Palm oil must seek new demand ahead of EU curbs, says Sime

  • Business
  • Thursday, 17 Jan 2019

KUALA LUMPUR: Palm oil industry needs to find new sources of demand to offset potential losses from the European Union’s move to ban palm-based biodiesel, according to Mohd Haris Mohd Arshad, Chief Operating Officer for downstream business at Sime Darby Plantation.

More than 60% of palm imports to EU is used for non-food and biodiesel, Mohd Haris says at conference in Putrajaya.

Malaysia should review biodiesel policies to raise blending mandates to increase domestic demand, boost growth in non-food palm consumption

Poor uptake of certified sustainable palm oil, higher costs of production pose challenges to palm oil industry.

Many fast moving consumer goods don’t openly promote certified sustainable palm oil due to persistent negativity against the oil.

Various certification requirements add costs to producers and smallholders, with no guarantee of cost recovery.

Higher requirements by FMCGs for refined palm oil has raised manufacturing costs and made palm oil not competitive vs soft oils.

Sime Darby Plantation is world’s biggest palm oil planter by acreage and biggest producer of certified sustainable palm oil. - Bloomberg
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