KUALA LUMPUR: After the French government’s scrapping of its oil palm tax, Malaysia is going to go full-speed on its sustainable palm oil production to meet demand from Europe.
According to the Malaysian Palm Oil Board, the European Union is the second largest palm oil market for the country, with 2.4 million tons purchased in 2015, 400,000 million tons more than in 2011.
There is a continuously growing market for palm oil, but due to environmental concerns, demand for sustainable Roundtable on Sustainable Palm Oil (RSPO)-certified palm oil is increasing.
By 2020, all palm oil in Europe will have to be produced in accordance to RSPO standards. The Malaysian Palm Oil Council (MPOC) is optimistic they will be able to deliver that on time – or even earlier.
“We have enough certified palm oil to meet their demand, we don’t have to wait until 2020,” MPOC chairman Yusof Basiron told the Jakarta Globe in Kuala Lumpur on Wednesday (12/10).
According to Basiron, the European measures still discriminate against palm oil, as certification is not required for other types of vegetable oil. This will affect the economy of both Indonesia and Malaysia, he said.
Sime Darby Unimills, the Dutch representative of Malaysian palm oil giant Sime Darby Plantations, also believe the measures affect the balance between healthy, safe and affordable.
“With palm oil, you can deliver tasty, healthy, food products that consumers love at a reasonable price. Palm oil is still in great demand in Europe, and the world,” Annette Van Herwijnen, sales manager of Sime Darby Unimills, said.
