Anti-Palm Oil Campaign Unlikely To Have Immediate Impact On Exporters

D. Arul Rajoo, Bernama 29 Sep 09;

BANGKOK, Sept 29 (Bernama) -- The anti-palm oil campaign by environmental groups is unlikely to have immediate effect on leading Malaysian and Indonesian exporters but could lead to trade and aid restrictions in future, the crop's pro-campaign group said Tuesday.

Alan Oxley, chairman of the World Growth International, a US-based non-governmental organisation, said despite the smear campaign in Europe and restrictions on renewal energy there, palm oil's major markets are China and India.

Despite the vigorous campaign to link palm oil to deforestation and increasing greenhouse gas emissions, it may not be sufficient to be included in the new climate change treaty being negotiated here and likely to be finalised in Copenhagen, Denmark, in December.

"I don't think it will be part of the forest component when negotiators finalise the deal. All of these claims are questionable or at best severely exaggerated," he told reporters on the sidelines of the UN Framework Convention on Climate Change talk here leading up to the Copenhagen meeting.

Oxley said major palm oil producers should be wary as some groups like Friends of the Earth and Greenpeace were campaigning to pressure processors and consumers to boycott the commodity and the European Union to block import.

In fact, the EU Renewable Energy Directive restricts the availability of palm oil, he said, adding that the World Growth had launched "Palm Oil Green Development" campaign to correct the myths, misconceptions and falsehoods perpetuated by these groups.

"Even if they cannot succeed in stopping palm oil expansion through the treaty, they can restrict trade and aid to countries that converts forest land to oil palm estates," he said, adding that such a move was contrary to the Bali Agreement which states that climatic change strategies should support and not undermine economic development.

Oxley said one reason for the smear campaign is because palm oil has become a strong competitor to other edible oil such as soyabean and rapeseed, accounting for 32 per cent of global production and 59 per cent annual export.

"Demand for palm oil has increased dramatically over the years. It has a number of advantages over competitor products. When new products have an impact on markets, there is a natural process of adjustment," he said.

He said palm oil cultivation has proven to be an effective tool in combating poverty, citing Malaysia and Indonesia where 40 per cent are owned by smallholders, and similar efforts are being taken to introduce the crop in Africa, Papua New Guinea, Brazil and Laos.

"It has become a substantial export and a key contributor to poverty alleviation and higher living standards. In the 80s when palm oil was grown in Malaysia, the World Bank rated palm oil cultivation as one of the most effective ways to resolve poverty," he said.

He also said oil palm uses less land than crop-based oilseeds, using only 0.26 hectares of land to produce one tonne of oil palm, while soyabean, sunflower and rapeseed need 2.2, 2 and 1.5 hectares, respectively.

On claims that the oil palm industry was destroying forest biodiversity in developing countries, Oxley said in Malaysia, world's second largest producer, the crop was restricted to 20 per cent of the state land allocated for agricultural purposes.

"Both Malaysia and Indonesia have set aside 55 per cent and 25 per cent respectively for forest conservation while the European average is 25 per cent.

"Both countries are also important contributors to programmes to protect endangered species such as the Orang Utan," he said.

The UN Food and Agriculture Organisation had stated that deforestation was largely due to human settlement and not commercial crop, he added.

-- BERNAMA