T&E: Palm-based Biofuels In the EU and #NotInMyTank

In recent news, Transport & Environment (T&E) reported that palm oil is being used more as biodiesel than as food products within the EU. The European-based campaign group explained that the EU is experiencing a rise in vegetable oil use for energy production in the past 10 years, with 2019 being the “all-time high of 4.5 million tonnes in 2019 and that “[i]n contrast, the use of palm oil to make food dropped to an all-time low of 2.8 Mt”. It also provides an interesting map graphic (immediately below) showing palm biodiesel producers across Europe.

Following this, T&E and several other organisations have begun a #NotInMyTank movement on Twitter in attempt to urge European governments to stop its support for food-based biofuels, which includes those from palm and soy origins.

Oil Palm Demand in Pakistan

A Globoil India interview with Mr Rasheed Janmohammed, a specialist in the edible oil businesses in Pakistan, revelaed that the demand of edible oils in Pakistan has not decreased throughout the Covid-19 pandemic, despite the widespread closure of the food service and hotel industries (HoReCa) within the country. According to Mr Rasheed:

Our citizens have great quality of doing charity. Due to COVID-19, most of the Industries other than essential commodities were closed. The main sufferers were the laborers and lower middle class people. The citizens of Pakistan took the challenge and supply of ration was in abundance. This also increased the demand of Edible Oils as practically everyone was keen to carry out this noble gesture.

A review by the Malaysian Palm Oil Council (MPOC) painted a slightly different picture, of a near 10% or 133,844 metric tonne decline in Pakistan by the end of May 2020 compared to May 2019. MPOC stated that the decline is most likely due to supply chain disruptions caused by the six-week lockdown enforced in Pakistan, a precaution that adversely impacted the oils and fats trade.

SIIA Haze Outlook 2020: Recent Literature Findings

Continuing from our work on the Haze Outlook 2020 published on 23 June 2020, Segi Enam reviewed in brief the recent literature pertaining to Indonesian and Malaysian peatland and fires. In the past couple of years, there were nearly 150 research papers and articles published, with almost half focusing on fire occurrences. A smaller, but significant portion of these articles area also on peatland management and mapping, as well as people-related topics including agricultural livelihood and health impacts.

One of the more notable studies centred on early fire warning systems, including using ground sensor technology to collect environmental data (Kadir, Irie, and Rosa, 2019) and improvement to Indonesia’s current Fire Danger Rating System using satellite data to identify fires caused by human activity (Sanjaya et al. 2019). Some academics have also evaluated the effectiveness of fire control regimes within the local communities, a few of which were by Watts et al. (2019) and Yamamoto, Takeuchi, and Köhlin (2020), whereby it was found that economic incentive is required to ensure the efficacy of community-based fire prevention policies.

A significant number of academics have also recently been diving into the issue of peatland mapping and analysis via satellite imagery, including major researchers in peatland research. Vernimmen et al. (2020, along with notable authors Hooijer and Page), for example, have been addressing the mapping of deep peat carbon stock from aerial and field measurements, and found that occurrences deep peat in eastern Sumatra were previously underestimated in earlier mapping exercises. Other relevant research papers further explored the subject matter, with one suggesting the use of an open digital mapping methodology in order to combine open data, field observations, and factors already known to affect peat thickness (Rudiyanto et al. 2018).

Findings by Vernimmen et al. (2020) showcasing the peat thickness measurement in selected areas of Bengkalis and Kubu Raya.

Findings by Vernimmen et al. (2020) showcasing the peat thickness measurement in selected areas of Bengkalis and Kubu Raya.

In summary, most of the recent literature on peat offer suggestions on improvements to existing research efforts and current peat management framework. Overall, regardless of the topic of the paper, the common conclusion is that much more still needs to be done when it comes to managing peat.

Trase: Yearbook 2020 Launch

On 2 July, Trase presented its Yearbook 2020, which aimed to address four key issues: 1) how is agricultural expansion linked to deforestation; 2) who is buying forest commodities and from where; 3) what are the greatest sources of deforestation risk in the supply chains of major commodity buyers; and 4) what is the coverage of zero-deforestation commitments and what impacts are they having.

During the launch, Trase presented the several interesting key findings:

  1. Focusing on the Amazon, Cerrado, and Chaco where deforestation, Trace researchers confirmed a direct correlation between expansion of cattle pastures and soy, with cattle pastures being the dominant causes of deforestation across all three aforementioned areas in 2018, i.e. 95% in Paraguay, 81% in Chaco, and 54% in Cerrado.

  2. Trase found that the market share of dominant trading companies is generally proportionate to their share of deforestation risk, although smaller traders can have disproportionate impacts as well.

  3. Coverage of zero-deforestation commitments is increasing, although significant gaps remain in certain industries. Companies with the highest risk exposure per tonne often lack commitments, and at the moment, there is still no clear difference in risk exposure between committed and non-committed companies.

Source: Trase (2020)

Source: Trase (2020)

SIIA Haze Outlook 2020: Climatic Conditions & Weather Forecasts

On 23 June, the Haze Outlook 2020, written by the Singapore Institute of International Affairs (SIIA) and Segi Enam Advisors, was released to the public. Essentially a risk assessment report on the transboundary haze incident within the ASEAN region for 2020, the report operated on a weather-peat-people framework and found that there is moderate risk of a severe transboundary haze incident this year.

With specific reference to weather, we gathered and analysed recent forecasts, meteorological indicators, and other weather-related risk factors for the year 2020. Overall, weather conditions for now appear favourable, particularly with regard to the El Niño–Southern Oscillation (ENSO) and Indian Ocean Dipole (IOD) phenomenons. While NOAA’s March outlook expects an exceptionally warm year, the indicators for ENSO and IOD are relatively neutral.

Climate events indicate that dryer-warmer conditions are muted for the time being.

Climate events indicate that dryer-warmer conditions are muted for the time being.

Over in Indonesia, the Meteorology, Climatology, and Geophysical Agency (BMKG) forecasts that 30% of regions entering the dry season in the next three months after May will be experiencing drier-than-usual weather conditions, including areas in North Sumatra, Riau, and West Kalimantan. The agency also warned of the possibility of an early dry season for Bali, Nusa Tenggara, West Jawa, and Central Jawa. Similarly, several plantation corporations operating in Indonesia have also voiced concerns about the dryness and high temperature expectations throughout the region.

BFM: Demand is the Real Issue

FireShot Capture 456 - BFM_ The Business Station - Podcast Morning Brief_ Demand Is The Real_ - www.bfm.my.png

Last week, our principal, Khor Yu Leng, was invited to speak on BFM on whether demand is the real problem in the palm oil sector amidst the Covid-19 pandemic, and if the restrictions on foreign workers will adversely impact the supply chain. Click on the following link to listen to the podcast: Demand is the Real Issue.

“The palm oil sector supply chain, what can be considered an essential service during the many phases of the movement control order was largely not impacted by Covid-19. We ask Khor Yu Leng whether demand is the real issue here and if the restriction on foreign labour will be a problem for Malaysia’s most important agricultural export.

Produced by: Dayana Mustak

Presented by: Wong Shou Ning, Khoo Hsu Chuang.”

SIIA Haze Outlook 2020

For the second annual edition of its Haze Outlook, the Singapore Institute of International Affairs (SIIA) teamed up with Segi Enam Advisors to provide a risk assessment report on the transboundary haze incident within the ASEAN region for the year 2020. Officially published last Thursday, our findings indicate a moderate risk of a severe transboundary haze incident in 2020. While weather outlook remains favourable, the Covid-19 pandemic has raised justifiable concerns about Indonesia's preparedness to deal with the fires and haze.

As co-authors, Segi Enam Advisors collated and examined qualitative and quantitative data from relevant literature published throughout the recent years. Working on a weather-peat-people framework, we looked at the latest academic research on, inter alia, peatland management and fire prevention as well policies and efforts with regard to the same. We also collected and analysed weather data, i.e. temperature and rainfall conditions, to complete the overall risk assessment of a haze for the year 2020.

Segi Enam also provided geospatial analysis of two key areas of fires incidences in the Riau and Central Kalimantan regions (please refer to Appendix A of the report). The two case studies give a geographical overview of the aforementioned areas as well as an analysis of hotspot locations detected in 2015 and 2019.

Antimicrobial Resistance: Part #4 - Antimicrobials in Plants

Perhaps a more optimistic start to our antimicrobial resistance (AMR) series: the annual amount of antibiotics used for treating crops is relatively low compared to the amount used in livestock production, comprising only 0.36% of total antibiotic consumption in the agricultural industry (Smalla and Tiedje, 2014). This is because there are only a relatively small amount of bacterial diseases so difficult to control, antibiotics are required to compensate for the crops’ lack of natural resistance to these diseases (FAO, 2018a; McManus, 2014). It is due to this reason that antibiotic use on crops fell out of the limelight when it comes to major efforts to reduce its usage in the agri-food industry.

Nevertheless, there remain some areas of concern. In pre-harvests, antibiotics are largely administered to plants in the form of fine mists (Zhang et al., 2017). Indirect application could also still happen via the use of soil, organic fertiliser, e.g. manure, and irrigation water already contaminated with AMR bacteria (FAO, 2018b). Unfortunately, the full effects of how antibiotics interact through these methods are complex and still relatively understudied. Antibiotics applied via the usual air blast sprays to trees planted in an orchard system, for example, were found to not always reach their intended targets since sprays may drift or become lost by runoff due to external events such as rain, thereby complicating studies (Raman et al., 2020).

Pathways of antimicrobial agents (AMA) and AMR dissemination. Movement of AMA or AMR is indicated by the overlapping circles and arrows, while colours denote group reservoirs. Stars represent AMR genes and bacteria hotspots. Asterisks represent poss…

Pathways of antimicrobial agents (AMA) and AMR dissemination. Movement of AMA or AMR is indicated by the overlapping circles and arrows, while colours denote group reservoirs. Stars represent AMR genes and bacteria hotspots. Asterisks represent possible AMR genes and bacteria hotspots (Thanner, Drissner, and Walsh, 2016).

Data on antibiotics in the context of plant agriculture is scarce, even more so than its aquaculture counterpart. Global estimates on the antibiotic use is virtually non-existent, and the full effects of said use, including how consuming crops contributes to the spread of antibiotic AMR genes, has yet to be fully understood. Fortunately, there is gradually mounting evidence of the potentially adverse effects on public health and the environment: vegetables grown conventionally and organically to be consumed raw facilitate the spread of AMR genes (van Hoek et al., 2015); AMR bacteria transmitted from plants to humans could asymptomatically “colonise” the intestines for an extended period of time before being discharged from the body (Maeusli et al., 2020); already contaminated crops grown as feed introduces AMR genes into the animals fed with these crops, thus accelerating the spread of AMR genes into the food chain (Marshall and Levy, 2011).

This is the fourth article of a multi-part series on the topic of antimicrobial use in the agri-food sector by Khor Reports. Read the previous posts here: Antimicrobial Resistance: Part #1 - The General Gist; Antimicrobial Resistance: Part #2 - Antimicrobials in Livestock; Antimicrobial Resistance: Part #3 - Antimicrobials in Aquaculture.

Moo-re Carbon? Emissions from Dairy Giants Exceed Major Carbon Polluters

A recent study by the Institute for Agriculture & Trade Policy (IATP) has revealed interesting information: in 2017, 13 of the globe’s largest dairy corporations emitted more greenhouse gases (GHG) combined than BHP and ConocoPhillips, the two major carbon polluters of the world. The report stated that the total combined emissions released by big names in dairy industry, such as Group Lactalis, Saputo, Danone, and Amul, increased by 11% between 2015 and 2017. What is worrying is that while there is evidence to suggest that the food system is responsible for about 37% of global emissions, there is little public attention on the meat and dairy industry, unlike the mounting scrutiny received by the fossil fuel corporations.

Source: Sharma (2020)

Source: Sharma (2020)

Unsurprisingly, the meat and dairy industry have denied these claims. The European Dairy Association (EDA) has called the findings “an insult… to any rational thinking”, arguing that six of the named 13 dairy companies were based in Europe and, as such, are “fully subscribed to the EU Green Deal with [a] shared ambition to make Europe the first climate neutral continent by 2050.”

The IATP study makes a good opportunity to revisit our post on the ASEAN Vegan Map, which shows online interest in the subject of veganism across Southeast Asia. The piece compliments our previous preliminary survey findings that suggest a rise of plant-based diets, particularly among young professionals.

Antimicrobial Resistance: Part #3 - Antimicrobials in Aquaculture

Next up on our antimicrobial resistance (AMR) series: antimicrobials in aquaculture. Similar to livestock production, antimicrobials are used in fish farms to treat and prevent diseases, and are commonly administered via water medication and medicated feed. While these methods do encourage the development of AMR, they are not its only source—the use of organic fertilisers, such as farm animal wastes, also contribute toward AMR, especially if the waste was from livestock already extensively fed with antimicrobial agents (Aly and Albutt, 2014).

Aquaculture production has surpassed wild catch since 2012, with an average person now consuming almost double the amount of seafood compared to the past 50 years (Ritchie, 2019).

Aquaculture production has surpassed wild catch since 2012, with an average person now consuming almost double the amount of seafood compared to the past 50 years (Ritchie, 2019).

More crucially, while the use of antibiotics in aquaculture remains the same as their livestock counterpart, the dosage administered in the former can be much higher proportionally compared to the latter (O’Neill, 2015). This, combined with the fact that antibiotics can remain within the aquatic environment for an extended period of time—there is evidence to suggest that 70 to 80% of antibiotics fed to fish are excreted into the water (Cabello et al., 2013; Burridge et al., 2010)—has led to experts dubbing aquaculture sites as “reservoirs” and “hotspots” for AMR genes (Van et al., 2020; Watts et al., 2017; Muziasari et al., 2016).

The situation is further aggravated by the rapidly growing practice of aquaculture itself—since the stress of industrial-scale farming compromises the fish’s immune system, it justifies the widespread use of antibiotics as a way to compensate for the fish’s increased vulnerability to infections and diseases (Meek, Vyas, and Piddock, 2015). A recent study between CIRAD and French National Research Institute for Development has also shown global warming may even promote the use of antibiotics, particularly in the low- and middle-income countries—warmer temperatures almost always result in higher mortality rates of fish, which could lead to an increased use of antibiotics (Reverter et al., 2020).

Unsurprisingly, the development of AMR in aquaculture production (as with any other agri-food industries where antibiotics are used) adversely has devastating affects on the environment and public health, typically in the form of superbugs, i.e. bacteria that should have been killed by antibiotics, but instead evolved to become stronger. Yet, overall data on the amount of antibiotics used in aquaculture and how much of it is absorbed into the aquatic surroundings is still far from satisfactory. Approximately 90% of global aquaculture production is carried out in countries where regulations on antimicrobial use are either lax or non-existent, resulting in data that varies greatly from nation to nation (Watts et al., 2017).

The figure above depicts the global multi-antibiotic resistance (MAR) index calculated from aquaculture-derived bacteria. An MAR index of 0.2 indicates a high-risk of antibiotic contamination. The mean global MAR index is 0.25. 28 countries out of t…

The figure above depicts the global multi-antibiotic resistance (MAR) index calculated from aquaculture-derived bacteria. An MAR index of 0.2 indicates a high-risk of antibiotic contamination. The mean global MAR index is 0.25. 28 countries out of the 40 selected for study displayed an index of higher than 0.2 (Reverter et al., 2020).

Nonetheless, there is evidence to suggest that antibiotic use is dependant on a country’s regulations and legislation on the same. For example, in Chile, where there have been resistance from some aquaculture companies against the government’s attempts to regulate antibiotic use, approximately 300 tonnes of antibiotics is used every year in the aquaculture industry. As a comparison, Norway imposed stringent legislation on antibiotic use in aquaculture (and largely replaced with more sustainable alternatives such as vaccines) and now relies on only one tonne per annum (FAO, accessed June 2020).

There is some sliver of hope, however. Some companies are beginning to respond to the growing concern on the impacts of antibiotic use. Chilean-based Marine Harvest, one the largest marine farming enterprise in the world, has pledged to slash its antibiotic use from 450gm per metric tonne of harvested salmon to 150gm per metric tonne. Lerøy Seafood Group from Norway has stopped using antibiotics in their fish farms since 2017 (although it should be noted that as mentioned before, Norway as a whole had already enforced strict monitoring of the antibiotics use, which included measures such as a traceability system that tracks the health and harvesting details of fish products). Nevertheless, experts widely agree that much more needs to be done.

This is the third article of a multi-part series on the topic of antimicrobial use in the agri-food sector by Khor Reports. Read the previous posts here: Antimicrobial Resistance: Part #1 - The General Gist; Antimicrobial Resistance: Part #2 - Antimicrobials in Livestock.


In separate news, a newly found cluster of coronavirus cases from the Xinfadi meat market in Beijing recently triggered a consumer panic after traces of the virus were found on a chopping board used to cut up imported salmon. The discovery prompted China to temporarily stop salmon imports into the country as numerous eateries and supermarkets began pulling foreign fish and meat products from their menus and shelves.

In response to this incident, the Norwegian Food Safety Authority and Norwegian Seafood Council stressed that there are no cases of coronavirus infections spreading via contaminated food. This claim was later backed by the China Center for Disease Control and Prevention, who further clarified that there is currently no evidence to suggest that salmon itself could host the said virus.