Breaking News on Food & Beverage Development - EuropeUS edition | Asian edition

Headlines > Market Trends

More EU members urged to back sustainable palm oil trading

Post a commentBy Nicola Cottam , 16-May-2014
Last updated the 20-May-2014 at 15:46 GMT

GreenPalm: More needs to be done in,
GreenPalm: More needs to be done in, "converting newer members of the EU as well as other major consumer markets, like India, Indonesia and China..."

Sustainable palm oil trader GreenPalm will use this year’s European Roundtable for Sustainable Palm Oil (RSPO) Summit as a platform to urge key players in the EU palm oil industry to galvanise shared knowledge and promote sustainable sourcing.

Approximately 56 million tonnes of palm oil is produced a year to support EU demand, but only a fraction (6½ million tonnes) is used by manufacturers, explains GreenPalm Book & Claim general manager, Bob Norman.

“The role of the RSPO is to stimulate and incentivise growers and to generate support for sustainable palm oil production and distribution throughout Europe,” he said.

“A bigger challenge, however, is how to balance the demand markets and addressing what to do with the other 50m tonnes of palm oil generated by, but not used in EU markets. This involves converting newer members of the EU as well as other major consumer markets, like India, Indonesia and China, which demand around 20-23m tonnes a year, to sustainable sourcing.”

GreenPalm encourages RSPO-certified growers to trade certified oil on the GreenPalm Market

The RSPO's 2nd European roundtable summit will take place in London on 4 June. The objective of the event is to launch a new dialogue with all supply chain actors in Europe before the entry into force of the EU FIC regulation.

100% effort...

GreenPalm will tell EU stakeholders that one way to achieve 100% sustainability of palm oil is to establish a solid 3-tiered segregated system, as well as utilise its own Book & Claim supply chain system to increase and support smallholder activity.

Norman explained: “The EU’s ambition is to have 100% traceable certification by 2015 but there has been a lot of noise among members about only wanting to import segregated palm oil, which is expensive and not inclusive for smallholders.”

“We need to make the movement of palm oil as cost efficient as possible with a combination of all three supply chains.”

Sales of RSPO Certified Sustainable Palm Oil (CSPO) reached a new high in the first quarter ending March 31, 2014, with a 49% increase for physical uptake of CSPO and a 54% increase for GreenPalm Certificates, compared with 2013.

“RSPO schemes have boosted smallholder production in Thailand to 70% of the total market and have given smallholders the flexibility to reduce costs,” said Norman.

“Growers have been able to improve yields on existing land and lower input costs so they are less likely to seek expansion in protected zones. Better farming practices have also allowed growers to reduce fertilisers.”

“All the signs are positive. We have the certified standards in place and the incentives for manufacturers and suppliers to purchase through these sources – now we just need to join all the dots.”

He said the signs are positive for 2014 with issued GreenPalm certificates surpassing 2013 numbers. A record 1,287,037 have been issue to the end of April.

Post a comment

Comment title *
Your comment *
Your name *
Your email *

We will not publish your email on the site

I agree to Terms and Conditions

These comments have not been moderated. You are encouraged to participate with comments that are relevant to our news stories. You should not post comments that are abusive, threatening, defamatory, misleading or invasive of privacy. For the full terms and conditions for commenting see clause 7 of our Terms and Conditions ‘Participating in Online Communities’. These terms may be updated from time to time, so please read them before posting a comment. Any comment that violates these terms may be removed in its entirety as we do not edit comments. If you wish to complain about a comment please use the "REPORT ABUSE" button or contact the editors.

Related products