Walk the Talk for Sustainability

8/12/2019 Walk the Talk for Sustainability

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Cover Story

The best planned sustainable

practices would be no more than

wishful thinking if these cannot be

translated into good agriculture practices.

Having spearheaded extensive research and

development in oil palm cultivation,

Malaysia has long advocated sustainable

farming practices. In this, it has struck a

balance between commercial and economic

needs and preservation of the environment.

GLOBAL OILS & FATS BUSINESS MAGAZINE VOL.3 ISSUE 2, 20066

Malaysia has long turnedconcept into action forsustainable production of palm oil

Bako National Park, SarawakPhoto: MT C


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the global vegetable oils as well as

accounts for 29% of export trade in oilsand fats. This is carried out on 1.84% (4

million ha) of the total area (216 million

ha) under global oilseeds cultivation.

Oil palm has been demonstrated to be the

most efficient and biologically superior

oilbearing crop in terms of land util isation

efficiency and productivity. Average oil

yields are 3.66 tonnes/ha/year, while thatof other oilseed crops pale in comparison

(soybean, 0.36 tonnes/ha/year; rapeseed,

0.60 tonnes/ha/year; sunflower seed 0.46

tonnes/ha/year).

Only 9.2 million ha of agricultural land

need be devoted to oil palm to produce

31.8% of the global fats and oils output.

For a similar output, soybean cultivation

requires 92.54 million ha.

Thus, if the target is to feed the growing

world population and better utilise

available land for cultivation, it makes

good sense to look at palm oil as a

sustainable commodity. In addition,

research strategies have focused on

improving yields, projecting an output of

up to 6 tonnes/ha/year within the nextdecade.

Scientific evidence

The acreage under Malaysian oil palm has

released approximately 85 million tonnes

of oxygen through photosynthesis and

related activities. In contrast, the entire

agriculture land of 17 million hectares in

the UK has generated only 43.5 million

tonnes of oxygen or half that of Malaysian oil palm cultivation.

Carbon dioxide levels are already at their

upper limits of acceptability in the

Western Hemisphere due to the use of

more fossil fuel and the lack of adequate

green cover. Oil palms carbon dioxide

absorption/sequestering power amounts

to 117 tonnes versus 60 tonnes for theUKs entire range of agricultural crops.

It should therefore come as no surprise

that the oil palm is unsurpassed in its

ability to generate oxygen and effectively

absorb carbon dioxide for the benefit of

the world population.

The Carbon Cycle

The carbon cycle illustrates

how plants and animals of

the rainforest rely on each

other for survival. Fast

growing young trees

convert carbon dioxide to

organic matter via

photosynthesis. In turn,

carbon dioxide is released

by living organisms into the

atmosphere through

respiration.


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SustainableOil Palm

Development

Economic productivity

In 2004, the UK received Euro 4.06

billion for subsidies to support its

agriculture sector, which earned Euro

24.72 billion per year. This produced an

earning of Euro 1,448/ha, of which Euro

238 was the subsidy component, leavingnet revenue of Euro 1,210/ha per year. In

the same year, the Malaysian palm oil

industry earned Euro 6.53 billion per year

or Euro 1,687/ha of revenue yearly, which

exceeded the UK agricultural unit

earnings.

If purchasing power parity is applied to

revenue, the Malaysian palm oil industry

is far superior to that of UK agriculture in

terms of the sustainability indicators.

Without the subsidy, EU agriculture

would be totally unsustainable. The

subsidy contributes to environmental

damage due to the over-use of fertilisers

and pesticides, and the inexorable

destruction and removal of forests.

Compared to the major annual oilseed

crops planted in the US and the EU, each

hectare of oil palm produces 10 times

more oil with fewer resulting emissions

and pollutants. Combining such natural

efficiency and a productive lifespan of 25-

30 years ensures a sustainable and steady

supply of an essential food commodity

that feeds millions.

The sustainability of the Malaysian palm

oil industry is therefore obvious, and it

can be safely claimed that cultivation is

comparatively superior to any large scale

agriculture in the tropics or the temperate

countries in terms of sustainability

parameters. The plantation industry is

professionally managed, with manycompanies being listed on the Malaysian

stock market, and practising

corresponding requirements of corporate

governance and corporate responsibility.

Demonstrated commitment

While it cannot be emphasised enough

that Malaysian palm oil is produced using

sustainable practices, the industry is open

to collaboration to enhance its high

GLOBAL OILS & FATS BUSINESS MAGAZINE VOL.3 ISSUE 2, 200610

Cover Story

For any development to be sustainable, it should be:

economically viable

socially acceptable

environmentally compatible

technologically appropriate


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standards. To underscore its seriousness,

Malaysia has launched a Palm Oil Wildlife

Conservation Fund with an anticipated outlay

of RM20 mill ion. This will fund ideas andproposals to enhance biodiversity linked to palm

oil production worldwide.

NGOs, meanwhile, are calling for plantations to

join the Roundtable on Sustainable Palm Oil

(RSPO), which has yet to establish official

certification procedures. Malaysian palm oil

should mostly qualify within currently

acceptable parameters of sustainability.

Any call for the boycott of unsustainable palm

oil would be premature and difficult to

implement in the absence of certification. After

all, there are no sustainable oilseed products

from the EU, raising the question as to why

these are not being boycotted.

The RSPO is a novel idea, supported by the

Malaysian palm oil industry, but its

implementation should be further researched

for consensus between the participating

suppliers and buyers.

Indeed, the challenge is now for other oilseed

and food crop producers to take up the concept

of a Sustainability Roundtable. It will be

interesting to see if they can achieve sustainable

standards of production already achieved in

Malaysia.

Dr Yusof Basiron

CEO, MPOC

This is a revised version of a paper presented at the M POC symposium.

Photo: MTC 11GLOBAL OILS & FATS BUSINESS MAGAZINE VOL 3 ISSUE 2 2006

A river flowing through thedense forest of Taman Negara,Malaysias oldest and mostfamous national park

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Walk the Talk for Sustainability