Grappling with attack on issues from deforestation to labour exploitation, and the violation of indigenous people’s rights ,  palm oil companies have been investing heavily in technology to boost their sustainability credentials.

“A key challenge for the palm oil trade is increasing yield productivity per unit area, and companies have been working on technologies that work throughout the production chain, from planting materials to finished product.”

~ Eco-Business Wednesday 13 February 2019

However, smallholders produce 40% of the world’s palm oil - Without engaging them with the tools, the impact and effectiveness of technologies are restricted.

Palm oil buyers are increasingly demanding their oil to come from non-deforested or burned land. How can block chain technology be applied to tackle traceability which is one of the industry’s biggest challenges ?

Malaysia plans to halt all expansion of oil palm plantations this year as it seeks to dispel the oil’s reputation as a driver of deforestation.

~ 1 March 2019 Bloomberg

The recent moves by EU in boycotting palm oil realistically does nothing to protect the Southeast Asia’s rainforests.  In a tit for tat, Indonesia & Malaysia has recently retaliated with a threat to ban European goods as palm oil row escalates . This means that both countries will gradually lose its grip on the EU market ( the world’s 3rd largest consumer of palm oil ).

Is palm oil boycotting really the answer to solve deforestation ?

Boycotts only affects  the smallholders and it leaves them with no options except  to burn that palm oil off, or move into new areas, and those new areas are likely to be forests.

It is noted that the European Commission will allow a number of exceptions from producers who could certify that  they had intensified yields without needing expansion onto non-agricultural land.

So if certification is the answer , is there a market for certified palm oil ?

Sime Darby, which produces 98% of its palm oil RSPO certified comments that big buyer markets such as China and India are not as concerned about sustainability as markets such as the EU. According to Dr Simon Lord, their Chief Sustainability Head, 50 per cent of the oil that they produce—all of which is certified sustainable—actually isn’t sold as sustainable palm oil.

Seedlings of the CPS2, variety are being rolled out by MPOB in response to a labour shortage and the shrinking availability of land for new plantations.

The dwarf trees are clones of a new variety bred to be 30 per cent smaller than regular oil palms when they mature.

According to Dr Melina Ong Abdullah who heads the breeding and tissue culture unit  CPS2's shorter fronds enable farmers to plant as many as 36 per cent more seedlings in a hectare without reducing yield quality at the same time , it makes harvesting safer and more efficient.

About 10 per cent of fruit bunches rot each season because of a labour shortage and lack of skilled workers who can cut down fruit from older, taller trees, according to industry estimates.

Attend the 11th ASIA Sustainable Oil Palm Summit and participate actively in discussions that are evolving rapidly in the industry.

KEY HIGHLIGHTS: 

• The Indonesian palm oil industry – staying resilient to market challenges
• Positioning of CPO vs other edible oils – implications of current political trends, soybean trade and sustainability
• Malaysia’s B10 biodiesel program  – making it work
• 3 -MCPD and GE challenge – what is Indonesia’s stance and concerns?
• New clonal palm series 2 variety – a sustainable solution to maximising land use & labour shortage
• GAP using drone monitoring and big data analytics
• Applying block chain technology to enhance palm oil traceability 
• Becoming sustainable through operational process digitalisation & organisational development
• Supplier group mapping program – stepping up efforts for deforestation free palm oil supply chains
• Sustainable practices on integrating cattle breeding into palm oil plantations
• Coconut making a comeback
• Comparing all certification standards (RSPO, ISPO & MSPO) & latest updates related to absolute requirements for obtaining the certificate
• Optimising value of palm oil waste
• Converting palm oil waste into high value added chemicals
• Sustainable palm oil cultivation in Sri Lanka & potential growth outlook
• A smallholder’s perspective on its journey to being certified