8 March 2024

2 minute learn

Palm oil producer Golden Agri Assets (GAR) intends to keep up its exports to the European Union at round 800,000 metric tons subsequent yr even after the EU’s landmark new deforestation regulation takes impact, Reuters reported, citing an organization official.

The European Parliament authorized a regulation final April that may ban imports of seven commodities together with palm oil, soyoil, and beef if they’re linked to destruction of the world’s forests.

“We need to proceed buying and selling within the EU. It isn’t the most important of our export markets but it surely is a crucial one – clearly, a premium-paying one. We need to keep in that house,” Anita Neville, the agency’s chief sustainability and communications officer, stated in an interview in Kuala Lumpur this week.

Singapore-based Golden Agri exports 700,000-800,000 tons of crude palm oil and laurics to the EU yearly, which represents 10% to fifteen% of its income, she stated.

The corporate believes that it is own-sourced palm oil is compliant with the EU Deforestation Regulation (EUDR), and has traceability instruments in place, Neville stated.

It’s arranging its provide chain, together with rerouting vehicles and getting ready separate vessels to segregate EUDR grievance merchandise from these with out proof of land legality, geolocation, and that they’re deforestation-free.

“GAR has been engaged on getting ready for EUDR for 2 years and we really feel moderately assured that we’re effectively positioned to conform to EUDR,” she stated.

Whereas Golden Agri will prioritise its personal merchandise when EUDR takes impact on Dec 30 this yr to make sure compliance and keep away from monetary penalties, in the long run it wants its smallholder suppliers to assist meet demand, particularly for palm kernel oil.

“To attain good compliance from day 1, you will notice some folks excluding smallholders due to the extent of threat,” Neville stated.

However, she added, “this rule isn’t going away.”

“So we additionally must be considering how we construct our system and alternative to convey extra smallholders in day 21, 51, and so forth,” Neville stated, including that the corporate is engaged on lists of compliant third events.

The world’s two greatest palm oil producing nations, Indonesia and Malaysia, have voiced issues that the deforestation regulation could possibly be detrimental to small farming companies.