THE BLOG

For a Better, More Responsible Certification on Palm Oil

04/06/2014 15:46 BST | Updated 04/08/2014 10:59 BST

This week in London, the Roundtable on Sustainable Palm Oil (RSPO) is

meeting for its annual conference. Malaysia is one of the world's largest

palm oil producers, and many Malaysian companies are long-serving members of

the RSPO, which was founded by the environmental NGO, the Worldwide Fund for

Nature (WWF).

The positive case for palm oil is, unfortunately, little known in Britain.

The fact that palm oil is the most productive, and most land-efficient

oilseed crop is not widely understood. This means, for example, that oil

palm produces the same amount of oil as soybean but uses 10 times less land.

Yes, a factor of 10. When we talk in the region of millions of tonnes of

oils being needed each year, that is a lot of land saved by planting

palm oil. Palm oil's health properties are also often overlooked - palm oil has

been credited by leading nutritionists with reducing dangerous trans fats in

the Western diet (palm oil is a perfect, and much healthier, replacement).

The most important socio-economic fact about palm oil, though, is the

presence of small farmers, such as the 200,000 in Malaysia alone. Small

farmers represent almost 40 per cent of the palm oil land in Malaysia - the

industry is made out of a happy blend of larger plantation groups, and small

farmer cooperatives. It is a classic win-win: small farmers have provided a

backbone for the industry to grow and succeed, and at the same time,

families and communities across Malaysia have been lifted from poverty into

prosperity, thanks to the benefits of palm oil cultivation.

Only around half of all RSPO-certified palm oil is currently being bought.

Producers in Malaysia and elsewhere have spent valuable time, effort and

money to ensure certification - but the companies in Europe are not buying

RSPO-certified oil, which means that the investment from Malaysian producers

is not being repaid.

RSPO is one of many organizations in Europe attempting to communicate about

palm oil. Unfortunately, more radical forces are currently in the

ascendance. The for-profit NGO, The Forest Trust (TFT), is lobbying for 'No

Deforestation' policies that go well beyond RSPO. Several major companies,

including Unilever, have signed up. As with many simple slogans, 'No

Deforestation' sounds appealing at first glance, but is in fact far more

complicated.

Small farmers are those who will be affected by the new campaign. The TFT

standards require costly administration and monitoring, which small farmers

simply cannot afford. One major European company has already admitted that

80 per cent of its small farmers will be 'culled' from the supply chain as a

result of the complex and expensive 'No Deforestation' standards.

Small farmers should not be suffering at the hands of environmental

campaigns. Some NGOs simply have the wrong set of priorities. The United

Nations clearly sets out that sustainable development is based on economic,

social and environmental progress. Small farmers in Malaysia provide all

three: but TFT only wants to focus on the environmental. This is harmful,

and short-sighted.

The challenge for the members of RSPO this week, and the challenge for all

Western companies in relation to palm oil is: what will you do? Small

farmers, who make up a large percentage of palm oil production, and for whom

the crop is a valuable lifeline, should not be sacrificed on an altar of NGO

one-upmanship. How will RSPO ensure that small farmers can genuinely

participate and be recognized, rather than - at present - shut out due to

the over-representation of Western commercial and NGO interests?

It is not easy to know the answer for those RSPO delegates attending this

week. For small farmers, an answer may be presenting itself independently -

the Malaysian Government is poised to announce a new, national certification

scheme that will include both larger plantation companies, and small

farmers. The Malaysian Sustainable Palm Oil standard (MSPO) will bring

together strong legal protections and regulations on oil palm cultivation,

into one national standard. MSPO can give confidence both to small farmers -

that their contribution is recognized, and that their place in supply chains

is respected - and to Western consumers - that the palm oil in their

products has been produced responsibly.

Malaysian palm oil producers, both the larger plantations and the small

farmers, are proud to produce palm oil, and proud of the responsible

production in place methods across Malaysia. This includes strong

environmental protection. The Malaysian Government promised, at the UN Earth

Summit in Rio, to maintain a minimum of 50% forest cover. That commitment

was made in 1992, and it is still being comfortably achieved today. This is

sustainable development - bringing together economic, social and

environmental protections. Small farmers of palm oil, and the new MSPO

standard, are living proof that it is possible. We just need to get the word

out.