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CSPO demand to rise on the account of EU’s impending food labelling rule, says Sime Darby

Posted on : 14 Jul, 2014

 

Certified Sustainable Palm Oil (CSPO) is expected to witness a rise in demand by at least 25% according to Sime Darby Bhd. The expected growth will be stimulated by European Union's food labelling rule that requires food manufacturers to specify the vegetable oil used in their food products and the rule is approaching its 2015 deadline.

 

CSPO will gain a competitive advantage with this rule because CSPO scores well on certified good agricultural practices, social responsibility and environmental engagement.

Sime Darby explains that although Europe drives the current demand for CSPO, it is only for palm stearin - the solid part of palm oil that is widely used in food products.

But palm stearin only represents 20% of the palm oil volume, while palm olein (the liquid form) represents the remaining 80%.

Moreover, there is a gap between supply and demand for CSPO because of a number of challenges. Logistical complexity of the palm oil supply chain, lack of awareness about how and where industry can find CSPO and its derivatives in individual markets, and low consumer awareness are some of the factors leading to low demand. Moreover, China and India - two of the top consumers of palm oil, aren't promoting the use of CSPO.

More on CSPO will be discussed when stakeholders meet at 6th Palm Oil Asia Summit opening on 13-14 August, 2014, in Jakarta.

 

Visit 6th Palm Oil Asia Summit website for more details or contact Ms. Hafizah at hafizah@cmtsp.com.sg or call +65 6346 9218.

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