Archived News

Kuala Lumpur, July 7 (Dow Jones) - At odds for years over environmentalissues, palm oil industry players and conservation groups have joinedhands to set standards that will dictate future production and usage ofthe commodity.Teoh Cheng Hai, secretary general of the newly formed Roundtable OnSustainable Palm Oil, or RSPO, said that in recent years, the palm oilsector has been increasingly linked to global concerns about deforestationand loss of biodiversity.In what the industry is touting as a breakthrough, major palm oilplayers and non-governmental organizations agreed late last year to putaside their differences and work together.The co-operation has yielded the RSPO, an association set up in Aprilto lead the combined efforts to promote sustainable, environmentallyfriendly development of the palm oil industry."The logic of (sustainable, environmentally friendly development ofthe industry) is slowly filtering through. We hope that with thisplatform, people can see eye-to-eye on this issue," Teoh said in aninterview."Previously, the industry and the NGOs were not talking. At least now,they are talking."The RSPO, established under Swiss law but with its secretariat in theMalaysian capital, will have members representing all segments of the palmoil supply chain, including oil palm growers, processors and traders,consumer goods manufacturers, retailers, banks and environmental NGOs.A membership drive began this month, with 13 confirmed members so farand many other players expected to follow, Teoh said. Founding members ofthe RSPO include major names such as Aarhus United UK Ltd., Unilever NV,Karlshamns AB, the Worldwide Fund for Nature, or WWF, and the MalaysianPalm Oil Association.

Manila, July 8 (Dow Jones) - Philippine coconut oil exports in Junereached only 50,054 metric tons, down 41% from month-ago levels onprevailing tightness in copra supply, the United Coconut Association ofthe Philippines said Thursday. One trader said there was little tradingactivity in the month of June, due mainly to scarce export supply."Only few buyers and sellers were out in the market last month," hesaid.The export volume in July is expected to improve with an expected risein copra supply in the third quarter of the year, the trader said."We expect (copra) supply to improve by the end of July, so we mightsee a higher export volume for the month," the trader added. Copra is thedried coconut meat from which coconut oil is extracted.Copra production this year is projected to reach only 2.4 milliontons, down from last year's copra output estimate of 2.5 million tons. Theprojected lower copra output this year is attributed to the biologicalstress of coconut trees following several years of bountiful harvests.

WASHINGTON, July 2 -- The CITAC/ASDA Shrimp Task Force announced todaythat the American Soybean Association (ASA) has joined the Shrimp TaskForce to safeguard U.S. soy exports threatened by the shrimp trade case.The ASA is a membership-driven policy organization representing 25,000soybean farmers across the United States.

TAIPEI, July 6 (Bernama) -- International Trade and Industry MinisterDatuk Seri Rafidah Aziz said that Malaysia has asked Taiwan to reduce the20 percent import duty on oil palm fibre which is used for orchid growingin the island state.

1/7/2004 Bangkok Post - Strategic plans to develop the palm oil industryhave been drafted to increase the plantation area by at least 400,000 raia year over the next 25 years.

7/6/2004 BUSINESSWORLD (PHILIPPINES) - The government's push to developthe local palm oil sector should not be seen as a threat to the coconutindustry, an agriculture expert said.

NEW DELHI, July 1 (Bernama) -- India would keep the interest of its oilindustry and oilseeds farmers in mind when signing the Free TradeAgreement with Thailand.

-- Palmis: Malaysia June Palm Oil Exports At 925,000 MT - Trade-- Palmis: Malaysia End-June Palm Oil Stocks At 1.2M MT - Trade

July 3 2004 - RUSSIA has started to enter the palm oil market in aslightly bigger way than usual following the activation of an exportcredit facility for the commodity.

Sao Paulo, July 5 (OsterDowJones) - Soybean exporters from Brazil, theU.S. and Argentina are demanding their respective governments pressureChina to stop arbitrarily restricting imports of their world-leadingoutput.Six groups representing soybean exporters sent joint letters to U.S.President George Bush, Argentine President Nestor Kirchner and BrazilianPresident Luiz Inacio Lula da Silva asking them to force China intochanging its policy of restricting trade by canceling contracts, banningindividual companies and imposing arbitrary and onerous trade rules, thusbreaking World Trade Organization agreements.Brazilian exporters are spearheading the initiative after Chinatemporarily banned local soybean imports from 23 companies in May and Juneafter finding extremely low levels of fungicide in a number of shipments.The ban has been lifted but exporters lost a lot of business and are stillawaiting payment on shipments sent."Unfortunately, these aren't the first cases in which they have triedto administrate the flux of trade through non-tariff barriers, which isprohibited by the World trade Organization," read the letter, seen byOsterDowJones.Both U.S. and Argentine exporters have previously been affected byChina's lack of transparency as the Asian giant routinely delays andcancels issuing of import permits.China is the world's main importer of soybeans. The U.S. Department ofAgriculture forecasts imports will reach 24 million tons in the year fromSept. 1.The letter specifically demanded that governments pressure China torescind new sanitary import rules, introduced July 1, which are much morestringent than international standards.It went to ask that the government obtain assurances that China willcease to use administrative restrictions to limit trade. If it shouldcontinue to do so, the government should consider lodging a complaint atthe World Trade Organization, it added.The letter was sent by Brazil's National Cereal Exporters Associationand the Brazilian Vegetable Oil Processors Association, by Argentina's OilIndustry Chamber and the Cereal Exporters Center, and the North AmericanExport Grain Association and the National Oilseed Processors Association.

7/1/2004 THE STAR (MALAYSIA) - Malaysian Palm Oil Association has askedthe palm oil refiners in Malaysia to consolidate their businesses toovercome the threat of intense competition from major palm oil importingcountries. Malaysia, which has 47 palm oil refiners, needs to consolidateits palm oil business to build a solid group both in terms of volume andfinancial standing.

Buenos Aires, June 28 (OsterDowJones) - Argentina and China havesigned a memorandum of understanding on biotechnology and biosecurity,Argentina's Agriculture Secretariat said Monday.The signing of the memorandum, which took place at the beginning of avisit by Argentine President Nestor Kirchner to China, means Argentinawill work closer with China on agricultural trade and relatedbiotechnology issues."Through this accord, we will look to strengthen the exchange ofinformation between the two countries and, fundamentally, to facilitatethe trade of biotech products," Miguel Campos, Argentina's AgricultureSecretary, said in a statement Monday.China is a major importer of Argentine agricultural goods, especiallysoybeans and soy-based products. Last year, China bought at least $2.2billion worth of agricultural goods, according to Secretariat data."China has become our top trade partner, accounting for 14% of totalArgentine exports," Campos said. "We are very interested in maintainingcooperation with China in different areas, such as biotechnology, bovinegenetics, no-till farming and forestry."As the world's No. 2 user of genetically modified crops, or GMOs,Argentina is also interested in ensuring that China has no problemimporting such goods.To ensure cooperation on this front, Campos said Argentina and Chinawill create a "working group" comprised of technical officials from bothcountries. The aim of the group will be to "facilitate the cross-bordermovement of genetically modified organisms."Roughly 98% of Argentina's soybean crop is genetically modified,according to official data. Moreover, 40% of the country's corn crop ismodified and 20% of its cotton products are derived from GMOs. In total,23% of Argentina's planted crop area is dedicated to farming GMOs.Given that China buys about two-thirds of local soybean exports, thecreation of this new working group is "strategically important" forArgentina."Surely exports to China of new biotechnology products will increase,"the Secretariat said in a statement.Meanwhile, Argentina has also pledged to help China develop its ownbiotechnology program. By 2005, China will have invested $1.2 billionboosting its own biotech program, according to Secretariat data.Cooperation is a big part of Argentina's negotiating strategy withChina. "Cooperation first; then commerce," Campos is fond of saying."From the Secretariat that I run, we will do everything necessary sothat neither geographic distance nor cultural differences become anobstacle to the development of our commercial relationship," Campos said.On Tuesday, Campos will meet with officials from China's animal andvegetable health authority, or AQSIQ, to discuss protocols related to suchimports as citrus and beef, among other goods.Later, Campos will meet with Kirchner to inaugurate a permanentArgentine agricultural attache office in Beijing. Campos knows theposition well, as he was Argentina's agricultural attache in Brazil priorto becoming Agriculture Secretary last year.