Green standard: Children playing with fresh fruit bunches at an oil palm plantation in Sarawak. The MSPO can issue sustainable palm oil certification to local growers.
MALAYSIA is expected to launch its national sustainable palm oil certification standard next month.
The long awaited Malaysian Sustainable Palm Oil (MSPO) will be the third such certification standard in the world for palm oil, after the Indonesian Sustainable Palm Oil (ISPO) launched in 2011, and the international multi-stakeholder grouping, the Roundtable on Sustainable Palm Oil (RSPO) set up in 2004.
Advent of MSPO
While some big plantation companies and oil palm planters in Malaysia are contented with the voluntary RSPO certification for the production of certified sustainable palm oil (CSPO) to gain better access into European and other Western markets, there have been grouses among certain oil palm growers who face difficulties in complying with the RSPO principles and standards due to the differing views of auditors, costly certification charges, and evolving criteria.
In response to pleas by several mid-tiered and smaller oil palm players in the country, the Government has mandated the national palm oil custodian, the Malaysian Palm Oil Board (MPOB), to come up with a Malaysian standard for use by the local industry as an alternative to RSPO.
In 2011, the Indonesian Palm Oil Association (better known as GAPKI) which represents 500 member companies decided to pull out of the RSPO grouping to show support for its own CSPO certification, the ISPO.
Apart from taking over Malaysia’s traditional top spot in oil palm hectarage and CPO production in the world, Indonesia has even moved ahead of Malaysia in terms of having its own national palm oil certification.
Voluntary or mandatory
According to MPOB Deputy Director-General (Research & Development) Dr Ahmad Kushairi Din, the MSPO will be transparent for the benefits of producers, traders, consumers, the public as well as regulatory bodies.
For now, MSPO certification is on a voluntary basis for oil palm plantation companies and planters in the country, he says at a recent palm oil conference in Kuala Lumpur.
“Pending consultation with the industry, the Government may consider making it a compulsory standard in stages,” he adds.
With almost 20% of the local palm oil industry under voluntary RSPO certification, Malaysia needs to seriously explore whether the MSPO standard should be made mandatory among all the oil palm planters in the country.
The ISPO standard for example is deemed mandatory to all oil palm planters in the Indonesia starting mid-2014, while RSPO certification is on a voluntary basis for interested oil palm planters globally.
Development stages
The MSPO standard is developed by the MPOB together with the oil palm industry and relevant government agencies, guided by Sirim Bhd.
The first draft of the MSPO was ready in March 2011, which was circulated to the industry for comments. Based on industry feedback, the MSPO draft was revised based on the national interpretation of RSPO.
The MSPO is divided into four parts: general principles; general principles for independent smallholders; general principles for oil palm plantations and organised smallholders; and general principles for palm oil mills.
As required of the development of a Malaysian standard, the MSPO drafts were posted on Sirim’s website for public comments; the first part from October to November 2012, and the second from February to March 2013.
Subsequently, the MSPO was approved by the Science, Technology and Innovation Minister on Sept 5 last year. Dr Ahmad Kushairi points out that the estimated time frame from application to certification of the MSPO is eight to 12 months.
“This timeframe is comparable to those of other certification schemes, which vary from one to three years. It is important to note that the MSPO Phase 1 audit may be omitted for premises with prior recognised sustainability certification, such as the RSPO and the International Sustainability and Carbon Certification (ISCC). This would shorten the time frame for MSPO certification by an estimated four months,” he says.
In Malaysia, most of the major oil palm plantation companies are members of the RSPO, with many of their palm oil mills and plantations RSPO-certified.
This would mean that these planters will immediately qualify and fast tracked to get MSPO certification.
Go global
Malaysian Estate Owners Association president Boon Weng Siew says the MSPO should target the world market, and not just focus on emerging markets.
He points out that although China, India and Pakistan are traditionally major importers of palm oil, the commodity is widely used in food and non-food items in Europe and other Western countries.
Furthermore, the MSPO should have its own national standard rather than mimic the generic RSPO principles and criteria, he says.
Malaysia is currently the second largest producer of RSPO-certified sustainable palm oil at 4.3 million tonnes, accounting for 42% of the total volume of CSPO produced globally.
“Malaysian plantations which have been RSPO-certified may be automatically certified under MSPO to give the local CSPO an early start in the world market. If the global market can accept the RSPO certification standard, I believe MSPO can also be accepted in the long run.”
On the Government’s plan for MSPO to be on a voluntary basis, Boon prefers the MSPO to be made mandatory for all oil palm planters in Malaysia, with a grace period of three to five years.
Source : The Star
