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[2008,"December","ARGENTINA - export taxation:  In Argentina, export taxes on wheat and maize have been lowered by, respectively, 18 and 20 percent. By contrast, the duties for oilseeds and their products remained unchanged. From 4 December, the following base export duties apply to grains (in percent, ad valorem): wheat 23, maize 20, soybeans 35, sunflowerseed 32. "]
[2008,"December","INDIA - oil import duties:  Reportedly, India has decided not to re-introduce duties on the importation of crude edible oils (notably palm oil) for the time being - in spite of the recent price falls in the international and domestic oilseed and oil markets. When prices started to surge in 2007, hitting domestic consumers, import duties were lowered and then suspended altogether. Reportedly, import duties will only be re-imposed if domestic oilseed prices drop below the currently applied official minimum support prices for farmers. The only exception is crude soy oil, for which a 20 percent import duty has been reinstated in November.  "]
[2008,"December","PARAGUAY - land use policy:  Reportedly, in an effort to calm current protests against foreigners owing large tracts of land - in particular of soybean farms - the government is considering to enforce a long-standing law that does not allow foreigners to buy agricultural land from citizens."]
[2008,"December","UKRAINE - domestic price regulation: With a view to counter the marked fall in domestic prices of sunflowerseed, according to unofficial sources, the government has taken steps to add sunlflowerseed to the list of products whose prices are regulated by the state. Such measure will be limited to the 2008/09 marketing season. The official price band has yet to be announced."]
[2008,"December","UKRAINE - export policy:  Reportedly, in response to falling international prices and deteriorating export prospects, export duties on sunflowerseed could be suspended during the current marketing season. At the same time, the introduction of export quotas might be required to ensure adequate coverage of domestic consumption needs. Export quotas could amount to 1.2 to 2 million tons and might be allocated primarily to traders that purchase sunflowerseed at the official minimum price."]
[2008,"December","EUROPEAN UNION - common agricultural policy:  The recently completed review of the European Union’s agrarian policies (“Health Check”) carries no major, direct implications for oilseed crops. The only relevant measure is the abolishment (in 2010) of the energy crop premium of € 45/ha, which applies to rapeseed grown for biodiesel production. Other changes applying to arable crops in general include: the permanent abolition of compulsory land set aside (from 2009); the full decoupling (in 2010) of production payments; rules regarding minimum and maximum payments to individual farmers; the diversion of some direct farmer payments to rural development projects; the simplification and update of cross compliance requirements concerning cultivation practices and related environmental aspects."]
[2008,"December","EUROPEAN UNION - GMO approval:  Approval for the importation, marketing and use in food and animal feed across the 27 nation market has been granted for a GMO soybean known as second generation Roundup Ready Soybean. The new variety started to be grown in North America and the approval by the EU - an important buyer of USA grown soybeans - was eagerly awaited by the industry on both sides of the Atlantic. The permission is valid for 10 years and the bean (and any product derived from it) will be subject to the EU’s strict labelling and traceability requirements. The next GM product in line for potential approval is a new variety of rapeseed that has been developed and is already cultivated in Canada."]
[2008,"December","MALAYSIA/INDONESIA - supply control measures:  Reportedly, the two countries agreed to take coordinated action to address the current slide in palm oil prices and the slow down in demand for palm oil anticipated for next year as a result of global economic recession. The key means to temporarily slow down production growth will be to intensify replanting of old trees. A total of 300 000 ha is being earmarked for this purpose. Farmers that participate in the replanting programme will be given access to high quality planting material at subsidized prices."]
[2008,"December","MYANMAR - oilcrop promotion:  In an effort to reduce the country’s dependence on imports to meet domestic demand of edible oil, the country has embarked on a programme to encourage the cultivation of oilcrops. Crops promoted include groundnut, sunflowerseed and sesame. Improvements in transport infrastructure to facilitate marketing are also envisaged. Furthermore, foreign private companies could be allowed to participate in setting up an oil palm industry. The government programme is receiving support from OPEC as well as technical assistance from FAO."]
[2008,"December","GERMANY - biofuel policies:  Reportedly, national mandatory targets for future biofuel admixture in transportation fuels are being adjusted downward. Furthermore, from 2015, the calculation basis will be switched from the energy content of biofuels to the greenhouse gas emission savings resulting from their use. Of particular concern to the oilcrop sector is a provision that prevents the use of palm oil and soybean oil under the mandatory schemes and preferential taxation system until criteria for the sustainable production of biofuel feedstock are in place."]
[2008,"December","CHINA - state procurement:  After prices for domestically grown grains and oilseeds have declined as a result of record crops and weak demand the government decided to buy soyabeans, rapeseed and other arable crops for state reserves in an effort to support prices, protect farmers’ incomes and stabilize plantings in 2009. Imported soSoybeans State soybean reserves were not maintained before. Reportedly, 1.5 million tons have been bought and funding has been made available for another 2.5 million tons - compared to a total domestic crop of about 16 million tons. Domestic soybean farmers find it increasignly diffuclt to compete with imported soybeans."]
[2008,"December","THAILAND - palm oil support:  After raising last month the reference price at which farmers sell palm fruit to crushers, the government plans to purchase palm oil from oil mills at a guaranteed price, hoping to prevent prices from falling further. The recent decline in mineral oil prices has made the use of palm as biodiesel feedstock uneconomic, leading to an excess of supply over demand."]
[2008,"December","Sustainable palm oil: A first shipment of certified and traceable palm oil - produced in Malaysia in accordance with RSPO’s sustainability criteria - has been delivered to the European Union. But environmental and social groups continue to question the value of the certification pointing at environmentally and socially unsustainable production methods in the countries of origin."]
[2009,"January","ARGENTINA - grains export taxation:  In Argentina, export taxes on wheat and maize have been lowered by, respectively, 18 and 20 percent. By contrast, the duties for oilseeds and their products remain unchanged - despite the recent sharp drop in global oilseed prices. From 4 December, the following base export duties apply to grains (in percent, ad valorem): wheat 23, maize 20, soybeans 35, sunflowerseed 32."]
[2009,"January","EUROPEAN UNION - biofuel policies: The EU decided to retain its binding target to have 10 percent of its vehicle fuels sourced with renewable fuels by 2020. To encourage the use of non-food feedstock, second generation biofuels will count double against the target, while feedstock grown in high biodiversity and carbon stock areas will not be admitted. Specific sub-targets according to the type of feedstock used and the form of transport have not been set. By 2017, in order to be counted against the target, biofuels need to achieve at least 50 percent reduction in GHG emission over conventional fuel. For the time being, the carbon footprint of related indirect land use changes will not be taken into account. A further review of these policies is envisaged for 2014."]
[2009,"January","THAILAND - soymeal import tariff: For 2009, the tariff for soymeal (imported from WTO members) has been reduced from 4 to 2 percent. The regulation requiring eligible importers to also purchase domestic soya meal at minimum prices set by the government remains in place."]
[2009,"January","UNITED STATES - biodiesel feedstock: Towards the end of 2008, the use of animal fat as feedstock for biodiesel production has dropped sharply in response to the introduction of stricter biodiesel standards and as prices for vegetable oils abandoned their record level."]
[2009,"January","Certification of ‘sustainable palm oil’: Recently, the first two oil palm plantation companies (both in Malaysia) have been ranked as certified producers of sustainable palm oil based on the criteria developed by the global multi-stakeholder initiative RSPO. Several more companies are expected to gain that status during 2009. A first shipment of certified and traceable palm oil has been delivered to the EU last November."]
[2009,"January","Soybean modification providing benefit to consumer: A high-oleic soybean GM variety developed in the United States is ready for phased introduction in 2009. Compared to conventional soybeans, the new variety features a high oleic acid content, a lower rate of linolenic acid and a reduced percentage of saturated fatty acids. These traits make the oil more stable and versatile in a variety of food applications without the need for hydrogenation, thus allowing to avoid the presence of unhealthy trans fatty acids in food products.      "]
[2009,"January","EUROPEAN UNION - import approval for new GM soybean:  Approval for the importation, marketing and use in food and animal feed has been granted for the new high yielding variety known as “Roundup Ready2Yield”. The variety is expected to be extensively grown in the USA, an important supplier of soybeans to the EU. The permission is valid for 10 years and the bean (and any product derived from it) will be subject to the EU’s strict labelling and traceability requirements. The next GM product in line for potential approval is a new variety of rapeseed that was developed and is ready for cultivation in Canada."]
[2009,"January","UKRAINE - domestic price regulation: With a view to counter the marked fall in domestic prices of sunflowerseed, the government added sunlflowerseed to the list of products whose prices are regulated by the state. Such measure will be limited to the 2008/09 marketing season. The official price band has yet to be announced."]
[2009,"January","CHINA - state procurement:  After prices for domestically grown grains and oilseeds have declined as a result of record crops and weak demand the government decided to buy soyabeans, rapeseed and other arable crops for state reserves in an effort to support prices, protect farmers’ incomes and stabilize plantings in 2009. State soybean reserves were not maintained before. Reportedly, 1.5 million tons have been bought and funding has been made available for another 2.5 million tons (compared to a total domestic crop of about 16 million tons)."]
[2009,"February","MEXICO - oil import duties: Between January and February 2009, the tariffs on crude and refined vegetable oils will be phased out. The country depends heavily on imports of vegetable oil and consumers are reported to have been strongly affected by last year’s surge in prices."]
[2009,"February","MEXICO - income support: In January 2009, the target prices for soybean and rapeseed that are used to determine supplementary income payments to farmers have been adjusted upward by 30-40 percent."]
[2009,"February","GERMANY - biodiesel taxation: In line with the overall policy to gradually scale back support provided to the biodiesel industry, from January 2009 onward, taxation of vegetable oils used as biodiesel feedstock will increase from 0.10 to 0.18 € per litre, while the tax for B-100 is lifted from 0.15 to 0.18 € per litre."]
[2009,"February","UKRAINE - export policies: The plan to suspend the export duty for sunflowerseed until 1st September 2009 (with a view to stimulate trade) has been dropped so as not to hurt the domestic crushing industry. For 2009, the duty has been set at 13% as opposed to 14% before."]
[2009,"February","CHINA - state procurement: Further to last autumn’s purchases (see also issue No.1), the government plans to buy an additional three million tons of soybeans for state reserves. This could raise the total volume of soybean reserves to up to 6 million tons.  However, last year’s actual purchases of soybeans for state reserves have been reported at levels below the original targets.   "]
[2009,"February","BRAZIL - ‘sustainable soybean farming’: A global grain trading and processing company entered into partnership with a local NGO to promote sustainable soybean farming in the country. The initiative aims at reducing the environmental impact of soybean farming and minimizing expansion into environmentally sensitive areas."]
[2009,"February","ARGENTINA - support to farmers: In early January, the government announced plans to provide subsidies on fertilizer and loans for purchasing farm machinery. However, export taxes on oilseeds would not be lowered. Later in the month, the government declared agricultural emergency in the country’s main food producing provinces due to widespread drought – reportedly the worst since 1971. Affected farmers will be allowed to defer various taxes and debt repayments. Unofficial estimates for this season’s soy-crop currently range between 39 and 43 million tons, compared to early-season forecasts around 50 million and last season’s output of 46.2 million.    "]
[2009,"February","JAPAN - carbon footprint labelling: The government has launched a pilot project on voluntary carbon footprint labelling of consumer products, including foods. Products shall be rated based on the level of CO2 emitted during their life cycle."]
[2009,"February","MALAYSIA - palm oil barter trade: For the period 2009-10, USD 70 million worth of palm oil have been earmarked for bartering for fertilizer with the Russian Federation and the Democratic People’s Republic of Korea."]
[2009,"February","UNITED STATES - growing market for soybeans with special traits: Production and trade of soybeans with special traits – notably low-linolenic, food-grade and identity-preserved non-GMO varieties – is growing in importance in the USA. Reportedly, as much as 1.6 million tons of food-grade soybeans are exported annually. An average price premium of 125 USD per ton was reported for non-GMO soybeans."]
[2009,"February","INDONESIA - biodiesel support: Reportedly, the government is considering to subsidize the sale of palm oil-based diesel when low fossil fuel prices compromise the profitability of biodiesel production."]
[2009,"February","EUROPEAN UNION - butter market support: In response to the sharp drop in dairy prices, the Commission has reintroduced export refunds for butter. Furthermore, the period during which aid for private storage of butter is granted has been expanded and state intervention buying of butter may be allowed to exceed pre-determined levels."]
[2009,"March","INDONESIA - oil palm plantations: Reportedly, the government is considering to lift temporary restrictions (in place since late 2007) on the use of peatland forests for oil palm plantations. The measure would allow to increase productivity in the oil palm sector. The restrictions had been introduced to control carbon dioxide emissions associated with the use of peatland."]
[2009,"March","BRAZIL - conventional soybeans: Reversing the trend of recent years, in the state of Parana, farmers’ demand for conventional soybean varieties has grown this season at the expense of GM seed material. Increased interest for conventional varieties is explained by the lower cultivation cost associated with those seeds."]
[2009,"March","CHINA  - state reserves of vegetable oil: After the recent release of reserves to prevent supply shortages and thus price increases, private sources reported that public stocks are being replenished via the importation of oils from South America.          "]
[2009,"March","CANADA - trans fat: The government reported progress towards the reduction of trans fats in food products without increasing the levels of saturated fats. The country had made the requirement to indicate trans fat content in pre-packaged food mandatory and, in 2006, the industry agreed to voluntary limits in the trans fat content of food products."]
[2009,"March","MALAYSIA - biodiesel: Government sources confirmed that blending of diesel fuel with five percent palm oil biofuel will become mandatory on January 2010. This year, all government vehicles will start using the blend. To remain competitive, biodiesel sales shall benefit from a subsidy. Once fully operational the programme is expected to absorb 500 000 tons of palm oil annually."]
[2009,"March","INDIA - state imports of vegetable oil: Following the drop in global and domestic prices for vegetable oils, the importation of oils by state trading agencies for subsequent distribution to poor households has been suspended."]
[2009,"March","EUROPEAN UNION - temporary biodiesel duty: From mid March, imports of biodiesel from the USA will face temporary anti-dumping and anti-subsidy duties. Tariffs ranging from 26 to 41 € per 100 kg are expected to apply for an initial period of six months. Surging imports of biodiesel produced in the USA - and benefiting from government support there - are considered to have severely injured the competing EU biodiesel industry.    "]
[2009,"March","INDIA - trans fat: A recent study confirms that, on average, trans fat levels in vanaspati and other products based on partially hydrogenated oils exceed generally recommended levels. Among refined vegetable oils sold on the market this problem was not detected. Last year, India has joined the list of countries where the trans fat content must be declared on labels. Discussions about revised product standards and the feasibility of introducing binding maximum levels for trans fat are underway."]
[2009,"March","GERMANY - biofuel legislation: The EU Commission has requested that the sustainability criteria included in a national law on the promotion of biofuels be streamlined with the relevant EU directive. As a result, importation of vegetable oils - especially soy and palm oil - for local biodiesel production is expected to resume. Furthermore, new legislation excluding biofuels that have previously received state aids from being eligible for national incentives and mandates will go ahead. Consequently, the importation of biodiesel that has benefited from state aid could become uneconomical."]
[2009,"March","INDONESIA - biodiesel support: The government confirmed its plan to subsidize the sale of biofuels by state owned companies depending on how the prices for fossil fuel and biofuel feedstock (notably palm oil) develop. The subsidy would amount to Rp 1000 per litre of biofuel distributed. Under the currently envisaged level of government funding, the sale of up to 750 000 tons of biofuel could be supported in 2009 - an amount close to the country’s mandatory consumption of biofuels in 2009. Palm oil based biodiesel should account for about three quarters of all biofuel sales.         "]
[2009,"March","FRANCE - biodiesel taxation: Similar to Germany, where taxes on biodiesel and biodiesel feedstock have been raised in January, France has announced that all tax advantages granted to biofuel will be discontinued by 2012."]
[2009,"March","INDONESIA - palm oil exchange: To date the world’s leading producer of palm oil lacks an own exchange and futures market for palm oil; local traders and policy makers are used to follow contracts traded in Malaysia or the EU to determine prices. Now private sources report that physical trading in CPO through a local exchange is going to start later this year. State plantations seem committed to sell at least 20% of their output through the new platform."]
[2009,"March","UNITED KINGDOM and GERMANY - biofuel targets: The rates of mandatory inclusion of biofuels in transportation fuel are being corrected downward in both countries: in the UK, the rate for 2009/10 is expected to be set at 3.25% (down from originally 3.75%), rising gradually to 5% by 2013/14. In Germany, the rate for 2009 is being reduced from initially 6.25% to 5.25%, and shall be frozen at 6.25% from 2010.       "]
[2009,"March","UNITED STATES - special traits soybeans: According to industry sources, the importance of special trait varieties – developed to reduce trans fat and saturated fat content in the human diet – is growing steadily. The swift replacement of traditional soybean varieties with new ones (i.e. low linolenic, high oleic and mid olein/low saturate lines that deliver direct health benefits) is said to have shielded domestic markets from possible disruptions or contractions in consumption."]
[2009,"March","EUROPEAN UNION - olive oil labelling: In July 2009, origin labelling will become mandatory for extra virgin olive oil sold in the Community. The country of origin, or, in the case of blends, the type of blending will have to be displayed. The measure aims at improving guarantees of quality to consumers.    "]
[2009,"March","ARGENTINA - trade control: Reportedly, the government has met with farmer groups and grains exchanges to discuss about the possibility of setting up a national board that directly regulates and controls foreign trade in grains and oilseeds. A state agency charged with the same task, the National Grains Board, was dismantled in the early 1990s."]
[2009,"March","UNITED STATES - farm support rules: Motivated primarily by budgetary considerations, President Obama has called for cuts in farm subsidies over the next decade. Proposals are reported to include the gradual exclusion of large farms from direct payments, reductions in the individual payment caps under the commodity programmes and reduced subsidies for crop insurance. Actual spending for agriculture is determined by the Congress."]
[2009,"April","INDIA - soyoil import tariff: The 20% import duty on crude soyoil introduced last November has been removed again. Soyoil will thus enjoy the same treatment as other crude vegetable oils which are imported duty free since April 2008. By doing away with the duty the price premium for soy oil will be restored to normal levels."]
[2009,"April","EUROPEAN UNION - butter market intervention: After reaching the ceiling of 30 000 tons for automatic intervention buying at fixed prices in early March, the Commission went on purchasing additional butter into intervention at a price slightly below the official intervention price. The purpose of these purchases is to contain oversupply at a period of low market prices."]
[2009,"April","EUROPEAN UNION - GM rapeseed importation: The Commission has approved the importation and processing (but not cultivation) of a GM rapeseed variety for food, feed and other uses for a period of 10 years. The new variety T45 is characterized by tolerance to a particular herbicide and is grown primarily in Canada, whose exports towards the EU are expected to resume thanks to the approval."]
[2009,"April","UNITED STATES - demand for sustainable palm kernel oil: An oleo-chemicals company started to purchase sustainable palm kernel oil certification credits. It is the first step in creating a segregated supply chain for sustainably produced palm kernel oil. By doing so palm kernel oil producers that use more environmentally responsible practices to produce and harvest palm kernel oil are going to be paid a premium.         "]
[2009,"April","ARGENTINA - negotiation progress: Negotiations between the government and farmers regarding economic difficulties that afflict the sector resulted in agreements eliminating export taxes on dairy products, increasing the export quota for beef and guaranteeing a higher price for wheat sold domestically. The tax levied on soybean exports remains unchanged. Plans to set up a grain regulating agency have been postponed."]
[2009,"April","PAKISTAN - INDONESIA trade agreement: Under preferential trade negotiations, Pakistan has agreed to reduce duties on palm oil imports from Indonesia by 10 percent, which would put duties at par with those applied to imports from Malaysia."]
[2009,"April","CANADA - trans fat limits at province level: From October 2009, foods served in restaurants will be subject to specific limits for trans fat content in British Columbia. Since 2006, the industry was following voluntary limits at the federal level."]
[2009,"April","MALAYSIA - palm oil market measures: Government efforts to prevent oversupply on the domestic market continue. Under the 200 000 ha oil palm replanting scheme, by March 63 000 ha were approved, implying a temporary reduction in palm oil output by approx. 220 000 tons. Mandatory use of palm oil based B5-diesel in the entire transportation and industry sector is set to start next January, entailing a market offtake of approximately 500 000 tons of  palm oil. And the increase in the country’s duty free export quota for crude palm oil to 3 million tons in 2009 is expected to stimulate exports."]
[2009,"May","BRAZIL - mandatory biodiesel use: From January 2008, all diesel sales had to include 2 percent of biodiesel, which created a market for about 800 thousand tons of biodiesel. Biodiesel production capacity is reported to have climbed to 2.6 million tons last year. In order to better use this capacity, the mandatory admixture was raised to 3 percent in July 2008, and currently a further increase to 4 percent is under consideration. The obligatory 5 percent blend envisaged for 2013 has been anticipated to 2010. The main feedstock used for biodiesel production is soybean oil; its share in total feedstock use was close to 80 percent in 2008."]
[2009,"June","UNITED STATES, CANADA - new oilseeds varieties: GM varieties containing less saturated fats and thus offering a better health profile are gaining ground in North America. In the USA, commercialization of a new high oleic soybean variety is expected later this year. In Canada, high oleic (or low linoleic) varieties are estimated to account for 10-15 percent of the country’s rapeseed area.  As herbicide resistant and higher yielding strains become available, farmers are increasingly interested in growing these specialty crops."]
[2009,"May","ARGENTINA - herbicide investigation: The government was reported to have set up an inter-ministerial committee to investigate the environment and health impact of glyphosate, the active ingredient in an approved herbicide that is widely used in soybean cultivation (in Argentina as well as in other leading soybean producers)."]
[2009,"May","UNITED STATES - soybean rust resistance: Reportedly, US scientist have identified asian rust resistance genes in soybeans, thus opening the way to the development of resistant cultivars via conventional breeding or biotechnological means. Asian rust represents a major threat to soybean cultivation in many countries. Although fungicide use is effective against the disease, the provision of farmers with resistant varieties would be more sustainable."]
[2009,"May","CHINA - improved rapeseed varieties: Scientist are reported to have developed - via conventional breeding techniques - new rapeseed varieties featuring an oil content of 55-60 percent, which is 15 percent more than in the varieties currently used in the country. Among domestically grown oilcrops, rapeseed is the leading source of vegetable oil in the country."]
[2009,"May","ARGENTINA - incentive for using domestic soybeans: With a view to privilege the use of domestically grown soybeans, the government has removed the export tax exemption applied to soyoil produced from imported soybeans. Furthermore, the tax break on soybean imports introduced in 2006 has been discontinued, making imports unprofitable. According to unofficial sources, farmers are currently stockpiling substantial amounts of old crop soybeans and the above trade measure also aims at stimulating farmers to release their stocks."]
[2009,"May","UNITED STATES and EUROPEAN UNION - biodiesel footprint: In the USA, soybean-based biodiesel has been officially estimated to reduce GHG emissions by 22 percent over conventional diesel. This compares to a minimum 50 percent requirement for biodiesel to qualify towards the annual consumption targets. Other feedstock with lower footprint, for example animal fats or waste grease, might be required to meet the mandatory biodiesel target set for 2012. In the EU, the default values for GHG emission savings have been set at 31 percent for soy-diesel, 38 percent for rapeseed-diesel and 19 percent for palm oil-diesel, which compares to a minimum savings requirement of 35 percent (from 2013 onward). Biodiesel producers may claim greater GHG emission savings, but the onus of proof will be entirely on them."]
[2009,"May","GERMANY, SPAIN - biodiesel capacity: This year, private sources estimate the biodiesel industries of Germany and Spain to run, respectively, at no more than 60 and 10 percent capacity. The low utilization rate is related to reduced public incentives, limited mandatory blending rates and the drop in crude oil prices that has eroded the price attraction of biofuels."]
[2009,"May","CHINA - state soybean reserve: Reportedly, in addition to the 6 million tons of state purchases scheduled since October 2008, state agencies are planning to buy another 1.25 million tons of soybean for temporary reserve. For comparison, total domestic soy output in 2008/09 is estimated at 15.5 mill tons. State purchases are carried out at prices above prevailing market prices and are meant to stabilize domestic oilseed production and prevent further declines in prices as farmers are preparing for the new planting season. The federal government is reported to also plan stockpiling between 3 and 4 mill tons of the 2009 rapeseed output.     "]
[2009,"May","INDONESIA - palm oil export tax: The government has kept the indicative world price at which the export tax on palm oil will be re-introduced at 700 US$ per ton. Accordingly, this month the exports of palm oil will remain tax-free. (The NW Europe import price for palm oil has risen markedly last month, but stopped short of Indonesia’s trigger price.)"]
[2009,"May","EGYPT - subsidized distribution of oil: Reportedly, over the last seven months, the amount of subsidized oil available to consumers through ration cards has been raised from 350 000 tons to 900 000 tons per year."]
[2009,"June","SRI LANKA - palm oil import duty: To assist the domestic coconut industry, the government is considering to raise the special import duty on palm and palmkernel oil above the current level of Rs 60 per 1kg."]
[2009,"June","INDONESIA - taxation of palm oil exports: Considering the recent, steady rise in international palm oil prices, the export tax on palm oil (which, inter alia, aims at protecting domestic supplies of vegetable oil) is likely to be reintroduced in June. The tax had been suspended late last year, when a decline in international prices started weighing on the country’s palm oil exports."]
[2009,"June","INDONESIA - palm oil export price: Reportedly, the government is studying a mechanism for setting a national standard price for palm oil exports - so as not to depend on prices determined in the major European import markets."]
[2009,"June","EUROPEAN UNION - subsidization of private olive oil storage: The significant and prolonged decrease in community olive oil prices is expected to trigger the reintroduction of private storage aid, which aims at sustaining the income of olive oil farmers. Support shall be limited to 110 000 tons of olive oil in total."]
[2009,"June","EUROPEAN UNION - biodiesel duty: The Commission has proposed to extend the countervailing duty on biodiesel imports from the USA (provisionally introduced last March) for five years. The method of calculating the duty could undergo slight modifications."]
[2009,"June","NEW ZEALAND - biodiesel subsidy: To encourage investment into national biodiesel production, from July and for a period of three years, a subsidy will be granted on sales of domestically produced biodiesel that complies with sustainability standards set by the government. B5 blends are widely accepted in the country, but mandatory consumption targets have been withdrawn last December. All imported material needs to meet the same standards.      "]
[2009,"June","CANADA - approval of high oleic GM soybean: Low in trans fatty acids and not requiring hydrogenation, the oil from the new variety offers improved nutritional qualities. The bean has been cleared for cultivation, food and feed use in the country."]
[2009,"June","RUSSIAN FEDERATION - import tax on selected vegetable oils: An import tax of 10% is expected to be introduced soon for palm oil and coconut oil for a period of nine months. The intention is to temporarily shield domestic dairy products from the competition of lower priced substitutes."]
[2009,"June","UNITED STATES - renewable fuel standard: An expanded renewable fuel standard (RFS-2) issued in draft form by the EPA has attracted criticism from the industry. In assessing the life cycle GHG impact of biofuels, the standard considers direct and indirect emissions, including those related to indirect land use changes. The justification and methodology for attributing emissions from land conversion to soybean-based diesel as well as the practicability of the required feedstock certification are being questioned. Achieving the country’s biomass-based diesel targets under the proposed RFS-2 would be challenging if soybean-based diesel was excluded.             "]
[2009,"June","Sales of certified sustainable palm oil: Palm oil that has been produced meeting environmental and social safeguards is available on the market since November 2008. However, sales of certified palm oil seem to be slow in taking off. According to tentative figures compiled by the WWF, so far, only about 1 percent of the sustainable palm oil available on the market has been bought."]
[2009,"June","Sequencing of oil palm genome: According to official sources in Malaysia, researchers have finally managed to fully sequence the oil palm genome. Eventually, this breakthrough will allow enhancing the productivity and sustainability of oil palm, a plant where yield levels have not significantly improved over the last decades."]
[2009,"June","CHINA - soybean state reserves: The government is planning to procure an additional 1 million tons of soybeans from Heilongjiang province for temporary storage, in a bid to stabilize the domestic market and protect farmers’ interests. Reportedly, since mid 2008, government purchases have accumulated to a total of 7.25 million tons.                "]
[2009,"June","EUROPEAN UNION - biofuel target: An official report states that the EU is unlikely to reach the indicative 2010 target of 5.75% of transport fuel coming from renewable energy sources. A community-wide share of 4% is expected instead. The respective share in the year 2005 was 1%. Biodiesel accounts for roughly three quarters of renewable fuel use; bioethanol contributes 15%. The EU-Commission estimates that, by 2020, some 20-30 % of the utilization target is going to be met by second generation biofuels."]
[2009,"July","INDONESIA - palm oil export tax: Suspended since December of last year, in June the export tax was re-introduced at a level of 3 percent, in line with the government’s policy to levy taxes when the world price exceeds a given level. While palm oil shipments are likely to decrease, the value of exports is anticipated to remain stable as are domestic cooking oil prices.  "]
[2009,"July","UNITED STATES - export incentives: After remaining unutilized for five years, subsidies for butterfat exports will be reactivated for 2008/09 under the Dairy Export Incentive Program (DEIP). The payments are meant to help exporters meet prevailing world prices and to remain competitive vis-à-vis subsidized products from other countries. Allegedly, U.S. producers have seen their international market shares erode, in part due to the recent reintroduction of export subsidies by the European Union."]
[2009,"July","Round Table for Responsible Soy (RTRS): Following in the footsteps of the Roundtable for Sustainable Palm Oil (RSPO), the international multi-stakeholder initiative on soy has approved principles and criteria for responsible soybean production, thereby establishing the basis for the formulation of global standards on environmentally sustainable and socially responsible soy production, trade and processing. The next steps will be field-testing the criteria and, eventually, developing proper certification standards to be used by traders.  "]
[2009,"July","Certified palm oil: Neste Oil, a Finnish biodiesel producer, committed to shift to certified palm oil as sole feedstock (i.e. palm oil produced according to RSPO’s criteria for environmentally and socially sustainable production). The company, which introduced a system of full traceability of the palm oil it uses, expects to use 50 000 tons of certified palm oil in 2009 and considerably higher amounts in the coming years. Similarly, snack food producer Mars committed to use exclusively RSPO certified palm oil originating from sustainable sources by 2015. On the other hand, to date global sales of certified palm oil seem to have been minimal. Apparently, buyers are concerned about costs and uncertainty of supply. Reportedly, certification can add a premium of US$ 50 a tonne to palm oil in the wholesale market.   "]
[2009,"July","BRAZIL - agricultural support 2009/10:  The recently announced package of support measures addresses the increasing economic difficulties faced by the sector. In particular, the programme raises the supply of credit at controlled interest rates and lifts the financing limits per beneficiary. Interest rates will remain unchanged, and the volume of subsidized production loans will increase by 21 percent over last season. Furthermore, agricultural insurance programmes will be enhanced, cooperatives will be strengthened and guaranteed minimum prices will increase - especially for soybeans (plus 10%). Overall, special emphasis seems to be given to commercial and export oriented agriculture (as opposed to family agriculture). Private sources expect the package to contribute to a recovery in production in the coming crop season. "]
[2009,"July","CHINA - support to crushers: Reportedly, to support farm sales of rapeseed at officially set prices, the government plans to offer subsidies to crushers (Yuan 200 per ton crushed). This measure would help farmers to sell their rapeseed crop, which is expected to hit a new record this year. Similar measures seem to be under consideration for soybeans, with a view to stimulate domestic soybean production and to stem the on-going surge in soybean importation."]
[2009,"July","GERMANY - biofuel target: Despite opposition expressed by the German parliament’s upper house, government plans to cut the 2009 biofuel blending target - from the current level of 6.25% to 5.25% - and to further raise taxes levied on biofuels have finally been confirmed. The higher blending ratio will be introduced only in 2010 and then remain at that level in subsequent years.  "]
[2009,"July","Biofuel blends as jet fuel: A major commercial carrier in the USA reported successful completion of a demonstration flight using a biofuel blend comprising jatropha oil. Reportedly, the blend performed as well as traditional jet fuel. Among the key results were a higher fuel efficiency of the blend and substantially lower greenhouse gas emissions (over the entire life cycle) compared to conventional fuel. No modifications were required to the aircraft or its engines. The airline hopes to see those fuels produced in commercial quantities in the near future."]
[2009,"July","CHINA  - soybean export duty: According to a local news agency the current 3 percent duty levied on exports of soybean (as well as other grains and industrial products) will be abolished from July with a view to promote exports.  "]
[2009,"July","BRAZIL - GM soybean submission: Monsanto’s submission of insect-protected Roundup Ready2Yield soybean for regulatory approval has been completed in Brazil. The US developed variety is heavily targeted at foreign markets and its approval in producing and importing countries will be key."]
[2009,"July","CANADA - GM soybean approved: A variety high in oleic acid, and thus with improved nutritional qualities, has been approved for cultivation, food use and as a feed in Canada. Due to its specific fatty acid profile the oil does not require hydrogenation, resulting in food free of trans fats. Developed in Canada, the new variety is being submitted for regulatory approval in major soybean producing/importing countries including the USA."]
[2009,"July","UKRAINE - biofuel incentives: Through a new law granting significant tax benefits to biofuel producers the government aims at stimulating domestic production and consumption of biofuels, notably rapeseed-based biodiesel. To date, only non-mandatory targets were in place, biofuel production has been negligible, and rapeseed has been primarily exported to the EU as feedstock for biodiesel. Once effectively implemented, the new law could make domestic biodiesel production (for local use and export) more attractive, potentially limiting rapeseed shipments and stimulating exportation of finished biodiesel, in particular to the EU"]
[2009,"September","EUROPEAN UNION - biodiesel import duty: EU member states have agreed to extend the   countervailing duty on biodiesel imported from the USA, which was introduced in March 2009, for the next five years. The measure aims at shielding biodiesel production in the Community from unfair competition by US exporters. The range of the permanent duties has been narrowed compared to the one in place so far. Reportedly, WTO anti-dumping guidelines have been adhered to, thus reducing the likelihood of a legal dispute between the two blocks."]
[2009,"September","EUROPEAN UNION, UNITED STATES - market support for butter: In an effort to help their dairy sectors coping with the prolonged and general depression in prices, the EU and the USA are prepared to extend their recently re-introduced domestic support measures, comprising aid to private storage, public intervention buying and the granting of export refunds."]
[2009,"September","UNITED STATES - GM soybean: Official sources reported that in US agriculture the rate of adoption of GM soybean varieties has reached an estimated 91 percent (compared to 54 percent in 2000 and 7 percent in 1996). Soybeans represent the most widely and rapidly adopted GM crop; all modification concerns herbicide tolerance. The marked expansion has taken place in spite of uncertainty about consumer acceptance and economic and environmental impacts of GM products."]
[2009,"September","INDIA - biodiesel import duty: The government is planning to reduce the basic customs duty on biodiesel from 7.5 to 2.5 percent. Due to several factors the country is facing difficulties in meeting its biofuel consumption targets from domestic sources."]
[2009,"September","Certified sustainable palm oil: Suppliers of palm oil certified as sustainably produced (in line with RSPO criteria) report lower than expected demand from importers. One explanation is that the global economic slowdown has curtailed demand from price-conscious buyers: reportedly, crude certified palm oil sells at a premium of about 50 USD per tonne (uncertified palm oil was traded 600-700 USD per tonne in recent weeks)."]
[2009,"September","INDIA - commodity exchanges taxation: With a view to stimulate trade in commodities, the government decided to abolish transaction taxes levied on commodity futures trading and on commodity options."]
[2009,"September","INDIA - vegetable oil import duties: After reducing import tariffs markedly during fiscal year 2008/09, the government prefers not to raise them again during 2009/10. As low tariffs remain in place, domestic oilseed and oil prices tend to remain lower, which leads to benefits for consumers but discourages domestic production."]
[2009,"September","CANADA / EUROPEAN UNION - dispute over trade in GM crops: The recent settlement of a long lasting dispute between the two countries is expected to favour in particular future sales of Canadian GM rapeseed into the EU."]
[2009,"September","CHINA - SENEGAL land lease deal: Reportedly, China is set to lease land from farmer cooperatives in Senegal to grow groundnuts. One third of the output is envisaged for export while the rest will be destined for local processing and consumption."]
[2009,"September","INDIA - subsidized vegetable oil sales: The central government is considering to repeat last year’s sales of cooking oil through ration shops should retail prices rise. To this end, state-owned trading companies would be directed to import up to 1 million tonnes of crude palm oil. To make the operation economic, a subsidy of 15 Rupees per kg of oil sold would be made available."]
[2009,"September","BRAZIL - mandatory biodiesel use: Effective July 2009, the mandatory content of biodiesel in diesel is 4 percent; it started at 2 percent in Jan 2008 and became 3 percent in July 2008. A further increase to 5 percent is expected for January 2010 or three years earlier than originally planned. Annual biodiesel consumption in estimated to exceed 1.5 million tons by the end of this year.         "]
[2009,"September","CHINA - public sales of soybeans: First sales of soybeans from state reserves have been reported in August. Sales were done through auctions. Reportedly, public soybean reserves (established for the first time last year in support of domestic soybean production) have climbed to between 5 and 7 million tonnes. More sales are expected as the government will try to free space for new-crop purchases. In addition, to facilitate disposal of state reserves, subsidies may be offered to crushers.           "]
[2009,"September","New options in palm oil futures trading: The Chicago Mercantile Exchange (which includes CBOT) and Bursa Malaysia are planning to jointly list dollar denominated palm oil futures using Malaysia’s Ringgit-based contract as a benchmark. At the same time, efforts to create its own price benchmark are going on in Indonesia, the world’s leading palm oil producing nation:  the Indonesia Commodity and Derivatives Exchange announced the launch of a new palm oil contract later this year, which follows the launch (with state support) of a new physical crude palm oil contract last June by the Jakarta Futures Exchange.   "]
[2009,"September","BRAZIL - soya restrictions to protect rainforest: Leading soybean traders and vegetable oil producers agreed to extend for another year the moratorium on buying soybeans grown on illegally cleared areas in the Amazon rain forest. The ban that went into effect three years ago has been extended to July 2010."]
[2009,"September","EUROPEAN UNION - GMO traces halt soy imports from United States: EU importers decided to temporarily suspend soybean imports from the USA after traces of unauthorized GM maize (i.e. varieties not cleared for use in the EU) were found in US soymeal shipments. The EU applies a zero tolerance policy for imports of unauthorized GM material. The USA is a primary source of supply for the EU’s highly import dependant feed/livestock industry.  "]
[2009,"September","BRAZIL - biodiesel exportation: The government would like to encourage regular exportation of soy-based biodiesel, notably to the USA and EU. Reportedly, sustainability studies have been carried out proving that in the country biofuel is produced sustainably and in line with EU norms."]
[2009,"September","PERU - biodiesel imports: The country is reported to have started anti-dumping investigations on biodiesel imports from the USA, which could lead to the imposition of countervailing duties."]
[2009,"September","INDIA - ASEAN free trade agreement: The newly signed agreement will include a ceiling of 37.5 percent on India’s import tariff for crude palm oil. In recent years, the tariff rate ranged between 80 and zero percent. The ceiling could benefit Indonesia’s palm oil exports to India.           "]
[2009,"September","EUROPEAN UNION - INDONESIA efforts to encourage sustainable palm oil: Reportedly, the EU could offer incentives to Indonesian producers that adopt sustainable production methods. Supposedly, investment aid, tax exemption or refunds would be considered for companies that succeed in reducing GHG emissions along the production cycle."]
[2009,"September","UNITED STATES - export credit programme: Funding for export credit guarantees has been raised beyond original allocations for selected countries. The measure aims at facilitating trade flows during the current period of slow global economic growth and reduced availability of private credit."]
[2009,"September","EUROPEAN UNION - special market promotion programmes: EU co-financing for 1-3 year market promotion programmes amounting to a total value of Euro 62.1 million has been approved. The commodities covered under the programmes include olive oil.                          "]
[2009,"September","AFRICA - asian rust resistant soybean: A variety resistant to the fungus has been developed within the region and should be available to farmers in time for the 2010 crop, thus enabling farmers to cultivate soybeans without applying costly fungicides. Cultivation in key producing countries, including Nigeria, Uganda and South Africa, should benefit greatly."]
[2009,"September","CHINA - crushing capacity: The country’s soybean processing capacity is expected to expand further as both, state-owned and leading private edible oil producers are reported to be investing into new, large processing plants.  "]
[2009,"September","Progress in sustainable oil palm: According to a study issued by CIFOR (an international research institute belonging to the CGIAR network), progress in the application of sustainability standards such as those developed by RSPO remains limited. Inter alia, the report points to the need for legal and political reforms at national level to achieve progress.     "]
[2009,"September","Food processors reduce trans fat presence: Unilever-USA intends to eliminate all artificial trans fats (i.e. those stemming from the partial hydrogenation of oils) from its margarine brands by early 2010. The food company accounts for half the margarine spreads sold in the country. Concurrently, Cargill informed that it is reorganizing and downscaling its production of hydrogenated oil as the company needs to adjust to a significant reduction in demand."]
[2009,"September","INDIA - changing stance on GMOs: Reportedly, the government is planning to support the introduction of GM food crops in the country in the coming years with a view to raise crop productivity and thereby contribute to reducing malnutrition and hunger. To date the only GM crop allowed in the country is BT cotton.            "]
[2009,"September","INDONESIA - palm oil export tax: Following the decrease in the international price for crude palm oil, the country’s variable exports tax has been reduced to zero percent in July and is set to remain suspended also in September."]
[2009,"October","Biodiesel mandatory use: Several countries reported about their plans regarding biodiesel utilization mandates: Coming November, in CANADA, Manitoba will be the first province to introduce a mandatory blend (B2). In URUGUAY, the introduction of B2 was postponed from January to October 2009 due to delays in setting up the fuel distribution system. BRAZIL confirmed its plan to move from B4 to B5 in July 2010, i.e. three years ahead of the originally envisaged date; the higher blending level is estimated to push annual biodiesel demand to 2.2 mill tons. In ARGENTINA, mandatory biodiesel use is confirmed to start in January 2010 at the B5 level, implying an annual biodiesel requirement of about 700 thousand tons. The government of ISRAEL has put programmes for the gradual introduction (over the 2009-2011 period) of mandatory blending (B5) on hold along with the planned tax breaks."]
[2009,"October","GM flaxseed: GM flaxseed that is not authorized for food or feed use in the EU has been detected in Canadian shipments to EU member states. Actually, in Canada, which is the EU’s main supplier of flaxseed, no GM variety of flaxseed is presently registered for commercial production. The country decided to suspend all exports of flaxseed to the EU, while concerned authorities have launched comprehensive investigations with assistance from the industry and in close collaboration with EU counterparts."]
[2009,"October","EUROPEAN UNION - soybean imports: Traces of unauthorized GM material in soybean shipments originating from the USA led to the rejection of cargoes at EU ports. Consequently, importers are reported to have voluntarily suspended purchases from the USA, a major source of supply for the EU’s heavily import dependent feed industry. Reportedly, the increased uncertainty about the European feed industry’s future supply with soybean meal is causing concern among EU Commission officials as to the viability of the bloc’s current zero tolerance approach on unauthorized GM material. Pressure for a revision of this policy and for the expeditious approval of new GM varieties seems to be rising."]
[2009,"October","INDIA - GM crops: First steps towards the cultivation of GM crops have been reported with the approval in principle of, inter alia, herbicide resistant soybean varieties by the Ministry of Agriculture. However, approval from the Ministry of Science and Technology and the Ministry of Environment is still outstanding."]
[2009,"October","Biodiesel compatible engines: Reportedly, Ford has announced the development of a new diesel engine for a pickup model that will be fully compatible with biodiesel up to blending ratios of 20 percent."]
[2009,"October","CHINA  - support to crushers: In an effort to raise sales from state soybean reserves, reportedly the government is considering to offer a subsidy (amounting to USD 30 per ton) to soybean crushers."]
[2009,"October","INDIA - biodiesel consumption: Reportedly, Indian Railways, a major diesel consumer (that also runs 1800 state busses), decided to get involved in vegetable oil-based biodiesel production to meet its future requirements."]
[2009,"October","UNITED STATES - state laws on biofuel use: Reportedly, the implementation of biofuel legislation in individual states is awaiting direction from the federal Environmental Protection Agency as to which type of biofuels will meet anti-carbon pollution standards.      "]
[2009,"October","2nd generation’ GM crops: According to a survey carried out in the EU, consumer acceptance of 2nd-generation GM crops featuring output traits that provide benefits such as improved nutritional quality is better than in the case of 1st-generation GM crops that only provide producer-related benefits."]
[2009,"October","Improved soybean varieties in SE Asia: Reportedly, countries belonging to the Greater Mekong Delta Sub-region (Cambodia, China, Laos, Myanmar, Thailand and Vietnam) see good opportunities to develop suitable, high-performance soybean varieties through conventional breeding techniques as opposed to employing genetic modification."]
[2009,"October","Food industry - use of vegetable fats:  Reacting to feedback from consumers, Cadbury New Zealand is reported to have announced that it will stop using palm oil in the production of its dairy milk brand chocolate and revert to using only cocoa butter."]
[2009,"October","High lauric acid rapeseed: The development of a canola variety with 60 percent lauric acid content (via genetic modification) is reported from Canada. Potentially, the new variety will compete with coconut and palm kernel, the key sources of lauric oil traditionally used in the global market."]
[2009,"December","Oil palm and rapeseed genome: Important progress in sequencing the genome of the two crops has been reported. The scientific advances are expected to accelerate the development of crop varieties with higher yield potential and better resistance to diseases and environmental stress."]
[2009,"December","Supply of sustainable palm oil: Estimates based on current RSPO (Roundtable on Sustainable Palm Oil) membership suggest that the amount of palm oil certified as ‘sustainably produced’ is set to grow significantly in the next years. Reportedly, in May 2009, 0.5 million tons of certified produce were available; but this figure could rise to 4.5 million tons by end-year, and has been estimated at 9.3 million tons for 2015. These buoyant estimates assume that all RSPO member companies will progressively certify their entire output. Absorbing such amounts would require an expansion in global demand supported by the use of certified palm oil in power plants and as biodiesel feedstock.    "]
[2009,"December","Use of sustainable palm oil: Retailer and private label brand Sainsbury’s in UK has pledged to use, by 2014, exclusively palm oil certified as sustainable, or CSPO; reportedly, the decision was taken after the company observed sales increases following the introduction of CSPO in certain processed foods. Likewise, Nestle committed to use only CSPO by 2015 (when sufficient quantities are expected to be available), and a similar pledge was also made by Marks & Spencer. The gradual change in buying policies - by which the industry is responding to new consumer concerns - is made possible by increasing supplies of CSPO, the possibility to trade certificates and the related decrease in the CSPO price premium - from, reportedly, USD 40 per ton last year to USD 10-15 today. Some market participants feel that, as supplies of CSPO continue rising, the price for certified and conventional product will eventually converge.      "]
[2009,"December","Monitoring of sustainable palm oil use: Hoping to encourage the use and accelerate global purchases of available sustainable palm oil, WWF (a RSPO founding member) has announced the creation of a ‘Palm Oil Buyers Scorecard’ - a system to publicly grade leading global retailers, traders and manufacturers of palm oil and palm-based products based on their commitment to purchase, use and promote sustainable palm oil. Preliminary results seem to suggest that today only few buyers in Europe are using CSPO, despite its increased availability and previous commitment by companies to purchase it."]
[2009,"December","Palm oil environmental footprint: Malaysia - a potential exporter of palm oil-based biofuel to the European Union - decided to conduct in-depth work on the calculation of the oil’s impact on the environment. The decision was triggered by forthcoming requirements in the EU, by which, from 2010, biofuels should reduce GHG emissions by at least 35% compared to fossil fuels. The default value for palm oil current assumed by the EU is 19%. However, biofuel suppliers can claim bigger saving rates by providing adequate proof. Currently available studies put GHG saving rates in palm oil in a wide range of 19 to 71%, reflecting rather diverse and complex methods of calculation. Interestingly, up to half of total GHG emissions in palm oil appear to stem from the release of methane gas during the processing stage. Consequently, in Malaysia, efforts are under way to equip palm oil mills with methane capturing technology. Reportedly, the issue of GHG emissions is also under debate at RSPO, with members split over the proposed incorporation of emission targets into the standards for sustainable production. Experts noted that the market is yet to provide clear signals on how it will value efforts by producers to control emissions and feet that, for producers to make commitments, global compensation mechanisms will need to be put in place."]
[2009,"December","Edible cottonseed: Researchers in the United States reported the development of genetically modified cottonseed that is both free of gossypol (and hence fit for human consumption) and resistant to insects and diseases. The new variety has the potential to add protein to the diet of poor people and raise the income of cotton farmers. Further tests and approvals by regulatory bodies are required before the seed can be made commercially available."]
[2009,"December","PHILIPPINES - trans fat regulation: Earlier this year, legislation regulating the commercialization of trans fat was passed. Accordingly, the sale of fats and oils containing significant amounts of trans fats is not allowed; food manufacturers are required to indicate trans fat content on product labels; and trans fat thresholds apply to products that claim to be “free of trans fatty acids”. The regulations are expected to contribute to higher consumption of domestic coconut oil at the expense of imported hydrogenated oils.    "]
[2009,"December","INDONESIA - palm oil export tax: The export tax on crude palm oil will remain suspended in December, i.e. for the fifth consecutive month. The base export price has been adjusted upward but remains below the level that would trigger a reintroduction of the export tax."]
[2009,"December","MALAYSIA - smallholder oil palm support: Reportedly, the government has allocated funds to assist smallholders in adopting sustainable production practices and in adhering to the RSPO certification process. Furthermore, during 2009-10, financial incentives will be provide to smallholders to allow them to participate in replanting programmes aimed at raising yields - from 20 tons of FFB per ha today to 35 tons in 2020."]
[2009,"December","MALAYSIA - mandatory biodiesel use: Compulsory 5% blending was scheduled to come into effect country-wide in January 2010, but that rate may now be reduced to 3%. In Malaysia, producers of biodiesel are allowed to buy their feedstock, palm oil, at a fixed, subsidized price, with the oil palm industry contributing to the funding of this scheme. As the recent strengthening in the market value of palm oil implies a higher subsidy, and considering the very slow uptake of biodiesel consumption so far, the government and the oil palm industry plan to contain the outlays for biodiesel subsidization by reducing the compulsory blending rate. Furthermore, to spur domestic biodiesel demand, the government has announced that it will drop the 10% tax currently applying to biodiesel sales."]
[2009,"December","CHINA - soybean production and processing: The government continues to be concerned about the country’s strong dependence on imported soybeans and the uncontrolled expansion in the crushing industry. Reportedly, measures under consideration by the government include a subsidy to soybean farmers, the amount of which would be inversely related to the market value of the crop. Also measures to encourage plantings and processing of groundnut, rape, sunflower and cotton seed will continue, and no new soybean crushing projects will be approved and structural improvements in the processing sector will be encouraged."]
[2009,"December","CHINA - oilseed procurement and public stocks: Reportedly the government decided to release 2 million tons of soybeans (from the 2008 harvest) from state reserves, offering crushers a subsidy of Yuan 210 per ton. Furthermore, public purchases and stockpiling of soybeans is set to resume in December and will last until April 2010. The price paid to farmers should be Yuan 3740 per ton, or about 1% above last season’s procurement price, while the crushing subsidy could be reduced to Yuan 160 per ton. In line with its effort to support farmers and stabilize domestic output, the government also announced that it will buy 1 million tons of rapeseed (in addition to the 5 million tons planned last June) at a price of Yuan 3700 per ton. Reportedly, by end September, 3.8 million tons of rapeseed had been procured."]
[2009,"December","CHINA  - rapeseed imports: As of November 15th, rapeseed shipments entering the country are required to be certified free of blackleg disease for phytosanitary reasons - a regulation that hurts in particular exports from Canada (and possibly Australia), where the disease is no longer a major threat, but continuous to be present. The three countries are involved in negotiations about a possible delay in the implementation of the new regulation and about alternative risk mitigation measures. Meanwhile, rapeseed crushers in China are expected to turn to domestic supplies, including the ample government stocks accumulated during the past season."]
[2009,"December","INDIA - biodiesel exportation: An international biofuel producing company has reported a first shipment of biodiesel from India to a customer in Europe."]
[2009,"December","INDIA - vegetable oil exports: The temporary ban on bulk shipments of vegetable oils introduced in early 2008 (to secure domestic supplies and contain price rises) has been extended until October 2010."]
[2009,"December","INDIA - commodity exchange: Reportedly, the Indian Commodity Exchange has become operational end November and commodities traded include soy oil.                                 "]
[2009,"December","BRAZIL - soybean moratorium: The moratorium on buying soybeans planted on land illegally cleared in the Amazon region has been extended for a 4th year. Meanwhile, NGOs have launched discussions on the environmental effects of converting vast tracts of Savannah into arable land, in particular for cultivating soybeans."]
[2009,"December","BRAZIL - currency policies: Reportedly, the government is determined to tax foreign investments in an effort to prevent further appreciation of the national currency vis-à-vis the US dollar. The strength in the Real tends to raise input costs for farmers and erodes export earnings - for instance from soybean sales."]
[2009,"December","BRAZIL - mandatory biodiesel use: In recent years, the government accelerated the introduction of mandatory blending rates (inter alia to make better use of the installed production capacity), and compulsory 5% blending is set to come into force nation-wide in July 2010. Now the government was reported to consider gradually moving to 20% blends in big cities by 2015, which is estimated to raise annual biodiesel consumption to 5.5 million tons."]
[2009,"December","COLOMBIA - biodiesel mandatory use: biodiesel blending of 10% will become compulsory in January 2010 - up from 5% in 2009. The new target is estimated to translate into an annual requirement of 500 000 tons of biodiesel - entirely based on domestic palm oil, production of which is set at 0.8-1 million tons in 2010."]
[2009,"December","ASEAN free trade agreement: The agreement (referred to as AFTA) is set to take effect next January, implying the introduction of common preferential tariffs ranging between 5 and zero percent for all products, including those previously deferred under sensitive lists. The six founding members of ASEAN agreed to immediately reduce their tariffs on key agricultural products - including soybeans as well as soy, palm and coconut oil - to zero. This measure is expected to affect internal trade patterns, with the most competitive producers likely to gain market shares."]
[2009,"December","AFRICA - new investments in oilseed production: Several countries in the region are reporting renewed interest in oilseeds, in particular as biodiesel feedstock. Government backed, large scale commercial production of biodiesel is planned in RWANDA, where a private consortium is ready to develop 10 000 ha of jatropha, aiming at the production of 16 million litres of biodiesel annually. Other biodiesel feedstock under consideration include, high-altitude oil palm, moringa, castor and soy. KENIA has introduced a plan for developing biodiesel from jatropha and other locally grown trees and is eyeing a biodiesel blending ratio with fossil diesel of 5%. Comparable plans have also been launched in ETHIOPIA, focusing on castor, jatropha and oil palm cultivation on arid land not used for food crops. In LIBERIA, the government is securing major investments in oil palm by private companies from Malaysia and Indonesia, expecting significant improvements in livelihoods and social welfare in poor regions, industrial development and new export earning opportunities. Meanwhile, in UGANDA, NGOs have criticized large scale investments in oil palm for giving insufficient regard to environmental regulations and social concerns. Exposed to similar criticism and concerned about national food security, in TANZANIA, the government decided to closely monitor (and partly suspend) widespread land acquisition and investment by companies involved in biofuel production (from jatropha and other feedstock). And finally, international research is encouraging farmers in Sub-Saharan Africa to cultivate soybeans to improve both, their income and local diets. Soybean is promoted as a versatile crop that can grow well in the region and is suited for small-scale farming and processing, and new uses and marketing systems are expected to reduce the farmer’s dependence on the meal and oil industry."]
[2009,"December","TURKEY - GMO import rules: A new law regulating the importation of GMO material that has come into force end October started to negatively affect the country’s imports of soybeans and soy meal. Foreign rape and sunflower seed, where non-GMO material is readily available, are expected to partly fill the gap.         "]
[2009,"December","UNITED STATES - groundnut policy reform: The government reported that landmark policy changes enacted in the early 2000s transformed the national groundnut sector by eliminating longstanding supply controls and restrictions. Guided by market forces, the industry is reported to have adjusted quickly, resulting in fewer and larger farms in the regions best adapted to production. Total area of and prices for groundnut have fallen, but more efficient and competitive production supported renewed demand growth, especially in export markets."]
[2009,"December","UNITED STATES - biodiesel tax credit: The tax credit of USD 1 per gallon introduced in 2004 is set to expire at the end of the current year. The tax concession has contributed to making biodiesel an economically viable alternative to conventional diesel. Legislation extending the tax credit by 5 more years - to allow the biodiesel industry to grow further - is reported to be under consideration."]
[2009,"December","UNITED STATES - rapeseed meal imports: After detecting harmful salmonella bacteria in shipments from Canada, the US Food and Drug Administration introduced import alerts on rapeseed meal plants operated by major processors in five Canadian provinces. The alerts allows inspectors to detain shipments at the border. In the United States, zero tolerance applies to salmonella bacteria. Reportedly, the import measure resulted in a reduction in crushing and a redirection of meal exports to other markets in Canada."]
[2009,"December","EUROPEAN UNION - approval of GMO maize: Importation and consumption of four new GMO maize varieties has been officially approved. The decision is expected to lead to a resumption (in December) in soybean and meal imports from the United States. Shipments had come to a halt during September, after small traces of still unapproved GMO maize were detected in some cargoes."]
[2009,"December","EUROPEAN UNION - butter market intervention: Due to continued oversupply and persistently low prices, public buying into intervention has been allowed to continue uninterrupted until February 2010, i.e. the start of next year’s official intervention period (which normally runs from March to August only). The measure aims at stabilizing milk prices for dairy farmers."]
[2009,"December","EUROPEAN UNION - biofuel environmental footprint: EU standards for calculating the footprint of biofuels and their feedstock are expected to be reviewed during 2010, once the EU releases new guidelines for calculating the impact of indirect land use changes (ILUC). In the meantime, a group of NGOs has claimed that the EU’s current renewable fuel targets could increase rather than reduce overall GHG emissions in the transport sector, and, accordingly, recommended to replace current energy-based targets with purely GHG-based targets, including life-cycle impact assessments and ILUC indicators. In addition, also the EU’s recent assessment that biofuel production in the EU can be increased via productivity gains and improved second generation technologies - rather than major expansions in area - has been questioned."]
[2009,"December","EUROPEAN UNION - private sector complaint against US biodiesel export practices: Claiming that US biodiesel producers/exporters are circumventing the EU’s anti-dumping and countervailing duties, the European Biodiesel Board (EEB) announced that it will lodge a new complaint to the EU trade authorities."]
[2009,"December","RUSSIAN FEDERATION - import tax on tropical oils: According to private sources, the 10% temporary tariff - introduced last June to afford protection to the domestic dairy industry - could be lifted in January in an effort to address a domestic shortage in vegetable oil that is expected to arise from reduced domestic crops."]
[2009,"December","SOUTH AFRICAN REPUBLIC - trans fatty acids legislation: The government is developing legislation aimed at reducing certain trans-fats in processed and prepared foods so as to contribute to the reduction of chronic diseases associated with the presence of TFAs in the diet. The proposed law would affect especially the use of  partially hydrogenated vegetable oils, while naturally occurring TFAs in animal fats would be excluded. Comparable legislation is already in place in Denmark, Canada and the United States."]
[2010,"January","INDONESIA - palm oil shipment facilities: Reportedly, official sources announced plans to build three new ports for shipping palm oil to handle rising output in the world’s top producing country. Traders reported that congestions at ports are increasingly hampering exports from the country. The government is also planning to provide incentives to boost the development of the palm oil industry at the downstream level with a view to raise value addition and provide more employment."]
[2010,"January","INDIA - trans fat regulation: The Food Safety and Standards Authority of India was reported to consider introducing a 10% limit on the amount of trans fat contained in partially hydrogenated vegetable oils (notably vanaspati or vegetable ghee). The limit could come into effect in 2010 and would be reduced to 5% during the three subsequent years. The measure is being considered as a means to lower the incidence of cardiovascular diseases."]
[2010,"January","INDONESIA - palm oil export tax: Following the rise in the international price for palm oil beyond 750 USD, the government has announced the reintroduction of the export tax on crude palm oil at 3% in January 2010. The tax had remained suspended since August 2009."]
[2010,"January","MYANMAR - vegetable oil importation: Reportedly, the country’s health ministry has banned the importation of selected brands of vegetable oils of Thai and Malaysian origin on the basis that these contain chemical colour agents that do not conform with the relevant health standards."]
[2010,"January","ARGENTINA - mandatory biodiesel use: A delay in the implementation of the 5% mandatory biodiesel blending into conventional diesel from January to March 2010 has been reported, Apparently, negotiations between the government and biodiesel producers regarding the required adjustments in infrastructure could not be completed in time."]
[2010,"January","REPUBLIC OF KOREA - biodiesel support: Reportedly, the government has decided to raise mandatory biodiesel blending to 2% in 2010 compared to the 2009 level of 1.5%. In addition, also the tax due on diesel fuel will be waived. Korea started blending with biodiesel in 2006 as the first country in Asia."]
[2010,"January","INDIA - coconut support: A new insurance scheme for coconut farmers has been launched in Kerala, the country’s main coconut growing state. Farmers are expected to pay 25% of the insurance premium, while the remainder will be borne by the federal and state government."]
[2010,"January","EUROPEAN UNION - biodiesel tax breaks: NORWAY decided to significantly reduce the tax break enjoyed by biodiesel; the measures is taking effect in January 2010. Similarly, ITALY plans to drastically cut the biodiesel quota that enjoys reduced excise duty. By contrast, in GERMANY, the government  decided to postpone the gradual rise in taxes levied on biofuels that was to be implemented from 2010 onward."]
[2010,"January","UNITED STATES - biodiesel tax credit: The US House of Representatives has approved the extension of the USD 1 per gallon tax incentive - which was due to expire on 31 December 2009 - by one year, i.e. through the end of 2010. Now final approval is required by the Senate. According to industry sources, biodiesel production could become uneconomic in the absence of the tax credit."]
[2010,"January","Sustainable palm oil: Reportedly, at a recent RSPO meeting, WWF reported that despite the availability of safe, environmentally-friendly palm oil options, Western companies did not appear to meet commitments to only buy sustainably produced palm oil. The organization found that, while RSPO members were increasingly adopting improved production practices, the major issue of GHG emissions involved in land use changes was not adequately addressed and that  related measures continued to be of a voluntary nature only.Meanwhile, global consumer goods company Unilever decided to suspend purchases of palm oil from a particular supplier in Indonesia until the same could prove that its plantations were not damaging high conservation value forests nor expanding onto peatland areas. In the meantime, official sources in INDONESIA confirmed the national target to expand total area under oil palm to 18 mill ha (from today’s level of 9.7 mill ha) -  while fully adhering to social, economic and environmental sustainability standards. Allegedly, the expansion was needed to allow the country meeting its commitments regarding overall reduction in GHG emissions. In COLOMBIA, the government seems determined to promote environmental and social certification in palm oil-based biofuel production. It claims that current oil palm production and the sector’s planned expansion does not threaten local rainforests nor displace food crop production thanks to the availability of vast tracts of underutilized agricultural land."]
[2010,"January","CHINA - soybean import licensing: Reportedly, the government has announced that all foreign soybeans purchases will become subject to an automatic import license system. The measure would facilitate monitoring the flow of soybean imports into the country. Among traders, concern has been voiced that the new licensing system could delay shipment operations."]
[2010,"February","THAILAND - exports of palm oil under AFTA: Thai sources estimate that as a result of the common preferential tariffs recently introduced under the ASEAN Free Trade Agreement (AFTA), the country will loose 2.6% or US$ 46 million of its export business to Malaysia."]
[2010,"February","ASEAN - CHINA free trade area (ACFTA): The trade agreement has come into force at the same time as trade got liberalized within the ASEAN block itself. Under the accord, China and the six founding ASEAN countries (Brunei, Indonesia, Malaysia, the Philippines, Singapore, and Thailand) will remove tariffs on 90 percent of imported goods. The other four ASEAN members (Cambodia, Laos, Myanmar, Vietnam) will follow suit in 2015. As to oilseeds, oils and meals, ASEAN exports of palm oil (primarily from Malaysia and Indonesia) are expected to benefit from improved access to the Chinese market. Palm oil, which belongs to the list of sensitive products, will see its import tariff reduced from 30 percent to 9 percent, and further reductions are scheduled for the coming years."]
[2010,"February","CHINA - rapeseed state reserves: The country’s rapeseed stockpiling programme continues to be active: reportedly, state agency Sinograin bought 4.05 mill tons by last December and the purchasing programme has been extended to February 2010. The operations, which include a fix price offered to farmers, tend to stimulate traders’ interest for cheaper rapeseed imported from abroad."]
[2010,"February","CHINA - soybean crushing capacity: With new crushing facilities expected to come on-stream this year, the country’s annual soy processing capacity could approach 100 million tons. However, the current capacity utilization rate is estimated at less than 50%. Reportedly, the government could reject new applications for processing plants or expansions with a view to curb over-capacity."]
[2010,"February","INDIA - soybean futures trading: Reportedly, soybean processors are calling for curbs on futures trading in soybeans. They are concerned about the recent hike in domestic soybean prices - which affect the country’s soymeal export prospects - and claim that futures operations have contributed to the rise in prices. The concerned regulatory bodies have rejected these requests, saying there was no evidence for the suggested effect on prices."]
[2010,"February","INDONESIA - infrastructure development:  Delegations of government and business leaders from Indonesia and Japan started discussing a project under which Indonesia - assisted by Japanese private companies - will accelerate infrastructure development in selected regions to assist industrial growth. The initiative is expected to benefit the palm oil industry and allow further growth in the sector."]
[2010,"February","KENYA - domestic market competition: The country’s Commission on Monopolies and Prices reportedly has ordered in-depth investigations into activities of edible oil producers and distributors for possible cartel activities and collusion to control domestic prices taking advantage of market dominance."]
[2010,"February","LIBERIA - oil palm investment: A major Indonesian oil palm operator is reported to consider investing in Liberia’s oil palm industry. Negotiations with the government on a concession agreement are reported to be on-going. The project will have to conform fully to the country’s environmental master plan and standards. The investment plan envisages the development of up to 240 000 ha (including 40 000 ha run by out growers), and would produce over one million tons of palm oil per year."]
[2010,"February","UGANDA - oil palm development: Reportedly, the government has released new funds to expand oil palm growing in the country via public-private partnerships. Also, a palm oil pricing committee has been set up to ensure adequate returns for farmers. Public funds will be made available for purchasing land, and district leaders have been urged to allocate more land for oil palm cultivation. Meanwhile, according to private sources, under an on-going public-private project, the government has been asked to make available for oil palm growing grassland portions that belong to a forest reserve."]
[2010,"February","AUSTRALIA - GM rapeseed: Reportedly, the government has announced that, from this year, GM rapeseed may be grown in the country. Once GM varieties enter the market, trade with the EU - where importation of GM material is subject to specific regulations - could be affected."]
[2010,"February","CANADA - effects of biofuel production: Reportedly, the government has commissioned a study on possibly harmful environmental effects associated with the production of biofuels. Official sources pointed out that the commissioning of the study does neither presuppose that there are any such effects nor alter the government’s commitment to renewable fuels."]
[2010,"February","CANADA - support to rapeseed sector:  The government and the Canola Council of Canada will together invest in the development of a comprehensive market strategy for the rapeseed sector. The initiative aims at improving access to international markets. Measures will include the examination of non-tariff trade barriers and the promotion of best practices so as to meet the standards of importing countries."]
[2010,"February","GATES FOUNDATION: A reputed biotech expert with extensive experience in the development of genetically modified seeds has been appointed as head of the Foundation’s Agricultural Development Program. In recent years, the foundation focused much of its agriculture efforts on helping small farmers improve production and commercialization of their crops. In addition, the foundation started to invest in higher tech solutions for combating hunger and disease.  "]
[2010,"February","Jatropha curcas genome: Although considered a promising biofuel crop for developing countries, jatropha’s off-take as a commercial crop has so far been hampered by the absence of certified plant material with proven yield potential. Reportedly, to address this problem, a group of science companies in the United States is committed to work on the plant’s genome and on the systematic introduction of promising traits, so as to develop stable, high performance and region-specific cultivars."]
[2010,"February","GM soybean beneficial to consumers: Most GM soybean varieties developed to date were designed to help farmers by making weed and disease control easier. Now Monsanto is ready to launch a new variety that - rich in omega-3 fatty acids - promises to deliver health benefits for consumers. Researchers generally concur that omega-3 fatty acids are helpful in combating cardiovascular diseases and can benefit the brain."]
[2010,"March","UNITED STATES - revised Renewable Fuels Standard: The new programme (referred to as RFS-2) that came into effect last month sets the target for national consumption of biomass-based diesel in 2010 at 0.65 billion gallons, corresponding to 1.1% of total diesel sales, to which the 0.5 billion gallons that were not consumed last year can be added. Reportedly, 20% of the target may be carried into 2011. The mandate will increase gradually in 2011 and 2012, while subsequent targets will be determined later. Furthermore, starting this year, measurement of GHG emissions during fuel and feedstock production, distribution and use will include emission stemming from indirect land use changes. Biomass-based biodiesel must lead to at least 50% reduction in lifecycle GHG emissions compared to petroleum-based diesel. According to the new RFS-2 standards, soy oil and waste oils, fats, and greases all comply with this requirement. Reportedly, the default GHG emission savings of soy oil-based biodiesel has been set at 57%, which, depending on the production method, can even reach 85%. For domestically produced feedstock no additional certification will be required. As to competing palm oil, it may or may not meet the requirements depending on how it is produced; compliance will be determined based on certification provided by the producer. Overall, under RFS-2, demand for soybeans as biodiesel feedstock can be expected to rise in the long run, likely lifting domestic soybean prices (and hence farmer incomes as well as food costs) and reducing the country’s soybean exports compared to the 2006 reference situation."]
[2010,"March","EUROPEAN UNION - agricultural support: The EU’s latest official notification to the WTO - which covers the period up to 2006 - shows a significant increase in total farm support outlays since 2002. Reportedly, total support outlays added up to Euro 90.7 billion in marketing year 2006/07, compared to 75.6 billion in 2002, when the level of support reached a fifteen- year low. The rise is due to a surge in “green box” payments, i.e. subsidies that have no, or only minimal effects on trade or production. This surge is only partly offset by a drop in “amber box” (most trade distorting, production-linked) payments and “blue box” (production limiting) payments. Since 2005, oilseed producers - and arable crop producers in general - benefit primarily from green box payments, notably the ‘single farm payments’ that are decoupled from production and thus exempted from reduction requirements under WTO."]
[2010,"March","INDONESIA - palm oil exports: According to official sources, the country plans to limit exports of crude palm oil at 50% of output by 2015 and 30% by 2020 - in an effort to boost the domestic downstream processing sector, thereby creating employment. To attract the required capital for investment, the government would provide fiscal incentives and encourage banks to lend at reduced interest rates. Currently, well over 50% of palm oil exports are in crude form. Reportedly, the industry expressed concern over these plans, pointing out that such policies could induce importing countries to raise tariffs on refined palm products - also in a bid to encourage refining and downstream processing at the local level."]
[2010,"March","INDONESIA - PAKISTAN, oil palm trade: Indonesia is reported to be negotiating with Pakistan about its import tariff for palm oil. Currently, due to a preferential trade agreement that Pakistan signed with Malaysia in 2007, Indonesian palm oil is subject to a higher tariff than produce coming from Malaysia. Indonesia aims to have its exports charged with the same tariff enjoyed by Malaysia."]
[2010,"March","CHINA - sales from state soybean reserve: Some 200 000 tons will be released from state reserves in a move to free public storage space. During 2008/09 marketing year, total state purchases amounted to 7 million tons. However, according to market sources, the state-set purchase/selling price of 3774 Yuan per ton is both, too low for soybean farmers to sell and too high for soybean processors to buy: rising domestic production costs and competitively priced imports continue to threaten the market for home-grown soybeans."]
[2010,"March","UKRAINE - sunoil export quota: Reportedly, the government is considering to reinstall temporary export quotas for sunflower oil. At their current pace, export activities tend to result in domestic shortages, price rises and idle crushing capacity.  Monthly shipments could be capped at 159 thousand tons, which compares to recent sales of 200 thousand tons. The last time such quotas were in place was in mid 2008."]
[2010,"March","Spread of GM oilseeds: According to ISAAA (the International Service for the Acquisition of Agri-Biotech Applications), in 2009, GM soybeans accounted for three-quarters of global soybean plantings (or two-thirds, when FAO data for total area are used). Herbicide tolerant GM soybeans remained the world’s principal biotech crop in 2009, occupying over 50% of the global area cultivated with GM crops. Another 5% of the global GM crop area is occupied by biotech rapeseed. Globally, one out of five hectares planted to rapeseed use GM varieties."]
[2010,"March","BRAZIL - new GM soybean: A herbicide-tolerant soybean jointly developed by private company BASF and public research institute EMBRAPA has received approval for commercial cultivation by the relevant national authorities. The first genetically modified crop developed within Brazil will become available in the 2011/12 season. Meanwhile, the owners will seek approval in key overseas export markets and also initiate work on the crop’s adaptation to production and regulatory conditions in neighbouring countries that produce soybeans."]
[2010,"March","Non-GM, herbicide tolerant plant: In Europe, a patent has been granted for the production of a non-transgenic plant tolerant of glyphosate and other widely used herbicides. Reportedly, tolerance is achieved by using the plant’s natural processes and without the introduction of foreign genetic material. This way, farmers would be offered a non-GM alternative that still enables them to maximize yields of key crops. Commercial application, if materialized, could prove interesting in countries where cultivation of GM material is subject to restrictions."]
[2010,"March","Biodiesel compatible cars ex-factory: General Motors announced that its new models of heavy- duty diesel pick-ups will have certified B-20 biodiesel capability (B20 is a blend of 20 percent biodiesel and 80 percent conventional diesel)."]
[2010,"April","AUSTRALIA - cultivation of GM rapeseed: After the states of New South Wales and Victoria, cultivation of GM rapeseed has also been approved in Western Australia. With the addition of the country’s most important rapeseed growing state, GM varieties will now be allowed on almost 90% of the country’s rapeseed area."]
[2010,"April","CHINA - soyoil import regulations: According to industry sources, the government is considering to tighten the procedures for granting import permissions for soybean oil and to enforce stringent rules on maximum solvent residue levels in imported oils. If introduced, such measures would affect nations exporting soybean oil to China, notably the country’s main supplier Argentina."]
[2010,"April","INDIA - agricultural support: The newly released 2010/2011 federal budget contains provisions to support agriculture as a whole, notably measures to ease the credit flow into the sector, to bring down input costs and to attract private investment into agriculture - especially for sugar and foodgrain warehousing as well as for cold storage. It also includes plans for extending the green revolution to the eastern region of the country and for organizing ‘pulses and oil seed villages’ in rainfed areas so as to enhance productivity in dryland farming and promote conservation practices. Other, nation wide initiatives to encourage oilseed production and improve productivity in that sector were not reported, nor plans to bring vegetable oil import duties back to their historic level."]
[2010,"April","INDONESIA - palm oil export tax: In response to rising global palm oil prices, in April, the ad valorem export tax will be raised to 4.5% in April (from the 3% rate applied since last January)."]
[2010,"April","INDONESIA - oil palm futures: The Indonesia Commodity and Derivatives Exchange is ready to launch a crude palm oil futures contract in April with a view to create a local benchmark price."]
[2010,"April","PERU - antidumping duties on US biodiesel: Reportedly, the provisional anti-dumping duty imposed late last year on imports of 100% biodiesel from the US has been revoked in March."]
[2010,"April","UNITED STATES - biodiesel tax break: The tax credit of 1 USD per gallon of marketed biodiesel - which expired last December, negatively affecting the profitability of biodiesel production - has been retroactively renewed until the end of 2010. To be enacted, a final bill still has to be issued. With the renewal, demand for soybean oil and other feedstock for biodiesel is set to resume. Currently, around 10% of annual soy oil output is absorbed by the biofuel industry."]
[2010,"April","Sustainable palm oil supply: RSPO has estimated current global supply of palm oil certified to comply with its sustainability criteria at 1.5 million tons per year, mostly coming from Malaysia. By the beginning of 2011, supply should double to 3 million tons as the number of certified plantations continues to rise. Due to the on-going expansion of supplies, the premium for certified palm oil is reported to have fallen from 50 USD per tonne at the end of 2008 to USD 10 today. While this should spur demand for certified oil, it could also discourage producers from shifting to the more expensive methods required to produce and market sustainable palm oil."]
[2010,"April","Environmental concerns in palm oil trade: Information published by environmental NGOs regarding alleged illegal land-clearing and improper land conversion by selected oil palm plantations in Asia could lead major traders and end-users of palm oil (including Cargill, Nestlé and Unilever) to shift sources of supply depending on the outcome of on-going investigations."]
[2010,"April","ARGENTINA - mandatory biodiesel blending: Reportedly, the long announced B5 blending mandate has come into force in March. Private sources estimate the amount of biodiesel required per year to fulfil the mandate at 860 000 tonnes. Total biodiesel production in 2010 is forecast between 1.6 and 2.2 mill tons (compared to 1.2 mill in 2009), part of which will be exported. "]
[2010,"April","MALAYSIA - mandatory biodiesel blending: After a number of postponements, the government is reported to be ready to implement B5 blending in June this year and to make available public funds to defray the costs associated with production and distribution."]
[2010,"April","Chicago futures markets: Coming May, the CME Group Inc. intends to launch an electronically traded, US$-denominated futures contract for crude palm oil using the Bursa Malaysia Derivatives ringgit-denominated benchmark. The partnership between the two platforms aims at offering an alternative means of hedging risk to companies that trade in dollars and creates new opportunities for cross-trading with soybean oil."]
[2010,"May","CHINA - state purchases of rapeseed: Reportedly, government purchases of rapeseed for state reserves will continue this year. The official buying price has been set at CNY 3900 per ton."]
[2010,"May","ICELAND - volcano eruption: The impact of the emission of volcanic ash on agricultural production in Europe and the CIS area is reported to be negligible as the magnitude of the eruption was not big enough to significantly affect regional weather patterns. However, the prolonged disruption of air travel across Europe has significantly affected parts of agricultural trade between Europe and the developing world: producers of horticultural products, cut flowers and other perishable goods in particular in Africa suffered greatly as they entirely rely on air transport and cannot easily divert to other markets. Trade in bulk commodities like oilseeds and derived products rely on shipment by sea and thus have not been affected."]
[2010,"May","EAST AFRICA - oilseed supply shortages: Reportedly, limited availability of locally grown oilseeds is causing oil crushing and refining plants to work below their installed capacity. Concerned processors use oil palm (Uganda) and sunflower and cotton seed (Tanzania) as raw material. Cooking oil consumption in both countries remains heavily dependant on imported oils."]
[2010,"May","EUROPEAN UNION - environmental sustainability of biofuel use: A study prepared by IFPRI (on behalf of the EU Commission) states that, at the currently assumed consumption levels - namely biofuels accounting for 5.6 percent of transport fuels in 2020 - the environmental sustainability of biofuels is not significantly reduced when the effects of indirect land use changes (ILUC) are taken into account. Above the 5.6% share, however, ILUC emissions could rapidly increase, potentially eroding the environmental sustainability of biofuels. For biodiesel, the study assumes that most of the required production increase comes from domestically grown rapeseed. It also claims that the environmental sustainability of palm oil-based diesel remains similar to that derived from rapeseed oil, even when peatland emissions are taken into account. To achieve maximum GHG emission reductions, the study recommends that import demand concentrate on more sustainable sugar cane ethanol. Also, the removal of import tariffs for biofuels is recommended as this should allow production and consumption to shift towards more emission-efficient biofuels, in particular sugar cane ethanol. The study has further fuelled the debate on the suitability of different biofuels and the implication of different targets. Assumptions on future EU production and import volumes and on the related direct/indirect land use changes remain controversial. The EU Commission is expected to issue its own final report on the subject at the end of 2010."]
[2010,"May","INDIA - new rapeseed futures: The National Commodity & Derivatives Exchange Ltd. (NCDEX) is reported to have launched a rapeseed futures contract last month in the Northern state of Haryana."]
[2010,"May","PERU / CHILE - fishmeal and oil production constraints: Output from the world’s leading supplier Peru is anticipated to decline further in 2010. To protect marine resources during the on-going El Niño weather pattern, the government has limited the 2010 catch in the country’s main fishing areas to 2.5 mill tons  (compared to an average of 3.8 mill tons in the past five seasons), and the fishing season will be opened only on 13 May (compared to last year’s 20 April). The cuts hit world markets at a time when global supplies are already reduced following the massive, earthquake related damage to fish processing plants in Chile, the second biggest exporter of fish meal and oil."]
[2010,"May","GERMANY - biofuel legislation: In line with the EU Renewable Energy Directive, last year Germany prepared national legislation introducing the need to proof sustainability via an officially approved certifier if biofuels were to be eligible for tax incentives and count towards national targets. Originally scheduled to come into effect on 1st July 2010, implementation has now been postponed to 1st January 2011. According to private sources, under the regulation rapeseed oil could be considered as a more sustainable biodiesel feedstock than palm oil or soy oil.               "]
[2010,"May","UNITED STATES - rapeseed meal imports: While the strict control system regarding possible salmonella contamination in rapeseed meal originating from Canada remains in place, another crushing plant in Canada has been added to the import alert list. The restrictions have lead to a temporary reduction in shipment from Canada as the USA represents Canada’s main client for rapeseed meal."]
[2010,"May","Progress in sustainable palm oil - use of certificates: Unilever reports to have secured enough certificates of sustainable palm oil to cover the entire requirements of its business in Europe (as well as in Australia and New Zealand). The effort is part of the company’s commitment to source all its palm oil from sustainable sources by 2015. Unilever uses a certificate trading programme (GreenPalm) which allows palm oil producers that follow RSPO’s criteria for environmentally and socially sustainable farming to increase their earnings by selling certificates. Until properly segregated supply chains for sustainable produce become widely available, certificates are used as an option to encourage growers to comply with RSPO requirements and certify their plantations as sustainable."]
[2010,"May","Progress in sustainable palm oil - segregated supply chains: Global vegetable oil supplier IOI-Loders Crocklaan Europe announced the imminent sale of fully segregated, RSPO-certified palm oil. The company claims to be the first supplier in continental Europe. Sales are scheduled to begin once a new refinery featuring the technology and storage capacity that is required to fully segregate sustainable palm oil from all other oils opens in June 2010. The new chain should permit full traceability and would allow manufacturers to claim that a given product only contains certified sustainable palm oil."]
[2010,"May","Progress in sustainable palm oil - INDONESIA certification initiative: Reportedly, the agricultural ministry of Indonesia is planning to set up a national certification scheme for sustainably produced palm oil (Indonesian Sustainable Palm Oil, ISPO). The scheme, which could become operational before the end of 2010, aims at protecting sales to markets where environmental concerns are important. Details on how the certificates would be granted are not yet available. The initiative follows reports about important buyers like Unilever and Nestlé suspending purchases from certain Indonesian suppliers on environmental grounds."]
[2010,"May","Trials with 100% renewable diesel: Finnish refining and marketing company Neste Oil reports that it started testing diesel fuel based exclusively on renewable raw materials on a range of different cars. Allegedly, the fuel allows a reduction in GHG emissions of 40-80% compared to conventional fossil diesel."]
[2010,"July","AFRICA - biofuel production and legislation, BOTSWANA: Reportedly, the country is set to join the list of African producers of jatropha-based biodiesel. Preparations are underway to build a plant with an annual capacity of 50 million litres. Before sufficient quantities of jatropha oil become available, tallow and used cooking oil will be the main feedstock. Under the government backed project, initially 170,000 ha of land will be planted with jatropha. Once developed, plantations are supposed to be leased to private companies as well as to local farmers. Biodiesel production aims at both the domestic and export market."]
[2010,"July","AFRICA - biofuel production and legislation, ANGOLA: Recently passed legislation regulating production of biofuels requires foreign-owned biofuel companies to sell part of their output to state-controlled oil companies with a view to meet local needs."]
[2010,"July","AFRICA - biofuel production and legislation, EAST AFRICA: Croton megalocarpus, a tree crop that produces oil-rich nuts, could soon be added to the list of African biodiesel feedstock. The tree, which takes 11 years to reach full maturity, is reported to grow well in semi-arid climates. Its oil is non-edible. Reportedly, a private company in Tanzania is ready to invest in commercial production, partly in collaboration with local small farmer cooperatives. Work on feedstock specific crushing technologies has started. In Tanzania as well as Kenya, biofuel policies are reported to specifically stimulate private sector initiatives."]
[2010,"July","AFRICA - biofuel production and legislation, MOZAMBIQUE: Reportedly, the country envisages drafting its own set of sustainability criteria for biofuel production - as opposed to criteria formulated by policy makers or the industry in more developed nations. The objective is to address the country’s specific needs before meeting the requirements of others. Food security considerations as well as the reduction of expensive and volatile petroleum imports will likely feature high on the list of criteria, compared to, for example, biodiversity preservation. According to independent experts, the main challenge will be to ensure that sustainability schemes and national policies result in the adoption of best production and management practices by the private sector and NGOs.          "]
[2010,"July","AUSTRALIA - biodiesel importation: Reportedly, a local biodiesel producer has filed a complaint against dumping of US-origin biodiesel on the Australian market. Allegedly, the imported biodiesel enjoys unfair advantages in that, in addition to US subsidies, it receives financial support through Australia’s Cleaner Fuels Grant, which is offered to both domestically produced and imported product. The claim is being investigated and could lead to the introduction of anti-dumping duties."]
[2010,"July","AUSTRALIA - GM rapeseed: The cultivation of GM rapeseed seems to be expanding steadily. Following the approval of GM varieties in Western Australia, about 20% of the nation’s overall rapeseed area is now estimated to have been planted with GM varieties. This development may pose challenges regarding the crop’s commercialization on overseas markets that are characterized by strict biotech policies and specific consumer concerns vis-à-vis GM products."]
[2010,"July","BELARUS - rapeseed export duty: Reportedly, a variable export duty will apply to rapeseed exports from June 2010. Initially set at 100 € per ton, the new tax aims at maximizing domestic processing of rapeseed, given the recent increase in the country’s rapeseed processing capacity."]
[2010,"July","BRAZIL - support to agriculture: In the 2010/11 federal budget, total outlays for agriculture will rise about 10 percent over 2009/10. Emphasis will be on production and marketing credits at subsidized rates (with most support going to family farms as opposed to commercial enterprises), as well as investment loans, rural insurance and risk management schemes, improved assistance to medium size farms, and a new programme in support of low GHG emission agriculture. Loan limits per beneficiary shall be raised for all products; the limit for soybeans will rise from Reais 450,000 to Reais 500,000 per farm. Minimum prices will remain unchanged for all products."]
[2010,"July","BRAZIL - oil palm expansion: Backed by the state as well as federal government, oil palm cultivation seems poised to expand in the Amazon region. The large-scale private investments planned in one of the country’s poorest regions are supposed to produce wealth via employment creation and income generation. Under the project, palm oil will be processed into biofuel for both domestic consumption and export. Allegedly, the project will contribute to reducing deforestation; plantations shall be established on previously deforested land and environmentally friendly practices are to be employed throughout the production chain."]
[2010,"July","CHINA - import requirements ... Canadian rapeseed: Importation of Canadian rapeseed into China is expected to continue in 2010/11 notwithstanding the phytosanitary limitations in place since November 2009. Reportedly, the two countries have agreed to extend the transitional measures negotiated last year to avoid a strict ban on imports based on possible blackleg disease contamination.  "]
[2010,"July","CHINA - import requirements ... US soya oil: Following the recent curb on imports from Argentina (based on the detection of high solvent residue levels), the United States may supply soya oil to China on the condition that official quarantine certificates are provided. In the past, the US was not in a position to provide such certificates due to different food quarantine systems. Apparently, now an agreement has been reached on certification procedures. "]
[2010,"July","CHINA - import requirements ... Argentina soya oil: In the last week of June, Argentina reported that it had reached an agreement with China to discontinue the import restriction applying to Argentinean soya oil. Official confirmation of this news is still awaited from China."]
[2010,"July","CHINA - state purchases of soybean: Introduced in 2008, government supported purchases of soybeans in the country’s North-eastern production basin is likely to continue this year. By end March 2010, state-run and privately owned firms had accumulated 6.7 million tons of soybeans. As in the case of maize, state reserves of soybean were introduced to stabilize domestic prices."]
[2010,"July","EUROPEAN UNION - environmental standards for biofuel: The Commission remains committed to enforce, from December 2010 onward, strict standards that will apply equally to EU-produced and imported biofuels. To participate in public biofuel support programmes, evidence of sustainable sourcing, production and use is expected from the industry. The sustainability criteria centre on (i) the lifecycle GHG emissions of biofuels and (ii) the type of land use underlying biofuel production. Voluntary certification schemes developed by the industry are welcome and will be independently assessed. The official stance have been well received by the industry, whereas environmental and social interest groups have called for further clarification regarding the measurement of indirect land use change effects, the definition of highly biodiverse grassland and the methodology for identifying degraded land.  With regard to palm oil, EU officials pointed out that the new directives will in no way affect crude palm oil exports to the EU market for traditional consumer products like food, cosmetics and detergents. With regard to palm oil-based biofuels, however, all supplies - whether imported or domestically produced - will fall subject to the new requirements (if they are to qualify for public support). Consequently, suppliers will, inter alia, face the onus of proving GHG emission savings of at least 35% - as opposed to the officially applied default value of 19%. RSPO or similar certification schemes may be used to prove compliance with the criteria"]
[2010,"July","INDONESIA - biofuel subsidy: The country’s 2011 budget includes provisions for continued support to biofuel production. Sales of biodiesel and bioethanol will be subsidized at a rate of Rp. 2000-2500 per litre whenever their price exceeds the market price for mineral oil-based fuel. In the years 2009 and 2010, biofuel producers were compensated at a rate of, respectively, Rp. 1000 and Rp. 2000 per litre. Currently marketed diesel contains 5% of palm oil-based biodiesel."]
[2010,"July","PAKISTAN - palm oil import duty: A reduction in the import tariff for crude palm oil from Rp. 9,000 per ton to Rp. 8,000 has been announced in the 2010/11 federal budget. Particularly Indonesia, Pakistan’s main supplier of CPO, will benefit from the duty reduction."]
[2010,"July","RUSSIAN FEDERATION - sunflower cooperation agreement: Benefiting from government mediation, the country’s Grain Union and Vegetable Oil Producers Union have signed an agreement that aims to develop the national sunflowerseed market by improving the financial sustainability of seed production and marketing. The agreement sets general principles of cooperation between producers and processors. Inter alia, it creates opportunities for using seeds as collateral when taking out production loans and envisages a minimum farm gate price of 9000 Rubles per ton of sunflowerseed."]
[2010,"July","RUSSIAN FEDERATION, BELARUS, KAZAKHSTAN - palm oil import duty: Reportedly, the three-country customs union decided to temporarily raise its tariff on packaged palm oil. A Euro 0.40 per kilo duty will apply to packages up to 1 kg and containers up to 20 tonnes. Bulk shipments will continue to be imported duty free."]
[2010,"July","TANZANIA - edible oil production: Reportedly, in recent months, several of the country’s edible oil factories were forced to suspend their operations because locally produced oil is not able to compete with imported products. Allegedly, domestic production is burdened with heavy taxation whereas imported oils enter the country free of duties. Currently, well over half of the country’s edible oil consumption is met by importation."]
[2010,"July","UNITED STATES - biodiesel tax break: After gaining the approval of the Lower House earlier this year, renewal of the tax break still has to pass the Senate. The taxation level directly and significantly affects the competitiveness of domestic biodiesel production. Hence, biodiesel sales and production have fallen markedly since the tax break’s expiry in December last year. With renewal still pending, the recovery of domestic consumption to mandated levels may be compromised."]
[2010,"July","UNITED STATES - rapeseed-based biodiesel: The government confirmed that the rapeseed diesel will be allowed to benefit from public biodiesel support programmes even though the fuel’s evaluation by the Environmental Protection Agency has yet to be completed."]
[2010,"July","Roundtable on Responsible Soy (RTRS): The RTRS, a world-wide initiative that groups stakeholders from across the soy commodity chain and includes environmental groups, is ready to introduce voluntary certification for sustainably sourced soy products. To qualify for the label, producers will need to fulfil specific principles and criteria related to environmental and social responsibility, good agricultural and business practices and legal compliance. The initiative aims at promoting responsible production irrespective of the underlying production model. Standards include prohibitions regarding the conversion of forests and of areas with high conservation value (such as rich savannahs) as well as regarding the use of the hazardous pesticides. Certification processes, compliance verification and traceability will be regulated next. Meanwhile, social interest groups have voiced concerns with regard to the dominance of GM varieties, climate implications of the crop’s rapid expansion and its use as biofuel feedstock."]
[2010,"July","Jatropha-based biodiesel: An Australian biodiesel refiner is reported to have started producing and marketing jatropha diesel on a commercial scale. The feedstock is collected across India and processed in Malaysia. Reportedly, the company is targeting a base cost of around USD 64 per barrel (or 40 cents per litre) of fuel landed in the United States."]
[2010,"July","Consumer-oriented palm oil shortening: A newly commercialized palm oil shortening/hardening is meant to help food manufacturers and industrial bakeries to meet end-consumer demands for sustainably sourced and healthy products. Allegedly, the shortening, which consists of a blend of palm and rapeseed oil, contains only palm oil certified as sustainable (by either RSPO or GreenPalm) and is characterized by a limited content of saturated fats."]
[2010,"July","Glycerine-based biofuel: A renewable fuels provider is reported to have filed a patent on a technology that allows using glycerine as main feedstock in the formulation of a stable biofuel. Inter alia, glycerine is generated as a by-product when vegetable oils or animal fats are transformed into biodiesel via transesterification."]
[2010,"July","Monitoring the fat balance in diets: According to private research supported by a consumer advocacy group, in the United States, since the introduction of compulsory trans fat labelling in 2006, the level of trans fats in selected food products and restaurant meals has diminished without being accompanied by a rise in the level of saturated fats. The study suggests progress in efforts by the food chain to reformulate food products offering a healthier balance of fats."]
[2010,"July","Accounting for biofuel GHG emissions: Reportedly, in the United States, a group of prominent scientists drew attention to the importance of proper accounting for GHG emissions that occur in the production and use of different forms of bioenergy, including biodiesel and bioethanol. Failure to do so could undermine other efforts to address climate change. The scientists cautioned that ignoring the carbon impact of bioenergy could actually lead to increases in GHG emissions because some types of bioenergy may be more polluting than fossil fuels. The US administration was invited to consider the matter in all future formulation of bioenergy legislation."]
[2010,"July","Low-carbon oil palm expansion:  Reportedly, the governments of Indonesia and the United States are considering to enter into a comprehensive partnership to control the conversion of forest and peat land by diverting oil palm expansion in Indonesia toward degraded land, i.e. areas that were cleared of forest long ago and now contain low carbon stocks and low levels of biodiversity, but are still suitable for oil palm cultivation. The effective and equitable implementation of such a strategy entails major challenges of a technical, legal, social and financial nature - which the proposed bilateral partnership would endeavour to address."]
[2010,"July","Sustainable sourcing of palm oil: In pursuance of its goal to obtain 100 percent of the palm oil it uses form sustainable sources, global consumer goods company Nestlé decided to partner with non-profit organization The Forest Trust (TFT). The performance of Nestlé’s palm oil suppliers will be audited by TFT against a set of criteria. Supplier that do not meet the requirements but are committed to achieving sustainability will be provided with technical support. The project’s objective is to establish fully responsible supply chains by identifying and addressing all major environmental and social issues."]
[2010,"August","ARGENTINA - biodiesel blending mandate: The government announced the imminent issuance of a resolution that increases the mandatory biodiesel blending rate from 5% to 7%. Furthermore, the intention to lift the rate further to 10% by the end of this year was confirmed. The country is the world’s leading exporter of soyoil - Argentina’s primary feedstock for biodiesel. Expanding local demand for biodiesel may eventually reduce export availabilities. Reportedly, the measure is meant to provide support to domestic soyoil sales and reduce dependence on soyoil exports as well as to reduce outlays on fossil fuel imports."]
[2010,"August","ARGENTINA/CHINA - soyoil trade: Reportedly, at a recent meeting of heads of state no agreement emerged regarding China’s import requirements, which brought Argentina’s soya oil sales to the country to a standstill last April."]
[2010,"August","BRAZIL - sustainable soy production: The country’s private sector has launched Soja Plus, an environmental and social management initiative adapted to the Brazilian context that includes certification of sustainable soybean production. In an effort to contribute to the conservation of natural resources, the voluntary programme aims to promote environmentally and socially sustainable production. To obtain certification, producers need to comply with a list of criteria that foresee the observation of environmental and social laws and land title regulations, the use of best agricultural practices and adoption of socially and environmentally responsible production methods. Criteria compliance is to be verified through transparent and independent auditing procedures."]
[2010,"August","CANADA - support to rapeseed sector: Reportedly, the federal government has allocated C$ 1.5 million to the Canola Council of Canada for activities aimed mainly at increasing international demand for rapeseed products. Improved market access is sought especially in the United States, Mexico, India, Japan and China. Public funds shall be matched by an equal amount coming from rapeseed growers and the industry."]
[2010,"August","EUROPEAN UNION - butter sales from intervention stocks: The sale of close to 12,000 tons of butter from intervention stores was reported. Last year’s sharp fall in price had lead to intervention purchases amounting to 76,000 tons. Reportedly,    51,000 tons of butter were already disposed of earlier this year. The decision to release stocks was taken against the backdrop of improving farmgate prices."]
[2010,"August","EUROPEAN UNION - GMO traces in imported animal feed: The Commission signalled its readiness to ease the EU’s stringent rules on the presence of unauthorized GMO traces in imported feed material. The current ‘zero tolerance’ approach is supposed to be replaced later this year by a more workable threshold that addresses the difficulties of completely avoiding presence of GMO traces. In the autumn of last year, shipments of soymeal to the EU came to a standstill following the detection of GMO traces at EU ports."]
[2010,"August","EUROPEAN UNION - application of GMO soybean patent: The European Court of Justice ruled that a patent is only valid up to the point where the GM trait is performing its patented function. This implies that once processed, i.e. after transformation into soyoil and meal, soybeans no longer enjoy patent protection. The case was referred to the Court after seed producer Monsanto claimed patent rights on EU imports of soymeal produced from Roundup Ready soybeans in Argentina, where the GM variety is planted freely without patent protection. The court found extending seed patent protection to final products to be impractical as in such case an unspecified number of derivate products would come under the control of whoever had patented the DNA of a plant. The ruling ends a long-standing dispute, allowing importation and commercialization of Argentinean meal in the EU to continue without triggering payment of royalties."]
[2010,"August","EUROPEAN UNION - Community GMO legislation: The EU Commission proposed to overhaul current EU legislation on GMO cultivation and marketing. First, legislation has been adopted that envisages the immediate relaxation of coexistence guidelines governing side-by-side cultivation of GM and conventional crops. Member states will be allowed to take more stringent measures to keep GMO cultivation isolated from other cultures, possibly outlawing biotech crops altogether in a given region or member state. Second, the following modification of community legislation on the authorization of GMOs is proposed: while science-based, EU-wide authorization procedures would remain in place, individual member states may opt for permanent moratoria on cultivation (of specific biotech varieties or GMO as a whole) purely on ethical grounds - rather than based on the assessment of adverse health or environmental effects. While this would authorize individual states to prevent GMO crops from being cultivated, they would not be allowed to ban the importation and marketing of EU-approved material."]
[2010,"August","EUROPEAN UNION - seed production competition issues: Reportedly, the European Commission decided to carry out a market investigation with regard to the planned merger of Monsanto’s and Syngenta’s sunflowerseed businesses. In view of the proposed consolidation, the Commission wants to ensure that effective competition is preserved, so as to maintain innovation and prevent prices from rising."]
[2010,"August","INDIA - soya oil futures contract: Allegedly as the first regional exchange in the country, Rajkot Commodity Exchange (RCX) in Gujarat State has added a contract for refined soyoil to its portfolio, after gaining approval to do so last March. Gujarat is the country’s main soyoil importing state."]
[2010,"August","INDONESIA - palm oil export tax: In response to the past fall in global palm oil prices, the government decided to lower, in August, the ad valorem export tax from 4.5 % (in place since April this year) to 3 %."]
[2010,"August","INDONESIA/NORWAY - joint initiative to halt forest conversion: The Indonesian government announced a 2-year moratorium (starting next year) on concessions for clearing forest and peatland - an important source of GHG emission and thus global warming. Past forest/peatland conversions into plantations and for industrial use constitute a major source of livelihood in the country. The decision to stop new concessions is part of a deal reached with Norway, which agreed to assist the country in preserving its forests. Funding for sustainable forestry programmes (worth up to USD 1 billion) shall be released from 2014, contingent on progress made in deforestation/emission reduction. Meanwhile support would be provided to set up appropriate control mechanisms, run pilot projects and to work on the issue of conflicting claims on land.  Conditions for cooperation and performance-based criteria still need to be negotiated. Logging concessions already granted to companies shall be honoured, although revocation of existing licenses might be considered in particular cases, with financial compensation or land swaps granted to affected companies. Government officials pointed out that sufficient non-forest, degraded but still suitable land was available to accommodate further growth of the vitally important plantation industries. In this regard, reaching general consensus on methodologies and procedures for identifying acceptable areas for sustainable oil palm expansion will be important. If implemented successfully, the initiative could boost international cooperation in forest preservation in line with the UN-backed REDD scheme. Norway has already signed similar agreements with Brazil, Guyana and a number of African nations, and several other developed countries have pledged funds at last year’s Copenhagen Climate Conference."]
[2010,"August","NEW ZEALAND - biodiesel subsidy: The subsidy so far granted on biodiesel blends of up to 20% (42.5 cents per litre) has been extended to blends up to and including 100%. The measure is meant to further stimulate consumption of domestically produced biodiesel. Meanwhile, private sources estimate that uptake will still fall short of the scheme’s overall funding capacity and that imports would continue to dominate domestic consumption."]
[2010,"August","RUSSIAN FEDERATION - rapeseed export duty: Reportedly, the Russian Grain Union is proposing to the Government to lift export duties on rapeseed. Should this happen, rapeseed production for export could receive a strong boost - considering the amount of land reported to be available in the country for expanding rapeseed cultivation. Introduced in 2001 to encourage domestic crushing of seeds, in 2007 the ad valorem tariff was lowered from 20 to 15 percent. Allegedly, suspension of the duty is proposed because the domestic crushing industry has exhausted its growth potential and in order to enable the industry to benefit from growing demand by the EU’s biodiesel industry.    "]
[2010,"August","TURKEY - sunseed & oil importation: Reportedly, 2010/11 import quotas for sunflower seed and oil will remain unchanged from their 2009/10 level, i.e. 650,000 mt for seed and 260,000 mt tons for crude oil. However, the import tariff for seeds will be lowered from currently 5% to 0% and from 17% to 15% for crude oil, effective January 2011. To support domestic production, only crushers who process domestic seed will be allowed to benefit from the lower duties."]
[2010,"August","UNITED STATES - rapeseed oil biodiesel: The Environmental Protection Agency, which oversees implementation of renewable fuel legislation and related support programmes, informed that based on comprehensive life cycle analyses the rapeseed oil biodiesel pathway creates a 50 percent reduction in GHG emissions compared to the mineral oil baseline. The fuel is thus ready to join soyoil-based biodiesel on the list of fuels meeting RFS-2 requirements for biomass-based diesel. Analysis of other vegetable oil-based fuels, including palm oil biodiesel, is yet to be completed. Regarding overall demand for biodiesel, the agency informed that, in 2011, 800 million gallons will be required to comply with current legislation."]
[2010,"August","Soy applications in automotive industry: After using soy-based foams in car seats and other automotive applications, motor company Ford reported to have engineered a patent-pending formula to use renewable soy products to improve rubber parts in cars while at the same time reducing the environmental footprint. Allegedly, soy oil and soy fillers can replace up to 26% of the petroleum-based content in rubber parts. Research has been supported by the United Soybean Board of the United States."]
[2010,"August","Sustainable sourcing of palm oil: Global food producer and trader Cargill decided to partner with the World Wildlife Fund to undertake an assessment of its palm oil sources in Indonesia. The objective is to measure progress amongst suppliers in the implementation of the principles established by RSPO thereby encouraging the adoption of socially responsible and environmentally sustainable production methods. The assessment shall be used to identify gaps vis-à-vis the RSPO standards and suppliers will receive specific assistance to improve their production practices. Reportedly, Cargill aims at buying 60% of its overall palm oil from certified sources by the end of 2010."]
[2010,"September","ARGENTINA - grain export taxes: The government’s special legislative power to set export taxes expired last month. Consequently, the authority to fix export duties on soybeans and other grains has reverted back to Congress, which could be open to the idea of adjusting the taxes downward. Most observers concur that the debate on whether or not and by how much export taxes should be cut is going to be a long, complex and open-ended one. Reportedly, one proposal that is being discussed in the Lower House foresees an immediate reduction in the soybean tax from 35 to 30 percent, and its gradual further lowering to 10 percent by 2015. The Upper House, however, seems likely to oppose such drastic cuts, because part of the tax revenue is channelled to provinces and provincial lawmakers are strongly represented in the Senate."]
[2010,"September","ARGENTINA - use of herbicides: Reportedly, proposals to limit the use of herbicides (notably glyphosate, which is extensively used in the widespread cultivation of GM soybeans) are under consideration in two of the country’s principal soy-producing states. The initiatives are driven by concerns about the environmental sustainability of current production practices. Proposed legislation would prohibit spraying around urban areas and envisages a complete phasing-out of the herbicide over the next decade."]
[2010,"September","CANADA – measuring environmental footprint of biofuels: A study commissioned by Environment Canada found gaps in the way biofuel plants measure emissions of GHG and other pollutants. Differences in the way biofuel facilities gather and report data make it difficult to accurately determine the environmental footprint of biofuels. According to the report, more work is needed to improve baseline data to measure pollution from biofuels plants. This could include getting the industry to agree to common standards for gathering and reporting pollution data."]
[2010,"September","CANADA - assistance to farmers: Reportedly, special aid will be provided by the government to farmers affected by recent adverse weather conditions, especially in the provinces of Alberta, Manitoba and Saskatchewan. The programmes are to be funded jointly by the provincial and federal governments. Wheat, rapeseed and barley are expected to benefit from the assistance.        "]
[2010,"September","EUROPEAN UNION - investigation on trade in biodiesel: Reportedly, the European Commission decided to investigate whether (i) biodiesel produced in the United States is being shipped into the EU via third countries, and (ii) whether US exporters shifted to blends containing less than 20 percent biodiesel so as to circumvent the bloc’s anti-dumping and countervailing duties (imposed on US imports in March 2009). The decision follows a confidential complaint lodged by the European Biodiesel Board. Investigations are expected to take about nine months."]
[2010,"September","EUROPEAN UNION - biofuel consumption targets: Unofficial sources estimate that the EU is falling short of its target for biofuel use in the transportation sector. According to EU directives, by end of 2010, biofuels were supposed to account for 5.57% of total transport fuel sales. Instead of the corresponding 18 million tons, EU biofuel sales have been estimated to reach only 15 million tons of oil equivalent this year. Year-on-year rise in biofuel consumption is estimated at around 20% in 2010, which compares to considerably higher rates in previous years. As to the type of biofuel used, consumption of biodiesel, which accounts for roughly 80% of biofuel transport fuels (expressed in energy content), is reported to be growing less strongly than bioethanol and biogas use."]
[2010,"September","INDIA - vegetable oil import taxation: In response to rumours that the government might raise import duties in an effort to support domestic farmers, official sources stated there was no intention to reintroduce or raise tariffs since such measure could increase the inflationary effect of growing global vegetable oil prices on the domestic market. As in recent years, the government’s main preoccupation concerns the effect of rising domestic oil prices on consumers."]
[2010,"September","INDONESIA - palm oil export tax: Following the recent rise in the global price of palm oil, the government decided to lift, in September, the ad-valorem export tax from 3 to 6 percent - the highest level since November 2008. The export tax is adjusted on a monthly basis with a view to ensure adequate domestic supplies, thereby preventing surges in domestic prices."]
[2010,"September","LIBERIA - land concession for oil palm development: Reportedly, a concession was signed between the government and an Indonesian company to set up a 200 000 ha oil palm plantation. In addition to generating local employment, the project comprises the development of smallholder production with access to dedicated purchasing centres and extension services.      "]
[2010,"September","PAKISTAN – government support to flood affected areas:  Oilseed production: The government decided to raise the official purchase price for sunflower and rapeseed from Rs 1600 to Rs 1800 per 40 kilo in flood-affected areas, effective September. Furthermore, concerned farmers will be provided with subsidized credit to purchase seed and other inputs, and additional centres will be set up to guarantee public and private crop procurement. Increased support to the two oilcrops is also meant to respond to the expected drop in cottonseed production, following extensive flood damage.  Oil manufacturing: Ghee and cooking oil manufacturing units in flood-affected areas have been granted permission to import required raw material free of duties."]
[2010,"September","SRI LANKA - special assistance to coconut in Northern Province: The Coconut Development Board is planning to provide special relief measures to farmers engaged in coconut cultivation in the country’s war-stricken Northern Province."]
[2010,"September","THAILAND - soya import tariff: Reportedly, the government is planning to suspend the 2% ad-volorem tariff starting January next year. The measure would aim at curbing the rise in feed costs, thereby allowing to check overall food price inflation and costs of living increase. In the past, soy imports were subject to quantitative restrictions. Purchases where then freed in 2007, when an initial duty of 4% was introduced. Industry obligations to first absorb domestic production will remain in place."]
[2010,"September","THAILAND - biodiesel blending rates: Biodiesel consumption seems set to increase further in coming years. Reportedly, voluntary blending has been replaced earlier this year by mandatory B3 fuel nationwide, and mandatory B5 is scheduled for January 2011. Furthermore, the government seems committed to develop B10, which is currently being engine-tested. The B10 target requires further expansion in the domestic oil palm plantation area so as to avoid competition between food and fuel uses and to stay away from the need to import biofuel feedstock."]
[2010,"September","UNITED STATES - rapeseed meal imports: The Food and Drug Administration has lifted restrictions on rapeseed meal imports from selected Canadian suppliers. The restrictions were introduced in December last year after detection of harmful salmonella bacteria in shipments. Reportedly, in August, two plants operated by Bunge have been freed from special import inspection at border."]
[2010,"September","Rise in palm oil production costs: Triggered by Indonesia’s prospective planting moratorium (see August 2010 MPPU issue), concern about future, gradual rises in production costs is reported to be spreading among palm oil producers in Asia. The prospect of rising limitations on future expansion in plantations - based on increasingly stringent environmental regulations - could have important repercussions across the sector, such as (i) rises in the cost of land, (ii) consolidation among companies to increase their land base, (iii) increasing investments outside of Indonesia and Malaysia (e.g. in PNG and West/Central African states), and (iv) increased efforts to raise productivity levels."]
[2010,"September","Reformulation of fat profile in food products: Reportedly, confectionary manufacturer Mars is reformulating chocolate products sold in France and the UK to reduce the content of saturated fats by 15-20 percent. Reformulation involves shifts in the type of vegetable oils employed. The company informed that by changing the fat profile it is aiming at improving the nutritional composition of its products."]
[2010,"September","Global framework for palm oil development: The World Bank and the International Finance Corporation have presented a draft framework for future engagement in the palm oil sector. In the framework, priority areas and options for action are outlined. The four thematic areas identified as being crucial are: (i) policy and regulatory environment, (ii) mobilization of sustainable private sector investment, (iii) benefit sharing with smallholders and communities, and (iv) sustainability codes of practice."]
[2010,"September","Vegetable oil-based aviation biofuel: - Camelina seed: A member of the mustard family, camelina produces an oil that seems to show promise as an aviation fuel, the specifications of which are distinct from biodiesel used for land-based vehicles. Extensive trials are being carried out, especially in North America and Europe, by both, military and civil aviation. The sector’s potential demand is reported to be high. In the United States, for instance, half of the continental military jet fuel requirement is mandated to be met by alternative fuels by 2016. The interest of commercial airlines for renewable fuels that can be sustainably produced is also rising. As an aviation fuel, camelina oil can be blended with conventional fuel at inclusion rates as high as 50%. With final approval and certification of the fuel expected next year, private sources anticipate camelina jetfuel production to rise to over 3 million tons by 2025. Allegedly, camelina can be grown in dry regions, not best suited for food crop production. To date the crop is cultivated primarily in the United States and Canada, mainly in rotation with wheat and using conventional equipment. Yield improvements via varietal selection still present major challenges. Camelina is expected to remain a regionally based feedstock and will have to compete with other feedstock.  "]
[2010,"September","Vegetable oil-based aviation biofuel: - Mexico: Reportedly, the country aims at becoming a major player in the production of renewable jet fuels. Public-private partnerships started exploring non-edible plants and vegetable oils that could be used as feedstock for renewable aviation fuel. Production would be for both the domestic market and exportation to the United States. Non-edible plants such as jatropha and salicornia would be planted on land unsuitable for food production. Currently, the country seems to lack the required refineries and part of the technology involved."]
[2010,"September","Vegetable oil-based aviation biofuel: -  Thailand: Reportedly, the country is planning to develop jet biofuels with the objective to meet demand from 2012, when European aviation regulations calling for the introduction of renewable fuels in airplanes are expected to come into effect. The goal is to become South-East Asia’s hub for the supply of green aviation fuel. Although palm oil is considered a suitable feedstock, areas for expanding oil palm seem to be limited and competing uses for food purposes and as fuel for land-based transport pose problems. Other crops, such as sweet sorghum or algae seem to offer better potential."]
[2010,"September","Fully segregated sustainable palm oil: Cargill has signed an agreement with Unilever Europe to supply fully segregated, sustainable palm oil, certified by RSPO. The oil will be physically segregated at every step of the supply chain. Cargill is in a position to offer segregated, refined oil after having received RSPO certification on selected plantations as well as refineries run by the company.       "]
[2010,"September","RSPO certified smallholder palm oil: Certification of the first smallholder oil palm scheme has been reported from Indonesia. Some 8 800 smallholders organized in 17 cooperatives have been certified to comply with the RSPO ‘Smallholder Principles and Criteria’ for sustainable production. The smallholder scheme in question is linked to a large, already certified plantation and mill operated by Cargill. Certification is expected to lead to rising incomes for producers as demand for certified palm oil is anticipated to continue expanding in coming years."]
[2010,"September","Palm oil sourcing policies: Private sources reported that a number of major, global food companies decided to stop purchasing palm oil from a particular supplier in Indonesia, based on a recently published audit of the producer’s cultivation practices. Reportedly, in the audit, concerns were raised about the sustainability of the company’s production practices, the possible breach of national laws, and the environmental impact of past deforestation and peatland conversion. "]
[2010,"October","BELARUS - export restrictions for rapeseed: After the introduction of a variable export duty for rapeseed in June 2010, in September, rapeseed oil fell subject to a six-month export ban. Reportedly, an extension of the ban to rapeseed is also being considered. The measure has been justified by this year’s shortfall in rapeseed production following adverse weather conditions. The shortfall comes in a period of rising demand caused, inter alia, by growing production of rapeseed-based biodiesel."]
[2010,"October","CANADA - support to biodiesel production: As part of the Ecoenergy for Biofuels programme, the government is set to provide support to a private producer of biodiesel and glycerol who uses animal fat and waste cooking oil as feedstock. The end-product shall be sold on the domestic market as well as exported to the United States. The investment is expected to help reducing GHG emissions while promoting a sustainable environment.       "]
[2010,"October","CHINA soybean - public production support: The soybean industry in Heilongjiang expects the government to introduce additional measures in support of soy farmers in the coming months. In the country’s main soybean province, production growth has come to a standstill in recent years in spite of several government measures supporting the sector, notably public purchasing and storing schemes and import restrictions. Despite these efforts, the region’s crushing capacity utilization rate is reported to have dropped to 20-30%. The steady expansion of imports of competitively priced soybeans in coastal provinces explains most of this development."]
[2010,"October","CHINA soybean - oversees investment: Reportedly, Chinese investors and public authorities in Argentina’s southern province Rio Negro are conducting negotiations regarding the development of 200,000 ha of soybeans. "]
[2010,"October","LIBERIA - oil palm development: A major public-private partnership has been launched to develop the oil palm industry. Participating parties are committed to environmentally and socially sustainable methods of production and to work with smallholders. The investment is seen as a central growth pillar in rebuilding the country’s economy and reducing poverty."]
[2010,"October","MALAYSIA - biodiesel production: Reportedly, the government’s recent decision to postpone by one year the introduction of B5 (i.e. mandatory blending of transport diesel with 5% of palm oil-based fuel) caused domestic production of biodiesel to virtually stop. At the current price level for crude palm oil and in the absence of subsidies, margins are reported to be insufficient to justify biodiesel production. Opportunities on the export market are also very limited due to (i) increased wariness of some buyers to purchase palm oil-based diesel based on environmental considerations, and (ii) the availability of competitively priced biodiesel from other countries."]
[2010,"October","RUSSIAN FEDERATION - export restrictions for sunflower: According to press reports, the government is giving consideration to the introduction of restrictions on sunflowerseed and oil exports in response to the prospective fall in domestic production following recent adverse weather conditions. By limiting the outflow of oilseeds, the government would aim at preventing local market prices from rising. The restrictions considered are a temporary export ban or the introduction of duties."]
[2010,"October","UNITED STATES - soybean relief payments: USDA announced that it is going to provide assistance to producers of soybeans and other crops who suffered quality and yield losses in 2009 due to high moisture conditions. Reportedly, soybean farmers that experience at least five percent loss will be eligible for a relief payment of USD 15.62 per acre planted or intended for planting in the 2009 season."]
[2010,"October","Jatropha - genome sequencing: Reportedly, a group of scientists has succeeded in sequencing the genome of jatropha curcas, a biofuel crop that has attracted interest in many countries. The non-edible crop grows on marginal land with minimum inputs, supposedly not competing with food production. However, under the said conditions, yields tend to be low and erratic, also because to date seeding material was often derived from wild populations. The identification of the plant’s genetic sequence is expected to speed up the development of proper varieties with high yield potential, better drought tolerance and other desirable traits."]
[2010,"October","Soybean high in oleic acid: Reportedly, researchers in the United States have developed - through traditional breeding techniques - a soybean whose content of oleic acid is 80% as opposed to 20% in conventional material. The level of monounsaturated oleic acid has been increased at the expense of saturated fats, supposedly creating a healthier oil. Thanks to its specific fatty acid composition, when used in the food industry, the oil remains stable at high temperatures and does not require hydrogenation - a process that creates trans fats, which were shown to be unhealthy. In order to launch the new variety at commercial level about three years will be required."]
[2010,"October","Sustainable palm oil: Reportedly, United States food manufacturer General Mills decided to stop buying palm oil from companies suspected of using environmentally harmful practices. The food company is committed to procure, by 2015, all of its palm oil from responsible and sustainable sources. Global Mills is following the footsteps of other global food companies."]
[2010,"December","AFRICA - oil palm development, Ghana: Reportedly, the government is developing an oil palm master plan to meet local demand for vegetable oil and improve the country’s competitiveness as a regional exporter. Areas covered in the plan include access to finance, land-use policies, technology transfer, transportation infrastructure, pricing mechanisms, product certification and marketing."]
[2010,"December","AFRICA - oil palm development, Uganda: A large national oil palm development project launched in 1998 is ready to enter its second phase. Under the project, smallholder oilcrop production (in particular oil palm) is raised and smallholders are directly linked with processors. Plantations are developed according to modern environmental standards. The public-private partnership builds on a loan provided by IFAD as well as local, private capital and bilateral grant money. Reportedly, the project has lead to a significant increase in oil production from domestic sources and marked improvements in average per caput consumption, while reducing the country’s dependence on imported oils."]
[2010,"December","BRAZIL - oil palm expansion: Reportedly, the government decided to introduce a set of rules that guarantees sustainable forms of oil palm expansion and prevents further deforestation. Oil palm plantations may only be established on degraded land, which would allow rehabilitation of previously deforested areas. All oil palm growers will be required to register for regular inspection. Oil palm expansion will also be monitored via satellite images, and companies buying palm oil from areas other than those earmarked for oil palm development risk loosing their environment licenses.   "]
[2010,"December","CHINA - measures to stem food price rise: sale of state reserves. Concerned about rising inflation rates and with domestic vegetable oil prices recently reaching two-year highs, the government has taken the following measure: State operated agencies have been instructed to sell - via open bidding - their reserves of rapeseed oil, soy oil and soybeans with a view to increase domestic supplies and thereby stabilize prices. Built over the last 2-3 years for market stabilization purposes, these reserves need to be sold to avoid quality deterioration. Furthermore, room needs to be freed for purchases of new-crop oilseeds and oils that have been ordered by the government."]
[2010,"December","CHINA - measures to stem food price rise: futures markets. Concerned about rising inflation rates and with domestic vegetable oil prices recently reaching two-year highs, the government has taken the following measure: Reportedly, the government has asked the country’s futures exchanges to raise margin requirements applied to trade in selected commodities, including soybeans, soya meal, soya oil and palm oil. The measure aims at deterring speculation on commodity markets.    "]
[2010,"December","CHINA - soyoil imports: Purchases of soybean oil from Argentina - which had come to halt last April when a set of strict quality requirements was introduced - have resumed in October thanks to the suspension of the new rules. Reportedly, only government controlled companies have been granted permission to import. Market observers have linked the change in policies to the country’s difficulties to secure sufficient soyoil imports."]
[2010,"December","CHINA - soybean state purchases: Reportedly, the government is ready to buy soybeans from the last crop to rebuild state reserves. At Yuan 3800 per ton of 3rd grade beans (Yuan 3844 for 2nd grade and Yuan 3880 for first grade), purchase prices would be Yuan 60 higher than last season. For wheat, the increase in the state purchase price is reported to be significantly higher, while that for maize has yet to be announced.     "]
[2010,"December","INDIA - new commodity exchange: Ahmedabad Commodity Exchange has started to operate as the country’s fifth national commodity bourse, launching futures trading in five agricultural items, comprising soybean, soybean oil, mustard seed and castor seed."]
[2010,"December","INDIA - certified palm oil: In a bid to stimulate consumption of certified sustainable palm oil, the country’s vegetable oil industry proposed to the government to apply a discounted duty on future imports of ‘green’ palm oil. The industry expects that pressure on big consumers to move toward environmentally friendly purchasing policies will rise in coming years."]
[2010,"December","INDIA - support price: Reportedly, the 2010/11 minimum support or procurement price for rapeseed has been raised to Rp 18,500 per tonne, a 1% increase compared to 2009/10."]
[2010,"December","INDIA - edible oil trade policy: With this seasons’ improvement in domestic oilseed output and generally easing food prices, producers are asking that the duty exemption granted for imports of unrefined vegetable oil be discontinued. While considering the request, the government has informed that the exemption would remain in place until early 2011. Furthermore, the government decided to extend the ban on bulk edible oil exports for another year, until September 2011.            "]
[2010,"December","INDONESIA - palm oil export tax: monthly revision. Since 2007, the tax is adjusted on a monthly basis with a view to ensure adequate domestic supplies and prevent high volatility and hikes in domestic prices. Following uninterrupted growth in international palm oil prices, in December 2010, the ad-valorem export tax on crude palm oil will be raised for the fourth consecutive month. The rates applied in October, November and December are, respectively, 7.5%, 10% and 15%. A 15% rate had not been applied since August 2008. According to private sources, local traders are concerned that the high tax rates will reduce the competitiveness of the country’s exports compared to those of the main competitor, Malaysia. Higher tax rates also imply a bigger gap between the duties applied to palm oil and palm-oil based biodiesel (palm methyl ester). With the export duty on biodiesel kept fix at 2%, companies could step up export-oriented biodiesel production."]
[2010,"December","INDONESIA - palm oil export tax: taxation system review. Reportedly, a government official stated that the current taxation system will be up for review because - although helpful in reducing fluctuations in domestic supplies and prices - the system has proven ineffective in spurring the downstream palm oil industry, i.e. did not help raising exports of higher-value refined oil as opposed to crude oil."]
[2010,"December","INDONESIA - palm oil certification: The government announced that, starting in January 2011, national certification of sustainable production (see news item in May 2010 MPPU) will become mandatory for all plantation firms and smallholders cultivating oil palm. Details on certification methods and procedures as well as compliance control are yet to be issued. Indonesia’s industry seems to welcome national certification as opposed to RSPO-controlled certification, noting that the latter has been progressing slowly."]
[2010,"December","JAPAN - voluntary trans fat labelling: Reportedly, the government plans to move to voluntary disclosure of levels of trans fatty acids in food products so as to reduce the risk of cardiovascular diseases. Mandatory labelling may be considered in the future."]
[2010,"December","KAZAKHSTAN - export ban: Reportedly, in an effort to secure domestic supplies of oils and fats, the government has banned the export of soybeans, sunseed, cottonseed, soyoil, sunoil, rapeoil and linseed oil for 6 month starting mid October."]
[2010,"December","MALAYSIA - oil palm replanting: Concerned about slow output growth and stagnating yield levels, the government has announced a new oil palm replanting scheme for 2011. The state-funded programme shall be implemented over 2-3 years and will involve some 365,000 hectares of palms older than 25 years. The previous, industry-funded scheme (which was introduced in 2008 in response to weak palm oil prices and involved 200,000 hectares) is reported to have been almost completed."]
[2010,"December","MALAYSIA - support to biodiesel: blending incentives. The Malaysian Palm Oil Board was reported to have allocated funds to five major petrol companies for investment in infrastructure for biodiesel blending. According to official sources, mandatory blending at B5 level - originally planned for January 2010 - is now set to come into effect in June 2011."]
[2010,"December","MALAYSIA - support to biodiesel: petro-diesel subsidy. Reportedly, the government may consider cutting, from next year, subsidies traditionally applied to sales of conventional diesel. The measure would end an advantage currently enjoyed by petro-diesel when compared to palm-based biodiesel. While mandatory biofuel blending is set to commence in soon, the industry is complaining that at the current, high level of palm oil prices and without public support the production and marketing of biodiesel is not economically viable.  "]
[2010,"December","MALAYSIA/INDIA - free trade pact: A bilateral trade pact set to come into effect next year will likely include, inter alia, concessions on Malaysian palm oil exports to India - which remained excluded from the India-ASEAN free trade agreement signed last year.   "]
[2010,"December","PAKISTAN - flood-related production incentives: sunflowerseed. Reportedly, the government has been charged with the formulation of a comprehensive edible oil policy that would help farmers to recover from the recent floods as well as put and end to the country’s dependence on imported oils. A package of incentives, including interest free loans, is to be prepared to encourage farmers to grow sunflowerseed for local oil production. Sunflowerseed has the advantage of being early maturing, low in irrigation water needs and drought resistant."]
[2010,"December","PAKISTAN - flood-related production incentives: rapeseed. The State Bank of Pakistan announced that it is ready to offer concessional loans to farmers sowing rapeseed in flood affected areas. "]
[2010,"December","SYRIA/VENEZUELA - joint olive oil venture: Backed by their national governments, private parties in the two countries are set to form a joint venture for olive oil production and marketing. Olive oil produced in Syria is expected to be exported to Venezuela under preferential conditions. The project is part of new efforts to increase economic integration between the two countries."]
[2010,"December","SRI LANKA - vegetable oil import duties: Concerned about recent surges in retail prices for edible oil and the resulting hardship for consumers, the government decided to reduce the taxes applied on palm and coconut oil imports. Originally introduced to encourage domestic coconut production, the duties will now be lowered from 60 to 15 Rp per kg of coconut oil, and from 50 to 10 Rp per kg of palm oil.  "]
[2010,"December","THAILAND - soymeal import duty: Reportedly, the Government decided to extend the 2% import duty on soyameal for another year. The duty had been lowered in January 2009 (from previously 4%) with a view to contain increases in feed costs. Industry requests to abolish the duty altogether have been rejected so as not to discourage local soybean production.  "]
[2010,"December","THAILAND - biodiesel mandate: Reportedly, the shift from mandatory use of B3 to B5 will be delayed from mid to late January 2011, as flooding has adversely affected local palm oil production."]
[2010,"December","THAILAND - palm oil consumer price: With a view not to add burden to flood affected people, the government-brokered, voluntary price ceiling for palm oil will remain unchanged at Baht 38 per litre - in spite of requests by oil refiners to be allowed to raise retail prices (following rises in production cost due to record high palm fruit values)."]
[2010,"December","UNITED STATES - new olive oil standards: The USDA has launched new voluntary standards for olive oils grown in and imported into the US. The objective is to ensure that labelling of all olive oils is backed by detailed, scientifically verifiable guidelines as well as tests conducted by panels of qualified tasters. To be classified as ‘extra virgin’, oils must, inter alia, be free of defects and contain no more than 0.8% of free oleic acid, which echoes the guidelines issued by the International Olive Oil Council."]
[2010,"December","Improved waste oil-to-biodiesel conversion: A group of USA researchers reported to have simplified the conversion of used vegetable oil into biodiesel. The new conversion process is claimed to be environmentally benign and considerably faster than the conventional method. The new technology’s viability at industrial scale still has to be proven."]
[2010,"December","Jatropha developments: hybrid seed material. A US company has patented a technology to produce jatropha hybrid seed at large scale. In addition to resulting in greater yield, uniformity and vigour, the hybrid material is said to permit marked reductions in handling and deployment costs for jatropha plantations."]
[2010,"December","Jatropha developments: business venture. Reportedly, global oilseed processing company Bunge has joined forces with specialized bioenergy and refining firms with the aim to develop the jatropha value chain through the introduction of advanced technologies. The joint venture set out to prove the economic viability and environmental sustainability of jatropha as energy source, thus setting the scene for large-scale deployment of jatropha plantations globally."]
[2010,"December","Certified sustainable palm oil: global supply and demand situation. Certification of sustainable palm oil started two years ago. Currently, certified oil reaches the market via three RSPO-approved trading systems: the full segregation method, mass balance calculation, or a book & claim mechanism. RSPO estimates current, actual demand for certified palm oil at 1.4 million tonnes per year - while annual production capacity is said to have reached 3 million tonnes. Leading international vegetable oil refining companies are estimating that annual global production of sustainable certified palm oil will need to rise to 15 million tons by 2015: this is because - feeling the pressure form environmental and social interest groups - more and more key buyers (such as Unilever or Nestlé) are committed to gradually move away from non-certified palm oil. However, current annual expansion is estimated at only 1.5 million tonnes globally, meaning that production could fall short of future demand. This view is supported by the fact that many oil palm producers continue to resist moving towards certification, because of costs involved and because premiums offered by the market (for certified product) are small. Reportedly, these premiums have fallen to USD 3-5 per tonne, compared to levels as high as USD 50 only two years ago. The steep drop in premiums occurred when supply of certified palm oil picked up. Overall, future growth of the market for certified palm remains difficult to predict. Some observers even warn of possible excesses of supply over demand, pointing out that buyers in some important consuming nations, notably China and India, are notoriously price-sensitive and therefore not likely to pay the premiums associated with certified oil - at least in the short to medium term.\n"]
[2010,"December","Certified sustainable palm oil: sourcing policies. According to British press, The Body Shop (a major retail company for soap and cosmetics) decided to stop buying palm oil from a supplier reported to be producing under socially unsustainable conditions in Colombia. Apparently, the supplier in question used to satisfy up to 90% of the retail company’s palm oil needs.\n"]
[2010,"December","Certified sustainable palm oil: trademark. RSPO has launched a trademark/logo for free use by product manufacturers and retail companies when packaging items that use certified sustainable palm ingredients. The mark is meant to reassure consumers that products they buy contribute to sustainable palm cultivation practices. If widely adopted, the measure is expected to induce more companies to commit using only certified palm oil.     "]
[2010,"December","Biodiesel South-South cooperation: Colombia continues to offer its technical know-how in biodiesel production to countries in Central America. After participating in the construction of biodiesel plants in El Salvador and Honduras, Colombia’s agricultural research institute CORPOICA is now reported to have started cooperation with Mexico, where a plant using jatropha and palm oil will be set up with public funding."]
[2011,"January","ALGERIA - measures to lower cooking oil prices: Alarmed by a sharp rise in consumer prices, the government is determined to reduce taxes and import tariffs on selected staple foods, including cooking oil. Reportedly, the envisaged measures would reduce cooking oil retail prices by 40 percent.   "]
[2011,"January","BANGLADESH - fix soyoil retail price: In the wake of rising domestic prices for edible oils (resulting from higher prices of imported raw material), the government obtained the processors’ agreement to keep retail prices for soybean oil below a set level in major cities. The commitment is believed to be of a temporary nature and new negotiations may be required should international prices continue to rise.    "]
[2011,"January","CHINA - measures to stem food price rise: temporary retail price stop. Government efforts to curb inflation in food prices, including for vegetable oils, are continuing. Reportedly, the government advised major vegetable oil retailers to refrain - irrespective of rising prices of (imported) raw materials - from raising retail prices until March 2011. Similar measures were last adopted in 2008, when affected companies were compensated via subsidies."]
[2011,"January","CHINA - measures to stem food price rise: sales from reserves. Sales of soybeans and of edible oils from public reserves were reported to continue at both central and regional level."]
[2011,"January","CHINA - biodiesel tax credit: Biodiesel derived from waste animal fats or vegetable oils has been exempted from paying consumption taxes. The exemption applies retroactively from January 2009 and is estimated to amount to around Yuan 900 per ton. The measure is part of government efforts to improve competitiveness in the bioenergy sector. Reportedly, national biodiesel use is targeted at 2 million tons in 2020.      "]
[2011,"January","INDIA - vegetable oil import duties: According to a senior ministry official the government is not planning to change its current import duty structure for vegetable oils as this would directly lead to higher domestic retail prices. Recently, local producers and manufacturers had renewed their calls for a reintroduction of duties on crude edible oils (which currently pay zero duty) so as to be able to better compete against imported products. The government’s position needs to be seen against the background of pronounced rises in cooking oils retail prices and general food price inflation in recent weeks."]
[2011,"January","INDIA - copra procurement price: The minimum support price for copra has been lifted by Rs 0.75 per kg for the 2011 season with a view to encourage investment and increase productivity in coconut cultivation. NAFED continues to be in charge of procurement operations. The new prices for milling and ball copra are, respectively Rs 45 250 and 47 750 per tonne."]
[2011,"January","INDIA - oil palm development: Given the country’s almost total dependence on palm oil imports, the federal government is looking into possibilities of developing domestic production. To date, the country’s oil palm development programme has produced limited results, with no more than 178 000 ha covered by plantations as against a potential area estimated at 1.03 million ha. Reportedly, the federal government has urged traditional growing states to step up efforts and has decided to also explore expansion possibilities in other Eastern states. Furthermore, the Rs 15 000 per ha subsidy granted to producers might be increased to Rs 40 000 and higher input subsidies are being considered. A special thrust is expected to be given to oil palm cultivation in the next five-year plan (2012-17).           "]
[2011,"January","INDONESIA - palm oil export tax: Following the steady rise in international palm oil prices, the government decided to lift the country’s export tax further to 20% (effective 1st January) - the highest level since 18 months. The adjustment implies a considerable burden for export sales especially of processed palm oil, making shipments less profitable compared to those of competitors, notably Malaysia.  "]
[2011,"January","PAKISTAN - sunflower support price: The government is planning to further raise the seed purchase price for 2010-11, bringing it from formerly Rs 1 800 per 40kg to Rs 2 000. The move is meant to stimulate domestic production thereby reducing dependence on vegetable oil imports. Apparently, crushing companies have agreed to pay farmers the higher price.  "]
[2011,"January","PAKISTAN - poor household consumption subsidies: Reportedly, over the last two months, the subsidized distribution of cooking oil and ghee via special government outlets has been subject to successive price increases. The rise in prices is expected to adversely affect low-income consumers."]
[2011,"January","PHILIPPINES - coconut industry roadmap: The Philippine Coconut Authority presented the Coconut Industry Roadmap 2011-2016, a six-year programme worth over Pesos 8 billion meant to raise the productivity of the sector. Proposed activities, which will require joint private-public funding, comprise schemes for planting, replanting, fertilization, pest management and seed farm development.   "]
[2011,"January","TANZANIA/BURUNDI - oil palm development: Palm oil production and processing is being promoted in the region to cater for the needs of local soap producers who at present heavily rely on imported raw material. The initiative is backed by Kilimo Trust, a NGO dedicated to the promotion of market-led sustainable agriculture among East African Community members."]
[2011,"January","THAILAND - palm oil market interventions: Following steep rises in the cost of crude palm oil, manufacturers sought government permission to raise palm oil retail prices by at least 25%, which, however, was not granted. Subsequently, temporary supply shortages and price inflation developed in the domestic market. Eventually, the government and manufacturers agreed on a one-time release of palm oil in retail packages at a fixed price so as to calm domestic markets. In turn, the government has given the green light for a gradual upward adjustment in prices - in accordance with rising raw material prices and based on a review of real costs of production. The gradual increase in retail prices is expected to reduce the burden on consumers. Furthermore, the government requested the cooperation of large palm oil producers regarding a steady flow of supplies and informed that it would consider granting special palm oil import licenses.    "]
[2011,"January","UNITED STATES - biodiesel subsidy: Finally, the extension of the biodiesel tax credit (US Dollar 1 per gallon) has been approved - referring to the year 2011 as well as, retroactively, to 2010. As a result, biodiesel production is expected to quickly return to previous levels."]
[2011,"February","ARGENTINA - soybean trade: Reportedly, the market suffered from temporary disruptions as farmers halted all grains and oilseed sales in response to government restrictions on exports and because of new strikes by truckers and port workers over pay levels.  "]
[2011,"February","BRAZIL - Amazon deforestation: Government sources reported that deforestation reached, for the second consecutive year, the lowest rate recorded since 1988. The record-breaking decrease in forest clearance is seen as a major contribution to reducing Brazil's greenhouse gas emissions. Policies that contributed to this development include sectoral pacts - such as the private sector supported effort to halt forest conversion for soybean production. In July 2010, the voluntary ban on the commercialization of soy grown in the Amazon had been extended for the fourth consecutive year."]
[2011,"February","BRAZIL - oil palm expansion: Oil palm cultivation seems set to expand over the coming years in the northern state of Pará, close to the eastern Amazon forest. Reportedly, important investments are planned by a biofuels subsidiary of state-controlled mineral oil giant Petrobras and other companies. Production would be geared primarily towards the biodiesel market, mostly for exportation (or exportation of oil for subsequent transformation into biodiesel abroad). Apparently, investors are responding to a government backed programme launched last May that offers soft loans and other incentives. Strict adherence to environmental and social safeguards is envisaged. Brazil’s biodiesel demand for domestic use and export is set to grow steadily. Over 2 million tons are estimated to be required for domestic mandatory blending alone. Current biodiesel production relies primarily on soyoil as feedstock."]
[2011,"February","BRAZIL - soybean futures: Sao Paulo based exchange BM&FBovespa announced the launch of a new, cash-settled soybean derivative. The new contract is meant to offer exporters the opportunity to arbitrage with CME in Chicago.   "]
[2011,"February","CANADA - rapeseed biodiesel GHG savings: According to a study presented by the country’s canola industry, rapeseed based biodiesel reduces GHG emissions by 90% compared to fossil diesel. The study is based on comprehensive lifecycle analysis and uses a model deemed capable of measuring the energy balance and emissions of contaminants associated with the production and use of transportation fuels. In this regard, in September last year, a study commissioned by Environment Canada found gaps in the way emissions of GHG and other pollutants were currently measured.     "]
[2011,"February","CANADA - research on oilseeds value addition - Camelina sativa and brassica carinata: Federal and provincial funding has been announced for the development of new camelina and brassica varieties for industrial applications. The crops can be grown on less productive, marginal lands. Research will focus on engineering the seeds’ oil profile for use as petroleum substitutes in a variety of high value, non-fuel applications such as lubricants, hydraulic fluids and polymers. The ultimate aim is to diversify oilseed production, introducing industrial end-products that generate greater value than traditional oilseed products."]
[2011,"February","CANADA - research on oilseeds value addition  - Soybean and rapeseed: The federal government will invest in quality and yield improvement with a view to create new market opportunities. New short-season soybeans, rapeseed varieties with improved oil content, and better disease and pest management strategies are envisaged in the programme."]
[2011,"February","CANADA - research on oilseeds value addition - Rapeseed protein: Federal funds for the development of new, value added products in agriculture will be spent for research on how to increase the value and use of rapeseed protein in the food/feed ingredient market. Ways to incorporate rapeseed protein into a variety of food/feed components will be explored."]
[2011,"February","CHINA - rapeseed oil standards: Reportedly, the country’s standards for rapeseed oil (last changed in 2004) are under review and could be amended to meet the quality and safety requirements of the domestic market. Private sources see the initiative as an effort to raise the competitiveness of the domestic rapeseed industry. Domestic rapeseed production has stagnated in recent years, and the share of rapeseed oil (from domestic sources) in total vegetable oil consumption has kept declining.     "]
[2011,"February","CHINA - high yielding soybean: Reportedly, national researchers managed to raise the yield level of locally developed soybean variety ‘Zhonghuang 35’ to the record level of 6075 kg per ha. The high yielding, high oil content variety is said to be adaptable to a wide range of production zones in the country’s northern provinces, where it is proposed for future dissemination. Similar to rapeseed, domestic production of soybeans has stagnated in recent years (as both, yields and area remained largely unchanged), and the share of soy oil (from domestic sources) in total vegetable oil consumption has dropped sharply."]
[2011,"February","CHINA - public reserve sales: The release of soya and rape seeds from public reserves continued in an effort to rein in rises in domestic prices for edible oils. However, until recently, actual sales have been limited, apparently because of unappealing floor prices used for the state auctions. Lately, sales seem to have improved thanks to the surge in prices for imported oilseeds. According to private sources, the government was also considering to release a sizeable amount of soy oil. The oil would be channelled to four companies which the government had previously ordered not to raise retail prices until March."]
[2011,"February","ETHIOPIA - refinery inspection: Reportedly, 60 vegetable oil refineries have seen their licenses suspended as they failed to meet relevant quality standards. Apparently, several processors did not employ proper machinery or resorted to mixing oilseeds to refine the oil, a practice that is not allowed.    "]
[2011,"February","EUROPEAN UNION - biodiesel production: According to private market observers, the recent surge in rapeseed oil prices - which has led to large premiums of the oil and of biodiesel over fossil diesel - could lead to the non-fulfilment of mandatory consumption levels in some member states, notably Germany. Reportedly, some processors and end users (particularly in power generation) have opted to temporarily suspend uneconomic biodiesel production/consumption, accepting to pay non-compliance fines instead."]
[2011,"February","EUROPEAN UNION - biofuel environmental footprint: Release by the European Commission of guidelines on the impact of land use changes (ILUC) on carbon savings in biofuel utilization has been postponed by six months in order to ensure that best available science is used. An interim report states that ILUC could lesson carbon savings from biofuels. A new strategy on the effects of biofuels on land use and development issues in third countries is not going to be issued before summer 2011. Reportedly, the Commission also stated that, in future, the sustainability criteria could be extended to raw materials used for the production of foods and feedstuffs.            "]
[2011,"February","INDIA - jatropha biodiesel: Reportedly, a government backed study found that, to create a financially viable and sustainable biodiesel market, jatropha based diesel need to be priced at Rs 36 per litre. The current price is reported at Rs 26.5. The study therefore recommends the introduction of public incentives, grants and other support measures.     "]
[2011,"February","INDONESIA - soybean import duties: Reportedly, to prevent consumer protests over rising food prices and stabilize markets, the government decided to suspend import duties on selected food and feedstuffs, including soybeans."]
[2011,"February","INDONESIA - palm oil export tax: In view of further rising international palm oil prices, the government decided to lift the country’s export tax to 25% in February - the highest level since the sliding tax scheme was introduced in 2007. "]
[2011,"February","LIBERIA - oil palm expansion: Malaysia-owned oil palm giant Sime Darby announced that this year it will start planting oil palms on a 220,000 ha concession granted by the government. Initially, the creation of some 30-35,000 new job opportunities is envisaged. The country’s total land under oil palm amounted to 90,000 ha in 2009."]
[2011,"February","MALAYSIA - oil palm productivity - Smallholders: MPOB has launched a government backed programme aimed at raising productivity among smallholders. The current average yield of 12-15 tons of FFB per ha is to be lifted to 18-20 tons in the short term. Interventions will focus the adoption of good agricultural practices and the production of higher quality fruit brunches. Furthermore, the government announced that it will support replanting activities over the 2011-2013 period. Independent smallholders will be granted a one-off replanting sum followed by monthly payments for two years so as to compensate the loss of income from replanting activities. The supply of high-yielding hybrid planting material by the private sector is said to be adequate. Finally, sustainability certification of smallholder production according to RSPO principles will be facilitated. In Malaysia, smallholders are estimated to account for 40% of total oil palm area and 28% of national oil output."]
[2011,"February","MALAYSIA - oil palm productivity - Plantation sector: During 2011-2013, replanting by large-scale private and government-linked plantation companies will also be encouraged via financial incentives. Reportedly, in order to avoid formation of a backlog, every year some 125,000 ha of oil palm need to be replanted countrywide."]
[2011,"February","MALAYSIA - palm oil subsidies: Reportedly, public outlays for edible oil sales at subsidized prices have grown in line with rising palm oil prices. In an effort to counter hoarding and tight supplies, last month the government ordered producers to raise subsidized oil supplies by 20%.      "]
[2011,"February","NIGERIA/MALAWI - improved soybean varieties: High performance varieties developed by IITA have been released in Nigeria and Malawi. The varieties were shown to give higher yields in multiple locations under both, on-station and on-farm trials. Reportedly, in the region, soybean is rapidly gaining in popularity as animal feed, food and raw material for high-quality protein products, and because of its capacity to improve soil fertility."]
[2011,"February","SRI LANKA - coconut production incentives: In an effort to encourage coconut cultivation and raise output, the government decided to offer chemical fertilizers at subsidized prices to coconut producers nationwide."]
[2011,"February","THAILAND - consumption policies, palm oil: Palm oil production costs have surged after domestic production was affected first by drought and then by widespread flooding, while global prices also rallied. As a result, an increasing shortage of palm cooking oil has developed in the domestic market. To avoid adverse effects on consumers, the government has taken the following measures: 1) Manufacturers have been urged to refrain from hoarding in light of soaring prices. Reportedly, the government managed to persuade leading producers to step up inventory releases and to abide by the capped price. 2) Eventually, in first week of January, an increase in the government set retail price to 47 Bath (from currently 38 Bath) has been approved so as to reflect the rise in production costs. 3) The government also promised to speed up palm oil imports (the first in three years) and said it would rethink the export plans for crude palm oil, also because of growing domestic demand from biodiesel producers. 4)The shift in mandatory biodiesel blending from B3 to B5 planned for January 2011 (which would lift CPO demand by the biofuel industry to around 1 million tons) will be postponed until at least the middle of 2011. The government’s first priority remains to produce enough palm oil for food demand.5) Finally, the government informed that it was exploring the possibility to set up a fund for subsidizing palm oil sales so as to help consumers deal with escalating prices at times of supply shortages. Several funding options were under consideration, including state-financed as well as private-public formulas."]
[2011,"February","THAILAND - consumption policies, meat/soymeal: Concerned about rising costs of living, the government plans to use the tariff income earned from soybean meal imports (2% duty per ton) to subsidize meat production. The objective is to lower retail prices of meat through a reduction of the costs of animal feed."]
[2011,"February","UNITED STATES - groundnut aflatoxin contamination: According to one industry source, this year, aflatoxin contamination will be above average and possibly the highest in the last two decades - a situation that raises concern due to the stringent limits in place today. Reportedly, the industry has learned how to reduce the aflatoxin risk via improved agronomic practices and thanks to technological innovations. Contaminated product can be cleaned using blanching and sorting; however, a considerable amount of produce is lost in the process and processors lack the blanching capacity to clean the crop in a timely fashion.     "]
[2011,"February","Trans fat policies -  Japan - trans fat utilization: Following in the footsteps of other food companies, an important retail conglomerate, Seven & I Holdings Co., decided to accelerate its efforts at removing trans fat from house brand products and will call on food suppliers to follow suit. Towards the end of last year, the government started promoting voluntary indication of trans fat content and said it was considering mandatory labelling for the future."]
[2011,"February","Trans fat policies - United States - soybean oil market share: Industry sources report that since 2006, when mention of trans-fat content was made compulsory on food labels, the share of soybean oil in the domestic edible oils and fats market has dropped significantly - from 80% in 2006 to 65% in 2009. Once high-oleic soybean varieties start entering the market, that market share is expected to improve again. The oil derived from high-oleic varieties does not require hydrogenation (thus remaining trans fat free) and contains less saturated fat - two main attributes of what are considered more healthy oils. The food industry’s demand for such oils is expected to expand steadily. Leading seed companies expect high-oleic soybean varieties to be commercially available from 2012 onward."]
[2011,"February","Trans fat policies - United States - labelling practices: An academic source recommends revising of the current labelling protocol on trans fat content in food items so as to better protect consumers from inadvertent intake of medically significant amounts of the harmful fat. Currently, when a product contains less than 0.5 grams of trans fat, labels can list the trans fat content as zero. Such labelling practice may make it difficult for the public to estimate the actual amount of trans fat consumed - an important task, considering that maximum recommended intake has been set at 1.11 grams per day."]
[2011,"February","Trans fat policies - United States - local utilization ban: In the State of California, the ban on trans fats in restaurants introduced in January 2010 is now followed by an identical ban regarding all bakery goods.             "]
[2011,"February","Coconut water - Increased interest in coconut water as a sports beverage and health drink is being reported from various regions. Allegedly, the liquid, found inside the young coconut and naturally rich in vitamins and minerals, has become one of the fastest growing categories in the global beverage industry. As the market for coconut water grows in both, main coconut growing countries as well as developed economies, harvesting young nuts for coconut water could develop into an economically attractive alternative to conventional copra processing into oil/meal. Thanks to the introduction of state-of-the-art processing and packaging techniques, international trade in coconut water is expected to expand. Import demand is seen rising in the United States, where beverage companies like Pepsi Cola and Coca Cola have started to develop coconut water based sports and ‘wellness’ drinks.    "]
[2011,"February","Jatropha investment - Further private investments in the cultivation of jatropha as biofuel feedstock are reported from Asia. A newly formed joint venture is set to expand cultivation in India and to explore possibilities in Malaysia and Indonesia. The project envisages improving productivity via comprehensive breeding programmes. The key objective is to develop hybrid plants with higher yields, synchronized maturation and desirable self branching patterns."]
[2011,"February","Sustainable palm oil - Sourcing policies: Dutch bakery ingredient firm Sonneveld will join the list of food processors that commit to use (from 2013 onward) exclusively RSPO certified sustainable palm oil. Challenged by developments in consumer markets, the company started supporting sustainable production practices last year by buying Green Palm certificates. The decision to switch to certified palm oil consolidates the company’s efforts in this field. In this context, last year, the Netherlands – Europe’s leading hub for the import and distribution of palm oil – said it was aiming at importing exclusively certified palm oil from 2015 onward."]
[2011,"February","Sustainable palm oil - World production and trade: RSPO reported that in 2010 global production of certified palm oil amounted to 3.8 million tons compared to 2.3 million in 2009, while sales rose from less than 500,000 tons to around 1.6 million tons."]
[2011,"February","GM soybean issues - Sourcing non-GM soy has become increasingly difficult in recent years as GM crops are gradually taking over the marketplace. According to a private source in the EU some feed compounders cannot fulfil contracts due to difficulties in sourcing non-GM soy. The cost of non-GM food ingredients is said to exceed that of their GM equivalents by 10-20%. An EU farmers association stated that this cost premium is not being reflected in returns to farmers. Consequently, in the long run, processors and retailers might be forced to drop non-GM ingredients for all but (higher priced) organic products."]
[2011,"February","GM soybean issues - Weed herbicide resistance: A group of scientists has warned that, in the long term, the widespread adoption of GM soy varieties resistant to the herbicide glyphosate is bound to lead to weed resistance problems. Reportedly, farmers in Australia are already facing such problems after heavy relying and overusing glyphosate, and also US farming is said to be at risk. Herbicide rotation and mechanical means to destroy weed seed ought to be considered, in particular where no-tillage is practiced."]
[2011,"February","GM soybean issues - Brazil GM soy: Local sources estimate the adoption rate of GM soybeans to reach 76% in the current season, compared to around 60% in 2008 and only 13% in 2004. Interestingly, the following factors are reported to have slowed down the spread of GM soybean lately: the spread of glyphosate resistant weeds; price premiums for GM seed and payment of royalties (or trade charges in case the royalties are avoided); and market campaigns in favour of conventional soybean."]
[2011,"March","BANGLADESH - edible oil import incentive: After introducing retail price controls to protect consumers from the effects of soaring international vegetable oil prices, the government now decided to reduce the import duty on edible oils from 15% to 10%. There is concern that, with spiralling domestic prices, per caput consumption of edible oil could fall to critically low levels. Retail prices for palm oil (an essential food item) rose to levels not seen since March 2008, while overall monthly food price inflation has exceeded 10 percent. In a separate move, the country’s banks have been asked to limit the interest rate charged on loans taken to import essential food commodities.      "]
[2011,"March","CANADA - mandatory biodiesel use: Compulsory blending of conventional diesel with 2% biodiesel has come into effect across the nation in February. "]
[2011,"March","CHINA: inflation control measures - Central Bank support: Reflecting government concerns that rising food costs are contributing to the country’s high inflation rate, China’s central bank has announced that it will use monetary policy tools - such as refinancing and rediscount loans - to promote grain production and thus stabilize prices. Similar to rice and wheat flour, edible oil prices rose 8% since October of last year. Prices for food items make up 30% of the country’s overall consumer price index basket.      "]
[2011,"March","CHINA: inflation control measures - vegetable oil import duties: Reportedly, relevant ministries have held consultations on whether to temporarily lower import taxes on soybeans and soya oil (to, respectively, 1% and 3%), while keeping palm oil duties unchanged (at 9%). The move would assist the country’s crushing and refining industry in coping with rising world prices and hopefully contribute to controlling domestic inflation. By leaving the duty on palm oil unchanged, shipments of that oil could suffer.\n"]
[2011,"March","CHINA: inflation control measures - public reserve sales: In February, successful completion of another state auction of rapeseed oil from public reserves (the seventh since October of last year) has been reported. Allegedly, the auctions played a positive role in stabilizing prices.   "]
[2011,"March","EUROPEAN UNION - GMO traces in animal feed shipments: After two years of negotiations, member countries agreed to grant technical clearance for change proposed to EU regulations on traces of unauthorized GMO in animal feed consignments. The current zero tolerance approach would be replaced by a new 0.1% tolerance threshold, which the industry considers to be more realistic and easier to implemet. If introduced, the change could safeguard vital supplies of protein feeds (notably soymeal) to the EU. In 2009, shipments of soymeal to the EU came to a temporary standstill following the detection of (unauthorized) GMO traces at European ports."]
[2011,"March","EUROPEAN UNION - ban of animal by-products in livestock feed: A partial easing of the bans introduced in the mid 1990s (to combat BSE risks) will have to wait at least until the end of this year. While the ban on using animal protein (i.e. meat and bone meal or MBM) in feed destined for ruminants as well as the prohibition of intra-species feeding will remain in place, plans are under consideration to allow farmers to feed MBM from pigs to poultry and vice versa. In case of approval, partial lifting of the bans would allow the EU feed and livestock industries to significantly cut their costs and to lower the block’s reliance on imported soybean meal."]
[2011,"March","INDIA - oil palm expansion: The industry expressed doubts regarding recent government initiatives to encourage oil palm cultivation and thus lift palm oil output to 4 million tons over the next 5 years. According to SEA, oil palm cultivation faces important hurdles, including insufficient irrigation facilities. Furthermore, legal impediments and the fact that oil palm does not enjoy plantation crop status are said to discourage private sector investments.  "]
[2011,"March","INDIA - import duties on vegetable oils: The government informed that the country’s duty structure for edible oils will remain unchanged, with crude oils attracting zero duties and refined produce charged 7.5% so as to protect domestic refining industries. Considering the strong rise in world prices and, consequently, in domestic edible oil prices, industry sources were expecting a reduction in tariffs for refined oils. Government officials stated that the duties were not contributing to food-price driven inflation and pointed to recent signs of easing inflation. The only tariff change introduced concerns crude palm stearin, whose 10% duty will be discontinued. The duty elimination is not expected to have a noteworthy effect on stearin markets."]
[2011,"March","INDIA - edible oil and oilseed marketing controls: With food prices still high, the government may decide to retain limits imposed on the volume of edible oil and oilseeds (as well as sugar) that traders may hold in stock. The limitations, which are meant to check hoarding and thus price rises, is due to expire in March. On edible oil and oilseeds, stock holding restrictions are currently applied in 18 federal states. Edible oil prices were reported to have risen about 25% nationwide since November last year, mirroring the rise in international prices. To date, several fiscal and monetary measures have been tried to bring down the prices for basic foodstuffs."]
[2011,"March","INDIA - vegetable oil procurement: Reportedly, to assist low-income consumers affected by spiralling prices, the government decided to step up domestic purchases of edible oils (as well as pulses) for distribution under public welfare schemes."]
[2011,"March","INDIA/MALAYSIA - free trade pact: The newly signed free trade agreement (which expands on the India-ASEAN trade pact that came into effect January 2010) includes significant additional tariff concessions for Malaysia’s palm oil exports to India.                "]
[2011,"March","INDONESIA - soybean consumer price: Reportedly, the government measure of temporarily suspending soybean import duties has yet to result in the hoped for stabilization of domestic retail prices. Apparently, the government is closely observing the market to decide on further policy steps to be taken."]
[2011,"March","INDONESIA - palm oil export tax: During March, export taxes in the palm oil complex will stay at the record level established in February. Custom officers reported that spiralling prices for crude palm oil have led to an extraordinary increase in the country’s export tax revenues. In January alone, the export tax collected amounted to 48% of the target set for the entire year. Given the hike in palm oil prices, the government has stepped up the control of deliveries to the national market to ensure that domestic demand is met."]
[2011,"March","LIBYA - edible oil taxes and duties: Concerned about the impact of rising prices on consumers, the government decided to suspend sales taxes and custom duties on domestically produced and imported vegetable oils (as well as wheat products and rice).          "]
[2011,"March","MALAYSIA - minimum wages for oil palm plantation workers: Reportedly, the Human Resources Ministry started discussions with government linked palm oil companies with the aim to raise wages for local and foreign plantation workers. Officials stated that workers deserved improved wages, mirroring the good prices fetched by palm oil."]
[2011,"March","MALAYSIA - palm oil export earnings: Reportedly, the country’s revenue from plantation crop exports has climbed to a new record last year, surpassing the 2008 record. Earnings rose as global demand for vegetable oils, rubber and cocoa surpassed supply, leading to higher world prices. To a certain extent, higher demand was also fuelled by the appreciation of the Ringgit against the US dollar, the currency in which exports tend to be denominated. Palm oil accounted for the bulk of last year’s plantation crop export earnings.   "]
[2011,"March","MALAYSIA - oil palm seed market: Malaysia is estimated to produce close to 90 million oil palm seeds per year. About two thirds are for domestic use, while the remainder enters exports. The country is a world leader in oil palm breeding and cloning programmes and owns some of the highest yielding varieties. Since the 1970s, exportation is prohibited to ensure domestic supplies as well as to protect related IPRs. Current exports are restricted to Malaysian companies operating overseas and to government-to-government trade with selected countries, including Colombia, Honduras, Indonesia, Sierra Leone and Thailand. Reportedly, one of the country’s leading seed producers (Felda Agricultural Services) is proposing to drop the existing seed export ban. Allegedly, the country now produces enough seed to cater for both domestic use as well as the export market. Overseas demand for certified seed is said to be huge, with Indonesia and Africa alone requiring, respectively, 130 and 50 million seedlings per year."]
[2011,"March","PAKISTAN - vegetable oil import duties: Contrary to earlier announcements, import duties on palm and soya oil will remain unchanged, according to industry sources. Late last year, duty cuts had been envisaged with a view to halt the escalation in food costs. Allegedly, the government is determined to retain the revenue derived from import taxation."]
[2011,"March","RUSSIAN FEDERATION - soybean market: Reportedly, domestic soybean producers have expressed concern over recent imports of soybean meal by a state grain trader. Foreign purchases have been  justified by the growing domestic shortage in feed grains. Concerned that local feed manufacturers might increasingly rely on imported protein feeds, soybean producers in the southern Kuban region, who produced a record crop this season, have approached the local government asking for protection."]
[2011,"March","SOUTH KOREA- soybean state reserves: Reportedly, the government announced the inclusion of soybeans (as well as wheat and maize) in public reserves in addition to rice. The measures aims at stabilizing domestic supplies of basic foodstuffs while global supplies are tight and world prices rise.  "]
[2011,"March","SRI LANKA - fertiliser subsidization: Reportedly, the government is implementing a new scheme to distribute fertilizer to coconut farmers at a reduced prices. The measure is meant to allow growers to raise production, thus taking advantage of the current record world prices for coconut products.                  "]
[2011,"March","THAILAND - palm oil consumption policies: Following up on earlier announcements, the government has implemented several measures to address the domestic shortage in palm oil: (i) crude palm oil originally reserved for biofuel production is being refined into cooking oil; (ii) palm oil stocks held by the private sector are being turned into cooking oil and distributed at discounted prices by the Public Warehouse Organization; and (iii) crude palm oil is being imported with government permission. State ordered refining operations are subsidized to ensure that end prices do not exceed the ceiling set by the government. As to foreign purchases, special import permits amount to a total of 120 000 tons. Shipments have been restricted to February and March in order not to interfere with new local supplies expected from April onward. The distribution of foreign palm oil to food industries and other domestic users is centrally controlled."]
[2011,"March","UKRAINE - voluntary sunflower oil export restriction: Reportedly, to avert the threat of formal export restrictions, the industry has agreed to temporarily cut sunflower oil exports so as to increase supplies to the domestic market. The government considers part of domestic output as a social good whose price is not allowed to exceed a given level. Following the recent surge in prices, one oil producer has come under investigation for possible abuse of market monopoly."]
[2011,"March","Global soybean market pattern - role of the United States and China: Concentration in the global soybean market continued to increase in recent years, as the example of the United States and China demonstrates. Last year, China turned into the USA’s largest market (in value terms) for agricultural exports, primarily on the account of soybeans. For certain products, notably soybeans (but also vegetable oil, sugar and cotton), China has become highly dependent on imports, while reliance on international markets remains minimal in the case of the other main staples, rice, wheat and maize. Different from the past, the country is making full use of both, the domestic and overseas markets to achieve food security. As a result, China’s influence on world markets has increased greatly as well as vice versa. For instance, China’s soybean import demand is increasingly influencing the world soybean price, while general increases in world prices started affecting markets in China, exposing the country to imported inflation.     "]
[2011,"March","Oil palm expansion - Brazil: Global agri-business firm ADM is joining the list of oil palm investors in the state of Parà. The planned investment aims at diversifying the company’s feedstock options for biodiesel production. Over the next five years, 12 000 ha of palm will be developed along with a processing plant. The company is dedicated to using environmentally and socially sustainable production practices. As part of Brazil’s Social Fuel Stamp programme, ADM has committed to purchasing produce also from approximately 600 small family farms (cultivating 6 000 ha) in the neighbourhood, providing them with technical assistance and guidance on sustainable production methods. ADM’s plantation and processing facility will conform to relevant RSPO guidelines."]
[2011,"March","Vegetable oil-based aviation fuel: European carrier Lufthansa is set to start a six-months trial with scheduled commercial passenger flights powered partly by renewable fuel. The company is waiting for the 50/50 blend of vegetable oil-based biofuel and traditional kerosene to be certified by regulators."]
[2011,"March","New private-public partnerships: Mexico - sustainable small-scale sunflowerseed: The Inter-American Development Bank and PepsiCo will join forces in a social development initiative to revive sunflower production in Mexico. The 5-year partnership includes the provision of loans, management support and technical assistance to small farmers. PepsiCo is committed to purchase the farmers’ entire crop over 7 years, thereby securing the supply of edible for the company’s production of snacks in the country. Production will be based on high-oleic sunflower varieties that valued for their special health properties."]
[2011,"March","New private-public partnerships: Indonesia - forest conservation in oil palm: Indonesian oil palm business Golden Agri-Resources Ltd has entered a multi-stakeholder partnership involving the Government of Indonesia and The Forest Trust that aims at achieving long-term sustainability in its palm oil operations - in both, environmental and social terms. In an effort to find solutions towards forest conservation, the development of high carbon stock forests, high conservation value forest areas and peat land will be subject to strict controls. In addition, free, prior and informed consent for indigenous and local communities will be guaranteed as will compliance with relevant laws and national interpretations of RSPO principles. The company committed to regularly evaluate and publicly report its performance in these areas."]
[2011,"March","Rapeseed - blackleg disease control: By sequencing the genome of the blackleg fungus, a French-Australian research team has made a significant step towards controlling the blackleg disease, which causes widespread damage to rapeseed cultivation worldwide. The discovery will help to improve disease resistance in rapeseed varieties and will allow to tell farmers which varieties they should plant to prevent crop damage. Reportedly, in 2003, the disease caused 90% yield losses in some regions of Australia, and since 2009, China requires rapeseed imports to be certified 100% disease free to prevent the fungus from spreading in its territory. "]
[2011,"March","Environmental footprint of plantation crops: A new international research project called Stability of Altered Forest Ecosystems (SAFE) has been launched in Malaysia with government backing. The project will look into the effects of forest fragmentation and the impact plantations have on biodiversity. The private foundation that is funding the project (and has links to oil palm business) committed to publish all research results and to promote corrective action if required. Meanwhile, an international NGO has issued a report claiming that oil palm expansion in Borneo Island continues to include conversion of carbon-rich peat swamp forests.                "]
[2011,"April","ARGENTINA - trade regulation: ONCCA, the government agency responsible for regulating agricultural trade has been dissolved. Its responsibilities, including the administration of subsidies and export permits will be overseen by an interministerial commission. Reportedly, export licenses will be issues by the Ministry of Agriculture and need to be renewed every month."]
[2011,"April","ARGENTINA - trade regulation:  Reportedly, six of the country’s leading grain export firms have been suspended from a government registry while the state tax agency is investigating about possible tax evasion. The temporary suspension limits the companies’ possibility to export and could expose them to higher income taxation. A contraction in the country’s shipments of soybeans, soyoil, soymeal as well as biodiesel is possible."]
[2011,"April","CHINA - sales from state reserves: Reportedly, the last state auction of rapeseed oil ended with a sell out thanks to attractive floor prices, bringing the total volume of sales since last October to 870 000 tonnes. By contrast, two consecutive auctions of soybeans ended with zero sales. Apparently, in the latter case, floor prices were set above market prices. Ample commercial stocks following massive imports also weighed on buying interest. It appears that to date only a fraction of public soybean reserves (estimated at 2.36 million tons) has been sold. Meanwhile, the government is coming under pressure to free storage space in order to be able to buy from the new crop."]
[2011,"April","CHINA - draft 12th 5-year plan (2011-2015): According to government officials, the country will not significantly raise its imports of staple agricultural commodities during the next five years given the availability of ample state reserves and thabks to the anticipated production increases. To achieve the production targets, the government is committed to strictly protect arable land, keep total crop acreage stable, and raise productivity levels. However, in the case of oilseeds and derived products, improving the country’s self-sufficiency rate continues to pose challenges. Home-based production is not keeping pace with deamd expansion. Total oilseed production in 2011 is targeted to grow no more than 0.3% from last year. Whereas minimum purchase prices for grains shall be lifted by 22%, oilseeds don’t enjoy such support.    "]
[2011,"April","CHINA - promotion of alternative oilcrops: Reportedly, state officials recommended to encourage the development of woody oil-bearing trees to lower the country’s import dependence on oilseeds and derived products. Walnut, oil-tea camellia, olive and similar trees are said to offer considerable untapped potential and could be established on non-farming land, such as mountainous areas. To increase cultivation of these crops specific producer support measures will be needed."]
[2011,"April","CHINA - confectionary soybean: Reportedly, confectionary use of domestically grown soybeans has expanded significantly in recent years. With demand for protein foods on the rise, the country’s food industry is keen to process whole soybeans for both domestic consumption and export. Food manufacturers are attracted by the non-GMO nature and high protein content of domestically grown beans. As a result of this trend, the share of home-grown beans that is not crushed has grown to around 65-70%. Also the amount of imported soybeans that is absorbed by the food industry is increasing. At the same time, China’s exports of soy-based protein foods (which typically are certified GM-free) have increased. The country is currently estimated to account for half of total international trade of such products.      "]
[2011,"April","EUROPEAN UNION - GM traces in imports: While waiting for Brussels to confirm the modification of the EU’s  regulation governing GM traces in animal feed shipments (see also issue no. 23, March 2011), trade organizations already started lobbying for a comparable regulation to be introduced for shipments destined for human consumption. The European Commission informed that currently there were no plans to draft such a proposal."]
[2011,"April","EUROPEAN UNION - special biodiesel duties: Reportedly, the European Commission is considering widening the anti-dumping duties imposed on US biodiesel imports in March 2009 and possibly extending them to Canada. In future, purchases of certain biodiesel blends from Canada and all US imports could face duties in excess of 400 € per tonne. The initiative follows a year of investigations, which, reportedly, revealed transhipments of US material through Canada as well as a shift in US exports to B19 blends to circumvent existing duties. If endorsed by EU members, the new duties could come into force towards end 2011 and remain in place until 2014.    "]
[2011,"April","EUROPEAN UNION/MALAYSIA - palm oil trade: Private interests in Malaysia are increasingly frustrated by the EU’s strict requirements regarding the environmental footprint of biofuel feedstock, notably palm oil. EU officials underlined that the regulations apply to all feedstock equally and that all shipments of certified sustainable produce are welcome. It was also pointed out that shipments destined for food and industrial uses other than biofuel faced no formal restrictions. As to the ongoing bilateral free trade agreement talks between the two countries, they will likely include discussions about a sustainability chapter addressing EU palm oil importation issues.      "]
[2011,"April","GHANA - new commodity exchange: Official sources announced the establishment of a commodity exchange for agricultural products, focusing on soybeans, rice and maize. A regulatory framework is currently under preparation. Operations are likely to begin late in 2012."]
[2011,"April","INDIA - oil palm development: The following details have emerged regarding the government’s new plans in this field: a budgetary allocation of Rs 300 crore has been made to aid the establishment of 60 000 ha of new plantations. Anticipating a yield of 5 tonnes per ha, the initiative aims at an annual output of 300 000 tonnes of palm oil after 5 years.    "]
[2011,"April","INDONESIA - palm oil export tax: Mirroring a decrease in the international price of palm oil, in April, the country’s export tax on crude palm oil will be lowered from previously 25% to 22.5%. "]
[2011,"April","INDONESIA - palm oil export tax: Reportedly, the government is looking into the possibility of replacing the progressive taxation system with a flat tax on crude palm oil. Various options are being considered. Critics of the progressive tax system, which was introduced to safeguard supplies of palm oil to the domestic cooking oil industry, say that progressive taxation tends to discourage farmers and hampers the development of the downstream palm oil industry.    "]
[2011,"April","MALAYSIA - biodiesel developments: Reportedly, the government remains committed to introduce mandatory B5 blending this year although palm oil sold for traditional uses has been fetching record prices in recent months. From June, with a 5-year delay, sales of blended diesel will be introduced in stages in the different states. Blending facilities are being set up with government support. To make biodiesel competitive, sales will be tax exempt and a variable subsidy will apply to pump prices. High mineral oil prices and the anticipated relaxation in palm oil prices should help containing government outlays. This year’s step-wise implementation is estimated to require maximum 100 000 tonnes of biodiesel; later, for nationwide operation, 500 000 tons will be required. For comparison, estimates of the country’s installed production capacity range between 2.6 and 3.4 million tons.  Until now, export did not exceed 200 000 tonnes (unofficial records).          "]
[2011,"April","MALAYSIA - sustainable oil palm development: The Sarawak State Government (Borneo Island) issued a statement illustrating its commitment towards socially responsible and environmentally sustainable oil palm development. Last year, Sarawak reported the largest oil palm expansion in the country. Currently, the state has allocated 700 000 hectares of peatland for oil palm cultivation. Initiatives taken to ensure responsible peatland use are detailed in the document, which is available at http://www.sarawak.gov.my/en/media-centre/in-the-news."]
[2011,"April","NEW ZEALAND - biodiesel subsidy: Under a 3-year programme launched by the government in 2009 to encourage investment into national biodiesel production a subsidy is being granted on all sales of domestically produced biodiesel. Reportedly, take-up of the subsidy has, however, been slow, suggesting limited industry investment in the sector. According to industry sources, now a number of large projects are ready for implementation; but investors are asking for assurances from the government that the current subsidy will be extended for further three years.     "]
[2011,"April","SOUTH KOREA - soybean import duties: In addition to the recent inclusion of soybeans in state reserves (to stabilize domestic foodstuff supplies), the government decided to reduce the import tariff on soybeans (and other food commodities). The measures is scheduled to remain in place until the end of 2011.    "]
[2011,"April","THAILAND - palm oil consumption policies: In spite of indications that palm oil prices at the global level (and hence also at national level) are set to come down, the government decided to retain the price control measures introduced last January (to stabilize the domestic market) for three more months. Hence, the palm oil retail price remains at 47 Bath per litre and the FFB price at which crushers buy from farmers remains at 6 Bath per kg. Also, for a given volume of purchases, eventual losses incurred by crushers and refiners will be compensated for by a state subsidy of 1.79 Bath per litre.      "]
[2011,"April","UNITED STATES/EUROPEAN UNION - soyoil-based biodiesel: The issue of compliance of soyoil-based biodiesel with the respective renewable energy regulations in force in the two countries continues to be unresolved. While under the United States’ RFS-2, the default GHG emission saving of soyoil-based biodiesel was defined as 57% (which compares to a minimum requirement of 50%), under the EU’s RED, biodiesel made from soyoil credits for just 31% GHG emission reduction (as against the requisite 35%). The US industry claims that the RED’s gradual introduction among EU members has started eroding US shipments of soybeans and soyoil to that market (- virtually all of the soybean oil processed from US soybeans in the EU is reported to be used for biodiesel -) and is therefore urging the US government to initiate bilateral discussions with the EU and to seek consultations with third, equally affected countries."]
[2011,"April","Sourcing of certified sustainable palm oil for food: US food company Kellogg announced that its world wide palm oil use will be matched by purchases of RSPO-endorsed GreenPalm certificates (NB: the money raised in certificate trading is used to reward palm producers for working in a sustainable and responsible way). Once sustainably grown produce becomes available in sufficient quantities via reliable, fully segregated supply chains the company committed to purchasing directly certified sustainable palm oil. Reportedly, today, reliable and segregated supply chains for certified produce can only be found in the European market."]
[2011,"April","Sourcing of certified sustainable palm oil for food: From last month, the UK subsidiary of AAK, a global manufacturer of oils and fats, is using certified sustainable palm oil in its full range of bakery fats and other standard products. The company committed to do the same for palm oil stearin from 2012/13 onward. Customers have been reminded that in order to claim ethical sourcing at subsequent marketing stages, all parties of the supply chain must become members of RSPO and need to obtain RSPO approval of their equipment and operations."]
[2011,"April","Oil palm productivity: Effort are underway to accelerate, through improved breeding techniques, the development and commercial release of superior seed material without making recourse to genetic modification. Malaysian biotechnology company ACGT (Genting Plantations Bhd) informed about its work on genomic-based marker-assisted selection technology, which aims at reducing the long breeding cycle of oil palm from 12 to 6 years.  "]
[2011,"April","Biofuel certification and supply issues:  Integrated palm oil supply chain: Global renewable energy provider Mission NewEnergy Ltd. and Malaysian palm oil producer Felda Global Group have entered into a long term supply agreement establishing a fully integrated supply chain for certified palm biodiesel. To comply with European GHG saving targets, carbon emissions along the entire supply chain will be certified using ISCC (International Sustainability & Carbon Certification System). ISCC certification conforms to the EU’s Renewable Energy Directive and, in Germany, companies supplying biofuel need it in order to qualify for state subsidies and privileges."]
[2011,"April","Biofuel certification and supply issues:  New certification system: The Roundtable on Sustainable Biofuels (RSB) has launched the RSB Certification System. Reportedly, the system provides the assurances operators need to guarantee the sustainability and traceability of their feedstock and fuels. The system has received provisional recognition under Germany’s regulatory scheme for biofuels."]
[2011,"April","Jatropha-based aviation fuel: Mexican air carrier Interjet and Airbus reported their first test flight using locally produced jatropha-based biofuel. The objective is to commercialize aviation biofuel in the country and thereby allow carbon neutral expansion in the sector. The companies pointed to CO2 life cycle studies showing that the use of jatropha-based fuel can reduce the overall CO2 footprint by up to 80% compared to standard aviation kerosene.                                                  "]
[2011,"April","New functional fats: The introduction, in various countries, of official requirements to eliminate health damaging trans-fat from food products resulted in food manufacturers increasing the use of saturated fat where solid fats are needed for functionality. Although saturated fats are a valid alternative to trans-fat, their intake also needs to be controlled. In this context, global vegetable oil supplier IOI-Loders Croklaan has launched two new shortenings for use in the bakery industry that, allegedly, allow reducing saturated fat utilization."]
[2011,"May","ARGENTINA - foreign land ownership: Concerned that overseas investors could control a significant percentage of the country’s farmland, the government reiterated plans to limit the amount of farmland foreigners can buy. Apparently, with global commodity prices rising, foreign investment in fertile farmland in Argentina and Brazil is increasing, leading, inter alia, to rising land prices. Reportedly, Brazil, Uruguay and Paraguay already took steps to retain control over land ownership. In the countries concerned, the agricultural sector contributes significantly to export earnings and tax revenues. Under Argentina’s proposed policy, foreign land purchase ability could be restricted to  1,000 hectares. Past land acquisitions would not be affected. Recently, we reported about negotiations between Argentinean authorities and investors from China over the development of 200,000 ha of soybeans (MPPU October 2010).   "]
[2011,"May","ARGENTINA - trade control: The agricultural ministry assured the industry that the government was not considering to create a national grain board controlling trade, and in particular the exportation of maize, oilseeds or oilseed products. He added, that, however, the administration stood by its intervention in agricultural markets to ensure adequate domestic supplies.  "]
[2011,"May","AUSTRALIA - draft palm oil labelling bill: Tabled in parliament last year, the proposed bill calls for specific labelling standards being applied to food products that contain palm oil. Under current labelling laws, palm oil (which is estimated to be used in approx. 40 % of food products) falls under the generic label “vegetable oil”. Under the proposed bill, consumers would be specifically informed about the inclusion of palm oil in foods. Furthermore, the use of certified sustainable palm oil (conform with RSPO criteria) would be encouraged. In a public hearing, Malaysian officials criticized the bill stating that it was based on misleading claims, that palm oil would be singled out as the only product with mandatory labelling for reasons not related to health or nutrition, and that palm oil would be classified as a single generic product based on the environmental impact of production methods without differentiating between countries of origin. Malaysia’s extensive forest and wildlife preservation policies were also illustrated. As to the bill’s recommended use of certified sustainable produce, attention was drawn to the high cost of certification, especially for smallholder producers."]
[2011,"May","AUSTRALIA - special biodiesel duties: The country introduced anti-dumping duties on imports of biodiesel from the United States. Triggered by complaints from local biodiesel producers, an official investigation found that shipments of subsidised biodiesel had been sold to Australia, harming the domestic industry. Australia itself currently offers a tax break worth around A$ 0.40 per litre to producers and importers of biodiesel. The measures is scheduled to expire in June this year. Australia’s anti-dumping initiative is very sililar to measures introduced in the European Union.    "]
[2011,"May","BRAZIL - biodiesel policy: Compared to the previous administration, the new government is reportedly taking a more moderate stance regarding domestic biodiesel production and utilization. The new trend is said to reflects concerns about the country’s high dependence on soyoil as feedstock (at a time of tight supplies and high prices in Brazil and worldwide) as well as about insufficient supplies of alternative oils as raw material for biodiesel. Reportedly, last year the biodiesel industry absorbed as much as 25% of total domestic soyoil output - compared to less than 5% three years earlier. The second most used feedstock is tallow, part of which is imported into the country. Reportedly, the government negotiated with the biodiesel industry to delay the introduction of mandatory B7 admixture (originally planned for January 2011) by at least 6 month, thus keeping in place the B5 level. In the meantime, measures will be taken to encourage production of alternative vegetable oil feedstock for biodiesel."]
[2011,"May","CHINA - sales from state reserves, soybean seed: Reportedly, state auctions aimed at cooling the rise in food prices have continued. Following two auctions in March that failed to attract buyers’ interest due to high floor prices, in April, auction prices were set at levels attractive to crushers, i.e. Yuan 3500 per ton, which was about Yuan 200 below the market value of soybeans imported from Brazil. According to trade sources, crushers buying from state reserves at discounted prices have agreed to cap retail prices for soybean oil at some Yuan 1000 less than the current market price, thus contributing to government efforts to control continued food price inflation. Reportedly, the on-going sale from state reserves could amount to up to 3 million tons, which, if confirmed, could lead to the deferral or cancellation of several import orders. "]
[2011,"May","CHINA - sales from state reserves, edible oils: Auction of rapeseed oil state reserves (aimed at cooling the rise in food prices) continued in April. Reportedly, part of the rapeseed oil sales was reserved to state-owned refining companies. Auction prices were reported to range between Yuan 8900 and 9600 per ton (which compares to market values around Yuan 10100), with the lower price being reserved for state-owned companies that committed to keeping edible oil prices stable for another two months. Private sources estimate that cumulative sales during the current season to amount to 1.5-2 million tons. During the forthcoming season, public stockpiling could be scaled down due to the expected higher rapeseed prices. Soybean oil: Public soybean oil reserves have been estimated at 2.2 million tons in mid April."]
[2011,"May","CHINA - retail price control: Reportedly, the government decided to extend the 3-months cap on vegetable oil retail prices that was pushed on leading crushing and refining companies last January with a view to control food price inflation."]
[2011,"May","CHINA - biofuel policies: Official sources reiterated the country’s decision to limit all uses of grains and edible oils for biofuel, alcohol and other non-food/feed purposes. The move confirms the country’s determination to protect domestic supplies of staples products for human and animal consumption."]
[2011,"May","ETHIOPIA - edible oil sales: Reportedly, domestic markets have run out of edible oil supplies, which depend heavily on imports. Since retail price caps have been introduced last January to protect consumers, importers found it increasingly difficult to market vegetable oils, the prices of which have surged in international markets. To break the deadlock, the government reportedly decided to buy all palm oil stocked by traders and release it onto the market, shouldering the losses resulting from price differentials. The country’s edible oil market is expected to be dominated by government sales for the remainder of this year.    "]
[2011,"May","EUROPEAN UNION - energy taxation policy: Reportedly, the European Commission is set to table a proposal to reform energy taxation throughout the Union. The proposal aims at improving coherence and creating a level playing field for all types of fuels, including environmentally friendly biofuels, thereby helping the bloc to achieve climate change objectives. The new directive would separate fuel into two taxable components based on their CO2 and energy content, rather than being solely based on volume as at present. The proposed regime could alter the tax structure for different types of fuels, with important repercussions for automotive industries and other industrial sectors as well as for (currently tax exempted) agricultural producers. The draft law would need need to be approved by the European Parliament and Council.             "]
[2011,"May","INDIA - edible oil marketing controls: Scheduled to expire in last March, the limits imposed on the volume of edible oil and oilseeds that traders may hold in stock have now been extended until the end of September. The limitations are meant to prevent hoarding and thus price rises as well as to facilitate state procurement when domestic supplies are tight."]
[2011,"May","INDONESIA - palm oil export tax: Mirroring a further drops in the international price of palm oil, in May, the country’s sliding export tax on crude palm oil will be lowered from previously 22.5 to 17.5%. The local oil palm industry continued to criticize the taxation system, claiming that it hampers trade and discourages investment."]
[2011,"May","KENYA - GM crops: Reportedly, Kenya is set to join the list of African countries in favour of growing genetically modified crops. According to the press, the long awaited Biosafety Act and respective regulations could come into effect this month. Under the new policy, the National Biosafety Authority will be responsible for granting licences to producers of GM crops proven to have no negative effects on the environment. According to official sources the controversial technology can help addressing food shortage in the country. In Africa, cultivation of GM crops is already allowed in Egypt, Burkina Faso and South Africa."]
[2011,"May","TANZANIA - edible oil production: Reportedly, the removal of import duties on vegetable oil in 2009 has made production of edible oil from locally grown seeds (mainly sunflowerseed) unprofitable. To correct this situation, the government recently decided to exempt oil manufacturers using home-grown seeds from paying VAT. Apparently, the move has resulted in a strong rise in the demand for local oilseeds and, eventually, to acute shortages. The ensuing sharp increase in prices reportedly has forced most of the country’s edible oil processors to suspend production. Eventually, the observed rise in prices and demand should act as a strong incentive for domestic oilcrop production.             "]
[2011,"May","THAILAND - palm oil consumption policies: Shortage of palm cooking oil in the domestic market is reported to persist. Concerned about adverse effects on consumers, the government decided to indefinitely postpone the planned shift in mandatory biodiesel blending from B3 to B5, and even ordered a cut in the mandate from B3 back to B2 during the months of March and April."]
[2011,"May","THAILAND - soyoil retail price: At a meeting between the state committee overseeing product prices and edible oil manufacturers an agreement has been reached to raise the price for one-litre bottled soybean oil from Baht 46 to 55. The adjustment was made to reflect recent rises in production costs, in particular the higher cost of imported soybeans. The new retail price shall remain in effect for at least three months. The manufacturers’ original request for a stronger price hike was rejected as it would have posed too heavy a burden on consumers. Palm oil producers refrained from asking for similar upward adjustments, which leaves the retail price for palm oil at Baht 47.   "]
[2011,"May","UNITED STATES - imports of substandard olive oil: According to study recently completed by a renowned university most olive oils imported into the US fail to meet the international criteria for “extra virgin olive oil” but still find their way to the retailers’ shelves labelled as such and sold at a premium. While excellent imported and domestically produced olive oils are available in the market, many of the country’s top selling imported olive oils reportedly failed to pass the relevant chemical and sensory tests. In the US, demand for “extra virgin” olive oil has enjoyed steep growth rates in recent years and nearly 100% of olive oil consumed in the country is reported to come from imports."]
[2011,"May","UNITED STATES - soyfoods market: Reportedly, sales of convenience foods made from whole soybeans or soy protein ingredients continued to experience strong growth even if the overall category has matured during recent years. Although the soyfoods market faces a number of challenges, demand growth is forecast to continue in the near term thanks to positive market drivers such as further rising consumer interest in meat-free foods and revised federal nutrition guidelines.    "]
[2011,"May","Investment in jatropha: Further investment in jatropha curcas as biodiesel feedstock is reported from South America. In Peru, Heaven Petroleum Operators SAC (allegedly the country’s largest biofuel producer) has announced the development, over the next 10 years, of 50 000 ha of jatropha in the southern, semi-arid region of Ica."]
[2011,"May","Jatropha aviation fuel: A study prepared by a respected academic institution and funded by Boeing sees jatropha-based biodiesel as a potential substitute for traditional jet fuel. The report states that jatropha can deliver strong environmental and socioeconomic benefits as it is normally grown on land unsuitable for farming. According to the study jatropha fuel allows GHG emission reductions of up to 60% when compared petroleum-based jet fuel. Faced with constant rises in fuel prices and calls to become more environmentally responsible, civilian as well as military aviation have shown increased interest in jatropha fuel."]
[2011,"May","Certified sustainable palm oil: RSPO decided to suspend the certification process for an important palm oil plantation in Malaysia until an on-going dispute with natives over plantation land is resolved. The company, which has been given a deadline for reaching an equitable solution over compensation issues, accepted the decision and is working closely with RSPO to find a solution fair towards all parties.  Reportedly, this is the second time a company breaching RSPO principles is facing censure. The case is putting to test RSPO’s capacity to implement voluntary dispute resolution mechanisms and sanctions that are acceptable to its entire membership. Meanwhile, consumer good manufacturer Unilever, which buys palm oil from the plantation company in question, said that it might review its buying position if the supplier failed to address the alleged violations."]
[2011,"May","Lending framework for global oil palm development: After an 18-month moratorium on lending for new palm oil investment and extensive consultations with a wide range of stakeholders, the World Bank/IFC Group adopted a new framework and strategy for future engagement in the global palm oil sector. The Group recognizes the potential of palm oil production to contribute to poverty reduction - provided good environmental and social practices are followed - and hopes to make a contribution to strengthening the sectors’ sustainability. Future lending by the Group will focus on four key areas: (i) regulatory and governance reforms, (ii) responsible private investments, (iii) improved benefit sharing with smallholders and communities, and (iv) development and widespread adoption of environmentally and socially sustainable standards and codes of practice. Priority will be given to (a) institutional and market initiatives that support smallholders and foster benefit sharing with rural communities, and (b) initiatives that encourage production on degraded lands and seek to improve productivity of existing plantations.New screening and assessment procedures will also be introduced to enable appraisal of opportunities and risks around issues of land use and acquisition, governance, community concerns and working conditions."]
[2011,"June","ARGENTINA - trans fat regulation: According to industry sources, the country is set to become the first nation in Latin America to limit the presence of trans fat in food products. Reportedly, under new legislation that is expected to come into force by mid-year, trans fat content in vegetable oils and margarines will not be allowed to exceed 2% (not including trans fat naturally occurring in animal and dairy fat)."]
[2011,"June","ARGENTINA - soyoil exports to China: Reportedly, following Argentina’s decision to definitively lift import restrictions on various consumer goods from China, Argentine exports of soyaoil to China have finally resumed. Such exports came to a virtual standstill in April 2009, when China introduced very stringent quality requirements for imported soyaoil following Argentina’s new import measures."]
[2011,"June","ARGENTINA - biodiesel price: Private sources reported that, in order to stimulate domestic biodiesel producers to increase their sales to the national market, the government has raised the retail price of biodiesel to the equivalent of US$ 1 210 per tonne (from previously US$ 902).          "]
[2011,"June","CHINA - public rapeseed stocks: The government is expected to soon start buying rapeseed (from the crop that is currently being harvested) to replenish state vegetable oil reserves. Reportedly, since last October, total release of rapeseed oil from government stocks amounted to about 1.8 million tons, bringing state reserves to below 1 million. The government is expected to pay Yuan 4 600 per tonne of rapeseed - about 18 percent more than last year - to help improve farmers’ income and to reflect increases in production costs."]
[2011,"June","INDIA - oilseed production support:  According to the Agriculture Ministry’s Commission for Agricultural Costs and Prices, the government might offer higher procurement prices for monsoon-grown oilseeds. The move should compensate farmers for recent rises in production costs and should help encouraging domestic oilseed production. In recent years, grains and rice have been accorded higher rises in procurement prices than oilseeds.  "]
[2011,"June","INDONESIA - palm oil certification: Originally, scheduled to be launched in January this year, mandatory ISPO certification (Indonesian Sustainable Palm oil) is reported to be almost ready to start. The government is set to appoint an ISPO Commission that will manage the certification system and issue the required approvals to sustainably managed plantation companies. Initially, some 20 plantations will be selected for trials of the new certification. Reportedly, companies found to be breaking ISPO rules are going to be subject to sanctions. In the meantime, according to RSPO, the amount of Indonesian produce enjoying (internationally recognized, voluntary) RSPO certification has reached 1.2 million tons."]
[2011,"June","LIBERIA - foreign oil palm investment: Two palm oil firms from, respectively, Malaysia and Singapore have been granted concessions to develop oil palm on a total of 420 000 ha. Although addressing primarily domestic food needs, in the longer term, the government is said to also eye export opportunities. Reportedly, social and environmental impact assessments will be undertaken before any development begins. Furthermore, the companies are committed to invest extensively in physical and social infrastructure and are expected to assist in the development of out-grower schemes involving smallholders."]
[2011,"June","MALAYSIA-INDONESIA - cooperation on palm oil: Reportedly, the two countries jointly engaged in new efforts to defend the interests of their oil palm industries. Among other initiatives, the creation of a European Palm Oil Council has been announced. On the EU Directive on the Promotion of the Use of Renewable Sources (RED), the two countries reportedly agreed to seek legal advice as to the directive’s consistency with WTO provisions. Concerns have also been voiced regarding the implications of a draft palm oil labelling bill that is under consideration in Australia (see MPPU May 2011 issue)."]
[2011,"June","UNITED KINGDOM - sustainable palm oil consumption: According to Proforest, an independent non-profit organization, the government of the United Kingdom is considering the introduction of specific policy interventions aimed at increasing the volume of sustainable palm oil consumed within the country’s supply chain. In a report commissioned by the government, Proforest maps the structure of UK supply chains and uses of palm oil at each stage and reviews potential policy options along with the likely costs and benefits of each.    "]
[2011,"June","Certified sustainable palm oil - sourcing policies: Global producer of household products SC Johnson has joined the list of companies committed to using exclusively palm oil originating from responsible and sustainable sources. The company expects to complete the transition to certified sustainable produce by 2015."]
[2011,"June","Certified sustainable palm oil - global trade: Sources close to RSPO pointed out that currently only about half of the available certified palm oil actually enters trade as segregated produce. Although more and more end-users are keen to buy segregated produce, the fragmented nature of the industry and a very complex palm oil supply chain are said to prevent buyers from finding the quantities required. Reportedly, at this point, most end-users are forced to resort to buying certificates to back up their claims of sustainable sourcing. The certificate trading scheme offsets end- users’ consumption against production of an equivalent amount of sustainable oil somewhere at source. Initially conceived as a stepping stone towards physically fully segregated supply chains, certificates could dominate trade in sustainable palm oil longer than originally envisaged."]
[2011,"June","Hybrid jatropha seed: A US bioenergy firm informed that it has developed high performing hybrid seed of jatropha. The material is said to offer consistently high yields, uniformity and vigour and to reduce seed handling and deployment costs. Reportedly, the company has signed contracts for the deployment of 100 000 ha using hybrid seed and plans to develop a global pipeline totalling close to 0.5 million ha of jatropha projects worldwide. Plans include the adaptation of seed material to the specific growing conditions of individual customers."]
[2011,"June","Biofuels and indirect land use changes: According to research conducted in the United States, the historic expansion of US biofuel production has in all probability not induced any indirect land use change. Allegedly, there have been no arable land increases, no damage to natural ecosystem lands and no significant crop expansion in foreign countries correlated to the past growth in US biofuels demand. These findings are in stark contrast to work carried out by other, public institutions on the likely impact of continued, future biofuel expansion."]
[2011,"June","Exemption from EU countervailing duties on biodiesel: A Canadian renewable energy company reported that it has been exempted from EU duties applying to biodiesel imports from North America. Reportedly, the exemption is a result of the company’s full compliance with the EU’s processes, including the submission of formal replies to questions and extensive collaboration with EU officials during a site visit."]
[2011,"June","Soybean expansion in vulnerable ecosystems: A new report published by WWF highlights the impact that the global expansion of soybean cultivation has on sensitive environments such as the Brazilian Savannah, or Cerrado. Soybean related land conversions are said to have contributed to habitat destruction and increased CO2 emission. Therefore, the report calls on farmers, traders, food companies and retailers to join multi-stakeholder schemes such as the Roundtable for Responsible Soy (RTRS), which sets strict environmental and social standards for soya production. RTRS sustainable certified soya is said to be available for the first time this year. "]
[2011,"August","ARGENTINA - soy export tax revenue: Taxes collected on soybean and derived product exports are estimated to amount to US$ 8 billion this year, up from 6.3 billion in 2010. Since mid 2008, soybean exports are subject to a 35% tax. The expected surge in revenues comes from the recent strength in international soybean prices.     "]
[2011,"August","AUSTRALIA - draft palm oil labelling bill: The Australian Senate will likely reject a draft bill about compulsory labelling of palm oil in food products (see also MPPU no. 25, May 2011). Doubts have arisen as to whether the issues surrounding palm oil presence in foods justify an amendment of the existing labelling laws. Also, divisions became evident between industry bodies, consumer organizations and conservation groups. Furthermore, legislators also pointed to progress being made in the adoption of specific labelling under existing voluntary arrangements.       "]
[2011,"August","CANADA – rapeseed marketing support: The Canola Council of Canada has been granted C$ 1.1 million under the government’s AgriMarketing Program. The funds will be used to implement long-term international strategies focusing on foreign market development and consumer awareness as well as branding to highlight health and quality characteristics."]
[2011,"August","CHINA - cooking oil inspections: Reportedly, to improve food safety, municipal health authorities in Beijing started conducting regular inspections of cooking oil used in restaurants. By verifying purchases and investigating supply channels the body aims to stop the use of illegal cooking oil."]
[2011,"August","CHINA - retail price cap on edible oil: According to industry sources, the price cap on sales of edible oil introduced towards the end of last year with a view to counter food price inflation is still in place. Originally, price ceilings were supposed to be lifted by June. However, in May and June 2011, consumer price inflation has risen, respectively, 5.5% and 6.4% compared to the corresponding months of 2010, thus remaining historically very high. Private sources expect the price caps to remain in place until mid August. Reportedly, the government decided to carry out an assessment of cooking oil stocks available in the country. Only if inventories were found to be sufficiently ample, price controls would be relaxed. Meanwhile, caught between retail price caps and rising crop prices, edible oil enterprises in Heilongjiang (the country’s main soybean production base) are reported to be working way below installed capacity."]
[2011,"August","CHINA - sales from state soybean reserves: According to latest estimates, during the 2010/11 marketing campaign, only 11-12 thousand tons of soybeans were sold out of the over 3.8 million tons kept in public storage – despite regularly held auctions. The poor result is attributed to unattractive floor prices as well as uncertainties among market participants about state trade policies and measures to direct domestic markets."]
[2011,"August","CHINA - edible oil storage capacity: Quoting the State Administration of Grain, national press reported that the state’s edible oil storage capacity has reached 14.08 million tons, which would correspond to about 40% of estimated annual domestic consumption. If fully utilized, such capacity allows government market intervention to prevent cooking oil prices from surging when food inflation rises.         "]
[2011,"August","CHINA - non-GMO soybean cultivation: The government is largely in favour of GM crop cultivation and has allowed the importation and domestic consumption of GM oilseeds and derived products. Domestic soybean cultivation, however, so far remained free from GM varieties, thereby preserving its characteristic higher protein content. Now, the country’s first officially GMO-free soybean growing area (measuring about 130 000 ha) has been established in Heilongjiang Province.       "]
[2011,"August","CHINA - biodiesel standard: Two national standards defining the quality of specific biodiesel blends have been issued in the last few years. Now a complete trade standard for biodiesel has been officially launched. It is expected to comprehensively regulate the country’s biodiesel industry. Production, distribution and sales of biodiesel will be regulated in detail. The standard includes mandatory waste treatment and by-product recycling. Reportedly, a biodiesel company that already produces according to the standard said that it expects better client confidence and increased sales. Currently, the country’s sales of biodiesel as transportation fuel are reported to be minimal due to small profit margins. So far, biodiesel use (B5 blends) is mandatory only in Hainan Province.       "]
[2011,"August","EUROPEAN UNION - biofuel sustainability certification: Starting this year, in order to count towards the EU's renewable energy targets, utilization of biofuel - whether of domestic or imported origin - requires proof of sustainable production methods. The first seven voluntary certification schemes have just been approved by the European Commission, namely (i) ISCC, a German government-funded scheme covering all types of biofuels; (ii) Bonsucro-EU, a scheme focused on sugarcane-based biofuels in Brazil; (iii) RTRS-EU-RED, an  initiative for soy-based biofuels in Argentina and Brazil; (iv) RSB-EU-RED, a scheme covering all forms of biofuels; (v) 2BSvs, a French industry initiative covering all types of biofuels; (vi) RSBA, a scheme developed by biofuel producer Abengoa to cover its supply chain; and (vii) a programme from biofuel producer Greenenergy covering sugar cane ethanol from Brazil. A number of civil society groups have questioned the schemes’ ability to objectively demonstrate sustainability in biofuel production."]
[2011,"August","EUROPEAN UNION - aviation biofuel initiative: A stakeholder group bringing together the European Commission, biofuel producers and airline companies has launched Biofuel Flightpath, an industry wide initiative aimed at speeding up the commercialization of renewable, sustainably produced aviation fuel in Europe. The stakeholders’ ultimate objective is to reduce air transport’s carbon footprint. The technical suitability of various biofuels for jet engines has been extensively tested. The European Commission sees the initiative as an opportunity to create the first industrial venture introducing biofuels for commercially competitive operations. Reportedly, group members have agreed to a target of 2 million tons of aviation biofuel produced and consumed annually by 2020. The fuel is expected to be produced in the EU from European sourced feedstock material.         "]
[2011,"August","INDIA - oilseed production support: The government has approved a 17.4% increase in the minimum support prices for kharif (summer) oilcrops: the new prices for yellow soybean and for groundnut are, respectively, Rp 16500/t and Rp 27000/t (which compares to Rp 14000/t and Rp 23000/t last year). Support prices, which are used to protect farm incomes in case market prices crash, are revised regularly to reflect rises in production costs. However, with this year’s unusually high increase, the government is also seeking to encourage oilseed production, thereby reducing the country’s large edible oil deficit. The support price for rice, where government stocks are currently reported to widely exceed target levels, has only been raised by about 8%. Local observers have expressed concern that the hike in support prices could push up food prices, thus adding to inflationary pressure.  "]
[2011,"August","INDONESIA - palm oil export tax: Following the recent drop in international quotations, the export tax on crude palm oil and its derivatives will be lowered to 15% in August, compared 20% applied in July. Reportedly, the government is also considering to lower the upper limit in the country’s progressive export taxation system to 20%, compared to 25% at present. The bottom rate of the sliding tax would remain unchanged at 1.5%. The reason provided for the proposed adjustment is that the levy failed to spur local processing of palm oil into downstream products as originally envisaged.     "]
[2011,"August","INDONESIA - ban on forest and peatland conversion: Since the nation-wide 2-year moratorium on forest clearing and peatland conversion has come into effect last May (see also MPPU no. 17, August 2010), expansion activities by Indonesian and Malaysian oil palm firms in Borneo Island seem to have come under greater scrutiny. In particular, a recently published list of exemptions to the moratorium has attracted the attention of environmental groups. In point of fact, those concessions and licenses that were granted before the new law became effective are exempted from the moratorium.     "]
[2011,"August","INDONESIA - palm oil certification: Mandatory certification according to the newly launched ISPO environmental standard (see also MPPU no. 20 & 26) is officially expected to start no later than August. Announced in November of last year, the initiative has been slow to take off. Reportedly, the government and the main stakeholders of the palm oil value chain still need to agree on the composition and operations of an ISPO commission and secretariat. However, a dozen independent auditors have already been officially appointed and given the green light to start the certification process. The auditing exercise is expected to require about 1-2 months per oil palm firm.    "]
[2011,"August","MALAYSIA/INDONESIA - oil palm plantation workers: In oil palm, harvesting remains predominantly manual and is difficult to mechanise. Over the last years, a chronic shortage of workers has developed in Malaysian oil palm plantations, where 80% of the labour force comes from abroad, mostly Indonesia. Reportedly, strict entry requirements and work permit rules together with better job opportunities in Indonesia have lead to a drop in foreign worker arrivals in Malaysia. Plantation companies report that the reduction in labour force has negatively affected productivity (and profit margins) as they are forces to increase the intervals between harvests. The lack of labourers also led to higher wages, thus pushing up production costs. In Indonesia, where oil palm continues to expand strongly, demand for labour is high and wages have become increasingly attractive. As a result, competition between the two countries to retain labour force has increased sharply in recent years."]
[2011,"August","MOZAMBIQUE - biodiesel policy: Private sources reported that the government passed into law a regulation mandating nationwide use of B3 blends by the year 2012. The development of a domestic biofuel market has been promoted since 2009 and a considerable number of biofuel projects have been established in the country during the last few years."]
[2011,"August","PAKISTAN - domestic marketing control: Investigations on the violation of competition principles have resulted in the government directing the national association of ghee and cooking oil manufacturers to refrain from all activities related to costing and pricing of commodities marketed by its members."]
[2011,"August","RUSSIAN FEDERATION/BELARUS /KAZAKHSTAN - import policy: The three-country customs union has decided to temporarily suspend its 5% soymeal import tariff during June and July 2011 as feed grain shortages have developed among member countries."]
[2011,"August","UKRAINE - export policy: Since 2000, the following export control measures have been introduced for sunflowerseed and its oil: seed exports have been taxed at rates ranging 11-23%, and both, seed and oil shipments were subject to temporary quotas. According to private sources, concerned about domestic supply shortages, rising prices and high inflation, soon the government will also introduce export duties on sunflower oil (10% or not less than € 90/t), rapeseed (11% or € 53/t) and soybeans (8% or € 30/t). By contrast, the existing export tax on sunflower seed could be lifted. For grains, new export duties have come into force last July."]
[2011,"August","UNITED ARAB EMIRATES - recycled vegetable oil: The government has entered a partnership with McDonald’s Restaurants to produce biodiesel based on recycled cooking oil. The country’s first licensed biodiesel plant will have an annual output capacity of one million litres. Used oil will be converted into 100% biodiesel on a one-to-one basis. McDonald’s committed to using the biodiesel in its logistic fleet to achieve a reduction in its carbon footprint.    "]
[2011,"August","UNITED STATES - support to camelina production: Domestic production of camelina sativa is expected to expand thanks to a new joint private-public program. The oilseed will be produced as feedstock for aviation fuel, biodiesel and speciality chemicals. Farmers participating in the program will receive production subsidies for up to five years. Reportedly, camelina-based jet fuel has been widely tested and could become the bio-based fuel of choice for both military and commercial customers. It meets the relevant, recently approved ASTM fuel specification."]
[2011,"August","UNITED STATES - climate change adaptation: The government started providing funds for research that will assist soybean (and maize) farmers to modify farming techniques that help dealing with climate change. To increase resilience against more variable and extreme climate patterns in the future research efforts will focus on creating conditions that enable rapid crop growth while also enhancing soil characteristics that enable soils to handle spikes in rainfall and temperature."]
[2011,"August","UNITED STATES - agricultural policy simulation: FAPRI Institute (University of Missouri), which provides financial analysis to the U.S. Congress on proposed policy changes, has conducted a study on the potential impact of eliminating direct support payments to farmers. Reportedly, while cutting the payments would reduce federal budget outlays under that programme, the measure will likely boost farmer participation in the public income safety net programme ACRE, thus offsetting much of the budget savings.                               "]
[2011,"August","VENEZUELA - producer support prices: In August 2011, a 30% increase in the farm gate prices set by the government for soybeans, rice and maize should come into effect."]
[2011,"August","Certified sustainable palm oil - Supply: Global production of RSPO certified palm oil is reported to grow rapidly. According to industry estimates, currently about 9% of global palm oil output is being certified. Reportedly, today about 5 million tons undergo certification – compared to only 1 million tons in 2009. Around 54% of all certified produce originates from Malaysia, followed by Indonesia with 35%. A big company that runs plantations in both Malaysia and Indonesia informed that its production of certified palm and palm kernel oil has reached 1.5 million tons and is set grow to 3 million tons by 2015."]
[2011,"August","Certified sustainable palm oil -  Industry sourcing: Cargill is committed to source 100% of the palm oil products it trades from RSPO certified sustainable sources by 2020. Currently, about 70% of the palm oil traded comes from certified sources. The company’s supplies to customers in Europe, the US, Canada, Australia and New Zealand will be fully certified already by 2015. This plan is supposed to help the company to meet the rising demand for sustainable produce amongst manufacturers and retailers. At the same time palm oil producers will be encouraged to adopt more sustainable practices. The company actively assists producers in the adoption of sustainable practices and specifically helps smallholders to understand the RSPO criteria. Reportedly, smallholders at a Cargill-owned plantation in Indonesia recently started selling certified palm oil at a premium. Other benefits reaped by the farmers are said to include increased crop productivity and enhanced operational efficiency."]
[2011,"August","Biofuel feedstock preferences: Global producer and supplier of certified sustainable biofuels Neste Oil reported the following shifts in its raw material procurement: crude palm oil now accounts for no more than 50% of total feedstock, while the proportion of waste animal fat and by-products form vegetable oil refining has grown to 40%. Furthermore, the feedstock base has been expanded by adding jatropha and camelina oil. The company also conducts research on soybean oil, waste fish oil, used cooking oil, tall oil and entirely new materials (such as algae) continues."]
[2011,"August","New functional oils -  Clear Valley 80 Canola Oil: A new high oleic rapeseed oil has been launched by Cargill. The oil is reported to deliver high nutritional and health benefits thanks to its low level of saturated fat and minimal presence of trans fat. High in oleic acid content, the oil features increased heat and oxidative stability without going through hydrogenation, fractionation and other complex processing, thus offering extended shelf life and the related cost advantages."]
[2011,"August","New functional oils: - Omega-9 Sunflower Oil: Dow AgroSciences has developed a new sunflower oil to address increasing customer demand for healthier products. Reportedly, the new product is free of saturated fat, has zero trans fat and is characterized by a high content of monounsaturated fats. Thanks to a high level of stability, formulations using the oil do not require antioxidants or partial hydrogenation and enjoy a high shelf life"]
[2011,"August","Conversion of palm oil mills: A number of palm oil processors in Malaysia and Indonesia engaged in efforts to convert their conventional mills into “green” ones via the full exploitation of waste products. The conversion includes the production (and commercial sales) of dry long fibre pellets and the breaking-up of palm oil mill effluent along with the corresponding energy extraction, which reduces waste treatment costs. The cost of converting a 60t FFB/hour mill is reported to amount to US$ 10 million, with an alleged payback period of only 3-4 years thanks to the associated cash returns."]
[2011,"August","Certified sustainable soy: Certification and trading of sustainable soy has been launched by RTRS, the Round Table on Responsible Soy Association. RTRS brings together stakeholders of the entire soy value chain, including several civil society organizations. Certification requires compliance with the following five principles: (i) good business practices and legal compliance; (ii) responsible labour conditions; (iii) responsible community relations; (iv) environmental responsibility; and (v) good agricultural practices. Producers in Brazil and Argentina have already applied for certification. To facilitate trade, RTRS also launched a certificate trading platform under which soybean producers receive rewards for delivery of certified produce. First purchases of soybean and soyoil certificates have been reported by Unilever Brazil and the Dutch feed and food industry. The Association expects to certify 0.5 million tons of soybean this year and double that amount during 2012.  Producers using RTRS certification also have the option to include a biofuel annex to the auditing process, which provides them access to the EU biofuel market, where RTRS certification enjoys official recognition."]
[2011,"August","Revised international aviation fuel standard: The globally recognized standards development and delivery organization ASTM International has revised its specification for aviation fuel to enhance blending with renewable fuels. Under the new provisions included in ASTM-D7566, up to 50% of bioderived synthetic blending components can be added to conventional jet fuel. These components, called hydroprocessed esters and fatty acids (HEFA), can be derived from vegetable oil-containing feedstock (such as jatropha, camelina and algae) or animal fats. Where the new standard is applied, blended jet fuel can be considered identical to conventional fuel and does not differ in performance and operability. The revision of the existing standard is the result of an industry-wide cooperative effort which reflects the aviation sector’s search for sustainable, environmentally friendly forms of operation that also enhance energy supply security and competitiveness.                  "]
[2011,"September","BRAZIL - GM soybean:  Private sources estimate the share of GMO soy in total soybean sowings to reach 83% in the forthcoming 2011/12 season. Compared to last season, the area planted with approved transgenic varieties is expected to rise by over 13%. Reportedly, the Centre-West growing states could, for the first time, surpass the Southern Region in terms of area allocated to GM soybean. The main traits present in the GM varieties used are herbicide tolerance and insect resistance.  "]
[2011,"September","CANADA - trans fat regulations:  In 2006, the country’s health authorities introduced measures aimed at reducing the level of trans fats in food products (without increasing the levels of saturated fats). A target level of maximum 2% of trans fat in the fat content of vegetable oils and spreadable margarines and of 5% in all other foods was set. The indication of the trans fat content in pre-packaged food was made mandatory, and the industry agreed to work toward voluntary limits in the trans fat content of food products. Should insufficient progress be noted in reaching the set targets, legislation for compulsory trans fat reduction was to be considered. Eventually, a report issued in late 2009 revealed limited progress in achieving the reduction targets. Reportedly, analyses are still underway to understand why the industry cannot meet the set objectives. Food companies are said to face a number of technical challenges preventing them from meeting the targets.     "]
[2011,"September","CHINA - state soybean reserves: Government efforts to release soybean onto the market are set to continue. Reportedly, auctions from state reserves amounting to 4 million tons are planned, with a view to prevent price rises before the expected seasonal peaks in demand. The auction starting price could be set at RMB 3,500 per ton. Past auctions at the same price level have produced only limited sales.  "]
[2011,"September","EUROPEAN UNION - energy tax: According to industry sources, the proposed changes to the EU energy taxation directive (see MPPU no. 25, May 2011) would be beneficial for the renewable energy sector. Reportedly, the proposed revision would end the current, contradictory discrimination of renewable fuels because (i) biofuels have a lower energy density than fossil fuels, and (ii) bioenergy is generally acknowledged to be carbon dioxide free at the end use. Furthermore, under the proposal, the taxation of diesel and petrol would be fully aligned, which should put an end to past distortions that tended to favour diesel as a transport fuel."]
[2011,"September","INDIA - government imports of edible oil:  Reportedly, the government intends to extend its edible oils import programme for public distribution at subsidized prices, which is due to expire in September 2011, until September 2012. Up to 1 million tons would be imported and distributed by state-run trading agencies. Private sources estimate that the subsidized sales to poor households since 2008 have contributed to the rise in overall domestic consumption in recent years."]
[2011,"September","INDIA - hybrid jatropha for biodiesel production:  Reportedly, the private sector has launched a crop development programme involving molecular breeding and biotechnology to produce high-yielding varieties adapted to the country’s specific agronomic conditions. Eventually, the initiative envisages the deployment of 35,000 ha with high-performing jatropha hybrids. Since 2009, India has a national policy on biofuels that aims at an ambitious 20% diesel blending rate. The government called for the use of wasteland to cultivate non-edible oilcrops such as jatropha. It has set biodiesel procurement prices, which however are reported not to be remunerative enough for the industry to grow. No form of financial assistance is provided to the growers or processors."]
[2011,"September","INDONESIA - palm oil export tax - September tax rate: With international palm oil prices about unchanged in August, the export tax on crude palm oil will remain at 15% during September."]
[2011,"September","INDONESIA - palm oil export tax -  Modified taxation scheme: A modified palm oil taxation system is going to come into effect in October. While progressive taxation based on world market prices is going to remain in place, the min./max. tax range will be narrowed to 7.5-22.5 percent for crude palm oil and 7.5-13 for refined oil – compared to the current, common band of 1.5-25 percent. Furthermore, in addition to quotations in Rotterdam, prices form commodity exchanges in Malaysia and Indonesia will be used to calculate the international reference price. But the key change is the preferential treatment - i.e. lower tax cap - accorded to refined oil relative to crude oil exports, which, according to market observes, denotes renewed efforts by the government to promote domestic processing and value addition in palm oil. In fact, trade data reveal a drop, over recent years, in the share of refined oil palm products in total shipments (to less than 50%). Assuming Indonesia’s future shipments of processed palm oil rise as a result of the new tax rates, competing exporters (in particular Malaysia) as well as buyers of Indonesian oil palm products could be adversely affected. Malaysia, where refined product shipments account for over 80% of total exports, could be exposed to increased competition considering that Indonesian refiners enjoy significantly lower production costs. Therefore, Malaysia may consider introducing new measures to support its own processing sector. On the other hand, importing countries, in particular those that have expanded their own refining capacities and thus prefer to buy crude palm oil, could experience a partial shift from crude to (more attractively priced) processed palm oil imports from Indonesia. In particular India, which is Indonesia’s main customer for palm oil, could be affected - also because, protecting its own refining industry via higher import duties might not be an option when the country is faced with inflationary pressure."]
[2011,"September","MALAYSIA - smallholder support: Reportedly, the government decided to allocate, through the country’s Palm Oil Board, RM 7,000 per ha to small farmers for them to participate in the replanting and new planting of oil palms and thus contribute to the expansion of domestic production. The programme is targeted at some 300,000 smallholders that cultivate about 650,000 ha of land.       "]
[2011,"September","PARAGUAY - export taxation proposal:  Reportedly, the country’s Senate is considering a bill to tax the exportation of soybeans (as well as of maize and sunflower seed). An ad valorem duty of  6% is being proposed to raise the  agricultural sector’s contribution to the state budget and thus public expenditure. Soy production has expanded sharply in recent years, turning the country into the world’s fourth-biggest supplier (as about 70% of domestic production going into export). Allegedly, the sector’s growth has played a prominent role in the country’s recent overall economic expansion – without a commensurate fiscal contribution.         "]
[2011,"September","PHILIPPINES - coconut export growth: The country’s exports of coconut products have been consistently rising over the last few years. According to industry sources, growth was concentrated in markets where the country enjoys free trade agreements (FTAs). Apparently, exporters have taken advantage of preferential agreements negotiated with selected countries. Reportedly, the reduction or gradual elimination of tariffs has improved marked access in Indonesia, Malaysia and Thailand. In 2010, three-fourths of Philippine coconut export revenues are said to have come from markets covered by FTAs, namely the ASEAN bloc, China, the Rep. of Korea, Japan, Australia and New Zealand. "]
[2011,"September","UNITED STATES - biodiesel production - Domestic output: According to industry estimates, 2011 domestic  biodiesel production should reach at least 750 million gallons, which compares to a mandatory consumption level of 800 million gallons. The anticipated recovery in production from last year (315 million gallons) comes following the reinstatement of the biodiesel tax credit earlier this year. According to private sources, EPA recently tabled a proposal that increases mandatory use for next year from the currently agreed level of 1.0 billion to 1.25 billion gallons. The country’s total installed production capacity is estimated at close to 3 billion gallons. The federal tax credit is scheduled to expire in December this year. Reportedly, a draft bill for extending the incentive for three more years has already been tabled."]
[2011,"September","UNITED STATES - biodiesel production -  Energy balance: According to new research conducted with USDA participation, the energy balance (or fossil energy ratio) of biodiesel is 5.5, i.e. for every unit of fossil energy required to produce biodiesel (from soybean oil), the return is 5.5 units of renewable energy. Reportedly, the ratio has improved compared to a few years back, allegedly because (i) soybean farmers have increasingly adopted energy-saving practices such as zero tillage, (ii) yield levels have increased, and (iii) soy crushing plants and biodiesel production units have become more energy efficient.     "]
[2011,"September","Specialty oilseed crop - high erucic acid rapeseed (HEAR):  Following several years of trial work, full-scale commercial production of HEAR is expected to start in the 2011/12 season in North Carolina, United States. As a high-value specialty crop, HEAR has a particular fatty acid composition which makes it suitable for multiple end-use applications, especially non-food industrial uses. HEAR will be grown under contract only, with two private enterprises providing the seed and agronomic advisory services, purchasing the entire crop, and taking care of storage and processing. HEAR is a winter crop and is said to offer advantages with regard to  crop rotation."]
[2011,"September","Certified sustainable palm oil - RSPO certification: Three years after its launch, RSPO certification is now reported to involve a production area of 1 million ha word-wide, concerning close to 5 million tons of palm oil or about 10% of global output. The 1 million ha mark has been reached through the certification of the supply base and mills of a major Brazilian producer, supposedly demonstrating the feasibility of oil palm cultivation in the Brazilian Amazon region - in a manner compatible with sound environmental and social standards."]
[2011,"September","Certified sustainable palm oil - national certification scheme: Following the footsteps of Indonesia, the Malaysian government reportedly started planning a national certification scheme - independent from voluntary RSPO certification (which is currently used by producers to certify about 17% of domestic output). Reportedly, the government does not fully support the RSPO scheme which is said to be subject to revisions and not to provide the type of service the market requires. Under the planned national system, buyers will be offered direct, physical access to certified palm oil, with due attention to all the concerns raised by the trade. Furthermore, small producers would not face any disadvantages in obtaining certification. \n"]
[2011,"September","Soybean seed development:  Five of the world’s leading international seed breeding companies are said to be working on a range of far-reaching varietal improvements for soybeans that are expected to reach the commercialization stage during the present decade. Reportedly, various new varieties with multiple traits are being developed via genetic modification, to combine herbicide resistance, disease tolerance and special fatty-acid composition.    "]
[2011,"September","Certified sustainable soy: Global crop processing and trading company ADM reported to have obtained ISCC certification for soy grown in South America and destined for the EU biodiesel market. ISCC (International Sustainability and Carbon Certification) fully meets EU-RED requirements. ADM informed that although its initiative is driven by the biofuels market, the company also anticipates a growing need for sustainable soy in the food and feed markets."]
[2011,"September","Reducing trans fats in bakery goods: According to research conducted in India, it is possible to replace hydrogenated fat (rich in trans fatty acid) in bakery products with sunflower and coconut oil: when other ingredients such as emulsifiers and hydrocolloids are added, the quality characteristics typically imparted by shortenings will not be lost, while the content of polyunsaturated fat will also rise significantly."]
[2011,"October","AUSTRALIA - draft palm oil labelling bill (see also MPPU no. 25&27, May& Aug. 2011): Reportedly, although the concerned Parliament committee recommended not to pass the draft bill on labelling standards for food products that contain palm oil, the Senate opted to go ahead, submitting the bill to the House of Representatives. Meanwhile the bill has also been expanded to apply to any food as well as non-food product containing palm oil or its sub-products. Malaysia’s industry (which provides virtually all of Australia’s palm oil) responded with a second appeal to the Parliament explaining that the draft law was based on misleading claims and the bill presented an indirect trade barrier violating international trade rules.      "]
[2011,"October","BRAZIL - domestic soybean transportation: Future expansion of soybean cultivation in the state of Mato Grosso, the country’s leading growth area, will strongly depend on the ability to reduce transportation costs (and on continued conversion of pasture land combined with greater use of feedlots). Estimated at around USD 110-120 per tonne, the current cost of shipping soybeans - mostly by road - from Mato Grosso to the major ports located in the South of the country accounts for up to 25% of the product’s value, compared to less than 10 % on average in the United States. That burden can only be reduced by improving the country’s waterways and railroad network. In this regard, the Ferronorte railroad project is expected to bring about major gains as it will link Cuiabà, Mato Grosso’s capital, to the southern state of São Paulo. Under construction since 1992, the railway is expected to reach Rondonópolis (200 km before Cuiabà) in 2012. For the medium and longer term, further extensions towards the North and Northwest are also planned so as to link Mato Grosso to ports located in the Amazon River bay.             "]
[2011,"October","CHINA - state soybean reserves: Private sources expect major sales of soybeans from state reserves over the next few months as the government is keen to free storage space for bean purchases from the new crop and for expanding edible oil reserves. Public soybean reserves are unofficially estimated to have swollen to close to 5 million tonnes. Reportedly, to stimulate purchases, processors will be offered subsidies to crush soybeans, with the oil going back into state reserves, while the meal will be sold on the market."]
[2011,"October","EUROPEAN UNION - sustainable biofuel production: Earlier expected for end 2011, the release by the European Commission of guidelines on the influence of indirect land use changes (ILUC) on carbon savings in biofuel production and utilization seems to have been postponed by 6 or 7 more years because scientific uncertainties persist. The ILUC concept attempts to measure the effects of local production of a particular biofuel feedstock on global food crop production and GHG emission levels. Reportedly, the idea is to delay feedstock specific rules on ILUC in favour of an indirect approach that will affect all biofuel crops equally, namely an increase in the emission savings threshold that all biofuels must meet in order to count towards the bloc’s bioenergy targets (thereby gaining access to various preferential treatments). Originally set at 35% (emission savings compared to fossil fuel) from 2013 and 50% after 2017, the 2013 threshold could be revised upward to 45-50%. While providing some relief to the EU biofuel industry, the new policy would be meant to help phase out the worst performing biofuels and prevent further investments in biofuel production systems with low levels of sustainability."]
[2011,"October","EUROPEAN UNION - olive oil storage aid: Olive oil prices in the EU have dropped below the threshold that triggers support payments for private storage. Hence, the Commission decided to grant assistance for a total of 100 000 tonnes, with storage time limited to six months. The measures is meant to help the sector address short term marketing problems, without affecting the market at the start of the new (2012/13) season."]
[2011,"October","INDIA - import duty on refined palm oil: In response to Indonesia’s restructured export tax (which is expected to boost the nation’s shipment of refined oil possibly making it unprofitable for importing countries to buy crude palm oil for local processing), India’s processing industry is urging policy makers to raise the country’s import duty on refined palm oil from currently 7.5% to at least 15%. At present, close to 80% of the country’s edible oil requirements are covered by imports of crude palm oil, which subsequently gets refined locally. However, at the current tariff levels and with reduced prices for processed products coming from Indonesia, India’s imports of refined palm oil are likely to rise sharply, thus hurting the country’s refining industry. Already, the country’s annual refining capacity is currently estimated to be utilized to only 60%. Reportedly, the country’s Food Ministry is backing the industry’s request and has taken up the matter with the Finance Ministry."]
[2011,"October","INDIA - oilmeal export policy: In the past, the domestic market for animal feed offered limited opportunities for local producers of oilmeal. As a result, export opportunities were explored and recently the country succeeded in becoming a reliable and competitive supplier of oilmeals to the Asian market. Temporary policy measures introduced to facilitate meal exportation contributed to this development. Now foreign sales have risen to a point where, concerned about shortages on the domestic feed market, the country’s dairy and poultry industry is calling for policy measures to check exports of locally produced oilmeals. Although the country’s Food Ministry seems to rule out industry calls for a ban on oilmeal exports, it is said to support a proposal to double the export tax on oilmeals, which currently stands at 10%.   "]
[2011,"October","INDIA - overseas farm land acquisition: According to unofficial sources the government is working on policies that will allow Indian agribusiness companies to buy land abroad for growing various crops, including oil palm. Reportedly, large tracts of uncultivated land, especially in Latin America and Africa, could be earmarked. Given India’s rising population and related food security concerns, policy makers are looking into means to encourage outsourcing of domestic food production, recognizing that, in the longer term, securing food supplies alone via the introduction - at national level - of yield improving technologies and better irrigation facilities could prove challenging. Also the vulnerability of domestic agriculture to adverse weather conditions seems to be of concern.          "]
[2011,"October","INDONESIA - palm oil export tax: After its recent decision to modify the upper and lower limits for the export duty on crude and refined palm oil (driven by the objective to stimulate shipments of processed products), the government has decided to adjust the actual level of the tax for processed palm oil from 15% to 8%, while increasing the rate for crude oil from 15% to 16.5% - a tax structure that clearly favours shipments of refined products. The new rates will come into effect on 1st October."]
[2011,"October","INDONESIA / PAKISTAN - palm oil trade: The recently signed preferential trade agreement between the two countries is expected to restore Pakistan’s imports of Indonesian palm oil to their traditional level. Over the last few years, purchases from Indonesia had shrunk in favour of imports from Malaysia, which in November 2007 sealed a free trade agreement with Pakistan. Under the new trade pact, Pakistan will cut its import duty on Indonesian crude and refined palm oil by 15%, thus granting the same treatment it applies to imports from Malaysia. The new agreement will come into force next January, after more than six years of negotiation. Reportedly, until 2007, Pakistan sourced 55% of its palm oil imports from Indonesia.  "]
[2011,"October","MALAYSIA - oil palm seed cost: Reportedly, the private industry is set to increase the price for germinated seed by 30% from January next year. Behind the rise are (i) heavy investments in past years into breeding for higher yields and (ii) rising production costs, due in particular to increases in minimum labour wages and foreign worker levies as well as higher fertilizer costs and electricity tariffs affecting production costs in plantations and processing plants."]
[2011,"October","MALAYSIA - possible assistance to palm oil refiners: Indonesia’s recent restructuring of palm oil export taxes was bound to affects its main competitor in the export market, Malaysia. The country, which over the years succeeded in exporting most of its palm oil in refined form, is destined to see profits in the production and exportation of refined produce falling as a result of Indonesia’s tax adjustment. Experts estimated the new price advantage enjoyed by Indonesian competitors at USD 70 to 130 per tonne of refined palm oil. As under current conditions reducing costs by such amounts may well be unattainable for Malaysian refiners, the government seems to be under pressure to consider measures to support the industry. Industry experts listed the following options for possible government intervention, all aimed either at increasing  domestic palm oil supplies or at lowering the domestic price for crude palm oil: (i) the gradual reduction (or abolition) of the existing tax-free export quota for crude palm oil; (ii) the reduction (or removal) of windfall taxes that were imposed on oil palm plantations in a period of rising profits; (iii) the introduction of tax rebates for the downstream industry; and (iv) setting domestic price ceilings for crude palm oil.  "]
[2011,"October","MALAYSIA - conversion of palm oil mills (see also MPPU no. 27, Aug. 2011): In Malaysia, the notion of converting  conventional mills into “green” ones via the full exploitation of waste products will be the objective of a newly formed public-private partnership (between Sime Darby Foundation and Universiti Kebangsaan). The aim is to turn the waste products of the milling process (estimated at more than 80 million tonnes of biomass per year at country level) into bio-fertilizer, animal feed and bio-fuel for commercial use."]
[2011,"October","UNITED STATES - rapeseed oil-based biofuel: After determining last year that  rapeseed oil-biodiesel meets the country’s requirements for biomass-based diesel, the EPA has officially approved the use of Canadian rapeseed oil in US biodiesel production and consumption. The decision opens the US market to imports of biofuel feedstock or biofuel from Canada. "]
[2011,"October","UNITED STATES / EUROPEAN UNION - GHG footprint of soyoil-based biodiesel: Reportedly, the US soy industry requested the European Commission to set the emission reduction value for soybean-based biodiesel produced in the United States at 58% (relative to fossil fuel) as opposed to the default value of 31% currently applied to all soy-biodiesel consumed in the EU. The industry claims that the EU’s lower value is based solely on Brazilian production and utilization data and therefore should not be used for biofuel produced in the US. The value is important because from 2013 the minimum emission saving required for all biodiesel consumed in the EU will be 35% (in order to count towards the EU’s renewable energy targets). Although EU biodiesel consumption relies strongly on EU-grown rapeseed, the bloc also consumes biodiesel derived from oilseeds grown overseas, such as soybean produced in the US, Brazil and Argentina. "]
[2011,"December","BELARUS – export restrictions: Reportedly, in order to prevent the development of domestic shortages after a poor domestic oilcrop harvest, the government has decided to ban exports of rapeseed and rapeseed oil from September 2011 to March 2012."]
[2011,"December","BRAZIL – soybean moratorium: Launched in 2006, the voluntary moratorium on trading and financing of soybeans grown on land illegally cleared in the Amazon region has been extended for another year until January 2013. Triggered by consumer concerns, the private sector initiative, which is backed by the government as well as civil society groups, is said to have contributed to a slowdown in deforestation. The governance programme includes extensive land mapping and control schemes and actively supports land regularization efforts. Concerned about consumer demand for sustainably grown soy, European customers of Brazilian soybean fully recognize the commitments made under the moratorium. Brazilian stakeholders are determined to strengthen their commitment further and want to create a permanent governance basis so as to provide the market with a guarantee that its demand for zero deforestation in the commodity chain is met. "]
[2011,"December","CANADA – oilseed crop development: A private company has been granted public funding to advance the sustainable production of camelina and safflower-based oils to be used as renewable feedstock in a variety of high-value industrial applications other than fuel."]
[2011,"December","CANADA – rapeseed oil export for biodiesel production: The United States’ recent approval of Canadian rapeseed oil as feedstock for the production of biodiesel sold in the US is expected to significantly expand opportunities for Canadian exports to the United States. According to estimates by the Canadian rapeseed industry, sales of rapeseed destined for biodiesel production could be worth up to Can$ 450 million per year (a value corresponding to between 0.7 and 1 mill tons of rapeseed, depending on the market price). "]
[2011,"December","CHINA – overseas soybean investment: Reportedly, one of the county’s largest state-owned grain companies is making a major investment in soybean crushing in Bahia, Brazil. The first initiative of its kind, the project is said to create the largest Chinese overseas production base for cooking oil, which will be destined for both sales on the Brazilian market and shipping to China. The company, which currently imports soybean from Brazil, expects its requirements to expand strongly. Reportedly, in the medium term, the company is also planning to invest in soybean growing, soybean oil refining, biodiesel production and soy lecithin manufacturing in Brazil."]
[2011,"December","CHINA – public stock policies, state purchases: After large public sales effected during the 2010/11 season to combat domestic food price inflation, new purchases of soybeans to reconstitute public reserves are expected to commence in November. Restocking, which will involve both imports and local purchases, is done with a view to protect domestic markets from possible price surges in 2012. Reportedly, first overseas purchases have been made. As to local purchases, which will last until April 2012, the price has been set at 4000 Yuan/t – or 5% higher than in the last three seasons – with the intention shore up farm gate prices and support farmers’ incomes. However, with market prices currently reported at Yuan 4100/t, domestic sourcing could prove difficult. Market observers also noted that, at the government’s current floor price, preventing farmers from reducing soybean plantings further next year may prove difficult."]
[2011,"December","CHINA – public stock policies, state sales: Reportedly, limited amounts of rapeseed and soybean from state reserves have been offered to the market in November."]
[2011,"December","EUROPEAN UNION – GM approval: Reportedly, EU member states failed to agree on a proposal by the European Commission to approve two genetically modified soybean varieties destined for food and feed use (i.e. not for cultivation). The two products were previously declared as safe for humans, animals and the environment by the EU’s Food Safety Agency. Now the proposal needs to be submitted to a newly created appeal committee. The impasse is likely to frustrate the bloc’s feed industry and soy importers and risks creating potential friction with trade partners such as Argentina where grain production relies heavily on transgenic seeds."]
[2011,"December","EUROPEAN UNION – biofuel policy and industry concerns, EU policy on ILUC: Although the European Commission committed to improve EU biofuel policy by introducing guidelines on the influence of indirect land use changes (ILUC) on carbon savings, the release of new rules has been postponed repeatedly because of persisting scientific uncertainties. The ILUC concept attempts to measure the effects of local production of a particular biofuel feedstock on global land use and GHG emission levels as well as on the production and prices of basic foods. On this matter, a group of scientists and economists urged EU policy makers to formally recognize that biofuel production can have indirect impacts on land-use, and called for the resulting emissions to be taken into account fully when assessing which biofuels help in the fight against global warming. The petition states that without addressing ILUC, the EU’s targets for renewable energy in transport may fail to develop genuine carbon savings in the real world; ignoring ILUC in the bloc’s policies could in fact cause increases in GHG emissions rather than reductions. Attention was drawn to numerous studies indicating that emissions related to biofuels expansion are significant and can be quite large – possibly exceeding those related to conventional fuel. While the discussion centres on environmental gains and social justice, also the fate of the EU’s biofuel industry seems to be at stake, notably that of biodiesel producers. Observers point out that a policy which ignores ILUC effects leaves the industry in a turmoil and doesn’t allow biofuel producers to plan properly for the future. Interestingly, EU bioethanol producers are reported to have come out in support of accounting for ILUC, because, allegedly, bioethanol stands to gain an advantage over biodiesel when land-use impacts are factored in. In the meantime, the bloc’s biodiesel industry has produced studies claiming that the impact of ILUC has been greatly overestimated."]
[2011,"December","EUROPEAN UNION – biofuel policy and industry concerns, EU biodiesel production and trade: Total biodiesel output is estimated at 9-10 mill tons this year, implying that expansion in production has come to a halt and that no more than 40-45% of the EU’s installed production capacity is being used. The low utilization rates could force part of the industry to close down. Apparently, the sector’s weak performance is not the result of falling demand for biodiesel. Rather, with prices for rapeseed oil (the main feedstock) rising markedly, domestic biodiesel production has became less profitable and more exposed to import competition. Importing of soyoil and palmoil-based biodiesel has become increasingly attractive. For the current year, those imports have been tentatively estimated at 2.5 mill tons, 21% higher than in 2010. Main origins are Argentina, Indonesia and Singapore. The EU biodiesel industry claims that part of these imports involve dumping and therefore decided to call on the EU Commission to investigate on the issue. In recent, similar cases the EU decided to impose anti-dumping duties.                                 "]
[2011,"December","INDIA – oilcrop production support, rapeseed support price: The government has raised the 2011/12 minimum support price for rapeseed by 35% to Rp 25 000/t, stating that recent rises in production costs warranted such upward adjustment. The rise is also meant to encourage farmers to expand plantings, and thereby contribute to reducing the country’s edible oil deficit. Recent planting increases in the current rabi rapeseed crop are attributed to both record market prices and the lift in support prices."]
[2011,"December","INDIA – oilcrop production support, olive cultivation: Reportedly, the government is planning to promote olive cultivation in Punjab and Azad Kashmir with a view to raise olive oil production, thereby helping to reduce the country’s dependence on edible oil imports. Awareness and training programmes will be conducted to attract potential growers. "]
[2011,"December","INDIA – palm oil import policy: As anticipated, the recent change in Indonesia’s export duty structure for palm oil and derived products represents a major threat to India’s vegetable oil refining industry (see also MPPU no. 28 & 29). After initial calls to lift the country’s import duty on refined oils (so as to stem the inflow of refined palm oil from Indonesia), the industry is now asking for an upward revision in the base prices on which import taxes are calculated. So far the government has not yielded to the industry’s request, supposedly out of concern that the proposed measures could propel domestic food price inflation upward. Market observers are warning that, eventually, the country could find itself faced with both higher landed costs for refined palm oil and rising international prices for crude palm oil. In any case, protecting the domestic refining industry may prove difficult in the long run: the sector is said to suffer from inefficiencies and poor infrastructure, which weakens its position vis-à-vis international competitors. According to the latest media reports, the Indian government is determined to seek a reduction in Indonesia’s export tax on crude palm oil, possibly in lieu of low-cost supplies of Indian rice to Indonesia."]
[2011,"December","INDIA – edible oil export: Reportedly, exportation of limited quantities of edible oil will be allowed under a long term government-to-government deal with neighbouring country Bhutan. In India, edible oil exports are banned since 2008 (with the exception of consumer packs of up to 5 kg, subject to a quantitative ceiling of 10 000 tons per year) with a view to keep a lid on domestic oil prices."]
[2011,"December","INDIA – biodiesel policies and industry concerns: The government biofuel policy issued in 2009 has come in for criticism by the country’s biodiesel industry. The Biodiesel Association of India reported that much of the country’s biodiesel production capacity is lying idle, and is blaming red tape, complicated taxing, insufficient incentives and concessions and, most importantly, the lack of a concrete roadmap on how to enhance step-by-step the production, marketing and consumption of biodiesel over the coming years. The government-set target of 58 mill tons biodiesel output and 20% mandatory admixture by 2017 is seen as totally unrealistic. Reportedly, the currently installed annual capacity – estimated at merely 1.2 mill tons for the whole country – would be sufficient to manage at best 3% blending. Meanwhile, the industry claims that it would be able to sell biodiesel without need of subsidies – as opposed to conventional diesel, whose sales are heavily subsidized. From a cultivation perspective, underutilized land is said to offer ample opportunities for growing a variety of bio-energy crops.  "]
[2011,"December","INDONESIA - palm oil export policies, export tax: Based on a decrease in international palm oil quotations, the country’s export tax on crude palm oil has been lowered from 16.5% in October to 15% in November. The export tax on refined palm oil was also lowered. During December, the export tax rates will remain unchanged."]
[2011,"December","INDONESIA - palm oil export policies, concerns of oil palm growers: Reportedly, oil palm planters and smallholders used to ship crude palm oil are complaining that the government’s recent export tax restructuring is forcing them to pay more for their exports than processors who export refined oil. Such situation is said to lower the incentive for smallholders to replant and improve productivity levels. In addition, the higher crude oil export tax may also encourage smuggling."]
[2011,"December","INDONESIA – biodiesel exports: The country’s exports of palm oil-based biodiesel (mainly to the European Union) are reported to be on the rise. After a slow start in the mid 2000s, since 2008 shipments (most of which are bound to the EU) have gone through a four-fold increase and are estimated at 700-750 thousand tons this calendar year by private sources. The estimate implies that about three quarters of domestic production are exported – a development that reflects the government’s policy to set export taxes for palm oil-based fuel at a lower rate than crude palm oil. In the recent tax structure change, the tax on biodiesel has been capped at 7.5 %. In addition biodiesel exports are reported to enjoy a tax-free threshold.        "]
[2011,"December","JORDAN – olive oil marketing and trade: The government assured farmers that it will continue to provide assistance in the marketing of the country’s olive oil crop. Reportedly, the market is faced with temporary surpluses that push domestic prices below production costs. Intervention measures will include public purchases and distribution initiatives, a temporary import ban and exceptional export permits. Pointing at chronic marketing problems and market imperfections, industry representatives have called for a permanent ban on olive oil imports and tighter export controls."]
[2011,"December","KAZAKHASTAN – export restrictions: To prevent domestic shortages and improve the country’s food security situation, the government decided to ban exports of vegetable oil from September 2011 to January 2012. ST & REUTERS 13.10"]
[2011,"December","MALAYSIA/INDONESIA – palm oil policies: The recent change in Indonesia’s export duty structure for palm oil and derived products potentially reduces the competitiveness of refined palm oil production and export in Malaysia (see also MPPU no. 28 & 29). The country’s refining industry is concerned about both a possible build-up in stocks of refined oil as well as growing difficulties in sourcing sufficient amounts of crude palm oil (CPO). With the country’s refined palm oil becoming more expensive compared to Indonesia, Malaysian exporters could lose market share, especially in price-sensitive countries like China and India. To address these concerns, officials from the two countries are engaged in talks, focusing on review of their respective export policy measures. Joint measures that will benefit downstream palm oil processing industries in both countries are expected to be announced before year-end. Recent official sources confirmed that the two countries agreed to review their respective tax structures. Options examined include a revision of Indonesia’s export duties on refined palm oil and a reduction in both countries’ high CPO export tax. Considering that Malaysia also imports crude oil from Indonesia (as domestic refining capacity has grown beyond the country’s own output) a duty-free quota on Indonesian-origin CPO bound for Malaysia might also be considered. Apparently, the two countries are determined to come up with mutually beneficial solutions and strategies.  "]
[2011,"December","MALAYSIA – biodiesel programme: Launched in June of this year, mandatory sales of B5 biodiesel in the three central states of Peninsular Malaysia are reported to proceed as planned. A total of 890 000 tons of is expected to be required to satisfy demand (based on an estimated annual diesel consumption of 2.49 billion litres). The programme relies on public subsidies to the tune of RM 106 mill per year. The subsidy is required to maintain the price of biodiesel at RM 1.80 per litre, the same as regular diesel. At present, the subsidy provided per litre amounts to RM 0.0426. Nationwide introduction of B5 is scheduled for early 2013. "]
[2011,"December","NETHERLANDS – refining industry affected by Indonesian export policy: After India and Malaysia, the Netherlands has voiced concerns about adverse effects Indonesia’s revised palm oil export policy is having on the Dutch vegetable oil refining industry. Recent trade reports suggest that Indonesia’s new export tax structure has conferred global trade in refined palm oil with an edge over crude oil – thus leading to significantly lower margins for refiners in traditional crude palm oil importing countries. The Netherlands, one of the EU’s main import hubs, offer home to massive processing plants owned by domestic and foreign investors. Indonesia could be exposed to growing criticism for using tools like export taxes, which potentially affect palm oil businesses worldwide.            "]
[2011,"December","PHILIPPINES – coconut sector development: PCA, the government agency tasked with the promotion and development of the nation's coconut sector, is set to step up its efforts with respect to the replanting of senile coconut palms on smallholder farms. The agency’s replanting budget for 2012 has been raised to Ps 512 mill from Ps 60 mill this year. Reportedly, promising market prospects for non-traditional coconut products such as coconut water have greatly improved the sector’s prospect for growth. "]
[2011,"December","UKRAINE – export policies, new export tax proposal: Reportedly, the government decided to drop its plan to introduce taxation on sunflower oil, rapeseed and soybean exports. In particular the country’s export oriented sunflowerseed refining industry would have been adversely affected by the proposed tax."]
[2011,"December","UKRAINE – export policies, bilateral free trade agreement with the European Union: Official sources reported that negotiators have reached the following agreement regarding Ukraine’s sunflower seed export policy: the country will be allowed to tax EU bound seed exports for a period of 15 years at a rate equivalent to the currently applied export duty. The duty is going to be phased out over 10 years and replaced by a fee (or tax) that compensates the gradual reduction in the duty. The agreement is expected to maintain intact the protection provided to the country’s seed processors and oil exporters.       "]
[2011,"December","UNITED STATES – GMO labelling: A national consumer advocacy organization has filed a formal petition with the U.S. Food and Drug Administration (FDA) seeking mandatory labelling of all foods containing genetically modified ingredients. In the past, FDA’s stance has been that labelling is not required because GM products proved to be safe and substantially equivalent to conventional ones – a position shared by the biotech industry. The new petition requires a formal response from FDA and could be followed by the filing of a lawsuit. Reportedly, the share of processed food on American grocery store shelves containing GM ingredients amounts to circa 60%.     "]
[2011,"December","UNITED STATES – biofuel policy issues, external policy evaluation: The US Congress had requested the National Academies of Science to undertake a study on the potential economic and environmental effects of the country’s current biofuel policy, as laid down in the Renewable Fuels Standard (RFS). The recently published findings cast serious doubt about the effects of the policies in place: it is considered unlikely that the United States will meet some specific biofuel mandates specified in the RFS by 2022 unless innovative technologies are developed or policies change. The report also states that the RFS may be an ineffective policy for reducing global GHG emissions. Furthermore, achieving the standard would likely increase federal budget outlays and have mixed economic and environmental effects. The report has triggered mixed reactions from the domestic biofuel sector. Scepticism prevailed at the Renewable Fuels Association, which recommended extreme caution in interpreting the study’s findings. By contrast, the National Biodiesel Board was pleased to see the study classify biodiesel as an ‘advanced biofuel’ that can meet the biomass-based diesel targets set under RFS. The Board welcomed the study’s recognition of several environmental and economic benefits from biodiesel, but also agreed that biofuels must be produced in a fully sustainable manner. "]
[2011,"December","UNITED STATES – biofuel policy issues, government support: Reportedly, USDA announced that it will grant US$ 44.6 mill to some 150 biofuel producers in the US to help support their production and product development efforts. The subsidy will be allocated based on the amount of biofuel a company produces from renewable biomass."]
[2011,"December","UNITED STATES – commodity futures trading: The U.S. Commodity Futures Trading Commission decided to restrict, starting next January, the volume of future contracts that financial investors can trade. The curbs are aimed at investment firms and others who trade in futures to profit from swings in market prices – a speculative practice that has been blamed for magnifying price movements and for contributing to recent rises in global food prices. Under the new rule, agriculture companies and others groups will be exempt from the cap."]
[2011,"December","Biodiesel production and GHG emissions: According to new research undertaken to measure GHG emissions associated with palm oil-based biodiesel production, the scale of emissions from oil palm plantation on tropical peatland in Southeast Asia could be higher than previously assessed. CO2 emission levels have been estimated at 86 tons per ha per year annualized over 50 years (or 106 tons when annualized over 20 years). The research programme is meant to help regulators assessing the level of GHG reductions associated with alternative biofuel pathways."]
[2011,"December","Castor oil industrial application: Chemical company BASF and car manufacturer FORD informed about the development of a castor oil-based foam that is going to be used for car interiors. The new application could open up new market opportunities for a second tier oilcrop that can be grown throughout tropical regions."]
[2011,"December","Certified sustainable palm oil - global market challenges: Current production of certified sustainable palm oil is estimated at 5.2 mill tons globally – hence accounting for less than 10 percent of world supply. If supply is limited, demand seems to be even smaller: reportedly, less than 60 percent of the certified product is finding a buyer. According to market participants, lack of demand is more of a problem than lack of supply. Although major users of palm oil have pledged to move towards sourcing sustainably produced product, many of them are said to remain reliant on offsetting GreenPalm certificates rather than physical oil to meet their commitments. Moreover, part of the global market seems unwilling to pay a premium for sustainable oil. As a result, incentives for sustainable production tend to remain inadequate. Means to expedite the production and use of sustainable palm oil are being debated at RSPO, the multi-stakeholder, non-governmental initiative that has led sustainability efforts at the international level. Reportedly, increased attention is being given to possibilities of involving governments more closely. One proposal is to encourage national governments to reduce import duties for certified sustainable palm oil so as to offset the price premium coming with the product. Indeed unofficial sources reported that EU policy makers have been invited to consider exempting eco-friendly palm oil from the bloc’s 3.8% import duty. Reportedly, the initiative is supported by the Dutch government and could be included in the EU’s on-going free-trade negotiations with Malaysia and Indonesia."]
[2011,"December","Certified sustainable palm oil -  Indonesian initiative: The Indonesian Palm Oil Association (GAPKI) announced its withdrawal from RSPO. Reportedly, the industry body decided to focus on assisting the government in launching ISPO, the country’s own certification system for sustainably produced palm oil. "]
[2011,"December","Certified palm oil-based fuel: Renewable energy business Mission NewEnergy has obtained ISCC certification (International Sustainability and Carbon Certification) for its palm oil-based biodiesel, which is said to allow GHG emission savings of 41-47%. With ISCC fully meeting European Union RED-requirements, the company has begun selling palm oil-based diesel to the EU market. The company informed that it has also submitted an application to the EPA in the United States, which is currently evaluating compliance with relevant US requirements."]
[2012,"January","ARGENTINA – land ownership policies: As part of a package that gives the government increased control over the agricultural industry, new limits on foreign ownership of farmland have been introduced (see also MPPU no. 25). Non-Argentines will be barred from holding titles to more than 1000 ha in the country’s most productive farming belt. Nationwide (as well as in each municipality) no more than 15% of total farmland can be sold to foreigners, and no more than 30% of foreign-held land can be owned by citizens of the same nationality. In the process a national land registry is going to be set up. It is not clear how much of the country’s productive land is currently owned by foreigners. Current land titles are not affected as the new law will not be retroactive."]
[2012,"January","BRAZIL – GM soybean:  Private sources report a further increase in the role of GM seed in the country’s soybean plantings: the share of GM material is said to have risen from 76% in 2010/11 to 88% in 2011/12. Use of GM soybeans remains concentrated in the Central-Western and Southern regions of the country, which are reported to account for 43% and 40% respectively."]
[2012,"January","BRAZIL – soyoil tax rebate: Since 1991crushers are subject to COFINS, a social security tax of 9.25% due on each ton of soybean processed. Crushers who exported soyoil and meal were entitled to a tax rebate of 50%. Reportedly, the government has decided to cancel the rebate effective December 1st. The change is expected to discourage oil and meal shipments, probably to the benefit of bean exports."]
[2012,"January","CHINA – state sales and purchases: Soyoil: In December, the State Administration of Grain requested concerned government agencies to closely monitor supply of oils towards the festive season, possibly releasing reserves to stabilize prices."]
[2012,"January","CHINA – state sales and purchases:  Rapeseed:  The central government announced it will buy 2.2 mill tons of summer-harvested rapeseed and 0.55 mill tons of autumn-harvested produce with a view to support market prices. However, to date, purchase are said to have been slow – supposedly because the government’s offer price is lower than last season’s price."]
[2012,"January","CHINA – state sales and purchases: Soybeans:  Reportedly, soybeans from state reserves did not find buyers at an auction in December. As to government purchases, the 2011/12 procurement price for soybeans has been set at Yuan 4000 per ton. Whenever market prices fall below that threshold, state stockholding companies should start to purchase so as to support domestic prices and protect farmer incomes. Although the new procurement price exceeds last season’s price by about 5%, the increase could prove insufficient to lift the domestic soybean markets and "]
[2012,"January","EUROPEAN UNION – waste-based biodiesel:  In Germany, biodiesel produced from used cooking oil – even when the latter includes animal fats – now qualifies for double counting against the EU’s consumption targets for renewable energy. Such regulation already applies in the Netherlands, UK and France, while Italy and Spain are expected to soon follow suit. The policy allows countries to use a wider range of feedstock for biodiesel production and is said to help stabilizing the price of biofuel feedstock."]
[2012,"January","INDONESIA – import duties, soybeans:  Set at zero since January 2011, the import duty for soybeans, soybean flour and certain oilmeals (as well as selected other grains and feedstuff) has been raised to 5% effective January 2012."]
[2012,"January","INDONESIA – export tax, palm oil: Due to only small changes in the export benchmark prices for crude and refined palm oil, in December and January, the respective export taxes have not been changed from the level set last November. With regard to the new export tax structure favouring shipments of refined oil (effective since last October), it appears that crude oil shipments have fallen less than anticipated – reportedly because of major bottlenecks in the country’s oil refining industry."]
[2012,"January","MALAYSIA – new uses of oil palm biomass:  Under its newly launched National Biomass Strategy, the government is setting up an international Oil Palm Biomass Center. With the aim of reducing GHG emissions and contributing to more sustainable plantation practices, the centre will support local and international investors engaged in the development of bio-renewable plastics and of new ways of nutrient recycling to improve soil quality. As to the latter, rather than developing new land to raise production, the focus will be on increasing output from existing plantations by reducing plant infections and pollution from mill effluents.  "]
[2012,"January","RUSSIAN FEDERATION – export tax: Under the country’s WTO accession agreement, the duty levied on sunflowerseed exports is set to be reduced – over 4 years – from its current ad valorem rate of 20% to 6%. Market participants expect domestic prices for the seed as well as its sub-products to rise as a result. In any case, efforts to export sunflower oil (as opposed to seed) are expected to continue and sunseed export volumes may not increase markedly, given strong demand from the domestic processing industry."]
[2012,"January","THAILAND – certified sustainable palm oil:  Reportedly, the Thai palm oil industry is ready to start producing and marketing sustainable palm oil following the publication of the so-called National Interpretation of the RSPO standards. The industry may now certify palm oil as sustainable under the internationally recognized RSPO scheme. Certification specifically geared to the needs of smallholders – who constitute the majority of growers in the country – will be made available. The opportunity to certify production is expected to open up new markets, both domestically and internationally – in line with rising customer demand for certified sustainable produce. The first oil palm mills are expected to be certified during 2012. Reportedly, Germany provided technical and financial support towards the development of the Thai certification process.      "]
[2012,"January","UNITED STATES – biofuel production support:  The country’s key support instruments for ethanol production – protective import tariffs and a tax credit for producers – have been discontinued with the beginning of 2012. In place for the last 30 years, the fiscal and import policy measures have been instrumental in encouraging the development of the nation’s ethanol industry – which dominates domestic biofuel production, well ahead of biodiesel. As to biodiesel, it remains to be seen whether or not the respective tax credit is going to be renewed. The fiscal incentive formally expired on 31st December. Thanks to its reinstatement last year – following a one-year lapse in 2010 – the biodiesel industry has set a production record in 2011. Meanwhile, the Illinois state government is said to have extended a local tax credit (in force since 2004 and due to expire end of 2013) by 5 years. Illinois is said to have become the nation’s leading biodiesel producing state. Overall, changes in federal biofuel support policies have major repercussions for the energy and food industries and markets within the US as well as internationally. As to the world market, a slow-down in global biofuel production growth has been reported for 2011, which experts attribute to poor profit margins (reflecting costlier feedstock) and lower investment in the sector.   "]
[2012,"January","UNITED STATES – renewable fuel targets for 2012:  The US Environmental Protection Agency has announced the target volumes and percentage standards for renewable fuel in 2012. In line with the Energy Independence and Security Act of 2007, the overall target and the mandatory admixture rate are directed to rise to, respectively, 15.2 billion gallons and 9.2%. As to the main fuel categories, the production target for ‘biomass-based diesel’ grows – as originally planned – from 0.8 billion gallons last year to 1.0 billion this year. The minimum admixture that each refiner/importer of biomass-based diesel must ensure has been set at 0.91%. The target set for ‘cellulosic biofuels’ (i.e. second generation fuels) is much lower than originally planned, confirming the country’s continued high dependence on conventional biofuels, i.e. ethanol and (to a smaller extent) biodiesel. In 2011, the target for biodiesel production is reported to have been met fully.      "]
[2012,"January","UNITED STATES – palm oil-based diesel:  According to analysis released by the US Environmental Protection Agency, palm oil-based biodiesel does not meet the 20% lifecycle GHG reduction threshold needed to qualify as renewable fuel under the nation’s bioenergy policy. EPA’s assessment covers the stages of fuel and feedstock production, distribution and final use and also includes models that predict changes in land use and agricultural markets. Data used refer primarily to Indonesia and Malaysia. The approach employed is identical to the one used to analyze other biofuel pathways. Key factors contributing to the lifecycle emission estimate for palm oil-based fuel are (i) milling wastewater effluent that eventually decomposes, creating methane, and (ii) the expected expansion of palm plantations onto land with carbon-rich peat soils, which would lead to significant GHG release."]
[2012,"January","UNITED STATES – futures market regulations:  In November 2011, the US Commodity Futures Trading Commission (the agency tasked to regulate the country’s commodity futures and option markets) issued new rules on non-spot speculative position limits for 28 core commodities, including soya beans, oil and meal. Following the Dodd-Frank Reform Act, CFTC’s initiative is meant to lower risks and promote transparency in the swaps, futures and open market place. Consistent with CFTC’s new rules, CME/CBOT is now proposing to change its grain and oilseed contracts. The new limits raise the quantities a single speculator can own or control for a single month and for all months, leaving the quantity for the spot month unchanged. Experts believe that the raising of limits will probably not have a discernible effect on futures markets due to the recent downward trend in prices and volatility;Consistent with CFTC’s new rules,  CME/CBOT is now proposing to change its grain and oilseed contracts. The new limits raise the quantities a single speculator can own or control for a single month and for all months, leaving the quantity for the spot month unchanged. Experts believe that the raising of limits will probably not have a discernible effect on futures markets due to the recent downward trend in prices and volatility; however, it could lead to increased inflows of funds into agricultural commodities if uncertainty returned to the global supply and demand balance.  "]
[2012,"February","BANGLADESH – edible oil prices: Reportedly, the government renewed its commitment to prevent retail prices for (mostly imported) edible oils from rising despite growing market pressure. In recent years, the government obtained assurance from domestic processors to keep prices below a set level in major cities.   "]
[2012,"February","CHINA – futures markets:  The State Grain Administration announced that additional grain futures contracts will be launched between now and 2015. The objective is to improve the access of farmers and companies to tools to hedge risks and to improve price discovery for grains. Currently, soybean, soymeal, soyoil and palm oil contracts are traded at the Dalian Commodity Exchange, where participation of industry clients and institutional investors (both national and foreign) is reported to be on the rise."]
[2012,"February","CHINA – soybean crushing capacity: According to the state-backed China National Grain & Oils Information Center, the country’s annual oilseed crushing capacity expanded by 15 million tons last year, with most new facilities processing soybeans. During 2012, the nation’s soybean crushing capacity is anticipated to increase further to 125 million tons – even though actual crush demand should not exceed 70 million tons. Part of the currently installed capacity uses outdated technologies and therefore is likely to be phased out over the next few years.   "]
[2012,"February","CHINA – import restrictions: Oilmeal imports from India: Based on the detection of hazardous chemicals in rapeseed meal consignments last year, China decided to suspend oilmeal imports from India effective January 1st. Traders expect China to fill the gap through meal from domestic crushers and by shifting to other foreign suppliers. As to India, the China’s measure threatens close to half of the country’s rapeseed shipments and potentially cuts the country’s overall feedstock exports (consisting of rape, soy and groundnut meal) by at least 10%. Meanwhile, Canada, who is China’s leading supplier of rapeseed and rapeseed meal, should benefit from the measure (although some observers pointed out that Canada’s exports are very competitive this season irrespective of the ban). Reportedly, India and China are working to resolve the issue, and a Chinese inspection team is expected to visit India to appraise measures taken by India."]
[2012,"February","CHINA – import restrictions:  Olive oil imports from Italy:   Reportedly, China suspended the importation of Italian olive oil while authorities are conducting a probe into possibly fraudulent labelling practices of 13 Italian olive oil exporters.   "]
[2012,"February","EUROPEAN UNION – GM soybeans:  Following the lack of consensus among EU member states, the European Commission is expected to approve the importation and processing - but not cultivation - of four new GM varieties that previously received green light by the EU’s Food Safety Authority. To avoid the repetition of such deadlocks in the future, member states are engaged in discussions on what grounds GM crops could be banned on a country-by-country basis."]
[2012,"February","INDONESIA – biodiesel subsidy: Reportedly, for fiscal year 2012, the subsidy granted to biodiesel manufacturers has been raised further to Rp 2500-3000 per litre distributed (compared to, respectively, Rp 1000, 2000 and 2500 in fiscal years 2009, 2010 and 2011)."]
[2012,"February","INDONESIA – certified sustainable palm oil:  Besides the recently launched, government-backed certification scheme ISPO, the RSPO expects its certification activities in the country to expand strongly in the coming years. Reportedly, many companies have applied for and are passing through the RSPO auditing process. Estimated at around 2.3 million tons in 2011, the country’s annual production of certified palm oil is expected to reach 5.6 million tons by 2015, possibly overtaking Malaysia’s output of certified product. The projected amount would represent about 20% of Indonesia’s total production and about half of global certified production."]
[2012,"February","INDONESIA – palm oil export tax: Based on a rise in the benchmark price for palm oil, the export tax collected on crude palm oil has been set at 16.5% for February (compared to the 15% rate in effect since November 2011). The tax for refined palm oil moves from 7 to 8%."]
[2012,"February","INDONESIA – soybean market:  According to industry sources the re-introduction of the 5% duty on soybean imports (effective last month) has driven up prices of soy food products on domestic markets. The country depends strongly on imports, with annual soy production and consumption estimated at 0.8 and 2.5 million tons respectively.           "]
[2012,"February","PARAGUAY – soybean losses:  Severe drought has hit Paraguay’s agriculture harder than elsewhere in South America, leading the country to declare a state of emergency. Reportedly, special drought relief measures have been put in place for farmers and rural communities. As for most other crops, 40% of the nation’s soybeans crop seems to be under threat. Soybean is the biggest export earner of Paraguay, which ranks fourth among world soybean suppliers. Expanding sharply since 2007, the soybean sector suffered heavy losses also in 2009, again due to lack of rainfall.     "]
[2012,"February","PHILIPPINES – coconut planting support:  Reportedly, an additional 13.8 million coconut seedlings are going to be distributed to farmers in 2012 under the National Coconut Productivity Programme. For comparison, last year, 3.11 million seedlings have been distributed. Taking advantage of growing demand for coconut-based products, including biodiesel, the programme aims at revitalizing the country’s stagnating coconut production. "]
[2012,"February","UKRAINE – railway cars shortage: Reportedly, the country’s State Railway Administration decided to temporarily ban its railway cars from leaving the country in a bid to secure domestic transportation. The move is expected to hit shipments of sunflower meals to customers in the EU, the CIS and the Baltic – possibly leading to accumulation of domestic stocks and temporary halts in crushing. Reuters, APK"]
[2012,"February","UNITED STATES – biodiesel production:  EPA’s official figure for 2011 biodiesel production is reported at 3.67 mill tons, which compares to 1.30 mill in 2010. Hence last year’s production exceeded the nation’s 2011 target of 2.67 mill tons (established under RFS) by about one third. Reinstatement of the biodiesel tax credit at the end of 2010 has played a major role in the production rise. The industry is urging the government to renew the tax break that has expired end of 2011, also proposing that the production target for 2013 be raised from currently ≥ 3.34 mill tons to 4.28 mill tons.    "]
[2012,"February","UZBEKISTAN – edible oil import duty: With effect from last month, the government raised the excise duty on edible oil importation from formerly 5% to 10%, but no less than USD 0.16 per litre.  "]
[2012,"February","Sustainable soybean:  Scandinavian Arla Foods, one of the world’s largest dairy companies, has announced that it will use exclusively sustainably sourced soybean meal by 2015. Soy-based animal feed employed by the company is going to be certified under the Roundtable on Responsible Soy (RTRS).       "]
[2012,"March","BRAZIL – Amazon port project: Reportedly, the country’s authorities are planning a new grains port in the Amazon region, close to the city of Belem. The facility, which could become operational in 2014, is proposed to handle 18 million tons per year, which would exceed the capacity of the country’s leading ports of Santos (17 million) and Paranagua (15 million). If realized, the new port would substantially lower transportation costs for soybean farmers in the Cerrado, Northeast and Amazon regions, where the country’s soybean growth potential concentrated in recent years. Current transportation costs (estimated at USD 85 per ton) could fall near the level reported for soy farmers in Argentina and the US (USD 20 per ton). A port in the north of the country would also reduce the distance to major destinations, i.e. in Europe, the Middle East and China (via Panama). Meanwhile, social interest groups warned that the planned facility could raise environmental concerns by making soybean farming in the Amazon forest more profitable."]
[2012,"March","CANADA – rapeseed production: Encouraged by steadily rising export demand and domestic consumption, farmers expanded the area sown to rapeseed almost without interruption for several years, and a further increase is expected this year. Experts have warned that, where expansion occurs at the expense of crop rotation rules, disease problems could emerge. In particular, the incidence of club root disease (plasmodiophora brassicae) could rise. Specific to rape species, this disease can significantly reduce seed quality and oil content. Furthermore, the pathogen is known to be able to survive in the soil for many years in the absence of a rapeseed crop. Reportedly, efforts to develop disease resistant varieties are underway.        "]
[2012,"March","CANADA - new health claim: The edible oil industry reported that the country’s health authorities have authorized the use of a new health claim advising consumers to replace dietary sources of saturated fat with polyunsaturated and monounsaturated fats from vegetable oil so as to lower cholesterol level in their diet. The claim will be used by food manufacturers on food product labels.  "]
[2012,"March","CHINA – rapeseed importation from Canada:  Chinese quarantine authorities announced a further relaxation of the ban on rapeseed imports from Canada (see also MPPU no. 10). After restrictions were put in place in late 2009 due to fungal disease concerns, only shipments to areas away from China’s main rapeseed production areas were permitted. Now shipments to selected crushers in major growing areas will be allowed. With domestic production of rapeseed stagnating, imports from Canada are expected to climb back to 2.5-3 million tons per year, after having dropped to 1.3 million in 2010/11. "]
[2012,"March","EUROPEAN UNION – biodiesel industry consolidation:  Reportedly, less than 50% capacity utilization on average in 2011 has lead to factory closures and industry consolidation across the EU. Last year, biodiesel production is reported to have fallen after a decade of rapid expansion. Main reasons behind the drop are competitively priced biodiesel imports, firm feedstock (vegetable oil) prices and weaker political support due to concerns about the environmental benefits of biofuels. Industry experts expect the challenges encountered last year to persist in 2012."]
[2012,"March","INDIA – vegetable oil market -  Import forecast:  Industry sources expect vegetable oil import requirements to increase in 2012. The anticipated contraction in domestic oilseed production in the current crop year, together with a steady rise in national consumption should cause imports to rise further. Total 2011/12 imports are estimated at over 9 million tons, compared to below 4.5 million less than a decade ago. In recent years, the contribution of national production to domestic consumption dropped to 55%.  With stagnating oilseed production and imports consisting almost entirely of oils, the country’s crushing industry is reported to be working at no more than 40-50% of installed capacity."]
[2012,"March","INDIA – vegetable oil market -  Import policy:  Reportedly, Indonesia’s modification to its palm oil export tax regime has driven up Indian imports of refined palm oil, creating an additional threat for the domestic refining industry. To protect their sector, India’s refiners have urged the government to raise the import tariff on refined palm oil from currently 7.5% to 16.5%, as well as to ban the importation of edible oils in packaged form."]
[2012,"March","INDIA - copra procurement: The minimum support price for milling and ball copra for calendar year 2012 has been raised to, respectively, Rs 51 000 and Rs 53 500 per ton, about 12% above the levels applied last year. NAFED continues to be charged with undertaking the price support operations. Reportedly, since the new price was announced last January, market prices for copra and coconut oil first rose and then fell markedly, ending well below the support price level, which has triggered calls for prompt market intervention to stabilise prices.  "]
[2012,"March","INDIA-BHUTAN cooperation:  Reportedly, India agreed to exempt Bhutan from its expert ban on edible oils and other essential commodities. The move is part of expanding cooperation between the two countries, which, in addition to agricultural trade, concerns the energy, health and education sectors."]
[2012,"March","MALAYSIA – palm oil refining industry:  Last year’s change in Indonesia’s export duty structure for palm oil and derived products has reduced the competitiveness of refined palm oil production and exportation in Malaysia (see also MPPU no. 28, 29 & 30). Official sources reported that the government is considering measures to assist affected domestic refiners. The idea is to provide refiners with incentives to specialize in downstream operations and to produce higher value products compared to Indonesia. Malaysia’s annual refining capacity is presently estimated at around 23 million tons (with several new facilities planned for 2012-13), which compares to a current palm oil production of about 19 million tons. According to unofficial sources the government might establish a fund (based on a palm oil production levy) that would be used to subsidize the purchase of crude palm oil by domestic refiners. This would help processors compete with counterparts in Indonesia, also reducing their dependence on CPO imports from Indonesia. Apparently, the government decided not to pursue the other option of suspending the country’s duty-free export quota for crude palm oil, which would have raised domestic supplies for refining purposes. Reportedly, the quota was renewed early last month. After issuing duty free export permits for about 3.6 million tons last year, the total quota for 2012 is said to have been set at 3 million tons, or about 15% of projected national output. Market experts remarked that, in case the problems affecting domestic refining persisted, the industry might consider a partial shift in processing capacities from Malaysia to Indonesia."]
[2012,"March","MALAYSIA – biodiesel use:  The government considers biodiesel to be suitable for fishing boats and announced the launch of a programme to promote the use of palm oil-based diesel in the fishing sector. The proposal is to run fishing boat engines with B5 diesel. Apparently, petroleum companies and engine manufacturers agreed to provide engine warranties for B5 use. The new programme is part of the government's strategy to strengthen or stabilise palm oil prices and to reduce greenhouse gas emissions in energy consumption. The government also informed that, besides developing biofuel from palm oil, it was encouraging the exploitation of non-edible sources like palm biomass to produce certified sustainable biofuel that would meet the requirements of overseas markets, especially in the European Union and the United States.              "]
[2012,"March","PARAGUAY – soy crushing capacity: Last year, Paraguay’s export oriented soybean production surpassed 8 million tons, up from only 4 million tons five years earlier. Due to the nation’s limited crushing capacity, the bulk of the country’s exports currently consist of beans. Actual crush in 2011.12 is estimated at 1.4 million tons. Reportedly, this pattern could change from next year, when new soybean processing facilities are expected to start operating. Thanks to two plants currently  under construction in the river port of Villetta, within four to five years, up to half of the country’s soy crop may be crushed domestically, with soy oil and meal shipments rising accordingly (at the expense of bean exports).         "]
[2012,"March","PHILIPPINES – coconut development: Reportedly, one of the country’s leading private coconut processing groups is going to fund a large-scale planting and replanting programme to be implemented in cooperation with coconut farmers and cooperatives nationwide. Based on concerns about stagnating output and poor exports at a time of increasing demand, the initiative aims at maintaining and eventually expanding the industry’s production potential.   "]
[2012,"March","RUSSIAN FEDERATION – implications of WTO accession: Reportedly, the agricultural industry is urging the government to introduce measures able to mitigate some adverse effects caused by the country’s recent accession to WTO. Allegedly, some sectors have been negatively affected by the reduction in custom tariff protection required under the accession treaty. Sectors concerned include the livestock, dairy, sugar, oilseeds and fat/margarine industries. Regarding the latter, the planned cuts in import duties for fat and margarine and in the export tax on sunflowerseed (from 20% to 5%) are said to strongly reduce the competitiveness of domestic vegetable oil production.       "]
[2012,"March","UNITED STATES – trans fat intake: According to recently published research, the consumption of trans fat among white American adults has decreased by more than half over the 2000-2009 period. According to some observers, the preliminary findings prove the effectiveness of recent policy and industry efforts to reduce human trans fat intake. In this regard, attention was drawn to regional trans fat bans from parts of the food chain, mandatory labelling of trans fat content at federal level, as well as voluntary action by the food industry and efforts by seed companies and oil processors to develop healthier oils.            "]
[2012,"March","UNITED STATES - Renewable aviation fuel:  A private source has estimated that by 2020 the cost of some biofuels could be similar to that of conventional jet fuel. Biofuels made from non-edible vegetable oils (such as jatropha and camelina oil) and cellulosic feedstock are expected to be particularly competitive. Despite this development, the average share of biofuels in the airlines’ fuel mix is, however, anticipated not to exceed 2% at a global level (corresponding to roughly 2.3 million tons). The reason provided is that the availability of attractively priced, certified biofuels is likely to remain very limited in the foreseeable future."]
[2012,"May","ARGENTINA – biodiesel blending rate: Currently at 7%, the government is planning to gradually raise domestic mandatory blending to 10% between May and October this year, adding half a percentage point each month, say private sources. Some observers have related the measure and its timing to a possible slowdown in biodiesel shipments to foreign destinations. In particular, market observers don’t exclude a reduction in the EU’s (and in particular Spain’s) purchases from Argentina. "]
[2012,"May","ARGENTINA – foreign investment:  Chinese investors continue to show interest in investing in agricultural activities in Argentina. Reportedly, officials from China’s Fujian Province have proposed to develop large, currently underutilized tracts of land in Buenos Aires Province by providing advanced irrigation infrastructure. The long-term goal would be to produce grains, oilseeds and other crops for export to China, where domestic output continues to be sufficient to satisfy demand. Reportedly, to comply with recently enacted legislation that limits ownership of agricultural land by foreign individual or companies, Argentina’s farmers would retain ownership of the targeted land, while Chinese partners would be granted pre-emptive rights over products grown on the land.             "]
[2012,"May","ARGENTINA – market regulation:  A leading grain export firm has been temporarily suspended from government registries while the state tax agency is investigating about possible export tax evasions in the past. Such suspensions hamper companies’ export operations and exposes them to higher income and sales taxation. Similar tax disputes between the tax agency and leading grain exporters have been reported in past years, especially during the harvesting/export season. "]
[2012,"May","CHINA – public reserves policy Rapeseed procurement - Reportedly, the government is planning to raise the procurement price for rapeseed from Yuan 4600 to 5000 per ton. In recent years, government purchases have been expanded and state reserves used to support prices and encourage production so as to stem the downward trend in rapeseed plantings. The proposed price increase still requires approval by the State Council."]
[2012,"May","CHINA – public reserves policy - • Soybean procurement and releases:  Private sources estimate state procurement of soybeans since last October at around 3.5 million tons, or about one quarter of the domestic crop. Reportedly, sales from public stocks have been minimal so far, with regularly held auctions attracting only few bids. Since the beginning of May, however, sales from state reserves are reported to have picked up as the price of imported soybeans has climbed beyond the state bidding price of Yuan 3900 per ton. Industry sources also reported that, to cut reserves before the 2012 harvest arrives, the government plans to soon release 2.5 million tons in the country’s north-eastern inland provinces at a discounted price of Yuan 3700-3850."]
[2012,"May","CHINA – soy planting decline:  Semi-official sources forecast soybean plantings to fall for the third consecutive season. After dropping 7 and 10% in the last two seasons, acreage is anticipated to fall by another 6.5% in 2012/13. The resulting drop in production is expected to raise import demand further. Behind the gradual reduction in plantings are government food security concerns that have lead to subsidies being granted to producers of rice, maize and wheat but not soybeans. For this year, a 14% increase in farmers’ grain subsidies is reported, following a 17% rise last year. On the other hand, also the overall amount of arable land available in the country is reported to be shrinking due to urbanization effects."]
[2012,"May","CHINA – monitoring of imports:  Reportedly, olive oil and DDGs are going to be added to the list of commodities whose imports are closely monitored by the government. Oilseeds, meals and oils are being monitored since 2008. The measure is supposed to help importers to analyze the market and the government to regulate the pace of purchases.       "]
[2012,"May","ETHIOPIA – market regulation:  Reportedly, vegetable oil imports and subsequent distribution to poor households continues to be controlled and subsidized by the government. The retail price for the main edible oil, palm oil, has been set at Birr 525 per container of 25 litres. According to private sources, the country continues to be exposed to domestic supply shortages, along with hoarding and black market sales at higher prices, while private traders face a lack of import incentives. "]
[2012,"May","EURASIAN ECONOMIC COMMUNITY – common import policy:  The customs union decided to extend the 5% import duty that applies to tropical vegetable oils to consignments up to 19 tons. Previously, the duty only applied to packages weighing less than 200 kg. Above 19 tons, imports will be allowed to enter free of duty.    "]
[2012,"May","EUROPEAN UNION – storage aid for butter: As in previous campaigns, in March the bloc has started subsidizing private storage of butter. The aid is meant to support the market when prices are low, by temporarily taking product off the market. Under the programme, which has no quantitative ceiling, private operators receive Euro 14.88 per ton for fixed storage costs and Euro 0.26 per ton and day for contractual storage. A similar support programme is in force in the EU olive oil market."]
[2012,"May","EUROPEAN UNION – palmkernel meal quality checks:  The detection of arsenic in imports of palmkernel expeller from Southeast Asia has led the EU Commission to consider adding the meal to the list of ‘high risk’ imports, which would imply increased monitoring of import flows and stringent checking requirements. Reportedly, concerned suppliers are investigating the sources of contamination and have promised to put in place a control system for exports.           "]
[2012,"May","INDONESIA – palm oil export tax:  Based on recent successive rises in the international benchmark prices, the export tax Indonesia collects on crude palm oil has been raised from 16.5% in March to 18% and then 19.5% in, respectively, April and May. The corresponding rates for palm olein are 8, 9 and 10%."]
[2012,"May","INDONESIA – mandatory biofuel consumption:  Starting July of this year, locally produced biodiesel must account for 2% of the total fuel consumed by the country’s mining industry. The measure aims at reducing pollution and promoting domestic use of renewable fuels. Reportedly, several companies already agreed to comply with the new requirement. "]
[2012,"May","INDONESIA – sustainable palm oil incentive: Reportedly, the government is considering to reward plantations that adopt sustainable practices – as defined under the newly launched national ISPO standard – by granting them cuts on bank interest rates and export taxes. Reportedly, plantation companies that have gained international RSPO certification already enjoy preferential bank lending rates. According to industry sources, ISPO certification, which has yet to start in earnest, will cost producers less than RSPO certification.  "]
[2012,"May","JORDAN – olive oil market regulation:  The government is ready to set up an entity responsible for regulating the country’s market for olive oil and for ensuring and promoting product quality. Private sources reported that in recent years the sector has been suffering heavily from deteriorating market conditions and irregularities.            "]
[2012,"May","MALAYSIA – export policy:  Even though the    recent change in Indonesia’s export duty structure has negatively affected the competitiveness of palm oil refiners in Malaysia, so far the government refrained from modifying its own trade policy. Policy makers are concerned about possible negative bearings national export taxes could have on the income of palm oil producers, especially smallholders. Only measures that do not hurt small producers will be considered. Reportedly, among the options pursued is the establishment of a common tariff policy that both Malaysia and Indonesia could benefit from. According to private sources, the government is currently thinking about increasing the tax-free export quota for crude palm oil further so as to prevent a build-up in domestic stocks – which is considered likely given weakening demand from domestic refiners and the country’s high export tax.         "]
[2012,"May","RUSSIAN FEDERATION – export policy: Reportedly, as a result of last year’s bumper soybean crop, the government has decided to temporarily reduce the country’s ad valorem export duty from 20 to 5 % (but no less than 8.50 Euro per ton). The reduced custom duty will remain in place until 1st October 2012.    "]
[2012,"May","SPAIN – biodiesel sourcing:  Spain announced that petroleum companies may only use EU-produced biodiesel to comply with the country’s mandatory blending requirements. Though not banning biodiesel imports from non-EU nations (notably Argentina and Indonesia), the measure is likely to make such imports unattractive while conferring an advantage to biodiesel producers in the EU, and especially in Spain. Reportedly, over the last few years, sharply rising biodiesel imports from overseas resulted in Spain’s biodiesel industry working at less than 15% of installed capacity."]
[2012,"May","THAILAND – palm oil price control:  In Thailand, the palm oil retail price continues to be controlled by the government. Reportedly, the concerned ministry engages in regular consultations with oil manufacturers to ensure fair pricing practices while securing adequate supplies for domestic consumption. Currently set at Baht 42 per 1-liter bottle, the government decided to keep the retail price unchanged despite rising pressure from refiners which requested an upward adjustment based on the recent surge in crude palm oil values. Last year, following the peak in international and domestic prices, the government temporary set the palm oil retail price at Bath 47 per bottle. This time around, the government has offered to introduce short-term measures to help concerned business operators. It also decided to conduct market inspections to make sure that the retail price cap was respected and that merchants were not hoarding palm oil. Reportedly, to calm the market, the government is also considering to import palm oil from abroad – a move criticized by domestic producers who claim that current supplies are still sufficient.          "]
[2012,"May","UNITED STATES – local biodiesel tax credit: Reportedly, the state of Illinois, which is the nation’s leading producer of biodiesel, has ruled to extend the support it grants to the biodiesel sector. Originally introduced in 2003 and due to expire in 2013, a local state tax credit is now due to remain in place until 2018. By contrast, the biodiesel tax concession granted at the federal level has expired at the end of last year without being renewed.         "]
[2012,"May","UNITED STATES – bioenergy support measures:  The federal government has launched two new grant schemes (together worth almost USD 80 million), one giving assistance to existing biofuel operations and the other one reserved for companies that conduct research on advanced biofuels, bioenergy and bio-based products. "]
[2012,"May","Oil palm age profile and cultivation practices in Southeast Asia:  It has been estimated that, in Malaysia, the world’s second largest source for palm oil, about one quarter of oil palm plantations have passed the prime of their lifespan of 25 years and are due for replanting. Market observers warned that this situation could severely limit the country’s capacity to serve the markets growing demand for palm oil in future years. In the case of replanting, 3-4 years need to pass before harvesting operations can resume. According to industry experts, in recent years, many estate owners in Malaysia as well as Indonesia have underinvested in their plantations and apply sub-optimal cultivation practices, causing yield erosion. In order to halt this trend replanting with high-yielding varieties, increased input use, and recourse to better motivated labour force seem urgently required – all measures that tend to raise production costs."]
[2012,"May","Free trade agreements -  United States - Colombia:  The recently completed agreement is set to significantly improve access of US exporters of soybeans and derived products to the Colombian market. Under the new bilateral pact, Colombia is committed to phase out import quotas and over quota tariffs for agricultural products. Soybeans and soymeal will enjoy immediate duty-free treatment, while duty-free quotas will be granted for soyoil imports. "]
[2012,"May","Free trade agreements - United States - Republic of Korea:  The free trade agreement that came into force last March is expected to create new opportunities for US soy complex exports. Korea is a regular importer of US soybeans and derived products, occupying place eight among US export destinations (in value terms). Under the new trade pact, US soybeans and soymeal will enter Korea free of duty, while the tariffs on crude and refined soyoil are set to be phased out during the next 5-10 years. Furthermore, importation of food-grade soybeans will be allowed for the first time.    "]
[2012,"May","Certified sustainable soybean:  Industry experts expect demand for certified sustainable soybean to increase markedly in the coming years. Recently, several certification schemes have been launched, focusing on good agricultural practices and environmental sustainability as well as social aspects. Demand for certified soybean is seen to be growing in particular in northern Europe, and the number of global trading companies committed to buying certified product is said to be on the rise. In fact, in the next few years, sourcing sustainable soya to fully meet demand could prove challenging. Industry experts believe that convincing producers to invest in certification is going to require some time.               "]
[2012,"May","Sustainable biofuel feedstock:  Finnish biofuel producer Neste Oil informed that, last year, half of the raw material it used to produce renewable fuels was certified sustainable. Palm oil, the company’s predominant feedstock, was 83% certified and all of it is said to be traceable."]
[2012,"May","Certified sustainable palm oil - Global supply and demand:  Since its inception in 2008, the market for RSPO certified sustainable palm oil gradually expanded given increasing demand awareness. Today the annual production capacity for certified palm oil is estimated at 5.3 mill tons (plus 1.3 mill tons of certified palmkernel oil), processed by 29 grower companies in 135 mills in six countries: Brazil, Colombia, Indonesia, Malaysia, PNG and the Solomon Islands. Production capacity has thus grown to about 11% of global palm oil output. Certified sustainable palm oil (CSPO) reaches consumers via three supply chain mechanisms: the full segregation method and the mass balance calculation (which together account for one-third of all sales), and the GreenPalm book & claim mechanism (accounting for the remainder of the market). For 2011, actual global supply of CSPO has been estimated at 4.8 mill tons, whereas the total volume of sales is reported at 2.5 mill tons. With multinationals and key palm oil buyers pledging to source CSPO in the future, RSPO expects the market to continue expanding in coming years. However, while further growth in CSPO production seems likely (in particular in Indonesia, Latin America as well as Africa), it remains open to question whether matching growth in demand is going to be achieved. Market observers believe that much will depend on whether sustainable palm oil is going to gain more recognition in the United States, China and India."]
[2012,"May","Certified sustainable palm oil - Indonesia:  According to RSPO data, Indonesia has recently overtaken Malaysia as leading CSPO producer in terms of both, volume and production area. In 2012, the country’s CSPO production is expected to rise to 3.5 million tons, whereas, by 2015, 5.6 million tons or one-fifth of the country’s total palm oil output should be certified according to RSPO standards. "]
[2012,"May","Certified sustainable palm oil - Smallholder involvement:  Indonesia has also become the largest CSPO producer from schemed smallholders. Including smallholders in the transformation towards sustainability is considered to be critical in countries like Indonesia and Malaysia, where close to 40% of total output is estimated to come from smallholders. The latter face important challenges in becoming certified, including the lack of awareness on benefits of being certified; funding support; and the lack of expertise or capacity building. In this regard, a study recently presented by WWF claims that the benefits of embracing sustainability outweigh the certification costs incurred by producers, both large and smaller ones."]
[2012,"May","Certified sustainable palm oil - Sourcing commitment:  Global consumer goods company Unilever has pledged to buy all its palm oil from traceable sustainable sources by 2020. The company is considered to be the world’s largest buyer of palm oil. Its new commitment replaces an earlier one whereby all of the company’s palm oil purchases were to be backed by tradable certificates offered under the GreenPalm book & claim mechanism. Unilever has conceded that offsetting certificates are only a step along the road towards actual, widespread adoption of sustainable practices at the source. The company is said to plan investing in a large processing plant for palm oil derivatives in Sumatra, Indonesia to help it achieve its new target. Some industry experts caution that, in general, the necessary adjustments along the supply chain may require more time than currently anticipated. As a result, the amount of fully traceable produce available by 2020 could prove insufficient to satisfy industry demand. Some industry players have suggested the introduction of preferential import tariffs for traceable certified palm oil as one way to stimulate CSPO production."]
[2012,"May","Futures markets - India:  Surges in domestic soybean prices have prompted the country’s commodity market regulator to delay offers by commodity exchanges of new futures contracts for soybeans as well as to raise the margins that buyers are required to deposit with exchanges in order to trade in soybeans, soyoil and rapeseed. Reportedly, the measures are aimed at curbing excessive price volatility and speculation. IGC April and various press."]
[2012,"May","Futures markets - United States:  Prompted by new regulations issued by the country’s commodity futures regulator, CME Group has raised the margin members need to deposit to guarantee speculative futures positions for all commodities."]
[2012,"May","Futures markets - Palm oil versus soy oil:  The Bursa Malaysia palm oil contract could overtake CME/CBOT soya oil as the world benchmark for the vegetable oil complex in a few years time, according to a market observer. Considering palm oil as the leader in vegetable oil price discovery, open interest in that commodity could exceed that in soy oil. The strategic partnership recently entered by Bursa Malaysia and CME Group seems to corroborate this view: in 2010, CME launched an electronically traded dollar-denominated palm oil contract that is settled against the Bursa Malaysia contract traded in Ringgit. The Malaysian exchange informed that it was studying innovative instruments to enable palm oil traders to better manage market volatility and to allow refiners to hedge refining margins between crude and refined palm oil. "]
[2012,"May","Futures markets - Competition within the United States:  ICE decided to challenge CME/CBOT’s dominance of agricultural markets by listing contracts for soybeans, soyoil, soymeal, maize and wheat. ICE’s new contracts all settle against physical CME/CBOT deliveries in Chicago, but ICE seems to offers lower margin requirements, nearly around-the-clock trading hours and all-electronic dealing. ICE stated its initiative was driven by interest from non-speculative market participants, who, given the shifting regulatory environment, wish to conduct more trade through regulated exchanges, rather than in over-the-counter markets.         "]
[2012,"May","Foreign farmland investment:  Initiated by the UN Food and Agriculture Organization, the first attempt to regulate overseas investment in farmland deals has won the consensus of nearly 100 countries – as well as civil society organizations, nonprofits, farmers' associations and the private sector – after three years of negotiation. The Voluntary Guidelines on the Responsible Governance of Tenure of Land, Fisheries and Forests in the Context of National Food Security aim at, inter alia, regulating the growing trend of so-called farmland grabs, which involve rich countries investing in overseas farming to ensure their own food security. The recurring surges in food prices at the global level is thought to have led to an increase in large-scale land acquisitions in Africa and Latin America, prompting calls for globally recognized principles and practices. The new set of guidelines promotes responsible governance of land tenure and access rights to land, fisheries and forestry, and allows concerned countries to provide safeguards to protect legitimate tenure rights of vulnerable rural populations, including the introduction of ceilings on permissible land transactions and rules regarding the approval of large-scale transfers. The guidelines explicitly encourage investment models that do not result in large-scale transfers of tenure rights to investors. Although implementing the guidelines is likely to pose challenges given their voluntary nature, they are seen as an important first step in the absence of binding agreements. FAO has committed to extend targeted technical assistance to governments to help countries implement the guidelines and adapt them to the national context. "]
[2012,"May","Nutritional guidelines:  As part of its initiative to develop and update evidence-informed guidelines on saturated-fatty acid and trans-fatty acid consumption, the UN World Health Organization has invited comments from interested parties. "]
[2012,"June","ARGENTINA – land taxation:  The country’s leading grain and oilseed producing state, Buenos Aires province, set out to raise its real estate tax revenue – via a revaluation of agricultural land. Apparently, rural land values have not been adjusted since 1955, although farmland has appreciated strongly in the wake of booming agricultural growth. Officials informed that the tax rise will be applied progressively, meaning that 62 percent of the province’s farmers will not be affected. Furthermore, for the remaining 38 percent, exemptions are going to be granted where growers have suffered from the current season’s exceptional drought and floods. Over the recent weeks, farmers have suspended grain sales to protest against the measure, which they claim will burden their businesses excessively. So far the strikes don’t seem to have disrupted oilseed shipment operations, thanks to the availability of ample reserves at ports. Market observers believe  that the turmoil has contributed to the renewed strength in international soybean prices in June.          "]
[2012,"June","AUSTRALIA – biofuel policy:  Although no comprehensive biofuel regulations, consumption targets or mandatory blending rates are in place at federal level, biofuel companies are eligible for tax exemptions and benefited from state financial support, notably in New-South-Wales and Queensland. Unofficial sources report that, recently, also the government of Victoria started supporting the biofuel industry by co-financing the construction of a biodiesel blending facility. "]
[2012,"June","BRAZIL – forest management:  Since 1965 Brazil’s vast forested areas have been afforded protection by a forest code that regulates how much and what kind of land should be maintained as native forest and how much can be cleared for crop cultivation, cattle farming and logging. The code is believed to have played a key role over the past decades in protecting the Amazon rainforest. Last April, the country’s lower house passed legislation – subject to the president’s approval – that updates the code, easing the rules mandating forest preservation. According to social society groups and environmentalists, the changes have weakened the code, significantly reducing the level of environmental protection it affords. On the other hand, land owners and agribusiness groups have welcomed the revisions: apparently, farmers had long asked for changes, arguing that uncertainty over the existing legislation was undermining investment in the agricultural sector. At the end of May, the president of Brazil has opted to veto the revised forest code, modifying those line items that would have reduced the required percentage of forestland spared from clearing as well as provisions granting partial amnesty to landowners who illegally cut down trees. ABIOVE, the Brazilian association of vegetable oil industries, which also coordinates the long-standing soy moratorium (see MPPU no.30, Dec 2011), welcomed the legislation as promulgated by the president, stating that it allows reconciliation of food production with environmental conservation. On a related matter, in early June, the government informed that the deforestation rate in the Amazon biome fell again in 2010/11. On a decrease since 2005, the rate is said to have reached the lowest level since measurements began in 1988. Reportedly, 81% of the Amazon forest are now preserved. ABIOVE believes that this achievement proves the effectiveness of the tools in place to ensure compliance with environmental legislation.     "]
[2012,"June","CHINA – rapeseed state procurement:  The increase in the procurement price for this year’s rapeseed crop to Yuan 5000 per ton (from Yuan 4600 and Yuan 3900 in, respectively, 2011 and 2010) has been confirmed. Reportedly, this year’s purchase target has been set at 5 mill tons – which compares to a total domestic crop estimate of around 13 mill tons. Offering attractive prices, the government continues to purchase an important part of the national crop so as to stimulate domestic production. Notwithstanding, this year, a  poor crop and rising domestic prices are expected to drive up private sector imports of rapeseed, mostly from Canada."]
[2012,"June","CHINA – public soybean stock release:   Local traders have estimated forthcoming sales from government stocks at around 3 mill tons. The offer price is expected not to exceed Yuan 3850 per tons – which compares to current import prices around Yuan 4300. Reportedly, massive government sales will be needed to vacate public warehouse space so as to make room for stockpiling of new-crop arrivals. Since 2008/09, China holds considerable amounts of public stocks, which are used to stabilize domestic prices.             "]
[2012,"June","EUROPEAN UNION – GM approval:  Once again EU member states could not agree to authorize importation - for food and feed use, but not for cultivation - of a new genetically modified soybean variety. The variety had previously been declared as safe for humans, animals and the environment by the EU’s Food Safety Agency. Now the decision rests with a newly formed appeals committee. Should no majority be found once more, the European Commission will decide, likely granting approval. Related to this, also the  latest attempt to end the deadlock over cultivation of GM crops within the EU failed, as 9 out of 27 member countries have rejected a proposal that would have curtailed individual member countries’ autonomy to ban GM cultivation on their own territories."]
[2012,"June","EUROPEAN UNION – public storage aid - Olive oil:  Due to persistently weak prices and ensuing marketing problems, assistance will be granted for private storage of another 100 000 tons of produce. Earlier in the season, two identical packages have been granted, covering 144 000 tons in total. The scheme is set to terminate end of June."]
[2012,"June","EUROPEAN UNION – public storage aid - Butter: At nearly 45 000 tons, uptake under this season’s publicly supported butter storage programme has been reported higher than during the past season’s corresponding period. Open since last  February, the scheme will run until mid August."]
[2012,"June","EUROPEAN UNION – biofuel policy and ILUC:  New attempts to enhance the EU’s regulatory framework on biofuels by factoring in indirect land use changes (ILUC) when accounting for GHG emissions associated with biofuel failed to produce concrete results. In the month of May, although recognizing that ILUC factors need to be addressed seriously, EU officials could not agree on how to measure the full climate impact of biofuels, thus prolonging uncertainty in a debate that could have far-reaching implications for the EU biofuel market, especially the biodiesel sector. Recent research casts doubts on the environmental benefits generated by vegetable oil-based biodiesel (produced either from EU-grown rapeseed or with imported soybeans and palm oil). Some sources claim that, when ILUC factors are considered, much of the biodiesel currently consumed in the EU causes higher GHG emissions than conventional diesel. Biodiesel producers, on the other hand, continue to question the assumptions used to model ILUC emissions and say that scientific evidence is insufficient to justify immediate policy action.            "]
[2012,"June","INDIA – calculation of import duty:  The base import price for refined vegetable oil on which the country’s 7.5% import duty is calculated has been kept frozen since 2006 – although, in recent years,  landed prices for refined oil have been consistently higher than the official base price of USD 484,00 per ton. So far, the government has opted to leave the tariff value unchanged in an effort to check rise in domestic food prices, thus controlling overall  inflation. Such policy has, however, favoured the importation of refined oils, hurting the domestic refining industry. Now that Indonesia’s new export tax structure has further exposed domestic refiners to foreign competition, the country’s industry is urging the government to allow upward adjustments in the base value applied to imported vegetable oils, thus protecting the sector’s interests.        "]
[2012,"June","THAILAND – palm oil market regulation:  In line with past interventions to shield consumers from surges in retail prices (see MPPU no. 35, May 2012), the government decided to introduced a temporary tax on palm olein exports. From mid May to end June, a surcharge of Bath 10 per kg will be applied. The measures is meant to help keeping the price of bottled cooking palm oil at Bath 42 per litre and to prevent shortages in domestic supplies. Reportedly, during the first quarter of 2012, overseas sales of palm olein have risen to 90 000 tons, which compares to a national output of 140-150 000 tons per month and total domestic demand around 120 000 tons a month. Reportedly, to secure domestic supplies, the government also resorted to palm oil imports – a measures that, according to local producers, pushed down the farmgate price for fresh palm fruit. In order not to hurt the domestic oil palm sector, the government has promised to review its policies as soon as prices for fresh palm fruit drop to Bath 3 per kg.      "]
[2012,"June","UNITED STATES – GMO labelling: Reportedly, a formal petition filed with the US Food and Drug Administration calling for nationwide, mandatory labelling of foods containing genetically modified ingredients (see MPPU no. 30, Dec. 2011) has generated 1.1 mill favourable comments by US citizens. FDA informed that it was reviewing the petition and would respond in the near future. Meanwhile, a referendum on mandatory labelling seems to be imminent in the state of California. Biotechnology and food industries are reported to have started a campaign to halt the initiative, warning that labelling would be misleading, drive up food prices and open the door for lawsuits against farmers.      "]
[2012,"June","UNITED STATES – trans fat in food products: Since 2005, government agencies have recommended that consumers minimize their intake of trans fatty acid to lower the risk of chronic diseases. In 2006, the identification of trans fat content on food labels became mandatory and the voluntary use of trans-fat free claims was allowed. The effects of these measures are analyzed in a report published by USDA. The study found a marked decline in the trans fat content of new food products, along with an increase in the use of “no trans fat” claims on product packages. In addition, new products without trans fats generally tend to contain less saturated fat, sodium and calories – suggesting that food companies, when reformulating products to avoid trans fats, are not resorting to those other nutrients, rather substituting healthier ingredients for trans fats."]
[2012,"June","UKRAINE – export policy:  Following this season’s continued expansion in sunflowerseed  and soybean plantings (part of which is due to high winter-kill in wheat), the government is said to be concerned that domestic crushing capacity could be insufficient to process the expected ample oilseed crop and, therefore, to be considering a temporary reduction or suspension of existing duties on oilseed exports.   "]
[2012,"June","Development of new soybean varieties: Monsanto plans to deliver a dozen new soybean traits over the next decade – mostly aimed at improving yields, so as to make production more profitable for farmers. The development of the new varieties is based on both, biotechnology and advanced breeding techniques. To raise yield potential, research efforts are focusing on improved resistance to key insects and diseases, more consistent and flexible control of weeds, and on the insertion of key yield genes. Reportedly, attention will also be paid to agronomic practices.  Work is also reported on varieties with zero trans fat and reduced saturated fat content, which would offer health benefits to consumers while also providing increased stability for food manufacturers."]
[2012,"June","Certified sustainable soybean - Overall trends:  Evidence of growing global supply and demand of sustainably produced soybean has been reported at a recently concluded meeting of the Round Table for Responsible Soy (RTRS), the seven-year old multi-stakeholder initiative that has developed standards for responsible soy production and put in place a certification schemes. World-wide, the number of producers whose output is certified sustainable is said to be growing. Global sales of certified produce have reached 300 000 tons since accreditation was launched in July 2011. RTRS has set a target of 5 mill tons of certified soya produced and marketed annually by 2015."]
[2012,"June","Certified sustainable soybean -  Demand side:  Reportedly, several important EU retailers (operating in the UK, the Netherlands and Switzerland) have made commitments to source soybeans used for own brand products exclusively from certified producers by the year 2015."]
[2012,"June","Certified sustainable soybean - Supply developments:  The Chinese Soybean Industry Association (CSIA)  announced that it will be working with its 750 member organizations to meet RTRS sustainability standards, following the footsteps of Latin American producers. The association plans to launch several pilot projects in the country’s main soybean growing regions. The objective is to introduce RTRS recognized production, processing and marketing, also focusing on foreign markets such as Europe, Japan and South Korea. The promoting and co-ordination of such schemes in China is expected to pose challenges, given that domestic production is dominated by smallholders cultivating 0.2 ha of soy on average."]
[2012,"June","Certified sustainable soybean - Outstanding issues:  RTRS conceded that, for certification to take off at a large scale, the market must guarantee a premium for certified produce. In the absence of such premium, farmers are not likely to embark in the four-year process that is needed to reach the required standards. Based on figures from Brazil, producers require a premium of about USD 2,00 per ton in order to take up certification. Other ways to make certification viable include a gradual reduction in certification fees and administration costs as well as free training for producers. An additional challenge faced by the industry is that multiple certification standards will likely become available, which, unless mutual recognition is achieved, will lead to inefficiencies and risks creating confusion in the marketplace. "]
[2012,"June","Promotion of specialty vegetable oils - Support for diversified soybean marketing in Canada:  Reportedly, the federal government has offered supported for private investment into soybean handling equipment thereby promoting the production, processing and marketing of new soybean varieties. By enhancing traceability and improving product safety and quality, the project fosters the marketing of specialty non-GMO soybean. The goal is to satisfy growing demand for such products in Asian and European markets as well as to develop domestic niche markets."]
[2012,"June","Promotion of specialty vegetable oils - Marketing of specialty sunflower oil in India: Cargill India is ready to launch an oil brand that contains conventional as well as high oleic sunflower oil. The high oleic portion increases the content of  mono-unsaturated fatty acid, thereby offering substantial health benefits. The initiative aims to bring innovations to the marketplace that directly benefit consumers."]
[2012,"June","Oil palm productivity:  Research conducted in Ghana suggests that low oil palm yields in the country are directly linked to pesticide use. Reportedly, pesticides commonly used on farms tend to kill the population of pollinating insects along with the pests. Intercropping with crops that act as hosts for pollinators is mentioned as a possible solution."]
[2012,"June","Free trade agreements:  The trade pacts between EU-Colombia and EU-Peru have been formally approved by the European Council and are likely to come into effect after the EU Parliament vote scheduled for coming September. With regard to the oils and meals sectors, the prospective liberalization of trade should benefit Colombian shipments of palm oil to the EU as well as Peru’s exports of fishmeal and fishoil."]
[2012,"June","Futures markets - Extended CBOT trading hours:  The CME Group decided to expand, starting May 14th, electronic trading hours for its Chicago soybean, soymeal,  soyoil and grain futures/options to 22 hours per day. Reportedly, the measure has been taken to better meet the risk management needs of a global customer base, in particular during market moving events like the release of USDA crop reports."]
[2012,"June","Futures markets - Paraguay futures market:  Reportedly, the country is about to open its first futures market. Trading in a foreign exchange contract is scheduled to start early next year, probably followed by commodity contracts, in particular for soybeans, of which the country is the world’s fourth largest exporter. The Paraguayan initiative draws on expertise provided by partners from Argentina. "]
[2012,"July","BRAZIL – agricultural support 2012/13: Comparable to past years, in the 2012/13 federal budget, total outlays for agriculture will rise by around 8 % percent over 2011/12 levels. In addition to emphasizing production and marketing credits at subsidized rates - with special attention given to family farms as opposed to commercial enterprises as well as a drop in the government controlled interest rate from 6.75% to 5.5% - this year’s budget includes improved borrowing limits for individual growers (up 30% compared to last season), increased support for medium size farms and cooperatives, and larger programmes for agricultural investments and rural risk management. The policy package also provides stimuli for the adoption of good agricultural practices, low-carbon agriculture as well as biofuel production, and promotes region-specific policy measures. Minimum farm gate prices for soybeans will remain unchanged from last season in all growing regions. SAFRAS 9.7 "]
[2012,"July","CANADA – biodiesel production: Unofficial sources have reported a marked expansion in the country’s biodiesel production. Estimated at around 140 thousand tons in 2011, production is seen rising to 220 and 475 thousand tons in 2012 and 2013 respectively, based on on-going industry investments. Reportedly, tallow is set to lose its role as dominant feedstock: its share is estimated to drop from 60 percent last year to 38 percent this year and 32 percent in 2013, due to rising utilization of rape and soy oil. Nationwide implementation of mandatory B2-admixture (tentatively envisaged by end 2012) is supposed to result in an annual consumption requirement of approximately 515 thousand tons.       "]
[2012,"July","EUROPEAN UNION – GM soybean approval: EFSA, the EU agency responsible for technical approval of GM crops, has cleared, for the first time, the cultivation (as opposed to the marketing and consumption only) of a GM soybean variety. Following the agency’s clearance, approval is now required by bloc’s member states. Reportedly, EFSA’s decision has been challenged by a German research firm that claims that residues remaining in the plants from spraying were not considered during the risk assessment (N.B. the variety’s main trait lies in herbicide resistance).   "]
[2012,"July","INDIA - oilseed production support: For the second year in a row, the government has decided to grant a significant rise in minimum support prices for kharif (summer) oilcrops: the support price (per ton) of soybeans has been raised by 33% (to Rs 22 000 and 22 400 for black and yellow varieties respectively); for unshelled groundnut by 37% (to Rs 37 000); for sunflowerseed by 32% (to Rs 37 000); and for sesameseed by 24% (Rs 42 000). Support prices, are adjusted regularly to reflect rises in production costs with a view to protect farm incomes. Clearly, the recent hikes in support prices also aim to encourage domestic oilseed production so as to reduce the country’s expanding edible oil deficit. By comparison, the support prices for paddy rice and for maize have only been increased by, respectively, 16 and 18 percent. "]
[2012,"July","INDONESIA – palm oil export tax:  Based on recent decreases in the international benchmark prices, the export tax Indonesia collects on crude palm oil has been lowered from previously 19.5% to 15% in July, the lowest rate since February this year. The new rate for palm olein is 7% (compared to 10% before)."]
[2012,"July","PAKISTAN – sunflower seed support price: To further stimulate domestic production of sunseed and thus contain the rise in vegetable oil imports, the government has been urged to raise the support price for sunseed. Reportedly, crushers already agreed to purchase sunseed at Rs 2100 (per 40kg bag), while farm gate prices are currently reported to range between Rs 1600 and 2000.      "]
[2012,"July","PHILIPPINES – protein enriched copra meal: Research on enriching the nutritive value of copra meal is going to benefit from public funding in the Philippines. Reportedly, laboratory work and farm trials are underway about reducing the fibre level in copra meal while raising the protein content to 42 percent, which would allow partial  replacement of soymeal in feed rations for swine and poultry.      "]
[2012,"July","PHILIPPINES – biofuel policy: Reportedly, the government agency responsible for the development of the coconut industry, PCA, has invited the country’s inter-departmental Biofuel Board to consider raising the nationwide, mandatory admixture rate for (coconut oil-based) biodiesel from currently 2% to 5% before the end of this year. The proposal has been made in response to recurring hikes in mineral oil prices as well to stabilize the price of and incomes from copra, while making better use the country’s coconut production potential. The proposed rise in the admixture rate would increase annual use of coconut oil for biodiesel production by 210 thousand tons, bringing the total amount consumed to around 350 thousand tons - or about one fourth of annual domestic coconut oil output. According to public officials, the sector could support higher demand provided the government’s coconut palm planting/replanting programme, which relies on locally developed high yielding varieties and hybrids, was pursued."]
[2012,"July","TANZANIA – vegetable oil imports: To secure domestic supplies by facilitating imports and at the same time encourage domestic oilcrop production, the government first suspended the tariffs collected on vegetable oil imports (2009) and then exempted edible oil manufacturers using home-grown oilseeds from paying VAT  taxes (2011). Reportedly, major edible oil manufacturers are now asking the  government to also exempt imported oils from VAT taxation - a move which, according to local experts, would strongly discourage local  production of sunflowerseed and other oilcrops.  "]
[2012,"July","UNITED STATES – agricultural and trade policy discussion : Farm Bill renewal: As a first step in the pending renewal of the nation’s farm spending package, the US Senate has passed its version of a new bill. The proposal envisages a USD 23.6 billion reduction in overall outlays in a 10-year period. The proposed cuts concern primarily the traditional commodity support programmes and, to a lesser extent, the conservation and food stamp programmes. Major changes from the current bill include the termination of direct and counter-cyclical commodity payments, consolidation in the existing conservation programmes, and restrictions in the distribution of food stamps (NB: the latter absorb 80 percent of spending under the current bill, due to a marked rise in the number of beneficiaries). To compensate for the proposed termination of customary support payments to farmers, greater reliance on crop and revenue insurance mechanisms is envisaged. In order to qualify for insurance, farmers would be required to practice risk management and soil/water conservation. Furthermore, the cap on payments to individual farmers would be reduced and farmers with earnings beyond given limits would not be eligible for support. While the proposed switch from direct payments to revenue insurance programmes has been welcomed by the national soybean farmers association, it has drawn criticism from groundnut growers. The next steps will be reconciliation with a version to be passed by the US House, followed by a vote in both chambers and, finally, presidential approval."]
[2012,"July","UNITED STATES – agricultural and trade policy discussion : Trade with the Russian Federation: Reportedly, in the wake of Russia’s accession to WTO, the US Senate is reviewing a bill that would allow the establishment of ‘permanent normal trade relations’ with Russia, where demand for soybean (and livestock) products is expected to be growing strongly. The US soy industry believes that such legislation would open up important new market opportunities. Thanks to its accession to WTO, Russia is expected to bind its agricultural tariffs, thus adding predictability to the country’s trade behaviour. "]
[2012,"July","VIETNAM – soymeal importation: Reportedly, a number of soymeal (and maize) consignments originating from India have been rejected recently at border due to insect infestation. Apparently, similar events were reported in 2011. Officials warned that unless resolved the issue could lead to an import ban. Several importers are said to have switched to other origins. India, together with  Argentina, is one of Vietnam’s key sources for soymeal, with annual shipments close to 1 million tons. "]
[2012,"July","Biodiesel industry reorientation: The shift, over the last few years, in vegetable oil values to a higher plateau and the tendency, in a number of countries, to curtail direct government support for biofuel producers is said to pose new challenges for vegetable oil-based biodiesel producers worldwide. In the mid 2000s, during the rapid build-up in biodiesel capacity, production facilities were typically set up at low capital cost, featuring only basic refining options. Reportedly, today, in order to remain competitive, such units are under pressure to undertake additional investments that would allow them to, inter alia, process cheaper and lower-quality feedstock, keep in storage bigger amounts of feedstock, produce higher-quality biodiesel, or recycle and sell by-products. Adjustments that allow processing of lower-quality feedstock – such as animal fats or recycled oils, which are characterized by higher levels of free fatty acids – seem to be of particular interest to the industry. "]
[2012,"July","Certified sustainable palm oil: Reportedly, supporters of RSPO-backed certification, including World Wildlife Fund-Indonesia, have identified a number of  economic and other benefits arising from the adoption of sustainable production practices and formal certification: price premiums relative to conventional, non-certified produce ranging from USD 0,50 to 50,00 per tonne; improved access to overseas markets, with an estimated 25 percent increase in market penetration in Europe; reduced labour disputes and social conflicts along with more conducive work environments at plantation level; and increased productivity levels among small out-growers associated with large plantations."]
[2012,"July","Sustainable verified rapeseed oil: Reportedly, partnership between global food manufacturer Unilever and commodity supplier Cargill has resulted in a first consignment of ‘verified sustainable’ rapeseed oil. The two companies have joined forces to verify rapeseed production in Germany using Unilever’s internally crafted ‘sustainable agricultural code’, which is said to optimize input use, maximize biodiversity protection, and to provide various other environmental benefits. Unilever aims at covering the entirety of its rapeseed oil needs through this channel during the next three years."]
[2012,"July","Soybean seed royalties in Brazil: A class-action case against Monsanto Co.’s practice to extract royalties from producers who use part of their harvested crop as seed, which originally came from sowing soybean seed that enjoys patent protection, is being heard in front of Brazil’s second highest court. Reportedly, the court has ruled that - brought by producer groups in a southern state - the case would have national application once a decision was reached. The values involved in the case are estimated to total up to USD 7.5 billion."]
[2012,"July","Private palm oil investments - Brazil: Reportedly, the giant Brazilian mining group Vale SA announced the launch a major palm oil project in the Amazon region (Pará State) with the dual purpose of cutting the company’s  surging fuel costs (as well as reducing its environmental footprint) and helping regional development. Through the establishment of a   175 000 ha plantation on previously cleared land, by 2019 the company plans to produce 600 000 tons of palm oil annually – all of which, eventually, will be converted into biodiesel for the company’s internal use, thus achieving a significant reduction in overall fuel costs. The recycling of various by-products is expected to improve the energy balance further. Reportedly, the project is fully in line with the government’s development and environmental goals for the region, and the targeted area is not covered by environmental constraints. The company intends to extensively involve local people in  all cultivation and processing activities. If fully realized, the project would lift Brazil’s annual palm oil output to over 900 000 tons, close to the level presently produced by Colombia, the continent’s leading producer. Apparently, the Amazon region has the potential to attract local as well as foreign investment into oil palm, also thanks to the fact that, recently, a major producer in the region managed to obtain RSPO sustainability certification (see also MPPU no. 23 & 28)."]
[2012,"July","Private palm oil investments - Ivory Coast: Official sources reported that Cargill Inc. is set to increase its presence in the Ivorian market via a major investments in oil palm. Reportedly, the company is planning to set up new plantations and industrial processing facilities worth USD 380 million.                                "]
[2012,"September","ARGENTINA – soybean imports: Imports of soybeans are going to be allowed temporarily to address problems of excess capacity in domestic crushing following the country’s reduced soybean harvest earlier this year. The measure revives a scheme that was in place during 2004-2009, under which crushers could import soybeans from Paraguay, later re-exporting meal and oil while only paying value added tax but not the full export tax. In order to participate in the programme, crushers must be registered and must provide proof that they have purchased 5 mill tons of domestic beans for each ton of imported beans.  "]
[2012,"September","ARGENTINA – biodiesel policies: Effective August 2012,  the export tax on soybean oil-based biodiesel will amount to 32%, the same rate that  applies to shipments of soybean oil. The former, lower rate of 20% (in place since 2008) stimulated the country’s exportation of biodiesel, which climbed from less than 0.2 mill tons in 2007 to around 1.7 mill tons in 2011, making Argentina the world’s largest biodiesel exporter. Reportedly the measure aims at making biodiesel more affordable in the domestic market, given that Argentines are paying more for the fuel than foreign buyers. The tax increase should slow down biodiesel exports (which currently absorb up to 70% of domestic soyoil production), possibly benefitting soybean oil shipments.  To encourage domestic demand, along with the export tax increase, the government also lowered the official national price for biodiesel by 15% (from Ps 5196 per ton to Ps 4405). How the two measures are going to affect the biodiesel sector remains to been seen. For 2012, biodiesel production has been estimated at around 2.7 mill tons, while domestic consumption should be just under 1 mill tons - slightly less than the  theoretical requirement resulting from the present mandatory blending rate of 7%. To what extent local biodiesel consumption will grow, possibly compensating for lower exports, remains uncertain. Moving to a higher mandatory blending rate of 10% would lift domestic demand, but no firm date has been provided for such step."]
[2012,"September","BANGLADESH – state imports:  Securing adequate supplies and stabilizing prices for vegetable oil continues to be of concern to policy makers. Following the introduction of retail price controls and lower import duties on edible oils last year, now the government has instructed a state agency to import 3 000 tons of refined palm oil every three month with a view to improve the flow of supply throughout the year. According to private sources, the level of imports and state reserves will have to be increased if the measure is to achieve its purpose.      "]
[2012,"September","BRAZIL – agricultural support 2012/13: Reportedly, the government decided to increase the availability of (low-interest rate) production loans for farmers growing maize. The measure aims at encouraging maize plantings amid increasing competition from soybeans. Between the two crops, which will directly compete for land coming October, soybeans is currently estimated to be more profitable. There is concern that a reduced maize crop could drive up feed prices, hurting the country’s livestock sector.         "]
[2012,"September","CANADA – rapeseed disease problems: Agricultural experts relate recent reports of increased disease incidence in this year’s rapeseed crop not only to difficult weather conditions but also to tighter than recommended crop rotation across the country during the last 5-6 years (see also MPPU no. 33, March 2012). Main diseases reported so far, include blackleg, sclerotinia and aster yellows."]
[2012,"September","CHINA – crushing capacity:  According to the state-backed China National Grain & Oils Information Center, the country’s annual soybean crushing capacity has reached 125 mill tons, after another 30 mill tons have come on-stream during the last two years. Following this expansion and based on the size of current crush operations the average rate of operation is said to have fallen below 50%."]
[2012,"September","CHINA – edible oil market regulation - Public soybean stock release: After a short break, auctions of soybeans from state reserves have resumed in July, reflecting renewed government concern about rising domestic edible oil prices (in the wake of international price surges) and possible inflationary pressure. Reportedly, 400 thousand tons will be offered every two weeks at prices 10% below import prices. Reportedly, since last April, 1.1 mill tons of soybeans have been sold through auctions. Last year, total sales from public stocks amounted to 2.6 mill tons. State reserves are estimated around 10 mill tons in total. Reportedly, companies that purchased soybeans from state reserves have agreed to refrain from raising end-product prices."]
[2012,"September","CHINA – edible oil market regulation - Rapeseed procurement:  Procurement of rapeseed from this year’s crop by state-owned enterprises has been reported at 3.43 mill tons."]
[2012,"September","CHINA – edible oil market regulation - Price monitoring: The country’s top five edible oil producers have been requested to regularly report their raw material, wholesale and retail prices - a further move aimed at containing consumer prices as well as overall inflation. Reportedly, rising raw material costs (especially for soybeans and groundnuts) have put processors under pressure to raise their retail prices so as to avoid reductions in profit margins. Typically, large processing firms collaborating with the government enjoy certain privileges. Reportedly, participation of smaller enterprises in these schemes remains limited."]
[2012,"September","EUROPEAN UNION – GM approval: Reportedly, the European Commission has requested the European Food Safety Authority to re-examine three new GM maize varieties that had already been cleared by the food agency. Some observers described the move as an admission that the existing risk assessment method needs improvement. Related to this, a number of independent scientific institutes have questioned the EU’s recent approval of a new GM soy variety."]
[2012,"September","INDIA – import policies - Calculation of palm oil import duties:  India decided to revise the base import price it uses to calculate custom duties for refined palm olein (see MPPU no. 36, June 2012). Finally, the six-year old base price has been raised from USD 484 per ton to USD 1053 (which reflects current international prices),  which basically doubles the duties that will be collected on imports. While the tariff rate remains unchanged at 7.5%, customs will now charge USD 79 per ton as opposed to USD 36 before. By making refined palm oil imports more expensive, the government aims at protecting domestic refiners from low-priced imports coming from Indonesia, where exporters  are benefitting from a recent export tax revision. Reportedly, since Indonesia has modified its tax regime, the share of refined product in India’s total imports has risen from 17% to 26%. India’s revised duty calculation is expected to rebalance the competitiveness of oil processing in the two countries, bringing trade in refined palm olein back to its original level. However, private sources have pointed out that the adjustment in base import prices only concerned refined palm olein - but not so refined palm oil. Therefore, traders might shift towards refined palm oil imports, in which case the benefit enjoyed by the refining industry could be cancelled out."]
[2012,"September","INDIA – import policies - Palm oil importation:  The Coconut Development Board has urged the government to ban palm oil imports through south Indian ports to foster consumption of locally produced coconut oil in Kerala and neighbouring regions in Tamil Nadu. The board also recommends to encourage exportation of coconut oil by lifting the existing export ceiling (10 000 tons per year) and allowing shipment in bulk. Market experts observed that, in the past, similar partial import bans proved to be ineffective."]
[2012,"September","INDIA – import policies - Meal import duty:  Recent sharp increases in domestic soymeal prices have given rise to new concerns over food inflation and prompted the government to waive the import tariffs on oilmeals (20% including local levies). Apparently, also the possibility of introducing a temporary ban on oilmeal exports had been considered. The recent rise in domestic oilmeal values reflects both, international price strengths and domestic supply uncertainties: reportedly, poor monsoon rains have threatened crop yields and could lead to domestic oilmeal shortages. Private sources reported that India, Asia’s leading oilmeal exporter, this year might resort to importing meals."]
[2012,"September","INDONESIA – soybean market regulation - Import duty:  Following protests by domestic tempe and tofu producers across the country about soaring soybean prices (in the wake of the recent surges in international values), the government has decided to suspend the country’s 5% import tax on soybeans until the end of this year. With domestic soybean output remaining below 1 mill tons, annual import requirements have risen to nearly 2 mill tons, making the country vulnerable to swings in world prices. Taxation of soybean imports had been temporarily suspended for similar reasons in 2008 and 2011."]
[2012,"September","INDONESIA – soybean market regulation - State market regulation:  According to official sources, in order to protect consumers and stimulate domestic soybean production, the mandate of BULOG, the government agency responsible for maintaining strategic rice reserves, could be extended to soybeans and other staple foods, in which case maximum retail prices and minimum farm gate prices could be introduced."]
[2012,"September","INDONESIA – palm oil export tax:  Based on  further decreasing international benchmark prices, starting September, the export tax collected on crude palm oil will be 13.5% - as opposed to the 15% and 14% rates applied in, respectively, July and August. The new tariff will be the lowest recorded since end 2010."]
[2012,"September","INDONESIA – access to subsidized petrol: Reportedly, as part of a government initiative to control public outlays for subsidized sales of petrol, Indonesia’s palm oil plantation firms will be barred from using state subsidized fuel starting in September."]
[2012,"September","MALAYSIA – export policy:  Policy makers decided to lift this year’s duty free export quota for crude palm oil from 3 mill tons (set last February) to a total of 5 mill tons. The new quota compares to 3.6 mill tons last year and 3.0 mill in previous years, and to a total palm oil production estimate of 19 mill tons in 2012. The measures is meant to prevent a further build-up in domestic stocks so as to keep palm oil prices at a level remunerative for producers. Inventories are reported to have increased in recent weeks as rising production met with weak export demand. Originally, the purpose of allocating export  quotas to individual producers was to help them ship out feedstock destined for their own overseas  refining operations. This time around, government officials described the quota increase as a temporary measure aimed at stock management and price support. The measure has met with criticism from the domestic refining industry: the sector is bound to suffer from the likely reduction in domestic supplies and rising prices of crude palm oil – at a time when the industry has to cope with increased competition from refiners in Indonesia. Industry representatives claim that the sector’s capacity utilization has fallen significantly since Indonesia revised its export policy regime last September last year. The Malaysian government informed that a comprehensive review is underway to also enhance the downstream sector of the country’s palm oil industry. Reportedly, one of the objectives will be to provide refiners with incentives to further specialize in downstream operations so as to produce higher-value products than competitors in Indonesia.       "]
[2012,"September","MALAYSIA – biodiesel sector:  Reportedly, the country’s palm oil-based biodiesel industry has grown considerably less than expected some years ago. Main reasons include, high feedstock prices, limited domestic demand, the need to compete with subsidized petroleum products, and low exports due to rising competition from Indonesia. Currently, the majority of the country’s biodiesel plants are reported to lie idle. Current production estimates range between 250-350 thousand tons per year, whereas installed capacity is reported around 3 mill tons. As to domestic consumption, although mandatory 5% blending has been launched in 2009, to date it only involves three out of the country’s 13 states. Currently, only 150-200 thousand tons of biodiesel are used in the transport sector. Nation-wide implementation of mandatory blending should raise consumption to 0.5 mill tons. Producing that amount of biodiesel requires about 570  thousand tons of crude palm oil, representing only about 3% of current annual palm oil production. While the government offers financial incentives for setting up biofuel production facilities, only limited support is provided for biodiesel sales, whether domestic or overseas. As to exports, last year, shipments are reported to have dropped to 50 thousand tons, compared to the 2009 peak of 230 thousand tons. Indonesia’s shipments, by contrast, are estimated to have risen from below 200 thousand tons in 2009 to over 800 thousand last year.        "]
[2012,"September","RUSSIAN FEDERATION – export policy: The temporary reduction in the country’s soybean export tax - introduced last April and meant to remain in place until coming October - has been  revoked. The tax thus returns back to 20% (but not less than 35 Euro) as opposed to the reduced rate of 5 % (but no less than 8.50 Euro per ton)."]
[2012,"September","UNITED STATES – biofuel policies - Biofuel tax credits:  Reportedly, the US Senate is considering legislation that would reinstate the USD 1 per gallon biodiesel tax credit that has expired end of last year. The proposal is to extend the credit until the end of 2012. Proposed legislation would also extend the small agri-biodiesel producer credit of US cents 10 per gallon. Furthermore, the tax credit applying to cellulosic fuel production would be renewed as well as expanded to cover fuel derived from algae."]
[2012,"September","UNITED STATES – biofuel policies - Biofuel producer support:  Up to 125 biofuel companies - mostly producers of biodiesel -  will be awarded public funds under USDA’s “Bioenergy Program for Advanced Biofuels”. The program grants payments to eligible producers based on the amount of biofuels that are produced from renewable biomass, other than corn starch. Vegetable oils and animal fats qualify as feedstock for advanced biofuel."]
[2012,"September","UNITED STATES – biofuel policies - Ethanol mandate: The Environmental Protection Agency has come under pressure to consider a temporary suspension of the nation’s mandatory use of maize-based ethanol in gasoline production. Petitions filed claim that complying with the mandate at a time of historic drought and record feedstock prices is causing major harm to the country’s meat and dairy industry. The agency decided to ask for public comment on the matter and has until mid November to take a decision. A similar appeal was denied in 2008."]
[2012,"September","UNITED STATES – 2012 drought implications - Policy response:  USDA and other federal agencies have used their authorities to address emergencies and hardships faced by farmers in the wake of the nationwide, historic drought. A long list of measures is under implementation to provide relief to those affected."]
[2012,"September","UNITED STATES – 2012 drought implications - Impact on farm income:  Despite the anticipated production shortfalls, US farmers could, on average, be heading for significant profits this season as record crop prices (especially for maize and soybeans) and indemnities received from federal crop insurance programmes should partially offset the impact of lower yields - according to official sources. As to insurance programmes, over 80 percent of land planted to major field crops is reported to be covered by federal schemes providing protection from yield or revenue losses. USDA’s latest sector-wide income forecast suggests that crop farm gains should be more than enough to compensate for livestock farmers' higher feed expenses and reduced returns in dairy operations. If realized, USDA’s current forecast for 2012 would represent an all-time record level in net farm income. When adjusted for inflation, the anticipated income level would be the second highest since 1970.  "]
[2012,"September","TANZANIA – oil palm development: Reportedly, the government continues to pursue its strategy to enable the development of oil palm in the country, with a view to improve farmers’ economic conditions. Areas where support is being provided include the establishment of crushing and processing facilities, the construction of markets and feeder roads, and quality seed production.       "]
[2012,"September","Soybean seed developments - New GM soybean generation:  With the patent for its first generation seed set to expire in 2014,  bio-technology firm Monsanto has developed a second generation GM soybean variety, ‘Intacta RR2’, said to combine herbicide tolerance with insect resistance. The new GM material, which reportedly allows yield improvements up to 15%, is already commercially available in the United States and Brazil. Official approval has also been granted in Argentina and is said to be imminent in Paraguay. As to major importers, the new variety has been cleared in the EU (for consumption, marketing as well as cultivation) and in South Korea, while in China approval is expected soon. With regard to Argentina, commercial introduction is only expected in 2013 as royalty issues remain to be solved. Reportedly, the country’s seed legislation is currently under review to provide better protection of intellectual property rights for agricultural bio-technology. In particular, clarification is sought on who qualifies as a ‘small farmer’, thus being allowed to reutilize seed from the own crop without paying royalties. Reportedly, Monsanto is working to reach a comprehensive agreement with seed merchants, farmers, processors and exporters to collect royalties when farmers deliver their beans to the market."]
[2012,"September","Soybean seed developments - Flood-tolerant soybeans:  In the United States,  studies are being conducted on possible flood tolerance in soybeans. Reportedly, scientists at USDA’s Agricultural Research Service are finding and incorporating genes from non-native soybean varieties in an effort to supplement the narrow genetic base of US soybeans and improve their tolerance to wet soil and associated diseases. The top three flood-tolerant lines identified so far originate from Cambodia, China and Australia.  Potential beneficiaries of these studies include Mississippi Delta farmers who typically suffer yield losses up to 25% when they plant soybeans in rotation with rice."]
[2012,"September","Soybean seed developments - Adaptation to Japan’s food market needs:  In Canada, research benefitting from public funding is underway to identify Canadian soybean varieties that can best suit Japanese food market needs. Soybean varieties and related products will be tested for their appearance, texture, taste and odour to find the strains that best match the demands of the Japanese marketplace. Varietal screening for specific biochemical compounds will be followed by breeding work. The ultimate objective is to support Canadian soy growers by expanding their export opportunities.       "]
[2012,"September","Palm oil refining and trade in Asia:  Driven by developments in Indonesia, important changes in the region’s palm oil refining and trade pattern could take place over the medium term. According to a survey of Indonesian palm oil firms carried out by Reuters, the country’s annual refining capacity is set to rise to 43 million tons over the next few years - almost double the presently installed capacity of approximately 26 mill tons. Traditionally, much of Indonesia’s palm oil exports occurred in the form of crude palm oil, for further processing in importing countries (notably in India, the EU, China and Malaysia). The planned expansion in domestic refining capacity suggests that, in future, local processing into higher value added products for export could become much more important in Indonesia - a development that, potentially, could alter the pattern of palm oil processing and trade in the entire region. National policy measures are expected to play a very important role in this context, as illustrated by Indonesia’s recent revision of its palm oil export tax regime, which has already triggered policy responses by a key trade partner, India, and by main competitor Malaysia."]
[2012,"September","Certified sustainable palm oil - Food sector:  Food retailer Carrefour Indonesia started selling cooking oil produced from domestically sourced  RSPO-certified palm oil. According to local observers, other retail chains could soon follow suit. Carrefour informed that it is exploring the possibility of expanding sales to Malaysia, India and China. The development is considered as an important breakthrough considering that, unlike the European market, awareness of the importance of buying sustainable products has yet to develop among Asian consumers."]
[2012,"September","Certified sustainable palm oil - Biofuel sector: After complying with RSPO’s smallholder principles and criteria for sustainable production in 2010, the same Indonesian smallholder cooperative, which is part of a Cargill-operated estate, has received certification for palm oil used as biofuel feedstock according to the EU-recognized ISCC (International Sustainability and Carbon Certification). This will allow Cargill to provide customers with palm oil for energy applications in compliance with RED, the Renewable Energy Directive in force in EU member countries."]
[2012,"November","ALGERIA – soymeal import duty:  The country decided to temporarily suspend import duties on all feedstuff so as to help its domestic livestock industry to cope with rising world market prices and eventually contain rises in local retail prices for meat. The country’s livestock producers, in particular of poultry, depend heavily on imported maize and soymeal. Duties have been lifted from September for a period of 11 months.   "]
[2012,"November","ARGENTINA – tax investigation:  The long-standing battle between the country’s excise authorities and some of the country’s top grain firms over alleged export tax evasion is reported to continue. Recent investigations have led to the suspension of a global agriculture biotechnology company from the country’s grain traders registry, while a major international trader has been definitively removed from the same list. Exclusion from the said registry tends to strongly hamper a company’s trade operations and exposes it to significantly higher income and sales taxation."]
[2012,"November","ARGENTINA – biodiesel policies:  After introducing major changes to its policy on biodiesel exports and domestic sales last August (see MPPU no. 39, Sep.’12), the government decided to make further adjustments in September: initially ramped up from 20% to 35%, the country’s export tax has been reduced again (first to 24.2% and then to 19.1%), whereas the government-set internal price for biodiesel has been lifted beyond the level prevailing prior to August. Reportedly, the adjustments were made because the combination of higher taxes and lower domestic prices, coupled with a drop in international biodiesel quotations, had led to heavy losses among domestic biodiesel producers. From now on, the tax rate and the local sales price are supposed to be reviewed every 15 days – taking into account the development of international prices for soyoil and biodiesel. The ultimate objective remains to stimulate domestic biodiesel consumption while at the same time guaranteeing adequate margins for processors."]
[2012,"November","CANADA – R&D support:  The government has announced new financial support for research and development in rapeseed with a view to promote continued strategic growth in the sector. As part of the country’s Agricultural Innovation Program, the Canola Council of Canada is going to benefit from financial assistance for the development of varieties that specifically target the needs of producers, processors as well as consumers."]
[2012,"November","CHINA – soybean sales from state reserves:  In a bid to ease domestic supply tightness and contain renewed food price inflation (caused primarily by the recent soy crop shortfall in the United States and another drop in China’s domestic output) the government has started offering soybeans from its reserves to the tune of 800 thousand tons per month. State auctions are anticipated to continue until early 2013, when commercial imports from South America are expected to arrive. State procurement from the domestic soy crop (2012 harvest) is said to start in November at a price around Yuan 4 400 per ton, which compares to Yuan 4 000 paid last year. Traders expect the government to also intensify, over the coming months, the release of edible oils. Private sources estimate state soybean reserves (from the 2011 crop) in the 5-10 million tons range, while edible oil stocks are pegged around 5.5 million tons. As to the latest soybean auctions, reportedly only few buyers showed interest due to a high asking price of Yuan 4 500 per ton."]
[2012,"November","CHINA / INDIA – trade restriction:  Indian authorities invited China to send a delegation to inspect India’s rapeseed crushing operations. The initiative is connected to China’s ban of rapeseed meal imports from India due to contamination problems (see MPPU no. 32, Feb.’12). Once Chinese officials have verified and certified the safety of rapeseed meal production in India, China is expected to lift its import ban. "]
[2012,"November","EUROPEAN UNION – biofuel issues -  Investigation on biodiesel imports:  In response to a complaint lodged by the European Biodiesel Board regarding the sale of biodiesel from Argentina and Indonesia at prices below those prevailing in the EU market, the European Commission has started investigating the matter. The process could lead to the introduction of anti-dumping duties – as those imposed on biodiesel imports from the United States and Canada since, respectively, 2009 and 2011. Allegedly, biodiesel producers in Argentina and Indonesia are benefitting from differential export tariffs and, unlike EU producers, are not subject to strict  sustainability requirements. In recent years, combined imports from Argentina and Indonesia have expanded continuously, reaching about 2.4 million tons in 2011 (about 90% of total EU imports). During the same period, production expansion in the EU has slowed down, eventually coming to a halt in 2011, which has pushed the industry’s average capacity utilization to less than 40%, leading to producer complaints. Indonesia and Argentina, on the other hand, are determined to defend their position:  Indonesian officials have questioned the EU’s allegations, while Argentina has filed a WTO complaint regarding allegedly discriminatory import policies applied by Spain (see MPPU no. 35, May’12).\n"]
[2012,"November","EUROPEAN UNION – biofuel issues - EU biofuel policy:  The European Commission has proposed capping at 5% the contribution that first-generation biofuels (i.e. those produced from oilseeds, starch crops or sugar) are allowed to make towards the EU transport fuel consumption target for 2020. The existing EU target envisages that as much as 10% of road and rail energy come from renewable sources – a requirement that, based on new findings, could prove insufficient in the fight against global warming: recently, doubts have been expressed regarding the GHG reduction potential of several crop-based biofuels, notably when the impact of indirect land use changes (ILUC) is factored in (see MPPU nos. 10, 15, 22, 29, 30 and 36). Reportedly, under the newly proposed target,  EU production of crop-based biofuels would not be allowed to grow beyond the current level. The Commission’s proposal would also require reporting of estimated emission levels for each biofuel – including indirect land use change factors. However, the latter requirement would remain void of legal implications, in that all biofuels would continue to be treated equal, at least until 2020. From that year onward, though, only fuels meeting strict GHG saving thresholds – including ILUC factors – will qualify, which could lead to the exclusion of  biofuels produced in less sustainable ways. In this respect, depending on the criteria used, several oilcrop-based fuels could be disqualified. Finally, the Commission’s proposal also includes plans to remove all subsidies for growing biofuel crops. To enter into force the draft proposal will require approval by all EU member governments as well as by the European Parliament."]
[2012,"November","INDIA – export policy:  The government has decided to allow, until September 2013, exports of edible oil in branded consumer packs up to 5 kg within an overall limit of 20 000 tons. Such exports were banned last August in an attempt to rein in domestic prices. The ban’s temporary removal will allow traders to ship small quantities of groundnut, sunflower and rapeseed oil, mainly catering to expatriate demand in neighboring countries."]
[2012,"November","INDIA – sector development -  Overall sector growth:  The country’s recently approved 12th Five-Year-Plan (2012-2017) includes plans to increase domestic oilseed production and enhance oil palm cultivation. Based on productivity improvements, total oilseed production is expected to grow by 25% over five years. Furthermore, a special programme dedicated to oil palm growers envisages financial support over four years to support planting operations and to promote drip irrigation. Special emphasis will be placed on the development of wasteland in the Northeast of the country."]
[2012,"November","INDIA – sector development - Olive oil:  Although India’s current per capita consumption of olive oil is minimal, the country’s olive oil market could grow based on both imported and locally produced product. Reportedly, Mother Dairy, an Indian government wholly-owned company that created a mass-market brand for locally produced edible oils, is planning to sell imported olive oil throughout the country. At the same time, a first pilot project on local olive cultivation has been implemented during the last four years on a number of state-owned farms in Rajasthan, encouraging the state government to extend the scope of cultivation to private farms starting this year. The target is to bring under cultivation 5 000 ha over the next three years, with a view to make olive oil a commercially viable venture. "]
[2012,"November","INDONESIA – market regulation - Strategic food reserves:  Reportedly, the government, which currently only maintains strategic stocks of rice, is considering to expand the reserves held by the state-run Board of Logistics (BULOG) to include soybeans and sugar. The reserves would be used to stabilize domestic retail prices. In the case of soybeans, rising demand and limited local production have driven up the country’s dependence on imports, making it vulnerable to global shortages and to the ensuing hikes in prices. In the past few years, to cool domestic prices (which rose on the back of international prices surges) the government repeatedly resorted to suspending import duties for soybeans. Reportedly, future buffer-stock operations by BULOG would rest on fixed base prices for soybeans – one for purchases from farmers and one for sales to soybean processors. The new programme could be ready for implementation towards the middle of next year. Actually, the envisaged buffer-stock scheme would not be new to the country: until the mid 1990s, BULOG operated similar edible oil reserves for price stabilization purposes."]
[2012,"November","INDONESIA – market regulation - Self-sufficiency policies:  The government confirmed its commitment to strive for self-sufficiency in all key food commodities – a principle that could be enshrined in the country’s Food Law, a revision of which is currently under debate in parliament. Related to this, a recent OECD-report reviewing Indonesia’s food policy warned that border protection measures (used to stimulate domestic production) are prone to hinder competitiveness in the farm sector and to lead to increased food costs for poor consumers. "]
[2012,"November","INDONESIA – palm oil export tax:  Based on  further decreasing international benchmark prices, starting this November, the export tax collected on crude palm oil will be 9% - as opposed to 13.5% applied in the two preceding months. The rates for the various other types of oil have been lowered accordingly, with highly refined oils and palm oil-based biodiesel attracting zero tariff. The new tariff rates are the lowest recorded since November 2010."]
[2012,"November","MALAYSIA – export policy:  The government has announced two changes in the country’s export regime for crude palm oil: from January 2013, duty-free export quotas shall be discontinued and the current export tax of 23% will range between 4.5 and 8.5%, depending on the prevailing market price. The measures are meant to protect the interests of both plantation owners and palm oil refiners – after both groups have been negatively affected by last year’s changes in the Indonesian export policy regime (see MPPU nos. 33&39, Mar.&Sep.’12). Lower taxation of crude palm oil exports should help preventing a build-up in domestic stocks, thus avoiding price drops that hurt growers. The envisaged discontinuation of tax-free exports, on the other hand, strives to ensure adequate raw material supplies for domestic palm oil refiners. The effectiveness of these measures in restoring the competitiveness of palm oil processing and trade in Malaysia has been questioned by market experts who emphasized that the problem lies in Malaysia’s oversupply in refining capacity relative to production – while the opposite situation is said to hold for Indonesia, i.e. local refining demand exceeding current processing capacity."]
[2012,"November","MALAYSIA – domestic S/D steering:  Concerned about the recent swelling in domestic palm oil stocks and the ensuing plunge in prices, the government is considering measures to help stimulating domestic consumption on one hand and contain national supply growth on the other - Biofuel policy:  Implemented in part of Peninsular Malaysia since late 2011,  mandatory biodiesel blending (at B5 level) is expected to be applied nationwide from January 2013. Nation-wide B5-adoption is estimated to require around 500 000 tons of palm oil annually. Reportedly, the government is also engaged in consultations with relevant parties regarding the future shift to B10. "]
[2012,"November","MALAYSIA – domestic S/D steering:  Concerned about the recent swelling in domestic palm oil stocks and the ensuing plunge in prices, the government is considering measures to help stimulating domestic consumption on one hand and contain national supply growth on the other - Replanting policy:  Reportedly, the government is considering to renew its support programme for oil palm growers that replant old/unproductive trees. While the ultimate objective would be to raise productivity levels, the envisaged measures would slow down growth in domestic palm oil output during an initial period of 4-5 years. The plan would concern about 100 000 ha, with a corresponding annual oil output of approximately 300 000 tons. According to industry experts, due to the fact that financial incentives would continue to be reserved for independent smallholders the national age profile of trees would still remain well below optimum levels (see MPPU no. 35, May’12). "]
[2012,"November","MEXICO – edible oil import duties:  The country’s tariffs on numerous crude and refined vegetable/animal oils and fats have been lowered (and in some cases reduced to zero), reflecting government efforts to reign in domestic food price inflation. Mexico depends heavily on imports of vegetable oil and consumers are said to have been strongly affected by the recent hikes in world market prices. The envisaged duty cut could have the side-effect of curtailing margins in domestic crushing and refining operations, while traders are likely to raise their oil/meal imports at the expense of oilseed purchases.   "]
[2012,"November","NEW ZEALAND – biodiesel production support:  A government programme launched in 2009 to encourage investment into national biodiesel production – comprising a subsidy on the sale of domestically produced biodiesel –  has expired without being renewed. Due to limited industry investments, take-up of the subsidy is reported to have been slow. According to market observers, investors expected more support as well as long-term assurances from the government. As to mandatory blending, the government stopped such requirement back in 2008. To date, much of the country’s demand for biodiesel has been covered by imports."]
[2012,"November","PHILIPPINES – biofuel policy:  While the country’s Department of Energy is committed to raise the mandatory blending rate for (primarily coconut oil-based) biodiesel from the current B2 level to B5 in 2015, the biodiesel industry would like to see the shift implemented already next year. According to industry representatives, the sector is ready to produce the corresponding annual requirement of about 310 000 tons of biodiesel. Moreover, the country’s current supply of coconut oil – around 2.1 million tons per year – would still be sufficient to cater for all types of export demand. Finally, ramping up domestic biodiesel consumption is said to be unproblematic because the gradual appreciation in petroleum prices combined with gradually falling coconut oil values have led to a situation where biodiesel can be sold cheaper than mineral oil diesel. From the government’s perspective, however, any biodiesel expansion plan needs to remain compatible with its policy to boost the exportation of high value-added coconut products, including fresh coconut water, virgin coconut oil, coconut sap sugar and several others. "]
[2012,"November","SERBIA – export limitation:  In order to prevent domestic supply shortages in the wake of the country’s recent poor harvest, the government of the Republic of Serbia decided to introduce temporary export limitations for soybean and sunflower (as well as sugar-beet).  To mitigate the impact of this year’s drought, the government will also provide financial assistance to affected farmers. Apparently, concerned about possible negative repercussions on on-going market transactions, trade partners in the EU have asked that all outstanding contracts (i.e. those signed before any ban comes into effect) be fully honoured. "]
[2012,"November","UKRAINE / CHINA – government-initiated loan-for-crop deals:  The government of Ukraine may soon enter the Chinese import market for soybeans and rapeseed via unusual loan-for-crops contracts. Reportedly, the two countries recently signed a such contract for maize, whereby China agreed to provide loans to the Ukraine in exchange for supplies of maize at a set price. Apparently, the Ukraine intends to use the Chinese credit lines for purchasing agriculture technologies, herbicides and pesticides from China. Reportedly, China has made used of similar schemes in recent years to secure energy supplies. "]
[2012,"November","UNITED STATES – agricultural policy:  The US Farm Bill – in place since 2008 – expired in September without agreement on a new 5-year law being reached between the two chambers of Congress. The immediate consequences of the bill’s expiration are said to be limited because the bill’s two largest and most crucial components – the provision for subsidized crop insurance and the food stamp programme – will remain in effect thanks to their status as permanent legislations. In addition, most commodity-specific measures are set to remain in place until the end of the 2012/13 crop year. However, direct subsidy payments to farmers should come to an end as a result of the bill’s expiration, along with public funding for research and environmental programmes and various export promotion schemes. Disagreement between the two arms of Congress focused on commodity-specific spending: while the Lower House favoured setting minimum prices for key commodities over five years, the Senate wanted prices used for crop insurance schemes to adjust annually. Furthermore, the House proposed deeper spending cuts in nutritional programmes."]
[2012,"November","UNITED STATES – biofuel developments - Policy:  The Environmental Protection Agency (EPA) decided to raise the amount of bio-based diesel required to be included in fuel markets in 2013 to 4.28 million tons, which compares to a mandatory consumption target of  3.34 million tons in 2012. The term ‘bio-based diesel products’ refers to biofuels derived primarily from vegetable oils, animal fats and waste oils (also considered as ‘advanced biofuels’). Considering the prospective slowdown in soybean oil production and supplies during the 2012/13 marketing season, market observers believe that the higher biodiesel target could raise the country’s import requirements, notably of palm and rapeseed oil."]
[2012,"November","UNITED STATES – biofuel developments  - Research:  Research on alternative biofuels that would not impact food supply is set to benefit from new public grant money in the United States. Reportedly, research will focus on non-food feedstock grown on unused or underutilized agricultural land – for example marginal floodplains along the Missouri and Mississippi rivers."]
[2012,"November","UNITED STATES – biofuel developments - Aviation fuel:  Reportedly, USDA has joined forced with stakeholders in the aviation sector to promote the production of renewable jet fuels for both commercial and military applications. Apparently, efforts will be directed towards refining soybean oil-based jet fuel."]
[2012,"November","UNITED STATES – biofuel developments - Palm oil-based biodiesel:  Since EPA determined, in January this year, that palm oil-based fuel does not meet the 20% lifecycle GHG reduction threshold needed to qualify as renewable fuel under the US bio-energy policy (see MPPU no. 31 Jan.’12), Indonesia’s palm oil industry has submitted new analyses claiming emission reduction rates between 40 and 60%. To review the matter and undertake field visits together with Indonesian counterparts, EPA accepted to send a delegation to the world’s leading palm oil producing country."]
[2012,"November","Biofuel sustainability certification:  Over the last few years, the ability of biodiesel suppliers to provide a certificate of sustainability has become critical for customers given that, in an increasing number of countries, only certified products qualify for the various national blending mandates or tax exemptions. Sustainability certification is thus bound to become an industry standard for the world biofuel market. In the EU, one of the world’s largest biofuel markets, member states are required to have relevant legislation in place since December 2010. EU biofuel producers have the choice to follow either national standards (in which case their product can only be sold in the domestic market) or one of the voluntary, internationally recognized schemes. In July 2011, the EU approved a first batch of seven such voluntary certification schemes (see MPPU no. 27, Aug.’11). Meanwhile, the number of approved schemes has risen to eleven. According to industry sources, the multitude of schemes available is causing confusion and additional costs for all parties concerned. Hence the call to promote the development of a single, truly international ISO scheme. In this regard, the need to take into account the complexities of direct and indirect land use changes as well as locally diverse social dimensions poses major challenges. In general, biofuel sustainability policies, certification schemes and traceability methods used by individual companies still seem to be in their infancy. Over the coming years, continuous improvement in sustainability assessment methods, regulatory schemes and certification practices will be needed."]
[2012,"November","GMO issues - Trade in new GM soybean:  Chinese authorities have not yet approved the importation for direct human consumption (as opposed to feed and oil applications) of Monsanto’s second generation GM soy variety named Intacta RR2 (see MPPU no. 39, Sep.’12). As a result, a large grain producers’ association in Brazil – one of China’s main supplying countries – has invited farmers to refrain from using the new seed material so as to avoid accidental contamination of shipments of approved soy products, which would put Brazil’s exports to China at risk of being refused – as has happened back in 2004."]
[2012,"November","GMO issues - EU-wide versus national GM rules:  In recent years, a number of EU member states claimed the right to ban GM cultivation on their own territories, irrespective of whether or not cultivation of a given GM crop had gained approval at EU-level. Last September, the European Court of Justice has confirmed its position on this matter: additional national authorization procedures – introduced on top of the existing approval process managed by the  European Food Safety Authority – are considered illegitimate. The right of farmers to cultivate EU-vetted GM crops has to be respected and growing of GM plants cannot be subject to mandatory coexistence measures."]
[2012,"November","Enforcement of environmental regulations - Malaysia:  Reportedly, over the last two years, a number of oil palm mills in Sabah State have been brought to court by the Department of Environment for violations under the Environmental Quality Act, notably the discharge of effluents above permissible levels, leaking retention ponds and ground seepage. Furthermore,  several mills have been ordered to upgrade their pollution control mechanisms. Officials have underlined that, to discharge its control functions, the ministry needs the concerted effort of the Federal and State governments, local authorities, industry players and the public."]
[2012,"November","Enforcement of environmental regulations - Indonesia:  Reportedly, an oil palm company in Sumatra was discovered clearing protected carbon-rich peatland based on an illegal logging permit. Following intense campaigning by environmental groups, the permit has been revoked by court order. Apparently, the license  had been issued after the country implemented a two-year moratorium on logging peatland and other high conservation-value forests (see MPPU no. 27, Aug.’11)."]
[2012,"November","Regulation of commodity derivative markets:  In the United States and the EU, policy makers continued discussing about possible means to control excessive speculation in commodity trading, notably by imposing restrictions on traders of futures, options and their derivatives, with particular attention being given to food-related commodities. The US futures trading regulator and the EU parliament have both backed the introduction of position limits that determine maximum net positions traders can hold or enter into over specified periods of time. The initiatives attracted criticism from the traders community, which argued that arbitrary position limits would reduce liquidity and prevent companies from hedging accurately. In general, the debate about the best means – and the actual benefits – of controlling speculation remains controversial and, as a result, reaching consensus among policy makers is likely to prove difficult."]
[2012,"November","Certified sustainable palm oil:  A global commodity processing and trading company informed that it is aiming at 100 percent certified palm oil production in new plantations it is setting up in Gabon. Reportedly, high conservation-value studies, forest inventory and engagement with local communities have been included in the company’s planting operations."]
[2012,"November","South-South cooperation – groundnut:  Reportedly, India and Argentina decided to join forces to develop groundnut farming, trade and related aspects. The Indian Oilseeds and Produce Export Promotion Council and the Argentina Peanuts Chamber have signed a MoU to this effect. India is keen to improve its average yield levels and its export strategy, two areas where Argentina has made important strides."]
[2012,"November","Biofuel made from algae:  According to the US National Research Council (which belongs to a group of private, non-profit institutions advising the US government), currently algae-based fuel cannot be produced on a large scale without employing unsustainable amounts of energy, water and fertilizer. While outlining the need for continued R&D work to make algal biofuel sustainable and cost-competitive, the Council’s study also highlights the fuel’s long-term potential, noting that future innovations and increased production efficiencies could enhance the fuel’s viability. In recent years, the US Department of Energy has supported a number of projects to develop algal fuels, and growing amounts of such fuel have been used for test purposes by both the US military and producers of commercial jet fuel worldwide.      "]
[2012,"December","BRAZIL – biodiesel production:  Private sources reported plans by major international trading houses to expand their biodiesel production capacity in the country, eyeing both the domestic and export market. Expansion plans seem to hinge on the introduction of a higher mandatory target for domestic consumption – a move that the government keeps postponing based on concerns about the country’s limited supply of vegetable oil as biodiesel feedstock. Thus, Brazil’s mandatory blending rate for biodiesel remains at 5%.  In 2012, the country’s biodiesel output is estimated at around 2.3 million tons, while total installed biodiesel production capacity is estimated at a much higher 6.9 million tons. "]
[2012,"December","BRAZIL – soybean moratorium:  Launched in 2006, the private sector voluntary moratorium on trading and financing of soybeans grown on land illegally cleared in the Amazon region has been extended for another year until January 2014. The initiative, which is backed by the government as well as civil society groups, is meant to complement and reinforce the environmental provisions contained in the  recently amended National Forest Code (see MPPU no. 30&36, Dec’11&June’12). "]
[2012,"December","CHINA – quality standards for imported vegetable oil:  Reportedly, starting in January, edible oil imports will be subject to stricter quality controls. Quarantine authorities are expected to require comprehensive guarantees for all landed oils, in particular regarding stearic acid and peroxide content in cargoes (– two parameters that determine product safety for food use as well as storage life –), implying that shipments of palm oil may be more affected than those of soy and rapeseed oil. Cargoes that fail to meet the new standards will be required to undergo costly additional refining before they can be marketed; consequently, importers are expected to develop a preference for crude oil imports for subsequent, single  refinement within China – a trend likely to affect countries such as Indonesia, which invested heavily in local processing capacity with the aim to spur exportation of value-added, refined products. According to market observers, the prospective change has prompted Chinese traders to intensify foreign oil purchases in  recent weeks, even though details about the new regulation have yet to be published."]
[2012,"December","CHINA – state soybean procurement and sales - State procurement:  Reportedly, the official procurement price for soybeans harvested this year has been set at Yuan 4 600 per ton, which compares to current market prices between Yuan 4 400 and 4 450; last year’s procurement price amounted to Yuan 4 000 per ton. This will be the fifth consecutive procurement campaign for public stockpiling purposes – aimed at protecting farmers’ interests by keeping domestic soybean prices above those of imported beans. Total state purchases to date are estimated at about 14.6 million tons. For this year’s crop, official procurement is going to last until next April and state warehouses have been instructed to accept any amount farmers wish to sell. As long as prices for home-grown beans continue to exceed those charged for imported produce, soybean import demand by crushers can be anticipated to remain strong."]
[2012,"December","CHINA – state soybean procurement and sales - Public sales:  As anticipated by private sources, recent public offers of soybeans from state reserves (– meant to ease domestic supply tightness and contain renewed food price inflation –) have attracted scarce buyers’ interest, given that the initial bidding price was fixed at Yuan 4 500 per tons, i.e. around the market prices buyers need to pay for domestic and imported beans. Reportedly, as of mid November, state auctions might be temporarily suspended with a view to prevent traders from selling their purchases from state reserves back to the government as it starts procurement operations. "]
[2012,"December","EUROPEAN UNION – olive oil regulations:  Reportedly, possible amendments to key regulations concerning olive oil production and marketing within the EU are currently under discussion at the European Commission (for subsequent consideration by the Council and Parliament). The main areas covered under the so-called “Olive Oil Action Plan” are: (i) anti-fraud measures, including obligatory authenticity tests and subsequent reporting of results, (ii) product labeling, comprising detailed rules on the positioning of information and font size, (iii)  use of non-refillable containers in the restaurant and hospitality sector, and (iv) the use of higher trigger prices for EU private storage aid.     "]
[2012,"December","FRANCE – palm oil tax:  Reportedly, a French Senate committee proposed to raise taxation of palm oil consumption from currently Euro 100 per ton to Euro 400, citing concerns about the oil’s environmental footprint and health properties. The initiative caused a considerable stir among oil palm industry players in Southeast Asia. To come into force, the proposal needs to first receive final approval by the Senate and then pass the Lower House. Meanwhile, concerned governments are reported to have set up a joint task force charged to the resolve the issues raised.        "]
[2012,"December","INDIA – import policy:  Since doubling the base import value for refined palm olein in last August (see MPPU no. 39, Sep’12), India’s government has twice lowered the value used for calculating custom duties so as to reflect price movements at the global level. Originally raised to USD 1 053 per tons, the value was first brought down to USD 889 and then to USD 887. Meanwhile, base import values for other types of crude and refined palm oil were kept unchanged."]
[2012,"December","INDIA – oilseed support prices:  After significantly lifting the support prices for kharif (summer) oilcrops earlier this year, India recently raised the procurement price for rabi (winter) rapeseed from Rs 25 000 per ton to Rs 30 000 per ton. This season’s 20 percent rise follows a 33 percent increase for last year rabi crop, thus reflecting the government’s continued effort to encourage domestic oilseed production and slow down import growth. For comparison, the support prices for kharif rice and maize have been raised by, respectively, 16 and 18 percent, whereas the procurement price for wheat has been left unchanged.    "]
[2012,"December","INDONESIA – palm oil export policy - Policy impact:  According to industry sources, last year’s change in Indonesia’s export tax regime (–  favouring the exportation of refined oils over crude oils –) has led to the following developments: (i) accelerated investment in the downstream palm oil industry, spurring growth of a wide range of oleochemicals and refined products; (ii) a surge in the number of refined palm oil items produced in the country (from approximately 45 to 80); and (iii) a rise in the export share of refined products from 40 to 60%."]
[2012,"December","INDONESIA – palm oil export policy -  Revisiting policies:  Reportedly, prompted by Malaysia’s recent announcement of reduced taxation of crude palm oil exports from January 2013, the Indonesian government is reviewing its export policy for crude palm oil. Apparently, Indonesian traders are concerned that Malaysia’s move (– which itself was introduced in response to the export incentives Indonesia introduced late last year¬ –) could reduce the competitiveness of their exports. "]
[2012,"December","NIGERIA – oil palm investment:  Reportedly, an environmental rights group challenged a land acquisition project by a major oil palm firm, claiming that the principles of the Roundtable for Sustainable Palm Oil have not been followed, especially with regard to the rights of the concerned local communities. Allegedly, the company failed to reach – prior to starting land development activities – an agreement with the local landlord communities. The company meanwhile informed that it respected all obligations by paying compensations to the local government in favour of the concerned communities. "]
[2012,"December","PAKISTAN – sunflower support price:  Reportedly, Pakistan’s government and the country’s oil extraction companies agreed to raise the purchase price of sunflower seed from currently Rs 42 500 to Rs 52 500 per ton. The initiative reflects efforts to stimulate growth in domestic production.         "]
[2012,"December","PARAGUAY – soy export taxation:  The country’s Senate has passed a bill that would impose a 10% tax on soybean exports. The proposal emulates policies applied in neighbouring Argentina, where higher-value added soymeal and soyoil exports are encouraged over raw bean via differential export taxation. Paraguay, the world’s fourth largest supplier of soy, currently is exporting most of its soy in unprocessed form. The proposed measure would support the country’s nascent soy-crushing industry and promote the exportation of higher value-added products. The bill still requires approval by the Lower House and by the President. Reportedly, farmers are opposed to the draft law, saying that export taxes would translate directly into lower farm gate prices.             "]
[2012,"December","PERU – fishmeal supplies:  Production in the world’s leading supplier of fishmeal is set to drop sharply this season following the government’s decision to drastically cut the official catch quota for the key fishing months of December 2012 and January 2013. Reportedly, cutting the allowance to the lowest level recorded in 25 years was unavoidable as warm water temperatures and controversial fishing practices risk depleting the population in particular of anchovy in the country’s fishing areas. Reduced export availabilities from Peru are expected to push international fishmeal prices upward."]
[2012,"December","THAILAND – coconut development policy:  Last year, the Thai government decided to liberalize the importation of coconut products, followed, earlier this year, by the introduction of state procurement of home-grown copra (at Baht 21 per kg for copra with ≤ 5% MC). The measures aimed at securing domestic supplies, while also encouraging local production. Now the government has presented a 5-year action plan for coconut with the objective to raise the nation’s average yield level and overall output, while reducing production costs."]
[2012,"December","THAILAND – mandatory biodiesel blending:  In November, the Thai government decided to raise the country’s mandatory blending rate to 5 percent (B5), up from 4 percent  in effect since late 2011. Originally planned for end 2011, the government preferred to delay B5 implementation several times due to seasonal shortfalls in domestic palm oil production that led to shortages in edible oil supplies. Finally, B5 has been approved, based on improved and  stable supplies of crude palm oil, which remains the principal biodiesel feedstock.         "]
[2012,"December","UNITED STATES – biodiesel consumption mandate:  The country’s petroleum industry urged the Environmental Protection Agency to reconsider its decision to raise the nation’s biodiesel consumption mandate for 2013 (see MPPU no. 41, Nov ’12), arguing that the costs associated with increased biodiesel requirements could outweigh the benefits, The sector also claimed  that fraudulent biofuel credits have plagued the system since last year, a situation that could inhibit the industry’s ability to meet the higher mandate."]
[2012,"December","ZIMBABWE – soybean production:  Reportedly, soybean production is attracting significant public and private funding in Zimbabwe, driven by rising demand for the crop and its by-products. Soybeans in the country are used in the production of cooking oil, livestock feed (especially for poultry) and a variety of edible foods high in nutritional value (e.g. soya milk, mince and bread). Farmers are reported to have switched from cotton to soybeans. Soybeans are said to grow well in the country, especially on red soils where fertilization requirements are relatively low. Although soybean seed is expensive, farmers are reported to break even with a yield level of 1.5 tons per ha."]
[2012,"December","Biofuel feedstock - Brassica carinata:  In Canada, government-backed work on industrial applications of carinata oil – the oil of a minor oilcrop belonging to the brassica family – has led to the development of carinata-based aviation fuel. The fuel has recently been tested on a civilian flight using 100 percent of the renewable product. Tolerant to cold,  heat and drought, carinata is said to thrive on marginal farmland not suited for other agricultural crops. Unpalatable for food uses, the plant oil lends itself as fossil fuel substitute."]
[2012,"December","Biofuel feedstock - Camelina sativa:  Additional public funding of research on camelina oil as biodiesel feedstock has been made available in the United States. The oilseed is believed to hold significant potential as a bio-energy crop in the Delta region. Planned research and outreach activities will focus on: (i) developing genetically transformed varieties suitable for the region, featuring high yield potential and other desirable traits; and (ii) analyzing the seeds oil/meal and optimizing processing technologies."]
[2012,"December","Specialty oil applications:  Two US companies formed a joint venture to produce renewable biosynthetic lubricant oils from high-oleic soy oil. Allegedly, the new products are well suited for various applications in the automotive and industrial lubricant sectors (as well as in the personal care and cosmetics field) and match or exceed the performance characteristics of the corresponding petroleum-based oils. The development is expected to enhance the market opportunities for high-oleic soybean varieties, whose full commercial launch is envisaged for the year 2014. The oil derived from high-oleic varieties is said to also provide benefits in food applications: compared to traditional soy oil it contains less saturated fat, while its higher oxidative stability means that it does not require hydrogenation, thus remaining trans fat free."]
[2012,"December","Certified sustainable palm oil - Preferential trade:  The Roundtable on Sustainable Palm Oil renewed its call to importing countries to grant preferential tariffs for certified sustainable palm oil. RSPO believes that the introduction of discounted rates by countries like China, India and the EU would go a long way towards stimulating production and trade in sustainably produced palm oil. Lower duties would help offset the additional costs associated with producing certified oil, making it competitive with non-certified produce. Currently, the premium commanded by certified produce is said to reduce demand in what are known to be very price sensitive markets. To persuade governments to grant preferential duties, RSPO intends to work through the various national industries. One market participant expressed concern that not all countries would benefit from the proposed policy: especially smaller countries that are distant from main import markets and where palm oil production is dominated by smallholders – who, typically, lack the means to obtain certification – could find themselves disadvantaged."]
[2012,"December","Certified sustainable palm oil - Indonesia certification status:  In spite of being the world’s leading producer of RSPO-certified palm oil in absolute terms, Indonesia appears to require more time to adopt certification on a wide scale. According to RSPO, to date only 12% of palm oil companies in the country (exactly 68 firms, including growers, processors and trading companies) have obtained certification, and only 3 million tons out of 25 million tons of palm produced in the country are certified. Many producers seem reluctant to recognize the demanding (but internationally respected) standards set by RSPO. Most market experts believe that, in a few years time, as international buyers start acquiring only certified produce, most producers will have little choice but to adopt RSPO standards. However, smallholder production, which accounts for around 40 percent of Indonesia’s total output, continues to pose challenges in that small independent growers cannot afford to hire auditing firms, a key requirement to obtain certification. Apparently, to address this issue, RSPO has set aside 10 percent of its income to help smallholders acquire certification and is currently working on specific procedures and modalities to assist such growers."]
[2012,"December","Rapeseed research:  A team of researchers in the UK informed that using biotechnology it has developed a rapeseed that yields 8% more oil than conventional material. Reportedly, to obtain the higher oil content, a naturally present enzyme responsible for oil breakdown during seed development has to be deactivated. The next step will be to transfer the technology from the laboratory to the field. Possibilities to apply the technology to other oilseeds will also be investigated."]
[2013,"January","ARGENTINA/SPAIN – trade in biodiesel:  According to official sources from Argentina, Spain has lifted its requirement that petroleum companies may only use EU-produced biodiesel to comply with the country’s mandatory blending requirements (see MPPU no. 35, May ’12). Allegedly, though not an outright import ban, Spain’s requirement severely curtailed access of foreign suppliers (notably from Argentina) to the Spanish market. Spain is said to have revoked its policy after Argentina filed a formal complaint at the WTO. "]
[2013,"January","CHINA – custom policies:  The government decided to lower several administrative custom fees for exports and imports of goods during 2013.  Reportedly, the measure is meant to reduce the burden of such charges on trading companies so as to stimulate trade growth. For some food products, including vegetable oils, the weight of the fees is set to be lowered from 0.4% of the good’s value to 0.08%.      "]
[2013,"January","CHINA – futures trading:  In an effort to help market participants manage price risks, the Chinese government authorized the launch of futures trading in rapeseed and rapeseed meal at Zhengzhou Commodity Exchange. Located in the north-central province of Henan, Zhengzhou is one of the country’s two trading platforms for futures in agricultural commodities. The exchange already trades in rapeseed oil futures. China is the world’s third largest producer of rapeseed and tops the list of rapeseed meal consumers."]
[2013,"January","CHINA/MALAYSIA – palm oil trade flows: Malaysian exporters expressed concern about the enforcement of China’s new quality standards on vegetable oil imports (see MPPU no. 42, Dec. ’12). To calm the industry, Malaysian officials informed that no more than five percent of shipments failed to meet the new specifications. The analysis of those shipments revealed that non-compliance was mostly related to the presence of free fatty acids. Reportedly, Malaysian requests for an extended enforcement grace period have been turned down by the Chinese authorities. China is the world’s second largest buyer of palm oil, with Malaysia as leading supplier. Traders are concerned that the enforcement of strict regulations by China could open the door for other palm oil importing nations to introduce similar requirements.     "]
[2013,"January","INDIA – vegetable oil import policy:  Prompted by the movement of global palm oil prices, the government decided to further reduce the base import price for refined palm olein to USD 872 per ton (see also MPPU no. 42, Dec. ’12). Base import values for other crude and refined oils were kept unchanged. The base price is used as reference price for assessing import taxes. Duties are assessed based on official reference values rather than prices reported by traders so as to check the loss of revenue in case of under-invoicing by importers. "]
[2013,"January","INDIA – edible oil consumption policies:  The central government confirmed that two long-standing consumer protection measures – i.e. nationwide distribution of imported edible oils at a subsidized price of Rs 15 per kg and the permission to impose stock limits on edible oils and oilseeds at state level – will remain in place until end September 2013. "]
[2013,"January","INDONESIA – palm oil export tax:  Based on  further decreasing international benchmark prices, during January, the export tax collected on crude palm oil will be 7.5% - as opposed to 9% applied in the two preceding months. The rates for the various other types of oil have also been lowered. The new tariff rates are the lowest recorded since November 2010."]
[2013,"January","INDONESIA – palm oil consumption:  Official forecasts put domestic palm oil consumption at 8.5 million tons in calendar year 2013, up 13 percent from the estimate for 2012. Sustained economic growth is seen boosting demand for the oil. If realized, the anticipated expansion in demand would make Indonesia the world’s largest consumer of palm oil, surpassing India. The increase concerns the whole spectrum of food and non-food applications, with the food and detergent industries as main drivers. The possible raise in the blending rate of palm oil-based biodiesel from the current 5 percent  to 7.5 percent would also contribute to the increase in consumption.        "]
[2013,"January","MALAYSIA – palm oil export tax:  In line with the country’s new export tax regime for crude palm oil (see MPPU no. 41, Nov. ’12), the recent fall in benchmark prices implies that the export tax will be set at zero during the month of January. When the reference export price rises above RM 2 250 per ton, a sliding export tax (ranging between 4.5 and 8.5 percent) is applied, whereas no duties are charged when prices fall below that level. The benchmark value used for determining taxation in January is RM 2 148. The temporary tax exemption is expected to stimulate exports and should help reduce the country’s palm oil inventories, which have risen to record levels over the last few months, causing a slump in prices."]
[2013,"January","MALAYSIA – oil palm replanting scheme:  The government confirmed the launch of a new replanting scheme worth RM 100 million (see MPPU no. 41, Nov. ’12). Meant to raise productivity levels through the improvement of the tree’s national age profile, the initiative is also driven by concerns about the recent swelling in domestic palm oil stocks and the ensuing plunge in prices. The envisaged replanting of 100 000 ha is expected to slow down growth in domestic palm oil output during an initial period of 4-5 years. Under the scheme, which is primarily targeted at independent smallholders, an incentive of RM 1 000 per ha will be provided for replanting operations including the purchase of quality seedlings."]
[2013,"January","THAILAND – oil palm farmer support:  In the last few years, the government introduced several measures to secure domestic supplies of edible oils so as to prevent retail prices from surging and thus protect consumers. However, with local farm gate prices for fresh fruit branches dropping below Baht 3 per kg in recent weeks (reportedly the lowest level in seven years), oil palm growers started to stage protests and urged the government to help boost prices. In response to these calls, the national palm oil policy committee convened and decided that a mandatory price range of Baht 4.00-4.35 shall apply to fruit purchases by palm oil factories throughout the country."]
[2013,"January","UNITED STATES – biodiesel tax credit:  US lawmakers decided to revive the USD 1,0 per gallon tax credit for biodiesel which expired back in December 2011. The incentive, which is now scheduled to expire at the end of 2013, will be applied retroactively to all of 2012, thus granting a windfall profit to the nation’s biofuel producers. Along with the revival of the biodiesel subsidy, the tax credit for biomass-based diesel as well as a special tax break granted to small agri-processors producing biodiesel has been extended. Furthermore, from this year also algae-based biodiesel is eligible for support. Biodiesel producers and soy farmers welcomed the extension of the subsidy. In recent years, roughly one fourth of total US soyoil output has been devoted to biodiesel production. Critics of public biofuel subsidies, on the other hand, pointed at the high economic and environmental costs associated with such programmes, questioning the effectiveness of such measures as a means to address climate change concerns. The problem is not unique to the United States. In the EU, the existing biofuel support schemes are currently being revisited due to concerns about their effectiveness and overall impact at local and global level."]
[2013,"January","Soybean seed royalties in Brazil:  Global seed company Monsanto informed that it will resume nationwide collection  of royalties for its ‘Roundup Ready’ soybean seed. The company had suspended collections throughout the country after a court in Mato Grosso state temporarily prohibited that practice (see MPPU no. 37, July ’12). Reportedly, the same court now ruled that collection of royalties could resume."]
[2013,"January","Recycling of used vegetable oils - Brazil:  The association of Brazilian vegetable oil industries (ABIOVE) signed an agreement with the São Paolo State Department of Environment to promote and regulate the collection  and recycling of used edible oils. The initiative aims at improving access to existing (and opening of new) voluntary delivery points and includes the implementation of environmental education programmes. Waste oils will be channeled to oleochemical and biodiesel producers. The 4-year project is expected to help reduce water pollution. Currently, the country counts  some 900 delivery point, concentrated in São Paolo State."]
[2013,"January","Recycling of used vegetable oils - McDonald’s Corporation:  The global foodservice retail company reported new efforts in Australia and the United Arab Emirates to recycle vegetable oil. Waste oils are collected from the company’s outlets, filtered and converted into biodiesel that is used to run the corporate truck fleet, thereby contributing to cut GHG emissions."]
[2013,"January","South-South cooperation:  Reportedly, the Chinese government agreed to help develop the coconut industry of Sri Lanka. Cooperation between the two countries would focus on the development of Sri Lanka’s coconut-based products with a view to enhance exportation of such goods to China. Technology transfer programmes and a variety of measures to improve trading activities will be considered. Coconut products said to be in high demand in China include coconut coir, fiber based products and activated carbon."]
[2013,"February","ARGENTINA – vegetable oil import duty: Argentina has implemented a MERCOSUR decision that allows member states to raise import tariffs for selected products above the levels established in the bloc’s common external tariff. The products selected by Argentina include vegetable oils, for which import duties will be raised from 10% to 35%. The tariff increase will remain in place for 12 months, although it can be extended through December 2014.      "]
[2013,"February","CHINA – rapeseed importation: Similar to the agreement reached with Canada last year (see MPPU no.33-Mar’12), China is now reported to consider removing a 3-year old ban imposed on rapeseed imports from Australia. The import restrictions were put in place in late 2009 due to concerns over fungal disease contamination. If an agreement was reached,  Australian rapeseed would only be allowed to enter non-rapeseed growing regions in China."]
[2013,"February","CHINA – soybean crushing industry: Private sources estimate China’s current soybean crushing capacity at 139 million tons per year, which compares to 100 million tons in 2010. Reportedly, state controlled enterprises such as COFCO, Sinograin and Chinatex have contributed strongly to the rapid expansion. Interestingly, the industry has grown despite severe problems of overcapacity: over the last few years, the average utilization rate is estimated to have ranged 60 % or lower. Reportedly, China’s National Development and Reform Commission actively supported state processing expansion projects in an effort to reduce the dominance of foreign-controlled enterprises and to exert better control over domestic edible oil supplies and prices. State-owned enterprises are now estimated to account for about one fourth of the country’s total processing capacity. Overall, foreign companies still account for the largest share of the industry, followed by state enterprises and then local private firms."]
[2013,"February","EUROPEAN UNION – biodiesel trade issues : Argentina/Spain dispute: Reportedly, Argentina has put on hold a complaint filed at the WTO against the European Union over Spain’s biofuel import policy (see MPPU 35-May’12 and 43-Jan’13). The decision was taken after Spain amended its import regulations, restoring access to the Spanish biofuels market. Argentina announced that it would closely monitor the application of the new regulations with a view to ensure that Argentine biodiesel can compete in the Spanish and EU markets in non-discriminatory conditions."]
[2013,"February","EUROPEAN UNION – biodiesel trade issues : EU import monitoring: On January 30th,  the European Commission introduced EU-wide mandatory registration of biodiesel imports originating from Argentina and Indonesia. Related to the bloc’s on-going anti-dumping and anti-subsidy investigations (see MPPU no. 41, November 2012), the initiative is meant to ensure that future countervailing duties can be levied retroactively in case such policy is introduced. Where blends are imported, importers are obliged to specify the biodiesel content in the blends. The registration measure will remain in force for nine months. The bloc’s biodiesel industry is confident that a decision on provisional duties will be taken in the next few months."]
[2013,"February","INDIA -  vegetable oil import duty: Encouraged by easing food prices and reduced inflation rates, the government decided to reintroduce import duties on crude vegetable oils and to lift a six-year old  freeze on the taxable value of cargoes. The import tariff, which had been suspended in 2008 to curb domestic food price inflation, has been fixed at 2.5% and might be raised further later this year. The benchmark prices used to calculate tax collection have been lifted from USD 447 per ton to USD 802 in the case of crude palm oil, and from USD 580 to USD 1 190 for soybean oil. The tariff values are going to be reviewed on a fortnightly basis with a view to align them with international price movements. The government’s new trade policy aims at protecting local farmers and maintaining production incentives. In fact, growing importation of low-priced palm oil is believed to have discouraged domestic production, in particular of palm oil. Especially Malaysia’s new export policy (see MPPU no. 41-Nov’12 and no.43-Nov’13) could harm Indian producers. With regard to refined vegetable oils, import charges have been left unchanged at 7.5%, supposedly reflecting government concerns about new retail price hikes. Consequently, the duty differential between crude and refined oil has fallen from previously 7.5% to 5%, which is expected to hurt the domestic refining industry. Reportedly, representatives from the private sector are calling for both, additional increases in tariff rates as well as a tax differential of no less than 10%, so as to fully protect the interests of both growers and refiners."]
[2013,"February","INDIA – vegetable oil export policy: While the country’s ban on bulk exportation of edible oils remains in place, shipment of premium edible oils in branded consumer packs of up to 5 kg has been liberalized further in that such sales will no longer be subject to a quantitative ceiling of 20 000 tons per year. However, in order to check exportation of low-priced edible oils (which account for the bulk of domestic consumption), a fixed minimum export price of USD 1 500 per ton will be applied. Subject to periodic calibration, the minimum price is expected to be used as a flexible instrument to regulate export flows. At current price levels, only exports of groundnut and sesame oil should be viable. In the past, exports in consumer packs concerned groundnut, rapeseed and coconut oil, with most shipments directed to the United States, Middle East and Europe to meet the needs of expatriate Indians. With respect to coconut oil, the government has lifted the restriction that shipments could only leave from the port of Kochi.       "]
[2013,"February","INDONESIA – biofuel policy:  Reportedly, in an effort to further stimulate domestic consumption of palm oil-based biodiesel, the government raised the biodiesel distribution subsidy from Rp 2 500 to 3 000 per liter, effective this year. The subsidy was introduced in 2009, when it amounted to Rp 1 000 per liter. Furthermore, the government is expected to announce a new formula for determining biofuel prices, which would ensure that renewable fuel production remains profitable.  "]
[2013,"February","INDONESIA – palm oil exports - Taxation:  Based on new firmness in international benchmark prices, during February, the tax Indonesia collects on crude palm oil exports will return to 9% (compared to 7.5% applied in January), marking the first tax increase in nine months. The tax applying to refined palm oil has been set at 3%, compared to 2% last month. "]
[2013,"February","INDONESIA – palm oil exports - Export policy: It would appear that recent policy measures introduced by key trade partner India (i.e. imposition of import tariffs) and main competitor Malaysia (i.e. suspension of export taxes) could harm Indonesia’s palm oil exports. However, Indonesia is said not to plan countervailing policy moves. The government seems determined to maintain the current export tax regime, which it considers to be effective in promoting growth in downstream sectors: according to government officials, the refining industry’s capacity utilization rate has risen from 70% in 2011 to 90% at present. Furthermore, policy makers plan to maximize the absorption of crude palm oil for domestic biodiesel production. In addition, local palm oil producers are expected to invest in storage capacity so that, in the event of unfavourable market conditions, larger quantities may be sent to store. Meanwhile, representatives from the private industry have urged the government to make adjustments in the country’s sliding tariff scale: they believe that lower tariff levels are needed to restore the country’s competitive position vis-à-vis Malaysia."]
[2013,"February","INDONESIA – soybean import duty: Last month, Indonesia reinstated its 5% duty on soybean imports. The tariff had been suspended during August-December 2012 in an effort to ease the impact of high international prices on local markets (see MPPU no.39-Sep’12). The duty’s reintroduction was triggered by the gradual weakening in international soybean quotations. During the last years, the government repeatedly decided to suspend the duty with a view to check rises in domestic prices for tempe and other soy-based foods.                    "]
[2013,"February","MALAYSIA – palm oil export tax: Despite the recent recovery in the relevant benchmark prices, the country’s export tax on crude palm oil is reported to remain at zero for the month of February. The second consecutive month of duty exemption should further stimulate exportation, thus helping to curb the country’s record stockpiles."]
[2013,"February","MALAYSIA – biodiesel consumption: With a view to check the rise in domestic palm oil inventories, the government plans to expedite implementation of the country’s B5 programme (i.e. mandatory blending of diesel fuel with 5% of palmoil-based biodiesel) at the national scale, while moving towards B10 by the end of 2013. Currently, the B5 blending requirement only applies to the three central states of Peninsular Malaysia, absorbing no more than 200 000 tons of palm oil per year. Nationwide B5 implementation is estimated to translate into an annual requirement of 500 000 tons of palm oil.  "]
[2013,"February","THAILAND – palm oil market support: Reportedly, excess supply caused by unusually wet weather combined with weak domestic demand has ramped up palm oil inventories at the country’s extraction plants and refineries. To stem the resulting fall in farm gate prices the government accepted to take palm oil into public stock. The Public Warehouse Organization is said to be ready to buy 50 000-100 000 tons of palm oil at Baht 25 000 per ton, which would allow mills to purchase palm fruits from farmers at Baht 4.0-4.5 per kg. Only small individual farmers (owing a maximum of 8 hectare) are allowed to participate. Reportedly, public reserves will be utilized (i) for distribution under the government’s low-price Blue-Flag Programme, (ii) for the production of biodiesel, (iii) in power plants, fishing boats and agricultural machinery, and (iv) for export.  "]
[2013,"February","UNITED STATES – farm legislation: The 2008-12 Farm Bill that expired last September has been extended for nine months, i.e. through the 2013 crop growing season. The extension allows farmers to know the relevant policy parameters while making planting decisions and ensures that critical foreign market development operations can continue. However, funding of 37 programmes is said to stop due to the lack of clear spending projections. The latter comprise conservation provisions and various emergency relief measures.     "]
[2013,"February","VIETNAM – import policy: According to Reuters, Vietnam is considering charging ‘emergency import tariffs’ on refined soybean oil, palm olein and palm stearin so as to prevent rising imports from hurting domestic producers. Emergency tariffs, also defined as ‘safeguards measures’ in WTO, are meant to protect a specific domestic industry from a sudden rise in imports which is causing, or threatening to cause, serious harm to the industry. According to data submitted by state-owned trade company VOCARIMEX, the recent rise in imports has led to a sharp decline in domestic production, productivity and profits. "]
[2013,"February","Biodiesel and respiratory health:  According to a group of Australian scientists, biodiesel emissions contain compounds known to cause respiratory problems. The biologically active compounds are defined as reactive oxygen species. The research team believes that the discovery could lead to restrictions in the use of biodiesel within the transportation industry. Reportedly, the researchers are now looking at ways to obtain biodiesel fumes free of the compound by studying how the compounds form and how they can be eliminated."]
[2013,"February","Biodiesel use as aviation fuel:  Dutch airline KLM, which started using biofuel on commercial flights in 2011, informed that it plans to raise its biofuel use to 1% of its total fuel consumption by 2015, provided this can be achieved in a sustainable manner. Reportedly, the carrier focuses on second generation feedstock and strictly adheres to the standards issued by the Roundtable on Sustainable Biofuels. Prior to their use, all feedstock undergo a lifecycle analysis. Main challenges are said to include insufficient availability of suitable feedstock, the need to reduce the price premium over conventional aviation fuel, and the absence of a level playing field in the aviation sector. To overcome these problems the company fosters cooperation in the fields of supply chain development and new conversion technologies, while also seeking support from national and EU governments.            "]
[2013,"February","GHG footprint of soyoil-based biodiesel: According to new analyses published by Brazil’s Association of Vegetable Oil Industries (ABIOVE), emission savings of locally produced soyoil-biodiesel (relative to fossil diesel) amount to 70% in the case of domestic consumption and 65-68% when the product is shipped to Europe. Reportedly, calculations are based on scientific methodologies and include life-cycle analyses. For comparison, the default emission reduction values used for soyoil-based biodiesel under the United States RFS2 and European Union RED policies amount to, respectively, 57% and 31%."]
[2013,"February","Biofuel feedstock camelina sativa:  In the United States, additional public funding has been granted for research on camelina oil as feedstock for energy and other bio-based products. The grant aims at enhancing the value of non-edible oilseeds as resource for biofuels, chemicals and bio-products, while ensuring minimal negative impact on food crop systems and the environment. According to previous studies, camelina oil-based aviation fuel cuts GHG emissions by almost 80% compared to conventional jet fuels."]
[2013,"February","Certified sustainable palm oil: India, the world’s leading importer and consumer of palm oil, is reported to show increasing interest towards sustainably produced palm oil. Reportedly, the number of Indian trading and processing firms belonging to RSPO (Roundtable on Sustainable Palm Oil) has increased over five times between 2011 and 2012, comprising leading market players – a trend indicating rising awareness of the benefits associated with sustainable palm oil. RSPO welcomed this development, underlining that India is a critical market with a global footprint and therefore has the potential to influence market transformation across the world. Multinational firms operating in India are said to have contributed strongly to this process by stimulating their Indian counterparts."]
[2013,"February","Certified sustainable soybean: For the year 2012, the Roundtable on Responsible Soy Association (RTRS) reports certification of almost 1 million tons of soybeans, compared to a volume of 450 thousand tons in 2011. Certification based on RTRS’ standard for responsible soy production started in June 2011 and is now concentrated in Argentina, Brazil, India, Paraguay and Uruguay. First certification requests have been received from Bolivia and China. Reportedly, out of the produce certified in 2011 some 90% was actually taken up by the market; information for 2012 is not yet available. The RTRS target for 2015 is to reach 5 million tons of certified soy to match growing demand for certified product from feed and food companies in Europe.                 "]
[2013,"February","GM soybean – Brazil: Private sources estimate that GMO soybean varieties account for 89% of the Brazil’s 2012/13 crop, compared to 83% in 2011/12 and 73% in 2010/11. Reportedly, conventional, non-GM varieties continue to be used by farmers catering for the niche market for conventional beans especially in Europe, where buyers are willing to pay a premium for traditional varieties."]
[2013,"February","Jatropha toxins: Grown in sub-tropical and tropical regions, jatropha curcas has gained increasing attention for the use of its non-edible oil as feedstock for biodiesel production. Reportedly, in the United States, the food industry has been officially notified of hazardous toxins contained in parts of the plant. Found primarily in glycerin and protein by-products, the toxic compounds can also be detected in the plant’s oil. Although unaware of any intentional substitution or contamination in food products from the jatropha plant, US authorities invited suppliers and manufacturers to take appropriate steps to prevent the use of ingredients that might be intentionally or otherwise adulterated with jatropha."]
[2013,"February","Fat consumption tax: In October 2011, Denmark was the first country to introduce a tax on fat consumption meant to address growing obesity and cardiovascular diseases problems affecting its population. The across-the-board tax applied to all foods with a saturated fat content above 2.3%. Reportedly, last November, after just one year, lawmakers in Denmark decided to repeal the tax. Allegedly, the tax was withdrawn because it did not produce the desired changes in people’s eating habits, apart from unduly increasing companies’ administrative costs and negatively affecting consumers’ buying power. Supporters of the tax said that one year was too short a period to be able to assess the measure’s effectiveness and impact."]
[2013,"April","CANADA – agricultural sector support - Federal support programmes:  Under Canada's new agricultural policy framework ‘Growing Forward 2’, three new, application-based support programmes have come into effect in April. The AgriMarketing Program is designed to help industry improve its capacity to adopt assurance systems, such as food safety and traceability, to meet consumer and market demands. The scheme also supports branding and promotional activities. The AgriCompetitiveness Program supports investments that help the agricultural sector adapt to rapidly changing and emerging global and domestic opportunities, respond to market trends and enhance business and entrepreneurial capacity. And the AgriInnovation Program focuses on investments to expand the sector's capacity to develop and commercialize new products and technologies. The country’s rapeseed (as well as soybean) industry is expected to benefit from all three programmes. Rapeseed is Canada’s leading crop in terms of farm-gate income generation, ahead of wheat.   "]
[2013,"April","CANADA – agricultural sector support - On-farm biosecurity standard: A new voluntary standard to control major plant pests and diseases in grain and oilseed cultivation has been launched in Canada.  Jointly promoted by concerned government agencies and private sector bodies, the new guidelines intend to complement existing farm-level biosecurity. Better management of on-farm risks is expected to help farmers stay competitive in the market. The detrimental effects disease attacks can have on trade flows were experienced recently when China restricted the importation of Canadian rapeseed following the detection of blackleg contamination. \n"]
[2013,"April","CANADA – agricultural sector support - Farm insurance: The federal and provincial governments raised their assistance to farmers in Manitoba – the country’s third largest rapeseed region –  by increasing the coverage offered and areas included under the provincial crop insurance programme. In 2013, insurance availability will also cover, on a test basis, soybeans and sunflower seed. Government officials pointed out that production insurance remains the foundation of strong on-farm risk management. "]
[2013,"April","CANADA – biofuel support policies:  Reportedly, the Canadian government plans to terminate biofuel production subsidies once its Ecoenergy for Biofuels programme (launched in 2008) expires in 2017. While biofuel production has been praised as a means for Canada to reduce its GHG emissions, official sources stated that the country’s rapeseed and animal fat-based biodiesel industry has not been able to meet the national 2% blending target, creating the need to also import biodiesel. The petrol industry complained that domestically produced biodiesel often does not meet the specifications required for blending, forcing them to export biodiesel. While the government stopped accepting new applications for support in 2010, commitments for the 24 existing projects are going to be honored. Furthermore, the government is committed to preserve funds under its NextGen Biofuels programme. Industry sources informed that the termination of subsidies will make it impossible for domestic biodiesel producers to meet the national B2 mandate, which requires annual production of about 600 million tons. "]
[2013,"April","CHINA – agricultural policy: In its recently released annual policy statement, the government committed to continue promoting self-sufficiency in grains (excluding oilseeds) as one of the means to tackle rural poverty and food insecurity. Related farmer support and protection measures include increased minimum support prices for wheat and rice, while public stockholding operations will continue to concern maize, soybeans, rapeseed, cotton and sugar.                 "]
[2013,"April","CHINA – rapeseed importation:  Reportedly, China is considering to remove all restrictions  on rapeseed imports, which were put in place in late 2009 to address concerns over fungal disease contamination. Complete removal of the bans would reinstate shipments to the nation’s major rapeseed growing regions. Canada and Australia had recently been allowed to resume shipments, but only to selected ports in non-rapeseed growing coastal regions (see MPPU no. 33 Feb’12 and no. 44 Mar’13). "]
[2013,"April","CHINA – public stock releases - Rapeseed oil:  In March, the government started offering rapeseed oil from public reserves to increase domestic supplies and stabilize prices. So far sales are said to have been very small due to unattractive base prices ranging Yuan 10 200–10 700 per ton. Reportedly, the government was planning to sell a total of one million tons between March and July this year, thus releasing old stocks and making room for this year’s harvest."]
[2013,"April","CHINA – public stock releases -  Soybeans:  The government has offered 1–1.5 million tons of soybean from state reserves to ease growing domestic supply tightness after port congestions in Brazil interrupted the flow of imports to the country. The soybeans offered are said to be part of the government’s stockpiles of imported material. Reportedly, due to recent shipment delays, importers considered to cancel up to 2 mill tons of Brazilian soybean cargoes.  "]
[2013,"April","FIJI – coconut development:  Reportedly, the government is committed to rehabilitate the country’s coconut industry in particular through the encouragement of planting and replanting activities using improved seedlings. Support measures will include the distribution of subsidies to farmers that use high performance planting material."]
[2013,"April","INDIA – vegetable oil import duty:  Since the government’s decision to regularly review tariff values for vegetable oils (see MPPU no. 44,  Feb ’13), the reference prices used for calculating import levies have been raised repeatedly to reflect rises in international benchmark quotations. The adjustments are expected to curb the nation’s vegetable oil imports, which have risen to record levels in recent months."]
[2013,"April","INDIA – coconut cultivation and marketing - Integrated farming:  National research officials underscored the need to adopt coconut-based integrated farming methods to achieve productivity gains and enhance sustainability in coconut cultivation, especially among small and marginal holdings. The introduction of suitable crops between coconut palms and integration with other enterprises such as dairying were recommended to reduce economic risks and uncertainties caused by rapid price fluctuations.  "]
[2013,"April","INDIA – coconut cultivation and marketing - Copra procurement:  In Tamil Nadu, small coconut producers will receive assistance to market their copra under a government-backed initiative implemented by the local Cooperative Marketing Federation."]
[2013,"April","INDIA – coconut cultivation and marketing - Coconut oil exports:  The government’s decision to allow shipments through all ports, combined with the removal of the 20 000 tons limit for exports of branded edible oils (see MPPU no. 44, Feb ’13) should help raise the country’s exports of coconut oil, according to the country’s Coconut Development Board. The Board has set an export target of 150 000 tons for this season (up from less than 10 000 tons shipped during the last season). The target aims at catering to the demand of Indian expatriates in the Middle East and elsewhere. "]
[2013,"April","INDONESIA – soybean market regulation:  Reportedly, a state-controlled company is ready to build buffer stocks for soybeans with a view to ensure domestic supplies and stabilize consumer prices for soy-based food products. The company also plans to enter soybean production, aiming at an annual output of 100 000 tons. Currently, nationwide production amounts to around 800 000 tons, while another 1.9 million tons of imports are needed each year to satisfy domestic demand. Reportedly, to promote the interests of local producers and actively encourage domestic production, the government is also planning to link traders’ soybean imports to the volume of soybeans they buy from domestic sources. Floor and ceiling prices for such local purchases would be set by the government. Notwithstanding, the soybean self-sufficiency target set for 2014 seems to be out of reach, primarily due to a shortage of convertible arable land. According to official sources, achieving the target would require a near doubling of the nation’s current soybean area of  600–700 thousand hectares. "]
[2013,"April","INDONESIA – palm oil exports tax:  Based on firming international benchmark prices, the tax collected on crude palm oil exports during March as well as April will be 10.5% (compared to 9% and  7.5%  applied in, respectively, February and January). The tax for refined oil and refined palm olein have been set at, respectively, 2% and 4%."]
[2013,"April","ISLAMIC REPUBLIC OF IRAN – public food distribution:  Reportedly, Iran’s parliament has endorsed a draft plan under which the nation’s most vulnerable groups would receive subsidized staple foods – including rice, vegetable oil and meat – to offset the gradual erosion of their purchasing power. Plan details still need to be discussed before a final version can be approved. The government pointed out that there was no shortage of basic foodstuffs in the country. "]
[2013,"April","MALAYSIA – export tax:  Due to rising benchmark prices, from March onward, crude palm oil exports are subject to an export tax of 4.5 percent – following two months of zero taxation, which pushed up the country’s shipments and helped reduce stockpiles. The relatively low new tax rate – compared with the 23 % tariff in place until December last year and with Indonesia’s current rate of 10.5% – is not expected to slow down shipments markedly. Meanwhile, domestic palm oil refiners should benefit from a slight reduction in feedstock prices."]
[2013,"April","MALAYSIA – palm oil-based biodiesel:  After announcing nation-wide implementation of 5% mandatory fuel blending last January, the government is planning to move to B10 (10% mandatory blending) by mid 2014. Meanwhile, last month, B10 blends have already been introduced at the armed forces, the capital’s city hall and at the Malaysian Palm Oil Board. In addition to pursuing environmental objectives, the policy aims at increasing palm oil usage in the domestic market and contributing to price stabilization. The same objectives are pursued by the recently announced creation of a partly state-owned biodiesel consortium. The consortium, which includes plantation and biodiesel companies as well as other investors, is expected to absorb one million out the country’s current 2.5 million palm oil stockpile. Reportedly, the consortium is poised to attract substantial government subsidies, the level of which will depend on the market price for palm oil."]
[2013,"April","MALAYSIA / EUROPEAN UNION – palm oil trade:  From January 2014, Malaysia’s exports are bound to lose the preferential treatment enjoyed under the EU’s GSP trade scheme (General System of Preferences). Now deemed an upper middle class nation, Malaysia will have to give up its GSP status and, as a result, Malaysian palm oil exports are bound to be taxed 3.8 – 6.5%  (depending on the level of refining). Meanwhile, palm oil imports from Indonesia, Malaysia’s main competitor, would continue to enjoy GSP privileges, possibly gaining in competitiveness. On the other hand, since 2010, Malaysia and the EU are in talks over a general free trade agreement, which, if concluded successfully, is expected to maintain Malaysian palm oil shipments to the EU free of duty. Last year, sales to the EU accounted for about 13% of Malaysia’s total palm and palm kernel oil exports. "]
[2013,"April","UKRAINE – domestic sunflower prices:  The minimum prices for sunflowerseed, oil and meal have been adjusted downward in March to reflect weakening domestic market prices. Sunflower seed was added to the list of products whose prices can be temporarily regulated by the state in late 2008."]
[2013,"April","UKRAINE – crop insurance:  The government continues to promote the use of crop insurance by farmers. Already in place for arable winter crops (notably wheat), state subsidization of insurance costs is going to be extended to maize, soybean and sugar beet starting this spring. "]
[2013,"April","UNITED STATES – crop insurance:  Regulators have agreed to adapt the federal crop insurance programme to the specific needs of high-oleic rapeseed growers. Recently introduced high-oleic rapeseed varieties produce a naturally stable oil that does not require hydrogenation or  modification, thus allowing to avoid the presence of trans fatty acid in food products. In the country’s Northern Plains region about 25 percent of the rapeseed grown is reported to belong to the group of high-oleic varieties.           "]
[2013,"April","Private-public-partnerships in the coconut sector:  Two new public-private-partnerships to strengthen smallholder coconut farming have been launched in the Philippines and in Indonesia. Combining the strengths of public and private partners offers important opportunities, according to APCC (the Asian and Pacific Coconut Community), which has challenged its 16 member nations to encourage private stakeholders to form alliances with relevant government agencies and local organizations.  In the Philippines, a new partnership has been forged – between the country’s Coconut Authority (PCA), Germany’s international cooperation agency GIZ, private companies BASF and Cargill, as well as local farmer cooperatives – with the objective to develop a sustainable certified coconut oil supply chain. The project’s principal goal is to promote sustainable economic development in the coconut industry, especially among smallholder coconut growers. Planned activities comprise (i) training on good agricultural practices, (ii) the improvement of copra drying methods and hence of coconut oil quality, (iii) the introduction of standards that will serve as a basis for certification, and (iv) improved access to health care for small coconut farmers. The project is expected to raise farmers’ incomes by improving productivity, product quality and marketability, as well as to improve growers’ livelihoods. "]
[2013,"April","Private-public-partnerships in the coconut sector:  Two new public-private-partnerships to strengthen smallholder coconut farming have been launched in the Philippines and in Indonesia. Combining the strengths of public and private partners offers important opportunities, according to APCC (the Asian and Pacific Coconut Community), which has challenged its 16 member nations to encourage private stakeholders to form alliances with relevant government agencies and local organizations.  In Indonesia, a new public-private alliance brings together the local government and extension offices, the country’s Palm Research Center, Cargill and Winrock International. Through a variety of interventions, also this project aims at enhancing the sector’s sustainability as well as improving the livelihood of small coconut growing families.      "]
[2013,"April","GMO issues -  GM crop expansion:  According to latest estimates by ISAAA (International Service for the Acquisition of Agri-biotech Applications), global commercial cultivation of GM oilseeds – notably soybean and rapeseed – continued to expand in 2012. Reportedly, in the case of soybeans, GM varieties accounted for 81% of global planted area, while for rapeseed the corresponding percentage was 30%. "]
[2013,"April","GMO issues - New GM soybean variety – South America:  Reportedly, Monsanto is prepared to launch its new high–yielding generation of GM soybeans (Intacta RR2 Pro) in Brazil in time for the region’s next season. Reportedly, the new variety, which recently has been cleared for sale also in Paraguay, has been developed exclusively for South America and will be launched directly in the concerned countries to avoid disputes over royalty payments. Monsanto is said to have agreed to waive, starting next year, the collection of royalties for the preceding generation of seeds (Roundup Ready RR1) so as to facilitate the transition to the new technology. Meanwhile, the new variety’s approval by China, which absorbs 70 percent of Brazil’s crop, is reported to be still outstanding (see MPPU no. 39 Sep’12 and no. 41 Nov ’12). "]
[2013,"April","GMO issues - GMO trade USA–EU:  According to an EU official, the bloc’s regulations on  GM crops would not change as a result of the forthcoming USA–EU negotiations about a free trade agreement. The EU’s strict regulations are based on precautionary principles and impose a heavy burden of proof before GM crops are cleared for import or cultivation. Considering that US grain and oilseed exports – which consist predominantly of domestically approved GM material – have long been affected by the EU’s restrictive policies, the main US agricultural groups have made it clear that they would oppose an agreement that did not address regulatory differences."]
[2013,"April","GMO issues - Voluntary GMO labeling – United States:  Whole Foods Market, a grocery chain specialized in organic products, announced that all its products will be required to carry a label indicating if they contain GM ingredients. Reportedly the first US case of voluntary labeling, the initiative is likely to reinforce on-going efforts to introduce nationwide mandatory labeling (see also MPPU no. 30 Dec. ’11 & no. 36 June ’12). While consumer-driven efforts are reported from several states to require some form of labeling, leading biotechnology and food manufacturing companies have resisted such moves, arguing that labeling would be misleading, drive up food prices and open the door for lawsuits against farmers. Currently, an estimated 60–70% of all processed foods in a typical American grocery store are said to contain GM ingredients, and a large portion of the soybeans and maize consumed in the country comes from GM sources. At the global level, the number of countries where GM labeling has been regulated has grown in recent years. Interestingly, in those countries, the actual number of GM-labeled products is reported to be relatively small, as food manufacturers seem to seek out non-GM ingredients so as to avoid labels that could trigger consumer concern.  "]
[2013,"April","Sustainable palm oil certification - Indonesia:  In preparation since 2010, government-backed ISPO (Indonesian Sustainable Palm oil) certification eventually seems to have taken off. So far, a total of ten companies are reported to have been certified, while seven more are said to await certification. The government confirmed that ISPO certification is due to become mandatory for all oil palm plantations and mills operating in the country. However, considering that hundreds of companies are  involved, the deadline for the scheme’s full implementation has been set to December 2014. Launched as an alternative to the globally recognized RSPO (Roundtable on Sustainable Palm Oil) certification, Indonesia’s system examines and regulates oil palm firms, requesting them to adopt green standards and sustainable practices. By the end of last year, five certification bodies had been appointed by the ISPO Commission to carry out the certification, while eleven more were awaiting accreditation. Reportedly, companies that comply with ISPO rules are eligible for cuts on bank interest rates and export taxes. By contrast, planters that fail to secure ISPO certification within a stipulated period risk to have their licenses revoked."]
[2013,"April","Sustainable palm oil certification - Malaysia:  In Malaysia, where no national certification scheme has yet been enforced, the country’s oil palm industry actively participated in the development of the globally used RSPO (Roundtable on Sustainable Palm Oil) standard and certification, which became the basis for voluntary certification in the country. However, very recently two national certification schemes have become available: MSPO (Malaysia Sustainable Palm Oil) developed by Malaysia’s Palm oil Board (MPOB), and MARESPO (Malaysian Responsible Palm Oil) promoted by the Malaysian Palm Oil Council (MPOC). In general, independent observers have drawn attention to possible credibility issues when national standards and to the advantages of using a single, harmonized and globally recognized certification scheme. Concerns have also been expressed about the relatively slow take-off of RSPO certification thus far."]
[2013,"April","Sustainable palm oil certification -  EU demand for certified edible oil:  The availability of certified edible oil – palm oil as well all other vegetable oils – can be expected to become increasingly important over the next 1–2 years as far as the European market is concerned: based on new EU food labeling regulations (adopted back in 2011),  from December 2014 onwards, food manufacturers will be required to specify the type of vegetable oils contained in a product. With the introduction of this measure, consumer perceptions about the environmental credentials of individual edible oils can be expected to gain relevance, which in turn should raise the industry’s interest in product certification. With respect to palm oil, for example, several international buyers already committed to exclusively source certified, fully traceable produce."]
[2013,"April","Sustainable palm oil certification - Industry sourcing:  Global coffee-house chain Starbucks decided to become a member of RSPO and committed to purchase all of its palm oil from certified sustainable suppliers by the year 2015. Starbuck joins a growing list of  companies that pledged to only use certified produce. Unilever, Nestle, Procter & Gamble, General Mills as well as several UK food industry groups are part of that list. "]
[2013,"April","Biodiesel production - Iran:  Reportedly, the country’s first biodiesel production plant is ready to go on-line in Isfahan province. The plant has an installed capacity of 12 000 thousand tons per year and plans to use primarily jatropha oil as feedstock. Furthermore, government plans to promote the use of food processing wastes as feedstock have been reported. "]
[2013,"April","Biodiesel production - Saudi Arabia:  The country’s first biodiesel plant is expected to be commissioned by the end of this year. Reportedly, the plant will rely exclusively on used cooking oil as feedstock. "]
[2013,"April","Biodiesel production - Cuba:  Five new biodiesel plants are being built in the country with assistance from the Swiss Agency for Development and Cooperation. The new facilities are expected to use jatropha oil as feedstock. Reportedly, in the country jatropha is increasingly grown in association with food crops rather than in traditional monoculture plantations."]
[2013,"April","Biodiesel production - Brazil:  Foreign firms are reported to continue investing in soyoil-based biodiesel production facilities in the state of Mato Grosso, reportedly banking on rising domestic demand, rather than growing export opportunities. By contrast, additional investments in sugarcane mills are said to be unlikely, given falling ethanol production margins. "]
[2013,"April","Biofuel certification for smallholders:  A report issued by FAO warns that small farmers risk exclusion from biofuel certification schemes. In recent months, several voluntary, largely privately-operated certification schemes have become available to assist individual producers document the environmental credentials of agro-based fuels and thus improve their access to consumer markets. Reportedly, these schemes tend to be organized in a way that makes it difficult for smallholder producers – notably in developing countries – to participate in export markets. Predominantly designed for use by large-scale agro-industrial firms, currently available certification schemes are data and information-intensive and involve costs or require capacities that tend to be out of reach for smallholders. To increase certification uptake among smallholders, the report encourages governments and international organizations in producing and consuming  countries to establish complementary mechanisms to create an enabling environment. One way to reduce costs for smallholders would be to promote local inspection bodies, as these involve lower costs for producers, are better able to conduct spontaneous examinations and are generally better informed about local conditions and on-site requirements. "]
[2013,"April","Biodiesel feedstock developments -  Flaxseed oil – Canada:  Reportedly, a Canadian company is pioneering the use of flaxseed oil as biodiesel feedstock. The biodiesel produced is said to fully meet stringent quality requirements. Traditionally, flaxseed oil has been used for a variety of industrial applications and much less for edible purposes, while the meal is used as animal feed. The company, which made it a point not to use government subsidies, counts on expanding its biodiesel activity within the country as well as internationally. "]
[2013,"April","Biodiesel feedstock developments - Camelina oil – United States:  The US Environmental Protection Agency (EPA) approved camelina oil as a biodiesel feedstock. According to EPA’s evaluation, camelina oil-based diesel meets the 50% GHG reduction threshold required to qualify as ‘biomass-based diesel’ or ‘advanced fuel’ under the US bioenergy policy. Possible uses include transportation fuel, jet fuel as well as heating oil. In recent years, camelina oil has been extensively studied by the US military as a biofuel blendstock. "]
[2013,"April","Biodiesel feedstock developments - Jatropha:  Adaptable to marginal agro-ecological conditions, in recent years jatropha curcas attracted growing attention worldwide as a potential biofuel feedstock. However, the circumstance that only wild populations with uncertain yield performance levels were available for seed purposes hampered the crop’s commercial take-off. Now a US energy crop company has confirmed jatropha’s significant genetic diversity, which is said to make the plant well-suited for major performance gains. The employment of modern molecular and genetic techniques is expected to allow the creation of elite hybrid seeds – characterized by higher yields, improved plant health, and increased stress tolerance – within a relatively short period of time.           "]
[2013,"April","Derivatives markets:  The CME Group announced a reduction of grain and oilseed trading hours at CBOT, Chicago, both on the floor and on its electronic trading platform. Reportedly, the adjustment was decided based on extensive customer surveys. "]
[2013,"June","ARGENTINA – WTO complaint against EU biodiesel import policies:  Argentina filed a new WTO complaint against the European Union concerning its biodiesel importation and marketing policies as well as support provided to the bloc’s biodiesel industry (see also MPPU Feb’13). The complaint refers to support measures that, while geared at promoting renewable or “green” sources of energy, could be in violation of several WTO rules. Unless the contentious issues are resolved through bilateral consultations within two months, Argentina may request the WTO to set up a dispute panel. Though formally separate, observers consider Argentina’s initiative to be related to a recent EU investigation, that just led to the imposition of anti-dumping duties on biodiesel entering the EU from Argentina and Indonesia."]
[2013,"June","ARGENTINA – biodiesel consumption:  Formerly fixed at 7 percent, between April and June, mandatory blending of diesel fuel with soyoil-based biodiesel will be raised by one percent each month until it reaches 10 percent. Mandatory blending was introduced in 2010 with the objective to reduce national outlays on fossil fuel imports as well as to support domestic soyoil consumption thus reducing the country’s dependence on soyoil exports. Reportedly, while the shift to a higher blending rate was already planned, the shift to the higher has been accelerated by a recent fire that damaged an important refinery, leading to a temporary surge in crude oil imports. The higher blending rate should lift domestic biodiesel consumption to around 1.4 million tons per year. Increased local demand is said to help the country’s biodiesel industry, which in recent months has been increasingly suffering from overcapacity and falling export demand (see also MPPU Sep’12).    "]
[2013,"June","ARGENTINA – royalty payments for GM seed:  The government confirmed its plan to introduce legislation that secures the right of seed companies to protect their genetic modification technologies, notably by permitting the collection of royalties (see also MPPU Sep’12). In the absence of an appropriate regulatory framework, bio-tech companies could refrain from introducing advanced seed material, meaning that the country would fall behind competitors like Brazil. Under the proposed law, family farms operating small to medium-sized holdings would be exempt from paying royalties. "]
[2013,"June","BRAZIL – improving port infrastructure:  In recent years, the country’s deficient road, rail and port infrastructure has been struggling more and more to handle the country’s rapidly growing agricultural crops (including soybeans), leading to major shipping delays and surges in transportation cost – a situation that threatens the competitiveness of the country’s exports. With regard to Brazil’s ports, the existing terminals’ capacity has proven to be insufficient and handling charges are reported to be among the highest in the world. To address the problem, the government has prepared a bill aimed at attracting greater private investment and reducing the control of unions in the country’s ports. The proposed legislation, which replaces 20-year-old regulations, would lift restrictions on the building of private ports, allow private operators to build and run terminals at state-owned ports and permit private companies to handle both their own and third-party cargoes. The bill passed the country’s Lower and Upper House and is now ready for presidential approval."]
[2013,"June","CHINA – approval of company mergers:  Merger requests of foreign-controlled companies trading and processing soybeans (and other agricultural commodities) are said to have come under close scrutiny by the country’s regulators. Reportedly, in one case approval has been tied to specific conditions meant to prevent that foreign groups gain excessive control over the country’s soybean imports and crush industry, thus potentially curtailing the role of locally-owned firms. Increased scrutiny is said to reflect the government’s food security objectives regarding a sector known for its high dependence on imported raw material and for a strong presence of overseas-controlled companies (see also MPPU Feb’13)."]
[2013,"June","CHINA – state reserves of rapeseed:  The government has directed state-owned firms to purchase 5 million tons from the country’s forthcoming rapeseed crop (which is forecast to amount to 14.1 million tons) for public storage. State reserves are maintained with the objective to protect local farmers and encourage domestic production. The official procurement price has been set at Yuan 5 100 per ton, two percent higher than last year’s. The government’s procurement policy is said to have driven domestic rapeseed prices above the prevailing international price, which could induce crushers to raise their overseas purchases."]
[2013,"June","CHINA – removal of import restrictions  - Canadian rapeseed:  Canada has been granted permission – on a trial basis – to resume deliveries of rapeseed to a crushing plant located close to China’s main rapeseed growing area. Such imports had been banned since 2009 due to concerns over possible fungal disease contamination. The two countries are said to have joined forced to develop appropriate risk mitigation measures (see also MPPU Apr’13)."]
[2013,"June","CHINA – removal of import restrictions - Indian rapeseed meal:  Agreement on a new, strict shipment protocol has paved the way for the resumption of India’s rapeseed meal exports to China. Imports had been banned in January last year following the detection of a hazardous chemicals in consignments from India (see also MPPU Feb’12)."]
[2013,"June","EAST AFRICAN COMMUNITY – regional edible oil standards:  Reportedly, the five members of the East African Community agreed to adopt harmonized standards for edible oils based on Codex Alimentarius standards. The initiative aims at improving the quality of edible oils consumed in the region. Common standards are expected to improve the competitiveness of locally grown produce, also facilitating intra-regional trade. While demand for edible oils kept rising in the region, EAC member countries have become increasingly dependent on imports from third countries. The region is said to offer considerable scope for local production of groundnut, sunflowerseed and soybean.              "]
[2013,"June","EGYPT / SUDAN – government-to-government deal:  Egypt and the Republic of the Sudan agreed to implement a joint agricultural project that would allow Egypt to become self-sufficient in sunflower oil. Sudan agreed to make available agricultural land for the cultivation of sunflowerseed destined exclusively for the Egyptian market. As a result, Egypt hopes to phase out its imports from the international market, relying on a nearby secured source of supply instead. The country’s imports of sunflower oil are estimated to have almost tripled over the last 6 years. "]
[2013,"June","EUROPEAN UNION – biodiesel anti-dumping/subsidy duties:  Provisional anti-dumping duties have been imposed on imports of biodiesel and biodiesel blends from Argentina and Indonesia, which together account for 90 percent of the EU’s imports. The measure results from an investigation launched last year in response to complaints by a group of EU biodiesel producers over sales of imported biodiesel below its normal value overseas (see also MPPU Nov’12). The investigation found that the volume of low-priced imports doubled during 2011-2012, leading to a significant increase in the total market share of the two countries – at the expense of EU industry. Depending on the company involved, the countervailing duties range from 76 to 105 € per ton (or 6.8 to 10.6 percent) for soyoil-based fuel from Argentina and from zero to 84 € (or zero to 9.6 percent) for palmoil-based fuel from Indonesia. Definitive duties could be set in November, depending on the investigation’s final results. Reportedly, the EU Commission is also conducting a separate investigation on whether Argentina and Indonesia have been providing their producers with unfair indirect subsidies, causing additional damage to the EU industry. Allegedly, the differential export tax regimes maintained by the two countries discourages raw material exports in favour of biodiesel exports, and the practice of offering biodiesel at lower prices than the raw material used to make the final product is said to put EU biodiesel production from imported feedstock at a disadvantage. If confirmed, these allegations could lead to the imposition of additional anti-subsidy duties later this year."]
[2013,"June","EUROPEAN UNION – olive oil consumption regulations:  The EU Commission decided to withdraw its plan to prohibit the use of non-refillable olive oil bottles in the restaurant and hospitality sector. The measure – already approved by a member country majority vote – was meant to promote quality olive oil and protect consumers from fraud. It required restaurants to serve olive oil only in non-reusable, specially sealed bottles with proper labeling. Reportedly, the plan was abandoned as it did not garner a sufficiently large majority. Further consultation with the restaurant sector, consumers and the olive oil industry are planned in order to find alternative means of protecting product standards. The objective will be to minimize both extra costs and interference in businesses while ensuring adequate protection of quality standards and consumer rights."]
[2013,"June","INDIA – oil palm development:  According to official sources, efforts to promote the cultivation of oil palm in the country – so as to reduce the country’s dependence on vegetable oil imports – has not produced the hoped-for results. Reportedly, although generous producer subsidies have been offered, the number of farmers taking up oil palm cultivation has remained way below expectations. The lack appropriate irrigation facilities and delays in setting up private processing facilities have been mentioned as hurdles faced by the farmers, while legal impediments and the fact that oil palm does not enjoy plantation crop status are said to have discouraged private investors (see also MPPU Jan/Mar/Apr’11 and Nov’12)."]
[2013,"June","INDONESIA – land distribution policy:  According to official sources the government is working on a law that would restrict the plantation area of new private-held oil palm firms to 100 000 ha. Reportedly, the law, which would amend a regulation in place since 2007, aims at opening up the sector to smaller operators. State-owned firms, cooperatives and existing companies that already have permits would not be affected. How plantations with land licenses due to expire and/or to be renewed would be treated is not clear. Reportedly, numerous firms currently operating in the country own plantations that exceed the proposed ceiling."]
[2013,"June","INDONESIA – soybean market regulation:  In line with previous announcements, the government is ready to introduce a set of measures in support of domestic soybean producers, with the aim to encourage domestic production, while at the same time protecting local consumer from food price rises (see also MPPU Nov’12). Reportedly, a floor price of Rp.7 000 per kg will be imposed when traders buy soybeans domestically, while prices for selling soybeans to tofu and tempe manufacturers have to remain within the Rp. 6 800 - 7 200 range. The latter price band is supposed to be reviewed on a monthly basis. As to soybean imports, there will be no quantitative restrictions, but traders’ import volumes will be tied to purchases of domestically grown beans."]
[2013,"June","INDONESIA – forest/peatland conservation:  Indonesia approved a two-year extension to its ban on clearing primary rain forest and carbon-rich peatland. Applied by expanding palm oil and mining companies, these practices are known to represent a major source of GHG emission and thus global warming. The moratorium, which was introduced in May 2011 under a bilateral deal reached with Norway, aims at preventing deforestation and forest degradation on a total area of more than 65 million hectares (see also MPPU Aug’10).  "]
[2013,"June","INDONESIA / MALAYSIA – palm oil exports tax:  Reflecting recent reductions in international benchmark prices, in Indonesia the tax collected on crude palm oil exports has been set at 9% for both May and June, compared to 10.5% applied in the two preceding months. The tax for refined oil and refined olein has been fixed at, respectively, 0% and 3%. By contrast, Malaysia’s tax on crude palm oil shipments will remain unchanged at 4.5% for the fourth consecutive month. The change in the exports tax pattern could favour Indonesian exports over those of Malaysia.   "]
[2013,"June","MOROCCO – oilseed production expansion:  An agreement signed between the agricultural ministry and the national oilseeds industry federation aims at tripling the country’s area seeded with oilseeds between now and 2020. The initiative, which targets in particular sunflowerseed and rapeseed, is expected to reduce the country’s dependence on vegetable oil imports. In 2020, oil production from locally grown seeds is anticipated to cater for 19 percent of domestic consumption as opposed to only 2 percent at present. "]
[2013,"June","PARAGUAY – soybean export taxation:  A bill aimed at promoting domestic production of higher-value added soymeal and soyoil via differential export taxation has been voted down by the country’s Lower House after having passed the Senate (see also MPPU Dec’12). Reportedly, lawmakers were afraid that the powerful multinational companies controlling domestic crush and trade would pass on the extra cost to the small local growers, eventually  discouraging domestic production. The draft bill had also contemplated taxation of wheat, maize and sunflower exports.   "]
[2013,"June","TURKEY – GMO import permits:  Reportedly, the country’s Biosecurity Board decided to suspend entry of a number of genetically modified products into the country citing concerns about product safety. The list of banned products includes GM rapeseed, sugar beet as well as maize destined for biofuel production. Meanwhile, several types of soybeans have been authorized, though only for use by the feed industry. The board called on the country’s research institutions to enhance their scientific research on GM products.      "]
[2013,"June","UKRAINE – market regulation:  Reportedly, the government posted a draft regulation that would allow trade in grains, flour and sunflower oil to take place exclusively at the country’s single, state-run  agricultural commodity exchange. The country’s agricultural associations criticized the proposed measure saying that it would go against the principles of free contracting, raise transaction costs and increase the administrative burden for market participants.  "]
[2013,"June","UNITED STATES – biofuel feedstock:  The US Environmental Protection Agency (EPA) informed that it accepted a petition from Canada by which all biofuel and biofuel feedstock, including rapeseed, approved in Canada automatically meet the requirements of the US Renewable Fuels Standard programme. EPA’s approval opens the doors for the exportation of Canadian rapeseed to the United States for use in biodiesel production."]
[2013,"June","UNITED STATES – seed patent protection:  The US Supreme Court judged against a farmer who planted the offspring of patented seed without the express or implied permission of the patent-holder. The judgment refers to a farmer who successively reproduced Roundup-Ready soybeans without compensating the agro-tech company Monsanto. The ruling created considerable debate because it was not clear how patent law should extend to self-replicating technologies, particularly those that replicate naturally, like plants. The court’s verdict only applies to a specific case of deliberate reproduction, while numerous instances of inadvertent planting of patented crops remain to be resolved. While it is generally acknowledged that rigorous patent enforcement is essential for plant technology firms to conduct their research, some civil society groups pointed out that over the years such protection has led to undue consolidation in the seed industry and, as a result, to rising product prices.   "]
[2013,"June","VIETNAM – import policy:  As announced earlier this year, a temporary duty surcharge will be applied to the country’s imports of refined soy and palm oil. The “self defense” measure is meant to prevent rapid imports of these products from threatening domestic production (see also MPPU Feb’13). Reportedly, from May 7th onward, and for a maximum of 199 days, an extra duty of 5% will be levied on top of the regular tariffs that range from 22.5 to 37.5%  – except for imports originating from ASEAN members and the Republic of Korea, which enjoy a zero duty."]
[2013,"June","Honeybee control - United States:  A study jointly released by USDA and EPA reports that a drastic decline in the US population of honeybees last winter could threaten a number of crops, including soybeans, that rely on bees for pollination. Reportedly, a first sudden and widespread disappearance of bees occurred in 2006. The scientific community has not found a single, well defined cause for the decline and, instead, points to complex interactions between several factors. The latter include exposure to parasites and diseases; loss of habitat and poor nutrition; and exposure to pesticides. Increased genetic diversity could improve the situation; furthermore, there seems to be a need for improved collaboration and information sharing: while best management practices associated with bees and pesticide use exist, these are not widely or systematically used. With regard to pesticides, further research is required to  determine the actual exposure of bees to pesticides and to examine effects.   "]
[2013,"June","Honeybee control -  European Union:  The European Commission decided to temporarily ban the use of three widely used pesticides to protect bees. Research by the European Food Safety Authority identified pesticides belonging to the neonicotinoid family as being harmful and linked to a plunge in Europe’s honeybee population. The ban will take effect coming December and stay in place for two years, unless new scientific evidence emerges. According to market observers the measure could lead to a sizeable drop in crop yields, affecting in particular the EU’s rapeseed production. The banned pesticides are widely used to protect seeds of several bee-pollinated plants from insect infestation. Pesticide manufacturers voiced concerns about the moratorium, partly supported by farmer organizations. They claimed that the measure is based on incomplete evidence gained from limited laboratory testing instead of field-based trials, recommended that a comprehensive risk-benefit assessment be undertaken, and warned that the ban could lead to unintended consequences for the environment. Policy makers acknowledged that more scientific work on the reasons behind falling bee numbers is needed. However, since pesticides were identified as one of the factors affecting bee health it was decided to restrict their use based on the precautionary principle."]
[2013,"June","Access to non-GM soya:  Reportedly, a group of major retailers from five European countries pledged to support Brazil’s non-genetically modified soybean production chain. Viewing animal feed (and hence soymeal) as the main route by which genetically modified soy enters the EU food chain, the retailers are committed to promote GMO-free soy in Brazil – the world’s leading supplier of soy and soymeal. Their objective is to provide European consumers with GMO-free food products, thus giving them the option to choose the source of their food. The group listed specific measures designed to facilitate the production of non-GMO soya. The programme will be implemented in collaboration with a private EU-based certification scheme for non-GMO soy, Brazil’s soy industry association and the Brazilian association of non-GMO grain producers and processors, which confirmed that the country’s non-GMO soy supply was secure. Market observers remarked that the initiative is diametrically opposed to the stance of a group of UK retail chains which recently announced that they would no longer require eggs and poultry to be produced using non-GMO feed, giving as a reason that there is insufficient availability of non-GM soy, particularly from Brazil."]
[2013,"June","Trans fat policies:  The World Health Organization disseminated a study conducted by the University of Sydney on the effectiveness of policies to reduce trans fat consumption. The researchers analyzed measures implemented world-wide to cut the presence of artificial trans fat in foods. Artificial trans fatty acids (TFAs) are unsaturated fats found in foods containing partially hydrogenated vegetable oils and have been associated with an increased risk of cardiovascular and other diseases. The WHO has called for the elimination of such TFAs from the global food supply and thus promotes the adoption of national policies that aim at eliminating the same from the food chain, replacing them with polyunsaturated fatty acids. Policies analyzed in the study include national and local bans, labeling regulations and voluntary measures. Bans were found to be the most effective tool, followed by mandatory labeling. As to mandatory labeling, its effectiveness depends on consumer awareness about TFAs and their health effects. Moreover, it was found that such regulations tend to lead to voluntary product reformulations, especially by food manufacturers in high-income countries, which eventually leads to improved fatty acid profiles of foods. With respect to low-resource settings, further research is urgently need to identify context-specific challenges and policy responses. In general, the study concluded that policies to reduce TFAs are feasible, achievable and likely to have a beneficial effect on public health. However, closer monitoring of TFA levels in the food chain is needed to ensure that progress continues, in particular in low-income countries where little information on consumption is available."]
[2013,"June","High-oleic vegetable oils:  According to private market sources, the global market for high-oleic vegetable oils has climbed to an annual volume of two million tons since the specialty oil was launched about ten years ago. Originally limited to sunflower and safflower, sources for high-oleic oil now also include rapeseed. Furthermore, specialty soybean varieties are about to be launched and high-oleic grade palm oil is said to be under development. The largest producers as well as consumers are the EU, the United States and Canada, which also absorb surplus production from Argentina, Australia and CIS-countries. Global demand is anticipated to continue expanding and production is expected to follow suit. Mostly used in the food industry, high-oleic oils are valued for their health profile: their high content of unsaturated fats and the fact that they don’t need to be hydrogenated allows to eliminate trans fatty acids and limits the intake of saturated fat. Reportedly, high-oleic oils also enjoy a high oxidative stability and don’t undergo changes in taste or odor during cooking and frying. Regarding the supply chain, the price premiums paid for high-oleic oils seem to justify the segregation system that is needed to preserve the oil’s identity."]
[2013,"June","Specialty soybean oil:  Reportedly, stearidonate omega-3 soybean oil, a nutritionally enhanced oil said to promote heart health, is ready for commercialization in the United States, Canada and Mexico. Intended for food use, the oil is expected to be used by food manufacturers to develop nutritionally improved foods.    "]
[2013,"June","Sustainable sunflower oil:  Unilever South Africa has formed a partnership with a group of local sunflowerseed producers to foster domestic sourcing of sustainably produced oil and reduce the company’s dependence on imported produce. Reportedly, participating farmers have committed to follow the company’s internal code on sustainable agriculture, which aims at preserving soil fertility, enhancing water use, reducing GHG emissions, protecting biodiversity and improving the livelihoods of farmers and workers."]
[2013,"June","Certified sustainable palm oil -  Market penetration:  Global annual production capacity of RSPO-certified palm oil is estimated to have reached 8.2 million tons, which corresponds to about 15% of world palm oil production. This compares to only 500 000 thousand tons of certified produce in the year 2009. However, members of RSPO (Roundtable for Sustainable Palm Oil) seem to be concerned about the relatively slow penetration of certified palm oil in the marketplace. The actual uptake of certified oil in 2012 has been reported at just over 50%, implying that close to 4 million tons of certified produce did not find a buyer and had to be sold as conventional oil with no premium going to growers. According to private sources a rise in uptake can be expected towards the end of 2014, i.e. when the targets of several big buyers and retailers are set to come into play. RSPO officials said that, to better align supply with demand, stronger collaboration among market players throughout the value chain was needed. They informed that the association had increased its efforts to firmly engage committed buyers in the EU, while also paying increased attention to the Indian and Chinese market. Meanwhile, according to some civil society groups, the certification process was losing credibility and consumer faith in some markets. The fact that developed country buyers continued to source most of their oil through the book-and-claim system rather than through fully segregated and traceable supply chains was openly criticized. As to the supply side, the WWF (World Wildlife Fund), itself a member of RSPO, recently asserted that only a handful of member producers were making adequate progress towards the goal of becoming 100% sustainable. Furthermore, only half of the member growers had set themselves time-bound plans for certifying their entire production, and only one third of member mills had made time-bound commitments for certifying associated smallholders producers. With respect to smallholders, the RSPO informed that it recently set up a special fund to foster, world-wide, their integration into the certification process. "]
[2013,"June","Certified sustainable palm oil - RSPO principles and criteria for sustainable production:  Every five years, RSPO members review the association’s standards with a view to improve their relevance and effectiveness, thus enhancing impact in the global marketplace and enabling sustainable practices to become mainstream over time. A revised set of principles and criteria has been issued in April, following an extensive consultation process involving stakeholders from all parts of the commodity chain. The revised standard is said to encapsulate additional criterion on GHG emissions, pesticide uses, peat planting, forced labour, human rights and ethical business practices. The WWF acknowledged that the new set of principles represents the best possible compromise for the various interest groups participating in RSPO. However, it also invited responsible and progressive oil palm growers to not only certify all of their palm oil but also report on some additional stricter performance indicators, making use of RSPO’s existing recording and auditing system."]
[2013,"June","Jatropha oil value chain:  Reports about jatropha curcas projects across the developing world suggest that the viability of jatropha curcas cultivation for fuel purposes remains open to question. While both, straight burning of jatropha oil and its transformation into biodiesel do not pose particular technical difficulties, the suitability of jatropha cultivation on a commercial basis – in a sustainable form that involves small farmers and avoids competition with local food crop production – continues to generate doubts and concerns. Surprisingly mixed experiences have been reported from around the world, ranging from  highly successful large-scale private investments to outright failures of local smallholder-based schemes in more marginal areas. Overall, it emerges that the feasibility and sustainability of jatropha value chains tends to vary greatly depending on the underlying objectives (developmental, environmental, commercial), on the prevailing local conditions (agro-climatic, economic, social, market etc.) and on whether or not there is access to improved seed material and technical know-how. Evidence from a number of field projects seems to suggest that special caution needs to be exercised when promoting jatropha curcas value chains in resource-poor  environments for local development and smallholder income generation."]
[2013,"August","ALGERIA – soymeal import duty:  According to private sources, the government is considering to extend by one year the suspension of import duties on soymeal and other feedstuff that was introduced in September 2012 (see MPPU Nov.’12). The suspension was introduced to help the country’s livestock industry coping with high import prices and to check rises in local retail prices for meat. "]
[2013,"August","BRAZIL – disease control:  The mandatory 90-day soybean-free period has taken effect in most of the country’s soybean growing states on June 15th. In effect since the mid 2000’s, the measure is meant to help slow the spread of diseases (notably ‘asian rust’ but also ‘corn ear/cotton ball worms’) from one soy crop to the next. During the prohibition period, no commercial soybean cultivation is allowed and all adventitious soybean that may have germinated after the last harvest must be destroyed.           "]
[2013,"August","BULGARIA – competition policy:  The country’s competition authority sanctioned a group of vegetable oil producers and retailers for creating a price cartel. The agency found that vertical agreements entered by the concerned companies had prevented competitive market pricing."]
[2013,"August","CANADA – rapeseed/soybean R&D:  New government funding will be made available to enhance the competitiveness and sustainability of the country’s rapeseed and soybean industries. The Canola Council of Canada and the Eastern Canada Oilseed Development Alliance will receive support under the AgriInnovation Program to conduct research on: new uses of rapeseed as animal feed; pest management and disease resistance; yield enhancement and stress resistance; economic and environmental sustainability; and market opportunities for food-grade soybeans."]
[2013,"August","CHINA – state procurement and reserve policies - Soybean reserves:  The release of soybeans from public reserves via public auctions is set to resume in August. Reportedly, a total of 3 million tons could be offered, all of which originating from domestic procurement operations conducted in 2010 and 2011. According to private sources, sales could be slow to take off as auction starting prices (probably ranging Yuan 4 200 – 4 600 per ton) are likely to exceed current import prices (reported at Yuan 3 500 per ton). "]
[2013,"August","CHINA – state procurement and reserve policies -  Rapeseed and rapeseed oil procurement: Procurement policies for rapeseed oil have been tightened to prevent imported rapeseed oil from entering public reserves. Reportedly, a strict ban has been imposed on the entry of imported rapeseed oil as well as on oil extracted from imported rapeseed into state reserves.        "]
[2013,"August","CHINA – GM soybean approval:  Chinese officials announced the approval of three varieties of genetically modified soybeans for importation. The three pest resistant varieties (CV127, Intacta RR2 Pro and Liberty Link) are of particular interest to Brazil – one of China’s leading soybean suppliers. Based on China’s approval, Brazilian farmers expected to start using the improved seed material for the forthcoming 2013/14 crop."]
[2013,"August","CHINA – removal of import restrictions: Agreement on a new strict shipment protocol has paved the way for the resumption of India’s rapeseed meal exports to China. Imports had been banned January last year following the detection of a hazardous chemicals in consignments from India (see MPPU Feb.’12)."]
[2013,"August","EUROPEAN UNION – biodiesel anti-dumping duties:  According to private sources, Argentina’s biodiesel industry is being negatively affected by the EU’s recently introduced provisional anti-dumping duties (see MPPU June’13). In Argentina biodiesel production is strongly export oriented, with about 95% of domestic output destined to the EU market. Argentina’s biodiesel industry is reported to be working at only 35% of installed capacity as a result of the EU duty increase. To raise production, local producers are pushing for higher domestic biodiesel consumption, but lifting the compulsory blending requirement above the current 7% rate does not seem viable: the government’s policy to allocate domestic blending quotas mainly to small companies seems to limit the ability of larger producers to supply the market. As an alternative solution, Argentina is trying to diversify its biodiesel exports, for instance by seeking approval to sell biodiesel to the US market. In the meantime, first exports of biodiesel to the EU have been reported from neighbouring Brazil: in July, a partly state-controlled company said it was ready to ship 8 000 tons of biodiesel to the EU. As to Indonesia, the second country targeted by the EU’s anti-dumping measure, private sources reported that – after bilateral talks between Indonesia and the EU have reached a standoff – the country could file a complaint against the EU at the WTO."]
[2013,"August","EUROPEAN UNION – regulation of commodity derivative markets:  Discussions about the introduction of limits on commodity speculation are going on among EU lawmakers. The purpose of such limits would be to restrict the activities of fund management companies that engage in agricultural commodity trading – a practice that some believe has fueled food price volatility in recent years (see also MPPU Nov.’12). Reportedly, the EU Council is not in favour of setting EU-wide position limits and, instead, has proposed to allow individual member countries to set their own limits. Critics say that this would lead to member states converging towards low positions limits. The EU Parliament continues to favour single, binding limits across the EU. Lawmakers are expected to reach a consensus by March 2014. By comparison, in the United States, position limits have already been adopted for some key futures and options contracts, including for wheat and maize.     "]
[2013,"August","EUROPEAN UNION – common agricultural policy:  The Council, Commission and Parliament of the EU have reached agreement on a set of reforms to be applied to the bloc’s common agricultural policy during 2014–2020. Direct payments to EU farmers are going to be maintained, although member countries may also continue to provide support coupled to the production of specific products (within certain limits). The most important change will be that payments are going to increasingly depend on compliance with specific environmental requirements: in particular, producers will be required to diversify their crops, maintain permanent grassland, and protect ‘ecological focus areas’. The new rules also envisage a negative list of entities that would not be eligible for subsidies. However, no agreement has been reached on degressivity and capping of  payments to individual farmers, on the transfer of funds between pillars and on the rates of co-financing. Also, the budgetary framework for the next seven years still needs to be discussed. The EU Commission still has to translate the agreed-upon reforms into legislative text for final adoption by the Parliament and Council."]
[2013,"August","EUROPEAN UNION – long-term biofuel policy:  The environment committee of the EU Parliament has endorsed the EU Commission’s draft proposal (see MPPU Nov.’12) to cap the contribution of food-based biofuels in the transportation sector and to require reporting of estimated GHG emission levels for each biofuel, including mandatory accounting of ILUC effects. The committee recommended to limit the contribution of food-based (or ‘first-generation’) biofuels to 5.5 percent of total energy consumption in 2020 – as opposed to the originally proposed 5 percent, and compared to the current level of about 4.5 percent – with a view to ensure that support granted to such biofuels does not unintentionally harm the environment or displace food production. The proposal represents a reversal from the EU directive approved in 2009, which fixed the contribution of renewable energy sources at 10 percent. The committee also proposed that ‘advanced’ (or ‘second-generation’) biofuels – i.e. fuels made from agricultural residues, seaweed and certain waste products – account for at least 2 percent of total energy consumption and that their production be promoted through special incentives. The committee’s recommendation has to be followed by a plenary vote later this year, following which the proposal will be submitted to the EU Council for final approval. If confirmed, the policy shift would negatively affect the EU’s biofuel industry, which relies heavily on food crops, especially edible oils, as feedstock. Industry sources warned that, by applying an arbitrary cap on all food-based biofuels, important differences between individual fuels – in terms of environmental performance – would be ignored, thus exposing the EU’s policy to accusations of discrimination and breaches of WTO rules."]
[2013,"August","FRANCE – palm oil marketing:  The French government assured Malaysia that domestic palm oil sales will not be subject to tax hikes on environmental or health grounds as recently considered in the French parliament (see MPPU Dec.’12). It was also made clear that under forthcoming EU regulations on mandatory declaration of product ingredients there would be no discrimination against palm oil (see also MPPU Apr.’13). "]
[2013,"August","INDIA – public distribution of edible oil: Managed and funded by the federal government since 2008, subsidized sales of (mostly imported) vegetable oils under the Public Distribution System are set to expire in September 2013. Reportedly, in several states the programme is not being used widely due to a variety of reasons. During fiscal year 2012/13, states are said to have utilized less than one third of the over 600 thousand tons of oil procured at central level. With a view to reduce the centre’s exposure, in future, state governments could be asked to themselves place orders with the procurement agencies – based on their actual needs –, with subsequent reimbursement by the federal government on the basis of actual transactions.            "]
[2013,"August","INDIA – support prices:  With the onset of the kharif (summer) cropping season, minimum support prices (MSP) paid to farmers have been revised upward for several crops: the MSP for yellow and black soybeans has been raised to, respectively, Rs 25 600 and Rs 25 000 per ton (compared to last year’s Rs 22 400 and 22 000); that for sesame has been lifted to Rs 45 000 per ton (from Rs 42 000); and that for groundnuts in-shell went up to Rs 40 000 per ton (from previously Rs 37 000). By contrast, the MSP for sunflowerseed and nigerseed have been kept unchanged at, respectively, Rs 37 000 and 35 000. Support prices are adjusted regularly to reflect rises in production costs, so as to protect farm incomes and stimulate production. This year, the increases granted to oilcrops (ranging from zero to 14 percent) are smaller than last year’s (24–37 percent) and compare as follows to other kharif crops: rice up 5%; cotton 3%; millet 6%; pulses 2–12%; and maize 11%."]
[2013,"August","INDIA –  vegetable oil import duty:  Reportedly, the government is considering to raise the country’s import duty on refined vegetable oils, notably refined palm olein imported from Malaysia and Indonesia. At present, it costs less to import refined oil than crude oil, a situation that puts domestic refiners at a strong disadvantage. The distorted import pattern is related to the inverted export duty structure adopted by Malaysia and Indonesia – to promote their own refining industries – and to the changes India applied to its crude vegetable oil import policy earlier this year (see MPPU Feb.’13), which narrowed the difference in import tariffs for crude and refined oils to only 5 percent. According to India’s refining industry the duty differential needs to be kept around 14% for refining operations to remain economically viable. After concerns over domestic inflation stalled government action for several months, the ministries of finance, commerce and agriculture now agreed to review available options to address the issue. Reportedly, the proposal currently under consideration is to raise the import duty on refined oils from the existing level of 7.5 percent to 12.5 percent, while leaving the rate for crude oils at 2.5 percent.        "]
[2013,"August","INDIA – coconut sector support - Replanting programme:  Reportedly, the federal government agreed to assist the Coconut Development Board in extending its scheme for replanting and rejuvenation of coconut palm from Kerala to the entire country. Intended to raise productivity and farm incomes, the project supports the introduction of disease-resistant, high-yielding varieties while encouraging the involvement of producer associations."]
[2013,"August","INDIA – coconut sector support - Insurance scheme:  With a view to increase farmers’ uptake of the Coconut Palm Insurance Scheme, which was launched with central and state government support in 2009 to protect growers against natural calamities (see MPPU Jan.’10), the Coconut Development Board has proposed the following policy changes: replacing single tree coverage with area or region-wise coverage to increase cost effectiveness; contract extension from 1 to 3 years; and raising the insurance amount from Rs 600 per palm to Rs 2 000.\n"]
[2013,"August","INDONESIA – land distribution policy:  The government confirmed that it is working on a regulation that would prohibit oil-palm companies to expand their plantation areas beyond 100 000 ha (see also MPPU June ’13). It also informed that companies that are listed on a local stock exchange and whose majority of shares are publicly owned would be exempt from the restriction. "]
[2013,"August","INDONESIA – public soy reserves:  In line with past government announcements, the state-run Board of Logistics (BULOG) is ready to resume soybean imports and establish strategic reserves with a view to stabilize domestic prices of soy-food products (see also MPPU Nov.’12). Reportedly, BULOG has signed a first contract with the national cooperative of tempeh and tofu producers (GAKOPTI), which will allow members of the cooperative to buy soybeans from BULOG at IDR 7 450 per kg."]
[2013,"August","INDONESIA – palm oil export tax:  Based on a slight increase in international palm oil quotations, in July, Indonesia raised its tax collected on crude palm oil (refined palm olein) exports from previously 9 (3) percent to 10.5 (4) percent. In August, the tax rates will remain unchanged."]
[2013,"August","INDONESIA – palm oil industry -  Processing capacity:  According to industry sources, the country’s palm oil refining capacity is growing rapidly – triggered, inter alia, by the revised export duty regime put in place in 2011, which conferred shipments of refined palm oil with an edge over crude oil exports (see also MPPU Sep.’11). Estimated at 26 million tons in 2012, the country’s installed palm oil refining capacity is put at 30.9 million this year and could climb to 39.5 million tons in 2014. The estimate for next year can be broken down into the following sub-categories: refining and fractionation capacity 30.9 million tons, oleo-chemical production capacity 4.2 million, and biodiesel manufacturing capacity 4.3 million.      "]
[2013,"August","INDONESIA – palm oil industry - Transport infrastructure:  The palm oil industry has urged the government to build new seaports to cope with the country’s rising export volumes. Low public investment in past years is said to have led to inadequate road and port infrastructure, causing inefficiencies and raising handling costs above the level found in competing Malaysia. Especially the number of seaports offering special palm oil bulking terminals seems to be insufficient. Enhanced or new seaports ought to be strategically located, that is in North Sumatra, West Kalimantan and North Sulawesi. "]
[2013,"August","MALAYSIA – biofuel policy:  Launched in three central states of Peninsular Malaysia in 2011, mandatory commercialization of B5 (regular diesel blended with 5% palmoil methyl ester) is set to be extended to the entire country by July 2014, according to official sources. Once the programme is implemented nationwide, biodiesel producers are expected to absorb 500 000 tons of palm oil per year, compared to 300 000 tons at present. Government officials expect that increased biodiesel demand will help absorb excess palm oil production and prevent the build-up of stocks, thus lending support to prices. Moreover, the government is already planning to move beyond 5 percent blends: the country’s Palm Oil Board is working on an action plan, that includes research on the suitability of B10 blends and related equipment warranty issues. Other measures said to be ready for implementation include the use of B10 by public agencies and the armed forces,  B10 trials with the country’s Fisheries Development Board, and incentives schemes for voluntary B10 use."]
[2013,"August","MALAYSIA – palm oil export tax - Monthly tax review:  In August, the country’s export tax on crude palm oil will be kept unchanged at 4.5 percent for the sixth consecutive month, despite a slight increase in the  international reference price for palm oil. By keeping export charges at the bottom of the pre-defined tax range palm oil shipments are encouraged, which also helps to further reduce the country’s palm oil inventories."]
[2013,"August","MALAYSIA – palm oil export tax - Free trade agreement:  Parties to free trade agreements typically agree to liberalize trade, including the reduction of national import tariffs and export restrictions. In this respect, concerns have been voiced locally regarding the treatment of Malaysia’s export taxes on crude palm oil (and other raw materials) under the on-going negotiations of the Trans-Pacific Partnership Agreement (TPPA). In case Malaysia agreed to exempt shipments to TPPA member countries from export taxation, the country would forgo the possibility to favour exports of refined palm oil over crude palm oil shipments – the policy currently in use to support the country’s value-added downstream manufacturing industry.    freemalaysiatoday "]
[2013,"August","PAKISTAN – rapeseed import duty:  With a view to encourage domestic production of oilseeds, the government decided to introduce a tax on rapeseed imports amounting to PRp 400 per ton. In the last few years, average annual imports of rapeseed have risen to around 850 000 tons, while domestic rapeseed production remained flat at 220 000 – 250 000 tons per year.  "]
[2013,"August","PARAGUAY – soybean export taxation:  The proposal to apply a 10 percent tax on exports of oilseeds and other unprocessed grains has been ratified a second time by the country’s Senate and resubmitted for consideration by the Lower House, which had rejected the bill at a first reading last April (see also MPPU Dec.’12 & June’13). Meanwhile, government officials have said that the controversial proposal is not implementable as it would require an amendment to the country’s customs code; instead the government is recommending to introduce a general tax on agricultural income and to extend the value added tax to the entire farming sector. Reportedly, the country’s farmers’ associations are backing the proposal put forward by the government."]
[2013,"August","PHILIPPINES – biofuel policy:  The National Biodiesel Board (a body composed of representatives from six ministries, the country’s Coconut Authority and the Sugar Regulatory Administration) has approved an increase in the country’s mandated biodiesel blend from currently 2 percent to 5 percent by end 2013 – two years ahead of the target set in the Biofuels Act of 2006 (see also MPPU Jul. & Nov.’12). The planned increase would raise domestic demand for coconut methyl ester to about 350 000 tons per year, compared to 140 000 tons at present. Ministry officials said they were confident that the country’s coconut sector was able to supply the required amounts. Reportedly, in recent years, the country’s coconut sector has suffered from oversupply, falling export demand for coconut oil and declining domestic copra prices. The proposed shift to a higher mandatory blend is expected to bolster domestic demand, thus helping to stabilize prices. Reportedly, consultations with all concerned sectors will be held and specific technical test carried out before proceeding with nationwide introduction of the higher blend."]
[2013,"August","SENEGAL – edible market regulation:  Based on recommendations made by the national committee responsible for monitoring domestic food prices, the government has set the following price limits for edible oils sold in the Dakar region: FCFA 825, 850 and 900 per liter for, respectively, ex-mill, wholesale and retail sales."]
[2013,"August","UNITED STATES – farm legislation:  Recent votes in the two chambers of congress about the next 5-year farm bill remained inconclusive. Current programmes are set to expire on coming September 30th, based on an extension of key provisions contained in the 2008-bill that was granted nine months ago (see also MPPU Nov.’12 & Feb.’13). In June, the Senate passed its second version, which much resembled the previous one, re-proposing the elimination of direct payments to farmers, the expansion of crop insurance programmes and modest cuts to the food stamps programme. Reportedly, a limit on crop insurance subsidies for large farmers and generous price-based support schemes for rice and groundnuts were added. One month later, in July, the House finally passed its first version, which, however, deliberately excluded the nutrition title as legislators could not agree over the scale of spending cuts in the food stamps programme. As to agriculture, also the House version focused on expanding the crop insurance programmes at the expense of direct payments. Reconciling the two versions of Congress could prove difficult as the Senate is expected to insists on a bill that includes both the agriculture and the nutrition title. In case no agreement was reached by end September, a further extension of provisions contained in the 2008-bill seems likely as, otherwise, agricultural policies would revert back to laws passed in the late 1940’s."]
[2013,"August","ZAMBIA – import policy:  Reportedly, local industry has urged the government to consider restricting  importation of edible oils. Oil manufacturers claim that they have the capacity to supply the domestic market with oil produced from locally grown oilseeds, notably soybeans. Specifically, the industry proposed to (i) grant import permits only under special circumstances, (ii) review the current policy of importing crude oils free of duty, (iii) ban the importation of packaged refined palm oil, and (iv) remove the value added tax on cooking oils. The proposed measures are meant to favour marketing of domestically produced oils and stem the inflow of finished palm oil that doesn’t undergo value addition locally. The overall objective would be to promote domestic oilseed production and to allow the local edible oil industry to grow.                    "]
[2013,"August","Oil palm productivity gains and environmental implications:  Malaysian researchers working on the sequencing of the oil palm genome managed to isolate a gene that should permit to boost yields quickly. Typically, due to the oil palm’s notoriously long reproductive cycle, it takes years for breeders to identify seedlings of a high-yielding type. Now, thanks to the identification of a commercially valuable genetic marker, it should be possible to shorten this cycle drastically. According to some experts, more rapid development and distribution of high-yielding varieties would automatically diminish the pressure on plantations to expand into fragile forestland, thus producing major environmental benefits. However, others warned that strict rules to protect forests and regulate the expansion of plantations will remain of crucial importance. Eventually, providing producers with access to guaranteed high-yielding seed material should represent a valuable alternative for farmers – especially smallholders – to grow their businesses, which could act as a strong incentive for those farmers to voluntarily adhere to environmental requirements.     "]
[2013,"August","Oil palm investments:  Leading global players in palm oil production and trade are continuing to pursue major investments in oil palm outside Indonesia and Malaysia, notably in Africa but also elsewhere in Asia. African countries where new plantations are planned or already  under development include Cote d’Ivoire, Gabon, Ghana, Liberia, Nigeria and the Republic of Congo. Opportunities are also being assessed in the following countries in Asia: Cambodia, Papua New Guinea, Myanmar and Pakistan. Investors seem to be driven by the prospect of continued growth in the demand for palm oil at the local, regional and global level on one hand, and by growing scarcity of suitable land in Southeast Asia along with increasingly strict regulations concerning environmental protection and social responsibilities on the other. Reportedly, most investments projects involve joint ventures with local companies and enjoy the support of concerned national governments. Investors claim to follow environmental and social best practices, to contribute to the revival of local industries and job creation, and to raise the availability of high quality oil for local populations. Particular attention is said to be given to the involvement of small producers and to the enhancement of local skills and capabilities."]
[2013,"August","Certified sustainable palm oil - Thailand:  A first shipment of certified sustainable palm oil has been reported from Thailand. The 1000 tons consignment comes from a RSPO-certified group of independent small farmers and is expected to encourage other small farmers to apply for certification. Smallholders are estimated to account for more than 80 percent of the country’s oil palm industry. Reportedly, the needs of smallholders received particular attention during the process of national interpretation of RSPO standards (see also MPPU Jan.’12)."]
[2013,"August","Certified sustainable palm oil -  Global availability:  The global production capacity of RSPO-certified sustainable palm oil has been estimated to reach 8.6 million tons this year, involving 2.4 million ha of certified area, and slightly more than 15% of total world production."]
[2013,"August","Certified sustainable palm oil - Smallholder certification:  To acknowledge the dominant and fast-growing role of small palm oil producers, RSPO has launched its ‘Smallholder Support Fund’ to help small producers that lack good agricultural practices gain certification. RSPO committed to making available to the Fund ten percent of income generated from its trading of certified produce as well as 50 percent of any remaining income surplus earned by the group each year."]
[2013,"August","Illegal forest fires:  Traditional slash-and-burn techniques used by farmers in Indonesia and Malaysia to clear land during the dry season are reported to have once again caused major smog problems in Singapore and Malaysia. Apparently, although declared illegal under national laws, burning continues to be used in the region to clear land or fertilize soils, in particular in oil palm plantations and timber concessions. Leading palm oil firms operating in the region – most of them members of RSPO – confirmed strict adherence to zero-burn policies on their own plantations. However, large producers typically also rely on supplies from other sources, and enforcing no-burning policies on such third parties seems to be much more difficult. Reportedly, Indonesian authorities started investigating selected companies based on satellite images, while also RSPO requested several member companies to prove compliance with the group’s zero-burn requirement. Companies found to have broken RSPO’s rules could lose their green certification, which is becoming an indispensible prerequisite for entering many Western European markets."]
[2013,"August","High-oleic soybean oil:  Eyeing rising consumer demand for stable vegetable oils with low saturated fat and zero trans fat content, soy industry groups in the United States promised to make funds available for the cultivation of high-oleic soybean varieties and the production and marketing of the respective oil. According to industry sources, annual US production of the specialty soyoil could exceed 4 million tons by 2023, which compares to an annual global soyoil output of 44 million tons at present (see also MPPU June’13).    "]
[2013,"August","GMO marketing in the EU:  US-based biotech company Monsanto announced that it will discontinue its GM-seed activities in the European Union and withdraw its pending formal approval requests for the cultivation of GM-seed (including one request for a GM soybean variety). Reportedly, the decision was driven by the lack of prospects for the cultivation of new GM crops in the EU, where obtaining approvals for GM-seed cultivation is subject to complex procedures and where public opposition to the technology remains strong. Monsanto informed that, instead, it will concentrate on its conventional (non-GM) seed activities in the EU and on obtaining EU  approvals for the importation of GM-seed products for direct consumption as food and animal feed (as opposed to cultivation). The company’s marketing strategy  therefore includes promoting further the cultivation of GM crops in third countries (notably in South America but also in Eastern Europe) for subsequent exportation to and consumption in the EU market. European biotech firm BASF made a similar move last year, when it decided to end its GM-seed activities in the EU, transferring all related research operations to the United States.                 "]
[2013,"August","Recycling of used vegetable oils:  Reportedly, food manufacturer Del Monte Foods decided to join food services company McDonald’s in its vegetable oil recycling project in the United Arab Emirates (see MPPU Jan.’13). The food manufacturer committed to run part of its logistic fleet on biodiesel made from waste oils."]
[2013,"August","Standards and certifications - Environmental standard for cosmetics: A new voluntary standard for toiletry and personal products launched in Australia, Good Environmental Choice Australia (GECA), claims to address a variety of sustainability issues, including consumer concerns about the sustainability of palm oil production. Reportedly, the standard aims to allow manufacturers to market the environmental benefits of their products with more confidence."]
[2013,"August","Standards and certifications - Sustainable biodiesel certification:  A new biodiesel certification programme launched by GreenCircle and Sustainable Biodiesel Alliance in the United States aims at providing an objective certification system to measure the overall sustainability of biodiesel production, distribution and use, based on specific environmental, economic and social criteria."]
[2013,"August","Standards and certifications - International food standards:  The 36th session of the WHO/FAO Codex Alimentarius Commission held last July in Rome deliberated on the following standards and text related to the \noilseed and oils/fats sector: (i) nutrient reference values, including for saturated fatty acids; (ii) Asian standards for tempe, for fermented soybean paste, and for non-fermented soybean products; (iii) parameters for rice bran oil; (iv) standards for edible fats/oils not covered by individual standards; (v) standards for named animal fats, for vegetable oils, and for olive/olive pomace oils; (vi) lists of acceptable previous cargoes in the code of practice for the storage and transport of edible fats/oils in bulk.\n"]
[2013,"August","Standards and certifications - Draft international standard for fish oil:  The 23rd session of the WHO/FAO Codex Committee on Fats and Oils held in Malaysia last March agreed to return a proposed draft standard for fish oil to step 2/3 (of the 8-step approval process) for redrafting, comments and further discussion. Reportedly, discussion by the committee focused on the overall scope of the  standard, the types of oil to be included, quality factors, additives and contaminants."]
[2013,"August","Standards and certifications - Responsible fish meal production: Stakeholders of the fish meal commodity chain agreed to develop voluntary industry standards to recognize responsible production. The proposed standards will set out requirements for the aquaculture feed industry to operate on a more environmentally sound and socially responsible basis, notably by tracing key ingredients used in fish feed and placing demands on raw material manufacturers to demonstrate that their products are produced responsibly. The initiative focuses on South East Asia, whose fish feed industry supplies feed for farmed fish globally. The standards should be ready for voluntary use by the end of 2015. "]
[2013,"August","Derivative markets:  US derivatives exchange CME Group reported the launch of a standardized, centrally cleared US-dollar contract for palm oil. Based on prices from Bursa Malaysia futures contracts, the USD Malaysian Crude Palm Oil Calendar Swap is said to have been developed for customers that wish to trade in far-off months, relying on a global clearance mechanism as opposed to dealing with trade partners bilaterally."]
[2013,"September","BRAZIL  –  agricultural support programmes - 2013/14 package:  For the forthcoming 2013/14 campaign, total government outlays for agricultural support programmes will increase by 18 percent compared to the funding made available in 2012/13. Last year, the year-on-year rise in public funding was limited to 8 percent. As to the individual programmes, investment aid has been raised most (in relative terms), followed by support to family-based farming, and marketing loans. Special attention will be given to activities falling in the following areas:  technology innovation, low-carbon agriculture, irrigated farming, rural insurance schemes, and investment for storage facilities. As to the latter area – considered of key importance given the country’s persisting infrastructure and shipping problems – the government plans to support both the construction of new private warehouses and the expansion of public facilities. Under the various programmes, financing limits per beneficiary have been raised  by 15-25 percent (compared to last year), while interest rates charged on public loans have been either lowered moderately or left unchanged. As in previous years, minimum farm gate prices for the key crops have – for the time being – been left unchanged (except for an increase in the support price for rice grown outside Rio Grande do Sul)."]
[2013,"September","BRAZIL  –  agricultural support programmes - Review of support provided up to 2009/10: According to a notification provided by the government to WTO, trade distorting effects of the country’s public support programmes for agriculture have been limited  –  despite the steady expansion in government outlays. Reportedly, only about one third of total support payments are considered as trade distorting following WTO-regulations, and of these the bulk falls within Brazil’s ‘de minimis’ allowance. The country’s only trade distorting payments are said to occur under cotton-specific support schemes. All the remaining public support programmes are claimed to cause only minimal trade distortion. Reportedly, the country has strongly expanded support payments for low-income family-owned farms, a payment category for which special allowances have been granted to developing countries. The latter group of farms has benefitted from input subsidies and, in particular, low-interest loans for agricultural investment projects. "]
[2013,"September","CHINA  –  management of state reserves - Soybean reserves:  Reportedly, from early August (when soybean sales from state reserves started) until September 2nd, close to 1.3 million tons of soybeans have been sold through public auctions (see also MPPU Aug.’13). Average sales prices are reported to have ranged Yuan 3890–4080 per ton, or about 3–4 percent below current import prices. Private sources estimate overall government stocks of soybeans at around 8 million tons, of which a total of 3 million tons could be offered for sale this year. With sales from state reserves likely to continue until November/December, some expect the pace of China’s overseas soybean purchases to slow down in the coming weeks."]
[2013,"September","CHINA  –  management of state reserves -  Rapeseed oil reserves:  Reportedly, a government agency started investigating whether domestic crushers have sold into state reserves oil processed from imported rapeseed – rather than oil obtained from domestically grown seed as stipulated by the government (see also MPPU Aug. ’13). To encourage domestic rapeseed production, the government is prepared to absorb some 5 million tons of locally grown rapeseed; under the programme, farmers are guaranteed a minimum price of Yuan 5 100 per ton, and crushers are provided with subsidies to produce the oil that is destined for public storage. Apparently, this policy has caused local prices for rapeseed and rapeseed oil to rise about 15 percent above import prices, a situation that domestic crushers benefitting from the above mentioned subsidies might have exploited unlawfully. "]
[2013,"September","EUROPEAN UNION  –  biofuel policy: With a view to spur the development of ‘clean fuels’ derived from non-food sources (thus preventing unintentional harm to the environment or displacement of food production), in a plenary vote of the EU parliament the use of crop-based fuels for transportation has been capped at 6 percent by 2020. At the same time, second-generation biofuels from non-food sources (like farm and industry waste or lignocellulosic biomass) should account for at least 2.5 percent. The vote also called for systematic accounting of ILUC effects and for mandatory reporting on GHG emission levels for each biofuel from 2020 onward. The recommended 6 percent cap (which would replace the 10 percent target set in the bloc’s Renewable Energy Directive of 2009) compares to a 5 percent limit proposed by the European Commission and to 5.5 percent suggested earlier by the Parliament’s environment committee (see also MPPU Aug. ’13). In order to become law, the proposals will require the agreement of bloc’s member states through the European Council.\n"]
[2013,"September","EUROPEAN UNION  –  biodiesel anti-subsidy duties:  Unlike the provisional anti-dumping duties on biodiesel imports from Argentina and Indonesia that are in place since last May (see also MPPU June ’13), the European Commission decided to postpone anti-subsidy measures against imports from the two countries to the definitive stage, thus refraining from imposing provisional duties. Reportedly, the Commission could not find sufficient evidence supporting the EU biodiesel industry’s view that the differential export tax systems applied by Argentina and Indonesia need to be considered as subsidies. The decision on definitive countervailing duties is expected by end November for the anti-dumping measures and by early December regarding possible anti-subsidy measures."]
[2013,"September","INDIA –  food subsidy scheme:  After two years of debate, the country’s Lower and Upper Houses approved a new food bill that, from April 2014, will provide about two-thirds of the country’s population with access to subsidized grains. The nationwide distribution scheme – allegedly one of the world’s largest welfare programmes – aims at tackling widespread food insecurity and malnutrition. The bill envisages (initially for three years) subsidized sales of wheat, rice and coarse grains but not of pulses and edible oils – which however could be added in the future. Critics of the initiative warned that, in the past, similar programmes have been characterized by major inefficiencies. According to the country’s own food ministry, under the current public distribution system, 20–30 percent of the food provided is lost to leakages.              "]
[2013,"September","INDONESIA – palm oil export tax:   Following a drop in international palm oil quotations, in September, the country’s crude palm oil (refined palm olein) exports will be taxed 9 percent  (3 percent) compared to the 10.5 percent (4 percent) charged in July and in August. Reportedly, the reduction in export taxes aims at boosting sales after international prices plunged to a multi-year low as global supplies have outpaced demand."]
[2013,"September","INDONESIA / PAKISTAN – preferential trade agreement:  Indonesian exports of palm oil to Pakistan are expected to expand in the coming months as the preferential trade agreement signed between the two countries will finally take effect (see MPPU Oct. ’11). Originally expected to come into force in early 2012, the agreement’s implementation was delayed due to technical problems concerning the importation of horticultural products from Pakistan into Indonesia. Reportedly, the latter issue has now been solved, thanks to the signature of a mutual recognition agreement on plant quarantine and SPS measures."]
[2013,"September","INDONESIA  –  soybean import tariff:  Reportedly, in recent weeks, domestic prices for soybean products have soared in the wake of rising international quotations, strong depreciation of the country’s currency, and a marked drop in national soybean stocks. Hit by the surge in prices, local tempeh and tofu industry have urged the government to again suspend the country’s 5 percent import tariff on soybeans. The government however decided to leave the tariff in place, pointing out that previous duty suspensions had failed to produce the desired results. Instead the government will continue to rely on the state logistic agency BULOG to bring down soy prices by increasing its soy importations and raising public stocks (see also MPPU Aug. and June ’13). "]
[2013,"September","INDONESIA  –  biodiesel policy:  The government plans to raise the mandatory biodiesel blending rate for transportation fuel from currently 7.5 percent to 10 percent. Reportedly, power plants will be requested to use gasoil blended with 20 percent biodiesel. In addition to reducing the current surplus of palm oil supplies over demand (which is blamed for the recent fall in prices) the measure is also meant to spur overall economic growth, stabilize the national currency, and help trimming the country’s mineral oil imports. Reportedly, the nation’s current biodiesel production capacity is sufficient to meet the new blending targets. According to markets observers, however, the higher blending targets may be difficult to achieve due to logistical, economic and other factors which prevented the country from achieving previous targets. Currently, the transportation sector is estimated to absorb around 600 000 tons of biodiesel, which corresponds to a blending level of less than 4 percent instead of the mandatory 7.5 percent.       "]
[2013,"September","INDONESIA  –  agricultural policy:  In August, a comprehensive bill aimed at empowering and protecting the agrarian population has become law. The bill includes provisions on (i) titles on state land, (ii) marketing assistance and price guarantees for certain crops, (iii) access to subsidized, tailor-made loans, (iv) state supported insurance schemes to cover losses caused by harvest failures or livestock deaths, (v) input subsidies, (vi) import measures to enforce quarantine rules and regulate imports of products whose local supplies are deemed adequate, (vii) recovery of degraded land and sustainable cultivation practices, (viii) improved irrigation systems, and (ix) support to farmers’ associations and cooperatives.        "]
[2013,"September","MALAYSIA – palm oil export tax:  In September, the country’s export tax on crude palm oil will remain unchanged at 4.5 percent for the seventh consecutive month. By keeping export duties at the bottom of the pre-defined tax range, exporters are encouraged not to reduce  their shipments despite the on-going slide in international prices. While Malaysia’s palm oil output is reported to be expanding, export demand has remained flat, causing inventory levels to rise again."]
[2013,"September","MALAYSIA  –  biofuel policies:  Still occupied with implementing mandatory B5 blending at the national scale, the government has announced plans to further accelerate the national biodiesel programme so as to spur domestic demand for palm oil and prevent stockpiles  from rising again. Reportedly, the government is determined to raise the mandatory blending rate first to 7.5 percent and then to 10 percent (see also MPPU Aug. ’13).  "]
[2013,"September","MALAYSIA  –  official palm oil certification:  The government is preparing to launch the Malaysian Sustainable Palm Oil (MSPO) certification scheme both, to boost production and to counter criticisms that the country’s supply chain is harming the environment (see also MPPU Apr. ’13). MSPO, which outlines criteria that producers need to meet for their products to be certified as ‘sustainable’, is set to be used as the national palm oil standard from 2014 onward. While initially certification will be on a voluntary basis, the government intends to make it mandatory in stages. MSPO is designed to replace the currently used, internationally recognized RSPO certification, which is said to create disadvantages for local stakeholders. In particular, RSPO is reported to be expensive to comply with, to contain overly stringent conditions, and to lack consistency in its goals."]
[2013,"September","RUSSIAN FEDERATION –  oilseed export taxation:  In line with the country’s WTO accession agreement, the government has announced as first round of reductions in export taxes on oilseeds (see MPPU Jan.’13). The duty for sunflowerseed will be lowered from formerly 20 percent to 16.6 percent (but not less than Euro 24.94 per ton), that for soybeans to 13.3 percent (but not less than Euro 23.33 per ton) and that for rapeseed to 15 percent (but not less than Euro 27.13 per ton).   "]
[2013,"September","VIETNAM  –  countervailing duties:  The government has confirmed that a countervailing duty of 5 percent will be applied on soyoil and palm oil imports starting September 7th (see also MPPU Feb. and June ’13). According to official investigations, past import levels led to considerable damage in the local vegetable oil industry. The special duty will remain in effect until May 2017. It will stay at 5 percent until May 2014, to be gradually lowered by one percent every 12 months thereafter. Market observers expect the measure to result in higher domestic retail prices and added that domestic manufacturers will have to reduce their production costs to raise their competitiveness.          "]
[2013,"September","Certified sustainable palm oil -  France:  Reportedly, six food manufacturing companies and three industry associations joined their forces to set up the French Alliance for Sustainable Palm Oil. The alliance aims at sourcing exclusively sustainable and traceable palm oil (certified by RSPO) for domestic consumption from 2016 onward. "]
[2013,"September","Certified sustainable palm oil - United States:  An important US chocolate manufacturer announced that it will switch to using exclusively RSPO certified palm oil (purchased via the mass balance system) in its products before the end of this year. The company said it was working directly with suppliers and other stakeholders in the supply chain to achieve full traceability of supplies."]
[2013,"September","Certified sustainable soybean:  The US soybean industry has launched the Soybean Sustainability Assurance Protocol, an on-line programme for US soybean exporters requiring certification that their products was produced following sustainable practices. Reportedly, the protocol is a certified aggregate approach audited by third parties that aims to demonstrate sustainability at a national scale. Developed to document sustainable performance for international customers, the system allows exporters to obtain shipment-specific certificates, using a mass balance approach. The measurement of sustainability is based on the analysis of existing data that state agencies regularly collect from farmers through various programs and for a variety of purposes. The initiative relies on US soybean production following a set of national conservation and sustainability regulations, with most soybean growers participating in a range of voluntary programmes. The protocol is said to reliably document sustainability in four key areas:  sound environmental objectives; social responsibility; promotion of economic growth; and continuous improvement in technology and cultural practices."]
[2013,"September","Soybean seed royalties in Brazil:  Reportedly, the country’s largest cooperative of soybean growers has encouraged its members to drop their pending lawsuits against seed-company Monsanto. Farmers sued Monsanto for collecting royalties on improved soyseed between 2010 and 2012, claiming that the company’s right to do so had expired in 2010. Farmers have been advised to withdraw their suits after Monsanto has offered to sell its newly developed soyseed (Intacta RR2) at a 16 percent discount to Brazilian farmers."]
[2013,"September","GM soybean:  In the United States, a double herbicide-tolerant GM soybean variety developed by Bayer CropScience has received official clearance for commercial use. Reportedly, the new seed is unlikely to pose plant risks. In its environmental assessment, the concerned agency stated that weed control has become one of the main challenges in national soybean production, echoing concerns about the emergence of weeds resistant to glyphosate. The new soybean variety offers growers the possibility to use isoxaflutole herbicides in addition to glyphosate.   "]
[2013,"September","Environmental performance of biofuels including ILUC:  Estimates produced by different sources regarding the GHG emission reduction potential of various biofuels – including the effect of indirect land use chances (ILUC) – continue to differ widely depending on assumptions made and econometric models used. A study recently published in the United States seems to confirm that an improved understanding of land use, crop yields and forest use – at a regionalized level – can significantly alter the GHG emission reduction values attributed to individual biofuel pathways. Representatives of the biofuel industry have reiterated that such divergence of results casts serious doubt on the use of ILUC parameters for policy making, notably in the European Union."]
[2013,"November","BRAZIL – investment in public storage: As envisaged under the 2013/14 agricultural policy package (see MPPU Sep.’13), the storage capacity of Brazil’s state-run food supply company CONAB is going to be expanded in an effort to allow better domestic supply control, thus preventing local price hikes. Real 500 million of public funds have been earmarked for the project that comprises the construction of 10 new storage facilities and the modernization of CONAB’s 84 existing facilities. Upon project completion, the country’s public storage capacity should rise to 2.81  million tons (compared to today’s 1.96 million tons)."]
[2013,"November","CANADA – support for mustard and camelina seed:  Research to improve the yield and quality of mustard seed and to develop commercially viable varieties of camelina sativa are set to benefit from public funding. For mustardseed, research will aim at raising the crop’s competitiveness and profitability, while in the case of camelina, the objective is to introduce a rotational oilcrop that adapts well to dry and marginal conditions while also yielding a high-value, non-food oil.    "]
[2013,"November","CANADA / EUROPEAN UNION – trade agreement:  The two countries have reached an agreement in principle of the Comprehensive Economic and Trade Agreement (CETA). Canada’s rapeseed industry has welcomed the agreement, saying that it will remove trade barriers in addition to creating mechanisms to regulate trade and prevent disputes. In particular, the agreement was said to (i) eliminate import tariffs on Canadian rapeseed oil entering the EU and liberalize trade in canola and canola products; (ii) call for cooperation on matters concerning biotechnology; (iii) offer mechanisms for preventing and resolving trade issues related to plant health and food safety issues – all critically important areas affecting Canadian/EU trade in rapeseed. The Canola Council of Canada estimates that the elimination of import tariff on rapeseed oil would allow Canadian exporters to raise their sales to the EU by up to CAN$ 90 million per year.            "]
[2013,"November","CHINA – biodiesel importation:  Reportedly, China’s biodiesel imports increased in recent months as trading companies started to take advantage of tariff and other trade incentives offered by the government to stimulate domestic biofuel consumption. While the importation of diesel is strictly regulated and local diesel sales are subject to consumption taxes, biodiesel imports from ASEAN countries are duty-exempt (as long as they contain at least 30 percent biofuel). Although detailed import statistics are not available, Malaysia, Indonesia and Thailand are said to be the main import origins.     "]
[2013,"November","CHINA – management of state soybean reserves:  Between early August (when 2013 government sales commenced) and mid-October, an estimated 2.4 million tons of soybeans have been sold through public auctions (see also MPPU Sep.’13). From September onward, most of the soybeans offered were from the 2010 harvest and sale prices ranged Yuan 4012–4082 per ton. According to market observes, the impact of state auctions on the country’s soybean imports has been limited as sales were mostly directed to crushers in central China or food companies that produce tofu and soy sauce. Reportedly, public sales were suspended mid-October as state-owned companies started preparing for procurement operations from the new harvest."]
[2013,"November","CHINA – rapeseed imports from Russia: The government decided to authorize rapeseed imports from Russia via the border city Manzhouli. Until now, purchases were only allowed from Canada, Australia and Mongolia, Reportedly, importation was liberalized to help meet China’s steadily growing demand for rapeseed. In recent years, China has become increasingly dependent on imported rapeseed, and, with urbanization leading to a shortage of farmland, China started engaging in overseas farming – including rapeseed cultivation in neighbouring Russian provinces.      "]
[2013,"November","EUROPEAN UNION – biodiesel duties - Anti-dumping duties:  The provisional anti-dumping duties imposed earlier this year on imports of biodiesel and biodiesel blends from Argentina and Indonesia are expected to be replaced with definitive ones by end November (see MPPU June’13). The definitive duties, which are producer-specific, will likely range Euro 215–250 per ton in the case of Argentinean producers and Euro 120-180 for Indonesian companies – significantly higher than the preliminary duties. Reportedly, the governments of Argentina and Indonesia intend to challenge the duties at the European Court of Justice or the WTO. Argentina already lodged a separate case at the WTO last May concerning alleged EU non-tariff barriers regarding the importation and marketing of biodiesel as well as subsidies the EU was providing to domestic producers. Industry representatives in Argentina and Indonesia claim that the punitive duties will have massive repercussions for their export-oriented biodiesel industries. "]
[2013,"November","EUROPEAN UNION – biodiesel duties -  Anti-subsidy duties:  The European Commission confirmed its decision not to pursue its anti-subsidy investigations concerning biodiesel imports from Argentina and Indonesia. The decision was taken after the European biodiesel industry opted to withdraw the related complaint (see also MPPU Sep.’13). The decision has no implications for the above anti-dumping case."]
[2013,"November","INDIA – rapeseed support price:  Reportedly, the official procurement price for the forthcoming rabi rapeseed crop has been raised to Rupees 30 500 per ton compared to Rupees 30 000 last year – marking a modest increase, especially compared to the two preceding years."]
[2013,"November","INDIA – vegetable oil export policy: The official minimum export price for packaged and branded edible oils introduced in January 2013 (see MPPU Feb.’13) has been lowered from formerly USD 1500 per ton to USD 1400 so as to align prices with the recent slide in international quotations. The country’s ban on bulk exports of vegetable oils remains in place.   "]
[2013,"November","INDIA – promotion of oilseed production: The government established the National Mission on Oilseeds and Oil Palm (NMOOP). The objective is to boost domestic oilseed production so as to better meet the country’s rising edible oil demand. Targets set for the 12th Plan Period (2012–2017) include: raise annual oilseed output by 6.58 million tons; bring an additional 125 000 ha under oil palm cultivation and lift FFB-yields to 1.5 tons per ha; and increase the collection of tree-borne oilseeds to 1.4 million tons – which should allow lifting  total domestic output of vegetable oil by 2.48 million tons per  year (of which annual crops, oil palm and tree-borne seeds would contribute, respectively, 1.7, 0.6, and 0.18 million tons). Under the initiative, which is meant to build on the achievements of earlier missions, the following activities are envisaged: varietal replacement and increasing the availability of quality planting material; raising irrigation coverage for oilseeds from 26 to 38 percent; diversification of area from low-yielding cereals to oilcrops; inter-cropping of oilseeds and use of fallow land; and enhancing procurement, collection and processing operations."]
[2013,"November","INDIA – olive oil standards:  As olive oil is becoming better known and more widely used in the country, the country’s Food Safety and Standards Authority decided to issue regulations for the domestic olive oil market. The aim is to standardize the (mostly imported) product so as to prevent impurities, adulteration and other health-related problems.                       "]
[2013,"November","INDIA – oilseeds and edible oil marketing controls:  Nationwide provisions limiting the amount of stocks (of oilseeds, edible oils as well as pulses) that private traders are allowed to hold have been renewed for another year until September 2014. The measures is meant to prevent hoarding and thus upward spirals in food prices. Food price inflation is said to have accelerated to a three-year high in August.     "]
[2013,"November","INDONESIA – land distribution policy:  Legislation limiting the size of plantations throughout the country has come into force (see also MPPU Aug.&June’13). Among the eleven plantation crops concerned is oil palm, for which the maximum permitted plantation size has been set at 100 000 ha. The law will only applies to new plantations, i.e. is not retroactive. Furthermore, state-owned firms, cooperatives, and publicly listed firms in which small investors hold a majority stake are exempted. The law also mandates new plantation firms to reserve part of their land for development by local farmers as well as to gradually divest part of new oil mills to cooperatives. Queries about the new rules have been brought up in industry circles: for instance, it remains unclear how plantations with licenses that are about to expire and exiting firms that wish to expand will be treated; also, there are doubts as to whether local smallholder communities will have the funds (or the access to finance) required to buy stakes in new plantation firms; finally, the new restrictions are said to compromise the nation’s plan to lift domestic palm oil production to 40 million tons by 2020.         "]
[2013,"November","INDONESIA – soybean import policy:  During the last few years, the government implemented a variety of measures aimed at improving the domestic soybean supply situation, thereby preventing price surges in soy-based foods (see MPPU Nov.’12 and Apr.&June’13). Under pressure to further calm the market, the government recently decided to temporarily relax the rules governing soybean importation: via the suspension of import quotas, permits and registration requirements it hopes to widen participation in oilseed trade, thereby improving domestic supply flows. Reportedly, the government also decided to remove newly introduced price ceilings for domestic sales of tempe and tofu as well as to suspend again soybean import duties. These new measures come after Indonesia’s anti-monopoly regulator started an investigation into the country’s soybean trade and into the system of issuing official import permits."]
[2013,"November","INDONESIA – biodiesel policy:  In line with recent announcements, higher blending rates for diesel fuel have come into effect in October – see MPPU Sep.’13 for details. Under the new regulation, blending requirements will be mandatory rather than voluntary. In principle, the new 10% blending requirement for transportation fuel should drive annual biodiesel consumption for that type of use close to 1.8 million tons (compared to today’s estimated use of 0.6 million tons today, which remains well below the country’s official target). At that level, biodiesel production (for use in domestic transportation fuel) would absorb over 6% of annual palm oil output – up from 2–3% at present (and not counting biodiesel produced for other domestic uses and for export). The country’s currently installed production capacity – estimated at around 4 million tons – is said to be more than sufficient to meet the new domestic blending requirement.                "]
[2013,"November","KOREA (REPUBLIC OF) – state reserves:  Reportedly, the government has decided to set up public stocks of wheat and soybeans. Until now only rice reserves were held."]
[2013,"November","MALAYSIA – biofuel policies:  The government confirmed that mandatory blending of diesel with palm oil-based fuel will be raised to 7 percent (up from currently 5 percent), possibly starting in December (see also MPPU Sep.’13). Reportedly, talks with all concerned parties – especially car engine manufacturers – are nearing conclusion. Based on industry sources, biodiesel producers are ready to raise their output to the required levels. Some market observers questioned whether biodiesel production would be sufficiently profitable at the current palm oil/mineral oil price ratio.       "]
[2013,"November","PARAGUAY – soybean export taxation: In October, the bill introducing a 10 percent tax on the country’s soybean export (see also MPPU June&Aug.’13) received final approval by Congress – but was subsequently vetoed by President H. Cartes, who argued that, in the medium to longer term, the tax would distort and set back the country’s grain trade. Reportedly, the farm industry welcomed the veto, as local medium/small-sized growers and small traders fear that the tax would be passed on to them by the big multinational trading firms. The bill will now return to Congress for further review.        "]
[2013,"November","PERU – fishing quotas:  The government has set this season’s catch quota well above last season’s multi-year low. The higher quota is expected to allow fishmeal/oil production and exports to partially recover from last year’s depressed level (see MPPU Dec.’12).   "]
[2013,"November","SOUTH AFRICA – biofuel policy:  The government informed that blending of diesel with biofuel – at a 5 percent rate – will be become mandatory from October 2015. By making blending obligatory and announcing the implementation date well in advance the government hopes to encourage investment into biodiesel development, production and infrastructure. Apparently, the economic incentives provided to date have not been sufficient to attract investors. The main feedstock for biodiesel production will be locally grown soybean, rape and sunflower seed.      "]
[2013,"November","UNITED STATES – agricultural support: End of October, members of the two chambers of Congress commenced formal negotiations on the nutrition and agriculture components of the Farm Bill (see also MPPU Aug.’13). Their task is to reconcile the distinct versions approved by the two Houses. The 2008 Farm Bill, which had been extended until September 2013, expired. In the absence of a Farm Bill, crop insurance and crop subsidy programmes continue to operate: the former are permanently authorized and the latter remain in place through the end of the 2013/14 marketing year. In case Congress failed to reach an agreement by the end of this year, agricultural policies would revert back to laws passed in the late 1940’s.          "]
[2013,"November","UNITED STATES – biofuel policy - Federal support:  New funding by the US Department of Energy towards biofuel research and continued support payments for producers of advanced biofuel by the US Department of Agriculture have been reported (‘advanced biofuels’ are defined as fuels produced from renewable biomass other than maize; eligible feedstock include crop residues, agricultural waste, vegetable oil and animal fat)."]
[2013,"November","UNITED STATES – biofuel policy -  2014 national blending targets:  Required to finalize mandatory blending requirements for 2014 by end-November, the US Environmental Protection Agency is currently engaged in  consultations with stakeholders. According to unofficial sources, proposals under consideration include national blending volumes below the levels set in the 2007 RFS programme. The Agency informed that it will take into account infrastructure- and market-related factors and that it could use flexibilities in the RFS statute to propose blending levels below the originally set targets. Private sources reported that, for biodiesel, a proposal to keep total blending volumes at the current level of 1.25 billion gallons (around 4.2 million tons) was under consideration. \nAccording to industry sources, this year’s actual biodiesel production could climb to a record 1.7 billion gallons (or 5.7 million tons)."]
[2013,"November","UNITED STATES – biofuel policy -  State regulations:  Minnesota, the first state to mandate the use of biodiesel back in 2005, is set to promote biodiesel consumption further. Currently requiring a year-round 5 percent diesel/biofuel blend, next year, diesel sold during the July-October warm-weather period will have to contain 10 percent biofuel. From 2015, B10 will be mandatory from May to October. In Minnesota, one of the country’s top soybean-growing states, biodiesel is mostly soyoil-based."]
[2013,"November","APEC – trade facilitation for selected goods:  In 2012, members of APEC, the Asia-Pacific economic forum, agreed on a list of so-called ‘environmental goods’ or EGs (defined as goods that directly and positively contribute to ‘green growth’ and sustainable development objectives) on which APEC membership would reduce applied tariff rates to 5 per cent or less by the end of 2015. Last October, responding in particular to calls from Indonesia, APEC agreed to allow member states to propose additions to the EG-list, opening the door to all products that help enhance rural development, contribute towards sustainable and inclusive development, and alleviate poverty. Reportedly, Indonesia plans to propose the addition of several goods, especially palm oil. Roughly one third of Indonesia's (as well as Malaysia's) palm oil shipments are directed to APEC member states, which include important buyers such as China, Singapore, Vietnam, the Russian Federation and the United States.  "]
[2013,"November","Soybean pest resistance:  Brazil’s state-run agricultural research agency EMBRAPA is working on genetically modified legumes resistant to the golden mosaic virus. Every year, the disease creates considerable damage to the country’s leguminous crops, including soybeans. The first resistant varieties are expected to be ready for marketing in 2015. GM technologies are reported to be key for the development of varietal resistance. EMBRAPA opted to employ the technique even if GM foods are not readily accepted in certain markets such as the EU.       "]
[2013,"November","Oil palm joint ventures - Malaysia/Pakistan:  Reportedly, companies in Malaysia and Pakistan are considering to  form joint ventures to set up oil palm plantations in the coastal areas of Pakistan. Pakistan is said to welcome foreign investments given the country’s rising dependence on imported vegetable oils, notably palm oil. In Malaysia, state-owned plantation company FELDA is ready to send a team of experts to explore the possibility oil palm cultivation in Pakistan."]
[2013,"November","Oil palm joint ventures -  Singapore/Tanzania:  Reportedly, a Singaporean firm and Tanzania’s state-controlled National Development Corporation signed a joint venture to establish an oil palm plantation  and a processing plant in Tanzania’s coast region. Under the project, which will include an out-grower scheme, local farmers are supposed to benefit from training, extension services, financial support and a reliable market for their products."]
[2013,"November","Africa – progress in oilseed production:  Advances in oilseed production are reported from Uganda and Zimbabwe. In Uganda, a government-backed public-private partnership, the Vegetable Oil Development Project, has entered its second phase. The project’s objective is to enhance domestic production of oilseeds, improving per capita vegetable oil intake. Oilseeds promoted comprise soybean, groundnut, sesame and sunflower seed and, recently, also oil palm. A total of 136 000 smallholders are said to be involved in 50 districts. In Zimbabwe, soybean production is reported to have risen to 150 000 tons this year – compared to 70 000 tons last year and the historic low of 37 000 in 2010. According to the National Soybean Promotion Task Force, to fully tap the country’s soybean production potential, it will be necessary to further strengthen extension services and to secure continued policy support, backed by financial assistance.        "]
[2013,"November","Olive oil standards:  A recently published study by the United States International Trade Commission suggests that current international standards for extra virgin olive oil are widely unenforced, allowing a wide range of olive oil qualities to be marketed as “extra virgin”, possibly leading to mislabeled and adulterated products. Supported by the study’s findings, US producers have called for a national olive oil marketing order aimed at protecting the competitiveness of US-produced olive oil – a proposal that met with opposition from importers and is bound to create tension between the world’s major supplying countries. As a matter of fact, Australia adopted a national olive oil standard in 2011, which, however remains of a voluntary nature. Also India intends to regulate its olive oil market (see country-item above). The benchmark for international quality standards continues to be set by the International Olive Council, whose norms regulate the bulk of world trade in olive oil."]
[2013,"November","Certified sustainable palm oil - Global production and trade:  Current global  production capacity of RSPO-certified sustainable palm oil (CSPO) has been estimated at 8.2 million tons per annum, representing nearly 15 percent of total palm oil output. For comparison, in 2012, 6.7 million of palm oil were certified and, in 2009, only 0.5 million tons. Production and trade of certified palm oil has expanded rapidly – but so has global palm oil production, say market experts. Critics point out that the expansion in CSPO use occurred primarily via certificate trading, notably RSPO’s GreenPalm book & claim mechanism, which does not involve product segregation and traceability. It is important to note that the market value of sustainability certificates has dropped from USD 50 per ton in 2008 (when they were launched) to only USD 3 today. The sharp fall implies significantly lower financial incentives for palm oil producers to become certified. Although buyers of certificates – food manufacturers and retailers – tend to benefit from cheap certificates, the danger is that end-consumers lose confidence in the ability of certificate trading to genuinely enhance environmental and social sustainability of palm oil production in supplying countries."]
[2013,"November","Certified sustainable palm oil -  European RSPO Summit:  RSPO organized its first European summit with a view to encourage local industries to increase demand for certified sustainable palm oil. Considering that the region relies heavily on imports to meet its consumption needs for palm oil, Europe was said to carry an indirect responsibility for the environmental and social issues associated with overseas palm oil production. The hope was expressed that other large consuming nations, notably India and China, would follow Europe’s example with regard to the sourcing of certified palm oil. Reportedly, participants urged policymakers in consumer markets to support the sourcing of certified produce and to incentivize its adoption by the industry. Governments in producing countries, on the other hand, were urged to integrate strict sustainability standards into national legislation and to improve the mapping of concession rights to ensure certainty of land ownership and avoid land conflicts."]
[2013,"November","Certified sustainable palm oil - National sourcing commitments:  Collective industry efforts to source only certified sustainable product made a further stride forward with the launch, in September, of the German Forum for Sustainable Palm Oil and the French Alliance for Sustainable Palm Oil. Similar initiatives already in place in the Netherlands, Belgium and the UK are said to have played a key role in accelerating demand for certified sustainable palm oil. Evidently, Europe’s changing regulatory environment – with EU legislation mandating the labeling of all vegetable oils on food products by December 2014 – and increased consumer awareness of environmental and health aspects have put the industry under pressure.  The German Forum is backed by the government and includes important industry players as well as civil society groups. Members committed to use only certified sustainable palm oil by the end of 2014, and the group aims at achieving as soon as possible full segregation and traceability of certified produce in the German, Austrian and Swiss market. The French Alliance brings together food companies and trade organizations that have committed to source only certified produce by 2015, while the end-goal is 100 percent sustainable and traceable palm oil. The initiatives aims at raising awareness among all  stakeholders and reconciling demand growth with the protection of natural resources, biodiversity and local communities. Furthermore, concerns about the health profile of palm oil will be addressed. "]
[2013,"November","Vegetable oil-based fuels - Certified sustainable camelina oil-based biofuel:  Reportedly, a Spanish company has gained certification by RSB (Roundtable on Sustainable Biomaterials) for its production of sustainable road/aviation fuel from camelinaseed oil. The certification covers the company and its facilities as well as 150 individual farmers, who, located in arid areas, found camelina to be suitable for inclusion in their crop rotations."]
[2013,"November","Vegetable oil-based fuels -  Oil palm waste-based biofuel:  A US-based company plans to produce crude oil from palm oil production residues, possibly contributing to reduced environmental pollution (air, water and oil-based) in palm oil industries around the world. Reportedly, 4-6 metric tons of agricultural waste are generated for each metric ton of palm oil. The company intends to convert wet, unprocessed palm oil residues into fuel using a technology that does not require drying of the biomass, thus minimizing energy losses and reducing production costs. The final product can be either burned as coal replacement or refined further into transportation fuels. Production costs are said to amount to USD 75–85 per barrel (approx. USD 570 per ton). Next year, the company plans to ship palm oil residues to the Netherlands for testing in a pilot plant. After 2–3 years, commercial production could start in Southeast Asia, where the biofuel is expected to be marketed. Contracts for regular supply of residues will have to be secured and partnerships with plantation firms are envisaged."]
[2013,"December","ARGENTINA – biodiesel policy: The government decided to raise mandatory blending of diesel transportation fuel with soyoil-based biodiesel from formerly 8% to 10%. The new rate will apply from 1st January 2014 and also concerns fuel burned for power generation. The increase was introduced to compensate domestic biodiesel producers for European trade lost after the EU imposed strict anti-dumping duties on biodiesel imports from Argentina earlier this year. Once fully implemented, the higher rate is estimated to raise annual domestic biodiesel consumption by 450 000 tons. Private sources estimate current biodiesel consumption at no more than 850 000 tons per year. According to government officials, the sales price of blended fuels is going to remain unchanged. The government-set price is said to  guarantees producers a fixed profit margin of 4%."]
[2013,"December","BRAZIL – biodiesel policy:  Reportedly, the government is evaluating the possibility of an increase in the mandatory blending rate of biodiesel. Although no further details  have been provided, private sources believe that the rate would be raised from 5% (in place since January 2005) to 7%. Currently estimated at 2.65 million tons, annual domestic biodiesel demand would climb to 3.7 million tons as a result of the higher blending rate. Estimates for the country’s current biodiesel production capacity range between 6 and 7 million tons. During the last two years, the industry has expanded strongly due to investments by multinational trading firms and crushers.  "]
[2013,"December","BRAZIL – port investment:  According to industry sources, the new federal law regulating investment in port infrastructure (see MPPU no.48, June’13) is likely to favour exportations of soybeans over shipments of soy products, in particular meal. The new regulations are said to benefit those ports that move most product by weight, thus putting at a disadvantage operators that ship higher-value products. Loading soymeal is more time consuming – and thus more expensive – than moving soybeans; consequently, meal exports are expected to suffer (in terms of volume) despite their higher value.            "]
[2013,"December","BRAZIL – pest control:  To control the latest outbreak of caterpillar helocoverpa armigera   the government has declared the state of emergency in four of the country’s central states – all of them growing soybeans. By doing so, it temporarily permitted the importation of a powerful pesticide. As fighting the pest involves multiple applications of insecticide and destruction of plants, a surge in production costs is expected. Last season, the caterpillar’s  attacks throughout the country caused an estimated loss of 4.7 billion USD. First identified in February 2013, the insect has spread rapidly due to inadequate farming practices, say researchers. "]
[2013,"December","CHINA – state rapeseed oil reserves:  Official resources have confirmed the presence of imported produce in the state’s temporary rapeseed oil reserves – thus revealing transactions in violation of state procurement policies that require state purchases to come exclusively from domestic sources so as to protect the interest of local producers (see also MPPU no. 51, Sep’13). "]
[2013,"December","CHINA – biodiesel policy:  Reportedly, the government will start taxing the consumption of fuels blended with biodiesel whenever the biodiesel content is less than 30 percent. The planned tax will match the existing consumption tax on conventional fuel. Blends with higher biodiesel content will remain tax exempt. Reportedly, the measures is meant to stop tax-free importation of low-rate blends into the country. Imports of such blends are said to have surged this year – encouraged by the absence of consumption taxes."]
[2013,"December","CHINA – soybean support - Import policy:  Reportedly, imported soybeans will be barred from entering Northeast China and Inner Mongolia. The ban aims at shielding soybean production in the country’s traditional soybean growing areas, where plantings have been falling strongly in recent years."]
[2013,"December","CHINA – soybean support -  Public stock releases:  A total of 2.43 million tons of soybeans have been sold through state auctions between August and October this year. Public sales aimed at improving the domestic supply situation, in particular for processors in the Northeast who primarily use domestically grown soybeans. "]
[2013,"December","CHINA – soybean support - Local procurement:  Public procurement of soybeans from this year’s harvest has been confirmed at Yuan 4 600 per ton (760 USD) – unchanged from last year. State purchases will be concentrated in Northeast China and are scheduled to last until April 2014.  "]
[2013,"December","EUROPEAN UNION – biodiesel trade - Anti-dumping duties:  Provisional anti-dumping duties on biodiesel imports from Argentina and Indonesia have been replaced with definitive ones. For the next five years, Argentina’s producers will have to pay between 217 and 246 Euros per metric ton (corresponding to an ad-valorem rate of 24.6 percent on average), while Indonesian producers will be faced with duties ranging 122 to 149 Euros (or 18.9 percent on average). Both countries said they will formally appeal the duties.   "]
[2013,"December","EUROPEAN UNION – biodiesel trade - Supply control:  Reportedly, Spain has confirmed that during 2014-2015 it will only allow a given volume of biodiesel imports from selected EU companies – effectively barring suppliers from non-EU countries."]
[2013,"December","INDIA – groundnut procurement:  Not used since 2001, state procurement of groundnuts is set to resume following this year’s bumper harvest which drove local prices for the crop below the government’s minimum support price. With market prices reported between 30 000 and 37 500 Rp per ton (unshelled basis)  – as against the farmer support price of 40 000 Rp (USD 653) – local purchase operations on behalf of the central procurement agencies are ready to start, notably in Gujarat, the nation’s main groundnut growing state.         "]
[2013,"December","INDONESIA – soybean policy:  Reportedly, the government again instructed BULOG, the state-run Board of Logistics, to import soybeans with a view to stabilize prices in the domestic market (see also MPPU Aug./Sep./Nov.’13). In August this year, BULOG and other selected players were granted permission to import soybeans for direct distribution to the country’s tofu and tempe producers. Reportedly, imports are allowed whenever the domestic soybean price rises above Rp 7 400 per kg (USD 0.62). At the same time, according to unofficial sources, the government is about to reconsider its official self-sufficiency policy for soybeans – possibly replacing the same with more realistic targets, acknowledging that the country lacks comparative advantages for growing soybeans. "]
[2013,"December","INDONESIA – variable palm oil export tax:  Following the recent gradual strengthening in international palm oil values, for December, the country’s export tax on crude palm oil has been set at 10 percent, compared to the 9 percent rate in place since September."]
[2013,"December","MALAYSIA – variable palm oil export tax:  Following the recent gradual strengthening in international palm oil values, for December, the country’s export tax on crude palm oil has been set at 5 percent, compared to the 4.5 percent rate in place since last March."]
[2013,"December","MALAYSIA – oil palm support:  According to unofficial sources, the government may limit financial support provided to the palm oil sector in 2014. Reportedly, the following programmes could be affected: National Key Economic Area programmes for palm oil, Palm Oil Industry cluster projects, schemes to replant aging palm trees, and the Cocking Oil Subsidy Scheme.          "]
[2013,"December","SPAIN – olive oil consumption:  From January 2014, the country’s restaurants and hospitality sector will be required to serve olive oil only in its original packaging, identifying the brand. The measure is meant to prevent refilling of old bottles with lower quality oil. Similar regulations are said to be in place in Italy and Portugal. Attempts to introduce EU-wide legislation to this effect have been abandoned earlier this year (see MPPU no.48, June ‘13). "]
[2013,"December","UNITED STATES – artificial trans fats: The US Food and Drug Administration (FDA) has published a proposal to ban artificial trans fats from the food supply, citing proven adverse health effects (heart diseases). The public and the industry have been given 60 days to comment on the FDA proposal. Since 2006, FDA requires man-made/artificial trans fats (i.e. those generated during vegetable oil hydrogenation – a process widely used in food manufacturing) to be listed on product nutrition labels, and proper bans are in place for parts of the food chain in a number of US states. As a result of these measures, the presence of trans fats in the American diet is reported to have fallen considerably (see MPPU July’10, Feb.’11, Mar.&June’12) – as food manufacturers started reformulating their recipes to reduce trans fat content and thanks to the development of functional oilseeds whose oils don’t require hydrogenation (see MPPU Jan.&Mar.’09, Oct.’10, Feb.’11, June&Aug.’13). However, concerns remain that current labeling practices are misleading to the public, while, on health grounds, zero intake of trans fats is widely recommended (see also MPPU no. 22, Feb’11). Reportedly, complete elimination of trans fats (and hence partially hydrogenated oils) from the food chain – as now proposed by the FDA – would prove technically challenging to food processors. FDA estimated the initial cost of removing trans fats from the food supply at about USD 8 billion. With respect to individual oils, soybean oil is particularly affected by hydrogenation and, as a result, a trans fat ban could raise (at least temporarily) demand for oils other than soyoil, notably rapeseed and sunflower oil but also tropical oils.              "]
[2013,"December","UNITED STATES – biofuel policy: On November 15th,  the US Environmental Protection Agency (EPA) proposed to keep next year’s mandatory consumption of biomass-based diesel at 1.28 billion gallons (or 4.28 million tons) – the same level as this year. EPA will accept comments for a period of 60 days, following which it is going to publish its final decision. The targets proposed for 2014 diverge from the RFS standard issued in 2007, which envisaged a gradual expansion in consumption up to the year 2022, with total biodiesel consumption possibly reaching 2 billion gallons in 2014. Reportedly, EPA has adjusted the original targets for current market and technology realities. The proposed 2014 target ranges well below the industry’s installed production capacity – estimated at close to 3 billion gallons – and compares to an actual total output this year of about 1.7 billion gallons. Although this year’s excess production (relative to the compliance target of 1.28 billion gallons) may be carried over into 2014, that would reduce next year’s effective target even further. Already braced for another expiration of the blenders tax credit at the end of December, the country’s biodiesel producers are very concerned about EPA’s proposal. The national biodiesel federation has suggested that the 2014 target be raised to today’s actual production level (i.e. 1.7 billion gallons). Furthermore, it claims that, with consumption level stalled at 1.28 billion gallons, close to 8 000 biodiesel-supported jobs would be lost and USD 4.6 billion of total economic impact would be foregone. "]
[2013,"December","Certified sustainable palm oil - Certificate trading:  International trade in GreenPalm certificates for palm oil, palmkernel oil and palmkernel expeller is reported to continue expanding: in November 2013,  a record 717 431 certificates (worth USD 3.2 million) have been traded, of which an all time-high 667 982 concerned palm oil. It appears that the GreenPalm \nbook & claim mechanism continues to be the mostly widely used means for RSPO-certified products to reach consumers – compared to the alternative means of mass balance calculation,   full segregation, and identity preservation. The GreenPalm option allows certified growers to convert their product into certificates: one ton of certified product corresponds to one certificate. Certificates are then offered for sale through a central, dedicated platform. Product manufacturers seeking palm products can buy these certificates, offsetting their physical oil with the equivalent amount of certificates – which allows them to claim that their product supports the production of sustainable palm oil. In fact, the full value of each certificate is channeled to RSPO-certified producers who thus earn a premium for applying sustainable production methods. The value of one crude palm oil certificate currently stands around USD 2.60 (way below the level recorded when certificate trading was launched in 2008). It is important to remember that certificate trading bypasses the supply chain and therefore does not entail product segregation and traceability, which remains the most effective – as well as the most demanding and costly – means to source sustainable produce. (See also MPPU Dec.’10, June&Dec’11, Oct.’13)\n"]
[2013,"December","Certified sustainable palm oil - Competing certification systems:  Reportedly, two competing certification programmes, the Roundtable on Sustainable Palm Oil (RSPO) and Indonesian Sustainable Palm Oil (ISPO) are ready to enter into strategic cooperation. The initiatives, which builds on the collaboration of RSPO, the ISPO Commission, the Indonesian Ministry of Agriculture, the United Nations Development Program (UNDP) and representatives of the private sector, aims at assisting in particular Indonesian palm oil companies, especially growers, in their efforts towards fully adopting sustainable practices. The first initiative under the new partnership is going to be a joint study to closely examine both voluntary international standards (such as RSPO) and mandatory national standards (like ISPO). Conducted by an external, independent certification body, the planned study is expected to clarify disparities and identify synergies between RSPO and ISPO. The goal is to \nremove barriers and challenges faced by growers due to the existence of two different standards, and to facilitate certification while guaranteeing a rigorous  audit process. According to market experts the use of alternative standards is leading to high costs for producers as well as unnecessary confusion among buyers – while contributing little to enhancing sustainability in palm oil production. Furthermore, a key challenge that remains largely unaddressed consist in providing small producers with access to an affordable and credible certification system – also taking into account that certified products are fetching an only modest premium in the market (see above). Overall, criticisms continue that the various certification mechanisms in place lack credibility and are not sufficient to stop unsustainable production practices.\n"]
[2013,"December","Sustainable palm oil production/sourcing - Production commitment:  One of the world’s leading producers and traders of palm oil, Singapore-based Wilmar International, pledged to end deforestation throughout its supply chain. The company also committed not to destroy carbon-sequestering peatlands, to protect forests that are habitat for endangered species, and to protect the rights of workers and of the forest communities where it operates. Reportedly, steps will also be taken to progressively reduce greenhouse gas emissions on the company’s existing plantations. Market observers said that, if fully implemented, Wilmar’s commitment could represent a major step forward for firms seeking sustainable palm oil. However, experts also cautioned that the necessary adjustments along the supply chain will require considerable time and are likely to pose numerous challenges."]
[2013,"December","Sustainable palm oil production/sourcing - Sourcing commitment:  Global consumer goods company Unilever, a major buyer of palm oil, stepped up its commitments towards sourcing sustainable palm oil:  by the end of 2014, all palm oil bought will be traceable to known sources, and, by 2020, all purchases will come from traceable and certified sources. The company expects – once it manages to fully trace its palm oil – to be able to identify and exclude suppliers that use unsustainable or illegal production methods. To be in a position to trace all its sources, the company plans to limit its roster of suppliers to between 10 and 20, compared to well over 100 at present. Furthermore, Unilever is determined to build its own palm oil facilities in Indonesia with a view to control the entire process from source. To achieve its goals, Unilever decided to join forces with global supplier Wilmar International.\n"]
[2013,"December","Adulterated edible oils:  Cases of edible oil adulteration have been reported from Sri Lanka and Taiwan Province. Most instances concern the blending of high-value oils – notably olive, grapeseed, coconut and sesame oil – with cheaper oils, resulting in consumer misleading. Reportedly, concerned health authorities have fined violators and stepped up their inspections and their consumer information services."]
[2013,"December","GMO labeling:  In a public ballot in the US state of Washington electors voted against a petition to introduce mandatory labeling of genetically modified ingredient in food products. The close miss follows a similar defeat in California last year. Supporters of mandatory labeling pointed to progress in other parts of the United States (notably Massachusetts, New York and New Hampshire) and said they would pursue their cause with lawmakers and regulators at federal level."]
[2013,"December","Africa oilcrop development - R&D projects:  Two US-funded R&D projects have been launched, both focusing on soybeans. First, a consortium of US universities and NGOs has secured a 5-year US federal research grant to work on soybean production in Sub-Saharan Africa. Aiming at increased food supply in the continent, the project is set to focus on (i) the improvement of soybean yields (via the identification of appropriate seed material, training of breeders and the introduction of best practices for production and seed management), (ii) finding ways to connect growers with crushers and markets, and (iii) the development of soy-based diets for poultry. Project activities will concentrated on Ethiopia, Ghana, Malawi, \nMozambique and Zambia. Second, funding for a 4-year project to support smallholder soybean production in Tanzania has been made available by the USDA. Under the project, assistance in production and marketing will be provided to up to 11 000 farmers. Project interventions will aim at improving the country’s soybean value chain and are expected to include the promotion of soy-based poultry farming.\n"]
[2013,"December","Africa oilcrop development - Private investments:  In addition to enticing Asian palm oil plantation companies (KLK, Olam, SIFCA, Sime Darby, Wilmar and others), the continent, and in particular West Africa, is also attracting oilseed crushers and seed oil manufacturers, given the region’s production deficit in edible oils. French oilseed company Sofiprotéol has announced new investments in Guinea and Senegal. Through various joint ventures, the company will be involved not only in edible oil imports but also in the cultivation and processing of groundnut and other annual oilseeds for the local market. Sofiprotéol launched similar enterprises last year in Morocco and in Senegal."]
[2013,"December","Brassica carinata:  A Canadian producers of carinata oil secured Roundtable on Sustainable Biomaterials (RSB) certification. The plant oil is primarily used as feedstock for fuel substitutes, including for the aviation sector (see also MPPU no.42, Dec’12). Reportedly, RSB certification is used by the airline industry to ensure that procured renewable aviation fuel is produced in an environmentally sustainable manner."]
[2014,"January","ARGENTINA – WTO complaint:  Argentina’s government has filed a formal complaint with the World Trade Organization (WTO) over the European Union’s decision to impose definitive anti-dumping duties on biodiesel imports from Argentina and Indonesia (see MPPU Nov. & Dec.’13). Allegedly, the EU’s calculations of the final anti-dumping duties were based on improper data. Should consultations to find a mutually a agreeable solution fail, Argentina may request that an independent panel of experts be established to look into the issue.  "]
[2014,"February","CANADA – export promotion:  Federal funding has been granted to a provincial farmer association for the promotion of food-grade soybean exports. The funding is part of Agri-Food Canada’s AgriMarketing Program. Currently, the country’s soybean exports, which have expanded considerably in recent years, are primarily directed to Japan, the EU and China."]
[2014,"February","CHINA – border inspections, import permits/restrictions - Olive oil:  A number of olive oil shipments originating from the EU have been denied entry to the Taiwan Province. The rejected cargoes are said to contain an unauthorized colouring agent. Reportedly, provincial authorities had increased border inspections of cooking oil imports in November last year, after the colouring agent had been detected in products sold on the local market."]
[2014,"February","CHINA – border inspections, import permits/restrictions - Rapeseed:  Reportedly, Chinese customs authorities detected hazardous pest bodies in a rapeseed cargo originating in Australia."]
[2014,"February","CHINA – border inspections, import permits/restrictions - Ukrainian soybean:  Soybeans (and barley) from Ukraine are now allowed to enter China as protocols on phytosanitary and inspection requirements have been signed by the two countries. Reportedly, Ukraine aims at reaching similar agreements for rapeseed and wheat."]
[2014,"February","CHINA – border inspections, import permits/restrictions -  Canadian rapeseed meal:  Imports of rape meal from Canada – which had been banned in January 2013 – are expected to resume pending the completion of on-site inspections of Canadian crushing facilities by Chinese officials. Canadian exporters hope to raise the volume of their exports to China to the levels recorded prior to 2013."]
[2014,"February","CHINA – border inspections, import permits/restrictions -  US origin DDGS:  A number of US cargoes of dried distillers’ grains (DDGS) have been rejected by Chinese officials following the detection of traces of a non-approved GM maize variety. The resulting temporary slowdown in DDGS imports could boost China’s import demand for soybeans (the country’s main protein source in livestock feed).               "]
[2014,"February","CHINA – stock policies:  According to official sources,   in 2014, China’s public stockholding system for soybeans is to be abandoned and replaced with direct subsidies to farmers. Details on when and how exactly the policy change will be implemented have yet to be provided. The new income protection system for soybeans will likely be introduced on a trial basis in the Northeast and in Inner Mongolia; region-specific subsidy payments should be based on target prices, with subsidies being granted to producers (or to consumers) whenever market prices fall below (or exceed) given target levels. The current procurement system for soybeans was introduced in 2008/09. The policy was aimed at stimulating domestic production in particular of non-GM soy varieties, which provide the basis for preparing tofu and similar products for local human consumption. The government started procuring soybeans when farm gate prices would fall below certain levels. Sales from public stocks were effected through public auctions, often with a view to check rises in local consumer prices. Over the years, this policy led to the accumulation of large and costly public inventories. The system attracted increasing criticism for generating distortions between domestic and global prices. In fact, crushers found it increasingly convenient to import soybeans rather than buying domestic produce. Furthermore, the procurement policy did not succeed in stimulating domestic soybean production. Reportedly, along with soybeans, the government is planning to dismantle also cotton stockpiling. By contrast, procurement and stockholding operations for rapeseed, maize and sugar should remain in place for the time being, as would minimum farm gate prices for wheat and rice. According to market observers any change in China’s cotton support policy are bound to significantly affect world trade, production and prices of cotton. For soybean, the impact should be smaller and only of a temporary nature, because crushers in the coastal region, where most of the country’s soybean processing takes place, are expected to continue to depend heavily on imports.        "]
[2014,"February","EUROPEAN UNION – GM soybean screening: Reportedly, new GM soybean variety ‘Optimum GAT’(modified to tolerate a particular group of herbicides) has been declared safe for import, processing and use as food and feed by the European Food Safety Authority (EFSA). The file is now with the EU Commission and Council for final clearance or otherwise.          "]
[2014,"February","EUROPEAN UNION – biofuel policy:  In the course of 2013, the EU Commission and Parliament submitted proposals to cap the use of food crop-based (or “first generation”) biofuels. The initiative aimed at reducing the risk that support granted to such biofuels would unintentionally harm the environment, displace food production and/or contribute to food price inflation (see MPPU Aug.’13 & Sep.’13). Eventually, in December, the EU Council refrained from imposing ceilings on the use of ‘first generation’ transport fuels. Members countries could not agree on a proposal to introduce a 7 percent cap, with some governments calling for a lower  threshold, while others favoured higher or no limits. The EU Council also rejected mandatory measurement, from 2020 onward, of GHG emission levels for each biofuel, including ILUC (indirect land use changes) effects – a requirement that had been endorsed by both the Commission and the Parliament. Although the discussion about alternative proposals is expected to go on, a final decision may have to wait until 2015, given the changes in EU institutions scheduled for the current year. As to the EU’s longer term climate and energy policy framework, in January, the EU Commission proposed the following targets for 2030: a mandatory GHG emission reduction of 40 percent (relative to 1990 levels); an EU-wide binding renewable energy share of at least 27 percent (which compares to the 2020 target of 20 percent); and indicative 25 percent energy efficiency gains."]
[2014,"February","EUROPEAN UNION – GSP implications:  Under the EU’s revised General System of Preferences or GSP (meant to help emerging countries by granting them easier access to the EU market), imports of palm oil,  palm oil-based oleochemicals and biofuels from Indonesia will no longer enjoy preferential duties as of this year (2014). Indonesia’s shipments are considered to have become competitive on a global scale and, consequently, have been classified as “graduated sectors”. Exports by Malaysia, the other main supplier of the products in questions, began to graduate from GSP status back in 1999. ","                    "]
[2014,"February","INDIA – vegetable oil import policy:  India has modified the import duty structure for vegetable oils:  the tax levied on imports of refined oils has been raised from 7.5 percent to 10 percent, while the import tariff for crude vegetable oils remains unchanged at 2.5 percent (see also MPPU Feb. ’13). As a result, the differential between refined and crude oil duties widened from 5 percent to 7.5 percent – a move meant to increase protection for the country’s refining industry, which was suffering from rising shipments of processed vegetable oils, notably refined palm oil. Last year, imports of refined palm oil surged (following the introduction of export incentives in Malaysia and Indonesia), pushing capacity utilization in Indian refineries below 40 percent. While welcoming the new tax structure, India’s processing industry reiterated that a duty differential of at least 10 percent would be necessary to persuade the trade to import crude oil rather than refined produce. However, considering government concerns about food price inflation, further increases in the import tariff for processed vegetable oils do not seem likely."]
[2014,"February","INDONESIA – soybean production support:  Since its introduction in July 2013, the government-set farm gate price for soybeans has been gradually raised (see also MPPU Apr. & June’13). Initially fixed at Rp 7 000 per kg, soybean farmers will be entitled to receive Rp 7 500 per kg (USD 630 per ton) during January-March 2014. Meant to stimulate domestic soybean production, the support price is reviewed quarterly, taking into account changes in production costs and profits, as well as food price inflation. Reportedly, since the scheme’s introduction, average soybean yields in the country have improved, leading to an increase in national output. "]
[2014,"February","INDONESIA – biodiesel policy:  During 2014, Indonesia’s biodiesel industry may absorb more palm oil than previously estimated (see MPPU Sep. & Nov. ’13). The government is determined to raise the share of locally produced biodiesel in domestic energy consumption, so as to scale down the nation’s dependence on mineral oil and gas imports. In line with the recently introduced requirement that all diesel fuel used in the transportation and energy sector be blended with 10 percent biodiesel, in 2014, two state-owned firms (the nation’s oil and gas company Pertamina and the country’s electricity distributor PLN) expect to purchase a combined 5 million tons of crude palm oil – way above last year’s level and a good 15 percent of total domestic palm oil output. If realized, these targets could temporarily curtail Indonesia’s exports availabilities, potentially affecting world supplies. Reportedly, industry officials warned that higher domestic biodiesel consumption will require further improvements in the country’s regulatory framework and pricing policy.                    "]
[2014,"February","INDONESIA – variable palm oil export duty:  Following the recent drop in international palm oil prices, the variable export tax on crude palm oil has been lowered to 10.5 percent in February, slightly below the 12 percent rate in place since December 2013. Reportedly, the government is also considering to reduce the export tax on refined palm oil in an attempt to counter the latest rise in import tariffs in India – a major buyer of refined palm oil from Indonesia (see above).    "]
[2014,"February","ISLAMIC REPUBLIC OF IRAN – food subsidy: Reportedly, the government started handing out food packages, which contained two liters of vegetable oil per month – to low income families, with a view to protecting them against rising food prices. According to local sources, the government’s initiative has raised concerns that the food handouts could gradually replace the monthly cash payments that the majority of Iranians receive since 2007."]
[2014,"February","PHILIPPINES – oil palm development:  Reportedly, the country’s official Coconut Authority (which is tasked to oversee the development of the domestic coconut and oil palm sector) is working on a 10-year roadmap for the country’s oil palm industry. The plan is expected to focus on the promotion of effective production, processing and marketing of palm oil and its by-products and will build on strong partnerships with private industry players. The initial target is to raise the area under oil palm cultivation to 300 000 hectares, against the current 57 000 hectares. Overall, the area suitable for oil palm cultivation has been estimated at 1 million hectares, all consisting of idle and unproductive land. Total investment required to develop the industry has been estimated at Pesos 212 billion (USD 4.7 billion), encompassing investments in plantations, processing plants and infrastructure. Reportedly, several foreign companies have expressed interest to invest in oil palm ventures, together with local partners, notably in Mindanao island."]
[2014,"February","RUSSIAN FEDERATION – GM soybean:  Based on a government decree that will enter into force in July 2014, cultivation of GM soybean will be permitted throughout the Russian Federation. Until now, the importation of selected GM varieties was allowed, but cultivation of GM crops in the country was limited to experimental trials. Considering that, prior to their cultivation, GM crops will have to undergo registration and certification, the first GM soybeans are not expected to be harvested before 2016/17."]
[2014,"February","THAILAND – biodiesel policy:  In December, the Thai government unveiled plans to raise the country’s mandatory biodiesel blending rate to 7 percent, effective January 2014, up from the 5 percent rate in place since end-2012. The higher blending rate would boost the processing industry’s annual demand for palm oil by an estimated 240 000 tons. Eventually, however, the planned B7 implementation has been postponed due to the recent slowdown in domestic palm oil production. In response to these changes, the industry has called for a flexible biodiesel policy that would rest on variable blending rates. Furthermore, the three year-old cap on the retail price for palm cooking oil has been criticized for causing distortions in the domestic palm oil market. With regard to the longer term, the government has decided to raise the official biodiesel production target for 2021 from 5.9 million liters/day to 7.3 million liters/day, which compares to a present output level of about 2.8 million liters/day. Currently installed production capacity is said to amount to 5.4 million liters/day.    "]
[2014,"February","UNITED STATES – farm legislation:  A new 5-year farm bill covering the period 2014-2018 has been passed by the US congress and signed by the US president. The new bill was long overdue: its 2008 version had expired in 2012 and was eventually extended until September 2013 (see MPPU Aug. & Nov. ’13). Compared to the previous bill, key elements of the Agricultural Act of 2014 include: (i) a trimmed nutrition assistance (or ‘food stamps’) programme; (ii) an expanded federal crop insurance scheme; (iii) a reformed dairy policy and a permanent livestock disaster assistance programme; (iv) consolidated and strengthened agricultural conservation measures; and (v) the elimination of direct payments to farmers.  In place of the old automatic payments to farmers (notably counter-cyclical and crop revenue payments) farmers will have the possibility to choose between two risk management tools:  the Agricultural Risk Coverage (ARC) programme that will protect farmers from revenue losses based on five-year average revenues, and the Price Loss Coverage (PLC) programme that will provide support based on pre-defined price floors. Under these schemes, producers will only receive assistance when they are threatened by risks outside their control, such as extreme weather or market volatility. Reportedly, both schemes maintain the decoupling of payments from a farmer’s current planted acreage, hence minimizing the influence on farmers’ decisions about what and where to plant. Compared to the previous bill, payment limits have been lowered and eligibility rules tightened. As to the enhanced crop insurance programme, its purpose is to further encourage farmers to invest in their own risk management, thereby reducing the need for public emergency relief interventions. Finally, with respect to marketing loans, the traditional Marketing Loan Program remains intact. Whether or not the changes introduced by the new bill will alter the way US support payments are notified at WTO level remains to be seen.    "]
[2014,"February","GMO labeling:  In the United States, a newly formed coalition of farmer, industry and non-governmental organizations (including biotech crop developers and stakeholders from various commodity sectors) is calling for the introduction of standards – at the federal level – for the safety and labeling of food products containing GM ingredients. In recent years, the GMO labeling issue has become increasingly controversial in the country. In the absence of harmonized and binding standards, food manufacturers adopted a mix of labeling practices, but low levels of transparency prompted consumers to file numerous class actions. Concerned about the existing legislative vacuum and about uncoordinated regulatory efforts by individual states, the newly launched private sector initiative set out to call for consistent federal answers to the pending GM food safety and labeling issue. Furthermore, the coalition would like the US Food and Drug Administration (FDA) to play a more prominent and active role. In an effort to regain the consumers’ confidence, industry players have proposed the following measures: (i) consistent labeling of GM and non-GM foods; (ii) mandatory notifications to FDA when new GM crops are introduced into the marketplace; (iii) FDA authority to issue special labeling norms to protect health and safety, while preventing labels from being false or misleading; (iv) allowing food manufacturers to label their products as “GMO-free” under certain conditions, while preventing claims that a food is less safe/more safe because of the presence or absence of GM ingredients; and (v) rules governing the use of the term “natural” on food packaging.  Importantly, mandatory labeling of GM ingredients does not appear in the proposal. Critics of GM crops warned that, under the proposed rules, consumers would still be misled. They reiterated their principal request that labeling of GM ingredients be made compulsory for all food products. Interestingly, in the meantime, some US food companies informed about their intention to eliminate GMOs from their products, while others said they were considering voluntary labeling of GM products."]
[2014,"February","Futures trading:  Paris-based futures exchange Euronext announced that, by end 2014, it will offer contracts for rapeseed meal and rapeseed oil, in addition to its existing rapeseed futures and options. The objective is to offer a full range of rapeseed derivatives to the growing food and feedstock markets, where price volatility is said to have risen in recent years. The planned  expansion is also meant to address the needs of the biodiesel sector, allowing EU fuel producers to hedge their bio-diesel price exposure.  "]
[2014,"February","Sourcing of certified sustainable palm oil -  Finnish biofuel producer Neste Oil informed to have achieved its palm oil certification target two years earlier than planned (see MPPU July ’09). Reportedly, since December 2013, 100% of the palm oil used by the company is certified sustainable by international certification systems approved in the EU, notably ISCC and RSPO-RED. Furthermore, all feedstock used can be traced back to the plantations and production sites where they come from."]
[2014,"February","Sourcing of certified sustainable palm oil -  Reportedly, US chocolate manufacturer Hershey has achieved its commitment to source 100% certified palm oil – via the RSPO mass balance calculation system – one year ahead of its original 2015 commitment. Furthermore, the company announced that it is going to work with its suppliers towards achieving fully traceable and sustainably-sourced palm oil by the end of 2014."]
[2014,"February","Soybean business – Brazil - Processing:  A large, export-oriented agribusiness firm in Brazil has closed one of its crushing plants, citing changes in the country’s taxation policy that are favouring soybean exports over soymeal/oil exports. Reportedly, the government’s decision to free the cooking oil industry from two specific taxes has left soybean processors with significant amounts of worthless tax credits. The new taxation policy is said to have lowered the crushing industry’s profit margins, leading to idle processing capacity."]
[2014,"February","Soybean business – Brazil - Shipping:  A large trading firm reported that it is ready to start shipping maize and soybeans through a new terminal in the northern port of Belem, next to the estuary of the Amazon. The company expects to move 1 million tons of grains in 2014, but plans to eventually expand shipments to 6 million tons annually, as well as to establish a barge system along one of the tributaries of the Amazon. Increased use of new export corridors in the North is expected to offer relief to Brazil’s traditional, increasingly congested export routes in the South and Southeast.        "]
[2014,"February","Oils/fats-based aviation fuel:  Aircraft maker Boeing sees “green diesel” as a significant new source of sustainable aviation fuel. Green (or renewable) diesel is made from plant oils and animal fats in a process that uses hydrogen, thus differing from biodiesel, which is produced by a chemical reaction based on alcohol. Reportedly, the fuel can be blended directly with traditional jet fuel (in a ratio of up to 50 percent) and does not require modifications to aircraft engines. Boeing is seeking approval from regulators in the United States and elsewhere for aircrafts to fly on green diesel blends. Using such blends would allow the aviation industry to lower its carbon footprint and reduce the sector’s reliance on fossil fuels. Green diesel is said to be cost-competitive with traditional jet fuel – with current government subsidies – and is already being produced on a relatively large scale.   "]
[2014,"February","Jatropha yields:  A bio-energy crop development company expects to harvest more than 4.5 tons of jatropha per hectare in its field trials in Tamil Nadu, India. The result is based on two open-pollinated jatropha varieties selected over  three generations for their high level of uniformity and productivity. The company expects its high-yielding varieties to become available for commercial cultivation in 2014/15."]
[2014,"February","Omega-3 fatty acids:  UK scientists reported that they managed to genetically modify camelina, an oilcrop belonging to the brassica family, to produce two omega-3 fatty acids commonly found in marine oils (EPA and DHA). The fatty acids are vital for human metabolism and are believed to offer important nutritional and health benefits. Approval to test the modified oilcrop in field trials is currently being sought in the United Kingdom. Reportedly, cultivation on a commercial scale could commence within ten years, potentially contributing to the protection of wild fish stock at the global level. The modified crop is meant to be used as feed in fish farms, but could also be used as health supplement in human foods. Critics voiced concerns about potential hidden health risks and said that genetic engineering risked introducing unintended DNA mutations. Reportedly, to date no more than five GM field trials have been permitted in the U.K. and only two crops has ever been approved for commercial cultivation in the EU.               "]
[2014,"February","Weed resistance:  US scientists reported that resistance of weeds against glyphosate, a herbicide extensively used in commercial crop cultivation in the United States and elsewhere, is on the rise. This trend could seriously affect soybean farming, where the use of glyphosate-based herbicides and glyphosate-compatible seed materials is particularly widespread. In general terms, heavy reliance on a single herbicide and on corresponding, tailor-made, varieties is said to entail considerable risks, at least in the longer term. Therefore, new, more sustainable weed control strategies and integrated management approaches are said to be necessary for the future. "]
[2014,"March","ARGENTINA – supply policies:  According to official sources, the government has reached an agreement with private grain firms about the release of USD 2 billion worth of soybeans into the market during February, i.e. before the harvest of the new crop begins. During the last few months, soy farmers decided to hold back sales from last year’s harvest, using their crops as a hedge against inflation and currency instability – a conduct that increasingly affected local consumption and exports."]
[2014,"March","BRAZIL – soy moratorium:  Brazil’s Grupo de Trabalho da Soja, a private-public task force of soy stakeholders decided not to renew the 8 year-old moratorium on the trading and financing of soybeans grown on illegally cleared land in the Amazon region. The moratorium will be allowed to expire in December 2014 because the evolution of the country’s environmental legislation is said to have made the measure redundant. New instruments, notably a sustainability programme that will link domestic soybean production to the country’s new Forest Code and a Rural Environmental Registry are to replace the moratorium. Advanced tools will be put in place to define individual farms’ land use, separating production areas from environmental conservation areas. Reportedly, the new system will provide producers with the required legal security and buyers with appropriate guarantees."]
[2014,"March","BRAZIL – infrastructure projects:  The government has awarded  the rights to operate a 850-km long south-bound leg of highway BR-163 to a private local company. Connecting Mato Grosso to ports in the South, the highway plays a major role in the marketing of the country’s soybean crop. Reportedly, the contractor will be required to widen half of the concerned stretch by the fifth year of operation. By securing private sector resources for large infrastructure projects – at the road, port and storage level – the government is trying to enhance the country’s agricultural export potential (see also MPPU Oct. ’11 and June & Sep. ’13). Last year, concessions were also granted for a highway linking the farm-rich states of Goiás and Minas Gerais. However, contracts for upgrading road transport towards the coastal states of Espirito Santo and Pará still remain to be awarded. Also the expansion in the country’s rail network seems to be progressing at a slower pace than planned."]
[2014,"March","CANADA – logistic challenges:  Following a set of recommendations made by industry representatives, the federal government has taken first steps to overcome the logistic hurdles currently faced by producers in moving grains and oilseeds to the country’s ports. Immediate actions include improvements in reporting on the transportation system and the establishment of a forum for representatives across the industry to discuss improvements throughout the supply chain. These measures are meant to address (i) gaps identified in the frequency of reporting; (ii) insufficient reporting of movements beyond Canadian export ports; and (iii) limits to reporting on supply chain capacity, reliability and performance. The government has also taken a longer term focus by contributing public funds to a project of domestic pulses, oilseeds and grains industries to improve the efficiency and reliability of the country’s rail supply chain."]
[2014,"March","CHINA – agricultural and trade policy  –  Farm subsidies:  According to government officials, this year’s spending on agricultural subsidies for grains, including rapeseed, will be increased by 10 percent in a bid to improve food security and encourage farmers not to abandon their farms. Support will be provided in a more targeted way and subsidy payments will be based on actually planted area. The government also committed to continue implementing annual procurement and stockpiling programmes for rapeseed.   "]
[2014,"March","CHINA – agricultural and trade policy –  Global trading:  China’s state-owned grain trader and processor Cofco is expected to increase its international presence. Driven by the shortage of arable land in China, Cofco started investing in overseas mergers and acquisitions with a view to build a global supply chain. Reportedly, the company bought a controlling stake in global agricultural trading house Nidera in February and is now in talks with Noble Group. "]
[2014,"March","CHINA – agricultural and trade policy –  Domestic crushing:  Public grain reserves corporation Sinograin decided to set up an oilseed crushing and vegetable oil refining plant in the country’s central province of Hubei. Sinograin, which is also involved in grain and vegetable oil procurement and stockpiling in Hubei, is the second state-owned company after Cofco investing in oilseed processing in China’s leading rapeseed producing province. However, the bulk of the country’s oilseed crushing capacity remains in the coastal provinces, which process imported and domestically grown soybeans."]
[2014,"March","CHINA – agricultural and trade policy – Import controls:  After denying access to selected maize cargoes over concerns they could contain unapproved GM seeds, port officials in Guangdong – the country’s largest soybean and grain importing province – recently ordered to also examine soybean cargoes for potential contamination with GM maize.                  "]
[2014,"March","CHINA – vegetable oil-based aviation fuel:  China has approved commercial use of bio-aviation fuel, in line with its policy to diversify the nation’s fuel consumption and to reduce carbon emissions. The country’s civil aviation authority licensed state-owned oil refiner Sinopec to use aviation fuel made from materials such as rapeseed, cottonseed and palm oil, as well as used cooking oil. Reportedly, the measure makes China the fourth country in the world commercially using bio-jetfuel, after the United States, France and Finland. Currently, China is the world’s second largest aviation fuel consumer, and its demand is estimated to grow by 10 percent each year. According to observers, even if vast areas for growing oil-bearing plants as well as large amounts of waste oils seem to be available, high production costs are likely to prevent large-scale application of vegetable oil-based jetfuel for the time being. Industry sources reported that it costs two to three times more to produce bio-based jetfuel than conventional fuel. The collection of used cooking oil suitable for refining is said to be expensive, and it takes three tons of waste oil to generate one ton of bio-jetfuel."]
[2014,"March","EUROPEAN UNION – olive sector policies  –  Olive tree movement:  The EU banned the movement of specific plants out of the Lecce region in Italy to help prevent the spread within the Union of xylella fastidiosa, a fast expanding disease that devastated olive groves in that region. Additional measures –  including a massive tree cull in the disease zone – are not excluded."]
[2014,"March","EUROPEAN UNION – olive sector policies –  Olive oil labelling:  New EU-wide rules aimed at making the information on olive oil labels easier to read and understand will come into effect in December 2014. New labels will also feature information that enables consumers to ensure product freshness and that helps users to maintain the quality of their oil longer. "]
[2014,"March","EUROPEAN UNION – GM variety screening  – GM rapeseed:  Authorization granted in 2005 to import, process and use GM rapeseed variety GT73 (modified to be resistant to the herbicide glyphosate) in animal feed is up for renewal.  After the Council failed to reach a qualified majority on the issue, the European Commission is expected to renew the authorization."]
[2014,"March","EUROPEAN UNION – GM variety screening  –  GM soybean:  New GM soybean variety BPS-CV 127-9 (modified to be resistant to the herbicide imidazolinone) has been declared safe for import, processing and use as food and feed by the European Food Safety Authority. The file is now with the European Commission and Council for final approval or otherwise.    "]
[2014,"March","INDIA – edible oil sales:  Reportedly, the deadline for food operators to stop – in line with new food safety standards – the sale of edible oils in loose form has been extended by an additional year. The exemption aims at addressing the needs of poor people who cannot afford to buy packaged oils.     "]
[2014,"March","INDONESIA – biodiesel production:  According to industry sources, the domestic use of palm oil by the biodiesel sector could fall 40 percent short of the official 2014 target (see also MPPU Feb. ’14). Actual demand has been estimated at 2 million tons, against the  government’s target of 3.4 million tons. In addition to logistical and regulatory difficulties, the weak demand prospect is attributed to the recent surge in the price of palm oil. Reportedly, the government has agreed to review its method for setting domestic biodiesel prices so as to ensure that domestic production and marketing of biodiesel remain profitable. The industry requested that the export price of crude palm oil be used as a benchmark.     "]
[2014,"March","MALAYSIA – biodiesel policy:  The government confirmed that B5 blending with palm oil-based biodiesel (5% biodiesel and 95% petroleum-based diesel) will become mandatory nationwide in July 2014. The measure is expected to raise domestic demand for biodiesel from the current level of 200-300 thousand tons per year to 500 thousand tons (see also MPPU Feb. & Apr. ’13). Furthermore, discussions are underway with the country’s car manufacturers about the possibility to raise the blending to B7 by early 2015. According to observers, the expansion of domestic palm oil demand is likely to drive up palm oil prices, which could make biodiesel production less profitable. Therefore, strict government enforcement of the higher blending mandates will be necessary to reach the new biofuel consumption targets."]
[2014,"March","PAKISTAN – oilcrop development  – Oil palm:  The central government is considering to develop – with assistance from Malaysia’s Federal Land Development Authority – large-scale oil palm plantations in the coastal provinces Sindh and Balochistan. The plan aims at lowering Pakistan’s dependence on imported palm oil. Reportedly, climatic conditions in the 750 km-long coastal belt are suitable for oil palm and some 6000 hectares of land will be brought under cultivation in the near future. Over the past years, a series of federal and locally funded initiatives have been launched to promote oil palm cultivation in the region.     "]
[2014,"March","PAKISTAN – oilcrop development   – Sunflower seed:  The government of Punjab Province has renewed its efforts to promote local sunflower seed cultivation in a bid to help reduce the nation’s deficiency in edible oil supplies. The provincial programme envisages to bring an additional 70 thousand hectares of land under sunflower seed cultivation.   "]
[2014,"March","PHILIPPINES – coconut rehabilitation:  The government has allocated – for the current year – Pesos 2.8 billion (USD 62.9 million) for the rehabilitation of the country’s coconut industry following the damage caused by typhoon Yolanda in November 2013. Administered by the country’s Coconut Authority, the funds will be used for (i) the production of seedlings and replanting operations; (ii) intercropping activities; and (iii) cash-for-work programmes to benefit affected farmers in concerned regions. The rehabilitation programme will be implemented over three years, although restoring production to pre-typhoon levels is said to require up to ten years. Both uprooted and partially damaged palms will be replaced with improved varieties, and triangular planting patterns meant to protect trees from being toppled during typhoons are going to be introduced.        "]
[2014,"March","ZIMBABWE – vegetable oil import duty:  Reportedly, the government is considering to raise the country’s import duty on vegetable oils to 40 percent in a bid to protect and develop the domestic vegetable oil industry. Currently vegetable oils enter the country at zero duty. "]
[2014,"March","Soybean research:  Reportedly, Brazil’s agricultural research institute EMBRAPA has developed a new genetically-modified type of soybean that is resistant to drought. The new variety would mainly benefit farmers in Brazil’s southern states, where crops tend to suffer from dry weather. A number of field tests and biosafety studies need to be completed before the new variety can be commercialized. "]
[2014,"March","GM-free products  –  GM-free foods:  According to industry sources, in the United States, the demand for GMO-free food products is expanding. Keen to gain market share, a growing number of food manufacturers started to offer products free of GM material (see also MPPU Feb. ’14). However, several companies are reporting difficulties in securing large and reliable quantities of non-GM ingredients, notably for maize and soybeans, the production of which is GM-dominated. Sourcing non-GM ingredients is said to be costly and cumbersome – a situation that will only improve with the gradual expansion of non-GMO supply chains. Furthermore, no federal standards exist for the labeling of non-GMO products, which forces companies to rely on third-party verification programmes. As the adventitious presence of GM in products marketed as GMO-free cannot be excluded, food companies tend to use disclaimers warning consumers about possible traces of GM material."]
[2014,"March","GM-free products  –  GM-free soybean:  Reportedly, a German association of poultry producers decided to end its commitment to exclusively use non-GM soybean feedstock, citing difficulties to source such material as well as high risk of cross-contamination between GM and conventional soybean along the supply chain. These claims have been promptly refuted by suppliers of non-GM material, who informed that cultivation of non-GM soybeans had recently gained weight , particularly in Brazil. "]
[2014,"March","Groundnut aflatoxin control:  In India, exporters of groundnut and its derivatives will face more stringent food safety inspections. Reportedly, the European Union and Malaysia, two key destinations for Indian groundnut exports, require Indian consignments to be accompanied by special health certificates issued by the Export Inspection Council of India."]
[2014,"March","Sourcing of sustainable raw materials:  Singapore-based Wilmar International, one of the world’s largest palm oil processors, has requested all its suppliers to comply with its recently launched “no deforestation / no peat / no exploitation” policy (see MPPU Dec.’13). The company committed to (i) avoid buying or trading palm oil that is produced at the expense of high carbon stock forests or high conservation value areas, (ii) avoid sourcing palm oil produced on peatland, and (iii) zero tolerance on palm oil linked to forced and child labour. Reportedly, suppliers are expected to stop using burning practices to clear land for planting and replanting, to restore peatland where feasible, to respect land titles and resolve land ownership issues, to adopt minimum wage policies, and to stop using hazardous pesticides."]
[2014,"March","Sourcing of sustainable raw materials:  Europe’s chemical company BASF committed to purchasing all its palm oil and palm kernel oil from RSPO (Round Table on Sustainable Palm Oil)-certified sustainable sources by 2015. The raw materials will be sourced using either full segregation or the mass balance system of RSPO. Depending on their individual needs and policies, the company’s customers will be able to choose between the two certified supply chain models. Under the mass balance system, certified and uncertified sources may be mixed along the supply chain, whereas the segregation method guarantees full identity preservation throughout.         "]
[2014,"March","Sourcing of sustainable raw materials:  Belgian food manufacturer and retailer Delhaize Group committed to ensure that, by 2020, all of the palm oil sourced for its products is fully traceable and deforestation-free. The company’s policy also includes commitments to protect peatland, high carbon stock forests, and high conservation value areas. Furthermore, free, prior and informed consent of indigenous and local communities in the development of new plantations will be required?. In addition, the company will maintain its current commitment to use by 2015 only palm oil produced according to the guidelines of RSPO, thus sourcing all through one of the three RSPO-endorsed trading mechanisms – book & claim (or trade in GreenPalm certificates), mass balance and full segregation. Reportedly, after 2015, certificate trading will be dropped in favour of the other two systems.  "]
[2014,"March","Sustainable palm oil, soybean and derived products :  US food company Kellogg announced that it will require all its palm oil suppliers to trace palm oil to plantations that are (i) independently verified as legally compliant; (ii) adherent to the company's principles for protecting forests, peat lands, and local communities; and (iii) compliant with RSPO principles and criteria. Suppliers are expected to comply with the new requirement by end 2015, or be working to close any gaps identified in their operations."]
[2014,"March","Sourcing of sustainable raw materials:  Global cosmetics firm L’Oreal committed to only source sustainably produced raw materials by 2020. The company informed it was working on improving the traceability of its raw materials and ensuring that its products were made without links to any environmental or social harm, ensuring in particular that palm oil, soybean oil and wood-fire based products were sustainably sourced. Reportedly, the company is already sourcing palm oil through RSPO’s segregated method, while palm oil derivatives are purchased via RSPO’s book & claim system. Sourcing exclusively sustainable products will have to wait until a critical mass of certified materials becomes accessible in the market, the company informed."]
[2014,"March","Sourcing of sustainable raw materials:  Scandinavian dairy company Arla Foods announced its decision to purchase RTRS (Round Table on Responsible Soy) certificates to cover all of the soybean used in cow feed by its suppliers across Europe. The new policy is part of the company’s on-going commitment to support sustainable soybean production.     "]
[2014,"May","ARGENTINA – biodiesel policies - WTO dispute settlement:  Upon request by the Argentinean government, the WTO Dispute Settlement Body set up a panel to look into the EU’s anti-dumping measures against imports of biodiesel from Argentina (see also MPPU Jan.’14). Argentina, claiming to be among the most efficient biodiesel producers globally, ascribes the EU’s action to an over-dimensioned EU biodiesel industry and considers the policy to be inconsistent with WTO rules. The European Union informed that the measure was necessary to restore fair competition and ensure the necessary conditions to maintain and develop its green energy sector. Private sources in Argentina expect this year’s total biodiesel exports to plunge by 39% compared to last year (by 53%, if compared to 2012), mostly on account of lower shipments to the European Union."]
[2014,"May","ARGENTINA – biodiesel policies - Domestic consumption: According to industry sources in Argentina, at the prevailing government-set fuel prices, production of renewable diesel for the domestic market has become unprofitable. In March 2014, the government raised to Pesos 4 533 (USD 577) per metric tonne the price at which petrol companies can purchase biodiesel. At the same time, fuel prices at the pump continue to be regulated with a view to protecting consumers. Such policies are said to prevent blenders from purchasing the amounts required to meet the country’s mandatory blending target. The average biodiesel content in fuel sold in Argentina is currently estimated at less than 5% – well below the 10% mandate.   \n"]
[2014,"May","ARGENTINA – biodiesel policies - Taxation: Reportedly, the government of Argentina is considering to temporarily scale back taxes on biodiesel for domestic use in an attempt to support local sales – given the anticipated plunge in exports. The proposal currently envisages  a suspension of the 19% tax levied on biodiesel for transportation fuel and the 22% tax applied to biodiesel for power generation. The tax concession would be granted as long as the EU anti-dumping duties remain in effect."]
[2014,"May","AUSTRALIA / JAPAN – bilateral trade agreement:  Under a recently completed free trade agreement, Japan committed to gradually phase out its tariffs on rapeseed oil and other vegetable oils imported from Australia."]
[2014,"May","BRAZIL – promotion of non-GMO soybean:  Brazil’s federal agricultural research agency EMBRAPA will conduct a series of field days across Mato Grosso, the country’s leading soybean state, to promote the cultivation of conventional varieties of soybean. EMBRAPA’s project aims at developing competitive conventional soybean varieties so as to provide farmers with an alternative to only growing GMO material – considering that the latter can pose problems with herbicide resistant weeds. The field days will focus on variety selection, crop management, weed and disease control, and on how to avoid contamination with GMO soybeans. Mato Grosso is said to be the preferred state for conventional soybean growing as its crops can be exported via ports on the Amazon river, where the risk of cross-contamination with GMO material is considered to be lower. According to ABRANGE, the Brazilian Association of non-GMO Grain Producers, the niche market for traditional soybeans will keep growing in both Europe and Asia (see also MPPU June’13 & March’14).      "]
[2014,"May","BRAZIL – soy taxation:  The country’s soy industry skirted the threat of a new tax being imposed on the internal soy market. In March, legislators decided to drop a proposal to reintroduce a social tax known as PIS/Cofins that would have rearranged taxation along the commodity chain without affecting exports. The soy complex had been exempted from paying the tax only last October. Reportedly, the government was not in favour of burdening the farm sector with additional taxes."]
[2014,"May","CANADA – provincial biodiesel mandates: To remain competitive with surrounding provinces, Ontario has introduced mandatory B2 blending (2% biodiesel in transportation fuel and heating distillate oil) at provincial level, to be raised to B3 in 2016 and B4 in 2017. The new regulation also sets minimum GHG emission reduction requirements – initially at 30%, but raising gradually to 70%. In Canada’s four western provinces, local mandates at the B2 or B4 level are already in place. At federal level, Canada introduced mandatory B2 blending back in 2011, allowing oil companies to blend renewable diesel anywhere in the country, provided the national average reached 2%. Under Ontario’s new mandate, blending will take place within the province, potentially creating a market for locally grown soybeans: an estimated local biodiesel demand of 140 000 tonnes per year would open a market for 680 000 tonnes of soybeans to be used as biodiesel feedstock.        "]
[2014,"May","CANADA – transportation policies: The government has taken additional measures to address the transportation bottlenecks faced by oilseed and grain producers after a record 2013/14 harvest was followed by extreme weather conditions (see MPPU Mar.’14). The country’s two major rail companies have been ordered to collectively double their weekly grain/oilseed movements to 1 million tonnes. The companies were given four weeks to meet the target, with fines being imposed for every day of non-compliance. The order will remain in place until the end of the 2013/14 (September/August) marketing year. Targets may be set in subsequent seasons too, taking into account the size of the harvest.. Market observers reported that, during March, the pace of grain and oilseed shipments started to improve. However, railway officials don’t expect the transportation backlog to be absorbed before 2015. They also expressed concerns about the government’s decision to regulate national rail transportation, warning that greater rigidity in the supply chain could result in costly inefficiencies, undermine innovation and hamper collaboration between members of the supply chain.               "]
[2014,"May","CANADA / REP. OF KOREA – bilateral trade agreement:  Under a recently signed free trade agreement, Canadian agricultural products will be granted preferential access to the Rep. of Korea. Oilseeds, in particular rapeseed, soybean and their sub-products, are set to enter the Korean market tariff-free. According to Canadian industry sources, exports of rapeseed and rapeseed product to the Rep. of Korea could double as a result of the agreement."]
[2014,"May","CHINA – agricultural and trade policy:  State-owned leading grain trader and processor Cofco has acquired a majority stake in the agribusiness unit of Noble Group, a global agricultural trading firm that owns extensive port and logistic facilities throughout the Americas, Asia and Eastern Europe. The move falls under China’s new strategy to raise the country’s presence in international grain markets (see also MPPU March’14). Adding an international sourcing and trading platform to Cofco’s downstream processing and distribution capabilities will facilitate the creation of fully integrated value chains, which will help China to address domestic production constraints and reduce its dependence on foreign suppliers and third-party traders. As China starts channeling more of its purchase orders through its own companies, market experts anticipate a steady increase in oilseed and grain imports from throughout South America – possibly at the expense of the United States. The latest acquisitions should also prove advantageous for the country’s trade in sugar, coffee and cocoa."]
[2014,"May","CHINA – public procurement & state reserves - Soybeans:  Starting in May 2014, state agencies are expected to get rid of their reserves of soybeans after the government decided to abandon its procurement and stockholding scheme in favour of direct subsidies to soybean farmers (see MPPU Feb.’14). Private sources estimate public reserves from the 2013/14 crop at 3 million tonnes; another 3-4 million tonnes from earlier campaigns are believed to be in stock. "]
[2014,"May","CHINA – public procurement & state reserves - Rapeseed:  As opposed to soybeans, public procurement of rapeseed and stockpiling of rapeseed oil will not be discontinued. As the policy of protecting local farmers to encourage domestic production remains in place, state agencies are expected to start releasing rape oil from public reserves soon, so as to make room for the new harvest. Up to 5 million tonnes may be sold. Market observers anticipate releases of 300 000 tonnes per week. Sale/purchase prices and volumes have yet to be announced.\n"]
[2014,"May","CHINA – rapeseed meal importation: The government agreed to resume importations of rapeseed meal from Canada, which had been banned in January 2013 (see MPPU Feb.’14). For the time being, the import permission was given to a single company – in line with China’s new registration process, which requires approval of each individual supplier."]
[2014,"May","EUROPEAN UNION / UKRAINE – preferential trade:  Anticipating the comprehensive free trade agreement between the European Union and Ukraine, which is expected to come into force later this year, the European Union offered to waive import duties on selected Ukrainian commodities – including sunflower oil – starting on April 23rd. The EU’s ad-valorem tariffs for crude and refined sunflower oil stand at, respectively, 2.9% and 6.1%.    "]
[2014,"May","INDIA – trade policy -  Saturated fatty acid imports:  India notified the WTO that it initiated a safeguard investigation on imports of saturated fatty alcohols, which are claimed to have caused severe injury to India’s refining industry.. Allegedly, profitability of domestic refining operations deteriorated sharply as a result of higher imports of palm oil-based fatty acids from Indonesia, where export taxes on refined palm oil products have been lowered significantly in 2011. Following its notification to WTO, the Indian government may take safeguard actions, such as temporary import restrictions."]
[2014,"May","INDIA – trade policy - Edible oil exports:  Based on estimates of an all-time high 2013/14 oilseed harvest, the government is considering to lower the minimum export price for packaged and branded edible oil from USD 1 400 per tonne to USD 1 100. Shipments in branded consumer packs were liberalized last year – subject to minimum export prices – to allow domestic refiners cater to overseas demand (see MPPU Feb.& Nov.’13). India’s ban on bulk exports of vegetable oil remains in place. \n"]
[2014,"May","INDONESIA – variable palm oil export tax:  Following the recent swing in international palm oil prices – i.e. marked increases in February and March 2014, followed by drops in April – Indonesia initially raised its variable export tax on crude palm oil to 13.5% for April (compared to the 10% rate in place since February) and subsequently lowered it to 12%.    "]
[2014,"May","MALAYSIA – variable palm oil export tax:  Following the recent strengthening in international palm oil values, Malaysia raised the export tax on crude palm oil to 5.5% for April and May. The rate had been kept unchanged at 5% since December 2013."]
[2014,"May","MALAYSIA / TURKEY – preferential trade:  Under a newly signed free trade agreement, Malaysian exports of palm oil and animal fats to Turkey will enjoy preferential treatment. Reportedly, for palm oil and derived products, Turkey will apply a one-off duty reduction of 30% from the current MFN rate. The preferential duty will benefit recently established joint ventures between Malaysian and Turkish firms operating in the Turkish oleochemical and bakery sectors. Relying on raw material supplies from Malaysia, these companies plan to supply the Turkish market and Middle Eastern and North African markets.     "]
[2014,"May","MEXICO – vegetable oil import tariff:  Reportedly, in response to complaints by domestic crushers and refiners, the government decided to  reduce rather than eliminate, as originally planned, the import tariff on vegetable oil . Government officials noted that Mexico’s domestic oilseed production had grown less than anticipated and remains far from meeting domestic demand for oils and meals. Hence, import tariffs will remain in place to create favorable conditions for Mexican oilseed producers and processors.  "]
[2014,"May","PAKISTAN – adulterated vegetable oil: State agencies discovered noxious vegetable oil on sale in various domestic markets. Reportedly, some traders are conducting illegal imports of used cooking oil – falsely declaring the same as fatty acids or acid oils – for subsequent marketing as cooking oil or vegetable ghee. To prevent such practices, the government is considering to ban imports of cooking oils and fatty acids in drums, and to restrict bulk imports to industrial users, i.e. manufacturers of soaps and oleochemicals.   "]
[2014,"May","UNITED STATES – trans fat policy: The American Soybean Association (ASA) submitted comments on the US-Food and Drug Administration proposal to further reduce trans fatty acid consumption by rescinding the ‘generally regarded as safe’ (GRAS) status for partially hydrogenated oils (PHOs), including partially hydrogenated soybean oil (see MPPU Dec. ’13). ASA claims that the removal of the GRAS status for PHOs would, in the immediate term, result in a substantial substitution of imported, higher saturated, fat oil for locally produced PHOs – harming US soy farmers and causing an unintentional increase in domestic consumption of saturated fat. ASA also pointed out that, thanks to major efforts by the food industry, a dramatic reduction in trans fat consumption (in terms of daily per capita intake) has already been achieved over the last decade. Moreover, the country’s soybean industry has turned its focus to developing high-oleic soybean varieties, which, in the medium to longer term may permit to replace PHOs in many food applications, allowing to reduce trans fat intake further (see also MPPU Feb.’11, Dec.’12 & Apr./June/Aug.’13). Finally, ASA recommended that alternative policies be considered to reduce trans fat consumption, notably establishing strict limits for the amount of trans fat in food products – a practice currently in place in Canada and Denmark."]
[2014,"May","UNITED STATES – biodiesel policies - Federal support:  The government announced that nearly USD 60 million will be made available to 195 producers to support the production of ‘advanced biofuel’. The funding is provided through USDA’s “Advanced Biofuel Payment Program”  established under the 2008- Farm Bill and re-authorized in the 2014-Farm Bill. Payment are made to eligible producers based on the amount of biofuel produced from renewable biomass other than maize kernel starch, notably vegetable oil, animal fat, crop residue and animal, food and yard waste. Support is primarily directed to research, investment and infrastructure projects.. Since the programme’s inception, payments totalled USD 279 million. The bulk of the subsidies was provided to biodiesel producers.\n"]
[2014,"May","UNITED STATES – biodiesel policies -  State incentives:  Reportedly, Iowa state, the country’s leading producer of biodiesel, is planning to introduce a biodiesel producer incentive to remain competitive with surrounding states and to shelter the state’s industry from the impact of uncertainty over the federal renewable fuel standard and other federal measures. Under the new legislation, the first 25 million gallons (84 000 metric tonnes) of biodiesel produced in any single plant would be eligible for a 2-cent-per-gallon refundable tax credit. Reportedly, policies in place in other states include an exemption from sales tax in Illinois, a production incentive in Missouri, and a B5 mandatory blending requirement in Minnesota.\n"]
[2014,"May","UNITED STATES – export promotion: New funding has been made available through the 2014 Farm Bill to assist agricultural commodity organizations in their efforts to expand commercial exports. Oilseed associations that have been awarded funding under USDA’s   “Market Access Program” and “Foreign Market Development Program” are: the American Soybean Association, the American Peanut Council, and the National Sunflower Association."]
[2014,"May","Waste recycling -  Palm oil:  Reportedly, in Malaysia, two foreign joint ventures are set to build biogas plants using palm oil mill effluent (POME) as feedstock. Generated during the palm oil milling process, POME requires effective treatment before discharge into watercourses, due to its highly polluting properties. Of the two plants, one will use POME to produce power for supply to the electricity grid, while the other will generate power for use within a new palm oil mill. Analogous investment projects have been reported from Thailand.\n"]
[2014,"May","Waste recycling - Olive oil:  A European research team is exploring possibilities to recycle olive pomace, the residue left when olives are crushed for edible oil. Work is focusing on the potential of the olive pomace milling residue to be used as feedstock for gasification plants. Such (small scale) plants can be set up next to olive plantations and olive presses, to cover the energy requirements of these enterprises, while also relieving processors from the cost of disposing their residues. Other uses of pomace include the transformation into compost or fertilizer and the extraction of polyphenols (for use in foods and cosmetic products)."]
[2014,"May","Small-scale biodiesel production:  Reportedly, a Fijian island commenced producing coconut oil-based biodiesel for local consumption. At 240 000 liters per year, production is tailored to the island’s own capacity and needs. Making use of the island’s abundance of coconut trees and apply their copra making skills, villagers produce enough energy to light their homes and power basic appliances, while saving on fossil fuel usage and making their community energy-independent. Reportedly, locally produced biodiesel is sold at 13% less than regular diesel. The scheme is part of the Fiji Renewable Energy Power Project, which enjoys multilateral funding and technical assistance."]
[2014,"May","Biodiesel production technology:  Reportedly, European researchers are developing low-energy water-free methods to produce biodiesel from either virgin vegetable oil or waste cooking oils/animal fats and other fatty wastes – a technology that could offer significant environmental and economic benefits. Traditional methods use high volumes of water to remove impurities, producing large amounts of polluted wastewater. Reportedly, the proposed alternative technology relies on catalysts to pre-treat biodiesel, using environment-friendly techniques for the removal of impurities. "]
[2014,"May","Coconut rehabilitation in the Philippines:  Global agribusiness and trading firm Cargill will support the rehabilitation of 600 hectares of coconut farmland in Eastern Visayas, following the damage caused by typhoon Yolanda last year. The initiative aims at stabilizing the supply and the price of copra in the Philippines, where the company produces coconut oil/meal for both domestic and export markets. Country-wide, the typhoon destroyed an estimated 15 million trees, causing a 13.5% drop in the country’s copra supply. Considering that new trees take six to seven years to bear fruit, the main challenge is to accelerate the planting of new palms. Cargill committed to establish a nursery to grow seedlings as well as two set up demonstration farms for cash crop production, so as to help coconut farmers to sustain themselves while waiting for new palms to become productive."]
[2014,"May","Brazilian infrastructure improvements - Public efforts:  Interventions reducing the time needed to ship grains and oilseeds out of Mato Grosso continue to receive primary attention. Mato Grosso is the country’s leading growth area for soybeans and currently accounts for close to one third of total national output. After awarding rights to upgrade the highway from Mato Grosso to the South (see MPPU March’14), concessions have been provided to pave the principal route North – connecting Mato Grosso to the port of Santarem on the Amazon river. Once completed, the project is expected to cut soybean transportation costs from Mato Grosso to Santarem by no less than 35% compared to those involved in shipping soybeans to ports in South Brazil. Additional savings are expected once barging facilities along the Tapajós river, a tributary of the Amazon, will become available. While southern ports are between 1 950 and 2 100 km away from central Mato Grosso, the distance to Santarem and to the barging facilities amounts to, respectively, 1 400 and 1 100 km. Shipping out of the Amazon region will also reduce the overall time required to deliver soybeans to China, Brazil’s key export market.\n"]
[2014,"May","Brazilian infrastructure improvements - Private investments:  After ADM Co. (see MPPU Feb.’14), also international grain trading firm Bunge Ltd. announced it will start shipping grains through Brazil’s northern state Pará. The company inaugurated two new terminals, one near Belém, in the estuary of the Amazon, and one further upstream, on the Tapajós river. In 2014, the new terminals are expected to handle 2.5 million tonnes, mostly soybean. Expansion to full capacity (4 million tonnes) is scheduled for 2015. The new facilities will be connected to Mato Grosso via the newly paved stretch of highway BR-163 and through a river barge system. Increased use of the new export corridor in the North is expected to relieve the burden on highly congested southbound highways. Private sources estimate that, by 2022, 60% of Mato Grosso’s soybeans will be exported out of northern ports and only 40% via ports in the South."]
[2014,"May","Futures trading:  Bursa Malaysia informed that it is ready to launch a futures contract for refined, bleached and deodorized palm olein, thus offering a possibility to hedge refining margins in palm oil. Trade officials pointed out that processing margins have become increasingly volatile as markets turned more competitive."]
[2014,"May","Sustainable soy production:  Scandinavian meat company HKScan has joined the RTRS (Round Table on Responsible Soy), thus committing to environmentally sustainable and socially responsible soy production, trade and processing. The company will ensure that, by the end of 2018, all soy/soymeal used in its meat value chain meets the requirements of RTRS."]
[2014,"May","Sustainable palm oil production/certification – general developments - Malaysian NGO initiative:  In Malaysia, a coalition of NGOs – the Malaysian Palm Oil NGO Coalition – has called on government-linked companies and banks investing in the palm oil sector to help developing a sustainable industry. The coalition, which supports the international RSPO (Roundtable on Sustainable Palm Oil), recommended that banks ask for evidence of high social and environmental standards when assessing new proposals from oil palm growers.\n"]
[2014,"May","Sustainable palm oil production/certification – general developments - Official Malaysian certification: Government officials reported about challenges faced in getting the Malaysian Sustainable Palm Oil (MSPO) standard recognized by international buyers. Launched last year as a voluntary national standard complying fully with national laws and regulations (see MPPU Apr. & Sep.’13), to date only a limited number of producers seem to have applied for MSPO certification. MSPO competes with the internationally recognized RSPO certification, which is used by most of Malaysia’s major oil palm plantation companies. Officials from the Malaysian Palm Oil Board (the state agency that has developed the new national standard), recommended that the possibility of making the MSPO standard mandatory for palm oil producers nation-wide be explored. Reportedly, smallholder producers would be considered for special assistance to enable them to be certified. Meanwhile, the association of plantation owners in Sarawak, the country’s second largest oil palm state in terms of area cultivated, said that it was fully committed towards compliance and certification under MSOP. \n"]
[2014,"May","Sustainable palm oil production/certification – general developments  - Certified palm oil in Indonesia:  Recently, Indonesia replaced Malaysia as the world’s leading supplier of RSPO-certified palm oil. Currently, almost half of the entire RSPO-certified palm oil comes from Indonesia. In addition to promoting exports, efforts are underway to encourage absorption of certified product by the domestic market – an outlet with high potential, given that Indonesia is the world’s second largest user of palm oil after India. In order to raise awareness of certified palm oil among Indonesian consumers, RSPO recently allowed several producers to use its logo. On a separate note, a study is underway to compare the RSPO standard with the government-initiated ISPO standard (Indonesian Sustainable Palm Oil). Given that numerous firms have applied to be appraised under both schemes, the possibility of conducting joined audits will be evaluated with a view to help reducing the time and cost of certification.   \n"]
[2014,"May","Sustainable palm oil production/certification – general developments - Global trade in RSPO-certified palm oil:   RSPO expects sales of certified sustainable palm oil (CSPO) to climb further in 2014 due to larger purchase commitments from main buyers (such as Unilever, Nestle and Procter & Gamble). Reportedly, growth will also be driven by a new EU food labeling regulation, which will require food manufacturers to specify the type of vegetable oils contained in their products. In general, foodstuff containing sustainably produced palm oil are expected to gain a competitive edge over similar products made with uncertified oil. Despite the projected rise in global sales, the uptake of CSPO remains limited compared to total quantities available in the market: for 2013, global supplies were reported at 8.7 million tonnes, whereas actual sales (through the three RSPO-authorized mechanisms) totaled only 4.5 million tonnes – implying that over 4 million tonnes of certified produce did not find a buyer and had to be sold as conventional oil with no premium going to growers (see also MPPU June’13). Moreover, only about one third of total CSPO trade used channels that allow product traceability, meaning that the bulk continues to be sold through simple (less demanding and costly) ‘book & claim’ mechanisms, which bypass the physical supply chain and thus do not include product segregation and traceability (see also MPPU Dec.’13).    \n"]
[2014,"May","Sustainable palm oil production/certification – company news: Concerning the effective contribution of product certification to the adoption of sustainable production practices in the field, a growing number of palm oil buyers and major consumer brands seems to realize that the certification practices currently in place have remained relatively ineffective. Yielding to continued pressure by civil society groups, a number of companies accepted to increase their efforts, in particular by making voluntary pledges towards zero-deforestation and full product traceability, possibly going beyond the requirements set by RSPO. The latest initiatives in this area include:  Mars:  Global snack food producer Mars unveiled a new set of guidelines aimed at ensuring that its palm oil supply chain is fully traceable and sustainable by the end of 2015. Reportedly, Mars recognized that its current practice of sourcing all its palm oil under the RSPO-certified ‘mass balance’ system (in place since 2010) contributes only modestly to the expansion of sustainable production practices. The company therefore announced a no-deforestation/no-peatland/no-burning pledge for its sourcing of palm oil, adding that plantation developments on land owned by local communities needed the latter’s free, prior and informed consent. Mars will require all its suppliers to have in place sustainable and traceable sourcing plans by the end of this year. Not-for-profit organization The Forest Trust accepted to help the company set up its framework for sustainable sourcing.     "]
[2014,"May","Sustainable palm oil production/certification – company news: Concerning the effective contribution of product certification to the adoption of sustainable production practices in the field, a growing number of palm oil buyers and major consumer brands seems to realize that the certification practices currently in place have remained relatively ineffective. Yielding to continued pressure by civil society groups, a number of companies accepted to increase their efforts, in particular by making voluntary pledges towards zero-deforestation and full product traceability, possibly going beyond the requirements set by RSPO. The latest initiatives in this area include:  Procter & Gamble:  The global consumer goods company announced new steps under its global sustainability policy, committing to full traceability of its palm/palmkernel oil by end 2015 and to zero-deforestation in its palm oil supply chain by 2020. Already using only RSPO-certified, P&G’s new targets are meant to enforce reliable, effective and lasting sustainable practices throughout its suppliers. Reportedly, special attention will be given to the needs of small producers. Advocacy groups remained critical of P&G’s new initiative, pointing out that no-deforestation commitments needed to be implemented with immediate effect.\n"]
[2014,"May","Sustainable palm oil production/certification – company news: Concerning the effective contribution of product certification to the adoption of sustainable production practices in the field, a growing number of palm oil buyers and major consumer brands seems to realize that the certification practices currently in place have remained relatively ineffective. Yielding to continued pressure by civil society groups, a number of companies accepted to increase their efforts, in particular by making voluntary pledges towards zero-deforestation and full product traceability, possibly going beyond the requirements set by RSPO. The latest initiatives in this area include:  Cargill:  Going beyond earlier commitments, global agribusiness and trading firm Cargill committed to a new responsible palm oil policy. Reportedly, the company responded to pressure from customers (including Nestle, Unilever, General Mills, Kellogg, Hershey, Mars and Procter & Gamble), who promised to embrace more stringent sourcing policies. Cargill pledged to adopt responsible standards for all of its palm oil trade – a tough call, considering that the company sources 97% of its palm oil from plantations operated by third parties. Civil society group Rainforest Action Network pointed out that relying exclusively on RSPO standards and control mechanisms could prove insufficient and offered to help Cargill design and implement a binding, time-bound policy that included verifiable targets.\n\n"]
[2014,"May","Sustainable palm oil production/certification – company news: Concerning the effective contribution of product certification to the adoption of sustainable production practices in the field, a growing number of palm oil buyers and major consumer brands seems to realize that the certification practices currently in place have remained relatively ineffective. Yielding to continued pressure by civil society groups, a number of companies accepted to increase their efforts, in particular by making voluntary pledges towards zero-deforestation and full product traceability, possibly going beyond the requirements set by RSPO. The latest initiatives in this area include: Colgate-Palmolive:  The global health care and household company decided to add deforestation-free sourcing of raw materials to its sustainability commitments. Under its new policy, the company pledged to trace all palm oil supplies back to plantation by 2015. The company also committed to require zero net deforestation by 2020. In addition to palm oil, responsible sourcing will also be introduced for soybean, soyoil, beef tallow and other products.\n"]
[2014,"May","Sustainable palm oil production/certification – company news: Concerning the effective contribution of product certification to the adoption of sustainable production practices in the field, a growing number of palm oil buyers and major consumer brands seems to realize that the certification practices currently in place have remained relatively ineffective. Yielding to continued pressure by civil society groups, a number of companies accepted to increase their efforts, in particular by making voluntary pledges towards zero-deforestation and full product traceability, possibly going beyond the requirements set by RSPO. The latest initiatives in this area include:  Safeway:  The US food & drugs retail company committed to using exclusively certified sustainable palm oil in its own brands. Reportedly, the company will require verification from suppliers that all of their palm oil and derived products are free of deforestation, peatland conversion, illegally held land, and human rights violations.\n"]
[2014,"May","Sustainable palm oil production/certification – company news: Concerning the effective contribution of product certification to the adoption of sustainable production practices in the field, a growing number of palm oil buyers and major consumer brands seems to realize that the certification practices currently in place have remained relatively ineffective. Yielding to continued pressure by civil society groups, a number of companies accepted to increase their efforts, in particular by making voluntary pledges towards zero-deforestation and full product traceability, possibly going beyond the requirements set by RSPO. The latest initiatives in this area include: Orkla:  The Scandinavian food and consumer goods company committed to implement, by 2017, a zero forest/peatland conversion policy for the palm oil it sources. Its policy includes provisions for all palm oil to be fully traceable to plantation level and for the protection of human and workers’ rights. In addition to being an important supplier in the Nordic and Baltic regions, Orkla also owns an important food company in India. In this regard, Greenpeace highlighted the importance of introducing responsible sourcing practices also in developing countries, in particular in Asia, given their weight in global palm oil consumption. In 2013, India was the world’s leading importer and consumer of palm oil. Other important buyers in Asia include China, Pakistan and the Islamic Republic of Iran.\n \n"]
[2014,"May","Sustainable palm oil production/certification – company news: Concerning the effective contribution of product certification to the adoption of sustainable production practices in the field, a growing number of palm oil buyers and major consumer brands seems to realize that the certification practices currently in place have remained relatively ineffective. Yielding to continued pressure by civil society groups, a number of companies accepted to increase their efforts, in particular by making voluntary pledges towards zero-deforestation and full product traceability, possibly going beyond the requirements set by RSPO. The latest initiatives in this area include:  PepsiCo: The global beverage and food company committed to take steps to stop illegal land seizures by its suppliers of raw materials, notably sugar, soybean and palm oil. Reportedly, the company will require supplying companies to respect community land rights,  adhering to the principle of free, prior and informed consent. PepsiCo agreed to disclose, for the first time, its top sourcing countries and suppliers for palm oil, soy and sugar and pledged to engage with governments and international bodies to support responsible land right practices.\n"]
[2014,"May","Sustainable palm oil production/certification – company news: Concerning the effective contribution of product certification to the adoption of sustainable production practices in the field, a growing number of palm oil buyers and major consumer brands seems to realize that the certification practices currently in place have remained relatively ineffective. Yielding to continued pressure by civil society groups, a number of companies accepted to increase their efforts, in particular by making voluntary pledges towards zero-deforestation and full product traceability, possibly going beyond the requirements set by RSPO. The latest initiatives in this area include:  Wilmar International:  Reportedly, the no-deforestation/no-peatland/no-exploitation policy recently adopted by one of the world’s leading buyers and traders of palm oil (see  MPPU Dec.’13 & March ‘14) has sparked criticism among producers in the Malaysian state of Sarawak, where Wilmar accounts for about half of total palm oil purchases. Reportedly, the local association of plantation owners (SOPPOA) defined the company’s policy as discriminatory and detrimental to the state’s palm oil industry. Wilmar clarified that its policy will not affect the purchases from smallholders and indigenous communities and from suppliers who developed carbon-rich peatland prior to December 2013. To date, in Sarawak, peatland conversion by oil palm estates has involved some 400 000 hectares (about one quarter of the state’s total peatland area), according to unofficial estimates. Wilmar committed to help local smallholders develop their native customary land responsibly, irrespective of whether it includes peatland or not – as the company recognizes that indigenous communities depend on this land for their livelihoods. On the other hand, all new plantation development by commercial companies would potentially be in contrast to Wilmar’s new purchasing policy. In this regard, the company informed that it will maintain constructive dialogue with all stakeholders and support its suppliers in shifting their operations away from \nunsustainable practices, thus focusing its attention on their long-term commitment to proactively address the problems.\n \n"]
[2014,"May","Edible oil marketing - Irregularities in marketing:  In India, cases of edible oil adulteration and other irregularities have been reported in the states of Uttar Pradesh and Kerala. In Uttar Pradesh, oil companies and shopkeepers were found violating packaging \nnorms. State officials discovered cases of improper labeling of ingredients, misleading information on nutritional value, missing manufacturing and expiry dates, missing producer’s address, and sales in re-used tins. Traders were also found to mix edible oils with lower-priced rice bran oil and non-food grade palm olein. In Kerala, where coconut oil is the traditional cooking oil, steep rises in the price of pure coconut oil have triggered adulteration with palm kernel oil or used edible oils, potentially implying serious health risks. Trade sources, estimate almost 70% of the coconut oil sold through the unbranded retail network to be impure. In both states, food safety authorities ordered regular and stringent controls, including laboratory testing of samples.\n"]
[2014,"May","Edible oil marketing - Testing for adulteration:  A group of Swiss researchers is reported to be working on techniques that would allow simple and effective detection of adulteration in olive oil. Fraudulent practices are believed to be common in olive oil markets (see also MPPU Nov.’13). The new techniques consists in adding a miniscule amount of synthetic DNA to products to tag the oil, recording its origin and other key information. For testing, the markers would be extracted and analyzed, and, when the DNA concentration does not match with the original value, other oil must have been added to the product. Equivalent to a label that cannot be removed, the method is said to be safe, simple and extremely cost-effective. Although developed specifically for olive oil, the technology could prove particularly valuable if applicable to any edible oil.\n"]
[2014,"May","Edible oil marketing - Olive oil standards:  In the United States, California’s olive oil producers will establish an olive oil commission to help set industry standards and combat fraud. The initiative reflects concerns about the lack of binding national and international standards for extra virgin olive oil. Producers reported that, presently, a wide range of olive oil qualities is being marketed as “extra virgin”, without adequate quality guarantees (see also MPPU Dec.’10, May’11 & Nov.’13).\n"]
[2014,"May","Edible oil marketing - Flax/linseed health attributes:  In Canada, official approval has been granted for a health claim linking ground flax/linseed to lower cholesterol levels, a risk factor for heart diseases. Rich in omega-3 fatty acids as well as high quality protein, soluble fiber and phenolic compounds, flaxseed has gained importance as a functional food ingredient. According to the Flax Council of Canada, mention of the health claim on food labels will stimulate the development and demand for food and beverage products incorporating the ingredient. Canada is the world’s top producer of flax/linseed, followed by China and the Russian Federation. In addition to food purposes, flaxseed is also used in industrial, fiber and feed applications."]
[2014,"May","Edible oil marketing - Trans fatty acids:  Reportedly, the European association of margarine producers updated its code of practice on health-damaging trans fatty acids (TFA) in order to limit their levels in manufactured foods containing margarines and fat spreads. Under the revised code, members of the association commit to encourage their customers (i.e. food producers that use margarines as ingredients) to only buy margarines with no more than 2% TFA on a fat basis. As to retail blends and blended spreads that are made by mixing vegetable oils and butter, these should contain no more than 5% TFA on a fat basis. Furthermore, food manufacturers are invited to ensure that the combined total of trans fatty acids and saturated fatty acids does not rise as a result of product/recipe reformulations. The association also supports mandatory labeling of both trans fat and saturated fat from all sources in all retail food products, so as to ensure that consumers are informed of the nutritional content of products they buy. Reportedly, the EU margarine industry has been engaged in reformulation processes for the last 15 years, and the European Food Safety Authority recently recognized that TFA intake in the EU has decreased thanks to these efforts. (On other national/international TFA standards and policies see also MPPU Jan.’10, Sep.’11, June&Dec.’13)"]
[2014,"June","ARGENTINA – biodiesel policy:  In an effort to support biodiesel producers, the government decided to temporarily suspended – until 31st December 2015 – a tax applying to domestic biodiesel consumption (amounting to 19% and 22% for fuel used for, respectively, transportation purposes and power generation), as well as to lower Argentina’s export tax for biodiesel from 21% to 11% (see also MPPU Dec.’13 and May’14). Last year, domestic biodiesel production dropped sharply as a result of the anti-dumping tariffs introduced by the EU – the key export destination for biodiesel produced in the country. Thanks to the new tax concessions, industry officials expect this year’s production and shipments to almost recover to the level of 2012. "]
[2014,"June","AUSTRALIA – biofuel policy:  The government announced plans to cut federal subsidies and end tax concessions granted to the country’s ethanol and biodiesel industries. For biodiesel, grants made since 2003 under the ‘Cleaner Fuels Grant Scheme’ would be reduced to zero over the next four years. Furthermore, biodiesel would lose the excise free status that it has enjoyed since 2011, and which was meant to remain in place for ten years. Beginning in July 2016, the excise rate for biodiesel would be raised annually for five years until it reaches 50% of the ‘energy content equivalent tax rate’ (the sliding scale against which fuels are excised based on their energy content). Industry representatives strongly criticized the government’s unexpected policy shift."]
[2014,"June","BRAZIL – agricultural policy:  The government announced its package of support measures for agriculture and livestock in 2014/15. Total programme outlays for commercial and family farming are set to increase to Reais 180.2 billion (USD 80.7 billion), up 15% from last season’s level,  The distribution of funds across the various programmes will remain largely unchanged. Interest rates charged under the main loan schemes will rise compared to last season (for production and marketing loans, the rate will rise from 5.5% to 6.5%). On the other hand, individual farmers will enjoy higher borrowing limits (generally 10% above last season’s level). As to the government’s farm insurance programme, funding will stay at last year’s level, and mandatory subscription will only be introduced in 2015/16. The minimum price guarantees for individual crops have not been announced yet. The prices for soybeans were last revised in 2009/10.        "]
[2014,"June","BRAZIL – biodiesel policy:  The government has proposed to raise the amount of biodiesel that must be blended into diesel to 6% in July, and further to 7% in November – compared to the 5% rate that is in place since 2010 (see also MPPU Dec.’13). The measure, which still requires approval by Congress, aims at replacing more diesel fuel imports with domestically produced biodiesel and at additional reductions in GHG emissions. The move should allow full use of the country’s biodiesel capacity. Reportedly it will also benefit family farmers, considering that small-scale producers of oilcrops and of other biodiesel feedstock will benefit from production incentives. Based on the new blending targets, industry representatives have raised their 2014/15 forecasts for domestic crush and soyoil consumption, while soyoil shipments could fare below (and soymeal exports above) earlier expectations. The impact on consumer price inflation – via temporary rises in soybean prices – was estimated to be negligible.  "]
[2014,"June","CANADA – internal trade:  Quebec Province was invited by a dispute resolution panel (set up under the pan-Canadian ‘Agreement on Internal Trade’) to lift restrictions on the production, sale and marketing of vegetable oil-based dairy substitutes such as certain margarines, dessert toppings and non-dairy coffee creamers. The panel had been convened upon request of Saskatchewan and three other oilseed-growing western provinces, which claimed that the restrictions impeded domestic trade in edible oils and were discriminatory in favour of Quebec’s dairy sector. The government of Quebec has appealed the ruling.          "]
[2014,"June","CHINA – soybean policies - State reserves:  This year’s auctions of state reserves have started in May, one month after the end of the 2013/14 soybean procurement campaign, which reportedly added 3 million tons to public stockpiles. Total government inventories, comprising crops from the last three seasons, are estimated at 6.8 million tons. Reportedly, a total of 3 million tons will be put on sale this year, mostly from the country’s 2011 crop. By comparison, last year’s auctions amounted to around 2 million tons. Since the binning of May 2014, 1.08 million tons of soybeans have been sold, with prices averaging Yuan 4 212 (USD 678) per tonne. The strong pace of sales is said to reflect tight domestic inventories of non-GMO/food-grade soybeans. Reportedly, the auction’s impact on soybean imports should be small, as sales are primarily directed to inland crushers (that do not use imported material) and food manufacturers (that only purchase domestically grown non-GMO material).      "]
[2014,"June","CHINA – soybean policies - Production support:  The government confirmed that, starting with the 2014/15 crop, its 6 year-old soybean procurement/stockpiling scheme will be replaced by direct subsidy payments (see MPPU Feb.’14). From this year, to protect farm incomes and stimulate production, soybean farmers in Northeastern China will receive subsidies whenever the market price falls below the target of Yuan 4 800 per tonne (USD 773). For comparison, in the last two years, the government bought the farmers’ crop at a fixed price of Yuan 4 600 per tonne. Under the new system, instead of selling to the government, farmers will sell their beans in the open market. Details of the new scheme have been announced at a time when plantings are close to completion, but, reportedly, farmers have indicated that they may expand plantings next year thanks to the new subsidy."]
[2014,"June","CHINA – rapeseed procurement:  As opposed to soybeans, the state procurement/stockholding programme for rapeseed is set to remain in place. Reportedly, country-wide government purchases of winter and spring rapeseed will commence in June, with a target procurement volume of 5 million tonnes and a fixed price of Yuan 5 100 per tonne (USD 821) – unchanged from last year. The procured rapeseed will be processed into oil for storage.   "]
[2014,"June","EUROPEAN UNION – biofuel policy:  With regard to limiting the use of food crop-based biofuels under the bloc’s renewable energy policy, discussions between the European Council and the newly elected EU Parliament are likely to resume in the coming months (see MPPU Feb.’14). Reportedly, in May, member states provisionally agreed to cap the use of ‘first generation’ fuels at 7%, whereas ‘advanced biofuels’ would be subject to a non-binding target of 0.5%. Last year, the EU Commission had suggested to cap food crop-based biofuels at 5%, whereas the EU Parliament proposed 6%. Regarding mandatory measurement of GHG emission levels (including the effects of indirect land use changes), the member countries’ position was not reported."]
[2014,"June","EUROPEAN UNION – GMO policy - Screening of GM soybean variety:  As member states could not agree on approving soybean variety MON87708 (for food and feed uses, import and processing, but not for cultivation), approval by the EU Commission appears likely. The new GM event, which is tolerant to dicamba-based herbicides, has been cleared by the European Food Safety Authority. "]
[2014,"June","EUROPEAN UNION – GMO policy - General approval process:  EU member states might overcome the current deadlock on the bloc’s approval mechanism for GM crops. Reportedly, they could reach agreement on a compromise deal that would make it easier to win approval for GMOs, while giving individual countries the right to ban GM cultivation. Once formally approved by the EU Council, the pact would still require the backing of the recently renewed EU Parliament."]
[2014,"June","INDIA – vegetable oil import duties:  Reportedly, India’s new government will leave import tariffs for vegetable oils unchanged in the short term due to concerns over inflation. Instead, policies to promote domestic oilseed production could be adopted. Unable to compete with low-priced imports (especially of refined palm oil from Indonesia), domestic oilseed processors called on the government to further raise import duties (tariffs were last raised in January 2014 - see MPPU Feb.’14). "]
[2014,"June","INDONESIA – palm oil policy - Variable export tax:  Given relatively stable global benchmark prices, in June, the country’s export tax for crude palm oil will remain unchanged at 12%."]
[2014,"June","INDONESIA – palm oil policy - Downstream industry promotion:  In a bid to further support Indonesia’s downstream processing, the Ministry of Industry is considering changes in the country’s palm export taxation system. Apparently, thanks to a number of policy incentives, the country’s palm oil refining capacity is set to expand by almost 50% to 45 million tonnes in 2014 – which compares to a crude palm oil production forecast of 30 million tonnes. Reportedly, the main policy change under consideration concerns the suspension of export duties for high value-added oil palm products (such as palm oil-based biodiesel, hydrogenated palm oil and palm meal). Market observers pointed out that removing export taxes for downstream products that are in high demand also domestically, in particular biodiesel, could prove problematic."]
[2014,"June","MALAYSIA – variable palm oil export tax:  In June, the country’s export tax on crude palm oil will stay at 5.5%, the rate in place since last April."]
[2014,"June","MALAYSIA – oil palm sector development:  The government has renewed its efforts to raise productivity levels among smallholders: Ringgit 28 million (USD 8.7 million) have been allocated to independent smallholders to undertake replanting and new planting of oil palm, targeting 35 000 hectares in total. Challenges faced by the government programme are said to include:  uncertainty over palm oil prices; limited interest by independent smallholders to replant; and land ownership and sustainability issues in Sarawak state. Reportedly, the government is also encouraging entrepreneurs to participate in the oleo-derivatives segment: an additional Ringgit 56 million (USD 17.5 million) in development grants will be made available this year, particularly for the production and commercialization of second generation biofuels, i.e. fuels derived from non-food biomass such as empty oil palm fruit bunches, trunks and tree fronds."]
[2014,"June","NIGERIA – sector support:  Reportedly, some 1 500 oil palm farmers in the Delta state will be supported under the federal government’s ‘Growth Enhancement Scheme’. In a bid to strengthen oil palm cultivation, farmers will be provided with improved oil palm seedlings, fertilizers and agro-chemicals."]
[2014,"June","UKRAINE – export policy - Export taxation for sunflower oil:  The Ukrainian Parliament has registered a draft law proposing the introduction of a 3% tax on sunflower oil exports, starting in January 2015. To date, shipments of sunflower oil and sunflowerseed have been subject to temporary quotas, and exports of sunflowerseed are taxed since 2000 (currently at 10%) to promote domestic processing and exportation of higher value-added products."]
[2014,"June","UKRAINE – export policy - Export de-regulation for oilmeals/cakes:  With a view to facilitate exports of oilmeals and cakes, traders are no longer required to obtain export permissions from the Ministry of Ecology and Natural Resources. Until now, phytosanitary certificates had to be issued for every export contract.  "]
[2014,"June","UNITED STATES – GMO labelling:  In the state of Vermont, a law on mandatory labelling of GM foods has been passed. The first such law at state level is set to take effect in mid-2016. The bill introduces labelling for processed GM foods as well as for displays of unpackaged GM products by retailers (for example at farmers markets). Only restaurants will be exempt. The states of Maine and Connecticut have previously passed similar bills, but their laws will only take effect once neighbouring states issue similar regulations. In California, legislators have rejected – for the second time – a bill requiring labelling of GM foods. In the meantime, members of the US Congress are reported to be working on a bill that would forbid states from enforcing laws on mandatory labelling, while a different bill proposes voluntary labelling of GM foods based on norms to be issued by the US Food and Drug Administration (see also MPPU Feb.’14).        "]
[2014,"June","UNITED STATES – biofuel policy:  Minnesota, the first US state to have introduced mandatory blending (in 2002), decided to raise – during the summer months – its current B5 blending requirement (i.e. a 5 percent biodiesel/petroleum blend) to the B10 level (10 percent blend). This year, the higher blend will be available at pumps from July through September, whereas  next year, sales will start in April. While soyoil will remain the principal feedstock, at least 5% of Minnesota’s biodiesel needs to be produced from non-agricultural resources. Reportedly, the temporary switch to B10 will translate into an additional demand of about 67 000 tonnes per year. In 2018, Minnesota could move to B20."]
[2014,"June","UNITED STATES – agricultural policy:  USDA’s ‘Farm Storage and Facility Loan Program’ has been expanded. The measure aims at enhancing the access of small and mid-sized producers to low-interest financing for building or upgrading facilities to store and handle commodities. Eligible commodities include oilseeds.  ",null,"         "]
[2014,"June","VIETNAM – countervailing duty:  Vietnam’s 1 year-old countervailing duty on vegetable oils has been lowered from 5% to 4%. The duty is meant to be reduced gradually until it reaches 2% in 2017 (see MPPU Sep.’13).      "]
[2014,"June","Co-existence of GM and non-GM:  In Western Australia, a producer of organic rapeseed has lost a landmark court case against a neighbour that cultivated genetically modified rapeseed. Allegedly, GM rapeseed had drifted onto the organic farm contaminating the crop, eventually causing the concerned farmer to lose his organic certification. As Australia maintains a zero-tolerance approach regarding GM presence in organic foods, the court ruling could result in calls for less strict regulations on contamination. On the other hand, organic producers want Australia to maintain its position on the global market as a prime supplier of non-GM rapeseed. Cultivation of GM rapeseed started expanding in recent years and is now reported to account for 15–20% of the national crop. Since GM crops can be grown by any farmer without restrictions, organic proponents are calling for changes in the country’s liability laws that would guarantee adequate protection for their crops."]
[2014,"June","Sustainable palm oil production – responsible sourcing - In recent months, multinational companies involved in palm oil trade and consumption started paying increased attention to environmental and social sustainability issues. The latest initiatives in this field include:  ADM Co:  Global agri-trade firm ADM Co. plans to provide, from 2015 onward, its North American customers exclusively with palm oil certified by RSPO (Roundtable on Sustainable Palm Oil). The company informed that it will team up with global palm oil buyer Wilmar International to source fully traceable, sustainably produced palm oil, based on RSPO’s mass balance calculation system."]
[2014,"June","Sustainable palm oil production – responsible sourcing - In recent months, multinational companies involved in palm oil trade and consumption started paying increased attention to environmental and social sustainability issues. The latest initiatives in this field include: Danone:  Global food company Danone committed to source exclusively certified palm oil from 2015 onward – well before the 2020 target set only two years ago. The company intends to go beyond RSPO standards by protecting not only primary forests but also tropical peatland and second-growth forests. Danone asked The Forest Trust for assistance in mapping out the company’s supply chain so as to obtain an accurate picture of the changes its suppliers need to implement."]
[2014,"June","Sustainable palm oil production – responsible sourcing - In recent months, multinational companies involved in palm oil trade and consumption started paying increased attention to environmental and social sustainability issues. The latest initiatives in this field include: Johnson & Johnson:  Personal care products company Johnson & Johnson published a new palm oil sourcing policy encompassing a range of social and environmental criteria. Sourcing fully traceable, certified products is expected to pose challenges because the company buys a wide range of oleochemical products that contain palm oil coming from different plantations, processing plants and countries. The company will collaborate closely with no-profit organization The Forest Trust.  "]
[2014,"June","Sustainable palm oil production – other news - Papua New Guinea:  Reportedly, the National Court of Papua New Guinea declared leases offered to an overseas investor invalid, and ordered the government to revoke the corresponding licenses that granted permission to convert some 38 000 hectares of rainforest and community forest into oil palm plantations. Apparently, the concerned indigenous communities had opposed the planned expansion onto their customary land, saying that they relied on the natural landscape of the region as the basis for their economy and subsistence livelihoods."]
[2014,"June","Sustainable palm oil production – other news - Sustainability indicators:  Palm Oil Innovation Group (POIG), a group established by a number of NGOs and palm oil producers, has issued a set of indicators meant to allow independent verification that palm oil is produced according to POIG’s charter. Apparently, while built on RSPO’s certification standards, the charter includes additional requirements to ensure that palm oil operations are free from deforestation, conversion of peatland, and human/social right violations."]
[2014,"June","Sourcing sustainably produced soybean:  In a recently published report, WWF (World Wildlife Fund) assesses the use of responsibly produced soy for animal feed in Europe. The report finds that a number of companies along the supply chain for animal feed made strong commitments to stop sourcing soybeans produced with unsustainable methods. However, many companies are reported to lag behind in commitments and, in particular, in actual purchases of certified soy – a situation that is said to leave soybean farmers in producing countries with little incentives to adopt sustainable practices and invest in certification (see also MPPU May & June ’12). The report points out that responsible sourcing is being increasingly used by the retail sector. Reportedly, due to the complexity of the soy value chain, unbranded companies do not feel the same consumer pressure as retailers.    "]
[2014,"July","CANADA – sector development:  The federal government, the province of Manitoba and a farmer-funded research foundation jointly provided a CAD 1.8 million (USD 1.68 million) grant to the National Sunflower Association of Canada (NSAC) for the development of disease-resistant and herbicide-tolerant confectionary sunflower hybrids that meet the needs of growers and of the international market.     "]
[2014,"July","CHINA – state procurement/reserves – Soybean sales:  Between mid May (when this year’s government auctions started) and mid June, a total of 1.2 million tonnes of soybeans have been sold from public stockpiles (see also MPPU June ’14). Reportedly, in June, demand from domestic crushers slowed down, partly reflecting concerns over quality as the soybeans offered stemmed from the 2011 harvest. The average auction price paid during the first half of June was below that achieved in May."]
[2014,"July","CHINA – state procurement/reserves – Rapeseed procurement:  According to official sources, around 5 million tonnes of rapeseed will be purchased by government agencies this year to protect farmers’ incomes and stabilize domestic prices. The minimum purchase price has been set at Yuan 5 100 per tonne (USD 823) – unchanged from last year and substantially above current international quotations."]
[2014,"July","EUROPEAN UNION – biofuel policy:  EU governments agreed to limit to 7% the share  of first generation biofuels (i.e. fuels made from food crops) in transportation fuel (see MPPU June ’14). The draft proposal now requires approval by the recently-elected EU Parliament. Last year, MPs agreed on a 6% cap, while the EU Commission had proposed 5%. Currently, about 5% of EU transport fuel are estimated to come from first generation biofuels. The official proposal also contains a non-binding 0.5% target for next-generation biofuels (i.e. fuels produced using non-food feedstock). With respect to GHG emission savings resulting from the use of biofuel – including the effects of indirect land use changes – the proposal suggests that these be recorded by the EU Commission based on data reported by member states. "]
[2014,"July","EUROPEAD UNION – GMO policy:  EU environment ministers have agreed on a proposal that would allow member states to restrict or ban the cultivation of GMOs within their borders – even when crops have been authorized at EU level (see also MPPU June ’14). Under the proposal, countries would be allowed to prohibit GMOs on various grounds, including public policy issues, socio-economic concerns, agricultural policy objectives, and town planning or other land use considerations. Current rules merely allow countries to invoke precautionary safeguard bans based on assessed risks to human health or the environment. The draft law primarily aims to accelerate GMO endorsements at EU level. Criticized for causing considerable delays, the current practice has led to formal complaints by a number of EU trade partners. The next steps are the proposal’s endorsement by the full EU Council and final approval by the EU Parliament."]
[2014,"July","EUROPEAN UNION – import restriction:  The EU decided to end all import restrictions on sunflower oil from Ukraine. The measure – in the form of a strict testing and certification scheme – was imposed back in 2008, following the discovery of consignments contaminated with paraffin. As tests carried out at EU borders revealed no further contamination, the testing regime started to be gradually relaxed from 2009 onward."]
[2014,"July","INDIA – minimum support prices:  The government decided to raise the minimum support prices for selected kharif oilseed  crops:  for sunflower seed, the new price is Rs 37 500 per tonne (USD 624), which compares to Rs 37 000 last season; for sesame seed Rs 46 000 (USD 766), up from Rs 45 000; and for nigerseed Rs 36 000 (USD 599), up from Rs 35 000. By contrast, for soybean and groundnut, the two main kharif oilcrops, support prices will remain unchanged from last year. The prices for rice, selected coarse grains and pulses have also seen small upward adjustments."]
[2014,"July","INDONESIA – variable palm oil export duty:  Following the recent decrease in international palm oil prices, the country’s variable export tax on crude palm oil has been set at 10.5% in July, down from the 12% rate in place since May 2014."]
[2014,"July","INDONESIA – export promotion:  Reportedly, Indonesia’s trade ministry plans to initiate talks on preferential trade arrangements with counterparts in Turkey. The objective would be to facilitate exports of Indonesian palm oil to Turkey. The initiatives comes after Malaysian palm oil exporters gained preferential access to the Turkish market thanks to a recently signed bilateral agreement (see MPPU May ’14). Reportedly, in addition to supplying the Turkish market, Indonesia is keen to set up trade hubs to expand its palm oil sales in Southeast Europe, Central Asia and the Middle East."]
[2014,"July","INDONESIA – WTO notification:  Indonesia has notified the WTO Secretariat of a request for formal consultations with the European Union concerning the anti-dumping measures imposed on imports of biodiesel into the EU (see MPPU June & Dec.’13). Should consultations to resolve the dispute prove unsuccessful, Indonesia may request adjudication by an independent panel. The anti-dumping measures in question have already been challenged by Argentina in a separate case (see MPPU Jan. & May ’14). Before the EU introduced special tariffs, Argentina and Indonesia together accounted for about 90% of the bloc’s biodiesel imports and held a 20% share of the EU’s biodiesel market."]
[2014,"July","INDONESIA – biodiesel target:  According to both private observers and government sources, Indonesia will not be able to meet the ambitious biodiesel consumption target set for the current year (see MPPU Sep. & Nov. ’13). Blending operations and the fuel’s nation-wide distribution are reported to suffer from considerable logistical and infrastructure problems."]
[2014,"July","MALAYSIA – variable palm oil export duty:  Following the recent decrease in international palm oil prices, from July, the country’s variable export tax on crude palm oil will be 5%, down from the 5.5% rate in place since last April."]
[2014,"July","RUSSIAN FEDERATION – sector development:  The Ministry of Agriculture approved a 2-year programme promoting the development of the nation’s oilseed production and vegetable oil industry. Total funding for 2014-16 will amount to RUB 34.5 billion (USD 1 billion), of which producers and crushers will contribute one third, while the remainder will be covered from public sources in the form of loan guarantees. Under the programme, the ministry will support the purchase of seeds through interest rate subsidies."]
[2014,"July","THAILAND – consumption policy:  Reportedly, the country’s retail sector agreed to maintain prices for essential consumer goods – including cooking oils – frozen until November 2014. The government asked the private sector to collaborate so as to help people cope with rising costs of living. Reportedly, inflation in Thailand has accelerated in recent months due to higher food and energy prices, increasingly burdening consumers."]
[2014,"July","Plant protection and related issues - Herbicide residues in GM soy:  Researchers in Norway claim to have found residues of glyphosate and its metabolites (i.e. the herdicide used on ‘RoundUp-Ready’ soybeans, a GM soy variety cultivated worldwide, in particular in the United States) in the US food/feed  supply chain. Based on their findings, the researchers reject the hypothesis of substantial equivalence between GM and non-GM soybeans and point to related nutritional and health implications."]
[2014,"July","Plant protection and related issues - Insecticide ban:  In the EU, a group of insecticides (viz. neonicotinoids) thought to be harmful to honeybees has been outlawed (see also MPPU June ’13). Reportedly, the ban has led to an abrupt end in Finland’s rapeseed cultivation. In Finland, cultivation of turnip-rapeseed – a species adapted to the country’s short growing season – relied strongly on the banned insecticides."]
[2014,"July","Plant protection and related issues - Fungus resistance of soy:  A new technique developed by US scientists should facilitate the identification of resistance to phomopsis longicolla, a fungus causing phomopsis seed decay in soybean."]
[2014,"July","Plant protection and related issues - Insect attack in coconut:  Threatening to compound the typhoon damage inflicted on the Philippine coconut sector last year, a pest, aspidiotus rigidus, is menacing the livelihood of 3.5 million coconut farmers. Towards end June, the disease was reported to have affected a total of 2.1 million trees. The mortality rate among infected trees is 65%, while fruit yields are reported to drop by about 60% on average. Coconut palm products represent the country’s main agricultural export. Efforts to combat the invasive insect are underway. A nationwide campaign implemented by the Philippine Coconut Authority includes chemical and mechanical measures, the utilization of biological control agents, quarantining of infested areas, and fertilization to hasten revival. Treated trees are expected to recover within six months, following which maintenance programmes will be implemented."]
[2014,"July","Palm oil processing:  Conventional palm sterilization, extraction and clarification processes utilize significant quantities of water and energy. They also result in a substantial amount of Palm Oil Mill Effluent (POME) and waste water, creating pollution issues. A new patent aiming to address these problems has been issued in the US. Reportedly, the new technology is based on ultrasonic extraction methods, while the oil clarification process is enhanced through megasonic vibrations."]
[2014,"July","International Olive Council (IOC):  The following topics have been addressed at a recent meeting of IOC, the intergovernmental organization that brings together olive oil and table olive producing and consuming stakeholders:  good practice concerning CO2 balance in the olive oil life cycle and software tools allowing to calculate CO2 emitted and captured in olive oil production;  conservation of genetic olive resources, plant propagation techniques and olive nursery activities;  self-monitoring agreements aiming to combat oil adulteration;  promotion of a seal certifying conformity with IOC standards in import markets;  proposals of a generic promotion campaign in Japan;  and regulation and proper labeling – at the national level – of flavoured and infused olive oils so as not to mislead consumers."]
[2014,"July","Novel varieties - Functional safflower oil:  A US biotechnology company announced the commercial launch of a safflower oil containing 55% of gamma linolenic acid (GLA), a omega-6 fatty acid believed to offer health benefits similar and complementary to those of omega-3 fatty acids. The oil will be grown and produced in the United States under strict identity preservation protocols."]
[2014,"July","Novel varieties - Non-GM soyoil:  Catering for customers interested in displaying a non-GM claim on their products, global agribusiness and trading firm Cargill started marketing an identity preserved soybean oil made from conventionally-bred soybeans. Marketing non-GM oil implies procurement from dedicated sources and special procedures to avoid co-mingling with GM-material during harvesting, transportation, storage, handling, processing and refining."]
[2014,"July","Sustainable palm oil – certification and sourcing issues - Indonesia – RSPO collaboration:  Reportedly, the Indonesian government plans to work together with RSPO (Roundtable on Sustainable Palm Oil) towards a joint sustainable palm oil standard. Collaboration is meant to help scale up production of certified sustainable palm oil in Indonesia. Emphasizing the need to make sustainable production a viable business for all growers (including smallholders), Indonesia proposed to convert RSPO into an “open source” standard available also to non-RSPO members."]
[2014,"July","Sustainable palm oil – certification and sourcing issues - RSPO certification maps:  The RSPO has released maps showing the exact location of all RSPO certified oil palm plantations. Hosted on an external platform (managed by the World Resources Institute) and publicly available in an accessible format, the maps are meant to support responsible sourcing by palm oil buyers while protecting forests. Enhanced transparency on where palm oil is produced should help policymakers, buyers and the public find out whether palm oil from a specific plantation is produced in a sustainable manner."]
[2014,"July","Sustainable palm oil – certification and sourcing issues - FELDA:  Malaysia’s state-owned plantation company FELDA Global Ventures – one of the world’s largest palm plantation operators – has committed to achieve full RSPO certification of its palm oil production by 2017. With regard to MSPO, the recently launched separate certification standard for Malaysia, FELDA officials said that any national system had to be at par with RSPO’s international standard as otherwise producers would not be able to export."]
[2014,"July","Sustainable palm oil – certification and sourcing issues - Mondelez:  Global packaged foods company Mondelez International has adopted a sustainable palm oil action, which requires suppliers to guarantee full traceability by the end of 2015. Suppliers are also expected to publish sustainable sourcing policies and implementation timelines. The company committed to report progress annually."]
[2014,"July","Land disputes in plantation crops:  The plantation sector of Indonesia is reported to be vulnerable to land disputes. According to official sources, only 30% of the country’s total plantation estate area is registered with the responsible government agency, implying that 70% of plantation estates are unregistered and thus susceptible to land conflicts. Reportedly, estates managed by state-owned enterprises and private Indonesian individuals tend to be more vulnerable than land under control of foreign firms as the latter are subject to stricter permits and regulations. At the global level, several cases of land right disputes and related social conflicts with native communities have been reported in the oil palm industry in recent years. Internationally recognized principles and criteria for sustainable palm oil production include the requirement of free, prior and informed consent of indigenous/local communities when new plantations are developed."]
[2014,"September","ARGENTINA – biodiesel policy:  Starting on 13 August 2014, the tax collected on exports of soyoil-based biodiesel will be 12.5 percent, up from 11.2 percent in place since May 2014. Despite the small tax increase, Argentina should be able to sell biodiesel at attractive prices thanks to the current low price of soyoil, the principal feedstock. The tax was last revised in May 2014, when the government lowered export fees by almost half so as to support domestic biodiesel production and exportation (see also MPPU June ’14)."]
[2014,"September","BRAZIL – biodiesel policy:  The plan to shift to B7 – i.e. mandatory blending of transport diesel with 7 percent of biodiesel –  in November 2014, as proposed by the Government last May (see MPPU June ’14), has been approved by the country’s Congress. However, the blending rate may be scaled back to 6 percent if deemed necessary by the National Energy Policy Council. Lawmakers also  established that the feedstock needed to produce biodiesel ought to originate primarily from small to medium-sized family farms."]
[2014,"September","CANADA – transportation policy and farmer support:  Regulations obliging the country’s two major rail companies to guarantee minimum crop shipments have been extended by the government in an effort to avoid a repeat of last season’s transportation bottlenecks (see MPPU May ’14). The original requirement to collectively ship 1 million tonnes of grains and oilseeds per week until 3 August (i.e. the end of the 2013/14 season) has been replaced by an order to move 1.07 million tonnes per week between 3 August and 29 November  (i.e. the key period for marketing the country’s new crop). Reportedly, at the end of July, grain/oilseed leftovers from 2013 still amounted to 20.9 million tonnes or more than double the previous year’s holdings. As an added measure to assist farmers, grain and oilseed growers in Canada’s four western provinces that were unable to market their 2013 crops due to the transportation bottleneck have been granted an additional six months to repay the cash advances received last year under Canada’s agricultural production loan guarantee programme."]
[2014,"September","CANADA – seed crop certification:  The government provided financial support to the country’s Seed Growers’ Association to improve the existing seed certification process. A new system will be put in place that allows licensed seed inspectors to submit their reports more efficiently. The measure is expected to enhance the production and use of high-quality, variety-specific seeds."]
[2014,"September","CHINA – pesticide residue standards:  Reportedly, a new set of stringent pesticide residue standards has been adopted in China. The new regulations, which cover 387 pesticides, concern various types of food, including edible oils."]
[2014,"September","CHINA – soybean state reserves:  Since the start of this year’s campaign in May up to mid-August 2014, soybean sales from state reserves  totaled 1.9 million tonnes. Reportedly, most of the soybeans sold were from the 2011 crop. The average sale price achieved in the auction run on 12 August  was Yuan 4 101 per tonne (USD 666), which compares to a peak of Yuan 4 283 (USD 697) last May.   "]
[2014,"September","EGYPT – state import policy:  In Egypt, poor households are provided access to basic foods at subsidized prices. With regard to edible oils, the public distribution programme relies on state imports. In July, responsibility for the latter has been shifted from the country’s General Authority for Supply Commodities to the Food Industries Holding Company, another state-owned agency. Private sources described the move as part of wider reforms aimed at avoiding inefficiencies and reducing government outlays on food subsidies.  "]
[2014,"September","EUROPEAN UNION – biodiesel import restriction:  The EU Commission started reviewing the anti-dumping/countervailing duties imposed in 2009 – for five years – on biodiesel imports from the United States. The investigations will determine whether US imports still warrant such action. Meant to expire last July, the duties will now remain in place until the review is completed, i.e. for a maximum of 15 months."]
[2014,"September","INDIA – import policies - GM soybean oil and mustardseed:  Applications for imports of GM soybean oil have been cleared for the first time by India’s biotech regulatory body. Approval was given on the grounds that highly processed foods like edible oil do not contain detectable DNA or protein. The agency also permitted confined field trials of 13 GM crops, including GM mustard seed. In India, cultivation of GM crops remains highly controversial and so far only BT cotton has been cleared for commercial cultivation."]
[2014,"September","INDIA – import policies - Canola oil:  India’s food safety and standards authority has ordered importers of ‘canola oil’ (a widely used commercial term coined in Canada in the 1970’s for oils obtained from rape/mustard seed varieties with low levels of erucic acid and glucosinolate) not to import the edible oil under its brand name. Instead, the oil must be labeled ‘imported rapeseed-low erucic acid oil’. The measure resulted in shipments of the oil being detained at various ports. According to importers, replacing the term ‘canola oil’ with the technical name will likely disrupt sales as customers are used to the brand name."]
[2014,"September","INDIA – import policies - Oilmeal duties:  Oilmeal/cake have been exempted from import duties until 31 December 2014 in a bid to ease domestic supply shortages and bring down local oilmeal prices. The waiver does not apply to copra, cottonseed and palmkernel meal. Thanks to the waiver, buyers are expected to concentrate on sunflower meal imports. Imports of soymeal – which generally are of GM origin – continue to be hampered by restrictions applying to the importation of GM products."]
[2014,"September","INDIA – import policies - Vegetable oil duties:  Despite continued calls by the edible oil industry for higher import duties (see MPPU Feb. & June ’14), the government left vegetable oil import tariffs unchanged in its 2014/15 budget proposal. Reportedly, policy makers are concerned about higher food prices fueling domestic inflation. Actually, import duties on crude and refined palm stearin are expected to be reduced to zero (from, respectively, 20 percent and 15 percent) – a move that would help local soap producers but hurt domestic refiners (N.B. palm stearin is a triglyceride derived from palm oil, which is primarily used as a hardening agent in the manufacture of candles and soap).      "]
[2014,"September","INDONESIA – variable palm oil export tax:  Following the recent decrease in international palm oil prices, the country’s variable tax on crude palm oil exports will be reduced to 9 percent in September. The tax has been lowered gradually since April, when it stood at 13.5 percent.  "]
[2014,"September","INDONESIA – foreign plantation ownership:  Reportedly, Indonesia’s lawmakers are considering to limit foreign ownership of plantations (of oil palm and other perennial crops) to 30 percent. Under current law, foreign investors can own up to 95 percent. The draft bill is said to be in line with general policy efforts to safeguard environmental and social interests while maximizing the use of land and other resources. Late last year, legislation limiting the size of plantations throughout the country came into force (see MPPU Nov. ’13). Industry officials warned that limiting foreign ownership would hamper the inflow of capital at a time when external funds were urgently required to modernize the country plantation sector."]
[2014,"September","MALAYSIA – biodiesel policy:  Reportedly, the implementation of nationwide mandatory blending of transport diesel with 5 percent palm oil-based biodiesel (referred to as B5) has been delayed to December 2014 because construction of blending facilities in Eastern Malaysia are taking longer than expected. Originally, full implementation was scheduled for July this year. The mandatory shift to B7 (blends with 7 percent biodiesel) is planned for the first quarter of 2015.        "]
[2014,"September","MALAYSIA – variable palm oil export tax:  In response to the recent softening in international palm oil values, the country’s variable export tax on crude palm oil has been set at 4.5 percent for September. The tax had been lowered to 5 percent last July. Prior to that, it remained unchanged at 5.5 percent since April 2014.  "]
[2014,"September","PAKISTAN – import policy:  The country’s import duty on soymeal/cake has been raised to 5 percent effective from 1 July 2014. Reportedly, the measure is meant to discourage soymeal imports (which expanded strongly in recent years), while encouraging the importation of soybeans for domestic crushing."]
[2014,"September","PAKISTAN – canola development:  Pakistan’s Agricultural Research Council has launched a new initiative to promote domestic oilseeds cultivation in a bid to help reducing the country dependence on imported edible oil. The Council will promote the cultivation of canola type rapeseed in the Northeast and Northwest of the country. Farmers will be provided with access to (i) hybrid seed at subsidized prices, (ii) mechanized drilling, harvesting and threshing, and (iii) technical guidance on crop management and marketing.               "]
[2014,"September","RUSSIAN FEDERATION – import policy:  Effective 1 August 2014, the Russian Federation suspended all imports of Ukrainian soybean, soymeal and sunflowerseed. Allegedly, the ban was imposed due to a breach of phyto-sanitary requirements. The measure follows the introduction of import bans for pork, potatoes, vegetables and fruits from Ukraine.    "]
[2014,"September","RWANDA – soybean cultivation: The Rwandan government started promoting commercial soybean cultivation in a bid to raise domestic supplies of edible oil and reduce dependence on imports. According to government officials, 30 000 hectares have been earmarked to grow soybeans. Reportedly, resources have been mobilized under the government’s land consolidation programme, and private stakeholders are said to be determined to sensitize farmers to embrace soya.       "]
[2014,"September","Biofuel feedstock news –  Jatropha:  A 5-year jatropha development programme has been launched in Ethiopia with assistance from Norway. The project aims at an annual production of 0.4 million tons of jatropha-based biodiesel. Government sources claim that some 2.5 million hectares are suitable nationwide for jatropha cultivation. Currently, the country’s area planted with jatropha is estimated at 90 000 hectares."]
[2014,"September","Biofuel feedstock news  – Aviation fuel:  To help reduce its carbon emissions, Indonesian carrier Garuda is planning to use an aviation fuel blend containing 2 percent of biofuel starting 2016. The company’s commitment will depend on the technical suitability and availability of palm oil-based biofuel produced within in the country."]
[2014,"September","Certified sustainable palm oil:  US food companies ConAgra and J.M Smucker have joined the list of firms committed to sourcing palm oil only from certified sustainable origins. Both companies pledged to develop a fully sustainable and traceable supply chain, buying only from responsible and sustainable sources by December 2015. Meanwhile, global consumer goods company Procter & Gamble, which committed to sustainable sourcing earlier this year, confirmed its involvement in field activities to help small oil palm producers to adopt sustainable production methods (see also MPPU May ’14). The company has partnered with Malaysia’s Institute for Supply Chain Innovation to conduct this work.     "]
[2014,"September","Herbicide tolerant soybean:  Reportedly, US seed company Monsanto has developed a new GM soybean (brand name ‘Roundup Ready Xtend’) that is resistant to both, glyphosate- and dicamba-based herbicides, which makes the seed suitable for planting where weeds have become resistant to glyphosate. An environmental impact assessment conducted by USDA’s Animal and Plant Health Inspection Service (APHIS) concluded that the new variety is not likely to pose a plant pest risk to agricultural crops or other plants. Although its wide use would likely increase the chance of  weeds developing resistance to the herbicide dicamba, farmers can implement diversified weed management practices to mitigate that impact, says the report, which now is open for public comment."]
[2014,"September","Blackleg disease – Canada:  An increase in the incidence of blackleg, a fungal disease affecting rapeseed, has been observed in Canada in recent years. According to the Canola Council of Canada, until recently the disease could be controlled through varietal resistance alone, but now farmers need to implement other practices to protect their crops and preserve the efficacy of genetic resistance. Growers are encouraged to assess the incidence of the disease in their fields and urged to adopt best agronomic practices, including a 2- to 3-year cultivation break in high-risk fields. On a brighter note, Canada’s rapeseed industry could be close to restoring full access to the Chinese market (N.B. China restricted the entry of rapeseed in 2009 to prevent blackleg from spreading within China; subsequently, in 2012, China and Canada agreed to conduct specific research to address China’s concerns). Now first research results are said to be available on how the disease is transmitted and on appropriate risk mitigation strategies. Furthermore, Canada’s grain handling and transportation network has been equipped to prevent the disease from spreading. Canadian trade officials hope to be close to a resolution of the trade impasse. "]
[2014,"September","Seed royalty payments – Brazil:  In Brazil, US seed company Monsanto would like commodity trading firms to ensure that farmers pay the royalty fees for its new GM soybean variety ‘Intacta-RR2-Pro’. However, local traders insist that, while they may monitor the process, they cannot assume legal responsibility for the collection of royalties. The new variety, which has been developed specifically for South America and is said to be resistant to the helicoverpa armigera caterpillar (see also MPPU Dec ’13), is expected to make up one quarter of Brazil’s forthcoming soy crop. Reportedly, unless the stalemate is solved, local traders may not be able to purchase soy from farmers who planted ‘Intacta-RR2-Pro’.       "]
[2014,"September","Futures markets – China:  Dalian Commodity Exchange (DCE) in China has launched night trading for palm oil with a view to better address investors’ demand. Exchange officials explained that DCE palm oil futures are strongly linked to other international trading platforms. "]
[2014,"September","Japan – state-backed investments in Brazil:  Reportedly, a Japanese bank is willing to extend a large loan to one of Brazil’s largest private soybean operations. The deal is backed by Japan’s government-owned export credit agency NEXI. Furthermore, Japanese companies –  with support from Japan’s Bank for International Cooperation – are ready to collaborate with Brazilian firms in the development of Brazil’s infrastructure for agricultural exports, including the soybean export hub of Itaqui on Brazil’s northeastern coast. Through these investments, Japan intends to strengthen its ties with major food suppliers in Brazil, thereby ensuring food security at home and serving the interests of Japanese firms involved in global trade."]
[2014,"September","Chinese investment plans in Brazil:  Reportedly, also Chinese investors have shown interest in Brazilian infrastructure projects, to help secure the flow of raw material exports to China, iron ore, mineral oil and soybeans, in particular. According to government officials, projects under consideration include railways to the ports of Ilheus and Itaqui in Brazil’s Northeast, as well as a railway across the Andes to the pacific coast of Peru. In addition to significantly lowering freight costs to China, the new export corridors would reduce congestion in Brazil’s southbound highways and southern ports."]
[2014,"November","ARGENTINA – market regulation:  Based on a new bill that enables the government to regulate the relationship between supply and demand of goods and services, the government considered regulating the production and marketing of grains, in particular soybeans. Reportedly the objective was to address market shortages that developed after farmers delayed grain sales, so as to use their crops as a hedge against inflation and currency devaluations. Thanks to recent negotiations between the government and the private sector, farmers are said to have committed releasing grains in the domestic and foreign markets,   with an estimated USD 5.7 billion worth of soybeans and grains expected to be exported in the last quarter of 2014."]
[2014,"November","ARGENTINA – biodiesel policy:  The government reiterated its plans to raise the country’s mandatory blending rate for soy oil-based biodiesel. The aim is to increase domestic consumption, as biodiesel exports stagnated. and to contain government outlays for the importation of crude oil. Originally planned for 2012, the shift to a compulsory blending rate of 10% is now scheduled for December 2014. The average biodiesel content in fuel sold in Argentina is currently estimated to range between 5% and 7%. If realized, the 10% rate would lift domestic biodiesel consumption to about 1.5 million tonnes per year."]
[2014,"November","CANADA – transportation policies:  Barring unexpected build-ups of grains at elevators in Western Canada, the government is set to let the minimum shipment requirement imposed on national railway companies expire on 29 November 2014 (see also MPPU Sep.’14).  Strict regulations and controls had been introduced back in March this year, after a bumper harvest and severe winter led to major logistical problems. According to government officials, since the start of this year’s harvest, there have been no major bottlenecks in moving crops to the country’s ports. Hence the decision to end the regulatory measure. "]
[2014,"November","CANADA / REP. OF KOREA – free trade agreement:  Under the bilateral free trade agreement signed in September, the Republic of Korea is expected to remove immediately its 5% tariff on rapeseed imports from Canada, while the tariffs applied to crude and refined rapeseed oils would be phased out over, respectively, seven and three years. The Canola Council of Canada expects rapeseed/rapeseed oil shipments to the Republic of Korea to expand strongly as a result of the agreement. The two governments still have to pass the enacting legislation for this to take effect."]
[2014,"November","CANADA / EUROPEAN UNION – comprehensive economic and trade agreement:  A declaration marking the end of formal negotiations has been signed by the two countries (see also MPPU Nov.’13). The agreement, which is expected to be implemented in early 2016, has been welcomed by Canada’s canola industry, which hopes to benefit from (i) the EU’s elimination of import tariffs on rapeseed oil, and (ii) provisions to reduce biotechnology-related trade hurdles. Industry officials underlined the importance of timely and predictable approval of new rapeseed varieties containing GM-traits to Canada’s exporters. Reportedly, the two countries agreed to set up a working group that will look into the timeliness of approvals, science-based assessment methods, and special regulations for low-level GM presence in shipments.  "]
[2014,"November","CHINA – state oilseed procurement - Rapeseed:  Private sources reported a marked slowdown in the volume of rapeseed procurement for state food reserves in 2014. Reportedly, as of early August, rapeseed purchases stood at 3 million tonnes, down from over 5 million tons at the same time last year. Total rapeseed  purchases from this year’s crop are forecast at 3.5 million tonnes, which compares to 6.2 million tonnes procured during the last campaign. The decline has been attributed to a lower rapeseed harvest than officially reported, a more restrictive government purchase policy, and a high volume of foreign commercial purchases during the 2013/14 marketing season. Reportedly, in 2015, the government could abandon state procurement of rapeseed altogether, shifting – as already done for soybeans – to a system of direct subsidy payments for farmers."]
[2014,"November","CHINA – state oilseed sales/price support - Soybean:  Reportedly, between May (when the government began this year’s auctions from state reserves) and early September 2014, more than 5 million tonnes of soybeans have been offered for sale, with only 2.2 million tonnes actually sold. Meanwhile, starting in the current season, the state procurement system for soybeans will be replaced with direct subsidy payments. Instead of selling to the government, farmers will sell their beans in the open market, and whenever market prices fall below a set target prices, the government will pay the difference based on the farmers’ planting area and on volumes sold to crushers. For the 2014/15 campaign, the official target price has been set at Yuan 4 800 per tonne (USD 784). For comparison, last season, the official purchase price had been fixed at Yuan 4 600 per tonne (USD 752). Reportedly, market prices will be regularly monitored by public officials in the country’s main soybean growing provinces."]
[2014,"November","INDIA – vegetable oil tariff values/rates:  In October, the official tariff was raised for soybean oil , lowered for crude and refined palm olein, and left unchanged for crude palm oil. Used as reference prices for calculating import levies, tariff values are adjusted periodically to ensure that they reflect changes in international benchmark prices. With regard to tariff rates, the country’s industry reiterated its calls for higher import duties on edible oils, claiming that recent import surges have led to marked drops in local market prices, hurting the refining industry as well as farmers. India’s Food Ministry was reported to be in favour of raising the tariffs for crude and refined edible oil from their current level of 2.5% and 10% respectively. A government official didn’t exclude a hike in import duties of more than 5 percentage points, adding that the final decision would rest with the Finance Ministry."]
[2014,"November","INDIA – biodiesel policy: Reportedly, the government is considering to promote domestic production and consumption of biodiesel. Depending on the outcome of inter-ministerial consultations,  the government was envisaging to impose a blending of diesel with 10% biodiesel made from virgin or used vegetable oils/animal fats. Initially limited to the railways and defence sectors (because of limited biofuel availability and quality issues), the scope of mandatory blending would gradually be expanded to include all diesel vehicles. According to a local biodiesel producer, biodiesel is currently sold at a small discount to conventional diesel."]
[2014,"November","INDIA – minimum support prices:  Support prices for rabi oilseeds crops (which will be sown later this year for harvest in 2015) have been revised upwards. For rape and mustardseed, the price per tonne has been set at Rs 31 000 (USD 505), and for safflowerseed at Rs. 30 500 (USD 476) – about 1.6% higher than last year. By comparison, the support prices for wheat, barley and lentils have been hiked by 3.5% – 4.5%, and for chickpeas by 2.4%."]
[2014,"November","INDONESIA – palm oil export tax and biodiesel policy:  Following sharp drops in domestic palm oil prices, the government decided to suspend the country’s variable export tax on crude palm oil for the months of October and November. The measure aims to stimulate exports, thereby bringing down domestic stock levels and halting the current decline in prices. The government’s decision followed a similar move, in September, by rival exporter Malaysia. Prior to the suspension, Indonesia’s exports were charged a 9% levy. The last time the tax was set at zero was in December 2009. One reason behind the recent surge in palm oil stocks has been lower than expected uptake by the local biodiesel industry. Apparently, the implementation of mandatory blending of diesel with palm-oil based biodiesel has fallen considerably behind schedule (see also MPPU Mar. & July ’14). With a view to raise domestic demand for palm oil, the government now plans to make 10% blends (B10) available nationwide by the end of this year, while the shift to B20 is envisaged for the year 2016. "]
[2014,"November","INDONESIA – plantation sector policy:  The government has approved comprehensive legislation regulating plantation ownership across the country. The new bill aims at maximizing land usage while ensuring adequate participation of smallholders in the plantation sector. All plantation firms are required to allocate 20% of their land to local farmers and to assist the latter in setting up their own plantations. Companies have been given five years to comply with the new rules. A controversial clause that would have drastically limited foreign ownership has been dropped from the final bill (see also MPPU Sep.’14). A law introduced last year to limit the size of new plantations to 100 000 hectares complements the bill (see MPPU Nov.’13)."]
[2014,"November","INDONESIA – environmental policy:  According to palm oil industry sources, the government is ready to issue new regulations on the conservation and management of peatland. Details of the law have yet to be made public. The protection of peat forests is considered to be of high environmental relevance as these fragile ecosystems contain large amounts of carbon dioxide that get released into the atmosphere if destroyed. Reportedly, the country is home to 14 million hectares of peat forests, of which some 9 million have been developed, with conversions into oil palm plantations accounting for about 1.7 million hectares. Industry officials have warned that full implementation of the regulations would entail major losses in terms of export revenues as well as forgone returns from new plantation investment, in addition to causing special hardship for smallholder farmers. Also civil society groups have been critical of draft versions of the bill, claiming that the proposed law (i) failed to take a holistic view of managing peatlands, (ii) didn’t protect peat in existing concessions, (iii) could increase land tenure conflicts among local people, and (iv) lacked coherent action by different government agencies.                        "]
[2014,"November","MALAYSIA – palm oil export tax and biodiesel policy: In early September, the government suspended its variable tax on crude palm oil (CPO) exports for two months to encourage shipments amid weak demand and swelling stockpiles. Prior to September, CPO exports attracted ad valorem taxes between 4.5% and 5.5%. The decision to temporarily suspend taxation was taken with a view to mitigating the on-going decline in CPO prices. In mid October, as CPO prices failed to recover, the government chose to extend the tax exemption until the end of this year. To stimulate domestic consumption, the government also decided to bring forward to December 1st the implementation of B7, i.e. nationwide mandatory blending of diesel with 7% of palm oil-based biodiesel. Only two months ago, the government had opted to delay the introduction of 5%-blends (B5) to December on technical grounds, leaving the transition to B7 for the first quarter of 2015 (see MPPU Sep.’14). Reportedly, nation-wide implementation of B7 will translate into an annual demand of 575 000 tonnes of biodiesel, production of which would require roughly 650 000 tonnes of CPO.   "]
[2014,"November","MALAYSIA – palm oil certification:  Officially presented last year, Malaysia’s national standard and certification system MSPO (Malaysian Sustainable Palm Oil) is currently being tested by the industry, in preparation of its country-wide implementation by the end of this year. The responsible government agencies reported that the standard has been put to test in seven oil palm  plantations and seven palm oil mills. The decision on whether the scheme will remain voluntary or become mandatory remains open. Reportedly, the standard has been developed to specifically address the needs of mid-range and smallholder oil palm growers, who find it difficult to comply with the principles and standards of RSPO (Roundtable on Sustainable Palm Oil). MSPO will apply to all categories of the oil palm industry and is said to comply fully with relevant Malaysian laws and ratified international agreements (see also MPPU May ’14)."]
[2014,"November","RUSSIAN FEDERATION – import policy:  Reportedly, the government is considering to set the maximum allowed content of hydrogen peroxide in palm oil imported from Indonesia and Malaysia at 0.9% – which would be more stringent than the international standard of 5% set by the Codex Alimentarius. Reportedly, the level of peroxide in palm oil tends to increase during transport. It can be corrected through refining at the port of delivery."]
[2014,"November","UNITED STATES – agricultural policy:  USDA informed that, as part of the broader Farm Bill, a new programme providing relief to farmers affected by severe weather is going to be implemented from next year. Thanks to the new regulation, eligible producers of selected crops, including soybeans, groundnuts rapeseed and sunflowerseed, will be able to benefit from better risk coverage under the federal crop insurance programme."]
[2014,"November","UNITED STATES – transportation policies:  Following record maize and soybean harvests, the US farm belt is increasingly strained by rising demand for shipping capacity. Reportedly, an overburdened river freight system has resulted in rail congestions and truck shortages. New players in the market, notably producers of crude oil from the country’s shale gas boom, are said to have exacerbated the situation. Consequently, grain/soybean producers and processors in the Midwest are increasingly concerned about delays in moving their products to the marketplace. To address the problem, the state of Iowa decided to allow the transportation of overweight truck loads of certain products (soybeans, maize, hay, straw and silage) for a period of 60 days starting October 1st."]
[2014,"November","VIETNAM – tax policy:  In a bid to support domestic livestock production, the government has decided to exempt all animal feed, including soybean meal, from VAT payment. Until now, animal feed was taxed at 5%. Reportedly, in the last few seasons, livestock producers have been increasingly affected by disease problems, difficulties in breeding farm animals, declining domestic  consumption and rising dependence on imported feedstuff. The tax exemption aims at stabilizing feed prices in the domestic market."]
[2014,"November","SECTOR DEVELOPMENT INITIATIVES -  Brazil – castorseed:  Brazil’s federal agricultural research agency EMBRAPA and Israeli biotech company Evogene Ltd. will cooperate to promote the advancement of castor cultivation in Brazil. Castorseed oil is said to have considerable potential as a feedstock for biodiesel and other industrial uses. Currently grown on approximately 100 000 ha, the new research programme aims at large-scale, economically viable and sustainable cultivation in Brazil’s northeast and central regions, where some five million ha are estimated to be suitable for castor cultivation. The cooperation will focus on technologies for controlling castor-specific diseases and on the cultivation of castorseed in rotation with soybean. A key component will the introduction of advanced varieties – adapted to mechanized harvesting and modern agricultural practices."]
[2014,"November","SECTOR DEVELOPMENT INITIATIVES - Pakistan – olive tree:  Pakistan’s Agricultural Research Council will join forces with the private sector in the promotion of olive farming and olive oil marketing. The new partnership will concentrate on following areas:  post harvest losses, timely product delivery, sale strategies, marketing of value added products, quality control and testing facilities."]
[2014,"November","SECTOR DEVELOPMENT INITIATIVES - Canada – rapeseed:  Agricultural policy research at the University of Saskatchewan will receive financial support from Canada’s Canola Growers Association to conduct work in the areas of international trade, transportation, labour, crop innovations and other issues of interest to the industry. The project aims at examining important policy issues and intends to help train future policy makers."]
[2014,"November","SECTOR DEVELOPMENT INITIATIVES - Indonesia – oil palm:  The government, in partnership with UNDP (the United Nations Development Program), has launched the Sustainable Palm Oil Initiative, SPOI, a national platform meant to help small, low-income palm farmers increase their productivity while adopting environmentally sound practices. Reportedly, smallholders manage over 40% of Indonesia’s oil palm plantations. The new programme aims at raising smallholder yields to 5 tonnes of oil per hectare (compared to the current average of 2.5 – 3 tonnes) while abiding by Indonesian Sustainable Palm Oil (ISPO) standards and achieving official ISPO certification. The ultimate objective is to improve the livelihoods of small palm farmers, without causing harm to the environment. Reportedly, the programme targets 4.4 million hectares of oil palm smallholdings (or 44% of the country’s total area under oil palm), involving an estimated 2.2 million farmers."]
[2014,"November","SECTOR DEVELOPMENT INITIATIVES - China – soybean:  Reportedly, this year, the introduction of a new fertilization method resulted in an 8% increase (year-on-year) in soybean yields in Heilongjiang province, China’s main soy growing region. The method, known as rhizobium inoculant technology, is widely used in major soybean producing countries such as USA, Brazil and Argentina. Presently used in only 6% of the country’s total soybean area, the technology is believed to hold great potential in boosting China’s soybean output."]
[2014,"November","SECTOR DEVELOPMENT INITIATIVES - Liberia – oil palm:  The outbreak of the Ebola disease caused a large palm oil firm from Malaysia to postpone construction of a mill for its Liberian plantation, also putting on hold talks to expand its planted acreage, Reuters reported. The company is said to own one of the largest plantations in the country. It signed an agreement with the government to develop about 220 000 ha of land and began planting in 2011. The company said that all workers will continue receiving their salaries and benefits, and that works would resume once the disease were under control."]
[2014,"November","SECTOR DEVELOPMENT INITIATIVES - Nigeria – oil palm:  The federal government has launched a nationwide programme for the distribution of improved oil palm seedlings to both smallholders and estates as well as for the enhancement of wild grove production. The initiative aims at closing the gap between domestic production and consumption of vegetable oils. Based on unofficial estimates, annual consumption amounts to nearly 3 million tonnes, while domestic production is less than 2 million tonnes. After being self sufficient until the mid 1990s, now about one third of Nigeria’s domestic requirements are met by imports. "]
[2014,"November","Pest incidence in EU rapeseed cultivation:  Following the recent ban of specific pesticides to protect bees (see MPPU June ’13), rapeseed farmers in the European Union have reported unusually high levels of insect damage in the recently sown rapeseed crop and expressed concerns that yields could drop markedly in next year’s harvest. The pesticides in question had been identified as being harmful and were linked to past plunges in Europe’s honeybee population. The 2014/15 crop is the first crop to be affected by the ban."]
[2014,"November","Weed control in soybean:  Comparable to similar efforts by Monsanto (see MPPU Sep.’14),  US biotech firm Dow AgroSciences has developed new GM soybean and maize varieties (brand name Enlist) that are resistant to both glyphosate- and 2.4D-based herbicides, a trait that makes the Enlist crops suitable for planting where weeds have become resistant to glyphosate. Wide-spread  use of glyphosate herbicides (such as Roundup) has been blamed for a surge in herbicide-resistant  ‘super weeds’ that farmers are unable to control. Reportedly, the prevalence of such weeds has more than doubled since 2009 and now concerns some 28 million hectares of US farm land. To address this issue, USDA has granted approval of Enlist varieties in September, followed by the US Environmental Protection Agency (EPA) that conferred conditional approval of Enlist-Duo, the herbicide developed by Dow AgroSciences for use with Enlist crops. EPA’s approval has been tied to a number of restrictions meant to address potential environmental and health hazards. In particular, provisions have been put in place to prevent pesticide drift, so as to avoid damage on neighbouring farm fields. Also, to ensure that weeds will not become resistant to 2,4D, EPA has imposed a set of requirements on Dow AgroSciences, including: extensive surveying and reporting to EPA, grower education and remediation plans. Furthermore, the agency’s approval is set to expire in six years (rather than the usual 15 years), so as to allow EPA to revisit the issue of resistance. Initially, the herbicide in question will only be allowed in selected states. EPA will take public comments before approving the product in other states. According to Dow AgroSciences, Enlist seeds could be on the market for the 2015 US planting season. As to the United States’ main trade partners, Enlist seeds and products have already been cleared in Canada, whereas in China, Argentina and Brazil approval has yet to be obtained.  "]
[2014,"November","Seed royalty payments – Brazil:  US seed company Monsanto reported that a base agreement has been reached with key soy exporting firms in Brazil (represented by the national association ABIOVE) to help collecting royalties from farmers that use Monsanto’s new GM soybean variety Intacta-RR2-Pro (see also MPPU Sep.’14). Reportedly, the framework accord succeeded in allaying legal concerns over Monsanto halting shipments on cargoes containing soy for which no royalties had been received. However, the issue of how traders will be compensated for collecting and monitoring seed royalty payments remains to be solved. While ABIOVE expects Monsanto to individually negotiate compensation fees with concerned firms, no concrete offers from Monsanto have been reported yet. The impasse risks to prevent crushing and trading firms from buying Intacta-RR2-Pro  soybeans which are estimated to make up as much one quarter of Brazil’s forthcoming 2014/15 crop."]
[2014,"November","Olive oil marketing - United States:  The state of California, where US olive production is concentrated, is considering to introduce mandatory olive oil testing and certification to ensure product purity and quality (see also MPPU July ’14). With the aim to better inform consumers and to raise the competitiveness of the state’s olive oil industry, the proposed programme envisages the establishment of taste panels and the implementation of strict classification/labelling rules for different olive oil products. As most of the US demand for olive oil is currently met by imports from overseas, mostly from the EU, California’s initiative has attracted criticism from EU producers and US importers alike, which see the measure as unnecessary trade restriction. At present, apart from voluntary certification of extra virgin oil, sales of olive oil are not regulated at federal level."]
[2014,"November","Olive oil marketing - Italy: In line with a recently approved EU directive and following the examples of Spain and Portugal, legislation regulating the quality and transparency in the virgin olive oil chain has been passed in Italy. With regard to labelling, the new law requires clear indication of the origin when oils from more than one EU-state or any non-EU country are mixed. It also forbids to attribute organoleptic properties to oils other than extra virgin and virgin ones. Another important requirement concerns the use of non-refillable bottles in retail outlets and restaurants: virgin oils must be presented in labelled containers, equipped with suitable seals and provided with a system to prevent re-filling.  "]
[2014,"November","Food labelling:  Following complaints by some EU food manufacturers (including edible oil producers), the EU Commission has opened infringement proceedings against the United Kingdom over its voluntary ‘traffic light’ nutritional labelling scheme. Enacted in an effort to fight obesity and help consumers make informed food choices, the scheme has attracted criticism by food manufacturers who claim that it could unduly affect their businesses by giving consumers an over simplistic and biased perception regarding the health properties of certain food products. The UK has been invited to demonstrate that the scheme offers clear, objective and scientifically sound nutritional guidance to consumers and that it does not negatively affect trade."]
[2014,"November","Trade disputes - Indonesia / European Union – fatty alcohols:  Since 2011 the EU is levying anti-dumping duties on certain shipments of fatty alcohols from Indonesia (as well as from India and Malaysia), claiming that these are undercutting European competitors. Fatty alcohols are vegetable oil derivatives (in this case from palm oil) that are widely used in the manufacture of personal care products. Reportedly, after bilateral talks between Indonesia and the EU failed to produce the hoped-for results, Indonesia is now considering to challenge the EU’s action at WTO level. On a related matter, Indonesia could also face a challenge from India, which, according to private sources, is investigating a surge in imports of fatty acids from Indonesia.  "]
[2014,"November","Trade disputes - United States / European Union – biodiesel:  While the European Union is evaluating  whether or not to maintain the anti-dumping/countervailing duties imposed in 2009 on biodiesel imports from the United States (see MPPU Sep.’14), the US biodiesel industry has urged EU policy makers to allow punitive measures to expire this year as originally scheduled. Industry officials cited evidence that global biodiesel trade has changed since the EU imposed its duties and argued that European producers are not only allowed to sell biodiesel in the United States free-of-duty but also to benefit from US domestic policies and support programmes. "]
[2014,"November","Overseas acquisitions:  Reportedly, following China’s new strategy to raise the country’s presence in international grain markets (see MPPU March & May ’14), state-owned agribusiness company Chinatex is negotiating the acquisition of a stake in Fiagril, a company trading and processing grains in Brazil’s  state of Mato Grosso. If confirmed, the transaction is expected to strengthen the trading business between the two countries, notably with regard to soybeans. Since 2011/12, Brazil is China’s top supplier of soybeans, relegating the United States to the second place.       "]
[2014,"November","Biodiesel feedstock jatropha:  A US biotech company informed that it has successfully created a hybrid jatropha characterized by both high yield and rapid time to maturity. The new variety is said to reach maturity in 1-2 years. Reportedly, top yield achieved in trials amount to 2.6 tonnes per hectare in the first year. The company informed that the technology is ready for full-scale commercial deployment of jatropha. Commercial partnerships are envisaged in Central America, India and Southeast Asia. The non-edible oil obtained from jatropha seed is mostly used as feedstock for biodiesel production.         "]
[2014,"November","Production of oleochemicals:  Reportedly, due to falling refining margins for crude palm oil, large palm oil companies in Indonesia are expanding their production capacity of higher-value chemicals made from palm oil. Industry sources estimate that, in 2015, Indonesia will add 0.5 – 1 million tonnes of oleochemical capacity, which would lift the country’s total capacity to 3.5 – 4 million tonnes per year. Malaysia’s capacity is currently estimated at 2.5 million tonnes. Together, the two countries are said to account for nearly half of the global capacity for all basic forms of oleochemicals derived from plant oils and animal fats. Essentially analogous to petroleum-based chemicals, oleochemicals are primarily used as ingredients in detergents, personal care products, biodiesel, lubricants and solvents. "]
[2014,"December","ARGENTINA – credit policy:  Farmers holding onto their soybean harvest (as a hedge against local inflation and currency devaluation - see MPPU Mar. & Nov.’14)  may see their access to production loans curtailed. Reportedly, the state-owned Banco de la Nación has been instructed to make available financing only to growers able to prove that they are not stockpiling soybeans on their farms. Reportedly, the bank finances some 40 percent of the country’s agricultural production and provides loans worth Pesos 300 million (USD 35 milllion) to soy farmers each year. Apparently, the government’s measure is aimed at stimulating soybean exports so as to allow the collection of export taxes to pick up. Industry sources pointed out that out of nearly 13 million tonnes of soybeans currently being held back from the market, farmers are likely to swap 8 million tonnes for seed, fertilizers and other production inputs."]
[2014,"December","AUSTRALIA / CHINA – trade agreement:  The two countries have signed a declaration of intent for a free trade agreement that would remove tariffs across a range of sectors. Regarding agriculture, tariff removals would apply to China’s imports of various grains, dairy and fishery products but not wheat and rapeseed."]
[2014,"December","BRAZIL – soy moratorium: Contrary to previous announcements (see MPPU March ’14), the country’s oilseed/grain associations decided to renew the moratorium on the trading and financing of soybeans grown on illegally cleared land in the Amazon region. Due to expire in December 2014, the moratorium is now poised to remain in place until May 2016, when Brazil’s new Forest Code and farm registration system are expected to become fully operational. Reportedly, the Ministry of Environment has called for the renewal on concerns that illegal deforestation was continuing in the Amazon rainforest. According to satellite imagery, in 2013/14, the area of soybeans grown on illegally deforested land has grown for the first time since 2005. Industry sources pointed out that cattle ranching – rather than soybean cultivation – remains the main driver behind deforestation in the region. Starting January 2015, compliance with the moratorium is going to be monitored through official controls. The moratorium’s extension, which should enhance legal certainty and transparency along the soy production/processing system, has been hailed by customers in Europe, where demand for responsibly produced soy products is reported to be on the rise."]
[2014,"December","BRAZIL – biodiesel tax policy:  With a view to support the development of the country’s relatively young biodiesel sector, the government decided to exempt the sale of vegetal-origin feedstock for biodiesel from paying selected taxes. The tax suspension will apply to both cooperatives producing feedstock and to processors and companies that store and market biodiesel feedstock."]
[2014,"December","CANADA / INDIA – import regulations: The government of Canada has initiated talks with Indian counterparts, seeking permission to import Canadian rapeseed oil as ‘canola oil’. Last August, India’s Food Safety Standards Authority had prohibited the use of any particular brand name, requesting that all imports from Canada be marketed as ‘imported rapeseed-low erucic acid oil’ (see MPPU Sep.’14)."]
[2014,"December","CHINA – GMO policies:  Reportedly, China’s Ministry of Agriculture decided to suspend the import approval process for a new genetically modified soybean variety, citing ‘low public acceptance’ of GMO products. To address the problem of growing consumer sentiment against GMO foods, the Chinese government recently launched a media campaign in support of GM crops. Reportedly, the campaign is meant to educate people about the benefits of GM products, which, in addition to being considered as safe, are seen as potentially key in helping to guarantee the nation’s food security. Despite having invested heavily in domestic GMO research, China has not yet permitted domestic cultivation of any GM crop. Recently, private resources reported that the government could consider removing a long-standing ban on foreign investment into domestic GMO research."]
[2014,"December","CHINA – fishmeal production rules: China’s Shandong Province has issued stringent environmental regulations governing fishmeal production facilities, especially with respect to water treatment. Reportedly, in order to comply with the new requirements fishmeal factories will have to invest in their facilities. Market observers don’t expect the country’s net fishmeal production and imports to change significantly as a result of the measure."]
[2014,"December","EUROPEAN UNION / RUSSIAN FEDERATION – trade dispute:  The EU requested formal consultations with the Russian Federation – as an initial step in the WTO dispute settlement procedure –  in respect of import duties the Russian Federation has charges on selected products, including palm oil. Allegedly, products have been taxed more heavily than agreed when the country joined WTO. In case the consultations prove unsuccessful, the EU may ask the WTO to establish an independent panel that would rule on the case."]
[2014,"December","EUROPEAN UNION – GMO policy: After four years of debate, a provisional political agreement has been reached between EU policy makers on legislation regulating the cultivation of GM crops (see also MPPU July’14). The proposal would give member states the possibility, as from spring 2015, to restrict or prohibit the cultivation of GM crops on their own territory – even if the concerned crop has previously won approval by EU authorities based on scientific risk assessments. The agreement, if confirmed, would meet member states’ consistent calls to have the final say on whether or not GMOs can be cultivated on their own farmland. The competent EU body would continue conducting assessments of new GM products, possibly granting EU-wide cultivation permits. The agreement still requires formal approval by the European Parliament and the EU Council."]
[2014,"December","INDIA – vegetable oil tariff values: The official tariff value for crude palm oil has been lowered to USD 704 per metric tonne (which compares to USD 743 applied since August 2014). Used as reference prices for calculating import levies, tariff values are adjusted periodically to ensure that they reflect changes in international benchmark prices. As far as vegetable oil import duties are concerned, no decision has been taken yet with regard to the calls for higher tariff rates (see MPPU Nov.’14)."]
[2014,"December","INDIA – biodiesel policy:  The government has taken new steps to promote domestic production and consumption of biodiesel (see also MPPU Nov.’14). According to the Railway Ministry, during the 2014-15 budget year, the country’s fleet of locomotives will start using diesel blends containing up to 5% of biodiesel. Reportedly, the railway is India’s single largest bulk consumer of diesel. Furthermore, the Road Transport Ministry, is considering to allow biodiesel producers sell their produce directly to domestic bulk consumers. By means of these two measures, the government hopes to stimulate the use of ‘clean’ and domestically produced fuel while lowering the country’s dependence on diesel. Past efforts to introduce mandatory blending schemes and to regulate biodiesel prices faced various implementation problems. Private sources estimate that currently only 10% of the country’s biodiesel production capacity is being utilized and that about 80% of domestic biodiesel production is being exported due to limited domestic market opportunities."]
[2014,"December","INDONESIA – environmental policies: After the government’s recent decision to develop new regulations on the conservation and management of peatland (see MPPU nov.’14),  the Ministry of Environment has been instructed to review licenses for companies that have converted peatland to establish oil palm plantations. Reportedly, the Ministry will consider revoking permits of plantation concessions that are found to be at fault. Related recent government initiatives include the following: (i) the establishment of reference levels for measuring emissions from deforestation and peatland degradation, (ii) the enforcement of a temporary moratorium on all new logging permits, and (iii) the launch of an ambitious reforestation plan."]
[2014,"December","INDONESIA – variable palm oil export tax: In December, the tax on crude palm oil exports will remain at zero. Last October, the government suspended the tax in an effort to stimulate exports, thereby bringing down domestic stocks and preventing prices from falling (see also MPPU Nov.’14)."]
[2014,"December","ISRAEL – consumer policy:  Reportedly, the government is considering to raise the number of basic foodstuffs subject to price controls. Based on comparisons of domestic and international prices, new price caps could be imposed on, inter alia, rapeseed oil. The initiative aims at bringing the Israeli consumers’ purchasing power in line with that of consumers in other developed countries.        "]
[2014,"December","MALAYSIA – palm oil certification: Official sources confirmed that the country’s voluntary standard and certification scheme for palm oil, MSPO (Malaysian Sustainable Palm Oil), will become operational on 1st January 2015 (see also MPPU Nov. ’14).  Reportedly, an independent body, the Malaysian Palm Oil Certification Council (MPOCC),  has been set up to administer the scheme. No specific time has been provided as to when the scheme would be made mandatory for all local players."]
[2014,"December","MALAYSIA – palm oil export tax and biodiesel policy:  The government confirmed that the tax on crude palm oil exports will remain suspended until the end of the current year. The tax was temporarily lifted last September with a view to stimulate exports and help mitigate the downward trend in prices (see also MPPU Nov.’14). Also biodiesel policies continue to be used to stimulate domestic consumption and stabilize prices:  in the transport sector in Peninsular Malaysia, mandatory blending of diesel with 7% of palm oil methyl ester (referred to as B7) has commenced in November. Once implemented on a national scale and including the industrial sector, the B7 programme is expected to utilize 700 000 tonnes of palm oil per year.      "]
[2014,"December","UNITED STATES – biofuel policies - 2014 blending targets:  The United States’ Environmental Protection Agency informed that it would further postpone and reconsider the mandated levels of renewable motorfuels – including biodiesel – for calendar year 2014 (see also MPPU Dec.’13). Due in late 2013 and eventually postponed to the end of this year, the blending targets for 2014 will now be announced in early 2015, together with the numbers for 2015.\n"]
[2014,"December","UNITED STATES – biofuel policies -  Biodiesel tax credit:  Reportedly, US legislators are considering to further delay the decision about renewing the USD 1 per gallon biodiesel tax credit (which expired at the end of 2013) until the next session of Congress in 2015.   "]
[2014,"December","UNITED STATES – biofuel policies - Federal support:  USD 5.6 million in grants are going to be made available to 220 producers to support the production of ‘advanced biofuel’. Payments will be made based on the amount of biofuel produced from renewable biomass other than maize kernel starch. Eligible feedstock include vegetable oil, animal fat, crop residue and animal, food and yard waste. The funds will be provided through USDA’s Advanced Biofuel Payment Program, which was established under the 2008-Farm Bill and re-authorized in the 2014-Farm Bill. Reportedly, since the programme’s inception, more than USD 280 million have been made available to 350 producers. Most payments went to producers of biodiesel. In addition to the above funding, USDA informed that it will award grants worth more than USD 4 million that will advance the bioeconomy and reduce the nation’s dependence on foreign oil."]
[2014,"December","SECTOR SUPPORT MEASURES - India – sunflowerseed:  The state government of Punjab has launched a comprehensive plan to stimulate cultivation of sunflowerseed and other oilcrops with a view to maximize local edible oil production and thus check the rise in imports. Under the programme, state authorities will extend cooperation and assistance to farmers, promoting in particular the use of certified seed and the adoption of best agricultural practices."]
[2014,"December","SECTOR SUPPORT MEASURES - Pakistan – soybean:  In addition to promoting the cultivation of oil-rich crops, Pakistan’s Agricultural Research Council has initiated work on soybeans with a view to help meet the meal requirements of the country’s rapidly growing poultry and aquaculture sectors. The institute’s efforts will concentrate on the selection of suitable soybean varieties and on raising the farmers’ awareness about the crop’s short maturity duration and its beneficial effects on soil fertility."]
[2014,"December","SECTOR SUPPORT MEASURES - Philippines – coconut:  State funding has been made available to rehabilitate damaged coconut trees in areas affected by typhoon Bopha in late 2012. Assistance will be provided for fertilization and replanting activities."]
[2014,"December","SECTOR SUPPORT MEASURES - Zambia – vegetable oil:  Local producers of edible oil and of vegetable oil-based biodiesel have called for increased government support to their nascent industries so as to be able to compete with producers in neighbouring countries and overseas markets. In particular, producers asked for edible oils to be exempted from VAT as was done for a number of basic or essential products.\n"]
[2014,"December","Futures markets:  Paris-based Euronext announced the launch of futures contracts for rapeseed oil and rapeseed meal to complement the existing rapeseed contract. By covering the full rapeseed complex, the exchange wants to allow users to manage their entire crushing margin from grain to oil to meal. It is also targeting participants in the biofuel market by allowing oil blenders to hedge their exposure to rapeseed oil, the key feedstock for EU biodiesel. Reportedly, the new rapeseed oil and meal contracts will be based on non-genetically modified references."]
[2014,"December","Release of new GM seed:  Reportedly, the general slowdown in China’s GM regulatory process (see above) has affected global seed companies’ plans concerning new product launches. In the United States, seed producers Syngenta AG and Dow AgroSciences have opted for tightly controlled releases of new GM maize and soybean varieties, while Bayer CropScience decided to keep a new soybean variety on hold. Sales will be accompanied by strict planting and use restrictions, whereas new varieties are likely to be released only when farmers and exporters can be assured that harvests will not be rejected by China or other importing nations. Related to this, in the United States, Syngenta AG is facing a growing number of lawsuits by farmers and traders for damages suffered after the rejection of shipments by China. Allegedly, the seed company underestimated the time it would take to obtain China’s approval and failed to properly manage and segregate its GM varieties. Industry sources estimated damages to farmers during the 2013/14 marketing year in excess of USD 1 billion. In general, avoiding accidental shipment of unapproved varieties poses major challenges given  the common practice to mix different varieties during storage and transport. And the lack of approval for a particular GM variety can put at risk of rejection large shipments that consist primarily of approved GM grains."]
[2014,"December","Sustainable palm oil – international collaboration - UN partnership:  The United Nations Environment Programme (UNEP) and the Roundtable on Sustainable Palm Oil (RSPO) have joined forces to promote certified palm oil as part of a broader effort to conserve biodiversity. The two organizations will work together to strengthen standards for certified palm oil and to encourage uptake in global markets. UNEP said that certified palm oil has the potential to make a significant contribution to its efforts on sustainable consumption and production. Currently, RSPO’s globally  recognized certification programme is reported to cover some 11 million tonnes or 18 percent of global palm oil output."]
[2014,"December","Sustainable palm oil – international collaboration - RSPO:  Recently, the global palm oil sustainability/certification body announced that it will suspend or expel member companies that do not comply with the organization’s reporting requirements. Members are expected to report annually on progress made towards time-bound plans to reach specific sustainability targets.     "]
[2014,"December","Sustainable palm oil – international collaboration - POIG:  A group of palm oil companies and environmental/social NGOs has launched the Palm Oil Innovation Group (POIG). The Group’s objective is to find – while building on the principles and criteria of RSPO – innovative ways to (i) halt deforestation and peatland conversion, (ii) respect the rights of local communities, and (iii) achieve greater product traceability along the supply chain. The following consumer goods manufacturers and retailers committed to support the newly formed group: REWE Group, EDEKA, Ferrero, Boulder Brands and Stephenson."]
[2014,"December","Sustainable palm oil – company news - Zero deforestation commitments:  Reportedly, Singapore’s Musim Mas, Malaysia’s Kuala Lumpur Kepong and Dutch firm IOI Loders Croklaan  – three large palm oil producers – have joined the list of companies that committed to zero-deforestation practices. Other producers include Golden-Agri Resources, Wilmar, Cargill and Bunge. IKEA household stores, although relatively small users of palm oil, also committed to sustainable sourcing and zero deforestation and peatland conversion. According to private estimates, about two thirds of the world’s traded palm oil are now bound to zero deforestation commitments. Although relying on RSPO principles for other elements of sustainability, the policies of the listed companies are said to go beyond RSPO standards in that palm oil linked to deforestation (and peatland conversion) will not be considered. Civil society groups insisted that companies concerned adopt time-bound action plans and agree to independent scrutiny of implementation progress."]
[2014,"December","Sustainable palm oil – company news - Sourcing policies:   The following trade, food and consumer goods companies pledged to intensify their efforts in responsible and traceable  sourcing of palm oil, in part detailing time- bound action plans and committing to regular reporting about implementation progress: Bunge, Cargill, Unilever, Hershey Co., Dunkin’ Donuts, and Krispy Kreme. Some firms decided to partner with The Forest Trust, an international NGO that assists companies to develop verification methods that allow evaluation of progress made. "]
[2014,"December","Sustainable soy:  Swedish food retailer Axfood committed to move towards sustainably produced soy. By 2015, all of the soy used in own label products will either come from certified farms or be covered by tradable certificates. When certificates are used, for every tonne of soy traded, soybean growers in Brazil, Argentina and India that comply with the standards of RTRS (Roundtable on Responsible Soy) are going to receive a fixed payment. As a start, Axfood committed to purchase certificates so as to help increase the availability of certified soy. "]
[2014,"December","Biodiesel sales – China:  Global petrol company Shell started selling a 5-percent biodiesel blend product in the country’s Special Administrative Region of Hong Kong. Reportedly, sales are directed to large corporate customers that seek to reduce their environmental footprint. Reportedly, uncertain demand and limited storage capacity are preventing  Shell from introducing biodiesel at its network of retail fuel stations throughout China. Biodiesel demand is said to be minimal due to the absence of mandatory blending requirements and production subsidies. Shell sources its biodiesel form a local producers whose principal feedstock are waste cooking oil and grease trap waste collected from restaurants and caterers. Reportedly, Chinese biodiesel producers face difficulties in sourcing such feedstock locally as the absence of waste oil disposal regulations means that much of the available waste oil is sold at lucrative prices to biodiesel producers abroad. In the meantime, China resorted to importing biodiesel, with total imports tentatively estimated at 800 000 tonnes in 2014."]
[2015,"January","CANADA – transportation policies:  Contrary to earlier reports (see MPPU Nov. ’14), the government has extended until March 2015 the requirement that railways move minimum volumes of grain crops – set between 200 000 and 465 000 tons per week, depending on the period. The measure, first introduced in March 2014, is meant to ensure that grains, rapeseed and other crops reach markets in a timely manner. The country’s two rail networks must present to the government formal contingency plans for the remaining crop year and are expected to regularly submit detailed information on shipments. In general, railways, shippers and producers are expected to work together to ensure effective operations along the supply chain. "]
[2015,"January","CHINA – GM crop approvals:  After several years of review, Chinese authorities have granted official approval for the importation of two GM soybean varieties developed in the United States –  one of China’s key suppliers of soybeans. The approval paves the way for the full commercial launch, in the United States, of DuPont’s high oleic soybean Plenish and Bayer’s soybean variety LL55 said to possess enhanced weed control properties.        "]
[2015,"January","INDIA – copra support price:  The 2015 procurement prices for milling and ball copra have been set at, respectively,  Rs 55 500 (USD 885) and Rs 58 300 (USD 938) per tonne – up 6 percent from last year’s level."]
[2015,"January","INDIA – vegetable oil import policy:  Acknowledging that rising vegetable oil imports have led  to a significant drop in local prices and hurt the refining industry as well as farmers, the government decided to raise by 5 percent India’s import tariff for both crude and refined edible oils. The decision by Indonesia and Malaysia (towards the end of last year) to suspend their palm oil export duties, together with falling international prices, led to a surge in India’s imports, in particular of palm oil products. India’s new import tariffs – fixed at 7.5% and 15% respectively for crude and refined oils – have come into effect on December 25th 2014. The industry had asked for stronger duty increases, especially for refined oils, with a view to enhance the competitiveness of the domestic refining sector."]
[2015,"January","INDONESIA – variable palm oil export tax:  To curtail domestic inventories in a year of record supplies, the government decided to extend the zero duty on crude palm oil exports for a fourth month until end January 2015 (see also MPPU Nov.& Dec.’14)."]
[2015,"January","ISLAMIC REP. OF IRAN – edible oil import policy:  Reportedly, state officials recommended that imports of palm oil be limited to 30 percent of the country’s total annual vegetable oil imports. The proposal was raised after dairy companies were found to be adding palm oil in high-fat milk and yogurt, a practice said to be unbeneficial for public health. Reports about the introduction of a permanent ban on palm oil imports have been dismissed.      "]
[2015,"January","MALAYSIA – palm oil export tax:  According to official sources, the suspension of the country’s tax on crude palm oil exports is to be prolonged through February 2015. The tax was temporarily lifted in September 2014, so as to boost demand and reduce domestic stockpiles. By extending the suspension, the government hopes to lift local palm oil prices which, by December, had dropped to five-year lows.   "]
[2015,"January","PHILIPPINES – coconut sector support - Coconut levy release:  Reportedly, a decision by the Philippines’ Supreme Court has paved the way for the release of funds amounting to Pesos 60 billion (USD 1.34 billion) for the benefit of the country’s 3.5 million coconut farmers. The funds came from a levy collected from coconut farmers during the 1970s. Meant to be spent for sector development measures benefiting producers, the funds were never used for their original purpose. The funds’ sequestration by the government in 1986 opened the way for a lengthy court case. Based on the latest court order, Congress is now expected to pass a bill that mandates the creation of a trust fund for the development and rehabilitation of the coconut industry. Targeting coconut farmers and farm workers, funds are expected to be earmarked for national programmes supporting coconut productivity, rehabilitation and replanting, intercropping, crop protection, agronomic and medical research, integrated downstream processing, and market promotion. Social measures such as health, medical and life insurance schemes as well as educational scholarships will also be proposed."]
[2015,"January","PHILIPPINES – coconut sector support - Coconut production support:  Reportedly, the government has allocated Pesos 1.38 billion (USD 30.9 million) to the country’s Coconut Authority, to enhance the latter’s activities in support of coconut production. The additional funding will be used for, among others, planting and replanting incentives to coconut farmers, distribution of organic fertilizers, capacity-building activities related to intercropping, and pest control programmes. "]
[2015,"January","PHILIPPINES – biodiesel policy:  According to official sources, the government will decide in early 2015 on whether to raise the Philippines’ mandatory biodiesel blend in fuel products. Reportedly, it is waiting for the results of a study conducted by the National Economic and Development Authority. Since 2013, the country’s National Biodiesel Board has recommended to raise mandatory blending from the current rate of 2 percent to 5 percent (see MPPU Aug.’13). Industry groups favour the shift to a higher blending rate as it would create additional demand for the coconut sector. "]
[2015,"January","REPUBLIC OF KOREA – biodiesel policy:  According to industry sources, the government is aiming to raise domestic biodiesel consumption. Reportedly, mandatory blending of transport diesel with biodiesel could be raised from the current 2 percent to 2.5 percent in August 2016, and further to 3 percent in January 2018. In this regard, private sources pointed out that the country’s biofuel industry is now only able to meet 40 percent of domestic requirements. The remaining demand has to be satisfied via imports."]
[2015,"January","UNITED STATES – biodiesel policy:  In December 2014, the government retroactively reinstated the biodiesel tax incentive that had expired back in January 2014. The extension is limited to the 2014 calendar year. Under the policy, fuel producers enjoy a tax credit of 1 USD for every gallon of biodiesel sold. For 2014, thanks to the  reinstatement of the incentive, biodiesel producers are estimated to get back approximately USD 1 million. The industry had asked for the measure to be extended through 2015, arguing that retroactive reinstatements do not give the biodiesel sector the certainty needed to invest and grow. Over the last six years, the tax measures was allowed to expire four times."]
[2015,"January","Palm oil labeling issues:  Reportedly, in the European Union, where specifying vegetable oils on the ingredient list of pre-packaged food products has become mandatory since December 2014 (see also MPPU April ’13), certain food manufacturers and distributors are using the term ‘palm oil-free’ on product labels and advertisements. According to legal experts, such practice could be legally challenged to the extent that implicit reference might be made to the environmental or health credentials of individual vegetable oils. Under applicable and relevant EU law, food information shall not be misleading, e.g. by suggesting that a given food possesses special characteristics thanks to the presence or absence of certain ingredients and/or nutrients. Lawyers warned that ‘palm oil-free’ labeling could be understood as a beneficial nutrition claim, which – when unsupported by objective evidence – would constitute an act of unfair competition  vis-à-vis producers that use palm oil or that do not communicate its absence.  "]
[2015,"January","Heating oil specifications:  Reportedly, the US-based standard-setting organization ASTM International  has revised its standard for fuel oils used for home heating to allow for up to 20% of biodiesel content (up from the 5% specification used since 2008). The decision has been welcomed by the US biodiesel industry.        "]
[2015,"January","Forward trading – India:  Following approval by India’s Forward Markets Commission, the country’s National Commodity & Derivatives Exchange (NCDEX) is preparing the launch of forward trading in 17 additional commodities, including crude palm oil, mustard seed, soybeans, refined soybean oil, and cotton seed oil. The initiative aims to allow market participants to better manage exposure to commodity price volatility. Unlike futures contracts, which are guaranteed by clearing houses and use standardized specifications, forward contracts are private agreements that allow buyers and sellers the flexibility to trade under diversified terms and conditions. "]
[2015,"February","BRAZIL – infrastructure policies -  Highway BR-163:  Government officials informed that paving of the highway that  connects Mato Grosso (one of Brazil’s main soybean growing states) to ports in the Amazon basin will only be completed in 2016 – contrary to last year’s announcement that works would be accomplished by mid 2015. Reportedly, the delay is due to difficulties encountered in obtaining the required environmental permits in the state of Pará, much of which is covered by tropical rainforest. The envisaged infrastructural improvement is urgently needed to relieve the country’s busy ports in the Southeast. Last year, counting on the new overland connection, grain trading firms started to invest in new shipping terminals along the Amazon river (see MPPU Feb. & May ’14). According to official sources, to facilitate the transit of trucks, gravel will be placed on the highway pending the road’s paving."]
[2015,"February","BRAZIL – infrastructure policies - Tietê–Paraná waterway:  Used to ship grains from southern and central-western states to ports in the Southeast (as well as to generate electricity), the waterway will not be reopened – as originally planned – in time for the start of the soy exporting season, reported official sources. The 2 400 km waterway had to be closed in May last year following prolonged drought. Recent rainfalls have not been sufficient to raise the waterway’s draft sufficiently for barges to pass. Back in 2011, public funding had been granted to more than double the waterway’s capacity within the year 2017."]
[2015,"February","BRAZIL – infrastructure policies -  Santos port:  Reportedly, the government plans to automate a truck scheduling system that last year has helped ease road congestions around Santos, one of Brazil’s main grain shipping hubs in the Southeast."]
[2015,"February","CANADA – product news -  Camelina meal:  In recent years, camelina sativa, an oilseed belonging to the brassica family, started attracting interest in Canada and the United States due to the suitability of its oil for a variety of industrial uses, including as feedstock in the production of road and aviation biofuel. Now, Canada’s Food Inspection Agency (CFIA) has also approved feeding of cold-pressed non-solvent extracted camelina meal to broiler chicken at up to 12 percent inclusion. Owing to its high concentration of Omega-3 oils, the meal is viewed as a valuable source for high quality feed. The approval process for feeding to laying hens has also been initiated."]
[2015,"February","CANADA – product news -  Rapeseed disease:  Canada’s Food Inspection Agency (CFIA) confirmed the presence of verticillium longisporum at a farm research station in Manitoba. Apparently, this is the first time the disease has been detected in North America. Reportedly, the soil-borne fungus, which invades rapeseed and other plants, has caused considerable damage to rapeseed crops in Europe, notably in Sweden. Existing fungicides are said to be ineffective against the disease and none of the current rapeseed varieties is resistant. Reportedly, CFIA has taken action to prevent the disease from spreading beyond its current location. The agency is also trying to determine when the pest has arrived and if it spread prior to detection. Canadian farmers will receive advice on how to identify the disease in the fields.             \n"]
[2015,"February","CHINA – public stock policies -  Rapeseed oil state reserves:  State agencies have been instructed to offer 6 500 tonnes\nof rapeseed oil from state reserves. The volume is remarkably small compared to the estimated 6 million tonnes currently held in public warehouses and taking into account policy efforts to cut down centralized public stocks in general. The last state auction of rapeseed oil, in early 2013, proved to be unpopular due to both high bidding prices and the poor quality of some of the reserves.\n"]
[2015,"February","CHINA – public stock policies -  State versus provincial reserves:  Reportedly, in future, the task of stimulating local production and maintaining appropriate reserves of grains and edible oils will fall primarily on provincial governments. When assuming these tasks, local governments will likely be faced with growing water and land constraints and mounting food security challenges."]
[2015,"February","CHINA – economic policy: Reportedly, China’s Central Bank is ready to raise its re-lending operations by Yuan 50 billion (USD 8 billion) to provide targeted support to small businesses and to the farming community, i.e. sectors banks are often reluctant to supply with credit. Apparently, the initiative is meant to help stem the current slowdown in China’s economic growth. Private sources expressed doubts about the effectiveness of increased lending targets, pointing out that, without access to land titles, farmers continue to be unable to secure bank loans."]
[2015,"February","EUROPEAN UNION – GMO policy: As anticipated, the EU Parliament has backed the  GMO opt-out for EU member states (see MPPU Dec.’14). For the new policy to come into effect, formal ratification by national governments remains pending. Under the new rules, member states would be allowed to restrict or ban the cultivation of GM crops on their own territory on various grounds, including environmental policy grounds other than risks to health and the environment, which would remain the domain of the European Food Safety Authority. Individual member states thus would be allowed to ban GM crops even if these have been declared safe at EU level. Bans could be extended to groups of GMOs designated by crop or trait. The new rule would only apply to crops, i.e. it would not cover GM used in animal feed, which would continue to enter the food chain. Member states would have to ensure that GM crops do not contaminate other products, including the prevention of cross-border contamination."]
[2015,"February","EUROPEAN UNION – biofuel policy: In France, the maximum level of biodiesel permitted in transportation fuel has been raised from 7 to 8 percent. The measure puts France’s admixture rate above the EU-agreed limit of 7 percent – a development that has raised fears of fragmentation of the EU’s single fuel market. French government officials presented the initiative as a technical adjustment to permit petrol companies meet existing national targets. In France, the primary feedstock for biodiesel production is rapeseed oil of domestic origin.            "]
[2015,"February","INDIA – biodiesel policy:  Government officials confirmed that private manufacturers of biodiesel will be allowed to sell their fuel directly to end-users, especially bulk consumers such as rail companies (see MPPU Dec. ’14). Until now, biodiesel retailing had been subject to the same rules that apply to sales of mineral oil fuels, i.e. only state-owned companies and private firms with large infrastructure assets were allowed to retail. Reportedly, the above amendment has been introduced because users were facing problems in sourcing biodiesel. By de-regulating the market the government hopes to encourage the production and use of biodiesel in the country."]
[2015,"February"," INDIA – import policy:  In August 2014, the country’s Food Safety and Standards Authority (FSSAI) had prohibited importers of rapeseed oil from marketing their product as ‘canola oil’ (see MPPU Sep.’14). Traders opposed this measure and went to court. Finally, last month, India’s  Supreme Court ruled that FSSAI had no case for mandatory re-labeling of imported rapeseed oil. The industry will be free to market rapeseed oil as ‘canola oil’ and imports will no longer be restricted."]
[2015,"February","INDONESIA – trade policy: From April 2015 onward, all commodity exporters – including exporters of palm and palmkernel oil – will be required to use letters of credit for overseas shipments. Reportedly, the use of this instrument has been made mandatory to allow Indonesia’s central bank to gather accurate records of foreign exchange flows."]
[2015,"February","INDONESIA – environmental policy:  Reportedly, the government is considering to revise its recently released rules on the conservation and management of peatland (see MPPU Nov. ’14). Scheduled to come into effect in May 2015, the proposed measures attracted strong criticism from the plantation sector, notably the wood-based  and oil palm industries, which claimed that the new rules would severely hurt their businesses. Reportedly, to comply with the new requirements on minimum water levels in peatland, a large part of the country’s peatland would require rehabilitation. Industry sources estimated that some 1.7 million ha of oil palm plantations on peatland would be affected by the new provisions. To address the industry’s concerns, government officials informed that the continuity of existing commercial permits would be guaranteed, with priority given to plantation companies that fulfill the necessary environmental requirements. However, the issuance of new permits involving peatland conversion would be stopped."]
[2015,"February","PAKISTAN – import policy:  Official sources informed that 78 items – mostly food products – have been added to the list of items that must meet Pakistan’s quality standards at the import stage. All major edible oils, whether in crude or refined form, fall under the new rule. Import clearances will be subject to the presentation of specific certificates issued by Pakistan’s Standards and Quality Control Authority."]
[2015,"February","THAILAND – market control:  In Thailand, recent weather-related drops in palm oil output have resulted in supply shortages of the country’s most widely consumed edible oil. According to official sources, in December, domestic palm oil inventories dropped to 60 000 – 70 000 tonnes, i.e. well below the ‘safety level’ of 200 000 tonnes. To stimulate sales by oil manufacturers, the government has approved a four-Baht increase in retail prices, assuring consumers that prices would not be allowed to exceed Baht 42 per liter (USD 1.29). As a temporary emergency measure, the government also authorized state imports of 50 000 tonnes of palm oil for immediate release on domestic food markets. It also ordered to reduce the proportion of palm-based biodiesel in transportation fuel from 7 percent to 3.5 percent. In past years, the government resorted to similar interventions to address temporary cooking oil shortages."]
[2015,"February","UNITED SATES – biodiesel policy: The Environmental Protection Agency (EPA), i.e. the body that administers the country’s Renewable Fuels Standard scheme (RFS), has approved a policy change that could stimulate exports of biodiesel from Argentina to the United States. The EPA accepted a request by the Argentine biodiesel industry to apply an alternative tracking method to prove that soy used to produce biodiesel was not grown on deforested land. By meeting this requirement, Argentine biodiesel qualifies to take part in the United States’ RFS programme. EPA’s decision attracted  criticism from the U.S. biodiesel industry, which claims that Argentina’s new tracking system would be far less stringent than the current requirement and more difficult to verify. Market observers said that fresh biodiesel imports would intensify competition with local producers and pressure U.S. biofuel prices."]
[2015,"February","UNITED STATES – export policy: Following recent direct presidential action, a number of U.S. economic sanctions against Cuba are set to be loosened. Agricultural exports to Cuba will, however, remain subject to the congressionally controlled trade embargo. Even though the shipment of agricultural goods has de facto been liberalized since 2000, exports remained subject to cumbersome rules and restrictions, including the requirement that Cuban importers pay cash on purchase or delivery – a rule that has affected the competitiveness of U.S. agricultural exports, including shipments of soybean and soybean meal. Therefore, U.S. agricultural interest groups renewed their calls on Congress to lift the trade embargo and all related restrictions, so as to allow exporters to gain back market share from overseas competitors."]
[2015,"February","Sector development news - Argentina – high-oleic oilseed varieties:  According to private sources, the cultivation of high-oleic groundnut and sunflowerseed varieties is advancing in Argentina. High-oleic varieties are increasingly valued by farmers, food manufacturers/retailers and consumers alike –  thanks to their disease tolerance and to the extended shelf life and wholesome health profile of the respective oils (see also MPPU June ’13). Also, high-oleic oils can command significant price premiums over conventional oils. Recently, private sources reported that the average FOB export prices for high-oleic sunflower oil stood at USD 1 400 per tonne, which compared to USD 850 per tonne of conventional sunflower oil. The main customers for Argentina’s high-oleic oils are located in Europe, North America and Asia.\n"]
[2015,"February","Sector development news - Cameroon – oil palm:  New government plans aim at increasing the country’s palm oil output by 26 percent over the coming three years. To achieve this target, 10 000 ha would be planted each year using high-yielding seedlings provided by Cameroon’s Institute of Agricultural Research for Development (IRAD). IRAD will receive public funding to increase its seed production capacity, and seedlings will be distributed for free to farmers. Currently, the country’s area under oil palm is estimated at 160 000 ha. Annual palm oil output is reported at 230 000 tonnes, whereas domestic consumption is estimated at 325 000 tonnes per year."]
[2015,"February","Sector development news - Canada – rapeseed:  Can$ 9.5 million (USD 7.6 million) of federal funding has been allocated to the Canola Council of Canada under the government’s AgriMarket Program. The new funds will support market entry and development activities aimed at increasing the consumption and value of rapeseed in domestic and overseas markets. Reportedly, this will be achieved through market research, promotion of partnerships, attending trade shows and developing recipes for rapeseed-based meals."]
[2015,"February","Sector development news - Canada – soybean:  In Manitoba, state and federal funding has been allocated for research to support the growth and sustainability of the province’s soybean sector. The research projects selected for public funding focus on (i) how fertilization, soil temperature and crop residues affect soybean emergence; (ii) effective pest control methods; and (iii) organic production. Public funding is expected to be complemented by industry funds.\n"]
[2015,"February","Sector development news - Tanzania – soybean: Reportedly, the country’s soybean crushers are increasingly affected by lack of raw materials. Official sources informed that, to support crushers, the government is in the process of securing 3 000 ha of land in the country’s Eastern Province for soybean farming. The government’s objective is to improve production and the supply chain as a whole by enhancing linkages between farmers and processors. Reportedly, key challenges that need to be addressed include land fragmentation, limited use of fertilizers, and low adoption of consolidated farming practices."]
[2015,"February","Research and development news -  GM soy variety:  Monsanto’s  GMO soybean variety ‘Roundup-Ready Xtend’ has been granted ‘non-regulated’ status by the United States’ Animal and Plant Health Inspection Service (see also MPPU Sep.’14). The herbicide designed to be used together with the crop is still waiting for clearance by the U.S. Environmental Protection Agency. Approval from China’s authorities to import the new variety also remains outstanding. Monsanto expects to obtain the latter in time for a commercial launch in 2016. Meanwhile, civil society groups warned that, over the long term, reliance on Monsanto’s ‘Xtend’ system could lead to new weed resistance problems. Furthermore, increased herbicide use could pose risks for human health and cause environmental pollution.   \n"]
[2015,"February","Research and development news -  Soybean salt tolerance:  Reportedly, researchers from Australia and China jointly  identified a gene responsible for salt tolerance in soybean. With the size of salt-affected agricultural land expanding rapidly world-wide, breeding for improved salt tolerance (via genetic markers) is gaining importance, said the researchers. Most commercial soybean varieties used today are sensitive to soil salinity."]
[2015,"February","Research and development news - Microbial soil improvement: Field trials with naturally occurring micro-organisms have the potential to improve soil health and raise average yield levels in maize and soybeans, according to research conducted jointly by Monsanto and Novozyme. Preliminary findings emerging after a first full year of trials with the 10 most promising microbes suggest that microbial technologies can be used to replace or complement traditional fertilizers."]
[2015,"February","Soybean certification:  Like other sectors, the soy industry world-wide is facing sustainability challenges which are likely to intensify as production continues to expand. As public concerns about the environmental and social impact of soy production are on the rise, the need to secure responsible supplies can be expected to grow (see MPPU Mar./May/Dec.’14). Product certification has the potential to address some of these concerns. Currently, the main organizations involved in soybean certification are: RTRS (Roundtable on Responsible Soy), ProTerra Foundation,  ISCC (International Sustainability & Carbon Certification), and 2BSvs (Biomass, Biofuels, Sustainability voluntary scheme). The first two schemes occupy a dominant position. RTRS has reported sales of 1.3 million tonnes of certified sustainable soy in 2014 – almost 50 percent above 2013 but falling short of original targets. Reportedly, the number of countries offering RTRS certified soybean has grown to eight, with Canada and China as latest additions, while Brazil and Argentina continue to account for the bulk of certification. With regard to buyers, in 2014, The Netherlands and Scandinavia have been the largest customers, although sales into upcoming markets such as India and China have also been recorded. ProTerra reported certification of 2.8 million tonnes of sustainably produced soy in 2014, of which about 95 percent originated in Brazil. Sales were concentrated in Europe. A study on soy certification conducted by private firm KPMG estimated that, in 2013, around 2–3 percent of global soybean production was certified – compared to about 14 percent in the case of palm oil. The study further calculated that, in the case of Brazil and Argentina, the average pay-back period for soy producers’ investment in certification is only 3 years (1 year for large producers and up to 5 years for less-advanced, medium-size producers). These calculations were based on a price premium for certified soy of USD 1,50 per tonne. The paper identified the following barriers hampering growth in soy certification: (i) weak market demand for certified soy; (ii) variable supplies of certified soy; (iii) the co-existence of several certification schemes; and (iv) the cost of certification for farmers, notably smaller ones. To foster certification, the following key actions – across the soy value chain – have been  recommended: (a) increased commitment to certification by end-users, notably food manufacturers and retailers; (b) greater collaboration between existing certification bodies; and (c) financial support from soy processors to help farmers meet the up-front costs of certification. Furthermore, governments could consider providing financial incentives for certification, while banks could ask for  compliance with sustainability requirements when lending to farmers."]
[2015,"March","ARGENTINA – market control:  Formal reporting requirements on grain transactions between farmers and buyers are to be tightened, notably for soybeans and maize. In particular, the sale of soybeans kept in silo-bags – a new means of on-farm storage used by farmers as a hedge against high domestic inflation – will have to be reported. The move would follow other measures that aimed at stimulating the release of soybeans into the market (see MPPU Dec. ’14). Based on government estimates, in February (i.e. towards the end of the 2013-14 marketing season), about 10 million tonnes or some 18 percent or of last year’s soybean harvest were still in the hands of farmers – a situation that has strong negative repercussions on government tax revenues.     "]
[2015,"March","CANADA – internal trade:  Canada’s Saskatchewan Province has won a dispute against the government of Quebec Province concerning trade in vegetable oil-based dairy substitutes (see also MPPU June ’14). On 25 February, an appeal panel issued a final ruling that requires Quebec to abandon labelling laws which prohibit using the terms ‘milk’, ‘butter’, and ‘cheese’ for dairy substitute products. The decision may foster a greater use of rapeseed and soybean (grown in Saskatchewan) in margarines, non-dairy coffee creamers and dessert toppings sold in Quebec.          "]
[2015,"March","CHINA – rapeseed oil state auction:  Out of 5 500 tonnes of rapeoil from state reserves offered in January 2015, only 2 600 tonnes have been sold, at prices varying between CNY 5 800 and 5 850 (USD 926 and 935)(see also MPPU Feb.’15)."]
[2015,"March","CHINA – biodiesel policy:  China’s National Energy Administration published new policy guidelines for the development of the country’s biodiesel industry. The guidelines’ overall objective is to promote biodiesel use while protecting local resources. Reportedly, priority will be given to areas with the greatest air pollution problems. Attention is also given to the implementation of enhanced market regulations and to sustainable raw material supply systems. Apparently, waste and non-edible products (such as wood- and grass-biomass) will be favoured over edible vegetable oils for use as feedstock. The new policy also focuses on (i) encouraging engine manufacturers to develop improved diesel motors for biodiesel usage, (ii) promoting corporate social responsibility, and (iii) improving recycling laws.  New industry standards, including restrictions on energy and  freshwater use and on waste disposal, are expected to lower the environmental impact of biodiesel production. Furthermore, biodiesel producers will enjoy tax advantages, and foreign investments into China’s biodiesel industry will be encouraged. Interestingly, the government does not envisage to use mandatory blending requirements and direct production subsidies to strengthen the biodiesel sector. Reportedly, industry representatives raised questions about the implementation of the new guidelines at the local level. They expressed concern that provincial administrations could continue to lack clear targets and the required authority and stated that biodiesel producers would likely continue to suffer from feedstock shortage."]
[2015,"March","EUROPEAN UNION / RUSSION FEDERATION – trade dispute:  Following the failure of  bilateral consultations over Russia’s import duties on selected products including palm oil (see MPPU Dec.’14), the European Commission requested the establishment of a WTO dispute settlement panel. According to the EU, the minimum tariff amount Russia charges on its palm oil imports can be higher than the WTO-agreed duty expressed as a percentage of the product’s value.    "]
[2015,"March","INDIA – vegetable oil export policy:  The government decided to reduce the minimum export price for packaged and branded edible oil from USD 1 100 to USD 900 per tonne. Shipments of branded consumer packs of up to 5 kg were liberalized in 2013 – subject to minimum export prices (see also MPPU May’14).  India’s ban on bulk exports of vegetable oil remains in place.    "]
[2015,"March","INDONESIA – biodiesel policy: The government decided to change the method for setting the domestic retail price for biodiesel:  starting in March 2015, pump prices will be determined based on the prevailing price of crude palm oil (plus processing costs and a 3 percent margin) rather than on the Singapore-based price for conventional diesel. Furthermore, biodiesel producers have been granted an almost threefold increase in state production subsidies, which passed from the IDR 1 400 (USD 0.11) per litre of biodiesel produced, paid until the end of 2014, to IDR 4 000 (USD 0.30) per litre. The annual volume of subsidized biodiesel has been set at 1.5 million tonnes, with government outlays to be financed from funds previously used to subsidize mineral fuel sales. The new method to set biofuel retail prices and the increase in producer subsidies are both aimed at stimulating domestic biodiesel production and guaranteeing its profitability amid falling international crude oil prices. Reportedly, the slump in crude oil quotations recorded since June 2014 has compromised the economic viability of the domestic biodiesel sector. "]
[2015,"March","MALAYSIA – palm oil export tax:  After announcing that taxation of palm oil exports would resume after February 2015, the government informed that the tax exemption would remain in place in March 2015. In line with the variable export tax regime introduced two years ago, the current reference price for palm oil (MYR 2 233 or USD 602 per tonne) justifies the tax suspension; for the tax to be reactivated, the reference price would need to rise beyond MYR 2 250 (USD 607). In place since September 2014, the current duty exemption is said to have been instrumental in stimulating export demand and reducing domestic supplies, thus lending support to domestic palm oil prices.       "]
[2015,"March","REPUBLIC OF KOREA – import policy:  Reportedly, the government of the Republic of Korea announced revisions to the tariff schedule for 2015 with a view to stabilizing domestic consumer prices of certain agricultural products. The changes include the introduction of voluntary tariff-rate quotas for soybeans, animal or vegetable fat for animal feed, soybean oilcake for feed and oilcake of cottonseed. Within-quota purchases will be exempt from import tariffs. "]
[2015,"March","UKRAINE – import policy:  Effective end February 2015 and until the end of the year, all agricultural and food product imports into Ukraine will be subject to a temporary duty surcharge of 10 percent,  regardless of the country of origin and of treaties signed by Ukraine. The measure is meant to contribute to the stabilization of the nation’s balance of payment and is therefore deemed to be in compliance with the provisions of the General Agreement on Tariffs and Trade (GATT).    "]
[2015,"March","UNITED STATES – state biodiesel policy: In the State of Iowa, a new law raises taxes on diesel sales by USD 0.10 per gallon, but also provides for a USD 0.03 per gallon break for fuel blends containing at least 11 percent of soy-based biodiesel. The local biodiesel industry has welcomed the measure, saying that it will spur usage of biodiesel in the state. At federal level, the tax credit for biodiesel in place since 2004 was allowed to expire at the end of 2014 (see MPPU Jan.’15)."]
[2015,"March","UNITED STATES – agricultural policy outlays:  According to USDA, with lower crop prices over the next several years, direct government payments to U.S. farmers could rise in 2015 and remain high in 2016 and 2017, mostly reflecting growing outlays under the Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) programmes. Beyond 2017, direct government payments are projected to decrease again and should fall below the average of 2001-10. "]
[2015,"March","GMO policy – India:  The introduction of GMOs has always been controversial in India.  Since the approval, in the early 2000s, of GM cotton – the only GM crop grown commercially in the country – no new GM events have been authorized. Reportedly, GMO supporters have argued that GM crops will be critical for raising poor farm productivity in India. But civil society groups expressed concern about (i) potentially unknown effects on biodiversity and on human health, and (ii) the longer-term prospect of heavy farmer reliance on patented seeds. They also called for flaws in the regulatory system to be addressed before allowing field trials so as to avert contamination with untested GM materials. Interestingly, last year the federal government began approving a number of GM field trials, conditional to applicants obtaining no-objection certificates from the states where the trials were to be conducted. According to press reports, field trials with GM mustard seed are now in their final stage at the state-run Indian Agricultural Research Institute. Scientists associated with the project said that clearance for commercial release could come within the next two years."]
[2015,"March","GMO policy – China:  According to official sources, the Chinese government is committed to step up domestic research on GM crops, while at the same time improving regulatory mechanisms and educating the public so as to address specific risks and safety concerns (see also MPPU Dec. ’14). According to some government officials, China’s large population and scarce arable land impose environmental and resource-related challenges, which mean that the country cannot afford to lag behind in GM research. In this regard, China is said to be well placed to take the lead in global research on GM rice and maize. Reportedly, the government will give special attention to setting up legal, technological and administrative mechanisms to regulate all aspects of genetic modification – from research to testing, production, processing, marketing and trade. Currently, China only allows the commercial production of two GM products, cotton and papaya. Commercial cultivation of any GM staple food remains prohibited. At the same time, in recent years, the country’s reliance on imports of a number of GM crops – especially soybeans – has increased sharply. "]
[2015,"March","Sector development measures –  Kenya – coconut:  A new body, the Nuts and Oilcrops Directorate has been established within  Kenya’s Agriculture, Fisheries and Food Authority to oversee the development of the coconut industry in coastal regions. Reportedly, the sector is suffering due to a large population of non-productive palms as well as pests, diseases and climate change. The new directorate has been tasked with bringing together farmers, processors, traders and financial institutions to coordinate the industry’s rehabilitation."]
[2015,"March","Sector development measures –  International market information – coconut:  In February, the ministerial meeting of the Asian and Pacific Coconut Community (APCC) discussed a proposal to set up an international market information centre for coconut in Kochi, India. The centre would focus on production and marketing, with a view to improve price discovery mechanisms for the key coconut products. Currently, producers are said to depend strongly on buyers’ markets in Northern Europe. The proposed centre would promote trade in coconut products and facilitate discussion about easing trade barriers. Producers in APCC member countries would be provided with enhanced marketing tools and benefit from improved pricing for value added products. The proposal still requires formal APCC approval."]
[2015,"March","Sector development measures –  Soy food processing – Africa:  Successful introduction in Ghana of a small-scale, simple technology to produce soya milk and tofu from soybeans has been reported. A USAID funded programme promoted the installation of so-called soya cow machines in the selected regions. Apparently, women in particular have shown interest in the technology, which is said to be labour-saving and more hygienic than traditional extraction practices. Reportedly, the technology’s introduction helped raise the incomes of concerned soybean farmers and soyfood producers."]
[2015,"March","Biodiesel standards – Aviation fuel:  The US-based standard setting organization ASTM revised its international aviation turbine fuel standard to adapt to the growing use of biodiesel (or fatty acid methyl esters, FAME) in jet fuels throughout the world.  In the past, the requirement was to maintain FAME presence in jet fuel at an undetectable level – a practice that, due to the spread of biofuels, started to entail high costs. ASTM’s revised standard increases the allowable presence of FAME from 5 to 50 parts per million (ppm). Considering that no discernible negative impacts on jet fuel quality have been observed with up to 400 ppm, industry officials mentioned a potential future revision of the standard to bring the permitted level to 100 ppm."]
[2015,"March","Biodiesel standards – Coconut oil-based biodiesel:  Reportedly, a private research institute in India developed a process for standardizing the production of coconut methyl ester (CME) from coconut oil. The research comprised optimization of CME production, studies of its physico-chemical properties, and testing its efficiency as a fuel in diesel automobile engines. Reportedly, concerned departments at central government level have expressed interest to fund further research in this field.  "]
[2015,"March","Certified sustainable and traceable palm oil – The following initiatives seem to suggest rising awareness of environmental and social sustainability issues among private firms involved in palm oil trade – Ferrero:  The confectionary group informed that, as of January 2015, its products are produced exclusively with palm oil that is both 100 % certified as sustainable and segregated – i.e. fully traceable to known sources. Reportedly, the company has achieved this goal one year ahead of its original target. – Unilever:  The global consumer good company announced that 58 % of its global palm oil consumption is now traceable to known sources. With regard to its EU food business, the firm renewed its pledge to use exclusively sustainable and traceable palm oil. –  Wilmar International:  Reportedly, the global palm oil processing and trading firm committed to make its palm oil supply chain transparent via an on-line platform, thereby opening its sourcing practices to public scrutiny. On-line maps will show where its refineries are located in Indonesia and Malaysia and will include a traceability summary for each site. Reportedly, the platform is to include a mechanism to report improper activities, and all grievances, progress and findings will be made public. The initiative reflects the firm’s commitment to stop purchasing palm oil from suppliers whose product is grown on deforested land or through socially unsustainable practices.   "]
[2015,"March","Varietal developments – Non-GMO soybean:  Reportedly, a non-genetically modified soybean developed by scientists at the University of Arkansas (United States) stands out for its high yield and elevated protein content. The new variety yielded 3.95 tonnes per ha on average in field trials, which compares to standard yields of around 2.9 tonnes (in the state of Arkansas). Bean protein levels at maturity were reported to exceed 45 percent, while the protein content in meal was reported at 52 percent; the respective values for conventional soybean varieties are around 36 percent and 44 percent. Livestock producers, especially poultry companies, have expressed interest in the new variety because of its potential to offer higher nutrition value per weight in animal feed.  University officials informed that the new variety will cost substantially less than most GM-soybean varieties. The new seed material will be released to private companies though license agreements for multiplication and commercialization."]
[2015,"March","Varietal developments – GM-soybean:  Bayer CropScience announced the commercial launch of a dozen new GM soybean varieties.  Allegedly, the new cultivars will help growers maximize performance while combating weed resistance to herbicides of the glyphosate family (see MPPU Sep.’14 on the emergence of so-called super weeds). The new varieties, which will be available for the 2015 growing season, are tailored for specific growing areas in the United States."]
[2015,"March","Varietal developments – Spanish groundnut:  A new genetically modified groundnut variety belonging to the Spanish market type has been released by USDA and partnering universities. Reportedly, the new variety’s key characteristics are high productivity, disease resistance, and – thanks to elevated levels of oleic acid – longer shelf life and beneficial effects on human health. The new cultivar has been developed to suit the needs of farmers in the United States’ South-west. The new variety is being released for multiplication purposes before being made available for commercial use."]
[2015,"March","International land deal:  Reportedly, in Uganda, an international joint venture is set to be taken to court as farmers seek compensation for land ceded in 2011. An environmental group backing the concerned farmers claims that the oil palm project in question displaced local communities without proper compensation. Furthermore, the project is said to have increased food insecurity, spoiled local water sources and caused large-scale deforestation."]
[2015,"March","Port infrastructure – Brazil:  Reportedly, at Tegram, a newly opened grain terminal in Brazil’s north-eastern state of Maranhão, a first load of soybean is ready for vessel loading. Completion of the new terminal – originally scheduled for 2014 – was eagerly expected: along with other port infrastructure projects in the North-East, the new terminal is expected to relieve the burden on the country’s highly congested ports on the southern-eastern and southern coast (see also MPPU Feb.’15, May’14 and June’13).  During 2015, Tegram operators expect to ship some 2 million tonnes of soybeans and maize grown in north-eastern and central Brazil. The terminal’s total capacity should climb to 5 million tonnes over the next 2–3 years, with an additional 5 million tonnes envisaged in a subsequent phase.   "]
[2015,"April","ARGENTINA – agricultural policy:  The government decided to set up a fund worth ARS 2.5 billion (USD 283 million) for the specific support of small and medium-size grain and oilseed producers, i.e. those with a total annual production capacity of less than 700 tonnes. Funded by existing taxes on the exports of large farms, the measure is meant to relieve the problems afflicting small farms, caused mainly by the continuous drop in international prices that started in 2013. Reportedly, the new fund, which is expected to be in place in April, will allow to reduce the export tax burden faced by small/medium producers by up to fifty percent. The around 46 000 farms qualifying for the support represent some 70 percent of all farms but only account for 12 percent of the country’s total output of grains and oilseeds, pointing to an skewed distribution of land and revenues in the sector."]
[2015,"April","CANADA – transportation policies:  The requirement that railway companies move minimum volumes of grains ended in March 28th (see also MPPU Jan.’15). The government decided not to extend the measure introduced one year ago to ensure that the record 2013 harvest reached markets in a timely manner. Reportedly, the government’s intervention has had its intended effect: grains and oilseeds were reported to have moved more smoothly during the 2014/15 marketing season, and carry-overs from the 2014 harvest are projected at about average levels. However, government officials informed that mandatory shipping volumes might be reintroduced in future if warranted. Reportedly, railway representatives welcomed the government’s decision, underlining that the trade would benefit from a stable regulatory environment and free commercial relationships.         "]
[2015,"April","EUROPEAN UNION – GMO policy:  After passing the EU Parliament in January, new rules allowing member states to either restrict or ban GMO cultivation in their own territory have been formally adopted by the EU Council in March and are expected to come into force soon (see  MPPU Feb.’15). Under the new policy, issues related to the importation and marketing of GMOs within the EU will continue to be regulated at union level, while cultivation issues are  expected to become the domain of individual member countries. Meanwhile, EU officials informed that the Commission intends to work on a reform of the GMO authorization process at EU-level.   "]
[2015,"April","INDIA – biodiesel policy:  The central government confirmed that producers, suppliers and authorized dealers of biodiesel will be allowed to sell their product directly to all types of domestic consumers (see also MPPU Dec.’14). Until now, biodiesel manufacturers were required to sell their production at a uniform price to designated oil marketing companies for distribution to end consumers. By liberalizing trade, the government hopes to foster the production and usage of biodiesel in the country. All national biodiesel sales will be required  to comply with the prescribed quality standards."]
[2015,"April","INDIA – oilseeds procurement:  In India, public procurement and sale of oilseeds – a government programme aimed at stabilizing domestic prices and protecting farmers’ incomes – is managed by the National Agricultural Cooperative Marketing Federation (NAFED). Reportedly, important losses have been incurred in NAFED’s operations last year. During fiscal year 2013-14, some 383 000 tonnes of oilseeds were procured, while sales did not exceed 82 000 tonnes. The unsold stocks are said to have triggered large inventory carrying costs. In volume terms, the most important item procured by NAFED is groundnut, followed by copra; purchases of mustard, soybean and sunflower seed are relatively small. Procurement operations are effected when market prices drop below the government set minimum prices (see MPPU July & Nov.’14).         "]
[2015,"April","INDONESIA – palm oil export tax:  In Indonesia, export taxes are traditionally higher for crude palm oil than for refined palm oil – a policy aimed at promoting value addition in the downstream sector. Since 2007 crude palm oil exports are subject to a variable tax regime, whereby export taxation kicks in when the reference market price for crude palm oil rises above USD 750 per tonne. The ad valorem tax ranges from a minimum of 7.5 % to a maximum of 22.5 %, depending on how much average market prices climb above the threshold price. With market prices ranging below the threshold since September 2014, shipments of crude palm oil were tax-exempt during the last six months. Thanks to the exemption, crude palm oil exports increased at the expense of refined palm oil shipments (which lost their traditional tax advantage over crude palm oil). With a view to protect the interests of the domestic palm oil processing industry, the government is now considering to lower the threshold at which crude palm oil taxation kicks in from the current USD 750 to USD 500 – 600. In fact, at recent market prices – i.e. the average of USD 673 recorded during March – the lower threshold would lead to the reinstatement of the tax on crude palm oil exports. "]
[2015,"April","INDONESIA – biodiesel policy:  The government decided to raise nation-wide mandatory blending of palm oil-based biodiesel into transport diesel fuel to 15 percent. The current rate – in place only since last October – is 10 percent. It is not clear when the new rule will become effective. The move is aimed at boosting domestic biodiesel consumption so as to help contain the country’s outlays for fossil fuel imports, while also reducing CO2 emissions and lending support to the country’s oil palm sector. The latter has been adversely affected by the recent slump in international petroleum prices, which, by eroding the competitiveness of biodiesel, curtailed domestic palm oil demand. Under the higher blending mandate, the government expects domestic biodiesel consumption to reach 4.8 million tonnes per year –  which compares to only 1.6 million tonnes used in 2014. Private sources questioned the effectiveness of higher blending requirements, pointing out that even existing targets could not be enforced due to a variety of obstacles (see MPPU July’14). Reportedly, to support its ambitious biodiesel policy, the government is considering a number of accompanying measures. First, the government may require plantation owners to set aside 15 percent of their output for domestic usage (possibly offering tax breaks in return), which would help secure the raw material needed for the expansion in biodiesel production. With respect to the biodiesel industry, the government will have to find additional resources to subsidize the increased blending volumes that stem from higher blending mandates (see also MPPU Mar.’15). To this effect, the government is considering to introduce a fixed levy of USD 50 on each tonne of crude palm oil shipped outside the country – which would be in addition to the existing ad valorem export tax. Finally, with regard to setting the domestic biodiesel price  (i.e. the price at which distributors purchase biodiesel), the government has already reached the following agreement with biodiesel manufacturers: a reference price for biodiesel will be calculated by adding a fixed amount of USD 125 to the prevailing price for crude palm oil, thereby accounting for processing costs and profits. In conclusion, barring a recovery in international mineral oil prices, the government will likely implement a selection or all of the above measures with a view to ensure that biodiesel producers can continue producing and distributors can continue purchasing biodiesel, without passing the price gap to end-users."]
[2015,"April","MALAYSIA – palm oil export tax:  Following recent improvements in crude palm oil prices, the government announced that, in April, a 4.5 % tax will be imposed on crude palm oil shipments. Under Malaysia’s sliding export tax regime, shipments are subject to progressive taxation once the reference market price for crude palm oil rises beyond MYR 2 250 (USD 612) per tonne. Since September of last year, exports were tax-exempt as prices remained below that threshold. Reportedly, the duty exemption help mitigate the decline in prices caused by poor export demand and rising domestic stocks. By contrast, the duty’s reinstatement in April is meant to help secure adequate supplies for the domestic palm oil refining industry. "]
[2015,"April","MALAYSIA – biodiesel policy:  Government officials confirmed that the possibility of raising nationwide mandatory blending of palm oil-based biodiesel with regular diesel from currently 7 percent to 10 percent was being explored. Extending compulsory blending from road transportation to other sectors, such as industry and power generation, is also being considered. The implementation of such policies is expected to raise annual use of palm oil for biodiesel to 1.2 million tons in the longer run. It is important to note that the current 7 % blending target is only in place since last November and that its implementation had to be delayed several times on technical grounds (see also MPPU Sep., Nov. & Dec ’14). The government’s biodiesel policy (in place since 2011) aims at stimulating local demand for crude palm oil while promoting renewable, ‘green’ sources of energy. "]
[2015,"April","THAILAND – market control:  According to official sources, no new government imports of crude palm will be authorized. At the beginning of this year, to address domestic supply shortages, the government had approved state imports of 40 000 – 50 000 tonnes of crude palm oil, in addition to revising the internal retail price of refined palm oil (see MPPU Feb.’15). Considering that domestic stocks are expected to return to adequate levels from April, new state imports are said to be unnecessary. To guarantee stability in supplies and prices, the government will continue its joint consultations with farmer representatives, processors, consumers, business operators and concerned government agencies. Reportedly, processors will be urged to pay at least  THB 5 (USD 0.15) per kg of fresh fruit bunches.  "]
[2015,"April","ZAMBIA – import policy:  Reportedly, the Zambian government decided to suspend the issuance of licenses for edible oil imports. The decision was taken to allow experts to study the impact such imports have on the domestic market. The government had been urged to take action by agricultural producers, manufacturers and consumers who claimed that the country was flooded with cheap imported edible oils. The expert study will be made public as soon as the investigations are concluded, government officials said.              "]
[2015,"April","Sector development measures – France, olive oil:  In France, where production dropped by 60 percent last year as a result of a pest outbreak and bad weather, olive oil producers will benefit from financial assistance and other measures. Reportedly, the government will offer the following support measures to olive producers:  social payment exemptions; interest payment deferrals; tax reimbursements;  and facilitated access to loans. Furthermore, assistance will be provided to a national producer federation for technical activities to prevent, control and eradicate the concerned pest."]
[2015,"April","Illicit trade -  China – soybean smuggling:  According to official sources, soybean smuggling worth CNY 5.46 billion (USD 879 million) has been uncovered last year in Qingdao City, Shandong Province. China is the world’s leading soybean importer, accounting for more than 60 percent of global registered trade. The official forecast for soybean import in the 2014-15 marketing year amounts to 74 million tonnes."]
[2015,"April","Illicit trade - Ghana – palm oil smuggling:  Industry sources denounced the practice of illegal imports of sub-standard palm oil into the country. Reportedly, over the past six months, illicit palm oil imports amounted to about 48 000 tonnes. The industry urged the government to ensure that all vegetable oils entering the country meet the quality standards and are properly priced. Ghana’s domestic annual palm oil consumption is estimated at 370 000 tonnes, of which 70 percent is imported. According to private sources, domestic production has the potential to meet a growing portion of local demand, which is likely to grow rapidly in the coming years."]
[2015,"April","Illicit trade -  India – coconut oil adulteration:  In Kerala State, following reports on contamination in rice, the local government informed that measures to prevent adulteration in all food items would be strengthened. With respect to past cases of coconut oil adulteration (see MPPU May’14), official sources said that no new instances of adulteration with mineral oil had been detected. However, numerous samples of coconut oil contaminated with edible palm and palm kernel oil had been found, triggering action against concerned manufacturers and distributors. Meanwhile, a local association of coconut oil producers is said to have launched a website to throw light on brands that sell adulterated oil in the market. Customers can have their oil checked for adulteration at government approved laboratories, and the results of these tests will be published on-line along with the brand’s name.             "]
[2015,"April","Herbicide news:  The International Agency for Research on Cancer (IARC), an extension of the United Nation’s World Health Organization (WHO), assessed the carcinogenicity of selected insecticides and pesticides, including glyphosate. The herbicide glyphosate has been classified as ‘probably carcinogenic to humans’, implying limited evidence of carcinogenicity in humans, but sufficient evidence in experimental animals. Glyphosate currently has the highest global production volume of all herbicides and is extensively used in agriculture. Its use has increased sharply since the development of crops that have been genetically modified to make them resistant to glyphosate. Soybean falls under these crops and glyphosate-resistant GM soybean varieties (such as Roundup Ready) are widely used in the Americas, which account for nearly two thirds of global soybean production. The use of herbicide resistant GM soy largely depends on farmers spraying their fields with glyphosate to kill weeds. According to the IARC study, glyphosate has been detected in the air during spraying, in water and in food. The general population is said to be exposed primarily through residence near sprayed areas, home use and diet, although the levels observed have been generally low. Global seed producer Monsanto, who patented glyphosate as a herbicide in the 1970’s, questioned the impartiality and scientific rigour of the IARC’s assessment. The company reckoned that IARC’s conclusions were inconsistent with comprehensive safety reviews conducted by national regulatory and health authorities around the world that found all labeled uses of the herbicide to be safe for humans. It should be noted that IARC’s evaluations will not alter glyphosate’s label, current registrations or use, given that the responsibility for regulations, legislation or public health interventions rests entirely with individual governments and other international organizations. Interestingly, in recent years, the development of glyphosate resistance in weeds is reported to be on the rise – a development which prompted concerns that farmers may need to use increasing amounts of herbicide to control so-called ‘super weeds’ (see MPPU Feb.’11, Feb.& Nov.’14 and Mar.’15).                        "]
[2015,"April","Biodiesel news -  R&D:  In Canada, a provincial grant has been made available to the University of Saskatchewan to carry out research on glycerol purification and conversion technologies. Currently, raw glycerol – a byproduct of vegetable oil-based diesel production – is said to have limited commercial value, but improved technologies could double the price that companies can charge for the substance, thus adding considerable value to biodiesel production."]
[2015,"April","Biodiesel news -  Industry news:  Neste Oil, a global producer and supplier of certified sustainable biofuels, informed that, in 2014, waste-based raw materials accounted for 62 percent of the company’s feedstock while certified sustainable palm oil accounted for the remainder, which basically inverted the proportions in place two years earlier. The company informed that it was constantly searching for new waste-based raw materials of increasingly poorer quality. Currently, the prime raw materials used are fat residues from the animal and fish industry, used cooking oil, and various residues generated during vegetable oil refining."]
[2015,"April","Biodiesel news - Health issues:  New research conducted in Australia seems to suggests that exhaust from rapeseed oil-based biodiesel may be more harmful to human epithelial cells than exhaust from traditional diesel. Allegedly, the ultrafine size of fuel exhaust particles from refined and blended rapeseed oil may lead to respiratory problems.     "]
[2015,"April","Oil palm industry news - Indonesia – palm oil-based biogas:  In Indonesia, the government is seeking to promote public-private  partnerships for the production of POME-based biogas in the context of rural electrification projects. Using palm oil mill effluent (POME) – a high organic-content waste product of the milling process – as feedstock in biogas plants is considered as one of the most cost-effective  forms of power generation in remote rural areas featuring oil palm plantations.  Although incentives have been provided to POME-biogas developers, palm oil mills are said to show limited interest in the initiative. Reportedly, palm oil companies feel not familiar with the energy business and find it more attractive to invest in their core business rather than POME-based power generation. Apparently, this means that much of the available POME continues to be either discharged into watercourses or gets emitted as biogas into the atmosphere. For recent private sector initiatives on POME-biogas in other countries see MPPU May’14.  "]
[2015,"April","Oil palm industry news - Indonesia – oleochemical industry:  The Indonesian government has allocated state funds for research on palm oil use in the manufacture of plastics. Reportedly,  the initiative aims at cutting back industry costs by sourcing cheaper and renewable raw materials. Under the programme, the possibility of substituting mineral oil-based propylene (a building block for engineering plastic polypropylene) with palm oil-based propylene will be explored.    "]
[2015,"April","Oil palm industry news -  RSPO membership:  The Roundtable on Sustainable Palm Oil (RSPO), a globally recognized self-regulating industry body, expelled 15 members and suspended 62 others that failed to comply with the body’s reporting requirements. RSPO members are expected to regularly submit reports that allow to measure progress towards certifying palm oil operations or purchasing certified sustainable palm oil. Reportedly, terminated members are mostly small processors and traders, while suspended members include a broader range of firms. RSPO acknowledged that some of the terminated/suspended members are not in compliance because they have ceased operations or no longer source palm oil. Terminated/suspended entities will see their membership privileges revoked, meaning in particular that their certificates, trade and trademark licenses will cease to be valid. Overall, the failure of some firms to report on progress made in sustainable sourcing seems to be in open contrast with the tendency of private companies to voluntarily commit to ‘greening’ their commercial practices.     "]
[2015,"April","Oil palm industry news -  RSPO investigation:  Reportedly, the planting practices of a very large palm oil producers are under investigation at the Complaints Panel of RSPO. According to a civil society group, the company had acquired land from local people without free and informed consent, thus violating RSPO guidelines aimed at protecting local peoples’ land rights. Allegedly, the company also breached national laws  and failed to carry out proper HCV (high conservation value) assessments prior to developing new plantations. Reacting to these complaints, the company confirmed its commitment to on-going dialogue and multi-stakeholder collaboration to improve processes and find solutions for sustainable palm oil production. Moreover, the company decided to stop planting on any new land and displacing any farmers while the RSPO investigation was underway."]
[2015,"April","Sourcing responsibly produced soy:  FEFAC, the European Feed Manufacturers' Federation, published a first version of its Soy Sourcing Guidelines. The guidelines reflect what the federation considers to be the minimum social and environmental requirements for soy cultivation. The aim is to foster European mainstream market supply for responsibly produced soy. Intended as a professional recommendation for interested member associations seeking to enter the market for responsible soy, the guidelines build upon six basic principles: legal compliance, environmental responsibility, good agricultural practices, protection of community relations, respect for land rights and responsible working conditions. See also MPPU June’14 and Feb.’15."]
[2015,"April","High-oleic soybean oil:  According to research conducted on animals in the United States, high-oleic soybean oil can cause obesity, glucose intolerance and fatty liver in a nearly identical manner to that of conventional soybean oil, when part of a typical American high-fat diet. Reportedly, this is the first time high-oleic soybean oil has been tested for long-term metabolic effects. Obtained from genetically modified soy varieties, high-oleic soyoils (and similar oils obtained from other oilseeds) are generally claimed to be beneficial for human health thanks to the absence of trans fat and to an elevated content of monounsaturated fats (see also MPPU June’13 & May’14). Industry sources expect demand from farmers for these varieties to be high as premiums on crop sales are reported at USD 0.15 – 0.18 per tonne. Notwithstanding, concerned seed companies decided to delay the new varieties’ full commercial launch in the U.S. because some countries, notably the EU and China, still have to approve the new strains."]
[2015,"May","BRAZIL – disease control:  In Brazil, a mandatory soybean-free period will come into force once the current soybean harvest is completed. In place since the mid 2000’s, the measure is meant to help slow the spread of diseases from one soy crop to the next – notably Asian rust but also corn ear/cotton ball worms. While in the states of Rondônia, Bahia, São Paulo, Paraná and Mato Grosso do Sul cultivation will be banned for the customary June 15th – September 15th period, in Mato Grosso and Goiás the ban has been extended to last from June 1st to September 30th. During these periods, no commercial soybean cultivation will be allowed and all adventitious soybean that may have germinated after the last harvest must be destroyed."]
[2015,"May","BRAZIL – agricultural support:  Reportedly, the austerity measures envisaged by the Brazilian government this year will not affect public outlays and interest rates for agricultural production loans in the 2015/16 crop season. The details of the government’s agricultural support package for the new season are expected to be announced soon.     "]
[2015,"May","CHINA – GMO policy:  Further to the government’s recent pledge to improve GMO regulatory mechanisms to address relevant risks and safety concerns (see MPPU Mar.’15), the agricultural ministry has proposed amendments to the rules governing the development of GMO crops for domestic cultivation. Reportedly, the planned changes will not alter the government’s pro-GMO stance but will increase the supervision of GM crops under development. Research institutes will have to guarantee that GM products are developed according to safety rules, and public officials at county level will be involved in the supervision of GMO trials."]
[2015,"May","EUROPEAN UNION – GMO policy - National import preferences:  The European Commission has proposed new legislation that would allow individual member states to restrict or prohibit the entry of GM crops into their territory even if these were approved for use in food and feed by the bloc as a whole. The new law would mirror recently approved legislation that grants member states similar opt-out rights with regard to the cultivation of GM crops (see MPPU Apr.’15). Under the proposal, countries may restrict GMO imports on concerns other   than those assessed at EU level, i.e. risks to human/animal health or the environment. In fact, the EU’s current authorization criteria and procedures would remain in place. The onus of proving that opt-out measures would comply with EU law – including the bloc’s internal market principle and the EU’s international obligations – would rest with the concerned country. Reportedly, the Commission’s proposal has attracted criticism from various camps. The EU food and feed industries expressed concern that country opt-outs would fragment the EU internal market and disrupt imports, thereby undermining the competitiveness of the union’s food, feed and livestock sectors. The proposed law also risks upsetting the EU’s trading partners. Especially grain and oilseed imports from the United States, Brazil, Argentina and Canada – where GM varieties play a dominant role – could be affected by the new proposal. Moreover, civil society groups reckoned that, with the EU’s current risk assessment process remaining in place, the new rule could open the door to GM crops, without providing the legal basis for national governments to opt out. In order to enter into force, the Commission’s proposal still requires the agreement of both the European Parliament and the Council.  "]
[2015,"May","EUROPEAN UNION – GMO policy - EU approvals:  The European Commission has authorized the importation of 10 new GMOs  – including 6 new soybean strains – for placing on the bloc’s internal market for either animal or human consumption, while also renewing             7 existing authorizations – including one for a    GM rapeseed variety. The concerned genetic modifications mainly offer protection against pests or resistance to herbicides. The newly approved GMOs have gone through the usual authorization procedure, including a favourable scientific assessment by the European Food Safety Agency (EFSA). The authorizations are in addition to the existing 58 GMOs authorized in the EU for food and feed use and will be valid for 10 years. Any products produced from these GMOs will be subject to the EU’s labelling and traceability regulations."]
[2015,"May","EUROPEAN UNION – olive tree disease control:  The debate on possible measures to prevent the xylella fastidiosa disease from spreading beyond Italy’s Apulia region continued during April (see also MPPU Mar.’14). In March, the European Commission had proposed to fell at least 1 million trees infected with the bacterium. However, at subsequent meetings of the EU Plant Health Committee (which includes experts from all member states), no consensus has been reached. Italy resisted the European Commission’s proposal, informing that local authorities had identified an eradication zone, marking affected trees for felling. While member countries fearing the contamination of their own olive groves (as well as other fruit plants) have called for stricter measures, others reckoned that  a ban on plant exports from the concerned region and setting up a buffer zone where all trees would undergo pesticide treatment would be sufficient. Pending a decision by the bloc as a whole, France has announced a ban on imports of all susceptible plant material from the Apulia region. Importantly, according to EFSA, there is no indication that eradication of trees is a successful option once the disease is established in an area. The agency recommended the continuation and intensification of research activities on the host range, epidemiology and control of the disease outbreak. Research conducted by the University of Foggia (Apulia) suggests that the xylella bacterium may only be a secondary cause of death for the olive trees, coming after a fungal contagion which could be curable without resorting to the felling of trees. As far as the contagiousness of the disease for other plants       – in particular vine and citrus – is concerned, conclusive evidence is not yet available."]
[2015,"May","EUROPEAN UNION – biofuel policy: After consultations with the Council, the European Parliament agreed to limit, by the year 2020, the amount of crop-based biofuels (also called conventional or first generation biofuels) that can be used in the transport sector to 7 percent – which compares to a 5 percent-limit originally proposed by the Commission and to 6 percent previously backed by the Parliament (see also MPPU July ’14). Member states would also be required to set national targets for the share of so-called advanced biofuels, i.e. fuels based on waste and residues as well as on new sources of biomass such as seaweed. The draft law aims to accelerate the shift to alternative feedstock for biofuel production, thereby reducing greenhouse gas (GHG) emissions caused by the growing use of farm land for biofuel crops. Reportedly, in the EU, emissions from transport are responsible for around one quarter of total GHG emissions – second only to the energy sector. The new law would also require fuel suppliers to report the estimated level of GHG emissions caused by ‘indirect land-use changes’ (ILUC), so as to allow the European Commission to publish data on ILUC-related emissions. The Commission would have to prepare a report on the scope for including ILUC emissions data in mandatory carbon accounting. The draft law will now go back to the Council for final approval.     If cleared, member states would be expected to comply with the regulation by 2017.       "]
[2015,"May","EUROPEAN UNION – marketing support:  New programmes to promote selected agricultural products in the EU and on third country markets have been approved by the European Commission. In part, the move is intended as a proactive response to the import bans imposed last year by the Russian Federation. Costs for the      1–3 year-projects will be shared by the EU and the national private organizations that proposed the activities. Regarding oilcrops, programmes on seed oils, olives and olive oil have been approved for a combined value of EUR 28 million (USD 31.9 million). The geographical focus will be on countries outside the EU, in particular in Eastern Europe and the CIS as well as China."]
[2015,"May","INDIA – oilmeal export subsidy:  As part of India’s new Foreign Trade Policy for 2015–2020, the country’s existing reward programmes for specific merchandise exports have been simplified and merged. Under the new unified scheme, oilmeals, which previously enjoyed a 2 percent export subsidy, will reportedly benefit from a  5 percent reward percentage. The subsidy is payable to traders as a percentage of realized FOB export values and may be settled against other incurred charges."]
[2015,"May","INDIA – marketing control:  The Food Safety Department of Kerala State has banned thirteen brands of coconut oil following the detection of high levels of adulteration or substandard quality. Late last year, state authorities had intensified tests on coconut oil after complaints by consumers and sector organizations were received (see also MPPU May’14 and April ’15). Reportedly, more than 25 percent of the samples tested were found to be substandard, adulterated or misbranded. In most cases, coconut oil was adulterated with lower-priced palm oil, palmkernel oil or mineral oil. The public has been invited to inform the authorities should the banned brands be found in the retail market. In the meantime, the Central Food Technological Research Institute and India’s Coconut Development Board contributed to the development of a safe, high-quality blend of coconut oil (80%) and sunflowerseed oil (20%). Reportedly, thanks to an advanced blending technology, the best properties of both oils can be harnessed, while helping to prevent adulteration of coconut oil."]
[2015,"May","INDONESIA – environmental policy: Official sources informed that a ban on forest clearing that expired in April is going to be extended. An exact timeframe for the renewal  was not provided. Introduced in May 2011 for a two-year period, the initial moratorium was subsequently extended for another two years (see MPPU Aug.’11 & June’13). Meant to prevent deforestation and destruction of carbon-rich peatlands, the moratorium’s extension could affect the expansion plans of mining companies and oil palm plantations."]
[2015,"May","MALAYSIA – variable palm oil export tax:  Based on recent drops in international palm oil values, the sliding tax on palm oil exports has again been suspended in May. The duty was previously waived from September 2014 to March 2015. In April, when the reference prices rose above the trigger of MYR 2 250 (USD 631) per tonne, the duty had been reinstated at a rate of 4.5 percent."]
[2015,"May","MEXICO – agricultural support: The agricultural ministry has offered one-time support payments to farmers in certain states who produced and marketed selected crops, including soybeans, during the 2014 spring/summer crop- cycle. The measure is meant to compensate farmers who suffered losses due to the sharp decline in commodity prices registered between September 2012 and September 2014. The measure will be funded through the ministry’s Marketing and Market Development Program which aims at boosting productivity in the agro-food sector and includes interventions to regulate supply and demand for agricultural products. Crops that in 2014 were supported through the government’s Forward Contract Program have been excluded from the payment. For soybeans,   a little over 150 thousand tonnes – or roughly     40 % of total domestic production – qualify for the subsidy, with eligible growers receiving a compensation of MXN 250 per tonne (USD 17)."]
[2015,"May","THAILAND – biodiesel:  Seven percent mandatory blending transportation diesel with palm oil-based biodiesel has been reinstated in April – reversing a cut to 3.5 percent last January, when the government reduced the blending proportion in response to a temporary shortage    in domestic cooking oil supplies (see MPPU Feb.’14). The move comes as domestic palm oil production and inventories have grown again, reaching burdensome levels and putting pressure on domestic prices."]
[2015,"May","TURKEY – import policy:  Reportedly, the minimum duty charged on sunflowerseed imports has been lowered to USD 173 per tonne (from previously USD 182), while that on imports of  sunflowerseed oil has been raised to USD 540 per tonne (from USD 504)."]
[2015,"May","UNITED STATES – biofuel policy: The Environmental Protection Agency (EPA), which is responsible for setting annual targets for domestic biofuel use, intends to propose ethanol and biodiesel blending requirements for calendar years 2014, 2015 and 2016 by June 1st of this year, eventually finalizing them by November 30th. The same schedule would apply for the announcement of 2017 volume requirements for biomass-based biodiesel. Although EPA is supposed to issue final targets prior to the start    of the concerned year, it failed to finalize 2014 targets and has yet to propose targets for 2015.      "]
[2015,"May","Trade news – China/India oilmeal trade:  Rapeseed meal shipments from India to China are expected to resume during the next few months, with China set to lift a three year-old ban on its imports (introduced after the detection of a hazardous chemical in consignments from India   –  see MPPU Feb.’12 & Aug.’13). Reportedly,     a memorandum of understanding resolving all pending issues is about to be signed by the two countries.     "]
[2015,"May","Biofuel industry news – South Africa: The plans of a private-public joint venture to set up a large biodiesel plant have been put on hold. The plant was supposed to start production in 2017. Reportedly, delays in the issuance of a regulatory framework for the country’s biofuel sector are behind the postponement. Regulations requiring a blend rate of 5 % biodiesel in regular transport diesel – as well as provisions for financial incentives to biofuel manufacturers – were expected to go into effect in October this year. Once implemented, the government’s blending target should translate into an annual domestic requirement of 400 000 tonnes of biodiesel. The said investment project was supposed to match that demand, using about 1.1 million tonnes of rapeseed as feedstock."]
[2015,"May","Sector development initiatives - Canada – soybean:  The federal government has allocated CAND 225 000 (USD 187 000) to   a public-private partnership promoting the soybean sector. Under the project, Agriculture and Agri-Food Canada and the Canadian Soybean Association will join forces to raise the quality and competitiveness of Canadian soybeans on global markets. Reportedly, one of the key objectives of the research initiative is to identify soybean varieties suitable for the production of soymilk for Asian markets."]
[2015,"May","Sector development initiatives - Pacific region – coconut:  The European Union has allocated EUR 3.5 million (USD          4 million) for the development of the coconut industry in the Pacific. The project will be implemented by the Land Resources Division of the Secretariat of the Pacific Community (SPC). Target actors the private sector, farming communities and other key players like the banking sector. Reportedly, the initiative will focus on value addition, including the development of niche markets for high income products like virgin coconut oil and coconut water."]
[2015,"May","Sector development initiatives – Caribbean – coconut:  The EU is funding       a EUR 3.5 million (USD 4 million) project to boost productivity, quality and value addition in nine Caribbean countries. Jointly implemented by the Caribbean Agricultural Research and Development Institute (CARDI) and the International Trade Centre (ITC), the project aims at improving income and employment opportunities, food security and the overall competitiveness of the coconut sector. In a first phase, key stakeholders will map out country specific value-chain road maps, looking at market options, support services, policy matters and the potential for region-wide cooperation."]
[2015,"May","Sector development initiatives – Malaysia – palm oil derivatives: The Government of Malaysia is promoting the development of a high-value palm oil-based biorefinery industry in East Malaysia. Reportedly, MYR 2 billion will be invested in the production of palm oil derivatives that can be used to produce plastic and nylon products. Two parallel projects in the region are focusing on the production of bio-compressed natural gas from palm oil and on the conversion of palm oil mill waste into organic fertilizer.      "]
[2015,"May","Glyphosate herbicides:  The recent classification of glyphosate, a widely used herbicide ingredient, as “probably carcinogenic to humans” by an agency of the United Nation’s World Health Organization (see MPPU Apr.’15) attracted the attention of companies, consumers and policy makers worldwide. In China, the Ministry of Agriculture has been asked to make public the results of the toxicological evaluation that led to the herbicide’s approval in the late 1980s. Reportedly, China has become the world’s top producer of glyphosate after the patents of US-based producer Monsanto expired in 2000. Furthermore, in the United States, federal regulators might start testing food products for glyphosate residues. Apparently, tests for glyphosate are currently not included in the USDA’s regular food testing programmes. The tolerance level for glyphosate in food items has been set at 20 parts per million. Testing for glyphosate is said to be more costly than for other herbicides."]
[2015,"May","Palm oil sourcing –  Cargill – palmoil:  Global agri-business and trading firm Cargill has assisted a group of Malaysian smallholders to achieve sustainable production certification. Reportedly, the company provided farmers with direct training and support on best agricultural practices, improved farm management practices, health and safety as well as environmental and social impact management. Certification should allow the farmers to participate in the rapidly growing global trade of certified sustainable palm oil. Typically, small independent growers lack the means to comply with the principles and standards of certifying bodies like RSPO (Roundtable on Sustainable Palm Oil) and cannot afford to hire auditing firms, a key requirement to obtain certification. Reportedly, Cargill also began testing unmanned aerial drones, which, inter alia, could be used to map and monitor the use of forest land and other areas of high conservation value."]
[2015,"May","Palm oil sourcing –  ADM – soy/palm oil:  Global supplier of agricultural commodities ADM has committed to curb deforestation resulting from the farming of soybeans and oil palm. Although the company buys all of its soy and virtually all of its palm oil from third parties, as a global trader it is said to be well-positioned to push better environmental policies through the supply chain. Reportedly,    the company – with help from third-party environmental experts – will begin mapping its supply chain to assess where forests and other areas of high conservation value are at risk."]
[2015,"May","Soybean news – Genetic diversity:  According to a group      of US scientists, the lack of genetic diversity in today’s commercially grown soybean varieties leaves the crop vulnerable to diseases and other stress factors. To address the danger of persistently narrowing gene selection they recommend to use the much more variable wild varieties found in China. Reportedly, the team has identified a series of lines with valuable traits from selected wild soybeans and is offering the material to seed companies for integration into their research and development programmes."]
[2015,"May","Soybean news – Stress tolerance:  Argentina has granted the world’s first regulatory approval for an abiotic stress tolerance trait in GM soybeans. Regulatory authorities have tested the new strain, known as HB4, and concluded that soybean containing HB4 is as safe for the environment as conventional soybean. Allegedly, extensive testing undertaken by the industry in Argentina and the United States have shown that HB4 soybeans produce stable and high yields under multiple stress conditions, including drought and other stresses typically found in soybean production areas. While preparing for the variety’s commercial launch, the biotechnology companies that developed the trait intend to work closely with local and global regulatory agencies to obtain additional approvals. "]
[2015,"May","Soybean news – Soy-food health claim:  Canada’s health authorities have approved a health claim linking the consumption of protein-rich soy food products – such as tofu, yogurt, cheese, textured protein – to lower cholesterol levels, citing evidence showing that consumption of at least 25 grams of soy protein per day helps reduce cholesterol. Food manufacturers are now allowed to include this information directly on packaging. Similar regulations are said to be in place in Brazil, Japan, Malaysia, the Philippines, Indonesia, the Rep. of Korea and the United States.  "]
[2015,"July","ALGERIA – import policy:  The country’s import duty on animal feed, including soybean meal, will remain suspended until the end of the current year. In place since September 2012, the suspension aims at stabilizing the domestic market and containing rises in local retail prices for meat."]
[2015,"July","ARGENTINA – biodiesel export duty:  During the last twelve months, the government has modified the export tax for biodiesel on a monthly basis, sometimes retroactively and with considerable month-to-month variations. For March, April and May 2015, the rate was fixed at, respectively, 5 percent, 13.2 percent and 9.8 percent. Officials from the biodiesel industry stated that frequent and unpredictable tax changes make the planning of commercial operations difficult. "]
[2015,"July","AUSTRALIA – biodiesel excise tax:  Originally planned to be phased-in over the next five years, excise taxes for biodiesel will now be introduced over a longer period of 16 years, starting in 2016 (see also MPPU June’14). The duty will be phased-in in equal increments until it reaches 50 percent of the excise rate applied to conventional diesel. The country’s biodiesel industry welcomed the government’s decision, saying that it affords investor certainty and enables producers to take a long term view, thus providing a sustainable footing for the sector’s growth. Momentum for the use of biofuels as an alternative to mineral oils is reported to be growing in the country. After New-South-Wales, the state government of Queensland recently decided to mandate biofuel use in gasoline starting in July 2016. The exact blending rate remains to be determined.              "]
[2015,"July","AUSTRALIA / CHINA – free trade agreement:  Certain agricultural commodities, notably oilseeds, cotton, wheat, sugar and rice, were kept outside the bilateral trade deal recently signed by China and Australia. Consequently, Australia’s exports of rapeseed to China are not going to benefit from tariff concessions. However, Australian government officials pointed out that sectors excluded from the current agreement will likely be re-examined within three years.     "]
[2015,"July","BRAZIL – agricultural support policies:  The government has presented the agricultural support package for the 2015/16 season. Contrary to spending cuts in other sectors, total programme outlays for commercial farming have been raised to BRL 187.7 billion (USD 60 billion), up 20 percent from last season’s level in Brazilian Real terms – but down 10 percent when expressed in US dollar terms. While the distribution of funds across the various programmes will remain largely unchanged, special consideration has been given to marketing support measures, assistance to medium-sized producers, agricultural equipment loans, storage facility expansion, and farm insurance schemes. Interest rates on production and marketing loans have been set at 7.75 percent for medium-sized farms and 8.75 percent for large agribusinesses, while loans for infrastructure development will vary between 7 percent and 8.75 percent. Although more expensive than last year, when the average interest rate was 6.5 percent, the loans remain attractive when compared to the Central Bank’s current lending rate of 13.25 percent. In addition, individual farmers will benefit from higher borrowing limits – generally 8 percent above last season’s level. Representatives from the agricultural sector pointed out that much of the year-on-year increase in public outlays will be in form of unsubsidized loans and that, for a number of programmes, the available financing will be offered without the usual government subsidies.     "]
[2015,"July","BRAZIL – infrastructure policies:  The country’s water transportation agency ANTAQ informed that the Tietê-Paraná waterway – a key watercourse used to ship grains and other bulk goods from southern and central-western states to ports in the Southeast – will reopen in the second half of 2015, after remaining closed for more than one year due to drought (see MPPU Feb.’15). Reportedly, works are underway to raise water levels and restore navigation conditions. According to industry estimates, last year’s closure of the waterway resulted in a 10-12 percent increase in grain transportation costs.  "]
[2015,"July","CANADA – pesticide use:  In the province of Ontario, the government introduced regulations aimed at reducing the use of neonicotinoid-based pesticides, which were proven to be highly toxic to bees. As natural habits and crop production depend on healthy pollinator populations, the protection of bee colonies is considered essential. From next year, the use of neonicotiniod-treated seed will be subject to limits, and from 2017, permission to use such seed will be contingent upon farmers filing a pest assessment report. Similar restrictions were introduced in the European Union last year (see MPPU July’14). Reportedly, in Ontario, about 60 percent of soybeans sown and virtually the entire maize crop are treated with the pesticide. Local scientists reported that the use of neonicotinoid-treated seeds has become indiscriminate and routine, regardless of whether or not pests are present.          "]
[2015,"July","CHINA – production support:  After abandoning state procurement and stockpiling of soybeans and cotton last year (see MPPU Nov.’14), the government announced it also intends to reform its rapeseed policy – characterized by nationwide procurement at uniform minimum purchase prices. In place since 2008, the current policies have led to stockpiles of nearly 6 million tonnes of rapeseed oil, entailing high financial costs for the government and high local rapeseed prices (exceeding world levels by nearly 40 percent), which encouraged imports and dampened demand for domestic produce. To halt this development, the government has decided to discontinue its procurement programme for rapeseed. Instead, limited federal funding will be allocated to five key provinces (Hubei, Hunan, Anhui, Jiangsu and Henan) in support of local purchases, while provincial governments are expected to formulate and implement their own policies and cover possible funding shortfalls. Details of the new approach are yet to be given. Apparently, provinces may choose to provide direct subsidies to rapeseed farmers based on their output and a set target price – as currently done for soybeans – or to pay subsidies to processors that buy rapeseed. "]
[2015,"July","ETHIOPIA – edible oil trade:  Reportedly, the government is revisiting its ban on private edible oil imports. In place since May 2011, the ban was introduced after unsuccessful attempts to regulate the domestic edible oil market via retail price caps (see MPPU May’11 & May’12). Given the country’s current commitment to free market policies, the government is considering lifting the ban and has commissioned a study on the economic impacts of letting private businesses import edible oil. "]
[2015,"July","EUROPEAN UNION – olive tree disease control:  Concerning the outbreak of xylella fastidiosa in Italy’s Apulia region (see MPPU May ’15), the EU Commission adopted a set of reinforced measures aimed at preserving healthy plants located in affected areas and preventing the further spread of the bacterium in the Union. The new measures require member states to: (i) notify new outbreaks; (ii) carry out official surveys; (iii) promptly demarcate infested areas; and (iv) refrain from planting host plants in infected zones. In infested areas, strict eradication measures will be put in place, including the removal and destruction of both, plants known to be infested and plants showing symptoms that indicate possible infection, as well as – within a radius of 100 meters – of all host plants, regardless of their health status. In addition, concerned member states are urged to increase their efforts to identify the causes of infection. Subsequent to the Commission’s decisions, the European Parliament, while welcoming the measures taken, called for additional interventions. Inter alia, it proposed to compensate olive producers for revenue lost as a result of the eradication measures and to introduce incentives for producers implementing preventive measures. It also recommended to scale-up scientific research to find more efficient means to fight the disease."]
[2015,"July","EUROPEAN UNION – GMO regulations:  The European Food Safety Authority (EFSA) issued two new guidance documents related to GMOs. One document, aimed at applicant companies seeking EU cultivation and marketing approval, illustrates the data requirements for risk assessments of GM plants. The other is meant to assists applicants in the preparation and presentation of requests for the renewal of authorizations of GM food and feed for import and processing in the Union.   "]
[2015,"July","INDIA – farmer support:  Following the official revision of this year’s monsoon forecast to ‘deficient’, the Union government informed that subsidies on diesel, power and seed will be provided to farmers whose crops are affected by insufficient monsoon rainfall. Already last year, the country received 12 percent less rains (compared to the long-run average), which led to sizeable losses in domestic oilseed, grain and cotton production. Reportedly, the government has prepared contingency plans for 580 districts and appointed nodal officers in every department to deal with emergencies. To protect farmers’ incomes, the Ministry of Agriculture is also planning to strengthen its federal crop insurance policy. At state level, the government of Madhya Pradesh is working on a new crop insurance scheme which would compensate farmers against both, losses due to erratic weather and revenue drops due to plunges in commodity prices. Farmers would also be ensured against post-harvest losses. The local government plans to set minimum returns levels for farmers against which compensations would be calculated. The insurance premiums would depend on a farmer’s average farm income. Madhya Pradesh is India’s second-largest grower of oilseeds after Gujarat.    "]
[2015,"July","INDONESIA – biodiesel/palm oil support:  The government has approved a regulation that requires exporters to pay a levy of USD 50 per tonne of crude palm oil and USD 10-30 per tonne of processed palm oil. The proceeds of the levy will primarily be used to fund the government’s recently announced biodiesel subsidies (see MPPU Mar. & Apr.’15). By promoting local biodiesel production (and thus demand for palm oil), the measure is eventually expected to support domestic palm oil prices. Reportedly, the new levy, which should become effective in August, will only be due when the export price for crude palm oil falls below the USD 750 per tonne mark – the threshold at which the country’s variable export tax kicks in. A special public service agency – controlled by six ministries – has been established to collect and manage the new levy. According to official estimates, the agency will collect at least USD 700 million per year, of which some 40 percent will be employed to subsidize domestic biodiesel consumption. The remainder will be used to: (i) support sustainable plantation businesses; (ii) enhance plantations’ human resource capacity; (iii) support the development of downstream industries; (iv) promote the use of palm oil in the energy sector; (v) protect plantation revenues through price optimization; and (vi) support small producers. According to official sources, domestic biodiesel sales by state-owned petrol company Pertamina (the country’s main supplier of biodiesel) has reached 2.1 million tonnes in 2014, below the targeted 2.9 million tonnes, and should climb to 3.8 million tonnes in 2015. Private sources project total 2015 consumption at no more than 3.1 million tonnes.  "]
[2015,"July","INDONESIA – sliding palm oil export tax:  With palm oil reference prices remaining below the threshold level of USD 750 per tonne, the export tax for crude palm oil will stay at zero in July (see MPPU Apr.’15). The export tax has been suspended since October last year.      "]
[2015,"July","MALAYSIA – biodiesel policy:  Government officials announced that mandatory blending of regular transport diesel with palm oil-based biodiesel will be raised to 10 percent by October this year. The current 7 percent (or B7) mandate is in place since November 2014, although nationwide implementation was completed only in January this year (see MPPU Apr.’15). Aimed at boosting domestic consumption of palm oil, the higher blending mandate is expected to translate into an annual uptake of crude palm oil by the biofuel industry of 1 million tonnes , or about five percent of total domestic production. Private sources estimate actual demand to rise to no more than 750 000 tonnes. According to the 11th Malaysia Plan, by the year 2020 the country should move to a B15 mandate.  "]
[2015,"July","MALAYSIA – variable palm oil export tax:  In June and July 2015, the tax on palm oil exports stayed at zero as the product’s reference price remained below the MYR 2 250 (USD 591) per tonne threshold that triggers taxation.     "]
[2015,"July","PAKISTAN – import policy:  The government proposed to raise, for the second consecutive year, the import tariff on soymeal, effective 1st July 2015 (see also MPPU Sep.’14). Reportedly, the measure has proven successful in stimulating imports of whole soybeans for domestic crushing (at the expense of soymeal imports), thereby shifting value addition to the country’s processing industry, which is suffering from considerable excess capacity. If approved by parliament, the effective import tariff for soybean meal would leap from 11 to 21 percent (comprising an increase in the general sales tax)."]
[2015,"July","THAILAND – market regulation:  New consultations were held between the government, farmer representatives, processors, consumers and other sector stakeholders to review the conditions of the domestic palm oil market and coordinate measures to stabilize domestic supplies and prices (see also MPPU May ’15). Against a background of abundant supplies and low producer prices, the government recommended that processors pay no less than THB 4.20 (USD 0.12) per kg of oil palm fruit. Provincial governors would oversee adherence to the price agreement. Furthermore, to improve product quality, the government proposed to suspend trade of palm fruits with less than 17 percent oil content and to introduce a premium for fruit with higher oil content. As for long-term measures, the government pledged to further promote consumption of palm oil in the energy sector, help reduce farmers’ production costs, and provide incentives for the construction of private storage facilities. Conversely, state purchases and stockpiling would only be considered when no other options were available.      "]
[2015,"July","UNITED STATES – non-GMO certification:  Amid rising calls by consumer groups for mandatory GMO-labeling, USDA decided to work on a new labeling protocol for GM-free foods, unofficial sources reported. Currently, companies can already put their own GMO-free labels (with many using a private label developed by nonprofit body Non-GMO Project), but there is no government-backed certification. Reportedly, USDA’s Agricultural Marketing Service is working with concerned food manufacturers to certify the accuracy of claims they are making on food packages. Eventually, foods would be allowed to carry a ‘USDA Process Verified’ label, along with ‘GMO-free’ claims. Certification would be entirely voluntary and companies would have to pay for it. In the meantime, consumer and environmental groups have renewed their call for mandatory labeling of GM-ingredients in packaged food by the country’s Food and Drug Administration (FDA), arguing that voluntary GM-free labels are not sufficient to help consumers know what is in their food. USDA’s stance remains that GMOs on the market now are perfectly safe, making mandatory labeling unnecessary. However, civil society groups pointed out that the proposed no-GM certificate failed to communicate details as to the standards used and process followed, and underlined that any certification scheme should be based on a third-party standard. Meanwhile, mandatory labeling efforts continue to be pursued in a number of U.S. states (see MPPU Dec.’13 & June ’14) – although, according to a draft bill recently introduced at federal level, any state law requiring labeling would be overridden in favour of voluntary USDA certification. "]
[2015,"July","UNITED STATES – trans fat policy:  The U.S. Food and Drug Administration (FDA) informed that it deemed trans fatty acids stemming from the partial hydrogenation of vegetables oils as ‘not generally recognized as safe’ for use in food products, therefore ordering U.S. food manufacturers to remove trans fats from their products within three years. The FDA thus finalized – after a period of public comment – a tentative determination made back in 2013 (see also MPPU Dec.’13 & May’14). The ruling came as no surprise to the industry. Required (since 2006) to list trans fat content on product labels, food manufacturers started replacing partially hydrogenated soybean oil with alternative products such as high-oleic and interesterified soybean oil as well as palm oil. At the end of the three-year compliance period, no trans fats will be tolerated in food products unless they are otherwise authorized by the FDA.  "]
[2015,"July","UNITED STATES – biofuel policy:  A year and a half behind schedule, the U.S. Environmental Protection Agency (EPA) published proposed volumes for domestic biofuel use in 2014 and subsequent years. For biomass-based biodiesel – largely made from vegetable oils – the targets proposed for 2014, 2015, 2016, and 2017 are, respectively, 5.4 million, 5.7 million, 6.0 million and 6.4 million tonnes. For 2014, the retroactive target has been established at a level reflecting actual use, while consumption targets over 2015-2017 are set steadily higher – though still falling short of the goals set by Congress in 2007. EPA’s proposals will remain open to public comment until July 27th. By end November, final volumes should be issued. Separately, USDA informed of a pledge of up to USD 100 million in grants to support infrastructural investments needed to make more renewable fuel options available to consumers. Assistance will focus on the installation of fuel pumps capable of supplying higher biofuel blends and other initiatives to promote such blends.","  "]
[2015,"July","Sector development initiatives – Algeria – olive oil:  The country’s olive industry, with assistance from the United Nations Industrial Development Organization (UNIDO), will set up a consortium of olive oil exporters to offer support to local producers and to promote Algerian olive oil on the international market. Reportedly, key challenges faced by the industry include:  quality preservation via improved harvesting techniques, processing methods, and storage facilities; adherence to international quality standards; and the need to set up certified laboratories meeting international requirements."]
[2015,"July","Sector development initiatives –   Canada – soybeans:  The country’s federal government continues to promote domestic soybean production. Reportedly, CAD 358 000 (USD 280 000) will be channeled to Canada’s soybean industry association to attend trade shows and organize missions that help raise the profile of Canadian soybean in international markets, especially in China, the United States, the Republic of Korea, Japan and the EU. In addition, in the Province of Manitoba, farmers are set to benefit from public funding amounting to CAND 1.2 million (USD 0.9 million) for research on improved soybean and maize production methods. The project is supposed to help producers take advantage of growing domestic and global market opportunities."]
[2015,"July","Sector development initiatives – Ghana – groundnut:  With financial support from the European Union, Ghana’s Export Promotion Authority is encouraging investments in groundnut production. The twofold objective is to improve local food supply and create opportunities for foreign exchange earnings. The project will target groundnut farmers and other stakeholders of the commodity chain, offering training programmes on production management, quality control and product certification. One of the key challenges faced by the industry remains high rates of aflatoxin contamination in groundnut, which bar the product from entering international markets."]
[2015,"July","Sector development initiatives – Ghana – oil palm:  Reportedly, the government has launched as strategic export development plan aimed at diversifying Ghana’s exports, in particular by increasing the share of non-traditional exports. Palm oil is one of the eleven priority products encompassed in the plan.      "]
[2015,"July","Sector development initiatives – Tunisia – olive oil:  The International Finance Corporation (IFC) provided a loan package worth USD 26 million to one of the country’s leading olive oil producers in a bid to ramp up the production of branded oil and target new export markets. The project is expected to benefit numerous local olive oil mills and farmers, thus supporting the development of the country’s olive oil sector."]
[2015,"July","Sector development initiatives –  India – palm oil:  Indian food manufacturer Ruchi Soya and international civil society organization Solidaridad signed a partnership worth EUR 4.5 million (USD 4.96 million) to promote sustainable expansion of oil palm cultivation. The project will work with Indian oil palm farmers, training them on sustainable high-yield cultivation practices, including means to optimize water use. Over the next four to five years, over 20 000 hectares of land (across five different states) are to be developed on a contract farming basis. To date, although the government identified 2 million hectares of land suitable for oil palm, cultivation has expanded at a very slow pace (see MPPU June’13). In the meantime, total annual consumption of vegetable oils has exceeded 22 million tonnes, of which more than 13 million tonnes are imported - dominated by palm oil (9 million tonnes)."]
[2015,"July","Sector development initiatives – Vietnam – palm oil:  A food company and a logistic services company in Vietnam will establish a joint venture with Malaysian Felda Global Ventures, one of the world’s largest palm oil operators. The purpose is to foster production and distribution of palm oil and specialty oils for the Vietnamese market. Reportedly, the initiative will capitalize on current available infrastructure, promoting the processing of crude palm oil originating in Malaysia.           "]
[2015,"July","Herbicide safety:  After classifying glyphosate, a widely used herbicide ingredient, as ‘probably carcinogenic to humans’ (see MPPU Apr.’15), the International Agency for Research on Cancer (IARC) classified the extensively used weed killer 2.4-dichlorophenoxyacetic acid (known as 2.4-D) as ‘possibly carcinogenic to humans’, i.e. one echelon below the ‘probably carcinogenic’ category but two levels above the ‘probably not carcinogenic’ classification. IARC’s decision was based on “inadequate evidence in humans and limited evidence in experimental animals” of ties between 2.4-D and cancer. Used widely in agriculture, forestry and urban sites since its introduction in 1945, 2.4-D is also meant to be used with newly developed soybean variety Enlist Duo, which received U.S. approval last year (see MPPU Nov.’14). Civil society groups urged U.S. regulators to revisit and possibly restrict the use of 2.4-D.       "]
[2015,"July","Biofuel news  –  Sustainability certification:  Biofuel producers can apply for an enhanced voluntary certification scheme launched by the Roundtable on Sustainable Biomaterials (RSB). The private international certification body has released the ‘Low iLUC Risk Biomass Criteria and Compliance Indicators’, an add-on certification module to its existing standard for biofuels and bio-products. Reportedly, the new standard allows producers to demonstrate that biofuel was produced with low indirect land use change (iLUC) and therefore minimal impact on food production and biodiversity."]
[2015,"July","Biofuel news  – Biodiesel initiative – India:  In India, a group of biodiesel producers established the national Biodiesel Manufacturers Association (BEMA). The purpose is to further the interests of the industry by removing regulatory hurdles, while educating corporate and retail consumers about the perceived environmental and cost benefits of biodiesel. Following the recent deregulation of biodiesel sales (see MPPU Feb.’15) and last year’s termination of subsidies on conventional diesel, the country’s biodiesel market is expected to expand. Rising demand is reported from the railway sector and from truck operators in the logistics industry, which together account for about one third of domestic diesel consumption. Operators are attracted by biodiesel as it allows them to reduce fuel costs while improving their green credentials. In a related move, the Union’s shipping ministry announced plans to replace 20 percent of diesel consumed at 12 major Indian ports with biodiesel. In support of these initiatives, the country’s standards authority is expected to develop standards for higher usage of biofuels in automobiles, locomotives, heavy engineering machines and generators."]
[2015,"July","Olive oil marketing:  In the United States, a class action lawsuit against popular brands of olive oil claims that the products in question are neither ‘made in Italy’ nor ‘extra virgin’ as reported on the labels. Lax enforcement of standards in olive oil trade has been reported repeatedly in the United States as well as other countries in recent years (see MPPU Dec’10, May’11, Nov.’13, May & Nov.’14).          "]
[2015,"July","Palm oil news  –  Sourcing policies:  An environmental group denounced the continued clearing of high conservation value rainforest by private oil palm developers in South East Asia – a development that doesn’t tally with promises by main customers to free their supply chains from all types of deforestation. If confirmed, such reports cast doubt on the high-profile no-deforestation policies announced by numerous multinational palm oil traders over the last one and a half years (see MPPU Mar’15 & Dec./June/May’14). Clearly, given the lack of independent bodies watching oil palm development activities and related palm oil sales, it is difficult to assess to what extent individual companies actually adhere to their voluntary ‘green’ commitments."]
[2015,"July","Palm oil news – RSPO – enhanced standards:  A group of large institutional investors and global consumer brands urged RSPO (Roundtable on Sustainable Palm Oil) to strengthen its standards for certifying the sustainable production of palm oil. Arguing that RSPO’s current standards lack protections for high carbon stock forests/peatlands and show an inconsistent record of enforcement, the private companies exhorted RSPO to: (i) prohibit deforestation and peatland clearance; (ii) report on GHG emissions and targets; (iii) ensure full traceability back to the field; (iv) guarantee objective, rigorous auditing and verification; and (v) strengthen its grievance and complaints mechanisms. Allegedly, current gaps in certification meant that purchasing RSPO-certified palm oil was not sufficiently addressing critical sustainability concerns in the palm oil supply chain – a situation that seems to explain the recent wave of corporate commitments to source palm oil according to principles that go beyond RSPO standards (see MPPU May, June, Dec.’14). RSPO responded that it was working on additional voluntary guidelines that included stricter requirements on deforestation, peatland development and indigenous peoples’ rights. Expected to be issued later this year, the new guidelines will be made available to companies as a voluntary addendum to the existing principles and criteria."]
[2015,"July","Palm oil news – RSPO – regional certification targets:  Reportedly, RSPO members agreed on the following targets regarding market uptake of certified sustainable palm oil (CSPO) in specific geographical regions: 100 percent CSPO in Europe by 2020, 50 percent in Indonesia and Malaysia, 30 percent in India, and 10 percent in China."]
[2015,"July","Palm oil news  –  Jurisdictional certification:  In Indonesia, the provincial government of Central Kalimantan is working on a jurisdictional approach for sustainable palm oil production. Reportedly, the initiative envisages moving from single plantation/mill certification toward a comprehensive certification system at the provincial level. Similarly, in Malaysian Borneo, the state of Sabah is weighing a proposal to produce exclusively RSPO-certified palm oil by 2025. Currently, the fact that palm oil originates from a wide range of actors still poses challenges to state-wide certification. However, once these obstacles are overcome, a state or geographic region would be able to differentiate its palm oil from that of other regions, potentially enjoying competitive advantages."]
[2015,"July","Palm oil news –  Obstacles to zero-deforestation:  According to industry representatives and civil society groups, in Indonesia, certain state regulations tend to hamper zero-deforestation commitments by agroforestry companies and plantation owners. For instance, oil palm concession holders are required to use all their land to plant palms, precluding them from allocating land for conservation purposes. Apparently, land that is left undeveloped can be claimed back by the state because it considers it as abandoned. To address this problem, the government ought to introduce regulations that act as a legal umbrella for deforestation-free commitments."]
[2015,"July","Soybean varieties - Low-allergen soybeans:  Scientists from two U.S. universities developed a new low-allergenic, ready-to-use soybean. Generated through conventional breeding methods, the new variety contains low levels of the proteins responsible for the allergic and anti-nutritional properties of conventional beans. In fact, these allergens have been removed before, but via genetic engineering, which made the beans unsuitable for critical uses such as infant formula. The newly developed beans are said to be suitable for direct food and feed consumption – as opposed to traditional varieties, which must be heat-treated to eliminate the harmful protein."]
[2015,"July","Soybean varieties - High-oleic soybeans:  In the United States, a public-private partnership attained a patent for breeding soybeans with a high content of oleic fatty acid. The conventional, non-transgenic breeding methods yields beans with a oleic acids content of 80-85 percent, which exceeds the industry’s current 70 percent standard for beans classified as ‘high-oleic’. Some reckon high-oleic soybean oil to have significant market potential in cooking and baking thanks to its stability and alleged health benefits (see also MPPU Apr.’15). A private source projected high-oleic varieties to account for 20 percent of total soybean plantings within the next 8-10 years.  "]
[2015,"July","Soybean varieties - Genetic diversity:  U.S. scientists succeeded in crossing soybean with a related wild, perennial plant that grows like a weed in Australia (see also MPPU May’15). The successful introduction of new genetic diversity to soybeans is expected to help reducing the plant’s rising susceptibility to an array of pests and pathogens. Reportedly, the scientists managed to develop first fertile plants with resistance to soybean rust and soybean cyst nematode (as well as high yield levels and elevated protein content)."]
[2015,"July","Soybean varieties -  Oil vs. protein content:  In Canada, a biotechnology company has joined forces with the University of Alberta to develop soybean varieties with increased oil content. Reportedly, the project will use genomic modification to isolate soybean seed traits that can enhance total oil content in soybeans without negatively affecting protein levels."]
[2015,"July","Soybean cultivation - Control of resistant weeds – United States:  The U.S. Environmental Protection Agency approved a new herbicide that is supposed to help soybean and cotton growers manage resistant weeds (see also MPPU Nov.’14). Ready to be launched in 2016 under the brand name Warrant Ultra, the product is said to provide superior post-emergence control of problematic weeds as well as good broad-spectrum residual weed control."]
[2015,"July","Soybean cultivation -  Non-GM soybeans – United States:  In Arkansas, interest for conventional or non-GM soybean varieties is said to be rising. Reportedly, conventional varieties offer the following advantages:  (i) non-GM seeds can cost up to fifty percent less than GM-seeds as no proprietor technology fees need to be paid; (ii) non-GM soybeans command a premium of USD 0.75–1.50 per tonne thanks to expanding demand from the local poultry industry; (iii) farmers have the option to save seed for the next growing season; and (iv) farmers can use conventional weed control measures to combat resistant weeds. On the downside, selling non-GM soy carries extra costs as crops need to be segregated throughout the marketing chain – unless the beans are stored on-farm and sold directly to end-users."]
[2015,"July","Soybean cultivation - Royalty payments – Argentina:  In Argentina, royalty payments for GM seed material developed by Monsanto remain subject to controversy (see MPPU June ’13). The U.S. seed company expects farmers to pay royalties, even when the planted seeds containing its technology come from a prior harvest. Recently, Monsanto requested trade companies to inspect soybean shipments for the presence of GM material – a measure deemed illegal by farmers. The position of the Agricultural Ministry is that farmers should have to pay Monsanto only once for the seed. Now, in a bid to discourage farmers from selling the genetically modified seeds generated from their crops, the government decided to set up a registry that will track the amount and use made of GM soybean seed reaped from farmers’ crops."]
[2015,"August","CANADA / UKRAINE – trade agreement:  The two countries successfully concluded negotiations towards the Canada – Ukraine Free Trade Agreement (CUFTA). Under the trade pact, which still requires parliamentary approval, Canada’s exports of rapeseed and rapeseed oil would enjoy improved access to Ukraine’s market. Conversely, Ukrainian exports would benefit from preferential access to the Canadian market, which is likely to stimulate Ukrainian sales of refined sunflowerseed oil to Canada.       "]
[2015,"August","CHINA – stock policies (rapeseed):  According to market observers, following the decision to terminate its nationwide rapeseed procurement and storage scheme (see MPPU July’15), the Chinese government will likely ramp up sales of stockpiled rapeseed oil. Public stocks are estimated at 6 million tonnes, of which 600 000 tonnes could be sold on the marketplace during 2015/16. If realized, such sales could limit the country’s rapeseed imports, especially taking into account the recent appreciation in world prices. Reportedly, government sales could be affected by quality issues, as part of the product has been kept in storage for several years.        "]
[2015,"August","EGYPT – import policy:  To date, in Egypt, the importation of basic foodstuffs destined for public distribution programmes has been effected through public tenders. Now, official sources informed that the government would begin importing cooking oil and other foods through direct order agreements, so as to cut out middlemen and reduce transaction costs (see also MPPU Sep’14). "]
[2015,"August","ETHIOPIA – trade policy:  The government decided to lift its ban on edible oil imports by the private sector (see also MPPU June’15). From August 2015, selected private businesses will participate in the country’s imports. Reportedly, the government will set import quotas and profit margins for each company, also granting access to foreign currency.       "]
[2015,"August","EUROPEAN UNION – GMO policy:  Regarding the EU new regulation that allows member states to opt-out of GM crop cultivation (see MPPU Apr.’15), a number of governments declared to support national bans, although it remains unclear when and how exactly the EU directive will be translated into national legislation. As to the proposed regulation that would allow member states to restrict or ban the use of GM food or feed on their territory (see MPPU May’15), a majority of governments seems to be opposed on the grounds that such measures would not be compatible with the EU’s single market rule nor with WTO regulations. Reportedly, some member states would like the European Commission to carry out an impact assessment so that economic and other risks could be better determined. As anticipated, the draft law has been subject to strong criticism by the EU’s feed, livestock and poultry industry, which relies heavily on imported GM products, notably GM soybeans. Concerns have also been expressed by members of the European Parliament. Reportedly, MEPs from all political groups reiterated that national bans could violate single market and WTO rules, that various terms in the draft texts were legally undefined, that an impact assessment was needed, and that the proposed law could prove unworkable. A plenary vote on the file is scheduled for October 2015. Reportedly, the draft EU regulation has also been questioned during the July meeting of the WTO Committee on Sanitary and Phytosanitary Measures. On a related matter, the European Food Safety Authority (EFSA) has issued a positive safety assessment for two new herbicide-tolerant GM soybean varieties (for import into the EU for food and feed uses), thus paving the way for eventual authorization by the EU Commission.    "]
[2015,"August","EUROPEAN UNION – biofuel policy:  The EU Council of Ministers formally adopted revised EU rules on the use of biofuels as transport fuels, including a limit on the contribution of crop-based (or conventional/first-generation) biofuels (see also MPPU May’15). The EU Commission issued a statement criticizing the deal, stating that (i) it lowered the level of ambition in mitigating the ILUC impacts of conventional biofuels, and (ii) contained no significant incentives for the transition towards advanced biofuels and other non-ILUC options. Meanwhile, the union’s biofuel industry – which blamed years of policy uncertainty for slowing growth and investment – urged member states to transpose and implement the new rules quickly so as to allow the EU to meet its climate and energy targets. In the case of biodiesel, EU-wide blending with crop-based fuels has been estimated at 4.3 percent in 2014 – possibly offering scope for crop-based biodiesel consumption to expand by about 60 percent until 2020. However, given current market conditions, the new 7-percent cap is not likely to be reached over the coming five years, according to market observers.     "]
[2015,"August","EUROPEAN UNION / INDONESIA – WTO dispute panel:  According to unofficial sources, the Indonesian government’s request to set up a WTO dispute panel against the EU’s anti-dumping duties for Indonesian biodiesel has been opposed by the European Union. Should Indonesia decide to renew its request, the panel would be automatically formed. At the core of the dispute is a cost adjustment methodology used by the EU during its anti-dumping investigations. A related WTO dispute panel – in which Argentina challenges the EU’s anti-dumping duties – is expected to produce its report at the end of this year (see also MPPU May/July/Nov’14)."]
[2015,"August","INDIA – trans fat policy:  The government’s Food Safety and Standards Authority has published a draft regulation to update labelling requirements pertaining to the declaration of trans fatty acid content in packaged food products. The agency has invited comments from interested public stakeholders."]
[2015,"August","INDIA – trade policy:  State and industry officials from Kerala State urged the central government to give necessary directions to the State Trading Corporation to stop importing crude and edible grade coconut oil. Allegedly, such imports would be detrimental to coconut farmers and traders in Kerala, who are already suffering from declining coconut oil prices and rising palm oil imports."]
[2015,"August","INDONESIA – palm oil export taxation:  The government announced a change in the way the country’s progressive export tax on palm oil is calculated. From August 2015, the escalating export tax (which kicks in when the government’s reference price for crude palm oil exceeds USD 750 per tonne) will be expressed in US dollar instead of a price percentage. The former tax rate, which ranged between 7.5 to 22.5 percent of the per-tonne price, will be replaced by a dollar tax running from 3 to 200 USD per tonne. The government also informed that the flat export levy introduced last month (see MPPU July’15) will be collected irrespective of the reference price for crude palm oil – i.e. contrary to initial announcements stating that the levy would not need to be paid when prices exceeded USD 750 per tonne. Therefore, when the reference price is above USD 750 per tonne, palm oil exporters will need to pay both the export tax and the levy.          "]
[2015,"August","MALAYSIA / TURKEY – trade agreement:  A free trade agreement between the two countries is expected to come into force in August 2015. Exporters from Malaysia and Turkey will enjoy preferential access for most products in each other’s territories. Concerning Malaysian palm oil, Turkey has offered a one-off duty reduction of 30 percent from the current MFN rates, which should place Malaysian products at a competitive advantage over similar goods originating from other countries. Currently, Malaysia is Turkey’s second-largest supplier of palm oil, after Indonesia. Turkey’s exports of oilseeds and vegetable oil to Malaysia are comparatively small.  "]
[2015,"August","NEPAL – import policy:  Reportedly, the government suspended a national tax and halved the import duty on selected foodstuffs, including oilseeds and edible oils, in an effort to lower consumer prices. Effective 16 July 2015, the custom duty on palm oil – the vegetable oil that dominates imports and domestic consumption – has been cut from 5 percent to 2.5 percent."]
[2015,"August","PERU – trade policy:  The country’s consumer defense and competition authority initiated anti-dumping investigations about imports of pure biodiesel from Argentina. Reportedly, the move is in response to allegations by the domestic palm oil and biodiesel producers claiming unfair competition by Argentinian manufacturers. Back in 2009, Peru imposed anti-dumping and countervailing duties on biodiesel originating from the United States. According to the private sector, although diesel fuel sold in Peru must contain 5 percent of biodiesel since 2011, efforts to promote domestic biodiesel production have been idled by the availability of competitively priced foreign biodiesel."]
[2015,"August","RUSSIAN FEDERATION – import policy:  The Russian government is considering regulating the use of palm oil in food production. While there have been no indications on why such measures might be imposed, potential restrictions might include limiting the use of the oil in certain products (such as foods consumed primarily by children) and measures to increase market transparency and improve labeling. Palm oil consumption by domestic food manufacturers is said to have grown significantly since 2014. While some sources associate the rise in consumption with Russia’s sanctions on EU food imports, others point to surges in the domestic price for sunflowerseed oil. "]
[2015,"August","THAILAND – market regulation:  The government is determined to resume public purchases of palm oil in an effort to support producer prices, which seem to have tumbled as a result of burdensome supplies (see also MPPU July’15). Official sources informed that funds will be set aside to allow the Public Warehouse Organization to absorb 100 000 tonnes of palm oil during the second half of 2015.  "]
[2015,"August","UNITED STATES – GMO policy – Regulatory framework:  The White House has called on the three federal agencies that have oversight responsibilities for biotech issues – the Environmental Protection Agency, the Food and Drug Administration and the Agriculture Department – to modernize the country’s regulatory system for biotechnology products. While the current, 30 year-old framework is said to effectively protect health and the environment, the administration recognizes that (i) recent advances in science and technology have altered the product landscape; (ii) the complexity of current regulations can make it difficult for the public to understand how product safety is evaluated; and (iii) navigating the regulatory process can be unduly challenging, especially for small companies. The action aims at ensuring public confidence in the regulatory system by improving the latter’s transparency, predictability, coordination and efficiency. The White House proposed three initial steps: clarifying the roles of the three federal agencies; developing a long term strategy; and commissioning an independent analysis of the future landscape of biotech products. The update of the regulatory system will undergo public notice and comment before it is finalized."]
[2015,"August","UNITED STATES – GMO policy – Labeling legislation:  The U.S. Lower House passed draft legislation that would create a unified, national framework and standard for food labeling regarding the inclusion or exclusion of GM ingredients. The draft law rules out compulsory labeling of foods produced with GM ingredients, including over-riding state laws that mandate such labeling (see also MPPU July’15). Instead, under the draft bill, federal regulatory agencies would be required to examine the safety profile of new GM foods (replacing a voluntary consultation process) and to develop a national standard for voluntary GMO labeling. Supporters of the draft bill argued that mandatory labeling is unnecessary and would burden the food industry with cumbersome and costly requirements. However, opponents claim that evidence on the safety of GMOs remains mixed. They also point out that consumers have asked for more information and have a right to know whether or not a product contains GMOs. Furthermore, they called for stringent measures to prevent contamination of non-GM crops by GM-crops. Representatives of the agricultural and food industry expressed their support for federally set guidelines on voluntary labeling and voiced concerns about the confusion caused by the diverse labeling standards currently in place at state level."]
[2015,"August","UNITED STATES – biofuel policy –  Mandatory consumption targets:  Different groups, in particular officials representing the agricultural sector and biofuel industry as well as a group of U.S. senators, have urged the Environmental Protection Agency (EPA) to raise the biodiesel consumption volumes proposed under the Renewable Fuels Standard for the 2014–2017 period (see MPPU July’15). Allegedly, by setting lower limits than originally envisioned by the U.S. Congress, EPA failed to recognize the country’s biodiesel production capacity. EPA’s public comment period closed on 27 July 2015 and the agency is expected to finalize its volume ruling by 30 November 2015."]
[2015,"August","UNITED STATES – biofuel policy  –  Cottonseed oil-based biodiesel:  The EPA has evaluated the lifecycle GHG emissions for biodiesel produced from cottonseed oil and proposed to apply the same values established in 2010 for soybean oil. This implies that cottonseed oil-based fuels can meet the criteria for renewable fuels set under the Renewable Fuel Standard programme. EPA believes that its determination provides a conservative estimate of potential emissions associated with the production and use of cottonseed oil-based biodiesel. The agency has invited public comment on its preliminary analysis."]
[2015,"August","UNITED STATES – biofuel policy – Tax incentives:  U.S. lawmakers are reviewing a proposal to extend the tax break of 1 USD per gallon of marketed biodiesel (as well as the small agri-biodiesel producer credit of US cents 10 per gallon) through 2016. In effect since 2004, the tax break has been allowed to expire at the end of 2014 (see MPPU Jan’15). Lawmakers are also considering changing the tax break from a ‘mixture credit’ to a ‘production credit’, so as to ensure that the measure benefits only domestic biodiesel production and doesn’t subsidize imported biofuels. "]
[2015,"August","ZIMBABWE – biofuel policy:  According to local press, the government is considering to introduce mandatory blending of transportation diesel with 2 percent biodiesel by the end of this year. Currently, consultations with the industry are being held and comments from stakeholders evaluated. The policy would be aimed at reducing the country’s import bill for crude oil and creating employment opportunities for rural people."]
[2015,"August","Sector development news – Canada – oilseeds:  In an effort to improve the quality and output of oilseed and grain production in the country’s three Maritime provinces (Nova Scotia, Prince Edward Island, and New Brunswick), the federal government has allocated a grant worth CAD 800 000 (USD 609 000) to the Atlantic Grains Council (AGC). The public-private partnership builds on AGC’s agreement to make available producer contributions from a new research checkoff fund."]
[2015,"August","Sector development news – Nigeria – oil palm:  The Central Bank of Nigeria is taking action to revive the country’s oil palm sector. Apparently the initiative aims at rising domestic production as a means to reduce edible oil imports. As a first step, the bank will implement an “Anchor Borrowing Program” designed to foster partnerships and create financial links between smallholders and processors, including through the promotion of producer cooperatives. Furthermore, importers of edible oil may be denied access to foreign exchange."]
[2015,"August","Certified sustainable palm oil:  Malaysian producer associations reported that some 400 000 independent oil palm smallholders are going to have their estates certified under the government-backed Malaysian Sustainable Palm Oil (MSPO) certification standard. Thanks to initial public funding of MYR 50 million (USD 13 million) earmarked for that purpose, certification of independent smallholders, i.e. autonomous producers with oil palm estates of up to 40 hectares, should receive a boost. Auditing of independent smallholders is expected to start as soon as the public grants will be disbursed. To facilitate the auditing process, smallholders will be encouraged to form cooperatives. Smallholder representatives stressed that it will be paramount that the government actively promotes the recently launched MSPO standard for it to become a globally recognized norm (see also MPPU May/July/Dec.’14). Reportedly, the majority of plantation companies as well as smallholders organized under the FELDA settlers schemes have opted for the internationally recognized RSPO certification, accepting stringent rules and elevated costs."]
[2015,"August","Quality control – Sri Lanka:  According to edible oil manufacturers, sales of inferior, substandard coconut oils have increased in Sri Lanka’s local markets, jeopardizing the health of the people. Citing numerous cases of product adulteration and deceptive product labelling, producers of branded edible oil called on responsible government authorities to strengthen the country’s food control mechanisms so as to better safeguard the interests of both consumers and producers. Reportedly, quality, nutritional, safety and hygienic issues are not adequately addressed under existing food certification schemes."]
[2015,"August","Plant protection – rapeseed:  While the use of neonicotinoid-based pesticides has recently been outlawed in parts of Canada to protect honeybees (see MPPU July’15), in the United Kingdom, where such pesticides are banned since 2013 based on an EU-wide moratorium, the government has approved temporary emergency uses of the pesticides in selected areas in an attempt to protect the crops from heavy pest attack. Reportedly, similar exceptions have been authorized in other EU member states."]
[2015,"August","Disease spread – olive tree:  A first case of xylella fastidiosa infection has been reported from outside Italy – specifically from Corsica, France. After the discovery of heavy infection in olive groves in Italy’s Apulia region in 2013, EU-wide measures were introduced to combat the further spread of the disease, while France banned the importation of susceptible plant material (see MPPU Mar’14 & May/July’15). The infection detected in Corsica concerns an evergreen shrub, which confirms an earlier finding by EFSA that the bacterium can strive on a wide range of host plants, making it difficult to prevent the disease from spreading.  "]
[2015,"August","Research findings – Rapeseed meal:  According to research conducted in the United States, rapeseed meal could be an effective replacement for soybean meal in dairy cow rations. Although rapeseed meal is characterized by a low level of crude protein (relative to soymeal), its reduced protein degradation and favourable amino acid profile have proven to be effective in low protein dairy diets. "]
[2015,"August","Research findings  – Asian rust:  Brazilian researchers warned of a critical situation developing for soybeans in South America due to the outbreak of Asian rust brought about by the practice of farmers to plant two soybean crops within a single crop year, instead of opting for crop rotation. While in Brazil the practice has been curbed by new rules mandating soybean-free periods (see MPPU May’15), planting of a second soybean crop is said to keep expanding in neighbouring countries, such as Paraguay. As spores of the Asian rust fungus migrate easily over long distances, production agreements involving all concerned countries are urgently recommended. In addition to regulations regarding second soybean cropping, agronomists also advised that measures to reduce the presence of host plants in the fields are needed"]
[2015,"September","INDIA – sector development:  Concerned about the country’s heavy dependence on imported edible oils, the government set out to make India self-sufficient in oilseeds within the next five years. Measures taken in pursuance of this objective include the following - Crop procurement:  The government decided to widen its procurement programme. Traditionally responsible for public purchases of wheat and rice only, from October 2015, the state-run Food Corporation of India (FCI) will also buy annual oilcrops from farmers – a move designed to make oilseed production more remunerative for farmers, eventually raising domestic output. Details about the new procurement policies and other changes in support programmes for oilseed farmers have not been provided yet."]
[2015,"September","INDIA – sector development:  Concerned about the country’s heavy dependence on imported edible oils, the government set out to make India self-sufficient in oilseeds within the next five years. Measures taken in pursuance of this objective include the following - Oil palm cultivation:  The government plans to spend USD 1.53 billion over the next three years to encourage farmers to cultivate oil palms. The programme will target nine, primarily coastal, states, where about 2 million hectares of fallow farmland have been identified as offering suitable climatic conditions. Past efforts to stimulate oil palm cultivation failed to produce the hoped-for results: since the first major attempt to promote oil palm more than two decades ago, total area under cultivation has reached only 200 000 hectares. Reportedly, key factors behind the poor results include: (i) the long gestation period of oil palm trees; (ii) the lack of appropriate irrigation systems and private processing facilities; and (iii) land ceiling laws that discourage commercial oil palm cultivation by private companies (see also MPPU June’13 & July’15)."]
[2015,"September","INDIA – sector development:  Concerned about the country’s heavy dependence on imported edible oils, the government set out to make India self-sufficient in oilseeds within the next five years. Measures taken in pursuance of this objective include the following - Olive cultivation:  In Rajasthan, the government reiterated its commitment to support olive cultivation. Given the successful completion of experiments on state-farms, the crop can now be taken to farmers’ fields, officials said. Land will be allocated to farmers, who will also be provided with free planting material and technical support. Moreover, plans are underway to promote the consumption of both olive oil and table olives. Reportedly, promising varieties have been identified under a collaborative effort between India and Israel. "]
[2015,"September","INDIA – oils/fats standards: India’s food product standards have been amended to limit the content of trans fatty acids in vegetable fats and hydrogenated vegetable oils to maximum 5 percent (by weight), effective August 2016. Furthermore, the country’s Food Safety and Standards Authority published a draft regulation which updates the labelling norms for edible vegetable oils and fats. The regulation calls for the inclusion of information on the type of edible oils and vegetable fats used and on the content of trans fats and saturated fats on food product labels. The proposal will be finalized once public comments have been considered."]
[2015,"September","INDONESIA / MALAYSIA – palm oil cooperation:  Bilateral talks between government officials from Indonesia and Malaysia resulted in an agreement to: (i) adopt a common supply management strategy when prices for palm oil drop; (ii) jointly work towards the improvement of the public perception of the nutritional value of palm oil and its  environmental footprint; (iii) coordinate  efforts to sustain the income of oil palm farmers; and (iv) promote transboundary investment in developing the palm oil industry.      "]
[2015,"September","RUSSIAN FEDERATION – export policy:  In accordance with its WTO commitments, the government is to reduce, as of 1st September 2015 the export duties on a number of products, including oilseeds. The current 6.7 percent duty on soybeans will be scrapped, while that on rapeseed will be reduced from the current 11 percent to 6.5 percent, but not less than Euro 11,40 per tonne, and that on sunflowerseed from 13.2 percent to 9.9 percent, but not less than Euro 14,81 per tonne. "]
[2015,"September","SOUTH AFRICA – biofuel policy:  The government is reviewing its biofuel subsidy plans in light of the sharp fall of mineral oil prices. Declining crude oil prices are said to make planned subsidy payments to biofuel producers unaffordable. Under a revised scheme manufacturers would be required to compete against each other to be awarded aid. Support payments are supposed to become effective on 1st October, when blending requirements are set to become mandatory."]
[2015,"September","TURKEY – GMO imports:  Turkey’s Biosafety Board has approved two GM soybean (and three GM maize) events and their products for feed use. The decision marks the first biotech trait approval since 2011. The authorization will enable the release of shipments that had been detained at ports and facilitate future imports. A number of other GM events, including seven soybean and four rapeseed traits, are still undergoing risk assessments.   "]
[2015,"September","Insecticide ban – European Union: The EU’s Food Safety Authority confirmed that neonicotinoid-based pesticides used in rapeseed cultivation could harm bees, jeopardizing their pollinating role. Earlier research had already prompted the European Commission to limit the use of these pesticides from December 2013 (see MPPU June’13/July’14/Aug.’15)."]
[2015,"September","Industry news – palm oil - Joint venture Indonesia–Malaysia:  A special economic zone for palm oil downstream processing is to be developed under a joint venture between Indonesian industrial conglomerate Rajawali and Malaysia’s palm oil company Felda Global Ventures. Scheduled for completion in early 2017, the pioneer project is meant to help Indonesia reduce its focus on crude palm oil exports while recognizing Malaysia’s extensive expertise in palm oil processing."]
[2015,"September","Industry news – palm oil - Industrial applications:  In Malaysia, researchers are working on the development of palm oil-based valve fluids for use in hydraulic systems. Palm oil is said to be an attractive substitute to hydrocarbon oils as it remains stable over a wide temperature range, has low viscosity and is biodegradable. Reportedly, the research will also investigate the potential for using recycled palm oil."]
[2015,"September","Industry news – biofuel - Biodiesel feedstock – Islamic Republic of Iran: In Iran, researches are looking into the production of biodiesel from descurainia pinnata (commonly known as flixweed or tansy mustard), an annual oilseed belonging to the mustard family. The plant is said to strive in wide range of climates, requiring only small amounts of water and other inputs. Seeds contain 22 percent of a non-edible oil, whose fatty acid composition is said to make the crop well-suited as feedstock for biodiesel production."]
[2015,"September","Industry news – biofuel - Aviation biofuel – Indonesia:  State-owned oil and gas company Pertamina will invest USD 480 million in a refinery for the production of palm oil-based aviation fuel. From next year, Indonesia’s aviation sector will be required to reduce its use of fossil fuels through the inclusion of 2 percent biofuel in jet fuel. The blending rate will be raised to 3 percent in 2020 and 5 percent in 2025. The new biofuel refinery is expected to go on-stream in 2018, producing about 200 000 tonnes of jet-biofuel per year for both the domestic and export markets."]
[2015,"September","Domestic market issues - Illegal GMO trade – China:  After quarantine authorities discovered illegal sales of genetically modified (GM) soy to food manufacturers at ports in the Shandong province, soy importers in the province decided to suspend their trading activities. Shandong serves as the country’s main distribution hub for imported GM soy. In China, GM soy can be crushed and processed into feedstuff and cooking oil, but the use of whole GM beans in food manufacturing – notably for tofu and soy sauce – is not permitted. Typically, China’s farmers, who cultivate exclusively GM-free varieties, cater for the needs of domestic soy-food producers. However, it appears that food companies have turned to cheaper imported GM material, due to the large price gap between imported and domestically grown soybeans. Last year, the illegal use of imported soy was estimated at 2–3 million tonnes.     "]
[2015,"September","Domestic market issues - Transport infrastructure – Brazil:  According to private sources, close to one-fifth of the 1300 kilometer-long BR163 highway that connects the State of Mato Grosso with the Amazon basin (and thus the country’s northern ports) remains unpaved and parts of the paved tracts are in poor condition. Reportedly, works will only be finalized in 2017 – as opposed to the 2016 deadline announced by the government earlier this year (see MPPU Feb’15).  With Mato Grosso accounting for a quarter of Brazil’s total grain output and one-third of total soybean production, increased use of Northern export corridors would relieve the burden on the highly congested southbound highways. Traders estimate that, once BR163 becomes fully operational, freight rates will amount to one-third of the costs incurred when grains/soybeans are shipped to the Southeastern ports. In fact, counting on the new overland connection, trading firms already invested in new shipping terminals along the Amazon River and ports in the Northeast (see MPPU March’15).     "]
[2015,"September","Varietal developments - GM ‘Bt soybean’ – United States:  According to U.S. scientists, GM soybean variety ‘Intacta RR2 Pro Bt’ could help controlling caterpillar attacks in the United States. Developed specifically for South America, the variety is widely planted in Brazil, Paraguay and Argentina and has been approved for importation in China (see MPPU Apr./Aug.’13) – but not for cultivation in the United States. There seems to be no indication as to if/when the technology could be approved. According to the researchers, late planted U.S. soybeans would benefit the most. "]
[2015,"September","Varietal developments - Expiry of GM patents:  Recently – twenty years after Monsanto launched its first GM seeds, notably ‘Roundup Ready Soybean’ – some of the company’s early patents have expired,  leading to the emergence of first ‘generic GM seeds’. Reportedly, a number of U.S. universities are developing new GM soy varieties that contain Monsanto’s Roundup resistance genes. Although patents may be filed on such new varieties, seeds are expected to cost half as much and farmers will likely be free to save and replant them. With Monsanto’s Roundup-resistant varieties accounting for ninety percent of U.S. soybean plantings, farmers are expected to welcome increased competition. On the other hand, generic GM seeds will have to compete with new, allegedly more performant, GM varieties. Furthermore, the fact that GM seed traits are losing patent protection also raises regulatory issues: importing countries require GM traits to be registered regularly – for example every three years in China and every ten years in the EU. Considering that soybeans get mingled in elevators and crushing plants, when approvals of older products lapse, all exports face potential disruptions. In this regard, Monsanto informed that it will maintain its regulatory files up-to-date only until 2021."]
[2015,"September","Varietal developments - Non-GM rapeseed – China:  Breeding company Cibus and crop protection firm Rotam joined forces in the development of a non-GM herbicide-tolerant rapeseed to be produced in China. The initiative aims at meeting the country’s growing demand for GM-free rapeseed oil. Chinese consumers are said to view non-GM rapeseed oil as a healthy alternative to GM soybean and palm oil. Allegedly, the new product would strengthen the Chinese rapeseed industry by lowering production costs and increasing yields, while also providing environmental benefits."]
[2015,"October","CHINA – GMO policy:  Following reports that farmers in Heilongjiang Province are illegally growing GM-soybeans, the ministry of agriculture announced a nationwide investigation over the suspected illegal cultivation of GM-crops. China, the world’s top buyer of GM-soybeans, does not allow the cultivation of GM-crops on its territory, and sales of GM-soybeans from whatever origin to the local food industry are forbidden. Heilongjiang, China’s main soybean growing region, has a reputation for producing protein-rich non-GM beans for local soy-food producers, and its GM-free beans also enter the export market. Recently, the government also ordered investigations over the destination of imported GM-soybeans (see MPPU Sep.’15). The above moves address rising public concerns that illegal GM-products could enter the country’s food chain.                             "]
[2015,"October","EUROPEAN UNION / TUNISIA – olive oil trade:  The European Commission proposed to raise the tariff rate quota for imports of olive from Tunisia into the EU. Under the proposal, Tunisia’s annual duty-free import quota would be increased from 35 000 to 91 700 tonnes for 2016 and 2017. The initiative is aimed at supporting Tunisia’s economy in light of recent difficulties, including terrorist attacks earlier this year. Olive oil is Tunisia’s top agricultural export commodity to the EU and the olive sector is reported to employ one fifth of the country’s agricultural workforce. To come into force, the Commission’s proposal still requires formal approval by the European Parliament and the Council. "]
[2015,"October","EUROPEAN UNION – biodiesel anti-dumping duties:  The EU extended its anti-dumping duties on biodiesel imports from the United States for a further five years, until 2020. The duties were introduced in 2009 to counter public support measures enjoyed by US producers (see MPPU Sep.’09). While the US biodiesel industry argued that the EU’s punitive measures were no longer justified, the EU Commission claims that the risks of harm to the EU industry persisted and therefore chose to extend the duties (see also MPPU Nov.’14). The leading feedstock used for biodiesel production in the United States is soybean oil."]
[2015,"October","EUROPEAN UNION – GMO policy:  EU officials reported that 19 out of the bloc’s 28 member states requested opt-outs from the cultivation of a GM-maize variety which the European Commission had earlier been cleared for EU-wide cultivation. The requests to opt-out, which also concern several pending applications (including one GM soybean event), conform with a newly adopted law that allows individual member states to ask for exclusion from any approval request for GM-crop cultivation on their respective territory (see MPPU Apr.’15)."]
[2015,"October","HONG KONG – edible oils/fats standards:  The Hong Kong Special Administrative Region of the People's Republic of China announced the introduction of new safety standards and certification requirements for edible oils and fats. Applying equally to locally manufactured, exported and imported products, the measure is specifically aimed at preventing the recycling of used cooking oils and other substandard fats and oils as ingredients of edible oils/fats."]
[2015,"October","INDIA – import policy:  The government has raised the import tariffs for vegetable oils by 5 percentage points. The new ad valorem tariffs for crude and refined oils stand at, respectively, 12.5 percent and 20 percent. The move is directed at containing the ongoing surge in imports in low-priced palm oil which, reportedly, is severely hurting the local refining industry. Swelling imports are also discouraging farmers to expand oilseed plantings, thus compromising the government’s goal to turn India self-sufficient in edible oils within the next five years. The hike in duties follows a similar increase implemented in December 2014 (see MPPU Jan.’15). Representatives from the private sector claim that the duty increases are too small to prevent imports from rising further in the long run, considering that domestic consumption of edible oils keeps expanding by 5–6% each year. Furthermore, the duty differential between crude and refined oils is said to be insufficient to protect the local refining sector from imports of low-priced refined oils (see also MPPU Feb.’14). However, policy makers remain concerned that stronger duty increases could drive up consumer prices, fueling domestic inflation.                "]
[2015,"October","INDIA – biodiesel policy:  India’s state-owned oil marketing companies, which supply more than 95% of the fuel consumed in the country, have issued tenders to purchase biodiesel from local producers. Together with the recent deregulation of domestic biodiesel sales, the move is likely to stimulate domestic biodiesel production and consumption. While the government pursues a 5% biodiesel blend target, it does not subsidize biodiesel production. Also, the introduction of nation-wide statutory blending requirements has been postponed several times amid concerns about domestic biodiesel supplies and regulatory issues (see also MPPU Apr. & July’15)."]
[2015,"October","INDIA – market regulation:  Federal provisions limiting the amount of stocks of edible oils and oilseeds (as well as pulses) that private traders are allowed to hold have been extended for another year until September 2016, including new stock limits for registered warehouses. The authority to regulate trade has been granted to state governments to ensure adequate availability of the concerned commodities in the domestic market. In particular, the provisions aim at preventing hoarding and unscrupulous trading which led to upward spirals in food prices in the past. "]
[2015,"October","INDONESIA – biodiesel subsidization and oil palm support:  In line with previous government announcements, state officials informed that funds collected via the recently introduced levy on palm oil exports (see MPPU July & Aug.’15) are ready to be used for  subsidizing domestic sales of palm oil-based biodiesel and to replant aging oil palms. As for biodiesel, IDR 2 700 (USD 0.20) will be made available to distributors for each liter sold on the market so as to bridge the existing price gap between conventional diesel and biodiesel. With regard to the replacing of old palms, funds are available for the replanting of 15 000 hectares this year, which should be followed by 100 000 hectares next year. ",null,"  "]
[2015,"October","INDONESIA / EUROPEAN UNION – biodiesel anti-dumping duties:  Upon Indonesia’s request, the WTO’s dispute settlement body has established a panel to examine whether the EU’s anti-dumping duties on biodiesel imports from Indonesia are consistent with the existing international trade agreements. The EU’s anti-dumping duties were introduced in 2013 for five years and also concerned imports from Argentina (see MPPU June & Dec.’13). A separate panel established upon Argentina’s request (see MPPU Jan. & May ’14) is expected to issue its first report before the end of this year.     "]
[2015,"October","MALAYSIA – market regulation:  The government announced that it will provide incentives to plantation owners for the replanting of old oil palms with a view to (i) raise productivity levels, and (ii) temporarily reduce national palm oil output and thus domestic stocks so as to boost palm oil prices, which have dropped to six-and-a-half year lows. From 1st October to 31st December 2015, oil palm estates will have access to payments amounting to MYR 1 000–1 500 per ha (USD 238–357), for a total area of 83 000 ha. The government has earmarked MYR 100 million (USD 23.4 million) for the programme, which is expected to reduce crude palm oil production by 250 000 tonnes in 2016. Smallholders are excluded from the initiative as they are covered under separate replanting programmes launched in 2013 and 2014 (see MPPU Jan.’13 & June’14)."]
[2015,"October","PAKISTAN – olive tree cultivation:  Pakistan’s Agricultural Research Council has provided an update on its efforts to promote olive farming in the country (see MPPU Nov.’14). The Council is planning to plant olive tree saplings on 3 200 ha across Pakistan this year, while a total of 20 200 ha are earmarked to be developed over the next five years. Farmers will not be charged for the planting material. Furthermore, eight oil mills of large and medium capacity will be installed and a gene bank and propagation center will be set up. Product promotion and marketing activities will be also launched, in cooperation with private sector stakeholders.   "]
[2015,"October","PERU – land use policy:  To prevent the further clearing of primary rainforest in the country’s Amazon basin, the government intends to put land use decisions, including concessions for oil palm plantations, under federal rather than local authority. The move is meant to allow the implementation of strict land use rules, such as limiting new oil palm plantations to already deforested or degraded areas. In Peru, oil palm development is reported to have gathered speed since the government decided in 2003 that the production of biofuels, comprising palm oil-based biodiesel, should be a strategic priority. "]
[2015,"October","PHILIPPINES – biodiesel policy:  The Philippine Palm Oil Development Council welcomed government plans to increase mandatory blending of diesel with biodiesel from 2 percent to 5 percent, as it would pave the way for the development of the country’s nascent oil palm industry, industry officials said (see also MPPU Feb.’14). A higher blending rate is anticipated to boost demand for palm oil, a cheaper biodiesel feedstock than coconut oil. Reportedly, for the time being, the transition to the higher blending rate remains conditional on the findings of a commissioned study and the final recommendations of the National Biodiesel Board (see also MPPU Jan’15).",null,null," "]
[2015,"October","RUSSIAN FEDERATION – import/GMO policy:  Russia’s Federal Service for Veterinary and Phytosanitary Surveillance temporarily suspended the importation of animal/fish feed products from selected EU companies whose consignments were found to contain undeclared GM-soybean lines. While the Russian Federation allows the importation of feedstuffs containing GM material, all GMO content of feeds needs to be formally notified as a part of the feed registration process."]
[2015,"October","SRI LANKA – import policy:  To provide relief to the domestic coconut industry, the government increased the special commodity levy applicable to edible oil imports by LKR 20/kg (USD 0.14). Effective 25 September, the new levy on crude edible oils amounts to LKR 110/kg (USD 0.78) and that on refined oils to LKR 130/kg (USD 0.93)."]
[2015,"October","THAILAND – market regulation:  The government lowered the reference farm-gate price paid by millers for fresh oil palm fruit to Baht 3.20/kg (USD 0.09), compared to the Baht 4–5 price range in place during the last 2–3 years. The price was lowered in response to recent surges in domestic palm oil stocks, which has driven the free market price for oil palm fruit  below Baht 3.00/kg. The government regularly holds consultations with farmer representatives, processors and consumers to coordinate measures to stabilize domestic palm oil supplies and prices (see MPPU July ’15).       "]
[2015,"October","South–South cooperation – The Philippines / Rep. of Fiji:  The two countries signed a memorandum of understanding to cooperate in the development of Fiji’s coconut industry. Under the agreement, stakeholders in Fiji will receive assistance from specialized partner agencies in the Philippines in the fields of high-quality planting material, inter-cropping practices, and export-oriented coconut product processing.     "]
[2015,"October","Research and Development - Biodiesel production:  U.K. researchers devised a technology to increase productivity in biodiesel production by recycling a by-product. Reportedly, crude glycerol – a by-product of the vegetable-oil-to-biodiesel conversion process that employs methanol derived from fossil fuel – can be turned back into methanol, which can then be used as a starting reactant to create more biodiesel. Apart from lowering production costs, the technology is said to offer significant environmental benefits by sustainably improving the yield of biodiesel in a way that doesn’t require additional fossil fuels."]
[2015,"October","Research and Development - Non-GM soybean variety:  In the United States, a new non-GM high-protein soybean variety is ready to be commercially launched with the name ‘UA 5814HP’. The variety, whose protein content is said to range 5% above that of other conventional soybean lines, has been developed in Arkansas to fit the needs of livestock producers, especially the poultry industry. Reportedly, the new product targets an emerging market, catering for growing interest for non-GM soybeans (see also MPPU July’15). "]
[2015,"October","Sustainable sourcing policies:  US consumer and professional products company Clorox and Mexico-based bakery firm Grupo Bimbo joined the list of companies that committed to responsible and traceable sourcing of palm oil, while US agribusiness company Bunge pledged to eliminate deforestation from across its agricultural supply chains, including soybeans, following on from similar commitments made regarding palm oil. Reportedly, the companies are working on time-bound action plans to operationalize their commitments, including verification of compliance via regular progress reports.                        "]
[2015,"November","BRAZIL – biodiesel policy:  Brazil’s Council of Energy Policy (CNPE) authorized, effective 1st January 2016, the voluntary use – by certain consumer groups – of biodiesel blends exceeding the mandatory blending rate of 7 percent. Public and corporate transport fleets will be allowed to use biodiesel blends of up to 20 percent (B20), while 30 percent blends (B30) will be permitted in rail transport, agriculture and industrial uses. Furthermore, the ruling allows for experimental use of pure biodiesel (100 percent). Until specific assurances are provided by the car and machine manufacturers, the higher blends will not be available at public pumps.  Government plans to increase mandatory blending from 7 percent to 10 percent in 2020 remain in place. According to market experts, the voluntary use of B20 and B30 could lift Brazil’s annual biodiesel consumption from 3.6 million tonnes currently, to 4.1–4.2 million tonnes. The higher blends would imply higher domestic demand for soyoil (the predominant biodiesel feedstock), which may lower Brazil’s soyoil export availabilities. Brazil’s installed biodiesel production capacity is now estimated at 6–7 million tonnes per year."]
[2015,"November","CHINA – food standards:  China’s National Health and Family Planning Commission (NHFPC) notified the WTO of revised standards for edible meals derived from oilseeds other than rapeseed and cottonseed (as well as from wheat, maize, rice and certain leguminous crops). The new standard for protein meals used in the food industry redefines the products concerned, modifies the existing sensory requirements and sets new contaminant/toxin limits. The NHFPC also submitted a revised code of hygienic practices in the production of edible vegetable oils and fats. The modified code specifies essential requirements and management rules applying to procurement, processing, packaging, storage and transport and marketing. Comments on the two standards have been invited. Dates of entry for the new standards still have to be determined."]
[2015,"November","EUROPEAN UNION – GMO policy: The European Parliament rejected a draft law – tabled by the European Commission in April 2015 (see MPPU May & Aug.’15) – that would have enabled individual EU member states to restrict The European Parliament rejected a draft law – tabled by the European Commission in April 2015 (see MPPU May & Aug.’15) – that would have enabled individual EU member states to restrict or ban the sale and use of EU-approved GMO food or feed on their respective territories. The rejection was based on concerns that the law could prove unworkable and run counter the bloc’s single market principles. Reportedly, in addition to requiring the re-introduction of border checks between member countries, the law could have hurt the EU’s agricultural sector – which depends heavily on protein supplies, especially GM soybean meal imported from outside the EU – and have negative repercussions on trade. The European Commission informed that it will not withdraw its proposal. Hence, the draft law will now be submitted to the European Council for comment. The EU’s feed and food industry welcomed the Parliament’s rejection, reiterating that the proposed legislation would distort competition in the bloc’s internal market and hurt EU food production. An impact assessment study undertaken by the industry suggests that substituting GM soy with conventional soy would lead to a 10 percent increase in feed costs, strongly affecting the competitive position of livestock industries in countries banning GMOs, both in their domestic market and their respective export destinations (considering that, on the global market, demand for non-GM-fed animal products is rather small)."]
[2015,"November","EUROPEAN UNION – olive oil import access:  National olive oil organizations and the EU’s umbrella federation of agricultural producers criticized the European Commission’s plan to raise Tunisia’s duty-free import quota for olive oil (see MPPU Oct.’15). Allegedly, the measure would give Tunisian producers an unfair advantage and hit the European olive oil sector badly at a time of saturated markets and low farm gate prices. Meanwhile, EU officials informed that the EU and Tunisia have opened negotiations on a bilateral ‘Deep and Comprehensive Free Trade Area’– aimed at further improving Tunisia’s access to the EU’s food and non-food markets. The new agreement would replace the ‘Association Agreement’ in place since 1995."]
[2015,"November","INDIA – import policy – Butter:  Effective from 5th October 2015 to 31st March 2016, India’s ad valorem import tariff for butter, butter oil and ghee (clarified butter) will be set at 40 percent, compared to 30 percent previously. Private sources reckon that the measure was taken to protect local producers from cheap imports, following recent falls in world prices."]
[2015,"November","INDIA – import policy – Palm oil:  Government officials excluded the possibility of hiking the country’s import duty on crude palm oil to protect the country’s infant oil palm industry from low-priced imports. Local producer associations, who had asked for a four-fold increase in import tariffs, have been told that such drastic rises would be perceived as a barrier to international trade. While a small increase in duties has not been ruled out yet, the government is also examining the possibility of introducing temporary income support payments, official sources reported. In the meantime, farmers have been urged to explore means to lower production costs, in particular with regard to irrigation (see also MPPU July & Sep.’15). "]
[2015,"November","INDIA – biodiesel policy:  As an additional measure to encourage domestic biodiesel production and consumption, the government decided to exempt raw materials used for biodiesel production – i.e. oil and fat derivatives, methanol and sodium methoxide – from central excise duties. Biodiesel is already exempted from excise duties in its own right. Since 2014, the government has raised its efforts to promote domestic biodiesel consumption – see MPPU Dec.’14 & Apr.’15. Last August, it launched the sale of B5 (blends of conventional diesel with 5 percent biodiesel) in certain retail outlets of state-run oil marketing companies."]
[2015,"November","INDONESIA – soybean production support:  Amid renewed government efforts to raise the level of food self-sufficiency in Indonesia, the agricultural ministry has proposed to introduce a 10 percent import tariff on soybean imports as well as to raise the government-set floor price for soybeans from presently IDR 7 700 per kg (USD 570 per tonne) to IDR 8 500 per kg (USD 620 per tonne). In Indonesia, where soybeans are mostly processed directly into staple foods (notably tofu and tempeh), only modest gains in domestic production have been achieved in recent years, and almost 60 percent of local consumption is met by imports. The newly proposed measures are meant to stimulate domestic production, while protecting soy farmers from low-priced imports. In recent years, soybean imports have been subject to a 5 percent import tariff, although the duty was repeatedly suspended to check surges in food retail prices. As to farm-gate prices, private sources report that actual prices tend to range well below the government-set floor price for soybeans. Reportedly, limited access to land, irrigation, storage facilities and fertilizer also impair domestic production growth.  "]
[2015,"November","INDONESIA / MALAYSIA – bilateral palm oil cooperation:  Recent bilateral talks between Malaysia and Indonesia (see MPPU Sep.’15) resulted in plans to set up an intergovernmental organization of palm oil producers named Council of Palm Oil Producing Countries (CPOPC). Meant to foster cooperation between producing countries, the new body would be tasked to control production and manage stocks across participating countries, with the goal to stabilize prices. Malaysia and Indonesia, who control 85 percent of the global palm oil market, said that other producing countries, notably Thailand, would be invited to join the new body. Reportedly, the council would also support the development of downstream industries, promote the image of palm oil, and foster the harmonization of production standards. Regarding the widely debated issue of environmentally and socially sustainable production practices, the Council would advocate the creation of standards that also take into consideration the welfare of smallholders, said Indonesian government officials – reflecting concerns that zero-deforestation pledges recently signed by leading palm oil companies could hurt smallholder producers who are not ready to adopt sustainable forestry practices. In Indonesia, smallholders account for about 40 percent of total palm oil production.  "]
[2015,"November","MALAYSIA – palm oil market regulation: On 6th October, government officials announced that import volumes of palm oil would be controlled with immediate effect to curb rising domestic stocks and thus prevent domestic prices from falling further. Imports would be minimized but not banned, with long-term or previously signed contracts being allowed to continue. Details on how imports would be cut and for how long were not available. In recent years, Malaysia imported between 0.3 and 1.6 million tonnes of palm oil to improve domestic supplies. However, last September, domestic inventories climbed to a 2.6 million tonnes peak, causing a sharp drop in prices. The government’s decision to restrict imports follows other measures to reduce domestic inventories, including encouraging domestic biofuel consumption and implementing an oil palm replanting programme (see MPPU July & Oct.’15)."]
[2015,"November","Trans-Pacific Partnership (TPP) agreement:  Oilseed growers and processors in Canada and the United States welcomed the successful conclusion, in early October, of the TPP trade agreement, which involves twelve nations and nearly 40 percent of the global economy. Reportedly, once implemented, the TPP will provide new export opportunities for the U.S. soybean and groundnut industry and Canada’s rapeseed sector. Producers and processors of these commodities are expected to make considerable gains as trade partners in Asia, particularly in Japan, Vietnam and Malaysia, remove their tariffs and address non-tariff barriers related to phytosanitary and GMO-restrictions. Considering that the trade pact still needs to be signed by heads of government as well as ratified by parliaments and that implementation of the deal will take several years, its overall impact will not be known for some years."]
[2015,"November","Futures markets  –  Chicago Mercantile Exchange (CME):  Following a customary semi-annual review, daily price limits for CBOT (Chicago Board of Trade) soybean and soymeal futures have been lowered from November 1st. For soybeans, the limit dropped from USD 0.70 to 0.60 per bushel, and for soymeal from USD 0.25 to 0.20 per short tonne. For soyoil, the limit has remained unchanged. Under CBOT rules, the daily price limits for oilseeds (as well as grains) are reviewed in May and November of each year, based on a percentage of the average settlement price of benchmark contracts during a nine-week observation period.      "]
[2015,"November","Futures markets – India:  The Securities and Exchange Board of India (SEBI) ruled out the possibility of restricting futures trade in soybeans at the national-level on-line exchange NCDEX (National Commodity & Derivatives Exchange). The country’s soy processing industry called for restrictions to be imposed after forward prices surged in October, allegedly due to excessive speculation at futures exchanges. Reportedly, the sudden surge in prices is hurting soy processors, which have to pay more for the raw material while prices for soybean oil and meal are depressed due to falling prices of competing products. SEBI stated that NCDEX’s soybean contract is well regulated and enjoys wide participation of varied value chain participants. The exchange’s regulatory framework, which includes stringent trade limits and margins, was said to ensure transparent and fair price discovery.\n"]
[2015,"November","Biofuel developments – Hydro-treated vegetable oil (HVO): Swedish truck/bus manufacturer Scania has given green light for the use of HVO in its latest generation of engines, stating that HVOs do not affect its vehicles’ characteristics and maintenance requirements. Hydro-treating of vegetable oils or animal fats is an alternative process to esterification for producing bio-based diesel fuels. Commonly referred to as ‘renewable diesel fuels’ (as opposed to esterification-based ‘biodiesel’), HVOs are straight chain paraffinic hydrocarbons that are free of aromatics, oxygen and sulfur and have high cetane numbers. Allegedly, HVOs do not have the unfavourable effects of ester-type biodiesel fuels, like increased mono-nitrogen oxides emission, deposit formation, storage stability problems, more rapid aging of engine oil or poor cold-flow properties. \n"]
[2015,"November","Biofuel developments – Methanol substitution in ester-type biodiesel:  In the Islamic Rep. of Iran, researchers developed a process to produce biodiesel without using fossil-based methanol. The scientists replaced methanol, a key component in standard transesterification reactions, with bio-ethanol obtained from plant residues, thus using exclusively renewable products. In the research trials, a single raw material – the castor plant – was used to obtain both vegetable oil (extracted from the seeds) and ethanol – obtained via a bio-refinery process from plant residues, mainly stems, leaves and seedcake."]
[2015,"November","High-oleic soybeans – United States: According to private sources, in the United States, the acreage of high-oleic soybeans has surpassed 100 000 hectares across nine states and is on its way to achieving the industry target of over 7 million hectares by 2023. Developed using conventional non-transgenic breeding methods, high-oleic varieties are said to have the same yield potential as traditional soybeans, while offering a premium to farmers thanks to the high value of their oil (see also MPPU Apr. & July’15).       "]
[2015,"November","Non-GM oilseed markets – Non-GM rapeseed – Australia: Private sources consider the West-Australian market for non-GM rapeseed to be at risk, following the discovery of GM plants at different sites of a metropolitan area – in some cases more than 100 km away from the closest grain farm. Considering that the GM plants grew along key trucking routes, their emergence is likely the result of seed spillage during transport. The finding highlights challenges of keeping   GM and non-GM rapeseed separate for the export market. Australia is one the EU’s leading suppliers of non-GM rapeseed."]
[2015,"November","Non-GM oilseed markets – Non-GM soybean – Germany: Global agri-trade firm ADM Co. announced that it will invest in switch-capacity in its rapeseed crushing facility in Southern Germany, so as to be able to also process locally-sourced non-bioengineered soybeans. By doing so the company hopes to cater for the growing local market for non-GM soymeal\n\n\n\n"]
[2015,"November","Palm oil sourcing:  US food company McDonald’s pledged to eliminate deforestation from its global supply chain and announced that, by 2020, 100 percent of the palm oil used in its restaurants worldwide would be sourced through systems that support sustainable palm oil production. "]
[2015,"December","ARGENTINA – agricultural policy:  The newly elected government, which has taken office on 10 December 2015, has pledged to cut export taxes and state controls on the country’s main agricultural export products. For wheat, maize and beef, this would entail an immediate lifting of export quotas and duties. For oilseeds, the immediate removal of the export tax concerns only sunflowerseed and groundnut (and their subproducts),while taxes on soybeans, soyoil and soymeal are to be lowered progressively, starting next year, by 5 percentage points each year, until their complete elimination over a seven-year period. Argentina’s new president also vowed to lift currency controls, a move that could lead to a substantial devaluation of the country’s currency. If fully implemented, these measures will likely have significant impacts on domestic and international markets. In the short term, the proposed changes could spur exports of soybeans, which have been held up in recent months."]
[2015,"December","ARGENTINA – biodiesel policy:  Effective October 2015, Argentina’s biodiesel export tax was lowered to 3.3 percent, down from the 9.8 percent in place since May 2015. The new rate is the lowest since the government introduced its variable tax system in 2012. The duty has been reduced to support the country’s export-oriented biodiesel sector, which is struggling to survive, amid depressed fossil oil prices and the imposition by the EU, of anti-dumping tariffs. With few alternative markets, Argentina’s biodiesel production has fallen sharply, resulting in a capacity utilization rate of only 40 percent. In addition to lowering taxes, the government also reduced the domestic biodiesel reference prices by one percent, with a view to stimulating local biodiesel consumption."]
[2015,"December","BRAZIL – biodiesel policy:  A special committee in Brazil’s Upper House endorsed a plan to raise mandatory blending of biodiesel into diesel fuel to 10 percent over the next three years – up from the 7 percent mandated since November 2014. The draft bill would also compel diesel-powered public transport vehicles in large cities to use 20 percent biodiesel. The draft legislation is now going to be discussed by the Lower House."]
[2015,"December","EUROPEAN UNION – disease control:  The European Commission has allocated EUR 7 million (USD 7.7 million) to foster research into xylella fastidiosa, a bacterial disease blamed for the devastation of olive trees in Southern Italy (see MPPU Aug’15). The purpose is to contribute to efforts to tackle the disease before it spreads to other key olive-producing regions in the EU or to other commercially important crops. Funding will be provided to research projects that focus on the ability and methods of detecting the pathogen and on improved prevention and control measures. EU member states have also expanded the list of potential host plants whose sales will be subject to strict regulations and controls. Moreover, EU members will be required to conduct awareness raising campaigns and to prepare contingency plans to ensure full preparedness in case of new disease outbreaks."]
[2015,"December","EUROPEAN UNION – marketing regulations:  The European Commission adopted new guidelines on how specific derogations from EU antitrust rules apply to groups of farmers selling arable crops, bovine meat and olive oil. According to the new rules, farmers fulfilling certain conditions will be allowed to sell their products jointly – setting prices, volumes and other terms without contravening the competition rules. The measure is meant to ensure that farmers can join forces to remain competitive and strengthen their bargaining power, in a context of increased concentration at the processing and retailing stages of the chain."]
[2015,"December","INDIA – price support:  Minimum support prices for Rabi crops (which are sown now for harvest in the first half of 2016) have been raised compared to last season’s level. For oilcrops, they were set about 8 percent higher, at INR 3350 per quintal (USD 500 per tonne) for rape and mustardseed, and at INR 3300 per quintal (USD 493 per tonne) for safflowerseed. Support prices have been lifted by similar rates for pulses, but by only 6.5 percent for barley and 5.2 percent for wheat. Furthermore, in order to strengthen the procurement mechanism for oilseeds and pulses, the Food Corporation of India (FCI) has been designated as the central nodal procurement agency for these crops. As per official documents, losses incurred in the procurement process may be reimbursed by the central government."]
[2015,"December","TURKEY – GMO imports:  Turkey’s Biosafety Board approved two more GM soybean (and six GM maize) varieties for feed use. In July 2015, the board had cleared the first GM traits since 2011 (see MPPU Sep.’15). Five more GM soybean events and four GM rapeseed events are currently under review."]
[2015,"December","UNITED STATES – support payments:  USDA announced that nearly USD 4 billion will be channeled to farmers whose revenues have dropped below five-year average levels in the 2014 crop year. The safety-net payment will be provided to producers that adhered to either the Agricultural Risk Coverage (ARC) or the Price Loss Coverage (PLC) programmes introduced under the 2014 Farm Bill (see MPPU Feb.’14 and Mar.’15). Crops receiving assistance include soybeans and groundnuts."]
[2015,"December","UNITED STATES – GMO labeling policy:  While a bill regulating GM labeling in food products is under discussion in the US Congress (see MPPU Aug.’15), the US Food and Drug Administration (FDA) has issued a set of guidelines on voluntary labeling, inviting public comment. The detailed guidelines, which reflect the agency’s current thinking and are not mandatory, outline some recommended actions for manufacturers wishing to voluntarily label their food products, as containing ingredients from genetically engineered, or non-genetically engineered, sources. Based on current law, companies are free to label their products for either the absence or the inclusion of GM ingredients. However, the FDA can enforce labeling of GM content when there is a material difference – such as a different nutritional profile – between the GM product and its non-GM counterpart."]
[2015,"December","UNITED STATES – biofuel policy:  The US Environmental Protection Agency, EPA, finally set mandatory biofuel volumes (and associated percentage standards that are used by producers to calculate their individual compliance obligations) for the period 2014–2016 (see also MPPU July & Aug.’15). While the volumes for all types of biofuel are above those proposed by EPA in June 2015, the new standards still fall short of the target set by the US Congress in 2007. Allegedly, constraints in the marketplace have made the targets laid out by Congress impossible to achieve. EPA considers the new standards to be sufficiently ambitious to stimulate renewable fuel production and to sustain the growth of the country’s biofuel industry. The total renewable fuels volume for 2016 has been targeted at 18.11 million gallons, which translates into a biofuel-to-fuel mix of 10.1 percent. For biomass-based diesel (which comprises biodiesel and renewable diesel), volumes have been fixed at 1.9 million gallons in 2016 and at 2.0 million gallons in 2017, which corresponds to admixture rates of 1.5 percent and 1.6 percent, respectively."]
[2015,"December","UNITED STATES – export promotion:  New funding has been made available through the USDA Market Access Program (MAP) and Foreign Market Development Program (FMD) to assist agricultural commodity organizations in their efforts to expand commercial exports. Oilseed associations that have been awarded funding (provided they also contribute own funds) are: the American Soybean Association, the American Peanut Council, and the National Sunflower Association."]
[2015,"December","ZAMBIA – import policy:  The government decided to lift the import ban on edible oils introduced in March 2015 (see MPPU Aug.’13 & Apr.’15). Starting this November and until January 2016, registered importers will be allowed to import up to 1 000 tonnes of oil per month. The measure aims to stabilize domestic cooking oil prices, which sharply increased after the introduction of the import ban, harming consumers"]
[2015,"December","Sector development measures – India – palm oil:  The government allowed 100% foreign direct investment in five plantation crops, including palm oil and olive oil – a concession so far only extended to tea plantations. The measures, which will allow foreign companies (for example large Indonesian or Malaysian firms) to own plantations or form partnerships with domestic stakeholders, aims at stimulating India’s oilcrop production, thereby helping to reduce the country’s edible oil deficit (see also MPPU July & Sep.’15). While the industry welcomed the policy change, private sources stated that its impact could be much larger if the government also exempted the crops from land ceiling norms, a step that would allow the establishment of large-scale plantations in addition to the present contract farming mode."]
[2015,"December","Sector development measures – Philippines – used cooking oil:  The city of Davao, Philippines, together with public and private entities from Japan, launched a project to collect used cooking oil (UCO) from households and businesses for biodiesel production. Reportedly, although UCO is classified as toxic and hazardous, it is currently sold on the city’s black market."]
[2015,"December","Adulterated edible oil –  Italy – olive oil:  Seven well-known olive oil brands are under investigation in Italy for allegedly selling ordinary olive oil as superior, 30–40 percent more expensive, “extra virgin oil”. State-owned laboratories have downgraded the oils based on organoleptic defects that were confirmed by chemical and physical analyses. Health risks have been excluded as none of the substances in the products appeared to be harmful to human health. If found guilty of deceptive practices, the companies concerned could face massive financial penalties. Market experts said that record imports of (low quality) olive oil following last year’s crop failure has encouraged fraud. Italy is the world’s top consumer and second largest producer of olive oil."]
[2015,"December","Adulterated edible oil – Ghana – palm oil:  Ghana’s Food and Drug Authority has confiscated large amounts of palm oil adulterated with industrial dye. Consumers have been invited to buy their oil only from trusted sources. Reportedly, Sudan III and Sudan IV, the non-authorized dyes used to enhance the colour of palm oil, are potentially carcinogenic when mixed with food."]
[2015,"December","Pesticide regulations – Glyphosate:  The European Food Safety Authority and EU Member States conducted a re-assessment of glyphosate, a chemical found in pesticides used on grains and oilcrops worldwide. The study concludes that glyphosate is unlikely to pose a carcinogenic hazard to humans and proposes new safety measures to tighten the control of glyphosate residues in food. The findings will be used by the European Commission to decide whether to keep glyphosate on the EU list of approved active substances, and by EU Member States to re-assess the safety of pesticide products containing glyphosate used in their territories. Reportedly, EFSA’s evaluation has considered a large body of evidence, including a recently published report by the International Agency for Research on Cancer, which classified glyphosate as probably carcinogenic to humans (see MPPU Apr.’15)."]
[2015,"December","Pesticide regulations – Enlist Duo:  The US Environmental Protection Agency, EPA, has asked a US court to revoke its own registration of the herbicide ‘Enlist Duo’ (see MPPU Nov.’14). The weed-killer is used on soybean and maize varieties that have been genetically modified to tolerate the pesticide. EPA’s earlier approval had been tied to a number of restrictions to address potential environmental and health hazards. New information has led EPA to believe that the two chemicals contained in Enlist Duo – 2.4-dichlorophenoxyacetic acid and glyphosate – could be more toxic on non-target organisms than originally thought because the two substances may amplify each other’s effects. Reportedly, this is the first time EPA has asked a court to annul a decision it had made on a pesticide."]
[2015,"December","Pesticide regulations – Sulfoxaflor:  EPA has issued a cancellation order for all previously approved pesticides containing sulfoxaflor, a substance deemed to be toxic for bees. The order has come in response to a US court finding that EPA had improperly approved the pesticide used on oilseeds and other crops. Sulfoxaflor belongs to the neonicotinoid family, a class of pesticides that has been banned in the European Union and subjected to strict controls in Canada (see MPPU June’13 and July&Sep.’15)."]
[2015,"December","Pesticide regulations –  Chlorpyrifos: In a US court opinion, EPA has been criticized for its delay in making a decision on whether to ban agricultural use of chlorpyrifos, an insecticide shown to pose risks to human health. Chlorpyrifos is primarily used on maize but also on soybeans and other crops."]
[2015,"December","GMO permits – Mexico:  Mexico’s Supreme Court suspended a permit granted to seed company Monsanto to farm GM soybean in the states of Campeche and Yucatan, maintaining that indigenous communities who had opposed the move ought to be consulted first. Reportedly, concerns were raised that the cultivation of GM soy could put honey production at risk due to the use of the herbicide glyphosate."]
[2015,"December","Futures markets trading rules:  The Chicago Mercantile Exchange fined and temporarily suspended a futures trader for violating Chicago Board of Trade rules. The trader engaged in entering orders for soybean futures contracts without the intent to trade. The practice – also known as ‘spoofing’ – is considered inconsistent with just and equitable principles of trade."]
[2015,"December","Research and development – oil palm:  Reportedly, the discovery of a genetic defect in oil palms could help raising yields. While studying the oil palm genome, a group of scientists has identified a transposable element that is responsible for useless dried-out (or “mantled”) fruit. A simple, leaf-based test has been developed to identify the harmful DNA sequence, thus allowing growers to eliminate worthless saplings before they are planted in the field. Normally, growers need to wait until a palm reaches maturity to find out whether it carries the defect."]
[2015,"December","Sustainable palm oil – market uptake –  Europe:  FEDIOL, the federation representing the European vegetable oil industry, monitors the use of certified sustainable palm oil reported by its members, in particular companies that refine vegetable oils. According to the federation, in 2014, about 47 percent of the palm oil entering refining plants was certified as sustainable – a share that increased to 55 percent in the first two quarters of 2015. Reportedly, ‘book&claim’ mechanisms like GreenPalm trade certificates are excluded from FEDIOL’s calculations, which only comprise mass-balance, segregated and identity preserved trade (see also MPPU Dec.’13). The federation, with the support of its members, intends to up-date these figures regularly in support of the RSPO plea for achieving, by 2020, 100% sustainable palm oil supply in Europe."]
[2015,"December","Sustainable palm oil – market uptake – United Kingdom:  In 2012, UK trade associations, NGOs and the UK government committed to work towards achieving 100% sourcing of credibly certified sustainable palm oil by the end of 2015. A report published by the UK Government tracks progress towards meeting this commitment by estimating the consumption of sustainable palm and palm kernel oil in the country. Findings indicate that purchases supported by credible certification have increased steadily since 2009. In 2014, certified imports by UK companies were equivalent to 70–90 percent of the country’s total palm and palmkernel oil imports (excluding derivatives and finished goods). It is important to note that the figures used in the report include trade in GreenPalm certificates, a ‘book&claim’ mechanism that contributes only indirectly to sustainable production as it bypasses the physical supply chain, hence not allowing product segregation and traceability (see MPPU Dec.’13)."]
[2015,"December","Sustainable palm oil – RSPO policies:  The Roundtable on Sustainable Palm Oil (RSPO), the world’s leading body for sustainable palm oil certification, informed about new measures taken to enhance the effectiveness of its work, namely:\n• launching of ‘RSPO-Next’, a voluntary addendum to the body’s core principles and criteria, meant to meet the needs of growers that decide to commit to zero deforestation, zero peatland conversion and respect for human rights (see also MPPU July’15);\n• pledges by the governors of Sabah (Malaysia), Central Kalimantan (Indonesia) and South Sumatera (Indonesia) to introduce jurisdictional certification, meaning that all palm oil produced within their jurisdiction will be certified sustainable (see also MPPU July’5);\n• steps to ensure the quality, oversight and credibility of RSPO assessments regarding the establishment of new plantations, in particular with respect to protecting ‘high conservation value’ (HCV) areas and to seeking ‘free prior and informed consent’ (FPIC) from customary land owners;\n• introduction of remediation and compensation procedures to address cases of land cleared without prior HCV assessment;\n• heightened efforts to address challenges faced by smallholders;\n• measures to improve the quality, accuracy and timeliness of information submitted by members, including sanctions in case of non-compliance; and\n• first steps by China to implement guidelines on sustainable palm oil, as well as China–United Kingdom bilateral collaboration in promoting the trade and consumption of sustainable palm oil in China."]
[2016,"February","ARGENTINA – trade policy:  During the second half of December 2015, Argentina’s incoming government followed up on its pledge to liberalize trade in agricultural commodities (see MPPU Dec’15). With respect to oilseeds, the export tax on soybeans and soybean products was immediately lowered by 5 percentage points, with further reductions to be effected in the coming years until its complete elimination. In 2016, soybean and soyoil/meal exports are taxed, respectively, 30 and 27 percent. By contrast, the tax on sunflower seed/oil/meal (35 percent), groundnuts (5 – 23.5 percent) and groundnut oil (5 percent) has been eliminated in a single go – as for wheat, maize and beef. Furthermore, the export quotas for wheat and maize have been removed and the export permit system for grains and oilseeds replaced with a mechanism tracking exports. With regard to imports, the government simplified the procedure for soybeans imported (notably from Paraguay and Brazil) for subsequent exportation in the form of oil and meal, a  measure meant to facilitate domestic crushing when local processors work below capacity, i.e. the weeks preceding domestic harvesting. Further measures by the government included a lifting of all currency controls, which, by causing an almost 45 devaluation of the Argentine peso, enhanced the competitiveness of Argentina’s commodities in world markets and improved farmer returns. Market observers, expect grain and oilseed exports to expand sharply in the coming months, as producers go ahead with sales that were held up in anticipation of possible policy changes or as a means of hedging against inflation. Furthermore, in the 2016/17 season, farmers are likely to expand plantings of wheat and maize (the two products benefiting most from the reforms), possibly at the expense of soybeans. "]
[2016,"February","AUSTRALIA – biodiesel policy:  The government of Queensland, the country’s third most populous state, ruled that biodiesel and renewable biodiesel have to make up 0.5 percent of local diesel sales as of mid-2017 – following the example of New South Wales, where diesel sales contain 2 percent of biodiesel since 2010. At the same time, the federal government is continuing its gradual phasing-out of support provided to biofuel producers in the form of subsidies and tax concessions (see MPPU June’14 & July’15)."]
[2016,"February","BANGLADESH – market regulation:  The government together with representatives of the country’s vegetable oil refiners and traders agreed to cut the wholesale price of cooking oil by BDT 5 a liter (0.6 US cent), or about 5 percent. The measure is meant to ensure that consumers benefit from the on-going decline in international vegetable oil prices. In Bangladesh, where imports account for about 85 percent of domestic edible oil consumption, consumer protection measures were last implemented during 2011–2012 to shield consumers from surges in international prices (see MPPU Mar.’11 & Sep.’12)."]
[2016,"February","CHINA – rapeseed oil state auction:  Sales from state reserves of rapeseed oil, which are estimated to total 4–6 million tonnes, resumed in December 2015. Out of 64 000 tonnes offered, only 57 percent were sold, seemingly reflecting quality issues, as part of the produce offered had been kept in storage since 2009. Last year, the government decided to phase-out public procurement of rapeseed (see MPPU July’15)."]
[2016,"February","CHINA – international trade:  After acquiring, in 2014, a 51-percent stake in the agribusiness unit of global trading firm Noble Group (see MPPU May’14), China’s state-owned grain trader and processor COFCO is now expected to acquire Noble Agri’s remaining 49 percent stake – a move meant to consolidate the country’s presence in international grain and oilseeds markets."]
[2016,"February","EUROPEAN UNION – health policy:  The European Commission has issued a report on trans fatty acid (TFA) in food and in the overall diet of Europeans. Partially hydrogenated oils are the primary dietary source of industrial TFA (as opposed to TFA naturally present in food products made from ruminant animals). While the report acknowledges that over the last ten years TFA levels have decreased in the majority of food products in many member states, it also highlights the need to address remaining hotspots in some food products and population groups. Setting an EU-wide legal limit for industrial TFA content is seen as the most effective measure to foster public health and consumer protection while guaranteeing the compatibility with EU single market rules and limiting the burden on food producers. Alternatives measures considered included: (i) mandatory TFA content declaration, which was not recommended on the ground that it is not well understood by consumers; and (ii) voluntary industry agreement towards reducing TFA in foods and diets, which was deemed to be ineffective. The Commission announced that it will soon launch a public consultation to collect more information and carry out a full impact assessment, with a view to facilitate future policy decisions. FEDIOL, the federation representing Europe’s vegetable oil industry, welcomed the report, adding that a 2 percent TFA limit would both address health concerns and ensure a level playing field across the EU (see also MPPU May’14).    "]
[2016,"February","EUROPEAN UNION – GMO policy:  The Commission’s proposal to enable individual EU member states to restrict or ban the sale of EU-approved GMO products on their respective territories has been screened by the legal service of the European Council. The latter expressed serious doubts about the draft law’s compatibility with both the bloc’s single market principle and WTO rules. Last year, the proposal was rejected on similar grounds by the European Parliament, in addition to being criticized by the biotechnology industry and anti-GMO campaign groups alike (see MPPU Nov.’15)."]
[2016,"February","EUROPEAN UNION / TUNISIA – olive oil trade:  The Commission’s proposal to raise Tunisia’s duty-free tariff rate quota for olive oil for two years has been backed by the European Parliament’s trade committee, provided an assessment is conducted after the first year to ascertain the measure’s impact on the EU olive oil market and to consider corrective measures if necessary. Should the proposal be adopted by the Parliament plenary, it will be transmitted to the European Council for final review (see also MPPU Oct.&Nov.’15)."]
[2016,"February","INDIA – sector development support:  India announced the launch of dedicated programmes to promote the production of oilseeds and pulses across the country. The new initiative is supposed to be financed jointly with state governments. Details have yet to be released. The last comprehensive, country-wide, support programme for oilcrops was launched back in 2013 (see MPPU Nov.’13), although a number of smaller initiatives focusing on individual oilcrops, such as oil palm, olive tree and sunflowerseed, have been implemented more recently. During the last 15 years, domestic demand for oilcrop products, especially edible oil, expanded considerably faster than oilcrop production, leading to steep rises in India’s imports.     "]
[2016,"February","INDIA – agricultural policy:  In January 2015, the central government approved a new crop insurance scheme, which is to replace the three existing national farm insurance programmes. The major crops insured will be oilseeds, rice, wheat, pulses and coarse grains. The new scheme is supposed to be in place by June, in time for the 2016 Kharif season. By 2018-19, the federal budget for crop insurance is set to climb to INR 77.5 billion (USD 1.14 billion), more than double the current spending level. The increase in outlays will be used to subsidize farm insurance premiums by almost 80 percent, up from the current 45-70 percent. Over the next two-to-three years, the government hopes to raise the area covered by the programme from 23 percent to 50 percent of total area cropped. Participating farmers will be expected to pay premium rates of 2 percent for Kharif crops and of 1.5 percent for Rabi crops, which compares to 3.5–8 percent under the existing programmes and to market-based rates of 10–12 percent for Kharif crops and of 8–10 percent for Rabi crops. Besides low premiums, new mechanisms are planned to ensure that crop losses are assessed and claims settled in a timely manner. Moreover, it is envisaged to expand the range of risks covered, to remove the existing caps on sums insured and to improve the process of determining crop losses by carrying out local level assessments. The government’s initiative is significant as the country is facing drought for the second straight year due to poor monsoon rains – a cause of major distress to farmers. Independent observers have highlighted the multiple challenges involved in providing insurance to small and marginal farmers, who cultivate plots of less than 2 hectares."]
[2016,"February","INDONESIA – variable palm oil export tax:  With palm oil reference prices remaining below the trigger level of USD 750 per tonne, Indonesia’s export tax for crude palm oil will be kept at zero in February 2016. The export tax has been suspended since October 2014."]
[2016,"February","INDONESIA – market policy:  The government has cleared soybean imports by BULOG, the state-run National Logistics Agency, during 2016. BULOG will be in charge of selling soybeans on the domestic market to stabilize local soyfood prices. Volumes to be imported have not been specified. All imports have to be associated with an equal amount of purchases of locally grown soybeans. Similar policies have been implemented in past years, with a view to stimulate local production (see MPPU Dec.’13 & Feb.’14)."]
[2016,"February","INDONESIA – environmental policy:  The government has set up an agency tasked with restoring some 2 million hectares of damaged peatland across the country. In Indonesia,  carbon-rich peat swamp forests continue to be set on fire when land is cleared to develop plantations crops like oil palm – a practice that sends smoke across the entire region, creating human health hazards and other problems. In 2015, dry weather caused by El Niño exacerbated the problem, leading to high levels of pollution in neighbouring Singapore and Malaysia. The newly created agency will be responsible for coordinating peatland restoration efforts across several ministries until 2020, concentrating on seven provinces in Sumatra, Kalimantan and Papua. Work is expected to focus on improving the hydrology system and controlling the network of canals, so as to minimize the risk of future fires. The agency is also supposed to oversee the use of peatlands and the management of permits and concessions."]
[2016,"February","INDONESIA / MALAYSIA – biodiesel policy:  In 2015, the Governments of Indonesia and Malaysia announced plans to increase their respective biodiesel consumption targets during 2016, with a view to (i) capping outlays on crude oil imports, (ii) reducing greenhouse gas emissions, and (iii) raising domestic palm oil consumption, thereby lending support to prices. Indonesia, where biodiesel sales benefit from government subsidies, planned to raise mandatory blending of palm oil-based biodiesel into transport fuel from 15 to 20 percent. In Malaysia, where biodiesel production receives only limited public financial support, an increase in mandatory blending from 7 to 10 percent was planned. Lately, officials from both countries stated that government plans for 2016 would not be altered, even though the recent collapse in world crude oil prices have made biodiesel about twice as expensive as its fossil fuel alternative. The announcements were met with skepticism by independent observers and industry officials, who pointed out that current biodiesel uptake still had to meet last year’s targets, while production levels remained well below the industry installed capacity. Moreover, concern was expressed that the widening price gap between palm oil and crude oil would propel the amount needed to fund public subsidies:  based on current price levels, public outlays required to achieve the planned targets were roughly estimated at USD 1 trillion for Indonesia and USD 260 million for Malaysia. In Indonesia, government officials reiterated that the required funds would be sourced from the special palm oil export levy introduced last year (see MPPU July & Oct.’15)."]
[2016,"February","MALAYSIA – variable palm oil export tax:  In February 2016, the tax on palm oil exports will remain at zero as the product’s reference price has remained below the MYR 2 250 (USD 542) per tonne threshold that triggers taxation. The export tax has been suspended since May 2015."]
[2016,"February","PAKISTAN – sector development support:  Following past efforts by Pakistan’s Agricultural Research Council to promote olive oil production across the country (see MPPU Nov.’14 & Oct.’15), last month the province of Punjab launched a plan for the development of olive tree cultivation. The province is said to fully meet the required agro-climatic conditions. The provincial plan includes research activities on yield maximization as well as awareness and training programmes on cultivation techniques and on the production of value added products."]
[2016,"February","PHILIPPINES – GMO policy:  In December 2015, the Supreme Court of the Philippines ordered a temporary halt on approving applications for the testing, contained use, importation and commercialization of GM crops and derived products. The ban will remain in place until the government has reformed the current regulatory process for GMOs, ensuring full compliance with existing biosafety and environmental standards and meeting the requirement to hold transparent public consultation processes. The court said it applied the precautionary principle, citing (i) lack of scientific certainty on GMO safety for the environment, and (ii) insufficient attention by local biotech companies to the safety of GM crops and foods. Directly affected by the court’s decision are not only on-going field trials with GM crops, but also part of the country’s maize cultivation as well as the importation of GM crops and derived products, notably soybean meal. Philippine feed millers import 2 million tonnes of soybean meal each year, nearly all of which is genetically modified. The non-renewal of GM soymeal imports permits would oblige buyers to source non-GM product, which is 15–30 percent more expensive. The government has filed a motion for reconsideration of the court’s decision and set up an inter-agency panel to draft new guidelines for GMO use and imports. Last month, the panel began holding public consultations on a draft administrative order. To date, no cases of soymeal shipment disruptions have been reported by the trade."]
[2016,"February","RUSSIAN FEDERATION – import policy:  Russia’s Federal Service for Veterinary and Phytosanitary Surveillance reported pest contamination in a number of soybean shipments received from the United States. The agency is holding consultations with the concerned suppliers and could consider imposing temporary import restrictions. During the last two years, total US soybean shipments to the Russian Federation have climbed to a record 2 million tonnes. "]
[2016,"February","RUSSIAN FEDERATION / CHINA – trade policy:  The two countries signed phytosanitary protocols that will allow the exportation of soybean, rapeseed, wheat, maize and rice grown in selected provinces in Fareast Russia to China."]
[2016,"February","UNITED STATES – biodiesel policy:  The US Congress passed the extension of the USD 1 per gallon (USD 0.26 per liter) tax credit for biodiesel blenders which had expired at the end of 2014. The tax credit applies retroactively to 1 January 2015 and will remain in place until 31 December 2016. A bid to reform the subsidy – narrowing the scope of the credit to domestic production – has been turned down by policy makers. The country’s biodiesel industry had proposed that the tax incentive be provided to producers rather than blenders. Since blenders utilize both domestic and imported product (depending on prices), the modification would have made imported biodiesel ineligible for the credit and thus less competitive. Conversely, the subsidy’s extension in its current form could – given the availability of competitively priced biodiesel on the world market – lead to a further increase in US biodiesel imports in 2016, at the expense of domestically-produced biodiesel."]
[2016,"February","VIETNAM – trade policy:  Vietnam has lifted its temporary ban on groundnut imports from India. The ban was imposed in April 2015 following the detection of quarantine pests in Indian cargoes. Its lifting ensued evidence that India has upgraded its groundnut fumigation facilities, export procedures and certification system."]
[2016,"February","Certified sustainable palm oil – global:  The Roundtable on Sustainable Palm Oil (RSPO), the world’s leading body for sustainable palm oil certification, has published a number of impact indicators for 2015: 1)  last year, certified sustainable oil palm area climbed to 2.77 million hectares, or about 16  percent of the world’s total mature oil palm area, which represents a modest 5 percent expansion from 2014 (when area certified expanded by a much higher rate of 33 percent); 2) production of RSPO-certified palm oil has risen by 1 percent to 12.9 million tonnes, or about 21 percent of global production; while the number of smallholders participating in RSPO certification also increased, they accounted for only 10 percent of total certified production; 3) actual sales of RSPO-certified palm oil, the most critical figure, amounted to 6.2 million tonnes in 2015, about 0.8 million tonnes or 16 percent more than in 2014 – a significant slowdown compared to the last few years;  the amount of actual sales reported by RSPO suggests that 6.7 million tonnes (i.e. more than half of the available certified product) did not find a buyer and probably had to be sold as conventional oil, with no price premium;  furthermore, similar to 2014, about 55 percent of total sales concerned GreenPalm certificates, a ‘book&claim’ mechanism that contributes only indirectly to sustainable production, as it bypasses the physical supply chain, excluding product segregation and traceability."]
[2016,"February","Certified sustainable soybean – global:  The Roundtable on Responsible Soy (RTRS), one of the two leading international bodies specialized in the certification of responsible soybean production, reported a further increase in production and sales of RTRS-certified soy in 2015: 1)compared to 2014, the number of certified hectares and producers increased by approximately 50 and 150 percent respectively; 2)  the volume of certified produce surged by about 60 percent, with certification still heavily concentrated in Brazil and Argentina; 3) global sales of RTRS-certified soybeans climbed to 2.3 million tonnes, increasing by 70 percent year-on-year and exceeding the 50 percent increases observed in both 2014 and 2013;  however, almost 90 percent of the sales were in the form of trade in credits, meaning that the actual physical trade in segregated and fully traceable soybeans continues to play a minor role;  by purchasing credits, buyers only support the adoption of sustainable production practices (see also MPPU June’14 & Feb.’15)."]
[2016,"February","Certified sustainable soybean – United States:  The US soybean industry reported that, in the 2015/16 marketing year, soy exports certified according to the US Soy Sustainability Assurance Protocol (SSAP) increased to a record 2 million tonnes, representing about 4 percent of total US exports. Launched as a strictly national platform in 2013, SSAP assists the sector to document sustainable performance for international customers (see MPPU Sep.’13). The system allows exporters to obtain shipment-specific certificates, using a mass balance approach."]
[2016,"February","Plant diseases –  Xylella control – European Union:  The European Commission has opened an infringement procedure against Italy for not fully respecting the obligations of the EU containment plan designed to block the spread of xylella fastidiosa, a bacterial disease blamed for devastating olive trees in Southern Italy (see MPPU Aug. & Dec.’15). In particular, Italy has been slow in implementing the EU-imposed tree eradication measures. On the same matter, local courts reportedly ordered the suspension of several programmes on the view that too little is understood about the science of the disease to justify certain measures. Especially the plan to create buffer zones by uprooting all susceptible plants in a 100 meter radius of infected olive trees attracted criticism."]
[2016,"February","Plant diseases  – Soybean disease – United States:  US researchers identified a new fungus-based disease affecting soybeans in Mississippi State. Named “soybean taproot decline”, the disease can be spotted during the vegetative stage and has symptoms similar to some other soybean diseases, including the yellowing of leaves while the veins stay green. Research on the organism causing the disease is still on-going, following which work on managing the disease and reducing the associated yield losses will be initiated.     "]
[2016,"February","Biodiesel news – European standards:  Europe’s standardization bodies agreed to release a new voluntary standard for the use of B20/B30 (i.e. diesel blends containing 20 or 30 percent of biodiesel) in company automotive fleets. The current diesel fuel standard only allows up to 7 percent biodiesel content. The new standard is contingent upon the biodiesel portion meeting the European norm for biodiesel EN 14214. The application of the new standard is specifically geared toward fleets in heavy goods vehicle traffic. "]
[2016,"February","Biodiesel news  – Aviation fuel:  Oslo airport in Norway has become the first commercial airport to offer jet biofuel to all airlines through the normal supply mechanism (as opposed to specialized fuel trucks). The biofuel – produced from camelina seed grown in Spain – is blended with conventional jet fuel at a ratio of 48 percent biofuel to 52 percent fossil fuel (for industrial and other uses of camelina in Europe, the United States and Canada see also MPPU Feb./Aug./Dec.’11, Apr./Nov.’13, Feb.’14 & Feb.’15). Reportedly, other airports are also moving towards creating “bioports” using a variety of feedstock, including used cooking oil. In the European Union, a public/private initiative launched in 2011 aims at a 3.5 percent biofuel share in all aviation fuel by 2020 (see MPPU Aug.’11). "]
[2016,"February","Food quality control – Ghana:  After cautioning the public on palm oil adulteration last October (see MPPU Dec.’15), Ghana’s Food and Drugs Authority now declared the oil safe for consumption but advised consumers to only buy palm oil from sellers with accredited badges issued by the Authority. Reportedly, the agency has registered five hundred sellers of palm oil in Greater Accra that comply with its anti-adulteration directives. The registration process, which will be extended to other regions, is expected to facilitate traceability of any adulterated oil found in the market."]
[2016,"February","GMO labelling – United States:  Responding to growing calls for more transparency about ingredients in food products, US-based global food company Campbell Soup Co. announced its withdrawal from all efforts led by industry groups opposing mandatory GMO labeling. The company said it would support the enactment of federal legislation to establish a single mandatory labeling standard for GM-derived foods, including rules for non-GMO claims made on food packaging. Last year, legislators and concerned federal agencies had proposed to regulate GM-labelling nationwide on a voluntary basis (see MPPU Aug. & Dec.’15), while efforts to introduce mandatory labeling continue to be pursued in selected states (see MPPU June’14). Campbell believes that a national standard would better inform consumers and preempt efforts at state level that could be impractical and confusing. The company said that – while it recognizes that GMOs are safe – it is prepared to label all of its US products for the presence of GM-derived ingredients. Reportedly, about three-quarters of the company’s products contain such ingredients (notably GM soybeans, maize, rapeseed and sugar beets). As to the extra costs involved, the company said they would be manageable – provided labelling was regulated at federal level.          "]
[2016,"February","Transportation infrastructure – Brazil:  Independent observers pointed out that the on-going expansion of Brazil’s soybean and maize exports was facilitated by recent improvements in the country’s port infrastructure. Improvements mainly concern the so-called “Arco Norte” (Northern Arc), which comprises river ports on the Amazon and sea ports on the country’s northern Atlantic coast (see also MPPU May’14 & Sep.’15). After major private investments added capacity at several river terminals, barge haul systems and coastal ports, shipments via the northern export corridor are estimated to have expanded by 50 percent in 2015, significantly relieving the burden on highly congested southbound highways and overcrowded ports along Brazil’s southern-eastern and southern coast. Reportedly, shipping grains and oilseeds from Mato Grosso and other Centre-West/Northeast states through the Arco Norte (rather than through the traditional southern routes) cuts transportation costs by 35–45 percent. Market observers reckon that there is room for Arco Norte exports to increase further in 2016, provided the federal government completes a number of critical road and rail links. This concerns in particular highway BR-163 connecting Mato Grosso to two Amazon barge terminals, Miritituba and Santarem, where additional capacity is said to be already available. In this regard, industry representatives expressed concern that, under the country’s current economic crisis, public spending for transport infrastructure could be severely cut, which would slow down the expansion in agricultural exports."]
[2016,"March","ARGENTINA – emergency relief payments:  Following heavy rains caused by El Niño, six of Argentina’s main agricultural provinces have been declared flood emergency areas, making affected grain, fruit and cattle farms eligible to financial assistance in the form of special credit lines and tax breaks. The concerned provinces are Cordoba, Santa Fe, Entre Rios, La Rioja, Chaco and Corrientes."]
[2016,"March","ARGENTINA – variable biodiesel export tax:  In February 2016, the export duty on soyoil-based biodiesel was raised from 1.62 percent – the lowest rate since the introduction of the variable tax regime in 2012 – to 3.89 percent."]
[2016,"March","CHINA – GM soybean importation:  In February, China’s regulators approved the importation of the GM soybean variety ‘RoundupReady2Xtend’ (see also MPPU Sep.’14). The high-yielding variety was developed in the United States to tolerate applications of both Glyphosate and Dicamba herbicides amid growing problems of Glyphosate-resistant weeds in North America. Approval by China – the top destination for US soybean exports – was a key condition for the commercial launching of the new variety in North America. While the new soybean variety is expected to be marketed soon in Canada, where the use of Dicamba is allowed, sales will remain on hold in the United States, pending clearance of the herbicide by the US Environmental Protection Agency (see MPPU Feb.’15)."]
[2016,"March","CHINA / CANADA – rapeseed trade:  In February, Chinese quarantine authorities informed their Canadian counterparts that, as of April 2016, no more than one percent of foreign material would be allowed in Canadian rapeseed shipments (as opposed to the 2.0–2.5 percent range permitted to date). Government experts from both countries worked together since 2009 to address China’s concern that the blackleg fungal disease could spread within its territory via the importation of infected rapeseed from Canada (see MPPU Dec.’09, July’10 & Sep.’14). China’s recent announcement follows scientific disagreement over the risk of transmitting the disease through foreign material in rapeseed cargoes. Canadian industry officials warned that China’s stricter standard would be difficult to meet and make cleaning operations more expensive, possibly discouraging exports. In 2015, China was the top buyer of Canadian rapeseed, importing 4.1 million tonnes.     "]
[2016,"March","EUROPEAN UNION – GMO policy:  The European Parliament issued a non-binding resolution that calls on the European Commission to withdraw its proposed approval of three new GM soybean varieties characterized by tolerance to glyphosate-based herbicides. The resolution points out that the proposal lacks the support of a qualified majority of member states and that an agency of the World Health Organization recently classified glyphosate as ‘probably carcinogenic to humans’ (see MPPU Apr.’15). The EU’s own food safety authority last year ascertained that glyphosate were ‘unlikely to be carcinogenic’ (see MPPU Dec.’15)."]
[2016,"March","EUROPEAN UNION / TUNISIA – olive oil trade:  The European Parliament backed the proposal to raise Tunisia’s duty-free tariff rate quota for olive oil for two years (see MPPU Feb.’15).  However, it added (i) provisions for conducting an assessment of the measure’s impact on the EU olive oil market after one year, and (ii) tracking obligations to ensure that the olive oil imported under the quota is actually produced in and shipped directly from Tunisia. The proposal will now be transmitted to the European Council for its final review."]
[2016,"March","FRANCE – palm oil excise tax:  In January, France’s Senate endorsed a biodiversity bill that includes an increase in the country’s palm oil excise tax from € 103 (USD 115) to € 300 (USD 334) per tonne, citing concerns about the oil’s environmental footprint and alleged health problems associated with the consumption of saturated fatty acids. The € 300 per tonne tax would come into effect in 2017, with planned subsequent rises to € 500 in 2018, € 700 in 2019 and € 900 in 2020. The bill now awaits a vote in France’s National Assembly, which, back in 2013, had rejected a proposal to tax palm oil consumption (see MPPU Dec.’12). With export prices of palm oil currently below USD 700 per tonne, the newly proposed tax levels could make palm oil uncompetitive and foster replacements with cheaper alternatives, say market experts. Indonesia and Malaysia, the world’s key suppliers of palm oil, have filed complaints against the proposed legislation, stating that it would be discriminatory, disproportionate and harmful to their palm oil industries.  "]
[2016,"March","INDONESIA – palm oil support:  In an effort to ease the financial situation of palm oil producers facing low world prices, Indonesia temporarily lowered the export levy on palmkernel shell, a solid by-product of the palm oil extraction process used as feedstock in power generation. Until the end of 2016, a reduced levy of USD 3 per tonne will be collected. However, to encourage investments in biomass-fired power plants, the levy shall be raised again in 2017, initially to USD 5 per tonne and then back to its original level of USD 10 per tonne."]
[2016,"March","INDONESIA – variable palm oil export tax:  With palm oil reference prices remaining below the trigger level of USD 750 per tonne, Indonesia’s export tax for crude palm oil was kept at zero in March 2016. The export tax has been suspended since October 2014."]
[2016,"March","INDONESIA / EUROPEAN UNION – partnership agreement:  According to government officials, Indonesia is committed to speed up negotiations on the Indonesia–European Union Comprehensive Economic Partnership Agreement (CEPA), so as to have an agreement in place within two years. With regard to market access, reductions in the EU’s import tariffs on Indonesian palm oil and cocoa products, which currently range between 8 and 12 percent, are to be pursued by Indonesia. The EU (together with China) is Indonesia’s most prominent market for palm oil after India."]
[2016,"March","INDIA – copra support price:  The 2016 procurement prices for milling and ball copra have been set at, respectively, Rs 59 500 (USD 888) and Rs 62 400 (USD 932) per tonne – up 7 percent compared to last year."]
[2016,"March","MALAYSIA – variable palm oil export tax:  In March 2016, the palm oil export tax was kept at zero, as the product’s calculated reference price remained below the MYR 2 250 (USD 553) per tonne threshold that triggers taxation. The export tax has been suspended since May 2015."]
[2016,"March","MALAYSIA – labour market policies:  In Malaysia, where the plantation sector relies heavily on foreigners as manpower, the government raised the levy applied to foreign workers employed in plantations from RM 590 (USD 145) to RM 1 500 (USD 369), effective February 2016. Usually, the cost of such levy is born by the local plantations companies, which warned that their 2016 earnings could fall by between 3–8 percent because of the increase."]
[2016,"March","PERU – biodiesel anti-dumping duties:  The government imposed anti-dumping tariffs of up to USD 208 per tonne on imports of pure biodiesel from individual Argentine companies. The decision comes 9 months after Peru’s competition regulator began investigating the possible dumping of Argentine biodiesel into the Peruvian market (see MPPU Aug.’15). Argentina is Peru’s principal supplier of the product. Argentine biodiesel producers said they would appeal Peru’s decision."]
[2016,"March","RUSSIAN FEDERATION – import restrictions:  In February, the Russian Veterinary and Phytosanitary Surveillance Service imposed temporary restrictions on imports of soybean and maize originating from the United States, citing violations of phytosanitary requirements. As Russian soybean imports from the United States typically occur from October to February, limited immediate repercussions on trade are expected. Untouched by Russia’s food import embargoes of 2014 (following the Ukrainian crisis), in 2015 soybeans became the number one US agricultural export to Russia. The United States is currently the third most important supplier of the Russian Federation, after Paraguay and Brazil."]
[2016,"March","UNITED STATES – public health policies:  The US Food and Drug Administration (FDA) is considering to start, in fiscal year 2016, routine tests of certain foods sold in the country for residues of glyphosate, a herbicide broadly used in agriculture world-wide, including in soybean cultivation (see also MPPU Apr. & May’15). Last year, glyphosate has been labeled as ‘probably carcinogenic to humans’ by an agency of the World Health Organization, a claim disputed by the European Food Safety Authority (see also above item EUROPEAN UNION – GMO policy). Reportedly, FDA didn’t test food for glyphosate in the past because of cost and labour restrictions and because glyphosate residue levels are deemed to be reduced during food processing. Tolerance levels for pesticide residues in food are set by the Environmental Protection Agency (EPA). The tolerance level for glyphosate on soybeans is 40 ppb.  "]
[2016,"March","Sector development measures  –  India – coconut:  India’s Coconut Development Board will contribute public funds to 58 coconut processing projects in the states of Kerala and Karnataka. The projects relate to coconut oil manufacturing, processing of neera (coconut inflorescence sap), production of flavoured coconut juice, coconut water preservation and packaging, desiccated coconut powder processing, virgin coconut oil production, copra drying and ball-copra making, and production of activated carbon.          "]
[2016,"March","Sector development measures – Canada – rapeseed:  Federal funding will be made available through the Canola Council of Canada to help drive innovation and profitability in the country’s rapeseed industry. Investment projects will be designed to improve yields and to position the country’s export-oriented sector for future growth and sustainability. Research is expected to focus on disease control, plant establishment and fertility management."]
[2016,"March","Transport infrastructure – Brazil:  Brazil’s Tietê-Paraná waterway, a key transport corridor for agricultural products (including soybeans) re-opened after a 20-month closure caused by a prolonged drought (see MPPU Feb.’15). The reopening followed recent rains that raised water levels of rivers situated in southern and central-western states. During the closure, farm products from several key farming states had to be diverted to more expensive road and rail networks."]
[2016,"March","Research & Development –  High-protein low-fiber soymeal:  In the United States, a private joint venture presented a new soy protein concentrate meant to be used as low-cost replacement for fishmeal in the diets of young pigs, young poultry and fish, which require a high-protein/low-fiber diet. Soybeans naturally contain fibers and complex sugars which inhibit nutrient absorption in animals that have a single-chambered stomach. Reportedly, the concerned companies developed a cost-competitive proprietary water and enzymatic treatment to remove the indigestible components. Livestock and aquaculture feeding trials are being conducted to validate product claims."]
[2016,"March","Research & Development – Protein-rich rapeseed:  A biotech firm announced the launch later this year in Canada of a new high-protein rapeseed variety. The meal obtained from the new variety is said to contain 44 percent protein, compared to about 37 percent in conventional rapeseed meal. The high-protein low-fiber meal has been developed (using conventional breeding techniques) to provide pig and poultry farmers with a cost-effective alternative to conventional soybean meal, said the company. In a joint venture with a French seed firm, Canada’s spring-grown variety is to be adapted to be cultivated as a winter crop in France."]
[2016,"March","Research & Development  – Rapeseed vs. soybean meal:  In the United States, a public-private research project evaluated the merits of different protein supplements available in cattle diets. According to the tests conducted, conventional rapeseed meal supplements resulted in more milk and milk protein production per day than soybean meal. Rapeseed meal supplements are a relatively new option that started being used as protein source for cattle when new varieties were developed. Reportedly, per unit of protein, conventional rapeseed meal costs about the same as standard soybean meal."]
[2016,"March","Palm oil sourcing:  One of Indonesia’s leading oil palm businesses, Golden Agri-Resources Ltd, informed that it is able to trace its entire annual supply of over 7 million tonnes of palm oil back to 489 individual mills. The company, which, in addition to producing on in its own right, also buys palm oil from independent mills, claims that tracing all of its product back to source allows it to more effectively engage with independent suppliers to improve their operations in environmental and social terms."]
[2016,"March","Global trade in sustainable palm oil certificates:  GreenPalm, the non-physical certificate trading system of RSPO (Roundtable on Sustainable Palm Oil) that supports sustainable forms of palm oil production, is ready to introduce, in 2016, certificate traceability back to individual originating certified mills. The Book&Claim system, which enables customers to offset palm purchases by buying certificates for an equivalent volume of certified product, is said to be the first non-physical supply chain to implement such traceability system-wide. The new feature means that every buyer of certificates will know which certified palm oil mill he is supporting. Allegedly, the GreenPalm supply chain meets also the needs of smallholders and independent producers, who have limited access to overseas demand for physically segregated supplies of certified palm oil but can be supported for their efforts through certificate trading."]
[2016,"March","Sustainable palm oil standards – RSPO:  The Roundtable on Sustainable Palm Oil launched a new voluntary add-on palm oil standard dubbed RSPO-Next, to address concerns that its basic standard does not adequately attend to all environmental and social issues. Unsatisfied with RSPO’s core sustainability standard, several companies adopted their own stricter corporate standards over the last two years (see, for example, MPPU Dec.’14 & Mar./Oct./Nov.’15). Reportedly, RSPO-Next was developed to meet the needs of these companies. Firms applying for the new certificate need to fulfill a range of more demanding sustainability criteria than the core, mandatory standards. In particular, they need to (i) adhere to a more stringent no-deforestation policy, including the rule that new plantations can only be established on areas with low stocks of carbon, which essentially bans planting on peatland; (ii) monitor and reduce GHG emissions across their entire operation; (iii) commit to promote workers’ rights and to enhance smallholders’ skills; (iv) refrain from using fire to clear land and from spraying the toxic pesticide Paraquat; (v) prove that at least 60 percent of their plantation are already compliant with RSPO’s core standard and commit to rolling out the stricter standard across all of their estates – though no timelines are set on when full compliance has to be achieved; (vi) ensure transparency and due diligence in sourcing from independent suppliers; and (vii) ensure traceability of all certified palm oil back to the plantation where it was produced.  It is important to note that the new standard will not establish a separate physical supply chain:  rather, buyers participate by purchasing RSPO-Next credits from verified growers. Such credits, which are likely to be available from the third quarter of 2016, will only be released to customers that are already buying exclusively certified palm oil through established supply chain systems.  RSPO’s new initiative has also met criticism. According to some observers, the launching of stronger voluntary standards indicates that the current mandatory standards are inadequate, which suggests that they ought to be toughened across the board. Moreover, the fact that companies can set their own  timelines for compliance as well as RSPO’s definition of ‘no-deforestation’ have been criticized. However, others welcomed the new scheme as a sign that the voluntary involvement of more progressive companies could eventually lead to broader change in the sector. Meanwhile, industry representatives reiterated that the price premium for certified sustainable palm oil is not sufficiently attractive and that weak demand for certified produce is a major source of concern."]
[2016,"March","Certification of sustainable palm oil – Indonesia:  A recently released joint study between ISPO, Indonesia’s government-backed certification programme, and the global industry-led RSPO compares the two certification schemes and examines  how they could complement each other (see also MPPU Dec.’13 & May’14). ISPO’s focus is on enforcing compliance of plantations with existing rules and regulations of various ministries, agencies and levels of government, thereby contributing to reduced forest coverage losses and lower GHG emissions from land use change. Reportedly, certification efforts are impaired by several factors, in particular the circumstance that small and medium-sized growers account for 40 percent of Indonesia’s total palm oil output. Main differences identified between ISPO and RSPO relate to the protection of high conservation value forests, plantation land ownership procedures (including the principle of free prior and informed consent), procedures for the development of new plantations, and independent oversight of the audit and certification process. Implementing sustainability certification throughout Indonesia’s expansive palm oil supply chain is said to require increased and effective collaboration between all actors, including between the government and international market participants. Collaboration between ISPO and RSPO could help streamline Indonesia’s palm oil certification process."]
[2016,"April","ARGENTINA – variable biodiesel export tax:  In March 2016, Argentina’s export duty on biodiesel was raised to 6.4 percent. This follows an increase in February to 3.89 percent from a historical low of 1.62 percent in January. The mandatory biodiesel blending rate for transport diesel remains unchanged at 10 percent, the level in place since January 2014. "]
[2016,"April","BANGLADESH – edible oil taxation:  The government decided to extend the value-added tax exemption on domestic edible oil trade – granted in February 2015 and due to expire in June 2016 – by one year, i.e. until 30th June 2017. The measure is aimed at stabilizing domestic retail prices of edible oils. In past years, the government has implemented a variety of measures aimed at securing domestic supplies and preventing consumer prices from rising (see MPPU Feb’16)."]
[2016,"April","BRAZIL – agricultural policy:  The government has expanded the federal programme supporting the collective bargaining of crop insurance packages by soybean farmers. Total government outlays for the programme, which was launched on a trial basis in August 2015, have been raised from BRL 30 million (USD 8.3 million) to 32 million (USD 8.9 million). The maximum subsidy available for individual groups of producers (covering at least 200 farmers or 20 000 hectares) has been raised to BRL 800 000 (USD 221 thousand)."]
[2016,"April","BRAZIL – biodiesel policy:  Legislation lifting the mandated share of biodiesel in diesel transportation fuel from the current 7 percent to 10 percent has been passed in Brazil. The mandatory blend rate will first be raised to 8 percent in April 2017, and subsequently to 9 percent in 2018 and 10 percent in 2019. The new legislation also requires the National Council for Energy Policies to test the feasibility of a 15 percent blend over the coming 36 months. The measures are aimed at boosting domestic biodiesel production, reducing petroleum import dependency and lowering pollutant emissions. Based on Brazil’s fuel consumption, raising mandatory blending by one percentage point lifts annual domestic biodiesel usage by about 0.5 million tonnes. The country’s biodiesel industry should be able to meet the higher blending targets, considering that it currently operates with 45 percent idle capacity. The government’s biodiesel policy also promotes family farming, as Brazil’s ‘Social Fuel Seal’ programme requires a certain amount of raw materials to be sourced from family farms. In Brazil, soybean is expected to remain the main feedstock used for biodiesel production."]
[2016,"April","CHINA / CANADA – rapeseed trade:  China has agreed to delay the implementation of a stringent standard on rapeseed imports from Canada from April to September of this year (see also MPPU Mar.’16). The new standard, which was devised to reduce the risk of blackleg disease spreading to China, limits the allowed content of foreign material in shipments to 1 percent,  which compares to a currently applied limit of 2.5 percent. Canada’s rapeseed industry maintains that the stricter requirement is not scientifically justified and hopes that the 5-month delay for its introduction will allow both sides to come to a long-term agreement."]
[2016,"April","EUROPEAN UNION / ARGENTINA – biodiesel trade:  In March 2016, a panel established by the WTO dispute settlement body (DSB) circulated a report on the anti-dumping measures taken by the European Union against biodiesel imports from Argentina. The Panel, which was set up at the request of Argentina (see MPPU May ’14), ruled in favour of several claims made by the complainant. In particular, the formula used by the European Commission to calculate the costs of biodiesel production in Argentina was found to be inconsistent with existing WTO regulations and the duties applied by the EU considered to be in excess of the margin of dumping that should have been established. The Panel therefore recommended the EU to bring the measures into conformity with its obligations. On the other hand, the Panel rejected some of the claims made by Argentina and also recognized that the EU regulation at the heart of the dispute did not violate WTO rules. Both parties have been given a period of 60 days to appeal the panel’s findings. A separate case filed by Indonesia concerning analogous EU duties on biodiesel imports from Indonesia is still being examined by the DSB (see MPPU Dec.’15). The two main biodiesel feedstock concerned by the disputes are soyoil (Argentina) and palmoil (Indonesia)."]
[2016,"April","FRANCE – palm oil excise tax:  The draft Senate bill proposing the introduction of a surtax on crude palm oil imports into France (see MPPU Mar.’16) has been endorsed by the country’s Lower House. However, the tax has been sharply reduced compared to the initial proposal and now would not apply to palm oil that is produced in a sustainable manner. Under the revised proposal, the tax would be introduced gradually to smooth its impact: it would start at € 30 (USD 34) per tonne in 2017 and augment by € 20 (USD 23) per year until it reaches € 90 (USD 102) in 2020. In addition to crude palm oil, the tax would also apply to palmkernel and copra (coconut) oil used as food. Legislators did not provide a definition for sustainable forms of palm oil production. The draft bill, which attracted strong criticism from palm oil producing countries, is set to go back to the Upper House for further review."]
[2016,"April","INDONESIA – variable palm oil export tax:  With palm oil reference prices below the trigger level of USD 750 per tonne, Indonesia’s export tax for crude palm oil has been kept at zero in April 2016. The export tax has been nil since October 2014."]
[2016,"April","MALAYSIA – variable palm oil export tax:  Malaysia has raised its crude palm oil export tax for April to 5 percent, putting an end to a zero-tax spell that commenced in May 2015. The reintroduction of the tax follows the recent recovery in international palm oil prices. At MYR 2 500 (USD 645) per tonne, the calculated reference price has exceeded the trigger level of MYR 2 250 (USD 580). Under the sliding regime introduced in January 2013, the export tax on crude palm oil starts at 4.5 percent and can increase up to a maximum of 8.5 percent. Although the reintroduction of the tax might dampen Malaysia’s palm oil exports, the resulting rise in domestic availabilities could make local palm oil refining more profitable, eventually boosting exports of refined palm oils (which are not subject to taxation).    ",null,"        "]
[2016,"April","MALAYSIA – labour market policies:  Malaysia decided to temporarily halt the intake of foreign workers pending a review of the manpower needs of the country’s economy, reported a state news agency. Meanwhile, the government also put on hold its plan to raise the levy applied on foreign workers (see MPPU Mar.’16), after businesses affected by the higher charges opposed the measure. Officials from the palm oil industry (which relies heavily on foreign labour force) stated that limited access to foreign labour is posing major challenges to the sector."]
[2016,"April","MALAYSIA – biodiesel policy:  According to official sources, the government is poised to increase the country’s mandatory biodiesel admixture rate from 7 percent to 10 percent nationwide during the course of 2016. Originally, the shift to the higher rate was scheduled to take place in October 2015. Policy makers pledged to raise the production and use of palm oil-based biodiesel despite depressed crude oil prices. The processing and blending facilities required to meet higher blending mandates are said to be available. However, the country’s automotive industry has expressed reservations about the higher blend rates."]
[2016,"April","PHILIPPINES – GMO policy:  In response to a December 2015 court order that banned GM products pending a reform of the country’s regulatory process for GMOs (see MPPU Feb. ’16), the government has issued a set of rules that are meant to replace existing regulations. Reportedly, the new directives, which are expected to take effect in April 2016, give more consideration to socio-economic issues and environmental impacts in risk assessment procedures, while also fostering greater public participation in biosafety decision making. The government’s prompt follow-up is expected to give relief to the Philippines’ soymeal importers and maize farmers, whose activities depend heavily on GM-technology. "]
[2016,"April","TANZANIA – processing industry support:  According to the local press, the Government of Tanzania is considering to offer support to local edible oil manufacturers with a view to adding value to domestic oilseed production, while reducing the volume of imported oils. Reportedly, government efforts would concentrate on local investors interested in setting up facilities for processing crops such as sesame, sunflower seed and oil palm fruit."]
[2016,"April","THAILAND – market regulation:  The government announced that it will buy up to 100 000 tonnes of palm oil, should palm fruit prices drop below a certain level. Recently, record-high palm oil inventories have driven down producer prices, threatening the incomes of growers. Public procurement will be triggered when the producer price of fresh fruit bunches drops below THB 4.20 per kg (USD 120 per tonne). Farm-gate prices are to be supported indirectly through government purchases of crude palm oil from extraction plants, at THB 26.20 per kg (USD 760 per tonne)."]
[2016,"April","UNITED STATES – GMO labelling:  In the United States, the deadlock concerning labelling of GM ingredients in food products at Federal level is continuing (see also MPPU July, Aug. & Dec.’15). In March 2016, the US Senate could not agree on a draft bill that would introduce voluntary GM-labelling nationwide. In the meantime, initiatives to have GM food products mandatorily labelled are being pursued in several states, including Vermont, where a law requiring labels on all foods containing GMOs is poised to take effect in July 2016. Connecticut and Maine have passed analogous laws, but those will enter into force only when other states enact similar measures. Interestingly, in recent weeks, a number of food trading, manufacturing and retailing companies decided not to wait for federal lawmakers to act:  in January 2016, Campbell Soup, formerly an advocate for voluntary labelling, started backing nationwide mandatory labelling (see MPPU Feb.’16); the companies General Mills, ConAgra, Kellogg’s and Mars also announced plans to use labels disclosing the presence of GMOs in food products sold throughout the country. Reportedly, the decision to implement labelling nationwide reflects the impractical nature and high costs associated with addressing state-specific labelling requirements."]
[2016,"April","UNITED STATES – marketing support:  In March 2016, the USDA authorized payments to groundnut producers in four States to help them recover nearly 100 percent of the value of produce they had lost following the bankruptcy of a groundnut processor and licensed warehouse operator. Under the US Warehouse Act, USDA is responsible for protecting all depositors in licensed storage facilities. The 100 years-old Act provides agricultural producers with high-quality storage of farm products so as to allow marketing throughout the year."]
[2016,"April","Research & Development – olive oil extraction:  Under private research undertaken in Spain, a  new oil extraction technology – where extraction is assisted by pulsed electric fields (PEF) – has been developed to increase extraction yields, while raising the concentration of health-related components and consistently maintaining the oil quality. Based on the successful completion of pilot trials, the new technology is said to be ready for commercial scaling-up."]
[2016,"April","Biodiesel certification:  A biofuel producer in Tunisia has earned the Roundtable on Sustainable Biomaterials (RSB) certification for biodiesel production. The concerned company – allegedly the first one in Africa – uses exclusively used cooking oil as feedstock. The finished fuel is sold to the European market. The company is also certified through the International Sustainability and Carbon Certification system (ISCC). "]
[2016,"April","Sustainable palm oil production – Third party pressure:  According to market observers, international banks are playing an increasingly important role in influencing companies to adopt sustainable palm oil production practices. Reportedly, the number of banks that – in an effort to improve their environmental credentials – are requesting producers to apply strict environmental and social standards in exchange for receiving finance is on the rise. Apparently, such requests especially concern smaller companies, as many large producers are already in the process of adopting more sustainable practices. A number of international financial institutions have joined the Roundtable on Sustainable Palm Oil (RSPO), the industry’s leading certification body, asking their clients to do the same and to abide by RSPO’s standards. Also sovereign wealth funds are encouraging firms to improve their environmental record by setting higher standards for investment. Recently, a large Norwegian pension fund reported divestments from palm oil companies that were linked to deforestation and low environmental safeguards."]
[2016,"April","Sustainable palm oil production – Certification:  The Palm Oil Innovation Group (POIG), an international collective of palm oil growers, NGOs and consumer good firms, released a new standard for sustainably produced palm oil (see also MPPU June & Dec.’14). Reportedly, the new norm is stricter than both, RSPO’s standard set of requirements and the recently launched, voluntary ‘RSPO-Next’ criteria (see MPPU Mar.’16). The new POIG standard addresses issues such as the destruction of high carbon stock forests, the development of peatlands, the use of toxic pesticides, the exploitation of local communities, and the violation of human and labour rights. In particular, POIG claims to use a strict methodology to distinguish between forests that have to be left untouched and land that can be cleared. POIG member companies need to undergo a third-party audit and are required to regularly publish sustainability reports."]
[2016,"April","Herbicide & insecticide news – Dicamba and dicamba-tolerant crops:  Originally planned for the forthcoming planting season, the launch, in the United States, of the herbicide dicamba for use on dicamba-tolerant soybean and cotton crops is likely to face delays. The Environmental Protection Agency (EPA) still needs to deregulate a new use of the herbicide, which would expand the current timing to post-emergence applications of the herbicide, thereby enhancing the farmers’ flexibility in weed control (see also MPPU Mar.’16). Considering that EPA has only recently invited public comments on the expanded use of dicamba, a final ruling is only expected in the second half of this year. Furthermore, some US grain elevators and traders warned that they will reject dicamba-tolerant soybean, notably the Roundup-Ready-2-Xtend trait, as that variety has not yet been approved in the European Union (which accounts for an important share of the US soybean export market). "]
[2016,"April","Herbicide & insecticide news – Flubendiamide:  EPA informed that it was moving to halt the sale of insecticides containing the active ingredient flubendiamide. Reportedly, the substance was found to pose risks to the environment. The chemical has been registered in 2008 for use on many crops, including soybeans. "]
[2016,"June","ARGENTINA – seed policy:  All private tests of grain/oilseed shipments carried out to detect the presence of GM seed will require prior government authorization, official sources announced. The new rule would idle efforts by global seed company Monsanto to collect royalties on GM soybeans slated for export (including second-generation soybeans, i.e. crops grown from seed not directly bought from the company). Monsanto relies on private trade companies to inspect all soybean cargoes for the presence of GM material and to collect royalties on its behalf where proof of prior payment is missing – a measure deemed illegal by Argentina’s farmers (see also MPPU July’15). In the wake of the government’s decision, Monsanto said that it would re-evaluate the viability of continuing its GM soy business in the country. The company’s withdrawal would bar Argentina’s farmers from accessing Monsanto’s latest GM soy variety, RoundUp-Ready-2-Xtend, which allows farmers to control weeds resistant to glyphosate-based herbicides. Monsanto had planned to start selling the new variety this year, in time for the country’s 2016/17 crop."]
[2016,"June","BRAZIL – agricultural policy:  The government presented its agricultural support package for the 2016/17 season. Total public outlays for commercial farming will amount to BRL 202 billion (USD 59 billion), 8 percent more than last year, but less than the 2015 inflation rate of 10–11 percent. The bulk of funds (83 percent) will be allocated to loans for production and marketing operations. The amount earmarked for on-farm investment loans will decline by 11 percent, compared with last year’s allocation. About 70 percent of the production/marketing loans will be offered at subsidized interest rates of 9.5–11.25 percent, significantly above last season’s rates. As to investment loans, only 12 percent will be subsidized, with rates ranging 8.5–9.5 percent (again above last season’s level). The remainder of the loans will be provided at market rates – with the benchmark rate currently standing at 14.5 percent. Individual farmer households will benefit from higher borrowing limits – generally 8 to 10 percent above last season’s levels. Government outlays for crop insurance subsidies have been doubled.            "]
[2016,"June","CANADA – transportation policy:  The government decided to extend by one year – until August 2017 – the rules put in place in 2014 to ensure that grains, oilseeds and other crops reach markets in a timely manner (see MPPU Apr.’15). The regulations require minimum shipment volumes by the country’s two main railways. They also entitle traders to receive compensation when a hauler fails to provide adequate services, and give U.S.-based railways greater access to the Canadian freight market. Grain traders welcomed the government’s decision, saying that the provisions had proven to be an effective tool to enhance competition among carriers. By contrast, the country’s railway companies deemed the measures’ extension to be unjustified.       "]
[2016,"June","CHINA – agricultural policy:  China is planning to expand its soybean area over the next five years, mostly at the expense of less lucrative maize cultivation, official sources informed. The statement was preceded by the announcement the country would abandon its state procurement and stockpiling policy for maize, as already done for cotton, soybean and rapeseed. The government set its 2020 target for soybean plantings at 9.33 million hectares, which compares with 6.45 million hectares planted in 2015. The area expansion would be concentrated in regions where soybeans are traditionally grown. Reportedly, the government will roll out plans to encourage farmers to switch from maize to soybean cultivation. Investments in technology to improve yields and specific support for soybean growers are envisaged. Average soybean yields are projected to rise from currently 1.8 tonnes per hectare to over 2 tonnes per hectare, which, combined with the planned area expansion, would boost the country’s output to 19 million tonnes by 2020 – some 60 to 70 percent above the current level. The government intends to promote the cultivation of high-protein non-GM soybean varieties so as to meet rising domestic demand for protein-rich food. Therefore, local production will continue to be devoted to edible purposes (via the transformation of beans into tempeh, tofu, soymilk and similar products), whereas domestic demand for soyoil and soymeal will continue to be satisfied via the crushing of imported beans. Private analysts commented that soybean returns may not be sufficiently attractive to achieve the planned shift in plantings, citing high domestic labour and input costs as well as the dampening effect of cheap soybean imports on domestic prices. Planting decisions are likely to be influenced by various types of subsidies, especially direct payments to farmers, which are expected to replace crop procurement systems. "]
[2016,"June","COLOMBIA – import policy:  Colombia’s import duty on oils/fats and derived products has been suspended until 29 August 2016, to address recent market shortages arising from a slowdown in imports. The slowdown has been linked to the strong depreciation of Colombia’s currency against the US dollar, especially as the US currency has become the legal tender in Ecuador, Colombia’s second largest supplier of edible oil (after the United States). Despite being Latin America’s leading palm oil producer, Colombia is a net importer of oils/fats."]
[2016,"June","INDIA – copra procurement:  In April 2016, the public procurement of copra at the announced minimum support price of INR 5 950 per tonne (USD 89) commenced in Kerala State. Procurement is handled by coconut producer companies designated by the state level procurement agencies, while NAFED (the National Agricultural Cooperative Marketing Federation) is responsible for storage operations."]
[2016,"June","INDONESIA – oil palm replanting:  The Indonesian Oil Palm Estate Fund – the state agency set up in August 2015 to collect the levy of USD 50 for each tonne of crude palm oil exported – released IDR 6.75 billion  (USD 505 000) to support smallholder oil palm replanting (see also MPPU Oct.’15). The funds are part of a multi-year government programme worth IDR 52 billion (USD 3.9 million). The first release will be used to subsidize farmers in Riau province (Sumatra) taking up loans to replace aging palms with new ones. The programme is reserved for farmers with plantations of less than 4 hectares, which, in Indonesia, account for approximately 40 percent of total palm oil output. Reportedly, the government plans to support the replanting of 100 000 hectares per year. Indonesia’s oil palm industry has experienced a virtual stagnation in average yields during the last 10–20 years, due to the aging of palms."]
[2016,"June","NEPAL – market control:  The government launched an investigation into surging retail prices for edible oils and other essential goods, official sources informed. Reportedly, oil manufacturers have been asked to provide details on their costs of production, stocks, and price setting policies.      "]
[2016,"June","UKRAINE – export policy:  Government officials attributed the 10–30 percent rise in internal purchase prices of grains and oilseeds since January 2016 to the re-instatement, at the start of the year, of the 16.7 percent VAT refund for exports of grain/oilseeds. Reportedly, when there was no VAT refund, exporters transferred the financial burden directly to producers by lowering internal purchase prices."]
[2016,"June","Export policy – palm oil –  Indonesia:  In May 2016, Indonesia reinstated its export tax on palm oil, which had been suspended since October 2014. The reintroduction of the tax was triggered by the recent rebound in international palm oil prices, as Indonesia’s escalating tax kicks in when the calculated reference price of palm oil exceeds USD 750 per tonne. With the May 2016 international benchmark price reported at USD 754, an export tax of USD 3 per tonne became due. For June 2016, based on an only slightly higher benchmark of USD 752, the tax will remain unchanged at USD 3 per tonne."]
[2016,"June","Export policy – palm oil – Malaysia:  In the wake of the continued appreciation of international palm oil prices, Malaysia will rise its sliding export tax on crude palm oil to 5.5 percent in June 2016. The tax had been reinstated at 5 percent in May 2016, after a 12-month suspension period."]
[2016,"June","Import policy – palm oil – Vietnam:  The import tax on vegetable oil transactions introduced as a temporary safeguard measure in 2013 (see MPPU Sep.’13) was lowered to 2 percent in May 2016 and is poised to be phased out in May 2017. Although the tax was introduced to protect local producers, the market shares of imported products are reported to have increased further in the last few years, suggesting continued low competitiveness of local production."]
[2016,"June","National food standards – Chile – saturated fat labeling:  Legislation regulating the labeling of the nutritional composition of food products – specifically the content of saturated fat, sodium, sugar and energy – will come into effect in Chile on 26 June 2016. For saturated fats, the threshold triggering obligatory warnings on labels is 4 grams per 100 grams for solid foods, and 3 grams per 100 ml for liquid products. The legislation includes additional marketing restrictions for products that are intended for consumption by children."]
[2016,"June","National food standards – China – food importation:  China’s food standards agency proposed that importers of certain products be required to review relevant documents and conduct on-site inspections of foreign establishments from which they intend to source products. The draft measure is meant to ensure that China-bound foods comply fully with the requirements of national laws and regulations. The list of products for which on-site review of foreign suppliers would be mandatory, includes bulk vegetable oil. "]
[2016,"June","National food standards – Italy – olive oil marketing:  In an effort to comply with EU law, Italy’s lawmakers are considering to abolish a regulation that required a ‘minimum expiry date’ for olive oil of no more than 18 months from the date of bottling. The regulation had been introduced in 2013 because, with age, olive oil begins to gradually lose the organoleptic traits that determine its nutritional and health properties. However, such provision was found to be inconsistent with EU law stating that it is up to food manufacturers to assess the date until which their products retains their specific properties, if properly stored. Italy’s farmers associations warned that the elimination of the labelling requirement would put commercial interests above consumers’ interests. If approved, the measure could also encourage sellers to put old olive oil stocks on the market for sale."]
[2016,"June","National food standards – India – coconut oil marketing:  In line with earlier efforts to curb adulteration of coconut oil, in March 2016, Kerala’s food safety authorities introduced a requirement calling for mandatory registration of new brands within one month of their commercialization, failing which marketing of such oils would be banned (see also MPPU May’15). The measure is meant to prevent previously banned produce from re-entering the market. Reportedly, the new policy has led to orders banning the production and commercialization of 14 brands of coconut oil that were found to be adulterated."]
[2016,"June","National food standards –  Russian Federation – GMO food labeling:  The Russian Federation published draft amendments to its food labeling regulations. The revisions concern new requirements for labeling food products containing GMOs. Under the proposal, labels would need to report GMOs when the presence of a biotech components exceeds 0.9 percent (in terms of product weight). The regulation would apply to the Russian Federation and the other members of the Eurasian Economic Union."]
[2016,"June","National food standards – United States – olive oil imports:  Concerned about reports that describe the prevalence of adulterated and fraudulently labeled olive oil imported into the country, U.S. lawmakers proposed that the country’s Food and Drug Administration (FDA) looks into the creation of a sampling and testing system for imported olive oil. Trading firms commented that testing ought to apply also to domestically produced olive oil. Furthermore, they pointed out that before FDA testing can be effective, specific standards of identity need to be agreed on and implemented nationwide. Apart from federal regulations governing voluntary labeling of olive oil (see MPPU Dec.’10) and from certain definitions used in individual states (see for instance MPPU May/Nov.’14), the United States does not have a set of binding national standards. The existing international standards are said to be of limited value, considering that they remain mostly unenforced (see also MPPU Nov.’13)."]
[2016,"June","Sector development measures – India – palm oil market support:  As part of its efforts to enhance domestic oilcrop production and reduce the country’s dependence on vegetable oil imports, India’s Central Government decided to implement a market intervention system for palm oil. Under the new scheme, fresh oil palm fruit branches will be bought from farmers at INR 7 888 per tonne (USD 118). The move was welcomed by palm oil farmers and processors, who suffered from recent price drops. Previous efforts to stimulate oil palm cultivation failed to produce the hoped-for results. Although the government identified some 2 million hectares of land suitable for oil palm, cultivation has expanded at a slow pace, with current plantings totaling 200 000 hectares nationwide (see also MPPU July/Sep./Dec.’15)."]
[2016,"June","Sector development measures – Indonesia – coconut:  In future, the government will devote more attention and resources to maximizing returns in the country’s coconut industry so as to fully tap the opportunities offered by local and global markets, a government official said. Details on planned measures were not provided. To end the stagnation in domestic production and processing, industry representatives recommended to consider palm rejuvenation programmes to improve productivity levels, as well as a moratorium on raw coconut exports to stimulate local production of value-added products for domestic consumption or export. "]
[2016,"June","Sector development measures – Philippines – public coconut support:  The government allocated PHP 1.29 billion (USD 28 million) to the country’s Coconut Authority to support the implantation of various programmes throughout 2016. Last year, PHP 1.38 billion (USD 30 million) were released. In 2016, the focus of the interventions remains on coconut rehabilitation/replanting, fertilization, intercropping and smallholder oil palm development."]
[2016,"June","Sector development measures – Philippines – private coconut lending:  In 2015, a private bank, formed in 1994 with the specific purpose of channeling credit to coconut farmers, provided loans worth PHP 609.8 million (USD 13.2 million) to some 18 000 small coconut farmers in 66 out of the country’s 68 coconut provinces. The loans financed livelihood activities of small households, including village-based processing of coconut by-products, cash crop cultivation, livestock raising, and marketing projects. To be able to serve remote coconut areas, the bank partnered with farmers/farm workers organizations, NGOs and rural financial institutions. The bank aims at raising its total lending volume to PHP 710 million (USD 15.4 million) in 2016."]
[2016,"June","Sector development measures –  East & Southern Africa – soybean support:  The UK Government launched a ‘Soybean Challenge Fund’ to support the development and improvement of regional soybean value chain systems, including the promotion of regional trade. The Fund backs partnerships that help address market failures in input/service markets, storage, market coordination mechanism and policy regulation. Assistance is targeted at private sector organizations or private sector-led consortia that work together with small scale farmers in the production and marketing of soybeans. "]
[2016,"June","Biodiesel – national policies – Kiribati – coconut oil:  With multilateral financial and technical support, the Kiribati Government is promoting the use of coconut oil in power generation, so as to curb the country’s dependence on fuel imports, while shifting to more environmentally friendly forms of energy production. Under the project, crude coconut oil will be blended with regular diesel fuel at a 9:1 ratio."]
[2016,"June","Biodiesel – national policies – Thailand – B10 use:  In Thailand, where mandatory blending of diesel transportation fuel with 7 percent of palm-oil based biodiesel is in place since 2014, the voluntary nationwide sale of B10 (diesel blends containing 10 percent biodiesel) is planned for 2018. Policymakers are working on industry standards for the higher blends and may introduce tax incentives to make B10 more attractive. B7 will remain commercially available alongside B10. For vehicles run by state agencies and the military, B10 usage will be mandatory."]
[2016,"June","Biodiesel – national policies – United States – federal consumption target:  The U.S. Environmental Protection Agency (EPA) proposed a mandatory volume requirement for biomass-based diesel in 2018 of 2.1 billion gallons – compared with final standards of 1.9 billion gallons and 2.0 billion gallons in 2016 and 2017 respectively. The country’s current production capacity is estimated at 2.1 billion gallons."]
[2016,"June","Biodiesel – national policies – United States – state incentives:  In Iowa, the state with the second largest biodiesel production capacity in the United States, the local government decided to extend its biodiesel production credit – originally set to expire at the end of 2017 – through 2024. The producers credit will remain at 2 US cents per gallon for the first 25 million gallons of production per plant. In addition, the state’s retail tax credit is set to be extended and expanded. While retailers will continue to receive a tax credit of 4.5 US cents per gallon for sales of diesel containing at least 5 percent biodiesel (B5), from 2018 through 2024, the B5 incentive will drop to 3.5 US cents per gallon, but an additional incentive of 5.5 US cents per gallon will take effect for diesel containing at least 11 percent biodiesel."]
[2016,"June","Biodiesel – civil society initiatives – Emission measurement:  A new study presented by an environmental advocacy group suggests that, in the European Union, biodiesel produced from crops grown on agricultural land can lead to similar or higher greenhouse gas emissions that the fossil diesel it replaces – when the impact of indirect land use changes is taken into account. The study analyzed palm, rape and soy-based biodiesel."]
[2016,"June","Biodiesel – industry initiatives – Aviation fuel:  U.S. carrier United Airlines informed that it will use a blend of 30 percent renewable jet fuel – produced from non-edible oils/fats and agricultural wastes – and 70 percent petroleum fuel on selected domestic flights. Purportedly, the initiative is part of the company’s efforts to reduce emissions and support energy diversification. Likewise, the Dutch carrier KLM announced that it will test the efficiency of camelina-based jet fuel on selected commercial flights. Camelina is a non-edible oilseed crop suitable for northern climates, which is said to be suitable for cultivation as a rotation crop in relatively dry areas and on thin soils."]
[2016,"June","Biodiesel – industry initiatives – Coconut waste:  In Thailand, a private joint venture announced the completion of a biomass power plant capable to convert coconut waste into energy. Reportedly, the plant, which uses high-pressure high-temperature technology, is designed for the combustion of all forms of coconut waste – husk, shell, bunches, fronds, leaves and trunk.  "]
[2016,"June","Varietal developments – Groundnut:  Argentina’s Agricultural Technology Institute presented a new early-maturing groundnut variety characterized by high yields and large grain size. The early-maturing trait is said to allow for an early harvest, thus contributing to enhanced efficiency in marketing and crush operations. The new variety, which belongs to the runner low-oleic groundnut group, will be ready for commercialization  in 2017.    "]
[2016,"June","Varietal developments – Safflowerseed:  A group of U.S.-based biotech companies announced successful field trials of safflower plants that produce an edible oil with high levels of arachidonic acid, a fatty acid alleged to provide developmental benefits for infants. The newly developed oil could provide a renewable and sustainable source of this nutritionally relevant fatty acid, the companies said. The seed and its oil are pending regulatory approval before commercialization."]
[2016,"June","Varietal developments – GM soybean:  Private sources reported that leading grain traders in the United States could refrain from buying soybeans produced from Monsanto’s latest GM variety (RoundUp-Ready-2- Xtend), due to concerns that the outstanding regulatory approval in the European Union could disrupt international trade. Earlier this year, Monsanto started selling the new seed in North America, assuming that the EU would grant its approval without delay. The company, which expected farmers in the United States and Canada to plant the new seed on some 1.4 million hectares, has now offered to replace the seeds with varieties that have been cleared by the key import authorities. The event shows that traders are increasingly reluctant to buy GM products that haven’t been granted regulatory approval in the major export markets. Reportedly, to address the trade’s concerns, some seed companies have started selling their GM varieties under contracts that detail specific locations where growers can deliver their crops.                        "]
[2016,"June","Responsibly sourced soybean – Brazil – soy moratorium:  Initially launched in 2006 for two years and renewed annually since 2008, the voluntary moratorium on trading and financing of soybeans grown on illegally cleared land in the Amazon region has been renewed indefinitely. The decision was taken by a multi-stakeholder coalition that brings together the private sector, civil society groups and the Brazilian government. Reportedly, the moratorium has proven effective in reducing deforestation and enabling responsible soy production, while ensuring full compliance with national regulations, notably the Brazilian Forest Code and the federal monitoring of farms under a rural environmental registration system.  "]
[2016,"June","Responsibly sourced soybean – Company news:  Following other firms based in Nordic countries, a large Scandinavian meat processor pledged to use – by the end of 2018 – only responsibly sourced soybeans, a key ingredient in animal feed. The company’s commitment is said to reflect concerns over deforestation, rising greenhouse gas emissions, depletion of biodiversity and soil erosion in conventional soybean production. To achieve 100% responsible sourcing, the company will rely on independent bodies that certify responsible soy production, notably the Round Table on Responsible Soy (RTRS) and ProTerra (see also MPPU Feb.’15)."]
[2016,"June","Responsibly sourced soybean – WWF:  The World Wildlife Fund called on companies in the soy supply chain to be transparent about their use of soy and to consider sourcing soy from RTRS and ProTerra certified producers. After reviewing the sourcing policies of selected European companies that buy and use soy as animal feed in meat and dairy production, WWF stated that many of them have limited knowledge about the origin of their supplies and are not aware of the importance of protecting vulnerable natural habitats such as the Amazon, Cerrado and Chaco regions in South America. The advocacy group also pointed out that, although some soybean producers and companies were investing heavily in responsible production and certification, the market was not sufficiently recognizing and rewarding these efforts (see also MPPU Feb.’16)."]
[2016,"June","Palm oil – national environmental policies – Malaysia – pollution control:  In a bid to control the growing annual haze pollution problems affecting large swathes of Southeast Asia, the Government of Malaysia proposed to amend the country’s Environmental Protection Act so as to allow the confiscation of land where big fires are discovered. The annual outbreak of fires in Malaysia (and Indonesia) has been directly associated with slash-and-burn forest/peatland-clearing practices employed when new oil palm plantations are developed. Used as an easy and cost-effective way to clear land, such illegal practices release large amounts of greenhouse gases and produces a dense toxic smog that threatens human health, compromises crop yields and affects air traffic. Officials said that, under the proposed amendment, the government would seize control of land irrespective of plantation size."]
[2016,"June","Palm oil – national environmental policies – Indonesia – peatland protection:  Indonesian government officials informed that a peatland management method developed in Malaysia, called compaction, would be tested in the country in a bid to curb annual fires in peatland areas. Malaysian experts said the method could suit Indonesia’s highly porous peatlands because it made the soil more solid, preventing it from losing water quickly, hence making it more resistant to fire during the dry season."]
[2016,"June","Palm oil – national environmental policies – Indonesia – oil palm moratorium:  The President of Indonesia announced a new moratorium on oil palm concessions as part of the country’s efforts to reduce the sector’s impact on the environment. He added that he expects the sector’s further growth to originate primarily from productivity improvements – relying on both the introduction of higher-yielding planting material and the development of uncultivated land under existing concession. No timeline and implementation details were provided, but a presidential regulation is under preparation to form the legal basis for the moratorium. The new measure would complement a 5-year old moratorium on primary forests clearing and peatland conversion (see MPPU May’15). In preparation of the new moratorium, relevant ministries and local governments have been instructed to review all existing plantation permits, so as to ensure that they are based on legal and valid land acquisition processes. According to government officials, since the moratorium’s announcement, numerous applications for land conversion permits have been rejected. Some industry experts warned that the new ban could slow down the country’s economic growth and lead to critical palm oil supply shortages and prices increases at both national and global level. Others welcomed the government’s effort to focus on intensification rather than on land expansion. Civil society groups expressed doubts about the new presidential plan, pointing to critical enforcement problems faced under the existing moratorium (allegedly resulting from decentralized decision making) and to obstacles faced in raising yields, especially at smallholder level."]
[2016,"June","Palm oil – company initiatives:  After committing to delinking palm oil production from deforestation and to mapping its supply chain to the mill level, Golden Agri-Resources – one of Indonesia’s leading palm oil producers – pledged to achieve 100% supply traceability up to the plantation level. For the mills owned directly by the company, traceability to plantations would be achieved by 2017, while traceability for independent third-party mills that supply the company is to be achieved by 2020. The latter target is said to require engagement with hundreds of individual plantation managers, intermediaries and smallholder farmers. On the same topic, Wilmar, the world’s largest palm oil processor and trader, recently reported significant progress in mapping its supply chain, including its third-party suppliers. However, the company acknowledged that achieving 100% traceability required more time than originally planned due to the complexities of its supply network. The company also recognized that the development of clear means to measure progress in reducing actual deforestation posed multiple challenges."]
[2016,"June","Palm oil – civil society groups: Greenpeace International informed that according to its latest review of global consumer good firms that pledged to set up deforestation-free palm oil supply chains, none of the companies surveyed was able to confirm that its supply chain was free of deforestation, nor could the companies determine how much of their palm oil originated from suppliers that comply with their own sourcing standards. Also, most companies had yet to obtain independent third-party verification to demonstrate that their palm oil is produced in compliance with their policies."]
[2016,"June","Palm oil – civil society groups: In March 2016, Greenpeace Indonesia launched a mapping tool (using technology developed by Global Forest Watch) that allows the public to monitor deforestation and fires in near-real time, as well as to see who controls the land where the fires are lighted.      "]
[2016,"June","Palm oil – sustainability certification:  In April 2016, the Roundtable on Sustainable Palm Oil (RSPO) – the world’s leading, industry-backed standard setting body for palm oil – informed that it had suspended one of its members from certification following non-compliance with standards meant to prevent rainforests destruction, peatland conversion and social conflicts. The suspension prevents the concerned member – which is one of seven companies that dominate global trade in palm oil – from selling palm oil (produced since the suspension) as certified sustainable. In the wake of the suspension, several customers of the suspended company, including Unilever, Kellogg, Mars and Nestlé, informed that they were disengaging from trading with the suspended firm so as to comply with their own corporate policies and commitments. The buyers’ reaction shows how commercially sensitive palm oil procurement and traceability have become. The suspended company assured that it was committed to address the issues raised. It submitted an action plan for RSPO re-entry, detailing corrective actions taken to review and enhance the company’s sustainability practices. In another instance, in May 2016, a large palm oil grower voluntarily requested the withdrawal of sustainability certificates granted by RSPO from 58 of its palm oil processing mills. The company said it foresaw sustainability issues in its supply chain and therefore wished to review certain policies and make some structural changes in its certification approach. The company submitted a time-bound action plan on how to achieve full compliance with RSPO standards at all its plantations and mills.           "]
[2016,"June","Plant disease control – olive tree:  A new study released by the European Food Safety Authority (EFSA) confirms that xylella fastidiosa is responsible for the quick wilting and dieback syndrome that is destroying olive trees in southern Italy. The finding is said to mark an important step forward because, in order to accurately assess the risk of an epidemic spreading, the epidemiology and host range of the disease need to be ascertained. The study considers the stringent removal of host plants, irrespective of their health status, in new outbreak areas, as the only option effective in reducing pathogen spread. In addition, the reduction of certain vector populations, by application of chemicals or any sustainable method, may slow down the pathogen spread."]
[2016,"June","Herbicide regulations – glyphosate:  In April 2016, the European Parliament invited the European Commission to extend the market approval for glyphosate by no more than 7 years. Originally, the permit – which runs out in June 2016 – had been proposed for a 15-year renewal. Lawmakers also recommended to restrict the type of uses for which the herbicide was cleared, until its classification for safe and sustainable use and its toxicity levels were re-assessed. They also requested that the scientific evidence behind a recent assessment of the herbicide by the European Food Safety Authority be disclosed (see also MPPU Dec.’15 & Mar.’16). Glyphosate is extensively used in agriculture and is employed worldwide in soybean cultivation. Lately, questions about the herbicide’s effectiveness and about potential environmental/health hazards associated with its use have been raised by researchers and regulatory agencies in several countries."]
[2016,"June","Futures markets – China:  The Zhengzhou Commodity Exchange raised its transaction fees for some institutional investors for rapeseed meal futures contracts, effective 13 May 2016."]
[2016,"June","e-trading – India:  In April 2016, the government launched an e-trading platform covering 25 agricultural commodities, including major oilseeds, in a bid to improve transparency in wholesale markets and help farmers obtain better prices for their products. The platform allows farmers to sell their products online in any of the registered markets. Out of India’s 29 states, 21 are participating in the project, which initially covers 365 wholesale markets."]
[2016,"June","Futures markets – United States:  The CME Group raised the maximum daily price change permitted on soybean contracts by 5 US cents to 65 US cents per bushel. The new price limit has come into effect on 20 April 2016."]
[2016,"July","ARGENTINA – seed policy:  The Government of Argentina committed to strengthen its control over national seed markets in a bid to ensure that private seed companies are able to consistently collect royalty payments. Addressing calls by global seed company Monsanto that the GM technology contained in a newly developed soybean variety be protected (see MPPU June’16), the country’s state-owned National Seed Institute, INASE, has been tasked to oversee the testing of soybean for the presence of relevant GM traits. INASE will be allowed to delegate the laboratory tests to private entities such as regional grain exchanges. Cargoes that test positive will be traced back to producers, to assess whether royalties have been duly paid. The past practice, whereby Monsanto would sign deals directly with private grain companies to police royalty collection, had been contested by Argentina’s farmers."]
[2016,"July","BRAZIL – agricultural policy:  According to unofficial sources, the Government of Brazil pledged to make available BR 21 billion (USD 6.4 billion) in additional credit for on-farm investment during the 2016/17 agricultural campaign. The measure aims at increasing the flow of funding toward the purchase of farm equipment and other investments in a year characterized by tight credit supplies and rising borrowing costs (see also MPPU June’16).      "]
[2016,"July","CANADA – trans fat control:  As part of commitments to eliminate industrially produced trans fats in processed foods, the Government of Canada asked industry stakeholders to provide data on the amount of partially hydrogenated oils (the primary source of industrially generated trans fats) present in domestic or imported foods, as well as on the reasons for their use and their concentrations. Despite long-standing efforts to reduce the presence of trans fats in the domestic food chain (see MPPU Sep.’11), studies revealed that trans fat concentrations remained above set targets in a number of foods, putting at risk certain groups of consumers – given strong evidence linking trans fat intake to coronary heart diseases. Last year, in the United States, food manufacturers have been ordered to remove trans fats from their products within three years (see MPPU July’15).       "]
[2016,"July","CHINA – rapeseed oil state auction:  Sales of rapeseed oil from state reserves continued in China (see also MPPU Feb.’16). Reportedly, public auctions held during the month of June 2016 in 11 provinces concerned rapeseed oil batches held in store since, respectively, 2011 and 2012. In Hubei, the province recording the highest sales, an average price of CNY 5 385 per tonne (USD 803) was obtained."]
[2016,"July","EUROPEAN UNION – olive tree disease control:  The European Court of Justice has backed a decision requiring EU member states to immediately remove plants capable of hosting the xylella bacterium, regardless of their health status, within a radius of 100 meters around infected plants (see MPPU May&July’15). The European Commission’s decision had been challenged by a regional court in Italy, which suspended the EU order and referred questions to the bloc’s Court of Justice (see MPPU Feb.’16). In June 2016, the European court determined that the measure was in line with EU law, in particular with the obligation to apply appropriate phytosanitary treatments. The EU Court ruled that the precautionary principle and the principle of proportionality can justify the adoption of protective measures such as the removal of plants, even where there is scientific uncertainty on the subject. "]
[2016,"July","EUROPEAN UNION – herbicide approval: The EU Commission decided to extend the license approval for glyphosate (a chemical found in herbicides used on oilcrops and grains worldwide) by a period of 18 months, starting on 1st July 2016. Originally, the Commission had proposed a 15-year renewal, while the EU Parliament recommended limiting the authorization to 7 years (see also MPPU June’16). As the EU member governments failed to reach an agreement, the Commission eventually opted for a limited, 18-month renewal geared towards obtaining additional scientific evidence on the herbicide’s safety. Accordingly, the European Chemicals Agency (ECHA) has been requested to conduct a harmonized classification and labelling process for glyphosate. As the scope of the additional review includes all toxicological effects, routes of exposure and environmental protection aspects, it will look beyond the immediate toxicity of active ingredients. ECHA’s is expected to publish and forward its opinion to the EU Commission within the next 18 months. Back in December 2015, the European Food Safety Authority (EFSA) had assessed that glyphosate was unlikely to pose a carcinogenic hazard to humans (see MPPU Dec.’16).       "]
[2016,"July","EUROPEAN UNION / ARGENTINA – biodiesel trade:  The EU and Argentina both appealed the findings of a WTO dispute panel regarding the anti-dumping measures taken by the European Union against biodiesel imports from Argentina (see MPPU Apr.’16). With both countries taking issues with specific aspects of the recent ruling, the case will now be reviewed by the WTO’s Appellate Body, which has 3 months to issues its report. In general, the Body reviews legal interpretation matters, rather than the dispute panel’s factual findings.  "]
[2016,"July","FRANCE – palm oil excise tax:  France’s law makers eventually dropped plans to introduce a surtax on crude palm oil imports destined for use in food products (see also MPPU Apr.’16). According to press reports, legal uncertainty around the proposed tax – which concerned only one type of vegetable oil and allowed for exemptions based on vague sustainability criteria – led to the Parliament’s decision to withdraw the bill.    "]
[2016,"July","INDIA – production support – Kharif crops:  The government raised the minimum support prices (MSP) for all 2016/17 Kharif season crops, effective 1st October 2016. Pulses and oilseed crops will enjoy a special bonus reserved for crops characterized by widening domestic supply deficits. For unshelled groundnuts, the new MSP (including the bonus) amounts to INR 42 200 (USD 628) per tonne – up 5 percent from last season. The corresponding values for yellow and black soybean, sunflowerseed, nigerseed and sesamum are, respectively:  INR 27 750 (USD 413), up 7 percent; IND 39 500 (USD 588), up 4 percent; INR 38 250 (USD 569), up 5 percent; and INR 50 000 (USD 744), up 6 percent. For comparison, the support prices for pulses, paddy, maize and cotton have been raised by, respectively, 8 percent, 4 percent, 3 percent, and 1 percent.\n"]
[2016,"July","INDIA – production support – Copra:  With market prices for copra dropping below INR 50 000 (USD 744) per tonne, on 15th June 2016, the Tamil Nadu state government commenced procuring copra from farmers. The nation-wide support price of INR 59 500 (USD 886) and INR 62 400 (USD 929) per tonne will be applied for, respectively, milling grade and edible quality copra. Procurement operations will last for six months and will be handled by coconut producer cooperatives designated by the state level procurement agencies."]
[2016,"July","Variable export taxes – palm oil:  Indonesia and Malaysia decided to set their tax for crude palm oil exports at, respectively, zero USD per tonne and 6 percent per tonne during July 2016. In the preceding month, the corresponding rates were USD 3 per tonne in Indonesia and 5.5 percent per tonne in Malaysia. Interestingly, while Indonesian officials expected the benchmark price for palm oil to fall in July (thus triggering the suspension of the country’s export tax), Malaysian authorities anticipated reference prices to rise (prompting an upward adjustment in the tax).   "]
[2016,"July","GMO policies – GM soybean varieties – European Union:  Three new GMO soybean varieties, cultivation\nof which commenced in the United States and Canada, are yet to be approved in the European Union, a regular buyer of soybeans from North America (see also MPPU June’16). The European Commission, the body in charge of granting the approvals, explained that it was following the customary precautionary, science-based approach in assessing the new biotech crops. Meanwhile, EU trade groups warned that, in the absence of a final decision, importers could decide to restrict purchases from North America to avoid the risk of cargoes containing traces of unauthorized GM material being rejected at the borders (see also MPPU June’16). The trade advised that timely approval – i.e. before concerned crops are harvested and enter trade – will be essential to ensure the viability of food imports and livestock operations in the EU. Reportedly, in the United States, the companies that launched the new varieties are working on measures to prevent GM traits from entering shipments destined to the European market.\n"]
[2016,"July","GMO policies – GMO labelling – United States:  In the state of Vermont, as of 1st July 2016, all GMO presence in food products must be clearly displayed on labels. Similar legislation has been considered in other states but failed to pass. In the meantime, efforts\nby federal lawmakers to agree on nation-wide labeling rules go on amid concerns that different regulations across state lines could hamper domestic food trade and inflate costs for labelling and distribution (see also MPPU Apr.’16). In June 2016, the US Senate reviewed a draft bill that would give food manufacturers the option to either provide on-package labeling of GM ingredients or furnish QR (Quick Response) codes, phone numbers or website addresses where consumers can obtain additional information about GMO ingredients. The draft bill still has to be reviewed by the Lower House. If passed by both chambers of Congress, the national bill could nullify Vermont’s law. The country’s farm community and food industry criticized past mandatory labelling proposals, arguing that there are no measurable health concerns from GM foods. With up to 80 percent of supermarket foods reported to contain GM ingredients (notably GM soy, maize, rapeseed and sugar beet), mandatory labeling schemes would affect much of the country’s food industry. Recently, some food manufacturers committed to voluntarily label their GM products nationwide (see MPPU Apr.’16).\n"]
[2016,"July","Biodiesel policies – Australia:  The Government of Queensland State committed AUD 20 million (USD 15.2 mill) in funding to promote the production and use of biofuels. The measure complements the state’s 10-year biofuels roadmap, which comprises mandatory transport fuel blending rates of 3 percent and 0.5 percent for, respectively, ethanol and biodiesel starting 1st January 2017.\n"]
[2016,"July","Biodiesel policies – Malaysia:  From July 2016, the rates for mandatory blending of conventional diesel with palm oil-based biodiesel will be raised to 10 percent and 7 percent for, respectively, transportation fuel and industrial uses (see also MPPU Apr.’16).\nThe government expects nationwide implementation of the new standards to be completed by August 2016. Reportedly, facilities currently available in the country are adequate to handle the new B10 and B7 fuels. Besides promoting the use of renewable, ‘green’ sources of energy, the measure is aimed at stabilizing – via the stimulation of local demand – local crude palm oil prices. The government expects palm oil uptake by biodiesel producers to grow (underpinned by the new, higher blending mandates) from currently 500 thousand tonnes to 709 thousand tonnes per year. Palm oil industry representatives questioned whether the envisaged increase in domestic demand will be sufficient to drain the country’s surplus output of crude palm oil. They also warned that the current low mineral oil prices could make biodiesel production uncompetitive.\n"]
[2016,"July","Biodiesel policies – Nepal:  The Government of Nepal formed a committee to examine the possibility of producing biodiesel from jatropha seed. In the country, over 500 thousand hectares of unused land are deemed suitable for jatropha cultivation, and preliminary studies claim that several regions have a high potential for commercial jatropha farming. The government is pursuing biodiesel initiatives with a view to reduce the country’s dependence on imported fossil fuels, while reducing carbon emissions. Reportedly, the country still bas to put in place the necessary infrastructure for biodiesel production and marketing.\n"]
[2016,"July","Biodiesel policies – Philippines:  In May 2016, the country’s Department of Energy issued new specifications for coconut methyl ester (coconut oil-based biodiesel). Allegedly, the revised national standard (which features higher iodine and oxidation stability values, a lower maximum sulfur content, and a cold soak filterability test) raises the bar for quality beyond the globally accepted ASTM biodiesel standard. Compliance with the new standard has become mandatory for all biodiesel produced and sold in the country."]
[2016,"July","Biodiesel policies – Thailand:  In Thailand, where mandatory blending of diesel transportation fuel with 7 percent of palm oil-based biodiesel is in place since 2014, the government has signed MoUs with private energy and logistics companies to use B20 biodiesel (20 percent blends) for their heavy vehicles. THB 115 million (USD 3.3 million) from the country’s Energy Conservation Promotion Fund will be made available to subsidize purchases of the alternative fuel by the signatory companies. Moreover, a feasibility study is underway to evaluate the use of B10 biodiesel in military and government transports. Once the necessary assurances will be obtained from car manufacturers, B10 and B20 blends will also become available commercially (see also MPPU June 2016). \n"]
[2016,"July","Sector development measures – Angola – oil palm development: The Government of Angola earmarked five of the country’s provinces for the promotion of oil palm cultivation, informing that a number of detailed investment proposals are already under consideration. Once an important producer and exporter of palm oil, the country still can avail of specialized palm research stations, government officials said. Furthermore, Angola is cooperating with research institutions in the Philippines, Malaysia and Indonesia, and there are plans to swap genetic material with these countries to improve Angola’s palm stock.\n"]
[2016,"July","Sector development measures – India – coconut:  The Coconut Development Board of India informed that it will extend financial assistance to farmers in Tamil Nadu state. The measure is aimed at replacing senile, disease infected and unproductive palms, and rejuvenating existing trees through integrated management practices. Subsidies will amount to INR 1 000 (USD 15) for the cutting/removal of unproductive palms and INR 17 500 (USD 261) per hectare for rejuvenation measures. In addition, 50 percent of seedling costs will be covered.\n"]
[2016,"July","Sector development measures –  Philippines – typhoon rehabilitation: The Philippine Coconut Authority expects to complete by 2017 its coconut palm replanting programme in Eastern Visayas, the region most affected by typhoon Haiyan/Yolanda in 2013. To pave the way for the recovery of the local coconut industry, the programme envisaged the replanting of 10 million palms.\n"]
[2016,"July","Sector development measures – Philippines – coconut development: According to local press, the incoming government vowed to release the funds that were collected from coconut producers via a levy during the 1970s (see also MPPU Jan.’15). The agencies tasked to manage the funds will have to design a mechanism for redistributing the monies to farmers. Related to this, the government announced plans to implement a large-scale coconut planting programme. Reportedly, the country’s Coconut Authority is ready to launch a six-year planting scheme covering 600 000 hectares of new coconut areas across the nation. Under the programme, farmers would enjoy access to coconut seedlings, fertilizers and irrigation equipment through soft loans. In parallel, the introduction of secondary/cash crops would be promoted.  \n"]
[2016,"July","Certified sustainable palm oil – Supply chain traceability:  RSPO, the industry-led standard setting body for palm oil, has launched a new traceability system (eTrace) that allows traders, manufacturers and retailers to trace back to mills all palm oil procured through physical trade systems – i.e. RSPO’s segregated and mass balance supply chains. Traceability will, however, not apply to palm oil traded via RSPO’s ‘book&claim’ mechanism, which by-passes the physical supply chain and, in 2015,  accounted for about half of total sales of RSPO-certified palm oil (see MPPU Feb.’16)."]
[2016,"July","Certified sustainable palm oil – International trade:  During recent weeks, a number of global trade firms committed to join consumer good companies that decided to cease trading with a palm oil supplier whose sustainability certificates had been suspended by RSPO in March 2016 (see MPPU June’16)."]
[2016,"July","Food standards and quality issues – Food standards – India:  The Food Safety and Standards Authority of India (FSSAI) issues new manuals on testing methodologies and analyses for various food products, including oils and fats. The revised standards must be applied by all food safety laboratories from June 2016 onward."]
[2016,"July","Food standards and quality issues –  Adulteration – India:  In India, new cases of vegetable oil adulteration have been reported in June 2016 (see also MPPU May’15). A private consumer organization tested samples of loose edible oil collected randomly in open markets in 15 states across the country. Reportedly, adulteration with potentially health threatening substances was found in almost half of the over 1 000 samples. The highest rate of adulteration was found in coconut oil, followed by cottonseed, sesame, mustard, groundnut, palmolein, soy and sunflower oil. Reportedly, the tests followed both quality and safety parameters as prescribed by FSSAI and were carried out by accredited laboratories.\n"]
[2016,"July","Food standards and quality issues – Toxic substances – EU:  The European Food Safety Authority issued a warning concerning three toxic substances in vegetable oil derivatives. The glycerol-based contaminants form during food processing, in particular, when vegetable oils are refined at high temperatures. The discovery raises potential health concerns for average consumers (of vegetable oils, margarines and processed foods such as pastries and cakes) in all young age groups, and for high consumers in all age groups, informed the agency. EU food safety regulators have been invited to use EFSA’s scientific advice to consider how to manage the potential risks for consumers from exposure to these substances in food. \n"]
[2016,"July","Futures markets:  Chicago-based commodity exchange CME formed a partnership with Bursa Malaysia Derivatives and Thomson Reuters to extend its agricultural products by adding four new palm oil contracts – Malaysian crude palm oil and palm olein calendar futures, Malaysian crude palm oil average price options, and Bursa Malaysia crude palm oil-gasoil spread futures. The move is meant to offer customers increased flexibility and efficiency in managing exposure to price volatility in palm oil markets."]
[2016,"August","CHINA – sales from state reserves – Soybeans:  In July 2016, the Government of China resumed soybean sales from state reserves via weekly auctions (which last took place during the 2014/15 campaign), in a bid to help ease tight domestic supplies. Based on official sources, during the first three auctions, which included soybeans from the country’s 2010, 2012 and 2013 harvests, a total of 716 000 tonnes have been sold. Reportedly, discounted prices – ranging around CNY 3 300 per tonne (USD 497) – attracted buyers from both the food and animal feed sectors. Market observers expect the government to put on sale its entire soybean reserves, which private sources estimate between 4–6 million tonnes. Provided auction prices remain attractive, demand by the industry could remain strong as the country’s food sector is said to face a shortage of non-GM soybeans, while lower quality beans could be absorbed by crushers producing soymeal for animal feed."]
[2016,"August","CHINA – sales from state reserves –  Rapeseed oil:  According to private sector estimates, since the resumption of sales from state reserves in December 2015, 1.8 million tonnes of rapeseed oil have been sold through public auctions (see also MPPU July’16). Additional sales are expected to take place in the coming months.    "]
[2016,"August","EUROPEAN UNION – GMO policy:  On 22 July 2016, the EU Commission authorized three new GM-soybean varieties, whose approval was keenly awaited by the international trade (see MPPU July’16). The varieties have been authorized for import and processing for food and feed use, but not for cultivation. The varieties concerned are Monsanto’s 89788x87708 (known as Roundup-Ready-2-Xtend) and 89788x87705 (Vistive Gold), and Bayer’s FG72 (Balance GT). The authorizations are valid for 10 years. Any products produced from these GMOs will be subject to the EU’s labelling and traceability rules. The EU’s approval clears the way for the varieties’ worldwide cultivation and will allow grain traders and processors in North America to lift recently introduced marketing restrictions for the varieties in question (see MPPU June’16)."]
[2016,"August","EUROPEAN UNION – biofuel policy and climate action – European Commission:  In a paper outlining measures to accelerate the EU’s transition to a low-carbon economy, the Commission proposed to gradually phase out – from 2020 – conventional food-based biofuels, while providing incentives for the development of more advanced (‘second-generation’) biofuels, including fuels produced from agricultural residues. According to the document, conventional biofuels play a limited role in decarbonizing the transport sector and should not receive public support after 2020. The Commission also proposed – for the first time – a set of ambitious, binding GHG emission reduction targets for the transport, buildings, agriculture, waste, land-use and forestry sectors – i.e. the sectors that are not included in the bloc’s Emissions Trading System. The proposed targets are country-specific and refer to the period 2021–2030, using 2005 emission levels as a baseline. A special treatment is proposed for land use, land use change and the forestry sector (or LULUCF), which, while presenting only limited scope for emission reductions are capable to remove CO2 from the atmosphere. "]
[2016,"August","EUROPEAN UNION – biofuel policy and climate action – European Court of Auditors:  Weaknesses in the system certifying sustainable biofuels could undermine the basis of the EU’s 2020 targets for renewable energy in transport, according to a recent report by the European Court of Auditors (ECA). Under EU rules, member states can only use biofuels certified as sustainable to reach their targets (see MPPU Aug.’11). While most biofuels are certified through voluntary schemes recognized by the European Commission, the auditors expressed the opinion that, because of weaknesses in the Commission’s recognition procedure and in the supervision of the schemes, the EU’s biofuel certification is not fully reliable. They also pointed out that member country statistics might overestimate the use of sustainable biofuels by including fuels whose sustainability was not fully verified. ECA called on the Commission to ensure that all certification schemes (i) assess whether biofuel production entails significant socio-economic risks and indirect land-use change; (ii) verify that feedstock producers comply with environmental requirements for agriculture; and (iii) provide sufficient evidence of the origin of waste and residues used for biofuels."]
[2016,"August","INDIA – market policies – Kerala:  In Kerala state, the government proposed the introduction of several taxes – including a 5 percent levy on coconut oil sales and a 14.5 percent ‘fat tax’ on selected food products sold through branded outlets. Allegedly, the fat tax is aimed at promoting healthy eating habits, while the revenues from the proposed coconut oil levy would be earmarked for procurement of copra from coconut growers."]
[2016,"August","INDIA – market policies – Centre:  Concerned over rising inflation, the Central Government has asked the states to remove all local taxes that are levied on essential food items (including edible oils), local newspapers reported. Apparently, the move is aimed at ensuring nationwide adequate supplies of essential food items at prices affordable to consumers. State governments should also reduce the number of intermediaries in the supply chain and allow farmers to sell their produce at any place of their choice. Moreover, to enhance the availability of essential foods and check price rises, local governments have been invited to introduce pricing policies, implement market intervention schemes, and set up market information systems."]
[2016,"August","INDONESIA – environmental policies:  Indonesia is expected to soon release a presidential regulation that would serve as a basis for the recently announced 5-year moratorium on new oil palm plantations in the country (see MPPU June’16). According to press reports, the decree could comprise a ban on approvals of planting expansions into forested areas within existing concessions. Furthermore, plantation areas that are not used as stipulated in concession permits as well as concessions that have been transferred to new owners may also be subjected to the moratorium. Reportedly, the Government will make use of a single reference map that harmonizes the maps used by different state agencies so as to identify overlapping land concessions. Overall, the moratorium is said to concern about 3.5 million hectares of land, starting with 950 000 hectares that have been proposed by plantation companies for expansions. The nation’s total area under oil palm cultivation is estimated at 11.4 million hectares. Industry sources reiterated their concern that the new moratorium threatens output growth and investment in the palm sector.  "]
[2016,"August","MALAYSIA – biodiesel policy:  The planned shift from B7 (i.e. transportation diesel containing 7 percent of biodiesel) to B10 (10 percent blends) has been delayed pending the outcome of talks between the government and industry stakeholders, notably car manufacturers and petrol station operators (see MPPU July’16). Reportedly, some automakers are concerned about the alleged adverse impact of higher-grade biodiesel on the performance of diesel engines and hence on warranty coverages. Government officials informed that relevant ministries would study and address the concerns raised, adding that the government remains committed to implement mandatory B10 use before the end of 2016.     "]
[2016,"August","SRI LANKA – import policy:  In May 1016, the Government raised the import levy for vegetable oils by LKR 20/kg. The new levies for crude oils and refined oils are, respectively, LKR 130/kg (USD 0.89) and LKR 150/kg (USD 1.03).    "]
[2016,"August","RUSSIAN FEDERATION – GMO policy:  A bill signed in July 2016 prohibits the cultivation of GM crops on the territory of the Russian Federation. The new law also strengthens state control over the importation and processing of GM organisms (and products derived from such organisms) and requires relevant state agencies to monitor the effects of GM organisms on both the environment and human health. The importation of GM organisms and products for scientific research and for food/feed use will continue to be allowed, provided they have been formally registered for such uses."]
[2016,"August","RUSSIAN FEDERATION – palm oil standard:  The government dropped its earlier plans to introduce new safety standards for tropical oils, notably palm oil, citing a lack of scientific evidence for alleged hazards of palm oil consumption to human health. Previously, the government had considered regulating the use of palm oil in food production and introducing stringent requirements regarding the maximum allowed content of hydrogen peroxide in tropical oils (see MPPU Nov.’14 & Aug.’15)."]
[2016,"August","UKRAINE / CANADA – free trade agreement:  In July 2016, negotiations of a free trade agreement between the two countries have been completed. The new agreement will take effect after its ratification by the parliaments of both countries. Under the trade pact, import duties on all agricultural goods are set to be lifted in one go – except for some Canadian tariff lines concerning selected ‘sensitive’ items, including products derived from vegetable oil, such as margarine. However, considering that Canada’s duties on oilseeds, oils and meals are earmarked for immediate elimination, Ukraine’s exports of sunflower oil, rapeseed and soybeans products will enjoy instant duty-free access to the Canadian market."]
[2016,"August","UNITED STATES – GMO policy:  The U.S. Congress passed a federal bill regulating mandatory labelling of food products containing GMOs. The bill, which has been signed into law by the U.S. President on 1 August 2016, will override more stringent measures recently passed in the state of Vermont and considered by other states (see MPPU July’16). The new legislation gives regulators two years to write detailed rules for the industry to follow, and small food manufacturers will have three years to comply. When reworking and updating their labels to inform customers about GM content, companies will have the choice of using straightforward language, symbols or digital bar codes that can be scanned by smartphones. The US Department of Agriculture will determine which biotech crops fall under the new labelling requirement. USDA will also be required to evaluate the effectiveness of digital symbols a year after the law is implemented. The country’s food industry welcomed the compromise bill, saying that it will avoid inefficiencies in the food system and prevent higher food costs. However, critics warned that the option to use electronic labels could limit the bill’s scope and create confusion. They reckon that few customers would click on the digital codes displayed on labels. They also expressed concern that food ingredients that, by the time they are processed, contain almost no GM material (such as soybean oil and beet sugar) might not fall under the law’s definition of GM food.     "]
[2016,"August","Variable export taxes – palm oil:  In August 2016, Indonesia’s tax on crude palm oil shipments will remain at zero, while Malaysia’s tax will drop to 5 percent (from 6 percent applied in July 2016), based on a fall in the calculated reference price.     "]
[2016,"August","Biodiesel news – Indonesia:  State-owned power company PLN informed that it cannot comply with government rules on burning diesel containing 30 percent of palm oil-based biodiesel (known as B30) because such blends would damage its generators. Under regulations released last year, starting in January 2016, Indonesian power firms are required to use B30. Commenting on PLN’s statement, market observers pointed out that lower than expected uptake of biodiesel by the country’s electricity sector could weigh on domestic and international palm oil prices – given that domestic supplies (and hence export availabilities) of palm oil could experience a significant rise. The government’s 2016 target for total domestic uptake of palm oil-based biodiesel (by both the transportation and power generation sectors) is 6.1 million tonnes, a level industry experts consider to be out-of-reach."]
[2016,"August","Environmental measures  –  Colombia:  According to the local press, a Colombian environmental authority ordered a palm oil company to suspend various operations due to alleged violations of environmental regulations, including wastewater dumping and allowing compost-runoff to leach into the local forest."]
[2016,"August","Environmental measures – Indonesia:  The Indonesian Palm Oil Pledge (IPOP), a private initiative launched by leading palm oil producing and trading companies in 2014 to promote sustainable production and jointly establish what land could be cleared to develop new oil palm plantations, has been dissolved. According to the IPOP signatories, the initiative’s original purposes have been fulfilled by recent measures taken by the government – notably the moratorium on peat land development, the creation of a Peat Restoration Agency, the launching of a national standard for sustainable palm oil (ISPO), and the new moratorium on oil palm expansion licenses. Former IPOP members committed to continue their sustainability policies independently and pledged to support the government’s efforts to strengthen and improve ISPO. Some environmental groups commented that the dismantling of IPOP could increase the risk of haze and forest fires in Southeast Asia, given that ISPO standards tend to be less strict than those applied under IPOP, notably with respect to land clearing rules. "]
[2016,"August","Sector development measures – Ghana – oil palm:  Reportedly, in Ghana, the government is ready to approve the establishment of an oil palm board. The board would be tasked to regulate and create a conducive environment for the growth of the oil palm sub-sector. The body would offer a platform for formal interactions between the government and the private sector, especially regarding the implementation of relevant policies, including measures to ensure environmentally sustainable growth. In this regard, the government reiterated its commitment to protect the country’s tropical forests while developing the oil palm sector. Ghana is one of nine countries participating in the Africa Palm Oil Initiative (APOI), a multi-stakeholder programme launched by the Tropical Forest Alliance to help transform the palm oil sector into a sustainable driver of long-term, low-carbon development in the region – in a way that is socially beneficial and protects tropical forests."]
[2016,"August","Sector development measures – India – olive cultivation:  In India, the Government of Rajasthan has set up an olive oil crushing/refining plant and started planting olive saplings imported from Italy, Spain, Israel and elsewhere on state-owned fields. Reportedly, Rajasthan’s agro-climatic conditions are fully suitable for olive cultivation. The state-level project is meant to help reduce the nation’s heavy dependence on imported edible oils (see also MPPU Sep.’15). According to private sector representatives, access to advanced processing technology will be critical for the industry’s development."]
[2016,"August","Sector development measures – Sri Lanka – coconut oil:  Blaming poor adherence to international quality standards for the recent drop in the country’s coconut oil exports, the Government of Sri Lanka is working on measures to ensure that, from next year, only coconut oil products meeting international standards are exported. Recurrent problems affecting coconut oil shipments are said to include fungus contamination and high residue levels of plasticides and polycyclic aromatic hydrocarbons. Reportedly, the government is ready to enforce a new national standard on food safety management, and producers are required to obtain certification prior to exportation."]
[2016,"August","Sector development measures –  Tanzania – sunflower seed:  Sunflower oil processors in Tanzania’s central regions are exploring possibilities of entering into commercial partnerships with the Indian Solvent Extractors’ Association – under the aegis of SITA (Supporting India’s Trade Preferences for Africa), a multilateral initiative implemented by the International Trade Centre. The government-backed partnerships initially envisage the transfer of processing technology from Indian companies to Tanzanian counterparts and, subsequently, the exportation of high-value refined sunflower oils from Tanzania to India.      "]
[2016,"August","Transport infrastructure – Brazil:  Mato Grosso state officials deem improved transport options via Brazil’s northern export corridors (the so-called ‘Arco Norte’) to be the main driving force behind the on-going expansion of soybean plantings in the state. The improvements consist of road upgrades that provide direct access to new terminals on the Amazon River and to seaports along the northern Atlantic coast. These northbound routes reduce the state’s need to ship grains through the highly congested southbound highways to distant ports on Brazil’s southeastern and southern coast (see also MPPU Feb.’16). According to industry estimates, in 2016, a record 34 percent of Mato Grosso’s soybean shipments will transit through the Arco Norte, with the remaining 66 percent heading south. In 2014, the corresponding shares were, respectively, 18 and 82 percent."]
[2016,"August","Standards –  Olive oil – global:  The International Olive Council (IOC) approved a revision in its standard for extra virgin olive oil in a bid to allow oils produced from two specific olive cultivars to meet the parameters for that grade. Under the revised standard, the maximum allowed content of three fatty acids (heptadecanoic, heptadecenoic and eicosenoic acid), which characterize oils produced from the Italian varieties Carolea and Coratina, have been raised. Possibilities that the increased limits could facilitate fraud have been ruled out by a group of experts advising the IOC."]
[2016,"August","Standards – Feed labelling – European Union:  A code of good labelling practices for compound feed jointly developed by Europe’s feed industry and farmer associations has been officially endorsed by the European Commission. The code, which will harmonize practices across EU member states, aims to guide feed manufacturers on how to label their products while enabling farmers to make informed decisions. The code includes a section on claims, which provides guidance on the substantiation of claims and lists permitted/prohibited claims."]
[2016,"August","Certified sustainable palm oil:  In July 2016, RSPO, the industry-led standard setting body for palm oil, held a multi-stakeholder forum in China to promote the trade and consumption of certified sustainable palm oil in the country. Considering that China is the world’s second largest importer and third biggest consumer of palm oil, an increase in Chinese demand for certified produce could provide fresh impetus for global trade in an production of certified sustainable palm oil. In recent years, RSPO members started paying increased attention to developing country markets, notably in Asia, where edible oil consumption is growing at a steady pace – whilst certified sustainable palm oil accounts for an only small part of the market (see also MPPU May & Sep.’12). For China, RSPO’s 2020 target for the share of certified sustainable produce in total palm oil uptake has been set at 10 percent (see MPPU July’15). "]
[2016,"September","ARGENTINA – export policy:  According to local press reports, government officials stated that the gradual reduction (and eventual removal) of Argentina’s export tax on soybeans – a pledge made by the incoming administration at the end of last year (see MPPU Dec.’15 & Feb.’16) – could take longer than originally envisaged, linking the announcement to the country’s ongoing economic recession. After a first reduction (from 35 to 30 percent) in December 2015, farmers were expecting the levy to be lowered by another 5 percentage points early next year, i.e. before the start of the 2016/17 soybean marketing campaign.     "]
[2016,"September","CHINA / CANADA – rapeseed trade:  China agreed to further delay the implementation of stringent rules on rapeseed imports from Canada (see MPPU Mar./Apr.’16). Meant to reduce the risk of blackleg disease spreading to China, the new standard – which would raise costs for Canadian exporters – was due to come into force on 1 September 2016. Reportedly, efforts to achieve a long-term agreement (– acceptable to both sides –) on the terms of Canada’s rapeseed shipments will be stepped up. In Canada, industry experts said that, in view of the remaining uncertainties, exporters could delay their shipments to China until an accord is reached. On the other hand, private sources reported that some firms already made small sales to China conforming to the stricter terms.    "]
[2016,"September","INDIA – food safety policies:  The Government postponed the enforcement date for maximum limits of trans fatty acid levels in fats, oils and fat emulsions (see MPPU Sep.’15) by six months – from 27 August 2016 to 27 February 2017."]
[2016,"September","MYANMAR – export policy:  According to local press reports, the Government decided to relax export restrictions on a number of agri-based products, including sesame oil, mustard seed/oil, sunflower seed/oil, and by-products of edible oil extraction. Reportedly, the measure was taken to allow the domestic industry to tap new export opportunities. Meanwhile, the government is said to be working on ways to ensure that domestic demand for vegetable oil continues to be met.        "]
[2016,"September","RUSSIAN FEDERATION – trade policies – Export policy:   The Government has lowered the country’s duty on sunflowerseed exports outside the Eurasian Economic Union to 6.5 percent, but not less than 9.75 Euro per tonne. The new duty has come into effect on 1 September 2016, replacing the 9.9 percent (but not less than 14.81 Euro per tonne) tariff in place since September 2015 (see also MPPU Sep.’15)."]
[2016,"September","RUSSIAN FEDERATION – trade policies –  Bilateral trade dispute:  A WTO dispute settlement panel set up at the request of the European Union ruled that import duties applied by the Russian Federation on selected products imported from the EU – including palm oil and its fractions – violated WTO rules (see also MPPU Dec.’14). Reportedly, the combined duty rates applied to palm oil in 2014 – i.e. 3 percent, but not less than 90 Euro per tonne – were in excess of the ad valorem bound rate the Russian Federation had agreed to upon joining the WTO in 2012. Since the establishment of the WTO dispute panel in March 2015, the government has adjusted the combined duty to its bound rate.   "]
[2016,"September","UGANDA – agricultural policy:  The Ugandan Government has launched a subsidized crop insurance scheme to assist farmers. Reportedly, depending on farm size and location, 30 – 80 percent of the insurance premiums will be covered by the state. The scheme, which will be operated through a public-private partnership between the Government and the country’s insurers association, is expected to limit government provision of ad-hoc assistance to farmers, help improve farmers’ access to credit, and increase household food security.      "]
[2016,"September","UKRAINE / INDONESIA – free trade zone:  In August 2016, the Ukraine and Indonesia agreed to start consultations on establishing a free trade zone between the two countries. With regard to agricultural products, Ukraine hopes to expand its exports of sunflower seed/oil to Indonesia, where demand for commodities from the oil and fat complex is expanding steadily.   "]
[2016,"September","Variable export duties –  Palm oil – Malaysia & Indonesia:  In September 2016, Indonesia’s tax on crude palm oil shipments will remain at zero, as the reference price has remained below the threshold level of USD 750 per tonne. Malaysia’s palm oil export tax will remain unchanged at 5 percent (despite a slight drop in the calculated reference price)."]
[2016,"September","Variable export duties –  Biodiesel – Argentina:  In May, June, July and August of this year, Argentine biodiesel exports have been taxed at, respectively, 3.96 percent, 5.04 percent, 7.15 percent and 4.99 percent. The circumstance that, since mid-2015, the Government modified the tax on a monthly basis has prompted the local biodiesel industry to call for less frequent changes so as not to disrupt its business. "]
[2016,"September","Sector development measures – India – coconut palm:  The Indian Coconut Development Board will support 18 projects worth INR 128 million (USD 1.9 million) to improve processing and product diversification – and hence value addition – in the coconut sector. The board’s total financial contribution will amount to INR 5.2 million (USD 78 thousand). The projects will focus on the production of copra, desiccated coconut powder, virgin coconut oil and other coconut-based foods as well as charcoal."]
[2016,"September","Sector development measures – Pakistan – olive tree:  As part of a five-year programme launched earlier this year in Punjab Province to promote olive oil production (see MPPU Feb.’16), provincial authorities distributed – free of charge – two million olive saplings to farmers in the region of Pothohar. Beneficiaries will also benefit from training activities on olive grove management and financial support for water source development and drip irrigation."]
[2016,"September","Sector development measures – Vanuatu – coconut palm:  In July 2016, the Government launched a National Coconut Strategy. The nine-year plan aims to revive the country’s coconut industry after the devastation caused by Cyclone Pam last year. The strategy focuses on replanting activities and product diversification."]
[2016,"September","GMO policies – China:  In its five-year plan for science and technology (ending 2020), the Government announced that it will support the development of GM crop varieties – including maize and soybeans – as part of new efforts to make agricultural production more efficient and boost crop output. To date, China has only approved GM technology for cotton. The new plan envisages the commercialization of pest-tolerant maize and herbicide-resident soybean varieties. Most likely, the Government will roll out biotech varieties of industrial crops like maize first, moving to food crops such as soya at a later stage. The launch of biotech food crops would be delayed because of consumer concerns over perceived health risks. GM soy cultivation also faces resistance from the domestic soybean industry, which sells locally grown GMO-free soybeans (for use in food products such as tofu and soy-sauce) at a premium to imported GM soybeans. In anticipation of the introduction of GM food crops into the market, the government will work on a law on GM food safety – including labelling rules for food products exceeding a certain threshold of GMO content. Reportedly, recent proposals to create separate zones for growing non-GM soybeans have been rejected by the government."]
[2016,"September","GMO policies – India:  Tasked with reviewing the available evidence on the suitability of a locally developed GM mustardseed for Indian soils and with assessing potential risks to health and ecology, the government’s Genetic Engineering Approval Committee has issued a favourable assessment on safety tests carried out so far. Such technical clearance needs to be followed by multiple political approvals before the crop can be launched commercially. Meanwhile, the public opposition to GM crops remains strong, and to date only a limited number of non-food biotech crops (notably cotton) are allowed to be grown in India."]
[2016,"September","GMO policies – Philippines:  The Philippine Supreme Court informed that it reversed its December 2015 decision to stop the field testing, propagation, commercialization and importation of GM products in the country (see also MPPU Feb./Apr.’16). The full decision is expected to be released sometime in September 2016."]
[2016,"September","GMO policies – United States:  USDA’s Food Safety and Inspection Service (FSIS) has issued a statement authorizing companies to make labeling claims that no GM ingredients were used in meat, poultry and egg products. The agency has provided detailed guidance on how to make such ‘negative claims’. The absence of GM ingredients needs to be verified by a third-party certifying organization. "]
[2016,"September","GMO industry news – Australia:  Australian rapeseed growers have succeeded in capturing a premium for non-GM produce thanks to voluntary market segregation, according to industry sources. In Australia, cultivation of GM rapeseed has been authorized in Victoria, New South Wales and Western Australia. Strict segregation (including detailed logistic and trade standards) has been introduced in 2007, to separate GM from non-GM rapeseed throughout the delivery supply chain. Industry sources estimate that out of 22 million tonnes of rapeseed exported from Australia since 2010, 15 million tonnes – or about two thirds – has been conventional produce, bought by customers preferring non-GM crops, such as the EU. Reportedly, growers have received an estimated AUD 25 per tonne premium (USD 19) for their non-GM rapeseed sales."]
[2016,"September","Biofuel – national policies – Thailand:  The Government decided to reduce mandatory blending of transportation diesel with palm oil-based biodiesel from 7 percent to 5 percent in July 2016, and further to 3 percent in August 2016. Blending requirements have been lowered in a bid to end a temporary shortage in domestic cooking oil supplies. Reportedly, national palm oil supplies have been lower than earlier anticipated (because of poor yields linked to El Niño), raising concern that soaring cooking oil prices could harm consumers. No date has been provided for the restoration of the 7 percent blending rate. Last year, confronted with a similar situation, the Government softened the blending obligations for a period of three months (see MPPU May’15). Interestingly, in other instances, the Government has intervened in markets to protect palm oil growers from sudden price falls (see MPPU Apr.’16 and Aug./Oct.’15). To better understand the recurrent swings in domestic supplies and prices, the Energy Ministry decided to monitor movements in domestic palm oil stocks, analyzing how these affect the market. In the longer term, the Government remains committed to lift mandatory blending to 20 percent by the year 2036. Last year, the Government already offered to subsidize voluntary use of 20 percent blends by truck drivers (see MPPU July’15). However, the government recently advised that nationwide introduction of 10 percent blends would be postponed to 2018. Industry experts repeatedly questioned the country’s ability to accomplish higher blending rates given weather uncertainties and other challenges faced by the country’s palm oil industry."]
[2016,"September","Biofuel – national policies – United States:  According to its own inspector general, the US Environmental Protection Agency (EPA) has fallen behind on compliance with a number of studies, including a report to Congress on the environmental and conservation impacts of the country’s Renewable Fuels Standard. Allegedly, not having the required reports and studies compromises the agency’s ability to identify, consider and make policy makers aware of any adverse impacts of renewable fuels. Reportedly, EPA also failed to identify a process to update its lifecycle GHG emission analysis for individual renewable fuels. The methodology currently used relies on a report submitted back in 2010."]
[2016,"September","Biodiesel – industry news – New Zealand:  The country’s first commercial-scale biodiesel plant was expected to commence production in August 2016, reported private sources. The concerned company is using inedible tallow (a byproduct of the meat industry typically used in the manufacturing of soap and candles) as feedstock, likely absorbing about 12 percent of the country’s inedible tallow output. The plant’s annual biodiesel output is pegged at 17 000 tonnes.       "]
[2016,"September","Biodiesel – industry news – United Kingdom:  According to industry sources, palm oil is no longer present in the renewable biodiesel that is blended into fossil fuels in the UK. Reportedly, palm oil content started dropping in 2012, and UK biodiesel – whether produced in the UK or imported – is now largely made from waste feedstock, in particular used cooking oil."]
[2016,"September","Certified sustainable palm oil – Company suspension:  The Roundtable on Sustainable Palm Oil (RSPO) ended the suspension from certification that it had imposed last April on one of its members following non-compliance with its standards (see MPPU June’16). Reportedly, the concerned company satisfied the conditions set for readmission. It is now expected to submit quarterly progress reports and will be subjected to independent ground verification after 12 months. Some environmental groups criticized RSPO for readmitting the company before it delivered lasting change on the ground. If global buyers who had disengaged from trading with the suspended member will resume purchases from the company remains to be seen. "]
[2016,"September","Certified sustainable palm oil – GreenPalm certificates:  RSPO confirmed that after December 2016 it will no longer endorse GreenPalm, the certificate-based book & claim system that currently accounts for about half of global trade in RSPO-certified palm/palm kernel oil. Instead, customers will be able to trade certified volumes via RSPO’s recently launched eTrace platform, an alternative book & claim system that guarantees certificate traceability back to individual originating certified mills and crushers (see also MPPU Mar./July’16). Credits traded via eTrace will be subjected to regular RSPO audits. As any other book & claim system, also the new mechanism by-passes the physical supply chain. However, the modified scheme will allow customers to know which certified palm oil mill they are supporting."]
[2016,"September","Certified sustainable palm oil – Smallholder certification:  RSPO reported that a large group of small oil palm growers in South Sumatra, Indonesia, has achieved RSPO certification thanks to the support of a large plantation company and to financial assistance from the RSPO’s Smallholder Support Fund. Made up of seven village level cooperatives, the group counts more than 2 700 independent smallholders cultivating 5 500 hectares. The group plans to sell its certified product through RSPO’s mass balance mechanism, which involves a physical supply chain. Typically, smallholders – who account for about 40 percent of global palm oil output – lack the means to comply with complex international sustainability standards. Indeed, in 2015, smallholder production accounted for no more than 10 percent of global certification (in volume terms). Generally, certification allows independent smallholders to raise their yields and gain access to international market (thereby improving their profits), while at the same time protecting the environment through the adoption of good agricultural practices."]
[2016,"September","Certified sustainable palm oil – Smallholder support:  In West Kalimantan, Indonesia, two home care multinationals, Henkel and BASF, entered into partnerships with NGOs to support smallholder palm oil production. As major buyers of palm and palm kernel oil, the two companies are committed to back the establishment of sustainable supply chains. Under the project, smallholders will be trained in sustainable farming methods with the objective to raise palm fruit yields while making producers eligible for certification according to the criteria of RSPO."]
[2016,"September","Olive sector – Disease control – Italy:  In July 2016, the European Commission opened a second infringement procedure against Italy over alleged delays in applying measures against the spread of the xylella fastidiosa bacterium in Apulia, Italy (see also MPPU Feb.’16). In the meantime, local authorities are working on a draft bill on the management of the disease in the territory, according to press reports. In addition to interventions to stop the further spread of the disease, measures for the recovery of damaged trees, the planting of tolerant varieties or alternative species and landscape protection schemes are under consideration, with the objective to restore the economic and environmental balance in the affected areas. Local authorities have also presented the results of experimental natural treatments and good farming practices carried out in recent months on infected trees, which, are said to have shown visible signs of improvement."]
[2016,"September","Olive sector – Fraudulent marketing:  In Ghana, food authorities reported instances where bottlers of edible oil have marketed low-value oils as olive oil to reap a premium. Deceptive marketing practices have also been reported in France, where Spanish olives have been imported and their oil blended with native produce for sale under local labels, concealing the products geographic origin. "]
[2016,"September","Other industry news – Palm kernel meal:  In New Zealand, a state-owned agribusiness firm plans to stop using palm kernel meal as a feed supplement in its dairy farms. Allegedly, the decision to replace palm kernel products with locally grown alternatives reflects the company’s concern with producing food in a responsible and environmental friendly way as well as efforts to anticipate shifting consumer preferences. Reportedly, the use of palm kernel meal has come under scrutiny after environmental groups linked growth in Southeast Asia’s palm industry to unsustainable farming practices. Meanwhile, a large multinational dairy co-operative in New Zealand said that it had no immediate plans to stop using palm kernel meal, adding that all palm products used by its farmers are responsibly sourced, and that, by 2018, all its palm product supplies will be traceable to plantation level. Last year, the co-operative issued a guideline recommending its farmers to feed their herds a maximum of 3 kg of palm kernel meal per day, citing the need to protect the premium commanded by pasture-based dairy products. New Zealand is the world’s largest single importer of palm kernel meal."]
[2016,"September","Other industry news –  Palm oil:  In Italy, a food manufacturing group reported to have replaced palm oil with alternative oils such as sunflower and extra virgin olive oil in 25 percent of its bakery products. Reportedly, the reformulation process is part of ongoing efforts to reduce the saturated fat content of the company’s food items.   "]
[2016,"November","ARGENTINA – export policy:  The Argentine Government decided to postpone a planned reduction of soybean export taxes to 2018. The cut had been scheduled for end 2016 or early 2017 (see MPPU Dec’15 & Feb’16). Now, the export tax will be reduced – starting in January 2018 – by 0.5 percentage points each month until December 2019. Accordingly, by end 2019, soybean exports will be taxed at 18 percent – compared to the current rate of 30 percent. In the meantime, however, soybean producers in the country’s isolated, northern region will enjoy a tax benefit – as a compensation for higher transportation costs. From March 2017 onward, soy growers in the country’s 10 northern provinces (which lie outside the country’s main soybean belt) will be provided with an export tax refund equivalent to 5 percent of the free-on-board soybean price.",null,"         "]
[2016,"November","CANADA / CHINA – rapeseed trade:  Government officials from Canada and China signed a MOU to facilitate smooth importation of Canadian rapeseed into China, thus ending years-long negotiations over phytosanitary measures to prevent the spreading of blackleg disease from Canada into China (see MPPU Dec’09 & Sep’16). By allowing rapeseed exports to continue under the existing conditions, the agreement provides for stable and predictable trade flows. At the same time, both countries committed to continue their collaborative scientific work on appropriate risk mitigation measures.      "]
[2016,"November","CHINA – agricultural policy:  As a means to curb domestic maize supplies, farmers in China’s main grain exporting province Heilongjiang will receive subsidies of CNY 150/mu (USD 330/ha) for rotating maize crops with soybean. Together with the nation-wide soybean target price of of CNY 4 800 per tonne (USD 705) that is applied since 2014, the measure is likely to significantly stimulate soybean plantings in Heilongjiang next year, thus supporting government efforts to manage the country’s oversupply of maize. Under the provincial programme, which will be enacted on a trial basis over the next 3–5 years, an estimated 0.43 million ha of former maize area are expected to benefit from subsidies, which should translate into a 16 percent expansion in Heilongjiang’s soy area. The government also confirmed its national production targets for the main oilseed crops in the year 2020: 18.9 million tonnes for soybeans, 16.2 million tonnes for rapeseed, and 18.7 million tonnes for groundnut – which compares to output levels of, respectively, 11.6 million, 14.9 million, and  16.4 million tonnes in 2015 (see also MPPU June’16). The figures confirm that the strongest growth is envisaged for soybeans, based on an expansion in plantings at the expense of maize.                  "]
[2016,"November","CHINA – sales from state reserves:  According to unofficial sources, soybeans sales from state reserves through weekly auctions have been suspended in October to facilitate marketing of the new 2016/17 crop. Reportedly, as of 23 September, a total of 1.57 million tonnes of soybeans was sold. Regarding rapeseed oil, state auctions were suspended back in June 2016 (with sales totaling 2.28 million tonnes between December 2015 and June 2016), but resumed last October. Reportedly, as of 19 October, 200 000 tonnes of rapeseed oil have been sold via auctions.         "]
[2016,"November","EUROPEAN UNION – anti-dumping duties on veg. oil-based biodiesel – WTO ruling:  The WTO Appellate Body upheld an earlier panel’s mixed ruling regarding the anti-dumping duties imposed by the EU on biodiesel imports from Argentina, recommending to bring the disputed trade measure into conformity with WTO rules. The previous panel had found that certain aspects of the EU’s investigation into Argentine biodiesel production were in breach of WTO rules (see MPPU Apr’16). Following the formal adoption of the Appellate Body’s report on 26 October, the EU has 30 days to inform the WTO how it intends to achieve compliance. A separate case filed by Indonesia concerning analogous duties charged on biodiesel imports from that country is still under examination at the WTO (see MPPU Dec’15)."]
[2016,"November","EUROPEAN UNION – anti-dumping duties on veg. oil-based biodiesel – EU Court of Justice ruling:  On 15 September, in a parallel domestic proceeding based on cases filed by individual Argentine and Indonesian biodiesel producers, the EU’s General Court ruled that the anti-dumping duties imposed on biodiesel imports from Argentina and Indonesia infringe basic regulations and should be annulled. Similar to the WTO case, the EU judges found that the European Commission’s calculations of the costs of biodiesel production in Argentina and Indonesia were based on incorrect considerations. The European Commission and the EU’s biodiesel industry have two months to file an appeal to the European Court of Justice. "]
[2016,"November","INDIA – coconut procurement:  The State Government of Karnataka has set up procurement centers for coconut to assist farmers faced with severe price downfalls. Reportedly, coconuts will be procured at INR 1 600 per quintal (USD 240 per tonne) in six districts across the state. "]
[2016,"November","INDIA – market policies  –  Import duties:  As part of efforts to check food price inflation, the Government of India decided to lower the import duties on crude palm oil and refined edible oils by 5 percentage points to, respectively, 7.5 percent and 15 percent. Reportedly, the lower duties will remain in place until end February 2017. Market observers pointed out that the temporary reduction in duties could harm the commercialization of the country’s bumper 2016/17 oilcrop harvest."]
[2016,"November","INDIA – market policies – Stock-holding regulations:  Federal provisions limiting the amount of edible oil and oilseed stocks that private traders are allowed to hold have been extended for another year until September 2017 (see also MPPU Oct’15). The provision is aimed at preventing hoarding and unscrupulous trading which has led to upward spirals in food prices in the past."]
[2016,"November","INDONESIA – market regulation:  The Government of Indonesia has revised the reference prices for basic food items, including soybeans. The soybean farm gate floor price intended to protect farmers against sharp price drops has been raised to IDR 8 500 per kg (USD 648 per tonne), while the price ceiling meant to protect consumer from price surges has been set at IDR 9 200 per kg (USD 701 per tonne). The price limits will be reviewed every four months.     "]
[2016,"November","MALAYSIA – biodiesel policy:  After several postponements, the planned shift to higher biodiesel mandates could take place on 1 December 2016, according to unofficial sources (see also MPPU Aug’16). The transportation sector would shift from mandatory consumption of B7 blends (i.e. diesel containing 7 percent of palm oil-based biodiesel) to B10 blends, starting with the state of Johor. At the same time, the industrial sector would be expected to move to B7 blends nation-wide.   "]
[2016,"November","PERU – biodiesel anti-dumping duties:  The Peruvian Government has announced the replacement of provisional anti-dumping duties imposed last February on biodiesel imports from Argentina (see MPPU Mar’16) with definite ones. The duties, which are set to remain in place for five years, will be charged at variable rates (ranging from USD 122 to USD 192 per tonne), depending on the biodiesel manufacturer in Argentina. The measure is meant to shield biodiesel production in Peru from allegedly unfair competition by Argentine producers. Argentina is the main supplier of biodiesel to Peru, where consumption of B5 blends (i.e. transportation diesel containing 5 percent of biodiesel) became mandatory in 2011. "]
[2016,"November","SRI LANKA – import policy:  The special commodity levy charged on imported vegetables oils to protect domestic oilseed producers and oil processors has been raised by LKR 20/kg in June 2016 (see also MPPU Aug.’16). The new levies for crude and refined oil are, respectively, LKR 150/kg (USD 1.02) and LKR 170/kg (USD 1.15)."]
[2016,"November","TURKEY – import policy:  In September 2016, Turkey raised its import duties on safflower seed and sunflower oil to prevent lower import prices from hurting domestic producers and crushers. The tariff rates for safflowerseed, crude sunflower oil and refined sunflower oil have been set at, respectively, 23.4 percent, 36 percent and 67.5 percent – compared to, previously, 4 percent, 12 percent and 50 percent."]
[2016,"November","UNITED STATES – agricultural policy:  The USDA informed that many of the 1.7 million farms that enrolled in either the Agriculture Risk Coverage (ARC) or Price Loss Coverage (PLC) programmes introduced in 2014 (see MPPU Feb’14) will receive safety-net payments due to market downturns during the 2015 crop year. USDA expects to make more than USD 7 billion in payments to compensate farmers for decreases in revenues or crop prices, which amounts to over 10 percent of the projected 2016 net farm income. For comparison, in 2015, payments under the two programmes totaled USD 5.2 billion. In both years, a high percentage of growers of soybeans, groundnut and other oilseeds have participated in the concerned risk management programmes."]
[2016,"November","UNITED STATES – biofuel policy:  A United States district court has ruled that biodiesel blending mandates applied in the state of Minnesota since 2005 do not conflict with the federal Renewable Fuel Standard (RFS), and that the RFS therefore does not preempt Minnesota’s mandates. Under Minnesota state law, diesel fuel sold within the state is required to contain a specific percentage of biodiesel (currently 10 percent, with a transition to 20 percent scheduled for 2018 – see MPPU June’14). The plaintiffs – oil, gas, trucking, auto manufacturer and auto dealership trade associations – had argued that Minnesota’s per-gallon blending requirements, geographical blending obligations and timing restrictions are not compatible with the national RFS. Minnesota was the first state to pass a biodiesel blending law, but other US states have subsequently followed suit."]
[2016,"November","Variable palm oil export tax – Indonesia, Malaysia:  Indonesia raised its tax on crude palm oil exports for October to USD 3 per tonne (compared to the zero USD rate in place since July 2016), but lowered it again to zero USD for November, in line with movements in the calculated reference price. In Malaysia, the export tax was raised from 5 percent to 6.5 percent for October, but was left unchanged for November – despite a small drop in the relevant benchmark price. Related to this matter, last September, Malaysian government officials proposed to harmonize the two countries’ export taxes, in a bid to reduce competition between the world’s two leading suppliers for global market share."]
[2016,"November","Sector development measures  – Fiji – coconut:  The Government of Fiji has set aside funds for the rehabilitation of the country’s coconut industry, following the damage inflicted by cyclone Winston earlier this year. The funds will be used to source coconut seeds and raise seedlings from areas not affected by the hurricane. As a complementary measure, the government has raised the price of copra from USD 780 to USD 1 000 per tonne. Furthermore, small-scale producers will receive financial assistance for purchasing equipment to produce virgin coconut oil."]
[2016,"November","Sector development measures – Pacific region – coconut:  A regional initiative aimed at (i) improving the competitiveness of small producers in the Pacific coconut industry, (ii) enhancing regional policy integration, (iii) strengthening links in local value chains, and (iv) supporting capacity building has been launched by the Pacific Community (SPC) together with the European Union. Reportedly, the three-year, 3.5 million Euro (USD 3.8 million) project, will start with the implementation of pilot projects in Samoa and Vanuatu. Under the initiative, training and awareness programmes will be developed, along with a manual on risk management and mitigation tools for farmers, processors and other stakeholders. "]
[2016,"November","Non-GM and organic vegetable oil:  Contending with shifting consumer preferences, multinational grain trading firms are stepping up efforts to offer food ingredients perceived as more natural. Recently, one company started offering on a commercial scale high-oleic sunflower oil certified as not genetically modified, while another company decided to add verified organic soybean oil to its existing range of certified non-GM soy and rapeseed oil. While helping their customers meet increasing demand for non-GM and organic products, the companies are seizing value-added opportunities presented by specialty supply chains."]
[2016,"November","Olive tree – disease control:  The United Nations Food and Agriculture Organization has launched a technical cooperation programme aimed at preventing the spread of xylella fastidiosa – a bacterial disease blamed for devastating olive trees in Southern Italy (see MPPU Aug/Dec’15) – to North Africa and the Middle East. Tasked to improve the technical capacity of local institutions and farmers, the project includes early detection, monitoring, diagnostic and phytosanitary activities."]
[2016,"November","Glyphosate:  The United States Environmental Protection Agency (EPA) proposed to classify glyphosate, a widely used and increasingly controversial herbicide, as ‘not likely to be carcinogenic to humans at doses relevant for human health risk assessment’. The EPA’s position is scheduled for review, along with other material, by a federal scientific advisory panel in December 2016, after which a final assessment may be published. Recently, doubts about the herbicide’s effectiveness and about potential environmental/health hazards associated with its use have emerged in several countries (see MPPU Feb’14, Apr/May/Dec’15 and Mar/Jul’16)."]
[2016,"November","Futures Markets:  The CME Group informed that, from 1 November 2016, the maximum daily price change permitted on soybean contracts at CBOT is 70 US cents per bushel – up 5 US cents from the limit in place since April 2016. The new limit will remain in effect until May 2017."]
[2016,"November","Palm oil – sustainable production and certification – Ecuador:  In Ecuador, where close to 90 percent of palm oil is sourced from smallholders, the Government is working on a jurisdictional approach for sustainable palm oil production, according to RSPO (Roundtable on Sustainable Palm Oil), the world’s principal body for sustainability certification. Set to promote inclusive certification methods for smallholders, the initiative will build on close collaboration between local stakeholders and provincial governments to curb the use of environmentally harmful practices while also improving the welfare of small-scale producers. In close collaboration with key stakeholders such as palm oil companies, NGOs and UN-REDD (the United Nations Collaborative Scheme on Reducing Emissions from Deforestation and Forest Degradation in Developing Countries), pilot programmes relying on RSPO principles and criteria have been launched. Workshops will be held to introduce the concept of sustainability to smallholders and to improve capacity building. Comparable initiatives are already underway in selected regions of Malaysia and Indonesia."]
[2016,"November","Palm oil – sustainable production and certification – Gabon:  A southeast Asian agri-business firm reported advancements in its African palm oil operations. According to the company, its new palm plantation in Gabon has gained RSPO New Planting Procedure verification, while a working plantation and mill have achieved full RSPO certification. Reportedly, the company acquired the land for its plantations on leaseholds from the Government of Gabon, complying with the Free Prior and Informed Consent process and including the development of social management plans. Furthermore, in line with RSPO guidelines, two thirds of the acquired land has been set aside for conservation of biodiversity and forest carbon and for the protection of water catchments, said the company."]
[2016,"November","Palm oil – sustainable production and certification – India:  The Indian Solvent Extractors Association, the country’s principal vegetable oil trade group, has joined forced with an international NGO and national research institutions to develop a country-specific sustainability framework for palm oil production. While drawing on the experiences of Malaysia and Indonesia, the new standard would be tailored to the country’s ecologic, economic and social conditions. The initiative will focus on the formulation of best-practices norms on production for Indian growers. Currently, the country imports around 9 million tonnes of palm oil each year, while annual domestic palm oil output stands at 200 thousand tonnes. Considerable expansion possibilities are said to exist in India’s southern and north-eastern states (see also MPPU June’16)."]
[2016,"November","Palm oil – sustainable production and certification – Organic & fair trade palm oil supply chain:  A group of private companies has launched Palm Done Right, an international awareness campaign aimed at promoting sustainable forms of palm oil production via education programmes that engage industry players, consumers, the media and other stakeholders. Members have subscribed to, inter alia, (i) organic palm oil production, including natural pest management, multi-cropping and composting; (ii) establishing plantations only on existing crop land or degraded land; (iii) guaranteeing fair trade premiums to growers; (iv) employing low-impact techniques for refining palm oil; and (v) traceability of palm oil throughout the entire supply chain. At the moment, the mostly US- and EU-oriented supply chain relies on small quantities sourced in Ecuador, Sierra Leone and Ghana."]
[2016,"November","Trans fat-free edible oil processing:  Trans fatty acids develop when vegetable oils are hydrogenized to increase their stability. As trans fats are known to be hazardous to human health, numerous countries have regulated their presence in food chains (see MPPU Dec’09, June’13, July/Sep’15, and Feb’16). According to industry sources, a trans fat-free oil processing technique has now been developed and is ready to be used by a global agribusiness and food company. The new technology, which is based on enzymatic interesterification, is described as a healthy and more efficient alternative to partial hydrogenation. Allegedly, the new method produces zero trans fatty acids, requires fewer processing steps and occurs naturally at a lower, energy saving temperature – while also enhancing the stability of edible oils."]
[2016,"November","Fortified edible oil – India:  After Gujarat, also Rajasthan has accomplished full voluntary fortification of edible oils, state government official informed. Reportedly, throughout the state territory, only oil fortified with Vitamin A and D is being sold. Fortification is seen as significant step in the fight against malnutrition, especially among the rural population."]
[2016,"December","CANADA – health policy – Trans fat:  To protect consumers’ health, Canada’s Health Ministry is proposing to ban industrial trans fats (which are generated when vegetable oils are partially hydrogenated for improved stability) in foods sold in the country and has called for comments by stakeholders. Under the proposal, food companies would be granted a 12-month implementation period to dispose of existing stocks and make the necessary changes in food formulations. Past government efforts to reduce the presence of trans fats in foods did not yield the hoped-for results (see MPPU Sep’11 & Jul’16 concerning Canada, as well as MPPU Jun’13 on a global study regarding the effectiveness of policies to regulate trans fats)."]
[2016,"December","CANADA – health policy – Nutrition labelling:  The country’s health authorities have also opened consultations on proposed changes to front-of-package labelling for foods high in nutrients that are a public health concern, namely sugars, sodium and saturated fat. Under the proposal, food companies would have to change food labels to make information on content in concerned nutrients more visible and easier to understand. The use of health claims would also be regulated under the new proposal."]
[2016,"December","CANADA – transportation policy:  In November, the Government presented its ‘Transportation 2030’ strategy, which proposes permanent measures to ensure efficient rail movement of goods – especially grains and oilseeds – to the country’s export hubs. The move has been triggered by the weaknesses exposed in Canada’s rail shipping system following the record 2013 crop, which led to successive temporary measure designed to overcome the logistic hurdles faced by the agricultural sector (see MPPU Sep’14, Jan’15 & Jun’16). The measures in place at present are set to expire in mid-2017. Upon completion of in-depth consultations with stakeholders along the entire supply chain, new legislation replacing the 1996 Canada Transportation Act and the 2014 Fair Rail for Grain Farmers Act could be in place in the spring of 2017. "]
[2016,"December","CANADA / EUROPEAN UNION – trade agreement:  On 30 October, the EU and Canada formally signed the bilateral Comprehensive Economic and Trade Agreement (CETA), which opens the way for the accord’s provisional application and for formal ratifications by national parliaments. For oilseeds, a key element of CETA is the elimination (immediately upon implementation) of tariffs on Canadian rapeseed oil entering the EU – a measure that, according to the Canola Council of Canada, will allow Canadian exporters to raise their sales to the EU by up to USD 90 million per year (see also MPPU Nov’13 & Nov’14). Provisional implementation of the trade pact is expected for next year. ","    "]
[2016,"December","CHINA – rapeseed oil state reserves:  Since the resumption of rapeseed oil sales from state reserves in mid-October 2016, weekly auctions have been held. As of 23 November, a total of 692 000 tonnes have been offered, all of which was bought by traders. The average auction price increased gradually, amounting to CNY 5 900 per tonne in mid-October and CNY 6 570 per tonne towards the end of November (respectively, USD 857 and USD 955)."]
[2016,"December","COLOMBIA – biodiesel policy:  In Colombia, where fuel and biofuel prices are state-regulated, the Government is considering to align domestic biofuel prices with the lower world market levels – a measure that could make local production of palm oil-based biodiesel unviable. On 5 October, the government decided to freeze the domestic biodiesel price at COP 9 966 per liter (USD 3.32). However, one month later, following consultations with the industry, the Government decided to lift the price freeze. Deliberations on the reform of the current price fixation mechanism are expected to continue."]
[2016,"December","EUROPEAN UNION – biofuel policy:  In line with earlier proposals (see MPPU Aug’16), on 30 November, the European Commission published its plan for the revision of the EU’s Renewable Energy Directive. For the transportation sector, the proposal envisages a progressive reduction of food-based biofuels and their replacement by more advanced biofuels. The shift is aimed at minimizing Indirect Land-Use Change (ILUC) impacts and realizing the potential for de-carbonizing the bloc’s transportation sector, thus ensuring that the EU’s emission reduction commitment are met. Under the proposal, the maximum contribution (in energy terms) of conventional (or first-generation) food/feed crop-based biofuels, which includes vegetable oil-based biodiesel, would gradually fall to 3.8 percent in 2030 (compared to 7 percent in 2021). At the same time, the share of so-called ‘advanced’ (or second-generation) biofuels made from various types of biomass, such as agricultural residues, would rise from 1.5 percent to 6.8 percent. As of January 2021, the required minimum GHG emission savings from the use of advanced biofuels would amount to 70 percent. As to conventional biofuels, the proposal does not distinguish between different types of conventional biofuels, leaving it to individual member states to determine that breakdown when implanting the rules. To go into effect, the Commission’s proposal requires approval by both the European Parliament and individual member states. Industry representative criticized the proposal: while they welcomed the plan to gradually phase-in the use of advanced biofuels, they oppose the proposal to replace conventional biofuels by advanced biofuels."]
[2016,"December","INDIA – special farm support measures:  The central government has taken steps to provide relief to farmers and small traders of agricultural good affected by its decision to ban the circulation of some bank notes. In particular, the country’s National Bank for Agriculture and Rural Development (NABARD) was instructed to provide additional loans to enable farmers to buy seed and fertilizers for the cultivation of winter-sown crops, including rape and mustardseed. Other measures taken include the relaxation of cash withdrawal norms, the permission to purchase seeds with outlawed bank notes at selected government stores, and extended time limits for the payment of crop insurance premiums.               "]
[2016,"December","INDIA – price support system  –  Minimum support price – rapeseed:  The government raised the minimum support prices (MSP) for winter-grown (rabi) 2016/17 crops. The MSP for rapeseed, including a special bonus reserved for crops characterized by domestic supply deficits (see MPPU Jul’16), has been raised to INR 3 700 per quintal (USD 548 per tonne), up 10.4 percent from last year’s level."]
[2016,"December","INDIA – price support system – Government procurement – groundnut:  Acknowledging that, in Gujarat, this year’s bumper groundnut crop caused market prices to fall below the MSP, the central government approved the procurement of unshelled groundnuts in Gujarat at the guaranteed price of INR 4 220 per quintal (USD 626 per tonne). The National Agricultural Cooperative Marketing Federation (NAFED) and the Small Farmers' Agribusiness Consortium (SFAC) have been entrusted with the procurement operation. With a view to assist affected farmers further, the country’s edible oil industry association also appealed to the government to allow the exportation of groundnut oil in bulk. Currently, groundnut oil exports are only permitted in consumer packs of 5 kg, at a fixed minimum price (see MPPU Mar’15)."]
[2016,"December","MALAYSIA – consumer support:  In November, the Government introduced changes to the country’s cooking oil price stabilization mechanism, to address weakness found in the scheme’s management and because government outlays for subsidized palm oil sales swelled due to rising palm oil prices. Under the new rules, low-income groups will continue to have access to 1 kg cooking oil packets at a subsidized price of RM 2.50 per pack (USD 0.57), whereas cooking oil in bottles will be sold at market prices. According to government officials, under the new arrangement, the discount will continue to reach the intended lower income groups."]
[2016,"December","MALAYSIA – biodiesel policy:  Contrary to earlier announcements, the government decided to defer the planned shift to B10 for the transport sector and to B7 for the industrial sector – i.e. diesel fuel containing, respectively, 10 and 7 percent of palm oil-based biodiesel – to a later, unspecified date (see also MPPU Aug & Nov’16). Government officials explained that the prevailing large price gap between mineral oil and palm oil has significantly raised the cost of implementing the higher mandates, risking to unduly burden consumers. The shift was deferred until a more suitable time, i.e. until the price gap diminishes. The country’s palm oil producers remain in favour of the move, which, by raising annual domestic palm oil use by an estimated 800 000 tonnes, would help bring down the country’s palm oil stocks and support prices.     "]
[2016,"December","RUSSIAN FEDERATION – GM soy imports:  Russia’s Federal Service for Veterinary and Phytosanitary Surveillance signed agreements with counterpart agencies in Argentina and Paraguay to regulate imports of GM soybeans/soybean meal from the two countries into the Russian territory. Trade in the concerned products foundered earlier this year, following the detection of GMO lines that were not registered in the Russian Federation. To guarantee the absence of unregistered GMO lines, all future consignments from Argentina and Paraguay will be accompanied by official certificates detailing which GMO lines are present.        "]
[2016,"December","UNITED STATES – biofuel policy:  The US Environmental Protection Agency (EPA) increased the targets for renewable fuel consumption under the country’s Renewable Fuel Standard. Although the standards have been kept below the statutory targets set in 2007 to reflect changing market realities, the steadily increasing volumes continue to support Congress’s intent to expand total consumption of renewable fuels, EPA said. The agency finalized the volume requirements and associated percentage standards for total, conventional and advanced renewable fuels for the year 2017, as well as the volume for biomass-based diesel in 2018. The volume of total renewable fuel will rise to 19.28 billion gallons in 2017, up 6.5 percent form 2016 but significantly below the target originally set by Congress. Within that total, the volume of non-advanced/‘conventional’ biofuels (mostly maize-based ethanol) will increase to 15 billion gallons, finally meeting the congressional goal; and advanced biofuels, which are required to achieve at least 50 percent lifecycle GHG emission reductions, are set at 4.28 billion gallons – up 19 percent from 2016, but still below the original congressional target. Under the advanced biofuels category, biomass-based diesel (produced from vegetable oils, notably soybean oil, and animal fats) is set to grow by 100 million gallons in both 2017 and 2018, i.e. to volumes twice the minimum target mandated by Congress. In addition, vegetable oil-based diesel may also qualify under the ‘undifferentiated advanced biofuels’ category. Given that several of the above final targets exceed the proposals unveiled by EPA earlier this year, a higher than previously anticipated volume of feedstock, in particular of soybean oil, might be required to fulfill the new US mandates – a prospect that triggered price spikes across vegetable oil markets world-wide.   "]
[2016,"December","UNITED STATES – export promotion:  New funding has been made available through USDA’s Market Access Program (MAP) and Foreign Market Development Program (FMD) to assist agricultural commodity organizations in their efforts to expand commercial exports. With regard to oilseed associations, the American Soybean Association, the American Peanut Council, and the National Sunflower Association have been allocated a total of USD 8.8 million tonnes for fiscal year 2017, which represents a 15 percent increase over FY 2016."]
[2016,"December","VENEZUELA – import policy:  The Government decided to suspend for one year – starting on 27 October 2016 – the import tariffs and value added taxes for agricultural products characterized by domestic supply deficits. Soybeans, soybean oil, soymeal, groundnuts, crude palm oil and butter are included in the list of exempted products.      "]
[2016,"December","Variable palm oil export tax – Indonesia, Malaysia:  In Indonesia, the export tax on crude palm oil (CPO) remains at zero USD in December 2016, given that the CPO reference price remained below the USD 750 per tonne threshold level, above which duties are charged. Malaysia has lowered its export tax for December to 6 percent (from 6.5 percent in place in November), reflecting a drop in the relevant benchmark price.              "]
[2016,"December","Sector development measures  – Tanzania - sunflowerseed:  The governments of Denmark, Ireland, Sweden and Switzerland have established a facility (named Agriculture Markets Development Trust, AMDT) to strengthen selected commodity chains in Tanzania, including the country’s sunflowerseed value chain. Under the 10-year initiative, new partnerships with both private operators and government agencies will be formed to (i) improve the availability of and access to improved seed varieties by smallholder farmers, (ii) promote pro-poor contractual arrangements along the value chain, and (iii) enhance the access of small farmers, small-scale processors and their associations to financial and other services. Ten regions in the country have been identified for pilot interventions. In addition to creating new income and employment opportunities, the project aims at helping reduce the country’s dependence on imported vegetable oils."]
[2016,"December","Sector development measures –  Tunisia – olive oil:  The European Bank for Reconstruction and Development (EBRD) is lending EU 5 million (USD 5.3 million) to Tunisia’s olive oil industry to support the sector’s development and promote the exportation of bottled oil. Tunisia is the world’s fifth largest producer of olive oil and ranks third among exporters. Currently, most of the country’s production is exported in bulk. End-consumers tend to be unaware of the product’s origin because, typically, olive oil from Tunisia is blended with other origins, in particular Italian and Spanish olive oils. By promoting the bottling of olive oil in Tunisia, EBRD wants to create a value added product that offers higher economic returns and helps the country build a brand."]
[2016,"December","Pesticide issues – China – pesticide residue levels:  Draft standards establishing maximum residue levels for pesticides on various agricultural crops, including key oilcrops, have been published for comment by the Chinese authorities."]
[2016,"December","Pesticide issues – Canada – neonicotinoids:  The federal government proposed a nation-wide phase-out of pesticides belonging to the neonicotinoid family, citing rising evidence of accumulation in waterways and harm to aquatic insects and bees. Neonicotinoids are widely used on oilseed and other crops, as well as in forestry and on pets. In the province of Ontario, their use is subject to strict controls since mid-2015. Elsewhere, approvals have been withdrawn in the United States last year, while, in the European Union, the use of neonicotinoids is banned since 2013 (see MPPU June’13, Jul&Dec’15)."]
[2016,"December","Pesticide issues – United States – dicamba approval:  The US Environmental Protection Agency has approved the use of a specific, low-volatility formula of dicamba herbicide on soybean and cotton plants that have been genetically modified to tolerate dicamba (see also MPPU Apr’16). The new herbicide is expected to help farmers control weeds that have developed resistance to other herbicides, notably glyphosate. To address concerns that the use of dicamba could eventually result in dicamba-resistant weeds, EPA’s approval includes conditions meant to ensure that weed resistance is successfully managed. The approval is set to expire after two years to allow introducing changes, if necessary. The authorization also includes drift mitigation measures and safety precautions intended to exclude health risks to people living near treated fields. Monsanto, the company that produces the new dicamba formulation, still needs to secure regulatory approval from individual states before the product can be marketed to US farmers.           "]
[2016,"December","Research and Development – Non-GM rapeseed:  A US-based seed company specialized in advanced, non-transgenic breeding techniques has developed a non-GM, herbicide-tolerant rapeseed variety using a patented ‘gene-editing’ process (see also MPPU Sep’15). Reportedly, the new technology allows breeders to make precise genetic changes in a plant’s genome without introducing foreign genetic material into the plant – hence its non-GM and non-transgenic character. The new rapeseed variety is said to provide the benefits of genetic engineering – without the usual regulatory restrictions and consumer criticisms. Limited commercialization has begun in the northern United States, while, in Canada, the variety’s release hinges upon local regulatory approval, which is expected for next. The new product could have important implications for the rapeseed industry in terms of market access, particularly in markets that are reluctant to buy GM products."]
[2016,"December","Research and Development – Soybean disease control:  US researchers patented a technology that could help control the spread of the soybean cyst nematode – a dangerous pest found in most of the United States, South America and Asia. Reportedly, the new technology allows to ‘silence’ certain genes in the nematode that would stop it from reproducing. As the technology requires the genetic modification of soybeans, it will have to undergo regulatory scrutiny before it is made commercially available."]
[2016,"December","Research and Development – Omega-3 enriched rapeseed oil:  Efforts are underway to develop an omega-3 bearing rapeseed oil for use as both a fish oil substitute in global aquaculture industries and a functional food ingredient. The search for a viable fish oil substitute is driven by the persistent global supply deficit in marine oils. Although it is possible to produce omega-3 fatty acids from algae or fungi, prohibitively high production costs make these options unprofitable. Therefore, the private sector has invested in technologies to transplant genes bearing the targeted fatty acids from algae into rapeseed, so as to create a sustainable, plant-based source of omega-3s. Once these techniques are optimized, large-scale production of omega-3 enriched rapeseed oil is deemed feasible and would ease harvesting pressure on finite wild fish populations, industry sources say. Testing and regulatory approval of the enhanced rapeseed are underway and commercialization is expected sometime after 2020. The new product could also broaden access to omega-3s in human diets, possibly making an essential fatty acid with high health benefits more available and affordable to populations around the world. (On past efforts to raise the essential fatty acid content in other vegetable oils see MPPU Feb’10, Aug’11, June’13 & Feb/May/Jul’14.)"]
[2016,"December","Research and Development – Olive oil – testing for adulteration:  A team of Italian researchers has identified new markers to detect fraud in refined oils – a major concern in olive oil marketing, where extra virgin olive oils are often blended with refined, cheaper oils. By identifying compounds that help reveal if refined oil has been added to virgin oil, the scientists have delivered an additional analytical tool to combat adulteration (see also MPPU May’14 on a comparable tool)."]
[2016,"December","Research and Development – Moringa oil for biodiesel:  An Indian company specialized in bioenergy crop R&D announced the launch of a new high-yielding, pest-tolerant variety of moringa oleifera. Moringa is a fast-growing, drought-resistant tree native to northwestern India that is widely cultivated in tropical and subtropical areas for various food and non-food purposes. While to date moringa oil has been used mainly as a high-value food supplement and ingredient in cosmetic/medicinal products, the high-yielding variety developed in India is meant for use as a biodiesel feedstock.       "]
[2016,"December","Olive tree disease spread:  Xylella fastidiosa, the bacterial disease that since its outbreak in southern Italy in 2013 poses a serious threat to olive production in the Mediterranean Basin, has been detected for the first time in Spain, on the Balearic island of Mallorca. Following the disease’s discovery on cherry and oleander plants, local authorities have imposed bans on the movement of plant material and started testing other potential host plants, in addition to destroying affected plants. (The first case of infection reported from outside Italy concerned the Island of Corsica in France, in mid-2015 – see MPPU Aug’15).  "]
[2016,"December","Erucic acid – health issues:  The European Food Safety Authority (EFSA) delivered a scientific opinion on animal/human health risks related to the presence of erucic acid (EA) in feed and food. EA occurs naturally, together with other fatty acids, in the oil and meal of rapeseed and mustardseed. While natural forms of these oilseeds contain high levels of EA, levels in varieties cultivated for food use are typically below 0.5 percent. In the European Union, maximum limits for EA as a contaminant in vegetable oil/fat and food products are in place since 1976. EFSA’s study analyzes how individual food groups contribute to the presence of EA in human diets, identifies the target organs for toxic effects after prolonged exposure, and establishes tolerable daily intake levels. The agency reckons that EA is not a safety concern for most humans, although it may pose some long-term health risks for children. With regard to animals, the levels of EA present in animal feed may pose health risks for chickens, according to EFSA. "]
[2016,"December","Palm oil – sustainability issues –  RSPO policies:  In its last general assembly, the RSPO – the world’s leading, industry-backed standard setting body for palm oil – decided to (i) implement and monitor RSPO remediation and compensation procedures in an effective and transparent manner; (ii) ensure that members from all sectors equally comply to and abide with the requirements of the organization; (iii) improve the protection of human rights by providing support to complainants and community spokespersons; and (iv) promote smallholder inclusivity in sustainable palm oil supply chains. The body also informed that action has been taken against numerous members for not submitting annual progress reports."]
[2016,"December","Palm oil – sustainability issues – RSPO – member withdrawal:  Last October, a Peruvian palm oil producer decided to voluntarily withdraw from the RSPO. According to a complaint filed by an indigenous community, the concerned company cleared community lands, destroyed natural forests, and planted oil palm on native customary land, allegedly violating several RSPO rules and principles. (Earlier this year, a large palm oil grower in Southeast Asia also decided to withdraw from RSPO, citing sustainability issues in its supply chain – see MPPU June’16)."]
[2016,"December","Palm oil – sustainability issues – High carbon stock approach:  A working group including palm oil producers and NGOs agreed on a unified approach to implementing “no deforestation” pledges by private companies. In particular, consensus has been reached on a single methodology for determining what constitutes a ‘High Carbon Stock’ landscape. The agreement enables companies to follow a coherent set of principles when implementing commitments to ‘no deforestation’ in their palm oil operations and supply chains. The group also issued a list of still outstanding issues, including the development of systems to ensure high quality assessments, independent verification, and means of redress for communities whose rights are infringed."]
[2016,"December","Palm oil – sustainability issues – African palm oil initiative:  The governments of seven African palm oil producing countries, which together represent 70 percent of Africa’s tropical forests, pledged to protect their forests by shifting to sustainable oil palm development, with support from the private sector and civil society and using the platform of the Tropical Forest Alliance. A joint, unprecedented declaration to this effect has been signed at the COP22 climate change talks in Marrakesh by officials from the Central African Republic, Côte d’Ivoire, the Democratic Republic of Congo, Ghana, Liberia, the Republic of Congo and Sierra Leone. The signatories agreed to place sustainability, human rights protection and collaboration with industry, indigenous people and civil society groups at the center of the expanding palm oil industry in West and Central Africa. Evidently, the concerned governments have recognized the significant market signals that many global businesses have provided through their policy to source sustainably produced palm oil."]
[2016,"December","Palm oil – sustainability issues – Labour right issues:  According to Amnesty International, several global food/household good companies sourced palm oil from plantations in Indonesia where labour abuses were uncovered. The concerned palm oil producer has welcomed the NGO’s report, stating that it helped highlight labour issues within the wider industry and in Indonesia in particular. The company recognized the need for better monitoring and enforcement its labour related commitments. With regard to the concerned consumer good companies, the fact that all of them claim to use ‘sustainable palm oil’, suggests that certification alone may not be sufficient to resolve the highlighted issues. Finding a solution will require the collaboration of governments, companies and civil society organizations, the palm oil company said."]
[2016,"December","Biogas from palm oil mills:  Reportedly, an Indonesian palm oil company is producing excess electricity in its power plants that run on biogas produced from palm oil mill effluent (POME). POME – the waste water discharged at palm oil mills during sterilization, extraction and clarification processes – produces large amounts of methane gas via anaerobic digestion. The company is appealing to private investors and state electricity providers to buy its surplus power (see also MPPU Apr’15). "]
[2016,"December","Futures markets – CME product specification:  The CME Group informed of a reduction in the protein content for its soymeal futures contract by 0.5 percent, to 47.5 percent, as of 15 December 2016. Deliveries against the contract will be accepted up to a minimum of 47.0 percent. The downward adjustment was made to reflect the decreasing protein content of US-grown soybeans.        "]
[2017,"January","ARGENTINA – export policy:  The Government of Argentina confirmed that, during 2017, the country’s export tax on soybeans will remain unchanged at 30 percent, whereas between January 2018 and December 2019 it will be reduced by 0.5 percentage points each month until it reaches 18 percent (see also MPPU Nov’16). The same half-point-per-month reduction will apply to the country’s export duties on soymeal and soyoil, which currently stand at 27 percent."]
[2017,"January","CHINA – rapeseed oil state reserves:  Since their resumption in October last year, auctions of rapeseed oil from state reserves took place on a weekly basis in China. As of 11 January 2017, a total of 1.39 million tonnes of rapeseed oil have been offered, virtually all of which has been bought by traders. After peaking at CNY 7 172 per tonne (USD 1 034) in mid-December, average auction prices decreased gradually to CNY 6 549 per tonne (USD 944). "]
[2017,"January","CHINA – GMO policy:  From May 1, the cultivation, processing and selling of GM soybeans, rice and maize will be prohibited in Heilongjiang, the country’s main grain producing province.  Reportedly, the supply of GM seeds and the sale and import of all edible farm produce containing GM ingredients will also be banned. GM-food may only be sold in a special zone, with clear labeling. Consumer concerns over perceived health risks of GM products together with reports of illegal use of GM crops among farmers and food manufacturers (see MPPU Sep.&Oct.’15) are said to have prompted the ban. The provincial initiative appears to be in contrast to recent moves by China’s central government. As part of new efforts to make the country’s agricultural production more efficient and boost crop output, China pledged to support the gradual introduction of GM crops and announced improvements in its GMO regulatory mechanisms to address risks and safety concerns (see MPPU May’15 & Sep.’16). Although provincial officials reiterated their support for the research and development of transgenic technology, they recommended prudence in applying such techniques in crop production. Currently, in China, the cultivation of any GM crops except for cotton and papaya remains prohibited, while the importation of GM soybeans for use in animal feed is allowed. According to market experts, Heilongjiang’s initiative is primarily aimed at protecting the province’s position as a supplier of non-GM soybeans to the domestic and international market. "]
[2017,"January","EUROPEAN UNION – GMO policy  –  New GM soy variety:  The European Food Safety Agency (EFSA) has issued a scientific opinion on the placing on the market of insect-resistant soybean variety DAS-81419-2 (known under the brand name ‘Conkesta’) for food/feed uses, import and processing, concluding that it is as safe and as nutritious as its conventional non-GM counterpart. The EFSA opinion has been forwarded for consideration by the European Commission and member states."]
[2017,"January","EUROPEAN UNION – GMO policy – Traces of obsolete GM rapeseed:  Member states and the European Commission agreed to extend by three years the phasing-out period for traces of three obsolete GM rapeseed varieties. The previously authorized varieties were primarily cultivated in Canada, but are currently no longer commercialized as such."]
[2017,"January","EUROPEAN UNION – biodiesel anti-dumping duties:  In response to the ruling issued last year by the Dispute Settlement Body of the World Trade Organization (see MPPU Nov.’16), the European Commission has initiated an investigation of its anti-dumping duties on biodiesel imported from Argentina and Indonesia. Interested parties – including exporting producers in the two countries – have been invited to submit new evidence on biodiesel production costs, production capacities and capacity utilization. Aimed at bringing the EU’s anti-dumping duties into conformity with WTO rules, the review may lead to a repeal or amendment of the measures in place. Any changes will not have retroactive effect, implying that they shall not serve as a basis for the reimbursement of duties collected in the past. The Commission notified the WTO that it plans to implement its revisions by August 10 of this year."]
[2017,"January","INDIA – agricultural policy – National support prices:  Minimum support prices for Rabi crops (which have been sown in November/December 2016 for harvest during the first half of 2017) have been raised from last season’s level. For oilcrops, they were set about 10 percent higher, at INR 3 700 per quintal (USD 544 per tonne) for both rape/mustardseed and safflowerseed – including a bonus that is granted to oilseed crops to incentivize their cultivation and thus curb the country’s reliance on imports. For comparison, the support prices for pulses, wheat and barley have been increased by, respectively, 14–16 percent, 7 percent and 8 percent."]
[2017,"January","INDIA – agricultural policy – Local producer support:  The state government of Andhra Pradesh informed that it would cover insurance claims by farmers whose groundnut crop has been damaged by adverse weather during the 2016 Kharif season. Nearly 700 thousand farmers are expected to benefit from the measure. Reportedly, in Andhra Pradesh, less than one third of the area planted with groundnut could be harvested due to lack of rainfall."]
[2017,"January","MALAYSIA / ISLAMIC REP. OF IRAN – trade agreement:  Malaysia plans to pursue a free trade agreement with the Islamic Republic of Iran as part of efforts to diversify bilateral trade. Following the lifting of international sanctions against Iran and given the country’s thriving economy, Malaysia sees significant potential for trade between the two countries, especially regarding mineral oil, gas and palm oil. Considering that imports of palm oil into Iran currently attract a high tariff of 40 percent, Malaysia is aiming for a preferential, lower duty under a bilateral trade agreement."]
[2017,"January","UKRAINE – export control measures:  Ukraine’s Food Safety and Consumer Protection Service (FSCPS) decided to check the country’s agricultural exports for GMO-content, mentioning soybeans as a particular concern. In principle, given that no GM soybean variety has been cleared for cultivation in the country, Ukraine has the potential to become a key supplier of GM-free soybeans to the EU and the Russian Federation. However, according to private sources, a substantial part of the country’s soy crop is now grown from illegally imported GM varieties, and local supply chains are not equipped for segregating non-GM from GM produce. FSCPS informed that it would seize and dispose of any export consignment found to contain GMO products, in a bid to protect the interests of domestic non-GM soybean producers."]
[2017,"January","Variable palm oil export tax – Indonesia, Malaysia:  In January, Indonesia will re-introduce a USD 3 per tonne export tax on crude palm oil shipments, given that the government’s benchmark price for palm oil has exceeded the USD 750 per tonne threshold that triggers the sliding export tax. The country’s tax had been set at zero in the two preceding months. Malaysia raised its export duty for January to 7 percent (compared to 6 percent in December), in line with the increase recorded in the relevant reference price. The 7 percent duty represents the highest rate since the tax systems’ revision in January 2013. Under Malaysia’s multi-tier tax regime the duty may range from zero to 8.5 percent.  "]
[2017,"January","Bilateral initiatives concerning palm oil – Ghana / Liberia:  The governments of Liberia and Ghana, with support from their private sectors, agreed to explore potential trade opportunities in palm oil. National trade and standard setting bodies and private investors in the two countries committed to join forces to promote Liberian exports of crude palm oil for subsequent refinement in Ghana."]
[2017,"January","Bilateral initiatives concerning palm oil – Malaysia / Indonesia:  The world’s two leading palm oil exporting nations agreed to organize joint ministerial missions to western, importing countries to address perceived barriers to palm oil trade. According to Malaysian and Indonesian government officials, anti-palm oil campaigns are hurting global exports and have negatively affected growth of their domestic palm oil industries. The bilateral effort will be carried out under the Council of Palm Oil Producing Countries that was established in 2015 (see MPPU Nov.’15)."]
[2017,"January","Sector development measures – India – Oil palm:  District officials in Arunachal Pradesh encouraged farmers to take up palm oil cultivation and announced the following public-private support measures:  subsidies to cover plantation and maintenance costs; incentives for purchasing pumping equipment; assistance for intercropping; and the establishment of local centres for the collection of oil palm fruit brunches."]
[2017,"January","Sector development measures – India – Coconut palm:  Under plans to revive Kerala’s coconut industry, the local government intends to launch a campaign to highlight the health benefits of coconut oil. Reportedly, due to misconceptions, consumers are increasingly switching to other oils such as sunflower and palm oil. To diversify the local market for coconut products, the government will also support the production of value-added products such as neera, a sweet sap extracted from the inflorescence of the coconut palm that is used to prepare health drinks and other food products. Furthermore, the state announced a large replanting programme to replace aged and ailing palms with disease-resistant, high-yielding dwarf varieties. Moreover, fragmented landholdings with coconut palms will be grouped into clusters to allow more efficient crop management.  "]
[2017,"January","Research and development  – Trans fat-free hydrogenation:  A group of scientists in the United States claims to have developed a novel technique to hydrogenate vegetable oils which does not produce unhealthy trans fatty acids. Conventional hydrogenation processes (which are essential for the stabilization of vegetable oils) go hand in hand with the generation of trans fats. Reportedly, the new technique, named High-voltage Atmospheric Cold Plasma (HVACP) hydrogenation, relies on a high-voltage electrical current to split hydrogen molecules. Currently, the team of researchers is investigating methods to reduce hydrogenation time from several hours to a couple of minutes."]
[2017,"January","Research and development – Enhanced soybean meal:  In the United States, the soybean industry is supporting the development of an improved soybean meal for use in the aquaculture sector. Researchers are focusing on an enzyme treatment, which – without damaging the amino acids – reduces the amount of anti-nutritional factors that impair fish digestion. Initial feeding studies suggest that high inclusion levels of the modified meal in fish diets is possible without decreasing performance. The new meal is said to remain similar to conventional produce with regard to its physical properties."]
[2017,"January","Research and development – Olive oil quality:  In Spain, scientists are working on a method to gauge olive oil authenticity and quality based on advanced forensic techniques. By clearly identifying and quantifying the DNA present in virgin olive oil, the new technique (known as ‘droplet digital-PCR’) permits researchers and food analysts to reliably certify the origin and composition of any olive oil, thereby helping to detecting adulterations. Considering that, in global olive oil trade, fraudulent practices greatly impact growers, producers and traders, the development of reliable fraud-prevention techniques has become of particular relevance (see also MPPU May’14 & Dec.’16)."]
[2017,"January","Research and development – Olive seed oil:  A Spanish olive company is working on techniques to optimize oil extraction from the seed that is found inside olive stones (as opposed to the oil contained in the pulp or in the stone-husk). The chemical composition of olive seeds, pulp, and stone-husk differs significantly, with oil extracted from stones and, in particular, from seeds featuring high amounts of polyphenols and antioxidants. The latter compounds make olive seed oil suitable for high-value products and applications in the cosmetics, pharmacological and functional foods sector."]
[2017,"January","Overseas investments – China / Kazakhstan:  In Kazakhstan, a Chinese company opened an oilseed processing facility in partnership with a local firm. The joint venture was set up to supply vegetable oil to China and therefore complements earlier efforts by China – given domestic production constraints – to raise the country’s presence in international markets and foster direct product sourcing (see also MPPU Nov.’14 & Feb.’16). Kazakhstan, on the other hand, welcomed Chinese investments into the country’s food industry as a means to diversify its mineral oil-dependent economy."]
[2017,"January","Overseas investments  –  Malaysia / Philippines:  Under PIOPIC – a bilateral public-private partnership for the development of the Philippine oil palm industry – a group of Malaysian companies is set to develop 120 000 hectares of oil plantation in the Philippines’ Mindanao region. Reportedly, the investment will include the training of farmers, the construction of mills including biogas plants, and basic infrastructure works."]
[2017,"January","Futures markets – China:  China’s securities regulator has approved the launch by the Dalian Commodity Exchange of soybean meal options. Currently, the exchange is seeking public comments on contract specifications and related issues. Reportedly, following the successful launch of futures contracts for oilseeds, oils and meals in 2015, industry players called for the introduction of options contracts as an additional risk management tool. Agricultural options are extensively used by farmers and investors in the United States and Europe."]
[2017,"January","Certified sustainable palm oil:  The Roundtable on Sustainable Palm Oil (RSPO), the world’s principal body for sustainable palm oil certification, published the following performance indicators referring to December 2016 (see MPPU Feb.’16 for information concerning 2015):  a) 3.25 million hectares of oil palm are certified sustainable (including group certification for smallholders), which represents about 18 percent of the world’s total mature oil palm area and compares to a certified area of 2.77 million ha in December 2015;  b) the annual production capacity of RSPO-certified palm oil amounts to 12.15 million tonnes, or about 20.8 percent of global production; these figures are somewhat below the  2015 levels, in part because of one RSPO membership suspension and one member’s self-withdrawal from RSPO certification (see MPPU June’16);  c) actual sales of RSPO-certified palm oil continue to fall short of total supplies; the figures reported for 2016 confirm that over half of the available certified product does not find a buyer and is sold as conventional palm oil, i.e. without price premium;  d) in 2016, the three sales channels that are based on physical supply chains – i.e. segregated, identity-preserved and supply-mass-balanced transactions – accounted for 65 percent of total sales; the remaining 35 percent were marketed via book&claim mechanisms (which contribute only indirectly to sustainable production systems) – an improvement compared to 2015, when book&claim sales accounted for about 55 percent of total transactions."]
[2017,"February","ARGENTINA – seed policy:  In 2017, Argentina’s national seed agency (INASE) will continue testing farmers’ crops for the presence of GM traits, private sources reported. Last year, the government entrusted INASE with this task to facilitate the collection of royalties by seed producers (see MPPU July’16).Reportedly, policy makers and seed companies are working on a permanent seed bill, in replacement of the current temporary arrangement.  "]
[2017,"February","BRAZIL – agricultural policy:  The Government presented its pre-crop financing scheme for the 2017/18 crop year. The programme will allow medium-sized producers to purchase agricultural inputs (seeds, fertilizers and pesticides) for the 2017/18 season at a preferential interest rate of 8.5 percent. This year’s credit line will total BRL 12 billion (USD 3.83 billion) – up 20 percent from last year’s level. The maximum amount each farmer can borrow has been set at BRL 780 000 (USD 250 000)."]
[2017,"February","CHINA – import policy:  The Chinese Government raised the anti-dumping and anti-subsidy duties imposed on the importation of distillers dried grains (DDGs) from the United States back in September 2016 and extended the retaliatory measure until January 2022 – a decision expected to increase feedmillers’ demand for domestically produced DDGs, maize and soymeal."]
[2017,"February","CHINA – GMO policy:  China has granted import approval for Balance GT, a new soybean variety characterized by tolerance to both glyphosate and isoxaflutole-based herbicides. China’s approval follows the import authorizations provided by Canada, the European Union and the United States (see also MPPU Aug.’16).However, Balance GT will not be commercially available until Balance Bean, the herbicide specifically developed for use on the new soybean variety, has received the required regulatory approval by the United States Environmental Protection Agency."]
[2017,"February","ECUADOR – import policy:  Ecuador decided to extend its current tariff and duty exemptions for soybean meal imports from all origins until 31 December 2019. According to market experts, the exemption will keep imports from the United States – Ecuador’s principal supplier – competitive compared to those from Bolivia (one of Ecuador’s Andean Community partners) and other MERCOSUR countries. Without the exemption, soymeal imports would attract a 15 percent ad valorem tax plus the Andean Price Band’s variable levy, currently set at 21 percent."]
[2017,"February","EUROPEAN UNION / INDONESIA – trade dispute:  In December 2016, a panel established by the WTO dispute settlement body (DSB) issued a report on the anti-dumping measures taken by the European Union against imports of certain fatty alcohols (derived from palm oil) from Indonesia (see also MPPU May’14). The Panel, which was set up at the request of Indonesia, found that the EU’s export price comparisons were not inconsistent with existing WTO regulations, but ruled that the EU failed to disclose the results of its on-the-spot verifications of Indonesian producers. The panel recommended that the EU bring its measures into conformity with its obligations under the WTO anti-dumping Agreement.  "]
[2017,"February","INDIA – health policies:  The Government of India set 27 February 2017 as the enforcement date for both, the mandatory declaration of trans fat and saturated fat content on food product labels and the 5 percent limit for trans fatty acid content (by weight) in fats, oils and fat emulsions (see also MPPU Sep.’15 & Sep.’16)."]
[2017,"February","INDIA – special farm support measures:  Seeking to minimize the impact of last November’s demonetization measure on the farm sector (see also MPPU Dec.’16), the Government has given its ex-post facto approval for a two-month interest waiver for farmers who took up short-term crop loans from cooperative banks. Reportedly, many farmers faced difficulties in carrying out Rabi crop operations due to the lower availability of cash that followed demonetization."]
[2017,"February","INDIA – copra procurement:  Last December, India’s National Agricultural Cooperative Marketing Federation (NAFED) started procurement of copra in Karnataka state in a bid to protect growers from falling prices of the commodity. In the 2016/17 (July-June) crop year, Karnataka has become the third state after Andhra Pradesh and Tamil Nadu where copra is being bought at the federal support price of INR 59 500 per tonne (USD 890) for milling quality copra and INR 62 400 per tonne (USD 933) for ball copra."]
[2017,"February","KAZAKHSTAN – agricultural policy:  The Government presented a programme for the development of the country’s agro-industrial complex in 2017-2021. In addition to improved access to subsidies for small/medium-sized farmers, an expanded farm insurance scheme and higher irrigated land area, the plan envisages incentives to reduce wheat cultivation in favour of coarse grains and oilseeds. Starting next year, per hectare subsidies for wheat producers could be cut strongly, while those for maize would fall less and those for soybeans, rapeseed and other oilseeds would be raised.        "]
[2017,"February","MEXICO – GMO policy:  The Government of Mexico invited public comments on a plan to introduce new assessment criteria governing the experimental release of GMOs, such as maize, soybeans and other GM crops or animals.  "]
[2017,"February","TURKEY – agricultural policy:  In a bid to diversify the country’s agricultural production, raise productivity levels and reduce the cultivation of water-intensive crops in structurally disadvantaged areas, the Government of Turkey has launched a new agricultural subsidy programme. Under the new scheme, 19 strategic crops – including soybean, sunflower, safflower and rapeseed – will be eligible for public support, starting this year. Subsidies will be allocated based on climate and soil conditions prevailing in each zone, and will be disbursed in two annual instalments. Markets observers expect farmers’ planting decisions to be affected by the new system; in particular, in some areas, farmers could replace maize with cotton, oilseeds, pulses and wheat. "]
[2017,"February","UNITED STATES – GMO policy:  USDA’s Animal Plant Health Inspection Service (APHIS) proposed to revise its regulations regarding the importation, interstate movement and environmental release of GMOs. The proposed revisions are meant to (i) reflect advances in genetic engineering as well as past implementation experience, and (ii) reduce the burden on regulated entities. In the United States, APHIS is responsible for reviewing GM crops to determine whether they pose risks to domestic agriculture. The proposed new rule will remain open for comment until 19 May 2017."]
[2017,"February","UNITED STATES – biofuel support:  Renewing national efforts to promote research on bio-based fuels, the United States Department of Energy has allocated funds to a research project on camelina sativa, an edible oilcrop adapted to northern climates and suitable for cultivation as a rotation crop in dry areas and on thin soils. Reportedly, research efforts will concentrate on ways to raise productivity in camelina cultivation and to improve camelina oil quality, using a combination of traditional breeding methods and molecular genetics. Chiefly, camelina will be studied for its potential as biofuel feedstock. In recent years, numerous tests have been conducted in the United States and elsewhere with camelina-based transport and aviation fuels, and camelina oil has gained approval as biofuel feedstock by the country’s Environmental Protection Agency (see MPPU Apr.’13, Feb./June’16)."]
[2017,"February","Intergovernmental commodity agreement:  On January 1, the International Olive Council’s (IOC) new international agreement on olive oil and table olives took effect. It is the sixth such agreement since the organization was set up in 1959. Compared to the previous versions, the new agreement aims to boost the involvement of importing countries in IOC’s work by making participation shares more appealing. Bringing together olive oil and table olive producing and consuming stakeholders, IOC’s mission is to contribute to the sustainable and responsible development of olive growing and to serve as a world forum for discussing policy issues and tackling the industry’s challenges.","  "]
[2017,"February","Variable palm oil export tax – Indonesia, Malaysia:  In February, Indonesia will raise its export tax on crude palm oil shipments to USD 18 per tonne (compared to USD 3 in January) –  the highest rate since the country changed the duty from a percentage rate to a dollar system in 2015 (see MPPU Aug.’15). The six-fold increase has been triggered by the hike in the government’s benchmark price for palm oil to USD 816 per tonne. The tax rise could affect the competitiveness of Indonesia’s exports and encourage producers to raise sales to domestic buyers, especially the biodiesel industry, industry sources said. Malaysia raised its palm oil export duty for February to 7.5 percent – the fourth consecutive increase since August 2016, also reflecting an increase in the relevant reference price (see MPPU Jan.’17)."]
[2017,"February","Sector Development measures – Burkina Faso – soybeans:  The Government of Burkina Faso joined forces with two associations representing the French vegetable oils/protein sector to develop the country’s soybean sector. To address Burkina Faso’s growing demand for vegetable oil and protein (to be used for human consumption and animal feed), the project aims at lifting annual domestic soybean output from currently 20 000 tonnes to 100 000 tonnes by 2022. Interventions will focus on (i) raising productivity and yields in the field, (ii) strengthening producer organizations, (iii) consolidating the processing sector, (iv) creating a national soybean association, and (v) establishing a sector development fund."]
[2017,"February","Sector Development measures – Indonesia – coconut:  For 2017, the Government of Indonesia has allocated IDR 28 billion (USD 2.1 million) to improve domestic coconut production, according to the local press. Higher domestic output is needed to meet growing demand for raw materials by local industries. Reportedly, Indonesia’s countrywide coconut cultivation programme will include (i) carrying out a complete inventory on coconut; (ii) rejuvenation of coconut stands in key growing regions; (iii) mapping high-yielding mother palms for seedling production; and (iv) strengthening existing and setting up new nurseries."]
[2017,"February","Disease control – European Union – xylella fastidiosa:  The European Commission has launched a multidisciplinary research programme aimed at improving the prevention, early detection and control of xylella fastidiosa, a bacterial disease responsible for the quick wilting and dieback syndrome that destroyed olive trees in southern Italy and has been detected in neighbouring countries (see MPPU Nov./Dec.’16). The four-year project will benefit from the collaboration of 29 research centers located in 14 countries around the world. The principal objective is to prevent the spread of the disease and develop a comprehensive integrated management strategy, so as to mitigate the economic, environmental and social aspects of epidemic conditions worldwide. Proposed actions will be complementary to other on-going efforts. Reportedly, the xylella fastidiosa pathogen originated in Brazil and is widely distributed in the American continent, from where it travelled to the Old World via infected plant material."]
[2017,"February","Disease control – European Union – neonicotinoids:  A research consultancy reviewed, with support from the private sector, the impact of the EU’s decision (see MPPU June’13)to temporarily ban neonicotinoid-based pesticides – a group of pesticides used primarily on rapeseed. According to the consultancy firm, the ban has led to significant yield reductions, crop quality losses and increased insecticide applications in EU rapeseed cultivation. Allegedly, the ban also caused a shift of production outside the EU, triggering the conversion of grassland and other biodiversity-rich natural habitats to arable land. The study concludes that holistic impact assessments – looking at all economic and environmental effects – ought to be conducted before pesticide restrictions are implemented."]
[2017,"February","Trade standards – responsible soy:  Backed by a civil society group that promotes sustainable trade initiatives, four associations representing Brazilian soybean producers and European soy buyers have signed a memorandum of understanding in support of responsible soy production in Brazil and its market acceptance in Europe. Reportedly, the initiative will support the Brazilian Forest Code’s objective of preserving natural habitats by promoting sustainable production practices on soy farms whilst safeguarding community rights in rural areas. All five parties explicitly recognized the complementarity of existing responsible soy initiatives in Europe and Brazil."]
[2017,"February","Trade standards – responsible fishoil/fishmeal:  IFFO,the organization that represents and promotes the fishmeal, fishoil and wider marine ingredients industry worldwide, has launched a two-month public consultation on its revised Responsible Supply standard for fishery and factory assessments. The purpose of the revision is to promote more responsible fishery management and further reduce the environmental and social impact of the fishmeal and fishoil manufacturing process."]
[2017,"February","Trade standards – responsible palm oil – smallholders:  In Côte d'Ivoire, civil society group Solidaridad and RSPO (the world’s leading industry-backed standard setting body for palm oil) will jointly implement a large group certification programme targeting 5 000 smallholders. The three-year project is aimed at making sustainable production of palm oil the norm in the country. Côte d'Ivoire is Africa’s third largest producer of palm oil."]
[2017,"February","Trade standards – responsible palm oil – lending institutions:  Environmental advocacy groups continue pressing international banks to induce oil palm companies to adopt sustainable production practices (see MPPU Apr.’16). A report released by Greenpeace International claims that one of the largest providers of financial services to the palm oil industry provided loans and other financial services to companies that allegedly harmed tropical rainforest, infringed labour laws and disregarded operating licenses. By doing so, the bank is said to have breached its own corporate policy regarding sustainability in forestry and agricultural production, including specific sections on palm oil. The report, which states that also other banks’ lending activities are problematic, urges banks and institutional investors to actively engage with palm oil companies on corporate strategy and behaviour prior to agreeing to provide new (or renew on-going) financial services."]
[2017,"February","Trade standards – responsible palm oil – company news:  Global agri-business trader Cargill reported on the company’s progress and goals regarding deforestation and pledged to protect forests in six priority supply chains, including palm oil and soybean. The company committed to implement specific action plans and offer training programmes to farmers and suppliers – in close collaboration with their customers, governments, NGOs and other stakeholders."]
[2017,"February","Trade standards – responsible palm oil – company news:  An Indonesian industry group agreed to stop clearing forest until sustainability assessments can be made on 75 000 ha of forest under a palm oil concession in Papua Province. Reportedly, the group considers following the ‘High Carbon Stock Approach’ in its assessments, which would imply using independent assessors, publishing the results and seeking independent verification of compliance."]
[2017,"February","Trade standards – responsible palm oil – company news:  Global products and services company DuPont reported that it has completed its switch to 100% RSPO-certified sustainable palm oil and palm oil derivatives in its global emulsifier production – a process the company started in 2009. Reportedly, the transition was delayed by insufficient market demand and a shortage of certain certified palm oil derivatives. Now the company aims to move from sourcing its products through Book&Claim mechanisms to buying through physical supply chains."]
[2017,"February","Trade standards – responsible palm oil – company news:  Global consumer goods company Unilever informed that it will adopt a jurisdictional approach to palm oil sourcing by preferentially buying from areas that have in place comprehensive climate and forest policies. Accordingly, the company has signed a three-year Memorandum of Understanding with the provincial government of Central Kalimantan (Indonesia) other local partners to promote, at village level, sustainable palm oil production by certified smallholders. The new form of palm oil sourcing is said to build on close public-private collaboration."]
[2017,"February","Futures markets – European Union:  The pan-European exchange Euronext temporarily suspended its rapeseed futures and options to review, together with industry players, the contracts’ technical specifications – in particular the oil content basis for rapeseed."]
[2017,"February","Futures markets – India:  After receiving approval from the Securities and Exchange Board of India (SEBI), the National Commodity & Derivatives Exchange (NCDEX) and the Multicommodity Exchange (MCX) informed that they intend to launch a futures contract in castor seed to cater to the need of the castor industry for price discovery and risk management instruments."]
[2017,"April","ALGERIA – tax policy:  Effective 1 January 2017, the value-added tax on selected grain and feed products – including soybean meal (all of which is imported) – has been raised from 7 percent to 9 percent. As the measure directly affects sale prices, the tax increase could slow down Algeria’s pace of soymeal imports."]
[2017,"April","CHINA – public rapeseed oil reserves:  Government 2016/17 auctions of rapeseed oil from state reserves ended in March 2017. From mid-October 2016 to 8 March 2017, a total of 2.08 million tonnes of rapeseed oil have been offered, virtually all of which was bought by traders. During the campaign, average auction prices ranged from CNY 5 904 to CNY 7 172 per tonne (respectively, USD 856 and 1040). "]
[2017,"April","CHINA – agricultural policy:  In a policy statement, the Government of China confirmed earlier plans to gradually modify the country’s crop structure, encouraging farmers to expand soybean production as well as maize production for silage, while reducing maize production for grain (see MPPU June & Nov.’16). As to the nation-wide target price for soybeans and Heilongjiang’s soybean production subsidy, no adjustments have been announced in preparation of the forthcoming 2017/18 plantings."]
[2017,"April","EUROPEAN UNION – food safety policies:  Following the adoption by the European Parliament on 15 March 2017, new, more stringent regulations on food safety and inspection are set to come into force in April, requiring EU member states to apply the new rules by 2020. The main objective of the new regulations is to tackle fraudulent practices in the food industry across the EU. Sectors expected to benefit from the new rules include the olive oil sector, where several cases of fraud have been uncovered in recent years. Typically, low-quality olive pomace oils were sold and exported as extra virgin olive oil, and olives sourced from another country were processed and sold as indigenous olive oil."]
[2017,"April","INDIA – copra support price:  The Government of India has set the 2017 procurement price for milling and ball copra at, respectively, INR 65 000 (USD 1 004) and Rs 67 850 (USD 1 048) per tonne – i.e. 9 percent above last year’s level. India’s Commission for Agricultural Costs and Prices had recommended the increase in the minimum support price (MSP), based on the analysis of (i) production and processing costs, (ii) trends in domestic and international prices of edible oils, (iii) the overall demand and supply situation for copra and coconut oil, and (iv) the likely impact of MSPs on consumers. The new MSP for copra is aimed at ensuring remunerative prices for farmers and stimulating investment in coconut, thereby raising production and productivity in the country’s coconut industry."]
[2017,"April","INDIA – food standards and safety:  India’s Federal Food Safety and Standards Authority postponed to 30 June 2017 the compliance date for mandatory declaration of trans fat and saturated fat content on food product labels. The compliance date (originally set at 25 May 2016) has been postponed twice before. The measure is meant to allow manufacturers to utilize the existing stock of their packaging materials. Conversely, entry into force of the 5 percent limit for trans fatty acid content (by weight) in fats, oils and fat emulsions remains effective 28 February 2017."]
[2017,"April","INDIA – food standards and safety:  The Food Authority of Punjab State started collecting and testing samples of numerous brands of edible oil/ghee sold in local markets. Reportedly, all sub-standard and adulterated oil products will be banned from the market. (On past instances of vegetable oil adulteration see MPPU July’16.)"]
[2017,"April","INDIA – import policy:  The Government of India announced a temporary cut in the import duty on sunflower seed. From 1 April to 30 September 2017, the ordinary 30 percent duty has been replaced by a 10 percent tariff. The country’s processing industry, which is suffering from a low capacity utilization rate, had been calling for a tariff cut from a long time. The measure is expected to raise India’s sunflowerseed imports and crushing. "]
[2017,"April","INDIA – export policy:  With a view to boost shipments and promote domestic processing of premium vegetable oils, on 27 March, the Government of India lifted a ban on bulk exports of selected edible oils, notably groundnut, sesame and soybean oil. The measures will likely benefit in particular groundnut producers and crushers in Gujarat State, where a record harvest has driven down local prices. India banned bulk exports in 2008, when the share of the country’s consumption met through imports started rising sharply. Since then, the government only allowed the exportation of edible oils in branded consumer packs of up to 5 kg – subject to volume limitations and minimum prices."]
[2017,"April","INDONESIA – agricultural policy:  According to government officials, Indonesia plans to encourage independent palm oil farmers to introduce maize intercropping in their plantations – a measure meant to boost domestic maize production and thus reduce the dependence on imported crops. Under the plan, maize would be introduced in nearly one million hectares of oil palm plantations by the end of 2017. The government would provide seeds and subsidized fertilizer to farmers who join the programme. Planting oil palm and maize side by side is expected to improve land use efficiency, raise productivity and increase farmers’ incomes.    ","              "]
[2017,"April","INDONESIA – palm oil export tax:  In March 2017, Indonesia’s variable tax on palm oil exports remained unchanged at USD 18 per tonne, reflecting an only marginal increase in the government’s palm oil reference price between March and February 2017. For April, the export tax has been lowered to USD 3 per tonne, reflecting a drop in the base price."]
[2017,"April","MALASYIA – palm oil export tax:  Malaysia’s sliding export tax for palm oil has been raised from 7.5 percent to 8 percent in March (mirroring an increase in the government’s benchmark price), whereas, in April, the tax has been brought back to 7.5 percent (following a drop in the reference price)."]
[2017,"April","MALASYIA – palm oil export tax:  According to government officials, Malaysia is considering aligning the country’s variable export duty for palm oil with that of Indonesia. Allegedly, differences in the duty schemes of the two countries resulted in Malaysia losing global market share, particularly regarding trade in refined palm oil. Reportedly, under the present duty structure, Indonesia is able to sell refined palm oil at USD 30–40 per tonne less than Malaysia. Therefore, Malaysia would like to explore the possibility of having a common, mutually beneficial tax regime. The issue could be reviewed at a future meeting of the Council of Palm Oil Producing Countries (CPOPC). "]
[2017,"April","MYANMAR – food standards and safety:  According to local press reports, the Government of Myanmar plans to take action against illegal vegetable oil imports and fraudulent sales of cooking oils in the country. Reportedly, some brands of groundnut and sesame oil sold on the domestic market were found to actually contain a mixture of different unidentified oils plus artificial fragrance."]
[2017,"April","SRI LANKA – import policy:  In Sri Lanka, forecasts of a marked drop in domestic coconut production have driven up the retail prices of coconut oil and other cooking oils. Concerned about the resulting hardship for consumers, the government approved the importation of 40 000 tonnes of coconut oil and decided to lower the special commodity levy charged on imported vegetables oils. For coconut oil, palm kernel oil and refined palm oil the duty has been reduced from LKR 150/kg to LKR 130/kg (respectively 99 and 85 US cents), while for crude coconut and palm oil the duty has been adjusted from LKR 130/kg to LKR 110/kg (85 and 72 US cents)."]
[2017,"April","TURKEY – import policy:  According to industry sources, import licenses issued by the Turkish Government no longer include the Russian Federation in a list of accepted tax-free origins for agricultural products, including wheat, maize and sunflower oil and sunflower meal – a circumstance implying that a prohibitive tariff of 130 percent would be applied to supplies from Russia. While government officials underscored that no supplier had been banned from exporting to Turkey, Turkey’s purchases of the concerned products from Russia have effectively come to a halt."]
[2017,"April","UKRAINE – agricultural policy:  The Government of Ukraine pledged to support further growth in domestic soybean production. Reportedly, areas where soybean production can be expanded will be identified and the adoption of modern production technologies – including in the field of organic production – will be promoted.                "]
[2017,"April","ZAMBIA – import policy:  Reportedly, in February 2017, government officials announced the restriction of imports of refined, packed and bottled edible oils into the country, adding that the measure was meant to protect domestic refiners and strengthen the market for locally produced cooking oils."]
[2017,"April","Bilateral trade talks – Canada / China:  The Canola Council of Canada (the industry association that represents the country’s rapeseed value chain) has backed the on-going exploratory discussions between Canada and China about a possible bilateral trade agreement, saying that it would create jobs and increase Canada’s exports of rapeseed and rapeseed products. According to a study commissioned by the Council, the elimination of China’s import tariffs could raise Canada’s exports of rape seed, oil and meal by CAD 1.2 billion a year (USD 0.9 billion) – which would equate to 1.8 million tonnes of rapeseed or about 10 percent of Canada’s current annual production. Reportedly, China’s tariff on imported rapeseed currently stands at 9 percent, which, in 2016, made imported rapeseed about CAD 32 per tonne (USD 24) more expansive than soybeans (which enjoy an import duty of 3 percent). In addition, resolving specific non-tariff barriers is said to be necessary to take full advantage of China’s demand (see MPPU Nov.’16). Furthermore, three rapeseed varieties authorized in Canada in 2012 are still to gain approval in China, implying that their commercialization remains on hold in Canada – allegedly hampering farmers’ access to the latest seed technology."]
[2017,"April","Bilateral trade talks – Canada / Viet Nam & India:  The Government of Canada reiterated its commitment to strengthen its agricultural ties and deepen mutually beneficial trade with both Viet Nam and India. During a trade mission to the two countries, government and industry officials promoted Canada’s agri-food products, including oilseeds. Furthermore, in India, several Memoranda of Understanding have been signed between Canadian rapeseed oil distributors and Indian retailers."]
[2017,"April","Bilateral trade talks – India / Ghana:  Indian governmental officials reaffirmed their country’s commitment to deepen trade relations with Ghana, mentioning, inter alia, India’s growing demand for oilseeds and vegetable oil from Ghana."]
[2017,"April","Bilateral trade talks – Indonesia / Australia:  While Indonesia and Australia are negotiating a free trade deal to be concluded this year, Indonesian officials invited Australia to remove tariffs and non-tariff measures for Indonesian products such as palm oil, paper pulp and other wood products. Regarding palm oil, Australian officials informed that no trade barriers were in place. "]
[2017,"April","Bilateral trade talks – Kazakhstan / China:  Government officials from Kazakhstan and China signed a protocol on phytosanitary requirements for increasing the exportation of Kazakh soybeans to China (see also MPPU Jan.&Feb.’17). Reportedly, all soybean imports from Kazakhstan will be crushed in China."]
[2017,"April","Bilateral trade talks – Kenya / Zambia:  During bilateral talks between the two countries, Kenyan government officials stated that Kenyan milk and palm oil products could not access the Zambian market due to diverging standards. They called for the development of common COMESA standards to enable trade between members of COMESA (Common Market for Eastern and Southern Africa)."]
[2017,"April","Bilateral trade talks – Russian Federation / China:  Based on the terms of a long-term contract between the Russian Federation and China, shipments of Russian agricultural products to China are set to increase, local news agencies informed. Reportedly, in 2018, the Russian Federation is planning to export 1.5 million tonnes of agricultural products – including soybeans, barley, flax seed and sunflower oil – to China."]
[2017,"April","Bilateral trade talks – Ukraine / Iran (Islamic Republic of):  According to Ukrainian government officials, Ukraine plans to significantly increase its trade in food and agricultural products with Iran. Reportedly, the two sides agreed that the trade potential between the countries is not fully tapped. Products for which Ukraine intends to expand its shipments to Iran include oilseeds and vegetable oils."]
[2017,"April","Bilateral trade talks – Viet Nam / India:  In March 2017, citing phytosanitary concerns, the Government of Viet Nam temporarily banned the importation of groundnuts and other agricultural products from India. Subsequently, India suspended imports of a number of agricultural products from Viet Nam, also on phytosanitary grounds. Eventually, both countries lifted their temporary bans, reporting that the phytosanitary issues had been resolved. "]
[2017,"April","Sector development measures – Argentina, grains & oilseeds:  According to private industry estimates, Argentina’s grains and oilseeds transportation sector will receive ARS 27 billion (USD 1.76 billion) in private investments for the 2016–17 period. Aimed at making the country’s transports logistics and processing operations more efficient, the investments will concern port facilities, road and rail networks, truck terminals, warehouses and processing plants."]
[2017,"April","Sector development measures – India, coconut palm:  The Indian Coconut Development Board agreed to support 38 projects worth INR 600 million (USD 9.3 million). Out of the total, 32 projects will focus on coconut processing and product diversification, three on market promotion, and three on research. The Board’s financial contribution will amount to INR 91 million (USD 1.4 million). The projects will be located in the states of Kerala, Karnataka, Tamil Nadu and Andhra Pradesh."]
[2017,"April","Sector development measures – Kenya, coconut:  Kenya’s Nuts and Oilcrops Directorate announced that it will distribute 2.1 million quality coconut seedlings to farmers in the country’s coastal region to boost production and strengthen the coconut value chain (see also MPPU Mar.’15). To raise productivity, farmers will be encouraged to replace senile and non-productive trees. Reportedly, the main problems affecting Kenya’s coconut sector are: lack of adequate research; poor agronomical practices; lack of appropriate and affordable technology; exploitation by middlemen; and lack of access to credit facilities by the smallholder farmers. "]
[2017,"April","Sector development measures – Pakistan, rapeseed:  A state-funded project for enhancing oilseed productivity has been launched in Pakistan’s Khyber Pakhtunkhwa Province. The project, which was designed to provide high-quality certified rapeseed to farmers, will include the multiplication, procurement and marketing of a high-yielding rapeseed variety. The project will be implemented in collaboration with the private seed business and local extraction industry."]
[2017,"April","Sector development measures – Sri Lanka, coconut palm:  In Sri Lanka, the Ministry of Primary Industries and the Ministry of Plantations are planning to jointly launch a programme to increase domestic coconut cultivation. A key objective of the initiative will be to cater for growing international demand for high value-added coconut products."]
[2017,"April","Sector development measures – Thailand, coconut palm:  Thai coconut production is reported to have declined steadily over the past five years because of drought and destructive pests. To address the resulting supply shortages and halt imports of coconut products, the government has instructed state agencies to develop action plans for boosting domestic production. The plans should focus on expanding the country’s plantation area and promoting suitable high-yielding coconut varieties."]
[2017,"April","Sector development measures –  Vanuatu & Samoa, coconut palm:  The Pacific Community (SPC) and the European Union plan to support the coconut industry in Samoa and Vanuatu as part of a new regional initiative to improve the business competitiveness of small producers. The EUR 3.5 million (USD 3.7 million) Coconut Industry Development Project (CIDP) is expected to improve the livelihood of smallholder farmers in the two countries by supporting innovation in coconut production and strengthening regional market integration. In the Pacific region, the coconut sector supports rural population livelihoods, plays a central role in the diets of people, and contributes to export earnings. New interest in coconut products such as virgin coconut oil, coconut water, coconut sap and timber is said to offer opportunities for the industry’s growth."]
[2017,"April","World Trade Organization (WTO) – trade facilitation:  WTO announced the entry into force of the Trade Facilitation Agreement. The multilateral agreement is aimed at expediting the movement, release and clearance of goods by simplifying import and export procedures, customs formalities and transit requirements. Full implementation of the agreement is expected to trim trade costs and help diversify trade, with developing countries having the most gain. The agreement includes a special facility meant to ensure that developing countries receive the assistance needed to reap the full benefits of the trade pact. By end-February, 114 countries notified acceptance of the agreement.  "]
[2017,"April","Biofuel policies – Indonesia:  According to industry sources, the Government of Indonesia is considering to reduce the amount of subsidy per kiloliter it pays to petrol companies for blending biodiesel so as to spread the total subsidy amount across a larger volume. The move would allow raising domestic biodiesel production – and hence the uptake of local palm oil, the principal biodiesel feedstock – without increasing budgetary outlays. Allegedly, the recent fall in palm oil prices would leave room to use part of the subsidy to raise volumes. Private sources pointed out that the B20 blending mandate (which requires diesel to contain 20 percent biofuel) introduced last year –  which only applies to (subsidized) transportation diesel – might be extended to non-subsidized diesel fuel in 2017, possibly boosting domestic biodiesel demand by about 70 percent."]
[2017,"April","Biofuel policies – Nigeria:  Nigeria’s Federal Government informed that it is working on a ‘Biofuel Policy and Incentives’ document, which spells out production and price targets and defines a regulatory framework for domestic biofuels utilization. The policy’s objective would be to reduce the country’s dependence on fossil fuel and imported petroleum products, while promoting cleaner forms of energy. Support measures would comprise duty and tax breaks as well as the establishment of a Biofuels Equity Investment Fund (backed by parastatals and development banks) to stimulate investment in biofuel production, including cultivation of biofuel-crops. For biodiesel, the specification endorsed by stakeholders is B20, i.e. a blend of diesel and 20 percent biofuel produced from jatropha oil, used palm oil and other non-edible oils."]
[2017,"April","Biofuel policies – Rwanda:  Rwanda’s Research and Development Agency (NIRDA) informed that the government decided to abandon a USD 35 million biodiesel project launched four years ago. Reportedly, the government realized that the pilot project was not viable due to insufficient availability of feedstock and high costs of production. The project feasibility study had identified non-edible jatropha oil as key feedstock, but eventually the plant was discovered to be unsuitable for the country’s climate. Concerns over using scarce arable land for uses other than food production were also cited."]
[2017,"April","Biofuel policies – United States / Argentina & Indonesia, trade dispute:  Claiming that Argentina and Indonesia are dumping biodiesel onto the US market, the US biodiesel industry filed an anti-dumping and countervailing duty petition with the US Government. According to the petition, Argentine and Indonesian producers are selling biodiesel into the US market at prices substantially below their costs of production. The petition also alleges that Argentine and Indonesian producers enjoy trade and market distorting subsidies. US biodiesel imports from the two countries are said to have surged in recent years, taking market share from US manufacturers. Reportedly, the Indonesian Government has submitted a complaint to the WTO over the US industry’s petition, while Argentine state officials have rejected the US claims as unfounded."]
[2017,"April","Certified sustainable palm oil – government policies, Malaysia & Indonesia national certification schemes:  Malaysia and Indonesia renewed their efforts to launch binding national certification schemes for sustainably produced palm oil – as opposed to the widely used voluntary certification through RSPO, the global, internationally recognized and industry-backed standard setting body for palm oil. In recent years, the governments of Malaysia and Indonesia have become increasingly concerned that RSPO could place local stakeholders in a disadvantaged position, by (i) imposing overly stringent requirements, (ii) applying high certification costs, and (iii) paying insufficient attention to the needs of smallholder oil palm growers. Consequently, in 2014, Malaysia started developing a state-backed, voluntary standard known as MSPO or Malaysian Sustainable Palm Oil (see also MPPU May/July/Dec./Nov.’14 & Aug.’15). In February 2017, government officials announced a timeline for the standard’s mandatory application:  compliance will be implemented in stages, with RSPO-certified estates, non-certified estates, and smallholder growers required to obtain MSPO certification by, respectively, 31 December 2018, 30 June 2019 and 31 December 2019. The measures is aimed at making MSPO a globally recognized standard. Indonesia also issued its own sustainability standard for palm oil, called Indonesian Sustainable Palm Oil (ISPO). However, international acceptance of Indonesia’s national standard remained low – despite efforts to streamline ISPO with RSPO (see also MPPU June&Aug.’11, May’12, Apr.&Dec.’13, May’14, and Mar.’16). To address this issue, in February 2017, Indonesia has taken steps to gain the EU’s recognition for palm oil produced in compliance with national laws and regulations. Reportedly, Indonesia is working on a scheme similar to its domestic timber legality assurance system, which conforms fully to the EU code on Forest Law Enforcement Governance and Trade (FLEGT). Indonesia and the EU are working on this initiative under the recently established Working Group on Environment and Climate Change."]
[2017,"April","Certified sustainable palm oil – government policies, United Kingdom uptake of certified palm oil:  According to recently published government data, in the United Kingdom, annual uptake of RSPO-certified sustainable palm oil almost tripled between 2009 and 2015 (see also MPPU Dec.’15). Out of the 457 thousand tonnes sourced through RSPO-backed supply chain models in 2015, about 326 thousand tonnes were segregated and mass-balanced palm oil, whilst Book&Claim certificates accounted for 131 thousand tonnes. While purchases by food manufacturers and retailers consisted almost entirely of certified palm oil, in the food service sector, certified palm oil accounted for only 67 percent of total purchases. Civil society groups urged policy makers to stick to the target of sourcing 100 percent certified palm oil. In addition, they recommended to broaden that policy to include palm oil derivatives and palm oil in imported finished products. "]
[2017,"April","Palm oil sourcing and lending strategies – private sector, Cargill:  In Malaysia, global agri-business firm Cargill joined forces with a social society group to support the inclusion of independent oil palm smallholders in certification. Under the project, independent growers, dealers, mills and refiners are provided with technical assistance to help them adopt responsible and efficient practices, increase their yields, and obtain certification. Reportedly, in total, 175 smallholder growers have received RSPO certification. The initiative’s long-term objective is to develop a critical mass of smallholders and create a self-sustaining group scheme able to provide an uninterrupted flow of RSPO certified sustainable palm oil."]
[2017,"April","Palm oil sourcing and lending strategies – private sector, Kraft Heinz:  Global food company Kraft Heinz committed to achieving a sustainable and traceable palm oil supply chain. The food manufacturer pledged to source only RSPO-certified palm oil and to regularly report on progress. Civil society groups pointed out that the company’s policy lacked a timeline for implementation. The general question whether RSPO’s current basic principles are sufficiently stringent to prevent unsustainable practices completely was also raised."]
[2017,"April","Palm oil sourcing and lending strategies – private sector – HSBC:  Global lending institution HSBC decided to review its loan policies for the palm oil sector and met with Greenpeace to discuss its request to adopt stricter standards to protect high-carbon-stock (HCS) forests and peatland (see also MPPU Feb.’17). The bank said it is open to tighten its policies as society’s expectations change and new standards emerge. Itself a member of RSPO, the bank said it supports the full incorporation of the HCS Convergence Agreement into RSPO’s standards. Meanwhile, HSBC has expanded its ‘prohibited business commitment’, making it consistent with the ‘No deforestation, No Peat and No Exploitation’ policies that are increasingly common in the palm oil supply chain. HSBC also pledged to close its relationship with companies that do not comply with its policies. The bank underlined that growers, processors, consumer good companies and banks need to work together more successfully to promote a sustainable palm oil sector. Greenpeace considered HSBC’s initiative as an important first step, which sends a clear signal to other banks to follow suit.   "]
[2017,"April","Research & Development – Rapeseed, disease resistance:  Reportedly, Australian scientists found new rapeseed genes for resistance to 'blackleg', a major pest threat to rapeseed cultivation in Australia and elsewhere. The mapping of genes for resistance via molecular markers is said to help develop varieties with lasting resistance to the disease. The research project benefitted from public funding.    "]
[2017,"April","Research & Development – Rapeseed, varietal research:  In the United States, USDA’s National Institute of Food and Agriculture (NIFA) announced the availability of up to USD 0.77 million for fundamental and applied research to help develop new rapeseed varieties, expand the crop’s growing region, and launch new commercial rapeseed-based products. Applications must include both research and extension services."]
[2017,"April","Research & Development – Soybean oil-based graphene:  In Australia, researchers developed a technology to produce graphene from soybean oil. Graphene consists of single layer carbon films with promising applications in the semiconductor, electronics, battery energy, and composites industries. Reportedly, the high cost of conventional graphene production represented the principle hurdle in the product’s commercialization until now. By contrast, the new technology is said to be less complex, inexpensive and based on renewable feedstock. Allegedly, the new method allows to produce graphene from any type of used cooking oil. The research was conducted with public funding. "]
[2017,"April","Futures markets – China:  Following approval by China’s securities regulator, the Dalian Commodity Exchange (DCE) has launched a soymeal options contracts on 31 March 2017 (see also MPPU Jan.’17). Option contracts grant the right but not the obligations to buy a financial contract in the future. DCE’s initiative is meant to help the process of price discovery and to provide agricultural companies with more flexible risk management tools.        "]
[2017,"April","Waste oil recycling:  ABIOVE, the association of Brazilian vegetable oil industries, reported that its members are managing nearly 1 300 collection points for used cooking oils across the state of São Paolo. Launched by ABIOVE in December 2015, the programme is implemented in collaboration with a number of state agencies. Under the scheme, used edible oils are collected and subsequently channeled for recycling to the oleochemical and biodiesel industry. In 2016, a total of 1 162 million liters of waste oil have been collected.   "]
[2017,"April","Pesticide regulations – glyphosate:  The European Chemical Agency (ECHA) reckons that there are no grounds to classify glyphosate (a herbicides used extensively on oilcrops and grains worldwide) as a carcinogen, as a mutagen or as toxic for reproduction. The agency informed that its assessment was based on available scientific evidence and preceded by close consultations with all relevant stakeholders. ECHA’s opinion had been requested by the European Commission when it renewed the EU license for glyphosate last year (see MPPU July’16). The Commission is expected to take into account the agency’s opinion when it decides – later this year – whether to renew the license further. ECHA’s findings tally with an earlier opinion published by the European Food Safety Authority, but contradict a report issued by the WHO’s International Agency for Research on Cancer (see MPPU Apr.&Dec.’15). Furthermore, in May 2016, a joint FAO/WHO meeting on pesticide residues concluded that glyphosate is unlikely to pose a carcinogenic risk to humans from exposure through the diet. A number of civil society groups questioned ECHA’s assessment. According to Greenpeace, ECHA has not taken into account scientific evidence of cancer in laboratory animals, overlooked the views of independent scientists, and relied on unpublished industry studies. Concerns were also raised about possible conflicts of interest at ECHA.   "]
[2017,"June","ARGENTINA – agricultural policy:  Argentina’s Ministry of Agriculture determined that the subsidy provided to soybean farmers in the country’s disadvantages northern regions will amount to ARS 290 per tonne (USD 18). Farmers producing up to 2 000 tonnes will be entitled to have their entire production subsidized, whereas caps will be applied to larger producers. For the 2016/17 campaign, the Government budgeted total outlays under the programme at ARS 1000 million (USD 62.9 million). As part of efforts to revitalize the economy of the country’s northern regions, the Government also awarded new contracts to lay railway tracks in the provinces of Jujuy and Salta. Argentina’s northern provinces are viewed as one of the few areas with potential for grain and oilseed production to expand, especially assuming improved transport infrastructure. Currently, the region accounts for about 10 percent of national soybean output."]
[2017,"June","AUSTRALIA / EUROPEAN UNION – free trade agreement:  Australia and the European Union successfully concluded a joint scoping exercise on a future free trade agreement between the two economies. Australian growers’ associations welcomed the news as the EU provides an important market for Australian oilseeds, notably rapeseed. Currently, about 60 percent of Australia’s rapeseed shipments are directed to the EU. It is important to note that, in the EU, Australia’s rapeseeds enjoy a premium of up to AUD 50 per tonne (USD 38) due to the country’s capacity to deliver non-GM rapeseed."]
[2017,"June","BOLIVIA – export policy:  The Bolivian Government raised the country’s annual soybean export quota to 400 000 tonnes, in a bid to promote foreign sales while continuing to guarantee that domestic consumption requirements are met."]
[2017,"June","BRAZIL / CHINA – infrastructure investment:  The Governments of Brazil and China announced the creation of an investment fund for infrastructure projects. The fund will be valued at USD 20 billion, with Brazil and China contributing, respectively, one-fourth and three-fourths of the resources. Reportedly, China is eager to invest in railroad, highway and port projects that could lower the cost of raw agricultural products such as soybeans being shipped to China. One such project is the Ferrogrão (or Grain Railway) that would connect grain production regions in northern Mato Grosso to Miritituba, a river port in the Amazon Basin (see also MPPU Feb. & Aug.’16)."]
[2017,"June","CANADA – pesticide regulations:  Canada’s Food Inspection Agency (CFIA) determined that glyphosate – an herbicide widely used in the cultivation of oilseeds, other arable crops and fruits – is neither genotoxic nor likely to pose a human cancer risk and that dietary exposure associated with use of the herbicide is unlikely to pose significant risks to human health. The agency’s decision follows similar judgements in the European Union (see MPPU Dec.’15 & Apr.’17) and the United States (see MPPU Nov.’16)."]
[2017,"June","CANADA – feed standards:  Canada’s Food Inspection Agency (CFIA) approved the use of mechanically extracted camelina oil as a feed ingredient for farmed fish. Camelina oil is viewed as a cost-effective replacement of wild-sourced fish oils in aquaculture feed. The approval paves the way for camelina sativa to serve as a new rotation option for potato farmers in Maritime Canada. In recent years, camelina sativa started attracting interest in the EU, the United States and Canada due to the suitability of its oil for a variety of uses, including as feedstock in the production of road and aviation biofuel (see also MPPU Apr.13’, Feb.’14, Feb.’15, Feb./June’16 & Feb.’17)."]
[2017,"June","CANADA – health policy:  Canada’s Health Ministry confirmed its plan to prohibit the use of partially hydrogenated oils (PHOs) – a key source of harmful trans fats in food products – by summer 2018 (see MPPU Dec.’16). Canada’s initiative aligns with global efforts toward the elimination of PHOs in foods. According to the ministry, maintaining the current voluntary approach (see MPPU Sep.’11 & July’16) would be insufficient to achieve the objective of reducing the population’s trans fat intake to the lowest level possible. The ministry also intends to provide stakeholders with information on more healthful alternatives to PHOs, preferably unsaturated fats. As a disincentive for the industry to replace PHOs with saturated fats, the ministry proposed to include front-of-pack warnings on products that are high in saturated fats."]
[2017,"June","CANADA – GMO policy:  The Canadian Parliament voted against a private member’s bill calling for mandatory labelling of genetically modified foods. The debate in Canada follows last year’s passage, in the United States, of a bill introducing mandatory GM-labelling over a three-year period (see MPPU Aug.’16)."]
[2017,"June","CANADA – transportation policy:  While Canada’s lawmakers continue working on amendments of the country’s Transportation Act (see MPPU Dec.’16), the Government is considering extending a temporary revenue cap on rail transports of grains and oilseeds from Canada’s Western regions to the country’s main ports beyond its current expiry date of 1 August 2017."]
[2017,"June","CHINA – food standards:  China’s National Health and Family Planning Commission confirmed that a new safety standard for food processing meals will come into force on 23 June 2017 (see also MPPU Nov.’15). As the standard only applies to edible meals for food processing, it does not concern rapeseed and cottonseed meal."]
[2017,"June","CHINA – agricultural policy – Land distribution:  China’s Ministry of Agriculture issued guidelines concerning the future distribution of arable land as part of the country’s national food security strategy. In order to ensure the effective allocation of agricultural resources across the country, during the next three years, 60 million ha of land would be earmarked for the cultivation of rice, wheat and maize, and an additional 19 million ha for soybeans, rapeseed, cotton, sugar and rubber. For soybeans and rapeseed, respectively 6.7 and 4.7 million ha of protected land will be identified. The new policy is meant to help optimize the country’s agricultural production pattern, while making agricultural support programmes more effective. The country’s investments in fixed assets, transfer payments, and planned reforms in agricultural lending will concentrate on the target areas."]
[2017,"June","CHINA – agricultural policy – Tax reform:  The Ministry of Finance announced a reduction in the value-added tax on agricultural goods – effective 1 July 2017 – as part of ongoing reforms to simplify the country’s tax structure and stimulate domestic consumption. The measure will apply to oilseeds and oilseed products, whether locally produced or imported."]
[2017,"June","CHINA – agricultural policy – Farm insurance:  The Government plans to introduce new agricultural insurance programmes in selected counties to compensate farmers for crop losses resulting from natural disasters. The new insurance packages would be offered to family farms, large-scale growers and farmers’ cooperatives."]
[2017,"June","CHINA – agricultural policy – Crop-specific subsidies:  In China’s northeastern grain belt, farmers will continue to receive subsidies for growing soybeans and maize, based on area planted. Government officials confirmed that, for the 2017/18 crop, the subsidy provided for soybean cultivation would remain above that for maize, in order to encourage farmers to shift additional acreage from maize to soybeans. Soybean payments will be de-coupled from market prices, replacing the target price system in place from 2014 to 2016 (see also MPPU June/Nov.’14 & Nov.’16). The exact amount of the area-based subsidies will only be determined later in the season. In the meantime, provincial officials will compile detailed land statistics to determine the farmers’ eligibility for the subsidy. The central Government plans to allocate a lump sum for each subsidy to the concerned provinces, entrusting provincial authorities with the calculation and distribution of the subsidy to individual farmers."]
[2017,"June","CHINA – GMO policy:  As part of recent trade negotiations between China and the United States, China agreed to accelerate the evaluation of eight US-developed genetically modified crops, including two soybean varieties. Pending the Chinese authorities’ import approval, the concerned seed companies opted to delay the new varieties’ commercial release."]
[2017,"June","EUROPEAN UNION – pesticide regulations – Neonicotinoids:  The European Commission is considering to convert the EU’s existing temporary moratorium on neonicotinoid-based insecticides into a permanent ban. The allegedly bee-harming pesticides are widely used in the cultivation of rapeseed, sugar beet and other crops. In recent months, farmers’ representatives and industry groups disputed the results of studies linking the insecticides to bee declines. They also claimed that producers rely on neonicotinoid products to kill disease-spreading aphids that are resistant to other pesticides (see also MPPU Feb.’17). Experts also pointed out that the proposed ban could lead to other types of pesticides being overused, potentially allowing pests to develop resistance to them. "]
[2017,"June","EUROPEAN UNION – pesticide regulations – Glyphosate:  Based on the latest state of scientific research and taking into account the findings of a study recently conducted by the European Chemical Agency (see MPPU Apr.’17), the European Commission decided to start consultations with Member States about a possible 10-year renewal of the approval of glyphosate – one of the world’s most widely used herbicides. The 18-month approval granted last July is due to expire in December 2017."]
[2017,"June","EUROPEAN UNION – environmental policy:  The European Parliament passed a resolution calling for the introduction of a single mandatory certification scheme for Europe-bound palm oil, in a bid to ensure that all palm oil entering the bloc is produced in an environmentally and socially sustainable way. To prevent the EU’s renewable fuel targets from inadvertently contributing to deforestation, the resolution also recommends phasing out, by 2020, the use of biofuels produced from palm oil and other vegetable oils purportedly produced in an unsustainable way. Reportedly, the resolution was influenced by the observation that the certification schemes currently in use – such as the independent Roundtable on Sustainable Palm oil (RSPO) or the national schemes introduced by Indonesia (ISPO) and Malaysia (MSPO) – do not enforce blanket bans on forest and peatland clearance. Essentially, in its non-binding resolution addressed to the European Commission, the Parliament suggested that only sustainably produced palm oil – according to its own criteria – should enter the bloc. The motion faced strong criticism from palm oil producing countries, which labeled the initiative as discriminatory and protectionist. Last year, the EU imported approximately 7 million tonnes of palm oil, of which about half was used for biodiesel production. The bloc is the world’s second largest importer of palm oil after India."]
[2017,"June","INDIA – food standards:  India’s Food Safety and Standards Authority (FSSAI) informed that revised standards for oils and fats would come into force on 1 July 2017. The amended standards include a redefinition of inter-esterified vegetable fat and regulates the usage of food grade enzymes in oil refining processes."]
[2017,"June","INDIA – GMO policy:  The Genetic Engineering Approval Committee (GEAC) of India’s Environment Ministry backed the commercial use of an indigenously developed GM mustard seed. Last year, GEAC already provided its technical clearance, following favourable crop trials and safety tests (see MPPU Sep.’16). Pending the final approval by the Federal Government, the product could become the country’s first GM food crop cleared for commercial production (see also MPPU Mar.’15)."]
[2017,"June","INDONESIA – market regulation:  Indonesia’s State Logistics Agency (BULOG) allocated IDR 37 trillion (USD 2.8 billion) for the procurement of rice, soybeans and sugar. BULOG’s purchases, which can either be made on the domestic market or abroad, will be aimed at stabilizing domestic consumer prices. Furthermore, BULOG is seeking to improve cooperation with private stakeholders that agree to sell the commodities at the prices set by the agency. Moreover, BULOG plans to continue investing in post-harvest infrastructure, notably storage facilities, in order to strengthen the agency’s capacity to buy from local farmers."]
[2017,"June","INDONESIA – variable export tax:  After standing at USD 18 per tonne in February and March, Indonesia’s export tax on crude palm oil shipments was lowered to USD 3 per tonne in April and eventually suspended in May. The successive cuts were in line with the tax’ sliding regime and reflect the decline in the commodity’s world price (and hence in the official benchmark price used to determine the tax rate).",null,"   "]
[2017,"June","INDONESIA – oil palm replanting:  In 2017, Indonesia’s Oil Palm Estate Fund – the state agency set up in 2015 to collect a levy on crude palm oil exports (see MPPU July’15) – plans to support the Government’s oil palm replanting scheme with an allocation of IDR 500 billion (USD 37.6 million). The national scheme is aimed at raising productivity levels on small, independently run plantations, where average yields reportedly stalled at 1.7 tonnes of palm oil per ha – as opposed to up to 5.7 tonnes achieved on corporate-run plantations. Low productivity levels are primarily attributed to poor quality seeds and to the circumstance that palms are cultivated beyond their productive age. Private sources pointed out that the government’s initiative faces important administrative hurdles in that many of the targeted farmers are not able to prove their land ownership – a prerequisite for participating in replanting programmes."]
[2017,"June","INDONESIA – environmental policy:  Indonesia's President approved a two-year extension of a moratorium on issuing new licenses for the use of land designated as primary forest and peatland in the country (see also MPPU Aug.'11, June'13 & May'15). The six-year-old moratorium was scheduled to expire on 20 May 2017. Aimed at halting deforestation and pollution resulting from forest fires, the moratorium is said to concern a total of 66 million hectares. According to government officials, the latest extension gives concerned authorities more time to improve rules on forest and peatland governance and gather material to manage licenses more effectively. A number of civil society groups pointed out that forest cover losses remained high during the past six years. Allegedly, during 2014–2015, 1.5 million ha of forest cover were lost. Furthermore, some NGOs claimed that the recurrent outbreak of fires on forestland and drained peatland was to a large extent driven by plantation expansions in the oil palm, wood and paper sectors. While government sources reckoned that some land conversion continued due to permissions issued prior to the moratorium, NGO’s stressed that a number of factors compromised the moratorium’s effectiveness, notably: i) enforcement problems arising from decentralized decision-making; ii) disputes over land tenure; and iii) the circumstance that the moratorium was issued in the form of a presidential instruction, which does not entail legal consequences for perpetrators. A group of forestry experts urged that the moratorium on permits be complemented with livelihood programmes for locals to facilitate the generation of local income from forests without involving conversion."]
[2017,"June","JAPAN – feed standards:  The Japanese Government cleared a proposal to permit mixing selected oilmeals with feed maize in the production of compound feed. In the past, maize could only be mixed with animal protein such as fishmeal."]
[2017,"June","MALAYSIA - variable export tax:  After standing at 8 percent in February and March, Malaysia’s export tax on crude palm oil shipments has been lowered three times, mirroring the gradual decline in the commodity’s world price (and hence in the official benchmark price used to determine the sliding tax rate). In April, May and June 2017, the export tax stood at, respectively, 7.5 percent, 7 percent and 6 percent."]
[2017,"June","MALAYSIA – export promotion:  The Governments of Malaysia and India signed a Memorandum of Understanding aimed at helping raise the presence of Malaysian palm oil in the Indian market. The MoU provides a platform for Malaysian palm oil related agencies to explore – together with Indian research institutions and other organizations – new traits and applications of palm oil, specifically tailored to India’s fast growing market. The use of MSPO-certified palm oil (Malaysian Sustainable Palm Oil) will also be promoted under the accord."]
[2017,"June","MEXICO – agricultural policy:  While the country’s main programmes in support of agricultural production are set to remain in place, the Government announced cuts in the amount of subsidies provided to individual farmers in 2017, providing the following details:  i) under the country’s Pro-Oilseeds programme, support payments will drop from MXN 1 500 to MXN 700 per tonne of oilseeds produced (USD 83 to USD 39);  ii) under PROAGRO, the flat rates per ha for arable crops will be lowered for commercial farms but not for subsistence farmers;  and iii) the percentage of hedging operation costs receiving support will be reduced from 85 to 75 percent."]
[2017,"June","PERU – oil palm development:  The Peruvian Government committed to consult indigenous people (which typically do not possess recognized legal rights over their land) prior to approving oil palm projects that would affect them. Reportedly, the territories earmarked for oil palm expansion under the Government’s 2016–2025 development plan include at least 13 indigenous communities. "]
[2017,"June","TURKEY – import policy:  Turkey readmitted the Russian Federation to its list of accepted import tax-free origins for agricultural products including sunflower oil and sunflower meal. The Russian Federation had been suspended from the list last March, entailing that its shipments to Turkey faced prohibitive tariffs (see MPPU Apr.’17)."]
[2017,"June","UNITED ARAB EMIRATES – biofuel policy:  According to the local press, the country could soon start to turn used cooking oil into biodiesel. Reportedly, the UAE Centre for Waste Management is considering to provide permits to companies to produce biodiesel from leftover cooking oil, fat and grease for use in buses and lorries."]
[2017,"June","UNITES STATES – biofuel policy – Import measure:  In April, following a petition filed by the US biodiesel industry (see MPPU Apr.’17), the US Department of Commerce launched preliminary investigations into biodiesel imports from Argentina and Indonesia for possible dumping and subsidization. In May, the US International Trade Commission (USITC) determined that there is evidence that the US biodiesel industry is hurt by such imports, which, allegedly, are subsidized and sold in the United States at less than fair value. Based on the Commission’s affirmative determination, the Department of Commerce is set to pursue its investigations, with preliminary countervailing and anti-dumping duty determinations due later this year. In 2016, roughly a third of the US biodiesel market (i.e. about 3.1 million tonnes) was supplied by imported biodiesel. Argentina alone exported around 1.5 million tonnes of biodiesel and renewable diesel to the United States."]
[2017,"June","UNITES STATES – biofuel policy – Iowa State, infrastructure assistance:  The Iowa Infrastructure Fund Bill, which provides USD 3 million in funding for the state’s Renewable Fuels Infrastructure programme, has been extended for an additional year until 30 June 2018. Under the programme pump operators receive assistance for the conversion of their equipment to raise renewable fuel sales. Iowa is the United States’ leading producer of biodiesel. "]
[2017,"June","UNITES STATES – biofuel policy –  Federal tax credit:     1.)  Legislation concerning the renewal of the USD 1.00-per-gallon biodiesel tax credit – which expired on 31 December 2016 – has been introduced in the US Congress. The bill envisages the subsidy’s extension for 3 years – retroactive from 1 January 2017 and through 31 December 2019. However, the main change concerns the stage in the supply chain that will receive the tax incentive: under the proposed bill, the subsidy would be provided to domestic biodiesel producers rather than blenders. Since its introduction in 2005, the tax incentive was directed to blenders, making no distinction whether the feedstock used was produced domestically or imported from abroad – a provision that has stimulated the importation of competitively priced biodiesel into the country, in part displacing US product. The proposed shift to a producers’ credit is aimed at preventing foreign manufacturers from accessing the tax benefit. However, the reform is opposed by some, who argue that the shift would increase profits for a limited number of producers, possibly reducing the overall availability of biodiesel and driving up its price. Previous bids to convert the blenders’ credit into a producer incentive have been turned down by the US Congress (see MPPU Aug.’15 & Feb.’16).      2.)  A separately introduced bill proposes to put an end to federal tax credits for biodiesel produced with animal fats. Allegedly, the current policy distorts the domestic market for animal fats by diverting this important raw material away from the manufacturing of cleaning and personal care products.     \n"]
[2017,"June","Sector development policies – Canada, rapeseed:  A public-private research partnership to develop advanced high-yielding rapeseed varieties has been set up in Canada, in a bid to uphold the competitiveness of the country’s rapeseed sector. The new platform will operate under Canada’s Genomic Applications Partnership Program (GAPP) and is set to benefit from co-funding by the provincial Government of Ontario. "]
[2017,"June","Sector development policies – Morocco, olive oil:  As part of their continuing support to Morocco’s olive oil sector, FAO and the European Bank for Reconstruction and Development (EBRD), in collaboration with Interprolive, Morocco’s olive oil industry association, organized a series of workshops to strengthen the country’s olive oil sector. The initiative brought together public and private stakeholders. Discussions focused on how to improve the sector’s inter-professional organization and ensure quality production. In the meantime, Interprolive started providing technical assistance to its members and launched a campaign to encourage Moroccan consumers to buy better quality olive oil packaged in bottles."]
[2017,"June","Sector development policies – Sri Lanka, coconut:  Given the prevailing shortage of coconut in the domestic market, the Government of Sri Lanka is considering to liberalize the importation of husked coconuts and fresh coconut kernel. The Government may also allow investment into fresh coconut milling capacity, with a view to foster domestic value addition and exports. According to government officials, a fast-growing international market for value-added coconut products (such as virgin coconut oil, coconut milk and coconut cream) has opened new opportunities for local processors."]
[2017,"June","Sector development policies – India, oil palm – Federal policy:  In a bid to reduce the nation’s reliance on imported edible oil, the Federal Government will step up its efforts to promote oil palm cultivation across the country (see also MPPU June’16). Restrictions on providing assistance to plantations cultivating more than 25 ha will be relaxed, and criteria for distributing support payments (for planting material, manuring, irrigation, inter-cropping and maintenance costs) are set to be revised. Both measures are aimed at attracting private entrepreneurs, corporate entities and cooperative bodies towards palm oil. The changes will be implemented in 133 districts across 12 states, primarily in the southern part of the country. For 2016, India’s total area under oil palm cultivation was estimated at 300 000 ha (comprising immature area), with average yields lingering around 0.5 tonne of oil per ha due to insufficient rainfall. In the meantime, roughly 60 percent of the country’s edible oil requirements continue to be satisfied through imports, with palm oil accounting for about 75 percent of the country’s edible oil import bill.         "]
[2017,"June","Sector development policies – India, oil palm – Telangana State:  The Government of Telangana will promote the establishment of oil plantations on 12 000 hectares in the eastern part of the state. The state subsidy on palm seedlings will be raised from INR 56 to INR 80, which leaves the farmer with a cost of about INR 10 per plant (1 USD = 64 INR). Some 450 000 seedlings are being raised in local nurseries in support of the programme. "]
[2017,"June","Soybean moratorium – Brazil:  According to a study jointly conducted by researchers in Brazil and the United States, Brazil’s voluntary moratorium – which banned the purchasing and financing of soybeans produced on illegally cleared land in the Amazon biome – has been more effective than previously considered. Reportedly, forest cover loss declined sharply after the measure’s introduction in 2006. Reportedly, deforestation is still ongoing, but it has slowed down considerably, and less of the deforested land is being used for soybean production. Extended regularly since its introduction, the moratorium was renewed indefinitely in May 2016 (see MPPU June’16). The initiative is supported by a multi-stakeholder coalition that brings together the private sector, environmental NGOs groups and the Brazilian government."]
[2017,"June","Disease control – Soybean rust (South America):  Scientists, industry representatives and government officials from Brazil, Paraguay and Bolivia set up a working group to combat the spreading of soybean rust (a fungal disease that affects soybeans and other leguminous crops) in South America. In Brazil, one of the most effective measures to combat the disease has been the enforcement of a soybean-free period of 3–4 months when no live soybean plants are permitted along fields or around storage and transport facilities, to hinder the movement of rust spores from one growing season to the next (see MPPU May & Aug.’15). The working group will look into the possibility of implementing similar restrictions in Paraguay and Bolivia. Furthermore, coordinated efforts are envisaged to slow down the disease’s increasing resistance to commonly employed pesticides."]
[2017,"June","Disease control – Nematode control (United States):  According to seed company Monsanto, the US Environmental Protection Agency (EPA) issued registration for tioxazafen, a nematicide said to provide broad-spectrum control of plant parasitic nematodes in maize, soybeans and cotton. Reportedly, EPA’s registration will enable US farmers to use the pesticide in 2018, pending state approvals. "]
[2017,"June","Product news – Carinata meal (Canada, USA):  A Canadian company gained approval form the US Food and Drug Administration to commercialize carinata meal as a non-GM protein meal for beef cattle feed in the United States. Carinata meal, which is said to match rapeseed meal specifications, is obtained as a by-product when brassica carinata is crushed for oil (see also MPPU Dec.’13). Carinata meal has previously been approved in Canada and the European Union. Reportedly, regions targeted for carinata cultivation include South America (where the plant can be grown as a second crop following soybeans) and North America, notably the southeastern United States and the northern Plains, which includes the southern Canadian Prairies. The crop is already cultivated in Europe, where the oil is used as biodiesel feedstock. "]
[2017,"June","Product news – Certified organic coconut oil (Vanuatu, New Zealand):  A coconut oil producer and exporter of Vanuatu has achieved certified organic status with certifying company BioGro in New Zealand. Reportedly, the BioGro certification label is widely recognized in New Zealand – Vanuatu’s top export market – as well as elsewhere in the region."]
[2017,"June","Product news  – Responsible soy (Brazil, EU):  A group of Brazilian and EU industry associations joined forces to support the production (in Brazil) and market acceptance (in the EU) of responsible soy, i.e. soybean produced in accordance with specific environmental, social and financial principles and criteria. The group’s objectives include involving European soy users in the development of tools that allow compensating Brazilian producers for their environmental services."]
[2017,"June","Product news – High-oleic groundnut:  Snack food producer Mars informed it was moving towards using exclusively high-oleic groundnuts in some of its products. High-oleic groundnuts are valued for their health profile, notably their high content of unsaturated fats. Furthermore, high-oleic oils enjoy a high oxidative stability and don’t need to be hydrogenated, hence preventing the formation of trans fatty acids. The company reported that its shift to high-oleic groundnuts has been slowed down by insufficient product availability."]
[2017,"June","Product news – Omega-3 rapeseed:  Australian seed company Nuseed is filing for regulatory approval of omega-3 bearing rapeseed in Australia, Canada and the United States and expects commercialization to commence in 2018 or 2019. Reportedly, the new product provides long-chain omega-3 oils similar to those found in fish oil. Commercial applications are planned in both aquaculture feed uses and human nutrition (see also MPPU Dec.’16)."]
[2017,"June","GMO market issues – Non-GM soy (Brazil):  Increased production of conventional soybean has been reported from the state of Mato Grosso in Brazil. While, in the country as whole, GM varieties account for approximately 96 percent of output, a niche market has emerged for non-GM soy in Brazil’s leading soybean-producing state. Reportedly, the new trend is driven by premia paid for conventional varieties, as demand for GM-free product is on the rise (and cannot be satisfied fully) in Europe and Asia. At present, the premium – which is needed to compensate farmers and traders for additional costs borne to prevent non-GM soybeans from being contaminated with GM material – is said to range around BRL 12 per 60 kilograms sack (or USD 61 per tonne). Encouraged by such premium, farmers could plant more non-GM soy in 2017/18, provided they manage to source sufficient quantities of seed. Currently, conventional soybeans account for roughly 14 percent of Mato Grosso’s total soy output. Reportedly, the reason for non-GM production being concentrated in Mato Grosso is that the state enjoys access to recently opened ports on the Amazon River that are specifically equipped to handle GM and non-GM material separately."]
[2017,"June","GMO market issues – GM cottonseed (Australia):  According to industry circles, the absence of regulatory approval for GM cottonseed variety Bollgard3 in China is threatening Australia’s cottonseed exporting sector. Reportedly, when the new variety was launched in Australia last year, the patent owner misapprehended the regulatory situation in China."]
[2017,"June","Futures Markets – China:  China’s Dalian Futures Exchange (DCE) plans to change the contract rules for its soybean futures in a bid to help investors hedge the risk in soybean import and provide a domestic pricing benchmark for soybean. Details of the envisaged changes are still to be provided."]
[2017,"June","Futures Markets – India:  India’s National Commodity and Derivatives Exchange (NCDEX) announced the launch of a futures contract for mustardseed cake. As the market of the animal feed is subject to considerable price volatility, the new futures contract is aimed to allow producers and traders to hedge their risk."]
[2017,"June","Futures Markets – European Union:  The pan-European exchange Euronext has launched rapeseed options contracts for delivery in 2019, without changing their specifications. The contracts had been suspended earlier this year to review their technical terms (see MPPU Feb.’17). Reportedly, market participants could not agree on potential changes to the oil content basis specified in the contract."]
[2017,"June","Biodiesel feedstock – Used cooking oil (Singapore):  Air carrier Singapore Airlines, in partnership with Singapore’s Civil Aviation Authority, started operating a series of biofuel-powered intercontinental flights. The flights will be powered by a blend of conventional jet fuel, hydro-processed esters and fatty acids produced from used cooking oil. The project is geared towards reducing the carrier’s carbon emissions."]
[2017,"June","Biodiesel feedstock – Used oils/fats (Italy):  Italy’s National Consortium for the Collection and Treatment of Used Oils and Fats (CONOE) signed a Memorandum of Understanding to supply used vegetable oils and fats to multinational oil/gas company ENI. The company, which has experience in producing renewable diesel, jet fuel and liquefied petroleum gas from palm oil, plans to process approximately 1 million tonnes of used oils/fats annually, starting in 2018. Reportedly, the new partnership also includes joint activities to promote the collection of used oil/fat at the household level, where the product habitually goes to waste. ENI expects to achieve significant reductions in carbon emissions and fresh water consumption by switching to used oils/fats."]
[2017,"June","Biodiesel feedstock – Jatropha oil (Egypt):  According to media reports, the National Research Centre of Egypt developed a jatropha oil-based fuel suitable for airplanes. The project included refining jatropha oil to make it resist freezing until at least – 45° degrees Celsius. Reportedly, the oils freezing point has been lowered through a thermal cracking process, plus the introduction of chemical additives. "]
[2017,"June","Research & Development – Groundnut oil authentication:  Chinese researchers presented a new analytical method for detecting fraud in groundnut oil. Based on low-field nuclear magnetic resonance and chemometrics, the new technique is said to eliminate the sample pre-treatment step, thus allowing to detect adulteration of groundnut oil with other vegetable oils in a single 5-minute analysis. Groundnut oil is a major edible oil in China, along with soybean and rapeseed oil. Being more expensive than the other two oils, it is prone to adulteration by unscrupulous dealers."]
[2017,"June","Research & Development – Biodiesel purity:  Brazilian scientists developed a new method for verifying the purity and quality of biodiesel. The detection of raw vegetable oils in biodiesel – as opposed to refined, trans-esterified oil – is said to be crucial as the presence of such oils lowers the quality of the fuel, increases pollution and can cause damage to engines. The newly developed detection method uses nuclear magnetic resonance spectroscopy."]
[2017,"June","Research & Development – Rapeseed meal:  Research conducted in Canada suggests that pork producers can reduce feed costs by including rapeseed meal at higher than traditional levels in the rations of lactating sows (see also MPPU Aug.’15 & Mar.’16)."]
[2017,"June","Research & Development – Palm oil yield:  An Indonesian oil palm firm reported that it developed a new variety of oil palm capable to increase palm oil yields by up to double the current levels. Allegedly, the new material, which has been developed using traditional plant breeding methods, yields 11–13 tonnes of crude palm oil per ha per year during the palm’s prime age (10–18 years), with oil extraction levels ranging 32–36 percent. Reportedly, this compares to a current capacity of 7.5–8 tonnes per ha under optimal conditions and a countrywide average level of less than 4 tonnes. Seedlings also reach maturity faster – supposedly after 24 months as opposed to the current industry average of 30 months. Reportedly, the new clones have been registered in Indonesia’s Catalogue of Seeds and could be available at large-scale within five years. Stagnating yield levels represent a major concern in the palm oil industry worldwide (and in Southeast Asia in particular) – especially in recent years, as growth via area expansion started to face environmental and social challenges."]
[2017,"June","Research & Development – Sunflowerseed genome:  Reportedly, an international team of scientists published the first sunflower genome sequence. Access to the genome is expected to assist future research programmes using genetic tools to improve the plant’s crop resilience and oil production."]
[2017,"June","Sustainable oil palm production – International research:  An international consortium on Sustainable Agricultural Landscapes in Southeast Asia (SALSA) has been launched in Malaysia and Indonesia. The founding members are France’s agricultural research centre CIRAD, two plantation companies, an Indonesian plantation crop research network and the Asian and Pacific Coconut Community (APCC). The overall objective of the public-private partnership is to promote sustainability and deliver specialized training in major commodity chains, including palm oil."]
[2017,"June","Sustainable oil palm production – Certification, Malaysia:  The principles and criteria for MSPO, the Government-backed sustainability certification for oil palm that is due to become mandatory in Malaysia, will be revised to make it more compatible with international standards, according to the local press. Reportedly, during the exercise, care will be taken to keep the certification process affordable and tailored to the specific needs of domestic producers (see also MPPU Apr.’17). "]
[2017,"June","Sustainable oil palm production – RSPO, standards revision:  The globally recognized self-regulating industry body for palm oil, RSPO (Roundtable on Sustainable Palm Oil), has launched the review of its standards – an exercise the body conducts every five years, to ensure that its criteria remain relevant and reflect stakeholder understanding of good sustainability practices. RSPO expects to adopt a revised set of principles and criteria by November 2018. Reportedly, the revision will focus on, inter alia, i) making standards more measurable and objective, ii) the inclusion of smallholders, iii) deforestation; iv) product traceability, v) human and labour rights, and vi) jurisdictional certification approaches (see MPPU July’15 & Nov.’16).  "]
[2017,"June","Sustainable oil palm production – RSPO, RSPO-Next certification:  A Colombian oil palm grower has become the first producer to receive RSPO-Next certification, a voluntary add-on module launched in 2016 engaging RSPO members to exceed the body’s basic sustainability standard, notably with regard to deforestation, peatland development and indigenous peoples’ rights (see MPPU July’15 & Mar.’16). "]
[2017,"June","Sustainable oil palm production – RSPO, grievance cases:  Recently, RSPO has taken action against specific members for allegedly violating the organization’s codes of practice. In one case, RSPO claimed that a member had violated community rights by not following the proper legal process for obtaining land from an indigenous group, thus recommending that the disputed land be re-measured for development approval with better community participation, while the company would renegotiate the terms for planting oil palm on the land. In another case, RSPO claimed that a member had carried out deficient High Conservation Value (HCV) assessments and had set aside inadequate areas to protect HCV areas, thus requesting the concerned company to suspend all land clearing operations. RSPO also reproached a former member for its alleged destruction of primary forest. Civil society groups following these disputes view them as important test cases for RSPO and the organization’s ability to uphold its own standards and regulations. "]
[2017,"July","ARGENTINA – biodiesel policy:  The Argentine Government suspended the country’s export duty on biodiesel for the months of June and July. In April and May, the variable duty, which is reviewed on a monthly basis, stood at, respectively 7.05 percent and 0.13 percent. The duty’s suspension is expected to improve the competitiveness of the Argentine biodiesel on the world market, at a time when the country’s export prospects are threatened by reduced demand from key buyers, notably the United States (see below and MPPU June’17)."]
[2017,"July","ARGENTINA – seed policy:  In a bid to ensure full transparency in the domestic seed market and facilitate the collection of royalties by seed producers, the country’s Ministry of Agriculture reminded farmers of their obligation to formally declare the quantity and origin of seeds kept on-farm for planting – failing which they face fines and lose the permission to use seeds coming from prior harvests for planting (see also MPPU Feb.’17).    "]
[2017,"July","AUSTRALIA – GMO policy:  In the Parliament of West Australia, a petition was filed calling on the State Government to compensate farmers when GM-rapeseed contamination causes them to lose their GM-free or organic certification. According to the motion, GM contamination can create significant economic losses or extra costs, because GM-rapeseed or rapeseed tainted with GM material command lower prices per tonne on world markets. Although cultivation of GM-rapeseed has been allowed in three Australian States (comprising West Australia), the country remains the world’s leading supplier of GM-free rapeseed – including to the lucrative EU market (see also MPPU June’14, Nov.’15 & Sep.’16).  "]
[2017,"July","BRAZIL – agricultural policy:  The government presented its agricultural support package for the 2017/18 season. In the forthcoming season, commercial farming will be granted access to loans worth BRL 188.3 billion (USD 57.9 billion) – a 2.5 percent increase from last year’s level, which, however, compares to a 2016-2017 inflation rate of about 4 percent. In 2017/18, about 80 percent of agricultural funding will be allotted to loans for production and marketing operations and 20 percent to on-farm investment loans. The latter will attract most of the year-on-year increase in financial resources, with special attention given to investments in on-farm stock-holding facilities and improved production technologies. Overall, some 80 percent of the loans will be provided at concessional interest rates of 7.5–8.5 percent, which compares to rates of 8.5–9.5 percent applied last season. The remainder will be offered at market rates – with the Central Bank’s benchmark rate standing at 10.25 percent in May 2017. The borrowing limits for individual farm households will remain unchanged from last year. Separate from the above loan programmes, the Government pledged to raise public outlays for crop insurance subsidies for the second year in succession (reaching BRL 550 million, or USD 169 million), while funds specifically earmarked for family farms will remain unaltered at BRL 30 billion (USD 9.21 billion).                "]
[2017,"July","CHINA – GMO policy:  China’s Ministry of Agriculture renewed import approvals for 14 GMO crops and approved two new GMO crops, as the country accelerated its evaluation of GM-products under broader efforts to promote economic and trade ties with the United States (see MPPU June’17). In China, the planting of GM food crops remains prohibited, but GMO imports are allowed for use in the country’s animal feed industry. The recent approvals, which are valid for a three-year period lasting until 2020, include three dated rapeseed varieties, four dated soybean varieties and one new soybean variety (Monsanto’s “Vistive Gold”). Another new, US-developed soybean variety, DowAgroSciences’ “Enlist”, is still awaiting approval."]
[2017,"July","CHINA – agricultural policy:  The Government informed that public outlays for payments to encourage crop rotation will total CNY 2.56 billion in 2017, compared to CNY 1.44 billion last year (respectively USD 376 million and USD 212 million). Farmers will continue to receive per-hectare subsidies for rotating their maize crops with other crops (notably soybeans) every other year as well as to leave some land fallow (see also MPPU June’17). Reportedly, the area targeted by the subsidies has been raised to 800 000 hectares, about 85 percent more than last year. Payments will be concentrated in the country’s northeastern provinces (where, in recent years, maize expanded at the expense of soybeans) and to areas deemed unsuitable for maize cultivation.    "]
[2017,"July","INDIA – agricultural sector support – Farm loan waivers:  The states of Maharashtra, Punjab and Uttar Pradesh agreed to partially waive farm loans to address growing rural distress caused by low crop prices following oversupply. India is holding large levels of food grains from last year’s record harvest, while exports have stalled for a number of reasons. Maharashtra and Punjab intend to forgive the equivalent of, respectively, USD 5.27 billion and USD 1.5 billion in farm loans, effectively writing off debts of many small farm holdings. Reportedly, the measures could benefit close to 10 million farmers, with write-offs of up to INR 150 000–200 000 per farmer (USD 2 325–3 100).    "]
[2017,"July","INDIA – agricultural sector support – Minimum support prices (MSP):  In India, market prices for soybeans and other oilseeds reportedly dropped below MSP levels. To protect farmers from the recent price declines and prevent a shift in plantings away from soybeans and other oilseeds to competing crops, the Government raised the MSPs for Kharif oilcrops by 4–10 percent and to renew the special bonuses reserved for crops characterized by widening domestic supply deficits. Public officials warned that buying oilcrops below the government-set prices would attract prosecution. Including bonuses, the MSPs for 2017/18 have been set as follows: soybeans INR 30 500 per tonne (USD 473), up 10 percent from last year’s level; groundnuts-in-shell INR 44 500 per tonne (USD 690), up 5.5 percent; sunflowerseed INR 41 000 per tonne (USD 635), up 3.8 percent; sesamum INR 53 000 per tonne (USD 821), up 6 percent; and nigerseed INR 40 500 (USD 627), up 5.9 percent. For comparison, the support prices for paddy, maize, pulses and cotton have been raised by, respectively, 5 percent, 4 percent, 7–8 percent, and 4 percent. Farmers and industry associations maintained that public market interventions continue to be insufficient to support the MSPs. They also renewed their calls for other remedial actions, in particular higher import duties on vegetable oils. Reportedly, the latest erosion in soybean market prices has been triggered by poor demand from local crushers and unusually large old-crop inventories, which essentially stem from uncompetitive prices of domestically produced soybean oil vis-à-vis imported vegetable oils."]
[2017,"July","INDIA – agricultural sector support – Input costs:  According to media sources, the Central Government exhorted private companies to lower the prices of pesticides, seeds and other agricultural inputs to support public initiatives taken to assist farmers.    "]
[2017,"July","INDIA – tax policy:  Under India’s new Goods & Sevices Tax, GST (rolled out on 1st July 2017), oilseeds and vegetable oils fall in the 5 percent tax category, blended oil and margarine attract 18 percent tax, and oilmeals are tax-exempted. Essentially, the new classification is comparable to that applied under the previous value-added tax regime. However, the country’s industry associations demanded that oilseeds be moved to the zero tax bracket – akin to other essential commodities like rice, wheat and sugar, while blended oil and margarine should be taxed at 5 percent.","         "]
[2017,"July","INDONESIA / CHINA – biodiesel co-operation:  According to media sources, representatives from the two countries discussed about the possibility of Indonesia supporting China in its goal to raise domestic biodiesel consumption. Reportedly, Indonesia is ready to cooperate with China, whether by supplying finished biodiesel, crude palm oil (as feedstock for biodiesel production), or the technology required to produce biodiesel. At the same time, Indonesia also invited China to invest in Indonesia’s downstream palm oil processing sector. Based on China’s 13th Five-Year-Plan, domestic biodiesel consumption would climb to 2 million tonnes by 2020 – from today’s level of less than 0.5 million tonnes. In the case of Indonesia, on the other hand, the biodiesel market is more mature and the industry is faced with excess production capacity – hence the search for new export markets.         "]
[2017,"July","JAMAICA – biofuel policy:  The state-owned Petroleum Corporation of Jamaica has developed diesel containing 5 percent of castor oil-based methylesther and is testing the biodiesel on motor vehicles. Reportedly, the Jamaican Government is envisaging the introduction of transport biodiesel, with a view to cut the country’s energy import bill and contribute to the reduction of GHG emissions.       "]
[2017,"July","NIGERIA / EUROPEAN UNION – trade standards:  According to Nigeria’s Food and Drug Agency, last year, the EU rejected 24 food products originating from Nigeria for failing to meet the bloc’s trade standards. Reportedly, groundnut, palm oil and sesame seeds figured prominently among the rejected commodities, with aflatoxin contamination (groundnut) and the presence of toxic colouring agents (palm oil) as key issues. Reportedly, the concerned shipments left the country illegally, without the required certification.      "]
[2017,"July","NORWAY – biofuel policy:  A resolution passed by the Norwegian Parliament calls on the country’s Government to take steps to end – on environmental grounds – public procurement of palm oil-based biodiesel, while promoting the use of sustainably produced, advanced biofuels."]
[2017,"July","PARAGUAY – soybean export tax:  Paraguay’s Lower and Upper House approved a bill introducing a 10 percent tax on soybean exports. Government officials said that Paraguay’s President would likely veto the measure (as done with a similar proposal back in 2013 – see MPPU Nov.’13), citing concerns that the proposed tax would hurt small and medium-sized farms. As a substitute, to increase state revenue, the Government proposed to raise the value-added tax on agricultural products. Reportedly, farmers have put their 2017/18 planting decisions on hold as, in case the export tax was approved, soybean plantings could be downsized.   "]
[2017,"July","THAILAND – market regulation:  The Government of Thailand periodically implements measures to stabilize the domestic price of palm oil in a bid to support producers or consumers. According to media reports, in June 2017, the Government invited retailers of (palm oil-based) biodiesel to increase their stocks of the fuel by 40 percent so as to help absorb excess palm oil supplies and support domestic prices. Reportedly, during the recent production peak the price of palm oil tumbled, hurting farmers. The Government’s stock-holding proposal is expected to help absorb an additional 76 000 tonnes of palm oil from the market. To support farmers, the Government also raised the floor price for palm fruit to 4.30 THB per kg (USD 126 per tonne), which, reportedly, has helped to keep the market price for crude palm oil at around THB 23 per kg (USD 674 per tonne).         "]
[2017,"July","UKRAINE – price regulation:  The Ukrainian Government decided to discontinue, from 1st July 2017, state regulation of food prices, including for sunflower oil and butter. Previously, limits were imposed on rises in market prices, and food manufacturers were required to submit justifications for price changes to the concerned state agency. Reportedly, an experimental suspension of price regulations implemented over a 3-month period last year did not significantly affect consumer prices.   "]
[2017,"July","UNITED STATES – biodiesel policy – Countervailing/anti-dumping measures:  The US Department of Commerce decided to extend its trade investigations into biodiesel imports from Argentina and Indonesia (see MPPU June’17), which implies that any determination of preliminary countervailing duties and anti-dumping duties will be due by, respectively, 22nd August and 20th October (as opposed to the previous deadlines of 16th June and 30th August)."]
[2017,"July","UNITED STATES – biodiesel policy – Heating oil-biodiesel blends, New York State:  Five percent biodiesel blends in home heating oil will become mandatory in New York City and downstate New York counties by, respectively, 1st October 2017 and 1st July 2018. With a view to reduce the region’s carbon footprint, New York City mandated 2 percent blends back in 2012, with subsequent increases set to lead to 20 percent blends by 2034. Reportedly, the city is the US’ largest municipal consumer of heating oil."]
[2017,"July","Transport infrastructure – Brazil:  Government officials reported further improvements in Brazil’s northern port infrastructure. In recent years, the development of new export corridors in the country’s so-called “Arco Norte” region (see MPPU Aug.’16) attracted significant private and public funding. Based on the latest investments, industry experts estimate today’s combined shipment capacity of ports located along Brazil’s north-Atlantic coast at 40 million metric tonnes of grains per year, with projections for 2025 pointing to 64 million tonnes. For marketing year 2017/18, actual exports via the new export corridors have been pegged at 27 million tonnes (i.e. 26 percent of Brazil’s aggregate maize and soybean production), which compares to only 7 million metric tonnes (or 16 percent of the combined maize/soy output) in 2009/10. Hand in hand with this increase, a decongestion in shipments via the traditional south-bound routes has been observed, with ports along the Brazil’s south-east/southern coast gradually shifting their vocation to container traffic and shipments of higher value-added products. Reportedly, in order to fully realize the potential of the new north-bound export channels, a number of road and rail links remain to be completed, paying due attention to environmental considerations. This concerns in particular the paving of 160 km of highway BR-163, the upgrading of highway BR-364, and the “Ferrogrão” railway project (see also MPPU June’17).      "]
[2017,"July","Variable palm oil export tax – Indonesia, Malaysia:  In Indonesia, the export tax on crude palm oil has been set at zero for both June and July, as the commodity’s reference price remained below the threshold that would trigger taxation.  In Malaysia, by contrast, the variable tax for July has been raised to 6.5 percent (compared to 6 percent in June), mirroring a small increase in the relevant benchmark price for crude palm oil.  "]
[2017,"July","Sector development measures  –  European Union – soybean & protein crops:  The Governments of Germany and Hungary proposed an EU-wide initiative – called “EU Soya Declaration” – promoting the production of non-GM soybeans and other legume crops for food and feed. The programme is meant to contribute to the development of more sustainable and resilient agricultural systems, while taking into account growing demand for GM-free foods. The initiative is also designed to tackle the bloc’s high rate of dependency on imported soybeans, which supposedly makes European agriculture vulnerable to external market conditions. Reportedly, several EU member states are ready to back the declaration. Back in 2013, concerned by the dearth of non-GM soy on the EU market, the private sector launched an initiative to promote the importation of GM-free soy from Brazil, with a view to offer European consumers the choice to buy non-GM food products (see MPPU June’13)."]
[2017,"July","Sector development measures – Islamic Rep. of Iran / FAO – soybeans:  The Government of the Islamic Rep. of Iran and the UN Food and Agriculture Organization launched a two-year technical cooperation project for the promotion of sustainable oilseed production in the country, with particular attention given to the soybean value chain. Ultimately, the project aims at reducing the country’s strong dependence on imported oilseed products:  currently, about 90 percent of domestic vegetable oil and oilmeal consumption are met through imports."]
[2017,"July","Sector development measures  – Nigeria – oil palm:  According to press reports, Nigeria’s Raw Materials Research & Development Council (RMRDC) distributed 10 000 seedling of a high-yielding oil palm variety to farmers associations and cooperatives with a view to (i) boost the production of raw materials for the country’s vegetable oil industry, (ii) diversify agricultural production, and (iii) reduce reliance on imported products (see also MPPU June/Nov.’14 & Aug.’15). The initiative is linked to a federal programme aimed at developing one million hectares of oil palm over five years. Reportedly, RMRDC will also collaborate with private sector investors to promote the establishment of vegetable oil refining and oleochemical plants in the country. "]
[2017,"July","Sector development measures – Nigeria / Indonesia – oil palm:  In line with on-going efforts to promote economic cooperation and bilateral trade between Nigeria and Indonesia, government representative from both sides agreed to collaborate in the development of Nigeria’s palm oil industry. Nigeria was also invited to join the Council of Palm Oil Producing Countries (CPOPC). The Council was established recently by Indonesia and Malaysia, in a bid to promote price stabilization and sustainable palm oil production."]
[2017,"July","Sector development measures – Tunisia / Japan – olive oil:  According to a team of Japanese and Tunisian researchers (supported by Japan’s Science and Technology Research Partnership for Sustainable Development, SATREPS), oils produced from Tunisian olive varieties are exceptionally rich in natural anti-oxidants and anti-allergens, potentially implying a superior health profile. Reportedly, the Japan International Cooperation Agency (JICA) currently endeavours to provide the necessary conditions to launch a Tunisian olive oil label in Japan."]
[2017,"July","Research & development news – High-oleic safflower seed:  The Indian Institute of Oilseeds Research developed – using traditional breeding methods – three high-oleic safflower lines suitable for cultivation under Indian conditions. Reportedly, the new lines contain up to 75 percent of oleic fatty acid – as opposed to between 16–20 percent in conventional varieties. High-oleic oils are sought by food manufacturers, retailers and consumers alike, thanks to their suitability for deep-frying and various oleochemical uses, their extended shelf-life, and their wholesome health profile of the respective oils. Given that the research benefited from private sector funding, two of the new varieties have been licensed – for the first three years – to a private firm that already started large-scale commercial production."]
[2017,"July","Research & development news – Rapeseed meal:  In the United States, a group of researchers reported the successful conversion of rapeseed meal into a high-protein feed additive. Allegedly, the research project determined the optimal fungal culture to reduce undesirable glucosinolates, fiber and residual sugars, while raising the protein content and nutritional value of the meal. The conversion process takes place under solid-state fungal incubation conditions. "]
[2017,"July","Palm oil – RSPO – Sales of certified oil:  The Roundtable on Sustainable Palm Oil (RSPO), the world’s principal private entity for voluntary certification of sustainably produced palm oil, informed that physical sales of certified sustainable palm oil have seen a 43 percent rise in the first five months of 2017, compared with the same period last year. Reportedly, the increase was particular evident within the ‘identity preserved’ and ‘mass balance’ supply chains. By contrast, sales through the ‘book & claim’ chain model (which bypasses the physical supply chain and thus contributes only indirectly to sustainable production) has seen a significant contraction last year. RSPO said it will closely monitor the on-going shift between certification methods, because the ‘book & claim’ mechanism plays a fundamental role in linking growers who do not have access to the physical supply chain to the market for certified produce. Meanwhile, the issue that total supplies of certified produce significantly exceed actual sales persists: the latest sales statistics suggest that roughly half of the available certified supply does not find a buyer and is sold as conventional palm oil, i.e. without fetching a price premium."]
[2017,"July","Palm oil – RSPO – Children’s rights:  A recently signed MoU between RSPO and the United Nations Children’s Fund (UNICEF) aims at changing business practices on children’s rights and workers’ welfare in the palm oil sector. The initiative envisages joint workplace programmes on the rights of children and working families, while RSPO also committed to raising awareness amongst members and mainstreaming child rights into its sustainability standards."]
[2017,"July","Palm oil – RSPO – Concession maps:  RSPO partnered with the World Resources Institute (WRI) to create “GeoRSPO”, an interactive mapping platform featuring concession maps submitted by grower members – overlaid with outside information on tree cover, topography, past fire occurrence and new fire alerts. The system is described as a powerful analytical tool to monitor developments on RSPO members’ palm oil concessions. (See also MPPU July’16 on a comparable initiative) "]
[2017,"July","Palm oil – private sector news – Colombia:  Emulating similar efforts in the Asian continent, global agri-business firm Cargill has launched a programme aimed at promoting sustainable palm oil production in Latin America. In partnership with a local trading company and an international non-profit organization, the company plans to support 480 oil palm smallholders in Colombia over a 2-year period. Reportedly, participating farmers will receive direct training and support on good agricultural practices and improved farm management techniques, covering the areas of health, safety, and environmental/social impact management. While participants are expected to gain improved access to the global market through the adoption RSPO principles and criteria, the initiative is also meant to support Cargill’s objective of setting up its own, fully traceable and sustainable palm oil supply chain by 2020."]
[2017,"July","Palm oil – private sector news – Indonesia:  Indonesia’s main palm oil and timber associations are seeking, via a judicial review, to reduce their liability for fires that occur on their land, and to ban slash-and-burn practices by small farmers. The initiative is linked to ongoing discussions over who bears responsibility for the fires that occur annually across the country when peatland is drained to develop oil palm and timber plantations. Reportedly, environmental and social advocacy groups are defending the regulations contested by the industry associations, pointing out that, as far as  small farmers are concerned, a the proposed ban on traditional land clearing methods would pose threats to indigenous people whose livelihoods depend on agriculture."]
[2017,"July","Palm oil – private sector news – Marketing strategies:  Confectionary group Ferrero – known for its hazelnut-cocoa spread ‘Nutella’ that uses palm oil as an ingredient – has won a court case against food retailer Delhaize, who claimed that its rival palm oil-free spread was healthier and more sustainable than spreads containing palm oil. The ruling issued by the Belgian Court of Appeal states that the retailer’s claims were \"unverifiable, unsubstantiated by fact-based claims, and therefore not objective\" in relation to both environmental and health allegations made against palm oil. "]
[2017,"July","Biodiesel – private sector news – China – used cooking oil:  A subsidiary of China’s state-owned oil company Sinopec is planning to set up a used cooking oil (UCO) biofuel plant in Eastern China. The plant would convert 100 000 tonnes of UCO into 30 000 tonnes of aviation-grade biofuel a year. Reportedly, the fuel would be sold to airlines operating long-haul international flights, especially to countries that charge high emission taxes."]
[2017,"August","BRAZIL – pest control:  The Brazilian state of Mato Grosso du Sul is preparing to join the states of Mato Grosso, Goias and Parana in imposing an annual soybean-free period to help control the spread of Asian soybean rust from one growing season to the next. The measure would ban the so-called safrinha crop, i.e. the practice of planting a second crop of soybeans in the same field during the same growing season. Even though safrinha soybeans only account for a very small acreage in Mato Grosso du Sul, scientists confirmed the crucial importance of the ban in their efforts to control the disease. Once the measure will become effective in the named state, about two thirds of Brazil’s soybean area will be subject to safrinha restrictions. (See also MPPU June’17 on efforts to introduce similar restrictions in neighbouring Paraguay and Bolivia.)   "]
[2017,"August","EUROPEAN UNION – biodiesel anti-dumping duties:  In line with pledges to bring the bloc’s anti-dumping duties on biodiesel imports from Argentina and Indonesia into conformity with WTO rules (see MPPU Jan’17), the EU Commission has tabled a proposal for lowering the duties that are in place since November 2013. Under the proposal, the duties on imports from Argentina would be reduced from around 25 percent to 9 percent, and those on Indonesian produce from about 19 percent to 5 percent, according to media reports. The EU’s agriculture and biodiesel lobbies strongly criticized the proposal, arguing that their sectors would be severely impacted by the reduction in duties, which, allegedly, would trigger an influx of low-cost biodiesel from Argentina and Indonesia into the bloc. The Commission decided to postpone the final vote on the matter to September 2017."]
[2017,"August","FRANCE – palm oil use:  France’s Environment Ministry is considering to introduce measures restricting the use of palm oil in biofuels, based on the alleged prevalence of unsustainable production methods in countries of origin. Details of possible domestic measures have not been provided. Past proposals to introduce – also on environmental grounds – a surtax on crude palm oil imports destined for food use failed to obtain parliamentary approval (see MPPU Apr.’16). "]
[2017,"August","INDIA – food standards: India’s Food Standards and Safety Authority (FSSAI) invited public comments on a set of regulatory amendments concerning (i) the removal of the Boudouin test requirement for blended edible vegetable oils, and (ii) provisions regulating the sale of hydrogenated vegetable oils/fats."]
[2017,"August","INDIA – food standards: FSSAI announced a further postponement in the compliance date for mandatory declaration of trans fat and saturated fat content on food product labels (see also MPPU Apr.’16). Reportedly, the new compliance date will be 30 September 2017 and no further extensions will be granted. The additional deferral is meant to allow manufacturers to utilize existing stocks of packaging material."]
[2017,"August","INDONESIA – environmental policy:  Indonesia’s Environment Minister proposed to turn the country’s temporary moratorium on issuing new licenses for the use of land designated as primary forest and peatland into a permanent ban. In place since 2011, the moratorium has been renewed for a third time – until May 2019 – earlier this year (see MPPU June’17)."]
[2017,"August","MALAYSIA, INDONESIA – joint action on palm oil:  The Governments of Malaysia and Indonesia informed that they would consider challenging at WTO level possible measures by the European Union to restrict palm oil imports on sustainability grounds. The announcement is related to a recent resolution by the European Parliament that (i) calls for mandatory certification of all Europe-bound palm oil, and (ii) recommends phasing-out the use of biofuels made from palm oil and other vegetable oils purportedly produced in an unsustainable way (see MPPU June’17 and above item ‘FRANCE – palm oil use’). Meanwhile, the two countries agreed to carry out a joint mission to Europe to engage with relevant parties and stakeholders, and informed that they were ready to work with trade partners in addressing their concerns over sustainability. The two governments will coordinate their actions under the Council of Palm Oil Producing Countries (CPOPC), an initiative set up by Malaysia and Indonesia to stabilize prices through concerted actions on production and stocks."]
[2017,"August","THAILAND – biodiesel policy:  In Thailand, the mandatory biodiesel blending rate of 7 percent has been reintroduced in May 2017. The rate had been temporarily lowered to 5 and 3 percent last year following shortages in domestic palm oil supplies and consumer price hikes (see MPPU Sep.’16). By contrast, in recent months, producer prices dropped sharply amid rising palm oil output, triggering Government measures to support domestic palm oil uptake (see MPPU July’17), including the recent revision in the biodiesel blending rate."]
[2017,"August","UNITED STATES – biofuel policy – consumption targets for 2018 and 2019:  The Environmental Protection Agency (EPA) published its proposals for mandatory consumption of total, conventional and advanced renewable fuels in 2018, as well as biomass-based diesel in 2019. As in past years, several of the proposed volumes range below the statutory targets set by Congress in 2007, allegedly reflecting the need to account for changing market realities. For 2018, EPA proposed (i) a slight year-on-year drop in the volume of total renewable fuels, which would keep volumes significantly below the congressional target; (ii) to leave non-advanced/‘conventional’ biofuels (mostly maize-based ethanol) unchanged compared to 2017, compliant with the original targets; and (iii) to lower advanced biofuels from the 2017 level, hence falling short of statutory volumes. Under the ‘advanced biofuels’ category, volumes of biomass-based diesel produced from vegetable oils and animal fats (which were raised in past years) would remain unchanged in 2019. Furthermore, ‘biomass-based diesel’ would continue to qualify as well under the ‘undifferentiated advanced biofuels’ category. EPA invited public comments on the proposed volumes, informing that final figures would be published by 30 November 2017. Representatives of the country’s biodiesel industry maintained that EPA’s biodiesel proposal continues to underestimate the sector’s capacity to produce much higher volumes."]
[2017,"August","UNITED STATES – biofuel policy – court ruling:  Directly related to the above, in July 2017, a US court ruled that the methodology used by EPA to justify past reductions in biofuel consumption mandates (relative to the statutory targets set by Congress) was incorrect. The ruling was made in response to a petition filed in 2016 by an alliance of biofuel advocacy groups. According to the court ruling, rather than taking into account renewable fuel supplies available to refiners and importers, EPA primarily considered biofuel demand expressed by consumers – a consideration not allowed under the relevant law. The ruling could force EPA to revise upward the consumption targets set for 2016. Reportedly, the court decision resulted in US renewable fuel credits climbing to multi-month highs, while share prices of mineral oil refiners dropped.  "]
[2017,"August","Variable palm oil export tax – Indonesia, Malaysia:  Indonesia kept the export tax on crude palm oil at zero in August, as the commodity’s reference price remained below the threshold that triggers taxation.  In Malaysia, the variable tax for August has been lowered to 5.5 percent (compared with 6.5 percent in July), mirroring a drop in the relevant benchmark price for crude palm oil."]
[2017,"August","Bilateral trade promotion  – Malaysia / Philippines – palm oil & diesel:  Malaysia is targeting a 50 percent increase in its shipments of palm oil and palm oil-based products (including biodiesel) to the Philippines over the coming three years, government sources reported. According to bilateral talks, there is room for Philippine’s edible oil imports to increase, considering that the country is not self-sufficient in edible vegetable oil and that demand is steadily rising. Consultations also focused on possibilities of collaboration in the area of renewable energy, including biodiesel. In the Philippines, the planned increase in mandatory biodiesel blending (from 2 percent to 5 percent) has been postponed several times due to insufficient domestic supplies of coconut oil, the country’s main biodiesel feedstock. By contrast, Malaysia reportedly has ample capacity to export either palm oil-based biodiesel or crude palm oil to be used as biodiesel feedstock."]
[2017,"August","Bilateral trade promotion – Indonesia / Nigeria – palm oil:  According to official sources, Indonesian Government representatives initiated talks with Nigerian counterparts to revive shipments of Indonesian crude palm oil (CPO) to Nigeria. Reportedly, CPO trade between the two countries has fallen sharply over the last few years, as Nigeria introduced import restrictions to protect its foreign exchange market and stimulate domestic oil palm cultivation."]
[2017,"August","Bilateral trade promotion – Indonesia / Viet Nam – palm oil:  Recent efforts to promote business between Indonesia and Viet Nam are expected to result in increased supplies of Indonesian paper and palm oil to the Vietnamese market, according to local media reporting on recent bilateral talks."]
[2017,"August","International standards – IFFO – certified responsible fish oil and fishmeal:  The Marine Ingredients Organisation (IFFO), which represents the global fishmeal, fish oil and marine ingredients industry, revised its global standard for responsible supply of marine raw materials to maintain its relevance, credibility and accessibility to all current and prospective producers. Launched in 2009, the standard is implemented via a voluntary business-to-business certification programme aimed at guaranteeing that marine raw materials used for feed, food and nutraceutical purposes are responsibly sourced and manufactured."]
[2017,"August","International standards – Codex Alimentarius – edible oil standards:  The WTO/FAO Codex Alimentarius Commission issued its first standard for fish oil. The detailed standard, which applies to fish oil intended for human consumption, includes provisions for differentiating certain wild origin fish oils from their farmed counterparts. The Commission committed to monitoring the application of the new standard with respect to oil authenticity and traceability (in particular regarding fatty acid profiles) and to implications for trade. The Commission also deliberated on modifications to a number of existing or draft standards concerning oilcrops and derived products, viz.:  the standard for olive oils and olive pomace oils;  the standard for fat spreads and blended spreads;  the standards for both named and unspecified vegetable oils (concerning, specifically, groundnut oil, rice brain oil, high-oleic palm oil, virgin palm oil, crude palmkernel oil, sunflowerseed oil, flaxseed oil and selected fruit/treenut oils);  the Asian standards for tempe and non-fermented soybean products;  and the African standard for unrefined shea butter."]
[2017,"August","Sector development measures – Zimbabwe – oilseed production:  According to media reports, the Government of Zimbabwe is planning to launch – with support from the private sector – a loan facility to support the country’s oilseed farmers in a bid to stimulate domestic production, especially of soy. Funding would be directed primarily to irrigation infrastructure and farmer purchases of seeds, fertilizers and pesticides. Reportedly, the country’s oilseed producers’ association already identified farmers willing to sow a total of 60 000 hectares in the forthcoming season."]
[2017,"August","Sector development measures – European Union – soybean & protein crop supplies:  In June, thirteen EU member states signed the ‘European Soya Declaration’ (see also MPPU July’17). The declaration supports national and EU-wide initiatives to increase the production of legume crops, notably soybeans, as a contribution to the development of more sustainable and resilient agricultural systems in Europe. Signatories underlined the initiatives’ potential role in boosting the production of non-GM soya in Europe and in reducing the bloc’s dependence on imported soybean. Reacting to the intergovernmental initiative, industry associations representing the EU’s grain, oilseed and feed sector called for a coherent strategy to address the region’s protein deficit. In this regard, the associations pointed out that the EU’s latest proposals on biofuels – viz. the gradual phasing out of crop-based biofuels – could translate into falling EU oilcrop production (in particular rapeseed), hence reducing the availability of protein-rich meals. As to the objective of promoting sustainable and resilient production systems, industry representatives drew attention to progress made by European stakeholders and their overseas partners in responsible sourcing. Finally, with regard to non-GM soya, the industry maintained that the non-GM/GM status was not a criterion for sustainability and recommended that the choice for one or the other quality be left to the market. "]
[2017,"August","Sector development measures – Philippines / Indonesia – coconut palm:  Backed by the Government of Germany, the German Agency for International Cooperation (GIZ) joined forces with private consumer good firm P&G, chemical company BASF and agri-trade firm Cargill to enhance the production of coconut oil in the Philippines and Indonesia. The initiative is aimed at establishing certified sustainable coconut supply chains in the regions of Southern Mindanao and Southern Leyte (Philippines), and Amurang and North Sulawesi (Indonesia). Working with smallholder farmers, the project will focus on good agricultural practices, intercropping, enhanced farm management skills, and the creation of cooperatives. Selected farmers will also receive training on the Sustainable Agricultural Network (SAN) standards, with a view to facilitate application for Rainforest Alliance certification. While GIZ would focus on the provision of technical assistance, Cargill will be in charge of production, while P&G and BASF would secure access to the personal care, nutrition and health products market."]
[2017,"August","Industry news  – Europe – non-GM soya:  Global agri-trade company ADM expanded its capacity to crush non-GM soybeans in Germany. Reportedly, the move is meant to help the company meet rising customer demand as the European non-GM soybean market continues to expand and reflects ADM’s strategy to support farmers in their efforts to raise local soybean production (see also related item under ‘Sector development measures’ above)."]
[2017,"August","Industry news  – Brazil – transport disruptions:  According to industry sources, protests along Brazilian highway BR-163 have affected the flow of grains and oilseeds to the country’s northern ports. The highway links the state of Mato Grosso to Miritituba, the barge terminal connected with the north-Atlantic ports of Barcarena and Santarém. According to official sources, the recently opened northern export corridor was expected to absorb around one-fourth of Brazil’s aggregate maize and soybean production in 2017/18 (see MMPU July’17). Reportedly, the highway was blocked by local residents, merchants and farmers who asked for increased access to the region’s protected national forest areas."]
[2017,"August","Industry news – United States – biodiesel trade dispute:  The US biodiesel industry filed an additional allegation with the US Department of Commerce (DOC) claiming that ‘critical circumstances’ exist with respect to imports of low-cost biodiesel from Argentina. Based on an earlier petition, in April 2017, DOC launched preliminary investigations into the named imports for possible dumping and subsidization, with preliminary determinations due later this year (see MPPU June’17). In principle, the ‘critical circumstances’ provision allows for the imposition of countervailing measures prior to preliminary determinations, possibly offering relief to affected parties in the form of retroactive duties – a protection aimed at deterring exporters from boosting shipments before countervailing measures are introduced. Claiming that shipments of Argentine biodiesel into the United States surged since the industry filed its first petition, US biodiesel producers have taken the additional step of invoking the ‘critical circumstances’ clause.      "]
[2017,"August","Responsible palm oil – third party pressure:  Last year, social society groups urged global lending institutions and investors to play a more prominent role in persuading clients operating in the oil palm business to adopt sustainable production practices (see MPPU Apr.’16 & Feb.’17). Subsequently, international lending institution HSBC carried out a review of its loan policies for the palm oil sector, eventually adopting stricter standards to protect primary forests and peatland (see MPPU Apr.’17). According to recent media reports, in July 2017, the named bank triggered a probe into a client palm oil company over specific deforestation allegations. RSPO, the industry standards setting body to which both the bank and the concerned company are members, recently opened an investigation over claims that the concerned company was ready to clear 18 000 hectares of primary forest in Papua (Indonesia) to set up a new oil palm plantation. The move is meant to ensure that the RSPO’s sustainability standards are observed. Reportedly, RSPO advised the company to suspend all further development on the concerned concession pending the agency’s independent assessment. Meanwhile, following HSBC’s example, several other banks started moving to adopt stricter lending policies based on “no deforestation – no peat – no exploitation” commitments, the media reported."]
[2017,"August","Research & development – coconut palm:  The Indonesian Palmae Research Institute is preparing the commercial release of two new coconut varieties known under the names ‘Lampanah’ and ‘Bido’. Developed in collaboration with the provincial agricultural offices of Aceh and North Maluku, the former variety is characterized by superior fruit bearing, while the latter stands out for early maturity and slow stem growth, according to the agency."]
[2017,"September","EUROPEAN UNION / ARGENTINA – biodiesel tariff dispute:  Regarding the EU’s commitment to bring the bloc’s anti-dumping duties on biodiesel imports from Argentina into conformity with a recent WTO ruling (see MPPU Jan.&Aug.’17), the two parties agreed to extend the EU’s time limit for removing or altering the named tariffs until 28 September 2017 (as opposed to the originally agreed upon date of 10 August 2017). "]
[2017,"September","INDIA – farm support measures – Public procurement:  India’s National Federation of Agricultural Marketing Cooperatives (NAFED) – the agency responsible for the procurement of agricultural commodities under the country’s federal Price Support Scheme (PSS) – is preparing the launch of an electronic platform for countrywide procurement of oilseeds and pulses. By managing farm-gate purchases, storage and disposal operations through an efficient, transparent and competitive e-platform, NAFED expects to help growers obtain more remunerative prices, while also containing consumer prices."]
[2017,"September","INDIA – farm support measures – Price support:  The state Government of Madhya Pradesh announced the launch of a scheme to compensate farmers for distress sales at prices below the minimum support prices (MSP) that are set annually by the central Government. The scheme will initially apply to selected oilseeds and pulses, where physical procurement tends to be limited unlike for rice and wheat. The initiative comes on the back of a bumper harvest that caused crop prices to decline, triggering protests by farmers calling for loan waivers and more remunerative prices (see also MPPU July’17). Under the scheme, farmers will be compensated when crops are sold at less than the MSP. Such deficiency payments will be capped at a modal price, which is defined as the average market price observed over a two-month period in Madhya Pradesh and two other states."]
[2017,"September","INDIA – import policy:  In India, the world’s top buyer of vegetable oils, import duties on selected crude and refined oils have been raised to protect local farmers from low-priced imports and thereby encourage domestic oilseed production. Reportedly, the concurrence of copious imports with a bumper domestic crop led to stock surges and sharp price falls. The import levies for crude palm oil, refined palm oil and crude soybean oil – have been raised to, respectively, 15 percent, 25 percent and 17.5 percent (up from, respectively, 7.5, 15 and 12.5 percent). By widening the import duty differential between crude and refined palm oil – from 7.5 percent to 10 percent – the Government also aims to assist domestic oil processors, who find it increasingly difficult to compete with imports of low-priced refined oils.      "]
[2017,"September","TURKEY – GMO news:  Turkey’s Biosafety Board has approved the importation of three genetically modified soybean varieties and their products for feed use, raising the total number of approved GM soy events to ten. For another two GM varieties approval remains pending.     "]
[2017,"September","UNITED STATES – biodiesel policy –  Imports – countervailing & anti-dumping duties:  The U.S. Department of Commerce (DOC) announced affirmative preliminary determinations in the countervailing duty investigations related to Indonesian and Argentine exports of biodiesel to the United States. DOC claimed that Argentine and Indonesian exporters received subsidies of, respectively, 50–64 percent and 41–68 percent. The department also determined that ‘critical circumstances’ exist in both cases, which allows for retroactive collection of duties (see also MPPU Aug.’17). Final duty determinations are due on 7 November 2017. While DOC finalizes its investigations, biodiesel importers will be required to pay cash deposits on purchases from Argentina and Indonesia based on the indicated subsidization rates, going back to May 2017. As to the companion anti-dumping investigations, preliminary determinations are expected in October 2017. DOC’s initial notice has led to temporary spikes in US and international soybean oil prices. Evidently, market participants are concerned that, in the United States, demand for domestically produced biodiesel – which is mainly produced from soybean oil – could increase once retaliatory import duties are imposed. Argentina would be particularly affected by the envisaged trade policy change:  in 2016, U.S.-bound exports accounted for approximately 90 percent of Argentina’s overall biodiesel sales, with imports from Argentina representing two-thirds of the United States’ total biodiesel purchases. Reportedly, Argentina has offered to collaborate with the U.S. DOC during its final duty determination. The two parties may also consider the introduction of tariff rate quotas, according to press reports."]
[2017,"September","UNITED STATES – biodiesel policy – Local blending mandate:  Minnesota – the first state in the nation to mandate biodiesel use back in 2005 – is set to raise its biodiesel standard from 10 to 20 percent in May next year. Accordingly, only diesel containing 20 percent biodiesel may be sold between May and October, when fuel stations will switch back to 5 percent, as biodiesel turns from fluid to gel under colder temperatures. The higher blending mandate is meant to (i) help preserve and protect Minnesota’s air and water quality, (i) reduce the state’s reliance on fossil fuels, and (iii) support demand for locally grown biodiesel feedstock, notably soybeans. Fuel producers and the trucking industry expressed concern about the new measure, stating that the infrastructure required to handle the higher blends was not yet available.  "]
[2017,"September","UNITED STATES – health regulations:  Responding to a petition filed by a large agribusiness and food company, the U.S. Food and Drug Administration decided to allow food manufacturers and restaurants to make qualified health claims linking soybean oil to a reduced risk of coronary heart disease. The decision is based on ‘supportive but not conclusive evidence’ that eating soybean oil – which contains unsaturated fatty acids – may provide heart health benefits, provided soybean oil is to replace (or not to increase) saturated fat intake and does not raise daily caloric intake.      "]
[2017,"September","Palm oil trade policies – Intergovernmental export promotion:  Under the framework of CPOPC, the Council of Palm Oil Producing Countries set up by Malaysia and Indonesia to foster collaboration on palm oil, the two founding countries have agreed to (i) jointly explore the possibility of supplying China, India and other countries with palm oil for their nascent biodiesel industries, and (ii) conduct joint campaigns in key import markets to publicize palm oil’s environmental credentials. Moreover, the CPOPC Secretariat was tasked to invite other palm oil producing countries to join the Council."]
[2017,"September","Palm oil trade policies – Variable export tax:  In September 2017, Indonesia’s sliding export tax on crude palm oil will stay at zero (for the fifth consecutive month), as the commodity’s reference price remained below the threshold that triggers taxation. In Malaysia, the variable tax for September remains unchanged at 5.5 percent, as the relevant benchmark price remained virtually unchanged compared with the previous month’s level.    "]
[2017,"September","Palm oil trade policies – National certification programmes – Malaysia:  Government officials confirmed that certification through the Malaysian Sustainable Palm Oil (MSPO) scheme will become mandatory for all palm oil growers by end 2019. The MSPO standard was developed to promote the adoption of best practices on sustainability throughout the supply chain, while conforming to domestic laws and regulations and taking into account the specific needs of local producers. To date about 244 600 hectares of oil palm – or 4.1 percent of the country’s total area under oil palm – have undergone voluntarily certification, involving mostly large estates rather than small growers. Recognizing that small producers – who contribute about 40 percent of the country’s palm oil production – struggle to meet the costs of certification, the government announced that independent and organized smallholders will receive financial incentives. Reportedly, the Government decided to set aside MYR 130 million (USD 31 million) to support some 650 000 small growers cultivating around two million hectares of oil palm. Furthermore, the Government renewed its commitment to promote MSPO overseas to ensure the standard is accepted in international markets. (See also MPPU Apr.’17 on efforts to accelerate MSPO's domestic adoption and international recognition.)"]
[2017,"September","Palm oil trade policies – National certification programmes – Indonesia:  To date 1.9 million hectares of oil palm plantations – i.e. 17 percent of the country’s total area under oil palm cultivation – have been certified under the Indonesia Sustainable Palm Oil (ISPO) standard. Launched with the support of the Government in 2011 and implemented on a mandatory basis since 2015, ISPO was designed to guarantee the adoption of comprehensive environmental and social standards and ensure compliance of plantations with national rules and regulations. (See also MPPU Apr.’17 on efforts to accelerate ISPO's domestic adoption and international recognition.)\n"]
[2017,"September","Bilateral trade arrangements  –  China / Argentina – soybean oil:  As part of comprehensive talks on balancing trade between the two countries, China agreed to resume imports of soybean oil from Argentina. China’s state-owned grain corporation Sinograin confirmed it was ready to purchase soybean oil from the world’s top supplier. China started restricting imports from Argentina on phytosanitary grounds in 2010, when annual purchases dropped from 2 million tonnes to less than 500 000 tonnes."]
[2017,"September","Bilateral trade arrangements – Indonesia / Russian Federation – palm oil:  Government officials informed that a preliminary deal to barter military jets for commodities – including palm oil and copra – has been signed between an Indonesian and a Russian state trading company. Details about the quantities of produce to be shipped by Indonesia were not made available."]
[2017,"September","Sector development measures – Brazil – transport infrastructure:  Brazil’s Transport Ministry has allocated the sum of BRL 128.5 million (USD 41.2 million) for paving 65 km of highway BR-163, i.e. the last unpaved stretch of the key artery that links Mato Grosso state – the country’s Centre-west grain hub – to Brazil’s newly opened ports on the north-Atlantic coast. Based on government estimates, upon the works’ completion, Brazil’s northern export corridor (or ‘Arco Norte’) would absorb around one-fourth of Brazil’s aggregate maize and soybean production (see MPPU July’17). Industry sources, on the other hand, pointed to the need for additional investments in the region’s infrastructure. With northbound shipments from Mato Grosso depending on a single highway, the likelihood of temporary disruptions remains high, private sources opined (see also MPPU Aug.’17). "]
[2017,"September","Sector development measures – Zimbabwe – soybean cultivation:  For the 2017/18 season, the Government of Zimbabwe fixed the price for soybeans delivered to the state-owned Grain Marketing Board at USD 610 per tonne, i.e. 22 percent above the prevailing price of USD 500. The measure is meant to stimulate domestic soybean production, thus helping to reduce the country’s dependence on imported edible oil."]
[2017,"September","Sector development measures – Indonesia – oil palm replanting:  The Government of Indonesia issued an oil palm replanting plan involving 4.7 million hectares of plantation. The initiative is aimed at boosting the crop’s productivity. Reportedly, average yields dropped to 2–3 tonnes of palm oil per hectare due to the deteriorating age structure of the country’s oil palms."]
[2017,"September","Sector development measures – Vanuatu – coconut palm replanting:  The Government of Vanuatu pledged to support the planting of 1 million coconut trees by 2026. Reportedly, apart from growing old, existing palms have withered because of cyclones. Unproductive trees will be felled and used as timber.  "]
[2017,"September","Industry initiatives – Biodiesel feedstock – the Philippines:  In the Philippines, the national federation of industries urged the Government to review the product specification in the country’s Biofuels Act with a view to include palm oil as a biodiesel feedstock in addition to coconut oil. The private sector views palm oil as an economical alternative to coconut oil. Reportedly, chronic shortages in domestic coconut oil supplies relative to demand have driven up coconut oil prices – hampering growth in biodiesel production and preempting the planned introduction of higher blending mandates (see MPPU Oct.’15 & Aug.’17). Low-priced palm oil, by contrast, is said to be widely available, and permission to use that oil as biodiesel feedstock would allow to channel more coconut oil towards the production of high-value added products for export."]
[2017,"September","Industry initiatives  – Non-GM soybeans – Brazil:  An alliance for the promotion of conventional, non-GM soybeans – named Soybean-Free Institute – has been launched in the state of Mato Grosso, where most of the country’s non-GM soy production for niche markets in Europe and Asia is located (see also MPPU June’17). Members of the newly created institute include growers, seed producers, suppliers of chemical inputs, food manufacturers, traders and civil society groups."]
[2017,"September","Industry initiatives  –  Palm oil-free certification:  An independent certification scheme, the International Palm Oil Free Certification Accreditation Programme (POFCAP), has been launched to allow interested food makers to demonstrate that their products were manufactured without using palm oil or palm oil derivatives. The new scheme was developed to respond to growing consumer demand for transparency over the use of palm oil in processed foods. Reportedly, POFCAP has been approved by regulators in Australia and the UK, while applications are still pending in several other countries. POFCAP bars companies from using language implying that POFCAP recommends a given product over competing products."]
[2017,"September","Industry initiatives  – Indonesia / Japan – palmkernel shell:  Indonesia’s oil palm industry is looking into the possibility of expanding sales of palmkernel shell to Japan. Reportedly, underpinned by Government policies calling for a higher renewable energy portion in the country’s energy mix, Japan’s import demand for palmkernel shell is growing as biomass power plants use the product  as bioenergy feedstock."]
[2017,"September","Olive oil – quality control:  ‘Oleum’, a four-year project supported by the European Union’s Horizon 2020 Research and Innovation Programme, entered its second year of implementation. The initiative is aimed at better guaranteeing olive oil quality and authenticity by empowering detection and fostering prevention of olive oil fraud. Reportedly, the consortium of 20 international partners has identified knowledge gaps in four areas that the project will address: legislation and regulation; analysis; harmonization and coordination; and consumer and market confidence.    "]
[2017,"October","AFRICA – trade and tax policies – Malawi – VAT policy:  In Malawi, vegetable and animal oils/fats and their derived products have been exempted from paying value added tax, effective 1 July 2017. As a result, refined vegetable oils will no longer attract VAT at 16.5 percent. Aimed at protecting domestic refiners from the inflow of cooking oils that do not undergo value addition locally, the measure is expected to help the indigenous edible oil industry grow and domestic oilseed production expand. Reportedly, analogous measures are in place in Zimbabwe, the United Republic of Tanzania, Mozambique and South Africa, while, in Zambia, the edible oil industry repeatedly called on the local government to implement a similar policy (see also MPPU Aug.’13)."]
[2017,"October","AFRICA – trade and tax policies – Zimbabwe – import policy:  According to media reports, the Government of Zimbabwe has lifted a two-and-a-half month old ban on soybean imports, in an effort to ensure adequate supplies of cooking oil in the country.        "]
[2017,"October","BRAZIL – biodiesel policy:  According to government sources, mandatory blending of biodiesel into regular transport diesel will be raised from 8 percent to 10 percent towards the end of the current year – i.e. more than one year earlier than originally planned (see MPPU Apr.’16). Officials from Brazil’s Mines and Energy Ministry expect the National Energy Policy Council to approve the shift to the higher blending mandate by December 2017, in line with efforts to lift the country’s biofuel output, reduce imports of mineral oil products, and meet national GHG reduction commitments. Moreover, the Government is expected to announce details about ‘RenovaBio’, a package of incentives and regulatory measures aimed at (i) raising domestic biofuel production and consumption, (ii) attracting investments, and (iii) fostering competition within the sector."]
[2017,"October","CANADA – health policy:  Following up on a proposal issued last year (see MPPU Dec.’16), the Government of Canada is now set to permanently ban partially hydrogenated oils – the main source of industrially produced trans fatty acids (or trans fats). The ban will apply to all foods sold in the country, including imported products and foods prepared and served in restaurants. By reducing trans fats in the food supply chain to the lowest level possible, the Government intends to reduce Canadians’ risk of heart diseases. In order to allow the food industry sufficient time to find suitable alternatives, the ban will only come into force in September 2018. Hydrogenated vegetable oils are widely used in the production of pastries, baked goods and packaged goods to extend shelf life. Canada’s ban is consistent with global efforts to eliminate artificial trans fats in foods, including those taken in the United States (see MPPU July’15)."]
[2017,"October","CHINA – food import regulations:  China’s Food Standards Agency granted a two-year transitional period – until 30 September 2019 – for the implementation of food import regulations that were announced back in April 2016 (see MPPU June’16). The new regulations require importers of certain products – including bulk vegetable oil – to review relevant health certificates and conduct on-site inspections of foreign establishments from which products are sourced. The transitional period has been accorded to allow importers/exporters sufficient time to comply with the new requirement."]
[2017,"October","CHINA – farmer support payments:  According to private sources, the subsidy granted to soybean producers in Heilongjiang Province (China’s top soybean growing region) has been set at CNY 118.58 per mu (USD 268 per ha) for the 2016/17 season, i.e. for the crop harvested in the fall of last year. The payment, which is part of the target price subsidy programme that was operated on a pilot basis from 2014 to 2016 (see MPPU Nov.’16 & June’17), is supposed to reach farmers by 15 September 2017. For comparison, in 2015/16, the subsidy amounted to CNY 150 per mu (USD 339 per hectare). From 2017/18, the target price system will be discontinued and producer payments will be de-coupled from market prices (see also MPPU July’17). Two types of producers will be eligible to receive payments:  (i) farmers who rotate maize with other crops – primarily soybeans, but also tubers and minor grains, beans and other oilseeds; and (ii) farmers that keep land idle to rehabilitate degraded farmland and conserve moisture in marginal agricultural areas. Support payments are meant to ensure that farmer incomes will not suffer from idling land or rotating crops that earn lower returns. Reportedly, the compensation for idling land that could bear two crops a year will amount to CNY 800 per mu, whereas CNY 500 per mu will be granted for single-season fallow (respectively USD 1 810 and 1 132 per ha). Details on subsidy levels for crop rotation are not yet available."]
[2017,"October","CHINA – soybean auctions:  Sales of soybeans from state reserves were resumed in September 2017. Reportedly, out of 300 000 tonnes offered, about 215 500 tonnes have been sold, achieving an average price of CNY 3 140 per tonne (USD 474). The soybeans on offer were from old crops (2013 and older), given that, in 2014, the Government changed its agricultural support policies, discontinuing soybean procurement operations. "]
[2017,"October","EUROPEAN UNION – biodiesel anti-dumping duties:  Following consultations with Member States, the European Commission decided to reduce the bloc’s custom duties on biodiesel imports from Argentina, effective 19 September 2017 (see also MPPU Sep.’17). To conform with a recent WTO ruling, the EU lowered its anti-dumping duties to between 4.5 percent and 8.1 percent – as against the 22–25.7 percent range in place since May 2013. The EU’s decision has come at a time when the United States chose to implement its own measures to restrict biodiesel imports from Argentina (see MPPU Sep.’17). Accordingly, Argentina’s export-oriented biodiesel industry welcomed the possibility to resume shipments to the EU market. By contrast, farmer organizations and biodiesel producers in the EU (where biodiesel is mostly produced from locally grown rapeseed crops) criticized the reduction in tariffs and threatened to appeal against the European Commission’s decision. Meanwhile, the EU’s anti-dumping tariffs on Indonesian biodiesel, which were also introduced in 2013, will remain in place, considering that they are subject of a still pending, separate case at the WTO (see MPPU Nov.’16).  "]
[2017,"October","INDIA – agricultural policies – Coconut production support:  The Government of Kerala (the country’s second largest coconut growing state) urged the central government Commission for Agricultural Costs and Prices to raise the minimum support price (MSP) of copra from INR 67 700 per tonne to INR 97 250 per tonne (respectively USD 1 035 and 1 487). Reportedly, the Agricultural Department is also considering to introduce a MSP for raw coconut amounting to INR 29 500 per tonne (USD 451). Currently, there is no MSP for the procurement of raw coconut."]
[2017,"October","INDIA – agricultural policies – Market regulation:  In Gujarat state, public procurement of groundnuts is scheduled to begin on 25 October, government officials informed. Local coconut producer cooperatives (designated by the state-level procurement agencies) will be in charge of the operations. Reportedly, unshelled groundnut will be procured at a rate of INR 45 000 per tonne, as against the prevailing market price of INR 31 250 per tonne (respectively USD 688 and 478). Similarly, in Rajasthan state, public procurement of soybeans and groundnuts commenced in October. Reportedly, 29 procurement centers are operational for groundnuts and another 25 for soybeans. To facilitate operations, farmers can submit applications online and payments will be made directly into their account, Government officials informed. The support prices for soybeans and unshelled groundnuts will be, respectively, INR 30 500 and INR 44 500 per tonne (respectively, USD 466 and 680)."]
[2017,"October","INDIA – GMO policy:  Indian ministry officials informed that the Government’s final decision with respect to the commercial release of GM oilseeds – notably of a locally developed mustardseed variety – remained pending (see also MPPU Sep.’16). Reportedly, the Government requires more time to examine various expert studies, including (i) new information submitted by GEAC, the ministerial Genetic Engineering Appraisal Committee, and (ii) a report prepared by a parliamentary committee, which flagged alleged gaps in the Government’s evaluation process. In the meantime, a note released by India’s National Academy of Agricultural Sciences underlined the importance of GM oilseed varieties for production and farm income growth in the country.        "]
[2017,"October","MALAYSIA – mandatory palm oil certification:  Regarding the government’s pledge to support palm oil producers in conforming to the national standard for sustainable palm oil (see MPPU Sep.’17), ministry officials informed that audit costs will be subsidized at the following rates:  100 percent for small oil palm growers, i.e. organized or independent smallholders cultivating less than 40.46 hectares; 70 percent for estates with planted area between 40.5 and 1 000 hectares; and  30 percent for estates above 1 001 hectares as well as processing facilities (including mills, refineries and crushers). "]
[2017,"October","SRI LANKA – market regulation:  To check recent surges in domestic prices, coconut stocks owned by Sri Lanka’s State Plantation Corporation will be released into the market at a price of LKR 60 per nut (USD 0.39), the country’s Coconut Cultivation Board informed. Reportedly, also freshly procured coconuts will be distributed. According to a market survey, in September, the price for a single coconut climbed to LKR 100 (USD 0.65)."]
[2017,"October","UNITED ARAB EMIRATES – biofuel policy:  The Emirates National Oil Company (ENOC) announced the launch of a biodiesel blend destined for the country’s commercial and industrial segment. The fuel, which contains 5 percent biodiesel produced from vegetable oil, used cooking oil or animal fat, is expected to help reduce the country’s GHG emissions. The measure is in line with the government’s Energy Plan leading up to the year 2050, which calls for an energy mix combining renewable, nuclear and clean energy sources. Reportedly, the new blend is suitable for use in new and existing trucks as well as heavy construction equipment, without need to upgrade engines and fuel storage facilities."]
[2017,"October","UNITED KINGDOM – biofuels policy:  The U.K. Government published its long-term strategy for increasing the supply and sustainability of renewable transport fuels in the country. The new policy package is aimed at lowering the GHG intensity of transport fuels, while providing a stable policy environment for investments into renewable low carbon fuels. From April 2018, the share of renewable fuels in total fuel consumption will be lifted to 7.25 percent, further increasing to 9.75 percent in 2020 and 12.4 percent in 2032. The contribution crop-based biofuels can make towards the above obligations will be lowered to 4 percent in 2020, steadily declining to 2 percent in 2032 – a provision that is expected to place a significant demand on waste biofuel feedstock, in particular used cooking oil. Furthermore, a sub-target (as well as special financial incentives) will be introduced for so-called ‘development fuels’, i.e. high-blend fuels suitable for meeting the long-term goal of decarbonizing the heavy goods vehicle and aviation sectors. Industry representatives claimed that the cap on crop-based fuels was too stringent and unnecessarily limited the market for biofuels with proven GHG reduction potential. Concerns were also expressed that the new policy reduces the U.K.’s competitiveness vis-à-vis other EU member states, where higher caps for crop-based fuels will be in place (see MPPU Dec.’16).                      "]
[2017,"October","UNITED STATES – biofuel policy:  The U.S. Environmental Protection Agency (EPA) is considering to reduce the mandatory renewable fuel consumption targets for 2018 and 2019 that it proposed earlier this year (see MPPU Aug.’17) and is seeking public comments in this regard. Reportedly, EPA decided to revisit its original proposal as new data on production, imports and costs of biodiesel have become available. Allegedly, the price of biodiesel to blenders as well as the price of biodiesel blends to consumers has increased following the expiration of the biodiesel tax credit in December 2016 (see also MPPU June’17). Moreover, prices may continue to rise as a result of the recent preliminary determination of countervailing duties on imports of biodiesel from Argentina and Indonesia (see MPPU Sep.’17), said EPA. Therefore, the agency is concerned that the originally proposed targets may lead to inadequate domestic supplies of biofuel to consumers, and is hence evaluating the possibility of setting lower targets. The domestic biodiesel industry questioned EPA’s rationale, stressing that the country’s biodiesel production capacity was sufficient to meet the original targets. Recently, the American Soybean Association even urged the agency to raise the target for biomass-based diesel, arguing that biodiesel production creates a value-added market for the country’s abundant soybean oil supplies and that the country’s growing soybean production could support higher demand for biodiesel without leading to price increases."]
[2017,"October","Variable palm oil export tax – Indonesia, Malaysia:  In October 2017, Indonesia’s sliding export tax on crude palm oil will stay at zero (for the sixth consecutive month), as the commodity’s reference price remained below the threshold that triggers taxation. In Malaysia, the variable tax for October will be raised to 6 percent (up from 5.5 percent in the previous month), reflecting an increase in the relevant benchmark price."]
[2017,"October","Bilateral trade – Canada / European Union – all-inclusive trade agreement:  The Comprehensive Economic and Trade Agreement (CETA) between the EU and Canada has entered into force provisionally on 21 September 2017. Concerning oilseeds, the agreement’s implementation entails the elimination – from day one – of the EU’s tariffs on Canadian rapeseed oil imports (see MPPU Dec.’16). CETA’s full and definitive application remains contingent upon ratification by all EU Member State parliaments."]
[2017,"October","Bilateral cooperation & trade – China / Ukraine – sunflowerseed cake:  The standard setting bodies of China and Ukraine agreed on a sanitary and biosafety protocol that will govern future exports of Ukrainian sunflowerseed cake to China."]
[2017,"October","Bilateral cooperation & trade – Indonesia / Uzbekistan – coconut, soybean, palm oil:  Indonesia and Uzbekistan agreed to enhance bilateral cooperation in agriculture and fisheries. With regard to oilcrops, Indonesia views Uzbekistan as a potential export market for palm oil and coconut, while Uzbekistan is interested in Indonesia’s experience in soybean cultivation."]
[2017,"October","Bilateral cooperation – Philippines / Malaysia – oil palm:  Government officials of the two countries discussed the possibility of setting up joint ventures for oil palm plantations in the Philippines to cater to the country’s rising demand for vegetable oil for both food and industrial uses. Reportedly, in the long term, the joint development of up to 80 000 hectares of oil palm plantations would be considered."]
[2017,"October","Pesticide regulation – Canada – matador:  Citing safety concerns, Canada’s health authorities proposed a complete phase-out of an insecticide known by the commercial name ‘matador’. The pesticide, which is widely used in rapeseed cultivation, controls pests such as flea beetles, cutworms, bertha armyworms and diamondback moths. Farmers have been invited to share their comments about the envisaged measure with Canada’s Pest Management Regulatory Agency. According to industry representatives, the proposed ban would greatly harm rapeseed growers and the industry as a whole. Observers also pointed out that Canada ought to align its regulations with other countries such as the United States, due to the large amount of rapeseeds that is exported."]
[2017,"October","Pesticide regulation – European Union – glyphosate:  The European Commission informed that the Member States vote on whether or not to extend the license for glyphosate-based herbicides has been postponed to later this year, adding that a qualified majority will be needed for the proposed 10-year renewal to go ahead (see also MPPU Apr. & June ’17). The 18-month approval granted in 2016 is due to expire in December 2017. The Commission’s proposal for a 10-year-extension (instead of the customary 15 years) includes a number of specific provisions that Member States would need to follow when considering applications for glyphosate-based products. Meanwhile, one Member State proposed to consider phasing out glyphosate over a five- or seven-year period. In general, the debate about human health risks associated with the chemical’s use remains controversial, in both Europe and elsewhere. In Canada and the United States, recent reviews conducted by regulatory authorities claim that such risks are not significant (see MPPU Nov.’16 & June’17). At the international level, there is also the need to align regulations between trade partners in order to prevent diverging rules from causing trade disruptions. "]
[2017,"October","Pesticide regulation – United States – dicamba:  Allegedly, in the United States, more than one million hectares of soybeans and other crops vulnerable to the herbicide dicamba (i.e. varieties that were not engineered to resist dicamba) have been damaged this year as a result of sprayings on neighbouring fields. Experts have linked the damage to the herbicide’s tendency to vaporize and drift across fields, triggering temporary bans of the controversial herbicide in Arkansas and Missouri. Nation-wide use of the chemical had been approved in November last year by the U.S. Environmental Protection Agency (EPA) – for a limited period of two years and provided that special safety measures were applied (see MPPU Dec.’16). Now, to address the problems encountered and ensure vulnerable plants are adequately protected, EPA is evaluating the following remedial actions: (i) introducing tighter restrictions on when and how to spray dicamba; (ii) requiring enhanced training for users of the herbicide; and (iii) reclassifying the product to prevent the general public from buying it. If implemented, such restrictions could affect farmers’ seed purchases:  soybean growers might stay away from buying dicamba-resistant varieties – which, this year, accounted for almost one-fourth of the United States’ total soybean area."]
[2017,"October","Sector development measures –  Ghana – palm oil:  As part of a newly launched programme that offers free education at senior high school level, the Ghanaian Government contracted the country’s association of small-scale palm oil producers to supply palm oil (for cooking oil use) to concerned schools nationwide. Reportedly, farmers are preparing to expand oil palm cultivation to meet the anticipated increase in palm oil demand.           "]
[2017,"October","Sector development measures – India – coconut:  India’s Coconut Development Board announced that it will support 30 projects with an aggregate value of INR 313.4 million (USD 4.8 million). The board’s own financial contribution will amount to INR 63.9 million (USD 0.98 million). The approved projects will be implemented in five different states and comprise 8 research projects and 22 projects on processing and product diversification."]
[2017,"October","Sector development measures – India – coconut:  The Government of Kerala announced a 10-year plan to support the development of the state’s problem-stricken coconut sector. Growing farming costs, low productivity levels and stagnating incomes have been identified as main difficulties afflicting the sector. Complementing Kerala’s efforts, the Federal Government is planning to set up a committee to coordinate coconut related activities of central and state-level agencies, including the Agriculture Department, Kerala Agricultural University, the Central Plantation Crops Research Institute, the Coconut Development Board and Kerafed (the apex co-operative federation of coconut farmers in Kerala and India’s largest producer of coconut oil)."]
[2017,"October","Sector development measures – Philippines – coconut:  The Government of the Philippines has allocated PHP 1.4 billion (USD 27.2 million) to the country’s Coconut Authority for the year 2018, matching the current year’s level. According to the agency, the bulk of the resources will be used for replanting coconut trees nationwide. Projects on fertilization, R&D and diversification into high-value coconut products will also be supported. With regard to plantings, the agency’s target is to support the planting of at least 10 million palms in 2017, 15 million palms in 2018, and 20 million palms yearly starting in 2019."]
[2017,"October","Sector development measures – Sri Lanka – coconut:  The Government of Sri Lanka set aside LKR 200 million (USD 1.3 million) for the development of coconut production in the country’s Northern and Eastern provinces. Public interventions will concentrate on:  (i) identifying suitable land; (ii) the establishment of nurseries and distribution of plantlings; (iii) setting up model coconut gardens; and (iv) infrastructure development."]
[2017,"October","Sector development measures – Russian Federation – fish products:  As part of its newly issued long-term development strategy for the country’s fishing industry, the Government of the Russian Federation intends to raise domestic production of fishmeal, fishoil and fish feed from pelagic species, with a view to support growth in the nation’s aquaculture industry."]
[2017,"October","Sector development measures – Zambia – palm oil:  According to press reports, the Zambian Government has provided equity finance to a local palm oil venture in a bid to help reduce the country’s dependence on imports of crude palm oil and cooking oils. Reportedly, the public-private partnership will focus on the development of oil palm plantations, including out-grower schemes for local farmers and the establishment of a palm oil mill. By supporting the production and processing of crude palm oil, the project – once it reaches full capacity – is expected to help substitute 70 000 tonnes of cooking oil imported into Zambia."]
[2017,"October","Research & Development – Ghana – groundnut variety:  Ghana’s Crop Research Institute has released a new aflatoxin-resistant groundnut variety – an achievement that could lead to a revival of Ghana’s groundnut exports, according to the institute’s scientists. In general, high levels of aflatoxin contamination constitute a major challenge for groundnut producers across Africa and Asia, as they bar their products from entering international markets."]
[2017,"October","Research & Development – India – mustardseed cultivation:  Reportedly, ‘System Root Intensification’ (SRI), a cultivation method popular in rice farming, has been successfully tested on mustardseed and other species of the brassica family in five states in India. Allegedly, the technique, which involves planting of saplings instead of sowing seeds, allows to significantly increase yields. The method entails:  (i) transplanting 8–15 days old saplings at relatively larger distance; (ii) preferring natural compost to synthetic fertilizer; (iii) early and regular weeding; and (iv) careful water management. The labour intensive method is said to be suitable for farmers with small land holdings and spare labour force. Farmers are advised to use conventional (non-GM) long-duration varieties developed by the Indian Agricultural Research Institute."]
[2017,"October","Research & Development – Soybean-oil uses:  Global rubber and tire company Goodyear has developed a technology that allows substituting soybean oil for petroleum-based oils in the production of rubber compounds for tires. The company regards soybean oil as a naturally derived, cost-effective, carbon-neutral and renewable raw material. Reportedly, the incorporation of soybean oil allows to enhance the performance of tires, raise manufacturing efficiency, and reduce energy consumption. The new technology has been developed with support from the U.S. United Soybean Board (a federal programme that collects funds from soybean growers and channels them into promotion and research activities of general interest).   "]
[2017,"October","Research & Development –  Camelina oil yield:  The U.S. Department of Energy has approved a USD 10 million grant to explore ways to raise the oil content of camelina seed using genetic sequencing and modification techniques. The project will be led by Michigan State University. High oil-yielding varieties are expected to attract the interest of U.S. farmers, as camelina can be grown on agriculturally marginal lands, requires limited fertilizer and water, and offers good resistance to pest and disease. Camelina oil has been successfully blended into civil and military aviation fuel. Furthermore, the oil is used as a feed ingredient in aquaculture and lends itself for a variety of pharmaceutical, cosmetic and industrial uses (see also MPPU June’17).       "]
[2017,"October","Industry initiatives – Australia – olive oil:  Australia’s olive oil industry is exploring a provenance-branding initiative to better market the country’s diverse extra virgin olive oils. Currently, Australia’s olive oil market is dominated by high-volume blended oils imported from Europe. Reportedly, 85 percent of Australia’s extra virgin oil olive production come from olives grown in a single grove. Considering that location can impact an oil’s flavour and chemical profile, the new initiative is aimed at setting up an appellation system, which would (i) enable consumers to associate an oil with a specific region and grower, and (ii) allow producers to achieve better prices."]
[2017,"October","Industry initiatives – China – overseas acquisitions:  A privately owned Chinese company announced plans to acquire more agri-business firms in Brazil, after it completed the acquisition of two such firms last year. Reportedly, last year’s takeovers allowed the Chinese company to secure a combined seven-million-tonnes output of Brazilian soybean and maize, a figure the company intends to raise to 10 million in 2018 and, possibly, 30 million in the following years. In parallel with comparable acquisitions made by Chinese state-owned firms in recent years (see MPPU Nov.’14 & Feb’16), these investments are aimed at raising the country’s presence in international grain and oilseeds markets at a time when China’s dependence on imports to meet domestic demand has climbed to unprecedented levels."]
[2017,"October","Industry initiatives – United States – GMO labelling:  The U.S. Grocery Manufacturers Association (GMA) responded to USDA’s call for public comments on the GMO labelling legislation that was signed into law last year (see MPPU Aug.’16). The association recommended that the new law be also applied to highly refined oils and sweeteners derived from GM-crops – even if GM material is not always detectable via analytical tests in refined products. According to GMA, given that the bulk of US maize, soy and sugarbeet crops are genetically modified, the named ingredients should be routinely labelled. Asserting that the new labelling requirements should be considered as a marketing standard rather than a food safety standard, GMA explained that its recommendation stemmed from the industry’s commitment to transparency. Furthermore, GMA invited USDA to apply the presumption that any food derived from crops that are overwhelmingly bioengineered in the country where they are grown is a GM food – unless a manufacturer can prove otherwise. Such measures would greatly simplify compliance with the new standard, the association said. "]
[2017,"October","Palm oil – sustainable production/trade – India:  The international NGO Solidaridad Network, in association with India’s Solvent Extractors’ Association (the country’s national vegetable oil production and trade association) has launched the ‘Indian Palm Oil Sustainability’ framework, IPOS. Reportedly, the initiative is backed by the Indian Government and enjoys the support of the Indian Institute of Oil Palm Research (IIOPR). The project’s objective is to stimulate domestic production of and trade in sustainable palm oil. Developed in consultation with key stakeholders across the country, the IPOS framework consists of a set of environmental and social standards applicable to Indian conditions. IPOS will be tasked to:  (i) promote the adoption of sustainable practices across the supply chain; (ii) assist stakeholders in achieving compliance with applicable national/international regulations and voluntary codes; and (iii) foster harmonization with other related initiatives in Asia. The programme will be governed by a multi-stakeholder national platform."]
[2017,"October","Palm oil – responsible sourcing – Malaysia, Singapore:  While many palm oil buyers are aware of the importance of using sustainably produced palm oil, only a few businesses are engaged in helping to reduce deforestation and other adverse practices found in oil palm, claimed the World Wildlife Fund (WWF). According to a survey of palm oil-buying food and restaurant chains conducted by WWF in Malaysia and Singapore, the majority of surveyed companies were not transparent about their palm oil use, and several businesses had taken no action to support the use of sustainable palm oil – such as buying produce certified by RSPO (the Roundtable on Sustainable Palm Oil). At the same time, a number of companies went beyond the RSPO criteria, committing to eliminate the destruction of any kind of forest from their supply chains. Reportedly, companies cited the cost of sourcing certified palm oil as well as a lack of consumer awareness and demand for certified produce as reasons for not buying certified palm oil. WWF also reported that non-disclosure and lack of action seems to be higher at the regional level than among global brands. WWF is conducting buyers’ surveys since 2009, with the objective of encouraging companies to move gradually towards more responsible sourcing practices (see MPPU Dec.’09)."]
[2017,"October","Palm oil – responsible sourcing – India:  The WWF released a report that highlights the critical role Indian companies could play in promoting sustainable production practices in oil palm growing countries. India is the world’s largest consumer of palm oil, with virtually all of it imported from Southeast Asia. While awareness levels on sustainability issues is rising, the Indian industry’s uptake of certified sustainable palm oil remains limited, according to WWF’s report. The organization recommends a set of approaches to promote responsible sourcing, drawing on constructive industry engagement. Proposed solutions include:  (i) systematic screening of palm oil suppliers; (ii) fostering industry collaboration through an industry forum across the value chain; (iii) tariff-based policy measures; (iv) promoting sustainability frameworks such as RSPO; and (v) calling for deforestation-free portfolios by lending institutions."]
[2017,"October","Palm oil – responsible sourcing – company news:  According to the latest sustainability report published by food and drinks company PepsiCo, the global business firm doubled the volume of its palm oil that is sustainably sourced, from 8 percent in 2015 to 16 percent last year – which, however, compares to a target of delivering 100 percent sustainably sourced palm oil by 2020. The company also conceded that none of its responsibly sourced raw materials have been verified as sustainable by a third party – despite the company’s target of securing 100 per cent third-party verification by 2020."]
[2017,"October","Palm oil – sustainable production – company-initiated peatland restoration:  According to media reports, a large oil palm company stated that it would endeavor to rehabilitate peatland it recently developed in Indonesia to plant oil palm. The extent of the area concerned was not disclosed. So far, the firm permanently discontinued land development work in the concerned concessions and amended its corporate sustainability policy by banning all peatland development irrespective of when the lands were acquired. Social society groups welcomed the initiative and encouraged the company to draw up and implement a time-bound action plan to deliver on its commitment. (See also MPPU Feb.’16 on public peatland restoration efforts in Indonesia)"]
[2017,"December","BRAZIL – biofuel policy – According to industry officials, Brazil’s National Energy Policy Council (CNPE) recommended raising the country’s mandatory biofuel blending rate to 10 percent in March 2018 – two points above the current 8 percent rate. The Government’s original plan only envisaged a one-point increase (to 9 percent) in March 2018, followed by a rate of 10 percent in 2019 (see MPPU Apr.’16 & Oct.’17). CNPE’s proposal, which would raise next year’s domestic biodiesel production by approximately 1 million tonnes, is now being reviewed by the Government.    "]
[2017,"December","BRAZIL – biofuel policy – Brazil Lower House passed ‘RenovaBio’, a proposed package of incentives and regulatory measures aimed at i) stimulating domestic biofuel production and consumption, ii) attracting investments, and iii) fostering competition within the sector. The bill has yet to be approved by the Senate before it can be signed into law by the country’s president. Through the proposed bill, fuel distributors would help meeting Brazil’s carbon dioxide emissions targets by selling increased volumes of ethanol and biodiesel. "]
[2017,"December","BRAZIL – infrastructure policy:  With a view to address historical infrastructure bottlenecks, the Government of Mato Grosso – the country’s leading grain-producing state – has invited bids for the construction and operation of new roads. Initially, licenses for three stretches of roads totaling 525 km will be awarded, but, by the end of 2018, licenses for a total of  3 125 km are expected to be granted. At the same time, the private sector has renewed its calls to include a railroad linking Mato Grosso with ports in the Amazon Basin in the Government’s infrastructure investment plans. Reportedly, the proposed railroad (dubbed Grain Railway or ‘Ferrogrão’) would extend over 1 142 km (see also MPPU July & June’17).              "]
[2017,"December","CHINA – soybean auctions:  In October 2017, out of a total volume of 253 444 tonnes of soybeans offered for sale from state reserves, only 160 tonnes found a buyer. Reportedly, the 2013 crop soybeans achieved an average price of CNY 3 070 per tonne (USD 464). As of 1 November, state auctions were suspended so as not to disrupt marketing of the new 2017/18 crop.       "]
[2017,"December","CHINA – agricultural policies:  In Heilongjiang Province, support payments provided to maize growers have been lowered to CNY 133.46 per mu (USD 303 per ha), down 13 percent compared to last year’s level. The measure reflects efforts to curb national maize production and eventually lower domestic stocks – while encouraging farmers to plant alternative crops, notably soybeans. At the same time, for soybeans, the targe-price subsidy that was in place for the last three seasons has been replaced by an area-based grower subsidy amounting to CNY 173.46 per mu (USD 393 per ha). Meanwhile, the countrywide minimum purchase price for wheat for 2018 was set at CNY 2 300 per tonne (USD 348), 2.5 percent lower than this year and the first cut in over a decade. The latter change is part of Government efforts to bring domestic wheat prices more in line with both the international market and local production costs, while increasing flexibility of the country’s grain reserve system. Furthermore, the Government plans to subsidize grain transportation and storage facilities. Under this policy, projects designed to build or upgrade grain transportation or storage facilities along main railways and ports will be subsidized in a bid to improve market efficiency and curb distribution costs."]
[2017,"December","CHINA – import policy:  China’s 11-percent value-added tax on imports of DDGs (dried distillers grains with solubles) will be removed on 20 December. Despite the tariff elimination, a resumption of DDGs imports from the United States appears unlikely, given that the anti-dumping and countervailing duties imposed on US-origin DDGs will remain in place (see also MPPU Feb.’17).     "]
[2017,"December","INDIA – agricultural policies:  Minimum support prices for Rabi crops (which are sown in November/December of this year for harvest during the first half of 2018) have been raised from last season’s level. For rapeseed and safflowerseed, they have been set at, respectively, INR 4 000 and INR 4 100 per quintal (USD 624 and 639 per tonne), up 8 and 11 percent year-on-year. For comparison, support prices for pulses have been raised by 8–10 percent and those for Rabi grains by 6–7 percent. Market observers pointed out that the increases may be insufficient to offset higher production costs. More importantly, oilseeds growers would only benefit from the higher support prices if state agencies actually scaled up crop procurement at the established prices.    "]
[2017,"December","INDIA – import policy:  In an effort to curb edible oil imports and lift domestic prices in support of local farmers and refiners, the Government raised import tariffs for vegetable oils and soybeans to the highest level in more than a decade. Considering that India is the world’s top importer of vegetable oils, the tariff hike could affect world markets. The duty increases for crude and refined palm, soy, sunflower and rapeseed oil ranged between 60 and 100 percent. Indian producers had been calling for increased import restrictions for several months. With local crushers and refiners facing growing competition from low-priced imports, domestic oilseed prices had dropped below minimum support price levels – notwithstanding a first, modest increase in import duties earlier this year (see MPPU Sep.’17). The latest duty hike is expected to i) drive up domestic edible oil prices, thus stimulating local oilseed crushing, and ii) support local oilcrop prices, promoting farmer selling. With regard to trade, experts expect a relatively short-lived drop in vegetable oil imports, given India’s steady demand expansion. On the other hand, the price competitiveness of Indian oilmeals could improve, encouraging export sales.          "]
[2017,"December","KAZAKHSTAN – agricultural policy:  Further to the reforms announced earlier this year (see MPPU Feb.’17), government officials informed that per-hectare oilseed subsidies will be converted to payments per tonne delivered by farmers to local crushers. Reportedly, the subsidy is aimed at improving the supply of local oilseed crushers with domestic raw materials. The payment applied to farmer deliveries will amount to KZT 4 000 per tonne (USD 12), which compares to a rate of KZT 25 000 (USD 74) proposed by the private sector. "]
[2017,"December","MALAYSIA – state-backed palm oil certification –  Earlier this year, the Government announced that it would fully cover the audit fees incurred by oil palm smallholders certifying their production under the Malaysian Sustainable Palm Oil scheme (MSPO) – the state-backed standard set to become mandatory across the industry by end-2019 (see MPPU Sep.’17). In October, ministry officials informed that also larger producers and processing facilities adopting MSPO certification would receive financial support. For estates cultivating between 40 and 1 000 hectares, 70 percent of audit cost would be covered, while estates above 1 001 hectares as well as crushers and refiners would be covered at a rate of 30 percent. In the meantime, the Government continued pursuing its efforts to obtain international acceptance of the standard, underlining that MSPO-certified palm oil is produced ‘balancing the needs of people, profit and planet’."]
[2017,"December","MALAYSIA – state-backed palm oil certification – The country’s MSPO standard will be reviewed next year to strengthen it and bring it more in line with globally accepted norms, the Malaysian Palm Oil Certification Council said. Reportedly, new developments concerning greenhouse gas emissions and carbon savings warrant such review."]
[2017,"December","MALAYSIA – state-backed palm oil certification – According to local press reports, the Malaysian state of Sabah intends to proceed with its own palm oil certification strategy – while the federal Government moves ahead with nationwide implementation of the MSPO standard. Reportedly, Sabah’s State Cabinet opted for the introduction of jurisdictional certification at state level back in 2015, i.e. before MSPO was launched. Under the local scheme, all palm oil produced within the state is required to undergo – over the 2015–2025 period – sustainability certification. The programme’s three main goals are i) to achieve zero loss of high conservation value and high carbon stock areas, ii) to exclude social conflict, and iii) to improve smallholder sustainability. "]
[2017,"December","UNITED STATES – biodiesel import restrictions – Anti-dumping duties:  In October 2017, the U.S. Commerce Department set – in addition to the preliminary countervailing duties imposed earlier this year (see MPPU Sep.’17) – preliminary anti-dumping duties on imports of biodiesel from Argentina and Indonesia, claiming that Argentine and Indonesian biodiesel was sold in the United States at dumping margins of, respectively, 54–70 percent and 51 percent. The Department is expected to announce its final anti-dumping decision in January 2018. "]
[2017,"December","UNITED STATES – biodiesel import restrictions – Countervailing duties:  In November 2017, the Department also set final countervailing (or anti-subsidy) duties, which will remain in place for five years. The final duties, which vary depending on the particular producer/exporter involved, have been fixed at 71–72 percent for Argentine biodiesel and 34–65 percent for Indonesian produce – partly exceeding the preliminary duties introduced in August 2017. At any rate, biodiesel imports from the two countries came to a standstill as soon as the high preliminary countervailing duties came into effect. For the final countervailing duties to come into effect, the U.S. International Trade Commission needs to confirm that the imports in question harmed U.S. producers – a decision expected to be made in December 2017."]
[2017,"December","UNITED STATES – biofuel policy:  Following consultations with lawmakers, the U.S. Environmental Protection Agency (EPA) decided to abandon its recent proposal to lower the mandatory targets for renewable fuel production in 2018 and 2019 (see MPPU Aug. & Oct.’17). The definitive targets announced for 2018 entail i) a fractional increase – compared to 2017 – in the total renewable fuels volume; ii) unchanged levels of non-advanced/conventional biofuels; and iii) a marginal rise for advanced biofuels. Under the ‘advanced biofuels’ category, volumes of biomass-based diesel have been set at 2.1 billion gallons for both 2018 and 2019 – which compares to 1.9 billion gallons in 2017. The country’s biodiesel industry criticized the final targets, arguing that these remain well below the sector’s production capacity."]
[2017,"December","UNITED STATES – GMO policy:  The U.S. Animal and Plant Health Inspection Service (APHIS), decided to withdraw a change to its biotechnology regulations put forward earlier this year (see MPPU Feb.’17). APHIS is responsible for reviewing GM crops to determine whether they pose risks to domestic agriculture. The modifications the agency had proposed represented a major change from APHIS’ existing ‘regulate first/analyze later’ approach to one that entailed assessing risks first and then regulating organism that did present risks. Reportedly, after receiving many comments objecting to the scope of the proposed change, APHIS decided to re-engage with stakeholders to determine the most effective, science-based approach for regulating GMO products while protecting plant health. "]
[2017,"December","UZBEKISTAN – market regulation:  According to local press reports, the Government has instructed state agencies to step up efforts to end the unreasonable and artificial overstating of prices for a number of basic foods and feedstuffs, including vegetable oils and cottonseed meal.                 "]
[2017,"December","Variable palm oil export tax – Indonesia, Malaysia:  In November and December 2017, Indonesia’s sliding export tax on crude palm oil stayed at zero. For eight months in succession, Indonesia’s reference price remained below the threshold that triggers taxation. In Malaysia, the variable export tax for November was raised to 6.5 percent (up from 6 percent in October) and then brought back to 6 percent in December, mirroring corresponding movements in the relevant benchmark price."]
[2017,"December","Sector development measures –  Indonesia – palm oil:  Indonesia’s Government launched an oil palm rejuvenation scheme for small oil palm growers, in a bid to raise yields in smallholder plantations (see also MPPU June’17). The scheme will be funded by Indonesia’s Oil Palm Estate Fund, an instrument set up in 2015 to collect levies on palm oil exports (see MPPU July '15). Reportedly, the new scheme will cover 20 000 ha of smallholder plantations in a first phase.  Actually, out of 4.7 million ha cultivated by smallholders nationwide, some 2.4 million ha are said to require replanting – either because palms have surpassed their productive age or because poorly performing varieties were used when plantations were established. Reportedly, high-yielding varieties allow annual yields of 8 tonnes of palm oil per ha, compared to the current average of 2 tonnes. Only farmers whose plantations have earned ISPO (Indonesian Sustainable Palm Oil) certification will be allowed to participate in the replanting programme. Designed to promote sustainable production practices and ensure compliance with national laws, ISPO certification has been made mandatory for companies, while remaining voluntary for smallholders. In order to qualify for certification, farmers need to prove legal ownership of their land – a requirement that not all smallholders are able to fulfill, according to social advocacy groups.        "]
[2017,"December","Sector development measures  –  Pakistan – sunflower seed:  To stimulate domestic oilseed production and thus help reduce the country’s dependence on edible oil imports, farmers cultivating sunflower seed in Punjab Province will receive a subsidy of PKR 5 000 per acre (USD 45 per ha). The local Government also plans to set up regional sunflower procurement centers (in cooperation with the country’s solvent extractors association), to ensure that farmers receive the guaranteed price of PKR 62 500 per tonne (USD 568)."]
[2017,"December","Sector development measures – Sri Lanka – oil palm:  Attracted by growing international demand for palm oil, Sri Lankan plantation companies are planning to expand the country’s area under oil palm cultivation and are calling for increased public support to do so. Reportedly, the central Government envisages total cultivated area to reach 20 000 hectares, compared to 8 500 hectares at present. However, industry experts pointed out that plantation companies face resistance at the local government and provincial council level.         "]
[2017,"December","National pesticide regulations – Brazil:  A fungicide developed primarily to combat Asian soy rust has received regulatory approval in Brazil. Commercialization of the new product is expected to begin before the start of the 2018/19 crop."]
[2017,"December","National pesticide regulations – European Union:  After a lengthy debate over potential cancer-causing risks of glyphosate, the European Union extended its authorization for the herbicide for an abbreviated period of five years (see also MPPU Oct.’17). Non-renewal of the license, which was scheduled to expire on 15 December 2017, could have led to disruptions in global grain trade. France, which voted against the renewal, announced that it would draw up a plan for phasing out the herbicide’s use on its territory over the next three years. "]
[2017,"December","National pesticide regulations – United States:  Following reports of significant crop damage from herbicide drift in the United States’ farm belt and Southeast (see MPPU Oct.’17), the U.S. Environmental Protection Agency (EPA) has reached an agreement with the manufacturers of herbicide dicamba on measures to protect neighbouring crops from the chemical’s use on GM soybean and cotton fields. Dicamba producers agreed to label changes that impose additional requirements for users of the herbicide. EPA will monitor the success of these changes before deciding whether to allow the herbicide’s use beyond the 2018 growing season."]
[2017,"December","Bilateral cooperation – Australia / Peru:  Under a recently signed free trade agreement between Australia and Peru, Australian rapeseed will be allowed to enter Peru free of duty."]
[2017,"December","Bilateral cooperation – Malaysia / Viet Nam:  Government officials from Malaysia and Viet Nam agreed to explore opportunities to increase strategic collaboration in the development of their respective plantation industries, particularly concerning oil palm, rubber and pepper. "]
[2017,"December","Bilateral cooperation – Malaysia / Ghana:  Malaysia’s palm oil industry is set to partner with companies in Ghana’s palm oil sector to strengthen the latter’s production and processing capacities. The exchange of technical and marketing expertise is expected to bolster Ghanaian production for both domestic consumption and exportation within West Africa."]
[2017,"December","Bilateral cooperation – Ukraine / China:  Last September, Ukraine and China signed a protocol on storage, packaging, labeling, quarantine and sanitary/phytosanitary requirements for importing Ukrainian sunflower meal into China. Adding China to its list of buyers is expected to raise Ukraine’s exports to Asia, both through direct sales to China and likely re-exports to other countries in the region."]
[2017,"December","Trade promotion measures – Argentina:  Government officials announced a 30 percent cut in docking service fees in the port of Rosario – the port that accounts for about 80 percent of the country’s agricultural exports. The measure is aimed at reducing the costs of producing and exporting grains. Reportedly, docking fees represent about 30 percent of total port expenses incurred by exporters."]
[2017,"December","Trade promotion measures – Israel:  The Government announced an increase in the amount of olive oil that can be imported into the country free of duties and other taxes. Over the next three years, the duty-free quota will be gradually raised from 5 000 to 7 000 tonnes per year. Currently, the country consumes about 20 000 tonnes annually, of which 15 000 tonnes are locally produced. Local production is expected to continue lagging behind domestic demand. The trade policy measure is aimed at driving down the price of olive oil to consumers and stimulate olive oil consumption. Out-of-quota imports will continue to attract tariffs of around 33 percent."]
[2017,"December","Trade promotion measures – Tunisia:  Tunisia’s olive oil industry has launched a programme to promote sales of packaged extra virgin olive oil to the Japanese market. The target is to meet five percent of the Asian nation’s import demand (compared to less than one percent at present). "]
[2017,"December","Overseas operations – China:  China’s state-owned grain trading group COFCO International, plans to raise the volume of soybeans it sources from Brazil’s Mato Grosso state from currently 4 million tonnes to 7.2 million tonnes over the next five years. Furthermore, a group of Chinese investors held talks with Brazilian companies about financing the construction of 30 grain storage facilities in Mato Grosso. At the global level, by the year 2022, COFCO International intends to double the amount of agricultural commodities it buys directly from farmers, thus reducing its reliance on traditional global trading houses."]
[2017,"December","Food labeling regulations  –  India:  India’s Food Safety and Standards Authority announced a further postponement in the compliance date for mandatory declaration of trans fat and saturated fat content on food product labels (see also MPPU Aug.’17). The new compliance date will be 31 December 2017. The additional deferral was granted to allow manufacturers to utilize existing stocks of packaging material."]
[2017,"December","Food labeling regulations – Peru:  As part of efforts to promote a healthy diet, Peru’s Health Ministry released a manual with detailed specifications for the inclusion of warnings on food product labels when the saturated fat, trans fat, salt or sugar content exceeds specific thresholds. The manual has been notified to the World Trade Organization for member country comments."]
[2017,"December","Food labeling regulations – Turkey:  Turkey’s Ministry of Food, Agriculture and Livestock postponed – for the seventh time – the implementation of its Product Verification Monitoring System (PVSM), amid industry concerns about cost and food safety issues arising from mandatory product verification and labelling. The new schemes’ main objective is to eliminate adulterated foods, imitations and fraud in six food categories, including vegetable oil."]
[2017,"December","Food labeling regulations –  United States:  The U.S. Food and Drug Administration proposed to revoke an authorized health claim that links soy protein consumption to reduced risk of heart disease, citing inconsistent results from research conducted since the claim was authorized in 1999. Companies currently using the health claim on food product labels may continue to do so until the agency takes a final decision."]
[2017,"December","National seed market news – Argentina:  Argentina’s Agricultural Ministry has approved the use of genetically modified soybean seed ‘SYN-000H2-5’. The new variety is resistant to herbicides other than glyphosate – a key trait, considering growing resistance of weeds against glyphosate."]
[2017,"December","National seed market news – Mexico:  Mexico’s phytosanitary agency (SENASICA) decided to revoke the permission to commercialize genetically modified soybean seed ‘MON-0432-6’, following the variety’s detection in areas where its cultivation was not permitted."]
[2017,"December","National seed market news  – United States:  Seed company Dow AgroSciences announced the commercial launch, in the United States, of new GM soybean variety ‘Enlist E3’. The variety has yet to be approved in major importing countries, notably the EU and China. Reportedly, production and marketing of the new variety will be subject to strict controls to avoid that seeds accidentally enter the export pipeline. Farmers planting the new variety will be required to agree to deliver their crop to specific facilities at set times.          "]
[2017,"December","Sustainable palm oil production – Comparison of certification schemes:  Civil society group Forest Peoples Programme published a study comparing the world’s principal palm oil sustainability standards based on a detailed assessment of their environmental and social requirements. In addition to highlighting areas of commonality and difference, the report draws attention to alleged gaps in each standard."]
[2017,"December","Sustainable palm oil production – Sourcing certified product:  Further to its commitment to exclusively purchase palm and palmkernel oil certified by the Roundtable on Sustainable Palm Oil (RSPO), German oleochemical company BASF recently joined the Forum for Sustainable Palm Oil (FONAP), whose principal goal is to raise the proportion of certified products in the German, Austrian and Swiss market."]
[2017,"December","Sustainable palm oil production – Private sector support to smallholder certification:  In addition to its pledge to buy only certified palm and palmkernel oil, German chemical and consumer goods company Henkel partnered with international NGO Solidaridad to promote sustainable palm oil production among smallholder farmers in Colombia. Under the joint initiative, small producers receive training on methods to improve productivity, reduce environmental impact and move towards certification."]
[2017,"December","Biodiesel industry news – Carinata-based aviation fuel – Australia, United States:  Australia’s national air carrier and a Canadian seed company have joined forces to launch carinata seed cultivation for aviation fuel production in Australia. Carinata is a non-food, industrial-type oilseed suitable for producing renewable diesel, especially aviation jet fuel (see also MPPU Dec.’12, Dec.’13 & June.’17). The target is to grow carinata seed on 400 000 hectares of land, ultimately producing about 180 000 tonnes of biojet fuel per year. Carinata crushing is also expected to yield a high-protein non-GM oilmeal for Australia’s expanding livestock market. A separate research project has been launched in the United States to explore carinata cultivation opportunities in the country’s Southeast. Industry experts reckon that demand for carinata could expand rapidly, against the backdrop of global airline carbon reduction commitments and limited supplies of other feedstock such as animal fat and waste oil."]
[2017,"December","Biodiesel industry news – Waste oil-based aviation/transportation fuel – China:  China has operated its first cross-ocean passenger flight powered by jet fuel containing 15 percent of renewable diesel produced form waste cooking oil (see also MPPU Mar.’14 & July’17). Sinopec, the state-owned oil refining company producing the biofuel, pointed out that securing sufficient, stable supplies of used cooking oil on the domestic market may pose challenges. Furthermore, according to industry experts, tax exemptions and state subsidies will be needed to support the development of the country’s aviation-grade biofuel sector. Sinopec also started selling road transportation diesel made from used cooking oil. Reportedly, the fuel is being sold at selected gas stations at a price of CNY 5.72 per liter (USD 0.87), which compares to CNY 6.02 (USD 0.91) charged for regular diesel."]
[2017,"December","Research & development / Product development: In the United States, a group of researchers has developed a new family of naturally derived vegetable oil structuring agents. The carbohydrate derivatives dubbed ‘gelators’ allow to solidify/thicken a variety of vegetable oils, thus offering an alternative to partial hydrogenation – a technology deemed hazardous to human health (see also MPPU Nov.’16 & Jan.’17)."]
[2017,"December","Research & development / Product development:  A Dutch oils and fats producer developed a shea-based, non-hydrogenated fat for use in industrial bakery products. Allegedly, the new product contains 40 percent less saturated fat than comparable lauric oil-based products.     "]
[2017,"December","Research & development / Product development:  A Danish food ingredient manufacturer has launched a soy-based emulsifier for use in industrial bakery products. Reportedly, the product was developed to offer an alternative to traditional, widely used lauric oil-based emulsifiers."]
[2017,"December","Research & development / Product development:  A group of French scientists presented a technology that allows converting waste water from olive oil production – normally classified as a pollutant – into biofuel, biofertilizer and safe water for use in agricultural irrigation."]
[2017,"December","Research & development / Product development:  A Brazilian company informed that it will be ready to produce hydrous ethanol from soybeans in two years’ time. The company plans to sell the product as transportation fuel and as raw material for a variety of industrial applications."]
[2017,"December","Futures Markets:  CME Group (Chicago Mercantile Exchange) informed that, on 31 October 2017, the maximum daily price change permitted on soybean contracts at CBOT (Chicago Board of Trade) was raised from 65 US cents per bushel to 70 US cents, while the limit for soymeal was lowered from USD 25 per tonne to USD 20 per tonne. The new limits will remain in effect until May 2018.                                                   "]
[2018,"January","ARGENTINA – biodiesel policy:  The Government announced a rise in the country’s variable export tax on biodiesel from zero percent applied in December 2017 to a fixed rate of 8 percent, effective 1 January 2018. Considering that, at the same time, the January export tariff rate for soy oil is going to be lowered to 26.5 percent (from 27 percent applied in December), the tax difference between the two products is set to drop from 27 percent to 18.5 percent. Reportedly, the reduced tax differential could result in negotiations with the United States regarding last year’s introduction of anti-dumping and countervailing duties on imports of Argentine biodiesel (N.B. The United States likened Argentina’s tax differential to a subsidy for the country’s biodiesel producers – see MPPU Sep.’17). Market observers pointed out that the higher taxation of biodiesel exports could negatively affect Argentina’s sales of the fuel to the European Union."]
[2018,"January","BRAZIL – biofuel policy:  Brazil’s Upper House passed ‘RenovaBio’, the policy package on renewable fuels endorsed by the Lower House last November (see MPPU Dec.’17). Markets expect the bill to be signed into law by the President in the near future. Next steps will include the formulation of: exact mandates for domestic biofuel consumption between 2020 (the new programme’s expected year of implementation) and 2030; detailed fuel standards and certification rules; and carbon credits and fiscal/financial/credit incentives for biofuel producers. In addition to bioethanol and biodiesel, the programme will also promote the commercialization of biogas, bio-methane and aviation biofuel."]
[2018,"January","CANADA – biofuel policy:  The government published a regulatory framework outlining the scope and key elements of a national standard for clean fuels. Consultations with all interested parties to work through the standard’s technical details will follow. The new standard will focus on reducing carbon intensity across the lifecycle of fuels. Changes in crop demand and land management practices that arise from clean fuel utilization and impact on GHG emissions will be taken into account. The existing federal mandate on blending 2 percent biodiesel and 5 percent ethanol into the country’s transportation fuels will be maintained in the short term. However, in the longer term, these volumetric requirements will be replaced with fuel-specific carbon intensity requirements that are expected to become more stringent over time.       "]
[2018,"January","CHINA – import standards:  Concerned about the presence of weed seeds in past consignments of soybeans from the United States, Chinese authorities decided to lower – as of 1 January 2018 – the level of impurities allowed in U.S. soybean cargoes to 1 percent. In the United Sates, quality specifications for No. 2 yellow soybeans – the variety dominating U.S. shipments – allow for up to 2 percent of foreign material. China’s inspection and quarantine services informed they would not guarantee speedy handling of cargoes containing more than 1 percent of foreign matter, adding that consignments with higher impurity levels could be subject to additional inspections, cleaning and related measures intended to mitigate pest risk. In recent years, US farmers have been confronted with new herbicide-resistant weeds, traces of which may indeed appear in harvested beans. According to industry sources, about half of US soybeans shipped to China last year would not meet China’s more stringent standard. Experts estimated that reducing the content of foreign matter to 1 percent could raise the costs of shipping soybeans to China by 15 US cents per bushel (USD 4 per tonne). To prevent disruptions in export flows, USDA’s Federal Grain Inspection Service intends to examine all soybean dispatches destined to China, holding back consignments that fail to meet the stricter standard. Furthermore, USDA will commission work on production and harvesting methods that allow reducing weed seed contamination in soybean deliveries."]
[2018,"January","CHINA – import policy:  Changes in China’s applied import and export tariff regime for 2018 include a reduction in the country’s import duty on coconut coir from previously 8 percent to 4 percent, from 1 January 2018."]
[2018,"January","CHINA – food standards:  China’s food standards authorities released a new code of hygienic practice for the processing of grains, including soybeans. The new standard concerns storage and transport of unprocessed grains and comprises detailed hygienic requirements and provisions for safety control procedures."]
[2018,"January","EUROPEAN UNION – renewable energy policy – Policy reform:  The European Council outlined its position regarding the reform of the bloc’s Renewable Energy Directive for the period 2021–2030. The Council proposed to retain the existing target of 27 percent renewable energy in total energy consumption in 2030. In the transport sector, the 14 percent target for each member state would be maintained for 2030, with a sub-target of 3 percent for ‘advanced biofuels’. Also the existing 7-percent cap for first-generation biofuels (such as vegetable oil-based biodiesel) would be maintained. If a member state sets a lower cap, it would have the option of lowering its overall target for renewables in transport. By comparison, the proposals tabled by the European Commission envisaged a progressive reduction of food-based fuels and their replacement with second-generation biofuels (see MPPU Dec.’16). Also the European Parliament called for more ambitious overall targets and recommended to distinguish between first-generation biofuels produced using sustainable practices and those purportedly produced in an unsustainable manner (see MPPU June’17). "]
[2018,"January","EUROPEAN UNION – renewable energy policy  –  Biodiesel standards:  The European Commission confirmed that rapeseed grown in Canada and Australia would remain eligible for entering the EU market as environmentally-friendly feedstock for biodiesel, as the crops have been shown to meet the bloc’s increasingly stringent requirements (N.B. From January 2018, all biodiesel feedstock need to deliver GHG lifecycle savings of 50–60 percent compared to fossil fuels – up from 35 percent in 2017). For Australia, the EU represents a top rapeseed export market, with the bulk of deliveries absorbed by the bloc’s biodiesel industry.  "]
[2018,"January","EUROPEAN UNION – GMO approval:  The European Commission authorized five new GM oilseed varieties for food/feed use, comprising four soybean and one rapeseed varieties. The authorizations, which exclude cultivation, will be valid for 10 years. All products derived from the GMOs will be subject to the bloc’s labelling and traceability rules."]
[2018,"January","GREECE – olive oil marketing:  From January 2018, the country’s restaurant and hospitality sector will be required to serve olive oil only in its original packaging, identifying the brand. The measure is meant to prevent refilling of old bottles with lower grade olive oil, thus promoting quality and protecting consumers from fraud. While comparable regulations are in place in Italy, Portugal and Spain, efforts to introduce EU-wide legislation to this effect were suspended back in 2013 (see MPPU June ’13)."]
[2018,"January","INDIA – agricultural policy:  India’s central Government has raised the minimum support price for ‘toria’ (brassica rapa subsp. oleifera), an oilseed variety mainly grown in Rajasthan, by 9.5 percent to INR 3 900 per quintal (USD 614 per tonne).           ","                 "]
[2018,"January","MALAYSIA – variable palm oil export tax:  Malaysia’s sliding export duty for January 2018 has been set at 5.5 percent, down from 6 percent in December. The downward correction reflects a decrease in the relevant market reference price."]
[2018,"January","MALAYSIA / SRI LANKA – free trade agreement:  Reportedly, the two countries are exploring the possibility of entering into a free trade agreement. In the event that an agreement is reached, Malaysia expects several products to gain better access to the Sri Lankan market, including palm oil, on which Sri Lanka currently charges a special levy of LKR 110–130 per kg (USD 715–844 per tonne).           "]
[2018,"January","PHILIPPINES – coconut sector development:  The Philippine Coconut Authority plans to distribute 20 million coconut seedlings during the 2018–2020 period via its national replanting programme, in a bid to revitalize the country’s coconut industry (see also MPPU July’16 & Oct.’17).  "]
[2018,"January","THAILAND – health policy:  With a view to reduce consumers’ risk of heart disease, the Thai Food and Drug Administration drafted a new requirement that would ban the use of partially hydrogenated oils in foods. The proposed ban is consistent with global efforts to eliminate industrially produced trans fats from foods, with complete bans set to come into force later this year in Canada and the United States (see MPPU July’15 & Oct.’17)."]
[2018,"January","THAILAND – market regulation:  Reportedly, towards the end of last year, Thailand’s inventories of crude palm oil have swollen to half a million tonnes, causing prices for fresh palm fruit to slide below THB 3.50 per kg – compared to price levels of THB 5.0 in June last year (respectively, USD 110 and 157 per tonne). In a bid to protect growers’ incomes, the Government plans to i) foster the uptake of crude palm oil by the country’s energy sector, and ii) seek new export opportunities within Asia, notably in China and India. The domestic target price for fresh palm fruit has been set at THB 4.00 per kg, which compares to production costs of about THB 3.80 per kg (USD 125 and 119 per tonne, respectively). Similar measures have been implemented in past years, especially during the rainy season, when high domestic palm oil output tends to depress farm gate prices (see MPPU Apr.’16 & July’17). The Thai Government regularly holds consultations with farmer representatives, processors and consumers to coordinate measures to stabilize domestic palm oil supplies and prices."]
[2018,"January","UKRAINE – export policy:  On 7 December 2017, the Ukrainian Parliament voted to lift the existing value added tax refund on exports of soy, sunflower and rapeseed with effect from 1 March 2018. Subsequently, the Parliament agreed to soften the measure: based on the latest amendments, the tax refund for sunflowerseed exports will remain in place, while the refunds for rapeseed and soybean shipments will only be suspended for a limited period, namely from 1 September 2018 to end 2021 for soybeans and from 1 January 2020 to end 2021 for rapeseed. The bulk of Ukraine’s rape and soy production is exported in the form of seeds, as opposed to sunflower, which is crushed locally and subsequently exported as oil and meal. The temporary suspension of refunds for rape and soy could weigh on the crops’ domestic prices, possibly leading to a drop in plantings, while Ukraine’s crushers could benefit from higher seed supplies."]
[2018,"January","UNITED STATES – biodiesel import restrictions:  The U.S. International Trade Commission found that biodiesel from Argentina and Indonesia hurt US producers and that biodiesel production in the two countries is subsidized. The affirmation allows the countervailing duties set by the U.S. Commerce Department last November to come into force and remain in place for five years (see MPPU Dec.’17)."]
[2018,"January","Transport infrastructure – Northern Brazil – Railway project:  Four international grain trading companies are considering to submit a joint bid for the ‘Ferrogrão’ grain railroad project that would link Mato Grosso state with transshipment ports in the Amazon basin (see also MPPU July & Dec.’17). Another bid is likely to come from a group of Chinese state-owned firms (see MPPU June’17). Total construction costs for the new rail line, which would allow moving approximately 42 million tonnes of grains per year, have been estimated at BRL 14 billion (USD 4.4 billion), and contractors would be awarded a 65-year license from the government to operate the railroad. The project is said to face local opposition from indigenous communities, subsistence farmers and mining companies."]
[2018,"January","Transport infrastructure – Northern Brazil – Port investment:  A global agri-trade company has filed environmental impact studies with the authorities of the state of Pará concerning the construction of a new river port facility. Located in the Barcarena region, the project would complement recent public and private efforts to develop the country’s northern export corridors, or ‘Arco Norte’ (see MPPU July & Sep.’17). The new facility would receive barges loaded in the upriver transshipment terminal of Miritituba, carrying grains coming primarily from Mato Grosso state. The port’s annual handling capacity would amount to 6 million tonnes of grains. "]
[2018,"January","Pest control and pesticide regulation – Xylella control – European Union:  Ten EU member countries agreed on a road map outlining next steps to combat the bacterial disease xylella fastidiosa that was first detected on olive trees in Italy in 2013 and is now present in four member states, threatening a range of crops (see also MPPU Feb.’17). The European Food Safety Authority agreed to update its 2015 risk assessment of the disease, and the European Commission offered to make available EUR 10 million (USD 12.1 million) to support research, improve prevention measures and combat the pest. Concerned countries highlighted the need to i) restrict the movement of risky material within the EU, ii) enhance detection and surveillance and maintain an updated list of locations where the disease is present, and iii) consider containment strategies where eradication is not possible. Currently, no treatment exists for the insect-transmitted pest. The European Union’s past focus on culling infected trees in Italy’s Apulia region met with resistance by local growers (see MPPU July’16)."]
[2018,"January","Pest control and pesticide regulation – Dicamba regulation – United States:  Since federal authorities restricted the use of the herbicide dicamba late last year (see MPPU Oct. & Dec.’17), additional, state-specific restrictions have been imposed in Arkansas, Minnesota, Missouri and North Dakota. The measures are meant to reduce instances of the herbicide drifting and damaging neighbouring fields. Agri-business company Monsanto, which markets dicamba-based herbicides along with genetically engineered dicamba-tolerant varieties of soybeans and cotton to help farmers control weeds that developed resistance to other herbicides, maintains that the chemicals are safe when properly applied. Reportedly, Monsanto decided to offer US soy farmers a cash incentive if they agree to use the herbicide on the company’s GM soybeans. The recently imposed regulatory restrictions are expected to drive up the costs of using dicamba, which Monsanto is aiming to counter with its cash-back offer."]
[2018,"January","Pest control and pesticide regulation – Glyphosate safety – United States:  A draft human risk assessment released by the U.S. Environmental Protection Agency (EPA) concludes that glyphosate – a widely used though controversial herbicide – is not likely to be carcinogenic to humans. The agency added that no other meaningful risk to human health was found when the product is used according to label instructions. EPA has called for public comments on its assessment. The agency’s final decision, which is scheduled for 2019, will outline any proposed risk mitigation measures, should these be deemed necessary. Meanwhile, in the state of California, products that may contain glyphosate are required to carry warning labels stating the chemical is known to the state to cause cancer – a decision that has been challenged by US farm groups and producers of the chemical."]
[2018,"January","Food ingredients & health – United States:  A study undertaken by the United States Department of Agriculture, assessed product turnover in the U.S. food industry and looked into implications for nutrient content – focusing on three health-relevant ingredients: salt, sugar and fat. Upon examining product entries and exits in high-turnover food categories (i.e. breakfast cereals, yogurts, snacks and refrigerated/frozen meals), it emerged that, over the 2008–2012 period, sugar content has either fallen or remained unchanged in all five categories, while sodium content was gradually reduced in four categories. By contrast, saturated fat content has increased by statistically significant amounts in the four food categories that contain fat in meaningful quantities. Reportedly, these contradictory trends support the contention that policies focusing on reducing a single nutrient (such as salt) may not lead to overall healthier products as food manufacturers may compensate for deterioration in taste by increasing levels of other nutrients (such as fat). As for trans fatty acids, the study suggests that new federal labelling regulations and dietary guidelines have effectively reduced the trans fat content of US food products. Claims by some researchers that trans fats have for the most part been replaced by saturated fats are not corroborated by the study."]
[2018,"January","Research and product development news – Enzyme-assisted biodiesel production:  An Indian company embarked on biodiesel production from low-grade waste feedstock using a newly developed, enzyme-based technique. As feedstock, the company intends to use waste oils with a high content of free fatty acid, including brown grease, used cooking oil and palm fatty acid."]
[2018,"January","Research and product development news – Food-grade rapeseed protein:  Canadian researchers developed a membrane-based process to obtain food-grade protein from defatted rapeseed meal. Currently, due to its poor taste and the presence of antinutrients, rapeseed meal is exclusively used as animal feed, notwithstanding its high nutritional value."]
[2018,"January","Research and product development news – High-oleic/low-linoleic soybean:  Using gene-editing technologies, a company in the United States is working on a new soybean variety characterized by both high oleic acid content and low linoleic acid content – a fatty acid profile that is known to increase an oil’s shelf life and frying capability, without having to be hydrogenated (i.e. avoiding the formation of harmful trans fats). Given that gene-editing techniques are not subject to regulation by USDA, the company expects the approval process for the new variety to be short and plans to begin commercial sales later this year."]
[2018,"January","Research and product development news – Palm oil origin identification:  In Spain, a group of scientists claims to have developed a quick and accurate method to identify the geographical origin of palm oil – which, according to the group, could help governments and industry to detect oils fraudulently labelled as ‘certified sustainable’. Reportedly, the newly developed method combines liquid chromatography with chemometric and data-fusion strategies."]
[2018,"January","Research and product development news – Omega3-rich rapeseed:  Early trials conducted in Norway with an omega 3-rich oil derived from a GM rapeseed developed in Australia (see MPPU Dec.’16 & June’17) would indicate that the product is suitable for use as salmon feed. Results suggest that there is no difference between fish fed with traditional fish oil (– supplies of which are limited –) and fish fed with the modified plant oil. Pending regulatory approvals, commercialization of the new rapeseed variety in the United States, Canada and Australia could start in 2018 or 2019. Reportedly, seeds would be sold to growers under license, for segregated cultivation and processing. "]
[2018,"January","Research and product development news – High-oleic/low-saturated fat rapeseed oil:  In accordance with global industry efforts to offer food ingredients perceived as more healthy, a multinational agri-business firm launched a new high-oleic rapeseed oil derived from hybrid seed (i.e. without genetic modification). According to the company, the new oil’s saturated fat content is 35 percent below that of conventional rapeseed oil. Despite its low saturated fat content, the oil is said to offers strong frying performance, long shelf life and fresh taste. Furthermore, growers of the hybrid rapeseed are promised of their high yields and disease resistance quality.  "]
[2018,"January","Sustainably produced palm oil – National producer alliance:  International NGO Solidaridad Network reported that, in Colombia, palm oil producers signed a national zero-deforestation agreement. Companies pledged to adapt their individual plans to the national commitment to eliminate deforestation from the palm oil supply chain, with a view to help establish the country’s reputation as sustainable tropical agricultural commodities provider. Monitoring of the declaration has been entrusted to a government agency, the Colombian Institute of Hydrology, Meteorology and Environmental Studies, which will be responsible for comparing forest data with the production and supply information provided by producers."]
[2018,"January","Sustainably produced palm oil – RSPO initiative:  The Roundtable on Sustainable Palm Oil (RSPO) announced the formation of the North American Palm Oil Network (NASPON). Reportedly, in an effort to accelerate collaboration within the market, NASPON’s mission will be to educate and assist North American companies in making and delivering on commitments to source sustainably produced palm oil. The newly formed coalition comprises industry associations, civil society groups, consumer goods manufacturers, food-service retailers and palm oil traders. "]
[2018,"January","Sustainably produced palm oil – Certification impact:  A group of U.S. researchers reported on efforts to measure the actual effect of sustainability certification on deforestation and fire within oil palm plantations in Indonesia. The analysis of data of RSPO-certified and non-certified oil palm plantations for the 2001–2015 period suggests that certification significantly reduced deforestation among participating plantations, but not fire occurrence or clearance of carbon-rich peatland. Moreover, it emerged that certification was mostly adopted in older plantations that comprised little remaining forest and, consequently, the actual area conserved appears to be rather small. The study concludes that certification schemes have the potential to contribute to the protection of endangered tropical forests. However, broader adoption of certification by oil palm growers – targeting especially oil palm companies that develop forest frontiers as opposed to those working with well-established plantations – is likely needed for palm oil certification to result in meaningful protection of total forest area, the study says."]
[2018,"January","Environmental governance – soybean, Brazil:  According to the Brazilian oilseed industry association, ABIOVE, growing soybean cultivation has not been a significant driver behind deforestation in the Amazon basin. The finding is based on recently released Government material providing satellite imagery of soybean production in the Amazon biome. Allegedly, during the last decade, soybean farming only accounted for 1.2 percent of total deforestation in the area – a circumstance that is linked to the launch of the Brazilian Soy Moratorium in 2006 and to improvements in public environmental governance. Reportedly, although the area planted with soy continued to rise strongly, the expansion occurred primarily on former pastureland and areas cleared prior to the introduction of strict deforestation limits. The Brazilian Soy Moratorium bans the trading and financing of soybeans grown on land illegally cleared in the Amazon region. The voluntary initiative is supported by a multi-stakeholder coalition bringing together the private sector, NGOs and the government."]
[2018,"March","ARGENTINA – export taxation:  In line with pledges made in October 2016 (see MPPU Nov.’16), the Government lowered the country’s export tax on soybean by 0.5 percentage points, to 29.5 percent, effective 2 January 2018. For the next two years, the tax will be reduced by a further 0.5 percentage point each month, eventually settling at 18 percent in December 2019. The same half-point-per-month reduction will apply to the export tax on soymeal and soyoil, which was lowered to 26.5 percent in January and will drop to 15 percent over the next two years. Reportedly, the tax cut is part of a number of measures taken over the last two years to increase competitiveness and predictability in the oilcrops sector. "]
[2018,"March","BRAZIL – biofuel policy:  Following recommendations made by Brazil’s National Energy Policy Council (CNPE), the Government raised the nationwide mandatory blending rate for biodiesel from 8 percent to 10 percent (see also MPPU Dec.’17). From 1 March 2018, all petroleum diesel is required to include 10 percent of vegetable oil-based diesel. While biodiesel manufacturers can use any vegetable oil as feedstock, the share of soybean oil in total feedstock uptake remains capped at 80 percent. Furthermore, one-fifth of all feedstock must be sourced from small family farms. The higher mandate is estimated to raise Brazil’s annual biodiesel consumption by almost 30 percent – from 3.8 million to 4.9 million tonnes, according to industry estimates. During 2018, the biofuel industry’s uptake of soybean oil is forecast at 3.7 million tonnes, which compares to 2.9 million tonnes in 2017. Accordingly, domestic soybean crush related to biodiesel would rise from 14.5 million to 18.5 million tonnes. Reportedly, for 2019 and beyond, further increases in the country’s mandatory blending rate are envisaged, conditional upon positive test results on motor engines. The industry’s current blending capacity is reported to be around 7 million tonnes per year, which would be compatible with higher blending rates."]
[2018,"March","CANADA – health policy:  The Canadian Government invited public comments on proposed front-of-package labeling regulations that would be aimed at addressing the increasing prevalence of nutrition-related chronic diseases in the country. Under the proposed rules, consumers would be provided with relevant information as to whether a food exceeds certain thresholds in any of the three nutrients of concern – saturated fat, sodium and sugar. The industry would have until December 2022 to comply with the new labelling regulations."]
[2018,"March","CHINA – public rapeseed oil reserves:  The last round of rapeseed oil sales from state reserves comprised only four auctions, held between mid-January and early February 2018. In total, some 154 thousand tonnes of rapeseed oil have been offered, virtually all of which found a buyer. Average auction prices ranged from CNY 6 000 to CNY 6 343 per tonne (respectively, USD 947 and 1 001). During the two preceding campaigns, sales from government reserves were considerably higher, amounting to, respectively, 2.3 and 2 million tonnes. The sharp drop in disposals points to a contraction in public stocks, which would go hand in hand with the government’s decision to terminate nationwide rapeseed procurement and stockpiling (see MPPU July’15)."]
[2018,"March","CHINA – import standards:  On 1 January 2018, stricter standards for imports of raw, unprocessed soybeans from the United States have taken effect (see MPPU Jan.’18). Under the new procedure, USDA’s Animal and Plant Health Inspection service is expected to notify China when a shipment exceeds 1% of foreign material. All US soy consignments, including those exceeding the threshold, will be allowed to enter the country while the U.S. sets up procedures to meet the new requirement. However, the new rules could entail additional processing at Chinese ports to remove impurities, hence raising total shipment costs. In February, USDA issued guidelines for US growers and exporters on how to reduce weed presence in soybean consignments by adopting a set of strict production and handling practices.                 "]
[2018,"March","EUROPEAN UNION – biofuel policy:  With regard to the pending reform of the EU’s Renewable Energy Directive (RED), the European Parliament voted in favour of a proposal that would freeze production of crop-based biofuels at 2017 levels, while capping their share in total road/rail transport fuels at 7 percent. At the same time, the joint share of “advanced” fuels (defined as fuels with a lower impact on land use), waste-based biofuels, renewable electricity and fuels of non-biological origin should amount to at least 1.5 percent in 2021, rising to 10 percent in 2030. Furthermore, EU lawmakers proposed to remove, by 2021, palm oil-based biodiesel from the list of biofuels that count towards the bloc’s renewable fuel targets (while all other vegetable oils could be used as feedstock until 2030). Likely marking the end of the EU’s palm-based diesel imports, the latter proposal attracted strong criticism from palm oil producing countries in Southeast Asia. As for the bloc’s overall renewable energy targets, the Parliament’s proposal envisages that, by 2030, a minimum of 35 percent of total energy consumption comes from renewable sources, while the share of renewables in transport should be at least 12 percent. Moreover, energy efficiency would need to be raised by 35 percent. The final shape of the EU’s RED will only emerge after tripartite negotiations have taken place between the Parliament, the Commission and the Council of Ministers (see also MPPU Dec.’16, June’17 and Jan.’18)."]
[2018,"March","EUROPEAN UNION – biodiesel import restrictions – Indonesia anti-dumping duties:  In August 2015, the WTO’s dispute settlement body set up a panel to examine whether the EU’s anti-dumping duties on biodiesel imports from Indonesia – introduced in 2013 for five years – were consistent with the existing international trade agreements (see MPPU Oct.’15). The panel released its ruling in January 2018. Largely upholding claims by Indonesia, the panel found the disputed measure to be inconsistent with WTO law and recommended that the EU bring the measure into conformity with its obligations under the WTO Anti-Dumping Agreement and the GATT 1994. The EU and Indonesia may appeal the panel’s findings, in which event the WTO’s Appellate Body would have to review the case. The latest ruling follows last year’s WTO findings in favour of Argentina, regarding the EU’s anti-dumping duties on biodiesel imports from that country. In that instance, the EU agreed to cut its import tariffs, which prompted a resumption in biodiesel imports from Argentina (see also MPPU Nov.’16 & Oct.’17). "]
[2018,"March","EUROPEAN UNION – biodiesel import restrictions – Argentina anti-subsidy investigation:  The European Commission informed that it launched a new investigation concerning imports of biodiesel originating from Argentina, citing evidence submitted by the EU’s biofuel industry that Argentine biodiesel producers benefit from state subsidies, causing injury to EU producers. Allegedly, Argentina’s subsidies come in the form of artificially cheap goods and services (notably soybeans), price support for biodiesel, direct transfers and preferential loans, and government revenue forgone or not collected. By comparison, the anti-dumping duties imposed in 2013 were related to Argentina’s differential export tax system. The Commission’s new investigation has to be concluded by end February 2019, while provisional anti-subsidy duties may be applied from November 2018 onward. "]
[2018,"March","INDIA – import levies and tariffs – general import levies:  The Government modified its general levies charges on all imports as follows:  the 2% Education Cess and the 1% Secondary and Higher Education Cess were abolished and replaced with a Social Welfare Surcharge of 10 percent of the basic customs duty charged on imports, including purchases of food and processed food products. The new levy has entered into effect on 2 February 2018."]
[2018,"March","INDIA – import levies and tariffs – import tariffs, selected vegetable oils:  On 2 February 2018, the import tariff for selected crude vegetable oils has been raised from 12.5 percent to 30 percent, while the duty for the corresponding refined oils was increased from 20 percent to 35 percent. The tax rise concerns oil from cottonseed, safflowerseed, linseed, castorseed, sesame seed, palmkernel, coconut, olive, groundnut and maize, i.e. those oils that were excluded from last year’s tax hikes (see MPPU Sep. & Dec.’17)."]
[2018,"March","INDIA – import levies and tariffs – import tariff, palm oil:  The import duties for crude and refined palm oil – which were raised twice last year – have been increased further, with effect from 1 March 2018. The tariffs for crude and refined palm oil were raised to, respectively, 44 percent and 54 percent (from previously 30 percent and 40 percent) – i.e. the highest level in more than a decade. The third increase in tariffs in less than six month is meant to push up domestic prices of edible oils and back local oilseeds prices, in a bid to stimulate local oilseed production and help curb edible oil imports. India is the world’s top importer of palm oil."]
[2018,"March","INDIA – export incentives:  In December 2017, the Government raised the export incentive for soymeal shipments from 5 percent to 7 percent. Under the country’s foreign trade policy, selected “high potential” goods benefit from export rewards, payable as a percentage of realized FOB values.       "]
[2018,"March","INDIA – agricultural policy – support price:  The Central Government raised the minimum support prices (MSP) for milling and ball copra to, respectively, INR 75 000 (USD 1 153) and INR s 77 500 (USD 1 191) per tonne – up 15 percent from last year’s rates. The new MSP are meant to ensure remunerative prices for coconut farmers and encourage investment in coconut cultivation. India’s national farmer and consumer cooperatives would continue to act as central nodal agencies responsible for procurement operations in coconut growing states.  "]
[2018,"March","INDIA – agricultural policy – oilseeds procurement:  In response to price falls below the MSP level, India’s cabinet has approved a doubling in the procurement of oilseeds (and pulses) by state governments. More specifically, the amount state agencies are allowed to guarantee for procurement operations has been raised to INR 190 billion (USD 2.9 billion), for a five-year period ending in 2021/22. Procurement operations will continue to be handled by designated cooperatives under the existing Price Support Scheme (PSS), which is implemented at the request of concerned state governments. The move is aimed at protecting farmers from making distress sales immediately after harvest, when market prices tend to plunge. Apart from providing remunerative prices to farmers, India’s PPS is also meant to safeguard the interests of consumers, by making products available at reasonable prices and with low costs of intermediation.   "]
[2018,"March","INDONESIA – biofuel policy:  To date, government subsidies for mandatory sales of biodiesel (i.e. diesel blends containing 20 percent of palm oil-based biodiesel) have only been made available to the energy sector and for transport fuels sold to the public through state-owned company Pertamina, also known as Public Service Obligation (PSO) sales. According to local media reports, the Government is now considering to expand the scope of its biodiesel subsidies to the country’s mining industry and to the non-PSO sector, i.e. fuels sold through private sector outlets. The move would be part of ambitious plans to further expand domestic consumption of palm-biodiesel. While, for PSO sales, the Government would continue to fully cover the price gap between conventional diesel and biodiesel, the subsidy for non-PSO distributors could be capped at IDR 4 000 per liter (USD 0.29). Reportedly, the Government is also considering to reinstate biodiesel blends in the country’s locomotive sector, where mandatory blending had been suspended last year following cases of engine failure. Based on recent positive performance tests, low-concentration blends (containing up to 5 percent of biodiesel) may be introduced in mid-2018."]
[2018,"March","INDONESIA – environmental policy – peatland restoration:  Further to setting up, in 2016, an agency responsible for coordinating the restoration of damaged peatland (see MPPU Feb.’16), in February 2018, the Government channeled USD 21.7 million in state funds to the governors of seven provinces designated as priority intervention areas for field programmes to accelerate peat restoration, a civil society group reported. The provinces concerned are Central, West and South Kalimantan, South Sumatra, Riau, Jambi and Papua. The drainage and subsequent burning of peatland for agriculture and plantations represent a major source of carbon emissions. On a related note, a group of Indonesian researchers has developed a methodology for mapping peatland using remote sensing technologies, combined with established on-the-ground measurements. Reportedly, measuring the extent and depth of peat soils is essential for assessing ecological damage resulting from disturbances. Allegedly, the Indonesian Government intends to use the new methodology in the protection, sustainably management and restoration of peatland areas."]
[2018,"March","INDONESIA – environmental policy – plantation permits:  Quoting official sources, a civil society group reported that – as a result of the national moratorium on oil palm expansion announced by the Indonesian President in 2016 (see MPPU June & Aug.’16) – there are 1.5 million hectares for which the processing of new oil palm concessions has been put on hold. At the same time, observers pointed out that four new permits for areas comprising high-density forest cover were issued last year in the provinces of Papua and West Papua. According to Government officials, the permits in question had been approved in principle by the previous administration in 2013–14.        "]
[2018,"March","REPUBLIC OF KOREA – biofuel policy:  Effective January 2018, the Republic of Korea raised the mandatory inclusion rate for biodiesel in transportation diesel from 2.5 percent to 3 percent. The new rate is set to remain in place until end 2020. Domestic biodiesel output is expected to increase accordingly and, with it, the country’s imports of palm oil, the primary feedstock for domestic biodiesel production.     "]
[2018,"March","SRI LANKA – market regulation:  Confronted with persistently high market prices for coconut, the Government confirmed its plan to temporarily permit the importation of fresh unhusked coconut (see also MPPU June’17). Reportedly, the county’s quarantine law has already been revised to enable traders to import coconut kernels. In Sri Lanka, consumer prices surged as domestic coconut output tumbled on the back of prolonged drought and pest attacks. The release of publicly held coconut stocks (see MPPU Oct.’17) barely calmed the market. As for the government-imposed price of LKR 75 per nut (USD 0.48), the responsible state agency informed that legal action has been taken against traders who sold nuts for more than the controlled price. Meanwhile, the country’s coconut growers association voiced its opposition to any type of coconut importation, stating that foreign purchases would damage the local industry and its reputation for high-quality coconut products."]
[2018,"March","TURKEY – biofuel policy:  On 1 January 2018, mandatory blending of transport diesel with 0.5 percent biodiesel has become effective nation-wide. Based on domestic diesel consumption of about 22.3 million tonnes, biodiesel uptake would amount to approximately 115 000 tonnes per year. Reportedly, refiners acquiring biodiesel would be entitled to excise duty exemptions. The country’s installed biodiesel production capacity is reported at 235 000 tonnes.                    "]
[2018,"March","UNITED STATES – biofuel policy – tax incentive:  The U.S. Congress passed a one-year extension of the USD 1 per gallon tax credit granted to biodiesel blenders, which had expired on 31 December 2016. The retroactive extension to 2017 will trigger a cash transfer of approximately USD 2.6 million to the US biodiesel supply chain, matching last years’ biodiesel market of 2.6 million gallons. The U.S. biodiesel industry had sought an extension of the 12-year old subsidy through the current year (2018) and possibly beyond. The industry had also urged lawmakers to convert the blenders credit into a domestic producers credit, in a bid to prevent foreign biodiesel from qualifying for the subsidy (see MPPU June’17)."]
[2018,"March","UNITED STATES – biofuel policy – anti-dumping duties:  The U.S. Department of Commerce (DOC) issued its final determinations in the anti-dumping duty investigations of biodiesel imports from Argentina and Indonesia (see also MPPU Dec.’17). DOC determined that Argentine and Indonesian exporters sold biodiesel in the United States at, respectively, 60–86 percent and 93–277 percent less than fair value. Accordingly, the country’s customs offices will be instructed to collect cash deposits from importers based on those final rates. DOC’s determination remains subject to a second ruling by the U.S. International Trade Commission (expected on 6 April 2018) on whether U.S. biodiesel producers were injured by dumped imports. According to media reports, Argentina and Indonesia are considering to file cases against DOC at both the WTO and the U.S. Court of International Trade. It is important to note that the above anti-dumping duties have come in addition to final anti-subsidy (or countervailing) duties imposed last year on the same products (see MPPU Dec.’17). With combined rates of up to 159 percent for Argentine biodiesel and 341 percent for Indonesian produce, imports from the two countries are expected to come to a halt."]
[2018,"March","UNITED STATES – biofuel policy – research grant:  The U.S. Department of Energy decided to support research on the development of enhanced sugarcane and elephant grass (miscanthus fuscus), in a bid to contribute to efforts to identify alternative feedstock for the production of transport biodiesel and aviation fuel. Reportedly, a team of researchers is working on raising the oil content in the stem of the two crops to 20 percent, using genetic engineering techniques. Allegedly, if fully successful, the targeted crops would produce up to 15 times more biodiesel per unit of land compared to soybeans."]
[2018,"March","Variable palm oil export tax – Indonesia, Malaysia:  Until end March 2018, Indonesia’s sliding export tax on crude palm oil will stay at zero, given that (for the eleventh month in succession) Indonesia’s reference price remained below the threshold that triggers taxation. Irrespective of the zero export tax, Indonesia’s exports remain subject to a fix levy of USD 50 per tonne (see MPPU Aug.’15). Meanwhile, Malaysia decided to suspend its variable tax for a period of three months, starting 8 January 2018 (although taxation would be reintroduced if domestic palm oil stocks were to drop below 1.6 million tonnes). The tax suspension was implemented in a bid to stimulate international demand, curb domestic stocks and support the price of Malaysian palm oil. The latter has fallen to 16-month lows in December 2017, while inventories climbed to two-year highs. By making Malaysian palm oil more competitive, the tax suspension has prompted a conspicuous rise in the country’s shipments since last January, in particular with regard to sales to price sensitive markets such as India and China.      "]
[2018,"March","Sector development measures – China – soyfood and feed industry:  According to media reports, in 2018, soyfood manufacturers and feed producers in China’s Jilin Province will benefit from state subsidies aimed at fostering the development of soybean processing and feed production in the country’s Northeast. The provision of direct support payments to specialized local industries appears to be in line with China’s on-going policy re-orientation away from nationwide crop procurement programmes (see also MPPU June’16). Details on the amount and modalities of the payments are still to be provided. Reportedly, soybean processors holding food production licenses and having an annual capacity of more than 5 000 tonnes would be eligible for the subsidies."]
[2018,"March","Sector development measures – Egypt – olive oil sector:  Egypt signed the Sixth International Agreement on Olive Oil and Table Olives (see MPPU Feb.’17), thereby regaining full membership in the International Olive Council, IOC. According to media reports, under the agreement, Egypt will benefit from financial grants to support domestic olive production, including a new initiative to promote cultivation in the Western Desert. In recent years, the country’s partly export-oriented olive oil industry has expanded gradually.  "]
[2018,"March","Sector development measures – European Union – protein crops sector:  As a first phase in the formulation of a strategy for promoting protein-rich crops (in particular soybeans) across the EU, the European Commission has sought the views of industry experts and other stakeholders on the sector’s state of play. The initiative stems from concerns over the bloc’s heavy reliance on soybean imports as well as growing consumer preference for non-GMO food and feed (see also MPPU July & Aug.’17). Among other things, the Commission wishes to assess the effectiveness of policy instruments such as voluntary coupled support, i.e. the possibility of linking direct farmer support payments to the production of protein crops."]
[2018,"March","Sector development measures – Montenegro – olive oil production:  With assistance from the Turkish development cooperation agency, Montenegro envisages to strengthen domestic olive oil production, in a bid to penetrate world markets more effectively. Under the initiative, local producers will receive training from Turkish experts on new production techniques concerning fertilization, irrigation, pruning and pest control."]
[2018,"March","Sector development measures – Uzbekistan – oils/fats sector:  Local media reported that the Government has issued a road map for the accelerated development of the country’s oils and fats industry. The plan provides for the expansion of the industry’s resource base and the modernization of equipment used. Specific measures include a one-year exemption from the payment of value added tax for oil/fat manufacturers, beginning in January 2018. Furthermore, the Government would set a fix price for the sale of cottonseed oil to socially vulnerable parts of the population (see also MPPU Dec.’17). Such price would be determined taking into account manufacturers’ production and marketing costs."]
[2018,"March","Edible oil – quality issues:  In India, the Government of Kerala State banned 28 brands of edible oil based on probes showing that coconut oil bottled in Tamil Nadu had been adulterated with other, unspecified vegetable oils. Adulteration of coconut oil with cheaper produce is widely practiced in times of scarce coconut oil supplies (see also MPPU June & July’16). To address the problem, Kerala’s authorities plan to analyze edible oils systematically. Funds have been earmarked for setting up local laboratories, including mobile food testing units. On a related note, a coconut oil manufacturer in Kerala has launched officially certified coconut oil blends, allegedly guaranteeing both product safety and affordable prices. Reportedly, the blends containing either sunflower oil or palm olein are sold at, respectively, INR 126 and INR 105 per liter (USD 1.94 and 1.61), which compares to prices of over INR 200 (USD 3.07) for unmixed coconut oil.              "]
[2018,"March","Preferential trade – Turkey / Serbia:  Under a recently signed free trade agreement between Serbia and Turkey, Serbia will enjoy duty free quotas for exports of sunflower seed and crude/refined sunflower oil to Turkey. "]
[2018,"March","National palm oil certification schemes:  In Malaysia, as of January 2018, 59 extraction plants and 633 000 hectares of plantations (or 11 percent of the country’s total area under oil palm) are certified sustainable according to the country’s Malaysian Sustainable Palm Oil (MSPO) scheme. Back in August 2017, no more than 4 percent of the country’s total plantation area was MSPO-certified. MSPO certification is set to become mandatory during the course of next year. To facilitate this process, growers and millers undergoing certification are eligible for financial support from the Government (see MPPU Dec.’17). In Indonesia, where ISPO certification (Indonesia Sustainable Palm Oil) is mandatory since 2015, the latest available estimate puts certification at 17 percent of total plantation area. Reportedly, to raise the level of certification, the Government is working on a presidential regulation to strengthen supervision mechanisms and improve coordination between concerned government agencies."]
[2018,"March","RSPO news – production and sales data:  RSPO (Roundtable on Sustainable Palm Oil), the globally recognized, self-regulating industry body for world-wide palm oil certification, reported that, in March 2018, global annual production capacity of certified palm oil stood at 12.08 million tonnes, which is equivalent to about 17 percent of global production. Furthermore, total actual sales of certified product during 2017 were reported at 6.16 million tonnes, which compares to total supplies of 11.86 million tonnes. Consequently, similar to past years, approximately half of the available certified product did not find a buyer and was sold as conventional palm oil, i.e. without capturing a price premium. As for the different sale channels, during the month of January 2018, the three methods involving physical supply chains – i.e. segregated, identity-preserved and supply-mass-balanced transactions – accounted for 70 percent of total sales, while the remaining 30 percent were marketed via book&claim mechanisms (which contribute only indirectly to sustainable production systems). Such distribution marks a slight improvement over time, given that, back in December 2016, the corresponding shares stood at 65 percent and 35 percent."]
[2018,"March","RSPO news – advanced RSPO standard:  RSPO informed that a Colombian agri-business company completed the first sale of palm oil certified according to its RSPO-Next standard, a voluntary add-on module launched by RSPO in 2016 to meet the needs of members exceeding the body’s core sustainability standards (see MPPU Mar.’16). Reportedly, the audit process included certification and compliance with RSPO-Next requirements for the 122 smallholder farms that supply the company’s mill. The successful sale shows that some buyers are searching for palm oil produced according to the highest sustainability standards.    "]
[2018,"March","Palm oil sourcing policies:  New cases of global consumer goods companies/food manufacturers suspending their commercial relationship with specific palm oil suppliers over claims of unsustainable production practices have been reported. The companies cited concerns about allegations that certain suppliers were not complying with their sustainability policies and commitments. On a related note, global consumer goods company Unilever has publicly disclosed all the suppliers and mills it buys palm oil from – a list comprising more than 1400 mills and over 300 direct suppliers. By embracing complete supply chain transparency and strengthening collaboration with its partners and other stakeholders, the company hopes to be able to proactively identify problems and address them quickly and effectively. Apparently, businesses worldwide are faced with increasing pressure from governments, social society groups and consumers to disclose actions taken to ensure that their supply chains are free from unsustainable practices.         "]
[2018,"March","Pest and disease issues – clubroot, rapeseed:  In recent years, clubroot, a soil-borne disease affecting rapeseed and other cruciferous crops, has become a key concern to farmers, especially in Canada but also in parts of Europe. The clubroot pathogen is a fungus-like organism whose spores can survive in soil for up to 20 years. Reportedly, there are no cost-effective control measures that can remove the pathogen from a field once it has become infested. Methods to curtail the spread of the disease and reduce its incidence and severity include careful scouting and record keeping, sanitation, soil amendments, crop rotation and the use of resistant varieties. According to media reports, seed firms are struggling to develop new resistant varieties (a process that requires up to 10 years), because of the pathogen’s capacity to adapt quickly. To prevent rapid genetic shifts and subsequent loss of effective resistance, Canada’s rapeseed industry association recommended pursuing varietal resistance research judiciously within an integrated management approach that includes practicing a diverse crop rotation with at least two years between rapeseed crops. According to experts, Canada’s recent, successive record crops have been achieved in part by shortening crop rotation cycles."]
[2018,"March","Pest and disease issues – xylella, olive tree:  First detected in the South of Italy in 2013, xylella fastidiosa is regarded as a main threat to European olive cultivation (see also MPPU Jan.’18). Recently, the European Commission provided the following update regarding the spread of the disease:  i) Spain, the world’s largest olive oil producer, notified a first outbreak in 2016 in the island of Mallorca; as the pest subsequently spread across the Balearic Islands, in December 2017, the entire territory was declared as area under containment and movement of specified plants out of the Baleares is currently not authorized. In June 2017, the disease was also detected on the Iberian Peninsula, in Alicante (Valencia), where movement restrictions are in place; ii) in Italy, the demarcated area has been updated on several occasions and survey activities are ongoing; in May 2015, the infected zone was declared area under containment; movement of specified plants out of the demarcated area is currently not authorized; iii) in France, authorities reported a first outbreak on the Island of Corsica in 2015; since then, additional outbreaks have been detected in Provence-Alpes-Côte d'Azur (PACA); while survey activities continue, the entire territory of Corsica was declared as area under containment in December 2017, and the movement of specified plants out of Corsica and PACA is currently not authorized.; iv) in Germany, authorities notified an isolated case of the disease in June 2016 in Saxony; v) as for the rest of the EU territory, all member states must carry out annual surveys for the presence of the disease in their territory involving a list of specified plants.  On a related note, last December, the 10 countries most directly threatened by the disease agreed on a roadmap aimed at reinforcing measures to prevent and control the disease (see MPPU Jan.’18). The roadmap focuses on three main areas:  i) knowledge improvement through the support of applied research programmes; ii) increasing surveillance to ensure early detection and rapid eradication of new outbreaks; and iii) awareness raising and information actions.         \n"]
[2018,"March","Transport infrastructure – Brazil:  According to data published by Brazil’s national agency for waterway transportation, ANTAQ, the volume of soybeans and maize shipped through the country’s northern export corridors (known as ‘Arco Norte’) reached 51.2 million tonnes in 2017 – posting a year-on-year increase of 80 percent. Growing reliance of Centre-West grain-producing states on barge terminals in the Amazon Basin and seaports along the country’s Northern coast is said to go hand in hand with a decongestion in the country’s traditional southbound routes. Reportedly, last year, the Arco Norte accounted for 41 percent of Brazil’s combined soybean and maize shipments – compared to only 23 percent in 2010. After heavy industry investments, about 60 percent of Arco Norte’s total shipping capacity is reported to be in the hands of private companies. (See also MPPU June, July, Aug., Sep., Oct., Dec.’17 & Jan.’18)        "]
[2018,"March","Trade tools – futures markets:  On 28 February 2018, the Malaysian commodity exchange BursaMalaysia introduced a number of enhancement to its crude palm oil futures contract, including an increase in position limits, extended trading hours, additional tradeable contract months, and new product traceability requirements."]
[2018,"March","Trade tools – blockchain-based transaction:  Recently, global commodity trader Louis Dreyfus completed the first agricultural commodity transaction based on a blockchain-driven platform. The transaction involved a cargo of U.S. soybeans shipped to China, covering all aspects of the operation – from financing through to commercial contract execution and related logistical processes. The different parties – the trader, the buyer, the banks issuing and confirming the relevant letter of credit and other stakeholders – relied exclusively on the new platform and its digital technology. According to the trader, using the innovative tool greatly reduced time spent on processing documents and allowed for a larger trading scope. Reportedly, all participants achieved significant efficiency gains. Benefits listed included the ability to monitor the operation’s progress in real time, ease of data verification, reduced risk of fraud, and a shorter cash cycle. Allegedly, the platform’s success demonstrates the great potential of distributed ledger technologies to advance commodity trading and financing."]
[2018,"March","Seed market news – omega3-rich rapeseed:  Australian regulators approved genetically modified (GM) omega3-rich rapeseed for both human consumption and use in livestock/aquaculture feed (see also MPPU June’17). Hoping that the approval will smoothen regulatory reviews in other countries, the seed firm that developed the new product started planning the variety’s commercial release in Australia, the United States, Canada and possibly China. The company intends to produce the crop under a closed-loop grain handling and oil processing system. "]
[2018,"March","Seed market news – Argentina – royalty payments:  Last February, after protracted negotiations and the decision of U.S. seed company Monsanto to suspend sales of new soybean and maize varieties in Argentina (see MPPU June & July’16 and Feb. & July’17), the country’s main farmers and seed producers associations reached an agreement on the payment of royalties for GM seed varieties. According to local media reports, farmers have agreed to continue paying plant breeders’ rights when they replant GM seed – conceding that the country’s 1973 see law, which exempts farmers from paying royalties when they re-use seeds obtained from their own harvests, is no longer practicable. The two sides concurred that, when seeds are replanted, fix royalty payments will be applied during the first three years, following which, rates could be adjusted downward. Whether and when the country’s seed legislation will be modified accordingly remains to be seen. At any rate, the recent deal should allow Argentine farmers to regain access to the various state-of-the-art GM seed varieties. "]
[2018,"March","Seed market news – Brazil – seed patent dispute:  In Brazil, a federal court ordered that patent rights for Monsanto’s GM soybean variety Intacta-RR2-Pro (which was granted in 2012 for a period of 10 years) be revoked, citing a recommendation issued by Brazil’s patent regulator, INPI. In a written opinion, the patent agency backed the position of a domestic soybean growers association (Aprosoja), which claimed that the patent was inconsistent with national patent regulations. Monsanto intends to appeal the court order, which bars the company from collecting royalties on sales of the seed. According to industry estimates, about 20 million hectares are currently planted with the soybean variety in question, with each hectare planted generating royalty payments of about BRL 130 (USD 39.69).                    "]
[2018,"March","Biodiesel – industry news – sustainability certification:  A Finish company has gained Roundtable on Sustainable Biomaterials (RSB) certification for its production of biodiesel from brassica carinata oil in Uruguay. RSB is a European Commission-approved voluntary scheme that can be used to show compliance with the sustainability criteria of the EU’s Renewable Energy Directive (see MPPU Aug.’11)."]
[2018,"March","Biodiesel – industry news – low-quality feedstock:  Recent studies confirm that technologies for producing biodiesel from low-quality feedstock – such as low-priced waste oils – are now available and in use, offering alternative paths for biodiesel production. Reportedly, the most advanced and cost-effective methods to process low-quality feedstock employ liquid-formulated enzymes/lipases.        "]
[2018,"May","ARGENTINA – export tax collection:  From 6 April 2018, Argentina’s export tax on soybean and soybean products is applied at the date of shipment as opposed to the day a purchase contract is signed. The change allows exporters to take advantage of the monthly tax cuts that are under implementation since January 2018 (see MPPU Mar.’18), thus encouraging forward sales.","             "]
[2018,"May","BRAZIL – agricultural support measures:  In March, the country’s Agriculture and Livestock Ministry announced fresh funding for its Rural Insurance Premium Subsidization Programme, which is available to farmers growing soybeans and other oilcrops. Furthermore, the Ministry launched an on-line portal, ‘Macrologística’, designed to facilitate agribusiness through monitoring and dissemination of data on domestic production, storage and trade logistics. The portal also provides up-to-date information on bottlenecks along commodity value chains, optimum transport routes and new investment opportunities."]
[2018,"May","CHINA – agricultural support policies:  Government sources confirmed that agricultural support programmes providing farmers in the country’s north-eastern soybean growing provinces (Jilin, Heilongjiang, Liaoning and Inner Mongolia) with higher subsidies for planting soybean than for growing maize will remain in place during 2018/19 (see also MPPU June/July/Oct./Dec.’17 & Mar.’18). The support programme, which will cover about 2 million hectares in total, is aimed at encouraging crop rotation (with acreage shifting from maize to other crops, especially soybeans) and land fallow – amid efforts to reduce the country’s burdensome maize stockpile. According to observers, however, based on prevailing domestic prices, profits from growing maize could still be significantly higher than those from soybean – even allowing for increased soybean subsidies.           "]
[2018,"May","CHINA – food safety regulation:  China invited comments on its draft Code of Practice for the Prevention and Reduction of Aflatoxin Contamination in Food. The proposed regulation applies, inter alia, to groundnuts and cottonseed."]
[2018,"May","CHINA – trade policy:  On 4 April 2018, the Chinese Government published a provisional list of tariffs that, if implemented, would apply to selected agriculture and food imports from the United States –including soybeans. The duties would be introduced in retaliation of possible US import tariffs concerning a number of Chinese products. China – the world’s largest soybean buyer – satisfies 90 percent of its soybean requirements through imports, with US beans accounting for more than one-third of its purchases. Considering the importance of soybean trade for both countries, China’s announcement triggered temporary prices responses and shifts in buying patterns at the national and global level. The two countries are engaged in negotiations aimed at settling their trade dispute (which originated from a field unrelated to agricultural markets), in a bid to avert recourse to retaliatory tariff measures."]
[2018,"May","CHINA – tax policy:  On 1 May 2018, China’s value-added tax on sales and imports of agricultural products – including oilseeds, oilmeals and edible vegetable oils – has been lowered from 11 percent to 10 percent. The measure, which is part of a broader tax reduction package and follows a first, more substantial VAT cut in 2017 (see MPPU June’17), is aimed at facilitating  economic growth in the agricultural sector, especially in the processing industry.   "]
[2018,"May","COLOMBIA – biofuel policy:  On 1 March 2018, Colombia’s mandated blend limit for biofuel in petrol and diesel has been raised in a bid to curb CO2 emissions in the country’s cities and address oversupply problems that threaten to disrupt production of biofuels and their respective feedstock. The required mix of palm oil-based diesel in regular diesel has been raised to 10 percent and applies throughout the country. Previously, mandates ranged from 2 percent to 9 percent, depending on the region.     "]
[2018,"May","EUROPEAN UNION – biodiesel import restrictions:  Abiding by a ruling of the European Court of Justice (see MPPU Nov.’16), the European Commission has removed anti-dumping duties on biodiesel imports from 13 Argentine and Indonesian producers that were in place since 2013. The Commission had appealed against the ruling, but dropped the petition earlier this year. Also the WTO had ruled in favour of challenges filed by Argentina and Indonesia (see MPPU Nov.’16 & Mar.’18). Notwithstanding, last January, the Commission launched – upon request of the bloc’s biodiesel producers – a new investigation on whether Argentine producers benefit from state subsidies (see MPPU Mar.’18). Industry experts pointed out that the recent resumption of low-cost biodiesel imports from Argentina and Indonesia would impact profitability for European producers – possibly leading to production cuts and hence reduced uptake of rapeseed oil, the EU’s main biodiesel feedstock."]
[2018,"May","EUROPEAN UNION – olive oil labelling:  The European Commission invited public comments on two proposed amendments to the bloc’s labelling regulations for olive oil. One concerns information on certain physiochemical parameters when acidity levels are mentioned on labels and the other determines under which conditions the harvest year should be shown on product labels."]
[2018,"May","EUROPEAN UNION – pesticide regulation:  EU Member States’ representatives backed a proposal by the European Commission to further restrict the use of three substances known as nicotinoids, for which a scientific review by the European Food Safety Authority found that their outdoor use harms bees (see also MPPU Feb. & June’18). Nicotinoids have been widely employed in agriculture – in particular in rapeseed cultivation – over the past 20 years. The new restrictions go beyond the measures already in place since 2013, in that all outdoor uses of the chemicals will be banned. The regulation is expected to come into force by the end of the year. Individual Member States may grant emergency exceptions for restricted uses of the chemicals.             "]
[2018,"May","INDIA – public procurement policy:  According to local press reports, the Government of India is considering to reform the country’s public procurement scheme for agricultural crops. New procurement mechanisms under consideration would focus on all 23 crops for which minimum support prices (MSP) are set by the Government, including oilseeds – unlike the current practice where public procurement concentrates heavily on wheat and rice. Under India’s Price Support Scheme (PSS) also oilcrops, pulses and cotton are supposed to benefit from public procurement, but in practice public purchases of these commodities have been intermittent and hence insufficient to prevent farmers from making distress sales at harvest time (see also MPPU July/Dec.’17 & Mar.’18). Recognizing that the enforcement of MSPs requires coordinated efforts and cost sharing arrangements between individual states and the Centre, the Central Government pledged to reform the country’s PSS. Reportedly, in the future, local governments will be able to choose between three mechanisms: i) a Market Assurance Scheme involving decentralized, discretional procurement/disposal operations handled by state agencies, comprising direct payments to farmers; ii) a Price Deficiency Payment Scheme (PDPS), under which farmers are provided with the difference between market prices and MSPs, whenever market rates fall below the benchmarks; and iii) using private agencies to carry out routine acquisitions at MSP levels. Policy makers are still discussing how to share the financial burden of the proposed schemes between the Centre and individual states and how to address remaining institutional and technical challenges inherent to each system. Currently, a PDPS covering selected oilcrops is under implementation on a trial basis in Madhya Pradesh, while other states, most recently Odisha, engaged in temporary procurement operations (see MPPU Feb./Sep./Oct.’17)."]
[2018,"May","INDIA – export policy:  Exportation of vegetable oils is set to be liberalized further in India. After lifting the ban on bulk exports of selected vegetable oils in March 2017 (see MPPU Apr.’18), the Government now decided to allow bulk exports of all edible oils with the exception of mustardseed oil. Being an item of mass consumption in the country, mustard oil may only be exported in consumer packs up to 5 kg and at a minimum price of USD 900 per tonne. The new policy is aimed at encouraging oilseed production by opening additional marketing avenues for edible oils. Moreover, the measures may contribute to better utilization of idle capacity in the country’s edible oil industry. However, market experts do not expect sizeable increases in shipments in the near term, as domestic edible oil prices currently range significantly above world market levels."]
[2018,"May","INDIA – food standards:  New labelling and display regulations for pre-packaged foods proposed by India’s Food Standard and Safety Authority (FSSAI) envisage mandatory front-of-package declaration of nutritional data. Labels will have to include information on the amount of total fat and trans fats as well as on per-serving percentage contributions to recommended dietary allowances, including special mention when specific thresholds are exceeded. FSSAI also opened for comment proposals to: i) revise the existing standards for mustard/rapeseed oil, palm oil and hydrogenated cooking oil; ii) include peroxide values in the standard of all vegetable oils; and iii) issue new standards for the various fractions of palm oil. The various proposals are aimed at improving consumer information and allowing to ascertain oil authenticity, in addition to addressing industry needs."]
[2018,"May","INDONESIA – shipping regulations:  The Government of Indonesia delayed until 2020 regulations requiring exporters of palm oil to use exclusively Indonesia-flagged vessels. Aimed at fostering the local shipping industry and saving foreign exchange, the new rule was originally scheduled to take effect in April 2018. Reportedly, concerns over the availability of local vessels have led to the postponement in the implementation date."]
[2018,"May","INDONESIA – biofuel policy:  Biodiesel production will continue to enjoy government support in Indonesia. In 2018, producers of palm oil-based diesel are set to continue receiving subsidies, tied to government efforts to stimulate domestic demand for palm oil so as to prevent oversupply of the commodity and stabilize its price on the global market. According to media reports, official estimates place domestic biodiesel consumption at 3.06 million tonnes in 2018, compared to 2.24 million tonnes last year. Furthermore, next July, mandatory biodiesel use is set to be expanded to include the mining sector and a state-owned railway operator. Annual uptake by the mining and locomotive sector would amount to about 500 000 tonnes, while road transportation and power plants would absorb 2.55 million tonnes. Blending rates will range between 5 percent (locomotive), 10 percent (mining) and 20 percent (transport and energy sectors). Long-term plans to raise domestic admixture levels in the transportation and energy sectors to 30 percent are upheld. In the meantime, also exports of biodiesel may rise, following the recent elimination of the EU’s anti-dumping duties on Indonesian biodiesel.                                             "]
[2018,"May","INDONESIA – palm oil related measures –  Land governance:  The Government of Indonesia announced that a unified database integrating various land-use maps – including a map on oil palm plantations – will be completed later this year (see also MPPU Aug.’16). The new tool could be crucial in the management of Indonesia’s forests and natural resources. In particular, the integrated map could help identify overlapping land concessions and address the problem of illegal plantations inside forest areas."]
[2018,"May","INDONESIA – palm oil related measures – Replanting programme:  The Indonesian Government pledged to expand a country-wide oil palm replanting programme launched last year (see MPPU Dec.’17) to cover 185 000 hectares of smallholder plantations in 2018 – as opposed to the original target of 20 000 hectares. The ultimate goal is to replace palms on 5.61 million hectares across the country. The scheme’s objective is to foster output growth among smallholders by boosting their productivity level, thereby discouraging environmentally contentious expansion of planted area. Replacing palm trees older than 25 years with improved varieties could lift average smallholder yields from 2–3 tonnes of palm oil per ha to 4 tonnes. The Government’s replanting programme is entirely financed by Indonesia’s Oil Palm Plantation Fund (BPDP-KS), an instrument set up in 2015 to manage a new levy collected on the country’s palm oil exports. In fact, to date the bulk of BPDP-KS funds has been allocated to biodiesel subsidies – a policy that is being challenged by the country’s main union of palm oil smallholders. Recently, also the country’s anti-graft agency has called for a more balanced distribution of those funds among stakeholders. Reportedly, last year, BPDP-KS proceeds from levies collected on palm oil exports amounted to IDR 14.2 trillion (USD 1 billion)."]
[2018,"May","INDONESIA – palm oil related measures – Mandatory certification:  In Indonesia, small oil palm farmers have been given time until end 2020 to achieve ISPO (Indonesian Sustainable Palm Oil) certification. However, based on a recent study by Indonesia’s Bogor Institute of Agriculture, smallholders – who account for 40 percent of the country’s oil palm plantation area – may not be ready to adopt the national standard. Reportedly, small growers are faced with a variety of challenges, in particular a lack of assistance in adopting agricultural best practices and unclear land ownership status (NB: in order to qualify for certification, farmers are required to prove legal ownership of their land). Especially in those instances where smallholders manage plantations inside forest areas, obtaining the required land titles may prove difficult. Another problem is that many farmers lack access to ISPO-compliant seedlings and fertilizer (the use of which has been made mandatory in a bid to boost productivity on small farms). "]
[2018,"May","MEXICO – agricultural support policies:  Mexico’s federal programme to encourage domestic oilseed production (known under the name ‘Pro-Oleaginosas’) remains in place in 2018, with producer payments staying at MXN 700 (USD 35) per tonne of product delivered to domestic processors (as opposed to MXN 1500 provided two years back). ‘Proagro’, a scheme providing farmers with liquidity to invest in productive activities has also been confirmed, with per-hectare allocations for small, medium-size and large farm holdings raised by, respectively, 14 percent, 33 percent and zero percent. While a government scheme to stimulate forward sales also remains in place, market participants are reported to favour better-priced alternatives offered by the domestic and international market. "]
[2018,"May","REPUBLIC OF KOREA – trade policy:  After consultations with the President of Brazil, the Government of the Rep. of Korea announced its intention to restart trade talks with the Mercosur trade bloc in the first half of 2018, focusing, inter alia, on the bloc’s soybean and maize exports to the Rep. of Korea."]
[2018,"May","SENEGAL – market regulation:  The Government of Senegal signed a memorandum of understanding with industry stakeholders to regulate the marketing of raw and refined groundnut oil in the country. The agreement defines sale and purchase obligations of artisanal processors and industrial refiners, while the Government will be in charge of operating safety reserves and regulating imports. The initiative is aimed at improving domestic market transparency and efficiency while improving consumer access to edible groundnut oil."]
[2018,"May","THAILAND – biofuel policy:  With a view to support oil palm growers affected by depressed prices (stemming from burdensome domestic supplies), the Government of Thailand is planning to raise mandatory blending of palm oil-based biodiesel in the automotive and railway sectors from 7 percent to 10 percent. Performance tests of the higher blends are currently being conducted with support from the industry. According to the press, the shift to the higher blending rate is envisaged for early next year. In recent years, the country has seen repeated adjustments in mandated rates – both upward and downward – as the Government strived to stabilize domestic palm oil prices (see MPPU Sep.’16, Aug.’17 & Jan.’18)."]
[2018,"May","UNITED KINGDOM – biofuel policy:  On 15 April, a number of changes in the UK’s Renewable Transport Fuel Obligation (RTFO) have come into effect. Transport fuel manufacturers will be required to guarantee biofuel blending rates of at least 9.75 percent and 12.4 percent in, respectively, 2020 and 2032 – compared to the present target of 4.75 percent. At the same time, the new legislation establishes a 4 percent cap on the contribution of crop-based (or ‘first generation’) biofuels until 2021, after which thresholds of 3 percent and 2 percent will apply in, respectively, 2026 and 2032. RFTO will also, for the first time, support and reward the production of sustainable renewable aviation fuel.        "]
[2018,"May","UNITED STATES – biofuel policy:  From 1 May, the state of Minnesota requires petroleum diesel to be blended with 20 percent biodiesel during the April–September period – exactly double the previous blending requirement of 10 percent. During the winter months, the mandate is set to revert back to 5 percent. To implement the higher requirements, state officials must ensure that the following conditions are met: sufficient feedstock supply; adequate blending infrastructure; and the existence of tailored fuel standards."]
[2018,"May","UNITED STATES – biodiesel import restrictions:  In April, the U.S. International Trade Commission asserted that biodiesel imports from Argentina and Indonesia have harmed the US industry, thereby paving the way for the application of anti-dumping duties as determined by the U.S. Department of Commerce last February (see MPPU Mar.’18). According to press reports, Indonesian biodiesel exporters reacted by filing an appeal to the U.S. Court, while the Indonesian Government is considering to submit the case to the World Trade Organization."]
[2018,"May","VIET NAM – import policy:  In line with provisions of a number of regional and bilateral free trade agreements concerning the country, the Government of Viet Nam lowered or eliminated the nation’s import tariffs on oilseed and oilseed products starting in January 2018. Countries or country groups benefitting from the tariff adjustments include:  ASEAN, Australia, Chile, China, EAEU, India, Japan, the Rep. of Korea and New Zealand.                  "]
[2018,"May","GMO approval – Argentina – GM soybean:  Cultivation of a new GM soybean variety resistant to herbicides containing glyphosate, glufosate and isoxaflutole (‘MTS-FG072’ owned by Bayer SA) has been approved in Argentina. The approval comes on the heels of a long-awaited agreement sealed last February between the Government and private seed companies regarding royalty payments, which paved the way for new seed varieties to reach Argentina’s farmers (see MPPU Mar.’18)."]
[2018,"May","GMO approval – Brazil – GM soybean: Three new GM soybean varieties (dicamba/glyphosate resistant ‘Intacta2Xtend’ by Monsanto, and two lines of high-oleic acid event ‘DP-305423-1’ by DuPont) have received regulatory approval in Brazil. Full commercial launch of the new varieties is expected in about 2 years, pending the results of farm trials and the outcome of regulatory reviews in key soybean import markets."]
[2018,"May","Variable palm oil export tax – Indonesia, Malaysia:  In Indonesia, where benchmark values for palm oil remained below the threshold level of USD 750 per tonne, the tax on crude palm oil exports has been kept at zero for both April and May – marking the thirteenth month in succession with no export tax. Meanwhile, Malaysia extended the 3-month tax suspension introduced in early January until the end of April, in a bid to maintain Malaysian palm oil exports competitive (see MPPU Mar.’18). According to the Malaysian Palm Oil Board, export taxation has resumed on 1 May, with rates set at 5 percent for both May and June."]
[2018,"May","Sector development policies – Uganda – oil palm:  The Government of Uganda intends to expand its efforts in promoting oil palm cultivation across the country in partnership with UN-agency IFAD and a group of private investors. As part of the country’s Vegetable Oil Development Programme, oil palm cultivation has been developed since 2005 in two districts (Kalangala and Buvuma) on an area of 10 000 hectares, comprising both nucleus estates and smallholder farms. Reportedly, the project attracted multiple investments along the palm oil value chain, creating jobs and improving local livelihoods. Under a second phase, oil palm cultivation is expected to concentrate on four regional hubs, covering 43 new districts. The initiative has not been spared from scrutiny by civil society groups, which identified a number challenges regarding the project’s environmental and social sustainability."]
[2018,"May","Sector development policies – Pakistan – olive oil:  Public efforts to promote olive tree cultivation continue to be pursued in different parts of the country under the oversight of Pakistan’s Agricultural Research Council (see MPPU Oct.’15 & Feb./Sep.’16). In Punjab province, free-of-charge distribution of saplings is continuing in the Pothohar Plateau and the local government has confirmed its target of planting 2.4 million trees by 2020. Eligible growers are given access to subsidies and training programmes. Elsewhere, in Balochistan, 120 000 trees are being planted, with olive plantations expected to cover an area of approximately 5 700 hectares, while, in Gilgit-Baltistan, government officials announced plans to plant three million olive trees as part of an environmental conservation project. These and parallel initiatives concerning rapeseed, sunflowerseed and oil palm, are all aimed at lowering the country’s dependence on vegetable oil imports."]
[2018,"May","Private sector – overseas investments – China / Brazil:  A consortium led by state-owned China Communications Construction Company (CCCC) has begun construction of the port of São Luís in Brazil’s northeastern state of Maranhão. The fresh investment in Brazil’s port infrastructure is expected to further enhance the country’s ability to ship grains/oilseeds via the rapidly expanding northern export corridor known as ‘Arco Norte’ (see also MPPU Mar.’18). At the same time, the initiative will allow China to further expand its presence in the country that satisfies half of China’s soybean import requirements, supplying about 50 million tonnes annually. The investment follows earlier Chinese ventures in Brazil’s infrastructure and grain trade (see MPPU Feb.’16, June/Oct./Dec.’17 & Jan.’18). On a similar note, private sources suggested that, in 2017, China’s state-owned grain trading group COFCO International advanced to fourth position in the ranking of Brazilian exporters of soy, soymeal and maize – after Bunge, Cargill and Marubeni and before Louis Dreyfus and ADM."]
[2018,"May","Private sector – overseas investments – Thailand / Lao People’s Democratic Republic:  A Thai palm oil trader is planning to set up an oil palm plantation and a processing unit for biodiesel production in neighbouring Laos. Reportedly, the move is driven by a lack of appropriate opportunities – in particular the limited availability of land for plantations – in Thailand. Reportedly, the Thai company is also engaged in R&D work, focusing on the development of oil palm varieties that are tolerant to the drier weather conditions prevailing in Laos."]
[2018,"May","Export routes – Brazil:  Brazil’s Aprosoja, the Association of Soybean and Maize Producers of Mato Grosso, signed an agreement with the Panama Canal Authority to promote the recently expanded Central American waterway as a key route for grain shipments travelling from Northern Brazil to destinations in the Pacific Ocean. Under the agreement, ways to increase the Canal’s participation in Brazil’s rising grain exports will be explored, focusing on the on-going expansion of shipments out of Brazil’s new northeastern terminals, which are closer to the Panama Canal (see MPPU Mar.’18). For the time being, the bulk of Brazil’s grains are shipped from the country’s southern ports and the Atlantic Ocean. However, with regard to sales to Asia, availing of the Canal has the potential to reduce total travel time significantly. The new partnership will concentrate on Panamax vessels, given the similarity between the drafts in the Amazon River ports and the Canal’s locks. Reportedly, the agreement is the first memorandum of understanding signed between the Panama Canal and a partner in a Latin American country."]
[2018,"May","Biodiesel – sustainability certification:  A Finish company has gained certification by the Roundtable on Sustainable Biomaterials (RSB) for both sustainability and low indirect-land-use-change risk (ILUC) regarding its biofuel production from crude tall oil. RSB’s double certification allegedly minimizes the risk of biofuels causing indirect impacts such as deforestation or increased food prices in third countries."]
[2018,"May","National palm oil certification – Malaysia:  In Malaysia, a large palm oil plantation company joined forces with the country’s Palm Oil Certification Council (MPOCC) to help all of its suppliers obtain certification by the end of 2019 – the date by which all producers are required to comply with the national MSPO (Malaysian Sustainable Palm Oil) standard. The partnership’s objective is to engage, share knowledge and lend support to suppliers while they prepare for mandatory MSPO certification. Reportedly, more than 260 mill suppliers are going to benefit from the initiative."]
[2018,"May","RSPO initiatives – Developing country markets:  The Roundtable on Sustainable Palm Oil (RSPO), a global standard setting body for palm oil, signed an agreement with China’s Chamber of Commerce for Foodstuffs and Native Products to promote initiatives related to sustainable palm oil. In particular, the two institutions agreed to cooperate on promotional activities, exchange visits and the preparation of recommendations for policy makers. Generally, in developing countries – including China, the world’s second largest importer of palm oil – awareness of and demand for certified sustainable palm oil tends to be considerably lower than in developed nations."]
[2018,"May","RSPO initiatives – Member accountability:  RSPO reported new efforts to ensure that grower members regularly submit detailed data regarding their concessions. The organization considers access to such information as a prerequisite for monitoring its members’ environmental accountability. RSPO intends to compare member data with satellite images and other geospatial information with a view to facilitate timely assessments of potential cases of environmental non-compliance. RSPO also informed that it is working on means to determine whether plantation owners manage any HCV (High Conservation Value) areas effectively. Through these measures, RSPO hopes to strengthen the credibility of its certification, verification and grievance systems.    "]
[2018,"May","Palm oil sourcing and retail practices – BASF:  German chemical company BASF pledged that, in the course of 2018, it will offer palm-based products for the cosmetics industry exclusively as certified sustainable. The company envisages to source its palm and palmkernel oil via the RSPO ‘Mass Balance’ standard, one of RSPO’s supply chain models that support the physical flow of certified raw materials. Furthermore, the company informed that, in 2017, it managed to trace almost 80 percent of its overall oil palm exposure of more than 500 000 tonnes."]
[2018,"May","Palm oil sourcing and retail practices – Greenpeace:  According to a survey conducted by Greenpeace, a number of global consumer goods companies declined to disclose where they source their palm oil from – despite corporate pledges to achieve 100% traceability by 2020 (in support of commitments to stop buying from companies that apply unsustainable production methods). In this regard, Greenpeace renewed its call for brands to actively support the transformation of the industry by sourcing only from traders/suppliers able to prove that all the palm oil they sell comes from producers verified as compliant with ‘no deforestation–no peat–no exploitation’ standards. Since the publication of Greenpeace’s report, one of the surveyed companies fully disclosed its sources of supply, welcoming the NGO’s request for further supply chain transparency, which the company viewed as an essential component of sustainable and responsible sourcing. "]
[2018,"May","Palm oil sourcing and retail practices – Retail sector:  In the EU, two retail chains decided to remove palm oil from their own-brand food products, citing concerns over growing consumer apprehension about the use of allegedly unsustainable production practices in producing countries"]
[2018,"May","Peatland development:  Environmental advocacy group Rainforest Action Network claimed that approximately 10 000 hectares of peat forest have been cleared illegally in Borneo, Indonesia, for future palm oil plantations – despite national regulations as well as company commitments against further peat development and deforestation. Reportedly, most of the concerned land bank was marked as ‘peatland prioritized for protection’ on maps prepared by Indonesia’s Peat Restoration Agency. "]
[2018,"May","Sustainable soybean production:  In Brazil, a coalition of traders, environmental groups, research institutes and government departments launched a tool designed to help producers identify already cleared land to plant soybeans in the country’s Amazon and Cerrado biomes. The group claims that the tool can help participants in the soybean value chain expand soybean cultivation in a sustainable way, thereby containing forest degradation and other environmental/social risks. Economic viability considerations are also captured by the tool, as information on a location’s yield history, its logistical features and similar parameters is gathered by the system. One of the tool’s main values is seen in bringing together information from multiple sources on one single platform. Reportedly, there are plans to expand coverage by including Argentina’s Chaco region, another zone where soybean expansion is associated with environmental degradation risks."]
[2018,"May","Certified organic soybean:  In Togo, a group of agricultural entrepreneurs is planning to market 10 000 tonnes of certified organic soybean in the 2018/19 season. Reportedly, a number of NGOs and government agencies are backing the initiative by providing assistance in regard to business plan development and provision of quality seed.   "]
[2018,"May","Fraudulent labelling – vegetable oil:  A new fraud case concerning olive oil has been reported from China. According to media sources, a provincial food safety office uncovered a fraud scheme in which cooking oil companies misled consumers by deliberately overstating the percentage of olive oil contained in bottled oil blends. In general, olive oil is valued by consumers for its health properties and fetches significant price premiums over other edible oils. China’s imports of olive oil have risen constantly in recent years."]
[2018,"May","Research and product development – Carinata meal:  New strains of brassica carinata, an oilcrop that strives in arid climates and on marginal farmland not suited for other agricultural crops, may offer a high-protein alternative feed ingredient to rapeseed meal, according to a group of scientists in Canada (see also MPPU June’17). Analyses of the new strains’ chemical profile, anti-nutrient compounds, energy values and protein fractions seem to suggest that carinata meal can improve crude protein levels and other milk values in cows (compared to rapeseed meal). To date, most research efforts on industrial applications for carinata have focused on uses of its non-edible oil as feedstock for biofuels, especially aviation fuel (see MPPU Dec.’17)."]
[2018,"May","Research and product development – Non-GMO oilseed emulsifier:  Global agribusiness firm Cargill started selling certified GMO-free, de-oiled rapeseed lecithin on the European market. Used as emulsifier in the bakery and food snack industry, the product is said to offer comparable functionality to conventional GMO soy-based lecithin."]
[2018,"May","Research and product development – High-oleic soybean/soyoil:  Following the EU’s regulatory approval of DuPont’s high-oleic soybean variety ‘Plenish’ in December 2017 and China’s import authorization for Monsanto’s ‘VistiveGold’ high-oleic soybeans in mid-2017, the US industry expects worldwide production, trade and consumption of high-oleic soybean oil to take off in the coming years. In the United States, where high-oleic soybean varieties have been planted on 250 000 hectares 2017, sowings are projected to climb to 6.5 million hectares by 2027. High-oleic soybean oil – which is deemed to be more stable and offer improved functionality and nutritional properties than conventional soyoil, without requiring partial hydrogenation – is expected to be in high demand, given that the U.S. Food and Drug Administration mandated the complete removal of partially hydrogenated oils from the country’s food supply chain by June 2018 (see also MPPU June’13 & Apr./July 2015)."]
[2018,"May","Research and product development – Sunflower-based food-grade protein: A Russian firm developed a process to produce high-value food-grade protein from sunflowerseed press cake, a by-product of oil production that is normally used as feed. Based on mechanical separation and membrane filtration processes, the technology developed by the company removes fibre, polysaccharides and fat to obtain concentrates with up to 95 percent protein content. The latter can be used in sports nutrition products and various functional food products.Research and product development"]
[2018,"May","Research and product development – Olive waste-based feed:  An Irish firm claims to have developed a process for turning olive waste products into animal feed. Reportedly, olive feed can significantly improve the flavour, tenderness and nutritional profile of meat, by increasing the levels of oleic acid, monounsaturated fat and glutamic acid. The initial target for the new feed is Japanese Wagyu beef. The new feedstuff is conceived as a finishing feed, owing to its high caloric content and ability to support weight gain. Waste from olive oil extraction processes is normally an environmental pollutant that is subject to strict disposal regulations."]
[2018,"May","Research and product development – Gene-editing:  Seed companies are showing increased interest in gene-editing techniques, as opposed to genetic modification methods (see MPPU Dec.’16 & Jan.’18). Monsanto informed that it entered a partnership with a start-up company to advance agricultural R&D on soybean, rapeseed and other crops by leveraging gene-editing technologies. Allegedly, the technology allows to precisely and rapidly develop improved crop varieties, without making recourse to DNA transfer within and across species boundaries. Therefore, gene-editing could help meet growing consumer demand for GMO-free farm products."]
[2018,"May","Xylella fastidiosa:  Recently, two additional manifestations of the bacterial disease that threatens olive cultivation in the EU have been reported from Spain, one in the outskirts of Madrid and the other in Andalusia (see also MPPU Mar.’18). Andalusia is Spain’s leading olive growing region, producing close to 1 million tonnes of olive oil, or almost one-third of global production. Meanwhile, the number of infected trees in Italy’s containment zone is reported to have increased further, while on the French island of Corsica xylella has been detected for the first time on olive trees. Researchers have identified cicada and spittlebug as common vector insects responsible for the spreading of the disease."]
[2018,"May","Futures markets – United States:  The Chicago Mercantile Exchange (CME Group) has raised the maximum daily price change permitted on its soybean contracts by 10 US cents to 75 US cents per bushel, while the limit for soymeal has been increased by USD 5 to USD 25 per tonne."]
[2018,"May","Futures markets – Singapore:  The Asia Pacific Exchange (Apex) has been approved by Singapore’s monetary authority to operate as the city-state’s third derivative exchange and clearing house. Reportedly, Apex will commence trading in the second quarter of 2018, starting with a USD-denominated and physically delivered futures contract for palm olein."]
[2018,"May","Futures markets – Malaysia:  Malaysia’s commodities futures exchange Bursa Malaysia Berhad announced a number of changes to its crude palm oil contract, namely:  increased position limits; extended trading hours; a more flexible trading tenure; and new product traceability requirements."]
[2018,"August","ARGENTINA – biofuel policy:  In May, the Argentine Government raised the export tax on (soybean oil-based) biodiesel from 8 percent to 15 percent, effective 1 July 2018. The upward adjustment was aimed at bringing the tax closer to the export duty for soybean oil, which, in May, stood at 24.5 percent. Past duty differentials were among the reasons that led the United States to impose countervailing and anti-dumping duties on biodiesel imports from Argentina and the EU to launch a new investigation on whether Argentine producers benefit from state subsidies (see MPPU May’18). The higher export duty is expected to make it more difficult to sell Argentine biodiesel to countries where blending occurs on a discretionary rather than mandatory basis. Regarding Argentina’s internal market, private sources reported that the Government is considering to raise the country’s mandatory biodiesel blending rate from currently 10 percent to 12 percent (and eventually 15 percent), in a bid to foster domestic consumption.  "]
[2018,"August","BRAZIL – transportation policy:  In May, a nationwide 10-day strike by Brazil’s truck drivers to protest high fuel prices paralysed large parts of the economy. Reportedly, the country’s agricultural production, processing, distribution and exportation networks faced serious disruptions. In an effort to appease truckers, the Brazilian Government introduced temporary reductions in fuel taxes and imposed minimum freight rates. The latter measure has been challenged in the country’s Supreme Court by agriculture and industry groups. Freight costs play a crucial role in many sectors because Brazil’s transport matrix is highly dependent on road transport. Reportedly, uncertain about how transport costs are going to develop, farmers are delaying purchases of fertilizers and other inputs for the next season, while traders are reluctant to sign forward contracts for the forthcoming crop – despite expectations of stronger sales due to the ongoing U.S.-China trade dispute. Private sources reckon that the current, state-imposed minimum freight rates push up average transportation costs for soybean and maize by 17–28 percent."]
[2018,"August","BRAZIL – agricultural policy:  The Brazilian Government presented its agricultural support programmes for 2018/19. The package envisages an increase in outlays for the following schemes: i) farm loans (including a downward correction in concessional interest rates and greater attention to: investments in on-farm grain storage, low carbon agriculture and the livestock/aquaculture sector); ii) marketing support programmes; and iii) crop insurance systems. The soybean minimum reference price to be used under the Government’s income protection programmes has been raised by 2.4 percent to BRL 36.84 per 60 kg (USD 157 per tonne), which compares to an average increase across entitled commodities of 6.5 percent. "]
[2018,"August","CANADA – transportation policy:  Canada’s federal Government renewed and expanded the country's transportation law (known as Transportation Modernization Act), to ensure that Canadian farmers have timely access to reliable rail services (including under adverse weather conditions), while preserving shipping rate competitiveness and providing sufficient economic incentives for rail companies to continue investing in rail infrastructure. "]
[2018,"August","CHINA – agricultural policy:  Private sources reported that government efforts to stimulate soybean cultivation in China’s northeastern provinces have been stepped up this year. Reportedly, in Heilongjiang and Jilin, this year’s area-based payments will amount to CNY 350 per mu (USD 763 per ha). The payment comprises: i) a soybean producer subsidy of CNY 200, which exceeds payments provided in 2016 and 2017 by, respectively, 15 and 70 percent and is twice the amount provided to maize producers; and ii) a CNY 150 premium for farmers that plant soybeans instead of maize (see also MPPU Oct./Dec.’17 & May’18). Based on market prices observed in early May and depending on yield levels, the CNY 350 per mu subsidy is estimated to add 50–75 percent to the gross income per mu from growing soybeans. The provincial soybean-planting campaigns represent a continuation of China’s 5-year structural adjustment policy to shift land from maize to alternative crops. On the other hand, this year’s higher payments have also been linked to: i) a drop in the domestic soy/maize price ratio, which risked eroding the profitability of soybeans for Chinese farmers; and ii) increased policy efforts to reduce China’s reliance on soybean imports – also in light of the on-going Sino-US trade dispute. While official sources have reported a further expansion in the country’s soybean acreage this season, some private sources questioned the Government’s estimates.        "]
[2018,"August","CHINA – government auctions:  This year, public sales from state-hold inventories of soybean and soybean oil started in June, whereas those of rapeseed oil resumed – after a first round in January and early February – in July. As for soybeans and soybean oil, up to end-July, total volumes offered amounted to, respectively, 3.1 and 0.3 million tonnes, of which 33 percent and 19 percent, respectively, have found a buyer. The average price achieved for soybeans was CNY 3 008 (USD 437) per tonne, and CNY 5 001 (USD 727) per tonne for soybean oil. Regarding rapeseed oil, in the first round, total offers, the actual purchase rate and the average price achieved amounted to, respectively, 212 000 tonnes, 98 percent, and CNY 6 211 (USD 902) per tonne, whereas the corresponding figures for the month of July were 122 000 tonnes, 47 percent and CNY 6 039 (USD 877).","                "]
[2018,"August","CHINA – import policy:  China announced the removal, as of 1 July 2018, of tariffs on a large number of products – including soybeans, soybean meal, rapeseed and fishmeal – imported from Bangladesh, India, the Lao People’s Democratic Republic, the Republic of Korea and Sri Lanka. The measure follows amendments in trade facilitation instruments under the Asia-Pacific Trade Agreement (APTA) that were planned since March 2018. For the above listed commodities, the tariffs applied prior to the removal were the Most Favoured Nation (MFN) rates of, respectively, 3 percent, 5 percent, 9 percent and 2 percent. Considering that, in recent years, none of the five trade partners sold substantial amounts of the named commodities to China, the tariff removal is unlikely to impact China’s trade, at least in the near term – even against the backdrop of the on-going Sino-US trade dispute (see below) and its repercussions on China’s sourcing of soybeans and other feedstuffs.        "]
[2018,"August","CHINA / KAZAKHSTAN – bilateral trade arrangement:  According to media reports, the two countries agreed to relax sanitary requirements related to agricultural product trade – a development that could boost Kazakhstan’s shipments of rapeseed and rapeseed meal to China. (See also MPPU Jan. & Apr.’17).   "]
[2018,"August","EURASIAN ECONOMIC UNION – food safety standards:  As of 1 January 2018, in the Russian Federation and the remainder of the Eurasian Economic Union, the maximum permitted percentage of trans fats in food product has been set at 2 percent of total fat content. Lowered gradually from 20 percent in 2013, the new threshold applies to margarines, fat-vegetable spreads and rendered mixtures, milk fat substitutes, cacao butter and cacao butter equivalents. Trans fat levels as a percent of total fat must be indicated on product labels.        "]
[2018,"August","EUROPEAN UNION – agricultural relief measures:  On 2 August, the European Commission announced set of support measures for European farmers affected by the current season’s extreme drought. Farmers will be allowed to receive their direct and rural development payments earlier than scheduled and have been granted more flexibility in using fallow land and other areas that would normally not be available for production in order to feed their animals. Additional support can be provided under the existing state aid rules. In particular, extraordinary purchases of fodder may qualify for aid in cases of either material damage or income loss. Member states will be allowed to provide compensation for damage without notifying the Commission. The EU’s Rural Development programme also provides a range of possibilities to assist farmers facing exceptional circumstances."]
[2018,"August","EUROPEAN UNION – biodiesel import restrictions:  In the context of on-going trade investigations regarding the alleged subsidization of biodiesel production in Argentina, the European Commission ordered to register, as of 25 May 2018, all imports of biodiesel from Argentina. While the decision does not prejudge the outcome of the case, the measure would facilitate retroactive application of any future anti-subsidy measures. Reportedly, since the investigation’s launch last January, biodiesel imports from Argentina have increased sharply, especially after the bloc removed anti-dumping duties that had been in place since 2013 (see MPPU May’18).  "]
[2018,"August","EUROPEAN UNION – biofuel policy:  In mid-June, the EU’s Parliament, Council and Commission reached a provisional, informal agreement regarding the bloc's renewable energy policy after 2020. The package, which is part of a broader policy aimed at reducing the bloc’s GHG emission levels comprises: i) binding overall and sector-specific targets for renewable energy use; ii) caps on the amount of crop-based (or ‘first generation’) biofuels in transport at 2020 levels, with a maximum of 7 percent; iii) ambitious and binding targets for ‘advanced’ biofuels; iv) significant, mandatory presence of waste-based biofuels, such as used cooking oil and animal fats; and v) a freeze on the use of biofuels that bring about strong indirect land use changes (ILUC) at 2019 levels, with a mandatory phase-out by end-2030. With regard to the latter point, the European Commission has been assigned the responsibility to develop – by February 2019 – a precise methodology to define the ‘green credentials’ of individual biofuels, so as to distinguish high-risk ILUC biofuels produced on high carbon-stock land from others produced with lower risk of causing adverse effects. While it remains to be seen how individual biofuel feedstock will be affected under the new classification, Malaysia and Indonesia stated that they would consider retaliatory measures in case palm oil-based fuel fell under the ‘high-ILUC/low sustainability’ category, adding that they consider the EU’s envisaged measures are discriminatory. Meanwhile, the two palm oil producers intensified their efforts to identify new markets for their biofuel exports. Furthermore, representatives from the EU biofuel industry questioned the rationale for restricting the contribution of those first generation biofuels that can be produced in a sustainable manner. The text of the new EU directive still has to be formally approved by the European Parliament and the Council, following which the bloc’s member states would have 18 months to transpose the directive into national law."]
[2018,"August","INDIA – farmer support measures – Support prices:  The Indian Government significantly raised the minimum support prices for the major 2018/19 Kharif crops. The announcement came at a time when plantings were already in full swing. For oilcrops, the new per-tonne support prices (including crop-specific bonuses) and the corresponding year-on-year increases (in percent) are as follows: soybeans INR 33 990 (USD 485), 12 percent; groundnuts INR 48 900 (USD 698), 10 percent; sunflowerseed INR 53 880 (USD 769), 31 percent; sesameseed INR 62 490 (USD 892), 18 percent; and nigerseed INR 58 770 (USD 839), 45 percent. According to private sources, actual market prices stood well below the new support prices for groundnuts and sunflowerseed, but well above for soybeans and sesameseed. The support prices for cereals, cotton and pulses also saw important increases, possibly intensifying competition for acreage. Although support prices are announced for a large number of crops, public procurement operations are mostly limited to rice and wheat (see also MPPU May’18). "]
[2018,"August","INDIA – farmer support measures – Public procurement (federal level):  According to the local press, in the 2017/18 season, the Central Government procured a record amount of pulses and oilseeds from farmers at minimum support prices. Following bumper 2017/18 harvests, prices of most crops fell below the government-announced support prices. Reportedly, until 22 June 2018, total procurement of oilseeds at support prices amounted to 1.97 million tonnes or 6.4 percent of total production."]
[2018,"August","INDIA – farmer support measures – Public procurement (state level):  To shield growers from sharp price drops, in Haryana State, procurement of sunflowerseed at government-set minimum prices started on 11 June, i.e. ahead of the originally scheduled date."]
[2018,"August","INDIA – food safety and standards – Labelling requirements:  According to media reports, the country’s Food Safety and Standards Authority (FSSAI) proposed to make it mandatory for manufacturers of blended oils to disclose the exact blend in percentage terms on product labels and to add the following mention: ‘Blended Edible Vegetable Oil’ and ‘Not to be sold loose’. The measure is aimed at enabling consumers to make informed choices. FSSAI also issued new norms, effective 1 July, for food business operators to monitor the quality of edible oils during frying."]
[2018,"August","INDIA – food safety and standards – Product ban:  On 2 June, the food safety authorities of Kerala State banned the manufacture, storage, sale and distribution of 45 brands of coconut oil with immediate effect, according to local press reports. The decision was taken after samples were found adulterated and unsafe for human consumption (see also MPPU Mar.’18)."]
[2018,"August","INDIA – biofuel policy:  The Food Safety and Standards Authority of India (FSSAI) initiated discussions with India’s Biodiesel Association on setting up a system for the collection of used cocking oil and its conversion into biodiesel, local media reported. Private sources estimated that, out of 23 million tonnes of cooking consumed annually in the country, up to 3 million could be recovered and used as biodiesel feedstock.       "]
[2018,"August","INDIA – import policy:  In June, the Indian Government further raised the import duties for crude and refined soybean, sunflower, groundnut and rapeseed oil (see also MPPU Mar.’18). At 35 percent for refined grades and 45 percent for crude grades, the tariffs for the referenced oils now stand at the highest level in more than a decade – just as the country’s palm oil import tariff. The measure is aimed at curbing imports while protecting the interests of the country’s oilseed growers and processors. Unexpectedly, since the hike in duties, sharp increases in edible oils deliveries from Bangladesh and Sri Lanka have been reported, mainly involving shipments of palm oil originating in Indonesia and Malaysia. Apparently, traders have taken advantage of the South Asian Free Trade Agreement (SAFTA), which, by maintaining a duty-free zone in the region, allowed traders to circumvent India’s high import tariffs."]
[2018,"August","INDONESIA – biofuel policy:  Further to its recent decision to extend mandatory biodiesel use to the country’s mining and railway sector, the Indonesian Government plans to require all diesel fuel sold in the country to contain biodiesel, starting 1 September 2018 (see also MPPU Mar. & Apr.’18). While, currently, blending obligations only apply to subsidized diesel outlets, under the new rule, fuel pumps countrywide would only be allowed to sell diesel blends containing biodiesel. Besides allowing Indonesia to lower its mineral fuel imports (and thus reduce the nation’s current account deficit), the envisaged measure is aimed at boosting domestic palm oil consumption, thereby helping stabilize palm oil prices and lower the oil palm industry’s dependence on the export market. Moreover, the biodiesel industry’s capacity utilization rate, which currently is lingering around 25 percent, would improve. Reportedly, encouraged by a more favourable mineral oil-to-palm oil price ratio, the Government is also considering to bring forward the planned shift in the country’s mandatory blending rate, from 20 percent to 30 percent, to 2019 (i.e. one year earlier than anticipated) – despite resistance from both regulators and the automotive and oil industries. Furthermore, the Government started offering incentives for the development of a new 100% palm oil-based fuel called “green diesel”. Produced using hydro-treated vegetable oils, the fuel is said to be free from the adverse effects found in esterification-based biodiesel (see also MPPU Nov.’15). With regard to total domestic consumption, the latest official estimates project next year’s biodiesel use at 5.3–5.4 million tonnes, compared to estimates for 2018 ranging between 2.9 and 3.5 million tonnes. Actually, according to observers, the existing B20 target has yet to be met fully. The delay is attributed to logistical bottlenecks and to past gaps between mineral oil and palm oil prices, which reduced the effectiveness of the financial support provided to the industry. "]
[2018,"August","MALAYSIA – biofuel policy:  Malaysia’s long-standing plan to raise the country’s mandatory blending rate for biodiesel is back on the agenda. The planned move from B7 to B10 (which would require transport diesel to be mixed with 10 rather than 7 percent of palm oil-based biodiesel) has been postponed several times, as large price discounts of mineral oil over palm oil made implementation of higher mandates costly (see MPPU Dec.’16). Recently, however, the price gap between mineral oil and palm oil has narrowed, making higher blending rates more viable. According to official sources, the Government could outline its plans on how to implement new mandates by the end of this year. Higher blending rates would allow to reduce domestic palm oil supplies, hence lowering stocks and supporting prices. The country’s biodiesel industry confirmed that it could raise output anytime, as producers are currently operating well below installed capacity.    "]
[2018,"August","MEXICO – farmer support measure:  In May, Mexico’s Agricultural Ministry increased the target prices used to determine support payments under its income target programme for grain and oilseed farmers in the 2017/18 fall/winter and 2018/19 spring/summer seasons. Reportedly, target prices have been raised to offset increases in production costs. Oilseed producers are expected to benefit the most, with target prices for soybean, rapeseed and safflower set at MXN 8 400 per tonne (USD 442), up 27 percent from last season’s level. In addition, to help producers cope with depressed crop prices, farmers who chose to sell maize, wheat, sorghum and soybeans through the Ministry’s forward contract programme will be entitled to subsidies. Under the latter programme, the bulk of the funds has been earmarked for grain producers.                 "]
[2018,"August","PAKISTAN – import policy:  Pakistan’s fiscal budget for 2018/19 includes provisions for a rise in the custom duty on crude soybean oil from formerly PKR 9 050 per tonne to PKR 12 000 (USD 73 and 97 respectively). In addition, the Government envisaged an increase in the ‘additional custom duty’ applied to all oils and fats from 1 percent to 2 percent. The measures are aimed at protecting local soft oil production.   "]
[2018,"August","THAILAND – food safety standards:  Thailand’s ban on the production, importation and sale of partially hydrogenated oils (PHOs) and foods containing the same has come into force on 13 July 2018 (see also MPPU Jan.’17). Generated when plant oils are processed to increase their stability and functionality, PHOs represent the primary dietary source of artificial trans fat in processed foods. The ban builds on evidence of trans fat intake raising the risk of coronary heart diseases. To allow for an orderly transition in the marketplace the industry has been granted a 180-day grace period, which shifts actual enforcement to 9 January 2019.              "]
[2018,"August","TURKEY – import policy:  To stimulate imports and ensure that domestic demand for edible oils is met, the Government decided to temporarily lower the import tariffs for sunflower seed and oil. From 5 June to 1 August, the import duty for the seed was reduced from 27 to 13 percent, while that for oil stood at 23 percent instead of 36 percent.  "]
[2018,"August","UKRAINE – export policy:  The abolition of the VAT refund on exports of soybeans and rapeseed (see MPPU Jan.’17) has been postponed to 31 December 2021, but only for farmers and companies exporting their own crops – implying that traders will no longer be eligible for refunds as of 1 September 2018. In the case of sunflowerseed, all tax refunds have been suspended since March 2018.  "]
[2018,"August","UNITED STATES / INDIA – trade dispute:  In response to the United States’ introduction of higher duties on imports of steel and aluminium from India, the Government of India has filed a WTO notification, which includes a list of US products that could be subject to retaliatory import duties. The list includes wheat, crude soybean oil and refined palm olein. "]
[2018,"August","UNITED STATES / CHINA – trade dispute:  On 6 July, after several rounds of bilateral trade talks, the United States imposed a 25 percent import tariff on mostly industrial Chinese products worth USD 34 billion, prompting China to levy import taxes on the same value of US products, including several agricultural goods (see also MPPU May’18). Of particular relevance is China’s 25 percent retaliatory tariff on imports of US soybeans, both black and yellow, which brought the total duty charged on such imports to 38 percent (NB: for China, by far the world’s largest soybean buyer, the United States is the second largest provider; on the other hand, about 60 percent of the United States’ soybean exports are directed to China). Besides triggering an abrupt slowdown in China’s soybean purchases from the United States, the measure has affected prices for soybeans and several other commodities in several countries, giving rise to a succession of adjustments in global trade flows. Additional adjustments in overall trade patterns can be expected if the concerned tariff barriers remain in place. The trade tension between the two countries could escalate further, considering that the United States confirmed its intention to start collecting tariffs on an additional USD 16 billion of Chinese imports as of 23 August – a measure China is expected to reciprocate. While grains and oilseeds do not feature in the list of commodities targeted under the second round of tariffs, China’s catalogue includes US fishmeal.  "]
[2018,"August","UNITED STATES – trade mitigation measures – agricultural relief package:  The U.S. Government announced a set of measures to assist farmers suffering from trade damage following China’s introduction of retaliatory tariffs on certain US agricultural exports. As a one-time, short-term relief package, USDA has been authorized to implement support programmes worth USD 12 billion, in line with an estimated USD 11 billion impact of China’s new tariffs. To help producers meet the costs arising form market disruptions, three types of measures will be implemented: i) incremental, output-based payments to producers of selected crops (including soybeans) to compensate farmers for price-induced losses and to expand new markets at home and abroad; ii) government purchases of unexpected surplus of affected commodities for distribution to public nutrition programmes; and iii) trade promotion activities conducted in conjunction with the private sector to assist in developing new export markets. According to government officials, the special aid package complies with the WTO-mandated thresholds for trade-distorting farm support. While farmer representatives welcomed the support measures, they also expressed concern about the long-term risks associated with potential export market losses. "]
[2018,"August","UNITED STATES – biofuel policy:  The Environmental Protection Agency (EPA) proposed its target for ‘biomass-based diesel’ in 2020 (see also MPPU Dec.’17). The proposed 2.43 billion gallons blending mandate compares to a volume of 2.1 billion gallons applied in both 2018 and 2019. Furthermore, EPA proposed a 2019 target for the ‘advanced biofuel’ category – for which biodiesel also qualifies – of 4.88 billion gallons, which compares to a 2018 mandate of 4.29 billion gallons. The proposed increases would lead to rising demand for soybean oil and other biodiesel feedstock. As for the other biofuel categories, EPA proposed to keep the 2019 target for ‘conventional biofuel’ (mostly ethanol derived from maize starch) frozen at 2015 levels, while significantly raising mandatory blending of ‘cellulosic biofuel’. EPA’s deadline for issuing the final volumes is 30 November. Regarding the proposal for biomass-based diesel, the country’s biodiesel producers had called for a 2020 volume of at least 2.8 billion gallons. The industry also urged EPA to reduce the uncertainty it caused by issuing retroactive small-refiner hardship exemptions. In this regard, the National Biodiesel Board estimated that the exemptions granted in 2016 and 2017 reduced actual demand for biodiesel by 375 million gallons. However, EPA has decided against reallocating exempt volumes. "]
[2018,"August","UNITED STATES – GMO labelling:  In the United States, discussions about product coverage under a GMO labelling legislation passed in 2016 go on (see MPPU Aug.’16 & Oct.’17). Responding to a USDA call for public comments, food industry representatives reiterated that all ingredients that have undergone genetic modification should be subject to labelling, whereas farmers maintain that labels should exclude food ingredients refined and processed to the point that they no longer contain transformed genes. Food manufacturers argued that comprehensive labelling is important for both consistency and for meeting consumer expectations on transparency, adding that excluding refined ingredients would result in 78 percent fewer products being disclosed on labels. Industry players also see a need for further clarifications in the following areas: i) content thresholds triggering labelling; ii) mutual recognition arrangements for imported foods; iii) the treatment of organisms obtained through gene-editing techniques; and iv) exemptions applying to very small food manufacturers as well as to incidental additives, food from animals fed with GM feed, food served in restaurants and organic food."]
[2018,"August","UNITED STATES – food safety standards:  In line with legislation passed in 2015, as of 18 June 2018, food products manufactured in the United States are no longer allowed to contain partially hydrogenated oils, or PHOs (see MPPU July’15). Generated when plant oils are processed to increase their stability and functionality, PHOs represent the primary dietary source of artificial harmful trans fat in processed foods. For certain specified applications of PHOs, the U.S. Food and Drug Administration (FDA) decided to extend the compliance date to 1 June 2019. More importantly, to allow for an orderly transition in the marketplace, FDA also allowed more time for all products produced prior to 18 June 2018 to work their way through distribution. For these foods the compliance date has been extended to 1 January 2020."]
[2018,"August","Variable palm oil export tax – Malaysia:  After suspending its duty on palm oil exports for four month at the start of the year to stimulate demand and support prices – Malaysia reintroduced export taxation at 5 percent in May. While the rate remained unchanged in June and July, it was lowered to 4.5 percent in August, reflecting a slide in the reference market price.               "]
[2018,"August","Variable palm oil export tax – Indonesia:  In Indonesia, the export tax on crude palm oil stays at zero, as benchmark prices remained below the threshold that triggers taxation. The month of August marks the sixteenth month in succession with no export tax.               "]
[2018,"August","International food standards:  The World Health Organization (WHO) issued a call for public comments on draft guidelines about the intake of saturated fatty acids and trans-fatty acids, with the aim to reduce the risk of cardiovascular diseases in adults and children. Furthermore, the organization released a step-by-step guide for the elimination of harmful industrially-produced trans-fatty acids from the food supply chain. The guide recommends six strategic actions, namely: reviewing dietary sources of trans fats and the landscape for required policy change; promoting the replacement of trans fats with healthier fats and oils; legislating regulatory actions to eliminate trans fats; assessing trans fat content in the food supply chain and monitoring changes in trans fat uptake; creating awareness of the negative health impact of trans fats; and enforcing compliance of policies and regulations. The WHO’s target is to eliminate the harmful compound worldwide by 2023.      "]
[2018,"August","Biotechnology regulation – European Union, United States, China:  The Court of Justice of the European Union ruled that crops and other organisms obtained through recently improved genome editing techniques (also known as ‘gene-editing’ or ‘mutagenesis’) fall under EU laws regulating the use of GMOs. The ruling subjects the named organisms – as well as food and feed products containing them – to lengthy approval processes and stringent traceability, labelling and monitoring requirements. Only such organisms that have conventionally been used in a number of applications and have a long safety record may be exempted. Mutagenesis refers to a set of techniques that, unlike trans-genesis, make it possible to alter the genome of a living species without the insertion of foreign DNA, while causing mutations by changing (or ‘editing’) a few pieces of DNA code. Seed companies and research institutes around the world have shown interest in the new technique as it allows for faster and more precise breeding (see also MPPU Dec.’16, Jan.’18 & May’18). While the EU’s biotech industry pointed out that gene-editing hardly differs from mutagenesis that occurs naturally (or from long-established techniques that use chemical, radiation or other physical stimuli to induce mutations), the Court maintained that the risks linked to the new breeding methods might prove to be similar to those resulting from the production and release of GMOs. The Court’s position differs from that adopted in the United States, where, in March 2018, USDA chose not to regulate innovative plant breeding techniques such as genome editing, thereby lowering the cost for meeting regulatory requirements and expediting market entry. Other countries, including China, have taken a similar approach. According to private sources, in the last ten years, the highest number of patent applications using the new breeding techniques has been filed in China, followed, at some distance, by the US and the EU, where uncertainties regarding regulation and consumer acceptance persisted.           "]
[2018,"August","Sector development measures – Ecuador – palm oil:  The Government of Ecuador presented a five-year action plan to make the country’s palm oil supply chain more sustainable. A key objective of the USD 1.2 billion programme is to make RSPO (Roundtable on Sustainable Palm Oil) certification the norm, nation-wide. The Government is planning to place taxes collected from palm oil exporters into a public/private-controlled fund for the support of smallholders shifting to more sustainable production methods and, eventually, certification. The envisaged jurisdictional certification would rely entirely on RSPO’s internationally recognized norms as opposed to a purpose-made national standard (see also MPPU Nov.’16). "]
[2018,"August","Sector development measures – India – palm oil:  The Government of Telangana State encouraged farmers to embark on oil palm cultivation. By promoting palm oil production for the domestic market, the local initiative would contribute to reducing India’s dependence on imported vegetable oils. Across the state, 283 000 ha of land have been identified as being suitable for oil palm cultivation."]
[2018,"August","Sector development measures – Malaysia – palm oil:  The Malaysian Palm Oil Council (MPOC) informed that it will increase its efforts to promote sales of Malaysian palm oil to markets other than the European Union, citing concerns about the possible introduction of import barriers in the EU. "]
[2018,"August","Sector development measures – Spain – olive oil:  Spain’s olive oil industry has launched a campaign to promote olive oil sales across Europe, America and Asia. The three-year initiative enjoys co-financing from the European Union. Promotional activities will be directed mainly to consumers in Spain, Germany, the United Kingdom, Belgium, the Netherlands, China, Japan, and the United States."]
[2018,"August","Sector development measures – Zimbabwe – soybean:  In a bid to stimulate domestic soybean production, the Government of Zimbabwe has raised the price for soybeans delivered to the state-run Grain Marketing Board from USD 610 to USD 780 per tonne. Meanwhile, the country’s oil crushers are seeking permission from the Government to buy soybeans at the import parity price of USD 400 per tonne, in a bid to maintain cooking oil prices at a level affordable to consumers (see also MPPU Sep.’17)."]
[2018,"August","Seed market news – Brazil, patent dispute:  Pending the outcome of litigation over a patent dispute between Brazilian soybean growers and seed company Monsanto, a judge in Mato Grosso State ordered Monsanto to deposit royalties collected on soybean variety ‘IntactaRR2Pro’ in an escrow account (see also MPPU Mar.’18). Soybean growers expect Monsanto to collect BRL 800 million (USD 205 million) in royalties in the 2017/18 crop cycle.      "]
[2018,"August","Biofuel news (private sector) – Groundnut waste:  In Argentina, a large peanut producer began commercial operation of a groundnut shell-powered bioenergy plant, according to media reports. The facility is expected to consume 50 000 tonnes of groundnut waste per year and the power produced will be fed into the national grid. The project is part of the Argentine Government’s renewable energy programme RenovAr."]
[2018,"August","Biofuel news (private sector) – Used cooking oil:  In India, global foodservice retail company McDonald’s started recycling into biodiesel its used cooking oil for powering the company’s refrigerated supply delivery trucks, local media reported. "]
[2018,"August","Overseas investments – China:  Amid escalating trade tensions between China and the United States, market observers reported fresh efforts by China’s state-owned grain trading group COFCO in positioning itself to raise soybean purchases in Brazil. To increase its ‘origination capabilities’, the company is said to have strengthened its local team of buyers. While increasing its ability to source directly from farmers, the company also remains involved in the improvement of the country’ shipping infrastructure. Reportedly, COFCO is applying for the renewal of its port concessions with a view to pave the way for further investments. (See also MPPU Feb.’16 and June/Oct./Dec.’17)              "]
[2018,"August","Research & Development – Xylella fastidiosa: A group of researchers supported by the European Commission developed a remote, airborne imaging method capable of scanning orchards and detecting olive trees infected by the xylella fastidiosa bacterium before any visible symptoms appear, thus allowing for rapid and accurate mapping of infected plants. Reportedly, once trees are infected, they may show no symptoms for up to one year, during which time ordinary sap-feeding insects may be transmitting the infection. Therefore, early detection is deemed crucial for controlling damage and preventing the disease from spreading."]
[2018,"August","Research & Development – Vegetable oil-based plastic:  Household goods company IKEA and biofuel producer Neste informed that they joined forces to develop bio-based plastic products from sustainably produced vegetable oils and used cooking oil. The joint, commercial scale operation is scheduled for launch in the fall of 2018. Some years ago, Malaysia and Indonesia also reported about research initiatives to produce plastics from palm oil (see MPPU Apr./May’15)."]
[2018,"August","Research & Development – Olive oil provenance:  Italian researchers presented a scientific method that allows certifying the authenticity and geographic provenance of olive oil – a commodity prone to fraudulent labelling and adulteration. Under the technique, which has been compared to taking an oil’s fingerprint, detailed genetic information as well as external parameters such as soil and climate data of the area where the oil originates are recorded using nuclear magnetic resonance (NMR). Similar techniques have been developed for the authentication of groundnut oil as well as to verify the purity of biodiesel (see MPPU June’17)."]
[2018,"August","Research & Development – Protein-rich rapeseed:  Seed company DowDuPont intends to launch a high protein-content rapeseed variety next year, targeting pig, poultry as well as aquaculture farms in Canada, China and the United States. While conventional rapeseed meal is sold at a 30–35 percent discount to soybean meal, for the protein-rich variety, the discount would be lowered to 10 percent, the seed company claims. (See also MPPU Mar.’16 & July’18) "]
[2018,"August","Palm oil sustainability – RSPO news – Member suspension:  RSPO, the industry-led, globally recognized palm oil certification body, decided to temporarily suspend global food and drinks company Nestlé from its members, citing conduct breaches. As a result, for three weeks the company could not claim to use certified sustainable palm oil in its products. Reportedly, the company had failed to comply with obligations to submit annual reports detailing past actions and future plans on how it was ensuring the use of certified sustainable palm oil. Nestlé’s membership was reinstated after the company submitted a time-bound action plan to achieve 100% RSPO certified sustainable palm oil by 2023, while working actively on solutions within the RSPO system. The incident led a number of civil society groups to renew their calls on the RSPO to strictly enforce its standards. Some underlined that – irrespective of certification – all palm oil end-users needed to step up their efforts to prevent palm oil linked to unsustainable practices from entering their supply chains. All brands were urged to take direct responsibility for identifying the producers of their palm oil and for ensuring that all those producers apply sustainable practices."]
[2018,"August","Palm oil sustainability – RSPO news – Member withdrawal:  A large oil palm company based in Liberia decided to voluntary withdraw its RSPO membership. Reportedly, RSPO had filed a number of complaints against the company concerning the clearance of land without the free, prior and informed consent (FPIC) of customary land owners. At the same time, the company presented a new action plan to strengthen and restore confidence in its sustainability credentials. Reportedly, the plan is time-bound, encompasses social and environmental components, and will be implemented with the support of independent partners including the NGO The Forest Trust. "]
[2018,"August","Palm oil sustainability – RSPO news – China initiative:  The RSPO, the Chinese Chamber of Commerce of Foodstuffs and Native Produce (FFNA) and the World Wildlife Fund (WWF) jointly launched the China Sustainable Palm Oil Alliance to create a platform for cooperation among stakeholders in the palm oil supply chain and promoting sustainable palm oil in China. Reportedly, a number of key players in China’s supply chain pledged to promote the adoption of certified sustainable palm oil in the domestic market. Although China is the world’s third-largest importer and fourth-largest consumer of palm oil, certified palm oil only accounts for a small share of the domestic market. However, the RSPO said it noticed a very positive momentum towards its target to achieve a 10% market share by 2020. Reportedly, Chinese membership in the body has surged in the past few years."]
[2018,"August","Palm oil sustainability – RSPO news – Nigeria initiative:  The RSPO informed that its Principles & Criteria have been ‘interpreted’ for Nigeria. National interpretations allow to adapt the general standard to a country’s specific market conditions and requirements. The successful completion of the Nigeria National Interpretation document is seen as an important milestone for the future of certified sustainable palm oil in the region."]
[2018,"August","Palm oil sustainability – RSPO news – Ghana smallholder support:  The RSPO set up – jointly with the Farmers Association of Ghana – a national platform to facilitate collaboration between potential project partners or market players and independent smallholder oil palm farmers. The initiative is aimed at enabling more smallholders to engage in modern, sustainable supply chains, including product certification. The average yield level of smallholder producers is estimated to be well below potential, due to poor agronomy, limited use of fertilizer and low-yielding planting material. The platform has been created to encourage millers, government agencies, NGOs and other development partners to provide the required training and extension assistance to small growers. Reportedly, Ghana’s smallholders provide more than 70 percent of the palm fruit processed in the country."]
[2018,"August","Palm oil sustainability – Indonesia / India joint promotion effort:  Private sector and social society groups in India and Indonesia have joined forces to promote the production and trade of sustainably produced palm oil. Recognizing Indonesia’s state-backed national certification scheme, Indonesian Sustainable Palm Oil (ISPO), and the Indian Palm Oil Sustainability Framework (IPOS) as central sustainability initiatives, the initiative is aimed at expanding the market for sustainably produced palm oil in the two countries and in the region as a whole. Private sector representatives from both countries pledged to work together to reduce trade barriers and protect the competitiveness of the palm oil industry. In particular, the partners envisage to conduct public awareness campaigns. Officials from the Indonesian Government, which has backed the initiative, have been quoted as saying that the project ought to address the Indian consumers’ misconception that palm oil is of inferior quality because it costs less than other oils. India is the world’s largest importer and second-largest consumer of palm oil. Considering India’s weight in the global palm oil market, the WWF recently highlighted the critical role Indian companies could play in promoting sustainable production practices in the countries where oil palm is cultivated (see MPPU Oct.’17). "]
[2018,"August","Palm oil sustainability – company initiatives – Sourcing policy:  Global beverage company PepsiCo renewed its commitment to exclusively source sustainably produced palm oil by 2020. Reportedly, the company’s annual purchases of palm and palmkernel oil amount to around 450 000 tonnes. The company reported that 50 percent of its palm oil supply is on track to be RSPO-certified by the end of 2018.    "]
[2018,"August","Palm oil sustainability – company initiatives – Sourcing policy:  3F Industries, an Indian company operating in the edible oil imports and production sector pledged to procure certified palm oil and its derivatives, the RSPO informed. The company also committed to proactively create awareness about sustainably produced palm oil among Indian businesses and consumers. Reportedly, the firm imports, produces and processes about 200 000 tonnes of palm oil products per year."]
[2018,"August","Palm oil sustainability – company initiatives – Traceability efforts:  The media reported that Golden Agri-Resources, one of the largest palm oil companies in Southeast Asia, is testing new GPS-based technologies to establish traceability for the palm oil it sources from third-party mills in Indonesia. Reportedly, 60 percent of the company’s supplies come from more than 400 third-party mills who in turn buy their palm fruit from thousands of growers. The company acknowledged that the traceability standards it applies to its own mills are difficult to extend to the other suppliers, one of the main reasons being the ‘unregulated nature’ of the middlemen who buy palm fruit from farmers to sell it to mills. Reportedly, the fact that farmers are free to sell to any intermediary makes tracing the provenance of individual batches of palm fruit very challenging. Furthermore, it is not feasible to obtain assurances from middlemen that they exclusively buy from verified sustainable plantations. Similarly, global agribusiness firm Cargill has entered into a partnership with the World Resources Institute to test the institute’s satellite mapping tool called Global Forest Watch Pro. Reportedly, the device could allow management to track issues all along the company’s supply chain and address concerns in line with its grievance procedure. Cargill’s supply chain is said to rely on 11 company-owned mills and over 1 500 third-party mills. Currently, the company appears to attach greater importance to achieving full traceability than to obtaining 100% RSPO-certification. "]
[2018,"August","Palm oil sustainability – third-party assessments – Brazil policy impact:  In 2010, Brazil’s Federal Government launched the Sustainable Palm Oil Production Program (SPOPP), which, inter alia, was aimed at encouraging producers in Legal Amazonia to expand oil palm cultivation without clearing primary or secondary forest, using already cleared, degraded land instead. According to a recently published study, during the 2006-2014 period, in Pará State (where commercial palm oil cultivation in the Amazon Basin is concentrated), 91 percent of production expansion has occurred on former pasture land, not forest, and the direct conversion of intact forests is reported to have declined since the inception of SPOPP. However, referring to a possible acceleration in oil palm expansion in the near future, the researchers warned that pressure to deforest could increase. In particular, the study points out that SPOPP lacks the means to prevent ‘indirect deforestation’, that is the clearing of rainforest for grazing purposes, followed by conversion into plantations."]
[2018,"August","Palm oil sustainability – third-party assessments – RSPO impact:  The effectiveness of existing certification schemes and related initiatives in furthering sustainable palm oil production remains under public scrutiny (see also MPPU Jan.’18). According to news media, a new study undertaken to assess how effective the RSPO has been in achieving its sustainability goals by comparing certified and non-certified concessions in Kalimantan, Indonesia, claims that no significant differences were found between the two types of plantations for most of the sustainability metrics investigated. The findings are notable, given that the RSPO – thanks to its comprehensive set of requirements – is generally regarded as the leading certification scheme for palm oil. Reportedly, the RSPO called into question the validity of the study’s findings, citing ample evidence in independent assessments showing the positive impact of its certification activities. Recognizing that many areas for improvement remain, the body informed that it had commissioned studies to determine the actual performance of its certification scheme against its stated standards."]
[2018,"August","Palm oil sustainability – third-party assessments – Private sector commitments:  A report released by an environmental advocacy group, claims that a number of palm oil firms operating in Indonesia, Malaysia and Papua New Guinea use unclear corporate structures to conceal their ties to unsustainable production practices such as rainforest and peatland clearance. Allegedly, such practices allow growers to continue using harmful production methods, while still marketing their products through companies that are committed to ‘No Deforestation–No Peat–No Exploitation’ sourcing policies. On a similar note, a group of environmental NGOs claimed that palm oil sourced from illegally cleared rainforest areas in Indonesia has flown through traders to major consumer good brands, despite widespread company commitments to purchase exclusively sustainably produced oil."]
[2018,"August","Futures markets:  Bursa Malaysia has launched an enhanced USD-denominated futures contract for refined, bleached and deodorized palm olein, to provide more trading opportunities and flexibility to a wider group of investors, both domestic and foreign."]
[2018,"August","Futures markets:  The Chicago Mercantile Exchange Group considered raising the maximum storage rates warehouses are allowed to charge holders of maize and soybean futures, to address concerns that its contracts are not adequately reflecting the underlying U.S. cash grain markets."]
[2018,"October","ARGENTINA – export policy:  In mid-August, as part of a wider fiscal tightening programme, the Argentinian Government suspended for six month its policy of gradually reducing export taxes for soymeal and soyoil. Subsequently, on 3 September, the Government reduced the tax applied to shipments of all three, soybeans, soymeal and soyoil, to 18 percent – from the prevailing levels of, respectively, 25.5 percent, 23 percent and 23 percent. Simultaneously, a new export levy of 12 percent was introduced, with a maximum limit of 4 ARS (11 US cent) for each US dollar in export value. Applied to all primary product exports and driven primarily by treasury needs, the latter levy is added to the 18 percent export tax in place for soybeans and derived products. Based on the export prices and exchange rate levels prevailing at the beginning of September, soybeans and derived products have seen an effective tax hike of roughly 3 percentage points. It is important to note that, with the introduction of a uniform tax throughout the soybean complex, the country’s crushing industry no longer avails of the protection previously enjoyed in form of tax differentials. Conversely, the relative export competitiveness of soybeans has improved. The attractiveness of soybeans exports has also improved relative to grains, which could lead to larger than originally expected soybean plantings in the imminent 2018/19 season. As for the other oilseeds, the new 4 ARS export levy also applies to sunflowerseed and groundnut, whereas only 3 ARS (8 US cent) are assessed on the respective oils and meals. The lower rate also applies to biodiesel exports. The new tax rates and levies are expected to stay in place until 31 December 2020.               "]
[2018,"October","ARGENTINA – biodiesel price:  During the August–September period, the government-set price that oil companies need to pay for biodiesel has been raised thrice, reaching ARS 26 509 (USD 725) per tonne as of 10 September 2018. Reportedly, the adjustments were triggered by the recent changes in the Argentina’s export tax for soybean oil, the country’s main biodiesel feedstock."]
[2018,"October","AUSTRALIA – agricultural relief measures:  In Australia, a number of federal and state-level relief packages to assist farmers hit by this year’s widespread drought have been announced. "]
[2018,"October","BRAZIL – transportation policy:  In accordance with recently passed legislation authorizing the Brazilian Government to set minimum truck freight rates (see MPPU Aug.’18), on 5 September, the country’s National Transport Agency (ANTT) raised nationwide minimum freight prices by 5 percent on average – in response to a 13 percent rise in the price of diesel. Reportedly, after the move, loading of grains and oilseeds at ports has slowed further, given the increase in costs faced by farmers and exporters. Trade sources estimate that the increase in rates has raised average freight costs per tonne of grain from BR 225 (USD 60.57) to BR 236 (USD 63.53). According to the media, confronted with higher road transportation costs, a group of farmers in Mato Grosso state is considering to help fund the construction of the proposed Grain Railroad (Ferrogrão) that would link Mato Grosso with trans-shipment ports in the Amazon basin.            "]
[2018,"October","BRAZIL – biofuel policy:  Striving to expand domestic biodiesel consumption, the Brazilian Government has raised the allowed voluntary percentage of biodiesel mixture in regular diesel for certain groups of users. Large consumers served by their own point of supply (such as carriers and transport companies) are now allowed admixture rates of up to 20 percent, whereas new rates of 30 percent have been set for agricultural, industrial and rail uses, and 100 percent for experimental and other special applications. The nation-wide mandatory blending rate for regular transport diesel remains unchanged at 10 percent.  "]
[2018,"October","CHINA – agricultural policy:  China’s State Council envisages a further expansion in domestic soybean plantings over the next five years, hand-in-hand with a reduction in maize sowings, a state-owned news agency reported."]
[2018,"October","CHINA – government auctions:  By end-September, this year’s cumulative sales of soybeans from state-hold inventories stood at 1.64 million tonnes, which compares to a total offer of 5.26 million tonnes. The average sales prices realized was CNY 3 017 (USD 435) per tonne. For soybean oil and rapeseed oil, the total volumes offered amounted to, respectively, 0.62 and 0.48 million tonnes, of which, respectively, 21 percent and 17 percent found a buyer. The average per-tonne prices achieved were CNY 5 000 (USD 720) for soybean oil and CNY 6 029 (USD 869) for rapeseed oil.           "]
[2018,"October","EUROPEAN UNION – biodiesel import restrictions:  The European Commission decided to postpone the introduction of provisional countervailing duties on imports of allegedly subsidized biodiesel from Argentina (see also MPPU May & Aug.’18). Despite the preliminary finding that Argentinian exports are favoured by subsidies and therefore potentially threaten the EU’s biodiesel industry, the Commission informed that it intends to collect additional information in order to proceed with its investigations. Market participants had expected that the Commission would collect duties from October. Accordingly, Argentina’s biodiesel shipments to the EU are reported to have dropped in recent weeks.       "]
[2018,"October","FRANCE – climate policy:  The French Agricultural Ministry launched a public consultation on its draft National Strategy to Combat Imported Deforestation (SNDI). As part of the Government’s 2017 Plan Climat (developed following the UNFCC Paris Agreement), the proposed strategy is aimed at ending the importation of forest and, especially, agricultural products that contribute to deforestation. Initially, the strategy would focus on the following agricultural commodities: soybeans, palm oil, bovine meat, cocoa and rubber.    "]
[2018,"October","INDIA – agricultural procurement:  In line with earlier announcements (see MPPU May’18), India’s Central Government has reformed its procurement policy with a focus on crops where domestic demand exceeds local supplies, notably oilseeds, copra and pulses. To cover gaps in the existing public procurement and compensation mechanisms and help raise farmers’ incomes, three types of procurement will be implemented. First, the Centre’s Price Support Scheme (PSS) will be extended to oilseeds, copra and pulses, with nodal procurement agencies undertaking physical procurement and farmers receiving the official minimum support prices (MSP) for their crops (see MPPU Aug.’18 for the latest Kharif crop MSP rates). Importantly, PSS purchases will only be effected up to 25 percent of a state’s oilseeds production. Second, the Centre will implement a Price Deficiency Payment Scheme (PDPS) earmarked specifically for oilseeds. Under the scheme, farmers will be paid the difference between the relevant MSP and actual selling prices (recorded within notified periods in specified markets), with payments being made directly into farmers’ bank accounts. Third, again oilseed-specific but this time at state-level and on a pilot basis only, a Private Procurement and Stockist Scheme (PPSS) will be rolled out in select districts. Under this scheme, when market prices drop below MSP level, a private player can procure crops (in notified markets and periods) at the existing MSP rates. Subsequently, such buyers will be compensated through a service charge equivalent to up to 15 percent of the MSP. Regarding PPSS, market experts pointed out that past experience of engaging private players in procurement operations for wheat and rice has been mixed so far, with commercial viability, delays in state payments and storage space shortages identified as main challenges."]
[2018,"October","INDIA – biofuel policy:  India’s recently released National Policy on Biofuels envisages indicative targets of 20 percent gasoline blends for ethanol and 5 percent diesel blends for biodiesel by 2030, which compares to current penetration rates of around 3 percent and less than 0.2 percent for ethanol and biodiesel respectively. Road and rail transport is estimated to account for about half of total biodiesel consumption, with off-road farm transport and various stationary and portable applications accounting for the remainder. Today’s low biodiesel penetration rate is attributed to multiple constraints, notably the lack of a dedicated, integrated supply chain, limited feedstock availability, and restrictions on imports. India’s six biodiesel plants hold a combined installed capacity of 574 000 tonnes per year, whereas actual output in 2018 is estimated at merely 165 000 tonnes. Currently, the main feedstock used are palm stearin, UCO and animal fats. The Government’s new biofuel policy focuses on fuels produced from domestic raw materials. In the case of biodiesel, the recommended feedstock comprise non-edible oilseeds, used cooking oil (UCO), animal tallow, acid oils and algae. The policy includes strict rules to prevent UCO from re-entering the food chain and envisages the establishment of appropriate collection mechanisms to increase the supply of UCO for biodiesel production (see also MPPU Aug.’18). Moreover, it recommends the use of wastelands and inter-cropping for feedstock generation, with a focus on non-edible oil bearing trees and crops as well as other biomass, for which suitable supply chain mechanisms and fair price mechanisms are to be put in place. With regard to non-edible oilcrops, trials with jatropha curcas, an oilplant promoted under India’s National Biodiesel Mission, have given rise to multiple questions about the crop’s agronomic and economic viability (see also MPPU June’13).            "]
[2018,"October","INDONESIA – environmental policy:  Under consideration since more than two years (see MPPU June, Aug.’16 & Mar.’18), a three-year nationwide moratorium on new oil palm plantation licenses has finally been signed by Indonesia’s President in September. The initiative is part of wider efforts to protect the country’s environment and complements a ban on primary forest and peat land clearing that is in place since 2011 (see MPPU Aug.’11, June’13, May’15 & June’17). The new moratorium is aimed at improving the governance of sustainable production, guaranteeing environmental preservation and providing legal clarity, as well as at incentivizing farmers to raise yields on land currently under cultivation. Importantly, the moratorium does not only applies to new requests for licenses but also to permits that are currently under review. Accordingly, governors, mayors and district chiefs have been instructed to re-evaluate long-standing permits that have been issued but not yet implemented, in particular licenses that involve forest areas. Civil society groups, which had called for a permanent ban, asked for the data gathered under the permit review to be made publicly available. They also spotted perceived weaknesses in the moratorium’s law-enforcement and requested that police forces, the Attorney General Office and the country’s anti-graft agency be involved in the investigations.      "]
[2018,"October","INDONESIA – biofuel policy:  In support of recent measures to foster domestic production and consumption of palm oil-based biodiesel (see MPPU Aug.’18), the Government decided to widen the ability of the country’s Oil Palm Estate Fund to subsidize the price gap between conventional diesel and biodiesel (NB: the fund was set up in 2015 to collect a levy on each tonne of crude palm oil exported). While previously only sales involving state-owned companies (so-called PSO sales – see MPPU Mar.’18) could benefit from subsidies, now incentives will reach all biodiesel manufacturers, thereby ensuring uniform pricing in the PSO and non-PSO sector. In the meantime, official sources reported that, as of mid-September, the implementation of the nation-wide B20 mandate (i.e. sales of diesel including 20 percent of biodiesel) had reached 80 percent of the Government’s target. Reportedly, Pertamina – the country’s dominant, state-owned diesel distributor – managed to distribute B20 biodiesel to 95 percent of its petrol stations. Reaching the target fully would require overcoming a number of outstanding logistical issues, especially in the eastern part of the country, market experts said. According to official estimates, biodiesel production could climb to 7 million metric tonnes next year – 40 percent higher than the 5 million tonnes estimate provided for the current year.        "]
[2018,"October","INDONESIA – export rules:  As part of policies to address on-going currency and current account problems, the country’s trade ministry has laid out new rules that require commodity exporters to guarantee funding for shipments exclusively through local banks. The new regulation has taken effect on 7 October.      "]
[2018,"October","INDONESIA – export policy:  In Indonesia, the export tax on crude palm oil remained at zero, as benchmark prices continued to range below the threshold that triggers taxation. The month of October marks the eighteenth month in succession with no export tax in Indonesia."]
[2018,"October","MALAYSIA – export policy:  After fresh drops in the reference market price for palm oil, Malaysia suspended its export tax on the commodity for the months of September and October. Since the beginning of this year, palm oil export taxes have only been applied during the May–August period. "]
[2018,"October","MALAYSIA – labour policy:  The Malaysian Government announced that a new minimum wage of MYR 1 050 (USD 253) per month will take effect nationwide on 1 January 2019, adding that, over the next four years, pays are set to reach MYR 1 500 (USD 361). Currently, the minimum wage stands at MYR 1 000 in Peninsular Malaysia and MYR 920 in Sabah and Sarawak. According to industry sources, the new wage policy eased the concerns of employers in the labour-intensive plantation industry, as wages paid in the sector tend to exceed the newly stipulated level.       "]
[2018,"October","TURKEY – import policy:  As part of measures to sustain the value of the country’s currency vis-à-vis the US dollar, the Government of Turkey decided to leave import duties on sunflower seed, oil and meal at their current, reduced level of, respectively, 13 percent, 23 percent and zero. Originally, the temporary tariff reduction was meant to end on 1 August 2018 (see MPPU Aug.’18).  "]
[2018,"October","UNITED STATES – trade mitigation measures – agricultural relief package:  The US Government provided details about its support programme for farmers impacted by China’s introduction of retaliatory tariffs (see also MPPU Aug.’18). To assist farmers to meet the costs of disrupted markets, three measures will be implemented.  First, under the Market Facilitation Program (MFP), producers will be granted USD 4.7 billion of direct payments. Roughly USD 3.6 million have been earmarked for soybean producers, with the remainder going to the sorghum, maize, wheat, cotton, dairy and meat sectors. Programme enrolment under MFP opened on 4 September and will close in January 2019. Based on the severity of trade disruption and the period of adjustment to new trade patterns, the initial payment rate for soybeans – the most affected commodity – has been set at USD 60.62 per tonne, to be paid on half of each producer’s actual 2018 production. Additional payments will be announced in the coming months, if warranted. MFP payments per farmer are capped at a combined USD 125 000 for soybeans, maize, cotton, sorghum and wheat. Second, a USD 1.2 billion Food Purchase and Distribution Program will procure various impacted agricultural products – excluding soybeans – for distribution to recipients through existing nutrition and child assistance schemes. Third, the Agricultural Trade Promotion Program (USD 200 million) will enable eligible stakeholders to identify and develop new export markets for all affected commodities on a cost-sharing basis. Activities envisaged comprise consumer advertising, public relations, point-of-sale demonstrations, trade fairs and exhibitions, market research, and technical assistance. The United States’ aid package provoked strong interest among trade partners. At the WTO, member states asked for details on the methodology of the programme, its duration, and its consistency with WTO rules. The United States stressed that its relief programme was a one-time measure, limited to the September 2018–January 2019 period, adding that it would not entail export subsidies nor involve public stockholding operations.      "]
[2018,"October","UNITED STATES / CHINA – trade dispute:  After both sides imposed special tariffs on each other’s exports worth USD 50 billion in the July–August period (see MPPU Aug.’18), on 24 September, following fresh failures in bilateral talks, the two countries introduced additional tariffs. In the new round of trade measures, the United States introduced import tariffs of 10 percent on Chinese products worth USD 200 billion, adding that the rate could be raised to 25 percent on 1 January 2019. Affected commodities include a number of oilcrops and oilmeals, imports of which, however, have been negligible in recent years. At the same time, China introduced new tariffs on U.S. products worth USD 60 billion. For the oilcrops complex, China’s additional tariffs amount to 10 percent for certain oilseeds (excluding soybeans, which had been targeted in the earlier round), vegetable oils/meals and  fishoil/meal, and 5 percent for a number of other oilseeds, vegetable oils, and meals of animal origin. Again, in the recent past, China only imported small quantities of the earmarked oilseed products from the United States.         "]
[2018,"October","VIET NAM – import policy:  The U.S. Government reported that it received non-compliance notifications from Viet Nam’s Ministry of Agriculture regarding wheat and soybean consignments contaminated with seeds of perennial weed cirsium arvense. Reportedly, Viet Nam’s authorities informed that, starting 1 November 2018, the country would enact strict plant quarantine measures, including the rejection of contaminated shipments.     "]
[2018,"October","Trade Agreement – United States / Mexico / Canada: The three countries agreed to replace NAFTA, the free trade agreement signed in 1994, with the United States-Mexico-Canada Agreement. Under the new trade accord, market access for oilcrops would not be affected as all relevant trade facilitation provisions are expected to remain in place without modification. The new agreement is poised to expire after 16 years. "]
[2018,"October","Sector development measures – Canada – rapeseed industry:  Canada’s Federal Government announced up to CAD 12.1 million (USD 9.24 million) in funding – over five years – to the country’s Canola Council under its Canadian Agricultural Partnership programme. The research investment, which will be complemented with CAD 8.1 million (USD 6.19 million) from the industry, is aimed at advancing the sector’s growth and profitability by creating new and improved products. The focus will be on: adapting food processing techniques; exploring uses for rapeseed meal in livestock production; yield optimization; crop protection from pest; and dissemination activities. The scheme is expected to contribute to the industry’s strategic plan of lifting Canada’s annual rapeseed output to 26 million tonnes by the year 2025. For comparison, this year’s production is estimated at a record 21.3 million tonnes.       "]
[2018,"October","Sector development measures – India – oilseed production:  With a view to help reduce the country’s dependence on edible oil imports, the Agricultural Ministry has proposed new strategies to raise domestic oilcrop production over the next four years. Measures envisaged include, in a large scale: i) the promotion of oilseed cultivation in non-traditional areas, cropping seasons and states; and ii) the introduction of oilseed production in rice fallow areas during the rabi season. The Ministry proposed to provide direct assistance worth INR 3 000 to 5 000 (USD 41 to 68) per hectare – in the form of agriculture inputs like seed, fertilizer and pesticides – to farmers who take up oilcrop production as an intercropping model. Recently, the Government decided to merge, from the current crop year, the National Mission on Oilseeds and Oil Palm with its National Food Security Mission, whose former coverage was limited to rice, wheat and pulses."]
[2018,"October","Sector development measures – Philippines – coconut sector (public):  A congressional bicameral committee has approved a bill creating a PHP 100 billion (USD 1.86 billion) trust fund to be used over 25 years to the benefit of the country’s 3.5 million coconut farmers. The funds originate primarily from a levy collected from coconut farmers during the 1970s to support the development and rehabilitation of the country’s coconut industry (see also MPPU Jan.’15 & July’16). Managed by the Philippine Coconut Authority, the funds will be earmarked for the following activities: scholarship programmes; shared facilities; empowerment of coconut farmer organizations and cooperatives; health schemes; infrastructure; planting, replanting and establishment of nurseries; intercropping; research & development; credit schemes; marketing and creation of new products; and fertilizer distribution."]
[2018,"October","Sector development measures – Philippines – coconut sector (private):  Global oils/fats manufacturer AAK intends to collaborate closely with Filipino coconut farmers to guarantee quality and supply for a new processing facility located in Luzon. Reportedly, the company strives to improve the sustainability of coconut production in the country. Under similar initiatives in Africa, farmers were encouraged to form cooperatives and received assistance in setting up bank accounts. The company plans to produce for both the domestic and export market."]
[2018,"October","Sector development measures – Malaysia – coconut sector:  The Malaysian Government plans to set up a special body to manage and regulate the country’s coconut industry and, in this context, sought advice from other coconut producing countries in Asia. While the industry is believed to have good growth potential thanks to increased demand for coconut-based products globally, producers face challenges in production caused by low productivity and competition for land with other crops."]
[2018,"October","Sector development measures – Sri Lanka – oil palm sector:  With a view to promote common interests and advocate sustainable growth through responsible production, stakeholders in the country’s oil palm value chain have set up the Palm Oil Industry Association. The new body will focus on measures to protect the image of palm oil and intends to work closely with the Government and industry experts to address concerns raised by the country’s Central Environment Authority regarding the adoption of good agricultural practices, notably by promoting measures to prevent ground water depletion and soil erosion as well as limit agro-chemical use. In Sri Lanka, where a limit of 20 000 hectares has been imposed on oil palm cultivation, clearing of existing natural forests remains strictly forbidden. As a result, oil palm cultivation is confined to converted, unproductive rubber and tea plantation land."]
[2018,"October","Sector development measures – Tanzania – oilcrop production:  Reportedly, the East African nation is pursuing plans to modernize – with assistance from Malaysia – domestic production of oil palm, sunflowerseed, groundnut, sesame, coconut palm and coconut, with a view to reduce the country’s dependence on edible oil imports and improve the livelihood of smallholder farmers. "]
[2018,"October","Pest control and pesticide regulations – Brazil – glyphosate:  In August, a Brazilian judge suspended the use of product containing glyphosate, a herbicide extensively employed for soybeans and other crops in Brazil and world-wide. Under the injunction, existing and new registrations of products containing the chemical were to be suspended as of September 2018, until the country’s health authority ANVISA issued the findings from its re-evaluation of the herbicide’s safety. Eventually, after Brazil’s Solicitor General filed an appeal backed by the Agriculture Ministry, arguing that the suspension would harm farmers and potentially result in a loss of around USD 25 billion in export earnings, the injunction was overruled. The Appeals Court maintained that the injunction would harm the country’s economy. "]
[2018,"October","Pest control and pesticide regulations – United States – glyphosate:  In July, a federal judge ruled that lawsuits linking glyphosate use to cancer could proceed to trial. Separately, in August, a federal court awarded USD 289 million to a man who claimed that his cancer was caused by prolonged contact with glyphosate. According to the ruling, the herbicide’s producer failed to warn users about the cancer risks posed by the product."]
[2018,"October","Pest control and pesticide regulations – United States – dicamba:  The U.S. Environmental Protection Agency (EPA) is expected to soon release its decision on whether to renew its license for dicamba, a weed killer increasingly used in GM soybean and cotton fields (see also MPPU Oct.’17, Dec.’17 & Jan.’18). Reportedly, some industry representatives urged EPA to limit the herbicide’s use to the spring months, i.e. before crops are planted. On a related note, a U.S. Appeals Court is looking into claims that EPA failed to analyse the risks dicamba applications posed to nearby crops when it renewed the herbicides’ license two years ago."]
[2018,"October","Pest control and pesticide regulations – East Africa – aflatoxin:  Members of the East African Community plan to develop a policy framework to address the human and animal health threats posed by aflatoxin contamination. Reportedly, aflatoxins from fungi are widespread in the region and cause contamination of staple foods, especially groundnuts. Under the initiative, policy makers and other stakeholders will be sensitized on the need and possible measures to prevent aflatoxins from developing and to mitigate the impact of contamination. If successfully implemented, prevention and control measures have the potential to enable intra-regional trade and overseas exports of agricultural products."]
[2018,"October","Pest control and pesticide regulations – Canada – neonicotinoids:  In Canada, a final decision on the phase-out and virtual ban of outdoor agricultural uses of three pesticides belonging to the neonicotinoids group are expected next year (see also MPPU Dec.’16). Widely used to protect rapeseed, soybeans and other crops from insect attack, the chemicals have been linked to pollinator damage and harm to aquatic environments. Elsewhere, temporary bans on neo nicotinoids are in place in the EU, while no comparable steps have been taken in the United States (see also MPPU June’17)."]
[2018,"October","Pest control and pesticide regulations – Italy – Xylella fastidiosa: After three years of field trials, a group of Italian researchers presented an organic treatment for the containment of the bacterial disease affecting olive trees. The treatment rests on the bactericidal properties of a patented compound containing zinc, copper and citric-acid hydracids. Reportedly, best results are obtained when the treatment is combined with the removal of affected parts of the trees, regular pruning and routine soil harrowing."]
[2018,"October","Gene editing – industry news and regulatory issues – United States:  A US biotech company has developed, using innovative mutagenesis-based gene editing (GE) techniques, a high-oleic soybean variety alleged to offer improved nutritional and functional properties than conventional soybeans. In general, compared with traditional genetic modification methods, the development of GE crops requires considerably less time and carries much lower costs. Furthermore, in the United States, gene-editing of crops is not subject to cumbersome regulatory procedures (see MPPU Aug.’18). The concerned company expects to start marketing high-oleic soybean oil in late 2018 or early 2019. Being among the first GE products to reach the U.S. market, the launch will allow testing consumer acceptance of such type of food."]
[2018,"October","Gene editing – industry news and regulatory issues –  Germany / European Union:  The media reported that German’s multinational biotech firms BAYER and BASF both shelved plans to develop and market gene-edited plant varieties in Europe following the EU’s surprise decision to regulate such crops as genetically modified organisms (see MPPU Aug.’18). Reportedly, the EU’s regulatory approach to GE plants has resulted in prohibitively high market access costs. Other news reported that German’s Bioeconomy Council (a panel of scientists that advises the German Government) and a number of research institutions in the United Kingdom invited the European Commission to relax the regulations for GE crops. They warned that if strict rules on these crops continued to apply, industry funding could recede and GE research could shift to countries where such restrictions were not in place."]
[2018,"October","R&D and seed information – Oil palm waste:  Researchers from Nottingham University’s Malaysia branch presented two new processes to produce building materials and bioenergy prom oil palm processing waste. The first method consists of a zero-waste management system for palm oil mills that converts all solid biomass waste and palm oil mill effluent (or POME) into building material and bioenergy, whereas the second one focuses on the recycling of POME, which can be highly polluting when discharged into the environment."]
[2018,"October","R&D and seed information – Defatted sunflowerseed:  A US food ingredients company has developed food-grade sunflowerseed meal, by upgrading the product that is left after oil is extracted from seeds. Traditionally used exclusively as animal feed, sunflowerseed meal – in its re-purposed form – can provide consumers with a cheap, sustainable source of plant-based protein, according to the company"]
[2018,"October","R&D and seed information – Drought-tolerant soybean:  An Argentinian seed company announced the release of a new soybean variety that it claims to be more drought-tolerant than conventional varieties. The new variety has obtained regulatory approval in Argentina and the company plans to conduct trials on farmers’ fields in the forthcoming 2018/19 growing season."]
[2018,"October","R&D and seed information – Omega3-rich rapeseed:  In the United States, omega3-rich oil derived from a recently developed GM rapeseed variety (see MPPU Jan.’& Mar.’18) has been deregulated by the country’s Animal and Plant Health Inspection Service, which determined that the product is unlikely to pose plant pest risks. Approval by the country’s Food and Drug Administration is anticipated to follow prior to the start of the 2019 growing season. The oil, which can help reduce the aquaculture industry’s reliance on fish oil-based feed, already gained regulatory approved in Australia, while official reviews are still underway in Canada and China."]
[2018,"October","R&D and seed information – Sunflowerseed/soybean hybrids:  Hybrid sunflowerseed and soybean varieties developed through conventional breeding methods are ready for countrywide testing in Kazakhstan, local media reported. Reportedly, breeding activities focused on the following traits: early maturation, high yield potential, high oil content and herbicide resistance."]
[2018,"October","Futures markets – China:  On 13 August, the Dalian Commodity Exchange cut margin requirements for a number of contract, including soyoil and palm oil, and narrowed its trading limits on all contracts. Furthermore, on 22 August, the exchange halved its intra-day transaction fees for a number of contracts, including futures for soyoil, palm oil and soymeal as well as for soymeal options. On 30 August, the exchange also reduced the number of delivery dates for soybean futures from nine to six and limited the forward curve to 12 months, instead of 18."]
[2018,"October","Storage infrastructure – Brazil:  According to media reports, two Brazilian banks have launched new credit lines specifically earmarked for the construction, expansion or renovation of on-farm grain storage facilities."]
[2018,"October","Oil palm sector – governmental initiatives – Indonesia:  Complementing efforts to raise domestic demand for palm oil (notably for biodiesel production), the Indonesian Government is supporting initiatives to establish palm oil processing facilities overseas. According to the media, joint ventures to set up refineries – that would source crude palm oil primarily from Indonesia – in Pakistan (for food-grade oil production) and in the United States and Europe (for aviation fuel production) have been promoted."]
[2018,"October","Oil palm sector – governmental initiatives – Malaysia:  According to local media, Malaysia’s Primary Industry Ministry sought the assistance of the government of Sabah state to ensure that local smallholders obtain Malaysian Sustainable Palm Oil (MSPO) certification, which is due to become mandatory across the country on 1 January 2020. Last year, Sabah’s authorities announced plans to proceed with a separate certification scheme (see MPPU Dec.’17). Based on official data, across the country, merely 5.2 percent of the 2.27 million hectares of smallholder’s plantations had achieved MSPO certification as of July 2018."]
[2018,"October","Oil palm sector – governmental initiatives – Malaysia / Switzerland:  Official sources reported that Malaysia and Switzerland agreed to cooperate on issue relating to palm oil. The two countries decided to set up an expert committee to explore opportunities towards sustainable production, bilateral trade, exchange of information about relevant technologies, and possible collaboration in downstream palm oil industry applications. Contributing to address the issue of increasingly negative consumer perception, the bilateral initiative is aimed at securing Malaysia’s palm oil exports to Switzerland – without harming Switzerland’s rapeseed producers. Switzerland maintains its target of covering about one third of domestic vegetable oil consumption through locally produced rapeseed."]
[2018,"October","Oil palm sector – industry initiatives – Responsible sourcing:  Global beverage company PepsiCo has suspended its palm oil purchases from an Indonesian palm oil producer over allegations that the latter breached labour and human rights, including child labour, insufficient pay, and safety breaches. Reportedly, PepsiCo has taken steps to ensure that none of its direct suppliers source palm oil from the concerned producer, who, in turn, stated that he complied fully with the RSPO complaints panel process and that his estates and mills operate in conformity with all relevant Indonesian laws and RSPO (Roundtable on Sustainable Palm Oil) criteria. On the same subject, global foods and drinks company Nestlé informed that it would accelerate its ‘no deforestation’ commitment by implementing 100% satellite monitoring coverage of its oil supply chain worldwide. Reportedly, the company would rely on a service developed by Airbus and The Forest Trust as a global verification system evidencing, in almost real-time, where deforestation takes place. By end of the year, all of the land supplying Nestlé with palm oil is expected to be covered by the system. Furthermore, a large Malaysian palm oil producer and oleochemicals firm that is also active in Indonesia and Liberia committed to strengthen its policies on supply traceability, zero-deforestation, peatland protection, workers’ rights and safety  and health at the workplace, adding that it would release an action plan to ensure compliance by the end of the year.       "]
[2018,"October","Oil palm sector – industry initiatives  – Joint venture:  China’s state-owned trading and food processing group COFCO has signed a joint venture agreement with a large Malaysian plantation company to set up plants in Malaysia for the production of palm oil-based products for the Chinese market."]
[2018,"October","Oil palm sector – industry initiatives –  Certification assistance:  In Malaysia, a large palm oil company has developed an on-line reporting tool to help suppliers meet the MSPO national certification criteria. Reportedly, the tool allows suppliers to assess their performance based on both MSPO requirements and the company’s own ‘no deforestation–no peat–no exploitation’ policies. The tool was developed in collaboration with the Malaysian Palm Oil Certification Council."]
[2018,"October","Oil palm sector – industry initiatives  – Palm oil-free certification:  POFCAP, the voluntary International Palm Oil Free Certification Accreditation Programme, informed that it gained regulatory approval in 9 countries (Australia, Austria, France, Finland, Italy, Spain, Sweden, United Kingdom, United States), with applications pending in 5 others. Companies opting to display the Programme’s certification trademark are assessed and certified palm oil and palm oil derivatives free."]
[2018,"October","Oil palm sector – RSPO news – Standards revision and investors pressure:  The palm oil sector’s history of environmental and social impacts has come under unprecedented public scrutiny in recent years and is attracting the attention of international media and policy makers. In this context, RSPO, the globally recognized, voluntary palm oil certification programme has come under pressure to strengthen its standards on sustainable palm oil production. The body is currently engaged in a review of its principles and criteria and remains committed to release revised standards for 2019-2023 before the end of the year. Reportedly, public consultations have so far resulted in more than 10 000 comments. RSPO is characterized by a diverse membership comprising producers (both large plantation companies and smallholders), mills, traders, consumers, advocacy groups, banks and investors – i.e. groups with differing and often difficult to reconcile interests. As a result, the body needs to find a balance between making sustainable production mandatory and minimizing negative effects on rural development and poverty alleviation, as pointed out by a civil society group. Market experts cautioned that if the body does not succeed in imposing stricter production standards, buyers could be forced to look for alternative ways of monitoring their supply chains to meet their ‘no deforestation–no peatland–no exploitation’ pledges, which would be costly and time-consuming, in addition to raising credibility issues. On the same subject, a group of institutional investors has called on RSPO to strengthen its standards, including by banning all forms of deforestation and adopting stricter rules regarding carbon-rich peatland, pesticide use and workers’ rights. Furthermore, regarding the right to ‘free, prior and informed consent’ of local communities, investors called for additional direction on protections for human rights defenders. Moreover, RSPO should require companies to disclose concession maps in digital format and to submit management plans for the conservation of forests within their concessions. The investors also underlined the importance of a robust accountability system and an expedient and credible complaints and sanctions mechanism. Coordinated by social society group Ceres, the investors’ initiative was meant as an input to the on-going review of the RSPO’s principles and criteria."]
[2018,"October","Oil palm sector – RSPO news – Smallholder certification:  Global consumer goods company Unilever pledged to foster support work in Sabah state, Malaysia by aiding in the restoration of wildlife habitats and helping 60 000 hectares of smallholder oil palm plantations achieve RSPO certification. The initiative supports the state’s jurisdictional approach to certification (see also above and MPPU Dec.17). "]
[2018,"October","Oil palm sector – RSPO news – Certification bodies:  RSPO held a workshop for accredited certification bodies (CBs) aimed to align its partners’ interpretation and understanding of RSPO standards and procedures. Participating CBs originated from Malaysia, Indonesia, Thailand and Africa.   "]
[2018,"October","Oil palm sector – RSPO news –  Market penetration:  A Chinese and an Ecuadorian food company pioneered the marketing of RSPO-certified palm oil in their respective countries. Allegedly, the companies, which committed to sourcing 100% RSPO-certified palm oil and using the RSPO trademark on their product packaging, reported positive results, which, according to RSPO, indicates that sustainability is becoming a factor in consumer purchases in those markets."]
[2018,"October","Oil palm sector – RSPO news – GHG emission savings:  A RSPO-commissioned study focusing on plantations established according to the body’s recommended planting methods (or New Plantation Procedures, NPP) claims that the avoidance of land clearance and peatland conversion, together with carbon dioxide sequestration from set-aside conservation areas, can lead to a drastic reduction of GHG emission levels in plantations."]
[2018,"October","Oil palm sector – RSPO news  – Protection of human rights defenders:  RSPO has adopted a Policy on Human Rights Defenders, Whistle-blowers. Complainants and Community Spokespersons. Under the new policy, the listed groups of persons can lodge confidential complaints with the body’s complaints panel concerning activities undertaken by RSPO members that may undermine the safety or security of the said individuals.   "]
[2018,"October","Oil palm sector – third party assessments – CIFOR:  The Indonesia-based Center for International Forestry Research (CIFOR), has published a study that analyses how three possible scenarios for future oil palm development would affect Indonesia’s Borneo island. The scenarios considered foresee i) business as usual, ii) strict conservation plans, or iii) expansion guided by sustainable area intensification. The latter scenario envisions that plantations are only expanded on suitable areas, while yields are lifted to about 5 tonnes of crude palm oil per hectare through improved cultivars and intensive management methods. The study looks at how carbon storage, habitat quality, water yield and palm oil/timber production are affected under each scenario. One of the study’s main conclusions is that – by protecting remaining forests, converting only degraded and non-forested land, and implementing crop-enhancements – Indonesia could preserve the economic value of its land while still meeting future demands for palm oil. Moreover, more detailed studies at the village and household level are recommended to better understand the impacts of oil palm expansion on local communities and the environment. "]
[2018,"October","Oil palm sector – third party assessments – Greenpeace:  In a new report, the civil group claims that deforestation-linked palm oil continued findings its way into global consumer brands. Allegedly, leading consumer good firms, commodity traders and palm oil companies conform only in part to their own zero-deforestation and human rights protection pledges and risk not meeting their self-imposed 2020 deadlines. Greenpeace called on consumer brands to stop buying palm oil from traders and producers associated with deforestation until these manage to effectively monitor their complex supply chains. The organization also underlined the importance of public transparency, stakeholder engagement and independent compliance verification. Moreover, Greenpeace identifies the circumstance that, in addition to relying on their own plantations, large traders buy from many other suppliers – whose plantations fall outside their direct control – as one of the main challenges facing the industry."]
[2018,"October","Oil palm sector – peatland fires:  Media reported that, after two relatively fire-free dry seasons, fires on peatland (and the resulting haze problems) have returned on Indonesia’s Borneo and Sumatra islands – despite wide-ranging programmes enacted by the Government to restore peatland following the heavy fires of 2015 (see MPPU Feb.’16 & Mar.’18). Reportedly, the new fires developed both on smallholder farms and in concessions of large companies and in some instances include areas that had been prioritized for peat protection and peat restoration activities."]
[2018,"December","ARGENTINA – biodiesel export measure:  Argentina requested formal consultations with Peru at the WTO over the anti-dumping duties Peru put in place on imports of biodiesel from Argentina in February 2016 (see MPPU Nov.’16). Prior to the introduction of the trade barrier, Peru represented Argentina’s second largest export market after the United States."]
[2018,"December","BRAZIL – biofuel policy:  The National Council for Energy Policies proposed a gradual increase from 10 percent to 15 percent in the mandatory share of biodiesel in regular transport diesel consumed in Brazil. The proposal envisages annual increases by 1 percent starting in June 2019. The additional 5 percent blending would raise Brazil’s biodiesel consumption by approximately 85 percent between 2018 and 2023, lifting national biodiesel production to 8.8 million tonnes – compared to the current level of 4.8 million tonnes. To date, soybean oil has been the principal feedstock used."]
[2018,"December","CHINA – trade mitigation:  The Chinese Government introduced a variety of measures meant to mitigate the impact of its retaliatory tax on U.S. soybeans on domestic markets, while reducing the country’s reliance on imported soybeans for feed."]
[2018,"December","CHINA – trade mitigation measures – government auctions:  During 2018, cumulative offers of soybeans from government reserves have been raised to 5.66 million tonnes (as opposed to 0.55 million tonnes last year), with actual sales totalling 2.01 million tonnes (compared to 0.22 million tonnes in 2017)."]
[2018,"December","CHINA – trade mitigation measures – farm support:  In a bid to boost soybean output, the Government of Heilongjiang, the country’s top soybean growing province, has increased area-based payments granted to soybean growers in 2018 to CNY 320 per mu (USD 696 per ha), which compares to CNY 173 per mu (USD 376 per ha) paid last year. At the same time, the northeastern province sharply reduced its 2018 subsidies for maize growers. Furthermore, China’s central Government announced a reduction in the price support for wheat growers: following this year’s reduction, in 2019, the minimum purchase price for wheat would be reduced further to CNY 112 per 50 kg (USD 325 per tonne)."]
[2018,"December","CHINA – trade mitigation measures – feed standards:  The central Government backed new voluntary standards approved by the country’s Feed Industry Association to promote a shift towards high-efficiency low-protein animal diets. Under the revised norms, the recommended minimum protein inclusion rate in feed formulations has been lowered by 1.5 percentage points for pig feed and 1 percentage point for poultry feed. According to government officials, the new guidelines could lower China’s annual soybean requirement by up to 14 million tonnes, which would correspond to a 15 percent fall from current consumption levels."]
[2018,"December","CHINA – trade mitigation measures – import policy:  China’s state-owned grain corporation Sinograin and government officials from Argentina agreed to increase China’s imports of Argentine soymeal and soyoil, pending inspections of Argentine crushing facilities by Chinese officials. With a view to diversify sources of protein for use in animal feed, the Chinese Government also approved the resumption of rapeseedmeal imports from India (which had been banned in 2011 over quality concerns), subject to inspection and quarantine requirements. China and India also signed an agreement allowing Chinese officials to inspect imports of Indian fishmeal and fishoil. Furthermore, Chinese customs authorities approved imports of rapeseedmeal from Kazakhstan. Moreover, Chinese government officials conducted talks with Brazilian soy processors with regard to possible imports of Brazilian soymeal at preferential conditions. On the same subject, earlier this year, China i) removed tariffs on soybean, soymeal rapeseed and fishmeal imported from five Asian nations (see MPPU Aug.’18), ii) started allowing soymeal imports from Ethiopia, and iii) agreed to import shelled sunflowerseed from Bulgaria. "]
[2018,"December","CHINA – trade mitigation measures – export policy:  With a view to protect domestic supplies, on 1 November, the Government discontinued an 11 percent value-added tax rebate hitherto applied to soymeal exports."]
[2018,"December","CHINA – trade mitigation measures – overseas investment:  Government and industry officials from China and the Russian Federation discussed about possibilities to develop oilcrop production in the Federation’s far-eastern districts for eventual exportation to China. On the same subject, China’s state-owned grain trading group COFCO is continuing to expand its presence in Brazil’s Centre-west grain belt. The company’s overall annual purchases and exports of maize and soybean in Brazil are estimated to have reached 13 million tonnes."]
[2018,"December","EUROPEAN UNION – bioenergy policy:  The EU’s Council and Parliament have formally approved key chapters of the bloc’s bioenergy policy reform, including the plan to phase-out, by 2030, the consumption of crop-based biofuels that bring about strong indirect land use changes (see also MPPU Aug.’18)."]
[2018,"December","EUROPEAN UNION – food standards/safety:  The European Commission proposed setting an EU-wide maximum limit of 2 percent for trans fats (other than trans fat naturally occurring in animal fat) in food products. Under the draft regulation, food operators would have until 1 April 2021 to ensure compliance with the new requirement. Industry stakeholders have been given 4 weeks to submit comments on the proposal. In recent years, the presence of hydrogenated vegetable oils – the primary dietary source of industrial trans fats – has been regulated in several countries, including a number of EU member states (see also MPPU Feb.’16, Oct.&Dec.’17, May&Aug.’18). According to an EU consumer organization, while average levels of industrial trans fat in foods decreased in general, content of the unhealthy fatty acid can remain high in specific products in some countries. The group regretted the envisaged long transition period.      "]
[2018,"December","EUROPEAN UNION – biodiesel import restrictions:  According to media reports, the European Commission is considering to reinstate anti-subsidy duties on imports of biodiesel from Argentina, citing an imminent threat of material injury caused to the EU’s biodiesel industry (see also MPPU Oct.’18). Reportedly, retaliatory duties could range from 25 percent to 33, depending on the company concerned. The move would require approval by the bloc’s member states. The deadline for introducing definitive measures is 27 February 2019."]
[2018,"December","FRANCE – climate policy:  Following a public consultation process, the French Government has finalized its ‘National Strategy to Combat Imported Deforestation’. The new policy could affect imports of, inter alia, soybeans and palm oil (see also MPPU Oct.’18). Aimed at ending ‘imported deforestation’ by 2030, the Government’s action plan envisages 17 measures, covering the following areas: i) financial assistance for exporting countries that introduce strict forest protection policies; ii) the introduction of ‘zero-deforestation’ labels across domestic industries, starting with the agricultural and forestry sectors; iii) the implementation of zero-deforestation public procurement policies; iv) the gradual phasing-out of biofuels linked to deforestation; and v) actions in support of an EU-wide policy on imports that pose risks for forests."]
[2018,"December","INDIA – farm support – minimum support prices:  In October, the Indian Government announced the new state-mandated minimum prices for Rabi (winter) crops. For rape and mustardseed, the support price was raised by 5 percent, from INR 40 000 per tonne to INR 42 000 (or USD 597), while the safflowerseed price saw a 21 percent increase, from INR 41 000 per tonne to INR 49 450 (or USD 703). With the new price levels, farmer returns are deemed to exceed production costs by 90 percent in the case of rape/mustardseed and 50 percent for safflowerseed, which compares to estimated margins of 113 percent for wheat."]
[2018,"December","INDIA – farm support – public procurement:  Following the recent launch of a new procurement scheme for oilseeds and pulses (see MPPU Oct.’18), the Indian Government recently approved proposals from 11 states for procurement operations during the Kharif (summer crops) marketing year that started in October. Reportedly, the decision was taken after sharp price falls in key growing regions. According to official sources, over 2.6 million tonnes of oilseeds will be procured."]
[2018,"December","INDIA – food safety:  India’s Food and Drug Administration ordered the closure of an edible oil branding and repackaging facility after detecting sales of adulterated oil. Reportedly, the concerned operator blended relatively expensive mustard oil with cheaper edible oils and failed to test his products periodically before sale."]
[2018,"December","INDONESIA – export policy:  Concerned about the steady, sharp fall in palm oil export prices and its adverse impact on the country’s export-oriented oil palm industry, the Indonesian Government decided to suspend the country’s levy on palm oil exports, which amounts to USD 50 and USD 20–40 per tonne respectively for crude and refined palm oil. The move is aimed at maintaining the products’ competitiveness in overseas markets. Introduced in 2015, the levy is used to subsidize the country’s biodiesel programme as well as sector development activities, such as palm replanting schemes (see MPPU July’15). Reportedly, the levy will be reintroduced as prices rise: once palm oil prices recover to USD 500 per tonne, exports of crude and refined palm oil will be charged with, respectively, USD 25 and USD 5–10 per tonne, whereas levies of USD 20-50 will be collected when prices reach at least USD 550 per tonne.             "]
[2018,"December","MALAYSIA – biodiesel policy:  Acknowledging the recent narrowing in the gap between palm oil and mineral oil prices, the Malaysian Government decided to implement its long-standing plan to raise the country’s mandatory blending rate for biodiesel (see also MPPU Aug.’18). Reportedly, the new policy – which would require transport diesel to be mixed with 10 rather than 7 percent of palm oil-based biodiesel – will be phased in from 1 December 2018, with mandatory blending taking effect on 1 February 2019. In addition to the compulsory 10 percent-blends in the transport sector, a 7 percent blending rate is set to become mandatory for the industrial sector from July of next year. The measures are expected to boost domestic demand for palm oil and support the oil’s price, which, due to large domestic inventories, has dropped to multi-year lows."]
[2018,"December","MALAYSIA – tax policy:  Government officials informed that, under the country’s newly introduced Sales and Service Tax (SST) regime, oil palm growers will not be subject to taxation. As opposed to the previous taxation scheme, where a Goods and Service Tax (GST) was levied on both locally produced and imported fresh oil palm fruit branches (FFB), the SST will only be collected on imported FFB, so as to protect the interests of the domestic oil palm industry.        ","        "]
[2018,"December","UNITED STATES – agricultural support policies – Farm Bill:  Legislators from the Senate and the Lower House announced that an agreement in principle has been reached on the 2018 Farm Bill. The bill includes programmes of critical importance for US farmers. The last 5-year bill expired on 30 September 2018, and lawmakers have until the end of the current year to finalize the approval process."]
[2018,"December","UNITED STATES – trade mitigation measures – agricultural relief package:  As of mid-November, USDA paid out nearly USD 840 million to farmers, as part of a first tranche of payments worth USD 6 billion intended to compensate farmers for losses incurred due to China’s imposition of tariffs on U.S. agricultural exports (see also MPPU Aug.&Oct.’18). Reportedly, soybeans, wheat, maize, dairy and hog producers benefitted the most from the subsidies. While details about a second USD 6 billion tranche are still to be provided, the USDA confirmed that it has no intention to renew the aid package in 2019.        "]
[2018,"December","UNITED STATES – biodiesel import restrictions:  The U.S. Department of Commerce initiated a ‘changed circumstances review’ to examine the anti-dumping and countervailing duties it placed on imports of Argentine biodiesel in late 2017 and early 2018 (see MPPU Mar.&May’18). The review process has been opened on request of the Argentine Government, following the latter’s decision to i) raise the country’s export tax on soybean-based biodiesel, ii) lift the domestic biodiesel price, and iii) lower the country’s export tax on soybean products (see MPPU Aug.&Oct.’18). A reduction or repeal of the retaliatory tariffs can be expected to lead to a resumption of biodiesel imports from Argentina, which would likely hurt US biodiesel producers and dampen domestic soybean uptake. A ‘changed circumstances review’ can take up to 270 days, meaning that a final determination should be reached by August 2019.  "]
[2018,"December","UNITED STATES – biofuel policy – blending obligations:  The U.S. Environmental Protection Agency (EPA) finalized the biofuel blending obligations for 2019. Compared to the previously proposed targets (see MPPU Dec.’17 & Aug.’18), the volume for the ‘advanced biofuel’ category – under which biodiesel qualifies – has been raised slightly (from 4.88 billion gallons to 4.92 billion gallons), while the requirements for ‘conventional biofuel’ and ‘biomass-based biodiesel’ have been left unchanged. Biodiesel industry representatives maintained that the new standards fall short of the attainable production levels. Furthermore, EPA opted not to reallocate blending obligations previously waived under the agency’s small refinery exemption programme, thus not satisfying calls made by both biofuel producers and farmers groups."]
[2018,"December","UNITED STATES – biofuel policy – biodiesel tax incentive:  The USD 1 per gallon tax credit traditionally accorded to biodiesel blenders expired back in December 2017 (see MPPU Mar.’18). In this regard, the Lower House is currently reviewing a proposal for a long-term extension of the incentive. Over the past five years, Congress allowed the tax incentive to expire, eventually granting retroactive one-year extensions. Industry representatives long advocated for a multi-year renewal to provide certainty and predictability for producers and feedstock suppliers."]
[2018,"December","UNITED STATES – food standards:  According to the U.S. Food and Drug Administration, credible evidence supports a qualified health claim that consuming edible oils rich in oleic acid – such as olive oil and high-oleic variants of sunflower, rapeseed, safflower, soybean and algal oil – may reduce the risk of coronary heart disease."]
[2018,"December","Variable palm oil export tax – Malaysia, Indonesia:  Following fresh drops in the reference market price for palm oil, Malaysia decided to keep its export tax on the commodity at zero for the months of November and December. Also in Indonesia the export tax on crude palm oil remained at zero in November and December, as benchmark prices continued to range below the threshold that triggers taxation. The month of December marks the twentieth month in succession with no export tax in Indonesia."]
[2018,"December","Pesticide regulation – dicamba:  In the United States, the use of dicamba-based herbicides has been re-authorized for a period of two years (see also MPPU Oct.’18). The U.S. Environmental Protection Agency extended, until 20 December 2020, the registration for over-the-top use (i.e. use on growing plants) of dicamba to control weeds in fields of soybean and cotton genetically modified to resist the herbicide. To minimize potential off-site damage to non-targeted crops, the authorization includes provisions limiting the number of allowed applications as well as the period and times of the day when the herbicide can be applied. "]
[2018,"December","Pesticide regulation – glyphosate:  A U.S. court confirmed an earlier verdict that found glyphosate-based herbicides responsible for a man’s terminal cancer, but decided to lower the USD 250 million punitive damages portion of the award to USD 39 million (see also MPPU Oct.’18).     "]
[2018,"December","Sector development measures – European Union – protein crops:  As part of efforts to develop a strategy for promoting protein-rich crops including soybeans (see MPPU Mar.’18), the European Commission has published a report that reviews the supply and demand situation for plant proteins in the EU and explores ways to increase production in an economically and environmentally sustainable manner. The report includes an analysis of existing and new policy instruments to help realize the potential of protein crops in the union."]
[2018,"December","Sector development measures – Fiji – coconut sector:  The Government of Fiji launched a programme to develop the country’s coconut industry and enhance the supply of copra. Reportedly, interventions will focus on rejuvenating the country’s coconut palms, largely relying on public-private partnerships."]
[2018,"December","Sector development measures – The Gambia – edible groundnuts:  With assistance from the Turkish Cooperation and Coordination Agency (TIKA), a Gambian groundnut oil processing factory has been equipped with a laboratory to test its products for aflatoxin, a family of toxins linked to cancer in humans. Controlling aflatoxin contamination in groundnut is expected to help mitigate national health risks and enhance exporters’ access to the European market."]
[2018,"December","Sector development measures – India – groundnut sector:  The Government of Gujarat state plans to assist farmers in setting up cooperatives to run their own groundnut mills and other value addition units so as to shield farmers from market prices fluctuations and reduce their dependence on private millers."]
[2018,"December","R&D – seed news – low-gossypol cottonseed:  Using genetic modification techniques, US researchers have developed a cotton variety with low gossypol presence in the seed. Gossypol is a toxic compound that naturally occurs in conventional cottonseed varieties. The new variety could help lower cottonseed refining costs and would allow expanding cottonseed use in the livestock and aquaculture feed industries as well as in human food applications. Last October, the variety has been deregulated by the U.S. Animal and Plant Health Inspection Service."]
[2018,"December","R&D – seed news – camelina:  In the United States, plant scientists are conducting research on genetically modified camelina sativa to boost the plant’s oil output and reduce the amount of energy refineries require to convert the oil into fuel. (See also MPPU Oct.17)"]
[2018,"December","R&D – seed news – rapeseed:  Reportedly, a new genetically modified rapeseed variety that allows later and more frequent herbicide applications is ready to be launched in Australia. Reportedly, the variety’s commercial release is kept pending until Chinese authorities approve the new event for import.          "]
[2018,"December","R&D – product development – shortenings:  After the introduction of a trans fat ban in the United States (see MPPU Aug.’18), the country’s food industry has come under pressure to replace partially hydrogenated vegetable oils used in the production of shortenings. Reportedly, the industry is focusing its attention on high-oleic oils and special modification techniques such as enzymatic interesterification and optimal crystallization conditions."]
[2018,"December","R&D – product development – edible oil recycling:  Reportedly, in Germany, a group of researchers has developed a catalytic process that allows converting waste oils into chemical building blocks for drugs and plastics. On the same subject, scientists in Australia and the UK have developed a controlled-release fertilizer using recycled rapeseed oil. Furthermore, US researchers have developed new industrial uses for soybean oil in the form of wax. Reportedly, fully recyclable and biodegradable soyoil-based wax can replace petroleum-based paraffin wax.          "]
[2018,"December","Futures markets:  According to media reports, the US futures exchange operator CME Group contemplated the launch of a Brazilian soybean contract, given that the recent US–China trade conflict altered the global soybean trade pattern, causing the price paths for Brazilian and US soybeans to diverge. Market experts confirmed that premiums placed on Brazilian soybeans are difficult to hedge via the Chicago Board of Trade’s existing US-specific soy contracts.","    "]
[2018,"December","Preferential trade – Indonesia / Switzerland:  The two countries concluded free trade negotiations as part of a Comprehensive Economic Partnership Agreement between Indonesia and EFTA (the European Free Trade Association comprising Iceland, Liechtenstein, Norway and Switzerland). Indonesia’s palm oil shipments are expected to benefit from the agreement, subject to provisions regarding the sustainability of production and provided they do not harm Swiss oilseed production."]
[2018,"December","Preferential trade – Indonesia / Pakistan:  The two nations are conducting negotiations to convert an existing preferential trade pact into a more comprehensive free trade agreement, which could foster Indonesia’s palm oil shipments to Pakistan and strengthen Pakistan’s role as a regional trade and investment hub for palm oil products."]
[2018,"December","Preferential trade – China / Malaysia:  A recently signed memorandum between China’s state-owned grain trading group COFCO and a government-owned Malaysian palm oil corporation aims at the promotion of palm oil related ventures and increased trade between the two countries. According to media reports, the agreement reached envisages i) joint projects on the health benefits of palm oil products, ii) investments in the manufacturing of specialty oils/fats, and iii) collaborative efforts to develop the market for high-value palm oil products in China. (See also MPPU Oct.’18)"]
[2018,"December","Preferential trade – India / Malaysia:  The Comprehensive Economic Cooperation Agreement signed between the two countries in 2011 provides for a cut, from 1 January 2019, in India’s import duties on Malaysian palm oil. The new preferential tariff rates for crude and refined palm oil will be, respectively, 40 percent and 45 percent. For comparison, India’s current MFN rates for crude and refined palm oil stand at 44 and 54 percent."]
[2018,"December","Oil palm sector – state initiatives – Indonesia:  An in-depth assessment of the Indonesian oil palm industry carried out by the country’s Corruption Eradication Commission (KPK) identified major flaws in the nation’s plantation licensing system. The agency’s report highlights a number of associated problems, including i) rapid and widespread environmental degradation, ii) heightened corruption risks, and iii) the potential loss of tax and non-tax revenues.    "]
[2018,"December","Oil palm sector – private sector & other initiatives – responsible sourcing:  Global packaged foods company Mondelez International informed that it called on its palm oil suppliers to commit to zero-deforestation policies and comprehensive oil palm concession mapping, adding that it has excluded 12 upstream suppliers from its supply chain because of breaches. On a related matter, global foods and drinks manufacturer Nestlé announced that it would end sourcing palm oil from suppliers that fail to comply with its sustainability policies as the company embraces satellite technology that allows tracing deforestation."]
[2018,"December","Oil palm sector – private sector & other initiatives – national coalition, India:  India has seen the launch of a Sustainable Palm Oil Coalition, India-SPOC, as a collaborative effort between the Centre for Responsible Business, WWF-India, Rainforest Alliance and the Roundtable on Sustainable Palm Oil (RSPO). As the world’s largest consumer and importer of palm oil, India could play a significant role in driving sustainable practices in the palm oil sector worldwide. The initiative is aimed at addressing barriers and challenges to sustainable palm oil, taking into consideration the characteristics of India’s palm oil industry. Activities will focus on best practices for production, complementary policy measures, trade linkages, and consumer sensitisation to sustainability. Producers, civil society groups, consumer goods manufacturers, retailers, traders and financial institutions will be invited to collaborate. Recently, a comparable initiative has been launched in China, the world’s third largest palm oil importer (see MPPU Aug.18)."]
[2018,"December","Oil palm sector – private sector & other initiatives – mapping tool, Indonesia:  The Centre for International Forestry Research (CIFOR) plans to release an interactive map showing the spread of plantations and road networks in Indonesia’s Papua region. The atlas, which is expected to shed light on the status of the region’s forests, is meant to inform the policymaking and planning of local officials, raising their awareness about possible adverse impacts on the environment and indigenous communities."]
[2018,"December","Oil palm sector – RSPO news – revised standard:  Following an in-depth multi-stakeholder review of its principles and criteria, RSPO, the global, industry-led palm oil certification body, has adopted a new certification standard aimed at strengthening environmental protection, social development and economic prosperity across the palm oil value chain. The revision of the existing standard was framed around four key elements: i) halting deforestation, ii) protecting peatlands, iii) strengthening human and labour rights, and iv) enhancing transparency in the RSPO system – pursuing the ultimate objective to increase market uptake of sustainable palm oil. New features include specific provisions to protect children and the adoption of zero-deforestation requirements in high forest cover landscapes using the High Carbon Stock Approach. The latter bans the clearance of secondary forests and certain peat areas (which was allowed under RSPO’s existing standard), while respecting land users’ rights and upholding indigenous peoples’ rights to self-determination. The new standard has come into effect immediately, though existing RSPO grower members were given a one-year transition period for its adoption. The review process also resulted in the subsequent development of a separate standard specifically covering independent smallholders, due for approval in November 2019. Environmental and civil society groups welcomed the release of the new standard, urging RSPO to proceed with its immediate implementation and effective enforcement, ensuring close supplier oversight, independent verification, and a strict compliance and grievance system."]
[2018,"December","Oil palm sector – RSPO news – grievance case:  RSPO suspended the membership of a Malaysian palm oil mill and four of its suppliers over alleged labour right abuses. Reportedly, a complaint filed back in 2015 had identified instances of forced labour, poor living conditions and unfair terms of employment. Inter alia, the concerned company outsourced its foreign workers to contractors, an act that violates Malaysian law and could be considered as trafficking."]
[2018,"December","Oil palm sector – RSPO news – annual report:  According to RSPO’s 2018 Impact Report, as of June 2018, the organization’s members covered 3.2 million hectares of certified area, globally, producing 13.6 million tonnes of certified sustainable palm oil. High Conservation Value (HCV) land set aside and managed by RSPO members is estimated to amount to 263 000 hectares – reportedly a 39% increase from the previous reporting year. The report also highlights the reduction of carbon dioxide emissions found through GHG assessment submissions received since 2015, linking the same to the conservation of peatlands.              "]
[2018,"December","Soybean production sustainability – South America:  New efforts to promote sustainable soybean production (thereby meeting growing demand for sustainably produced soy in Europe and elsewhere) have been reported from Brazil. In the Cerrado region, a vast savannah zone in the country’s Centre-West, clearance of native forests and vegetation progressed rapidly in the last 15–20 years to free space for the cultivation of soybeans and other crops and pasture land – a development fuelled by attractive land prices, less stringent forest preservation requirements compared to those applied in the Amazon basin, and the absence of binding private sector initiatives to protect the environment. Experts pointed out that unchecked crop expansion in the biodiverse Cerrado ecosystem, which is home to important aquifers and river systems, could result in soil degradation, water table and aquifer pollution, changes in regional, and possibly continent-wide, rainfall patterns, and sharp reductions in carbon dioxide storage. Reportedly, vast areas of dry forests in Argentina’s Gran Chaco region are confronted with identical challenges. (On past initiatives, see also MPPU June’11, June’16 & May’18)"]
[2018,"December","Soybean production sustainability – Brazil – Cerrado Manifesto:  According to media reports, the number of companies voluntarily adhering to the Cerrado Manifesto – an initiative launched last year by environmental organizations to promote measures that help end the conversion of native vegetation in Brazil’s Cerrado biome – continues to grow. Besides calling for stricter and more effective environmental legislation, the Manifesto calls on companies in the soy and meat supply chains to i) adopt policies to end the conversion of native vegetation, and ii) dissociate their production chains from recently deforested areas. Reportedly, over 100 investors and corporate firms, including several global food chains and supermarkets, have signed on to the agreement. However, market observers pointed out that global commodity traders, which are very active in the Cerrado, have been slow in joining the initiative. Moreover, in contrast to the Amazon Soy Moratorium (which does enjoy the participation of global commodity traders), it remains unclear whether signatories to the Cerrado Manifesto – besides pledging to take measures that contribute to the elimination of native vegetation loss from their supply chains – also explicitly commit to stop purchasing farm products grown on freshly cleared land."]
[2018,"December","Soybean production sustainability – Brazil – responsible lending:  Global commodity trader Bunge, Banco Santander and The Nature Conservancy (TNC) announced that they jointly developed an innovative financing mechanism for soy farmers in Brazil’s Cerrado region. The programme promotes crop production that foregoes further deforestation or conversion of native vegetation by offering long-term loans to farmers willing to commit to the approach. The initiative is aimed at limiting production expansion to land that has been cleared already, thus going beyond the existing environmental regulations. TNC estimates already cleared land in the Cerrado suitable for soybean production at 25 million hectares. Under the programme, loans will be provided to individual, family or corporate farmers in eligible locations."]
[2018,"December","Soybean production sustainability – Brazil – state sanctions:  Earlier this year, Brazil’s environmental agency IBAMA issued fines worth USD 29 million to five large trading firms as well as dozens of farmers for failing to respect embargoes that were put on illegally deforested land located across the country’s Cerrado region. The case concerned grains grown on land declared off-limits for farming to allow native vegetation to regrow. IBAMA detected the concerned areas using geospatial data."]
[2019,"January","ARGENTINA – biodiesel price:  After upward adjustments in August and September 2018 (see MPPU Oct.’18), the government-set price that oil companies are required to pay for biodiesel has been raised further to ARS 27 529 per tonne (USD 733) in October and ARS 28 112 (USD 748) in November 2018."]
[2019,"January","CANADA – sector development measure:  Canada’s Federal Government announced a CAD 3.7 million (USD 2.8 million) investment into the Eastern Canada Oilseeds Development Alliance, ECODA. The funds have been earmarked for the following activities:  i) development of new oilseed crop varieties for eastern Canada; ii) product innovation to boost market opportunities and value added products; iii) improved land use and crop rotation options; and iv) improved pest resistance and soil preservation."]
[2019,"January","CHINA – trade mitigation measures:  The Chinese Government introduced additional measures to mitigate the impact of its retaliatory import tariff on U.S. soybeans on the domestic market (see also MPPU Dec.’18). The Government announced plans to remove, from 1 January 2019, import tariffs on meals that can replace soybean meal in animal feed, notably meal obtained from rapeseed, cottonseed, sunflowerseed and palm kernel. Furthermore, to increase the diversity of its soybean supply origins, imports of soybeans from Bolivia have been allowed. Moreover, following the start of a new round of trade talks with the United States (aimed at resolving the two countries’ controversies by 1 March 2019), China’s state-owned enterprises have been directed to resume purchases of U.S. soybeans. To date, acquisitions of around 2.3 million tonnes have been confirmed. Commercial U.S. soybean imports, however, remained nil, given that China’s 25 percent retaliatory import tariff remained in place."]
[2019,"January","FRANCE – environmental policy:  The French National Assembly voted to end – on environmental grounds – tax incentives provided when palm oil-based biodiesel is added to regular transport diesel. Under the parliamentary decision, as of 2020, palm oil-based biodiesel would be treated as regular diesel rather than green fuel and would no longer count towards the EU’s targets for renewable energy in transport."]
[2019,"January","INDIA – food standards and safety:  New cases of coconut oil adulteration have been detected in the state of Kerala. After banning close to 100 brands between May and June 2018, in December, local food authorities banned the manufacture, storage, distribution and sale of another 74 brands."]
[2019,"January","INDIA – procurement operations:  The Private Procurement and Stockiest Scheme (PPSS) – launched recently by the Federal Government to enhance the procurement of oilseeds and other selected crops (see MPPU Oct.’18) – has not resulted in concrete actions, according to media reports. Meant to engage the private sector in procurement operations, the scheme was set to be tested via eight pilot projects in different states. However, the concerned states refrained from submitting pilots, citing lack of interest by private operators. Reportedly, the rule that the remuneration of private parties cannot exceed 15 percent of the relevant minimum support price (MSP) – while market prices for oilseeds are said to have dropped 20 percent below state-mandated prices – has made the scheme commercially unviable. Under the PPSS, private operators are expected to bear all handling, storage, distribution and sale costs."]
[2019,"January","INDONESIA – export policy:  The Government of Indonesia modified the parameters applying to the collection of levies on palm oil exports (see also MPPU Dec.’18). When the palm oil benchmark price falls in a range of USD 570–619 per tonne, the levy will amount to USD 10–25 per tonne, whereas USD 20–50 will be collected when the reference price exceeds USD 619. Previously, exporters paid USD 20-50 per tonne regardless of price levels. Since last November, when palm oil prices dropped below the USD 570 threshold, no export levies have been charged in a bid to maintain the competitiveness of the country’s palm oil exports. The trade ministry’s reference price for December stood at USD 549 per tonne. (NB: When the palm oil reference price exceeds USD 750, Indonesia also charges a tax on crude palm oil exports; the rules governing that tax have remained unchanged)."]
[2019,"January","INDONESIA – biodiesel policy:  According to media reports, after last year’s shift to 20 percent biodiesel blends in the country’s transport sector (see MPPU Aug.’18), the Government plans to further boost domestic biodiesel consumption, with the aim to enhance the uptake of crude palm oil amid fluctuations in the commodity’s global market price. In particular, the viability of raising the content of biodiesel in fuels to 30 and even 100 percent is being analysed. In the meantime, state-owned oil company Pertamina is said to consider setting up three new biodiesel refineries. "]
[2019,"January","INDONESIA – land governance:  The Indonesian Government published a unified, national map of land-use cover, in a bid to resolve claims related to overlapping concessions (for mining, plantation and forest conservation) that have given rise to social conflicts and environmental problems. The detailed map reconciles 85 thematic maps managed by 19 different government agencies. Reportedly, the inclusion of maps on customary forests, indigenous territories, mining concessions and oil palm plantations is still under consideration, while regulations governing data sharing and access are currently being drafted.                       "]
[2019,"January","MOROCCO – food safety:  According to media reports, the country’s Interior Ministry has intensified its efforts to combat sales of adulterated olive oil. Reportedly, sales of unregulated products containing blends of different vegetable oils as well as toxic substances have been detected in several parts of the country."]
[2019,"January","NORWAY – environmental policy:  The Norwegian Parliament requested the country’s Government to formulate a comprehensive proposal for measures to exclude from the market biofuels whose production entails high deforestation risk, effective 1 January 2020. With regard to palm oil, Parliamentarians have linked indirect land use effects arising from palm oil production to deforestation. Reportedly, in 2017, close to half of all biofuels consumed in the country were based on palm oil. The country’s current biofuel policy includes blending mandates for transport fuel (set at 20 percent in 2020) and a road tax exemption for biofuel supplied above mandated volumes. On a related subject, the Norwegian Government has announced that, from 2020, airlines operating in the country will be required to use fuel blends containing 0.5 percent of waste/residue-based biofuels.","    "]
[2019,"January","THE PHILIPPINES – import policy:  Following a sharp rise in the volume of palm oil imports from Malaysia and Indonesia – which is believed to have led to a decline in domestic prices of coconut and derived products – the Philippine Government has initiated anti-dumping investigations, local media reported. Currently, palm oil from Malaysia and Indonesia enters the Philippines duty-free, in line with the ASEAN Trade Goods Agreement. Reportedly, under WTO rules, the country may temporarily impose protective tariffs, invoking a claim of injury to its industry. "]
[2019,"January","RUSSIAN FEDERATION – import policy:  The Government of the Russian Federation expanded an existing ban on goods imported from Ukraine. Reportedly, the move has come in response to a recently prolonged Ukrainian embargo on Russian products. The goods targeted under the Russian Federation’s ban include sunflower oil.     "]
[2019,"January","TURKEY – import policy:  The Turkish Government has approved, for the period January–June 2019, a 300 thousand tonnes duty-free quota for sunflowerseed imports, which habitually attract a tax of USD 59 per tonne. Reportedly, the measure is aimed at supporting domestic crush operations."]
[2019,"January","UNITED STATES – agricultural policy:  In December, President Trump signed into law a USD 867 billion Farm Bill covering the five-year period 2019–2023. The bill will continue to fund key farm safety net schemes, while renewing the country’s domestic food aid programme without significant changes. The bill reauthorizes the existing crop insurance and conservation programmes and will fund a set of trade promotion measures as well as research on bioenergy production and organic farming. Farmers will have the option to choose between the Agricultural Risk Coverage and Price Loss Coverage programmes in four out of five years, to make sure the tools they are using are better aligned with their risk management needs. The bill also introduces a number of improvements to both programme prices and yields to enhance the effectiveness of these tools. Furthermore, the marketing loan rates of several crops have been increased to support farmers who need to access low-interest post-harvest financing. The loan rate for soybeans has been raised by 24 percent, while that for groundnuts and ‘minor oilseeds’ has been left unchanged. The current limits on individual farm subsidies have been maintained."]
[2019,"January","UNITED STATES – relief measure:  The U.S. Government has authorized a second round of payments from the USD 12 billion aid package designed to compensate farmers for losses incurred due to the Sino-US trade tensions (see MPPU Aug./Oct./Dec.’18). Including the additional disbursements, USDA expects direct payments to farmers to total USD 9.6 billion, of which around USD 7.3 billion will be for soybeans growers, who are entitled to receive USD 1.65 per bushel (USD 60.62 per tonne) on half of their actual 2018 production. In addition, USD 1.2 billion have been earmarked for food purchases and around USD 0.2 billion for measures to develop foreign markets. "]
[2019,"January","UNITED STATES – GMO labelling standard:  Ending a rule making process that began in 2016 and included a public comment period (see also MPPU Aug.’16, Oct.’17 & Aug.’18), USDA has released detailed regulations for labelling food products that include genetically modified material. The new national standard requires food manufacturers, importers and certain retailers to ensure that ‘bioengineered’ foods are appropriately disclosed via either text, symbol, electronic/digital link or text message. Products with up to 5 percent inadvertent or technically unavoidable presence of bioengineered substances for each ingredient are exempt. The term ‘may be bioengineered’ cannot be used. Importantly, the final rule does not require labelling of highly refined ingredients from GM crops (such as refined vegetable oils, high fructose maize syrup and refined beet or cane sugar), provided no modified genetic material is detectable. Notwithstanding, manufacturers are allowed to make voluntary disclosures on such products in the interest of transparency, labelling their products as ‘derived from bioengineering’ (NB: voluntary bioengineered disclosure is not permitted for foods derived from animals fed bioengineered feed). In this regard, food industry representatives had favoured more comprehensive labelling requirements, arguing that excluding refined ingredients could confuse consumers and erode trust in brands and the technology. On a separate point, consumer advocacy groups remarked that the final rule does not define ‘non-GMO’ and thus does not provide guidance on when a food can be voluntarily labelled as ‘non-GMO’. The implementation date of the new standard is 1 January 2020 (or 1 January 2021 for small food manufacturers). However, compliance will become mandatory only on 1 January 2022. Regulated entities may voluntarily comply before that date. Businesses with annual sales below USD 2.5 million will be exempt from the new labelling requirements.    "]
[2019,"January","Variable palm oil export tax – Malaysia:  In Malaysia, palm oil benchmark prices continued to range below the thresholds that trigger taxation. Accordingly, in January 2019, the export tax on crude palm oil remains at zero for the fifth consecutive month."]
[2019,"January","Variable palm oil export tax – Indonesia:  In Indonesia, palm oil benchmark prices continued to range below the thresholds that trigger taxation. Accordingly, in January 2019, the export tax on crude palm oil remains at zero for the twenty-second month in succession.     "]
[2019,"January","Preferential trade – CPTPP (Canada, Japan):  Based on the recent entry into force of the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) agreement, Canadian industry officials envisage new export opportunities for Canadian rapeseed oil and meal in Japan. Considering that, under CPTPP, Japan’s import tariffs on the named products will be eliminated over the next five years, the Canola Council of Canada intends to promote the replacement of rapeseed sales to Japan with exports of value-added oil and meal and expects new rapeseed crush facilities to be set up in Canada. Under the envisaged scenario, Canada would increasingly compete with Australia, which has enjoyed a free trade agreement with Japan since January 2015."]
[2019,"January","Preferential trade – INDIA (ASEAN, Malaysia):  In line with a free trade agreement signed with ASEAN in 2009, India has lowered its tariff on palm oil imports from ASEAN nations, effective 1 January 2019. For crude and refined palm oil, the rate has been reduced, respectively, from 44 percent to 40 percent and from 54 percent to 50 percent. Under a separate, bilateral treaty with Malaysia (Malaysia India Comprehensive Economic Cooperation Agreement), shipments of refined Malaysian palm oil will be taxed at a reduced rate of 45 percent, from 1 January 2019. As these reductions will narrow India’s duty difference between palm oil and competing vegetable oils (see MPPU Mar.’18), the country’s purchases of palm oil are expected to rise in the coming months, with Malaysian exporters of refined palm oil enjoying an additional advantage. In the meantime, Indian farmer and industry representatives have expressed concern that the import concessions will discourage domestic oilseed production, halt the expansion of palm plantations and hurt local oil refiners."]
[2019,"January","Oil palm sustainability – private sector initiatives (sustainable sourcing, company policies):  Asian agribusiness group Wilmar, which pledged to stop purchasing palm oil from suppliers found to be in violation of its sustainability policy, has adopted a new supplier monitoring and engagement programme, enlisting the support of an environmental advocacy group. Allegedly, the initiative will help the company monitor third-party plantations and allow for faster action against non-compliant suppliers. The initiative includes remediation measures for past deforestation or peatland developments. The company expects to finish mapping its supply chain by end 2019. Among key challenges faced, Wilmar listed the opaque ownership structures some companies have in place. Civil society campaigners have urged the company to make its suppliers’ concession maps publicly available."]
[2019,"January","Oil palm sustainability – private sector initiatives (sustainable sourcing, national initiative):  NASPON, the industry-led North American Sustainable Palm Oil Network launched in late 2017 (see MPPU Jan.’18), set up three new work-streams to further its ability to impact sustainable palm oil uptake in the region. New work will focus on the supply and uptake of derivatives of certified palm oil and palm kernel oil, segregated material supply chains, and the development of educational materials.    "]
[2019,"January","Oil palm sustainability – private sector initiatives (sustainable sourcing, bilateral cooperation):  The Dutch oils and fats industry association MVO and  Colombia’s national oil palm growers federation FEDEPALMA (with support from civil society group Solidaridad and the sustainable trade initiative IDH) joined forces to promote trade in sustainably produced palm oil between Colombia and the Netherlands. Besides being Europe’s largest palm oil importing country, the Netherlands are the destination for around 70 percent of Colombia’s palm oil shipments. (See also MPPU Jan.’18)"]
[2019,"January","Oil palm sustainability – private sector initiatives (RSPO, smallholder support):  Reportedly, a project jointly implemented by the Roundtable on Sustainable Palm Oil – the global, industry-led palm oil certification body – and the UN’s Environment Programme to promote improved livelihoods and sustainable production among oil palm smallholders in Indonesia and Malaysia has delivered the following results:  i) improved knowledge and capacity on good agricultural practices, sustainable agriculture and pricing/grading mechanism; ii) increased access to agricultural inputs; iii) improved access to low-interest loans; iv) higher awareness about the benefits of certification; and v) better knowledge of barriers limiting access to certification, notably legal issues concerning land ownership.                "]
[2019,"January","Soybean sustainability – industry-wide initiative, Brazil:  The Cerrado Working Group (GTC), which brings together representatives of Brazil’s soy industry, international trading firms and consumer good companies, and environmental NGOs, is exploring the viability of setting up a fund to reward farmers in the country’s ecologically rich Cerrado biome for preserving native vegetation on their soybean farms – hence protecting areas that could otherwise be legally deforested. Actually, Cerrado farmers are only required to preserve 20–35 percent of their farms’ native cover – much less than farmers in the neighbouring Amazon basin. The proposal under consideration envisages payments of about USD 150 per ha per year for preserving areas that qualify for deforestation, using land already converted to pasture land instead. Funding would be provided by stakeholders across the soy supply chain, including Brazil’s association of vegetable oil industries (ABIOVE), global trading firms, major foreign consumer brands and large retailers. The administration and monitoring of such scheme is expected to be costly and technically challenging. Reportedly, NGOs would assist in fund-raising activities and help all segments of the supply chain secure independent verification of deforestation/conservation levels. (See also MPPU Dec.’18)                "]
[2019,"January","Soybean sustainability – sustainable sourcing:  Supermarket chain Lidl-UK pledged to exclusively source soybeans from sustainable, deforestation-free sources in its supply chain. Reportedly, since September 2018, the retailer is backing its soybean purchases by ‘Book & Claim’ certificates issued by the Roundtable for Responsible Soy (RTRS). In a subsequent phase, the company intends to move towards physically traceable supply chains."]
[2019,"January","Biodiesel – private sector news, Ethiopia:  According to media reports, a first of 10 planned Ethiopian biodiesel plants is ready for commercial operation in the country’s Oromia region. Commissioned by public-private partnership African Power Initiative (API) after running a pilot refinery plant, the facility will source feedstock from farmers who are reforesting 1.4 million hectares of land with jatropha curcas, a drought-resistant shrub that produces inedible oil. "]
[2019,"January","Biodiesel – private sector news, India:  In the state of Haryana, construction of a biodiesel plant using primarily used cooking oil (UCO) as feedstock is nearing completion, local media reported. The company running the facility has been authorized to collect UCO in Delhi (National Capital Region), Haryana and Punjab. The plant has a nameplate capacity of 100 tonnes per day. Besides helping to reduce dependence on imported crude mineral oil, the recycling of UCOs is expected to help reduce their illegal discharge and prevent re-entry into the food chain. Over the past few years, India’s biodiesel market has been partly deregulated, rescinding price ceilings and allowing producers to sell their fuel directly to consumers (see MPPU July’15 & Oct.’18)."]
[2019,"January","Research & development – rapeseed meal-based bioplastic:  Reportedly, Canadian researchers developed innovative technologies to produce biodegradable plastics from protein extracted from rapeseed meal. Support from investors is currently being sought for the technology’s commercial-scale application. (See also MPPU Apr./May’15, Aug.’18 & Dec.’18) "]
[2019,"January","Research & development – soybean oil-based sealant:  US researchers have developed a soybean oil-based hydrophobic sealant that can be used to protect new and existing concrete to improve roads. Reportedly, a variety of other applications is currently being tested.      "]
[2019,"January","Research & development – plant oil-based polyester:  In Germany, researchers developed a technology to obtain polyester from fats and oils, more specifically castor oil, by functionalizing polymerization.      "]
[2019,"January","Transport infrastructure – Brazil: Confronted with poor road infrastructure and, more recently, government-set minimum truck freight rates, Mato Grosso’s soy farmers have reiterated their interest in co-funding the construction of ‘Ferrogrão’, a 933-kilometer railroad project that would connect the region’s striving grain areas with transhipment ports in the Amazon basin (see also MPPU July’17 & Jan./Oct.’18). According to Mato Grosso’s soybean growers association, out of an estimated total construction cost of BRL 12.7 billion (USD 3.4 billion), producers could raise BRL 2.5 billion (USD 0.66 billion). Official sources estimate that the railway would move 13 million tonnes of cargo in its first year of operation, and 45 million tonnes by 2050. Currently, more than 70 percent of Mato Grosso’s grains harvest leaves the state via its southbound roads to reach ports in more than 2 000 km distance. Industry experts expect the planned rail-link to reduce grain freight costs by BRL 50 per tonne (USD 13) on average."]

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[null,2008]
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[2008,"December","Argentina - export taxation:  In Argentina, export taxes on wheat and maize have been lowered by, respectively, 18 and 20 percent. By contrast, the duties for oilseeds and their products remained unchanged. From 4 December, the following base export duties apply to grains (in percent, ad valorem): wheat 23, maize 20, soybeans 35, sunflowerseed 32. "]
[2008,"December","India - oil import duties:  Reportedly, India has decided not to re-introduce duties on the importation of crude edible oils (notably palm oil) for the time being - in spite of the recent price falls in the international and domestic oilseed and oil markets. When prices started to surge in 2007, hitting domestic consumers, import duties were lowered and then suspended altogether. Reportedly, import duties will only be re-imposed if domestic oilseed prices drop below the currently applied official minimum support prices for farmers. The only exception is crude soy oil, for which a 20 percent import duty has been reinstated in November.  "]
[2008,"December","Paraguay - land use policy:  Reportedly, in an effort to calm current protests against foreigners owing large tracts of land - in particular of soybean farms - the government is considering to enforce a long-standing law that does not allow foreigners to buy agricultural land from citizens."]
[2008,"December","Ukraine - domestic price regulation: With a view to counter the marked fall in domestic prices of sunflowerseed, according to unofficial sources, the government has taken steps to add sunlflowerseed to the list of products whose prices are regulated by the state. Such measure will be limited to the 2008/09 marketing season. The official price band has yet to be announced."]
[2008,"December","Ukraine - export policy:  Reportedly, in response to falling international prices and deteriorating export prospects, export duties on sunflowerseed could be suspended during the current marketing season. At the same time, the introduction of export quotas might be required to ensure adequate coverage of domestic consumption needs. Export quotas could amount to 1.2 to 2 million tons and might be allocated primarily to traders that purchase sunflowerseed at the official minimum price."]
[2008,"December","EU - common agricultural policy:  The recently completed review of the European Union’s agrarian policies (“Health Check”) carries no major, direct implications for oilseed crops. The only relevant measure is the abolishment (in 2010) of the energy crop premium of € 45/ha, which applies to rapeseed grown for biodiesel production. Other changes applying to arable crops in general include: the permanent abolition of compulsory land set aside (from 2009); the full decoupling (in 2010) of production payments; rules regarding minimum and maximum payments to individual farmers; the diversion of some direct farmer payments to rural development projects; the simplification and update of cross compliance requirements concerning cultivation practices and related environmental aspects."]
[2008,"December","EU - GMO approval:  Approval for the importation, marketing and use in food and animal feed across the 27 nation market has been granted for a GMO soybean known as second generation Roundup Ready Soybean. The new variety started to be grown in North America and the approval by the EU - an important buyer of USA grown soybeans - was eagerly awaited by the industry on both sides of the Atlantic. The permission is valid for 10 years and the bean (and any product derived from it) will be subject to the EU’s strict labelling and traceability requirements. The next GM product in line for potential approval is a new variety of rapeseed that has been developed and is already cultivated in Canada."]
[2008,"December","Malaysia/Indonesia - supply control measures:  Reportedly, the two countries agreed to take coordinated action to address the current slide in palm oil prices and the slow down in demand for palm oil anticipated for next year as a result of global economic recession. The key means to temporarily slow down production growth will be to intensify replanting of old trees. A total of 300 000 ha is being earmarked for this purpose. Farmers that participate in the replanting programme will be given access to high quality planting material at subsidized prices."]
[2008,"December","Myanmar - oilcrop promotion:  In an effort to reduce the country’s dependence on imports to meet domestic demand of edible oil, the country has embarked on a programme to encourage the cultivation of oilcrops. Crops promoted include groundnut, sunflowerseed and sesame. Improvements in transport infrastructure to facilitate marketing are also envisaged. Furthermore, foreign private companies could be allowed to participate in setting up an oil palm industry. The government programme is receiving support from OPEC as well as technical assistance from FAO."]
[2008,"December","Germany - biofuel policies:  Reportedly, national mandatory targets for future biofuel admixture in transportation fuels are being adjusted downward. Furthermore, from 2015, the calculation basis will be switched from the energy content of biofuels to the greenhouse gas emission savings resulting from their use. Of particular concern to the oilcrop sector is a provision that prevents the use of palm oil and soybean oil under the mandatory schemes and preferential taxation system until criteria for the sustainable production of biofuel feedstock are in place."]
[2008,"December","China - state procurement:  After prices for domestically grown grains and oilseeds have declined as a result of record crops and weak demand the government decided to buy soyabeans, rapeseed and other arable crops for state reserves in an effort to support prices, protect farmers’ incomes and stabilize plantings in 2009. Imported soSoybeans State soybean reserves were not maintained before. Reportedly, 1.5 million tons have been bought and funding has been made available for another 2.5 million tons - compared to a total domestic crop of about 16 million tons. Domestic soybean farmers find it increasignly diffuclt to compete with imported soybeans."]
[2008,"December","Thailand - palm oil support:  After raising last month the reference price at which farmers sell palm fruit to crushers, the government plans to purchase palm oil from oil mills at a guaranteed price, hoping to prevent prices from falling further. The recent decline in mineral oil prices has made the use of palm as biodiesel feedstock uneconomic, leading to an excess of supply over demand."]
[2008,"December","Sustainable palm oil:  A first shipment of certified and traceable palm oil - produced in Malaysia in accordance with RSPO’s sustainability criteria - has been delivered to the EU. But environmental and social groups continue to question the value of the certification pointing at environmentally and socially unsustainable production methods in the countries of origin."]
[2009,"January","Argentina - grains export taxation:  In Argentina, export taxes on wheat and maize have been lowered by, respectively, 18 and 20 percent. By contrast, the duties for oilseeds and their products remain unchanged - despite the recent sharp drop in global oilseed prices. From 4 December, the following base export duties apply to grains (in percent, ad valorem): wheat 23, maize 20, soybeans 35, sunflowerseed 32."]
[2009,"January","EU - biofuel policies: The EU decided to retain its binding target to have 10 percent of its vehicle fuels sourced with renewable fuels by 2020. To encourage the use of non-food feedstock, second generation biofuels will count double against the target, while feedstock grown in high biodiversity and carbon stock areas will not be admitted. Specific sub-targets according to the type of feedstock used and the form of transport have not been set. By 2017, in order to be counted against the target, biofuels need to achieve at least 50 percent reduction in GHG emission over conventional fuel. For the time being, the carbon footprint of related indirect land use changes will not be taken into account. A further review of these policies is envisaged for 2014."]
[2009,"January","Thailand - soymeal import tariff: For 2009, the tariff for soymeal (imported from WTO members) has been reduced from 4 to 2 percent. The regulation requiring eligible importers to also purchase domestic soya meal at minimum prices set by the government remains in place."]
[2009,"January","USA - biodiesel feedstock: Towards the end of 2008, the use of animal fat as feedstock for biodiesel production has dropped sharply in response to the introduction of stricter biodiesel standards and as prices for vegetable oils abandoned their record level."]
[2009,"January","Certification of ‘sustainable palm oil’: Recently, the first two oil palm plantation companies (both in Malaysia) have been ranked as certified producers of sustainable palm oil based on the criteria developed by the global multi-stakeholder initiative RSPO. Several more companies are expected to gain that status during 2009. A first shipment of certified and traceable palm oil has been delivered to the EU last November."]
[2009,"January","Soybean modification providing benefit to consumer: A high-oleic soybean variety developed in the USA is ready for phased introduction in 2009. Compared to conventional soybeans, the new variety features a high oleic acid content, a lower rate of linolenic acid and a reduced percentage of saturated fatty acids. These traits make the oil more stable and versatile in a variety of food applications without the need for hydrogenation, thus allowing to avoid the presence of unhealthy trans fatty acids in food products.      "]
[2009,"January"," EU - import approval for new GM soybean:  Approval for the importation, marketing and use in food and animal feed has been granted for the new high yielding variety known as “Roundup Ready2Yield”. The variety is expected to be extensively grown in the USA, an important supplier of soybeans to the EU. The permission is valid for 10 years and the bean (and any product derived from it) will be subject to the EU’s strict labelling and traceability requirements. The next GM product in line for potential approval is a new variety of rapeseed that was developed and is ready for cultivation in Canada."]
[2009,"January"," Ukraine - domestic price regulation: With a view to counter the marked fall in domestic prices of sunflowerseed, the government added sunlflowerseed to the list of products whose prices are regulated by the state. Such measure will be limited to the 2008/09 marketing season. The official price band has yet to be announced."]
[2009,"January","China - state procurement:  After prices for domestically grown grains and oilseeds have declined as a result of record crops and weak demand the government decided to buy soyabeans, rapeseed and other arable crops for state reserves in an effort to support prices, protect farmers’ incomes and stabilize plantings in 2009. State soybean reserves were not maintained before. Reportedly, 1.5 million tons have been bought and funding has been made available for another 2.5 million tons (compared to a total domestic crop of about 16 million tons)."]
[2009,"February","Mexico - oil import duties: Between January and February 2009, the tariffs on crude and refined vegetable oils will be phased out. The country depends heavily on imports of vegetable oil and consumers are reported to have been strongly affected by last year’s surge in prices."]
[2009,"February","Mexico - income support: In January 2009, the target prices for soybean and rapeseed that are used to determine supplementary income payments to farmers have been adjusted upward by 30-40 percent."]
[2009,"February","Germany - biodiesel taxation: In line with the overall policy to gradually scale back support provided to the biodiesel industry, from January 2009 onward, taxation of vegetable oils used as biodiesel feedstock will increase from 0.10 to 0.18 € per litre, while the tax for B-100 is lifted from 0.15 to 0.18 € per litre."]
[2009,"February","Ukraine - export policies: The plan to suspend the export duty for sunflowerseed until 1st September 2009 (with a view to stimulate trade) has been dropped so as not to hurt the domestic crushing industry. For 2009, the duty has been set at 13% as opposed to 14% before."]
[2009,"February","China - state procurement: Further to last autumn’s purchases (see also issue No.1), the government plans to buy an additional three million tons of soybeans for state reserves. This could raise the total volume of soybean reserves to up to 6 million tons.  However, last year’s actual purchases of soybeans for state reserves have been reported at levels below the original targets.   "]
[2009,"February","Brazil - ‘sustainable soybean farming’: A global grain trading and processing company entered into partnership with a local NGO to promote sustainable soybean farming in the country. The initiative aims at reducing the environmental impact of soybean farming and minimizing expansion into environmentally sensitive areas."]
[2009,"February","Argentina - support to farmers: In early January, the government announced plans to provide subsidies on fertilizer and loans for purchasing farm machinery. However, export taxes on oilseeds would not be lowered. Later in the month, the government declared agricultural emergency in the country’s main food producing provinces due to widespread drought – reportedly the worst since 1971. Affected farmers will be allowed to defer various taxes and debt repayments. Unofficial estimates for this season’s soy-crop currently range between 39 and 43 million tons, compared to early-season forecasts around 50 million and last season’s output of 46.2 million.    "]
[2009,"February","Japan - carbon footprint labelling: The government has launched a pilot project on voluntary carbon footprint labelling of consumer products, including foods. Products shall be rated based on the level of CO2 emitted during their life cycle."]
[2009,"February","Malaysia - palm oil barter trade: For the period 2009-10, USD 70 million worth of palm oil have been earmarked for bartering for fertilizer with the Russian Federation and the Democratic People’s Republic of Korea."]
[2009,"February","USA - growing market for soybeans with special traits: Production and trade of soybeans with special traits – notably low-linolenic, food-grade and identity-preserved non-GMO varieties – is growing in importance in the USA. Reportedly, as much as 1.6 million tons of food-grade soybeans are exported annually. An average price premium of 125 USD per ton was reported for non-GMO soybeans."]
[2009,"February","Indonesia - biodiesel support: Reportedly, the government is considering to subsidize the sale of palm oil-based diesel when low fossil fuel prices compromise the profitability of biodiesel production."]
[2009,"February","EU - butter market support: In response to the sharp drop in dairy prices, the Commission has reintroduced export refunds for butter. Furthermore, the period during which aid for private storage of butter is granted has been expanded and state intervention buying of butter may be allowed to exceed pre-determined levels."]
[2009,"March","Indonesia - oil palm plantations: Reportedly, the government is considering to lift temporary restrictions (in place since late 2007) on the use of peatland forests for oil palm plantations. The measure would allow to increase productivity in the oil palm sector. The restrictions had been introduced to control carbon dioxide emissions associated with the use of peatland."]
[2009,"March","Brazil - conventional soybeans: Reversing the trend of recent years, in the state of Parana, farmers’ demand for conventional soybean varieties has grown this season at the expense of GM seed material. Increased interest for conventional varieties is explained by the lower cultivation cost associated with those seeds."]
[2009,"March","China - state reserves of vegetable oil: After the recent release of reserves to prevent supply shortages and thus price increases, private sources reported that public stocks are being replenished via the importation of oils from South America.          "]
[2009,"March","Canada - trans fat: The government reported progress towards the reduction of trans fats in food products without increasing the levels of saturated fats. The country had made the requirement to indicate trans fat content in pre-packaged food mandatory and, in 2006, the industry agreed to voluntary limits in the trans fat content of food products."]
[2009,"March","Malaysia - biodiesel: Government sources confirmed that blending of diesel fuel with five percent palm oil biofuel will become mandatory on January 2010. This year, all government vehicles will start using the blend. To remain competitive, biodiesel sales shall benefit from a subsidy. Once fully operational the programme is"]
[2009,"March","expected to absorb 500 000 tons of palm oil annually."]
[2009,"March","India - state imports of vegetable oil: Following the drop in global and domestic prices for vegetable oils, the importation of oils by state trading agencies for subsequent distribution to poor households has been suspended."]
[2009,"March","EU - temporary biodiesel duty: From mid March, imports of biodiesel from the USA will face temporary anti-dumping and anti-subsidy duties. Tariffs ranging from 26 to 41 € per 100 kg are expected to apply for an initial period of six months. Surging imports of biodiesel produced in the USA - and benefiting from government support there - are considered to have severely injured the competing EU biodiesel industry.    "]
[2009,"March","India - trans fat: A recent study confirms that, on average, trans fat levels in vanaspati and other products based on partially hydrogenated oils exceed generally recommended levels. Among refined vegetable oils sold on the market this problem was not detected. Last year, India has joined the list of countries where the trans fat content must be declared on labels. Discussions about revised product standards and the feasibility of introducing binding maximum levels for trans fat are underway."]
[2009,"March","Germany - biofuel legislation: The EU Commission has requested that the sustainability criteria included in a national law on the promotion of biofuels be streamlined with the relevant EU directive. As a result, importation of vegetable oils - especially soy and palm oil - for local biodiesel production is expected to resume. Furthermore, new legislation excluding biofuels that have previously received state aids from being eligible for national incentives and mandates will go ahead. Consequently, the importation of biodiesel that has benefited from state aid could become uneconomical."]
[2009,"March","Indonesia - biodiesel support: The government confirmed its plan to subsidize the sale of biofuels by state owned companies depending on how the prices for fossil fuel and biofuel feedstock (notably palm oil) develop. The subsidy would amount to Rp 1000 per litre of biofuel distributed. Under the currently envisaged level of government funding, the sale of up to 750 000 tons of biofuel could be supported in 2009 - an amount close to the country’s mandatory consumption of biofuels in 2009. Palm oil based biodiesel should account for about three quarters of all biofuel sales.         "]
[2009,"March","France - biodiesel taxation: Similar to Germany, where taxes on biodiesel and biodiesel feedstock have been raised in January, France has announced that all tax advantages granted to biofuel will be discontinued by 2012."]
[2009,"March","Indonesia - palm oil exchange: To date the world’s leading producer of palm oil lacks an own exchange and futures market for palm oil; local traders and policy makers are used to follow contracts traded in Malaysia or the EU to determine prices. Now private sources report that physical trading in CPO through a local exchange is going to start later this year. State plantations seem committed to sell at least 20% of their output through the new platform."]
[2009,"March","United Kingdom and Germany - biofuel targets: The rates of mandatory inclusion of biofuels in transportation fuel are being corrected downward in both countries: in the UK, the rate for 2009/10 is expected to be set at 3.25% (down from originally 3.75%), rising gradually to 5% by 2013/14. In Germany, the rate for 2009 is being reduced from initially 6.25% to 5.25%, and shall be frozen at 6.25% from 2010.       "]
[2009,"March","USA - special traits soybeans: According to industry sources, the importance of special trait varieties – developed to reduce trans fat and saturated fat content in the human diet – is growing steadily. The swift replacement of traditional soybean varieties with new ones (i.e. low linolenic, high oleic and mid olein/low saturate lines that deliver direct health benefits) is said to have shielded domestic markets from possible disruptions or contractions in consumption."]
[2009,"March","EU - olive oil labelling: In July 2009, origin labelling will become mandatory for extra virgin olive oil sold in the Community. The country of origin, or, in the case of blends, the type of blending will have to be displayed. The measure aims at improving guarantees of quality to consumers.    "]
[2009,"March","Argentina - trade control: Reportedly, the government has met with farmer groups and grains exchanges to discuss about the possibility of setting up a national board that directly regulates and controls foreign trade in grains and oilseeds. A state agency charged with the same task, the National Grains Board, was dismantled in the early 1990s."]
[2009,"March","USA - farm support rules: Motivated primarily by budgetary considerations, President Obama has called for cuts in farm subsidies over the next decade. Proposals are reported to include the gradual exclusion of large farms from direct payments, reductions in the individual payment caps under the commodity programmes and reduced subsidies for crop insurance. Actual spending for agriculture is determined by the Congress."]
[2009,"April","India - soyoil import tariff: The 20% import duty on crude soyoil introduced last November has been removed again. Soyoil will thus enjoy the same treatment as other crude vegetable oils which are imported duty free since April 2008. By doing away with the duty the price premium for soy oil will be restored to normal levels."]
[2009,"April","EU - butter market intervention: After reaching the ceiling of 30 000 tons for automatic intervention buying at fixed prices in early March, the Commission went on purchasing additional butter into intervention at a price slightly below the official intervention price. The purpose of these purchases is to contain oversupply at a period of low market prices."]
[2009,"April","EU - GM rapeseed importation: The Commission has approved the importation and processing (but not cultivation) of a GM rapeseed variety for food, feed and other uses for a period of 10 years. The new variety T45 is characterized by tolerance to a particular herbicide and is grown primarily in Canada, whose exports towards the EU are expected to resume thanks to the approval."]
[2009,"April","USA - demand for sustainable palm kernel oil: An oleo-chemicals company started to purchase sustainable palm kernel oil certification credits. It is the first step in creating a segregated supply chain for sustainably produced palm kernel oil. By doing so palm kernel oil producers that use more environmentally responsible practices to produce and harvest palm kernel oil are going to be paid a premium.         "]
[2009,"April"," Argentina - negotiation progress: Negotiations between the government and farmers regarding economic difficulties that afflict the sector resulted in agreements eliminating export taxes on dairy products, increasing the export quota for beef and guaranteeing a higher price for wheat sold domestically. The tax levied on soybean exports remains unchanged. Plans to set up a grain regulating agency have been postponed."]
[2009,"April","Pakistan - Indonesia trade agreement: Under preferential trade negotiations, Pakistan has agreed to reduce duties on palm oil imports from Indonesia by 10 percent, which would put duties at par with those applied to imports from Malaysia."]
[2009,"April","Canada - trans fat limits at province level: From October 2009, foods served in restaurants will be subject to specific limits for trans fat content in British Columbia. Since 2006, the industry was following voluntary limits at the federal level."]
[2009,"April","Malaysia - palm oil market measures: Government efforts to prevent oversupply on the domestic market continue. Under the 200 000 ha oil palm replanting scheme, by March 63 000 ha were approved, implying a temporary reduction in palm oil output by approx. 220 000 tons. Mandatory use of palm oil based B5-diesel in the entire transportation and industry sector is set to start next January, entailing a market offtake of approximately 500 000 tons of  palm oil. And the increase in the country’s duty free export quota for crude palm oil to 3 million tons in 2009 is expected to stimulate exports."]
[2009,"May","Brazil - mandatory biodiesel use: From January 2008, all diesel sales had to include 2 percent of biodiesel, which created a market for about 800 thousand tons of biodiesel. Biodiesel production capacity is reported to have climbed to 2.6 million tons last year. In order to better use this capacity, the mandatory admixture was raised to 3 percent in July 2008, and currently a further increase to 4 percent is under consideration. The obligatory 5 percent blend envisaged for 2013 has been anticipated to 2010. The main feedstock used for biodiesel production is soybean oil; its share in total feedstock use was close to 80 percent in 2008."]
[2009,"May","Argentina - herbicide investigation: The government was reported to have set up an inter-ministerial committee to investigate the environment and health impact of glyphosate, the active ingredient in an approved herbicide that is widely used in soybean cultivation (in Argentina as well as in other leading soybean producers)."]
[2009,"May","USA - soybean rust resistance: Reportedly, US scientist have identified asian rust resistance genes in soybeans, thus opening the way to the development of resistant cultivars via conventional breeding or biotechnological means. Asian rust represents a major threat to soybean cultivation in many countries. Although fungicide use is effective against the disease, the provision of farmers with resistant varieties would be more sustainable."]
[2009,"May","China - improved rapeseed varieties: Scientist are reported to have developed - via conventional breeding techniques - new rapeseed varieties featuring an oil content of 55-60 percent, which is 15 percent more than in the varieties currently used in the country. Among domestically grown oilcrops, rapeseed is the leading source of vegetable oil in the country."]
[2009,"May","Argentina - incentive for using domestic soybeans: With a view to privilege the use of domestically grown soybeans, the government has removed the export tax exemption applied to soyoil produced from imported soybeans. Furthermore, the tax break on soybean imports introduced in 2006 has been discontinued, making imports unprofitable. According to unofficial sources, farmers are currently stockpiling substantial amounts of old crop soybeans and the above trade measure also aims at stimulating farmers to release their stocks."]
[2009,"May","USA and EU - biodiesel footprint: In the USA, soybean-based biodiesel has been officially estimated to reduce GHG emissions by 22 percent over conventional diesel. This compares to a minimum 50 percent requirement for biodiesel to qualify towards the annual consumption targets. Other feedstock with lower footprint, for example animal fats or waste grease, might be required to meet the mandatory biodiesel target set for 2012. In the EU, the default values for GHG emission savings have been set at 31 percent for soy-diesel, 38 percent for rapeseed-diesel and 19 percent for palm oil-diesel, which compares to a minimum savings requirement of 35 percent (from 2013 onward). Biodiesel producers may claim greater GHG emission savings, but the onus of proof will be entirely on them."]
[2009,"May","Germany, Spain – biodiesel capacity: This year, private sources estimate the biodiesel industries of Germany and Spain to run, respectively, at no more than 60 and 10 percent capacity. The low utilization rate is related to reduced public incentives, limited mandatory blending rates and the drop in crude oil prices that has eroded the price attraction of biofuels."]
[2009,"May","China - state soybean reserve: Reportedly, in addition to the 6 million tons of state purchases scheduled since October 2008, state agencies are planning to buy another 1.25 million tons of soybean for temporary reserve. For comparison, total domestic soy output in 2008/09 is estimated at 15.5 mill tons. State purchases are carried out at prices above prevailing market prices and are meant to stabilize domestic oilseed production and prevent further declines in prices as farmers are preparing for the new planting season. The federal government is reported to also plan stockpiling between 3 and 4 mill tons of the 2009 rapeseed output.     "]
[2009,"May","Indonesia - palm oil export tax: The government has kept the indicative world price at which the export tax on palm oil will be re-introduced at 700 US$ per ton. Accordingly, this month the exports of palm oil will remain tax-free. (The NW Europe import price for palm oil has risen markedly last month, but stopped short of Indonesia’s trigger price.)"]
[2009,"May","Egypt – subsidized distribution of oil: Reportedly, over the last seven months, the amount of subsidized oil available to consumers through ration cards has been raised from 350 000 tons to 900 000 tons per year."]
[2009,"June","USA, Canada - new oilseeds varieties: GM varieties containing less saturated fats and thus offering a better health profile are gaining ground in North America. In the USA, commercialization of a new high oleic soybean variety is expected later this year. In Canada, high oleic (or low linoleic) varieties are estimated to account for 10-15 percent of the country’s rapeseed area.  As herbicide resistant and higher yielding strains become available, farmers are increasingly interested in growing these specialty crops."]
[2009,"June","Sri Lanka – palm oil import duty: To assist the domestic coconut industry, the government is considering to raise the special import duty on palm and palmkernel oil above the current level of Rs 60 per 1kg."]
[2009,"June","Indonesia – taxation of palm oil exports: Considering the recent, steady rise in international palm oil prices, the export tax on palm oil (which, inter alia, aims at protecting domestic supplies of vegetable oil) is likely to be reintroduced in June. The tax had been suspended late last year, when a decline in international prices started weighing on the country’s palm oil exports."]
[2009,"June","Indonesia – palm oil export price: Reportedly, the government is studying a mechanism for setting a national standard price for palm oil exports - so as not to depend on prices determined in the major European import markets."]
[2009,"June","EU – subsidization of private olive oil storage: The significant and prolonged decrease in community olive oil prices is expected to trigger the reintroduction of private storage aid, which aims at sustaining the income of olive oil farmers. Support shall be limited to 110 000 tons of olive oil in total."]
[2009,"June","EU – biodiesel duty: The Commission has proposed to extend the countervailing duty on biodiesel imports from the USA (provisionally introduced last March) for five years. The method of calculating the duty could undergo slight modifications."]
[2009,"June","New Zealand – biodiesel subsidy: To encourage investment into national biodiesel production, from July and for a period of three years, a subsidy will be granted on sales of domestically produced biodiesel that complies with sustainability standards set by the government. B5 blends are widely accepted in the country, but mandatory consumption targets have been withdrawn last December. All imported material needs to meet the same standards.      "]
[2009,"June","Canada – approval of high oleic GM soybean: Low in trans fatty acids and not requiring hydrogenation, the oil from the new variety offers improved nutritional qualities. The bean has been cleared for cultivation, food and feed use in the country."]
[2009,"June","Russian Federation – import tax on selected vegetable oils: An import tax of 10% is expected to be introduced soon for palm oil and coconut oil for a period of nine months. The intention is to temporarily shield domestic dairy products from the competition of lower priced substitutes."]
[2009,"June","USA – renewable fuel standard: An expanded renewable fuel standard (RFS-2) issued in draft form by the EPA has attracted criticism from the industry. In assessing the life cycle GHG impact of biofuels, the standard considers direct and indirect emissions, including those related to indirect land use changes. The justification and methodology for attributing emissions from land conversion to soybean-based diesel as well as the practicability of the required feedstock certification are being questioned. Achieving the country’s biomass-based diesel targets under the proposed RFS-2 would be challenging if soybean-based diesel was excluded.             "]
[2009,"June","Sales of certified sustainable palm oil: Palm oil that has been produced meeting environmental and social safeguards is available on the market since November 2008. However, sales of certified palm oil seem to be slow in taking off. According to tentative figures compiled by the WWF, so far, only about 1 percent of the sustainable palm oil available on the market has been bought."]
[2009,"June","Sequencing of oil palm genome: According to official sources in Malaysia, researchers have finally managed to fully sequence the oil palm genome. Eventually, this breakthrough will allow enhancing the productivity and sustainability of oil palm, a plant where yield levels have not significantly improved over the last decades."]
[2009,"June","China – soybean state reserves: The government is planning to procure an additional 1 million tons of soybeans from Heilongjiang province for temporary storage, in a bid to stabilize the domestic market and protect farmers’ interests. Reportedly, since mid 2008, government purchases have accumulated to a total of 7.25 million tons.                "]
[2009,"June","EU – biofuel target: An official report states that the EU is unlikely to reach the indicative 2010 target of 5.75% of transport fuel coming from renewable energy sources. A community-wide share of 4% is expected instead. The respective share in the year 2005 was 1%. Biodiesel accounts for roughly three quarters of renewable fuel use; bioethanol contributes 15%. The EU-Commission estimates that, by 2020, some 20-30 % of the utilization target is going to be met by second generation biofuels."]
[2009,"July","Indonesia - palm oil export tax: Suspended since December of last year, in June the export tax was re-introduced at a level of 3 percent, in line with the government’s policy to levy taxes when the world price exceeds a given level. While palm oil shipments are likely to decrease, the value of exports is anticipated to remain stable as are domestic cooking oil prices.  "]
[2009,"July","United States - export incentives: After remaining unutilized for five years, subsidies for butterfat exports will be reactivated for 2008/09 under the Dairy Export Incentive Program (DEIP). The payments are meant to help exporters meet prevailing world prices and to remain competitive vis-à-vis subsidized products from other countries. Allegedly, U.S. producers have seen their international market shares erode, in part due to the recent reintroduction of export subsidies by the European Union."]
[2009,"July","Round Table for Responsible Soy (RTRS): Following in the footsteps of the Roundtable for Sustainable Palm Oil (RSPO), the international multi-stakeholder initiative on soy has approved principles and criteria for responsible soybean production, thereby establishing the basis for the formulation of global standards on environmentally sustainable and socially responsible soy production, trade and processing. The next steps will be field-testing the criteria and, eventually, developing proper certification standards to be used by traders.  "]
[2009,"July","Certified palm oil: Neste Oil, a Finnish biodiesel producer, committed to shift to certified palm oil as sole feedstock (i.e. palm oil produced according to RSPO’s criteria for environmentally and socially sustainable production). The company, which introduced a system of full traceability of the palm oil it uses, expects to use 50 000 tons of certified palm oil in 2009 and considerably higher amounts in the coming years. Similarly, snack food producer Mars committed to use exclusively RSPO certified palm oil originating from sustainable sources by 2015. On the other hand, to date global sales of certified palm oil seem to have been minimal. Apparently, buyers are concerned about costs and uncertainty of supply. Reportedly, certification can add a premium of US$ 50 a tonne to palm oil in the wholesale market.   "]
[2009,"July","Brazil - agricultural support 2009/10:  The recently announced package of support measures addresses the increasing economic difficulties faced by the sector. In particular, the programme raises the supply of credit at controlled interest rates and lifts the financing limits per beneficiary. Interest rates will remain unchanged, and the volume of subsidized production loans will increase by 21 percent over last season. Furthermore, agricultural insurance programmes will be enhanced, cooperatives will be strengthened and guaranteed minimum prices will increase - especially for soybeans (plus 10%). Overall, special emphasis seems to be given to commercial and export oriented agriculture (as opposed to family agriculture). Private sources expect the package to contribute to a recovery in production in the coming crop season. "]
[2009,"July","China - support to crushers: Reportedly, to support farm sales of rapeseed at officially set prices, the government plans to offer subsidies to crushers (Yuan 200 per ton crushed). This measure would help farmers to sell their rapeseed crop, which is expected to hit a new record this year. Similar measures seem to be under consideration for soybeans, with a view to stimulate domestic soybean production and to stem the on-going surge in soybean importation."]
[2009,"July","Germany - biofuel target: Despite opposition expressed by the German parliament’s upper house, government plans to cut the 2009 biofuel blending target - from the current level of 6.25% to 5.25% - and to further raise taxes levied on biofuels have finally been confirmed. The higher blending ratio will be introduced only in 2010 and then remain at that level in subsequent years.  "]
[2009,"July","Biofuel blends as jet fuel: A major commercial carrier in the USA reported successful completion of a demonstration flight using a biofuel blend comprising jatropha oil. Reportedly, the blend performed as well as traditional jet fuel. Among the key results were a higher fuel efficiency of the blend and substantially lower greenhouse gas emissions (over the entire life cycle) compared to conventional fuel. No modifications were required to the aircraft or its engines. The airline hopes to see those fuels produced in commercial quantities in the near future."]
[2009,"July","China - soybean export duty: According to a local news agency the current 3 percent duty levied on exports of soybean (as well as other grains and industrial products) will be abolished from July with a view to promote exports.  "]
[2009,"July","Brazil - GM soybean submission: Monsanto’s submission of insect-protected Roundup Ready2Yield soybean for regulatory approval has been completed in Brazil. The US developed variety is heavily targeted at foreign markets and its approval in producing and importing countries will be key."]
[2009,"July","Canada - GM soybean approved: A variety high in oleic acid, and thus with improved nutritional qualities, has been approved for cultivation, food use and as a feed in Canada. Due to its specific fatty acid profile the oil does not require hydrogenation, resulting in food free of trans fats. Developed in Canada, the new variety is being submitted for regulatory approval in major soybean producing/importing countries including the USA."]
[2009,"July","Ukraine - biofuel incentives: Through a new law granting significant tax benefits to biofuel producers the government aims at stimulating domestic production and consumption of biofuels, notably rapeseed-based biodiesel. To date, only non-mandatory targets were in place, biofuel production has been negligible, and rapeseed has been primarily exported to the EU as feedstock for biodiesel. Once effectively implemented, the new law could make domestic biodiesel production (for local use and export) more attractive, potentially limiting rapeseed shipments and stimulating exportation of finished biodiesel, in particular to the EU"]
[2009,"September","EU: biodiesel import duty. EU member states have agreed to extend the   countervailing duty on biodiesel imported from the USA, which was introduced in March 2009, for the next five years. The measure aims at shielding biodiesel production in the Community from unfair competition by US exporters. The range of the permanent duties has been narrowed compared to the one in place so far. Reportedly, WTO anti-dumping guidelines have been adhered to, thus reducing the likelihood of a legal dispute between the two blocks."]
[2009,"September","Market support for butter: In an effort to help their dairy sectors coping with the prolonged and general depression in prices, the EU and the USA are prepared to extend their recently re-introduced domestic support measures, comprising aid to private storage, public intervention buying and the granting of export refunds."]
[2009,"September","USA: GM soybean. Official sources reported that in US agriculture the rate of adoption of GM soybean varieties has reached an estimated 91 percent (compared to 54 percent in 2000 and 7 percent in 1996). Soybeans represent the most widely and rapidly adopted GM crop; all modification concerns herbicide tolerance. The marked expansion has taken place in spite of uncertainty about consumer acceptance and economic and environmental impacts of GM products."]
[2009,"September","India: biodiesel import duty. The government is planning to reduce the basic customs duty on biodiesel from 7.5 to 2.5 percent. Due to several factors the country is facing difficulties in meeting its biofuel consumption targets from domestic sources."]
[2009,"September","Certified sustainable palm oil. Suppliers of palm oil certified as sustainably produced (in line with RSPO criteria) report lower than expected demand from importers. One explanation is that the global economic slowdown has curtailed demand from price-conscious buyers: reportedly, crude certified palm oil sells at a premium of about 50 USD per tonne (uncertified palm oil was traded 600-700 USD per tonne in recent weeks)."]
[2009,"September","India: commodity exchanges taxation. With a view to stimulate trade in commodities, the government decided to abolish transaction taxes levied on commodity futures trading and on commodity options."]
[2009,"September","India: vegetable oil import duties. After reducing import tariffs markedly during fiscal year 2008/09, the government prefers not to raise them again during 2009/10. As low tariffs remain in place, domestic oilseed and oil prices tend to remain lower, which leads to benefits for consumers but discourages domestic production."]
[2009,"September","Canada-EU dispute over trade in GM crops. The recent settlement of a long lasting dispute between the two countries is expected to favour in particular future sales of Canadian GM rapeseed into the EU."]
[2009,"September","China-Senegal land lease deal.  Reportedly, China is set to lease land from farmer cooperatives in Senegal to grow groundnuts. One third of the output is envisaged for export while the rest will be destined for local processing and consumption."]
[2009,"September","India: subsidized vegetable oil sales. The central government is considering to repeat last year’s sales of cooking oil through ration shops should retail prices rise. To this end, state-owned trading companies would be directed to import up to 1 million tonnes of crude palm oil. To make the operation economic, a subsidy of 15 Rupees per kg of oil sold would be made available."]
[2009,"September","Brazil: mandatory biodiesel use. Effective July 2009, the mandatory content of biodiesel in diesel is 4 percent; it started at 2 percent in Jan 2008 and became 3 percent in July 2008. A further increase to 5 percent is expected for January 2010 or three years earlier than originally planned. Annual biodiesel consumption in estimated to exceed 1.5 million tons by the end of this year.         "]
[2009,"September","China: public sales of soybeans. First sales of soybeans from state reserves have been reported in August. Sales were done through auctions. Reportedly, public soybean reserves (established for the first time last year in support of domestic soybean production) have climbed to between 5 and 7 million tonnes. More sales are expected as the government will try to free space for new-crop purchases. In addition, to facilitate disposal of state reserves, subsidies may be offered to crushers.           "]
[2009,"September","New options in palm oil futures trading. The Chicago Mercantile Exchange (which includes CBOT) and Bursa Malaysia are planning to jointly list dollar denominated palm oil futures using Malaysia’s Ringgit-based contract as a benchmark. At the same time, efforts to create its own price benchmark are going on in Indonesia, the world’s leading palm oil producing nation:  the Indonesia Commodity and Derivatives Exchange announced the launch of a new palm oil contract later this year, which follows the launch (with state support) of a new physical crude palm oil contract last June by the Jakarta Futures Exchange.   "]
[2009,"September","Brazil: soya restrictions to protect rainforest. Leading soybean traders and vegetable oil producers agreed to extend for another year the moratorium on buying soybeans grown on illegally cleared areas in the Amazon rain forest. The ban that went into effect three years ago has been extended to July 2010."]
[2009,"September","EU: GMO traces halt soy imports from USA. EU importers decided to temporarily suspend soybean imports from the USA after traces of unauthorized GM maize (i.e. varieties not cleared for use in the EU) were found in US soymeal shipments. The EU applies a zero tolerance policy for imports of unauthorized GM material. The USA is a primary source of supply for the EU’s highly import dependant feed/livestock industry.  "]
[2009,"September","Brazil: biodiesel exportation. The government would like to encourage regular exportation of soy-based biodiesel, notably to the USA and EU. Reportedly, sustainability studies have been carried out proving that in the country biofuel is produced sustainably and in line with EU norms."]
[2009,"September","Peru: biodiesel imports. The country is reported to have started anti-dumping investigations on biodiesel imports from the USA, which could lead to the imposition of countervailing duties."]
[2009,"September","India-ASEAN free trade agreement. The newly signed agreement will include a ceiling of 37.5 percent on India’s import tariff for crude palm oil. In recent years, the tariff rate ranged between 80 and zero percent. The ceiling could benefit Indonesia’s palm oil exports to India.           "]
[2009,"September","EU-Indonesia efforts to encourage sustainable palm oil. Reportedly, the EU could offer incentives to Indonesian producers that adopt sustainable production methods. Supposedly, investment aid, tax exemption or refunds would be considered for companies that succeed in reducing GHG emissions along the production cycle."]
[2009,"September","USA: export credit programme. Funding for export credit guarantees has been raised beyond original allocations for selected countries. The measure aims at facilitating trade flows during the current period of slow global economic growth and reduced availability of private credit."]
[2009,"September","EU: special market promotion programmes. EU co-financing for 1-3 year market promotion programmes amounting to a total value of Euro 62.1 million has been approved. The commodities covered under the programmes include olive oil.                          "]
[2009,"September","Africa: Asian rust resistant soybean. A variety resistant to the fungus has been developed within the region and should be available to farmers in time for the 2010 crop, thus enabling farmers to cultivate soybeans without applying costly fungicides. Cultivation in key producing countries, including Nigeria, Uganda and South Africa, should benefit greatly."]
[2009,"September","China: crushing capacity. The country’s soybean processing capacity is expected to expand further as both, state-owned and leading private edible oil producers are reported to be investing into new, large processing plants.  "]
[2009,"September","Progress in sustainable oil palm. According to a study issued by CIFOR (an international research institute belonging to the CGIAR network), progress in the application of sustainability standards such as those developed by RSPO remains limited. Inter alia, the report points to the need for legal and political reforms at national level to achieve progress.     "]
[2009,"September","Food processors reduce trans fat presence. Unilever-USA intends to eliminate all artificial trans fats (i.e. those stemming from the partial hydrogenation of oils) from its margarine brands by early 2010. The food company accounts for half the margarine spreads sold in the country. Concurrently, Cargill informed that it is reorganizing and downscaling its production of hydrogenated oil as the company needs to adjust to a significant reduction in demand."]
[2009,"September","India: changing stance on GMOs. Reportedly, the government is planning to support the introduction of GM food crops in the country in the coming years with a view to raise crop productivity and thereby contribute to reducing malnutrition and hunger. To date the only GM crop allowed in the country is BT cotton.            "]
[2009,"September","Indonesia: palm oil export tax. Following the decrease in the international price for crude palm oil, the country’s variable exports tax has been reduced to zero percent in July and is set to remain suspended also in September."]
[2009,"October","Biodiesel mandatory use: Several countries reported about their plans regarding biodiesel utilization mandates: Coming November, in Canada, Manitoba will be the first province to introduce a mandatory blend (B2). In Uruguay, the introduction of B2 was postponed from January to October 2009 due to delays in setting up the fuel distribution system. Brazil confirmed its plan to move from B4 to B5 in July 2010, i.e. three years ahead of the originally envisaged date; the higher blending level is estimated to push annual biodiesel demand to 2.2 mill tons. In Argentina, mandatory biodiesel use is confirmed to start in January 2010 at the B5 level, implying an annual biodiesel requirement of about 700 thousand tons. The government of Israel has put programmes for the gradual introduction (over the 2009-2011 period) of mandatory blending (B5) on hold along with the planned tax breaks."]
[2009,"October","GM flaxseed: GM flaxseed that is not authorized for food or feed use in the EU has been detected in Canadian shipments to EU member states. Actually, in Canada, which is the EU’s main supplier of flaxseed, no GM variety of flaxseed is presently registered for commercial production. The country decided to suspend all exports of flaxseed to the EU, while concerned authorities have launched comprehensive investigations with assistance from the industry and in close collaboration with EU counterparts."]
[2009,"October","EU - soybean imports: Traces of unauthorized GM material in soybean shipments originating from the USA led to the rejection of cargoes at EU ports. Consequently, importers are reported to have voluntarily suspended purchases from the USA, a major source of supply for the EU’s heavily import dependent feed industry. Reportedly, the increased uncertainty about the European feed industry’s future supply with soybean meal is causing concern among EU Commission officials as to the viability of the bloc’s current zero tolerance approach on unauthorized GM material. Pressure for a revision of this policy and for the expeditious approval of new GM varieties seems to be rising."]
[2009,"October","India - GM crops: First steps towards the cultivation of GM crops have been reported with the approval in principle of, inter alia, herbicide resistant soybean varieties by the Ministry of Agriculture. However, approval from the Ministry of Science and Technology and the Ministry of Environment is still outstanding."]
[2009,"October","Biodiesel compatible engines: Reportedly, Ford has announced the development of a new diesel engine for a pickup model that will be fully compatible with biodiesel up to blending ratios of 20 percent."]
[2009,"October","China - support to crushers: In an effort to raise sales from state soybean reserves, reportedly the government is considering to offer a subsidy (amounting to USD 30 per ton) to soybean crushers."]
[2009,"October","India - biodiesel consumption: Reportedly, Indian Railways, a major diesel consumer (that also runs 1800 state busses), decided to get involved in vegetable oil-based biodiesel production to meet its future requirements."]
[2009,"October","USA - state laws on biofuel use: Reportedly, the implementation of biofuel legislation in individual states is awaiting direction from the federal Environmental Protection Agency as to which type of biofuels will meet anti-carbon pollution standards.      "]
[2009,"October","2nd generation’ GM crops: According to a survey carried out in the EU, consumer acceptance of 2nd-generation GM crops featuring output traits that provide benefits such as improved nutritional quality is better than in the case of 1st-generation GM crops that only provide producer-related benefits."]
[2009,"October","Improved soybean varieties in SE Asia: Reportedly, countries belonging to the Greater Mekong Delta Sub-region (Cambodia, China, Laos, Myanmar, Thailand and Vietnam) see good opportunities to develop suitable, high-performance soybean varieties through conventional breeding techniques as opposed to employing genetic modification."]
[2009,"October","Food industry - use of vegetable fats:  Reacting to feedback from consumers, Cadbury New Zealand is reported to have announced that it will stop using palm oil in the production of its dairy milk brand chocolate and revert to using only cocoa butter."]
[2009,"October","High lauric acid canola: The development of a canola variety with 60 percent lauric acid content (via genetic modification) is reported from Canada. Potentially, the new variety will compete with coconut and palm kernel, the key sources of lauric oil traditionally used in the global market."]
[2009,"December","Oil palm and rapeseed genome: Important progress in sequencing the genome of the two crops has been reported. The scientific advances are expected to accelerate the development of crop varieties with higher yield potential and better resistance to diseases and environmental stress."]
[2009,"December","Supply of sustainable palm oil: Estimates based on current RSPO (Roundtable on Sustainable Palm Oil) membership suggest that the amount of palm oil certified as ‘sustainably produced’ is set to grow significantly in the next years. Reportedly, in May 2009, 0.5 million tons of certified produce were available; but this figure could rise to 4.5 million tons by end-year, and has been estimated at 9.3 million tons for 2015. These buoyant estimates assume that all RSPO member companies will progressively certify their entire output. Absorbing such amounts would require an expansion in global demand supported by the use of certified palm oil in power plants and as biodiesel feedstock.    "]
[2009,"December","Use of sustainable palm oil: Retailer and private label brand Sainsbury’s in UK has pledged to use, by 2014, exclusively palm oil certified as sustainable, or CSPO; reportedly, the decision was taken after the company observed sales increases following the introduction of CSPO in certain processed foods. Likewise, Nestle committed to use only CSPO by 2015 (when sufficient quantities are expected to be available), and a similar pledge was also made by Marks & Spencer. The gradual change in buying policies - by which the industry is responding to new consumer concerns - is made possible by increasing supplies of CSPO, the possibility to trade certificates and the related decrease in the CSPO price premium - from, reportedly, USD 40 per ton last year to USD 10-15 today. Some market participants feel that, as supplies of CSPO continue rising, the price for certified and conventional product will eventually converge.      "]
[2009,"December","Monitoring of sustainable palm oil use: Hoping to encourage the use and accelerate global purchases of available sustainable palm oil, WWF (a RSPO founding member) has announced the creation of a ‘Palm Oil Buyers Scorecard’ - a system to publicly grade leading global retailers, traders and manufacturers of palm oil and palm-based products based on their commitment to purchase, use and promote sustainable palm oil. Preliminary results seem to suggest that today only few buyers in Europe are using CSPO, despite its increased availability and previous commitment by companies to purchase it."]
[2009,"December","Palm oil environmental footprint: Malaysia - a potential exporter of palm oil- based biofuel to the EU - decided to conduct in-depth work on the calculation of the oil’s impact on the environment. The decision was triggered by forthcoming requirements in the EU, by which, from 2010, biofuels should reduce GHG emissions by at least 35% compared to fossil fuels. The default value for palm oil current assumed by the EU is 19%. However, biofuel suppliers can claim bigger saving rates by providing adequate proof. Currently available studies put GHG saving rates in palm oil in a wide range of 19 to 71%, reflecting rather diverse and complex methods of calculation. Interestingly, up to half of total GHG emissions in palm oil appear to stem from the release of methane gas during the processing stage. Consequently, in Malaysia, efforts are under way to equip palm oil mills with methane capturing technology. Reportedly, the issue of GHG emissions is also under debate at RSPO, with members split over the proposed incorporation of emission targets into the standards for sustainable production. Experts noted that the market is yet to provide clear signals on how it will value efforts by producers to control emissions and feet that, for producers to make commitments, global compensation mechanisms will need to be put in place."]
[2009,"December","Edible cottonseed: Researchers in the United States reported the development of genetically modified cottonseed that is both free of gossypol (and hence fit for human consumption) and resistant to insects and diseases. The new variety has the potential to add protein to the diet of poor people and raise the income of cotton farmers. Further tests and approvals by regulatory bodies are required before the seed can be made commercially available."]
[2009,"December","Philippines - trans fat regulation: Earlier this year, legislation regulating the commercialization of trans fat was passed. Accordingly, the sale of fats and oils containing significant amounts of trans fats is not allowed; food manufacturers are required to indicate trans fat content on product labels; and trans fat thresholds apply to products that claim to be “free of trans fatty acids”. The regulations are expected to contribute to higher consumption of domestic coconut oil at the expense of imported hydrogenated oils.    "]
[2009,"December","Indonesia - palm oil export tax: The export tax on crude palm oil will remain suspended in December, i.e. for the fifth consecutive month. The base export price has been adjusted upward but remains below the level that would trigger a reintroduction of the export tax."]
[2009,"December","Malaysia - smallholder oil palm support: Reportedly, the government has allocated funds to assist smallholders in adopting sustainable production practices and in adhering to the RSPO certification process. Furthermore, during 2009-10, financial incentives will be provide to smallholders to allow them to participate in replanting programmes aimed at raising yields - from 20 tons of FFB per ha today to 35 tons in 2020."]
[2009,"December","Malaysia - mandatory biodiesel use: Compulsory 5% blending was scheduled to come into effect country-wide in January 2010, but that rate may now be reduced to 3%. In Malaysia, producers of biodiesel are allowed to buy their feedstock, palm oil, at a fixed, subsidized price, with the oil palm industry contributing to the funding of this scheme. As the recent strengthening in the market value of palm oil implies a higher subsidy, and considering the very slow uptake of biodiesel consumption so far, the government and the oil palm industry plan to contain the outlays for biodiesel subsidization by reducing the compulsory blending rate. Furthermore, to spur domestic biodiesel demand, the government has announced that it will drop the 10% tax currently applying to biodiesel sales."]
[2009,"December","China - soybean production and processing: The government continues to be concerned about the country’s strong dependence on imported soybeans and the uncontrolled expansion in the crushing industry. Reportedly, measures under consideration by the government include a subsidy to soybean farmers, the amount of which would be inversely related to the market value of the crop. Also measures to encourage plantings and processing of groundnut, rape, sunflower and cotton seed will continue, and no new soybean crushing projects will be approved and structural improvements in the processing sector will be encouraged."]
[2009,"December","China - oilseed procurement and public stocks: Reportedly the government decided to release 2 million tons of soybeans (from the 2008 harvest) from state reserves, offering crushers a subsidy of Yuan 210 per ton. Furthermore, public purchases and stockpiling of soybeans is set to resume in December and will last until April 2010. The price paid to farmers should be Yuan 3740 per ton, or about 1% above last season’s procurement price, while the crushing subsidy could be reduced to Yuan 160 per ton. In line with its effort to support farmers and stabilize domestic output, the government also announced that it will buy 1 million tons of rapeseed (in addition to the 5 million tons planned last June) at a price of Yuan 3700 per ton. Reportedly, by end September, 3.8 million tons of rapeseed had been procured."]
[2009,"December","China - rapeseed imports: As of November 15th, rapeseed shipments entering the country are required to be certified free of blackleg disease for phytosanitary reasons - a regulation that hurts in particular exports from Canada (and possibly Australia), where the disease is no longer a major threat, but continuous to be present. The three countries are involved in negotiations about a possible delay in the implementation of the new regulation and about alternative risk mitigation measures. Meanwhile, rapeseed crushers in China are expected to turn to domestic supplies, including the ample government stocks accumulated during the past season."]
[2009,"December","India - biodiesel exportation: An international biofuel producing company has reported a first shipment of biodiesel from India to a customer in Europe."]
[2009,"December","India - vegetable oil exports: The temporary ban on bulk shipments of vegetable oils introduced in early 2008 (to secure domestic supplies and contain price rises) has been extended until October 2010."]
[2009,"December","India - commodity exchange: Reportedly, the Indian Commodity Exchange has become operational end November and commodities traded include soy oil.                                 "]
[2009,"December","Brazil – soybean moratorium: The moratorium on buying soybeans planted on land illegally cleared in the Amazon region has been extended for a 4th year. Meanwhile, NGOs have launched discussions on the environmental effects of converting vast tracts of Savannah into arable land, in particular for cultivating soybeans."]
[2009,"December","Brazil - currency policies: Reportedly, the government is determined to tax foreign investments in an effort to prevent further appreciation of the national currency vis-à-vis the US dollar. The strength in the Real tends to raise input costs for farmers and erodes export earnings - for instance from soybean sales."]
[2009,"December","Brazil - mandatory biodiesel use: In recent years, the government accelerated the introduction of mandatory blending rates (inter alia to make better use of the installed production capacity), and compulsory 5% blending is set to come into force nation-wide in July 2010. Now the government was reported to consider gradually moving to 20% blends in big cities by 2015, which is estimated to raise annual biodiesel consumption to 5.5 million tons."]
[2009,"December","Colombia - biodiesel mandatory use: biodiesel blending of 10% will become compulsory in January 2010 - up from 5% in 2009. The new target is estimated to translate into an annual requirement of 500 000 tons of biodiesel - entirely based on domestic palm oil, production of which is set at 0.8-1 million tons in 2010."]
[2009,"December","ASEAN free trade agreement: The agreement (referred to as AFTA) is set to take effect next January, implying the introduction of common preferential tariffs ranging between 5 and zero percent for all products, including those previously deferred under sensitive lists. The six founding members of ASEAN agreed to immediately reduce their tariffs on key agricultural products - including soybeans as well as soy, palm and coconut oil - to zero. This measure is expected to affect internal trade patterns, with the most competitive producers likely to gain market shares."]
[2009,"December","Africa - new investments in oilseed production: Several countries in the region are reporting renewed interest in oilseeds, in particular as biodiesel feedstock. Government backed, large scale commercial production of biodiesel is planned in Rwanda, where a private consortium is ready to develop 10 000 ha of jatropha, aiming at the production of 16 million litres of biodiesel annually. Other biodiesel feedstock under consideration include, high-altitude oil palm, moringa, castor and soy. Kenya has introduced a plan for developing biodiesel from jatropha and other locally grown trees and is eyeing a biodiesel blending ratio with fossil diesel of 5%. Comparable plans have also been launched in Ethiopia, focusing on castor, jatropha and oil palm cultivation on arid land not used for food crops. In Liberia, the government is securing major investments in oil palm by private companies from Malaysia and Indonesia, expecting significant improvements in livelihoods and social welfare in poor regions, industrial development and new export earning opportunities. Meanwhile, in Uganda, NGOs have criticized large scale investments in oil palm for giving insufficient regard to environmental regulations and social concerns. Exposed to similar criticism and concerned about national food security, in Tanzania, the government decided to closely monitor (and partly suspend) widespread land acquisition and investment by companies involved in biofuel production (from jatropha and other feedstock). And finally, international research is encouraging farmers in Sub-Saharan Africa to cultivate soybeans to improve both, their income and local diets. Soybean is promoted as a versatile crop that can grow well in the region and is suited for small-scale farming and processing, and new uses and marketing systems are expected to reduce the farmer’s dependence on the meal and oil industry."]
[2009,"December","Turkey - GMO import rules: A new law regulating the importation of GMO material that has come into force end October started to negatively affect the country’s imports of soybeans and soy meal. Foreign rape and sunflower seed, where non-GMO material is readily available, are expected to partly fill the gap.         "]
[2009,"December","USA - groundnut policy reform: The government reported that landmark policy changes enacted in the early 2000s transformed the national groundnut sector by eliminating longstanding supply controls and restrictions. Guided by market forces, the industry is reported to have adjusted quickly, resulting in fewer and larger farms in the regions best adapted to production. Total area of and prices for groundnut have fallen, but more efficient and competitive production supported renewed demand growth, especially in export markets."]
[2009,"December","USA – biodiesel tax credit: The tax credit of USD 1 per gallon introduced in 2004 is set to expire at the end of the current year. The tax concession has contributed to making biodiesel an economically viable alternative to conventional diesel. Legislation extending the tax credit by 5 more years - to allow the biodiesel industry to grow further - is reported to be under consideration."]
[2009,"December","USA - rapeseed meal imports: After detecting harmful salmonella bacteria in shipments from Canada, the US Food and Drug Administration introduced import alerts on rapeseed meal plants operated by major processors in five Canadian provinces. The alerts allows inspectors to detain shipments at the border. In the United States, zero tolerance applies to salmonella bacteria. Reportedly, the import measure resulted in a reduction in crushing and a redirection of meal exports to other markets in Canada."]
[2009,"December","EU - approval of GMO maize: Importation and consumption of four new GMO maize varieties has been officially approved. The decision is expected to lead to a resumption (in December) in soybean and meal imports from the United States. Shipments had come to a halt during September, after small traces of still unapproved GMO maize were detected in some cargoes."]
[2009,"December","EU - butter market intervention: Due to continued oversupply and persistently low prices, public buying into intervention has been allowed to continue uninterrupted until February 2010, i.e. the start of next year’s official intervention period (which normally runs from March to August only). The measure aims at stabilizing milk prices for dairy farmers."]
[2009,"December","EU - biofuel environmental footprint: EU standards for calculating the footprint of biofuels and their feedstock are expected to be reviewed during 2010, once the EU releases new guidelines for calculating the impact of indirect land use changes (ILUC). In the meantime, a group of NGOs has claimed that the EU’s current renewable fuel targets could increase rather than reduce overall GHG emissions in the transport sector, and, accordingly, recommended to replace current energy-based targets with purely GHG-based targets, including life-cycle impact assessments and ILUC indicators. In addition, also the EU’s recent assessment that biofuel production in the EU can be increased via productivity gains and improved second generation technologies - rather than major expansions in area - has been questioned."]
[2009,"December","EU - private sector complaint against US biodiesel export practices: Claiming that US biodiesel producers/exporters are circumventing the EU’s anti-dumping and countervailing duties, the European Biodiesel Board (EEB) announced that it will lodge a new complaint to the EU trade authorities."]
[2009,"December","Russian Federation - import tax on tropical oils: According to private sources, the 10% temporary tariff - introduced last June to afford protection to the domestic dairy industry - could be lifted in January in an effort to address a domestic shortage in vegetable oil that is expected to arise from reduced domestic crops."]
[2009,"December","South African Republic - trans fatty acids legislation: The government is developing legislation aimed at reducing certain trans-fats in processed and prepared foods so as to contribute to the reduction of chronic diseases associated with the presence of TFAs in the diet. The proposed law would affect especially the use of  partially hydrogenated vegetable oils, while naturally occurring TFAs in animal fats would be excluded. Comparable legislation is already in place in Denmark, Canada and the United States."]
[2010,"January","Indonesia - palm oil shipment facilities: Reportedly, official sources announced plans to build three new ports for shipping palm oil to handle rising output in the world’s top producing country. Traders reported that congestions at ports are increasingly hampering exports from the country. The government is also planning to provide incentives to boost the development of the palm oil industry at the downstream level with a view to raise value addition and provide more employment."]
[2010,"January","India - trans fat regulation: The Food Safety and Standards Authority of India was reported to consider introducing a 10% limit on the amount of trans fat contained in partially hydrogenated vegetable oils (notably vanaspati or vegetable ghee). The limit could come into effect in 2010 and would be reduced to 5% during the three subsequent years. The measure is being considered as a means to lower the incidence of cardiovascular diseases."]
[2010,"January","Indonesia - palm oil export tax: Following the rise in the international price for palm oil beyond 750 USD, the government has announced the reintroduction of the export tax on crude palm oil at 3% in January 2010. The tax had remained suspended since August 2009."]
[2010,"January","Myanmar - vegetable oil importation: Reportedly, the country’s health ministry has banned the importation of selected brands of vegetable oils of Thai and Malaysian origin on the basis that these contain chemical colour agents that do not conform with the relevant health standards."]
[2010,"January","Argentina - mandatory biodiesel use: A delay in the implementation of the 5% mandatory biodiesel blending into conventional diesel from January to March 2010 has been reported, Apparently, negotiations between the government and biodiesel producers regarding the required adjustments in infrastructure could not be completed in time."]
[2010,"January","Republic of Korea - biodiesel support: Reportedly, the government has decided to raise mandatory biodiesel blending to 2% in 2010 compared to the 2009 level of 1.5%. In addition, also the tax due on diesel fuel will be waived. Korea started blending with biodiesel in 2006 as the first country in Asia."]
[2010,"January","India - coconut support: A new insurance scheme for coconut farmers has been launched in Kerala, the country’s main coconut growing state. Farmers are expected to pay 25% of the insurance premium, while the remainder will be borne by the federal and state government."]
[2010,"January","EU - biodiesel tax breaks: Norway decided to significantly reduce the tax break enjoyed by biodiesel; the measures is taking effect in January 2010. Similarly, Italy plans to drastically cut the biodiesel quota that enjoys reduced excise duty. By contrast, in Germany, the government  decided to postpone the gradual rise in taxes levied on biofuels that was to be implemented from 2010 onward."]
[2010,"January","USA - biodiesel tax credit: The US House of Representatives has approved the extension of the USD 1 per gallon tax incentive - which was due to expire on 31 December 2009 - by one year, i.e. through the end of 2010. Now final approval is required by the Senate. According to industry sources, biodiesel production could become uneconomic in the absence of the tax credit."]
[2010,"January","Sustainable palm oil:Reportedly, at a recent RSPO meeting, WWF reported that despite the availability of safe, environmentally-friendly palm oil options, Western companies did not appear to meet commitments to only buy sustainably produced palm oil. The organization found that, while RSPO members were increasingly adopting improved production practices, the major issue of GHG emissions involved in land use changes was not adequately addressed and that  related measures continued to be of a voluntary nature only.Meanwhile, global consumer goods company Unilever decided to suspend purchases of palm oil from a particular supplier in Indonesia until the same could prove that its plantations were not damaging high conservation value forests nor expanding onto peatland areas.In the meantime, official sources in Indonesia confirmed the national target to expand total area under oil palm to 18 mill ha (from today’s level of 9.7 mill ha) -  while fully adhering to social, economic and environmental sustainability standards. Allegedly, the expansion was needed to allow the country meeting its commitments regarding overall reduction in GHG emissions. In Colombia, the government seems determined to promote environmental and social certification in palm oil-based biofuel production. It claims that current oil palm production and the sector’s planned expansion does not threaten local rainforests nor displace food crop production thanks to the availability of vast tracts of underutilized agricultural land."]
[2010,"January","China - soybean import licensing: Reportedly, the government has announced that all foreign soybeans purchases will become subject to an automatic import license system. The measure would facilitate monitoring the flow of soybean imports into the country. Among traders, concern has been voiced that the new licensing system could delay shipment operations."]
[2010,"February","THAILAND - exports of palm oil under AFTA: Thai sources estimate that as a result of the common preferential tariffs recently introduced under the ASEAN Free Trade Agreement (AFTA), the country will loose 2.6% or US$ 46 million of its export business to Malaysia."]
[2010,"February","ASEAN-China free trade area (ACFTA): The trade agreement has come into force at the same time as trade got liberalized within the ASEAN block itself. Under the accord, China and the six founding ASEAN countries (Brunei, Indonesia, Malaysia, the Philippines, Singapore, and Thailand) will remove tariffs on 90 percent of imported goods. The other four ASEAN members (Cambodia, Laos, Myanmar, Vietnam) will follow suit in 2015. As to oilseeds, oils and meals, ASEAN exports of palm oil (primarily from Malaysia and Indonesia) are expected to benefit from improved access to the Chinese market. Palm oil, which belongs to the list of sensitive products, will see its import tariff reduced from 30 percent to 9 percent, and further reductions are scheduled for the coming years."]
[2010,"February","CHINA - rapeseed state reserves: The country’s rapeseed stockpiling programme continues to be active: reportedly, state agency Sinograin bought 4.05 mill tons by last December and the purchasing programme has been extended to February 2010. The operations, which include a fix price offered to farmers, tend to stimulate traders’ interest for cheaper rapeseed imported from abroad."]
[2010,"February","CHINA - soybean crushing capacity: With new crushing facilities expected to come on-stream this year, the country’s annual soy processing capacity could approach 100 million tons. However, the current capacity utilization rate is estimated at less than 50%. Reportedly, the government could reject new applications for processing plants or expansions with a view to curb over-capacity."]
[2010,"February","INDIA - soybean futures trading: Reportedly, soybean processors are calling for curbs on futures trading in soybeans. They are concerned about the recent hike in domestic soybean prices - which affect the country’s soymeal export prospects - and claim that futures operations have contributed to the rise in prices. The concerned regulatory bodies have rejected these requests, saying there was no evidence for the suggested effect on prices."]
[2010,"February","INDONESIA - infrastructure development:  Delegations of government and business leaders from Indonesia and Japan started discussing a project under which Indonesia - assisted by Japanese private companies - will accelerate infrastructure development in selected regions to assist industrial growth. The initiative is expected to benefit the palm oil industry and allow further growth in the sector."]
[2010,"February","KENYA - domestic market competition: The country’s Commission on Monopolies and Prices reportedly has ordered in-depth investigations into activities of edible oil producers and distributors for possible cartel activities and collusion to control domestic prices taking advantage of market dominance."]
[2010,"February","LIBERIA - oil palm investment: A major Indonesian oil palm operator is reported to consider investing in Liberia’s oil palm industry. Negotiations with the government on a concession agreement are reported to be on-going. The project will have to conform fully to the country’s environmental master plan and standards. The investment plan envisages the development of up to 240 000 ha (including 40 000 ha run by out growers), and would produce over one million tons of palm oil per year."]
[2010,"February","UGANDA - oil palm development: Reportedly, the government has released new funds to expand oil palm growing in the country via public-private partnerships. Also, a palm oil pricing committee has been set up to ensure adequate returns for farmers. Public funds will be made available for purchasing land, and district leaders have been urged to allocate more land for oil palm cultivation. Meanwhile, according to private sources, under an on-going public-private project, the government has been asked to make available for oil palm growing grassland portions that belong to a forest reserve."]
[2010,"February","AUSTRALIA - GM rapeseed: Reportedly, the government has announced that, from this year, GM rapeseed may be grown in the country. Once GM varieties enter the market, trade with the EU - where importation of GM material is subject to specific regulations - could be affected."]
[2010,"February","CANADA - effects of biofuel production: Reportedly, the government has commissioned a study on possibly harmful environmental effects associated with the production of biofuels. Official sources pointed out that the commissioning of the study does neither presuppose that there are any such effects nor alter the government’s commitment to renewable fuels."]
[2010,"February","CANADA - support to rapeseed sector:  The government and the Canola Council of Canada will together invest in the development of a comprehensive market strategy for the rapeseed sector. The initiative aims at improving access to international markets. Measures will include the examination of non-tariff trade barriers and the promotion of best practices so as to meet the standards of importing countries."]
[2010,"February","GATES FOUNDATION: A reputed biotech expert with extensive experience in the development of genetically modified seeds has been appointed as head of the Foundation’s Agricultural Development Program. In recent years, the foundation focused much of its agriculture efforts on helping small farmers improve production and commercialization of their crops. In addition, the foundation started to invest in higher tech solutions for combating hunger and disease.  "]
[2010,"February","Jatropha curcas genome: Although considered a promising biofuel crop for developing countries, jatropha’s off-take as a commercial crop has so far been hampered by the absence of certified plant material with proven yield potential. Reportedly, to address this problem, a group of science companies in the US is committed to work on the plant’s genome and on the systematic introduction of promising traits, so as to develop stable, high performance and region-specific cultivars."]
[2010,"February","GM soybean beneficial to consumers: Most GM soybean varieties developed to date were designed to help farmers by making weed and disease control easier. Now Monsanto is ready to launch a new variety that - rich in omega-3 fatty acids - promises to deliver health benefits for consumers. Researchers generally concur that omega-3 fatty acids are helpful in combating cardiovascular diseases and can benefit the brain."]
[2010,"March","USA - revised Renewable Fuels Standard: The new programme (referred to as RFS-2) that came into effect last month sets the target for national consumption of biomass-based diesel in 2010 at 0.65 billion gallons, corresponding to 1.1% of total diesel sales, to which the 0.5 billion gallons that were not consumed last year can be added. Reportedly, 20% of the target may be carried into 2011. The mandate will increase gradually in 2011 and 2012, while subsequent targets will be determined later. Furthermore, starting this year, measurement of GHG emissions during fuel and feedstock production, distribution and use will include emission stemming from indirect land use changes. Biomass-based biodiesel must lead to at least 50% reduction in lifecycle GHG emissions compared to petroleum-based diesel. According to the new RFS-2 standards, soy oil and waste oils, fats, and greases all comply with this requirement. Reportedly, the default GHG emission savings of soy oil-based biodiesel has been set at 57%, which, depending on the production method, can even reach 85%. For domestically produced feedstock no additional certification will be required. As to competing palm oil, it may or may not meet the requirements depending on how it is produced; compliance will be determined based on certification provided by the producer. Overall, under RFS-2, demand for soybeans as biodiesel feedstock can be expected to rise in the long run, likely lifting domestic soybean prices (and hence farmer incomes as well as food costs) and reducing the country’s soybean exports compared to the 2006 reference situation."]
[2010,"March","EU - agricultural support: The EU’s latest official notification to the WTO - which covers the period up to 2006 - shows a significant increase in total farm support outlays since 2002. Reportedly, total support outlays added up to Euro 90.7 billion in marketing year 2006/07, compared to 75.6 billion in 2002, when the level of support reached a fifteen- year low. The rise is due to a surge in “green box” payments, i.e. subsidies that have no, or only minimal effects on trade or production. This surge is only partly offset by a drop in “amber box” (most trade distorting, production-linked) payments and “blue box” (production limiting) payments. Since 2005, oilseed producers - and arable crop producers in general - benefit primarily from green box payments, notably the ‘single farm payments’ that are decoupled from production and thus exempted from reduction requirements under WTO."]
[2010,"March","INDONESIA - palm oil exports: According to official sources, the country plans to limit exports of crude palm oil at 50% of output by 2015 and 30% by 2020 - in an effort to boost the domestic downstream processing sector, thereby creating employment. To attract the required capital for investment, the government would provide fiscal incentives and encourage banks to lend at reduced interest rates. Currently, well over 50% of palm oil exports are in crude form. Reportedly, the industry expressed concern over these plans, pointing out that such policies could induce importing countries to raise tariffs on refined palm products - also in a bid to encourage refining and downstream processing at the local level."]
[2010,"March","INDONESIA - PAKISTAN, oil palm trade: Indonesia is reported to be negotiating with Pakistan about its import tariff for palm oil. Currently, due to a preferential trade agreement that Pakistan signed with Malaysia in 2007, Indonesian palm oil is subject to a higher tariff than produce coming from Malaysia. Indonesia aims to have its exports charged with the same tariff enjoyed by Malaysia."]
[2010,"March","CHINA - sales from state soybean reserve: Some 200 000 tons will be released from state reserves in a move to free public storage space. During 2008/09 marketing year, total state purchases amounted to 7 million tons. However, according to market sources, the state-set purchase/selling price of 3774 Yuan per ton is both, too low for soybean farmers to sell and too high for soybean processors to buy: rising domestic production costs and competitively priced imports continue to threaten the market for home-grown soybeans."]
[2010,"March","UKRAINE - sunoil export quota: Reportedly, the government is considering to reinstall temporary export quotas for sunflower oil. At their current pace, export activities tend to result in domestic shortages, price rises and idle crushing capacity.  Monthly shipments could be capped at 159 thousand tons, which compares to recent sales of 200 thousand tons. The last time such quotas were in place was in mid 2008."]
[2010,"March","Spread of GM oilseeds: According to ISAAA (the International Service for the Acquisition of Agri-Biotech Applications), in 2009, GM soybeans accounted for three-quarters of global soybean plantings (or two-thirds, when FAO data for total area are used). Herbicide tolerant GM soybeans remained the world’s principal biotech crop in 2009, occupying over 50% of the global area cultivated with GM crops. Another 5% of the global GM crop area is occupied by biotech rapeseed. Globally, one out of five hectares planted to rapeseed use GM varieties."]
[2010,"March","BRAZIL - new GM soybean: A herbicide-tolerant soybean jointly developed by private company BASF and public research institute EMBRAPA has received approval for commercial cultivation by the relevant national authorities. The first genetically modified crop developed within Brazil will become available in the 2011/12 season. Meanwhile, the owners will seek approval in key overseas export markets and also initiate work on the crop’s adaptation to production and regulatory conditions in neighbouring countries that produce soybeans."]
[2010,"March"," Non-GM, herbicide tolerant plant: In Europe, a patent has been granted for the production of a non-transgenic plant tolerant of glyphosate and other widely used herbicides. Reportedly, tolerance is achieved by using the plant’s natural processes and without the introduction of foreign genetic material. This way, farmers would be offered a non-GM alternative that still enables them to maximize yields of key crops. Commercial application, if materialized, could prove interesting in countries where cultivation of GM material is subject to restrictions."]
[2010,"March","Biodiesel compatible cars ex-factory: General Motors announced that its new models of heavy- duty diesel pick-ups will have certified B-20 biodiesel capability (B20 is a blend of 20 percent biodiesel and 80 percent conventional diesel)."]
[2010,"April","AUSTRALIA - cultivation of GM rapeseed: After the states of New South Wales and Victoria, cultivation of GM rapeseed has also been approved in Western Australia. With the addition of the country’s most important rapeseed growing state, GM varieties will now be allowed on almost 90% of the country’s rapeseed area."]
[2010,"April","CHINA - soyoil import regulations: According to industry sources, the government is considering to tighten the procedures for granting import permissions for soybean oil and to enforce stringent rules on maximum solvent residue levels in imported oils. If introduced, such measures would affect nations exporting soybean oil to China, notably the country’s main supplier Argentina."]
[2010,"April","INDIA - agricultural support: The newly released 2010/2011 federal budget contains provisions to support agriculture as a whole, notably measures to ease the credit flow into the sector, to bring down input costs and to attract private investment into agriculture - especially for sugar and foodgrain warehousing as well as for cold storage. It also includes plans for extending the green revolution to the eastern region of the country and for organizing ‘pulses and oil seed villages’ in rainfed areas so as to enhance productivity in dryland farming and promote conservation practices. Other, nation wide initiatives to encourage oilseed production and improve productivity in that sector were not reported, nor plans to bring vegetable oil import duties back to their historic level."]
[2010,"April","INDONESIA - palm oil export tax: In response to rising global palm oil prices, in April, the ad valorem export tax will be raised to 4.5% in April (from the 3% rate applied since last January)."]
[2010,"April","INDONESIA - oil palm futures: The Indonesia Commodity and Derivatives Exchange is ready to launch a crude palm oil futures contract in April with a view to create a local benchmark price."]
[2010,"April","PERU - antidumping duties on US biodiesel: Reportedly, the provisional anti-dumping duty imposed late last year on imports of 100% biodiesel from the US has been revoked in March."]
[2010,"April","UNITED STATES - biodiesel tax break: The tax credit of 1 USD per gallon of marketed biodiesel - which expired last December, negatively affecting the profitability of biodiesel production - has been retroactively renewed until the end of 2010. To be enacted, a final bill still has to be issued. With the renewal, demand for soybean oil and other feedstock for biodiesel is set to resume. Currently, around 10% of annual soy oil output is absorbed by the biofuel industry."]
[2010,"April","Sustainable palm oil supply: RSPO has estimated current global supply of palm oil certified to comply with its sustainability criteria at 1.5 million tons per year, mostly coming from Malaysia. By the beginning of 2011, supply should double to 3 million tons as the number of certified plantations continues to rise. Due to the on-going expansion of supplies, the premium for certified palm oil is reported to have fallen from 50 USD per tonne at the end of 2008 to USD 10 today. While this should spur demand for certified oil, it could also discourage producers from shifting to the more expensive methods required to produce and market sustainable palm oil."]
[2010,"April","Environmental concerns in palm oil trade: Information published by environmental NGOs regarding alleged illegal land-clearing and improper land conversion by selected oil palm plantations in Asia could lead major traders and end-users of palm oil (including Cargill, Nestlé and Unilever) to shift sources of supply depending on the outcome of on-going investigations."]
[2010,"April","Mandatory biodiesel blending: ARGENTINA: Reportedly, the long announced B5 blending mandate has come into force in March. Private sources estimate the amount of biodiesel required per year to fulfil the mandate at 860 000 tonnes. Total biodiesel production in 2010 is forecast between 1.6 and 2.2 mill tons (compared to 1.2 mill in 2009), part of which will be exported. MALAYSIA: After a number of postponements, the government is reported to be ready to implement B5 blending in June this year and to make available public funds to defray the costs associated with production and distribution."]
[2010,"April","Chicago futures markets: Coming May, the CME Group Inc. intends to launch an electronically traded, US$-denominated futures contract for crude palm oil using the Bursa Malaysia Derivatives ringgit-denominated benchmark. The partnership between the two platforms aims at offering an alternative means of hedging risk to companies that trade in dollars and creates new opportunities for cross-trading with soybean oil."]
[2010,"May","CHINA - state purchases of rapeseed: Reportedly, government purchases of rapeseed for state reserves will continue this year. The official buying price has been set at CNY 3900 per ton."]
[2010,"May","EAST AFRICA - oilseed supply shortages: Reportedly, limited availability of locally grown oilseeds is causing oil crushing and refining plants to work below their installed capacity. Concerned processors use oil palm (Uganda) and sunflower and cotton seed (Tanzania) as raw material. Cooking oil consumption in both countries remains heavily dependant on imported oils."]
[2010,"May","EU - environmental sustainability of biofuel use: A study prepared by IFPRI (on behalf of the EU Commission) states that, at the currently assumed consumption levels - namely biofuels accounting for 5.6 percent of transport fuels in 2020 - the environmental sustainability of biofuels is not significantly reduced when the effects of indirect land use changes (ILUC) are taken into account. Above the 5.6% share, however, ILUC emissions could rapidly increase, potentially eroding the environmental sustainability of biofuels. For biodiesel, the study assumes that most of the required production increase comes from domestically grown rapeseed. It also claims that the environmental sustainability of palm oil-based diesel remains similar to that derived from rapeseed oil, even when peatland emissions are taken into account. To achieve maximum GHG emission reductions, the study recommends that import demand concentrate on more sustainable sugar cane ethanol. Also, the removal of import tariffs for biofuels is recommended as this should allow production and consumption to shift towards more emission-efficient biofuels, in particular sugar cane ethanol. The study has further fuelled the debate on the suitability of different biofuels and the implication of different targets. Assumptions on future EU production and import volumes and on the related direct/indirect land use changes remain controversial. The EU Commission is expected to issue its own final report on the subject at the end of 2010."]
[2010,"May","GERMANY - biofuel legislation: In line with the EU Renewable Energy Directive, last year Germany prepared national legislation introducing the need to proof sustainability via an officially approved certifier if biofuels were to be eligible for tax incentives and count towards national targets. Originally scheduled to come into effect on 1st July 2010, implementation has now been postponed to 1st January 2011. According to private sources, under the regulation rapeseed oil could be considered as a more sustainable biodiesel feedstock than palm oil or soy oil.               "]
[2010,"May","ICELAND - volcano eruption: The impact of the emission of volcanic ash on agricultural production in Europe and the CIS area is reported to be negligible as the magnitude of the eruption was not big enough to significantly affect regional weather patterns. However, the prolonged disruption of air travel across Europe has significantly affected parts of agricultural trade between Europe and the developing world: producers of horticultural products, cut flowers and other perishable goods in particular in Africa suffered greatly as they entirely rely on air transport and cannot easily divert to other markets. Trade in bulk commodities like oilseeds and derived products rely on shipment by sea and thus have not been affected."]
[2010,"May","INDIA - new rapeseed futures: The National Commodity & Derivatives Exchange Ltd. (NCDEX) is reported to have launched a rapeseed futures contract last month in the Northern state of Haryana."]
[2010,"May","Indonesian certification initiative: Reportedly, the agricultural ministry of Indonesia is planning to set up a national certification scheme for sustainably produced palm oil (Indonesian Sustainable Palm Oil, ISPO). The scheme, which could become operational before the end of 2010, aims at protecting sales to markets where environmental concerns are important. Details on how the certificates would be granted are not yet available. The initiative follows reports about important buyers like Unilever and Nestlé suspending purchases from certain Indonesian suppliers on environmental grounds."]
[2010,"May","PERU/CHILE - fishmeal and oil production constraints: Output from the world’s leading supplier Peru is anticipated to decline further in 2010. To protect marine resources during the on-going El Niño weather pattern, the government has limited the 2010 catch in the country’s main fishing areas to 2.5 mill tons  (compared to an average of 3.8 mill tons in the past five seasons), and the fishing season will be opened only on 13 May (compared to last year’s 20 April). The cuts hit world markets at a time when global supplies are already reduced following the massive, earthquake related damage to fish processing plants in Chile, the second biggest exporter of fish meal and oil."]
[2010,"May","Segregated supply chains: Global vegetable oil supplier IOI-Loders Crocklaan Europe announced the imminent sale of fully segregated, RSPO-certified palm oil. The company claims to be the first supplier in continental Europe. Sales are scheduled to begin once a new refinery featuring the technology and storage capacity that is required to fully segregate sustainable palm oil from all other oils opens in June 2010. The new chain should permit full traceability and would allow manufacturers to claim that a given product only contains certified sustainable palm oil."]
[2010,"May","Trials with 100% renewable diesel:Finnish refining and marketing company Neste Oil reports that it started testing diesel fuel based exclusively on renewable raw materials on a range of different cars. Allegedly, the fuel allows a reduction in GHG emissions of 40-80% compared to conventional fossil diesel."]
[2010,"May","USA - rapeseed meal imports: While the strict control system regarding possible salmonella contamination in rapeseed meal originating from Canada remains in place, another crushing plant in Canada has been added to the import alert list. The restrictions have lead to a temporary reduction in shipment from Canada as the USA represents Canada’s main client for rapeseed meal."]
[2010,"May","Progress in sustainable palm oil. Use of certificates: Unilever reports to have secured enough certificates of sustainable palm oil to cover the entire requirements of its business in Europe (as well as in Australia and New Zealand). The effort is part of the company’s commitment to source all its palm oil from sustainable sources by 2015. Unilever uses a certificate trading programme (GreenPalm) which allows palm oil producers that follow RSPO’s criteria for environmentally and socially sustainable farming to increase their earnings by selling certificates. Until properly segregated supply chains for sustainable produce become widely available, certificates are used as an option to encourage growers to comply with RSPO requirements and certify their plantations as sustainable."]

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