Benchmark for palm oil player
By DANNY YAP
Award of first RSPO cert to United Plantations changes whole ball game for the industry
KUALA LUMPUR: United Plantations Bhd being awarded the world’s first Roundtable on Sustainable Palm Oil (RSPO) certificate on Tuesday has a significance beyond a company-specific milestone.
It sets the benchmark for other players in the industry to follow suit.
More importantly, it changes the whole ball game for industry players as those with RSPO certification would be deemed the “preferred” palm oil companies by the big international buyers, who are likely to insist on dealing with producers that practise sustainability.
Other large palm oil players in Malaysia and countries like Indonesia have taken note of the bar being raised in the industry, and a number of them are in various stages of preparation for RSPO certification.
However, there are some questions that beg to be answered: What about the small and medium palm oil players which might not have the human resource and capital to undergo such a stringent test of sustainability? Would they be marginalised for the lack of RSPO certification?
These smaller players might be wondering what the future would hold for them in the name of sustainability.
Hopefully, the migration to RSPO certification will not be too detrimental for the smaller players, as assured by some RSPO experts and affiliates at the United Plantations’ RSPO certificate presentation ceremony.
They said that fair consideration and time would be given to these players to move to an “acceptable level” of sustainabiilty.
An RSPO certification expert said the organisation was looking seriously at the issue and how to make adjustments for the smaller players so that they would not be marginalised.
The move by the palm oil industry to have a sustainable business model is likely to set a precedent for a slew of commodities to be produced by sustainable means.
Stringent standards similar to the RSPO for the palm oil industry are likely to be introduced in a host of commodity-based industries.
This will have far-reaching implications in terms of the survival of many big as well as small players in the various industries.
Source: http://biz.thestar.com.my/news/story.asp?file=/2008/8/28/business/1902087&sec=business
August 27th, 2008 at 7:45 pm
Hmmm….. What will the orangutans think about this?
On the face of it, it seems like a step in the right direction… but who is the judge of sustainability? The orangutans? I somehow doubt it…
Who can be sure the corporations won’t bait and switch their oil shipments? Are we expected to drop our guard and believe the corporate elite? Have they ever proven themselves worthy of our trust?
Can we really trace the origins of the oil? Who is to say the certified Malaysian companies won’t get certification on their side of the border and then illegally smuggle tons of palm oil from the Indonesian side and sell it to their Western and Chinese cronies (wink wink nod nod)?
You can’t really expect me to believe the palm oil companies and their slaves will stop burning down the orangutans’ forest home now that they’re being ‘forced’ to practice sustainable agriculture by Westerners…
Come on… This is like believing George W. Bush when he says ‘No child left behind’ !
The only safe palm oil is NO palm oil. Try harder next time!
Dr. Zaius
Ape shall never kill ape!
August 28th, 2008 at 3:28 am
The main problem I can’t get past with the RSPO is the clause that no virgin forest or HCF forest will be converted to palm oil after 2005, because any illegally logged or fire damaged forest is immediately re-classified as secondary forest and can then be converted to oil palm.
Therefore, the only thing these companies need to do is log or light a fire and the forest is able to be converted - with the RSPO’s blessing.
So any forest is covertable and the RSPO will not bat an eyelid.
How is this sustainable?
This is a huge loophole within the RSPO that needs to be closed urgently if anyone is to be expected to take the RSPO seriously.