28/08/2008 (Commodity Online) - Malaysia is desperately trying to market its palm oil as a different entity in the world market with the European Union and other nations looking at south Asian oil with suspicion.

The European nations have been blaming south Asian nations for resorting to deforestation to grow palm plantations causing severe environmental problems.

Concerned over this allegation, Malaysia has decided to brand its palm oil saying that palm plantations in the country are grown on genuine agriculture land.

With the branding, Malaysia hopes to increase its sales. With Malaysia’s commitment towards sustainability, and to continue palm oil industry’s growth, there is urgent need to differentiate the country’s palm oil from that of other producers in the world, said Yusof Basiron, chief executive of Malaysian Palm Oil Council.

Moreover, the European Union plans to put in place strict regulations on using vegetable oils for making biofuels.

According to Yusof, Malaysia is already complying with strict environmental legislation as oil palm is grown on legitimate agricultural land and is not the cause of any wildlife destruction.

The possible brand name for the country’s palm oil could be ‘Malaysiapalm’. This brand will give an assurance that the palm oil produced under this programme comes from plantations grown on legally approved agricultural land in Malaysia.

All plantations producing the branded oil will be licensed, registered and regulated by law through Malaysian Palm Oil Board and will be verifiable by auditors. Even a certificate of assurance could be offered to buyers that the palm oil is derived from legitimate agricultural land.

Under the EU’s proposed directive, which may be finalised by next year, production of biofuels will be encouraged from those vegetable oils that have been grown without causing damage to the environment.

Malaysia’s programme will be voluntary. A logo will differentiate branded palm oil from the non-branded volumes.