2014年2月21日星期五

Wilmar to continue buying palm oil from Sarawak


BY DESMOND DAVIDSON
February 20, 2014
A multinational currently in dispute with the Sarawak government over the purchase of crude palm oil (CPO) grown on deforested land and peat swamp will continue to operate in the state.
Singapore-listed Wilmar International Ltd said it was not true they would no longer buy palm oil from Sarawak after state Land Development Minister Tan Sri Dr James Masing said Sarawak would not negotiate with it over its green policy – “no deforestation, no peat & no exploitation”.
Wilmar, whose refineries worldwide, including one in Bintulu, processes nearly half the world's CPO. It said it recognised that smallholders were a critical part of the industry and would be “developing a programme in conjunction with various stakeholders to help local smallholders and farmers develop their native customary (NCR) land responsibly”.
“The livelihoods of local indigenous communities and smallholders should not and must not be compromised,” it said in an email reply to queries by The Malaysian Insider.
“Our business is fully integrated and we are dependent on supply from many independent suppliers, it is, and was never our intention to exclude suppliers or to put a stop to expansion and growth of the industry, especially in Sarawak, where we have been operating for many years.
“Our policy will not affect our purchase of oil from suppliers who had previously developed tracts of peatland or from smallholders,” it added.
To advance its greening policy, Wilmar said it was ready to offer assistance, in the form of technical and financial support, “to help these farmers towards sustainable development”.
“We would also like to reach out to various government agencies to work together to look into the areas being proposed for palm development for local communities.
“Palm oil is an excellent agricultural crop with high oil yield that can help address food security issues, alleviate poverty and develop local economies.”
Masing said Wilmar’s policy and threat would put some 18,000 smallholders participating in the state's poverty eradication programme at risk.
These smallholders make on average RM227 a month on a hectare from their smallholding by selling their fresh fruit bunches (FFBs) to the 41 mills throughout the state, which in turn supply CPO to Wilmar.
“We will not negotiate with Wilmar or anybody else on our oil palm policy. The wellbeing and livelihood of our rural people are not up for negotiation,” Masing said last week.
In apparent reference to Masing's accusation that Wilmar it was “being used by the sunflower and soya bean producers” in a new anti-oil palm campaign, the company said it believed there was no reason for a confrontational approach between green lobby groups and the palm industry.
In explaining its recently launched green policy, Wilmar said despite it having adopted responsible practices in its plantations since the roundtable on sustainable palm oil (RSPO) standards were introduced, the company was still accused of causing deforestation by certain civil society groups because of its buying policy from third-party suppliers rather than its own operational practices.
“After much deliberation, we felt that with time and effort, it is possible to make our supply chain sustainable if we explain to our suppliers the commercial justification for sustainable palm development and also help them towards that goal.”
Masing said oil palm in the state is only grown in two areas – plantations carved out of the forests and peat swamp. – February 20, 2014.

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