Is it true oil palm cultivation causes deforestation of tropical jungles?

The facts prove otherwise, we need to set the record straight.Less than 13 per cent or 4.2 million hectares of Malaysia's landmass is planted with oil palm. The bulk of oil palm estates were previously planted with rubber, coconut and cocoa.Some news reports say Malaysia clear-cuts its forests. However, the truth is that more than 60 per cent of the country?s land is permanent forest.

Food and Agriculture Organisation of the United Nations said the rate of deforestation in Indonesia is just above two million hectares/year, an area size similar to Johor. Other sources in the region, such as those put forward by many environment activists, feel that it is more likely to be between 2.4 and 2.6 million hectares a year. However, total planted area under oil palm in Indonesia amounts to only 6.5 million ha or less than 0.5 per cent of the total area under agriculture worldwide. Indeed, the annual net gain of new oil palm planting over the last three years in Indonesia has averaged less than 400,000 ha or between 15 and 20 per cent of the alleged rate of deforestation.

In comparison, Brazil lost more than 12.9 million ha of rainforest between 2000 and 2005 ? more than all the land planted under oil palm in Southeast Asia over the last 75 years.Do we sense double standards in green campaigns lobbied by selected environmentalists and journalists?

Does planting of oil palm emit more carbon dioxide than soya bean and rapeseed?

Many scientific studies already acknowledged that when compared to oil palm, soyabean and rapeseed are inferior in carbon emission reduction properties and sustainability.
 The truth is oil palm tree is very efficient in converting sunshine and carbon dioxide to oxygen, edible oil and biomass.

Are expansion of oil palm plantations gobbling up vast tracts of agricultural land?

Scientific studies show that oil palm emits 10 times more oxygen and absorbs up to 10 times more carbon dioxide per ha/year compared to annual crops grown in temperate countries. Similarly, the oil palm is very efficient in converting sunshine to carbon and edible oil. It can yield up to 10 times more oil/ha/year compared to annual oilseeds such as rapeseed or soyabean.

According to Oilworld's 2007 data, oil palm is grown on only 4.2 per cent of the world's agricultural land but it produced 32 per cent of global oils and fats. For a similar output, soyabean cultivation took up 10 times more land.If the target is to feed the growing world population and optimise agricultural land usage, the logical answer is palm oil.

Growing oil palm has helped alleviate poverty among landless farmers in Malaysia, via the Federal Land Development Authority (Felda) schemes ongoing for more than 50 years.To date, 112,635 Malaysian families have been placed in and benefited from the 317 Felda schemes spanning over 853,313ha.

Felda's aim to lift the living standards of rural folk via planting of oil palm and rubber is literally bearing fruit. We are beginning to see more big houses at the schemes.

Thanks to rising palm oil prices, the Malaysian government?s social programmes to bridge the income gap between rural folks and those living in the city is hastened.

Why are palm oil prices so high? Is palm oil increasingly being burnt for fuel instead of being processed into food?

The US is growing more corn to produce ethanol, a renewable fuel. Land previously grown with soya is being planted with corn. In Europe, farmers are given generous subsidies to grow rapeseed to fuel its biodiesel industry.  This has resulted in global supply shortage of corn, soya and rapeseed, prompting food manufacturers to use palm oil as a substitute. So, it is wrong to say palm oil is increasingly burnt for fuel, the reality is otherwise.

There are, in fact, strong and loud opposition to palm oil entering the European Union (EU) biodiesel market. In the US, Oregon state has legislated against usage of palm oil as biodiesel.

Why is that so?

The hidden agenda lies in trade rivalry. When the EU decided to develop their biodiesel industry, it was to give support to rapeseed and soya farmers. But now, they realise that they have to fork out a huge amount of subsidies just to make oilseed-based biodiesel competitive.

Palm oil, without subsidy, is already competitive. In fact, both governments of Malaysia and Indonesia impose tax on oil palm growers and use that money to ensure cooking oil remain affordable to the poor. Many European taxpayers are unhappy with the prospects of palm oil entering their market and enjoying the subsidy that is meant for their rapeseed.Fuelled by trade rivalry, these oilseed producers defend their livelihood by attacking oil palm growers via selected group of environmentalists and journalists.

What are the advantages of palm oil over other competing edible oils and fats?

Palm oil can be used in non-food applications for making soaps and detergents, toiletries and cosmetics, and other industrial uses. Such versatility is not normally present in other food bases.Oil palm is also grown naturally and products made from palm oil do not contain trans-fatty acid (TFA).

Soyabean, however, is mainly produced with genetically modified (GM) materials. There is growing resistance from consumers, especially in Europe, over the use of GM products and legislation is being introduced to label such foods.

Palm oil is all natural and can gain access to markets which demand for naturally-grown food. Similarly, growing concern over the danger of TFA has served palm oil well. Foods containing TFA must be labelled in the US and Europe.