
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CNH Industrial Buys Software House Nx9 to Bolster Agriculture Business
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Selontra: Rodent Control & BASF’s Effort in Minimalizing Environmental Impact. An Exclusive Interview with Mr Hans Athaide, Msc(Hons), Professional and Specialty, Solutions ASEAN
DID YOU KNOW? 36
Red Gold: A History of Palm Oil in West Africa
PALM OIL TODAY AFRICA MAGAZINE | JANUARY - MARCH 2022
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REGIONAL NEWS
GHANA TO BECOME AFRICA’S TOP PERFORMER IN PALM OIL PRODUCTION
G
hana will displaced Ivory Coast to become the lead exporter and earner of palm oil production in West-africa for the next five years, according to Bloomberg and Fitch Solutions.
whilst also addressing the challenges of land access (attracting investment by making it easier to acquire new land), trade malpractice (especially smuggling of vegetable oils into Ghana) and sustainability.”
Ghana’s palm oil production will increase by an average of 4.4% year-on-year from 2021 to 2025, with the growth rate increasing at the end of that period. This means the nation will dislodge Ivory Coast as the regional top performer. “A number of recent establishments of both industry and government bodies to regulate and support the Ghanaian palm oil industry have improved the potential of the national sector compared with other countries in the region”, the report emphasized.
The government also recently provided support for the sector in multiple ways, which Fitch Solutions and Bloomberg believe will incentivise further investment in the coming years.
Already, the Ghana Export Promotion Authority and the Ministry of Trade are seeking to develop a palm oil surplus, from which they estimate $134 million could be earned within the next 10 years through exports. The report added that “the Oil Palm Development Association of Ghana (OPDAG) was revived in 2015, and is currently being supported by Solidaridad in a strategic plan to improve its governance and administration by 2024. OPDAG aims to increase the productivity of Ghana’s palm oil sector,
PALM OIL TODAY AFRICA MAGAZINE | JANUARY - MARCH 2022
The establishment of the Tree Crop Development Authority, aimed at improving the policies and programmes set by the government to promote the production of six tree crops, including palm oil, is also booster “Palm oil was excluded from a 50% cut in the benchmark value on imports in 2019 after OPDAG argued that the cut would negatively affect Ghanaian producers. With the New Patriotic Party (NPP) having maintained their rule during the December 2020 election, we expect these policies to continue”, it stressed. However, despite the recent developments in the Ghanaian palm oil sector, production growth will fail to meet demand growth. Also, West Africa will not become a major global supplier of palm oil in the coming years, with the top producers remaining in south East Asia.
REGIONAL NEWS
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C
ameroon - State-owned agribusiness Cameroon Development Corporation (CDC) is currently fine-tuning two projects for the construction of two rubber and palm oil production plants. This is revealed in the call for expression of interests recently issued by the company to recruit a consultant that will carry out the projects’ environmental impact assessment. According to the call, the palm oil production plant will be built in Idenau, in the Southwest, while the rubber production plant will be built in Pendamboko, in the Littoral region. The launch of the two projects proves that the agribusiness company is gradually recovering from its woes caused by the Anglophone crisis. Indeed, CDC is undoubtedly one of the companies that suffered the most from the ongoing socio-political crisis that started in late 2016 in the Anglophone regions. During the crisis, separatist militia transformed the company’s plantations into training grounds. Work was badly disrupted while processing and storage plants were simply set ablaze. Because of that insecurity, the company and its about 22,000 employees partially stopped operations, on the banana segment notably. As a result, from September 2018 to May 2020, the company, which was previously the second-largest banana exporter in Cameroon, simply disappeared from the list of Cameroonian banana exporters.
Its performance since June 2020 when it returned to the banana market demonstrates that it has not fully recovered from the fallouts of those attacks. For instance, in April 2021, it exported 1,354 tons of banana (according to the Banana association ASSOBACAM), which is significantly below the 9,467.5 tons of banana it used to export monthly. Nevertheless, the company’s performance could increase tenfold in the coming months should its plan to develop 520 hectares of banana plantations this year come to fruition.
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REGIONAL NEWS
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REGIONAL NEWS
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WORLD NEWS
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WORLD NEWS
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WORLD NEWS
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WORLD NEWS
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WORLD NEWS
CPOPC’s logo
FOUR COUNTRIES SET TO JOIN CPOPC AS FULL MEMBERS IN MAY 2022, SAYS EXECUTIVE DIRECTOR
J
AKARTA: Colombia, Ghana, Honduras, and Papua New Guinea are set to become full members of the Council of Palm Oil Producing Countries (CPOPC) by May next year amid growing claims that palm oil negatively impacts the environment. These countries will automatically become full members once they ratify the CPOPC Charter and the Protocol to Amend the Charter, according to CPOPC’s executive director Tan Sri Dr Yusof Basiron. “I expect within six months they should be able to rectify,” he told Bernama. He said the new members will strengthen the collective voice to protest about the European Union’s unfair treatment of the industry. “By having them as members of CPOPC, the voice is bigger and, hopefully, more impactful,” said Yusof, who was in Jakarta, Indonesia for the ninth Ministerial Meeting of CPOPC held on Saturday. The meeting was co-chaired by Malaysian Plantation Industries and Commodities Minister Datuk Zuraida Kamaruddin and her Indonesian counterpart Airlangga Hartanto. It was also attended virtually by officials from Colombia, Ghana, Honduras, and Papua New Guinea in their capacities as observer countries. Yusof said the observer countries would do their best to speed up the ratification process as the last steps before being admitted as full members. Colombia, Honduras, and Papua New Guinea emphasised the importance of working together to promote common interests and defend the industry against persistent negative sentiments and allegations.
PALM OIL TODAY AFRICA MAGAZINE | JANUARY - MARCH 2022
Yusof elaborated that Honduras stressed that producing countries had to demand fairer treatment for sustainably produced palm oil. Meanwhile, Papua New Guinea reiterated that the producers should have a united voice on sustainability issues, and Colombia supported the promotional campaigns, research, and studies. “Malaysia and Indonesia reiterated their commitment to ensuring a high and attractive price in 2022 through various measures and coordinated actions at the CPOPC level,” he said. The council’s priorities to be implemented soon include membership expansion, acceptance of the global framework for sustainable palm oil, and a global multi-stakeholder forum. “CPOPC with the cooperation of Indonesia, during the presidency of the country at the Group of 20 (G20) meetings, will leverage to promote sustainable palm oil,” Yusof said. Indonesia has agreed to once again host the 10th Ministerial Meeting next year. The largest economy in Southeast Asia kicked off its yearlong G20 presidency on Dec 1, 2021.
COMMENTARY
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PALM OIL TODAY AFRICA MAGAZINE | JANUARY - MARCH 2022
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COMMENTARY
The above comment and opinions in the article are the author’s own and do not necessarily represent Palm Oil Today Africa Magazine’s view
PALM OIL TODAY AFRICA MAGAZINE | JANUARY - MARCH 2022
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PLANTATION NEWS
PALM OIL TODAY AFRICA MAGAZINE | JANUARY - MARCH 2022
PLANTATION NEWS
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The above comment and opinions in the article are the author’s own and do not necessarily represent Palm Oil Today Africa Magazine’s view
PALM OIL TODAY AFRICA MAGAZINE | JANUARY - MARCH 2022
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PLANTATION NEWS
PALM OIL TODAY AFRICA MAGAZINE | JANUARY - MARCH 2022
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PLANTATION NEWS
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IN THE HOT SEAT
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IN THE HOT SEAT
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IN THE HOT SEAT
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PALM OIL TODAY AFRICAAFRICA TODAY MAGAZINE | JANUARY - MARCH 2022
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INNOVATIONS & TECHNOLOGY
MPOB INVENTS DEVICE FOR FFB LOADING OPERATION However, most of small size in-field transporters usually drop their loads on the ground and later manually transferred into a bin/trailer. Multiple handlings of FFB will increase the overall time taken and lower the quality of oil. The workers also need to repeatedly lift the loads above over their shoulders and hence they are prone to fatigue when handling big bunches.
The device can assist workers to load fresh fruit bunches
B
ANGI, Malaysia – A group of researchers at the Malaysian Palm Oil Board (MPOB) led by Mohd Ramdhan Mohd Khalid have invented a technology which can assist oil palm plantation workers to load fresh fruit bunches (FFB) in their plantations. The technology, in the form of a mobile lifter device to assist FFB loading operation was launched at the MPOB Transfer of Technology Seminar and Exhibition 2021. It comprises a simple chassis design and hydraulic system to receive loads from a small in-field transporter. The hydraulic power pack is powered by 24V battery. With a single press of a switch button, the device will slowly lift the bucket. It is able to lift up approximately 400 kg of loads. The device is also easy to be attached or detached for towing purposes. “Based on a study, the device is 35% faster compared to the manual loading. Hence, it will result in a significant increase of productivity for infield FFB evacuation activities. Plantations can get better oil quality as the technology can reduce multiple handlings of FFB,” said Director-General of MPOB Dr. Ahmad Parveez Hj Ghulam Kadir. Research on this project started in 2017 and the technology has been offered for commercialisation as it is more practical and increase productivity in oil palm plantations. The bin system which is currently used in the oil palm plantations has given significant impacts for efficient FFB collection and evacuation in plantations. This system involves the integration of bin with Mini-tractor Grabber with high lift trailer.
PALM OIL TODAY AFRICA MAGAZINE | JANUARY - MARCH 2022
“This technology can lessen the burden of oil palm plantation workers and reduce the energy required to load the FFB. Hence, with the current labour shortage, this technology can attract more locals to work in plantations. Most importantly, it can promote green technology as it is battery powered,” he said. The technology has attracted one local company for commercialisation. MPOB is currently in the process of transferring the technology through a licensing agreement. The involvement of industry and local companies in the commercialisation of plantation machinery technologies developed by MPOB will increase farm mechanisation practices, especially for oil palm harvesting and transportation, said Dr. Ahmad Parveez.
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INNOVATIONS & TECHNOLOGY
CNH Boosts its Digital Innovations
CNH INDUSTRIAL BUYS SOFTWARE HOUSE NX9 TO BOLSTER AGRICULTURE BUSINESS
M
ILAN : Vehicle maker CNH Industrial has bought software engineering firm NX9, it said on Thursday, in a further step to boost digital innovation in its agricultural division as it prepares to spin off its truck, bus and engine operations. U.S.-based NX9 is a small software house specializing in so-called ‘ISOBUS’ technology for agricultural equipment, an industry-standard communication protocol which allows machines and implements to talk to each other, CNH said in a statement. No financial details of the deal were disclosed. The investment builds upon the company’s strategic effort “to more efficiently innovate and develop products in the precision agriculture space”, CNH Industrial said. The Italian-American group, which is controlled by Exor, the holding company of Italy’s Agnelli family, will complete on Jan. 3 a plan to spin off its truck and bus units and its FPT engine division and list them under the Iveco Group name.
PALM OIL TODAY AFRICA MAGAZINE | JANUARY - MARCH 2022
After the spin-off, CNH - the world’s second largest agricultural equipment maker after Deere & Co, operating under the New Holland, Case IH and Steyr brands will focus on its agriculture machine and construction equipment businesses. Earlier this year the group struck a US$2.1 billion deal to buy Raven Industries to boost its precision agriculture and autonomy operations. Last month it entered into a multi-year licensing agreement for electrification technologies with Monarch Tractor, a U.S. company focused on fully electric autonomous tractors.
INNOVATIONS & TECHNOLOGY
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Hans Athaide, Msc(Hons), Professional and Specialty, Solutions ASEAN A 21 year veteran of the industry, Hans has previously held positions in research and development and regulatory affairs prior to assuming a commercial role He is currently the Business Manager of the Professional and Specialty Solutions business in ASEAN, which includes Oil Palm, Forestry, Professional Pest Control, Public Health, Turf and Ornamentals
BASF supports the Roundtable of Sustainable Palm Oil (RSPO) and market transformation towards a certified product. Do share with us BASF’s progress in this aspect. In 2021, we published our fifth progress report the BASF Palm Progress Report for greater transparency in the value chain. Based on our voluntary commitment to sustainably source palm oil products, we purchased 227,213 metric tons of certified palm kernel oil and palm oil in 2020. This represents 100% of our total volume (completely/100%) as RSPO certified. BASF also continues to drive forward the RSPO supply chain certification of our sites for cosmetic ingredients. In 2020, 25 production sites worldwide were RSPO certified. At the same time, we will step up our efforts to improve transparency and traceability in the supply chain. We can trace almost 95 of our overall oil palm exposure back to the oil mill level in 2020 - totaling 441.107 metric tons. On top of these achievements, BASF published and enhanced Palm Sourcing Policy as well as our Forest Positioning. In 2020, BASF also participated for the first time in CDP Forest, which resulted in A-.
Selontra contains cholecalciferol in a highly palatable bait matrix that can control rats and mice. What was the main driving force behind this innovation? And how long did BASF take to come out with such a formulation? Selontra is a result of more than a decade of research and development. Our driving force was a clear market need for an innovative, palatable and effective bait that did not rely on anticoagulants given their many disadvantages. After screening and testing over 1,200 different possible candidates over 10 years, cholecalciferol was identified as the best candidate for a new rodenticide active ingredient as it offered a unique mode of action (hypercalcemia), short time to death, and reduced environmental impact. However, a highly palatable bait matrix was required to transform cholecalciferol into an effective rodenticide bait. It took a team of biologists and formulation chemists three years to develop the right formulation for Selontra. But the result speaks for itself.
PALM OIL TODAY AFRICA MAGAZINE | JANUARY - MARCH 2022
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INNOVATIONS & TECHNOLOGY
Could you share with us some of the users of Selontra in this region for the palm oil industry? While we can’t share any names due to customer privacy, several large plantation operators have successfully integrated Selontra into their rodent management program with excellent results.
Describe ‘Speed Baiting’, which is one of the unique features of Selontra. How does it differ from other products of rodenticides? Selontra’s extremely high palatability and fast stop-feeding effect mean that plantation mangers can control even large rodent populations within 7 days with just a single application of 1 bait block per tree (though in cases of very high infestations, an additional application may be needed). This means that Selontra can control infestations in as little as 1 - 2 applications. In comparison, other rodenticides often require 4-8 applications to get effective control resulting in a need for additional bait and labor, and more damage of oil palm fruit due to slower control of the infestation. With the unique chemistry and palatability of Selontra, plantations can reduce the amount of bait and the number of applications needed to control rodent infestations, which saves valuable time and money and reduces yield loss. Selontra has minimal impact on non-targets, especially barn owls that are natural predators of rodents. This makes it aligned with the RSPO principles of Integrated Rodent Pest Management using natural predators of rodents.
Please share with us how BASF caters their products to a different group of clients, especially smallholders. Would they be able to benefit from this and its affordability? Selontra is available to farmers both large and small. All producers value protecting their yield from rodent damage. In addition, when you factor in labor costs/time savings and increased yield, Selontra is more cost-effective than the current anticoagulant baits used by smallholders. We’re working to help educate the market – including smallholders on how to use Selontra effectively so that they can increase their yields, reduce costs, and ultimately boost their income.
It’s not often that we see BASF involved in the palm oil industry, are there other new products lined up with regards to pest management besides Selontra as BASF makes its foray into the industry? BASF has a wide portfolio of products for the oil palm market which includes herbicides and insecticides, in addition to rodenticides like Selontra . Our main objective is to help oil palm planters produce more from their existing plantations. Our products help farmers in reducing the number of agrochemicals being applied in the environment, reduce labor costs, and protect their yield. For the future, we have a pipeline of long-lasting herbicides which have the potential to improve labor productivity and reduce applications that are planned for launch in Indonesia in the coming years.
PALM OIL TODAY AFRICA MAGAZINE | JANUARY - MARCH 2022
DID YOU KNOW?
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Igbo men in the Oil Rivers area of present-day Nigeria bring calabashes full of palm oil to sell to a European buyer, c. 1900 (Image © Jonathan Adagogo Green / The Trustees of the British Museum, CC BY NC SA)
RED GOLD:
A HISTORY OF PALM OIL IN WEST AFRICA
F
or thousands of years, the oil palm indigenous to West Africa has had an intimate relationship with humans. An explosive expansion of oil palm groves throughout western and central Africa in the wake of a dry period around 2,500 years ago enabled human migration and agricultural development; in turn, humans facilitated oil palm propagation through seed dispersal and slash-and-burn agriculture. Archaeological evidence shows that palm fruit and kernels and their oil already formed an integral part of West African diets 5,000 years ago. Oil palms were not only protected as a valuable crop, they also grew well in cleared and burned areas. Abandoned villages and farm camps often became prominent palm oil groves; even today the age and distribution of oil palms can help easily identify old settlements. With the exception of “royal” oil palm plantations, established in the 18th century for palm wine in the Kingdom of Dahomey, all of West Africa’s oil palms grew in such wild and semi-wild groves. Women and children collected loose fruits from the ground, while young men harvested fruit bunches by climbing up to the top of the palms. The fruit was then processed into palm oil by women, through a time-consuming
and labour-intensive process involving repetitively boiling and filtering the fresh fruits with water similar methods are still largely used throughout West Africa. While pure red palm oil was derived from the palm fruit’s fleshy outer mesocarp, women also, often with the help of children, cracked the palm kernels to make brown, clear palm kernel oil. Palm oil was, and remains, a key ingredient in West African cuisine, such as that of southern Nigeria: from the simple dish of boiled yam, palm oil and Kanwa salt, to Banga soup made from the mashed fruit left over during palm oil processing and many other “soups” eaten with pounded yam or garri (ground cassava). Throughout West Africa, palm oil was also used in soap making today Yoruba black Dudu-Osun soap is a trademark Nigerian brand. In Benin Kingdom, palm oil was used in street lamps and as a building material in the king’s palace walls. It also found hundreds of different ritualistic and medicinal uses, in particular as a skin ointment and a common antidote to poisons. In addition, the sap of oil palms was tapped for palm wine, and palm fronds provided material for roof thatching and brooms.
PALM OIL TODAY AFRICA MAGAZINE | JANUARY - MARCH 2022
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