It has now been 25 years since the start of strong growth in the Southeast Asian palm oil industry. Independent smallholders are crucial in the supply chain of large palm oil companies as they generate up to 40 percent of the global Fresh Fruit Bunch (FFB) supply. However, independent smallholders are facing declining yields per …
France’s constitutional court upheld the country’s efforts to restrict the use of palm oil in biofuels. On October 11, 2019, oil major Total lost its fight in French court to utilize tax breaks for palm oil use for biofuels. The court’s ruling is a major blow to Total, which will lose USD 88 million at …
Significant shifts in soft commodity trade are continuing rapidly. China’s palm oil imports in August reached their highest level in six years at 590,000 tons. At current pace, China’s imports of palm oil are set to be the highest annual rate ever in 2019. This is likely another consequence of the U.S.-China trade war. As …
Dozens of the largest fast-moving consumer goods companies (FMCGs) have pledged to combat deforestation in recent years. Many did so as part of the Consumer Goods Forum (CGF), which in 2010 set a goal of achieving net-zero deforestation by 2020 by responsibly sourcing soy, palm oil, paper and pulp, and cattle. Many also endorsed the …
Sime Darby aims to sell its assets in Liberia by the end of 2019. The company has been considering a possible sale since early 2019. In February 2019, Chain Reaction Research (CRR) reported that a sale of its Liberian plantation was complicated as a result of high operational costs, a limited planted area, and expenses …
A large majority of global palm oil traders and refiners have implemented No Deforestation, No Peat, No Exploitation (NDPE) sourcing policies in recent years. Violations of such policies have repeatedly led to suspensions of oil palm growers from supply chains. Four years after the first suspension events, data is available on both short- and long-term …
The main drivers of deforestation in Ecuador are similar to those in other countries in the region: The cattle industry; logging (both for fuel and for commercial purposes); plantations for oil palm, cacao, and coffee production; crude oil production; growing crops for bioethanol production; mining; and infrastructure development. With most agricultural commodity production done by …
In the first six months of 2019, ten companies were responsible for almost 19,000 hectares (ha) of deforestation in Malaysia, Indonesia, and Papua New Guinea. This amount represents approximately 50 percent of the estimated 40,000 ha of forest and peat that has been cleared in these regions in 2019 and which can be attributed to …
Indofood Sukses Makmur’s (Indofood) financial statements for 1H19 show that Citigroup, Standard Chartered and Rabobank no longer offer credit facilities to the company. Both Rabobank and Citigroup have reportedly cut ties with Indofood because of sustainability concerns at its subsidiary Indofood Agri Resources (IndoAgri) and related entities. Combined, the three banks provided credit facilities of …
The European Commission (EC) this week released proposals to step up action to reduce deforestation globally and cut the EU’s exposure to deforestation-linked commodities. The EC laid out plans to stimulate the use of deforestation-free products through both “regulatory and non-regulatory measures.” Recognizing that relying on voluntary approaches and non-binding guidance is not enough, the …
