Asia Palm Oil Magazine Vol 5 No 3

Vol. 5 No. 3, Oct - Dec 2016

BOOSTING

ITS POSITION IN PALM OIL FIELD

INDUSTRY NEWS

EAST KALIMANTAN TO INTEGRATE PALM OIL, CORN FIELDS

COVER STORY

INTERVIEW WITH ACADEMICIAN EMERITUS PROF. TAN SRI DATUK DR AUGUSTINE S.H. ONG, PRESIDENT OF MOSTA

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PUBLISHER FBI Publications (M) Sdn Bhd GENERAL MANAGER Charlyne Lee charlyne@fireworksbi.com PUBLICATION MANAGER Vanny Lim my@fireworksbi.com MARKETING COMMUNICATION Nur Izyan binti Dzulkifli izyandzul@fireworksbi.com CREATIVE Diong Wai Kit EDITORIAL CONSULTANTS Kenny Yong BOARD OF DIRECTORS Kenny Yong Susan Tricia Mervyn Yong CONTRIBUTORS • CHEP Pallecon Solutions (Malaysia) Sdn Bhd • eDesignPalm Consultancy Malaysia • HAUS • JCB • National Transformation Program, MPOB and MPIC • Orion Biosains Sdn Bhd FBI Publications (M) Sdn Bhd (1168942-P) W505, West Wing, Metropolitan Square, No.2 Jalan PJU 8/1, Damansara Perdana, 47820 Petaling Jaya, Selangor Tel: (+603) 7493 5947 Fax: (+603) 7493 5977 DISTRIBUTED BY: Central Paper Agencies Sdn Bhd (111330-T) 11, Jalan SS 13/3C, Subang Jaya Industrial Estate, 47500 Selangor Darul Ehsan.

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EDITOR’S MESSAGE

Time flies, we have come to the last quarter of Year 2016! FBI is happy to once again bring Asia Palm Oil Magazine to you with the objective to bridge the gap between the palm oil industries from upstream to downstream.

In This Issue We are honored to have a chance on covering an interview with Academician Emeritus Prof. Tan Sri Datuk Dr Augustine S.H. Ong, President of Malaysian Oil Scientists’ and Technologists’ Association (MOSTA). Founded in Year 1989, MOSTA is an association of scientists, technologists and other professionals involved in oils and fats science, technology and commerce. Turn to the page of “Cover Story” to understand how does this knowledgeable gentleman workout his aspiration and enthusiasm for promoting oils and fats science and technology through MOSTA, and aims to be the leading organization in the Asia-Pacific region on science and technology.

Besides, green solutions would always be a hot topic to be discussed for. In this issue, we are also glad to interview Mr. Chan Sow Keong, CEO of Green Lagoon Technology Sdn. Bhd., which is the first green technology company in ASEAN that raised fund through equity crowdfunding. Flip through “In the Hot Seat” to find out more about GLT and what are they exactly in planning with this fund raising method and how they will succeed with their outstanding business method.

Feedback We would love to hear from you! Follow us on Facebook and LinkedIn. You can also email us directly with your thoughts and critique, which I believe will help in our future improvements.

Thank you and see you again in 2017!

Chief Editor Charlyne Lee

PRINTED BY: Universe Colour Printing Sdn Bhd No 25 Jalan PBS 14/7, Taman Perindustrian Bukit Serdang, 43300 Seri Kembangan, Selangor Available at the following major bookstores and other outlets:

ANNOUNCEMENT Asia Palm Oil Magazine is now published by FBI Publications (M) Sdn Bhd. The last company Fireworks Business Information (M) Sdn Bhd is already inactive and no longer represents Asia Palm Oil Magazine or is affiliated to Fireworks Trade Media Group in any manner.

6

CONTENTS

CONTENTS ORGANIZATION NEWS 08 Sarawak Reiterates Support for MPSO

10

09 Peat Lands In Spotlight

INDUSTRY NEWS 10 East Kalimantan to Integrate Palm Oil, Corn Fields 12 Boosting Its Position in Palm Oil Field 14 Malaysia, Indonesia to Appoint Ambassador to Promote Benefits of Consuming Palm Oil Products 16 Malaysia, Indonesia Yes to More Comprehensive Trade, Investment Collaborations

INTERNATIONAL NEWS

14

18 South America & Africa Biggest Growth Risks for Palm Oil - But Upping Market Initiatives Could Curb Deforestation 20 Zodua Cries for Sime Darby 22 Malaysia Will Continue to Meet China’s Demand For Highquality Edible Oils

REFINERY NEWS 24 Put More Efforts in Research, Commercialization of Palm Downstream Products 25 Tapping The Revenue Downstream

18 32

COVER STORY 26 Interview with Academician Emeritus Prof. Tan Sri Datuk Dr Augustine S.H. Ong, President of Malaysian Oil Scientists’ and Technologists’ Association (MOSTA) 30 Procurement Corner

IN THE HOT SEAT 32 Interview with Mr. Chan Sow Keong, CEO of Green Lagoon Technology Sdn. Bhd.

ASIA PALM OIL MAGAZINE | October - December 2016

26

CONTENTS

7

40 GREEN SOLUTION 36 Biodiesel Formulation Reconsidered 38 IOI Agrees to Reparations on Breach of Sustainability Conventions 40 Problematic Peatlands Can Be Developed

TECHNOLOGY & PRODUCT NEWS

44

42 Introducing Orion Biosains Dna Testing And The Impact It Has On The Oil Palm Industry.

44 A Better Way to Move Palm Oil 45 Haus Centrifuge Decanters Set New Standards In Crude Palm Oil Processing 46 A State-Of-The-Art In Palm Oil Mill Design 48 JCB Adds Fourth Hi-Viz Model To Loadall Telehandler Range 50 JCB Unveils Next Generation 4-6 Tonne Midi Excavators

THE PLANTER’S CORNER 52 SFO to Build Palm Oil Mill in Bakong for Small-Time Planters 54 Henkel And Basf Collaborate To Make Indonesia Palm Production More Viable 56 Double Whammy For Oil Palm Planters In Indonesia

52

58 Oil Palm Planting On Peat Soil Handled Well, Says Uggah 60 Breakthrough for Small Palm Oil Growers

EVENT HIGHLIGHT 62 Oils & Fats International Congress (OFIC) 2016 64 SIMA ASEAN Thailand 2016: The Business Place For The Whole Region!

FBI IN ACTION 66 4th Oleochemicals Outlook Meet In Bali Discusses Sustainability & Challenges Faced By Industry Today 68 Sustainability Takes Center Stage at 8th ASIA Sustainable Oil Palm Summit Yogyakarta

64

70 A successful Palm Oil Exhibition and Technology. The 6th Palmex Thailand 2016 Is The Thailand’s Largest Palm Oil Event

October - December 2016 | ASIA PALM OIL MAGAZINE

8

ORGANIZATION NEWS

SARAWAK REITERATES SUPPORT FOR MPSO

Who Am I Corner Mr. Jarrod Leak Managing Director, Alfa Laval South East Asia

M

r. Jarrod Leak has been appointed as Managing Director, Alfa Laval South East Asia effective 15 August 2016. He is currently Managing Director for Alfa Laval Oceania, combining his new role in South East Asia.

Jarrod, with 17 years of experience working in the company, was based in Sydney, Australia as Managing Director Oceania for 6 years before relocating to Singapore. A graduate in Chemical Engineering and Commerce from the Sydney University by qualification, Jarrod has in-depth experience spanning Engineering (Technical), Sales and Marketing and Management during his career in Alfa Laval.

TESTIMONIAL “It is an excellent platform for equipment & tools suppliers to introduce products or services. Asia Palm Oil Magazine gives great value with its remarkable appearance in South East Asia, cradle of the palm oil industry.”

- Mr. Emre Karazli, Business Director South East Asia & Japan at CNH Industrial

O

il palm planters in Sarawak reiterated their full support for the government-driven Malaysian Sustainable Palm Oil (MSPO) certification that exemplifies the country’s commitment to balanced development of people, planet and profits.

The MSPO is said to be a reflection of a unified code of laws concerning best practices throughout the supply chain, from oil palm planting to palm oil processing.

It is modeled in line with the rules of the World Trade Organisation (WTO).

MSPO is meant to facilitate palm oil market access through the mechanism of WTO and other multilateral or bilateral agreements with buyers.

Sarawak Oil Palm Plantation Owners Association (SOPPOA) chief executive officer Sylvester Fong said members are paying attention to yields and processing to achieve higher productivity targets.

“SOPPOA has appealed to the government for more focused scientific research into low oil palm yields that may have been impacted by poor pollination,” he said.

Currently, companies in Sarawak which have already obtained the MSPO certification include Sarawak Oil Palms Bhd, Keresa Plantation Sdn Bhd, Rinwood Pelita (Mukah) Sdn Bhd and Ta Ann Holdings Bhd. Recently, Plantation Industries and Commodities Minister Datuk Seri Mah Siew Keong, during his visit to China, announced that Palm Oil Research and Technical Service Institute of Malaysia (PORTSIM) is applying for approval

ASIA PALM OIL MAGAZINE | October - December 2016

from China’s Ministry of Agriculture’s green label.

Mah reportedly said that if the Malaysian Palm Oil Board’s (MPOB) unit PORTSIM in China is able to obtain the green label, Malaysia can then raise exports for usage in China’s wide range of ready-to-serve food and beverages and personal care products.

As the palm oil custodian of the country, MPOB is pushing hard for MSPO certification to be recognised by importing countries, and to obtain endorsement of Accreditation of Certification Body (ACB) for oil palm management system along the supply chain by Standards Malaysia.

The MSPO standard which is developed along the Sustainable Agriculture Practices of balanced needs of ‘People, Planet and Profits’ can be harmonised with China’s green label requirements.

In implementing the MSPO, Malaysia hopes to restore the balance of social and economic aspects of oil palm cultivation to be on par with environmental protection.

The Sarawak government, which had also supported the MSPO certification, have repeatedly said that oil palm planting is aimed at eradicating poverty in rural areas, as it improves the living standard of the rural communities.

There are more than 300,000 oil palm smallholders contributing closed to 40 per cent to Malaysia’s palm oil production of some 19 million tonnes a year.

Source : New Straits Times

ORGANIZATION NEWS

9

PEAT LANDS IN

SPOTLIGHT

»

An oil palm plantation in Miri razed by forest fires. In Malaysia, peatlands have been utilised for agriculture, forestry and conservation of water resources.

The Sarawak Oil Palm Plantation Owners Association (Soppoa)

supports scientific studies for better

understanding of oil palm cultivation on peat soil.

I

t welcomes the 15th International Peat Congress (IPC) 2016 to be held here from Aug 15 to 19 and looks forward to fruitful discussions on issues relating to sustainable management of global peatlands.

Organised by the Malaysian Peat Society in partnership with the International Peat Society (IPS), IPC 2016 is significant as it is the first time the congress is held in South-East Asia.

conservation of water resources as well as native customary reserve lands. Rice and pineapple were the major crops for peat areas at first, with oil palm being introduced in the late 1980s.

According to Soppoa, a number of scientific research projects are being undertaken in oil palm estates in Sarawak for a better understanding of the relationship between the crop and the land.

The studies are conducted by Malaysian Palm Oil Board (MPOB), which has developed its own standard operating procedures for oil palm cultivation on peat soil, in line with the principles of IPS.

Themed “Peatlands in Harmony”, it will discuss issues related to responsible use of peatlands as well as conservation and preservation of their unique dynamics and biodiversity.

Another major institution conducting research into peat is the Tropical Peat Research Laboratory in Sarawak which seeks to produce scientific data for more comprehensive understanding of peat.

In Malaysia, peatlands have been utilised for agriculture, forestry and

“These scientific activities will be

very useful to the IPS community as new knowledge will be made available to everyone for better understanding of tropical peat which, until today is not well understood by the scientific community,” Soppoa said in a statement.

It said IPC 2016 would be an excellent platform for the global community to have a more informed understanding of tropical peat from the papers deliberated at the congress.

“This is mostly new knowledges which was recently gathered from scientific research activities conducted in a number of Soppoa members’ estates.

“With such facts and findings, the global peat community will gain further insights into tropical peat utilisation which will add to better understanding and policy formulation of peat resources globally,” Soppoa added.

Source : The Star

October - December 2016 | ASIA PALM OIL MAGAZINE

10 INDUSTRY NEWS

EAST KALIMANTAN TO INTEGRATE PALM OIL, CORN FIELDS

E

ast Kalimantan Province will integrate palm oil and corn fields. East Kalimantan Research and Development Center head Dwi Nugraho Hidayanto said the scheme could be developed to achieve food security.

According to him, palm oil and corn are most suitable to be planted in East Kalimantan.

“The integration of palm oil and corn [fields] will diversify carbohydrate intake, we should not [depend] only on rice, but also on corn and cassava as well as on other foods,” he told Bisnis. com, Sunday, August 7, 2016.

He considered that East Kalimantan palm oil plantations have a huge potential and integration of palm oil, corn field needs to be done to realize food security. “Thailand, for example, thrives on agriculture because it is focused and continues to conduct scientific study,” he said.

Therefore, Agriculture Minister Amran Sulaiman’s directive on integration of palm oil, corn fields is welcome. “However, a study needs to be made by Agriculture and Food Security Department as well as Plantation Department because its success will realize East Kalimantan food security bid,” Dwi said.

ASIA PALM OIL MAGAZINE | October - December 2016

East Kalimantan Plantation Department head Etnawati said that basically the plan for the integration of palm oil, corn field initiatied by Food Minister Amran Sulaiman is welcome and could be successful considering the region’s vast area.

“At present, East Kalimantan has over 1 million hectares of palm oil plantations. If we want to work on it, it has potential, moreover, we could partner with private sectors. We will coordinate with Plantation Department head in districts/cities to act upon the integration of palm oil, corn [fields],” Etnawati said.

Source : Tempo.co

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12 INDUSTRY NEWS

BOOSTING ITS POSITION IN PALM OIL FIELD

P

ritam Singh Agency Sdn Bhd (PSA) has bought 30 units of Mercedes-Benz 3344S 6x4 Actros prime movers, expanding its fleet to 108 trucks and strengthening its position as a leading transporter of crude palm oil and related products in peninsular Malaysia.

“The purchase underscores our commitment to deliver on our brand vision ‘Always Moving Forward’, and continuously raise the bar for the industry with state-of-the-art trucks in delivering service excellence, higher reliability and safety standards, befitting Malaysia’s status as the world’s palm oil marketplace,” said PSA founder and chairman Pritam Singh.

Since its inception in 1986, PSA’s average daily transport of crude palm oil and related products has grown multifold up to 5,000 tonnes per day. These include crude palm oil, RBD (refined, bleached and deodorised) palm oil, RBD palm

centres,” said Cycle & Carriage Bintang Bhd operations director R. Devaraju.

olein, RBD palm stearine, palm fatty acid as well as water, sludge, soap and sugar.

The Mercedes-Benz 3344S 6x4 Actros prime movers. PSA recently bought 30 units, expanding its fleet to 108 trucks.

The new Mercedes-Benz Actros 3344S prime mover, revolutionised through the introduction of ultra-modern technology to achieve a quantum leap in handling and safety, sets a new benchmark for long-distance transport.

“Cycle & Carriage Bintang has a total of 11 Autohauses spanning the west coast of peninsular Malaysia, making us the largest Mercedes-Benz dealer in Malaysia.

Of the 11 locations, four are catered for commercial vehicles after-sales service.

The four are located in Butterworth, Ipoh, Batu Caves and Johor Baru.

“Cycle & Carriage Bintang technical staff are fully trained by Mercedes-Benz Malaysia and are on hand in all our service

“Apart from our workshop facilities, we have also invested in two units of Commercial Vehicles (CV) Mobile Service units that are fully equipped with special tools and equipment to assist our CV customers.

“Each vehicle is equipped to service and repair Mercedes-Benz trucks on the spot.

“Our breakdown team and service team have been trained by MercedesBenz and are on-call 24 hours a day, seven days a week,” he added.

“We have been in this business for 30 years and our strategy has been to focus on steady growth in the palm oil industry.

“We have come to a pivotal point to take PSA to the next level, to firmly establish PSA as an industry leader specialising in the transport delivery of crude palm oil and related products,” said PSA director Gulshanjit Kaur.

Source : The Star

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WARNING NOTICE

Notification of Patented Rights on an Apparatus for Sterilizing Oil Palm Fruit THE TRADE AND PUBLIC are hereby informed that MINSEC ENGINEERING SERVICES SDN. BHD. (149833-M)(“MINSEC”) is the owner of Malaysian Patent No. MY-150040-A and Thailand Patent No. TH 43656 (“said MY and TH patents”) in respect of an apparatus for sterilizing oil palm fruit entitled: Apparatus for Use in Oil Palm Extraction. The said apparatus for sterilizing oil palm fruit is illustrated in the Figure 1 of the said MY and TH patents as following:

MINSEC is committed to enforce its Intellectual Property Rights in Malaysia and Thailand; and will not tolerate any infringement on the said MY and TH patents. MINSEC will enforce in full spectrum of the Intellectual Property Rights conferred to the said MY and TH patents.

TAKE NOTICE that MINSEC will institute legal proceedings, which may include raids on premises and/or obtaining injunction orders against any party involved in the exploitation of the patented apparatus for sterilizing oil palm fruit covered under the said MY and TH patents.

Any questions regarding the Intellectual Property Rights of MINSEC on the said MY and TH patents shall be directed to MINSEC’s Patent Agent: MIRANDAH ASIA (MALAYSIA) SDN. BHD. Suite 3B-19-3, Level 19, Block 3B, Plaza Sentral Jalan Stesen Sentral 5, 50470 Kuala Lumpur, MALAYSIA Tel: +60 3 2278 8686 Fax: +60 3 22746677

14 INDUSTRY NEWS

MALAYSIA, INDONESIA TO APPOINT AMBASSADOR TO PROMOTE BENEFITS OF CONSUMING PALM OIL PRODUCTS

M

alaysia and Indonesia plan to appoint an “Ambassador of Palm Oil” to promote the benefits of consuming palm oil products in the international market.

Minister of Plantation Industries and Commodities, Datuk Seri Mah Siew Keong, said anti-palm oil lobbying group has given a lot of misrepresentations about the edible vegetable oil.

He said producers were now facing the evolving non-tariff barriers in major importing countries.

“These include food products with ‘No Palm Oil’ labels and proposal to impose high import tax on palm oil products.

This is a form of discrimination to us,” he said.

Mah said this to reporters after co-chairing the Ministerial Meeting

of the Council of Palm Oil Producing Countries (CPOPC) with Indonesia’s Coordinating Minister of Maritime and Resources, Luhut Binsar Panjaitan, here Tuesday.

Luhut Binsar said the ambassador must be a person who was influential and has a good image to represent the countries in promoting the palm oil products.

“We have some names but we like to discuss in detail with Datuk Seri (Mah),” he said.

He said the two countries also agreed to cooperate in promoting the use of biodiesel in other countries especially in China.

“China is looking to overcome the environmental problems and we are trying to convince the Chinese government that B5 or B10 biodiesel can bring some good impacts,” he said.

The B5 or B10 biodiesel are a blend of five-10 per cent palm methyl ester

ASIA PALM OIL MAGAZINE | October - December 2016

and 90-95 per cent regular diesel.

On the meeting, Mah said, both countries agreed to contribute US$5 million (US$1 = RM4.05) each initially to the operate the CPOPC secretariat.

“The ministers also agreed that CPOPC secretariat organises ministerial missions to major importing countries, including European Union, to address concerns on palm oil from its nutritional and developmental perspestives,” he said.

Mah said eight palm oil producing countries – Thailand, Nigeria, Colombia, Papua New Guinea, Ivory Coast, Honduras, Guatemala and Brazil – were interested to join the CPOPC. “The establishment of CPOPC is expected to further strengthen cooperation and collaboration among palm oil producing countries and address evolving issues related to palm oil,” he said.

Source : Bernama

16 INDUSTRY NEWS

MALAYSIA, INDONESIA YES TO MORE COMPREHENSIVE TRADE, INVESTMENT COLLABORATIONS

P

rime Minister Datuk Seri Najib Abdul Razak’s presence at the just-concluded back-to-back meetings with Indonesian President Joko Widodo, as well as other heads of state here, is timely in view of the excellent progress in bilateral relations and current developments in the region and the global fora.

The discussions between both Najib and Widodo, fondly known as Jokowi, would definitely further strengthen Malaysia’s and Indonesia’s commitments towards a more comprehensive collaborations in trade and investment.

Thus, it is equally important for Malaysia and Indonesia not to let any petty issues raised by certain quarters to sour ties between them but instead further work to strengthen the alreadyclosed bilateral ties.

It is clear that relations between the two nations are unique and vital as the people of both countries are like one big family who share the same history, border, language and culture.

And these similarities should be an important factor to strengthen unity and cooperation between both countries.

Both countries shared the view that bilateral ties should be nurtured, encouraged and made more relevant in tandem with the local and international environment.

Malaysia and Indonesia had set a bilateral target of advancing trade to as much as US$30 billion by 2015, but it could not be reached due the unfavourable economic scenario.

To this end, during the 11th Malaysia-Indonesia Annual Consultation, both leaders welcomed the outcome of the 14th Meeting of the Joint Commission for Bilateral Cooperation (JCBC), which was held in Kuala Lumpur in October 2015.

In terms of trade, Indonesia is Malaysia’s seventh largest trading partner and the third largest country among Asean members, with total bilateral trade of RM60.16 billion in 2015.

The JCBC has been an effective mechanism to review the state of bilateral relations and further explore new potential areas of cooperation for the continued welfare of the people of both countries.

“Both leaders underscored the commitment to further strengthen bilateral relations and cooperation, as well as to intensify efforts in addressing the challenges in the region,” said Najib, who is also Finance Minister, in a joint statement released after the annual consultation.

He said relevant officials had been tasked to further seek ways and means to achieve the bilateral trade target of US$30 billion (RM121 billion) soon.

ASIA PALM OIL MAGAZINE | October - December 2016

Both leaders have also encouraged the Indonesia-Malaysia Business Council to continue its active contribution in identifying and enhancing investment in new potential sectors.

Meanwhi le, recognisin g th e enormous potentials of the global halal trade and industry and opportunities it could bring to the private sectors, Indonesia took note of Malaysia’s proposal on the basis of reciprocity to simplify the halal certification process between the two countries.

On palm oil, the leaders hailed the strengthening of cooperation among palm oil-growing countries.

They encouraged the Council of Palm Oil Producing Countries

INDUSTRY NEWS 17 secretariat here to plan and implement comprehensive programmes to promote the image of palm oil globally.

The two countries also witnessed the signing of a bilateral agreement between Bank Negara Malaysia and the Financial Services Authority of Indonesia under the Asean Banking Integration Framework.

Through this agreement, Najib hoped the financial services between the two countries would grow in a more efficient and systematic manner.

On investment, Najib thanked the Indonesian government for the opportunities given to Malaysian g o ve rnm e nt-linked c ompanies (GLCs) to participate in the republic’s infrastructure projects.

He said Jokowi was confident in the GLCs’ abilities to shoulder their tasks in terms of building infrastructure projects.

Hence, Najib said, there was a possibility that Malaysian companies could be considered for other projects in Indonesia soon.

He cited the Cikopo-Palimanan Toll Highway by PLUS Expressways International Bhd, which was opened

by Jokowi recently, as one of them.

This was further attested to with the signing of a memorandum of understanding by Sime Darby Bhd, I&P Group Sdn Bhd and SP Setia (Indonesia) Sdn Bhd with PT Hanson International Tbk to jointly develop an affordable housing project, comprising 40,000 units, with a gross development value of RM3.5 billion.

“These are among the examples of Malaysia’s contributions to the infrastructure development of Indonesia which is the main agenda under Jokowi’s leadership and it was given to us based on good relations between the two countries”, said Najib.

it had been deferred for too long, he said.

Both leaders also took this valuable meeting opportunity to exchange views on regional and global issues, paying particular attention to the Asean Community 2015 and the work towards Asean Vision 2025.

They exchanged views on, among others, the increasing of security challenges and threats in the region, South China Sea, radicalisation and other global issues.

The prime minister was in Jakarta to attend the 11th Malaysia-Indonesia Annual Consultation in Aug 1, followed by the three-day 12th World Islamic Economic Forum from 2-4 Aug, 2016.

Najib said besides issues on economic cooperation, other matters being discussed in the consultation included Indonesian workers, maritime, trans-boundary haze pollution.

Meanwhile, the next 12th Annual Consultation will be held in Malaysia next year, at at date to be mutuallyagreed upon and communicated through diplomatic channels.

Another was to settle the issue of Sulawesi Sea waters completely as

Source : Bernama

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ASIA PALM OIL MAGAZINE

18 INTERNATIONAL NEWS

SOUTH AMERICA & AFRICA BIGGEST GROWTH RISKS FOR PALM OIL

BUT UPPING MARKET INITIATIVES COULD CURB DEFORESTATION

V

oluntary market initiatives from the largest buyers and sellers of palm oil could help curb deforestation linked to the crop, researchers say, noting South America and Africa are most at risk of future damage.

These conclusions were drawn after analysing forests recently cleared to make way for oil palm plantations, as well as modelling areas likely to be cleared in the future.

“Almost all oil palm grows in areas that were once tropical moist forests, some of them quite recently,” said the team, led by Varsha Vijay of Duke University in the US. They warned: “Today, consumer pressure is pushing companies toward deforestation-free sources of palm oil.

“Government regulation and voluntary market interventions can help incentivise the expansion of oil palm plantations in ways that protect biodiversity-rich ecosystems.”

The study follows a host of other research on oil palm-led deforestation, including one stressing oil palm deforestation damages 11 out of 14 functions of a healthy ecosystem.

Study findings: South America and Africa Researchers on the new study compiled information on oil palm plantations which have recently replaced forests in 20 countries using high-resolution imagery from Google Earth and Landsat.

The trends for deforestation were then compared to countrywide trends

ASIA PALM OIL MAGAZINE | October - December 2016

in the UN’s Food and Agricultural Organisation (FAO) data for oil palm planted area.

The team also judged which forests have high agricultural suitability for future palm development – “vulnerable forests” – and identified areas where oil palm expansion threatens biodiversity, in particular mammals and birds.

The report is one of the few to focus on global palm oil deforestation, the team said, noting most look at Indonesia and Malaysia because together they account for around 80% of palm fruit production.

“As area for expansion in this region is limited, however, future expansion of oil palm plantations is likely to occur in other areas,” Vijay and team noted.

For instance, Mesoamerica and

INTERNATIONAL NEWS 19 Africa had only 2% and 7% respectively of their oil palm plantations in areas that were forest in 1989, when the study period began due to cloud cover issues and gaps in Landsat data prior to this.

This leaves room to expand into the untouched forests.

“Despite having little plantation area currently, some countries in Latin America and Africa experienced greater percent growth during this period than did either Indonesia or Malaysia. If these growth rates continue, oil palm plantation expansion in these countries will likely have increased impacts,” the researchers said.

“The largest areas of vulnerable forest are in Africa and South America.”

Marketing initiatives Voluntary company initiatives have become more popular in recent years, with big players pledging publicly to use deforestation-free palm oil in their products.

The researchers pointed to this market pressure as a way to curb deforestation linked to palm oil plantations.

Key stakeholders have committed to end agriculture-based deforestation practises by 2020, and end deforestation completely by 2030.

More than 180 governments, companies and organisations have signed the New York Declaration on Forests (NYDF) calling for an end to deforestation for agricultural purposes such as oil palm by 2020.

The goal is to cut all deforestation (not just related to agriculture) by half in 2020 and completely by 2030.

A further 400 retailers and manufacturers have signed up to the Consumer Goods Forum , which aims to wipe out deforestation in member companies’ supply chains by 2020, the researchers noted.

include Dunkin’ Donuts, Nestlé, Danone, Kellogg’s, Unilever and Heinz, to name but a few.

However, according to the Union of Concerned Scientists (UCS) 2015 palm oil score card – rating companies based on their commitment to using palm oil which does not affect forests – there are still “too many” companies lagging behind.

Companies with no commitment to using forest-friendly palm oil included Domino’s, Wendy’s and Walgreens.

No companies selling packaged foods were found to have zero commitment to eco-friendly palm oil. Of these firms, Kraft had the lowest commitment according to the scorecard.

“UCS (The Union of Concerned Scientists) is asking consumers to tell these companies that deforestation is an unacceptable ingredient in their products,” the team said.

Source : FoodNavigator.com

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Sime Darby Offshore Engineering Sdn Bhd (214416-V) Address : Lot 16, Prestij 16, Jalan UEP, Taman Perindustrian UEP, 47600 Subang Jaya, Selangor December 2016 | ASIA PALM OIL MAGAZINE Tel : 03- 8022 9008 Fax : 03- 8022 9009 Contact : Dr Lim Daw Yuen (012-3208076)

20 INTERNATIONAL NEWS

ZODUA CRIES FOR SIME DARBY

M

alaysian oil palm company Sime Darby Plantation Incorporated in Western Liberia is under increasing pressure to expand its operations as citizens of Bomi and Grand Cape Mount counties seem impatience with calls for expansion to their areas to create desperately needed job opportunities.

of Zodua Town, Garwula District, Grand Cape Mount County. “We are appealing to government and the international community to allow the company to come to our area; we need development. The health facility is bad”, Chief Sembeh said in an interview with a team of journalists that visited the district over the weekend.

Already, it has cultivated about 10,000 hectares in both Grand Cape Mount and Bomi with palm and harvesting is currently in progress, while a US$18m mill is being installed begin processing into finished product.

He said land has identified for the company, saying, “We ourselves have more land for Sime Darby; we have land that extends to David Town.”

The women leader for Zodua Town, Madam Jenneh Moore, confirmed the comments made by the chief, noting that “We agreed as a people to give the land to Sime Darby. We don’t have safe drinking water and Sime Darby gave us few pumps. No health facility here; we have to carry pregnant women from here to Sinje for delivery and medication.”

But in the eyes of villagers, that seems enough. They want the SDPL Management to expand perhaps much sooner than later, and have already allocated land for this purpose. Chief Abdullai Sembeh, 52, is the head

Zodua is a remote town with rundown mudbrick houses and a population of over 10,000 – predominantly Muslims, and many of them are youth. “I myself here, I’m a high school graduate. We are many

The company has a 63-year concession agreement with the Government of Liberia about 220,000 hactares of land in four counties: Grand Cape Mount, Bomi, Gbarpolu and Bong, respectively.

ASIA PALM OIL MAGAZINE | October - December 2016

here but those of us who went to school want opportunities to advance ourselves”, said Melvin Dasamah, Youth Leader.

The Sime Darby Management has disclosed that when completed, the mill currently being installed will have the capacity to process about 10 tons of palm head per hour with a monthly quantity of 12,000 barrels.

Meantime, a mini-mill is on hand processing about 6,000 barrels per month, and. Management reveals that a local buyer has already begun to engage the oil for export. Chief Executive Officer Shamaruddia Abu Samah said the plantation is currently cultivating 10,000 hectares of land and looks forward to expanding in the future, if more lands are acquired from the locals.

The people of Zodua are hoping and praying that, that future spoken about, would come much sooner than later to ease some of their woes.

Source : The New Dawn Liberia

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22 INTERNATIONAL NEWS

MALAYSIA WILL CONTINUE TO MEET CHINA’S DEMAND FOR HIGH-QUALITY EDIBLE OILS

M

alaysia, a major palm oil supplier to China, will continue to offer high standard edible oil which will cater to the Chinese needs, said Plantation Industries and Commodities Minister Datuk Seri Mah Siew Keong.

He said Malaysia had invested in both financial and human capital to better understand the effects of palm oil on human health.

This was proven by the latest findings from the ‘Red Palm Oil Programme’ mounted by the Palm Oil Research and Technical Service Institute of MPOB (POTSIM) in Gansu, China, whereby 2,000 school children were given biscuits made from red palm shortening to fight Vitamin A deficiency.

“The results, from consuming palm-oil based biscuits, showed that the deficiency fell from 21.6 per cent to 6.0 per cent.

“This clearly indicated that palm oil plays a bigger role in China’s oils and fats market and we are confident that the usage of palm oil in China will continue to increase,” he said.

Mah was speaking to reporters after launching the Fifth Palm Oil Health and Nutrition Forum and Seminar on Managing Infection Control - Selecting the Right Gloves here last night.

The forum is a signature event in China which was initiated by Malaysian Palm Oil Board (MPOB) former director-general Datuk Dr Choo Yuen May. Mah added that Vitamin A deficiency was a significant public health issue in developing countries and was a major cause of blindness as well as overall mortality.

Red palm oil has been studied as a supplement and as part of food fortification to boost vitamin A levels, he said.

It is effective and served to help fortify the food supply in nations where widespread deficiency existed especially in China, where the masses were still unaware of the benefits of palm oil.

“That is the main reason why the ministry, together with the help of MPOB and Malaysian Palm Oil Council, held such forums and seminars to create awareness for the edible oil.

“We will also work closely with experts in China especially with the President of the Tianjin Nutrition Society Professor Dr Qi Yumei to help us to conduct tests and, hopefully, impart knowledge to the China government,” added Mah. Over the past 30 years, Malaysia has initiated and partnered with leading biomedical and nutritional research institutions around the globe, including China, to carry out clinical studies related to palm oil, he said.

ASIA PALM OIL MAGAZINE | October - December 2016

“Today there is a wealth of scientific evidence that supports the fact that palm oil is a wholesome and nutritious edible oil,” he added.

Mah said Malaysia would continue to provide support and improve the usage and application of palm oil in China through the work by POTSIM in Shanghai.

Malaysia has 5.64 million hectares of oil palm plantation and exported 25.3 million tonnes of palm oil and palm oil products in 2015, generating US$15.3 billion in foreign exchange earnings.

Through the income, Mah said Malaysia was able to import goods from China and help maintain a healthy bilateral trade between the two countries.

Source : Bernama

T

24 REFINERY NEWS

PUT MORE EFFORTS IN RESEARCH, COMMERCIALIZATION OF PALM DOWNSTREAM PRODUCTS

R

esearch and commercialisation of palm based downstream products should be further explored to ensure the commodities sector remains sustainable and competitive in the long run, said Minister of Plantation Industries and Commodities Datuk Seri Mah Siew Keong.

of the oleochemical industry in Malaysia, particularly the production of surfactant, oleochemicals and their derivatives.

“There should also be a strong collaboration between the government and industry to jointly counter the western anti-palm campaign which are based on discriminating allegations,” he said in a statement.

“Today, the local oleochemicals industry has a capacity of 2.75 million tonnes and the global oleochemicals market is driven by surging demand for renewable-based products and consumer preferences for sustainable solutions,” he said.

He said this during a half-day visit to KL-Kepong Oleomas Sdn Bhd plant in Pulau Indah, Port Klang to discuss the development and progress

Mah said the oleochemicals industry started in Malaysia in the early 1980s as a spin-off to the oil palm industry.

Malaysia’s export of oleochemical products in 2015 was 2.85 million tonnes valued at RM11.29 billion.

ASIA PALM OIL MAGAZINE | October - December 2016

The main products exported were fatty acids (33 per cent), fatty alcohols (20 per cent), methyl ester (17 per cent), soap noodles (16 per cent) and glycerine (13 per cent).

Examples of commercialised real life products that can be produced from oleochemicals are soap bar, cosmetics, body lotions, healthy cooking oil, detergent powder, dishwashing detergent and nutraceuticals.

The palm oil industry is targeted to contribute to RM178 billion to Malaysia’s gross national income and create 41,600 jobs by 2020.

Source : Bernama

REFINERY NEWS 25

TAPPING THE REVENUE DOWNSTREAM

M

OST small companies in the palm oil industry view the downstream sector with apprehension due to the high capital and R&D needed to establish refineries and the production of oleochemicals and oleo derivatives.

But it’s not these areas, but further downstream, in the realm of end products that SMEs should look at, says Dr Yeong Shoot Kian, head of the synthesis & product development unit of the advanced oleochemical technology division at Malaysian Palm Oil Board (MPOB) .

“Look at products that utilise palm-based oleo derivatives produced by the big companies. If you are talking about derivatives, of course, the investment is very big. But when we come to end-products that use these derivatives, we are talking about formulation and a smaller capacity.

And I think the SMEs are able to do

this,” explains Yeong.

According to Yeong, there are two categories of palm oil-based products in the downstream segment, namely, food and non-food products.

These include everyday items such as cooking oil, margarine, biscuits, detergent and cosmetic products.

“Actually, a lot of SMEs are already manufacturing palm oil products. If you see what’s in our market, a lot of the snacks and food contain palm oil as an ingredient,” adds Rosidah Radzian, MPOB director of product development and advisory services division.

“But we want to encourage them to go even further down the value chain to produce higher value-add products to increase their revenue and expand their market,” she adds For example, Rosidah explains, SMEs currently producing skincare

products could use Vitamin E derived from palm oil to enhance the nutritional quality of their existing product, which could then be marketed as an added-value item and with better margins. And this does not require drastic changes to their manufacturing operations.

MPOB is looking to support such SMEs interested in moving further down the value chain.

Under the 11th Malaysia Plan, RM280mil’s worth of grants are allocated to support palm oil downstream development in oleo derivatives, food and health-based products and clinical trials, with RM50mil being set aside specially for SMEs. For more general information and criteria, you should log on to www. mpob.gov.my. For enquiries, write to nkeagrants@mpob.gov.my.

October - December 2016 | ASIA PALM OIL MAGAZINE

26 COVER STORY

Interview with

Academician Emeritus Prof. Tan Sri Datuk Dr Augustine S.H. Ong President of Malaysian Oil Scientists’ and Technologists’ Association (MOSTA)

ORGANIZATION BACKGROUND AND HISTORY: The Malaysian Oil Scientists’ and Technologists’ Association (MOSTA) is an association of scientists, technologists and other professionals involved in oils and fats science, technology and commerce. Inaugurated on 7 September 1989, MOSTA aims at promoting and advancing oils and fats science, technology and commerce. MOSTA’s mission is to be the leading organisation in the Asia-Pacific region on science, technology, quality and trade matters in oils and fats, and other lipid associated substances.

MOSTA organizes activities to bring the latest and best on oil and fats information and practices to the members and others. There are talks, lectures, symposia, workshops and other scientific meetings presented by expert lecturers,

ASIA PALM OIL MAGAZINE | October - December 2016

which cover both upstream and downstream oils and fats issues in both the Science & Technology side as well as areas of Management, Commerce & Agriculture.

Beginning 1992, MOSTA publishes a semi-annual magazine called Malaysian Oil Science and Technology (MOST). MOST covers all aspects of oils and fats, and other lipid associated substance. It features the latest information on production and processing, engineering and technology, end-uses and application, nutrition and health, transport and storage, market trends, futures trading and others.

Moreover, the MOSTA council is elected annually at the AGM. They are responsible for planning and overseeing all of MOSTA’s activities throughout their elected term.

COVER STORY 27

»

Tan Sri Datuk Dr Augustine S.H. Ong, President of Malaysian Oil Scientists’ and Technologists’ Association (MOSTA).

INTERVIEW QUESTIONS:

1

Briefly share with us your background prior to joining Malaysian Oil Scientists’ and Technologists’ Association (MOSTA) ?

I founded MOSTA in year 1989. Prior to MOSTA, I was the director general of Palm Oil Research Institute of Malaysia (PORIM). There are a total 17 types of oils in the world, such as palm oil, coconut oil, soy bean oil, olive oil, rape seed oil and so on. Palm oil and lauric oil form major part of the oil, where the production quantities are as high as soy bean oil. During those days, Malaysia, Philippines and Indonesia are major producers of edible oil in the world. American Oil Chemist Society (AOCS) came over to organize conference for palm oil, palm kernel oil and lauric oil. However my personal feel was we as the major producers of these oils, we should take charge of the conference organising. Thus, I started the formation of MOSTA before my retirement from PORIM.

2

What is the important role of MOSTA in Malaysia palm oil industry?

Our main role is to cater welfare of the people who work for palm oil industry, particularly the professionals such as chemists, engineers, economists, marketing, and finance personnel. We conduct trainings, workshops, seminars, and conferences to keep the whole palm oil industry players updated. Besides palm oil there are also different kinds of oils in the world such as rape seed oil, soy bean oil, sunflower oil, olive oil. It is important to update the industry players about other oils information as well.

Some refiners are producing blended oils as products and I see the need to keep them updated where these products are selling widely on the market today.

3

Who are the members of MOSTA? What is the significance of joining the organization?

Anyone who works in the palm oil industry is qualified to become our member, such as fresh graduates, engineers, planters, millers. Joining MOSTA will naturally connect you to an international community involved in oils and fats research, processing, plantations and other related fields. Our members are entitled to discounts on the talks, conferences and publications. There are a total of 6 membership categories:

Life

For graduates engaged in scientific or technological work or who have an interest in oils, other lipids and associated substances.

Ordinary

For graduates engaged in scientific or technological work or who have an interest in oils, other lipids and associated substances.

Fellow

Granted to those who are eminent by reason of their scientific, technological contributions to the fields of oils, other lipids and associated substances.

Associate

Granted to those with a suitable education background working in the fields of oils, other lipids and associated substances.

Honorary Fellow

Granted to those distinguished persons who have rendered conspicuous service to the Association, or to the advancement of science, technology and commerce in the fields of oils, other lipids and associated substances.

Corporate

Granted to societies registered under the Societies Act 1966, government institutions and private companies in the business of oils, other lipids and associated substances.

4

MOSTA was inaugurated on 7 September 1989, is there any challenge(s) facing by MOSTA throughout the development until today?

I retired on 18th September 1989, and I founded MOSTA before retirement. Of course, there were some challenges when MOSTA was founded. We had to be relevant as the industry involves business where some industry players emphasized on the returns of investment. I do not deny that finance outcome is important enough in order for a business to be sustainable. However we should also keep up with the advancement of technology. Besides, we also aimed to get international recognition, which is quite hard for a new society like us in those days. Furthermore, we were also facing difficulties of fund raising to operate the society. Today I am proud to announce we are already being recognised and the society is supported by five foundations and palm oil industry in Malaysia.

5

What do you think were some of the organization’s greatest milestones under your leadership?

Our motivation is to raise people’s standard of knowledge of the oils and fats industry. In 1992, I established Oils and Fats International Congress (OFIC), which has now, become our major event. We hope that Malaysians will get to explore other oils at the same time foreigners are able to understand about palm oil as well at OFIC. There will be representatives coming over from 12 countries such as Canada, USA, Argentina, Europe, Egypt, Australia, Korea.

Apart from that, this meeting will involve exchange of oils and fats technology which will improve the industry developments from time to time.

October - December 2016 | ASIA PALM OIL MAGAZINE

28 COVER STORY I started a series of workshops and conferences to encourage best practices among the industry players. It is a good platform where the junior level industry players are able to learn from the experience of seniors, such as agronomy of oil palm, palm oil milling, refinery, quality control and so on. We have been organizing these activities in Medan, Sandakan and Miri which turn out to be successful.

Last but not least these are the other 5 Foundations which I started: i) Tan Sri Dato’ Seri B. Bek-Nielsen Foundation (set up in 1995) ii) Rayson Huang Foundation (set up in 2001) iii) Raja Alias Foundation (set up in 2009) iv) Annie Chin Foundation v) Tun Dr. Lim Keng Yaik Foundation (set up in 2011) These foundations are part of the society income sources.

The fund raised would be used for several purposes such as inviting trainers or speakers, to support R&D and also to support researchers for overseas presentation.

6

What is your comment(s) about current R&D in Malaysia palm oil industry?

Malaysia Palm Oil Board (MPOB) did set up a well R&D field for Malaysia palm oil industry.

They conduct researches related to genomics, palm oil quality control. At the same time, other palm oil industry players will conduct research to address their own problem as well. The industry players may conduct research with the idea initiated from MPOB, or both parties work together into the research. Generally the position of research is quite encouraging in Malaysia, especially Oils & Fats industry.

There is a funding mechanism namely cess tax, where miller will pay tax about RM13 to MPOB for every tonne of palm oil produced, and the accumulated fund will finance the R&D activities.

Recently Malaysia government emphasizes on R&D, hoping to overcome the lack of land usage in palm oil industry. From your point of view, is this effective enough to solve the problem?

7

This is good. The average yield of palm oil is about 4 tonnes per hectare per year compare to soy bean which is about 0.4 tonne. It shows that from the same amount of oils produced, oil palm only cover 1/10 of the land used. Meanwhile, this is the current statistics. The theoretical yield of palm oil per hectare per year is about 19 tonnes, which is more than fourfold of the current yields. Currently we have not achieved the theoretical yields yet but we can move towards the potential target through R&D.

8

What do you see of palm oil industry development compare to other oil such as soy bean oil, rapeseed oil, sunflower oil and so on?

Palm oil is very productive, where it need less plantation land compare to other oil, for example it only occupies 1/10

ASIA PALM OIL MAGAZINE | October - December 2016

of the land if compare to soy bean oil. Oil palm plants only in tropical area, such as our country, where we have adequate natural assets eg. water and sun light, which supports the oil palm very well. In my opinion, palm oil is more sustainable and competitive compare to other oils.

9

Any expansion or development plan for MOSTA in the next coming 5 years?

We aim to establish more international relations, for example China and India, which are the 2 major palm oil consumer countries that occupy 40% of the world populations. At the same time other countries like Europe, America and Japan are well established for technology and development, where we can learn and study how to apply in the oils and fats industry. Moreover, we are currently looking at the area of science for healthy living as well, encouraging people to live in a healthy lifestyle. It covers topics such as anti aging, healthy lifestyle, longer lifespan and so on, which are the hot topics nowadays.

10

Last but not the least, would you like to share any kind advice to the palm oil industry players referring to current palm oil market situation?

Some suggestions for the Malaysian palm oil industry. ● Research & Development of oil palm to be intensified with urgency: utilisation of research findings soonest possible. ● Full exploitation of palm fruits including CPO and PKO ● Full exploitation of Biomass for value-added products ● Palm Biodiesel as cetane improver additive ● Palm Oil as one of premium edible oils

»

Malaysian Oil Science and Technology (MOST), a semiannual magazine published

by MOSTA since1992.

30 PROCUREMENT CORNER

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KEDAH OIL PALM BULKING INSTALLATION Add: Dermaga Air Dalam, 12100 Butterworth, Pulau Pinang Tel: +604 333 2794 Fax: +604 332 5715

CARGILL PALM PRODUCTS SDN BHD Add: Precint 8, Jalan FZ 1-P8, Port Klang Free Zone/KS 12, Pulau Indah, 42920 Klang, Selangor Tel: +603 3165 1419 Fax: +603 3168 6546

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CAROTECH BERHAD (LUMUT PLANT) (Formerly Carotech Bio-Fuel) Add: Plot C1 & C2, Lumut Industrial Park, Kg. Acheh 32000 Setiawan, Perak Tel: +605 201 4192 Ext 1004/1001 Fax: +605 201 4213

KILANG KELAPA SAWIT GOMALI Add: K.B. No. 102, 85109 Batu Anam, Segamat, Johor Tel: +607 949 8245 Fax: +607 949 9245

EMERY OLEOCHEMICALS RIKA (M) SDN BHD Add: Lot 4, Jalan Perak, Kaw. Miel, Batu 9, Jln. Klang-Banting, 42500 Telok Panglima Garang, Selangor Tel: +603 3326 8686 Fax: +603 3122 0687 FELDA BULKERS SDN BHD Add: Jalan Kastam Baru, 91111 Lahad Datu, Sabah Tel: +6089 880 491 Fax: +6089 880 492 IFFCO (MALAYSIA) SDN BHD Add: Plo 406, Jalan Emas, Kaw. Per. Pasir Gudang, 81700 Pasir Gudang, Johor Tel: +607 254 3188 Fax: +607 254 3288 IJM EDIBLE OILS SDN BHD Add: Wisma Ijm Plantations, Bq 3933, Mail Bag No. 8, Bandar Utama, Batu 6, Jalan Utara, 90009, Sandakan, Sabah Tel: +6089 616 776 Fax: +6089 616 775 INSTOLASI FELDA PELABUHAN KLANG Add: Felda Bulkers Sdn Bhd, Instolasi Sawit, Jalan Berembang, 42000 Pelabuhan Klang, Selangor Tel: +603 3168 2919 Fax: +603 3167 5252 INSTOLASI FELDA PELABUHAN KUANTAN Add: Jln Pelabuhan 1/6, Tanjung Gelang, 26080 Kuantan, Pahang Tel: +609 583 3227/228 Fax: +609 583 3875

ASIA PALM OIL MAGAZINE | October - December 2016

KILANG KELAPA SAWIT IMBOK Add: Peti Surat 206, 97007 Bintulu, Sarawak Tel: +6019 888 7261 Fax: +6019 815 4045 KILANG KELAPA SAWIT JUDAN Add: PO Box 197, 96400 Mukah, Sarawak Tel: +6085 739 288 / 084 875 792 Fax: +6084 875 022 KILANG KELAPA SAWIT PASOH Add: Kilang Sawit Pasoh, 72300 Simpang Pertang, Negeri Sembilan Tel: +606 495 1811 Fax: +06 495 1985 KILANG KELAPA SAWIT RISDA DURIAN MAS Add: Graha Espek, No. 31, Jalan Sulaiman 3, Taman Putra Sulaiman, 68000 Ampang, Selangor Tel: +609 822 1213 Fax: +609 822 1235 KILANG KELAPA SAWIT SELUMPUR Add: Karung Berkunci 518, 85009 Segamat, Johor Tel: +607 937 1451 / 937 6867 (Mill) / +603 3181 8888 (HQ) Fax: +607 937 6867 (Mill) / 03 3181 8118 (HQ) KILANG KELAPA SAWIT SEMANOK Add: Lot 306, Jalan Krokop, Miri, Sarawak Tel: +6085 419 321 / 086 360 820 Fax: +6085 435 470

PROCUREMENT CORNER 31

KILANG KELAPA SAWIT TUAN MEE Add: Peti Surat 209, 47000 Sungai Buloh, Selangor Tel: +603 6038 3245 Fax:+603 6038 4786

PGEO BIOPRODUCTS SDN BHD Add: Plo 338, Jalan Tembaga Dua, Kaw. Perindustrian Pasir Gudang, 81707 Pasir Gudang, Johor Tel: +607 268 8240 / 07 268 8222 Fax: +607 251 4970

K.K.S BUKIT SAGU Add: K.K.S Bukit Sagu, Peti Surat 69, 25700 Kuantan, Pahang Tel: +609 551 7152 / 53 Fax: +609 551 7154

RADIANT RESPONSE SDN BHD (KKS GANDA) Add: PO Box 60, 36007 Teluk Intan, Perak Tel: +605 626 0462 / 626 0799 Fax: +605 626 0757

K.K.S NITAR Add: Felda Palm Industries Sdn Bhd, Km 27, Jalan Mersing Nitar, 86800 Mersing, Johor Tel: +607 796 1530 Fax: +607 796 1520

SAWIT RAYA SDN BHD Add: Lot 2227, Jalan Kasawari, Kebun Baru, 42500 Teluk Panglima Garang, Kuala Langat, Selangor Tel: +603 3122 9333 Fax: +603 3122 9933

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K.K.S SIMPANG WA HA Add: Karung Kunci No. 524, 81907 Kota Tinggi, Johor Tel: +607 892 6913 Fax: +607 892 6914 KKS LEMBING SDN BHD Add: Batu 19 1/2, Jalan Sg. Lembing, 26200 Kuantan, Pahang Tel: +609 543 1131 Fax: +609 543 1500 KKS ULU SEBOL Add: Kilang Sawit Ulu Sebol, K.B 101, 81440 Bandar Tenggara, Kulai, Johor Tel: +607 896 1211 Fax: +607 896 1263 KKS SUNGAI TENGI Add: Kilang Sawit Sg Tengi, 4 4010 Kuala Kubu Bharu, Selangor Tel: +603 6042 1363 Fax: +603 6042 1390 KL-KEPONG OLEOMAS SDN BHD Add: 8TH floor, Menara Batu Kawan, No. 1, Jalan PJU 7/6, Mutiara Damansara, 47810 Petaling Jaya, Selangor Tel: +603 7809 8900 Fax: +603 7727 1307 / 1307 MINSAWI INDUSTRIES (K.KANGSAR) SDN BHD Add: Batu 29, Kampung Chuar, 33020 Kati, Kuala Kangsar, Perak.

Tel: +605 751 1388 / 751 1389 Fax: +605 751 1390

SERI ULU LANGAT PALM OIL SDN BHD Add: Lot 3115, Batu 34, Jalan Banting, 43800 Dengkil, Selangor Tel: +603 8768 6630 / 8768 6631 / 8768 6632 Fax: +603 8768 7636 SIME DARBY HOLDGINGS BERHAD (Golden Hope Latex) Add: Jalan Berembang, Pelabuhan Selatan, 42000 Pelabuhan Klang, Selangor Tel: +603 3167 1494 Fax: +603 3167 5181 SOP EDIBLE OILS SDN BHD Add: No. 124-126, PO Box 547, Jalan Bendahara, 98007 Miri, Sarawak Tel: +6086 255 969 SOUTHERN EDIBLE OIL INDUSTRIES (M) SDN BHD Add: 5 & 6th floor, 26-34, Jalan Dato Hamzah, 41000 Klang, Selangor Tel: +603 3250 8331 Fax: +603 3250 8875 SYNN PALM OIL SDN BHD Add: Batu 1, Jalan Kampung Dew, 34700 Simpang, Taiping, Perak.

Tel: +605 847 3536 Fax: +605 847 2469 WILMAR EDIBLE OILS SDN BHD Add: 6427, Mukim 14, Kaw. Perusahaan Mak Mandin, 13400 Butterworth, Pulau Pinang Tel: +604 331 4411 Fax: +604 332 1428

NATURAL SOAP SDN BHD Add: Plo 502, Jalan Besi Satu, 81700 Pasir Gudang, Johor Tel: +607 253 3772/5 Fax: +607 252 8717

October - December 2016 | ASIA PALM OIL MAGAZINE

32

Interview with

Mr. Chan Sow Keong CEO of Green Lagoon Technology Sdn. Bhd. ORGANIZATION BACKGROUND AND HISTORY Green Lagoon Technology (GLT) was formed in May 2010 with the original intention of filling the vacuum in the CDM industry for a local CDM project developer. The team at GLT has accumulated the relevant experience over the years in developing CDM projects, and saw the opportunity to develop our own In-ground Biogas Reactor system and CDM data monitoring technology, and be a one-stop CDM solution provider to the palm oil industry. GLT secured the first fully-CDM development project in Negeri Sembilan shortly thereafter, and has developed other projects with the aim of utilizing the biogas as a renewable source of energy in a biogas engine (for power) and into the boilers (for steam generation).

Since the initial success of this project, GLT has developed other downstream applications for the biogas, including

ASIA PALM OIL MAGAZINE | October - December 2016

the projects to generate power to be sold to the grid under the SEDA FiT Program. By doing so, GLT has been able to optimize available renewable resources, generate jobs and income for the local community around the palm oil mills, at the same time assist the mills to lower their carbon footprint. GLT continues to bring innovations into its system to provide better products and services to the palm oil mills, and in future, to the other waste water treatment facilities in the country and around the world.

INTERVIEW QUESTION

01

Briefly share with us your background prior to joining GLT?

I graduated from Western Michigan University, USA in 1998 with Bachelor of Science Degree in Mechanical

IN THE HOT SEAT 33 Engineering. In 2008, I pursued my advanced study in Master of Business Administration (MBA), specialising in Marketing from University of Southern Queensland, Australia.

I joined GLT as CEO on 6th February 2014. In my previous posting as the Director of Renewable Energy Division in Cenergi SEA Sdn Bhd, I have proven my leadership and capability in building and operating the first commercially successful Feed-in Tariff 2MW Biogas Power project located near Palong, Pahang, Malaysia.

Prior to Cenergi, I worked at an American-based Carbon Project Developer firm as the Senior Aggregation and Regulatory Manager, leading the development of the carbon project portfolio in Malaysia and Indonesia, managing the Project Development Document preparation, overseeing the monitoring & verification processes, as well as supervising operation performances of the registered carbon projects.

02

Could you please tell us more about the range of products and services provided by GLT?

The initial thrust of GLT’s business was in providing consultancy services for the biogas projects in Malaysia, as well as engineering, procurement and construction (EPC) services. The main focus in the early days was in the biogas digester and biogas storage design and construction, before moving to upstream and downstream portions. Currently GLT is more focused on projects with the development potential in biogas-to-power renewable energy facilities, complete with innovative reverse engineering models which are simple to operate, converting waste into energy to create long term economic and environmental sustainability.

With strategic partners and investors, GLT is also now providing financial packages to invest and venture into SEDA FiT projects by providing BOOT (Build-OwnOperate-Transfer) for palm oil millers for the biogas-topower projects. The BOOT arrangements with the millers mean that GLT becomes the owner of the projects, providing the financing to realise the projects and sharing part of the proceeds of the power sales with the mill owners in a winwin situation for all the stakeholders.

03

What do you think were some of your company’s greatest milestones under your leadership?

We have transformed our business model from being a product-based company to a solution-based company, focusing on innovative solutions and technologies to fill the gaps in the biogas industry. For example, palm oil millers are not only searching for efficient biogas capture and utilization systems, but also seeking for funding to finance the project. This is where GLT is not only able to provide bio-energy solutions to our clients, but also offer financial solutions to fund the projects. In addition, the financial solutions to the clients also create investment opportunities to GLT that are able to provide sustainable revenue streams to the company for long term growth.

One of the major barriers that the biogas industry is facing now is human resources. From the projects secured, GLT has been able to bring in more talented people to join the team for the biogas industry. From just mere 5 employees before

2014, GLT now has more than 15 young talented individuals, working together in the team. And the numbers will increase in due course, especially when GLT starts implementing its new products and services, and also with more projects to be secured in the near future.

04

GLT is the first green technology company in ASEAN that raised funds through equity crowdfunding. What is the reason(s) to choose this fund raising method?

Equity crowdfunding is quite widely used in some countries to raise funds among the local populace but is still relatively new on our shores. We were somewhat sceptical at first, since our other fund-raising methods had not yielded much positive results. Our business isn’t the regular run-ofthe-mill kind of business, and many of the representatives we have met from banks, financial institutions, and even VCs couldn’t understand the business nor grasp the risk profile of the industry we’re in. Most of them would rather just stick to the standard property- and land-type deals, which they’re comfortable with in terms of returns, and with minimal risks.

On the other hand, equity crowdfunding gave us a wide platform to promote who we are and what we’re doing, and thus had opened the door for us to explore different nontraditional funding avenues by giving us the platform to meet like-minded people. There are people out there who care enough about the environment (since our business is built on that premise), have some money to invest in companies, and who would like to look at other business opportunities—and it was through equity crowdfunding that we managed to connect with investors.

05

What could be the notable challenge(s) for GLT in the equity crowdfunding fund raising process?

The crowdfunding exercise has afforded us many opportunities to meet up with all kinds of people with different investment appetites and intentions. One of their main concerns was whether this is a financing scam, something which has been somewhat in the limelight recently. Again, because our business is unique and niche, it’s almost impossible to convince people that we are legitimate, and that we are doing a real business.

Most people would rather stick to the tried and tested types of investment, with predictable returns and perhaps even stable incomes. Obviously, our business is not in that category! While some of the people we have spoken to have been very open, not all are receptive to our business model, mainly due to poor understanding of what biogas is, and what renewable energy is all about. And even among the more knowledgeable, the maximum amount that can be raised via the crowdfunding platform in Malaysia is limited, and the investment amounts for the retail investors and angel investors are also controlled.

Granted, crowdfunding is still in its infancy in Malaysia and may take some time before the industry is able to look into the needs of the investment community and the companies which need the funds.

October - December 2016 | ASIA PALM OIL MAGAZINE

34 IN THE HOT SEAT

»

GLT Staff. Back row from left to right: Tan Kian Yong, Lim May Teng, Soong Chuwen, Restuti, Donna Goh, Khoo Choon Hwa, Sia Sin Ying, Chan Yoon Jun. Front row from left to right: Raymond Cheah, Chan Sow Keong, Cheh Koon Chee, Angel Wong

06

How GLT strives to stand out against competitors and succeed in an increasingly competitive international marketplace?

As in any business, the right amounts of Opportunity, Determination, Creativity and Preparation are the required recipes for business success.

The Opportunities are aplenty, with many of the palm oil millers now opening their doors to companies like us to participate with them in the biogas projects.

We believe that the biogas business is in the “Early Adopters” stage now (see Figure 1 below), whereby 80 palm oil mills already have biogas projects, with more than 370 mills still available for the business.

And with opportunity, comes the risks as well. In order to stand out against our competitors, we need to be willing to take calculated risks. GLT has found opportunities where our competitors fall short. For example, most of our competitors are not able to provide project financing solutions like we do, and we are ready to invest into even more projects in the near future.

Figure 1 – Adoption Life Cycle of Biogas Projects in Malaysia.

As for Determination, the team at GLT has shown true grit in face of the many challenges since 2010. During the early days, the biogas projects were few and far between. We have been plowing and sowing, often in hard soil where the palm oil millers are sceptical of the biogas industry, having been burnt previously by unfulfilled promises, particularly in the CDM projects. We are slowly reaping the harvest today, as many of the people that we had met earlier are now coming back to GLT to discuss ways forward for the projects. Most of our projects that we secured or inquired

ASIA PALM OIL MAGAZINE | October - December 2016

from new customers are referred by our existing clients and contractors, as a result of our committed project deliveries from our past projects. This great customer experience of GLT’s innovative solutions is also preventing the existing clients from switching to our competitors.

Another pillar of GLT’s success is Creativity. Since the days of the passive biodigester systems, GLT has developed and enhanced the biodigester into a robust system which can take all kinds of demands in a palm oil effluent environment, especially in events of shock loading to the biodigester system. Our innovative solution to cope with the excess

IN THE HOT SEAT 35 residual oil in the system means that our system is superior to others in the market. Since the biogas-to-power projects became viable due to the increase in the FiT tariff in April 2014, we have also increased our services base to include the downstream and upstream portions of the biogas projects, which none of our competitors are able to provide.

Finally, GLT is ready to face its competitors because of its Preparedness. From being a product-based company, GLT is now a one-stop solutions centre to convert waste into wealth.

This model has been proven successful with GLT’s first two BOOT 1MW Feed-in Tariff projects that GLT invested into two years ago. We can observe that right now, many of our competitors are trying to follow this model of business that we had implemented.

While providing bio-energy solutions to transform the carbon liabilities into revenue stream, GLT is also creating investment platforms for the public who are interested to purchase small shares of the investment. Unlike our competitors, we are sharing the investment opportunities with the others. In this respect, GLT is different from our other competitors.

Of course, all the above cannot succeed without our team members. We have a strong team who are passionate and believe in what we are striving for. In our company culture, we treat our people like family members with

open communication. We take care of each other, celebrate success, have fun, communicate freely, learn by failure and respect each other. We value our people above all else and we always find a family-based approach to recruit, groom and maintain a loyal team to build a successful company.

07

Any expansion or development plan for your organization in the next coming 5 years?

In the next 5 years, we are targeting to develop 20 FiT Projects, aided with regional expansion into Indonesia, Philippines and Papua New Guinea to create much stronger sustainable revenue stream to the company. We are also aiming to penetrate into the Compressed Biogas (CBG) market, integrated biogas-biomass production facilities and other agricultural waste feedstocks when these investments become economically feasible.

In the interim, GLT is developing innovative software and hardware products and solutions, such as Carbon Cloud Monitoring System and Micro Biogas Power Plant to capture the niche market which is not in demand currently, but would be in the near future. These products and solutions are not only able to fill the gap that the industry is lacking of, but also to improve the customer experience to monitor and quantify the performance of biogas plant via cloud network in real-time.

Hunting line Chan: +6012 - 388 7929 (chansk@glt.my) October - December 2016- |200 ASIA PALM OIL MAGAZINE Raymond: +6017 2779 (raymond@glt.my)

36 GREEN SOLUTION

BIODIESEL FORMULATION RECONSIDERED

T

he biodiesel formula and the proportion of crude palm oil (CPO) in diesel will be adjusted to curb the impact on farmers and biodiesel consumers, says Energy Minister Anantaporn Karnchanarat.

The decision comes after palm growers, a biodiesel-related association and a group of palm crushers opposed the government’s policy to reduce the proportion of crude palm in biodiesel from 5% (B5) to 3% (B3).

Plans to cut the percentage of palm oil used in biodiesel were previously intended to reduce possible shortages in palm cooking oil.

“We would be ready to cut down the proportion of palm in the biodiesel to 3%, or B3, if needed,” said Mr Anantaporn.

The Energy Ministry needs more information on the country’s palm oil demand and palm stock reserves from the Commerce Ministry, he said, as well as data on production trends and the supply side from the Agriculture Ministry.

According to the Agriculture Ministry, Thailand is forecast to produce around 10.9 million tonnes of palm fruit this year, down from 11.0 million the previous year, largely because of a drop in yield.

ASIA PALM OIL MAGAZINE | October - December 2016

In May, the Energy Policy Administration Committee said it was preparing for the commercial sale of B10 biodiesel nationwide by 2018.

The use of the fuel, a blend of 10% palm oil and 90% diesel, is part of the National Alternative Energy Development Plan to raise renewable usage to 30% over the next few years, up from 12% at present.

The Department of Energy Business (DOEB) said it is ready to cut the proportion of palm in diesel to B3 from B5 if there is any palm shortage, said director-general Witoon Kulcharoenwirat.

GREEN SOLUTION 37 He said the DOEB will conduct a study to determine the exact quantity of CPO stocks nationwide. In contrast, if it is found that palm fruit prices continue to drop due to abundant palm supply, the authorities would be ready to switch back from B3 to B5 in order to help increase the percentage of palm oil used in biodiesel to help absorb additional supply, said Mr Witoon.

Prior to the recent B3 plan, the DOEB on July 25 had required that petrol stations switch from selling B7 to B5 biodiesel to reduce palm oil usage in the energy sector while bolstering supplies for the cooking industry.

Chayodom Suwarnwattana, a representative of palm oil growers, said the palm fruit price had dropped from 6.40 baht per kilogramme to 5.4 baht in only a week’s time and palm growers feared that the price would continue to dropped from 6.40 baht per kilogramme to 5.4 baht in only a week’s time and palm growers feared that the price would continue to drop even further.

He said the cost of growing palm fruit is in the range of 3.80-4.0 baht per kg.

Mr Chayodom said if the price of palm fruit falls below five baht per kg, growers would stage street protests to demand the government’s help.

Sanin Triyanon, a representative from the Bio Diesel Producers Association, said the drop in CPO prices are largely because of massive stocks accumulating over the past few years, a situation caused by speculation that eventually triggered hoarding.

The domestic CPO price rose substantially to 33 baht per kg -- well above the global price of around 20 baht -- because of the government’s plan to increase the proportion of CPO used in fuel That in turn encouraged profiteers to start hoarding, prompting oversupply and an eventual fall in prices, he said.

Source : Bangkok Post

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October - December 2016 | ASIA PALM OIL MAGAZINE

38 GREEN SOLUTION

IOI AGREES TO REPARATIONS ON BREACH OF SUSTAINABILITY CONVENTIONS

F

ollowing a meeting between IOI Corporation Bhd (IOI) and environmental consultant Aidenvironment, a joint statement was issued regarding reparations that IOI had agreed upon in regards to their breach of sustainability conventions by three of their Indonesian subsidiaries (SNA Group).

The list of reparations involves the incorporation of key legal and environmental issues, removal of ‘overplanted’ oil palms, implementation of fire prevention and mitigation measures, rehabilitation of peat, high conservation value (HCV), and high carbon stock (HCS) areas within the SNA Group.

The reparation list also included the need for IOI to continue follow up with other concerns such as the Long Teran Kanan case in Sarawak, and the development of PT Kalimantan Prima Agro Mandiri (PT KPAM) and IOI’s third-party suppliers.

“We believe the statement highlights the indicators to monitor which are the progress of removal of overplanted area outcome of the verification trip and meeting in lateAug/early-Sep, and resolution of other actions,” opined analysts with AllianceDBS Research Sdn Bhd in a report.

TESTIMONIAL “Many thanks for your hospitality, friendly and professional service. Because of the advertising platform, we are able to get abundant customer resources and receive a lot of orders. We will keep on choosing you as our partner magazine for publicity.”

- Jacky Chen, General Manager of Nantong Ant Machinery Co., Ltd.

“At this point, it remains unclear if the suspension may be lifted with progress along these action steps, or full completion. However, the 12-month reporting timeline stated in the RSPO’s letter may imply that any changes in status may occur after that period.”

The firm believed it is imperative that IOI fullfills these reparations as “fulfilment of requirements set out by Aidenvironment is key to the potential reinstatement of IOI’s Roundtable on Sustainable Palm Oil (RSPO) certificates as the trigger for the suspension was Aidenvironment’s initial complaint against IOI.” “Resolving Aidenvironment’s complaint is also explicitily mentioned in RSPO’s letter in May 2016, where it requested for quarterly reports on IOI’s progress for 12 months,” added the research arm.

However, it is unclear whether IOI’s RSPO certificates will be reinstated in the duration of the quarterly reports or after that period.

IOI’s prospects in the next few financial quarters are also unclear

ASIA PALM OIL MAGAZINE | October - December 2016

but as several prominent clients have announced intention to begin disengaging with IOI. Furthermore, AllianceDBS Research’s report added that a coalition of 31 NGOs had recently urged global brands and palm oil traders to drop IOI as a supplier.

“Over the next few financial quarters, we expect some impact on commercial demand to be seen. Several prominent clients have announced intention to begin disengaging with IOI; and a coalition of 31 NGOs had on 22 Jul further urged global brands and palm oil traders to drop IOI as a supplier.

“The margins of its Manufacturing segment may see pressure, as its stock of certified sustainable palm oil (CSPO) winds down. In such an event, our earnings forecasts would see downside revisions.”

Due to this, the research arm maintained its ‘fully valued’ rating on IOI with a target price of RM3.60 until further developments surfaces.

Source : Borneo Post

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40 GREEN SOLUTION

PROBLEMATIC PEATLANDS CAN BE DEVELOPED

W

ith the advent of scientific, technological innovations and good management practices, it is possible to develop problematic peatlands to bring about major economic crops such as oil palm, sago and other cash crops.

Natural Resources and Environment Board (NREB) controller of environment quality, Peter Sawal said in recognising the significant roles of peatlands for biodiversity conservation, storage of organic carbon and balancing emission of greenhouse gas, Sarawak undertook proactive and integrated approach in peatland ecosystems to prevent their irreversible degradation.

He said environmental elements incorporated in the state’s development policies, enhanced institutional capacity to enforce environmental regulations and collaboration in scientific peat research, helping to ensure that peat resources were sustainably managed.

Sawal said this when presenting a paper written by him and Tsai Koh Fen of the NREB entitled, ‘Managing Peatland-Regulation Controlled Open Burning in Sarawak’ at the 15th International Peat Congress 2016 here today.

He said Sarawak adopted the

Canadian Fire Danger Rating System to manage biomass disposal in plantation development, including peatland development, through a controlled open burning permit system.

“This system has been effective in controlling haze pollution from local sources, as the open burning permit will only be issued during favourable weather conditions.”

Sawal said the state government had earmarked oil palm as one of the main agricultural crops for socioeconomic transformation of its rural population and to achieve the state’s vision of a developed state and high income economy by 2030.

He said the state was targeting to develop two million hectares of oil palm plantation by 2020 and to date, more than 1.3 million hectares had been planted, including about 400,000 hectares of peatlands.

“The development of peatlands as the new growth frontier provides the impetus for much needed infrastructure and amenity development such as roads, telecommunications and water supply for rural communities.

“Many native customary right land (NCR) owners are taking the opportunity of market access in developing their once-idle and marginal NCR lands, including

ASIA PALM OIL MAGAZINE | October - December 2016

peatlands, with oil palm to enhance their socio-economic status,” he said.

To date, Sawal said, the state had set aside about 105,563ha of peat swamp forests as Totally Protected Areas (TPA) under the National Parks and Nature Reserves Ordinance (1997), and other peatlands having high biodiversity conservation values would also be gazetted as TPA in the near future.

The remaining peatlands, especially state land and NCR have been identified for economic development to enhance the living standard of present and future generations.

He pointed out that although peatlands were once considered marginal and problematic soil, good management practices had not only increased crop productivity but also reduced potential environmental problem associated with peat development.

“The recently established Tropical Peat Research Laboratory Unit of the Sarawak Government is testimony of the state’s endeavour to protect and manage its peat resources through holistic research on peat dynamics and potential for lasting benefit to Sarawak, as well as global communities,” he added.

Source : Bernama

Tag & sample your palms and leave the rest to us!

Easily tag and track your seedlings or trees, efficiently collect leaf samples and post those samples back to Orion.

Orion Biosains SureSawit™ Services In our cutting edge service lab we perform automated DNA isolation, high throughput genotyping and data analysis. We mail your results in a confidential report or you can access them online.

Orion Biosains offers the following sample collection kits and DNA tests: SureSawit SHELL - precisely determine the tenera, dura, and pisifera fruit form of a seedling, nursery palm or field planted palm.

SureSawit VIR (available 2017) - enables early differentiation of virescens from nigrescens fruits, allowing selection for desired future fruit color.

SureSawit KARMA (available 2016) - predicts potential abnormalities of somaclonal variants that could lead to the mantled fruit form.

Innovating Agriculture Through Bioscience Orion Biosains SDN BHD (1067970 - H) Unit E-6-3A, 4th Floor, Block E, SetiaWalk, Persian Wawasan, Pusat Bandar Puchong, 47160 Puchong, Selangor Tel: 03 5879 1711, Fax: 03 5879 1712 www.orionbiosains.com

44 TECHNOLOGY & PRODUCT NEWS

INTRODUCING ORION BIOSAINS DNA TESTING AND THE IMPACT IT HAS ON THE OIL PALM INDUSTRY

D

Background Information:

ue to the fact that tenera palms produce 30-36% more oil than dura palms , the purity of oil palm planting materials is crucial for plantation companies to maximize oil extraction rates at the CPO mill and thereby achieve peak operating profit. The standard process for the production of oil palm planting materials involves carefully controlled crosses of dura (maternal palms – with 70% yield) and pisifera (paternal palms – with little to no yield) to generate high-yielding hybrid tenera seed (with 100% yield).

However, absolute control of this breeding process is difficult, resulting in the unintended planting of palms that will produce non-tenera fruits with suboptimal yield. Therefore the planting of contaminant non-tenera palms decreases the plantation’s

financial performance for the entire 20 to 30 year life of newly planted material.

SureSawit™ Shell Enables Near 100%

Tenera Planting:

With the recent completion of the oil palm genome sequence and the discovery of the SHELL gene by the MPOB and Orion, it is now possible to utilize DNA testing to enable near 100% tenera plantings. Orion Biosains SDN BHD offers SureSawit™ SHELL screening services, the first DNA-based oil palm seedling purity test in the world. This innovative service was recently identified by the BBC as one of the 8 most innovative technologies developed in the world in 2016 (http://www.bbc.com/news/ business-36244547). The service enables seed producers, growers and plantation owners to identify and confirm the

ASIA PALM OIL MAGAZINE | October - December 2016

fruit-form of palm seedlings as early as the pre-nursery stage. Therefore upon receiving screened planting materials, plantations can be assured that the seedlings they plant in the field will be near 100% tenera and will produce optimal yield.

SureSawit SHELL Screening Test The SureSawit SHELL screening test consists of a sample collection kit, semi-automated DNA isolation and high through-put genotyping.

Using a patent pending leaf sample collection device, nursery or plantation workers can easily and quickly collect leaf samples and tag the trees. These samples are sent to Orion Biosains’ cutting edge testing laboratory where they are processed and a confidential report is generated informing the customer which trees are dura, pisifera or tenera.

TECHNOLOGY & PRODUCT NEWS 45

Quantifying Gains Possible with DNA Certified Tenera Planting:

Utilizing SureSawit-SHELL Technology, the MPOB and Orion recently published the non-tenera contamination levels present in oil palm planting sites throughout Peninsular Malaysia, Sabah and Sarawak.

The study found that: • >11.0% - Of all palms tested were the low yielding non-tenera type • >10.0% - Contamination was found in certified nurseries in all 7 regions tested in Malaysia • >15.0% - Contamination was the average of all certified nurseries tested in 3 of 7 regions

• >20.0% - Contamination was the average of all certified nurseries tested in 2 of 7 regions • >25.0% - Contamination was found in one fifth of certified nurseries tested throughout Malaysia • >63.0% - Contamination was found in a single certified nursery The study concluded that: • The operating profits of the oil palm industry could increase by billions of Ringgit annually if 100% pure tenera planting could be achieved.

• Many industry members may be planting some amount of low OER material unknowingly, compromising their organizational operating profit for decades.

In addition to the significant economic impact of the SHELL testing, there are the obvious social and ecological impacts of being able to reduce planting area by increasing oil yield per palm planted.

The application of the SHELL test is just one example of the DNA tests that Orion Biosains is bringing to the oil palm industry. The company

is currently in the final stages of implementing Karma testing to predict the mantled -abnormality which will allow for the culling of clonal ramets destined to yield unproductive abnormal fruits years after field planting. This will then be followed by implementation of VIR genetic testing for fruit colour phenotype which facilitates the development of elite breeding lines with a natural color indicator for fruit ripening.

You can learn more about Orion Biosains and all of its products by visiting www.orionbiosains.com

October - December 2016 | ASIA PALM OIL MAGAZINE

46 TECHNOLOGY & PRODUCT NEWS

A BETTER WAY TO MOVE PALM OIL

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HEP Pallecon Solutions provides bulk handling containers and liner bags to customers across a range of industries. It aims to reduce transport costs and waste, improve the handling of semi-bulk materials and ensure the product’s integrity as it moves through the supply chain.

With service centres operating worldwide, CHEP Pallecon is well known for its equipment pooling solutions and operates on a global scale. Customers use CHEP Pallecon’s containers & liner bags to manage the flow of bulk products from various industries i.e. food, personal care, industrial, pharmaceuticals and etc.

“We introduced the foldable plastic container 10 years ago and we are continually looking at enhancing our range of products by adopting new technology,” John Plummer, CHEP Pallecon’s Managing Director, AsiaPacific says.

CHEP Pallecon’s Managing Director (Asia-Pacific) John Plummer lists the 3 main ways Pallecons solve customers’ problems: 1. Reduce waste. Products such as mayonnaise and liquid sugar are difficult to decant as the high viscosity reduces product flow and leaves excess product residual. CHEP Pallecon has introduced air assist liner bag technology which forces the product towards the decant

point minimising product waste. The product may also need heating to reduce the viscosity and improve product flow.

This is done using a heater base board which is placed in the bottom of the Pallecon prior to filling. Another product that facilitates improved decanting is the MaxiValve which is based on a ball valve instead of a butterfly valve. This improves product flow by 33 per cent by providing full egress for the product.

2. Cut costs. The recalibration of the supply chain using packaging as a driver can result in step change reduction in costs.

For example the change from drums to Pallecons will result in a 25% improvement in out-bound transport efficiency, improved handling productivity and up to 66% reduction in warehousing costs while the folding capability of the unit can reduce empty relocations by up to 80% compared to fixed IBCs. These measures help achieve CHEP Pallecons goal to provide the lowest total cost supply chain solution for the movement of bulk products.

3. Mitigate quality risks. CHEP Pallecon helps protect our customers’ product through a range of fit for purpose liner bags ranging from industrial and dangerous goods compatible bags to food grade aseptic bags using the latest valve technology. We have been providing solutions for our customers for over 60 years and the knowledge, experience and supply chain insights of our people ensures the optimum quality outcomes for our customers. We have

ASIA PALM OIL MAGAZINE | October - December 2016

recently included blue tint liner bags for food security and co-extruded open top liner bags to allow high flex and strength to contain products such as meat and poultry. Other advantages of the Pallecon technology is the CHEP flat filling technique. A liner bag is fitted into the bottom of the Pallecon and connected via a hose coupling, creating a closed filling system. As the product starts to flow, the liner bag self-positions and opens up automatically, preventing the introduction of air and greatly reducing foaming improving both product quality and productivity.

TECHNOLOGY & PRODUCT NEWS 47

HAUS CENTRIFUGE DECANTERS SET NEW STANDARDS IN CRUDE PALM OIL PROCESSING

H

AUS Centrifuge Technologies has put experience in vegetable oil extraction into palm oil processing.

HAUS provides solutions in either 3 phase or 2 phase applications even in Non-Dilution process which has very extreme conditions for a decanter. In Non-Dilution process sludge conditions flactuates more than 30-35 % oil and 3545% NOS content sludges. In last R&D studies HAUS achieved even 0.6% oil loss in cake sample, in wet basis which equals around 4-6 % oil loss in dry basis.

This results are about 1/2 of acceptable oil loss value in the market. HAUS Decanter processes just in between 1-2.5% oil loss in the cake in average operation. This efficient operation conditions slightly equals 0.25- 0.3% oil loss in total FFB comparingly.

So, Modern and high performance DDF Series HAUS Decanters are designed

for Crude Palm Oil extraction which is setting new standards in providing ,maximum oil yield, excellent oil quality, performance / price ratio, continuous and problem free operation, compact design, wide capacity range, continuous service and spare part service.

DDF decanters robust and durable thanks to its high grade material features.

Complete range of DDF Decanter features a user friendly, compact design with all wet parts made of resistant materials. DDF Decanters provide continuous ,non-stop and problem free operation by flexible operation settings in process control unit. HAUS Decanters’ another advantage is having a very strong and endurant cycloid gearbox.

Thanks to Dual Drive and user friendly PLC Interface, HAUS Decanter allows its user to have a full control over the process and gives many options

to adjust that settings. For maximum performance varying the bowl speed and providing the necessary G-Force, varying the conveyor speed, varying the pond depth in the bowl, for the best oil clarity and the least oil loss in the cake.

HAUS product innovations that can be used in Palm Oil Production Plants, are still going on by new Research and Development studies on Palm Oil Mill Effluent (POME) Treatments, for extra oil extractions and recovery and, BIOHAUS Fast Fermentation Systems of organic substances which 20-22 T/D capacity reactor speeding up and completing the fermentation only about 24 hours, successfully, to produce quick fertilizer and animal feed.

As known, after establishing HAUSEUROPE B.V. in NETHERLANDS, in 2012, HAUS subsidiaries are to continue by extending to South East Asia region, by HAUS SEA in KUALA LUMPUR, with ongoing projects in Malaysia, Indonesia, Vietnam, Philippines, Thailand and Brunei, beside agents in North Africa, South & Latin America, and North America continents.

October - December 2016 | ASIA PALM OIL MAGAZINE

48 TECHNOLOGY & PRODUCT NEWS

A STATE-OF-THE-ART IN PALM OIL MILL DESIGN

“Designing a palm oil mill is an art,” said the 70 years old Malaysian Palm Oil Mill Consultant, Mr Ng Keng Phoy, or commonly known as Pak KP Ng in Indonesia. He is an Artist and a Photographer.

»

Presses on Zero-Floor Level in various mills

2.0 Presses simply on Low Floor Level

“The instinct in observation for the last 40 years in milling operation as a Mill Engineer, the realization of some innovation into engineering drawings as a Designer and the in-depth studies as a Consultant beginning at the age of 60 years old at his career, is just passing a time evolution bringing the palm oil industry to a more cost effective consideration and less complicated operation in the coming centuries,” said the forever learning old age gentleman.

1.0 Unique figures on Presses at Zero-Floor Level Presses on a 1.5-meter Platform is not an uncommon thing in Mr Ng’s Palm Oil Mill design, not only its cost effective in investment, but also it provides simple operation with an ease of maintenance and safety .

3.0 CBC on Zero-Floor Level

“It is a State-of-the-Art by breaking the monopoly in design within the last 50 years palm oil mill history, by simply placing all the Presses from the conventional 6-meter height level to a mere Zero-Floor Level,” mentioned by Pak Ng with his unique innovation and state-of-the art invention for many new mills he had completed for the last 10 years in Palm Oil Mill Consultancy in Indonesia, Malaysia and Thailand.

ASIA PALM OIL MAGAZINE | October - December 2016

TECHNOLOGY & PRODUCT NEWS 49 2 units of Palm Oil Mills of 45/60 tons FFB per hour capacity each, had been in operation with Cake Breaker Conveyor on the Floor Level for the last 5 years in Sumatra, Indonesia for PT. Tunas Baru Lampung, tbk.

5.0 Static Walking Sterilizer (SWS)

Mr Ng does not make the common cut & paste drafting practice but has successfully made the certain palm oil mill mission impossible into realities. Each Mill is a unique design by itself.

Improvement on Palm Oil Mill design from Pak KP Ng always goes abreast with microchips, and he is setting up his design studio in Shanghai with a team of 3D and VR capabilities.

4.0 Low Level FFB Ramp

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SWS (Static Walking Sterilizer) Vital Application for new or old in Palm Oil Mills Oil Loss in Sterilizer Condensate: <1.0% (sample) Oil Loss in Empty Fruit Bunch (EFB): <2.0% (sample)

6.0 Declaration on the Call Off of Vertical Sterilizer

Elimination of heavy steel structures on elevated 4.5-meter height FFB Ramps had been constructed by a mere 2.5-Meter height Ramp with Steel Hoppers sitting onto Concrete Base.

Mr KP Ng had declared all 3 of his patents of Vertical Sterilizers obsolete and does not require application to the palm oil industries. His Vertical Sterilizers with SFB (Sterilized Fruit Bunch) discharged by gravitational force, either by Bottom Discharge Door or Side Spigot Discharge Door are no more in use due to many operational difficulties and especially huge Oil Loss in Sterilizer Condensate is >2.0% (sample) and EFB is >3.0% (sample)

Âť

A new 45/60 tons FFB per hour capacity Palm Oil Mill is under construction in 2016 in Lampung, Sumatra, Indonesia with FFB Ramp at Zero-Floor Level.

For more information, kindly contact Mr. KP Ng at: i) e-mail: Travel_Lonely@yahoo.com ii) Tel: +60 16 207 2789

October - December 2016 | ASIA PALM OIL MAGAZINE

50

JCB ADDS FOURTH HI-VIZ MODEL TO LOADALL TELEHANDLER RANGE

JCB today unveils a fourth model to its HiViz telescopic handler range

– building on the success of its high visibility, low boom pivot design.

T

he 540-140 HiViz offers a 4,000kg maximum lift capacity with a maximum lift height of 13.47m on wheels, or 13.78m when using stabilisers. Delivering unrivalled rear and offside visibility, the HiViz machine is equipped with a choice of Tier 4 Final diesel engines.

This new model offers four key benefits for customers in the rental sector, construction industry and the plantation industry: • Improved on-site safety through its HiViz design • Ease of use: simple, intuitive controls • Serviceability: ground level daily checks and serviceable components along with extended service intervals • Performance: superb capacity at reach

ASIA PALM OIL MAGAZINE | October - December 2016

OUTSTANDING PERFORMANCE The 540-140 HiViz Loadall has the lowest boom mounting in its class, up to 235mm lower than the standard 540-140, ensuring excellent visibility across the offside and to the rear of the machine and boosting safety on site.

Visibility is further improved thanks to a 13% reduction in the boom section and a more compact rear chassis section which reduces overhang by 330mm. Hydraulic performance is closely matched with the engine’s output, while lift performance has been

TECHNOLOGY & PRODUCT NEWS 51

handler is powered by JCB’s proven Ecomax diesel engine. Customers can choose a low-maintenance 55kW (75hp) version, that meets the latest engine emission standards with no requirement for a Diesel Particulate Filer (DPF) or a diesel exhaust additive fluid. JCB’s recalibration of the Ecomax engine achieves this emission requirement while achieving an 8% fuel saving.

tailored to the machine’s stability, both when working on wheels and with the stabilisers.

This gives the 540-140 HiViz unmatched lifting and reach capabilities, when compared to competitive machines. Hose burst check valves on the lift rams prevent collapse in the event of a hose failure and JCB’s patented Adaptive Load Control system is automatically activated to control boom functions and help longitudinal stability.

The

540-140

HiViz

telescopic

For those that require additional power, there are 81kW (108hp) and 93kW (125hp) versions of the Ecomax engine, that use JCB’s innovative onecan SCR solution, with no expensive DPF. The Selective Catalytic Reduction unit, which uses a Urea-based additive to reduce NOx emissions, is incorporated into a single exhaust muffler, replacing the existing exhaust box. This one-can solution maintains JCB’s compact engine design, allowing machine designers to utilise a low engine canopy for unparalleled crossmachine visibility.

JCB’s ergonomic single lever control (SLC) is available as an option, delivering smooth, precise control and contributing to reduced operator fatigue and improved comfort in the cab. The Loadall has no complex interlocks or ‘dead-man’ switches on the hydraulic controls, making the HiViz easy to control and operate.

Despite dimensions,

a

compact chassis wide-opening gas-

assisted engine canopy delivers ground level maintenance with up to 35% improvement in the machine’s SAE service rating versus the competition.

A dry lubricant system delivers extremely durable boom wear pad life, with service intervals of just 500 hours.

The 540-140 HiViz will be offered with a host of attachments. There will be a choice of aerial work platform options, including a platform ready specification, that can be used with the Loadall to maximise utilisation and versatility. All Loadall models are provided with JCB LiveLink telematics, while UK models also come with CESAR Datatag marking and an immobiliser. The machine’s immobiliser has to synchronise with the LiveLink ECU before the engine is started, adding to security on site.

ABOUT JCB JCB is the world’s third largest manufacturer of construction equipment. The company has more than 12,500 employees and 22 factories around the world, including 11 in the UK and others in India, China, Brazil and North America. The company makes more than 300 different machines including backhoe loaders, tracked and wheeled excavators, mini and midi excavators, Loadall telescopic handlers, wheeled loading shovels and compaction equipment. www.jcb-singapore.sg/

October - December 2016 | ASIA PALM OIL MAGAZINE

52 TECHNOLOGY & PRODUCT NEWS

JCB UNVEILS NEXT GENERATION 4-6 TONNE MIDI EXCAVATORS

B

uilding on the successful introduction of next generation 6, 8, 9 and 10 tonne midi excavators last year, JCB is releasing four additional models, with operating weights of 4.8-5.7 tonnes.

The midi excavators are available in conventional, reduced and zero tailswing configurations, to meet the requirements of customers across the world.

Key features include: • 500 hour greasing intervals • Improved cab instrumentation • 18% increase in 57C operator’s cab capacity • 11% improvement in visibility • 9% boost to bucket tearout • 5% additional dump height • 2% more powerful bucket tearout force

DURABLE PERFORMANCE The four new models are; the 48Z-1, which replaces the previous 8045Z/8050ZTS; the 51R-1 to replace the 8050ZTS/RTS; the 55Z-1, which takes over from the 8055ZTS/RTS; and a completely new 57C-1 model. All four share the durable design proven on the larger machines in JCB’s next generation compact excavator range, with 100% steel bodywork and a sturdy four-plate dipper arm construction.

The dig end is 100% bushed, leading to extended 500 hour greasing intervals. JCB has also revised the pin pick-up points to work with a number of competitive bucket brands, while optional hydraulic or manual quickhitches can be specified for

ASIA PALM OIL MAGAZINE | October - December 2016

faster attachment changeover. JCB has developed a new range of ECO buckets, with a redesigned profile for easier filling and improved material retention.

The excavators feature a redesigned dig end, with a longer main boom and shorter dipper arm, to provide up to 5% greater dump height for easier truck and site dumper loading. The upgraded hydraulic system also delivers up to 9% more bucket tearout force and 2% higher dipper arm tearout, boosting performance and productivity.

OPERATOR COMFORT AND CONTROL The excavators feature an improved

TECHNOLOGY & PRODUCT NEWS 53

operator’s cab, with the 57C-1 using the same structure as the larger 10 tonne machine. The cab is 18% more spacious and offers up to 11% more visibility, improving both comfort and site safety. Even in reduced and zero tailswing configurations, JCB’s midi excavators deliver impressive levels of comfort for the driver, with reduced noise and vibration levels and easilyreplaced flat glazing throughout.

The biggest development in the cab is the adoption of a new display screen and control system, with an automotive style rotary controller allowing easy access to a host of systems and information. The operator can set auxiliary hydraulic flows for two separate attachments from the cab, while the menu mode button switches the rotary controller between throttle modes, including a one-touch idle function and menu mode.

The cab is also offered with a new membrane switch panel, to control auxiliary flow settings, working lights, beacon, wipers and JCB’s 2Go additional hydraulic activation safety system. As with JCB’s larger JS excavators, the midi machines now have nine power modes available, including Eco and for the first time an H+ heavy digging mode. The machines can also be ordered ready for tiltrotator installation from the factory, with a programmable third auxiliary function.

Another innovation is the inclusion of an optional Safe Lift feature, complete with an integral Lift Overload warning system. An industry first at this weight, Safe Lift incorporates a green-amberred graphic in the new monitor panel,

with an audible warning that sounds if the machine approaches overload.

Expected to be a popular option across Europe, the Safe Lift feature is included as standard when hose burst check valves have been specified, ensuring maximum safety for those customers that use the midi machines to lift pipes and other materials on site.

Productivity has been further enhanced with the adoption of an electro-hydraulic dozer control lever, with up to three buttons in the head to control two-speed tracking, dozer float and a four-way adjustable dozer blade where fitted. The sturdy, ergonomically designed lever has a large diameter and improved resistance, to deliver improved response and more accurate control on rough ground. Separate buttons in the control lever head activate the machines’ standard ‘auto kick-down’ two-speed tracking, along with optional dozer float and four-way blade control.

The new JCB midi excavators feature 20 improved standard features and 20 new options, to improve productivity and performance on site.

The cab can be equipped with optional LED work lights that feature a ‘guideme-home’ function, providing lighting for three minutes after the machine has been turned off to allow the operator to get to a position of safety when working at night. Other safety options include a green seatbelt in use beacon and seatbelt isolation.

LOW COST OF OWNERSHIP All four excavators can be supplied with a choice of Stage IIIA/Tier 4 Interim Perkins engines, or Tier 4 Final

engines from JCB by Kohler, to suit various territories. The Perkins engine delivers 35.7kW (48hp) and 143Nm of torque, while the JCB by Kohler engine produces 36kW (48hp) and 225Nm. Access to the engine has been improved thanks to wide opening steel canopies at the rear and to the side of the machine. The new cab also features a removable floor section, requiring no tools, to access major hydraulic components. A fully bushed dig end with 500 hour greasing intervals also reduces downtime and daily maintenance, cutting total cost of ownership for the customer and increasing productivity.

The machines feature an open undercarriage design with sloping track frames for easy cleaning and to prevent the build-up of material.

All models are available with JCB’s LiveLink telematic monitoring and location service, providing customers with machine working hour data, fuel level and consumption information and a host of critical system alerts.

ABOUT JCB JCB is the world’s third largest manufacturer of construction equipment. The company has more than 12,500 employees and 22 factories around the world, including 11 in the UK and others in India, China, Brazil and North America. The company makes more than 300 different machines including backhoe loaders, tracked and wheeled excavators, mini and midi excavators, Loadall telescopic handlers, wheeled loading shovels and compaction equipment. www.jcb-singapore.sg/

October - December 2016 | ASIA PALM OIL MAGAZINE

54 THE PLANTER’S CORNER

SFO TO BUILD PALM OIL MILL IN BAKONG FOR SMALL-TIME PLANTERS

S

tate Farmers Organisation (SFO) will build a palm oil mill on a 105-acre land at Sungai Laong in Bakong soon to allow small-time farmers to sell their oil palm fruit bunches direct to the mill with the best possible prices.

Its chairman Datuk Sylvester Entri said the farmers were now selling their produce to private mills at everchanging prices based on their (farm) locations.

“With a mill specifically for smalltime farmers, they will be able to get a fair price for their fruit bunches,” Entri said during a Raya gathering of National Farmers Organisation (Nafas) here recently.

chairman Datuk Mohd Nazri Abdulah and representatives of farmers’ organisations in Sabah, Labuan and Peninsular Malaysia were also present.

According to Entri, the muchawaited mill would be a huge booster for oil palm planters in Marudi.

According to MPOB’s statistics, there are 3, 000 small-time farmers in the region and when the mill materialises members of Baram Area Farmers Organisation could also buy shares in the mill.

The mill project is a joint venture between LCDA, Nafas and Baram AFO. Source : The Borneo Post

Nafas Board of Directors chairman Datuk Seri Saipolbahari Suib, deputy

ASIA PALM OIL MAGAZINE | October - December 2016

“With a mill specifically for small-time farmers, they will be able to get a fair price for their fruit bunches,” - Datuk Sylvester Entri State Farmers Organisation (SFO)

Great Plantation Solutions.

• Great versatility with front loading shovel and rear excavator.

• Enjoy excellent mobility for all terrain type.

• JCB Dieselmax engine provides great prodictivity with reduced fuel cost.

Cambodia RMA Cambodia +855 2388 3488

Laos RMA Laos +856 21 315 3768

Singapore Wealco Equipment +65 6265 5744

East Timor Hiro Motors +67 0729 1028

Malaysia DM Equipment +603 5192 1933

Taiwan Anjoint & Co. +886 7352 3377

Indonesia (Java, Sulawesi & Papua) +62 23 2930 4046

Papua New Guinea Agmark Machinery +67 5472 6324

Thailand DKSH JCB +66 2639 7000

Indonesia (Kalimantan) Mitra JCB +62 813 5124 9888

Philippines ICON Equipment +63 2556 7576

Vietnam T&C JCB +84 49 8112 2977

Indonesia (Sumatra) Persada JCB +62 812 3075 2345

Excellent all-rounders, JCB backhoe loaders are invaluable in the maintenance of plantation road networks and irrigation systems. On an average plantation, these machines can service at least 5,000 hectares, while 4-wheel drive and 4-wheel steer options translate performance to the roughest of ground conditions. Also ideal for construction work back at the mill, it’s hardly surprising that these flexible tools remain the number one backhoe loader in the world.

Contact our dealers for more information about the JCB Telescopic Handler range.

www.jcb.com

56 THE PLANTER’S CORNER

HENKEL AND BASF COLLABORATE TO MAKE INDONESIA PALM PRODUCTION MORE VIABLE Targeting the fact that 40% of the world’s palm oil is produced by

small- to medium sized farmers, BASF and Henkel have collaborated with

development organisation Solidaridad to help make this sector more efficient and sustainable in Indonesia.

T

he biggest questions facing the team on this collaboration project was how to improve things in existing farms without negatively impacting the livelihood of the farmers and also making the whole process more sustainable and eco-friendly.

The quest to improve yields has invariably led to more and more

rainforests being cleared to make way for palm oil plantation, leading to potentially devastating repercussions for the environment. So one of the biggest aims is to maintain the existing footprint of those farms, while still improving yields.

ingredients, while other alternatives such as vegetable oil and coconut oil require far more farming land to reach the same type of yields as palm oil.

Training Indonesian farmers

In recent years, palm oil has come under the microscope because of organisations such as Green Peace, which have fought hard to bring about public awareness of the damage that can be done to the environment through palm oil.

That is why sustainable farming methods, efficient production and high occupational health and safety standards have become some of the most important conditions for certified palm oil production. Smallholders can learn how to fulfill these requirements locally in dedicated training programs.

Palm oil is one of the main ingredients for soaps and liquid soaps, so the cosmetics and personal care industry is a big customer. But palm oil is also one of the most effective

Henkel’s work in this area began in 2015 with a 5-year-project in the Indonesian province of West Kalimantan aimed at meeting all of these objectives.

ASIA PALM OIL MAGAZINE | October - December 2016

THE PLANTER’S CORNER 57

and regular text messages on their mobile phones. The project spans an area of roughly 16,000 hectares.

A more sustainable palm oil industry And earlier this year, BASF joined the effort as an additional industrial partner, while the smallholder program is implemented by Solidaridad in cooperation with its partners Good Return and Credit Union Keling Kumang (CUKK). The Australian non-governmental organization Good Return coaches and supports the teachers who carry out the trainings on the ground and who will continue the farmer support programme after the project ends. The teachers are employees of CUKK, the second largest local credit organization in Indonesia.

Through the project, Solidaridad and its partners want to establish sustainable supply chains for palm and palm kernel oil that both effectively improve smallholders’ living conditions and are eligible for certification according to the criteria of the Roundtable on Sustainable Palm Oil (RSPO).

Of the around 5,500 farmers that will be reached by the project, 1,600 will learn about the different aspects of good agricultural practice (GAP) in direct trainings that include measures for sustainable farming as well as for increasing crop yields. Furthermore, around 3,900 smallholders will be reached not only through a multiplier effect, but also via farmer field days

“We want to change the market to develop a sustainable palm oil industry. To do so, we also need solutions and projects that allow small farms to increase productivity on their plantations – and we are making an important contribution to that by supporting local partners and initiatives,” explained Thomas MüllerKirschbaum, Corporate Senior Vice President in the Laundry & Home Care business unit and Deputy Chairman of Henkel’s Sustainability Council.

“With BASF supporting this smallholder project as an additional industrial partner, we’re sending the signal that we are joining forces to make the palm oil market more sustainable.”

“BASF is one of the largest global manufacturers of ingredients for the cosmetics industry as well as the home care industry and one of the links in the palm oil supply chain from smallholders to end consumers. We believe that we can only find solutions for sustainable, certified palm oil products by working together to preserve the forests and improve the living conditions of the people in the farming areas,” said Jan-Peter Sander,

Senior Vice President at BASF Personal Care Europe.

“That’s why we are collaborating intensively with our customers and suppliers, and also want to involve more smallholders in the dialog.

The project in West Kalimantan is an important step in this direction.”

Higher yields and increased income The productivity of small farms in the palm oil industry is estimated to be 40 percent lower than the average when compared with larger companies.

Measures ranging from farmer trainings to sustainable farming methods are expected to increase palm fruit yields and increase smallholders’ revenue.

“We are delighted that Henkel and BASF are supporting this project in West Kalimantan,” said Marieke Leegwater, program manager palm oil at Solidaridad.

“We think that it is of great interest that companies using palm oil products take responsibility beyond just buying sustainable palm oil, and contribute to investing in more sustainable and inclusive palm oil supply chains on the ground. This project certainly contributes to building such inclusive and sustainable chains, as it is expected to make a significant contribution to improve the livelihoods of independent oil palm farmers in the province of West Kalimantan, one of the poorest regions in Indonesia.”

Source : CosmeticsDesign-Asia

October - December 2016 | ASIA PALM OIL MAGAZINE

58 THE PLANTER’S CORNER

S

DOUBLE WHAMMY FOR OIL PALM PLANTERS IN INDONESIA

pooked by heavy penalties imposed on plantation companies linked to forest fires in Indonesia, oil palm planters are bracing for another round of forest fires given the rising number of hotspots in major oil palm growing areas in recent weeks.

Fire outbreaks in Indonesia, often occurring during the dry season, had caused a serious cross border haze crisis in South-East Asia.

“The annual forest fire has become a major risk factor for Malaysian and Indonesian oil palm planters operating in the republic,” says industry expert M.R. Chandran.

He tells StarBizWeek that Malaysian and Indonesian oil palm companies with large estate holdings and concessions particularly in Kalimantan, Sumatra and Riau are most susceptible to the annual forest fires.

“Many of these planters strictly adhered to the zero burning policy in their plantation management in recent years.

“However, in some incidences the fire actually started outside the boundaries of their plantations but later seen spreading back into these plantations.

“So big oil palm plantation companies do tend to get the bad rap for causing forest fires leading to the haze crisis,” explains Chandran.

During the dry season, oil palm smallholders from Sumatra and Kalimantan would start to slash-andburn as the fastest and cheapest way to clear up their land, which normally are adjacent to the big plantations land bank.

Furthermore, about 20% of oil palm plantations in South-East Asia are planted on peat land, which has high carbon content and can continue to burn under low moisture conditions.

Sumatra, to date, has the largest oil palm plantations planted on peat at about 1.4 million ha, followed by Sarawak at

476,000 ha, Kalimantan at 307,515 ha and Peninsular Malaysia at about 215,984 ha.

Chandran expects big oil palm plantations operating in forest fires prone areas in Indonesia would need to fork out additional costs from RM10 to RM50 per hectare per year depending on the size of their respective hectarage.

This is in addition to the planters’ existing fire prevention budget, estimated at RM110-RM120 per ha for planting on normal land, and 25%-30% higher on peat land.

“Since fire outbreaks are a major risk factor, it would be prudent for plantation companies to also keep a watch on the community land within their own land concessions and surrounding properties and offer the smallholders or farmers some training and assistance in fire prevention.

“In this respect cooperation with local authorities is also essential,” adds Chandran.

On Aug 11, the Indonesian court slapped oil palm planter Sampoerna Agro Tbk with a record fine of 1.07 trillion rupiah (US$81.62mil), the biggest ever to be handed down to a company linked to forest fires.

Meanwhile, the US National Oceanic and Atmospheric Administration (NOAA) said some 97 hotspots have been detected in South-East Asia as of Aug 16 involving 77 in Kalimantan, 16 in Sumatera, 2 in Sabah and Sarawak, and 2 in Peninsular Malaysia, the highest so far in the last 30 days. NOAA warns that the trend is rising.

Sampoerna’s unit PT National Sago was found negligent in relation to forest fires on 3,000 hectares of its concessions in Riau in 2014.

Chandran also says: “Active fires have been spotted in Kalimantan, though mainly confined to KLABAR (West Kalimantan) region at present.

Another planter PT Kalista Alam was also fined 366 billion rupiah in relation to fires in Aceh province last year.

“Reports indicate the region is experiencing dry weather conditions in the past week. Hot spots are also detected in Sumatra though the cause is not known yet.”

So far, only one US$565mil forest fire lawsuit against a pulp and paper firm PT Bumi Mekar Hijau was rejected by the Indonesian court last year. To date, another five lawsuits are being pursued

by Indonesian courts on similar charges.

Even Singapore which suffered the brunt of the forest fires and pollution from the haze crisis is planning to prosecute plantation companies in Indonesia for polluting the air in Singapore courts under the Transboundary Haze Pollution Act. Ironically, some of these plantation companies were also listed on the Singapore Exchange. Thus given the severe penalties imposed on forest fires and the haze, Chandran says: “It is imperative for plantation managers on the ground to be extra vigilant and take all precautionary measures against any fire outbreaks in their operating units.

ASIA PALM OIL MAGAZINE | October - December 2016

The monthly hotspot data indicates that July this year recorded 251 hotspots in total while in August (till Aug 16) so far has recorded 641 hotspots. For comparison, the highest hotspots recorded in August 2015 was recorded 321 in Kalimantan, 5 in Sumatra, 3 in Sabah and Sarawak and one in Peninsular Malaysia on Aug 19, 2015.

According to analysts, the rising number of hotspots has somewhat wiped out anticipation of a full blown wet weather La Nina this year. To date, the recent La Nina probability has receded, now at 58%, versus 65% in mid-June. “Only two of eight climate models exceed La Nina thresholds for an extended period, which could mean that if La Nina does develop, it would most likely be weak,” says RHB Research.

Source : FoodNavigator.com

60 THE PLANTER’S CORNER

OIL PALM PLANTING ON PEAT SOIL HANDLED WELL, SAYS UGGAH

T

he government handles oil palm plantations on peat soil responsibly through all means and approaches to help mitigate climate change and sustain the farmers’ economy.

Deputy Chief Minister Datuk Amar Douglas Uggah Embas said the planting of oil palm on peat soil was done responsibly based on the industry practices.

“Many NGOs have said that oil palm should not be planted on peat soil, that peat soil should be left as it is to save the world from climate change.

“We hope through this congress they (NGOs) would begin to understand how we work,” he said in response to questions from reporters at a dinner for participants of the 15th International Peat Congress here on Wednesday.

The congress general Dr Lulie Melling was also present.

In spite of numerous scientific documents and statistics on socioeconomic benefits of the palm oil industry, there were still those who choose to continue to denigrate it.

“I am confident that after this congress, you will understand that all those anti-oil palm voices are mere propaganda, baseless and largely a refection of their ignorance of the actual situations in Malaysia, especially Sarawak,” Uggah said.

“Being endowed with biodiversity, we are equally committed to save this planet, while discharging our duty to bring development to our people, especially in rural communities.

Uggah, who is also Minister of Modernisation of Agriculture and Rural Economy, said the government’s development policy was guided by the

ASIA PALM OIL MAGAZINE | October - December 2016

three principles of people, profit and planet.

“It includes the need to balance development of peat land with conservation,” he said.

“Thanks to Dr Lulie and her team for a job well done for they have explained to the world how our crop is grown responsibly during this congress,” he added.

Uggah went on to say that many countries sending participants to the congress have showed their interest in the state’s peat soil management for the plantation industry.

He also said that there was a reduction in hot spots in the state based on a mechanism used to control peat soil fires.

“Tube wells have been implemented in Kuala Baram to mitigate peat fires by bringing up water and another approach is compaction,’ he said.

Source : Borneo Post

Haulage

Plantation Maintainance

Crop Care

Oil Palm Farming, Moving forward with mechanization

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62 THE PLANTER’S CORNER

BREAKTHROUGH FOR SMALL PALM OIL GROWERS

H

undreds of small-scale palm oil farmers in Indonesia have won the right to export their crop with certification from a global sustainability body, boosting their chances of raising profits and incomes, an industry umbrella group said last week.

The Roundtable on Sustainable Palm Oil (RSPO), an umbrella organization for growers, traders and environmental campaigners said 2,700 independent farmers received the approval making them the world’s single largest group ever to be certified.

“The ability to produce sustainable [palm oil] not only will improve our livelihood but also helps link us to the global sustainable market,” said Amin Rohmad, one of the independent smallholders based in the province of South Sumatra.

Despite producing less oil per hectare than larger multinational firms, smallholders account for about 40 percent of the world’s palm oil output, the RSPO said.

But the system of certification has

often been too costly and complex for them to navigate, campaigners say, with the sector coming under fire for its impact on land rights and the environment.

The world’s biggest palm oil producing countries, Indonesia and Malaysia, have been pressured to address environmental concerns as “slash and burn” forest fires cause parts of Southeast Asia to become shrouded in haze every year.

Palm oil, used in everything from chocolate to cosmetics, has become one of the world’s fastest expanding crops. But pressure over deforestation and methods used to clear land has driven many buyers ‒ and consumers ‒ to demand certification of environmentally sound behavior.

The RSPO has in turn stepped up pressure on the biggest growers, with some accused of illegally planting the crop on protected areas.

In April it withdrew Malaysian plantation giant IOI’s “sustainability certification” after allegations the company had illegally chopped down rainforests in Indonesia and planted

ASIA PALM OIL MAGAZINE | October - December 2016

palm crops on peat land.

But earlier this month, it said IOI, one of the world’s leading palm producers and traders, had satisfied conditions for the suspension to be lifted, a move that has sparked sharp criticism from environmental groups.

The consortium of 2,700 newly certified Indonesian smallholders won the status in June this year with support from Wilmar, a Singaporebased agribusiness firm specializing in palm oil, an RSPO spokesperson said.

“It is crucial for companies, NGOs and governments [to] continue promoting smallholder inclusiveness and capacity building, so that they can achieve RSPO certification,” said Julia Majail, smallholder program manager at RSPO. To date the RSPO has helped more than 100,000 individual smallholders gain certification and helped to forge partnerships between smallholders, NGOs and the private sector, the industry body said in a statement.

Source : Thomson Reuters Foundation

64 EVENT HIGHLIGHT

OILS & FATS INTERNATIONAL CONGRESS (OFIC) 2016 established speaker on oils & fats trade.

Other aspects of the Economic and Price Outlook cover the Indian scenario and Indonesian scenario. The Module of Trade Policy and Politics includes “Trade Challenges & Opportunities for Malaysian Palm Oil” by MITI (Ministry of International Trade & Industry) and Biodiesel Trade Policy.

O

FIC 2016 has a number of attractions to Traders and Members of the Oils and Fats Industries including the Malaysian and Indonesian Palm Oil Industries. The Minister of Plantation Industries and Commodities, YB Datuk Seri Mah Siew Keong will officiate the event with a keynote address, later supported by a senior officer of MITI and Mr Dorab Mistry, an eminent and

Further, participants have the opportunity to network with 13 world leaders in oils and fats trades from the following countries:• USA • Korea • France • Latin America • Canada • Germany

• Australia • Egypt • China • India • Czechoslovakia • Argentina

For those who want to be updated on advances in science and technology

have the privilege to meet the speakers from the University of Cambridge United Kingdom, Massachusetts Institute of Technology USA, China, University Science Malaysia. These are only some of the highlights.

You are invited to register immediately for this International Congress with the theme “Global Trends in Oils & Fats: Pathways to 2025” organised by MOSTA in collaboration with ISF (International Society for Fat Research) and MPOB (Malaysian Palm Oil Board).

Don’t miss this golden opportunity!

With ward regards Academician Emeritus Prof Tan Sri Datuk Dr Augustine S H Ong President, MOSTA Chairperson , OFIC 2016 Organising Committee

REGISTER NOW

WASTE TO ENERGY AND BIOGAS THAILAND FORUM 2016 24-25 NOVEMBER 2016 | EASTIN GRAND HOTEL, SATHORN BANGKOK, THAILAND

Organised by:

Supporting Partner

Conference Sponsors:

ASIA PALM OIL MAGAZINE | October - December 2016

ICESN

Tel: +65 6506 0951 | Fax +65 6749 7293 | Email: info@icesn.com | www.icesn.com/biogas-thai2016/

Final Announcement

OFIC 2016 TM

AND INTERNATIONAL SOCIETY FOR FAT RESEARCH 2016

GLOBAL TRENDS IN OILS & FATS: PATHWAYS TO 2025 19-21 OCTOBER 2016 HOTEL ISTANA, KUALA LUMPUR MALAYSIA

Organised By:

Malaysian Oil Scientists’ and Technologists’ Association www.mosta.org.my

Silver Sponsors:

In Collaboration with:

Supported by:

International Society for Fat Research

Bronze Sponsors:

Media Partner:

Official Airline

66 EVENT HIGHLIGHT

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The opening ceremony of SIMA ASEAN 2016

SIMA ASEAN THAILAND 2016: THE BUSINESS PLACE FOR THE WHOLE REGION!

The 2nd edition of SIMA ASEAN, held from 8 to 10 September 2016 at the IMPACT Exhibition & Convention Center, Bangkok, Thailand, proved to be a resounding success. Attracting 13,000 visitors from various countries and covering

an exhibition space of nearly 21,000 sqm, including indoor and outdoor areas, the second SIMA ASEAN lived up to its promise as the most international and extensive agri-business event in Southeast Asia.

A USEFUL AND EFFECTIVE PLATFORM

that combines power, fuel economy and ultimate versatility. This is why the

onsidered by its exhibitors as a strategic platform to connect and develop their businesses, SIMA ASEAN Thailand 2016 attracted 300 leading brands and companies worldwide including renowned brands such as New Holland, Case IH, CLAAS and Yanmar.

SIMA ASEAN is an important exhibition for us and it’s the reason we decided to support the show this year’s Platinum Sponsor” – Mr. Mark Brinn, Managing Director CNH Industrial SEA, Japan and Pakistan.

C

“SIMA ASEAN is the perfect place to get to know our customers and for our customers to discover our products and the New Holland and Case IH quality. We had an opportunity to launch the TT4.90 tractor at the SIMA ASEAN 2016, extending the successful TT4 Series, which now includes 5 models ranging from 55 to 88 hp. The new model fits at the top of the range, offering an even bigger performance

“For us, it’s very important to provide the information about our products to our international customers, especially from the Southeast Asia region. For this purpose, we think SIMA ASEAN Thailand 2016 is the good platform to attract international visitors and also gives us the opportunity to present our high technology products in our line-up especially to serve the sugar cane residue management with our big bailer. What we really appreciate for this year, SIMA ASEAN not only have

ASIA PALM OIL MAGAZINE | October - December 2016

indoor exhibition but also have outdoor exhibition and demonstration area and for this give us more opportunity to showcase our machinery with the real working environment.” – Mr. Benjamin S. Punyaratabandhu Bhakdi, Regional Director, CLAAS Regional Center South East Asia Ltd. SUCCESS FOR THE NEW DEMONSTRATION AREA For this second edition, SIMA ASEAN presented real-live demonstrations on 2 hectares of outdoor area. The exhibitors such as CNH, Yanmar, Claas, Chokchai Agricultural Machinery Co. or Echo were able to highlight their equipment and machinery in action on the 4 major crops of the region (Rice, Cassava, Sugar Cane and Napier Grass) planted for the event at the Lakeside Mueang Thong Thani.

67

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Overwhelming feedback from informative seminar

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The opening ceremony of SIMA ASEAN 2016

THAILAND, THE AGRICULTURE HUB OF SOUTHEAST ASIA “For SIMA ASEAN Thailand, we are focusing on innovation & sustainability which are the key fundamentals to develop agricultural sectors in the region. We need to, not only show new technologies and innovations but also to apply new thinking to build up the new ideas forward for farmers. Only then, can we begin to build a sustainable, positive, and inclusive agri-business industry not only in Thailand but also within the ASEAN Community.” said Valérie Lobry-Granger, General Manager of the Agriculture equipment, Food, Construction, and Optics (AFCO) at Comexposium, at the opening ceremony in the presence of Mrs. Jintana Chaiwannakarn, Vice Minister of the Ministry of Agriculture and Cooperatives.

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Product presentation

Thus, another success for SIMA ASEAN, whose next edition will take from 7th to 9th September 2017 at the IMPACT Exhibition & Convention Center, Bangkok, Thailand.

October - December 2016 | ASIA PALM OIL MAGAZINE

68 FBI IN ACTION

4TH OLEOCHEMICALS OUTLOOK MEET IN BALI DISCUSSES SUSTAINABILITY & CHALLENGES FACED BY INDUSTRY TODAY CMT’s 4th Oleochemicals Outlook returns to Bali on 23-24 August. This not-to-be-missed event

brings together key players and industry majors from the oleochemical value chain to share the latest news and developments in the industry.

“Overcapacity, Boon or Bane for the Oleo Industry?”

Confronted by double adversity from slow economic growth and overcapacity in the regional oleo industry with mega plants coming to steam producers are urged to be business smart in these challenging times! Malaysian Investment Development Authority’s (Mida) Chief called on oil palm companies and SMEs to seize opportunities in the oleo derivatives industry, which offers higher margins in the long run.

With the current volatility in crude oil price, how sustainable are the B20 biodiesel program in Indonesia and B10 program in Malaysia? What are the opportunities & impact on the industry?

CMT’s 4th Oleochemicals Outlook returns to Bali on 23-24 August. This not-to-be-missed event brings together key players and industry majors from the oleochemical value chain to share the latest news and developments in the industry.

ASIA PALM OIL MAGAZINE | October - December 2016

FBI IN ACTION 69 Topic Highlights Include: • • • • • • • • • • • •

Global economic performance and currency trends How are natural alcohol producers surviving despite volatile crude and expensive Lauric oils?

A comparison of the Asian Oleo market with Europe and USA Sustainable and strategic sourcing strategy, including RSPO certified materials and traceability challenges Is the RSPO sustainable? Can the momentum be maintained?

Updates on palm oil market trends Growth potential of bio-lubricants and novel technologies Fatty acids and fatty alcohols industry development in China The development of private label personal care products in India Identifying non-traditional opportunities in a volatile crude oil price environment Biodiesel industry development trends & Glycerine market direction Safflower oil as an alternative feedstock for the oleochemicals industry

Speakers at the 4th Oleochemicals Outlook • • • • • • • • • • • • • •

Mr. Nobuhiko Masui, Director - Procurement, Raw Materials, Commodities, Kao Corporation Mr. David E. Sumual, Chief Economist, Bank Central Asia Dr. Caroline Midgley, Director of Biofuels and Biochemicals, LMC International Mr. Chris DeLavigne, Principal – Strategy, KPMG Services Ir. Qua Kiat Seng, Advisor, ASEAN Oleochemical Manufacturers Group (AOMG) Mr. Dadan Kusdiana, Director, Indonesia Estate Crop Fund Agency Mr. Shashank Sukumaran, Louis Dreyfus Company Mr. Allen Barbieri, CEO, Biosynthetic Technologies Mr. Mohamad Fadhil Hasan, Executive Director, Indonesian Palm Oil Producers Association (GAPKI) Dr. Hirzun Mohd. Yusof, Vice President I, Integrative and Applied Biology, Sime Darby Technology Centre Mr. Sovakar Nayak, Vice President, Palms Resources Mr. Leo Liu Xuejun, General Manager, Shanghai Bailey Oils & Fats Co. Mr. Pradeep Kumar, Sr. Executive Vice President, Kräuter Healthcare Limited, AKC Group Mr. Trevor Gawne, Director, GO Resources

October - December 2016 | ASIA PALM OIL MAGAZINE

70 FBI IN ACTION

SUSTAINABILITY TAKES CENTER STAGE AT 8TH ASIA SUSTAINABLE OIL PALM SUMMIT YOGYAKARTA

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he 8th ASIA Sustainable Oil Palm Summit, 4-5 Aug, Yogyakarta - In light of Indonesia’s clamp down on new permits for palm oil plantation, how will Indonesia maintain its competitiveness while maintaining sustainability? What are the steps being taken to restore peatland, and what are the challenges involved?

CMT brings you the 8th ASIA Sustainable Oil Palm Summit, where current issues grappling the palm oil industry will be discussed by palm oil producers, traders, consultants and researchers.

Palm oil is the world’s most widely used vegetable oil, found in food, cosmetics, detergents and biodiesel. Over 90% of the world’s palm production takes place in Southeast Asia.

With global consumption of palm oil increasing at a rapid rate, farmers are using up more and more forestland to keep up with demand, and contributing to tropical deforestation and peatland destruction.

Fires often started to clear land for oil palm plantations release greenhouse gas emissions and impacts global climate change.

Since land is getting scarce, palm oil production needs to be about improving output – for example by planting high-yield crops – without destroying forests and peatland.

ASIA PALM OIL MAGAZINE | October - December 2016

FBI IN ACTION 71 The 8th ASIA Sustainable Oil Palm Summit will cover the

groundbreaking sustainability measures being taken in the region including: •

•

• •

•

•

Indonesia is proposing a ban on new oil palm concessions to lessen the sector’s impact on the environment. The ban will help to increase the adoption of sustainable practices and force farmers to source for quality seeds and fertilisers and to improve their farming skills.

Malaysia Palm Oil Board (MPOB) will share their research on improving palm oil production yield, by checking the integrity of the seeds before planting begins on a large scale. Instead of acquiring more land, the focus will on boosting the productivity of crops, which could be doubled with better seeds.

Indonesia’s Peatland Restoration Agency (PRA) has been tasked to restore about 2 million hectares of carbon-rich peatland damaged by fires last year.

Plantations are now using drones to monitor progress and increase efficiency in high-yield palm oil production, while the development of software tools can help small holders increase their yield.

Pest control, such as Red Palm Weevel infestation remains a concern. And although bud rot disease is more extensively prevalent in Latin America, the threat of it coming to Asia is real. The disease would be even more fatal in Malaysia and Indonesia, and has the ability to destroy the palm oil industry in the region.

The Indonesian Palm Oil Pledge (IPOP) is a partnership of the large palm oil companies that control the bulk of Indonesian palm oil refining, who have promised to eliminate deforestation, peatlands conversion and human rights abuse from their supply chains. Under the IPOP, Palm oil companies will be encouraged to share their expertise and provide assistance to small farmers to increase their palm oil yield and ensure a sustainable livelihood.

Speakers at the 8th ASIA Sustainable Oil Palm Summit, 4-5 Aug, 2016 – Yogyakarta are: • • • • • • • • • • • • • • • • •

Agus Purnomo, Managing Director, Sustainability and Strategic Stakeholder Engagement, Golden Agri International Pte Ltd (“GAR”) Dr. Alue Dohong, Deputy of Construction, Operations, and Maintenance, Peatland Restoration Agency Prof. Dr. Bambang Hero Saharjo, Bogor Agricultural University David Ng, Derivatives Products Specialist, Philip Futures Sdn Bhd Dr. Agus Santoso, Adjunct Science Leader, CSIRO Keeyen Pang, Director of Asia Operations, Conservation Drones Rajinder Singh, Principal Research Officer/ Group Leader - Genomics Research, Malaysian Palm Oil Board (MPOB) Dr. Indra Syahputra, Head of Socfindo Seed Production & Labs, PT Socfindo Nurdiana Darus, Executive Director, Indonesia Palm Oil Pledge Pierre Courtemanche, CEO, GeoTraceability Ltd Jagdish Parihar, Managing Director & Chief Risk & Compliance Officer, Olam International Limited Dr. Sudjoko Harsono Adi, Director of Bioenergy, Ministry of Energy and Mineral Resources (MEMR) Jeroen Nanninga, Country Manager - Indonesia, Westpac Banking Corporation Dr. Ainie Kuntom, Senior Research Fellow, Product Devt & Technical Advisory Services, Malaysian Palm Oil Board (MPOB) Dr. Wahizatul Afzan Azmi, Scientist -Entomology Red Palm Weevil Research Grp, Universiti Malaysia Terengganu Dr. Gabriel Andrés Torres, Plant Pathology, Cenipalma - Centro de investigación en Palma de Aceite Stephen Lim, Chief Operating Officer, Global Green Synergy Sdn. Bhd

October - December 2016 | ASIA PALM OIL MAGAZINE

72 FBI IN ACTION

A SUCCESSFUL PALM OIL EXHIBITION AND TECHNOLOGY. THE 6TH PALMEX THAILAND 2016 IS THE THAILAND’S LARGEST PALM OIL EVENT!

»

Great to have senior executives from Malaysia Palm Oil Board (MPOB), Thai Oil Palm & Palm Oil Association, and the governor of Suratthani at FBI booth during Palmex Thailand 2016.

F

ireworks Media Thailand Co., Ltd has held up the 6th edition of Plamex Thailand 2016, 18-19 August 2016 at Co-op Exhibition Centre, Suratthani, Thailand. This event was extremely successful which gather both upstream and downstream in palm and palm oil industry to join together such as industrial factory, researchers, engineer, academics, entrepreneurs, agriculturists and etc. In addition to technology and exhibition zones, then there are also technology seminars and Asia Palm Oil Conference (APOC) that provided interesting international topics in palm oil industry, updated the latest information and new technology to consistent with the world markets.

For those interested can participate in Plamex Thailand 2017 that will be hold at August 17-18 2016 at Co-op, Suratthani. Contact for more information at www.thaipalmoil.com, www.palmoilconference.com, thai@asiafireworks.com, call (+66) 2 513 1418.

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The opening ceremony of Palmex Thailand 2016.

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Exhibitors and visitors in discussion.

ASIA PALM OIL MAGAZINE | October - December 2016

Palm Oil Events List 2016/2017 PALMEX Indonesia 2016 date : 4th - 6th October 2016 venue : Santika Premiere Dyandra, Hotel & Convention, Medan Indonesia web : www.palmoilexpo.com email : info@asiafireworks.com PALMEX Latin America 2016 date : 30th November - 1st December 2016 venue : Puerta de Oro, Centro de Convenciones del Caribe, Atlantico, Columbia web : www.palmoilcolombia.com email : colombia@fireworkssa.com PALMEX Philippines 2017 date : 27th - 28th April 2017 venue : SMX Convention Center Davao, Davao, Philippines web : www.palmoilphil.com email : phil@asiafireworks.com

MAPEX 2017 (Malaysia Palm Oil Expo 2017) date : 18th-20th July 2017 venue : Sandakan Community Hall, Sabah, Malaysia web : www.asiapalmoil.com email : info@nrg-expo.com Riau Palm Oil Expo 2017 date : 26th-27th July 2017 venue : SKA Co Ex (Swiss-bel Hotel SKA Pekanbaru), Pekanbaru, Riau, Indonesia web : www.riaupalmoil.com email : info@asiafireworks.com

T H A I L A N D

2017

PALMEX Thailand 2017 date : 17th-18th August 2017 venue : CO-OP Exhibition Centre, Surat Thani, Thailand web : www.thaipalmoil.com email : thai@asiafireworks.com

Language

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Tel : +603-7493 5947 Fax : +603 7493 5977 Website : www.asia-palmoil.com

76 ADVERTISER INDEX

ADVERTISER INDEX PAGE ADVERTISERS 17 12 59 61 37 39 35 45 57 11 53 23 65 25 29 13 INSERT CARD 15 63 IBC 41 73 21 19 05 71 64 3/ IFC/ OBC

BUCHI Malaysia Sdn. Bhd. CHEP Pallecon Solutions (Malaysia) Sdn Bhd CNH International Eurostar Tractors (M) Sdn Bhd EXERGY S.p.A Felda Palm Industries Sdn Bhd Green Lagoon Technology Sdn Bhd HA-US Santrifuj Teknolojileri SanTic Ltd Sti International Biomass Conference Malaysia Jasa Aman Engineering Sdn Bhd (Prime Steam Turbine) JCB South East Asia JJ-Lurgi Engineering Sdn Bhd Kejuruteraan Wang Yuen Sdn Bhd Malaysian Palm Oil Board (MPOB) Mastech City Engineering (M) Sdn Bhd Minsec Engineering Services Sdn Bhd Muar Ban Lee Engineering Sdn Bhd Nantong Ant Machinery Co. Ltd OFIC 2016 Oiltek Sdn Bhd Orion Biosains Sdn Bhd PALMAG Advertising Sefar Fabrication (M) Sdn Bhd Sime Darby Offshore Engineering Sdn Bhd Taner Industrial Technology (M) Sdn Bhd The Palm Oil Refiners Association of Malaysia (PORAM) Waste to Energy and Biogas Thailand Forum 2016 YKL Engineering Sdn Bhd

WEBSITE www.buchi.com www.chep.com/pallecon www.newholland.com / www.cnhindustrial.com www.eurostartractors.com www.sebigas.com feldaglobal.com www.glt.my www.haus.com.tr http://biomassconference.mida.gov.my www.jasaaman.com www.jcb.com www.jj-lurgi.com kwy@wangyuen.com (E-mail) bit.ly/254ziX mastechcity@mastechcity.com (E-mail) minsec-enquiry@my.wilmar-intl.com www.mbl.com www.antcn.cn www.mosta.org.my www.oiltek.com.my www.orionbiosains.com www.asia-palmoil.com www.sefar.com www.simedarbyindustrial.com www.taner.com.my www.poram.org.my www.icesn.com/biogas-thai2016/ welcome.yklgroup.com.my

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THAILAND | Fireworks Business Information Promphan 2 Office & Residence, 8th Floor (Office Zone, Room 807) 1 Soi Lat Phrao 3, Lat Phrao Road, Jompol, Chatuchak, Bangkok 10900 Tel: (+66) 2513 1418 Fax: (+66) 2513 1419 Email: thai@fireworksi.com

SINGAPORE | Fireworks Business Information 14 Robinson Road #13-00 Far East Finance Building Singapore 048545 Tel: (+65) 3152-0252 Fax: (+65) 3152 0253 Email: sg@asiafireworks.com

INDONESIA | Fireworks Business Information The Central 88 Kemayoran. Komplek Kota Baru, Bandar Kemayoran Blok D No 308. Jakarta Utara 14410, Indonesia Tel: (+6621) 2605 1028/ 2605 1029 Email: info@fireworksbi.com

ASIA PALM OIL MAGAZINE | October - December 2016

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