Technology key to palm oil industry’s compliance with EU deforestation regulation
06/06/2023 (The Sun Daily) - The palm oil industry must be in tune with technological advancements as it is a crucial enabler in complying with the European Union’s Deforestation Regulation (EUDR).
Software developer DIBIZ Malaysia Sdn Bhd co-founder and chief executive officer U.R. Unnithan said that technology-driven solutions offer promising ways to address the challenges when complying with EUDR.
“Real-time visibility through blockchain or Internet of Things (IoT) systems can provide transparency within supply chains, while also enabling traceability. Digital systems can aid in collecting real-time granular supply chain transaction data, monitoring deforestation activities through real-time satellite imaging, and facilitating immutable record-keeping in a digital repository at every node of the supply chain including smallholders.
“By implementing satellite imagery, remote sensing, and geospatial data, it becomes easier to track and mitigate deforestation, ensuring compliance with sustainable practices,” he told Bernama.
Moreover, he said that smallholders in the palm oil industry, who contribute 50%of global output play a significant role in palm oil production, and often face structural, social, and economic barriers.
“Mobile applications like DIBIZ offered free to smallholders with training, market information, and fair pricing will empower them and improve their livelihood.
“These tools can bridge the information gap and equip smallholders with the necessary knowledge and resources to adopt sustainable practices and access higher-value markets,” he said.
Unnithan explained that achieving compliance with the EUDR requires collaboration among industry players, technology platforms, and stakeholders.
“Comprehensive digital ecosystem must be established, enabling seamless data sharing without compromising on sensitive commercial detail and will improve coordination among stakeholders. This collaborative effort will ensure the effective implementation of technology-driven solutions.
“Implementing real-time end-to-end traceability within the palm oil industry necessitates overcoming various challenges. Supply chain management, lack of collaboration, and concerns over security and privacy are among the obstacles that need to be addressed. However, the proposed technology solution addresses all industry concerns and offers a very cost-effective way forward,” he said.
In conclusion, he said that technology holds immense potential in facilitating smallholder inclusion and compliance with the EUDR.
“Improvement in smallholder incomes is a major social impact that we intend to achieve through creating this new digital ecosystem. By embracing digitisation, leveraging blockchain and IoT systems, and fostering collaboration, the industry can achieve end-to-end traceability, empower smallholders, enhance productivity, and ensure sustainable practices.
“Embracing technology is not only a means to comply with regulations but also an opportunity to build a resilient and responsible palm oil supply chain,” he said.
Unnithan also added that the DIBIZ blockchain technology received positive feedback and attention from stakeholders including multinational corporations based in the EU during the recent joint ministerial delegation from Malaysia and Indonesia to Brussels.