View
215
Download
0
Category
Preview:
Citation preview
The oil and fats we consumeOils/Fats 2006Palm Oil 36,733Palm Kernel Oil 4,308Soyabean Oil 35,187Cottonseed Oil 4,917Groundnut Oil 4,497Sunflower Oil 11,094Rapeseed Oil 18,340Corn Oil 2,252Coconut Oil 3,166Olive Oil 2,746Castor Oil 524Sesame Oil 871Linseed Oil 710Total Vegetable Oils 125,345Butter 6,790Tallow 8,446Fish Oil 988Lard 7,877Total Animal Oils/Fats 24,101
“It has the scent of violets, the taste of olive oil and a color which tinges food like saffron but is more attractive” Ca’da Mosto,15th century explorer,on discovering palm oil.
“ slave trade had been abolished in 1807, and the merchants had quickly adapted to offering palm oil as an alternative export to slaves.” History of the Niger Delta
“ Well, most of them don't lather that much, because they are good and don't use evil palm oil. And lavender smells funny anyway, no? It smells like old ladies.” Blog posting, 17 November 2008
What is palm oil?WHAT IS PALM OILWhat is Palm Oil
Palm oil is used in more than half of packaged supermarket products today
What is palm oil?What is Palm Oil
0
10
20
30
40
50
1966 1976 1986 1996 2006
What is palm oil?X
1 m
illio
n to
nnes
Source: Oil World, MOPB, MPOC
World palm oil production has grown rapidly
What is Palm Oil
Palm oil is now the world's most-produced vegetable oil
Rapeseed14% Soy
29%
Palm30%
Other19%
Sunflower8%
What is palm oil?
Source: Oil World
What is Palm Oil
Palm Oil...
A highly versatile vegetable oilUsed in many food and non-food productsWorld’s top selling vegetable oil
are highly efficient oil producers...
They require less land than other crops to produce the same volume of oil
What is Palm Oil
Soybean: 0.36
Sunflower: 0.42
Rapeseed: 0.59
Oil palm: 3.68
What is palm oil?
Source: Oil World
Average yield per year (tonnes of oil per hectare)
What is Palm Oil
5 billion people use it
Large revenue earner for Indonesia and Malaysia, and largest for many rural regions
Significant share of market capitilisaton in large producer countries
Quarter billion people employed
More than 5 million smallholders
Why sustainable palm oil?
Why sustainable palm oil?
Forest, peatland conversion
Climate change
Biodiversity loss
Environmental issues in oil palm cultivation
Land ownership conflicts
Worker’s rights and conditions
Treatment of smallholders
Social issues in oil palm cultivation
Why sustainable palm oil?
Other Similar Initiatives
FSC, etc: Forest Stewardship Council (FSC) MSC: Marine Stewardship Council (MSC) 4C: Common Code for the Coffee Community RSCE: Roundtable for a Sustainable Cocoa Economy RTRS: Roundtable for Responsible Soy Sugar: Better Sugar Cane Initiative Salmon and Shrimp: Better Aquaculture Dialogue BCI: Better Cotton Initiative RSB: Roundtable on Sustainable Biofuels
Started in 2003, with 7 members, initially B2B− Registered on 8 April 2004 as a not-for-profit Association
under Article 60 of the Swiss Civil Code “To promote the growth and use of sustainable palm oil
through co-operation within the supply chain and open dialogue with its stakeholders”
Secretariats in Kuala Lumpur (4 staff) and Jakarta (2 staff) Annual budget of USD 1m
The Roundtable
• Multi-stakeholder• Voluntary, self-organising• Transparent• Inclusive• Action oriented - tangible results• Committed to production and use of sustainable palm oil
RSPO Membership• Ordinary members from 7 sectors
– Oil palm growers– Palm oil processors and/or traders– Consumer goods manufacturers– Retailers – Banks and investors– Environmental/nature conservation NGOs– Social/developmental NGOs
• 2-year membership; € 2,000 per year (less for small growers and small NGOs)
• Affiliate membership: € 250 per year
Code of Conduct: “Every member supports, promotes and works towards the production, procurement and use of sustainable palm oil”
Annual progress reports
Grievance panel supervises compliance
RSPO Membership
Sector No of seatsOil Palm Growers 4Palm Oil Processors 2Consumer goods manufacturers 2Retailers 2Banks/investors 2Environmental NGOs 2Social/development NGOs 2
16
Members General Assembly (GA
RSPO GOVERNANCE
Executive Board (EB)
Current Issues, Developments and Challenges in RSPO-
2004 2005 2006 2007 20080
10
20
30
4 0
50
60
7 0
80
90
100
110
Growth in membership by category
Affiliate Banks/Investo rs Co nsumer Go o ds Manufacturers
Enviro nmental/Nature Co nserva-t io n NGOs
Oil Palm Gro wers Palm Oil Pro -cesso rs/T raders
Retailers So cial/Develo pmental NGOs
Num
bers
RSPO Membership
9
45
13
78
111
2310
MEMBERS (July 2009)Oridinary : 289 Affilate: 87
Banks/InvestorsManufacturersE NGOsOil Palm GrowersProcessor/TradersRetailersSocial NGOs
Certification Systems
Certified palm oil
Principles & Criteria
Accreditation Requirements
Certification Process Requirements
RSPO
1261173985518 Continuous improvement
201577 Responsible development
2827116 Social consideration
171765 Environmental responsibility
363484 Best practices
2213 Financial viability
10932 Legal
8821 Transparency
Indicators(CWG)
Oct 2007
Indicators(CWG)
Oct 2005
CriteriaPrinciples
RSPO P&C for Sustainable Palm Oil Production
RSPO – Challenges ahead
CRITERIA BEING REVIEWED• Green House Gas Emissions
• HCV and Biodiversity indicators
• Integrated weed management
National Interpretation (PNG, Malaysia &Indonesia)
NI development (Colombia, Ghana, Thailand &Solomon Islands )
RSPO P&C - National InterpretationRSPO
National interpretation: Ensuring congruence between P&C and national laws, norms and values
Unit of CertificationRSPO
• CPO mill plus supply base
• All FFB from directly managed lands must be included from outset
• For associated smallholders, plan will be presented to verifiers to bring all in compliance within 3 years
RSPO P&C AssessmentsCertification process in review:• New Plantings – Procedures in place for P&C
assurances
• Certification System:- Clause 4.2.4 (Type and extent of verification
required for other units)
- Accreditation of Certification Bodies- Surveillance audits
RSPO Principles & Criteria for Sustainable Palm Oil RSPO
Audit announcementBy Certification Body (CB)
Minimum 1 months noticeInform relevant stakeholders in appropriate language and format and direct comments to
CB. Announcement on auditee’s website (if available)
The Path to RSPO Certification
Audit
Phase 1 - Documents, declarations, etc.
Phase 2 - Physical audit CB to provide competent lead auditor and audit team.
Audit Report
Summary Report for Public Comment (within 60 days after audit)
CB to issue ‘certificates’ For tonnage of oil . Information logged with Green Palm and Utz Central registry
Peer reviewAudit Review Panel
Approximate production volumes of RSPO certified palm oil and palm kernels based on certification to May 2009
PRODUCER CERTIFICATON
Company Country Mills CPO (mt) PK (mt)PKO (mt)United Plantations Berhad Malaysia 6 185,324 50,195New Britain Palm Oil (NBPOL) PNG 4 257,338 62,181Sime Darby Malaysia 5 183,785 41,721Kulim Bhd Malaysia 3 88,914 24,943Wilmar/PPB Oil Palms Malaysia 3 122,900 27,400PT Musim Mas Indonesia 2 135,000 31,250IOI Corp Malaysia 1 63,000 14,850SIPEF/ Hargy Oil Palms Ltd PNG 2 78,158 0 5,830Cargill/PT Hindoli Indonesia 2 51,344 12,122Kuala Lumpur Kepong-KDC Malaysia 2 92,000 22,000PT London Sumatra Indonesia 4 169,480 30,017 2,772TOTAL 34 1,427,243 316,679 8,602
Check & data transfer
Book & Claim system
Check & data transfer
Traceability system
Registration &Management
Audit result &certified volumeCertification
Bodies
Central DatabaseRSPO
RSPOCentral
Data Base
IP / Segregation;Admin Mass Balance
Certificate trading(book & claim)
Supply Chain Certification
Plantations
Refiners & Blenders Ingredient
Manufacturers
Retailers
Mill
Product Manufacturers
Transport & Shipping
The palm oil supply chain:
Many links
Potential for mixingSmallholders
From plantation to end user
Option 3 : Segregation“Fully sustainable, fully traceable”
Certified palm oil
Non certified palm oil
Option 2 : Mass balance“Partly sustainable, fully traceable”
% certified palm oil
Option 1 : Tradable certificates“Supports production of sustainable palm oil”
RSPO certificates
RSPO
Volume credit
2007 Production distribution (ha) by type of farmProduction unit Malaysia % Indonesia %Smallholders 454,896 11% 2,565,135 39%Government estates 1,234,184 30% 687,847 10%Private estates 2,476,135 59% 3,358,632 51%Total 4,165,217 100% 6,611,614 100%
BRINGING SMALLHOLDERS INTO RSPO
RSPO – Involving SmallholdersRSPO
RSPO Smallholder CertificationRSPORoundtable on Sustainable Palm Oil
Generic Smallholder (Scheme) P&C by TFS4th and final draft approved by EB on 2/7/09
Generic Smallholder (Independent) P&C by TFSExpected to be completed in February'10
National Interpretation (Scheme) Indonesia (Ina SWG)
- 2nd 30 days public consultation - Trial auditing in progress
Malaysia (My SWG) - 1st 30 days public consultation
PNG (NI WG) – draft in review
RSPO Smallholder CertificationRSPORoundtable on Sustainable Palm Oil
Group Certification Scheme
- Based on smallholders coming together as groups and the application of internal control systems
- Basis for smallholder groups: cooperatives, independent mills, FFB dealers, etc.
Following is an extract from the Malaysian Prime Minister's 2009 budget speech on 29th August 2008
RSPO
"Malaysia is one of the largest palm oil producers in the world.To enhance global acceptance of palm oil, there is a need todemonstrate strong social and environmental responsibility in ourbusiness practices.In this regard, the government fully support the initiative by palmoil plantations to obtain Roundtable for Sustainable Palm Oil (RSPO)certification.The goverment will allocate RM50 million to provide RSPO Fund tosupport community prgrammes such as upgrading of schools inplantations, as well as implementing conservation programmes such asenhancing biodiversity in plantations".
RSPORoundtable on Sustainable Palm Oil
RSPO and Governments
An MoU between the Ministry of Agriculture of Indonesia and RSPO was signed on the 17th February 2009 to enhance fruitful cooperation in the socialisation, training and implementation of the RSPO P&C in Indonesia, in particular by smallholders.
RSPORoundtable on Sustainable Palm Oil
RSPO and Governments
Recommended