20/08/2024 (Ofi Magazine) - Leading Malaysian agribusiness FGV Holding has produced its first batch of European Union Deforestation Regulation (EUDR)-compliant crude palm kernel oil (CPKO), New Straits Times reported.

The achievement made FGV one of the first Malaysian companies to produce EUDR-compliant CPKO, the company said on 8 August.

A legislative framework aimed at ensuring that products imported into the European Union (EU) are free from deforestation and forest degradation activities, the EUDR is set to take effect later this year.

From 30 December 2024, companies will have to prove that the soya, cattle, palm oil, wood, cocoa, coffee and rubber products that they import into the EU, export from the EU or place on the EU market do not come from any area deforested since December 2020.

“Our production of EUDR-compliant CPKO marks a major advancement for our operations and underscores our dedication to meeting stringent global environmental and social standards,” FGV group CEO Nazrul Mansor said.

FGV said it had focused on sourcing its fresh fruit bunches (FFB) from three key sources: its own estates, FELDA’s settlers, and independent smallholders who were already in line with the EUDR, Malaysian Sustainable Palm Oil Certification (MSPO) or Roundtable on Sustainable Palm Oil (RSPO) traceability requirements.

“We aim to expand the network of our business partners from amongst the smallholders, which in turn will generate better economic opportunities for them, and further enhance collective sustainability efforts of the Malaysian palm oil industry,” Mansor said.

In July, FGV launched its enhanced Sustainability Framework, advancing its commitment to environmental, social and governance (ESG) goals.

According to its website, FGV is one of the world’s largest crude palm oil (CPO) producers, accounting for 3% of global and 14% of Malaysian CPO production.

The company’s palm upstream business forms the core of the group, which manages a total land bank of 439,725ha in Malaysia and Indonesia, producing approximately 3M tonnes/year of CPO.

FGV operates in seven countries across Asia, Europe and North America and apart from the palm sector its operations also include sugar, integrated farming and logistics & support businesses.

https://www.ofimagazine.com/news/fgv-produces-first-batch-of-eudr-compliant-crude-palm-kernel-oil