Finally, the most important issue is related to the export markets. Does Malaysia have a strong plan of action and strategy to
create market acceptability and credibility for the MSPO exports overseas?

15/10/2013 (The Star) - Before the year ends, one scenario that would likely rock the palm oil scene is the possibility of the Malaysian Palm Oil Association (MPOA) making its grand exit from the international multi-stakeholder grouping, the Roundtable on Sustainable Palm Oil (RSPO).

The MPOA is one of the key members under the RSPO growers group that represents the single largest integrated voice of Malaysia’s private plantation industry that includes oil palm giants such as Sime Darby Bhd, IOI Corp Bhd, Kuala Lumpur Kepong Bhd, United Plantations Bhd and Felda Global Ventures Holdings Bhd.

In fact, some of these companies are also the founding members of the RSPO, which, in turn, handles the voluntary-basis certification of the certified sustainable palm oil (CSPO).

In late September 2011, the decision by GAPKI (Gabungan Pekebun Kecil Indonesia) to quit the RSPO had created a furor, resulting in some palm oil producers being apprehensive about the effectiveness of the RSPO.

GAPKI’s rationale then was quite straightforward – it felt that the RSPO had failed to secure a good uptake and premium price for the CSPO produced by its oil palm grower members for export, especially in the Western countries.

Subsequently, it decided that it would be best for it to focus on its own palm oil certification standard – the Indonesian Sustainable Palm Oil (ISPO) – which has been made mandatory to oil palm plantation companies and planters operating in the republic.

At that time, the MPOA had adamantly said that it would not quit the RSPO.

However, three years after the GAPKI episode, Malaysia, after a long deliberation last month, has gazetted for the introduction of the Malaysian Sustainable Palm Oil (MSPO) standard.

All local oil palm plantation companies and operators are now strongly encouraged to apply for the “voluntary-basis” certification standard spearheaded by the Malaysian Palm Oil Board (MPOB).

The new standard, in fact, is expected to be launched at the upcoming MPOB International Palm Oil Congress 2013 (PIPOC 2013) in Kuala Lumpur next month.

Given this latest development, the immediate question that comes to mind among the MPOA and RSPO members alike is that will history repeat itself?

Some observers even expect the MPOA to announce its decision to quit during the RSPO annual roundtable meeting in Medan, Indonesia, which coincidently will be held one week earlier than PIPOC 2013 starting Nov 21.

On the other hand, the MSPO detractors also have their doubts over the readiness of the new standard to address concerns by producers, consumers and the non-governmental organisations (NGOs) in making it fully acceptable.

Is the MSPO robust enough to tackle criticisms, which have not been addressed by other palm oil certifications, the RSPO and the ISPO?

Unlike the multi-stakeholder-based RSPO, the MSPO is basically driven by the local palm oil industry without any NGO involvement. Will this become the weakest link for the MSPO?

So far, industry players are said to be in the dark on several issues – the timeplan for the adoption of the MSPO, whether the MPOB has appointed the certifying bodies to handle third-party auditing for oil planters and what kind of support would be given to smallholders in complying with the MSPO certification.

Finally, the most important issue is related to the export markets. Does Malaysia have a strong plan of action and strategy to create market acceptability and credibility for the MSPO exports overseas?

Only time will tell.

Deputy news editor Hanim Adnan wishes all Muslims Selamat Hari Raya Aidil Adha. She is also wishing that the MPOB would come up with a secret weapon to ensure that the MSPO had a leading edge over the RSPO and ISPO.