1. Trade & Environment Dimensions from Oil Palm Seed to Palm Oil
4/20/2017
Trade & Environment Dimensions from Oil Palm Seed to Palm Oil
Tony Liwang
Sinar Mas Agro Resources and Technology (SMART) Research Institute
Sinar Mas Agribusiness & Food
Indonesia
Sub Regional Workshop on the Trade and Environment
Jakarta, July 26-27, 2006
ASEP/GPP EPI....Ismu

2. Outline 1. Palm Oil for Food & Non Food Uses 2
Outline 1. Palm Oil for Food & Non Food Uses 2. World Edible Oil Production & Consumption 3. Indonesian Palm Oil & Food Safety Regulations 4. Palm Oil Process Chain Management Oil Palm Seed Production Oil Palm Plantation Palm Oil Mill Palm Oil Refinery 5. Today’s Challenge
Sub Regional Workshop on the Trade and Environment, Jakarta, July 26-27, 2006

3. Outline 1. Palm Oil for Food & Non Food Uses 2
Outline 1. Palm Oil for Food & Non Food Uses 2. World Edible Oil Production & Consumption 3. Indonesian Palm Oil & Food Safety Regulations 4. Palm Oil Process Chain Management Oil Palm Seed Production Oil Palm Plantation Palm Oil Mill Palm Oil Refinery 5. Today’s Challenge
Sub Regional Workshop on the Trade and Environment, Jakarta, July 26-27, 2006

4. Food Uses of Palm Oil and Kernel Palm Oil
Cooking Oil
Deep Frying Oils
Margarine & Spreads
Bakery Fats (Shortenings)
Cocoa Butter Fats
Confectionary Fats
Ice Cream Fats
Infant Nutrition Fats
. . .
Food Uses of Palm Oil and Kernel Palm Oil
Sub Regional Workshop on the Trade and Environment, Jakarta, July 26-27, 2006

5. Surfactants & Lubricants – Grease
Soap
Tupperware
Bio Fuel
Cosmetic
Candle / Wax
Sub Regional Workshop on the Trade and Environment, Jakarta, July 26-27, 2006

6. Outline 1. Palm Oil for Food & Non Food Uses 2
Outline 1. Palm Oil for Food & Non Food Uses 2. World Edible Oil Production & Consumption 3. Indonesian Palm Oil & Food Safety Regulations 4. Palm Oil Process Chain Management Oil Palm Seed Production Oil Palm Plantation Palm Oil Mill Palm Oil Refinery 5. Today’s Challenge
Sub Regional Workshop on the Trade and Environment, Jakarta, July 26-27, 2006

7. Development of World Palm Oil Production
World Edible Oils & Fats Production & Consumption
Development of World Palm Oil Production
Sub Regional Workshop on the Trade and Environment, Jakarta, July 26-27, 2006

8. Development of World Palm Oil Consumption
World Edible Oils & Fats Production & Consumption
Development of World Palm Oil Consumption
Sub Regional Workshop on the Trade and Environment, Jakarta, July 26-27, 2006

9. Productivity of Edible Oils ( total oil in ton Ha-1)
World Edible Oils & Fats Production & Consumption
Productivity of Edible Oils ( total oil in ton Ha-1)
Sub Regional Workshop on the Trade and Environment, Jakarta, July 26-27, 2006

10. World Edible Oils & Fats Production & Consumption
Some facts : The world production of Oils and Fats in 2004 was around million tons, of which 80% was used for Food and 20% for Non Food purposes Two oils & fats sources determine the market, i.e. Palm Oil and Soybean Oil, each of which is about 30 million tons per annum Palm Oil supplies at least 22% of the global demand for Oils & Fats About 50% of the global export trade in Oil & Fats depends on Palm Oil
Sub Regional Workshop on the Trade and Environment, Jakarta, July 26-27, 2006

11. World Edible Oils & Fats Production & Consumption
Some facts (cont’d) : About 50% of the Palm Oil produced in the world is used by four equally big users: EU 25 countries, China India, and last but not least the Indonesian domestic market Total European Palm Oil consumption is 13% of world consumption The import of Palm Oil (including Palm Kernel Oil) in the EU has increased enormously from 2.7 million MT in 1997 to million MT in (Oil World Annual 2005) The Palm Oil imported by the EU 25 is mainly from Indonesia and Malaysia
Sub Regional Workshop on the Trade and Environment, Jakarta, July 26-27, 2006

12. World Edible Oils & Fats Production & Consumption
Some facts (cont’d) : The EU 25 importation of Palm Oil is mainly coming through the Netherlands as the centre for palm oil distribution to other countries in Europe The highest rate of the consumption of the Palm Oil in Europe is UK, followed by the Netherlands and Germany. These three countries contribute about 60% of the Palm Oil demand in EU Palm Oil as Food and Feed needs to fulfill the EC Regulation / 2002 as basis for the approaches to the Food Safety Palm Oil Business Initiative has formed the Roundtable on Sustainable Palm Oil (RSPO) to promote the sustainable supply chain of palm oil, in relation to Planet – People – Profit (3 P’s)
Sub Regional Workshop on the Trade and Environment, Jakarta, July 26-27, 2006

13. World Edible Oils & Fats Production & Consumption
Some facts (cont’d) : The Roundtable on Sustainable Palm Oil (RSPO) was initiated in April 2004 by different stakeholders in palm oil business (producers, consumers, retailers, traders, bankers, NGO’s, etc.). RSPO has grown rapidly in size, complexity, and accomplishments. Now (2 years after, 2006), the number of members of RSPO is more than 140 members. RSPO Priciples & Criteria’s has been developed and carried out by the members : 1. Commitment to transparency 2. Compliance with applicable law and regulations 3. Commitment to long-term economic and financial viability 4. Use of appropriate best practices by growers and millers 5. Environmental responsibility and conservation of natural resources and biodiversity 6. Responsible consideration of employees and of individuals and communities affected by growers and mills 7. Responsible development of new plantings 8. Commitment to continuous improvement in key areas of activity
Sub Regional Workshop on the Trade and Environment, Jakarta, July 26-27, 2006

14. Outline 1. Palm Oil for Food & Non Food Uses 2
Outline 1. Palm Oil for Food & Non Food Uses 2. World Edible Oil Production & Consumption 3. Indonesian Palm Oil & Food Safety Regulations 4. Palm Oil Process Chain Management Oil Palm Seed Production Oil Palm Plantation Palm Oil Mill Palm Oil Refinery 5. Today’s Challenge
Sub Regional Workshop on the Trade and Environment, Jakarta, July 26-27, 2006

15. 4/20/2017
Important EU Regulations on Food and Feed Safety   White Paper on Food Safety   COMMISSION REGULATION (EC) No 466/2001 of 8 March 2001 setting maximum levels for certain contaminants in foodstuffs   REGULATION (EC) No 178/2002 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 28 January2002 laying down the general principles and requirements of food law, establishing the European Food Safety Authority and laying down procedures in matters of food safety   REGULATION (EC) No 852/2004 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 29 April 2004 on the hygiene of foodstuffs
Sub Regional Workshop on the Trade and Environment, Jakarta, July 26-27, 2006
ASEP/GPP EPI....Ismu

16. 4/20/2017
Important EU Regulations on Food and Feed Safety (cont‘d) REGULATION (EC) No 853/2004 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 29 April 2004 laying down specific hygiene rules for food of animal origin   REGULATION (EC) No 854/2004 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 29 April 2004 laying down specific rules for the organisation of official controls on products of animal origin intended for human consumption   REGULATION (EC) No 882/2004 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 29 April 2004 on official controls performed to ensure the verification of compliance with feed and food law, animal health and animal welfare rules   REGULATION (EC) No 183/2005 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 12 January 2005 laying down requirements for feed hygiene
Sub Regional Workshop on the Trade and Environment, Jakarta, July 26-27, 2006
ASEP/GPP EPI....Ismu

17. Indonesian Palm Oil & Food Safety
Indonesian Laws & Regulations “from Farm to Table” Law UU No. 7/96 for Food Law UU No. 8/99 for Customer Protection Govt. Regulation PP 28/ for Food Safety, Quality, and Nutrition Health Ministry Regulation Permenkes RI No. 722/Menkes/Per/IX/88 for Food Additive Materials
Sub Regional Workshop on the Trade and Environment, Jakarta, July 26-27, 2006

18. Indonesian Palm Oil & Food Safety
Area of Oil Palm Plantations in Indonesia based on the land ownership (in Ha)
Year
Smallholders
Government
Private Plantation
Total
1998
1999
2000
2001
2002
2003
2004*
estimated figure
Total Area used for Oil Palm Plantations is equal to approx. 3% of the Total Indonesian Forest land.
Sub Regional Workshop on the Trade and Environment, Jakarta, July 26-27, 2006

19. Outline 1. Palm Oil for Food & Non Food Uses 2
Outline 1. Palm Oil for Food & Non Food Uses 2. World Edible Oil Production & Consumption 3. Indonesian Palm Oil & Food Safety Regulations 4. Palm Oil Process Chain Management Oil Palm Seed Production Oil Palm Plantation Palm Oil Mill Palm Oil Refinery 5. Today’s Challenge
Sub Regional Workshop on the Trade and Environment, Jakarta, July 26-27, 2006

20. Integrated Palm Oil Process Chain Management
Integrated Palm Oil Process Chain Management Traceability = Chain of Custody
UP-STREAM
MID-STREAM
DOWN-STREAM
Oil Palm Seed Production
Oil Palm Plantation
Palm Oil Mill
Palm Oil Refinery
Sub Regional Workshop on the Trade and Environment, Jakarta, July 26-27, 2006

21. 4.1. Oil Palm Seed Production
Integrated Palm Oil Process Chain Management
GMO Free Planting Materials
Parents materials used are crossed from the
registered pedigree (by the Indonesian Government)
Documentation and Certification
ISO 9001:2000 Quality Management System for Seed Production
ISO 9001:2000 Quality Management System for Research & Development
ISO Accreditation of Laboratory Management System
Traceability for Oil Palm Seed Production with the Barcode Management System
Sub Regional Workshop on the Trade and Environment, Jakarta, July 26-27, 2006

22. 4.2. Oil Palm Plantation GMO Free Planting Materials
Integrated Palm Oil Process Chain Management
GMO Free Planting Materials
High Conservation Value Forest (HCVF)
in collaboration with WWF
Better Agricultural Practices (BAP)
Organic & In-organic Fertilizer Mgmnt
Safety Pesticide Use
Integrated Pest Management (IPM)
Integrated Weed Management (IWM)
Waste Management
(Recycling, Reuse, Recover – 3R)
Environment Impact Assessment (EIA)
Sub Regional Workshop on the Trade and Environment, Jakarta, July 26-27, 2006

23. 4.2. Oil Palm Plantation Documentation & Certification
Integrated Palm Oil Process Chain Management
Documentation & Certification
ISO 9001:2000 Quality Mgmnt System
ISO 14001:2004 Env. Mgmnt System
Traceability for Oil Palm Plantation
Area Unit Identification
(block by block, @ 30 Ha)
GIS Map & Information System
SAP Data & Information System
Harvesting and Transportation
Sub Regional Workshop on the Trade and Environment, Jakarta, July 26-27, 2006

24. 4.3. Palm Oil Mill Good Manufacturing Practices (GMP) Waste Management
Integrated Palm Oil Process Chain Management
Good Manufacturing Practices (GMP)
Waste Management
(Recycling, Reuse, Recover – 3R)
Environment Impact Assessment (EIA)
Documentation & Certification
ISO 9001:2000 Quality Mgmnt System
ISO 14001:2004 Env. Mgmnt System
Traceability for Palm Oil Mill
Area Unit Identification
SAP Data & Information System
Harvesting and Transportation
Sub Regional Workshop on the Trade and Environment, Jakarta, July 26-27, 2006

25. 4.4. Oil Palm Refinery Waste Management
Integrated Palm Oil Process Chain Management
Waste Management
(Recycling, Reuse, Recover – 3R)
Environment Impact Assessment (EIA)
Documentation & Certification
ISO 9001:2000 Quality Mgmnt System
ISO 14001:2004 Env. Mgmnt System
HACCP
Codex Alimentarius
Traceability for Palm Oil Refinery
Area Unit Identification
Transportation & Logistic
Sub Regional Workshop on the Trade and Environment, Jakarta, July 26-27, 2006

26. Outline 1. Palm Oil for Food & Non Food Uses 2
Outline 1. Palm Oil for Food & Non Food Uses 2. World Edible Oil Production & Consumption 3. Indonesian Palm Oil & Food Safety 4. Palm Oil Process Chain Management Oil Palm Seed Production Oil Palm Plantation Palm Oil Mill Palm Oil Refinery 5. Today’s Challenge
Sub Regional Workshop on the Trade and Environment, Jakarta, July 26-27, 2006

27. Today’s Challenge
Integrated Palm Oil Process Chain Management
Food production, including Palm Oil, is expected to grow at least at the same pace as population growth.
Therefore it will be an increasing demand for edible oils and agricultural products in the future
At the same time, the demand for food safety and security and the awareness towards conservation of the environment and sustainability of the Palm Oil industry get more attention
These issues are highlighted in several international forums and meetings
Exchange views and information within all stakeholders (producers, consumers, retailers, financial institutions, NGO’s, and governments) are needed to improve the current global trade conditions.
Sub Regional Workshop on the Trade and Environment, Jakarta, July 26-27, 2006

28. Today’s Challenge
Integrated Palm Oil Process Chain Management
Collaboration of stakelholders in the Roundtable of Sustainable Palm Oil can be applied also to other commodities, e.g. Cacao, Coffee, etc.
Smallholders oil palm plantations and their small scale enterprises need more attention and effort to fulfill all requirement needed for food safety and security in each step of palm oil process chain
Unfair trade and tax barriers have to be avoided in order to meet the objective of the Millenium Goal, i.e. Poverty Elaviation. Most commodities are produced by smallholders in the developing countries with limited capability and capacity to meet the high food quality required by the consumers in the developed countries.
Capacity building on the awareness of food quality and safety and environment to all stakeholders, especially to smallholders, is needed.
Intensive Dialogue and Forum of G to G and B to B initiatives for each commodity are needed to bridge the need among the stakeholders.
Sub Regional Workshop on the Trade and Environment, Jakarta, July 26-27, 2006

29. 4/20/2017
Great things are not done by an impulse but by a series of small things brought together
Vincent van Gogh
Sub Regional Workshop on the Trade and Environment, Jakarta, July 26-27, 2006
ASEP/GPP EPI....Ismu

30. Thank You Terima Kasih for more information :
4/20/2017
Thank You Terima Kasih
for more information :
ASEP/GPP EPI....Ismu