24/06/2009 (The Star Online), Kuala Lumpur - Issues on European buyers’ reluctance to pay a premium price on certified sustainable palm oil, Malaysia’s stagnant palm oil yield, human capital, biofuel viability, food versus fuel debate, environmental and sustainability were the highlights at the 6th International Planters Conference (IPC 2009) yesterday.

At a panel discussion, The Incorporated Society of Planters (ISP) finance committee chairman MR Chandran told oil palm planters to eliminate their “cost control” mindset and focus on increasing productivity and production in their estates.

He said the poor growth rate in Malaysia’s palm oil yield must be seriously addressed, particularly with the cost of production increasing by 3% to 4% annually amid the downtrend in crude palm oil (CPO) prices.

Malaysian Palm Oil Council (MPOC) chief executive Tan Sri Yusof Basiron, meanwhile, said it was wrong for non-governmental organosations and environmentalists to attack oil palm plantation players on claims of deforestation.

On comparisons made between the 30% land use pattern in developed countries and 27% in tropical developing countries that produced oil palm, he said: “While there is a similar proportion of land devoted to agriculture, palm oil producers have retained much higher forest cover averaging 54% compared with developing countries of about 34%.”

Given Malaysia’s and Indonesia’s status as developing countries, Yusof said: “To progress, we need to use our land for oil palm cultivation to generate growth in our economy and export earnings.”

Sime Darby Plantations Sdn Bhd senior vice-president II Syed Mahdhar Syed Hussain called for oil palm players – namely Malaysian Palm Oil Association, MPOC, Malaysian Palm Oil Board, ISP and Indonesian palm oil producers – to stand united in promoting the importance of the Roundtable on Sustainable Palm Oil certification.

Meanwhile, Malaysian Biodiesel Association president Tan Sri Abi Musa Asa’ari Mohamed Nor said the association was working closely with the Government to formulate strategies to ensure the survival of the 22 biodiesel players in the country.