Malaysia to showcase sustainable palm oil practices to EU delegation

 Minister Johari Ghani stresses the importance of adopting sustainable practices, especially for exporters.

Plantation and commodities minister Johari Ghani said 85% of smallholders are now MSPO-compliant.

KOTA KINABALU:

 The plantation and commodities ministry will brief the European Union (EU) on Malaysia’s sustainable palm oil practices during a planned visit by an EU delegation between September and October.

Minister Johari Ghani said while the EU had recognised the Malaysian Sustainable Palm Oil (MSPO) certification, Malaysia wants full acceptance of its sustainability and traceability systems, reported The New Straits Times.

“I’m waiting for them to visit so they can see firsthand how we implement our practices,” he said after launching the Malaysian International Cocoa Fair in Kota Kinabalu today.

This came in response to the EU’s recent classification of Malaysia as a “standard risk” country under its Deforestation Regulation. The Malaysian Palm Oil Association had warned that this could hurt smallholders, even those compliant with MSPO.

Johari stressed the importance of adopting sustainable practices, especially for exporters. While large companies already control and certify their full supply chains, 85% of smallholders are now MSPO-compliant, he said.

He also said Malaysia was moving towards climate-smart agriculture in the cocoa sector and had begun a low-carbon cocoa feasibility study.

Johari reaffirmed Malaysia’s commitment to net-zero emissions by 2050, a 30% reduction in methane emissions by 2030, and maintaining at least 50% of forest cover which currently stands at 54%.

“We’ve implemented a no-deforestation policy and must maximise the land we have. Sustainable farming will lead to higher yields and better prices for farmers,” he said.

Malaysia remains among the world’s top five cocoa grinders, processing 370,000 tonnes of cocoa beans annually. Cocoa exports rose 29%, from 530,000 tonnes in 2023 to 690,000 tonnes in 2024, valued at RM15 billion.

To address global cocoa shortages and boost farmer income, the government, through the Malaysian Cocoa Board, is working to revitalise plantations. Cocoa bean output rose 65% to 445 tonnes in 2024.

Johari said Malaysia was focusing on premium cocoa varieties such as fine-flavour, single-origin, and organic beans to meet the growing global demand for quality and health-conscious products.

“This will help position Malaysia at the high end of the global cocoa value chain,” he said. - FMT