 Delivering a paper entitled “Marketing Certified Palm Oil” at the 2nd International Palm Oil Trade Fair and Seminar 2008 organized by the Malaysian Palm Oil Council in Kuala Lumpur recently, Syed Mahdhar Syed Hussain of the largest oil palm planter in the world said: “marketing certified palm oil is a new challenge in the palm oil industry.”
A complex combination of poor harvests, higher energy prices, surge in global demand and falling food stockpiles has resulted in a global food crisis. These food-price increases combined with soaring energy costs will slow if not stop economic growth in many parts of the world.
Bearing this in mind, says Syed Mahdhar: “We need to invest in sustainable development in order to achieve true global security and economic growth. And this responsibility has to start now with the current generation. Plant the seed today for the future”.
“Ultimately, practicing RSPO Certification coincides with Sime Darby’s sustainability initiatives,” he continues. Pointing out that Sime Darby had already been fully committed to plantation best practices, compliance to legal requirements, biodiversity enhancement, social responsibilities and seeking continuous improvements, well before RSPO, Syed Mahdhar said that such stringent adherence to sustainable planting can only result in a price premium and global recognition for Sime Darby’s and Malaysian palm oil!
However, problems remain. “The ultra stringent RSPO Certification principles and criteria will add at least 10% to the cost of production and may well prove an impediment to smallholders”, says Syed Mahdhar. The principles are:
Principle 1: Commitment to Transparency
Principle 2: Compliance with applicable laws
Principle 3: Economic and Financial Viabillity
Principle 4: Best Practices
Principle 5: Conservation of Natural Resources and biodiversity
Principle 6: CSR
Principle 7: Responsible new plantings
Principle 8: Continuous Improvement.
Some of the issues and challenges highlighted by Syed Mahdhar includes the buffer zone and slope protection. Pointing out that Sime Darby avoids planting on slopes of more than 25 degrees and preserves a riparian buffer zone of 50 meters in all their plantations, he wonders how the smallholders would be able to comply.
Conversely, he observes that the requirement for boundary stones would not have any impact on smallholders but it would certainly pose problem for a large-scale planter like Sime Darby as their plantations could stretch for 14 hectares and some of the boundary stones could have disappeared by the 3rd or 4th replanting.
Relating Sime Darby’s sustainability initiatives and traceability experience, Syed Mahdhar pointed out that Sime Darby managed to work closely with their customer< Unilever in June 2007 and successfully shipped 13,000 metric tones of certified sustainable palm oil on 16th February 2008 to Rotterdam. The supply chain option selected by Sime Darby uses the claim process on Mass Balance of 70:30 ratio as the company is committed to receiving 30% (maximum) fresh fruit bunches from smallholders as part of Sime Darby’s CSR initiatives.
Deforestation Watch is pleased to note Sime Darby’s sustainability initiatives include the provision of support to the Ulu Segama Rehabilitation Program with the Forestry Department in Sabah, Malaysia, the Planting of Endangered, Rare and Threatened Tree Species with Tunas Harapan, a Malaysian based Conservation organization and the Conservation of the Hornbill at the Belum Temmengor Forest together with the Malaysian Nature Society as well as a Gender Development Policy Program with TEGANITA, a women’s development and protection program in Malaysia. THE END. |
