Wilmar International: Suppliers and Deforestation

Various NGOs have investigated and challenged the inclusion of mill suppliers who deforest; and there is controversy over suspending or engaging with errant suppliers. Wilmar says to avoid suspension contributing to “a growing leakage market” or negatively impacting oil palm smallholders, post-suspension engagement is crucial... to assist suppliers in bringing their operations to compliance.” Its “Suspend then Engage” grievance approach took effect in January 2019.

For human rights complaints, a supplier must take steps “to address the grievance with regard to the development and implementation of the time bound action plan which includes corrective actions, remediation actions and actions to demonstrate systemic and group-wide change.”

Under its “Re-engagement Protocol”, Wilmar may resume sourcing from suppliers suspended for deforestation and/or peatland development if re-entry criteria (specifying minimum terms and conditions) are met. An example is the so-called GAMA Group, apparently consolidated under KPN Plantation (and associated with Martua Sitorus, a Wilmar founder). Its recovery plan interventions centers on "social recovery, specifically supporting the development of hutan desa (community social forestry) programmes in the area to support community empowerment and improving livelihoods. The recovery plans also consider landscape recovery where feasible, such as creating wildlife corridors."

According to ‘Wilmar’s Supplier Monitoring Programme’ of Sep 2018 (the latest report, accessed 10 Dec 2020):

1. Suppliers report their current compliance to Wilmar’s NDPE policy via Its online self-reporting system and there is follow-up verification for 10% of mills. The verification programme included satellite monitoring of 11 million hectares and 500 mills by Sep 2018.

2. “16 suppliers (were suspended) at a group level, as they failed to convincingly improve their policies and/or actions, supply chain exclusion at a group level has been imposed,” and for Indonesia a million tonnes worth of supply has been suspended while about 1.2 million tonnes was under ongoing engagement. The total under complaint (suspension and engagement status) was 3 million tonnes of supply (including Malaysia and rest of the world). This tonnage under complaint is about 12% of Wilmar’s 25 million annual tonnes of palm products handled in 2019.  The Indonesia complaints seen by Wilmar relate to about 5% of Indonesia’s palm oil production of about 43 million tonnes per year; and they likely appear as complaints for other Indonesia-based trader-processors too. 

Editor’s note: Interestingly, Wilmar exited from the High Carbon Stock Approach in April 2020, citing governance and financial issues. The company, however, insisted that it “firmly committed to the adoption and implementation of the HCSA toolkit”. Wilmar’s press statement on its exit can be read here.

Aquaculture: Common Questions

What do tilapia, shrimp and cockles have in common?

They are all key products of the aquaculture industry in Malaysia (FAO, 2020a). But what exactly is aquaculture? Aquaculture is farming, but with fish or other delectable aquatic organisms intended for human consumption. This practice has become increasingly common globally, and now makes up about 54% of the world’s fishery production (FAO, 2018). In Malaysia, aquaculture makes up a substantial 21% of our fishery production (DOSM, 2019). When it comes to aquaculture here, it is commonly split into two types; freshwater and brackishwater aquaculture. Freshwater aquaculture, as the name suggests, is the breeding and raising of aquatic animals such as tilapia, catfish and carp in freshwater lakes, ponds, rivers or even reservoirs for economic purposes (Li and Liu, 2019). Brackishwater aquaculture, on the other hand, is the dominant aquaculture in Malaysia, making up about 70% of our aquaculture production, where it is the breeding of mainly bivalve molluscs like cockles and clams in waters that have a salinity fluctuating between 0.5% to full strength salinity (FAO, 2020b). These conditions can be commonly found in estuaries, bays and lagoons.

Now that we have the introduction out of the way, lets address some common questions people might have when it comes to aquaculture.

Is wild caught fish really better than farmed fish?

This is a question that stems from what I have heard come up countless times in conversations about wild vs farmed fish among family and friends, as well as in studies (Verbeke et al., 2007). There is this assumption by the general public that wild fish seem to have the edge over farmed fish when it comes to quality. Well luckily for you, I'm here to do the research and answer this question once and for all.

The answer: There really isn’t much difference from a nutritional standpoint. In fact, farmed fish has the potential to be more beneficial than wild fish. Some studies have shown that because farmed fish can be controlled in terms of diet and water quality, this could result in fish with lower levels of potentially toxic heavy metals, compared to their wild counterparts (Cahu et al, 2004). While it is true that farmed fish in some cases can have higher fat content than wild fish, this can be easily tweaked through the composition of the fish feed used, as well as the size of the fish enclosures (Nettleton and Exler, 1992; Cahu et al, 2004). 

But what about the antibiotics?

Another common question involving farmed fish is the fear of antibiotics and other artificial substances that may be used on farmed fish affecting us human beings. 

The answer: Yes, this is a potential issue with some farmed fish. The issue stems from the risk of antibiotic resistance. For those who aren’t familiar with this term, antibiotic resistance is when bacteria start to develop resistances to the antibiotics used to destroy them. Antibiotics are commonly used in aquaculture to fight bacterial infections and keep the fish healthy. While fine to use moderately, antibiotics are sometimes overused by the farmers, which then leads to antibiotic resistance issues. Residues of the antibiotics tend to stay in the fish when overused, which is then passed on to us humans when we then eat the fish (Miranda et al., 2018). This could then result in bacteria in our body developing resistances to antibiotics. It is important to note however, that this is still a relatively new field of research. There are limited studies done on the long term effects of antibiotic residues, as well as just how impactful it is on human health (Chen et al., 2020). It can only get better over the next few decades, as it will take time for more scientific studies to be carried out to determine the right doses of antibiotics and alternative methods to combating bacterial infection in aquaculture (Chen et al., 2020).

Does aquaculture hurt the fish or have any negative effects regarding welfare?

Where are the animal rights activists at? This is also a pretty common question when it comes to aquaculture, where people question whether the welfare of the fish is taken care of.

The answer: It would probably be no surprise to you that aquaculture does have negative effects on fish welfare, given that they are commonly reared in enclosures that are smaller than the size of an ocean or river. Generally, issues such as the handling and manipulation of fish, malformation and inducing reproduction all commonly affect aquaculture fish (Saraiva et al., 2019). However, most studies on fish welfare are usually limited to several popular aquaculture species, and a lot more research needs to be done in order to better understand both the physiological and behavioural measures we have to account for to maintain good fish welfare in the farms (Ashley, 2007).

Why support aquaculture?

So you’re telling me that I should buy farmed fish and support aquaculture even when you have just pointed out some of its issues?

Well, like any food source, there will always be pros and cons. I could also write an article on how wild caught fish could potentially be just as harmful, if not more harmful to our health (maybe I will). Arguably, the welfare of wild fish isn’t doing so well either, with severe overfishing plaguing the high seas. The reasons why aquaculture has been painted in this slightly negative light mainly stem from media portrayal, as well as a lack of knowledge among the public on aquaculture (Froehlich et al., 2017). Furthermore, a relatively new technique of procuring fish, when compared to the practice of catching wild fish for thousands of years is bound to have some initial wrinkles that need to be ironed out. Only through continuing to support the transition to more aquaculture based fish production can we move forwards. 

Let’s not forget the main reason aquaculture is being pushed in the first place. Overfishing has left global wild fish stocks dangerously low, and we need alternative food supplies. This is not an environmentalist push to protect wild fish stocks for the sake of preserving nature. The world population is growing every day. With about three billion people in communities around the world reliant on seafood as the main source of food, dwindling fish stocks are a pressing food security issue (WWF, 2020). Aquaculture is looking to be the perfect solution to the problem, we just need to refine it.

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).

I hope this article has given you some insight into the aquaculture scene, and gotten you hooked! Stay tuned for the next article on the environmental impacts of aquaculture, and how they compare to the impacts of conventional fishing.

By Robin GOON, Segi Enam intern, 10 Dec 2020 | LinkedIn

Edited by Nadirah SHARIF

Meat Alternatives in China: Beyond Pork vs Tofu?

Last Wednesday, Beyond Meat introduced a new product to the Chinese markets: meatless minced pork. Dubbed the "Beyond Pork”, the plant-based alternative is available at five restaurants in Shanghai for a limited time, with Beyond Meat China general manager Candy Chan stating that it is the company’s “first plant-based meat product created specifically for the Chinese market”.

Source: Fickling, 2020

This is not, however, the first time Chinese consumers are offered pork substitutes. Companies such as OmniFoods and Whole Perfect Food have already been offering consumers their take on plant-based pork products before the official introduction of Beyond Pork in China. And while Beyond Pork will continue to compete with more rival products as the meatless industry continues to expand, it may have a much more contender with an existing dominant role in Chinese cuisine since the ancient times: tofu. Used extensively in imitation poultry dishes, tofu comprise 1/5 of a typical Shanghainese’s diet; this trend, according to Bloomberg Opinion columnist David Fickling, remains unchanged since several decades ago. While the introduction of the Beyond Pork is welcome, it may be interesting to see how it fares in a country that has already had its own meat alternative hundreds of years ago.

Source: Fickling, 2020

Hotpot, Instant Noodles and, Cooking Oil

Has anyone tried Self heating hot pot instant noodles? This must be one of the most creative (junk?) processed foods. I was eyeing the latest instant ramen ratings as I came across a new flavour at the supermarket recently and finally got a chance to try it - a fish broth version by My Kuali (one of the top rated brands by ramen raters). A friend mentioned the hot pot option, which has yet to reach my local supermarket (but apparently you can get it on Amazon).

In Southeast Asia, despite the warm weather, it is cooler at year end it may be time to consider a real hot pot too. Traditionally in Malaysia, there is steamboat (often in outdoor eating settings) and there is "lok lok" a street food that you get off a food truck. China hot pot versions have set up too now (often in chilly airconditioned restaurant setting).

I hear from the used cooking oil (UCO) people that there's a lot of waste oil to collect from hot pot restaurants. The industrial deep fryers of instant noodles and more are having a fine time selling their used oil into biofuels - specifically palm oil-based biodiesel.

Yu Leng KHOR, 20 Nov 2020

PS. A safety warning to go alongside self heating instant noodles, in an article from China in 2017 (presumably when this product got popular there); and also consider #plasticwaste concerns.

Check out Self-Heating Instant Hot Pot videos.

A Game of Thrones: US Post Elections, 17 Nov 2020

The 2020 US elections are finally over, although the horizon seems to promise yet more drama up until Joe Biden’s inauguration early next year. As the world settles into the results, our PolTracker team members decided to give their thoughts on the matter. Click here to read more.

MPOC: Turning Conflict into Coexistence

Palm oil is the lifeline of Malaysia’s economy. It is what puts the food on the table for many Malaysians, living in rural areas. Palm oil is versatile in its usage and it is found in many of the daily products we consume including confectioneries, biscuits, cosmetics, and detergents. However, the expansion of the palm oil industry, especially in Southeast Asia, has come under scrutiny because of its link with degradation of tropical forests as land is cleared for the development of plantations. It has been questioned on its contribution to climate change among other predicaments. 

Therefore, it should come as no surprise that there is negative perception of palm oil in the European Union, Malaysia’s third largest importer of palm oil. Brussels is set to enforce a biofuel restriction, to take effect in 2020. This relates to the EU's renewable transport target, which uses palm oil as one of the feedstocks for biofuel, and seeks to remove deforestation impact. Unfortunately, there is worry about the livelihood of smallholders in the rural areas in Malaysia reliant on the export of palm oil. Some experts have also pointed out that the EU restriction (often confusing cited as a ban) may lead to the expanded cultivation of other (less efficient) vegetable oils. This could harm the environment in a manner comparable to worries about the cultivation of palm oil, if not, worse.

The Malaysian government, in an effort to bolster its palm oil economy (amid this uncertainty), has launched (in phases) the B20 biodiesel programme. It considers this a green fuel programme, and blends 20% palm methyl esters and 80% petroleum (up from the previous B7 blend), thus “increasing the country's palm oil consumption for domestic biodiesel industry rise to about 1.3 million tonnes annually”. The expanded local demand is meant to safeguard the sector and its stakeholders, especially its smallholders.

The cultivation of palm oil is going more sustainable, with research on best practices in the management of its estates and smallholdings, but misunderstandings still arise on conservation efforts - for the wildlife displaced when developing the forest to cultivate palm oil. On its website, The Malaysian Palm Oil Council (MPOC) appears to record palm oil’s (its) wildlife support activities under its Science Of Malaysian Palm Oil section. It initiated the Malaysian Palm Oil Wildlife Conservation Fund (MPOWCF) in 2006 (with a 1:1 top up offer for independent donor funds) to manage the various conservation projects in protecting and rescuing the animals that lost their homes to palm oil plantations. Its website (accessed 5th Nov 2020) lists 10 projects, but details about donor funds, project spending and impacts are not included.

The latest project is the Sabah Wildlife Conservation Colloquium 2012, and there appear to be two ongoing projects:

1. The Jungle Patrol Unit with Sabah Forestry Department to safeguard wildlife and deter poaching, 2007-ongoing; and

2. The Wildlife Rescue Centre with Sabah Wildlife Dept/ShangriLa Rasa Ria for Rescue & translocation of endangered wildlife found in oil palm landscapes, 2010-ongoing.

However, the latest reported Malaysia palm oil efforts, which is not listed on the MPOC’s wildlife page, includes the One Million Forestry Species Tree Planting Project in the Ulu Segama Malua Forest Reserve located in Lahad Datu, Sabah, a project announced in mid-2019.

Palm oil impacts on biodiversity by IUCN (2018)

In other news, the rise of green diesel in Indonesia, i.e. biofuel made entirely from palm oil worries, are not without its concerns; higher demand for green diesel means higher demand for palm oil, which for some experts translates to more environmental problems including loss of biodiversity and forest areas.

Additionally, then-Primary Industries Minister Teresa Kok also stated that the additional RM1 cess per tonne of palm oil produced would be collected and funnelled into a fund for green initiatives, which will then be utilised for wildlife conservation purposes and green initiatives, particularly for forest replanting.

MPOC has hosted talks, conferences and seminars about the sustainability of palm oil. Recently, it held a webinar on the 12th August 2020 in conjunction with World Elephant’s Day, with an overarching theme of ‘Human and Wildlife Co-existence: Turning Conflict into Co-existence’ focusing on human-wildlife coexistence within palm oil plantations and the conservation efforts in protecting the animals who have lost their homes. The panels consisted of Mr. Erik Meijaard (Chair of the IUCN Palm Oil Task Force), Mr. Vivek Menon (CEO of Wildlife Trust India), Dr. Senthilvel Nathan (Sabah Wildlife Department), and Mr. Izham Mustaffa (FELDA).

Aerial view of the Kinabatangan area in Sabah showing oil palm and partial river corridors. Full forest connectivity is crucial to allow wildlife to move through these multifunctional landscapes. Photo and caption credit by Marc Ancrenaz/Mongabay.

Mr. Meijaard discussed biodiversity conservation in oil palm landscapes and commented that it could be better. He explained that palm oil concession companies should set aside 60% of its landholdings for conservation efforts as done by PT KAL (in Indonesia); interestingly, he talked about conservation for orangutans as they are more likely to inhabit palm oil plantations, thereby substantiating the need for a conservation area to allow a ‘cohabitation’. He also questioned the effectiveness of translocating orangutans which involves rescuing, rehabilitating and releasing them back into the wild. What is needed is an effective biodiversity management.

Mr. Vivek Menon and Dr. Senthilvel Nathan approached human-wildlife coexistence, specifically between humans and elephants. Mr. Menon has put forth several strategies for coexistence between humans and elephants, including: (1) addressing habitat shrinkage and fragmentation by securing elephant corridors; (2) addressing and reducing human-elephant conflict through efforts such as voluntary relocation of families and smart infrastructure; and (3) raising the people’s tolerance for elephants.

Dr. Senthilvel Nathan spoke on the human-elephant conflict in Sabah. He noted that elephant deaths in Sabah are attributed to mainly hunting (ivory), accidental deaths (elephants falling into mud pools), and diseases (tuberculosis). There are wildlife management issues, lack of resources and poor coordination between NGOs, industry stakeholders, corporations, and the government; and a lack of general awareness, and poor understanding of several key scientific facts. He pointed to the Sabah State Bornean Elephant Action Plan (2020-2029) that was planned by the Sabah State government through the Elephant Task Force.

Bornean elephants feeding in an oil palm plantation. Photo and caption credit: Nurzahafarina Othman/Mongabay.

The last speaker, Mr. Izham Mustaffa spoke of human-wildlife coexistence from the industry’s perspective. He explained the effects of human-wildlife conflicts: plantations are damaged, palm oil trees were mostly uprooted or broken down. He referred to elephants wandering into the plantations looking for food, leading to standoffs between humans and elephants. The preventive actions taken by FELDA include electric fencing at the borders and translocations to forest-reserves. Mr. Izham suggested a few ways to coexist between humans and elephants: (1) increase awareness among stakeholders and settlers; (2) enriching wildlife habitat; (3) increase food availability in the forest reserve; and (4) establishment of wildlife corridors.

In a nutshell, the webinar was mainly about the conservation of biodiversity in palm oil plantations, which would be possible if all relevant stakeholders have a strong political and public willpower when managing palm oil plantations.

For more on the arguments put forth by the panelists about the importance of biodiversity conservation, just click here.

By Cyrene PERERA, Segi Enam intern, 17 Nov 2020 | LinkedIn

Edited by KHOR Yu Leng and Nadirah SHARIF

Smallholders in the Palm Oil Sector

The importance of smallholders in the palm oil sector is often misunderstood or overlooked, especially when it comes to their role in improving the sustainability of the industry. Sustainability criteria, including the ESG standards, are used by palm oil companies for complying to international requirements and increasing economic benefits, but the reported scores are rarely a reflection of the local reality (Moohan-Sidhu, 2018; Thoumi, 2018).

Smallholders, as defined by the RSPO, are farmers growing palm in small plantations with an area below 50 ha where the family provides most of the labor. These family farms manage 40% of the global palm oil production area, a percentage which will continue to expand due to companies facing increasing barriers for opening new large tracts of land (Jeezer et al., 2019). Independent smallholders, as opposed to those under a scheme, are the most neglected in the sector. They have more difficulty accessing financial resources and produce around 20% lower yields than company plantations (Jelsma et al., 2019). Independent farmers represent a large portion of all smallholder area—for example, in Indonesia more than half of these area, 2.54 million ha, corresponds to independent smallholders. 

A Lubuk Beringin villager, Rahimah, 70, harvests palm nuts for palm oil on her agroforestry farm at Lubuk Beringin village in Jambi province, Indonesia. Caption from: Hans Nicholas Jong/Mongabay. Photo by: Tri Saputro/CIFOR/Flickr.

Including smallholders in the palm oil supply chain and addressing their state of exclusion is crucial for attaining environmental and social results. Despite some attempts to promote the adoption of standards among small producers only a low number of independent smallholders have been certified (Sagar et al. 2019). In Indonesia, only 1% hold a RSPO or ISPO certification (WRI, 2018). Other efforts led by palm oil companies which claim sustainability objectives, such as the Indonesia Palm Oil Development for Smallholders program implemented by Musim Mas, are focused on improving the productivity and traceability of smallholders along the supply chain. However, these ultimately end up benefitting companies but having little environmental impact. These initiatives do not show clear results in terms of avoided deforestation nor accountability for the distribution of premia returns to local communities.

Including smallholders and reducing the barriers they face are crucial for attaining credible and measurable sustainability results at a significant scale. While increasing the equity of the palm oil supply chain will create its own set of challenges, such addressing the complex traceability, accessibility, and layered sourcing system, ultimately it is worth the effort.

By Sandra CHIRI, 16 Nov 2020

Faith Leaders: Evangelicals, Trump, and the 2020 US Elections

Faith leaders and voters are storming heaven with prayers as the US presidential election remains inconclusive with several states having yet to tabulate all votes. Trump’s special advisor, Paula White-Cain, has been in the forefront leading prayers for the president in a video that has since gone viral.

Khor Report’s PolTracker has gathered social media data on key faith leaders in the US. Read our results here.

The Final Countdown: The Eve of the 2020 US Elections

It’s time for the 2020 US elections, and social media is again playing its huge part as it did four years ago. While the PolTracker team has extracted data on Twitter mentions and sentiments on the current Presidential and Vice Presidential candidates, being halfway across the world makes analysing said data a bit more difficult. Instead, we had the team give their personal thoughts. Click here to read more.

The King and I? The 2020 Bangkok Protests

Thailand has been witnessing a series of pro-democracy demonstrations since July. These protests attracted lots of support from the young people and urban elites, but what makes these protests notable is that it tackles the issue of the monarchy head on for the first time. This is reflected in Thai social media, where a surprisingly audacious hashtag about the king had been used by over two million Twitter users.

Naturally, Khor Reports’ PolTracker team analysed how several selected hashtags are trending on Thai Twitter. Head over here to read our results of this analysis.