ANTI-PALM OIL CAMPAIGN UNLIKELY TO HAVE IMMEDIATE IMPACT ON EXPORTERS

BY D. ARUL RAJOO

BANGKOK, Sept 29 (Bernama) -- The anti-palm oil campaign by environmental
groups is unlikely to have immediate effect on leading Malaysian and Indonesian
exporters but could lead to trade and aid restrictions in future, the crop's
pro-campaign group said Tuesday.

Alan Oxley, chairman of the World Growth International, a US-based
non-governmental organisation, said despite the smear campaign in Europe and
restrictions on renewal energy there, palm oil's major markets are China and
India.

Despite the vigorous campaign to link palm oil to deforestation and
increasing greenhouse gas emissions, it may not be sufficient to be included in
the new climate change treaty being negotiated here and likely to be finalised
in Copenhagen, Denmark, in December.

" I don't think it will be part of the forest component when negotiators
finalise the deal. All of these claims are questionable or at best severely
exaggerated," he told reporters on the sidelines of the UN Framework Convention
on Climate Change talk here leading up to the Copenhagen meeting.

Oxley said major palm oil producers should be wary as some groups like
Friends of the Earth and Greenpeace were campaigning to pressure processors and
consumers to boycott the commodity and the European Union to block import.

In fact, the EU Renewable Energy Directive restricts the availability of
palm oil, he said, adding that the World Growth had launched "Palm Oil Green
Development" campaign to correct the myths, misconceptions and falsehoods
perpetuated by these groups.

" Even if they cannot succeed in stopping palm oil expansion through the
treaty, they can restrict trade and aid to countries that converts forest land
to oil palm estates," he said, adding that such a move was contrary to the Bali
Agreement which states that climatic change strategies should support and not
undermine economic development.

Oxley said one reason for the smear campaign is because palm oil has become
a strong competitor to other edible oil such as soyabean and rapeseed,
accounting for 32 per cent of global production and 59 per cent annual export.

" Demand for palm oil has increased dramatically over the years. It has a
number of advantages over competitor products. When new products have an impact
on markets, there is a natural process of adjustment," he said.

He said palm oil cultivation has proven to be an effective tool in combating
poverty, citing Malaysia and Indonesia where 40 per cent are owned by
smallholders, and similar efforts are being taken to introduce the crop in
Africa, Papua New Guinea, Brazil and Laos.

" It has become a substantial export and a key contributor to poverty
alleviation and higher living standards. In the 80s when palm oil was grown
in Malaysia, the World Bank rated palm oil cultivation as one of the most
effective ways to resolve poverty," he said.

He also said oil palm uses less land than crop-based oilseeds, using only
0.26 hectares of land to produce one tonne of oil palm, while soyabean,
sunflower and rapeseed need 2.2, 2 and 1.5 hectares, respectively.

On claims that the oil palm industry was destroying forest biodiversity in
developing countries, Oxley said in Malaysia, world's second largest producer,
the crop was restricted to 20 per cent of the state land allocated for
agricultural purposes.

" Both Malaysia and Indonesia have set aside 55 per cent and 25 per cent
respectively for forest conservation while the European average is 25 per cent.

" Both countries are also important contributors to programmes to protect
endangered species such as the Orang Utan," he said.

The UN Food and Agriculture Organisation had stated that deforestation was
largely due to human settlement and not commercial crop, he added.
-- BERNAMA