2016

SECTOR OLEAGINOSAS cambios de políticas y de medidas del sector industrial

Compendio anual

FILIÈRE OLÉAGINEUSES évolution des politiques et des mesures sectorielles

Recuei l annuel

OILCROPS COMPLEX policy changes and industry measures

Annual compendium

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, 2017

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 — 2016

FILIÈRE OLÉAGINEUSES évolution des politiques et des mesures sectorielles

Recuei l annuel — 2016

OILCROPS COMPLEX policy changes and industry measures

Annual compendium — 2016

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Contents

Table de matières

Índice

Oilcrops complex: Policy changes and industry measures - Annual compendium 2016 Filière oléagineuses: Évolution des politiques et des mesures sectorielles - Recueil annuel 2016

Sector oleaginosas: Cambios de políticas y de medidas del sector industrial - Compendio anual 2016

Introduction ivHighlights v

Detailed news items: Table 1Government policies implemented in 2016 1-38

Table 2Industry measures and initiativesreported in 2016 39-52

Introduction viiiFaits saillants ix

Articles détaillés: Tableau 1Politiques publiques mises en œuvre en 2016 1-38

Tableau 2Mesures et initiatives sectorielles recensées en 2016 39-52

Introducción xiiAspectos más destacados xiii

Noticias detalladas: Cuadro 1Políticas gubernamentales aplicadas en 2016 1-38

Cuadro 2Medidas e iniciativas del sector industrial en 2016 39-52

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iv Oilcrops complex: Policy changes and industry measures - Annual Compendium 2016

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 2016.

The compendium reproduces, in tabular form, all the policy and industry news items published throughout 2016 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. 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 G. Karumathy and M. Milo. Support from R. Ashton who formatted this report is gratefully acknowledged.

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Oilcrops complex: Policy changes and industry measures - Annual Compendium 2016 v

Highlights

NATIONAL POLICIES

In what follows, the most relevant policy changes and trends observed in 2016 are summarized below in bullet form. More detailed information is available in the two ensuing tables (available in English only).

As to agricultural policies, public support to crop insurance schemes (for oilseeds as well as other crops) was expanded in a number of countries, notably Brazil and India. China, along with its decision to abandon stockpiling policies for maize, started offering incentives to farmers for shifting from maize to soybean cultivation. India added a special bonus to the minimum support prices offered for oilseed and pulse crops, in a bid to stimulate their production and thus reduce the domestic supply deficits characterizing these crops.

Sector development measures: countries in South/Southeast Asia and the Pacific, and to a lesser extent Africa, implemented a variety of measures aimed at strengthening existing or fostering nascent oilcrop industries, including downstream processing activities. Most interventions focused on domestic supply deficits, sector rehabilitation needs, or product diversification opportunities. While a wide range of oilcrops were targeted, coconut palm, oil palm and the olive tree received particular attention.

In several countries, the approval of herbicides and pesticides and of norms regarding their use came under the scrutiny of policy makers, reflecting heightened concerns about potential environmental and health risks. As to disease control measures, in the EU, efforts to combat a bacterial infection affecting olive trees and measures to contain its spread continued during 2016.

In Argentina, the government mediated in the controversy between seed companies and farmers over royalty payments, but, as of December 2016, a permanent agreement has yet to be found.

Regarding biofuel/bioenergy policies, mandatory consumption targets for biodiesel have been raised in several countries (notably the United States, Indonesia and Brazil), while, in others, planned increases were deferred (Malaysia, Thailand). Particularly noteworthy is Indonesia’s increased uptake of palm oil for biodiesel production (aided by government subsidies), to meet the country’s ambitious targets for domestic biofuel consumption. In the United States, the blending of biodiesel with regular diesel continued to benefit from tax breaks. By contrast, public support for biodiesel production and marketing has been downscaled in Australia, Colombia and Thailand. The EU (as of December 2016) was considering to curtail the role of first generation biofuels (such as vegetable oil-based biodiesel) after 2020.

Market regulation tools (such as domestic price thresholds, tax breaks and private stockholding limits) continued to be used by numerous governments, in particular in South and Southeast Asia – either to protect the incomes of oilcrop farmers or to stabilize domestic retail prices for cooking oil. Public procurement, stockholding and auction sales remained in place in China (for soybeans and rapeseed oil) and India (for coconuts and coconut oil). India also launched a new palm oil procurement scheme to stimulate the development of the palm oil industry in the country. In Canada, special government measures to facilitate the flow of oilseed/grain supplies and overcome logistic bottlenecks remained in place in 2016.

Regarding international trade, several countries renewed existing or introduced new measures to promote the exportation of oilseeds and derived products. In Argentina, export restrictions and taxes were removed for the key agricultural export commodities in January 2016, except for the soybean complex, where taxes will be lowered gradually starting in January 2018. Indonesia’s and Malaysia’s sliding export tax regimes for palm oil remained in place.

On the import side, the most important changes concern import duty reductions/suspensions to address domestic supply shortages and check domestic food price inflation, with India being the most prominent example. As to non-tariff measures, China temporarily restricted – on phytosanitary grounds – rapeseed imports from Canada, while Indonesia introduced state controls on soybean imports in a bid to promote domestic soybean production.

vi Oilcrops complex: Policy changes and industry measures - Annual Compendium 2016

INDUSTRY MEASURES

Negotiations on a number of bilateral comprehensive trade agreements and initiatives specifically targeted to oilseed products continued in 2016, involving some important exporting/importing nations. As to bilateral trade disputes, the WTO ruled on two cases (concerning, respectively, biodiesel imports by the EU and palm oil imports by the Russian Federation), finding violations of WTO rules and country commitments. Furthermore, a new dispute opened between Peru and Argentina concerning biodiesel trade.

Concerning food standards, two countries, Canada and Chile, mandated the labeling of saturated fat content in food products, while others proposed to strictly regulate or ban the presence of trans-fats in foods. Elsewhere, various other food safety measures have been enforced, in particular instruments to combat vegetable oil adulteration.

With respect to GMOs, China indicated that it could gradually relax the strict anti-GMO stance maintained in past years, adding that possibilities of developing GM maize and soybean varieties could be considered. India, which authorized field trials on selected GM crops in 2015, technically cleared a locally developed mustard seed, after completing an assessment of potential health and environmental risks. In other countries, restrictions on the production, trade and use of GMO crops were upheld amid increased public scrutiny. The United States decided (ending lengthy policy debates) to introduce mandatory labelling of GMO ingredients in food products over a two-year period.

Under pressure from civil society groups, some governments – notably in Southeast Asia – raised their efforts to enforce the adoption of sustainable production practices by the oil palm industries of their respective countries. Regulatory measures concerning oil palm development concentrated on forest conservation and fire prevention, peatland restoration, and the protection of the rights of indigenous people and plantation labourers.

Private sector standards continued to play an important role in shaping the global oilseed, oils and meals economy. In particular, voluntary industry standards on sustainable production practices for palm oil and soybean evolved further during 2016 – driven by rising public concerns and continued pressure from civil society groups. In the case of palm oil, RSPO (the leading, industry-led standard setting and certification body) launched a more rigorous voluntary production code, enhanced the traceability of certificate trading, and strengthened its internal compliance requirements and control mechanisms. Moreover, new efforts to improve smallholder access to certification have been reported from several countries. Civil society groups continued to scrutinize the production practices of individual oil palm companies. They also questioned the adherence of palm oil buyers, lending institutions and other stakeholders to their own sustainability policies and commitments. Regarding the existing voluntary standards, some industry players started calling for the adoption of more rigorous criteria, while others supported the implementation of less stringent rules. As to trade, in 2016, the share of certified palm oil marketed through Book&Claim mechanisms (i.e. channels contributing only indirectly to sustainable production systems) dropped to 35 percent, implying that 65 percent were sold via physical supply chains – compared to only 45 percent in 2015. However, global demand for certified sustainable palm oil by end-users continued to fall short of available supplies, hence eroding the profitability of certification.

Compared to palm oil, the public debate about sustainable soybean production remained less intense, though calls on companies to source soybeans more responsibly continued in 2016. While national and international bodies certifying sustainable soy production reported increased output and sales of certified soy, the overall market share of certified products remained small. The market mostly relied on certificate trading rather than physical supply chains. In Brazil, the private sector moratorium on purchases of soy produced on illegally cleared land in the Amazon Region became permanent (after having been renewed annually since 2008).

Regarding GMOs, industry efforts to segregate non-GM crops from GM crops continued in 2016, reflecting the trade’s interest to secure the premiums associated with GM-free sales. Moreover, several new initiatives by food manufacturers to offer non-GM products – to cater for special consumer preferences – were reported.

Oilcrops complex: Policy changes and industry measures - Annual Compendium 2016 vii

As to biofuels, in the EU, civil society groups continued to question the potential of crop-based biodiesel to reduce GHG emissions. In the meantime, several new industry initiatives to replace food feedstock with non-food feedstock – notably tallow, used cooking oil and other agricultural waste – were reported, in particular in Europe. Furthermore, in Southeast Asia, more companies moved into energy production from coconut waste and palm oil mill effluent (POME).

Industry-led and academic R&D efforts reported during 2016 concentrated on (i) disease control in soybean cultivation; trans-fat free vegetable oil refining methods; (ii) techniques to detect adulteration in olive oil and optimization of olive oil extraction processes; and (iii) the development of new oilseed varieties (including through traditional, GM-free breeding techniques) offering high performance and other traits of economic interest or special health attributes.

Regarding international markets, Chinese companies further consolidated their presence in international grain/oilseed markets, thereby reducing the nation’s dependence on foreign suppliers and third-party traders. Malaysian oil palm firms – faced with domestic land and labour shortages – set up ventures in the Philippines. In Brazil, transport options via the country’s northern export corridor improved considerably following large private investments in port infrastructure.

With regard to futures markets, China’s leading exchange for agricultural commodities considered the launch of soymeal options, and the Chicago-based CME exchange partnered with Bursa Malaysia and Thomson Reuters to add four new palm oil contracts to its activities.

viii Filière oléagineuses: Évolution des politiques et des mesures sectorielles - Recueil annuel 2016

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 2016.

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 2016 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 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 G. Karumathy et M. Milo. Le soutien de R. Ashton, qui a formaté ce rapport, est apprécié.

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Filière oléagineuses: Évolution des politiques et des mesures sectorielles - Recueil annuel 2016 ix

Faits saillants

Les paragraphes ci-après résument les évolutions des politiques et les tendances les plus pertinentes observées en 2016 sous forme de liste à puces. Des informations plus détaillées sont fournies dans les deux tableaux qui suivent (disponibles en anglais seulement).

POLITIQUES PUBLIQUES

Concernant les politiques agricoles, le soutien public aux systèmes d’assurance-récolte (pour les graines oléagineuses, ainsi que pour d’autres cultures) a été élargi dans plusieurs pays, notamment au Brésil et en Inde. La Chine, parallèlement à sa décision d’abandonner les politiques de stockage du maïs, a commencé à mettre en place des mesures visant à inciter les agriculteurs à délaisser la culture du maïs au profit du soja. L’Inde a ajouté un bonus spécial aux prix minimum de soutien offerts pour les graines oléagineuses et les légumineuses, en vue de stimuler la production de ces cultures et de réduire ainsi les déficits de l’offre intérieure qui caractérisent ces cultures.

Mesures de développement du secteur: plusieurs pays d’Asie du Sud, d’Asie du Sud-Est et du Pacifique, et dans une moindre mesure d’Afrique, ont mis en place une série de mesures visant à renforcer les entreprises existantes ou à encourager les entreprises naissantes dans le secteur des graines oléagineuses, y compris les activités de transformation en aval. La plupart des interventions visaient à combler les déficits de l’offre intérieure, à répondre aux besoins du secteur en matière de relèvement, ou à favoriser les possibilités de diversification de la production. Bien qu’un large éventail de cultures oléagineuses aient été ciblées, trois secteurs ont bénéficié d’une attention particulière: les cocotiers, les palmiers à huile et les oliviers.

Dans plusieurs pays, les autorisations accordées aux pesticides et les normes concernant leur utilisation ont fait l’objet d’un contrôle renforcé des décideurs, en raison de préoccupations accrues quant aux risques potentiels pour l’environnement et la santé. Pour ce qui est des mesures de lutte contre les maladies, dans l’Union européenne (UE), les efforts déployés pour lutter contre une infection bactérienne affectant les oliviers et les mesures visant à contenir sa propagation ont été maintenus en 2016.

En Argentine, le gouvernement a arbitré le désaccord entre les entreprises semencières et les agriculteurs concernant le paiement de redevances; cependant, en décembre 2016, aucune solution permanente n’avait été identifiée.

En ce qui concerne les politiques en matière d’agrocarburants et de bioénergie, les objectifs de consommation obligatoire pour le biodiesel ont été révisés à la hausse dans plusieurs pays (notamment aux États-Unis, en Indonésie et au Brésil), tandis que dans d’autres, les augmentations prévues ont été reportées (Malaisie, Thaïlande). Il convient de noter que l’Indonésie a augmenté sa consommation d’huile de palme pour la production de biodiesel (à l’aide de subventions gouvernementales) pour répondre aux objectifs ambitieux que le pays s’est fixés en matière de consommation nationale d’agrocarburants. Aux États-Unis, les mélanges de biodiesel avec du diesel ordinaire ont continué de bénéficier d’avantages fiscaux. En revanche, les mesures de soutien public à la production et à la commercialisation de biodiesel ont été revues à la baisse en Australie, en Colombie et en Thaïlande. L’UE (en décembre 2016) envisage de réduire la part des agrocarburants de première génération (tels que le biodiesel à base d’huile végétale) après 2020.

De nombreux gouvernements ont continué à recourir à des outils de réglementation du marché (tels que les seuils de prix domestiques, les allégements fiscaux et les limites de stockage privé), en particulier en Asie du Sud et du Sud-Est – pour protéger les revenus des producteurs de cultures oléagineuses ou pour stabiliser les prix de détail de l’huile de cuisson sur leurs marchés intérieurs. Les politiques d’achat publics, de stocks et de ventes aux enchères sont restées en place en Chine (pour le soja et l’huile de colza) et en Inde (pour les noix de coco et l’huile de noix de coco). L’Inde a également lancé un nouveau programme d’achat d’huile de palme afin d’encourager le développement de la production d’huile de palme dans le pays. Au Canada, les mesures publiques spécifiques visant à faciliter la circulation des graines oléagineuses et des céréales et à surmonter les problèmes logistiques sont restées en place en 2016.

x Filière oléagineuses: Évolution des politiques et des mesures sectorielles - Recueil annuel 2016

En ce qui concerne le commerce international, plusieurs pays ont renouvelé les mesures existantes ou ont introduit de nouvelles mesures visant à promouvoir l’exportation des graines oléagineuses et de leurs produits dérivés. En Argentine, en janvier 2016, les restrictions et les taxes à l’exportation ont été supprimées pour les principaux produits agricoles d’exportation, sauf dans le secteur du soja, au sein duquel les taxes seront abaissées progressivement à compter de janvier 2018. En Indonésie et en Malaisie, les systèmes de taxes progressives sur les exportations d’huile de palme sont restés en place.

Du côté des importations, les évolutions les plus significatives concernent les réductions/suspensions des droits à l’importation pour lutter contre les pénuries nationales de l’offre et maîtriser l’inflation des prix alimentaires intérieurs, l’Inde étant l’exemple le plus marquant. Concernant les mesures non tarifaires, la Chine a provisoirement restreint – pour des motifs phytosanitaires – les importations de colza en provenance du Canada, tandis que l’Indonésie a introduit des contrôles publics sur les importations de soja en vue de promouvoir la production intérieure de soja.

Les négociations sur un certain nombre d’initiatives et d’accords commerciaux bilatéraux et spécifiquement axés sur les produits d’oléagineux se sont poursuivies en 2016, impliquant plusieurs des principaux pays exportateurs/importateurs. Pour ce qui est des différends commerciaux bilatéraux, l’OMC a statué sur deux affaires (concernant, respectivement, les importations de biodiesel par l’UE, et les importations d’huile de palme par la Fédération de Russie), après avoir constaté des violations des règles de l’OMC et des engagements pris par les pays. Par ailleurs, un nouveau différend a éclaté entre le Pérou et l’Argentine concernant le commerce de biodiesel.

En ce qui concerne les normes alimentaires, deux pays, le Canada et le Chili, ont rendu obligatoire l’étiquetage de la teneur en graisses saturées dans les produits alimentaires, tandis que d’autres ont proposé de réglementer de manière stricte, voire d’interdire, les gras trans dans les aliments. Ailleurs, diverses autres mesures de sécurité sanitaire des aliments ont été imposées, en particulier des instruments visant à lutter contre l’altération des huiles végétales.

En ce qui a trait aux OGM, la Chine a indiqué qu’elle pourrait assouplir progressivement sa position stricte anti-OGM en place depuis plusieurs années et a ajouté que des possibilités de développement de variétés de maïs et de soja GM pourraient être envisagées. L’Inde, qui a autorisé en 2015 les essais en champ de certaines cultures GM, a approuvé sur le plan technique des graines de moutarde GM développées localement, après avoir mené une évaluation des risques possibles pour la santé et l’environnement. Dans d’autres pays, des restrictions sur la production, le commerce et l’utilisation de certaines cultures GM ont été approuvées dans un soucis accru de contrôle public. Les États-Unis ont décidé (à l’issue de longs débats politiques) d’introduire l’étiquetage obligatoire des ingrédients OGM dans les produits alimentaires au cours d’une période de deux ans.

Sous la pression de groupes de la société civile, certains gouvernements – notamment en Asie du Sud-Est – ont accru leurs efforts visant à imposer l’adoption de pratiques de production durable dans les industries du palmier à huile de leurs pays respectifs. Les mesures réglementaires concernant le développement des palmiers à huile se sont concentrées sur la conservation des forêts et la prévention.

Filière oléagineuses: Évolution des politiques et des mesures sectorielles - Recueil annuel 2016 xi

MESURES ET INITIATIVES SECTORIELLESLes normes du secteur privé ont continué de jouer un rôle important dans l’essor de l’économie mondiale des graines, des huiles et des farines d’oléagineux. En particulier, les normes volontaires du secteur sur les pratiques de production durable de l’huile de palme et du soja ont encore évolué en 2016, motivées par les fortes inquiétudes du public et sous la pression continue de groupes de la société civile. Dans le cas de l’huile de palme, la Table ronde sur la production durable d’huile de palme (le principal organe de certification et d’établissement des normes, à l’initiative de l’industrie) a non seulement adopté un code de production volontaire plus rigoureux, mais elle a également amélioré la traçabilité des échanges de certificats, et a renforcé ses exigences internes en matière de conformité et ses mécanismes de contrôle. En outre, de nouveaux efforts visant à améliorer l’accès des petits exploitants aux systèmes de certification ont été signalés dans plusieurs pays. Dans le même temps, les groupes de la société civile ont continué d’examiner les méthodes de production des différentes sociétés productrices de palmiers à huile. Ils ont également remis en question l’adhésion des acheteurs d’huile de palme, des institutions de prêt et autres parties prenantes à leurs propres engagements et politiques en matière de durabilité. En ce qui concerne les normes actuellement en vigueur, certains acteurs du secteur ont réclamé l’adoption de critères plus rigoureux, tandis que d’autres ont appuyé la mise en œuvre de règles moins strictes. Pour ce qui est des échanges, en 2016, la part de l’huile de palme certifiée durable commercialisée à travers les mécanismes Book&Claim (c’est-à-dire des canaux qui ne contribuent qu’indirectement aux systèmes de production durable) a chuté à 35 pour cent, ce qui signifie que près de 65 pour cent des échanges ont été réalisés à travers des chaînes d’approvisionnement physiques – contre seulement 45 pour cent en 2015. Cependant, la demande mondiale d’huile de palme certifiée durable par les utilisateurs finaux est restée inférieure à l’offre disponible, ce qui affaiblit sérieusement la rentabilité de la certification

Le débat public concernant la production durable de soja reste moins intense que dans le secteur de l’huile de palme, même si la pression a été maintenue en 2016 sur les entreprises pour les inciter à produire du soja de manière plus responsable. Bien que les organes nationaux et internationaux certifiant la production durable de soja aient signalé une augmentation de la production et des ventes de soja certifiées, la part de marché des produits certifiés reste faible. En outre, le marché s’appuie principalement sur les échanges de certificat plutôt que sur les chaînes d’approvisionnement physiques. Au Brésil, le moratoire du secteur privé sur les achats de soja produit sur des terres défrichées illégalement dans la région de l’Amazone est devenu permanent (après avoir été renouvelé chaque année depuis 2008).

En ce qui concerne les OGM, les efforts déployés par le secteur pour séparer les cultures non-GM des cultures GM se sont poursuivis en 2016, en raison notamment de l’intérêt des commerçants de garantir les primes associées aux ventes de produits sans OGM. En outre, plusieurs nouvelles initiatives des fabricants alimentaires visant à offrir des produits non GM – pour satisfaire les préférences de certains consommateurs – ont été signalées.

En ce qui concerne la production d’agrocarburants dans l’UE, les groupes de défense de l’environnement ont continué de remettre en question la capacité des biodiesels produits à partir de cultures à réduire les émissions de GES. Parallèlement, plusieurs nouvelles initiatives sectorielles visant à remplacer les matières premières alimentaires (pour la production de biodiesel) par des produits non alimentaires – notamment du suif, des huiles de cuisson usagées et d’autres déchets agricoles – ont été signalées, en particulier en Europe. En outre, en Asie du Sud-Est, davantage de compagnies se sont tournées vers la production d’énergie à partir de déchets de noix de coco et des effluents issus des moulins à huile de palme.

En 2016, les efforts de recherche-développement, universitaires et à l’initiative du secteur, se sont concentrés sur les domaines suivants: i) la lutte contre les maladies dans la sojaculture; ii) les méthodes de raffinage de l’huile végétale sans gras trans; iii) les techniques pour détecter le frelatage de l’huile d’olive et l’optimisation des procédés d’extraction de l’huile d’olive; et iv) le développement de nouvelles variétés de graines oléagineuses (y compris par des techniques d’hybridation traditionnelles, sans OGM) caractérisées par de meilleurs rendements et d’autres attributs d’intérêt économique ou par des propriétés spéciales en termes de santé.

En ce qui concerne les marchés internationaux, les entreprises chinoises ont encore consolidé leur présence sur les marchés internationaux des céréales et des graines oléagineuses, réduisant ainsi la dépendance nationale à l’égard des fournisseurs étrangers et des commerçants tiers. Les sociétés malaisiennes productrices d’huile de palme – confrontées à des pénuries de terre et de main-d’œuvre – ont établi des activités aux Philippines. Au Brésil, les options de transport via les couloirs d’exportation du nord du pays se sont considérablement améliorées grâce à des investissements privés d’envergure dans les infrastructures portuaires.

En ce qui concerne les marchés à terme, la principale bourse chinoise pour les produits agricoles envisage le lancement d’options sur la farine de soja, et la bourse d’échange de Chicago (CME) a établi un partenariat avec Bursa Malaysia et Thomson Reuters en vue d’ajouter à ses activités quatre nouveaux contrats sur l’huile de palme.

xii Sector oleaginosas: Cambios de políticas y de medidas del sector industrial - Compendio anual 2016

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 2016.

El compendio reproduce, en forma tabular, todas las políticas y noticias del sector industrial aparecidas durante 2016 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. 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 G. Karumathy y M. Milo. Se agradece el apoyo de R. Ashton que formateó este informe.

©/Flickr Ann Berlin

Sector oleaginosas: Cambios de políticas y de medidas del sector industrial - Compendio anual 2016 xiii

Aspectos más destacados

En las siguientes líneas se presentan de manera resumida los cambios de política y tendencias más relevantes observadas en 2016. En los cuadros que figuran a continuación (disponibles sólo en inglés) se proporciona información más detallada.

POLÍTICAS GUBERNAMENTALES

En lo que se refiere a las políticas agrícolas, el apoyo público a los planes de seguro de las cosechas (tanto de las semillas oleaginosas como de otros cultivos) ha aumentado en varios países, principalmente en el Brasil y la India. China, junto con su decisión de abandonar las políticas de acumulación de existencias de maíz, comenzó a ofrecer incentivos a los agricultores para que dejaran el cultivo del maíz y pasaran al de la soja. La India añadió una prima especial al incentivo de precio mínimo ofrecido para las semillas oleaginosas y las legumbres, con objeto de estimular la producción de estos cultivos y reducir el déficit de los suministros internos.

Medidas de desarrollo del sector: Los países de Asia meridional y sudoriental y el Pacífico y, en menor medida, de África, aplicaron varias medidas encaminadas a fortalecer las empresas de producción de semillas oleaginosas existentes o promover las emergentes, incluidas las actividades de elaboración posteriores. El objetivo de la mayoría de las intervenciones fue hacer frente a los déficit de suministros internos, las necesidades de rehabilitación del sector o las oportunidades de diversificación de la producción. Aunque se seleccionó una amplia variedad de semillas oleaginosas, los sectores del aceite de coco, el aceite de palma y los olivos recibieron una atención particular

En varios países, la aprobación de plaguicidas y las normas relacionadas con su empleo han sido objetos de análisis por parte de los responsables de las políticas, reflejando una mayor preocupación por los posibles riesgos ambientales y sanitarios. En cuanto a las medidas de control de las enfermedades, la UE siguió realizando esfuerzos por combatir una infección bacteriana que afecta a los olivos y aplicando medidas para contener su propagación durante 2016.

En la Argentina, el Gobierno medió en el desacuerdo entre las empresas productoras de semillas y los agricultores sobre el pago de regalías, pero, en diciembre de 2016, todavía no se había encontrado una solución permanente.

En lo concerniente a las políticas en materia de biocombustibles/bioenergía, los objetivos de consumo obligatorio para biodiesel se han elevado en varios países (principalmente en los Estados Unidos, Indonesia y el Brasil), mientras que en otros (Malasia y Tailandia), se pospusieron los aumentos previstos. En particular, cabe mencionar el mayor uso por parte de Indonesia del aceite de palma para la producción de biodiesel (ayudado por las subvenciones gubernamentales), para cumplir con las ambiciosas metas nacionales en materia de consumo interno de biocombustibles. En los Estados Unidos, la mezcla de biodiesel con diesel regular siguió beneficiándose de exenciones fiscales. En cambio, el apoyo público a la producción y comercialización de biodiesel se ha reducido en Australia, Colombia y Tailandia. La UE (en diciembre de 2016) estaba considerando reducir la importancia de los biocombustibles de primera generación (como los biodiesel basados en aceites vegetales) después de 2020.

Numerosos gobiernos siguieron utilizando instrumentos de regulación del mercado (como umbrales para precios internos, beneficios fiscales y límites a la acumulación de existencia privadas), en especial en Asia meridional y sudoriental, ya sea para proteger los ingresos de los productores de semillas oleaginosas o para estabilizar los precios al por menor internos del aceite para cocinar. Las compras públicas, la acumulación de existencias y las ventas en subastas siguen realizándose en China (para la soja y el aceite de colza) y la India (para las nueces de coco y el aceite de coco). Además, la India ha puesto en marcha un nuevo plan de compra de aceite de palma para impulsar el desarrollo de la producción de aceite de palma en el país. En el Canadá, las medidas gubernamentales especiales para facilitar el flujo de suministros de semillas oleaginosas/cereales y superar los estrangulamientos logísticos se mantuvieron en 2016.

xiv Sector oleaginosas: Cambios de políticas y de medidas del sector industrial - Compendio anual 2016

En lo que se refiere comercio internacional, varios países renovaron las medidas existentes o introdujeron otras nuevas para promover la exportación de semillas oleaginosas y productos derivados. En la Argentina, las restricciones y los impuestos a la exportación de productos básicos agrícolas clave se eliminaron en enero de 2016, con excepción del complejo de las semillas oleaginosas, donde los impuestos se reducirán gradualmente a partir de enero de 2018. En Indonesia y Malasia se mantuvieron los regímenes impositivos móviles para las exportaciones de aceite de palma.

En lo que respecta a las importaciones, los cambios más importantes se refieren a la reducción o suspensión de los derechos de importación para hacer frente a la escasez de suministros internos y controlar la inflación de los precios internos de los alimentos, con la India como el ejemplo más destacado. En cuanto a las medidas no arancelarias, China limitó temporalmente, por razones fitosanitarias, las importaciones del Canadá, mientras que Indonesia introdujo controles estatales a las importaciones de soja con objeto de promover la producción nacional de este producto.

Las negociaciones relativas a varios acuerdos comerciales bilaterales de amplio alcance y las iniciativas orientadas específicamente a los productos de semillas oleaginosas prosiguieron en 2016, con la participación de varias importantes naciones exportadoras/importadoras. En lo que concierne a las controversias comerciales bilaterales, la OMC intervino dos casos (relativos a las importaciones de biodiesel por la UE y de aceite de palma por la Federación de Rusia), y constató violaciones de las normas de la OMC y de los compromisos nacionales. Además, se generó una nueva controversia entre el Perú y la Argentina en relación con el comercio de biodiesel.

Con respecto a las normas alimentarias, dos países, el Canadá y Chile, impusieron el etiquetado obligatorio del contenido de grasas saturadas en los productos alimenticios, mientras que otros propusieron reglamentar estrictamente la presencia de grasas trans en los alimentos o prohibirla. En otras partes, se han aplicado varias otras medidas en materia de inocuidad de los alimentos, en particular instrumentos para luchar contra la adulteración de los aceites vegetales.

Con respecto a los OMG, China indicó que podría suavizar gradualmente la estricta postura contra los OMG adoptada en los años anteriores, añadiendo que podía considerar la posibilidad de desarrollar variedades de maíz y soja modificadas genéticamente. La India, que autorizó pruebas sobre el terreno con algunos cultivos modificados genéticamente en 2015, aprobó técnicamente una semilla de mostaza modificada geneticamente y desarrollada localmente tras llevar a cabo una evaluación de los posibles riegos sanitarios y ambientales. En otros países, las restricciones a la producción, el comercio y utilización de cultivos de OMG se mantuvieron como consecuencias de una mayor vigilancia pública. Los Estados Unidos decidieron (poniendo fin a extensos debates de política) introducir el etiquetado obligatorio de ingredientes de OMG en los productos alimenticios durante un período de dos años.

Bajo la presión de grupos de la sociedad civil, algunos gobiernos, principalmente de Asia sudoriental, aumentaron sus esfuerzos por imponer la adopción de prácticas de producción sostenible por parte de las empresas productoras de aceite de palma de sus respectivos países. Las medidas regulatorias relacionadas con el desarrollo del aceite de palma se concentraron en la conservación de los bosques y la prevención de incendios, la restauración de las turberas y la protección de los derechos de los pueblos indígenas y de los trabajadores de las plantaciones.

Sector oleaginosas: Cambios de políticas y de medidas del sector industrial - Compendio anual 2016 xv

MEDIDAS E INICIATIVAS DEL SECTOR INDUSTRIAL

Las normas del sector privado siguieron desempeñando un papel importante en moldear la economía mundial de semillas oleaginosas, aceites y harinas. En particular, las normas voluntarias del sector industrial relativas a las prácticas de producción sostenible para el aceite de palma y la soja siguieron desarrollándose en 2016, impulsadas por la profunda preocupación pública y la constante presión de grupos de la sociedad civil. En el caso del aceite de palma, la Mesa redonda sobre el aceite de palma sostenible (el principal órgano de certificación y establecimiento de normas del sector dirigido por la industria), además de lanzar un código voluntario más riguroso de producción, mejoró la trazabilidad de la comercialización certificada y reforzó sus requisitos de conformidad y mecanismos de control internos. Además, se informó de nuevos esfuerzos por mejorar el acceso de los pequeños productores a la certificación en varios países. Al mismo tiempo, grupos de la sociedad civil siguieron evaluando los métodos de producción de distintas empresas productoras de aceite de palma. Asimismo, cuestionaron la adhesión de los compradores, las instituciones de préstamos y otros interesados a sus propias políticas y compromisos en materia de sostenibilidad. En cuanto a las normas disponibles actualmente, algunas actores industriales solicitaron la adopción de criterios más rigurosos, mientras que otros se mostraron favorables a la aplicación de normas menos estrictas. En lo que se refiere al comercio, en 2016 la proporción del aceite de palma sostenible certificado comercializado a través de los mecanismos Book&Claim (es decir, los canales que contribuyen solo indirectamente a los sistemas de producción sostenibles) se redujo al 35 por ciento, lo que implica que hasta un 65 por ciento se vendió a través de cadenas de suministro físicas, en comparación con solo el 45 por ciento en 2015. Sin embargo, la demanda mundial de aceite de palma certificado por parte de los usuarios finales siguió situándose por debajo de los suministros disponibles, reduciendo realmente la rentabilidad de la certificación.

En comparación con el aceite de palma, el debate público sobre la producción sostenible de soja siguió siendo menos intenso, aunque prosiguieron las presiones sobre las empresas en 2016 para que proporcionaran soja de manera más responsable. Aunque los órganos nacionales e internacionales que certifican la producción de soja sostenible declararon un aumento de la producción y las ventas de soja certificada, la cuota global de mercado de los productos certificados siguió siendo reducida. Además, el mercado dependió en su mayor parte de los mecanismos Book&Claim y no de las cadenas de suministro físicas. En el Brasil, la moratoria del sector privado de compras de soja producida en tierras desbrozadas ilegalmente en la región amazónica se ha vuelto permanente (tras haberse renovado todos los años desde 2008).

Con respecto a los OMG, los esfuerzos de las empresas por separar los cultivos no modificados genéticamente de aquellos modificados genéticamente continuaron en 2016, reflejando el interés comercial para asegurar las primas asociadas a las ventas de productos sin OMG. Además, se tienen noticias de varias nuevas iniciativas emprendidas por fabricantes de alimentos para ofrecer productos sin OMG para atender las preferencias de los consumidores.

En lo que se refiere a los biocombustibles, en la UE los grupos de promoción ambiental siguieron cuestionando la capacidad del biodiesel basado en cultivos de reducir las emisiones de GEI. Entretanto, se informó de varias nuevas iniciativas industriales para reemplazar materia prima alimentaria con materia no alimentaria (principalmente sebo, aceite de cocina usado y otros desechos agrícolas), en especial en Europa. Además, en Asia sudoriental un número mayor de empresas ha comenzado ha producir energía a partir de desechos de coco y derivados de la extractora de aceite de palma.

Los esfuerzos de investigación y desarrollo llevados a cabo por la industria y el mundo académico en 2016 se concentraron en las siguientes esferas: i) control de enfermedades en el cultivo de soja; ii) métodos de refinado del aceite vegetal sin grasas trans; iii) técnicas para detectar adulteraciones en el aceite de oliva y optimización de los procesos de extracción del dicho aceite, y iv) desarrollo de nuevas variedades de semillas oleaginosas (entre otros, mediante técnicas de mejoramiento tradicionales libres de OMG), caracterizadas por mejores rendimientos y otros rasgos de interés económico o atributos sanitarios especiales.

Con respecto a los mercados internacionales, las empresas chinas consolidaron en mayor medida su presencia en los mercados internacionales de cereales y semillas oleaginosas, reduciendo de esta manera la dependencia nacional de los proveedores extranjeros y comerciantes de terceras partes. Unas compañías malayas de producción de aceite de palma, ante la escasez de tierras y mano de obra a que hacen frente, establecieron proyectos en Filipinas. En el Brasil las opciones de transporte a través del corredor de exportación del norte del país mejoraron considerablemente tras importantes inversiones privadas en infraestructura portuaria.

Con respecto a los mercados a término, la principal bolsa de productos básicos agrícolas de China consideró el lanzamiento de opciones de harina de soja, y el Chicago Mercantile Exchange (CME) con sede en Chicago se asoció con Bursa Malaysia y Thomson Reuters para añadir cuatro nuevos contratos de aceite de palma a sus actividades.

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agric

ultu

ral c

ampa

ign.

Th

e m

easu

re a

ims

at in

crea

sing

the

flow

of f

undi

ng to

war

d th

e pu

rcha

se o

f far

m e

quip

men

t and

oth

er

inve

stm

ents

in a

yea

r cha

ract

erize

d by

tigh

t cre

dit s

uppl

ies

and

risin

g bo

rrow

ing

cost

s (s

ee a

lso M

PPU

Ju

ne’1

6).

4AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Prod

uctio

n su

ppor

t

Chi

naM

aySo

ybea

nC

hina

is p

lann

ing

to e

xpan

d its

soy

bean

are

a ov

er th

e ne

xt fi

ve y

ears

, mos

tly a

t the

exp

ense

of l

ess

lucr

ativ

e m

aize

cul

tivat

ion,

offi

cial

sour

ces i

nfor

med

. The

stat

emen

t was

pre

cede

d by

the

anno

unce

men

t th

e co

untry

wou

ld a

band

on it

s st

ate

proc

urem

ent a

nd s

tock

pilin

g po

licy

for m

aize

, as

alre

ady

done

for

cotto

n, s

oybe

an a

nd ra

pese

ed. T

he g

over

nmen

t set

its

2020

targ

et fo

r soy

bean

pla

ntin

gs a

t 9.3

3 m

illion

he

ctar

es, w

hich

com

pare

s w

ith 6

.45

milli

on h

ecta

res

plan

ted

in 2

015.

The

are

a ex

pans

ion

wou

ld b

e co

ncen

trate

d in

regi

ons

whe

re s

oybe

ans

are

tradi

tiona

lly g

row

n. R

epor

tedl

y, th

e go

vern

men

t will

roll

out p

lans

to e

ncou

rage

farm

ers

to s

witc

h fro

m m

aize

to s

oybe

an c

ultiv

atio

n. In

vest

men

ts in

tech

nolo

gy

to im

prov

e yi

elds

and

spe

cific

sup

port

for s

oybe

an g

row

ers

are

envi

sage

d. A

vera

ge s

oybe

an y

ield

s ar

e pr

ojec

ted

to ri

se fr

om c

urre

ntly

1.8

tonn

es p

er h

ecta

re to

ove

r 2 to

nnes

per

hec

tare

, whi

ch, c

ombi

ned

with

the

pla

nned

are

a ex

pans

ion,

wou

ld b

oost

the

cou

ntry

’s ou

tput

to

19 m

illion

ton

nes

by 2

020

– so

me

60 to

70

perc

ent a

bove

the

curre

nt le

vel.

The

gove

rnm

ent i

nten

ds to

pro

mot

e th

e cu

ltiva

tion

of

high

-pro

tein

non

-GM

soy

bean

var

ietie

s so

as

to m

eet r

isin

g do

mes

tic d

eman

d fo

r pro

tein

-ric

h fo

od.

Ther

efor

e, lo

cal p

rodu

ctio

n w

ill co

ntin

ue t

o be

dev

oted

to

edib

le p

urpo

ses

(via

the

tra

nsfo

rmat

ion

of b

eans

into

tem

peh,

tofu

, soy

milk

and

sim

ilar p

rodu

cts)

, whe

reas

dom

estic

dem

and

for s

oyoi

l and

so

ymea

l will

cont

inue

to b

e sa

tisfie

d vi

a th

e cr

ushi

ng o

f im

porte

d be

ans.

Priv

ate

anal

ysts

com

men

ted

that

soy

bean

retu

rns

may

not

be

suffi

cien

tly a

ttrac

tive

to a

chie

ve th

e pl

anne

d sh

ift in

pla

ntin

gs, c

iting

hi

gh d

omes

tic la

bour

and

inpu

t cos

ts a

s w

ell a

s th

e da

mpe

ning

effe

ct o

f che

ap s

oybe

an im

ports

on

dom

estic

pric

es. P

lant

ing

deci

sion

s ar

e lik

ely

to b

e in

fluen

ced

by v

ario

us ty

pes

of s

ubsi

dies

, esp

ecia

lly

dire

ct p

aym

ents

to fa

rmer

s, w

hich

are

exp

ecte

d to

repl

ace

crop

pro

cure

men

t sys

tem

s.

Tabl

e 1.

G

over

nmen

t pol

icie

s im

plem

ente

d in

201

6

2 Oilcrops complex: Policy changes and industry measures - Annual compendium 2016

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

5AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Prod

uctio

n su

ppor

t

Chi

naO

ctob

erO

ilcro

psAs

a m

eans

to

curb

dom

estic

mai

ze s

uppl

ies,

far

mer

s in

Chi

na’s

mai

n gr

ain

expo

rting

pro

vinc

e H

eilo

ngjia

ng w

ill re

ceiv

e su

bsid

ies

of C

NY

150/

mu

(USD

330

/ha)

for r

otat

ing

mai

ze c

rops

with

soy

bean

. To

geth

er w

ith th

e na

tion-

wid

e so

ybea

n ta

rget

pric

e of

CN

Y 4

800

per t

onne

(USD

705

) tha

t is

appl

ied

sinc

e 20

14, t

he m

easu

re is

like

ly to

sig

nific

antly

stim

ulat

e so

ybea

n pl

antin

gs in

Hei

long

jiang

nex

t yea

r, th

us s

uppo

rting

gov

ernm

ent e

fforts

to m

anag

e th

e co

untry

’s ov

ersu

pply

of m

aize

. Und

er th

e pr

ovin

cial

pr

ogra

mm

e, w

hich

will

be e

nact

ed o

n a

trial

bas

is o

ver t

he n

ext 3

–5 y

ears

, an

estim

ated

0.4

3 m

illion

ha

of fo

rmer

mai

ze a

rea

are

expe

cted

to b

enefi

t fro

m s

ubsi

dies

, whi

ch s

houl

d tra

nsla

te in

to a

16

perc

ent

expa

nsio

n in

Hei

long

jiang

’s so

y ar

ea. T

he g

over

nmen

t als

o co

nfirm

ed it

s na

tiona

l pro

duct

ion

targ

ets

for t

he m

ain

oils

eed

crop

s in

the

year

202

0: 1

8.9

milli

on to

nnes

for s

oybe

ans,

16.

2 m

illion

tonn

es fo

r ra

pese

ed, a

nd 1

8.7

milli

on to

nnes

for g

roun

dnut

– w

hich

com

pare

s to

out

put l

evel

s of

, res

pect

ivel

y, 11

.6 m

illion

, 14.

9 m

illion

, and

16.

4 m

illion

tonn

es in

201

5 (s

ee a

lso M

PPU

Jun

e’16

). Th

e fig

ures

con

firm

th

at th

e st

rong

est g

row

th is

env

isag

ed fo

r soy

bean

s, b

ased

on

an e

xpan

sion

in p

lant

ings

at t

he e

xpen

se

of m

aize

.

6AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Prod

uctio

n su

ppor

t

Indi

aJa

nuar

yAg

ricul

tura

l co

mm

oditi

esIn

Jan

uary

201

5, In

dia’

s cen

tral g

over

nmen

t app

rove

d a

new

cro

p in

sura

nce

sche

me,

whi

ch is

to re

plac

e th

e th

ree

exis

ting

natio

nal f

arm

insu

ranc

e pr

ogra

mm

es. T

he m

ajor

cro

ps in

sure

d w

ill be

oils

eeds

, ric

e,

whe

at, p

ulse

s an

d co

arse

gra

ins.

The

new

sch

eme

is s

uppo

sed

to b

e in

pla

ce b

y Ju

ne, i

n tim

e fo

r the

20

16 K

harif

sea

son.

By

2018

-19,

the

fede

ral b

udge

t for

cro

p in

sura

nce

is s

et to

clim

b to

INR

77.5

billi

on

(USD

1.1

4 bi

llion)

, mor

e th

an d

oubl

e th

e cu

rrent

spe

ndin

g le

vel.

The

incr

ease

in o

utla

ys w

ill be

use

d to

sub

sidi

ze fa

rm in

sura

nce

prem

ium

s by

alm

ost 8

0 pe

rcen

t, up

from

the

curre

nt 4

5-70

per

cent

. Ove

r th

e ne

xt tw

o-to

-thre

e ye

ars,

the

gove

rnm

ent h

opes

to ra

ise

the

area

cov

ered

by

the

prog

ram

me

from

23

per

cent

to 5

0 pe

rcen

t of t

otal

are

a cr

oppe

d. P

artic

ipat

ing

farm

ers

will

be e

xpec

ted

to p

ay p

rem

ium

ra

tes

of 2

per

cent

for K

harif

cro

ps a

nd o

f 1.5

per

cent

for R

abi c

rops

, whi

ch c

ompa

res

to 3

.5–8

per

cent

un

der t

he e

xist

ing

prog

ram

mes

and

to m

arke

t-bas

ed ra

tes

of 1

0–12

per

cent

for K

harif

cro

ps a

nd o

f 8–

10 p

erce

nt fo

r Rab

i cro

ps. B

esid

es lo

w p

rem

ium

s, n

ew m

echa

nism

s ar

e pl

anne

d to

ens

ure

that

cro

p lo

sses

are

ass

esse

d an

d cl

aim

s se

ttled

in a

tim

ely

man

ner.

Mor

eove

r, it

is e

nvis

aged

to e

xpan

d th

e ra

nge

of ri

sks

cove

red,

to re

mov

e th

e ex

istin

g ca

ps o

n su

ms

insu

red

and

to im

prov

e th

e pr

oces

s of

de

term

inin

g cr

op lo

sses

by c

arry

ing

out l

ocal

leve

l ass

essm

ents

. The

gov

ernm

ent’s

initi

ativ

e is

sign

ifica

nt

as th

e co

untry

is fa

cing

dro

ught

for t

he s

econ

d st

raig

ht y

ear d

ue to

poo

r mon

soon

rain

s –

a ca

use

of

maj

or d

istre

ss to

farm

ers.

Inde

pend

ent o

bser

vers

hav

e hi

ghlig

hted

the

mul

tiple

cha

lleng

es in

volv

ed in

pr

ovid

ing

insu

ranc

e to

sm

all a

nd m

argi

nal f

arm

ers,

who

cul

tivat

e pl

ots

of le

ss th

an 2

hec

tare

s.

7AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Prod

uctio

n su

ppor

t

Indi

aFe

brua

ryC

opra

In I

ndia

, th

e 20

16 p

rocu

rem

ent

pric

es f

or m

illing

and

bal

l co

pra

have

bee

n se

t at

, re

spec

tivel

y, IN

R 59

500

(USD

888

) and

INR

62 4

00 (U

SD 9

32) p

er to

nne

– up

7 p

erce

nt c

ompa

red

to la

st y

ear.

8AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Prod

uctio

n su

ppor

t

Indi

aJu

neKh

arif

oilc

rops

The

gove

rnm

ent

of I

ndia

rai

sed

the

min

imum

sup

port

pric

es (

MSP

) fo

r al

l 201

6/17

Kha

rif s

easo

n cr

ops,

effe

ctiv

e 1s

t Oct

ober

201

6. P

ulse

s an

d oi

lsee

d cr

ops

will

enjo

y a

spec

ial b

onus

rese

rved

for

crop

s ch

arac

teriz

ed b

y w

iden

ing

dom

estic

sup

ply

defic

its. F

or u

nshe

lled

grou

ndnu

ts, t

he n

ew M

SP

(incl

udin

g th

e bo

nus)

am

ount

s to

INR

42 2

00 (U

SD 6

28) p

er to

nne

– up

5 p

erce

nt fr

om la

st s

easo

n.

The

corre

spon

ding

val

ues

for y

ello

w a

nd b

lack

soy

bean

, sun

flow

erse

ed, n

iger

seed

and

ses

ame

are,

re

spec

tivel

y: I

NR

27 7

50 (U

SD 4

13),

up 7

per

cent

; IN

R 39

500

(USD

588

), up

4 p

erce

nt; I

NR

38 2

50

(USD

569

), up

5 p

erce

nt; a

nd IN

R 50

000

(USD

744

), up

6 p

erce

nt. F

or c

ompa

rison

, the

sup

port

pric

es

for p

ulse

s, p

addy

, mai

ze a

nd c

otto

n ha

ve b

een

rais

ed b

y, re

spec

tivel

y, 8

perc

ent,

4 pe

rcen

t, 3

perc

ent,

and

1 pe

rcen

t.

Oilcrops complex: Policy changes and industry measures - Annual compendium 2016 3

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

9AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Prod

uctio

n su

ppor

t

Indi

aN

ovem

ber

Agric

ultu

ral

com

mod

ities

Indi

a’s

cent

ral g

over

nmen

t has

take

n st

eps

to p

rovi

de re

lief t

o fa

rmer

s an

d sm

all t

rade

rs o

f agr

icul

tura

l go

od a

ffect

ed b

y its

dec

isio

n to

ban

the

circ

ulat

ion

of s

ome

bank

not

es. I

n pa

rticu

lar,

the

coun

try’s

Nat

iona

l Ban

k fo

r Agr

icul

ture

and

Rur

al D

evel

opm

ent (

NAB

ARD)

was

inst

ruct

ed to

pro

vide

add

ition

al

loan

s to

ena

ble

farm

ers

to b

uy s

eed

and

ferti

lizer

s fo

r the

cul

tivat

ion

of w

inte

r-sow

n cr

ops,

incl

udin

g ra

pe a

nd m

usta

rdse

ed. O

ther

mea

sure

s ta

ken

incl

ude

the

rela

xatio

n of

cas

h w

ithdr

awal

nor

ms,

the

pe

rmis

sion

to p

urch

ase

seed

s w

ith o

utla

wed

ban

k no

tes

at s

elec

ted

gove

rnm

ent s

tore

s, a

nd e

xten

ded

time

limits

for t

he p

aym

ent o

f cro

p in

sura

nce

prem

ium

s.

10AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Prod

uctio

n su

ppor

t

Indi

aN

ovem

ber

Rabi

oilc

rops

The

Gov

ernm

ent o

f Ind

ia r

aise

d th

e m

inim

um s

uppo

rt pr

ices

(MSP

) for

win

ter-g

row

n (R

abi)

2016

/17

crop

s. T

he M

SP fo

r rap

esee

d –

incl

udin

g a

spec

ial b

onus

rese

rved

for c

rops

cha

ract

erize

d by

dom

estic

su

pply

defi

cits

(see

MPP

U J

ul’1

6) –

has

bee

n ra

ised

to IN

R 3

700

per q

uint

al (U

SD 5

48 p

er to

nne)

, up

10.4

per

cent

from

last

yea

r’s le

vel.

11AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Prod

uctio

n su

ppor

t

Indi

aDe

cem

ber

Gro

undn

utTh

e st

ate

gove

rnm

ent

of A

ndhr

a Pr

ades

h (In

dia)

info

rmed

tha

t it

wou

ld c

over

insu

ranc

e cl

aim

s by

fa

rmer

s w

hose

gro

undn

ut c

rop

has

been

dam

aged

by

adve

rse

wea

ther

dur

ing

the

2016

Kha

rif s

easo

n.

Nea

rly 7

00 th

ousa

nd fa

rmer

s ar

e ex

pect

ed to

ben

efit f

rom

the

mea

sure

. Rep

orte

dly,

in A

ndhr

a Pr

ades

h,

less

than

one

third

of t

he a

rea

plan

ted

with

gro

undn

ut c

ould

be

harv

este

d du

e to

lack

of r

ainf

all.

12AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Prod

uctio

n su

ppor

t

Indi

aDe

cem

ber

Rabi

oilc

rops

In In

dia,

min

imum

sup

port

pric

es fo

r Rab

i cro

ps (w

hich

wer

e so

wn

in N

ovem

ber/D

ecem

ber 2

016

for

harv

est d

urin

g th

e fir

st h

alf o

f 201

7) h

ave

been

rais

ed fr

om la

st s

easo

n’s

leve

l. Fo

r oilc

rops

, the

y w

ere

set a

bout

10

perc

ent h

ighe

r, at

INR

3 70

0 pe

r qui

ntal

(USD

544

per

tonn

e) fo

r bot

h ra

pe/m

usta

rdse

ed

and

saffl

ower

seed

– in

clud

ing

a bo

nus

that

is g

rant

ed to

oils

eed

crop

s to

ince

ntiv

ize th

eir c

ultiv

atio

n an

d th

us c

urb

the

coun

try’s

relia

nce

on im

ports

. For

com

paris

on, t

he s

uppo

rt pr

ices

for p

ulse

s, w

heat

and

ba

rley

have

bee

n in

crea

sed

by, r

espe

ctiv

ely,

14–1

6 pe

rcen

t, 7

perc

ent a

nd 8

per

cent

.

13AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Prod

uctio

n su

ppor

t

Uga

nda

Augu

stAg

ricul

tura

l co

mm

oditi

esTh

e U

gand

an G

over

nmen

t ha

s la

unch

ed a

sub

sidi

zed

crop

ins

uran

ce s

chem

e to

ass

ist

farm

ers.

Re

porte

dly,

depe

ndin

g on

farm

size

and

loca

tion,

30

– 80

per

cent

of t

he in

sura

nce

prem

ium

s w

ill be

co

vere

d by

the

stat

e. T

he s

chem

e, w

hich

will

be o

pera

ted

thro

ugh

a pu

blic

-priv

ate

partn

ersh

ip b

etw

een

the

Gov

ernm

ent a

nd th

e co

untry

’s in

sure

rs a

ssoc

iatio

n, is

exp

ecte

d to

lim

it go

vern

men

t pro

visi

on o

f ad

-hoc

ass

ista

nce

to fa

rmer

s, h

elp

impr

ove

farm

ers’

acc

ess

to c

redi

t, an

d in

crea

se h

ouse

hold

food

se

curit

y.

14AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Prod

uctio

n su

ppor

t

Uni

ted

Stat

esO

ctob

erAg

ricul

tura

l co

mm

oditi

esTh

e U

SDA

info

rmed

tha

t m

any

of t

he 1

.7 m

illion

far

ms

that

enr

olle

d in

eith

er t

he A

gric

ultu

re R

isk

Cov

erag

e (A

RC) o

r Pr

ice

Loss

Cov

erag

e (P

LC) p

rogr

amm

es in

trodu

ced

in 2

014

(see

MPP

U F

eb’1

4)

will

rece

ive

safe

ty-n

et p

aym

ents

due

to m

arke

t dow

ntur

ns d

urin

g th

e 20

15 c

rop

year

. USD

A ex

pect

s to

m

ake

mor

e th

an U

SD 7

billi

on in

pay

men

ts to

com

pens

ate

farm

ers

for d

ecre

ases

in re

venu

es o

r cro

p pr

ices

, whi

ch a

mou

nts

to o

ver 1

0 pe

rcen

t of t

he p

roje

cted

201

6 ne

t far

m in

com

e. F

or c

ompa

rison

, in

2015

, pay

men

ts u

nder

the

two

prog

ram

mes

tota

lled

USD

5.2

billi

on. I

n bo

th y

ears

, a h

igh

perc

enta

ge o

f gr

ower

s of s

oybe

ans,

gro

undn

ut a

nd o

ther

oils

eeds

hav

e pa

rtici

pate

d in

the

conc

erne

d ris

k man

agem

ent

prog

ram

mes

.

15AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Sect

or d

evel

opm

ent

mea

sure

s

East

& S

outh

ern

Afric

a/

Uni

ted

King

dom

May

Soyb

ean

The U

K G

over

nmen

t laun

ched

a ‘S

oybe

an C

halle

nge F

und’

to su

ppor

t the

dev

elop

men

t and

impr

ovem

ent

of re

gion

al so

ybea

n va

lue

chai

ns, in

clud

ing

the

prom

otio

n of

regi

onal

trad

e. T

he F

und

back

s par

tner

ship

s th

at h

elp

addr

ess

mar

ket f

ailu

res

in in

put/s

ervi

ce m

arke

ts, s

tora

ge, m

arke

t coo

rdin

atio

n m

echa

nism

and

po

licy

regu

latio

n. A

ssis

tanc

e is

targ

eted

at p

rivat

e se

ctor

org

aniza

tions

or p

rivat

e se

ctor

-led

cons

ortia

th

at w

ork

toge

ther

with

sm

all-s

cale

farm

ers

in th

e pr

oduc

tion

and

mar

ketin

g of

soy

bean

s.

4 Oilcrops complex: Policy changes and industry measures - Annual compendium 2016

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

16AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Sect

or d

evel

opm

ent

mea

sure

s

Ango

laJu

neO

il pa

lm

The

Gov

ernm

ent

of A

ngol

a ea

rmar

ked

five

of t

he c

ount

ry’s

prov

ince

s fo

r th

e pr

omot

ion

of o

il pa

lm

culti

vatio

n, in

form

ing

that

a n

umbe

r of d

etai

led

inve

stm

ent p

ropo

sals

are

alre

ady

unde

r con

side

ratio

n.

Onc

e an

impo

rtant

pro

duce

r and

exp

orte

r of p

alm

oil,

the

coun

try s

till c

an a

vail

of s

peci

alize

d pa

lm

rese

arch

sta

tions

, go

vern

men

t offi

cial

s sa

id.

Furth

erm

ore,

Ang

ola

is c

oope

ratin

g w

ith r

esea

rch

inst

itutio

ns in

the

Philip

pine

s, M

alay

sia

and

Indo

nesi

a, a

nd th

ere

are

plan

s to

sw

ap g

enet

ic m

ater

ial

with

thes

e co

untri

es to

impr

ove

Ango

la’s

palm

sto

ck.

17AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Sect

or d

evel

opm

ent

mea

sure

s

Can

ada

Febr

uary

Rape

seed

Fede

ral f

undi

ng w

ill be

mad

e av

aila

ble

thro

ugh

the

Can

ola

Cou

ncil

of C

anad

a to

hel

p dr

ive

inno

vatio

n an

d pr

ofita

bilit

y in

the

coun

try’s

rape

seed

indu

stry

. Inv

estm

ent p

roje

cts

will

be d

esig

ned

to im

prov

e yi

elds

and

to p

ositi

on th

e co

untry

’s ex

port-

orie

nted

sec

tor f

or fu

ture

gro

wth

and

sus

tain

abilit

y. Re

sear

ch

is e

xpec

ted

to fo

cus

on d

isea

se c

ontro

l, pl

ant e

stab

lishm

ent a

nd fe

rtilit

y m

anag

emen

t.

18AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Sect

or d

evel

opm

ent

mea

sure

s

Gha

naJu

lyO

il pa

lm

Repo

rtedl

y, in

Gha

na, t

he g

over

nmen

t is

cons

ider

ing

to a

ppro

ve th

e es

tabl

ishm

ent o

f an

oil p

alm

boa

rd.

The

boar

d w

ould

be

task

ed to

regu

late

and

cre

ate

a co

nduc

ive

envi

ronm

ent f

or th

e gr

owth

of t

he o

il pa

lm s

ub-s

ecto

r. Th

e bo

dy w

ould

offe

r a p

latfo

rm fo

r for

mal

inte

ract

ions

bet

wee

n th

e go

vern

men

t and

th

e pr

ivat

e se

ctor

, esp

ecia

lly re

gard

ing

the

impl

emen

tatio

n of

rele

vant

pol

icie

s, in

clud

ing

mea

sure

s to

en

sure

env

ironm

enta

lly s

usta

inab

le g

row

th. I

n th

is re

gard

, the

gov

ernm

ent r

eite

rate

d its

com

mitm

ent t

o pr

otec

t the

cou

ntry

’s tro

pica

l for

ests

whi

le d

evel

opin

g th

e oi

l pal

m s

ecto

r. G

hana

is o

ne o

f nin

e co

untri

es

parti

cipa

ting

in th

e Af

rica

Palm

Oil

Initi

ativ

e (A

POI),

a m

ulti-

stak

ehol

der

prog

ram

me

laun

ched

by

the

Trop

ical

For

est

Allia

nce

to h

elp

trans

form

the

pal

m o

il se

ctor

into

a s

usta

inab

le d

river

of l

ong-

term

, lo

w-c

arbo

n de

velo

pmen

t in

the

regi

on –

in a

way

that

is s

ocia

lly b

enefi

cial

and

pro

tect

s tro

pica

l for

ests

.

19AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Sect

or d

evel

opm

ent

mea

sure

s

Indi

aJa

nuar

yO

ilcro

psIn

dia

anno

unce

d th

e la

unch

of

dedi

cate

d pr

ogra

mm

es t

o pr

omot

e th

e pr

oduc

tion

of o

ilsee

ds a

nd

puls

es a

cros

s th

e co

untry

. The

new

initi

ativ

e is

sup

pose

d to

be

finan

ced

join

tly w

ith s

tate

gov

ernm

ents

. De

tails

hav

e ye

t to

be re

leas

ed. T

he la

st c

ompr

ehen

sive

, cou

ntry

-wid

e, s

uppo

rt pr

ogra

mm

e fo

r oilc

rops

w

as la

unch

ed b

ack

in 2

013

(see

MPP

U N

ov.’1

3), a

lthou

gh a

num

ber

of s

mal

ler

initi

ativ

es f

ocus

ing

on in

divi

dual

oilc

rops

, suc

h as

oil

palm

, oliv

e tre

e an

d su

nflow

erse

ed, h

ave

been

impl

emen

ted

mor

e re

cent

ly. D

urin

g th

e la

st 1

5 ye

ars,

dom

estic

dem

and

for o

ilcro

p pr

oduc

ts, e

spec

ially

edi

ble

oil,

expa

nded

co

nsid

erab

ly fa

ster

than

oilc

rop

prod

uctio

n, le

adin

g to

ste

ep ri

ses

in In

dia’

s im

ports

.

20AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Sect

or d

evel

opm

ent

mea

sure

s

Indi

aFe

brua

ryC

ocon

utIn

dia’

s C

ocon

ut D

evel

opm

ent

Boar

d w

ill co

ntrib

ute

publ

ic fu

nds

to 5

8 co

conu

t pr

oces

sing

pro

ject

s in

the

stat

es o

f Ker

ala

and

Karn

atak

a. T

he p

roje

cts

rela

te to

coc

onut

oil

man

ufac

turin

g, p

roce

ssin

g of

ne

era

(coc

onut

inflo

resc

ence

sap

), pr

oduc

tion

of fl

avou

red

coco

nut j

uice

, coc

onut

wat

er p

rese

rvat

ion

and

pack

agin

g, d

esic

cate

d co

conu

t pow

der p

roce

ssin

g, v

irgin

coc

onut

oil p

rodu

ctio

n, c

opra

dry

ing

and

ball-

copr

a m

akin

g, a

nd p

rodu

ctio

n of

act

ivat

ed c

arbo

n.

21AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Sect

or d

evel

opm

ent

mea

sure

s

Indi

aJu

neC

ocon

utTh

e C

ocon

ut D

evel

opm

ent B

oard

of I

ndia

info

rmed

that

it w

ill ex

tend

fina

ncia

l ass

ista

nce

to fa

rmer

s in

Ta

mil

Nad

u st

ate.

The

mea

sure

is a

imed

at r

epla

cing

sen

ile, d

isea

se in

fect

ed a

nd u

npro

duct

ive

palm

s,

and

reju

vena

ting

exis

ting

trees

thr

ough

inte

grat

ed m

anag

emen

t pr

actic

es. S

ubsi

dies

will

amou

nt t

o IN

R 1

000

(USD

15)

for

the

cut

ting/

rem

oval

of

unpr

oduc

tive

palm

s an

d IN

R 17

500

(USD

261

) per

he

ctar

e fo

r rej

uven

atio

n m

easu

res.

In a

dditi

on, 5

0 pe

rcen

t of s

eedl

ing

cost

s w

ill be

cov

ered

.

22AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Sect

or d

evel

opm

ent

mea

sure

s

Indi

aJu

lyO

live

tree

In In

dia,

the

Gov

ernm

ent o

f Raj

asth

an h

as s

et u

p an

oliv

e oi

l cru

shin

g/re

finin

g pl

ant a

nd s

tarte

d pl

antin

g ol

ive

sapl

ings

impo

rted

from

Ita

ly, S

pain

, Is

rael

and

els

ewhe

re o

n st

ate-

owne

d fie

lds.

Rep

orte

dly,

Raja

stha

n’s

agro

-clim

atic

con

ditio

ns a

re f

ully

sui

tabl

e fo

r ol

ive

culti

vatio

n. T

he s

tate

-leve

l pro

ject

is

mea

nt to

hel

p re

duce

the

natio

n’s

heav

y de

pend

ence

on

impo

rted

edib

le o

ils (s

ee a

lso M

PPU

Sep

.’15)

. Ac

cord

ing

to p

rivat

e se

ctor

repr

esen

tativ

es, a

cces

s to

adv

ance

d pr

oces

sing

tech

nolo

gy w

ill be

crit

ical

fo

r the

indu

stry

’s de

velo

pmen

t.

Oilcrops complex: Policy changes and industry measures - Annual compendium 2016 5

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

23AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Sect

or d

evel

opm

ent

mea

sure

s

Indi

aAu

gust

Coc

onut

The

Indi

an C

ocon

ut D

evel

opm

ent B

oard

will

supp

ort 1

8 pr

ojec

ts w

orth

INR

128

milli

on (U

SD 1

.9 m

illion

) to

impr

ove

proc

essi

ng a

nd p

rodu

ct d

iver

sific

atio

n –

and

henc

e va

lue

addi

tion

– in

the

coco

nut s

ecto

r. Th

e bo

ard’

s to

tal fi

nanc

ial c

ontri

butio

n w

ill am

ount

to IN

R 5.

2 m

illion

(USD

78

thou

sand

). Th

e pr

ojec

ts

will

focu

s on

the

prod

uctio

n of

cop

ra, d

esic

cate

d co

conu

t pow

der,

virg

in c

ocon

ut o

il and

oth

er c

ocon

ut-

base

d fo

ods

as w

ell a

s ch

arco

al.

24AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Sect

or d

evel

opm

ent

mea

sure

s

Indi

aDe

cem

ber

Oil

palm

In

Indi

a, d

istri

ct o

ffici

als

of A

runa

chal

Pra

desh

Sta

te e

ncou

rage

d fa

rmer

s to

take

up

palm

oil

culti

vatio

n an

d an

noun

ced

the

follo

win

g pu

blic

-priv

ate

supp

ort

mea

sure

s:

subs

idie

s to

cov

er p

lant

atio

n an

d m

aint

enan

ce c

osts

; inc

entiv

es fo

r pur

chas

ing

pum

ping

equ

ipm

ent;

assi

stan

ce fo

r int

ercr

oppi

ng; a

nd

the

esta

blis

hmen

t of l

ocal

cen

tres

for t

he c

olle

ctio

n of

oil

palm

frui

t bru

nche

s.

25AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Sect

or d

evel

opm

ent

mea

sure

s

Indi

aDe

cem

ber

Coc

onut

Und

er p

lans

to

revi

ve t

he c

ocon

ut in

dust

ry in

Ker

ala

Stat

e (In

dia)

, the

loca

l gov

ernm

ent

inte

nds

to

laun

ch a

cam

paig

n to

hig

hlig

ht th

e he

alth

ben

efits

of c

ocon

ut o

il. R

epor

tedl

y, du

e to

mis

conc

eptio

ns,

cons

umer

s ar

e in

crea

sing

ly s

witc

hing

to

othe

r oi

ls s

uch

as s

unflo

wer

and

pal

m o

il. T

o di

vers

ify t

he

loca

l mar

ket f

or c

ocon

ut p

rodu

cts,

the

gove

rnm

ent w

ill al

so s

uppo

rt th

e pr

oduc

tion

of v

alue

-add

ed

prod

ucts

suc

h as

nee

ra, a

sw

eet s

ap e

xtra

cted

from

the

inflo

resc

ence

of t

he c

ocon

ut p

alm

that

is u

sed

to p

repa

re h

ealth

drin

ks a

nd o

ther

food

pro

duct

s. F

urth

erm

ore,

the

stat

e an

noun

ced

a la

rge

repl

antin

g pr

ogra

mm

e to

rep

lace

age

d an

d ai

ling

palm

s w

ith d

isea

se-re

sist

ant,

high

-yie

ldin

g dw

arf

varie

ties.

M

oreo

ver,

fragm

ente

d la

ndho

ldin

gs w

ith c

ocon

ut p

alm

s w

ill be

gro

uped

into

clu

ster

s to

allo

w m

ore

effici

ent c

rop

man

agem

ent.

26AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Sect

or d

evel

opm

ent

mea

sure

s

Indo

nesi

aM

ayC

ocon

utTh

e go

vern

men

t of I

ndon

esia

pla

ns to

dev

ote

mor

e at

tent

ion

and

reso

urce

s to

max

imizi

ng re

turn

s in

th

e co

untry

’s co

conu

t ind

ustry

so

as to

fully

tap

the

oppo

rtuni

ties

offer

ed b

y lo

cal a

nd g

loba

l mar

kets

, a

gove

rnm

ent

offici

al s

aid.

Det

ails

on

plan

ned

mea

sure

s w

ere

not

prov

ided

. To

end

the

stag

natio

n in

dom

estic

pro

duct

ion

and

proc

essi

ng,

indu

stry

rep

rese

ntat

ives

rec

omm

ende

d to

con

side

r pa

lm

reju

vena

tion

prog

ram

mes

to

impr

ove

prod

uctiv

ity le

vels

, as

wel

l as

a m

orat

oriu

m o

n ra

w c

ocon

ut

expo

rts to

stim

ulat

e lo

cal p

rodu

ctio

n of

val

ue-a

dded

pro

duct

s fo

r dom

estic

con

sum

ptio

n or

exp

ort.

27AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Sect

or d

evel

opm

ent

mea

sure

s

Indo

nesi

aM

ayO

il pa

lm

The

Indo

nesi

an O

il Pa

lm E

stat

e Fu

nd –

the

sta

te a

genc

y se

t up

in A

ugus

t 20

15 t

o co

llect

the

levy

of

USD

50

for

each

ton

ne o

f cru

de p

alm

oil

expo

rted

– re

leas

ed ID

R 6.

75 b

illion

(USD

505

000

) to

supp

ort

smal

lhol

der

oil

palm

rep

lant

ing

(see

also

MPP

U O

ct.’1

5).

The

fund

s ar

e pa

rt of

a m

ulti-

year

gov

ernm

ent p

rogr

amm

e w

orth

IDR

52 b

illion

(USD

3.9

milli

on).

The

first

rele

ase

will

be u

sed

to

subs

idize

farm

ers

in R

iau

prov

ince

(Sum

atra

) tak

ing

up lo

ans

to re

plac

e ag

ing

palm

s w

ith n

ew o

nes.

Th

e pr

ogra

mm

e is

rese

rved

for f

arm

ers

with

pla

ntat

ions

of l

ess

than

4 h

ecta

res,

whi

ch, i

n In

done

sia,

ac

coun

t fo

r ap

prox

imat

ely

40 p

erce

nt o

f tot

al p

alm

oil

outp

ut. R

epor

tedl

y, th

e go

vern

men

t pl

ans

to

supp

ort t

he re

plan

ting

of 1

00 0

00 h

ecta

res

per y

ear.

Indo

nesi

a’s

oil p

alm

indu

stry

has

exp

erie

nced

a

virtu

al s

tagn

atio

n in

ave

rage

yie

lds

durin

g th

e la

st 1

0–20

yea

rs, d

ue to

the

agin

g of

pal

ms.

28AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Sect

or d

evel

opm

ent

mea

sure

s

Paci

fic re

gion

/ Eu

rope

an U

nion

Oct

ober

Coc

onut

A re

gion

al in

itiat

ive

aim

ed a

t (i)

impr

ovin

g th

e co

mpe

titiv

enes

s of

sm

all p

rodu

cers

in th

e Pa

cific

coc

onut

in

dust

ry, (

ii) en

hanc

ing

regi

onal

pol

icy

inte

grat

ion,

(iii)

stre

ngth

enin

g lin

ks in

loca

l val

ue c

hain

s, a

nd (i

v)

supp

ortin

g ca

paci

ty b

uild

ing

has

been

laun

ched

by

the

Paci

fic C

omm

unity

(SPC

) tog

ethe

r w

ith t

he

Euro

pean

Uni

on. R

epor

tedl

y, th

e th

ree-

year

, 3.5

milli

on E

uro

(USD

3.8

milli

on) p

roje

ct, w

ill st

art w

ith th

e im

plem

enta

tion

of p

ilot p

roje

cts

in S

amoa

and

Van

uatu

. Und

er th

e in

itiat

ive,

trai

ning

and

aw

aren

ess

prog

ram

mes

will

be d

evel

oped

, al

ong

with

a m

anua

l on

risk

man

agem

ent

and

miti

gatio

n to

ols

for

farm

ers,

pro

cess

ors

and

othe

r sta

keho

lder

s.

6 Oilcrops complex: Policy changes and industry measures - Annual compendium 2016

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

29AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Sect

or d

evel

opm

ent

mea

sure

s

Paki

stan

Janu

ary

Oliv

e oi

l Fo

llow

ing

past

effo

rts b

y Pa

kist

an’s

Agric

ultu

ral R

esea

rch

Cou

ncil

to p

rom

ote

oliv

e oi

l pro

duct

ion

acro

ss th

e co

untry

(see

MPP

U N

ov.’1

4 &

Oct

.’15)

, las

t mon

th th

e pr

ovin

ce o

f Pun

jab

laun

ched

a p

lan

for t

he d

evel

opm

ent o

f oliv

e tre

e cu

ltiva

tion.

The

pro

vinc

e is

sai

d to

fully

mee

t the

requ

ired

agro

-clim

atic

co

nditi

ons.

The

pro

vinc

ial p

lan

incl

udes

rese

arch

act

iviti

es o

n yi

eld

max

imiza

tion

as w

ell a

s aw

aren

ess

and

train

ing

prog

ram

mes

on

culti

vatio

n te

chni

ques

and

on

the

prod

uctio

n of

val

ue a

dded

pro

duct

s.

30AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Sect

or d

evel

opm

ent

mea

sure

s

Paki

stan

Augu

stO

live

oil

As p

art o

f a fi

ve-y

ear p

rogr

amm

e la

unch

ed e

arlie

r thi

s ye

ar in

Pak

ista

n’s

Punj

ab P

rovi

nce

to p

rom

ote

oliv

e oi

l pro

duct

ion

(see

MPP

U F

eb.’1

6), p

rovi

ncia

l aut

horit

ies

dist

ribut

ed –

free

of c

harg

e –

two

milli

on

oliv

e sa

plin

gs to

farm

ers

in th

e re

gion

of P

otho

har.

Bene

ficia

ries

will

also

ben

efit f

rom

trai

ning

act

iviti

es

on o

live

grov

e m

anag

emen

t and

fina

ncia

l sup

port

for w

ater

sou

rce

deve

lopm

ent a

nd d

rip ir

rigat

ion.

31AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Sect

or d

evel

opm

ent

mea

sure

s

Philip

pine

sM

ayC

ocon

utTh

e G

over

nmen

t of t

he P

hilip

pine

s al

loca

ted

PHP

1.29

billi

on (U

SD 2

8 m

illion

) to

the

coun

try’s

Coc

onut

Au

thor

ity t

o su

ppor

t th

e im

plem

enta

tion

of v

ario

us p

rogr

amm

es t

hrou

ghou

t 20

16.

Last

yea

r, PH

P 1.

38 b

illion

(USD

30

milli

on) w

ere

rele

ased

. In

2016

, the

focu

s of

the

inte

rven

tions

rem

ains

on

coco

nut

reha

bilit

atio

n/re

plan

ting,

ferti

lizat

ion,

inte

rcro

ppin

g an

d sm

allh

olde

r oil

palm

dev

elop

men

t.

32AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Sect

or d

evel

opm

ent

mea

sure

s

Philip

pine

sJu

neC

ocon

utAc

cord

ing

to lo

cal p

ress

, the

Phi

lippi

ne’s

inco

min

g go

vern

men

t vow

ed to

rele

ase

the

fund

s th

at w

ere

colle

cted

from

coc

onut

pro

duce

rs v

ia a

levy

dur

ing

the

1970

s (s

ee a

lso M

PPU

Jan

.’15)

. The

age

ncie

s ta

sked

to m

anag

e th

e fu

nds

will

have

to d

esig

n a

mec

hani

sm fo

r red

istri

butin

g th

e m

onie

s to

farm

ers.

Re

late

d to

thi

s, t

he g

over

nmen

t an

noun

ced

plan

s to

im

plem

ent

a la

rge-

scal

e co

conu

t pl

antin

g pr

ogra

mm

e. R

epor

tedl

y, th

e co

untry

’s C

ocon

ut A

utho

rity

is re

ady

to la

unch

a s

ix-y

ear p

lant

ing

sche

me

cove

ring

600

000

hect

ares

of n

ew c

ocon

ut a

reas

acr

oss

the

natio

n. U

nder

the

prog

ram

me,

farm

ers

wou

ld e

njoy

acc

ess

to c

ocon

ut s

eedl

ings

, fer

tilize

rs a

nd ir

rigat

ion

equi

pmen

t th

roug

h so

ft lo

ans.

In

para

llel,

the

intro

duct

ion

of s

econ

dary

/cas

h cr

ops

wou

ld b

e pr

omot

ed.

33AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Sect

or d

evel

opm

ent

mea

sure

s

Tanz

ania

(U

nite

d Re

publ

ic o

f)

Mar

chEd

ible

oils

Acco

rdin

g to

the

loca

l pre

ss, t

he G

over

nmen

t of t

he U

nite

d Re

publ

ic o

f Tan

zani

a is

con

side

ring

to o

ffer

supp

ort t

o lo

cal e

dibl

e oi

l man

ufac

ture

rs w

ith a

vie

w to

add

ing

valu

e to

dom

estic

oils

eed

prod

uctio

n,

whi

le re

duci

ng th

e vo

lum

e of

impo

rted

oils

. Rep

orte

dly,

gove

rnm

ent e

fforts

wou

ld c

once

ntra

te o

n lo

cal

inve

stor

s in

tere

sted

in s

ettin

g up

faci

litie

s fo

r pro

cess

ing

crop

s su

ch a

s se

sam

e, s

unflo

wer

see

d an

d oi

l pal

m fr

uit.

34AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Sect

or d

evel

opm

ent

mea

sure

s

Tanz

ania

(U

nite

d Re

publ

ic o

f)/In

dia

July

Sunfl

ower

se

edSu

nflow

er o

il pr

oces

sors

in th

e U

nite

d Re

publ

ic o

f Tan

zani

a’s

cent

ral r

egio

ns a

re e

xplo

ring

poss

ibilit

ies

of e

nter

ing

into

com

mer

cial

par

tner

ship

s w

ith th

e In

dian

Sol

vent

Ext

ract

ors’

Ass

ocia

tion

– un

der t

he

aegi

s of

SIT

A (S

uppo

rting

Indi

a’s

Trad

e Pr

efer

ence

s fo

r Af

rica)

, a

mul

tilat

eral

initi

ativ

e im

plem

ente

d by

the

Inte

rnat

iona

l Tra

de C

entre

. The

gov

ernm

ent-b

acke

d pa

rtner

ship

s in

itial

ly e

nvis

age

the

trans

fer

of p

roce

ssin

g te

chno

logy

fro

m In

dian

com

pani

es t

o Ta

nzan

ian

coun

terp

arts

and

, sub

sequ

ently

, the

ex

porta

tion

of h

igh-

valu

e re

fined

sun

flow

er o

ils fr

om th

e U

nite

d Re

publ

ic o

f Tan

zani

a to

Indi

a.

35AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Sect

or d

evel

opm

ent

mea

sure

s

Tanz

ania

(U

nite

d Re

publ

ic o

f)

Nov

embe

rSu

nflow

er

seed

The

gove

rnm

ents

of

Denm

ark,

Irel

and,

Sw

eden

and

Sw

itzer

land

hav

e es

tabl

ishe

d a

faci

lity

(nam

ed

Agric

ultu

re M

arke

ts D

evel

opm

ent T

rust

, AM

DT) t

o st

reng

then

sel

ecte

d co

mm

odity

cha

ins

in th

e U

nite

d Re

publ

ic o

f Tan

zani

a, in

clud

ing

the

coun

try’s

sunfl

ower

seed

val

ue c

hain

. Und

er th

e 10

-yea

r ini

tiativ

e,

new

par

tner

ship

s w

ith b

oth

priv

ate

oper

ator

s an

d go

vern

men

t age

ncie

s w

ill be

form

ed to

(i) i

mpr

ove

the

avai

labi

lity

of a

nd a

cces

s to

impr

oved

see

d va

rietie

s by

sm

allh

olde

r far

mer

s, (i

i) pr

omot

e pr

o-po

or

cont

ract

ual a

rrang

emen

ts a

long

the

valu

e ch

ain,

and

(iii)

enha

nce

the

acce

ss o

f sm

all f

arm

ers,

sm

all-

scal

e pr

oces

sors

and

thei

r ass

ocia

tions

to fi

nanc

ial a

nd o

ther

ser

vice

s. T

en re

gion

s in

the

coun

try h

ave

been

iden

tified

for p

ilot i

nter

vent

ions

. In

addi

tion

to c

reat

ing

new

inco

me

and

empl

oym

ent o

ppor

tuni

ties,

th

e pr

ojec

t aim

s at

hel

ping

redu

ce th

e co

untry

’s de

pend

ence

on

impo

rted

vege

tabl

e oi

ls.

Oilcrops complex: Policy changes and industry measures - Annual compendium 2016 7

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

36AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Sect

or d

evel

opm

ent

mea

sure

s

Vanu

atu

July

Coc

onut

In J

uly

2016

, the

Gov

ernm

ent o

f Van

uatu

laun

ched

a N

atio

nal C

ocon

ut S

trate

gy. T

he n

ine-

year

pla

n ai

ms

to re

vive

the

coun

try’s

coco

nut i

ndus

try a

fter t

he d

evas

tatio

n ca

used

by

Cyc

lone

Pam

last

yea

r. Th

e st

rate

gy fo

cuse

s on

repl

antin

g ac

tiviti

es a

nd p

rodu

ct d

iver

sific

atio

n.

37AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Pest

con

trol m

easu

res

& re

gula

tions

Can

ada

Nov

embe

rPe

stic

ides

The

fede

ral g

over

nmen

t pro

pose

d a

natio

n-w

ide

phas

e-ou

t of p

estic

ides

bel

ongi

ng to

the

neon

icot

inoi

d fa

mily

, citi

ng r

isin

g ev

iden

ce o

f ac

cum

ulat

ion

in w

ater

way

s an

d ha

rm t

o aq

uatic

inse

cts

and

bees

. N

eoni

cotin

oids

are

wid

ely

used

on

oils

eed

and

othe

r cro

ps, a

s w

ell a

s in

fore

stry

and

on

pets

. In

the

prov

ince

of O

ntar

io, t

heir

use

is s

ubje

ct to

stri

ct c

ontro

ls s

ince

mid

-201

5. E

lsew

here

, app

rova

ls h

ave

been

with

draw

n in

the

Uni

ted

Stat

es la

st y

ear,

whi

le, i

n th

e Eu

rope

an U

nion

, the

use

of n

eoni

cotin

oids

is

ban

ned

sinc

e 20

13 (s

ee M

PPU

Jun

e’13

, Jul

.&De

c.’1

5).

38AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Pest

con

trol m

easu

res

& re

gula

tions

Chi

naN

ovem

ber

Pest

icid

esDr

aft

stan

dard

s es

tabl

ishi

ng m

axim

um r

esid

ue l

evel

s fo

r pe

stic

ides

on

vario

us a

gric

ultu

ral

crop

s,

incl

udin

g ke

y oi

lcro

ps, h

ave

been

pub

lishe

d fo

r com

men

t by

the

Chi

nese

aut

horit

ies.

39AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Pest

con

trol m

easu

res

& re

gula

tions

Euro

pean

Uni

on

Janu

ary

Oliv

e tre

eTh

e Eu

rope

an C

omm

issi

on h

as o

pene

d an

infri

ngem

ent p

roce

dure

aga

inst

Ital

y fo

r not

fully

resp

ectin

g th

e ob

ligat

ions

of t

he E

U c

onta

inm

ent p

lan

desi

gned

to b

lock

the

spre

ad o

f xyle

lla fa

stid

iosa

, a b

acte

rial

dise

ase

blam

ed fo

r dev

asta

ting

oliv

e tre

es in

Sou

ther

n Ita

ly (s

ee M

PPU

Aug

. & D

ec.’1

5). I

n pa

rticu

lar,

Italy

has

bee

n sl

ow in

impl

emen

ting

the

EU-im

pose

d tre

e er

adic

atio

n m

easu

res.

On

the

sam

e m

atte

r, lo

cal c

ourts

rep

orte

dly

orde

red

the

susp

ensi

on o

f sev

eral

pro

gram

mes

on

the

view

tha

t to

o lit

tle is

un

ders

tood

abo

ut th

e sc

ienc

e of

the

dise

ase

to ju

stify

cer

tain

mea

sure

s. E

spec

ially

the

plan

to c

reat

e bu

ffer z

ones

by

upro

otin

g al

l sus

cept

ible

pla

nts

in a

100

-met

er ra

dius

of i

nfec

ted

oliv

e tre

es a

ttrac

ted

criti

cism

.

40AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Pest

con

trol m

easu

res

& re

gula

tions

Euro

pean

Uni

on

April

Her

bici

des

In A

pril 2

016,

the

Euro

pean

Par

liam

ent i

nvite

d th

e Eu

rope

an C

omm

issi

on to

ext

end

the

mar

ket a

ppro

val

for g

lyph

osat

e by

no

mor

e th

an 7

yea

rs. O

rigin

ally,

the

perm

it –

whi

ch ru

ns o

ut in

Jun

e 20

16 –

had

bee

n pr

opos

ed fo

r a 1

5-ye

ar re

new

al. L

awm

aker

s al

so re

com

men

ded

to re

stric

t the

type

of u

ses

for w

hich

the

herb

icid

e w

as c

lear

ed, u

ntil i

ts c

lass

ifica

tion

for s

afe

and

sust

aina

ble

use

and

its to

xici

ty le

vels

wer

e re

-as

sess

ed. T

hey

also

requ

este

d th

at th

e sc

ient

ific

evid

ence

beh

ind

a re

cent

ass

essm

ent o

f the

her

bici

de

by th

e Eu

rope

an F

ood

Safe

ty A

utho

rity

be d

iscl

osed

(see

also

MPP

U D

ec.’1

5 &

Mar

.’16)

. Gly

phos

ate

is e

xten

sive

ly u

sed

in a

gric

ultu

re a

nd is

em

ploy

ed w

orld

wid

e in

soy

bean

cul

tivat

ion.

Lat

ely,

ques

tions

ab

out t

he h

erbi

cide

’s eff

ectiv

enes

s an

d ab

out p

oten

tial e

nviro

nmen

tal/h

ealth

haz

ards

ass

ocia

ted

with

its

use

hav

e be

en ra

ised

by

rese

arch

ers

and

regu

lato

ry a

genc

ies

in s

ever

al c

ount

ries.

41AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Pest

con

trol m

easu

res

& re

gula

tions

Euro

pean

U

nion

/Ital

y M

ayO

live

tree

A ne

w s

tudy

rele

ased

by

the

Euro

pean

Foo

d Sa

fety

Aut

horit

y (E

FSA)

con

firm

ed th

at x

ylella

fast

idio

sa is

re

spon

sibl

e fo

r the

qui

ck w

iltin

g an

d di

ebac

k sy

ndro

me

that

is d

estro

ying

oliv

e tre

es in

sou

ther

n Ita

ly.

The

findi

ng is

sai

d to

mar

k an

impo

rtant

ste

p fo

rwar

d be

caus

e, in

ord

er to

acc

urat

ely

asse

ss th

e ris

k of

an

epid

emic

spr

eadi

ng, t

he e

pide

mio

logy

and

hos

t ran

ge o

f the

dis

ease

nee

d to

be

asce

rtain

ed.

The

stud

y co

nsid

ers

the

strin

gent

rem

oval

of h

ost

plan

ts, i

rresp

ectiv

e of

the

ir he

alth

sta

tus,

in n

ew

outb

reak

are

as, a

s th

e on

ly o

ptio

n eff

ectiv

e in

redu

cing

pat

hoge

n sp

read

. In

addi

tion,

the

redu

ctio

n of

ce

rtain

vec

tor p

opul

atio

ns, b

y ap

plic

atio

n of

che

mic

als

or a

ny s

usta

inab

le m

etho

d, m

ay s

low

dow

n th

e pa

thog

en s

prea

d.

8 Oilcrops complex: Policy changes and industry measures - Annual compendium 2016

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

42AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Pest

con

trol m

easu

res

& re

gula

tions

Euro

pean

Uni

on

June

Oliv

e tre

eTh

e Eu

rope

an C

ourt

of J

ustic

e ba

cked

a d

ecis

ion

requ

iring

EU

mem

ber s

tate

s to

imm

edia

tely

rem

ove

plan

ts c

apab

le o

f ho

stin

g th

e xy

lella

bac

teriu

m, r

egar

dles

s of

the

ir he

alth

sta

tus,

with

in a

rad

ius

of

100

met

ers

arou

nd in

fect

ed p

lant

s (s

ee M

PPU

May

&Jul

y’15

). Th

e Eu

rope

an C

omm

issi

on’s

deci

sion

ha

d be

en c

halle

nged

by

a re

gion

al c

ourt

in It

aly,

whi

ch s

uspe

nded

the

EU o

rder

and

refe

rred

ques

tions

to

the

bloc

’s C

ourt

of J

ustic

e (s

ee M

PPU

Feb

.’16)

. In

June

201

6, th

e Eu

rope

an c

ourt

dete

rmin

ed th

at

the

mea

sure

was

in lin

e w

ith E

U la

w, in

par

ticul

ar w

ith th

e ob

ligat

ion

to a

pply

app

ropr

iate

phy

tosa

nita

ry

treat

men

ts. T

he E

U C

ourt

rule

d th

at th

e pr

ecau

tiona

ry p

rinci

ple

and

the

prin

cipl

e of

pro

porti

onal

ity c

an

just

ify th

e ad

optio

n of

pro

tect

ive

mea

sure

s su

ch a

s th

e re

mov

al o

f pla

nts,

eve

n w

here

ther

e is

sci

entifi

c un

certa

inty

on

the

subj

ect.

43AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Pest

con

trol m

easu

res

& re

gula

tions

Euro

pean

U

nion

/Ital

y Ju

lyO

live

tree

In J

uly

2016

, the

Eur

opea

n C

omm

issi

on o

pene

d a

seco

nd in

fring

emen

t pro

cedu

re a

gain

st It

aly

over

al

lege

d de

lays

in a

pply

ing

mea

sure

s ag

ains

t the

spr

ead

of th

e xy

lella

fast

idio

sa b

acte

rium

in A

pulia

, Ita

ly (s

ee a

lso M

PPU

Feb

.’16)

. In

the

mea

ntim

e, lo

cal a

utho

ritie

s ar

e w

orki

ng o

n a

draf

t bi

ll on

the

m

anag

emen

t of t

he d

isea

se in

the

terri

tory

, acc

ordi

ng to

pre

ss re

ports

. In

addi

tion

to in

terv

entio

ns to

st

op th

e fu

rther

spr

ead

of th

e di

seas

e, m

easu

res

for t

he re

cove

ry o

f dam

aged

tree

s, th

e pl

antin

g of

to

lera

nt va

rietie

s or a

ltern

ativ

e sp

ecie

s and

land

scap

e pr

otec

tion

sche

mes

are

und

er c

onsi

dera

tion,

with

th

e ob

ject

ive

to re

stor

e th

e ec

onom

ic a

nd e

nviro

nmen

tal b

alan

ce in

the

affec

ted

area

s. L

ocal

aut

horit

ies

have

als

o pr

esen

ted

the

resu

lts o

f exp

erim

enta

l nat

ural

trea

tmen

ts a

nd g

ood

farm

ing

prac

tices

car

ried

out i

n re

cent

mon

ths

on in

fect

ed tr

ees,

whi

ch, a

re s

aid

to h

ave

show

n vi

sibl

e si

gns

of im

prov

emen

t.

44AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Pest

con

trol m

easu

res

& re

gula

tions

Euro

pean

Uni

on

July

Her

bici

des

The

Euro

pean

Com

mis

sion

dec

ided

to e

xten

d th

e lic

ense

app

rova

l for

gly

phos

ate

(a c

hem

ical

foun

d in

he

rbic

ides

use

d on

oilc

rops

and

gra

ins

wor

ldw

ide)

by

a pe

riod

of 1

8 m

onth

s, s

tarti

ng o

n 1

July

201

6.

Orig

inal

ly, th

e C

omm

issi

on h

ad p

ropo

sed

a 15

-yea

r ren

ewal

, whi

le th

e EU

Par

liam

ent r

ecom

men

ded

limiti

ng th

e au

thor

izatio

n to

7 y

ears

(see

also

MPP

U J

une’

16).

As th

e EU

mem

ber g

over

nmen

ts fa

iled

to

reac

h an

agr

eem

ent,

the

Com

mis

sion

eve

ntua

lly o

pted

for a

limite

d, 1

8-m

onth

rene

wal

gea

red

tow

ards

ob

tain

ing

addi

tiona

l sci

entifi

c ev

iden

ce o

n th

e he

rbic

ide’

s sa

fety

. Acc

ordi

ngly,

the

Euro

pean

Che

mic

als

Agen

cy (E

CH

A) h

as b

een

requ

este

d to

con

duct

a h

arm

onize

d cl

assi

ficat

ion

and

labe

lling

proc

ess

for

glyp

hosa

te. A

s th

e sc

ope

of th

e ad

ditio

nal r

evie

w in

clud

es a

ll to

xico

logi

cal e

ffect

s, ro

utes

of e

xpos

ure

and

envi

ronm

enta

l pro

tect

ion

aspe

cts,

it w

ill lo

ok b

eyon

d th

e im

med

iate

toxi

city

of a

ctiv

e in

gred

ient

s.

ECH

A’s

is e

xpec

ted

to p

ublis

h an

d fo

rwar

d its

opi

nion

to th

e EU

Com

mis

sion

with

in th

e ne

xt 1

8 m

onth

s.

Back

in D

ecem

ber 2

015,

the

Euro

pean

Foo

d Sa

fety

Aut

horit

y (E

FSA)

had

ass

esse

d th

at g

lyph

osat

e w

as

unlik

ely

to p

ose

a ca

rcin

ogen

ic h

azar

d to

hum

ans

(see

MPP

U D

ec.’1

5).

45AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Pest

con

trol m

easu

res

& re

gula

tions

Spai

nN

ovem

ber

Oliv

e tre

eXy

lella

fast

idio

sa, t

he b

acte

rial d

isea

se th

at s

ince

its

outb

reak

in s

outh

ern

Italy

in 2

013

pose

s a

serio

us

thre

at to

oliv

e pr

oduc

tion

in th

e M

edite

rrane

an B

asin

, has

bee

n de

tect

ed fo

r the

firs

t tim

e in

Spa

in, o

n th

e Ba

lear

ic is

land

of M

allo

rca.

Fol

low

ing

the

dise

ase’

s di

scov

ery

on c

herry

and

ole

ande

r pla

nts,

loca

l au

thor

ities

hav

e im

pose

d ba

ns o

n th

e m

ovem

ent o

f pla

nt m

ater

ial a

nd s

tarte

d te

stin

g ot

her p

oten

tial

host

pla

nts,

in a

dditi

on to

des

troyi

ng a

ffect

ed p

lant

s. (T

he fi

rst c

ase

of in

fect

ion

repo

rted

from

out

side

Ita

ly c

once

rned

the

Isla

nd o

f Cor

sica

in F

ranc

e, in

mid

-201

5 –

(see

MPP

U A

ug’1

5).

Oilcrops complex: Policy changes and industry measures - Annual compendium 2016 9

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

46AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Pest

con

trol m

easu

res

& re

gula

tions

Uni

ted

Stat

esM

arch

Her

bici

des

Orig

inal

ly p

lann

ed f

or t

he f

orth

com

ing

plan

ting

seas

on,

the

laun

ch,

in t

he U

nite

d St

ates

, of

the

he

rbic

ide

‘dic

amba

’ for

use

on

dica

mba

-tole

rant

soy

bean

and

cot

ton

crop

s is

like

ly t

o fa

ce d

elay

s.

The

Envi

ronm

enta

l Pro

tect

ion

Agen

cy (E

PA) s

till n

eeds

to d

ereg

ulat

e a

new

use

of t

he h

erbi

cide

, whi

ch

wou

ld e

xpan

d th

e cu

rrent

tim

ing

to p

ost-e

mer

genc

e ap

plic

atio

ns o

f the

her

bici

de, t

here

by e

nhan

cing

th

e fa

rmer

s’ fl

exib

ility

in w

eed

cont

rol (

see

also

MPP

U M

ar.’1

6). C

onsi

derin

g th

at E

PA h

as o

nly

rece

ntly

in

vite

d pu

blic

com

men

ts o

n th

e ex

pand

ed u

se o

f ‘di

cam

ba’,

a fin

al ru

ling

is o

nly

expe

cted

in th

e se

cond

ha

lf of

this

yea

r. Fu

rther

mor

e, s

ome

US

grai

n el

evat

ors

and

trade

rs w

arne

d th

at th

ey w

ill re

ject

dic

amba

-to

lera

nt s

oybe

an, n

otab

ly th

e Ro

undu

p-Re

ady-

2-Xt

end

trait,

as

that

var

iety

has

not

yet

bee

n ap

prov

ed

in th

e Eu

rope

an U

nion

(whi

ch a

ccou

nts

for a

n im

porta

nt s

hare

of t

he U

S so

ybea

n ex

port

mar

ket).

47AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Pest

con

trol m

easu

res

& re

gula

tions

Uni

ted

Stat

esM

arch

Pest

icid

esEP

A in

form

ed t

hat

it w

as m

ovin

g to

hal

t th

e sa

le o

f in

sect

icid

es c

onta

inin

g th

e ac

tive

ingr

edie

nt

flube

ndia

mid

e. R

epor

tedl

y, th

e su

bsta

nce

was

foun

d to

pos

e ris

ks to

the

envi

ronm

ent.

The

chem

ical

ha

s be

en re

gist

ered

in 2

008

for u

se o

n m

any

crop

s, in

clud

ing

soyb

eans

.

48AG

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

erH

erbi

cide

sTh

e U

nite

d St

ates

Env

ironm

enta

l Pro

tect

ion

Agen

cy (E

PA) p

ropo

sed

to c

lass

ify g

lyph

osat

e, a

wid

ely

used

and

incr

easi

ngly

con

trove

rsia

l her

bici

de, a

s ‘n

ot li

kely

to

be c

arci

noge

nic

to h

uman

s at

dos

es

rele

vant

for h

uman

hea

lth ri

sk a

sses

smen

t’. T

he E

PA’s

posi

tion

is s

ched

uled

for r

evie

w, a

long

with

oth

er

mat

eria

l, by

a fe

dera

l sci

entifi

c ad

viso

ry p

anel

in D

ecem

ber 2

016,

afte

r whi

ch a

fina

l ass

essm

ent m

ay

be p

ublis

hed.

Rec

ently

, dou

bts

abou

t the

her

bici

de’s

effec

tiven

ess

and

abou

t pot

entia

l env

ironm

enta

l/he

alth

haz

ards

ass

ocia

ted

with

its

use

have

em

erge

d in

sev

eral

cou

ntrie

s (s

ee M

PPU

Feb

.’14,

Apr

./May

/De

c.’1

5 an

d M

ar./J

uly’

16).

49Ag

ricul

tura

l sup

port

POLI

CIE

S –

Pest

co

ntro

l mea

sure

s &

regu

latio

ns

Uni

ted

Stat

esN

ovem

ber

Her

bici

des

The

US

Envi

ronm

enta

l Pro

tect

ion

Agen

cy h

as a

ppro

ved

the

use

of a

spe

cific

, low

-vol

atilit

y fo

rmul

a of

‘dic

amba

’ her

bici

de o

n so

ybea

n an

d co

tton

plan

ts th

at h

ave

been

gen

etic

ally

mod

ified

to to

lera

te

‘dic

amba

’ (se

e al

so M

PPU

Apr

.’16)

. The

new

her

bici

de is

exp

ecte

d to

hel

p fa

rmer

s co

ntro

l wee

ds th

at

have

dev

elop

ed re

sist

ance

to o

ther

her

bici

des,

not

ably

gly

phos

ate.

To

addr

ess

conc

erns

that

the

use

of ‘d

icam

ba’ c

ould

eve

ntua

lly re

sult

in d

icam

ba-re

sist

ant w

eeds

, EPA

’s ap

prov

al in

clud

es c

ondi

tions

m

eant

to

ensu

re t

hat

wee

d re

sist

ance

is s

ucce

ssfu

lly m

anag

ed. T

he a

ppro

val i

s se

t to

exp

ire a

fter

two

year

s to

allo

w in

trodu

cing

cha

nges

, if n

eces

sary

. The

aut

horiz

atio

n al

so in

clud

es d

rift m

itiga

tion

mea

sure

s an

d sa

fety

pre

caut

ions

inte

nded

to e

xclu

de h

ealth

risk

s to

peo

ple

livin

g ne

ar tr

eate

d fie

lds.

M

onsa

nto,

the

com

pany

that

pro

duce

s th

e ne

w ‘d

icam

ba’ f

orm

ulat

ion,

stil

l nee

ds to

sec

ure

regu

lato

ry

appr

oval

from

indi

vidu

al s

tate

s be

fore

the

prod

uct c

an b

e m

arke

ted

to U

S fa

rmer

s.

50AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Pest

con

trol m

easu

res

& re

gula

tions

Glo

bal

Oct

ober

Oliv

e tre

eTh

e U

nite

d N

atio

ns F

ood

and

Agric

ultu

re O

rgan

izatio

n ha

s lau

nche

d a

tech

nica

l coo

pera

tion

prog

ram

me

aim

ed a

t pre

vent

ing

the

spre

ad o

f xyl

ella

fast

idio

sa –

a b

acte

rial d

isea

se b

lam

ed fo

r dev

asta

ting

oliv

e tre

es in

Sou

ther

n Ita

ly (s

ee M

PPU

Aug

.&De

c.’1

5) –

to

Nor

th A

frica

and

the

Mid

dle

East

. Tas

ked

to

impr

ove

the

tech

nica

l cap

acity

of l

ocal

inst

itutio

ns a

nd fa

rmer

s, th

e pr

ojec

t inc

lude

s ea

rly d

etec

tion,

m

onito

ring,

dia

gnos

tic a

nd p

hyto

sani

tary

act

iviti

es.

10 Oilcrops complex: Policy changes and industry measures - Annual compendium 2016

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

51AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Seed

mar

ket

Arge

ntin

aM

ayG

M s

oybe

anIn

Arg

entin

a, a

ll pr

ivat

e te

sts

of g

rain

/oils

eed

ship

men

ts c

arrie

d ou

t to

dete

ct th

e pr

esen

ce o

f GM

see

d w

ill re

quire

prio

r gov

ernm

ent a

utho

rizat

ion,

offi

cial

sou

rces

ann

ounc

ed. T

he n

ew ru

le w

ould

idle

effo

rts

by g

loba

l see

d co

mpa

ny M

onsa

nto

to c

olle

ct ro

yalti

es o

n G

M s

oybe

ans

slat

ed fo

r exp

ort (

incl

udin

g se

cond

-gen

erat

ion

soyb

eans

, i.e

. cr

ops

grow

n fro

m s

eed

not

dire

ctly

bou

ght

from

the

com

pany

). M

onsa

nto

relie

s on

priv

ate

trade

com

pani

es to

insp

ect a

ll so

ybea

n ca

rgoe

s fo

r the

pre

senc

e of

GM

m

ater

ial a

nd t

o co

llect

roy

altie

s on

its

beha

lf w

here

pro

of o

f prio

r pa

ymen

t is

mis

sing

– a

mea

sure

de

emed

illeg

al b

y Arg

entin

a’s f

arm

ers (

see

also

MPP

U Ju

ly’15

). In

the

wak

e of

the

gove

rnm

ent’s

dec

isio

n,

Mon

sant

o sa

id th

at it

wou

ld re

-eva

luat

e th

e vi

abilit

y of

con

tinui

ng it

s G

M s

oy b

usin

ess

in th

e co

untry

. Th

e co

mpa

ny’s

with

draw

al w

ould

bar

Arg

entin

a’s

farm

ers

from

acc

essi

ng M

onsa

nto’

s la

test

GM

soy

va

riety

, Rou

ndU

p-Re

ady-

2-Xt

end,

whi

ch a

llow

s fa

rmer

s to

con

trol w

eeds

resi

stan

t to

glyp

hosa

te-b

ased

he

rbic

ides

. Mon

sant

o ha

d pl

anne

d to

sta

rt se

lling

the

new

var

iety

this

yea

r, in

tim

e fo

r the

cou

ntry

’s 20

16/1

7 cr

op.

52AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Seed

mar

ket

Arge

ntin

aJu

neG

M s

oybe

anTh

e G

over

nmen

t of A

rgen

tina

com

mitt

ed to

stre

ngth

en it

s co

ntro

l ove

r nat

iona

l see

d m

arke

ts in

a b

id to

en

sure

that

priv

ate

seed

com

pani

es a

re a

ble

to c

onsi

sten

tly c

olle

ct ro

yalty

pay

men

ts. A

ddre

ssin

g ca

lls

by g

loba

l see

d co

mpa

ny M

onsa

nto

that

the

GM

tech

nolo

gy c

onta

ined

in a

new

ly d

evel

oped

soy

bean

va

riety

be

prot

ecte

d (s

ee M

PPU

Jun

e’16

), th

e co

untry

’s st

ate-

owne

d N

atio

nal S

eed

Inst

itute

, IN

ASE,

ha

s be

en ta

sked

to o

vers

ee th

e te

stin

g of

soy

bean

for t

he p

rese

nce

of re

leva

nt G

M tr

aits

. IN

ASE

will

be

allo

wed

to d

eleg

ate

the

labo

rato

ry te

sts

to p

rivat

e en

titie

s su

ch a

s re

gion

al g

rain

exc

hang

es. C

argo

es

that

test

pos

itive

will

be tr

aced

bac

k to

pro

duce

rs, t

o as

sess

whe

ther

roya

lties

hav

e be

en d

uly

paid

. Th

e pa

st p

ract

ice

whe

reby

Mon

sant

o w

ould

sig

n de

als

dire

ctly

with

priv

ate

grai

n co

mpa

nies

to p

olic

e ro

yalty

col

lect

ion

had

been

con

test

ed b

y Ar

gent

ina’

s fa

rmer

s.

53AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Relie

f mea

sure

s

Arge

ntin

aFe

brua

ryAg

ricul

tura

l co

mm

oditi

esFo

llow

ing

heav

y ra

ins

caus

ed b

y El

Niñ

o, s

ix o

f Ar

gent

ina’

s m

ain

agric

ultu

ral p

rovi

nces

hav

e be

en

decl

ared

floo

d em

erge

ncy

area

s, m

akin

g aff

ecte

d gr

ain,

fru

it an

d ca

ttle

farm

s el

igib

le t

o fin

anci

al

assi

stan

ce in

the

form

of s

peci

al c

redi

t lin

es a

nd ta

x br

eaks

. The

con

cern

ed p

rovi

nces

are

Cor

doba

, Sa

nta

Fe, E

ntre

Rio

s, L

a Ri

oja,

Cha

co a

nd C

orrie

ntes

.

54AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Relie

f mea

sure

s

Fiji

Oct

ober

Coc

onut

The

Gov

ernm

ent

of F

iji ha

s se

t as

ide

fund

s fo

r th

e re

habi

litat

ion

of t

he c

ount

ry’s

coco

nut

indu

stry

, fo

llow

ing

the

dam

age

infli

cted

by

cycl

one

Win

ston

ear

lier t

his

year

. The

fund

s w

ill be

use

d to

sou

rce

coco

nut

seed

s an

d ra

ise

seed

lings

fro

m a

reas

not

affe

cted

by

the

hurri

cane

. As

a c

ompl

emen

tary

m

easu

re,

the

gove

rnm

ent

has

rais

ed t

he p

rice

of c

opra

fro

m U

SD 7

80 t

o U

SD 1

000

per

ton

ne.

Furth

erm

ore,

sm

all-s

cale

pro

duce

rs w

ill re

ceiv

e fin

anci

al a

ssis

tanc

e fo

r pu

rcha

sing

equ

ipm

ent

to

prod

uce

virg

in c

ocon

ut o

il.

55AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Relie

f mea

sure

s

Philip

pine

sJu

neC

ocon

utTh

e Ph

ilippi

ne C

ocon

ut A

utho

rity

expe

cts

to c

ompl

ete

by 2

017

its c

ocon

ut p

alm

repl

antin

g pr

ogra

mm

e in

Eas

tern

Vis

ayas

, the

regi

on m

ost a

ffect

ed b

y ty

phoo

n H

aiya

n/Yo

land

a in

201

3. T

o pa

ve th

e w

ay fo

r th

e re

cove

ry o

f the

loca

l coc

onut

indu

stry

, the

pro

gram

me

envi

sage

d th

e re

plan

ting

of 1

0 m

illion

pal

ms.

56BI

OFU

EL P

OLI

CIE

SAu

stra

liaJa

nuar

yBi

odie

sel

The

Gov

ernm

ent

of Q

ueen

slan

d, A

ustra

lia’s

third

mos

t po

pulo

us s

tate

, ru

led

that

bio

dies

el a

nd

rene

wab

le b

iodi

esel

hav

e to

mak

e up

0.5

per

cent

of l

ocal

die

sel s

ales

as

of m

id-2

017

– fo

llow

ing

the

exam

ple

of N

ew S

outh

Wal

es, w

here

die

sel s

ales

con

tain

2 p

erce

nt o

f bio

dies

el s

ince

201

0. A

t the

sa

me

time,

the

fede

ral g

over

nmen

t is

cont

inui

ng it

s gr

adua

l pha

sing

-out

of s

uppo

rt pr

ovid

ed to

bio

fuel

pr

oduc

ers

in th

e fo

rm o

f sub

sidi

es a

nd ta

x co

nces

sion

s (s

ee M

PPU

Jun

e’14

& J

uly’

15).

57BI

OFU

EL P

OLI

CIE

SAu

stra

liaJu

neBi

odie

sel

The

Gov

ernm

ent o

f Que

ensl

and

com

mitt

ed A

UD

20 m

illion

(USD

15.

2 m

ill) in

fund

ing

to p

rom

ote

the

prod

uctio

n an

d us

e of

bio

fuel

s. T

he m

easu

re c

ompl

emen

ts th

e st

ate’

s 10

-yea

r bio

fuel

s ro

adm

ap, w

hich

co

mpr

ises

man

dato

ry tr

ansp

ort f

uel b

lend

ing

rate

s of 3

per

cent

and

0.5

per

cent

for,

resp

ectiv

ely,

etha

nol

and

biod

iese

l sta

rting

1st

Jan

uary

201

7.

Oilcrops complex: Policy changes and industry measures - Annual compendium 2016 11

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

58BI

OFU

EL P

OLI

CIE

SBr

azil

Mar

chBi

odie

sel

Legi

slat

ion

liftin

g th

e m

anda

ted

shar

e of

bio

dies

el in

die

sel t

rans

porta

tion

fuel

from

the

curre

nt 7

per

cent

to

10

perc

ent h

as b

een

pass

ed in

Bra

zil. T

he m

anda

tory

ble

nd r

ate

will

first

be

rais

ed to

8 p

erce

nt

in A

pril

2017

, and

sub

sequ

ently

to

9 pe

rcen

t in

201

8 an

d 10

per

cent

in 2

019.

The

new

legi

slat

ion

also

requ

ires

the

Nat

iona

l Cou

ncil

for E

nerg

y Po

licie

s to

test

the

feas

ibilit

y of

a 1

5 pe

rcen

t ble

nd o

ver

the

com

ing

36 m

onth

s. T

he m

easu

res

are

aim

ed a

t boo

stin

g do

mes

tic b

iodi

esel

pro

duct

ion,

redu

cing

pe

trole

um im

port

depe

nden

cy a

nd lo

wer

ing

pollu

tant

em

issi

ons.

Bas

ed o

n Br

azil’s

fuel

con

sum

ptio

n,

rais

ing

man

dato

ry b

lend

ing

by o

ne p

erce

ntag

e po

int l

ifts

annu

al d

omes

tic b

iodi

esel

usa

ge b

y ab

out

0.5

milli

on to

nnes

. The

cou

ntry

’s bi

odie

sel i

ndus

try s

houl

d be

abl

e to

mee

t the

hig

her b

lend

ing

targ

ets,

co

nsid

erin

g th

at it

cur

rent

ly o

pera

tes

with

45

perc

ent i

dle

capa

city

. The

gov

ernm

ent’s

bio

dies

el p

olic

y al

so p

rom

otes

fam

ily fa

rmin

g, a

s Br

azil’s

‘Soc

ial F

uel S

eal’

prog

ram

me

requ

ires

a ce

rtain

am

ount

of r

aw

mat

eria

ls to

be

sour

ced

from

fam

ily fa

rms.

In B

razil

, soy

bean

is e

xpec

ted

to re

mai

n th

e m

ain

feed

stoc

k us

ed fo

r bio

dies

el p

rodu

ctio

n.

59BI

OFU

EL P

OLI

CIE

SC

olom

bia

Oct

ober

Biod

iese

lIn

Col

ombi

a, w

here

fuel

and

bio

fuel

pric

es a

re s

tate

-regu

late

d, th

e G

over

nmen

t is

cons

ider

ing

to a

lign

dom

estic

bio

fuel

pric

es w

ith th

e lo

wer

wor

ld m

arke

t lev

els

– a

mea

sure

that

cou

ld m

ake

loca

l pro

duct

ion

of p

alm

oil-

base

d bi

odie

sel u

nvia

ble.

On

5 O

ctob

er, t

he g

over

nmen

t dec

ided

to fr

eeze

the

dom

estic

bi

odie

sel p

rice

at C

OP

9 96

6 pe

r litr

e (U

SD 3

.32)

. How

ever

, one

mon

th la

ter,

follo

win

g co

nsul

tatio

ns w

ith

the

indu

stry

, the

Gov

ernm

ent d

ecid

ed to

lift

the

pric

e fre

eze.

Del

iber

atio

ns o

n th

e re

form

of t

he c

urre

nt

pric

e fix

atio

n m

echa

nism

are

exp

ecte

d to

con

tinue

.

60BI

OFU

EL P

OLI

CIE

SEu

rope

an U

nion

Ju

lyBi

ofue

lW

eakn

esse

s in

the

syst

em c

ertif

ying

sus

tain

able

bio

fuel

s co

uld

unde

rmin

e th

e ba

sis

of th

e EU

’s 20

20

targ

ets f

or re

new

able

ene

rgy i

n tra

nspo

rt, a

ccor

ding

to a

rece

nt re

port

by th

e Eu

rope

an C

ourt

of A

udito

rs

(EC

A). U

nder

EU

rul

es, m

embe

r st

ates

can

onl

y us

e bi

ofue

ls c

ertifi

ed a

s su

stai

nabl

e to

rea

ch t

heir

targ

ets

(see

MPP

U A

ug.’1

1). W

hile

mos

t bio

fuel

s ar

e ce

rtifie

d th

roug

h vo

lunt

ary

sche

mes

reco

gnize

d by

the

Euro

pean

Com

mis

sion

, the

aud

itors

exp

ress

ed th

e op

inio

n th

at, b

ecau

se o

f wea

knes

ses

in th

e C

omm

issi

on’s

reco

gniti

on p

roce

dure

and

in th

e su

perv

isio

n of

the

sche

mes

, the

EU

’s bi

ofue

l cer

tifica

tion

is n

ot fu

lly re

liabl

e. T

hey

also

poi

nted

out

that

mem

ber c

ount

ry s

tatis

tics

mig

ht o

vere

stim

ate

the

use

of s

usta

inab

le b

iofu

els

by in

clud

ing

fuel

s w

hose

sus

tain

abilit

y w

as n

ot f

ully

ver

ified

. EC

A ca

lled

on

the

Com

mis

sion

to e

nsur

e th

at a

ll ce

rtific

atio

n sc

hem

es (i

) ass

ess

whe

ther

bio

fuel

pro

duct

ion

enta

ils

sign

ifica

nt s

ocio

-eco

nom

ic r

isks

and

indi

rect

land

-use

cha

nge;

(ii)

verif

y th

at f

eeds

tock

pro

duce

rs

com

ply

with

env

ironm

enta

l req

uire

men

ts fo

r agr

icul

ture

; and

(iii)

prov

ide

suffi

cien

t evi

denc

e of

the

orig

in

of w

aste

and

resi

dues

use

d fo

r bio

fuel

s.

61BI

OFU

EL P

OLI

CIE

SEu

rope

an U

nion

Ju

lyBi

ofue

lIn

a p

aper

out

linin

g m

easu

res

to a

ccel

erat

e th

e EU

’s tra

nsiti

on to

a lo

w-c

arbo

n ec

onom

y, th

e Eu

rope

an

Com

mis

sion

pro

pose

d to

gra

dual

ly p

hase

out

– fr

om 2

020

– co

nven

tiona

l foo

d-ba

sed

biof

uels

, whi

le

prov

idin

g in

cent

ives

for t

he d

evel

opm

ent o

f mor

e ad

vanc

ed (‘

seco

nd-g

ener

atio

n’) b

iofu

els,

incl

udin

g fu

els

prod

uced

from

agr

icul

tura

l res

idue

s. A

ccor

ding

to

the

docu

men

t, co

nven

tiona

l bio

fuel

s pl

ay a

lim

ited

role

in d

ecar

boni

zing

the

trans

port

sect

or a

nd s

houl

d no

t rec

eive

pub

lic s

uppo

rt af

ter 2

020.

The

C

omm

issi

on a

lso

prop

osed

– fo

r the

firs

t tim

e –

a se

t of a

mbi

tious

, bin

ding

GH

G e

mis

sion

redu

ctio

n ta

rget

s fo

r the

tran

spor

t, bu

ildin

gs, a

gric

ultu

re, w

aste

, lan

d-us

e an

d fo

rest

ry s

ecto

rs –

i.e.

the

sect

ors

that

are

not

incl

uded

in th

e bl

oc’s

Emis

sion

s Tr

adin

g Sy

stem

. The

pro

pose

d ta

rget

s ar

e co

untry

-spe

cific

an

d re

fer t

o th

e pe

riod

2021

–203

0, u

sing

200

5 em

issi

on le

vels

as

a ba

selin

e. A

spe

cial

trea

tmen

t is

prop

osed

for l

and

use,

land

use

cha

nge

and

the

fore

stry

sec

tor (

or L

ULU

CF)

, whi

ch, w

hile

pre

sent

ing

only

lim

ited

scop

e fo

r em

issi

on re

duct

ions

are

cap

able

to re

mov

e C

O₂ f

rom

the

atm

osph

ere.

12 Oilcrops complex: Policy changes and industry measures - Annual compendium 2016

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

62BI

OFU

EL P

OLI

CIE

SEu

rope

an U

nion

N

ovem

ber

Biof

uel

In lin

e w

ith e

arlie

r pro

posa

ls (s

ee M

PPU

Aug

’16)

, on

30 N

ovem

ber,

the

Euro

pean

Com

mis

sion

pub

lishe

d its

pla

n fo

r th

e re

visi

on o

f th

e EU

’s Re

new

able

Ene

rgy

Dire

ctiv

e. F

or t

he t

rans

porta

tion

sect

or,

the

prop

osal

env

isag

es a

pro

gres

sive

red

uctio

n of

foo

d-ba

sed

biof

uels

and

the

ir re

plac

emen

t by

mor

e ad

vanc

ed b

iofu

els.

The

shi

ft is

aim

ed a

t m

inim

izing

Indi

rect

Lan

d-U

se C

hang

e (IL

UC

) im

pact

s an

d re

alizi

ng th

e po

tent

ial f

or d

e-ca

rbon

izing

the

bloc

’s tra

nspo

rtatio

n se

ctor

, thu

s en

surin

g th

at th

e EU

’s em

issi

on r

educ

tion

com

mitm

ent

are

met

. Und

er t

he p

ropo

sal,

the

max

imum

con

tribu

tion

(in e

nerg

y te

rms)

of c

onve

ntio

nal (

or fi

rst-g

ener

atio

n) fo

od/fe

ed c

rop-

base

d bi

ofue

ls, w

hich

incl

udes

veg

etab

le

oil-b

ased

bio

dies

el, w

ould

gra

dual

ly fa

ll to

3.8

per

cent

in 2

030

(com

pare

d to

7 p

erce

nt in

202

1). A

t th

e sa

me

time,

the

shar

e of

so-

calle

d ‘a

dvan

ced’

(or s

econ

d-ge

nera

tion)

bio

fuel

s m

ade

from

var

ious

ty

pes

of b

iom

ass,

suc

h as

agr

icul

tura

l res

idue

s, w

ould

ris

e fro

m 1

.5 p

erce

nt t

o 6.

8 pe

rcen

t. As

of

Janu

ary

2021

, the

requ

ired

min

imum

GH

G e

mis

sion

sav

ings

from

the

use

of a

dvan

ced

biof

uels

wou

ld

amou

nt to

70

perc

ent.

As to

con

vent

iona

l bio

fuel

s, th

e pr

opos

al d

oes

not d

istin

guis

h be

twee

n di

ffere

nt

type

s of

con

vent

iona

l bio

fuel

s, le

avin

g it

to in

divi

dual

mem

ber

stat

es t

o de

term

ine

that

bre

akdo

wn

whe

n im

plem

entin

g th

e ru

les.

To

go in

to e

ffect

, the

Com

mis

sion

’s pr

opos

al re

quire

s ap

prov

al b

y bo

th

the

Euro

pean

Par

liam

ent a

nd in

divi

dual

mem

ber s

tate

s. In

dust

ry re

pres

enta

tive

criti

cize

d th

e pr

opos

al:

whi

le th

ey w

elco

med

the

plan

to g

radu

ally

pha

se-in

the

use

of a

dvan

ced

biof

uels

, the

y op

pose

the

prop

osal

to re

plac

e co

nven

tiona

l bio

fuel

s by

adv

ance

d bi

ofue

ls.

63BI

OFU

EL P

OLI

CIE

SIn

done

sia/

Mal

aysi

aJa

nuar

yBi

odie

sel

In 2

015,

the

gov

ernm

ents

of

Indo

nesi

a an

d M

alay

sia

anno

unce

d pl

ans

to in

crea

se t

heir

resp

ectiv

e bi

odie

sel c

onsu

mpt

ion

targ

ets

durin

g 20

16, w

ith a

vie

w to

(i) c

appi

ng o

utla

ys o

n cr

ude

oil i

mpo

rts, (

ii) re

duci

ng g

reen

hous

e ga

s em

issi

ons,

and

(iii)

rais

ing

dom

estic

pal

m o

il co

nsum

ptio

n, th

ereb

y le

ndin

g su

ppor

t to

pric

es. I

ndon

esia

, whe

re b

iodi

esel

sal

es b

enefi

t fro

m g

over

nmen

t sub

sidi

es, p

lann

ed to

rais

e m

anda

tory

ble

ndin

g of

pal

m o

il-ba

sed

biod

iese

l int

o tra

nspo

rt fu

el fr

om 1

5 to

20

perc

ent.

In M

alay

sia,

w

here

bio

dies

el p

rodu

ctio

n re

ceiv

es o

nly

limite

d pu

blic

fina

ncia

l sup

port,

an

incr

ease

in m

anda

tory

bl

endi

ng fr

om 7

to 1

0 pe

rcen

t was

pla

nned

. Lat

ely,

offici

als

from

bot

h co

untri

es s

tate

d th

at g

over

nmen

t pl

ans

for 2

016

wou

ld n

ot b

e al

tere

d, e

ven

thou

gh th

e re

cent

col

laps

e in

wor

ld c

rude

oil

pric

es h

ave

mad

e bi

odie

sel a

bout

twic

e as

exp

ensi

ve a

s its

foss

il fu

el a

ltern

ativ

e. T

he a

nnou

ncem

ents

wer

e m

et

with

sce

ptic

ism

by

inde

pend

ent o

bser

vers

and

indu

stry

offi

cial

s, w

ho p

oint

ed o

ut th

at c

urre

nt b

iodi

esel

up

take

stil

l had

to m

eet l

ast y

ear’s

targ

ets,

whi

le p

rodu

ctio

n le

vels

rem

aine

d w

ell b

elow

the

indu

stry

in

stal

led

capa

city

. Mor

eove

r, co

ncer

n w

as e

xpre

ssed

that

the

wid

enin

g pr

ice

gap

betw

een

palm

oil a

nd

crud

e oi

l wou

ld p

rope

l the

am

ount

nee

ded

to fu

nd p

ublic

subs

idie

s. B

ased

on

curre

nt p

rice

leve

ls, p

ublic

ou

tlays

requ

ired

to a

chie

ve th

e pl

anne

d ta

rget

s w

ere

roug

hly

estim

ated

at U

SD 1

trilli

on fo

r Ind

ones

ia

and

USD

260

milli

on fo

r Mal

aysi

a. In

Indo

nesi

a, g

over

nmen

t offi

cial

s re

itera

ted

that

the

requ

ired

fund

s w

ould

be

sour

ced

from

the

spec

ial p

alm

oil e

xpor

t lev

y in

trodu

ced

last

yea

r (se

e M

PPU

Jul

y &

Oct

.’15)

.

64BI

OFU

EL P

OLI

CIE

SKi

ribat

iM

ayC

ocon

ut o

ilW

ith m

ultil

ater

al fi

nanc

ial a

nd t

echn

ical

sup

port,

the

Kiri

bati

Gov

ernm

ent

is p

rom

otin

g th

e us

e of

co

conu

t oil

in p

ower

gen

erat

ion,

so

as to

cur

b th

e co

untry

’s de

pend

ence

on

fuel

impo

rts, w

hile

shi

fting

to

mor

e en

viro

nmen

tally

frie

ndly

form

s of

ene

rgy

prod

uctio

n. U

nder

the

proj

ect,

crud

e co

conu

t oil

will

be b

lend

ed w

ith re

gula

r die

sel f

uel a

t a 9

:1 ra

tio.

65BI

OFU

EL P

OLI

CIE

SM

alay

sia

Mar

chBi

odie

sel

Acco

rdin

g to

offi

cial

sou

rces

, the

Gov

ernm

ent o

f Mal

aysi

a is

poi

sed

to in

crea

se th

e co

untry

’s m

anda

tory

bi

odie

sel a

dmix

ture

rate

from

7 p

erce

nt to

10

perc

ent n

atio

nwid

e du

ring

the

cour

se o

f 201

6. O

rigin

ally,

th

e sh

ift to

the

high

er ra

te w

as s

ched

uled

to ta

ke p

lace

in O

ctob

er 2

015.

Pol

icy

mak

ers

pled

ged

to ra

ise

the

prod

uctio

n an

d us

e of

pal

m o

il-ba

sed

biod

iese

l des

pite

dep

ress

ed c

rude

oil p

rices

. The

pro

cess

ing

and

blen

ding

faci

litie

s re

quire

d to

mee

t hig

her b

lend

ing

man

date

s ar

e sa

id to

be

avai

labl

e. H

owev

er, t

he

coun

try’s

auto

mot

ive

indu

stry

has

exp

ress

ed re

serv

atio

ns a

bout

the

high

er b

lend

rate

s.

Oilcrops complex: Policy changes and industry measures - Annual compendium 2016 13

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

62BI

OFU

EL P

OLI

CIE

SEu

rope

an U

nion

N

ovem

ber

Biof

uel

In lin

e w

ith e

arlie

r pro

posa

ls (s

ee M

PPU

Aug

’16)

, on

30 N

ovem

ber,

the

Euro

pean

Com

mis

sion

pub

lishe

d its

pla

n fo

r th

e re

visi

on o

f th

e EU

’s Re

new

able

Ene

rgy

Dire

ctiv

e. F

or t

he t

rans

porta

tion

sect

or,

the

prop

osal

env

isag

es a

pro

gres

sive

red

uctio

n of

foo

d-ba

sed

biof

uels

and

the

ir re

plac

emen

t by

mor

e ad

vanc

ed b

iofu

els.

The

shi

ft is

aim

ed a

t m

inim

izing

Indi

rect

Lan

d-U

se C

hang

e (IL

UC

) im

pact

s an

d re

alizi

ng th

e po

tent

ial f

or d

e-ca

rbon

izing

the

bloc

’s tra

nspo

rtatio

n se

ctor

, thu

s en

surin

g th

at th

e EU

’s em

issi

on r

educ

tion

com

mitm

ent

are

met

. Und

er t

he p

ropo

sal,

the

max

imum

con

tribu

tion

(in e

nerg

y te

rms)

of c

onve

ntio

nal (

or fi

rst-g

ener

atio

n) fo

od/fe

ed c

rop-

base

d bi

ofue

ls, w

hich

incl

udes

veg

etab

le

oil-b

ased

bio

dies

el, w

ould

gra

dual

ly fa

ll to

3.8

per

cent

in 2

030

(com

pare

d to

7 p

erce

nt in

202

1). A

t th

e sa

me

time,

the

shar

e of

so-

calle

d ‘a

dvan

ced’

(or s

econ

d-ge

nera

tion)

bio

fuel

s m

ade

from

var

ious

ty

pes

of b

iom

ass,

suc

h as

agr

icul

tura

l res

idue

s, w

ould

ris

e fro

m 1

.5 p

erce

nt t

o 6.

8 pe

rcen

t. As

of

Janu

ary

2021

, the

requ

ired

min

imum

GH

G e

mis

sion

sav

ings

from

the

use

of a

dvan

ced

biof

uels

wou

ld

amou

nt to

70

perc

ent.

As to

con

vent

iona

l bio

fuel

s, th

e pr

opos

al d

oes

not d

istin

guis

h be

twee

n di

ffere

nt

type

s of

con

vent

iona

l bio

fuel

s, le

avin

g it

to in

divi

dual

mem

ber

stat

es t

o de

term

ine

that

bre

akdo

wn

whe

n im

plem

entin

g th

e ru

les.

To

go in

to e

ffect

, the

Com

mis

sion

’s pr

opos

al re

quire

s ap

prov

al b

y bo

th

the

Euro

pean

Par

liam

ent a

nd in

divi

dual

mem

ber s

tate

s. In

dust

ry re

pres

enta

tive

criti

cize

d th

e pr

opos

al:

whi

le th

ey w

elco

med

the

plan

to g

radu

ally

pha

se-in

the

use

of a

dvan

ced

biof

uels

, the

y op

pose

the

prop

osal

to re

plac

e co

nven

tiona

l bio

fuel

s by

adv

ance

d bi

ofue

ls.

63BI

OFU

EL P

OLI

CIE

SIn

done

sia/

Mal

aysi

aJa

nuar

yBi

odie

sel

In 2

015,

the

gov

ernm

ents

of

Indo

nesi

a an

d M

alay

sia

anno

unce

d pl

ans

to in

crea

se t

heir

resp

ectiv

e bi

odie

sel c

onsu

mpt

ion

targ

ets

durin

g 20

16, w

ith a

vie

w to

(i) c

appi

ng o

utla

ys o

n cr

ude

oil i

mpo

rts, (

ii) re

duci

ng g

reen

hous

e ga

s em

issi

ons,

and

(iii)

rais

ing

dom

estic

pal

m o

il co

nsum

ptio

n, th

ereb

y le

ndin

g su

ppor

t to

pric

es. I

ndon

esia

, whe

re b

iodi

esel

sal

es b

enefi

t fro

m g

over

nmen

t sub

sidi

es, p

lann

ed to

rais

e m

anda

tory

ble

ndin

g of

pal

m o

il-ba

sed

biod

iese

l int

o tra

nspo

rt fu

el fr

om 1

5 to

20

perc

ent.

In M

alay

sia,

w

here

bio

dies

el p

rodu

ctio

n re

ceiv

es o

nly

limite

d pu

blic

fina

ncia

l sup

port,

an

incr

ease

in m

anda

tory

bl

endi

ng fr

om 7

to 1

0 pe

rcen

t was

pla

nned

. Lat

ely,

offici

als

from

bot

h co

untri

es s

tate

d th

at g

over

nmen

t pl

ans

for 2

016

wou

ld n

ot b

e al

tere

d, e

ven

thou

gh th

e re

cent

col

laps

e in

wor

ld c

rude

oil

pric

es h

ave

mad

e bi

odie

sel a

bout

twic

e as

exp

ensi

ve a

s its

foss

il fu

el a

ltern

ativ

e. T

he a

nnou

ncem

ents

wer

e m

et

with

sce

ptic

ism

by

inde

pend

ent o

bser

vers

and

indu

stry

offi

cial

s, w

ho p

oint

ed o

ut th

at c

urre

nt b

iodi

esel

up

take

stil

l had

to m

eet l

ast y

ear’s

targ

ets,

whi

le p

rodu

ctio

n le

vels

rem

aine

d w

ell b

elow

the

indu

stry

in

stal

led

capa

city

. Mor

eove

r, co

ncer

n w

as e

xpre

ssed

that

the

wid

enin

g pr

ice

gap

betw

een

palm

oil a

nd

crud

e oi

l wou

ld p

rope

l the

am

ount

nee

ded

to fu

nd p

ublic

subs

idie

s. B

ased

on

curre

nt p

rice

leve

ls, p

ublic

ou

tlays

requ

ired

to a

chie

ve th

e pl

anne

d ta

rget

s w

ere

roug

hly

estim

ated

at U

SD 1

trilli

on fo

r Ind

ones

ia

and

USD

260

milli

on fo

r Mal

aysi

a. In

Indo

nesi

a, g

over

nmen

t offi

cial

s re

itera

ted

that

the

requ

ired

fund

s w

ould

be

sour

ced

from

the

spec

ial p

alm

oil e

xpor

t lev

y in

trodu

ced

last

yea

r (se

e M

PPU

Jul

y &

Oct

.’15)

.

64BI

OFU

EL P

OLI

CIE

SKi

ribat

iM

ayC

ocon

ut o

ilW

ith m

ultil

ater

al fi

nanc

ial a

nd t

echn

ical

sup

port,

the

Kiri

bati

Gov

ernm

ent

is p

rom

otin

g th

e us

e of

co

conu

t oil

in p

ower

gen

erat

ion,

so

as to

cur

b th

e co

untry

’s de

pend

ence

on

fuel

impo

rts, w

hile

shi

fting

to

mor

e en

viro

nmen

tally

frie

ndly

form

s of

ene

rgy

prod

uctio

n. U

nder

the

proj

ect,

crud

e co

conu

t oil

will

be b

lend

ed w

ith re

gula

r die

sel f

uel a

t a 9

:1 ra

tio.

65BI

OFU

EL P

OLI

CIE

SM

alay

sia

Mar

chBi

odie

sel

Acco

rdin

g to

offi

cial

sou

rces

, the

Gov

ernm

ent o

f Mal

aysi

a is

poi

sed

to in

crea

se th

e co

untry

’s m

anda

tory

bi

odie

sel a

dmix

ture

rate

from

7 p

erce

nt to

10

perc

ent n

atio

nwid

e du

ring

the

cour

se o

f 201

6. O

rigin

ally,

th

e sh

ift to

the

high

er ra

te w

as s

ched

uled

to ta

ke p

lace

in O

ctob

er 2

015.

Pol

icy

mak

ers

pled

ged

to ra

ise

the

prod

uctio

n an

d us

e of

pal

m o

il-ba

sed

biod

iese

l des

pite

dep

ress

ed c

rude

oil p

rices

. The

pro

cess

ing

and

blen

ding

faci

litie

s re

quire

d to

mee

t hig

her b

lend

ing

man

date

s ar

e sa

id to

be

avai

labl

e. H

owev

er, t

he

coun

try’s

auto

mot

ive

indu

stry

has

exp

ress

ed re

serv

atio

ns a

bout

the

high

er b

lend

rate

s.

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

66BI

OFU

EL P

OLI

CIE

SM

alay

sia

June

Biod

iese

lIn

Mal

aysi

a, in

Jul

y 20

16, t

he ra

tes

for m

anda

tory

ble

ndin

g of

con

vent

iona

l die

sel w

ith p

alm

oil-

base

d bi

odie

sel a

re s

et t

o be

rai

sed

to 1

0 pe

rcen

t an

d 7

perc

ent

for,

resp

ectiv

ely,

trans

porta

tion

fuel

and

in

dust

rial u

ses

(see

also

MPP

U A

pr.’1

6).T

he G

over

nmen

t ex

pect

s na

tionw

ide

impl

emen

tatio

n of

the

hi

gher

stan

dard

s to

be c

ompl

eted

by A

ugus

t 201

6. R

epor

tedl

y, fa

cilit

ies c

urre

ntly

ava

ilabl

e in

the

coun

try

are

adeq

uate

to h

andl

e th

e ne

w B

10 a

nd B

7 fu

els.

Bes

ides

pro

mot

ing

the

use

of re

new

able

, ‘gr

een’

so

urce

s of

ene

rgy,

the

mea

sure

is a

imed

at s

tabi

lizin

g –

via

the

stim

ulat

ion

of lo

cal d

eman

d –

loca

l cru

de

palm

oil

pric

es. T

he g

over

nmen

t exp

ects

pal

m o

il up

take

by

biod

iese

l pro

duce

rs to

gro

w (u

nder

pinn

ed

by th

e ne

w, h

ighe

r ble

ndin

g m

anda

tes)

from

cur

rent

ly 5

00 th

ousa

nd to

nnes

to 7

09 th

ousa

nd to

nnes

per

ye

ar. P

alm

oil i

ndus

try re

pres

enta

tives

que

stio

ned

whe

ther

the

envi

sage

d in

crea

se in

dom

estic

dem

and

will

be s

uffici

ent

to d

rain

the

cou

ntry

’s su

rplu

s ou

tput

of c

rude

pal

m o

il. T

hey

also

war

ned

that

the

cu

rrent

low

min

eral

oil

pric

es c

ould

mak

e bi

odie

sel p

rodu

ctio

n un

com

petit

ive.

67BI

OFU

EL P

OLI

CIE

SM

alay

sia

July

Biod

iese

lIn

Mal

aysi

a, th

e pl

anne

d sh

ift fr

om B

7 (i.

e. tr

ansp

orta

tion

dies

el c

onta

inin

g 7

perc

ent o

f bio

dies

el) t

o B1

0 (1

0 pe

rcen

t bl

ends

) has

bee

n de

laye

d pe

ndin

g th

e ou

tcom

e of

tal

ks b

etw

een

the

gove

rnm

ent

and

indu

stry

sta

keho

lder

s, n

otab

ly c

ar m

anuf

actu

rers

and

pet

rol s

tatio

n op

erat

ors

(see

MPP

U J

uly’

16).

Repo

rtedl

y, so

me

auto

mak

ers a

re c

once

rned

abo

ut th

e al

lege

d ad

vers

e im

pact

of h

ighe

r-gra

de b

iodi

esel

on

the

perfo

rman

ce o

f die

sel e

ngin

es a

nd h

ence

on

war

rant

y co

vera

ges.

Gov

ernm

ent o

ffici

als

info

rmed

th

at r

elev

ant

min

istri

es w

ould

stu

dy a

nd a

ddre

ss t

he c

once

rns

rais

ed, a

ddin

g th

at t

he g

over

nmen

t re

mai

ns c

omm

itted

to im

plem

ent m

anda

tory

B10

use

bef

ore

the

end

of 2

016.

68BI

OFU

EL P

OLI

CIE

SM

alay

sia

Oct

ober

Biod

iese

lAf

ter

seve

ral p

ostp

onem

ents

, th

e pl

anne

d sh

ift t

o hi

gher

bio

dies

el m

anda

tes

coul

d ta

ke p

lace

on

1 De

cem

ber 2

016,

acc

ordi

ng to

uno

ffici

al s

ourc

es (s

ee a

lso M

PPU

Aug

.’16)

. The

tran

spor

tatio

n se

ctor

w

ould

shi

ft fro

m m

anda

tory

con

sum

ptio

n of

B7

blen

ds (i

.e. d

iese

l con

tain

ing

7 pe

rcen

t of p

alm

oil-

base

d bi

odie

sel)

to B

10 b

lend

s, s

tarti

ng w

ith th

e st

ate

of J

ohor

. At t

he s

ame

time,

the

indu

stria

l sec

tor

wou

ld b

e ex

pect

ed to

mov

e to

B7

blen

ds n

atio

n-w

ide.

69BI

OFU

EL P

OLI

CIE

SM

alay

sia

Nov

embe

rBi

odie

sel

Con

trary

to e

arlie

r ann

ounc

emen

ts, t

he G

over

nmen

t of M

alay

sia

deci

ded

to d

efer

the

plan

ned

shift

to

B10

for t

he tr

ansp

ort s

ecto

r and

to B

7 fo

r the

indu

stria

l sec

tor –

i.e.

die

sel f

uel c

onta

inin

g, re

spec

tivel

y, 10

and

7 p

erce

nt o

f pa

lm o

il-ba

sed

biod

iese

l – t

o a

late

r, un

spec

ified

dat

e (s

ee a

lso M

PPU

Aug

.&

Nov

.’16)

. Gov

ernm

ent o

ffici

als

expl

aine

d th

at th

e pr

evai

ling

larg

e pr

ice

gap

betw

een

min

eral

oil

and

palm

oil h

as s

igni

fican

tly ra

ised

the

cost

of i

mpl

emen

ting

the

high

er m

anda

tes,

risk

ing

to u

ndul

y bu

rden

co

nsum

ers.

The

shi

ft w

as d

efer

red

until

a m

ore

suita

ble

time,

i.e.

unt

il th

e pr

ice

gap

dim

inis

hes.

The

co

untry

’s pa

lm o

il pr

oduc

ers

rem

ain

in fa

vour

of t

he m

ove,

whi

ch, b

y ra

isin

g an

nual

dom

estic

pal

m o

il us

e by

an

estim

ated

800

000

tonn

es, w

ould

hel

p br

ing

dow

n th

e co

untry

’s pa

lm o

il st

ocks

and

sup

port

pric

es.

70BI

OFU

EL P

OLI

CIE

SN

epal

June

Jatro

pha

oil

The

Gov

ernm

ent o

f Nep

al fo

rmed

a c

omm

ittee

to e

xam

ine

the

poss

ibilit

y of

pro

duci

ng b

iodi

esel

from

ja

troph

a cu

rcas

see

d. In

the

coun

try, o

ver 5

00 th

ousa

nd h

ecta

res

of u

nuse

d la

nd a

re d

eem

ed s

uita

ble

for

jatro

pha

culti

vatio

n, a

nd p

relim

inar

y st

udie

s cl

aim

tha

t se

vera

l reg

ions

hav

e a

high

pot

entia

l for

co

mm

erci

al ja

troph

a fa

rmin

g. T

he g

over

nmen

t is

purs

uing

bio

dies

el in

itiat

ives

with

a v

iew

to re

duce

th

e co

untry

’s de

pend

ence

on

impo

rted

foss

il fu

els,

whi

le re

duci

ng c

arbo

n em

issi

ons.

Rep

orte

dly,

the

coun

try s

till b

as to

put

in p

lace

the

nece

ssar

y in

frast

ruct

ure

for b

iodi

esel

pro

duct

ion

and

mar

ketin

g.

71BI

OFU

EL P

OLI

CIE

SPh

ilippi

nes

May

Biod

iese

lIn

May

201

6, th

e Ph

ilippi

nes’

Dep

artm

ent o

f Ene

rgy

issu

ed n

ew s

peci

ficat

ions

for c

ocon

ut m

ethy

l est

er

(coc

onut

oil-

base

d bi

odie

sel).

Alle

gedl

y, th

e re

vise

d na

tiona

l sta

ndar

d (w

hich

feat

ures

hig

her i

odin

e an

d ox

idat

ion

stab

ility

valu

es, a

low

er m

axim

um s

ulph

ur c

onte

nt, a

nd a

col

d so

ak fi

ltera

bilit

y te

st) r

aise

s th

e ba

r for

qua

lity

beyo

nd th

e gl

obal

ly a

ccep

ted

ASTM

bio

dies

el s

tand

ard.

Com

plia

nce

with

the

new

st

anda

rd h

as b

ecom

e m

anda

tory

for a

ll bi

odie

sel p

rodu

ced

and

sold

in th

e co

untry

.

14 Oilcrops complex: Policy changes and industry measures - Annual compendium 2016

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

72BI

OFU

EL P

OLI

CIE

STh

aila

ndM

ayBi

odie

sel

In T

haila

nd, w

here

man

dato

ry b

lend

ing

of d

iese

l tra

nspo

rtatio

n fu

el w

ith 7

per

cent

of p

alm

-oil

base

d bi

odie

sel is

in p

lace

sinc

e 20

14, t

he vo

lunt

ary n

atio

nwid

e sa

le o

f B10

(die

sel b

lend

s con

tain

ing

10 p

erce

nt

biod

iese

l) is

pla

nned

for 2

018.

Pol

icym

aker

s ar

e w

orki

ng o

n in

dust

ry s

tand

ards

for t

he h

ighe

r ble

nds

and

may

intro

duce

tax

ince

ntiv

es to

mak

e B1

0 m

ore

attra

ctiv

e. B

7 w

ill re

mai

n co

mm

erci

ally

ava

ilabl

e al

ongs

ide

B10.

For

veh

icle

s ru

n by

sta

te a

genc

ies

and

the

milit

ary,

B10

usag

e w

ill be

man

dato

ry.

73BI

OFU

EL P

OLI

CIE

STh

aila

ndJu

neBi

odie

sel

In T

haila

nd, w

here

man

dato

ry b

lend

ing

of d

iese

l tra

nspo

rtatio

n fu

el w

ith 7

per

cent

of p

alm

oil-

base

d bi

odie

sel is

in p

lace

sinc

e 201

4, th

e Gov

ernm

ent s

igne

d M

oUs w

ith p

rivat

e ene

rgy a

nd lo

gist

ics c

ompa

nies

to

use

B20

bio

dies

el (2

0 pe

rcen

t ble

nds)

for t

heir

heav

y ve

hicl

es. T

HB

115

milli

on (U

SD 3

.3 m

illion

) fro

m

the

coun

try’s

Ener

gy C

onse

rvat

ion

Prom

otio

n Fu

nd w

ill be

mad

e av

aila

ble

to s

ubsi

dize

pur

chas

es o

f th

e al

tern

ativ

e fu

el b

y th

e si

gnat

ory

com

pani

es. M

oreo

ver,

a fe

asib

ility

stud

y is

und

erw

ay to

eva

luat

e th

e us

e of

B10

bio

dies

el in

milit

ary

and

gove

rnm

ent t

rans

ports

. Onc

e th

e ne

cess

ary

assu

ranc

es w

ill be

obt

aine

d fro

m c

ar m

anuf

actu

rers

, B10

and

B20

ble

nds

will

also

bec

ome

avai

labl

e co

mm

erci

ally

(s

ee a

lso M

PPU

Jun

e 20

16).

74BI

OFU

EL P

OLI

CIE

STh

aila

ndAu

gust

Biod

iese

lTh

e G

over

nmen

t of

Tha

iland

dec

ided

to

redu

ce m

anda

tory

ble

ndin

g of

tra

nspo

rtatio

n di

esel

with

pa

lm o

il-ba

sed

biod

iese

l fro

m 7

per

cent

to 5

per

cent

in J

uly

2016

, and

furth

er to

3 p

erce

nt in

Aug

ust

2016

. Ble

ndin

g re

quire

men

ts h

ave

been

low

ered

in a

bid

to

end

a te

mpo

rary

sho

rtage

in d

omes

tic

cook

ing

oil s

uppl

ies.

Rep

orte

dly,

natio

nal p

alm

oil

supp

lies

have

bee

n lo

wer

than

ear

lier

antic

ipat

ed

(bec

ause

of p

oor y

ield

s lin

ked

to E

l Niñ

o), r

aisi

ng c

once

rn th

at s

oarin

g co

okin

g oi

l pric

es c

ould

har

m

cons

umer

s. N

o da

te h

as b

een

prov

ided

for t

he re

stor

atio

n of

the

7 pe

rcen

t ble

ndin

g ra

te. L

ast y

ear,

conf

ront

ed w

ith a

sim

ilar s

ituat

ion,

the

Gov

ernm

ent s

ofte

ned

its b

lend

ing

oblig

atio

ns fo

r a p

erio

d of

th

ree

mon

ths

(see

MPP

U M

ay’1

5). I

nter

estin

gly,

in o

ther

inst

ance

s, th

e G

over

nmen

t has

inte

rven

ed in

m

arke

ts to

pro

tect

pal

m o

il gr

ower

s fro

m s

udde

n pr

ice

falls

(see

MPP

U A

pr.’1

6 an

d Au

g./O

ct.’1

5).T

o be

tter u

nder

stan

d th

e re

curre

nt s

win

gs in

dom

estic

sup

plie

s an

d pr

ices

, the

Ene

rgy

Min

istry

dec

ided

to

mon

itor m

ovem

ents

in d

omes

tic p

alm

oil

stoc

ks, a

naly

sing

how

thes

e aff

ect t

he m

arke

t. In

the

long

er

term

, the

Gov

ernm

ent r

emai

ns c

omm

itted

to li

ft m

anda

tory

ble

ndin

g to

20

perc

ent b

y th

e ye

ar 2

036.

La

st y

ear,

the

Gov

ernm

ent a

lread

y off

ered

to s

ubsi

dize

vol

unta

ry u

se o

f 20

perc

ent b

lend

s by

truc

k dr

iver

s (s

ee M

PPU

Jul

y’15

). H

owev

er, t

he g

over

nmen

t rec

ently

adv

ised

that

nat

ionw

ide

intro

duct

ion

of

10 p

erce

nt b

lend

s w

ould

be

post

pone

d to

201

8. In

dust

ry e

xper

ts re

peat

edly

que

stio

ned

the

coun

try’s

abilit

y to

acc

ompl

ish

high

er b

lend

ing

rate

s gi

ven

wea

ther

unc

erta

intie

s an

d ot

her c

halle

nges

face

d by

th

e co

untry

’s pa

lm o

il in

dust

ry.

75BI

OFU

EL P

OLI

CIE

SU

nite

d St

ates

Janu

ary

Biod

iese

lTh

e U

S C

ongr

ess

pass

ed t

he e

xten

sion

of

the

USD

1 p

er g

allo

n (U

SD 0

.26

per

litre

) tax

cre

dit

for

biod

iese

l bl

ende

rs,

whi

ch h

ad e

xpire

d at

the

end

of

2014

. Th

e ta

x cr

edit

appl

ies

retro

activ

ely

to

1 Ja

nuar

y 20

15 a

nd w

ill re

mai

n in

pla

ce u

ntil 3

1 De

cem

ber 2

016.

A b

id to

refo

rm th

e su

bsid

y –

narro

win

g th

e sc

ope

of th

e cr

edit

to d

omes

tic p

rodu

ctio

n –

has

been

turn

ed d

own

by p

olic

y m

aker

s. T

he c

ount

ry’s

biod

iese

l ind

ustry

had

pro

pose

d th

at th

e ta

x in

cent

ive

be p

rovi

ded

to p

rodu

cers

rath

er th

an b

lend

ers.

Si

nce

blen

ders

util

ize b

oth

dom

estic

and

impo

rted

prod

uct

(dep

endi

ng o

n pr

ices

), th

e m

odifi

catio

n w

ould

hav

e m

ade

impo

rted

biod

iese

l inel

igib

le fo

r the

cre

dit a

nd th

us le

ss c

ompe

titiv

e. C

onve

rsel

y, th

e su

bsid

y’s e

xten

sion

in it

s cu

rrent

form

cou

ld –

giv

en th

e av

aila

bilit

y of

com

petit

ivel

y pr

iced

bio

dies

el

on th

e w

orld

mar

ket –

lead

to a

furth

er in

crea

se in

US

biod

iese

l im

ports

in 2

016,

at t

he e

xpen

se o

f do

mes

tical

ly p

rodu

ced

biod

iese

l.

76BI

OFU

EL P

OLI

CIE

SU

nite

d St

ates

May

Biod

iese

lTh

e U

.S.

Envi

ronm

enta

l Pr

otec

tion

Agen

cy (

EPA)

pro

pose

d a

man

dato

ry v

olum

e re

quire

men

t fo

r bi

omas

s-ba

sed

dies

el in

201

8 of

2.1

billi

on g

allo

ns –

com

pare

d w

ith fi

nal s

tand

ards

of 1

.9 b

illion

gal

lons

an

d 2.

0 bi

llion

gallo

ns in

201

6 an

d 20

17 r

espe

ctiv

ely.

The

coun

try’s

curre

nt p

rodu

ctio

n ca

paci

ty is

es

timat

ed a

t 2.1

billi

on g

allo

ns.

Oilcrops complex: Policy changes and industry measures - Annual compendium 2016 15

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

77BI

OFU

EL P

OLI

CIE

SU

nite

d St

ates

May

Biod

iese

lIn

Iow

a, th

e st

ate

with

the

seco

nd la

rges

t bio

dies

el p

rodu

ctio

n ca

paci

ty in

the

Uni

ted

Stat

es, t

he lo

cal

gove

rnm

ent d

ecid

ed to

ext

end

its b

iodi

esel

pro

duct

ion

cred

it –

orig

inal

ly s

et to

exp

ire a

t the

end

of 2

017

– th

roug

h 20

24. T

he p

rodu

cers

cre

dit w

ill re

mai

n at

2 U

S ce

nts

per g

allo

n fo

r the

firs

t 25

milli

on g

allo

ns

of p

rodu

ctio

n pe

r pla

nt. I

n ad

ditio

n, th

e st

ate’

s re

tail t

ax c

redi

t is

set t

o be

ext

ende

d an

d ex

pand

ed: w

hile

re

taile

rs w

ill co

ntin

ue to

rece

ive

a ta

x cr

edit

of 4

.5 U

S ce

nts

per g

allo

n fo

r sal

es o

f die

sel c

onta

inin

g at

le

ast 5

per

cent

bio

dies

el (B

5), f

rom

201

8 th

roug

h 20

24, t

he B

5 in

cent

ive

will

drop

to 3

.5 U

S ce

nts

per

gallo

n, w

here

as a

n ad

ditio

nal i

ncen

tive

of 5

.5 U

S ce

nts

per g

allo

n w

ill ta

ke e

ffect

for d

iese

l con

tain

ing

at le

ast 1

1 pe

rcen

t bio

dies

el.

78BI

OFU

EL P

OLI

CIE

SU

nite

d St

ates

Augu

stBi

ofue

lAc

cord

ing

to it

s ow

n in

spec

tor g

ener

al, t

he U

S En

viro

nmen

tal P

rote

ctio

n Ag

ency

(EPA

) has

falle

n be

hind

on

com

plia

nce

with

a n

umbe

r of

stu

dies

, inc

ludi

ng a

rep

ort

to C

ongr

ess

on t

he e

nviro

nmen

tal a

nd

cons

erva

tion

impa

cts

of th

e co

untry

’s Re

new

able

Fue

ls S

tand

ard.

Alle

gedl

y, no

t hav

ing

the

requ

ired

repo

rts a

nd s

tudi

es c

ompr

omis

es t

he a

genc

y’s a

bilit

y to

iden

tify,

cons

ider

and

mak

e po

licy

mak

ers

awar

e of

any

adv

erse

impa

cts

of re

new

able

fuel

s. R

epor

tedl

y, EP

A al

so fa

iled

to id

entif

y a

proc

ess

to

upda

te it

s lif

ecyc

le G

HG

em

issi

on a

naly

sis

for i

ndiv

idua

l ren

ewab

le fu

els.

The

met

hodo

logy

cur

rent

ly

used

relie

s on

a re

port

subm

itted

bac

k in

201

0.

79BI

OFU

EL P

OLI

CIE

SU

nite

d St

ates

Oct

ober

Biod

iese

lA

Uni

ted

Stat

es d

istri

ct c

ourt

has

rule

d th

at b

iodi

esel

ble

ndin

g m

anda

tes

appl

ied

in t

he s

tate

of

Min

neso

ta s

ince

200

5 do

not

con

flict

with

the

fede

ral R

enew

able

Fue

l Sta

ndar

d (R

FS),

and

that

the

RFS

ther

efor

e do

es n

ot p

re-e

mpt

Min

neso

ta’s

man

date

s. U

nder

Min

neso

ta s

tate

law,

die

sel f

uel s

old

with

in th

e st

ate

is re

quire

d to

con

tain

a s

peci

fic p

erce

ntag

e of

bio

dies

el (c

urre

ntly

10

perc

ent,

with

a

trans

ition

to 2

0 pe

rcen

t sch

edul

ed fo

r 201

8 –

see

MPP

U J

une’

14).

The

plai

ntiff

s –

oil,

gas,

truc

king

, aut

o m

anuf

actu

rer a

nd a

uto

deal

ersh

ip tr

ade

asso

ciat

ions

– h

ad a

rgue

d th

at M

inne

sota

’s pe

r-gal

lon

blen

ding

re

quire

men

ts, g

eogr

aphi

cal b

lend

ing

oblig

atio

ns a

nd t

imin

g re

stric

tions

are

not

com

patib

le w

ith t

he

natio

nal R

FS. M

inne

sota

was

the

first

sta

te to

pas

s a

biod

iese

l ble

ndin

g la

w, b

ut o

ther

US

stat

es h

ave

subs

eque

ntly

follo

wed

sui

t.

80BI

OFU

EL P

OLI

CIE

SU

nite

d St

ates

Nov

embe

rBi

odie

sel

The

US

Envi

ronm

enta

l Pro

tect

ion

Agen

cy (E

PA) i

ncre

ased

the

targ

ets

for r

enew

able

fuel

con

sum

ptio

n un

der

the

coun

try’s

Rene

wab

le F

uel S

tand

ard.

Alth

ough

the

sta

ndar

ds h

ave

been

kep

t be

low

the

st

atut

ory

targ

ets

set

in 2

007

to r

eflec

t ch

angi

ng m

arke

t re

aliti

es,

the

stea

dily

inc

reas

ing

volu

mes

co

ntin

ue to

sup

port

Con

gres

s’s in

tent

to e

xpan

d to

tal c

onsu

mpt

ion

of re

new

able

fuel

s, E

PA s

aid.

The

ag

ency

fina

lized

the

volu

me

requ

irem

ents

and

ass

ocia

ted

perc

enta

ge s

tand

ards

for t

otal

, con

vent

iona

l an

d ad

vanc

ed re

new

able

fuel

s fo

r the

yea

r 201

7, a

s w

ell a

s th

e vo

lum

e fo

r bio

mas

s-ba

sed

dies

el in

20

18. T

he v

olum

e of

‘tot

al r

enew

able

fue

l’ w

ill ris

e to

19.

28 b

illion

gal

lons

in 2

017,

up

6.5

perc

ent

form

201

6 bu

t sig

nific

antly

bel

ow th

e ta

rget

orig

inal

ly s

et b

y C

ongr

ess.

With

in th

at to

tal,

the

volu

me

of

‘non

-adv

ance

d co

nven

tiona

l bio

fuel

s’ (m

ostly

mai

ze-b

ased

eth

anol

) will

incr

ease

to 1

5 bi

llion

gallo

ns,

final

ly m

eetin

g th

e co

ngre

ssio

nal g

oal;

and

‘adv

ance

d bi

ofue

ls’,

whi

ch a

re re

quire

d to

ach

ieve

at l

east

50

per

cent

lifec

ycle

GH

G e

mis

sion

redu

ctio

ns, a

re s

et a

t 4.2

8 bi

llion

gallo

ns –

up

19 p

erce

nt fr

om 2

016,

bu

t stil

l bel

ow th

e or

igin

al c

ongr

essi

onal

targ

et. U

nder

the

adva

nced

bio

fuel

s ca

tego

ry, ‘

biom

ass-

base

d di

esel

’ (pr

oduc

ed fr

om v

eget

able

oils

, not

ably

soy

bean

oil,

and

ani

mal

fats

) is

set t

o gr

ow b

y 10

0 m

illion

ga

llons

in b

oth

2017

and

201

8, i.

e. to

vol

umes

twic

e th

e m

inim

um ta

rget

man

date

d by

Con

gres

s. In

ad

ditio

n, v

eget

able

oil-

base

d di

esel

may

als

o qu

alify

und

er t

he ‘u

ndiff

eren

tiate

d ad

vanc

ed b

iofu

els’

ca

tego

ry. G

iven

that

sev

eral

of t

he a

bove

fina

l tar

gets

exc

eed

the

prop

osal

s un

veile

d by

EPA

ear

lier

this

yea

r, a

high

er th

an p

revi

ousl

y an

ticip

ated

vol

ume

of fe

edst

ock,

in p

artic

ular

of s

oybe

an o

il, m

ight

be

requ

ired

to fu

lfil t

he n

ew U

S m

anda

tes

– a

pros

pect

that

trig

gere

d pr

ice

spik

es a

cros

s ve

geta

ble

oil

mar

kets

wor

ld-w

ide.

16 Oilcrops complex: Policy changes and industry measures - Annual compendium 2016

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

81M

ARKE

T PO

LIC

IES

– M

arke

t reg

ulat

ion

Bang

lade

shJa

nuar

yEd

ible

oils

The

Gov

ernm

ent o

f Ban

glad

esh

toge

ther

with

repr

esen

tativ

es o

f the

cou

ntry

’s ve

geta

ble

oil r

efine

rs a

nd

trade

rs a

gree

d to

cut

the

who

lesa

le p

rice

of c

ooki

ng o

il by

BDT

5 a

litre

(0.6

US

cent

), or

abo

ut 5

per

cent

. Th

e m

easu

re is

mea

nt t

o en

sure

tha

t co

nsum

ers

bene

fit f

rom

the

on-

goin

g de

clin

e in

inte

rnat

iona

l ve

geta

ble

oil p

rices

. In

Bang

lade

sh, w

here

impo

rts a

ccou

nt fo

r abo

ut 8

5 pe

rcen

t of d

omes

tic e

dibl

e oi

l con

sum

ptio

n, c

onsu

mer

pro

tect

ion

mea

sure

s w

ere

last

impl

emen

ted

durin

g 20

11–2

012

to s

hiel

d co

nsum

ers

from

sur

ges

in in

tern

atio

nal p

rices

(see

MPP

U M

ar.’1

1 &

Sep.

’12)

.

82M

ARKE

T PO

LIC

IES

– M

arke

t reg

ulat

ion

Bang

lade

shM

arch

Edib

le o

ilsTh

e G

over

nmen

t of B

angl

ades

h de

cide

d to

ext

end

the

valu

e-ad

ded

tax

exem

ptio

n on

dom

estic

edi

ble

oil t

rade

– g

rant

ed in

Feb

ruar

y 20

15 a

nd d

ue to

exp

ire in

Jun

e 20

16 –

by

one

year

, i.e

. unt

il 30

June

201

7.

The

mea

sure

is a

imed

at s

tabi

lizin

g do

mes

tic re

tail

pric

es o

f edi

ble

oils

. In

past

yea

rs, t

he g

over

nmen

t ha

s im

plem

ente

d a

varie

ty o

f mea

sure

s ai

med

at s

ecur

ing

dom

estic

sup

plie

s an

d pr

even

ting

cons

umer

pr

ices

from

risi

ng (s

ee M

PPU

Feb

’16)

.

83M

ARKE

T PO

LIC

IES

– M

arke

t reg

ulat

ion

Can

ada

May

Gra

ins,

oi

lsee

dsTh

e G

over

nmen

t of C

anad

a de

cide

d to

ext

end

by o

ne y

ear –

unt

il Au

gust

201

7 –

the

rule

s pu

t in

plac

e in

201

4 to

ens

ure

that

gra

ins,

oils

eeds

and

oth

er c

rops

reac

h m

arke

ts in

a ti

mel

y m

anne

r (se

e M

PPU

Ap

r.’15

). Th

e re

gula

tions

requ

ire m

inim

um s

hipm

ent v

olum

es b

y th

e co

untry

’s tw

o m

ain

railw

ays.

The

y al

so e

ntitl

e tra

ders

to

rece

ive

com

pens

atio

n w

hen

a ha

uler

fai

ls t

o pr

ovid

e ad

equa

te s

ervi

ces,

and

gi

ve U

.S.-b

ased

rai

lway

s gr

eate

r ac

cess

to

the

Can

adia

n fre

ight

mar

ket.

Gra

in t

rade

rs w

elco

med

th

e go

vern

men

t’s d

ecis

ion,

say

ing

that

the

prov

isio

ns h

ad p

rove

n to

be

an e

ffect

ive

tool

to e

nhan

ce

com

petit

ion

amon

g ca

rrier

s. B

y co

ntra

st,

the

coun

try’s

railw

ay c

ompa

nies

dee

med

the

mea

sure

s’

exte

nsio

n to

be

unju

stifi

ed.

84M

ARKE

T PO

LIC

IES

– M

arke

t reg

ulat

ion

Can

ada

Nov

embe

rG

rain

s,

oils

eeds

In N

ovem

ber,

the

Gov

ernm

ent o

f Can

ada

pres

ente

d its

‘Tra

nspo

rtatio

n 20

30’ s

trate

gy, w

hich

pro

pose

s pe

rman

ent m

easu

res

to e

nsur

e effi

cien

t rai

l mov

emen

t of g

oods

– e

spec

ially

gra

ins

and

oils

eeds

– to

th

e co

untry

’s ex

port

hubs

. The

mov

e ha

s be

en t

rigge

red

by t

he w

eakn

esse

s ex

pose

d in

Can

ada’

s ra

il sh

ippi

ng s

yste

m f

ollo

win

g th

e re

cord

201

3 cr

op,

whi

ch le

d to

suc

cess

ive

tem

pora

ry m

easu

re

desi

gned

to o

verc

ome

the

logi

stic

hur

dles

face

d by

the

agric

ultu

ral s

ecto

r (se

e M

PPU

Sep

.’14,

Jan

.’15

& Ju

n.’1

6). T

he m

easu

res

in p

lace

at p

rese

nt a

re s

et to

exp

ire in

mid

-201

7. U

pon

com

plet

ion

of in

-de

pth

cons

ulta

tions

with

sta

keho

lder

s al

ong

the

entir

e su

pply

cha

in, n

ew le

gisl

atio

n re

plac

ing

the

1996

C

anad

a Tr

ansp

orta

tion

Act a

nd th

e 20

14 F

air R

ail f

or G

rain

Far

mer

s Ac

t cou

ld b

e in

pla

ce in

the

sprin

g of

201

7.

85M

ARKE

T PO

LIC

IES

– M

arke

t reg

ulat

ion

Indi

aAp

rilAg

ricul

tura

l co

mm

oditi

esIn

Apr

il 20

16,

the

Gov

ernm

ent

of I

ndia

lau

nche

d an

e-tr

adin

g pl

atfo

rm c

over

ing

25 a

gric

ultu

ral

com

mod

ities

, inc

ludi

ng m

ajor

oils

eeds

, in

a bi

d to

impr

ove

trans

pare

ncy

in w

hole

sale

mar

kets

and

he

lp fa

rmer

s ob

tain

bet

ter p

rices

for t

heir

prod

ucts

. The

pla

tform

allo

ws

farm

ers

to s

ell t

heir

prod

ucts

on

line

in a

ny o

f the

regi

ster

ed m

arke

ts. O

ut o

f Ind

ia’s

29 s

tate

s, 2

1 ar

e pa

rtici

patin

g in

the

proj

ect,

whi

ch

initi

ally

cov

ers

365

who

lesa

le m

arke

ts.

86M

ARKE

T PO

LIC

IES

– M

arke

t reg

ulat

ion

Indi

aJu

lyC

ocon

ut o

ilIn

gov

ernm

ent o

f Ker

ala

stat

e (In

dia)

pro

pose

d th

e in

trodu

ctio

n of

sev

eral

taxe

s –

incl

udin

g a

5 pe

rcen

t le

vy o

n co

conu

t oil

sale

s an

d a

14.5

per

cent

‘fat

tax’

on

sele

cted

food

pro

duct

s so

ld th

roug

h br

ande

d ou

tlets

. Alle

gedl

y, th

e fa

t tax

is a

imed

at p

rom

otin

g he

alth

y ea

ting

habi

ts, w

hile

the

reve

nues

from

the

prop

osed

coc

onut

oil

levy

wou

ld b

e ea

rmar

ked

for p

rocu

rem

ent o

f cop

ra fr

om c

ocon

ut g

row

ers.

Oilcrops complex: Policy changes and industry measures - Annual compendium 2016 17

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

87M

ARKE

T PO

LIC

IES

– M

arke

t reg

ulat

ion

Indi

aJu

lyFo

od, e

dibl

e oi

lsC

once

rned

ove

r ris

ing

infla

tion,

Indi

a’s

Cen

tral G

over

nmen

t ha

s as

ked

stat

e offi

cial

s to

rem

ove

all

loca

l tax

es th

at a

re le

vied

on

esse

ntia

l foo

d ite

ms

(incl

udin

g ed

ible

oils

), lo

cal n

ewsp

aper

s re

porte

d.

Appa

rent

ly, t

he m

ove

is a

imed

at

ensu

ring

natio

nwid

e ad

equa

te s

uppl

ies

of e

ssen

tial f

ood

item

s at

pr

ices

affo

rdab

le to

con

sum

ers.

Sta

te g

over

nmen

ts s

houl

d al

so re

duce

the

num

ber o

f int

erm

edia

ries

in th

e su

pply

cha

in a

nd a

llow

farm

ers

to s

ell t

heir

prod

uce

at a

ny p

lace

of t

heir

choi

ce. M

oreo

ver,

to

enha

nce

the

avai

labi

lity

of e

ssen

tial f

oods

and

che

ck p

rice

rises

, loc

al g

over

nmen

ts h

ave

been

invi

ted

to in

trodu

ce p

ricin

g po

licie

s, im

plem

ent m

arke

t int

erve

ntio

n sc

hem

es, a

nd s

et u

p m

arke

t inf

orm

atio

n sy

stem

s.

88M

ARKE

T PO

LIC

IES

– M

arke

t reg

ulat

ion

Indi

aO

ctob

erEd

ible

oils

, oi

lsee

dsIn

Indi

a, fe

dera

l pro

visi

ons

limiti

ng th

e am

ount

of e

dibl

e oi

l and

oils

eed

stoc

ks th

at p

rivat

e tra

ders

are

al

low

ed to

hol

d ha

ve b

een

exte

nded

for a

noth

er y

ear u

ntil S

epte

mbe

r 201

7 (s

ee a

lso M

PPU

Oct

’15)

.The

pr

ovis

ion

is a

imed

at p

reve

ntin

g ho

ardi

ng a

nd u

nscr

upul

ous

tradi

ng w

hich

has

led

to u

pwar

d sp

irals

in

food

pric

es in

the

past

.

89M

ARKE

T PO

LIC

IES

– M

arke

t reg

ulat

ion

Indo

nesi

aO

ctob

erSo

ybea

nTh

e G

over

nmen

t of I

ndon

esia

revi

sed

the

refe

renc

e pr

ices

for b

asic

food

item

s, in

clud

ing

soyb

eans

. Th

e so

ybea

n fa

rm g

ate

floor

pric

e in

tend

ed t

o pr

otec

t fa

rmer

s ag

ains

t sh

arp

pric

e dr

ops

has

been

ra

ised

to ID

R 8

500

per k

g (U

SD 6

48 p

er to

nne)

, whi

le th

e pr

ice

ceilin

g m

eant

to p

rote

ct c

onsu

mer

from

pr

ice

surg

es h

as b

een

set a

t IDR

9 2

00 p

er k

g (U

SD 7

01 p

er to

nne)

. The

pric

e lim

its w

ill be

revi

ewed

ev

ery

four

mon

ths.

90M

ARKE

T PO

LIC

IES

– M

arke

t reg

ulat

ion

Mal

aysi

aN

ovem

ber

Edib

le o

ilsIn

Nov

embe

r, th

e G

over

nmen

t of

Mal

aysi

a in

trodu

ced

chan

ges

to t

he c

ount

ry’s

cook

ing

oil

pric

e st

abiliz

atio

n m

echa

nism

, to

add

ress

wea

knes

s fo

und

in t

he s

chem

e’s

man

agem

ent

and

beca

use

gove

rnm

ent o

utla

ys fo

r sub

sidi

zed

palm

oil

sale

s sw

elle

d du

e to

risi

ng p

alm

oil

pric

es. U

nder

the

new

ru

les,

low

-inco

me

grou

ps w

ill co

ntin

ue to

hav

e ac

cess

to 1

kg

cook

ing

oil p

acke

ts a

t a s

ubsi

dize

d pr

ice

of R

M 2

.50

per p

ack

(USD

0.5

7), w

here

as c

ooki

ng o

il in

bottl

es w

ill be

sol

d at

mar

ket p

rices

. Acc

ordi

ng

to g

over

nmen

t offi

cial

s, u

nder

the

new

arra

ngem

ent,

the

disc

ount

will

cont

inue

to re

ach

the

inte

nded

lo

wer

inco

me

grou

ps.

91M

ARKE

T PO

LIC

IES

– M

arke

t reg

ulat

ion

Nep

alM

ayEd

ible

oils

The

Gov

ernm

ent o

f Nep

al la

unch

ed a

n in

vest

igat

ion

into

sur

ging

reta

il pr

ices

for e

dibl

e oi

ls a

nd o

ther

es

sent

ial g

oods

, offi

cial

sou

rces

info

rmed

. Rep

orte

dly,

oil m

anuf

actu

rers

hav

e be

en a

sked

to p

rovi

de

deta

ils o

n th

eir c

osts

of p

rodu

ctio

n, s

tock

s, a

nd p

rice

setti

ng p

olic

ies.

92M

ARKE

T PO

LIC

IES

– Pu

blic

pro

cure

men

t &

stoc

khol

ding

Chi

naJa

nuar

yRa

pese

ed o

ilIn

Chi

na, s

ales

from

sta

te re

serv

es o

f rap

esee

d oi

l, w

hich

are

est

imat

ed to

tota

l 4–6

milli

on to

nnes

, re

sum

ed in

Dec

embe

r 20

15.

Out

of

64 0

00 t

onne

s off

ered

, on

ly 5

7 pe

rcen

t w

ere

sold

, se

emin

gly

refle

ctin

g qu

ality

issu

es, a

s pa

rt of

the

prod

uce

offer

ed h

ad b

een

kept

in s

tora

ge s

ince

200

9. L

ast y

ear,

the

gove

rnm

ent d

ecid

ed to

pha

se-o

ut p

ublic

pro

cure

men

t of r

apes

eed

(see

MPP

U J

uly’

15).

93M

ARKE

T PO

LIC

IES

– Pu

blic

pro

cure

men

t &

stoc

khol

ding

Chi

naJu

neRa

pese

ed o

ilSa

les

of r

apes

eed

oil f

rom

sta

te r

eser

ves

cont

inue

d in

Chi

na (s

ee a

lso M

PPU

Feb

.’16)

. Rep

orte

dly,

publ

ic a

uctio

ns h

eld

durin

g th

e m

onth

of J

une

2016

in 1

1 pr

ovin

ces

conc

erne

d ra

pese

ed o

il ba

tche

s he

ld in

sto

re s

ince

, res

pect

ivel

y, 20

11 a

nd 2

012.

In H

ubei

, the

pro

vinc

e re

cord

ing

the

high

est s

ales

, an

aver

age

pric

e of

CN

Y 5

385

per t

onne

(USD

803

) was

obt

aine

d.

18 Oilcrops complex: Policy changes and industry measures - Annual compendium 2016

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

94M

ARKE

T PO

LIC

IES

– Pu

blic

pro

cure

men

t &

stoc

khol

ding

Chi

naJu

lySo

ybea

nIn

Jul

y 20

16, t

he G

over

nmen

t of C

hina

resu

med

soy

bean

sal

es fr

om s

tate

rese

rves

via

wee

kly

auct

ions

(w

hich

last

took

pla

ce d

urin

g th

e 20

14/1

5 ca

mpa

ign)

, in

a bi

d to

hel

p ea

se ti

ght d

omes

tic s

uppl

ies.

Ba

sed

on o

ffici

al s

ourc

es, d

urin

g th

e fir

st th

ree

auct

ions

, whi

ch in

clud

ed s

oybe

ans

from

the

coun

try’s

2010

, 201

2 an

d 20

13 h

arve

sts,

a to

tal o

f 716

000

tonn

es h

ave

been

sol

d. R

epor

tedl

y, di

scou

nted

pric

es

– ra

ngin

g ar

ound

CN

Y 3

300

per t

onne

(USD

497

) – a

ttrac

ted

buye

rs fr

om b

oth

the

food

and

ani

mal

fe

ed s

ecto

rs.

Mar

ket

obse

rver

s ex

pect

the

gov

ernm

ent

to p

ut o

n sa

le it

s en

tire

soyb

ean

rese

rves

, w

hich

priv

ate

sour

ces

estim

ate

betw

een

4–6

milli

on to

nnes

. Pro

vide

d au

ctio

n pr

ices

rem

ain

attra

ctiv

e,

dem

and

by th

e in

dust

ry c

ould

rem

ain

stro

ng a

s th

e co

untry

’s fo

od s

ecto

r is

said

to fa

ce a

sho

rtage

of

non-

GM

soy

bean

s, w

hile

low

er-q

ualit

y be

ans

coul

d be

abs

orbe

d by

cru

sher

s th

at p

rodu

ce s

oym

eal f

or

anim

al fe

ed.

95M

ARKE

T PO

LIC

IES

– Pu

blic

pro

cure

men

t &

stoc

khol

ding

Chi

naAu

gust

Rape

seed

oil

In C

hina

, acc

ordi

ng to

priv

ate

sect

or e

stim

ates

, sin

ce th

e re

sum

ptio

n of

sal

es fr

om s

tate

rese

rves

in

Dece

mbe

r 201

5, 1

.8 m

illion

tonn

es o

f rap

esee

d oi

l hav

e be

en s

old

thro

ugh

publ

ic a

uctio

ns (s

ee a

lso

MPP

U J

uly’

16).

Addi

tiona

l sal

es a

re e

xpec

ted

to ta

ke p

lace

in th

e co

min

g m

onth

s.

96M

ARKE

T PO

LIC

IES

– Pu

blic

pro

cure

men

t &

stoc

khol

ding

Chi

naO

ctob

erSo

ybea

n,

rape

seed

oil

In C

hina

, acc

ordi

ng to

uno

ffici

al s

ourc

es, s

oybe

ans

sale

s fro

m s

tate

rese

rves

thro

ugh

wee

kly

auct

ions

ha

ve b

een

susp

ende

d in

Oct

ober

to fa

cilit

ate

mar

ketin

g of

the

new

201

6/17

cro

p. R

epor

tedl

y, as

of

23 S

epte

mbe

r, a to

tal o

f 1.5

7 m

illion

tonn

es o

f soy

bean

s was

sold

. Reg

ardi

ng ra

pese

ed o

il, st

ate

auct

ions

w

ere

susp

ende

d ba

ck in

Jun

e 20

16 (w

ith s

ales

tota

lling

2.28

milli

on to

nnes

bet

wee

n De

cem

ber 2

015

and

June

201

6), b

ut re

sum

ed in

Oct

ober

. Rep

orte

dly,

as o

f 19

Oct

ober

, 200

000

tonn

es o

f rap

esee

d oi

l ha

ve b

een

sold

via

auc

tions

.

97M

ARKE

T PO

LIC

IES

– Pu

blic

pro

cure

men

t &

stoc

khol

ding

Chi

naN

ovem

ber

Rape

seed

oil

In C

hina

, sin

ce th

e re

sum

ptio

n of

rape

seed

oil

sale

s fro

m s

tate

rese

rves

in m

id-O

ctob

er 2

016,

wee

kly

auct

ions

hav

e be

en h

eld.

As

of 2

3 N

ovem

ber,

a to

tal o

f 692

000

tonn

es h

ave

been

offe

red,

all

of w

hich

w

as b

ough

t by

trade

rs. T

he a

vera

ge a

uctio

n pr

ice

incr

ease

d gr

adua

lly, a

mou

ntin

g to

CN

Y 5

900

per

tonn

e in

mid

-Oct

ober

and

CN

Y 6

570

per t

onne

tow

ards

the

end

of N

ovem

ber (

resp

ectiv

ely,

USD

857

an

d U

SD 9

55).

98M

ARKE

T PO

LIC

IES

– Pu

blic

pro

cure

men

t &

stoc

khol

ding

Chi

naDe

cem

ber

Rape

seed

oil

Sinc

e th

eir

resu

mpt

ion

in O

ctob

er 2

016,

auc

tions

of r

apes

eed

oil f

rom

sta

te re

serv

es to

ok p

lace

on

a w

eekl

y ba

sis

in C

hina

. As

of 1

1 Ja

nuar

y 20

17, a

tota

l of 1

.39

milli

on to

nnes

of r

apes

eed

oil h

ave

been

offe

red,

virt

ually

all

of w

hich

has

bee

n bo

ught

by

trade

rs. A

fter p

eaki

ng a

t CN

Y 7

172

per t

onne

(U

SD 1

034

) in

mid

-Dec

embe

r, av

erag

e au

ctio

n pr

ices

dec

reas

ed g

radu

ally

to C

NY

6 54

9 pe

r ton

ne

(USD

944

).

99M

ARKE

T PO

LIC

IES

– Pu

blic

pro

cure

men

t &

stoc

khol

ding

Indi

aM

ayPa

lm o

ilAs

par

t of i

ts e

fforts

to e

nhan

ce d

omes

tic o

ilcro

p pr

oduc

tion

and

redu

ce th

e co

untry

’s de

pend

ence

on

veg

etab

le o

il im

ports

, In

dia’

s C

entra

l Gov

ernm

ent

deci

ded

to im

plem

ent

a m

arke

t in

terv

entio

n sy

stem

for p

alm

oil.

Und

er th

e ne

w s

chem

e, fr

esh

oil p

alm

frui

t bra

nche

s w

ill be

bou

ght f

rom

farm

ers

at IN

R 7

888

per t

onne

(USD

118

). Th

e m

ove

was

wel

com

ed b

y pa

lm o

il fa

rmer

s an

d pr

oces

sors

, who

su

ffere

d fro

m r

ecen

t pr

ice

drop

s. P

revi

ous

effor

ts t

o st

imul

ate

oil p

alm

cul

tivat

ion

faile

d to

pro

duce

th

e ho

ped-

for r

esul

ts. A

lthou

gh th

e go

vern

men

t ide

ntifi

ed s

ome

2 m

illion

hec

tare

s of

land

sui

tabl

e fo

r oi

l pal

m, c

ultiv

atio

n ha

s ex

pand

ed a

t a s

low

pac

e, w

ith c

urre

nt p

lant

ings

tota

lling

200

000

hect

ares

na

tionw

ide

(see

also

MPP

U J

uly/

Sep.

/Dec

.’15)

.

100

MAR

KET

POLI

CIE

S –

Publ

ic p

rocu

rem

ent &

st

ockh

oldi

ng

Indi

aM

ayC

opra

In A

pril 2

016,

the

publ

ic p

rocu

rem

ent o

f cop

ra a

t the

ann

ounc

ed m

inim

um su

ppor

t pric

e of

INR

5 95

0 pe

r to

nne

(USD

89)

com

men

ced

in K

eral

a St

ate.

Pro

cure

men

t is

hand

led

by c

ocon

ut p

rodu

cer c

ompa

nies

de

sign

ated

by t

he st

ate

leve

l pro

cure

men

t age

ncie

s, w

hile

NAF

ED (t

he N

atio

nal A

gric

ultu

ral C

oope

rativ

e M

arke

ting

Fede

ratio

n) is

resp

onsi

ble

for s

tora

ge o

pera

tions

.

Oilcrops complex: Policy changes and industry measures - Annual compendium 2016 19

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

101

MAR

KET

POLI

CIE

S –

Publ

ic p

rocu

rem

ent &

st

ockh

oldi

ng

Indi

aJu

neC

opra

With

mar

ket p

rices

for c

opra

dro

ppin

g be

low

INR

50 0

00 (U

SD 7

44) p

er to

nne,

on

15th

Jun

e 20

16, t

he

Tam

il Nad

u st

ate

gove

rnm

ent c

omm

ence

d pr

ocur

ing

copr

a fro

m fa

rmer

s. T

he n

atio

n-w

ide

supp

ort p

rice

of IN

R 59

500

(USD

886

) and

INR

62 4

00 (U

SD 9

29) p

er to

nne

will

be a

pplie

d fo

r, re

spec

tivel

y, m

illing

gr

ade

and

edib

le q

ualit

y co

pra.

Pro

cure

men

t ope

ratio

ns w

ill la

st fo

r six

mon

ths

and

will

be h

andl

ed b

y co

conu

t pro

duce

r coo

pera

tives

des

igna

ted

by th

e st

ate

leve

l pro

cure

men

t age

ncie

s.

102

MAR

KET

POLI

CIE

S –

Publ

ic p

rocu

rem

ent &

st

ockh

oldi

ng

Indi

aO

ctob

erC

ocon

utIn

Indi

a, t

he s

tate

gov

ernm

ent

of K

arna

taka

has

set

up

proc

urem

ent

cent

res

for

coco

nut

to a

ssis

t fa

rmer

s fa

ced

with

sev

ere

pric

e do

wnf

alls

. Rep

orte

dly,

coco

nuts

will

be p

rocu

red

at IN

R 1

600

per

quin

tal (

USD

240

per

tonn

e) in

six

dis

trict

s ac

ross

the

stat

e.

103

MAR

KET

POLI

CIE

S –

Publ

ic p

rocu

rem

ent &

st

ockh

oldi

ng

Indi

aN

ovem

ber

Gro

undn

utAc

know

ledg

ing

that

, in

Guj

arat

Sta

te,

this

yea

r’s b

umpe

r gr

ound

nut

crop

cau

sed

mar

ket

pric

es t

o fa

ll be

low

the

MSP

, Ind

ia’s

cent

ral g

over

nmen

t app

rove

d th

e pr

ocur

emen

t of u

nshe

lled

grou

ndnu

ts in

G

ujar

at a

t the

gua

rant

eed

pric

e of

INR

4 22

0 pe

r qui

ntal

(USD

626

per

tonn

e). T

he N

atio

nal A

gric

ultu

ral

Coo

pera

tive

Mar

ketin

g Fe

dera

tion

(NAF

ED) a

nd th

e Sm

all F

arm

ers’

Agr

ibus

ines

s C

onso

rtium

(SFA

C)

have

bee

n en

trust

ed w

ith th

e pr

ocur

emen

t ope

ratio

n. W

ith a

vie

w to

ass

ist a

ffect

ed fa

rmer

s fu

rther

, the

co

untry

’s ed

ible

oil

indu

stry

ass

ocia

tion

also

app

eale

d to

the

gove

rnm

ent t

o al

low

the

expo

rtatio

n of

gr

ound

nut o

il in

bul

k. C

urre

ntly,

gro

undn

ut o

il ex

ports

are

onl

y pe

rmitt

ed in

con

sum

er p

acks

of 5

kg,

at

a fix

ed m

inim

um p

rice

(see

MPP

U M

ar’1

5).

104

MAR

KET

POLI

CIE

S –

Publ

ic p

rocu

rem

ent &

st

ockh

oldi

ng

Thai

land

M

arch

Palm

oil

The

Gov

ernm

ent o

f Tha

iland

ann

ounc

ed th

at it

will

buy

up to

100

000

tonn

es o

f pal

m o

il, s

houl

d pa

lm

fruit

pric

es d

rop

belo

w a

cer

tain

leve

l. Re

cent

ly, r

ecor

d-hi

gh p

alm

oil

inve

ntor

ies

have

driv

en d

own

prod

ucer

pric

es, t

hrea

teni

ng th

e in

com

es o

f gro

wer

s. P

ublic

pro

cure

men

t will

be tr

igge

red

whe

n th

e pr

oduc

er p

rice

of fr

esh

fruit

bunc

hes

drop

s be

low

TH

B 4.

20 p

er k

g (U

SD 1

20 p

er to

nne)

. Far

m-g

ate

pric

es a

re to

be

supp

orte

d in

dire

ctly

thro

ugh

gove

rnm

ent p

urch

ases

of c

rude

pal

m o

il fro

m e

xtra

ctio

n pl

ants

, at T

HB

26.2

0 pe

r kg

(USD

760

per

tonn

e).

105

MAR

KET

POLI

CIE

S –

Publ

ic p

rocu

rem

ent &

st

ockh

oldi

ng

Uni

ted

Stat

esM

arch

Gro

undn

utIn

Mar

ch 2

016,

the

USD

A au

thor

ized

paym

ents

to g

roun

dnut

pro

duce

rs in

four

Sta

tes

to h

elp

them

re

cove

r nea

rly 1

00 p

erce

nt o

f the

val

ue o

f pro

duce

they

had

lost

follo

win

g th

e ba

nkru

ptcy

of a

gro

undn

ut

proc

esso

r and

lice

nsed

war

ehou

se o

pera

tor.

Und

er th

e U

S W

areh

ouse

Act

, USD

A is

resp

onsi

ble

for

prot

ectin

g al

l dep

osito

rs in

lice

nsed

sto

rage

fac

ilitie

s. T

he 1

00 y

ears

-old

Act

pro

vide

s ag

ricul

tura

l pr

oduc

ers

with

hig

h-qu

ality

sto

rage

of f

arm

pro

duct

s so

as

to a

llow

mar

ketin

g th

roug

hout

the

year

.

106

TRAD

E PO

LIC

IES

– Im

port

mea

sure

s -

tariff

s &

levie

s

Col

ombi

aM

ayVe

geta

ble

oils

Col

ombi

a’s

impo

rt du

ty o

n oi

ls/fa

ts a

nd d

eriv

ed p

rodu

cts

has

been

sus

pend

ed u

ntil 2

9 Au

gust

201

6, to

ad

dres

s re

cent

mar

ket s

horta

ges

aris

ing

from

a s

low

dow

n in

impo

rts. T

he s

low

dow

n ha

s be

en lin

ked

to

the

stro

ng d

epre

ciat

ion

of C

olom

bia’

s cu

rrenc

y ag

ains

t the

US

dolla

r, es

peci

ally

as

the

US

curre

ncy

has

beco

me

the

lega

l ten

der i

n Ec

uado

r, C

olom

bia’

s se

cond

larg

est s

uppl

ier o

f edi

ble

oil (

afte

r the

Uni

ted

Stat

es).

Desp

ite b

eing

Lat

in A

mer

ica’

s le

adin

g pa

lm o

il pro

duce

r, C

olom

bia

is a

net

impo

rter o

f oils

/fats

.

107

TRAD

E PO

LIC

IES

– Im

port

mea

sure

s -

tariff

s &

levie

s

Indi

aO

ctob

erPa

lm o

il,

edib

le o

ilsAs

par

t of e

fforts

to c

heck

food

pric

e in

flatio

n, th

e G

over

nmen

t of I

ndia

dec

ided

to lo

wer

the

impo

rt du

ties

on c

rude

pal

m o

il and

refin

ed e

dibl

e oi

ls b

y 5

perc

enta

ge p

oint

s to

, res

pect

ivel

y, 7.

5 pe

rcen

t and

15

per

cent

. Rep

orte

dly,

the

low

er d

utie

s w

ill re

mai

n in

pla

ce u

ntil e

nd F

ebru

ary

2017

. Mar

ket o

bser

vers

po

inte

d ou

t tha

t the

tem

pora

ry re

duct

ion

in d

utie

s co

uld

harm

the

com

mer

cial

izatio

n of

the

coun

try’s

bum

per 2

016/

17 o

ilcro

p ha

rves

t.

108

TRAD

E PO

LIC

IES

– Im

port

mea

sure

s -

tariff

s &

levie

s

Russ

ian

Fede

ratio

nJa

nuar

ySo

ybea

nRu

ssia

’s Fe

dera

l Ser

vice

for V

eter

inar

y an

d Ph

ytos

anita

ry S

urve

illanc

e re

porte

d pe

st c

onta

min

atio

n in

a

num

ber o

f soy

bean

shi

pmen

ts re

ceiv

ed fr

om th

e U

nite

d St

ates

. The

age

ncy

is h

oldi

ng c

onsu

ltatio

ns

with

the

conc

erne

d su

pplie

rs a

nd c

ould

con

side

r im

posi

ng te

mpo

rary

impo

rt re

stric

tions

. Dur

ing

2014

-15

, tot

al U

S so

ybea

n sh

ipm

ents

to th

e Ru

ssia

n Fe

dera

tion

have

clim

bed

to a

reco

rd 2

milli

on to

nnes

.

20 Oilcrops complex: Policy changes and industry measures - Annual compendium 2016

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

109

TRAD

E PO

LIC

IES

– Im

port

mea

sure

s -

tariff

s &

levie

s

Sri L

anka

Ju

lyVe

geta

ble

oils

In M

ay 1

016,

the

Gov

ernm

ent o

f Sri

Lank

a ra

ised

the

impo

rt le

vy fo

r veg

etab

le o

ils b

y LK

R 20

/kg.

The

ne

w le

vies

for

crud

e oi

ls a

nd re

fined

oils

are

, res

pect

ivel

y, LK

R 13

0/kg

(USD

0.8

9) a

nd L

KR 1

50/k

g (U

SD 1

.03)

.

110

TRAD

E PO

LIC

IES

– Im

port

mea

sure

s -

tariff

s &

levie

s

Sri L

anka

O

ctob

erVe

geta

ble

oils

The

spec

ial c

omm

odity

levy

cha

rged

on

impo

rted

vege

tabl

e oi

ls to

pro

tect

dom

estic

oils

eed

prod

ucer

s an

d oi

l pro

cess

ors

has

been

rais

ed b

y LK

R 20

/kg

in J

une

2016

(see

also

MPP

U A

ug.’1

6). T

he n

ew le

vies

fo

r cru

de a

nd re

fined

oil

are,

resp

ectiv

ely,

LKR

150/

kg (U

SD 1

.02)

and

LKR

170

/kg

(USD

1.1

5).

111

TRAD

E PO

LIC

IES

– Im

port

mea

sure

s -

tariff

s &

levie

s

Turk

eySe

ptem

ber

Saffl

ower

se

ed,

sunfl

ower

oil

In S

epte

mbe

r 201

6, T

urke

y ra

ised

its

impo

rt du

ties

on s

afflow

er s

eed

and

sunfl

ower

oil t

o pr

even

t low

er

impo

rt pr

ices

from

hur

ting

dom

estic

pro

duce

rs a

nd c

rush

ers.

The

tariff

rate

s fo

r saffl

ower

seed

, cru

de

sunfl

ower

oil

and

refin

ed s

unflo

wer

oil

have

bee

n se

t at

, res

pect

ivel

y, 23

.4 p

erce

nt, 3

6 pe

rcen

t an

d 67

.5 p

erce

nt –

com

pare

d to

, pre

viou

sly,

4 pe

rcen

t, 12

per

cent

and

50

perc

ent.

112

TRAD

E PO

LIC

IES

– Im

port

mea

sure

s -

tariff

s &

levie

s

Vene

zuel

a (B

oliv

aria

n Re

publ

ic o

f)

Oct

ober

Sele

cted

oi

lcro

psTh

e G

over

nmen

t of t

he B

oliv

aria

n G

over

nmen

t of V

enez

uela

dec

ided

to s

uspe

nd fo

r one

yea

r – s

tarti

ng

on 2

7 O

ctob

er 2

016

– th

e im

port

tariff

s an

d va

lue

adde

d ta

xes

for a

gric

ultu

ral p

rodu

cts

char

acte

rized

by

dom

estic

sup

ply

defic

its. S

oybe

ans,

soy

bean

oil,

soy

mea

l, gr

ound

nuts

, cru

de p

alm

oil a

nd b

utte

r are

in

clud

ed in

the

list o

f exe

mpt

ed p

rodu

cts.

113

TRAD

E PO

LIC

IES

– Im

port

mea

sure

s -

tariff

s &

levie

s

Viet

Nam

Janu

ary

Gro

undn

utVi

et N

am li

fted

its te

mpo

rary

ban

on

grou

ndnu

t im

ports

from

Indi

a. T

he b

an w

as im

pose

d in

Apr

il 20

15

follo

win

g th

e de

tect

ion

of q

uara

ntin

e pe

sts

in In

dian

car

goes

. The

ban

was

lifte

d ba

sed

on e

vide

nce

that

Indi

a ha

s up

grad

ed it

s gr

ound

nut f

umig

atio

n fa

cilit

ies,

exp

ort p

roce

dure

s an

d ce

rtific

atio

n sy

stem

.

114

TRAD

E PO

LIC

IES

– Im

port

mea

sure

s -

tariff

s &

levie

s

Viet

Nam

May

Vege

tabl

e oi

lsVi

et N

am’s

impo

rt ta

x on

veg

etab

le o

il tra

nsac

tions

– in

trodu

ced

as a

tem

pora

ry s

afeg

uard

mea

sure

in

201

3 (s

ee M

PPU

Sep

.’13)

– w

as lo

wer

ed t

o 2

perc

ent

in M

ay 2

016

and

is p

oise

d to

be

phas

ed

out i

n M

ay 2

017.

Alth

ough

the

tax

was

intro

duce

d to

pro

tect

loca

l pro

duce

rs, t

he m

arke

t sha

res

of

impo

rted

prod

ucts

are

repo

rted

to h

ave

incr

ease

d fu

rther

in th

e la

st fe

w y

ears

, sug

gest

ing

cont

inue

d lo

w c

ompe

titiv

enes

s of

loca

l pro

duct

ion.

115

TRAD

E PO

LIC

IES

– Im

port

mea

sure

s -

non-

tariff

Arge

ntin

aJa

nuar

ySo

ybea

nDu

ring

the

seco

nd h

alf o

f Dec

embe

r 201

5, A

rgen

tina’

s inc

omin

g go

vern

men

t fol

low

ed u

p on

its p

ledg

e to

lib

eral

ize tr

ade

in a

gric

ultu

ral c

omm

oditi

es (s

ee M

PPU

Dec

.’15)

. With

rega

rd to

impo

rts, t

he g

over

nmen

t si

mpl

ified

the

pro

cedu

re f

or s

oybe

ans

impo

rted

(not

ably

fro

m P

arag

uay

and

Braz

il) fo

r su

bseq

uent

ex

porta

tion

in th

e fo

rm o

f oil

and

mea

l, a

mea

sure

mea

nt to

faci

litat

e do

mes

tic c

rush

ing

whe

n lo

cal

proc

esso

rs w

ork

belo

w c

apac

ity, i

.e. t

he w

eeks

pre

cedi

ng d

omes

tic h

arve

stin

g.

116

TRAD

E PO

LIC

IES

– Im

port

mea

sure

s -

non-

tariff

Chi

naM

ayVe

geta

ble

oils

Chi

na’s

food

sta

ndar

ds a

genc

y pr

opos

ed t

hat

impo

rters

of

certa

in p

rodu

cts

be r

equi

red

to r

evie

w

rele

vant

doc

umen

ts a

nd c

ondu

ct o

n-si

te in

spec

tions

of f

orei

gn e

stab

lishm

ents

from

whi

ch th

ey in

tend

to

sou

rce

prod

ucts

. The

dra

ft m

easu

re is

mea

nt to

ens

ure

that

Chi

na-b

ound

food

s co

mpl

y fu

lly w

ith th

e re

quire

men

ts o

f nat

iona

l law

s an

d re

gula

tions

. The

list

of p

rodu

cts

for w

hich

on-

site

revi

ew o

f for

eign

su

pplie

rs w

ould

be

man

dato

ry, i

nclu

des

bulk

veg

etab

le o

il.

117

TRAD

E PO

LIC

IES

– Im

port

mea

sure

s -

non-

tariff

Chi

na/C

anad

aFe

brua

ryRa

pese

edIn

Feb

ruar

y, C

hine

se q

uara

ntin

e au

thor

ities

info

rmed

thei

r Can

adia

n co

unte

rpar

ts th

at, a

s of

Apr

il 201

6,

no m

ore

than

one

per

cent

of f

orei

gn m

ater

ial w

ould

be

allo

wed

in C

anad

ian

rape

seed

shi

pmen

ts (a

s op

pose

d to

the

2.0

–2.5

per

cent

ran

ge p

erm

itted

to

date

). G

over

nmen

t ex

perts

from

bot

h co

untri

es

wor

ked

toge

ther

sin

ce 2

009

to a

ddre

ss C

hina

’s co

ncer

n th

at th

e bl

ackl

eg fu

ngal

dis

ease

cou

ld s

prea

d w

ithin

its

terri

tory

via

the

impo

rtatio

n of

infe

cted

rape

seed

from

Can

ada

(see

MPP

U D

ec.’0

9, J

uly’

10 &

Se

p.’1

4). C

hina

’s re

cent

ann

ounc

emen

t fol

low

s sc

ient

ific

disa

gree

men

t ove

r the

risk

of t

rans

mitt

ing

the

dise

ase

thro

ugh

fore

ign

mat

eria

l in

rape

seed

car

goes

. Can

adia

n in

dust

ry o

ffici

als

war

ned

that

Chi

na’s

stric

ter

stan

dard

wou

ld b

e di

fficu

lt to

mee

t and

mak

e cl

eani

ng o

pera

tions

mor

e ex

pens

ive,

pos

sibl

y di

scou

ragi

ng e

xpor

ts. I

n 20

15, C

hina

was

the

top

buye

r of C

anad

ian

rape

seed

, im

porti

ng 4

.1 m

illion

to

nnes

.

Oilcrops complex: Policy changes and industry measures - Annual compendium 2016 21

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

118

TRAD

E PO

LIC

IES

– Im

port

mea

sure

s -

non-

tariff

Chi

na/C

anad

aM

arch

Rape

seed

Chi

na a

gree

d to

del

ay th

e im

plem

enta

tion

of it

s st

ringe

nt s

tand

ard

on ra

pese

ed im

ports

from

Can

ada

from

Apr

il to

Sept

embe

r of t

his

year

(see

also

MPP

U M

ar.’1

6). T

he n

ew s

tand

ard,

whi

ch w

as d

evis

ed to

re

duce

the

risk

of b

lack

leg

dise

ase

spre

adin

g to

Chi

na, l

imits

the

allo

wed

con

tent

of f

orei

gn m

ater

ial i

n sh

ipm

ents

to 1

per

cent

, whi

ch c

ompa

res

to a

cur

rent

ly a

pplie

d lim

it of

2.5

per

cent

. Can

ada’

s ra

pese

ed

indu

stry

mai

ntai

ns th

at th

e st

ricte

r req

uire

men

t is

not s

cien

tifica

lly ju

stifi

ed a

nd h

opes

that

the

5-m

onth

de

lay

for i

ts in

trodu

ctio

n w

ill al

low

bot

h si

des

to c

ome

to a

long

-term

agr

eem

ent.

119

TRAD

E PO

LIC

IES

– Im

port

mea

sure

s -

non-

tariff

Chi

na/C

anad

aAu

gust

Rape

seed

Chi

na a

gree

d to

furth

er d

elay

the

impl

emen

tatio

n of

stri

ngen

t rul

es o

n ra

pese

ed im

ports

from

Can

ada

(see

MPP

U M

ar./A

pr.’1

6). M

eant

to re

duce

the

risk

of b

lack

leg

dise

ase

spre

adin

g to

Chi

na, t

he n

ew

stan

dard

– w

hich

wou

ld ra

ise

cost

s for

Can

adia

n ex

porte

rs –

was

due

to c

ome

into

forc

e on

1 S

epte

mbe

r 20

16. R

epor

tedl

y, eff

orts

to a

chie

ve a

long

-term

agr

eem

ent (

acce

ptab

le to

bot

h si

des)

on

the

term

s of

C

anad

a’s

rape

seed

shi

pmen

ts w

ill be

ste

pped

up.

In C

anad

a, in

dust

ry e

xper

ts s

aid

that

, in

view

of t

he

rem

aini

ng u

ncer

tain

ties,

exp

orte

rs c

ould

del

ay th

eir s

hipm

ents

to C

hina

unt

il an

acc

ord

is re

ache

d. O

n th

e ot

her h

and,

priv

ate

sour

ces

repo

rted

that

som

e fir

ms

alre

ady

mad

e sm

all s

ales

to C

hina

con

form

ing

to th

e st

ricte

r ter

ms.

120

TRAD

E PO

LIC

IES

– Im

port

mea

sure

s -

non-

tariff

Chi

na/C

anad

aO

ctob

erRa

pese

edG

over

nmen

t offi

cial

s fro

m C

anad

a an

d C

hina

sig

ned

a M

oU t

o fa

cilit

ate

smoo

th i

mpo

rtatio

n of

C

anad

ian

rape

seed

into

Chi

na, t

hus

endi

ng y

ears

-long

neg

otia

tions

ove

r ph

ytos

anita

ry m

easu

res

to

prev

ent t

he s

prea

ding

of b

lack

leg

dise

ase

from

Can

ada

into

Chi

na (s

ee M

PPU

Dec

’09

& Se

p’16

). By

al

low

ing

rape

seed

exp

orts

to c

ontin

ue u

nder

the

exis

ting

cond

ition

s, th

e ag

reem

ent p

rovi

des

for s

tabl

e an

d pr

edic

tabl

e tra

de fl

ows.

At t

he s

ame

time,

bot

h co

untri

es c

omm

itted

to c

ontin

ue th

eir c

olla

bora

tive

scie

ntifi

c w

ork

on a

ppro

pria

te ri

sk m

itiga

tion

mea

sure

s.

121

TRAD

E PO

LIC

IES

– Im

port

mea

sure

s -

non-

tariff

Indo

nesi

aJa

nuar

ySo

ybea

nTh

e G

over

nmen

t of I

ndon

esia

aut

horiz

ed s

oybe

an im

ports

by

BULO

G, t

he s

tate

-run

Nat

iona

l Log

istic

s Ag

ency

, dur

ing

2016

. BU

LOG

will

be in

cha

rge

of s

ellin

g so

ybea

ns o

n th

e do

mes

tic m

arke

t to

stab

ilize

loca

l soy

food

pric

es. V

olum

es to

be

impo

rted

have

not

bee

n sp

ecifi

ed. A

ll im

ports

hav

e to

be

asso

ciat

ed

with

an

equa

l am

ount

of p

urch

ases

of l

ocal

ly g

row

n so

ybea

ns. S

imila

r pol

icie

s ha

ve b

een

impl

emen

ted

in p

ast y

ears

, with

a v

iew

to s

timul

ate

loca

l pro

duct

ion

(see

MPP

U D

ec.’1

3 &

Feb.

’14)

.

122

TRAD

E PO

LIC

IES

– Im

port

mea

sure

s -

non-

tariff

Russ

ian

Fede

ratio

n/C

hina

Janu

ary

Gra

ins,

oi

lsee

dsTh

e tw

o co

untri

es s

igne

d ph

ytos

anita

ry p

roto

cols

that

will

allo

w th

e ex

porta

tion

of s

oybe

an, r

apes

eed,

w

heat

, mai

ze a

nd ri

ce g

row

n in

sel

ecte

d pr

ovin

ces

in F

area

st R

ussi

a to

Chi

na.

123

TRAD

E PO

LIC

IES

– Im

port

mea

sure

s -

non-

tariff

Russ

ian

Fede

ratio

nFe

brua

rySo

ybea

nIn

Feb

ruar

y, th

e Ru

ssia

n Ve

terin

ary

and

Phyt

osan

itary

Sur

veilla

nce

Serv

ice

impo

sed

tem

pora

ry

rest

rictio

ns o

n im

ports

of s

oybe

an a

nd m

aize

orig

inat

ing

from

the

Uni

ted

Stat

es, c

iting

vio

latio

ns o

f ph

ytos

anita

ry re

quire

men

ts. A

s Ru

ssia

n so

ybea

n im

ports

from

the

Uni

ted

Stat

es ty

pica

lly o

ccur

from

O

ctob

er to

Feb

ruar

y, lim

ited

imm

edia

te re

perc

ussi

ons

on tr

ade

are

expe

cted

. Unt

ouch

ed b

y Ru

ssia

’s fo

od im

port

emba

rgoe

s of

201

4 (fo

llow

ing

the

Ukr

aini

an c

risis

), in

201

5, s

oybe

ans

beca

me

the

num

ber

one

US

agric

ultu

ral e

xpor

t to

Russ

ia. T

he U

nite

d St

ates

is c

urre

ntly

the

third

mos

t im

porta

nt s

uppl

ier o

f th

e Ru

ssia

n Fe

dera

tion,

afte

r Par

agua

y an

d Br

azil.

22 Oilcrops complex: Policy changes and industry measures - Annual compendium 2016

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

124

TRAD

E PO

LIC

IES

– Im

port

mea

sure

s -

non-

tariff

Sri L

anka

Ju

lyC

ocon

ut o

ilBl

amin

g po

or a

dher

ence

to in

tern

atio

nal q

ualit

y st

anda

rds

for t

he re

cent

dro

p in

the

coun

try’s

coco

nut

oil e

xpor

ts, t

he G

over

nmen

t of S

ri La

nka

wor

ked

on m

easu

res

to e

nsur

e th

at, f

rom

201

7, o

nly

coco

nut

oil p

rodu

cts

mee

ting

inte

rnat

iona

l sta

ndar

ds a

re e

xpor

ted.

Rec

urre

nt p

robl

ems

affec

ting

coco

nut o

il sh

ipm

ents

are

sai

d to

incl

ude

fung

us c

onta

min

atio

n an

d hi

gh re

sidu

e le

vels

of p

last

icid

es a

nd p

olyc

yclic

ar

omat

ic h

ydro

carb

ons.

Rep

orte

dly,

the

gove

rnm

ent i

s re

ady

to e

nfor

ce a

new

nat

iona

l sta

ndar

d on

fo

od s

afet

y m

anag

emen

t, an

d pr

oduc

ers

are

requ

ired

to o

btai

n ce

rtific

atio

n pr

ior t

o ex

porta

tion.

125

TRAD

E PO

LIC

IES

– Ex

port

mea

sure

s -

tariff

& n

on-ta

riff

Arge

ntin

aJa

nuar

yG

rain

s,

oils

eeds

Durin

g th

e se

cond

hal

f of D

ecem

ber 2

015,

Arg

entin

a’s

inco

min

g go

vern

men

t fol

low

ed u

p on

its

pled

ge

to li

bera

lize

trade

in a

gric

ultu

ral c

omm

oditi

es (s

ee M

PPU

Dec

.’15)

. With

resp

ect t

o oi

lsee

ds, t

he e

xpor

t ta

x on

soy

bean

s an

d so

ybea

n pr

oduc

ts w

as im

med

iate

ly lo

wer

ed b

y 5

perc

enta

ge p

oint

s, w

ith fu

rther

re

duct

ions

to

be e

ffect

ed in

the

com

ing

year

s un

til it

s co

mpl

ete

elim

inat

ion.

In 2

016,

soy

bean

and

so

yoil/

mea

l exp

orts

are

taxe

d, re

spec

tivel

y, 30

and

27

perc

ent.

By c

ontra

st, t

he ta

x on

sun

flow

er s

eed/

oil/m

eal (

35 p

erce

nt),

grou

ndnu

ts (5

– 2

3.5

perc

ent)

and

grou

ndnu

t oil

(5 p

erce

nt) h

as b

een

elim

inat

ed

in a

sin

gle

go –

as

for

whe

at, m

aize

and

bee

f. Fu

rther

mor

e, th

e ex

port

quot

as fo

r w

heat

and

mai

ze

have

bee

n re

mov

ed a

nd th

e ex

port

perm

it sy

stem

for g

rain

s an

d oi

lsee

ds re

plac

ed w

ith a

mec

hani

sm

track

ing

expo

rts. F

urth

er m

easu

res

take

n by

the

gove

rnm

ent i

nclu

de a

lifti

ng o

f all

curre

ncy

cont

rols

, w

hich

, by

caus

ing

an a

lmos

t 45

deva

luat

ion

of th

e Ar

gent

ine

peso

, enh

ance

d th

e co

mpe

titiv

enes

s of

Ar

gent

ina’

s co

mm

oditi

es in

wor

ld m

arke

ts a

nd im

prov

ed fa

rmer

retu

rns.

Mar

ket o

bser

vers

exp

ect g

rain

an

d oi

lsee

d ex

ports

to e

xpan

d sh

arpl

y in

the

com

ing

mon

ths,

as

prod

ucer

s go

ahe

ad w

ith s

ales

that

w

ere

held

up

in a

ntic

ipat

ion

of p

ossi

ble

polic

y ch

ange

s or

as

a m

eans

of h

edgi

ng a

gain

st in

flatio

n.

Furth

erm

ore,

in th

e 20

16/1

7 se

ason

, far

mer

s ar

e lik

ely

to e

xpan

d pl

antin

gs o

f whe

at a

nd m

aize

(the

two

prod

ucts

ben

efitin

g m

ost f

rom

the

refo

rms)

, pos

sibl

y at

the

expe

nse

of s

oybe

ans.

126

TRAD

E PO

LIC

IES

– Ex

port

mea

sure

s -

tariff

& n

on-ta

riff

Arge

ntin

aFe

brua

ryBi

odie

sel

In F

ebru

ary

2016

, Arg

entin

a’s

expo

rt du

ty o

n so

yoil-

base

d bi

odie

sel w

as ra

ised

from

1.6

2 pe

rcen

t – th

e lo

wes

t rat

e si

nce

the

intro

duct

ion

of th

e va

riabl

e ta

x re

gim

e in

201

2 –

to 3

.89

perc

ent.

127

TRAD

E PO

LIC

IES

– Ex

port

mea

sure

s -

tariff

& n

on-ta

riff

Arge

ntin

aM

arch

Biod

iese

lIn

Mar

ch 2

016,

Arg

entin

a’s

expo

rt du

ty o

n bi

odie

sel w

as ra

ised

to 6

.4 p

erce

nt. T

his

follo

ws

an in

crea

se

in F

ebru

ary

to 3

.89

perc

ent f

rom

a h

isto

rical

low

of 1

.62

perc

ent i

n Ja

nuar

y. Th

e m

anda

tory

bio

dies

el

blen

ding

rate

for t

rans

port

dies

el re

mai

ns u

ncha

nged

at 1

0 pe

rcen

t, th

e le

vel i

n pl

ace

sinc

e Ja

nuar

y 20

14.

128

TRAD

E PO

LIC

IES

– Ex

port

mea

sure

s -

tariff

& n

on-ta

riff

Arge

ntin

aAu

gust

Soyb

ean

Acco

rdin

g to

loca

l pre

ss re

ports

, gov

ernm

ent o

ffici

als

stat

ed th

at th

e gr

adua

l red

uctio

n (a

nd e

vent

ual

rem

oval

) of A

rgen

tina’

s ex

port

tax

on s

oybe

ans

– a

pled

ge m

ade

by th

e in

com

ing

adm

inis

tratio

n at

the

end

of la

st y

ear (

see

MPP

U D

ec.’1

5 &

Feb.

’16)

– c

ould

take

long

er th

an o

rigin

ally

env

isag

ed, l

inki

ng

the

anno

unce

men

t to

the

cou

ntry

’s on

goin

g ec

onom

ic r

eces

sion

. Afte

r a

first

red

uctio

n (fr

om 3

5 to

30

per

cent

) in

Dece

mbe

r 201

5, fa

rmer

s w

ere

expe

ctin

g th

e le

vy to

be

low

ered

by

anot

her 5

per

cent

age

poin

ts e

arly

nex

t yea

r, i.e

. bef

ore

the

star

t of t

he 2

016/

17 s

oybe

an m

arke

ting

cam

paig

n.

129

TRAD

E PO

LIC

IES

– Ex

port

mea

sure

s -

tariff

& n

on-ta

riff

Arge

ntin

aAu

gust

Biod

iese

lIn

May

, Jun

e, Ju

ly a

nd A

ugus

t of t

his y

ear, A

rgen

tine

expo

rts o

f bio

dies

el h

ave

been

taxe

d at

, res

pect

ivel

y, 3.

96 p

erce

nt, 5

.04

perc

ent,

7.15

per

cent

and

4.9

9 pe

rcen

t. Th

e ci

rcum

stan

ce th

at, s

ince

mid

-201

5, th

e go

vern

men

t mod

ified

the

tax

on a

mon

thly

bas

is h

as p

rom

pted

the

loca

l bio

dies

el in

dust

ry to

cal

l for

le

ss fr

eque

nt c

hang

es s

o as

not

to d

isru

pt it

s bu

sine

ss.

Oilcrops complex: Policy changes and industry measures - Annual compendium 2016 23

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

130

TRAD

E PO

LIC

IES

– Ex

port

mea

sure

s -

tariff

& n

on-ta

riff

Arge

ntin

aO

ctob

erSo

ybea

nTh

e Ar

gent

ine

Gov

ernm

ent d

ecid

ed to

pos

tpon

e a

plan

ned

redu

ctio

n of

soy

bean

exp

ort t

axes

to 2

018.

O

rigin

ally,

the

cut h

ad b

een

sche

dule

d fo

r end

201

6 or

ear

ly 2

017

(see

MPP

U D

ec.’1

5 &

Feb.

’16)

. Now

, th

e ex

port

tax

will

be re

duce

d –

star

ting

in J

anua

ry 2

018

– by

0.5

per

cent

age

poin

ts e

ach

mon

th u

ntil

Dece

mbe

r 201

9. A

ccor

ding

ly, b

y en

d 20

19, s

oybe

an e

xpor

ts w

ill be

taxe

d at

18

perc

ent –

com

pare

d to

th

e cu

rrent

rate

of 3

0 pe

rcen

t. In

the

mea

ntim

e, h

owev

er, s

oybe

an p

rodu

cers

in th

e co

untry

’s is

olat

ed,

north

ern

regi

on w

ill en

joy

a ta

x be

nefit

– a

s a

com

pens

atio

n fo

r hig

her t

rans

porta

tion

cost

s. F

rom

Mar

ch

2017

onw

ard,

soy

gro

wer

s in

the

coun

try’s

10 n

orth

ern

prov

ince

s (w

hich

lie

outs

ide

the

coun

try’s

mai

n so

ybea

n be

lt) w

ill be

pro

vide

d w

ith a

n ex

port

tax

refu

nd e

quiv

alen

t to

5 pe

rcen

t of t

he fr

ee-o

n-bo

ard

soyb

ean

pric

e.

131

TRAD

E PO

LIC

IES

– Ex

port

mea

sure

s -

tariff

& n

on-ta

riff

Arge

ntin

aDe

cem

ber

Soyb

ean

The

Gov

ernm

ent o

f Arg

entin

a co

nfirm

ed th

at, d

urin

g 20

17, t

he c

ount

ry’s

expo

rt ta

x on

soy

bean

s w

ill re

mai

n un

chan

ged

at 3

0 pe

rcen

t, w

here

as b

etw

een

Janu

ary

2018

and

Dec

embe

r 201

9 it

will

be re

duce

d by

0.5

per

cent

age

poin

ts e

ach

mon

th u

ntil

it re

ache

s 18

per

cent

(see

also

MPP

U N

ov’1

6). T

he s

ame

half-

poin

t-per

-mon

th re

duct

ion

will

appl

y to

the

coun

try’s

expo

rt du

ties

on s

oym

eal a

nd s

oyoi

l, w

hich

cu

rrent

ly s

tand

at 2

7 pe

rcen

t.

132

TRAD

E PO

LIC

IES

– Ex

port

mea

sure

s -

tariff

& n

on-ta

riff

Indo

nesi

aFe

brua

ryPa

lmke

rnel

sh

ell

In a

n eff

ort

to e

ase

the

finan

cial

situ

atio

n of

pal

m o

il pr

oduc

ers

faci

ng lo

w w

orld

pric

es, I

ndon

esia

te

mpo

raril

y lo

wer

ed th

e ex

port

levy

on

palm

kern

el s

hell,

a s

olid

by-

prod

uct o

f the

pal

m o

il ex

tract

ion

proc

ess u

sed

as fe

edst

ock

in p

ower

gen

erat

ion.

Unt

il the

end

of 2

016,

a re

duce

d le

vy o

f USD

3 p

er to

nne

will

be c

olle

cted

. How

ever

, to

enco

urag

e in

vest

men

ts in

bio

mas

s-fir

ed p

ower

pla

nts,

the

levy

sha

ll be

ra

ised

aga

in in

201

7, in

itial

ly to

USD

5 p

er to

nne

and

then

bac

k to

its

orig

inal

leve

l of U

SD 1

0 pe

r ton

ne.

133

TRAD

E PO

LIC

IES

– Ex

port

mea

sure

s -

tariff

& n

on-ta

riff

Indo

nesi

a/M

alay

sia

Janu

ary

Palm

oil

With

pal

m o

il re

fere

nce

pric

es r

emai

ning

bel

ow t

he t

rigge

r le

vel o

f USD

750

per

ton

ne, I

ndon

esia

’s ex

port

tax

for c

rude

pal

m o

il w

ill be

kep

t at z

ero

in F

ebru

ary

2016

. The

exp

ort t

ax h

as b

een

susp

ende

d si

nce

Oct

ober

201

4. In

Mal

aysi

a, in

Feb

ruar

y 20

16, t

he ta

x on

pal

m o

il ex

ports

will

rem

ain

at z

ero

as

the

prod

uct’s

refe

renc

e pr

ice

has

rem

aine

d be

low

the

MYR

2 2

50 (U

SD 5

42) p

er to

nne

thre

shol

d th

at

trigg

ers

taxa

tion.

The

exp

ort t

ax h

as b

een

susp

ende

d si

nce

May

201

5.

134

TRAD

E PO

LIC

IES

– Ex

port

mea

sure

s -

tariff

& n

on-ta

riff

Indo

nesi

a/M

alay

sia

Febr

uary

Palm

oil

With

pal

m o

il re

fere

nce

pric

es r

emai

ning

bel

ow t

he t

rigge

r le

vel o

f USD

750

per

ton

ne, I

ndon

esia

’s ex

port

tax

for c

rude

pal

m o

il was

kep

t at z

ero

in M

arch

201

6. T

he e

xpor

t tax

has

bee

n su

spen

ded

sinc

e O

ctob

er 2

014.

In M

alay

sia,

in M

arch

201

6, th

e pa

lm o

il ex

port

tax

was

kep

t at z

ero,

as

the

prod

uct’s

ca

lcul

ated

refe

renc

e pr

ice

rem

aine

d be

low

the

MYR

2 2

50 (U

SD 5

53) p

er to

nne

thre

shol

d th

at tr

igge

rs

taxa

tion.

135

TRAD

E PO

LIC

IES

– Ex

port

mea

sure

s -

tariff

& n

on-ta

riff

Indo

nesi

a/M

alay

sia

Mar

chPa

lm o

il W

ith p

alm

oil

refe

renc

e pr

ices

bel

ow th

e tri

gger

leve

l of U

SD 7

50 p

er to

nne,

Indo

nesi

a’s

expo

rt ta

x fo

r cr

ude

palm

oil

has

been

kep

t at z

ero

in A

pril

2016

. The

exp

ort t

ax h

as b

een

nil s

ince

Oct

ober

201

4.

Mal

aysi

a ha

s ra

ised

its

crud

e pa

lm o

il exp

ort t

ax fo

r Apr

il to

5 pe

rcen

t, pu

tting

an

end

to a

zer

o-ta

x sp

ell

that

com

men

ced

in M

ay 2

015.

The

rein

trodu

ctio

n of

the

tax

follo

ws

the

rece

nt re

cove

ry in

inte

rnat

iona

l pa

lm o

il pr

ices

. At M

YR 2

500

(USD

645

) per

tonn

e, th

e ca

lcul

ated

refe

renc

e pr

ice

has

exce

eded

the

trigg

er le

vel o

f MYR

2 2

50 (U

SD 5

80).

Und

er th

e sl

idin

g re

gim

e in

trodu

ced

in J

anua

ry 2

013,

the

expo

rt ta

x on

cru

de p

alm

oil

star

ts a

t 4.5

per

cent

and

can

incr

ease

up

to a

max

imum

of 8

.5 p

erce

nt. A

lthou

gh

the

rein

trodu

ctio

n of

the

tax

mig

ht d

ampe

n M

alay

sia’

s pa

lm o

il ex

ports

, the

resu

lting

rise

in d

omes

tic

avai

labi

litie

s co

uld

mak

e lo

cal p

alm

oil

refin

ing

mor

e pr

ofita

ble,

eve

ntua

lly b

oost

ing

expo

rts o

f refi

ned

palm

oils

(whi

ch a

re n

ot s

ubje

ct to

taxa

tion)

.

24 Oilcrops complex: Policy changes and industry measures - Annual compendium 2016

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

136

TRAD

E PO

LIC

IES

– Ex

port

mea

sure

s -

tariff

& n

on-ta

riff

Indo

nesi

a/M

alay

sia

May

Palm

oil

In M

ay 2

016,

Indo

nesi

a re

inst

ated

its

expo

rt ta

x on

pal

m o

il, w

hich

had

bee

n su

spen

ded

sinc

e O

ctob

er

2014

. Th

e re

intro

duct

ion

of t

he t

ax w

as t

rigge

red

by t

he r

ecen

t re

boun

d in

inte

rnat

iona

l pal

m o

il pr

ices

, as

Indo

nesi

a’s

esca

latin

g ta

x ki

cks

in w

hen

the

calc

ulat

ed re

fere

nce

pric

e of

pal

m o

il ex

ceed

s U

SD 7

50 p

er to

nne.

With

the

May

201

6 in

tern

atio

nal b

ench

mar

k pr

ice

repo

rted

at U

SD 7

54, a

n ex

port

tax

of U

SD 3

per

tonn

e be

cam

e du

e. F

or J

une

2016

, bas

ed o

n an

onl

y sl

ight

ly h

ighe

r ben

chm

ark

of

USD

752

, the

tax

will

rem

ain

unch

ange

d at

USD

3 p

er to

nne.

In th

e w

ake

of th

e co

ntin

ued

appr

ecia

tion

of in

tern

atio

nal p

alm

oil p

rices

, Mal

aysi

a w

ill ris

e its

slid

ing

expo

rt ta

x on

cru

de p

alm

oil t

o 5.

5 pe

rcen

t in

June

201

6. T

he ta

x ha

d be

en re

inst

ated

at 5

per

cent

in M

ay 2

016,

afte

r a 1

2-m

onth

sus

pens

ion

perio

d.

137

TRAD

E PO

LIC

IES

– Ex

port

mea

sure

s -

tariff

& n

on-ta

riff

Indo

nesi

a/M

alay

sia

June

Palm

oil

Indo

nesi

a an

d M

alay

sia

deci

ded

to s

et th

eir t

ax fo

r cru

de p

alm

oil e

xpor

ts a

t, re

spec

tivel

y, ze

ro U

SD p

er

tonn

e an

d 6

perc

ent p

er to

nne

durin

g Ju

ly 2

016.

In th

e pr

eced

ing

mon

th, t

he c

orre

spon

ding

rate

s w

ere

USD

3 p

er to

nne

in In

done

sia

and

5.5

perc

ent p

er to

nne

in M

alay

sia.

Inte

rest

ingl

y, w

hile

Indo

nesi

an

offici

als

expe

cted

the

benc

hmar

k pr

ice

for p

alm

oil

to fa

ll in

Jul

y (th

us tr

igge

ring

the

susp

ensi

on o

f the

co

untry

’s ex

port

tax)

, Mal

aysi

an a

utho

ritie

s an

ticip

ated

refe

renc

e pr

ices

to ri

se (p

rom

ptin

g an

upw

ard

adju

stm

ent i

n th

e ta

x).

138

TRAD

E PO

LIC

IES

– Ex

port

mea

sure

s -

tariff

& n

on-ta

riff

Indo

nesi

a/M

alay

sia

July

Palm

oil

In A

ugus

t 201

6, In

done

sia’

s ta

x on

cru

de p

alm

oil s

hipm

ents

will

rem

ain

at z

ero,

whi

le M

alay

sia’

s ta

x w

ill dr

op to

5 p

erce

nt (f

rom

6 p

erce

nt a

pplie

d in

Jul

y 20

16),

base

d on

a fa

ll in

the

calc

ulat

ed re

fere

nce

pric

e.

139

TRAD

E PO

LIC

IES

– Ex

port

mea

sure

s -

tariff

& n

on-ta

riff

Indo

nesi

a/M

alay

sia

Augu

stPa

lm o

il In

Sep

tem

ber 2

016,

Indo

nesi

a’s

tax

on c

rude

pal

m o

il sh

ipm

ents

will

rem

ain

at z

ero,

as

the

refe

renc

e pr

ice

has

rem

aine

d be

low

the

thre

shol

d le

vel o

f USD

750

per

tonn

e. M

alay

sia’

s pa

lm o

il ex

port

tax

will

rem

ain

unch

ange

d at

5 p

erce

nt (d

espi

te a

slig

ht d

rop

in th

e ca

lcul

ated

refe

renc

e pr

ice)

.

140

TRAD

E PO

LIC

IES

– Ex

port

mea

sure

s -

tariff

& n

on-ta

riff

Indo

nesi

a/M

alay

sia

Oct

ober

Palm

oil

Indo

nesi

a ra

ised

its

tax

on c

rude

pal

m o

il ex

ports

for O

ctob

er to

USD

3 p

er to

nne

(com

pare

d to

the

zero

USD

rate

in p

lace

sin

ce J

uly

2016

), bu

t low

ered

it a

gain

to z

ero

USD

for N

ovem

ber,

in li

ne w

ith

mov

emen

ts in

the

calc

ulat

ed re

fere

nce

pric

e. In

Mal

aysi

a, th

e ex

port

tax

was

rais

ed fr

om 5

per

cent

to

6.5

perc

ent f

or O

ctob

er, b

ut w

as le

ft un

chan

ged

for N

ovem

ber –

des

pite

a s

mal

l dro

p in

the

rele

vant

be

nchm

ark

pric

e. R

elat

ed to

this

mat

ter,

last

Sep

tem

ber,

Mal

aysi

an g

over

nmen

t offi

cial

s pr

opos

ed to

ha

rmon

ize th

e tw

o co

untri

es’ e

xpor

t tax

es, i

n a

bid

to re

duce

com

petit

ion

betw

een

the

wor

ld’s

two

lead

ing

supp

liers

for g

loba

l mar

ket s

hare

.

141

TRAD

E PO

LIC

IES

– Ex

port

mea

sure

s -

tariff

& n

on-ta

riff

Indo

nesi

a/M

alay

sia

Nov

embe

rPa

lm o

il In

Indo

nesi

a, th

e ex

port

tax

on c

rude

pal

m o

il (C

PO) r

emai

ns a

t zer

o U

SD in

Dec

embe

r 201

6, g

iven

that

th

e C

PO re

fere

nce

pric

e re

mai

ned

belo

w th

e U

SD 7

50 p

er to

nne

thre

shol

d le

vel,

abov

e w

hich

dut

ies

are

char

ged.

Mal

aysi

a ha

s lo

wer

ed it

s ex

port

tax

for D

ecem

ber t

o 6

perc

ent (

from

6.5

per

cent

in p

lace

in

Nov

embe

r), re

flect

ing

a dr

op in

the

rele

vant

ben

chm

ark

pric

e.

142

TRAD

E PO

LIC

IES

– Ex

port

mea

sure

s -

tariff

& n

on-ta

riff

Indo

nesi

a/M

alay

sia

Dece

mbe

rPa

lm o

il In

Jan

uary

201

7, In

done

sia

will

re-in

trodu

ce a

USD

3 p

er to

nne

expo

rt ta

x on

cru

de p

alm

oil s

hipm

ents

, gi

ven

that

the

gove

rnm

ent’s

ben

chm

ark p

rice

for p

alm

oil h

as e

xcee

ded

the

USD

750

per

tonn

e th

resh

old

that

trig

gers

the

slid

ing

expo

rt ta

x. T

he c

ount

ry’s

tax

had

been

set

at z

ero

in th

e tw

o pr

eced

ing

mon

ths.

M

alay

sia

rais

ed it

s ex

port

duty

for J

anua

ry to

7 p

erce

nt (c

ompa

red

to 6

per

cent

in D

ecem

ber),

in li

ne

with

the

incr

ease

reco

rded

in th

e re

leva

nt re

fere

nce

pric

e. T

he 7

per

cent

dut

y re

pres

ents

the

high

est r

ate

sinc

e th

e ta

x sy

stem

s’ re

visi

on in

Jan

uary

201

3. U

nder

Mal

aysi

a’s

mul

ti-tie

r tax

regi

me

the

duty

may

ra

nge

from

zer

o to

8.5

per

cent

.

Oilcrops complex: Policy changes and industry measures - Annual compendium 2016 25

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

143

TRAD

E PO

LIC

IES

– Ex

port

mea

sure

s -

tariff

& n

on-ta

riff

Mya

nmar

Augu

stEd

ible

oils

Acco

rdin

g to

loca

l pre

ss re

ports

, the

Gov

ernm

ent o

f Mya

nmar

dec

ided

to re

lax

expo

rt re

stric

tions

on

a nu

mbe

r of a

gri-b

ased

pro

duct

s, in

clud

ing

sesa

me

oil,

mus

tard

see

d/oi

l, su

nflow

er s

eed/

oil,

and

by-

prod

ucts

of e

dibl

e oi

l ext

ract

ion.

Rep

orte

dly,

the

mea

sure

was

take

n to

allo

w th

e do

mes

tic in

dust

ry to

ta

p ne

w e

xpor

t opp

ortu

nitie

s. M

eanw

hile

, the

gov

ernm

ent i

s sa

id to

be

wor

king

on

way

s to

ens

ure

that

do

mes

tic d

eman

d fo

r veg

etab

le o

il co

ntin

ues

to b

e m

et.

144

TRAD

E PO

LIC

IES

– Ex

port

mea

sure

s -

tariff

& n

on-ta

riff

Russ

ian

Fede

ratio

nAu

gust

Sunfl

ower

se

edTh

e G

over

nmen

t of t

he R

ussi

an F

eder

atio

n ha

s lo

wer

ed th

e co

untry

’s du

ty o

n su

nflow

erse

ed e

xpor

ts

outs

ide

the

Eura

sian

Eco

nom

ic U

nion

to 6

.5 p

erce

nt, b

ut n

ot le

ss th

an 9

.75

Euro

per

tonn

e. T

he n

ew

duty

has

com

e in

to e

ffect

on

1 Se

ptem

ber 2

016,

repl

acin

g th

e 9.

9 pe

rcen

t (bu

t not

less

than

14.

81 E

uro

per t

onne

) tar

iff in

pla

ce s

ince

Sep

tem

ber 2

015

(see

also

MPP

U S

ep.’1

5).

145

TRAD

E PO

LIC

IES

– Ex

port

mea

sure

s -

tariff

& n

on-ta

riff

Ukr

aine

May

Gra

ins,

oi

lsee

dsU

krai

nian

Gov

ernm

ent o

ffici

als

attri

bute

d th

e 10

–30

perc

ent r

ise

in in

tern

al p

urch

ase

pric

es o

f gra

ins

and

oils

eeds

sin

ce J

anua

ry 2

016

to th

e re

-inst

atem

ent,

at th

e st

art o

f the

yea

r, of

the

16.7

per

cent

VAT

re

fund

for e

xpor

ts o

f gra

in/o

ilsee

ds. R

epor

tedl

y, w

hen

ther

e w

as n

o VA

T re

fund

, exp

orte

rs tr

ansf

erre

d th

e fin

anci

al b

urde

n di

rect

ly to

pro

duce

rs b

y lo

wer

ing

inte

rnal

pur

chas

e pr

ices

.

146

TRAD

E PO

LIC

IES

– Ex

port

mea

sure

s -

tariff

& n

on-ta

riff

Uni

ted

Stat

esN

ovem

ber

Agric

ultu

ral

com

mod

ities

New

fund

ing

has

been

mad

e av

aila

ble

thro

ugh

USD

A’s

Mar

ket

Acce

ss P

rogr

am (M

AP) a

nd F

orei

gn

Mar

ket D

evel

opm

ent P

rogr

am (F

MD)

to a

ssis

t agr

icul

tura

l com

mod

ity o

rgan

izatio

ns in

thei

r effo

rts to

ex

pand

com

mer

cial

exp

orts

. With

rega

rd to

oils

eed

asso

ciat

ions

, the

Am

eric

an S

oybe

an A

ssoc

iatio

n,

the

Amer

ican

Pea

nut C

ounc

il, a

nd th

e N

atio

nal S

unflo

wer

Ass

ocia

tion

have

bee

n al

loca

ted

a to

tal o

f U

SD 8

.8 m

illion

tonn

es fo

r fisc

al y

ear 2

017,

whi

ch re

pres

ents

a 1

5 pe

rcen

t inc

reas

e ov

er F

Y 20

16.

147

TRAD

E PO

LIC

IES

–Tr

ade

disp

utes

Euro

pean

U

nion

/Ar

gent

ina

Mar

chBi

odie

sel

In M

arch

201

6, a

pan

el e

stab

lishe

d by

the

WTO

dis

pute

set

tlem

ent b

ody

(DSB

) circ

ulat

ed a

repo

rt on

th

e an

ti-du

mpi

ng m

easu

res

take

n by

the

Euro

pean

Uni

on a

gain

st b

iodi

esel

impo

rts fr

om A

rgen

tina.

The

Pa

nel, w

hich

was

set u

p at

the

requ

est o

f Arg

entin

a (s

ee M

PPU

May

’14)

, rul

ed in

favo

ur o

f sev

eral

cla

ims

mad

e by

the

com

plai

nant

. In

parti

cula

r, th

e fo

rmul

a us

ed b

y th

e Eu

rope

an C

omm

issi

on to

cal

cula

te th

e co

sts

of b

iodi

esel

pro

duct

ion

in A

rgen

tina

was

foun

d to

be

inco

nsis

tent

with

exi

stin

g W

TO re

gula

tions

an

d th

e du

ties

appl

ied

by th

e EU

con

side

red

to b

e in

exc

ess

of th

e m

argi

n of

dum

ping

that

sho

uld

have

be

en e

stab

lishe

d. T

he P

anel

ther

efor

e re

com

men

ded

the

EU to

brin

g th

e m

easu

res

into

con

form

ity w

ith

its o

blig

atio

ns. O

n th

e ot

her h

and,

the

pane

l rej

ecte

d so

me

of th

e cl

aim

s m

ade

by A

rgen

tina

and

also

re

cogn

ized

that

the

EU re

gula

tion

at th

e he

art o

f the

dis

pute

did

not

vio

late

WTO

rule

s. B

oth

parti

es

have

bee

n gi

ven

a pe

riod

of 6

0 da

ys to

app

eal t

he p

anel

’s fin

ding

s. A

sep

arat

e ca

se fi

led

by In

done

sia

conc

erni

ng a

nalo

gous

EU

dut

ies

on b

iodi

esel

impo

rts fr

om In

done

sia

is s

till b

eing

exa

min

ed b

y th

e DS

B (s

ee M

PPU

Dec

.’15)

. The

two

mai

n bi

odie

sel f

eeds

tock

con

cern

ed b

y th

e di

sput

es a

re s

oyoi

l (Arg

entin

a)

and

palm

oil (

Indo

nesi

a).

148

TRAD

E PO

LIC

IES

– Tr

ade

disp

utes

Euro

pean

U

nion

/Ar

gent

ina

June

Biod

iese

lTh

e EU

and

Arg

entin

a bo

th a

ppea

led

the

findi

ngs

of a

WTO

dis

pute

pan

el re

gard

ing

the

anti-

dum

ping

m

easu

res

take

n by

the

Euro

pean

Uni

on a

gain

st b

iodi

esel

impo

rts fr

om A

rgen

tina

(see

MPP

U A

pr.’1

6).

With

bot

h co

untri

es t

akin

g is

sues

with

spe

cific

asp

ects

of

the

rece

nt r

ulin

g, t

he c

ase

will

now

be

revi

ewed

by

the

WTO

’s Ap

pella

te B

ody,

whi

ch h

as 3

mon

ths

to is

sues

its

repo

rt. In

gen

eral

, the

Bod

y re

view

s le

gal i

nter

pret

atio

n m

atte

rs, r

athe

r tha

n th

e di

sput

e pa

nel’s

fact

ual fi

ndin

gs.

149

TRAD

E PO

LIC

IES

– Tr

ade

disp

utes

Euro

pean

U

nion

/ Ar

gent

ina/

Indo

nesi

a

Sept

embe

rBi

odie

sel

On

15 S

epte

mbe

r, in

a d

omes

tic p

roce

edin

g ba

sed

on c

ases

file

d by

indi

vidu

al A

rgen

tine

and

Indo

nesi

an

biod

iese

l pro

duce

rs, t

he E

U’s

Gen

eral

Cou

rt ru

led

that

the

anti-

dum

ping

dut

ies

impo

sed

on b

iodi

esel

im

ports

fro

m A

rgen

tina

and

Indo

nesi

a in

fring

ed b

asic

reg

ulat

ions

and

sho

uld

be a

nnul

led.

Sim

ilar

to a

rec

ent

WTO

rul

ing

(see

MPP

U A

pr.’1

6), t

he E

U ju

dges

fou

nd t

hat

the

Euro

pean

Com

mis

sion

’s ca

lcul

atio

ns o

f the

cos

ts o

f bio

dies

el p

rodu

ctio

n in

Arg

entin

a an

d In

done

sia

wer

e ba

sed

on in

corre

ct

cons

ider

atio

ns. T

he E

urop

ean

Com

mis

sion

and

the

EU’s

biod

iese

l ind

ustry

hav

e tw

o m

onth

s to

file

an

appe

al to

the

Euro

pean

Cou

rt of

Jus

tice.

26 Oilcrops complex: Policy changes and industry measures - Annual compendium 2016

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

150

TRAD

E PO

LIC

IES

– Tr

ade

disp

utes

Euro

pean

U

nion

/Ar

gent

ina

Oct

ober

Biod

iese

lTh

e W

TO A

ppel

late

Bod

y up

held

an

earli

er p

anel

’s m

ixed

rul

ing

rega

rdin

g th

e an

ti-du

mpi

ng d

utie

s im

pose

d by

the

EU o

n bi

odie

sel i

mpo

rts fr

om A

rgen

tina,

reco

mm

endi

ng to

brin

g th

e di

sput

ed tr

ade

mea

sure

into

con

form

ity w

ith W

TO r

ules

. The

pre

viou

s pa

nel h

ad fo

und

that

cer

tain

asp

ects

of t

he

EU’s

inve

stig

atio

n in

to A

rgen

tine

biod

iese

l pro

duct

ion

wer

e in

bre

ach

of W

TO ru

les

(see

MPP

U A

pr’1

6).

Follo

win

g th

e fo

rmal

ado

ptio

n of

the

Appe

llate

Bod

y’s re

port

on 2

6 O

ctob

er, t

he E

U h

as 3

0 da

ys to

in

form

the

WTO

how

it in

tend

s to

ach

ieve

com

plia

nce.

A s

epar

ate

case

file

d by

Indo

nesi

a co

ncer

ning

an

alog

ous

dutie

s ch

arge

d on

bio

dies

el im

ports

from

that

cou

ntry

is s

till u

nder

exa

min

atio

n at

the

WTO

(s

ee M

PPU

Dec

’15)

.

151

TRAD

E PO

LIC

IES

– Tr

ade

disp

utes

Euro

pean

U

nion

/ Ar

gent

ina/

Indo

nesi

a

Dece

mbe

rBi

odie

sel

In r

espo

nse

to a

rul

ing

issu

ed b

y th

e Di

sput

e Se

ttlem

ent

Body

of

the

Wor

ld T

rade

Org

aniza

tion

(see

MPP

U A

pr.&

Nov

.’16)

, the

Eur

opea

n C

omm

issi

on h

as in

itiat

ed a

n in

vest

igat

ion

of it

s an

ti-du

mpi

ng

dutie

s on

bio

dies

el im

porte

d fro

m A

rgen

tina

and

Indo

nesi

a. In

tere

sted

par

ties

– in

clud

ing

expo

rting

pr

oduc

ers

in th

e tw

o co

untri

es –

hav

e be

en in

vite

d to

sub

mit

new

evi

denc

e on

bio

dies

el p

rodu

ctio

n co

sts,

pro

duct

ion

capa

citie

s an

d ca

paci

ty u

tiliza

tion.

Aim

ed a

t brin

ging

the

EU’s

anti-

dum

ping

dut

ies

into

con

form

ity w

ith W

TO r

ules

, the

rev

iew

may

lead

to

a re

peal

or

amen

dmen

t of

the

mea

sure

s in

pl

ace.

Any

cha

nges

will

not h

ave

retro

activ

e eff

ect,

impl

ying

that

they

sha

ll no

t ser

ve a

s a

basi

s fo

r th

e re

imbu

rsem

ent o

f dut

ies

colle

cted

in th

e pa

st. T

he C

omm

issi

on n

otifi

ed th

e W

TO th

at it

pla

ns to

im

plem

ent i

ts re

visi

ons

by 1

0 Au

gust

201

7.

152

TRAD

E PO

LIC

IES

– Tr

ade

disp

utes

Peru

Febr

uary

Biod

iese

lTh

e G

over

nmen

t of P

eru

impo

sed

anti-

dum

ping

tariff

s of

up

to U

SD 2

08 p

er to

nne

on im

ports

of p

ure

biod

iese

l fro

m in

divi

dual

Arg

entin

e co

mpa

nies

. The

dec

isio

n co

mes

9 m

onth

s af

ter P

eru’

s co

mpe

titio

n re

gula

tor

bega

n in

vest

igat

ing

the

poss

ible

dum

ping

of A

rgen

tine

biod

iese

l int

o th

e Pe

ruvi

an m

arke

t (s

ee M

PPU

Aug

.’15)

. Arg

entin

a is

Per

u’s

prin

cipa

l sup

plie

r of t

he p

rodu

ct. A

rgen

tine

biod

iese

l pro

duce

rs

said

they

wou

ld a

ppea

l Per

u’s

deci

sion

.

153

TRAD

E PO

LIC

IES

– Tr

ade

disp

utes

Peru

Oct

ober

Biod

iese

lTh

e Pe

ruvi

an G

over

nmen

t has

ann

ounc

ed th

e re

plac

emen

t of p

rovi

sion

al a

nti-d

umpi

ng d

utie

s im

pose

d la

st F

ebru

ary

on b

iodi

esel

impo

rts fr

om A

rgen

tina

(see

MPP

U M

ar’1

6) w

ith p

erm

anen

t one

s. T

he d

utie

s,

whi

ch a

re s

et to

rem

ain

in p

lace

for fi

ve y

ears

, will

be c

harg

ed a

t var

iabl

e ra

tes

(rang

ing

from

USD

122

to

USD

192

per

tonn

e), d

epen

ding

on

the

biod

iese

l man

ufac

ture

r in

Arge

ntin

a. T

he m

easu

re is

mea

nt to

sh

ield

bio

dies

el p

rodu

ctio

n in

Per

u fro

m a

llege

dly

unfa

ir co

mpe

titio

n by

Arg

entin

e pr

oduc

ers.

Arg

entin

a is

the

mai

n su

pplie

r of b

iodi

esel

to P

eru,

whe

re c

onsu

mpt

ion

of B

5 bl

ends

(i.e

. tra

nspo

rtatio

n di

esel

co

ntai

ning

5 p

erce

nt o

f bio

dies

el) b

ecam

e m

anda

tory

in 2

011.

154

TRAD

E PO

LIC

IES

– Tr

ade

disp

utes

Russ

ian

Fede

ratio

n/Eu

rope

an U

nion

Augu

stPa

lm o

ilA

WTO

dis

pute

set

tlem

ent p

anel

set

up

at th

e re

ques

t of t

he E

urop

ean

Uni

on ru

led

that

impo

rt du

ties

appl

ied

by t

he R

ussi

an F

eder

atio

n on

sel

ecte

d pr

oduc

ts im

porte

d fro

m t

he E

U –

incl

udin

g pa

lm o

il an

d its

frac

tions

– v

iola

ted

WTO

rule

s (s

ee a

lso M

PPU

Dec

.’14)

. Rep

orte

dly,

the

com

bine

d du

ty ra

tes

appl

ied

to p

alm

oil

in 2

014

– i.e

. 3 p

erce

nt, b

ut n

ot le

ss th

an 9

0 Eu

ro p

er to

nne

– w

ere

in e

xces

s of

the

ad v

alor

em b

ound

rate

the

Russ

ian

Fede

ratio

n ha

d ac

cept

ed u

pon

join

ing

the

WTO

in 2

012.

Rep

orte

dly,

the

Russ

ian

Fede

ratio

n ha

s ag

reed

to lo

wer

the

com

bine

d du

ty to

its

boun

d ra

te b

y M

ay 2

017.

155

TRAD

E PO

LIC

IES

– Tr

ade

agre

emen

tsC

anad

a/Eu

rope

an U

nion

Oct

ober

Rape

seed

oil

On

30 O

ctob

er,

the

EU a

nd C

anad

a fo

rmal

ly s

igne

d th

e bi

late

ral

Com

preh

ensi

ve E

cono

mic

and

Tr

ade

Agre

emen

t (C

ETA)

, whi

ch o

pens

the

way

for t

he a

ccor

d’s

prov

isio

nal a

pplic

atio

n an

d fo

r for

mal

ra

tifica

tions

by

natio

nal p

arlia

men

ts. F

or o

ilsee

ds, a

key

ele

men

t of C

ETA

is th

e el

imin

atio

n (im

med

iate

ly

upon

impl

emen

tatio

n) o

f tar

iffs

on C

anad

ian

rape

seed

oil

ente

ring

the

EU –

a m

easu

re th

at, a

ccor

ding

to

the

Can

ola

Cou

ncil

of C

anad

a, w

ill al

low

Can

adia

n ex

porte

rs to

rais

e th

eir s

ales

to th

e EU

by

up to

U

SD 9

0 m

illion

per

yea

r (se

e al

so M

PPU

Nov

’13

& N

ov’1

4). P

rovi

sion

al im

plem

enta

tion

of th

e tra

de p

act

is e

xpec

ted

for n

ext y

ear.

Oilcrops complex: Policy changes and industry measures - Annual compendium 2016 27

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

156

TRAD

E PO

LIC

IES

– Tr

ade

agre

emen

tsEu

rope

an

Uni

on/T

unis

ia

Janu

ary

Oliv

e oi

l Th

e Eu

rope

an C

omm

issi

on’s

prop

osal

to ra

ise

Tuni

sia’

s du

ty-fr

ee ta

riff ra

te q

uota

for o

live

oil f

or tw

o ye

ars

has

been

bac

ked

by t

he E

urop

ean

Parli

amen

t’s t

rade

com

mitt

ee, p

rovi

ded

an a

sses

smen

t is

co

nduc

ted

afte

r th

e fir

st y

ear

to a

scer

tain

the

mea

sure

’s im

pact

on

the

EU o

live

oil m

arke

t an

d to

co

nsid

er c

orre

ctiv

e m

easu

res

if ne

cess

ary.

Shou

ld th

e pr

opos

al b

e ad

opte

d by

the

Parli

amen

t ple

nary

, it

will

be tr

ansm

itted

to th

e Eu

rope

an C

ounc

il fo

r fina

l rev

iew

(see

also

MPP

U O

ct.&

Nov

.’15)

.

157

TRAD

E PO

LIC

IES

– Tr

ade

agre

emen

tsEu

rope

an

Uni

on/T

unis

ia

Febr

uary

Oliv

e oi

l Th

e Eu

rope

an P

arlia

men

t bac

ked

the

prop

osal

to ra

ise

Tuni

sia’

s du

ty-fr

ee ta

riff ra

te q

uota

for o

live

oil

for t

wo

year

s (s

ee M

PPU

Feb

.’16)

. How

ever

, it a

dded

(i) p

rovi

sion

s fo

r con

duct

ing

an a

sses

smen

t of t

he

mea

sure

’s im

pact

on

the

EU o

live

oil m

arke

t afte

r one

yea

r, an

d (ii)

trac

king

obl

igat

ions

to e

nsur

e th

at

the

oliv

e oi

l im

porte

d un

der t

he q

uota

is a

ctua

lly p

rodu

ced

in a

nd s

hipp

ed d

irect

ly fr

om T

unis

ia. T

he

prop

osal

will

now

be

trans

mitt

ed to

the

Euro

pean

Cou

ncil

for i

ts fi

nal r

evie

w.

158

TRAD

E PO

LIC

IES

– Tr

ade

agre

emen

tsG

hana

/Lib

eria

Dece

mbe

rPa

lm o

il Th

e G

over

nmen

ts o

f Li

beria

and

Gha

na, w

ith s

uppo

rt fro

m t

heir

priv

ate

sect

ors,

agr

eed

to e

xplo

re

pote

ntia

l tra

de o

ppor

tuni

ties

in p

alm

oil.

Nat

iona

l tra

de a

nd s

tand

ard

setti

ng b

odie

s an

d pr

ivat

e in

vest

ors

in th

e tw

o co

untri

es c

omm

itted

to jo

in fo

rces

to p

rom

ote

Libe

rian

expo

rts o

f cru

de p

alm

oil f

or

subs

eque

nt re

finem

ent i

n G

hana

.

159

TRAD

E PO

LIC

IES

– Tr

ade

agre

emen

tsIn

done

sia/

Euro

pean

Uni

onFe

brua

ryPa

lm o

il Ac

cord

ing

to g

over

nmen

t offi

cial

s, In

done

sia

is c

omm

itted

to s

peed

up

nego

tiatio

ns o

n th

e In

done

sia–

Euro

pean

Uni

on C

ompr

ehen

sive

Eco

nom

ic P

artn

ersh

ip A

gree

men

t (C

EPA)

, so

as to

hav

e an

agr

eem

ent

in p

lace

with

in t

wo

year

s. W

ith r

egar

d to

mar

ket

acce

ss,

redu

ctio

ns in

the

EU

’s im

port

tariff

s on

In

done

sian

pal

m o

il an

d co

coa

prod

ucts

, whi

ch c

urre

ntly

rang

e be

twee

n 8

and

12 p

erce

nt, a

re to

be

purs

ued

by In

done

sia.

The

EU

(tog

ethe

r with

Chi

na) i

s In

done

sia’

s m

ost p

rom

inen

t mar

ket f

or p

alm

oil

afte

r Ind

ia.

160

TRAD

E PO

LIC

IES

– Tr

ade

agre

emen

tsIn

done

sia/

Mal

aysi

aDe

cem

ber

Palm

oil

The

wor

ld’s

two

lead

ing

palm

oil

expo

rting

nat

ions

agr

eed

to o

rgan

ize jo

int

min

iste

rial m

issi

ons

to

wes

tern

, im

porti

ng c

ount

ries

to a

ddre

ss p

erce

ived

bar

riers

to p

alm

oil

trade

. Acc

ordi

ng to

Mal

aysi

an

and

Indo

nesi

an g

over

nmen

t offi

cial

s, a

nti-p

alm

oil

cam

paig

ns a

re h

urtin

g gl

obal

exp

orts

and

hav

e ne

gativ

ely

affec

ted

grow

th o

f the

ir do

mes

tic p

alm

oil

indu

strie

s. T

he b

ilate

ral e

ffort

will

be c

arrie

d ou

t un

der t

he C

ounc

il of

Pal

m O

il Pr

oduc

ing

Cou

ntrie

s th

at w

as e

stab

lishe

d in

201

5 (s

ee M

PPU

Nov

.’15)

.

161

TRAD

E PO

LIC

IES

– Tr

ade

agre

emen

tsM

alay

sia/

Iran

(Isla

mic

Re

publ

ic o

f)

Dece

mbe

rPa

lm o

il M

alay

sia

plan

s to

pur

sue

a fre

e tra

de a

gree

men

t with

the

Isla

mic

Rep

ublic

of I

ran

as p

art o

f effo

rts to

di

vers

ify b

ilate

ral t

rade

. Fol

low

ing

the

liftin

g of

inte

rnat

iona

l san

ctio

ns a

gain

st th

e Is

lam

ic R

epub

lic o

f Ira

n an

d gi

ven

the

coun

try’s

thriv

ing

econ

omy,

Mal

aysi

a se

es s

igni

fican

t pot

entia

l for

trad

e be

twee

n th

e tw

o co

untri

es, e

spec

ially

rega

rdin

g m

iner

al o

il, g

as a

nd p

alm

oil.

Con

side

ring

that

impo

rts o

f pal

m

oil i

nto

the

Isla

mic

Rep

ublic

of I

ran

curre

ntly

attr

act a

hig

h ta

riff o

f 40

perc

ent,

Mal

aysi

a is

aim

ing

for a

pr

efer

entia

l, lo

wer

dut

y un

der a

bila

tera

l tra

de a

gree

men

t.

162

TRAD

E PO

LIC

IES

– Tr

ade

agre

emen

tsU

krai

ne/

Can

ada

July

Agric

ultu

ral

com

mod

ities

In J

uly 2

016,

neg

otia

tions

of a

free

trad

e ag

reem

ent b

etw

een

Ukr

aine

and

Can

ada

have

bee

n co

mpl

eted

. Th

e ne

w a

gree

men

t will

take

effe

ct a

fter i

ts ra

tifica

tion

by th

e pa

rliam

ents

of b

oth

coun

tries

. Und

er th

e tra

de p

act,

impo

rt du

ties

on a

ll ag

ricul

tura

l goo

ds a

re s

et t

o be

lifte

d in

one

go

– ex

cept

for

som

e C

anad

ian

tariff

line

s co

ncer

ning

sel

ecte

d ‘s

ensi

tive’

item

s, in

clud

ing

prod

ucts

der

ived

from

veg

etab

le

oil,

such

as

mar

garin

e. H

owev

er, c

onsi

derin

g th

at C

anad

a’s

dutie

s on

oils

eeds

, oils

and

mea

ls a

re

earm

arke

d fo

r im

med

iate

elim

inat

ion,

Ukr

aine

’s ex

ports

of

sunfl

ower

oil,

rap

esee

d an

d so

ybea

ns

prod

ucts

will

enjo

y in

stan

t dut

y-fre

e ac

cess

to th

e C

anad

ian

mar

ket.

163

TRAD

E PO

LIC

IES

– Tr

ade

agre

emen

tsU

krai

ne/

Indo

nesi

aAu

gust

Agric

ultu

ral

com

mod

ities

In A

ugus

t 201

6, th

e U

krai

ne a

nd In

done

sia

agre

ed to

sta

rt co

nsul

tatio

ns o

n es

tabl

ishi

ng a

free

trad

e zo

ne b

etw

een

the

two

coun

tries

. With

reg

ard

to a

gric

ultu

ral p

rodu

cts,

Ukr

aine

hop

es t

o ex

pand

its

expo

rts o

f sun

flow

er s

eed/

oil t

o In

done

sia,

whe

re d

eman

d fo

r com

mod

ities

from

the

oil a

nd fa

t com

plex

is

risi

ng s

tead

ily.

28 Oilcrops complex: Policy changes and industry measures - Annual compendium 2016

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

164

FOO

D ST

ANDA

RDS

& FO

OD

SAFE

TY

POLI

CIE

S

Can

ada

June

Tran

s fa

tAs

par

t of c

omm

itmen

ts to

elim

inat

e in

dust

rially

pro

duce

d tra

ns fa

ts in

pro

cess

ed fo

ods,

the

Gov

ernm

ent

of C

anad

a as

ked

indu

stry

sta

keho

lder

s to

pro

vide

dat

a on

the

amou

nt o

f par

tially

hyd

roge

nate

d oi

ls

(the

prim

ary

sour

ce o

f ind

ustri

ally

gen

erat

ed tr

ans

fats

) pre

sent

in d

omes

tic o

r im

porte

d fo

ods,

as

wel

l as

on

the

reas

ons

for t

heir

use

and

thei

r con

cent

ratio

ns. D

espi

te lo

ng-s

tand

ing

effor

ts to

redu

ce th

e pr

esen

ce o

f tra

ns f

ats

in t

he d

omes

tic f

ood

chai

n (s

ee M

PPU

Sep

.’11)

, stu

dies

rev

eale

d th

at t

rans

fa

t con

cent

ratio

ns re

mai

ned

abov

e se

t tar

gets

in a

num

ber o

f foo

ds, p

uttin

g at

risk

cer

tain

gro

ups

of

cons

umer

s –

give

n st

rong

evi

denc

e lin

king

tran

s fa

t int

ake

to c

oron

ary

hear

t dis

ease

s. L

ast y

ear,

in th

e U

nite

d St

ates

, foo

d m

anuf

actu

rers

hav

e be

en o

rder

ed to

rem

ove

trans

fats

from

thei

r pro

duct

s w

ithin

th

ree

year

s (s

ee M

PPU

Jul

y’15

).

165

FOO

D ST

ANDA

RDS

& FO

OD

SAFE

TY

POLI

CIE

S

Can

ada

Nov

embe

rSa

tura

ted

fat

Can

ada’

s he

alth

aut

horit

ies

open

ed c

onsu

ltatio

ns o

n pr

opos

ed c

hang

es to

fron

t-of-p

acka

ge la

bellin

g fo

r foo

ds h

igh

in n

utrie

nts

that

are

a p

ublic

hea

lth c

once

rn, n

amel

y su

gars

, sod

ium

and

sat

urat

ed fa

t. U

nder

the

prop

osal

, foo

d co

mpa

nies

wou

ld h

ave

to c

hang

e fo

od la

bels

to m

ake

info

rmat

ion

on c

onte

nt

in c

once

rned

nut

rient

s m

ore

visi

ble

and

easi

er to

und

erst

and.

The

use

of h

ealth

cla

ims

wou

ld a

lso

be

regu

late

d un

der t

he n

ew p

ropo

sal.

166

FOO

D ST

ANDA

RDS

& FO

OD

SAFE

TY

POLI

CIE

S

Can

ada

Nov

embe

rTr

ans

fat

To p

rote

ct c

onsu

mer

s’ h

ealth

, Can

ada’

s H

ealth

Min

istry

is p

ropo

sing

to b

an in

dust

rial t

rans

fats

(whi

ch

are

gene

rate

d w

hen

vege

tabl

e oi

ls a

re p

artia

lly h

ydro

gena

ted

for i

mpr

oved

sta

bilit

y) in

food

s so

ld in

th

e co

untry

and

has

cal

led

for c

omm

ents

by

stak

ehol

ders

. Und

er th

e pr

opos

al, f

ood

com

pani

es w

ould

be

gra

nted

a 1

2-m

onth

impl

emen

tatio

n pe

riod

to d

ispo

se o

f exi

stin

g st

ocks

and

mak

e th

e ne

cess

ary

chan

ges

in fo

od fo

rmul

atio

ns. P

ast g

over

nmen

t effo

rts to

redu

ce th

e pr

esen

ce o

f tra

ns fa

ts in

food

s di

d no

t yie

ld th

e ho

ped-

for r

esul

ts (s

ee M

PPU

Sep

.’11

& Ju

ly’16

con

cern

ing

Can

ada,

as

wel

l as

MPP

U

Jun’

13 o

n a

glob

al s

tudy

rega

rdin

g th

e eff

ectiv

enes

s of

pol

icie

s to

regu

late

tran

s fa

ts).

167

FOO

D ST

ANDA

RDS

& FO

OD

SAFE

TY

POLI

CIE

S

Chi

leM

aySa

tura

ted

fat

Legi

slat

ion

regu

latin

g th

e la

bellin

g of

the

nut

ritio

nal c

ompo

sitio

n of

food

pro

duct

s –

spec

ifica

lly t

he

cont

ent o

f sat

urat

ed fa

t, so

dium

, sug

ar a

nd e

nerg

y –

is s

et to

com

e in

to e

ffect

in C

hile

on

26 J

une

2016

. Fo

r sat

urat

ed fa

ts, t

he th

resh

old

trigg

erin

g ob

ligat

ory

war

ning

s on

labe

ls is

4 g

ram

s pe

r 100

gra

ms

for

solid

food

s, a

nd 3

gra

ms

per 1

00 m

l for

liqu

id p

rodu

cts.

The

legi

slat

ion

incl

udes

add

ition

al m

arke

ting

rest

rictio

ns fo

r pro

duct

s th

at a

re in

tend

ed fo

r con

sum

ptio

n by

chi

ldre

n.

168

FOO

D ST

ANDA

RDS

& FO

OD

SAFE

TY

POLI

CIE

S

Euro

pean

Uni

on

Janu

ary

Tran

s fa

tTh

e Eu

rope

an C

omm

issi

on h

as is

sued

a re

port

on tr

ans

fatty

aci

d (T

FA) i

n fo

od a

nd in

the

over

all d

iet

of E

urop

eans

. Par

tially

hyd

roge

nate

d oi

ls a

re th

e pr

imar

y di

etar

y so

urce

of i

ndus

trial

TFA

(as

oppo

sed

to T

FA n

atur

ally

pre

sent

in fo

od p

rodu

cts

mad

e fro

m ru

min

ant a

nim

als)

. Whi

le th

e re

port

ackn

owle

dges

th

at o

ver t

he la

st te

n ye

ars

TFA

leve

ls h

ave

decr

ease

d in

the

maj

ority

of f

ood

prod

ucts

in m

any

mem

ber

stat

es, i

t als

o hi

ghlig

hts

the

need

to a

ddre

ss re

mai

ning

hot

spot

s in

som

e fo

od p

rodu

cts

and

popu

latio

n gr

oups

. Set

ting

an E

U-w

ide

lega

l lim

it fo

r ind

ustri

al T

FA c

onte

nt is

see

n as

the

mos

t effe

ctiv

e m

easu

re

to fo

ster

pub

lic h

ealth

and

con

sum

er p

rote

ctio

n w

hile

gua

rant

eein

g th

e co

mpa

tibilit

y w

ith E

U s

ingl

e m

arke

t rul

es a

nd li

miti

ng th

e bu

rden

on

food

pro

duce

rs. A

ltern

ativ

es m

easu

res

cons

ider

ed in

clud

ed:

(i) m

anda

tory

TFA

con

tent

dec

lara

tion,

whi

ch w

as n

ot re

com

men

ded

on th

e gr

ound

that

it is

not

wel

l un

ders

tood

by

cons

umer

s; a

nd (i

i) vo

lunt

ary

indu

stry

agr

eem

ent t

owar

ds re

duci

ng T

FA in

food

s an

d di

ets,

whi

ch w

as d

eem

ed to

be

ineff

ectiv

e. T

he C

omm

issi

on a

nnou

nced

that

it w

ill so

on la

unch

a p

ublic

co

nsul

tatio

n to

col

lect

mor

e in

form

atio

n an

d ca

rry o

ut a

full i

mpa

ct a

sses

smen

t, w

ith a

vie

w to

faci

litat

e fu

ture

pol

icy

deci

sion

s. F

EDIO

L, th

e fe

dera

tion

repr

esen

ting

Euro

pe’s

vege

tabl

e oi

l ind

ustry

, wel

com

ed

the

repo

rt, a

ddin

g th

at a

2 p

erce

nt T

FA li

mit

wou

ld b

oth

addr

ess

heal

th c

once

rns

and

ensu

re a

leve

l pl

ayin

g fie

ld a

cros

s th

e EU

(see

also

MPP

U M

ay’1

4).

Oilcrops complex: Policy changes and industry measures - Annual compendium 2016 29

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

169

FOO

D ST

ANDA

RDS

& FO

OD

SAFE

TY

POLI

CIE

S

Euro

pean

Uni

on

June

Edib

le o

ilsTh

e Eu

rope

an F

ood

Safe

ty A

utho

rity

issu

ed a

war

ning

con

cern

ing

thre

e to

xic

subs

tanc

es in

veg

etab

le

oil

deriv

ativ

es.

The

glyc

erol

-bas

ed c

onta

min

ants

for

m d

urin

g fo

od p

roce

ssin

g, i

n pa

rticu

lar,

whe

n ve

geta

ble

oils

are

refi

ned

at h

igh

tem

pera

ture

s. T

he d

isco

very

rai

ses

pote

ntia

l hea

lth c

once

rns

for

aver

age

cons

umer

s (o

f veg

etab

le o

ils, m

arga

rines

and

pro

cess

ed fo

ods

such

as

past

ries

and

cake

s) in

al

l you

ng a

ge g

roup

s, a

nd fo

r hig

h co

nsum

ers

in a

ll ag

e gr

oups

, inf

orm

ed th

e ag

ency

. EU

food

saf

ety

regu

lato

rs h

ave

been

invi

ted

to u

se E

FSA’

s sc

ient

ific

advi

ce to

con

side

r how

to m

anag

e th

e po

tent

ial

risks

for c

onsu

mer

s fro

m e

xpos

ure

to th

ese

subs

tanc

es in

food

.

170

FOO

D ST

ANDA

RDS

& FO

OD

SAFE

TY

POLI

CIE

S

Euro

pean

Uni

on

Nov

embe

rRa

pese

edTh

e Eu

rope

an F

ood

Safe

ty A

utho

rity

(EFS

A) d

eliv

ered

a s

cien

tific

opin

ion

on a

nim

al/h

uman

hea

lth ri

sks

rela

ted

to th

e pr

esen

ce o

f eru

cic

acid

(EA)

in fe

ed a

nd fo

od. E

A oc

curs

nat

ural

ly, to

geth

er w

ith o

ther

fa

tty a

cids

, in

the

oil a

nd m

eal o

f rap

esee

d an

d m

usta

rdse

ed. W

hile

nat

ural

form

s of

thes

e oi

lsee

ds

cont

ain

high

leve

ls o

f EA,

leve

ls in

var

ietie

s cu

ltiva

ted

for f

ood

use

are

typi

cally

bel

ow 0

.5 p

erce

nt. I

n th

e Eu

rope

an U

nion

, max

imum

lim

its fo

r EA

as a

con

tam

inan

t in

vege

tabl

e oi

l/fat

and

food

pro

duct

s ar

e in

pl

ace

sinc

e 19

76. E

FSA’

s st

udy

anal

yzes

how

indi

vidu

al fo

od g

roup

s co

ntrib

ute

to th

e pr

esen

ce o

f EA

in h

uman

die

ts, i

dent

ifies

the

targ

et o

rgan

s fo

r tox

ic e

ffect

s af

ter p

rolo

nged

exp

osur

e, a

nd e

stab

lishe

s to

lera

ble

daily

inta

ke le

vels

. The

age

ncy

reck

ons

that

EA

is n

ot a

saf

ety

conc

ern

for

mos

t hu

man

s,

alth

ough

it m

ay p

ose

som

e lo

ng-te

rm h

ealth

risk

s fo

r chi

ldre

n. W

ith re

gard

to a

nim

als,

the

leve

ls o

f EA

pres

ent i

n an

imal

feed

may

pos

e he

alth

risk

s fo

r chi

cken

, acc

ordi

ng to

EFS

A.

171

FOO

D ST

ANDA

RDS

& FO

OD

SAFE

TY

POLI

CIE

S

Gha

naJa

nuar

yPa

lm o

il Af

ter c

autio

ning

the

publ

ic o

n pa

lm o

il adu

ltera

tion

in O

ctob

er 2

015

(see

MPP

U D

ec.’1

5), G

hana

’s Fo

od

and

Drug

s Au

thor

ity n

ow d

ecla

red

the

oil s

afe

for c

onsu

mpt

ion

but a

dvis

ed c

onsu

mer

s to

onl

y bu

y pa

lm

oil f

rom

sel

lers

with

acc

redi

ted

badg

es is

sued

by

the

Auth

ority

. Rep

orte

dly,

the

agen

cy h

as re

gist

ered

fiv

e hu

ndre

d se

llers

of p

alm

oil

in G

reat

er A

ccra

that

com

ply

with

its

anti-

adul

tera

tion

dire

ctiv

es. T

he

regi

stra

tion

proc

ess,

whi

ch w

ill be

ext

ende

d to

oth

er re

gion

s, is

exp

ecte

d to

faci

litat

e tra

ceab

ility

of a

ny

adul

tera

ted

oil f

ound

in th

e m

arke

t.

172

FOO

D ST

ANDA

RDS

& FO

OD

SAFE

TY

POLI

CIE

S

Gha

naAu

gust

Edib

le o

ilsIn

Gha

na, f

ood

auth

oriti

es re

porte

d in

stan

ces

whe

re b

ottle

rs o

f edi

ble

oil h

ave

mar

kete

d lo

w-v

alue

oils

as

oliv

e oi

l to

reap

a p

rem

ium

. Dec

eptiv

e m

arke

ting

prac

tices

hav

e al

so b

een

repo

rted

in F

ranc

e, w

here

Sp

anis

h ol

ives

hav

e be

en im

porte

d an

d th

eir o

il ble

nded

with

nat

ive

prod

uce

for s

ale

unde

r loc

al la

bels

, co

ncea

ling

the

prod

ucts

geo

grap

hic

orig

in.

173

FOO

D ST

ANDA

RDS

& FO

OD

SAFE

TY

POLI

CIE

S

Indi

aM

ayC

ocon

ut o

ilIn

line

with

ear

lier e

fforts

to c

urb

adul

tera

tion

of c

ocon

ut o

il, in

Mar

ch 2

016,

the

food

saf

ety

auth

oriti

es o

f Ke

rala

sta

te (I

ndia

) intro

duce

d a

requ

irem

ent c

allin

g fo

r man

dato

ry re

gist

ratio

n of

new

bra

nds

with

in o

ne

mon

th o

f the

ir co

mm

erci

aliza

tion,

failin

g w

hich

mar

ketin

g of

suc

h oi

ls w

ould

be

bann

ed (s

ee a

lso M

PPU

M

ay’1

5). T

he m

easu

re is

mea

nt t

o pr

even

t pr

evio

usly

ban

ned

prod

uce

from

re-

ente

ring

the

mar

ket.

Repo

rtedl

y, th

e ne

w p

olic

y ha

s le

d to

ban

s on

the

prod

uctio

n an

d co

mm

erci

aliza

tion

of 1

4 br

ands

of

coco

nut o

il th

at w

ere

foun

d to

be

adul

tera

ted.

174

FOO

D ST

ANDA

RDS

& FO

OD

SAFE

TY

POLI

CIE

S

Indi

aJu

neO

ils a

nd fa

tsTh

e Fo

od S

afet

y and

Sta

ndar

ds A

utho

rity o

f Ind

ia (F

SSAI

) issu

es n

ew m

anua

ls o

n te

stin

g m

etho

dolo

gies

an

d an

alys

es fo

r var

ious

food

pro

duct

s, in

clud

ing

oils

and

fats

. The

revi

sed

stan

dard

s m

ust b

e ap

plie

d by

all

food

saf

ety

labo

rato

ries

from

Jun

e 20

16 o

nwar

d.

175

FOO

D ST

ANDA

RDS

& FO

OD

SAFE

TY

POLI

CIE

S

Indi

aAu

gust

Tran

s fa

tTh

e G

over

nmen

t of

Ind

ia p

ostp

oned

the

enf

orce

men

t da

te f

or m

axim

um li

mits

of

trans

fat

ty a

cid

leve

ls in

fats

, oils

and

fat

emul

sion

s (s

ee M

PPU

Sep

.’15)

by

six

mon

ths

– fro

m 2

7 Au

gust

201

6 to

27

Feb

ruar

y 20

17.

30 Oilcrops complex: Policy changes and industry measures - Annual compendium 2016

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

176

FOO

D ST

ANDA

RDS

& FO

OD

SAFE

TY

POLI

CIE

S

Italy

May

Oliv

e oi

l In

an

effor

t to

com

ply

with

EU

law,

Ital

y’s la

wm

aker

s ar

e co

nsid

erin

g to

abo

lish

a re

gula

tion

that

requ

ired

a ‘m

inim

um e

xpiry

dat

e’ fo

r oliv

e oi

l of n

o m

ore

than

18

mon

ths

from

the

date

of b

ottli

ng. T

he re

gula

tion

had

been

intro

duce

d in

201

3 be

caus

e, w

ith a

ge, o

live

oil b

egin

s to

gra

dual

ly lo

se th

e or

gano

lept

ic tr

aits

th

at d

eter

min

e th

e oi

l’s n

utrit

iona

l and

hea

lth p

rope

rties

. How

ever

, suc

h pr

ovis

ion

was

fou

nd t

o be

in

cons

iste

nt w

ith E

U la

w s

tatin

g th

at it

is u

p to

food

man

ufac

ture

rs to

ass

ess

the

date

unt

il w

hich

thei

r pr

oduc

ts re

tain

s th

eir s

peci

fic p

rope

rties

, if p

rope

rly s

tore

d. It

aly’s

farm

ers

asso

ciat

ions

war

ned

that

the

elim

inat

ion

of th

e la

bellin

g re

quire

men

t wou

ld p

ut c

omm

erci

al in

tere

sts

abov

e co

nsum

ers’

inte

rest

s. If

ap

prov

ed, t

he m

easu

re c

ould

als

o en

cour

age

selle

rs to

put

old

oliv

e oi

l sto

cks

on th

e m

arke

t for

sal

e.

177

FOO

D ST

ANDA

RDS

& FO

OD

SAFE

TY

POLI

CIE

S

Russ

ian

Fede

ratio

nJu

lyPa

lm o

ilTh

e G

over

nmen

t of t

he R

ussi

an F

eder

atio

n dr

oppe

d its

ear

lier p

lans

to in

trodu

ce n

ew s

afet

y st

anda

rds

for

tropi

cal o

ils, n

otab

ly p

alm

oil,

citi

ng a

lack

of s

cien

tific

evid

ence

for

alle

ged

haza

rds

of p

alm

oil

cons

umpt

ion

to h

uman

hea

lth. P

revi

ousl

y, th

e go

vern

men

t had

con

side

red

regu

latin

g th

e us

e of

pal

m

oil i

n fo

od p

rodu

ctio

n an

d in

trodu

cing

stri

ngen

t req

uire

men

ts re

gard

ing

the

max

imum

allo

wed

con

tent

of

hyd

roge

n pe

roxi

de in

trop

ical

oils

(see

MPP

U N

ov.’1

4 &

Aug.

’15)

.

178

FOO

D ST

ANDA

RDS

& FO

OD

SAFE

TY

POLI

CIE

S

Uni

ted

Stat

esFe

brua

ryH

erbi

cide

sTh

e U

S Fo

od a

nd D

rug

Adm

inis

tratio

n (F

DA) i

s co

nsid

erin

g to

sta

rt, in

fisc

al y

ear 2

016,

rout

ine

test

s of

cer

tain

food

s so

ld in

the

coun

try fo

r res

idue

s of

gly

phos

ate,

a h

erbi

cide

bro

adly

use

d in

agr

icul

ture

w

orld

-wid

e, in

clud

ing

in s

oybe

an c

ultiv

atio

n (s

ee a

lso M

PPU

Apr

. & M

ay’1

5). L

ast y

ear,

glyp

hosa

te h

as

been

labe

lled

as ‘p

roba

bly

carc

inog

enic

to h

uman

s’ b

y an

age

ncy

of th

e W

orld

Hea

lth O

rgan

izatio

n,

a cl

aim

dis

pute

d by

the

Eur

opea

n Fo

od S

afet

y Au

thor

ity.

Repo

rtedl

y, FD

A ha

s no

t te

sted

foo

d fo

r gl

ypho

sate

in th

e pa

st b

ecau

se o

f cos

t and

labo

ur re

stric

tions

and

bec

ause

gly

phos

ate

resi

due

leve

ls

are

deem

ed to

be

redu

ced

durin

g fo

od p

roce

ssin

g. T

oler

ance

leve

ls fo

r pes

ticid

e re

sidu

es in

food

are

se

t by

the

Envi

ronm

enta

l Pro

tect

ion

Agen

cy (E

PA).

The

tole

ranc

e le

vel f

or g

lyph

osat

e on

soy

bean

s is

40

ppb

.

179

FOO

D ST

ANDA

RDS

& FO

OD

SAFE

TY

POLI

CIE

S

Uni

ted

Stat

esM

ayO

live

oil

Con

cern

ed a

bout

repo

rts th

at d

escr

ibe

the

prev

alen

ce o

f adu

ltera

ted

and

fraud

ulen

tly la

bele

d ol

ive

oil

impo

rted

into

the

coun

try, U

.S. l

awm

aker

s pr

opos

ed th

at th

e co

untry

’s Fo

od a

nd D

rug

Adm

inis

tratio

n (F

DA) l

ooks

into

the

cre

atio

n of

a s

ampl

ing

and

test

ing

syst

em fo

r im

porte

d ol

ive

oil.

Trad

ing

firm

s co

mm

ente

d th

at t

estin

g ou

ght

to a

pply

als

o to

dom

estic

ally

pro

duce

d ol

ive

oil.

Furth

erm

ore,

the

y po

inte

d ou

t tha

t bef

ore

FDA

test

ing

can

be e

ffect

ive,

spe

cific

sta

ndar

ds o

f ide

ntity

nee

d to

be

agre

ed

upon

and

impl

emen

ted

natio

nwid

e. A

part

from

fed

eral

reg

ulat

ions

gov

erni

ng v

olun

tary

labe

lling

of

oliv

e oi

l (se

e M

PPU

Dec

.’10)

and

from

cer

tain

defi

nitio

ns u

sed

in in

divi

dual

sta

tes

(see

for

inst

ance

M

PPU

May

/Nov

.’14)

, the

Uni

ted

Stat

es d

oes

not h

ave

a se

t of b

indi

ng n

atio

nal s

tand

ards

. The

exi

stin

g in

tern

atio

nal s

tand

ards

are

sai

d to

be

of li

mite

d va

lue,

con

side

ring

that

they

rem

ain

mos

tly u

nenf

orce

d (s

ee a

lso M

PPU

Nov

.’13)

.

180

FOO

D ST

ANDA

RDS

& FO

OD

SAFE

TY

POLI

CIE

S

Glo

bal

July

Oliv

e oi

l Th

e In

tern

atio

nal O

live

Cou

ncil

(IOC

) app

rove

d a

revi

sion

in it

s st

anda

rd fo

r ext

ra v

irgin

oliv

e oi

l in

a bi

d to

allo

w o

ils p

rodu

ced

from

two

spec

ific

oliv

e cu

ltiva

rs to

mee

t the

par

amet

ers

for t

hat g

rade

. Und

er

the

revi

sed

stan

dard

, the

max

imum

allo

wed

con

tent

of t

hree

fatty

aci

ds (h

epta

deca

noic

, hep

tade

ceno

ic

and

eico

seno

ic a

cid)

, whi

ch c

hara

cter

ize o

ils p

rodu

ced

from

the

Italia

n va

rietie

s C

arol

ea a

nd C

orat

ina,

ha

ve b

een

rais

ed. P

ossi

bilit

ies

that

the

incr

ease

d lim

its c

ould

faci

litat

e fra

ud h

ave

been

rule

d ou

t by

a gr

oup

of e

xper

ts a

dvis

ing

the

IOC

.

Oilcrops complex: Policy changes and industry measures - Annual compendium 2016 31

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

181

GM

O P

OLI

CIE

SC

hina

Febr

uary

GM

soy

bean

In

Febr

uary

, C

hina

’s re

gula

tors

ap

prov

ed

the

impo

rtatio

n of

th

e G

M

soyb

ean

varie

ty

‘Rou

ndup

Read

y2Xt

end’

(see

also

MPP

U S

ep.’1

4). T

he h

igh-

yiel

ding

varie

ty w

as d

evel

oped

in th

e U

nite

d St

ates

to to

lera

te a

pplic

atio

ns o

f bot

h G

lyph

osat

e an

d Di

cam

ba h

erbi

cide

s am

id g

row

ing

prob

lem

s of

G

lyph

osat

e-re

sist

ant w

eeds

in N

orth

Am

eric

a. A

ppro

val b

y C

hina

– th

e to

p de

stin

atio

n fo

r US

soyb

ean

expo

rts –

was

a k

ey c

ondi

tion

for t

he c

omm

erci

al la

unch

ing

of th

e ne

w v

arie

ty in

Nor

th A

mer

ica.

Whi

le

the

new

soy

bean

var

iety

is e

xpec

ted

to b

e m

arke

ted

soon

in C

anad

a, w

here

the

use

of D

icam

ba is

al

low

ed, s

ales

will

rem

ain

on h

old

in t

he U

nite

d St

ates

, pen

ding

cle

aran

ce o

f th

e he

rbic

ide

by t

he

US

Envi

ronm

enta

l Pro

tect

ion

Agen

cy (s

ee M

PPU

Feb

.’15)

.

182

GM

O P

OLI

CIE

SC

hina

Augu

stG

M g

rain

s &

Oilc

rops

In it

s fiv

e-ye

ar p

lan

for s

cien

ce a

nd te

chno

logy

(end

ing

2020

), th

e G

over

nmen

t of C

hina

ann

ounc

ed th

at

it w

ill su

ppor

t the

dev

elop

men

t of G

M c

rop

varie

ties

– in

clud

ing

mai

ze a

nd s

oybe

ans

– as

par

t of n

ew

effor

ts to

mak

e ag

ricul

tura

l pro

duct

ion

mor

e effi

cien

t and

boo

st c

rop

outp

ut. T

o da

te, C

hina

has

onl

y ap

prov

ed G

M te

chno

logy

for c

otto

n. T

he n

ew p

lan

envi

sage

s th

e co

mm

erci

aliza

tion

of p

est-t

oler

ant

mai

ze a

nd h

erbi

cide

-resi

dent

soyb

ean

varie

ties.

Mos

t lik

ely,

the

Gov

ernm

ent w

ill ro

ll out

bio

tech

varie

ties

of in

dust

rial c

rops

like

mai

ze fi

rst,

mov

ing

to fo

od c

rops

suc

h as

soy

a at

a la

ter s

tage

. The

laun

ch o

f bi

otec

h fo

od c

rops

wou

ld b

e de

laye

d be

caus

e of

con

sum

er c

once

rns

over

per

ceiv

ed h

ealth

risk

s. G

M

soy

culti

vatio

n al

so fa

ces

resi

stan

ce fr

om t

he d

omes

tic s

oybe

an in

dust

ry, w

hich

sel

ls lo

cally

gro

wn

GM

-free

soy

bean

s (fo

r use

in fo

od p

rodu

cts

such

as

tofu

and

soy

-sau

ce) a

t a p

rem

ium

to im

porte

d G

M s

oybe

ans.

In a

ntic

ipat

ion

of th

e in

trodu

ctio

n of

GM

food

cro

ps in

to th

e m

arke

t, th

e go

vern

men

t w

ill w

ork

on a

law

on

GM

food

saf

ety

– in

clud

ing

labe

lling

rule

s fo

r foo

d pr

oduc

ts e

xcee

ding

a c

erta

in

thre

shol

d of

GM

O c

onte

nt. R

epor

tedl

y, re

cent

pro

posa

ls to

cre

ate

sepa

rate

zon

es fo

r gro

win

g no

n-G

M

soyb

eans

hav

e be

en re

ject

ed b

y th

e go

vern

men

t.

183

GM

O P

OLI

CIE

SC

hina

Dece

mbe

rG

M s

oybe

anFr

om M

ay 1

, the

cul

tivat

ion,

pro

cess

ing

and

sellin

g of

GM

soy

bean

s, ri

ce a

nd m

aize

will

be p

rohi

bite

d in

Hei

long

jiang

, Chi

na’s

mai

n gr

ain

prod

ucin

g pr

ovin

ce. R

epor

tedl

y, th

e su

pply

of G

M s

eeds

and

the

sale

and

impo

rt of

all e

dibl

e fa

rm p

rodu

ce c

onta

inin

g G

M in

gred

ient

s w

ill al

so b

e ba

nned

. GM

-food

may

on

ly b

e so

ld in

a s

peci

al z

one,

with

cle

ar la

bellin

g. C

onsu

mer

con

cern

s ov

er p

erce

ived

hea

lth ri

sks

of

GM

pro

duct

s to

geth

er w

ith re

ports

of i

llega

l use

of G

M c

rops

am

ong

farm

ers

and

food

man

ufac

ture

rs

(see

MPP

U S

ep.&

Oct

.’15)

are

sai

d to

hav

e pr

ompt

ed th

e ba

n. T

he p

rovi

ncia

l ini

tiativ

e ap

pear

s to

be

in

cont

rast

to re

cent

mov

es b

y C

hina

’s ce

ntra

l gov

ernm

ent.

As p

art o

f new

effo

rts to

mak

e th

e co

untry

’s ag

ricul

tura

l pro

duct

ion

mor

e effi

cien

t an

d bo

ost

crop

out

put,

Chi

na p

ledg

ed t

o su

ppor

t th

e gr

adua

l in

trodu

ctio

n of

GM

cro

ps a

nd a

nnou

nced

impr

ovem

ents

in it

s G

MO

regu

lato

ry m

echa

nism

s to

add

ress

ris

ks a

nd s

afet

y co

ncer

ns (s

ee M

PPU

May

’15

& Se

p.’1

6). A

lthou

gh p

rovi

ncia

l offi

cial

s re

itera

ted

thei

r su

ppor

t for

the

rese

arch

and

dev

elop

men

t of t

rans

geni

c te

chno

logy

, the

y re

com

men

ded

prud

ence

in

appl

ying

suc

h te

chni

ques

in c

rop

prod

uctio

n. C

urre

ntly,

in C

hina

, the

cul

tivat

ion

of a

ny G

M c

rops

exc

ept

for c

otto

n an

d pa

paya

rem

ains

pro

hibi

ted,

whi

le th

e im

porta

tion

of G

M s

oybe

ans

for u

se in

ani

mal

feed

is

allo

wed

. Acc

ordi

ng to

mar

ket e

xper

ts, H

eilo

ngjia

ng’s

initi

ativ

e is

prim

arily

aim

ed a

t pro

tect

ing

the

prov

ince

’s po

sitio

n as

a s

uppl

ier o

f non

-GM

soy

bean

s to

the

dom

estic

and

inte

rnat

iona

l mar

ket.

184

GM

O P

OLI

CIE

SEu

rope

an U

nion

Ja

nuar

yG

M c

rops

The

prop

osal

of t

he E

urop

ean

Com

mis

sion

to e

nabl

e in

divi

dual

EU

mem

ber s

tate

s to

rest

rict o

r ban

th

e sa

le o

f EU

-app

rove

d G

MO

pro

duct

s on

thei

r res

pect

ive

terri

torie

s ha

s be

en s

cree

ned

by th

e le

gal

serv

ice

of th

e Eu

rope

an C

ounc

il. T

he la

tter e

xpre

ssed

ser

ious

dou

bts

abou

t the

dra

ft la

w’s

com

patib

ility

with

bot

h th

e bl

oc’s

sing

le m

arke

t prin

cipl

e an

d W

TO ru

les.

Las

t yea

r, th

e pr

opos

al w

as re

ject

ed o

n si

mila

r gro

unds

by

the

Euro

pean

Par

liam

ent,

in a

dditi

on to

bei

ng c

ritic

ized

by th

e bi

otec

hnol

ogy

indu

stry

an

d an

ti-G

MO

cam

paig

n gr

oups

alik

e (s

ee M

PPU

Nov

.’15)

.

32 Oilcrops complex: Policy changes and industry measures - Annual compendium 2016

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

185

GM

O P

OLI

CIE

SEu

rope

an U

nion

Fe

brua

ryG

M s

oybe

anTh

e Eu

rope

an P

arlia

men

t is

sued

a n

on-b

indi

ng r

esol

utio

n th

at c

alls

on

the

Euro

pean

Com

mis

sion

to

with

draw

its

prop

osed

app

rova

l of t

hree

new

GM

soy

bean

var

ietie

s ch

arac

teriz

ed b

y to

lera

nce

to

glyp

hosa

te-b

ased

her

bici

des.

The

reso

lutio

n po

ints

out

that

the

prop

osal

lack

s th

e su

ppor

t of a

qua

lified

m

ajor

ity o

f m

embe

r st

ates

and

tha

t an

age

ncy

of t

he W

orld

Hea

lth O

rgan

izatio

n re

cent

ly c

lass

ified

gl

ypho

sate

as

‘pro

babl

y ca

rcin

ogen

ic t

o hu

man

s’ (

see

MPP

U A

pr.’1

5).

The

EU’s

own

food

saf

ety

auth

ority

last

yea

r asc

erta

ined

that

gly

phos

ate

wer

e ‘u

nlik

ely

to b

e ca

rcin

ogen

ic’ (

see

MPP

U D

ec.’1

5).

186

GM

O P

OLI

CIE

SEu

rope

an U

nion

Ju

neG

M s

oybe

anTh

ree

new

GM

O s

oybe

an v

arie

ties,

cul

tivat

ion

of w

hich

com

men

ced

in th

e U

nite

d St

ates

and

Can

ada,

ar

e ye

t to

be a

ppro

ved

in th

e Eu

rope

an U

nion

a re

gula

r buy

er o

f soy

bean

s fro

m N

orth

Am

eric

a (s

ee a

lso

MPP

U M

ar.’1

6). T

he E

urop

ean

Com

mis

sion

, the

bod

y in

cha

rge

of g

rant

ing

the

appr

oval

s, e

xpla

ined

th

at it

was

fol

low

ing

the

cust

omar

y pr

ecau

tiona

ry,

scie

nce-

base

d ap

proa

ch in

ass

essi

ng t

he n

ew

biot

ech

crop

s. M

eanw

hile

, EU

trad

e gr

oups

war

ned

that

, in

the

abse

nce

of a

fina

l dec

isio

n, im

porte

rs

coul

d de

cide

to re

stric

t pur

chas

es fr

om N

orth

Am

eric

a to

avo

id th

e ris

k of

car

goes

con

tain

ing

trace

s of

un

auth

orize

d G

M m

ater

ial b

eing

reje

cted

at t

he b

orde

rs (s

ee a

lso M

PPU

Jun

e’16

). Th

e tra

de a

dvis

ed

that

tim

ely

appr

oval

– i.

e. b

efor

e co

ncer

ned

crop

s ar

e ha

rves

ted

and

ente

r tra

de –

will

be e

ssen

tial t

o en

sure

the

viab

ility

of fo

od im

ports

and

lives

tock

ope

ratio

ns in

the

EU. R

epor

tedl

y, in

the

Uni

ted

Stat

es,

the

com

pani

es t

hat

laun

ched

the

new

var

ietie

s ar

e w

orki

ng o

n m

easu

res

to p

reve

nt G

M t

raits

from

en

terin

g sh

ipm

ents

des

tined

to th

e Eu

rope

an m

arke

t.

187

GM

O P

OLI

CIE

SEu

rope

an U

nion

Ju

lyG

M s

oybe

anO

n 22

Jul

y 20

16, t

he E

U C

omm

issi

on a

utho

rized

thre

e ne

w G

M-s

oybe

an v

arie

ties,

who

se a

ppro

val

was

kee

nly

awai

ted

by th

e in

tern

atio

nal t

rade

(see

MPP

U J

uly’

16).

The

varie

ties

have

bee

n au

thor

ized

for i

mpo

rt an

d pr

oces

sing

for f

ood

and

feed

use

, but

not

for c

ultiv

atio

n. T

he v

arie

ties

conc

erne

d ar

e M

onsa

nto’

s 89

788x

8770

8 (k

now

n as

‘Rou

ndup

-Rea

dy-2

-Xte

nd’)

and

8978

8x87

705

(‘Vis

tive

Gol

d’),

and

Baye

r’s F

G72

(‘Ba

lanc

e G

T’).

The

auth

oriza

tions

are

val

id fo

r 10

year

s. A

ny p

rodu

cts

prod

uced

from

th

ese

GM

Os

will

be s

ubje

ct to

the

EU’s

labe

lling

and

trace

abilit

y ru

les.

The

EU

’s ap

prov

al c

lear

s th

e w

ay

for t

he v

arie

ties’

wor

ldw

ide

culti

vatio

n an

d w

ill al

low

gra

in tr

ader

s an

d pr

oces

sors

in N

orth

Am

eric

a to

lif

t rec

ently

intro

duce

d m

arke

ting

rest

rictio

ns fo

r the

var

ietie

s in

que

stio

n (s

ee M

PPU

Jun

e’16

).

188

GM

O P

OLI

CIE

SEu

rope

an U

nion

De

cem

ber

GM

soy

bean

The

Euro

pean

Foo

d Sa

fety

Age

ncy

(EFS

A) h

as is

sued

a s

cien

tific

opin

ion

on th

e pl

acin

g on

the

mar

ket

of in

sect

-resi

stan

t soy

bean

var

iety

DAS

-814

19-2

(kno

wn

unde

r the

bra

nd n

ame

‘Con

kest

a’) f

or fo

od/

feed

use

s, im

port

and

proc

essi

ng, c

oncl

udin

g th

at it

is a

s sa

fe a

nd a

s nu

tritio

us a

s its

con

vent

iona

l non

-G

M c

ount

erpa

rt. T

he E

FSA

opin

ion

has

been

forw

arde

d fo

r con

side

ratio

n by

the

Euro

pean

Com

mis

sion

an

d m

embe

r sta

tes.

189

GM

O P

OLI

CIE

SEu

rope

an U

nion

De

cem

ber

GM

rape

seed

EU m

embe

r st

ates

and

the

Euro

pean

Com

mis

sion

agr

eed

to e

xten

d by

thre

e ye

ars

the

phas

ing-

out

perio

d fo

r tra

ces

of t

hree

obs

olet

e G

M r

apes

eed

varie

ties.

The

pre

viou

sly

auth

orize

d va

rietie

s w

ere

prim

arily

cul

tivat

ed in

Can

ada,

but

are

cur

rent

ly n

o lo

nger

com

mer

cial

ized

as s

uch.

190

GM

O P

OLI

CIE

SIn

dia

Augu

stG

M

mus

tard

seed

Task

ed w

ith re

view

ing

the

avai

labl

e ev

iden

ce o

n th

e su

itabi

lity

of a

loca

lly d

evel

oped

GM

mus

tard

seed

fo

r In

dian

soi

ls a

nd w

ith a

sses

sing

pot

entia

l ris

ks t

o he

alth

and

eco

logy

, th

e G

enet

ic E

ngin

eerin

g Ap

prov

al C

omm

ittee

of t

he G

over

nmen

t of I

ndia

issu

ed a

favo

urab

le a

sses

smen

t on

safe

ty te

sts

carri

ed

out s

o fa

r. Su

ch te

chni

cal c

lear

ance

nee

ds to

be

follo

wed

by

mul

tiple

pol

itica

l app

rova

ls b

efor

e th

e cr

op

can

be la

unch

ed c

omm

erci

ally.

Mea

nwhi

le, t

he p

ublic

opp

ositi

on to

GM

cro

ps re

mai

ns s

trong

, and

to

date

onl

y a

limite

d nu

mbe

r of n

on-fo

od b

iote

ch c

rops

(not

ably

cot

ton)

are

allo

wed

to b

e gr

own

in In

dia.

Oilcrops complex: Policy changes and industry measures - Annual compendium 2016 33

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

191

GM

O P

OLI

CIE

SPh

ilippi

nes

Febr

uary

GM

cro

psIn

Dec

embe

r 20

15,

the

Supr

eme

Cou

rt of

the

Phi

lippi

nes

orde

red

a te

mpo

rary

hal

t on

app

rovi

ng

appl

icat

ions

for

the

tes

ting,

con

tain

ed u

se,

impo

rtatio

n an

d co

mm

erci

aliza

tion

of G

M c

rops

and

de

rived

pro

duct

s. T

he b

an w

ill re

mai

n in

pla

ce u

ntil t

he g

over

nmen

t has

refo

rmed

the

curre

nt re

gula

tory

pr

oces

s fo

r GM

Os,

ens

urin

g fu

ll co

mpl

ianc

e w

ith e

xist

ing

bios

afet

y an

d en

viro

nmen

tal s

tand

ards

and

m

eetin

g th

e re

quire

men

t to

hold

tran

spar

ent p

ublic

con

sulta

tion

proc

esse

s. T

he c

ourt

said

it a

pplie

d th

e pr

ecau

tiona

ry p

rinci

ple,

citi

ng (i

) lac

k of

sci

entifi

c ce

rtain

ty o

n G

MO

saf

ety

for

the

envi

ronm

ent,

and

(ii) in

suffi

cien

t atte

ntio

n by

loca

l bio

tech

com

pani

es to

the

safe

ty o

f GM

cro

ps a

nd fo

ods.

Dire

ctly

aff

ecte

d by

the

cour

t’s d

ecis

ion

are

not o

nly

on-g

oing

fiel

d tri

als

with

GM

cro

ps, b

ut a

lso

part

of th

e co

untry

’s m

aize

cul

tivat

ion

as w

ell a

s th

e im

porta

tion

of G

M c

rops

and

der

ived

pro

duct

s, n

otab

ly

soyb

ean

mea

l. Ph

ilippi

ne fe

ed m

illers

impo

rt 2

milli

on to

nnes

of s

oybe

an m

eal e

ach

year

, nea

rly a

ll of

w

hich

is g

enet

ical

ly m

odifi

ed. T

he n

on-re

new

al o

f GM

soy

mea

l im

ports

per

mits

wou

ld o

blig

e bu

yers

to

sour

ce n

on-G

M p

rodu

ct, w

hich

is 1

5–30

per

cent

mor

e ex

pens

ive.

The

Gov

ernm

ent o

f the

Phi

lippi

nes

has

filed

a m

otio

n fo

r rec

onsi

dera

tion

of th

e co

urt’s

dec

isio

n an

d se

t up

an in

ter-a

genc

y pa

nel t

o dr

aft

new

gui

delin

es fo

r GM

O u

se a

nd im

ports

. Las

t mon

th, t

he p

anel

beg

an h

oldi

ng p

ublic

con

sulta

tions

on

a dr

aft a

dmin

istra

tive

orde

r. To

dat

e, n

o ca

ses

of s

oym

eal s

hipm

ent d

isru

ptio

ns h

ave

been

repo

rted

by

the

trade

.

192

GM

O P

OLI

CIE

SPh

ilippi

nes

Mar

chG

M c

rops

In r

espo

nse

to a

Dec

embe

r 20

15 c

ourt

orde

r th

at b

anne

d G

M p

rodu

cts

pend

ing

a re

form

of

the

coun

try’s

regu

lato

ry p

roce

ss fo

r GM

Os

(see

MPP

U F

eb. ’

16),

the

Gov

ernm

ent o

f the

Phi

lippi

nes

has

issu

ed a

set

of r

ules

tha

t ar

e m

eant

to

repl

ace

exis

ting

regu

latio

ns. R

epor

tedl

y, th

e ne

w d

irect

ives

, w

hich

are

exp

ecte

d to

take

effe

ct in

Apr

il 20

16, g

ive

mor

e co

nsid

erat

ion

to s

ocio

-eco

nom

ic is

sues

and

en

viro

nmen

tal i

mpa

cts

in ri

sk a

sses

smen

t pro

cedu

res,

whi

le a

lso

fost

erin

g gr

eate

r pub

lic p

artic

ipat

ion

in b

iosa

fety

dec

isio

n m

akin

g. T

he g

over

nmen

t’s p

rom

pt f

ollo

w-u

p is

exp

ecte

d to

giv

e re

lief

to t

he

Philip

pine

s’ s

oym

eal im

porte

rs a

nd m

aize

farm

ers,

who

se a

ctiv

ities

dep

end

heav

ily o

n G

M-te

chno

logy

.

193

GM

O P

OLI

CIE

SPh

ilippi

nes

Augu

stG

M c

rops

The

Philip

pine

Sup

rem

e C

ourt

info

rmed

that

it re

vers

ed it

s De

cem

ber 2

015

deci

sion

to s

top

the

field

te

stin

g, p

ropa

gatio

n, c

omm

erci

aliza

tion

and

impo

rtatio

n of

GM

pro

duct

s in

the

coun

try (s

ee a

lso M

PPU

Fe

b./A

pr.’1

6). T

he fu

ll de

cisi

on is

exp

ecte

d to

be

rele

ased

som

etim

e in

Sep

tem

ber 2

016.

194

GM

O P

OLI

CIE

SRu

ssia

n Fe

dera

tion

May

GM

O

labe

lling

The

Russ

ian

Fede

ratio

n pu

blis

hed

draf

t am

endm

ents

to

its fo

od la

bellin

g re

gula

tions

. The

rev

isio

ns

conc

ern

new

requ

irem

ents

for

labe

lling

food

pro

duct

s co

ntai

ning

GM

Os.

Und

er th

e pr

opos

al, l

abel

s w

ould

nee

d to

repo

rt G

MO

s w

hen

the

pres

ence

of a

bio

tech

com

pone

nt e

xcee

ds 0

.9 p

erce

nt (i

n te

rms

of p

rodu

ct w

eigh

t). T

he re

gula

tion

wou

ld a

pply

to th

e Ru

ssia

n Fe

dera

tion

and

the

othe

r mem

bers

of t

he

Eura

sian

Eco

nom

ic U

nion

.

195

GM

O P

OLI

CIE

SRu

ssia

n Fe

dera

tion

July

GM

cro

psA

bill s

igne

d in

Jul

y 20

16 p

rohi

bits

the

culti

vatio

n of

GM

cro

ps o

n th

e te

rrito

ry o

f the

Rus

sian

Fed

erat

ion.

Th

e ne

w la

w a

lso

stre

ngth

ens

stat

e co

ntro

l ove

r the

impo

rtatio

n an

d pr

oces

sing

of G

M o

rgan

ism

s (a

nd

prod

ucts

der

ived

fro

m s

uch

orga

nism

s) a

nd r

equi

res

rele

vant

sta

te a

genc

ies

to m

onito

r th

e eff

ects

of

GM

org

anis

ms

on b

oth

the

envi

ronm

ent a

nd h

uman

hea

lth. T

he im

porta

tion

of G

M o

rgan

ism

s an

d pr

oduc

ts fo

r sci

entifi

c re

sear

ch a

nd fo

r foo

d/fe

ed u

se w

ill co

ntin

ue to

be

allo

wed

, pro

vide

d th

ey h

ave

been

form

ally

regi

ster

ed fo

r suc

h us

es.

196

GM

O P

OLI

CIE

SRu

ssia

n Fe

dera

tion

Nov

embe

rG

M s

oybe

an

& so

ymea

lRu

ssia

’s Fe

dera

l Se

rvic

e fo

r Ve

terin

ary

and

Phyt

osan

itary

Sur

veilla

nce

sign

ed a

gree

men

ts w

ith

coun

terp

art a

genc

ies

in A

rgen

tina

and

Para

guay

to re

gula

te im

ports

of G

M s

oybe

ans/

soyb

ean

mea

l fro

m th

e tw

o co

untri

es in

to th

e Ru

ssia

n te

rrito

ry. T

rade

in th

e co

ncer

ned

prod

ucts

foun

dere

d ea

rlier

th

is y

ear,

follo

win

g th

e de

tect

ion

of G

MO

line

s th

at w

ere

not r

egis

tere

d in

the

Russ

ian

Fede

ratio

n. T

o gu

aran

tee

the

abse

nce

of u

nreg

iste

red

GM

O lin

es, a

ll fut

ure

cons

ignm

ents

from

Arg

entin

a an

d Pa

ragu

ay

will

be a

ccom

pani

ed b

y offi

cial

cer

tifica

tes

deta

iling

whi

ch G

MO

line

s ar

e pr

esen

t.

34 Oilcrops complex: Policy changes and industry measures - Annual compendium 2016

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

197

GM

O P

OLI

CIE

SU

krai

neDe

cem

ber

GM

soy

bean

Ukr

aine

’s Fo

od S

afet

y an

d C

onsu

mer

Pro

tect

ion

Serv

ice

(FSC

PS)

deci

ded

to c

heck

the

cou

ntry

’s ag

ricul

tura

l exp

orts

for G

MO

-con

tent

, men

tioni

ng s

oybe

ans

as a

par

ticul

ar c

once

rn. I

n pr

inci

ple,

giv

en

that

no

GM

soy

bean

var

iety

has

bee

n cl

eare

d fo

r cul

tivat

ion

in th

e co

untry

, Ukr

aine

has

the

pote

ntia

l to

beco

me

a ke

y su

pplie

r of G

M-fr

ee s

oybe

ans

to th

e EU

and

the

Russ

ian

Fede

ratio

n. H

owev

er, a

ccor

ding

to

priv

ate

sour

ces,

a s

ubst

antia

l par

t of t

he c

ount

ry’s

soy

crop

is n

ow g

row

n fro

m ill

egal

ly im

porte

d G

M

varie

ties,

and

loca

l sup

ply

chai

ns a

re n

ot e

quip

ped

for s

egre

gatin

g no

n-G

M fr

om G

M p

rodu

ce. F

SCPS

in

form

ed th

at it

wou

ld s

eize

and

dis

pose

of a

ny e

xpor

t con

sign

men

t fou

nd to

con

tain

GM

O p

rodu

cts,

in

a b

id to

pro

tect

the

inte

rest

s of

dom

estic

non

-GM

soy

bean

pro

duce

rs.

198

GM

O P

OLI

CIE

SU

nite

d St

ates

Mar

chG

MO

la

bellin

gIn

the

Uni

ted

Stat

es, t

he d

eadl

ock

conc

erni

ng la

bellin

g of

GM

ingr

edie

nts

in fo

od p

rodu

cts

at F

eder

al

leve

l is c

ontin

uing

(see

also

MPP

U J

uly,

Aug.

& D

ec.’1

5). I

n M

arch

201

6, th

e U

S Se

nate

cou

ld n

ot a

gree

on

a d

raft

bill

that

wou

ld in

trodu

ce v

olun

tary

GM

-labe

lling

natio

nwid

e. In

the

mea

ntim

e, in

itiat

ives

to

have

GM

food

pro

duct

s m

anda

toril

y la

belle

d ar

e be

ing

purs

ued

in s

ever

al s

tate

s, in

clud

ing

Verm

ont,

whe

re a

law

req

uirin

g la

bels

on

all f

oods

con

tain

ing

GM

Os

is p

oise

d to

tak

e eff

ect

in J

uly

2016

. C

onne

ctic

ut a

nd M

aine

hav

e pa

ssed

ana

logo

us la

ws,

but

thos

e w

ill en

ter i

nto

forc

e on

ly w

hen

othe

r st

ates

ena

ct s

imila

r mea

sure

s. In

tere

stin

gly,

in re

cent

wee

ks, a

num

ber o

f foo

d tra

ding

, man

ufac

turin

g an

d re

tailin

g co

mpa

nies

dec

ided

not

to w

ait f

or fe

dera

l law

mak

ers

to a

ct. I

n Ja

nuar

y 20

16, C

ampb

ell

Soup

– fo

rmer

ly a

n ad

voca

te fo

r vol

unta

ry la

bellin

g –

star

ted

back

ing

natio

nwid

e m

anda

tory

labe

lling

(see

MPP

U F

eb.’1

6), w

hile

the

com

pani

es G

ener

al M

ills, C

onAg

ra, K

ello

gg’s

and

Mar

s al

so a

nnou

nced

pl

ans

to u

se la

bels

dis

clos

ing

the

pres

ence

of G

MO

s in

food

pro

duct

s so

ld th

roug

hout

the

coun

try.

Repo

rtedl

y, th

e de

cisi

on t

o im

plem

ent

labe

lling

natio

nwid

e re

flect

s th

e im

prac

tical

nat

ure

and

high

co

sts

asso

ciat

ed w

ith a

ddre

ssin

g st

ate-

spec

ific

labe

lling

requ

irem

ents

.

199

GM

O P

OLI

CIE

SU

nite

d St

ates

July

GM

O

labe

lling

In th

e U

S St

ate

of V

erm

ont,

as o

f 1st

Jul

y 20

16, a

ll G

MO

pre

senc

e in

food

pro

duct

s m

ust b

e cl

early

di

spla

yed

on la

bels

. Sim

ilar l

egis

latio

n ha

s be

en c

onsi

dere

d in

oth

er s

tate

s bu

t fai

led

to p

ass.

In th

e m

eant

ime,

effo

rts b

y fe

dera

l law

mak

ers

to a

gree

on

natio

n-w

ide

labe

lling

rule

s go

on

amid

con

cern

s th

at d

iffer

ent

regu

latio

ns a

cros

s st

ate

lines

cou

ld h

ampe

r do

mes

tic fo

od t

rade

and

infla

te c

osts

for

labe

lling

and

dist

ribut

ion

(see

also

MPP

U A

pr.’1

6). I

n Ju

ne 2

016,

the

US

Sena

te re

view

ed a

dra

ft bi

ll th

at w

ould

giv

e fo

od m

anuf

actu

rers

the

optio

n to

eith

er p

rovi

de o

n-pa

ckag

e la

bellin

g of

GM

ingr

edie

nts

or fu

rnis

h Q

R (Q

uick

Res

pons

e) c

odes

, pho

ne n

umbe

rs o

r web

site

add

ress

es w

here

con

sum

ers

can

obta

in a

dditi

onal

info

rmat

ion

abou

t GM

O in

gred

ient

s. T

he d

raft

bill s

till h

as to

be

revi

ewed

by

the

Low

er

Hou

se.

If pa

ssed

by

both

cha

mbe

rs o

f C

ongr

ess,

the

nat

iona

l bill

coul

d nu

llify

Verm

ont’s

law.

The

co

untry

’s fa

rm c

omm

unity

and

food

indu

stry

crit

icize

d pa

st m

anda

tory

labe

lling

prop

osal

s, a

rgui

ng th

at

ther

e ar

e no

mea

sura

ble

heal

th c

once

rns

from

GM

food

s. W

ith u

p to

80

perc

ent o

f sup

erm

arke

t foo

ds

repo

rted

to c

onta

in G

M in

gred

ient

s (n

otab

ly G

M s

oy, m

aize

, rap

esee

d an

d su

gar

beet

), m

anda

tory

la

bellin

g sc

hem

es w

ould

affe

ct m

uch

of th

e co

untry

’s fo

od in

dust

ry. R

ecen

tly, s

ome

food

man

ufac

ture

rs

com

mitt

ed to

vol

unta

rily

labe

l the

ir G

M p

rodu

cts

natio

nwid

e (s

ee M

PPU

Apr

.’16)

.

Oilcrops complex: Policy changes and industry measures - Annual compendium 2016 35

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

200

GM

O P

OLI

CIE

SU

nite

d St

ates

July

GM

O

labe

lling

The

U.S

. Con

gres

s pa

ssed

a fe

dera

l bill

regu

latin

g m

anda

tory

labe

lling

of fo

od p

rodu

cts

cont

aini

ng

GM

Os.

The

bill,

whi

ch h

as b

een

sign

ed i

nto

law

by

the

U.S

. Pr

esid

ent

on 1

Aug

ust

2016

, w

ill ov

errid

e m

ore

strin

gent

mea

sure

s re

cent

ly p

asse

d in

the

sta

te o

f Ver

mon

t an

d co

nsid

ered

by

othe

r st

ates

(see

MPP

U J

uly’

16).

The

new

legi

slat

ion

give

s re

gula

tors

two

year

s to

writ

e de

taile

d ru

les

for

the

indu

stry

to fo

llow,

and

sm

all f

ood

man

ufac

ture

rs w

ill ha

ve th

ree

year

s to

com

ply.

Whe

n re

wor

king

an

d up

datin

g th

eir l

abel

s to

info

rm c

usto

mer

s ab

out G

M c

onte

nt, c

ompa

nies

will

have

the

choi

ce o

f us

ing

stra

ight

forw

ard

lang

uage

, sym

bols

or

digi

tal b

ar c

odes

that

can

be

scan

ned

by s

mar

tpho

nes.

Th

e U

S De

partm

ent

of A

gric

ultu

re w

ill de

term

ine

whi

ch b

iote

ch c

rops

fal

l und

er t

he n

ew la

bellin

g re

quire

men

t. U

SDA

will

also

be

requ

ired

to e

valu

ate

the

effec

tiven

ess

of d

igita

l sym

bols

a y

ear a

fter

the

law

is im

plem

ente

d. T

he c

ount

ry’s

food

indu

stry

wel

com

ed th

e co

mpr

omis

e bi

ll, s

ayin

g th

at it

will

avoi

d in

effici

enci

es in

the

food

sys

tem

and

pre

vent

hig

her f

ood

cost

s. H

owev

er, c

ritic

s w

arne

d th

at th

e op

tion

to u

se e

lect

roni

c la

bels

cou

ld li

mit

the

bill’s

sco

pe a

nd c

reat

e co

nfus

ion.

The

y re

ckon

that

few

cu

stom

ers

wou

ld c

lick

on th

e di

gita

l cod

es d

ispl

ayed

on

labe

ls. T

hey

also

exp

ress

ed c

once

rn th

at fo

od

ingr

edie

nts

that

, by

the

time

they

are

pro

cess

ed, c

onta

in a

lmos

t no

GM

mat

eria

l (su

ch a

s so

ybea

n oi

l an

d be

et s

ugar

) mig

ht n

ot fa

ll un

der t

he la

w’s

defin

ition

of G

M fo

od.

201

GM

O P

OLI

CIE

SU

nite

d St

ates

Augu

stG

MO

la

bellin

gU

SDA’

s Fo

od S

afet

y an

d In

spec

tion

Serv

ice

(FSI

S) h

as is

sued

a s

tate

men

t aut

horiz

ing

com

pani

es to

m

ake

labe

lling

clai

ms

that

no

GM

ingr

edie

nts

wer

e us

ed in

mea

t, po

ultry

and

egg

pro

duct

s. T

he a

genc

y ha

s pr

ovid

ed d

etai

led

guid

ance

on

how

to m

ake

such

‘neg

ativ

e cl

aim

s’. T

he a

bsen

ce o

f GM

ingr

edie

nts

need

s to

be

verifi

ed b

y a

third

-par

ty c

ertif

ying

org

aniza

tion.

202

OTH

ER P

OLI

CIE

S –

Prod

uctio

n su

stai

nabi

lity

Wes

t/Cen

tral

Afric

aN

ovem

ber

Oil

palm

Th

e go

vern

men

ts o

f sev

en A

frica

n pa

lm o

il pro

duci

ng c

ount

ries,

whi

ch to

geth

er re

pres

ent 7

0 pe

rcen

t of

Afric

a’s

tropi

cal f

ores

ts, p

ledg

ed to

pro

tect

thei

r for

ests

by

shift

ing

to s

usta

inab

le o

il pal

m d

evel

opm

ent,

with

sup

port

from

the

priv

ate

sect

or a

nd c

ivil

soci

ety

and

usin

g th

e pl

atfo

rm o

f the

Tro

pica

l For

est

Allia

nce.

A jo

int,

unpr

eced

ente

d de

clar

atio

n to

thi

s eff

ect

has

been

sig

ned

at t

he C

OP2

2 cl

imat

e ch

ange

talk

s in

Mar

rake

sh b

y offi

cial

s fro

m th

e C

entra

l Afri

can

Repu

blic

, the

Con

go, C

ôte

d’Iv

oire

, the

De

moc

ratic

Rep

ublic

of t

he C

ongo

, Gha

na, L

iber

ia, a

nd S

ierra

Leo

ne. T

he s

igna

torie

s ag

reed

to p

lace

su

stai

nabi

lity,

hum

an r

ight

s pr

otec

tion

and

colla

bora

tion

with

indu

stry

, in

dige

nous

peo

ple

and

civi

l so

ciet

y gr

oups

at t

he c

ente

r of t

he e

xpan

ding

pal

m o

il ind

ustry

in W

est a

nd C

entra

l Afri

ca. E

vide

ntly,

the

conc

erne

d go

vern

men

ts h

ave

reco

gnize

d th

e si

gnifi

cant

mar

ket s

igna

ls th

at m

any

glob

al b

usin

esse

s ha

ve p

rovi

ded

thro

ugh

thei

r pol

icy

to s

ourc

e su

stai

nabl

y pr

oduc

ed p

alm

oil.

203

OTH

ER P

OLI

CIE

S –

Prod

uctio

n su

stai

nabi

lity

Col

ombi

aJu

lyO

il pa

lm

Acco

rdin

g to

the

loca

l pre

ss,

a C

olom

bian

env

ironm

enta

l aut

horit

y or

dere

d a

palm

oil

com

pany

to

susp

end

vario

us o

pera

tions

due

to a

llege

d vi

olat

ions

of e

nviro

nmen

tal r

egul

atio

ns, in

clud

ing

was

tew

ater

du

mpi

ng a

nd a

llow

ing

com

post

-run

off to

leac

h in

to th

e lo

cal f

ores

t.

204

OTH

ER P

OLI

CIE

S –

Prod

uctio

n su

stai

nabi

lity

Ecua

dor

Oct

ober

Oil

palm

In

Ecu

ador

, w

here

clo

se t

o 90

per

cent

of

palm

oil

is s

ourc

ed f

rom

sm

allh

olde

rs,

the

Gov

ernm

ent

is w

orki

ng o

n a

juris

dict

iona

l ap

proa

ch f

or s

usta

inab

le p

alm

oil

prod

uctio

n, a

ccor

ding

to

RSPO

(R

ound

tabl

e on

Sus

tain

able

Pal

m O

il), th

e w

orld

’s pr

inci

pal b

ody

for s

usta

inab

ility

certi

ficat

ion.

Set

to

prom

ote

incl

usiv

e ce

rtific

atio

n m

etho

ds fo

r sm

allh

olde

rs, t

he in

itiat

ive

will

build

on

clos

e co

llabo

ratio

n be

twee

n lo

cal s

take

hold

ers

and

prov

inci

al g

over

nmen

ts t

o cu

rb t

he u

se o

f env

ironm

enta

lly h

arm

ful

prac

tices

whi

le a

lso

impr

ovin

g th

e w

elfa

re o

f sm

all-s

cale

pro

duce

rs. I

n cl

ose

colla

bora

tion

with

key

st

akeh

olde

rs s

uch

as p

alm

oil

com

pani

es,

NG

Os

and

UN

-RED

D (th

e U

nite

d N

atio

ns C

olla

bora

tive

Sche

me

on R

educ

ing

Emis

sion

s fro

m D

efor

esta

tion

and

Fore

st D

egra

datio

n in

Dev

elop

ing

Cou

ntrie

s),

pilo

t pro

gram

mes

rely

ing

on R

SPO

prin

cipl

es a

nd c

riter

ia h

ave

been

laun

ched

. Wor

ksho

ps w

ill be

hel

d to

intro

duce

the

conc

ept o

f sus

tain

abilit

y to

sm

allh

olde

rs a

nd to

impr

ove

capa

city

bui

ldin

g. C

ompa

rabl

e in

itiat

ives

are

alre

ady

unde

rway

in s

elec

ted

regi

ons

of M

alay

sia

and

Indo

nesi

a.

36 Oilcrops complex: Policy changes and industry measures - Annual compendium 2016

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

205

OTH

ER P

OLI

CIE

S –

Prod

uctio

n su

stai

nabi

lity

Indo

nesi

aJa

nuar

yO

il pa

lm

The

gove

rnm

ent o

f Ind

ones

ia se

t up

an a

genc

y tas

ked

with

rest

orin

g so

me

2 m

illion

hec

tare

s of d

amag

ed

peat

land

acr

oss

the

coun

try. I

n In

done

sia,

car

bon-

rich

peat

sw

amp

fore

sts

cont

inue

to b

e se

t on

fire

whe

n la

nd is

cle

ared

to d

evel

op p

lant

atio

ns c

rops

like

oil

palm

– a

pra

ctic

e th

at s

ends

sm

oke

acro

ss

the

entir

e re

gion

, cre

atin

g hu

man

hea

lth h

azar

ds a

nd o

ther

pro

blem

s. In

201

5, d

ry w

eath

er c

ause

d by

El

Niñ

o ex

acer

bate

d th

e pr

oble

m, l

eadi

ng t

o hi

gh le

vels

of p

ollu

tion

in n

eigh

bour

ing

Sing

apor

e an

d M

alay

sia.

The

new

ly c

reat

ed a

genc

y w

ill be

resp

onsi

ble

for

coor

dina

ting

peat

land

rest

orat

ion

effor

ts

acro

ss s

ever

al m

inis

tries

unt

il 20

20, c

once

ntra

ting

on s

even

pro

vinc

es in

Sum

atra

, Kal

iman

tan

and

Papu

a. W

ork

is e

xpec

ted

to fo

cus

on im

prov

ing

the

hydr

olog

y sy

stem

and

con

trollin

g th

e ne

twor

k of

ca

nals

, so

as to

min

imize

the

risk

of fu

ture

fire

s. T

he a

genc

y is

als

o su

ppos

ed to

ove

rsee

the

use

of

peat

land

s an

d th

e m

anag

emen

t of p

erm

its a

nd c

once

ssio

ns.

206

OTH

ER P

OLI

CIE

S –

Prod

uctio

n su

stai

nabi

lity

Indo

nesi

aM

ayO

il pa

lm

Indo

nesi

an g

over

nmen

t offi

cial

s in

form

ed th

at a

pea

tland

man

agem

ent m

etho

d de

velo

ped

in M

alay

sia,

ca

lled

com

pact

ion,

wou

ld b

e te

sted

in t

he c

ount

ry in

a b

id t

o cu

rb a

nnua

l fire

s in

pea

tland

are

as.

Mal

aysi

an e

xper

ts s

aid

the

met

hod

coul

d su

it In

done

sia’

s hi

ghly

por

ous

peat

land

s be

caus

e it

mad

e th

e so

il mor

e so

lid, p

reve

ntin

g it

from

losi

ng w

ater

qui

ckly,

hen

ce m

akin

g it

mor

e re

sist

ant t

o fir

e du

ring

the

dry

seas

on.

207

OTH

ER P

OLI

CIE

S –

Prod

uctio

n su

stai

nabi

lity

Indo

nesi

aM

ayO

il pa

lm

The

Pres

iden

t of I

ndon

esia

ann

ounc

ed a

new

mor

ator

ium

on

oil p

alm

con

cess

ions

as p

art o

f the

cou

ntry

’s eff

orts

to re

duce

the

sect

or’s

impa

ct o

n th

e en

viro

nmen

t. H

e ad

ded

that

he

expe

cts

the

sect

or’s

furth

er

grow

th to

orig

inat

e pr

imar

ily fr

om p

rodu

ctiv

ity im

prov

emen

ts –

rely

ing

on b

oth

the

intro

duct

ion

of h

ighe

r-yi

eldi

ng p

lant

ing

mat

eria

l and

the

dev

elop

men

t of

unc

ultiv

ated

land

und

er e

xist

ing

conc

essi

on.

No

timel

ine

and

impl

emen

tatio

n de

tails

wer

e pr

ovid

ed, b

ut a

pre

side

ntia

l reg

ulat

ion

is u

nder

pre

para

tion

to

form

the

lega

l bas

is fo

r the

mor

ator

ium

. The

new

mea

sure

wou

ld c

ompl

emen

t a 5

-yea

r old

mor

ator

ium

on

prim

ary

fore

sts

clea

ring

and

peat

land

con

vers

ion

(see

MPP

U M

ay’1

5). I

n pr

epar

atio

n of

the

new

m

orat

oriu

m,

rele

vant

min

istri

es a

nd lo

cal g

over

nmen

ts h

ave

been

inst

ruct

ed t

o re

view

all

exis

ting

plan

tatio

n pe

rmits

, so

as to

ens

ure

that

they

are

bas

ed o

n le

gal a

nd v

alid

land

acq

uisi

tion

proc

esse

s.

Acco

rdin

g to

gov

ernm

ent o

ffici

als,

sin

ce th

e m

orat

oriu

m’s

anno

unce

men

t, nu

mer

ous

appl

icat

ions

for

land

con

vers

ion

perm

its h

ave

been

reje

cted

. Som

e in

dust

ry e

xper

ts w

arne

d th

at th

e ne

w b

an c

ould

slow

do

wn

the

coun

try’s

econ

omic

gro

wth

and

lead

to c

ritic

al p

alm

oil s

uppl

y sh

orta

ges

and

pric

es in

crea

ses

at b

oth

natio

nal a

nd g

loba

l lev

el. O

ther

s w

elco

med

the

gove

rnm

ent’s

effo

rt to

focu

s on

inte

nsifi

catio

n ra

ther

than

on

land

exp

ansi

on. C

ivil

soci

ety

grou

ps e

xpre

ssed

dou

bts

abou

t the

new

pre

side

ntia

l pla

n,

poin

ting

to c

ritic

al e

nfor

cem

ent p

robl

ems

face

d un

der t

he e

xist

ing

mor

ator

ium

(alle

gedl

y re

sulti

ng fr

om

dece

ntra

lized

dec

isio

n-m

akin

g) a

nd to

obs

tacl

es fa

ced

in ra

isin

g yi

elds

, esp

ecia

lly a

t sm

allh

olde

r lev

el.

208

OTH

ER P

OLI

CIE

S –

Prod

uctio

n su

stai

nabi

lity

Indo

nesi

aJu

lyO

il pa

lm

Indo

nesi

a is

exp

ecte

d to

soo

n re

leas

e a

pres

iden

tial r

egul

atio

n th

at w

ould

ser

ve a

s a

basi

s fo

r th

e re

cent

ly a

nnou

nced

5-y

ear m

orat

oriu

m o

n ne

w o

il pal

m p

lant

atio

ns in

the

coun

try (s

ee M

PPU

Jun

e’16

). Ac

cord

ing

to p

ress

rep

orts

, the

dec

ree

coul

d co

mpr

ise

a ba

n on

app

rova

ls o

f pl

antin

g ex

pans

ions

in

to f

ores

ted

area

s w

ithin

exi

stin

g co

nces

sion

s. F

urth

erm

ore,

pla

ntat

ion

area

s th

at a

re n

ot u

sed

as

stip

ulat

ed in

con

cess

ion

perm

its a

s w

ell a

s co

nces

sion

s th

at h

ave

been

tran

sfer

red

to n

ew o

wne

rs m

ay

also

be

subj

ecte

d to

the

mor

ator

ium

. Rep

orte

dly,

the

gove

rnm

ent w

ill m

ake

use

of a

sin

gle

refe

renc

e m

ap t

hat

harm

onize

s th

e m

aps

used

by

diffe

rent

sta

te a

genc

ies

so a

s to

iden

tify

over

lapp

ing

land

co

nces

sion

s. O

vera

ll, th

e m

orat

oriu

m is

sai

d to

con

cern

abo

ut 3

.5 m

illion

hec

tare

s of

land

, sta

rting

with

95

0 00

0 he

ctar

es th

at h

ave

been

pro

pose

d by

pla

ntat

ion

com

pani

es fo

r exp

ansi

ons.

The

nat

ion’

s to

tal

area

und

er o

il pa

lm c

ultiv

atio

n is

est

imat

ed a

t 11.

4 m

illion

hec

tare

s. In

dust

ry s

ourc

es re

itera

ted

thei

r co

ncer

n th

at th

e ne

w m

orat

oriu

m th

reat

ens

outp

ut g

row

th a

nd in

vest

men

t in

the

palm

sec

tor.

Oilcrops complex: Policy changes and industry measures - Annual compendium 2016 37

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

209

OTH

ER P

OLI

CIE

S –

Prod

uctio

n su

stai

nabi

lity

Mal

aysi

aM

ayO

il pa

lm

In a

bid

to c

ontro

l the

gro

win

g an

nual

haz

e po

llutio

n pr

oble

ms

affec

ting

larg

e sw

athe

s of

Sou

thea

st

Asia

, the

Gov

ernm

ent o

f Mal

aysi

a pr

opos

ed to

am

end

the

coun

try’s

Envi

ronm

enta

l Pro

tect

ion

Act s

o as

to

allo

w t

he c

onfis

catio

n of

land

whe

re b

ig fi

res

are

disc

over

ed. T

he a

nnua

l out

brea

k of

fire

s in

M

alay

sia

(and

Indo

nesi

a) h

as b

een

dire

ctly

ass

ocia

ted

with

sla

sh-a

nd-b

urn

fore

st/p

eatla

nd-c

lear

ing

prac

tices

em

ploy

ed w

hen

new

oil

palm

pla

ntat

ions

are

dev

elop

ed. U

sed

as a

n ea

sy a

nd c

ost-e

ffect

ive

way

to c

lear

land

, suc

h ille

gal p

ract

ices

rele

ase

larg

e am

ount

s of

gre

enho

use

gase

s an

d pr

oduc

es a

de

nse

toxi

c sm

og th

at th

reat

ens

hum

an h

ealth

, com

prom

ises

cro

p yi

elds

and

affe

cts

air t

raffi

c. O

ffici

als

said

that

, und

er th

e pr

opos

ed a

men

dmen

t, th

e go

vern

men

t wou

ld s

eize

con

trol o

f lan

d irr

espe

ctiv

e of

pl

anta

tion

size

.

210

OTH

ER P

OLI

CIE

S –

Con

sum

ptio

n ta

xFr

ance

Janu

ary

Palm

oil

In J

anua

ry, F

ranc

e’s

Sena

te e

ndor

sed

a bi

odiv

ersi

ty b

ill th

at in

clud

es a

n in

crea

se in

the

coun

try’s

palm

oi

l exc

ise

tax

from

€ 1

03 (U

SD 1

15) t

o €

300

(USD

334

) per

ton

ne, c

iting

con

cern

s ab

out

the

oil’s

en

viro

nmen

tal f

ootp

rint a

nd a

llege

d he

alth

pro

blem

s as

soci

ated

with

the

cons

umpt

ion

of s

atur

ated

fatty

ac

ids.

The

€ 3

00 p

er to

nne

tax

wou

ld c

ome

into

effe

ct in

201

7, w

ith p

lann

ed s

ubse

quen

t ris

es to

€ 5

00 in

20

18, €

700

in 2

019

and

€ 90

0 in

202

0. T

he b

ill no

w a

wai

ts a

vot

e in

Fra

nce’

s N

atio

nal A

ssem

bly,

whi

ch,

back

in 2

013,

had

reje

cted

a p

ropo

sal t

o ta

x pa

lm o

il co

nsum

ptio

n (s

ee M

PPU

Dec

.’12)

. With

exp

ort

pric

es o

f pal

m o

il cu

rrent

ly b

elow

USD

700

per

tonn

e, th

e ne

wly

pro

pose

d ta

x le

vels

cou

ld m

ake

palm

oi

l unc

ompe

titiv

e an

d fo

ster

repl

acem

ents

with

che

aper

alte

rnat

ives

, say

mar

ket e

xper

ts. I

ndon

esia

and

M

alay

sia,

the

wor

ld’s

key

supp

liers

of p

alm

oil,

file

d co

mpl

aint

s ag

ains

t the

pro

pose

d le

gisl

atio

n, s

tatin

g th

at it

wou

ld b

e di

scrim

inat

ory,

disp

ropo

rtion

ate

and

harm

ful t

o th

eir p

alm

oil

indu

strie

s.

211

OTH

ER P

OLI

CIE

S –

Con

sum

ptio

n ta

xFr

ance

April

Palm

oil

The

draf

t Sen

ate

bill

prop

osin

g th

e in

trodu

ctio

n of

a s

urta

x on

impo

rted

crud

e pa

lm o

il (s

ee a

lso M

PPU

M

ar.’1

6) h

as b

een

endo

rsed

by

Fran

ce’s

Low

er H

ouse

. How

ever

, the

tax

has

been

sha

rply

redu

ced

com

pare

d to

the

initi

al p

ropo

sal a

nd n

ow w

ould

not

app

ly to

pal

m o

il th

at is

pro

duce

d in

a s

usta

inab

le

man

ner.

Und

er th

e re

vise

d pr

opos

al, t

he ta

x w

ould

be

intro

duce

d gr

adua

lly to

sm

ooth

en it

s im

pact

: it

wou

ld s

tart

at €

30

(USD

34)

per

tonn

e in

201

7 an

d au

gmen

t by

€ 20

(USD

23)

per

yea

r unt

il it

reac

hes

€ 90

(USD

102

) in

2020

. In

addi

tion

to c

rude

pal

m o

il, th

e ta

x w

ould

als

o ap

ply

to p

alm

kern

el a

nd c

opra

(c

ocon

ut) o

il us

ed a

s fo

od. L

egis

lato

rs d

id n

ot p

rovi

de a

defi

nitio

n fo

r su

stai

nabl

e fo

rms

of p

alm

oil

prod

uctio

n. T

he d

raft

bill,

whi

ch a

ttrac

ted

stro

ng c

ritic

ism

from

pal

m o

il pr

oduc

ing

coun

tries

, is

set t

o go

bac

k to

the

Upp

er H

ouse

for f

urth

er re

view

.

212

OTH

ER P

OLI

CIE

S –

Con

sum

ptio

n ta

xFr

ance

June

Palm

oil

Fran

ce’s

law

mak

ers e

vent

ually

dro

pped

pla

ns to

intro

duce

a su

rtax

on im

porte

d cr

ude

palm

oil d

estin

ed

for u

se in

food

pro

duct

s (s

ee a

lso M

PPU

Apr

.’16)

. Acc

ordi

ng to

pre

ss re

ports

, leg

al u

ncer

tain

ty a

roun

d th

e pr

opos

ed ta

x –

whi

ch c

once

rned

onl

y on

e ty

pe o

f veg

etab

le o

il an

d al

low

ed fo

r exe

mpt

ions

bas

ed

on v

ague

sus

tain

abilit

y cr

iteria

– le

d to

the

Parli

amen

t’s d

ecis

ion

to w

ithdr

aw th

e bi

ll.

213

OTH

ER P

OLI

CIE

S –

Labo

ur m

arke

tM

alay

sia

Febr

uary

Oil

palm

In

Mal

aysi

a, w

here

the

pla

ntat

ion

sect

or r

elie

s he

avily

on

fore

igne

rs a

s w

orkf

orce

, th

e go

vern

men

t ra

ised

the

levy

app

lied

to fo

reig

n w

orke

rs e

mpl

oyed

in p

lant

atio

ns fr

om R

M 5

90 (U

SD 1

45) t

o RM

640

(U

SD 1

57),

effec

tive

Febr

uary

201

6. U

sual

ly, t

he c

ost

of s

uch

levy

is b

orn

by t

he lo

cal p

lant

atio

ns

com

pani

es, w

hich

war

ned

that

thei

r 201

6 ea

rnin

gs c

ould

fall

by b

etw

een

3–8

perc

ent b

ecau

se o

f the

in

crea

se.

38 Oilcrops complex: Policy changes and industry measures - Annual compendium 2016

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

214

OTH

ER P

OLI

CIE

S –

Labo

ur m

arke

tM

alay

sia

Mar

chO

il pa

lm

Mal

aysi

a de

cide

d to

tem

pora

rily

halt

the

inta

ke o

f for

eign

wor

kers

pen

ding

a re

view

of t

he c

ount

ry’s

labo

ur n

eeds

, rep

orte

d a

stat

e ne

ws

agen

cy. M

eanw

hile

, the

gov

ernm

ent a

lso

put o

n ho

ld it

s pl

an to

ra

ise

the

levy

app

lied

on fo

reig

n w

orke

rs (s

ee M

PPU

Mar

.’16)

, afte

r bus

ines

ses

affec

ted

by th

e hi

gher

ch

arge

s op

pose

d th

e m

easu

re. O

ffici

als

from

the

palm

oil i

ndus

try (w

hich

relie

s he

avily

on

fore

ign

labo

ur

forc

e) s

tate

d th

at li

mite

d ac

cess

to fo

reig

n la

bour

is p

osin

g m

ajor

cha

lleng

es to

the

sect

or.

215

OTH

ER P

OLI

CIE

S –

Tran

spor

t in

frast

ruct

ure

Braz

ilFe

brua

rySo

ybea

nIn

depe

nden

t obs

erve

rs p

oint

ed o

ut th

at th

e on

-goi

ng e

xpan

sion

of B

razil

’s so

ybea

n an

d m

aize

exp

orts

w

as f

acilit

ated

by

rece

nt i

mpr

ovem

ents

in

the

coun

try’s

port

infra

stru

ctur

e. I

mpr

ovem

ents

mai

nly

conc

ern

the

so-c

alle

d ‘A

rco

Nor

te’ (

Nor

ther

n Ar

c), w

hich

com

pris

es ri

ver p

orts

on

the

Amaz

on a

nd s

ea

ports

on

the

coun

try’s

north

ern

Atla

ntic

coa

st (s

ee a

lso M

PPU

May

’14

& Se

p.’1

5). A

fter m

ajor

priv

ate

inve

stm

ents

add

ed c

apac

ity a

t sev

eral

rive

r ter

min

als,

bar

ge h

aul s

yste

ms

and

coas

tal p

orts

, shi

pmen

ts

via

the

north

ern

expo

rt co

rrido

r are

est

imat

ed to

hav

e ex

pand

ed b

y 50

per

cent

in 2

015,

sig

nific

antly

re

lievi

ng th

e bu

rden

on

high

ly c

onge

sted

sou

thbo

und

high

way

s an

d ov

ercr

owde

d po

rts a

long

Bra

zil’s

sout

hern

-eas

tern

and

sou

ther

n co

ast.

Repo

rtedl

y, sh

ippi

ng g

rain

s an

d oi

lsee

ds fr

om M

ato

Gro

sso

and

othe

r Cen

tre-W

est/N

orth

east

sta

tes

thro

ugh

the

Arco

Nor

te (r

athe

r tha

n th

roug

h th

e tra

ditio

nal s

outh

ern

rout

es) c

uts

trans

porta

tion

cost

s by

35–

45 p

erce

nt. M

arke

t ob

serv

ers

reck

on t

hat

ther

e is

roo

m fo

r Ar

co N

orte

exp

orts

to in

crea

se fu

rther

in 2

016,

pro

vide

d th

e fe

dera

l gov

ernm

ent m

anag

es to

com

plet

e a

num

ber o

f crit

ical

road

and

rail

links

. Thi

s co

ncer

ns in

par

ticul

ar h

ighw

ay B

R-16

3 co

nnec

ting

Mat

o G

ross

o to

two

Amaz

on b

arge

term

inal

s, M

iritit

uba

and

Sant

arem

, whe

re a

dditi

onal

cap

acity

is s

aid

to b

e al

read

y av

aila

ble.

In th

is re

gard

, ind

ustry

repr

esen

tativ

es e

xpre

ssed

con

cern

that

, und

er th

e co

untry

’s cu

rrent

eco

nom

ic c

risis

, pub

lic s

pend

ing

for t

rans

port

infra

stru

ctur

e co

uld

be s

ever

ely

cut,

whi

ch w

ould

sl

ow d

own

the

expa

nsio

n in

agr

icul

tura

l exp

orts

.

216

OTH

ER P

OLI

CIE

S –

Tran

spor

t in

frast

ruct

ure

Braz

ilJu

lySo

ybea

nIn

Bra

zil’s

Mat

o G

ross

o st

ate,

offi

cial

s de

em im

prov

ed t

rans

port

optio

ns v

ia t

he c

ount

ry’s

north

ern

expo

rt co

rrido

rs (t

he s

o-ca

lled

‘Arc

o N

orte

’) to

be

the

mai

n dr

ivin

g fo

rce

behi

nd th

e on

-goi

ng e

xpan

sion

of

soy

bean

pla

ntin

gs in

the

sta

te.

The

impr

ovem

ents

con

sist

of

road

upg

rade

s th

at p

rovi

de d

irect

ac

cess

to n

ew te

rmin

als

on th

e Am

azon

Riv

er a

nd to

sea

ports

alo

ng th

e no

rther

n At

lant

ic c

oast

. The

se

north

boun

d ro

utes

redu

ce th

e st

ate’

s ne

ed to

shi

p gr

ains

thro

ugh

the

high

ly c

onge

sted

sou

thbo

und

high

way

s to

dis

tant

por

ts o

n Br

azil’s

sou

thea

ster

n an

d so

uthe

rn c

oast

(se

e al

so M

PPU

Feb

.’16)

. Ac

cord

ing

to in

dust

ry e

stim

ates

, in

2016

, a re

cord

34

perc

ent o

f Mat

o G

ross

o’s

soyb

ean

ship

men

ts w

ill tra

nsit

thro

ugh

the

Arco

Nor

te, w

ith th

e re

mai

ning

66

perc

ent h

eadi

ng s

outh

. In

2014

, the

cor

resp

ondi

ng

shar

es w

ere,

resp

ectiv

ely,

18 a

nd 8

2 pe

rcen

t.

* 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 o

n-lin

e at

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 2016 39

Tabl

e 2.

In

dust

ry m

easu

res

and

initi

ativ

es re

port

ed in

201

6N

o.D

omai

nM

onth

Cou

ntry

Des

crip

tion

*

1IN

DUST

RY

STAN

DARD

S –

Sust

aina

ble

soy

Janu

ary

Glo

bal

Certi

ficat

ion:

The

Rou

nd T

able

on

Resp

onsib

le S

oy (R

TRS)

, one

of t

he tw

o le

adin

g in

tern

atio

nal b

odie

s sp

ecia

lized

in th

e ce

rtific

atio

n of

resp

onsib

le s

oybe

an p

rodu

ctio

n, re

porte

d a

furth

er in

crea

se in

pro

duct

ion

and

sale

s of

RTR

S-ce

rtifie

d so

y in

20

15. A

ccor

ding

to R

TRS,

(i) th

e nu

mbe

r of c

ertifi

ed h

ecta

res

and

prod

ucer

s in

crea

sed

by, r

espe

ctive

ly, 5

0 an

d 15

0 pe

rcen

t co

mpa

red

to 2

014;

(ii)

the

volu

me

of c

ertifi

ed p

rodu

ce ro

se b

y ab

out 6

0 pe

rcen

t, w

ith c

ertifi

catio

n st

ill he

avily

con

cent

rate

d in

Bra

zil a

nd A

rgen

tina;

and

(iii)

glob

al s

ales

of R

TRS-

certi

fied

soyb

eans

clim

bed

to 2

.3 m

illion

tonn

es –

incr

easin

g by

70

per

cent

yea

r-on-

year

(com

pare

d to

the

50 p

erce

nt ri

ses

obse

rved

in 2

014

and

2013

). Ho

wev

er, a

lmos

t 90

perc

ent o

f the

20

15 s

ales

hav

e be

en in

the

form

of t

rade

in c

redi

ts, m

eani

ng th

at th

e ac

tual

phy

sical

trad

e in

seg

rega

ted

and

fully

trac

eabl

e so

ybea

ns c

ontin

ues

to p

lay

a m

inor

role

; by

purc

hasin

g cr

edits

, buy

ers

only

supp

ort t

he a

dopt

ion

of s

usta

inab

le p

rodu

ctio

n pr

actic

es (s

ee a

lso M

PPU

June

’14

& Fe

b.’1

5).

2IN

DUST

RY

STAN

DARD

S –

Sust

aina

ble

soy

Janu

ary

Uni

ted

Stat

esTr

ade:

Th

e U

S so

ybea

n in

dust

ry re

porte

d th

at, i

n th

e 20

15/1

6 m

arke

ting

year

, soy

exp

orts

cer

tified

acc

ordi

ng to

the

US

Soy

Sust

aina

bilit

y As

sura

nce

Prot

ocol

(SSA

P) in

crea

sed

to a

reco

rd 2

milli

on to

nnes

, rep

rese

ntin

g ab

out 4

per

cent

of

tota

l US

expo

rts. L

aunc

hed

as a

stri

ctly

nat

iona

l pla

tform

in 2

013,

SSA

P as

sist

s th

e se

ctor

to d

ocum

ent s

usta

inab

le

perfo

rman

ce fo

r int

erna

tiona

l cus

tom

ers

(see

MPP

U S

ep.’1

3). T

he s

yste

m a

llow

s ex

porte

rs to

obt

ain

ship

men

t-spe

cific

ce

rtific

ates

, usi

ng a

mas

s ba

lanc

e ap

proa

ch.

3IN

DUST

RY

STAN

DARD

S –

Sust

aina

ble

soy

May

Braz

ilSo

y m

orat

oriu

m:

Initi

ally

laun

ched

in 2

006

for t

wo

year

s an

d re

new

ed a

nnua

lly s

ince

200

8, th

e vo

lunt

ary

mor

ator

ium

on

tradi

ng a

nd fi

nanc

ing

of s

oybe

ans

grow

n on

ille

gally

cle

ared

land

in th

e Am

azon

regi

on h

as b

een

rene

wed

inde

finite

ly.

The

deci

sion

was

tak

en b

y a

mul

ti-st

akeh

olde

r co

aliti

on t

hat

brin

gs t

oget

her

the

priv

ate

sect

or, c

ivil

soci

ety

grou

ps

and

the

Braz

ilian

gove

rnm

ent.

Repo

rtedl

y, th

e m

orat

oriu

m h

as p

rove

n eff

ectiv

e in

redu

cing

def

ores

tatio

n an

d en

ablin

g re

spon

sibl

e so

y pr

oduc

tion,

whi

le e

nsur

ing

full

com

plia

nce

with

nat

iona

l reg

ulat

ions

, not

ably

the

Braz

ilian

Fore

st C

ode

and

the

fede

ral m

onito

ring

of fa

rms

unde

r a ru

ral e

nviro

nmen

tal r

egis

tratio

n sy

stem

.

4IN

DUST

RY

STAN

DARD

S –

Sust

aina

ble

soy

May

Glo

bal

Sour

cing

pol

icy:

Fol

low

ing

othe

r firm

s ba

sed

in N

ordi

c co

untri

es, a

larg

e Sc

andi

navi

an m

eat p

roce

ssor

ple

dged

to u

se –

by

the

end

of 2

018

– on

ly re

spon

sibl

y so

urce

d so

ybea

ns, a

key

ingr

edie

nt in

ani

mal

feed

. The

com

pany

’s co

mm

itmen

t is

said

to re

flect

con

cern

s ov

er d

efor

esta

tion,

risi

ng g

reen

hous

e ga

s em

issi

ons,

dep

letio

n of

bio

dive

rsity

and

soi

l ero

sion

in

conv

entio

nal s

oybe

an p

rodu

ctio

n. T

o ac

hiev

e 10

0% re

spon

sibl

e so

urci

ng, t

he c

ompa

ny w

ill re

ly o

n in

depe

nden

t bod

ies

that

cer

tify

resp

onsi

ble

soy

prod

uctio

n, n

otab

ly t

he R

ound

Tab

le o

n Re

spon

sible

Soy

(RTR

S) a

nd P

roTe

rra (s

ee a

lso

MPP

U F

eb.’1

5).

5IN

DUST

RY

STAN

DARD

S –

Sust

aina

ble

soy

May

Glo

bal

Sour

cing

pol

icy:

The

Wor

ld W

ildlif

e Fu

nd c

alle

d on

com

pani

es in

the

soy

supp

ly c

hain

to b

e tra

nspa

rent

abo

ut th

eir u

se

of s

oy a

nd to

con

side

r sou

rcin

g so

y fro

m R

TRS

and

ProT

erra

cer

tified

pro

duce

rs. A

fter r

evie

win

g th

e so

urci

ng p

olic

ies

of s

elec

ted

Euro

pean

com

pani

es th

at b

uy a

nd u

se s

oy a

s an

imal

feed

in m

eat a

nd d

airy

pro

duct

ion,

WW

F st

ated

that

m

any

of th

em h

ave

limite

d kn

owle

dge

abou

t the

orig

in o

f the

ir su

pplie

s an

d ar

e no

t aw

are

of th

e im

porta

nce

of p

rote

ctin

g vu

lner

able

nat

ural

hab

itats

suc

h as

the

Amaz

on, C

erra

do a

nd C

haco

regi

ons

in S

outh

Am

eric

a. T

he a

dvoc

acy

grou

p al

so

poin

ted

out t

hat,

alth

ough

som

e so

ybea

n pr

oduc

ers

and

com

pani

es w

ere

inve

stin

g he

avily

in re

spon

sibl

e pr

oduc

tion

and

certi

ficat

ion,

the

mar

ket w

as n

ot s

uffici

ently

reco

gnizi

ng a

nd re

war

ding

thes

e eff

orts

(see

also

MPP

U F

eb.’1

6).

40 Oilcrops complex: Policy changes and industry measures - Annual compendium 2016

No.

Dom

ain

Mon

thC

ount

ryD

escr

iptio

n *

6IN

DUST

RY

STAN

DARD

S –

Su

stai

nabl

e oi

l pal

m

Janu

ary

Glo

bal

RSPO

: The

Rou

ndta

ble o

n Sus

tain

able

Pal

m O

il, th

e wor

ld’s

lead

ing b

ody f

or su

stai

nabl

e pal

m oi

l cer

tifica

tion,

has p

ublis

hed

a nu

mbe

r of i

mpa

ct in

dica

tors

for 2

015:

(i) l

ast y

ear,

certi

fied

sust

aina

ble

oil p

alm

are

a cl

imbe

d to

2.7

7 m

illion

hec

tare

s,

or a

bout

16

per

cent

of t

he w

orld

’s to

tal m

atur

e oi

l pal

m a

rea,

whi

ch re

pres

ents

a m

odes

t 5 p

erce

nt e

xpan

sion

from

201

4 (w

hen

area

cer

tified

exp

ande

d by

a m

uch

high

er ra

te o

f 33

perc

ent);

(ii) p

rodu

ctio

n of

RSP

O-c

ertifi

ed p

alm

oil h

as ri

sen

by

1 pe

rcen

t to

12.9

milli

on to

nnes

, or a

bout

21

perc

ent o

f glo

bal p

rodu

ctio

n; w

hile

the

num

ber o

f sm

allh

olde

rs p

artic

ipat

ing

in R

SPO

cer

tifica

tion

also

incr

ease

d, th

ey a

ccou

nted

for o

nly

10 p

erce

nt o

f tot

al c

ertifi

ed p

rodu

ctio

n; a

nd (i

ii) ac

tual

sal

es

of R

SPO

-cer

tified

pal

m o

il, th

e m

ost c

ritic

al fi

gure

, am

ount

ed to

6.2

milli

on to

nnes

in 2

015,

abo

ut 0

.8 m

illion

tonn

es

or 1

6 pe

rcen

t mor

e th

an in

201

4 –

a si

gnifi

cant

slo

wdo

wn

com

pare

d to

the

last

few

yea

rs. T

he a

mou

nt o

f act

ual s

ales

re

porte

d by

RSP

O s

ugge

sts

that

6.7

milli

on to

nnes

(i.e

. mor

e th

an h

alf o

f the

ava

ilabl

e ce

rtifie

d pr

oduc

t) di

d no

t find

a

buye

r and

pro

babl

y ha

d to

be

sold

as

conv

entio

nal o

il, w

ith n

o pr

ice

prem

ium

; fu

rther

mor

e, s

imila

r to

2014

, abo

ut

55 p

erce

nt o

f tot

al s

ales

con

cern

ed G

reen

Palm

cer

tifica

tes,

a ‘B

ook&

Cla

im’ m

echa

nism

that

con

tribu

tes

only

indi

rect

ly to

su

stai

nabl

e pr

oduc

tion,

as

it by

pass

es th

e ph

ysic

al s

uppl

y ch

ain,

exc

ludi

ng p

rodu

ct s

egre

gatio

n an

d tra

ceab

ility.

7IN

DUST

RY

STAN

DARD

S –

Su

stai

nabl

e oi

l pal

m

Febr

uary

Glo

bal

Cer

tifica

tion:

Gre

enPa

lm, t

he n

on-p

hysi

cal c

ertifi

cate

trad

ing

syst

em o

f RSP

O (R

ound

tabl

e on

Sus

tain

able

Pal

m O

il) th

at

supp

orts

sus

tain

able

form

s of

pal

m o

il pro

duct

ion,

is re

ady

to in

trodu

ce, i

n 20

16, c

ertifi

cate

trac

eabi

lity

back

to in

divi

dual

or

igin

atin

g ce

rtifie

d m

ills.

The

Book

&Cla

im s

yste

m,

whi

ch e

nabl

es c

usto

mer

s to

offs

et p

alm

pur

chas

es b

y bu

ying

ce

rtific

ates

for a

n eq

uiva

lent

vol

ume

of c

ertifi

ed p

rodu

ct, i

s sa

id to

be

the

first

non

-phy

sica

l sup

ply

chai

n to

impl

emen

t su

ch tr

acea

bilit

y sy

stem

-wid

e. T

he n

ew fe

atur

e m

eans

that

eve

ry b

uyer

of c

ertifi

cate

s w

ill kn

ow w

hich

cer

tified

pal

m

oil m

ill he

is s

uppo

rting

. Alle

gedl

y, th

e G

reen

Palm

sup

ply

chai

n m

eets

als

o th

e ne

eds

of s

mal

lhol

ders

and

inde

pend

ent

prod

ucer

s, w

ho h

ave

limite

d ac

cess

to o

vers

eas

dem

and

for p

hysi

cally

seg

rega

ted

supp

lies

of c

ertifi

ed p

alm

oil

but c

an

be s

uppo

rted

for t

heir

effor

ts th

roug

h ce

rtific

ate

tradi

ng.

8IN

DUST

RY

STAN

DARD

S –

Su

stai

nabl

e oi

l pal

m

Febr

uary

Glo

bal

RSPO

: Th

e Ro

undt

able

on

Sust

aina

ble

Palm

Oil

laun

ched

a n

ew v

olun

tary

add

-on

palm

oil

stan

dard

dub

bed

‘RSP

O-

Nex

t’, to

add

ress

con

cern

s th

at it

s ba

sic

stan

dard

doe

s no

t ade

quat

ely

atte

nd to

all

envi

ronm

enta

l and

soc

ial i

ssue

s.

Uns

atis

fied

with

RSP

O’s

core

sus

tain

abilit

y st

anda

rd, s

ever

al c

ompa

nies

ado

pted

thei

r ow

n st

ricte

r cor

pora

te s

tand

ards

ov

er th

e la

st tw

o ye

ars

(see

, for

exa

mpl

e, M

PPU

Dec

.’14

& M

ar./O

ct./N

ov.’1

5). R

epor

tedl

y, ‘R

SPO

-Nex

t’ w

as d

evel

oped

to

mee

t the

nee

ds o

f the

se c

ompa

nies

. Firm

s ap

plyi

ng fo

r the

new

cer

tifica

te n

eed

to fu

lfil a

rang

e of

mor

e de

man

ding

su

stai

nabi

lity

crite

ria th

an th

e co

re, m

anda

tory

sta

ndar

ds. I

n pa

rticu

lar,

they

nee

d to

(i) a

dher

e to

a m

ore

strin

gent

no-

defo

rest

atio

n po

licy,

incl

udin

g th

e ru

le th

at n

ew p

lant

atio

ns c

an o

nly

be e

stab

lishe

d on

are

as w

ith lo

w s

tock

s of

car

bon,

w

hich

ess

entia

lly b

ans

plan

ting

on p

eatla

nd;

(ii) m

onito

r an

d re

duce

GH

G e

mis

sion

s ac

ross

the

ir en

tire

oper

atio

n;

(iii) c

omm

it to

pro

mot

e w

orke

rs’ r

ight

s an

d to

enh

ance

sm

allh

olde

rs’ s

kills

; (iv

) ref

rain

from

usi

ng fi

re to

cle

ar la

nd a

nd

from

spr

ayin

g th

e to

xic

pest

icid

e Pa

raqu

at; (

v) p

rove

that

at l

east

60

perc

ent o

f the

ir pl

anta

tion

are

alre

ady

com

plia

nt w

ith

RSPO

’s co

re s

tand

ard

and

com

mit

to ro

lling

out t

he s

trict

er s

tand

ard

acro

ss a

ll of t

heir

esta

tes

– th

ough

no

timel

ines

are

se

t on

whe

n fu

ll com

plia

nce

has

to b

e ac

hiev

ed; (

vi) e

nsur

e tra

nspa

renc

y an

d du

e di

ligen

ce in

sou

rcin

g fro

m in

depe

nden

t su

pplie

rs; a

nd (v

ii) en

sure

trac

eabi

lity

of a

ll cer

tified

pal

m o

il bac

k to

the

plan

tatio

n w

here

it w

as p

rodu

ced.

It is

impo

rtant

to

not

e th

at th

e ne

w s

tand

ard

will

not e

stab

lish

a se

para

te p

hysi

cal s

uppl

y ch

ain;

rath

er, b

uyer

s pa

rtici

pate

by

purc

hasi

ng

RSPO

-Nex

t cre

dits

from

ver

ified

gro

wer

s. S

uch

cred

its, w

hich

are

like

ly to

be

avai

labl

e fro

m th

e th

ird q

uarte

r of 2

016,

w

ill on

ly b

e re

leas

ed t

o cu

stom

ers

that

are

alre

ady

buyi

ng e

xclu

sive

ly c

ertifi

ed p

alm

oil

thro

ugh

esta

blis

hed

supp

ly

chai

n sy

stem

s. R

SPO

’s ne

w in

itiat

ive

has

also

met

crit

icis

m. A

ccor

ding

to s

ome

obse

rver

s, th

e la

unch

ing

of s

trong

er

volu

ntar

y st

anda

rds

indi

cate

s th

at th

e cu

rrent

man

dato

ry s

tand

ards

are

inad

equa

te, w

hich

sug

gest

s th

at th

ey o

ught

to

be to

ughe

ned

acro

ss th

e bo

ard.

Mor

eove

r, th

e fa

ct th

at c

ompa

nies

can

set

thei

r ow

n tim

elin

es fo

r com

plia

nce

as w

ell

as R

SPO

’s de

finiti

on o

f ‘no

-def

ores

tatio

n’ h

ave

been

crit

icize

d. H

owev

er, o

ther

s w

elco

med

the

new

sch

eme

as a

sig

n th

at th

e vo

lunt

ary

invo

lvem

ent o

f mor

e pr

ogre

ssiv

e co

mpa

nies

cou

ld e

vent

ually

lead

to b

road

er c

hang

e in

the

sect

or.

Mea

nwhi

le, i

ndus

try re

pres

enta

tives

reite

rate

d th

at th

e pr

ice

prem

ium

for c

ertifi

ed s

usta

inab

le p

alm

oil

is n

ot s

uffici

ently

at

tract

ive

and

that

wea

k de

man

d fo

r cer

tified

pro

duce

is a

maj

or s

ourc

e of

con

cern

.

Oilcrops complex: Policy changes and industry measures - Annual compendium 2016 41

No.

Dom

ain

Mon

thC

ount

ryD

escr

iptio

n *

9IN

DUST

RY

STAN

DARD

S –

Su

stai

nabl

e oi

l pal

m

Febr

uary

Indo

nesi

aC

ertifi

catio

n:

A re

cent

ly re

leas

ed jo

int s

tudy

bet

wee

n IS

PO, I

ndon

esia

’s go

vern

men

t-bac

ked

certi

ficat

ion

prog

ram

me,

an

d th

e gl

obal

, ind

ustry

-led

RSPO

com

pare

s th

e tw

o ce

rtific

atio

n sc

hem

es a

nd e

xam

ines

how

they

cou

ld c

ompl

emen

t ea

ch o

ther

(see

also

MPP

U D

ec.’1

3 &

May

’14)

. ISP

O’s

focu

s is

on

enfo

rcin

g co

mpl

ianc

e of

pla

ntat

ions

with

exi

stin

g ru

les

and

regu

latio

ns o

f var

ious

min

istri

es, a

genc

ies

and

leve

ls o

f gov

ernm

ent,

ther

eby

cont

ribut

ing

to re

duce

d fo

rest

cov

erag

e lo

sses

and

low

er G

HG

em

issi

ons

from

land

use

cha

nge.

Rep

orte

dly,

certi

ficat

ion

effor

ts a

re im

paire

d by

sev

eral

fact

ors,

in

par

ticul

ar th

e ci

rcum

stan

ce th

at s

mal

l and

med

ium

-size

d gr

ower

s ac

coun

t for

40

perc

ent o

f Ind

ones

ia’s

tota

l pal

m o

il ou

tput

. Mai

n di

ffere

nces

iden

tified

bet

wee

n IS

PO a

nd R

SPO

rela

te to

(i) t

he p

rote

ctio

n of

hig

h co

nser

vatio

n va

lue

fore

sts,

(ii)

pla

ntat

ion

land

ow

ners

hip

proc

edur

es, i

nclu

ding

the

prin

cipl

e of

free

prio

r and

info

rmed

con

sent

, (iii)

pro

cedu

res

for

the

deve

lopm

ent o

f new

pla

ntat

ions

, and

(iv)

inde

pend

ent o

vers

ight

of t

he a

udit

and

certi

ficat

ion

proc

ess.

Impl

emen

ting

sust

aina

bilit

y cer

tifica

tion

thro

ugho

ut In

done

sia’

s exp

ansi

ve p

alm

oil s

uppl

y cha

in is

said

to re

quire

incr

ease

d an

d eff

ectiv

e co

llabo

ratio

n be

twee

n al

l act

ors,

incl

udin

g be

twee

n th

e go

vern

men

t and

inte

rnat

iona

l mar

ket p

artic

ipan

ts. C

olla

bora

tion

betw

een

ISPO

and

RSP

O c

ould

hel

p st

ream

line

Indo

nesi

a’s

palm

oil

certi

ficat

ion

proc

ess.

10IN

DUST

RY

STAN

DARD

S –

Su

stai

nabl

e oi

l pal

m

Febr

uary

Indo

nesi

aSo

urci

ng p

olic

y: O

ne o

f Ind

ones

ia’s

lead

ing

oil p

alm

bus

ines

ses,

Gol

den

Agri-

Reso

urce

s Lt

d, in

form

ed th

at it

is a

ble

to tr

ace

its e

ntire

ann

ual s

uppl

y of

ove

r 7 m

illion

tonn

es o

f pal

m o

il ba

ck to

489

indi

vidua

l mills

. The

com

pany

, whi

ch, i

n ad

ditio

n to

pr

oduc

ing

on in

its

own

right

, also

buy

s pa

lm o

il fro

m in

depe

nden

t mills

, cla

ims

that

trac

ing

all i

ts p

rodu

ct b

ack

to s

ourc

e al

low

s it

to m

ore

effec

tivel

y en

gage

with

inde

pend

ent s

uppl

iers

to im

prov

e th

eir o

pera

tions

in e

nviro

nmen

tal a

nd s

ocia

l ter

ms.

11IN

DUST

RY

STAN

DARD

S –

Su

stai

nabl

e oi

l pal

m

Mar

chG

loba

lTh

ird p

arty

pre

ssur

e:

Acco

rdin

g to

mar

ket o

bser

vers

, int

erna

tiona

l ban

ks a

re p

layin

g an

incr

easin

gly

impo

rtant

role

in

influ

enci

ng c

ompa

nies

to

adop

t su

stai

nabl

e pa

lm o

il pr

oduc

tion

prac

tices

. Rep

orte

dly,

the

num

ber

of b

anks

tha

t –

in

an e

ffort

to im

prov

e th

eir e

nviro

nmen

tal c

rede

ntia

ls –

are

requ

estin

g pr

oduc

ers

to a

pply

stric

t env

ironm

enta

l and

soc

ial

stan

dard

s in

exc

hang

e fo

r rec

eivin

g fin

ance

is o

n th

e ris

e. A

ppar

ently

, suc

h re

ques

ts e

spec

ially

con

cern

sm

alle

r com

pani

es,

as m

any

larg

e pr

oduc

ers

are

alre

ady

in th

e pr

oces

s of

ado

ptin

g m

ore

sust

aina

ble

prac

tices

. A n

umbe

r of

inte

rnat

iona

l fin

anci

al in

stitu

tions

hav

e jo

ined

the

Roun

dtab

le o

n Su

stai

nabl

e Pa

lm O

il (R

SPO

), th

e in

dust

ry’s

lead

ing

certi

ficat

ion

body

, as

king

thei

r clie

nts

to d

o th

e sa

me

and

to a

bide

by

RSPO

’s st

anda

rds.

Also

sov

erei

gn w

ealth

fund

s ar

e en

cour

agin

g fir

ms

to im

prov

e th

eir e

nviro

nmen

tal r

ecor

d by

set

ting

high

er s

tand

ards

for i

nves

tmen

t. Re

cent

ly, a

larg

e No

rweg

ian

pens

ion

fund

re

porte

d di

vest

men

ts fr

om p

alm

oil c

ompa

nies

that

wer

e lin

ked

to d

efor

esta

tion

and

low

env

ironm

enta

l saf

egua

rds.

12IN

DUST

RY

STAN

DARD

S –

Su

stai

nabl

e oi

l pal

m

Mar

chG

loba

lC

ertifi

catio

n: T

he P

alm

Oil I

nnov

atio

n G

roup

(PO

IG),

an in

tern

atio

nal c

olle

ctiv

e of

pal

m o

il gro

wer

s, N

GO

s an

d co

nsum

er

good

firm

s, re

leas

ed a

new

sta

ndar

d fo

r sus

tain

ably

pro

duce

d pa

lm o

il (se

e al

so M

PPU

Jun

e &

Dec.

’14)

. Rep

orte

dly,

the

new

nor

m is

stri

cter

than

bot

h, R

SPO

’s st

anda

rd s

et o

f req

uire

men

ts a

nd th

e re

cent

ly la

unch

ed, v

olun

tary

‘RSP

O-N

ext’

crite

ria (s

ee M

PPU

Mar

.’16)

. The

new

PO

IG s

tand

ard

addr

esse

s is

sues

suc

h as

the

dest

ruct

ion

of h

igh

carb

on s

tock

fo

rest

s, th

e de

velo

pmen

t of p

eatla

nds,

the

use

of to

xic

pest

icid

es, t

he e

xplo

itatio

n of

loca

l com

mun

ities

, and

the

viol

atio

n of

hum

an a

nd la

bour

righ

ts. I

n pa

rticu

lar,

POIG

cla

ims

to u

se a

stri

ct m

etho

dolo

gy to

dis

tingu

ish

betw

een

fore

sts

that

ha

ve to

be

left

unto

uche

d an

d la

nd th

at c

an b

e cl

eare

d. P

OIG

mem

ber c

ompa

nies

nee

d to

und

ergo

a th

ird-p

arty

aud

it an

d ar

e re

quire

d to

regu

larly

pub

lish

sust

aina

bilit

y re

ports

.13

INDU

STRY

ST

ANDA

RDS

–

Sust

aina

ble

oil p

alm

April

Glo

bal

RSPO

: In

Apr

il 20

16, t

he R

ound

tabl

e on

Sus

tain

able

Pal

m O

il (R

SPO

) – th

e w

orld

’s le

adin

g, in

dust

ry-b

acke

d st

anda

rd

setti

ng b

ody

for p

alm

oil –

info

rmed

that

it h

ad s

uspe

nded

one

of i

ts m

embe

rs fr

om c

ertifi

catio

n fo

llow

ing

non-

com

plia

nce

with

sta

ndar

ds m

eant

to

prev

ent

rain

fore

sts

dest

ruct

ion,

pea

tland

con

vers

ion

and

soci

al c

onfli

cts.

The

sus

pens

ion

prev

ents

the

conc

erne

d m

embe

r – w

hich

is o

ne o

f sev

en c

ompa

nies

that

dom

inat

e gl

obal

trad

e in

pal

m o

il – fr

om s

ellin

g pa

lm o

il (p

rodu

ced

sinc

e th

e su

spen

sion

) as

certi

fied

sust

aina

ble.

In th

e w

ake

of th

e su

spen

sion

, sev

eral

cus

tom

ers

of

the

susp

ende

d co

mpa

ny, i

nclu

ding

Uni

leve

r, Ke

llogg

, Mar

s an

d N

estlé

, inf

orm

ed th

at th

ey w

ere

dise

ngag

ing

from

trad

ing

with

the

susp

ende

d fir

m s

o as

to c

ompl

y w

ith th

eir o

wn

corp

orat

e po

licie

s an

d co

mm

itmen

ts. T

he b

uyer

s’ re

actio

n sh

ows

how

com

mer

cial

ly s

ensi

tive

palm

oil

proc

urem

ent

and

trace

abilit

y ha

ve b

ecom

e. T

he s

uspe

nded

com

pany

ass

ured

th

at it

was

com

mitt

ed to

add

ress

the

issu

es ra

ised

. It s

ubm

itted

an

actio

n pl

an fo

r RSP

O re

-ent

ry, d

etai

ling

corre

ctiv

e ac

tions

take

n to

revi

ew a

nd e

nhan

ce th

e co

mpa

ny’s

sust

aina

bilit

y pr

actic

es. I

n an

othe

r ins

tanc

e, in

May

201

6, a

larg

e pa

lm o

il gr

ower

vol

unta

rily

requ

este

d th

e w

ithdr

awal

of s

usta

inab

ility

certi

ficat

es g

rant

ed b

y RS

PO fr

om 5

8 of

its

palm

oi

l pro

cess

ing

mills

. The

com

pany

sai

d it

fore

saw

sus

tain

abilit

y is

sues

in it

s su

pply

cha

in a

nd th

eref

ore

wis

hed

to re

view

ce

rtain

pol

icie

s an

d m

ake

som

e st

ruct

ural

cha

nges

in it

s ce

rtific

atio

n ap

proa

ch. T

he c

ompa

ny s

ubm

itted

a ti

me-

boun

d ac

tion

plan

on

how

to a

chie

ve fu

ll co

mpl

ianc

e w

ith R

SPO

sta

ndar

ds a

t all

its p

lant

atio

ns a

nd m

ills.

42 Oilcrops complex: Policy changes and industry measures - Annual compendium 2016

No.

Dom

ain

Mon

thC

ount

ryD

escr

iptio

n *

14IN

DUST

RY

STAN

DARD

S –

Su

stai

nabl

e oi

l pal

m

May

Glo

bal

Com

pany

initi

ativ

es:

Afte

r com

mitt

ing

to d

elin

king

pal

m o

il pr

oduc

tion

from

def

ores

tatio

n an

d to

map

ping

its

supp

ly

chai

n to

the

mill

leve

l, G

olde

n Ag

ri-Re

sour

ces –

one

of I

ndon

esia

’s le

adin

g pa

lm o

il pro

duce

rs –

ple

dged

to a

chie

ve 1

00%

su

pply

trac

eabi

lity

up to

the

plan

tatio

n le

vel.

For

the

mills

ow

ned

dire

ctly

by

the

com

pany

, tra

ceab

ility

to p

lant

atio

ns

wou

ld b

e ac

hiev

ed b

y 20

17, w

hile

trac

eabi

lity

for i

ndep

ende

nt th

ird-p

arty

mills

that

sup

ply

the

com

pany

is to

be

achi

eved

by

202

0. T

he la

tter t

arge

t is

said

to re

quire

eng

agem

ent w

ith h

undr

eds

of in

divi

dual

pla

ntat

ion

man

ager

s, in

term

edia

ries

and

smal

lhol

der f

arm

ers.

On

the

sam

e to

pic,

Wilm

ar, t

he w

orld

’s la

rges

t pal

m o

il pr

oces

sor a

nd tr

ader

, rec

ently

repo

rted

sign

ifica

nt p

rogr

ess

in m

appi

ng it

s su

pply

cha

in, i

nclu

ding

its

third

-par

ty s

uppl

iers

. How

ever

, the

com

pany

ack

now

ledg

ed

that

ach

ievi

ng 1

00%

trac

eabi

lity

requ

ired

mor

e tim

e th

an o

rigin

ally

pla

nned

due

to th

e co

mpl

exiti

es o

f its

sup

ply

netw

ork.

Th

e co

mpa

ny a

lso

reco

gnize

d th

at th

e de

velo

pmen

t of c

lear

mea

ns to

mea

sure

pro

gres

s in

redu

cing

act

ual d

efor

esta

tion

pose

d m

ultip

le c

halle

nges

.

15IN

DUST

RY

STAN

DARD

S –

Su

stai

nabl

e oi

l pal

m

May

Glo

bal

Civ

il so

ciet

y gr

oup:

G

reen

peac

e In

tern

atio

nal i

nfor

med

that

bas

ed o

n its

revi

ew o

f glo

bal c

onsu

mer

goo

d fir

ms

that

pl

edge

d to

set

up

defo

rest

atio

n-fre

e pa

lm o

il su

pply

cha

ins

none

of t

he c

ompa

nies

sur

veye

d w

as a

ble

to c

onfir

m th

at

thei

r sup

ply

chai

n w

as fr

ee o

f def

ores

tatio

n, n

or c

ould

the

com

pani

es d

eter

min

e ho

w m

uch

of th

eir p

alm

oil

orig

inat

ed

from

sup

plie

rs th

at c

ompl

y w

ith th

eir o

wn

sour

cing

sta

ndar

ds. A

lso,

mos

t com

pani

es h

ad y

et to

obt

ain

inde

pend

ent t

hird

-pa

rty v

erifi

catio

n to

dem

onst

rate

that

thei

r pal

m o

il is

pro

duce

d in

com

plia

nce

with

thei

r pol

icie

s.

16IN

DUST

RY

STAN

DARD

S –

Su

stai

nabl

e oi

l pal

m

May

Indo

nesi

aC

ivil

soci

ety

grou

ps: I

n M

arch

201

6, G

reen

peac

e In

done

sia la

unch

ed a

map

ping

tool

(usi

ng te

chno

logy

dev

elop

ed b

y G

loba

l For

est W

atch

) tha

t allo

ws

the

publ

ic to

mon

itor d

efor

esta

tion

and

fires

in n

ear-r

eal t

ime,

as

wel

l as

to s

ee w

ho

cont

rols

the

land

whe

re th

e fir

es a

re li

ghte

d.

17IN

DUST

RY

STAN

DARD

S –

Su

stai

nabl

e oi

l pal

m

June

Glo

bal

Trac

eabi

lity:

RSP

O, t

he in

dust

ry-le

d st

anda

rd s

ettin

g bo

dy fo

r pal

m o

il, h

as la

unch

ed a

new

trac

eabi

lity

syst

em (‘

eTra

ce’)

that

allo

ws

trade

rs, m

anuf

actu

rers

and

reta

ilers

to tr

ace

back

to m

ills a

ll pal

m o

il pro

cure

d th

roug

h ph

ysic

al tr

ade

syst

ems

– i.e

. RSP

O’s

segr

egat

ed a

nd m

ass

bala

nce

supp

ly c

hain

s. T

race

abilit

y w

ill, h

owev

er, n

ot a

pply

to p

alm

oil

trade

d vi

a RS

PO’s

‘Boo

k&C

laim

’ mec

hani

sm, w

hich

by-

pass

es th

e ph

ysic

al s

uppl

y ch

ain

and,

in 2

015,

acc

ount

ed fo

r abo

ut h

alf o

f to

tal s

ales

of R

SPO

-cer

tified

pal

m o

il (s

ee M

PPU

Feb

.’16)

.

18IN

DUST

RY

STAN

DARD

S –

Su

stai

nabl

e oi

l pal

m

June

Glo

bal

Sour

cing

pol

icy:

Dur

ing

rece

nt w

eeks

, a n

umbe

r of g

loba

l tra

de fi

rms

com

mitt

ed to

join

con

sum

er g

ood

com

pani

es th

at

deci

ded

to c

ease

trad

ing

with

a p

alm

oil

supp

lier w

hose

sus

tain

abilit

y ce

rtific

ates

had

bee

n su

spen

ded

by th

e RS

PO in

M

arch

201

6 (s

ee M

PPU

Jun

e’16

).

19IN

DUST

RY

STAN

DARD

S –

Su

stai

nabl

e oi

l pal

m

July

Glo

bal

RSPO

: In

Jul

y 20

16, R

SPO

, the

indu

stry

-led

stan

dard

set

ting

body

for p

alm

oil,

hel

d a

mul

ti-st

akeh

olde

r for

um in

Chi

na

to p

rom

ote

the

trade

and

con

sum

ptio

n of

cer

tified

sus

tain

able

pal

m o

il in

the

coun

try. C

onsi

derin

g th

at C

hina

is th

e w

orld

’s se

cond

larg

est i

mpo

rter

and

third

big

gest

con

sum

er o

f pal

m o

il, a

n in

crea

se in

Chi

nese

dem

and

for

certi

fied

prod

uce

coul

d pr

ovid

e fre

sh im

petu

s fo

r glo

bal t

rade

in a

n pr

oduc

tion

of c

ertifi

ed s

usta

inab

le p

alm

oil.

In re

cent

yea

rs,

RSPO

mem

bers

sta

rted

payi

ng in

crea

sed

atte

ntio

n to

dev

elop

ing

coun

try m

arke

ts, n

otab

ly in

Asi

a, w

here

edi

ble

oil

cons

umpt

ion

is g

row

ing

at a

ste

ady

pace

– w

hils

t cer

tified

sus

tain

able

pal

m o

il ac

coun

ts fo

r an

only

sm

all p

art o

f the

m

arke

t (se

e al

so M

PPU

May

& S

ep.’1

2). F

or C

hina

, RSP

O’s

2020

targ

et fo

r the

sha

re o

f cer

tified

sus

tain

able

pro

duce

in

tota

l pal

m o

il up

take

has

bee

n se

t at 1

0 pe

rcen

t (se

e M

PPU

Jul

y’15

).

Oilcrops complex: Policy changes and industry measures - Annual compendium 2016 43

No.

Dom

ain

Mon

thC

ount

ryD

escr

iptio

n *

20IN

DUST

RY

STAN

DARD

S –

Su

stai

nabl

e oi

l pal

m

July

Indo

nesi

aIP

OP:

The

Indo

nesia

n Pa

lm O

il Pl

edge

(IPO

P), a

priv

ate

initi

ativ

e la

unch

ed b

y le

adin

g pa

lm o

il pr

oduc

ing

and

tradi

ng

com

pani

es in

201

4 to

pro

mot

e su

stai

nabl

e pr

oduc

tion

and

join

tly e

stab

lish

wha

t lan

d co

uld

be c

lear

ed to

dev

elop

new

oi

l pal

m p

lant

atio

ns,

has

been

dis

solv

ed.

Acco

rdin

g to

the

IPO

P si

gnat

orie

s, t

he in

itiat

ive’

s or

igin

al p

urpo

ses

have

be

en fu

lfille

d by

rece

nt m

easu

res

take

n by

the

gove

rnm

ent –

not

ably

the

mor

ator

ium

on

peat

land

dev

elop

men

t, th

e cr

eatio

n of

a P

eat R

esto

ratio

n Ag

ency

, the

laun

chin

g of

a n

atio

nal s

tand

ard

for s

usta

inab

le p

alm

oil

(ISPO

), an

d th

e ne

w

mor

ator

ium

on

oil p

alm

exp

ansi

on li

cens

es. F

orm

er IP

OP

mem

bers

com

mitt

ed to

con

tinue

thei

r sus

tain

abilit

y po

licie

s in

depe

nden

tly a

nd p

ledg

ed to

sup

port

the

gove

rnm

ent’s

effo

rts to

stre

ngth

en a

nd im

prov

e IS

PO. S

ome

envi

ronm

enta

l gr

oups

com

men

ted

that

the

dism

antli

ng o

f IPO

P co

uld

incr

ease

the

risk

of h

aze

and

fore

st fi

res

in S

outh

east

Asi

a, g

iven

th

at IS

PO s

tand

ards

tend

to b

e le

ss s

trict

than

thos

e ap

plie

d un

der I

POP,

not

ably

with

resp

ect t

o la

nd c

lear

ing

rule

s.

21IN

DUST

RY

STAN

DARD

S –

Su

stai

nabl

e oi

l pal

m

Augu

stG

loba

lRS

PO:

The

Roun

dtab

le o

n Su

stai

nabl

e Pa

lm O

il (R

SPO

) end

ed th

e su

spen

sion

from

cer

tifica

tion

that

it h

ad im

pose

d la

st A

pril

on o

ne o

f its

mem

bers

fol

low

ing

non-

com

plia

nce

with

its

stan

dard

s (s

ee M

PPU

Jun

e’16

). Re

porte

dly,

the

conc

erne

d co

mpa

ny s

atis

fied

the

cond

ition

s se

t for

read

mis

sion

. It i

s no

w e

xpec

ted

to s

ubm

it qu

arte

rly p

rogr

ess

repo

rts

and

will

be s

ubje

cted

to in

depe

nden

t gro

und

verifi

catio

n af

ter 1

2 m

onth

s. S

ome

envi

ronm

enta

l gro

ups

criti

cize

d RS

PO

for r

eadm

ittin

g th

e co

mpa

ny b

efor

e it

deliv

ered

last

ing

chan

ge o

n th

e gr

ound

. If g

loba

l buy

ers

who

had

dis

enga

ged

from

tra

ding

with

the

susp

ende

d m

embe

r will

resu

me

purc

hase

s fro

m th

e co

mpa

ny re

mai

ns to

be

seen

.

22IN

DUST

RY

STAN

DARD

S –

Su

stai

nabl

e oi

l pal

m

Augu

stG

loba

lC

ertifi

catio

n:

RSPO

con

firm

ed t

hat

afte

r De

cem

ber

2016

it w

ill no

long

er e

ndor

se G

reen

Palm

, the

cer

tifica

te-b

ased

bo

ok &

cla

im s

yste

m t

hat

curre

ntly

acc

ount

s fo

r ab

out

half

of g

loba

l tra

de in

RSP

O-c

ertifi

ed p

alm

/pal

m k

erne

l oil.

In

stea

d, c

usto

mer

s w

ill be

abl

e to

trad

e ce

rtifie

d vo

lum

es v

ia R

SPO

’s re

cent

ly la

unch

ed ‘e

Trac

e’ p

latfo

rm, a

n al

tern

ativ

e Bo

ok&C

laim

sys

tem

tha

t gu

aran

tees

cer

tifica

te t

race

abilit

y ba

ck t

o in

divi

dual

orig

inat

ing

certi

fied

mills

and

cru

sher

s (s

ee a

lso M

PPU

Mar

./Jul

y’16

). C

redi

ts t

rade

d vi

a ‘e

Trac

e’ w

ill be

sub

ject

ed t

o re

gula

r RS

PO a

udits

. As

any

oth

er

Book

&Cla

im s

yste

m, a

lso

the

new

mec

hani

sm b

ypas

ses

the

phys

ical

sup

ply

chai

n. H

owev

er, t

he m

odifi

ed s

chem

e w

ill al

low

cus

tom

ers

to k

now

whi

ch c

ertifi

ed p

alm

oil

mill

they

are

sup

porti

ng.

23IN

DUST

RY

STAN

DARD

S –

Su

stai

nabl

e oi

l pal

m

Augu

stIn

done

sia

Smal

lhol

der c

ertifi

catio

n: R

SPO

repo

rted

that

a la

rge

grou

p of

sm

all o

il pa

lm g

row

ers

in S

outh

Sum

atra

, Ind

ones

ia, h

as

achi

eved

RSP

O c

ertifi

catio

n th

anks

to th

e su

ppor

t of a

larg

e pl

anta

tion

com

pany

and

to fin

anci

al a

ssist

ance

from

the

RSPO

’s Sm

allh

olde

r Sup

port

Fund

. Mad

e up

of s

even

villa

ge le

vel c

oope

rativ

es, t

he g

roup

cou

nts

mor

e th

an 2

700

inde

pend

ent

smal

lhol

ders

cul

tivat

ing

5 50

0 he

ctar

es.

The

grou

p pl

ans

to s

ell i

ts c

ertifi

ed p

rodu

ct t

hrou

gh R

SPO

’s m

ass

bala

nce

mec

hani

sm, w

hich

invo

lves

a ph

ysic

al s

uppl

y ch

ain.

Typ

ical

ly, s

mal

lhol

ders

– w

ho a

ccou

nt fo

r abo

ut 4

0 pe

rcen

t of g

loba

l pa

lm o

il out

put –

lack

the

mea

ns to

com

ply

with

com

plex

inte

rnat

iona

l sus

tain

abilit

y st

anda

rds.

Inde

ed, in

201

5, s

mal

lhol

der

prod

uctio

n ac

coun

ted

for n

o m

ore

than

10

perc

ent o

f glo

bal c

ertifi

catio

n (in

vol

ume

term

s). G

ener

ally,

cer

tifica

tion

allo

ws

inde

pend

ent s

mal

lhol

ders

to ra

ise th

eir y

ield

s an

d ga

in a

cces

s to

inte

rnat

iona

l mar

ket (

ther

eby

impr

ovin

g th

eir p

rofit

s), w

hile

at

the

sam

e tim

e pr

otec

ting

the

envir

onm

ent t

hrou

gh th

e ad

optio

n of

goo

d ag

ricul

tura

l pra

ctic

es.

24IN

DUST

RY

STAN

DARD

S –

Su

stai

nabl

e oi

l pal

m

Augu

stIn

done

sia

Sour

cing

pol

icy:

In

Wes

t Ka

liman

tan,

Ind

ones

ia,

two

hom

e ca

re m

ultin

atio

nals

, H

enke

l an

d BA

SF,

ente

red

into

pa

rtner

ship

s w

ith N

GO

s to

sup

port

smal

lhol

der p

alm

oil p

rodu

ctio

n. A

s m

ajor

buy

ers

of p

alm

and

pal

m k

erne

l oil,

the

two

com

pani

es a

re c

omm

itted

to b

ack

the

esta

blis

hmen

t of s

usta

inab

le s

uppl

y ch

ains

. Und

er th

e pr

ojec

t, sm

allh

olde

rs w

ill be

trai

ned

in s

usta

inab

le fa

rmin

g m

etho

ds w

ith th

e ob

ject

ive

to ra

ise

palm

frui

t yie

lds

whi

le m

akin

g pr

oduc

ers

elig

ible

for

certi

ficat

ion

acco

rdin

g to

the

crite

ria o

f RSP

O.

44 Oilcrops complex: Policy changes and industry measures - Annual compendium 2016

No.

Dom

ain

Mon

thC

ount

ryD

escr

iptio

n *

25IN

DUST

RY

STAN

DARD

S –

Su

stai

nabl

e oi

l pal

m

Augu

stN

ew Z

eala

ndSo

urci

ng p

olic

y (p

alm

kern

el m

eal):

In

New

Zea

land

, a s

tate

-ow

ned

agrib

usin

ess

firm

pla

ns to

sto

p us

ing

palm

ker

nel

mea

l as

a fe

ed s

uppl

emen

t in

its d

airy

farm

s. A

llege

dly,

the

deci

sion

to re

plac

e pa

lm k

erne

l pro

duct

s w

ith lo

cally

gro

wn

alte

rnat

ives

refl

ects

the

com

pany

’s co

ncer

n w

ith p

rodu

cing

food

in a

res

pons

ible

and

env

ironm

enta

l frie

ndly

way

as

wel

l as

effor

ts to

ant

icip

ate

shift

ing

cons

umer

pre

fere

nces

. Rep

orte

dly,

the

use

of p

alm

ker

nel m

eal h

as c

ome

unde

r sc

rutin

y af

ter e

nviro

nmen

tal g

roup

s lin

ked

grow

th in

Sou

thea

st A

sia’

s pa

lm in

dust

ry to

uns

usta

inab

le fa

rmin

g pr

actic

es.

Mea

nwhi

le, a

larg

e m

ultin

atio

nal d

airy

co-

oper

ativ

e in

New

Zea

land

sai

d th

at it

had

no

imm

edia

te p

lans

to s

top

usin

g pa

lm k

erne

l mea

l, ad

ding

that

all

palm

pro

duct

s us

ed b

y its

farm

ers

are

resp

onsi

bly

sour

ced,

and

that

, by

2018

, all

its

palm

pro

duct

sup

plie

s w

ill be

trac

eabl

e to

pla

ntat

ion

leve

l. La

st y

ear,

the

co-o

pera

tive

issu

ed a

gui

delin

e re

com

men

ding

its

farm

ers

to fe

ed th

eir h

erds

a m

axim

um o

f 3 k

g of

pal

m k

erne

l mea

l per

day

, citi

ng th

e ne

ed to

pro

tect

the

prem

ium

co

mm

ande

d by

pas

ture

-bas

ed d

airy

pro

duct

s. N

ew Z

eala

nd is

the

wor

ld’s

larg

est s

ingl

e im

porte

r of p

alm

ker

nel m

eal.

26IN

DUST

RY

STAN

DARD

S –

Su

stai

nabl

e oi

l pal

m

Oct

ober

Gab

onPr

oduc

tion

& ce

rtific

atio

n: A

sou

thea

st A

sian

agr

i-bus

ines

s fir

m re

porte

d ad

vanc

emen

ts in

its

Afric

an p

alm

oil o

pera

tions

. Ac

cord

ing

to th

e co

mpa

ny, i

ts n

ew p

alm

pla

ntat

ion

in G

abon

has

gai

ned

RSPO

‘New

Pla

ntin

g Pr

oced

ure’

ver

ifica

tion,

w

hile

a w

orki

ng p

lant

atio

n an

d m

ill ha

ve a

chie

ved

full

RSPO

cer

tifica

tion.

Rep

orte

dly,

the

com

pany

acq

uire

d th

e la

nd

for i

ts p

lant

atio

ns o

n le

aseh

olds

from

the

Gov

ernm

ent o

f Gab

on, c

ompl

ying

with

the

‘Fre

e Pr

ior a

nd In

form

ed C

onse

nt’

proc

ess

and

incl

udin

g th

e de

velo

pmen

t of s

ocia

l man

agem

ent p

lans

. Fur

ther

mor

e, in

line

with

RSP

O g

uide

lines

, tw

o th

irds

of th

e ac

quire

d la

nd h

as b

een

set a

side

for c

onse

rvat

ion

of b

iodi

vers

ity a

nd fo

rest

car

bon

and

for t

he p

rote

ctio

n of

w

ater

cat

chm

ents

, sai

d th

e co

mpa

ny.

27IN

DUST

RY

STAN

DARD

S –

Su

stai

nabl

e oi

l pal

m

Oct

ober

Glo

bal

Prod

uctio

n &

sour

cing

pol

icy:

A g

roup

of p

rivat

e co

mpa

nies

has

laun

ched

Pal

m D

one

Righ

t, an

inte

rnat

iona

l aw

aren

ess

cam

paig

n ai

med

at p

rom

otin

g su

stai

nabl

e fo

rms

of p

alm

oil

prod

uctio

n vi

a ed

ucat

ion

prog

ram

mes

that

eng

age

indu

stry

pl

ayer

s, c

onsu

mer

s, t

he m

edia

and

oth

er s

take

hold

ers.

Mem

bers

hav

e su

bscr

ibed

to,

inte

r al

ia, (

i) or

gani

c pa

lm o

il pr

oduc

tion,

inc

ludi

ng n

atur

al p

est

man

agem

ent,

mul

ti-cr

oppi

ng a

nd c

ompo

stin

g; (

ii) es

tabl

ishi

ng p

lant

atio

ns o

nly

on e

xist

ing

crop

land

or

degr

aded

land

; (iii)

gua

rant

eein

g fa

ir tra

de p

rem

ium

s to

gro

wer

s; (i

v) e

mpl

oyin

g lo

w-im

pact

te

chni

ques

for r

efini

ng p

alm

oil;

and

(v) t

race

abilit

y of

pal

m o

il th

roug

hout

the

entir

e su

pply

cha

in. A

t the

mom

ent,

the

mos

tly U

S- a

nd E

U-o

rient

ed s

uppl

y ch

ain

relie

s on

sm

all q

uant

ities

sou

rced

in E

cuad

or, S

ierra

Leo

ne a

nd G

hana

.

28IN

DUST

RY

STAN

DARD

S –

Su

stai

nabl

e oi

l pal

m

Oct

ober

Indi

aPr

oduc

tion

& ce

rtific

atio

n: T

he In

dian

Sol

vent

Ext

ract

ors

Asso

ciat

ion,

the

coun

try’s

prin

cipa

l veg

etab

le o

il tra

de g

roup

, ha

s jo

ined

forc

ed w

ith a

n in

tern

atio

nal N

GO

and

nat

iona

l res

earc

h in

stitu

tions

to d

evel

op a

cou

ntry

-spe

cific

sus

tain

abilit

y fra

mew

ork

for p

alm

oil p

rodu

ctio

n. W

hile

dra

win

g on

the

expe

rienc

es o

f Mal

aysi

a an

d In

done

sia,

the

new

sta

ndar

d w

ould

be

tailo

red

to th

e co

untry

’s ec

olog

ic, e

cono

mic

and

soc

ial c

ondi

tions

. The

initi

ativ

e w

ill fo

cus

on th

e fo

rmul

atio

n of

bes

t-pr

actic

es n

orm

s on

pro

duct

ion

for I

ndia

n gr

ower

s. C

urre

ntly,

the

coun

try im

ports

aro

und

9 m

illion

tonn

es o

f pal

m o

il eac

h ye

ar, w

hile

ann

ual d

omes

tic p

alm

oil o

utpu

t sta

nds

at 2

00 th

ousa

nd to

nnes

. Con

side

rabl

e ex

pans

ion

poss

ibilit

ies

are

said

to

exi

st in

Indi

a’s

sout

hern

and

nor

th-e

aste

rn s

tate

s (s

ee a

lso M

PPU

Jun

e’16

).

29IN

DUST

RY

STAN

DARD

S –

Su

stai

nabl

e oi

l pal

m

Nov

embe

rG

loba

lPr

oduc

tion:

A w

orki

ng g

roup

incl

udin

g pa

lm o

il pro

duce

rs a

nd N

GO

s ag

reed

on

a un

ified

app

roac

h to

impl

emen

ting

“no

defo

rest

atio

n” p

ledg

es b

y pr

ivat

e co

mpa

nies

. In

parti

cula

r, co

nsen

sus

has

been

reac

hed

on a

sin

gle

met

hodo

logy

for

dete

rmin

ing

wha

t con

stitu

tes

a ‘H

igh

Car

bon

Stoc

k’ la

ndsc

ape.

The

agr

eem

ent e

nabl

es c

ompa

nies

to fo

llow

a c

oher

ent

set o

f prin

cipl

es w

hen

impl

emen

ting

com

mitm

ents

to ‘n

o de

fore

stat

ion’

in th

eir p

alm

oil

oper

atio

ns a

nd s

uppl

y ch

ains

. Th

e gr

oup

also

issu

ed a

list

of s

till o

utst

andi

ng is

sues

, inc

ludi

ng th

e de

velo

pmen

t of s

yste

ms

to e

nsur

e hi

gh q

ualit

y as

sess

men

ts, i

ndep

ende

nt v

erifi

catio

n, a

nd m

eans

of r

edre

ss fo

r com

mun

ities

who

se ri

ghts

are

infri

nged

.

30IN

DUST

RY

STAN

DARD

S –

Su

stai

nabl

e oi

l pal

m

Nov

embe

rG

loba

lRS

PO:

In it

s la

test

gen

eral

ass

embl

y, th

e RS

PO –

the

wor

ld’s

lead

ing,

indu

stry

-bac

ked

stan

dard

set

ting

body

for p

alm

oil

– de

cide

d to

(i) i

mpl

emen

t and

mon

itor R

SPO

rem

edia

tion

and

com

pens

atio

n pr

oced

ures

in a

n eff

ectiv

e an

d tra

nspa

rent

m

anne

r; (ii)

ens

ure

that

mem

bers

from

all s

ecto

rs e

qual

ly c

ompl

y to

and

abi

de w

ith th

e re

quire

men

ts o

f the

org

aniza

tion;

(iii

) im

prov

e th

e pr

otec

tion

of h

uman

righ

ts b

y pr

ovid

ing

supp

ort t

o co

mpl

aina

nts

and

com

mun

ity s

poke

sper

sons

; and

(iv

) pro

mot

e sm

allh

olde

r inc

lusi

vity

in s

usta

inab

le p

alm

oil

supp

ly c

hain

s. T

he b

ody

also

info

rmed

that

act

ion

has

been

ta

ken

agai

nst n

umer

ous

mem

bers

for n

ot s

ubm

ittin

g an

nual

pro

gres

s re

ports

.

Oilcrops complex: Policy changes and industry measures - Annual compendium 2016 45

No.

Dom

ain

Mon

thC

ount

ryD

escr

iptio

n *

31IN

DUST

RY

STAN

DARD

S –

Su

stai

nabl

e oi

l pal

m

Nov

embe

rIn

done

sia

Labo

ur ri

ghts

: Ac

cord

ing

to A

mne

sty

Inte

rnat

iona

l, se

vera

l glo

bal f

ood/

hous

ehol

d go

od c

ompa

nies

sou

rced

pal

m o

il fro

m p

lant

atio

ns in

Indo

nesi

a w

here

labo

ur a

buse

s w

ere

unco

vere

d. T

he c

once

rned

pal

m o

il pr

oduc

er h

as w

elco

med

th

e N

GO

’s re

port,

sta

ting

that

it h

elpe

d hi

ghlig

ht la

bour

issu

es w

ithin

the

wid

er in

dust

ry a

nd in

Indo

nesi

a in

par

ticul

ar.

The

com

pany

reco

gnize

d th

e ne

ed fo

r bet

ter m

onito

ring

and

enfo

rcem

ent i

ts la

bour

rela

ted

com

mitm

ents

. With

rega

rd

to th

e co

ncer

ned

cons

umer

goo

d co

mpa

nies

, the

fact

that

all

of th

em c

laim

to u

se ‘s

usta

inab

le p

alm

oil’

, sug

gest

s th

at

certi

ficat

ion

alon

e m

ay n

ot b

e su

ffici

ent t

o re

solv

e th

e hi

ghlig

hted

issu

es. F

indi

ng a

sol

utio

n w

ill re

quire

the

colla

bora

tion

of g

over

nmen

ts, c

ompa

nies

and

civ

il so

ciet

y or

gani

zatio

ns, t

he p

alm

oil

com

pany

sai

d.

32IN

DUST

RY

STAN

DARD

S –

Su

stai

nabl

e oi

l pal

m

Nov

embe

rPe

ruRS

PO:

Last

Oct

ober

, a P

eruv

ian

palm

oil

prod

ucer

dec

ided

to

volu

ntar

ily w

ithdr

aw fr

om t

he R

SPO

. Acc

ordi

ng t

o a

com

plai

nt fi

led

by a

n in

dige

nous

com

mun

ity,

the

conc

erne

d co

mpa

ny c

lear

ed c

omm

unity

land

s, d

estro

yed

natu

ral

fore

sts,

and

pla

nted

oil p

alm

on

nativ

e cu

stom

ary

land

, alle

gedl

y vi

olat

ing

seve

ral R

SPO

rule

s an

d pr

inci

ples

. (Ea

rlier

this

ye

ar, a

larg

e pa

lm o

il gr

ower

in S

outh

east

Asi

a al

so d

ecid

ed to

with

draw

from

RSP

O, c

iting

sus

tain

abilit

y is

sues

in it

s su

pply

cha

in –

see

MPP

U Ju

ne’1

6).

33IN

DUST

RY

STAN

DARD

S –

Su

stai

nabl

e oi

l pal

m

Dece

mbe

rG

loba

lRS

PO:

The

Roun

dtab

le o

n Su

stai

nabl

e Pa

lm O

il (RS

PO),

the

wor

ld’s

prin

cipa

l bod

y fo

r sus

tain

able

pal

m o

il cer

tifica

tion,

pu

blis

hed

the

follo

win

g pe

rform

ance

indi

cato

rs re

ferri

ng to

Dec

embe

r 201

6 (s

ee M

PPU

Feb

.’16

for i

nfor

mat

ion

conc

erni

ng

2015

): (i

) 3.2

5 m

illion

hec

tare

s of

oil

palm

are

cer

tified

sus

tain

able

(inc

ludi

ng g

roup

cer

tifica

tion

for s

mal

lhol

ders

), w

hich

re

pres

ents

abo

ut 1

8 pe

rcen

t of t

he w

orld

’s to

tal m

atur

e oi

l pal

m a

rea

and

com

pare

s to

a c

ertifi

ed a

rea

of 2

.77

milli

on h

a in

Dec

embe

r 201

5; (

ii) th

e an

nual

pro

duct

ion

capa

city

of R

SPO

-cer

tified

pal

m o

il am

ount

s to

12.

15 m

illion

tonn

es, o

r ab

out 2

0.8

perc

ent o

f glo

bal p

rodu

ctio

n; th

ese

figur

es a

re s

omew

hat b

elow

the

201

5 le

vels

, in

part

beca

use

of o

ne R

SPO

m

embe

rshi

p su

spen

sion

and

one

mem

ber’s

sel

f-with

draw

al fr

om R

SPO

cer

tifica

tion

(see

MPP

U J

une’

16);

(iii) a

ctua

l sa

les

of R

SPO

-cer

tified

pal

m o

il con

tinue

to fa

ll sho

rt of

tota

l sup

plie

s; th

e fig

ures

repo

rted

for 2

016

confi

rm th

at o

ver h

alf

of th

e av

aila

ble

certi

fied

prod

uct d

oes

not fi

nd a

buy

er a

nd is

sol

d as

con

vent

iona

l pal

m o

il, i.

e. w

ithou

t pric

e pr

emiu

m;

(iv) i

n 20

16, t

he th

ree

sale

s ch

anne

ls th

at a

re b

ased

on

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 65

perc

ent o

f tot

al s

ales

; the

rem

aini

ng 3

5 pe

rcen

t wer

e m

arke

ted

via

Book

&Cla

im m

echa

nism

s (w

hich

con

tribu

te o

nly

indi

rect

ly t

o su

stai

nabl

e pr

oduc

tion

syst

ems)

– a

n im

prov

emen

t co

mpa

red

to 2

015,

whe

n Bo

ok&C

laim

sal

es a

ccou

nted

for a

bout

55

perc

ent o

f tot

al tr

ansa

ctio

ns.

34IN

DUST

RY

STAN

DARD

S –

Fo

od p

rodu

cts

June

Indi

aVe

geta

ble

oil a

dulte

ratio

n: I

n In

dia,

new

cas

es o

f veg

etab

le o

il ad

ulte

ratio

n ha

ve b

een

repo

rted

in J

une

2016

(see

also

M

PPU

May

’15)

. A p

rivat

e co

nsum

er o

rgan

izatio

n te

sted

sam

ples

of l

oose

edi

ble

oil c

olle

cted

rand

omly

in o

pen

mar

kets

in

15

stat

es a

cros

s th

e co

untry

. Rep

orte

dly,

adul

tera

tion

with

pot

entia

lly h

ealth

thre

aten

ing

subs

tanc

es w

as fo

und

in

alm

ost h

alf o

f the

ove

r 1 0

00 s

ampl

es. T

he h

ighe

st ra

te o

f adu

ltera

tion

was

foun

d in

coc

onut

oil,

follo

wed

by

cotto

nsee

d,

sesa

me,

mus

tard

, gro

undn

ut, p

alm

olei

n, s

oy a

nd s

unflo

wer

oil.

Rep

orte

dly,

the

test

s fo

llow

ed b

oth

qual

ity a

nd s

afet

y pa

ram

eter

s as

pre

scrib

ed b

y FS

SAI (

Food

Saf

ety

and

Stan

dard

s Au

thor

ity o

f Ind

ia),

and

wer

e ca

rried

out

by

accr

edite

d la

bora

torie

s.

35IN

DUST

RY

STAN

DARD

S –

Fo

od p

rodu

cts

Augu

stIta

lyPr

oduc

t ref

orm

ulat

ion:

In

Italy,

a fo

od m

anuf

actu

ring

grou

p re

porte

d to

hav

e re

plac

ed p

alm

oil

with

alte

rnat

ive

oils

suc

h as

sun

flow

er a

nd e

xtra

virg

in o

live

oil i

n 25

per

cent

of i

ts b

aker

y pr

oduc

ts. R

epor

tedl

y, th

e re

form

ulat

ion

proc

ess

is p

art

of o

ngoi

ng e

fforts

to re

duce

the

satu

rate

d fa

t con

tent

of t

he c

ompa

ny’s

food

item

s.

36IN

DUST

RY

STAN

DARD

S –

Fo

od p

rodu

cts

Oct

ober

Indi

aFo

rtifie

d ed

ible

oil:

In

Indi

a, a

fter G

ujar

at, a

lso

Raja

stha

n st

ate

has

acco

mpl

ishe

d fu

ll vol

unta

ry fo

rtific

atio

n of

edi

ble

oils

, st

ate

gove

rnm

ent o

ffici

al in

form

ed. R

epor

tedl

y, th

roug

hout

the

stat

e te

rrito

ry, o

nly

oil f

ortifi

ed w

ith V

itam

in A

and

D is

be

ing

sold

. For

tifica

tion

is s

een

as s

igni

fican

t ste

p in

the

fight

aga

inst

mal

nutri

tion,

esp

ecia

lly a

mon

g th

e ru

ral p

opul

atio

n.

37IN

DUST

RY

STAN

DARD

S –

Fe

ed

July

Euro

pean

Uni

on

Feed

labe

lling:

A c

ode

of g

ood

labe

lling

prac

tices

for c

ompo

und

feed

join

tly d

evel

oped

join

tly b

y Eu

rope

’s fe

ed in

dust

ry

and

farm

er a

ssoc

iatio

ns h

as b

een

offici

ally

end

orse

d by

the

Euro

pean

Com

mis

sion

. The

cod

e, w

hich

will

harm

onize

pr

actic

es a

cros

s EU

mem

ber s

tate

s, a

ims

to g

uide

feed

man

ufac

ture

rs o

n ho

w to

labe

l the

ir pr

oduc

ts w

hile

ena

blin

g fa

rmer

s to

mak

e inf

orm

ed d

ecis

ions

. The

code

incl

udes

a se

ctio

n on

clai

ms,

whi

ch p

rovi

des g

uida

nce o

n th

e sub

stan

tiatio

n of

cla

ims

and

lists

per

mitt

ed/p

rohi

bite

d cl

aim

s.

46 Oilcrops complex: Policy changes and industry measures - Annual compendium 2016

No.

Dom

ain

Mon

thC

ount

ryD

escr

iptio

n *

38BI

OFU

EL/B

IOEN

ERG

YJa

nuar

yEu

rope

an U

nion

Bi

odie

sel s

tand

ard:

Eur

ope’

s st

anda

rdiza

tion

bodi

es a

gree

d to

rele

ase

a ne

w v

olun

tary

sta

ndar

d fo

r the

use

of B

20/B

30

(i.e.

die

sel b

lend

s co

ntai

ning

20

or 3

0 pe

rcen

t of b

iodi

esel

) in

com

pany

aut

omot

ive

fleet

s. T

he c

urre

nt d

iese

l fue

l sta

ndar

d on

ly a

llow

s up

to 7

per

cent

bio

dies

el c

onte

nt. T

he n

ew s

tand

ard

is c

ontin

gent

upo

n th

e bi

odie

sel p

ortio

n m

eetin

g th

e Eu

rope

an n

orm

for b

iodi

esel

EN

142

14. T

he a

pplic

atio

n of

the

new

sta

ndar

d is

spe

cific

ally

gea

red

tow

ard

fleet

s in

hea

vy

good

s ve

hicl

e tra

ffic.

39BI

OFU

EL/B

IOEN

ERG

YJa

nuar

yN

orw

ayAv

iatio

n fu

el:

Osl

o ai

rpor

t in

Nor

way

has

bec

ome

the

first

com

mer

cial

airp

ort t

o off

er je

t bio

fuel

to a

ll ai

rline

s th

roug

h th

e no

rmal

sup

ply

mec

hani

sm (a

s op

pose

d to

spe

cial

ized

fuel

truc

ks).

The

biof

uel –

pro

duce

d fro

m c

amel

ina

sativ

a se

ed

grow

n in

Spa

in –

is b

lend

ed w

ith c

onve

ntio

nal je

t fue

l at a

ratio

of 4

8 pe

rcen

t bio

fuel

to 5

2 pe

rcen

t fos

sil f

uel (

for i

ndus

trial

an

d ot

her u

ses

of c

amel

ina

in E

urop

e, th

e U

nite

d St

ates

and

Can

ada

see

also

MPP

U F

eb./A

ug./D

ec.’1

1, A

pr./N

ov.’1

3,

Feb.

’14

& Fe

b.’1

5). R

epor

tedl

y, ot

her a

irpor

ts a

re a

lso

mov

ing

tow

ards

cre

atin

g ‘b

iopo

rts’ u

sing

a v

arie

ty o

f fee

dsto

ck,

incl

udin

g us

ed c

ooki

ng o

il. In

the

Euro

pean

Uni

on, a

pub

lic/p

rivat

e in

itiat

ive

laun

ched

in 2

011

aim

s at

a 3

.5 p

erce

nt

biof

uel s

hare

in a

ll av

iatio

n fu

el b

y 20

20 (s

ee M

PPU

Aug

.’11)

.

40BI

OFU

EL/B

IOEN

ERG

YM

arch

Tuni

sia

Biod

iese

l cer

tifica

tion:

A

biof

uel p

rodu

cer

in T

unis

ia h

as e

arne

d th

e Ro

undt

able

on

Sust

aina

ble

Biom

ater

ials

(RSB

) ce

rtific

atio

n fo

r bio

dies

el p

rodu

ctio

n. T

he c

once

rned

com

pany

– a

llege

dly

the

first

one

in A

frica

– u

ses

excl

usiv

ely

used

co

okin

g oi

l as

feed

stoc

k. T

he fi

nish

ed fu

el is

sol

d to

the

Euro

pean

mar

ket.

The

com

pany

is a

lso

certi

fied

thro

ugh

the

Inte

rnat

iona

l Sus

tain

abilit

y an

d C

arbo

n C

ertifi

catio

n sy

stem

(ISC

C).

41BI

OFU

EL/B

IOEN

ERG

YM

ayEu

rope

an U

nion

Bi

odie

sel e

mis

sion

mea

sure

men

t: A

new

stu

dy p

rese

nted

by

an e

nviro

nmen

tal a

dvoc

acy

grou

p su

gges

ts th

at, i

n th

e Eu

rope

an U

nion

, bio

dies

el p

rodu

ced

from

cro

ps g

row

n on

agr

icul

tura

l lan

d ca

n le

ad to

sim

ilar o

r hig

her g

reen

hous

e ga

s em

issi

ons

than

the

foss

il di

esel

it re

plac

es –

whe

n th

e im

pact

of i

ndire

ct la

nd u

se c

hang

es is

take

n in

to a

ccou

nt. T

he

stud

y an

alys

ed p

alm

, rap

e an

d so

y-ba

sed

biod

iese

l.

42BI

OFU

EL/B

IOEN

ERG

YM

ayTh

aila

ndBi

oene

rgy

prod

uctio

n: I

n Th

aila

nd, a

priv

ate

join

t ven

ture

ann

ounc

ed th

e co

mpl

etio

n of

a b

iom

ass

pow

er p

lant

cap

able

to

con

vert

coco

nut w

aste

into

ene

rgy.

Repo

rtedl

y, th

e pl

ant,

whi

ch u

ses

high

-pre

ssur

e hi

gh-te

mpe

ratu

re te

chno

logy

, is

desi

gned

for t

he c

ombu

stio

n of

all

form

s of

coc

onut

was

te –

hus

k, s

hell,

bun

ches

, fro

nds,

leav

es a

nd tr

unk.

43BI

OFU

EL/B

IOEN

ERG

YM

ayU

nite

d St

ates

Avia

tion

fuel

: U

.S. c

arrie

r Uni

ted

Airli

nes

info

rmed

that

it w

ill us

e a

blen

d of

30

perc

ent r

enew

able

jet f

uel –

pro

duce

d fro

m

non-

edib

le o

ils/fa

ts a

nd a

gric

ultu

ral w

aste

s –

and

70 p

erce

nt p

etro

leum

fuel

on

sele

cted

dom

estic

flig

hts.

Pur

porte

dly,

the

initi

ativ

e is

par

t of t

he c

ompa

ny’s

effor

ts to

redu

ce e

mis

sion

s an

d su

ppor

t ene

rgy

dive

rsifi

catio

n. L

ikew

ise,

the

Dutc

h ca

rrier

KLM

ann

ounc

ed th

at it

will

test

the

effici

ency

of c

amel

ina-

base

d je

t fue

l on

sele

cted

com

mer

cial

flig

hts.

Cam

elin

a is

a n

on-e

dibl

e oi

lsee

d cr

op s

uita

ble

for n

orth

ern

clim

ates

, whi

ch is

sai

d to

be

suita

ble

for c

ultiv

atio

n as

a ro

tatio

n cr

op in

re

lativ

ely

dry

area

s an

d on

thin

soi

ls.

44BI

OFU

EL/B

IOEN

ERG

YJu

lyIn

done

sia

Bioe

nerg

y pr

oduc

tion:

St

ate-

owne

d po

wer

com

pany

PLN

info

rmed

tha

t it

cann

ot c

ompl

y w

ith g

over

nmen

t ru

les

on

burn

ing

dies

el c

onta

inin

g 30

per

cent

of p

alm

oil-

base

d bi

odie

sel (

know

n as

B30

) bec

ause

suc

h bl

ends

wou

ld d

amag

e its

gen

erat

ors.

Und

er re

gula

tions

rele

ased

last

yea

r, st

artin

g in

Jan

uary

201

6, In

done

sian

pow

er fi

rms

are

requ

ired

to u

se

B30.

Com

men

ting

on P

LN’s

stat

emen

t, m

arke

t obs

erve

rs p

oint

ed o

ut th

at lo

wer

than

exp

ecte

d up

take

of b

iodi

esel

by

the

coun

try’s

elec

trici

ty s

ecto

r cou

ld w

eigh

on

dom

estic

and

inte

rnat

iona

l pal

m o

il pric

es –

giv

en th

at d

omes

tic s

uppl

ies

(and

he

nce

expo

rt av

aila

bilit

ies)

of p

alm

oil c

ould

exp

erie

nce

a si

gnifi

cant

rise

. The

gov

ernm

ent’s

201

6 ta

rget

for t

otal

dom

estic

up

take

of p

alm

oil-

base

d bi

odie

sel (

by b

oth

the

trans

porta

tion

and

pow

er g

ener

atio

n se

ctor

s) is

6.1

milli

on to

nnes

, a le

vel

indu

stry

exp

erts

con

side

r to

be o

ut-o

f-rea

ch.

45BI

OFU

EL/B

IOEN

ERG

YAu

gust

New

Zea

land

Biod

iese

l pro

duct

ion:

Th

e co

untry

’s fir

st c

omm

erci

al-s

cale

bio

dies

el p

lant

was

exp

ecte

d to

com

men

ce p

rodu

ctio

n in

Au

gust

201

6, re

porte

d pr

ivat

e so

urce

s. T

he c

once

rned

com

pany

is u

sing

ined

ible

tallo

w (a

byp

rodu

ct o

f the

mea

t ind

ustry

ty

pica

lly u

sed

in th

e m

anuf

actu

ring

of s

oap

and

cand

les)

as

feed

stoc

k, lik

ely

abso

rbin

g ab

out 1

2 pe

rcen

t of t

he c

ount

ry’s

ined

ible

tallo

w o

utpu

t. Th

e pl

ant’s

ann

ual b

iodi

esel

out

put i

s pe

gged

at 1

7 00

0 to

nnes

.

Oilcrops complex: Policy changes and industry measures - Annual compendium 2016 47

No.

Dom

ain

Mon

thC

ount

ryD

escr

iptio

n *

46BI

OFU

EL/B

IOEN

ERG

YAu

gust

Uni

ted

King

dom

Biod

iese

l fee

dsto

ck:

Acco

rdin

g to

indu

stry

sou

rces

, pal

m o

il is

no

long

er p

rese

nt in

the

ren

ewab

le b

iodi

esel

tha

t is

bl

ende

d in

to fo

ssil

fuel

s in

the

UK.

Rep

orte

dly,

palm

oil

cont

ent s

tarte

d dr

oppi

ng in

201

2, a

nd U

K bi

odie

sel –

whe

ther

pr

oduc

ed in

the

UK

or im

porte

d –

is n

ow la

rgel

y m

ade

from

was

te fe

edst

ock,

in p

artic

ular

use

d co

okin

g oi

l.

47BI

OFU

EL/B

IOEN

ERG

YN

ovem

ber

Indo

nesi

aBi

ogas

pro

duct

ion:

Rep

orte

dly,

an In

done

sian

pal

m o

il co

mpa

ny is

pro

duci

ng e

xces

s el

ectri

city

in it

s po

wer

pla

nts

that

ru

n on

bio

gas

prod

uced

from

pal

m o

il m

ill effl

uent

(PO

ME)

. PO

ME

– th

e w

aste

wat

er d

isch

arge

d at

pal

m o

il m

ills d

urin

g st

eriliz

atio

n, e

xtra

ctio

n an

d cl

arifi

catio

n pr

oces

ses

– pr

oduc

es la

rge

amou

nts

of m

etha

ne g

as v

ia a

naer

obic

dig

estio

n.

The

com

pany

is a

ppea

ling

to p

rivat

e in

vest

ors

and

stat

e el

ectri

city

pro

vide

rs to

buy

its

surp

lus

pow

er (s

ee a

lso M

PPU

Ap

r.’15

).

48G

MO

ISSU

ESJa

nuar

yU

nite

d St

ates

GM

O la

bellin

g: R

espo

ndin

g to

cal

ls fo

r mor

e tra

nspa

renc

y in

food

pro

duct

ingr

edie

nts,

US-

base

d gl

obal

food

com

pany

C

ampb

ell S

oup

Co.

ann

ounc

ed it

s w

ithdr

awal

from

all e

fforts

led

by in

dust

ry g

roup

s op

posi

ng m

anda

tory

GM

O la

bellin

g.

The

com

pany

sai

d it

wou

ld s

uppo

rt th

e en

actm

ent

of f

eder

al l

egis

latio

n to

est

ablis

h a

sing

le m

anda

tory

lab

elin

g st

anda

rd fo

r G

M-d

eriv

ed fo

ods,

incl

udin

g ru

les

for

non-

GM

O c

laim

s m

ade

on fo

od p

acka

ging

. Las

t ye

ar, l

egis

lato

rs

and

conc

erne

d fe

dera

l age

ncie

s ha

d pr

opos

ed to

regu

late

GM

-labe

lling

natio

nwid

e on

a v

olun

tary

bas

is (s

ee M

PPU

Au

g. &

Dec

.’15)

, whi

le e

fforts

to in

trodu

ce m

anda

tory

labe

lling

cont

inue

to b

e pu

rsue

d in

sel

ecte

d st

ates

(see

MPP

U

June

’14)

. Cam

pbel

l Sou

p C

o. b

elie

ves

that

a n

atio

nal s

tand

ard

wou

ld b

ette

r inf

orm

con

sum

ers

and

pre-

empt

effo

rts a

t st

ate

leve

l tha

t cou

ld b

e im

prac

tical

and

con

fusi

ng. T

he c

ompa

ny s

aid

that

– w

hile

it re

cogn

izes

that

GM

Os

are

safe

– it

is

pre

pare

d to

labe

l all

of it

s U

S pr

oduc

ts fo

r the

pre

senc

e of

GM

-der

ived

ingr

edie

nts.

Rep

orte

dly,

abou

t thr

ee-q

uarte

rs

of th

e co

mpa

ny’s

prod

ucts

con

tain

suc

h in

gred

ient

s (n

otab

ly G

M s

oybe

ans,

mai

ze, r

apes

eed

and

suga

r bee

ts).

As to

the

extra

cos

ts in

volv

ed, t

he c

ompa

ny s

aid

they

wou

ld b

e m

anag

eabl

e –

prov

ided

labe

lling

was

regu

late

d at

fede

ral l

evel

.

49G

MO

ISSU

ESM

ayU

nite

d St

ates

GM

soy

bean

: Pr

ivat

e so

urce

s re

porte

d th

at le

adin

g gr

ain

trade

rs in

the

Uni

ted

Stat

es c

ould

refra

in fr

om b

uyin

g so

ybea

ns

prod

uced

from

Mon

sant

o’s l

ates

t GM

varie

ty (R

ound

Up-

Read

y-2-

Xte

nd),

due

to c

once

rns t

hat t

he o

utst

andi

ng re

gula

tory

ap

prov

al in

the

Euro

pean

Uni

on c

ould

dis

rupt

inte

rnat

iona

l tra

de. E

arlie

r thi

s ye

ar, M

onsa

nto

star

ted

sellin

g th

e ne

w s

eed

in N

orth

Am

eric

a, a

ssum

ing

that

the

EU w

ould

gra

nt it

s ap

prov

al w

ithou

t del

ay. T

he c

ompa

ny, w

hich

exp

ecte

d fa

rmer

s in

th

e U

nite

d St

ates

and

Can

ada

to p

lant

the

new

see

d on

som

e 1.

4 m

illion

hec

tare

s, h

as n

ow o

ffere

d to

repl

ace

the

seed

s w

ith v

arie

ties

that

hav

e be

en c

lear

ed b

y th

e ke

y im

port

auth

oriti

es. T

he e

vent

sho

ws

that

trad

ers

are

incr

easi

ngly

relu

ctan

t to

buy

GM

pro

duct

s th

at h

ave

not b

een

gran

ted

regu

lato

ry a

ppro

val in

the

maj

or e

xpor

t mar

kets

. Rep

orte

dly,

to a

ddre

ss

the

trade

’s co

ncer

ns, s

ome

seed

com

pani

es h

ave

star

ted

sellin

g th

eir G

M v

arie

ties

unde

r con

tract

s th

at d

etai

l spe

cific

lo

catio

ns w

here

gro

wer

s ca

n de

liver

thei

r cro

ps.

50G

MO

ISSU

ESAu

gust

Aust

ralia

GM

vs.

non

-GM

rape

seed

: Au

stra

lian

rape

seed

gro

wer

s ha

ve s

ucce

eded

in c

aptu

ring

a pr

emiu

m fo

r non

-GM

pro

duce

th

anks

to v

olun

tary

mar

ket s

egre

gatio

n, a

ccor

ding

to in

dust

ry s

ourc

es. I

n Au

stra

lia, c

ultiv

atio

n of

GM

rape

seed

has

bee

n au

thor

ized

in V

icto

ria, N

ew S

outh

Wal

es a

nd W

este

rn A

ustra

lia. S

trict

seg

rega

tion

(incl

udin

g de

taile

d lo

gist

ic a

nd tr

ade

stan

dard

s) h

as b

een

intro

duce

d in

200

7, to

sep

arat

e G

M fr

om n

on-G

M ra

pese

ed th

roug

hout

the

deliv

ery

supp

ly c

hain

. In

dust

ry s

ourc

es e

stim

ate

that

out

of 2

2 m

illion

tonn

es o

f rap

esee

d ex

porte

d fro

m A

ustra

lia s

ince

201

0, 1

5 m

illion

tonn

es

– or

abo

ut tw

o th

irds

– ha

s be

en c

onve

ntio

nal p

rodu

ce, b

ough

t by

cust

omer

s pr

efer

ring

non-

GM

cro

ps, s

uch

as th

e EU

. Re

porte

dly,

grow

ers

have

rece

ived

an

estim

ated

AU

D 25

per

tonn

e pr

emiu

m (U

SD 1

9) fo

r the

ir no

n-G

M ra

pese

ed s

ales

.

51G

MO

ISSU

ESO

ctob

erG

loba

lN

on-G

M &

org

anic

veg

etab

le o

il: C

onte

ndin

g w

ith s

hifti

ng c

onsu

mer

pre

fere

nces

, mul

tinat

iona

l gra

in tr

adin

g fir

ms

are

step

ping

up

effor

ts to

offe

r foo

d in

gred

ient

s pe

rcei

ved

as m

ore

natu

ral.

Rece

ntly,

one

com

pany

sta

rted

offer

ing

on a

co

mm

erci

al s

cale

hig

h-ol

eic

sunfl

ower

oil

certi

fied

as n

ot g

enet

ical

ly m

odifi

ed, w

hile

ano

ther

com

pany

dec

ided

to a

dd

verifi

ed o

rgan

ic s

oybe

an o

il to

its e

xist

ing

rang

e of

cer

tified

non

-GM

soy

and

rape

seed

oil.

Whi

le h

elpi

ng th

eir c

usto

mer

s m

eet

incr

easi

ng d

eman

d fo

r no

n-G

M a

nd o

rgan

ic p

rodu

cts,

the

com

pani

es a

re s

eizin

g va

lue-

adde

d op

portu

nitie

s pr

esen

ted

by s

peci

alty

sup

ply

chai

ns.

48 Oilcrops complex: Policy changes and industry measures - Annual compendium 2016

No.

Dom

ain

Mon

thC

ount

ryD

escr

iptio

n *

52R&

D –

Oilc

rop

varie

ties

Febr

uary

Can

ada/

Fran

cePr

otei

n-ric

h no

n-G

M ra

pese

ed:

A bi

otec

h fir

m a

nnou

nced

the

laun

ch la

ter t

his

year

in C

anad

a of

a n

ew h

igh-

prot

ein

rape

seed

var

iety

. The

mea

l obt

aine

d fro

m t

he n

ew v

arie

ty is

sai

d to

con

tain

44

perc

ent

prot

ein,

com

pare

d to

abo

ut

37 p

erce

nt in

con

vent

iona

l rap

esee

d m

eal.

The

high

-pro

tein

low

-fibr

e m

eal h

as b

een

deve

lope

d (u

sing

con

vent

iona

l br

eedi

ng te

chni

ques

) to

prov

ide

pig

and

poul

try fa

rmer

s w

ith a

cos

t-effe

ctiv

e al

tern

ativ

e to

con

vent

iona

l soy

bean

mea

l, sa

id th

e co

mpa

ny. I

n a

join

t ven

ture

with

a F

renc

h se

ed fi

rm, C

anad

a’s

sprin

g-gr

own

varie

ty is

to b

e ad

apte

d to

be

culti

vate

d as

a w

inte

r cro

p in

Fra

nce.

53R&

D –

Oilc

rop

varie

ties

May

Arge

ntin

aG

roun

dnut

: Ar

gent

ina’

s Ag

ricul

tura

l Tec

hnol

ogy

Inst

itute

pre

sent

ed a

new

ear

ly-m

atur

ing

grou

ndnu

t var

iety

cha

ract

erize

d by

hig

h yi

elds

and

larg

e gr

ain

size

. The

ear

ly-m

atur

ing

trait

is s

aid

to a

llow

for

an e

arly

har

vest

, thu

s co

ntrib

utin

g to

en

hanc

ed e

ffici

ency

in m

arke

ting

and

crus

h op

erat

ions

. The

new

var

iety

, whi

ch b

elon

gs to

the

runn

er lo

w-o

leic

gro

undn

ut

grou

p, w

ill be

read

y fo

r com

mer

cial

izatio

n in

201

7.

54R&

D –

Oilc

rop

varie

ties

May

Uni

ted

Stat

esSa

fflow

erse

ed:

A gr

oup

of U

.S.-b

ased

bio

tech

com

pani

es a

nnou

nced

suc

cess

ful fi

eld

trial

s of

saffl

ower

pla

nts

that

pr

oduc

e an

edi

ble

oil w

ith h

igh

leve

ls o

f ara

chid

onic

aci

d, a

fatty

aci

d al

lege

d to

pro

vide

dev

elop

men

tal b

enefi

ts fo

r in

fant

s. T

he n

ewly

dev

elop

ed o

il cou

ld p

rovi

de a

rene

wab

le a

nd s

usta

inab

le s

ourc

e of

this

nut

ritio

nally

rele

vant

fatty

aci

d,

the

com

pani

es s

aid.

The

see

d an

d its

oil

are

pend

ing

regu

lato

ry a

ppro

val b

efor

e co

mm

erci

aliza

tion.

55R&

D –

Oilc

rop

varie

ties

Nov

embe

rG

loba

lO

meg

a-3

enric

hed

rape

seed

oil:

Effo

rts a

re u

nder

way

to d

evel

op a

n om

ega-

3 be

arin

g ra

pese

ed o

il for

use

as

both

a fi

sh

oil s

ubst

itute

in g

loba

l aqu

acul

ture

indu

strie

s an

d a

func

tiona

l foo

d in

gred

ient

. The

sea

rch

for a

via

ble

fish

oil s

ubst

itute

is

driv

en b

y th

e pe

rsis

tent

glo

bal s

uppl

y de

ficit

in m

arin

e oi

ls. A

lthou

gh it

is p

ossi

ble

to p

rodu

ce o

meg

a-3

fatty

aci

ds

from

alg

ae o

r fun

gi, p

rohi

bitiv

ely

high

pro

duct

ion

cost

s m

ake

thes

e op

tions

unp

rofit

able

. The

refo

re, t

he p

rivat

e se

ctor

ha

s in

vest

ed in

tech

nolo

gies

to tr

ansp

lant

gen

es b

earin

g th

e ta

rget

ed fa

tty a

cids

from

alg

ae in

to r

apes

eed,

so

as to

cr

eate

a s

usta

inab

le, p

lant

-bas

ed s

ourc

e of

om

ega-

3. O

nce

thes

e te

chni

ques

are

opt

imize

d, la

rge-

scal

e pr

oduc

tion

of

omeg

a-3

enric

hed

rape

seed

oil

is d

eem

ed fe

asib

le a

nd w

ould

eas

e ha

rves

ting

pres

sure

on

finite

wild

fish

pop

ulat

ions

, in

dust

ry s

ourc

es s

ay. T

estin

g an

d re

gula

tory

app

rova

l of t

he e

nhan

ced

rape

seed

are

und

erw

ay a

nd c

omm

erci

aliza

tion

is e

xpec

ted

som

etim

e af

ter 2

020.

The

new

pro

duct

cou

ld a

lso

broa

den

acce

ss to

om

ega-

3s in

hum

an d

iets

, pos

sibl

y m

akin

g an

ess

entia

l fat

ty a

cid

with

hig

h he

alth

ben

efits

mor

e av

aila

ble

and

affor

dabl

e to

pop

ulat

ions

aro

und

the

wor

ld.

(On

past

effo

rts to

rais

e th

e es

sent

ial f

atty

aci

d co

nten

t in

othe

r veg

etab

le o

ils s

ee M

PPU

Feb

’10,

Aug

’11,

Jun

e’13

& F

eb/

May

/Jul

’14.

)

56R&

D –

Oilc

rop

varie

ties

Nov

embe

rIn

dia

Mor

inga

oil

as b

iodi

esel

feed

stoc

k: A

n In

dian

com

pany

spe

cial

ized

in b

ioen

ergy

cro

p R&

D an

noun

ced

the

laun

ch o

f a

new

hig

h-yi

eldi

ng, p

est-t

oler

ant v

arie

ty o

f mor

inga

ole

ifera

. Mor

inga

is a

fast

-gro

win

g, d

roug

ht-re

sist

ant t

ree

nativ

e to

no

rthw

este

rn In

dia

that

is w

idel

y cu

ltiva

ted

in tr

opic

al a

nd s

ubtro

pica

l are

as fo

r var

ious

food

and

non

-food

pur

pose

s.

Whi

le to

dat

e m

orin

ga o

il ha

s be

en u

sed

mai

nly

as a

hig

h-va

lue

food

sup

plem

ent a

nd in

gred

ient

in c

osm

etic

/med

icin

al

prod

ucts

, the

hig

h-yi

eldi

ng v

arie

ty d

evel

oped

in In

dia

is m

eant

for u

se a

s a

biod

iese

l fee

dsto

ck.

57R&

D –

Oilc

rop

varie

ties

Nov

embe

rU

nite

d St

ates

Her

bici

de to

lera

nt n

on-G

M ra

pese

ed:

A U

S-ba

sed

seed

com

pany

spe

cial

ized

in a

dvan

ced,

non

-tran

sgen

ic b

reed

ing

tech

niqu

es h

as d

evel

oped

a n

on-G

M,

herb

icid

e-to

lera

nt r

apes

eed

varie

ty u

sing

a p

aten

ted

‘gen

e-ed

iting

’ pr

oces

s (s

ee a

lso M

PPU

Sep

’15)

. Rep

orte

dly,

the

new

tech

nolo

gy a

llow

s br

eede

rs to

mak

e pr

ecis

e ge

netic

cha

nges

in a

pla

nt’s

geno

me

with

out i

ntro

duci

ng fo

reig

n ge

netic

mat

eria

l into

the

plan

t – h

ence

its

non-

GM

and

non

-tran

sgen

ic c

hara

cter

. The

ne

w ra

pese

ed v

arie

ty is

sai

d to

pro

vide

the

bene

fits

of g

enet

ic e

ngin

eerin

g –

with

out t

he u

sual

regu

lato

ry re

stric

tions

and

co

nsum

er c

ritic

ism

s. L

imite

d co

mm

erci

aliza

tion

has

begu

n in

the

north

ern

Uni

ted

Stat

es, w

hile

, in

Can

ada,

the

varie

ty’s

rele

ase

hing

es u

pon

loca

l reg

ulat

ory

appr

oval

, whi

ch is

exp

ecte

d fo

r nex

t yea

r. Th

e ne

w p

rodu

ct c

ould

hav

e im

porta

nt

impl

icat

ions

for t

he ra

pese

ed in

dust

ry in

term

s of

mar

ket a

cces

s, p

artic

ular

ly in

mar

kets

that

are

relu

ctan

t to

buy

GM

pr

oduc

ts.

58R&

D –

Oliv

e oi

lM

arch

Spai

nEx

tract

ion

tech

nolo

gy:

Und

er p

rivat

e re

sear

ch u

nder

take

n in

Spa

in, a

new

oil e

xtra

ctio

n te

chno

logy

– w

here

ext

ract

ion

is

assi

sted

by

puls

ed e

lect

ric fi

elds

(PEF

) – h

as b

een

deve

lope

d to

incr

ease

ext

ract

ion

yiel

ds, w

hile

rais

ing

the

conc

entra

tion

of h

ealth

-rela

ted

com

pone

nts

and

cons

iste

ntly

mai

ntai

ning

the

oil q

ualit

y. Ba

sed

on th

e su

cces

sful

com

plet

ion

of p

ilot

trial

s, th

e ne

w te

chno

logy

is s

aid

to b

e re

ady

for c

omm

erci

al s

calin

g-up

.

Oilcrops complex: Policy changes and industry measures - Annual compendium 2016 49

No.

Dom

ain

Mon

thC

ount

ryD

escr

iptio

n *

59R&

D –

Oliv

e oi

lN

ovem

ber

Italy

Adul

tera

tion:

A te

am o

f Ita

lian

rese

arch

ers

has

iden

tified

new

mar

kers

to d

etec

t fra

ud in

refin

ed o

ils –

a m

ajor

con

cern

in

oliv

e oi

l mar

ketin

g, w

here

ext

ra v

irgin

oliv

e oi

ls a

re o

ften

blen

ded

with

refin

ed, c

heap

er o

ils. B

y id

entif

ying

com

poun

ds

that

hel

p re

veal

if re

fined

oil

has

been

add

ed to

virg

in o

il, th

e sc

ient

ists

hav

e de

liver

ed a

n ad

ditio

nal a

naly

tical

tool

to

com

bat a

dulte

ratio

n (s

ee a

lso M

PPU

May

’14

on a

com

para

ble

tool

).

60R&

D –

Oliv

e oi

lDe

cem

ber

Spai

nQ

ualit

y te

st/a

dulte

ratio

n: In

Spa

in, s

cien

tists

are

wor

king

on

a m

etho

d to

gau

ge o

live

oil a

uthe

ntic

ity a

nd q

ualit

y ba

sed

on

adva

nced

fore

nsic

tech

niqu

es. B

y cl

early

iden

tifyi

ng a

nd q

uant

ifyin

g th

e DN

A pr

esen

t in

virg

in o

live

oil,

the

new

tech

niqu

e (k

now

n as

‘dro

plet

dig

ital-P

CR’

) per

mits

rese

arch

ers

and

food

ana

lyst

s to

relia

bly

certi

fy th

e or

igin

and

com

posi

tion

of

any

oliv

e oi

l, th

ereb

y he

lpin

g to

det

ectin

g ad

ulte

ratio

ns. C

onsi

derin

g th

at, i

n gl

obal

oliv

e oi

l tra

de, f

raud

ulen

t pra

ctic

es

grea

tly im

pact

gro

wer

s, p

rodu

cers

and

trad

ers,

the

deve

lopm

ent o

f rel

iabl

e fra

ud-p

reve

ntio

n te

chni

ques

has

bec

ome

of

parti

cula

r rel

evan

ce (s

ee a

lso M

PPU

May

’14

& De

c.’1

6).

61R&

D –

Oliv

e oi

lDe

cem

ber

Spai

nO

live

seed

oil:

A S

pani

sh o

live

com

pany

is w

orki

ng o

n te

chni

ques

to o

ptim

ize o

il ex

tract

ion

from

the

seed

that

is fo

und

insi

de o

live

ston

es (a

s op

pose

d to

the

oil c

onta

ined

in th

e pu

lp o

r in

the

ston

e-hu

sk).

The

chem

ical

com

posi

tion

of o

live

seed

s, p

ulp,

and

sto

ne-h

usk

diffe

rs s

igni

fican

tly, w

ith o

il ex

tract

ed fr

om s

tone

s an

d, in

par

ticul

ar, f

rom

see

ds fe

atur

ing

high

am

ount

s of

pol

yphe

nols

and

ant

ioxi

dant

s. T

he la

tter c

ompo

unds

mak

e ol

ive

seed

oil s

uita

ble

for h

igh-

valu

e pr

oduc

ts

and

appl

icat

ions

in th

e co

smet

ics,

pha

rmac

olog

ical

and

func

tiona

l foo

ds s

ecto

r.

62R&

D –

Dise

ase

cont

rol

Janu

ary

Uni

ted

Stat

esSo

ybea

n di

seas

e: U

S re

sear

cher

s id

entifi

ed a

new

fung

us-b

ased

dis

ease

affe

ctin

g so

ybea

ns in

Mis

siss

ippi

Sta

te. N

amed

‘s

oybe

an ta

proo

t dec

line’

, the

dis

ease

can

be

spot

ted

durin

g th

e ve

geta

tive

stag

e an

d ha

s sy

mpt

oms

sim

ilar t

o so

me

othe

r soy

bean

dis

ease

s, in

clud

ing

the

yello

win

g of

leav

es w

hile

the

vein

s st

ay g

reen

. Res

earc

h on

the

orga

nism

cau

sing

th

e di

seas

e is

stil

l on-

goin

g, fo

llow

ing

whi

ch w

ork

on m

anag

ing

the

dise

ase

and

redu

cing

the

asso

ciat

ed y

ield

loss

es w

ill be

initi

ated

.

63R&

D –

Dise

ase

cont

rol

Nov

embe

rU

nite

d St

ates

Soyb

ean

dise

ase

cont

rol:

US

rese

arch

ers

pate

nted

a te

chno

logy

that

cou

ld h

elp

cont

rol t

he s

prea

d of

the

soyb

ean

cyst

nem

atod

e –

a da

nger

ous

pest

foun

d in

mos

t of t

he U

nite

d St

ates

, Sou

th A

mer

ica

and

Asia

. Rep

orte

dly,

the

new

te

chno

logy

allo

ws

to ‘s

ilenc

e’ c

erta

in g

enes

in th

e ne

mat

ode

that

wou

ld s

top

it fro

m re

prod

ucin

g. A

s th

e te

chno

logy

re

quire

s th

e ge

netic

mod

ifica

tion

of s

oybe

ans,

it w

ill ha

ve to

und

ergo

regu

lato

ry s

crut

iny

befo

re it

is m

ade

com

mer

cial

ly

avai

labl

e.

64R&

D –

Oilm

eals

Febr

uary

Uni

ted

Stat

esRa

pese

ed v

s. s

oybe

an m

eal:

In th

e U

nite

d St

ates

, a p

ublic

-priv

ate

rese

arch

pro

ject

eva

luat

ed th

e m

erits

of d

iffer

ent

prot

ein

supp

lem

ents

ava

ilabl

e in

cat

tle d

iets

. Acc

ordi

ng to

the

test

s con

duct

ed, c

onve

ntio

nal r

apes

eed

mea

l sup

plem

ents

re

sulte

d in

mor

e m

ilk a

nd m

ilk p

rote

in p

rodu

ctio

n pe

r day

than

soy

bean

mea

l. Ra

pese

ed m

eal s

uppl

emen

ts a

re a

rela

tivel

y ne

w o

ptio

n th

at s

tarte

d be

ing

used

as

prot

ein

sour

ce fo

r cat

tle w

hen

new

var

ietie

s w

ere

deve

lope

d. R

epor

tedl

y, pe

r uni

t of

pro

tein

, con

vent

iona

l rap

esee

d m

eal c

osts

abo

ut th

e sa

me

as s

tand

ard

soyb

ean

mea

l.

65R&

D –

Oilm

eals

Febr

uary

Uni

ted

Stat

esH

igh-

prot

ein

low

-fibr

e so

ymea

l: In

the

Uni

ted

Stat

es, a

priv

ate

join

t ven

ture

pre

sent

ed a

new

soy

pro

tein

con

cent

rate

m

eant

to b

e us

ed a

s lo

w-c

ost r

epla

cem

ent f

or fi

shm

eal i

n th

e di

ets

of y

oung

pig

s, y

oung

pou

ltry

and

fish,

whi

ch re

quire

a

high

-pro

tein

/low

-fibr

e di

et. S

oybe

ans

natu

rally

con

tain

fibr

es a

nd c

ompl

ex s

ugar

s w

hich

inhi

bit n

utrie

nt a

bsor

ptio

n in

an

imal

s th

at h

ave

a si

ngle

-cha

mbe

red

stom

ach.

Rep

orte

dly,

the

conc

erne

d co

mpa

nies

dev

elop

ed a

cos

t-com

petit

ive

prop

rieta

ry w

ater

and

enz

ymat

ic tr

eatm

ent t

o re

mov

e th

e in

dige

stib

le c

ompo

nent

s. L

ives

tock

and

aqu

acul

ture

feed

ing

trial

s ar

e be

ing

cond

ucte

d to

val

idat

e pr

oduc

t cla

ims.

66R&

D –

Oilm

eals

Dece

mbe

rU

nite

d St

ates

Soyb

ean

mea

l in

aqua

cultu

re:

In th

e U

nite

d St

ates

, the

soy

bean

indu

stry

is s

uppo

rting

the

deve

lopm

ent o

f an

impr

oved

so

ybea

n m

eal f

or u

se in

the

aqua

cultu

re s

ecto

r. Re

sear

cher

s ar

e fo

cusi

ng o

n an

enz

yme

treat

men

t, w

hich

– w

ithou

t da

mag

ing

the

amin

o ac

ids

– re

duce

s th

e am

ount

of

anti-

nutri

tiona

l fac

tors

tha

t im

pair

fish

dige

stio

n. In

itial

fee

ding

st

udie

s su

gges

t tha

t hig

h in

clus

ion

leve

ls o

f the

mod

ified

mea

l in

fish

diet

s is

pos

sibl

e w

ithou

t dec

reas

ing

perfo

rman

ce.

The

new

mea

l is

said

to re

mai

n si

mila

r to

conv

entio

nal p

rodu

ce w

ith re

gard

to it

s ph

ysic

al p

rope

rties

.

50 Oilcrops complex: Policy changes and industry measures - Annual compendium 2016

No.

Dom

ain

Mon

thC

ount

ryD

escr

iptio

n *

67R&

D –

Tran

s fa

tsO

ctob

erG

loba

lTr

ans

fat-f

ree

hydr

ogen

atio

n: T

rans

fatty

aci

ds d

evel

op w

hen

vege

tabl

e oi

ls a

re h

ydro

geni

zed

to in

crea

se th

eir s

tabi

lity.

As tr

ans

fats

are

kno

wn

to b

e ha

zard

ous

to h

uman

hea

lth, n

umer

ous

coun

tries

hav

e re

gula

ted

thei

r pre

senc

e in

food

ch

ains

(se

e M

PPU

Dec

.’09,

Jun

e’13

, Ju

ly/Se

p.’1

5, a

nd F

eb.’1

6).

Acco

rdin

g to

indu

stry

sou

rces

, a

trans

fat

-free

oil

proc

essi

ng te

chni

que

has

now

bee

n de

velo

ped

and

is re

ady

to b

e us

ed b

y a

glob

al a

grib

usin

ess

and

food

com

pany

. The

ne

w te

chno

logy

, whi

ch is

bas

ed o

n en

zym

atic

inte

rest

erifi

catio

n, is

des

crib

ed a

s a

heal

thy

and

mor

e effi

cien

t alte

rnat

ive

to p

artia

l hyd

roge

natio

n. A

llege

dly,

the

new

met

hod

prod

uces

zer

o tra

ns fa

tty a

cids

, req

uire

s fe

wer

pro

cess

ing

step

s an

d oc

curs

nat

ural

ly a

t a lo

wer

, ene

rgy

savi

ng te

mpe

ratu

re –

whi

le a

lso

enha

ncin

g th

e st

abilit

y of

edi

ble

oils

.

68R&

D –

Tran

s fa

tsDe

cem

ber

Uni

ted

Stat

esTr

ans

fat-f

ree

hydr

ogen

atio

n: A

gro

up o

f sci

entis

ts in

the

Uni

ted

Stat

es c

laim

s to

hav

e de

velo

ped

a no

vel t

echn

ique

to

hydr

ogen

ate

vege

tabl

e oi

ls w

hich

doe

s no

t pro

duce

unh

ealth

y tra

ns fa

tty a

cids

. Con

vent

iona

l hyd

roge

natio

n pr

oces

ses

(whi

ch a

re e

ssen

tial f

or th

e st

abiliz

atio

n of

veg

etab

le o

ils) g

o ha

nd in

han

d w

ith th

e ge

nera

tion

of tr

ans

fats

. Rep

orte

dly,

the

new

tec

hniq

ue, n

amed

Hig

h-vo

ltage

Atm

osph

eric

Col

d Pl

asm

a (H

VAC

P) h

ydro

gena

tion,

rel

ies

on a

hig

h-vo

ltage

el

ectri

cal c

urre

nt t

o sp

lit h

ydro

gen

mol

ecul

es. C

urre

ntly,

the

tea

m o

f res

earc

hers

is in

vest

igat

ing

met

hods

to

redu

ce

hydr

ogen

atio

n tim

e fro

m s

ever

al h

ours

to a

cou

ple

of m

inut

es.

69O

VERS

EAS

INVE

STM

ENT

Janu

ary

Chi

naG

loba

l tra

de:

Afte

r acq

uirin

g, in

201

4, a

51-

perc

ent s

take

in th

e ag

ribus

ines

s un

it of

glo

bal t

radi

ng fi

rm N

oble

Gro

up

(see

MPP

U M

ay’1

4), C

hina

’s st

ate-

owne

d gr

ain

trade

r and

pro

cess

or C

OFC

O is

now

exp

ecte

d to

acq

uire

Nob

le A

gri’s

re

mai

ning

49

perc

ent s

take

– a

mov

e m

eant

to c

onso

lidat

e th

e co

untry

’s pr

esen

ce in

inte

rnat

iona

l gra

in a

nd o

ilsee

ds

mar

kets

.

70O

VERS

EAS

INVE

STM

ENT

Dece

mbe

rC

hina

/Ka

zakh

stan

Glo

bal t

rade

: In

Kaz

akhs

tan,

a C

hine

se c

ompa

ny o

pene

d an

oils

eed

proc

essi

ng fa

cilit

y in

par

tner

ship

with

a lo

cal fi

rm.

The

join

t ven

ture

was

set

up

to s

uppl

y ve

geta

ble

oil t

o C

hina

and

ther

efor

e co

mpl

emen

ts e

arlie

r effo

rts b

y C

hina

– g

iven

do

mes

tic p

rodu

ctio

n co

nstra

ints

– t

o ra

ise

the

coun

try’s

pres

ence

in in

tern

atio

nal m

arke

ts a

nd fo

ster

dire

ct p

rodu

ct

sour

cing

(see

also

MPP

U N

ov.’1

4 &

Feb.

’16)

. Kaz

akhs

tan,

on

the

othe

r han

d, w

elco

med

Chi

nese

inve

stm

ents

into

the

coun

try’s

food

indu

stry

as

a m

eans

to d

iver

sify

its

min

eral

oil-

depe

nden

t eco

nom

y.

71O

VERS

EAS

INVE

STM

ENT

Dece

mbe

rM

alay

sia/

Philip

pine

sPu

blic

-priv

ate-

partn

ersh

ip:

Und

er P

IOPI

C –

a b

ilate

ral p

ublic

-priv

ate

partn

ersh

ip fo

r the

dev

elop

men

t of t

he P

hilip

pine

oi

l pal

m in

dust

ry –

a g

roup

of M

alay

sian

com

pani

es is

set

to d

evel

op 1

20 0

00 h

ecta

res

of o

il pla

ntat

ion

in th

e Ph

ilippi

nes’

M

inda

nao

regi

on. R

epor

tedl

y, th

e in

vest

men

t will

incl

ude

the

train

ing

of fa

rmer

s, th

e co

nstru

ctio

n of

mills

incl

udin

g bi

ogas

pl

ants

, and

bas

ic in

frast

ruct

ure

wor

ks.

72TR

ANSP

ORT

IN

FRAS

TRU

CTU

REJa

nuar

yBr

azil

Expo

rt en

hanc

emen

t: In

depe

nden

t obs

erve

rs p

oint

ed o

ut th

at th

e on

-goi

ng e

xpan

sion

of B

razil

’s so

ybea

n an

d m

aize

ex

ports

was

faci

litat

ed b

y re

cent

impr

ovem

ents

in th

e co

untry

’s po

rt in

frast

ruct

ure.

Impr

ovem

ents

mai

nly

conc

ern

the

so-c

alle

d ‘A

rco

Nor

te’ (

Nor

ther

n Ar

c), w

hich

com

pris

es ri

ver p

orts

on

the

Amaz

on a

nd s

ea p

orts

on

the

coun

try’s

north

ern

Atla

ntic

coa

st (s

ee al

so M

PPU

May

’14

& Se

p.’1

5). A

fter m

ajor

priv

ate

inve

stm

ents

add

ed c

apac

ity a

t sev

eral

rive

r ter

min

als,

ba

rge

haul

sys

tem

s an

d co

asta

l por

ts, s

hipm

ents

via

the

north

ern

expo

rt co

rrido

r are

est

imat

ed to

hav

e ex

pand

ed b

y 50

per

cent

in 2

015,

sig

nific

antly

relie

ving

the

burd

en o

n hi

ghly

con

gest

ed s

outh

boun

d hi

ghw

ays

and

over

crow

ded

ports

al

ong

Braz

il’s s

outh

ern-

east

ern

and

sout

hern

coa

st. R

epor

tedl

y, sh

ippi

ng g

rain

s an

d oi

lsee

ds fr

om M

ato

Gro

sso

and

othe

r C

entre

-Wes

t/Nor

thea

st s

tate

s th

roug

h th

e Ar

co N

orte

(rat

her

than

thro

ugh

the

tradi

tiona

l sou

ther

n ro

utes

) cut

s tra

nspo

rtatio

n co

sts

by 3

5–45

per

cent

. Mar

ket o

bser

vers

reck

on th

at th

ere

is ro

om fo

r Arc

o N

orte

exp

orts

to in

crea

se

furth

er in

201

6, p

rovi

ded

the

fede

ral g

over

nmen

t com

plet

ed a

num

ber o

f crit

ical

road

and

rail

links

. Thi

s co

ncer

ns in

pa

rticu

lar h

ighw

ay B

R-16

3 co

nnec

ting

Mat

o G

ross

o to

two

Amaz

on b

arge

term

inal

s, M

iritit

uba

and

Sant

arem

, whe

re

addi

tiona

l cap

acity

is s

aid

to b

e al

read

y av

aila

ble.

In th

is re

gard

, ind

ustry

repr

esen

tativ

es e

xpre

ssed

con

cern

that

, und

er

the

coun

try’s

curre

nt e

cono

mic

cris

is, p

ublic

spe

ndin

g fo

r tra

nspo

rt in

frast

ruct

ure

coul

d be

sev

erel

y cu

t, w

hich

wou

ld

slow

dow

n th

e ex

pans

ion

in a

gric

ultu

ral e

xpor

ts.

Oilcrops complex: Policy changes and industry measures - Annual compendium 2016 51

No.

Dom

ain

Mon

thC

ount

ryD

escr

iptio

n *

73TR

ANSP

ORT

IN

FRAS

TRU

CTU

REFe

brua

ryBr

azil

Wat

erw

ay m

anag

emen

t: B

razil

’s Ti

etê-

Para

ná w

ater

way

, a k

ey t

rans

port

corri

dor

for

agric

ultu

ral p

rodu

cts

(incl

udin

g so

ybea

ns) r

e-op

ened

afte

r a

20-m

onth

clo

sure

cau

sed

by a

pro

long

ed d

roug

ht (s

ee M

PPU

Feb

.’15)

. The

reo

peni

ng

follo

wed

rece

nt ra

ins

that

rais

ed w

ater

leve

ls o

f riv

ers

situ

ated

in s

outh

ern

and

cent

ral-w

este

rn s

tate

s. D

urin

g th

e cl

osur

e,

farm

pro

duct

s fro

m s

ever

al k

ey fa

rmin

g st

ates

had

to b

e di

verte

d to

mor

e ex

pens

ive

road

and

rail

netw

orks

.74

TRAN

SPO

RT

INFR

ASTR

UC

TURE

July

Braz

ilEx

port

enha

ncem

ent:

Mat

o G

ross

o st

ate

offici

als

deem

impr

oved

tran

spor

t opt

ions

via

Bra

zil’s

north

ern

expo

rt co

rrido

rs

(the

so-c

alle

d ‘A

rco

Nor

te’)

to b

e th

e m

ain

driv

ing

forc

e be

hind

the

on-g

oing

exp

ansi

on o

f soy

bean

pla

ntin

gs in

the

stat

e.

The

impr

ovem

ents

con

sist

of r

oad

upgr

ades

that

pro

vide

dire

ct a

cces

s to

new

term

inal

s on

the

Amaz

on R

iver

and

to

seap

orts

alo

ng t

he n

orth

ern

Atla

ntic

coa

st. T

hese

nor

thbo

und

rout

es r

educ

e th

e st

ate’

s ne

ed t

o sh

ip g

rain

s th

roug

h th

e hi

ghly

con

gest

ed s

outh

boun

d hi

ghw

ays

to d

ista

nt p

orts

on

Braz

il’s s

outh

east

ern

and

sout

hern

coa

st (

see

also

M

PPU

Feb

.’16)

. Acc

ordi

ng to

indu

stry

est

imat

es, i

n 20

16, a

reco

rd 3

4 pe

rcen

t of M

ato

Gro

sso’

s so

ybea

n sh

ipm

ents

will

trans

it th

roug

h th

e Ar

co N

orte

, with

the

rem

aini

ng 6

6 pe

rcen

t hea

ding

sou

th. I

n 20

14, t

he c

orre

spon

ding

sha

res

wer

e,

resp

ectiv

ely,

18 a

nd 8

2 pe

rcen

t.75

MAR

KETS

& F

INAN

CE

May

Chi

naRa

pese

ed m

eal f

utur

es m

arke

ts:

The

Zhen

gzho

u C

omm

odity

Exc

hang

e ra

ised

its

trans

actio

n fe

es fo

r som

e in

stitu

tiona

l in

vest

ors

for r

apes

eed

mea

l fut

ures

con

tract

s, e

ffect

ive

13 M

ay 2

016.

76M

ARKE

TS &

FIN

ANC

EM

ayU

nite

d St

ates

Soyb

ean

futu

res

mar

kets

: Th

e C

ME

Gro

up ra

ised

the

max

imum

dai

ly p

rice

chan

ge p

erm

itted

on

soyb

ean

cont

ract

s by

5

US

cent

s to

65

US

cent

s pe

r bus

hel.

The

new

pric

e lim

it ha

s co

me

into

effe

ct o

n 20

Apr

il 20

16.

77M

ARKE

TS &

FIN

ANC

EJu

nePh

ilippi

nes

Loan

pro

gram

me

- coc

onut

: Re

porte

dly,

in 2

015,

a P

hilip

pine

priv

ate

bank

form

ed in

199

4 w

ith th

e sp

ecifi

c pu

rpos

e of

ch

anne

lling

cred

it to

coc

onut

farm

ers,

pro

vide

d lo

ans

wor

th P

HP

609.

8 m

illion

(USD

13.

2 m

illion

) to

som

e 18

000

sm

all

coco

nut

farm

ers

in 6

6 ou

t of

the

cou

ntry

’s 68

coc

onut

pro

vinc

es.

The

loan

s fin

ance

d liv

elih

ood

activ

ities

of

smal

l ho

useh

olds

, in

clud

ing

villa

ge-b

ased

pro

cess

ing

of c

ocon

ut b

y-pr

oduc

ts,

cash

cro

p cu

ltiva

tion,

liv

esto

ck r

aisi

ng,

and

mar

ketin

g pr

ojec

ts.

To b

e ab

le t

o se

rve

rem

ote

coco

nut

area

s, t

he b

ank

partn

ered

with

far

mer

s/fa

rm w

orke

rs

orga

niza

tions

, NG

Os

and

rura

l fina

ncia

l ins

titut

ions

. The

ban

k ai

ms

at ra

isin

g its

tota

l len

ding

vol

ume

to P

HP

710

milli

on

(USD

15.

4 m

illion

) in

2016

.78

MAR

KETS

& F

INAN

CE

June

Uni

ted

Stat

esPa

lm o

il fut

ures

mar

ket:

Chi

cago

-bas

ed c

omm

odity

exc

hang

e C

ME

form

ed a

par

tner

ship

with

Bur

sa M

alay

sia D

eriva

tives

an

d Th

omso

n Re

uter

s to

ext

end

its a

gric

ultu

ral p

rodu

cts

by a

ddin

g fo

ur n

ew p

alm

oil

cont

ract

s –

Mal

aysi

an c

rude

pal

m

oil a

nd p

alm

ole

in c

alen

dar f

utur

es, M

alay

sian

cru

de p

alm

oil

aver

age

pric

e op

tions

, and

Bur

sa M

alay

sia

crud

e pa

lm o

il-ga

soil

spre

ad fu

ture

s. T

he m

ove

is m

eant

to o

ffer c

usto

mer

s in

crea

sed

flexi

bilit

y an

d effi

cien

cy in

man

agin

g ex

posu

re to

pr

ice

vola

tility

in p

alm

oil

mar

kets

.79

MAR

KETS

& F

INAN

CE

Oct

ober

Uni

ted

Stat

esSo

ybea

n fu

ture

s m

arke

t: T

he C

ME

Gro

up in

form

ed t

hat,

from

1 N

ovem

ber

2016

, the

max

imum

dai

ly p

rice

chan

ge

perm

itted

on

soyb

ean

cont

ract

s at

CBO

T is

70

US

cent

s pe

r bu

shel

– u

p 5

US

cent

s fro

m t

he li

mit

in p

lace

sin

ce

April

201

6. T

he n

ew li

mit

will

rem

ain

in e

ffect

unt

il M

ay 2

017.

80M

ARKE

TS &

FIN

ANC

EN

ovem

ber

Tuni

sia

Loan

pro

gram

me

- ol

ive:

Th

e Eu

rope

an B

ank

for

Reco

nstru

ctio

n an

d De

velo

pmen

t (E

BRD)

is le

ndin

g EU

5 m

illion

(U

SD 5

.3 m

illion

) to

Tuni

sia’

s ol

ive

oil i

ndus

try t

o su

ppor

t th

e se

ctor

’s de

velo

pmen

t an

d pr

omot

e th

e ex

porta

tion

of

bottl

ed o

il. T

unis

ia is

the

wor

ld’s

fifth

larg

est p

rodu

cer o

f oliv

e oi

l and

rank

s th

ird a

mon

g ex

porte

rs. C

urre

ntly,

mos

t of t

he

coun

try’s

prod

uctio

n is

exp

orte

d in

bul

k. E

nd-c

onsu

mer

s te

nd to

be

unaw

are

of th

e pr

oduc

t’s o

rigin

bec

ause

, typ

ical

ly,

oliv

e oi

l fro

m T

unis

ia is

ble

nded

with

oth

er o

rigin

s, in

par

ticul

ar It

alia

n an

d Sp

anis

h ol

ive

oils

. By

prom

otin

g th

e bo

ttlin

g of

oliv

e oi

l in

Tuni

sia,

EBR

D w

ants

to c

reat

e a

valu

e ad

ded

prod

uct t

hat o

ffers

hig

her e

cono

mic

retu

rns

and

help

s th

e co

untry

bui

ld a

bra

nd.

52 Oilcrops complex: Policy changes and industry measures - Annual compendium 2016

No.

Dom

ain

Mon

thC

ount

ryD

escr

iptio

n *

81M

ARKE

TS &

FIN

ANC

EN

ovem

ber

Uni

ted

Stat

esSo

ymea

l fut

ures

mar

ket:

The

CM

E G

roup

info

rmed

of a

redu

ctio

n in

the

prot

ein

cont

ent f

or it

s so

ymea

l fut

ures

con

tract

by

0.5

per

cent

, to

47.5

per

cent

, as

of 1

5 De

cem

ber

2016

. Del

iver

ies

agai

nst

the

cont

ract

will

be a

ccep

ted

up t

o a

min

imum

of 4

7.0

perc

ent.

The

dow

nwar

d ad

just

men

t was

mad

e to

refle

ct th

e de

crea

sing

pro

tein

con

tent

of U

S-gr

own

soyb

eans

.

82

MAR

KETS

& F

INAN

CE

Dece

mbe

rC

hina

Soym

eal f

utur

es m

arke

t: C

hina

’s se

curit

ies

regu

lato

r ha

s ap

prov

ed t

he la

unch

by

the

Dalia

n C

omm

odity

Exc

hang

e of

soy

bean

mea

l opt

ions

. Cur

rent

ly, th

e ex

chan

ge is

see

king

pub

lic c

omm

ents

on

cont

ract

spe

cific

atio

ns a

nd re

late

d is

sues

. Rep

orte

dly,

follo

win

g th

e su

cces

sful

laun

ch o

f fut

ures

con

tract

s fo

r oils

eeds

, oils

and

mea

ls in

201

5, in

dust

ry

play

ers

calle

d fo

r the

intro

duct

ion

of o

ptio

ns c

ontra

cts

as a

n ad

ditio

nal r

isk

man

agem

ent t

ool.

Agric

ultu

ral o

ptio

ns a

re

exte

nsiv

ely

used

by

farm

ers

and

inve

stor

s in

the

Uni

ted

Stat

es a

nd E

urop

e.

* 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)’,

w

hich

can

be

retri

eved

on-

line

at h

ttp://

ww

w.fa

o.or

g/ec

onom

ic/e

st/p

ublic

atio

ns/o

ilcro

ps-p

ublic

atio

ns/m

onth

ly-p

rice-

and-

polic

y-up

date

/en/

.

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 provides access to an electronic, searchable archive and explanations on how to subscribe to a dedicated mailing list.

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 fournit également un accès à une archive électronique et explique comment s’abonner à la liste de diffusion dédiée.

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 da acceso a un archivo electrónico de búsqueda y facilita instrucciones sobre cómo suscribirse a una lista de correo especializada.

CONTACT CONTACT CONTACTO

Peter.Thoenes@fao.org

I7057EN/1/04.17

ISBN 978-92-5-109712-0

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