The premium for certified palm oil should be at US$50 per tonne compared to US$8 dollar per tonne currently in order to support the sustainable palm oil industry due to the costly certification process.
In stating this, Plantation Industries and Commodities Minister Tan Sri Bernard Dompok said some of Roundtable of Sustainable Palm Oil (RSPO) members who are non-producers were not fully supportive of the high premium certified sustainable palm oil.
“At the moment there’s no premium paid by the market, so the market needs to recognise the effort of plantations companies,” Dompok told reporters after officiating the International Palm Oil Congress (PIPOC) 2009 here on Monday.
Currently, a total planted area of 157,000 hectares in the country are producing more than one million tonnes of palm oil which have been certified by the RSPO.
“But the takers in the markets are not there, and I am very sad when the plantation companies tried their best to produce it but this is not responded by the market,” Dompok said.
Malaysia and Indonesia have done very well to support the sustainable palm oil production, according to him.
In Malaysia, close to 40 per cent of the planted areas are managed by smallholders and as such, outreach efforts needed to be made to bring on board this particular segment of the industry, he said.
The Malaysian oil palm industry has been actively involved in the challenge to produce palm oil under the RSPO ambit, Dompok said.
In addition to ensuring sustainable production, the industry has also voluntarily adopted the Code of Practices (COPs) drawn up by the Malaysian Palm Oil Board (MPOB), he said.
The code covers the entire supply chain of oil palm and palm oil, incorporating elements of sustainability and food safety to ensure the production of sustainable and environmentally friendly palm oil for the global community.
“The adoption and implementation of COPs in the palm oil supply chain is pertinent and forms part of the industry strategy to comply with food safety and quality requirements of importing countries,” the minister said.
On another development, Dompok said the RM100 million oil palm research facility embarked by the MPOB and plantation companies had shown encouraging results in palm oil production.
The MPOB research has successfully generated over 400 sequences representing 90 per cent of the functional genes in oil palm, he said.
The centre was set up to help boost the oil palm industry’s productivity through a better understanding of the plant’s genetic code.
In a move to acquire the latest techniques in sequencing complete oil palm genome using new generation sequencers, the MPOB is now collaborating with South Korea’s Macrogen and US-based Orion Genomics.
More Recent Palm Oil News 
- CPO Rises To Two Week High; Industry Data In Focus
- Crude Palm Oil Ends Up On Weekend Short Covering; Upside Limited
- Crude Palm Oil Recovers Late On Short Covering
- Crude Palm Oil Ends Down As Demand Prospects Weaken
- Crude Palm Oil Rises Slightly; Weak Demand Limits Upside
- Crude Palm Oil Ends Up On South America Crop Worries
- Crude Palm Oil Rises On Pre-Holiday Short-Covering
- Crude Palm Oil Falls Due To Bearish Export Outlook
- Crude Palm Oil Ends Higher On South America Weather
- Crude Palm Oil Ends Down On Profit Taking; USDA Report In Focus
- Crude Palm Oil Rises In Light Trade; USDA Data In Focus
- Crude Palm Oil Steady; South America Weather May Underpin
- Crude Palm Oil Ends Up In Light Trade; Fresh Cues Awaited
- Crude Palm Oil Ends Up On Weather Concerns; More Gains Likely
- Crude Palm Oil Ends Down On Profit Taking, Europe Worries
PRO Palm Oil Live Market News
- Malaysia Feb. 1-10 Palm Oil Exports Likely Reached 338,000 Tons -Executives
- *Malaysia Feb. 1-10 Palm Oil Exports Likely Reached 338,000 Tons -Executives
- China Dalian Commodity Exchange Grain Stocks, Feb 09
- BMD Crude Palm Oil (CPO) Rebounds But Higher Stocks Cap Gains
- China Dalian Grain Futures Closing Prices, Volume
- Malaysian AM Cash Market Prices For Palm Oil – Feb. 9
- BMD Crude Palm Oil (CPO) Falls With Other Commodities; Stocks Weigh
- BMD Crude Palm Oil (CPO) Slips In Choppy Trade; MYR3,120 Support
- BMD Crude Palm Oil (CPO) Tipped To Open Up But Upside Limited
- Asia-Pacific Commodities Events Calendar
- Southeast Asia Palm Oil Weather – Feb 8
- European Veg Oil PM Palm Oil & Lauric Oil Prices – Feb 8
- European Veg Oil AM Palm Oil & Lauric Oil Prices – Feb 8
- India Commodity Prices Including Palm Oil – Agriculture
- CPO Rises To Two Week High; Industry Data In Focus
