FILIÈRE OLÉAGINEUSES évolution des politiques et des mesures sectorielles

Recuei l annuel

OILCROPS COMPLEX policy changes and industry measures

Annual compendium

2018

SECTOR OLEAGINOSAS cambios de políticas y de medidas del sector industrial

Compendio anual

Trade and Markets Division (EST)Division des produits et échanges (EST)

Dirección de Comercio y Mercados (EST)

SECTOR OLEAGINOSAS cambios de políticas y de medidas del sector industrial

OILCROPS COMPLEX policy changes and industry measures

FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS

ORGANISATION DES NATIONS UNIES POUR L’ ALIMENTATION ET L’AGRICULTURE

ORGANIZACIÓN DE LAS NACIONES UNIDAS PARA L’ AGRICULTURA Y L’ ALIMENTACIÓN

Rome/Roma, 2019

Trade and Markets Division (EST)Division des produits et échanges (EST)

Dirección de Comercio y Mercados (EST)

SECTOR OLEAGINOSAS cambios de políticas y de medidas del sector industrial

Compendio anual — 2018

FILIÈRE OLÉAGINEUSES évolution des politiques et des mesures sectorielles

Recuei l annuel — 2018

OILCROPS COMPLEX policy changes and industry measures

Annual compendium — 2018

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Contents

Table de matières

Índice

Oilcrops complex: Policy changes and industry measures - Annual compendium 2018 Filière oléagineuses: Évolution des politiques et des mesures sectorielles - Recueil annuel 2018

Sector oleaginosas: Cambios de políticas y de medidas del sector industrial - Compendio anual 2018

iii

©/P

exel

s

Introduction iv

Highlights v

Detailed news items: Table 1. Overview of domains covered 1

Table 2. Government policies implemented in 2018 2-38

Table 3. Industry measures and initiatives reported in 2018 39-54

Introduction viii

Faits saillants ix

Articles détaillés:

Tableau 1. Vue d'ensemble des domaines traités 1

Tableau 2. Politiques publiques mises en œuvre en 2018 2-38

Tableau 3. Mesures et initiatives de l'industrie recensées en 2018 39-54

Introducción xiii

Aspectos más destacados xiv

Noticias detalladas: Cuadro 1. Panorama de temas cubiertos 1

Cuadro 2. Políticas gubernamentales aplicadas en 2018 2-38

Cuadro 3. Medidas e iniciativas del sector industrial en 2018 39-54

iv Oilcrops complex: Policy changes and industry measures - Annual Compendium 2018

Introduction

The purpose of this compendium is to offer, in a single document, an overview of salient policy changes and related private sector measures concerning global and national markets for oilseed, oils/fats and meals in a particular year – in this case 2018.

The compendium reproduces, in tabular form, all the policy and industry news items published throughout 2018 in the FAO Oilcrops Monthly Price and Policy Update (MPPU). The main purpose is to facilitate the work of policy makers, market experts, analysts and other stakeholders by providing a short, concise overview of policy developments relevant to the oilcrops industry at the global, regional and national level.

Although every care has been taken to cover the most salient and relevant developments, the list of items presented is not exhaustive. Furthermore, drawing on a variety of sources, the accounts provided concentrate on key facts, refraining from in-depth analytical impact assessments.

The news items are presented in two major groups: 1) policy changes implemented (or under consideration) by national governments; and 2) voluntary industry initiatives, which include measures taken by private companies, sector associations, civil society groups and research and financial institutions.

In the tables, national policy changes are grouped by policy domains and, thereunder, by country (in alphabetical order), including reference to the month of implementation and to the product concerned. Industry measures, on the other hand, are presented by topic and, thereunder, in chronological order, with indication of the concerned country.

Acknowledgements: This report has been compiled by the Oilseeds Desk of the Trade and Markets Division (EST) under the lead of P. Thoenes and with the assistance of D. Yang and M. Milo. Support from E. Vecchione who formatted this report is gratefully acknowledged.

©/Flickr Ann Berlin

Oilcrops complex: Policy changes and industry measures - Annual Compendium 2018 v

Farmers support: In 2018, China expanded its support to soybean growers while trimming maize production subsidies, reflecting both continued efforts to lower the country’s dependence on imported soybeans and ongoing reforms to scale back the nation’s grain reserve system. As for the Government’s sales of soybeans, soyoil and rapeseed oil from public reserves, volumes offered at auctions contracted compared to past years, in line with past decisions to phase out public procurement of oilcrops. In India, oilseeds and pulses – i.e. crops characterized by marked domestic supply deficits – received increased attention by policy makers who approved higher than customary increases in minimum support prices and initiated reforms in the country’s procurement system in a bid to shield producers from depressed market prices. In Brazil, the customary subsidies for farm loans, marketing support programmes and crop insurance schemes were renewed, while, in the United States of America (United States), a new Farm Bill covering the period 2019–2023 was adopted in December 2018. The Bill extended the various existing farm safety net schemes, while introducing small changes to enhance the effectiveness of these support tools. Furthermore, in the fall of 2018, US farmers impacted by China’s introduction of retaliatory tariffs on selected US imports, notably soybeans, were granted compensatory payments. In the European Union (EU) and Australia, relief payments were authorized for farmers hit by extreme drought. In Mexico, the public procurement scheme for oilseeds remained in place, although its scope was reduced compared to previous years; conversely, oilseed growers benefited from higher income support payments.

Sector development: Numerous countries, especially developing nations in the Asia-Pacific region and Africa, continued to implement a variety of sector development measures, mainly pursuing the following long-term objectives: i) reducing the dependence on imports; ii) raising export earnings; iii) fostering local value addition; and iv) promoting more sustainable and resilient production methods. Indonesia, for example, saw the launch of an ambitious replanting scheme for oil palm smallholders. The nationwide, multi-year scheme is aimed at fostering output growth by boosting productivity levels, as opposed to environmentally controversial area expansion. Among developed nations, the EU renewed its commitment to promote the cultivation of protein crops with a view to reduce the bloc’s reliance on imported genetically modified (GM)-soybean, while Canada continued to support the development of its export-oriented rapeseed industry.

Pest control measures: The approval of herbicides and norms regarding their use remained under the scrutiny of policy makers in several countries, reflecting persistent concern about potential environmental and health risks. In the United States, the use of Dicamba, one of the herbicides widely applied in soybean cultivation, was reauthorized, tied to a number of restrictions. As for Glyphosate, a US court fined a manufacturer for failing to warn users about the product’s cancer risks, whereas in Brazil, a recently imposed temporary utilization ban was rescinded to safeguard national economic interests. Meanwhile, Canada and the EU further restricted the use of neonicotinoids. A number of EU member states also launched joint programmes for the prevention and control of a bacterial disease affecting olive trees, while a group of African nations joined forces to combat aflatoxin contamination.

Biofuel policies: Higher mandatory consumption targets for biodiesel were implemented or scheduled for ensuing years in a number countries (i.e. Argentina, Brazil, Colombia, Indonesia, the Republic of Korea, Malaysia, Thailand and the United States), triggered in part by the narrowing price gap between vegetable and mineral oils, which made biodiesel more competitive. Besides contributing to environmental objectives, higher national targets were also aimed at boosting the uptake of locally produced vegetable oils, thereby reducing domestic supply pressure and stabilizing prices. A case in point is Indonesia, where the scope of biodiesel subsidies was expanded and mandatory biodiesel use was extended to other sectors – with a view to foster domestic palm oil uptake. Argentina, where biodiesel production remained mostly export oriented, raised its export tax on the fuel in a bid to allay trade partners’ concerns over the alleged subsidization of the country’s biodiesel industry. In the United States, lawmakers retroactively extended the country’s biodiesel tax credit until December 2017, but did not deliberate on its renewal for 2018. India adopted ambitious long-term consumption goals for biodiesel, focusing on domestically produced raw materials, in particular used cooking oil. The EU issued a new bioenergy directive redefining biofuel consumption targets from 2020 onward. The new package combines caps for crop-based biofuels (including vegetable oil-based biodiesel) with ambitious targets for non-food biomass-based biofuels. It also determines that fuels deemed to bring about strong land use changes will need to be phased out entirely. Norway as well took steps towards banning all biofuels whose production entails high deforestation risks from the domestic biofuel market. The governments of Indonesia and Malaysia challenged these initiatives.

Highlights

GOVERNMENT POLICIES

In what follows, the most relevant policy changes and trends observed in 2018 are summarized below in bullet form. More detailed information is available in the ensuing tables (available in English only).

Trade policy measures: In 2018, a number of bilateral trade disputes affected global trade in oilcrops and derived products. Most importantly, the emergence of differences between the United States and China over their respective trade policies resulted in the implementation of new trade measures meant to balance overall trade between the two countries. New instruments included retaliatory import duties by China on US soybeans, which, given the size of China’s purchases, affected not only transactions between the two nations but also global trade patterns, with repercussions on the internal markets of various countries. Furthermore, long-lasting disputes over trade in vegetable oil-based biodiesel persisted in 2018, with i) exports from Argentina and Indonesia facing additional countervailing duties in the United States, and ii) the Philippines initiating anti-dumping investigations on palm oil imports from Indonesia and Malaysia.

Regarding import access, China – to mitigate the impact of its new tariffs on US soybeans – eased market access for oils and meals from other origins, while Turkey lowered (at least temporarily) its import duties on vegetable oil over concerns about domestic supply shortages. Conversely, a number of countries maintained or, as in the case of India, raised their import tariffs on oilcrops and derived products to protect local farmers, encourage domestic oilcrop production and support domestic processors and refiners.

On the export side, tumbling world prices of palm oil prompted Indonesia and Malaysia to suspend their palm oil export duties in a bid to stimulate international demand and curb domestic stocks. By contrast, Argentina raised its export taxes on oilseeds, oils and meals (thereby reversing earlier policies) as part of wider fiscal tightening policies. In the process, the country’s oilseed crush industry lost the protection it used to enjoy via tax differentials. Furthermore, Ukraine decided to phase out the tax refunds it traditionally granted to oilcrop exporters, while China stopped providing export tax rebates for soymeal in a bid to help meet the domestic demand for protein meals.

Moreover, a number of comprehensive trade agreements were under negotiation or became effective in 2018 – often involving important oilseed-exporting/importing nations, particularly concerning palm oil. As for bilateral oilcrop-specific trade initiatives, 2018 saw fewer initiatives than previous years.

Market regulation: Although featuring less prominently than in past years, a number of countries continued using a variety of instruments to regulate domestic markets. In China, the Government supported industry efforts to lower the prescribed protein content in compound animal feed, a move aimed at trimming the feed sector’s dependence on imported soymeal. Meanwhile, Senegal and Sri Lanka put in place market control measures aimed at stabilizing domestic retail prices of, respectively, groundnut oil and coconut products.

Food standards: The presence of harmful trans fats (which are generated when vegetable oils are hydrogenated to increase their stability) in food products continued to attract the attention of policy makers across the globe. While maximum permitted levels of trans fat were lowered in the EU and the Eurasian Economic Union, lawmakers in the United States and Thailand adopted legislation banning the production and sale of foods containing partially hydrogenated oils or fats. At the intergovernmental level, the WHO issued an action plan helping member countries to eliminate trans fats from their food supply chain. Furthermore, measures aimed at reducing people’s intake of saturated fat were under consideration in a number of countries, while steps to control aflatoxin contamination were taken in China. The year 2018 also saw fresh efforts to combat adulteration of edible oils, in particular in India.

GMO policies: While a number of new GM oilcrop varieties were formally approved in Argentina, Australia and Brazil, the concerned seed companies chose to postpone their commercial release, pending the outcome of regulatory reviews in all major import markets. Meanwhile, in Brazil, the revocation of seed patent rights for a popular GM soybean variety led to disputes over already collected royalty payments. The United States regulated the disclosure of GM material on food product labels, which will become mandatory in 2022. Highly processed ingredients from GM crops, including refined vegetable oil, were exempted from the new labelling requirement. The EU determined that crops obtained through genome-editing techniques fall under its GMO regulations, whereas the United States and China chose not to regulate the new plant breeding method.

Production sustainability: The debate on the need to move towards more sustainable methods of production intensified further in 2018, which, in addition to palm oil, also concerned soybeans. Amid intense public scrutiny, lawmakers in Indonesia, Malaysia and other palm oil producing countries stepped up efforts to promote more sustainable production practices. Indonesia approved a long-awaited, nation-wide moratorium on new oil palm plantation concessions. Moreover, new tools to monitor the conditions of the country’s forests were put in place, and funds for the protection and restoration of peatland areas were released. Furthermore, Indonesia and Malaysia both implemented measures to accelerate the adoption of mandatory national certification schemes for palm oil. Policies to encourage the adoption of sustainable production practices were also under consideration in Ecuador. As for soybeans, in Brazil’s Cerrado region, formal inquiries into soybean expansion involving the conversion of protected land were launched. Moreover, in France, a newly released action plan on climate change control included provisions for ending the importation of agricultural products that contribute to deforestation, with soybeans and palm oil featuring among the targeted crops.

Transport sector: In Brazil, the Government introduced minimum freight rates – a measure that raised costs of overland grain transportation considerably. On a positive note, official statistics indicated a growing reliance of traders in the Centre-West grain belt on the country’s recently developed northern export corridors, which helped decongesting the traditional, southbound routes. Elsewhere, Canada updated its national transportation legislation, with a view to ensuring farmers’ timely access to reliable rail services.

vi Oilcrops complex: Policy changes and industry measures - Annual Compendium 2018

INDUSTRY MEASURESSustainable production: In 2018, industry standards for sustainable palm oil production kept evolving amid close public scrutiny, as evidenced by several fresh private initiatives promoting the adoption of more responsible practices along the value chain. While several large palm oil companies set up projects to train smallholders on sustainable production practices and support their inclusion in formal certification schemes, numerous global agri-trade firms and food manufacturers renewed their undertakings towards “responsible” sourcing practices. In some instances, commitments to intensify supplier monitoring included pledges to publicly disclose the identity of suppliers. Furthermore, a number of companies ventured into satellite-based mapping tools designed to systematically trace the provenance of supplies, thus allowing buyers to verify whether individual suppliers adhered to their requirements. Related to this, in 2018, the number of cases where buyers suspended their relationship with suppliers failing to comply with their sustainability policies increased compared to earlier years.

In late 2018, the Roundtable on Sustainable Palm Oil (RSPO), a globally recognized, industry-led standard-setting/certification body for palm oil, adopted a revised, stricter set of standards, including a ban on the clearance of secondary forest and certain peatland areas. Furthermore, as RSPO took steps to strengthen the credibility of its certification, verification and grievance system, fresh cases of alleged conduct breach prompted both the voluntary withdrawal of some members and RSPO action against others. The certification body also decided to guarantee anonymity to individuals filing complaints against its members.

Despite these efforts, the extent to which certification actually contributed to furthering sustainable production practices remained subject to debate. A number of observers as well as industry officials pointed out that the prevalence of opaque corporate structures allowing companies to conceal ties with unsustainable forms of production continued to undermine the key purposes of certification.

Meanwhile, it was estimated that, similar to previous years, barely one-fifth of global palm oil production was certified as sustainable. More importantly, growth in global demand for certified oil remained modest, suggesting persistently low levels of consumer awareness, especially in developing countries. According to RSPO data, global supplies of certified palm oil continued to exceed actual sales, with roughly half of all certified produce not finding a buyer. To address these issues, stakeholders along the palm oil value chain forged new alliances to promote the consumption of certified palm oil in two major consuming countries, India and China (respectively the world’s largest and third largest importers of palm oil). In both countries, national platforms to raise the awareness of businesses and consumers about certified oil were set up in 2018.

Sustainability discussions received increased attention also in other sectors, especially with respect to international soybean trade. In this regard, Brazil, the world’s top soybean supplier, saw the launch of a multi-stakeholder alliance to help end soybean expansion entailing the conversion of native vegetation in the Cerrado, the region where roughly half of the country’s soybeans are grown. Participating companies pledged to dissociate their soybean value chains from recently forested areas and explored means to reward farmers who refrained from clearing areas that could otherwise be legally deforested. Moreover, under a “responsible” lending scheme set up by a private consortium, farmers committing to sustainable forms of production expansion were given access to preferential loans conditions.

International trade: Amid the evolving trade relations between the United States and China, Chinese state-controlled grain trading companies continued to expand their presence in overseas markets and transport infrastructure, especially in Brazil, thus contributing to limit the nation’s reliance on foreign traders. Meanwhile, palm oil exporters in Malaysia joined forces to foster their sales to markets other than the EU, driven by concerns over the likely introduction of EU-wide palm oil-specific import barriers. In Brazil, farmers associations in the country’s Centre-West grain belt joined ongoing public/private efforts to expand the country’s northern export routes. They signalled their willingness to co-finance the construction of a northbound railroad and established ties with the Panama Canal Authority to promote grain shipments from northern Brazil through the Canal to destinations in the Pacific Ocean.

Marketing practices: In the EU, two new instances of food retailers opting to remove palm oil from their own-brand food products were recorded. Moreover, a global, voluntary “palm oil-free” certification scheme (International Palm Oil Free Certification Accreditation Programme) gained regulatory approval in a number of countries. With regard to seed markets, a long-standing dispute between Argentine farmers and seed suppliers over royalty payments has been resolved. Concerning futures markets, various commodity exchanges introduced enhancements to their contracts for oilcrops and their by-products. Furthermore, global commodity traders reported the first, successful blockchain-based transactions.

Research & Development: Similar to previous years, in 2018, industry-led and academic research activities resulted in the development of i) new oilseed varieties offering higher performance or disease tolerance, and ii) oils and meals with improved functionality and/or beneficial nutritional and health profiles. Seed firms worldwide showed increased interest in genome-editing techniques (as opposed to traditional genetic modification methods), driven by both cost considerations and expected higher levels of consumer acceptance. Apart from new oilseed varieties, research activities also focused on the development of new oil/meal-based products, covering new food/feed uses as well as industrial applications. Novel products included food-grade protein from sunflower meal, de-oiled rapeseed lecithin, as well as plastics, polyesters, drugs and other industrial materials developed in part from waste material. Work on methods to detect adulteration in edible oils, notably olive oil, also continued to receive attention.

Biofuel measures: With regard to biofuels, industry efforts increasingly focused on the use of waste products, notably used cooking oil, as raw materials for biodiesel production – a development facilitated by technological advances in the processing of low-quality feedstock.

Oilcrops complex: Policy changes and industry measures - Annual Compendium 2018 vii

viii Filière oléagineuses: Évolution des politiques et des mesures sectorielles - Recueil annuel 2018

Introduction

L’objectif de ce recueil est de proposer, dans un document unique, une vue d’ensemble des principales évolutions en matière de politiques et des mesures connexes prises par le secteur privé, pertinentes pour les marchés mondiaux et nationaux des graines, des huiles et des farines d’oléagineux au cours d’une année donnée – dans ce cas en 2018.

Le recueil reproduit, sous forme de tableau, tous les articles concernant les politiques et les mesures sectorielles publiés par la FAO tout au long de 2018 dans son bulletin mensuel Oilcrops Monthly Price and Policy Update (MPPU). Son but principal est de faciliter le travail des décideurs, des experts du marché, des analystes et autres parties intéressées en leur fournissant un aperçu, bref et concis, de l’évolution des politiques pertinentes pour le secteur des cultures oléagineuses à l’échelle nationale, régionale et mondiale.

Même si toutes les précautions ont été prises pour couvrir les évolutions les plus saillantes et les plus pertinentes, la liste des éléments présentés n’est pas exhaustive. En outre, en s’appuyant sur diverses sources, le recueil se concentre sur les principaux faits et s’abstient d’évaluer en détail leur impact.

Les informations sont scindées en deux grands groupes: 1) évolutions des politiques mises en œuvre (ou à l’étude) par des gouvernements nationaux et 2) initiatives volontaires du secteur, y compris les mesures prises par des entreprises privées, des associations sectorielles, des groupes de la société civile et des institutions financières et de recherche.

Dans les tableaux, les évolutions des politiques nationales sont regroupées par domaine politique, puis par pays (par ordre alphabétique) et sont accompagnées d’une référence à leur mois de mise en œuvre et aux produits concernés. Les mesures sectorielles sont quant à elles présentées par thème, puis par ordre chronologique, et sont accompagnées d’une indication du pays concerné.

Remerciements: Ce rapport a été préparé par l’équipe oléagineux de la Division des produits et échanges (EST) sous la direction de P. Thoenes et avec l’aide de D. Yang et M. Milo. Le soutien de E. Vecchione, qui a formaté ce rapport, est apprécié.

©/Alamy.com

Filière oléagineuses: Évolution des politiques et des mesures sectorielles - Recueil annuel 2018 ix

Faits saillants

Les paragraphes ci-après résument les évolutions des politiques et les tendances les plus pertinentes observées en 2018 sous forme de liste à puces. Des informations plus détaillées sont fournies dans les tableaux qui suivent (disponibles en anglais seulement).

POLITIQUES PUBLIQUESSoutien aux producteurs: En 2018, la Chine a accru son soutien aux producteurs de soja alors qu’elle a réduit les subven-tions accordées à la production de maïs, reflétant à la fois la poursuite des efforts visant à réduire la dépendance du pays à l’égard des importations de soja et les réformes en cours destinées à réduire le système national de réserves céréalières. Concernant les ventes de soja, d’huile de soja et d'huile de colza réalisées par le gouvernement à partir des stocks publics, les volumes proposés lors des ventes aux enchères ont reculé par rapport aux années précédentes, conformément aux décisions prises dans le passé visant à éliminer progressivement les achats publics des produits oléagineuses. En Inde, les oléagineux et les légumineuses – c.-à-d. deux cultures caractérisées par des déficits importants de l’offre domestique – ont reçu une attention accrue de la part des décideurs politiques qui ont i) approuvé des augmentations plus élevées que d’hab-itude des prix minimum de soutien, et ii) entrepris des réformes dans le système d'achats publics en vue de protéger les producteurs face à la dépression des prix du marché. Au Brésil, les subventions habituelles en faveur des prêts agricoles, les programmes de soutien à la commercialisation et les programmes d’assurance-récolte ont été renouvelés, alors qu’aux les États-Unis d'Amerique (États-Unis) une nouvelle Loi agricole couvrant la période 2019-2023 a été adoptée en décembre 2018. Cette loi prolonge les différents plans de protection sociale agricole en vigueur et introduit de petits changements visant à améliorer l’efficacité des ces outils d’appui. En outre, à l'automne 2018, les agriculteurs américains touchés par les mesures de rétorsion adoptées par la Chine sur certaines importations américaines, notamment le soja, ont bénéficié d’in-demnités compensatoires. Dans l'Union européene (UE) et en Australie, des indemnités de soutien ont été autorisées pour les agriculteurs touchés par la sécheresse extrême. Au Mexique, le système d’achats institutionnels de graines oléagineuses est resté en vigueur, bien que sa portée ait été réduite par rapport aux années précédentes. En revanche, les producteurs de graines oléagineuses ont bénéficié de paiements accrus au titre du soutien aux revenus.

Développement du secteur: De nombreux pays, en particulier des pays en développement de la région Asie-Pacifique et d'Afrique, ont continué à mettre en œuvre un éventail de mesures de développement du secteur, en poursuivant principale-ment les objectifs à long terme suivants: i) réduire la dépendance à l'égard des importations; ii) augmenter les recettes d'ex-portation; iii) favoriser la valeur ajoutée au niveau local; et iv) promouvoir davantage les méthodes de production durables et résilientes. L'Indonésie, par exemple, a lancé un ambitieux programme de reboisement pour les petits exploitants du palmier à huile. Le programme national, qui s’échelonne sur plusieurs années, vise à favoriser la croissance de la production en aug-mentant les niveaux de productivité plutôt qu’en accroissant les superficies exploitées, qui soulève des préoccupations sur le plan environnemental. Parmi les pays développés, l'UE a renouvelé son engagement en faveur de la promotion de culture de protéagineux en vue de réduire sa dépendance à l’égard des importations de soja génétiquement modifié, tandis que le Canada continue de soutenir le développement de son secteur du colza, axé sur les exportations.

Mesures de lutte phytosanitaire: L'approbation des herbicides et des normes relatives à leur utilisation demeure assu-jettie à l'examen des décideurs politiques dans plusieurs pays, reflétant l’inquiétude persistante concernant les risques potentiels pour l'environnement et la santé. Aux États-Unis, l'utilisation du Dicamba, l'un des herbicides appliqués largement dans la culture de soja, a été réautorisée, associée à un certain nombre de restrictions. Quant au le Glyphosate, un tribunal américain a condamné un fabricant pour avoir omis d'avertir les utilisateurs sur les risques de cancer liés à l’utilisation de ce produit, tandis qu'au Brésil, une récente interdiction temporaire d’utilisation a été annulée pour préserver les intérêts économiques nationaux. Parallèlement, le Canada et l’UE ont limité davantage l’utilisation des néonicotinoïdes. Un certain nombre d'États membres de l'UE ont également lancé des programmes conjoints pour la prévention et le contrôle d'une maladie bactérienne affectant les oliviers, tandis qu'un groupe de nations africaines ont uni leurs forces pour lutter contre la contamination par les aflatoxines.

Politiques relatives aux biocarburants: Des cibles accrues en matière d’utilisation obligatoire de biodiesel ont été fixés ou sont prévus pour les années à venir dans un certain nombre de pays (à savoir: Argentine, Brésil, Colombie, la République de Corée, Indonésie, Malaisie, Thaïlande et États-Unis), induit par notamment le resserrement des écarts de prix entre les huiles végétales et minérales, qui rend le biodiesel plus compétitif. Outre le fait de contribuer à l'atteinte des objectifs environne-mentaux, les cibles nationales plus élevés visent également à accroître l’absorption d'huiles végétales produites localement, de façon à réduire la pression sur l'offre intérieure et à stabiliser des prix. C’est le cas notamment en Indonésie, où la portée des subventions accordées au biodiesel a été élargie et l’utilisation obligatoire de biodiesel a été étendue à d’autres sec-teurs – en vue de favoriser l’utilisation de l’huile de palme nationale. L’Argentine, où la production de biodiesel est demeurée

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essentiellement axée sur les exportations, a relevé la taxe imposée sur les exportations de carburant en vue d’atténuer les inquiétudes des partenaires commerciaux concernant les subventions prétendument accordées à l’industrie du biodiesel du pays. Aux États-Unis, les législateurs ont rétroactivement prolongé le crédit d’impôt sur le biodiesel jusqu’en décembre 2017, mais n’ont pas délibéré sur son renouvellement pour 2018. L’Inde a adopté des objectifs ambitieux d’utilisation du biodiesel sur le long terme, en mettant l’accent sur les matières premières produites sur le marché intérieur, en particulier les huiles de cuisson usagées. L’UE a publié une nouvelle directive relative aux bioénergies qui redéfinit les objectifs d’utilisation de biocarburant à partir de 2020. Le nouveau dispositif combine des plafonds pour les biocarburants d’origine agricole (y compris le biodiesel à base d’huile végétale) avec des objectifs ambitieux pour les biocarburants produits à partir de bio-masse non alimentaire. Il détermine aussi que les combustibles considérés comme occasionnant des changements d’affec-tation des terres importants devront être retirés progressivement. La Norvège a également pris des mesures visant à exclure du marché national des carburants les biocarburants dont la production est associée à un risque élevé de déboisement. Les Gouvernements indonésiens et malaisiens ont contesté ces initiatives.

Mesures de politique commerciale: En 2018, un certain nombre de différends commerciaux bilatéraux ont affecté le commerce mondial des graines oléagineuses et de leurs produits dérivés. En particulier, l'émergence de divergences entre les États-Unis et la Chine concernant leurs politiques commerciales respectives a entraîné l'adoption de nouvelles mesures commerciales visant à équilibrer l'ensemble des échanges entre les deux pays. Les nouveaux instruments comporte des droits de rétorsion à l’importation de la part de la Chine sur le soja des États-Unis, qui en raison de l’ampleur des achats de la Chine, ont affecté non seulement les transactions entre les deux nations mais également les régimes commerciaux à l’échelle mondiale, avec des répercussions sur les marchés internes de divers pays. En outre, des différends de longue date concernant le commerce du biodiesel à base d'huile végétale ont persisté en 2018, notamment: i) les exportations de l'Ar-gentine et de l'Indonésie demeure confrontées à des droits compensatoires supplémentaires aux États-Unis, et ii) les Philip-pines ont initié des enquêtes anti-dumping sur les importations d'huile de palme en provenance d’Indonésie et de Malaisie.

En ce qui concerne l'accès aux importations, la Chine – pour atténuer l'impact de ses nouveaux tarifs sur le soja des États-Unis – a facilité l'accès à son marché des huiles et des farines provenant d'autres origines, alors que la Turquie a abaissé (au moins temporairement) ses droits sur les importations d'huile végétale par crainte de pénuries de l’offre in-térieure. En revanche, un certain nombre de pays ont maintenu ou, comme dans le cas de l'Inde, ont augmenté les droits à l'importation imposés sur les graines oléagineuses et leurs produits dérivés afin de protéger les agriculteurs locaux, d’en-courager la production intérieure et de soutenir les transformateurs et les raffineurs nationaux.

Du côté des exportations, la baisse des prix mondiaux de l'huile de palme a incité l'Indonésie et la Malaisie à suspendre leurs droits sur les exportations d’huile de palme en vue de stimuler la demande internationale et de plafonner les stocks intérieurs. A l’inverse, l'Argentine a augmenté ses taxes à l'exportation sur les graines oléagineuses, les huiles et les farines (mettant ainsi fin aux politiques antérieures) dans le cadre de vastes politiques de resserrement budgétaire. Au cours du pro-cessus, l'industrie nationale de la trituration des graines oléagineuses a perdu la protection dont elle bénéficiait par le biais de taxes différentielles. En outre, l'Ukraine a décidé d'éliminer progressivement les remboursements fiscaux qu’elle avait l’habitude d’accorder aux exportateurs d’oléagineux, alors que la Chine a cessé d’accorder des abattements d'impôt sur les exportations de farines de soja en vue d'aider à satisfaire la demande intérieure de farines protéiques.

Par ailleurs, un certain nombre d’accords commerciaux compréhensifs étaient en cours de négociation ou sont entrés en vi-gueur en 2018 – impliquant souvent des pays importants en matière d’importation/exportation d’oléagineux, notamment en ce qui concerne l’huile de palme. Concernant les initiatives commerciales bilatérales spécifiques aux graines oléagineuses, il y a eu moins d’initiatives en 2018 que lors des années précédentes.

Réglementation du marché: Bien qu’occupant une place moins importante qu’au cours des années passées, un cer-tain nombre de pays ont continué de réguler les marchés intérieurs à l'aide d'un large éventail d'instruments. En Chine, le gouvernement a appuyé des mesures pris par l’industrie visant à réduire la teneur en protéines dans les aliments composés pour animaux, une initiative dont le but est de réduire la dépendance du secteur des aliments pour animaux à l’égard des farines de soja importées. Parallèlement, le Sénégal et le Sri Lanka ont mis en place des mesures de contrôle visant à stabi-liser les prix de détail intérieurs de l’huile d’arachide (Sénégal) et des produits dérivés de la noix de coco (Sri Lanka).

Normes alimentaires: La présence de gras trans mauvais pour la santé (qui sont générés lorsque les huiles végétales sont hydrogénées afin d'accroître leur stabilité) dans les produits alimentaires a continué d'attirer l'attention des décideurs politiques du monde entier. Alors que les niveaux maximaux autorisés pour les acides gras trans ont été abaissés dans l'UE et la Communauté économique eurasienne, les législateurs des États-Unis et de la Thaïlande ont adopté une législation interdisant la production et la vente d'aliments contenant des huiles et des graisses partiellement hydrogénées. Au niveau intergouvernemental, l'OMS a diffusé un plan d'action aidant les pays membres à éliminer les gras trans de leur chaîne d'ap-provisionnement. En outre, des mesures visant à réduire la consommation de graisses saturées étaient à l'étude dans de nombreux pays, tandis que des mesures de contrôle de la contamination par les aflatoxines ont été prises en Chine. L’année 2018 a également été marquée par de nouveaux efforts déployés pour lutter contre le frelatage des huiles comestibles, en particulier en Inde.

Politiques en matière d’OGM: Bien qu'un certain nombre de nouvelles variétés oléagineuses GM (génétiquement modi-fiées) aient été officiellement approuvées en Argentine, en Australie et au Brésil, les compagnies de semences concernées ont choisi de reporter leur lancement commercial, dans l’attente des résultats des examens réglementaires dans tous les

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MESURES ET INITIATIVES DE L'INDUSTRIE

principaux marchés d'importation. Par ailleurs, au Brésil, la révocation des droits de brevet sur les semences concernant une variété populaire de soja GM a engendré des différends sur les paiements de redevances déjà recueillis. Les États-Unis ont réglementé la publication d’informations relatives au matériel GM utilisé, sur les étiquettes de produits alimentaires, qui deviendront obligatoires en 2022. Les ingrédients ultratransformés issus de cultures génétiquement modifiées, y compris l'huile végétale raffinée, ont été exemptés de la nouvelle obligation d'étiquetage. L'UE a jugé que les cultures obtenues par l'intermédiaire des techniques d’édition génomique relevaient de sa réglementation sur les OGM, alors que les États-Unis et la Chine ont choisi de ne pas réglementer cette nouvelle méthode de sélection végétale.

Durabilité de la production: Le débat sur la nécessité d'évoluer vers des méthodes de production plus durables s'est en-core intensifié en 2018, et concerne non seulement l'huile de palme mais également le soja. Dans un contexte d’examen at-tentif de la part du grand public, les législateurs en Indonésie, en Malaisie ainsi que dans d’autres pays producteurs d’huile de palme ont intensifié leurs efforts visant à promouvoir des pratiques de production plus durables. L'Indonésie a approuvé un moratoire attendu depuis longtemps, à l'échelle du pays, sur les nouvelles concessions de plantations de palmiers à hu-ile. En outre, de nouveaux outils pour surveiller les conditions des forêts du pays ont été mis en place et des fonds destinés à la protection et à la restauration des tourbières ont été débloqués. Par ailleurs, l’Indonésie et la Malaisie ont mis en œuvre des mesures visant à accélérer l’adoption de régimes de certification nationaux obligatoires pour l’huile de palme. Des poli-tiques destinées à encourager l’adoption de pratiques de production durables ont également été examinées en Équateur. Pour ce qui est du soja, dans la région du Cerrado au Brésil, des enquêtes officielles ont été lancées sur l’expansion des superficies consacrées au soja et impliquant la conversion de terres protégées. En outre, en France, un plan d’action relatif à la lutte contre les changements climatiques publié récemment comprend des dispositions visant à mettre fin aux importa-tions de produits agricoles qui contribuent à la déforestation, le soja et l’huile de palme figurant parmi les cultures ciblées.

Secteur des transports: Au Brésil, le Gouvernement a introduit des taux de fret minimum – une mesure qui a fait aug-menter considérablement les coûts de transport terrestre des graines. Un point positif, les statistiques officielles font état d’une importance croissante des couloirs d’exportation du nord récemment développés pour les négociants de la ceinture agricole du Centre-Ouest du Brésil, ce qui a permis de désengorger les routes traditionnelles en direction du sud. Ailleurs, le Canada a mis à jour sa législation nationale sur les transports, en vue d’assurer aux agriculteurs un accès en temps op-portun à des services ferroviaires fiables.

Production durable: En 2018, les normes industrielles concernant la production durable d'huile de palme n’ont cessé d’évoluer sous l'œil attentif du grand public, comme en témoignent plusieurs nouvelles initiatives privées favorisant l'adop-tion de pratiques plus responsables le long de la chaîne de valeur. Alors que plusieurs grandes compagnies d’huile de palme ont mis sur pied des projets visant à former les petits exploitants aux pratiques de production durable et à appuyer leur inclusion dans les régimes de certification formelle, plusieurs entreprises commerciales agroalimentaires mondiales et de nombreux fabricants de produits alimentaires ont renouvelé leurs engagements envers l'approvisionnement «responsable». Dans certains cas, les engagements visant à surveiller les fournisseurs comprenaient des engagements à rendre publique l’identité des fournisseurs. En outre, un certain nombre de sociétés se sont lancées dans l’utilisation d’outils de cartographie par satellite conçus pour tracer systématiquement la provenance des approvisionnements, permettant ainsi aux acheteurs de s’assurer que les fournisseurs individuels respectent leurs exigences. À cet égard, en 2018, le nombre de cas où les acheteurs ont suspendu leurs relations avec des fournisseurs qui ne respectaient pas leurs politiques de durabilité a aug-menté par rapport aux années antérieures.

À la fin de 2018, la Table ronde pour une huile de palme durable (RSPO), l’organisme de normalisation et certification de l’huile de palme dirigé par l’industrie et mondialement reconnu, a adopté une nouvelle série de normes plus strictes, y com-pris une interdiction relative au défrichement des forêts secondaires et de certaines tourbières. En outre, la RSPO ayant pris des mesures visant à renforcer la crédibilité de son système de certification, de vérification et d’examen des plaintes, des nouveaux cas présumés de violation ont suscité le retrait volontaire de certains membres ainsi que des mesures coercitives de la RSPO envers d'autres membres. L’organisme de certification a également décidé de garantir l’anonymat aux per-sonnes déposant des plaintes contre ses membres.

Malgré ces efforts, la mesure dans laquelle la certification contribue effectivement à faire progresser les pratiques de pro-duction durable continue de faire l’objet d’âpres discussions. Un certain nombre d'observateurs ainsi que des représentants de l'industrie ont signalé que la prévalence de structures d'entreprise opaques permettant aux sociétés de dissimuler leurs liens avec des méthodes de production non durables ont continué de compromettre les objectifs clés de la certification.

Parallèlement, il a été estimé que, comme lors des années précédentes, à peine un cinquième de la production mondiale d'huile de palme a été certifié comme étant durable. Plus important encore, la croissance de la demande mondiale d'huile certifiée est restée modeste, ce qui semble indiquer que les niveaux de sensibilisation des consommateurs restent faibles, en particulier dans les pays en développement. Selon les données de la RSPO, l’offre mondiale d’huile de palme certifiée a continué de dépasser les ventes réelles, tant dis que à peu près la moitié de l’ensemble des produits certifiés n’a pas

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trouvant d’acheteur. Pour faire face à ce problème, les parties prenantes le long de la chaîne de valeur de l'huile de palme ont créé de nouvelles alliances afin de promouvoir la consommation d’huile de palme certifiée dans deux grands pays con-sommateurs, l'Inde et la Chine (respectivement les premier et troisième plus gros importateurs d'huile de palme). Dans ces deux pays, des plateformes nationales visant à sensibiliser les entreprises et les consommateurs aux huiles certifiées ont été mises en place en 2018.

Les discussions relatives à la durabilité ont reçu une attention accrue également dans d’autres secteurs, en particulier en ce qui concerne le commerce international de soja. À ce propos, le Brésil, premier fournisseur de soja de la planète, a vu le lancement d’une alliance multipartite visant à mettre fin au développement des superficies consacrées au soja qui en-trainent la conversion de la végétation indigène dans le Cerrado, la région dans laquelle environ la moitié du soja du pays est cultivée. Les entreprises participantes se sont engagées à dissocier leurs chaînes de valeur de soja des zones récemment boisées et à explorer des moyens de récompenser les agriculteurs qui s’abstiennent de défricher des zones qui pourraient autrement être légalement déboisées. En outre, dans le cadre d’un régime de prêt «responsable» mis en place par un con-sortium privé, les agriculteurs qui s’engagent à développer leur production de façon durable peuvent accéder à des prêts à des conditions préférentielles.

Commerce international: Dans un contexte d’évolution des relations commerciales entre les États-Unis et la Chine, les sociétés de négoce de graines contrôlées par l’État chinois ont continué à renforcer leur présence sur les marchés et les infrastructures de transport outre mer, en particulier au Brésil, contribuant ainsi à limiter la dépendance du pays à l’égard des négociants étrangers. Par ailleurs, les exportateurs d’huile de palme en Malaisie ont uni leurs forces en vue de stimuler leurs ventes sur d’autres marchés que celui de l’Union Européenne, en raison des inquiétudes relatives à l’introduction prob-able de barrières spécifiques à l’importation d’huile de palme à l’échelle de l’UE. Au Brésil, des associations d'agriculteurs dans la ceinture agricole du Centre-Ouest ont uni les efforts publics/privés actuels visant à renforcer les voies d'exportation du nord du pays. Elles ont manifesté leur volonté de cofinancer la construction d'une voie ferrée vers les ports du nord et d’instaurer des liens avec l'Autorité du Canal de Panama pour favoriser les expéditions de graines à partir du nord du Brésil en passant par le Canal vers des destinations dans l'océan Pacifique.

Pratiques de commercialisation: Dans l'UE, deux nouveaux cas de détaillants alimentaires ayant décidé de retirer l'huile de palme de leurs produits alimentaires de marque distributeur ont été signalés. En outre, un système global de certification volontaire «sans huile de palme» (International Palm Oil Free Certification Accreditation Programme) a obtenu l’approbation réglementaire dans plusieurs pays. Pour ce qui concerne les marchés des semences, un différend de longue date entre les agriculteurs argentins et les fournisseurs de semences concernant des paiements de redevances a été résolu. Pour ce qui est des marchés à terme, diverses bourses de marchandises ont introduit des améliorations à leurs contrats pour les oléag-ineux et leurs sous-produits. En outre, des négociants mondiaux ont pour la première fois mené de transactions fondées sur la technologie des chaînes de blocs ("blockchain").

Recherche et développement: Comme dans les années précédentes, en 2018, des activités de recherche menées par l’in-dustrie et des universités ont abouti au développement: i) de nouvelles variétés d'oléagineux plus performantes ou offrant un niveau de tolérance plus élevé aux maladies, et ii) d’huiles et de farines à fonctionnalité améliorée et/ou dotées de profils nu-tritionnels et sanitaires plus bénéfiques. Les entreprises semencières à l’échelle de la planète ont manifesté un intérêt accru envers les techniques d’édition génomique (par opposition aux méthodes traditionnelle de modification génétique), guidés par des considérations de coût ainsi que des niveaux d’appréciation accrus prévus de la part des consommateurs. Outre les nouvelles variétés d'oléagineux, les activités de recherche ont également porté sur la fabrication de nouveaux produits à base d’huile/de farine, couvrant de nouveaux usages pour l’alimentation humaine/animale ainsi que des applications indus-trielles. Parmi ces nouveaux produits figurent les protéines de qualité alimentaire à base de farine de tournesol, de lécithine de colza déshuilée, ainsi que des plastiques, des polyesters, des médicaments et d'autres matériaux industriels fabriqués en partie à partir de matières résiduelles. Les travaux sur les méthodes visant à détecter le frelatage d’huiles alimentaires, notamment d’huile d’olive, ont également continué de faire l’objet d’une attention particulière.

Mesures relatives aux biocarburants: Pour ce qui concerne les biocarburants, les efforts de l'industrie se sont davantage axés sur l'utilisation des déchets, notamment les huiles de cuisson usagées, comme matières premières pour la production de biodiesel – un développement facilité par les progrès technologiques dans la transformation des matières premières de qualité inférieure.

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Introducción

La finalidad de este compendio es facilitar, en un único documento, un panorama general de los principales cambios de política y medidas conexas adoptadas por el sector privado en relación con los mercados mundial y nacionales de semillas oleaginosas, aceites, grasas y harinas en un año determinado, en este caso 2018.

El compendio reproduce, en forma tabular, todas las políticas y noticias del sector industrial aparecidas durante 2018 en la publicación FAO Oilcrops Monthly Price and Policy Update (MPPU). El objetivo principal es facilitar la labor de los responsables de las políticas, expertos de mercado, analistas y otras partes interesadas, proporcionándoles un panorama general breve y conciso de las novedades de política pertinentes a la industria de las semillas oleaginosas a nivel mundial, regional y nacional.

Aunque se ha hecho todo lo posible para cubrir las novedades más destacadas y pertinentes, la lista de noticias presentadas no es exhaustiva. Además, basándose en una variedad de fuentes, los informes presentados se concentran en factores clave, absteniéndose de evaluaciones profundas sobre su impacto.

Las noticias se presentan divididas en dos grupos principales: 1) cambios de política aplicados (u objeto de examen) por los gobiernos nacionales, y 2) iniciativas voluntarias del sector industrial, que incluyen las medidas adoptadas por las empresas privadas, asociaciones del sector, grupos de la sociedad civil e instituciones de investigación y financieras.

En los cuadros, las novedades en materia de políticas nacionales se agrupan por ámbitos de política y por países (en orden alfabético), incluidas las referencias al mes de aplicación y al producto de interés. Por otro lado, las medidas del sector industrial se presentan por tema y en orden cronológico, con indicación del país involucrado.

Agradacimientos: Este informe ha sido elaborado por el equipo semillas oleaginosas de la Dirección de Comercio y Mercados (EST), bajo la dirección de P. Thoenes y con la ayuda de D. Yang y M. Milo. Se agradece el apoyo de E. Vecchione que formateó este informe.

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xiv Sector oleaginosas: Cambios de políticas y de medidas del sector industrial - Compendio anual 2018

Aspectos más destacados

En las siguientes líneas se presentan de manera resumida los cambios de política y tendencias más relevantes observadas en 2018. En los cuadros que figuran a continuación (disponibles sólo en inglés) se proporciona información más detallada.

POLÍTICAS GUBERNAMENTALES

Apoyo a los agricultores: En 2018, China amplió su apoyo a los productores de soja al tiempo que reducía los subsidios a la producción de maíz, lo que refleja tanto los esfuerzos continuos para reducir la dependencia del país de la soja importada como las reformas en curso para reducir el sistema nacional de reservas de cereales. En cuanto a las ventas del Gobierno de soja, aceite de soja y aceite de colza de las reservas públicas, los volúmenes ofrecidos en las subastas se contrajeron en comparación con los de años anteriores, en consonancia con las decisiones adoptadas anteriormente de eliminar gradualmente las compras públicas de cultivos oleaginosos. En la India, las semillas oleaginosas y las legumbres, es decir, los cultivos caracterizados por un marcado déficit de oferta interna, recibieron una mayor atención por parte del Gobierno, quien aprobó aumentos superiores a los habituales de los precios de apoyo mínimos y emprendió reformas en el sistema de adquisiciones públicas con la intención de proteger a los productores de la caída de los precios del mercado. En el Brasil se renovaron las subvenciones habituales para los préstamos agrícolas, los programas de apoyo a la comercialización y los planes de seguro de las cosechas, mientras que en los Estados Unidos de América (Estados Unidos) se aprobó, en diciembre de 2018, una nueva Ley Agrícola que abarca el período 2019-2023. La ley amplió los diversos sistemas existentes de redes de seguridad agrícola, al tiempo que introdujo pequeños cambios para mejorar la eficacia de estos instrumentos de apoyo. Además, en el otoño de 2018, se concedieron pagos compensatorios a los agricultores estadounidenses afectados por la introducción por parte de China de aranceles de retorsión sobre determinadas importaciones estadounidenses, en particular la soja. En la Unión Europea (UE) y Australia, se autorizaron los pagos de ayuda a los agricultores afectados por la sequía extrema. En México, el plan de compras públicas de semillas oleaginosas se mantuvo, aunque su alcance se redujo en comparación con años anteriores; por el contrario, los productores de semillas oleaginosas se beneficiaron de pagos más elevados de apoyo a los ingresos.

Medidas de desarrollo del sector: Numerosos países, en especial los países en desarrollo de la región de Asia y el Pacífico y de África, siguieron aplicando diversas medidas de desarrollo del sector, principalmente con los siguientes objetivos a largo plazo: i) reducir la dependencia de las importaciones; ii) aumentar los ingresos de exportación; iii) fomentar el valor añadido local, y iv) promover métodos de producción más sostenibles y resilientes. En Indonesia, por ejemplo, se puso en marcha un ambicioso plan de replantación para los pequeños productores de palma aceitera. El plan nacional plurianual tiene por objeto fomentar el crecimiento de la producción mediante el aumento de los niveles de productividad, en contraposición a la ambientalmente controvertida expansión de las superficies. Entre los países desarrollados, la UE renovó su compromiso de promover los cultivos proteaginosos con vistas a reducir la dependencia del bloque de la soja transgénica importada, mientras que el Canadá siguió apoyando el desarrollo de su industria de colza orientada a la exportación.

Medidas de control de plagas: La aprobación de los herbicidas y las normas relativas a su uso siguieron siendo objeto de examen por los gobiernos en varios países, lo que indica una preocupación persistente por los posibles riesgos para el medio ambiente y la salud. En los Estados Unidos, el uso de dicamba, uno de los herbicidas ampliamente aplicados en el cultivo de la soja, se volvió a autorizar vinculado a una serie de restricciones. En cuanto al glifosato, un tribunal estadounidense impuso una multa a un fabricante por no advertir a los usuarios sobre los riesgos de cáncer del producto, mientras que en el Brasil se revocó una prohibición impuesta recientemente de utilización temporal para salvaguardar los intereses económicos nacionales. Mientras tanto, el Canadá y la UE limitaron aún más el uso de neonicotinoides. Varios Estados miembros de la UE también pusieron en marcha programas conjuntos para la prevención y el control de una enfermedad bacteriana que afecta a los olivos, mientras que un grupo de naciones africanas unieron sus fuerzas para combatir la contaminación por aflatoxinas.

Políticas en materia de biocombustibles: En varios países – en específico la Argentina, el Brasil, Colombia, la República de Corea, los Estados Unidos, Indonesia, Malasia y Tailandia – se aplicaron o programaron objetivos de consumo obligatorio más elevados para el biodiesel, debido en parte a la reducción de la diferencia de precios entre los aceites vegetales y minerales, que hizo que el biodiesel fuera más competitivo. Además de contribuir a los objetivos medioambientales, los objetivos nacionales más ambiciosos también tenían por objeto impulsar el uso de los aceites vegetales producidos localmente, reduciendo así la presión de la oferta interna y estabilizando los precios. Un ejemplo de ello es Indonesia, donde se amplió el alcance de las subvenciones al biodiesel y se extendió el uso obligatorio del biodiesel a otros sectores con miras a fomentar la absorción nacional de aceite de palma. La Argentina, donde la producción de biodiesel sigue estando orientada principalmente a la exportación, aumentó su impuesto a las exportaciones de combustible con la intención de disipar las preocupaciones de

Sector oleaginosas: Cambios de políticas y de medidas del sector industrial - Compendio anual 2018 xv

los socios comerciales sobre la supuesta subvención de la industria del biodiesel nacional. En los Estados Unidos, los legisladores prorrogaron retroactivamente el crédito fiscal al biodiesel hasta diciembre de 2017, pero no deliberaron sobre su renovación para 2018. La India adoptó ambiciosos objetivos de consumo a largo plazo de biodiesel, centrándose en las materias primas de producción nacional, en particular el aceite de cocina usado. La UE publicó una nueva directiva sobre bioenergía que redefine los objetivos de consumo de biocombustibles a partir de 2020. El nuevo paquete combina límites máximos para los biocombustibles basados en cultivos (incluido el biodiesel basado en aceites vegetales) con objetivos ambiciosos para los biocombustibles no alimentarios basados en la biomasa. Además, establece que los combustibles que se consideren que provocan fuertes cambios en el uso de la tierra tendrán que ser eliminados por completo. Noruega también tomó medidas para excluir a los biocombustibles cuya producción entraña un alto riesgo de deforestación del mercado nacional de biocombustibles. Los Gobiernos de Indonesia y Malasia cuestionaron estas iniciativas.

Medidas de política comercial: En 2018, varias controversias comerciales bilaterales afectaron al comercio mundial de cultivos oleaginosos y productos derivados. Más importante aún, el surgimiento de diferencias entre los Estados Unidos y China sobre sus respectivas políticas comerciales dio lugar a la aplicación de nuevas medidas comerciales destinadas a equilibrar la balanza comercial entre los dos países. Entre los nuevos instrumentos figuraban los derechos de importación de retorsión de China sobre la soja estadounidense, que, dada la magnitud de las compras chinas, afectaban no sólo a las transacciones entre las dos naciones, sino también a las corrientes del comercio mundial, con repercusiones en los mercados internos de varios países. Además, en 2018 persistieron las disputas de larga data sobre el comercio de biodiesel basado en aceite vegetal: i) las exportaciones de la Argentina e Indonesia se enfrentaban a derechos compensatorios adicionales en los Estados Unidos, y ii) Filipinas iniciaba investigaciones antidumping sobre las importaciones de aceite de palma procedentes de Indonesia y Malasia.

En cuanto al acceso a las importaciones, China, para mitigar el impacto de sus nuevos aranceles sobre la soja estadounidense, facilitó el acceso al mercado de aceites y harinas de otros orígenes, mientras que Turquía redujo (al menos temporalmente) sus derechos de importación sobre el aceite vegetal debido a la preocupación por la escasez de suministros internos. Por el contrario, varios países mantuvieron o, como en el caso de la India, aumentaron sus aranceles de importación sobre los cultivos oleaginosos y los productos derivados para proteger a los agricultores locales, fomentar la producción nacional de cultivos oleaginosos y apoyar a los elaboradores y refinadores nacionales.

Por lo que respecta a las exportaciones, la caída de los precios mundiales del aceite de palma llevó a Indonesia y Malasia a suspender sus derechos de exportación del aceite de palma en un intento por estimular la demanda internacional y reducir las existencias nacionales. Por el contrario, la Argentina aumentó sus impuestos a la exportación de semillas oleaginosas, aceites y harinas (revertiendo así políticas anteriores) como parte de políticas más amplias de ajuste fiscal. En el proceso, la industria de trituración de semillas oleaginosas del país perdió la protección de la que disfrutaba en el pasado mediante las diferencias impositivas. Además, Ucrania decidió eliminar gradualmente los reembolsos de impuestos que tradicionalmente concedía a los exportadores de cultivos oleaginosos, mientras que China dejó de ofrecer desgravaciones fiscales a la exportación de harina de soja con la finalidad de ayudar a satisfacer la demanda interna de harinas proteicas.

Además, en 2018 se estaban negociando o estaban por entrar en vigor varios acuerdos comerciales integrales, en los que a menudo participaban importantes países exportadores e importadores de semillas oleaginosas, en particular en lo que respecta al aceite de palma. En cuanto a las iniciativas comerciales bilaterales específicas para los cultivos oleaginosos, en 2018 hubo menos iniciativas que en años anteriores.

Regulación del mercado: Aunque menos relevantes que en años anteriores, varios países siguieron utilizando diversos instrumentos para regular los mercados nacionales. En China, el Gobierno apoyó los esfuerzos de la industria para reducir el contenido de proteínas prescrito en los piensos compuestos, una medida encaminada a reducir la dependencia del sector de los piensos de la harina de soja importada. Mientras tanto, el Senegal y Sri Lanka pusieron en marcha medidas de control del mercado destinadas a estabilizar los precios al por menor de los productos de aceite de maní y de coco, respectivamente.

Normas alimentarias: La presencia de grasas trans nocivas (que se generan cuando se hidrogenan los aceites vegetales para aumentar su estabilidad) en los productos alimenticios siguió atrayendo la atención de los responsables de la formulación de políticas de todo el mundo. Mientras que los niveles máximos permitidos de grasas trans se redujeron en la UE y la Unión Económica Euroasiática, los legisladores de los Estados Unidos y Tailandia adoptaron una legislación que prohibía la producción y venta de alimentos que contuvieran grasas o aceites parcialmente hidrogenados. A nivel intergubernamental, la OMS publicó un plan de acción para ayudar a los países miembros a eliminar las grasas trans de sus cadenas alimentarias. Además, en varios países se estaban estudiando medidas encaminadas a reducir el consumo de grasas saturadas por parte de la población, mientras que en China se estaban adoptando medidas para controlar la contaminación por aflatoxinas. El año 2018 también fue testigo de nuevos esfuerzos para combatir la adulteración de los aceites comestibles, en particular en la India.

Políticas en materia de OMG: Si bien en la Argentina, Australia y el Brasil se aprobaron oficialmente algunas nuevas variedades de cultivos oleaginosos modificados genéticamente, las empresas productoras de semillas interesadas optaron por aplazar su comercialización, a la espera de los resultados de los exámenes regulatorios en los principales mercados de importación. Mientras tanto, en el Brasil, la revocación de los derechos de patente de semillas de una popular variedad de soja transgénica dio lugar a disputas sobre pagos de regalías ya cobrados. Los Estados Unidos reglamentaron sobre

xvi Sector oleaginosas: Cambios de políticas y de medidas del sector industrial - Compendio anual 2018

la divulgación de material transgénico en las etiquetas de los productos alimenticios, que será obligatoria en 2022. Los ingredientes altamente elaborados procedentes de cultivos modificados genéticamente, incluido el aceite vegetal refinado, quedaron exentos del nuevo requisito de etiquetado. La UE determinó que los cultivos obtenidos mediante técnicas de edición del genoma entran en el ámbito de aplicación de sus reglamentos en materia de OMG, mientras que los Estados Unidos y China optaron por no reglamentar el nuevo método de fitomejoramiento.

Sostenibilidad de la producción: Los debates sobre la necesidad de avanzar hacia métodos de producción más sostenibles se intensificaron aún más en 2018, y, además del aceite de palma, se refirieron también a la soja. A raíz de un intenso análisis público, los legisladores de Indonesia, Malasia y otros países productores de aceite de palma redoblaron sus esfuerzos para promover prácticas de producción más sostenibles. Indonesia aprobó una anhelada moratoria nacional sobre las nuevas concesiones de plantaciones de palma aceitera. Además, se crearon nuevos instrumentos para seguir de cerca la situación de los bosques del país y se liberaron fondos para la protección y restauración de las turberas. Además, Indonesia y Malasia aplicaron medidas para acelerar la adopción de sistemas nacionales de certificación obligatorios para el aceite de palma. En el Ecuador también se están examinando políticas para alentar la adopción de prácticas de producción sostenible. En cuanto a la soja, en la región de Cerrado en Brasil, se iniciaron investigaciones oficiales sobre la expansión del cultivo de soja que implicaba la conversión de tierras protegidas. Además, en Francia, un plan de acción sobre el control del cambio climático recientemente publicado incluía disposiciones para poner fin a la importación de productos agrícolas que contribuyen a la deforestación, entre los que figuraban la soja y el aceite de palma.

Sector del transporte: En el Brasil, el Gobierno introdujo tarifas mínimas de flete, una medida que elevó considerablemente los costos del transporte terrestre de granos. Como aspecto positivo, las estadísticas oficiales indican una creciente importancia de los corredores de exportación del norte del país para los comerciantes en las zonas agrícolas del centro-oeste, lo que contribuyó a descongestionar las rutas tradicionales hacia el sur. En otros lugares, el Canadá actualizó su legislación nacional en materia de transporte, con miras a garantizar que los agricultores puedan contar con servicios ferroviarios fiables en el momento oportuno.

MEDIDAS E INICIATIVAS DEL SECTOR INDUSTRIALProducción sostenible: En 2018, los estándares de la industria para la producción sostenible de aceite de palma siguieron evolucionando como consecuencia del intenso debate y análisis público, como lo demuestran varias iniciativas privadas recientes que promueven la adopción de prácticas más responsables a lo largo de la cadena de valor. Mientras que varias grandes empresas de aceite de palma ponen en marcha proyectos para capacitar a los pequeños productores en prácticas de producción sostenible y apoyar su inclusión en los sistemas formales de certificación, numerosas empresas agroindustriales y fabricantes de alimentos de todo el mundo han renovado sus compromisos en favor de un aprovisionamiento "responsable". En algunos casos, los compromisos para intensificar el seguimiento de los proveedores incluían compromisos de revelar públicamente la identidad de los proveedores. Además, varias empresas se aventuraron en herramientas cartográficas por satélite diseñadas para rastrear sistemáticamente la procedencia de los suministros, lo que permitió a los compradores verificar si los proveedores individuales cumplían sus requisitos. Con relación a lo anterior, en 2018, el número de casos en los que los compradores suspendieron su relación con los proveedores que no cumplían con sus políticas de sostenibilidad aumentó en comparación con años anteriores.

A finales de 2018, la Mesa redonda sobre el aceite de palma sostenible (por su acrónimo inglés RSPO), organismo de normalización y certificación del aceite de palma, reconocido mundialmente y dirigido por la industria, adoptó un conjunto de normas revisadas y más estrictas, entre las que se incluyó la prohibición del desbroce de bosques secundarios y de determinadas zonas de turberas. Además, a medida de que la RSPO tomaba acciones para fortalecer la credibilidad de su sistema de certificación, verificación y presentación de reclamaciones, nuevos casos de presunto incumplimiento provocaron el retiro voluntario de algunos miembros y la adopción de medidas contra otros miembros por parte de la RSPO. El organismo de certificación también decidió garantizar el anonimato de las personas que presenten denuncias contra sus miembros.

A pesar de estos esfuerzos, la medida en que la certificación contribuyó realmente a fomentar las prácticas de producción sostenible siguió siendo objeto de debate. Varios observadores, así como funcionarios de la industria, señalaron que la prevalencia de estructuras corporativas opacas que permiten a las empresas ocultar sus vínculos con formas de producción insostenibles sigue socavando los principales propósitos de la certificación.

Mientras tanto, se estimó que, al igual que en años anteriores, apenas una quinta parte de la producción mundial de aceite de palma estaba certificada como sostenible. Más aún, el crecimiento de la demanda mundial de aceite certificado siguió siendo modesto, lo que indica que los niveles de sensibilización de los consumidores siguen siendo bajos, especialmente en los países en desarrollo. Según los datos de la RSPO, los suministros mundiales de aceite de palma certificado continuaron superando las ventas reales y la mitad, aproximadamente, de todos los productos certificados no encontraron un comprador. Para abordar estos problemas, las partes interesadas a lo largo de la cadena de valor del aceite de palma forjaron nuevas alianzas para promover el consumo de aceite de palma certificado en dos de los principales países consumidores, la India y China (el primer y el tercer importador de aceite de palma del mundo respectivamente). En ambos países, en 2018 se crearon plataformas nacionales para sensibilizar a las empresas y los consumidores sobre el aceite certificado.

Sector oleaginosas: Cambios de políticas y de medidas del sector industrial - Compendio anual 2018 xvii

Los debates sobre la sostenibilidad también recibieron mayor atención en otros sectores, especialmente con respecto al comercio internacional de soja. En este sentido, el Brasil, el principal proveedor de soja del mundo, fue testigo del lanzamiento de una alianza formada por los distintos actores para ayudar a poner fin a la expansión de la soja basada en la conversión de la vegetación nativa en el Cerrado, la región donde se cultiva aproximadamente la mitad de la soja del país. Las empresas participantes se comprometieron a disociar sus cadenas de valor de la soja de las zonas recientemente forestadas y examinaron medios para recompensar a los agricultores que se abstuvieran de desbrozar zonas que, de otro modo, podrían ser legalmente deforestadas. Además, en el marco de un programa de préstamos "responsables" establecido por un consorcio privado, a los agricultores que se comprometen con formas sostenibles de expansión de la producción se les da acceso a condiciones de préstamos preferenciales.

Comercio internacional: En medio de la evolución de las relaciones comerciales entre Estados Unidos y China, las empresas comerciales de cereales controladas por el estado chino continuaron expandiendo su presencia en el mercado y la infraestructura de transporte de otros países, especialmente en el Brasil, contribuyendo así a limitar la dependencia de la nación de los comerciantes extranjeros. Mientras tanto, los exportadores de aceite de palma de Malasia unieron sus fuerzas para fomentar sus ventas a mercados distintos de la UE, movidos por la preocupación de la probable introducción de barreras a la importación específicas para el aceite de palma en toda la UE. En el Brasil, las asociaciones de agricultores de la zona agrícola del centro-oeste del país se unieron a las iniciativas públicas y privadas en curso para ampliar las rutas de exportación del norte del país. Señalaron su voluntad de cofinanciar la construcción de un ferrocarril hacia los puertos del norte y establecieron vínculos con la Autoridad del Canal de Panamá para promover el envío de cereales desde el norte de Brasil hacia destinos en el Océano Pacífico a través del canal.

Prácticas de comercialización: En la UE, se registraron dos nuevos casos de minoristas de alimentos que optaron por eliminar el aceite de palma de sus productos alimenticios de marca propia. Además, un esquema de certificación global y voluntario de "libre de aceite de palma" (Programa Internacional de Acreditación de Certificación de Libre de Aceite de Palma) obtuvo la aprobación regulatoria en una serie de países. Con respecto a los mercados de semillas, se ha resuelto una disputa de larga data entre los agricultores argentinos y los proveedores de semillas sobre los pagos de regalías. En cuanto a los mercados de futuros, varias bolsas de productos básicos introdujeron mejoras en sus contratos de cultivos oleaginosos y sus subproductos. Además, los comerciantes mundiales de productos básicos informaron de las primeras transacciones exitosas basadas en cadenas de bloques.

Investigación y desarrollo: Al igual que en años anteriores, en 2018 las actividades de investigación dirigidas por la industria y el mundo académico dieron lugar al desarrollo de i) nuevas variedades de semillas oleaginosas que ofrecían un mayor rendimiento o tolerancia a las enfermedades, y ii) aceites y harinas con una funcionalidad mejorada y/o perfiles nutricionales y de salud beneficiosos. Las empresas productoras de semillas de todo el mundo mostraron un mayor interés en las técnicas de edición del genoma (en contraposición a los métodos tradicionales de modificación genética), guiados por consideraciones de costo y los mayores niveles previstos de aceptación por parte de los consumidores. Además de las nuevas variedades de semillas oleaginosas, las actividades de investigación se centraron también en el desarrollo de nuevos productos basados en el aceite y la harina, que abarcan nuevos usos para la alimentación humana y animal, así como aplicaciones industriales. Entre los nuevos productos se incluyen proteínas de calidad alimentaria procedentes de harina de girasol, lecitina de colza desaceitada, así como plásticos, poliésteres, medicamentos y otros materiales industriales desarrollados parcialmente a partir de residuos. También se siguió prestando atención a los métodos para detectar la adulteración en los aceites comestibles, en particular en el aceite de oliva.

Medidas relativas a los biocombustibles: Con respecto a los biocombustibles, los esfuerzos de la industria se centraron cada vez más en el uso de productos de desecho, en particular el aceite de cocina usado, como materia prima para la producción de biodiesel, un desarrollo facilitado por los avances tecnológicos en la elaboración de materias primas de baja calidad.

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omes

tic p

rodu

ctio

n, s

tora

ge

and

trade

logi

stic

s. T

he p

orta

l als

o pr

ovid

es u

p-to

-dat

e in

form

atio

n on

bot

tlene

cks

alon

g co

mm

odity

va

lue

chai

ns, o

ptim

um tr

ansp

ort r

oute

s an

d ne

w in

vest

men

t opp

ortu

nitie

s.

2AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Prod

uctio

n su

ppor

t (in

cl.

proc

urem

ent s

chem

es)

Braz

ilJu

neAl

l cro

ps,

lives

tock

The

Braz

ilian

Gov

ernm

ent p

rese

nted

its

agric

ultu

ral s

uppo

rt pr

ogra

mm

es fo

r 201

8/19

. The

pac

kage

en

visa

ges

an in

crea

se in

out

lays

for

the

fol

low

ing

sche

mes

: i)

farm

loan

s (in

clud

ing

a do

wnw

ard

corre

ctio

n in

con

cess

iona

l inte

rest

rate

s an

d gr

eate

r atte

ntio

n to

: inv

estm

ents

in o

n-fa

rm g

rain

sto

rage

, lo

w c

arbo

n ag

ricul

ture

and

the

lives

tock

/aqu

acul

ture

sec

tor);

ii) m

arke

ting

supp

ort p

rogr

amm

es; a

nd

iii) c

rop

insu

ranc

e sy

stem

s. T

he s

oybe

an m

inim

um re

fere

nce

pric

e to

be

used

und

er th

e G

over

nmen

t’s

inco

me

prot

ectio

n pr

ogra

mm

es h

as b

een

rais

ed b

y 2.

4 pe

rcen

t to

BRL

36.8

4 pe

r 60

kg (U

SD 1

57 p

er

tonn

e), w

hich

com

pare

s to

an

aver

age

incr

ease

acr

oss

entit

led

com

mod

ities

of 6

.5 p

erce

nt.

3AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Prod

uctio

n su

ppor

t (in

cl.

proc

urem

ent s

chem

es)

Chi

naAp

rilSo

ybea

nsG

over

nmen

t so

urce

s co

nfirm

ed t

hat

agric

ultu

ral

supp

ort

prog

ram

mes

pro

vidi

ng f

arm

ers

in t

he

coun

try’s

north

-eas

tern

soy

bean

gro

win

g pr

ovin

ces

(Jilin

, Hei

long

jiang

, Lia

onin

g an

d In

ner M

ongo

lia)

with

hig

her s

ubsi

dies

for p

lant

ing

soyb

ean

than

for g

row

ing

mai

ze w

ill re

mai

n in

pla

ce d

urin

g 20

18/1

9 (s

ee a

lso M

PPU

Jun

e/Ju

ly/O

ct./D

ec.’1

7 &

Mar

.’18)

. The

sup

port

prog

ram

me,

whi

ch w

ill co

ver a

bout

2

milli

on h

ecta

res

in to

tal,

is a

imed

at e

ncou

ragi

ng c

rop

rota

tion

(with

acr

eage

shi

fting

from

mai

ze to

ot

her c

rops

, esp

ecia

lly s

oybe

ans)

and

land

fallo

w –

am

id e

fforts

to re

duce

the

coun

try’s

burd

enso

me

mai

ze s

tock

pile

. Acc

ordi

ng to

obs

erve

rs, h

owev

er, b

ased

on

prev

ailin

g do

mes

tic p

rices

, pro

fits

from

gr

owin

g m

aize

cou

ld s

till b

e si

gnifi

cant

ly h

ighe

r tha

n th

ose

from

soy

bean

– e

ven

allo

win

g fo

r inc

reas

ed

soyb

ean

subs

idie

s.

4AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Prod

uctio

n su

ppor

t (in

cl.

proc

urem

ent s

chem

es)

Chi

naM

aySo

ybea

nsPr

ivat

e sou

rces

repo

rted

that

gov

ernm

ent e

fforts

to st

imul

ate s

oybe

an cu

ltiva

tion i

n Chi

na’s

north

east

ern

prov

ince

s ha

ve b

een

step

ped

up th

is y

ear.

Repo

rtedl

y, in

Hei

long

jiang

and

Jilin

, thi

s ye

ar’s

area

-bas

ed

paym

ents

will

amou

nt to

CN

Y 35

0 pe

r mu

(USD

763

per

ha)

. The

pay

men

t com

pris

es: i

) a s

oybe

an

prod

ucer

sub

sidy

of C

NY

200,

whi

ch e

xcee

ds p

aym

ents

pro

vide

d in

201

7 an

d 20

16 b

y, re

spec

tivel

y, 15

and

70

perc

ent a

nd is

twic

e th

e am

ount

pro

vide

d to

mai

ze p

rodu

cers

; and

ii) a

CN

Y 15

0 pr

emiu

m

for f

arm

ers

that

pla

nt s

oybe

ans

inst

ead

of m

aize

(see

also

MPP

U O

ct./D

ec.’1

7 &

May

’18)

. Bas

ed o

n m

arke

t pric

es o

bser

ved

in e

arly

May

and

dep

endi

ng o

n yi

eld

leve

ls, t

he C

NY

350

per m

u su

bsid

y is

es

timat

ed to

add

50–

75 p

erce

nt to

the

gros

s in

com

e pe

r mu

from

gro

win

g so

ybea

ns. T

he p

rovi

ncia

l so

ybea

n-pl

antin

g ca

mpa

igns

repr

esen

t a c

ontin

uatio

n of

Chi

na’s

5-ye

ar s

truct

ural

adj

ustm

ent p

olic

y to

shi

ft la

nd fr

om m

aize

to a

ltern

ativ

e cr

ops.

On

the

othe

r han

d, th

is y

ear’s

hig

her p

aym

ents

hav

e al

so

been

link

ed to

: i) a

dro

p in

the

dom

estic

soy

/mai

ze p

rice

ratio

, whi

ch ri

sked

ero

ding

the

profi

tabi

lity

of

soyb

eans

for C

hine

se fa

rmer

s; a

nd ii

) inc

reas

ed p

olic

y eff

orts

to re

duce

Chi

na’s

relia

nce

on s

oybe

an

impo

rts –

als

o in

ligh

t of t

he o

n-go

ing

Sino

-US

trade

dis

pute

. Whi

le o

ffici

al s

ourc

es h

ave

repo

rted

a fu

rther

exp

ansi

on in

the

coun

try’s

soyb

ean

acre

age

this

sea

son,

som

e pr

ivat

e so

urce

s qu

estio

ned

the

Gov

ernm

ent’s

est

imat

es.

Tabl

e 2.

G

over

nmen

t pol

icie

s im

plem

ente

d in

201

8

Oilcrops complex: Policy changes and industry measures - Annual compendium 2018 3

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n*5

AGRI

CU

LTU

RAL

SUPP

ORT

PO

LIC

IES

– Pr

oduc

tion

supp

ort (

incl

. pr

ocur

emen

t sch

emes

)

Chi

naSe

ptem

ber

Soyb

eans

Chi

na’s

Stat

e C

ounc

il en

visa

ges

a fu

rther

exp

ansi

on in

dom

estic

soy

bean

pla

ntin

gs o

ver t

he n

ext fi

ve

year

s, h

and-

in-h

and

with

a re

duct

ion

in m

aize

sow

ings

, a s

tate

-ow

ned

new

s ag

ency

repo

rted.

6AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Prod

uctio

n su

ppor

t (in

cl.

proc

urem

ent s

chem

es)

Chi

naN

ovem

ber

Soyb

eans

Trad

e m

itiga

tion:

In

a b

id to

boo

st s

oybe

an o

utpu

t, th

e G

over

nmen

t of H

eilo

ngjia

ng, t

he c

ount

ry’s

top

soyb

ean

grow

ing

prov

ince

, has

incr

ease

d ar

ea-b

ased

pay

men

ts g

rant

ed to

soy

bean

gro

wer

s in

20

18 t

o C

NY

320

per

mu

(USD

696

per

ha)

, whi

ch c

ompa

res

to C

NY

173

per

mu

(USD

376

per

ha

) pai

d la

st y

ear.

At th

e sa

me

time,

the

north

east

ern

prov

ince

sha

rply

redu

ced

its 2

018

subs

idie

s fo

r m

aize

gro

wer

s. F

urth

erm

ore,

Chi

na’s

cent

ral G

over

nmen

t an

noun

ced

a re

duct

ion

in t

he p

rice

supp

ort f

or w

heat

gro

wer

s. T

hese

mov

es a

re p

art o

f a s

et o

f mea

sure

s m

eant

to m

itiga

te th

e im

pact

of

Chi

na’s

reta

liato

ry ta

x on

U.S

. soy

bean

s on

dom

estic

mar

kets

, whi

le re

duci

ng th

e co

untry

’s re

lianc

e on

impo

rted

soyb

eans

for f

eed.

7AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Prod

uctio

n su

ppor

t (in

cl.

proc

urem

ent s

chem

es)

Indi

aFe

brua

ryC

opra

The

Cen

tral G

over

nmen

t ra

ised

the

min

imum

sup

port

pric

es (

MSP

) fo

r m

illing

and

bal

l cop

ra t

o,

resp

ectiv

ely,

INR

75 0

00 (U

SD 1

153

) and

INR

s 77

500

(USD

1 1

91) p

er to

nne

– up

15

perc

ent f

rom

last

ye

ar’s

rate

s. T

he n

ew M

SP a

re m

eant

to e

nsur

e re

mun

erat

ive

pric

es fo

r coc

onut

farm

ers a

nd e

ncou

rage

in

vest

men

t in

coco

nut c

ultiv

atio

n. In

dia’

s na

tiona

l far

mer

and

con

sum

er c

oope

rativ

es w

ould

con

tinue

to

act

as

cent

ral n

odal

age

ncie

s re

spon

sibl

e fo

r pro

cure

men

t ope

ratio

ns in

coc

onut

gro

win

g st

ates

.

8AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Prod

uctio

n su

ppor

t (in

cl.

proc

urem

ent s

chem

es)

Indi

aFe

brua

ryO

ilsee

dsIn

res

pons

e to

pric

e fa

lls b

elow

the

MSP

lev

el,

Indi

a’s

cabi

net

has

appr

oved

a d

oubl

ing

in t

he

proc

urem

ent

of o

ilsee

ds (

and

puls

es)

by s

tate

gov

ernm

ents

. M

ore

spec

ifica

lly,

the

amou

nt s

tate

ag

enci

es a

re a

llow

ed t

o gu

aran

tee

for

proc

urem

ent

oper

atio

ns h

as b

een

rais

ed t

o IN

R 19

0 bi

llion

(USD

2.9

billi

on),

for

a fiv

e-ye

ar p

erio

d en

ding

in 2

021/

22. P

rocu

rem

ent o

pera

tions

will

cont

inue

to

be h

andl

ed b

y de

sign

ated

coo

pera

tives

und

er t

he e

xist

ing

Pric

e Su

ppor

t Sc

hem

e (P

SS),

whi

ch is

im

plem

ente

d at

the

requ

est o

f con

cern

ed s

tate

gov

ernm

ents

. The

mov

e is

aim

ed a

t pro

tect

ing

farm

ers

from

mak

ing

dist

ress

sal

es im

med

iate

ly a

fter h

arve

st, w

hen

mar

ket p

rices

tend

to p

lung

e. A

part

from

pr

ovid

ing

rem

uner

ativ

e pr

ices

to

farm

ers,

Indi

a’s

PSS

is a

lso

mea

nt t

o sa

fegu

ard

the

inte

rest

s of

co

nsum

ers,

by

mak

ing

prod

ucts

ava

ilabl

e at

reas

onab

le p

rices

and

with

low

cos

ts o

f int

erm

edia

tion.

9AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Prod

uctio

n su

ppor

t (in

cl.

proc

urem

ent s

chem

es)

Indi

aM

arch

Oilc

rops

Acco

rdin

g to

loca

l pre

ss re

ports

, the

Gov

ernm

ent o

f Ind

ia is

con

side

ring

to re

form

the

coun

try’s

publ

ic

proc

urem

ent s

chem

e fo

r agr

icul

tura

l cro

ps. N

ew p

rocu

rem

ent m

echa

nism

s un

der c

onsi

dera

tion

wou

ld

focu

s on

all

23 c

rops

for w

hich

min

imum

sup

port

pric

es (M

SP) a

re s

et b

y th

e G

over

nmen

t, in

clud

ing

oils

eeds

– un

like

the

curre

nt p

ract

ice

whe

re p

ublic

pro

cure

men

t con

cent

rate

s hea

vily

on

whe

at a

nd ri

ce.

Und

er In

dia’

s Pric

e Sup

port

Sche

me (

PSS)

also

oilc

rops

, pul

ses a

nd co

tton

are s

uppo

sed

to b

enefi

t fro

m

publ

ic p

rocu

rem

ent,

but i

n pr

actic

e pu

blic

pur

chas

es o

f the

se c

omm

oditi

es h

ave

been

inte

rmitt

ent a

nd

henc

e in

suffi

cien

t to

prev

ent f

arm

ers

from

mak

ing

dist

ress

sal

es a

t har

vest

tim

e (s

ee a

lso M

PPU

Jul

y/De

c.’1

7 &

Mar

.’18)

. Rec

ogni

zing

that

the

enfo

rcem

ent o

f MSP

s re

quire

s co

ordi

nate

d eff

orts

and

cos

t sh

arin

g ar

rang

emen

ts b

etw

een

indi

vidu

al s

tate

s an

d th

e C

entre

, the

Cen

tral G

over

nmen

t ple

dged

to

refo

rm th

e co

untry

’s PS

S. R

epor

tedl

y, in

the

futu

re, l

ocal

gov

ernm

ents

will

be a

ble

to c

hoos

e be

twee

n th

ree

mec

hani

sms:

i) a

Mar

ket A

ssur

ance

Sch

eme

invo

lvin

g de

cent

raliz

ed, d

iscr

etio

nal p

rocu

rem

ent/

disp

osal

ope

ratio

ns h

andl

ed b

y st

ate

agen

cies

, com

pris

ing

dire

ct p

aym

ents

to

farm

ers;

ii) a

Pric

e De

ficie

ncy

Paym

ent S

chem

e (P

DPS)

, und

er w

hich

farm

ers

are

prov

ided

with

the

diffe

renc

e be

twee

n m

arke

t pr

ices

and

MSP

s, w

hene

ver

mar

ket

rate

s fa

ll be

low

the

ben

chm

arks

; and

iii)

usin

g pr

ivat

e ag

enci

es to

car

ry o

ut ro

utin

e ac

quis

ition

s at

MSP

leve

ls. P

olic

y m

aker

s ar

e st

ill di

scus

sing

how

to

shar

e th

e fin

anci

al b

urde

n of

the

prop

osed

sch

emes

bet

wee

n th

e C

entre

and

indi

vidu

al s

tate

s an

d ho

w to

add

ress

rem

aini

ng in

stitu

tiona

l and

tech

nica

l cha

lleng

es in

here

nt to

eac

h sy

stem

. Cur

rent

ly, a

PD

PS c

over

ing

sele

cted

oilc

rops

is u

nder

impl

emen

tatio

n on

a tr

ial b

asis

in M

adhy

a Pr

ades

h, w

hile

ot

her s

tate

s, m

ost r

ecen

tly O

dish

a, e

ngag

ed in

tem

pora

ry p

rocu

rem

ent o

pera

tions

(see

MPP

U F

eb./

Sep.

/Oct

.’17)

.

4 Oilcrops complex: Policy changes and industry measures - Annual compendium 2018

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n*10

AGRI

CU

LTU

RAL

SUPP

ORT

PO

LIC

IES

– Pr

oduc

tion

supp

ort (

incl

. pr

ocur

emen

t sch

emes

)

Indi

aJu

neO

ilcro

psAc

cord

ing

to th

e lo

cal p

ress

, in th

e 20

17/1

8 se

ason

, the

Cen

tral G

over

nmen

t pro

cure

d a

reco

rd a

mou

nt

of p

ulse

s an

d oi

lsee

ds fr

om fa

rmer

s at

min

imum

sup

port

pric

es. F

ollo

win

g bu

mpe

r 201

7/18

har

vest

s,

pric

es o

f mos

t cro

ps fe

ll be

low

the

gove

rnm

ent-a

nnou

nced

sup

port

pric

es. R

epor

tedl

y, un

til 2

2 Ju

ne

2018

, tot

al p

rocu

rem

ent o

f oils

eeds

at s

uppo

rt pr

ices

am

ount

ed to

1.9

7 m

illion

tonn

es o

r 6.4

per

cent

of

tota

l pro

duct

ion.

11AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Prod

uctio

n su

ppor

t (in

cl.

proc

urem

ent s

chem

es)

Indi

aJu

neSu

nflow

erse

edTo

shi

eld

grow

ers

from

sha

rp p

rice

drop

s, i

n H

arya

na S

tate

, pr

ocur

emen

t of

sun

flow

erse

ed a

t go

vern

men

t-set

min

imum

pric

es s

tarte

d on

11

June

, i.e

. ahe

ad o

f the

orig

inal

ly s

ched

uled

dat

e.

12AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Prod

uctio

n su

ppor

t (in

cl.

proc

urem

ent s

chem

es)

Indi

aJu

lyG

rain

s, o

ilcro

psTh

e In

dian

Gov

ernm

ent s

igni

fican

tly ra

ised

the

min

imum

sup

port

pric

es fo

r the

maj

or 2

018/

19 K

harif

cr

ops.

The

ann

ounc

emen

t cam

e at

a ti

me

whe

n pl

antin

gs w

ere

alre

ady

in fu

ll sw

ing.

For

oilc

rops

, the

ne

w p

er-to

nne

supp

ort p

rices

(inc

ludi

ng c

rop-

spec

ific

bonu

ses)

and

the

corre

spon

ding

yea

r-on-

year

in

crea

ses

(in p

erce

nt) a

re a

s fo

llow

s: s

oybe

ans

INR

33 9

90 (U

SD 4

85),

12 p

erce

nt; g

roun

dnut

s IN

R 48

90

0 (U

SD 6

98),

10 p

erce

nt; s

unflo

wer

seed

INR

53 8

80 (U

SD 7

69),

31 p

erce

nt; s

esam

esee

d IN

R 62

490

(U

SD 8

92),

18 p

erce

nt; a

nd n

iger

seed

INR

58 7

70 (U

SD 8

39),

45 p

erce

nt. A

ccor

ding

to p

rivat

e so

urce

s,

actu

al m

arke

t pric

es s

tood

wel

l bel

ow th

e ne

w s

uppo

rt pr

ices

for g

roun

dnut

s an

d su

nflow

erse

ed, b

ut

wel

l abo

ve fo

r so

ybea

ns a

nd s

esam

esee

d. T

he s

uppo

rt pr

ices

for

cere

als,

cot

ton

and

puls

es a

lso

saw

impo

rtant

incr

ease

s, p

ossi

bly

inte

nsify

ing

com

petit

ion

for a

crea

ge. A

lthou

gh s

uppo

rt pr

ices

are

an

noun

ced

for a

larg

e nu

mbe

r of c

rops

, pub

lic p

rocu

rem

ent o

pera

tions

are

mos

tly li

mite

d to

rice

and

w

heat

(see

also

MPP

U M

ay’1

8).

13AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Prod

uctio

n su

ppor

t (in

cl.

proc

urem

ent s

chem

es)

Indi

aSe

ptem

ber

Oilc

rops

, oth

er

sele

cted

cro

psIn

line

with

ear

lier a

nnou

ncem

ents

(see

MPP

U M

ay’1

8), I

ndia

’s C

entra

l Gov

ernm

ent h

as re

form

ed it

s pr

ocur

emen

t pol

icy

with

a fo

cus

on c

rops

whe

re d

omes

tic d

eman

d ex

ceed

s lo

cal s

uppl

ies,

not

ably

oi

lsee

ds,

copr

a an

d pu

lses

. To

cov

er g

aps

in t

he e

xist

ing

publ

ic p

rocu

rem

ent

and

com

pens

atio

n m

echa

nism

s an

d he

lp ra

ise

farm

ers’

inco

mes

, thr

ee ty

pes

of p

rocu

rem

ent w

ill be

impl

emen

ted.

Firs

t, th

e C

entre

’s Pr

ice

Supp

ort S

chem

e (P

SS) w

ill be

ext

ende

d to

oils

eeds

, cop

ra a

nd p

ulse

s, w

ith n

odal

pr

ocur

emen

t age

ncie

s un

derta

king

phy

sica

l pro

cure

men

t and

farm

ers

rece

ivin

g th

e offi

cial

min

imum

su

ppor

t pric

es (M

SP) f

or th

eir c

rops

(see

MPP

U A

ug.’1

8 fo

r the

late

st K

harif

crop

MSP

rate

s). Im

porta

ntly,

PS

S pu

rcha

ses

will

only

be

effec

ted

up to

25

perc

ent o

f a s

tate

’s oi

lsee

ds p

rodu

ctio

n. S

econ

d, th

e C

entre

will

impl

emen

t a P

rice

Defic

ienc

y Pa

ymen

t Sch

eme

(PDP

S) e

arm

arke

d sp

ecifi

cally

for o

ilsee

ds.

Und

er th

e sc

hem

e, fa

rmer

s w

ill be

pai

d th

e di

ffere

nce

betw

een

the

rele

vant

MSP

and

act

ual s

ellin

g pr

ices

(rec

orde

d w

ithin

not

ified

per

iods

in s

peci

fied

mar

kets

), w

ith p

aym

ents

bei

ng m

ade

dire

ctly

into

fa

rmer

s’ b

ank

acco

unts

. Thi

rd, a

gain

oils

eed-

spec

ific

but t

his

time

at s

tate

-leve

l and

on

a pi

lot b

asis

on

ly, a

Priv

ate

Proc

urem

ent a

nd S

tock

ist S

chem

e (P

PSS)

will

be ro

lled

out i

n se

lect

dis

trict

s. U

nder

th

is s

chem

e, w

hen

mar

ket p

rices

dro

p be

low

MSP

leve

l, a

priv

ate

play

er c

an p

rocu

re c

rops

(in

notifi

ed

mar

kets

and

per

iods

) at

the

exis

ting

MSP

rat

es.

Subs

eque

ntly,

suc

h bu

yers

will

be c

ompe

nsat

ed

thro

ugh

a se

rvic

e ch

arge

equ

ival

ent t

o up

to 1

5 pe

rcen

t of t

he M

SP. R

egar

ding

PPS

S, m

arke

t exp

erts

po

inte

d ou

t tha

t pas

t exp

erie

nce

of e

ngag

ing

priv

ate

play

ers

in p

rocu

rem

ent o

pera

tions

for w

heat

and

ric

e ha

s be

en m

ixed

so

far,

with

com

mer

cial

via

bilit

y, de

lays

in s

tate

pay

men

ts a

nd s

tora

ge s

pace

sh

orta

ges

iden

tified

as

mai

n ch

alle

nges

.

14AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Prod

uctio

n su

ppor

t (in

cl.

proc

urem

ent s

chem

es)

Indi

aO

ctob

erO

ilcro

psFo

llow

ing

the

rece

nt la

unch

of a

new

pro

cure

men

t sch

eme

for o

ilsee

ds a

nd p

ulse

s (se

e M

PPU

Oct

.’18)

, th

e In

dian

Gov

ernm

ent

appr

oved

pro

posa

ls f

rom

11

stat

es f

or p

rocu

rem

ent

oper

atio

ns d

urin

g th

e Kh

arif

(sum

mer

cro

ps) m

arke

ting

year

tha

t st

arte

d in

Oct

ober

. Rep

orte

dly,

the

deci

sion

was

tak

en

afte

r sha

rp p

rice

falls

in k

ey g

row

ing

regi

ons.

Acc

ordi

ng to

offi

cial

sou

rces

, ove

r 2.6

milli

on to

nnes

of

oils

eeds

will

be p

rocu

red.

Oilcrops complex: Policy changes and industry measures - Annual compendium 2018 5

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n*15

AGRI

CU

LTU

RAL

SUPP

ORT

PO

LIC

IES

– Pr

oduc

tion

supp

ort (

incl

. pr

ocur

emen

t sch

emes

)

Indi

aO

ctob

erRa

pese

ed,

mus

tard

seed

, sa

fflow

erse

ed

In O

ctob

er,

the

Indi

an G

over

nmen

t an

noun

ced

the

new

sta

te-m

anda

ted

min

imum

pric

es f

or R

abi

(win

ter)

crop

s. F

or ra

pe a

nd m

usta

rdse

ed, t

he s

uppo

rt pr

ice

was

rais

ed b

y 5

perc

ent,

from

INR

40

000

per t

onne

to IN

R 42

000

(or U

SD 5

97),

whi

le th

e sa

fflow

erse

ed p

rice

saw

a 2

1 pe

rcen

t inc

reas

e,

from

INR

41 0

00 p

er to

nne

to IN

R 49

450

(or U

SD 7

03).

With

the

new

pric

e le

vels

, far

mer

retu

rns

are

deem

ed to

exc

eed

prod

uctio

n co

sts

by 9

0 pe

rcen

t in

the

case

of r

ape/

mus

tard

seed

and

50

perc

ent f

or

saffl

ower

seed

, whi

ch c

ompa

res

to e

stim

ated

mar

gins

of 1

13 p

erce

nt fo

r whe

at.

16AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Prod

uctio

n su

ppor

t (in

cl.

proc

urem

ent s

chem

es)

Indi

aDe

cem

ber

Oils

eeds

, oth

er

sele

cted

cro

psTh

e Pr

ivat

e Pr

ocur

emen

t and

Sto

ckie

st S

chem

e (P

PSS)

– la

unch

ed re

cent

ly b

y the

Fed

eral

Gov

ernm

ent

to e

nhan

ce th

e pr

ocur

emen

t of o

ilsee

ds a

nd o

ther

sele

cted

cro

ps (s

ee M

PPU

Oct

.’18)

– ha

s not

resu

lted

in c

oncr

ete

actio

ns, a

ccor

ding

to m

edia

repo

rts. M

eant

to e

ngag

e th

e pr

ivat

e se

ctor

in p

rocu

rem

ent

oper

atio

ns,

the

sche

me

was

set

to

be t

este

d vi

a ei

ght

pilo

t pr

ojec

ts in

diff

eren

t st

ates

. H

owev

er,

the

conc

erne

d st

ates

ref

rain

ed f

rom

sub

mitt

ing

pilo

ts,

citin

g la

ck o

f in

tere

st b

y pr

ivat

e op

erat

ors.

Re

porte

dly,

the

rule

that

the

rem

uner

atio

n of

priv

ate

parti

es c

anno

t exc

eed

15 p

erce

nt o

f the

rele

vant

m

inim

um s

uppo

rt pr

ice

(MSP

) – w

hile

mar

ket p

rices

for o

ilsee

ds a

re s

aid

to h

ave

drop

ped

20 p

erce

nt

belo

w s

tate

-man

date

d pr

ices

– h

as m

ade

the

sche

me

com

mer

cial

ly u

nvia

ble.

Und

er th

e PP

SS, p

rivat

e op

erat

ors

are

expe

cted

to b

ear a

ll ha

ndlin

g, s

tora

ge, d

istri

butio

n an

d sa

le c

osts

.

17AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Prod

uctio

n su

ppor

t (in

cl.

proc

urem

ent s

chem

es)

Mal

aysi

aO

ctob

erO

il pa

lmTa

x co

nces

sion

: G

over

nmen

t offi

cial

s in

form

ed th

at, u

nder

the

coun

try’s

new

ly in

trodu

ced

Sale

s an

d Se

rvic

e Ta

x (S

ST) r

egim

e, o

il pal

m g

row

ers

will

not b

e su

bjec

t to

taxa

tion.

As

oppo

sed

to th

e pr

evio

us

taxa

tion

sche

me,

whe

re a

Goo

ds a

nd S

ervi

ce T

ax (G

ST) w

as le

vied

on

both

loca

lly p

rodu

ced

and

impo

rted

fresh

oil

palm

frui

t bra

nche

s (F

FB),

the

SST

will

only

be

colle

cted

on

impo

rted

FFB,

so

as to

pr

otec

t the

inte

rest

s of

the

dom

estic

oil

palm

indu

stry

.

18AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Prod

uctio

n su

ppor

t (in

cl.

proc

urem

ent s

chem

es)

Mex

ico

Mar

chO

ilcro

psM

exic

o’s

fede

ral p

rogr

amm

e to

enc

oura

ge d

omes

tic o

ilsee

d pr

oduc

tion

(kno

wn

unde

r the

nam

e ‘P

ro-

Ole

agin

osas

’) re

mai

ns in

pla

ce in

201

8, w

ith p

rodu

cer p

aym

ents

sta

ying

at M

XN 7

00 (U

SD 3

5) p

er

tonn

e of

pro

duct

del

iver

ed to

dom

estic

pro

cess

ors

(as

oppo

sed

to M

XN 1

500

pro

vide

d tw

o ye

ars

back

). ‘P

roag

ro’,

a sc

hem

e pr

ovid

ing

farm

ers

with

liqu

idity

to in

vest

in p

rodu

ctiv

e ac

tiviti

es h

as a

lso

been

con

firm

ed, w

ith p

er-h

ecta

re a

lloca

tions

for s

mal

l, m

ediu

m-s

ize a

nd la

rge

farm

hol

ding

s ra

ised

by

, res

pect

ivel

y, 14

per

cent

, 33

perc

ent a

nd z

ero

perc

ent.

Whi

le a

gov

ernm

ent s

chem

e to

stim

ulat

e fo

rwar

d sa

les a

lso

rem

ains

in p

lace

, mar

ket p

artic

ipan

ts a

re re

porte

d to

favo

ur b

ette

r-pric

ed a

ltern

ativ

es

offer

ed b

y th

e do

mes

tic a

nd in

tern

atio

nal m

arke

t.

19AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Prod

uctio

n su

ppor

t (in

cl.

proc

urem

ent s

chem

es)

Mex

ico

May

Soyb

eans

, ra

pese

ed,

saffl

ower

seed

&

sele

cted

gra

ins

In M

ay, M

exic

o’s

Agric

ultu

ral M

inis

try in

crea

sed

the

targ

et p

rices

use

d to

det

erm

ine

supp

ort p

aym

ents

un

der i

ts in

com

e ta

rget

pro

gram

me

for g

rain

and

oils

eed

farm

ers

in th

e 20

17/1

8 fa

ll/w

inte

r and

201

8/19

sp

ring/

sum

mer

sea

sons

. Rep

orte

dly,

targ

et p

rices

hav

e be

en ra

ised

to o

ffset

incr

ease

s in

pro

duct

ion

cost

s. O

ilsee

d gr

ower

s ar

e ex

pect

ed to

ben

efit t

he m

ost,

with

targ

et p

rices

for s

oybe

an, r

apes

eed

and

saffl

ower

set

at M

XN 8

400

per

tonn

e (U

SD 4

42),

up 2

7 pe

rcen

t fro

m la

st s

easo

n’s

leve

l. In

add

ition

, to

hel

p pr

oduc

ers

cope

with

dep

ress

ed c

rop

pric

es, f

arm

ers

who

cho

se to

sel

l mai

ze, w

heat

, sor

ghum

an

d so

ybea

ns th

roug

h th

e M

inis

try’s

forw

ard

cont

ract

pro

gram

me

will

be e

ntitl

ed to

sub

sidi

es. U

nder

th

e la

tter p

rogr

amm

e, th

e bu

lk o

f the

fund

s ha

s be

en e

arm

arke

d fo

r gra

in p

rodu

cers

.

20AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Prod

uctio

n su

ppor

t (in

cl.

proc

urem

ent s

chem

es)

Uni

ted

Stat

esN

ovem

ber

All c

rops

, liv

esto

ckLe

gisl

ator

s fro

m th

e Se

nate

and

the

Low

er H

ouse

ann

ounc

ed th

at a

n ag

reem

ent i

n pr

inci

ple

has

been

re

ache

d on

the

2018

Far

m B

ill. T

he b

ill in

clud

es p

rogr

amm

es o

f crit

ical

impo

rtanc

e fo

r US

farm

ers.

The

la

st 5

-yea

r bill

expi

red

on 3

0 Se

ptem

ber 2

018,

and

law

mak

ers

have

unt

il the

end

of t

he c

urre

nt y

ear t

o fin

alize

the

appr

oval

pro

cess

.

6 Oilcrops complex: Policy changes and industry measures - Annual compendium 2018

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n*21

AGRI

CU

LTU

RAL

SUPP

ORT

PO

LIC

IES

– Pr

oduc

tion

supp

ort (

incl

. pr

ocur

emen

t sch

emes

)

Uni

ted

Stat

esDe

cem

ber

All c

rops

, liv

esto

ckIn

Dec

embe

r, Pr

esid

ent T

rum

p si

gned

into

law

a U

SD 8

67 b

illion

Far

m B

ill co

verin

g th

e fiv

e-ye

ar p

erio

d 20

19–2

023.

The

bill

will

cont

inue

to fu

nd k

ey fa

rm s

afet

y ne

t sch

emes

, whi

le re

new

ing

the

coun

try’s

dom

estic

foo

d ai

d pr

ogra

mm

e w

ithou

t si

gnifi

cant

cha

nges

. Th

e bi

ll re

auth

orize

s th

e ex

istin

g cr

op

insu

ranc

e an

d co

nser

vatio

n pr

ogra

mm

es a

nd w

ill fu

nd a

set

of t

rade

pro

mot

ion

mea

sure

s as

wel

l as

res

earc

h on

bio

ener

gy p

rodu

ctio

n an

d or

gani

c fa

rmin

g. F

arm

ers

will

have

the

opt

ion

to c

hoos

e be

twee

n th

e Ag

ricul

tura

l Ris

k C

over

age

and

Pric

e Lo

ss C

over

age

prog

ram

mes

in f

our

out

of fi

ve

year

s, to

mak

e su

re th

e to

ols

they

are

usi

ng a

re b

ette

r al

igne

d w

ith t

heir

risk

man

agem

ent

need

s.

The

bill

also

intro

duce

s a

num

ber o

f im

prov

emen

ts to

bot

h pr

ogra

mm

e pr

ices

and

yie

lds

to e

nhan

ce

the

effec

tiven

ess

of th

ese

tool

s. F

urth

erm

ore,

the

mar

ketin

g lo

an r

ates

of s

ever

al c

rops

hav

e be

en

incr

ease

d to

sup

port

farm

ers

who

nee

d to

acc

ess

low

-inte

rest

pos

t-har

vest

fina

ncin

g. T

he lo

an ra

te

for s

oybe

ans

has

been

rais

ed b

y 24

per

cent

, whi

le th

at fo

r gro

undn

uts

and

‘min

or o

ilsee

ds’ h

as b

een

left

unch

ange

d. T

he c

urre

nt li

mits

on

indi

vidu

al fa

rm s

ubsi

dies

hav

e be

en m

aint

aine

d.

22AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Prod

uctio

n su

ppor

t (in

cl.

proc

urem

ent s

chem

es)

Zim

babw

eM

aySo

ybea

nsIn

a b

id to

stim

ulat

e do

mes

tic s

oybe

an p

rodu

ctio

n, th

e G

over

nmen

t of Z

imba

bwe

has

rais

ed th

e pr

ice

for s

oybe

ans

deliv

ered

to th

e st

ate-

run

Gra

in M

arke

ting

Boar

d fro

m U

SD 6

10 to

USD

780

per

tonn

e.

Mea

nwhi

le, t

he c

ount

ry’s

oil c

rush

ers

are

seek

ing

perm

issi

on fr

om th

e G

over

nmen

t to

buy

soyb

eans

at

the

impo

rt pa

rity

pric

e of

USD

400

per

tonn

e, in

a b

id to

mai

ntai

n co

okin

g oi

l pric

es a

t a le

vel a

fford

able

to

con

sum

ers

(see

also

MPP

U S

ep.’1

7).

23AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Relie

f mea

sure

s

Aust

ralia

Augu

stAl

l cro

psIn

Aus

tralia

, a n

umbe

r of

fede

ral a

nd s

tate

-leve

l rel

ief p

acka

ges

to a

ssis

t far

mer

s hi

t by

this

yea

r’s

wid

espr

ead

drou

ght h

ave

been

ann

ounc

ed.

24AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Relie

f mea

sure

s

Euro

pean

U

nion

Augu

stAl

l cro

ps,

lives

tock

On

2 Au

gust

, the

Eur

opea

n C

omm

issi

on a

nnou

nced

set

of s

uppo

rt m

easu

res

for E

urop

ean

farm

ers

affec

ted

by t

he c

urre

nt s

easo

n’s

extre

me

drou

ght.

Farm

ers

will

be a

llow

ed t

o re

ceiv

e th

eir

dire

ct

and

rura

l dev

elop

men

t pa

ymen

ts e

arlie

r th

an s

ched

uled

and

hav

e be

en g

rant

ed m

ore

flexi

bilit

y in

us

ing

fallo

w la

nd a

nd o

ther

are

as th

at w

ould

nor

mal

ly n

ot b

e av

aila

ble

for p

rodu

ctio

n in

ord

er to

feed

th

eir

anim

als.

Add

ition

al s

uppo

rt ca

n be

pro

vide

d un

der

the

exis

ting

stat

e ai

d ru

les.

In p

artic

ular

, ex

traor

dina

ry p

urch

ases

of f

odde

r may

qua

lify f

or a

id in

cas

es o

f eith

er m

ater

ial d

amag

e or

inco

me

loss

. M

embe

r sta

tes

will

be a

llow

ed to

pro

vide

com

pens

atio

n fo

r dam

age

with

out n

otify

ing

the

Com

mis

sion

. Th

e EU

’s Ru

ral D

evel

opm

ent p

rogr

amm

e al

so p

rovi

des

a ra

nge

of p

ossi

bilit

ies

to a

ssis

t far

mer

s fa

cing

ex

cept

iona

l circ

umst

ance

s.

25AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Relie

f mea

sure

s

Uni

ted

Stat

esAu

gust

Cro

ps, l

ives

tock

pr

oduc

tsTr

ade

miti

gatio

n:

The

U.S

. Gov

ernm

ent

anno

unce

d a

set

of m

easu

res

to a

ssis

t fa

rmer

s su

fferin

g fro

m t

rade

dam

age

follo

win

g C

hina

’s in

trodu

ctio

n of

ret

alia

tory

tar

iffs

on c

erta

in U

S ag

ricul

tura

l ex

ports

. As

a on

e-tim

e, s

hort-

term

relie

f pac

kage

, USD

A ha

s be

en a

utho

rized

to im

plem

ent s

uppo

rt pr

ogra

mm

es w

orth

USD

12

billio

n, in

line

with

an

estim

ated

USD

11

billio

n im

pact

of C

hina

’s ne

w

tariff

s. T

o he

lp p

rodu

cers

mee

t the

cos

ts a

risin

g fro

m m

arke

t dis

rupt

ions

, thr

ee ty

pes

of m

easu

res

will

be im

plem

ente

d: i)

incr

emen

tal,

outp

ut-b

ased

pay

men

ts t

o pr

oduc

ers

of s

elec

ted

crop

s (in

clud

ing

soyb

eans

) to

com

pens

ate

farm

ers

for

pric

e-in

duce

d lo

sses

and

to

expa

nd n

ew m

arke

ts a

t ho

me

and

abro

ad; i

i) go

vern

men

t pur

chas

es o

f une

xpec

ted

surp

lus

of a

ffect

ed c

omm

oditi

es fo

r dis

tribu

tion

to p

ublic

nut

ritio

n pr

ogra

mm

es; a

nd ii

i) tra

de p

rom

otio

n ac

tiviti

es c

ondu

cted

in c

onju

nctio

n w

ith th

e pr

ivat

e se

ctor

to

assi

st in

dev

elop

ing

new

exp

ort

mar

kets

. Acc

ordi

ng t

o go

vern

men

t offi

cial

s, t

he

spec

ial a

id p

acka

ge c

ompl

ies

with

the

WTO

-man

date

d th

resh

olds

for t

rade

-dis

torti

ng fa

rm s

uppo

rt.

Whi

le fa

rmer

repr

esen

tativ

es w

elco

med

the

supp

ort m

easu

res,

they

als

o ex

pres

sed

conc

ern

abou

t the

lo

ng-te

rm ri

sks

asso

ciat

ed w

ith p

oten

tial e

xpor

t mar

ket l

osse

s.

Oilcrops complex: Policy changes and industry measures - Annual compendium 2018 7

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n*26

AGRI

CU

LTU

RAL

SUPP

ORT

PO

LIC

IES

– Re

lief m

easu

res

Uni

ted

Stat

esAu

gust

Cro

ps, l

ives

tock

pr

oduc

tsTr

ade

miti

gatio

n:

The

US

Gov

ernm

ent

prov

ided

det

ails

abo

ut it

s su

ppor

t pr

ogra

mm

e fo

r fa

rmer

s im

pact

ed b

y C

hina

’s in

trodu

ctio

n of

reta

liato

ry ta

riffs

(see

also

MPP

U A

ug.’1

8). T

o as

sist

farm

ers

to

mee

t the

cos

ts o

f dis

rupt

ed m

arke

ts, t

hree

mea

sure

s w

ill be

impl

emen

ted.

Fi

rst,

unde

r the

Mar

ket

Faci

litat

ion

Prog

ram

(MFP

), pr

oduc

ers

will

be g

rant

ed U

SD 4

.7 b

illion

of d

irect

pay

men

ts. R

ough

ly U

SD

3.6

milli

on h

ave

been

ear

mar

ked

for s

oybe

an p

rodu

cers

, with

the

rem

aind

er g

oing

to th

e so

rghu

m,

mai

ze,

whe

at,

cotto

n, d

airy

and

mea

t se

ctor

s. P

rogr

amm

e en

rolm

ent

unde

r M

FP o

pene

d on

4

Sept

embe

r and

will

clos

e in

Jan

uary

201

9. B

ased

on

the

seve

rity

of tr

ade

disr

uptio

n an

d th

e pe

riod

of

adju

stm

ent t

o ne

w tr

ade

patte

rns,

the

initi

al p

aym

ent r

ate

for s

oybe

ans

– th

e m

ost a

ffect

ed c

omm

odity

–

has

been

set

at U

SD 6

0.62

per

tonn

e, to

be

paid

on

half

of e

ach

prod

ucer

’s ac

tual

201

8 pr

oduc

tion.

Ad

ditio

nal p

aym

ents

will

be a

nnou

nced

in th

e co

min

g m

onth

s, if

war

rant

ed. M

FP p

aym

ents

per

farm

er

are

capp

ed a

t a c

ombi

ned

USD

125

000

for s

oybe

ans,

mai

ze, c

otto

n, s

orgh

um a

nd w

heat

. Sec

ond,

a

USD

1.2

billi

on F

ood

Purc

hase

and

Dis

tribu

tion

Prog

ram

will

proc

ure

vario

us im

pact

ed a

gric

ultu

ral

prod

ucts

– e

xclu

ding

soy

bean

s –

for

dist

ribut

ion

to r

ecip

ient

s th

roug

h ex

istin

g nu

tritio

n an

d ch

ild

assi

stan

ce s

chem

es. T

hird

, the

Agr

icul

tura

l Tra

de P

rom

otio

n Pr

ogra

m (U

SD 2

00 m

illion

) will

enab

le

elig

ible

sta

keho

lder

s to

iden

tify

and

deve

lop

new

exp

ort m

arke

ts fo

r all

affec

ted

com

mod

ities

on

a co

st-s

harin

g ba

sis.

Act

iviti

es e

nvis

aged

com

pris

e co

nsum

er a

dver

tisin

g, p

ublic

rela

tions

, poi

nt-o

f-sal

e de

mon

stra

tions

, tra

de fa

irs a

nd e

xhib

ition

s, m

arke

t res

earc

h, a

nd te

chni

cal a

ssis

tanc

e. T

he U

nite

d St

ates

’ ai

d pa

ckag

e pr

ovok

ed s

trong

inte

rest

am

ong

trade

par

tner

s. A

t th

e W

TO,

mem

ber

stat

es

aske

d fo

r det

ails

on

the

met

hodo

logy

of t

he p

rogr

amm

e, it

s du

ratio

n, a

nd it

s co

nsis

tenc

y w

ith W

TO

rule

s. T

he U

nite

d St

ates

stre

ssed

that

its

relie

f pro

gram

me

was

a o

ne-ti

me

mea

sure

, lim

ited

to th

e Se

ptem

ber

2018

–Jan

uary

201

9 pe

riod,

add

ing

that

it w

ould

not

ent

ail e

xpor

t sub

sidi

es n

or in

volv

e pu

blic

sto

ckho

ldin

g op

erat

ions

.

27AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Relie

f mea

sure

s

Uni

ted

Stat

esN

ovem

ber

Sele

cted

cro

ps,

lives

tock

Trad

e m

itiga

tion:

As

of m

id-N

ovem

ber,

USD

A pa

id o

ut n

early

USD

840

milli

on to

farm

ers,

as

part

of a

fir

st tr

anch

e of

pay

men

ts w

orth

USD

6 b

illion

inte

nded

to c

ompe

nsat

e fa

rmer

s fo

r los

ses

incu

rred

due

to C

hina

’s im

posi

tion

of ta

riffs

on U

.S. a

gric

ultu

ral e

xpor

ts (s

ee a

lso M

PPU

Aug

. & O

ct.’1

8). R

epor

tedl

y, so

ybea

ns,

whe

at,

mai

ze,

dairy

and

hog

pro

duce

rs b

enefi

tted

the

mos

t fro

m t

he s

ubsi

dies

. W

hile

de

tails

abo

ut a

sec

ond

USD

6 b

illion

tran

che

are

still

to b

e pr

ovid

ed, t

he U

SDA

confi

rmed

that

it h

as

no in

tent

ion

to re

new

the

aid

pack

age

in 2

019.

28AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Relie

f mea

sure

s

Uni

ted

Stat

esDe

cem

ber

Sele

cted

cro

ps,

lives

tock

Trad

e m

itiga

tion:

The

U.S

. Gov

ernm

ent h

as a

utho

rized

a s

econ

d ro

und

of p

aym

ents

from

the

USD

12

billi

on a

id p

acka

ge d

esig

ned

to c

ompe

nsat

e fa

rmer

s fo

r los

ses

incu

rred

due

to th

e Si

no-U

S tra

de

tens

ions

(see

MPP

U A

ug./O

ct./D

ec.’1

8). I

nclu

ding

the

addi

tiona

l dis

burs

emen

ts, U

SDA

expe

cts

dire

ct

paym

ents

to fa

rmer

s to

tota

l USD

9.6

billi

on, o

f whi

ch a

roun

d U

SD 7

.3 b

illion

will

be fo

r so

ybea

ns

grow

ers,

who

are

ent

itled

to re

ceiv

e U

SD 1

.65

per b

ushe

l (U

SD 6

0.62

per

tonn

e) o

n ha

lf of

thei

r act

ual

2018

pro

duct

ion.

In a

dditi

on, U

SD 1

.2 b

illion

hav

e be

en e

arm

arke

d fo

r foo

d pu

rcha

ses

and

arou

nd

USD

0.2

billi

on fo

r mea

sure

s to

dev

elop

fore

ign

mar

kets

.

29AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Se

ctor

dev

elop

men

t m

easu

res

Can

ada

Sept

embe

rRa

pese

edC

anad

a’s

Fede

ral G

over

nmen

t ann

ounc

ed u

p to

CAD

12.

1 m

illion

(USD

9.2

4 m

illion

) in

fund

ing

– ov

er

five

year

s –

to th

e co

untry

’s C

anol

a C

ounc

il un

der i

ts C

anad

ian

Agric

ultu

ral P

artn

ersh

ip p

rogr

amm

e.

The

rese

arch

inve

stm

ent,

whi

ch w

ill be

com

plem

ente

d w

ith C

AD 8

.1 m

illion

(USD

6.1

9 m

illion

) fro

m

the

indu

stry

, is

aim

ed a

t adv

anci

ng th

e se

ctor

’s gr

owth

and

pro

fitab

ility

by c

reat

ing

new

and

impr

oved

pr

oduc

ts. T

he fo

cus w

ill be

on:

ada

ptin

g fo

od p

roce

ssin

g te

chni

ques

; exp

lorin

g us

es fo

r rap

esee

d m

eal

in liv

esto

ck p

rodu

ctio

n; y

ield

opt

imiza

tion;

cro

p pr

otec

tion

from

pes

t; an

d di

ssem

inat

ion

activ

ities

. The

sc

hem

e is

exp

ecte

d to

con

tribu

te to

the

indu

stry

’s st

rate

gic

plan

of l

iftin

g C

anad

a’s

annu

al ra

pese

ed

outp

ut to

26

milli

on to

nnes

by

the

year

202

5. F

or c

ompa

rison

, thi

s ye

ar’s

prod

uctio

n is

est

imat

ed a

t a

reco

rd 2

1.3

milli

on to

nnes

.

8 Oilcrops complex: Policy changes and industry measures - Annual compendium 2018

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n*30

AGRI

CU

LTU

RAL

SUPP

ORT

PO

LIC

IES

–

Sect

or d

evel

opm

ent

mea

sure

s

Can

ada

Dece

mbe

rO

ilcro

psC

anad

a’s

Fede

ral G

over

nmen

t an

noun

ced

a C

AD 3

.7 m

illion

(USD

2.8

milli

on) i

nves

tmen

t in

to t

he

East

ern

Can

ada

Oils

eeds

Dev

elop

men

t Al

lianc

e, E

CO

DA. T

he f

unds

hav

e be

en e

arm

arke

d fo

r th

e fo

llow

ing

activ

ities

: i)

dev

elop

men

t of

new

oils

eed

crop

var

ietie

s fo

r ea

ster

n C

anad

a; ii

) pr

oduc

t in

nova

tion

to b

oost

mar

ket o

ppor

tuni

ties

and

valu

e ad

ded

prod

ucts

; iii)

impr

oved

land

use

and

cro

p ro

tatio

n op

tions

; and

iv) i

mpr

oved

pes

t res

ista

nce

and

soil

pres

erva

tion.

31AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Se

ctor

dev

elop

men

t m

easu

res

Chi

naFe

brua

rySo

y-fo

ods

& so

y-ba

sed

feed

Acco

rdin

g to

med

ia r

epor

ts,

in 2

018,

soy

food

man

ufac

ture

rs a

nd f

eed

prod

ucer

s in

Chi

na’s

Jilin

Pr

ovin

ce w

ill be

nefit

from

sta

te s

ubsi

dies

aim

ed a

t fos

terin

g th

e de

velo

pmen

t of s

oybe

an p

roce

ssin

g an

d fe

ed p

rodu

ctio

n in

the

coun

try’s

Nor

thea

st. T

he p

rovi

sion

of d

irect

supp

ort p

aym

ents

to sp

ecia

lized

lo

cal in

dust

ries

appe

ars

to b

e in

line

with

Chi

na’s

on-g

oing

pol

icy

re-o

rient

atio

n aw

ay fr

om n

atio

nwid

e cr

op p

rocu

rem

ent p

rogr

amm

es (s

ee a

lso M

PPU

Jun

e’16

). De

tails

on

the

amou

nt a

nd m

odal

ities

of t

he

paym

ents

are

stil

l to

be p

rovi

ded.

Rep

orte

dly,

soyb

ean

proc

esso

rs h

oldi

ng fo

od p

rodu

ctio

n lic

ense

s an

d ha

ving

an

annu

al c

apac

ity o

f mor

e th

an 5

000

tonn

es w

ould

be

elig

ible

for t

he s

ubsi

dies

.

32AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Se

ctor

dev

elop

men

t m

easu

res

Egyp

tJa

nuar

yO

live

oil,

oliv

esEg

ypt s

igne

d th

e Si

xth

Inte

rnat

iona

l Agr

eem

ent o

n O

live

Oil

and

Tabl

e O

lives

(see

MPP

U F

eb.’1

7),

ther

eby

rega

inin

g fu

ll m

embe

rshi

p in

the

Inte

rnat

iona

l Oliv

e C

ounc

il, IO

C. A

ccor

ding

to m

edia

repo

rts,

unde

r the

agr

eem

ent,

Egyp

t will

bene

fit fr

om fi

nanc

ial g

rant

s to

sup

port

dom

estic

oliv

e pr

oduc

tion,

in

clud

ing

a ne

w in

itiat

ive

to p

rom

ote

culti

vatio

n in

the

Wes

tern

Des

ert.

In re

cent

yea

rs, t

he c

ount

ry’s

partl

y ex

port-

orie

nted

oliv

e oi

l ind

ustry

has

exp

ande

d gr

adua

lly.

33AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Se

ctor

dev

elop

men

t m

easu

res

Euro

pean

U

nion

Febr

uary

Soyb

eans

&

othe

r pro

tein

cr

ops

As a

firs

t pha

se in

the

form

ulat

ion

of a

stra

tegy

for p

rom

otin

g pr

otei

n-ric

h cr

ops

(in p

artic

ular

soy

bean

s)

acro

ss t

he E

U,

the

Euro

pean

Com

mis

sion

has

sou

ght

the

view

s of

ind

ustry

exp

erts

and

oth

er

stak

ehol

ders

on

the

sect

or’s

stat

e of

pla

y. Th

e in

itiat

ive

stem

s fro

m c

once

rns

over

the

bloc

’s he

avy

relia

nce

on s

oybe

an im

ports

as

wel

l as

grow

ing

cons

umer

pre

fere

nce

for n

on-G

MO

food

and

feed

(see

al

so M

PPU

Jul

y &

Aug.

’17)

. Am

ong

othe

r thi

ngs,

the

Com

mis

sion

wis

hes

to a

sses

s th

e eff

ectiv

enes

s of

pol

icy

inst

rum

ents

suc

h as

vol

unta

ry c

oupl

ed s

uppo

rt, i.

e. th

e po

ssib

ility

of li

nkin

g di

rect

farm

er

supp

ort p

aym

ents

to th

e pr

oduc

tion

of p

rote

in c

rops

.

34AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Se

ctor

dev

elop

men

t m

easu

res

Euro

pean

U

nion

Nov

embe

rPr

otei

n-ric

h cr

ops

As p

art

of e

fforts

to

deve

lop

a st

rate

gy f

or p

rom

otin

g pr

otei

n-ric

h cr

ops

incl

udin

g so

ybea

ns (s

ee

MPP

U M

ar.’1

8), t

he E

urop

ean

Com

mis

sion

has

pub

lishe

d a

repo

rt th

at re

view

s th

e su

pply

and

dem

and

situ

atio

n fo

r pl

ant p

rote

ins

in th

e EU

and

exp

lore

s w

ays

to in

crea

se p

rodu

ctio

n in

an

econ

omic

ally

an

d en

viro

nmen

tally

sus

tain

able

man

ner.

The

repo

rt in

clud

es a

n an

alys

is o

f exi

stin

g an

d ne

w p

olic

y in

stru

men

ts to

hel

p re

alize

the

pote

ntia

l of p

rote

in c

rops

in th

e un

ion.

35AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Se

ctor

dev

elop

men

t m

easu

res

Fiji

Sept

embe

rC

ocon

utTh

e G

over

nmen

t of F

iji la

unch

ed a

pro

gram

me

to d

evel

op th

e co

untry

’s co

conu

t ind

ustry

and

enh

ance

th

e su

pply

of c

opra

. Rep

orte

dly,

inte

rven

tions

will

focu

s on

reju

vena

ting

the

coun

try’s

coco

nut p

alm

s,

larg

ely

rely

ing

on p

ublic

-priv

ate

partn

ersh

ips.

36AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Se

ctor

dev

elop

men

t m

easu

res

The

Gam

bia

Nov

embe

rG

roun

dnut

With

ass

ista

nce

from

the

Turk

ish

Coo

pera

tion

and

Coo

rdin

atio

n Ag

ency

(TIK

A), a

Gam

bian

gro

undn

ut

oil p

roce

ssin

g fa

ctor

y ha

s be

en e

quip

ped

with

a la

bora

tory

to te

st it

s pr

oduc

ts fo

r afla

toxi

n, a

fam

ily o

f to

xins

linke

d to

can

cer i

n hu

man

s. C

ontro

lling

aflat

oxin

con

tam

inat

ion

in g

roun

dnut

is e

xpec

ted

to h

elp

miti

gate

nat

iona

l hea

lth ri

sks

and

enha

nce

expo

rters

’ acc

ess

to th

e Eu

rope

an m

arke

t.

37AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Se

ctor

dev

elop

men

t m

easu

res

Indi

aJu

lyO

il pa

lmTh

e Gov

ernm

ent o

f Tel

anga

na S

tate

enco

urag

ed fa

rmer

s to

emba

rk o

n oi

l pal

m cu

ltiva

tion.

By p

rom

otin

g pa

lm o

il pr

oduc

tion

for t

he d

omes

tic m

arke

t, th

e lo

cal i

nitia

tive

wou

ld c

ontri

bute

to re

duci

ng In

dia’

s de

pend

ence

on

impo

rted

vege

tabl

e oi

ls. A

cros

s th

e st

ate,

283

000

ha

of la

nd h

ave

been

iden

tified

as

bein

g su

itabl

e fo

r oil

palm

cul

tivat

ion.

Oilcrops complex: Policy changes and industry measures - Annual compendium 2018 9

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n*38

AGRI

CU

LTU

RAL

SUPP

ORT

PO

LIC

IES

–

Sect

or d

evel

opm

ent

mea

sure

s

Indi

aSe

ptem

ber

Oilc

rops

With

a v

iew

to h

elp

redu

ce th

e co

untry

’s de

pend

ence

on

edib

le o

il im

ports

, the

Agr

icul

tura

l Min

istry

ha

s pr

opos

ed n

ew s

trate

gies

to ra

ise

dom

estic

oilc

rop

prod

uctio

n ov

er th

e ne

xt fo

ur y

ears

. Mea

sure

s en

visa

ged

incl

ude,

in a

larg

e sc

ale:

i) t

he p

rom

otio

n of

oils

eed

culti

vatio

n in

non

-trad

ition

al a

reas

, cr

oppi

ng se

ason

s and

stat

es; a

nd ii)

the

intro

duct

ion

of o

ilsee

d pr

oduc

tion

in ri

ce fa

llow

are

as d

urin

g th

e ra

bi s

easo

n. T

he M

inis

try p

ropo

sed

to p

rovi

de d

irect

ass

ista

nce

wor

th IN

R 3

000

to 5

000

(USD

41

to

68) p

er h

ecta

re –

in th

e fo

rm o

f agr

icul

ture

inpu

ts li

ke s

eed,

ferti

lizer

and

pes

ticid

es –

to fa

rmer

s w

ho

take

up

oilc

rop

prod

uctio

n as

an

inte

rcro

ppin

g m

odel

. Rec

ently

, the

Gov

ernm

ent d

ecid

ed to

mer

ge,

from

the

cur

rent

cro

p ye

ar, t

he N

atio

nal M

issi

on o

n O

ilsee

ds a

nd O

il Pa

lm w

ith it

s N

atio

nal F

ood

Secu

rity

Mis

sion

, who

se fo

rmer

cov

erag

e w

as li

mite

d to

rice

, whe

at a

nd p

ulse

s.

39AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Se

ctor

dev

elop

men

t m

easu

res

Indi

aN

ovem

ber

Gro

undn

utTh

e G

over

nmen

t of G

ujar

at s

tate

pla

ns to

ass

ist f

arm

ers

in s

ettin

g up

coo

pera

tives

to ru

n th

eir o

wn

grou

ndnu

t mills

and

oth

er v

alue

add

ition

uni

ts s

o as

to s

hiel

d fa

rmer

s fro

m m

arke

t pric

es fl

uctu

atio

ns

and

redu

ce th

eir d

epen

denc

e on

priv

ate

mille

rs.

40AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Se

ctor

dev

elop

men

t m

easu

res

Indo

nesi

aAp

rilO

il pa

lmTh

e In

done

sian

Gov

ernm

ent

pled

ged

to e

xpan

d a

coun

try-w

ide

oil

palm

rep

lant

ing

prog

ram

me

laun

ched

last

yea

r (se

e M

PPU

Dec

.’17)

to c

over

185

000

hec

tare

s of

sm

allh

olde

r pla

ntat

ions

in 2

018

– as

opp

osed

to

the

orig

inal

tar

get

of 2

0 00

0 he

ctar

es.

The

ultim

ate

goal

is t

o re

plac

e pa

lms

on

5.61

milli

on h

ecta

res

acro

ss th

e co

untry

. The

sch

eme’

s ob

ject

ive

is to

fost

er o

utpu

t gro

wth

am

ong

smal

lhol

ders

by

boos

ting

thei

r pro

duct

ivity

leve

l, th

ereb

y di

scou

ragi

ng e

nviro

nmen

tally

con

trove

rsia

l ex

pans

ion

of p

lant

ed a

rea.

Rep

laci

ng p

alm

tree

s ol

der t

han

25 y

ears

with

impr

oved

var

ietie

s co

uld

lift

aver

age

smal

lhol

der y

ield

s fro

m 2

–3 to

nnes

of p

alm

oil p

er h

a to

4 to

nnes

. The

Gov

ernm

ent’s

repl

antin

g pr

ogra

mm

e is

ent

irely

fina

nced

by

Indo

nesi

a’s

Oil P

alm

Pla

ntat

ion

Fund

(BPD

P-KS

), an

inst

rum

ent s

et

up in

201

5 to

man

age

a ne

w le

vy c

olle

cted

on

the

coun

try’s

palm

oil

expo

rts. I

n fa

ct, t

o da

te th

e bu

lk

of B

PDP-

KS fu

nds

has

been

allo

cate

d to

bio

dies

el s

ubsi

dies

– a

pol

icy

that

is b

eing

cha

lleng

ed b

y th

e co

untry

’s m

ain

unio

n of

pal

m o

il sm

allh

olde

rs. R

ecen

tly, a

lso

the

coun

try’s

anti-

graf

t age

ncy

has

calle

d fo

r a m

ore

bala

nced

dis

tribu

tion

of th

ose

fund

s am

ong

stak

ehol

ders

. Rep

orte

dly,

last

yea

r, BP

DP-K

S pr

ocee

ds fr

om le

vies

col

lect

ed o

n pa

lm o

il ex

ports

am

ount

ed to

IDR

14.2

trilli

on (U

SD 1

billi

on).

41AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Se

ctor

dev

elop

men

t m

easu

res

Indo

nesi

aSe

ptem

ber

Palm

oil

Com

plem

entin

g eff

orts

to ra

ise

dom

estic

dem

and

for p

alm

oil

(not

ably

for b

iodi

esel

pro

duct

ion)

, the

In

done

sian

Gov

ernm

ent i

s su

ppor

ting

initi

ativ

es to

est

ablis

h pa

lm o

il pr

oces

sing

faci

litie

s ov

erse

as.

Acco

rdin

g to

the

med

ia, j

oint

ven

ture

s to

set

up

refin

erie

s –

that

wou

ld s

ourc

e cr

ude

palm

oil p

rimar

ily

from

Indo

nesi

a –

in P

akis

tan

(for f

ood-

grad

e oi

l pro

duct

ion)

and

in th

e U

nite

d St

ates

and

Eur

ope

(for

avia

tion

fuel

pro

duct

ion)

hav

e be

en p

rom

oted

.

42AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Se

ctor

dev

elop

men

t m

easu

res

Mal

aysi

aSe

ptem

ber

Coc

onut

The

Mal

aysi

an G

over

nmen

t pl

ans

to s

et u

p a

spec

ial b

ody

to m

anag

e an

d re

gula

te t

he c

ount

ry’s

coco

nut i

ndus

try a

nd, i

n th

is c

onte

xt, s

ough

t adv

ice

from

oth

er c

ocon

ut p

rodu

cing

cou

ntrie

s in

Asi

a.

Whi

le th

e in

dust

ry is

bel

ieve

d to

hav

e go

od g

row

th p

oten

tial t

hank

s to

incr

ease

d de

man

d fo

r coc

onut

-ba

sed

prod

ucts

glo

bally

, pro

duce

rs f

ace

chal

leng

es in

pro

duct

ion

caus

ed b

y lo

w p

rodu

ctiv

ity a

nd

com

petit

ion

for l

and

with

oth

er c

rops

.

43AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Se

ctor

dev

elop

men

t m

easu

res

Mon

tene

gro

Mar

chO

live

oil

With

ass

ista

nce

from

the

Tur

kish

dev

elop

men

t co

oper

atio

n ag

ency

, M

onte

negr

o en

visa

ges

to

stre

ngth

en d

omes

tic o

live

oil p

rodu

ctio

n, in

a b

id to

pen

etra

te w

orld

mar

kets

mor

e eff

ectiv

ely.

Und

er

the

initi

ativ

e, lo

cal p

rodu

cers

will

rece

ive

train

ing

from

Tur

kish

exp

erts

on

new

pro

duct

ion

tech

niqu

es

conc

erni

ng fe

rtiliz

atio

n, ir

rigat

ion,

pru

ning

and

pes

t con

trol.

10 Oilcrops complex: Policy changes and industry measures - Annual compendium 2018

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n*44

AGRI

CU

LTU

RAL

SUPP

ORT

PO

LIC

IES

–

Sect

or d

evel

opm

ent

mea

sure

s

Paki

stan

April

Oliv

e tre

ePu

blic

effo

rts to

pro

mot

e ol

ive

tree

culti

vatio

n co

ntin

ue to

be

purs

ued

in d

iffer

ent p

arts

of t

he c

ount

ry

unde

r the

ove

rsig

ht o

f Pak

ista

n’s

Agric

ultu

ral R

esea

rch

Cou

ncil

(see

MPP

U O

ct.’1

5 &

Feb.

/Sep

.’16)

. In

Pun

jab

prov

ince

, fre

e-of

-cha

rge

dist

ribut

ion

of s

aplin

gs is

con

tinui

ng in

the

Poth

ohar

Pla

teau

and

th

e lo

cal g

over

nmen

t has

con

firm

ed it

s ta

rget

of p

lant

ing

2.4

milli

on tr

ees

by 2

020.

Elig

ible

gro

wer

s ar

e gi

ven

acce

ss to

sub

sidi

es a

nd tr

aini

ng p

rogr

amm

es. E

lsew

here

, in

Balo

chis

tan,

120

000

tree

s ar

e be

ing

plan

ted,

with

oliv

e pl

anta

tions

exp

ecte

d to

cov

er a

n ar

ea o

f app

roxi

mat

ely

5 70

0 he

ctar

es, w

hile

, in

Gilg

it-Ba

ltist

an, g

over

nmen

t offi

cial

s an

noun

ced

plan

s to

pla

nt th

ree

milli

on o

live

trees

as

part

of a

n en

viro

nmen

tal c

onse

rvat

ion

proj

ect.

Thes

e an

d pa

ralle

l initi

ativ

es c

once

rnin

g ra

pese

ed, s

unflo

wer

seed

an

d oi

l pal

m, a

re a

ll ai

med

at l

ower

ing

the

coun

try’s

depe

nden

ce o

n ve

geta

ble

oil i

mpo

rts.

45AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Se

ctor

dev

elop

men

t m

easu

res

the

Philip

pine

sJu

lyC

ocon

utA

cong

ress

iona

l bic

amer

al c

omm

ittee

has

app

rove

d a

bill c

reat

ing

a PH

P 10

0 bi

llion

(USD

1.8

6 bi

llion)

tru

st fu

nd to

be

used

ove

r 25

year

s to

the

bene

fit o

f the

cou

ntry

’s 3.

5 m

illion

coc

onut

farm

ers.

The

fu

nds

orig

inat

e pr

imar

ily f

rom

a le

vy c

olle

cted

fro

m c

ocon

ut f

arm

ers

durin

g th

e 19

70s

to s

uppo

rt th

e de

velo

pmen

t an

d re

habi

litat

ion

of t

he c

ount

ry’s

coco

nut

indu

stry

(se

e al

so M

PPU

Jan

.’15

& Ju

ly’16

). M

anag

ed b

y th

e Ph

ilippi

ne C

ocon

ut A

utho

rity,

the

fund

s w

ill be

ear

mar

ked

for t

he fo

llow

ing

activ

ities

: sch

olar

ship

pro

gram

mes

; sha

red

faci

litie

s; e

mpo

wer

men

t of c

ocon

ut fa

rmer

org

aniza

tions

an

d co

oper

ativ

es; h

ealth

sch

emes

; inf

rast

ruct

ure;

pla

ntin

g, re

plan

ting

and

esta

blis

hmen

t of n

urse

ries;

in

terc

ropp

ing;

rese

arch

& d

evel

opm

ent;

cred

it sc

hem

es; m

arke

ting

and

crea

tion

of n

ew p

rodu

cts;

and

fe

rtiliz

er d

istri

butio

n.

46AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Se

ctor

dev

elop

men

t m

easu

res

the

Uni

ted

Repu

blic

of

Tanz

ania

July

Oilc

rops

Repo

rtedl

y, th

e Ea

st A

frica

n na

tion

is p

ursu

ing

plan

s to

mod

erni

ze –

with

ass

ista

nce

from

Mal

aysi

a –

dom

estic

pro

duct

ion

of o

il pa

lm, s

unflo

wer

seed

, gro

undn

ut, s

esam

e, c

ocon

ut p

alm

and

coc

onut

, w

ith a

vie

w to

redu

ce th

e co

untry

’s de

pend

ence

on

edib

le o

il im

ports

and

impr

ove

the

livel

ihoo

d of

sm

allh

olde

r far

mer

s.

47AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Se

ctor

dev

elop

men

t m

easu

res

Uga

nda

Mar

chO

il pa

lmTh

e G

over

nmen

t of U

gand

a in

tend

s to

exp

and

its e

fforts

in p

rom

otin

g oi

l pal

m c

ultiv

atio

n ac

ross

the

coun

try in

par

tner

ship

with

UN

-age

ncy

IFAD

and

a g

roup

of p

rivat

e in

vest

ors.

As

part

of th

e co

untry

’s Ve

geta

ble

Oil

Deve

lopm

ent P

rogr

amm

e, o

il pa

lm c

ultiv

atio

n ha

s be

en d

evel

oped

sin

ce 2

005

in tw

o di

stric

ts (K

alan

gala

and

Buv

uma)

on

an a

rea

of 1

0 00

0 he

ctar

es, c

ompr

isin

g bo

th n

ucle

us e

stat

es

and

smal

lhol

der f

arm

s. R

epor

tedl

y, th

e pr

ojec

t attr

acte

d m

ultip

le in

vest

men

ts a

long

the

palm

oil

valu

e ch

ain,

cre

atin

g jo

bs a

nd im

prov

ing

loca

l liv

elih

oods

. Und

er a

sec

ond

phas

e, o

il pa

lm c

ultiv

atio

n is

ex

pect

ed to

con

cent

rate

on

four

regi

onal

hub

s, c

over

ing

43 n

ew d

istri

cts.

The

initi

ativ

e ha

s no

t bee

n sp

ared

fro

m s

crut

iny

by c

ivil

soci

ety

grou

ps,

whi

ch id

entifi

ed a

num

ber

chal

leng

es r

egar

ding

the

pr

ojec

t’s e

nviro

nmen

tal a

nd s

ocia

l sus

tain

abilit

y.

48AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Se

ctor

dev

elop

men

t m

easu

res

Uzb

ekis

tan

Janu

ary

Oils

, fat

sLo

cal m

edia

repo

rted

that

the

Gov

ernm

ent h

as is

sued

a ro

ad m

ap fo

r the

acc

eler

ated

dev

elop

men

t of

the

coun

try’s

oils

and

fats

indu

stry

. The

pla

n pr

ovid

es fo

r the

exp

ansi

on o

f the

indu

stry

’s re

sour

ce

base

and

the

mod

erni

zatio

n of

equ

ipm

ent u

sed.

Spe

cific

mea

sure

s in

clud

e a

one-

year

exe

mpt

ion

from

th

e pa

ymen

t of v

alue

add

ed ta

x fo

r oi

l/fat

man

ufac

ture

rs, b

egin

ning

in J

anua

ry 2

018.

Fur

ther

mor

e,

the

Gov

ernm

ent

wou

ld s

et a

fix

pric

e fo

r th

e sa

le o

f cot

tons

eed

oil t

o so

cial

ly v

ulne

rabl

e pa

rts o

f th

e po

pula

tion

(see

also

MPP

U D

ec.’1

7).

Such

pric

e w

ould

be

dete

rmin

ed t

akin

g in

to a

ccou

nt

man

ufac

ture

rs’ p

rodu

ctio

n an

d m

arke

ting

cost

s.

Oilcrops complex: Policy changes and industry measures - Annual compendium 2018 11

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n*49

AGRI

CU

LTU

RAL

SUPP

ORT

PO

LIC

IES

– Pe

st c

ontro

l mea

sure

s &

regu

latio

ns

Braz

ilAu

gust

Gly

phos

ate

In A

ugus

t, a

Braz

ilian

judg

e su

spen

ded

the

use

of p

rodu

ct c

onta

inin

g gl

ypho

sate

, a

herb

icid

e ex

tens

ivel

y em

ploy

ed fo

r soy

bean

s an

d ot

her c

rops

in B

razil

and

wor

ld-w

ide.

Und

er th

e in

junc

tion,

ex

istin

g an

d ne

w r

egis

tratio

ns o

f pr

oduc

ts c

onta

inin

g th

e ch

emic

al w

ere

to b

e su

spen

ded

as o

f Se

ptem

ber 2

018,

unt

il the

cou

ntry

’s he

alth

aut

horit

y AN

VISA

issu

ed th

e fin

ding

s fro

m it

s re

-eva

luat

ion

of t

he h

erbi

cide

’s sa

fety

. Ev

entu

ally,

afte

r Br

azil’s

Sol

icito

r G

ener

al fi

led

an a

ppea

l bac

ked

by t

he

Agric

ultu

re M

inis

try, a

rgui

ng th

at th

e su

spen

sion

wou

ld h

arm

farm

ers

and

pote

ntia

lly re

sult

in a

loss

of

arou

nd U

SD 2

5 bi

llion

in e

xpor

t ear

ning

s, th

e in

junc

tion

was

ove

rrule

d. T

he A

ppea

ls C

ourt

mai

ntai

ned

that

the

inju

nctio

n w

ould

har

m th

e co

untry

’s ec

onom

y.

50AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Pest

con

trol m

easu

res

& re

gula

tions

Can

ada

Augu

stN

icot

inoi

dsIn

Can

ada,

a fi

nal d

ecis

ion

on t

he p

hase

-out

and

virt

ual b

an o

f ou

tdoo

r ag

ricul

tura

l use

s of

thr

ee

pest

icid

es b

elon

ging

to

the

neon

icot

inoi

ds g

roup

is e

xpec

ted

next

yea

r (s

ee a

lso M

PPU

Dec

.’16)

. W

idel

y us

ed to

pro

tect

rape

seed

, soy

bean

s an

d ot

her c

rops

from

inse

ct a

ttack

, the

che

mic

als

have

be

en li

nked

to p

ollin

ator

dam

age

and

harm

to a

quat

ic e

nviro

nmen

ts. E

lsew

here

, tem

pora

ry b

ans

on

neo

nico

tinoi

ds a

re in

pla

ce in

the

EU, w

hile

no

com

para

ble

step

s ha

ve b

een

take

n in

the

Uni

ted

Stat

es

(see

also

MPP

U J

une’

17).

51AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Pest

con

trol m

easu

res

& re

gula

tions

East

Afri

can

Com

mun

ityAu

gust

Aflat

oxin

Mem

bers

of t

he E

ast A

frica

n C

omm

unity

pla

n to

dev

elop

a p

olic

y fra

mew

ork

to a

ddre

ss th

e hu

man

an

d an

imal

hea

lth t

hrea

ts p

osed

by

aflat

oxin

con

tam

inat

ion.

Rep

orte

dly,

aflat

oxin

s fro

m f

ungi

are

w

ides

prea

d in

the

regi

on a

nd c

ause

con

tam

inat

ion

of s

tapl

e fo

ods,

esp

ecia

lly g

roun

dnut

s. U

nder

the

initi

ativ

e, p

olic

y m

aker

s an

d ot

her s

take

hold

ers

will

be s

ensi

tized

on

the

need

and

pos

sibl

e m

easu

res

to p

reve

nt a

flato

xins

fro

m d

evel

opin

g an

d to

miti

gate

the

impa

ct o

f co

ntam

inat

ion.

If s

ucce

ssfu

lly

impl

emen

ted,

pre

vent

ion

and

cont

rol m

easu

res

have

the

pote

ntia

l to

enab

le in

tra-re

gion

al tr

ade

and

over

seas

exp

orts

of a

gric

ultu

ral p

rodu

cts.

52AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Pest

con

trol m

easu

res

& re

gula

tions

Euro

pean

U

nion

Janu

ary

Xyle

lla fa

stid

iosa

Firs

t det

ecte

d in

the

Sout

h of

Ital

y in

201

3, x

ylella

fast

idio

sa is

rega

rded

as

a m

ain

thre

at to

Eur

opea

n ol

ive

culti

vatio

n (s

ee a

lso M

PPU

Jan

.’18)

. Rec

ently

, the

Eur

opea

n C

omm

issi

on p

rovi

ded

the

follo

win

g up

date

rega

rdin

g th

e sp

read

of t

he d

isea

se:

i) Sp

ain,

the

wor

ld’s

larg

est o

live

oil p

rodu

cer,

notifi

ed a

fir

st o

utbr

eak

in 2

016

in th

e is

land

of M

allo

rca;

as

the

pest

sub

sequ

ently

spr

ead

acro

ss th

e Ba

lear

ic

Isla

nds,

in D

ecem

ber 2

017,

the

entir

e te

rrito

ry w

as d

ecla

red

as a

rea

unde

r con

tain

men

t and

mov

emen

t of

spe

cifie

d pl

ants

out

of

the

Bale

ares

is c

urre

ntly

not

aut

horiz

ed. I

n Ju

ne 2

017,

the

dis

ease

was

al

so d

etec

ted

on t

he Ib

eria

n Pe

nins

ula,

in A

lican

te (V

alen

cia)

, w

here

mov

emen

t re

stric

tions

are

in

plac

e; ii

) in

Italy,

the

dem

arca

ted

area

has

bee

n up

date

d on

sev

eral

occ

asio

ns a

nd s

urve

y ac

tiviti

es

are

ongo

ing;

in M

ay 2

015,

the

infe

cted

zon

e w

as d

ecla

red

area

und

er c

onta

inm

ent;

mov

emen

t of

sp

ecifi

ed p

lant

s ou

t of

the

dem

arca

ted

area

is c

urre

ntly

not

aut

horiz

ed;

iii) in

Fra

nce,

aut

horit

ies

repo

rted

a fir

st o

utbr

eak

on th

e Is

land

of C

orsi

ca in

201

5; s

ince

then

, add

ition

al o

utbr

eaks

hav

e be

en

dete

cted

in P

rove

nce-

Alpe

s-C

ôte

d’Az

ur (P

ACA)

; whi

le s

urve

y ac

tiviti

es c

ontin

ue, t

he e

ntire

terri

tory

of

Cor

sica

was

dec

lare

d as

are

a un

der c

onta

inm

ent i

n De

cem

ber 2

017,

and

the

mov

emen

t of s

peci

fied

plan

ts o

ut o

f Cor

sica

and

PAC

A is

cur

rent

ly n

ot a

utho

rized

.; iv

) in

Ger

man

y, au

thor

ities

not

ified

an

isol

ated

cas

e of

the

dise

ase

in J

une

2016

in S

axon

y; v

) as

for t

he re

st o

f the

EU

terri

tory

, all

mem

ber

stat

es m

ust

carry

out

ann

ual s

urve

ys f

or t

he p

rese

nce

of t

he d

isea

se in

the

ir te

rrito

ry in

volv

ing

a lis

t of s

peci

fied

plan

ts.

On

a re

late

d no

te, l

ast D

ecem

ber,

the

10 c

ount

ries

mos

t dire

ctly

thre

aten

ed

by t

he d

isea

se a

gree

d on

a r

oadm

ap a

imed

at

rein

forc

ing

mea

sure

s to

pre

vent

and

con

trol t

he

dise

ase

(see

MPP

U J

an.’1

8). T

he ro

adm

ap fo

cuse

s on

thre

e m

ain

area

s: i

) kno

wle

dge

impr

ovem

ent

thro

ugh

the

supp

ort

of a

pplie

d re

sear

ch p

rogr

amm

es;

ii) in

crea

sing

sur

veilla

nce

to e

nsur

e ea

rly

dete

ctio

n an

d ra

pid

erad

icat

ion

of n

ew o

utbr

eaks

; and

iii)

awar

enes

s ra

isin

g an

d in

form

atio

n ac

tions

.

12 Oilcrops complex: Policy changes and industry measures - Annual compendium 2018

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n*53

AGRI

CU

LTU

RAL

SUPP

ORT

PO

LIC

IES

– Pe

st c

ontro

l mea

sure

s &

regu

latio

ns

Euro

pean

U

nion

April

Nic

otin

oids

EU M

embe

r Sta

tes’

repr

esen

tativ

es b

acke

d a

prop

osal

by

the

Euro

pean

Com

mis

sion

to fu

rther

rest

rict

the

use

of t

hree

sub

stan

ces

know

n as

nic

otin

oids

, fo

r w

hich

a s

cien

tific

revi

ew b

y th

e Eu

rope

an

Food

Saf

ety

Auth

ority

fou

nd t

hat

thei

r ou

tdoo

r us

e ha

rms

bees

(see

also

MPP

U F

eb. &

Jun

e’18

). N

icot

inoi

ds h

ave

been

wid

ely

empl

oyed

in a

gric

ultu

re –

in p

artic

ular

in ra

pese

ed c

ultiv

atio

n –

over

the

past

20

yea

rs. T

he n

ew re

stric

tions

go

beyo

nd th

e m

easu

res

alre

ady

in p

lace

sin

ce 2

013,

in th

at a

ll ou

tdoo

r use

s of

the

chem

ical

s w

ill be

ban

ned.

The

regu

latio

n is

exp

ecte

d to

com

e in

to fo

rce

by th

e en

d of

the

year

. Ind

ivid

ual M

embe

r Sta

tes

may

gra

nt e

mer

genc

y ex

cept

ions

for r

estri

cted

use

s of

the

chem

ical

s.

54AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Pest

con

trol m

easu

res

& re

gula

tions

Uni

ted

Stat

esJu

lyG

lyph

osat

eIn

Jul

y, a

fede

ral j

udge

rul

ed t

hat

law

suits

link

ing

glyp

hosa

te u

se t

o ca

ncer

cou

ld p

roce

ed t

o tri

al.

Sepa

rate

ly, in

Aug

ust,

a fe

dera

l cou

rt aw

arde

d U

SD 2

89 m

illion

to a

man

who

cla

imed

that

his

can

cer

was

cau

sed

by p

rolo

nged

con

tact

with

gly

phos

ate.

Acc

ordi

ng to

the

rulin

g, th

e he

rbic

ide’

s pr

oduc

er

faile

d to

war

n us

ers

abou

t the

can

cer r

isks

pos

ed b

y th

e pr

oduc

t.

55AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Pest

con

trol m

easu

res

& re

gula

tions

Uni

ted

Stat

esSe

ptem

ber

Dica

mba

The

U.S

. Env

ironm

enta

l Pro

tect

ion

Agen

cy (E

PA) i

s ex

pect

ed to

soo

n re

leas

e its

dec

isio

n on

whe

ther

to

ren

ew it

s lic

ense

for

dica

mba

, a w

eed

kille

r in

crea

sing

ly u

sed

in G

M s

oybe

an a

nd c

otto

n fie

lds

(see

also

MPP

U O

ct.’1

7, D

ec.’1

7 &

Jan.

’18)

. Rep

orte

dly,

som

e in

dust

ry re

pres

enta

tives

urg

ed E

PA to

lim

it th

e he

rbic

ide’

s us

e to

the

sprin

g m

onth

s, i.

e. b

efor

e cr

ops

are

plan

ted.

On

a re

late

d no

te, a

U.S

. Ap

peal

s C

ourt

is lo

okin

g in

to c

laim

s th

at E

PA fa

iled

to a

naly

se th

e ris

ks d

icam

ba a

pplic

atio

ns p

osed

to

nea

rby

crop

s w

hen

it re

new

ed th

e he

rbic

ides

’ lic

ense

two

year

s ag

o.

56AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Pest

con

trol m

easu

res

& re

gula

tions

Uni

ted

Stat

esO

ctob

erG

lyph

osat

eA

U.S

. cou

rt co

nfirm

ed a

n ea

rlier

ver

dict

that

foun

d gl

ypho

sate

-bas

ed h

erbi

cide

s re

spon

sibl

e fo

r a

man

’s te

rmin

al c

ance

r, bu

t de

cide

d to

low

er t

he U

SD 2

50 m

illion

pun

itive

dam

ages

por

tion

of t

he

awar

d to

USD

39

milli

on (s

ee a

lso M

PPU

Oct

.’18)

.

57AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Pest

con

trol m

easu

res

& re

gula

tions

Uni

ted

Stat

esN

ovem

ber

Dica

mba

In t

he U

nite

d St

ates

, the

use

of d

icam

ba-b

ased

her

bici

des

has

been

re-

auth

orize

d fo

r a

perio

d of

tw

o ye

ars

(see

also

MPP

U O

ct.’1

8). T

he U

.S. E

nviro

nmen

tal P

rote

ctio

n Ag

ency

ext

ende

d, u

ntil

20

Dece

mbe

r 202

0, th

e re

gist

ratio

n fo

r ove

r-the

-top

use

(i.e.

use

on

grow

ing

plan

ts) o

f dic

amba

to c

ontro

l w

eeds

in fi

elds

of s

oybe

an a

nd c

otto

n ge

netic

ally

mod

ified

to re

sist

the

herb

icid

e. To

min

imize

pot

entia

l off

-site

dam

age

to n

on-ta

rget

ed c

rops

, the

aut

horiz

atio

n in

clud

es p

rovi

sion

s lim

iting

the

num

ber o

f al

low

ed a

pplic

atio

ns a

s w

ell a

s th

e pe

riod

and

times

of t

he d

ay w

hen

the

herb

icid

e ca

n be

app

lied.

58BI

OFU

EL P

OLI

CIE

SAr

gent

ina

May

Biod

iese

lIn

May

, th

e Ar

gent

ine

Gov

ernm

ent

rais

ed t

he e

xpor

t ta

x on

(so

ybea

n oi

l-bas

ed)

biod

iese

l fro

m

8 pe

rcen

t to

15 p

erce

nt, e

ffect

ive

1 Ju

ly 2

018.

The

upw

ard

adju

stm

ent w

as a

imed

at b

ringi

ng th

e ta

x cl

oser

to th

e ex

port

duty

for s

oybe

an o

il, w

hich

, in

May

, sto

od a

t 24.

5 pe

rcen

t. Pa

st d

uty

diffe

rent

ials

w

ere

amon

g th

e re

ason

s th

at le

d th

e U

nite

d St

ates

to im

pose

cou

nter

vailin

g an

d an

ti-du

mpi

ng d

utie

s on

bio

dies

el im

ports

from

Arg

entin

a an

d th

e EU

to la

unch

a n

ew in

vest

igat

ion

on w

heth

er A

rgen

tine

prod

ucer

s be

nefit

from

sta

te s

ubsi

dies

(see

MPP

U M

ay’1

8). T

he h

ighe

r ex

port

duty

is e

xpec

ted

to

mak

e it

mor

e di

fficu

lt to

sel

l Arg

entin

e bi

odie

sel t

o co

untri

es w

here

ble

ndin

g oc

curs

on

a di

scre

tiona

ry

rath

er th

an m

anda

tory

bas

is. R

egar

ding

Arg

entin

a’s

inte

rnal

mar

ket,

priv

ate

sour

ces

repo

rted

that

the

Gov

ernm

ent

is c

onsi

derin

g to

rai

se t

he c

ount

ry’s

man

dato

ry b

iodi

esel

ble

ndin

g ra

te fr

om c

urre

ntly

10

per

cent

to 1

2 pe

rcen

t (an

d ev

entu

ally

15

perc

ent),

in a

bid

to fo

ster

dom

estic

con

sum

ptio

n.

59BI

OFU

EL P

OLI

CIE

SAr

gent

ina

Sept

embe

rBi

odie

sel

Durin

g th

e Au

gust

–Sep

tem

ber p

erio

d, th

e go

vern

men

t-set

pric

e th

at o

il co

mpa

nies

nee

d to

pay

for

biod

iese

l has

bee

n ra

ised

thric

e, re

achi

ng A

RS 2

6 50

9 (U

SD 7

25) p

er to

nne

as o

f 10

Sept

embe

r 201

8.

Repo

rtedl

y, th

e ad

just

men

ts w

ere

trigg

ered

by

the

rece

nt c

hang

es in

the

Arge

ntin

a’s

expo

rt ta

x fo

r so

ybea

n oi

l, th

e co

untry

’s m

ain

biod

iese

l fee

dsto

ck.

Oilcrops complex: Policy changes and industry measures - Annual compendium 2018 13

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n*60

BIO

FUEL

PO

LIC

IES

Arge

ntin

aN

ovem

ber

Biod

iese

lAf

ter u

pwar

d ad

just

men

ts in

Aug

ust a

nd S

epte

mbe

r 201

8 (s

ee M

PPU

Oct

.’18)

, the

gov

ernm

ent-s

et

pric

e th

at o

il co

mpa

nies

are

requ

ired

to p

ay fo

r bio

dies

el h

as b

een

rais

ed fu

rther

to A

RS 2

7 52

9 pe

r to

nne

(USD

733

) in

Oct

ober

and

ARS

28

112

(USD

748

) in

Nov

embe

r 201

8.

61BI

OFU

EL P

OLI

CIE

SBr

azil

Febr

uary

Biod

iese

lFo

llow

ing

reco

mm

enda

tions

mad

e by

Bra

zil’s

Nat

iona

l Ene

rgy

Polic

y C

ounc

il (C

NPE

), th

e G

over

nmen

t ra

ised

the

natio

nwid

e m

anda

tory

ble

ndin

g ra

te fo

r bio

dies

el fr

om 8

per

cent

to 1

0 pe

rcen

t (se

e al

so

MPP

U D

ec.’1

7). F

rom

1 M

arch

201

8, a

ll pet

role

um d

iese

l is re

quire

d to

incl

ude

10 p

erce

nt o

f veg

etab

le

oil-b

ased

die

sel.

Whi

le b

iodi

esel

man

ufac

ture

rs c

an u

se a

ny v

eget

able

oil

as fe

edst

ock,

the

sha

re

of s

oybe

an o

il in

tota

l fee

dsto

ck u

ptak

e re

mai

ns c

appe

d at

80

perc

ent.

Furth

erm

ore,

one

-fifth

of a

ll fe

edst

ock

mus

t be

sour

ced

from

sm

all f

amily

farm

s. T

he h

ighe

r man

date

is e

stim

ated

to ra

ise

Braz

il’s

annu

al b

iodi

esel

con

sum

ptio

n by

alm

ost 3

0 pe

rcen

t – fr

om 3

.8 m

illion

to 4

.9 m

illion

tonn

es, a

ccor

ding

to

indu

stry

est

imat

es. D

urin

g 20

18, t

he b

iofu

el in

dust

ry’s

upta

ke o

f soy

bean

oil i

s fo

reca

st a

t 3.7

milli

on

tonn

es, w

hich

com

pare

s to

2.9

milli

on to

nnes

in 2

017.

Acc

ordi

ngly,

dom

estic

soy

bean

cru

sh re

late

d to

bio

dies

el w

ould

ris

e fro

m 1

4.5

milli

on t

o 18

.5 m

illion

ton

nes.

Rep

orte

dly,

for

2019

and

bey

ond,

fu

rther

incr

ease

s in

the

coun

try’s

man

dato

ry b

lend

ing

rate

are

env

isag

ed, c

ondi

tiona

l upo

n po

sitiv

e te

st r

esul

ts o

n m

otor

eng

ines

. The

indu

stry

’s cu

rrent

ble

ndin

g ca

paci

ty is

rep

orte

d to

be

arou

nd 7

m

illion

tonn

es p

er y

ear,

whi

ch w

ould

be

com

patib

le w

ith h

ighe

r ble

ndin

g ra

tes.

62BI

OFU

EL P

OLI

CIE

SBr

azil

July

Biod

iese

lSt

rivin

g to

exp

and

dom

estic

bio

dies

el c

onsu

mpt

ion,

the

Braz

ilian

Gov

ernm

ent h

as ra

ised

the

allo

wed

vo

lunt

ary p

erce

ntag

e of

bio

dies

el m

ixtu

re in

regu

lar d

iese

l for

cer

tain

gro

ups o

f use

rs. L

arge

con

sum

ers

serv

ed b

y th

eir

own

poin

t of

sup

ply

(suc

h as

car

riers

and

tra

nspo

rt co

mpa

nies

) are

now

allo

wed

ad

mix

ture

rate

s of

up

to 2

0 pe

rcen

t, w

here

as n

ew ra

tes

of 3

0 pe

rcen

t hav

e be

en s

et fo

r agr

icul

tura

l, in

dust

rial a

nd ra

il us

es, a

nd 1

00 p

erce

nt fo

r exp

erim

enta

l and

oth

er s

peci

al a

pplic

atio

ns. T

he n

atio

n-w

ide

man

dato

ry b

lend

ing

rate

for r

egul

ar tr

ansp

ort d

iese

l rem

ains

unc

hang

ed a

t 10

perc

ent.

63BI

OFU

EL P

OLI

CIE

SBr

azil

Oct

ober

Biod

iese

lTh

e N

atio

nal C

ounc

il for

Ene

rgy

Polic

ies

prop

osed

a g

radu

al in

crea

se fr

om 1

0 pe

rcen

t to

15 p

erce

nt in

th

e m

anda

tory

shar

e of

bio

dies

el in

regu

lar t

rans

port

dies

el c

onsu

med

in B

razil

. The

pro

posa

l env

isag

es

annu

al in

crea

ses

by 1

per

cent

sta

rting

in J

une

2019

. The

add

ition

al 5

per

cent

ble

ndin

g w

ould

rais

e Br

azil’s

bio

dies

el c

onsu

mpt

ion

by a

ppro

xim

atel

y 85

per

cent

bet

wee

n 20

18 a

nd 2

023,

lifti

ng n

atio

nal

biod

iese

l pro

duct

ion

to 8

.8 m

illion

tonn

es –

com

pare

d to

the

curre

nt le

vel o

f 4.8

milli

on to

nnes

. To

date

, so

ybea

n oi

l has

bee

n th

e pr

inci

pal f

eeds

tock

use

d.

64BI

OFU

EL P

OLI

CIE

SC

olom

bia

Mar

chBi

odie

sel

On

1 M

arch

201

8, C

olom

bia’

s m

anda

ted

blen

d lim

it fo

r bio

fuel

in p

etro

l and

die

sel h

as b

een

rais

ed

in a

bid

to c

urb

CO

2 em

issi

ons

in th

e co

untry

’s ci

ties

and

addr

ess

over

supp

ly p

robl

ems

that

thre

aten

to

dis

rupt

pro

duct

ion

of b

iofu

els

and

thei

r res

pect

ive

feed

stoc

k. T

he re

quire

d m

ix o

f pal

m o

il-ba

sed

dies

el in

regu

lar d

iese

l has

bee

n ra

ised

to 1

0 pe

rcen

t and

app

lies

thro

ugho

ut th

e co

untry

. Pre

viou

sly,

man

date

s ra

nged

from

2 p

erce

nt to

9 p

erce

nt, d

epen

ding

on

the

regi

on.

14 Oilcrops complex: Policy changes and industry measures - Annual compendium 2018

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n*65

BIO

FUEL

PO

LIC

IES

Euro

pean

U

nion

Janu

ary

Biod

iese

lW

ith r

egar

d to

the

pen

ding

ref

orm

of

the

EU’s

Rene

wab

le E

nerg

y Di

rect

ive

(RED

), th

e Eu

rope

an

Parli

amen

t vot

ed in

favo

ur o

f a p

ropo

sal t

hat w

ould

free

ze p

rodu

ctio

n of

cro

p-ba

sed

biof

uels

at 2

017

leve

ls, w

hile

cap

ping

thei

r sha

re in

tota

l roa

d/ra

il tra

nspo

rt fu

els

at 7

per

cent

. At t

he s

ame

time,

the

join

t sh

are

of “

adva

nced

” fu

els

(defi

ned

as fu

els

with

a lo

wer

impa

ct o

n la

nd u

se),

was

te-b

ased

bio

fuel

s,

rene

wab

le e

lect

ricity

and

fuel

s of

non

-bio

logi

cal o

rigin

sho

uld

amou

nt to

at l

east

1.5

per

cent

in 2

021,

ris

ing

to 1

0 pe

rcen

t in

203

0. F

urth

erm

ore,

EU

law

mak

ers

prop

osed

to

rem

ove,

by

2021

, pal

m o

il-ba

sed

biod

iese

l fro

m th

e lis

t of b

iofu

els

that

cou

nt to

war

ds th

e bl

oc’s

rene

wab

le fu

el ta

rget

s (w

hile

all

othe

r veg

etab

le o

ils c

ould

be

used

as

feed

stoc

k un

til 2

030)

. Lik

ely

mar

king

the

end

of th

e EU

’s pa

lm-

base

d di

esel

impo

rts, t

he la

tter p

ropo

sal a

ttrac

ted

stro

ng c

ritic

ism

from

pal

m o

il pro

duci

ng c

ount

ries

in

Sout

heas

t Asi

a. A

s fo

r the

blo

c’s

over

all r

enew

able

ene

rgy

targ

ets,

the

Parli

amen

t’s p

ropo

sal e

nvis

ages

th

at, b

y 20

30, a

min

imum

of 3

5 pe

rcen

t of t

otal

ene

rgy

cons

umpt

ion

com

es fr

om re

new

able

sou

rces

, w

hile

the

shar

e of

rene

wab

les

in tr

ansp

ort s

houl

d be

at l

east

12

perc

ent.

Mor

eove

r, en

ergy

effi

cien

cy

wou

ld n

eed

to b

e ra

ised

by

35 p

erce

nt. T

he fi

nal s

hape

of t

he E

U’s

RED

will

only

em

erge

afte

r trip

artit

e ne

gotia

tions

hav

e ta

ken

plac

e be

twee

n th

e Pa

rliam

ent,

the

Com

mis

sion

and

the

Cou

ncil

of M

inis

ters

(s

ee a

lso M

PPU

Dec

.’16,

Jun

e’17

& J

an.’1

8).

66BI

OFU

EL P

OLI

CIE

SEu

rope

an

Uni

onJu

neBi

odie

sel

In m

id-J

une,

the

EU’s

Parli

amen

t, C

ounc

il and

Com

mis

sion

reac

hed

a pr

ovis

iona

l, in

form

al a

gree

men

t re

gard

ing

the

bloc

’s re

new

able

ene

rgy

polic

y af

ter 2

020.

The

pac

kage

, whi

ch is

par

t of a

bro

ader

pol

icy

aim

ed a

t red

ucin

g th

e bl

oc’s

GH

G e

mis

sion

leve

ls c

ompr

ises

: i) b

indi

ng o

vera

ll an

d se

ctor

-spe

cific

ta

rget

s fo

r ren

ewab

le e

nerg

y us

e; ii)

cap

s on

the

amou

nt o

f cro

p-ba

sed

(or ‘

first

gen

erat

ion’

) bio

fuel

s in

tra

nspo

rt at

202

0 le

vels

, with

a m

axim

um o

f 7 p

erce

nt; i

ii) am

bitio

us a

nd b

indi

ng ta

rget

s fo

r ‘ad

vanc

ed’

biof

uels

; iv)

sig

nific

ant,

man

dato

ry p

rese

nce

of w

aste

-bas

ed b

iofu

els,

suc

h as

use

d co

okin

g oi

l and

an

imal

fats

; and

v) a

free

ze o

n th

e us

e of

bio

fuel

s th

at b

ring

abou

t stro

ng in

dire

ct la

nd u

se c

hang

es

(ILU

C) a

t 201

9 le

vels

, with

a m

anda

tory

pha

se-o

ut b

y en

d-20

30. W

ith re

gard

to th

e la

tter p

oint

, the

Eu

rope

an C

omm

issi

on h

as b

een

assi

gned

the

resp

onsi

bilit

y to

dev

elop

– b

y Fe

brua

ry 2

019

– a

prec

ise

met

hodo

logy

to d

efine

the

‘gre

en c

rede

ntia

ls’ o

f ind

ivid

ual b

iofu

els,

so

as to

dis

tingu

ish

high

-ris

k IL

UC

bi

ofue

ls p

rodu

ced

on h

igh

carb

on-s

tock

land

from

oth

ers

prod

uced

with

low

er ri

sk o

f cau

sing

adv

erse

eff

ects

. Whi

le it

rem

ains

to b

e se

en h

ow in

divi

dual

bio

fuel

feed

stoc

k w

ill be

affe

cted

und

er th

e ne

w

clas

sific

atio

n, M

alay

sia

and

Indo

nesi

a st

ated

that

they

wou

ld c

onsi

der r

etal

iato

ry m

easu

res

in c

ase

palm

oil-

base

d fu

el fe

ll un

der t

he ‘h

igh-

ILU

C/lo

w s

usta

inab

ility’

cat

egor

y, ad

ding

that

they

con

side

r th

e EU

’s en

visa

ged

mea

sure

s ar

e di

scrim

inat

ory.

Mea

nwhi

le, t

he tw

o pa

lm o

il pr

oduc

ers

inte

nsifi

ed

thei

r effo

rts to

iden

tify

new

mar

kets

for t

heir

biof

uel e

xpor

ts. F

urth

erm

ore,

repr

esen

tativ

es fr

om th

e EU

bio

fuel

indu

stry

que

stio

ned

the

ratio

nale

for r

estri

ctin

g th

e co

ntrib

utio

n of

thos

e fir

st g

ener

atio

n bi

ofue

ls th

at c

an b

e pr

oduc

ed in

a s

usta

inab

le m

anne

r. Th

e te

xt o

f the

new

EU

dire

ctiv

e st

ill ha

s to

be

form

ally

app

rove

d by

the

Euro

pean

Par

liam

ent a

nd th

e C

ounc

il, fo

llow

ing

whi

ch th

e bl

oc’s

mem

ber

stat

es w

ould

hav

e 18

mon

ths

to tr

ansp

ose

the

dire

ctiv

e in

to n

atio

nal l

aw.

67BI

OFU

EL P

OLI

CIE

SEu

rope

an

Uni

onN

ovem

ber–

Dece

mbe

rBi

ofue

lsTh

e EU

’s C

ounc

il an

d Pa

rliam

ent h

ave

form

ally

app

rove

d ke

y ch

apte

rs o

f the

blo

c’s

bioe

nerg

y po

licy

refo

rm, i

nclu

ding

the

plan

to p

hase

-out

, by

2030

, the

con

sum

ptio

n of

cro

p-ba

sed

biof

uels

that

brin

g ab

out s

trong

indi

rect

land

use

cha

nges

(see

also

MPP

U A

ug.’1

8).

Oilcrops complex: Policy changes and industry measures - Annual compendium 2018 15

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n*65

BIO

FUEL

PO

LIC

IES

Euro

pean

U

nion

Janu

ary

Biod

iese

lW

ith r

egar

d to

the

pen

ding

ref

orm

of

the

EU’s

Rene

wab

le E

nerg

y Di

rect

ive

(RED

), th

e Eu

rope

an

Parli

amen

t vot

ed in

favo

ur o

f a p

ropo

sal t

hat w

ould

free

ze p

rodu

ctio

n of

cro

p-ba

sed

biof

uels

at 2

017

leve

ls, w

hile

cap

ping

thei

r sha

re in

tota

l roa

d/ra

il tra

nspo

rt fu

els

at 7

per

cent

. At t

he s

ame

time,

the

join

t sh

are

of “

adva

nced

” fu

els

(defi

ned

as fu

els

with

a lo

wer

impa

ct o

n la

nd u

se),

was

te-b

ased

bio

fuel

s,

rene

wab

le e

lect

ricity

and

fuel

s of

non

-bio

logi

cal o

rigin

sho

uld

amou

nt to

at l

east

1.5

per

cent

in 2

021,

ris

ing

to 1

0 pe

rcen

t in

203

0. F

urth

erm

ore,

EU

law

mak

ers

prop

osed

to

rem

ove,

by

2021

, pal

m o

il-ba

sed

biod

iese

l fro

m th

e lis

t of b

iofu

els

that

cou

nt to

war

ds th

e bl

oc’s

rene

wab

le fu

el ta

rget

s (w

hile

all

othe

r veg

etab

le o

ils c

ould

be

used

as

feed

stoc

k un

til 2

030)

. Lik

ely

mar

king

the

end

of th

e EU

’s pa

lm-

base

d di

esel

impo

rts, t

he la

tter p

ropo

sal a

ttrac

ted

stro

ng c

ritic

ism

from

pal

m o

il pro

duci

ng c

ount

ries

in

Sout

heas

t Asi

a. A

s fo

r the

blo

c’s

over

all r

enew

able

ene

rgy

targ

ets,

the

Parli

amen

t’s p

ropo

sal e

nvis

ages

th

at, b

y 20

30, a

min

imum

of 3

5 pe

rcen

t of t

otal

ene

rgy

cons

umpt

ion

com

es fr

om re

new

able

sou

rces

, w

hile

the

shar

e of

rene

wab

les

in tr

ansp

ort s

houl

d be

at l

east

12

perc

ent.

Mor

eove

r, en

ergy

effi

cien

cy

wou

ld n

eed

to b

e ra

ised

by

35 p

erce

nt. T

he fi

nal s

hape

of t

he E

U’s

RED

will

only

em

erge

afte

r trip

artit

e ne

gotia

tions

hav

e ta

ken

plac

e be

twee

n th

e Pa

rliam

ent,

the

Com

mis

sion

and

the

Cou

ncil

of M

inis

ters

(s

ee a

lso M

PPU

Dec

.’16,

Jun

e’17

& J

an.’1

8).

66BI

OFU

EL P

OLI

CIE

SEu

rope

an

Uni

onJu

neBi

odie

sel

In m

id-J

une,

the

EU’s

Parli

amen

t, C

ounc

il and

Com

mis

sion

reac

hed

a pr

ovis

iona

l, in

form

al a

gree

men

t re

gard

ing

the

bloc

’s re

new

able

ene

rgy

polic

y af

ter 2

020.

The

pac

kage

, whi

ch is

par

t of a

bro

ader

pol

icy

aim

ed a

t red

ucin

g th

e bl

oc’s

GH

G e

mis

sion

leve

ls c

ompr

ises

: i) b

indi

ng o

vera

ll an

d se

ctor

-spe

cific

ta

rget

s fo

r ren

ewab

le e

nerg

y us

e; ii)

cap

s on

the

amou

nt o

f cro

p-ba

sed

(or ‘

first

gen

erat

ion’

) bio

fuel

s in

tra

nspo

rt at

202

0 le

vels

, with

a m

axim

um o

f 7 p

erce

nt; i

ii) am

bitio

us a

nd b

indi

ng ta

rget

s fo

r ‘ad

vanc

ed’

biof

uels

; iv)

sig

nific

ant,

man

dato

ry p

rese

nce

of w

aste

-bas

ed b

iofu

els,

suc

h as

use

d co

okin

g oi

l and

an

imal

fats

; and

v) a

free

ze o

n th

e us

e of

bio

fuel

s th

at b

ring

abou

t stro

ng in

dire

ct la

nd u

se c

hang

es

(ILU

C) a

t 201

9 le

vels

, with

a m

anda

tory

pha

se-o

ut b

y en

d-20

30. W

ith re

gard

to th

e la

tter p

oint

, the

Eu

rope

an C

omm

issi

on h

as b

een

assi

gned

the

resp

onsi

bilit

y to

dev

elop

– b

y Fe

brua

ry 2

019

– a

prec

ise

met

hodo

logy

to d

efine

the

‘gre

en c

rede

ntia

ls’ o

f ind

ivid

ual b

iofu

els,

so

as to

dis

tingu

ish

high

-ris

k IL

UC

bi

ofue

ls p

rodu

ced

on h

igh

carb

on-s

tock

land

from

oth

ers

prod

uced

with

low

er ri

sk o

f cau

sing

adv

erse

eff

ects

. Whi

le it

rem

ains

to b

e se

en h

ow in

divi

dual

bio

fuel

feed

stoc

k w

ill be

affe

cted

und

er th

e ne

w

clas

sific

atio

n, M

alay

sia

and

Indo

nesi

a st

ated

that

they

wou

ld c

onsi

der r

etal

iato

ry m

easu

res

in c

ase

palm

oil-

base

d fu

el fe

ll un

der t

he ‘h

igh-

ILU

C/lo

w s

usta

inab

ility’

cat

egor

y, ad

ding

that

they

con

side

r th

e EU

’s en

visa

ged

mea

sure

s ar

e di

scrim

inat

ory.

Mea

nwhi

le, t

he tw

o pa

lm o

il pr

oduc

ers

inte

nsifi

ed

thei

r effo

rts to

iden

tify

new

mar

kets

for t

heir

biof

uel e

xpor

ts. F

urth

erm

ore,

repr

esen

tativ

es fr

om th

e EU

bio

fuel

indu

stry

que

stio

ned

the

ratio

nale

for r

estri

ctin

g th

e co

ntrib

utio

n of

thos

e fir

st g

ener

atio

n bi

ofue

ls th

at c

an b

e pr

oduc

ed in

a s

usta

inab

le m

anne

r. Th

e te

xt o

f the

new

EU

dire

ctiv

e st

ill ha

s to

be

form

ally

app

rove

d by

the

Euro

pean

Par

liam

ent a

nd th

e C

ounc

il, fo

llow

ing

whi

ch th

e bl

oc’s

mem

ber

stat

es w

ould

hav

e 18

mon

ths

to tr

ansp

ose

the

dire

ctiv

e in

to n

atio

nal l

aw.

67BI

OFU

EL P

OLI

CIE

SEu

rope

an

Uni

onN

ovem

ber–

Dece

mbe

rBi

ofue

lsTh

e EU

’s C

ounc

il an

d Pa

rliam

ent h

ave

form

ally

app

rove

d ke

y ch

apte

rs o

f the

blo

c’s

bioe

nerg

y po

licy

refo

rm, i

nclu

ding

the

plan

to p

hase

-out

, by

2030

, the

con

sum

ptio

n of

cro

p-ba

sed

biof

uels

that

brin

g ab

out s

trong

indi

rect

land

use

cha

nges

(see

also

MPP

U A

ug.’1

8).

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n*68

BIO

FUEL

PO

LIC

IES

Indi

aJu

neBi

odie

sel

Indi

a’s

rece

ntly

rele

ased

Nat

iona

l Pol

icy

on B

iofu

els

envi

sage

s in

dica

tive

targ

ets

of 2

0 pe

rcen

t gas

olin

e bl

ends

for

eth

anol

and

5 p

erce

nt d

iese

l ble

nds

for

biod

iese

l by

2030

, whi

ch c

ompa

res

to c

urre

nt

pene

tratio

n ra

tes

of a

roun

d 3

perc

ent a

nd le

ss th

an 0

.2 p

erce

nt fo

r eth

anol

and

bio

dies

el re

spec

tivel

y. Ro

ad a

nd r

ail t

rans

port

is e

stim

ated

to a

ccou

nt fo

r ab

out h

alf o

f tot

al b

iodi

esel

con

sum

ptio

n, w

ith

off-ro

ad fa

rm tr

ansp

ort a

nd v

ario

us s

tatio

nary

and

por

tabl

e ap

plic

atio

ns a

ccou

ntin

g fo

r the

rem

aind

er.

Toda

y’s lo

w b

iodi

esel

pen

etra

tion

rate

is a

ttrib

uted

to

mul

tiple

con

stra

ints

, no

tabl

y th

e la

ck o

f a

dedi

cate

d, in

tegr

ated

sup

ply

chai

n, li

mite

d fe

edst

ock

avai

labi

lity,

and

rest

rictio

ns o

n im

ports

. Ind

ia’s

six

biod

iese

l pla

nts

hold

a c

ombi

ned

inst

alle

d ca

paci

ty o

f 574

000

tonn

es p

er y

ear,

whe

reas

act

ual

outp

ut in

201

8 is

est

imat

ed a

t mer

ely

165

000

tonn

es. C

urre

ntly,

the

mai

n fe

edst

ock

used

are

pal

m

stea

rin, U

CO

and

ani

mal

fats

. The

Gov

ernm

ent’s

new

bio

fuel

pol

icy

focu

ses

on fu

els

prod

uced

from

do

mes

tic ra

w m

ater

ials

. In

the

case

of b

iodi

esel

, the

reco

mm

ende

d fe

edst

ock

com

pris

e no

n-ed

ible

oi

lsee

ds, u

sed

cook

ing

oil (

UC

O),

anim

al ta

llow,

aci

d oi

ls a

nd a

lgae

. The

pol

icy

incl

udes

stri

ct ru

les

to p

reve

nt U

CO

fro

m r

e-en

terin

g th

e fo

od c

hain

and

env

isag

es t

he e

stab

lishm

ent

of a

ppro

pria

te

colle

ctio

n m

echa

nism

s to

inc

reas

e th

e su

pply

of

UC

O f

or b

iodi

esel

pro

duct

ion

(see

also

MPP

U

Aug.

’18)

. Mor

eove

r, it

reco

mm

ends

the

use

of w

aste

land

s an

d in

ter-c

ropp

ing

for f

eeds

tock

gen

erat

ion,

w

ith a

focu

s on

non

-edi

ble

oil b

earin

g tre

es a

nd c

rops

as

wel

l as

othe

r bio

mas

s, fo

r whi

ch s

uita

ble

supp

ly c

hain

mec

hani

sms

and

fair

pric

e m

echa

nism

s ar

e to

be

put i

n pl

ace.

With

rega

rd to

non

-edi

ble

oilc

rops

, tria

ls w

ith ja

troph

a cu

rcas

, an

oilp

lant

pro

mot

ed u

nder

Indi

a’s

Nat

iona

l Bio

dies

el M

issi

on,

have

giv

en r

ise

to m

ultip

le q

uest

ions

abo

ut t

he c

rop’

s ag

rono

mic

and

eco

nom

ic v

iabi

lity

(see

also

M

PPU

Jun

e’13

).

69BI

OFU

EL P

OLI

CIE

SIn

dia

July

Biod

iese

l, us

ed

cook

ing

oil

The

Food

Saf

ety

and

Stan

dard

s Au

thor

ity o

f Ind

ia (F

SSAI

) ini

tiate

d di

scus

sion

s w

ith In

dia’

s Bi

odie

sel

Asso

ciat

ion

on s

ettin

g up

a s

yste

m f

or t

he c

olle

ctio

n of

use

d co

ckin

g oi

l and

its

conv

ersi

on in

to

biod

iese

l, lo

cal m

edia

repo

rted.

Priv

ate

sour

ces

estim

ated

that

, out

of 2

3 m

illion

tonn

es o

f coo

king

co

nsum

ed a

nnua

lly in

the

coun

try, u

p to

3 m

illion

cou

ld b

e re

cove

red

and

used

as

biod

iese

l fee

dsto

ck.

70BI

OFU

EL P

OLI

CIE

SIn

done

sia

Febr

uary

Biod

iese

lTo

dat

e, g

over

nmen

t sub

sidi

es fo

r man

dato

ry sa

les o

f bio

dies

el (i.

e. d

iese

l ble

nds c

onta

inin

g 20

per

cent

of

pal

m o

il-ba

sed

biod

iese

l) ha

ve o

nly

been

mad

e av

aila

ble

to th

e en

ergy

sec

tor a

nd fo

r tra

nspo

rt fu

els

sold

to th

e pu

blic

thro

ugh

stat

e-ow

ned

com

pany

Per

tam

ina,

als

o kn

own

as P

ublic

Ser

vice

Obl

igat

ion

(PSO

) sal

es. A

ccor

ding

to

loca

l med

ia r

epor

ts, t

he G

over

nmen

t is

now

con

side

ring

to e

xpan

d th

e sc

ope

of it

s bi

odie

sel s

ubsi

dies

to th

e co

untry

’s m

inin

g in

dust

ry a

nd to

the

non-

PSO

sec

tor,

i.e. f

uels

so

ld t

hrou

gh p

rivat

e se

ctor

out

lets

. The

mov

e w

ould

be

part

of a

mbi

tious

pla

ns t

o fu

rther

exp

and

dom

estic

con

sum

ptio

n of

pal

m-b

iodi

esel

. Whi

le, f

or P

SO sa

les,

the

Gov

ernm

ent w

ould

con

tinue

to fu

lly

cove

r the

pric

e ga

p be

twee

n co

nven

tiona

l die

sel a

nd b

iodi

esel

, the

sub

sidy

for n

on-P

SO d

istri

buto

rs

coul

d be

cap

ped

at ID

R 4

000

per l

iter (

USD

0.2

9). R

epor

tedl

y, th

e G

over

nmen

t is

also

con

side

ring

to re

inst

ate

biod

iese

l ble

nds

in th

e co

untry

’s lo

com

otiv

e se

ctor

, whe

re m

anda

tory

ble

ndin

g ha

d be

en

susp

ende

d la

st y

ear f

ollo

win

g ca

ses

of e

ngin

e fa

ilure

. Bas

ed o

n re

cent

pos

itive

per

form

ance

test

s,

low

-con

cent

ratio

n bl

ends

(con

tain

ing

up to

5 p

erce

nt o

f bio

dies

el) m

ay b

e in

trodu

ced

in m

id-2

018.

16 Oilcrops complex: Policy changes and industry measures - Annual compendium 2018

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n*71

BIO

FUEL

PO

LIC

IES

Indo

nesi

aM

arch

Biod

iese

lBi

odie

sel p

rodu

ctio

n w

ill co

ntin

ue to

enj

oy g

over

nmen

t sup

port

in In

done

sia.

In 2

018,

pro

duce

rs o

f pa

lm o

il-ba

sed

dies

el a

re s

et to

con

tinue

rece

ivin

g su

bsid

ies,

tied

to g

over

nmen

t effo

rts to

stim

ulat

e do

mes

tic d

eman

d fo

r pal

m o

il so

as

to p

reve

nt o

vers

uppl

y of

the

com

mod

ity a

nd s

tabi

lize

its p

rice

on

the

glob

al m

arke

t. Ac

cord

ing

to m

edia

repo

rts, o

ffici

al e

stim

ates

pla

ce d

omes

tic b

iodi

esel

con

sum

ptio

n at

3.0

6 m

illion

ton

nes

in 2

018,

com

pare

d to

2.2

4 m

illion

ton

nes

last

yea

r. Fu

rther

mor

e, n

ext

July,

m

anda

tory

bio

dies

el u

se is

set

to b

e ex

pand

ed to

incl

ude

the

min

ing

sect

or a

nd a

sta

te-o

wne

d ra

ilway

op

erat

or. A

nnua

l upt

ake

by th

e m

inin

g an

d lo

com

otiv

e se

ctor

wou

ld a

mou

nt to

abo

ut 5

00 0

00 to

nnes

, w

hile

roa

d tra

nspo

rtatio

n an

d po

wer

pla

nts

wou

ld a

bsor

b 2.

55 m

illion

ton

nes.

Ble

ndin

g ra

tes

will

rang

e be

twee

n 5

perc

ent

(loco

mot

ive)

, 10

per

cent

(min

ing)

and

20

perc

ent

(tran

spor

t an

d en

ergy

se

ctor

s). L

ong-

term

pla

ns to

rais

e do

mes

tic a

dmix

ture

leve

ls in

the

trans

porta

tion

and

ener

gy s

ecto

rs

to 3

0 pe

rcen

t are

uph

eld.

In th

e m

eant

ime,

als

o ex

ports

of b

iodi

esel

may

rise

, fol

low

ing

the

rece

nt

elim

inat

ion

of th

e EU

’s an

ti-du

mpi

ng d

utie

s on

Indo

nesi

an b

iodi

esel

.

72BI

OFU

EL P

OLI

CIE

SIn

done

sia

May

Biod

iese

lFu

rther

to it

s re

cent

dec

isio

n to

ext

end

man

dato

ry b

iodi

esel

use

to th

e co

untry

’s m

inin

g an

d ra

ilway

se

ctor

, the

Indo

nesi

an G

over

nmen

t pla

ns to

requ

ire al

l die

sel fu

el so

ld in

the c

ount

ry to

cont

ain

biod

iese

l, st

artin

g 1

Sept

embe

r 201

8 (s

ee a

lso M

PPU

Mar

. & A

pr.’1

8). W

hile

, cur

rent

ly, b

lend

ing

oblig

atio

ns o

nly

appl

y to

sub

sidi

zed

dies

el o

utle

ts, u

nder

the

new

rule

, fue

l pum

ps c

ount

ryw

ide

wou

ld o

nly

be a

llow

ed

to s

ell d

iese

l ble

nds

cont

aini

ng b

iodi

esel

. Bes

ides

allo

win

g In

done

sia

to lo

wer

its

min

eral

fuel

impo

rts

(and

thus

redu

ce th

e na

tion’

s cu

rrent

acc

ount

defi

cit),

the

envi

sage

d m

easu

re is

aim

ed a

t boo

stin

g do

mes

tic p

alm

oil

cons

umpt

ion,

the

reby

hel

ping

sta

biliz

e pa

lm o

il pr

ices

and

low

er t

he o

il pa

lm

indu

stry

’s de

pend

ence

on

the

expo

rt m

arke

t. M

oreo

ver,

the

biod

iese

l ind

ustry

’s ca

paci

ty u

tiliza

tion

rate

, whi

ch c

urre

ntly

is lin

gerin

g ar

ound

25

perc

ent,

wou

ld im

prov

e. R

epor

tedl

y, en

cour

aged

by

a m

ore

favo

urab

le m

iner

al o

il-to

-pal

m o

il pr

ice

ratio

, the

Gov

ernm

ent i

s al

so c

onsi

derin

g to

brin

g fo

rwar

d th

e pl

anne

d sh

ift in

the

coun

try’s

man

dato

ry b

lend

ing

rate

, fro

m 2

0 pe

rcen

t to

30 p

erce

nt, t

o 20

19 (i

.e.

one

year

ear

lier t

han

antic

ipat

ed) –

des

pite

resi

stan

ce fr

om b

oth

regu

lato

rs a

nd th

e au

tom

otiv

e an

d oi

l ind

ustri

es. F

urth

erm

ore,

the

Gov

ernm

ent s

tarte

d off

erin

g in

cent

ives

for t

he d

evel

opm

ent o

f a n

ew

100%

pal

m o

il-ba

sed

fuel

cal

led

“gre

en d

iese

l”. P

rodu

ced

usin

g hy

dro-

treat

ed v

eget

able

oils

, the

fu

el is

sai

d to

be

free

from

the

adve

rse

effec

ts fo

und

in e

ster

ifica

tion-

base

d bi

odie

sel (

see

also

MPP

U

Nov

.’15)

. With

rega

rd to

tota

l dom

estic

con

sum

ptio

n, th

e la

test

offi

cial

est

imat

es p

roje

ct n

ext y

ear’s

bi

odie

sel u

se a

t 5.3

–5.4

milli

on to

nnes

, com

pare

d to

est

imat

es fo

r 201

8 ra

ngin

g be

twee

n 2.

9 an

d 3.

5 m

illion

tonn

es. A

ctua

lly, a

ccor

ding

to o

bser

vers

, the

exi

stin

g B2

0 ta

rget

has

yet

to b

e m

et fu

lly. T

he

dela

y is

attr

ibut

ed to

logi

stic

al b

ottle

neck

s an

d to

pas

t gap

s be

twee

n m

iner

al o

il an

d pa

lm o

il pr

ices

, w

hich

redu

ced

the

effec

tiven

ess

of th

e fin

anci

al s

uppo

rt pr

ovid

ed to

the

indu

stry

.

Oilcrops complex: Policy changes and industry measures - Annual compendium 2018 17

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n*73

BIO

FUEL

PO

LIC

IES

Indo

nesi

aSe

ptem

ber

Biod

iese

lIn

sup

port

of r

ecen

t m

easu

res

to f

oste

r do

mes

tic p

rodu

ctio

n an

d co

nsum

ptio

n of

pal

m o

il-ba

sed

biod

iese

l (se

e M

PPU

Aug

.’18)

, the

Gov

ernm

ent d

ecid

ed to

wid

en th

e ab

ility

of th

e co

untry

’s O

il Pa

lm

Esta

te F

und

to s

ubsi

dize

the

pric

e ga

p be

twee

n co

nven

tiona

l die

sel a

nd b

iodi

esel

(NB:

the

fund

was

se

t up

in 2

015

to c

olle

ct a

levy

on

each

ton

ne o

f cr

ude

palm

oil

expo

rted)

. Whi

le p

revi

ousl

y on

ly

sale

s in

volv

ing

stat

e-ow

ned

com

pani

es (s

o-ca

lled

PSO

sal

es –

see

MPP

U M

ar.’1

8) c

ould

ben

efit f

rom

su

bsid

ies,

now

ince

ntiv

es w

ill re

ach

all b

iodi

esel

man

ufac

ture

rs, t

here

by e

nsur

ing

unifo

rm p

ricin

g in

the

PSO

and

non

-PSO

sec

tor.

In th

e m

eant

ime,

offi

cial

sou

rces

repo

rted

that

, as

of m

id-S

epte

mbe

r, th

e im

plem

enta

tion

of th

e na

tion-

wid

e B2

0 m

anda

te (i

.e. s

ales

of d

iese

l inc

ludi

ng 2

0 pe

rcen

t of b

iodi

esel

) ha

d re

ache

d 80

per

cent

of t

he G

over

nmen

t’s ta

rget

. Rep

orte

dly,

Perta

min

a –

the

coun

try’s

dom

inan

t, st

ate-

owne

d di

esel

dis

tribu

tor

– m

anag

ed t

o di

strib

ute

B20

biod

iese

l to

95

perc

ent

of i

ts p

etro

l st

atio

ns. R

each

ing

the

targ

et fu

lly w

ould

requ

ire o

verc

omin

g a

num

ber o

f out

stan

ding

logi

stic

al is

sues

, es

peci

ally

in t

he e

aste

rn p

art

of t

he c

ount

ry, m

arke

t ex

perts

sai

d. A

ccor

ding

to

offici

al e

stim

ates

, bi

odie

sel p

rodu

ctio

n co

uld

clim

b to

7 m

illion

met

ric to

nnes

nex

t yea

r – 4

0 pe

rcen

t hig

her t

han

the

5 m

illion

tonn

es e

stim

ate

prov

ided

for t

he c

urre

nt y

ear.

74BI

OFU

EL P

OLI

CIE

SIn

done

sia

Dece

mbe

rBi

odie

sel

Acco

rdin

g to

med

ia re

ports

, afte

r las

t yea

r’s sh

ift to

20

perc

ent b

iodi

esel

ble

nds i

n th

e cou

ntry

’s tra

nspo

rt se

ctor

(see

MPP

U A

ug.’1

8), t

he G

over

nmen

t pla

ns to

furth

er b

oost

dom

estic

bio

dies

el c

onsu

mpt

ion,

w

ith th

e ai

m to

enh

ance

the

upta

ke o

f cru

de p

alm

oil a

mid

fluct

uatio

ns in

the

com

mod

ity’s

glob

al m

arke

t pr

ice.

In p

artic

ular

, the

via

bilit

y of

rais

ing

the

cont

ent o

f bio

dies

el in

fuel

s to

30

and

even

100

per

cent

is

bei

ng a

naly

sed.

In th

e m

eant

ime,

sta

te-o

wne

d oi

l com

pany

Per

tam

ina

is s

aid

to c

onsi

der s

ettin

g up

th

ree

new

bio

dies

el re

finer

ies.

75BI

OFU

EL P

OLI

CIE

SRe

publ

ic o

f Ko

rea

Janu

ary

Biod

iese

lEff

ectiv

e Ja

nuar

y 20

18, t

he R

epub

lic o

f Kor

ea r

aise

d th

e m

anda

tory

incl

usio

n ra

te fo

r bi

odie

sel i

n tra

nspo

rtatio

n di

esel

from

2.5

per

cent

to 3

per

cent

. The

new

rate

is s

et to

rem

ain

in p

lace

unt

il en

d 20

20. D

omes

tic b

iodi

esel

out

put i

s ex

pect

ed to

incr

ease

acc

ordi

ngly

and

, with

it, t

he c

ount

ry’s

impo

rts

of p

alm

oil,

the

prim

ary

feed

stoc

k fo

r dom

estic

bio

dies

el p

rodu

ctio

n.

76BI

OFU

EL P

OLI

CIE

SM

alay

sia

July

Biod

iese

lM

alay

sia’

s lo

ng-s

tand

ing

plan

to ra

ise

the

coun

try’s

man

dato

ry b

lend

ing

rate

for b

iodi

esel

is b

ack

on

the

agen

da. T

he p

lann

ed m

ove

from

B7

to B

10 (w

hich

wou

ld re

quire

tran

spor

t die

sel t

o be

mix

ed w

ith

10 ra

ther

than

7 p

erce

nt o

f pal

m o

il-ba

sed

biod

iese

l) ha

s be

en p

ostp

oned

sev

eral

tim

es, a

s la

rge

pric

e di

scou

nts

of m

iner

al o

il ov

er p

alm

oil

mad

e im

plem

enta

tion

of h

ighe

r m

anda

tes

cost

ly (s

ee M

PPU

De

c.’1

6). R

ecen

tly, h

owev

er, t

he p

rice

gap

betw

een

min

eral

oil

and

palm

oil

has

narro

wed

, mak

ing

high

er b

lend

ing

rate

s m

ore

viab

le. A

ccor

ding

to

offici

al s

ourc

es, t

he G

over

nmen

t co

uld

outli

ne it

s pl

ans

on h

ow to

impl

emen

t new

man

date

s by

the

end

of th

is y

ear.

Hig

her b

lend

ing

rate

s w

ould

allo

w

to re

duce

dom

estic

pal

m o

il su

pplie

s, h

ence

low

erin

g st

ocks

and

sup

porti

ng p

rices

. The

cou

ntry

’s bi

odie

sel i

ndus

try c

onfir

med

that

it c

ould

rais

e ou

tput

any

time,

as

prod

ucer

s ar

e cu

rrent

ly o

pera

ting

wel

l bel

ow in

stal

led

capa

city

.

77BI

OFU

EL P

OLI

CIE

SM

alay

sia

Nov

embe

rBi

odie

sel

Ackn

owle

dgin

g th

e re

cent

nar

row

ing

in th

e ga

p be

twee

n pa

lm o

il and

min

eral

oil p

rices

, the

Mal

aysi

an

Gov

ernm

ent d

ecid

ed to

impl

emen

t its

long

-sta

ndin

g pl

an to

rais

e th

e co

untry

’s m

anda

tory

ble

ndin

g ra

te fo

r bio

dies

el (s

ee a

lso M

PPU

Aug

.’18)

. Rep

orte

dly,

the

new

pol

icy

– w

hich

wou

ld re

quire

tran

spor

t di

esel

to

be m

ixed

with

10

rath

er t

han

7 pe

rcen

t of

pal

m o

il-ba

sed

biod

iese

l – w

ill be

pha

sed

in

from

1 D

ecem

ber 2

018,

with

man

dato

ry b

lend

ing

taki

ng e

ffect

on

1 Fe

brua

ry 2

019.

In a

dditi

on to

the

com

puls

ory

10 p

erce

nt-b

lend

s in

the

tra

nspo

rt se

ctor

, a 7

per

cent

ble

ndin

g ra

te is

set

to

beco

me

man

dato

ry f

or t

he in

dust

rial s

ecto

r fro

m J

uly

of n

ext

year

. Th

e m

easu

res

are

expe

cted

to

boos

t do

mes

tic d

eman

d fo

r pal

m o

il an

d su

ppor

t the

oil’s

pric

e, w

hich

, due

to la

rge

dom

estic

inve

ntor

ies,

ha

s dr

oppe

d to

mul

ti-ye

ar lo

ws.

18 Oilcrops complex: Policy changes and industry measures - Annual compendium 2018

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n*78

BIO

FUEL

PO

LIC

IES

Thai

land

Mar

chBi

odie

sel

With

a v

iew

to s

uppo

rt oi

l pal

m g

row

ers

affec

ted

by d

epre

ssed

pric

es (s

tem

min

g fro

m b

urde

nsom

e do

mes

tic s

uppl

ies)

, the

Gov

ernm

ent o

f Tha

iland

is p

lann

ing

to ra

ise

man

dato

ry b

lend

ing

of p

alm

oil-

base

d bi

odie

sel in

the

auto

mot

ive

and

railw

ay s

ecto

rs fr

om 7

per

cent

to 1

0 pe

rcen

t. Pe

rform

ance

test

s of

the

high

er b

lend

s ar

e cu

rrent

ly b

eing

con

duct

ed w

ith s

uppo

rt fro

m th

e in

dust

ry. A

ccor

ding

to th

e pr

ess,

the

shift

to th

e hi

gher

ble

ndin

g ra

te is

env

isag

ed fo

r ear

ly n

ext y

ear.

In re

cent

yea

rs, t

he c

ount

ry

has

seen

repe

ated

adj

ustm

ents

in m

anda

ted

rate

s –

both

upw

ard

and

dow

nwar

d –

as th

e G

over

nmen

t st

rived

to s

tabi

lize

dom

estic

pal

m o

il pr

ices

(see

MPP

U S

ep.’1

6, A

ug.’1

7 &

Jan.

’18)

.

79BI

OFU

EL P

OLI

CIE

STu

rkey

Janu

ary

Biod

iese

lO

n 1

Janu

ary

2018

, man

dato

ry b

lend

ing

of tr

ansp

ort d

iese

l with

0.5

per

cent

bio

dies

el h

as b

ecom

e eff

ectiv

e na

tion-

wid

e. B

ased

on

dom

estic

die

sel c

onsu

mpt

ion

of a

bout

22.

3 m

illion

tonn

es, b

iodi

esel

up

take

wou

ld a

mou

nt t

o ap

prox

imat

ely

115

000

tonn

es p

er y

ear.

Repo

rtedl

y, re

finer

s ac

quiri

ng

biod

iese

l wou

ld b

e en

title

d to

exc

ise

duty

exe

mpt

ions

. The

cou

ntry

’s in

stal

led

biod

iese

l pro

duct

ion

capa

city

is re

porte

d at

235

000

tonn

es.

80BI

OFU

EL P

OLI

CIE

Sth

e U

nite

d Ki

ngdo

m o

f G

reat

Brit

ain

and

Nor

ther

n Ire

land

April

Biod

iese

lO

n 15

Apr

il, a

num

ber o

f cha

nges

in th

e U

K’s

Rene

wab

le T

rans

port

Fuel

Obl

igat

ion

(RTF

O) h

ave

com

e in

to e

ffect

. Tra

nspo

rt fu

el m

anuf

actu

rers

will

be re

quire

d to

gua

rant

ee b

iofu

el b

lend

ing

rate

s of

at l

east

9.

75 p

erce

nt a

nd 1

2.4

perc

ent i

n, re

spec

tivel

y, 20

20 a

nd 2

032

– co

mpa

red

to th

e pr

esen

t tar

get o

f 4.

75 p

erce

nt. A

t the

sam

e tim

e, th

e ne

w le

gisl

atio

n es

tabl

ishe

s a

4 pe

rcen

t cap

on

the

cont

ribut

ion

of

crop

-bas

ed (o

r ‘fir

st g

ener

atio

n’) b

iofu

els

until

202

1, a

fter w

hich

thre

shol

ds o

f 3 p

erce

nt a

nd 2

per

cent

w

ill ap

ply

in, r

espe

ctiv

ely,

2026

and

203

2. R

FTO

will

also

, for

the

first

tim

e, s

uppo

rt an

d re

war

d th

e pr

oduc

tion

of s

usta

inab

le re

new

able

avi

atio

n fu

el.

81BI

OFU

EL P

OLI

CIE

SU

nite

d St

ates

Febr

uary

Biod

iese

lTh

e U

.S. C

ongr

ess

pass

ed a

one

-yea

r ext

ensi

on o

f the

USD

1 p

er g

allo

n ta

x cr

edit

gran

ted

to b

iodi

esel

bl

ende

rs, w

hich

had

exp

ired

on 3

1 De

cem

ber 2

016.

The

retro

activ

e ex

tens

ion

to 2

017

will

trigg

er a

ca

sh tr

ansf

er o

f app

roxi

mat

ely

USD

2.6

milli

on to

the

US

biod

iese

l sup

ply

chai

n, m

atch

ing

last

yea

rs’

biod

iese

l mar

ket o

f 2.6

milli

on g

allo

ns. T

he U

.S. b

iodi

esel

indu

stry

had

sou

ght a

n ex

tens

ion

of th

e 12

-ye

ar o

ld s

ubsi

dy th

roug

h th

e cu

rrent

yea

r (20

18) a

nd p

ossi

bly

beyo

nd. T

he in

dust

ry h

ad a

lso

urge

d la

wm

aker

s to

con

vert

the

blen

ders

cre

dit i

nto

a do

mes

tic p

rodu

cers

cre

dit,

in a

bid

to p

reve

nt fo

reig

n bi

odie

sel f

rom

qua

lifyi

ng fo

r the

sub

sidy

(see

MPP

U J

une’

17).

82BI

OFU

EL P

OLI

CIE

SU

nite

d St

ates

Febr

uary

Biod

iese

lTh

e U

.S.

Depa

rtmen

t of

Ene

rgy

deci

ded

to s

uppo

rt re

sear

ch o

n th

e de

velo

pmen

t of

enh

ance

d su

garc

ane

and

elep

hant

gra

ss (

misc

anth

us f

uscu

s),

in a

bid

to

cont

ribut

e to

effo

rts t

o id

entif

y al

tern

ativ

e fe

edst

ock

for t

he p

rodu

ctio

n of

tran

spor

t bio

dies

el a

nd a

viat

ion

fuel

. Rep

orte

dly,

a te

am

of re

sear

cher

s is

wor

king

on

rais

ing

the

oil c

onte

nt in

the

stem

of t

he tw

o cr

ops

to 2

0 pe

rcen

t, us

ing

gene

tic e

ngin

eerin

g te

chni

ques

. Alle

gedl

y, if

fully

suc

cess

ful,

the

targ

eted

cro

ps w

ould

pro

duce

up

to

15 ti

mes

mor

e bi

odie

sel p

er u

nit o

f lan

d co

mpa

red

to s

oybe

ans.

83BI

OFU

EL P

OLI

CIE

SU

nite

d St

ates

May

Biod

iese

lFr

om 1

May

, the

sta

te o

f Min

neso

ta re

quire

s pe

trole

um d

iese

l to

be b

lend

ed w

ith 2

0 pe

rcen

t bio

dies

el

durin

g th

e Ap

ril–S

epte

mbe

r per

iod

– ex

actly

dou

ble

the

prev

ious

ble

ndin

g re

quire

men

t of 1

0 pe

rcen

t. Du

ring

the

win

ter m

onth

s, th

e m

anda

te is

set

to re

vert

back

to 5

per

cent

. To

impl

emen

t the

hig

her

requ

irem

ents

, sta

te o

ffici

als

mus

t ens

ure

that

the

follo

win

g co

nditi

ons

are

met

: suffi

cien

t fee

dsto

ck

supp

ly; a

dequ

ate

blen

ding

infra

stru

ctur

e; a

nd th

e ex

iste

nce

of ta

ilore

d fu

el s

tand

ards

.

Oilcrops complex: Policy changes and industry measures - Annual compendium 2018 19

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n*84

BIO

FUEL

PO

LIC

IES

Uni

ted

Stat

esJu

neBi

odie

sel

The

Envi

ronm

enta

l Pro

tect

ion

Agen

cy (E

PA) p

ropo

sed

its ta

rget

for

‘bio

mas

s-ba

sed

dies

el’ i

n 20

20

(see

also

MPP

U D

ec.’1

7). T

he p

ropo

sed

2.43

billi

on g

allo

ns b

lend

ing

man

date

com

pare

s to

a v

olum

e of

2.1

billi

on g

allo

ns a

pplie

d in

bot

h 20

18 a

nd 2

019.

Fur

ther

mor

e, E

PA p

ropo

sed

a 20

19 ta

rget

for t

he

‘adv

ance

d bi

ofue

l’ cat

egor

y – fo

r whi

ch b

iodi

esel

als

o qu

alifi

es –

of 4

.88

billio

n ga

llons

, whi

ch c

ompa

res

to a

201

8 m

anda

te o

f 4.2

9 bi

llion

gallo

ns. T

he p

ropo

sed

incr

ease

s w

ould

lead

to ri

sing

dem

and

for

soyb

ean

oil a

nd o

ther

bio

dies

el fe

edst

ock.

As

for t

he o

ther

bio

fuel

cat

egor

ies,

EPA

pro

pose

d to

kee

p th

e 20

19 ta

rget

for ‘

conv

entio

nal b

iofu

el’ (

mos

tly e

than

ol d

eriv

ed fr

om m

aize

sta

rch)

froz

en a

t 201

5 le

vels

, whi

le s

igni

fican

tly ra

isin

g m

anda

tory

ble

ndin

g of

‘cel

lulo

sic

biof

uel’.

EPA

’s de

adlin

e fo

r iss

uing

th

e fin

al v

olum

es is

30

Nov

embe

r. Re

gard

ing

the

prop

osal

for

biom

ass-

base

d di

esel

, the

cou

ntry

’s bi

odie

sel p

rodu

cers

had

cal

led

for a

202

0 vo

lum

e of

at l

east

2.8

billi

on g

allo

ns. T

he in

dust

ry a

lso

urge

d EP

A to

redu

ce th

e un

certa

inty

it c

ause

d by

issu

ing

retro

activ

e sm

all-r

efine

r har

dshi

p ex

empt

ions

. In

this

re

gard

, the

Nat

iona

l Bio

dies

el B

oard

est

imat

ed th

at th

e ex

empt

ions

gra

nted

in 2

016

and

2017

redu

ced

actu

al d

eman

d fo

r bio

dies

el b

y 37

5 m

illion

gal

lons

. How

ever

, EPA

has

dec

ided

aga

inst

real

loca

ting

exem

pt v

olum

es.

85BI

OFU

EL P

OLI

CIE

SU

nite

d St

ates

Nov

embe

rBi

odie

sel

The

U.S

. En

viro

nmen

tal

Prot

ectio

n Ag

ency

(EP

A) fi

naliz

ed t

he b

iofu

el b

lend

ing

oblig

atio

ns f

or

2019

. C

ompa

red

to t

he p

revi

ousl

y pr

opos

ed t

arge

ts (

see

MPP

U D

ec.’1

7 &

Aug.

’18)

, th

e vo

lum

e fo

r th

e ‘a

dvan

ced

biof

uel’

cate

gory

– u

nder

whi

ch b

iodi

esel

qua

lifies

– h

as b

een

rais

ed s

light

ly

(from

4.8

8 b

illion

gal

lons

to 4

.92

billio

n ga

llons

), w

hile

the

requ

irem

ents

for ‘

conv

entio

nal b

iofu

el’ a

nd

‘bio

mas

s-ba

sed

biod

iese

l’ ha

ve b

een

left

unch

ange

d. B

iodi

esel

indu

stry

repr

esen

tativ

es m

aint

aine

d th

at t

he n

ew s

tand

ards

fal

l sho

rt of

the

atta

inab

le p

rodu

ctio

n le

vels

. Fu

rther

mor

e, E

PA o

pted

not

to

rea

lloca

te b

lend

ing

oblig

atio

ns p

revi

ousl

y w

aive

d un

der

the

agen

cy’s

smal

l refi

nery

exe

mpt

ion

prog

ram

me,

thus

not

sat

isfy

ing

calls

mad

e by

bot

h bi

ofue

l pro

duce

rs a

nd fa

rmer

s gr

oups

.

86BI

OFU

EL P

OLI

CIE

SU

nite

d St

ates

Nov

embe

rBi

odie

sel

The

USD

1 p

er g

allo

n ta

x cr

edit

tradi

tiona

lly a

ccor

ded

to b

iodi

esel

ble

nder

s ex

pire

d ba

ck in

Dec

embe

r 20

17 (s

ee M

PPU

Mar

.’18)

. In

this

reg

ard,

the

Low

er H

ouse

is c

urre

ntly

rev

iew

ing

a pr

opos

al f

or a

lo

ng-te

rm e

xten

sion

of t

he in

cent

ive.

Ove

r the

pas

t five

yea

rs, C

ongr

ess

allo

wed

the

tax

ince

ntiv

e to

ex

pire

, eve

ntua

lly g

rant

ing

retro

activ

e on

e-ye

ar e

xten

sion

s. In

dust

ry re

pres

enta

tives

long

adv

ocat

ed

for a

mul

ti-ye

ar re

new

al to

pro

vide

cer

tain

ty a

nd p

redi

ctab

ility

for p

rodu

cers

and

feed

stoc

k su

pplie

rs.

87TR

ADE

POLI

CIE

S –

Im

port

mea

sure

s -

non-

tariff

Chi

naJa

nuar

y–Fe

brua

rySo

ybea

nsO

n 1

Janu

ary

2018

, stri

cter

sta

ndar

ds f

or im

ports

of

raw,

unp

roce

ssed

soy

bean

s fro

m t

he U

nite

d St

ates

hav

e ta

ken

effec

t (se

e M

PPU

Jan

.’18)

. Und

er th

e ne

w p

roce

dure

, USD

A’s

Anim

al a

nd P

lant

H

ealth

Insp

ectio

n se

rvic

e is

exp

ecte

d to

not

ify C

hina

whe

n a

ship

men

t exc

eeds

1%

of f

orei

gn m

ater

ial.

All U

S so

y co

nsig

nmen

ts, i

nclu

ding

thos

e ex

ceed

ing

the

thre

shol

d, w

ill be

allo

wed

to e

nter

the

coun

try

whi

le th

e U

.S. s

ets

up p

roce

dure

s to

mee

t the

new

requ

irem

ent.

How

ever

, the

new

rule

s co

uld

enta

il ad

ditio

nal p

roce

ssin

g at

Chi

nese

por

ts to

rem

ove

impu

ritie

s, h

ence

rais

ing

tota

l shi

pmen

t cos

ts. I

n Fe

brua

ry, U

SDA

issu

ed g

uide

lines

for U

S gr

ower

s an

d ex

porte

rs o

n ho

w to

redu

ce w

eed

pres

ence

in

soyb

ean

cons

ignm

ents

by

adop

ting

a se

t of s

trict

pro

duct

ion

and

hand

ling

prac

tices

.

20 Oilcrops complex: Policy changes and industry measures - Annual compendium 2018

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n*88

TRAD

E PO

LIC

IES

–

Impo

rt m

easu

res

- no

n-ta

riff

Chi

naAu

gust

–N

ovem

ber

Soyb

ean,

so

ymea

l, so

yoil,

ra

pese

ed m

eal,

fishm

eal,

fisho

il

Trad

e m

itiga

tion:

C

hina

’s st

ate-

owne

d gr

ain

corp

orat

ion

Sino

grai

n an

d go

vern

men

t offi

cial

s fro

m

Arge

ntin

a ag

reed

to in

crea

se C

hina

’s im

ports

of A

rgen

tine

soym

eal a

nd s

oyoi

l, pe

ndin

g in

spec

tions

of

Arge

ntin

e cr

ushi

ng fa

cilit

ies

by C

hine

se o

ffici

als.

With

a v

iew

to d

iver

sify

sou

rces

of p

rote

in fo

r use

in

anim

al fe

ed, t

he C

hine

se G

over

nmen

t als

o ap

prov

ed th

e re

sum

ptio

n of

rape

seed

mea

l im

ports

from

In

dia

(whi

ch h

ad b

een

bann

ed in

201

1 ov

er q

ualit

y co

ncer

ns),

subj

ect t

o in

spec

tion

and

quar

antin

e re

quire

men

ts.

Chi

na a

nd I

ndia

als

o si

gned

an

agre

emen

t al

low

ing

Chi

nese

offi

cial

s to

ins

pect

im

ports

of I

ndia

n fis

hmea

l and

fish

oil.

Furth

erm

ore,

Chi

nese

cus

tom

s au

thor

ities

app

rove

d im

ports

of

rap

esee

dmea

l fro

m K

azak

hsta

n. M

oreo

ver,

Chi

nese

gov

ernm

ent

offici

als

cond

ucte

d ta

lks

with

Br

azilia

n so

y pr

oces

sors

with

rega

rd to

pos

sibl

e im

ports

of B

razil

ian

soym

eal a

t pre

fere

ntia

l con

ditio

ns.

On

the

sam

e su

bjec

t, ea

rlier

this

yea

r, C

hina

i) s

tarte

d al

low

ing

soym

eal i

mpo

rts fr

om E

thio

pia,

and

ii)

agre

ed to

impo

rt sh

elle

d su

nflow

erse

ed fr

om B

ulga

ria. A

ll of

the

abov

e m

easu

res

have

bee

n lin

ked

to C

hine

se e

fforts

to

miti

gate

the

impa

ct o

f C

hina

’s re

talia

tory

tax

on

U.S

. soy

bean

s on

dom

estic

m

arke

ts, w

hile

redu

cing

the

coun

try’s

relia

nce

on im

porte

d so

ybea

ns fo

r fee

d.

89TR

ADE

POLI

CIE

S –

Im

port

mea

sure

s -

non-

tariff

Chi

naDe

cem

ber

Soyb

eans

, se

lect

ed p

rote

in

mea

l

Trad

e m

itiga

tion:

The

Chi

nese

Gov

ernm

ent i

ntro

duce

d ad

ditio

nal m

easu

res

to m

itiga

te th

e im

pact

of

its re

talia

tory

impo

rt ta

riff o

n U

.S. s

oybe

ans

on th

e do

mes

tic m

arke

t (se

e al

so M

PPU

Dec

.’18)

. The

G

over

nmen

t ann

ounc

ed p

lans

to re

mov

e, fr

om 1

Jan

uary

201

9, im

port

tariff

s on

mea

ls th

at c

an re

plac

e so

ybea

n m

eal i

n an

imal

feed

, not

ably

mea

l obt

aine

d fro

m ra

pese

ed, c

otto

nsee

d, s

unflo

wer

seed

and

pa

lm k

erne

l. Fu

rther

mor

e, to

incr

ease

the

dive

rsity

of i

ts s

oybe

an s

uppl

y or

igin

s, im

ports

of s

oybe

ans

from

Bol

ivia

hav

e be

en a

llow

ed. M

oreo

ver,

follo

win

g th

e st

art o

f a n

ew ro

und

of tr

ade

talk

s w

ith th

e U

nite

d St

ates

(aim

ed a

t res

olvi

ng th

e tw

o co

untri

es’ c

ontro

vers

ies

by 1

Mar

ch 2

019)

, Chi

na’s

stat

e-ow

ned

ente

rpris

es h

ave

been

dire

cted

to re

sum

e pu

rcha

ses

of U

.S. s

oybe

ans.

To d

ate,

acq

uisi

tions

of

arou

nd 2

.3 m

illion

tonn

es h

ave

been

con

firm

ed. C

omm

erci

al U

.S. s

oybe

an im

ports

, how

ever

, rem

aine

d ni

l, gi

ven

that

Chi

na’s

25 p

erce

nt re

talia

tory

impo

rt ta

riff re

mai

ned

in p

lace

.

90TR

ADE

POLI

CIE

S –

Im

port

mea

sure

s -

non-

tariff

Russ

ian

Fede

ratio

nDe

cem

ber

Sunfl

ower

oil

The

Gov

ernm

ent o

f the

Rus

sian

Fed

erat

ion

expa

nded

an

exis

ting

ban

on g

oods

impo

rted

from

Ukr

aine

. Re

porte

dly,

the

mov

e ha

s co

me

in re

spon

se to

a re

cent

ly p

rolo

nged

Ukr

aini

an e

mba

rgo

on R

ussi

an

prod

ucts

. The

goo

ds ta

rget

ed u

nder

the

Russ

ian

Fede

ratio

n’s

ban

incl

ude

sunfl

ower

oil.

91TR

ADE

POLI

CIE

S –

Im

port

mea

sure

s -

non-

tariff

Viet

Nam

Sept

embe

rSo

ybea

ns,

whe

atTh

e U

.S. G

over

nmen

t rep

orte

d th

at it

rece

ived

non

-com

plia

nce

notifi

catio

ns fr

om V

iet N

am’s

Min

istry

of

Agr

icul

ture

reg

ardi

ng w

heat

and

soy

bean

con

sign

men

ts c

onta

min

ated

with

see

ds o

f pe

renn

ial

wee

d ci

rsiu

m a

rven

se. R

epor

tedl

y, Vi

et N

am’s

auth

oriti

es in

form

ed th

at, s

tarti

ng 1

Nov

embe

r 201

8,

the

coun

try w

ould

ena

ct s

trict

pla

nt q

uara

ntin

e m

easu

res,

incl

udin

g th

e re

ject

ion

of c

onta

min

ated

sh

ipm

ents

.

92TR

ADE

POLI

CIE

S –

Im

port

mea

sure

s - t

ariff

s &

levie

s

Indi

aFe

brua

ryFo

od &

pr

oces

sed

food

pr

oduc

ts

The

Gov

ernm

ent o

f Ind

ia m

odifi

ed it

s gen

eral

levi

es c

harg

es o

n al

l impo

rts a

s fol

low

s: th

e 2%

Edu

catio

n C

ess

and

the

1% S

econ

dary

and

Hig

her E

duca

tion

Ces

s w

ere

abol

ishe

d an

d re

plac

ed w

ith a

Soc

ial

Wel

fare

Sur

char

ge o

f 10

perc

ent o

f the

bas

ic c

usto

ms

duty

cha

rged

on

impo

rts, i

nclu

ding

pur

chas

es

of fo

od a

nd p

roce

ssed

food

pro

duct

s. T

he n

ew le

vy h

as e

nter

ed in

to e

ffect

on

2 Fe

brua

ry 2

018.

93TR

ADE

POLI

CIE

S –

Im

port

mea

sure

s - t

ariff

s &

levie

s

Indi

aFe

brua

rySe

lect

ed

vege

tabl

e oi

ls

On

2 Fe

brua

ry 2

018,

the

impo

rt ta

riff fo

r sel

ecte

d cr

ude

vege

tabl

e oi

ls h

as b

een

rais

ed fr

om 1

2.5

perc

ent

to 3

0 pe

rcen

t, w

hile

the

dut

y fo

r th

e co

rresp

ondi

ng r

efine

d oi

ls w

as in

crea

sed

from

20

perc

ent

to

35 p

erce

nt. T

he ta

x ris

e co

ncer

ns o

il fro

m c

otto

nsee

d, s

afflow

erse

ed, l

inse

ed, c

asto

rsee

d, s

esam

e se

ed, p

alm

kern

el, c

ocon

ut, o

live,

gro

undn

ut a

nd m

aize

, i.e

. tho

se o

ils th

at w

ere

excl

uded

from

last

ye

ar’s

tax

hike

s (s

ee M

PPU

Sep

. & D

ec.’1

7).

Oilcrops complex: Policy changes and industry measures - Annual compendium 2018 21

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n*94

TRAD

E PO

LIC

IES

–

Impo

rt m

easu

res

- tar

iffs

& le

vies

Indi

aM

arch

Palm

oil

The

impo

rt du

ties

for

crud

e an

d re

fined

pal

m o

il –

whi

ch w

ere

rais

ed t

wic

e la

st y

ear

– ha

ve b

een

incr

ease

d fu

rther

, with

effe

ct fr

om 1

Mar

ch 2

018.

The

tariff

s fo

r cru

de a

nd re

fined

pal

m o

il w

ere

rais

ed

to, r

espe

ctiv

ely,

44 p

erce

nt a

nd 5

4 pe

rcen

t (fr

om p

revi

ousl

y 30

per

cent

and

40

perc

ent)

– i.e

. the

hi

ghes

t lev

el in

mor

e th

an a

dec

ade.

The

third

incr

ease

in ta

riffs

in le

ss th

an s

ix m

onth

is m

eant

to p

ush

up d

omes

tic p

rices

of e

dibl

e oi

ls a

nd b

ack

loca

l oils

eeds

pric

es, i

n a

bid

to s

timul

ate

loca

l oils

eed

prod

uctio

n an

d he

lp c

urb

edib

le o

il im

ports

. Ind

ia is

the

wor

ld’s

top

impo

rter o

f pal

m o

il.

95TR

ADE

POLI

CIE

S –

Im

port

mea

sure

s - t

ariff

s &

levie

s

Indi

aJu

neSo

y-,

sunfl

ower

-, gr

ound

nut-

& ra

pese

ed- o

il

In J

une,

the

Ind

ian

Gov

ernm

ent

furth

er r

aise

d th

e im

port

dutie

s fo

r cr

ude

and

refin

ed s

oybe

an,

sunfl

ower

, gro

undn

ut a

nd ra

pese

ed o

il (s

ee a

lso M

PPU

Mar

.’18)

. At 3

5 pe

rcen

t for

refin

ed g

rade

s an

d 45

per

cent

for c

rude

gra

des,

the

tariff

s fo

r the

refe

renc

ed o

ils n

ow s

tand

at t

he h

ighe

st le

vel i

n m

ore

than

a d

ecad

e –

just

as

the

coun

try’s

palm

oil

impo

rt ta

riff. T

he m

easu

re is

aim

ed a

t cur

bing

impo

rts

whi

le p

rote

ctin

g th

e in

tere

sts

of th

e co

untry

’s oi

lsee

d gr

ower

s an

d pr

oces

sors

. Une

xpec

tedl

y, si

nce

the

hike

in d

utie

s, s

harp

incr

ease

s in

edi

ble

oils

del

iver

ies

from

Ban

glad

esh

and

Sri L

anka

hav

e be

en

repo

rted,

mai

nly

invo

lvin

g sh

ipm

ents

of p

alm

oil

orig

inat

ing

in In

done

sia

and

Mal

aysi

a. A

ppar

ently

, tra

ders

hav

e ta

ken

adva

ntag

e of

the

Sout

h As

ian

Free

Trad

e Ag

reem

ent (

SAFT

A), w

hich

, by

mai

ntai

ning

a

duty

-free

zon

e in

the

regi

on, a

llow

ed tr

ader

s to

circ

umve

nt In

dia’

s hi

gh im

port

tariff

s.

96TR

ADE

POLI

CIE

S –

Im

port

mea

sure

s - t

ariff

s &

levie

s

Paki

stan

April

Soyb

ean

oil

Paki

stan

’s fis

cal b

udge

t for

201

8/19

incl

udes

pro

visi

ons

for a

rise

in th

e cu

stom

dut

y on

cru

de s

oybe

an

oil f

rom

form

erly

PKR

9 0

50 p

er to

nne

to P

KR 1

2 00

0 (U

SD 7

3 an

d 97

resp

ectiv

ely)

. In

addi

tion,

the

Gov

ernm

ent e

nvis

aged

an

incr

ease

in th

e ‘a

dditi

onal

cus

tom

dut

y’ a

pplie

d to

all

oils

and

fats

from

1

perc

ent t

o 2

perc

ent.

The

mea

sure

s ar

e ai

med

at p

rote

ctin

g lo

cal s

oft o

il pr

oduc

tion.

97TR

ADE

POLI

CIE

S –

Im

port

mea

sure

s - t

ariff

s &

levie

s

Philip

pine

sN

ovem

ber

Palm

oil

Follo

win

g a

shar

p ris

e in

the

vol

ume

of p

alm

oil

impo

rts f

rom

Mal

aysi

a an

d In

done

sia

– w

hich

is

belie

ved

to h

ave

led

to a

dec

line

in d

omes

tic p

rices

of c

ocon

ut a

nd d

eriv

ed p

rodu

cts

– th

e Ph

ilippi

ne

Gov

ernm

ent

has

initi

ated

ant

i-dum

ping

inv

estig

atio

ns,

loca

l m

edia

rep

orte

d. C

urre

ntly,

pal

m o

il fro

m M

alay

sia

and

Indo

nesi

a en

ters

the

Philip

pine

s du

ty-fr

ee, i

n lin

e w

ith th

e AS

EAN

Tra

de G

oods

Ag

reem

ent.

Repo

rtedl

y, un

der

WTO

rul

es,

the

coun

try m

ay t

empo

raril

y im

pose

pro

tect

ive

tariff

s,

invo

king

a c

laim

of i

njur

y to

its

indu

stry

.

98TR

ADE

POLI

CIE

S –

Im

port

mea

sure

s - t

ariff

s &

levie

s

Turk

eyJu

neSu

nflow

erse

ed,

sunfl

ower

oil

To s

timul

ate

impo

rts a

nd e

nsur

e th

at d

omes

tic d

eman

d fo

r edi

ble

oils

is m

et, t

he G

over

nmen

t dec

ided

to

tem

pora

rily

low

er th

e im

port

tariff

s fo

r sun

flow

er s

eed

and

oil.

From

5 J

une

to 1

Aug

ust,

the

impo

rt du

ty fo

r the

see

d w

as re

duce

d fro

m 2

7 to

13

perc

ent,

whi

le th

at fo

r oil

stoo

d at

23

perc

ent i

nste

ad o

f 36

per

cent

.

99TR

ADE

POLI

CIE

S –

Im

port

mea

sure

s - t

ariff

s &

levie

s

Turk

eyJu

neSu

nflow

er-s

eed/

oil/m

eal

As p

art o

f mea

sure

s to

sust

ain

the v

alue

of t

he co

untry

’s cu

rrenc

y vis

-à-v

is th

e US

dolla

r, the

Gov

ernm

ent

of T

urke

y de

cide

d to

leav

e im

port

dutie

s on

sun

flow

er s

eed,

oil a

nd m

eal a

t the

ir cu

rrent

, red

uced

leve

l of

, res

pect

ivel

y, 13

per

cent

, 23

perc

ent a

nd z

ero.

Orig

inal

ly, th

e te

mpo

rary

tariff

redu

ctio

n w

as m

eant

to

end

on

1 Au

gust

201

8 (s

ee M

PPU

Aug

.’18)

.

100

TRAD

E PO

LIC

IES

–

Impo

rt m

easu

res

- tar

iffs

& le

vies

Turk

eyDe

cem

ber

Sunfl

ower

seed

The

Turk

ish

Gov

ernm

ent h

as a

ppro

ved,

for t

he p

erio

d Ja

nuar

y–Ju

ne 2

019,

a 3

00 th

ousa

nd to

nnes

dut

y-fre

e qu

ota

for s

unflo

wer

seed

impo

rts, w

hich

hab

itual

ly a

ttrac

t a ta

x of

USD

59

per t

onne

. Rep

orte

dly,

the

mea

sure

is a

imed

at s

uppo

rting

dom

estic

cru

sh o

pera

tions

.

101

TRAD

E PO

LIC

IES

–

Expo

rt m

easu

res

- tar

iff

& no

n-ta

riff

Arge

ntin

aJa

nuar

ySo

ybea

ns,

soym

eal,

soyo

ilIn

line

with

ple

dges

mad

e in

Oct

ober

201

6 (s

ee M

PPU

Nov

.’16)

, the

Gov

ernm

ent l

ower

ed th

e co

untry

’s ex

port

tax

on s

oybe

an b

y 0.

5 pe

rcen

tage

poi

nts,

to 2

9.5

perc

ent,

effec

tive

2 Ja

nuar

y 20

18. F

or th

e ne

xt

two

year

s, th

e ta

x w

ill be

redu

ced

by a

furth

er 0

.5 p

erce

ntag

e po

int e

ach

mon

th, e

vent

ually

set

tling

at

18 p

erce

nt in

Dec

embe

r 201

9. T

he s

ame

half-

poin

t-per

-mon

th re

duct

ion

will

appl

y to

the

expo

rt ta

x on

so

ymea

l and

soy

oil,

whi

ch w

as lo

wer

ed to

26.

5 pe

rcen

t in

Janu

ary

and

will

drop

to 1

5 pe

rcen

t ove

r the

ne

xt tw

o ye

ars.

Rep

orte

dly,

the

tax

cut i

s pa

rt of

a n

umbe

r of m

easu

res

take

n ov

er th

e la

st tw

o ye

ars

to in

crea

se c

ompe

titiv

enes

s an

d pr

edic

tabi

lity

in th

e oi

lcro

ps s

ecto

r.

22 Oilcrops complex: Policy changes and industry measures - Annual compendium 2018

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n*10

2TR

ADE

POLI

CIE

S –

Ex

port

mea

sure

s - t

ariff

&

non-

tariff

Arge

ntin

aAp

rilSo

ybea

ns,

soyb

ean

prod

ucts

From

6 A

pril

2018

, Arg

entin

a’s

expo

rt ta

x on

soy

bean

and

soy

bean

pro

duct

s is

app

lied

at th

e da

te o

f sh

ipm

ent a

s op

pose

d to

the

day

a pu

rcha

se c

ontra

ct is

sig

ned.

The

cha

nge

allo

ws

expo

rters

to ta

ke

adva

ntag

e of

the

mon

thly

tax

cut

s th

at a

re u

nder

impl

emen

tatio

n si

nce

Janu

ary

2018

(see

MPP

U

Mar

.’18)

, thu

s en

cour

agin

g fo

rwar

d sa

les.

103

TRAD

E PO

LIC

IES

–

Expo

rt m

easu

res

- tar

iff

& no

n-ta

riff

Arge

ntin

aAu

gust

Soyb

eans

, su

nflow

erse

ed,

grou

ndnu

t (in

cl.

resp

ectiv

e oi

ls/

mea

ls)

In m

id-A

ugus

t, as

par

t of a

wid

er fi

scal

tigh

teni

ng p

rogr

amm

e, th

e Ar

gent

inia

n G

over

nmen

t sus

pend

ed

for s

ix m

onth

its

polic

y of

gra

dual

ly re

duci

ng e

xpor

t tax

es fo

r soy

mea

l and

soy

oil.

Subs

eque

ntly,

on

3 Se

ptem

ber,

the

Gov

ernm

ent r

educ

ed th

e ta

x ap

plie

d to

shi

pmen

ts o

f all

thre

e, s

oybe

ans,

soy

mea

l an

d so

yoil,

to 1

8 pe

rcen

t – fr

om th

e pr

evai

ling

leve

ls o

f, re

spec

tivel

y, 25

.5 p

erce

nt, 2

3 pe

rcen

t and

23

per

cent

. Sim

ulta

neou

sly,

a ne

w e

xpor

t lev

y of

12

perc

ent w

as in

trodu

ced,

with

a m

axim

um li

mit

of 4

ARS

(11

US

cent

s) fo

r eac

h U

S do

llar i

n ex

port

valu

e. A

pplie

d to

all

prim

ary

prod

uct e

xpor

ts a

nd

driv

en p

rimar

ily b

y tre

asur

y ne

eds,

the

latte

r lev

y is

add

ed to

the

18 p

erce

nt e

xpor

t tax

in p

lace

for

soyb

eans

and

der

ived

pro

duct

s. B

ased

on

the

expo

rt pr

ices

and

exc

hang

e ra

te le

vels

pre

vailin

g at

the

begi

nnin

g of

Sep

tem

ber,

soyb

eans

and

der

ived

pro

duct

s ha

ve s

een

an e

ffect

ive

tax

hike

of r

ough

ly

3 pe

rcen

tage

poi

nts.

It is

impo

rtant

to n

ote

that

, with

the

intro

duct

ion

of a

uni

form

tax

thro

ugho

ut th

e so

ybea

n co

mpl

ex, t

he c

ount

ry’s

crus

hing

indu

stry

no

long

er a

vails

of t

he p

rote

ctio

n pr

evio

usly

enj

oyed

in

form

of t

ax d

iffer

entia

ls. C

onve

rsel

y, th

e re

lativ

e ex

port

com

petit

iven

ess

of s

oybe

ans

has

impr

oved

. Th

e at

tract

iven

ess

of s

oybe

ans

expo

rts h

as a

lso

impr

oved

rela

tive

to g

rain

s, w

hich

cou

ld le

ad to

larg

er

than

orig

inal

ly e

xpec

ted

soyb

ean

plan

tings

in th

e im

min

ent 2

018/

19 s

easo

n. A

s fo

r the

oth

er o

ilsee

ds,

the

new

4 A

RS e

xpor

t lev

y al

so a

pplie

s to

sun

flow

erse

ed a

nd g

roun

dnut

, whe

reas

onl

y 3

ARS

(8 U

S ce

nt) a

re a

sses

sed

on th

e re

spec

tive

oils

and

mea

ls. T

he lo

wer

rate

als

o ap

plie

s to

bio

dies

el e

xpor

ts.

The

new

tax

rate

s an

d le

vies

are

exp

ecte

d to

sta

y in

pla

ce u

ntil

31 D

ecem

ber 2

020.

104

TRAD

E PO

LIC

IES

–

Expo

rt m

easu

res

- tar

iff

& no

n-ta

riff

Chi

naO

ctob

erSo

ymea

lTr

ade

miti

gatio

n:

With

a v

iew

to

prot

ect

dom

estic

sup

plie

s, o

n 1

Nov

embe

r, th

e G

over

nmen

t di

scon

tinue

d an

11

perc

ent v

alue

-add

ed ta

x re

bate

hith

erto

app

lied

to s

oym

eal e

xpor

ts. T

he m

ove

is

part

of a

set

of m

easu

res

mea

nt to

miti

gate

the

impa

ct o

f Chi

na’s

reta

liato

ry ta

x on

U.S

. soy

bean

s on

do

mes

tic m

arke

ts, w

hile

redu

cing

the

coun

try’s

relia

nce

on im

porte

d so

ybea

ns fo

r fee

d.

105

TRAD

E PO

LIC

IES

–

Expo

rt m

easu

res

- tar

iff

& no

n-ta

riff

Indi

aJa

nuar

ySo

ymea

lIn

Dec

embe

r 201

7, th

e G

over

nmen

t rai

sed

the

expo

rt in

cent

ive

for s

oym

eal s

hipm

ents

from

5 p

erce

nt

to 7

per

cent

. Und

er th

e co

untry

’s fo

reig

n tra

de p

olic

y, se

lect

ed “

high

pot

entia

l” go

ods

bene

fit fr

om

expo

rt re

war

ds, p

ayab

le a

s a

perc

enta

ge o

f rea

lized

FO

B va

lues

.

106

TRAD

E PO

LIC

IES

–

Expo

rt m

easu

res

- tar

iff

& no

n-ta

riff

Indi

aM

arch

Edib

le o

ilsEx

porta

tion

of v

eget

able

oils

is s

et t

o be

libe

raliz

ed f

urth

er in

Ind

ia.

Afte

r lif

ting

the

ban

on b

ulk

expo

rts o

f sel

ecte

d ve

geta

ble

oils

in M

arch

201

7 (s

ee M

PPU

Apr

.’17)

, the

Gov

ernm

ent n

ow d

ecid

ed

to a

llow

bul

k ex

ports

of a

ll ed

ible

oils

with

the

exce

ptio

n of

mus

tard

seed

oil.

Bei

ng a

n ite

m o

f mas

s co

nsum

ptio

n in

the

coun

try, m

usta

rd o

il m

ay o

nly

be e

xpor

ted

in c

onsu

mer

pac

ks u

p to

5 k

g an

d at

a

min

imum

pric

e of

USD

900

per

tonn

e. T

he n

ew p

olic

y is

aim

ed a

t enc

oura

ging

oils

eed

prod

uctio

n by

ope

ning

add

ition

al m

arke

ting

aven

ues

for e

dibl

e oi

ls. M

oreo

ver,

the

mea

sure

s m

ay c

ontri

bute

to

bette

r util

izatio

n of

idle

cap

acity

in th

e co

untry

’s ed

ible

oil

indu

stry

. How

ever

, mar

ket e

xper

ts d

o no

t ex

pect

size

able

incr

ease

s in

shi

pmen

ts in

the

near

term

, as

dom

estic

edi

ble

oil p

rices

cur

rent

ly ra

nge

sign

ifica

ntly

abo

ve w

orld

mar

ket l

evel

s.

107

TRAD

E PO

LIC

IES

–

Expo

rt m

easu

res

- tar

iff

& no

n-ta

riff

Indo

nesi

aM

arch

Palm

oil

Unt

il en

d M

arch

201

8, In

done

sia’

s sl

idin

g ex

port

tax

on c

rude

pal

m o

il w

ill st

ay a

t zer

o, g

iven

that

(fo

r the

ele

vent

h m

onth

in s

ucce

ssio

n) In

done

sia’

s re

fere

nce

pric

e re

mai

ned

belo

w th

e th

resh

old

that

tri

gger

s ta

xatio

n. Ir

resp

ectiv

e of

the

zero

exp

ort t

ax, I

ndon

esia

’s ex

ports

rem

ain

subj

ect t

o a

fixed

levy

of

USD

50

per t

onne

(see

MPP

U A

ug.’1

5).

108

TRAD

E PO

LIC

IES

–

Expo

rt m

easu

res

- tar

iff

& no

n-ta

riff

Indo

nesi

aM

ayPa

lm o

ilIn

Indo

nesi

a, w

here

ben

chm

ark

valu

es fo

r pal

m o

il re

mai

ned

belo

w th

e U

SD 7

50 p

er to

nne

thre

shol

d th

at tr

igge

rs ta

xatio

n , t

he ta

x on

cru

de p

alm

oil

expo

rts h

as b

een

kept

at z

ero

for b

oth

April

and

May

–

mar

king

the

thirt

eent

h m

onth

in s

ucce

ssio

n w

ith n

o ex

port

tax.

Oilcrops complex: Policy changes and industry measures - Annual compendium 2018 23

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n*10

9TR

ADE

POLI

CIE

S –

Ex

port

mea

sure

s - t

ariff

&

non-

tariff

Indo

nesi

aAu

gust

Palm

oil

In In

done

sia,

the

expo

rt ta

x on

cru

de p

alm

oil

stay

s at

zer

o, a

s be

nchm

ark

pric

es re

mai

ned

belo

w th

e th

resh

old

that

trig

gers

taxa

tion.

The

mon

th o

f Aug

ust m

arks

the

sixt

eent

h m

onth

in s

ucce

ssio

n w

ith

no e

xpor

t tax

.

110

TRAD

E PO

LIC

IES

–

Expo

rt m

easu

res

- tar

iff

& no

n-ta

riff

Indo

nesi

aO

ctob

erPa

lm o

ilIn

Indo

nesi

a, th

e ex

port

tax

on c

rude

pal

m o

il re

mai

ned

at z

ero,

as

benc

hmar

k pr

ices

con

tinue

d to

ra

nge

belo

w th

e th

resh

old

that

trig

gers

taxa

tion.

The

mon

th o

f Oct

ober

mar

ks th

e ei

ghte

enth

mon

th in

su

cces

sion

with

no

expo

rt ta

x in

Indo

nesi

a.

111

TRAD

E PO

LIC

IES

–

Expo

rt m

easu

res

- tar

iff

& no

n-ta

riff

Indo

nesi

aO

ctob

erPr

imar

y pr

oduc

tsAs

par

t of p

olic

ies

to a

ddre

ss o

n-go

ing

curre

ncy

and

curre

nt a

ccou

nt p

robl

ems,

the

coun

try’s

trade

m

inis

try h

as la

id o

ut n

ew ru

les

that

requ

ire c

omm

odity

exp

orte

rs to

gua

rant

ee fu

ndin

g fo

r shi

pmen

ts

excl

usiv

ely

thro

ugh

loca

l ban

ks. T

he n

ew re

gula

tion

has

take

n eff

ect o

n 7

Oct

ober

.

112

TRAD

E PO

LIC

IES

–

Expo

rt m

easu

res

- tar

iff

& no

n-ta

riff

Indo

nesi

aN

ovem

ber

Palm

oil

Con

cern

ed a

bout

the

stea

dy, s

harp

fall i

n pa

lm o

il exp

ort p

rices

and

its

adve

rse

impa

ct o

n th

e co

untry

’s ex

port-

orie

nted

oil

palm

indu

stry

, the

Indo

nesi

an G

over

nmen

t dec

ided

to s

uspe

nd th

e co

untry

’s le

vy

on p

alm

oil

expo

rts, w

hich

am

ount

s to

USD

50

and

USD

20–

40 p

er to

nne

resp

ectiv

ely

for c

rude

and

re

fined

pal

m o

il. T

he m

ove

is a

imed

at m

aint

aini

ng th

e pr

oduc

ts’ c

ompe

titiv

enes

s in

ove

rsea

s m

arke

ts.

Intro

duce

d in

201

5, th

e le

vy is

use

d to

sub

sidi

ze th

e co

untry

’s bi

odie

sel p

rogr

amm

e as

wel

l as

sect

or

deve

lopm

ent a

ctiv

ities

, suc

h as

pal

m re

plan

ting

sche

mes

(see

MPP

U J

uly’

15).

Repo

rtedl

y, th

e le

vy w

ill be

rein

trodu

ced

as p

rices

rise

: onc

e pa

lm o

il pr

ices

reco

ver t

o U

SD 5

00 p

er to

nne,

exp

orts

of c

rude

an

d re

fined

pal

m o

il w

ill be

cha

rged

with

, res

pect

ivel

y, U

SD 2

5 an

d U

SD 5

–10

per

tonn

e, w

here

as

levi

es o

f USD

20-

50 w

ill be

col

lect

ed w

hen

pric

es re

ach

at le

ast U

SD 5

50 p

er to

nne.

Mea

nwhi

le, t

he

expo

rt ta

x on

cru

de p

alm

oil

rem

aine

d at

zer

o in

Nov

embe

r an

d De

cem

ber,

as b

ench

mar

k pr

ices

co

ntin

ued

to r

ange

bel

ow t

he t

hres

hold

tha

t tri

gger

s ta

xatio

n. T

he m

onth

of

Dece

mbe

r m

arks

the

tw

entie

th m

onth

in s

ucce

ssio

n w

ith n

o ex

port

tax

in In

done

sia.

113

TRAD

E PO

LIC

IES

–

Expo

rt m

easu

res

- tar

iff

& no

n-ta

riff

Indo

nesi

aDe

cem

ber

Palm

oil

The

Gov

ernm

ent o

f Ind

ones

ia m

odifi

ed th

e pa

ram

eter

s ap

plyi

ng to

the

colle

ctio

n of

levi

es o

n pa

lm o

il ex

ports

(see

also

MPP

U D

ec.’1

8). W

hen

the

palm

oil b

ench

mar

k pr

ice

falls

in a

rang

e of

USD

570

–619

pe

r ton

ne, t

he le

vy w

ill am

ount

to U

SD 1

0–25

per

tonn

e, w

here

as U

SD 2

0–50

will

be c

olle

cted

whe

n th

e re

fere

nce

pric

e ex

ceed

s U

SD 6

19. P

revi

ousl

y, ex

porte

rs p

aid

USD

20-

50 p

er to

nne

rega

rdle

ss o

f pr

ice

leve

ls. S

ince

last

Nov

embe

r, w

hen

palm

oil

pric

es d

ropp

ed b

elow

the

USD

570

thre

shol

d, n

o ex

port

levi

es h

ave

been

cha

rged

in a

bid

to m

aint

ain

the

com

petit

iven

ess

of th

e co

untry

’s pa

lm o

il ex

ports

. The

trad

e m

inis

try’s

refe

renc

e pr

ice

for D

ecem

ber s

tood

at U

SD 5

49 p

er to

nne.

(NB:

Whe

n th

e pa

lm o

il ref

eren

ce p

rice

exce

eds

USD

750

, Ind

ones

ia a

lso

char

ges

a ta

x on

cru

de p

alm

oil e

xpor

ts;

the

rule

s go

vern

ing

that

tax

have

rem

aine

d un

chan

ged)

.

114

TRAD

E PO

LIC

IES

–

Expo

rt m

easu

res

- tar

iff

& no

n-ta

riff

Indo

nesi

aDe

cem

ber

Palm

oil

In In

done

sia,

pal

m o

il ben

chm

ark

pric

es c

ontin

ued

to ra

nge

belo

w th

e th

resh

olds

that

trig

ger t

axat

ion.

Ac

cord

ingl

y, in

Jan

uary

201

9, th

e ex

port

tax

on c

rude

pal

m o

il re

mai

ns a

t zer

o fo

r the

twen

ty-s

econ

d m

onth

in s

ucce

ssio

n.

115

TRAD

E PO

LIC

IES

–

Expo

rt m

easu

res

- tar

iff

& no

n-ta

riff

Mal

aysi

aJa

nuar

yPa

lm o

ilM

alay

sia

deci

ded

to s

uspe

nd it

s va

riabl

e ta

x fo

r a p

erio

d of

thre

e m

onth

s, s

tarti

ng 8

Jan

uary

201

8 (a

lthou

gh ta

xatio

n w

ould

be

rein

trodu

ced

if do

mes

tic p

alm

oil

stoc

ks w

ere

to d

rop

belo

w 1

.6 m

illion

to

nnes

). Th

e ta

x su

spen

sion

was

im

plem

ente

d in

a b

id t

o st

imul

ate

inte

rnat

iona

l de

man

d, c

urb

dom

estic

sto

cks

and

supp

ort t

he p

rice

of M

alay

sian

pal

m o

il. T

he la

tter h

as fa

llen

to 1

6-m

onth

low

s in

Dec

embe

r 201

7, w

hile

inve

ntor

ies

clim

bed

to tw

o-ye

ar h

ighs

. By

mak

ing

Mal

aysi

an p

alm

oil

mor

e co

mpe

titiv

e, th

e ta

x su

spen

sion

has

pro

mpt

ed a

con

spic

uous

rise

in th

e co

untry

’s sh

ipm

ents

sin

ce la

st

Janu

ary,

in p

artic

ular

with

rega

rd to

sal

es to

pric

e se

nsiti

ve m

arke

ts s

uch

as In

dia

and

Chi

na.

24 Oilcrops complex: Policy changes and industry measures - Annual compendium 2018

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n*11

6TR

ADE

POLI

CIE

S –

Ex

port

mea

sure

s - t

ariff

&

non-

tariff

Mal

aysi

aM

ayPa

lm o

ilM

alay

sia

exte

nded

the

3-m

onth

tax

sus

pens

ion

intro

duce

d in

ear

ly J

anua

ry u

ntil

the

end

of A

pril,

in

a b

id t

o m

aint

ain

Mal

aysi

an p

alm

oil

expo

rts c

ompe

titiv

e (s

ee M

PPU

Mar

.’18)

. Acc

ordi

ng t

o th

e M

alay

sian

Pal

m O

il Bo

ard,

exp

ort t

axat

ion

has

resu

med

on

1 M

ay, w

ith ra

tes

set a

t 5 p

erce

nt fo

r bot

h M

ay a

nd J

une.

117

TRAD

E PO

LIC

IES

–

Expo

rt m

easu

res

- tar

iff

& no

n-ta

riff

Mal

aysi

aAu

gust

Palm

oil

Afte

r su

spen

ding

its

duty

on

palm

oil

expo

rts f

or f

our

mon

th a

t th

e st

art

of t

he y

ear

to s

timul

ate

dem

and

and

supp

ort p

rices

, Mal

aysi

a re

intro

duce

d ex

port

taxa

tion

at 5

per

cent

in M

ay. W

hile

the

rate

re

mai

ned

unch

ange

d in

Jun

e an

d Ju

ly, it

was

low

ered

to 4

.5 p

erce

nt in

Aug

ust,

refle

ctin

g a

slid

e in

the

refe

renc

e m

arke

t pric

e.

118

TRAD

E PO

LIC

IES

–

Expo

rt m

easu

res

- tar

iff

& no

n-ta

riff

Mal

aysi

aO

ctob

erPa

lm o

ilAf

ter f

resh

dro

ps in

the

refe

renc

e m

arke

t pric

e fo

r pal

m o

il, M

alay

sia

susp

ende

d its

exp

ort t

ax o

n th

e co

mm

odity

for t

he m

onth

s of

Sep

tem

ber a

nd O

ctob

er. S

ince

the

begi

nnin

g of

this

yea

r, pa

lm o

il exp

ort

taxe

s ha

ve o

nly

been

app

lied

durin

g th

e M

ay–A

ugus

t per

iod.

119

TRAD

E PO

LIC

IES

–

Expo

rt m

easu

res

- tar

iff

& no

n-ta

riff

Mal

aysi

aN

ovem

ber

Palm

oil

Follo

win

g fre

sh d

rops

in th

e re

fere

nce

mar

ket p

rice

for p

alm

oil,

Mal

aysi

a de

cide

d to

kee

p its

exp

ort

tax

on th

e co

mm

odity

at z

ero

for t

he m

onth

s of

Nov

embe

r and

Dec

embe

r.

120

TRAD

E PO

LIC

IES

–

Expo

rt m

easu

res

- tar

iff

& no

n-ta

riff

Mal

aysi

aDe

cem

ber

Palm

oil

In M

alay

sia,

pal

m o

il be

nchm

ark

pric

es c

ontin

ued

to ra

nge

belo

w th

e th

resh

olds

that

trig

ger t

axat

ion.

Ac

cord

ingl

y, in

Jan

uary

201

9, th

e ex

port

tax

on c

rude

pal

m o

il rem

ains

at z

ero

for t

he fi

fth c

onse

cutiv

e m

onth

.

121

TRAD

E PO

LIC

IES

–

Expo

rt m

easu

res

- tar

iff

& no

n-ta

riff

Ukr

aine

May

Soyb

eans

, ra

pese

edTh

e ab

oliti

on o

f the

VAT

refu

nd o

n ex

ports

of s

oybe

ans

and

rape

seed

(see

MPP

U J

an.’1

7) h

as b

een

post

pone

d to

31

Dece

mbe

r 20

21, b

ut o

nly

for

farm

ers

and

com

pani

es e

xpor

ting

thei

r ow

n cr

ops

– im

plyi

ng th

at tr

ader

s w

ill no

long

er b

e el

igib

le fo

r ref

unds

as

of 1

Sep

tem

ber 2

018.

In th

e ca

se o

f su

nflow

erse

ed, a

ll ta

x re

fund

s ha

ve b

een

susp

ende

d si

nce

Mar

ch 2

018.

122

TRAD

E PO

LIC

IES

–

Trad

e di

sput

esAr

gent

ina,

Pe

ruN

ovem

ber

Biod

iese

lAr

gent

ina

requ

este

d fo

rmal

con

sulta

tions

with

Per

u at

the

WTO

ove

r th

e an

ti-du

mpi

ng d

utie

s Pe

ru

put i

n pl

ace

on im

ports

of b

iodi

esel

from

Arg

entin

a in

Feb

ruar

y 20

16 (s

ee M

PPU

Nov

.’16)

. Prio

r to

the

intro

duct

ion

of th

e tra

de b

arrie

r, Pe

ru re

pres

ente

d Ar

gent

ina’

s se

cond

larg

est e

xpor

t mar

ket a

fter t

he

Uni

ted

Stat

es.

123

TRAD

E PO

LIC

IES

–

Trad

e di

sput

esEu

rope

an

Uni

on,

Indo

nesi

a

Janu

ary

Biod

iese

lIn

Aug

ust

2015

, the

WTO

’s di

sput

e se

ttlem

ent

body

set

up

a pa

nel t

o ex

amin

e w

heth

er t

he E

U’s

anti-

dum

ping

dut

ies

on b

iodi

esel

impo

rts fr

om In

done

sia

– in

trodu

ced

in 2

013

for fi

ve y

ears

– w

ere

cons

iste

nt w

ith th

e ex

istin

g in

tern

atio

nal t

rade

agr

eem

ents

(see

MPP

U O

ct.’1

5). T

he p

anel

rele

ased

its

rulin

g in

Jan

uary

201

8. L

arge

ly u

phol

ding

cla

ims

by In

done

sia,

the

pane

l fou

nd th

e di

sput

ed m

easu

re

to b

e in

cons

iste

nt w

ith W

TO la

w a

nd re

com

men

ded

that

the

EU b

ring

the

mea

sure

into

con

form

ity w

ith

its o

blig

atio

ns u

nder

the

WTO

Ant

i-Dum

ping

Agr

eem

ent a

nd th

e G

ATT

1994

. The

EU

and

Indo

nesi

a m

ay a

ppea

l the

pan

el’s

findi

ngs,

in w

hich

eve

nt th

e W

TO’s

Appe

llate

Bod

y w

ould

hav

e to

revi

ew th

e ca

se. T

he la

test

rulin

g fo

llow

s la

st y

ear’s

WTO

find

ings

in fa

vour

of A

rgen

tina,

rega

rdin

g th

e EU

’s an

ti-du

mpi

ng d

utie

s on

bio

dies

el im

ports

from

that

cou

ntry

. In

that

inst

ance

, the

EU

agr

eed

to c

ut it

s im

port

tariff

s, w

hich

pro

mpt

ed a

resu

mpt

ion

in b

iodi

esel

impo

rts fr

om A

rgen

tina

(see

also

MPP

U N

ov.’1

6 &

Oct

.’17)

.

124

TRAD

E PO

LIC

IES

–

Trad

e di

sput

esEu

rope

an

Uni

on,

Arge

ntin

a

Janu

ary

Biod

iese

lTh

e Eu

rope

an C

omm

issi

on i

nfor

med

tha

t it

laun

ched

a n

ew i

nves

tigat

ion

conc

erni

ng i

mpo

rts o

f bi

odie

sel

orig

inat

ing

from

Arg

entin

a, c

iting

evi

denc

e su

bmitt

ed b

y th

e EU

’s bi

ofue

l in

dust

ry t

hat

Arge

ntin

e bi

odie

sel p

rodu

cers

ben

efit f

rom

sta

te s

ubsi

dies

, cau

sing

inju

ry to

EU

pro

duce

rs. A

llege

dly,

Arge

ntin

a’s

subs

idie

s co

me

in th

e fo

rm o

f arti

ficia

lly c

heap

goo

ds a

nd s

ervi

ces

(not

ably

soy

bean

s),

pric

e su

ppor

t for

bio

dies

el, d

irect

tran

sfer

s an

d pr

efer

entia

l loa

ns, a

nd g

over

nmen

t rev

enue

forg

one

or n

ot c

olle

cted

. By

com

paris

on, t

he a

nti-d

umpi

ng d

utie

s im

pose

d in

201

3 w

ere

rela

ted

to A

rgen

tina’

s di

ffere

ntia

l exp

ort

tax

syst

em.

The

Com

mis

sion

’s ne

w in

vest

igat

ion

has

to b

e co

nclu

ded

by e

nd

Febr

uary

201

9, w

hile

pro

visi

onal

ant

i-sub

sidy

dut

ies

may

be

appl

ied

from

Nov

embe

r 201

8 on

war

d.

Oilcrops complex: Policy changes and industry measures - Annual compendium 2018 25

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n*12

5TR

ADE

POLI

CIE

S –

Tr

ade

disp

utes

Euro

pean

U

nion

, Ar

gent

ina,

In

done

sia

Mar

chBi

odie

sel

Abid

ing

by a

rulin

g of

the

Euro

pean

Cou

rt of

Just

ice

(see

MPP

U N

ov.’1

6), t

he E

urop

ean

Com

mis

sion

has

re

mov

ed a

nti-d

umpi

ng d

utie

s on

bio

dies

el im

ports

from

13

Arge

ntin

e an

d In

done

sian

pro

duce

rs th

at

wer

e in

pla

ce s

ince

201

3. T

he C

omm

issi

on h

ad a

ppea

led

agai

nst t

he ru

ling,

but

dro

pped

the

petit

ion

earli

er th

is y

ear.

Also

the

WTO

had

rule

d in

favo

ur o

f cha

lleng

es fi

led

by A

rgen

tina

and

Indo

nesi

a (s

ee

MPP

U N

ov.’1

6 &

Mar

.’18)

. Not

with

stan

ding

, las

t Jan

uary

, the

Com

mis

sion

laun

ched

– u

pon

requ

est o

f th

e bl

oc’s

biod

iese

l pro

duce

rs –

a n

ew in

vest

igat

ion

on w

heth

er A

rgen

tine

prod

ucer

s be

nefit

from

sta

te

subs

idie

s (s

ee M

PPU

Mar

.’18)

. Ind

ustry

exp

erts

poi

nted

out

that

the

rece

nt re

sum

ptio

n of

low

-cos

t bi

odie

sel i

mpo

rts fr

om A

rgen

tina

and

Indo

nesi

a w

ould

impa

ct p

rofit

abilit

y fo

r Eur

opea

n pr

oduc

ers

– po

ssib

ly le

adin

g to

pro

duct

ion

cuts

and

hen

ce re

duce

d up

take

of r

apes

eed

oil,

the

EU’s

mai

n bi

odie

sel

feed

stoc

k.

126

TRAD

E PO

LIC

IES

–

Trad

e di

sput

esEu

rope

an

Uni

on,

Arge

ntin

a

May

Biod

iese

lIn

the

con

text

of

on-g

oing

tra

de i

nves

tigat

ions

reg

ardi

ng t

he a

llege

d su

bsid

izatio

n of

bio

dies

el

prod

uctio

n in

Arg

entin

a, th

e Eu

rope

an C

omm

issi

on o

rder

ed to

regi

ster

, as

of 2

5 M

ay 2

018,

all i

mpo

rts

of b

iodi

esel

from

Arg

entin

a. W

hile

the

deci

sion

doe

s not

pre

judg

e th

e ou

tcom

e of

the

case

, the

mea

sure

w

ould

fac

ilitat

e re

troac

tive

appl

icat

ion

of a

ny f

utur

e an

ti-su

bsid

y m

easu

res.

Rep

orte

dly,

sinc

e th

e in

vest

igat

ion’

s la

unch

last

Jan

uary

, bio

dies

el im

ports

from

Arg

entin

a ha

ve in

crea

sed

shar

ply,

espe

cial

ly

afte

r the

blo

c re

mov

ed a

nti-d

umpi

ng d

utie

s th

at h

ad b

een

in p

lace

sin

ce 2

013

(see

MPP

U M

ay’1

8).

127

TRAD

E PO

LIC

IES

–

Trad

e di

sput

esEu

rope

an

Uni

on,

Arge

ntin

a

Sept

embe

rBi

odie

sel

The

Euro

pean

Com

mis

sion

dec

ided

to p

ostp

one

the

intro

duct

ion

of p

rovi

sion

al c

ount

erva

iling

dutie

s on

impo

rts o

f alle

gedl

y su

bsid

ized

biod

iese

l fro

m A

rgen

tina

(see

also

MPP

U M

ay &

Aug

.’18)

. Des

pite

th

e pr

elim

inar

y fin

ding

tha

t Ar

gent

inia

n ex

ports

are

favo

ured

by

subs

idie

s an

d th

eref

ore

pote

ntia

lly

thre

aten

the

EU

’s bi

odie

sel i

ndus

try, t

he C

omm

issi

on in

form

ed t

hat

it in

tend

s to

col

lect

add

ition

al

info

rmat

ion

in o

rder

to

proc

eed

with

its

inve

stig

atio

ns.

Mar

ket

parti

cipa

nts

had

expe

cted

tha

t th

e C

omm

issi

on w

ould

col

lect

dut

ies

from

Oct

ober

. Acc

ordi

ngly,

Arg

entin

a’s

biod

iese

l shi

pmen

ts to

the

EU a

re re

porte

d to

hav

e dr

oppe

d in

rece

nt w

eeks

.

128

TRAD

E PO

LIC

IES

–

Trad

e di

sput

esEu

rope

an

Uni

on,

Arge

ntin

a

Dece

mbe

rBi

odie

sel

Acco

rdin

g to

med

ia re

ports

, the

Eur

opea

n C

omm

issi

on is

con

side

ring

to re

inst

ate

anti-

subs

idy

dutie

s on

impo

rts o

f bio

dies

el fr

om A

rgen

tina,

citi

ng a

n im

min

ent t

hrea

t of m

ater

ial i

njur

y ca

used

to th

e EU

’s bi

odie

sel i

ndus

try (s

ee a

lso M

PPU

Oct

.’17

& M

ar./O

ct.’1

8). R

epor

tedl

y, re

talia

tory

dut

ies

coul

d ra

nge

from

25

perc

ent t

o 33

, dep

endi

ng o

n th

e co

mpa

ny c

once

rned

. The

mov

e w

ould

requ

ire a

ppro

val b

y th

e bl

oc’s

mem

ber s

tate

s. T

he d

eadl

ine

for i

ntro

duci

ng d

efini

tive

mea

sure

s is

27

Febr

uary

201

9.

129

TRAD

E PO

LIC

IES

–

Trad

e di

sput

esIn

dia,

Uni

ted

Stat

esJu

lySo

ybea

n oi

l, pa

lm o

lein

, w

heat

In re

spon

se to

the

Uni

ted

Stat

es’ i

ntro

duct

ion

of h

ighe

r dut

ies

on im

ports

of s

teel

and

alu

min

ium

from

In

dia,

the

Gov

ernm

ent o

f Ind

ia h

as fi

led

a W

TO n

otifi

catio

n, w

hich

incl

udes

a li

st o

f US

prod

ucts

that

co

uld

be s

ubje

ct to

reta

liato

ry im

port

dutie

s. T

he li

st in

clud

es w

heat

, cru

de s

oybe

an o

il an

d re

fined

pa

lm o

lein

.

130

TRAD

E PO

LIC

IES

–

Trad

e di

sput

esU

nite

d St

ates

, Ar

gent

ina,

In

done

sia

Febr

uary

Biod

iese

lTh

e U

.S. D

epar

tmen

t of

Com

mer

ce (D

OC

) iss

ued

its fi

nal d

eter

min

atio

ns in

the

ant

i-dum

ping

dut

y in

vest

igat

ions

of

biod

iese

l im

ports

fro

m A

rgen

tina

and

Indo

nesi

a (s

ee a

lso M

PPU

Dec

.’17)

. DO

C

dete

rmin

ed th

at A

rgen

tine

and

Indo

nesi

an e

xpor

ters

sold

bio

dies

el in

the

Uni

ted

Stat

es a

t, re

spec

tivel

y, 60

–86

perc

ent a

nd 9

3–27

7 pe

rcen

t les

s th

an fa

ir va

lue.

Acc

ordi

ngly,

the

coun

try’s

cust

oms

office

s w

ill be

inst

ruct

ed to

col

lect

cas

h de

posi

ts fr

om im

porte

rs b

ased

on

thos

e fin

al ra

tes.

DO

C’s

dete

rmin

atio

n re

mai

ns s

ubje

ct to

a s

econ

d ru

ling

by th

e U

.S. I

nter

natio

nal T

rade

Com

mis

sion

(exp

ecte

d on

6 A

pril

2018

) on

whe

ther

U.S

. bio

dies

el p

rodu

cers

wer

e in

jure

d by

dum

ped

impo

rts. A

ccor

ding

to

med

ia

repo

rts, A

rgen

tina

and

Indo

nesi

a ar

e co

nsid

erin

g to

file

cas

es a

gain

st D

OC

at b

oth

the

WTO

and

the

U.S

. Cou

rt of

Inte

rnat

iona

l Tra

de. I

t is

impo

rtant

to n

ote

that

the

abov

e an

ti-du

mpi

ng d

utie

s ha

ve c

ome

in a

dditi

on to

fina

l ant

i-sub

sidy

(or c

ount

erva

iling)

dut

ies

impo

sed

last

yea

r on

the

sam

e pr

oduc

ts (s

ee

MPP

U D

ec.’1

7). W

ith c

ombi

ned

rate

s of

up

to 1

59 p

erce

nt fo

r Arg

entin

e bi

odie

sel a

nd 3

41 p

erce

nt fo

r In

done

sian

pro

duce

, im

ports

from

the

two

coun

tries

are

exp

ecte

d to

com

e to

a h

alt.

26 Oilcrops complex: Policy changes and industry measures - Annual compendium 2018

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n*13

1TR

ADE

POLI

CIE

S –

Tr

ade

disp

utes

Uni

ted

Stat

es,

Arge

ntin

a,

Indo

nesi

a

April

Biod

iese

lIn

Apr

il, th

e U

.S. I

nter

natio

nal T

rade

Com

mis

sion

ass

erte

d th

at b

iodi

esel

impo

rts fr

om A

rgen

tina

and

Indo

nesi

a ha

ve h

arm

ed th

e U

S in

dust

ry, t

here

by p

avin

g th

e w

ay fo

r the

app

licat

ion

of a

nti-d

umpi

ng

dutie

s as

det

erm

ined

by

the

U.S

. De

partm

ent

of C

omm

erce

las

t Fe

brua

ry (

see

MPP

U M

ar.’1

8).

Acco

rdin

g to

pre

ss re

ports

, Ind

ones

ian

biod

iese

l exp

orte

rs re

acte

d by

filin

g an

app

eal t

o th

e U

.S. C

ourt,

w

hile

the

Indo

nesi

an G

over

nmen

t is

cons

ider

ing

to s

ubm

it th

e ca

se to

the

Wor

ld T

rade

Org

aniza

tion.

132

TRAD

E PO

LIC

IES

–

Trad

e di

sput

esU

nite

d St

ates

, Ar

gent

ina

Nov

embe

rBi

odie

sel

The

U.S

. Dep

artm

ent o

f Com

mer

ce in

itiat

ed a

‘cha

nged

circ

umst

ance

s re

view

’ to

exam

ine

the

anti-

dum

ping

and

cou

nter

vailin

g du

ties

it pl

aced

on

impo

rts o

f Arg

entin

e bi

odie

sel i

n la

te 2

017

and

early

20

18 (s

ee M

PPU

Mar

. & M

ay’1

8). T

he re

view

pro

cess

has

bee

n op

ened

on

requ

est o

f the

Arg

entin

e G

over

nmen

t, fo

llow

ing

the

latte

r’s d

ecis

ion

to i)

rai

se t

he c

ount

ry’s

expo

rt ta

x on

soy

bean

-bas

ed

biod

iese

l, ii) l

ift th

e do

mes

tic b

iodi

esel

pric

e, a

nd iii

) low

er th

e co

untry

’s ex

port

tax

on so

ybea

n pr

oduc

ts

(see

MPP

U A

ug. &

Oct

.’18)

. A re

duct

ion

or re

peal

of t

he re

talia

tory

tariff

s ca

n be

exp

ecte

d to

lead

to

a re

sum

ptio

n of

bio

dies

el im

ports

fro

m A

rgen

tina,

whi

ch w

ould

like

ly h

urt

US

biod

iese

l pro

duce

rs

and

dam

pen

dom

estic

soy

bean

upt

ake.

A ‘c

hang

ed c

ircum

stan

ces

revi

ew’ c

an ta

ke u

p to

270

day

s,

mea

ning

that

a fi

nal d

eter

min

atio

n sh

ould

be

reac

hed

by A

ugus

t 201

9.

133

TRAD

E PO

LIC

IES

–

Trad

e di

sput

esU

nite

d St

ates

, C

hina

April

Soyb

eans

On

4 Ap

ril 2

018,

the

Chi

nese

Gov

ernm

ent p

ublis

hed

a pr

ovis

iona

l lis

t of t

ariff

s th

at, i

f im

plem

ente

d,

wou

ld a

pply

to s

elec

ted

agric

ultu

re a

nd fo

od im

ports

from

the

Uni

ted

Stat

es –

incl

udin

g so

ybea

ns. T

he

dutie

s w

ould

be

intro

duce

d in

reta

liatio

n of

pos

sibl

e U

S im

port

tariff

s co

ncer

ning

a n

umbe

r of C

hine

se

prod

ucts

. Chi

na –

the

wor

ld’s

larg

est s

oybe

an b

uyer

– s

atis

fies

90 p

erce

nt o

f its

soy

bean

requ

irem

ents

th

roug

h im

ports

, with

US

bean

s ac

coun

ting

for

mor

e th

an o

ne-th

ird o

f its

pur

chas

es. C

onsi

derin

g th

e im

porta

nce

of s

oybe

an t

rade

for

bot

h co

untri

es,

Chi

na’s

anno

unce

men

t tri

gger

ed t

empo

rary

pr

ices

resp

onse

s an

d sh

ifts

in b

uyin

g pa

ttern

s at

the

natio

nal a

nd g

loba

l lev

el. T

he tw

o co

untri

es a

re

enga

ged

in n

egot

iatio

ns a

imed

at s

ettli

ng th

eir t

rade

dis

pute

(whi

ch o

rigin

ated

from

a fi

eld

unre

late

d to

ag

ricul

tura

l mar

kets

), in

a b

id to

ave

rt re

cour

se to

reta

liato

ry ta

riff m

easu

res.

134

TRAD

E PO

LIC

IES

–

Trad

e di

sput

esU

nite

d St

ates

, C

hina

July

Soyb

eans

On

6 Ju

ly, a

fter s

ever

al ro

unds

of b

ilate

ral t

rade

talk

s, th

e U

nite

d St

ates

impo

sed

a 25

per

cent

impo

rt ta

riff o

n m

ostly

indu

stria

l Chi

nese

pro

duct

s w

orth

USD

34

billio

n, p

rom

ptin

g C

hina

to le

vy im

port

taxe

s on

the

sam

e va

lue

of U

S pr

oduc

ts, i

nclu

ding

sev

eral

agr

icul

tura

l goo

ds (s

ee a

lso M

PPU

May

’18)

. Of

parti

cula

r rel

evan

ce is

Chi

na’s

25 p

erce

nt re

talia

tory

tariff

on

impo

rts o

f US

soyb

eans

, bot

h bl

ack

and

yello

w, w

hich

bro

ught

the

tota

l dut

y ch

arge

d on

suc

h im

ports

to 3

8 pe

rcen

t (N

B: fo

r Chi

na, b

y fa

r the

w

orld

’s la

rges

t soy

bean

buy

er, t

he U

nite

d St

ates

is th

e se

cond

larg

est s

uppl

ier;

on th

e ot

her h

and,

ab

out 6

0 pe

rcen

t of t

he U

nite

d St

ates

’ soy

bean

exp

orts

are

dire

cted

to C

hina

). Be

side

s tri

gger

ing

an

abru

pt s

low

dow

n in

Chi

na’s

soyb

ean

purc

hase

s fro

m th

e U

nite

d St

ates

, the

mea

sure

has

affe

cted

pr

ices

for s

oybe

ans a

nd se

vera

l oth

er c

omm

oditi

es in

a n

umbe

r of c

ount

ries,

giv

ing

rise

to a

succ

essi

on

of a

djus

tmen

ts in

glo

bal t

rade

flow

s. A

dditi

onal

adj

ustm

ents

in o

vera

ll tra

de p

atte

rns

can

be e

xpec

ted

if th

e co

ncer

ned

tariff

bar

riers

rem

ain

in p

lace

. The

trad

e te

nsio

n be

twee

n th

e tw

o co

untri

es c

ould

es

cala

te fu

rther

, con

side

ring

that

the

Uni

ted

Stat

es c

onfir

med

its

inte

ntio

n to

sta

rt co

llect

ing

tariff

s on

an

addi

tiona

l USD

16

billio

n of

Chi

nese

impo

rts a

s of

23

Augu

st –

a m

easu

re C

hina

is e

xpec

ted

to re

cipr

ocat

e. W

hile

gra

ins

and

oils

eeds

do

not f

eatu

re in

the

list o

f com

mod

ities

targ

eted

und

er th

e se

cond

roun

d of

tariff

s, C

hina

’s ca

talo

gue

incl

udes

US

fishm

eal.

Oilcrops complex: Policy changes and industry measures - Annual compendium 2018 27

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n*13

5TR

ADE

POLI

CIE

S –

Tr

ade

disp

utes

Uni

ted

Stat

es,

Chi

naSe

ptem

ber

Sele

cted

oi

lsee

ds, o

ils

and

mea

ls

Afte

r bo

th s

ides

impo

sed

spec

ial t

ariff

s on

eac

h ot

her’s

exp

orts

wor

th U

SD 5

0 bi

llion

in t

he J

uly–

Augu

st p

erio

d (s

ee M

PPU

Aug

.’18)

, on

24 S

epte

mbe

r, fo

llow

ing

fresh

failu

res

in b

ilate

ral t

alks

, the

tw

o co

untri

es in

trodu

ced

addi

tiona

l tar

iffs.

In t

he n

ew r

ound

of t

rade

mea

sure

s, t

he U

nite

d St

ates

in

trodu

ced

impo

rt ta

riffs

of 1

0 pe

rcen

t on

Chi

nese

pro

duct

s w

orth

USD

200

billi

on, a

ddin

g th

at th

e ra

te c

ould

be

rais

ed to

25

perc

ent o

n 1

Janu

ary

2019

. Affe

cted

com

mod

ities

incl

ude

a nu

mbe

r of

oi

lcro

ps a

nd o

ilmea

ls, i

mpo

rts o

f whi

ch, h

owev

er, h

ave

been

neg

ligib

le in

rece

nt y

ears

. At t

he s

ame

time,

Chi

na in

trodu

ced

new

tariff

s on

U.S

. pro

duct

s w

orth

USD

60

billio

n. F

or th

e oi

lcro

ps c

ompl

ex,

Chi

na’s

addi

tiona

l tar

iffs

amou

nt to

10

perc

ent f

or c

erta

in o

ilsee

ds (e

xclu

ding

soy

bean

s, w

hich

had

be

en ta

rget

ed in

the

earli

er ro

und)

, veg

etab

le o

ils/m

eals

and

fish

oil/m

eal,

and

5 pe

rcen

t for

a n

umbe

r of

oth

er o

ilsee

ds, v

eget

able

oils

, and

mea

ls o

f ani

mal

orig

in. A

gain

, in

the

rece

nt p

ast,

Chi

na o

nly

impo

rted

smal

l qua

ntiti

es o

f the

ear

mar

ked

oils

eed

prod

ucts

from

the

Uni

ted

Stat

es.

136

TRAD

E PO

LIC

IES

–

Com

preh

ensiv

e tra

de

agre

emen

ts

Can

ada,

Ja

pan

Dece

mbe

rRa

pese

ed o

il/m

eal

Base

d on

the

rece

nt e

ntry

into

forc

e of

the

Com

preh

ensi

ve a

nd P

rogr

essi

ve T

rans

-Pac

ific

Partn

ersh

ip

(CPT

PP)

agre

emen

t, C

anad

ian

indu

stry

offi

cial

s en

visa

ge n

ew e

xpor

t op

portu

nitie

s fo

r C

anad

ian

rape

seed

oil

and

mea

l in

Japa

n. C

onsi

derin

g th

at, u

nder

CPT

PP, J

apan

’s im

port

tariff

s on

the

nam

ed

prod

ucts

will

be e

limin

ated

ove

r the

nex

t five

yea

rs, t

he C

anol

a C

ounc

il of C

anad

a in

tend

s to

pro

mot

e th

e re

plac

emen

t of r

apes

eed

sale

s to

Jap

an w

ith e

xpor

ts o

f val

ue-a

dded

oil

and

mea

l and

exp

ects

ne

w ra

pese

ed c

rush

faci

litie

s to

be

set u

p in

Can

ada.

Und

er th

e en

visa

ged

scen

ario

, Can

ada

wou

ld

incr

easi

ngly

com

pete

with

Aus

tralia

, w

hich

has

enj

oyed

a f

ree

trade

agr

eem

ent

with

Jap

an s

ince

Ja

nuar

y 20

15.

137

TRAD

E PO

LIC

IES

–

Com

preh

ensiv

e tra

de

agre

emen

ts

Chi

naJu

lySo

ybea

ns,

soym

eal,

rape

seed

, fis

hmea

l

Chi

na a

nnou

nced

the

rem

oval

, as

of 1

Jul

y 20

18, o

f tar

iffs

on a

larg

e nu

mbe

r of p

rodu

cts

– in

clud

ing

soyb

eans

, soy

bean

mea

l, ra

pese

ed a

nd fi

shm

eal –

impo

rted

from

Ban

glad

esh,

Indi

a, th

e La

o Pe

ople

’s De

moc

ratic

Rep

ublic

, the

Rep

ublic

of K

orea

and

Sri

Lank

a. T

he m

easu

re fo

llow

s am

endm

ents

in tr

ade

faci

litat

ion

inst

rum

ents

und

er th

e As

ia-P

acifi

c Tr

ade

Agre

emen

t (AP

TA) t

hat w

ere

plan

ned

sinc

e M

arch

20

18. F

or th

e ab

ove

liste

d co

mm

oditi

es, t

he ta

riffs

appl

ied

prio

r to

the

rem

oval

wer

e th

e M

ost F

avou

red

Nat

ion

(MFN

) rat

es o

f, re

spec

tivel

y, 3

perc

ent,

5 pe

rcen

t, 9

perc

ent a

nd 2

per

cent

. Con

side

ring

that

, in

rece

nt y

ears

, non

e of

the

five

trade

par

tner

s so

ld s

ubst

antia

l am

ount

s of

the

nam

ed c

omm

oditi

es to

C

hina

, the

tariff

rem

oval

is u

nlik

ely

to im

pact

Chi

na’s

trade

, at l

east

in th

e ne

ar te

rm –

eve

n ag

ains

t the

ba

ckdr

op o

f the

on-

goin

g Si

no-U

S tra

de d

ispu

te (s

ee b

elow

) and

its

repe

rcus

sion

s on

Chi

na’s

sour

cing

of

soy

bean

s an

d ot

her f

eeds

tuffs

.

138

TRAD

E PO

LIC

IES

–

Com

preh

ensiv

e tra

de

agre

emen

ts

Indi

a, A

SEAN

, M

alay

sia

Dece

mbe

rPa

lm o

ilIn

line

with

a fr

ee tr

ade

agre

emen

t sig

ned

with

ASE

AN in

200

9, In

dia

has

low

ered

its

tariff

on

palm

oi

l im

ports

from

ASE

AN n

atio

ns, e

ffect

ive

1 Ja

nuar

y 20

19. F

or c

rude

and

refin

ed p

alm

oil,

the

rate

ha

s be

en re

duce

d, re

spec

tivel

y, fro

m 4

4 pe

rcen

t to

40 p

erce

nt a

nd fr

om 5

4 pe

rcen

t to

50 p

erce

nt.

Und

er a

sep

arat

e, b

ilate

ral t

reat

y w

ith M

alay

sia

(Mal

aysi

a In

dia

Com

preh

ensi

ve E

cono

mic

Coo

pera

tion

Agre

emen

t), s

hipm

ents

of r

efine

d M

alay

sian

pal

m o

il w

ill be

taxe

d at

a re

duce

d ra

te o

f 45

perc

ent,

from

1 J

anua

ry 2

019.

As

thes

e re

duct

ions

will

narro

w In

dia’

s du

ty d

iffer

ence

bet

wee

n pa

lm o

il an

d co

mpe

ting

vege

tabl

e oi

ls (s

ee M

PPU

Mar

.’18)

, the

cou

ntry

’s pu

rcha

ses

of p

alm

oil a

re e

xpec

ted

to ri

se

in th

e co

min

g m

onth

s, w

ith M

alay

sian

exp

orte

rs o

f refi

ned

palm

oil

enjo

ying

an

addi

tiona

l adv

anta

ge.

In th

e m

eant

ime,

Indi

an fa

rmer

and

indu

stry

repr

esen

tativ

es h

ave

expr

esse

d co

ncer

n th

at th

e im

port

conc

essi

ons

will

disc

oura

ge d

omes

tic o

ilsee

d pr

oduc

tion,

hal

t the

exp

ansi

on o

f pal

m p

lant

atio

ns a

nd

hurt

loca

l oil

refin

ers.

139

TRAD

E PO

LIC

IES

–

Com

preh

ensiv

e tra

de

agre

emen

ts

Indi

a,

Mal

aysi

aDe

cem

ber

Palm

oil

The

Com

preh

ensi

ve E

cono

mic

Coo

pera

tion

Agre

emen

t si

gned

bet

wee

n th

e tw

o co

untri

es in

201

1 pr

ovid

es f

or a

cut

, fro

m 1

Jan

uary

201

9, in

Indi

a’s

impo

rt du

ties

on M

alay

sian

pal

m o

il. T

he n

ew

pref

eren

tial t

ariff

rate

s fo

r cru

de a

nd re

fined

pal

m o

il w

ill be

, res

pect

ivel

y, 40

per

cent

and

45

perc

ent.

For c

ompa

rison

, Ind

ia’s

curre

nt M

FN ra

tes

for c

rude

and

refin

ed p

alm

oil

stan

d at

44

and

54 p

erce

nt.

28 Oilcrops complex: Policy changes and industry measures - Annual compendium 2018

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n*14

0TR

ADE

POLI

CIE

S –

C

ompr

ehen

sive

trade

ag

reem

ents

Indo

nesi

a,

Paki

stan

Nov

embe

rPa

lm o

ilTh

e tw

o na

tions

are

con

duct

ing

nego

tiatio

ns to

con

vert

an e

xist

ing

pref

eren

tial t

rade

pac

t int

o a

mor

e co

mpr

ehen

sive

free

trad

e ag

reem

ent,

whi

ch c

ould

fost

er In

done

sia’

s pa

lm o

il sh

ipm

ents

to P

akis

tan

and

stre

ngth

en P

akis

tan’

s ro

le a

s a

regi

onal

trad

e an

d in

vest

men

t hub

for p

alm

oil

prod

ucts

.

141

TRAD

E PO

LIC

IES

–

Com

preh

ensiv

e tra

de

agre

emen

ts

Indo

nesi

a,

Switz

erla

ndO

ctob

erPa

lm o

ilTh

e tw

o co

untri

es c

oncl

uded

free

trad

e ne

gotia

tions

as p

art o

f a C

ompr

ehen

sive

Eco

nom

ic P

artn

ersh

ip

Agre

emen

t bet

wee

n In

done

sia

and

EFTA

(the

Eur

opea

n Fr

ee T

rade

Ass

ocia

tion

com

pris

ing

Icel

and,

Li

echt

enst

ein,

Nor

way

and

Sw

itzer

land

). In

done

sia’

s pa

lm o

il sh

ipm

ents

are

exp

ecte

d to

ben

efit f

rom

th

e ag

reem

ent,

subj

ect t

o pr

ovis

ions

rega

rdin

g th

e su

stai

nabi

lity

of p

rodu

ctio

n an

d pr

ovid

ed th

ey d

o no

t har

m S

wis

s oi

lsee

d pr

oduc

tion.

142

TRAD

E PO

LIC

IES

–

Com

preh

ensiv

e tra

de

agre

emen

ts

Repu

blic

of

Kor

ea,

Mer

cosu

r

Mar

chSo

ybea

ns,

mai

zeAf

ter c

onsu

ltatio

ns w

ith th

e Pr

esid

ent o

f Bra

zil, t

he G

over

nmen

t of t

he R

ep. o

f Kor

ea a

nnou

nced

its

inte

ntio

n to

rest

art t

rade

talk

s w

ith th

e M

erco

sur t

rade

blo

c in

the

first

hal

f of 2

018,

focu

sing

, int

er a

lia,

on th

e bl

oc’s

soyb

ean

and

mai

ze e

xpor

ts to

the

Rep.

of K

orea

.

143

TRAD

E PO

LIC

IES

–

Com

preh

ensiv

e tra

de

agre

emen

ts

Turk

ey,

Repu

blic

of

Serb

ia

Janu

ary

Sunfl

ower

seed

s,

sunfl

ower

oil

Und

er a

rece

ntly

sig

ned

free

trade

agr

eem

ent b

etw

een

the

Repu

blic

of S

erbi

a an

d Tu

rkey

, the

form

er

will

enjo

y du

ty fr

ee q

uota

s fo

r exp

orts

of s

unflo

wer

see

d an

d cr

ude/

refin

ed s

unflo

wer

oil

to T

urke

y.

144

TRAD

E PO

LIC

IES

–

Com

preh

ensiv

e tra

de

agre

emen

ts

Uni

ted

Stat

es,

Mex

ico,

C

anad

a

Sept

embe

rAl

l cro

psTh

e th

ree

coun

tries

agr

eed

to re

plac

e N

AFTA

, the

free

trad

e ag

reem

ent s

igne

d in

199

4, w

ith th

e U

nite

d St

ates

-Mex

ico-

Can

ada

Agre

emen

t. Th

e ne

w tr

ade

acco

rd w

ill no

t affe

ct m

arke

t acc

ess

for o

ilcro

ps a

s al

l pre

viou

s tra

de fa

cilit

atio

n pr

ovis

ions

are

exp

ecte

d to

rem

ain

in p

lace

with

out m

odifi

catio

n. T

he n

ew

agre

emen

t is

pois

ed to

exp

ire a

fter 1

6 ye

ars.

145

TRAD

E PO

LIC

IES

–

Com

preh

ensiv

e tra

de

agre

emen

ts

Viet

Nam

Janu

ary

Oils

eeds

, oi

lsee

d pr

oduc

tsIn

line

with

pro

visi

ons

of a

num

ber

of r

egio

nal a

nd b

ilate

ral f

ree

trade

agr

eem

ents

con

cern

ing

the

coun

try, t

he G

over

nmen

t of V

iet N

am lo

wer

ed o

r elim

inat

ed th

e na

tion’

s im

port

tariff

s on

oils

eed

and

oils

eed

prod

ucts

sta

rting

in J

anua

ry 2

018.

Cou

ntrie

s or

cou

ntry

gro

ups

bene

fittin

g fro

m t

he t

ariff

adju

stm

ents

incl

ude:

ASE

AN, A

ustra

lia, C

hile

, Chi

na, E

AEU

, Ind

ia, J

apan

, the

Rep

. of K

orea

and

New

Ze

alan

d.

146

TRAD

E PO

LIC

IES

– Se

ctor

-spe

cific

bila

tera

l in

itiat

ives

Chi

na,

Kaza

khst

anM

ayRa

pese

ed,

rape

seed

mea

lAc

cord

ing

to m

edia

rep

orts

, th

e tw

o co

untri

es a

gree

d to

rel

ax s

anita

ry r

equi

rem

ents

rel

ated

to

agric

ultu

ral p

rodu

ct tr

ade

– a

deve

lopm

ent t

hat c

ould

boo

st K

azak

hsta

n’s

ship

men

ts o

f rap

esee

d an

d ra

pese

ed m

eal t

o C

hina

. (Se

e al

so M

PPU

Jan

. & A

pr.’1

7).

147

TRAD

E PO

LIC

IES

– Se

ctor

-spe

cific

bila

tera

l in

itiat

ives

Chi

na,

Mal

aysi

aSe

ptem

ber

Palm

oil

A re

cent

ly s

igne

d m

emor

andu

m b

etw

een

Chi

na’s

stat

e-ow

ned

grai

n tra

ding

gro

up C

OFC

O a

nd a

go

vern

men

t-ow

ned

Mal

aysi

an p

alm

oil

corp

orat

ion

aim

s at

the

prom

otio

n of

pal

m o

il re

late

d ve

ntur

es

and

incr

ease

d tra

de b

etw

een

the

two

coun

tries

. Acc

ordi

ng to

med

ia re

ports

, the

agr

eem

ent r

each

ed

envi

sage

s i) jo

int p

roje

cts o

n th

e hea

lth b

enefi

ts o

f pal

m o

il pro

duct

s, ii)

inve

stm

ents

in th

e man

ufac

turin

g of

spe

cial

ty o

ils/fa

ts, a

nd iii

) col

labo

rativ

e eff

orts

to d

evel

op th

e m

arke

t for

hig

h-va

lue

palm

oil p

rodu

cts

in C

hina

. (Se

e al

so M

PPU

Oct

.’18)

148

TRAD

E PO

LIC

IES

– Se

ctor

-spe

cific

bila

tera

l in

itiat

ives

Chi

na,

Russ

ian

Fede

ratio

n,

Braz

il

Oct

ober

Oilc

rops

Trad

e m

itiga

tion:

Gov

ernm

ent a

nd in

dust

ry o

ffici

als

from

Chi

na a

nd th

e Ru

ssia

n Fe

dera

tion

disc

usse

d ab

out p

ossi

bilit

ies

to d

evel

op o

ilcro

p pr

oduc

tion

in th

e Fe

dera

tion’

s fa

r-eas

tern

dis

trict

s fo

r eve

ntua

l ex

porta

tion

to C

hina

. O

n th

e sa

me

subj

ect,

Chi

na’s

stat

e-ow

ned

grai

n tra

ding

gro

up C

OFC

O i

s co

ntin

uing

to e

xpan

d its

pre

senc

e in

Bra

zil’s

Cen

tre-w

est g

rain

bel

t. Th

e co

mpa

ny’s

over

all a

nnua

l pu

rcha

ses

and

expo

rts o

f mai

ze a

nd s

oybe

an in

Bra

zil a

re e

stim

ated

to h

ave

reac

hed

13 m

illion

tonn

es.

Both

mov

es h

ave

been

link

ed to

Chi

nese

effo

rts to

miti

gate

the

impa

ct o

f Chi

na’s

reta

liato

ry ta

x on

U

.S. s

oybe

ans

on d

omes

tic m

arke

ts, w

hile

redu

cing

the

coun

try’s

relia

nce

on im

porte

d so

ybea

ns fo

r fe

ed.

Oilcrops complex: Policy changes and industry measures - Annual compendium 2018 29

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n*14

9TR

ADE

POLI

CIE

S –

Sect

or-s

peci

fic b

ilate

ral

initi

ative

s

Mal

aysi

a,

Switz

erla

ndSe

ptem

ber

Palm

oil,

ra

pese

edO

ffici

al s

ourc

es r

epor

ted

that

Mal

aysi

a an

d Sw

itzer

land

agr

eed

to c

oope

rate

on

issu

e re

latin

g to

pa

lm o

il. T

he tw

o co

untri

es d

ecid

ed to

set

up

an e

xper

t com

mitt

ee to

exp

lore

opp

ortu

nitie

s to

war

ds

sust

aina

ble

prod

uctio

n, b

ilate

ral t

rade

, ex

chan

ge o

f in

form

atio

n ab

out

rele

vant

tec

hnol

ogie

s, a

nd

poss

ible

col

labo

ratio

n in

dow

nstre

am p

alm

oil i

ndus

try a

pplic

atio

ns. C

ontri

butin

g to

add

ress

the

issu

e of

incr

easi

ngly

neg

ativ

e co

nsum

er p

erce

ptio

n, th

e bi

late

ral i

nitia

tive

is a

imed

at s

ecur

ing

Mal

aysi

a’s

palm

oil

expo

rts t

o Sw

itzer

land

– w

ithou

t ha

rmin

g Sw

itzer

land

’s ra

pese

ed p

rodu

cers

. Sw

itzer

land

m

aint

ains

its

targ

et o

f cov

erin

g ab

out o

ne th

ird o

f dom

estic

veg

etab

le o

il con

sum

ptio

n th

roug

h lo

cally

pr

oduc

ed ra

pese

ed.

150

MAR

KET

REG

ULA

TIO

NC

hina

Febr

uary

Rape

seed

oil

The

last

roun

d of

rape

seed

oil

sale

s fro

m s

tate

rese

rves

com

pris

ed o

nly

four

auc

tions

, hel

d be

twee

n m

id-J

anua

ry a

nd e

arly

Feb

ruar

y 20

18. I

n to

tal,

som

e 15

4 th

ousa

nd to

nnes

of r

apes

eed

oil h

ave

been

off

ered

, virt

ually

all

of w

hich

foun

d a

buye

r. Av

erag

e au

ctio

n pr

ices

rang

ed fr

om C

NY

6 00

0 to

CN

Y 6

343

per t

onne

(res

pect

ivel

y, U

SD 9

47 a

nd 1

001

). Du

ring

the

two

prec

edin

g ca

mpa

igns

, sal

es fr

om

gove

rnm

ent r

eser

ves

wer

e co

nsid

erab

ly h

ighe

r, am

ount

ing

to, r

espe

ctiv

ely,

2.3

and

2 m

illion

tonn

es.

The

shar

p dr

op in

dis

posa

ls p

oint

s to

a c

ontra

ctio

n in

pub

lic s

tock

s, w

hich

wou

ld g

o ha

nd in

han

d w

ith th

e go

vern

men

t’s d

ecis

ion

to te

rmin

ate

natio

nwid

e ra

pese

ed p

rocu

rem

ent a

nd s

tock

pilin

g (s

ee

MPP

U J

uly’

15).

151

MAR

KET

REG

ULA

TIO

NC

hina

June

Soyb

ean,

soy

oil,

rape

seed

oil

This

yea

r, pu

blic

sal

es fr

om s

tate

-hol

d in

vent

orie

s of

soy

bean

and

soy

bean

oil s

tarte

d in

Jun

e, w

here

as

thos

e of

rap

esee

d oi

l res

umed

– a

fter

a fir

st r

ound

in J

anua

ry a

nd e

arly

Feb

ruar

y –

in J

uly.

As fo

r so

ybea

ns a

nd s

oybe

an o

il, u

p to

end

-Jul

y, to

tal v

olum

es o

ffere

d am

ount

ed to

, res

pect

ivel

y, 3.

1 an

d 0.

3 m

illion

tonn

es, o

f whi

ch 3

3 pe

rcen

t and

19

perc

ent,

resp

ectiv

ely,

have

foun

d a

buye

r. Th

e av

erag

e pr

ice

achi

eved

for s

oybe

ans

was

CN

Y 3

008

(USD

437

) per

tonn

e, a

nd C

NY

5 00

1 (U

SD 7

27) p

er to

nne

for s

oybe

an o

il. R

egar

ding

rape

seed

oil,

in th

e fir

st ro

und,

tota

l offe

rs, t

he a

ctua

l pur

chas

e ra

te a

nd

the

aver

age

pric

e ac

hiev

ed a

mou

nted

to, r

espe

ctiv

ely,

212

000

tonn

es, 9

8 pe

rcen

t, an

d C

NY

6 21

1 (U

SD 9

02) p

er to

nne,

whe

reas

the

corre

spon

ding

figu

res

for t

he m

onth

of J

uly

wer

e 12

2 00

0 to

nnes

, 47

per

cent

and

CN

Y 6

039

(USD

877

).

152

MAR

KET

REG

ULA

TIO

NC

hina

Sept

embe

rSo

ybea

ns,

soyo

il, ra

pese

ed

oil

By e

nd-S

epte

mbe

r, th

is y

ear’s

cum

ulat

ive

sale

s of

soy

bean

s fro

m s

tate

-hol

d in

vent

orie

s st

ood

at

1.64

milli

on to

nnes

, whi

ch c

ompa

res

to a

tota

l offe

r of 5

.26

milli

on to

nnes

. The

ave

rage

sal

es p

rices

re

alize

d w

as C

NY

3 01

7 (U

SD 4

35) p

er to

nne.

For

soy

bean

oil

and

rape

seed

oil,

the

tota

l vol

umes

off

ered

am

ount

ed t

o, r

espe

ctiv

ely,

0.62

and

0.4

8 m

illion

ton

nes,

of w

hich

, res

pect

ivel

y, 21

per

cent

an

d 17

per

cent

foun

d a

buye

r. Th

e av

erag

e pe

r-ton

ne p

rices

ach

ieve

d w

ere

CN

Y 5

000

(USD

720

) for

so

ybea

n oi

l and

CN

Y 6

029

(USD

869

) for

rape

seed

oil.

153

MAR

KET

REG

ULA

TIO

NC

hina

Oct

ober

Prot

ein

feed

Trad

e m

itiga

tion:

The

cen

tral G

over

nmen

t bac

ked

new

vol

unta

ry s

tand

ards

app

rove

d by

the

coun

try’s

Feed

Indu

stry

Ass

ocia

tion

to p

rom

ote

a sh

ift to

war

ds h

igh-

effici

ency

low

-pro

tein

ani

mal

die

ts. U

nder

th

e re

vise

d no

rms,

the

reco

mm

ende

d m

inim

um p

rote

in in

clus

ion

rate

in fe

ed fo

rmul

atio

ns h

as b

een

low

ered

by

1.5

perc

enta

ge p

oint

s fo

r pi

g fe

ed a

nd 1

per

cent

age

poin

t fo

r po

ultry

feed

. Acc

ordi

ng

to g

over

nmen

t offi

cial

s, th

e ne

w g

uide

lines

cou

ld lo

wer

Chi

na’s

annu

al s

oybe

an re

quire

men

t by

up

to 1

4 m

illion

tonn

es, w

hich

wou

ld c

orre

spon

d to

a 1

5 pe

rcen

t fal

l fro

m c

urre

nt c

onsu

mpt

ion

leve

ls.

The

mov

e is

par

t of a

set

of m

easu

res

mea

nt to

miti

gate

the

impa

ct o

f Chi

na’s

reta

liato

ry ta

x on

U.S

. so

ybea

ns o

n do

mes

tic m

arke

ts, w

hile

redu

cing

the

coun

try’s

relia

nce

on im

porte

d so

ybea

ns fo

r fee

d.

154

MAR

KET

REG

ULA

TIO

NC

hina

Dece

mbe

rSo

ybea

nsTr

ade

miti

gatio

n: D

urin

g 20

18, c

umul

ativ

e off

ers

of s

oybe

ans

from

gov

ernm

ent r

eser

ves

have

bee

n ra

ised

to 5

.66

milli

on to

nnes

(as

oppo

sed

to 0

.55

milli

on to

nnes

last

yea

r), w

ith a

ctua

l sal

es to

tallin

g 2.

01 m

illion

tonn

es (c

ompa

red

to 0

.22

milli

on to

nnes

in 2

017)

. The

mov

e is

par

t of a

set

of m

easu

res

mea

nt to

miti

gate

the

impa

ct o

f Chi

na’s

reta

liato

ry ta

x on

U.S

. soy

bean

s on

dom

estic

mar

kets

, whi

le

redu

cing

the

coun

try’s

relia

nce

on im

porte

d so

ybea

ns fo

r fee

d.

30 Oilcrops complex: Policy changes and industry measures - Annual compendium 2018

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n*15

5M

ARKE

T RE

GU

LATI

ON

Sene

gal

Mar

chG

roun

dnut

The

Gov

ernm

ent o

f Sen

egal

sig

ned

a m

emor

andu

m o

f und

erst

andi

ng w

ith in

dust

ry s

take

hold

ers

to

regu

late

the

mar

ketin

g of

raw

and

refin

ed g

roun

dnut

oil

in th

e co

untry

. The

agr

eem

ent d

efine

s sa

le

and

purc

hase

obl

igat

ions

of a

rtisa

nal p

roce

ssor

s an

d in

dust

rial r

efine

rs, w

hile

the

Gov

ernm

ent

will

be in

cha

rge

of o

pera

ting

safe

ty re

serv

es a

nd re

gula

ting

impo

rts. T

he in

itiat

ive

is a

imed

at i

mpr

ovin

g do

mes

tic m

arke

t tra

nspa

renc

y an

d effi

cien

cy w

hile

impr

ovin

g co

nsum

er a

cces

s to

edi

ble

grou

ndnu

t oi

l.

156

MAR

KET

REG

ULA

TIO

NSr

i Lan

kaFe

brua

ryC

ocon

utC

onfro

nted

with

per

sist

ently

hig

h m

arke

t pric

es fo

r co

conu

t, th

e G

over

nmen

t con

firm

ed it

s pl

an to

te

mpo

raril

y pe

rmit

the

impo

rtatio

n of

fres

h un

husk

ed c

ocon

ut (s

ee a

lso M

PPU

Jun

e’17

). Re

porte

dly,

the

coun

ty’s

quar

antin

e la

w h

as a

lread

y be

en re

vise

d to

ena

ble

trade

rs to

impo

rt co

conu

t ker

nels

. In

Sri L

anka

, con

sum

er p

rices

sur

ged

as d

omes

tic c

ocon

ut o

utpu

t tum

bled

on

the

back

of p

rolo

nged

dr

ough

t an

d pe

st a

ttack

s. T

he r

elea

se o

f pu

blic

ly h

eld

coco

nut

stoc

ks (s

ee M

PPU

Oct

.’17)

bar

ely

calm

ed th

e m

arke

t. As

for t

he g

over

nmen

t-im

pose

d pr

ice

of L

KR 7

5 pe

r nut

(USD

0.4

8), t

he re

spon

sibl

e st

ate

agen

cy in

form

ed th

at le

gal a

ctio

n ha

s be

en ta

ken

agai

nst t

rade

rs w

ho s

old

nuts

for m

ore

than

the

cont

rolle

d pr

ice.

Mea

nwhi

le, t

he c

ount

ry’s

coco

nut g

row

ers

asso

ciat

ion

voic

ed it

s op

posi

tion

to a

ny

type

of c

ocon

ut im

porta

tion,

sta

ting

that

fore

ign

purc

hase

s w

ould

dam

age

the

loca

l ind

ustry

and

its

repu

tatio

n fo

r hig

h-qu

ality

coc

onut

pro

duct

s.

157

FOO

D ST

ANDA

RDS

& FO

OD

SAFE

TY/H

EALT

H

POLI

CIE

S

Can

ada

Febr

uary

Satu

rate

d fa

tTh

e C

anad

ian

Gov

ernm

ent i

nvite

d pu

blic

com

men

ts o

n pr

opos

ed fr

ont-o

f-pac

kage

labe

ling

regu

latio

ns

that

wou

ld b

e ai

med

at a

ddre

ssin

g th

e in

crea

sing

pre

vale

nce

of n

utrit

ion-

rela

ted

chro

nic

dise

ases

in

the

coun

try. U

nder

the

prop

osed

rule

s, c

onsu

mer

s w

ould

be

prov

ided

with

rele

vant

info

rmat

ion

as to

w

heth

er a

food

exc

eeds

cer

tain

thre

shol

ds in

any

of t

he th

ree

nutri

ents

of c

once

rn –

sat

urat

ed fa

t, so

dium

and

sug

ar. T

he in

dust

ry w

ould

hav

e un

til D

ecem

ber 2

022

to c

ompl

y w

ith th

e ne

w la

bellin

g re

gula

tions

.

158

FOO

D ST

ANDA

RDS

& FO

OD

SAFE

TY/H

EALT

H

POLI

CIE

S

Chi

naM

arch

Gro

undn

ut,

cotto

nsee

dC

hina

invi

ted

com

men

ts o

n its

dra

ft C

ode

of P

ract

ice

for t

he P

reve

ntio

n an

d Re

duct

ion

of A

flato

xin

Con

tam

inat

ion

in F

ood.

The

pro

pose

d re

gula

tion

appl

ies,

inte

r alia

, to

grou

ndnu

ts a

nd c

otto

nsee

d.

159

FOO

D ST

ANDA

RDS

& FO

OD

SAFE

TY/H

EALT

H

POLI

CIE

S

Chi

naAp

rilO

live

oil

A ne

w fr

aud

case

con

cern

ing

oliv

e oi

l has

bee

n re

porte

d fro

m C

hina

. Acc

ordi

ng to

med

ia s

ourc

es,

a pr

ovin

cial

foo

d sa

fety

offi

ce u

ncov

ered

a f

raud

sch

eme

in w

hich

coo

king

oil

com

pani

es m

isle

d co

nsum

ers

by d

elib

erat

ely

over

stat

ing

the

perc

enta

ge o

f oliv

e oi

l con

tain

ed in

bot

tled

oil b

lend

s. In

ge

nera

l, oliv

e oi

l is va

lued

by c

onsu

mer

s for

its h

ealth

pro

perti

es a

nd fe

tche

s sig

nific

ant p

rice

prem

ium

s ov

er o

ther

edi

ble

oils

. Chi

na’s

impo

rts o

f oliv

e oi

l hav

e ris

en c

onst

antly

in re

cent

yea

rs.

160

FOO

D ST

ANDA

RDS

& FO

OD

SAFE

TY/H

EALT

H

POLI

CIE

S

Eura

sian

Ec

onom

ic

Uni

on

Janu

ary

Tran

s fa

tAs

of 1

Jan

uary

201

8, in

the

Russ

ian

Fede

ratio

n an

d th

e re

mai

nder

of t

he E

uras

ian

Econ

omic

Uni

on,

the

max

imum

per

mitt

ed p

erce

ntag

e of

tran

s fa

ts in

food

pro

duct

has

bee

n se

t at 2

per

cent

of t

otal

fa

t co

nten

t. Lo

wer

ed g

radu

ally

from

20

perc

ent

in 2

013,

the

new

thr

esho

ld a

pplie

s to

mar

garin

es,

fat-v

eget

able

spr

eads

and

ren

dere

d m

ixtu

res,

milk

fat

sub

stitu

tes,

cac

ao b

utte

r an

d ca

cao

butte

r eq

uiva

lent

s. T

rans

fat l

evel

s as

a p

erce

nt o

f tot

al fa

t mus

t be

indi

cate

d on

pro

duct

labe

ls.

161

FOO

D ST

ANDA

RDS

& FO

OD

SAFE

TY/H

EALT

H

POLI

CIE

S

Euro

pean

U

nion

Mar

chO

live

oil

The

Euro

pean

Com

mis

sion

invi

ted

publ

ic c

omm

ents

on

two

prop

osed

am

endm

ents

to

the

bloc

’s la

bellin

g re

gula

tions

for

oliv

e oi

l. O

ne c

once

rns

info

rmat

ion

on c

erta

in p

hysi

oche

mic

al p

aram

eter

s w

hen

acid

ity le

vels

are

men

tione

d on

labe

ls a

nd t

he o

ther

det

erm

ines

und

er w

hich

con

ditio

ns t

he

harv

est y

ear s

houl

d be

sho

wn

on p

rodu

ct la

bels

.

Oilcrops complex: Policy changes and industry measures - Annual compendium 2018 31

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n*16

2FO

OD

STAN

DARD

S &

FOO

D SA

FETY

/HEA

LTH

PO

LIC

IES

Euro

pean

U

nion

Oct

ober

Tran

s fa

tTh

e Eu

rope

an C

omm

issi

on p

ropo

sed

setti

ng a

n EU

-wid

e m

axim

um li

mit

of 2

per

cent

for t

rans

fats

(o

ther

tha

n tra

ns fa

t na

tura

lly o

ccur

ring

in a

nim

al fa

t) in

food

pro

duct

s. U

nder

the

dra

ft re

gula

tion,

fo

od o

pera

tors

wou

ld h

ave

until

1 A

pril 2

021

to e

nsur

e co

mpl

ianc

e w

ith th

e ne

w re

quire

men

t. In

dust

ry

stak

ehol

ders

hav

e be

en g

iven

4 w

eeks

to

subm

it co

mm

ents

on

the

prop

osal

. In

rece

nt y

ears

, the

pr

esen

ce o

f hyd

roge

nate

d ve

geta

ble

oils

– th

e pr

imar

y di

etar

y so

urce

of i

ndus

trial

tran

s fa

ts –

has

bee

n re

gula

ted

in s

ever

al c

ount

ries,

incl

udin

g a

num

ber o

f EU

mem

ber s

tate

s (s

ee a

lso M

PPU

Feb

.’16,

Oct

./De

c.’1

7 &

May

/Aug

.’18)

. Acc

ordi

ng to

an

EU c

onsu

mer

org

aniza

tion,

whi

le a

vera

ge le

vels

of i

ndus

trial

tra

ns fa

t in

food

s de

crea

sed

in g

ener

al, c

onte

nt o

f the

unh

ealth

y fa

tty a

cid

can

rem

ain

high

in s

peci

fic

prod

ucts

in s

ome

coun

tries

. The

gro

up re

gret

ted

the

envi

sage

d lo

ng tr

ansi

tion

perio

d.

163

FOO

D ST

ANDA

RDS

& FO

OD

SAFE

TY/H

EALT

H

POLI

CIE

S

Indi

aFe

brua

ryEd

ible

oils

In In

dia,

the

Gov

ernm

ent o

f Ker

ala

Stat

e ba

nned

28

bran

ds o

f edi

ble

oil b

ased

on

prob

es s

how

ing

that

coc

onut

oil

bottl

ed in

Tam

il N

adu

had

been

adu

ltera

ted

with

oth

er, u

nspe

cifie

d ve

geta

ble

oils

. Ad

ulte

ratio

n of

coc

onut

oil

with

che

aper

pro

duce

is w

idel

y pr

actic

ed in

tim

es o

f sca

rce

coco

nut o

il su

pplie

s (s

ee a

lso M

PPU

Jun

e &

July’

16).

To a

ddre

ss th

e pr

oble

m, K

eral

a’s

auth

oriti

es p

lan

to a

naly

ze

edib

le o

ils s

yste

mat

ical

ly. F

unds

hav

e be

en e

arm

arke

d fo

r se

tting

up

loca

l lab

orat

orie

s, in

clud

ing

mob

ile f

ood

test

ing

units

. O

n a

rela

ted

note

, a

coco

nut

oil m

anuf

actu

rer

in K

eral

a ha

s la

unch

ed

offici

ally

cer

tified

coc

onut

oil b

lend

s, a

llege

dly

guar

ante

eing

bot

h pr

oduc

t saf

ety

and

affor

dabl

e pr

ices

. Re

porte

dly,

the

blen

ds c

onta

inin

g ei

ther

sun

flow

er o

il or

pal

m o

lein

are

sol

d at

, res

pect

ivel

y, IN

R 12

6 an

d IN

R 10

5 pe

r lite

r (U

SD 1

.94

and

1.61

), w

hich

com

pare

s to

pric

es o

f ove

r IN

R 20

0 (U

SD 3

.07)

for

unm

ixed

coc

onut

oil.

164

FOO

D ST

ANDA

RDS

& FO

OD

SAFE

TY/H

EALT

H

POLI

CIE

S

Indi

aM

arch

Oils

& fa

ts

labe

lling

New

labe

lling

and

disp

lay

regu

latio

ns fo

r pre

-pac

kage

d fo

ods

prop

osed

by

Indi

a’s

Food

Sta

ndar

d an

d Sa

fety

Aut

horit

y (F

SSAI

) env

isag

e m

anda

tory

fron

t-of-p

acka

ge d

ecla

ratio

n of

nut

ritio

nal d

ata.

Lab

els

will

have

to in

clud

e in

form

atio

n on

the

amou

nt o

f tot

al fa

t and

tran

s fa

ts a

s w

ell a

s on

per

-ser

ving

pe

rcen

tage

con

tribu

tions

to

reco

mm

ende

d di

etar

y al

low

ance

s, i

nclu

ding

spe

cial

men

tion

whe

n sp

ecifi

c th

resh

olds

are

exc

eede

d. F

SSAI

als

o op

ened

for c

omm

ent p

ropo

sals

to: i

) rev

ise

the

exis

ting

stan

dard

s fo

r mus

tard

/rape

seed

oil,

pal

m o

il and

hyd

roge

nate

d co

okin

g oi

l; ii)

incl

ude

pero

xide

val

ues

in th

e st

anda

rd o

f all

vege

tabl

e oi

ls; a

nd ii

i) is

sue

new

sta

ndar

ds fo

r the

var

ious

frac

tions

of p

alm

oil.

Th

e va

rious

pro

posa

ls a

re a

imed

at

impr

ovin

g co

nsum

er in

form

atio

n an

d al

low

ing

to a

scer

tain

oil

auth

entic

ity, i

n ad

ditio

n to

add

ress

ing

indu

stry

nee

ds.

165

FOO

D ST

ANDA

RDS

& FO

OD

SAFE

TY/H

EALT

H

POLI

CIE

S

Indi

aJu

neC

ocon

ut o

ilO

n 2

June

, the

food

saf

ety

auth

oriti

es o

f Ker

ala

Stat

e ba

nned

the

man

ufac

ture

, sto

rage

, sal

e an

d di

strib

utio

n of

45

bran

ds o

f coc

onut

oil

with

imm

edia

te e

ffect

, acc

ordi

ng to

loca

l pre

ss re

ports

. The

de

cisi

on w

as ta

ken

afte

r sam

ples

wer

e fo

und

adul

tera

ted

and

unsa

fe fo

r hum

an c

onsu

mpt

ion

(see

also

M

PPU

Mar

.’18)

.

166

FOO

D ST

ANDA

RDS

& FO

OD

SAFE

TY/H

EALT

H

POLI

CIE

S

Indi

aJu

lyEd

ible

oil

labe

lling

Acco

rdin

g to

med

ia re

ports

, the

cou

ntry

’s Fo

od S

afet

y an

d St

anda

rds

Auth

ority

(FSS

AI) p

ropo

sed

to

mak

e it

man

dato

ry fo

r man

ufac

ture

rs o

f ble

nded

oils

to d

iscl

ose

the

exac

t ble

nd in

per

cent

age

term

s on

pro

duct

labe

ls a

nd to

add

the

follo

win

g m

entio

n: ‘B

lend

ed E

dibl

e Ve

geta

ble

Oil’

and

‘Not

to b

e so

ld

loos

e’. T

he m

easu

re is

aim

ed a

t ena

blin

g co

nsum

ers

to m

ake

info

rmed

cho

ices

. FSS

AI a

lso

issu

ed

new

nor

ms,

effe

ctiv

e 1

July,

for f

ood

busi

ness

ope

rato

rs to

mon

itor t

he q

ualit

y of

edi

ble

oils

dur

ing

fryin

g.

167

FOO

D ST

ANDA

RDS

& FO

OD

SAFE

TY/H

EALT

H

POLI

CIE

S

Indi

aN

ovem

ber

Edib

le o

ilsIn

dia’

s Fo

od a

nd D

rug

Adm

inis

tratio

n or

dere

d th

e cl

osur

e of

an

edib

le o

il br

andi

ng a

nd re

pack

agin

g fa

cilit

y af

ter d

etec

ting

sale

s of

adu

ltera

ted

oil.

Repo

rtedl

y, th

e co

ncer

ned

oper

ator

ble

nded

rela

tivel

y ex

pens

ive

mus

tard

oil

with

che

aper

edi

ble

oils

and

faile

d to

test

his

pro

duct

s pe

riodi

cally

bef

ore

sale

.

168

FOO

D ST

ANDA

RDS

& FO

OD

SAFE

TY/H

EALT

H

POLI

CIE

S

Indi

aDe

cem

ber

Coc

onut

oil

New

cas

es o

f coc

onut

oil a

dulte

ratio

n ha

ve b

een

dete

cted

in th

e st

ate

of K

eral

a. A

fter b

anni

ng c

lose

to

100

bran

ds b

etw

een

May

and

Jun

e 20

18, i

n De

cem

ber,

loca

l foo

d au

thor

ities

ban

ned

the

man

ufac

ture

, st

orag

e, d

istri

butio

n an

d sa

le o

f ano

ther

74

bran

ds.

32 Oilcrops complex: Policy changes and industry measures - Annual compendium 2018

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n*16

9FO

OD

STAN

DARD

S &

FOO

D SA

FETY

/HEA

LTH

PO

LIC

IES

Mor

occo

Dece

mbe

rO

live

oil

Acco

rdin

g to

med

ia re

ports

, the

cou

ntry

’s In

terio

r Min

istry

has

inte

nsifi

ed it

s eff

orts

to c

omba

t sal

es o

f ad

ulte

rate

d ol

ive

oil.

Repo

rtedl

y, sa

les

of u

nreg

ulat

ed p

rodu

cts

cont

aini

ng b

lend

s of

diff

eren

t veg

etab

le

oils

as

wel

l as

toxi

c su

bsta

nces

hav

e be

en d

etec

ted

in s

ever

al p

arts

of t

he c

ount

ry.

170

FOO

D ST

ANDA

RDS

& FO

OD

SAFE

TY/H

EALT

H

POLI

CIE

S

Thai

land

July

Tran

s fa

tTh

aila

nd’s

ban

on th

e pr

oduc

tion,

impo

rtatio

n an

d sa

le o

f par

tially

hyd

roge

nate

d oi

ls (P

HO

s) a

nd fo

ods

cont

aini

ng th

e sa

me

has

com

e in

to fo

rce

on 1

3 Ju

ly 2

018

(see

also

MPP

U J

an.’1

7). G

ener

ated

whe

n pl

ant o

ils a

re p

roce

ssed

to in

crea

se th

eir s

tabi

lity

and

func

tiona

lity,

PHO

s re

pres

ent t

he p

rimar

y di

etar

y so

urce

of a

rtific

ial t

rans

fat i

n pr

oces

sed

food

s. T

he b

an b

uild

s on

evi

denc

e of

tran

s fa

t int

ake

rais

ing

the

risk

of c

oron

ary

hear

t dis

ease

s. T

o al

low

for a

n or

derly

tran

sitio

n in

the

mar

ketp

lace

the

indu

stry

ha

s be

en g

rant

ed a

180

-day

gra

ce p

erio

d, w

hich

shi

fts a

ctua

l enf

orce

men

t to

9 Ja

nuar

y 20

19.

171

FOO

D ST

ANDA

RDS

& FO

OD

SAFE

TY/H

EALT

H

POLI

CIE

S

Uni

ted

Stat

esM

ayTr

ans

fat

In li

ne w

ith le

gisl

atio

n pa

ssed

in 2

015,

as

of 1

8 Ju

ne 2

018,

food

pro

duct

s m

anuf

actu

red

in th

e U

nite

d St

ates

are

no

long

er a

llow

ed t

o co

ntai

n pa

rtial

ly h

ydro

gena

ted

oils

, or

PHO

s (s

ee M

PPU

Jul

y’15

). G

ener

ated

whe

n pl

ant o

ils a

re p

roce

ssed

to in

crea

se th

eir s

tabi

lity

and

func

tiona

lity,

PHO

s re

pres

ent

the

prim

ary

diet

ary

sour

ce o

f ar

tifici

al h

arm

ful t

rans

fat

in p

roce

ssed

foo

ds.

For

certa

in s

peci

fied

appl

icat

ions

of P

HO

s, th

e U

.S. F

ood

and

Drug

Adm

inis

tratio

n (F

DA) d

ecid

ed to

ext

end

the

com

plia

nce

date

to

1 Ju

ne 2

019.

Mor

e im

porta

ntly,

to

allo

w f

or a

n or

derly

tra

nsiti

on in

the

mar

ketp

lace

, FDA

al

so a

llow

ed m

ore

time

for a

ll pr

oduc

ts p

rodu

ced

prio

r to

18 J

une

2018

to w

ork

thei

r way

thro

ugh

dist

ribut

ion.

For

thes

e fo

ods

the

com

plia

nce

date

has

bee

n ex

tend

ed to

1 J

anua

ry 2

020.

172

FOO

D ST

ANDA

RDS

& FO

OD

SAFE

TY/H

EALT

H

POLI

CIE

S

Uni

ted

Stat

esN

ovem

ber

Edib

le o

ilsAc

cord

ing

to th

e U

.S. F

ood

and

Drug

Adm

inis

tratio

n, c

redi

ble

evid

ence

sup

ports

a q

ualifi

ed h

ealth

cl

aim

that

con

sum

ing

edib

le o

ils ri

ch in

ole

ic a

cid

– suc

h as

oliv

e oi

l and

hig

h-ol

eic

varia

nts o

f sun

flow

er,

rape

seed

, saffl

ower

, soy

bean

and

alg

al o

il –

may

redu

ce th

e ris

k of

cor

onar

y he

art d

isea

se.

173

FOO

D ST

ANDA

RDS

& FO

OD

SAFE

TY/H

EALT

H

POLI

CIE

S

Wor

ld H

ealth

O

rgan

izatio

n m

embe

r co

untri

es

May

Satu

rate

d fa

tty

acid

, tra

ns fa

tTh

e W

orld

Hea

lth O

rgan

izatio

n (W

HO

) iss

ued

a ca

ll fo

r pub

lic c

omm

ents

on

draf

t gui

delin

es a

bout

the

inta

ke o

f sat

urat

ed fa

tty a

cids

and

tran

s-fa

tty a

cids

, with

the

aim

to re

duce

the

risk

of c

ardi

ovas

cula

r di

seas

es in

adu

lts a

nd c

hild

ren.

Fur

ther

mor

e, th

e or

gani

zatio

n re

leas

ed a

ste

p-by

-ste

p gu

ide

for t

he

elim

inat

ion

of h

arm

ful i

ndus

trial

ly-p

rodu

ced

trans

-fatty

aci

ds fr

om th

e fo

od s

uppl

y ch

ain.

The

gui

de

reco

mm

ends

six

stra

tegi

c ac

tions

, nam

ely:

revi

ewin

g di

etar

y so

urce

s of

tran

s fa

ts a

nd th

e la

ndsc

ape

for

requ

ired

polic

y ch

ange

; pr

omot

ing

the

repl

acem

ent

of t

rans

fat

s w

ith h

ealth

ier

fats

and

oils

; le

gisl

atin

g re

gula

tory

act

ions

to e

limin

ate

trans

fats

; ass

essi

ng tr

ans

fat c

onte

nt in

the

food

sup

ply

chai

n an

d m

onito

ring

chan

ges

in tr

ans

fat u

ptak

e; c

reat

ing

awar

enes

s of

the

nega

tive

heal

th im

pact

of

trans

fats

; and

enf

orci

ng c

ompl

ianc

e of

pol

icie

s an

d re

gula

tions

. The

WH

O’s

targ

et is

to e

limin

ate

the

harm

ful c

ompo

und

wor

ldw

ide

by 2

023.

174

SEED

& G

MO

PO

LIC

IES

Arge

ntin

aM

arch

Soyb

eans

Cul

tivat

ion

of a

new

GM

soy

bean

var

iety

resi

stan

t to

herb

icid

es c

onta

inin

g gl

ypho

sate

, glu

fosa

te a

nd

isox

aflut

ole

(‘MTS

-FG

072’

ow

ned

by B

ayer

SA)

has

bee

n ap

prov

ed in

Arg

entin

a. T

he a

ppro

val c

omes

on

the

heel

s of

a lo

ng-a

wai

ted

agre

emen

t sea

led

last

Feb

ruar

y be

twee

n th

e co

untry

's m

ain

farm

ers

and

seed

pro

duce

r as

soci

atio

ns, w

hich

pav

ed th

e w

ay fo

r ne

w s

eed

varie

ties

to re

ach

Arge

ntin

a’s

farm

ers

(see

MPP

U M

ar.’1

8).

175

SEED

& G

MO

PO

LIC

IES

Aust

ralia

Febr

uary

Rape

seed

Aust

ralia

n re

gula

tors

app

rove

d ge

netic

ally

mod

ified

(G

M)

omeg

a3-r

ich

rape

seed

for

bot

h hu

man

co

nsum

ptio

n an

d us

e in

lives

tock

/aqu

acul

ture

feed

(see

also

MPP

U J

une’

17).

Hop

ing

that

the

appr

oval

w

ill sm

ooth

en re

gula

tory

revi

ews

in o

ther

cou

ntrie

s, th

e se

ed fi

rm th

at d

evel

oped

the

new

pro

duct

st

arte

d pl

anni

ng th

e va

riety

’s co

mm

erci

al re

leas

e in

Aus

tralia

, the

Uni

ted

Stat

es, C

anad

a an

d po

ssib

ly

Chi

na. T

he c

ompa

ny in

tend

s to

prod

uce

the

crop

und

er a

clo

sed-

loop

gra

in h

andl

ing

and

oil p

roce

ssin

g sy

stem

.

Oilcrops complex: Policy changes and industry measures - Annual compendium 2018 33

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n*17

6SE

ED &

GM

O

POLI

CIE

SBr

azil

Febr

uary

Soyb

eans

Seed

pat

ent d

ispu

te:

In B

razil

, a fe

dera

l cou

rt or

dere

d th

at p

aten

t rig

hts

for M

onsa

nto’

s G

M s

oybe

an

varie

ty 'I

ntac

taRR

2Pro

' (w

hich

was

gra

nted

in 2

012

for

a pe

riod

of 1

0 ye

ars)

be

revo

ked,

citi

ng a

re

com

men

datio

n is

sued

by

Braz

il’s p

aten

t re

gula

tor,

INPI

. In

a w

ritte

n op

inio

n, t

he p

aten

t ag

ency

ba

cked

the

posi

tion

of a

dom

estic

soy

bean

gro

wer

s as

soci

atio

n (A

pros

oja)

, whi

ch c

laim

ed th

at th

e pa

tent

was

inco

nsis

tent

with

nat

iona

l pat

ent r

egul

atio

ns. M

onsa

nto

inte

nds

to a

ppea

l the

cou

rt or

der,

whi

ch b

ars t

he c

ompa

ny fr

om c

olle

ctin

g ro

yalti

es o

n sa

les o

f the

seed

. Acc

ordi

ng to

indu

stry

est

imat

es,

abou

t 20

milli

on h

ecta

res

are

curre

ntly

pla

nted

with

the

soyb

ean

varie

ty in

que

stio

n, w

ith e

ach

hect

are

plan

ted

gene

ratin

g ro

yalty

pay

men

ts o

f abo

ut B

RL 1

30 (U

SD 3

9.69

).

177

SEED

& G

MO

PO

LIC

IES

Braz

ilM

arch

Soyb

eans

Thre

e ne

w G

M s

oybe

an v

arie

ties

(dic

amba

/gly

phos

ate

resi

stan

t ‘In

tact

a2Xt

end’

by

Mon

sant

o, a

nd tw

o lin

es o

f hig

h-ol

eic

acid

eve

nt ‘D

P-30

5423

-1’ b

y Du

Pont

) hav

e re

ceiv

ed re

gula

tory

app

rova

l in

Braz

il.

Full

com

mer

cial

laun

ch o

f the

new

var

ietie

s is

exp

ecte

d in

abo

ut 2

yea

rs, p

endi

ng th

e re

sults

of f

arm

tri

als

and

the

outc

ome

of re

gula

tory

revi

ews

in k

ey s

oybe

an im

port

mar

kets

.

178

SEED

& G

MO

PO

LIC

IES

Braz

ilJu

lySo

ybea

nsSe

ed p

aten

t di

sput

e: P

endi

ng t

he o

utco

me

of l

itiga

tion

over

a p

aten

t di

sput

e be

twee

n Br

azilia

n so

ybea

n gr

ower

s an

d se

ed c

ompa

ny M

onsa

nto,

a ju

dge

in M

ato

Gro

sso

Stat

e or

dere

d M

onsa

nto

to

depo

sit r

oyal

ties

colle

cted

on

soyb

ean

varie

ty ‘I

ntac

taRR

2Pro

’ in

an e

scro

w a

ccou

nt (s

ee a

lso M

PPU

M

ar.’1

8). S

oybe

an g

row

ers

expe

ct M

onsa

nto

to c

olle

ct B

RL 8

00 m

illion

(USD

205

milli

on) i

n ro

yalti

es

in th

e 20

17/1

8 cr

op c

ycle

.

179

SEED

& G

MO

PO

LIC

IES

Euro

pean

U

nion

, Uni

ted

Stat

es, C

hina

July

Gen

e-ed

ited

crop

sG

ene-

editi

ng: T

he C

ourt

of Ju

stic

e of t

he E

urop

ean

Uni

on ru

led

that

crop

s and

oth

er o

rgan

ism

s obt

aine

d th

roug

h re

cent

ly im

prov

ed g

enom

e ed

iting

tech

niqu

es (a

lso

know

n as

‘gen

e-ed

iting

’ or ‘

mut

agen

esis

’) fa

ll un

der E

U la

ws

regu

latin

g th

e us

e of

GM

Os.

The

rulin

g su

bjec

ts th

e na

med

org

anis

ms

– as

wel

l as

food

and

feed

pro

duct

s co

ntai

ning

them

– to

leng

thy

appr

oval

pro

cess

es a

nd s

tring

ent t

race

abilit

y, la

bellin

g an

d m

onito

ring

requ

irem

ents

. Onl

y su

ch o

rgan

ism

s th

at h

ave

conv

entio

nally

bee

n us

ed in

a

num

ber o

f app

licat

ions

and

hav

e a

long

saf

ety

reco

rd m

ay b

e ex

empt

ed. M

utag

enes

is re

fers

to a

se

t of t

echn

ique

s th

at, u

nlik

e tra

ns-g

enes

is, m

ake

it po

ssib

le to

alte

r the

gen

ome

of a

livi

ng s

peci

es

with

out t

he in

serti

on o

f for

eign

DN

A, w

hile

cau

sing

mut

atio

ns b

y ch

angi

ng (o

r ‘ed

iting

’) a

few

pie

ces

of

DNA

code

. See

d co

mpa

nies

and

rese

arch

inst

itute

s ar

ound

the

wor

ld h

ave

show

n in

tere

st in

the

new

te

chni

que

as it

allo

ws

for f

aste

r and

mor

e pr

ecis

e br

eedi

ng (s

ee a

lso M

PPU

Dec

.’16,

Jan

.’18

& M

ay’1

8).

Whi

le t

he E

U’s

biot

ech

indu

stry

poi

nted

out

tha

t ge

ne-e

ditin

g ha

rdly

diff

ers

from

mut

agen

esis

tha

t oc

curs

nat

ural

ly (o

r fro

m lo

ng-e

stab

lishe

d te

chni

ques

that

use

che

mic

al, r

adia

tion

or o

ther

phy

sica

l st

imul

i to

indu

ce m

utat

ions

), th

e C

ourt

mai

ntai

ned

that

the

risks

link

ed to

the

new

bre

edin

g m

etho

ds

mig

ht p

rove

to b

e si

mila

r to

thos

e re

sulti

ng fr

om th

e pr

oduc

tion

and

rele

ase

of G

MO

s. T

he C

ourt’

s po

sitio

n di

ffers

from

that

ado

pted

in th

e U

nite

d St

ates

, whe

re, i

n M

arch

201

8, U

SDA

chos

e no

t to

regu

late

inno

vativ

e pl

ant b

reed

ing

tech

niqu

es s

uch

as g

enom

e ed

iting

, the

reby

low

erin

g th

e co

st fo

r m

eetin

g re

gula

tory

requ

irem

ents

and

exp

editi

ng m

arke

t ent

ry. O

ther

cou

ntrie

s, in

clud

ing

Chi

na, h

ave

take

n a

sim

ilar a

ppro

ach.

Acc

ordi

ng to

priv

ate

sour

ces,

in th

e la

st te

n ye

ars,

the

high

est n

umbe

r of

pate

nt a

pplic

atio

ns u

sing

the

new

bre

edin

g te

chni

ques

has

bee

n fil

ed in

Chi

na, f

ollo

wed

, at

som

e di

stan

ce, b

y th

e U

S an

d th

e EU

, whe

re u

ncer

tain

ties

rega

rdin

g re

gula

tion

and

cons

umer

acc

epta

nce

pers

iste

d.

34 Oilcrops complex: Policy changes and industry measures - Annual compendium 2018

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n*18

0SE

ED &

GM

O

POLI

CIE

SU

nite

d St

ates

May

GM

cro

psFo

od p

rodu

ct la

bellin

g:

In t

he U

nite

d St

ates

, di

scus

sion

s ab

out

prod

uct

cove

rage

und

er a

GM

O

labe

lling

legi

slat

ion

pass

ed in

201

6 go

on

(see

MPP

U A

ug.’1

6 &

Oct

.’17)

. Res

pond

ing

to a

USD

A ca

ll fo

r pu

blic

com

men

ts,

food

ind

ustry

rep

rese

ntat

ives

rei

tera

ted

that

all

ingr

edie

nts

that

hav

e un

derg

one

gene

tic m

odifi

catio

n sh

ould

be

subj

ect t

o la

bellin

g, w

here

as fa

rmer

s m

aint

ain

that

labe

ls

shou

ld e

xclu

de f

ood

ingr

edie

nts

refin

ed a

nd p

roce

ssed

to

the

poin

t th

at t

hey

no lo

nger

con

tain

tra

nsfo

rmed

gen

es. F

ood

man

ufac

ture

rs a

rgue

d th

at c

ompr

ehen

sive

labe

lling

is im

porta

nt fo

r bo

th

cons

iste

ncy

and

for m

eetin

g co

nsum

er e

xpec

tatio

ns o

n tra

nspa

renc

y, ad

ding

that

exc

ludi

ng re

fined

in

gred

ient

s w

ould

resu

lt in

78

perc

ent f

ewer

pro

duct

s be

ing

disc

lose

d on

labe

ls. I

ndus

try p

laye

rs a

lso

see

a ne

ed fo

r fur

ther

cla

rifica

tions

in th

e fo

llow

ing

area

s: i)

con

tent

thre

shol

ds tr

igge

ring

labe

lling;

ii)

mut

ual r

ecog

nitio

n ar

rang

emen

ts fo

r im

porte

d fo

ods;

iii)

the

treat

men

t of o

rgan

ism

s ob

tain

ed th

roug

h ge

ne-e

ditin

g te

chni

ques

; and

iv) e

xem

ptio

ns a

pply

ing

to v

ery

smal

l foo

d m

anuf

actu

rers

as

wel

l as

to

inci

dent

al a

dditi

ves,

food

from

ani

mal

s fe

d w

ith G

M fe

ed, f

ood

serv

ed in

rest

aura

nts

and

orga

nic

food

.

181

SEED

& G

MO

PO

LIC

IES

Uni

ted

Stat

esDe

cem

ber

GM

food

Food

pro

duct

labe

lling:

En

ding

a r

ule

mak

ing

proc

ess

that

beg

an in

201

6 an

d in

clud

ed a

pub

lic

com

men

t per

iod

(see

also

MPP

U A

ug.’1

6, O

ct.’1

7 &

Aug.

’18)

, USD

A ha

s re

leas

ed d

etai

led

regu

latio

ns

for

labe

lling

food

pro

duct

s th

at i

nclu

de g

enet

ical

ly m

odifi

ed m

ater

ial.

The

new

nat

iona

l st

anda

rd

requ

ires

food

man

ufac

ture

rs, i

mpo

rters

and

cer

tain

reta

ilers

to e

nsur

e th

at ‘b

ioen

gine

ered

’ foo

ds a

re

appr

opria

tely

dis

clos

ed v

ia e

ither

text

, sym

bol,

elec

troni

c/di

gita

l lin

k or

text

mes

sage

. Pro

duct

s w

ith

up to

5 p

erce

nt in

adve

rtent

or t

echn

ical

ly u

navo

idab

le p

rese

nce

of b

ioen

gine

ered

sub

stan

ces

for e

ach

ingr

edie

nt a

re e

xem

pt. T

he te

rm ‘m

ay b

e bi

oeng

inee

red’

can

not b

e us

ed. I

mpo

rtant

ly, th

e fin

al r

ule

does

not

requ

ire la

bellin

g of

hig

hly

refin

ed in

gred

ient

s fro

m G

M c

rops

(suc

h as

refin

ed v

eget

able

oils

, hi

gh f

ruct

ose

mai

ze s

yrup

and

refi

ned

beet

or

cane

sug

ar),

prov

ided

no

mod

ified

gen

etic

mat

eria

l is

det

ecta

ble.

Not

with

stan

ding

, m

anuf

actu

rers

are

allo

wed

to

mak

e vo

lunt

ary

disc

losu

res

on s

uch

prod

ucts

in th

e in

tere

st o

f tra

nspa

renc

y, la

bellin

g th

eir p

rodu

cts

as ‘d

eriv

ed fr

om b

ioen

gine

erin

g’ (N

B:

volu

ntar

y bi

oeng

inee

red

disc

losu

re is

not

per

mitt

ed fo

r foo

ds d

eriv

ed fr

om a

nim

als

fed

bioe

ngin

eere

d fe

ed).

In t

his

rega

rd,

food

ind

ustry

rep

rese

ntat

ives

had

fav

oure

d m

ore

com

preh

ensi

ve l

abel

ling

requ

irem

ents

, arg

uing

tha

t ex

clud

ing

refin

ed in

gred

ient

s co

uld

conf

use

cons

umer

s an

d er

ode

trust

in

bra

nds

and

the

tech

nolo

gy. O

n a

sepa

rate

poi

nt, c

onsu

mer

adv

ocac

y gr

oups

rem

arke

d th

at t

he

final

rul

e do

es n

ot d

efine

‘non

-GM

O’ a

nd t

hus

does

not

pro

vide

gui

danc

e on

whe

n a

food

can

be

volu

ntar

ily la

belle

d as

‘non

-GM

O’.

The

impl

emen

tatio

n da

te o

f the

new

sta

ndar

d is

1 J

anua

ry 2

020

(or

1 Ja

nuar

y 20

21 fo

r sm

all f

ood

man

ufac

ture

rs).

How

ever

, com

plia

nce

will

beco

me

man

dato

ry o

nly

on

1 Ja

nuar

y 20

22. R

egul

ated

ent

ities

may

vol

unta

rily

com

ply

befo

re th

at d

ate.

Bus

ines

ses

with

ann

ual

sale

s be

low

USD

2.5

milli

on w

ill be

exe

mpt

from

the

new

labe

lling

requ

irem

ents

.

182

OTH

ER P

OLI

CIE

S –

Prod

uctio

n su

stai

nabi

lity

/ env

ironm

enta

l pol

icie

s

Braz

ilM

aySo

ybea

nsIn

May

, Bra

zil’s

envi

ronm

enta

l age

ncy

IBAM

A is

sued

fine

s w

orth

USD

29

milli

on to

five

larg

e tra

ding

fir

ms

as w

ell a

s do

zens

of f

arm

ers

for f

ailin

g to

resp

ect e

mba

rgoe

s th

at w

ere

put o

n ille

gally

def

ores

ted

land

loca

ted

acro

ss th

e co

untry

’s C

erra

do re

gion

. The

cas

e co

ncer

ned

grai

ns g

row

n on

land

dec

lare

d off

-lim

its fo

r far

min

g to

allo

w n

ativ

e ve

geta

tion

to re

grow

. IBA

MA

dete

cted

the

conc

erne

d ar

eas

usin

g ge

ospa

tial d

ata.

183

OTH

ER P

OLI

CIE

S –

Prod

uctio

n su

stai

nabi

lity

/ env

ironm

enta

l pol

icie

s

Ecua

dor

May

Oil

palm

The

Gov

ernm

ent

of E

cuad

or p

rese

nted

a fi

ve-y

ear

actio

n pl

an t

o m

ake

the

coun

try’s

palm

oil

supp

ly c

hain

mor

e su

stai

nabl

e. A

key

obj

ectiv

e of

the

USD

1.2

billi

on p

rogr

amm

e is

to m

ake

RSPO

(R

ound

tabl

e on

Sus

tain

able

Pal

m O

il) ce

rtific

atio

n th

e no

rm, n

atio

n-w

ide.

The

Gov

ernm

ent i

s pl

anni

ng

to p

lace

taxe

s co

llect

ed fr

om p

alm

oil

expo

rters

into

a p

ublic

/priv

ate-

cont

rolle

d fu

nd fo

r the

sup

port

of s

mal

lhol

ders

shi

fting

to

mor

e su

stai

nabl

e pr

oduc

tion

met

hods

and

, eve

ntua

lly, c

ertifi

catio

n. T

he

envi

sage

d ju

risdi

ctio

nal c

ertifi

catio

n w

ould

rely

ent

irely

on

RSPO

’s in

tern

atio

nally

reco

gnize

d no

rms

as

oppo

sed

to a

pur

pose

-mad

e na

tiona

l sta

ndar

d (s

ee a

lso M

PPU

Nov

.’16)

.

Oilcrops complex: Policy changes and industry measures - Annual compendium 2018 35

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n*18

4O

THER

PO

LIC

IES

– Pr

oduc

tion

sust

aina

bilit

y / e

nviro

nmen

tal p

olic

ies

Euro

pean

U

nion

Nov

embe

r–De

cem

ber

Biof

uels

The

EU’s

Cou

ncil

and

Parli

amen

t hav

e fo

rmal

ly a

ppro

ved

key

chap

ters

of t

he b

loc’

s bi

oene

rgy

polic

y re

form

, inc

ludi

ng th

e pl

an to

pha

se-o

ut, b

y 20

30, t

he c

onsu

mpt

ion

of c

rop-

base

d bi

ofue

ls th

at b

ring

abou

t stro

ng in

dire

ct la

nd u

se c

hang

es (s

ee a

lso M

PPU

Aug

.’18)

.

185

OTH

ER P

OLI

CIE

S –

Prod

uctio

n su

stai

nabi

lity

/ env

ironm

enta

l pol

icie

s

Fran

ceJu

lySo

ybea

ns, p

alm

oi

lTh

e Fr

ench

Agr

icul

tura

l Min

istry

laun

ched

a p

ublic

con

sulta

tion

on it

s dr

aft N

atio

nal S

trate

gy to

Com

bat

Impo

rted

Defo

rest

atio

n (S

NDI

). As

par

t of t

he G

over

nmen

t’s 2

017

Plan

Clim

at (d

evel

oped

follo

win

g th

e U

NFC

C P

aris

Agr

eem

ent),

the

prop

osed

stra

tegy

is a

imed

at e

ndin

g th

e im

porta

tion

of fo

rest

ry a

nd,

espe

cial

ly, a

gric

ultu

ral p

rodu

cts

that

con

tribu

te to

def

ores

tatio

n. In

itial

ly, th

e st

rate

gy w

ould

focu

s on

th

e fo

llow

ing

agric

ultu

ral c

omm

oditi

es: s

oybe

ans,

pal

m o

il, bo

vine

mea

t, co

coa

and

rubb

er.

186

OTH

ER P

OLI

CIE

S –

Prod

uctio

n su

stai

nabi

lity

/ env

ironm

enta

l pol

icie

s

Fran

ceN

ovem

ber

Soyb

eans

, pal

m

oil

Follo

win

g a

publ

ic c

onsu

ltatio

n pr

oces

s, th

e Fr

ench

Gov

ernm

ent h

as fi

naliz

ed it

s ‘N

atio

nal S

trate

gy

to C

omba

t Im

porte

d De

fore

stat

ion’

. The

new

pol

icy

coul

d aff

ect i

mpo

rts o

f, in

ter a

lia, s

oybe

ans

and

palm

oil (

see

also

MPP

U O

ct.’1

8). A

imed

at e

ndin

g ‘im

porte

d de

fore

stat

ion’

by

2030

, the

Gov

ernm

ent’s

ac

tion

plan

env

isag

es 1

7 m

easu

res,

cov

erin

g th

e fo

llow

ing

area

s: i)

fina

ncia

l ass

ista

nce

for e

xpor

ting

coun

tries

that

intro

duce

stri

ct fo

rest

pro

tect

ion

polic

ies;

ii) th

e in

trodu

ctio

n of

‘zer

o-de

fore

stat

ion’

labe

ls

acro

ss d

omes

tic in

dust

ries,

sta

rting

with

the

agric

ultu

ral a

nd fo

rest

ry s

ecto

rs; i

ii) th

e im

plem

enta

tion

of z

ero-

defo

rest

atio

n pu

blic

pro

cure

men

t po

licie

s; iv

) the

gra

dual

pha

sing

-out

of

biof

uels

link

ed t

o de

fore

stat

ion;

and

v) a

ctio

ns in

sup

port

of a

n EU

-wid

e po

licy

on im

ports

that

pos

e ris

ks fo

r for

ests

.

187

OTH

ER P

OLI

CIE

S –

Prod

uctio

n su

stai

nabi

lity

/ env

ironm

enta

l pol

icie

s

Fran

ceDe

cem

ber

Palm

oil-

base

d bi

odie

sel

The

Fren

ch N

atio

nal A

ssem

bly

vote

d to

end

– o

n en

viro

nmen

tal g

roun

ds –

tax

ince

ntiv

es p

rovi

ded

whe

n pa

lm o

il-ba

sed

biod

iese

l is

adde

d to

regu

lar t

rans

port

dies

el. U

nder

the

parli

amen

tary

dec

isio

n,

as o

f 202

0, p

alm

oil-

base

d bi

odie

sel w

ould

be

treat

ed a

s re

gula

r die

sel r

athe

r tha

n gr

een

fuel

and

wou

ld

no lo

nger

cou

nt to

war

ds th

e EU

’s ta

rget

s fo

r ren

ewab

le e

nerg

y in

tran

spor

t.

188

OTH

ER P

OLI

CIE

S –

Prod

uctio

n su

stai

nabi

lity

/ env

ironm

enta

l pol

icie

s

Indo

nesi

aJa

nuar

yO

il pa

lmQ

uotin

g offi

cial

sou

rces

, a c

ivil s

ocie

ty g

roup

repo

rted

that

– a

s a

resu

lt of

the

natio

nal m

orat

oriu

m o

n oi

l pa

lm e

xpan

sion

ann

ounc

ed b

y th

e In

done

sian

Pre

side

nt in

201

6 (s

ee M

PPU

Jun

e &

Aug.

’16)

– th

ere

are

1.5

milli

on h

ecta

res

for w

hich

the

proc

essi

ng o

f new

oil p

alm

con

cess

ions

has

bee

n pu

t on

hold

. At t

he

sam

e tim

e, o

bser

vers

poi

nted

out

that

four

new

per

mits

for a

reas

com

pris

ing

high

-den

sity

fore

st c

over

w

ere

issu

ed la

st y

ear i

n th

e pr

ovin

ces

of P

apua

and

Wes

t Pap

ua. A

ccor

ding

to G

over

nmen

t offi

cial

s,

the

perm

its in

que

stio

n ha

d be

en a

ppro

ved

in p

rinci

ple

by th

e pr

evio

us a

dmin

istra

tion

in 2

013–

14.

189

OTH

ER P

OLI

CIE

S –

Prod

uctio

n su

stai

nabi

lity

/ env

ironm

enta

l pol

icie

s

Indo

nesi

aJa

nuar

yPa

lm o

ilN

atio

nal p

alm

oil

certi

ficat

ion:

In

Indo

nesi

a, w

here

ISPO

cer

tifica

tion

(Indo

nesi

a Su

stai

nabl

e Pa

lm O

il) is

man

dato

ry s

ince

201

5, th

e la

test

ava

ilabl

e es

timat

e pu

ts c

ertifi

catio

n at

17

perc

ent o

f tot

al p

lant

atio

n ar

ea. R

epor

tedl

y, to

rais

e th

e le

vel o

f cer

tifica

tion,

the

Gov

ernm

ent i

s wor

king

on

a pr

esid

entia

l reg

ulat

ion

to s

treng

then

sup

ervi

sion

mec

hani

sms

and

impr

ove

coor

dina

tion

betw

een

conc

erne

d go

vern

men

t ag

enci

es.

190

OTH

ER P

OLI

CIE

S –

Prod

uctio

n su

stai

nabi

lity

/ env

ironm

enta

l pol

icie

s

Indo

nesi

aFe

brua

ryPe

atla

ndFu

rther

to

setti

ng u

p, in

201

6, a

n ag

ency

res

pons

ible

for

coo

rdin

atin

g th

e re

stor

atio

n of

dam

aged

pe

atla

nd (s

ee M

PPU

Feb

.’16)

, in

Febr

uary

201

8, th

e G

over

nmen

t cha

nnel

ed U

SD 2

1.7

milli

on in

sta

te

fund

s to

the

gove

rnor

s of s

even

pro

vinc

es d

esig

nate

d as

prio

rity i

nter

vent

ion

area

s for

field

pro

gram

mes

to

acc

eler

ate

peat

rest

orat

ion,

a c

ivil s

ocie

ty g

roup

repo

rted.

The

pro

vinc

es c

once

rned

are

Cen

tral, W

est

and

Sout

h Ka

liman

tan,

Sou

th S

umat

ra, R

iau,

Jam

bi a

nd P

apua

. The

dra

inag

e an

d su

bseq

uent

bur

ning

of

pea

tland

for a

gric

ultu

re a

nd p

lant

atio

ns re

pres

ent a

maj

or s

ourc

e of

car

bon

emis

sion

s. O

n a

rela

ted

note

, a g

roup

of I

ndon

esia

n re

sear

cher

s ha

s de

velo

ped

a m

etho

dolo

gy fo

r map

ping

pea

tland

usi

ng

rem

ote

sens

ing

tech

nolo

gies

, com

bine

d w

ith e

stab

lishe

d on

-the-

grou

nd m

easu

rem

ents

. Rep

orte

dly,

mea

surin

g th

e ex

tent

and

dep

th o

f pea

t soi

ls is

ess

entia

l for

ass

essi

ng e

colo

gica

l dam

age

resu

lting

fro

m d

istu

rban

ces.

Alle

gedl

y, th

e In

done

sian

Gov

ernm

ent i

nten

ds to

use

the

new

met

hodo

logy

in th

e pr

otec

tion,

sus

tain

ably

man

agem

ent a

nd re

stor

atio

n of

pea

tland

are

as.

36 Oilcrops complex: Policy changes and industry measures - Annual compendium 2018

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n*19

1O

THER

PO

LIC

IES

– Pr

oduc

tion

sust

aina

bilit

y / e

nviro

nmen

tal p

olic

ies

Indo

nesi

aAp

rilO

il pa

lmLa

nd g

over

nanc

e:

The

Gov

ernm

ent

of I

ndon

esia

ann

ounc

ed t

hat

a un

ified

dat

abas

e in

tegr

atin

g va

rious

land

-use

map

s –

incl

udin

g a

map

on

oil p

alm

pla

ntat

ions

– w

ill be

com

plet

ed la

ter t

his

year

(s

ee a

lso M

PPU

Aug

.’16)

. The

new

tool

cou

ld b

e cr

ucia

l in

the

man

agem

ent o

f Ind

ones

ia’s

fore

sts

and

natu

ral r

esou

rces

. In

parti

cula

r, th

e in

tegr

ated

map

cou

ld h

elp

iden

tify

over

lapp

ing

land

con

cess

ions

an

d ad

dres

s th

e pr

oble

m o

f ille

gal p

lant

atio

ns in

side

fore

st a

reas

.

192

OTH

ER P

OLI

CIE

S –

Prod

uctio

n su

stai

nabi

lity

/ env

ironm

enta

l pol

icie

s

Indo

nesi

aAp

rilPa

lm o

ilM

anda

tory

cer

tifica

tion:

In

Indo

nesi

a, s

mal

l oil

palm

farm

ers

have

bee

n gi

ven

time

until

end

202

0 to

ac

hiev

e IS

PO (I

ndon

esia

n Su

stai

nabl

e Pa

lm O

il) ce

rtific

atio

n. H

owev

er, b

ased

on

a re

cent

stu

dy b

y In

done

sia’

s Bo

gor I

nstit

ute

of A

gric

ultu

re, s

mal

lhol

ders

– w

ho a

ccou

nt fo

r 40

perc

ent o

f the

cou

ntry

’s oi

l pal

m p

lant

atio

n ar

ea –

may

not

be

read

y to

ado

pt th

e na

tiona

l sta

ndar

d. R

epor

tedl

y, sm

all g

row

ers

are

face

d w

ith a

var

iety

of c

halle

nges

, in

parti

cula

r a la

ck o

f ass

ista

nce

in a

dopt

ing

agric

ultu

ral b

est

prac

tices

and

unc

lear

land

ow

ners

hip

stat

us (

NB:

in o

rder

to

qual

ify f

or c

ertifi

catio

n, f

arm

ers

are

requ

ired

to p

rove

lega

l ow

ners

hip

of t

heir

land

). Es

peci

ally

in t

hose

inst

ance

s w

here

sm

allh

olde

rs

man

age

plan

tatio

ns in

side

fore

st a

reas

, obt

aini

ng th

e re

quire

d la

nd ti

tles

may

pro

ve d

ifficu

lt. A

noth

er

prob

lem

is th

at m

any

farm

ers

lack

acc

ess

to IS

PO-c

ompl

iant

see

dlin

gs a

nd fe

rtiliz

er (t

he u

se o

f whi

ch

has

been

mad

e m

anda

tory

in a

bid

to b

oost

pro

duct

ivity

on

smal

l far

ms)

.

193

OTH

ER P

OLI

CIE

S –

Prod

uctio

n su

stai

nabi

lity

/ env

ironm

enta

l pol

icie

s

Indo

nesi

aSe

ptem

ber

Oil

palm

Und

er c

onsi

dera

tion

sinc

e m

ore

than

tw

o ye

ars

(see

MPP

U J

une,

Aug

.’16

& M

ar.’1

8), a

thr

ee-y

ear

natio

nwid

e m

orat

oriu

m o

n ne

w o

il pa

lm p

lant

atio

n lic

ense

s ha

s fin

ally

bee

n si

gned

by

Indo

nesi

a’s

Pres

iden

t in

Sept

embe

r. Th

e in

itiat

ive

is p

art o

f wid

er e

fforts

to p

rote

ct th

e co

untry

’s en

viro

nmen

t and

co

mpl

emen

ts a

ban

on

prim

ary

fore

st a

nd p

eat l

and

clea

ring

that

is in

pla

ce s

ince

201

1 (s

ee M

PPU

Au

g.’1

1, J

une’

13, M

ay’1

5 &

June

’17)

. The

new

mor

ator

ium

is a

imed

at i

mpr

ovin

g th

e go

vern

ance

of

sust

aina

ble

prod

uctio

n, g

uara

ntee

ing

envi

ronm

enta

l pre

serv

atio

n an

d pr

ovid

ing

lega

l cla

rity,

as w

ell a

s at

ince

ntiv

izing

farm

ers

to ra

ise

yiel

ds o

n la

nd c

urre

ntly

und

er c

ultiv

atio

n. Im

porta

ntly,

the

mor

ator

ium

do

es n

ot o

nly

appl

ies

to n

ew re

ques

ts fo

r lic

ense

s bu

t als

o to

per

mits

that

are

cur

rent

ly u

nder

revi

ew.

Acco

rdin

gly,

gove

rnor

s, m

ayor

s an

d di

stric

t chi

efs

have

bee

n in

stru

cted

to re

-eva

luat

e lo

ng-s

tand

ing

perm

its th

at h

ave

been

issu

ed b

ut n

ot y

et im

plem

ente

d, in

par

ticul

ar lic

ense

s th

at in

volv

e fo

rest

are

as.

Civ

il soc

iety

gro

ups,

whi

ch h

ad c

alle

d fo

r a p

erm

anen

t ban

, ask

ed fo

r the

dat

a ga

ther

ed u

nder

the

perm

it re

view

to b

e m

ade

publ

icly

ava

ilabl

e. T

hey

also

spo

tted

perc

eive

d w

eakn

esse

s in

the

mor

ator

ium

’s la

w-

enfo

rcem

ent a

nd re

ques

ted

that

pol

ice

forc

es, t

he A

ttorn

ey G

ener

al O

ffice

and

the

coun

try’s

anti-

graf

t ag

ency

be

invo

lved

in th

e in

vest

igat

ions

.

194

OTH

ER P

OLI

CIE

S –

Prod

uctio

n su

stai

nabi

lity

/ env

ironm

enta

l pol

icie

s

Indo

nesi

aDe

cem

ber

Oil

palm

Land

gov

erna

nce:

The

Indo

nesi

an G

over

nmen

t pub

lishe

d a

unifi

ed, n

atio

nal m

ap o

f lan

d-us

e co

ver,

in a

bi

d to

reso

lve

clai

ms

rela

ted

to o

verla

ppin

g co

nces

sion

s (fo

r min

ing,

pla

ntat

ion

and

fore

st c

onse

rvat

ion)

th

at h

ave

give

n ris

e to

soc

ial c

onfli

cts

and

envi

ronm

enta

l pro

blem

s. T

he d

etai

led

map

reco

ncile

s 85

th

emat

ic m

aps

man

aged

by

19 d

iffer

ent g

over

nmen

t age

ncie

s. R

epor

tedl

y, th

e ad

ditio

n of

map

s on

cu

stom

ary

fore

sts,

indi

geno

us te

rrito

ries,

min

ing

conc

essi

ons

and

oil p

alm

pla

ntat

ions

is s

till u

nder

co

nsid

erat

ion,

whi

le re

gula

tions

gov

erni

ng d

ata

shar

ing

and

acce

ss a

re c

urre

ntly

bei

ng d

rafte

d (s

ee

MPP

U M

ay.’1

8).

195

OTH

ER P

OLI

CIE

S –

Prod

uctio

n su

stai

nabi

lity

/ env

ironm

enta

l pol

icie

s

Mal

aysi

aJa

nuar

yPa

lm o

ilN

atio

nal p

alm

oil

certi

ficat

ion:

In

Mal

aysi

a, a

s of

Jan

uary

201

8, 5

9 ex

tract

ion

plan

ts a

nd 6

33 0

00

hect

ares

of p

lant

atio

ns (o

r 11

perc

ent o

f the

cou

ntry

’s to

tal a

rea

unde

r oil p

alm

) are

cer

tified

sus

tain

able

ac

cord

ing

to th

e co

untry

’s M

alay

sian

Sus

tain

able

Pal

m O

il (M

SPO

) sch

eme.

Bac

k in

Aug

ust 2

017,

no

mor

e th

an 4

per

cent

of t

he c

ount

ry’s

tota

l pla

ntat

ion

area

was

MSP

O-c

ertifi

ed. M

SPO

cer

tifica

tion

is

set t

o be

com

e m

anda

tory

dur

ing

the

cour

se o

f nex

t yea

r. To

faci

litat

e th

is p

roce

ss, g

row

ers

and

mille

rs

unde

rgoi

ng c

ertifi

catio

n ar

e el

igib

le fo

r fina

ncia

l sup

port

from

the

Gov

ernm

ent (

see

MPP

U D

ec.’1

7).

Oilcrops complex: Policy changes and industry measures - Annual compendium 2018 37

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n*19

6O

THER

PO

LIC

IES

– Pr

oduc

tion

sust

aina

bilit

y / e

nviro

nmen

tal p

olic

ies

Mal

aysi

aSe

ptem

ber

Palm

oil

Acco

rdin

g to

loca

l med

ia, M

alay

sia’

s Prim

ary I

ndus

try M

inis

try so

ught

the

assi

stan

ce o

f the

gov

ernm

ent

of S

abah

sta

te t

o en

sure

tha

t lo

cal

smal

lhol

ders

obt

ain

Mal

aysi

an S

usta

inab

le P

alm

Oil

(MSP

O)

certi

ficat

ion,

whi

ch is

due

to

beco

me

man

dato

ry a

cros

s th

e co

untry

on

1 Ja

nuar

y 20

20. L

ast

year

, Sa

bah’

s au

thor

ities

ann

ounc

ed p

lans

to

proc

eed

with

a s

epar

ate

certi

ficat

ion

sche

me

(see

MPP

U

Dec.

’17)

. Bas

ed o

n offi

cial

dat

a, a

cros

s th

e co

untry

, mer

ely

5.2

perc

ent o

f the

2.2

7 m

illion

hec

tare

s of

sm

allh

olde

r’s p

lant

atio

ns h

ad a

chie

ved

MSP

O c

ertifi

catio

n as

of J

uly

2018

.

197

OTH

ER P

OLI

CIE

S –

Prod

uctio

n su

stai

nabi

lity

/ env

ironm

enta

l pol

icie

s

Nor

way

Dece

mbe

rBi

ofue

lsTh

e N

orw

egia

n Pa

rliam

ent

requ

este

d th

e co

untry

’s G

over

nmen

t to

for

mul

ate

a co

mpr

ehen

sive

pr

opos

al fo

r mea

sure

s to

exc

lude

from

the

mar

ket b

iofu

els

who

se p

rodu

ctio

n en

tails

hig

h de

fore

stat

ion

risk,

effe

ctiv

e 1

Janu

ary

2020

. With

rega

rd to

pal

m o

il, Pa

rliam

enta

rians

hav

e lin

ked

indi

rect

land

use

eff

ects

aris

ing

from

pal

m o

il pro

duct

ion

to d

efor

esta

tion.

Rep

orte

dly,

in 2

017,

clo

se to

hal

f of a

ll bio

fuel

s co

nsum

ed in

the

coun

try w

ere

base

d on

pal

m o

il. Th

e co

untry

’s cu

rrent

bio

fuel

pol

icy

incl

udes

ble

ndin

g m

anda

tes

for t

rans

port

fuel

(set

at 2

0 pe

rcen

t in

2020

) and

a ro

ad ta

x ex

empt

ion

for b

iofu

el s

uppl

ied

abov

e m

anda

ted

volu

mes

. On

a re

late

d su

bjec

t, th

e N

orw

egia

n G

over

nmen

t has

ann

ounc

ed th

at, f

rom

20

20, a

irlin

es o

pera

ting

in th

e co

untry

will

be re

quire

d to

use

fuel

ble

nds

cont

aini

ng 0

.5 p

erce

nt o

f w

aste

/resi

due-

base

d bi

ofue

ls.

198

OTH

ER P

OLI

CIE

S –

Tran

spor

t inf

rast

ruct

ure

& re

gula

tions

Braz

ilFe

brua

rySo

ybea

ns,

mai

zeAc

cord

ing

to d

ata

publ

ishe

d by

Bra

zil’s

natio

nal a

genc

y fo

r w

ater

way

tra

nspo

rtatio

n, A

NTA

Q,

the

volu

me

of s

oybe

ans

and

mai

ze s

hipp

ed th

roug

h th

e co

untry

’s no

rther

n ex

port

corri

dors

(kno

wn

as

‘Arc

o N

orte

’) re

ache

d 51

.2 m

illion

ton

nes

in 2

017

– po

stin

g a

year

-on-

year

incr

ease

of 8

0 pe

rcen

t. G

row

ing

relia

nce

of C

entre

-Wes

t gra

in-p

rodu

cing

sta

tes

on b

arge

term

inal

s in

the

Amaz

on B

asin

and

se

apor

ts a

long

the

coun

try’s

Nor

ther

n co

ast i

s sa

id to

go

hand

in h

and

with

a d

econ

gest

ion

in th

e co

untry

’s tra

ditio

nal s

outh

boun

d ro

utes

. Rep

orte

dly,

last

yea

r, th

e Ar

co N

orte

acc

ount

ed fo

r 41

perc

ent

of B

razil

’s co

mbi

ned

soyb

ean

and

mai

ze s

hipm

ents

– c

ompa

red

to o

nly

23 p

erce

nt in

201

0. A

fter h

eavy

in

dust

ry in

vest

men

ts, a

bout

60

perc

ent o

f Arc

o N

orte

’s to

tal s

hipp

ing

capa

city

is re

porte

d to

be

in th

e ha

nds

of p

rivat

e co

mpa

nies

. (Se

e al

so M

PPU

Jun

e/Ju

ly/Au

g./S

ep./O

ct./D

ec.’1

7 &

Jan.

’18)

199

OTH

ER P

OLI

CIE

S –

Tran

spor

t inf

rast

ruct

ure

& re

gula

tions

Braz

ilM

ayG

rain

s, o

ilsee

dsFr

eigh

t rat

es:

In M

ay, a

nat

ionw

ide

10-d

ay s

trike

by

Braz

il’s tr

uck

driv

ers

to p

rote

st h

igh

fuel

pric

es

para

lyse

d la

rge

parts

of t

he e

cono

my.

Repo

rtedl

y, th

e co

untry

’s ag

ricul

tura

l pro

duct

ion,

pro

cess

ing,

di

strib

utio

n an

d ex

porta

tion

netw

orks

face

d se

rious

dis

rupt

ions

. In

an e

ffort

to a

ppea

se tr

ucke

rs, t

he

Braz

ilian

Gov

ernm

ent

intro

duce

d te

mpo

rary

red

uctio

ns in

fue

l tax

es a

nd im

pose

d m

inim

um f

reig

ht

rate

s. T

he la

tter

mea

sure

has

bee

n ch

alle

nged

in t

he c

ount

ry’s

Supr

eme

Cou

rt by

agr

icul

ture

and

in

dust

ry g

roup

s. F

reig

ht c

osts

pla

y a

cruc

ial r

ole

in m

any

sect

ors

beca

use

Braz

il’s tr

ansp

ort m

atrix

is

hig

hly

depe

nden

t on

road

tran

spor

t. Re

porte

dly,

unce

rtain

abo

ut h

ow tr

ansp

ort c

osts

are

goi

ng to

de

velo

p, fa

rmer

s ar

e de

layi

ng p

urch

ases

of f

ertil

izers

and

oth

er in

puts

for t

he n

ext s

easo

n, w

hile

trad

ers

are

relu

ctan

t to

sign

forw

ard

cont

ract

s fo

r the

forth

com

ing

crop

– d

espi

te e

xpec

tatio

ns o

f stro

nger

sal

es

due

to th

e on

goin

g U

.S.-C

hina

trad

e di

sput

e. P

rivat

e so

urce

s re

ckon

that

the

curre

nt, s

tate

-impo

sed

min

imum

frei

ght r

ates

pus

h up

ave

rage

tran

spor

tatio

n co

sts

for s

oybe

an a

nd m

aize

by

17–2

8 pe

rcen

t.

200

OTH

ER P

OLI

CIE

S –

Tran

spor

t inf

rast

ruct

ure

& re

gula

tions

Braz

ilAu

gust

Gra

ins,

oilc

rops

Frei

ght r

ates

: In

acc

orda

nce

with

rece

ntly

pas

sed

legi

slat

ion

auth

orizi

ng th

e Br

azilia

n G

over

nmen

t to

set m

inim

um tr

uck

freig

ht ra

tes

(see

MPP

U A

ug.’1

8), o

n 5

Sept

embe

r, th

e co

untry

’s N

atio

nal T

rans

port

Agen

cy (A

NTT

) rai

sed

natio

nwid

e m

inim

um fr

eigh

t pric

es b

y 5

perc

ent o

n av

erag

e –

in re

spon

se to

a

13 p

erce

nt ri

se in

the

pric

e of

die

sel.

Repo

rtedl

y, af

ter t

he m

ove,

load

ing

of g

rain

s an

d oi

lsee

ds a

t por

ts

has

slow

ed fu

rther

, giv

en th

e in

crea

se in

cos

ts fa

ced

by fa

rmer

s an

d ex

porte

rs. T

rade

sou

rces

est

imat

e th

at th

e in

crea

se in

rate

s ha

s ra

ised

ave

rage

frei

ght c

osts

per

tonn

e of

gra

in fr

om B

R 22

5 (U

SD 6

0.57

) to

BR

236

(USD

63.

53).

Acco

rdin

g to

the

med

ia, c

onfro

nted

with

hig

her r

oad

trans

porta

tion

cost

s, a

gr

oup

of fa

rmer

s in

Mat

o G

ross

o st

ate

is c

onsi

derin

g to

hel

p fu

nd th

e co

nstru

ctio

n of

the

prop

osed

G

rain

Rai

lroad

(Fer

rogr

ão) t

hat w

ould

link

Mat

o G

ross

o w

ith tr

ans-

ship

men

t por

ts in

the

Amaz

on b

asin

.

38 Oilcrops complex: Policy changes and industry measures - Annual compendium 2018

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n*20

1O

THER

PO

LIC

IES

– Tr

ansp

ort i

nfra

stru

ctur

e &

regu

latio

ns

Can

ada

May

Gra

ins,

oils

eeds

Can

ada’

s fe

dera

l Gov

ernm

ent

rene

wed

and

exp

ande

d th

e co

untry

’s tra

nspo

rtatio

n la

w (

know

n as

Tr

ansp

orta

tion

Mod

erni

zatio

n Ac

t), to

ens

ure

that

Can

adia

n fa

rmer

s ha

ve ti

mel

y ac

cess

to re

liabl

e ra

il se

rvic

es (i

nclu

ding

und

er a

dver

se w

eath

er c

ondi

tions

), w

hile

pre

serv

ing

ship

ping

rate

com

petit

iven

ess

and

prov

idin

g su

ffici

ent e

cono

mic

ince

ntiv

es fo

r rai

l com

pani

es to

cont

inue

inve

stin

g in

rail i

nfra

stru

ctur

e.

202

OTH

ER P

OLI

CIE

S –

Tran

spor

t inf

rast

ruct

ure

& re

gula

tions

Indo

nesi

aM

arch

Palm

oil

The

Gov

ernm

ent

of In

done

sia

dela

yed

until

202

0 re

gula

tions

req

uirin

g ex

porte

rs o

f pal

m o

il to

use

ex

clus

ivel

y In

done

sia-

flagg

ed v

esse

ls. A

imed

at f

oste

ring

the

loca

l shi

ppin

g in

dust

ry a

nd s

avin

g fo

reig

n ex

chan

ge, t

he n

ew ru

le w

as o

rigin

ally

sch

edul

ed to

take

effe

ct in

Apr

il 201

8. R

epor

tedl

y, co

ncer

ns o

ver

the

avai

labi

lity

of lo

cal v

esse

ls h

ave

led

to th

e po

stpo

nem

ent i

n th

e im

plem

enta

tion

date

.

203

OTH

ER P

OLI

CIE

S –

Ta

x po

licie

sC

hina

May

Oils

eeds

, oi

lmea

ls, e

dibl

e oi

ls

On

1 M

ay 2

018,

Chi

na’s

valu

e-ad

ded

tax

on s

ales

and

impo

rts o

f agr

icul

tura

l pro

duct

s –

incl

udin

g oi

lsee

ds, o

ilmea

ls a

nd e

dibl

e ve

geta

ble

oils

– h

as b

een

low

ered

from

11

perc

ent t

o 10

per

cent

. The

m

easu

re, w

hich

is p

art o

f a b

road

er ta

x re

duct

ion

pack

age

and

follo

ws

a fir

st, m

ore

subs

tant

ial V

AT

cut i

n 20

17 (s

ee M

PPU

Jun

e’17

), is

aim

ed a

t fac

ilitat

ing

eco

nom

ic g

row

th in

the

agric

ultu

ral s

ecto

r, es

peci

ally

in th

e pr

oces

sing

indu

stry

.

204

OTH

ER P

OLI

CIE

S –

Soci

al p

olic

ies

Mal

aysi

aSe

ptem

ber

Plan

tatio

n cr

ops

Labo

ur w

ages

: Th

e M

alay

sian

Gov

ernm

ent a

nnou

nced

that

a n

ew m

inim

um w

age

of M

YR 1

050

(USD

25

3) p

er m

onth

will

take

effe

ct n

atio

nwid

e on

1 J

anua

ry 2

019,

add

ing

that

, ove

r the

nex

t fou

r yea

rs,

pays

are

set

to re

ach

MYR

1 5

00 (U

SD 3

61).

Cur

rent

ly, th

e m

inim

um w

age

stan

ds a

t MYR

1 0

00 in

Pe

nins

ular

Mal

aysi

a an

d M

YR 9

20 in

Sab

ah a

nd S

araw

ak. A

ccor

ding

to

indu

stry

sou

rces

, the

new

w

age

polic

y ea

sed

the

conc

erns

of e

mpl

oyer

s in

the

labo

ur-in

tens

ive

plan

tatio

n in

dust

ry, a

s w

ages

pai

d in

the

sect

or te

nd to

exc

eed

the

new

ly s

tipul

ated

leve

l.

205

OTH

ER P

OLI

CIE

S –

Land

gov

erna

nce

Indo

nesi

aO

ctob

erO

il pa

lmAn

in-d

epth

ass

essm

ent o

f the

Indo

nesi

an o

il pa

lm in

dust

ry c

arrie

d ou

t by

the

coun

try’s

Cor

rupt

ion

Erad

icat

ion

Com

mis

sion

(KP

K) i

dent

ified

maj

or fl

aws

in t

he n

atio

n’s

plan

tatio

n lic

ensi

ng s

yste

m.

The

agen

cy’s

repo

rt hi

ghlig

hts

a nu

mbe

r of a

ssoc

iate

d pr

oble

ms,

incl

udin

g i)

rapi

d an

d w

ides

prea

d en

viro

nmen

tal d

egra

datio

n, ii)

hei

ghte

ned

corru

ptio

n ris

ks, a

nd iii

) the

pot

entia

l loss

of t

ax a

nd n

on-ta

x re

venu

es.

206

OTH

ER P

OLI

CIE

S –

Land

gov

erna

nce

Indo

nesi

aDe

cem

ber

Oil

palm

The

Indo

nesi

an G

over

nmen

t pub

lishe

d a

unifi

ed, n

atio

nal m

ap o

f lan

d-us

e co

ver,

in a

bid

to re

solv

e cl

aim

s re

late

d to

ove

rlapp

ing

conc

essi

ons

(for m

inin

g, p

lant

atio

n an

d fo

rest

con

serv

atio

n) th

at h

ave

give

n ris

e to

soc

ial c

onfli

cts

and

envi

ronm

enta

l pro

blem

s. T

he d

etai

led

map

reco

ncile

s 85

them

atic

m

aps

man

aged

by

19 d

iffer

ent g

over

nmen

t age

ncie

s. R

epor

tedl

y, th

e ad

ditio

n of

map

s on

cus

tom

ary

fore

sts,

indi

geno

us te

rrito

ries,

min

ing

conc

essi

ons

and

oil p

alm

pla

ntat

ions

is s

till u

nder

con

side

ratio

n,

whi

le re

gula

tions

gov

erni

ng d

ata

shar

ing

and

acce

ss a

re c

urre

ntly

bei

ng d

rafte

d (s

ee M

PPU

May

.’18)

.

* N

ote

that

for r

elat

ed h

isto

ric in

form

atio

n th

e re

ader

is d

irect

ed –

bet

wee

n br

acke

ts, i

n ita

lic p

rint –

to p

ast i

ssue

s of

the

Oilc

rops

Mon

thly

Pric

e an

d Po

licy

Upd

ate

(MPP

U),

whi

ch c

an b

e re

triev

ed

on-li

ne a

t http

://w

ww.

fao.

org/

econ

omic

/est

/pub

licat

ions

/oilc

rops

-pub

licat

ions

/mon

thly

-pric

e-an

d-po

licy-

upda

te/e

n/.

Oilcrops complex: Policy changes and industry measures - Annual compendium 2018 39

Tabl

e 3.

I

ndus

try

mea

sure

s an

d in

itiat

ives

repo

rted

in 2

018

No.

Dom

ain

Mon

thC

ount

ryD

escr

iptio

n*1

INDU

STRY

ST

ANDA

RDS

– Su

stai

nabl

e oi

l pal

m

Febr

uary

Col

ombi

aAd

vanc

ed R

SPO

sta

ndar

d: R

SPO

info

rmed

that

a C

olom

bian

agr

i-bus

ines

s co

mpa

ny c

ompl

eted

the

first

sal

e of

pal

m o

il ce

rtifie

d ac

cord

ing

to it

s RS

PO-N

ext s

tand

ard,

a v

olun

tary

add

-on

mod

ule

laun

ched

by

RSPO

in 2

016

to m

eet t

he n

eeds

of

mem

bers

exc

eedi

ng t

he b

ody’s

cor

e su

stai

nabi

lity

stan

dard

s (s

ee M

PPU

Mar

.’16)

. Rep

orte

dly,

the

audi

t pr

oces

s in

clud

ed

certi

ficat

ion

and

com

plia

nce

with

RSP

O-N

ext r

equi

rem

ents

for t

he 1

22 s

mal

lhol

der f

arm

s th

at s

uppl

y th

e co

mpa

ny’s

mill.

The

su

cces

sful

sal

e sh

ows

that

som

e bu

yers

are

sea

rchi

ng fo

r pal

m o

il pro

duce

d ac

cord

ing

to th

e hi

ghes

t sus

tain

abilit

y st

anda

rds.

2IN

DUST

RY

STAN

DARD

S –

Sust

aina

ble

oil p

alm

Febr

uary

Glo

bal

Indu

stry

sou

rcin

g po

licie

s:

New

cas

es o

f gl

obal

con

sum

er g

oods

com

pani

es/fo

od m

anuf

actu

rers

sus

pend

ing

thei

r co

mm

erci

al re

latio

nshi

p w

ith s

peci

fic p

alm

oil s

uppl

iers

ove

r cla

ims

of u

nsus

tain

able

pro

duct

ion

prac

tices

hav

e be

en re

porte

d.

The

com

pani

es c

ited

conc

erns

abo

ut a

llega

tions

that

cer

tain

sup

plie

rs w

ere

not c

ompl

ying

with

thei

r sus

tain

abilit

y po

licie

s an

d co

mm

itmen

ts. O

n a

rela

ted

note

, glo

bal c

onsu

mer

goo

ds c

ompa

ny U

nile

ver h

as p

ublic

ly d

iscl

osed

all

the

supp

liers

and

m

ills it

buy

s pa

lm o

il fro

m –

a li

st c

ompr

isin

g m

ore

than

140

0 m

ills a

nd o

ver 3

00 d

irect

sup

plie

rs. B

y em

brac

ing

com

plet

e su

pply

cha

in tr

ansp

aren

cy a

nd s

treng

then

ing

colla

bora

tion

with

its

partn

ers

and

othe

r sta

keho

lder

s, th

e co

mpa

ny h

opes

to b

e ab

le to

pro

activ

ely

iden

tify

prob

lem

s an

d ad

dres

s th

em q

uick

ly a

nd e

ffect

ivel

y. Ap

pare

ntly,

bus

ines

ses

wor

ldw

ide

are

face

d w

ith in

crea

sing

pre

ssur

e fro

m g

over

nmen

ts, c

ivil

soci

ety

grou

ps a

nd c

onsu

mer

s to

dis

clos

e ac

tions

take

n to

ens

ure

that

thei

r su

pply

cha

ins

are

free

from

uns

usta

inab

le p

ract

ices

.

3IN

DUST

RY

STAN

DARD

S –

Sust

aina

ble

oil p

alm

Mar

chC

hina

Nat

iona

l ind

ustr

y al

lianc

e:

The

Roun

dtab

le o

n Su

stai

nabl

e Pa

lm O

il (R

SPO

), a

glob

al s

tand

ard

setti

ng b

ody

for p

alm

oil,

si

gned

an

agre

emen

t with

Chi

na’s

Cha

mbe

r of C

omm

erce

for F

oods

tuffs

and

Nat

ive

Prod

ucts

(FFN

A) to

pro

mot

e in

itiat

ives

re

late

d to

sus

tain

able

pal

m o

il. In

par

ticul

ar, t

he tw

o in

stitu

tions

agr

eed

to c

oope

rate

on

prom

otio

nal a

ctiv

ities

, exc

hang

e vi

sits

an

d th

e pr

epar

atio

n of

reco

mm

enda

tions

for p

olic

y m

aker

s. G

ener

ally,

in d

evel

opin

g co

untri

es –

incl

udin

g C

hina

, the

wor

ld’s

seco

nd la

rges

t im

porte

r of p

alm

oil

– aw

aren

ess

of a

nd d

eman

d fo

r cer

tified

sus

tain

able

pal

m o

il te

nds

to b

e co

nsid

erab

ly

low

er th

an in

dev

elop

ed n

atio

ns.

4IN

DUST

RY

STAN

DARD

S –

Sust

aina

ble

oil p

alm

Mar

chG

loba

lC

ertifi

ed p

alm

oil

– pr

oduc

tion

and

sale

s:

RSPO

(Rou

ndta

ble

on S

usta

inab

le P

alm

Oil),

the

glo

bally

rec

ogni

zed,

sel

f-re

gula

ting

indu

stry

bod

y fo

r wor

ld-w

ide

palm

oil

certi

ficat

ion,

repo

rted

that

, in

Mar

ch 2

018,

glo

bal a

nnua

l pro

duct

ion

capa

city

of

cer

tified

pal

m o

il st

ood

at 1

2.08

milli

on to

nnes

, whi

ch is

equ

ival

ent t

o ab

out 1

7 pe

rcen

t of g

loba

l pro

duct

ion.

Fur

ther

mor

e,

tota

l act

ual s

ales

of c

ertifi

ed p

rodu

ct d

urin

g 20

17 w

ere

repo

rted

at 6

.16

milli

on to

nnes

, whi

ch c

ompa

res

to to

tal s

uppl

ies

of

11.8

6 m

illion

tonn

es. C

onse

quen

tly, s

imila

r to

past

yea

rs, a

ppro

xim

atel

y ha

lf of

the

avai

labl

e ce

rtifie

d pr

oduc

t did

not

find

a

buye

r and

was

sol

d as

con

vent

iona

l pal

m o

il, i.

e. w

ithou

t cap

turin

g a

pric

e pr

emiu

m. A

s fo

r the

diff

eren

t sal

e ch

anne

ls, d

urin

g th

e m

onth

of J

anua

ry 2

018,

the

thr

ee m

etho

ds in

volv

ing

phys

ical

sup

ply

chai

ns –

i.e.

seg

rega

ted,

iden

tity-

pres

erve

d an

d su

pply

-mas

s-ba

lanc

ed tr

ansa

ctio

ns –

acc

ount

ed fo

r 70

perc

ent o

f tot

al s

ales

, whi

le th

e re

mai

ning

30

perc

ent w

ere

mar

kete

d vi

a bo

ok&c

laim

mec

hani

sms

(whi

ch c

ontri

bute

onl

y in

dire

ctly

to s

usta

inab

le p

rodu

ctio

n sy

stem

s). S

uch

dist

ribut

ion

mar

ks

a sl

ight

impr

ovem

ent

over

tim

e, g

iven

tha

t, ba

ck in

Dec

embe

r 20

16, t

he c

orre

spon

ding

sha

res

stoo

d at

65

perc

ent

and

35 p

erce

nt.

5IN

DUST

RY

STAN

DARD

S –

Sust

aina

ble

oil p

alm

Mar

chG

loba

lIn

dust

ry s

ourc

ing

polic

ies

– th

ird-p

arty

ass

essm

ent:

Acc

ordi

ng to

a s

urve

y co

nduc

ted

by G

reen

peac

e, a

num

ber o

f glo

bal

cons

umer

goo

ds c

ompa

nies

dec

lined

to d

iscl

ose

whe

re th

ey s

ourc

e th

eir p

alm

oil f

rom

– d

espi

te c

orpo

rate

ple

dges

to a

chie

ve

100%

trac

eabi

lity

by 2

020

(in s

uppo

rt of

com

mitm

ents

to s

top

buyi

ng fr

om c

ompa

nies

that

app

ly u

nsus

tain

able

pro

duct

ion

met

hods

). In

this

rega

rd, G

reen

peac

e re

new

ed it

s ca

ll fo

r br

ands

to a

ctiv

ely

supp

ort t

he tr

ansf

orm

atio

n of

the

indu

stry

by

sour

cing

onl

y fro

m tr

ader

s/su

pplie

rs a

ble

to p

rove

that

all

the

palm

oil

they

sel

l com

es fr

om p

rodu

cers

ver

ified

as

com

plia

nt

with

‘no

defo

rest

atio

n–no

pea

t–no

exp

loita

tion’

sta

ndar

ds. S

ince

the

publ

icat

ion

of G

reen

peac

e’s

repo

rt, o

ne o

f the

sur

veye

d co

mpa

nies

fully

dis

clos

ed it

s so

urce

s of

sup

ply,

wel

com

ing

the

NG

O’s

requ

est f

or fu

rther

sup

ply

chai

n tra

nspa

renc

y, w

hich

the

com

pany

vie

wed

as

an e

ssen

tial c

ompo

nent

of s

usta

inab

le a

nd re

spon

sibl

e so

urci

ng.

40 Oilcrops complex: Policy changes and industry measures - Annual compendium 2018

No.

Dom

ain

Mon

thC

ount

ryD

escr

iptio

n*6

INDU

STRY

ST

ANDA

RDS

– Su

stai

nabl

e oi

l pal

m

Mar

chM

alay

sia

Cer

tifica

tion

assi

stan

ce: I

n M

alay

sia,

a la

rge

palm

oil p

lant

atio

n co

mpa

ny jo

ined

forc

es w

ith th

e co

untry

’s Pa

lm O

il Cer

tifica

tion

Cou

ncil (

MPO

CC

) to

help

all o

f its

supp

liers

obt

ain

certi

ficat

ion

by th

e en

d of

201

9 – t

he d

ate

by w

hich

all p

rodu

cers

are

requ

ired

to c

ompl

y w

ith th

e na

tiona

l MSP

O (M

alay

sian

Sus

tain

able

Pal

m O

il) st

anda

rd. T

he p

artn

ersh

ip’s

obje

ctiv

e is

to e

ngag

e, s

hare

kn

owle

dge

and

lend

sup

port

to s

uppl

iers

whi

le th

ey p

repa

re fo

r man

dato

ry M

SPO

cer

tifica

tion.

Rep

orte

dly,

mor

e th

an 2

60 m

ill su

pplie

rs a

re g

oing

to b

enefi

t fro

m th

e in

itiat

ive.

7IN

DUST

RY

STAN

DARD

S –

Sust

aina

ble

oil p

alm

April

Ger

man

yR

espo

nsib

le s

ourc

ing

com

mitm

ents

: G

erm

an c

hem

ical

com

pany

BAS

F pl

edge

d th

at, i

n th

e co

urse

of 2

018,

it w

ill off

er

palm

-bas

ed p

rodu

cts

for t

he c

osm

etic

s in

dust

ry e

xclu

sive

ly a

s ce

rtifie

d su

stai

nabl

e. T

he c

ompa

ny e

nvis

ages

to s

ourc

e its

pa

lm a

nd p

alm

kern

el o

il via

the

RSPO

‘Mas

s Ba

lanc

e’ s

tand

ard,

one

of R

SPO

’s su

pply

cha

in m

odel

s th

at s

uppo

rt th

e ph

ysic

al

flow

of c

ertifi

ed ra

w m

ater

ials

. Fur

ther

mor

e, th

e co

mpa

ny in

form

ed th

at, i

n 20

17, i

t man

aged

to tr

ace

alm

ost 8

0 pe

rcen

t of i

ts

over

all o

il pa

lm e

xpos

ure

of m

ore

than

500

000

tonn

es.

8IN

DUST

RY

STAN

DARD

S –

Sust

aina

ble

oil p

alm

April

Glo

bal

RSP

O –

mem

ber

acco

unta

bilit

y:

RSPO

rep

orte

d ne

w e

fforts

to

ensu

re t

hat

grow

er m

embe

rs r

egul

arly

sub

mit

deta

iled

data

rega

rdin

g th

eir c

once

ssio

ns. T

he o

rgan

izatio

n co

nsid

ers

acce

ss to

suc

h in

form

atio

n as

a p

rere

quis

ite fo

r mon

itorin

g its

m

embe

rs’ e

nviro

nmen

tal a

ccou

ntab

ility.

RSPO

inte

nds

to c

ompa

re m

embe

r dat

a w

ith s

atel

lite

imag

es a

nd o

ther

geo

spat

ial

info

rmat

ion

with

a v

iew

to

faci

litat

e tim

ely

asse

ssm

ents

of

pote

ntia

l cas

es o

f en

viro

nmen

tal n

on-c

ompl

ianc

e. R

SPO

als

o in

form

ed th

at it

is w

orki

ng o

n m

eans

to d

eter

min

e w

heth

er p

lant

atio

n ow

ners

man

age

any H

CV

(Hig

h C

onse

rvat

ion

Valu

e) a

reas

eff

ectiv

ely.

Thro

ugh

thes

e m

easu

res,

RSP

O h

opes

to s

treng

then

the

cred

ibilit

y of

its

certi

ficat

ion,

ver

ifica

tion

and

grie

vanc

e sy

stem

s.

9IN

DUST

RY

STAN

DARD

S –

Sust

aina

ble

oil p

alm

April

Indo

nesi

aPe

atla

nd d

evel

opm

ent:

Env

ironm

enta

l adv

ocac

y gro

up R

ainf

ores

t Act

ion

Net

wor

k cla

imed

that

appr

oxim

atel

y 10

000

hect

ares

of

pea

t for

est h

ave

been

cle

ared

ille

gally

in B

orne

o, In

done

sia,

for f

utur

e pa

lm o

il pl

anta

tions

– d

espi

te n

atio

nal r

egul

atio

ns a

s w

ell a

s co

mpa

ny c

omm

itmen

ts a

gain

st fu

rther

pea

t dev

elop

men

t and

def

ores

tatio

n. R

epor

tedl

y, m

ost o

f the

con

cern

ed la

nd

bank

was

mar

ked

as ‘p

eatla

nd p

riorit

ized

for p

rote

ctio

n’ o

n m

aps

prep

ared

by

Indo

nesi

a’s

Peat

Res

tora

tion

Agen

cy.

10IN

DUST

RY

STAN

DARD

S –

Sust

aina

ble

oil p

alm

May

Nig

eria

Nat

iona

l cer

tifica

tion

stan

dard

: Th

e RS

PO in

form

ed th

at it

s Pr

inci

ples

& C

riter

ia h

ave

been

‘int

erpr

eted

’ for

Nig

eria

. Nat

iona

l in

terp

reta

tions

allo

w to

ada

pt th

e ge

nera

l sta

ndar

d to

a c

ount

ry’s

spec

ific

mar

ket c

ondi

tions

and

requ

irem

ents

. The

suc

cess

ful

com

plet

ion

of t

he N

iger

ia N

atio

nal I

nter

pret

atio

n do

cum

ent

is s

een

as a

n im

porta

nt m

ilest

one

for

the

futu

re o

f ce

rtifie

d su

stai

nabl

e pa

lm o

il in

the

regi

on.

11IN

DUST

RY

STAN

DARD

S –

Sust

aina

ble

oil p

alm

June

Glo

bal

RSP

O –

mem

ber s

uspe

nsio

n: R

SPO

, the

indu

stry

-led,

glo

bally

reco

gnize

d pa

lm o

il cer

tifica

tion

body

, dec

ided

to te

mpo

raril

y su

spen

d gl

obal

food

and

drin

ks c

ompa

ny N

estlé

from

its

mem

bers

, citi

ng c

ondu

ct b

reac

hes.

As

a re

sult,

for t

hree

wee

ks th

e co

mpa

ny c

ould

not

cla

im to

use

cer

tified

sus

tain

able

pal

m o

il in

its

prod

ucts

. Rep

orte

dly,

the

com

pany

had

faile

d to

com

ply

with

obl

igat

ions

to s

ubm

it an

nual

repo

rts d

etai

ling

past

act

ions

and

futu

re p

lans

on

how

it w

as e

nsur

ing

the

use

of c

ertifi

ed

sust

aina

ble

palm

oil.

Nes

tlé’s

mem

bers

hip

was

rein

stat

ed a

fter t

he c

ompa

ny s

ubm

itted

a ti

me-

boun

d ac

tion

plan

to a

chie

ve

100%

RSP

O c

ertifi

ed s

usta

inab

le p

alm

oil

by 2

023,

whi

le w

orki

ng a

ctiv

ely

on s

olut

ions

with

in th

e RS

PO s

yste

m. T

he in

cide

nt

led

a nu

mbe

r of c

ivil

soci

ety

grou

ps to

rene

w th

eir c

alls

on

the

RSPO

to s

trict

ly e

nfor

ce it

s st

anda

rds.

Som

e un

derli

ned

that

–

irres

pect

ive

of c

ertifi

catio

n –

all p

alm

oil

end-

user

s ne

eded

to s

tep

up th

eir e

fforts

to p

reve

nt p

alm

oil

linke

d to

uns

usta

inab

le

prac

tices

from

ent

erin

g th

eir s

uppl

y ch

ains

. All

bran

ds w

ere

urge

d to

take

dire

ct re

spon

sibi

lity

for i

dent

ifyin

g th

e pr

oduc

ers

of

thei

r pal

m o

il an

d fo

r ens

urin

g th

at a

ll th

ose

prod

ucer

s ap

ply

sust

aina

ble

prac

tices

.

12IN

DUST

RY

STAN

DARD

S –

Sust

aina

ble

oil p

alm

June

Glo

bal

Res

pons

ible

sou

rcin

g co

mm

itmen

ts:

Glo

bal b

ever

age

com

pany

Pep

siCo

rene

wed

its

com

mitm

ent t

o ex

clus

ivel

y so

urce

su

stai

nabl

y pr

oduc

ed p

alm

oil

by 2

020.

Rep

orte

dly,

the

com

pany

’s an

nual

pur

chas

es o

f pal

m a

nd p

alm

kern

el o

il am

ount

to

arou

nd 4

50 0

00 to

nnes

. The

com

pany

repo

rted

that

50

perc

ent o

f its

pal

m o

il su

pply

is o

n tra

ck to

be

RSPO

-cer

tified

by

the

end

of 2

018.

Oilcrops complex: Policy changes and industry measures - Annual compendium 2018 41

No.

Dom

ain

Mon

thC

ount

ryD

escr

iptio

n*13

INDU

STRY

ST

ANDA

RDS

– Su

stai

nabl

e oi

l pal

m

June

Sout

heas

t As

iaIn

dust

ry c

omm

itmen

ts –

thi

rd-p

arty

ass

essm

ent:

A r

epor

t re

leas

ed b

y an

env

ironm

enta

l adv

ocac

y gr

oup,

cla

ims

that

a

num

ber

of p

alm

oil

firm

s op

erat

ing

in In

done

sia,

Mal

aysi

a an

d Pa

pua

New

Gui

nea

use

uncl

ear

corp

orat

e st

ruct

ures

to

conc

eal t

heir

ties

to u

nsus

tain

able

pro

duct

ion

prac

tices

suc

h as

rain

fore

st a

nd p

eatla

nd c

lear

ance

. Alle

gedl

y, su

ch p

ract

ices

al

low

gro

wer

s to

con

tinue

usi

ng h

arm

ful p

rodu

ctio

n m

etho

ds, w

hile

stil

l mar

ketin

g th

eir p

rodu

cts

thro

ugh

com

pani

es th

at a

re

com

mitt

ed to

‘No

Defo

rest

atio

n–N

o Pe

at–N

o Ex

ploi

tatio

n’ s

ourc

ing

polic

ies.

On

a si

mila

r not

e, a

gro

up o

f env

ironm

enta

l NG

Os

clai

med

that

pal

m o

il sou

rced

from

ille

gally

cle

ared

rain

fore

st a

reas

in In

done

sia

has

flow

n th

roug

h tra

ders

to m

ajor

con

sum

er

good

bra

nds,

des

pite

wid

espr

ead

com

pany

com

mitm

ents

to p

urch

ase

excl

usiv

ely

sust

aina

bly

prod

uced

oil.

14IN

DUST

RY

STAN

DARD

S –

Sust

aina

ble

oil p

alm

June

Sout

heas

t As

ia, g

loba

lIn

dust

ry s

ourc

ing

polic

ies:

Th

e m

edia

rep

orte

d th

at G

olde

n Ag

ri-Re

sour

ces,

one

of

the

larg

est

palm

oil

com

pani

es in

So

uthe

ast A

sia,

is te

stin

g ne

w G

PS-b

ased

tech

nolo

gies

to e

stab

lish

trace

abilit

y fo

r the

pal

m o

il it

sour

ces

from

third

-par

ty

mills

in In

done

sia.

Rep

orte

dly,

60 p

erce

nt o

f the

com

pany

’s su

pplie

s co

me

from

mor

e th

an 4

00 th

ird-p

arty

mills

who

in tu

rn

buy

thei

r pal

m fr

uit f

rom

thou

sand

s of

gro

wer

s. T

he c

ompa

ny a

ckno

wle

dged

that

the

trace

abilit

y st

anda

rds

it ap

plie

s to

its

own

mills

are

diffi

cult

to e

xten

d to

the

othe

r sup

plie

rs, o

ne o

f the

mai

n re

ason

s be

ing

the

‘unr

egul

ated

nat

ure’

of t

he m

iddl

emen

w

ho b

uy p

alm

frui

t fro

m fa

rmer

s to

sel

l it t

o m

ills. R

epor

tedl

y, th

e fa

ct th

at fa

rmer

s ar

e fre

e to

sel

l to

any

inte

rmed

iary

mak

es

traci

ng th

e pr

oven

ance

of i

ndiv

idua

l bat

ches

of p

alm

frui

t ver

y ch

alle

ngin

g. F

urth

erm

ore,

it is

not

feas

ible

to o

btai

n as

sura

nces

fro

m m

iddl

emen

that

they

exc

lusi

vely

buy

from

ver

ified

sus

tain

able

pla

ntat

ions

. Sim

ilarly

, glo

bal a

grib

usin

ess

firm

Car

gill

has

ente

red

into

a p

artn

ersh

ip w

ith th

e W

orld

Res

ourc

es In

stitu

te to

test

the

inst

itute

’s sa

tellit

e m

appi

ng to

ol c

alle

d G

loba

l For

est

Wat

ch P

ro. R

epor

tedl

y, th

e de

vice

cou

ld a

llow

man

agem

ent t

o tra

ck is

sues

all a

long

the

com

pany

’s su

pply

cha

in a

nd a

ddre

ss

conc

erns

in lin

e w

ith it

s gr

ieva

nce

proc

edur

e. C

argi

ll’s s

uppl

y ch

ain

is s

aid

to re

ly o

n 11

com

pany

-ow

ned

mills

and

ove

r 1 5

00

third

-par

ty m

ills. C

urre

ntly,

the

com

pany

app

ears

to a

ttach

gre

ater

impo

rtanc

e to

ach

ievi

ng fu

ll tra

ceab

ility

than

to o

btai

ning

10

0% R

SPO

-cer

tifica

tion.

15IN

DUST

RY

STAN

DARD

S –

Sust

aina

ble

oil p

alm

July

Braz

ilG

over

nmen

t po

licie

s –

third

-par

ty im

pact

ass

essm

ent:

In 2

010,

Bra

zil’s

Fede

ral G

over

nmen

t lau

nche

d th

e Su

stai

nabl

e Pa

lm O

il Pr

oduc

tion

Prog

ram

(SPO

PP),

whi

ch, i

nter

alia

, was

aim

ed a

t enc

oura

ging

pro

duce

rs in

Leg

al A

maz

onia

to e

xpan

d oi

l pal

m c

ultiv

atio

n w

ithou

t cle

arin

g pr

imar

y or

sec

onda

ry fo

rest

, usi

ng a

lread

y cl

eare

d, d

egra

ded

land

inst

ead.

Acc

ordi

ng to

a

rece

ntly

pub

lishe

d st

udy,

durin

g th

e 20

06-2

014

perio

d, in

Par

á St

ate

(whe

re c

omm

erci

al p

alm

oil

culti

vatio

n in

the

Amaz

on

Basi

n is

con

cent

rate

d), 9

1 pe

rcen

t of p

rodu

ctio

n ex

pans

ion

has

occu

rred

on fo

rmer

pas

ture

land

, not

fore

st, a

nd th

e di

rect

co

nver

sion

of

inta

ct f

ores

ts is

rep

orte

d to

hav

e de

clin

ed s

ince

the

ince

ptio

n of

SPO

PP. H

owev

er, r

efer

ring

to a

pos

sibl

e ac

cele

ratio

n in

oil

palm

exp

ansi

on in

the

nea

r fu

ture

, the

res

earc

hers

war

ned

that

pre

ssur

e to

def

ores

t co

uld

incr

ease

. In

parti

cula

r, th

e st

udy

poin

ts o

ut th

at S

POPP

lack

s th

e m

eans

to p

reve

nt ‘i

ndire

ct d

efor

esta

tion’

, tha

t is

the

clea

ring

of ra

info

rest

fo

r gra

zing

purp

oses

, fol

low

ed b

y co

nver

sion

into

pla

ntat

ions

.

16IN

DUST

RY

STAN

DARD

S –

Sust

aina

ble

oil p

alm

July

Chi

naN

atio

nal i

ndus

try

allia

nce:

The

RSP

O, t

he C

hine

se C

ham

ber o

f Com

mer

ce o

f Foo

dstu

ffs a

nd N

ativ

e Pr

oduc

e (F

FNA)

and

the

Wor

ld W

ildlif

e Fu

nd (W

WF)

join

tly la

unch

ed th

e C

hina

Sus

tain

able

Pal

m O

il Allia

nce

to c

reat

e a

plat

form

for c

oope

ratio

n am

ong

stak

ehol

ders

in th

e pa

lm o

il su

pply

cha

in a

nd p

rom

otin

g su

stai

nabl

e pa

lm o

il in

Chi

na (s

ee a

lso M

PPU

May

’18)

. Rep

orte

dly,

a nu

mbe

r of k

ey p

laye

rs in

Chi

na’s

supp

ly c

hain

ple

dged

to p

rom

ote

the

adop

tion

of c

ertifi

ed s

usta

inab

le p

alm

oil i

n th

e do

mes

tic

mar

ket.

Alth

ough

Chi

na is

the

wor

ld’s

third

-larg

est i

mpo

rter a

nd fo

urth

-larg

est c

onsu

mer

of p

alm

oil,

cer

tified

pal

m o

il on

ly

acco

unts

for a

sm

all s

hare

of t

he d

omes

tic m

arke

t. H

owev

er, t

he R

SPO

sai

d it

notic

ed a

ver

y po

sitiv

e m

omen

tum

tow

ards

its

targ

et to

ach

ieve

a 1

0% m

arke

t sha

re b

y 20

20. R

epor

tedl

y, C

hine

se m

embe

rshi

p in

the

body

has

sur

ged

in th

e pa

st fe

w y

ears

.

17IN

DUST

RY

STAN

DARD

S –

Sust

aina

ble

oil p

alm

July

Gha

naR

SPO

– s

mal

lhol

der s

uppo

rt: T

he R

SPO

has

set

up

– jo

intly

with

the

Farm

ers

Asso

ciat

ion

of G

hana

– a

nat

iona

l pla

tform

to

faci

litat

e co

llabo

ratio

n be

twee

n po

tent

ial p

roje

ct p

artn

ers

or m

arke

t pla

yers

and

inde

pend

ent s

mal

lhol

der o

il pa

lm fa

rmer

s.

The

initi

ativ

e is

aim

ed a

t en

ablin

g m

ore

smal

lhol

ders

to

enga

ge in

mod

ern,

sus

tain

able

sup

ply

chai

ns, i

nclu

ding

pro

duct

ce

rtific

atio

n. T

he a

vera

ge y

ield

leve

l of s

mal

lhol

der p

rodu

cers

is e

stim

ated

to b

e w

ell b

elow

pot

entia

l, du

e to

poo

r agr

onom

y, lim

ited

use

of fe

rtiliz

er a

nd lo

w-y

ield

ing

plan

ting

mat

eria

l. Th

e pl

atfo

rm h

as b

een

crea

ted

to e

ncou

rage

mille

rs, g

over

nmen

t ag

enci

es, N

GO

s an

d ot

her d

evel

opm

ent p

artn

ers

to p

rovi

de th

e re

quire

d tra

inin

g an

d ex

tens

ion

assi

stan

ce to

sm

all g

row

ers.

Re

porte

dly,

Gha

na’s

smal

lhol

ders

pro

vide

mor

e th

an 7

0 pe

rcen

t of t

he p

alm

frui

t pro

cess

ed in

the

coun

try.

42 Oilcrops complex: Policy changes and industry measures - Annual compendium 2018

No.

Dom

ain

Mon

thC

ount

ryD

escr

iptio

n*18

INDU

STRY

ST

ANDA

RDS

– Su

stai

nabl

e oi

l pal

m

July

Indi

aR

espo

nsib

le s

ourc

ing

com

mitm

ents

: 3F

Indu

strie

s, a

n In

dian

com

pany

ope

ratin

g in

the

edib

le o

il im

ports

and

pro

duct

ion

sect

or p

ledg

ed to

pro

cure

cer

tified

pal

m o

il and

its d

eriv

ativ

es, t

he R

SPO

info

rmed

. The

com

pany

als

o co

mm

itted

to p

roac

tivel

y cr

eate

aw

aren

ess

abou

t sus

tain

ably

pro

duce

d pa

lm o

il am

ong

Indi

an b

usin

esse

s an

d co

nsum

ers.

Rep

orte

dly,

the

firm

impo

rts,

prod

uces

and

pro

cess

es a

bout

200

000

tonn

es o

f pal

m o

il pr

oduc

ts p

er y

ear.

19IN

DUST

RY

STAN

DARD

S –

Sust

aina

ble

oil p

alm

July

Indo

nesi

aR

SPO

cer

tifica

tion

– th

ird-p

arty

im

pact

ass

essm

ent:

The

effe

ctiv

enes

s of

exi

stin

g ce

rtific

atio

n sc

hem

es a

nd r

elat

ed

initi

ativ

es in

furth

erin

g su

stai

nabl

e pa

lm o

il pr

oduc

tion

rem

ains

und

er p

ublic

scr

utin

y (s

ee a

lso M

PPU

Jan

.’18)

. Acc

ordi

ng

to n

ews

med

ia, a

new

stu

dy u

nder

take

n to

ass

ess

how

effe

ctiv

e th

e RS

PO h

as b

een

in a

chie

ving

its

sust

aina

bilit

y go

als

by

com

parin

g ce

rtifie

d an

d no

n-ce

rtifie

d co

nces

sion

s in

Kal

iman

tan,

Indo

nesi

a, c

laim

s th

at n

o si

gnifi

cant

diff

eren

ces

wer

e fo

und

betw

een

the

two

type

s of

pla

ntat

ions

for m

ost o

f the

sus

tain

abilit

y m

etric

s in

vest

igat

ed. T

he fi

ndin

gs a

re n

otab

le, g

iven

that

th

e RS

PO –

than

ks to

its

com

preh

ensi

ve s

et o

f req

uire

men

ts –

is g

ener

ally

rega

rded

as

the

lead

ing

certi

ficat

ion

sche

me

for

palm

oil.

Rep

orte

dly,

the

RSPO

cal

led

into

que

stio

n th

e va

lidity

of t

he s

tudy

’s fin

ding

s, c

iting

am

ple

evid

ence

in in

depe

nden

t as

sess

men

ts s

how

ing

the

posi

tive

impa

ct o

f its

cer

tifica

tion

activ

ities

. Rec

ogni

zing

that

man

y ar

eas

for i

mpr

ovem

ent r

emai

n,

the

body

info

rmed

that

it h

ad c

omm

issi

oned

stu

dies

to d

eter

min

e th

e ac

tual

per

form

ance

of i

ts c

ertifi

catio

n sc

hem

e ag

ains

t its

sta

ted

stan

dard

s.

20IN

DUST

RY

STAN

DARD

S –

Sust

aina

ble

oil p

alm

July

Indo

nesi

a,

Indi

aC

ross

-bor

der i

ndus

try

allia

nce:

Priv

ate

sect

or a

nd c

ivil s

ocie

ty g

roup

s in

Indi

a an

d In

done

sia

have

join

ed fo

rces

to p

rom

ote

the

prod

uctio

n an

d tra

de o

f sus

tain

ably

pro

duce

d pa

lm o

il. R

ecog

nizin

g In

done

sia’

s sta

te-b

acke

d na

tiona

l cer

tifica

tion

sche

me,

In

done

sian

Sus

tain

able

Pal

m O

il (IS

PO),

and

the

Indi

an P

alm

Oil

Sust

aina

bilit

y Fr

amew

ork

(IPO

S) a

s ce

ntra

l sus

tain

abilit

y in

itiat

ives

, the

initi

ativ

e is

aim

ed a

t exp

andi

ng th

e m

arke

t for

sus

tain

ably

pro

duce

d pa

lm o

il in

the

two

coun

tries

and

in th

e re

gion

as

a w

hole

. Priv

ate

sect

or r

epre

sent

ativ

es f

rom

bot

h co

untri

es p

ledg

ed t

o w

ork

toge

ther

to

redu

ce t

rade

bar

riers

an

d pr

otec

t the

com

petit

iven

ess

of th

e pa

lm o

il in

dust

ry. I

n pa

rticu

lar,

the

partn

ers

envi

sage

to c

ondu

ct p

ublic

aw

aren

ess

cam

paig

ns. O

ffici

als

from

the

Indo

nesi

an G

over

nmen

t, w

hich

has

bac

ked

the

initi

ativ

e, h

ave

been

quo

ted

as s

ayin

g th

at th

e pr

ojec

t oug

ht to

add

ress

the

Indi

an c

onsu

mer

s’ m

isco

ncep

tion

that

pal

m o

il is

of i

nfer

ior q

ualit

y be

caus

e it

cost

s le

ss th

an

othe

r oils

. Ind

ia is

the

wor

ld’s

larg

est i

mpo

rter a

nd s

econ

d-la

rges

t con

sum

er o

f pal

m o

il. C

onsi

derin

g In

dia’

s w

eigh

t in

the

glob

al p

alm

oil

mar

ket,

the

WW

F re

cent

ly h

ighl

ight

ed th

e cr

itica

l rol

e In

dian

com

pani

es c

ould

pla

y in

pro

mot

ing

sust

aina

ble

prod

uctio

n pr

actic

es in

the

coun

tries

whe

re o

il pa

lm is

cul

tivat

ed (s

ee M

PPU

Oct

.’17)

.

21IN

DUST

RY

STAN

DARD

S –

Sust

aina

ble

oil p

alm

July

Libe

riaR

SPO

– m

embe

r with

draw

al: A

larg

e oi

l pal

m c

ompa

ny b

ased

in L

iber

ia d

ecid

ed to

volu

ntar

y with

draw

its R

SPO

mem

bers

hip.

Re

porte

dly,

RSPO

had

file

d a

num

ber o

f com

plai

nts

agai

nst t

he c

ompa

ny c

once

rnin

g th

e cl

eara

nce

of la

nd w

ithou

t the

free

, pr

ior a

nd in

form

ed c

onse

nt (F

PIC

) of c

usto

mar

y la

nd o

wne

rs. A

t the

sam

e tim

e, th

e co

mpa

ny p

rese

nted

a n

ew a

ctio

n pl

an to

st

reng

then

and

rest

ore

confi

denc

e in

its

sust

aina

bilit

y cr

eden

tials

. Rep

orte

dly,

the

plan

is ti

me-

boun

d, e

ncom

pass

es s

ocia

l an

d en

viro

nmen

tal c

ompo

nent

s, a

nd w

ill be

impl

emen

ted

with

the

supp

ort o

f ind

epen

dent

par

tner

s in

clud

ing

the

NG

O T

he

Fore

st T

rust

.

22IN

DUST

RY

STAN

DARD

S –

Sust

aina

ble

oil p

alm

July

Mal

aysi

aC

ertifi

catio

n as

sist

ance

: In

Mal

aysi

a, a

larg

e pa

lm o

il co

mpa

ny h

as d

evel

oped

an

on-li

ne re

porti

ng to

ol to

hel

p su

pplie

rs

mee

t the

MSP

O n

atio

nal c

ertifi

catio

n cr

iteria

. Rep

orte

dly,

the

tool

allo

ws

supp

liers

to a

sses

s th

eir p

erfo

rman

ce b

ased

on

both

M

SPO

requ

irem

ents

and

the

com

pany

’s ow

n ‘n

o de

fore

stat

ion–

no p

eat–

no e

xplo

itatio

n’ p

olic

ies.

The

tool

was

dev

elop

ed in

co

llabo

ratio

n w

ith th

e M

alay

sian

Pal

m O

il C

ertifi

catio

n C

ounc

il, M

POC

C. (

See

also

MPP

U M

ay’1

8)

23IN

DUST

RY

STAN

DARD

S –

Sust

aina

ble

oil p

alm

Augu

stC

hina

, Ec

uado

rIn

dust

ry s

ourc

ing

polic

ies:

A C

hine

se a

nd a

n Ec

uado

rian

food

com

pany

pio

neer

ed th

e m

arke

ting

of R

SPO

-cer

tified

pal

m

oil i

n th

eir r

espe

ctiv

e co

untri

es. A

llege

dly,

the

com

pani

es, w

hich

com

mitt

ed to

sou

rcin

g 10

0% R

SPO

-cer

tified

pal

m o

il an

d us

ing

the

RSPO

trad

emar

k on

thei

r pro

duct

pac

kagi

ng, r

epor

ted

posi

tive

resu

lts, w

hich

, acc

ordi

ng to

RSP

O, i

ndic

ates

that

su

stai

nabi

lity

is b

ecom

ing

a fa

ctor

in c

onsu

mer

pur

chas

es in

thos

e m

arke

ts.

Oilcrops complex: Policy changes and industry measures - Annual compendium 2018 43

No.

Dom

ain

Mon

thC

ount

ryD

escr

iptio

n*24

INDU

STRY

ST

ANDA

RDS

– Su

stai

nabl

e oi

l pal

m

Augu

stG

loba

lR

SPO

sta

ndar

ds –

inte

rnal

& th

ird p

arty

eva

luat

ion:

The

pal

m o

il se

ctor

’s hi

stor

y of

env

ironm

enta

l and

soc

ial i

mpa

cts

has

com

e un

der u

npre

cede

nted

pub

lic s

crut

iny

in re

cent

yea

rs a

nd is

attr

actin

g th

e at

tent

ion

of in

tern

atio

nal m

edia

and

pol

icy

mak

ers.

In th

is c

onte

xt, R

SPO

, the

glo

bally

reco

gnize

d, v

olun

tary

pal

m o

il ce

rtific

atio

n pr

ogra

mm

e ha

s co

me

unde

r pre

ssur

e to

stre

ngth

en it

s st

anda

rds

on s

usta

inab

le p

alm

oil

prod

uctio

n. T

he b

ody

is c

urre

ntly

eng

aged

in a

revi

ew o

f its

prin

cipl

es

and

crite

ria a

nd r

emai

ns c

omm

itted

to

rele

ase

revi

sed

stan

dard

s fo

r 20

19-2

023

befo

re t

he e

nd o

f th

e ye

ar.

Repo

rtedl

y, pu

blic

con

sulta

tions

hav

e so

far r

esul

ted

in m

ore

than

10

000

com

men

ts. R

SPO

is c

hara

cter

ized

by a

div

erse

mem

bers

hip

com

pris

ing

prod

ucer

s (b

oth

larg

e pl

anta

tion

com

pani

es a

nd s

mal

lhol

ders

), m

ills,

trade

rs,

cons

umer

s, a

dvoc

acy

grou

ps,

bank

s an

d in

vest

ors

– i.e

. gro

ups

with

diff

erin

g an

d of

ten

diffi

cult

to re

conc

ile in

tere

sts.

As

a re

sult,

the

body

nee

ds to

find

a

bala

nce

betw

een

mak

ing

sust

aina

ble

prod

uctio

n m

anda

tory

and

min

imizi

ng n

egat

ive

effec

ts o

n ru

ral d

evel

opm

ent a

nd p

over

ty

alle

viat

ion,

as

poin

ted

out b

y a

civi

l soc

iety

gro

up. M

arke

t exp

erts

cau

tione

d th

at if

the

body

doe

s no

t suc

ceed

in im

posi

ng

stric

ter p

rodu

ctio

n st

anda

rds,

buy

ers

coul

d be

forc

ed to

look

for a

ltern

ativ

e w

ays

of m

onito

ring

thei

r sup

ply

chai

ns to

mee

t th

eir ‘

no d

efor

esta

tion–

no p

eatla

nd–n

o ex

ploi

tatio

n’ p

ledg

es, w

hich

wou

ld b

e co

stly

and

tim

e-co

nsum

ing,

in a

dditi

on to

rais

ing

cred

ibilit

y is

sues

. On

the

sam

e su

bjec

t, a

grou

p of

inst

itutio

nal i

nves

tors

has

cal

led

on R

SPO

to s

treng

then

its

stan

dard

s,

incl

udin

g by

ban

ning

all

form

s of

def

ores

tatio

n an

d ad

optin

g st

ricte

r rul

es re

gard

ing

carb

on-r

ich

peat

land

, pes

ticid

e us

e an

d w

orke

rs’ r

ight

s. F

urth

erm

ore,

rega

rdin

g th

e rig

ht to

‘fre

e, p

rior a

nd in

form

ed c

onse

nt’ o

f loc

al c

omm

uniti

es, i

nves

tors

cal

led

for

addi

tiona

l dire

ctio

n on

pro

tect

ions

for

hum

an r

ight

s de

fend

ers.

Mor

eove

r, RS

PO s

houl

d re

quire

com

pani

es to

dis

clos

e co

nces

sion

map

s in

dig

ital f

orm

at a

nd to

sub

mit

man

agem

ent p

lans

for t

he c

onse

rvat

ion

of fo

rest

s w

ithin

thei

r con

cess

ions

. Th

e in

vest

ors

also

und

erlin

ed th

e im

porta

nce

of a

robu

st a

ccou

ntab

ility

syst

em a

nd a

n ex

pedi

ent a

nd c

redi

ble

com

plai

nts

and

sanc

tions

mec

hani

sm. C

oord

inat

ed b

y so

cial

soc

iety

gro

up C

eres

, the

inve

stor

s’ in

itiat

ive

was

mea

nt a

s an

inpu

t to

the

on-

goin

g re

view

of t

he R

SPO

’s pr

inci

ples

and

crit

eria

.

25IN

DUST

RY

STAN

DARD

S –

Sust

aina

ble

oil p

alm

Augu

stIn

done

sia

Peat

land

fire

out

brea

ks:

Priv

ate

med

ia re

porte

d th

at, a

fter t

wo

rela

tivel

y fir

e-fre

e dr

y se

ason

s, fi

res

on p

eatla

nd (a

nd th

e re

sulti

ng h

aze

prob

lem

s) h

ave

retu

rned

on

Indo

nesi

a’s

Born

eo a

nd S

umat

ra is

land

s –

desp

ite w

ide-

rang

ing

prog

ram

mes

en

acte

d by

the

Gov

ernm

ent t

o re

stor

e pe

atla

nd fo

llow

ing

the

heav

y fir

es o

f 201

5 (s

ee M

PPU

Feb

.’16

& M

ar.’1

8). R

epor

tedl

y, th

e ne

w fi

res

deve

lope

d bo

th o

n sm

allh

olde

r far

ms

and

in c

once

ssio

ns o

f lar

ge c

ompa

nies

and

in s

ome

inst

ance

s in

clud

e ar

eas

that

had

bee

n pr

iorit

ized

for p

eat p

rote

ctio

n an

d pe

at re

stor

atio

n ac

tiviti

es.

26IN

DUST

RY

STAN

DARD

S –

Sust

aina

ble

oil p

alm

Sept

embe

rG

loba

lIn

dust

ry s

ourc

ing

polic

ies:

Glo

bal b

ever

age

com

pany

Pep

siCo

has

susp

ende

d its

pal

m o

il pu

rcha

ses

from

an

Indo

nesi

an

palm

oil

prod

ucer

ove

r alle

gatio

ns th

at th

e la

tter b

reac

hed

labo

ur a

nd h

uman

righ

ts, i

nclu

ding

chi

ld la

bour

, ins

uffici

ent p

ay,

and

safe

ty b

reac

hes.

Rep

orte

dly,

Peps

iCo

has

take

n st

eps

to e

nsur

e th

at n

one

of it

s di

rect

sup

plie

rs s

ourc

e pa

lm o

il fro

m th

e co

ncer

ned

prod

ucer

, who

, in

turn

, sta

ted

that

he

com

plie

d fu

lly w

ith th

e RS

PO c

ompl

aint

s pa

nel p

roce

ss a

nd th

at h

is e

stat

es

and

mills

ope

rate

in c

onfo

rmity

with

all

rele

vant

Indo

nesi

an la

ws

and

RSPO

(Rou

ndta

ble

on S

usta

inab

le P

alm

Oil)

crite

ria. O

n th

e sa

me

subj

ect,

glob

al fo

ods

and

drin

ks c

ompa

ny N

estlé

info

rmed

that

it w

ould

acc

eler

ate

its ‘n

o de

fore

stat

ion’

com

mitm

ent

by im

plem

entin

g 10

0% s

atel

lite

mon

itorin

g co

vera

ge o

f its

oil

supp

ly c

hain

wor

ldw

ide.

Rep

orte

dly,

the

com

pany

wou

ld re

ly

on a

ser

vice

dev

elop

ed b

y Ai

rbus

and

The

For

est T

rust

as

a gl

obal

ver

ifica

tion

syst

em e

vide

ncin

g, in

alm

ost r

eal-t

ime,

whe

re

defo

rest

atio

n ta

kes

plac

e. B

y en

d of

the

year

, all

of th

e la

nd s

uppl

ying

Nes

tlé w

ith p

alm

oil

is e

xpec

ted

to b

e co

vere

d by

the

syst

em. F

urth

erm

ore,

a la

rge

Mal

aysi

an p

alm

oil

prod

ucer

and

ole

oche

mic

als

firm

that

is a

lso

activ

e in

Indo

nesi

a an

d Li

beria

co

mm

itted

to s

treng

then

its

polic

ies

on s

uppl

y tra

ceab

ility,

zero

-def

ores

tatio

n, p

eatla

nd p

rote

ctio

n, w

orke

rs’ r

ight

s an

d sa

fety

an

d he

alth

at t

he w

orkp

lace

, add

ing

that

it w

ould

rele

ase

an a

ctio

n pl

an to

ens

ure

com

plia

nce

by th

e en

d of

the

year

.

27IN

DUST

RY

STAN

DARD

S –

Sust

aina

ble

oil p

alm

Sept

embe

rG

loba

lLo

cal R

SPO

cer

tifica

tion

agen

ts:

RSPO

hel

d a

wor

ksho

p fo

r acc

redi

ted

certi

ficat

ion

bodi

es (C

Bs) a

imed

to a

lign

its p

artn

ers’

in

terp

reta

tion

and

unde

rsta

ndin

g of

RSP

O s

tand

ards

and

pro

cedu

res.

Par

ticip

atin

g C

Bs o

rigin

ated

from

Mal

aysi

a, In

done

sia,

Th

aila

nd a

nd A

frica

.

28IN

DUST

RY

STAN

DARD

S –

Sust

aina

ble

oil p

alm

Sept

embe

rG

loba

lR

SPO

– G

HG

em

issi

on s

avin

gs:

A RS

PO-c

omm

issi

oned

stu

dy fo

cusi

ng o

n pl

anta

tions

est

ablis

hed

acco

rdin

g to

the

body

’s re

com

men

ded

plan

ting

met

hods

(or

New

Pla

ntat

ion

Proc

edur

es,

NPP

) cl

aim

s th

at t

he a

void

ance

of

land

cle

aran

ce a

nd

peat

land

con

vers

ion,

toge

ther

with

car

bon

diox

ide

sequ

estra

tion

from

set

-asi

de c

onse

rvat

ion

area

s, c

an le

ad to

a d

rast

ic

redu

ctio

n of

GH

G e

mis

sion

leve

ls in

pla

ntat

ions

.

44 Oilcrops complex: Policy changes and industry measures - Annual compendium 2018

No.

Dom

ain

Mon

thC

ount

ryD

escr

iptio

n*29

INDU

STRY

ST

ANDA

RDS

– Su

stai

nabl

e oi

l pal

m

Sept

embe

rG

loba

lR

SPO

– p

rote

ctio

n of

hum

an ri

ghts

def

ende

rs:

RSPO

ado

pted

a n

ew p

olic

y on

hum

an ri

ghts

def

ende

rs, w

hist

le-b

low

ers,

co

mpl

aina

nts

and

com

mun

ity s

poke

sper

sons

. Und

er t

he n

ew p

olic

y, th

e lis

ted

grou

ps o

f pe

rson

s ca

n lo

dge

confi

dent

ial

com

plai

nts

with

the

body

’s co

mpl

aint

s pa

nel c

once

rnin

g ac

tiviti

es u

nder

take

n by

RSP

O m

embe

rs th

at m

ay u

nder

min

e th

e sa

fety

or s

ecur

ity o

f the

sai

d in

divi

dual

s.

30IN

DUST

RY

STAN

DARD

S –

Sust

aina

ble

oil p

alm

Sept

embe

rG

loba

lTh

ird-p

arty

indu

stry

rev

iew

: In

a n

ew re

port,

env

ironm

enta

l adv

ocac

y gr

oup

Gre

enpe

ace

clai

ms

that

def

ores

tatio

n-lin

ked

palm

oil

cont

inue

d fin

ding

s its

way

into

glo

bal c

onsu

mer

bra

nds.

Alle

gedl

y, le

adin

g co

nsum

er g

ood

firm

s, c

omm

odity

trad

ers

and

palm

oil

com

pani

es c

onfo

rm o

nly

in p

art t

o th

eir o

wn

zero

-def

ores

tatio

n an

d hu

man

righ

ts p

rote

ctio

n pl

edge

s an

d ris

k no

t mee

ting

thei

r sel

f-im

pose

d 20

20 d

eadl

ines

. Gre

enpe

ace

calle

d on

con

sum

er b

rand

s to

sto

p bu

ying

pal

m o

il fro

m tr

ader

s an

d pr

oduc

ers

asso

ciat

ed w

ith d

efor

esta

tion

until

the

se m

anag

e to

effe

ctiv

ely

mon

itor

thei

r co

mpl

ex s

uppl

y ch

ains

. Th

e or

gani

zatio

n al

so u

nder

lined

the

impo

rtanc

e of

pub

lic tr

ansp

aren

cy, s

take

hold

er e

ngag

emen

t and

inde

pend

ent c

ompl

ianc

e ve

rifica

tion.

Mor

eove

r, th

e ci

rcum

stan

ce th

at, i

n ad

ditio

n to

rely

ing

on th

eir o

wn

plan

tatio

ns, l

arge

trad

ers

buy

from

man

y ot

her

supp

liers

– w

hose

ope

ratio

ns fa

ll out

side

thei

r dire

ct c

ontro

l – re

pres

ents

one

of m

ain

chal

leng

es fa

cing

the

indu

stry

, acc

ordi

ng

to G

reen

peac

e.

31IN

DUST

RY

STAN

DARD

S –

Sust

aina

ble

oil p

alm

Sept

embe

rIn

done

sia

Third

-par

ty in

dust

ry r

evie

w:

The

Indo

nesi

a-ba

sed

Cen

ter

for

Inte

rnat

iona

l For

estry

Res

earc

h (C

IFO

R), h

as p

ublis

hed

a st

udy

that

ana

lyse

s ho

w th

ree

poss

ible

sce

nario

s fo

r fu

ture

oil

palm

dev

elop

men

t wou

ld a

ffect

Indo

nesi

a’s

Born

eo is

land

. Th

e sc

enar

ios

cons

ider

ed fo

rese

e i)

busi

ness

as

usua

l, ii)

stric

t con

serv

atio

n pl

ans,

or i

ii) ex

pans

ion

guid

ed b

y su

stai

nabl

e ar

ea in

tens

ifica

tion.

The

latte

r sce

nario

env

isio

ns th

at p

lant

atio

ns a

re o

nly

expa

nded

on

suita

ble

area

s, w

hile

yie

lds

are

lifte

d to

abo

ut 5

tonn

es o

f cru

de p

alm

oil

per h

ecta

re th

roug

h im

prov

ed c

ultiv

ars

and

inte

nsiv

e m

anag

emen

t met

hods

. The

stu

dy

look

s at

how

car

bon

stor

age,

hab

itat q

ualit

y, w

ater

yie

ld a

nd p

alm

oil/

timbe

r pro

duct

ion

are

affec

ted

unde

r eac

h sc

enar

io.

One

of t

he s

tudy

’s m

ain

conc

lusi

ons

is th

at –

by

prot

ectin

g re

mai

ning

fore

sts,

con

verti

ng o

nly

degr

aded

and

non

-fore

sted

la

nd, a

nd im

plem

entin

g cr

op-e

nhan

cem

ents

– In

done

sia

coul

d pr

eser

ve th

e ec

onom

ic v

alue

of i

ts la

nd w

hile

stil

l mee

ting

futu

re d

eman

ds fo

r pal

m o

il. M

oreo

ver,

mor

e de

taile

d st

udie

s at

the

villa

ge a

nd h

ouse

hold

leve

l are

reco

mm

ende

d to

bet

ter

unde

rsta

nd th

e im

pact

s of

oil

palm

exp

ansi

on o

n lo

cal c

omm

uniti

es a

nd th

e en

viro

nmen

t.

32IN

DUST

RY

STAN

DARD

S –

Sust

aina

ble

oil p

alm

Sept

embe

rM

alay

sia

Cer

tifica

tion

assi

stan

ce:

Glo

bal c

onsu

mer

goo

ds c

ompa

ny U

nile

ver p

ledg

ed to

fost

er s

uppo

rt w

ork

in S

abah

sta

te, M

alay

sia

by a

idin

g in

the

rest

orat

ion

of w

ildlif

e ha

bita

ts a

nd h

elpi

ng 6

0 00

0 he

ctar

es o

f sm

allh

olde

r oil

palm

pla

ntat

ions

ach

ieve

RSP

O

certi

ficat

ion.

The

initi

ativ

e su

ppor

ts th

e st

ate’

s ju

risdi

ctio

nal a

ppro

ach

to c

ertifi

catio

n (s

ee M

PPU

Dec

.’17)

.

33IN

DUST

RY

STAN

DARD

S –

Sust

aina

ble

oil p

alm

Sept

embe

rSr

i Lan

kaN

atio

nal i

ndus

try

allia

nce:

With

a v

iew

to p

rom

ote

com

mon

inte

rest

s an

d ad

voca

te s

usta

inab

le g

row

th th

roug

h re

spon

sibl

e pr

oduc

tion,

sta

keho

lder

s in

the

coun

try’s

oil p

alm

val

ue c

hain

hav

e se

t up

the

Palm

Oil I

ndus

try A

ssoc

iatio

n. T

he n

ew b

ody

will

focu

s on

mea

sure

s to

pro

tect

the

imag

e of

pal

m o

il an

d in

tend

s to

wor

k cl

osel

y w

ith th

e G

over

nmen

t and

indu

stry

exp

erts

to

addr

ess

conc

erns

rais

ed b

y th

e co

untry

’s C

entra

l Env

ironm

ent A

utho

rity

rega

rdin

g th

e ad

optio

n of

goo

d ag

ricul

tura

l pra

ctic

es,

nota

bly

by p

rom

otin

g m

easu

res

to p

reve

nt g

roun

d w

ater

dep

letio

n an

d so

il er

osio

n as

wel

l as

limit

agro

-che

mic

al u

se. I

n Sr

i La

nka,

whe

re a

lim

it of

20

000

hect

ares

has

bee

n im

pose

d on

oil

palm

cul

tivat

ion,

cle

arin

g of

exi

stin

g na

tura

l for

ests

rem

ains

st

rictly

forb

idde

n. A

s a

resu

lt, o

il pa

lm c

ultiv

atio

n is

con

fined

to c

onve

rted,

unp

rodu

ctiv

e ru

bber

and

tea

plan

tatio

n la

nd.

34IN

DUST

RY

STAN

DARD

S –

Sust

aina

ble

oil p

alm

Oct

ober

Glo

bal

Indu

stry

sou

rcin

g po

licie

s:

Glo

bal p

acka

ged

food

s co

mpa

ny M

onde

lez

Inte

rnat

iona

l inf

orm

ed t

hat

it ca

lled

on it

s pa

lm

oil s

uppl

iers

to c

omm

it to

zer

o-de

fore

stat

ion

polic

ies

and

com

preh

ensi

ve o

il pa

lm c

once

ssio

n m

appi

ng, a

ddin

g th

at it

has

ex

clud

ed 1

2 up

stre

am s

uppl

iers

from

its

supp

ly c

hain

bec

ause

of b

reac

hes.

On

a re

late

d m

atte

r, gl

obal

food

s an

d dr

inks

m

anuf

actu

rer N

estlé

ann

ounc

ed th

at it

wou

ld e

nd s

ourc

ing

palm

oil

from

sup

plie

rs th

at fa

il to

com

ply

with

its

sust

aina

bilit

y po

licie

s as

the

com

pany

em

brac

es s

atel

lite

tech

nolo

gy th

at a

llow

s tra

cing

def

ores

tatio

n.

Oilcrops complex: Policy changes and industry measures - Annual compendium 2018 45

No.

Dom

ain

Mon

thC

ount

ryD

escr

iptio

n*35

INDU

STRY

ST

ANDA

RDS

– Su

stai

nabl

e oi

l pal

m

Oct

ober

Indi

aN

atio

nal m

arke

t al

lianc

e:

Indi

a ha

s se

en th

e la

unch

of a

Sus

tain

able

Pal

m O

il C

oalit

ion,

Indi

a-SP

OC

, as

a co

llabo

rativ

e eff

ort b

etw

een

the

Cen

tre fo

r Res

pons

ible

Bus

ines

s, W

WF-

Indi

a, R

ainf

ores

t Allia

nce

and

the

Roun

dtab

le o

n Su

stai

nabl

e Pa

lm

Oil

(see

also

MPP

U A

ug.’1

8). A

s th

e w

orld

’s la

rges

t con

sum

er a

nd im

porte

r of p

alm

oil,

Indi

a co

uld

play

a s

igni

fican

t rol

e in

dr

ivin

g su

stai

nabl

e pr

actic

es in

the

palm

oil

sect

or w

orld

wid

e. T

he in

itiat

ive

is a

imed

at a

ddre

ssin

g ba

rrier

s an

d ch

alle

nges

to

sus

tain

able

pal

m o

il, ta

king

into

con

side

ratio

n th

e ch

arac

teris

tics

of In

dia’

s pa

lm o

il in

dust

ry. A

ctiv

ities

will

focu

s on

bes

t pr

actic

es f

or p

rodu

ctio

n, c

ompl

emen

tary

pol

icy

mea

sure

s, t

rade

lin

kage

s, a

nd c

onsu

mer

sen

sitis

atio

n to

sus

tain

abilit

y. Pr

oduc

ers,

civ

il so

ciet

y gr

oups

, con

sum

er g

oods

man

ufac

ture

rs, r

etai

lers

, tra

ders

and

fina

ncia

l ins

titut

ions

will

be in

vite

d to

col

labo

rate

. Rec

ently

, a c

ompa

rabl

e in

itiat

ive

has

been

laun

ched

in C

hina

, the

wor

ld’s

third

larg

est p

alm

oil

impo

rter (

see

MPP

U A

ug.1

8).

36IN

DUST

RY

STAN

DARD

S –

Sust

aina

ble

oil p

alm

Nov

embe

rG

loba

lR

SPO

– r

evis

ed s

tand

ard:

Fol

low

ing

an in

-dep

th m

ulti-

stak

ehol

der r

evie

w o

f its

prin

cipl

es a

nd c

riter

ia, R

SPO

, the

glo

bal,

indu

stry

-led

palm

oil

certi

ficat

ion

body

, ha

s ad

opte

d a

new

cer

tifica

tion

stan

dard

aim

ed a

t st

reng

then

ing

envi

ronm

enta

l pr

otec

tion,

soc

ial d

evel

opm

ent a

nd e

cono

mic

pro

sper

ity a

cros

s th

e pa

lm o

il val

ue c

hain

. The

revi

sion

of t

he e

xist

ing

stan

dard

w

as fr

amed

aro

und

four

key

ele

men

ts: i

) hal

ting

defo

rest

atio

n, ii

) pro

tect

ing

peat

land

s, ii

i) st

reng

then

ing

hum

an a

nd la

bour

rig

hts,

and

iv) e

nhan

cing

tran

spar

ency

in th

e RS

PO sy

stem

– w

ith th

e ul

timat

e ob

ject

ive

to in

crea

se m

arke

t upt

ake

of su

stai

nabl

e pa

lm o

il. N

ew fe

atur

es in

clud

e sp

ecifi

c pr

ovis

ions

to p

rote

ct c

hild

ren

and

the

adop

tion

of z

ero-

defo

rest

atio

n re

quire

men

ts in

hi

gh fo

rest

cov

er la

ndsc

apes

usi

ng th

e H

igh

Car

bon

Stoc

k Ap

proa

ch. T

he la

tter b

ans

the

clea

ranc

e of

sec

onda

ry fo

rest

s an

d ce

rtain

pea

t ar

eas

(whi

ch w

as a

llow

ed u

nder

RSP

O’s

form

er s

tand

ard)

, whi

le r

espe

ctin

g la

nd u

sers

’ rig

hts

and

upho

ldin

g in

dige

nous

peo

ples

’ rig

hts

to s

elf-d

eter

min

atio

n. T

he n

ew s

tand

ard

has

com

e in

to e

ffect

imm

edia

tely,

thou

gh e

xist

ing

RSPO

gr

ower

mem

bers

wer

e gi

ven

a on

e-ye

ar tr

ansi

tion

perio

d fo

r its

ado

ptio

n. T

he re

view

pro

cess

als

o re

sulte

d in

the

subs

eque

nt

deve

lopm

ent

of a

sep

arat

e st

anda

rd s

peci

fical

ly c

over

ing

inde

pend

ent

smal

lhol

ders

, due

for

appr

oval

in N

ovem

ber

2019

. En

viro

nmen

tal a

nd c

ivil s

ocie

ty g

roup

s w

elco

med

the

rele

ase

of th

e ne

w s

tand

ard,

urg

ing

RSPO

to p

roce

ed w

ith it

s im

med

iate

im

plem

enta

tion

and

effec

tive

enfo

rcem

ent,

ensu

ring

clos

e su

pplie

r ove

rsig

ht, i

ndep

ende

nt v

erifi

catio

n, a

nd a

stri

ct c

ompl

ianc

e an

d gr

ieva

nce

syst

em.

37IN

DUST

RY

STAN

DARD

S –

Sust

aina

ble

oil p

alm

Nov

embe

rG

loba

lR

SPO

– i

mpa

ct r

epor

t: A

ccor

ding

to

RSPO

’s 20

18 I

mpa

ct R

epor

t, as

of

June

201

8, t

he o

rgan

izatio

n’s

mem

bers

co

vere

d 3.

2 m

illion

hec

tare

s of

cer

tified

are

a, g

loba

lly, p

rodu

cing

13.

6 m

illion

tonn

es o

f cer

tified

sus

tain

able

pal

m o

il. H

igh

Con

serv

atio

n Va

lue

(HC

V) la

nd s

et a

side

and

man

aged

by

RSPO

mem

bers

is e

stim

ated

to a

mou

nt to

263

000

hec

tare

s –

repo

rtedl

y a 3

9% in

crea

se fr

om th

e pr

evio

us re

porti

ng ye

ar. T

he re

port

also

hig

hlig

hts t

he re

duct

ion

of c

arbo

n di

oxid

e em

issi

ons

foun

d th

roug

h G

HG

ass

essm

ent s

ubm

issi

ons

rece

ived

sin

ce 2

015,

link

ing

the

sam

e to

the

cons

erva

tion

of p

eatla

nds.

38IN

DUST

RY

STAN

DARD

S –

Sust

aina

ble

oil p

alm

Nov

embe

rIn

done

sia

Plan

tatio

n m

appi

ng to

ol:

The

Cen

tre fo

r Int

erna

tiona

l For

estry

Res

earc

h (C

IFO

R) p

lans

to re

leas

e an

inte

ract

ive

map

sho

win

g th

e sp

read

of p

lant

atio

ns a

nd ro

ad n

etw

orks

in In

done

sia’

s Pa

pua

regi

on. T

he a

tlas,

whi

ch is

exp

ecte

d to

she

d lig

ht o

n th

e st

atus

of t

he re

gion

’s fo

rest

s, is

mea

nt to

info

rm th

e po

licym

akin

g an

d pl

anni

ng o

f loc

al o

ffici

als,

rais

ing

thei

r aw

aren

ess

abou

t po

ssib

le a

dver

se im

pact

s on

the

envi

ronm

ent a

nd in

dige

nous

com

mun

ities

.

39IN

DUST

RY

STAN

DARD

S –

Sust

aina

ble

oil p

alm

Nov

embe

rM

alay

sia

RSP

O –

grie

vanc

e ca

se:

RSPO

sus

pend

ed th

e m

embe

rshi

p of

a M

alay

sian

pal

m o

il mill

and

four

of i

ts s

uppl

iers

ove

r alle

ged

labo

ur ri

ght a

buse

s. R

epor

tedl

y, a

com

plai

nt fi

led

back

in 2

015

had

iden

tified

inst

ance

s of

forc

ed la

bour

, poo

r liv

ing

cond

ition

s an

d un

fair

term

s of

em

ploy

men

t. In

ter a

lia, t

he c

once

rned

com

pany

out

sour

ced

its fo

reig

n w

orke

rs to

con

tract

ors,

an

act t

hat

viol

ates

Mal

aysi

an la

w a

nd c

ould

be

cons

ider

ed a

s tra

ffick

ing.

40IN

DUST

RY

STAN

DARD

S –

Sust

aina

ble

oil p

alm

Dece

mbe

rC

olom

bia,

th

e N

ethe

rland

s

Cro

ss-b

orde

r ind

ustr

y al

lianc

e: T

he D

utch

oils

and

fats

indu

stry

ass

ocia

tion

MVO

and

Col

ombi

a’s

natio

nal o

il pal

m g

row

ers

fede

ratio

n FE

DEPA

LMA

(with

sup

port

from

civ

il soc

iety

gro

up S

olid

arid

ad a

nd th

e su

stai

nabl

e tra

de in

itiat

ive

IDH

) join

ed fo

rces

to

pro

mot

e tra

de in

sus

tain

ably

pro

duce

d pa

lm o

il be

twee

n C

olom

bia

and

the

Net

herla

nds.

Bes

ides

bei

ng E

urop

e’s

larg

est

palm

oil

impo

rting

cou

ntry

, the

Net

herla

nds

are

the

dest

inat

ion

for a

roun

d 70

per

cent

of C

olom

bia’

s pa

lm o

il sh

ipm

ents

. (Se

e al

so M

PPU

Jan

.’18)

46 Oilcrops complex: Policy changes and industry measures - Annual compendium 2018

No.

Dom

ain

Mon

thC

ount

ryD

escr

iptio

n*41

INDU

STRY

ST

ANDA

RDS

– Su

stai

nabl

e oi

l pal

m

Dece

mbe

rIn

done

sia,

M

alay

sia

RSP

O –

sm

allh

olde

r su

ppor

t: R

epor

tedl

y, a

proj

ect j

oint

ly im

plem

ente

d by

the

Roun

dtab

le o

n Su

stai

nabl

e Pa

lm O

il –

the

glob

al, i

ndus

try-le

d pa

lm o

il ce

rtific

atio

n bo

dy –

and

the

UN

’s En

viro

nmen

t Pro

gram

me

to p

rom

ote

impr

oved

live

lihoo

ds a

nd

sust

aina

ble

prod

uctio

n am

ong

oil p

alm

sm

allh

olde

rs in

Indo

nesi

a an

d M

alay

sia

has

deliv

ered

the

follo

win

g re

sults

: i)

impr

oved

kn

owle

dge

and

capa

city

on

good

agr

icul

tura

l pra

ctic

es, s

usta

inab

le a

gric

ultu

re a

nd p

ricin

g/gr

adin

g m

echa

nism

; ii)

incr

ease

d ac

cess

to a

gric

ultu

ral in

puts

; iii)

impr

oved

acc

ess

to lo

w-in

tere

st lo

ans;

iv) h

ighe

r aw

aren

ess

abou

t the

ben

efits

of c

ertifi

catio

n;

and

v) b

ette

r kno

wle

dge

of b

arrie

rs li

miti

ng a

cces

s to

cer

tifica

tion,

not

ably

lega

l iss

ues

conc

erni

ng la

nd o

wne

rshi

p.

42IN

DUST

RY

STAN

DARD

S –

Sust

aina

ble

oil p

alm

Dece

mbe

rN

orth

Am

eric

aR

egio

nal m

arke

t alli

ance

: N

ASPO

N, t

he in

dust

ry-le

d N

orth

Am

eric

an S

usta

inab

le P

alm

Oil

Net

wor

k la

unch

ed in

late

201

7 (s

ee M

PPU

Jan

.’18)

, set

up

thre

e ne

w w

ork-

stre

ams

to fu

rther

its

abilit

y to

impa

ct s

usta

inab

le p

alm

oil

upta

ke in

the

regi

on.

New

wor

k w

ill fo

cus

on th

e su

pply

and

upt

ake

of d

eriv

ativ

es o

f cer

tified

pal

m o

il an

d pa

lm k

erne

l oil,

seg

rega

ted

mat

eria

l su

pply

cha

ins,

and

the

deve

lopm

ent o

f edu

catio

nal m

ater

ial.

43IN

DUST

RY

STAN

DARD

S –

Sust

aina

ble

oil p

alm

Dece

mbe

rSo

uthe

ast

Asia

Indu

stry

sou

rcin

g po

licie

s:

Asia

n ag

ribus

ines

s gr

oup

Wilm

ar, w

hich

ple

dged

to s

top

purc

hasi

ng p

alm

oil

from

sup

plie

rs

foun

d to

be

in v

iola

tion

of it

s su

stai

nabi

lity

polic

y, ha

s ad

opte

d a

new

sup

plie

r m

onito

ring

and

enga

gem

ent

prog

ram

me,

en

listin

g th

e su

ppor

t of a

n en

viro

nmen

tal a

dvoc

acy

grou

p. A

llege

dly,

the

initi

ativ

e w

ill he

lp th

e co

mpa

ny m

onito

r thi

rd-p

arty

pl

anta

tions

and

allo

w fo

r fas

ter a

ctio

n ag

ains

t non

-com

plia

nt s

uppl

iers

. The

initi

ativ

e in

clud

es re

med

iatio

n m

easu

res

for p

ast

defo

rest

atio

n or

pea

tland

dev

elop

men

ts. T

he c

ompa

ny e

xpec

ts to

fini

sh m

appi

ng it

s su

pply

cha

in b

y en

d 20

19. A

mon

g ke

y ch

alle

nges

face

d, W

ilmar

list

ed th

e op

aque

ow

ners

hip

stru

ctur

es s

ome

com

pani

es h

ave

in p

lace

. Civ

il so

ciet

y ca

mpa

igne

rs

have

urg

ed th

e co

mpa

ny to

mak

e its

sup

plie

rs’ c

once

ssio

n m

aps

publ

icly

ava

ilabl

e.

44IN

DUST

RY

STAN

DARD

S –

Sust

aina

ble

soy

Mar

chTo

goC

ertifi

ed o

rgan

ic s

oybe

an:

In T

ogo,

a g

roup

of a

gric

ultu

ral e

ntre

pren

eurs

is p

lann

ing

to m

arke

t 10

000

tonn

es o

f cer

tified

or

gani

c so

ybea

n in

the

2018

/19

seas

on. R

epor

tedl

y, a

num

ber o

f NG

Os

and

gove

rnm

ent a

genc

ies

are

back

ing

the

initi

ativ

e by

pr

ovid

ing

assi

stan

ce in

rega

rd to

bus

ines

s pl

an d

evel

opm

ent a

nd p

rovi

sion

of q

ualit

y se

ed.

45IN

DUST

RY

STAN

DARD

S –

Sust

aina

ble

soy

April

Braz

ilSu

stai

nabl

e pr

oduc

tion

– co

untr

y co

aliti

on:

In B

razil

, a c

oalit

ion

of tr

ader

s, e

nviro

nmen

tal g

roup

s, re

sear

ch in

stitu

tes

and

gove

rnm

ent d

epar

tmen

ts la

unch

ed a

tool

des

igne

d to

hel

p pr

oduc

ers

iden

tify

alre

ady

clea

red

land

to p

lant

soy

bean

s in

the

coun

try’s

Amaz

on a

nd C

erra

do b

iom

es. T

he g

roup

cla

ims

that

the

too

l can

hel

p pa

rtici

pant

s in

the

soy

bean

val

ue c

hain

ex

pand

soy

bean

cul

tivat

ion

in a

sus

tain

able

way

, the

reby

con

tain

ing

fore

st d

egra

datio

n an

d ot

her e

nviro

nmen

tal/s

ocia

l ris

ks.

Econ

omic

viab

ility c

onsi

dera

tions

are

als

o ca

ptur

ed b

y the

tool

, as i

nfor

mat

ion

on a

loca

tion’

s yie

ld h

isto

ry, it

s log

istic

al fe

atur

es

and

sim

ilar p

aram

eter

s is

gat

here

d by

the

syst

em. O

ne o

f the

tool

’s m

ain

valu

es is

see

n in

brin

ging

toge

ther

info

rmat

ion

from

m

ultip

le s

ourc

es o

n on

e si

ngle

pla

tform

. Rep

orte

dly,

ther

e ar

e pl

ans

to e

xpan

d co

vera

ge b

y in

clud

ing

Arge

ntin

a’s

Cha

co

regi

on, a

noth

er z

one

whe

re s

oybe

an e

xpan

sion

is a

ssoc

iate

d w

ith e

nviro

nmen

tal d

egra

datio

n ris

ks.

Oilcrops complex: Policy changes and industry measures - Annual compendium 2018 47

No.

Dom

ain

Mon

thC

ount

ryD

escr

iptio

n*46

INDU

STRY

ST

ANDA

RDS

– Su

stai

nabl

e so

y

Augu

stBr

azil,

Ar

gent

ina

Priv

ate

sect

or in

itiat

ives

: N

ew e

fforts

to p

rom

ote

sust

aina

ble

soyb

ean

prod

uctio

n (th

ereb

y m

eetin

g gr

owin

g de

man

d fo

r su

stai

nabl

y pr

oduc

ed s

oy in

Eur

ope

and

else

whe

re) h

ave

been

repo

rted

from

Bra

zil. I

n th

e C

erra

do re

gion

, a v

ast s

avan

nah

zone

in th

e co

untry

’s C

entre

-Wes

t, cl

eara

nce

of n

ativ

e fo

rest

s an

d ve

geta

tion

prog

ress

ed ra

pidl

y in

the

last

15–

20 y

ears

to

free

spac

e fo

r the

cul

tivat

ion

of s

oybe

ans

and

othe

r cro

ps a

nd p

astu

re la

nd –

a d

evel

opm

ent f

uelle

d by

attr

activ

e la

nd p

rices

, le

ss s

tring

ent f

ores

t pre

serv

atio

n re

quire

men

ts c

ompa

red

to th

ose

appl

ied

in th

e Am

azon

bas

in, a

nd th

e ab

senc

e of

bin

ding

pr

ivat

e se

ctor

initi

ativ

es to

pro

tect

the

envi

ronm

ent.

Expe

rts p

oint

ed o

ut th

at u

nche

cked

cro

p ex

pans

ion

in th

e bi

odiv

erse

C

erra

do e

cosy

stem

, whi

ch is

hom

e to

impo

rtant

aqu

ifers

and

rive

r sys

tem

s, c

ould

resu

lt in

soi

l deg

rada

tion,

wat

er ta

ble

and

aqui

fer p

ollu

tion,

cha

nges

in re

gion

al (a

nd p

ossi

bly

cont

inen

t-wid

e) ra

infa

ll pa

ttern

s, a

nd s

harp

redu

ctio

ns in

car

bon

diox

ide

stor

age.

Rep

orte

dly,

vast

are

as o

f dry

fore

sts

in A

rgen

tina’

s G

ran

Cha

co re

gion

are

con

front

ed w

ith id

entic

al c

halle

nges

. In

Braz

il, to

add

ress

thes

e is

sues

, tw

o ne

w in

itiat

ives

hav

e be

en la

unch

ed b

y th

e pr

ivat

e se

ctor

: i) t

he C

erra

do M

anife

sto,

and

ii) a

pr

ogra

mm

e on

resp

onsi

ble

lend

ing.

Acc

ordi

ng to

med

ia re

ports

, the

num

ber o

f com

pani

es v

olun

taril

y ad

herin

g to

the

Cer

rado

M

anife

sto

– an

initi

ativ

e la

unch

ed la

st y

ear b

y en

viro

nmen

tal o

rgan

izatio

ns to

pro

mot

e m

easu

res

that

hel

p en

d th

e co

nver

sion

of

nat

ive

vege

tatio

n in

Bra

zil’s

Cer

rado

bio

me

– co

ntin

ues

to g

row.

Bes

ides

cal

ling

for s

trict

er a

nd m

ore

effec

tive

envi

ronm

enta

l le

gisl

atio

n, th

e M

anife

sto

calls

on

com

pani

es in

the

soy

and

mea

t sup

ply

chai

ns to

a) a

dopt

pol

icie

s to

end

the

conv

ersi

on o

f na

tive

vege

tatio

n, a

nd b

) dis

soci

ate

thei

r pro

duct

ion

chai

ns fr

om re

cent

ly d

efor

este

d ar

eas.

Rep

orte

dly,

over

100

inve

stor

s an

d co

rpor

ate

firm

s, in

clud

ing

seve

ral g

loba

l foo

d ch

ains

and

sup

erm

arke

ts, h

ave

sign

ed o

n to

the

agr

eem

ent.

How

ever

, m

arke

t obs

erve

rs p

oint

ed o

ut th

at g

loba

l com

mod

ity tr

ader

s, w

hich

are

ver

y ac

tive

in th

e C

erra

do, h

ave

been

slo

w in

join

ing

the

initi

ativ

e. M

oreo

ver,

in c

ontra

st to

the

Amaz

on S

oy M

orat

oriu

m (w

hich

doe

s en

joy

the

parti

cipa

tion

of g

loba

l com

mod

ity

trade

rs),

it re

mai

ns u

ncle

ar w

heth

er s

igna

torie

s to

the

Cer

rado

Man

ifest

o –

besi

des

pled

ging

to ta

ke m

easu

res

that

con

tribu

te

to th

e el

imin

atio

n of

nat

ive

vege

tatio

n lo

ss fr

om th

eir s

uppl

y ch

ains

– a

lso

expl

icitl

y co

mm

it to

sto

p pu

rcha

sing

farm

pro

duct

s gr

own

on fr

eshl

y cl

eare

d la

nd. W

ith re

spec

t to

resp

onsi

ble

lend

ing,

glo

bal c

omm

odity

trad

er B

unge

, Ban

co S

anta

nder

and

Th

e N

atur

e C

onse

rvan

cy (T

NC

) ann

ounc

ed th

at th

ey jo

intly

dev

elop

ed a

n in

nova

tive

finan

cing

mec

hani

sm fo

r so

y fa

rmer

s in

Bra

zil’s

Cer

rado

regi

on. T

he p

rogr

amm

e pr

omot

es c

rop

prod

uctio

n th

at fo

rego

es fu

rther

def

ores

tatio

n or

con

vers

ion

of

nativ

e ve

geta

tion

by o

fferin

g lo

ng-te

rm lo

ans

to fa

rmer

s w

illing

to c

omm

it to

the

appr

oach

. The

initi

ativ

e is

aim

ed a

t lim

iting

pr

oduc

tion

expa

nsio

n to

land

that

has

bee

n cl

eare

d al

read

y, th

us g

oing

bey

ond

the

exis

ting

envi

ronm

enta

l reg

ulat

ions

. TN

C

estim

ates

alre

ady

clea

red

land

in th

e C

erra

do s

uita

ble

for s

oybe

an p

rodu

ctio

n at

25

milli

on h

ecta

res.

Und

er th

e pr

ogra

mm

e,

loan

s w

ill be

pro

vide

d to

indi

vidu

al, f

amily

or c

orpo

rate

farm

ers

in e

ligib

le lo

catio

ns.

(On

past

priv

ate

sect

or in

itiat

ives,

see

M

PPU

Jun

e’11

, Jun

e’16

& M

ay’1

8)

47IN

DUST

RY

STAN

DARD

S –

Sust

aina

ble

soy

Dece

mbe

rBr

azil

Sust

aina

ble

prod

uctio

n in

cent

ives

: Th

e C

erra

do W

orki

ng G

roup

(GTC

), w

hich

brin

gs to

geth

er re

pres

enta

tives

of B

razil

’s so

y in

dust

ry, i

nter

natio

nal t

radi

ng fi

rms

and

cons

umer

goo

d co

mpa

nies

, and

env

ironm

enta

l NG

Os,

is e

xplo

ring

the

viab

ility

of s

ettin

g up

a f

und

to r

ewar

d fa

rmer

s in

the

cou

ntry

’s ec

olog

ical

ly r

ich

Cer

rado

bio

me

for

pres

ervi

ng n

ativ

e ve

geta

tion

on th

eir s

oybe

an fa

rms

– he

nce

prot

ectin

g ar

eas

that

cou

ld o

ther

wis

e be

lega

lly d

efor

este

d. A

ctua

lly, C

erra

do fa

rmer

s ar

e on

ly re

quire

d to

pre

serv

e 20

–35

perc

ent o

f the

ir fa

rms’

nat

ive

cove

r – m

uch

less

than

farm

ers

in th

e ne

ighb

ourin

g Am

azon

ba

sin.

The

pro

posa

l und

er c

onsi

dera

tion

envi

sage

s pa

ymen

ts o

f abo

ut U

SD 1

50 p

er h

a pe

r yea

r for

pre

serv

ing

area

s th

at

qual

ify fo

r def

ores

tatio

n, u

sing

land

alre

ady

conv

erte

d to

pas

ture

land

inst

ead.

Fun

ding

wou

ld b

e pr

ovid

ed b

y st

akeh

olde

rs

acro

ss th

e so

y su

pply

cha

in, i

nclu

ding

Bra

zil’s

asso

ciat

ion

of v

eget

able

oil

indu

strie

s (A

BIO

VE),

glob

al tr

adin

g fir

ms,

maj

or

fore

ign

cons

umer

bra

nds

and

larg

e re

taile

rs. T

he a

dmin

istra

tion

and

mon

itorin

g of

suc

h sc

hem

e is

exp

ecte

d to

be

cost

ly a

nd

tech

nica

lly c

halle

ngin

g. R

epor

tedl

y, N

GO

s w

ould

ass

ist i

n fu

nd-r

aisi

ng a

ctiv

ities

and

hel

p al

l seg

men

ts o

f the

sup

ply

chai

n se

cure

inde

pend

ent v

erifi

catio

n of

def

ores

tatio

n/co

nser

vatio

n le

vels

. (Se

e al

so M

PPU

Dec

.’18)

48IN

DUST

RY

STAN

DARD

S –

Sust

aina

ble

soy

Dece

mbe

rG

loba

lR

espo

nsib

le s

ourc

ing

com

mitm

ents

: Su

perm

arke

t cha

in L

idl-U

K pl

edge

d to

exc

lusi

vely

sou

rce

soyb

eans

from

sus

tain

able

, de

fore

stat

ion-

free

sour

ces

in it

s su

pply

cha

in. R

epor

tedl

y, si

nce

Sept

embe

r 201

8, th

e re

taile

r is

back

ing

its s

oybe

an p

urch

ases

by

‘Boo

k &

Cla

im’ c

ertifi

cate

s is

sued

by

the

Roun

dtab

le fo

r Res

pons

ible

Soy

(RTR

S). I

n a

subs

eque

nt p

hase

, the

com

pany

in

tend

s to

mov

e to

war

ds p

hysi

cally

trac

eabl

e su

pply

cha

ins.

48 Oilcrops complex: Policy changes and industry measures - Annual compendium 2018

No.

Dom

ain

Mon

thC

ount

ryD

escr

iptio

n*49

INDU

STRY

ST

ANDA

RDS

– Su

stai

nabl

e co

conu

t

July

Philip

pine

sPr

ivat

e in

dust

ry –

dev

elop

men

t effo

rt:

Glo

bal o

ils/fa

ts m

anuf

actu

rer A

AK in

tend

s to

col

labo

rate

clo

sely

with

Filip

ino

coco

nut

farm

ers

to g

uara

ntee

qua

lity

and

supp

ly fo

r a n

ew p

roce

ssin

g fa

cilit

y lo

cate

d in

Luz

on. R

epor

tedl

y, th

e co

mpa

ny s

trive

s to

im

prov

e th

e su

stai

nabi

lity

of c

ocon

ut p

rodu

ctio

n in

the

coun

try. U

nder

sim

ilar i

nitia

tives

in A

frica

, far

mer

s w

ere

enco

urag

ed to

fo

rm c

oope

rativ

es a

nd re

ceiv

ed a

ssis

tanc

e in

set

ting

up b

ank

acco

unts

. The

com

pany

pla

ns to

pro

duce

for b

oth

the

dom

estic

an

d ex

port

mar

ket.

50IN

TERN

ATIO

NAL

TR

ADE

& DO

MES

TIC

LO

GIS

TIC

S

Febr

uary

Thai

land

, La

o Pe

ople

’s De

moc

ratic

Re

publ

ic

Ove

rsea

s in

vest

men

t: A

Tha

i pal

m o

il tra

der i

s pl

anni

ng to

set

up

an o

il pa

lm p

lant

atio

n an

d a

proc

essi

ng u

nit f

or b

iodi

esel

pr

oduc

tion

in n

eigh

bour

ing

Laos

. Rep

orte

dly,

the

mov

e is

driv

en b

y a

lack

of a

ppro

pria

te o

ppor

tuni

ties

– in

par

ticul

ar th

e lim

ited

avai

labi

lity

of la

nd fo

r pla

ntat

ions

– in

Tha

iland

. Rep

orte

dly,

the

Thai

com

pany

is a

lso

enga

ged

in R

&D w

ork,

focu

sing

on

the

deve

lopm

ent o

f oil p

alm

var

ietie

s th

at a

re to

lera

nt to

the

drie

r wea

ther

con

ditio

ns p

reva

iling

in L

aos.

51IN

TERN

ATIO

NAL

TR

ADE

& DO

MES

TIC

LO

GIS

TIC

S

Mar

chBr

azil,

Pa

nam

aTr

ade

prom

otio

n –

soyb

eans

: Br

azil’s

Apr

osoj

a, th

e As

soci

atio

n of

Soy

bean

and

Mai

ze P

rodu

cers

of M

ato

Gro

sso,

sig

ned

an a

gree

men

t with

the

Pana

ma

Can

al A

utho

rity

to p

rom

ote

the

rece

ntly

exp

ande

d C

entra

l Am

eric

an w

ater

way

as

a ke

y ro

ute

for g

rain

shi

pmen

ts tr

avel

ling

from

Nor

ther

n Br

azil t

o de

stin

atio

ns in

the

Paci

fic O

cean

. Und

er th

e ag

reem

ent,

way

s to

incr

ease

th

e C

anal

’s pa

rtici

patio

n in

Bra

zil’s

risin

g gr

ain

expo

rts w

ill be

exp

lore

d, fo

cusi

ng o

n th

e on

-goi

ng e

xpan

sion

of s

hipm

ents

out

of

Bra

zil’s

new

nor

thea

ster

n te

rmin

als,

whi

ch a

re c

lose

r to

the

Pana

ma

Can

al (s

ee M

PPU

Mar

.’18)

. For

the

time

bein

g, th

e bu

lk

of B

razil

’s gr

ains

are

shi

pped

from

the

coun

try’s

sout

hern

por

ts a

nd th

e At

lant

ic O

cean

. How

ever

, with

rega

rd to

sal

es to

Asi

a,

avai

ling

of th

e C

anal

has

the

pote

ntia

l to

redu

ce to

tal t

rave

l tim

e si

gnifi

cant

ly. T

he n

ew p

artn

ersh

ip w

ill co

ncen

trate

on

Pana

max

ve

ssel

s, g

iven

the

sim

ilarit

y be

twee

n th

e dr

afts

in th

e Am

azon

Riv

er p

orts

and

the

Can

al’s

lock

s. R

epor

tedl

y, th

e ag

reem

ent i

s th

e fir

st m

emor

andu

m o

f und

erst

andi

ng s

igne

d be

twee

n th

e Pa

nam

a C

anal

and

a p

artn

er in

a L

atin

Am

eric

an c

ount

ry.

52IN

TERN

ATIO

NAL

TR

ADE

& DO

MES

TIC

LO

GIS

TIC

S

Mar

chC

hina

, Bra

zilO

vers

eas

inve

stm

ent:

A c

onso

rtium

led

by

stat

e-ow

ned

Chi

na C

omm

unic

atio

ns C

onst

ruct

ion

Com

pany

(C

CC

C)

has

begu

n co

nstru

ctio

n of

the

port

of S

ão L

uís

in B

razil

’s no

rthea

ster

n st

ate

of M

aran

hão.

The

fres

h in

vest

men

t in

Braz

il’s p

ort

infra

stru

ctur

e is

exp

ecte

d to

furth

er e

nhan

ce th

e co

untry

’s ab

ility

to s

hip

grai

ns/o

ilsee

ds v

ia th

e ra

pidl

y ex

pand

ing

north

ern

expo

rt co

rrido

r kn

own

as ‘A

rco

Nor

te’ (

see

also

MPP

U M

ar.’1

8). A

t the

sam

e tim

e, th

e in

itiat

ive

will

allo

w C

hina

to fu

rther

ex

pand

its

pres

ence

in th

e co

untry

that

sat

isfie

s ha

lf of

Chi

na’s

soyb

ean

impo

rt re

quire

men

ts, s

uppl

ying

abo

ut 5

0 m

illion

tonn

es

annu

ally.

The

inve

stm

ent f

ollo

ws

earli

er C

hine

se v

entu

res

in B

razil

’s in

frast

ruct

ure

and

grai

n tra

de (s

ee M

PPU

Feb

.’16,

Jun

e/O

ct./D

ec.’1

7 &

Jan.

’18)

. On

a si

mila

r not

e, p

rivat

e so

urce

s su

gges

ted

that

, in

2017

, Chi

na’s

stat

e-ow

ned

grai

n tra

ding

gro

up

CO

FCO

Inte

rnat

iona

l adv

ance

d to

four

th p

ositi

on in

the

rank

ing

of B

razil

ian

expo

rters

of s

oy, s

oym

eal a

nd m

aize

– a

fter B

unge

, C

argi

ll and

Mar

uben

i, an

d be

fore

Lou

is Dr

eyfu

s an

d AD

M.

53IN

TERN

ATIO

NAL

TR

ADE

& DO

MES

TIC

LO

GIS

TIC

S

May

Chi

naO

vers

eas

inve

stm

ent:

Am

id e

scal

atin

g tra

de te

nsio

ns b

etw

een

Chi

na a

nd th

e U

nite

d St

ates

, mar

ket o

bser

vers

repo

rted

fresh

eff

orts

by

Chi

na’s

stat

e-ow

ned

grai

n tra

ding

gro

up C

OFC

O in

pos

ition

ing

itsel

f to

rais

e so

ybea

n pu

rcha

ses

in B

razil

. To

incr

ease

its

‘orig

inat

ion

capa

bilit

ies’

, the

com

pany

is s

aid

to h

ave

stre

ngth

ened

its

loca

l tea

m o

f buy

ers.

Whi

le in

crea

sing

its

abilit

y to

so

urce

dire

ctly

from

farm

ers,

the

com

pany

als

o re

mai

ns in

volv

ed in

the

impr

ovem

ent o

f the

cou

ntry

’ shi

ppin

g in

frast

ruct

ure.

Re

porte

dly,

CO

FCO

is a

pply

ing

for t

he re

new

al o

f its

por

t con

cess

ions

with

a v

iew

to p

ave

the

way

for f

urth

er in

vest

men

ts. (

See

also

MPP

U F

eb.’1

6 &

June

/Oct

./Dec

.’17)

54IN

TERN

ATIO

NAL

TR

ADE

& DO

MES

TIC

LO

GIS

TIC

S

June

Mal

aysi

aTr

ade

prom

otio

n –

palm

oil:

The

Mal

aysi

an P

alm

Oil C

ounc

il (M

POC

) inf

orm

ed th

at it

will

incr

ease

its

effor

ts to

pro

mot

e sa

les

of M

alay

sian

pal

m o

il to

mar

kets

oth

er th

an th

e Eu

rope

an U

nion

, citi

ng c

once

rns

abou

t the

pos

sibl

e in

trodu

ctio

n of

impo

rt ba

rrier

s in

the

EU.

55IN

TERN

ATIO

NAL

TR

ADE

& DO

MES

TIC

LO

GIS

TIC

S

July

Spai

nTr

ade

prom

otio

n –

oliv

e oi

l: S

pain

’s ol

ive

oil i

ndus

try h

as la

unch

ed a

cam

paig

n to

pro

mot

e ol

ive

oil s

ales

acr

oss

Euro

pe,

Amer

ica

and

Asia

. The

thre

e-ye

ar in

itiat

ive

enjo

ys c

o-fin

anci

ng fr

om th

e Eu

rope

an U

nion

. Pro

mot

iona

l act

iviti

es w

ill be

dire

cted

m

ainl

y to

con

sum

ers

in S

pain

, Ger

man

y, th

e U

nite

d Ki

ngdo

m, B

elgi

um, t

he N

ethe

rland

s, C

hina

, Jap

an, a

nd th

e U

nite

d St

ates

.

Oilcrops complex: Policy changes and industry measures - Annual compendium 2018 49

No.

Dom

ain

Mon

thC

ount

ryD

escr

iptio

n*56

INTE

RNAT

ION

AL

TRAD

E &

DOM

ESTI

C

LOG

ISTI

CS

Augu

stBr

azil

Stor

age

infr

astr

uctu

re: A

ccor

ding

to m

edia

repo

rts, t

wo

Braz

ilian

bank

s hav

e la

unch

ed n

ew c

redi

t lin

es sp

ecifi

cally

ear

mar

ked

for t

he c

onst

ruct

ion,

exp

ansi

on o

r ren

ovat

ion

of o

n-fa

rm g

rain

sto

rage

faci

litie

s.

57IN

TERN

ATIO

NAL

TR

ADE

& DO

MES

TIC

LO

GIS

TIC

S

Augu

stC

hina

, M

alay

sia

Bila

tera

l tra

de in

itiat

ive

– pa

lm o

il:

Chi

na’s

stat

e-ow

ned

tradi

ng a

nd fo

od p

roce

ssin

g gr

oup

CO

FCO

has

sig

ned

a jo

int

vent

ure

agre

emen

t with

a la

rge

Mal

aysi

an p

lant

atio

n co

mpa

ny to

set

up

plan

ts in

Mal

aysi

a fo

r the

pro

duct

ion

of p

alm

oil-

base

d pr

oduc

ts fo

r the

Chi

nese

mar

ket.

58IN

TERN

ATIO

NAL

TR

ADE

& DO

MES

TIC

LO

GIS

TIC

S

Nov

embe

rBr

azil

Farm

er –

infr

astr

uctu

re c

o-fu

ndin

g: C

onfro

nted

with

poo

r roa

d in

frast

ruct

ure

and,

mor

e re

cent

ly, g

over

nmen

t-set

min

imum

tru

ck fr

eigh

t rat

es, M

ato

Gro

sso’

s so

y fa

rmer

s ha

ve re

itera

ted

thei

r int

eres

t in

co-fu

ndin

g th

e co

nstru

ctio

n of

‘Fer

rogr

ão’,

a 93

3-ki

lom

eter

railr

oad

proj

ect t

hat w

ould

con

nect

the

regi

on’s

striv

ing

grai

n ar

eas

with

tran

ship

men

t por

ts in

the

Amaz

on b

asin

(s

ee a

lso M

PPU

Jul

y’17

& J

an./O

ct.’1

8). A

ccor

ding

to M

ato

Gro

sso’

s so

ybea

n gr

ower

s as

soci

atio

n, o

ut o

f an

estim

ated

tota

l co

nstru

ctio

n co

st o

f BRL

12.

7 bi

llion

(USD

3.4

billi

on),

prod

ucer

s co

uld

rais

e BR

L 2.

5 bi

llion

(USD

0.6

6 bi

llion)

. Offi

cial

sou

rces

es

timat

e th

at th

e ra

ilway

wou

ld m

ove

13 m

illion

tonn

es o

f car

go in

its

first

yea

r of o

pera

tion,

and

45

milli

on to

nnes

by

2050

. C

urre

ntly,

mor

e th

an 7

0 pe

rcen

t of M

ato

Gro

sso’

s gr

ains

har

vest

leav

es th

e st

ate

via

its s

outh

boun

d ro

ads

to re

ach

ports

in

mor

e th

an 2

000

km

dis

tanc

e. In

dust

ry e

xper

ts e

xpec

t the

pla

nned

rail-

link

to re

duce

gra

in fr

eigh

t cos

ts b

y BR

L 50

per

tonn

e (U

SD 1

3) o

n av

erag

e.

59M

ARKE

TIN

G

PRAC

TIC

ESFe

brua

ryAr

gent

ina

Roy

alty

pay

men

ts:

Last

Feb

ruar

y, af

ter p

rotra

cted

neg

otia

tions

and

the

deci

sion

of U

.S. s

eed

com

pany

Mon

sant

o to

sus

pend

sa

les

of n

ew s

oybe

an a

nd m

aize

var

ietie

s in

Arg

entin

a (s

ee M

PPU

Jun

e/Ju

ly’16

& F

eb./J

uly’

17),

the

coun

try’s

mai

n fa

rmer

s an

d se

ed p

rodu

cers

ass

ocia

tions

reac

hed

an a

gree

men

t on

the

paym

ent o

f roy

altie

s fo

r GM

see

d va

rietie

s. A

ccor

ding

to lo

cal

med

ia re

ports

, far

mer

s ha

ve a

gree

d to

con

tinue

pay

ing

plan

t bre

eder

s’ ri

ghts

whe

n th

ey re

plan

t GM

see

d –

conc

edin

g th

at th

e co

untry

’s 19

73 s

ee la

w, w

hich

exe

mpt

s fa

rmer

s fro

m p

ayin

g ro

yalti

es w

hen

they

re-u

se s

eeds

obt

aine

d fro

m th

eir o

wn

harv

ests

, is

no

long

er p

ract

icab

le. T

he tw

o si

des

conc

urre

d th

at, w

hen

seed

s ar

e re

plan

ted,

fix

roya

lty p

aym

ents

will

be a

pplie

d du

ring

the

first

thre

e ye

ars,

follo

win

g w

hich

, rat

es c

ould

be

adju

sted

dow

nwar

d. W

heth

er a

nd w

hen

the

coun

try’s

seed

legi

slat

ion

will

be m

odifi

ed a

ccor

ding

ly re

mai

ns to

be

seen

. At a

ny ra

te, t

he re

cent

dea

l sho

uld

allo

w A

rgen

tine

farm

ers

to re

gain

acc

ess

to

stat

e-of

-the-

art G

M s

eed

mat

eria

l.

60M

ARKE

TIN

G

PRAC

TIC

ESFe

brua

ryG

loba

lBl

ockc

hain

-bas

ed tr

ansa

ctio

ns:

Rece

ntly,

glo

bal c

omm

odity

trad

er L

ouis

Drey

fus

com

plet

ed th

e fir

st a

gric

ultu

ral c

omm

odity

tra

nsac

tion

base

d on

a b

lock

chai

n-dr

iven

pla

tform

. The

tra

nsac

tion

invo

lved

a c

argo

of U

.S. s

oybe

ans

ship

ped

to C

hina

, co

verin

g al

l asp

ects

of t

he o

pera

tion

– fro

m fi

nanc

ing

thro

ugh

to c

omm

erci

al c

ontra

ct e

xecu

tion

and

rela

ted

logi

stic

al p

roce

sses

. Th

e di

ffere

nt p

artie

s –

the

trade

r, th

e bu

yer,

the

bank

s is

suin

g an

d co

nfirm

ing

the

rele

vant

lette

r of c

redi

t and

oth

er s

take

hold

ers

– re

lied

excl

usiv

ely

on th

e ne

w p

latfo

rm a

nd it

s di

gita

l tec

hnol

ogy.

Acco

rdin

g to

the

trade

r, us

ing

the

inno

vativ

e to

ol g

reat

ly

redu

ced

time

spen

t on

proc

essi

ng d

ocum

ents

and

allo

wed

for a

larg

er tr

adin

g sc

ope.

Rep

orte

dly,

all p

artic

ipan

ts a

chie

ved

sign

ifica

nt e

ffici

ency

gai

ns. B

enefi

ts li

sted

incl

uded

the

abilit

y to

mon

itor t

he o

pera

tion’

s pr

ogre

ss in

real

tim

e, e

ase

of d

ata

verifi

catio

n, re

duce

d ris

k of

frau

d, a

nd a

sho

rter c

ash

cycl

e. A

llege

dly,

the

plat

form

’s su

cces

s de

mon

stra

tes

the

grea

t pot

entia

l of

dis

tribu

ted

ledg

er te

chno

logi

es to

adv

ance

com

mod

ity tr

adin

g an

d fin

anci

ng.

61M

ARKE

TIN

G

PRAC

TIC

ESFe

brua

ryM

alay

sia

Futu

res

mar

kets

: O

n 28

Feb

ruar

y 20

18,

the

Mal

aysi

an c

omm

odity

exc

hang

e Bu

rsaM

alay

sia i

ntro

duce

d a

num

ber

of

enha

ncem

ent t

o its

cru

de p

alm

oil

futu

res

cont

ract

, inc

ludi

ng a

n in

crea

se in

pos

ition

lim

its, e

xten

ded

tradi

ng h

ours

, add

ition

al

trade

able

con

tract

mon

ths,

and

new

pro

duct

trac

eabi

lity

requ

irem

ents

.

62M

ARKE

TIN

G

PRAC

TIC

ESFe

brua

rySi

ngap

ore

Futu

res

mar

kets

: Th

e As

ia P

acifi

c Ex

chan

ge (A

pex)

has

bee

n ap

prov

ed b

y Si

ngap

ore’

s m

onet

ary

auth

ority

to o

pera

te a

s th

e ci

ty-s

tate

’s th

ird d

eriv

ativ

e ex

chan

ge a

nd c

lear

ing

hous

e. R

epor

tedl

y, Ap

ex w

ill co

mm

ence

trad

ing

in th

e se

cond

qua

rter o

f 20

18, s

tarti

ng w

ith a

USD

-den

omin

ated

and

phy

sica

lly d

eliv

ered

futu

res

cont

ract

for p

alm

ole

in

50 Oilcrops complex: Policy changes and industry measures - Annual compendium 2018

No.

Dom

ain

Mon

thC

ount

ryD

escr

iptio

n*63

MAR

KETI

NG

PR

ACTI

CES

Mar

chEu

rope

an

Uni

onPa

lm o

il m

arke

ting

stra

tegi

es:

In th

e EU

, tw

o re

tail

chai

ns d

ecid

ed to

rem

ove

palm

oil

from

thei

r ow

n-br

and

food

pro

duct

s,

citin

g co

ncer

ns o

ver g

row

ing

cons

umer

app

rehe

nsio

n ab

out t

he u

se o

f alle

gedl

y uns

usta

inab

le c

ultiv

atio

n pr

actic

es in

pro

duci

ng

coun

tries

.

64M

ARKE

TIN

G

PRAC

TIC

ESM

arch

Mal

aysi

aFu

ture

s m

arke

ts:

Mal

aysi

a’s

com

mod

ities

futu

res

exch

ange

Bur

sa M

alay

sia B

erha

d an

noun

ced

a nu

mbe

r of c

hang

es to

its

crud

e pa

lm o

il co

ntra

ct, n

amel

y: i

ncre

ased

pos

ition

lim

its; e

xten

ded

tradi

ng h

ours

; a m

ore

flexi

ble

tradi

ng te

nure

; and

new

pr

oduc

t tra

ceab

ility

requ

irem

ents

.

65M

ARKE

TIN

G

PRAC

TIC

ESAp

rilU

nite

d St

ates

Futu

res

mar

kets

: Th

e C

hica

go M

erca

ntile

Exc

hang

e (C

ME

Gro

up) h

as ra

ised

the

max

imum

dai

ly p

rice

chan

ge p

erm

itted

on

its s

oybe

an c

ontra

cts

by 1

0 U

S ce

nts

to 7

5 U

S ce

nts

per b

ushe

l, w

hile

the

limit

for s

oym

eal h

as b

een

incr

ease

d by

USD

5 to

U

SD 2

5 pe

r ton

ne.

66M

ARKE

TIN

G

PRAC

TIC

ESM

ayM

alay

sia

Futu

res

mar

kets

: Bu

rsa

Mal

aysia

has

laun

ched

an

enha

nced

USD

-den

omin

ated

futu

res

cont

ract

for r

efine

d, b

leac

hed

and

deod

orize

d pa

lm o

lein

, to

prov

ide

mor

e tra

ding

opp

ortu

nitie

s an

d fle

xibi

lity

to a

wid

er g

roup

of i

nves

tors

, bot

h do

mes

tic a

nd

fore

ign.

67M

ARKE

TIN

G

PRAC

TIC

ESM

ayU

nite

d St

ates

Futu

res

mar

kets

: Th

e C

hica

go M

erca

ntile

Exc

hang

e G

roup

con

side

red

rais

ing

the

max

imum

sto

rage

rate

s w

areh

ouse

s ar

e al

low

ed to

cha

rge

hold

ers

of m

aize

and

soy

bean

futu

res,

to a

ddre

ss c

once

rns

that

its

cont

ract

s ar

e no

t ade

quat

ely

refle

ctin

g th

e un

derly

ing

U.S

. cas

h gr

ain

mar

kets

.

68M

ARKE

TIN

G

PRAC

TIC

ESJu

lyG

loba

l‘P

alm

oil-

free’

cer

tifica

tion:

PO

FCAP

, th

e vo

lunt

ary

Inte

rnat

iona

l Pal

m O

il Fr

ee C

ertifi

catio

n Ac

cred

itatio

n Pr

ogra

mm

e,

info

rmed

tha

t it

gain

ed r

egul

ator

y ap

prov

al in

9 c

ount

ries

(Aus

tralia

, Aus

tria,

Fra

nce,

Fin

land

, Ita

ly, S

pain

, Sw

eden

, Uni

ted

King

dom

, Uni

ted

Stat

es),

with

app

licat

ions

pen

ding

in 5

oth

ers.

Com

pani

es o

ptin

g to

dis

play

the

Prog

ram

me’

s ce

rtific

atio

n tra

dem

ark

are

asse

ssed

and

cer

tified

pal

m o

il and

pal

m o

il der

ivat

ives

free

.

69M

ARKE

TIN

G

PRAC

TIC

ESAu

gust

Chi

naFu

ture

s m

arke

ts: O

n 13

Aug

ust,

the

Dalia

n C

omm

odity

Exc

hang

e cu

t mar

gin

requ

irem

ents

for a

num

ber o

f con

tract

s, in

clud

ing

soyo

il an

d pa

lm o

il, an

d na

rrow

ed it

s tra

ding

lim

its o

n al

l con

tract

s. F

urth

erm

ore,

on

22 A

ugus

t, th

e ex

chan

ge h

alve

d its

intra

-da

y tra

nsac

tion

fees

for a

num

ber o

f con

tract

s, in

clud

ing

futu

res

for s

oyoi

l, pa

lm o

il and

soy

mea

l as

wel

l as

for s

oym

eal o

ptio

ns.

On

30 A

ugus

t, th

e ex

chan

ge a

lso

redu

ced

the

num

ber o

f del

iver

y da

tes

for s

oybe

an fu

ture

s fro

m n

ine

to s

ix a

nd li

mite

d th

e fo

rwar

d cu

rve

to 1

2 m

onth

s, in

stea

d of

18.

70M

ARKE

TIN

G

PRAC

TIC

ESN

ovem

ber

Uni

ted

Stat

esFu

ture

s m

arke

ts:

Acco

rdin

g to

med

ia re

ports

, the

US

futu

res

exch

ange

ope

rato

r CM

E G

roup

con

tem

plat

ed th

e la

unch

of a

Br

azilia

n so

ybea

n co

ntra

ct, g

iven

that

the

rece

nt U

S–C

hina

trad

e co

nflic

t alte

red

the

glob

al s

oybe

an tr

ade

patte

rn, c

ausi

ng th

e pr

ice

path

s fo

r Bra

zilia

n an

d U

S so

ybea

ns to

div

erge

. Mar

ket e

xper

ts c

onfir

med

that

pre

miu

ms

plac

ed o

n Br

azilia

n so

ybea

ns

are

diffi

cult

to h

edge

via

the

Chi

cago

Boa

rd o

f Tra

de’s

exis

ting

US-

spec

ific

soy

cont

ract

s.

71R&

D –

Pest

con

trol

Febr

uary

Can

ada

Clu

broo

t (ra

pese

ed):

In re

cent

yea

rs, c

lubr

oot,

a so

il-bo

rne

dise

ase

affec

ting

rape

seed

and

oth

er c

ruci

fero

us c

rops

, has

be

com

e a

key

conc

ern

to fa

rmer

s, e

spec

ially

in C

anad

a bu

t als

o in

par

ts o

f Eur

ope.

The

clu

broo

t pat

hoge

n is

a fu

ngus

-like

or

gani

sm w

hose

spo

res

can

surv

ive

in s

oil f

or u

p to

20

year

s. R

epor

tedl

y, th

ere

are

no c

ost-e

ffect

ive

cont

rol m

easu

res

that

ca

n re

mov

e th

e pa

thog

en fr

om a

fiel

d on

ce it

has

bec

ome

infe

sted

. Met

hods

to c

urta

il th

e sp

read

of t

he d

isea

se a

nd re

duce

its

inci

denc

e an

d se

verit

y in

clud

e ca

refu

l sco

utin

g an

d re

cord

kee

ping

, san

itatio

n, s

oil a

men

dmen

ts, c

rop

rota

tion

and

the

use

of re

sist

ant v

arie

ties.

Acc

ordi

ng to

med

ia re

ports

, see

d fir

ms

are

stru

gglin

g to

dev

elop

new

resi

stan

t var

ietie

s (a

pro

cess

that

re

quire

s up

to 1

0 ye

ars)

, bec

ause

of t

he p

atho

gen’

s ca

paci

ty to

ada

pt q

uick

ly. T

o pr

even

t rap

id g

enet

ic s

hifts

and

sub

sequ

ent

loss

of

effec

tive

resi

stan

ce,

Can

ada’

s ra

pese

ed in

dust

ry a

ssoc

iatio

n re

com

men

ded

purs

uing

var

ieta

l res

ista

nce

rese

arch

ju

dici

ousl

y w

ithin

an

inte

grat

ed m

anag

emen

t app

roac

h th

at in

clud

es p

ract

icin

g a

dive

rse

crop

rota

tion

with

at l

east

two

year

s be

twee

n ra

pese

ed c

rops

. Rep

orte

dly,

cont

rary

to th

ese

reco

mm

enda

tions

, Can

ada’

s re

cent

reco

rd c

rops

hav

e be

en a

chie

ved

in p

art b

y sh

orte

ning

cro

p ro

tatio

n cy

cles

.

Oilcrops complex: Policy changes and industry measures - Annual compendium 2018 51

No.

Dom

ain

Mon

thC

ount

ryD

escr

iptio

n*72

R&D

– Pe

st c

ontro

lAp

rilEu

rope

an

Uni

onXy

lella

fast

idio

sa:

Rece

ntly,

two

addi

tiona

l man

ifest

atio

ns o

f the

bac

teria

l dis

ease

that

thre

aten

s ol

ive

culti

vatio

n in

the

EU

have

bee

n re

porte

d fro

m S

pain

, one

in th

e ou

tski

rts o

f Mad

rid a

nd th

e ot

her i

n An

dalu

sia

(see

also

MPP

U M

ar.’1

8). A

ndal

usia

is

Spai

n’s

lead

ing

oliv

e gr

owin

g re

gion

, pro

duci

ng c

lose

to 1

milli

on to

nnes

of o

live

oil,

or a

lmos

t one

-third

of g

loba

l pro

duct

ion.

M

eanw

hile

, the

num

ber o

f inf

ecte

d tre

es in

Ital

y’s c

onta

inm

ent z

one

is re

porte

d to

hav

e in

crea

sed

furth

er, w

hile

on

the

Fren

ch

isla

nd o

f Cor

sica

xyl

ella

has

bee

n de

tect

ed fo

r the

firs

t tim

e on

oliv

e tre

es. R

esea

rche

rs h

ave

iden

tified

cic

ada

and

spitt

lebu

g as

com

mon

vec

tor i

nsec

ts re

spon

sibl

e fo

r the

spr

eadi

ng o

f the

dis

ease

.

73R&

D –

Pest

con

trol

June

Euro

pean

U

nion

Xyle

lla fa

stid

iosa

: A

grou

p of

rese

arch

ers

supp

orte

d by

the

Euro

pean

Com

mis

sion

dev

elop

ed a

rem

ote,

airb

orne

imag

ing

met

hod

capa

ble

of s

cann

ing

orch

ards

and

det

ectin

g ol

ive

trees

infe

cted

by

the

xyle

lla fa

stid

iosa

bac

teriu

m b

efor

e an

y vi

sibl

e sy

mpt

oms

appe

ar, t

hus

allo

win

g fo

r rap

id a

nd a

ccur

ate

map

ping

of i

nfec

ted

plan

ts. R

epor

tedl

y, on

ce tr

ees

are

infe

cted

, the

y m

ay s

how

no

sym

ptom

s fo

r up

to o

ne y

ear,

durin

g w

hich

tim

e or

dina

ry s

ap-fe

edin

g in

sect

s m

ay b

e tra

nsm

ittin

g th

e in

fect

ion.

Th

eref

ore,

ear

ly d

etec

tion

is d

eem

ed c

ruci

al fo

r con

trollin

g da

mag

e an

d pr

even

ting

the

dise

ase

from

spr

eadi

ng.

74R&

D –

Pest

con

trol

Augu

stIta

lyXy

lella

fas

tidio

sa:

Afte

r th

ree

year

s of

fiel

d tri

als,

a g

roup

of

Italia

n re

sear

cher

s pr

esen

ted

an o

rgan

ic t

reat

men

t fo

r th

e co

ntai

nmen

t of t

he b

acte

rial d

isea

se a

ffect

ing

oliv

e tre

es. T

he tr

eatm

ent r

ests

on

the

bact

eric

idal

pro

perti

es o

f a p

aten

ted

com

poun

d co

ntai

ning

zin

c, c

oppe

r an

d ci

tric-

acid

hyd

raci

ds. R

epor

tedl

y, be

st r

esul

ts a

re o

btai

ned

whe

n th

e tre

atm

ent

is

com

bine

d w

ith th

e re

mov

al o

f affe

cted

par

ts o

f the

tree

s, re

gula

r pru

ning

and

rout

ine

soil h

arro

win

g.

75R&

D –

Varie

tal

rese

arch

& s

eed

rele

ases

Febr

uary

Aust

ralia

Om

ega3

-ric

h ra

pese

ed:

Aust

ralia

n re

gula

tors

app

rove

d ge

netic

ally

mod

ified

(GM

) om

ega3

-ric

h ra

pese

ed fo

r bot

h hu

man

co

nsum

ptio

n an

d us

e in

lives

tock

/aqu

acul

ture

feed

(see

also

MPP

U J

une’

17).

Hop

ing

that

the

appr

oval

will

smoo

then

regu

lato

ry

revi

ews

in o

ther

cou

ntrie

s, th

e se

ed fi

rm th

at d

evel

oped

the

new

pro

duct

sta

rted

plan

ning

the

varie

ty’s

com

mer

cial

rele

ase

in

Aust

ralia

, the

Uni

ted

Stat

es, C

anad

a an

d po

ssib

ly C

hina

. The

com

pany

inte

nds

to p

rodu

ce th

e cr

op u

nder

a c

lose

d-lo

op g

rain

ha

ndlin

g an

d oi

l pro

cess

ing

syst

em.

76R&

D –

Varie

tal

rese

arch

& s

eed

rele

ases

Mar

chG

loba

lG

ene-

editi

ng:

Seed

com

pani

es a

re s

how

ing

incr

ease

d in

tere

st in

gen

e-ed

iting

tech

niqu

es, a

s op

pose

d to

gen

etic

mod

ifica

tion

met

hods

(see

MPP

U D

ec.’1

6 &

Jan.

’18)

. Mon

sant

o in

form

ed th

at it

ent

ered

a p

artn

ersh

ip w

ith a

sta

rt-up

com

pany

to a

dvan

ce

agric

ultu

ral R

&D o

n so

ybea

n, ra

pese

ed a

nd o

ther

cro

ps b

y le

vera

ging

gen

e-ed

iting

tech

nolo

gies

. Rep

orte

dly,

the

tech

nolo

gy

allo

ws

to p

reci

sely

and

rapi

dly

deve

lop

impr

oved

cro

p va

rietie

s, w

ithou

t mak

ing

reco

urse

to D

NA

trans

fer w

ithin

and

acr

oss

spec

ies

boun

darie

s. T

here

fore

, gen

e-ed

iting

cou

ld h

elp

mee

t gro

win

g co

nsum

er d

eman

d fo

r GM

O-fr

ee fa

rm p

rodu

cts.

77R&

D –

Varie

tal

rese

arch

& s

eed

rele

ases

Augu

stAr

gent

ina

Dro

ught

-tol

eran

t soy

bean

: An

Arg

entin

ian

seed

com

pany

ann

ounc

ed th

e re

leas

e of

a n

ew s

oybe

an v

arie

ty th

at it

cla

ims

to

be m

ore

drou

ght-t

oler

ant t

han

conv

entio

nal v

arie

ties.

The

new

var

iety

has

obt

aine

d re

gula

tory

app

rova

l in

Arge

ntin

a an

d th

e co

mpa

ny p

lans

to c

ondu

ct tr

ials

on

farm

ers’

fiel

ds in

the

forth

com

ing

2018

/19

grow

ing

seas

on.

78R&

D –

Varie

tal

rese

arch

& s

eed

rele

ases

Augu

stEu

rope

an

Uni

onG

ene-

editi

ng:

The

med

ia re

porte

d th

at G

erm

an’s

mul

tinat

iona

l bio

tech

firm

s BA

YER

and

BASF

bot

h sh

elve

d pl

ans

to d

evel

op

and

mar

ket g

ene-

edite

d pl

ant v

arie

ties

in E

urop

e fo

llow

ing

the

EU’s

surp

rise

deci

sion

to re

gula

te s

uch

crop

s as

gen

etic

ally

m

odifi

ed o

rgan

ism

s (s

ee M

PPU

Aug

.’18)

. Rep

orte

dly,

the

EU’s

regu

lato

ry a

ppro

ach

to G

E pl

ants

has

resu

lted

in p

rohi

bitiv

ely

high

mar

ket a

cces

s co

sts.

Oth

er n

ews

repo

rted

that

Ger

man

’s Bi

oeco

nom

y C

ounc

il (a

pan

el o

f sci

entis

ts th

at a

dvis

es th

e G

erm

an G

over

nmen

t) an

d a

num

ber o

f res

earc

h in

stitu

tions

in th

e U

nite

d Ki

ngdo

m in

vite

d th

e Eu

rope

an C

omm

issi

on to

rela

x its

regu

latio

ns fo

r GE

crop

s. T

hey

war

ned

that

if s

trict

rule

s on

thes

e cr

ops

cont

inue

d to

app

ly, in

dust

ry fu

ndin

g co

uld

rece

de

and

GE

rese

arch

cou

ld s

hift

to c

ount

ries

whe

re s

uch

rest

rictio

ns w

ere

not i

n pl

ace.

79R&

D –

Varie

tal

rese

arch

& s

eed

rele

ases

Augu

stU

nite

d St

ates

Gen

e-ed

iting

: A

US

biot

ech

com

pany

has

dev

elop

ed, u

sing

inno

vativ

e m

utag

enes

is-b

ased

gen

e ed

iting

(GE)

tech

niqu

es,

a hi

gh-o

leic

soy

bean

var

iety

alle

ged

to o

ffer

impr

oved

nut

ritio

nal a

nd fu

nctio

nal p

rope

rties

than

con

vent

iona

l soy

bean

s. In

ge

nera

l, co

mpa

red

with

trad

ition

al g

enet

ic m

odifi

catio

n m

etho

ds, t

he d

evel

opm

ent o

f GE

crop

s re

quire

s co

nsid

erab

ly le

ss ti

me

and

carri

es m

uch

low

er c

osts

. Fur

ther

mor

e, in

the

Uni

ted

Stat

es, g

ene-

editi

ng o

f cro

ps is

not

sub

ject

to c

umbe

rsom

e re

gula

tory

pr

oced

ures

(see

MPP

U A

ug.’1

8). T

he c

once

rned

com

pany

exp

ects

to s

tart

mar

ketin

g hi

gh-o

leic

soy

bean

oil

in la

te 2

018

or

early

201

9. B

eing

am

ong

the

first

GE

prod

ucts

to re

ach

the

U.S

. mar

ket,

the

laun

ch w

ill al

low

test

ing

cons

umer

acc

epta

nce

of

such

type

of f

ood.

52 Oilcrops complex: Policy changes and industry measures - Annual compendium 2018

No.

Dom

ain

Mon

thC

ount

ryD

escr

iptio

n*80

R&D

– Va

rieta

l re

sear

ch &

see

d re

leas

es

Sept

embe

rKa

zakh

stan

Hyb

rid s

unflo

wer

seed

& s

oybe

an:

Hyb

rid s

unflo

wer

seed

and

soy

bean

var

ietie

s de

velo

ped

thro

ugh

conv

entio

nal b

reed

ing

met

hods

are

read

y fo

r cou

ntry

wid

e te

stin

g in

Kaz

akhs

tan,

loca

l med

ia re

porte

d. R

epor

tedl

y, br

eedi

ng a

ctiv

ities

focu

sed

on th

e fo

llow

ing

traits

: ear

ly m

atur

atio

n, h

igh

yiel

d po

tent

ial,

high

oil c

onte

nt a

nd h

erbi

cide

resi

stan

ce.

81R&

D –

Varie

tal

rese

arch

& s

eed

rele

ases

Oct

ober

Aust

ralia

Rap

esee

d: R

epor

tedl

y, a

new

gen

etic

ally

mod

ified

rape

seed

var

iety

that

allo

ws

late

r and

mor

e fre

quen

t her

bici

de a

pplic

atio

ns

is re

ady

to b

e la

unch

ed in

Aus

tralia

. Rep

orte

dly,

the

varie

ty’s

com

mer

cial

rele

ase

is k

ept p

endi

ng u

ntil

Chi

nese

aut

horit

ies

appr

ove

the

new

eve

nt fo

r im

port.

82R&

D –

Varie

tal

rese

arch

& s

eed

rele

ases

Oct

ober

Uni

ted

Stat

esLo

w-g

ossy

pol c

otto

nsee

d:

Usi

ng g

enet

ic m

odifi

catio

n te

chni

ques

, US

rese

arch

ers

have

dev

elop

ed a

cot

ton

varie

ty w

ith

low

gos

sypo

l pre

senc

e in

the

seed

. Gos

sypo

l is

a to

xic

com

poun

d th

at n

atur

ally

occ

urs

in c

onve

ntio

nal c

otto

nsee

d va

rietie

s.

The

new

var

iety

cou

ld h

elp

low

er c

otto

nsee

d re

finin

g co

sts

and

wou

ld a

llow

exp

andi

ng c

otto

nsee

d us

e in

the

lives

tock

and

aq

uacu

lture

feed

indu

strie

s as

wel

l as

in h

uman

food

app

licat

ions

. Las

t Oct

ober

, the

var

iety

has

bee

n de

regu

late

d by

the

U.S

. An

imal

and

Pla

nt H

ealth

Insp

ectio

n Se

rvic

e.

83R&

D –

Varie

tal

rese

arch

& s

eed

rele

ases

Nov

embe

rU

nite

d St

ates

Cam

elin

a: I

n th

e U

nite

d St

ates

, pla

nt s

cien

tists

are

con

duct

ing

rese

arch

on

gene

tical

ly m

odifi

ed c

amel

ina

sativ

a to

boo

st th

e pl

ant’s

oil o

utpu

t and

redu

ce th

e am

ount

of e

nerg

y re

finer

ies

requ

ire to

con

vert

the

oil in

to fu

el. (

See

also

MPP

U O

ct.1

7)

84R&

D –

Prod

uct

deve

lopm

ent

Mar

chG

loba

lN

on-G

MO

oils

eed

emul

sifie

r: G

loba

l agr

ibus

ines

s fir

m C

argi

ll st

arte

d se

lling

certi

fied

GM

O-fr

ee, d

e-oi

led

rape

seed

leci

thin

on

the

Euro

pean

mar

ket.

Use

d as

em

ulsi

fier i

n th

e ba

kery

and

food

sna

ck in

dust

ry, t

he p

rodu

ct is

sai

d to

offe

r com

para

ble

func

tiona

lity

to c

onve

ntio

nal G

MO

soy

-bas

ed le

cith

in.

85R&

D –

Prod

uct

deve

lopm

ent

Mar

chIre

land

Oliv

e w

aste

-bas

ed fe

ed:

An Ir

ish

firm

cla

ims

to h

ave

deve

lope

d a

proc

ess

for t

urni

ng o

live

was

te p

rodu

cts

into

ani

mal

feed

. Re

porte

dly,

oliv

e fe

ed c

an s

igni

fican

tly im

prov

e th

e fla

vour

, ten

dern

ess

and

nutri

tiona

l pro

file

of m

eat,

by in

crea

sing

the

leve

ls

of o

leic

aci

d, m

onou

nsat

urat

ed fa

t and

glu

tam

ic a

cid.

The

initi

al ta

rget

for t

he n

ew fe

ed is

Jap

anes

e W

agyu

bee

f. Th

e ne

w

feed

stuff

is c

once

ived

as

a fin

ishi

ng fe

ed, o

win

g to

its

high

cal

oric

con

tent

and

abi

lity

to s

uppo

rt w

eigh

t gai

n. W

aste

from

oliv

e oi

l ext

ract

ion

proc

esse

s is

nor

mal

ly a

n en

viro

nmen

tal p

ollu

tant

that

is s

ubje

ct to

stri

ct d

ispo

sal r

egul

atio

ns.

86R&

D –

Prod

uct

deve

lopm

ent

Mar

chRu

ssia

n Fe

dera

tion

Sunfl

ower

-bas

ed fo

od-g

rade

pro

tein

: A R

ussi

an fi

rm d

evel

oped

a p

roce

ss to

pro

duce

hig

h-va

lue

food

-gra

de p

rote

in fr

om

sunfl

ower

seed

pre

ss c

ake,

a b

y-pr

oduc

t of o

il pr

oduc

tion

that

is n

orm

ally

use

d as

feed

. Bas

ed o

n m

echa

nica

l sep

arat

ion

and

mem

bran

e fil

tratio

n pr

oces

ses,

the

tech

nolo

gy d

evel

oped

by

the

com

pany

rem

oves

fibr

e, p

olys

acch

arid

es a

nd fa

t to

obta

in

conc

entra

tes

with

up

to 9

5 pe

rcen

t pro

tein

con

tent

. The

latte

r can

be

used

in s

ports

nut

ritio

n pr

oduc

ts a

nd v

ario

us fu

nctio

nal

food

pro

duct

s.

87R&

D –

Prod

uct

deve

lopm

ent

April

Can

ada

Car

inat

a m

eal:

New

stra

ins

of b

rass

ica

carin

ata,

an

oilc

rop

that

stri

ves

in a

rid c

limat

es a

nd o

n m

argi

nal f

arm

land

not

sui

ted

for

othe

r agr

icul

tura

l cro

ps, m

ay o

ffer a

hig

h-pr

otei

n al

tern

ativ

e fe

ed in

gred

ient

to ra

pese

ed m

eal,

acco

rdin

g to

a g

roup

of s

cien

tists

in

Can

ada

(see

also

MPP

U J

une’

17).

Anal

yses

of t

he n

ew s

train

s’ c

hem

ical

pro

file,

ant

i-nut

rient

com

poun

ds, e

nerg

y va

lues

and

pr

otei

n fra

ctio

ns s

eem

to s

ugge

st th

at c

arin

ata

mea

l can

impr

ove

crud

e pr

otei

n le

vels

and

oth

er m

ilk v

alue

s in

cow

s (c

ompa

red

to ra

pese

ed m

eal).

To

date

, mos

t res

earc

h eff

orts

on

indu

stria

l app

licat

ions

for c

arin

ata

have

focu

sed

on u

ses

of it

s no

n-ed

ible

oi

l as

feed

stoc

k fo

r bio

fuel

s, e

spec

ially

avi

atio

n fu

el (s

ee M

PPU

Dec

.’17)

.

88R&

D –

Prod

uct

deve

lopm

ent

April

Uni

ted

Stat

esH

igh-

olei

c so

ybea

n/so

yoil:

Fo

llow

ing

the

EU’s

regu

lato

ry a

ppro

val

of D

uPon

t’s h

igh-

olei

c so

ybea

n va

riety

‘Pl

enis

h’ i

n De

cem

ber 2

017

and

Chi

na’s

impo

rt au

thor

izatio

n fo

r Mon

sant

o’s ‘

Vist

iveG

old’

hig

h-ol

eic

soyb

eans

in m

id-2

017,

the

US

indu

stry

ex

pect

s w

orld

wid

e pr

oduc

tion,

trad

e an

d co

nsum

ptio

n of

hig

h-ol

eic

soyb

ean

oil t

o ta

ke o

ff in

the

com

ing

year

s. In

the

Uni

ted

Stat

es, w

here

hig

h-ol

eic

soyb

ean

varie

ties

have

bee

n pl

ante

d on

250

000

hec

tare

s 20

17, s

owin

gs a

re p

roje

cted

to c

limb

to

6.5

milli

on h

ecta

res

by 2

027.

Hig

h-ol

eic

soyb

ean

oil –

whi

ch is

dee

med

to b

e m

ore

stab

le a

nd o

ffer i

mpr

oved

func

tiona

lity

and

nutri

tiona

l pro

perti

es th

an c

onve

ntio

nal s

oyoi

l, w

ithou

t req

uirin

g pa

rtial

hyd

roge

natio

n –

is e

xpec

ted

to b

e in

hig

h de

man

d, g

iven

th

at th

e U

.S. F

ood

and

Drug

Adm

inis

tratio

n m

anda

ted

the

com

plet

e re

mov

al o

f par

tially

hyd

roge

nate

d oi

ls fr

om th

e co

untry

’s fo

od s

uppl

y ch

ain

by J

une

2018

(see

also

MPP

U J

une’

13 &

Apr

./Jul

y 20

15).

Oilcrops complex: Policy changes and industry measures - Annual compendium 2018 53

No.

Dom

ain

Mon

thC

ount

ryD

escr

iptio

n*89

R&D

– Pr

oduc

t de

velo

pmen

tM

ayG

loba

lPr

otei

n-ric

h ra

pese

ed:

Seed

com

pany

Dow

DuPo

nt in

tend

s to

laun

ch a

hig

h pr

otei

n-co

nten

t ra

pese

ed v

arie

ty n

ext

year

, ta

rget

ing

pig,

pou

ltry

as w

ell a

s aq

uacu

lture

farm

s in

Can

ada,

Chi

na a

nd th

e U

nite

d St

ates

. Whi

le c

onve

ntio

nal r

apes

eed

mea

l is

sol

d at

a 3

0–35

per

cent

dis

coun

t to

soyb

ean

mea

l, fo

r the

pro

tein

-ric

h va

riety

, the

dis

coun

t wou

ld b

e lo

wer

ed to

10

perc

ent,

the

seed

com

pany

cla

ims.

(See

also

MPP

U M

ar.’1

6 &

July’

18)

90R&

D –

Prod

uct

deve

lopm

ent

June

Glo

bal

Vege

tabl

e oi

l-bas

ed p

last

ic:

Hou

seho

ld g

oods

com

pany

IKEA

and

bio

fuel

pro

duce

r Nes

te in

form

ed th

at th

ey jo

ined

forc

es to

de

velo

p bi

o-ba

sed

plas

tic p

rodu

cts

from

sus

tain

ably

pro

duce

d ve

geta

ble

oils

and

use

d co

okin

g oi

l. Th

e jo

int,

com

mer

cial

sca

le

oper

atio

n is

sch

edul

ed fo

r lau

nch

in th

e fa

ll of

201

8. S

ome

year

s ag

o, M

alay

sia

and

Indo

nesi

a al

so re

porte

d ab

out r

esea

rch

initi

ativ

es to

pro

duce

pla

stic

s fro

m p

alm

oil (

see

MPP

U A

pr./M

ay’1

5).

91R&

D –

Prod

uct

deve

lopm

ent

June

Italy

Oliv

e oi

l pro

vena

nce:

Ita

lian

rese

arch

ers

pres

ente

d a

scie

ntifi

c m

etho

d th

at a

llow

s ce

rtify

ing

the

auth

entic

ity a

nd g

eogr

aphi

c pr

oven

ance

of o

live

oil –

a c

omm

odity

pro

ne to

frau

dule

nt la

bellin

g an

d ad

ulte

ratio

n. U

nder

the

tech

niqu

e, w

hich

has

bee

n co

mpa

red

to ta

king

an

oil’s

fing

erpr

int,

deta

iled

gene

tic in

form

atio

n as

wel

l as

exte

rnal

par

amet

ers

such

as

soil

and

clim

ate

data

of t

he a

rea

whe

re th

e oi

l orig

inat

es a

re re

cord

ed u

sing

nuc

lear

mag

netic

reso

nanc

e (N

MR)

. Sim

ilar t

echn

ique

s ha

ve b

een

deve

lope

d fo

r the

aut

hent

icat

ion

of g

roun

dnut

oil a

s w

ell a

s to

ver

ify th

e pu

rity

of b

iodi

esel

(see

MPP

U J

une’

17).

92R&

D –

Prod

uct

deve

lopm

ent

July

Glo

bal

Oil p

alm

was

te re

cycl

ing:

Res

earc

hers

from

Not

tingh

am U

nive

rsity

’s M

alay

sia b

ranc

h pr

esen

ted

two

new

pro

cess

es to

pro

duce

bu

ildin

g m

ater

ials

and

bio

ener

gy fr

om o

il pa

lm p

roce

ssin

g w

aste

. The

firs

t m

etho

d co

nsis

ts o

f a z

ero-

was

te m

anag

emen

t sy

stem

for p

alm

oil

mills

that

con

verts

all

solid

bio

mas

s w

aste

and

pal

m o

il m

ill effl

uent

(or P

OM

E) in

to b

uild

ing

mat

eria

l and

bi

oene

rgy,

whe

reas

the

seco

nd o

ne fo

cuse

s on

the

recy

clin

g of

PO

ME,

whi

ch c

an b

e hi

ghly

pol

lutin

g w

hen

disc

harg

ed in

to th

e en

viro

nmen

t.

93R&

D –

Prod

uct

deve

lopm

ent

Augu

stU

nite

d St

ates

Food

-gra

de s

unflo

wer

mea

l: A

US

food

ingr

edie

nts

com

pany

has

dev

elop

ed fo

od-g

rade

sun

flow

erse

ed m

eal,

by u

pgra

ding

th

e pr

oduc

t tha

t is

left

afte

r oil i

s ex

tract

ed fr

om s

eeds

. Tra

ditio

nally

use

d ex

clus

ivel

y as

ani

mal

feed

, sun

flow

erse

ed m

eal –

in it

s re

-pur

pose

d fo

rm –

can

pro

vide

con

sum

ers

with

a c

heap

, sus

tain

able

sou

rce

of p

lant

-bas

ed p

rote

in, a

ccor

ding

to th

e co

mpa

ny

94R&

D –

Prod

uct

deve

lopm

ent

Augu

stU

nite

d St

ates

Om

ega3

-ric

h ra

pese

ed:

In th

e U

nite

d St

ates

, om

ega3

-ric

h oi

l der

ived

from

a re

cent

ly d

evel

oped

GM

rape

seed

var

iety

(see

M

PPU

Jan

.’& M

ar.’1

8) h

as b

een

dere

gula

ted

by th

e co

untry

’s An

imal

and

Pla

nt H

ealth

Insp

ectio

n Se

rvic

e, w

hich

det

erm

ined

th

at th

e pr

oduc

t is

unlik

ely

to p

ose

plan

t pes

t ris

ks. A

ppro

val b

y th

e co

untry

’s Fo

od a

nd D

rug

Adm

inis

tratio

n is

ant

icip

ated

to

follo

w p

rior t

o th

e st

art o

f the

201

9 gr

owin

g se

ason

. The

oil,

whi

ch c

an h

elp

redu

ce th

e aq

uacu

lture

indu

stry

’s re

lianc

e on

fish

oi

l-bas

ed fe

ed, a

lread

y ga

ined

regu

lato

ry a

ppro

ved

in A

ustra

lia, w

hile

offi

cial

revi

ews

are

still

unde

rway

in C

anad

a an

d C

hina

.

95R&

D –

Prod

uct

deve

lopm

ent

Oct

ober

Glo

bal

Was

te o

il re

cycl

ing:

Rep

orte

dly,

in G

erm

any,

a gr

oup

of re

sear

cher

s ha

s de

velo

ped

a ca

taly

tic p

roce

ss th

at a

llow

s co

nver

ting

was

te o

ils in

to c

hem

ical

bui

ldin

g bl

ocks

for d

rugs

and

pla

stic

s. O

n th

e sa

me

subj

ect,

scie

ntis

ts in

Aus

tralia

and

the

UK

have

de

velo

ped

a co

ntro

lled-

rele

ase

ferti

lizer

usi

ng r

ecyc

led

rape

seed

oil.

Furth

erm

ore,

US

rese

arch

ers

have

dev

elop

ed n

ew

indu

stria

l use

s fo

r soy

bean

oil i

n th

e fo

rm o

f wax

. Rep

orte

dly,

fully

recy

clab

le a

nd b

iode

grad

able

soy

oil-b

ased

wax

can

repl

ace

petro

leum

-bas

ed p

araffi

n w

ax.

96R&

D –

Prod

uct

deve

lopm

ent

Nov

embe

rU

nite

d St

ates

Bake

ry s

hort

enin

gs:

Afte

r the

intro

duct

ion

of a

tran

s fa

t ban

in th

e U

nite

d St

ates

(see

MPP

U A

ug.’1

8), t

he c

ount

ry’s

food

in

dust

ry h

as c

ome

unde

r pr

essu

re t

o re

plac

e pa

rtial

ly h

ydro

gena

ted

vege

tabl

e oi

ls u

sed

in t

he p

rodu

ctio

n of

sho

rteni

ngs.

Re

porte

dly,

the

indu

stry

is fo

cusi

ng it

s at

tent

ion

on h

igh-

olei

c oi

ls a

nd s

peci

al m

odifi

catio

n te

chni

ques

suc

h as

enz

ymat

ic

inte

rest

erifi

catio

n an

d op

timal

cry

stal

lizat

ion

cond

ition

s.

97R&

D –

Prod

uct

deve

lopm

ent

Dece

mbe

rC

anad

aR

apes

eed

mea

l-bas

ed b

iopl

astic

s:

Repo

rtedl

y, C

anad

ian

rese

arch

ers

deve

lope

d in

nova

tive

tech

nolo

gies

to

prod

uce

biod

egra

dabl

e pl

astic

s fro

m p

rote

in e

xtra

cted

from

rape

seed

mea

l. Su

ppor

t fro

m in

vest

ors

is c

urre

ntly

bei

ng s

ough

t for

the

tech

nolo

gy’s

com

mer

cial

-sca

le a

pplic

atio

n. (S

ee a

lso M

PPU

Apr

./May

’15

& Au

g./D

ec.’1

8)

98R&

D –

Prod

uct

deve

lopm

ent

Dece

mbe

rG

erm

any

Plan

t oi

l-bas

ed p

olye

ster

: In

Ger

man

y, re

sear

cher

s de

velo

ped

a te

chno

logy

to o

btai

n po

lyes

ter

from

fats

and

oils

, mor

e sp

ecifi

cally

cas

tor o

il, by

func

tiona

lizin

g po

lym

eriza

tion.

54 Oilcrops complex: Policy changes and industry measures - Annual compendium 2018

No.

Dom

ain

Mon

thC

ount

ryD

escr

iptio

n*99

R&D

– Pr

oduc

t de

velo

pmen

tDe

cem

ber

Uni

ted

Stat

esSo

yoil-

base

d se

alan

t: U

S re

sear

cher

s ha

ve d

evel

oped

a s

oybe

an o

il-ba

sed

hydr

opho

bic

seal

ant t

hat c

an b

e us

ed to

pro

tect

ne

w a

nd e

xist

ing

conc

rete

to im

prov

e ro

ads.

Rep

orte

dly,

a va

riety

of o

ther

app

licat

ions

is c

urre

ntly

bei

ng te

sted

.

100

BIO

FUEL

/BI

OEN

ERG

YFe

brua

ryG

loba

lLo

w-q

ualit

y bi

odie

sel f

eeds

tock

: Rec

ent s

tudi

es c

onfir

m th

at te

chno

logi

es fo

r pro

duci

ng b

iodi

esel

from

low

-qua

lity f

eeds

tock

–

such

as

low

-pric

ed w

aste

oils

– a

re n

ow a

vaila

ble

and

in u

se, o

fferin

g al

tern

ativ

e pa

ths

for b

iodi

esel

pro

duct

ion.

Rep

orte

dly,

the

mos

t adv

ance

d an

d co

st-e

ffect

ive

met

hods

to p

roce

ss lo

w-q

ualit

y fe

edst

ock

empl

oy liq

uid-

form

ulat

ed e

nzym

es/li

pase

s.

101

BIO

FUEL

/BI

OEN

ERG

YFe

brua

ryU

rugu

ayC

ertifi

ed s

usta

inab

le b

iodi

esel

: A

Fini

sh c

ompa

ny h

as g

aine

d Ro

undt

able

on

Sust

aina

ble

Biom

ater

ials

(RSB

) cer

tifica

tion

for

its p

rodu

ctio

n of

bio

dies

el fr

om b

rass

ica

carin

ata

oil i

n U

rugu

ay. R

SB is

a E

urop

ean

Com

mis

sion

-app

rove

d vo

lunt

ary

sche

me

that

can

be

used

to

show

com

plia

nce

with

the

sus

tain

abilit

y cr

iteria

of

the

EU’s

Rene

wab

le E

nerg

y Di

rect

ive

(see

MPP

U

Aug.

’11)

.

102

BIO

FUEL

/BI

OEN

ERG

YAp

rilFi

nlan

dC

ertifi

ed s

usta

inab

le b

iodi

esel

: A

Fini

sh c

ompa

ny h

as g

aine

d ce

rtific

atio

n by

the

Roun

dtab

le o

n Su

stai

nabl

e Bi

omat

eria

ls

(RSB

) for

bot

h su

stai

nabi

lity

and

low

indi

rect

-land

-use

-cha

nge

risk

(ILU

C) r

egar

ding

its

biof

uel p

rodu

ctio

n fro

m c

rude

tall

oil.

RSB’

s do

uble

cer

tifica

tion

alle

gedl

y m

inim

izes

the

risk

of b

iofu

els

caus

ing

indi

rect

impa

cts

such

as

defo

rest

atio

n or

incr

ease

d fo

od p

rices

in th

ird c

ount

ries.

103

BIO

FUEL

/BI

OEN

ERG

YM

ayAr

gent

ina

Biof

uel f

eeds

tock

– g

roun

dnut

was

te:

In A

rgen

tina,

a la

rge

pean

ut p

rodu

cer b

egan

com

mer

cial

ope

ratio

n of

a g

roun

dnut

sh

ell-p

ower

ed b

ioen

ergy

pla

nt, a

ccor

ding

to m

edia

repo

rts. T

he fa

cilit

y is

exp

ecte

d to

con

sum

e 50

000

tonn

es o

f gro

undn

ut

was

te p

er y

ear a

nd th

e po

wer

pro

duce

d w

ill be

fed

into

the

natio

nal g

rid. T

he p

roje

ct is

par

t of t

he A

rgen

tine

Gov

ernm

ent’s

re

new

able

ene

rgy

prog

ram

me

Reno

vAr.

104

BIO

FUEL

/BI

OEN

ERG

YJu

lyIn

dia

Biof

uel f

eeds

tock

– u

sed

cook

ing

oil:

In In

dia,

glo

bal f

oods

ervi

ce re

tail c

ompa

ny M

cDon

ald’

s st

arte

d re

cycl

ing

into

bio

dies

el

its u

sed

cook

ing

oil f

or p

ower

ing

the

com

pany

’s re

frige

rate

d su

pply

del

iver

y tru

cks,

loca

l med

ia re

porte

d.

105

BIO

FUEL

/BI

OEN

ERG

YDe

cem

ber

Ethi

opia

Jatr

opha

-bas

ed b

iodi

esel

: Acc

ordi

ng to

med

ia re

ports

, a fi

rst o

f 10

plan

ned

Ethi

opia

n bi

odie

sel p

lant

s is

read

y fo

r com

mer

cial

op

erat

ion

in th

e co

untry

’s O

rom

ia re

gion

. Com

mis

sion

ed b

y pub

lic-p

rivat

e pa

rtner

ship

Afri

can

Pow

er In

itiat

ive

(API

) afte

r run

ning

a

pilo

t refi

nery

pla

nt, t

he fa

cilit

y w

ill so

urce

feed

stoc

k fro

m fa

rmer

s w

ho a

re re

fore

stin

g 1.

4 m

illion

hec

tare

s of

land

with

jatro

pha

curc

as, a

dro

ught

-resi

stan

t shr

ub th

at p

rodu

ces

ined

ible

oil.

106

BIO

FUEL

/BI

OEN

ERG

YDe

cem

ber

Indi

aBi

ofue

l fee

dsto

ck –

use

d co

okin

g oi

l: In

the

stat

e of

Har

yana

, con

stru

ctio

n of

a b

iodi

esel

pla

nt u

sing

prim

arily

use

d co

okin

g oi

l (U

CO

) as

feed

stoc

k is

nea

ring

com

plet

ion,

loca

l med

ia re

porte

d. T

he c

ompa

ny ru

nnin

g th

e fa

cilit

y ha

s be

en a

utho

rized

to

colle

ct U

CO

in D

elhi

(Nat

iona

l Cap

ital R

egio

n), H

arya

na a

nd P

unja

b. T

he p

lant

has

a n

amep

late

cap

acity

of 1

00 to

nnes

per

da

y. Be

side

s he

lpin

g to

redu

ce d

epen

denc

e on

impo

rted

crud

e m

iner

al o

il, th

e re

cycl

ing

of U

CO

s is

exp

ecte

d to

hel

p re

duce

th

eir i

llega

l dis

char

ge a

nd p

reve

nt re

-ent

ry in

to th

e fo

od c

hain

. Ove

r the

pas

t few

yea

rs, I

ndia

’s bi

odie

sel m

arke

t has

bee

n pa

rtly

dere

gula

ted,

resc

indi

ng p

rice

ceilin

gs a

nd a

llow

ing

prod

ucer

s to

sel

l the

ir fu

el d

irect

ly to

con

sum

ers

(see

MPP

U J

uly’

15

& O

ct.’1

8).

* N

ote

that

for r

elat

ed h

isto

ric in

form

atio

n th

e re

ader

is d

irect

ed –

bet

wee

n br

acke

ts, i

n ita

lic p

rint –

to p

ast i

ssue

s of

the

Oilc

rops

Mon

thly

Pric

e an

d Po

licy

Upd

ate

(MPP

U),

whi

ch c

an b

e re

triev

ed

on-li

ne a

t http

://w

ww.

fao.

org/

econ

omic

/est

/pub

licat

ions

/oilc

rops

-pub

licat

ions

/mon

thly

-pric

e-an

d-po

licy-

upda

te/e

n/.

Oilcrops complex: Policy changes and industry measures - Annual compendium 2018 56

The present document can be downloaded from the FAO website at URL http://www.fao.org/economic/est/est-commodities/oilcrops/oilcrop-policies/en/. The source publication, FAO’s Oilcrops Monthly Price and  Policy  Update  (MPPU), can be found on webpage http://www.fao.org/economic/est/publications/oilcrops-publications/monthly-price-and-policy-update/en/, which also explains how to subscribe to a dedicated mailing list. Furthermore, an electronic, searchable policy archive can be accessed at http://www.fao.org/economic/est/publications/oilcrops-publications/oilcrops-policy-search-tool/en/.

Le présent document peut être téléchargé sur le site web de la FAO à l’adresse URL suivante: http://www.fao.org/economic/est/est-commodities/oleagineux/politiques-oleagineuses/fr/. La publication de référence, le bulletin FAO Oilcrops Monthly Price and Policy Update (MPPU), peut être téléchargée sur la page web http://www.fao.org/economic/est/publications/publications-sur-oleagineux/bulletin-mensuel-sur-les-prix-et-politiques/fr/, qui explique également comment s’abonner à une liste de diffusion dédiée. De plus, la page http://www.fao.org/economic/est/publications/publications-sur-oleagineux/recherche-interactive-depuis-2009/fr/ donne accés à une archive électronique disposant d'un mécanisme de recherche.

El presente documento se puede bajar del sitio web de la FAO en la URL http://www.fao.org/economic/est/est-commodities/oleaginosas/politicas-oleaginosas/es/. La publicación de origen, el boletín FAO Oilcrops Monthly Price and Policy Update (MPPU), se puede consultar en la página web http://www.fao.org/economic/est/publicaciones/publicaciones-sobre-oleaginosas/oilcrops-monthly-price-and-policy-update/es/, que también facilita instrucciones sobre cómo suscribirse a una lista de correo especializada. Además, la página http://www.fao.org/economic/est/publicaciones/publicaciones-sobre-oleaginosas/busqueda-interactiva-desde-2009/es/ ofrece acceso a un archivo electrónico con un mecanismo de busqueda.

CONTACT CONTACT CONTACTO FAO-oilcropsmarkets@fao.org

CA4463EN/1/05.19

ISBN 978-92-5-131437-1

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