Wednesday, September 5, 2007

Malaysia to Allay Fears in EU Over Oil Palm Cultivation

MALAYSIA's palm oil, which has gained acceptance in the food processing
industry in the US after a long-drawn battle with soyabean oil, is now up
against environmentalists in the European Union (EU).

Environmentalists are accusing Malaysia, which is the world's largest
producer and exporter of palm oil, of upsetting biodiversity as it brings
more land into oil palm cultivation.

Plantation Industries and Commodities Minister Datuk Peter Chin has
embarked on a week-long troubleshooting mission with senior officials and
industry players to counter what the Malaysian Government terms as unfair
lobbying led by environmental non-government organisations (NGOs).

The mission is of significance to Malaysia as the EU is Malaysia's second
largest importer of palm oil, representing 17.9 per cent, or 2.58 million
tonnes, last year as higher demand for palm oil came from both the edible
and non-edible sectors.

"These European sceptics seem to think that oil palm is widely grown in
Malaysia at the expense of the environment and is a significant
contributor of carbon dioxide emissions globally," Chin told Business
Times in an interview.

Describing palm oil as the first tropical plantation commodity to address
global concerns by specifying principles and criteria for sustainable
production, Chin said the adverse publicity has intensified in the last
six months.

"The NGOs are starting to distribute pamphlets on anti-palm oil through
posters and so on to pressurise major stores like Tesco and Sainsbury's,
to discourage them from buying or selling palm oil that in itself will
have a major impact on the consumption pattern of European consumers," he
said.

Allegations include environmental damage, deforestation, climate change
and destruction of the natural habitat of the Orang Utan.

Chin, who did a similar trip to Europe last year to counter claims against
Malaysian timber, said this time there are unfounded claims that biodiesel
demand in the EU will lead to indiscriminate expansion of plantations in
Malaysia.

Most of Europe's biodiesel fuel is sourced mostly from rapeseed oil now,
which is unable to meet the surge in demand as Europe's bio-fuel policy
targets a 5.75 per cent biofuel use by 2010.

Chin said he is determined to challenge these false claims at every level
- from NGOs to legislators in all three EU countries he will be visiting -
the Netherlands, Belgium and the UK.

Chin will be meeting Dutch Environment Minister Jacqueline Cramer,
Agriculture, Nature and Food Quality Minister Gerda Verburg as well as
other Members of Parliament (MPs) today.

He is to meet with EU MPs in a dialogue session in Brussels tomorrow.
There will be a symposium on sustainable resource development on
Wednesday.

His 25-member team includes Malaysian Palm Oil Board chairman Datuk Sabri
Ahmad, who is also the chief executive officer (CEO) of Golden Hope
Plantations Bhd, Malaysian Palm Oil Council (MPOC) chairman Datuk Seri Lee
Oi Hian, who is also the CEO of KL Kepong Bhd, MPOC CEO Tan Sri Dr Yusof
Basiron and Malaysian Palm Oil Association CEO Datuk Mamat Salleh.

Malaysia and Indonesia, also a large palm oil producer in the world,
recently teamed up to combat palm oil smear campaigns.

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