Rainforest dies for your cattle feed, NZ farmers warned

Kim Knight, Sunday Star Times, Stuff.co.nz 23 Aug 09;

Dairy farmers have been implicated in a new palm oil scandal after revelations that last year the national herd ate one-quarter of the world's palm kernel stock food supply.

More than one million tonnes of palm kernel expeller (PKE) was imported last year, mostly from Indonesia and Malaysia, where environmental groups are concerned at the palm industry's role in the loss of tropical rainforest and destruction of tiger and orang-utan habitat.

An international body, the Roundtable on Sustainable Palm Oil, has been set up to ensure sustainable supply of palm product, but secretary-general Dr Vengeta Rao said last week that "very little" of what entered New Zealand would have been certified.

His comment follows Cadbury's decision to back down on plans to introduce palm oil to its Dairy Milk chocolate, after a public outcry.

PKE is created when palm fruit is crushed and processed to produce palm kernel oil. Based on figures provided by the roundtable, a maximum 330,000 tonnes of PKE on the global market since last August could be considered certified. This country imported 1,104,387 tonnes, putting our consumption rates second only to the combined 27 countries of the European Union.

Two weeks ago, the Sunday Star-Times travelled to Indonesia with Greenpeace communications manager Suzette Jackson and Waitakaruru farmer Max Purnell to see, first hand, the impact of this trade that the Ministry of Agriculture and Forestry says has increased one thousand-fold since 2000.

We spoke to community leaders who said they had been jailed in their fight to keep land from palm companies, and conservationists who feared for the future of animals such as the Sumatran orang-utan.

"Not only is this trade damaging to the environment on the ground here, it's also really damaging to how we are trying to portray ourselves internationally, as a country that does care, that does give a damn, and wants to live up to what we trade on our clean, green identity," said Jackson.

Farmers argue the spike in imports was due to last year's devastating drought and the need to provide supplementary feed. But, says Jackson, "the figures have climbed really steadily over the past 10 years. Drought has a little bit to do with it, but the major reason this increase has come about is through the intensification and corporatisation of New Zealand's dairy sector."

Purnell said he had witnessed the "systematic, deliberate, studied rape and desecration of land and the local people's ability to have a future with it". He believed that if dairy farmers knew the potential impact of the PKE trade, they would find alternatives.
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Hew Dalrymple, Federated Farmers' grain and seed section vice-chairman, said there were serious biosecurity concerns about PKE. "There are threats from imported insects, risk from soil contamination and foot and mouth disease and food safety issues... with that amount of product coming into the country, shipload after shipload, it is a real biosecurity issue for us."

Lachlan McKenzie, Federated Farmers' dairy chairman, said farmers needed supplementary feed during last year's drought, and PKE was just a by-product. "The palm is grown for oil, not its by-product. This is the husk that is left after the oil is taken out... palm oil is the prime driver of this."

He said it was up to importers, not farmers, to ensure the product was being sustainably produced.

Biosecurity and Agriculture Minister David Carter said the government recognised the importance of New Zealand's reputation and image in world markets, and the dairy industry was aware of the need to improve sustainability.

"It has made significant progress on sustainability in recent years, for example the Dairying and Clean Streams Accord and recent work on greenhouse gas footprinting."

The emergence of the palm kernel issue, Carter said, "reinforces the importance of the dairy industry continuing to work on its sustainability".

Fed Farmers fight off palm kernel criticism
tvnz.co.nz 24 Aug 09;

Federated Farmers is rejecting claims that the importation of palm kernel extract for dairy feed is contributing to the destruction of rainforests.

Dairy giant Fonterra is being accused of buying cheap cow feed at the expense of the environment.

Greenpeace says Fonterra imported a quarter of the world's palm kernel based animal feed for New Zealand cows last year.

Greenpeace says rainforests in Indonesia and Malaysia are cleared to produce cheap palm oil.

But Federated Farmers says the kernel is a waste product and the real cause of deforestation is consumer demand for palm oil based products.

Federated Farmers says it is more concerned by the biosecurity risks of the huge amount of uncertified palm kernel entering New Zealand.

Meanwhile, the Green Party is calling on the government and Fonterra to reduce the importation of palm kernel feed.

Palm kernel imports went from 0.4 tonnes in 1999 to 455,000 tonnes in 2007 and then to 1.1 million tonnes in 2008.

Green Party co-leader Russel Norman Norman says this was a quarter of all global palm kernel production which threatened not only the local grain industry but New Zealand's environmental reputation.

He says the government and Fonterra, which part owns rural supply chain RD1, had to do something to stop the "addiction" to the cheap but unsustainable palm kernel, which was being used to prop up unsustainable dairy farming.

Greenpeace NZ climate campaigner Simon Boxer also said it was a "scandal" that Fonterra was feeding its dairy cows a product that was directly contributing to the destruction of the world's remaining rainforests - and climate change.

Wilmar International, the company supplying kernel to RD1 to sell, was the world's largest trader of palm oils and kernel and had a bad reputation for rainforest destruction, he said.

But Fonterra sustainability manager John Hutchings told Radio New Zealand Wilmar International was a reputable company.

"They've been working very hard to ensure that all of their mills and plantations are RSPO - Round Table on Sustainable Palm Oil - certified, and they have almost completed that task."

Hutchings said palm kernel was an important feed supplement when grass was in short supply.

Last week chocolate maker Cadbury bowed to public pressure and removed palm oil from its chocolate recipe.