Palm Oil Leads the Way in Sustainable Practices

By

Dato’ Carl Bek-Nielsen

United Plantations Bhd

15th October 2012

U N I T E D P L A N T A T I O N S

B E R H A D

….. Agriculture …..

About 1/3rd of humanity or 2.3bn people are today involved with farming/food production.

It is a huge industry !

Land – a shrinking resource

• In 1960, the average hectare of arable land, globally, supported 2.4 persons

• By 2005 this figure had increased to 4.5 persons per hectare

• By 2050 the estimate by FAO is that a single hectare of land will need support between 6.1-6.4 people

• Obviously, each piece of land will have to produce more food

Source: FAO 2011

Hard facts

9.3 2.3bn growth

1 bn hungry

3.3bn extra mouths to feed

• FAO : “ 70% more food needs to be produced by 2050 in order to ensure adequate food supplies for a world population expected to reach 9.3bn by 2050”

• …….this puts things in perspective ……and… …agriculture under pressure.

Source: FAO 2011

World Hunger & Food production

TOTAL AVAILABLE LANDBANK AS OF 2011 – 4.9 BILLION HA

Source: Oil World 2012; FAO 2011

Used land Total landbank

30%

The Big Picture

• 98% of all food comes from land

• 15 crops provide roughly 90% of calories consumed by humans

• Globally 1.5 bn Ha of land is used for agriculture today

• The Oil Palm occupies <1% of this area

TOTAL AVAILABLE LANDBANK AS OF 2011 – 4.9 BILLION HA

Source: Oil World 2012; FAO 2011

Oil Palm Total Planted AreaUsed land Total landbank

30% 0.96%

TOTAL PLANTED AREA UNDER AGRICULTURE AS OF 2011 - 1.5 BILLION HA

31% of the world’s oils & fats

The Big Picture

Items to Avoid … Palm Oil http://www.orangutan.com/itemstoavoid/itemstoavoid.htm (29/8/2002)

Palm oil is found in many foods. Check the labels carefully. Many doctors recommend using olive oil, canola oil or other polyunsaturated fats for health reasons, and you may find these to be not only more healthful but also more environmentally sound products to consume

• Help us to help the projects that are out there right now, working in the field to protect orangutans

the “boogeyman”-oil the “Frankenstein” crop ……the main cause of most sins…is this true?

Palm Oil and Deforestation

“Every hour 300 football fields of rainforests are cleared for oil palm plantations” various NGOs

About 3% (9.17million Ha)

However, in return this accounted for 42 % of the net growth in the 17 Oils & Fats produced from 1990-2010.

..How much of the 300 million Ha of deforestation did oil palm plantations account for ?

… The oil palm is amongst the 10 most essential agricultural crops grown today …

…the challenge: to grow this crop even more sustainably and to comply with one of the world’s most stringent criteria for sustainability…..RSPO

Economy

Environment

Society

Sustainable

development

Social

responsibility

Economic

viability

Environmental

compatibility

Criteria for Sustainability

…criteria that are endorsed by 26 NGOs

0.5 0.4 0.7

4.15

5.86

0

1

2

3

4

5

6

7

Cotton Oil Soy Oil Rape Oil Oil Palm UP Group

MT Vegetable Oil Yields/Ha

40% higher yields per land unit…

= 40% less land requirement

… producing more with less is a vital part of sustainable agricultural production …

Society

\

Places of Worship

TEMPLE

MOSQUE

CHURCH

Creche

Bernam Bakery

Group Hospital

X-Ray Ward

Old Folks Home

Environmental Compatibility

Integrated Pest Management

Nektar- & beneficial flowering plants attract predators

Asopinid Bug Predating on Leaf-Eating Caterpillar

Pheromone traps for rhinoceros beetles

Rat control using barn-owls

• One barn owl box per 20 Ha

• There are 2000 owl-pairs on U.P

• One owl pair consumes up to 800 rats per year

• ~ 1.5 million rats are devoured every year !

Leopard Cats

A possible rodent controller ?

Embracing methane capture via biogas plants

Investments in newer technology can help reduce our addiction to fossil fuels

Organic steam & green electricity

Residual fiber & palm biomass

2 MW steam-turbine

1000

C i furnace

… today United Plantations has more than 10% of its total area set as aside as jungle sanctuaries…..

..but are we competent enough to manage this ?

• …no……much more can be done….but how and with who ?

• “ If you have knowledge let others light their candle in it”

• Cooperation with Copenhagen Zoo

…but why take the trouble…?

• UP was the 1st company in the world to comply with the RSPO P&C in 2008,…..is this enough ?

• …..Common goal: to “Raise the

bar” ….. beyond the RSPO • To show that conservation can

go “hand in hand” with development

• Implementation – requires

resources, dedication and …lots of money $$$

Conclusion

The right towards development… for all of mankind

20% of the world’s population consumes 80% of its raw materials

Uneven distribution of resources

Conservation means development as much as it does protection

…embracing the RSPO’s P&C on sustainability within

the palm oil sector is the way forward

Thank you for your attention

U N I T E D P L A N T A T I O N S B H D