Oilcrops complex: Policy changes and industry measures - Annual compendium 2017 1

2017

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, 2018

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 — 2017

FILIÈRE OLÉAGINEUSES évolution des politiques et des mesures sectorielles

Recuei l annuel — 2017

OILCROPS COMPLEX policy changes and industry measures

Annual compendium — 2017

First edition/Première édition/Primera edición: April/avril/abril 2018Second edition (revised)/deuxième édition, révisée/segunda edición, revisada: May/mai/mayo 2018

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Contents

Table de matières

Índice

Oilcrops complex: Policy changes and industry measures - Annual compendium 2017 Filière oléagineuses: Évolution des politiques et des mesures sectorielles - Recueil annuel 2017

Sector oleaginosas: Cambios de políticas y de medidas del sector industrial - Compendio anual 2017

iii

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exel

s

Introduction iv

Highlights v

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

Table 2. Government policies implemented in 2017 2-46

Table 3. Industry measures and initiatives reported in 2017 47-62

Introduction ix

Faits saillants x

Articles détaillés:

Tableau 1. Vue d'ensemble des domaines traités 1

Tableau 2. Politiques publiques mises en œuvre en 2017 2-46

Tableau 3. Mesures et initiatives sectorielles recensées en 2017 47-62

Introducción xiv

Aspectos más destacados xv

Noticias detalladas: Cuadro 1. Panorama de temas cubiertos 1

Cuadro 2. Políticas gubernamentales aplicadas en 2017 2-46

Cuadro 3. Medidas e iniciativas del sector industrial en 2017 47-62

iv Oilcrops complex: Policy changes and industry measures - Annual Compendium 2017

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 2017.

The compendium reproduces, in tabular form, all the policy and industry news items published throughout 2017 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 F. Greb, G. Karumathy and M. Milo. Support from E. Vecchione who formatted this report is gratefully acknowledged.

©/Alamy.com

Oilcrops complex: Policy changes and industry measures - Annual Compendium 2017 v

Highlights

NATIONAL POLICIES

In what follows, the most relevant policy changes and trends observed in 2017 are summarized below in bullet form. More detailed information is available in the ensuing tables (available in English only).

Production support: China continued implementing production support policies aimed to trim maize production (along with reforms of the country’s grain reserve system), while encouraging the cultivation of soybeans, rapeseed and other land uses, including fallow periods. To raise the efficiency of its farm support schemes, the country replaced its target price system for soybeans – in place until 2016 – by per hectare payments de-coupled from market prices. In India, minimum support prices for oilcrops saw the customary upward adjustments, but farmers and industry associations maintained that the increases were insufficient to offset higher production costs and stressed that public market interventions remained too small to support the government-set prices. To address situations of rural distress caused by weak commodity prices, a number of compensation schemes were launched at state level. Also other countries maintained their production support programmes, mainly relying on direct payments to farmers and subsidized loan schemes. Brazil also raised its outlays for crop insurance schemes (for the second year in succession), while Indonesia launched a public oil palm rejuvenation programme focused on small growers.

Sector development: Several countries, primarily in the Asia-Pacific region, implemented a variety of sector development measures, targeting in particular coconut and, to a lesser extent, soybean and oil palm production. Typically, these measures were aimed at: i) reducing a country’s import dependence; ii) meeting growing domestic demand; iii) fostering local value addition and raising export earnings; and iv) promoting more sustainable and resilient agricultural systems or pursuing other long-term development objectives. While most initiatives focused on boosting production, strategies to achieve this differed widely and included area expansion, distribution of high-yielding seeds, plantation rejuvenation, promotion of new cultivation methods, and price guarantees.

Pest control measures: In Canada, the EU and the United States, Glyphosate, a widely used but “possibly carcinogenic” herbicide, came under scrutiny, but all three countries concluded that the chemical is not likely to pose health risks. The EU, however, renewed the product’s authorization only for an abbreviated period of five (instead of the customary fifteen) years. Another herbicide, Dicamba, received particular attention from policymakers in the United States for its potentially negative effects on non-resistant crops, triggering state-specific restrictions as well as agreements with manufacturers on protective measures. In the EU, a bacterial infection affecting olive trees remained of concern, prompting renewed efforts to improve early detection, prevention and disease control measures.

Market regulation: Although featuring less prominently in 2017 than in the previous year, a number of countries adjusted price control measures aimed at supporting producers or consumers. Changes in value-added taxes also continued to be used as a policy instrument. Public procurement, stockholding and stock disposal of oilcrops remained in place in China (where public sales of soybeans and rapeseed oil from state reserves shrank compared to previous years, in tandem with the gradual phasing-out of government purchases) as well as in India, Indonesia and Sri Lanka. While India scaled up and streamlined its public procurement operations, overall, interventions remained localized and intermittent. Canada renewed provisions to protect farmers from surges in domestic shipping costs.

Food standards: Consistent with similar efforts elsewhere, Canada banned partially hydrogenated oils – the main source of harmful trans fats – from the country’s food chain. Thailand considered to follow suit. In India, a limit on trans fat content has become effective and labelling mandatory. Thresholds for certain types of fat and explicit health claims on product labels also received attention in the United States and Peru. Furthermore, a number of countries introduced food safety measures specifically targeted at vegetable oil adulteration. At the international level, the FAO/WHO Codex Alimentarius Commission issued its first (non-binding) standard concerning fish oil, in addition to deliberating on modifications to a number of other, existing standards concerning oilcrops and derived products.

vi Oilcrops complex: Policy changes and industry measures - Annual Compendium 2017

GMO policies: Under broader efforts to facilitate trade with the United States, China renewed the import approval for feed use for seven GM oilseed varieties and granted it for two new ones. The EU and Turkey also authorized the importation of new GM varieties, again exclusively for consumption purposes (i.e. not for cultivation). While Argentina cleared the cultivation of one new GM soybean variety, India further postponed the approval of a locally developed GM mustard seed representing the country’s first GM food crop. On the other hand, Mexico revoked an earlier approval of a GM soybean after detecting unauthorized use. Australia considered compensation of farmers losing their GM-free or organic certification due to GM-rapeseed contamination. As for mandatory labelling of GM content in food products, Canada’s lawmakers rejected corresponding proposals – contrary to the United States, where new regulations to such effect are set to come into force in 2018.

Biofuel policies: A number of countries (comprising Argentina, Indonesia, Thailand and the United States) made adjustments to their biofuel support programmes, while others (Brazil, Canada, the EU and the United Kingdom) embarked on comprehensive reviews of their existing bioenergy policies. The EU remained committed to its cap on crop-based biofuels (which include vegetable oil-based diesel), while progressively replacing them with “second-generation” biofuels. Indonesia continued subsidizing producers of palm-based diesel, but considered spreading subsidies across a larger volume with a view to further stimulate domestic production. Thailand continued modulating its mandatory blending rate in an attempt to stabilize the domestic palm oil price. Argentina suspended its export duty on biodiesel to raise the competitiveness of its exports. The United States considered to either freeze or lower her bioenergy consumption targets for 2018 and 2019, but eventually opted for a marginal rise in the “advanced biofuels” target, which applies to biodiesel. Meanwhile, US lawmakers did not deliberate on the proposed retroactive renewal of the country’s biodiesel tax credit that expired at the end of 2016.

Trade policy measures: Aimed at protecting the interests of domestic producers and consumers, Indonesia’s and Malaysia’s sliding export tax regimes for palm oil remained in place. At the same time, Argentina, Bolivia and India implemented new, non-tariff export promotion measures, while Ukraine’s lawmakers approved a policy change encouraging oil/meal shipments as opposed to oilseed exports.

On the import side, concern with consumer hardship and adequate domestic supplies (including raw material supplies for local processing industries) induced a number of countries to ease trade barriers. Conversely, import barriers were raised elsewhere, especially in India, to protect local farmers and encourage domestic production, but also in a bid to support domestic processors and refiners. Whereas China postponed the implementation of a general non-tariff barrier for bulk vegetable oil imports, it announced a tightening in phytosanitary requirements for soybeans imported from the United States. Moreover, China lifted a non-tariff measure on Argentine soybean oil, as part of wide-ranging talks on balancing trade between the two countries.

Several comprehensive bilateral trade agreements were under negotiation or became effective in 2017 – often involving important oilseed–exporting/importing nations, particularly concerning rapeseed. At a global level, a new international agreement on olive oil took effect. 2017 also saw numerous bilateral oilcrop-specific trade initiatives, especially with regard to palm oil, aimed at: i) export promotion (including measures targeting nascent biodiesel industries); ii) meeting import needs; iii) facilitating the transfer of technical know-how (to tap local processing capacity and stimulate local demand); or iv) addressing a variety of non-tariff barriers.

The WTO ruled on a trade dispute between the EU and Indonesia concerning palm oil fatty alcohols, finding only minor violations of WTO regulation. Separately, in response to a WTO ruling from 2016, the EU lifted anti-dumping duties on imports of soy oil-based biodiesel from Argentina, while the United States imposed both anti-dumping and anti-subsidy duties on biodiesel imports from Argentina and Indonesia. Meanwhile, China confirmed the country’s anti-dumping and anti-subsidy duties on distillers dried grains (a soymeal substitute) imported from the United States.

Transport infrastructure: Brazil increased its efforts to improve the country’s storage and transport logistics. Reportedly, both public and private investment helped to significantly improve Brazil’s northern road, fluvial and port infrastructure – resulting in total annual shipment capacity of 40 million metric tonnes of grains and a decongestion of the traditional south-bound shipment routes. Moreover, Brazil and China set up a joint investment fund for infrastructure projects, since addressing transport bottlenecks in Brazil has the potential to reduce significantly shipment costs to China, notably for soybeans.

Oilcrops complex: Policy changes and industry measures - Annual Compendium 2017 vii

INDUSTRY MEASURES

Voluntary private sector standards continued playing an important role in shaping the global oilseed complex and, in particular, international trade in oilcrops, oils and meals

Sustainable production: Industry standards for sustainable palm oil production kept evolving, as evidenced by several fresh initiatives promoting responsible practices along the palm oil value chain. While a number of stakeholders engaged in programmes to train smallholders on sustainable production practices and support their inclusion in certification, several global agri-trade firms renewed their commitments towards “responsible” and traceable sourcing. In some instances, producers undertook to refrain from the development of environmentally fragile peatland or accepted to restore recently developed peat areas. Furthermore, lending institutions pledged to pay increased attention to environmental/social aspects and started screening applicants from the palm oil industry for their sustainability record. Continued pressure from consumer and other civil society groups contributed strongly to these developments.

The RSPO, the globally used and widely recognized industry-led standard-setting/certification body for palm oil, launched a review of its principles and criteria, expecting to adopt a revised, stricter set of standards in late 2018. Meanwhile, compliance issues prompted the RSPO to take action against specific members for allegedly violating the organization’s codes of practice – instances that observers viewed as important test cases for the RSPO’s ability to uphold its own standards and regulations. The extent to which certification actually contributed to limit deforestation remained subject to debate. As for the further diffusion of certification, industry stakeholders pointed to high audit costs – combined with the lack of consumer awareness and sluggish demand for certified oil – as major hurdles. Indeed RSPO estimates suggest that global supplies of certified palm oil continued to exceed actual sales, with roughly half of all certified produce not finding a buyer. In general, demand for certified produce remained concentrated in a relatively small number of developed countries, with only small progress reported from developing nations – notably large importers like India, China or Pakistan. On a positive note, more buyers moved from sourcing certified palm oil through ‘book & claim’ mechanisms to buying through physical supply chains.

Though much less pronounced, sustainability discussions also concerned other oilcrops. Industry groups in Brazil and the EU forged new alliances to develop a dedicated supply chain for “responsible soy”. Furthermore, independent evaluations of Brazil’s soybean moratorium, which bans financing and trading of soybeans grown on illegally cleared land in the Amazon region, suggested that the ban has contributed to more responsible forms of production expansion. Meanwhile, in Asia, a new public-private initiative aimed at establishing a certified sustainable coconut supply chain. Moreover, the Marine Ingredients Organisation, the body representing the global fishmeal/oil and marine ingredients industry, upgraded its global standard for responsible supply of marine raw materials.

Edible oil standards: Several countries reported efforts to improve authentication and origin identification with a view to prevent fraudulent practices and/or enhance export performance.

Production sustainability: The EU embarked in a controversial discussion on the possible restriction – on environmental grounds – of certain vegetable oil imports earmarked for biodiesel production. Similarly, Norway took steps to end procurement of purportedly unsustainably produced biodiesel. The governments of Indonesia and Malaysia challenged these initiatives; they also launched mandatory national certification schemes for palm oil (as opposed to voluntary certification through The Roundtable on Sustainable Palm Oil, RSPO – the globally recognized industry-backed standard setting body for palm oil), citing overly stringent requirements, high certification costs and neglect of smallholders’ concerns. Reportedly, as of December 2017, certification rates and international acceptance levels of the two national schemes were limited. Other noteworthy regulatory measures include Indonesia’s extension of a moratorium aimed at halting deforestation and pollution from forest fires and Peru’s commitment to consult indigenous communities prior to approving palm oil projects that would affect them.

GMO issues: Demand for non-GM soy products has grown further in emerging niche markets in Europe and Asia. Apparently, although non-GM production increased following private investments in dedicated handling and transport facilities, total demand continued to exceed available supplies.

Biofuel measures: As in 2016, various industry initiatives related to biofuels focused on the use of non-edible biodiesel feedstock. These expanded beyond Europe, involving countries in the Americas and Asia-Pacific, often exploring biodiesel production from used cooking oil. In view of global airline CO2 reduction commitments, also aviation-grade vegetable oil-based fuels received increased attention.

International trade: Companies in China announced plans to continue expanding their presence in Brazil, with a view to expanding direct soybean sourcing – a policy complemented by investments in Brazil’s storage and transport infrastructure. Furthermore, Tunisia’s olive oil industry launched a trade promotion programme aiming at the Japanese market.

Markets & finance: To improve price discovery and enhance risk management practices, agricultural commodity exchanges in Asia saw the launch of a soymeal options contract in China as well as castorseed and mustard cake contracts in India. In the United States, the Chicago Board of Trade revised the daily price change limits for soybean/meal contracts, while the EU’s Euronext exchange launched new rapeseed contracts.

Research & Development: Instances of R&D measures concerning oilcrops and derived products appear to have increased considerably in 2017 compared with the previous year. Apart from new oilseed varieties, research focused mainly on product development, covering both food and non-food industrial applications (primarily for soybeans) as well as new feed uses. Developments relevant to disease control included: rapeseed genes resistant to blackleg, a major pest; and soybean rust control strategies in Latin America. Overall, rapeseed featured prominently, accounting for more than a third of all R&D initiatives. High-oleic oilcrop varieties also received a fair amount of attention, given the respective oils’ wholesome health profile, increased shelf-life and high frying capability. Research efforts to improve the yield-potential of the oil palm and coconut palm also continued.

viii Oilcrops complex: Policy changes and industry measures - Annual Compendium 2017

Filière oléagineuses: Évolution des politiques et des mesures sectorielles - Recueil annuel 2017 ix

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 2017.

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 2017 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 F. Greb, G. Karumathy et M. Milo. Le soutien de E. Vecchione, qui a formaté ce rapport, est apprécié.

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x Filière oléagineuses: Évolution des politiques et des mesures sectorielles - Recueil annuel 2017

Faits saillants

Les paragraphes ci-après résument les évolutions des politiques et les tendances les plus pertinentes observées en 2017 sous forme de liste à puces. Des informations plus détaillées sont fournies dans les tableaux qui suivent (disponibles en anglais seulement).

POLITIQUES PUBLIQUES

Soutien à la production: La Chine a continué de mettre en œuvre des politiques de soutien à la production en vue de limiter la production de maïs (en parallèle à la réforme du système de réserves céréalières du pays), et d’encourager la culture de soja, de colza et d’autres utilisations des terres, y compris des périodes de jachère. Pour augmenter l’efficacité de ses programmes de soutien agricole, le pays a remplacé son système de prix cible pour le soja – en vigueur jusqu’en 2016 – par des paiements par hectare dissociés des prix du marché. En Inde, les prix minimum de soutien pour les cultures oléagineuses ont été revus à la hausse comme à l’accoutumée, mais selon les agriculteurs et les associations sectorielles, les augmentations ont été insuffisantes pour compenser la hausse des coûts de production et les interventions du secteur public sur les marchés sont restées trop faibles pour soutenir les prix fixés par les pouvoirs publics. Pour faire face aux situations de détresse rurale causées par la faiblesse des prix des denrées, des régimes d›indemnisation ont été lancés au niveau local. D’autres pays ont également maintenu leurs programmes de soutien à la production, principalement fondés sur des paiements directs aux agriculteurs et des systèmes de prêts subventionnés. Le Brésil a également augmenté ses dépenses pour ses régimes d’assurance-récolte (pour la deuxième année consécutive), tandis que l’Indonésie a lancé un programme public de rajeunissement des plantations de palmier à huile axé tout particulièrement sur les petits producteurs.

Développement du secteur: Plusieurs pays, principalement dans la région Asie-Pacifique, ont mis en œuvre diverses mesures de développement du secteur, ciblant en particulier la noix de coco et, dans une moindre mesure, le soja et le palmier à huile. En général, ces mesures visent à: i) réduire la dépendance d’un pays vis-à-vis des importations; ii) augmenter la demande intérieure; iii) favoriser l’ajout de valeur au niveau local et accroître les recettes d’exportation; et iv) promouvoir des systèmes agricoles plus durables et résilients ou poursuivre d’autres objectifs de développement à long terme. Bien que la plupart des initiatives visent à accroître la production, les stratégies pour y parvenir diffèrent considérablement et s’appuient notamment sur: l’expansion des zones cultivées, la distribution de semences à haut rendement, le rajeunissement des plantations, la promotion de nouvelles méthodes de culture, et des garanties en matière de prix.

Mesures de lutte contre les maladies des plantes: Au Canada, dans l’UE et aux États-Unis, l’utilisation du glyphosate, un herbicide largement répandu mais «potentiellement cancérogène», a été remis en question, mais les trois pays ont conclu que ce produit chimique ne semblait pas présenter de risques pour la santé. Néanmoins, l›UE, n’a renouvelé l’autorisation du produit que pour une période réduite de cinq ans (contre quinze ans habituellement). Un autre herbicide, le dicamba, a fait l’objet d’une attention particulière de la part des décideurs aux États-Unis en raison de ses effets potentiellement négatifs sur les cultures non résistantes, ce qui a abouti à des restrictions dans certains états ainsi qu’à des accords avec les fabricants pour la mise en place de mesures de protection. Dans l’UE, une infection bactérienne affectant les oliviers est restée une source de préoccupation et a donné lieu à un regain d’efforts pour améliorer les mesures de détection précoce, de prévention et de lutte contre la maladie.

Réglementation du marché: Plusieurs pays ont ajusté leurs mesures de contrôle des prix visant à soutenir les producteurs ou les consommateurs, bien que dans une moindre mesure qu’en 2016. Les pays ont également continué de recourir à des variations des taxes sur la valeur ajoutée comme instrument de politique. Les programmes d’achats publics, de stockage et d’écoulement des stocks d’oléagineux sont restés en place en Chine (où les ventes publiques de soja et d’huile de colza en provenance des réserves publiques ont diminué par rapport aux années précédentes, parallèlement à la suppression progressive des achats publics) ainsi qu’en Inde, en Indonésie et au Sri Lanka. Bien que l’Inde ait étendu et rationalisé ses opérations d’achat public, dans l’ensemble, les interventions sont restées localisées et intermittentes. Le Canada a renouvelé ses dispositions visant à protéger les agriculteurs contre les flambées des coûts de transport intérieur.

Filière oléagineuses: Évolution des politiques et des mesures sectorielles - Recueil annuel 2017 xi

Normes alimentaires: Conformément à des initiatives analogues ailleurs, le Canada a interdit les huiles partiellement hydrogénées – la principale source d’acides gras trans nocifs – de la chaîne alimentaire du pays. La Thaïlande envisage de faire de même, alors qu’une obligation d’étiquetage et une limite sur la teneur en acides gras trans sont entrées en vigueur en Inde. Des seuils pour certains types de graisses et des allégations de santé explicites sur les étiquettes des produits ont également fait l’objet d’attention aux États-Unis et au Pérou. En outre, un certain nombre de pays ont adopté des mesures de sécurité sanitaire des aliments spécialement ciblées sur le frelatage des huiles végétales. Au niveau international, la Commission mixte FAO/OMS du Codex Alimentarius a publié sa première norme (non contraignante) sur l’huile de poisson, et a en outre modifié un certain nombre d’autres normes en vigueur portant sur divers graines oléagineuses et leurs produits dérivés.

Politiques en matière d’OGM: Dans le cadre d’efforts plus larges visant à faciliter le commerce avec les États-Unis, la Chine a renouvelé l’autorisation d’importation à des fins d’alimentation animale de sept variétés de graines oléagineuses GM et a accordée une autorisation à deux nouvelles variétés. L’UE et la Turquie ont également autorisé l’importation de nouvelles variétés GM, de nouveau exclusivement à des fins de consommation (c.-à-d. pas à des fins de culture). Alors que l’Argentine a autorisé la culture d’une nouvelle variété de soja GM, l’Inde a encore une fois reporté l’approbation de graines de moutarde GM développées localement, qui représentent la première culture alimentaire GM du pays. En revanche, le Mexique a révoqué l’autorisation précédemment octroyée à un soja GM après la découverte d’utilisations non autorisées. L’Australie envisage d’indemniser les agriculteurs qui ont perdu leurs certifications sans OGM ou biologique en raison d’une contamination par du colza GM. Pour ce qui concerne l’étiquetage obligatoire de la teneur en OGM dans les produits alimentaires, les législateurs du Canada ont rejeté les propositions en la matière – contrairement aux États-Unis, où de nouvelles règlementations à cet effet devraient entrer en vigueur en 2018.

Politiques relatives aux biocarburants: Un certain nombre de pays (y compris l’Argentine, l’Indonésie, la Thaïlande et les États-Unis) ont apporté des modifications à leurs programmes de soutien aux biocarburants, tandis que d’autres (le Brésil, le Canada, l’UE et le Royaume-Uni) ont entamé un examen approfondi de leurs politiques en matière de bioénergie. L’UE est restée fidèle à son plafond en matière de biocarburants d’origine agricole (qui incluent le diesel à base d’huile végétale), tout en favorisant leur remplacement progressif par des biocarburants «de deuxième génération». L’Indonésie a continué de subventionner les producteurs de diesel à base d’huile de palme, mais envisage de répartir ces subventions sur de plus grands volumes en vue de stimuler davantage la production nationale. La Thaïlande a continué de moduler son taux de mélange obligatoire afin de stabiliser les prix locaux de l’huile de palme. L’Argentine a suspendu ses droits à l’exportation sur le biodiesel pour accroître la compétitivité de ses exportations. Les États-Unis ont envisagé de geler ou de réduire leurs cibles en matière de consommation bioénergétique en 2018 et 2019, mais a finalement opté pour une augmentation marginale de la cible «biocarburants avancés», qui s’applique au biodiesel. Pendant ce temps, les législateurs américains n’ont pas délibéré sur la proposition de renouvellement rétroactif du crédit d’impôt accordé au biodiesel qui a expiré fin 2016.

Mesures de politique commerciale: En vue de protéger les intérêts des producteurs et des consommateurs nationaux, l’Indonésie et la Malaisie ont maintenu les régimes de taxes progressives sur les exportations d’huile de palme. Parallèlement, l’Argentine, la Bolivie et l’Inde ont mis en place de nouvelles mesures de promotion des exportations non tarifaires, alors que les législateurs de l’Ukraine ont approuvé un changement de politique favorisant les expéditions d’huiles et de farines plutôt que les exportations de graines oléagineuses.

Pour ce qui est des importations, des préoccupations concernant la précarité de l’offre intérieure (y compris l’offre de matières premières pour les industries de transformation locales) ont incité un certain nombre de pays à assouplir les barrières commerciales. En revanche, d’autres pays ont relevé les barrières à l’importation; cela a été tout particulièrement le cas de l’Inde, en vue non seulement de protéger les agriculteurs locaux et d’encourager la production nationale, mais également de soutenir les transformateurs et raffineurs domestiques. Alors que la Chine a reporté la mise en œuvre d’une barrière générale non tarifaire sur les importations d’huile végétale en vrac, elle a annoncé un resserrement des exigences phytosanitaires pour le soja importé des États-Unis. En outre, la Chine a levé une mesure non tarifaire sur l’huile de soja en provenance d’Argentine, dans le cadre de vastes discussions visant à équilibrer les échanges entre les deux pays.

Plusieurs vastes accords commerciaux bilatéraux sont en cours de négociation ou sont entrés en vigueur en 2017 – concernant souvent d’importants pays exportateurs/importateurs de graines oléagineuses et portant notamment sur le colza. Au niveau mondial, un nouvel accord international sur l’huile d’olive est entré en vigueur. De plus, en 2017, de nombreuses initiatives commerciales bilatérales spécifiques aux produits oléagineux ont vu le jour, en particulier en ce qui concerne l’huile de palme. Ces initiatives visent à: i) promouvoir les exportations (y compris des mesures ciblant les industries naissantes de biodiesel); ii) satisfaire les besoins d’importation; iii) faciliter le transfert des savoir-faire techniques (afin de tirer profit des capacités de transformation locales et de stimuler la demande locale); ou iv) résoudre certains obstacles non tarifaires.

xii Filière oléagineuses: Évolution des politiques et des mesures sectorielles - Recueil annuel 2017

MESURES ET INITIATIVES SECTORIELLES

L’OMC a rendu une décision sur un différend commercial entre l’UE et l’Indonésie concernant les alcools gras de palme et n’a constaté que des violations mineures du règlement de l’OMC. D’autre part, en réponse à une décision de l’OMC de 2016, l’UE a levé les droits antidumping sur les importations de biodiesel à base de soja en provenance d’Argentine, tandis que les États-Unis ont imposé des droits antidumping et compensateurs sur les importations de biodiesel en provenance d’Argentine et d’Indonésie. Parallèlement, la Chine a confirmé les droits antidumping et compensateurs sur les drêches sèches de distillerie (un substitut de la farine de soja) importées des États-Unis.

Infrastructures de transport: Le Brésil a accru ses efforts visant à améliorer la logistique d’entreposage et de transport. Apparemment, les investissements, public et privé, ont contribué à améliorer considérablement les infrastructures routières, portuaires et fluviales dans le nord du Brésil – faisant passer la capacité annuelle totale d’expédition à 40 millions de tonnes métriques de céréales, ce qui a favorisé un désengorgement des routes d’expédition traditionnelles vers le sud. En outre, le Brésil et la Chine ont mis en place un fonds d’investissement commun pour les projets d’infrastructure, étant donné que le traitement des goulots d’étranglement dans la logistique du transport au Brésil pourrait réduire de façon significative les coûts d’expédition vers la Chine, notamment pour le soja.

Durabilité de la production: L’UE a engagé une discussion controversée sur de possibles restrictions – pour des raisons environnementales – sur les importations de certains huiles végétales destinées à la production de biodiesel. De même, la Norvège a pris des mesures pour mettre fin à l’achat de biodiesel produit de façon supposément non durable. Les gouvernements de l’Indonésie et de la Malaisie ont contesté ces initiatives; ils ont également lancé des systèmes nationaux de certification obligatoire pour l’huile de palme (par opposition à la certification volontaire par le biais de la Table ronde sur l’huile de palme durable, RSPO – organisme de normalisation soutenu par l’industrie et reconnu à l’échelle mondiale), en raison d’exigences trop strictes, de coûts de certification élevés et de l’absence de prise en compte des préoccupations des petits exploitants. Apparemment, en décembre 2017, les taux de certification et les niveaux d’acceptation à l’échelle internationale des deux systèmes nationaux étaient limités. Parmi les autres mesures de réglementation pertinentes figurent: l’extension par l’Indonésie d’un moratoire visant à freiner la déforestation et la pollution provoquées par les feux de forêt; et l’engagement du Pérou à consulter les communautés autochtones avant d’approuver des projets de production d’huile de palme qui pourraient avoir des répercussions sur eux.

Les normes volontaires du secteur privé ont continué de jouer un rôle important dans l’orientation du complexe oléagineux mondial et, en particulier, du commerce international des graines, des huiles et des farines d’oléagineux.

Production durable: Les normes de l’industrie concernant la production durable d’huile de palme ont continué d’évoluer, comme en témoignent plusieurs nouvelles initiatives visant à promouvoir des pratiques responsables le long de la chaîne de valeur de l’huile de palme. Alors qu’un certain nombre de parties prenantes se sont engagées dans des programmes visant à former les petits exploitants aux pratiques de production durable et à les aider à accéder aux certifications, plusieurs entreprises agroalimentaires mondiales ont renouvelé leurs engagements à l’égard d’un approvisionnement «responsable» et traçable. Dans certains cas, les producteurs se sont engagés à s’abstenir de développer leur production sur des tourbières fragiles sur le plan environnemental ou ont accepté de restaurer des zones de tourbe récemment exploitées. En outre, les établissements de crédit se sont engagés à accorder une attention accrue aux aspects sociaux/environnementaux et ont commencé à évaluer les candidats de l’industrie de l’huile de palme en tenant compte de leurs capacités en matière de durabilité. La pression continue exercée par les consommateurs et d’autres groupes de la société civile a fortement contribué à ces évolutions.

La RSPO, l’organisme de normalisation et certification de l’huile de palme largement utilisé et reconnu par l’industrie à l’échelle mondiale, a entrepris un examen de ses principes et critères, et devrait adopter une nouvelle série de normes plus strictes à la fin de 2018. Pendant ce temps, des questions de conformité ont incité la RSPO à prendre des mesures contre certains membres soupçonnés d’avoir enfreint les codes de pratiques de l’organisation – des cas que les observateurs ont considéré comme importants en vue d’apprécier la capacité de la RSPO à défendre ses propres normes et règlements. La mesure dans laquelle la certification a effectivement contribué à limiter la déforestation reste soumise à débat. Concernant la diffusion plus large de la certification, les parties prenantes de l’industrie ont signalé que les coûts élevés de vérification – combinés à l’absence de sensibilisation des consommateurs et à la faiblesse de la demande d’huile certifiée – constituaient des obstacles majeurs. En effet, les chiffres de la RSPO suggèrent que l’offre mondiale d’huile de palme certifiée reste supérieure aux ventes réelles, et qu’environ la moitié de tous les produits certifiés ne trouve pas d’acheteur. En général, la demande de produits certifiés reste concentrée dans un nombre relativement peu élevé de pays développés, et elle ne progresse que lentement dans les pays en développement – en particulier de grands pays importateurs comme l’Inde, la Chine ou le Pakistan. Sur une note positive, davantage d’acheteurs se sont approvisionnés en huile de palme certifiée directement par le biais de chaînes d’approvisionnement physiques plutôt que par des mécanismes de certificats négociables («book & claim»).

Filière oléagineuses: Évolution des politiques et des mesures sectorielles - Recueil annuel 2017 xiii

Bien que moins prononcé, les discussions sur la durabilité ont également porté sur d’autres oléagineux. Certains groupes de l’industrie au Brésil et dans l’UE ont forgé de nouvelles alliances afin de développer une chaîne d’approvisionnement spécifique pour le «soja responsable». Par ailleurs, des évaluations indépendantes du moratoire du Brésil sur le soja, qui interdit le financement et le commerce du soja cultivé sur des terres défrichées illégalement dans la région amazonienne, ont suggéré que l’interdiction avait contribué à des formes plus responsables d’expansion de la production. En Asie, une nouvelle initiative publique-privée a été lancée en vue d’établir une chaîne d’approvisionnement durable et certifiée pour la noix de coco. En outre, la Marine Ingredients Organisation, l’organisation internationale des producteurs d’huile et de farine de poisson, a amélioré sa norme mondiale concernant l’approvisionnement responsable en matières premières marines.

Normes sur les huiles comestibles: Plusieurs pays ont signalé des efforts visant à améliorer l’authentification et l’identification d’origine en vue de prévenir les pratiques frauduleuses et/ou d’accroître les exportations.

Questions concernant les OGM: La demande pour les produits à base de soja non-OGM s’est encore accrue sur les nouveaux marchés de niche en Europe et en Asie. Apparemment, bien que la production non-OGM ait augmenté à la suite d’investissements privés dans des installations de manutention et de transport spécifiques, la demande totale est restée supérieure à l’offre disponible.

Mesures portant sur les biocarburants: Comme en 2016, diverses initiatives de l’industrie relatives aux biocarburants se sont concentrées sur l’utilisation de matières premières non comestibles pour la fabrication de biodiesel. Ces initiatives se sont élargies au-delà de l’Europe, et concernent désormais des pays dans les Amériques et en Asie-Pacifique, qui s’intéressent notamment à la production de biodiesel à partir d’huile de cuisson usagée. Compte tenu des engagements de réduction des émissions de CO2 du transport aérien, les combustibles de qualité aéronautique à base d’huile végétale ont également fait l’objet d’une attention accrue.

Commerce international: Des sociétés en Chine ont annoncé leur intention de continuer à renforcer leur présence au Brésil, en vue d’accroître leur approvisionnement direct en soja – une stratégie appuyée par des investissements dans les infrastructures de stockage et de transport au Brésil. Par ailleurs, en Tunisie, l’industrie de l’huile d’olive a lancé un programme de promotion des échanges ciblé sur le marché japonais.

Marchés et finance: Afin d’améliorer le processus de détermination des prix et les pratiques de gestion des risques, les bourses agricoles en Asie ont lancé un contrat d’options sur la farine de soja en Chine ainsi que des contrats sur les tourteaux de graines de ricin et de moutarde en Inde. Aux États-Unis, le Chicago Board of Trade a révisé les limites quotidiennes de variation des prix pour les contrats portant sur les farines/tourteaux de soja, tandis que dans l’UE, la bourse Euronext a lancé de nouveaux contrats sur le colza.

Recherche et développement: Les mesures de R&D concernant les cultures oléagineuses et leurs produits dérivés semblent avoir considérablement augmenté en 2017 par rapport à l’année précédente. Outre les nouvelles variétés de graines oléagineuses, la recherche a porté principalement sur le développement de nouveaux produits, aussi bien à des fins alimentaires que pour des applications industrielles (principalement pour le soja) ou de nouvelles utilisations fourragères. Parmi les faits nouveaux concernant la lutte contre les maladies figurent: des gènes du colza résistant au charbon bactérien, un important ravageur; et des stratégies de lutte contre la rouille du soja en Amérique latine. Dans l’ensemble, le colza a occupé une place importante des stratégies de R&D, soit plus d’un tiers de l’ensemble des initiatives en la matière. Les variétés d’oléagineux à teneur élevée en acide oléique ont également fait l’objet d’une attention particulière, en raison des caractéristiques salutaires des huiles tirées de ces variétés, de leur durée de vie accrue et de leur haute capacité de friture. De plus, les efforts en matière de recherche déployés pour améliorer le potentiel de rendement des palmiers à l’huile et des cocotiers ont été maintenus.

xiv Sector oleaginosas: Cambios de políticas y de medidas del sector industrial - Compendio anual 2017

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 2017.

El compendio reproduce, en forma tabular, todas las políticas y noticias del sector industrial aparecidas durante 2017 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 F. Greb, G. Karumathy y M. Milo. Se agradece el apoyo de E. Vecchione que formateó este informe.

©/Flickr Ann Berlin

Sector oleaginosas: Cambios de políticas y de medidas del sector industrial - Compendio anual 2017 xv

Apoyo a la producción: China continuó aplicando políticas de apoyo a la producción destinadas a recortar la producción de maíz (junto con reformas del sistema nacional de reservas de cereales), alentando al mismo tiempo el cultivo de soja, colza y otros usos de la tierra, incluidos los períodos de barbecho. Para aumentar la eficacia de sus programas de apoyo a las explotaciones agrícolas, el país sustituyó su sistema de precios indicativos para la soja – en vigor hasta 2016 – por pagos por hectárea disociados de los precios de mercado. En la India, los precios mínimos para los cultivos oleaginosos fueron objeto de los ajustes al alza habituales, sin embargo los agricultores y las asociaciones industriales sostuvieron que los aumentos eran insuficientes para compensar el incremento de los costos de producción y subrayaron que las intervenciones en el mercado público seguían siendo demasiado pequeñas para sostener los precios fijados por el Gobierno. Para hacer frente a las situaciones de crisis rural causadas por la debilidad de los precios de los productos básicos, se pusieron en marcha varios sistemas de compensación a nivel estatal. También otros países mantuvieron sus programas de apoyo a la producción, basados principalmente en pagos directos a los agricultores y en programas de préstamos subvencionados. El Brasil también aumentó los desembolsos para programas de seguro de las cosechas (por segundo año consecutivo), mientras que Indonesia puso en marcha un programa público de rejuvenecimiento de la palma aceitera centrado en los pequeños productores.

Desarrollo del sector: Varios países, principalmente de la región de Asia y el Pacífico, aplicaron diversas medidas de desarrollo del sector, centradas en particular en el coco y, en menor medida, en la soja y la palma aceitera. Por lo general, estas medidas tenían por objeto: i) reducir la dependencia de las importaciones del país; ii) satisfacer la creciente demanda interna; iii) fomentar el valor añadido local y aumentar los ingresos de exportación; y iv) promover sistemas agrícolas más sostenibles y resilientes o perseguir otros objetivos de desarrollo a largo plazo. Aunque la mayoría de las iniciativas se centraron en impulsar la producción, las estrategias para lograrlo difirieron ampliamente e incluyeron la expansión de la superficie, la distribución de semillas de alto rendimiento, el rejuvenecimiento de las plantaciones, la promoción de nuevos métodos de cultivo y la garantía de precios.

Medidas de lucha contra las plagas: En el Canadá, los Estados Unidos y la UE, el glifosato, un herbicida ampliamente utilizado aunque “posiblemente cancerígeno”, se sometió a examen, pero los tres países llegaron a la conclusión de que era probable que el producto químico no planteara riesgos para la salud. Sin embargo, la UE renovó la autorización del producto sólo por un período abreviado de cinco años (en lugar de los quince habituales). Otro herbicida, Dicamba, recibió especial atención en los Estados Unidos debido sus efectos potencialmente negativos en los cultivos no resistentes, lo que dio lugar a restricciones estatales específicas y a acuerdos con los fabricantes en relación con las medidas de protección. En la UE, la infección bacteriana que afecta a los olivos siguió siendo motivo de preocupación, lo que dio lugar a nuevos esfuerzos por mejorar las medidas de detección precoz, prevención y control de la enfermedad.

Regulación del mercado: Aunque en 2017 tuvieron menos importancia que en el año anterior, varios países ajustaron las medidas de control de precios con el fin de apoyar a los productores o a los consumidores. Los cambios en los impuestos sobre el valor añadido también siguieron utilizándose como instrumento de política. Las compras públicas, el almacenamiento y las ventas en subastas se mantuvieron en China (donde las ventas públicas de soja y aceite de colza procedentes de las reservas estatales se redujeron en comparación con años anteriores, junto con la eliminación gradual de las compras públicas), así como en la India, Indonesia y Sri Lanka. Si bien la India amplió y simplificó sus operaciones de contratación pública, en general las intervenciones siguieron siendo localizadas e intermitentes. El Canadá renovó sus disposiciones para proteger a los agricultores contra el aumento de los costos de expedición internos.

Aspectos más destacados

En las siguientes líneas se presentan de manera resumida los cambios de política y tendencias más relevantes observadas en 2017. En los cuadros que figuran a continuación (disponibles sólo en inglés) se proporciona información más detallada.

POLÍTICAS GUBERNAMENTALES

xvi Sector oleaginosas: Cambios de políticas y de medidas del sector industrial - Compendio anual 2017

Normas alimentarias: En consonancia con esfuerzos similares desplegados en otros lugares, el Canadá prohibió el uso de aceites parcialmente hidrogenados – que son la principal fuente de grasas trans nocivas – en la cadena alimentaria nacional. Tailandia consideró seguir el ejemplo, mientras que en la India se impuso tanto un límite al contenido de grasas trans, así como el etiquetado obligatorio. Los umbrales para ciertos tipos de grasa y las declaraciones explícitas de propiedades saludables en las etiquetas de los productos también recibieron atención en los Estados Unidos y el Perú. Además, varios países introdujeron medidas de inocuidad de los alimentos dirigidas específicamente a luchar contra la adulteración de los aceites vegetales. A nivel internacional, la Comisión FAO/OMS del Codex Alimentarius publicó su primera norma (no vinculante) relativa al aceite de pescado, además de deliberar sobre modificaciones de otras normas existentes relativas a los cultivos oleaginosos y los productos derivados.

Políticas en materia de OMG: En el marco de amplios esfuerzos para facilitar el comercio con los Estados Unidos, China renovó la autorización de importación para uso para piensos de siete variedades de semillas oleaginosas modificadas genéticamente y la concedió para dos nuevas variedades. La UE y Turquía también autorizaron la importación de nuevas variedades transgénicas, exclusivamente con fines de consumo (es decir, no para cultivo). Mientras que la Argentina autorizó el cultivo de una nueva variedad de soja transgénica, la India volvió a postergar la aprobación de una semilla de mostaza transgénica desarrollada localmente que representaba el primer cultivo alimentario transgénico del país. Por otra parte, México revocó una aprobación anterior de una soja transgénica después de detectar un uso no autorizado. Australia consideró la posibilidad de compensar a los agricultores que perdieran su certificación de libres de transgénicos, o de orgánicos debido a la contaminación por semillas de colza transgénica. En cuanto al etiquetado obligatorio del contenido de transgénicos en los productos alimenticios, los legisladores canadienses rechazaron las propuestas correspondientes, contrariamente a los Estados Unidos, donde se prevé que las nuevas reglamentaciones a tal efecto entren en vigor en 2018.

Políticas en materia de biocombustibles: Varios países (entre ellos la Argentina, los Estados Unidos, Indonesia y Tailandia) introdujeron ajustes en sus programas de apoyo a los biocombustibles, mientras que otros (el Brasil, el Canadá, el Reino Unido y la UE) emprendieron exámenes exhaustivos de sus políticas actuales en materia de bioenergía. La UE mantuvo su compromiso de limitar el consumo de biocombustibles obtenidos a partir de cultivos (que incluyen el diésel derivado de aceites vegetales), sustituyéndolos progresivamente por biocombustibles de “segunda generación”. Indonesia continuó subvencionando a los productores de diésel a base de palma, pero consideró la posibilidad de extender las subvenciones a un volumen mayor con miras a estimular aún más la producción nacional. Tailandia siguió ajustando su tasa de mezcla obligatoria en un intento por estabilizar el precio nacional del aceite de palma. La Argentina suspendió sus derechos de exportación sobre el biodiesel para aumentar la competitividad de sus exportaciones. Los Estados Unidos consideraron la posibilidad de congelar o reducir sus objetivos de consumo de bioenergía para 2018 y 2019, pero finalmente optaron por un aumento marginal del objetivo de los “biocombustibles avanzados”, que se aplica al biodiesel. Mientras tanto, los legisladores estadounidenses no deliberaron sobre la propuesta de renovación retroactiva del crédito fiscal al biodiesel en el país, que expiró a finales de 2016.

Medidas de política comercial: Con el fin de proteger los intereses de los productores y consumidores nacionales, se mantuvieron los regímenes impositivos móviles para las exportaciones de aceite de palma en Indonesia y Malasia. Al mismo tiempo, la Argentina, Bolivia y la India aplicaron nuevas medidas no arancelarias de promoción de las exportaciones, mientras que los legisladores de Ucrania aprobaron un cambio de política para fomentar los envíos de aceite y harina, en contraposición a las exportaciones de semillas oleaginosas.

Por lo que respecta a las importaciones, la preocupación por las dificultades de los consumidores y los suministros nacionales adecuados (incluidos los suministros de materias primas para las industrias de transformación locales) indujo a varios países a reducir las barreras comerciales. Por el contrario, se erigieron barreras a la importación en otros lugares, especialmente en la India, para proteger a los agricultores locales y fomentar la producción nacional, pero también en un intento de apoyar a los elaboradores y refinadores nacionales. Si bien China postergó la aplicación de una barrera no arancelaria general para las importaciones de aceite vegetal a granel, el país anunció un endurecimiento de los requisitos fitosanitarios para la soja importada de los Estados Unidos. Además, China suprimió una medida no arancelaria sobre el aceite de soja argentino, como parte de amplias conversaciones sobre el equilibrio comercial entre ambos países.

En 2017 se negociaron o entraron en vigor varios acuerdos comerciales bilaterales de gran alcance, en los que a menudo participaron importantes países exportadores e importadores de semillas oleaginosas y que se referían en particular a la colza. A nivel mundial, entró en vigor un nuevo acuerdo internacional sobre el aceite de oliva. En 2017 también se llevaron a cabo numerosas iniciativas comerciales bilaterales específicas para los cultivos oleaginosos, especialmente con respecto al aceite de palma, dirigidas a: i) la promoción de las exportaciones (incluidas las medidas destinadas a las industrias nacientes de biodiesel); ii) la satisfacción de las necesidades de importación; iii) la facilitación de la transferencia de conocimientos técnicos (para aprovechar la capacidad de elaboración local y estimular la demanda local); o iv) la eliminación de una serie de barreras no arancelarias.

Sector oleaginosas: Cambios de políticas y de medidas del sector industrial - Compendio anual 2017 xvii

MEDIDAS E INICIATIVAS DEL SECTOR INDUSTRIAL

La OMC se pronunció sobre un litigio comercial entre la UE e Indonesia relativo a los alcoholes grasos de aceite de palma, encontrando sólo violaciones menores de la reglamentación de la OMC. Por otra parte, en respuesta a un fallo de la OMC de 2016, la UE levantó los derechos antidumping sobre las importaciones de biodiesel a base de soja procedentes de Argentina, mientras que los Estados Unidos impusieron derechos antidumping y antisubvenciones sobre las importaciones de biodiesel procedentes de Argentina e Indonesia. Mientras tanto, China confirmó los derechos antidumping y antisubvenciones del país sobre los residuos desecados de destilería (un sustituto de la harina de soja) importados de los Estados Unidos.

Infraestructura de transporte: El Brasil intensificó sus esfuerzos para mejorar la logística de almacenamiento y transporte del país. Según se informa, tanto la inversión pública como la privada contribuyeron a mejorar considerablemente la infraestructura vial, fluvial y portuaria del norte del Brasil – lo que dio lugar a una capacidad total anual de transporte de 40 millones de toneladas de granos y a una descongestión de las rutas tradicionales de transporte hacia el sur. Además, el Brasil y China crearon un fondo de inversión conjunto para proyectos de infraestructura, ya que abordar los cuellos de botella del transporte en el Brasil puede reducir de manera significativa los costos de envío a China, especialmente para la soja.

Sostenibilidad de la producción: La UE entabló un debate controvertido sobre la posible restricción – por razones medioambientales – de determinadas importaciones de aceite vegetal destinadas a la producción de biodiesel. Asimismo, Noruega adoptó medidas para poner fin a la adquisición de biodiesel supuestamente no sostenible. Los gobiernos de Indonesia y Malasia objetaron estas iniciativas; también lanzaron sistemas de certificación nacionales obligatorios para el aceite de palma (a diferencia de la certificación voluntaria a través de la Mesa redonda sobre el aceite de palma sostenible, RSPO – el órgano de establecimiento de normas para el aceite de palma respaldado por la industria y reconocido mundialmente), aduciendo requisitos demasiado estrictos, altos costos de certificación y la falta de atención a las preocupaciones de los pequeños productores. Según se informa, en diciembre de 2017, las tasas de certificación y los niveles de aceptación internacional de los dos sistemas nacionales eran limitados. Otras medidas regulatorias dignas de mención son la extensión por parte de Indonesia de una moratoria destinada a detener la deforestación y la contaminación por incendios forestales y el compromiso del Perú de consultar a las comunidades indígenas antes de aprobar proyectos relacionados con el aceite de palma que las afecten.

Las normas voluntarias del sector privado siguieron desempeñando un papel importante en la conformación del sector mundial de semillas oleaginosas y, en particular, en el comercio internacional de semillas oleaginosas, aceites y harinas.

Producción sostenible: Las normas del sector industrial para el aceite de palma sostenible siguieron evolucionando, como lo evidencian varias iniciativas nuevas que promueven prácticas responsables a lo largo de la cadena de valor del aceite de palma. Mientras que varias partes interesadas se comprometieron en programas para capacitar a los pequeños agricultores en prácticas de producción sostenible y apoyar su inclusión en la certificación, varias empresas agro-comerciales internacionales renovaron sus compromisos con el abastecimiento “responsable” y trazable. En algunos casos, los productores se comprometieron a abstenerse de desarrollar turberas frágiles desde el punto de vista ambiental o aceptaron restaurar zonas de turba recientemente desarrolladas. Además, las instituciones crediticias se comprometieron a prestar mayor atención a los aspectos ambientales y sociales y comenzaron a seleccionar a los solicitantes de la industria del aceite de palma tomando en cuenta su historial de sostenibilidad. La constante presión de asociaciones de consumidores y de otros grupos de la sociedad civil contribuyó en gran medida a esta evolución.

La RSPO, el órgano de establecimiento de normas y certificación para el aceite de palma mundialmente utilizado y dirigido por la industria, inició una revisión de sus principios y criterios, esperando adoptar un conjunto de normas revisadas y más estrictas a finales de 2018. Mientras tanto, problemas de cumplimiento impulsaron a la RSPO a tomar medidas contra algunos miembros por presunta violación de los códigos de práctica de la organización – casos que los observadores consideraron importantes pruebas de la capacidad de la RSPO de hacer cumplir sus propias normas y reglamentos. La medida en que la certificación contribuyó realmente a limitar la deforestación siguió siendo objeto de debate. En cuanto a la mayor difusión de la certificación, las partes interesadas de la industria señalaron como obstáculos principales a los altos costos de auditoría, combinados con la falta de conciencia de los consumidores y la débil demanda de aceite certificado. De hecho, las cifras de la RSPO sugieren que la oferta mundial de aceite de palma certificado siguiera superando las ventas reales, dado que aproximadamente la mitad de todos los productos certificados no encontraron comprador. En general, la demanda de productos certificados siguió concentrándose en un número relativamente pequeño de países desarrollados, y sólo se registraron moderados aumentos en los países en desarrollo, en particular en los grandes importadores como la India, China o el Pakistán. Como aspecto positivo, más compradores pasaron de abastecerse de aceite de palma certificado a través de los mecanismos “book & claim” a comprar a través de cadenas de suministro físicas.

Aunque mucho menos importantes, los debates sobre la sostenibilidad también se centraron en otros cultivos oleaginosos. Grupos industriales del Brasil y la UE forjaron nuevas alianzas para desarrollar una cadena de suministro dedicada a la “soja responsable”. Además, evaluaciones independientes de la moratoria de la soja en el Brasil, que prohíbe el financiamiento y el comercio de soja cultivada en tierras ilegalmente desbrozadas en la región amazónica, sugieren que la prohibición ha contribuido a formas más responsables de aumento de la producción. Mientras tanto, en Asia, una nueva iniciativa público-privada apuntaba a establecer una cadena de suministro de coco sostenible certificada. Además, la Marine Ingredients Organisation, el organismo que representa a la industria mundial de harina y aceite de pescado e ingredientes marinos, mejoró su norma mundial para el suministro responsable de materias primas marinas.

Normas para aceites comestibles: Varios países comunicaron que se habían adoptado medidas para mejorar la autenticación y determinación del origen con miras a prevenir las prácticas fraudulentas y/o mejorar los resultados de las exportaciones.

Cuestiones relativas a los OMG: La demanda de productos de soja no modificados genéticamente ha crecido aún más en los mercados especializados emergentes de Europa y Asia. Aparentemente, aunque la producción de productos no modificados genéticamente aumentó gracias a las inversiones privadas en servicios específicos para la manipulación y el transporte, la demanda total siguió superando la oferta disponible.

Medidas relativas a los biocombustibles: Al igual que en 2016, varias iniciativas industriales relacionadas con los biocombustibles se centraron en el uso de materias primas no comestibles para la producción de biodiesel. Estas se expandieron más allá de Europa, involucrando a países de las Américas y de Asia y el Pacífico, a menudo explorando la producción de biodiesel a partir de aceite de cocina usado. En vista de los compromisos mundiales de reducción de las emisiones de CO2 de las compañías aéreas, también se prestó mayor atención a los combustibles derivados de aceites vegetales para la aviación.

Comercio internacional: Algunas empresas de China anunciaron planes para seguir expandiendo su presencia en el Brasil, con miras a ampliar el abastecimiento directo de soja – una política complementada por las inversiones en infraestructura de almacenamiento y transporte en el Brasil. Además, la industria del aceite de oliva tunecina puso en marcha un programa de promoción comercial destinado al mercado japonés.

Mercados y finanzas: Para mejorar la determinación de los precios y reforzar las prácticas de gestión de riesgos, las bolsas de productos básicos agrícolas de Asia lanzaron un contrato de opciones de harina de soja en China, así como contratos de tortas de semillas de ricino y mostaza en la India. En los Estados Unidos, la bolsa Chicago Board of Trade revisó los límites de cambio de precios diarios para los contratos de soja/harina, mientras que la bolsa Euronext de la UE lanzó nuevos contratos de semillas de colza.

Investigación y desarrollo: Los ejemplos de medidas de investigación y desarrollo relativas a los cultivos oleaginosos y productos derivados parecen haber aumentado considerablemente en 2017 en comparación con el año anterior. Además de las nuevas variedades de semillas oleaginosas, la investigación se centró principalmente en el desarrollo de productos, abarcando tanto aplicaciones industriales alimentarias como no alimentarias (principalmente para la soja), así como nuevos usos para piensos. Entre los avances relacionados con el control de las plagas figuran los genes de la colza resistentes al carbunco sintomático, una de las principales plagas, así como las estrategias de control de la roya de la soja en América Latina. En general, la colza ocupó un lugar destacado, representando más de un tercio de todas las actividades de investigación y desarrollo. Las variedades de cultivos oleaginosos de alto contenido de ácido graso oleico también recibieron bastante atención, dado el perfil saludable de los respectivos aceites, su mayor vida útil y su alta aptitud para la fritura. También continuaron los esfuerzos de investigación para mejorar el potencial de rendimiento de la palma aceitera y la palma de coco.

xviii Sector oleaginosas: Cambios de políticas y de medidas del sector industrial - Compendio anual 2017

Oilcrops complex: Policy changes and industry measures - Annual compendium 2017 1

Indu

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IND

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2 Oilcrops complex: Policy changes and industry measures - Annual compendium 2017

Tabl

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G

over

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s im

plem

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d in

201

7

No.

Dom

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Cou

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Mon

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1AG

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disa

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(USD

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cent

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last

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abo

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0 pe

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per

cent

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to ra

tes

of 8

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d la

st s

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will

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ket r

ates

– w

ith

the

Cen

tral B

ank’

s be

nchm

ark

rate

sta

ndin

g at

10.

25 p

erce

nt in

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7. T

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orro

win

g lim

its fo

r ind

ivid

ual f

arm

hou

seho

lds

will

rem

ain

unch

ange

d fro

m la

st y

ear.

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rate

from

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abov

e lo

an p

rogr

amm

es, t

he G

over

nmen

t ple

dged

to ra

ise

publ

ic o

utla

ys fo

r cro

p in

sura

nce

subs

idie

s fo

r the

sec

ond

year

in s

ucce

ssio

n (re

achi

ng B

RL 5

50 m

illion

, or U

SD 1

69 m

illion

), w

hile

fund

s sp

ecifi

cally

ear

mar

ked

for

fam

ily fa

rms

will

rem

ain

unal

tere

d at

BRL

30

billio

n (U

SD 9

.21

billio

n).

4AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Prod

uctio

n su

ppor

t

Chi

naM

arch

Arab

le c

rops

In a

pol

icy

stat

emen

t, th

e G

over

nmen

t of C

hina

con

firm

ed e

arlie

r pla

ns to

gra

dual

ly m

odify

the

coun

try’s

crop

stru

ctur

e, e

ncou

ragi

ng fa

rmer

s to

exp

and

soyb

ean

prod

uctio

n as

wel

l as

mai

ze

prod

uctio

n fo

r sila

ge, w

hile

redu

cing

mai

ze p

rodu

ctio

n fo

r gra

in (s

ee M

PPU

Jun

e &

Nov

.’16)

. As

to th

e na

tion-

wid

e ta

rget

pric

e fo

r soy

bean

s an

d H

eilo

ngjia

ng’s

soyb

ean

prod

uctio

n su

bsid

y, no

adj

ustm

ents

hav

e be

en a

nnou

nced

in p

repa

ratio

n of

the

forth

com

ing

2017

/18

plan

tings

.

Oilcrops complex: Policy changes and industry measures - Annual compendium 2017 3

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

1AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Prod

uctio

n su

ppor

t

Arge

ntin

aM

aySo

ybea

nAr

gent

ina’

s M

inis

try o

f Agr

icul

ture

det

erm

ined

that

the

subs

idy

prov

ided

to s

oybe

an fa

rmer

s in

the

coun

try’s

disa

dvan

tage

s no

rther

n re

gion

s w

ill am

ount

to A

RS 2

90 p

er to

nne

(USD

18)

. Fa

rmer

s pro

duci

ng u

p to

2 0

00 to

nnes

will

be en

title

d to

hav

e the

ir en

tire p

rodu

ctio

n su

bsid

ized,

w

here

as c

aps

will

be a

pplie

d to

larg

er p

rodu

cers

. For

the

2016

/17

cam

paig

n, th

e G

over

nmen

t bu

dget

ed to

tal o

utla

ys u

nder

the

prog

ram

me

at A

RS 1

000

milli

on (U

SD 6

2.9

milli

on).

As p

art

of e

fforts

to re

vita

lize

the

econ

omy

of th

e co

untry

’s no

rther

n re

gion

s, th

e G

over

nmen

t als

o aw

arde

d ne

w c

ontra

cts

to la

y ra

ilway

trac

ks in

the

prov

ince

s of

Juj

uy a

nd S

alta

. Arg

entin

a’s

north

ern

prov

ince

s ar

e vi

ewed

as

one

of th

e fe

w a

reas

with

pot

entia

l for

gra

in a

nd o

ilsee

d pr

oduc

tion

to e

xpan

d, e

spec

ially

ass

umin

g im

prov

ed tr

ansp

ort i

nfra

stru

ctur

e. C

urre

ntly,

the

regi

on a

ccou

nts

for a

bout

10

perc

ent o

f nat

iona

l soy

bean

out

put.

2AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Prod

uctio

n su

ppor

t

Braz

ilJa

nuar

yAg

ricul

tura

l cr

ops

The

Gov

ernm

ent o

f Bra

zil p

rese

nted

its

pre-

crop

fina

ncin

g sc

hem

e fo

r the

201

7/18

cro

p ye

ar.

The

prog

ram

me

will

allo

w m

ediu

m-s

ized

prod

ucer

s to

pur

chas

e ag

ricul

tura

l inp

uts

(see

ds,

ferti

lizer

s an

d pe

stic

ides

) for

the

2017

/18

seas

on a

t a p

refe

rent

ial i

nter

est r

ate

of 8

.5 p

erce

nt.

This

yea

r’s c

redi

t lin

e w

ill to

tal B

RL 1

2 bi

llion

(USD

3.8

3 bi

llion)

– u

p 20

per

cent

from

last

ye

ar’s

leve

l. Th

e m

axim

um a

mou

nt e

ach

farm

er c

an b

orro

w h

as b

een

set a

t BRL

780

000

(U

SD 2

50 0

00).

3AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Prod

uctio

n su

ppor

t

Braz

ilJu

neAg

ricul

tura

l cr

ops

The

gove

rnm

ent o

f Bra

zil p

rese

nted

its a

gric

ultu

ral s

uppo

rt pa

ckag

e fo

r the

201

7/18

seas

on. I

n th

e fo

rthco

min

g se

ason

, com

mer

cial

farm

ing

will

be g

rant

ed a

cces

s to

loan

s w

orth

BRL

188

.3

billio

n (U

SD 5

7.9

billio

n) –

a 2

.5 p

erce

nt in

crea

se f

rom

last

yea

r’s le

vel,

whi

ch,

how

ever

, co

mpa

res

to a

201

6-20

17 in

flatio

n ra

te o

f abo

ut 4

per

cent

. In

2017

/18,

abo

ut 8

0 pe

rcen

t of

agr

icul

tura

l fu

ndin

g w

ill be

allo

tted

to l

oans

for

pro

duct

ion

and

mar

ketin

g op

erat

ions

an

d 20

per

cent

to o

n-fa

rm in

vest

men

t loa

ns. T

he la

tter w

ill at

tract

mos

t of t

he y

ear-o

n-ye

ar

incr

ease

in fi

nanc

ial r

esou

rces

, with

spe

cial

atte

ntio

n gi

ven

to in

vest

men

ts in

on-

farm

sto

ck-

hold

ing

faci

litie

s an

d im

prov

ed p

rodu

ctio

n te

chno

logi

es. O

vera

ll, s

ome

80 p

erce

nt o

f the

loan

s w

ill be

pro

vide

d at

con

cess

iona

l int

eres

t rat

es o

f 7.5

–8.5

per

cent

, whi

ch c

ompa

res

to ra

tes

of 8

.5–9

.5 p

erce

nt a

pplie

d la

st s

easo

n. T

he re

mai

nder

will

be o

ffere

d at

mar

ket r

ates

– w

ith

the

Cen

tral B

ank’

s be

nchm

ark

rate

sta

ndin

g at

10.

25 p

erce

nt in

May

201

7. T

he b

orro

win

g lim

its fo

r ind

ivid

ual f

arm

hou

seho

lds

will

rem

ain

unch

ange

d fro

m la

st y

ear.

Sepa

rate

from

the

abov

e lo

an p

rogr

amm

es, t

he G

over

nmen

t ple

dged

to ra

ise

publ

ic o

utla

ys fo

r cro

p in

sura

nce

subs

idie

s fo

r the

sec

ond

year

in s

ucce

ssio

n (re

achi

ng B

RL 5

50 m

illion

, or U

SD 1

69 m

illion

), w

hile

fund

s sp

ecifi

cally

ear

mar

ked

for

fam

ily fa

rms

will

rem

ain

unal

tere

d at

BRL

30

billio

n (U

SD 9

.21

billio

n).

4AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Prod

uctio

n su

ppor

t

Chi

naM

arch

Arab

le c

rops

In a

pol

icy

stat

emen

t, th

e G

over

nmen

t of C

hina

con

firm

ed e

arlie

r pla

ns to

gra

dual

ly m

odify

the

coun

try’s

crop

stru

ctur

e, e

ncou

ragi

ng fa

rmer

s to

exp

and

soyb

ean

prod

uctio

n as

wel

l as

mai

ze

prod

uctio

n fo

r sila

ge, w

hile

redu

cing

mai

ze p

rodu

ctio

n fo

r gra

in (s

ee M

PPU

Jun

e &

Nov

.’16)

. As

to th

e na

tion-

wid

e ta

rget

pric

e fo

r soy

bean

s an

d H

eilo

ngjia

ng’s

soyb

ean

prod

uctio

n su

bsid

y, no

adj

ustm

ents

hav

e be

en a

nnou

nced

in p

repa

ratio

n of

the

forth

com

ing

2017

/18

plan

tings

.

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

naM

ayAr

able

cro

psC

hina

’s M

inis

try o

f Agr

icul

ture

issu

ed g

uide

lines

con

cern

ing

the

futu

re d

istri

butio

n of

ara

ble

land

as

part

of th

e co

untry

’s na

tiona

l foo

d se

curit

y st

rate

gy. I

n or

der t

o en

sure

the

effec

tive

allo

catio

n of

agr

icul

tura

l res

ourc

es a

cros

s th

e co

untry

, dur

ing

the

next

thre

e ye

ars,

60

milli

on

ha o

f lan

d w

ould

be

earm

arke

d fo

r the

cul

tivat

ion

of ri

ce, w

heat

and

mai

ze, a

nd a

n ad

ditio

nal

19 m

illion

ha

for s

oybe

ans,

rape

seed

, cot

ton,

sug

ar a

nd ru

bber

. For

soy

bean

s an

d ra

pese

ed,

resp

ectiv

ely

6.7

and

4.7

milli

on h

a of

pro

tect

ed la

nd w

ill be

iden

tified

. Th

e ne

w p

olic

y is

m

eant

to h

elp

optim

ize th

e co

untry

’s ag

ricul

tura

l pro

duct

ion

patte

rn, w

hile

mak

ing

agric

ultu

ral

supp

ort

prog

ram

mes

mor

e eff

ectiv

e. T

he c

ount

ry’s

inve

stm

ents

in

fixed

ass

ets,

tra

nsfe

r pa

ymen

ts, a

nd p

lann

ed re

form

s in

agr

icul

tura

l len

ding

will

conc

entra

te o

n th

e ta

rget

are

as.

6AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Prod

uctio

n su

ppor

t

Chi

naM

aySo

ybea

nIn

Chi

na’s

north

east

ern

grai

n be

lt, f

arm

ers

will

cont

inue

to

rece

ive

subs

idie

s fo

r gr

owin

g so

ybea

ns a

nd m

aize

, bas

ed o

n ar

ea p

lant

ed. G

over

nmen

t offi

cial

s co

nfirm

ed t

hat,

for

the

2017

/18

crop

, th

e su

bsid

y pr

ovid

ed f

or s

oybe

an c

ultiv

atio

n w

ould

rem

ain

abov

e th

at f

or

mai

ze, i

n or

der

to e

ncou

rage

farm

ers

to s

hift

addi

tiona

l acr

eage

from

mai

ze t

o so

ybea

ns.

Soyb

ean

paym

ents

will

be d

e-co

uple

d fro

m m

arke

t pric

es, r

epla

cing

the

targ

et p

rice

syst

em

in p

lace

from

201

4 to

201

6 (s

ee a

lso M

PPU

Jun

e/N

ov.’1

4 &

Nov

.’16)

. The

exa

ct a

mou

nt o

f the

ar

ea-b

ased

sub

sidi

es w

ill on

ly b

e de

term

ined

late

r in

the

seas

on. I

n th

e m

eant

ime,

pro

vinc

ial

offici

als

will

com

pile

det

aile

d la

nd s

tatis

tics

to d

eter

min

e th

e fa

rmer

s’ e

ligib

ility

for t

he s

ubsi

dy.

The

cent

ral G

over

nmen

t pl

ans

to a

lloca

te a

lum

p su

m fo

r ea

ch s

ubsi

dy t

o th

e co

ncer

ned

prov

ince

s, e

ntru

stin

g pr

ovin

cial

aut

horit

ies

with

the

calc

ulat

ion

and

dist

ribut

ion

of th

e su

bsid

y to

indi

vidu

al fa

rmer

s.

7AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Prod

uctio

n su

ppor

t

Chi

naJu

neSo

ybea

n, m

aize

The

Gov

ernm

ent

of C

hina

info

rmed

tha

t pu

blic

out

lays

for

pay

men

ts t

o en

cour

age

crop

ro

tatio

n w

ill to

tal C

NY

2.56

billi

on in

201

7, c

ompa

red

to C

NY

1.44

billi

on la

st y

ear (

resp

ectiv

ely

USD

376

milli

on a

nd U

SD 2

12 m

illion

). Fa

rmer

s w

ill co

ntin

ue to

rece

ive

per-h

ecta

re s

ubsi

dies

fo

r ro

tatin

g th

eir

mai

ze c

rops

with

oth

er c

rops

(not

ably

soy

bean

s) e

very

oth

er y

ear

as w

ell

as t

o le

ave

som

e la

nd f

allo

w (s

ee a

lso M

PPU

Jun

e’17

). Re

porte

dly,

the

area

tar

gete

d by

th

e su

bsid

ies

has

been

rai

sed

to 8

00 0

00 h

ecta

res,

abo

ut 8

5 pe

rcen

t mor

e th

an la

st y

ear.

Paym

ents

will

be c

once

ntra

ted

in t

he c

ount

ry’s

north

east

ern

prov

ince

s (w

here

, in

rec

ent

year

s, m

aize

exp

ande

d at

the

exp

ense

of

soyb

eans

) and

to

area

s de

emed

uns

uita

ble

for

mai

ze c

ultiv

atio

n.

8AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Prod

uctio

n su

ppor

t

Chi

naSe

ptem

ber

Soyb

ean,

mai

zeAc

cord

ing

to p

rivat

e so

urce

s, t

he s

ubsi

dy g

rant

ed t

o so

ybea

n pr

oduc

ers

in H

eilo

ngjia

ng

Prov

ince

(Chi

na’s

top

soyb

ean

grow

ing

regi

on) h

as b

een

set a

t CN

Y 11

8.58

per

mu

(USD

268

pe

r ha)

for t

he 2

016/

17 s

easo

n, i.

e. fo

r the

cro

p ha

rves

ted

in th

e fa

ll of l

ast y

ear.

The

paym

ent,

whi

ch is

par

t of t

he ta

rget

pric

e su

bsid

y pr

ogra

mm

e th

at w

as o

pera

ted

on a

pilo

t bas

is fr

om

2014

to 2

016

(see

MPP

U N

ov.’1

6 &

June

’17)

, is

supp

osed

to re

ach

farm

ers

by 1

5 Se

ptem

ber

2017

. For

com

paris

on, i

n 20

15/1

6, th

e su

bsid

y am

ount

ed to

CN

Y 15

0 pe

r mu

(USD

339

per

he

ctar

e). F

rom

201

7/18

, the

targ

et p

rice

syst

em w

ill be

dis

cont

inue

d an

d pr

oduc

er p

aym

ents

w

ill be

de-

coup

led

from

mar

ket p

rices

(see

also

MPP

U J

uly’

17).

Two

type

s of

pro

duce

rs w

ill be

elig

ible

to

rece

ive

paym

ents

: (i)

farm

ers

who

rot

ate

mai

ze w

ith o

ther

cro

ps –

prim

arily

so

ybea

ns, b

ut a

lso

tube

rs a

nd m

inor

gra

ins,

bea

ns a

nd o

ther

oils

eeds

; and

(ii)

farm

ers

that

ke

ep la

nd id

le to

reha

bilit

ate

degr

aded

farm

land

and

con

serv

e m

oist

ure

in m

argi

nal a

gric

ultu

ral

area

s. S

uppo

rt pa

ymen

ts a

re m

eant

to e

nsur

e th

at fa

rmer

inco

mes

will

not s

uffer

from

idlin

g la

nd o

r rot

atin

g cr

ops

that

ear

n lo

wer

retu

rns.

Rep

orte

dly,

the

com

pens

atio

n fo

r idl

ing

land

th

at c

ould

bea

r tw

o cr

ops

a ye

ar w

ill am

ount

to C

NY

800

per m

u, w

here

as C

NY

500

per m

u w

ill be

gra

nted

for s

ingl

e-se

ason

fallo

w (r

espe

ctiv

ely

USD

1 8

10 a

nd 1

132

per

ha)

. Det

ails

on

subs

idy

leve

ls fo

r cro

p ro

tatio

n ar

e no

t yet

ava

ilabl

e.

4 Oilcrops complex: Policy changes and industry measures - Annual compendium 2017

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

Chi

naN

ovem

ber

Soyb

ean,

mai

ze,

whe

atIn

Hei

long

jiang

Pro

vinc

e, s

uppo

rt pa

ymen

ts p

rovi

ded

to m

aize

gro

wer

s ha

ve b

een

low

ered

to

CN

Y 13

3.46

per

mu

(USD

303

per

ha)

, dow

n 13

per

cent

com

pare

d to

last

yea

r’s le

vel.

The

mea

sure

refl

ects

effo

rts t

o cu

rb n

atio

nal m

aize

pro

duct

ion

and

even

tual

ly lo

wer

dom

estic

st

ocks

– w

hile

enc

oura

ging

farm

ers

to p

lant

alte

rnat

ive

crop

s, n

otab

ly s

oybe

ans.

At t

he s

ame

time,

for s

oybe

ans,

the

targ

e-pr

ice

subs

idy

that

was

in p

lace

for t

he la

st th

ree

seas

ons

has

been

repl

aced

by

an a

rea-

base

d gr

ower

sub

sidy

am

ount

ing

to C

NY

173.

46 p

er m

u (U

SD 3

93

per h

a). M

eanw

hile

, the

cou

ntry

wid

e m

inim

um p

urch

ase

pric

e fo

r whe

at fo

r 201

8 w

as s

et a

t C

NY

2 30

0 pe

r ton

ne (U

SD 3

48),

2.5

perc

ent l

ower

than

this

yea

r and

the

first

cut

in o

ver a

de

cade

. The

latte

r cha

nge

is p

art o

f Gov

ernm

ent e

fforts

to b

ring

dom

estic

whe

at p

rices

mor

e in

line

with

bot

h th

e in

tern

atio

nal m

arke

t and

loca

l pro

duct

ion

cost

s, w

hile

incr

easi

ng fl

exib

ility

of th

e co

untry

’s gr

ain

rese

rve

syst

em. F

urth

erm

ore,

the

Gov

ernm

ent p

lans

to s

ubsi

dize

gra

in

trans

porta

tion

and

stor

age

faci

litie

s. U

nder

this

pol

icy,

proj

ects

des

igne

d to

bui

ld o

r upg

rade

gr

ain

trans

porta

tion

or s

tora

ge fa

cilit

ies

alon

g m

ain

railw

ays

and

ports

will

be s

ubsi

dize

d in

a

bid

to im

prov

e m

arke

t effi

cien

cy a

nd c

urb

dist

ribut

ion

cost

s.

10AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Prod

uctio

n su

ppor

t

Indi

aJa

nuar

yAg

ricul

tura

l cr

ops

Seek

ing

to m

inim

ize th

e im

pact

of la

st N

ovem

ber’s

dem

onet

izatio

n m

easu

re o

n th

e fa

rm se

ctor

(s

ee a

lso M

PPU

Dec

.’16)

, the

Gov

ernm

ent o

f Ind

ia h

as g

iven

its

ex-p

ost f

acto

app

rova

l for

a

two-

mon

th in

tere

st w

aive

r for

farm

ers

who

took

up

shor

t-ter

m c

rop

loan

s fro

m c

oope

rativ

e ba

nks.

Rep

orte

dly,

man

y fa

rmer

s fa

ced

diffi

culti

es in

car

ryin

g ou

t Rab

i cro

p op

erat

ions

due

to

the

low

er a

vaila

bilit

y of

cas

h th

at fo

llow

ed d

emon

etiza

tion.

11AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Prod

uctio

n su

ppor

t

Indi

aM

arch

Cop

raTh

e G

over

nmen

t of I

ndia

has

set

the

2017

pro

cure

men

t pric

e fo

r milli

ng a

nd b

all c

opra

at,

resp

ectiv

ely,

INR

65 0

00 (U

SD 1

004

) and

INR

67 8

50 (U

SD 1

048

) per

tonn

e –

i.e. 9

per

cent

ab

ove l

ast y

ear’s

leve

l. Ind

ia’s

Com

mis

sion

for A

gric

ultu

ral C

osts

and

Pric

es h

ad re

com

men

ded

the

incr

ease

in th

e m

inim

um s

uppo

rt pr

ice

(MSP

), ba

sed

on th

e an

alys

is o

f (i)

prod

uctio

n an

d pr

oces

sing

cos

ts, (

ii) tre

nds

in d

omes

tic a

nd in

tern

atio

nal p

rices

of e

dibl

e oi

ls, (

iii) th

e ov

eral

l de

man

d an

d su

pply

situ

atio

n fo

r cop

ra a

nd c

ocon

ut o

il, a

nd (i

v) th

e lik

ely

impa

ct o

f MSP

s on

co

nsum

ers.

The

new

MSP

for c

opra

is a

imed

at e

nsur

ing

rem

uner

ativ

e pr

ices

for f

arm

ers

and

stim

ulat

ing

inve

stm

ent i

n co

conu

t, th

ereb

y ra

isin

g pr

oduc

tion

and

prod

uctiv

ity in

the

coun

try’s

coco

nut i

ndus

try.

12AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Prod

uctio

n su

ppor

t

Indi

aJu

neAg

ricul

tura

l cr

ops

The

stat

es o

f Mah

aras

htra

, Pun

jab

and

Utta

r Pra

desh

agr

eed

to p

artia

lly w

aive

farm

loan

s to

ad

dres

s gro

win

g ru

ral d

istre

ss c

ause

d by

low

cro

p pr

ices

follo

win

g ov

ersu

pply.

Indi

a is

hol

ding

la

rge

leve

ls o

f foo

d gr

ains

from

last

yea

r’s re

cord

har

vest

, whi

le e

xpor

ts h

ave

stal

led

for

a nu

mbe

r of r

easo

ns. M

ahar

asht

ra a

nd P

unja

b in

tend

to fo

rgiv

e th

e eq

uiva

lent

of,

resp

ectiv

ely,

USD

5.2

7 bi

llion

and

USD

1.5

billi

on in

farm

loan

s, e

ffect

ivel

y w

ritin

g off

deb

ts o

f man

y sm

all

farm

hol

ding

s. R

epor

tedl

y, th

e m

easu

res

coul

d be

nefit

clo

se to

10

milli

on fa

rmer

s, w

ith w

rite-

offs

of u

p to

INR

150

000–

200

000

per f

arm

er (U

SD 2

325

–3 1

00).

13AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Prod

uctio

n su

ppor

t

Indi

aJu

neAg

ricul

tura

l in

puts

Acco

rdin

g to

med

ia s

ourc

es, t

he C

entra

l Gov

ernm

ent e

xhor

ted

priv

ate

com

pani

es to

low

er

the

pric

es o

f pes

ticid

es, s

eeds

and

oth

er a

gric

ultu

ral in

puts

to s

uppo

rt pu

blic

initi

ativ

es ta

ken

to a

ssis

t far

mer

s.

Oilcrops complex: Policy changes and industry measures - Annual compendium 2017 5

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

14AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Prod

uctio

n su

ppor

t

Indi

aJu

neO

ilcro

psIn

Indi

a, m

arke

t pric

es fo

r soy

bean

s an

d ot

her o

ilsee

ds re

porte

dly

drop

ped

belo

w M

SP le

vels

. To

pro

tect

farm

ers

from

the

rece

nt p

rice

decl

ines

and

pre

vent

a s

hift

in p

lant

ings

aw

ay fr

om

soyb

eans

and

oth

er o

ilsee

ds to

com

petin

g cr

ops,

the

Gov

ernm

ent r

aise

d th

e M

SPs

for K

harif

oi

lcro

ps b

y 4–

10 p

erce

nt a

nd to

rene

w th

e sp

ecia

l bon

uses

rese

rved

for c

rops

cha

ract

erize

d by

wid

enin

g do

mes

tic s

uppl

y de

ficits

. Pu

blic

offi

cial

s w

arne

d th

at b

uyin

g oi

lcro

ps b

elow

th

e go

vern

men

t-set

pric

es w

ould

attr

act

pros

ecut

ion.

Inc

ludi

ng b

onus

es,

the

MSP

s fo

r 20

17/1

8 ha

ve b

een

set a

s fo

llow

s: s

oybe

ans

INR

30 5

00 p

er to

nne

(USD

473

), up

10

perc

ent

from

last

yea

r’s le

vel;

grou

ndnu

ts-in

-she

ll IN

R 44

500

per

tonn

e (U

SD 6

90),

up 5

.5 p

erce

nt;

sunfl

ower

seed

IN

R 41

000

per

ton

ne (

USD

635

), up

3.8

per

cent

; se

sam

um I

NR

53 0

00

per

tonn

e (U

SD 8

21),

up 6

per

cent

; and

nig

erse

ed IN

R 40

500

(USD

627

), up

5.9

per

cent

. Fo

r co

mpa

rison

, the

sup

port

pric

es fo

r pa

ddy,

mai

ze, p

ulse

s an

d co

tton

have

bee

n ra

ised

by

, re

spec

tivel

y, 5

perc

ent,

4 pe

rcen

t, 7–

8 pe

rcen

t, an

d 4

perc

ent.

Farm

ers

and

indu

stry

as

soci

atio

ns m

aint

aine

d th

at p

ublic

mar

ket i

nter

vent

ions

con

tinue

to b

e in

suffi

cien

t to

supp

ort

the

MSP

s. T

hey

also

rene

wed

thei

r cal

ls fo

r oth

er re

med

ial a

ctio

ns, i

n pa

rticu

lar h

ighe

r im

port

dutie

s on

veg

etab

le o

ils. R

epor

tedl

y, th

e la

test

ero

sion

in s

oybe

an m

arke

t pric

es h

as b

een

trigg

ered

by

poor

dem

and

from

loca

l cru

sher

s an

d un

usua

lly la

rge

old-

crop

inve

ntor

ies,

whi

ch

esse

ntia

lly s

tem

from

unc

ompe

titiv

e pr

ices

of d

omes

tical

ly p

rodu

ced

soyb

ean

oil v

is-à

-vis

im

porte

d ve

geta

ble

oils

.

15AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Prod

uctio

n su

ppor

t

Indi

aAu

gust

Oilc

ropd

, pul

ses

The

stat

e G

over

nmen

t of M

adhy

a Pr

ades

h an

noun

ced

the

laun

ch o

f a s

chem

e to

com

pens

ate

farm

ers

for

dist

ress

sal

es a

t pr

ices

bel

ow t

he m

inim

um s

uppo

rt pr

ices

(MSP

) tha

t ar

e se

t an

nual

ly b

y th

e ce

ntra

l Gov

ernm

ent.

The

sche

me

will

initi

ally

app

ly to

sel

ecte

d oi

lsee

ds a

nd

puls

es, w

here

phy

sica

l pro

cure

men

t ten

ds to

be

limite

d un

like

for r

ice

and

whe

at. T

he in

itiat

ive

com

es o

n th

e ba

ck o

f a b

umpe

r har

vest

that

cau

sed

crop

pric

es to

dec

line,

trig

gerin

g pr

otes

ts

by fa

rmer

s ca

lling

for l

oan

wai

vers

and

mor

e re

mun

erat

ive

pric

es (s

ee a

lso M

PPU

Jul

y’17

). U

nder

the

sche

me,

farm

ers

will

be c

ompe

nsat

ed w

hen

crop

s ar

e so

ld a

t les

s th

an th

e M

SP.

Such

defi

cien

cy p

aym

ents

will

be c

appe

d at

a m

odal

pric

e, w

hich

is d

efine

d as

the

aver

age

mar

ket p

rice

obse

rved

ove

r a tw

o-m

onth

per

iod

in M

adhy

a Pr

ades

h an

d tw

o ot

her s

tate

s.

16AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Prod

uctio

n su

ppor

t

Indi

aSe

ptem

ber

Coc

onut

The

Gov

ernm

ent o

f Ker

ala

(the

coun

try’s

seco

nd la

rges

t coc

onut

gro

win

g st

ate)

urg

ed th

e ce

ntra

l go

vern

men

t C

omm

issi

on f

or A

gric

ultu

ral

Cos

ts a

nd P

rices

to

rais

e th

e m

inim

um

supp

ort p

rice

(MSP

) of c

opra

from

INR

67 7

00 p

er to

nne

to IN

R 97

250

per

tonn

e (re

spec

tivel

y U

SD 1

035

and

1 4

87).

Repo

rtedl

y, th

e Ag

ricul

tura

l Dep

artm

ent i

s als

o co

nsid

erin

g to

intro

duce

a

MSP

for r

aw c

ocon

ut a

mou

ntin

g to

INR

29 5

00 p

er to

nne

(USD

451

). C

urre

ntly,

ther

e is

no

MSP

for t

he p

rocu

rem

ent o

f raw

coc

onut

.

17AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Prod

uctio

n su

ppor

t

Indi

aN

ovem

ber

Oils

eeds

Min

imum

sup

port

pric

es fo

r Rab

i cro

ps (w

hich

are

sow

n in

Nov

embe

r/Dec

embe

r of t

his

year

fo

r har

vest

dur

ing

the

first

hal

f of 2

018)

hav

e be

en ra

ised

from

last

seas

on’s

leve

l. For

rape

seed

an

d sa

fflow

erse

ed, t

hey

have

bee

n se

t at,

resp

ectiv

ely,

INR

4 00

0 an

d IN

R 4

100

per q

uint

al

(USD

624

and

639

per

tonn

e), u

p 8

and

11 p

erce

nt y

ear-o

n-ye

ar. F

or c

ompa

rison

, sup

port

pric

es fo

r pul

ses

have

bee

n ra

ised

by

8–10

per

cent

and

thos

e fo

r Rab

i gra

ins

by 6

–7 p

erce

nt.

Mar

ket o

bser

vers

poi

nted

out

that

the

incr

ease

s may

be

insu

ffici

ent t

o off

set h

ighe

r pro

duct

ion

cost

s. M

ore

impo

rtant

ly, o

ilsee

ds g

row

ers

wou

ld o

nly

bene

fit fr

om th

e hi

gher

sup

port

pric

es if

st

ate

agen

cies

act

ually

sca

led

up c

rop

proc

urem

ent a

t the

est

ablis

hed

pric

es.

18AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Prod

uctio

n su

ppor

t

Indi

aDe

cem

ber

Toria

Indi

a’s

cent

ral G

over

nmen

t has

rai

sed

the

min

imum

sup

port

pric

e fo

r ‘to

ria’ (

bras

sica

rapa

su

bsp.

ole

ifera

), an

oils

eed

varie

ty m

ainl

y gr

own

in R

ajas

than

, by

9.5

perc

ent t

o IN

R 3

900

per

quin

tal (

USD

614

per

tonn

e).

6 Oilcrops complex: Policy changes and industry measures - Annual compendium 2017

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

19AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Prod

uctio

n su

ppor

t

Indo

nesi

aM

arch

Oil

palm

, mai

zeAc

cord

ing

to g

over

nmen

t offi

cial

s, I

ndon

esia

pla

ns t

o en

cour

age

inde

pend

ent

palm

oil

farm

ers

to in

trodu

ce m

aize

inte

rcro

ppin

g in

the

ir pl

anta

tions

– a

mea

sure

mea

nt t

o bo

ost

dom

estic

mai

ze p

rodu

ctio

n an

d th

us re

duce

the

depe

nden

ce o

n im

porte

d cr

ops.

Und

er th

e pl

an, m

aize

wou

ld b

e in

trodu

ced

in n

early

one

milli

on h

ecta

res

of o

il pa

lm p

lant

atio

ns b

y th

e en

d of

201

7. T

he g

over

nmen

t wou

ld p

rovi

de s

eeds

and

sub

sidi

zed

ferti

lizer

to fa

rmer

s w

ho

join

the

prog

ram

me.

Pla

ntin

g oi

l pal

m a

nd m

aize

sid

e by

sid

e is

exp

ecte

d to

impr

ove

land

use

effi

cien

cy, r

aise

pro

duct

ivity

and

incr

ease

farm

ers’

inco

mes

.

20AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Prod

uctio

n su

ppor

t

Indo

nesi

aM

ayO

il pa

lm

In 2

017,

Indo

nesi

a’s

Oil

Palm

Est

ate

Fund

– th

e st

ate

agen

cy s

et u

p in

201

5 to

col

lect

a le

vy

on c

rude

pal

m o

il ex

ports

(see

MPP

U J

uly’

15) –

pla

ns to

sup

port

the

Gov

ernm

ent’s

oil

palm

re

plan

ting

sche

me

with

an

allo

catio

n of

IDR

500

billio

n (U

SD 3

7.6

milli

on).

The

natio

nal s

chem

e is

aim

ed a

t rai

sing

pro

duct

ivity

leve

ls o

n sm

all,

inde

pend

ently

run

plan

tatio

ns, w

here

ave

rage

yi

elds

repo

rtedl

y st

alle

d at

1.7

tonn

es o

f pal

m o

il pe

r ha

– as

opp

osed

to u

p to

5.7

tonn

es

achi

eved

on

corp

orat

e-ru

n pl

anta

tions

. Low

pro

duct

ivity

leve

ls a

re p

rimar

ily a

ttrib

uted

to p

oor

qual

ity s

eeds

and

to th

e ci

rcum

stan

ce th

at p

alm

s ar

e cu

ltiva

ted

beyo

nd th

eir p

rodu

ctiv

e ag

e.

Priv

ate

sour

ces

poin

ted

out

that

the

gov

ernm

ent’s

initi

ativ

e fa

ces

impo

rtant

adm

inis

trativ

e hu

rdle

s in

that

man

y of

the

targ

eted

farm

ers

are

not a

ble

to p

rove

thei

r lan

d ow

ners

hip

– a

prer

equi

site

for p

artic

ipat

ing

in re

plan

ting

prog

ram

mes

.

21AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Prod

uctio

n su

ppor

t

Indo

nesi

aN

ovem

ber

Oil

palm

Indo

nesi

a’s

Gov

ernm

ent l

aunc

hed

an o

il pal

m re

juve

natio

n sc

hem

e fo

r sm

all o

il pal

m g

row

ers,

in

a b

id to

rais

e yi

elds

in s

mal

lhol

der p

lant

atio

ns (s

ee a

lso M

PPU

Jun

e’17

). Th

e sc

hem

e w

ill be

fund

ed b

y In

done

sia’

s O

il Pa

lm E

stat

e Fu

nd, a

n in

stru

men

t set

up

in 2

015

to c

olle

ct le

vies

on

pal

m o

il ex

ports

(see

MPP

U J

uly

‘15)

. Rep

orte

dly,

the

new

sch

eme

will

cove

r 20

000

ha

of s

mal

lhol

der

plan

tatio

ns i

n a

first

pha

se.

Act

ually

, ou

t of

4.7

milli

on h

a cu

ltiva

ted

by

smal

lhol

ders

nat

ionw

ide,

som

e 2.

4 m

illion

ha

are

said

to re

quire

repl

antin

g –

eith

er b

ecau

se

palm

s ha

ve s

urpa

ssed

the

ir pr

oduc

tive

age

or b

ecau

se p

oorly

per

form

ing

varie

ties

wer

e us

ed w

hen

plan

tatio

ns w

ere

esta

blis

hed.

Rep

orte

dly,

high

-yie

ldin

g va

rietie

s al

low

ann

ual

yiel

ds o

f 8 t

onne

s of

pal

m o

il pe

r ha

, com

pare

d to

the

cur

rent

ave

rage

of 2

ton

nes.

Onl

y fa

rmer

s w

hose

pla

ntat

ions

hav

e ea

rned

ISPO

(Ind

ones

ian

Sust

aina

ble

Palm

Oil)

certi

ficat

ion

will

be a

llow

ed to

par

ticip

ate

in th

e re

plan

ting

prog

ram

me.

Des

igne

d to

pro

mot

e su

stai

nabl

e pr

oduc

tion

prac

tices

and

ens

ure

com

plia

nce

with

nat

iona

l law

s, IS

PO c

ertifi

catio

n ha

s be

en

mad

e m

anda

tory

for c

ompa

nies

, whi

le re

mai

ning

vol

unta

ry fo

r sm

allh

olde

rs. I

n or

der t

o qu

alify

fo

r cer

tifica

tion,

farm

ers

need

to p

rove

lega

l ow

ners

hip

of th

eir l

and

– a

requ

irem

ent t

hat n

ot

all s

mal

lhol

ders

are

abl

e to

fulfi

ll, a

ccor

ding

to s

ocia

l adv

ocac

y gr

oups

.

22AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Prod

uctio

n su

ppor

t

Kaza

khst

anJa

nuar

yAg

ricul

tura

l cr

ops

The

Gov

ernm

ent o

f Kaz

akhs

tan

pres

ente

d a

prog

ram

me

for t

he d

evel

opm

ent o

f the

cou

ntry

’s ag

ro-in

dust

rial c

ompl

ex in

201

7-20

21. I

n ad

ditio

n to

impr

oved

acc

ess

to s

ubsi

dies

for s

mal

l/m

ediu

m-s

ized

farm

ers,

an

expa

nded

farm

insu

ranc

e sc

hem

e an

d hi

gher

irrig

ated

land

are

a,

the

plan

env

isag

es in

cent

ives

to

redu

ce w

heat

cul

tivat

ion

in f

avou

r of

coa

rse

grai

ns a

nd

oils

eeds

. Sta

rting

nex

t yea

r, pe

r hec

tare

sub

sidi

es fo

r whe

at p

rodu

cers

cou

ld b

e cu

t stro

ngly,

w

hile

thos

e fo

r mai

ze w

ould

fall

less

and

thos

e fo

r soy

bean

s, ra

pese

ed a

nd o

ther

oils

eeds

w

ould

be

rais

ed.

23AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Prod

uctio

n su

ppor

t

Kaza

khst

anN

ovem

ber

Oils

eeds

Furth

er to

the

refo

rms

anno

unce

d ea

rlier

this

yea

r (se

e M

PPU

Feb

.’17)

, gov

ernm

ent o

ffici

als

info

rmed

that

per

-hec

tare

oils

eed

subs

idie

s w

ill be

con

verte

d to

pay

men

ts p

er to

nne

deliv

ered

by

farm

ers

to lo

cal c

rush

ers.

Rep

orte

dly,

the

subs

idy

is a

imed

at

impr

ovin

g th

e su

pply

of

loca

l oils

eed

crus

hers

with

dom

estic

raw

mat

eria

ls. T

he s

ubsi

dy a

pplie

d to

farm

er d

eliv

erie

s w

ill am

ount

to K

ZT 4

000

, or U

SD 1

2, p

er to

nne

(and

wou

ld c

ompa

re to

a p

urch

ase

pric

e of

KZ

T 25

000

, or U

SD 7

4, p

er to

nne

paid

by

mille

rs).

Oilcrops complex: Policy changes and industry measures - Annual compendium 2017 7

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

24AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Prod

uctio

n su

ppor

t

Mex

ico

May

Agric

ultu

ral

crop

s, o

ilsee

dsW

hile

the

cou

ntry

’s m

ain

prog

ram

mes

in

supp

ort

of a

gric

ultu

ral

prod

uctio

n ar

e se

t to

re

mai

n in

pla

ce, t

he G

over

nmen

t an

noun

ced

cuts

in t

he a

mou

nt o

f su

bsid

ies

prov

ided

to

indi

vidu

al fa

rmer

s in

201

7, p

rovi

ding

the

follo

win

g de

tails

: i)

unde

r the

cou

ntry

’s Pr

o-O

ilsee

ds

prog

ram

me,

sup

port

paym

ents

will

drop

from

MXN

1 5

00 to

MXN

700

per

tonn

e of

oils

eeds

pr

oduc

ed (U

SD 8

3 to

USD

39)

; ii)

unde

r PRO

AGRO

, the

flat

rate

s pe

r ha

for a

rabl

e cr

ops

will

be lo

wer

ed fo

r com

mer

cial

farm

s bu

t not

for s

ubsi

sten

ce fa

rmer

s; a

nd ii

i) th

e pe

rcen

tage

of

hedg

ing

oper

atio

n co

sts

rece

ivin

g su

ppor

t will

be re

duce

d fro

m 8

5 to

75

perc

ent.

25AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Prod

uctio

n su

ppor

t

Turk

eyJa

nuar

yAg

ricul

tura

l cr

ops

In a

bid

to d

iver

sify

the

coun

try’s

agric

ultu

ral p

rodu

ctio

n, ra

ise

prod

uctiv

ity le

vels

and

redu

ce

the

culti

vatio

n of

wat

er-in

tens

ive

crop

s in

stru

ctur

ally

dis

adva

ntag

ed a

reas

, the

Gov

ernm

ent

of T

urke

y ha

s la

unch

ed a

new

agr

icul

tura

l sub

sidy

pro

gram

me.

Und

er t

he n

ew s

chem

e,

19 s

trate

gic

crop

s –

incl

udin

g so

ybea

n, s

unflo

wer

, saffl

ower

and

rape

seed

– w

ill be

elig

ible

fo

r pub

lic s

uppo

rt, s

tarti

ng th

is y

ear.

Subs

idie

s w

ill be

allo

cate

d ba

sed

on c

limat

e an

d so

il co

nditi

ons

prev

ailin

g in

eac

h zo

ne, a

nd w

ill be

dis

burs

ed in

two

annu

al in

stal

men

ts. M

arke

ts

obse

rver

s ex

pect

farm

ers’

pla

ntin

g de

cisi

ons

to b

e aff

ecte

d by

the

new

sys

tem

; in

parti

cula

r, in

som

e ar

eas,

farm

ers

coul

d re

plac

e m

aize

with

cot

ton,

oils

eeds

, pul

ses

and

whe

at.

26AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Sect

or d

evel

opm

ent

mea

sure

s

Burk

ina

Faso

Janu

ary

Soyb

ean

The

Gov

ernm

ent o

f Bur

kina

Fas

o jo

ined

forc

es w

ith tw

o as

soci

atio

ns re

pres

entin

g th

e Fr

ench

ve

geta

ble

oils

/pro

tein

sec

tor

to d

evel

op t

he c

ount

ry’s

soyb

ean

sect

or. T

o ad

dres

s Bu

rkin

a Fa

so’s

grow

ing

dem

and

for

vege

tabl

e oi

l and

pro

tein

(to

be u

sed

for

hum

an c

onsu

mpt

ion

and

anim

al fe

ed),

the

proj

ect a

ims

at li

fting

ann

ual d

omes

tic s

oybe

an o

utpu

t fro

m c

urre

ntly

20

000

tonn

es to

100

000

tonn

es b

y 202

2. In

terv

entio

ns w

ill fo

cus o

n (i)

rais

ing

prod

uctiv

ity a

nd

yiel

ds in

the

field

, (ii)

stre

ngth

enin

g pr

oduc

er o

rgan

izatio

ns, (

iii) c

onso

lidat

ing

the

proc

essi

ng

sect

or, (

iv) c

reat

ing

a na

tiona

l soy

bean

ass

ocia

tion,

and

(v) e

stab

lishi

ng a

sec

tor d

evel

opm

ent

fund

.

27AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Sect

or d

evel

opm

ent

mea

sure

s

Can

ada

May

Rape

seed

A pu

blic

-priv

ate

rese

arch

par

tner

ship

to d

evel

op a

dvan

ced

high

-yie

ldin

g ra

pese

ed v

arie

ties

has

been

set

up

in C

anad

a, in

a b

id to

uph

old

the

com

petit

iven

ess

of th

e co

untry

’s ra

pese

ed

sect

or.

The

new

pla

tform

will

oper

ate

unde

r C

anad

a’s

Gen

omic

App

licat

ions

Par

tner

ship

Pr

ogra

m (G

APP)

and

is se

t to

bene

fit fr

om c

o-fu

ndin

g by

the

prov

inci

al G

over

nmen

t of O

ntar

io.

28AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Sect

or d

evel

opm

ent

mea

sure

s

Euro

pean

Uni

onJu

neSo

ybea

nTh

e G

over

nmen

ts o

f G

erm

any

and

Hun

gary

pro

pose

d an

EU

-wid

e in

itiat

ive

– ca

lled

“EU

So

ya D

ecla

ratio

n” –

pro

mot

ing

the

prod

uctio

n of

non

-GM

soy

bean

s an

d ot

her

legu

me

crop

s fo

r foo

d an

d fe

ed. T

he p

rogr

amm

e is

mea

nt to

con

tribu

te to

the

deve

lopm

ent o

f mor

e su

stai

nabl

e an

d re

silie

nt a

gric

ultu

ral s

yste

ms,

whi

le ta

king

into

acc

ount

gro

win

g de

man

d fo

r G

M-fr

ee fo

ods.

The

initi

ativ

e is

als

o de

sign

ed to

tack

le th

e bl

oc’s

high

rate

of d

epen

denc

y on

impo

rted

soyb

eans

, whi

ch s

uppo

sedl

y m

akes

Eur

opea

n ag

ricul

ture

vul

nera

ble

to e

xter

nal

mar

ket c

ondi

tions

. Rep

orte

dly,

seve

ral E

U m

embe

r sta

tes

are

read

y to

bac

k th

e de

clar

atio

n.

Back

in 2

013,

con

cern

ed b

y th

e de

arth

of n

on-G

M s

oy o

n th

e EU

mar

ket,

the

priv

ate

sect

or

laun

ched

an

initi

ativ

e to

pro

mot

e th

e im

porta

tion

of G

M-fr

ee s

oy fr

om B

razil

, with

a v

iew

to

offer

Eur

opea

n co

nsum

ers

the

choi

ce to

buy

non

-GM

food

pro

duct

s (s

ee M

PPU

Jun

e’13

).

8 Oilcrops complex: Policy changes and industry measures - Annual compendium 2017

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

Euro

pean

Uni

onJu

lySo

ybea

nIn

Jun

e, th

irtee

n EU

mem

ber s

tate

s si

gned

the

‘Eur

opea

n So

ya D

ecla

ratio

n’ (s

ee a

lso M

PPU

Ju

ly’17

). Th

e de

clar

atio

n su

ppor

ts n

atio

nal a

nd E

U-w

ide

initi

ativ

es to

incr

ease

the

prod

uctio

n of

legu

me

crop

s, n

otab

ly s

oybe

ans,

as

a co

ntrib

utio

n to

the

deve

lopm

ent o

f mor

e su

stai

nabl

e an

d re

silie

nt a

gric

ultu

ral s

yste

ms i

n Eu

rope

. Sig

nato

ries u

nder

lined

the

initi

ativ

es’ p

oten

tial r

ole

in b

oost

ing

the

prod

uctio

n of

non

-GM

soy

a in

Eur

ope

and

in re

duci

ng th

e bl

oc’s

depe

nden

ce

on i

mpo

rted

soyb

ean.

Rea

ctin

g to

the

int

ergo

vern

men

tal

initi

ativ

e, i

ndus

try a

ssoc

iatio

ns

repr

esen

ting

the

EU’s

grai

n, o

ilsee

d an

d fe

ed s

ecto

r cal

led

for a

coh

eren

t stra

tegy

to a

ddre

ss

the

regi

on’s

prot

ein

defic

it. In

this

rega

rd, t

he a

ssoc

iatio

ns p

oint

ed o

ut th

at th

e EU

’s la

test

pr

opos

als

on b

iofu

els

– vi

z. th

e gr

adua

l pha

sing

out

of c

rop-

base

d bi

ofue

ls –

cou

ld tr

ansl

ate

into

fallin

g EU

oilc

rop

prod

uctio

n (in

par

ticul

ar ra

pese

ed),

henc

e re

duci

ng th

e av

aila

bilit

y of

pr

otei

n-ric

h m

eals

. As

to

the

obje

ctiv

e of

pro

mot

ing

sust

aina

ble

and

resi

lient

pro

duct

ion

syst

ems,

indu

stry

repr

esen

tativ

es d

rew

atte

ntio

n to

pro

gres

s m

ade

by E

urop

ean

stak

ehol

ders

an

d th

eir o

vers

eas

partn

ers

in re

spon

sibl

e so

urci

ng. F

inal

ly, w

ith re

gard

to n

on-G

M s

oya,

the

indu

stry

mai

ntai

ned

that

the

non

-GM

/GM

sta

tus

was

not

a c

riter

ion

for

sust

aina

bilit

y an

d re

com

men

ded

that

the

choi

ce fo

r one

or t

he o

ther

qua

lity

be le

ft to

the

mar

ket.

30AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Sect

or d

evel

opm

ent

mea

sure

s

Indi

aM

arch

Coc

onut

pal

mTh

e In

dian

Coc

onut

Dev

elop

men

t Boa

rd a

gree

d to

sup

port

38 p

roje

cts

wor

th IN

R 60

0 m

illion

(U

SD 9

.3 m

illion

). O

ut o

f the

tota

l, 32

pro

ject

s w

ill fo

cus

on c

ocon

ut p

roce

ssin

g an

d pr

oduc

t di

vers

ifica

tion,

thr

ee o

n m

arke

t pr

omot

ion,

and

thr

ee o

n re

sear

ch.

The

Boar

d’s

finan

cial

co

ntrib

utio

n w

ill am

ount

to IN

R 91

milli

on (U

SD 1

.4 m

illion

). Th

e pr

ojec

ts w

ill be

loca

ted

in th

e st

ates

of K

eral

a, K

arna

taka

, Tam

il N

adu

and

Andh

ra P

rade

sh.

31AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Sect

or d

evel

opm

ent

mea

sure

s

Indi

aM

ayO

il pa

lm

In a

bid

to re

duce

the

natio

n’s

relia

nce

on im

porte

d ed

ible

oil,

Indi

a’s

Fede

ral G

over

nmen

t will

step

up

its e

fforts

to p

rom

ote

oil p

alm

cul

tivat

ion

acro

ss th

e co

untry

(see

also

MPP

U J

une’

16).

Rest

rictio

ns o

n pr

ovid

ing

assi

stan

ce to

pla

ntat

ions

cul

tivat

ing

mor

e th

an 2

5 ha

will

be re

laxe

d,

and

crite

ria f

or d

istri

butin

g su

ppor

t pa

ymen

ts (

for

plan

ting

mat

eria

l, m

anur

ing,

irri

gatio

n,

inte

r-cro

ppin

g an

d m

aint

enan

ce c

osts

) are

set

to

be r

evis

ed. B

oth

mea

sure

s ar

e ai

med

at

attra

ctin

g pr

ivat

e en

trepr

eneu

rs, c

orpo

rate

ent

ities

and

coo

pera

tive

bodi

es to

war

ds p

alm

oil.

Th

e ch

ange

s w

ill be

impl

emen

ted

in 1

33 d

istri

cts

acro

ss 1

2 st

ates

, prim

arily

in th

e so

uthe

rn

part

of th

e co

untry

. For

201

6, In

dia’

s to

tal a

rea

unde

r oil

palm

cul

tivat

ion

was

est

imat

ed a

t 30

0 00

0 ha

(com

pris

ing

imm

atur

e ar

ea),

with

ave

rage

yie

lds

linge

ring

arou

nd 0

.5 to

nne

of o

il pe

r ha

due

to in

suffi

cien

t rai

nfal

l. In

the

mea

ntim

e, ro

ughl

y 60

per

cent

of t

he c

ount

ry’s

edib

le

oil r

equi

rem

ents

con

tinue

to b

e sa

tisfie

d th

roug

h im

ports

, with

pal

m o

il ac

coun

ting

for a

bout

75

per

cent

of t

he c

ount

ry’s

edib

le o

il im

port

bill.

32AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Sect

or d

evel

opm

ent

mea

sure

s

Indi

aM

ayO

il pa

lm

The

Gov

ernm

ent

of

Tela

ngan

a w

ill pr

omot

e th

e es

tabl

ishm

ent

of

oil

plan

tatio

ns

on

12 0

00 h

ecta

res

in th

e ea

ster

n pa

rt of

the

stat

e. T

he s

tate

sub

sidy

on

palm

see

dlin

gs w

ill be

ra

ised

from

INR

56 to

INR

80, w

hich

leav

es th

e fa

rmer

with

a c

ost o

f abo

ut IN

R 10

per

pla

nt

(1 U

SD =

64

INR)

. Som

e 45

0 00

0 se

edlin

gs a

re b

eing

rais

ed in

loca

l nur

serie

s in

sup

port

of

the

prog

ram

me.

33AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Sect

or d

evel

opm

ent

mea

sure

s

Indi

aSe

ptem

ber

Coc

onut

Indi

a’s

Coc

onut

Dev

elop

men

t Bo

ard

anno

unce

d th

at i

t w

ill su

ppor

t 30

pro

ject

s w

ith a

n ag

greg

ate

valu

e of

INR

313.

4 m

illion

(USD

4.8

milli

on).

The

boar

d’s

own

finan

cial

con

tribu

tion

will

amou

nt to

INR

63.9

milli

on (U

SD 0

.98

milli

on).

The

appr

oved

pro

ject

s w

ill be

impl

emen

ted

in fi

ve d

iffer

ent s

tate

s an

d co

mpr

ise

8 re

sear

ch p

roje

cts

and

22 p

roje

cts

on p

roce

ssin

g an

d pr

oduc

t div

ersi

ficat

ion.

Oilcrops complex: Policy changes and industry measures - Annual compendium 2017 9

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

34AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Sect

or d

evel

opm

ent

mea

sure

s

Indi

aSe

ptem

ber

Coc

onut

The

Gov

ernm

ent

of K

eral

a an

noun

ced

a 10

-yea

r pl

an t

o su

ppor

t th

e de

velo

pmen

t of

the

st

ate’

s pr

oble

m-s

trick

en c

ocon

ut s

ecto

r. G

row

ing

farm

ing

cost

s, l

ow p

rodu

ctiv

ity l

evel

s an

d st

agna

ting

inco

mes

hav

e be

en i

dent

ified

as

mai

n di

fficu

lties

affl

ictin

g th

e se

ctor

. C

ompl

emen

ting

Kera

la’s

effor

ts, t

he F

eder

al G

over

nmen

t is

plan

ning

to s

et u

p a

com

mitt

ee

to c

oord

inat

e co

conu

t re

late

d ac

tiviti

es o

f ce

ntra

l and

sta

te-le

vel a

genc

ies,

incl

udin

g th

e Ag

ricul

ture

Dep

artm

ent,

Kera

la A

gric

ultu

ral U

nive

rsity

, the

Cen

tral P

lant

atio

n C

rops

Res

earc

h In

stitu

te, t

he C

ocon

ut D

evel

opm

ent B

oard

and

Ker

afed

(the

ape

x co

-ope

rativ

e fe

dera

tion

of

coco

nut f

arm

ers

in K

eral

a an

d In

dia’

s la

rges

t pro

duce

r of c

ocon

ut o

il).

35AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Sect

or d

evel

opm

ent

mea

sure

s

Indi

aSe

ptem

ber

Mus

tard

see

dRe

porte

dly,

‘Sys

tem

Roo

t Int

ensi

ficat

ion’

(SRI

), a

culti

vatio

n m

etho

d po

pula

r in

rice

farm

ing,

ha

s be

en s

ucce

ssfu

lly te

sted

on

mus

tard

seed

and

oth

er s

peci

es o

f the

bra

ssic

a fa

mily

in fi

ve

stat

es in

Indi

a. A

llege

dly,

the

tech

niqu

e, w

hich

invo

lves

pla

ntin

g of

sap

lings

inst

ead

of s

owin

g se

eds,

allo

ws

to s

igni

fican

tly in

crea

se y

ield

s. T

he m

etho

d en

tails

: (i)

tran

spla

ntin

g 8–

15 d

ays

old

sapl

ings

at r

elat

ivel

y la

rger

dis

tanc

e; (i

i) pr

efer

ring

natu

ral c

ompo

st to

syn

thet

ic fe

rtiliz

er;

(iii) e

arly

and

regu

lar w

eedi

ng; a

nd (iv

) car

eful

wat

er m

anag

emen

t. Th

e la

bour

inte

nsiv

e m

etho

d is

sai

d to

be

suita

ble

for f

arm

ers

with

sm

all l

and

hold

ings

and

spa

re la

bour

forc

e. F

arm

ers

are

advi

sed

to u

se c

onve

ntio

nal (

non-

GM

) lon

g-du

ratio

n va

rietie

s de

velo

ped

by t

he In

dian

Ag

ricul

tura

l Res

earc

h In

stitu

te.

36AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Sect

or d

evel

opm

ent

mea

sure

s

Indo

nesi

aJa

nuar

yC

ocon

utFo

r 20

17,

the

Gov

ernm

ent

of I

ndon

esia

has

allo

cate

d ID

R 28

billi

on (

USD

2.1

milli

on)

to

impr

ove

dom

estic

coc

onut

pro

duct

ion,

acc

ordi

ng to

the

loca

l pre

ss. H

ighe

r dom

estic

out

put i

s ne

eded

to m

eet g

row

ing

dem

and

for r

aw m

ater

ials

by

loca

l indu

strie

s. R

epor

tedl

y, In

done

sia’

s co

untry

wid

e co

conu

t cul

tivat

ion

prog

ram

me

will

incl

ude

(i) c

arry

ing

out a

com

plet

e in

vent

ory

on c

ocon

ut; (

ii) re

juve

natio

n of

coc

onut

sta

nds

in k

ey g

row

ing

regi

ons;

(iii)

map

ping

hig

h-yi

eldi

ng m

othe

r pal

ms

for s

eedl

ing

prod

uctio

n; a

nd (i

v) s

treng

then

ing

exis

ting

and

setti

ng u

p ne

w n

urse

ries.

37AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Sect

or d

evel

opm

ent

mea

sure

s

Indo

nesi

aAu

gust

Oil

palm

Th

e G

over

nmen

t of I

ndon

esia

issu

ed a

n oi

l pal

m re

plan

ting

plan

invo

lvin

g 4.

7 m

illion

hec

tare

s of

pla

ntat

ion.

The

initi

ativ

e is

aim

ed a

t boo

stin

g th

e cr

op’s

prod

uctiv

ity. R

epor

tedl

y, av

erag

e yi

elds

dro

pped

to 2

–3 to

nnes

of p

alm

oil

per h

ecta

re d

ue to

the

dete

riora

ting

age

stru

ctur

e of

th

e co

untry

’s oi

l pal

ms.

38AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Sect

or d

evel

opm

ent

mea

sure

s

Iran

(Isla

mic

Re

publ

ic o

f)Ju

neSo

ybea

nTh

e G

over

nmen

t of t

he Is

lam

ic R

ep. o

f Ira

n an

d th

e U

N F

ood

and

Agric

ultu

re O

rgan

izatio

n la

unch

ed a

two-

year

tech

nica

l coo

pera

tion

proj

ect f

or th

e pr

omot

ion

of s

usta

inab

le o

ilsee

d pr

oduc

tion

in t

he c

ount

ry,

with

par

ticul

ar a

ttent

ion

give

n to

the

soy

bean

val

ue c

hain

. U

ltim

atel

y, th

e pr

ojec

t aim

s at

redu

cing

the

coun

try’s

stro

ng d

epen

denc

e on

impo

rted

oils

eed

prod

ucts

: cu

rrent

ly, a

bout

90

perc

ent o

f dom

estic

veg

etab

le o

il and

oilm

eal c

onsu

mpt

ion

are

met

thro

ugh

impo

rts.

39AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Sect

or d

evel

opm

ent

mea

sure

s

Keny

aM

arch

Coc

onut

pal

mKe

nya’

s N

uts

and

Oilc

rops

Dire

ctor

ate

anno

unce

d th

at it

will

dist

ribut

e 2.

1 m

illion

qua

lity

coco

nut

seed

lings

to

farm

ers

in t

he c

ount

ry’s

coas

tal

regi

on t

o bo

ost

prod

uctio

n an

d st

reng

then

the

coco

nut v

alue

cha

in (s

ee a

lso M

PPU

Mar

.’15)

. To

rais

e pr

oduc

tivity

, far

mer

s w

ill be

enc

oura

ged

to re

plac

e se

nile

and

non

-pro

duct

ive

trees

. Rep

orte

dly,

the

mai

n pr

oble

ms

affec

ting

Keny

a’s

coco

nut s

ecto

r are

: lac

k of

ade

quat

e re

sear

ch; p

oor a

gron

omic

al p

ract

ices

; la

ck o

f app

ropr

iate

and

affo

rdab

le te

chno

logy

; exp

loita

tion

by m

iddl

emen

; and

lack

of a

cces

s to

cre

dit f

acilit

ies

by th

e sm

allh

olde

r far

mer

s.

10 Oilcrops complex: Policy changes and industry measures - Annual compendium 2017

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

40AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Sect

or d

evel

opm

ent

mea

sure

s

Mor

occo

May

Oliv

e oi

lAs

par

t of t

heir

cont

inui

ng s

uppo

rt to

Mor

occo

’s ol

ive

oil s

ecto

r, FA

O a

nd th

e Eu

rope

an B

ank

for

Reco

nstru

ctio

n an

d De

velo

pmen

t (E

BRD)

, in

colla

bora

tion

with

Inte

rpro

live,

Mor

occo

’s ol

ive

oil i

ndus

try a

ssoc

iatio

n, o

rgan

ized

a se

ries

of w

orks

hops

to

stre

ngth

en t

he c

ount

ry’s

oliv

e oi

l sec

tor.

The

initi

ativ

e br

ough

t tog

ethe

r pub

lic a

nd p

rivat

e st

akeh

olde

rs. D

iscu

ssio

ns

focu

sed

on h

ow t

o im

prov

e th

e se

ctor

’s in

ter-p

rofe

ssio

nal o

rgan

izatio

n an

d en

sure

qua

lity

prod

uctio

n. In

the

mea

ntim

e, In

terp

roliv

e st

arte

d pr

ovid

ing

tech

nica

l ass

ista

nce

to it

s mem

bers

an

d la

unch

ed a

cam

paig

n to

enc

oura

ge M

oroc

can

cons

umer

s to

buy

bet

ter q

ualit

y ol

ive

oil

pack

aged

in b

ottle

s.

41AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Sect

or d

evel

opm

ent

mea

sure

s

Nig

eria

June

Oil

palm

Ac

cord

ing

to p

ress

repo

rts, N

iger

ia’s

Raw

Mat

eria

ls R

esea

rch &

Dev

elop

men

t Cou

ncil (

RMRD

C)

dist

ribut

ed 1

0 00

0 se

edlin

gs o

f a h

igh-

yiel

ding

oil

palm

var

iety

to fa

rmer

s as

soci

atio

ns a

nd

coop

erat

ives

with

a vi

ew to

(i) b

oost

the

prod

uctio

n of

raw

mat

eria

ls fo

r the

cou

ntry

’s ve

geta

ble

oil in

dust

ry, (

ii) di

vers

ify a

gric

ultu

ral p

rodu

ctio

n, a

nd (i

ii) re

duce

relia

nce

on im

porte

d pr

oduc

ts

(see

also

MPP

U J

une/

Nov

.’14

& Au

g.’1

5). T

he in

itiat

ive

is lin

ked

to a

fede

ral p

rogr

amm

e ai

med

at

dev

elop

ing

one

milli

on h

ecta

res

of o

il pa

lm o

ver fi

ve y

ears

. Rep

orte

dly,

RMRD

C w

ill al

so

colla

bora

te w

ith p

rivat

e se

ctor

inve

stor

s to

pro

mot

e th

e es

tabl

ishm

ent o

f veg

etab

le o

il refi

ning

an

d ol

eoch

emic

al p

lant

s in

the

coun

try.

42AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Sect

or d

evel

opm

ent

mea

sure

s

Paki

stan

Mar

chRa

pese

edA

stat

e-fu

nded

pro

ject

for

enha

ncin

g oi

lsee

d pr

oduc

tivity

has

bee

n la

unch

ed in

Pak

ista

n’s

Khyb

er P

akht

unkh

wa

Prov

ince

. Th

e pr

ojec

t, w

hich

was

des

igne

d to

pro

vide

hig

h-qu

ality

ce

rtifie

d ra

pese

ed to

farm

ers,

will

incl

ude

the

mul

tiplic

atio

n, p

rocu

rem

ent a

nd m

arke

ting

of

a hi

gh-y

ield

ing

rape

seed

var

iety

. The

pro

ject

will

be im

plem

ente

d in

col

labo

ratio

n w

ith th

e pr

ivat

e se

ed b

usin

ess

and

loca

l ext

ract

ion

indu

stry

.

43AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Sect

or d

evel

opm

ent

mea

sure

s

Paki

stan

Nov

embe

rSu

nflow

er s

eed

To s

timul

ate

dom

estic

oils

eed

prod

uctio

n an

d th

us h

elp

redu

ce t

he c

ount

ry’s

depe

nden

ce

on e

dibl

e oi

l im

ports

, far

mer

s cu

ltiva

ting

sunfl

ower

see

d in

Pun

jab

Prov

ince

will

rece

ive

a su

bsid

y of

PKR

5 0

00 p

er a

cre

(USD

45

per h

a). T

he lo

cal G

over

nmen

t als

o pl

ans

to s

et u

p re

gion

al s

unflo

wer

pro

cure

men

t cen

ters

(in

coop

erat

ion

with

the

coun

try’s

solv

ent e

xtra

ctor

s as

soci

atio

n), t

o en

sure

that

farm

ers

rece

ive

the

guar

ante

ed p

rice

of P

KR 6

2 50

0 pe

r ton

ne

(USD

568

).

44AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Sect

or d

evel

opm

ent

mea

sure

s

Philip

pine

sSe

ptem

ber

Coc

onut

The

Gov

ernm

ent o

f the

Phi

lippi

nes

has

allo

cate

d PH

P 1.

4 bi

llion

(USD

27.

2 m

illion

) to

the

coun

try’s

Coc

onut

Aut

horit

y fo

r the

yea

r 201

8, m

atch

ing

the

curre

nt y

ear’s

leve

l. Ac

cord

ing

to th

e ag

ency

, the

bul

k of

the

reso

urce

s w

ill be

use

d fo

r rep

lant

ing

coco

nut t

rees

nat

ionw

ide.

Pr

ojec

ts o

n fe

rtiliz

atio

n, R

&D a

nd d

iver

sific

atio

n in

to h

igh-

valu

e co

conu

t pro

duct

s w

ill al

so

be s

uppo

rted.

With

rega

rd to

pla

ntin

gs, t

he a

genc

y’s ta

rget

is to

sup

port

the

plan

ting

of a

t le

ast 1

0 m

illion

pal

ms

in 2

017,

15

milli

on p

alm

s in

201

8, a

nd 2

0 m

illion

pal

ms

year

ly s

tarti

ng

in 2

019.

45AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Sect

or d

evel

opm

ent

mea

sure

s

Philip

pine

sDe

cem

ber

Coc

onut

The

Philip

pine

Coc

onut

Aut

horit

y pl

ans

to d

istri

bute

20

milli

on c

ocon

ut s

eedl

ings

dur

ing

the

2018

–202

0 pe

riod

via

its n

atio

nal r

epla

ntin

g pr

ogra

mm

e, in

a b

id to

revi

taliz

e th

e co

untry

’s co

conu

t ind

ustry

(see

also

MPP

U J

uly’

16 &

Oct

.’17)

.

46AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Sect

or d

evel

opm

ent

mea

sure

s

Russ

ian

Fede

ratio

nSe

ptem

ber

Fish

oil/

mea

lAs

par

t of i

ts n

ewly

issu

ed lo

ng-te

rm d

evel

opm

ent s

trate

gy fo

r the

cou

ntry

’s fis

hing

indu

stry

, th

e G

over

nmen

t of t

he R

ussi

an F

eder

atio

n in

tend

s to

rais

e do

mes

tic p

rodu

ctio

n of

fish

mea

l, fis

hoil

and

fish

feed

fro

m p

elag

ic s

peci

es,

with

a v

iew

to

supp

ort

grow

th in

the

nat

ion’

s aq

uacu

lture

indu

stry

.

Oilcrops complex: Policy changes and industry measures - Annual compendium 2017 11

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

47AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Sect

or d

evel

opm

ent

mea

sure

s

Sri L

anka

Mar

chC

ocon

ut p

alm

In S

ri La

nka,

the

Min

istry

of P

rimar

y In

dust

ries

and

the

Min

istry

of P

lant

atio

ns a

re p

lann

ing

to jo

intly

laun

ch a

pro

gram

me

to in

crea

se d

omes

tic c

ocon

ut c

ultiv

atio

n. A

key

obj

ectiv

e of

th

e in

itiat

ive

will

be to

cat

er fo

r gro

win

g in

tern

atio

nal d

eman

d fo

r hig

h va

lue-

adde

d co

conu

t pr

oduc

ts.

48AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Sect

or d

evel

opm

ent

mea

sure

s

Sri L

anka

May

Coc

onut

Giv

en th

e pr

evai

ling

shor

tage

of c

ocon

ut in

the

dom

estic

mar

ket,

the

Gov

ernm

ent o

f Sri

Lank

a is

con

side

ring

to li

bera

lize

the

impo

rtatio

n of

hus

ked

coco

nuts

and

fres

h co

conu

t ker

nel.

The

Gov

ernm

ent m

ay a

lso

allo

w in

vest

men

t int

o fre

sh c

ocon

ut m

illing

cap

acity

, with

a v

iew

to

fost

er d

omes

tic v

alue

add

ition

and

exp

orts

. Acc

ordi

ng to

gov

ernm

ent o

ffici

als,

a fa

st-g

row

ing

inte

rnat

iona

l mar

ket f

or v

alue

-add

ed c

ocon

ut p

rodu

cts

(suc

h as

virg

in c

ocon

ut o

il, c

ocon

ut

milk

and

coc

onut

cre

am) h

as o

pene

d ne

w o

ppor

tuni

ties

for l

ocal

pro

cess

ors.

49AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Sect

or d

evel

opm

ent

mea

sure

s

Sri L

anka

Sept

embe

rC

ocon

utTh

e G

over

nmen

t of S

ri La

nka

set a

side

LKR

200

milli

on (U

SD 1

.3 m

illion

) for

the

deve

lopm

ent o

f co

conu

t pro

duct

ion

in th

e co

untry

’s N

orth

ern

and

East

ern

prov

ince

s. P

ublic

inte

rven

tions

will

conc

entra

te o

n: (

i) id

entif

ying

sui

tabl

e la

nd; (

ii) th

e es

tabl

ishm

ent o

f nur

serie

s an

d di

strib

utio

n of

pla

ntlin

gs; (

iii) s

ettin

g up

mod

el c

ocon

ut g

arde

ns; a

nd (i

v) in

frast

ruct

ure

deve

lopm

ent.

50AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Sect

or d

evel

opm

ent

mea

sure

s

Sri L

anka

Nov

embe

rO

il pa

lmAt

tract

ed b

y gr

owin

g in

tern

atio

nal d

eman

d fo

r pal

m o

il, S

ri La

nkan

pla

ntat

ion

com

pani

es a

re

plan

ning

to e

xpan

d th

e co

untry

’s ar

ea u

nder

oil

palm

cul

tivat

ion

and

are

callin

g fo

r inc

reas

ed

publ

ic s

uppo

rt to

do

so. R

epor

tedl

y, th

e ce

ntra

l Gov

ernm

ent e

nvis

ages

tota

l cul

tivat

ed a

rea

to re

ach

20 0

00 h

ecta

res,

com

pare

d to

8 5

00 h

ecta

res

at p

rese

nt. H

owev

er, i

ndus

try e

xper

ts

poin

ted

out t

hat p

lant

atio

n co

mpa

nies

face

resi

stan

ce a

t the

loca

l gov

ernm

ent a

nd p

rovi

ncia

l co

unci

l lev

el.

51AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Sect

or d

evel

opm

ent

mea

sure

s

Thai

land

Mar

chC

ocon

ut p

alm

Thai

coc

onut

pro

duct

ion

is r

epor

ted

to h

ave

decl

ined

ste

adily

ove

r th

e pa

st fi

ve y

ears

be

caus

e of

dro

ught

and

des

truct

ive

pest

s. To

add

ress

the

resu

lting

sup

ply

shor

tage

s an

d ha

lt im

ports

of c

ocon

ut p

rodu

cts,

the

gove

rnm

ent h

as in

stru

cted

sta

te a

genc

ies

to d

evel

op a

ctio

n pl

ans

for b

oost

ing

dom

estic

pro

duct

ion.

The

pla

ns s

houl

d fo

cus

on e

xpan

ding

the

coun

try’s

plan

tatio

n ar

ea a

nd p

rom

otin

g su

itabl

e hi

gh-y

ield

ing

coco

nut v

arie

ties.

52AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Sect

or d

evel

opm

ent

mea

sure

s

Ukr

aine

Mar

chSo

ybea

nTh

e G

over

nmen

t of

Ukr

aine

ple

dged

to

supp

ort

furth

er g

row

th i

n do

mes

tic s

oybe

an

prod

uctio

n. R

epor

tedl

y, ar

eas

whe

re s

oybe

an p

rodu

ctio

n ca

n be

exp

ande

d w

ill be

iden

tified

an

d th

e ad

optio

n of

mod

ern

prod

uctio

n te

chno

logi

es –

inc

ludi

ng i

n th

e fie

ld o

f or

gani

c pr

oduc

tion

– w

ill be

pro

mot

ed.

53AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Sect

or d

evel

opm

ent

mea

sure

s

Uni

ted

Stat

esSe

ptem

ber

Cam

elin

a oi

lTh

e U

.S. D

epar

tmen

t of E

nerg

y ha

s ap

prov

ed a

USD

10

milli

on g

rant

to e

xplo

re w

ays

to ra

ise

the

oil c

onte

nt o

f cam

elin

a se

ed u

sing

gen

etic

seq

uenc

ing

and

mod

ifica

tion

tech

niqu

es. T

he

proj

ect w

ill be

led

by M

ichi

gan

Stat

e U

nive

rsity

. Hig

h oi

l-yie

ldin

g va

rietie

s ar

e ex

pect

ed to

at

tract

the

inte

rest

of U

.S. f

arm

ers,

as

cam

elin

a ca

n be

gro

wn

on a

gric

ultu

rally

mar

gina

l land

s,

requ

ires

limite

d fe

rtiliz

er a

nd w

ater

, and

offe

rs g

ood

resi

stan

ce to

pes

t and

dis

ease

. Cam

elin

a oi

l has

bee

n su

cces

sful

ly b

lend

ed in

to c

ivil

and

milit

ary

avia

tion

fuel

. Fur

ther

mor

e, t

he o

il is

use

d as

a fe

ed in

gred

ient

in a

quac

ultu

re a

nd le

nds

itsel

f for

a v

arie

ty o

f pha

rmac

eutic

al,

cosm

etic

and

indu

stria

l use

s (s

ee a

lso M

PPU

Jun

e’17

).

12 Oilcrops complex: Policy changes and industry measures - Annual compendium 2017

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

54AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Sect

or d

evel

opm

ent

mea

sure

s

Vanu

atu,

Sam

oaM

arch

Coc

onut

pal

mTh

e Pa

cific

Com

mun

ity (S

PC) a

nd th

e Eu

rope

an U

nion

pla

n to

sup

port

the

coco

nut i

ndus

try in

Sa

moa

and

Vanu

atu

as p

art o

f a n

ew re

gion

al in

itiat

ive t

o im

prov

e the

bus

ines

s com

petit

iven

ess

of s

mal

l pro

duce

rs. T

he E

UR

3.5

milli

on (U

SD 3

.7 m

illion

) Coc

onut

Indu

stry

Dev

elop

men

t Pr

ojec

t (C

IDP)

is

expe

cted

to

impr

ove

the

livel

ihoo

d of

sm

allh

olde

r fa

rmer

s in

the

tw

o co

untri

es b

y su

ppor

ting

inno

vatio

n in

coc

onut

pro

duct

ion

and

stre

ngth

enin

g re

gion

al m

arke

t in

tegr

atio

n. In

the

Pac

ific

regi

on, t

he c

ocon

ut s

ecto

r su

ppor

ts r

ural

pop

ulat

ion

livel

ihoo

ds,

play

s a

cent

ral r

ole

in th

e di

ets

of p

eopl

e, a

nd c

ontri

bute

s to

exp

ort e

arni

ngs.

New

inte

rest

in

coco

nut p

rodu

cts

such

as

virg

in c

ocon

ut o

il, c

ocon

ut w

ater

, coc

onut

sap

and

tim

ber i

s sa

id

to o

ffer o

ppor

tuni

ties

for t

he in

dust

ry’s

grow

th.

55AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Sect

or d

evel

opm

ent

mea

sure

s

Vanu

atu

Augu

stC

ocon

utTh

e G

over

nmen

t of V

anua

tu p

ledg

ed to

sup

port

the

plan

ting

of 1

milli

on c

ocon

ut tr

ees

by

2026

. Rep

orte

dly,

apar

t fro

m g

row

ing

old,

exi

stin

g pa

lms

have

with

ered

bec

ause

of c

yclo

nes.

U

npro

duct

ive

trees

will

be fe

lled

and

used

as

timbe

r.

56AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Sect

or d

evel

opm

ent

mea

sure

s

Zam

bia

Sept

embe

rPa

lm o

il Ac

cord

ing

to p

ress

repo

rts, t

he Z

ambi

an G

over

nmen

t has

pro

vide

d eq

uity

fina

nce

to a

loca

l pa

lm o

il ve

ntur

e in

a b

id to

hel

p re

duce

the

coun

try’s

depe

nden

ce o

n im

ports

of c

rude

pal

m

oil a

nd c

ooki

ng o

ils. R

epor

tedl

y, th

e pu

blic

-priv

ate

partn

ersh

ip w

ill fo

cus

on th

e de

velo

pmen

t of

oil p

alm

pla

ntat

ions

, inc

ludi

ng o

ut-g

row

er s

chem

es fo

r loc

al fa

rmer

s an

d th

e es

tabl

ishm

ent

of a

pal

m o

il m

ill. B

y su

ppor

ting

the

prod

uctio

n an

d pr

oces

sing

of c

rude

pal

m o

il, th

e pr

ojec

t –

once

it re

ache

s fu

ll ca

paci

ty –

is e

xpec

ted

to h

elp

subs

titut

e 70

000

tonn

es o

f coo

king

oil

impo

rted

into

Zam

bia.

57AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Sect

or d

evel

opm

ent

mea

sure

s

Zim

babw

eJu

lySo

ybea

nAc

cord

ing

to m

edia

repo

rts, t

he G

over

nmen

t of Z

imba

bwe

is p

lann

ing

to la

unch

– w

ith su

ppor

t fro

m t

he p

rivat

e se

ctor

– a

loan

fac

ility

to s

uppo

rt th

e co

untry

’s oi

lsee

d fa

rmer

s in

a b

id

to s

timul

ate

dom

estic

pro

duct

ion,

esp

ecia

lly o

f soy

. Fun

ding

wou

ld b

e di

rect

ed p

rimar

ily to

irr

igat

ion

infra

stru

ctur

e an

d fa

rmer

pur

chas

es o

f see

ds, f

ertil

izers

and

pes

ticid

es. R

epor

tedl

y, th

e co

untry

’s oi

lsee

d pr

oduc

ers’

ass

ocia

tion

alre

ady

iden

tified

farm

ers

willi

ng to

sow

a to

tal o

f 60

000

hec

tare

s in

the

forth

com

ing

seas

on.

58AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Sect

or d

evel

opm

ent

mea

sure

s

Zim

babw

eAu

gust

Soyb

ean

For t

he 2

017/

18 s

easo

n, th

e G

over

nmen

t of Z

imba

bwe

fixed

the

pric

e fo

r soy

bean

s de

liver

ed

to th

e st

ate-

owne

d G

rain

Mar

ketin

g Bo

ard

at U

SD 6

10 p

er to

nne,

i.e.

22

perc

ent a

bove

the

prev

ailin

g pr

ice

of U

SD 5

00. T

he m

easu

re is

mea

nt to

stim

ulat

e do

mes

tic s

oybe

an p

rodu

ctio

n,

thus

hel

ping

to re

duce

the

coun

try’s

depe

nden

ce o

n im

porte

d ed

ible

oil.

59AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Pest

con

trol m

easu

res

& re

gula

tions

Braz

il, P

arag

uay,

Boliv

iaM

aySo

ybea

n ru

stSc

ient

ists

, in

dust

ry r

epre

sent

ativ

es a

nd g

over

nmen

t offi

cial

s fro

m B

razil

, Pa

ragu

ay a

nd

Boliv

ia s

et u

p a

wor

king

gro

up to

com

bat t

he s

prea

ding

of s

oybe

an ru

st (a

fung

al d

isea

se th

at

affec

ts s

oybe

ans

and

othe

r leg

umin

ous

crop

s) in

Sou

th A

mer

ica.

In B

razil

, one

of t

he m

ost

effec

tive

mea

sure

s to

com

bat t

he d

isea

se h

as b

een

the

enfo

rcem

ent o

f a s

oybe

an-fr

ee p

erio

d of

3–4

mon

ths

whe

n no

live

soy

bean

pla

nts

are

perm

itted

alo

ng fi

elds

or a

roun

d st

orag

e an

d tra

nspo

rt fa

cilit

ies,

to h

inde

r the

mov

emen

t of r

ust s

pore

s fro

m o

ne g

row

ing

seas

on to

the

next

(s

ee M

PPU

May

& A

ug.’1

5). T

he w

orki

ng g

roup

will

look

into

the

poss

ibilit

y of

impl

emen

ting

sim

ilar r

estri

ctio

ns in

Par

agua

y an

d Bo

livia

. Fur

ther

mor

e, c

oord

inat

ed e

fforts

are

env

isag

ed to

sl

ow d

own

the

dise

ase’

s in

crea

sing

resi

stan

ce to

com

mon

ly e

mpl

oyed

pes

ticid

es.

Oilcrops complex: Policy changes and industry measures - Annual compendium 2017 13

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

60AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Pest

con

trol m

easu

res

& re

gula

tions

Braz

ilJu

lySo

ybea

n ru

stTh

e Br

azilia

n st

ate

of M

ato

Gro

sso

du S

ul is

pre

parin

g to

join

the

sta

tes

of M

ato

Gro

sso,

G

oias

and

Par

ana

in im

posi

ng a

n an

nual

soy

bean

-free

per

iod

to h

elp

cont

rol t

he s

prea

d of

As

ian

soyb

ean

rust

from

one

gro

win

g se

ason

to th

e ne

xt. T

he m

easu

re w

ould

ban

the

so-

calle

d sa

frinh

a cr

op, i

.e. t

he p

ract

ice

of p

lant

ing

a se

cond

cro

p of

soy

bean

s in

the

sam

e fie

ld

durin

g th

e sa

me

grow

ing

seas

on. E

ven

thou

gh s

afrin

ha s

oybe

ans

only

acc

ount

for

a ve

ry

smal

l acr

eage

in M

ato

Gro

sso

du S

ul, s

cien

tists

con

firm

ed th

e cr

ucia

l im

porta

nce

of th

e ba

n in

thei

r effo

rts to

con

trol t

he d

isea

se. O

nce

the

mea

sure

will

beco

me

effec

tive

in th

e na

med

st

ate,

abo

ut tw

o th

irds

of B

razil

’s so

ybea

n ar

ea w

ill be

sub

ject

to s

afrin

ha re

stric

tions

. (Se

e al

so M

PPU

Jun

e’17

on

effor

ts to

intro

duce

sim

ilar r

estri

ctio

ns in

nei

ghbo

urin

g Pa

ragu

ay a

nd

Boliv

ia.)

61AG

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ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Pest

con

trol m

easu

res

& re

gula

tions

Braz

ilN

ovem

ber

Fung

icid

eA

fung

icid

e de

velo

ped

prim

arily

to c

omba

t Asi

an s

oy ru

st h

as re

ceiv

ed re

gula

tory

app

rova

l in

Bra

zil. C

omm

erci

aliza

tion

of th

e ne

w p

rodu

ct is

exp

ecte

d to

beg

in b

efor

e th

e st

art o

f the

20

18/1

9 cr

op.

62AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Pest

con

trol m

easu

res

& re

gula

tions

Can

ada

May

Her

bici

deC

anad

a’s

Food

Insp

ectio

n Ag

ency

(CFI

A) d

eter

min

ed th

at g

lyph

osat

e –

a he

rbic

ide

wid

ely

used

in th

e cu

ltiva

tion

of o

ilsee

ds, o

ther

ara

ble

crop

s an

d fru

its –

is n

eith

er g

enot

oxic

nor

likel

y to

pos

e a

hum

an c

ance

r ris

k an

d th

at d

ieta

ry e

xpos

ure

asso

ciat

ed w

ith u

se o

f the

her

bici

de

is u

nlik

ely

to p

ose

sign

ifica

nt r

isks

to

hum

an h

ealth

. The

age

ncy’s

dec

isio

n fo

llow

s si

mila

r ju

dgem

ents

in th

e Eu

rope

an U

nion

(see

MPP

U D

ec.’1

5 &

Apr.’

17) a

nd th

e U

nite

d St

ates

(see

M

PPU

Nov

.’16)

.

63AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Pest

con

trol m

easu

res

& re

gula

tions

Can

ada

Sept

embe

rIn

sect

icid

eC

iting

saf

ety

conc

erns

, Can

ada’

s he

alth

aut

horit

ies

prop

osed

a c

ompl

ete

phas

e-ou

t of

an

inse

ctic

ide

know

n by

the

com

mer

cial

nam

e ‘m

atad

or’.

The

pest

icid

e, w

hich

is w

idel

y us

ed

in r

apes

eed

culti

vatio

n, c

ontro

ls p

ests

suc

h as

flea

bee

tles,

cut

wor

ms,

ber

tha

arm

ywor

ms

and

diam

ondb

ack

mot

hs.

Farm

ers

have

bee

n in

vite

d to

sha

re t

heir

com

men

ts a

bout

the

en

visa

ged

mea

sure

with

Can

ada’

s Pe

st M

anag

emen

t Re

gula

tory

Age

ncy.

Acco

rdin

g to

in

dust

ry r

epre

sent

ativ

es, t

he p

ropo

sed

ban

wou

ld g

reat

ly h

arm

rap

esee

d gr

ower

s an

d th

e in

dust

ry a

s a

who

le. O

bser

vers

als

o po

inte

d ou

t tha

t Can

ada

ough

t to

alig

n its

regu

latio

ns

with

oth

er c

ount

ries

such

as

the

Uni

ted

Stat

es, d

ue to

the

larg

e am

ount

of r

apes

eeds

that

is

expo

rted.

64AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Pest

con

trol m

easu

res

& re

gula

tions

Euro

pean

Uni

onJa

nuar

yXy

lella

fast

idio

saTh

e Eu

rope

an C

omm

issi

on h

as la

unch

ed a

mul

tidis

cipl

inar

y re

sear

ch p

rogr

amm

e ai

med

at

impr

ovin

g th

e pr

even

tion,

ear

ly d

etec

tion

and

cont

rol o

f xyl

ella

fast

idio

sa, a

bac

teria

l dis

ease

re

spon

sibl

e fo

r the

qui

ck w

iltin

g an

d di

ebac

k sy

ndro

me

that

des

troye

d ol

ive

trees

in s

outh

ern

Italy

and

has

bee

n de

tect

ed in

nei

ghbo

urin

g co

untri

es (s

ee M

PPU

Nov

./Dec

.’16)

. The

four

-ye

ar p

roje

ct w

ill be

nefit

from

the

colla

bora

tion

of 2

9 re

sear

ch c

ente

rs lo

cate

d in

14

coun

tries

ar

ound

the

wor

ld.

The

prin

cipa

l ob

ject

ive

is t

o pr

even

t th

e sp

read

of

the

dise

ase

and

deve

lop

a co

mpr

ehen

sive

inte

grat

ed m

anag

emen

t stra

tegy

, so

as to

miti

gate

the

econ

omic

, en

viro

nmen

tal a

nd s

ocia

l asp

ects

of e

pide

mic

con

ditio

ns w

orld

wid

e. P

ropo

sed

actio

ns w

ill be

com

plem

enta

ry t

o ot

her

on-g

oing

effo

rts.

Repo

rtedl

y, th

e xy

lella

fas

tidio

sa p

atho

gen

orig

inat

ed in

Bra

zil a

nd is

wid

ely

dist

ribut

ed in

the

Amer

ican

con

tinen

t, fro

m w

here

it tr

avel

led

to th

e O

ld W

orld

via

infe

cted

pla

nt m

ater

ial.

14 Oilcrops complex: Policy changes and industry measures - Annual compendium 2017

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

65AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Pest

con

trol m

easu

res

& re

gula

tions

Euro

pean

Uni

onM

arch

Her

bici

deTh

e Eu

rope

an C

hem

ical

Age

ncy

(EC

HA)

rec

kons

tha

t th

ere

are

no g

roun

ds t

o cl

assi

fy

glyp

hosa

te (a

her

bici

des

used

ext

ensi

vely

on

oilc

rops

and

gra

ins

wor

ldw

ide)

as

a ca

rcin

ogen

, as

a m

utag

en o

r as

tox

ic fo

r re

prod

uctio

n. T

he a

genc

y in

form

ed t

hat

its a

sses

smen

t w

as

base

d on

ava

ilabl

e sc

ient

ific

evid

ence

and

pre

cede

d by

clo

se c

onsu

ltatio

ns w

ith a

ll re

leva

nt

stak

ehol

ders

. EC

HA’

s op

inio

n ha

d be

en r

eque

sted

by

the

Euro

pean

Com

mis

sion

whe

n it

rene

wed

the

EU

lice

nse

for

glyp

hosa

te la

st y

ear

(see

MPP

U J

uly’

16).

The

Com

mis

sion

is

expe

cted

to ta

ke in

to a

ccou

nt th

e ag

ency

’s op

inio

n w

hen

it de

cide

s –

late

r thi

s ye

ar –

whe

ther

to

rene

w th

e lic

ense

furth

er. E

CH

A’s

findi

ngs

tally

with

an

earli

er o

pini

on p

ublis

hed

by th

e Eu

rope

an F

ood

Safe

ty A

utho

rity,

but c

ontra

dict

a re

port

issu

ed b

y th

e W

HO

’s In

tern

atio

nal

Agen

cy fo

r Res

earc

h on

Can

cer (

see

MPP

U A

pr. &

Dec

.’15)

. Fur

ther

mor

e, in

May

201

6, a

join

t FA

O/W

HO

mee

ting

on p

estic

ide

resi

dues

con

clud

ed t

hat

glyp

hosa

te is

unl

ikel

y to

pos

e a

carc

inog

enic

risk

to h

uman

s fro

m e

xpos

ure

thro

ugh

the

diet

. A n

umbe

r of c

ivil s

ocie

ty g

roup

s qu

estio

ned

ECH

A’s

asse

ssm

ent.

Acco

rdin

g to

Gre

enpe

ace,

EC

HA

has

not t

aken

into

acc

ount

sc

ient

ific

evid

ence

of

canc

er in

labo

rato

ry a

nim

als,

ove

rlook

ed t

he v

iew

s of

inde

pend

ent

scie

ntis

ts,

and

relie

d on

unp

ublis

hed

indu

stry

stu

dies

. C

once

rns

wer

e al

so r

aise

d ab

out

poss

ible

con

flict

s of

inte

rest

at E

CH

A.

66AG

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L SU

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RT P

OLI

CIE

S –

Pest

con

trol m

easu

res

& re

gula

tions

Euro

pean

Uni

onM

ayH

erbi

cide

Base

d on

the

late

st s

tate

of s

cien

tific

rese

arch

and

taki

ng in

to a

ccou

nt th

e fin

ding

s of

a s

tudy

re

cent

ly c

ondu

cted

by

the

Euro

pean

Che

mic

al A

genc

y (s

ee M

PPU

Apr

.’17)

, the

Eur

opea

n C

omm

issi

on d

ecid

ed t

o st

art

cons

ulta

tions

with

Mem

ber

Stat

es a

bout

a p

ossi

ble

10-y

ear

rene

wal

of t

he a

ppro

val o

f gly

phos

ate

– on

e of

the

wor

ld’s

mos

t wid

ely

used

her

bici

des.

The

18

-mon

th a

ppro

val g

rant

ed la

st J

uly

is d

ue to

exp

ire in

Dec

embe

r 201

7.

67AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Pest

con

trol m

easu

res

& re

gula

tions

Euro

pean

Uni

onM

ayIn

sect

icid

eTh

e Eu

rope

an C

omm

issi

on is

con

side

ring

to c

onve

rt th

e EU

’s ex

istin

g te

mpo

rary

mor

ator

ium

on

neo

nico

tinoi

d-ba

sed

inse

ctic

ides

int

o a

perm

anen

t ba

n. T

he a

llege

dly

bee-

harm

ing

pest

icid

es a

re w

idel

y us

ed in

the

culti

vatio

n of

rape

seed

, sug

ar b

eet a

nd o

ther

cro

ps. I

n re

cent

m

onth

s, fa

rmer

s’ re

pres

enta

tives

and

indu

stry

gro

ups

disp

uted

the

resu

lts o

f stu

dies

link

ing

the

inse

ctic

ides

to

bee

decl

ines

. Th

ey a

lso

clai

med

tha

t pr

oduc

ers

rely

on

neon

icot

inoi

d pr

oduc

ts t

o ki

ll di

seas

e-sp

read

ing

aphi

ds t

hat

are

resi

stan

t to

oth

er p

estic

ides

(se

e al

so

MPP

U F

eb.’1

7). E

xper

ts a

lso

poin

ted

out t

hat t

he p

ropo

sed

ban

coul

d le

ad to

oth

er ty

pes

of

pest

icid

es b

eing

ove

ruse

d, p

oten

tially

allo

win

g pe

sts

to d

evel

op re

sist

ance

to th

em.

68AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Pest

con

trol m

easu

res

& re

gula

tions

Euro

pean

Uni

onSe

ptem

ber

Her

bici

deTh

e Eu

rope

an C

omm

issi

on in

form

ed th

at th

e M

embe

r Sta

tes

vote

on

whe

ther

or n

ot to

ext

end

the

licen

se fo

r gly

phos

ate-

base

d he

rbic

ides

has

bee

n po

stpo

ned

to la

ter t

his

year

, add

ing

that

a

qual

ified

maj

ority

will

be n

eede

d fo

r the

pro

pose

d 10

-yea

r ren

ewal

to g

o ah

ead

(see

also

M

PPU

Apr

. & J

une

’17)

. The

18-

mon

th a

ppro

val g

rant

ed in

201

6 is

due

to e

xpire

in D

ecem

ber

2017

. The

Com

mis

sion

’s pr

opos

al fo

r a 1

0-ye

ar-e

xten

sion

(ins

tead

of t

he c

usto

mar

y 15

yea

rs)

incl

udes

a n

umbe

r of

spe

cific

pro

visi

ons

that

Mem

ber

Stat

es w

ould

nee

d to

fol

low

whe

n co

nsid

erin

g ap

plic

atio

ns f

or g

lyph

osat

e-ba

sed

prod

ucts

. M

eanw

hile

, on

e M

embe

r St

ate

prop

osed

to c

onsi

der p

hasi

ng o

ut g

lyph

osat

e ov

er a

five

- or s

even

-yea

r per

iod.

In g

ener

al, t

he

deba

te a

bout

hum

an h

ealth

risk

s as

soci

ated

with

the

chem

ical

’s us

e re

mai

ns c

ontro

vers

ial,

in

both

Eur

ope

and

else

whe

re. I

n C

anad

a an

d th

e U

nite

d St

ates

, rec

ent r

evie

ws

cond

ucte

d by

re

gula

tory

aut

horit

ies

clai

m th

at s

uch

risks

are

not

sig

nific

ant (

see

MPP

U N

ov.’1

6 &

June

’17)

. At

the

inte

rnat

iona

l lev

el, t

here

is a

lso

the

need

to a

lign

regu

latio

ns b

etw

een

trade

par

tner

s in

or

der t

o pr

even

t div

ergi

ng ru

les

from

cau

sing

trad

e di

srup

tions

.

Oilcrops complex: Policy changes and industry measures - Annual compendium 2017 15

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

69AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Pest

con

trol m

easu

res

& re

gula

tions

Euro

pean

Uni

onN

ovem

ber

Her

bici

deAf

ter a

leng

thy

deba

te o

ver p

oten

tial c

ance

r-cau

sing

risk

s of

gly

phos

ate,

the

Euro

pean

Uni

on

exte

nded

its

auth

oriza

tion

for t

he h

erbi

cide

for a

n ab

brev

iate

d pe

riod

of fi

ve y

ears

(see

also

M

PPU

Oct

.’17)

. Non

-rene

wal

of t

he li

cens

e, w

hich

was

sch

edul

ed to

exp

ire o

n 15

Dec

embe

r 20

17, c

ould

hav

e le

d to

dis

rupt

ions

in g

loba

l gra

in tr

ade.

Fra

nce,

whi

ch v

oted

aga

inst

the

rene

wal

, ann

ounc

ed th

at it

wou

ld d

raw

up

a pl

an fo

r pha

sing

out

the

herb

icid

e’s

use

on it

s te

rrito

ry o

ver t

he n

ext t

hree

yea

rs.

70AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Pest

con

trol m

easu

res

& re

gula

tions

Euro

pean

Uni

onDe

cem

ber

Xyle

lla fa

stid

iosa

Ten

EU m

embe

r cou

ntrie

s ag

reed

on

a ro

ad m

ap o

utlin

ing

next

ste

ps to

com

bat t

he b

acte

rial

dise

ase

xyle

lla fa

stid

iosa

that

was

firs

t det

ecte

d on

oliv

e tre

es in

Ital

y in

201

3 an

d is

now

pr

esen

t in

four

mem

ber s

tate

s, th

reat

enin

g a

rang

e of

cro

ps (s

ee a

lso M

PPU

Feb

.’17)

. The

Eu

rope

an F

ood

Safe

ty A

utho

rity

agre

ed to

upd

ate

its 2

015

risk

asse

ssm

ent o

f the

dis

ease

, an

d th

e Eu

rope

an C

omm

issi

on o

ffere

d to

mak

e av

aila

ble

EUR

10 m

illion

(USD

12.

1 m

illion

) to

supp

ort r

esea

rch,

impr

ove

prev

entio

n m

easu

res

and

com

bat t

he p

est.

Con

cern

ed c

ount

ries

high

light

ed th

e ne

ed to

i) re

stric

t the

mov

emen

t of r

isky

mat

eria

l with

in th

e EU

, ii)

enha

nce

dete

ctio

n an

d su

rvei

llanc

e an

d m

aint

ain

an u

pdat

ed li

st o

f lo

catio

ns w

here

the

dis

ease

is

pres

ent,

and

iii) c

onsi

der c

onta

inm

ent s

trate

gies

whe

re e

radi

catio

n is

not

pos

sibl

e. C

urre

ntly,

no

tre

atm

ent

exis

ts f

or t

he in

sect

-tran

smitt

ed p

est.

The

Euro

pean

Uni

on’s

past

foc

us o

n cu

lling

infe

cted

tree

s in

Ital

y’s A

pulia

regi

on m

et w

ith re

sist

ance

by

loca

l gro

wer

s (s

ee M

PPU

Ju

ly’16

).

71AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Pest

con

trol m

easu

res

& re

gula

tions

Uni

ted

Stat

esM

ayPe

stic

ide

Acco

rdin

g to

see

d co

mpa

ny M

onsa

nto,

the

US

Envi

ronm

enta

l Pro

tect

ion

Agen

cy (E

PA) is

sued

re

gist

ratio

n fo

r tio

xaza

fen,

a n

emat

icid

e sa

id t

o pr

ovid

e br

oad-

spec

trum

con

trol

of p

lant

pa

rasi

tic n

emat

odes

in m

aize

, soy

bean

s an

d co

tton.

Rep

orte

dly,

EPA’

s re

gist

ratio

n w

ill en

able

U

S fa

rmer

s to

use

the

pest

icid

e in

201

8, p

endi

ng s

tate

app

rova

ls.

72AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Pest

con

trol m

easu

res

& re

gula

tions

Uni

ted

Stat

esSe

ptem

ber

Her

bici

deAl

lege

dly,

in th

e U

nite

d St

ates

, mor

e th

an o

ne m

illion

hec

tare

s of

soy

bean

s an

d ot

her c

rops

vu

lner

able

to th

e he

rbic

ide

dica

mba

(i.e

. var

ietie

s th

at w

ere

not e

ngin

eere

d to

resi

st d

icam

ba)

have

bee

n da

mag

ed th

is y

ear a

s a

resu

lt of

spr

ayin

gs o

n ne

ighb

ourin

g fie

lds.

Exp

erts

hav

e lin

ked

the

dam

age

to th

e he

rbic

ide’

s te

nden

cy to

vap

orize

and

drif

t acr

oss

field

s, tr

igge

ring

tem

pora

ry b

ans

of th

e co

ntro

vers

ial h

erbi

cide

in A

rkan

sas

and

Mis

sour

i. N

atio

n-w

ide

use

of

the

chem

ical

had

bee

n ap

prov

ed in

Nov

embe

r las

t yea

r by

the

U.S

. Env

ironm

enta

l Pro

tect

ion

Agen

cy (E

PA) –

for a

lim

ited

perio

d of

two

year

s an

d pr

ovid

ed th

at s

peci

al s

afet

y m

easu

res

wer

e ap

plie

d (s

ee M

PPU

Dec

.’16)

. Now

, to

addr

ess

the

prob

lem

s en

coun

tere

d an

d en

sure

vu

lner

able

pla

nts

are

adeq

uate

ly p

rote

cted

, EPA

is e

valu

atin

g th

e fo

llow

ing

rem

edia

l act

ions

: (i)

intro

duci

ng ti

ghte

r res

trict

ions

on

whe

n an

d ho

w to

spr

ay d

icam

ba; (

ii) re

quiri

ng e

nhan

ced

train

ing

for

user

s of

the

herb

icid

e; a

nd (i

ii) re

clas

sify

ing

the

prod

uct t

o pr

even

t the

gen

eral

pu

blic

from

buy

ing

it. If

impl

emen

ted,

suc

h re

stric

tions

cou

ld a

ffect

farm

ers’

see

d pu

rcha

ses:

so

ybea

n gr

ower

s m

ight

sta

y aw

ay fr

om b

uyin

g di

cam

ba-re

sist

ant v

arie

ties

– w

hich

, thi

s ye

ar,

acco

unte

d fo

r alm

ost o

ne-fo

urth

of t

he U

nite

d St

ates

’ tot

al s

oybe

an a

rea.

73AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Pest

con

trol m

easu

res

& re

gula

tions

Uni

ted

Stat

esN

ovem

ber

Her

bici

deFo

llow

ing

repo

rts o

f sig

nific

ant c

rop

dam

age

from

her

bici

de d

rift i

n th

e U

nite

d St

ates

’ far

m

belt

and

Sout

heas

t (se

e M

PPU

Oct

.’17)

, the

U.S

. Env

ironm

enta

l Pro

tect

ion

Agen

cy (E

PA) h

as

reac

hed

an a

gree

men

t with

the

man

ufac

ture

rs o

f her

bici

de d

icam

ba o

n m

easu

res

to p

rote

ct

neig

hbou

ring

crop

s fro

m t

he c

hem

ical

’s us

e on

GM

soy

bean

and

cot

ton

field

s. D

icam

ba

prod

ucer

s ag

reed

to

labe

l cha

nges

tha

t im

pose

add

ition

al r

equi

rem

ents

for

use

rs o

f th

e he

rbic

ide.

EPA

will

mon

itor t

he s

ucce

ss o

f the

se c

hang

es b

efor

e de

cidi

ng w

heth

er to

allo

w

the

herb

icid

e’s

use

beyo

nd th

e 20

18 g

row

ing

seas

on.

16 Oilcrops complex: Policy changes and industry measures - Annual compendium 2017

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

74AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Pest

con

trol m

easu

res

& re

gula

tions

Uni

ted

Stat

esDe

cem

ber

Her

bici

deSi

nce

fede

ral a

utho

ritie

s re

stric

ted

the

use

of th

e he

rbic

ide

dica

mba

late

last

yea

r (se

e M

PPU

O

ct.

& De

c.’1

7),

addi

tiona

l, st

ate-

spec

ific

rest

rictio

ns h

ave

been

im

pose

d in

Ark

ansa

s,

Min

neso

ta, M

isso

uri a

nd N

orth

Dak

ota.

The

mea

sure

s ar

e m

eant

to re

duce

inst

ance

s of

the

herb

icid

e dr

iftin

g an

d da

mag

ing

neig

hbou

ring

field

s. A

gri-b

usin

ess

com

pany

Mon

sant

o,

whi

ch m

arke

ts d

icam

ba-b

ased

her

bici

des

alon

g w

ith g

enet

ical

ly e

ngin

eere

d di

cam

ba-to

lera

nt

varie

ties

of s

oybe

ans

and

cotto

n to

hel

p fa

rmer

s co

ntro

l wee

ds th

at d

evel

oped

resi

stan

ce to

ot

her h

erbi

cide

s, m

aint

ains

that

the

chem

ical

s ar

e sa

fe w

hen

prop

erly

app

lied.

Rep

orte

dly,

Mon

sant

o de

cide

d to

offe

r US

soy

farm

ers

a ca

sh in

cent

ive

if th

ey a

gree

to u

se th

e he

rbic

ide

on th

e co

mpa

ny’s

GM

soy

bean

s. T

he re

cent

ly im

pose

d re

gula

tory

rest

rictio

ns a

re e

xpec

ted

to d

rive

up th

e co

sts

of u

sing

dic

amba

, whi

ch M

onsa

nto

is a

imin

g to

cou

nter

with

its

cash

-ba

ck o

ffer.

75AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Pest

con

trol m

easu

res

& re

gula

tions

Uni

ted

Stat

esDe

cem

ber

Her

bici

deA

draf

t hum

an ri

sk a

sses

smen

t rel

ease

d by

the

U.S

. Env

ironm

enta

l Pro

tect

ion

Agen

cy (E

PA)

conc

lude

s th

at g

lyph

osat

e –

a w

idel

y us

ed t

houg

h co

ntro

vers

ial h

erbi

cide

– is

not

like

ly

to b

e ca

rcin

ogen

ic to

hum

ans.

The

age

ncy

adde

d th

at n

o ot

her

mea

ning

ful r

isk

to h

uman

he

alth

was

foun

d w

hen

the

prod

uct i

s us

ed a

ccor

ding

to la

bel i

nstru

ctio

ns. E

PA h

as c

alle

d fo

r pub

lic c

omm

ents

on

its a

sses

smen

t. Th

e ag

ency

’s fin

al d

ecis

ion,

whi

ch is

sch

edul

ed fo

r 20

19, w

ill ou

tline

any

pro

pose

d ris

k m

itiga

tion

mea

sure

s, s

houl

d th

ese

be d

eem

ed n

eces

sary

. M

eanw

hile

, in

the

stat

e of

Cal

iforn

ia, p

rodu

cts

that

may

con

tain

gly

phos

ate

are

requ

ired

to

carry

war

ning

labe

ls s

tatin

g th

e ch

emic

al is

kno

wn

to th

e st

ate

to c

ause

can

cer –

a d

ecis

ion

that

has

bee

n ch

alle

nged

by

US

farm

gro

ups

and

prod

ucer

s of

the

chem

ical

.

76AG

RIC

ULT

URA

L SU

PPO

RT P

OLI

CIE

S –

Relie

f mea

sure

s

Chi

naM

ayAl

l cro

psTh

e G

over

nmen

t of

Chi

na p

lans

to

intro

duce

new

agr

icul

tura

l in

sura

nce

prog

ram

mes

in

sele

cted

cou

ntie

s to

com

pens

ate

farm

ers

for c

rop

loss

es re

sulti

ng fr

om n

atur

al d

isas

ters

. The

ne

w in

sura

nce

pack

ages

wou

ld b

e off

ered

to fa

mily

farm

s, la

rge-

scal

e gr

ower

s an

d fa

rmer

s’

coop

erat

ives

.

77BI

OFU

EL P

OLI

CIE

SAr

gent

ina

June

Biod

iese

lTh

e Ar

gent

ine

Gov

ernm

ent s

uspe

nded

the

coun

try’s

expo

rt du

ty o

n bi

odie

sel f

or th

e m

onth

s of

Jun

e an

d Ju

ly. In

Apr

il an

d M

ay, t

he v

aria

ble

duty

, whi

ch is

revi

ewed

on

a m

onth

ly b

asis

, st

ood

at, r

espe

ctiv

ely

7.05

per

cent

and

0.1

3 pe

rcen

t. Th

e du

ty’s

susp

ensi

on is

exp

ecte

d to

im

prov

e th

e co

mpe

titiv

enes

s of

the

Arge

ntin

e bi

odie

sel o

n th

e w

orld

mar

ket,

at a

tim

e w

hen

the

coun

try’s

expo

rt pr

ospe

cts

are

thre

aten

ed b

y re

duce

d de

man

d fro

m k

ey b

uyer

s, n

otab

ly

the

Uni

ted

Stat

es (s

ee b

elow

and

MPP

U J

une’

17).

78BI

OFU

EL P

OLI

CIE

SAr

gent

ina

Dece

mbe

rBi

odie

sel

The

Gov

ernm

ent

anno

unce

d a

rise

in t

he c

ount

ry’s

varia

ble

expo

rt ta

x on

bio

dies

el f

rom

ze

ro p

erce

nt a

pplie

d in

Dec

embe

r 201

7 to

a fi

xed

rate

of 8

per

cent

, effe

ctiv

e 1

Janu

ary

2018

. C

onsi

derin

g th

at, a

t the

sam

e tim

e, th

e Ja

nuar

y ex

port

tariff

rate

for s

oy o

il is

goi

ng to

be

low

ered

to 2

6.5

perc

ent (

from

27

perc

ent a

pplie

d in

Dec

embe

r), th

e ta

x di

ffere

nce

betw

een

the

two

prod

ucts

is s

et to

dro

p fro

m 2

7 pe

rcen

t to

18.5

per

cent

. Rep

orte

dly,

the

redu

ced

tax

diffe

rent

ial c

ould

resu

lt in

neg

otia

tions

with

the

Uni

ted

Stat

es re

gard

ing

that

cou

ntry

’s re

cent

ly

impo

sed

anti-

dum

ping

and

cou

nter

vailin

g du

ties

on i

mpo

rts o

f Ar

gent

ine

biod

iese

l (N

.B.

The

Uni

ted

Stat

es li

kene

d Ar

gent

ina’

s ta

x di

ffere

ntia

l to

a su

bsid

y fo

r the

cou

ntry

’s bi

odie

sel

prod

ucer

s –

see

MPP

U S

ep.’1

7). M

arke

t obs

erve

rs p

oint

ed o

ut th

at th

e hi

gher

taxa

tion

of

biod

iese

l exp

orts

cou

ld n

egat

ivel

y aff

ect A

rgen

tina’

s sa

les

of th

e fu

el to

the

Euro

pean

Uni

on.

Oilcrops complex: Policy changes and industry measures - Annual compendium 2017 17

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

79BI

OFU

EL P

OLI

CIE

SBr

azil

Sept

embe

rBi

odie

sel

Acco

rdin

g to

gov

ernm

ent

sour

ces,

man

dato

ry b

lend

ing

of b

iodi

esel

into

reg

ular

tra

nspo

rt di

esel

will

be r

aise

d fro

m 8

per

cent

to

10 p

erce

nt t

owar

ds t

he e

nd o

f th

e cu

rrent

yea

r –

i.e.

mor

e th

an o

ne y

ear

earli

er t

han

orig

inal

ly p

lann

ed (

see

MPP

U A

pr.’1

6).

Offi

cial

s fro

m

Braz

il’s M

ines

and

Ene

rgy

Min

istry

exp

ect

the

Nat

iona

l Ene

rgy

Polic

y C

ounc

il to

app

rove

th

e sh

ift t

o th

e hi

gher

ble

ndin

g m

anda

te b

y De

cem

ber

2017

, in

line

with

effo

rts t

o lif

t th

e co

untry

’s bi

ofue

l out

put,

redu

ce im

ports

of

min

eral

oil

prod

ucts

, an

d m

eet

natio

nal G

HG

re

duct

ion

com

mitm

ents

. Mor

eove

r, th

e G

over

nmen

t is

expe

cted

to a

nnou

nce

deta

ils a

bout

‘R

enov

aBio

’, a

pack

age

of in

cent

ives

and

regu

lato

ry m

easu

res

aim

ed a

t (i)

rais

ing

dom

estic

bi

ofue

l pro

duct

ion

and

cons

umpt

ion,

(ii)

attra

ctin

g in

vest

men

ts, a

nd (i

ii) fo

ster

ing

com

petit

ion

with

in th

e se

ctor

.

80BI

OFU

EL P

OLI

CIE

SBr

azil

Nov

embe

rBi

odie

sel

Acco

rdin

g to

indu

stry

offi

cial

s, B

razil

’s N

atio

nal E

nerg

y Po

licy

Cou

ncil

(CN

PE) r

ecom

men

ded

rais

ing

the

coun

try’s

man

dato

ry b

iofu

el b

lend

ing

rate

to

10 p

erce

nt in

Mar

ch 2

018

– tw

o po

ints

abo

ve t

he c

urre

nt 8

per

cent

rat

e. T

he G

over

nmen

t’s o

rigin

al p

lan

only

env

isag

ed a

on

e-po

int i

ncre

ase

(to 9

per

cent

) in

Mar

ch 2

018,

follo

wed

by

a ra

te o

f 10

perc

ent i

n 20

19 (s

ee

MPP

U A

pr.’1

6 &

Oct

.’17)

. CN

PE’s

prop

osal

, whi

ch w

ould

rais

e ne

xt y

ear’s

dom

estic

bio

dies

el

prod

uctio

n by

app

roxi

mat

ely

1 m

illion

tonn

es, i

s no

w b

eing

revi

ewed

by

the

Gov

ernm

ent.

81BI

OFU

EL P

OLI

CIE

SBr

azil

Nov

embe

rBi

odie

sel

Braz

il Lo

wer

Hou

se p

asse

d ‘R

enov

aBio

’, a

prop

osed

pac

kage

of i

ncen

tives

and

regu

lato

ry

mea

sure

s ai

med

at i

) stim

ulat

ing

dom

estic

bio

fuel

pro

duct

ion

and

cons

umpt

ion,

ii) a

ttrac

ting

inve

stm

ents

, and

iii) f

oste

ring

com

petit

ion

with

in th

e se

ctor

. The

bill

has

yet t

o be

app

rove

d by

th

e Se

nate

bef

ore

it ca

n be

sig

ned

into

law

by

the

coun

try’s

pres

iden

t. Th

roug

h th

e pr

opos

ed

bill,

fuel

dis

tribu

tors

wou

ld h

elp

mee

ting

Braz

il’s c

arbo

n di

oxid

e em

issi

ons

targ

ets

by s

ellin

g in

crea

sed

volu

mes

of e

than

ol a

nd b

iodi

esel

.

82BI

OFU

EL P

OLI

CIE

SBr

azil

Dece

mbe

rBi

odie

sel

Braz

il’s U

pper

Hou

se p

asse

d ‘R

enov

aBio

’, th

e po

licy

pack

age

on re

new

able

fuel

s en

dors

ed

by th

e Lo

wer

Hou

se la

st N

ovem

ber (

see

MPP

U D

ec.’1

7). M

arke

ts e

xpec

t the

bill

to b

e si

gned

in

to la

w b

y th

e Pr

esid

ent i

n th

e ne

ar fu

ture

. Nex

t ste

ps w

ill in

clud

e th

e fo

rmul

atio

n of

: exa

ct

man

date

s fo

r dom

estic

bio

fuel

con

sum

ptio

n be

twee

n 20

20 (t

he n

ew p

rogr

amm

e’s

expe

cted

ye

ar o

f im

plem

enta

tion)

and

203

0; d

etai

led

fuel

sta

ndar

ds a

nd c

ertifi

catio

n ru

les;

and

car

bon

cred

its a

nd fi

scal

/fina

ncia

l/cre

dit i

ncen

tives

for

biof

uel p

rodu

cers

. In

addi

tion

to b

ioet

hano

l an

d bi

odie

sel,

the

prog

ram

me

will

also

pro

mot

e th

e co

mm

erci

aliza

tion

of b

ioga

s, b

io-m

etha

ne

and

avia

tion

biof

uel.

83BI

OFU

EL P

OLI

CIE

SC

anad

aDe

cem

ber

Biod

iese

lTh

e G

over

nmen

t of C

anad

a pu

blis

hed

a re

gula

tory

fram

ewor

k ou

tlini

ng th

e sc

ope

and

key

elem

ents

of a

nat

iona

l sta

ndar

d fo

r cle

an fu

els.

Con

sulta

tions

with

all i

nter

este

d pa

rties

to w

ork

thro

ugh

the

stan

dard

’s te

chni

cal d

etai

ls w

ill fo

llow.

The

new

sta

ndar

d w

ill fo

cus

on re

duci

ng

carb

on in

tens

ity a

cros

s th

e lif

ecyc

le o

f fue

ls. C

hang

es in

cro

p de

man

d an

d la

nd m

anag

emen

t pr

actic

es th

at a

rise

from

cle

an fu

el u

tiliza

tion

and

impa

ct o

n G

HG

em

issi

ons

will

be ta

ken

into

ac

coun

t. Th

e ex

istin

g fe

dera

l man

date

on

blen

ding

2 p

erce

nt b

iodi

esel

and

5 p

erce

nt e

than

ol

into

the

coun

try’s

trans

porta

tion

fuel

s w

ill be

mai

ntai

ned

in th

e sh

ort t

erm

. How

ever

, in

the

long

er te

rm, t

hese

vol

umet

ric re

quire

men

ts w

ill be

repl

aced

with

fuel

-spe

cific

car

bon

inte

nsity

re

quire

men

ts th

at a

re e

xpec

ted

to b

ecom

e m

ore

strin

gent

ove

r tim

e.

18 Oilcrops complex: Policy changes and industry measures - Annual compendium 2017

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

84BI

OFU

EL P

OLI

CIE

SEu

rope

an U

nion

Dece

mbe

rBi

odie

sel

The

Euro

pean

Cou

ncil

outli

ned

its p

ositi

on r

egar

ding

the

ref

orm

of

the

bloc

’s Re

new

able

En

ergy

Dire

ctiv

e fo

r the

per

iod

2021

–203

0. T

he C

ounc

il pro

pose

d to

reta

in th

e ex

istin

g ta

rget

of

27

perc

ent r

enew

able

ene

rgy

in to

tal e

nerg

y co

nsum

ptio

n in

203

0. In

the

trans

port

sect

or,

the

14 p

erce

nt t

arge

t fo

r ea

ch m

embe

r st

ate

wou

ld b

e m

aint

aine

d fo

r 20

30,

with

a s

ub-

targ

et o

f 3 p

erce

nt fo

r ‘ad

vanc

ed b

iofu

els’

. Als

o th

e ex

istin

g 7-

perc

ent c

ap fo

r firs

t-gen

erat

ion

biof

uels

(suc

h as

veg

etab

le o

il-ba

sed

biod

iese

l) w

ould

be

mai

ntai

ned.

If a

mem

ber s

tate

set

s a

low

er c

ap, i

t wou

ld h

ave

the

optio

n of

low

erin

g its

ove

rall t

arge

t for

rene

wab

les

in tr

ansp

ort.

By c

ompa

rison

, the

pro

posa

ls ta

bled

by

the

Euro

pean

Com

mis

sion

env

isag

ed a

pro

gres

sive

re

duct

ion

of fo

od-b

ased

fuel

s an

d th

eir

repl

acem

ent

with

sec

ond-

gene

ratio

n bi

ofue

ls (s

ee

MPP

U D

ec.’1

6). A

lso

the

Euro

pean

Par

liam

ent c

alle

d fo

r mor

e am

bitio

us o

vera

ll ta

rget

s an

d re

com

men

ded

to d

istin

guis

h be

twee

n fir

st-g

ener

atio

n bi

ofue

ls p

rodu

ced

usin

g su

stai

nabl

e pr

actic

es a

nd th

ose

purp

orte

dly

prod

uced

in a

n un

sust

aina

ble

man

ner (

see

MPP

U J

une’

17).

85BI

OFU

EL P

OLI

CIE

SEu

rope

an U

nion

Dece

mbe

rBi

odie

sel

The

Euro

pean

Com

mis

sion

con

firm

ed th

at ra

pese

ed g

row

n in

Can

ada

and

Aust

ralia

wou

ld

rem

ain

elig

ible

for e

nter

ing

the

EU m

arke

t as

envi

ronm

enta

lly-fr

iend

ly fe

edst

ock

for b

iodi

esel

, as

the

crop

s ha

ve b

een

show

n to

mee

t the

blo

c’s

incr

easi

ngly

stri

ngen

t req

uire

men

ts (N

.B.

From

Jan

uary

201

8, a

ll bi

odie

sel f

eeds

tock

nee

d to

del

iver

GH

G li

fecy

cle

savi

ngs

of 5

0–60

per

cent

com

pare

d to

fos

sil f

uels

– u

p fro

m 3

5 pe

rcen

t in

201

7). F

or A

ustra

lia, t

he E

U

repr

esen

ts a

top

rape

seed

exp

ort m

arke

t, w

ith th

e bu

lk o

f del

iver

ies

abso

rbed

by

the

bloc

’s bi

odie

sel i

ndus

try.

86BI

OFU

EL P

OLI

CIE

SIn

done

sia

Mar

chBi

odie

sel

Acco

rdin

g to

indu

stry

sou

rces

, the

Gov

ernm

ent

of In

done

sia

is c

onsi

derin

g to

red

uce

the

amou

nt o

f sub

sidy

per

kilo

liter

it p

ays

to p

etro

l com

pani

es fo

r bl

endi

ng b

iodi

esel

so

as to

sp

read

the

tot

al s

ubsi

dy a

mou

nt a

cros

s a

larg

er v

olum

e. T

he m

ove

wou

ld a

llow

rai

sing

do

mes

tic b

iodi

esel

pro

duct

ion

– an

d he

nce

the

upta

ke o

f loc

al p

alm

oil,

the

prin

cipa

l bio

dies

el

feed

stoc

k –

with

out i

ncre

asin

g bu

dget

ary

outla

ys. A

llege

dly,

the

rece

nt fa

ll in

pal

m o

il pr

ices

w

ould

leav

e ro

om to

use

par

t of t

he s

ubsi

dy to

rais

e vo

lum

es. P

rivat

e so

urce

s po

inte

d ou

t tha

t th

e B2

0 bl

endi

ng m

anda

te (w

hich

requ

ires

dies

el to

con

tain

20

perc

ent b

iofu

el) i

ntro

duce

d la

st y

ear –

whi

ch o

nly

appl

ies

to (s

ubsi

dize

d) tr

ansp

orta

tion

dies

el –

mig

ht b

e ex

tend

ed to

no

n-su

bsid

ized

dies

el fu

el in

201

7, p

ossi

bly

boos

ting

dom

estic

bio

dies

el d

eman

d by

abo

ut

70 p

erce

nt.

87BI

OFU

EL P

OLI

CIE

SJa

mai

caJu

neBi

odie

sel

The

stat

e-ow

ned

Petro

leum

Cor

pora

tion

of Ja

mai

ca h

as d

evel

oped

die

sel c

onta

inin

g 5

perc

ent

of c

asto

r oil-

base

d m

ethy

lest

her a

nd is

test

ing

the

biod

iese

l on

mot

or v

ehic

les.

Rep

orte

dly,

the

Jam

aica

n G

over

nmen

t is

envi

sagi

ng th

e in

trodu

ctio

n of

tran

spor

t bio

dies

el, w

ith a

vie

w to

cu

t the

cou

ntry

’s en

ergy

impo

rt bi

ll an

d co

ntrib

ute

to th

e re

duct

ion

of G

HG

em

issi

ons.

88BI

OFU

EL P

OLI

CIE

SN

iger

iaM

arch

Biod

iese

lN

iger

ia’s

Fede

ral G

over

nmen

t inf

orm

ed th

at it

is w

orki

ng o

n a

‘Bio

fuel

Pol

icy

and

Ince

ntiv

es’

docu

men

t, w

hich

spe

lls o

ut p

rodu

ctio

n an

d pr

ice

targ

ets

and

defin

es a

regu

lato

ry fr

amew

ork

for

dom

estic

bio

fuel

s ut

ilizat

ion.

The

pol

icy’s

obj

ectiv

e w

ould

be

to r

educ

e th

e co

untry

’s de

pend

ence

on

foss

il fue

l and

impo

rted

petro

leum

pro

duct

s, w

hile

pro

mot

ing

clea

ner f

orm

s of

en

ergy

. Sup

port

mea

sure

s w

ould

com

pris

e du

ty a

nd ta

x br

eaks

as

wel

l as

the

esta

blis

hmen

t of

a B

iofu

els

Equi

ty In

vest

men

t Fu

nd (b

acke

d by

par

asta

tals

and

dev

elop

men

t ba

nks)

to

stim

ulat

e in

vest

men

t in

biof

uel p

rodu

ctio

n, in

clud

ing

culti

vatio

n of

bio

fuel

-cro

ps. F

or b

iodi

esel

, th

e sp

ecifi

catio

n en

dors

ed b

y st

akeh

olde

rs is

B20

, i.e

. a b

lend

of d

iese

l and

20

perc

ent b

iofu

el

prod

uced

from

jatro

pha

oil,

used

pal

m o

il an

d ot

her n

on-e

dibl

e oi

ls.

Oilcrops complex: Policy changes and industry measures - Annual compendium 2017 19

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

89BI

OFU

EL P

OLI

CIE

SRw

anda

Mar

chBi

odie

sel

Rwan

da’s

Rese

arch

and

Dev

elop

men

t Ag

ency

(N

IRDA

) in

form

ed t

hat

the

gove

rnm

ent

deci

ded

to a

band

on a

USD

35

milli

on b

iodi

esel

pro

ject

laun

ched

four

yea

rs a

go. R

epor

tedl

y, th

e go

vern

men

t rea

lized

that

the

pilo

t pro

ject

was

not

via

ble

due

to in

suffi

cien

t ava

ilabi

lity

of

feed

stoc

k an

d hi

gh c

osts

of p

rodu

ctio

n. T

he p

roje

ct fe

asib

ility

stud

y ha

d id

entifi

ed n

on-e

dibl

e ja

troph

a oi

l as

key

feed

stoc

k, b

ut e

vent

ually

the

plan

t was

dis

cove

red

to b

e un

suita

ble

for t

he

coun

try’s

clim

ate.

Con

cern

s ov

er u

sing

sca

rce

arab

le la

nd fo

r use

s ot

her t

han

food

pro

duct

ion

wer

e al

so c

ited.

90BI

OFU

EL P

OLI

CIE

STh

aila

ndM

ayBi

odie

sel

In T

haila

nd, t

he m

anda

tory

bio

dies

el b

lend

ing

rate

of 7

per

cent

has

bee

n re

intro

duce

d in

May

20

17. T

he ra

te h

ad b

een

tem

pora

rily

low

ered

to 5

and

3 p

erce

nt la

st y

ear f

ollo

win

g sh

orta

ges

in d

omes

tic p

alm

oil

supp

lies

and

cons

umer

pric

e hi

kes

(see

MPP

U S

ep.’1

6). B

y co

ntra

st,

in r

ecen

t m

onth

s, p

rodu

cer

pric

es d

ropp

ed s

harp

ly a

mid

ris

ing

palm

oil

outp

ut, t

rigge

ring

Gov

ernm

ent m

easu

res

to s

uppo

rt do

mes

tic p

alm

oil u

ptak

e (s

ee M

PPU

Jul

y’17

), in

clud

ing

the

rece

nt re

visi

on in

the

biod

iese

l ble

ndin

g ra

te.

91BI

OFU

EL P

OLI

CIE

SU

nite

d Ar

ab

Emira

tes

May

Use

d co

okin

g oi

l Ac

cord

ing

to t

he lo

cal p

ress

, th

e co

untry

cou

ld s

oon

star

t to

tur

n us

ed c

ooki

ng o

il in

to

biod

iese

l. Re

porte

dly,

the

UAE

Cen

tre f

or W

aste

Man

agem

ent

is c

onsi

derin

g to

pro

vide

pe

rmits

to c

ompa

nies

to p

rodu

ce b

iodi

esel

from

lefto

ver c

ooki

ng o

il, fa

t and

gre

ase

for u

se

in b

uses

and

lorri

es.

92BI

OFU

EL P

OLI

CIE

SU

nite

d Ar

ab

Emira

tes

Sept

embe

rBi

odie

sel

The

Emira

tes

Nat

iona

l Oil

Com

pany

(EN

OC

) an

noun

ced

the

laun

ch o

f a

biod

iese

l ble

nd

dest

ined

for

the

cou

ntry

’s co

mm

erci

al a

nd i

ndus

trial

seg

men

t. Th

e fu

el,

whi

ch c

onta

ins

5 pe

rcen

t bio

dies

el p

rodu

ced

from

veg

etab

le o

il, u

sed

cook

ing

oil o

r ani

mal

fat,

is e

xpec

ted

to h

elp

redu

ce th

e co

untry

’s G

HG

em

issi

ons.

The

mea

sure

is in

line

with

the

gove

rnm

ent’s

En

ergy

Pla

n le

adin

g up

to th

e ye

ar 2

050,

whi

ch c

alls

for a

n en

ergy

mix

com

bini

ng re

new

able

, nu

clea

r and

cle

an e

nerg

y so

urce

s. R

epor

tedl

y, th

e ne

w b

lend

is s

uita

ble

for u

se in

new

and

ex

istin

g tru

cks

as w

ell a

s he

avy

cons

truct

ion

equi

pmen

t, w

ithou

t nee

d to

upg

rade

eng

ines

an

d fu

el s

tora

ge fa

cilit

ies.

93BI

OFU

EL P

OLI

CIE

SU

nite

d Ki

ngdo

mSe

ptem

ber

Biod

iese

lTh

e U

.K.

Gov

ernm

ent

publ

ishe

d its

lon

g-te

rm s

trate

gy f

or i

ncre

asin

g th

e su

pply

and

su

stai

nabi

lity

of re

new

able

tran

spor

t fue

ls in

the

coun

try. T

he n

ew p

olic

y pa

ckag

e is

aim

ed a

t lo

wer

ing

the

GH

G in

tens

ity o

f tra

nspo

rt fu

els,

whi

le p

rovi

ding

a s

tabl

e po

licy

envi

ronm

ent f

or

inve

stm

ents

into

rene

wab

le lo

w c

arbo

n fu

els.

Fro

m A

pril

2018

, the

sha

re o

f ren

ewab

le fu

els

in to

tal f

uel c

onsu

mpt

ion

will

be li

fted

to 7

.25

perc

ent,

furth

er in

crea

sing

to 9

.75

perc

ent i

n 20

20 a

nd 1

2.4

perc

ent i

n 20

32. T

he c

ontri

butio

n cr

op-b

ased

bio

fuel

s ca

n m

ake

tow

ards

the

abov

e ob

ligat

ions

will

be lo

wer

ed to

4 p

erce

nt in

202

0, s

tead

ily d

eclin

ing

to 2

per

cent

in 2

032

– a

prov

isio

n th

at is

exp

ecte

d to

pla

ce a

sig

nific

ant d

eman

d on

was

te b

iofu

el fe

edst

ock,

in

parti

cula

r use

d co

okin

g oi

l. Fu

rther

mor

e, a

sub

-targ

et (a

s w

ell a

s sp

ecia

l fina

ncia

l inc

entiv

es)

will

be in

trodu

ced

for s

o-ca

lled

‘dev

elop

men

t fue

ls’,

i.e. h

igh-

blen

d fu

els

suita

ble

for m

eetin

g th

e lo

ng-te

rm g

oal o

f dec

arbo

nizin

g th

e he

avy

good

s ve

hicl

e an

d av

iatio

n se

ctor

s. In

dust

ry

repr

esen

tativ

es c

laim

ed th

at th

e ca

p on

cro

p-ba

sed

fuel

s w

as to

o st

ringe

nt a

nd u

nnec

essa

rily

limite

d th

e m

arke

t fo

r bi

ofue

ls w

ith p

rove

n G

HG

red

uctio

n po

tent

ial.

Con

cern

s w

ere

also

ex

pres

sed

that

the

new

pol

icy

redu

ces

the

U.K

.’s c

ompe

titiv

enes

s vi

s-à-

vis

othe

r EU

mem

ber

stat

es, w

here

hig

her c

aps

for c

rop-

base

d fu

els

will

be in

pla

ce (s

ee M

PPU

Dec

.’16)

.

20 Oilcrops complex: Policy changes and industry measures - Annual compendium 2017

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

94BI

OFU

EL P

OLI

CIE

SU

nite

d St

ates

Janu

ary

Cam

elin

a sa

tiva

Rene

win

g na

tiona

l eff

orts

to

prom

ote

rese

arch

on

bio-

base

d fu

els,

the

Uni

ted

Stat

es

Depa

rtmen

t of E

nerg

y ha

s al

loca

ted

fund

s to

a re

sear

ch p

roje

ct o

n ca

mel

ina

sativ

a, a

n ed

ible

oi

lcro

p ad

apte

d to

nor

ther

n cl

imat

es a

nd s

uita

ble

for c

ultiv

atio

n as

a ro

tatio

n cr

op in

dry

are

as

and

on th

in s

oils

. Rep

orte

dly,

rese

arch

effo

rts w

ill co

ncen

trate

on

way

s to

rais

e pr

oduc

tivity

in

cam

elin

a cu

ltiva

tion

and

to im

prov

e ca

mel

ina

oil q

ualit

y, us

ing

a co

mbi

natio

n of

trad

ition

al

bree

ding

met

hods

and

mol

ecul

ar g

enet

ics.

Chi

efly,

cam

elin

a w

ill be

stu

died

for i

ts p

oten

tial a

s bi

ofue

l fee

dsto

ck. I

n re

cent

yea

rs, n

umer

ous

test

s ha

ve b

een

cond

ucte

d in

the

Uni

ted

Stat

es

and

else

whe

re w

ith c

amel

ina-

base

d tra

nspo

rt an

d av

iatio

n fu

els,

and

cam

elin

a oi

l has

gai

ned

appr

oval

as

biof

uel f

eeds

tock

by

the

coun

try’s

Envi

ronm

enta

l Pro

tect

ion

Agen

cy (s

ee M

PPU

Ap

r.’13

, Feb

./Jun

e’16

).

95BI

OFU

EL P

OLI

CIE

SU

nite

d St

ates

May

Biod

iese

lTh

e Io

wa

Infra

stru

ctur

e Fu

nd B

ill, w

hich

pro

vide

s U

SD 3

milli

on in

fun

ding

for

the

sta

te’s

Rene

wab

le F

uels

Infra

stru

ctur

e pr

ogra

mm

e, h

as b

een

exte

nded

for a

n ad

ditio

nal y

ear u

ntil

30 J

une

2018

. Und

er th

e pr

ogra

mm

e pu

mp

oper

ator

s re

ceiv

e as

sist

ance

for t

he c

onve

rsio

n of

thei

r equ

ipm

ent t

o ra

ise

rene

wab

le fu

el s

ales

. Iow

a is

the

Uni

ted

Stat

es’ l

eadi

ng p

rodu

cer

of b

iodi

esel

.

96BI

OFU

EL P

OLI

CIE

SU

nite

d St

ates

May

Biod

iese

lLe

gisl

atio

n co

ncer

ning

the

rene

wal

of t

he U

SD 1

.00-

per-g

allo

n bi

odie

sel t

ax c

redi

t – w

hich

ex

pire

d on

31

Dece

mbe

r 201

6 –

has

been

intro

duce

d in

the

US

Con

gres

s. T

he b

ill en

visa

ges

the

subs

idy’s

ext

ensi

on fo

r 3 ye

ars –

retro

activ

e fro

m 1

Janu

ary 2

017

and

thro

ugh

31 D

ecem

ber

2019

. How

ever

, the

mai

n ch

ange

con

cern

s th

e st

age

in th

e su

pply

cha

in th

at w

ill re

ceiv

e th

e ta

x in

cent

ive:

und

er th

e pr

opos

ed b

ill, th

e su

bsid

y w

ould

be

prov

ided

to d

omes

tic b

iodi

esel

pr

oduc

ers

rath

er th

an b

lend

ers.

Sin

ce it

s in

trodu

ctio

n in

200

5, th

e ta

x in

cent

ive

was

dire

cted

to

ble

nder

s, m

akin

g no

dis

tinct

ion

whe

ther

the

feed

stoc

k us

ed w

as p

rodu

ced

dom

estic

ally

or

impo

rted

from

abr

oad

– a

prov

isio

n th

at h

as s

timul

ated

the

impo

rtatio

n of

com

petit

ivel

y pr

iced

bi

odie

sel i

nto

the

coun

try, i

n pa

rt di

spla

cing

US

prod

uct.

The

prop

osed

shi

ft to

a p

rodu

cers

’ cr

edit

is a

imed

at p

reve

ntin

g fo

reig

n m

anuf

actu

rers

from

acc

essi

ng th

e ta

x be

nefit

. How

ever

, th

e re

form

is o

ppos

ed b

y so

me,

who

arg

ue th

at th

e sh

ift w

ould

incr

ease

pro

fits

for a

lim

ited

num

ber

of p

rodu

cers

, pos

sibl

y re

duci

ng t

he o

vera

ll av

aila

bilit

y of

bio

dies

el a

nd d

rivin

g up

its

pric

e. P

revi

ous

bids

to c

onve

rt th

e bl

ende

rs’ c

redi

t int

o a

prod

ucer

ince

ntiv

e ha

ve b

een

turn

ed d

own

by th

e U

S C

ongr

ess

(see

MPP

U A

ug.’1

5 &

Feb.

’16)

. A

sepa

rate

ly in

trodu

ced

bill

prop

oses

to

put

an e

nd t

o fe

dera

l tax

cre

dits

for

biod

iese

l pro

duce

d w

ith a

nim

al fa

ts.

Alle

gedl

y, th

e cu

rrent

pol

icy

dist

orts

the

dom

estic

mar

ket

for

anim

al f

ats

by d

iver

ting

this

im

porta

nt ra

w m

ater

ial a

way

from

the

man

ufac

turin

g of

cle

anin

g an

d pe

rson

al c

are

prod

ucts

.

97BI

OFU

EL P

OLI

CIE

SU

nite

d St

ates

June

Biod

iese

lFi

ve p

erce

nt b

iodi

esel

ble

nds

in h

ome

heat

ing

oil w

ill be

com

e m

anda

tory

in N

ew Y

ork

City

and

do

wns

tate

New

Yor

k co

untie

s by

, res

pect

ivel

y, 1s

t Oct

ober

201

7 an

d 1s

t Jul

y 20

18. W

ith a

vi

ew to

redu

ce th

e re

gion

’s ca

rbon

foot

prin

t, N

ew Y

ork

City

man

date

d 2

perc

ent b

lend

s ba

ck

in 2

012,

with

sub

sequ

ent i

ncre

ases

set

to le

ad to

20

perc

ent b

lend

s by

203

4. R

epor

tedl

y, th

e ci

ty is

the

Uni

ted

Stat

es’ l

arge

st m

unic

ipal

con

sum

er o

f hea

ting

oil.

Oilcrops complex: Policy changes and industry measures - Annual compendium 2017 21

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

98BI

OFU

EL P

OLI

CIE

SU

nite

d St

ates

July

Biod

iese

lTh

e U

.S.

Envi

ronm

enta

l Pr

otec

tion

Agen

cy (

EPA)

pub

lishe

d its

pro

posa

ls f

or m

anda

tory

co

nsum

ptio

n of

tota

l, con

vent

iona

l and

adv

ance

d re

new

able

fuel

s in

2018

, as w

ell a

s bio

mas

s-ba

sed

dies

el in

201

9. A

s in

pas

t ye

ars,

sev

eral

of t

he p

ropo

sed

volu

mes

ran

ge b

elow

the

st

atut

ory t

arge

ts se

t by C

ongr

ess i

n 20

07, a

llege

dly r

eflec

ting

the

need

to a

ccou

nt fo

r cha

ngin

g m

arke

t rea

litie

s. F

or 2

018,

EPA

pro

pose

d (i)

a s

light

yea

r-on-

year

dro

p in

the

volu

me

of to

tal

rene

wab

le f

uels

, w

hich

wou

ld k

eep

volu

mes

sig

nific

antly

bel

ow t

he c

ongr

essi

onal

tar

get;

(ii) to

leav

e no

n-ad

vanc

ed/‘c

onve

ntio

nal’

biof

uels

(mos

tly m

aize

-bas

ed e

than

ol) u

ncha

nged

co

mpa

red

to 2

017,

com

plia

nt w

ith th

e or

igin

al ta

rget

s; a

nd (i

ii) to

low

er a

dvan

ced

biof

uels

fro

m th

e 20

17 le

vel,

henc

e fa

lling

shor

t of s

tatu

tory

vol

umes

. Und

er th

e ‘a

dvan

ced

biof

uels

’ ca

tego

ry, v

olum

es o

f bio

mas

s-ba

sed

dies

el p

rodu

ced

from

veg

etab

le o

ils a

nd a

nim

al fa

ts

(whi

ch w

ere

rais

ed in

pas

t yea

rs) w

ould

rem

ain

unch

ange

d in

201

9. F

urth

erm

ore,

‘bio

mas

s-ba

sed

dies

el’ w

ould

con

tinue

to q

ualif

y as

wel

l und

er th

e ‘u

ndiff

eren

tiate

d ad

vanc

ed b

iofu

els’

ca

tego

ry. E

PA in

vite

d pu

blic

com

men

ts o

n th

e pr

opos

ed v

olum

es, i

nfor

min

g th

at fi

nal fi

gure

s w

ould

be

publ

ishe

d by

30

Nov

embe

r 201

7. R

epre

sent

ativ

es o

f the

cou

ntry

’s bi

odie

sel in

dust

ry

mai

ntai

ned

that

EPA

’s bi

odie

sel p

ropo

sal c

ontin

ues

to u

nder

estim

ate

the

sect

or’s

capa

city

to

prod

uce

muc

h hi

gher

vol

umes

.

99BI

OFU

EL P

OLI

CIE

SU

nite

d St

ates

July

Biod

iese

lDi

rect

ly r

elat

ed t

o th

e ab

ove,

in J

uly

2017

, a U

.S. c

ourt

rule

d th

at t

he m

etho

dolo

gy u

sed

by E

PA to

just

ify p

ast r

educ

tions

in b

iofu

el c

onsu

mpt

ion

man

date

s (re

lativ

e to

the

stat

utor

y ta

rget

s se

t by

Con

gres

s) w

as in

corre

ct. T

he ru

ling

was

mad

e in

resp

onse

to a

pet

ition

file

d in

201

6 by

an

allia

nce

of b

iofu

el a

dvoc

acy

grou

ps. A

ccor

ding

to th

e co

urt r

ulin

g, ra

ther

than

ta

king

into

acc

ount

rene

wab

le fu

el s

uppl

ies

avai

labl

e to

refin

ers

and

impo

rters

, EPA

prim

arily

co

nsid

ered

bio

fuel

dem

and

expr

esse

d by

con

sum

ers

– a

cons

ider

atio

n no

t al

low

ed u

nder

th

e re

leva

nt la

w. T

he ru

ling

coul

d fo

rce

EPA

to re

vise

upw

ard

the

cons

umpt

ion

targ

ets

set f

or

2016

. Rep

orte

dly,

the

cour

t dec

isio

n re

sulte

d in

US

rene

wab

le fu

el c

redi

ts c

limbi

ng to

mul

ti-m

onth

hig

hs, w

hile

sha

re p

rices

of m

iner

al o

il re

finer

s dr

oppe

d.

100

BIO

FUEL

PO

LIC

IES

Uni

ted

Stat

esAu

gust

Biod

iese

lM

inne

sota

– th

e fir

st s

tate

in th

e na

tion

to m

anda

te b

iodi

esel

use

bac

k in

200

5 –

is s

et to

ra

ise

its b

iodi

esel

sta

ndar

d fro

m 1

0 to

20

perc

ent i

n M

ay n

ext y

ear.

Acco

rdin

gly,

only

die

sel

cont

aini

ng 2

0 pe

rcen

t bio

dies

el m

ay b

e so

ld b

etw

een

May

and

Oct

ober

, whe

n fu

el s

tatio

ns w

ill sw

itch

back

to 5

per

cent

, as

biod

iese

l tur

ns fr

om fl

uid

to g

el u

nder

col

der t

empe

ratu

res.

The

hi

gher

ble

ndin

g m

anda

te is

mea

nt to

(i) h

elp

pres

erve

and

pro

tect

Min

neso

ta’s

air a

nd w

ater

qu

ality

, (ii)

redu

ce th

e st

ate’

s re

lianc

e on

foss

il fue

ls, a

nd (i

ii) su

ppor

t dem

and

for l

ocal

ly g

row

n bi

odie

sel f

eeds

tock

, not

ably

soy

bean

s. F

uel p

rodu

cers

and

the

truck

ing

indu

stry

exp

ress

ed

conc

ern

abou

t the

new

mea

sure

, sta

ting

that

the

infra

stru

ctur

e re

quire

d to

han

dle

the

high

er

blen

ds w

as n

ot y

et a

vaila

ble.

22 Oilcrops complex: Policy changes and industry measures - Annual compendium 2017

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

101

BIO

FUEL

PO

LIC

IES

Uni

ted

Stat

esSe

ptem

ber

Biod

iese

lTh

e U

.S.

Envi

ronm

enta

l Pro

tect

ion

Agen

cy (E

PA) i

s co

nsid

erin

g to

red

uce

the

man

dato

ry

rene

wab

le fu

el c

onsu

mpt

ion

targ

ets

for 2

018

and

2019

that

it p

ropo

sed

earli

er th

is y

ear (

see

MPP

U A

ug.’1

7) a

nd is

see

king

pub

lic c

omm

ents

in th

is re

gard

. Rep

orte

dly,

EPA

deci

ded

to

revi

sit i

ts o

rigin

al p

ropo

sal a

s ne

w d

ata

on p

rodu

ctio

n, im

ports

and

cos

ts o

f bio

dies

el h

ave

beco

me

avai

labl

e. A

llege

dly,

the

pric

e of

bio

dies

el to

ble

nder

s as

wel

l as

the

pric

e of

bio

dies

el

blen

ds t

o co

nsum

ers

has

incr

ease

d fo

llow

ing

the

expi

ratio

n of

the

bio

dies

el t

ax c

redi

t in

De

cem

ber 2

016

(see

also

MPP

U J

une’

17).

Mor

eove

r, pr

ices

may

con

tinue

to ri

se a

s a

resu

lt of

the

rece

nt p

relim

inar

y de

term

inat

ion

of c

ount

erva

iling

dutie

s on

impo

rts o

f bio

dies

el fr

om

Arge

ntin

a an

d In

done

sia

(see

MPP

U S

ep.’1

7), s

aid

EPA.

The

refo

re, t

he a

genc

y is

con

cern

ed

that

the

orig

inal

ly p

ropo

sed

targ

ets

may

lead

to in

adeq

uate

dom

estic

sup

plie

s of

bio

fuel

to

cons

umer

s, a

nd is

hen

ce e

valu

atin

g th

e po

ssib

ility

of s

ettin

g lo

wer

con

sum

ptio

n ta

rget

s. T

he

dom

estic

bio

dies

el in

dust

ry q

uest

ione

d EP

A’s

ratio

nale

, stre

ssin

g th

at th

e co

untry

’s bi

odie

sel

prod

uctio

n ca

paci

ty w

as s

uffici

ent

to m

eet

the

orig

inal

tar

gets

. Re

cent

ly, t

he A

mer

ican

So

ybea

n As

soci

atio

n ev

en u

rged

the

agen

cy to

rai

se th

e ta

rget

for

biom

ass-

base

d di

esel

, ar

guin

g th

at b

iodi

esel

pro

duct

ion

crea

tes

a va

lue-

adde

d m

arke

t for

the

coun

try’s

abun

dant

so

ybea

n oi

l sup

plie

s an

d th

at th

e co

untry

’s gr

owin

g so

ybea

n pr

oduc

tion

coul

d su

ppor

t hig

her

dem

and

for b

iodi

esel

with

out l

eadi

ng to

pric

e in

crea

ses.

102

BIO

FUEL

PO

LIC

IES

Uni

ted

Stat

esN

ovem

ber

Biod

iese

lFo

llow

ing

cons

ulta

tions

with

law

mak

ers,

the

U.S

. En

viro

nmen

tal P

rote

ctio

n Ag

ency

(EP

A)

deci

ded

to a

band

on it

s re

cent

pro

posa

l to

low

er th

e m

anda

tory

targ

ets

for

rene

wab

le fu

el

prod

uctio

n in

201

8 an

d 20

19 (s

ee M

PPU

Aug

. & O

ct.’1

7). T

he d

efini

tive

targ

ets

anno

unce

d fo

r 20

18 e

ntai

l i) a

frac

tiona

l incr

ease

– c

ompa

red

to 2

017

– in

the

tota

l ren

ewab

le fu

els

volu

me;

ii)

unch

ange

d le

vels

of n

on-a

dvan

ced/

conv

entio

nal b

iofu

els;

and

iii) a

mar

gina

l ris

e fo

r adv

ance

d bi

ofue

ls.

Und

er t

he ‘

adva

nced

bio

fuel

s’ c

ateg

ory,

volu

mes

of

biom

ass-

base

d di

esel

hav

e be

en s

et a

t 2.1

billi

on g

allo

ns fo

r bot

h 20

18 a

nd 2

019

– w

hich

com

pare

s to

1.9

billi

on g

allo

ns

in 2

017.

The

cou

ntry

’s bi

odie

sel i

ndus

try c

ritic

ized

the

final

targ

ets,

arg

uing

that

thes

e re

mai

n w

ell b

elow

the

sect

or’s

prod

uctio

n ca

paci

ty.

103

MAR

KET

POLI

CIE

S –

Mar

ket r

egul

atio

nAr

gent

ina

Janu

ary

Plan

ting

seed

In 2

017,

Arg

entin

a’s

natio

nal s

eed

agen

cy (I

NAS

E) w

ill co

ntin

ue te

stin

g fa

rmer

s’ c

rops

for t

he

pres

ence

of G

M tr

aits

, priv

ate

sour

ces

repo

rted.

Las

t yea

r, th

e go

vern

men

t ent

rust

ed IN

ASE

with

this

task

to fa

cilit

ate

the

colle

ctio

n of

roya

lties

by

seed

pro

duce

rs (s

ee M

PPU

Jul

y’16

). Re

porte

dly,

polic

y m

aker

s an

d se

ed c

ompa

nies

are

wor

king

on

a pe

rman

ent

seed

bill,

in

repl

acem

ent o

f the

cur

rent

tem

pora

ry a

rrang

emen

t.

104

MAR

KET

POLI

CIE

S –

Mar

ket r

egul

atio

nAr

gent

ina

June

Plan

ting

seed

In a

bid

to e

nsur

e fu

ll tra

nspa

renc

y in

the

dom

estic

see

d m

arke

t and

faci

litat

e th

e co

llect

ion

of ro

yalti

es b

y se

ed p

rodu

cers

, the

cou

ntry

’s M

inis

try o

f Agr

icul

ture

rem

inde

d fa

rmer

s of

thei

r ob

ligat

ion

to fo

rmal

ly d

ecla

re t

he q

uant

ity a

nd o

rigin

of s

eeds

kep

t on

-farm

for

plan

ting

– fa

iling

whi

ch th

ey fa

ce fi

nes

and

lose

the

perm

issi

on to

use

see

ds c

omin

g fro

m p

rior h

arve

sts

for p

lant

ing

(see

also

MPP

U F

eb.’1

7).

105

MAR

KET

POLI

CIE

S –

Mar

ket r

egul

atio

nC

anad

a M

ayG

rain

s, o

ilsee

dsW

hile

Can

ada’

s la

wm

aker

s co

ntin

ue w

orki

ng o

n am

endm

ents

of t

he c

ount

ry’s

Tran

spor

tatio

n Ac

t (se

e M

PPU

Dec

.’16)

, the

Gov

ernm

ent i

s co

nsid

erin

g ex

tend

ing

a te

mpo

rary

reve

nue

cap

on ra

il tra

nspo

rts o

f gra

ins

and

oils

eeds

from

Can

ada’

s W

este

rn re

gion

s to

the

coun

try’s

mai

n po

rts b

eyon

d its

cur

rent

exp

iry d

ate

of 1

Aug

ust 2

017.

Oilcrops complex: Policy changes and industry measures - Annual compendium 2017 23

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

101

BIO

FUEL

PO

LIC

IES

Uni

ted

Stat

esSe

ptem

ber

Biod

iese

lTh

e U

.S.

Envi

ronm

enta

l Pro

tect

ion

Agen

cy (E

PA) i

s co

nsid

erin

g to

red

uce

the

man

dato

ry

rene

wab

le fu

el c

onsu

mpt

ion

targ

ets

for 2

018

and

2019

that

it p

ropo

sed

earli

er th

is y

ear (

see

MPP

U A

ug.’1

7) a

nd is

see

king

pub

lic c

omm

ents

in th

is re

gard

. Rep

orte

dly,

EPA

deci

ded

to

revi

sit i

ts o

rigin

al p

ropo

sal a

s ne

w d

ata

on p

rodu

ctio

n, im

ports

and

cos

ts o

f bio

dies

el h

ave

beco

me

avai

labl

e. A

llege

dly,

the

pric

e of

bio

dies

el to

ble

nder

s as

wel

l as

the

pric

e of

bio

dies

el

blen

ds t

o co

nsum

ers

has

incr

ease

d fo

llow

ing

the

expi

ratio

n of

the

bio

dies

el t

ax c

redi

t in

De

cem

ber 2

016

(see

also

MPP

U J

une’

17).

Mor

eove

r, pr

ices

may

con

tinue

to ri

se a

s a

resu

lt of

the

rece

nt p

relim

inar

y de

term

inat

ion

of c

ount

erva

iling

dutie

s on

impo

rts o

f bio

dies

el fr

om

Arge

ntin

a an

d In

done

sia

(see

MPP

U S

ep.’1

7), s

aid

EPA.

The

refo

re, t

he a

genc

y is

con

cern

ed

that

the

orig

inal

ly p

ropo

sed

targ

ets

may

lead

to in

adeq

uate

dom

estic

sup

plie

s of

bio

fuel

to

cons

umer

s, a

nd is

hen

ce e

valu

atin

g th

e po

ssib

ility

of s

ettin

g lo

wer

con

sum

ptio

n ta

rget

s. T

he

dom

estic

bio

dies

el in

dust

ry q

uest

ione

d EP

A’s

ratio

nale

, stre

ssin

g th

at th

e co

untry

’s bi

odie

sel

prod

uctio

n ca

paci

ty w

as s

uffici

ent

to m

eet

the

orig

inal

tar

gets

. Re

cent

ly, t

he A

mer

ican

So

ybea

n As

soci

atio

n ev

en u

rged

the

agen

cy to

rai

se th

e ta

rget

for

biom

ass-

base

d di

esel

, ar

guin

g th

at b

iodi

esel

pro

duct

ion

crea

tes

a va

lue-

adde

d m

arke

t for

the

coun

try’s

abun

dant

so

ybea

n oi

l sup

plie

s an

d th

at th

e co

untry

’s gr

owin

g so

ybea

n pr

oduc

tion

coul

d su

ppor

t hig

her

dem

and

for b

iodi

esel

with

out l

eadi

ng to

pric

e in

crea

ses.

102

BIO

FUEL

PO

LIC

IES

Uni

ted

Stat

esN

ovem

ber

Biod

iese

lFo

llow

ing

cons

ulta

tions

with

law

mak

ers,

the

U.S

. En

viro

nmen

tal P

rote

ctio

n Ag

ency

(EP

A)

deci

ded

to a

band

on it

s re

cent

pro

posa

l to

low

er th

e m

anda

tory

targ

ets

for

rene

wab

le fu

el

prod

uctio

n in

201

8 an

d 20

19 (s

ee M

PPU

Aug

. & O

ct.’1

7). T

he d

efini

tive

targ

ets

anno

unce

d fo

r 20

18 e

ntai

l i) a

frac

tiona

l incr

ease

– c

ompa

red

to 2

017

– in

the

tota

l ren

ewab

le fu

els

volu

me;

ii)

unch

ange

d le

vels

of n

on-a

dvan

ced/

conv

entio

nal b

iofu

els;

and

iii) a

mar

gina

l ris

e fo

r adv

ance

d bi

ofue

ls.

Und

er t

he ‘

adva

nced

bio

fuel

s’ c

ateg

ory,

volu

mes

of

biom

ass-

base

d di

esel

hav

e be

en s

et a

t 2.1

billi

on g

allo

ns fo

r bot

h 20

18 a

nd 2

019

– w

hich

com

pare

s to

1.9

billi

on g

allo

ns

in 2

017.

The

cou

ntry

’s bi

odie

sel i

ndus

try c

ritic

ized

the

final

targ

ets,

arg

uing

that

thes

e re

mai

n w

ell b

elow

the

sect

or’s

prod

uctio

n ca

paci

ty.

103

MAR

KET

POLI

CIE

S –

Mar

ket r

egul

atio

nAr

gent

ina

Janu

ary

Plan

ting

seed

In 2

017,

Arg

entin

a’s

natio

nal s

eed

agen

cy (I

NAS

E) w

ill co

ntin

ue te

stin

g fa

rmer

s’ c

rops

for t

he

pres

ence

of G

M tr

aits

, priv

ate

sour

ces

repo

rted.

Las

t yea

r, th

e go

vern

men

t ent

rust

ed IN

ASE

with

this

task

to fa

cilit

ate

the

colle

ctio

n of

roya

lties

by

seed

pro

duce

rs (s

ee M

PPU

Jul

y’16

). Re

porte

dly,

polic

y m

aker

s an

d se

ed c

ompa

nies

are

wor

king

on

a pe

rman

ent

seed

bill,

in

repl

acem

ent o

f the

cur

rent

tem

pora

ry a

rrang

emen

t.

104

MAR

KET

POLI

CIE

S –

Mar

ket r

egul

atio

nAr

gent

ina

June

Plan

ting

seed

In a

bid

to e

nsur

e fu

ll tra

nspa

renc

y in

the

dom

estic

see

d m

arke

t and

faci

litat

e th

e co

llect

ion

of ro

yalti

es b

y se

ed p

rodu

cers

, the

cou

ntry

’s M

inis

try o

f Agr

icul

ture

rem

inde

d fa

rmer

s of

thei

r ob

ligat

ion

to fo

rmal

ly d

ecla

re t

he q

uant

ity a

nd o

rigin

of s

eeds

kep

t on

-farm

for

plan

ting

– fa

iling

whi

ch th

ey fa

ce fi

nes

and

lose

the

perm

issi

on to

use

see

ds c

omin

g fro

m p

rior h

arve

sts

for p

lant

ing

(see

also

MPP

U F

eb.’1

7).

105

MAR

KET

POLI

CIE

S –

Mar

ket r

egul

atio

nC

anad

a M

ayG

rain

s, o

ilsee

dsW

hile

Can

ada’

s la

wm

aker

s co

ntin

ue w

orki

ng o

n am

endm

ents

of t

he c

ount

ry’s

Tran

spor

tatio

n Ac

t (se

e M

PPU

Dec

.’16)

, the

Gov

ernm

ent i

s co

nsid

erin

g ex

tend

ing

a te

mpo

rary

reve

nue

cap

on ra

il tra

nspo

rts o

f gra

ins

and

oils

eeds

from

Can

ada’

s W

este

rn re

gion

s to

the

coun

try’s

mai

n po

rts b

eyon

d its

cur

rent

exp

iry d

ate

of 1

Aug

ust 2

017.

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

106

MAR

KET

POLI

CIE

S –

Mar

ket r

egul

atio

nTh

aila

ndJu

nePa

lm o

il,

biod

iese

lTh

e G

over

nmen

t of T

haila

nd p

erio

dica

lly im

plem

ents

mea

sure

s to

sta

biliz

e th

e do

mes

tic p

rice

of p

alm

oil

in a

bid

to s

uppo

rt pr

oduc

ers

or c

onsu

mer

s. A

ccor

ding

to m

edia

repo

rts, i

n Ju

ne

2017

, the

Gov

ernm

ent i

nvite

d re

taile

rs o

f (pa

lm o

il-ba

sed)

bio

dies

el to

incr

ease

thei

r sto

cks

of th

e fu

el b

y 40

per

cent

so

as to

hel

p ab

sorb

exc

ess

palm

oil s

uppl

ies

and

supp

ort d

omes

tic

pric

es. R

epor

tedl

y, du

ring

the

rece

nt p

rodu

ctio

n pe

ak th

e pr

ice

of p

alm

oil

tum

bled

, hur

ting

farm

ers.

The

Gov

ernm

ent’s

sto

ck-h

oldi

ng p

ropo

sal i

s ex

pect

ed to

hel

p ab

sorb

an

addi

tiona

l 76

000

tonn

es o

f pal

m o

il fro

m th

e m

arke

t. To

sup

port

farm

ers,

the

Gov

ernm

ent a

lso

rais

ed

the

floor

pric

e fo

r pal

m fr

uit t

o 4.

30 T

HB

per k

g (U

SD 1

26 p

er to

nne)

, whi

ch, r

epor

tedl

y, ha

s he

lped

to k

eep

the

mar

ket p

rice

for c

rude

pal

m o

il at

aro

und

THB

23 p

er k

g (U

SD 6

74 p

er

tonn

e).

107

MAR

KET

POLI

CIE

S –

Mar

ket r

egul

atio

nTh

aila

ndDe

cem

ber

Palm

oil

Repo

rtedl

y, to

war

ds th

e en

d of

last

yea

r, Th

aila

nd’s

inve

ntor

ies

of c

rude

pal

m o

il hav

e sw

olle

n to

hal

f a m

illion

tonn

es, c

ausi

ng p

rices

for f

resh

pal

m fr

uit t

o sl

ide

belo

w T

HB

3.50

per

kg

– co

mpa

red

to p

rice

leve

ls o

f TH

B 5.

0 in

Jun

e la

st y

ear

(resp

ectiv

ely,

USD

110

and

157

per

to

nne)

. In

a bi

d to

pro

tect

gro

wer

s’ in

com

es, t

he G

over

nmen

t pla

ns to

i) fo

ster

the

upta

ke o

f cr

ude

palm

oil

by th

e co

untry

’s en

ergy

sec

tor,

and

ii) se

ek n

ew e

xpor

t opp

ortu

nitie

s w

ithin

As

ia, n

otab

ly in

Chi

na a

nd In

dia.

The

dom

estic

targ

et p

rice

for f

resh

pal

m fr

uit h

as b

een

set

at T

HB

4.00

per

kg,

whi

ch c

ompa

res

to p

rodu

ctio

n co

sts

of a

bout

TH

B 3.

80 p

er k

g (U

SD 1

25

and

119

per

tonn

e, r

espe

ctiv

ely)

. Sim

ilar

mea

sure

s ha

ve b

een

impl

emen

ted

in p

ast

year

s,

espe

cial

ly d

urin

g th

e ra

iny

seas

on, w

hen

high

dom

estic

pal

m o

il out

put t

ends

to d

epre

ss fa

rm

gate

pric

es (s

ee M

PPU

Apr

.’16

& Ju

ly’17

). Th

e Th

ai G

over

nmen

t reg

ular

ly h

olds

con

sulta

tions

w

ith fa

rmer

repr

esen

tativ

es, p

roce

ssor

s an

d co

nsum

ers

to c

oord

inat

e m

easu

res

to s

tabi

lize

dom

estic

pal

m o

il su

pplie

s an

d pr

ices

.

108

MAR

KET

POLI

CIE

S –

Mar

ket r

egul

atio

nU

krai

neJu

neSu

nflow

eroi

l, bu

tter

The

Ukr

aini

an G

over

nmen

t dec

ided

to d

isco

ntin

ue, f

rom

1 J

uly

2017

, sta

te re

gula

tion

of fo

od

pric

es, in

clud

ing

for s

unflo

wer

oil a

nd b

utte

r. Pr

evio

usly,

limits

wer

e im

pose

d on

rise

s in

mar

ket

pric

es, a

nd fo

od m

anuf

actu

rers

wer

e re

quire

d to

sub

mit

just

ifica

tions

for

pric

e ch

ange

s to

th

e co

ncer

ned

stat

e ag

ency

. Re

porte

dly,

an e

xper

imen

tal s

uspe

nsio

n of

pric

e re

gula

tions

im

plem

ente

d ov

er a

3-m

onth

per

iod

last

yea

r did

not

sig

nific

antly

affe

ct c

onsu

mer

pric

es.

109

MAR

KET

POLI

CIE

S –

Mar

ket r

egul

atio

nU

zbek

ista

nN

ovem

ber

Vege

tabl

e oi

ls,

cotto

nsee

d m

eal

Acco

rdin

g to

loca

l pre

ss re

ports

, the

Gov

ernm

ent h

as in

stru

cted

sta

te a

genc

ies

to s

tep

up

effor

ts to

end

the

unre

ason

able

and

arti

ficia

l ove

rsta

ting

of p

rices

for a

num

ber o

f bas

ic fo

ods

and

feed

stuff

s, in

clud

ing

vege

tabl

e oi

ls a

nd c

otto

nsee

d m

eal.

110

MAR

KET

POLI

CIE

S –

Publ

ic p

rocu

rem

ent &

st

ockh

oldi

ng

Chi

naM

arch

Rape

seed

oil

Gov

ernm

ent 2

016/

17 a

uctio

ns o

f rap

esee

d oi

l fro

m s

tate

rese

rves

end

ed in

Mar

ch 2

017.

Fro

m

mid

-Oct

ober

201

6 to

8 M

arch

201

7, a

tota

l of 2

.08

milli

on to

nnes

of r

apes

eed

oil h

ave

been

off

ered

, virt

ually

all

of w

hich

was

bou

ght b

y tra

ders

. Dur

ing

the

cam

paig

n, a

vera

ge a

uctio

n pr

ices

rang

ed fr

om C

NY

5 90

4 to

CN

Y 7

172

per t

onne

(res

pect

ivel

y, U

SD 8

56 a

nd 1

040)

.

111

MAR

KET

POLI

CIE

S –

Publ

ic p

rocu

rem

ent &

st

ockh

oldi

ng

Chi

naSe

ptem

ber

Soyb

ean

Sale

s of

soy

bean

s fro

m s

tate

rese

rves

wer

e re

sum

ed in

Sep

tem

ber 2

017.

Rep

orte

dly,

out o

f 30

0 00

0 to

nnes

offe

red,

abo

ut 2

15 5

00 to

nnes

hav

e be

en s

old,

ach

ievi

ng a

n av

erag

e pr

ice

of

CN

Y 3

140

per t

onne

(USD

474

). Th

e so

ybea

ns o

n off

er w

ere

from

old

cro

ps (2

013

and

olde

r),

give

n th

at, i

n 20

14, t

he G

over

nmen

t cha

nged

its

agric

ultu

ral s

uppo

rt po

licie

s, d

isco

ntin

uing

so

ybea

n pr

ocur

emen

t ope

ratio

ns.

112

MAR

KET

POLI

CIE

S –

Publ

ic p

rocu

rem

ent &

st

ockh

oldi

ng

Chi

naN

ovem

ber

Soyb

ean

In O

ctob

er 2

017,

out

of a

tota

l vol

ume

of 2

53 4

44 to

nnes

of s

oybe

ans

offer

ed fo

r sal

e fro

m

stat

e re

serv

es, o

nly

160

tonn

es fo

und

a bu

yer.

Repo

rtedl

y, th

e 20

13 c

rop

soyb

eans

ach

ieve

d an

ave

rage

pric

e of

CN

Y 3

070

per t

onne

(USD

464

). As

of 1

Nov

embe

r, st

ate

auct

ions

wer

e su

spen

ded

so a

s no

t to

disr

upt m

arke

ting

of th

e ne

w 2

017/

18 c

rop.

24 Oilcrops complex: Policy changes and industry measures - Annual compendium 2017

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

113

MAR

KET

POLI

CIE

S –

Publ

ic p

rocu

rem

ent &

st

ockh

oldi

ng

Indi

aJa

nuar

yC

opra

Last

Dec

embe

r, In

dia’

s N

atio

nal

Agric

ultu

ral

Coo

pera

tive

Mar

ketin

g Fe

dera

tion

(NAF

ED)

star

ted

proc

urem

ent o

f cop

ra in

Kar

nata

ka s

tate

in a

bid

to p

rote

ct g

row

ers

from

fallin

g pr

ices

of

the

com

mod

ity. I

n th

e 20

16/1

7 (J

uly-

June

) cro

p ye

ar, K

arna

taka

has

bec

ome

the

third

sta

te

afte

r An

dhra

Pra

desh

and

Tam

il N

adu

whe

re c

opra

is b

eing

bou

ght a

t the

fede

ral s

uppo

rt pr

ice

of IN

R 59

500

per

tonn

e (U

SD 8

90) f

or m

illing

qua

lity

copr

a an

d IN

R 62

400

per

tonn

e (U

SD 9

33) f

or b

all c

opra

.

114

MAR

KET

POLI

CIE

S –

Publ

ic p

rocu

rem

ent &

st

ockh

oldi

ng

Indi

aAu

gust

Oils

eeds

, pul

ses

Indi

a’s

Nat

iona

l Fed

erat

ion

of A

gric

ultu

ral M

arke

ting

Coo

pera

tives

(N

AFED

) –

the

agen

cy

resp

onsi

ble

for t

he p

rocu

rem

ent o

f agr

icul

tura

l com

mod

ities

und

er th

e co

untry

’s fe

dera

l Pric

e Su

ppor

t Sch

eme

(PSS

) – is

pre

parin

g th

e la

unch

of a

n el

ectro

nic

plat

form

for

coun

tryw

ide

proc

urem

ent o

f oils

eeds

and

pul

ses.

By

man

agin

g fa

rm-g

ate

purc

hase

s, s

tora

ge a

nd d

ispo

sal

oper

atio

ns th

roug

h an

effi

cien

t, tra

nspa

rent

and

com

petit

ive

e-pl

atfo

rm, N

AFED

exp

ects

to

help

gro

wer

s ob

tain

mor

e re

mun

erat

ive

pric

es, w

hile

als

o co

ntai

ning

con

sum

er p

rices

.

115

MAR

KET

POLI

CIE

S –

Publ

ic p

rocu

rem

ent &

st

ockh

oldi

ng

Indi

aO

ctob

erG

roun

dnut

, so

ybea

nIn

Guj

arat

sta

te, p

ublic

pro

cure

men

t of

gro

undn

uts

is s

ched

uled

to

begi

n on

25

Oct

ober

, go

vern

men

t offi

cial

s in

form

ed.

Loca

l co

conu

t pr

oduc

er c

oope

rativ

es (

desi

gnat

ed b

y th

e st

ate-

leve

l pro

cure

men

t age

ncie

s) w

ill be

in c

harg

e of

the

oper

atio

ns. R

epor

tedl

y, un

shel

led

grou

ndnu

t w

ill be

pro

cure

d at

a r

ate

of I

NR

45 0

00 p

er t

onne

, as

aga

inst

the

pre

vailin

g m

arke

t pric

e of

INR

31 2

50 p

er to

nne

(resp

ectiv

ely

USD

688

and

478

). Si

mila

rly, i

n Ra

jast

han

stat

e, p

ublic

pro

cure

men

t of s

oybe

ans

and

grou

ndnu

ts c

omm

ence

d in

Oct

ober

. Rep

orte

dly,

29 p

rocu

rem

ent

cent

ers

are

oper

atio

nal f

or g

roun

dnut

s an

d an

othe

r 25

for

soy

bean

s. T

o fa

cilit

ate

oper

atio

ns,

farm

ers

can

subm

it ap

plic

atio

ns o

nlin

e an

d pa

ymen

ts w

ill be

mad

e di

rect

ly in

to th

eir a

ccou

nt, G

over

nmen

t offi

cial

s inf

orm

ed. T

he su

ppor

t pric

es fo

r soy

bean

s and

un

shel

led

grou

ndnu

ts w

ill be

, res

pect

ivel

y, IN

R 30

500

and

INR

44 5

00 p

er to

nne

(resp

ectiv

ely,

USD

466

and

680

).

116

MAR

KET

POLI

CIE

S –

Publ

ic p

rocu

rem

ent &

st

ockh

oldi

ng

Indo

nesi

aM

aySo

ybea

nIn

done

sia’

s St

ate

Logi

stic

s Ag

ency

(BU

LOG

) allo

cate

d ID

R 37

trilli

on (U

SD 2

.8 b

illion

) for

the

proc

urem

ent o

f ric

e, s

oybe

ans

and

suga

r. BU

LOG

’s pu

rcha

ses,

whi

ch c

an e

ither

be

mad

e on

the

dom

estic

mar

ket o

r ab

road

, will

be a

imed

at s

tabi

lizin

g do

mes

tic c

onsu

mer

pric

es.

Furth

erm

ore,

BU

LOG

is s

eeki

ng to

impr

ove

coop

erat

ion

with

priv

ate

stak

ehol

ders

that

agr

ee

to s

ell t

he c

omm

oditi

es a

t the

pric

es s

et b

y th

e ag

ency

. Mor

eove

r, BU

LOG

pla

ns to

con

tinue

in

vest

ing

in p

ost-h

arve

st in

frast

ruct

ure,

not

ably

sto

rage

faci

litie

s, in

ord

er to

stre

ngth

en th

e ag

ency

’s ca

paci

ty to

buy

from

loca

l far

mer

s.

117

MAR

KET

POLI

CIE

S –

Publ

ic p

rocu

rem

ent &

st

ockh

oldi

ng

Sri L

anka

Sept

embe

rC

ocon

utTo

che

ck r

ecen

t su

rges

in d

omes

tic p

rices

, co

conu

t st

ocks

ow

ned

by S

ri La

nka’

s St

ate

Plan

tatio

n C

orpo

ratio

n w

ill be

rele

ased

into

the

mar

ket a

t a p

rice

of L

KR 6

0 pe

r nut

(USD

0.3

9),

the

coun

try’s

Coc

onut

Cul

tivat

ion

Boar

d in

form

ed. R

epor

tedl

y, al

so fr

eshl

y pr

ocur

ed c

ocon

uts

will

be d

istri

bute

d. A

ccor

ding

to a

mar

ket s

urve

y, in

Sep

tem

ber,

the

pric

e fo

r a s

ingl

e co

conu

t cl

imbe

d to

LKR

100

(USD

0.6

5).

118

TRAD

E PO

LIC

IES

– Im

port

mea

sure

s -

non-

tariff

Chi

na, A

rgen

tina

Augu

stSo

ybea

n oi

l As

par

t of c

ompr

ehen

sive

talk

s on

bal

anci

ng tr

ade

betw

een

the

two

coun

tries

, Chi

na a

gree

d to

res

ume

impo

rts o

f so

ybea

n oi

l fro

m A

rgen

tina.

Chi

na’s

stat

e-ow

ned

grai

n co

rpor

atio

n Si

nogr

ain

confi

rmed

it w

as re

ady

to p

urch

ase

soyb

ean

oil f

rom

the

wor

ld’s

top

supp

lier.

Chi

na

star

ted

rest

rictin

g im

ports

from

Arg

entin

a on

phy

tosa

nita

ry g

roun

ds in

201

0, w

hen

annu

al

purc

hase

s dr

oppe

d fro

m 2

milli

on to

nnes

to le

ss th

an 5

00 0

00 to

nnes

.

Oilcrops complex: Policy changes and industry measures - Annual compendium 2017 25

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

119

TRAD

E PO

LIC

IES

– Im

port

mea

sure

s -

non-

tariff

Chi

naSe

ptem

ber

Vege

tabl

e oi

lsC

hina

’s Fo

od S

tand

ards

Age

ncy

gran

ted

a tw

o-ye

ar tr

ansi

tiona

l per

iod

– un

til 3

0 Se

ptem

ber

2019

– f

or t

he i

mpl

emen

tatio

n of

foo

d im

port

regu

latio

ns t

hat

wer

e an

noun

ced

back

in

April

201

6 (s

ee M

PPU

Jun

e’16

). Th

e ne

w re

gula

tions

requ

ire im

porte

rs o

f cer

tain

pro

duct

s –

incl

udin

g bu

lk v

eget

able

oil

– to

rev

iew

rel

evan

t he

alth

cer

tifica

tes

and

cond

uct

on-s

ite

insp

ectio

ns o

f fo

reig

n es

tabl

ishm

ents

fro

m w

hich

pro

duct

s ar

e so

urce

d. T

he t

rans

ition

al

perio

d ha

s be

en a

ccor

ded

to a

llow

impo

rters

/exp

orte

rs s

uffici

ent t

ime

to c

ompl

y w

ith th

e ne

w

requ

irem

ent.

120

TRAD

E PO

LIC

IES

– Im

port

mea

sure

s -

non-

tariff

Chi

naDe

cem

ber

Soyb

ean

Con

cern

ed a

bout

the

pre

senc

e of

wee

d se

eds

in p

ast

cons

ignm

ents

of

soyb

eans

fro

m

the

Uni

ted

Stat

es, C

hine

se a

utho

ritie

s de

cide

d to

low

er –

as

of 1

Jan

uary

201

8 –

the

leve

l of

impu

ritie

s al

low

ed in

U.S

. so

ybea

n ca

rgoe

s to

1 p

erce

nt.

In t

he U

nite

d Sa

tes,

qua

lity

spec

ifica

tions

for N

o. 2

yel

low

soy

bean

s –

the

varie

ty d

omin

atin

g U

.S. s

hipm

ents

– a

llow

for

up to

2 p

erce

nt o

f for

eign

mat

eria

l. C

hina

’s in

spec

tion

and

quar

antin

e se

rvic

es in

form

ed th

ey

wou

ld n

ot g

uara

ntee

spe

edy

hand

ling

of c

argo

es c

onta

inin

g m

ore

than

1 p

erce

nt o

f for

eign

m

atte

r, ad

ding

that

con

sign

men

ts w

ith h

ighe

r im

purit

y le

vels

cou

ld b

e su

bjec

t to

addi

tiona

l in

spec

tions

, cle

anin

g an

d re

late

d m

easu

res

inte

nded

to m

itiga

te p

est r

isk.

In re

cent

yea

rs, U

S fa

rmer

s hav

e be

en c

onfro

nted

with

new

her

bici

de-re

sist

ant w

eeds

, tra

ces o

f whi

ch m

ay in

deed

ap

pear

in h

arve

sted

bea

ns. A

ccor

ding

to in

dust

ry s

ourc

es, a

bout

hal

f of U

S so

ybea

ns s

hipp

ed

to C

hina

last

yea

r wou

ld n

ot m

eet C

hina

’s m

ore

strin

gent

sta

ndar

d. E

xper

ts e

stim

ated

that

re

duci

ng th

e co

nten

t of f

orei

gn m

atte

r to

1 pe

rcen

t cou

ld ra

ise

the

cost

s of

shi

ppin

g so

ybea

ns

to C

hina

by

15 U

S ce

nts

per b

ushe

l (U

SD 4

per

tonn

e). T

o pr

even

t dis

rupt

ions

in e

xpor

t flow

s,

USD

A’s

Fede

ral G

rain

Insp

ectio

n Se

rvic

e in

tend

s to

exa

min

e al

l soy

bean

dis

patc

hes

dest

ined

to

Chi

na, h

oldi

ng b

ack

cons

ignm

ents

tha

t fa

il to

mee

t th

e st

ricte

r st

anda

rd. F

urth

erm

ore,

U

SDA

will

com

mis

sion

wor

k on

pro

duct

ion

and

harv

estin

g m

etho

ds th

at a

llow

redu

cing

wee

d se

ed c

onta

min

atio

n in

soy

bean

del

iver

ies.

121

TRAD

E PO

LIC

IES

– Im

port

mea

sure

s -

non-

tariff

Euro

pean

Uni

on,

Nig

eria

June

Gro

undn

ut, p

alm

oi

l, se

sam

eAc

cord

ing

to N

iger

ia’s

Food

and

Dru

g Ag

ency

, las

t yea

r, th

e EU

reje

cted

24

food

pro

duct

s or

igin

atin

g fro

m N

iger

ia fo

r fai

ling

to m

eet t

he b

loc’

s tra

de s

tand

ards

. Rep

orte

dly,

grou

ndnu

t, pa

lm o

il an

d se

sam

e se

eds

figur

ed p

rom

inen

tly a

mon

g th

e re

ject

ed c

omm

oditi

es,

with

afl

atox

in c

onta

min

atio

n (g

roun

dnut

) and

the

pres

ence

of t

oxic

col

ourin

g ag

ents

(pal

m o

il) as

ke

y is

sues

. Rep

orte

dly,

the

conc

erne

d sh

ipm

ents

left

the

coun

try ill

egal

ly, w

ithou

t the

requ

ired

certi

ficat

ion.

122

TRAD

E PO

LIC

IES

– Im

port

mea

sure

s -

non-

tariff

Isra

elN

ovem

ber

Oliv

e oi

lTh

e G

over

nmen

t of I

srae

l ann

ounc

ed a

n in

crea

se in

the

amou

nt o

f oliv

e oi

l tha

t can

be

impo

rted

into

the

coun

try fr

ee o

f dut

ies

and

othe

r tax

es. O

ver t

he n

ext t

hree

yea

rs, t

he d

uty-

free

quot

a w

ill be

gra

dual

ly ra

ised

from

5 0

00 to

7 0

00 to

nnes

per

yea

r. C

urre

ntly,

the

coun

try c

onsu

mes

ab

out 2

0 00

0 to

nnes

ann

ually

, of w

hich

15

000

tonn

es a

re lo

cally

pro

duce

d. L

ocal

pro

duct

ion

is e

xpec

ted

to c

ontin

ue la

ggin

g be

hind

dom

estic

dem

and.

The

trad

e po

licy

mea

sure

is a

imed

at

driv

ing

dow

n th

e pr

ice

of o

live

oil t

o co

nsum

ers

and

stim

ulat

e ol

ive

oil c

onsu

mpt

ion.

Out

-of

-quo

ta im

ports

will

cont

inue

to a

ttrac

t tar

iffs

of a

roun

d 33

per

cent

.

123

TRAD

E PO

LIC

IES

– Im

port

mea

sure

s -

non-

tariff

Viet

Nam

, Ind

iaM

arch

Gro

undn

uts

In M

arch

201

7, c

iting

phy

tosa

nita

ry c

once

rns,

the

Gov

ernm

ent o

f Vie

t Nam

tem

pora

rily b

anne

d th

e im

porta

tion

of g

roun

dnut

s an

d ot

her a

gric

ultu

ral p

rodu

cts

from

Indi

a. S

ubse

quen

tly, I

ndia

su

spen

ded

impo

rts o

f a n

umbe

r of a

gric

ultu

ral p

rodu

cts

from

Vie

t Nam

, als

o on

phy

tosa

nita

ry

grou

nds.

Eve

ntua

lly, b

oth

coun

tries

lifte

d th

eir t

empo

rary

ban

s, re

porti

ng th

at th

e ph

ytos

anita

ry

issu

es h

ad b

een

reso

lved

.

124

TRAD

E PO

LIC

IES

– Im

port

mea

sure

s -

non-

tariff

Zam

bia

Mar

chEd

ible

oils

Repo

rtedl

y, in

Feb

ruar

y 20

17, g

over

nmen

t offi

cial

s an

noun

ced

the

rest

rictio

n of

impo

rts o

f re

fined

, pac

ked

and

bottl

ed e

dibl

e oi

ls in

to th

e co

untry

, add

ing

that

the

mea

sure

was

mea

nt

to p

rote

ct d

omes

tic re

finer

s an

d st

reng

then

the

mar

ket f

or lo

cally

pro

duce

d co

okin

g oi

ls.

26 Oilcrops complex: Policy changes and industry measures - Annual compendium 2017

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

125

TRAD

E PO

LIC

IES

– Im

port

mea

sure

s -

non-

tariff

Zim

babw

eSe

ptem

ber

Soyb

ean

Acco

rdin

g to

med

ia re

ports

, the

Gov

ernm

ent o

f Zim

babw

e ha

s lif

ted

a tw

o-an

d-a-

half

mon

th

old

ban

on s

oybe

an im

ports

, in

an e

ffort

to e

nsur

e ad

equa

te s

uppl

ies

of c

ooki

ng o

il in

the

coun

try.

126

TRAD

E PO

LIC

IES

– Im

port

mea

sure

s -

tariff

s &

levie

s

Ecua

dor

Janu

ary

Soyb

ean

mea

l Ec

uado

r dec

ided

to e

xten

d its

cur

rent

tariff

and

dut

y ex

empt

ions

for s

oybe

an m

eal i

mpo

rts

from

all

orig

ins

until

31

Dece

mbe

r 20

19. A

ccor

ding

to

mar

ket

expe

rts, t

he e

xem

ptio

n w

ill ke

ep im

ports

from

the

Uni

ted

Stat

es –

Ecu

ador

’s pr

inci

pal s

uppl

ier –

com

petit

ive

com

pare

d to

thos

e fro

m B

oliv

ia (o

ne o

f Ecu

ador

’s An

dean

Com

mun

ity p

artn

ers)

and

oth

er M

ERC

OSU

R co

untri

es. W

ithou

t the

exe

mpt

ion,

soy

mea

l impo

rts w

ould

attr

act a

15

perc

ent a

d va

lore

m ta

x pl

us th

e An

dean

Pric

e Ba

nd’s

varia

ble

levy

, cur

rent

ly s

et a

t 21

perc

ent.

127

TRAD

E PO

LIC

IES

– Im

port

mea

sure

s -

tariff

s &

levie

s

Indi

aM

arch

Sunfl

ower

see

dTh

e G

over

nmen

t of I

ndia

ann

ounc

ed a

tem

pora

ry c

ut in

the

impo

rt du

ty o

n su

nflow

er s

eed.

Fr

om 1

Apr

il to

30

Sept

embe

r 20

17,

the

ordi

nary

30

perc

ent

duty

has

bee

n re

plac

ed b

y a

10 p

erce

nt ta

riff. T

he c

ount

ry’s

proc

essi

ng in

dust

ry, w

hich

is s

uffer

ing

for a

low

cap

acity

ut

ilizat

ion

rate

, had

bee

n ca

lling

for a

tariff

cut

from

a lo

ng ti

me.

The

mea

sure

is e

xpec

ted

to

rais

e In

dia’

s su

nflow

erse

ed im

ports

and

cru

shin

g.

128

TRAD

E PO

LIC

IES

– Im

port

mea

sure

s -

tariff

s &

levie

s

Indi

aAu

gust

Vege

tabl

e oi

lsIn

Indi

a, th

e w

orld

’s to

p bu

yer o

f veg

etab

le o

ils, i

mpo

rt du

ties

on s

elec

ted

crud

e an

d re

fined

oi

ls h

ave

been

rais

ed to

pro

tect

loca

l far

mer

s fro

m lo

w-p

riced

impo

rts a

nd th

ereb

y en

cour

age

dom

estic

oils

eed

prod

uctio

n. R

epor

tedl

y, th

e co

ncur

renc

e of

cop

ious

impo

rts w

ith a

bum

per

dom

estic

cro

p le

d to

sto

ck s

urge

s an

d sh

arp

pric

e fa

lls. T

he im

port

levi

es fo

r cr

ude

palm

oi

l, re

fined

pal

m o

il an

d cr

ude

soyb

ean

oil –

hav

e be

en ra

ised

to, r

espe

ctiv

ely,

15 p

erce

nt,

25 p

erce

nt a

nd 1

7.5

perc

ent (

up fr

om, r

espe

ctiv

ely,

7.5,

15

and

12.5

per

cent

). By

wid

enin

g th

e im

port

duty

diff

eren

tial b

etw

een

crud

e an

d re

fined

pal

m o

il – fr

om 7

.5 p

erce

nt to

10

perc

ent –

th

e G

over

nmen

t als

o ai

ms

to a

ssis

t dom

estic

oil

proc

esso

rs, w

ho fi

nd it

incr

easi

ngly

diffi

cult

to c

ompe

te w

ith im

ports

of l

ow-p

riced

refin

ed o

ils.

129

TRAD

E PO

LIC

IES

– Im

port

mea

sure

s -

tariff

s &

levie

s

Indi

aN

ovem

ber

Edib

le o

ils,

soyb

ean

In a

n eff

ort t

o cu

rb e

dibl

e oi

l im

ports

and

lift

dom

estic

pric

es in

sup

port

of lo

cal f

arm

ers

and

refin

ers,

the

Gov

ernm

ent r

aise

d im

port

tariff

s fo

r veg

etab

le o

ils a

nd s

oybe

ans

to th

e hi

ghes

t le

vel i

n m

ore

than

a d

ecad

e. C

onsi

derin

g th

at In

dia

is th

e w

orld

’s to

p im

porte

r of v

eget

able

oi

ls, t

he ta

riff h

ike

coul

d aff

ect w

orld

mar

kets

. The

dut

y in

crea

ses

for c

rude

and

refin

ed p

alm

, so

y, su

nflow

er a

nd ra

pese

ed o

il ra

nged

bet

wee

n 60

and

100

per

cent

. Ind

ian

prod

ucer

s ha

d be

en c

allin

g fo

r in

crea

sed

impo

rt re

stric

tions

for

sev

eral

mon

ths.

With

loca

l cru

sher

s an

d re

finer

s fa

cing

gro

win

g co

mpe

titio

n fro

m lo

w-p

riced

impo

rts, d

omes

tic o

ilsee

d pr

ices

had

dr

oppe

d be

low

min

imum

sup

port

pric

e le

vels

– n

otw

ithst

andi

ng a

firs

t, m

odes

t inc

reas

e in

im

port

dutie

s ea

rlier

this

yea

r (se

e M

PPU

Sep

.’17)

. The

late

st d

uty

hike

is e

xpec

ted

to i)

driv

e up

dom

estic

edi

ble

oil p

rices

, thu

s st

imul

atin

g lo

cal o

ilsee

d cr

ushi

ng, a

nd ii

) sup

port

loca

l oi

lcro

p pr

ices

, pr

omot

ing

farm

er s

ellin

g. W

ith r

egar

d to

tra

de,

expe

rts e

xpec

t a

rela

tivel

y sh

ort-l

ived

dro

p in

veg

etab

le o

il im

ports

, giv

en In

dia’

s st

eady

dem

and

expa

nsio

n. O

n th

e ot

her h

and,

the

pric

e co

mpe

titiv

enes

s of

Indi

an o

ilmea

ls c

ould

impr

ove,

enc

oura

ging

exp

ort

sale

s.

130

TRAD

E PO

LIC

IES

– Im

port

mea

sure

s -

tariff

s &

levie

s

Sri L

anka

Mar

chC

ooki

ng o

ilIn

Sri

Lank

a, fo

reca

sts

of a

mar

ked

drop

in d

omes

tic c

ocon

ut p

rodu

ctio

n ha

ve d

riven

up

the

reta

il pr

ices

of c

ocon

ut o

il an

d ot

her c

ooki

ng o

ils. C

once

rned

abo

ut th

e re

sulti

ng h

ards

hip

for

cons

umer

s, th

e go

vern

men

t app

rove

d th

e im

porta

tion

of 4

0 00

0 to

nnes

of c

ocon

ut o

il an

d de

cide

d to

low

er th

e sp

ecia

l com

mod

ity le

vy c

harg

ed o

n im

porte

d ve

geta

bles

oils

. For

co

conu

t oil,

pal

m k

erne

l oil

and

refin

ed p

alm

oil

the

duty

has

bee

n re

duce

d fro

m L

KR 1

50/k

g to

LKR

130

/kg

(resp

ectiv

ely

99 a

nd 8

5 U

S ce

nts)

, whi

le fo

r cru

de c

ocon

ut a

nd p

alm

oil

the

duty

has

bee

n ad

just

ed fr

om L

KR 1

30/k

g to

LKR

110

/kg

(85

and

72 U

S ce

nts)

.

Oilcrops complex: Policy changes and industry measures - Annual compendium 2017 27

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

131

TRAD

E PO

LIC

IES

– Im

port

mea

sure

s -

tariff

s &

levie

s

Turk

eyM

arch

Sunfl

ower

oil/

mea

lAc

cord

ing

to in

dust

ry s

ourc

es, i

mpo

rt lic

ense

s is

sued

by

the

Turk

ish

Gov

ernm

ent n

o lo

nger

in

clud

e th

e Ru

ssia

n Fe

dera

tion

in a

list

of a

ccep

ted

tax-

free

orig

ins

for a

gric

ultu

ral p

rodu

cts,

in

clud

ing

whe

at, m

aize

and

sun

flow

er o

il and

sun

flow

er m

eal –

a c

ircum

stan

ce im

plyi

ng th

at a

pr

ohib

itive

tariff

of 1

30 p

erce

nt w

ould

be

appl

ied

to s

uppl

ies

from

Rus

sia.

Whi

le g

over

nmen

t offi

cial

s un

ders

core

d th

at n

o su

pplie

r ha

d be

en b

anne

d fro

m e

xpor

ting

to T

urke

y, Tu

rkey

’s pu

rcha

ses

of th

e co

ncer

ned

prod

ucts

from

Rus

sia

have

effe

ctiv

ely

com

e to

a h

alt.

132

TRAD

E PO

LIC

IES

– Im

port

mea

sure

s -

tariff

s &

levie

s

Turk

eyM

aySu

nflow

er o

il/m

eal

Turk

ey re

adm

itted

the

Russ

ian

Fede

ratio

n to

its

list o

f acc

epte

d im

port

tax-

free

orig

ins

for

agric

ultu

ral p

rodu

cts

incl

udin

g su

nflow

er o

il an

d su

nflow

er m

eal.

The

Russ

ian

Fede

ratio

n ha

d be

en s

uspe

nded

from

the

list

last

Mar

ch, e

ntai

ling

that

its

ship

men

ts t

o Tu

rkey

face

d pr

ohib

itive

tariff

s (s

ee M

PPU

Apr

.’17)

.

133

TRAD

E PO

LIC

IES

– Ex

port

mea

sure

s - t

ariff

& no

n-ta

riff

Arge

ntin

aN

ovem

ber

Gra

ins,

oils

eeds

Gov

ernm

ent

offici

als

anno

unce

d a

30 p

erce

nt c

ut in

doc

king

ser

vice

fee

s in

the

por

t of

Ro

sario

– th

e po

rt th

at a

ccou

nts

for a

bout

80

perc

ent o

f the

cou

ntry

’s ag

ricul

tura

l exp

orts

. Th

e m

easu

re is

aim

ed a

t red

ucin

g th

e co

sts

of e

xpor

ting

grai

ns. R

epor

tedl

y, do

ckin

g fe

es

repr

esen

t abo

ut 3

0 pe

rcen

t of t

otal

por

t exp

ense

s in

curre

d by

exp

orte

rs.

134

TRAD

E PO

LIC

IES

– Ex

port

mea

sure

s - t

ariff

& no

n-ta

riff

Boliv

iaM

aySo

ybea

nTh

e Bo

livia

n G

over

nmen

t rai

sed

the

coun

try’s

annu

al so

ybea

n ex

port

quot

a to

400

000

tonn

es,

in a

bid

to p

rom

ote

fore

ign

sale

s w

hile

con

tinui

ng to

gua

rant

ee th

at d

omes

tic c

onsu

mpt

ion

requ

irem

ents

are

met

.

135

TRAD

E PO

LIC

IES

– Ex

port

mea

sure

s - t

ariff

& no

n-ta

riff

Indi

aM

arch

Edib

le o

ilW

ith a

vie

w t

o bo

ost

ship

men

ts a

nd p

rom

ote

dom

estic

pro

cess

ing

of p

rem

ium

veg

etab

le

oils

, on

27 M

arch

, the

Gov

ernm

ent o

f Ind

ia li

fted

a ba

n on

bul

k ex

ports

of s

elec

ted

edib

le

oils

, not

ably

gro

undn

ut, s

esam

e an

d so

ybea

n oi

l. Th

e m

easu

res

will

likel

y be

nefit

in p

artic

ular

gr

ound

nut p

rodu

cers

and

cru

sher

s in

Guj

arat

Sta

te, w

here

a re

cord

har

vest

has

driv

en d

own

loca

l pric

es. I

ndia

ban

ned

bulk

exp

orts

in 2

008,

whe

n th

e sh

are

of th

e co

untry

’s co

nsum

ptio

n m

et t

hrou

gh im

ports

sta

rted

risin

g sh

arpl

y. Si

nce

then

, th

e go

vern

men

t on

ly a

llow

ed t

he

expo

rtatio

n of

edi

ble

oils

in b

rand

ed c

onsu

mer

pac

ks o

f up

to

5 kg

– s

ubje

ct t

o vo

lum

e lim

itatio

ns a

nd m

inim

um p

rices

.

136

TRAD

E PO

LIC

IES

– Ex

port

mea

sure

s - t

ariff

& no

n-ta

riff

Indo

nesi

aFe

brua

ryPa

lm o

ilIn

Feb

ruar

y, In

done

sia

will

rais

e its

exp

ort t

ax o

n cr

ude

palm

oil

ship

men

ts to

USD

18

per

tonn

e (c

ompa

red

to U

SD 3

in J

anua

ry) –

th

e hi

ghes

t ra

te s

ince

the

cou

ntry

cha

nged

the

du

ty fr

om a

per

cent

age

rate

to

a do

llar

syst

em in

201

5 (s

ee M

PPU

Aug

.’15)

. The

six

-fold

in

crea

se h

as b

een

trigg

ered

by

the

hike

in th

e go

vern

men

t’s b

ench

mar

k pr

ice

for p

alm

oil

to

USD

816

per

tonn

e. T

he ta

x ris

e co

uld

affec

t the

com

petit

iven

ess

of In

done

sia’

s ex

ports

and

en

cour

age

prod

ucer

s to

rai

se s

ales

to

dom

estic

buy

ers,

esp

ecia

lly t

he b

iodi

esel

indu

stry

, in

dust

ry s

ourc

es s

aid.

137

TRAD

E PO

LIC

IES

– Ex

port

mea

sure

s - t

ariff

& no

n-ta

riff

Indo

nesi

aM

arch

Palm

oil

In M

arch

201

7, In

done

sia’

s var

iabl

e ta

x on

palm

oil e

xpor

ts re

mai

ned

unch

ange

d at

USD

18

per

tonn

e, r

eflec

ting

an o

nly

mar

gina

l in

crea

se i

n th

e go

vern

men

t’s p

alm

oil

refe

renc

e pr

ice

betw

een

Mar

ch a

nd F

ebru

ary

2017

. For

Apr

il, th

e ex

port

tax

has

been

low

ered

to U

SD 3

per

to

nne,

refle

ctin

g a

drop

in th

e ba

se p

rice.

138

TRAD

E PO

LIC

IES

– Ex

port

mea

sure

s - t

ariff

& no

n-ta

riff

Indo

nesi

aM

ayPa

lm o

il Af

ter s

tand

ing

at U

SD 1

8 pe

r ton

ne in

Feb

ruar

y an

d M

arch

, Ind

ones

ia’s

expo

rt ta

x on

cru

de

palm

oil

ship

men

ts w

as lo

wer

ed to

USD

3 p

er to

nne

in A

pril

and

even

tual

ly s

uspe

nded

in

May

. The

suc

cess

ive

cuts

wer

e in

line

with

the

tax’

slid

ing

regi

me

and

refle

ct th

e de

clin

e in

th

e co

mm

odity

’s w

orld

pric

e (a

nd h

ence

in th

e offi

cial

ben

chm

ark

pric

e us

ed to

det

erm

ine

the

tax

rate

).

28 Oilcrops complex: Policy changes and industry measures - Annual compendium 2017

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

139

TRAD

E PO

LIC

IES

– Ex

port

mea

sure

s - t

ariff

& no

n-ta

riff

Indo

nesi

aJu

nePa

lm o

il In

Indo

nesi

a, th

e ex

port

tax

on c

rude

pal

m o

il ha

s be

en s

et a

t zer

o fo

r bot

h Ju

ne a

nd J

uly,

as

the

com

mod

ity’s

refe

renc

e pr

ice

rem

aine

d be

low

the

thre

shol

d th

at w

ould

trig

ger t

axat

ion.

140

TRAD

E PO

LIC

IES

– Ex

port

mea

sure

s - t

ariff

& no

n-ta

riff

Indo

nesi

aJu

lyPa

lm o

ilIn

done

sia

kept

the

expo

rt ta

x on

crud

e pa

lm o

il at z

ero

in A

ugus

t, as

the

com

mod

ity’s

refe

renc

e pr

ice

rem

aine

d be

low

the

thre

shol

d th

at tr

igge

rs ta

xatio

n.

141

TRAD

E PO

LIC

IES

– Ex

port

mea

sure

s - t

ariff

& no

n-ta

riff

Indo

nesi

aAu

gust

Palm

oil

In S

epte

mbe

r 201

7, In

done

sia’

s sl

idin

g ex

port

tax

on c

rude

pal

m o

il w

ill st

ay a

t zer

o (fo

r the

fif

th c

onse

cutiv

e m

onth

), as

the

com

mod

ity’s

refe

renc

e pr

ice

rem

aine

d be

low

the

thre

shol

d th

at tr

igge

rs ta

xatio

n.

142

TRAD

E PO

LIC

IES

– Ex

port

mea

sure

s - t

ariff

& no

n-ta

riff

Indo

nesi

aSe

ptem

ber

Palm

oil

In O

ctob

er 2

017,

Indo

nesi

a’s

slid

ing

expo

rt ta

x on

cru

de p

alm

oil w

ill st

ay a

t zer

o (fo

r the

six

th

cons

ecut

ive

mon

th),

as th

e co

mm

odity

’s re

fere

nce

pric

e re

mai

ned

belo

w th

e th

resh

old

that

tri

gger

s ta

xatio

n.

143

TRAD

E PO

LIC

IES

– Ex

port

mea

sure

s - t

ariff

& no

n-ta

riff

Indo

nesi

aN

ovem

ber

Palm

oil

In N

ovem

ber a

nd D

ecem

ber 2

017,

Indo

nesi

a’s

slid

ing

expo

rt ta

x on

cru

de p

alm

oil

stay

ed

at z

ero.

For

eig

ht m

onth

s in

suc

cess

ion,

Ind

ones

ia’s

refe

renc

e pr

ice

rem

aine

d be

low

the

th

resh

old

that

trig

gers

taxa

tion.

144

TRAD

E PO

LIC

IES

– Ex

port

mea

sure

s - t

ariff

& no

n-ta

riff

Mal

aysi

aFe

brua

ryPa

lm o

ilM

alay

sia

rais

ed it

s pa

lm o

il ex

port

duty

for F

ebru

ary

to 7

.5 p

erce

nt –

the

four

th c

onse

cutiv

e in

crea

se s

ince

Aug

ust 2

016,

als

o re

flect

ing

an in

crea

se in

the

rele

vant

refe

renc

e pr

ice

(see

M

PPU

Jan

.’17)

.

145

TRAD

E PO

LIC

IES

– Ex

port

mea

sure

s - t

ariff

& no

n-ta

riff

Mal

aysi

aM

arch

Palm

oil

Mal

aysi

a’s

slid

ing

expo

rt ta

x fo

r pa

lm o

il ha

s be

en r

aise

d fro

m 7

.5 p

erce

nt to

8 p

erce

nt in

M

arch

(mirr

orin

g an

incr

ease

in th

e go

vern

men

t’s b

ench

mar

k pr

ice)

, whe

reas

, in

April

, the

tax

has

been

bro

ught

bac

k to

7.5

per

cent

(fol

low

ing

a dr

op in

the

refe

renc

e pr

ice)

.

146

TRAD

E PO

LIC

IES

– Ex

port

mea

sure

s - t

ariff

& no

n-ta

riff

Mal

aysi

aM

arch

Palm

oil

Acco

rdin

g to

gov

ernm

ent

offici

als,

Mal

aysi

a is

con

side

ring

alig

ning

the

cou

ntry

’s va

riabl

e ex

port

duty

for

palm

oil

with

tha

t of

Indo

nesi

a. A

llege

dly,

diffe

renc

es in

the

dut

y sc

hem

es

of th

e tw

o co

untri

es re

sulte

d in

Mal

aysi

a lo

sing

glo

bal m

arke

t sha

re, p

artic

ular

ly re

gard

ing

trade

in re

fined

pal

m o

il. R

epor

tedl

y, un

der t

he p

rese

nt d

uty

stru

ctur

e, In

done

sia

is a

ble

to s

ell

refin

ed p

alm

oil a

t USD

30–

40 p

er to

nne

less

than

Mal

aysi

a. T

here

fore

, Mal

aysi

a w

ould

like

to

expl

ore

the

poss

ibilit

y of

hav

ing

a co

mm

on, m

utua

lly b

enefi

cial

tax

regi

me.

The

issu

e co

uld

be

revi

ewed

at a

futu

re m

eetin

g of

the

Cou

ncil

of P

alm

Oil

Prod

ucin

g C

ount

ries

(CPO

PC).

147

TRAD

E PO

LIC

IES

– Ex

port

mea

sure

s - t

ariff

& no

n-ta

riff

Mal

aysi

aM

ayPa

lm o

il Af

ter s

tand

ing

at 8

per

cent

in F

ebru

ary

and

Mar

ch, M

alay

sia’

s ex

port

tax

on c

rude

pal

m o

il sh

ipm

ents

has

bee

n lo

wer

ed th

ree

times

, mirr

orin

g th

e gr

adua

l dec

line

in th

e co

mm

odity

’s w

orld

pric

e (a

nd h

ence

in th

e offi

cial

ben

chm

ark

pric

e us

ed to

det

erm

ine

the

slid

ing

tax

rate

). In

Apr

il, M

ay a

nd J

une

2017

, the

exp

ort t

ax s

tood

at,

resp

ectiv

ely,

7.5

perc

ent,

7 pe

rcen

t and

6

perc

ent.

148

TRAD

E PO

LIC

IES

– Ex

port

mea

sure

s - t

ariff

& no

n-ta

riff

Mal

aysi

aJu

nePa

lm o

il In

Mal

aysi

a, th

e va

riabl

e ta

x fo

r Jul

y ha

s be

en ra

ised

to 6

.5 p

erce

nt (c

ompa

red

to 6

per

cent

in

June

), m

irror

ing

a sm

all i

ncre

ase

in th

e re

leva

nt b

ench

mar

k pr

ice

for c

rude

pal

m o

il.

149

TRAD

E PO

LIC

IES

– Ex

port

mea

sure

s - t

ariff

& no

n-ta

riff

Mal

aysi

aJu

lyPa

lm o

ilIn

Mal

aysi

a, t

he v

aria

ble

tax

for

Augu

st h

as b

een

low

ered

to

5.5

perc

ent

(com

pare

d w

ith

6.5

perc

ent i

n Ju

ly),

mirr

orin

g a

drop

in th

e re

leva

nt b

ench

mar

k pr

ice

for c

rude

pal

m o

il.

Oilcrops complex: Policy changes and industry measures - Annual compendium 2017 29

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

150

TRAD

E PO

LIC

IES

– Ex

port

mea

sure

s - t

ariff

& no

n-ta

riff

Mal

aysi

aAu

gust

Palm

oil

In M

alay

sia,

the

varia

ble

tax

for S

epte

mbe

r rem

ains

unc

hang

ed a

t 5.5

per

cent

, as

the

rele

vant

be

nchm

ark

pric

e re

mai

ned

virtu

ally

unc

hang

ed c

ompa

red

with

the

prev

ious

mon

th’s

leve

l.

151

TRAD

E PO

LIC

IES

– Ex

port

mea

sure

s - t

ariff

& no

n-ta

riff

Mal

aysi

aSe

ptem

ber

Palm

oil

In M

alay

sia,

the

varia

ble

tax

for O

ctob

er w

ill be

rais

ed to

6 p

erce

nt (u

p fro

m 5

.5 p

erce

nt in

the

prev

ious

mon

th),

refle

ctin

g an

incr

ease

in th

e re

leva

nt b

ench

mar

k pr

ice.

152

TRAD

E PO

LIC

IES

– Ex

port

mea

sure

s - t

ariff

& no

n-ta

riff

Mal

aysi

aN

ovem

ber

Palm

oil

In M

alay

sia,

the

varia

ble

expo

rt ta

x fo

r Nov

embe

r was

rais

ed to

6.5

per

cent

(up

from

6 p

erce

nt

in O

ctob

er)

and

then

bro

ught

bac

k to

6 p

erce

nt i

n De

cem

ber,

mirr

orin

g co

rresp

ondi

ng

mov

emen

ts in

the

rele

vant

ben

chm

ark

pric

e.

153

TRAD

E PO

LIC

IES

– Ex

port

mea

sure

s - t

ariff

& no

n-ta

riff

Mal

aysi

aDe

cem

ber

Palm

oil

Mal

aysi

a’s

slid

ing

expo

rt du

ty f

or J

anua

ry 2

018

has

been

set

at

5.5

perc

ent,

dow

n fro

m

6 pe

rcen

t in

Dece

mbe

r. Th

e do

wnw

ard

corre

ctio

n re

flect

s a

decr

ease

in th

e re

leva

nt m

arke

t re

fere

nce

pric

e.

154

TRAD

E PO

LIC

IES

– Ex

port

mea

sure

s - t

ariff

& no

n-ta

riff

Para

guay

June

Soyb

ean

Para

guay

’s Lo

wer

and

Upp

er H

ouse

app

rove

d a

bill

intro

duci

ng a

10

perc

ent t

ax o

n so

ybea

n ex

ports

. Gov

ernm

ent o

ffici

als

said

that

Par

agua

y’s P

resi

dent

wou

ld li

kely

vet

o th

e m

easu

re

(as

done

with

a s

imila

r pro

posa

l bac

k in

201

3 –

(see

MPP

U N

ov.’1

3), c

iting

con

cern

s th

at th

e pr

opos

ed ta

x w

ould

hur

t sm

all a

nd m

ediu

m-s

ized

farm

s. A

s a

subs

titut

e, to

incr

ease

sta

te

reve

nue,

the

Gov

ernm

ent

prop

osed

to

rais

e th

e va

lue-

adde

d ta

x on

agr

icul

tura

l pro

duct

s.

Repo

rtedl

y, fa

rmer

s ha

ve p

ut th

eir 2

017/

18 p

lant

ing

deci

sion

s on

hol

d as

, in

case

the

expo

rt ta

x w

as a

ppro

ved,

soy

bean

pla

ntin

gs c

ould

be

dow

nsize

d.

155

TRAD

E PO

LIC

IES

– Ex

port

mea

sure

s - t

ariff

& no

n-ta

riff

Ukr

aine

Dece

mbe

rSo

ybea

nO

n 7

Dece

mbe

r 201

7, th

e U

krai

nian

Par

liam

ent v

oted

to lif

t the

exi

stin

g va

lue

adde

d ta

x re

fund

on

exp

orts

of s

oy, s

unflo

wer

and

rape

seed

with

effe

ct fr

om 1

Mar

ch 2

018.

Sub

sequ

ently

, the

Pa

rliam

ent a

gree

d to

sof

ten

the

mea

sure

: bas

ed o

n th

e la

test

am

endm

ents

, the

tax

refu

nd

for s

unflo

wer

seed

exp

orts

will

rem

ain

in p

lace

, whi

le th

e re

fund

s fo

r rap

esee

d an

d so

ybea

n sh

ipm

ents

will

only

be

susp

ende

d fo

r a lim

ited

perio

d, n

amel

y fro

m 1

Sep

tem

ber 2

018

to e

nd

2021

for s

oybe

ans

and

from

1 J

anua

ry 2

020

to e

nd 2

021

for r

apes

eed.

The

bul

k of

Ukr

aine

’s ra

pe a

nd s

oy p

rodu

ctio

n is

exp

orte

d in

the

form

of s

eeds

, as

oppo

sed

to s

unflo

wer

, whi

ch

is c

rush

ed lo

cally

and

sub

sequ

ently

exp

orte

d as

oil

and

mea

l. Th

e te

mpo

rary

sus

pens

ion

of

refu

nds

for r

ape

and

soy

coul

d w

eigh

on

the

crop

s’ d

omes

tic p

rices

, pos

sibl

y le

adin

g to

a

drop

in p

lant

ings

, whi

le U

krai

ne’s

crus

hers

cou

ld b

enefi

t fro

m h

ighe

r see

d su

pplie

s.

156

TRAD

E PO

LIC

IES

– Tr

ade

disp

utes

Chi

na, U

nite

d St

ates

Janu

ary

Dist

illers

drie

d gr

ains

The

Chi

nese

Gov

ernm

ent r

aise

d th

e an

ti-du

mpi

ng a

nd a

nti-s

ubsi

dy d

utie

s im

pose

d on

the

impo

rtatio

n of

dis

tille

rs d

ried

grai

ns (D

DGs)

from

the

Uni

ted

Stat

es b

ack

in S

epte

mbe

r 201

6 an

d ex

tend

ed th

e re

talia

tory

mea

sure

unt

il 202

2 –

a de

cisi

on e

xpec

ted

to in

crea

se fe

edm

illers

’ de

man

d fo

r dom

estic

ally

pro

duce

d DD

Gs,

mai

ze a

nd s

oym

eal.

157

TRAD

E PO

LIC

IES

– Tr

ade

disp

utes

Euro

pean

Uni

on,

Indo

nesi

aJa

nuar

yPa

lm o

il fa

tty

alco

hols

In D

ecem

ber 2

016,

a p

anel

est

ablis

hed

by th

e W

TO d

ispu

te s

ettle

men

t bod

y (D

SB) i

ssue

d a

repo

rt on

the

anti-

dum

ping

mea

sure

s ta

ken

by th

e Eu

rope

an U

nion

aga

inst

impo

rts o

f cer

tain

fa

tty a

lcoh

ols

(der

ived

from

pal

m o

il) fro

m In

done

sia

(see

also

MPP

U M

ay’1

4). T

he P

anel

, w

hich

was

set

up

at th

e re

ques

t of I

ndon

esia

, fou

nd th

at th

e EU

’s ex

port

pric

e co

mpa

rison

s w

ere

not i

ncon

sist

ent w

ith e

xist

ing

WTO

regu

latio

ns, b

ut ru

led

that

the

EU fa

iled

to d

iscl

ose

the

resu

lts o

f its

on-

the-

spot

ver

ifica

tions

of I

ndon

esia

n pr

oduc

ers.

The

pan

el re

com

men

ded

that

the

EU

brin

g its

mea

sure

s in

to c

onfo

rmity

with

its

oblig

atio

ns u

nder

the

WTO

ant

i-du

mpi

ng A

gree

men

t.

30 Oilcrops complex: Policy changes and industry measures - Annual compendium 2017

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

158

TRAD

E PO

LIC

IES

– Tr

ade

disp

utes

Euro

pean

Uni

on,

Arge

ntin

a,

Indo

nesi

a

July

Biod

iese

lIn

line

with

ple

dges

to b

ring

the

EU’s

anti-

dum

ping

dut

ies

on b

iodi

esel

impo

rts fr

om A

rgen

tina

and

Indo

nesi

a in

to c

onfo

rmity

with

WTO

rule

s (s

ee M

PPU

Jan

’17)

, the

EU

Com

mis

sion

has

ta

bled

a p

ropo

sal f

or lo

wer

ing

the

dutie

s th

at a

re in

pla

ce s

ince

Nov

embe

r 201

3. U

nder

the

prop

osal

, the

dut

ies

on im

ports

from

Arg

entin

a w

ould

be

redu

ced

from

aro

und

25 p

erce

nt to

9

perc

ent,

and

thos

e on

Indo

nesi

an p

rodu

ce fr

om a

bout

19

perc

ent t

o 5

perc

ent,

acco

rdin

g to

med

ia re

ports

. The

EU

’s ag

ricul

ture

and

bio

dies

el lo

bbie

s st

rong

ly c

ritic

ized

the

prop

osal

, ar

guin

g th

at t

heir

sect

ors

wou

ld b

e se

vere

ly im

pact

ed b

y th

e re

duct

ion

in d

utie

s, w

hich

, al

lege

dly,

wou

ld tr

igge

r an

influ

x of

low

-cos

t bio

dies

el fr

om A

rgen

tina

and

Indo

nesi

a in

to th

e bl

oc. T

he C

omm

issi

on d

ecid

ed to

pos

tpon

e th

e fin

al v

ote

on th

e m

atte

r to

Sept

embe

r 201

7.

159

TRAD

E PO

LIC

IES

– Tr

ade

disp

utes

Euro

pean

Uni

on,

Arge

ntin

aAu

gust

Biod

iese

lRe

gard

ing

the

EU’s

com

mitm

ent t

o br

ing

the

bloc

’s an

ti-du

mpi

ng d

utie

s on

bio

dies

el im

ports

fro

m A

rgen

tina

into

con

form

ity w

ith a

rece

nt W

TO ru

ling

(see

MPP

U J

an.&

Aug.

’17)

, the

two

parti

es a

gree

d to

ext

end

the

EU’s

time

limit

for r

emov

ing

or a

lterin

g th

e na

med

tariff

s un

til

28 S

epte

mbe

r 201

7 (a

s op

pose

d to

the

orig

inal

ly a

gree

d up

on d

ate

of 1

0 Au

gust

201

7).

160

TRAD

E PO

LIC

IES

– Tr

ade

disp

utes

Euro

pean

Uni

on,

Arge

ntin

aSe

ptem

ber

Biod

iese

lFo

llow

ing

cons

ulta

tions

with

Mem

ber S

tate

s, th

e Eu

rope

an C

omm

issi

on d

ecid

ed to

redu

ce

the

bloc

’s cu

stom

dut

ies

on b

iodi

esel

impo

rts fr

om A

rgen

tina,

effe

ctiv

e 19

Sep

tem

ber 2

017

(see

also

MPP

U S

ep.’1

7). T

o co

nfor

m w

ith a

rec

ent

WTO

rul

ing,

the

EU

low

ered

its

anti-

dum

ping

dut

ies

to b

etw

een

4.5

perc

ent a

nd 8

.1 p

erce

nt –

as

agai

nst t

he 2

2–25

.7 p

erce

nt

rang

e in

pla

ce s

ince

May

201

3. T

he E

U’s

deci

sion

has

com

e at

a ti

me

whe

n th

e U

nite

d St

ates

ch

ose

to im

plem

ent i

ts o

wn

mea

sure

s to

rest

rict b

iodi

esel

impo

rts fr

om A

rgen

tina

(see

MPP

U

Sep.

’17)

. Acc

ordi

ngly,

Arg

entin

a’s

expo

rt-or

ient

ed b

iodi

esel

indu

stry

wel

com

ed th

e po

ssib

ility

to r

esum

e sh

ipm

ents

to

the

EU m

arke

t. By

con

trast

, fa

rmer

org

aniza

tions

and

bio

dies

el

prod

ucer

s in

the

EU (w

here

bio

dies

el is

mos

tly p

rodu

ced

from

loca

lly g

row

n ra

pese

ed c

rops

) cr

itici

zed

the

redu

ctio

n in

tariff

s an

d th

reat

ened

to a

ppea

l aga

inst

the

Euro

pean

Com

mis

sion

’s de

cisi

on. M

eanw

hile

, the

EU

’s an

ti-du

mpi

ng ta

riffs

on In

done

sian

bio

dies

el, w

hich

wer

e al

so

intro

duce

d in

201

3, w

ill re

mai

n in

pla

ce, c

onsi

derin

g th

at th

ey a

re s

ubje

ct o

f a s

till p

endi

ng,

sepa

rate

cas

e at

the

WTO

(see

MPP

U N

ov.’1

6).

161

TRAD

E PO

LIC

IES

– Tr

ade

disp

utes

Uni

ted

Stat

es,

Arge

ntin

a,

Indo

nesi

a

Mar

chBi

odie

sel

Cla

imin

g th

at A

rgen

tina

and

Indo

nesi

a ar

e du

mpi

ng b

iodi

esel

ont

o th

e U

S m

arke

t, th

e U

S bi

odie

sel i

ndus

try fi

led

an a

nti-d

umpi

ng a

nd c

ount

erva

iling

duty

pet

ition

with

the

Uni

ted

Stat

es G

over

nmen

t. Ac

cord

ing

to t

he p

etiti

on,

Arge

ntin

e an

d In

done

sian

pro

duce

rs a

re

sellin

g bi

odie

sel i

nto

the

US

mar

ket a

t pric

es s

ubst

antia

lly b

elow

thei

r cos

ts o

f pro

duct

ion.

Th

e pe

titio

n al

so a

llege

s th

at A

rgen

tine

and

Indo

nesi

an p

rodu

cers

enj

oy tr

ade

and

mar

ket

dist

ortin

g su

bsid

ies.

US

biod

iese

l im

ports

from

the

tw

o co

untri

es a

re s

aid

to h

ave

surg

ed

in r

ecen

t ye

ars,

tak

ing

mar

ket

shar

e fro

m U

S m

anuf

actu

rers

. Re

porte

dly,

the

Indo

nesi

an

Gov

ernm

ent

has

subm

itted

a c

ompl

aint

to

the

WTO

ove

r th

e U

S in

dust

ry’s

petit

ion,

whi

le

Arge

ntin

e st

ate

offici

als

have

reje

cted

the

US

clai

ms

as u

nfou

nded

.

162

TRAD

E PO

LIC

IES

– Tr

ade

disp

utes

Uni

ted

Stat

es,

Arge

ntin

a,

Indo

nesi

a

May

Biod

iese

lIn

Apr

il, fo

llow

ing

a pe

titio

n fil

ed b

y th

e U

S bi

odie

sel i

ndus

try (s

ee M

PPU

Apr

.’17)

, the

US

Depa

rtmen

t of

Com

mer

ce la

unch

ed p

relim

inar

y in

vest

igat

ions

into

bio

dies

el im

ports

fro

m

Arge

ntin

a an

d In

done

sia

for p

ossi

ble

dum

ping

and

sub

sidi

zatio

n. In

May

, the

US

Inte

rnat

iona

l Tr

ade

Com

mis

sion

(ITC

) det

erm

ined

tha

t th

ere

is e

vide

nce

that

the

US

biod

iese

l ind

ustry

is

hur

t by

suc

h im

ports

, whi

ch, a

llege

dly,

are

subs

idize

d an

d so

ld in

the

Uni

ted

Stat

es a

t le

ss th

an fa

ir va

lue.

Bas

ed o

n th

e C

omm

issi

on’s

affirm

ativ

e de

term

inat

ion,

the

Depa

rtmen

t of

Com

mer

ce is

set

to

purs

ue it

s in

vest

igat

ions

, w

ith p

relim

inar

y co

unte

rvai

ling

and

anti-

dum

ping

dut

y de

term

inat

ions

due

late

r thi

s ye

ar. I

n 20

16, r

ough

ly a

third

of t

he U

S bi

odie

sel

mar

ket

(i.e.

abo

ut 3

.1 m

illion

ton

nes)

was

sup

plie

d by

impo

rted

biod

iese

l. Ar

gent

ina

alon

e ex

porte

d ar

ound

1.5

milli

on to

nnes

of b

iodi

esel

and

rene

wab

le d

iese

l to

the

Uni

ted

Stat

es.

Oilcrops complex: Policy changes and industry measures - Annual compendium 2017 31

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

163

TRAD

E PO

LIC

IES

– Tr

ade

disp

utes

Uni

ted

Stat

es,

Arge

ntin

a,

Indo

nesi

a

June

Biod

iese

lTh

e U

.S. D

epar

tmen

t of C

omm

erce

dec

ided

to e

xten

d its

trad

e in

vest

igat

ions

into

bio

dies

el

impo

rts f

rom

Arg

entin

a an

d In

done

sia

(see

MPP

U J

une’

17),

whi

ch i

mpl

ies

that

any

de

term

inat

ion

of p

relim

inar

y co

unte

rvai

ling

dutie

s an

d an

ti-du

mpi

ng d

utie

s w

ill be

due

by,

resp

ectiv

ely,

22nd

Aug

ust a

nd 2

0th

Oct

ober

(as

oppo

sed

to th

e pr

evio

us d

eadl

ines

of 1

6th

June

and

30t

h Au

gust

).

164

TRAD

E PO

LIC

IES

– Tr

ade

disp

utes

Uni

ted

Stat

es,

Arge

ntin

aJu

lyBi

odie

sel

The

US

biod

iese

l in

dust

ry fi

led

an a

dditi

onal

alle

gatio

n w

ith t

he U

S De

partm

ent

of

Com

mer

ce (D

OC

) cla

imin

g th

at ‘c

ritic

al c

ircum

stan

ces’

exi

st w

ith re

spec

t to

impo

rts o

f low

-co

st b

iodi

esel

fro

m A

rgen

tina.

Bas

ed o

n an

ear

lier

petit

ion,

in A

pril

2017

, DO

C la

unch

ed

prel

imin

ary

inve

stig

atio

ns in

to t

he n

amed

impo

rts fo

r po

ssib

le d

umpi

ng a

nd s

ubsi

diza

tion,

w

ith p

relim

inar

y de

term

inat

ions

due

late

r th

is y

ear

(see

MPP

U J

une’

17).

In p

rinci

ple,

the

‘c

ritic

al c

ircum

stan

ces’

pro

visi

on a

llow

s fo

r th

e im

posi

tion

of c

ount

erva

iling

mea

sure

s pr

ior t

o pr

elim

inar

y de

term

inat

ions

, pos

sibl

y off

erin

g re

lief t

o aff

ecte

d pa

rties

in th

e fo

rm o

f re

troac

tive

dutie

s –

a pr

otec

tion

aim

ed a

t det

errin

g ex

porte

rs fr

om b

oost

ing

ship

men

ts b

efor

e co

unte

rvai

ling

mea

sure

s ar

e in

trodu

ced.

Cla

imin

g th

at s

hipm

ents

of A

rgen

tine

biod

iese

l int

o th

e U

nite

d St

ates

sur

ged

sinc

e th

e in

dust

ry fi

led

its fi

rst p

etiti

on, U

S bi

odie

sel p

rodu

cers

hav

e ta

ken

the

addi

tiona

l ste

p of

invo

king

the

‘crit

ical

circ

umst

ance

s’ c

laus

e.

165

TRAD

E PO

LIC

IES

– Tr

ade

disp

utes

Uni

ted

Stat

es,

Arge

ntin

a,

Indo

nesi

a

Augu

stBi

odie

sel

The

U.S

. Dep

artm

ent o

f Com

mer

ce (D

OC

) ann

ounc

ed a

ffirm

ativ

e pr

elim

inar

y det

erm

inat

ions

in

the

coun

terv

ailin

g du

ty in

vest

igat

ions

rela

ted

to In

done

sian

and

Arg

entin

e ex

ports

of b

iodi

esel

to

the

Uni

ted

Stat

es. D

OC

cla

imed

that

Arg

entin

e an

d In

done

sian

exp

orte

rs re

ceiv

ed su

bsid

ies

of, r

espe

ctiv

ely,

50–6

4 per

cent

and

41–6

8 per

cent

. The

dep

artm

ent a

lso

dete

rmin

ed th

at ‘c

ritic

al

circ

umst

ance

s’ e

xist

in b

oth

case

s, w

hich

allo

ws

for r

etro

activ

e co

llect

ion

of d

utie

s (s

ee a

lso

MPP

U A

ug.’1

7). F

inal

dut

y de

term

inat

ions

are

due

on

7 N

ovem

ber 2

017.

Whi

le D

OC

fina

lizes

its

inve

stig

atio

ns, b

iodi

esel

impo

rters

will

be re

quire

d to

pay

cas

h de

posi

ts o

n pu

rcha

ses

from

Ar

gent

ina

and

Indo

nesi

a ba

sed

on th

e in

dica

ted

subs

idiza

tion

rate

s, g

oing

bac

k to

May

201

7.

As to

the

com

pani

on a

nti-d

umpi

ng in

vest

igat

ions

, pre

limin

ary

dete

rmin

atio

ns a

re e

xpec

ted

in O

ctob

er 2

017.

DO

C’s

initi

al n

otic

e ha

s le

d to

tem

pora

ry s

pike

s in

US

and

inte

rnat

iona

l so

ybea

n oi

l pric

es. E

vide

ntly,

mar

ket p

artic

ipan

ts a

re c

once

rned

that

, in

the

Uni

ted

Stat

es,

dem

and

for d

omes

tical

ly p

rodu

ced

biod

iese

l – w

hich

is m

ainl

y pr

oduc

ed fr

om s

oybe

an o

il –

coul

d in

crea

se o

nce

reta

liato

ry im

port

dutie

s ar

e im

pose

d. A

rgen

tina

wou

ld b

e pa

rticu

larly

aff

ecte

d by

the

envi

sage

d tra

de p

olic

y ch

ange

: in

201

6, U

S-bo

und

expo

rts a

ccou

nted

for

appr

oxim

atel

y 90

per

cent

of A

rgen

tina’

s ov

eral

l bio

dies

el s

ales

, with

impo

rts fr

om A

rgen

tina

repr

esen

ting

two-

third

s of

the

Uni

ted

Stat

es’ t

otal

bio

dies

el p

urch

ases

. Rep

orte

dly,

Arge

ntin

a ha

s off

ered

to

colla

bora

te w

ith t

he U

.S. D

OC

dur

ing

its fi

nal d

uty

dete

rmin

atio

n. T

he t

wo

parti

es m

ay a

lso

cons

ider

the

intro

duct

ion

of ta

riff ra

te q

uota

s, a

ccor

ding

to p

ress

repo

rts.

166

TRAD

E PO

LIC

IES

– Tr

ade

disp

utes

Uni

ted

Stat

es,

Arge

ntin

a,

Indo

nesi

a

Oct

ober

Biod

iese

lIn

Oct

ober

201

7, t

he U

.S.

Com

mer

ce D

epar

tmen

t se

t –

in a

dditi

on t

o th

e pr

elim

inar

y co

unte

rvai

ling

dutie

s im

pose

d ea

rlier

this

yea

r (se

e M

PPU

Sep

.’17)

– p

relim

inar

y an

ti-du

mpi

ng

dutie

s on

impo

rts o

f bi

odie

sel f

rom

Arg

entin

a an

d In

done

sia,

cla

imin

g th

at A

rgen

tine

and

Indo

nesi

an b

iodi

esel

was

sol

d in

the

Uni

ted

Stat

es a

t dum

ping

mar

gins

of,

resp

ectiv

ely,

54–

70 p

erce

nt a

nd 5

1 pe

rcen

t. Th

e De

partm

ent i

s ex

pect

ed to

ann

ounc

e its

fina

l ant

i-dum

ping

de

cisi

on in

Jan

uary

201

8.

32 Oilcrops complex: Policy changes and industry measures - Annual compendium 2017

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

167

TRAD

E PO

LIC

IES

– Tr

ade

disp

utes

Uni

ted

Stat

es,

Arge

ntin

a,

Indo

nesi

a

Nov

embe

rBi

odie

sel

In N

ovem

ber 2

017,

the

Depa

rtmen

t als

o se

t fina

l cou

nter

vailin

g (o

r ant

i-sub

sidy

) dut

ies,

whi

ch

will

rem

ain

in p

lace

for

five

year

s. T

he fi

nal d

utie

s, w

hich

var

y de

pend

ing

on th

e pa

rticu

lar

prod

ucer

/exp

orte

r in

volv

ed, h

ave

been

fixe

d at

71–

72 p

erce

nt fo

r Ar

gent

ine

biod

iese

l and

34

–65

perc

ent f

or In

done

sian

pro

duce

– p

artly

exc

eedi

ng th

e pr

elim

inar

y du

ties

intro

duce

d in

Aug

ust 2

017.

At a

ny ra

te, b

iodi

esel

impo

rts fr

om th

e tw

o co

untri

es c

ame

to a

sta

ndst

ill as

so

on a

s th

e hi

gh p

relim

inar

y co

unte

rvai

ling

dutie

s ca

me

into

effe

ct. F

or th

e fin

al c

ount

erva

iling

dutie

s to

com

e in

to e

ffect

, the

U.S

. Int

erna

tiona

l Tra

de C

omm

issi

on n

eeds

to c

onfir

m th

at th

e im

ports

in q

uest

ion

harm

ed U

.S. p

rodu

cers

– a

dec

isio

n ex

pect

ed to

be

mad

e in

Dec

embe

r 20

17.

168

TRAD

E PO

LIC

IES

– Tr

ade

disp

utes

Uni

ted

Stat

es,

Arge

ntin

a,

Indo

nesi

a

Dece

mbe

rBi

odie

sel

The

U.S

. Int

erna

tiona

l Tra

de C

omm

issi

on fo

und

that

bio

dies

el fr

om A

rgen

tina

and

Indo

nesi

a hu

rt U

S pr

oduc

ers

and

that

bio

dies

el p

rodu

ctio

n in

the

tw

o co

untri

es is

sub

sidi

zed.

The

affi

rmat

ion

allo

ws

the

coun

terv

ailin

g du

ties

set

by t

he U

.S.

Com

mer

ce D

epar

tmen

t la

st

Nov

embe

r to

com

e in

to fo

rce

and

rem

ain

in p

lace

for fi

ve y

ears

(see

MPP

U D

ec.’1

7).

169

TRAD

E PO

LIC

IES

– C

ompr

ehen

sive

trade

ag

reem

ents

Aust

ralia

, Eur

opea

n U

nion

M

ayO

ilsee

ds,

rape

seed

Aust

ralia

and

the

Eur

opea

n U

nion

suc

cess

fully

con

clud

ed a

join

t sc

opin

g ex

erci

se o

n a

futu

re fr

ee t

rade

agr

eem

ent

betw

een

the

two

econ

omie

s. A

ustra

lian

grow

ers’

ass

ocia

tions

w

elco

med

the

new

s as

the

EU p

rovi

des

an im

porta

nt m

arke

t for

Aus

tralia

n oi

lsee

ds, n

otab

ly

rape

seed

. Cur

rent

ly, a

bout

60

perc

ent o

f Aus

tralia

’s ra

pese

ed s

hipm

ents

are

dire

cted

to th

e EU

. It i

s im

porta

nt to

not

e th

at, i

n th

e EU

, Aus

tralia

’s ra

pese

eds

enjo

y a

prem

ium

of u

p to

AU

D 50

per

tonn

e (U

SD 3

8) d

ue to

the

coun

try’s

capa

city

to d

eliv

er n

on-G

M ra

pese

ed.

170

TRAD

E PO

LIC

IES

– C

ompr

ehen

sive

trade

ag

reem

ents

Aust

ralia

, Per

uN

ovem

ber

Rape

seed

Und

er a

rece

ntly

sign

ed fr

ee tr

ade

agre

emen

t bet

wee

n Au

stra

lia a

nd P

eru,

Aus

tralia

n ra

pese

ed

will

be a

llow

ed to

ent

er P

eru

free

of d

uty.

171

TRAD

E PO

LIC

IES

– C

ompr

ehen

sive

trade

ag

reem

ents

Can

ada,

Chi

naM

arch

Rape

seed

The

Can

ola

Cou

ncil

of C

anad

a (th

e in

dust

ry a

ssoc

iatio

n th

at r

epre

sent

s th

e co

untry

’s ra

pese

ed v

alue

cha

in) h

as b

acke

d th

e on

-goi

ng e

xplo

rato

ry d

iscu

ssio

ns b

etw

een

Can

ada

and

Chi

na a

bout

a p

ossi

ble

bila

tera

l tra

de a

gree

men

t, sa

ying

tha

t it

wou

ld c

reat

e jo

bs

and

incr

ease

Can

ada’

s ex

ports

of r

apes

eed

and

rape

seed

pro

duct

s. A

ccor

ding

to a

stu

dy

com

mis

sion

ed b

y th

e C

ounc

il, th

e el

imin

atio

n of

Chi

na’s

impo

rt ta

riffs

coul

d ra

ise

Can

ada’

s ex

ports

of r

ape

seed

, oil

and

mea

l by

CAD

1.2

billi

on a

yea

r (U

SD 0

.9 b

illion

) – w

hich

wou

ld

equa

te t

o 1.

8 m

illion

ton

nes

of r

apes

eed

or a

bout

10

perc

ent

of C

anad

a’s

curre

nt a

nnua

l pr

oduc

tion.

Rep

orte

dly,

Chi

na’s

tariff

on

impo

rted

rape

seed

cur

rent

ly s

tand

s at

9 p

erce

nt,

whi

ch, i

n 20

16, m

ade

impo

rted

rape

seed

abo

ut C

AD 3

2 pe

r ton

ne (U

SD 2

4) m

ore

expa

nsiv

e th

an s

oybe

ans

(whi

ch e

njoy

an

impo

rt du

ty o

f 3 p

erce

nt).

In a

dditi

on, r

esol

ving

spe

cific

non

-ta

riff b

arrie

rs is

sai

d to

be

nece

ssar

y to

take

full

adva

ntag

e of

Chi

na’s

dem

and

(see

MPP

U

Nov

.’16)

. Fur

ther

mor

e, th

ree

rape

seed

var

ietie

s au

thor

ized

in C

anad

a in

201

2 ar

e st

ill to

gai

n ap

prov

al in

Chi

na, i

mpl

ying

that

thei

r com

mer

cial

izatio

n re

mai

ns o

n ho

ld in

Can

ada

– al

lege

dly

ham

perin

g fa

rmer

s’ a

cces

s to

the

late

st s

eed

tech

nolo

gy.

172

TRAD

E PO

LIC

IES

– C

ompr

ehen

sive

trade

ag

reem

ents

Can

ada,

Eur

opea

n U

nion

Sept

embe

rRa

pese

ed o

ilTh

e C

ompr

ehen

sive

Eco

nom

ic a

nd T

rade

Agr

eem

ent (

CET

A) b

etw

een

the

EU a

nd C

anad

a ha

s en

tere

d in

to fo

rce

prov

isio

nally

on

21 S

epte

mbe

r 201

7. C

once

rnin

g oi

lsee

ds, t

he a

gree

men

t’s

impl

emen

tatio

n en

tails

the

elim

inat

ion

– fro

m d

ay o

ne –

of

the

EU’s

tariff

s on

Can

adia

n ra

pese

ed o

il im

ports

(se

e M

PPU

Dec

.’16)

. C

ETA’

s fu

ll an

d de

finiti

ve a

pplic

atio

n re

mai

ns

cont

inge

nt u

pon

ratifi

catio

n by

all

EU M

embe

r Sta

te p

arlia

men

ts.

173

TRAD

E PO

LIC

IES

– C

ompr

ehen

sive

trade

ag

reem

ents

Indo

nesi

a, A

ustra

liaM

arch

Palm

oil

Whi

le In

done

sia

and

Aust

ralia

are

neg

otia

ting

a fre

e tra

de d

eal t

o be

con

clud

ed t

his

year

, In

done

sian

offi

cial

s in

vite

d Au

stra

lia to

rem

ove

tariff

s an

d no

n-ta

riff m

easu

res

for I

ndon

esia

n pr

oduc

ts su

ch a

s pal

m o

il, p

aper

pul

p an

d ot

her w

ood

prod

ucts

. Reg

ardi

ng p

alm

oil,

Aus

tralia

n offi

cial

s in

form

ed th

at n

o tra

de b

arrie

rs w

ere

in p

lace

.

Oilcrops complex: Policy changes and industry measures - Annual compendium 2017 33

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

167

TRAD

E PO

LIC

IES

– Tr

ade

disp

utes

Uni

ted

Stat

es,

Arge

ntin

a,

Indo

nesi

a

Nov

embe

rBi

odie

sel

In N

ovem

ber 2

017,

the

Depa

rtmen

t als

o se

t fina

l cou

nter

vailin

g (o

r ant

i-sub

sidy

) dut

ies,

whi

ch

will

rem

ain

in p

lace

for

five

year

s. T

he fi

nal d

utie

s, w

hich

var

y de

pend

ing

on th

e pa

rticu

lar

prod

ucer

/exp

orte

r in

volv

ed, h

ave

been

fixe

d at

71–

72 p

erce

nt fo

r Ar

gent

ine

biod

iese

l and

34

–65

perc

ent f

or In

done

sian

pro

duce

– p

artly

exc

eedi

ng th

e pr

elim

inar

y du

ties

intro

duce

d in

Aug

ust 2

017.

At a

ny ra

te, b

iodi

esel

impo

rts fr

om th

e tw

o co

untri

es c

ame

to a

sta

ndst

ill as

so

on a

s th

e hi

gh p

relim

inar

y co

unte

rvai

ling

dutie

s ca

me

into

effe

ct. F

or th

e fin

al c

ount

erva

iling

dutie

s to

com

e in

to e

ffect

, the

U.S

. Int

erna

tiona

l Tra

de C

omm

issi

on n

eeds

to c

onfir

m th

at th

e im

ports

in q

uest

ion

harm

ed U

.S. p

rodu

cers

– a

dec

isio

n ex

pect

ed to

be

mad

e in

Dec

embe

r 20

17.

168

TRAD

E PO

LIC

IES

– Tr

ade

disp

utes

Uni

ted

Stat

es,

Arge

ntin

a,

Indo

nesi

a

Dece

mbe

rBi

odie

sel

The

U.S

. Int

erna

tiona

l Tra

de C

omm

issi

on fo

und

that

bio

dies

el fr

om A

rgen

tina

and

Indo

nesi

a hu

rt U

S pr

oduc

ers

and

that

bio

dies

el p

rodu

ctio

n in

the

tw

o co

untri

es is

sub

sidi

zed.

The

affi

rmat

ion

allo

ws

the

coun

terv

ailin

g du

ties

set

by t

he U

.S.

Com

mer

ce D

epar

tmen

t la

st

Nov

embe

r to

com

e in

to fo

rce

and

rem

ain

in p

lace

for fi

ve y

ears

(see

MPP

U D

ec.’1

7).

169

TRAD

E PO

LIC

IES

– C

ompr

ehen

sive

trade

ag

reem

ents

Aust

ralia

, Eur

opea

n U

nion

M

ayO

ilsee

ds,

rape

seed

Aust

ralia

and

the

Eur

opea

n U

nion

suc

cess

fully

con

clud

ed a

join

t sc

opin

g ex

erci

se o

n a

futu

re fr

ee t

rade

agr

eem

ent

betw

een

the

two

econ

omie

s. A

ustra

lian

grow

ers’

ass

ocia

tions

w

elco

med

the

new

s as

the

EU p

rovi

des

an im

porta

nt m

arke

t for

Aus

tralia

n oi

lsee

ds, n

otab

ly

rape

seed

. Cur

rent

ly, a

bout

60

perc

ent o

f Aus

tralia

’s ra

pese

ed s

hipm

ents

are

dire

cted

to th

e EU

. It i

s im

porta

nt to

not

e th

at, i

n th

e EU

, Aus

tralia

’s ra

pese

eds

enjo

y a

prem

ium

of u

p to

AU

D 50

per

tonn

e (U

SD 3

8) d

ue to

the

coun

try’s

capa

city

to d

eliv

er n

on-G

M ra

pese

ed.

170

TRAD

E PO

LIC

IES

– C

ompr

ehen

sive

trade

ag

reem

ents

Aust

ralia

, Per

uN

ovem

ber

Rape

seed

Und

er a

rece

ntly

sign

ed fr

ee tr

ade

agre

emen

t bet

wee

n Au

stra

lia a

nd P

eru,

Aus

tralia

n ra

pese

ed

will

be a

llow

ed to

ent

er P

eru

free

of d

uty.

171

TRAD

E PO

LIC

IES

– C

ompr

ehen

sive

trade

ag

reem

ents

Can

ada,

Chi

naM

arch

Rape

seed

The

Can

ola

Cou

ncil

of C

anad

a (th

e in

dust

ry a

ssoc

iatio

n th

at r

epre

sent

s th

e co

untry

’s ra

pese

ed v

alue

cha

in) h

as b

acke

d th

e on

-goi

ng e

xplo

rato

ry d

iscu

ssio

ns b

etw

een

Can

ada

and

Chi

na a

bout

a p

ossi

ble

bila

tera

l tra

de a

gree

men

t, sa

ying

tha

t it

wou

ld c

reat

e jo

bs

and

incr

ease

Can

ada’

s ex

ports

of r

apes

eed

and

rape

seed

pro

duct

s. A

ccor

ding

to a

stu

dy

com

mis

sion

ed b

y th

e C

ounc

il, th

e el

imin

atio

n of

Chi

na’s

impo

rt ta

riffs

coul

d ra

ise

Can

ada’

s ex

ports

of r

ape

seed

, oil

and

mea

l by

CAD

1.2

billi

on a

yea

r (U

SD 0

.9 b

illion

) – w

hich

wou

ld

equa

te t

o 1.

8 m

illion

ton

nes

of r

apes

eed

or a

bout

10

perc

ent

of C

anad

a’s

curre

nt a

nnua

l pr

oduc

tion.

Rep

orte

dly,

Chi

na’s

tariff

on

impo

rted

rape

seed

cur

rent

ly s

tand

s at

9 p

erce

nt,

whi

ch, i

n 20

16, m

ade

impo

rted

rape

seed

abo

ut C

AD 3

2 pe

r ton

ne (U

SD 2

4) m

ore

expa

nsiv

e th

an s

oybe

ans

(whi

ch e

njoy

an

impo

rt du

ty o

f 3 p

erce

nt).

In a

dditi

on, r

esol

ving

spe

cific

non

-ta

riff b

arrie

rs is

sai

d to

be

nece

ssar

y to

take

full

adva

ntag

e of

Chi

na’s

dem

and

(see

MPP

U

Nov

.’16)

. Fur

ther

mor

e, th

ree

rape

seed

var

ietie

s au

thor

ized

in C

anad

a in

201

2 ar

e st

ill to

gai

n ap

prov

al in

Chi

na, i

mpl

ying

that

thei

r com

mer

cial

izatio

n re

mai

ns o

n ho

ld in

Can

ada

– al

lege

dly

ham

perin

g fa

rmer

s’ a

cces

s to

the

late

st s

eed

tech

nolo

gy.

172

TRAD

E PO

LIC

IES

– C

ompr

ehen

sive

trade

ag

reem

ents

Can

ada,

Eur

opea

n U

nion

Sept

embe

rRa

pese

ed o

ilTh

e C

ompr

ehen

sive

Eco

nom

ic a

nd T

rade

Agr

eem

ent (

CET

A) b

etw

een

the

EU a

nd C

anad

a ha

s en

tere

d in

to fo

rce

prov

isio

nally

on

21 S

epte

mbe

r 201

7. C

once

rnin

g oi

lsee

ds, t

he a

gree

men

t’s

impl

emen

tatio

n en

tails

the

elim

inat

ion

– fro

m d

ay o

ne –

of

the

EU’s

tariff

s on

Can

adia

n ra

pese

ed o

il im

ports

(se

e M

PPU

Dec

.’16)

. C

ETA’

s fu

ll an

d de

finiti

ve a

pplic

atio

n re

mai

ns

cont

inge

nt u

pon

ratifi

catio

n by

all

EU M

embe

r Sta

te p

arlia

men

ts.

173

TRAD

E PO

LIC

IES

– C

ompr

ehen

sive

trade

ag

reem

ents

Indo

nesi

a, A

ustra

liaM

arch

Palm

oil

Whi

le In

done

sia

and

Aust

ralia

are

neg

otia

ting

a fre

e tra

de d

eal t

o be

con

clud

ed t

his

year

, In

done

sian

offi

cial

s in

vite

d Au

stra

lia to

rem

ove

tariff

s an

d no

n-ta

riff m

easu

res

for I

ndon

esia

n pr

oduc

ts su

ch a

s pal

m o

il, p

aper

pul

p an

d ot

her w

ood

prod

ucts

. Reg

ardi

ng p

alm

oil,

Aus

tralia

n offi

cial

s in

form

ed th

at n

o tra

de b

arrie

rs w

ere

in p

lace

.

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

174

TRAD

E PO

LIC

IES

– C

ompr

ehen

sive

trade

ag

reem

ents

Mal

aysi

a, S

ri La

nka

Dece

mbe

rPa

lm o

il Re

porte

dly,

the

two

coun

tries

are

exp

lorin

g th

e po

ssib

ility

of e

nter

ing

into

a f

ree

trade

ag

reem

ent.

In th

e ev

ent t

hat a

n ag

reem

ent i

s re

ache

d, M

alay

sia

expe

cts

seve

ral p

rodu

cts

to

gain

bet

ter a

cces

s to

the

Sri L

anka

n m

arke

t, in

clud

ing

palm

oil,

on

whi

ch S

ri La

nka

curre

ntly

ch

arge

s a

spec

ial l

evy

of L

KR 1

10–1

30 p

er k

g (U

SD 7

15–8

44 p

er to

nne)

.

175

TRAD

E PO

LIC

IES

– C

ompr

ehen

sive

trade

ag

reem

ents

Glo

bal

Janu

ary

Oliv

e oi

lO

n Ja

nuar

y 1,

the

Inte

rnat

iona

l Oliv

e C

ounc

il’s (I

OC

) new

inte

rnat

iona

l agr

eem

ent o

n ol

ive

oil

and

tabl

e ol

ives

took

effe

ct. I

t is

the

sixt

h su

ch a

gree

men

t sin

ce th

e or

gani

zatio

n w

as s

et u

p in

19

59. C

ompa

red

to th

e pr

evio

us v

ersi

ons,

the

new

agr

eem

ent a

ims

to b

oost

the

invo

lvem

ent

of im

porti

ng c

ount

ries

in IO

C’s

wor

k by

mak

ing

parti

cipa

tion

shar

es m

ore

appe

alin

g. B

ringi

ng

toge

ther

oliv

e oi

l and

tabl

e ol

ive

prod

ucin

g an

d co

nsum

ing

stak

ehol

ders

, IO

C’s

mis

sion

is to

co

ntrib

ute

to th

e su

stai

nabl

e an

d re

spon

sibl

e de

velo

pmen

t of o

live

grow

ing

and

to s

erve

as

a w

orld

foru

m fo

r dis

cuss

ing

polic

y is

sues

and

tack

ling

the

indu

stry

’s ch

alle

nges

.

176

TRAD

E PO

LIC

IES

– C

ompr

ehen

sive

trade

ag

reem

ents

Glo

bal

Mar

chAg

ricul

tura

l cr

ops

WTO

ann

ounc

ed t

he e

ntry

into

for

ce o

f th

e Tr

ade

Faci

litat

ion

Agre

emen

t. Th

e m

ultil

ater

al

agre

emen

t is

aim

ed a

t ex

pedi

ting

the

mov

emen

t, re

leas

e an

d cl

eara

nce

of g

oods

by

sim

plify

ing

impo

rt an

d ex

port

proc

edur

es, c

usto

ms

form

aliti

es a

nd tr

ansi

t req

uire

men

ts. F

ull

impl

emen

tatio

n of

the

agre

emen

t is

expe

cted

to tr

im tr

ade

cost

s an

d he

lp d

iver

sify

trad

e, w

ith

deve

lopi

ng c

ount

ries

havi

ng th

e m

ost g

ain.

The

agr

eem

ent i

nclu

des

a sp

ecia

l fac

ility

mea

nt to

en

sure

that

dev

elop

ing

coun

tries

rece

ive

the

assi

stan

ce n

eede

d to

reap

the

full b

enefi

ts o

f the

tra

de p

act.

By e

nd-F

ebru

ary,

114

coun

tries

not

ified

acc

epta

nce

of th

e ag

reem

ent.

177

TRAD

E PO

LIC

IES

– Pr

oduc

t-spe

cific

bi

late

ral i

nitia

tives

Can

ada,

Vie

t Nam

, In

dia

Mar

chO

ilsee

dsTh

e G

over

nmen

t of C

anad

a re

itera

ted

its c

omm

itmen

t to

stre

ngth

en it

s ag

ricul

tura

l tie

s an

d de

epen

mut

ually

ben

efici

al t

rade

with

bot

h Vi

et N

am a

nd In

dia.

Dur

ing

a tra

de m

issi

on t

o th

e tw

o co

untri

es, g

over

nmen

t and

indu

stry

offi

cial

s pr

omot

ed C

anad

a’s

agri-

food

pro

duct

s,

incl

udin

g oi

lsee

ds. F

urth

erm

ore,

in In

dia,

sev

eral

Mem

oran

da o

f Und

erst

andi

ng h

ave

been

si

gned

bet

wee

n C

anad

ian

rape

seed

oil

dist

ribut

ors

and

Indi

an re

taile

rs.

178

TRAD

E PO

LIC

IES

– Pr

oduc

t-spe

cific

bi

late

ral i

nitia

tives

Chi

na, U

krai

neSe

ptem

ber

Sunfl

ower

seed

ca

keTh

e st

anda

rd s

ettin

g bo

dies

of C

hina

and

Ukr

aine

agr

eed

on a

san

itary

and

bio

safe

ty p

roto

col

that

will

gove

rn fu

ture

exp

orts

of U

krai

nian

sun

flow

erse

ed c

ake

to C

hina

.

179

TRAD

E PO

LIC

IES

– Pr

oduc

t-spe

cific

bi

late

ral i

nitia

tives

Indi

a, G

hana

Mar

chO

ilsee

ds,

vege

atbl

e oi

lsIn

dian

gov

ernm

enta

l offi

cial

s re

affirm

ed th

eir c

ount

ry’s

com

mitm

ent t

o de

epen

trad

e re

latio

ns

with

Gha

na, m

entio

ning

, int

er a

lia, I

ndia

’s gr

owin

g de

man

d fo

r oils

eeds

and

veg

etab

le o

il fro

m

Gha

na.

180

TRAD

E PO

LIC

IES

– Pr

oduc

t-spe

cific

bi

late

ral i

nitia

tives

Indo

nesi

a, C

hina

June

Biod

iese

lAc

cord

ing

to m

edia

sou

rces

, rep

rese

ntat

ives

fro

m t

he t

wo

coun

tries

dis

cuss

ed a

bout

the

po

ssib

ility

of In

done

sia

supp

ortin

g C

hina

in it

s go

al to

rais

e do

mes

tic b

iodi

esel

con

sum

ptio

n.

Repo

rtedl

y, In

done

sia

is r

eady

to

coop

erat

e w

ith C

hina

, w

heth

er b

y su

pply

ing

finis

hed

biod

iese

l, cr

ude

palm

oil

(as

feed

stoc

k fo

r bio

dies

el p

rodu

ctio

n), o

r the

tech

nolo

gy re

quire

d to

pro

duce

bio

dies

el. A

t the

sam

e tim

e, In

done

sia

also

invi

ted

Chi

na to

inve

st in

Indo

nesi

a’s

dow

nstre

am p

alm

oil

proc

essi

ng s

ecto

r. Ba

sed

on C

hina

’s 13

th F

ive-

Year

-Pla

n, d

omes

tic

biod

iese

l con

sum

ptio

n w

ould

clim

b to

2 m

illion

tonn

es b

y 20

20 –

from

toda

y’s le

vel o

f les

s th

an 0

.5 m

illion

tonn

es. I

n th

e ca

se o

f Ind

ones

ia, o

n th

e ot

her h

and,

the

biod

iese

l mar

ket i

s m

ore

mat

ure

and

the

indu

stry

is fa

ced

with

exc

ess

prod

uctio

n ca

paci

ty –

hen

ce th

e se

arch

fo

r new

exp

ort m

arke

ts.

181

TRAD

E PO

LIC

IES

– Pr

oduc

t-spe

cific

bi

late

ral i

nitia

tives

Indo

nesi

a, V

iet N

amJu

lyPa

lm o

il Re

cent

effo

rts to

pro

mot

e bu

sine

ss b

etw

een

Indo

nesi

a an

d Vi

et N

am a

re e

xpec

ted

to re

sult

in

incr

ease

d su

pplie

s of

Indo

nesi

an p

aper

and

pal

m o

il to

the

Viet

nam

ese

mar

ket,

acco

rdin

g to

lo

cal m

edia

repo

rting

on

rece

nt b

ilate

ral t

alks

.

34 Oilcrops complex: Policy changes and industry measures - Annual compendium 2017

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

182

TRAD

E PO

LIC

IES

– Pr

oduc

t-spe

cific

bi

late

ral i

nitia

tives

Indo

nesi

a, N

iger

iaJu

lyPa

lm o

ilAc

cord

ing

to o

ffici

al s

ourc

es,

Indo

nesi

an G

over

nmen

t re

pres

enta

tives

ini

tiate

d ta

lks

with

N

iger

ian

coun

terp

arts

to

revi

ve s

hipm

ents

of

Indo

nesi

an c

rude

pal

m o

il (C

PO) t

o N

iger

ia.

Repo

rtedl

y, C

PO tr

ade

betw

een

the

two

coun

tries

has

falle

n sh

arpl

y ov

er th

e la

st fe

w y

ears

, as

Nig

eria

intro

duce

d im

port

rest

rictio

ns to

pro

tect

its

fore

ign

exch

ange

mar

ket a

nd s

timul

ate

dom

estic

oil

palm

cul

tivat

ion.

183

TRAD

E PO

LIC

IES

– Pr

oduc

t-spe

cific

bi

late

ral i

nitia

tives

Indo

nesi

a, M

alay

sia

Augu

stPa

lm o

ilU

nder

the

fra

mew

ork

of C

POPC

, th

e C

ounc

il of

Pal

m O

il Pr

oduc

ing

Cou

ntrie

s se

t up

by

Mal

aysi

a an

d In

done

sia

to fo

ster

col

labo

ratio

n on

pal

m o

il, th

e tw

o fo

undi

ng c

ount

ries

have

ag

reed

to (i

) joi

ntly

exp

lore

the

poss

ibilit

y of

sup

plyi

ng C

hina

, Ind

ia a

nd o

ther

cou

ntrie

s w

ith

palm

oil

for t

heir

nasc

ent b

iodi

esel

indu

strie

s, a

nd (i

i) co

nduc

t joi

nt c

ampa

igns

in k

ey im

port

mar

kets

to p

ublic

ize p

alm

oil’s

env

ironm

enta

l cre

dent

ials

. Mor

eove

r, th

e C

POPC

Sec

reta

riat

was

task

ed to

invi

te o

ther

pal

m o

il pr

oduc

ing

coun

tries

to jo

in th

e C

ounc

il.

184

TRAD

E PO

LIC

IES

– Pr

oduc

t-spe

cific

bi

late

ral i

nitia

tives

Indo

nesi

a, R

ussi

an

Fede

ratio

nAu

gust

Palm

oil,

cop

raG

over

nmen

t offi

cial

s in

form

ed th

at a

pre

limin

ary

deal

to b

arte

r milit

ary

jets

for c

omm

oditi

es –

in

clud

ing

palm

oil

and

copr

a –

has

been

sig

ned

betw

een

an In

done

sian

and

a R

ussi

an s

tate

tra

ding

com

pany

. Det

ails

abo

ut th

e qu

antit

ies

of p

rodu

ce to

be

ship

ped

by In

done

sia

wer

e no

t mad

e av

aila

ble.

185

TRAD

E PO

LIC

IES

– Pr

oduc

t-spe

cific

bi

late

ral i

nitia

tives

Indo

nesi

a,

Uzb

ekis

tan

Sept

embe

rC

ocon

ut,

soyb

ean,

pal

m

oil

Indo

nesi

a an

d U

zbek

ista

n ag

reed

to e

nhan

ce b

ilate

ral c

oope

ratio

n in

agr

icul

ture

and

fish

erie

s.

With

rega

rd to

oilc

rops

, Ind

ones

ia v

iew

s U

zbek

ista

n as

a p

oten

tial e

xpor

t mar

ket f

or p

alm

oil

and

coco

nut,

whi

le U

zbek

ista

n is

inte

rest

ed in

Indo

nesi

a’s

expe

rienc

e in

soy

bean

cul

tivat

ion.

186

TRAD

E PO

LIC

IES

– Pr

oduc

t-spe

cific

bi

late

ral i

nitia

tives

Kaza

khst

an, C

hina

Mar

chSo

ybea

nsG

over

nmen

t offi

cial

s fro

m K

azak

hsta

n an

d C

hina

sig

ned

a pr

otoc

ol o

n ph

ytos

anita

ry

requ

irem

ents

for

incr

easi

ng th

e ex

porta

tion

of K

azak

h so

ybea

ns to

Chi

na (s

ee a

lso M

PPU

Ja

n.&F

eb.’1

7). R

epor

tedl

y, al

l soy

bean

impo

rts fr

om K

azak

hsta

n w

ill be

cru

shed

in C

hina

.

187

TRAD

E PO

LIC

IES

– Pr

oduc

t-spe

cific

bi

late

ral i

nitia

tives

Keny

a, Z

ambi

a,

East

ern/

Sout

hern

Af

rica

Mar

chPa

lm o

il Du

ring

bila

tera

l tal

ks b

etw

een

the

two

coun

tries

, Ke

nyan

gov

ernm

ent

offici

als

stat

ed t

hat

Keny

an m

ilk a

nd p

alm

oil

prod

ucts

cou

ld n

ot a

cces

s th

e Za

mbi

an m

arke

t due

to d

iver

ging

st

anda

rds.

The

y ca

lled

for t

he d

evel

opm

ent o

f com

mon

CO

MES

A st

anda

rds

to e

nabl

e tra

de

betw

een

mem

bers

of C

OM

ESA

(Com

mon

Mar

ket f

or E

aste

rn a

nd S

outh

ern

Afric

a).

188

TRAD

E PO

LIC

IES

– Pr

oduc

t-spe

cific

bi

late

ral i

nitia

tives

Mal

aysi

a, In

dia

May

Palm

oil

The

Gov

ernm

ents

of M

alay

sia

and

Indi

a si

gned

a M

emor

andu

m o

f Und

erst

andi

ng a

imed

at

help

ing

rais

e th

e pr

esen

ce o

f Mal

aysi

an p

alm

oil

in th

e In

dian

mar

ket.

The

MoU

pro

vide

s a

plat

form

for M

alay

sian

pal

m o

il re

late

d ag

enci

es to

exp

lore

– to

geth

er w

ith In

dian

rese

arch

in

stitu

tions

and

oth

er o

rgan

izatio

ns –

new

tra

its a

nd a

pplic

atio

ns o

f pa

lm o

il, s

peci

fical

ly

tailo

red

to I

ndia

’s fa

st g

row

ing

mar

ket.

The

use

of M

SPO

-cer

tified

pal

m o

il (M

alay

sian

Su

stai

nabl

e Pa

lm O

il) w

ill al

so b

e pr

omot

ed u

nder

the

acco

rd.

189

TRAD

E PO

LIC

IES

– Pr

oduc

t-spe

cific

bi

late

ral i

nitia

tives

Mal

aysi

a,

Philip

pine

sJu

lyPa

lm o

il,

biod

iese

lM

alay

sia

is ta

rget

ing

a 50

per

cent

incr

ease

in it

s sh

ipm

ents

of p

alm

oil

and

palm

oil-

base

d pr

oduc

ts (i

nclu

ding

bio

dies

el) t

o th

e Ph

ilippi

nes

over

the

com

ing

thre

e ye

ars,

gov

ernm

ent

sour

ces

repo

rted.

Acc

ordi

ng to

bila

tera

l tal

ks, t

here

is ro

om fo

r Phi

lippi

ne’s

edib

le o

il im

ports

to

incr

ease

, con

side

ring

that

the

coun

try is

not

sel

f-suffi

cien

t in

edib

le v

eget

able

oil

and

that

de

man

d is

ste

adily

risi

ng. C

onsu

ltatio

ns a

lso

focu

sed

on p

ossi

bilit

ies

of c

olla

bora

tion

in th

e ar

ea o

f re

new

able

ene

rgy,

incl

udin

g bi

odie

sel.

In t

he P

hilip

pine

s, t

he p

lann

ed in

crea

se in

m

anda

tory

bio

dies

el b

lend

ing

(from

2 p

erce

nt to

5 p

erce

nt) h

as b

een

post

pone

d se

vera

l tim

es

due

to in

suffi

cien

t dom

estic

sup

plie

s of

coc

onut

oil,

the

coun

try’s

mai

n bi

odie

sel f

eeds

tock

. By

con

trast

, Mal

aysi

a re

porte

dly

has

ampl

e ca

paci

ty to

exp

ort e

ither

pal

m o

il-ba

sed

biod

iese

l or

cru

de p

alm

oil

to b

e us

ed a

s bi

odie

sel f

eeds

tock

.

Oilcrops complex: Policy changes and industry measures - Annual compendium 2017 35

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

190

TRAD

E PO

LIC

IES

– Pr

oduc

t-spe

cific

bi

late

ral i

nitia

tives

Mal

aysi

a, G

hana

Nov

embe

rO

il pa

lmM

alay

sia’

s pa

lm o

il in

dust

ry is

set

to p

artn

er w

ith c

ompa

nies

in G

hana

’s pa

lm o

il se

ctor

to

stre

ngth

en t

he l

atte

r’s p

rodu

ctio

n an

d pr

oces

sing

cap

aciti

es.

The

exch

ange

of

tech

nica

l an

d m

arke

ting

expe

rtise

is

expe

cted

to

bols

ter

Gha

naia

n pr

oduc

tion

for

both

dom

estic

co

nsum

ptio

n an

d ex

porta

tion

with

in W

est A

frica

.

191

TRAD

E PO

LIC

IES

– Pr

oduc

t-spe

cific

bi

late

ral i

nitia

tives

Mal

aysi

a, V

iet N

amN

ovem

ber

Oil

palm

Gov

ernm

ent o

ffici

als

from

Mal

aysi

a an

d Vi

et N

am a

gree

d to

exp

lore

opp

ortu

nitie

s to

incr

ease

st

rate

gic

colla

bora

tion

in th

e de

velo

pmen

t of t

heir

resp

ectiv

e pl

anta

tion

indu

strie

s, p

artic

ular

ly

conc

erni

ng o

il pa

lm, r

ubbe

r and

pep

per.

192

TRAD

E PO

LIC

IES

– Pr

oduc

t-spe

cific

bi

late

ral i

nitia

tives

Nig

eria

, Ind

ones

iaJu

nePa

lm o

ilIn

line

with

on-

goin

g eff

orts

to p

rom

ote

econ

omic

coo

pera

tion

and

bila

tera

l tra

de b

etw

een

Nig

eria

and

Indo

nesi

a, g

over

nmen

t rep

rese

ntat

ive

from

bot

h si

des

agre

ed to

col

labo

rate

in

the

deve

lopm

ent o

f Nig

eria

’s pa

lm o

il in

dust

ry. N

iger

ia w

as a

lso

invi

ted

to jo

in th

e C

ounc

il of

Pa

lm O

il Pr

oduc

ing

Cou

ntrie

s (C

POPC

). Th

e C

ounc

il w

as e

stab

lishe

d re

cent

ly b

y In

done

sia

and

Mal

aysi

a, in

a b

id to

pro

mot

e pr

ice

stab

ilizat

ion

and

sust

aina

ble

palm

oil

prod

uctio

n.

193

TRAD

E PO

LIC

IES

– Pr

oduc

t-spe

cific

bi

late

ral i

nitia

tives

Philip

pine

s,

Mal

aysi

aSe

ptem

ber

Oil

palm

G

over

nmen

t offi

cial

s of

the

two

coun

tries

dis

cuss

ed th

e po

ssib

ility

of s

ettin

g up

join

t ven

ture

s fo

r oil p

alm

pla

ntat

ions

in th

e Ph

ilippi

nes

to c

ater

to th

e co

untry

’s ris

ing

dem

and

for v

eget

able

oi

l for

bot

h fo

od a

nd in

dust

rial u

ses.

Rep

orte

dly,

in th

e lo

ng te

rm, t

he jo

int d

evel

opm

ent o

f up

to 8

0 00

0 he

ctar

es o

f oil

palm

pla

ntat

ions

wou

ld b

e co

nsid

ered

.

194

TRAD

E PO

LIC

IES

– Pr

oduc

t-spe

cific

bi

late

ral i

nitia

tives

Russ

ian

Fede

ratio

n,

Chi

naM

arch

Soyb

ean,

fla

xsee

d,

sunfl

ower

oil

Base

d on

the

ter

ms

of a

long

-term

con

tract

bet

wee

n th

e Ru

ssia

n Fe

dera

tion

and

Chi

na,

ship

men

ts o

f Rus

sian

agr

icul

tura

l pro

duct

s to

Chi

na a

re s

et to

incr

ease

, loc

al n

ews

agen

cies

in

form

ed. R

epor

tedl

y, in

201

8, th

e Ru

ssia

n Fe

dera

tion

is p

lann

ing

to e

xpor

t 1.5

milli

on to

nnes

of

agr

icul

tura

l pro

duct

s –

incl

udin

g so

ybea

ns, b

arle

y, fla

x se

ed a

nd s

unflo

wer

oil

– to

Chi

na.

195

TRAD

E PO

LIC

IES

– Pr

oduc

t-spe

cific

bi

late

ral i

nitia

tives

Ukr

aine

, Ira

n (Is

lam

ic R

epub

lic o

f) M

arch

Oils

eeds

, ve

geta

ble

oils

Acco

rdin

g to

Ukr

aini

an g

over

nmen

t offi

cial

s, U

krai

ne p

lans

to s

igni

fican

tly in

crea

se it

s tra

de

in fo

od a

nd a

gric

ultu

ral p

rodu

cts

with

Iran

. Rep

orte

dly,

the

two

side

s ag

reed

that

the

trade

po

tent

ial b

etw

een

the

coun

tries

is n

ot fu

lly ta

pped

. Pro

duct

s fo

r w

hich

Ukr

aine

inte

nds

to

expa

nd it

s sh

ipm

ents

to Ir

an in

clud

e oi

lsee

ds a

nd v

eget

able

oils

.

196

TRAD

E PO

LIC

IES

– Pr

oduc

t-spe

cific

bi

late

ral i

nitia

tives

Ukr

aine

, Chi

naN

ovem

ber

Sunfl

ower

mea

lLa

st S

epte

mbe

r, U

krai

ne a

nd C

hina

sig

ned

a pr

otoc

ol o

n st

orag

e, p

acka

ging

, la

belin

g,

quar

antin

e an

d sa

nita

ry/p

hyto

sani

tary

requ

irem

ents

for i

mpo

rting

Ukr

aini

an s

unflo

wer

mea

l in

to C

hina

. Add

ing

Chi

na to

its

list o

f buy

ers

is e

xpec

ted

to ra

ise

Ukr

aine

’s ex

ports

to A

sia,

bo

th th

roug

h di

rect

sal

es to

Chi

na a

nd li

kely

re-e

xpor

ts to

oth

er c

ount

ries

in th

e re

gion

.

197

FOO

D ST

ANDA

RDS

& FO

OD

SAFE

TY

POLI

CIE

S

Can

ada

May

Hyd

roge

nate

d oi

lsC

anad

a’s

Hea

lth M

inis

try c

onfir

med

its

plan

to

proh

ibit

the

use

of p

artia

lly h

ydro

gena

ted

oils

(PH

Os)

– a

key

sou

rce

of h

arm

ful t

rans

fats

in fo

od p

rodu

cts

– by

sum

mer

201

8 (s

ee

MPP

U D

ec.’1

6). C

anad

a’s

initi

ativ

e al

igns

with

glo

bal e

fforts

tow

ard

the

elim

inat

ion

of P

HO

s in

food

s. A

ccor

ding

to th

e m

inis

try, m

aint

aini

ng th

e cu

rrent

vol

unta

ry a

ppro

ach

(see

MPP

U

Sep.

’11

& Ju

ly’16

) wou

ld b

e in

suffi

cien

t to

achi

eve

the

obje

ctiv

e of

redu

cing

the

popu

latio

n’s

trans

fat i

ntak

e to

the

low

est l

evel

pos

sibl

e. T

he m

inis

try a

lso

inte

nds

to p

rovi

de s

take

hold

ers

with

info

rmat

ion

on m

ore

heal

thfu

l alte

rnat

ives

to

PHO

s, p

refe

rabl

y un

satu

rate

d fa

ts. A

s a

disi

ncen

tive

for t

he in

dust

ry to

repl

ace

PHO

s w

ith s

atur

ated

fats

, the

min

istry

pro

pose

d to

in

clud

e fro

nt-o

f-pac

k w

arni

ngs

on p

rodu

cts

that

are

hig

h in

sat

urat

ed fa

ts.

36 Oilcrops complex: Policy changes and industry measures - Annual compendium 2017

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

198

FOO

D ST

ANDA

RDS

& FO

OD

SAFE

TY

POLI

CIE

S

Can

ada

Sept

embe

rTr

ans

fatty

aci

dFo

llow

ing

up o

n a

prop

osal

issu

ed la

st y

ear (

see

MPP

U D

ec.’1

6), t

he G

over

nmen

t of C

anad

a is

now

set

to p

erm

anen

tly b

an p

artia

lly h

ydro

gena

ted

oils

– th

e m

ain

sour

ce o

f ind

ustri

ally

pr

oduc

ed tr

ans

fatty

aci

ds (o

r tra

ns fa

ts).

The

ban

will

appl

y to

all

food

s so

ld in

the

coun

try,

incl

udin

g im

porte

d pr

oduc

ts a

nd fo

ods

prep

ared

and

ser

ved

in re

stau

rant

s. B

y re

duci

ng tr

ans

fats

in th

e fo

od s

uppl

y ch

ain

to th

e lo

wes

t lev

el p

ossi

ble,

the

Gov

ernm

ent i

nten

ds to

redu

ce

Can

adia

ns’ r

isk

of h

eart

dise

ases

. In

orde

r to

allo

w th

e fo

od in

dust

ry s

uffici

ent t

ime

to fi

nd

suita

ble

alte

rnat

ives

, the

ban

will

only

com

e in

to f

orce

in S

epte

mbe

r 20

18. H

ydro

gena

ted

vege

tabl

e oi

ls a

re w

idel

y us

ed in

the

pro

duct

ion

of p

astri

es, b

aked

goo

ds a

nd p

acka

ged

good

s to

ext

end

shel

f life

. Can

ada’

s ba

n is

con

sist

ent w

ith g

loba

l effo

rts to

elim

inat

e ar

tifici

al

trans

fats

in fo

ods,

incl

udin

g th

ose

take

n in

the

Uni

ted

Stat

es (s

ee M

PPU

Jul

y’15

).

199

FOO

D ST

ANDA

RDS

& FO

OD

SAFE

TY

POLI

CIE

S

Chi

naM

ayEd

ible

mea

lsC

hina

’s N

atio

nal H

ealth

and

Fam

ily P

lann

ing

Com

mis

sion

con

firm

ed th

at a

new

safe

ty st

anda

rd

for f

ood

proc

essi

ng m

eals

will

com

e in

to fo

rce

on 2

3 Ju

ne 2

017

(see

also

MPP

U N

ov.’1

5). A

s th

e st

anda

rd o

nly

appl

ies

to e

dibl

e m

eals

for f

ood

proc

essi

ng, i

t doe

s no

t con

cern

rape

seed

an

d co

ttons

eed

mea

l.

200

FOO

D ST

ANDA

RDS

& FO

OD

SAFE

TY

POLI

CIE

S

Chi

naDe

cem

ber

Soyb

ean

Chi

na’s

food

sta

ndar

ds a

utho

ritie

s re

leas

ed a

new

cod

e of

hyg

ieni

c pr

actic

e fo

r th

e pr

oces

sing

of g

rain

s, in

clud

ing

soyb

eans

. The

new

sta

ndar

d co

ncer

ns s

tora

ge a

nd tr

ansp

ort

of u

npro

cess

ed g

rain

s an

d co

mpr

ises

det

aile

d hy

gien

ic r

equi

rem

ents

and

pro

visi

ons

for

safe

ty c

ontro

l pro

cedu

res.

201

FOO

D ST

ANDA

RDS

& FO

OD

SAFE

TY

POLI

CIE

S

Euro

pean

Uni

onM

arch

Oliv

e oi

lFo

llow

ing

the

adop

tion

by th

e Eu

rope

an P

arlia

men

t on

15 M

arch

201

7, n

ew, m

ore

strin

gent

re

gula

tions

on

food

saf

ety

and

insp

ectio

n ar

e se

t to

com

e in

to fo

rce

in A

pril,

requ

iring

EU

m

embe

r sta

tes

to a

pply

the

new

rule

s by

202

0. T

he m

ain

obje

ctiv

e of

the

new

regu

latio

ns

is t

o ta

ckle

fra

udul

ent

prac

tices

in t

he f

ood

indu

stry

acr

oss

the

EU.

Sect

ors

expe

cted

to

bene

fit fr

om th

e ne

w ru

les

incl

ude

the

oliv

e oi

l sec

tor,

whe

re s

ever

al c

ases

of f

raud

hav

e be

en

unco

vere

d in

rece

nt y

ears

. Typ

ical

ly, lo

w-q

ualit

y ol

ive

pom

ace

oils

wer

e so

ld a

nd e

xpor

ted

as e

xtra

virg

in o

live

oil,

and

oliv

es s

ourc

ed fr

om a

noth

er c

ount

ry w

ere

proc

esse

d an

d so

ld a

s in

dige

nous

oliv

e oi

l.

202

FOO

D ST

ANDA

RDS

& FO

OD

SAFE

TY

POLI

CIE

S

Gre

ece

Dece

mbe

rO

live

oil

From

Jan

uary

201

8, G

reec

e’s

rest

aura

nt a

nd h

ospi

talit

y se

ctor

will

be re

quire

d to

ser

ve o

live

oil o

nly i

n its

orig

inal

pac

kagi

ng, id

entif

ying

the

bran

d. T

he m

easu

re is

mea

nt to

pre

vent

refil

ling

of o

ld b

ottle

s w

ith lo

wer

gra

de o

live

oil,

thus

pro

mot

ing

qual

ity a

nd p

rote

ctin

g co

nsum

ers

from

frau

d. W

hile

com

para

ble

regu

latio

ns a

re in

pla

ce in

Ital

y, Po

rtuga

l and

Spa

in, e

fforts

to

intro

duce

EU

-wid

e le

gisl

atio

n to

this

effe

ct w

ere

susp

ende

d ba

ck in

201

3 (s

ee M

PPU

Jun

e ’1

3).

203

FOO

D ST

ANDA

RDS

& FO

OD

SAFE

TY

POLI

CIE

S

Indi

aFe

brua

ryTr

ans

fatty

aci

dTh

e G

over

nmen

t of

Ind

ia s

et 2

7 Fe

brua

ry 2

017

as t

he e

nfor

cem

ent

date

for

bot

h, t

he

man

dato

ry d

ecla

ratio

n of

tran

s fa

t and

sat

urat

ed fa

t con

tent

on

food

pro

duct

labe

ls a

nd th

e 5

perc

ent l

imit

for t

rans

fatty

aci

d co

nten

t (by

wei

ght)

in fa

ts, o

ils a

nd fa

t em

ulsi

ons

(see

also

M

PPU

Sep

.’15

& Se

p.’1

6).

204

FOO

D ST

ANDA

RDS

& FO

OD

SAFE

TY

POLI

CIE

S

Indi

aM

arch

Edib

le o

ilTh

e Fo

od A

utho

rity

of P

unja

b St

ate

star

ted

colle

ctin

g an

d te

stin

g sa

mpl

es o

f nu

mer

ous

bran

ds o

f edi

ble

oil/g

hee

sold

in lo

cal m

arke

ts. R

epor

tedl

y, al

l sub

-sta

ndar

d an

d ad

ulte

rate

d oi

l pro

duct

s w

ill be

ban

ned

from

the

mar

ket.

(On

past

inst

ance

s of

veg

etab

le o

il ad

ulte

ratio

n se

e M

PPU

Jul

y’16

.)

Oilcrops complex: Policy changes and industry measures - Annual compendium 2017 37

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

205

FOO

D ST

ANDA

RDS

& FO

OD

SAFE

TY

POLI

CIE

S

Indi

aM

arch

Tran

s fa

t, sa

tura

ted

fat

Indi

a’s

Fede

ral

Food

Saf

ety

and

Stan

dard

s Au

thor

ity p

ostp

oned

to

30 J

une

2017

the

co

mpl

ianc

e da

te fo

r m

anda

tory

dec

lara

tion

of t

rans

fat

and

satu

rate

d fa

t co

nten

t on

food

pr

oduc

t la

bels

. The

com

plia

nce

date

(orig

inal

ly s

et a

t 25

May

201

6) h

as b

een

post

pone

d tw

ice

befo

re. T

he d

efer

men

t is

mea

nt to

allo

w m

anuf

actu

rers

to u

tilize

the

exis

ting

stoc

k of

th

eir p

acka

ging

mat

eria

ls. C

onve

rsel

y, en

try in

to fo

rce

of th

e 5

perc

ent l

imit

for t

rans

fatty

aci

d co

nten

t (by

wei

ght)

in fa

ts, o

ils a

nd fa

t em

ulsi

ons

rem

ains

effe

ctiv

e 28

Feb

ruar

y 20

17.

206

FOO

D ST

ANDA

RDS

& FO

OD

SAFE

TY

POLI

CIE

S

Indi

aJu

lyEd

ible

veg

etab

le

oils

Indi

a’s

Food

Sta

ndar

ds a

nd S

afet

y Au

thor

ity (F

SSAI

) inv

ited

publ

ic c

omm

ents

on

a se

t of

re

gula

tory

am

endm

ents

con

cern

ing

(i) t

he r

emov

al o

f th

e Bo

udou

in t

est

requ

irem

ent

for

blen

ded

edib

le v

eget

able

oils

, and

(ii) p

rovi

sion

s re

gula

ting

the

sale

of h

ydro

gena

ted

vege

tabl

e oi

ls/fa

ts.

207

FOO

D ST

ANDA

RDS

& FO

OD

SAFE

TY

POLI

CIE

S

Indi

aJu

lyO

ils/fa

tsIn

dia’

s Fo

od S

afet

y an

d St

anda

rds

Auth

ority

(FSS

AI) i

nfor

med

that

revi

sed

stan

dard

s fo

r oils

an

d fa

ts w

ould

com

e in

to fo

rce

on 1

Jul

y 20

17. T

he a

men

ded

stan

dard

s in

clud

e a

rede

finiti

on

of in

ter-e

ster

ified

veg

etab

le fa

t and

regu

late

s th

e us

age

of fo

od g

rade

enz

ymes

in o

il re

finin

g pr

oces

ses.

208

FOO

D ST

ANDA

RDS

& FO

OD

SAFE

TY

POLI

CIE

S

Indi

aJu

lyTr

ans

fat,

satu

rate

d fa

tFS

SAI a

nnou

nced

a fu

rther

pos

tpon

emen

t in

the

com

plia

nce

date

for m

anda

tory

dec

lara

tion

of t

rans

fat

and

sat

urat

ed f

at c

onte

nt o

n fo

od p

rodu

ct l

abel

s (s

ee a

lso M

PPU

Apr

.’16)

. Re

porte

dly,

the

new

com

plia

nce

date

will

be 3

0 Se

ptem

ber 2

017

and

no fu

rther

ext

ensi

ons

will

be g

rant

ed. T

he a

dditi

onal

def

erra

l is

mea

nt t

o al

low

man

ufac

ture

rs t

o ut

ilize

exis

ting

stoc

ks o

f pac

kagi

ng m

ater

ial.

209

FOO

D ST

ANDA

RDS

& FO

OD

SAFE

TY

POLI

CIE

S

Indi

aN

ovem

ber

Tran

s fa

t, sa

tura

ted

fat

Indi

a’s

Food

Saf

ety

and

Stan

dard

s Au

thor

ity a

nnou

nced

a f

urth

er p

ostp

onem

ent

in t

he

com

plia

nce

date

for

man

dato

ry d

ecla

ratio

n of

tra

ns fa

t an

d sa

tura

ted

fat

cont

ent

on fo

od

prod

uct

labe

ls (s

ee a

lso M

PPU

Aug

.’17)

. Th

e ne

w c

ompl

ianc

e da

te w

ill be

31

Dece

mbe

r 20

17. T

he a

dditi

onal

def

erra

l was

gra

nted

to a

llow

man

ufac

ture

rs to

util

ize e

xist

ing

stoc

ks o

f pa

ckag

ing

mat

eria

l.

210

FOO

D ST

ANDA

RDS

& FO

OD

SAFE

TY

POLI

CIE

S

Mya

nmar

Mar

chVe

geta

ble

oil

Acco

rdin

g to

loca

l pre

ss re

ports

, the

Gov

ernm

ent o

f Mya

nmar

pla

ns to

take

act

ion

agai

nst

illega

l veg

etab

le o

il im

ports

and

frau

dule

nt s

ales

of c

ooki

ng o

ils in

the

coun

try. R

epor

tedl

y, so

me

bran

ds o

f gro

undn

ut a

nd s

esam

e oi

l sol

d on

the

dom

estic

mar

ket w

ere

foun

d to

act

ually

co

ntai

n a

mix

ture

of d

iffer

ent u

nide

ntifi

ed o

ils p

lus

artifi

cial

frag

ranc

e.

211

FOO

D ST

ANDA

RDS

& FO

OD

SAFE

TY

POLI

CIE

S

Peru

Nov

embe

rTr

ans

fatty

aci

d,

satu

rate

d fa

tAs

par

t of e

fforts

to p

rom

ote

a he

alth

y di

et, P

eru’

s H

ealth

Min

istry

rele

ased

a m

anua

l with

de

taile

d sp

ecifi

catio

ns fo

r the

incl

usio

n of

war

ning

s on

food

pro

duct

labe

ls w

hen

the

satu

rate

d fa

t, tra

ns fa

t, sa

lt or

sug

ar c

onte

nt e

xcee

ds s

peci

fic th

resh

olds

. The

man

ual h

as b

een

notifi

ed

to th

e W

orld

Tra

de O

rgan

izatio

n fo

r mem

ber c

ount

ry c

omm

ents

.

212

FOO

D ST

ANDA

RDS

& FO

OD

SAFE

TY

POLI

CIE

S

Thai

land

Dece

mbe

rTr

ans

fatty

aci

dW

ith a

view

to re

duce

con

sum

ers’

risk

of h

eart

dise

ase,

the

Thai

Foo

d an

d Dr

ug A

dmin

istra

tion

draf

ted

a ne

w re

quire

men

t tha

t wou

ld b

an th

e us

e of

par

tially

hyd

roge

nate

d oi

ls in

food

s. T

he

prop

osed

ban

is c

onsi

sten

t with

glo

bal e

fforts

to e

limin

ate

indu

stria

lly p

rodu

ced

trans

fats

fro

m fo

ods,

with

com

plet

e ba

ns s

et to

com

e in

to fo

rce

durin

g 20

18 in

Can

ada

and

the

Uni

ted

Stat

es (s

ee M

PPU

Jul

y’15

& O

ct.’1

7).

213

FOO

D ST

ANDA

RDS

& FO

OD

SAFE

TY

POLI

CIE

S

Turk

eyN

ovem

ber

Vege

tabl

e oi

lTu

rkey

’s M

inis

try o

f Foo

d, A

gric

ultu

re a

nd L

ives

tock

pos

tpon

ed –

for t

he s

even

th ti

me

– th

e im

plem

enta

tion

of it

s Pr

oduc

t Ver

ifica

tion

Mon

itorin

g Sy

stem

(PVS

M),

amid

indu

stry

con

cern

s ab

out c

ost a

nd fo

od s

afet

y is

sues

aris

ing

from

man

dato

ry p

rodu

ct v

erifi

catio

n an

d la

bellin

g.

The

new

sch

emes

’ mai

n ob

ject

ive

is to

elim

inat

e ad

ulte

rate

d fo

ods,

imita

tions

and

frau

d in

six

fo

od c

ateg

orie

s, in

clud

ing

vege

tabl

e oi

l.

38 Oilcrops complex: Policy changes and industry measures - Annual compendium 2017

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

214

FOO

D ST

ANDA

RDS

& FO

OD

SAFE

TY

POLI

CIE

S

Uni

ted

Stat

esAu

gust

Soyb

ean

oil

Resp

ondi

ng to

a p

etiti

on fi

led

by a

larg

e ag

ribus

ines

s an

d fo

od c

ompa

ny, t

he U

.S. F

ood

and

Drug

Adm

inis

tratio

n de

cide

d to

allo

w fo

od m

anuf

actu

rers

and

rest

aura

nts

to m

ake

qual

ified

he

alth

cla

ims

linki

ng s

oybe

an o

il to

a re

duce

d ris

k of

cor

onar

y he

art d

isea

se. T

he d

ecis

ion

is

base

d on

‘sup

porti

ve b

ut n

ot c

oncl

usiv

e ev

iden

ce’ t

hat e

atin

g so

ybea

n oi

l – w

hich

con

tain

s un

satu

rate

d fa

tty a

cids

– m

ay p

rovi

de h

eart

heal

th b

enefi

ts, p

rovi

ded

soyb

ean

oil is

to re

plac

e (o

r not

to in

crea

se) s

atur

ated

fat i

ntak

e an

d do

es n

ot ra

ise

daily

cal

oric

inta

ke.

215

FOO

D ST

ANDA

RDS

& FO

OD

SAFE

TY

POLI

CIE

S

Uni

ted

Stat

esN

ovem

ber

Soyb

ean

prot

ein

The

U.S

. Foo

d an

d Dr

ug A

dmin

istra

tion

prop

osed

to re

voke

an

auth

orize

d he

alth

cla

im th

at

links

soy

pro

tein

con

sum

ptio

n to

red

uced

ris

k of

hea

rt di

seas

e, c

iting

inco

nsis

tent

res

ults

fro

m re

sear

ch c

ondu

cted

sin

ce th

e cl

aim

was

aut

horiz

ed in

199

9. C

ompa

nies

cur

rent

ly u

sing

th

e he

alth

cla

im o

n fo

od p

rodu

ct la

bels

may

con

tinue

to d

o so

unt

il th

e ag

ency

take

s a

final

de

cisi

on.

216

FOO

D ST

ANDA

RDS

& FO

OD

SAFE

TY

POLI

CIE

S

Uni

ted

Stat

esDe

cem

ber

Tran

s fa

tty a

cid

A st

udy

unde

rtake

n by

the

Uni

ted

Stat

es D

epar

tmen

t of

Agr

icul

ture

, as

sess

ed p

rodu

ct

turn

over

in th

e U

.S. f

ood

indu

stry

and

look

ed in

to im

plic

atio

ns fo

r nut

rient

con

tent

– fo

cusi

ng

on th

ree

heal

th-re

leva

nt in

gred

ient

s: s

alt,

suga

r and

fat.

Upo

n ex

amin

ing

prod

uct e

ntrie

s an

d ex

its in

hig

h-tu

rnov

er fo

od c

ateg

orie

s (i.

e. b

reak

fast

cer

eals

, yog

urts

, sna

cks

and

refri

gera

ted/

froze

n m

eals

), it

emer

ged

that

, ove

r the

200

8–20

12 p

erio

d, s

ugar

con

tent

has

eith

er fa

llen

or

rem

aine

d un

chan

ged

in a

ll fiv

e ca

tego

ries,

whi

le s

odiu

m c

onte

nt w

as g

radu

ally

redu

ced

in

four

cat

egor

ies.

By

cont

rast

, sat

urat

ed fa

t con

tent

has

incr

ease

d by

sta

tistic

ally

sig

nific

ant

amou

nts

in t

he f

our

food

cat

egor

ies

that

con

tain

fat

in m

eani

ngfu

l qua

ntiti

es. R

epor

tedl

y, th

ese

cont

radi

ctor

y tre

nds

supp

ort t

he c

onte

ntio

n th

at p

olic

ies

focu

sing

on

redu

cing

a s

ingl

e nu

trien

t (su

ch a

s sa

lt) m

ay n

ot le

ad to

ove

rall

heal

thie

r pro

duct

s as

food

man

ufac

ture

rs m

ay

com

pens

ate

for d

eter

iora

tion

in ta

ste

by in

crea

sing

leve

ls o

f oth

er n

utrie

nts

(suc

h as

fat).

As

for

trans

fatty

aci

ds, t

he s

tudy

sug

gest

s th

at n

ew fe

dera

l lab

ellin

g re

gula

tions

and

die

tary

gu

idel

ines

hav

e eff

ectiv

ely

redu

ced

the

trans

fat

con

tent

of

US

food

pro

duct

s. C

laim

s by

so

me

rese

arch

ers

that

tran

s fa

ts h

ave

for t

he m

ost p

art b

een

repl

aced

by

satu

rate

d fa

ts a

re

not c

orro

bora

ted

by th

e st

udy.

217

FOO

D ST

ANDA

RDS

& FO

OD

SAFE

TY

POLI

CIE

S

Glo

bal

July

Fish

oil,

ve

geta

ble

oils

, an

imal

fat

The W

TO/F

AO C

odex

Alim

enta

rius C

omm

issi

on is

sued

its fir

st st

anda

rd fo

r fish

oil.

The

det

aile

d st

anda

rd, w

hich

app

lies

to fi

sh o

il in

tend

ed fo

r hum

an c

onsu

mpt

ion,

incl

udes

pro

visi

ons

for

diffe

rent

iatin

g ce

rtain

wild

orig

in fi

sh o

ils fr

om t

heir

farm

ed c

ount

erpa

rts. T

he C

omm

issi

on

com

mitt

ed to

mon

itorin

g th

e ap

plic

atio

n of

the

new

sta

ndar

d w

ith re

spec

t to

oil a

uthe

ntic

ity

and

trace

abilit

y (in

par

ticul

ar re

gard

ing

fatty

aci

d pr

ofile

s) a

nd to

impl

icat

ions

for t

rade

. The

C

omm

issi

on a

lso

delib

erat

ed o

n m

odifi

catio

ns t

o a

num

ber

of e

xist

ing

or d

raft

stan

dard

s co

ncer

ning

oilc

rops

and

der

ived

pro

duct

s, v

iz.:

the

stan

dard

for o

live

oils

and

oliv

e po

mac

e oi

ls;

the

stan

dard

for f

at s

prea

ds a

nd b

lend

ed s

prea

ds;

the

stan

dard

s fo

r bot

h na

med

and

un

spec

ified

veg

etab

le o

ils (c

once

rnin

g, s

peci

fical

ly, g

roun

dnut

oil,

ric

e br

ain

oil,

high

-ole

ic

palm

oil,

virg

in p

alm

oil,

cru

de p

alm

kern

el o

il, s

unflo

wer

seed

oil,

flax

seed

oil

and

sele

cted

fru

it/tre

enut

oils

); th

e As

ian

stan

dard

s fo

r tem

pe a

nd n

on-fe

rmen

ted

soyb

ean

prod

ucts

; an

d th

e Af

rican

sta

ndar

d fo

r unr

efine

d sh

ea b

utte

r.

218

FEED

STA

NDA

RDS

Can

ada

May

Cam

elin

a oi

lC

anad

a’s F

ood

Insp

ectio

n Ag

ency

(CFI

A) ap

prov

ed th

e use

of m

echa

nica

lly ex

tract

ed ca

mel

ina

oil a

s a

feed

ingr

edie

nt fo

r far

med

fish

. Cam

elin

a oi

l is v

iew

ed a

s a

cost

-effe

ctiv

e re

plac

emen

t of

wild

-sou

rced

fish

oils

in a

quac

ultu

re fe

ed. T

he a

ppro

val p

aves

the

way

for c

amel

ina

sativ

a to

ser

ve a

s a

new

rot

atio

n op

tion

for

pota

to fa

rmer

s in

Mar

itim

e C

anad

a. In

rec

ent

year

s,

cam

elin

a sa

tiva

star

ted

attra

ctin

g in

tere

st in

the

EU, t

he U

nite

d St

ates

and

Can

ada

due

to th

e su

itabi

lity

of it

s oi

l for

a v

arie

ty o

f use

s, in

clud

ing

as fe

edst

ock

in th

e pr

oduc

tion

of ro

ad a

nd

avia

tion

biof

uel (

see

also

MPP

U A

pr.’1

3, F

eb.’1

4, F

eb.’1

5, F

eb./J

une’

16 &

Feb

.’17)

.

Oilcrops complex: Policy changes and industry measures - Annual compendium 2017 39

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

219

FEED

STA

NDA

RDS

Japa

n M

ayO

ilmea

lsTh

e Ja

pane

se G

over

nmen

t cle

ared

a p

ropo

sal t

o pe

rmit

mix

ing

sele

cted

oilm

eals

with

feed

m

aize

in th

e pr

oduc

tion

of c

ompo

und

feed

. In

the

past

, mai

ze c

ould

onl

y be

mix

ed w

ith a

nim

al

prot

ein

such

as

fishm

eal.

220

GM

O P

OLI

CIE

SAr

gent

ina

Nov

embe

rSo

ybea

nsAr

gent

ina’

s Ag

ricul

tura

l Min

istry

has

app

rove

d th

e us

e of

gen

etic

ally

mod

ified

soy

bean

see

d ‘S

YN-0

00H

2-5’

. The

new

var

iety

is re

sist

ant t

o he

rbic

ides

oth

er th

an g

lyph

osat

e –

a ke

y tra

it,

cons

ider

ing

grow

ing

resi

stan

ce o

f wee

ds a

gain

st g

lyph

osat

e.

221

GM

O P

OLI

CIE

SAu

stra

liaJu

neRa

pese

edIn

the

Parli

amen

t of W

est A

ustra

lia, a

pet

ition

was

file

d ca

lling

on th

e St

ate

Gov

ernm

ent t

o co

mpe

nsat

e fa

rmer

s w

hen

GM

-rap

esee

d co

ntam

inat

ion

caus

es th

em to

lose

thei

r GM

-free

or

org

anic

cer

tifica

tion.

Acc

ordi

ng t

o th

e m

otio

n, G

M c

onta

min

atio

n ca

n cr

eate

sig

nific

ant

econ

omic

loss

es o

r ext

ra c

osts

, bec

ause

GM

-rap

esee

d or

rape

seed

tain

ted

with

GM

mat

eria

l co

mm

and

low

er p

rices

per

tonn

e on

wor

ld m

arke

ts. A

lthou

gh c

ultiv

atio

n of

GM

-rap

esee

d ha

s be

en a

llow

ed in

thre

e Au

stra

lian

Stat

es (c

ompr

isin

g W

est A

ustra

lia),

the

coun

try re

mai

ns th

e w

orld

’s le

adin

g su

pplie

r of G

M-fr

ee ra

pese

ed –

incl

udin

g to

the

lucr

ativ

e EU

mar

ket (

see

also

M

PPU

Jun

e’14

, Nov

.’15

& Se

p.’1

6).

222

GM

O P

OLI

CIE

SC

anad

aM

ayG

M fo

odTh

e C

anad

ian

Parli

amen

t vot

ed a

gain

st a

priv

ate

mem

ber’s

bill

callin

g fo

r man

dato

ry la

bellin

g of

gen

etic

ally

mod

ified

foo

ds.

The

deba

te in

Can

ada

follo

ws

last

yea

r’s p

assa

ge,

in t

he

Uni

ted

Stat

es,

of a

bill

intro

duci

ng m

anda

tory

GM

-labe

lling

over

a t

hree

-yea

r pe

riod

(see

M

PPU

Aug

.’16)

.

223

GM

O P

OLI

CIE

SC

hina

Janu

ary

Soyb

ean

Chi

na h

as g

rant

ed im

port

appr

oval

for B

alan

ce G

T, a

new

soy

bean

var

iety

cha

ract

erize

d by

to

lera

nce

to b

oth

glyp

hosa

te a

nd is

oxafl

utol

e-ba

sed

herb

icid

es. C

hina

’s ap

prov

al fo

llow

s th

e im

port

auth

oriza

tions

pro

vide

d by

Can

ada,

the

Euro

pean

Uni

on a

nd th

e U

nite

d St

ates

(see

al

so M

PPU

Aug

.’16)

. How

ever

, Bal

ance

GT

will

not b

e co

mm

erci

ally

ava

ilabl

e un

til B

alan

ce

Bean

, the

her

bici

de s

peci

fical

ly d

evel

oped

for u

se o

n th

e ne

w s

oybe

an v

arie

ty, h

as re

ceiv

ed

the

requ

ired

regu

lato

ry a

ppro

val b

y th

e U

nite

d St

ates

Env

ironm

enta

l Pro

tect

ion

Agen

cy.

224

GM

O P

OLI

CIE

SC

hina

May

Soyb

ean

As p

art o

f rec

ent t

rade

neg

otia

tions

bet

wee

n C

hina

and

the

Uni

ted

Stat

es, C

hina

agr

eed

to

acce

lera

te t

he e

valu

atio

n of

eig

ht U

S-de

velo

ped

gene

tical

ly m

odifi

ed c

rops

, inc

ludi

ng t

wo

soyb

ean

varie

ties.

Pen

ding

the

Chi

nese

aut

horit

ies’

impo

rt ap

prov

al,

the

conc

erne

d se

ed

com

pani

es o

pted

to d

elay

the

new

var

ietie

s’ c

omm

erci

al re

leas

e.

225

GM

O P

OLI

CIE

SC

hina

June

GM

cro

psC

hina

’s M

inis

try o

f Agr

icul

ture

rene

wed

impo

rt ap

prov

als

for 1

4 G

MO

cro

ps a

nd a

ppro

ved

two

new

GM

O c

rops

, as

the

coun

try a

ccel

erat

ed it

s ev

alua

tion

of G

M-p

rodu

cts

unde

r bro

ader

eff

orts

to p

rom

ote

econ

omic

and

trad

e tie

s w

ith th

e U

nite

d St

ates

(see

MPP

U J

une’

17).

In

Chi

na, t

he p

lant

ing

of G

M fo

od c

rops

rem

ains

pro

hibi

ted,

but

GM

O im

ports

are

allo

wed

for

use

in th

e co

untry

’s an

imal

feed

indu

stry

. The

rece

nt a

ppro

vals

, whi

ch a

re v

alid

for a

thre

e-ye

ar

perio

d la

stin

g un

til 2

020,

incl

ude

thre

e da

ted

rape

seed

var

ietie

s, fo

ur d

ated

soy

bean

var

ietie

s an

d on

e ne

w s

oybe

an v

arie

ty (

Mon

sant

o’s

“Vis

tive

Gol

d”).

Anot

her

new,

US-

deve

lope

d so

ybea

n va

riety

, Dow

Agro

Scie

nces

’ “En

list”

, is

still

awai

ting

appr

oval

.

226

GM

O P

OLI

CIE

SEu

rope

an U

nion

Dece

mbe

rO

ilsee

dsTh

e Eu

rope

an C

omm

issi

on a

utho

rized

five

new

GM

oils

eed

varie

ties

for

food

/feed

use

, co

mpr

isin

g fo

ur s

oybe

an a

nd o

ne r

apes

eed

varie

ties.

The

aut

horiz

atio

ns,

whi

ch e

xclu

de

culti

vatio

n, w

ill be

val

id fo

r 10

year

s. A

ll pr

oduc

ts d

eriv

ed fr

om th

e G

MO

s w

ill be

sub

ject

to

the

bloc

’s la

bellin

g an

d tra

ceab

ility

rule

s.

40 Oilcrops complex: Policy changes and industry measures - Annual compendium 2017

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

227

GM

O P

OLI

CIE

SIn

dia

May

Mus

tard

see

dTh

e G

enet

ic E

ngin

eerin

g Ap

prov

al C

omm

ittee

(GEA

C) o

f Ind

ia’s

Envi

ronm

ent M

inis

try b

acke

d th

e co

mm

erci

al u

se o

f an

indi

geno

usly

dev

elop

ed G

M m

usta

rd s

eed.

Las

t yea

r, G

EAC

alre

ady

prov

ided

its

tech

nica

l cle

aran

ce, f

ollo

win

g fa

vour

able

cro

p tri

als

and

safe

ty te

sts

(see

MPP

U

Sep.

’16)

. Pen

ding

the

final

app

rova

l by

the

Fede

ral G

over

nmen

t, th

e pr

oduc

t cou

ld b

ecom

e th

e co

untry

’s fir

st G

M fo

od c

rop

clea

red

for c

omm

erci

al p

rodu

ctio

n (s

ee a

lso M

PPU

Mar

.’15)

.

228

GM

O P

OLI

CIE

SIn

dia

Sept

embe

rO

ilsee

ds,

mus

tard

see

dIn

dian

min

istry

offi

cial

s in

form

ed t

hat

the

Gov

ernm

ent’s

fina

l dec

isio

n w

ith r

espe

ct t

o th

e co

mm

erci

al r

elea

se o

f G

M o

ilsee

ds –

not

ably

of

a lo

cally

dev

elop

ed m

usta

rdse

ed v

arie

ty

– re

mai

ned

pend

ing

(see

also

MPP

U S

ep.’1

6). R

epor

tedl

y, th

e G

over

nmen

t re

quire

s m

ore

time

to e

xam

ine

vario

us e

xper

t st

udie

s, in

clud

ing

(i) n

ew in

form

atio

n su

bmitt

ed b

y G

EAC

, th

e m

inis

teria

l Gen

etic

Eng

inee

ring

Appr

aisa

l Com

mitt

ee,

and

(ii) a

rep

ort

prep

ared

by

a pa

rliam

enta

ry c

omm

ittee

, whi

ch fl

agge

d al

lege

d ga

ps in

the

Gov

ernm

ent’s

eva

luat

ion

proc

ess.

In

the

mea

ntim

e, a

not

e re

leas

ed b

y In

dia’

s N

atio

nal

Acad

emy

of A

gric

ultu

ral

Scie

nces

un

derli

ned

the

impo

rtanc

e of

GM

oils

eed

varie

ties

for p

rodu

ctio

n an

d fa

rm in

com

e gr

owth

in

the

coun

try.

229

GM

O P

OLI

CIE

SM

exic

oJa

nuar

yG

M c

rops

The

Gov

ernm

ent o

f Mex

ico

invi

ted

publ

ic c

omm

ents

on

a pl

an to

intro

duce

new

ass

essm

ent

crite

ria g

over

ning

the

expe

rimen

tal r

elea

se o

f GM

Os,

suc

h as

mai

ze, s

oybe

ans

and

othe

r GM

cr

ops

or a

nim

als.

230

GM

O P

OLI

CIE

SM

exic

oN

ovem

ber

Soyb

ean

Mex

ico’

s phy

tosa

nita

ry ag

ency

(SEN

ASIC

A) d

ecid

ed to

revo

ke th

e per

mis

sion

to co

mm

erci

alize

ge

netic

ally

mod

ified

soy

bean

see

d ‘M

ON

-043

2-6’

, fol

low

ing

the

varie

ty’s

dete

ctio

n in

are

as

whe

re it

s cu

ltiva

tion

was

not

per

mitt

ed.

231

GM

O P

OLI

CIE

STu

rkey

Augu

stSo

ybea

n Tu

rkey

’s Bi

osaf

ety

Boar

d ha

s ap

prov

ed th

e im

porta

tion

of th

ree

gene

tical

ly m

odifi

ed s

oybe

an

varie

ties

and

thei

r pro

duct

s fo

r fee

d us

e, ra

isin

g th

e to

tal n

umbe

r of a

ppro

ved

GM

soy

eve

nts

to te

n. F

or a

noth

er tw

o G

M v

arie

ties

appr

oval

rem

ains

pen

ding

.

232

GM

O P

OLI

CIE

SU

nite

d St

ates

Janu

ary

GM

cro

psU

SDA’

s An

imal

Pla

nt H

ealth

Insp

ectio

n Se

rvic

e (A

PHIS

) pro

pose

d to

rev

ise

its r

egul

atio

ns

rega

rdin

g th

e im

porta

tion,

int

erst

ate

mov

emen

t an

d en

viro

nmen

tal

rele

ase

of G

MO

s.

The

prop

osed

revi

sion

s ar

e m

eant

to (i

) refl

ect a

dvan

ces

in g

enet

ic e

ngin

eerin

g as

wel

l as

past

im

plem

enta

tion

expe

rienc

e, a

nd (

ii) re

duce

the

bur

den

on r

egul

ated

ent

ities

. In

the

U

nite

d St

ates

, APH

IS is

resp

onsi

ble

for r

evie

win

g G

M c

rops

to d

eter

min

e w

heth

er th

ey p

ose

risks

to d

omes

tic a

gric

ultu

re. T

he p

ropo

sed

new

rule

will

rem

ain

open

for c

omm

ent u

ntil

19

May

201

7.

233

GM

O P

OLI

CIE

SU

nite

d St

ates

Nov

embe

rG

M c

rops

The

U.S

. Ani

mal

and

Pla

nt H

ealth

Insp

ectio

n Se

rvic

e (A

PHIS

), de

cide

d to

with

draw

a c

hang

e to

its

biot

echn

olog

y re

gula

tions

put

for

war

d ea

rlier

thi

s ye

ar (

see

MPP

U F

eb.’1

7).

APH

IS

is r

espo

nsib

le f

or r

evie

win

g G

M c

rops

to

dete

rmin

e w

heth

er t

hey

pose

ris

ks t

o do

mes

tic

agric

ultu

re. T

he m

odifi

catio

ns th

e ag

ency

had

pro

pose

d re

pres

ente

d a

maj

or c

hang

e fro

m

APH

IS’ e

xist

ing

‘regu

late

firs

t/ana

lyze

late

r’ ap

proa

ch t

o on

e th

at e

ntai

led

asse

ssin

g ris

ks

first

and

the

n re

gula

ting

orga

nism

tha

t di

d pr

esen

t ris

ks. R

epor

tedl

y, af

ter

rece

ivin

g m

any

com

men

ts o

bjec

ting

to th

e sc

ope

of th

e pr

opos

ed c

hang

e, A

PHIS

dec

ided

to re

-eng

age

with

st

akeh

olde

rs to

det

erm

ine

the

mos

t effe

ctiv

e, s

cien

ce-b

ased

app

roac

h fo

r reg

ulat

ing

GM

O

prod

ucts

whi

le p

rote

ctin

g pl

ant h

ealth

.

Oilcrops complex: Policy changes and industry measures - Annual compendium 2017 41

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

234

OTH

ER P

OLI

CIE

S –

Prod

uctio

n su

stai

nabi

lity

Euro

pean

Uni

onM

ayPa

lm o

il-ba

sed

biod

iese

lTh

e Eu

rope

an P

arlia

men

t pas

sed

a re

solu

tion

callin

g fo

r the

intro

duct

ion

of a

sin

gle

man

dato

ry

certi

ficat

ion

sche

me

for E

urop

e-bo

und

palm

oil,

in a

bid

to e

nsur

e th

at a

ll pa

lm o

il en

terin

g th

e bl

oc is

pro

duce

d in

an

envi

ronm

enta

lly a

nd s

ocia

lly s

usta

inab

le w

ay. T

o pr

even

t the

EU

’s re

new

able

fue

l tar

gets

fro

m in

adve

rtent

ly c

ontri

butin

g to

def

ores

tatio

n, t

he r

esol

utio

n al

so

reco

mm

ends

pha

sing

out

, by

2020

, the

use

of b

iofu

els

prod

uced

from

pal

m o

il an

d ot

her

vege

tabl

e oi

ls p

urpo

rtedl

y pr

oduc

ed i

n an

uns

usta

inab

le w

ay.

Repo

rtedl

y, th

e re

solu

tion

was

influ

ence

d by

the

obs

erva

tion

that

the

cer

tifica

tion

sche

mes

cur

rent

ly in

use

– s

uch

as t

he in

depe

nden

t Ro

undt

able

on

Sust

aina

ble

Palm

oil

(RSP

O) o

r th

e na

tiona

l sch

emes

in

trodu

ced

by In

done

sia

(ISPO

) and

Mal

aysi

a (M

SPO

) – d

o no

t enf

orce

bla

nket

ban

s on

fore

st

and

peat

land

cle

aran

ce. E

ssen

tially

, in

its n

on-b

indi

ng re

solu

tion

addr

esse

d to

the

Euro

pean

C

omm

issi

on, t

he P

arlia

men

t sug

gest

ed th

at o

nly

sust

aina

bly

prod

uced

pal

m o

il –

acco

rdin

g to

its

own

crite

ria –

sho

uld

ente

r the

blo

c. T

he m

otio

n fa

ced

stro

ng c

ritic

ism

from

pal

m o

il pr

oduc

ing

coun

tries

, whi

ch la

bele

d th

e in

itiat

ive

as d

iscr

imin

ator

y an

d pr

otec

tioni

st. L

ast y

ear,

the

EU im

porte

d ap

prox

imat

ely

7 m

illion

tonn

es o

f pal

m o

il, o

f whi

ch a

bout

hal

f was

use

d fo

r bi

odie

sel p

rodu

ctio

n. T

he b

loc

is th

e w

orld

’s se

cond

larg

est i

mpo

rter o

f pal

m o

il af

ter I

ndia

.

235

OTH

ER P

OLI

CIE

S –

Prod

uctio

n su

stai

nabi

lity

Fran

ceJu

lyPa

lm o

il Fr

ance

’s En

viro

nmen

t M

inis

try is

con

side

ring

to in

trodu

ce m

easu

res

rest

rictin

g th

e us

e of

pa

lm o

il in

bio

fuel

s, b

ased

on

the

alle

ged

prev

alen

ce o

f uns

usta

inab

le p

rodu

ctio

n m

etho

ds

in c

ount

ries

of o

rigin

. Det

ails

of p

ossi

ble

dom

estic

mea

sure

s ha

ve n

ot b

een

prov

ided

. Pas

t pr

opos

als

to in

trodu

ce –

als

o on

env

ironm

enta

l gro

unds

– a

sur

tax

on c

rude

pal

m o

il im

ports

de

stin

ed fo

r foo

d us

e fa

iled

to o

btai

n pa

rliam

enta

ry a

ppro

val (

see

MPP

U A

pr.’1

6).

236

OTH

ER P

OLI

CIE

S –

Prod

uctio

n su

stai

nabi

lity

Indo

nesi

aM

arch

Palm

oil

Indo

nesi

a re

new

ed h

er e

fforts

to im

plem

ent a

man

dato

ry n

atio

nal c

ertifi

catio

n sc

hem

es fo

r su

stai

nabl

y pr

oduc

ed p

alm

oil –

as

oppo

sed

to th

e w

idel

y us

ed v

olun

tary

cer

tifica

tion

thro

ugh

RSPO

, the

glo

bal,

inte

rnat

iona

lly re

cogn

ized

and

indu

stry

-bac

ked

stan

dard

set

ting

body

for

palm

oil.

In re

cent

yea

rs, t

he G

over

nmen

t of I

ndon

esia

has

bec

ome

incr

easi

ngly

con

cern

ed

that

RSP

O c

ould

pla

ce lo

cal s

take

hold

ers

in a

dis

adva

ntag

ed p

ositi

on, b

y (i)

impo

sing

ove

rly

strin

gent

requ

irem

ents

, (ii)

appl

ying

hig

h ce

rtific

atio

n co

sts,

and

(iii) p

ayin

g in

suffi

cien

t atte

ntio

n to

the

need

s of

sm

allh

olde

r oil p

alm

gro

wer

s. C

onse

quen

tly, I

ndon

esia

issu

ed a

sta

te-b

acke

d su

stai

nabi

lity

stan

dard

for p

alm

oil,

cal

led

Indo

nesi

an S

usta

inab

le P

alm

Oil

(ISPO

). To

dat

e,

how

ever

, int

erna

tiona

l acc

epta

nce

of In

done

sia’

s na

tiona

l sta

ndar

d re

mai

ned

low

– d

espi

te

effor

ts to

stre

amlin

e IS

PO w

ith R

SPO

(see

also

MPP

U J

une&

Aug.

’11,

May

’12,

Apr

.& D

ec.’1

3,

May

’14,

and

Mar

.’16)

. To

addr

ess

this

issu

e, in

Feb

ruar

y 20

17, I

ndon

esia

has

tak

en s

teps

to

gai

n th

e EU

’s re

cogn

ition

for

pal

m o

il pr

oduc

ed in

com

plia

nce

with

nat

iona

l law

s an

d re

gula

tions

. Re

porte

dly,

Indo

nesi

a is

wor

king

on

a sc

hem

e si

mila

r to

its

dom

estic

tim

ber

lega

lity

assu

ranc

e sy

stem

, whi

ch c

onfo

rms

fully

to th

e EU

cod

e on

For

est L

aw E

nfor

cem

ent

Gov

erna

nce

and

Trad

e (F

LEG

T). I

ndon

esia

and

the

EU a

re w

orki

ng o

n th

is in

itiat

ive

unde

r the

re

cent

ly e

stab

lishe

d W

orki

ng G

roup

on

Envi

ronm

ent a

nd C

limat

e C

hang

e.

42 Oilcrops complex: Policy changes and industry measures - Annual compendium 2017

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

237

OTH

ER P

OLI

CIE

S –

Prod

uctio

n su

stai

nabi

lity

Indo

nesi

aM

ayFo

rest

, pea

tland

Indo

nesi

a’s

Pres

iden

t app

rove

d a

two-

year

ext

ensi

on o

f a m

orat

oriu

m o

n is

suin

g ne

w lic

ense

s fo

r the

use

of l

and

desi

gnat

ed a

s pr

imar

y fo

rest

and

pea

tland

in th

e co

untry

(see

also

MPP

U

June

& A

ug.’1

6).

The

six-

year

-old

mor

ator

ium

was

sch

edul

ed t

o ex

pire

on

20 M

ay 2

017.

Ai

med

at

halti

ng d

efor

esta

tion

and

pollu

tion

resu

lting

fro

m f

ores

t fir

es,

the

mor

ator

ium

is

said

to c

once

rn a

tota

l of 6

6 m

illion

hec

tare

s. A

ccor

ding

to g

over

nmen

t offi

cial

s, th

e la

test

ex

tens

ion

give

s co

ncer

ned

auth

oriti

es m

ore

time

to im

prov

e ru

les

on f

ores

t an

d pe

atla

nd

gove

rnan

ce a

nd g

athe

r mat

eria

l to

man

age

licen

ses

mor

e eff

ectiv

ely.

A nu

mbe

r of c

ivil s

ocie

ty

grou

ps p

oint

ed o

ut th

at fo

rest

cov

er lo

sses

rem

aine

d hi

gh d

urin

g th

e pa

st s

ix y

ears

. Alle

gedl

y, du

ring

2014

–201

5, 1

.5 m

illion

ha

of fo

rest

cov

er w

ere

lost

. Fur

ther

mor

e, s

ome

NG

Os

clai

med

th

at th

e re

curre

nt o

utbr

eak

of fi

res

on fo

rest

land

and

dra

ined

pea

tland

was

to a

larg

e ex

tent

dr

iven

by

plan

tatio

n ex

pans

ions

in th

e oi

l pal

m, w

ood

and

pape

r sec

tors

. Whi

le g

over

nmen

t so

urce

s re

ckon

ed th

at s

ome

land

con

vers

ion

cont

inue

d du

e to

per

mis

sion

s is

sued

prio

r to

the

mor

ator

ium

, NG

O’s

stre

ssed

tha

t a

num

ber

of f

acto

rs c

ompr

omis

ed t

he m

orat

oriu

m’s

effec

tiven

ess,

not

ably

: i) e

nfor

cem

ent p

robl

ems

aris

ing

from

dec

entra

lized

dec

isio

n-m

akin

g;

ii) di

sput

es o

ver l

and

tenu

re; a

nd ii

i) th

e ci

rcum

stan

ce th

at th

e m

orat

oriu

m w

as is

sued

in th

e fo

rm o

f a p

resi

dent

ial i

nstru

ctio

n, w

hich

doe

s no

t ent

ail l

egal

con

sequ

ence

s fo

r per

petra

tors

. A

grou

p of

fore

stry

exp

erts

urg

ed t

hat

the

mor

ator

ium

on

perm

its b

e co

mpl

emen

ted

with

liv

elih

ood

prog

ram

mes

for

loca

ls t

o fa

cilit

ate

the

gene

ratio

n of

loca

l inc

ome

from

for

ests

w

ithou

t inv

olvi

ng c

onve

rsio

n.

238

OTH

ER P

OLI

CIE

S –

Prod

uctio

n su

stai

nabi

lity

Indo

nesi

aJu

lyO

il pa

lm

Indo

nesi

a’s

Envi

ronm

ent M

inis

ter

prop

osed

to tu

rn th

e co

untry

’s te

mpo

rary

mor

ator

ium

on

issu

ing

new

lice

nses

for

the

use

of la

nd d

esig

nate

d as

prim

ary

fore

st a

nd p

eatla

nd in

to a

pe

rman

ent b

an. I

n pl

ace

sinc

e 20

11, t

he m

orat

oriu

m h

as b

een

rene

wed

for a

third

tim

e –

until

M

ay 2

019

– ea

rlier

this

yea

r (se

e M

PPU

Jun

e’17

).

239

OTH

ER P

OLI

CIE

S –

Prod

uctio

n su

stai

nabi

lity

Indo

nesi

aAu

gust

Palm

oil

To d

ate

1.9

milli

on h

ecta

res

of o

il pa

lm p

lant

atio

ns –

i.e.

17

perc

ent

of t

he c

ount

ry’s

tota

l ar

ea u

nder

oil

palm

cul

tivat

ion

– ha

ve b

een

certi

fied

unde

r th

e In

done

sia

Sust

aina

ble

Palm

Oil

(ISPO

) st

anda

rd.

Laun

ched

with

the

sup

port

of t

he G

over

nmen

t in

201

1 an

d im

plem

ente

d on

a

man

dato

ry

basi

s si

nce

2015

, IS

PO

was

de

sign

ed

to

guar

ante

e th

e ad

optio

n of

co

mpr

ehen

sive

en

viro

nmen

tal

and

soci

al

stan

dard

s an

d en

sure

co

mpl

ianc

e of

pla

ntat

ions

with

nat

iona

l ru

les

and

regu

latio

ns.

(See

also

MPP

U A

pr.’1

7 on

eff

orts

to

ac

cele

rate

IS

PO’s

dom

estic

ad

optio

n an

d in

tern

atio

nal

reco

gniti

on.)

240

OTH

ER P

OLI

CIE

S –

Prod

uctio

n su

stai

nabi

lity

Mal

aysi

aM

arch

Palm

oil

Mal

aysi

a re

new

ed h

er e

fforts

to la

unch

a b

indi

ng n

atio

nal c

ertifi

catio

n sc

hem

e fo

r sus

tain

ably

pr

oduc

ed p

alm

oil

– as

opp

osed

to

the

wid

ely

used

vol

unta

ry c

ertifi

catio

n th

roug

h RS

PO,

the

glob

al, i

nter

natio

nally

rec

ogni

zed

and

indu

stry

-bac

ked

stan

dard

set

ting

body

for

palm

oi

l. Li

ke In

done

sia,

Mal

aysi

a ha

s be

com

e in

crea

sing

ly c

once

rned

tha

t RS

PO c

ould

pla

ce

loca

l sta

keho

lder

s in

a d

isad

vant

aged

pos

ition

, by

(i) im

posi

ng o

verly

stri

ngen

t req

uire

men

ts,

(ii) a

pply

ing

high

cer

tifica

tion

cost

s, a

nd (

iii) p

ayin

g in

suffi

cien

t at

tent

ion

to t

he n

eeds

of

smal

lhol

der

oil p

alm

gro

wer

s. C

onse

quen

tly, i

n 20

14, M

alay

sia

star

ted

deve

lopi

ng a

sta

te-

back

ed, v

olun

tary

sta

ndar

d kn

own

as M

SPO

or

Mal

aysi

an S

usta

inab

le P

alm

Oil

(see

also

M

PPU

May

/Jul

y/De

c./N

ov.’1

4 &

Aug.

’15)

. In

Febr

uary

201

7, g

over

nmen

t offi

cial

s ann

ounc

ed a

tim

elin

e fo

r the

sta

ndar

d’s

man

dato

ry a

pplic

atio

n: c

ompl

ianc

e w

ill be

impl

emen

ted

in s

tage

s,

with

RSP

O-c

ertifi

ed e

stat

es, n

on-c

ertifi

ed e

stat

es, a

nd s

mal

lhol

der g

row

ers

requ

ired

to o

btai

n M

SPO

cer

tifica

tion

by, r

espe

ctiv

ely,

31 D

ecem

ber

2018

, 30

June

201

9 an

d 31

Dec

embe

r 20

19. T

he m

easu

res

is a

imed

at m

akin

g M

SPO

a g

loba

lly re

cogn

ized

stan

dard

.

Oilcrops complex: Policy changes and industry measures - Annual compendium 2017 43

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

241

OTH

ER P

OLI

CIE

S –

Prod

uctio

n su

stai

nabi

lity

Mal

aysi

aM

ayPa

lm o

ilTh

e pr

inci

ples

and

crit

eria

for

MSP

O (

Mal

aysi

an S

usta

inab

le P

alm

Oil),

the

gov

ernm

ent-

back

ed s

usta

inab

ility

certi

ficat

ion

for o

il pa

lm th

at is

due

to b

ecom

e m

anda

tory

in M

alay

sia,

w

ill be

revi

sed

to m

ake

it m

ore

com

patib

le w

ith in

tern

atio

nal s

tand

ards

, acc

ordi

ng to

the

loca

l pr

ess.

Rep

orte

dly,

durin

g th

e ex

erci

se, c

are

will

be ta

ken

to k

eep

the

certi

ficat

ion

proc

ess

affor

dabl

e an

d ta

ilore

d to

the

spec

ific

need

s of

dom

estic

pro

duce

rs (s

ee a

lso M

PPU

Apr

.’17)

.

242

OTH

ER P

OLI

CIE

S –

Prod

uctio

n su

stai

nabi

lity

Mal

aysi

a,

Indo

nesi

a,

Euro

pean

Uni

on

July

Palm

oil-

base

d bi

odie

sel

The

Gov

ernm

ents

of M

alay

sia

and

Indo

nesi

a in

form

ed th

at th

ey w

ould

con

side

r cha

lleng

ing

at

WTO

leve

l pos

sibl

e mea

sure

s by t

he E

urop

ean U

nion

to re

stric

t pal

m o

il im

ports

on s

usta

inab

ility

grou

nds.

The

ann

ounc

emen

t is

rela

ted

to a

rece

nt re

solu

tion

by th

e Eu

rope

an P

arlia

men

t tha

t (i)

cal

ls fo

r man

dato

ry c

ertifi

catio

n of

all E

urop

e-bo

und

palm

oil,

and

(ii)

reco

mm

ends

pha

sing

-ou

t the

use

of b

iofu

els

mad

e fro

m p

alm

oil

and

othe

r veg

etab

le o

ils p

urpo

rtedl

y pr

oduc

ed in

an

uns

usta

inab

le w

ay (s

ee M

PPU

Jun

e’17

). M

eanw

hile

, the

two

coun

tries

agr

eed

to c

arry

out

a

join

t mis

sion

to E

urop

e to

eng

age

with

rele

vant

par

ties

and

stak

ehol

ders

, and

info

rmed

that

th

ey w

ere

read

y to

wor

k w

ith tr

ade

partn

ers

in a

ddre

ssin

g th

eir c

once

rns

over

sus

tain

abilit

y. Th

e tw

o go

vern

men

ts w

ill co

ordi

nate

thei

r act

ions

und

er th

e C

ounc

il of

Pal

m O

il Pr

oduc

ing

Cou

ntrie

s (C

POPC

), an

initi

ativ

e se

t up

by M

alay

sia

and

Indo

nesi

a to

sta

biliz

e pr

ices

thro

ugh

conc

erte

d ac

tions

on

prod

uctio

n an

d st

ocks

.

243

OTH

ER P

OLI

CIE

S –

Prod

uctio

n su

stai

nabi

lity

Mal

aysi

aAu

gust

Palm

oil

Gov

ernm

ent

offici

als

confi

rmed

tha

t ce

rtific

atio

n th

roug

h th

e M

alay

sian

Sus

tain

able

Pal

m

Oil

(MSP

O)

sche

me

will

beco

me

man

dato

ry f

or a

ll pa

lm o

il gr

ower

s by

end

201

9. T

he

MSP

O s

tand

ard

was

dev

elop

ed to

pro

mot

e th

e ad

optio

n of

bes

t pra

ctic

es o

n su

stai

nabi

lity

thro

ugho

ut th

e su

pply

cha

in, w

hile

con

form

ing

to d

omes

tic la

ws

and

regu

latio

ns a

nd ta

king

in

to a

ccou

nt t

he s

peci

fic n

eeds

of l

ocal

pro

duce

rs. T

o da

te a

bout

244

600

hec

tare

s of

oil

palm

– o

r 4.1

per

cent

of t

he c

ount

ry’s

tota

l are

a un

der o

il pa

lm –

hav

e un

derg

one

volu

ntar

ily

certi

ficat

ion,

invo

lvin

g m

ostly

larg

e es

tate

s ra

ther

than

sm

all g

row

ers.

Rec

ogni

zing

that

sm

all

prod

ucer

s –

who

con

tribu

te a

bout

40

perc

ent o

f the

cou

ntry

’s pa

lm o

il pr

oduc

tion

– st

rugg

le

to m

eet t

he c

osts

of c

ertifi

catio

n, th

e go

vern

men

t ann

ounc

ed th

at in

depe

nden

t and

org

anize

d sm

allh

olde

rs w

ill re

ceiv

e fin

anci

al in

cent

ives

. Rep

orte

dly,

the

Gov

ernm

ent d

ecid

ed to

set a

side

M

YR 1

30 m

illion

(USD

31

milli

on) t

o su

ppor

t som

e 65

0 00

0 sm

all g

row

ers

culti

vatin

g ar

ound

tw

o m

illion

hec

tare

s of

oil

palm

. Fur

ther

mor

e, th

e G

over

nmen

t ren

ewed

its

com

mitm

ent t

o pr

omot

e M

SPO

ove

rsea

s to

ens

ure

the

stan

dard

is a

ccep

ted

in in

tern

atio

nal m

arke

ts. (

See

also

MPP

U A

pr.’1

7 on

effo

rts t

o ac

cele

rate

MSP

O’s

dom

estic

ado

ptio

n an

d in

tern

atio

nal

reco

gniti

on.)

244

OTH

ER P

OLI

CIE

S –

Prod

uctio

n su

stai

nabi

lity

Mal

aysi

aSe

ptem

ber

Palm

oil

Rega

rdin

g th

e go

vern

men

t’s p

ledg

e to

sup

port

palm

oil

prod

ucer

s in

con

form

ing

to t

he

natio

nal s

tand

ard

for

sust

aina

ble

palm

oil,

or

MSP

O (s

ee M

PPU

Sep

.’17)

, min

istry

offi

cial

s in

form

ed th

at a

udit

cost

s w

ill be

sub

sidi

zed

at th

e fo

llow

ing

rate

s: 1

00 p

erce

nt fo

r sm

all o

il pa

lm g

row

ers,

i.e.

org

anize

d or

inde

pend

ent s

mal

lhol

ders

cul

tivat

ing

less

than

40.

46 h

ecta

res;

70

per

cent

for e

stat

es w

ith p

lant

ed a

rea

betw

een

40.5

and

1 0

00 h

ecta

res;

and

30

perc

ent f

or

esta

tes

abov

e 1

001

hect

ares

as

wel

l as

proc

essi

ng fa

cilit

ies

(incl

udin

g m

ills, r

efine

ries

and

crus

hers

).

44 Oilcrops complex: Policy changes and industry measures - Annual compendium 2017

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

245

OTH

ER P

OLI

CIE

S –

Prod

uctio

n su

stai

nabi

lity

Mal

aysi

aN

ovem

ber

Palm

oil

Earli

er th

is y

ear,

the

Gov

ernm

ent a

nnou

nced

that

it w

ould

fully

cov

er th

e au

dit f

ees

incu

rred

by o

il pa

lm s

mal

lhol

ders

cer

tifyi

ng t

heir

prod

uctio

n un

der

the

Mal

aysi

an S

usta

inab

le P

alm

O

il sc

hem

e (M

SPO

) –

the

stat

e-ba

cked

sta

ndar

d se

t to

bec

ome

man

dato

ry a

cros

s th

e in

dust

ry b

y en

d-20

19 (s

ee M

PPU

Sep

.’17)

. In

Oct

ober

, min

istry

offi

cial

s in

form

ed th

at a

lso

larg

er p

rodu

cers

and

pro

cess

ing

faci

litie

s ad

optin

g M

SPO

cer

tifica

tion

wou

ld re

ceiv

e fin

anci

al

supp

ort.

For

esta

tes

culti

vatin

g be

twee

n 40

and

1 0

00 h

ecta

res,

70

perc

ent

of a

udit

cost

w

ould

be

cove

red,

whi

le e

stat

es a

bove

1 0

01 h

ecta

res

as w

ell a

s cr

ushe

rs a

nd re

finer

s w

ould

be

cov

ered

at a

rate

of 3

0 pe

rcen

t. In

the

mea

ntim

e, th

e G

over

nmen

t con

tinue

d pu

rsui

ng it

s eff

orts

to o

btai

n in

tern

atio

nal a

ccep

tanc

e of

the

stan

dard

, und

erlin

ing

that

MSP

O-c

ertifi

ed

palm

oil

is p

rodu

ced

“bal

anci

ng th

e ne

eds

of p

eopl

e, p

rofit

and

pla

net”

.

246

OTH

ER P

OLI

CIE

S –

Prod

uctio

n su

stai

nabi

lity

Mal

aysi

aN

ovem

ber

Palm

oil

The

coun

try’s

MSP

O s

tand

ard

will

be re

view

ed n

ext y

ear t

o st

reng

then

it a

nd b

ring

it m

ore

in l

ine

with

glo

bally

acc

epte

d no

rms,

the

Mal

aysi

an P

alm

Oil

Cer

tifica

tion

Cou

ncil

said

. Re

porte

dly,

new

dev

elop

men

ts c

once

rnin

g gr

eenh

ouse

gas

em

issi

ons

and

carb

on s

avin

gs

war

rant

suc

h re

view

.

247

OTH

ER P

OLI

CIE

S –

Prod

uctio

n su

stai

nabi

lity

Mal

aysi

aN

ovem

ber

Palm

oil

Acco

rdin

g to

loca

l pre

ss re

ports

, the

Mal

aysi

an s

tate

of S

abah

inte

nds

to p

roce

ed w

ith it

s ow

n pa

lm o

il ce

rtific

atio

n st

rate

gy –

whi

le th

e fe

dera

l Gov

ernm

ent m

oves

ahe

ad w

ith n

atio

nwid

e im

plem

enta

tion

of t

he M

SPO

sta

ndar

d. R

epor

tedl

y, Sa

bah’

s St

ate

Cab

inet

opt

ed f

or t

he

intro

duct

ion

of ju

risdi

ctio

nal c

ertifi

catio

n at

sta

te le

vel b

ack

in 2

015,

i.e.

bef

ore

MSP

O w

as

laun

ched

. Und

er th

e lo

cal p

olic

y, al

l pal

m o

il pr

oduc

ed w

ithin

the

stat

e is

requ

ired

to u

nder

go

– ov

er th

e 20

15–2

025

perio

d –

sust

aina

bilit

y ce

rtific

atio

n. T

he p

rogr

amm

e’s

thre

e m

ain

goal

s ar

e i)

to a

chie

ve z

ero

loss

of

high

con

serv

atio

n va

lue

and

high

car

bon

stoc

k ar

eas,

ii) t

o ex

clud

e so

cial

con

flict

, and

iii)

to im

prov

e sm

allh

olde

r sus

tain

abilit

y.

248

OTH

ER P

OLI

CIE

S –

Prod

uctio

n su

stai

nabi

lity

Nor

way

June

Palm

oil-

base

d bi

odie

sel

A re

solu

tion

pass

ed b

y th

e N

orw

egia

n Pa

rliam

ent c

alls

on

the

coun

try’s

Gov

ernm

ent t

o ta

ke

step

s to

end

– o

n en

viro

nmen

tal g

roun

ds –

pub

lic p

rocu

rem

ent o

f pal

m o

il-ba

sed

biod

iese

l, w

hile

pro

mot

ing

the

use

of s

usta

inab

ly p

rodu

ced,

adv

ance

d bi

ofue

ls.

249

OTH

ER P

OLI

CIE

S –

Prod

uctio

n su

stai

nabi

lity

Peru

May

Oil

palm

Th

e Pe

ruvi

an G

over

nmen

t com

mitt

ed to

con

sult

indi

geno

us p

eopl

e (w

hich

typi

cally

do

not

poss

ess

reco

gnize

d le

gal r

ight

s ov

er t

heir

land

) pr

ior

to a

ppro

ving

oil

palm

pro

ject

s th

at

wou

ld a

ffect

the

m. R

epor

tedl

y, th

e te

rrito

ries

earm

arke

d fo

r oi

l pal

m e

xpan

sion

und

er t

he

Gov

ernm

ent’s

201

6–20

25 d

evel

opm

ent p

lan

incl

ude

at le

ast 1

3 in

dige

nous

com

mun

ities

.

250

OTH

ER P

OLI

CIE

S –

Con

sum

ptio

n ta

xes

Alge

riaM

arch

Soym

eal

Effec

tive

1 Ja

nuar

y 20

17, t

he v

alue

-add

ed ta

x on

sel

ecte

d gr

ain

and

feed

pro

duct

s –

incl

udin

g so

ybea

n m

eal (

all o

f whi

ch is

impo

rted)

– h

as b

een

rais

ed fr

om 7

per

cent

to 9

per

cent

. As

the

mea

sure

dire

ctly

affe

cts

sale

pric

es, t

he ta

x in

crea

se c

ould

slo

w d

own

Alge

ria’s

pace

of

soym

eal i

mpo

rts.

251

OTH

ER P

OLI

CIE

S –

Con

sum

ptio

n ta

xes

Chi

naM

ayO

ilsee

ds, o

ils,

mea

lsTh

e M

inis

try o

f Fin

ance

ann

ounc

ed a

redu

ctio

n in

the

valu

e-ad

ded

tax

on a

gric

ultu

ral g

oods

–

effec

tive

1 Ju

ly 2

017

– as

par

t of o

ngoi

ng re

form

s to

sim

plify

the

coun

try’s

tax

stru

ctur

e an

d st

imul

ate

dom

estic

con

sum

ptio

n. T

he m

easu

re w

ill ap

ply

to o

ilsee

ds a

nd o

ilsee

d pr

oduc

ts,

whe

ther

loca

lly p

rodu

ced

or im

porte

d.

252

OTH

ER P

OLI

CIE

S –

Con

sum

ptio

n ta

xes

Chi

naN

ovem

ber

Drie

d di

stille

rs

grai

nsC

hina

’s 11

-per

cent

val

ue-a

dded

tax

on im

ports

of D

DGs

(drie

d di

stille

rs g

rain

s w

ith s

olub

les)

w

ill be

rem

oved

on

20 D

ecem

ber.

Desp

ite th

e ta

riff e

limin

atio

n, a

resu

mpt

ion

of D

DGs

impo

rts

from

the

Uni

ted

Stat

es a

ppea

rs u

nlik

ely,

give

n th

at th

e an

ti-du

mpi

ng a

nd c

ount

erva

iling

dutie

s im

pose

d on

US-

orig

in D

DGs

will

rem

ain

in p

lace

(see

also

MPP

U F

eb.’1

7).

Oilcrops complex: Policy changes and industry measures - Annual compendium 2017 45

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

253

OTH

ER P

OLI

CIE

S –

Con

sum

ptio

n ta

xes

Indi

aJu

neO

ilsee

ds, m

eals

, oi

lsU

nder

Ind

ia’s

new

Goo

ds &

Sev

ices

Tax

, G

ST (

rolle

d ou

t on

1 J

uly

2017

), oi

lsee

ds a

nd

vege

tabl

e oi

ls fa

ll in

the

5 pe

rcen

t tax

cat

egor

y, bl

ende

d oi

l and

mar

garin

e at

tract

18

perc

ent

tax,

and

oilm

eals

are

tax

-exe

mpt

ed.

Esse

ntia

lly,

the

new

cla

ssifi

catio

n is

com

para

ble

to

that

app

lied

unde

r th

e pr

evio

us v

alue

-add

ed t

ax r

egim

e. H

owev

er,

the

coun

try’s

indu

stry

as

soci

atio

ns d

eman

ded

that

oils

eeds

be

mov

ed t

o th

e ze

ro t

ax b

rack

et –

aki

n to

oth

er

esse

ntia

l com

mod

ities

like

rice

, whe

at a

nd s

ugar

, whi

le b

lend

ed o

il an

d m

arga

rine

shou

ld b

e ta

xed

at 5

per

cent

.

254

OTH

ER P

OLI

CIE

S –

Con

sum

ptio

n ta

xes

Mal

awi,

East

/So

uthe

rn A

frica

Sept

embe

rVe

geta

ble

& an

imal

oils

/fats

In M

alaw

i, ve

geta

ble

and

anim

al o

ils/fa

ts a

nd t

heir

deriv

ed p

rodu

cts

have

bee

n ex

empt

ed

from

pay

ing

valu

e ad

ded

tax,

effe

ctiv

e 1

July

201

7. A

s a

resu

lt, re

fined

oils

/fats

will

no lo

nger

at

tract

VAT

at 1

6.5

perc

ent.

Aim

ed a

t pro

tect

ing

dom

estic

refin

ers

from

the

inflo

w o

f coo

king

oi

ls th

at d

o no

t und

ergo

val

ue a

dditi

on lo

cally

, the

mea

sure

is e

xpec

ted

to h

elp

the

indi

geno

us

edib

le o

il in

dust

ry g

row

and

dom

estic

oils

eed

prod

uctio

n ex

pand

. Re

porte

dly,

anal

ogou

s m

easu

res

are

in p

lace

in Z

imba

bwe,

the

Uni

ted

Repu

blic

of T

anza

nia,

Moz

ambi

que

and

the

Rep.

of S

outh

Afri

ca, w

hile

, in

Zam

bia,

the

edib

le o

il in

dust

ry re

peat

edly

cal

led

on th

e lo

cal

gove

rnm

ent t

o im

plem

ent a

sim

ilar p

olic

y (s

ee a

lso M

PPU

Aug

.’13)

.

255

OTH

ER P

OLI

CIE

S –

Soci

al p

olic

ies

Gha

naSe

ptem

ber

Palm

oil

As p

art

of a

new

ly la

unch

ed p

rogr

amm

e th

at o

ffers

fre

e ed

ucat

ion

at s

enio

r hi

gh s

choo

l le

vel,

the

Gha

naia

n G

over

nmen

t con

tract

ed th

e co

untry

’s as

soci

atio

n of

sm

all-s

cale

pal

m o

il pr

oduc

ers t

o su

pply

pal

m o

il (fo

r coo

king

oil u

se) t

o co

ncer

ned

scho

ols n

atio

nwid

e. R

epor

tedl

y, fa

rmer

s ar

e pr

epar

ing

to e

xpan

d oi

l pal

m c

ultiv

atio

n to

mee

t the

ant

icip

ated

incr

ease

in p

alm

oi

l dem

and.

256

OTH

ER P

OLI

CIE

S –

Tran

spor

t inf

rast

ruct

ure

Braz

il, C

hina

May

Soyb

ean

The

Gov

ernm

ents

of

Braz

il an

d C

hina

ann

ounc

ed t

he c

reat

ion

of a

n in

vest

men

t fu

nd f

or

infra

stru

ctur

e pr

ojec

ts.

The

fund

will

be v

alue

d at

USD

20

billio

n, w

ith B

razil

and

Chi

na

cont

ribut

ing,

resp

ectiv

ely,

one-

four

th a

nd th

ree-

four

ths

of th

e re

sour

ces.

Rep

orte

dly,

Chi

na

is e

ager

to

inve

st in

rai

lroad

, hig

hway

and

por

t pr

ojec

ts t

hat

coul

d lo

wer

the

cos

t of

raw

ag

ricul

tura

l pro

duct

s su

ch a

s so

ybea

ns b

eing

shi

pped

to

Chi

na.

One

suc

h pr

ojec

t is

the

‘F

erro

grão

’ (or

Gra

in R

ailw

ay) t

hat w

ould

con

nect

gra

in p

rodu

ctio

n re

gion

s in

nor

ther

n M

ato

Gro

sso

to M

iritit

uba,

a ri

ver p

ort i

n th

e Am

azon

Bas

in (s

ee a

lso M

PPU

Feb

. & A

ug.’1

6).

257

OTH

ER P

OLI

CIE

S –

Tran

spor

t inf

rast

ruct

ure

Braz

ilJu

neG

rain

s, o

ilsee

dsG

over

nmen

t offi

cial

s re

porte

d fu

rther

impr

ovem

ents

in B

razil

’s no

rther

n po

rt in

frast

ruct

ure.

In

rece

nt y

ears

, the

dev

elop

men

t of n

ew e

xpor

t cor

ridor

s in

the

coun

try’s

so-c

alle

d “A

rco

Nor

te”

regi

on (s

ee M

PPU

Aug

.’16)

attr

acte

d si

gnifi

cant

priv

ate

and

publ

ic f

undi

ng. B

ased

on

the

late

st in

vest

men

ts, i

ndus

try e

xper

ts e

stim

ate

toda

y’s c

ombi

ned

ship

men

t cap

acity

of p

orts

lo

cate

d al

ong

Braz

il’s n

orth

-Atla

ntic

coa

st a

t 40

milli

on m

etric

tonn

es o

f gra

ins

per y

ear,

with

pr

ojec

tions

for 2

025

poin

ting

to 6

4 m

illion

tonn

es. F

or m

arke

ting

year

201

7/18

, act

ual e

xpor

ts

via

the

new

exp

ort c

orrid

ors

have

bee

n pe

gged

at 2

7 m

illion

tonn

es (i

.e. 2

6 pe

rcen

t of B

razil

’s ag

greg

ate

mai

ze a

nd s

oybe

an p

rodu

ctio

n), w

hich

com

pare

s to

onl

y 7

milli

on m

etric

tonn

es

(or 1

6 pe

rcen

t of t

he c

ombi

ned

mai

ze/s

oy o

utpu

t) in

200

9/10

. Han

d in

han

d w

ith th

is in

crea

se,

a de

cong

estio

n in

shi

pmen

ts v

ia t

he t

radi

tiona

l sou

th-b

ound

rou

tes

has

been

obs

erve

d,

with

por

ts a

long

the

Bra

zil’s

sout

h-ea

st/s

outh

ern

coas

t gr

adua

lly s

hifti

ng t

heir

voca

tion

to

cont

aine

r tra

ffic

and

ship

men

ts o

f hig

her v

alue

-add

ed p

rodu

cts.

Rep

orte

dly,

in o

rder

to fu

lly

real

ize th

e po

tent

ial o

f the

new

nor

th-b

ound

exp

ort c

hann

els,

a n

umbe

r of r

oad

and

rail

links

re

mai

n to

be

com

plet

ed, p

ayin

g du

e at

tent

ion

to e

nviro

nmen

tal c

onsi

dera

tions

. Thi

s co

ncer

ns

in p

artic

ular

the

pavi

ng o

f 160

km

of h

ighw

ay B

R-16

3, th

e up

grad

ing

of h

ighw

ay B

R-36

4, a

nd

the

“Fer

rogr

ão” r

ailw

ay p

roje

ct (s

ee a

lso M

PPU

Jun

e’17

).

46 Oilcrops complex: Policy changes and industry measures - Annual compendium 2017

No.

Dom

ain

Cou

ntry

Mon

thPr

oduc

tD

escr

iptio

n *

258

OTH

ER P

OLI

CIE

S –

Tran

spor

t inf

rast

ruct

ure

Braz

ilJu

lyG

rain

s, o

ilsee

dsAc

cord

ing

to in

dust

ry s

ourc

es, p

rote

sts

alon

g Br

azilia

n hi

ghw

ay B

R-16

3 ha

ve a

ffect

ed th

e flo

w o

f gra

ins

and

oils

eeds

to th

e co

untry

’s no

rther

n po

rts. T

he h

ighw

ay li

nks

the

stat

e of

M

ato

Gro

sso

to M

iritit

uba,

the

bar

ge t

erm

inal

con

nect

ed w

ith t

he n

orth

-Atla

ntic

por

ts o

f Ba

rcar

ena

and

Sant

arém

. Acc

ordi

ng to

offi

cial

sou

rces

, the

rece

ntly

ope

ned

north

ern

expo

rt co

rrido

r was

exp

ecte

d to

abs

orb

arou

nd o

ne-fo

urth

of B

razil

’s ag

greg

ate

mai

ze a

nd s

oybe

an

prod

uctio

n in

201

7/18

(see

MM

PU J

uly’

17).

Repo

rtedl

y, th

e hi

ghw

ay w

as b

lock

ed b

y lo

cal

resi

dent

s, m

erch

ants

and

farm

ers

who

ask

ed fo

r inc

reas

ed a

cces

s to

the

regi

on’s

prot

ecte

d na

tiona

l for

est a

reas

.

259

OTH

ER P

OLI

CIE

S –

Tran

spor

t inf

rast

ruct

ure

Braz

ilAu

gust

Gra

ins,

oils

eeds

Braz

il’s T

rans

port

Min

istry

has

allo

cate

d th

e su

m o

f BRL

128

.5 m

illion

(USD

41.

2 m

illion

) for

pa

ving

65

km o

f hig

hway

BR-

163,

i.e.

the

last

unp

aved

stre

tch

of th

e ke

y ar

tery

that

link

s M

ato

Gro

sso

stat

e –

the

coun

try’s

Cen

tre-w

est g

rain

hub

– to

Bra

zil’s

new

ly o

pene

d po

rts

on th

e no

rth-A

tlant

ic c

oast

. Bas

ed o

n go

vern

men

t est

imat

es, u

pon

the

wor

ks’ c

ompl

etio

n,

Braz

il’s n

orth

ern

expo

rt co

rrido

r (or

“Arc

o N

orte

”) w

ould

abs

orb

arou

nd o

ne-fo

urth

of B

razil

’s ag

greg

ate

mai

ze a

nd s

oybe

an p

rodu

ctio

n (s

ee M

PPU

Jul

y’17

). In

dust

ry s

ourc

es,

on t

he

othe

r han

d, p

oint

ed to

the

need

for a

dditi

onal

inve

stm

ents

in th

e re

gion

’s in

frast

ruct

ure.

With

no

rthbo

und

ship

men

ts fr

om M

ato

Gro

sso

depe

ndin

g on

a s

ingl

e hi

ghw

ay, t

he li

kelih

ood

of

tem

pora

ry d

isru

ptio

ns re

mai

ns h

igh,

priv

ate

sour

ces

opin

ed (s

ee a

lso M

PPU

Aug

.’17)

.

260

OTH

ER P

OLI

CIE

S –

Tran

spor

t inf

rast

ruct

ure

Braz

ilN

ovem

ber

Gra

ins,

oils

eeds

With

a v

iew

to a

ddre

ss h

isto

rical

infra

stru

ctur

e bo

ttlen

ecks

, the

Gov

ernm

ent o

f Mat

o G

ross

o –

the

coun

try’s

lead

ing

grai

n-pr

oduc

ing

stat

e –

has

invi

ted

bids

for

the

con

stru

ctio

n an

d op

erat

ion

of n

ew ro

ads.

Initi

ally,

lice

nses

for t

hree

stre

tche

s of

road

s to

talin

g 52

5 km

will

be

awar

ded,

but

, by

the

end

of 2

018,

licen

ses

for a

tota

l of

3 12

5 km

are

exp

ecte

d to

be

gran

ted.

At

the

sam

e tim

e, th

e pr

ivat

e se

ctor

has

rene

wed

its

calls

to in

clud

e a

railr

oad

linki

ng M

ato

Gro

sso

with

por

ts in

the

Amaz

on B

asin

in th

e G

over

nmen

t’s in

frast

ruct

ure

inve

stm

ent p

lans

. Re

porte

dly,

the

prop

osed

railr

oad

(dub

bed

Gra

in R

ailw

ay o

r ‘Fe

rrogr

ão’)

wou

ld e

xten

d ov

er

1 14

2 km

(see

also

MPP

U J

uly

& Ju

ne’1

7).

261

OTH

ER P

OLI

CIE

S –

Tran

spor

t inf

rast

ruct

ure

Braz

ilDe

cem

ber

Gra

ins,

oils

eeds

Four

int

erna

tiona

l gr

ain

tradi

ng c

ompa

nies

are

con

side

ring

to s

ubm

it a

join

t bi

d fo

r th

e ‘F

erro

grão

’ gra

in ra

ilroa

d pr

ojec

t tha

t wou

ld li

nk M

ato

Gro

sso

stat

e w

ith tr

anss

hipm

ent p

orts

in

the

Amaz

on b

asin

(see

also

MPP

U J

uly

& De

c.’1

7). A

noth

er b

id is

like

ly to

com

e fro

m a

gr

oup

of C

hine

se s

tate

-ow

ned

firm

s (s

ee M

PPU

Jun

e ’1

7). T

otal

con

stru

ctio

n co

sts

for t

he

new

rail

line,

whi

ch w

ould

allo

w m

ovin

g ap

prox

imat

ely

42 m

illion

tonn

es o

f gra

ins

per y

ear,

have

bee

n es

timat

ed a

t BRL

14

billio

n (U

SD 4

.4 b

illion

), an

d co

ntra

ctor

s w

ould

be

awar

ded

a 65

-yea

r lic

ense

from

the

gove

rnm

ent t

o op

erat

e th

e ra

ilroa

d. T

he p

roje

ct is

sai

d to

face

loca

l op

posi

tion

from

indi

geno

us c

omm

uniti

es, s

ubsi

sten

ce fa

rmer

s an

d m

inin

g co

mpa

nies

.

* N

ote

that

for r

elat

ed h

isto

ric in

form

atio

n th

e re

ader

is d

irect

ed –

bet

wee

n br

acke

ts, i

n ita

lic p

rint –

to p

ast i

ssue

s of

the

Oilc

rops

Mon

thly

Pric

e an

d Po

licy

Upd

ate

(MPP

U),

whi

ch c

an b

e re

triev

ed

on-li

ne a

t http

://w

ww.

fao.

org/

econ

omic

/est

/pub

licat

ions

/oilc

rops

-pub

licat

ions

/mon

thly

-pric

e-an

d-po

licy-

upda

te/e

n/.

Oilcrops complex: Policy changes and industry measures - Annual compendium 2017 47

Tabl

e 3.

I

ndus

try

mea

sure

s an

d in

itiat

ives

repo

rted

in 2

017

No.

Dom

ain

Mon

thC

ount

ryD

escr

iptio

n *

1IN

DUST

RY S

TAN

DARD

S –

Sust

aina

ble

oil p

alm

Janu

ary

Indo

nesi

aRe

spon

sibl

e pr

oduc

tion

pled

ge:

An

Indo

nesi

an i

ndus

try g

roup

agr

eed

to s

top

clea

ring

fore

st u

ntil

sust

aina

bilit

y as

sess

men

ts c

an b

e m

ade

on 7

5 00

0 ha

of f

ores

t un

der

a pa

lm o

il co

nces

sion

in P

apua

Pr

ovin

ce. R

epor

tedl

y, th

e gr

oup

cons

ider

s fo

llow

ing

the

‘Hig

h C

arbo

n St

ock

Appr

oach

’ in

its a

sses

smen

ts,

whi

ch w

ould

impl

y usi

ng in

depe

nden

t ass

esso

rs, p

ublis

hing

the

resu

lts a

nd se

ekin

g in

depe

nden

t ver

ifica

tion

of c

ompl

ianc

e.

2IN

DUST

RY S

TAN

DARD

S –

Sust

aina

ble

oil p

alm

Janu

ary

Indo

nesi

aRe

spon

sibl

e so

urci

ng c

omm

itmen

ts:

Glo

bal c

onsu

mer

goo

ds c

ompa

ny U

nile

ver

info

rmed

tha

t it

will

adop

t a ju

risdi

ctio

nal a

ppro

ach

to p

alm

oil

sour

cing

by

pref

eren

tially

buy

ing

from

are

as th

at h

ave

in p

lace

co

mpr

ehen

sive

clim

ate

and

fore

st p

olic

ies.

Acc

ordi

ngly,

the

com

pany

has

sign

ed a

thre

e-ye

ar M

emor

andu

m

of U

nder

stan

ding

with

the

prov

inci

al g

over

nmen

t of C

entra

l Kal

iman

tan

(Indo

nesi

a) a

nd o

ther

loca

l par

tner

s to

pro

mot

e, a

t villa

ge le

vel,

sust

aina

ble

palm

oil p

rodu

ctio

n by

cer

tified

sm

allh

olde

rs. T

he n

ew fo

rm o

f pal

m

oil s

ourc

ing

is s

aid

to b

uild

on

clos

e pu

blic

-priv

ate

colla

bora

tion.

3IN

DUST

RY S

TAN

DARD

S –

Sust

aina

ble

oil p

alm

Janu

ary

Ivor

y C

oast

Cer

tifica

tion

assi

stan

ce:

In C

ôte

d’Iv

oire

, civ

il so

ciet

y gr

oup

Solid

arid

ad a

nd R

SPO

(the

wor

ld’s

lead

ing

indu

stry

-bac

ked

stan

dard

set

ting

body

for

pal

m o

il) w

ill jo

intly

im

plem

ent

a la

rge

grou

p ce

rtific

atio

n pr

ogra

mm

e ta

rget

ing

5 00

0 sm

allh

olde

rs. T

he th

ree-

year

pro

ject

is a

imed

at m

akin

g su

stai

nabl

e pr

oduc

tion

of p

alm

oil

the

norm

in th

e co

untry

. Côt

e d’

Ivoi

re is

Afri

ca’s

third

larg

est p

rodu

cer o

f pal

m o

il.

4IN

DUST

RY S

TAN

DARD

S –

Sust

aina

ble

oil p

alm

Janu

ary

Glo

bal

Resp

onsi

ble

lend

ing

polic

ies:

Env

ironm

enta

l adv

ocac

y gr

oups

con

tinue

pre

ssin

g in

tern

atio

nal b

anks

to

indu

ce o

il pal

m c

ompa

nies

to a

dopt

sus

tain

able

pro

duct

ion

prac

tices

(see

MPP

U A

pr.’1

6). A

repo

rt re

leas

ed

by G

reen

peac

e In

tern

atio

nal c

laim

s th

at o

ne o

f the

larg

est p

rovi

ders

of fi

nanc

ial s

ervi

ces

to th

e pa

lm o

il in

dust

ry p

rovi

ded

loan

s an

d ot

her fi

nanc

ial s

ervi

ces

to c

ompa

nies

that

alle

gedl

y ha

rmed

trop

ical

rain

fore

st,

infri

nged

labo

ur la

ws

and

disr

egar

ded

oper

atin

g lic

ense

s. B

y do

ing

so, t

he b

ank

is s

aid

to h

ave

brea

ched

its

ow

n co

rpor

ate

polic

y re

gard

ing

sust

aina

bilit

y in

fore

stry

and

agr

icul

tura

l pro

duct

ion,

incl

udin

g sp

ecifi

c se

ctio

ns o

n pa

lm o

il. T

he re

port,

whi

ch s

tate

s th

at a

lso

othe

r ba

nks’

lend

ing

activ

ities

are

pro

blem

atic

, ur

ges

bank

s an

d in

stitu

tiona

l inv

esto

rs to

act

ivel

y en

gage

with

pal

m o

il co

mpa

nies

on

corp

orat

e st

rate

gy

and

beha

viou

r prio

r to

agre

eing

to p

rovi

de n

ew (o

r ren

ew o

n-go

ing)

fina

ncia

l ser

vice

s.

5IN

DUST

RY S

TAN

DARD

S –

Sust

aina

ble

oil p

alm

Janu

ary

Glo

bal

Resp

onsi

ble

sour

cing

com

mitm

ents

: G

loba

l agr

i-bus

ines

s tra

der

Car

gill

repo

rted

on t

he c

ompa

ny’s

prog

ress

and

goa

ls re

gard

ing

defo

rest

atio

n an

d pl

edge

d to

pro

tect

fore

sts

in s

ix p

riorit

y su

pply

cha

ins,

in

clud

ing

palm

oil

and

soyb

ean.

The

com

pany

com

mitt

ed t

o im

plem

ent

spec

ific

actio

n pl

ans

and

offer

tra

inin

g pr

ogra

mm

es to

farm

ers

and

supp

liers

– in

clo

se c

olla

bora

tion

with

thei

r cus

tom

ers,

gov

ernm

ents

, N

GO

s an

d ot

her s

take

hold

ers.

6IN

DUST

RY S

TAN

DARD

S –

Sust

aina

ble

oil p

alm

Janu

ary

Glo

bal

Resp

onsi

ble

sour

cing

com

mitm

ents

: G

loba

l pro

duct

s an

d se

rvic

es c

ompa

ny D

uPon

t rep

orte

d th

at it

has

co

mpl

eted

its

switc

h to

100

% R

SPO

-cer

tified

sus

tain

able

pal

m o

il an

d pa

lm o

il de

rivat

ives

in it

s gl

obal

em

ulsi

fier p

rodu

ctio

n –

a pr

oces

s th

e co

mpa

ny s

tarte

d in

200

9. R

epor

tedl

y, th

e tra

nsiti

on w

as d

elay

ed b

y in

suffi

cien

t mar

ket d

eman

d an

d a

shor

tage

of c

erta

in c

ertifi

ed p

alm

oil d

eriv

ativ

es. N

ow th

e co

mpa

ny a

ims

to m

ove

from

sou

rcin

g its

pro

duct

s th

roug

h Bo

ok&C

laim

mec

hani

sms

to b

uyin

g th

roug

h ph

ysic

al s

uppl

y ch

ains

.

48 Oilcrops complex: Policy changes and industry measures - Annual compendium 2017

No.

Dom

ain

Mon

thC

ount

ryD

escr

iptio

n *

7IN

DUST

RY S

TAN

DARD

S –

Sust

aina

ble

oil p

alm

Mar

chM

alay

sia

Cer

tifica

tion

assi

stan

ce:

In M

alay

sia,

glo

bal a

gri-b

usin

ess

firm

Car

gill

join

ed fo

rces

with

a s

ocia

l soc

iety

gr

oup

to s

uppo

rt th

e in

clus

ion

of in

depe

nden

t oi

l pal

m s

mal

lhol

ders

in c

ertifi

catio

n. U

nder

the

pro

ject

, in

depe

nden

t gro

wer

s, d

eale

rs, m

ills a

nd re

finer

s ar

e pr

ovid

ed w

ith te

chni

cal a

ssis

tanc

e to

hel

p th

em a

dopt

re

spon

sibl

e an

d effi

cien

t pr

actic

es,

incr

ease

the

ir yi

elds

, an

d ob

tain

cer

tifica

tion.

Rep

orte

dly,

in t

otal

, 17

5 sm

allh

olde

r gro

wer

s ha

ve re

ceiv

ed R

SPO

cer

tifica

tion.

The

initi

ativ

e’s

long

-term

obj

ectiv

e is

to d

evel

op

a cr

itica

l mas

s of

sm

allh

olde

rs a

nd c

reat

e a

self-

sust

aini

ng g

roup

sch

eme

able

to p

rovi

de a

n un

inte

rrupt

ed

flow

of R

SPO

cer

tified

sus

tain

able

pal

m o

il.

8IN

DUST

RY S

TAN

DARD

S –

Sust

aina

ble

oil p

alm

Mar

chU

nite

d Ki

ngdo

mC

ertifi

catio

n –

Mar

ket

inci

denc

e:

Acco

rdin

g to

rec

ently

pub

lishe

d go

vern

men

t da

ta,

in t

he U

nite

d Ki

ngdo

m, a

nnua

l upt

ake

of R

SPO

-cer

tified

sus

tain

able

pal

m o

il alm

ost t

riple

d be

twee

n 20

09 a

nd 2

015

(see

al

so M

PPU

Dec

.’15)

. Out

of t

he 4

57 th

ousa

nd to

nnes

sou

rced

thro

ugh

RSPO

-bac

ked

supp

ly c

hain

mod

els

in 2

015,

abo

ut 3

26 th

ousa

nd to

nnes

wer

e se

greg

ated

and

mas

s-ba

lanc

ed p

alm

oil,

whi

lst B

ook&

Cla

im

certi

ficat

es a

ccou

nted

for

131

tho

usan

d to

nnes

. W

hile

pur

chas

es b

y fo

od m

anuf

actu

rers

and

ret

aile

rs

cons

iste

d al

mos

t ent

irely

of c

ertifi

ed p

alm

oil,

in th

e fo

od s

ervi

ce s

ecto

r, ce

rtifie

d pa

lm o

il ac

coun

ted

for

only

67

perc

ent o

f tot

al p

urch

ases

. Civ

il soc

iety

gro

ups u

rged

pol

icy m

aker

s to

stic

k to

the

targ

et o

f sou

rcin

g 10

0 pe

rcen

t cer

tified

pal

m o

il. In

add

ition

, the

y re

com

men

ded

to b

road

en th

at p

olic

y to

incl

ude

palm

oil

deriv

ativ

es a

nd p

alm

oil

in im

porte

d fin

ishe

d pr

oduc

ts.

9IN

DUST

RY S

TAN

DARD

S –

Sust

aina

ble

oil p

alm

Mar

chG

loba

lRe

spon

sibl

e so

urci

ng c

omm

itmen

ts:

Glo

bal

food

com

pany

Kra

ft H

einz

com

mitt

ed t

o ac

hiev

ing

a su

stai

nabl

e an

d tra

ceab

le p

alm

oil

supp

ly c

hain

. The

food

man

ufac

ture

r ple

dged

to s

ourc

e on

ly R

SPO

-ce

rtifie

d pa

lm o

il an

d to

regu

larly

repo

rt on

pro

gres

s. C

ivil

soci

ety

grou

ps p

oint

ed o

ut th

at th

e co

mpa

ny’s

polic

y la

cked

a ti

mel

ine

for i

mpl

emen

tatio

n. T

he g

ener

al q

uest

ion

whe

ther

RSP

O’s

curre

nt b

asic

prin

cipl

es

are

suffi

cien

tly s

tring

ent t

o pr

even

t uns

usta

inab

le p

ract

ices

com

plet

ely

was

als

o ra

ised

.

10IN

DUST

RY S

TAN

DARD

S –

Sust

aina

ble

oil p

alm

Mar

chG

loba

lRe

spon

sibl

e le

ndin

g po

licie

s:

Glo

bal l

endi

ng in

stitu

tion

HSB

C d

ecid

ed t

o re

view

its

loan

pol

icie

s fo

r th

e pa

lm o

il se

ctor

and

met

with

Gre

enpe

ace

to d

iscu

ss it

s re

ques

t to

adop

t stri

cter

sta

ndar

ds to

pro

tect

hi

gh-c

arbo

n-st

ock

(HC

S) fo

rest

s an

d pe

atla

nd (s

ee a

lso M

PPU

Feb

.’17)

. The

ban

k sa

id it

is o

pen

to ti

ghte

n its

pol

icie

s as

soc

iety

’s ex

pect

atio

ns c

hang

e an

d ne

w s

tand

ards

em

erge

. Its

elf a

mem

ber o

f RSP

O, t

he

bank

sai

d it

supp

orts

the

full

inco

rpor

atio

n of

the

HC

S C

onve

rgen

ce A

gree

men

t int

o RS

PO’s

stan

dard

s.

Mea

nwhi

le, H

SBC

has

exp

ande

d its

‘pro

hibi

ted

busi

ness

com

mitm

ent’,

mak

ing

it co

nsis

tent

with

the

‘No

defo

rest

atio

n, N

o Pe

at a

nd N

o Ex

ploi

tatio

n’ p

olic

ies

that

are

incr

easi

ngly

com

mon

in th

e pa

lm o

il su

pply

ch

ain.

HSB

C a

lso

pled

ged

to c

lose

its

rela

tions

hip

with

com

pani

es th

at d

o no

t com

ply

with

its

polic

ies.

The

ba

nk u

nder

lined

that

gro

wer

s, p

roce

ssor

s, c

onsu

mer

goo

d co

mpa

nies

and

ban

ks n

eed

to w

ork

toge

ther

m

ore

succ

essf

ully

to p

rom

ote

a su

stai

nabl

e pa

lm o

il sec

tor.

Gre

enpe

ace

cons

ider

ed H

SBC

’s in

itiat

ive

as a

n im

porta

nt fi

rst s

tep,

whi

ch s

ends

a c

lear

sig

nal t

o ot

her b

anks

to fo

llow

sui

t.

11IN

DUST

RY S

TAN

DARD

S –

Sust

aina

ble

oil p

alm

May

Col

ombi

aC

ertifi

catio

n ad

vanc

es:

A C

olom

bian

oil p

alm

gro

wer

has

bec

ome

the

first

pro

duce

r to

rece

ive

RSPO

-Nex

t ce

rtific

atio

n, a

vol

unta

ry a

dd-o

n m

odul

e la

unch

ed in

201

6 en

gagi

ng R

SPO

mem

bers

to e

xcee

d th

e bo

dy’s

basi

c su

stai

nabi

lity

stan

dard

, not

ably

with

rega

rd to

def

ores

tatio

n, p

eatla

nd d

evel

opm

ent a

nd in

dige

nous

pe

ople

s’ ri

ghts

(see

MPP

U J

uly’

15 &

Mar

.’16)

.

12IN

DUST

RY S

TAN

DARD

S –

Sust

aina

ble

oil p

alm

May

Sout

heas

t Asi

aPr

omot

ion

of s

usta

inab

le p

rodu

ctio

n: A

n in

tern

atio

nal c

onso

rtium

on

Sust

aina

ble

Agric

ultu

ral L

ands

cape

s in

Sou

thea

st A

sia

(SAL

SA) h

as b

een

laun

ched

in M

alay

sia

and

Indo

nesi

a. T

he f

ound

ing

mem

bers

are

Fr

ance

’s ag

ricul

tura

l res

earc

h ce

ntre

CIR

AD,

two

plan

tatio

n co

mpa

nies

, an

Indo

nesi

an p

lant

atio

n cr

op

rese

arch

net

wor

k an

d th

e As

ian

and

Paci

fic C

ocon

ut C

omm

unity

(APC

C).

The

over

all o

bjec

tive

of t

he

publ

ic-p

rivat

e pa

rtner

ship

is to

pro

mot

e su

stai

nabi

lity

and

deliv

er s

peci

alize

d tra

inin

g in

maj

or c

omm

odity

ch

ains

, inc

ludi

ng p

alm

oil.

Oilcrops complex: Policy changes and industry measures - Annual compendium 2017 49

No.

Dom

ain

Mon

thC

ount

ryD

escr

iptio

n *

13IN

DUST

RY S

TAN

DARD

S –

Sust

aina

ble

oil p

alm

May

Glo

bal

Cer

tifica

tion

adva

nces

: T

he g

loba

lly r

ecog

nize

d se

lf-re

gula

ting

indu

stry

bod

y fo

r pa

lm o

il, R

SPO

(R

ound

tabl

e on

Sus

tain

able

Pal

m O

il), h

as la

unch

ed th

e re

view

of i

ts s

tand

ards

– a

n ex

erci

se th

e bo

dy

cond

ucts

eve

ry fi

ve y

ears

, to

ensu

re th

at it

s cr

iteria

rem

ain

rele

vant

and

refle

ct s

take

hold

er u

nder

stan

ding

of

goo

d su

stai

nabi

lity p

ract

ices

. RSP

O e

xpec

ts to

ado

pt a

revi

sed

set o

f prin

cipl

es a

nd c

riter

ia b

y Nov

embe

r 20

18. R

epor

tedl

y, th

e re

visi

on w

ill fo

cus

on, i

nter

alia

, i) m

akin

g st

anda

rds

mor

e m

easu

rabl

e an

d ob

ject

ive,

ii)

the

incl

usio

n of

sm

allh

olde

rs, i

ii) de

fore

stat

ion;

iv) p

rodu

ct tr

acea

bilit

y, v)

hum

an a

nd la

bour

righ

ts, a

nd

vi) j

uris

dict

iona

l cer

tifica

tion

appr

oach

es (s

ee M

PPU

Jul

y’15

& N

ov.’1

6).

14IN

DUST

RY S

TAN

DARD

S –

Sust

aina

ble

oil p

alm

May

Glo

bal

Cer

tifica

tion

– co

mpl

ianc

e is

sues

: R

ecen

tly,

RSPO

has

tak

en a

ctio

n ag

ains

t sp

ecifi

c m

embe

rs f

or

alle

gedl

y vi

olat

ing

the

orga

niza

tion’

s co

des

of p

ract

ice.

In o

ne c

ase,

RSP

O c

laim

ed th

at a

mem

ber h

ad

viol

ated

com

mun

ity ri

ghts

by

not f

ollo

win

g th

e pr

oper

lega

l pro

cess

for o

btai

ning

land

from

an

indi

geno

us

grou

p, th

us re

com

men

ding

that

the

disp

uted

land

be

re-m

easu

red

for d

evel

opm

ent a

ppro

val w

ith b

ette

r co

mm

unity

par

ticip

atio

n, w

hile

the

com

pany

wou

ld re

nego

tiate

the

term

s fo

r pla

ntin

g oi

l pal

m o

n th

e la

nd.

In a

noth

er c

ase,

RSP

O c

laim

ed th

at a

mem

ber h

ad c

arrie

d ou

t defi

cien

t Hig

h C

onse

rvat

ion

Valu

e (H

CV)

as

sess

men

ts a

nd h

ad s

et a

side

inad

equa

te a

reas

to p

rote

ct H

CV

area

s, th

us re

ques

ting

the

conc

erne

d co

mpa

ny to

sus

pend

all

land

cle

arin

g op

erat

ions

. RSP

O a

lso

repr

oach

ed a

form

er m

embe

r for

its

alle

ged

dest

ruct

ion

of p

rimar

y fo

rest

. Civ

il so

ciet

y gr

oups

follo

win

g th

ese

disp

utes

vie

w th

em a

s im

porta

nt te

st

case

s fo

r RSP

O a

nd th

e or

gani

zatio

n’s

abilit

y to

uph

old

its o

wn

stan

dard

s an

d re

gula

tions

.

15IN

DUST

RY S

TAN

DARD

S –

Sust

aina

ble

oil p

alm

June

Col

ombi

aC

ertifi

catio

n as

sist

ance

: Em

ulat

ing

sim

ilar e

fforts

in th

e Asi

an co

ntin

ent,

glob

al ag

ri-bu

sine

ss fir

m C

argi

ll has

la

unch

ed a

pro

gram

me

aim

ed a

t pro

mot

ing

sust

aina

ble

palm

oil p

rodu

ctio

n in

Lat

in A

mer

ica.

In p

artn

ersh

ip

with

a lo

cal t

radi

ng c

ompa

ny a

nd a

n in

tern

atio

nal n

on-p

rofit

org

aniza

tion,

the

com

pany

pla

ns to

sup

port

480

oil p

alm

sm

allh

olde

rs in

Col

ombi

a ov

er a

2-y

ear p

erio

d. R

epor

tedl

y, pa

rtici

patin

g fa

rmer

s w

ill re

ceiv

e di

rect

trai

ning

and

sup

port

on g

ood

agric

ultu

ral p

ract

ices

and

impr

oved

farm

man

agem

ent t

echn

ique

s,

cove

ring

the

area

s of

hea

lth, s

afet

y, an

d en

viro

nmen

tal/s

ocia

l im

pact

man

agem

ent.

Whi

le p

artic

ipan

ts a

re

expe

cted

to g

ain

impr

oved

acc

ess

to th

e gl

obal

mar

ket t

hrou

gh th

e ad

optio

n RS

PO p

rinci

ples

and

crit

eria

, th

e in

itiat

ive

is a

lso

mea

nt to

sup

port

Car

gill’s

obj

ectiv

e of

set

ting

up it

s ow

n, fu

lly tr

acea

ble

and

sust

aina

ble

palm

oil

supp

ly c

hain

by

2020

.

16IN

DUST

RY S

TAN

DARD

S –

Sust

aina

ble

oil p

alm

June

Indo

nesi

aPr

oduc

tion

prac

tices

– c

ompa

ny lia

bilit

ies:

Indo

nesi

a’s

mai

n pa

lm o

il and

tim

ber a

ssoc

iatio

ns a

re s

eeki

ng,

via

a ju

dici

al re

view

, to

redu

ce th

eir l

iabi

lity

for fi

res

that

occ

ur o

n th

eir l

and,

and

to b

an s

lash

-and

-bur

n pr

actic

es b

y sm

all f

arm

ers.

The

initi

ativ

e is

link

ed to

ong

oing

dis

cuss

ions

ove

r who

bea

rs re

spon

sibi

lity

for

the

fires

that

occ

ur a

nnua

lly a

cros

s th

e co

untry

whe

n pe

atla

nd is

dra

ined

to d

evel

op o

il pa

lm a

nd ti

mbe

r pl

anta

tions

. Rep

orte

dly,

envi

ronm

enta

l and

soci

al a

dvoc

acy g

roup

s are

def

endi

ng th

e re

gula

tions

con

test

ed

by th

e in

dust

ry a

ssoc

iatio

ns, p

oint

ing

out t

hat,

as fa

r as

sm

all f

arm

ers

are

conc

erne

d, a

the

prop

osed

ban

on

trad

ition

al la

nd c

lear

ing

met

hods

wou

ld p

ose

thre

ats

to in

dige

nous

peo

ple

who

se li

velih

oods

dep

end

on a

gric

ultu

re.

50 Oilcrops complex: Policy changes and industry measures - Annual compendium 2017

No.

Dom

ain

Mon

thC

ount

ryD

escr

iptio

n *

17IN

DUST

RY S

TAN

DARD

S –

Sust

aina

ble

oil p

alm

June

Glo

bal

Glo

bal t

rade

in c

ertifi

ed p

rodu

ct:

The

Roun

dtab

le o

n Su

stai

nabl

e Pa

lm O

il (R

SPO

), th

e w

orld

’s pr

inci

pal

priv

ate

entit

y fo

r vol

unta

ry c

ertifi

catio

n of

sus

tain

ably

pro

duce

d pa

lm o

il, in

form

ed th

at p

hysi

cal s

ales

of

certi

fied

sust

aina

ble

palm

oil

have

see

n a

43 p

erce

nt ri

se in

the

first

five

mon

ths

of 2

017,

com

pare

d w

ith

the

sam

e pe

riod

last

yea

r. Re

porte

dly,

the

incr

ease

was

par

ticul

ar e

vide

nt w

ithin

the

‘iden

tity

pres

erve

d’ a

nd

‘mas

s ba

lanc

e’ s

uppl

y ch

ains

. By

cont

rast

, sal

es th

roug

h th

e ‘B

ook&

Cla

im’ c

hain

mod

el (w

hich

byp

asse

s th

e ph

ysic

al s

uppl

y ch

ain

and

thus

con

tribu

tes

only

ind

irect

ly t

o su

stai

nabl

e pr

oduc

tion)

has

see

n a

sign

ifica

nt c

ontra

ctio

n la

st y

ear.

RSPO

sai

d it

will

clos

ely

mon

itor t

he o

n-go

ing

shift

bet

wee

n ce

rtific

atio

n m

etho

ds, b

ecau

se th

e ‘B

ook&

Cla

im’ m

echa

nism

pla

ys a

fund

amen

tal r

ole

in li

nkin

g gr

ower

s w

ho d

o no

t ha

ve a

cces

s to

the

phys

ical

sup

ply

chai

n to

the

mar

ket f

or c

ertifi

ed p

rodu

ce. M

eanw

hile

, the

issu

e th

at to

tal

supp

lies

of c

ertifi

ed p

rodu

ce s

igni

fican

tly e

xcee

d ac

tual

sal

es p

ersi

sts:

the

late

st s

ales

sta

tistic

s su

gges

t th

at ro

ughl

y ha

lf of

the

avai

labl

e ce

rtifie

d su

pply

doe

s no

t find

a b

uyer

and

is s

old

as c

onve

ntio

nal p

alm

oil,

i.e

. with

out f

etch

ing

a pr

ice

prem

ium

.

18IN

DUST

RY S

TAN

DARD

S –

Sust

aina

ble

oil p

alm

June

Glo

bal

Cer

tifica

tion

– ch

ildre

n’s

right

s: A

rece

ntly

sig

ned

MoU

bet

wee

n RS

PO a

nd th

e U

nite

d N

atio

ns C

hild

ren’

s Fu

nd (U

NIC

EF) a

ims

at c

hang

ing

busi

ness

pra

ctic

es o

n ch

ildre

n’s

right

s an

d w

orke

rs’ w

elfa

re in

the

palm

oil

sect

or. T

he in

itiat

ive

envi

sage

s jo

int w

orkp

lace

pro

gram

mes

on

the

right

s of

chi

ldre

n an

d w

orki

ng fa

milie

s,

whi

le R

SPO

als

o co

mm

itted

to ra

isin

g aw

aren

ess

amon

gst m

embe

rs a

nd m

ains

tream

ing

child

righ

ts in

to

its s

usta

inab

ility

stan

dard

s.

19IN

DUST

RY S

TAN

DARD

S –

Sust

aina

ble

oil p

alm

June

Glo

bal

Mon

itorin

g pr

oduc

tion

prac

tices

: RS

PO p

artn

ered

with

the

Wor

ld R

esou

rces

Inst

itute

(WRI

) to

crea

te

“Geo

RSPO

”, an

inte

ract

ive

map

ping

pla

tform

feat

urin

g co

nces

sion

map

s su

bmitt

ed b

y gr

ower

mem

bers

–

over

laid

with

out

side

info

rmat

ion

on tr

ee c

over

, top

ogra

phy,

past

fire

occ

urre

nce

and

new

fire

ale

rts. T

he

syst

em is

des

crib

ed a

s a

pow

erfu

l ana

lytic

al to

ol to

mon

itor d

evel

opm

ents

on

RSPO

mem

bers

’ pal

m o

il co

nces

sion

s. (S

ee a

lso M

PPU

Jul

y’16

on

a co

mpa

rabl

e in

itiat

ive.)

20IN

DUST

RY S

TAN

DARD

S –

Sust

aina

ble

oil p

alm

June

Glo

bal

Mar

ketin

g st

rate

gies

– li

tigat

ion

case

: C

onfe

ctio

nary

gro

up F

erre

ro –

kno

wn

for i

ts h

azel

nut-c

ocoa

spr

ead

‘Nut

ella

’ tha

t use

s pa

lm o

il as

an

ingr

edie

nt –

has

won

a c

ourt

case

aga

inst

food

reta

iler D

elha

ize, w

ho

clai

med

that

its

rival

pal

m o

il-fre

e sp

read

was

hea

lthie

r and

mor

e su

stai

nabl

e th

an s

prea

ds c

onta

inin

g pa

lm

oil.

The

rulin

g is

sued

by

the

Belg

ian

Cou

rt of

App

eal s

tate

s th

at th

e re

taile

r’s c

laim

s w

ere

“unv

erifi

able

, un

subs

tant

iate

d by

fact

-bas

ed c

laim

s, a

nd th

eref

ore

not o

bjec

tive”

in re

latio

n to

bot

h en

viro

nmen

tal a

nd

heal

th a

llega

tions

mad

e ag

ains

t pal

m o

il.

21IN

DUST

RY S

TAN

DARD

S –

Sust

aina

ble

oil p

alm

July

Glo

bal

Resp

onsi

ble

lend

ing

polic

ies:

La

st y

ear,

soci

al s

ocie

ty g

roup

s ur

ged

glob

al le

ndin

g in

stitu

tions

and

in

vest

ors

to p

lay

a m

ore

prom

inen

t rol

e in

per

suad

ing

clie

nts

oper

atin

g in

the

oil p

alm

bus

ines

s to

ado

pt

sust

aina

ble

prod

uctio

n pr

actic

es (

see

MPP

U A

pr.’1

6 &

Feb.

’17)

. Su

bseq

uent

ly, i

nter

natio

nal

lend

ing

inst

itutio

n H

SBC

car

ried

out a

revi

ew o

f its

loan

pol

icie

s fo

r the

pal

m o

il sec

tor,

even

tual

ly a

dopt

ing

stric

ter

stan

dard

s to

pro

tect

prim

ary

fore

sts

and

peat

land

(see

MPP

U A

pr.’1

7). A

ccor

ding

to re

cent

med

ia re

ports

, in

Jul

y 20

17, t

he n

amed

ban

k tri

gger

ed a

pro

be in

to a

clie

nt p

alm

oil

com

pany

ove

r spe

cific

def

ores

tatio

n al

lega

tions

. RSP

O, t

he in

dust

ry st

anda

rds s

ettin

g bo

dy to

whi

ch b

oth

the

bank

and

the

conc

erne

d co

mpa

ny

are

mem

bers

, rec

ently

ope

ned

an in

vest

igat

ion

over

cla

ims

that

the

con

cern

ed c

ompa

ny w

as r

eady

to

clea

r 18

000

hec

tare

s of

prim

ary

fore

st in

Pap

ua (I

ndon

esia

) to

set

up a

new

oil

palm

pla

ntat

ion.

The

m

ove

is m

eant

to e

nsur

e th

at th

e RS

PO’s

sust

aina

bilit

y st

anda

rds

are

obse

rved

. Rep

orte

dly,

RSPO

adv

ised

th

e co

mpa

ny t

o su

spen

d al

l fur

ther

dev

elop

men

t on

the

con

cern

ed c

once

ssio

n pe

ndin

g th

e ag

ency

’s in

depe

nden

t ass

essm

ent.

Mea

nwhi

le, f

ollo

win

g H

SBC

’s ex

ampl

e, s

ever

al o

ther

ban

ks s

tarte

d m

ovin

g to

ad

opt

stric

ter

lend

ing

polic

ies

base

d on

“no

def

ores

tatio

n–no

pea

t–no

exp

loita

tion”

com

mitm

ents

, th

e m

edia

repo

rted.

Oilcrops complex: Policy changes and industry measures - Annual compendium 2017 51

No.

Dom

ain

Mon

thC

ount

ryD

escr

iptio

n *

22IN

DUST

RY S

TAN

DARD

S –

Sust

aina

ble

oil p

alm

Augu

stG

loba

lC

ertifi

catio

n in

itiat

ive:

An

inde

pend

ent c

ertifi

catio

n sc

hem

e, th

e In

tern

atio

nal P

alm

Oil

Free

Cer

tifica

tion

Accr

edita

tion

Prog

ram

me

(PO

FCAP

), ha

s be

en la

unch

ed to

allo

w in

tere

sted

food

mak

ers

to d

emon

stra

te

that

thei

r pro

duct

s w

ere

man

ufac

ture

d w

ithou

t usi

ng p

alm

oil o

r pal

m o

il der

ivat

ives

. The

new

sch

eme

was

de

velo

ped

to re

spon

d to

gro

win

g co

nsum

er d

eman

d fo

r tra

nspa

renc

y ov

er th

e us

e of

pal

m o

il in

proc

esse

d fo

ods.

Rep

orte

dly,

POFC

AP h

as b

een

appr

oved

by

regu

lato

rs in

Aus

tralia

and

the

UK,

whi

le a

pplic

atio

ns

are

still

pend

ing

in s

ever

al o

ther

cou

ntrie

s. P

OFC

AP b

ars

com

pani

es fr

om u

sing

lang

uage

impl

ying

that

PO

FCAP

reco

mm

ends

a g

iven

pro

duct

ove

r com

petin

g pr

oduc

ts.

23IN

DUST

RY S

TAN

DARD

S –

Sust

aina

ble

oil p

alm

Sept

embe

rIn

dia

Prom

otio

n of

sus

tain

able

pro

duct

ion

& ce

rtific

atio

n:

The

inte

rnat

iona

l NG

O S

olid

arid

ad N

etw

ork,

in

asso

ciat

ion

with

Indi

a’s

Solv

ent

Extra

ctor

s’ A

ssoc

iatio

n (th

e co

untry

’s na

tiona

l veg

etab

le o

il pr

oduc

tion

and

trade

ass

ocia

tion)

has

laun

ched

the

‘Indi

an P

alm

Oil

Sust

aina

bilit

y’ fr

amew

ork,

IPO

S. R

epor

tedl

y, th

e in

itiat

ive

is b

acke

d by

the

Indi

an G

over

nmen

t and

enj

oys

the

supp

ort o

f the

Indi

an In

stitu

te o

f Oil

Palm

Re

sear

ch (I

IOPR

). Th

e pr

ojec

t’s o

bjec

tive

is to

stim

ulat

e do

mes

tic p

rodu

ctio

n of

and

trad

e in

sus

tain

able

pa

lm o

il. D

evel

oped

in c

onsu

ltatio

n w

ith k

ey s

take

hold

ers

acro

ss th

e co

untry

, the

IPO

S fra

mew

ork

cons

ists

of

a s

et o

f env

ironm

enta

l and

soc

ial s

tand

ards

app

licab

le t

o In

dian

con

ditio

ns. I

POS

will

be t

aske

d to

: (i)

pro

mot

e th

e ad

optio

n of

sus

tain

able

pra

ctic

es a

cros

s th

e su

pply

cha

in;

(ii) a

ssis

t st

akeh

olde

rs i

n ac

hiev

ing

com

plia

nce

with

app

licab

le n

atio

nal/i

nter

natio

nal r

egul

atio

ns a

nd v

olun

tary

cod

es; a

nd (i

ii) fo

ster

ha

rmon

izatio

n w

ith o

ther

rela

ted

initi

ativ

es in

Asi

a. T

he p

rogr

amm

e w

ill be

gov

erne

d by

a m

ulti-

stak

ehol

der

natio

nal p

latfo

rm.

24IN

DUST

RY S

TAN

DARD

S –

Sust

aina

ble

oil p

alm

Sept

embe

rIn

dia,

glo

bal

Resp

onsi

ble

sour

cing

com

mitm

ents

: Th

e W

WF

rele

ased

a re

port

that

hig

hlig

hts

the

criti

cal r

ole

Indi

an

com

pani

es c

ould

pla

y in

pro

mot

ing

sust

aina

ble

prod

uctio

n pr

actic

es in

oil

palm

gro

win

g co

untri

es. I

ndia

is

the

wor

ld’s

larg

est

cons

umer

of

palm

oil,

with

virt

ually

all

of it

impo

rted

from

Sou

thea

st A

sia.

Whi

le

awar

enes

s le

vels

on

sust

aina

bilit

y is

sues

is r

isin

g, t

he In

dian

indu

stry

’s up

take

of

certi

fied

sust

aina

ble

palm

oil r

emai

ns lim

ited,

acc

ordi

ng to

WW

F’s

repo

rt. T

he o

rgan

izatio

n re

com

men

ds a

set

of a

ppro

ache

s to

pr

omot

e re

spon

sibl

e so

urci

ng, d

raw

ing

on c

onst

ruct

ive

indu

stry

eng

agem

ent.

Prop

osed

sol

utio

ns in

clud

e:

(i) s

yste

mat

ic s

cree

ning

of p

alm

oil

supp

liers

; (ii)

fost

erin

g in

dust

ry c

olla

bora

tion

thro

ugh

an in

dust

ry fo

rum

ac

ross

the

valu

e ch

ain;

(iii)

tariff

-bas

ed p

olic

y m

easu

res;

(iv)

pro

mot

ing

sust

aina

bilit

y fra

mew

orks

suc

h as

RS

PO; a

nd (v

) cal

ling

for d

efor

esta

tion-

free

portf

olio

s by

lend

ing

inst

itutio

ns.

25IN

DUST

RY S

TAN

DARD

S –

Sust

aina

ble

oil p

alm

Sept

embe

rIn

done

sia

Resp

onsi

ble

prod

uctio

n pl

edge

: Ac

cord

ing

to m

edia

rep

orts

, a la

rge

oil p

alm

com

pany

sta

ted

that

it

wou

ld e

ndea

vor t

o re

habi

litat

e pe

atla

nd it

rece

ntly

dev

elop

ed in

Indo

nesi

a to

pla

nt o

il pa

lm. T

he e

xten

t of

the

area

con

cern

ed w

as n

ot d

iscl

osed

. So

far,

the

firm

per

man

ently

dis

cont

inue

d la

nd d

evel

opm

ent w

ork

in t

he c

once

rned

con

cess

ions

and

am

ende

d its

cor

pora

te s

usta

inab

ility

polic

y by

ban

ning

all

peat

land

de

velo

pmen

t irre

spec

tive

of w

hen

the

land

s w

ere

acqu

ired.

Soc

ial s

ocie

ty g

roup

s w

elco

med

the

initi

ativ

e an

d en

cour

aged

the

com

pany

to

draw

up

and

impl

emen

t a

time-

boun

d ac

tion

plan

to

deliv

er o

n its

co

mm

itmen

t. (S

ee a

lso M

PPU

Feb

.’16

on p

ublic

pea

tland

rest

orat

ion

effor

ts in

Indo

nesia

.)

52 Oilcrops complex: Policy changes and industry measures - Annual compendium 2017

No.

Dom

ain

Mon

thC

ount

ryD

escr

iptio

n *

26IN

DUST

RY S

TAN

DARD

S –

Sust

aina

ble

oil p

alm

Sept

embe

rM

alay

sia,

Si

ngap

ore,

glo

bal

Mon

itorin

g re

spon

sibl

e so

urci

ng c

omm

itmen

ts: W

hile

man

y pal

m o

il buy

ers a

re a

war

e of

the

impo

rtanc

e of

us

ing

sust

aina

bly

prod

uced

pal

m o

il, o

nly

a fe

w b

usin

esse

s ar

e en

gage

d in

hel

ping

to re

duce

def

ores

tatio

n an

d ot

her

adve

rse

prac

tices

foun

d in

oil

palm

, cla

imed

the

Wor

ld W

ildlif

e Fu

nd (W

WF)

. Acc

ordi

ng t

o a

surv

ey o

f pal

m o

il-bu

ying

food

and

rest

aura

nt c

hain

s co

nduc

ted

by W

WF

in M

alay

sia

and

Sing

apor

e, th

e m

ajor

ity o

f sur

veye

d co

mpa

nies

wer

e no

t tra

nspa

rent

abo

ut th

eir p

alm

oil u

se, a

nd s

ever

al b

usin

esse

s ha

d ta

ken

no a

ctio

n to

sup

port

the

use

of s

usta

inab

le p

alm

oil –

suc

h as

buy

ing

prod

uce

certi

fied

by R

SPO

(the

Ro

undt

able

on

Sust

aina

ble

Palm

Oil).

At t

he s

ame

time,

a n

umbe

r of c

ompa

nies

wen

t bey

ond

the

RSPO

cr

iteria

, com

mitt

ing

to e

limin

ate

the

dest

ruct

ion

of a

ny k

ind

of fo

rest

from

thei

r sup

ply

chai

ns. R

epor

tedl

y, co

mpa

nies

cite

d th

e co

st o

f so

urci

ng c

ertifi

ed p

alm

oil

as w

ell a

s a

lack

of

cons

umer

aw

aren

ess

and

dem

and

for c

ertifi

ed p

rodu

ce a

s re

ason

s fo

r not

buy

ing

certi

fied

palm

oil.

WW

F al

so re

porte

d th

at n

on-

disc

losu

re a

nd la

ck o

f act

ion

seem

s to

be

high

er a

t the

regi

onal

leve

l tha

n am

ong

glob

al b

rand

s. W

WF

is

cond

uctin

g bu

yers

’ sur

veys

sin

ce 2

009,

with

the

obje

ctiv

e of

enc

oura

ging

com

pani

es to

mov

e gr

adua

lly

tow

ards

mor

e re

spon

sibl

e so

urci

ng p

ract

ices

(see

MPP

U D

ec.’0

9).

27IN

DUST

RY S

TAN

DARD

S –

Sust

aina

ble

oil p

alm

Sept

embe

rG

loba

lRe

spon

sibl

e so

urci

ng c

omm

itmen

ts:

Acco

rdin

g to

the

late

st s

usta

inab

ility

repo

rt pu

blis

hed

by fo

od a

nd

drin

ks c

ompa

ny P

epsiC

o, th

e gl

obal

bus

ines

s fir

m d

oubl

ed th

e vo

lum

e of

its

palm

oil

that

is s

usta

inab

ly

sour

ced,

from

8 p

erce

nt in

201

5 to

16

perc

ent l

ast y

ear –

whi

ch, h

owev

er, c

ompa

res

to a

targ

et o

f del

iver

ing

100

perc

ent s

usta

inab

ly s

ourc

ed p

alm

oil b

y 20

20. T

he c

ompa

ny a

lso

conc

eded

that

non

e of

its

resp

onsi

bly

sour

ced

raw

mat

eria

ls h

ave

been

ver

ified

as

sust

aina

ble

by a

third

par

ty –

des

pite

the

com

pany

’s ta

rget

of

secu

ring

100

per c

ent t

hird

-par

ty v

erifi

catio

n by

202

0.

28IN

DUST

RY S

TAN

DARD

S –

Sust

aina

ble

oil p

alm

Nov

embe

rG

loba

lC

ompa

ring

certi

ficat

ion

sche

mes

: C

ivil

soci

ety

grou

p Fo

rest

Peo

ples

Pro

gram

me

publ

ishe

d a

stud

y co

mpa

ring

the

wor

ld’s

prin

cipa

l pal

m o

il su

stai

nabi

lity

stan

dard

s ba

sed

on a

det

aile

d as

sess

men

t of t

heir

envi

ronm

enta

l and

soc

ial r

equi

rem

ents

. In

addi

tion

to h

ighl

ight

ing

area

s of

com

mon

ality

and

diff

eren

ce, t

he

repo

rt dr

aws

atte

ntio

n to

alle

ged

gaps

in e

ach

stan

dard

.

29IN

DUST

RY S

TAN

DARD

S –

Sust

aina

ble

oil p

alm

Nov

embe

rG

loba

lRe

spon

sibl

e so

urci

ng c

omm

itmen

ts:

Fur

ther

to

its c

omm

itmen

t to

exc

lusi

vely

pur

chas

e pa

lm a

nd

palm

kern

el o

il cer

tified

by

the

Roun

dtab

le o

n Su

stai

nabl

e Pa

lm O

il (RS

PO),

Ger

man

ole

oche

mic

al c

ompa

ny

BASF

rece

ntly

join

ed th

e Fo

rum

for

Sust

aina

ble

Palm

Oil

(FO

NAP

), w

hose

prin

cipa

l goa

l is

to r

aise

the

prop

ortio

n of

cer

tified

pro

duct

s in

the

Ger

man

, Aus

trian

and

Sw

iss

mar

ket.

30IN

DUST

RY S

TAN

DARD

S –

Sust

aina

ble

oil p

alm

Nov

embe

rG

loba

lC

ertifi

catio

n as

sist

ance

: In

add

ition

to it

s pl

edge

to b

uy o

nly

certi

fied

palm

and

pal

mke

rnel

oil,

Ger

man

ch

emic

al a

nd c

onsu

mer

goo

ds c

ompa

ny H

enke

l par

tner

ed w

ith in

tern

atio

nal N

GO

Sol

idar

idad

to p

rom

ote

sust

aina

ble

palm

oil

prod

uctio

n am

ong

smal

lhol

der f

arm

ers

in C

olom

bia.

Und

er th

e jo

int i

nitia

tive,

sm

all

prod

ucer

s re

ceiv

e tra

inin

g on

met

hods

to im

prov

e pr

oduc

tivity

, red

uce

envi

ronm

enta

l im

pact

and

mov

e to

war

ds c

ertifi

catio

n.

31IN

DUST

RY S

TAN

DARD

S –

Sust

aina

ble

oil p

alm

Dece

mbe

rN

orth

Am

eric

aRe

spon

sibl

e so

urci

ng in

itiat

ive:

The

Rou

ndta

ble

on S

usta

inab

le P

alm

Oil (

RSPO

) ann

ounc

ed th

e fo

rmat

ion

of th

e N

orth

Am

eric

an P

alm

Oil N

etw

ork (

NAS

PON

). Re

porte

dly,

in a

n eff

ort t

o ac

cele

rate

col

labo

ratio

n w

ithin

th

e m

arke

t, N

ASPO

N’s

mis

sion

will

be to

edu

cate

and

ass

ist N

orth

Am

eric

an c

ompa

nies

in m

akin

g an

d de

liver

ing

on c

omm

itmen

ts to

sou

rce

sust

aina

bly

prod

uced

pal

m o

il. T

he n

ewly

form

ed c

oalit

ion

com

pris

es

indu

stry

ass

ocia

tions

, civ

il soc

iety

gro

ups,

con

sum

er g

oods

man

ufac

ture

rs, f

ood-

serv

ice

reta

ilers

and

pal

m

oil t

rade

rs.

Oilcrops complex: Policy changes and industry measures - Annual compendium 2017 53

No.

Dom

ain

Mon

thC

ount

ryD

escr

iptio

n *

32IN

DUST

RY S

TAN

DARD

S –

Sust

aina

ble

oil p

alm

Dece

mbe

rG

loba

lC

ertifi

catio

n –

impa

ct o

n pr

oduc

tion

prac

tices

: A

gro

up o

f U

.S.

rese

arch

ers

repo

rted

on e

fforts

to

mea

sure

the

actu

al e

ffect

of s

usta

inab

ility

certi

ficat

ion

on d

efor

esta

tion

and

fire

with

in o

il pa

lm p

lant

atio

ns

in In

done

sia.

The

ana

lysi

s of

dat

a of

RSP

O-c

ertifi

ed a

nd n

on-c

ertifi

ed o

il pa

lm p

lant

atio

ns fo

r the

200

1–20

15 p

erio

d su

gges

ts th

at c

ertifi

catio

n si

gnifi

cant

ly re

duce

d de

fore

stat

ion

amon

g pa

rtici

patin

g pl

anta

tions

, bu

t not

fire

occ

urre

nce

or c

lear

ance

of c

arbo

n-ric

h pe

atla

nd. M

oreo

ver,

it em

erge

d th

at c

ertifi

catio

n w

as

mos

tly a

dopt

ed in

old

er p

lant

atio

ns th

at c

ompr

ised

little

rem

aini

ng fo

rest

and

, con

sequ

ently

, the

act

ual a

rea

cons

erve

d ap

pear

s to

be

rath

er s

mal

l. Th

e st

udy

conc

lude

s th

at c

ertifi

catio

n sc

hem

es h

ave

the

pote

ntia

l to

cont

ribut

e to

the

prot

ectio

n of

end

ange

red

tropi

cal f

ores

ts. H

owev

er, b

road

er a

dopt

ion

of c

ertifi

catio

n by

oil

palm

gro

wer

s –

targ

etin

g es

peci

ally

oil

palm

com

pani

es th

at d

evel

op fo

rest

fron

tiers

as

oppo

sed

to th

ose

wor

king

with

wel

l-est

ablis

hed

plan

tatio

ns –

is li

kely

nee

ded

for p

alm

oil

certi

ficat

ion

to re

sult

in m

eani

ngfu

l pr

otec

tion

of to

tal f

ores

t are

a, th

e st

udy

says

.

33IN

DUST

RY S

TAN

DARD

S –

Sust

aina

ble

soy

Janu

ary

Braz

il, E

urop

ean

Uni

on

Resp

onsi

ble

supp

ly c

hain

: Ba

cked

by

a ci

vil s

ocie

ty g

roup

that

pro

mot

es s

usta

inab

le tr

ade

initi

ativ

es,

four

ass

ocia

tions

rep

rese

ntin

g Br

azilia

n so

ybea

n pr

oduc

ers

and

Euro

pean

soy

buy

ers

have

sig

ned

a m

emor

andu

m o

f und

erst

andi

ng in

supp

ort o

f res

pons

ible

soy p

rodu

ctio

n in

Bra

zil a

nd it

s mar

ket a

ccep

tanc

e in

Eur

ope.

Rep

orte

dly,

the

initi

ativ

e w

ill su

ppor

t the

Bra

zilia

n Fo

rest

Cod

e’s

obje

ctiv

e of

pre

serv

ing

natu

ral

habi

tats

by

prom

otin

g su

stai

nabl

e pr

oduc

tion

prac

tices

on

soy

farm

s w

hils

t saf

egua

rdin

g co

mm

unity

righ

ts

in ru

ral a

reas

. All fi

ve p

artie

s ex

plic

itly

reco

gnize

d th

e co

mpl

emen

tarit

y of

exi

stin

g re

spon

sibl

e so

y in

itiat

ives

in

Eur

ope

and

Braz

il.

34IN

DUST

RY S

TAN

DARD

S –

Sust

aina

ble

soy

May

Braz

ilSo

ybea

n m

orat

oriu

m: A

ccor

ding

to a

stud

y joi

ntly

con

duct

ed b

y res

earc

hers

in B

razil

and

the

Uni

ted

Stat

es,

Braz

il’s v

olun

tary

mor

ator

ium

– w

hich

ban

ned

the

purc

hasi

ng a

nd fi

nanc

ing

of s

oybe

ans

prod

uced

on

illega

lly c

lear

ed la

nd in

the

Amaz

on b

iom

e – h

as b

een

mor

e eff

ectiv

e th

an p

revi

ousl

y con

side

red.

Rep

orte

dly,

fore

st c

over

loss

dec

lined

sha

rply

afte

r the

mea

sure

’s in

trodu

ctio

n in

200

6. R

epor

tedl

y, de

fore

stat

ion

is s

till

ongo

ing,

but

it h

as s

low

ed d

own

cons

ider

ably,

and

less

of t

he d

efor

este

d la

nd is

bei

ng u

sed

for s

oybe

an

prod

uctio

n. E

xten

ded

regu

larly

sin

ce it

s in

trodu

ctio

n, th

e m

orat

oriu

m w

as re

new

ed in

defin

itely

in M

ay 2

016

(see

MPP

U J

une’

16).T

he in

itiat

ive

is s

uppo

rted

by a

mul

ti-st

akeh

olde

r coa

litio

n th

at b

rings

toge

ther

the

priv

ate

sect

or, e

nviro

nmen

tal N

GO

s gr

oups

and

the

Braz

ilian

gove

rnm

ent.

35IN

DUST

RY S

TAN

DARD

S –

Sust

aina

ble

soy

May

Braz

il, E

urop

ean

Uni

onRe

spon

sibl

e su

pply

cha

in:

A gr

oup

of B

razil

ian

and

EU in

dust

ry a

ssoc

iatio

ns jo

ined

forc

es to

sup

port

the

prod

uctio

n (in

Bra

zil) a

nd m

arke

t acc

epta

nce

(in th

e EU

) of “

resp

onsi

ble

soy”

, i.e

. soy

bean

pro

duce

d in

ac

cord

ance

with

spe

cific

env

ironm

enta

l, so

cial

and

fina

ncia

l prin

cipl

es a

nd c

riter

ia. T

he g

roup

’s ob

ject

ives

in

clud

e in

volv

ing

Euro

pean

soy

use

rs i

n th

e de

velo

pmen

t of

too

ls t

hat

allo

w c

ompe

nsat

ing

Braz

ilian

prod

ucer

s fo

r the

ir en

viro

nmen

tal s

ervi

ces.

36IN

DUST

RY S

TAN

DARD

S –

Sust

aina

ble

soy

Dece

mbe

rBr

azil

Resp

onsi

ble

prod

uctio

n pr

actic

es:

Acc

ordi

ng t

o th

e Br

azilia

n oi

lsee

d in

dust

ry a

ssoc

iatio

n, A

BIO

VE,

grow

ing

soyb

ean

culti

vatio

n ha

s no

t bee

n a

sign

ifica

nt d

river

beh

ind

defo

rest

atio

n in

the

Amaz

on b

asin

. Th

e fin

ding

is b

ased

on

rece

ntly

rel

ease

d G

over

nmen

t m

ater

ial p

rovi

ding

sat

ellit

e im

ager

y of

soy

bean

pr

oduc

tion

in th

e Am

azon

bio

me.

Alle

gedl

y, du

ring

the

last

dec

ade,

soy

bean

farm

ing

only

acc

ount

ed fo

r 1.

2 pe

rcen

t of t

otal

def

ores

tatio

n in

the

area

– a

circ

umst

ance

that

is li

nked

to th

e la

unch

of t

he B

razil

ian

Soy

Mor

ator

ium

in 2

006

and

to im

prov

emen

ts in

pub

lic e

nviro

nmen

tal g

over

nanc

e. R

epor

tedl

y, al

thou

gh

the

area

pla

nted

with

soy

con

tinue

d to

rise

stro

ngly,

the

expa

nsio

n oc

curre

d pr

imar

ily o

n fo

rmer

pas

ture

land

an

d ar

eas

clea

red

prio

r to

the

intro

duct

ion

of s

trict

def

ores

tatio

n lim

its. T

he B

razil

ian

Soy

Mor

ator

ium

ban

s th

e tra

ding

and

fina

ncin

g of

soy

bean

s gr

own

on la

nd il

lega

lly c

lear

ed in

the

Amaz

on re

gion

. The

vol

unta

ry

initi

ativ

e is

sup

porte

d by

a m

ulti-

stak

ehol

der c

oalit

ion

brin

ging

toge

ther

the

priv

ate

sect

or, N

GO

s an

d th

e go

vern

men

t.

54 Oilcrops complex: Policy changes and industry measures - Annual compendium 2017

No.

Dom

ain

Mon

thC

ount

ryD

escr

iptio

n *

37IN

DUST

RY S

TAN

DARD

S –

Sust

aina

ble

coco

nut

July

Philip

pine

s,

Indo

nesi

aC

ertifi

ed s

usta

inab

le c

ocon

ut:

Bac

ked

by t

he G

over

nmen

t of

Ger

man

y, th

e G

erm

an A

genc

y fo

r In

tern

atio

nal C

oope

ratio

n (G

IZ) j

oine

d fo

rces

with

priv

ate

cons

umer

goo

d fir

m P

&G, c

hem

ical

com

pany

BA

SF a

nd a

gri-t

rade

firm

Car

gill t

o en

hanc

e th

e pr

oduc

tion

of c

ocon

ut o

il in

the

Philip

pine

s an

d In

done

sia.

Th

e in

itiat

ive

is a

imed

at e

stab

lishi

ng c

ertifi

ed s

usta

inab

le c

ocon

ut s

uppl

y ch

ains

in th

e re

gion

s of

Sou

ther

n M

inda

nao

and

Sout

hern

Ley

te (P

hilip

pine

s), a

nd A

mur

ang

and

Nor

th S

ulaw

esi (

Indo

nesi

a). W

orki

ng w

ith

smal

lhol

der

farm

ers,

the

proj

ect w

ill fo

cus

on g

ood

agric

ultu

ral p

ract

ices

, int

ercr

oppi

ng, e

nhan

ced

farm

m

anag

emen

t sk

ills, a

nd t

he c

reat

ion

of c

oope

rativ

es. S

elec

ted

farm

ers

will

also

rec

eive

tra

inin

g on

the

Su

stai

nabl

e Ag

ricul

tura

l Net

wor

k (S

AN) s

tand

ards

, with

a vi

ew to

faci

litat

e ap

plic

atio

n fo

r Rai

nfor

est A

llianc

e ce

rtific

atio

n. W

hile

GIZ

wou

ld fo

cus

on th

e pr

ovis

ion

of te

chni

cal a

ssis

tanc

e, C

argi

ll w

ill be

in c

harg

e of

pr

oduc

tion,

whi

le P

&G a

nd B

ASF

wou

ld s

ecur

e ac

cess

to th

e pe

rson

al c

are,

nut

ritio

n an

d he

alth

pro

duct

s m

arke

t.38

INDU

STRY

STA

NDA

RDS

– Su

stai

nabl

e fis

hoil/

mea

lJa

nuar

yG

loba

lFi

shoi

l/mea

l – in

tern

atio

nal p

rodu

ctio

n st

anda

rds:

IFF

O,th

e or

gani

zatio

n th

at re

pres

ents

and

pro

mot

es

the

fishm

eal,

fisho

il an

d w

ider

mar

ine

ingr

edie

nts

indu

stry

wor

ldw

ide,

has

laun

ched

a tw

o-m

onth

pub

lic

cons

ulta

tion

on it

s re

vise

d Re

spon

sibl

e Su

pply

sta

ndar

d fo

r fish

ery

and

fact

ory

asse

ssm

ents

. The

pur

pose

of

the

revi

sion

is to

pro

mot

e m

ore

resp

onsi

ble

fishe

ry m

anag

emen

t and

furth

er re

duce

the

envi

ronm

enta

l an

d so

cial

impa

ct o

f the

fish

mea

l and

fish

oil m

anuf

actu

ring

proc

ess.

39IN

DUST

RY S

TAN

DARD

S –

Sust

aina

ble

fisho

il/m

eal

July

Glo

bal

Cer

tified

res

pons

ible

fish

oil/m

eal:

The

Mar

ine

Ingr

edie

nts

Org

anis

atio

n (IF

FO),

whi

ch r

epre

sent

s th

e gl

obal

fish

mea

l, fis

h oi

l and

mar

ine

ingr

edie

nts

indu

stry

, rev

ised

its

glob

al s

tand

ard

for r

espo

nsib

le s

uppl

y of

mar

ine

raw

mat

eria

ls to

mai

ntai

n its

rele

vanc

e, c

redi

bilit

y an

d ac

cess

ibilit

y to

all c

urre

nt a

nd p

rosp

ectiv

e pr

oduc

ers.

Lau

nche

d in

200

9, th

e sta

ndar

d is

impl

emen

ted

via a

volu

ntar

y bus

ines

s-to

-bus

ines

s cer

tifica

tion

prog

ram

me

aim

ed a

t gua

rant

eein

g th

at m

arin

e ra

w m

ater

ials

use

d fo

r fee

d, fo

od a

nd n

utra

ceut

ical

pur

pose

s ar

e re

spon

sibl

y so

urce

d an

d m

anuf

actu

red.

40IN

DUST

RY S

TAN

DARD

S –

Food

pro

duct

sM

ayC

hina

Gro

undn

ut o

il au

then

ticat

ion:

Chi

nese

rese

arch

ers

pres

ente

d a

new

ana

lytic

al m

etho

d fo

r det

ectin

g fra

ud

in g

roun

dnut

oil.

Bas

ed o

n lo

w-fi

eld

nucl

ear m

agne

tic re

sona

nce

and

chem

omet

rics,

the

new

tech

niqu

e is

sai

d to

elim

inat

e th

e sa

mpl

e pr

e-tre

atm

ent s

tep,

thus

allo

win

g to

det

ect a

dulte

ratio

n of

gro

undn

ut o

il w

ith o

ther

veg

etab

le o

ils in

a s

ingl

e 5-

min

ute

anal

ysis

. Gro

undn

ut o

il is

a m

ajor

edi

ble

oil i

n C

hina

, alo

ng

with

soy

bean

and

rape

seed

oil.

Bei

ng m

ore

expe

nsiv

e th

an th

e ot

her t

wo

oils

, it i

s pr

one

to a

dulte

ratio

n by

un

scru

pulo

us d

eale

rs.

41IN

DUST

RY S

TAN

DARD

S –

Food

pro

duct

sM

ayVa

nuat

u, N

ew

Zeal

and

Cer

tified

org

anic

coc

onut

oil:

A

coco

nut

oil p

rodu

cer

and

expo

rter

of V

anua

tu h

as a

chie

ved

certi

fied

orga

nic

stat

us w

ith c

ertif

ying

com

pany

Bio

Gro

in N

ew Z

eala

nd. R

epor

tedl

y, th

e Bi

oGro

cer

tifica

tion

labe

l is

wid

ely

reco

gnize

d in

New

Zea

land

– V

anua

tu’s

top

expo

rt m

arke

t – a

s w

ell a

s el

sew

here

in th

e re

gion

.42

INDU

STRY

STA

NDA

RDS

– Fo

od p

rodu

cts

June

Tuni

sia,

Jap

anO

live

oil –

pro

vena

nce

bran

ding

: Ac

cord

ing

to a

team

of J

apan

ese

and

Tuni

sian

rese

arch

ers

(sup

porte

d by

Jap

an’s

Scie

nce

and

Tech

nolo

gy R

esea

rch

Partn

ersh

ip fo

r Sus

tain

able

Dev

elop

men

t, SA

TREP

S), o

ils

prod

uced

from

Tun

isia

n ol

ive

varie

ties

are

exce

ptio

nally

ric

h in

nat

ural

ant

i-oxi

dant

s an

d an

ti-al

lerg

ens,

po

tent

ially

impl

ying

a s

uper

ior

heal

th p

rofil

e. R

epor

tedl

y, th

e Ja

pan

Inte

rnat

iona

l Coo

pera

tion

Agen

cy

(JIC

A) c

urre

ntly

end

eavo

urs

to p

rovi

de th

e ne

cess

ary

cond

ition

s to

laun

ch a

Tuni

sian

oliv

e oi

l labe

l in J

apan

.43

INDU

STRY

STA

NDA

RDS

– Fo

od p

rodu

cts

Augu

stEu

rope

an U

nion

O

live

oil a

uthe

ntic

atio

n:

‘Ole

um’,

a fo

ur-y

ear p

roje

ct s

uppo

rted

by th

e Eu

rope

an U

nion

’s H

orizo

n 20

20

Rese

arch

and

Inno

vatio

n Pr

ogra

mm

e, e

nter

ed it

s se

cond

yea

r of i

mpl

emen

tatio

n. T

he in

itiat

ive

is a

imed

at

bette

r gua

rant

eein

g ol

ive

oil q

ualit

y an

d au

then

ticity

by

empo

wer

ing

dete

ctio

n an

d fo

ster

ing

prev

entio

n of

ol

ive

oil f

raud

. Rep

orte

dly,

the

cons

ortiu

m o

f 20

inte

rnat

iona

l par

tner

s ha

s id

entifi

ed k

now

ledg

e ga

ps in

four

ar

eas

that

the

proj

ect w

ill ad

dres

s: le

gisl

atio

n an

d re

gula

tion;

ana

lysi

s; h

arm

oniza

tion

and

coor

dina

tion;

and

co

nsum

er a

nd m

arke

t con

fiden

ce.

Oilcrops complex: Policy changes and industry measures - Annual compendium 2017 55

No.

Dom

ain

Mon

thC

ount

ryD

escr

iptio

n *

44IN

DUST

RY S

TAN

DARD

S –

Food

pro

duct

sSe

ptem

ber

Aust

ralia

Oliv

e oi

l – p

rove

nanc

e br

andi

ng:

Aust

ralia

’s ol

ive

oil in

dust

ry is

exp

lorin

g a

prov

enan

ce-b

rand

ing

initi

ativ

e to

bet

ter

mar

ket

the

coun

try’s

dive

rse

extra

virg

in o

live

oils

. C

urre

ntly,

Aus

tralia

’s ol

ive

oil

mar

ket

is

dom

inat

ed b

y hi

gh-v

olum

e bl

ende

d oi

ls im

porte

d fro

m E

urop

e. R

epor

tedl

y, 85

per

cent

of A

ustra

lia’s

extra

vi

rgin

oil

oliv

e pr

oduc

tion

com

e fro

m o

lives

gro

wn

in s

ingl

e gr

oves

. Con

side

ring

that

loca

tion

can

impa

ct

an o

il’s fl

avou

r and

che

mic

al p

rofil

e, th

e ne

w in

itiat

ive

is a

imed

at s

ettin

g up

an

appe

llatio

n sy

stem

, whi

ch

wou

ld (i

) ena

ble

cons

umer

s to

ass

ocia

te a

n oi

l with

a s

peci

fic re

gion

and

gro

wer

, and

(ii)

allo

w p

rodu

cers

to

ach

ieve

bet

ter p

rices

.45

INDU

STRY

STA

NDA

RDS

– Fo

od p

rodu

cts

Dece

mbe

rSp

ain

Palm

oil

– or

igin

iden

tifica

tion:

In

Spa

in, a

gro

up o

f sci

entis

ts c

laim

s to

hav

e de

velo

ped

a qu

ick

and

accu

rate

met

hod

to id

entif

y th

e ge

ogra

phic

al o

rigin

of p

alm

oil –

whi

ch, a

ccor

ding

to th

e gr

oup,

cou

ld h

elp

gove

rnm

ents

and

indu

stry

to

dete

ct o

ils f

raud

ulen

tly la

belle

d as

‘cer

tified

sus

tain

able

’. Re

porte

dly,

the

new

ly d

evel

oped

met

hod

com

bine

s liq

uid

chro

mat

ogra

phy

with

che

mom

etric

and

dat

a-fu

sion

stra

tegi

es.

46G

MO

ISSU

ESM

ayAu

stra

lia, C

hina

GM

cot

tons

eed

– re

gula

tory

app

rova

l: A

ccor

ding

to in

dust

ry c

ircle

s, th

e ab

senc

e of

regu

lato

ry a

ppro

val

for

GM

cot

tons

eed

varie

ty ‘

Bollg

ard3

’ in

Chi

na is

thr

eate

ning

Aus

tralia

’s co

ttons

eed

expo

rting

sec

tor.

Repo

rtedl

y, w

hen

the

new

var

iety

was

laun

ched

in A

ustra

lia la

st y

ear,

the

pate

nt o

wne

r mis

appr

ehen

ded

the

regu

lato

ry s

ituat

ion

in C

hina

.

47G

MO

ISSU

ESM

ayBr

azil

Non

-GM

soy

: In

crea

sed

prod

uctio

n of

con

vent

iona

l soy

bean

has

bee

n re

porte

d fro

m th

e st

ate

of M

ato

Gro

sso

in B

razil

. Whi

le, i

n th

e co

untry

as

who

le, G

M v

arie

ties

acco

unt f

or a

ppro

xim

atel

y 96

per

cent

of

outp

ut,

a ni

che

mar

ket

has

emer

ged

for

non-

GM

soy

in

Braz

il’s l

eadi

ng s

oybe

an-p

rodu

cing

sta

te.

Repo

rtedl

y, th

e ne

w t

rend

is d

riven

by

prem

ia p

aid

for

conv

entio

nal v

arie

ties,

as

dem

and

for

GM

-free

pr

oduc

t is

on th

e ris

e (a

nd c

anno

t be

satis

fied

fully

) in

Euro

pe a

nd A

sia.

At p

rese

nt, t

he p

rem

ium

– w

hich

is

nee

ded

to c

ompe

nsat

e fa

rmer

s an

d tra

ders

for

addi

tiona

l cos

ts b

orne

to

prev

ent

non-

GM

soy

bean

s fro

m b

eing

con

tam

inat

ed w

ith G

M m

ater

ial –

is s

aid

to ra

nge

arou

nd B

RL 1

2 pe

r 60

kilo

gram

s sa

ck (o

r U

SD 6

1 pe

r to

nne)

. Enc

oura

ged

by s

uch

prem

ium

, far

mer

s co

uld

plan

t m

ore

non-

GM

soy

in 2

017/

18,

prov

ided

they

man

age

to s

ourc

e su

ffici

ent q

uant

ities

of s

eed.

Cur

rent

ly, c

onve

ntio

nal s

oybe

ans

acco

unt f

or

roug

hly

14 p

erce

nt o

f Mat

o G

ross

o’s

tota

l soy

out

put.

Repo

rtedl

y, th

e re

ason

for n

on-G

M p

rodu

ctio

n be

ing

conc

entra

ted

in M

ato

Gro

sso

is th

at th

e st

ate

enjo

ys a

cces

s to

rece

ntly

ope

ned

ports

on

the

Amaz

on R

iver

th

at a

re s

peci

fical

ly e

quip

ped

to h

andl

e G

M a

nd n

on-G

M m

ater

ial s

epar

atel

y.

48G

MO

ISSU

ESJu

lyEu

rope

an U

nion

Non

-GM

soy

: G

loba

l ag

ri-tra

de c

ompa

ny A

DM e

xpan

ded

its c

apac

ity t

o cr

ush

non-

GM

soy

bean

s in

Ger

man

y. Re

porte

dly,

the

mov

e is

mea

nt to

hel

p th

e co

mpa

ny m

eet r

isin

g cu

stom

er d

eman

d as

the

Euro

pean

non

-GM

soy

bean

mar

ket c

ontin

ues

to e

xpan

d an

d re

flect

s AD

M’s

stra

tegy

to s

uppo

rt fa

rmer

s in

th

eir e

fforts

to ra

ise

loca

l soy

bean

pro

duct

ion

(see

also

rela

ted

item

und

er ‘S

ecto

r dev

elop

men

t mea

sure

s’

abov

e).

49G

MO

ISSU

ESAu

gust

Braz

ilN

on-G

M s

oy:

An a

llianc

e fo

r the

pro

mot

ion

of c

onve

ntio

nal,

non-

GM

soy

bean

s –

nam

ed S

oybe

an-F

ree

Inst

itute

– h

as b

een

laun

ched

in t

he s

tate

of

Mat

o G

ross

o, w

here

mos

t of

the

cou

ntry

’s no

n-G

M s

oy

prod

uctio

n fo

r ni

che

mar

kets

in E

urop

e an

d As

ia is

loca

ted

(see

also

MPP

U J

une’

17).

Mem

bers

of t

he

new

ly c

reat

ed in

stitu

te in

clud

e gr

ower

s, s

eed

prod

ucer

s, s

uppl

iers

of c

hem

ical

inpu

ts, f

ood

man

ufac

ture

rs,

trade

rs a

nd c

ivil

soci

ety

grou

ps.

56 Oilcrops complex: Policy changes and industry measures - Annual compendium 2017

No.

Dom

ain

Mon

thC

ount

ryD

escr

iptio

n *

50G

MO

ISSU

ESSe

ptem

ber

Uni

ted

Stat

esG

MO

labe

lling

: Th

e U

.S. G

roce

ry M

anuf

actu

rers

Ass

ocia

tion

(GM

A) re

spon

ded

to U

SDA’

s ca

ll fo

r pub

lic

com

men

ts o

n th

e G

MO

labe

lling

legi

slat

ion

that

was

sig

ned

into

law

last

yea

r (se

e M

PPU

Aug

.’16)

. The

as

soci

atio

n re

com

men

ded

that

the

new

law

be

also

app

lied

to h

ighl

y re

fined

oils

and

sw

eete

ners

der

ived

fro

m G

M-c

rops

– e

ven

if G

M m

ater

ial i

s no

t al

way

s de

tect

able

via

ana

lytic

al t

ests

in r

efine

d pr

oduc

ts.

Acco

rdin

g to

GM

A, g

iven

that

the

bulk

of U

S m

aize

, soy

and

sug

arbe

et c

rops

are

gen

etic

ally

mod

ified

, th

e na

med

ingr

edie

nts

shou

ld b

e ro

utin

ely

labe

lled.

Ass

ertin

g th

at th

e ne

w la

bellin

g re

quire

men

ts s

houl

d be

con

side

red

as a

mar

ketin

g st

anda

rd r

athe

r th

an a

foo

d sa

fety

sta

ndar

d, G

MA

expl

aine

d th

at i

ts

reco

mm

enda

tion

stem

med

fro

m t

he in

dust

ry’s

com

mitm

ent

to t

rans

pare

ncy.

Furth

erm

ore,

GM

A in

vite

d U

SDA

to a

pply

the

pres

umpt

ion

that

any

food

der

ived

from

cro

ps th

at a

re o

verw

helm

ingl

y bi

oeng

inee

red

in th

e co

untry

whe

re th

ey a

re g

row

n is

a G

M fo

od –

unl

ess

a m

anuf

actu

rer

can

prov

e ot

herw

ise.

Suc

h m

easu

res

wou

ld g

reat

ly s

impl

ify c

ompl

ianc

e w

ith th

e ne

w s

tand

ard,

the

asso

ciat

ion

said

.

51G

MO

ISSU

ESN

ovem

ber

Uni

ted

Stat

esG

M s

oy –

regu

lato

ry is

sues

: Se

ed c

ompa

ny D

ow A

groS

cien

ces

anno

unce

d th

e co

mm

erci

al la

unch

, in

the

Uni

ted

Stat

es, o

f new

GM

soy

bean

var

iety

‘Enl

ist E

3’. T

he v

arie

ty h

as y

et to

be

appr

oved

in m

ajor

im

porti

ng c

ount

ries,

not

ably

the

EU a

nd C

hina

. Rep

orte

dly,

prod

uctio

n an

d m

arke

ting

of th

e ne

w v

arie

ty w

ill be

sub

ject

to s

trict

con

trols

to a

void

that

see

ds a

ccid

enta

lly e

nter

the

expo

rt pi

pelin

e. F

arm

ers

plan

ting

the

new

var

iety

will

be re

quire

d to

agr

ee to

del

iver

thei

r cro

p to

spe

cific

faci

litie

s at

set

tim

es.

52

BIO

FUEL

/BIO

ENER

GY

Mar

chBr

azil

Biod

iese

l fee

dsto

ck –

used

oils

/fats

: ABI

OVE

, the

ass

ocia

tion

of B

razil

ian

vege

tabl

e oi

l indu

strie

s, re

porte

d th

at it

s m

embe

rs a

re m

anag

ing

near

ly 1

300

col

lect

ion

poin

ts fo

r us

ed c

ooki

ng o

ils a

cros

s th

e st

ate

of

São

Paol

o. L

aunc

hed

by A

BIO

VE in

Dec

embe

r 201

5, th

e pr

ogra

mm

e is

impl

emen

ted

in c

olla

bora

tion

with

a

num

ber o

f sta

te a

genc

ies.

Und

er th

e sc

hem

e, u

sed

edib

le o

ils a

re c

olle

cted

and

sub

sequ

ently

cha

nnel

ed

for r

ecyc

ling

to th

e ol

eoch

emic

al a

nd b

iodi

esel

indu

stry

. In

2016

, a to

tal o

f 1 1

62 m

illion

lite

rs o

f was

te o

il ha

ve b

een

colle

cted

.

53BI

OFU

EL/B

IOEN

ERG

YM

ayBr

azil

Rese

arch

& D

evel

opm

ent –

bio

dies

el p

urity

: Br

azilia

n sc

ient

ists

dev

elop

ed a

new

met

hod

for v

erify

ing

the

purit

y an

d qu

ality

of b

iodi

esel

. The

det

ectio

n of

raw

veg

etab

le o

ils in

bio

dies

el –

as

oppo

sed

to re

fined

, tra

ns-e

ster

ified

oil –

is s

aid

to b

e cr

ucia

l as

the

pres

ence

of s

uch

oils

low

ers

the

qual

ity o

f the

fuel

, inc

reas

es

pollu

tion

and

can

caus

e da

mag

e to

eng

ines

. The

new

ly d

evel

oped

det

ectio

n m

etho

d us

es n

ucle

ar m

agne

tic

reso

nanc

e sp

ectro

scop

y.54

BIO

FUEL

/BIO

ENER

GY

May

Egyp

tBi

odie

sel f

eeds

tock

– ja

troph

a oi

l: A

ccor

ding

to m

edia

repo

rts, t

he N

atio

nal R

esea

rch

Cen

tre o

f Egy

pt

deve

lope

d a

jatro

pha

oil-b

ased

fuel

sui

tabl

e fo

r airp

lane

s. T

he p

roje

ct in

clud

ed re

finin

g ja

troph

a oi

l to

mak

e it

resi

st fr

eezin

g un

til a

t lea

st –

45°

deg

rees

Cel

sius

. Rep

orte

dly,

the

oils

free

zing

poin

t has

bee

n lo

wer

ed

thro

ugh

a th

erm

al c

rack

ing

proc

ess,

plu

s th

e in

trodu

ctio

n of

che

mic

al a

dditi

ves.

55

BIO

FUEL

/BIO

ENER

GY

May

Italy

Biod

iese

l fee

dsto

ck –

use

d oi

ls/fa

ts:

Italy

’s N

atio

nal C

onso

rtium

for t

he C

olle

ctio

n an

d Tr

eatm

ent o

f Use

d O

ils a

nd F

ats

(CO

NO

E) s

igne

d a

Mem

oran

dum

of U

nder

stan

ding

to s

uppl

y us

ed v

eget

able

oils

and

fats

to

mul

tinat

iona

l oil/

gas

com

pany

EN

I. Th

e co

mpa

ny, w

hich

has

exp

erie

nce

in p

rodu

cing

rene

wab

le d

iese

l, je

t fu

el a

nd liq

uefie

d pe

trole

um g

as fr

om p

alm

oil,

pla

ns to

pro

cess

app

roxi

mat

ely

1 m

illion

tonn

es o

f use

d oi

ls/

fats

ann

ually

, sta

rting

in 2

018.

Rep

orte

dly,

the

new

par

tner

ship

als

o in

clud

es jo

int a

ctiv

ities

to p

rom

ote

the

colle

ctio

n of

use

d oi

l/fat

at t

he h

ouse

hold

leve

l, w

here

the

prod

uct h

abitu

ally

goe

s to

was

te. E

NI e

xpec

ts

to a

chie

ve s

igni

fican

t red

uctio

ns in

car

bon

emis

sion

s an

d fre

sh w

ater

con

sum

ptio

n by

sw

itchi

ng to

use

d oi

ls/fa

ts.

56BI

OFU

EL/B

IOEN

ERG

YM

aySi

ngap

ore

Biod

iese

l fee

dsto

ck –

use

d oi

ls/fa

ts:

Air c

arrie

r Sin

gapo

re A

irlin

es, i

n pa

rtner

ship

with

Sin

gapo

re’s

Civ

il Av

iatio

n Au

thor

ity, s

tarte

d op

erat

ing

a se

ries

of b

iofu

el-p

ower

ed in

terc

ontin

enta

l flig

hts.

The

flig

hts

will

be

pow

ered

by

a bl

end

of c

onve

ntio

nal j

et fu

el, h

ydro

-pro

cess

ed e

ster

s an

d fa

tty a

cids

pro

duce

d fro

m u

sed

cook

ing

oil.

The

proj

ect i

s ge

ared

tow

ards

redu

cing

the

carri

er’s

carb

on e

mis

sion

s.

Oilcrops complex: Policy changes and industry measures - Annual compendium 2017 57

No.

Dom

ain

Mon

thC

ount

ryD

escr

iptio

n *

57BI

OFU

EL/B

IOEN

ERG

YJu

neC

hina

Biod

iese

l fee

dsto

ck –

use

d oi

ls/fa

ts:

A su

bsid

iary

of C

hina

’s st

ate-

owne

d oi

l com

pany

Sin

opec

is p

lann

ing

to s

et u

p a

used

coo

king

oil

(UC

O) b

iofu

el p

lant

in E

aste

rn C

hina

. The

pla

nt w

ould

con

vert

100

000

tonn

es

of U

CO

into

30

000

tonn

es o

f avi

atio

n-gr

ade

biof

uel a

yea

r. Re

porte

dly,

the

fuel

wou

ld b

e so

ld to

airl

ines

op

erat

ing

long

-hau

l int

erna

tiona

l flig

hts,

esp

ecia

lly to

cou

ntrie

s th

at c

harg

e hi

gh e

mis

sion

taxe

s.58

BIO

FUEL

/BIO

ENER

GY

Augu

stIn

done

sia,

Jap

anBi

odie

sel f

eeds

tock

– p

alm

kern

el s

hell:

In

done

sia’

s oi

l pal

m in

dust

ry is

look

ing

into

the

pos

sibi

lity

of

expa

ndin

g sa

les

of p

alm

kern

el s

hell

to J

apan

. Rep

orte

dly,

unde

rpin

ned

by G

over

nmen

t pol

icie

s ca

lling

for

a hi

gher

rene

wab

le e

nerg

y po

rtion

in th

e co

untry

’s en

ergy

mix

, Jap

an’s

impo

rt de

man

d fo

r pal

mke

rnel

she

ll is

gro

win

g as

bio

mas

s po

wer

pla

nts

use

the

prod

uct a

s bi

oene

rgy

feed

stoc

k.59

BIO

FUEL

/BIO

ENER

GY

Augu

stPh

ilippi

nes

Biod

iese

l fee

dsto

ck –

nat

iona

l leg

isla

tion:

In

the

Philip

pine

s, th

e na

tiona

l fed

erat

ion

of in

dust

ries

urge

d th

e G

over

nmen

t to

revi

ew th

e pr

oduc

t spe

cific

atio

n in

the

coun

try’s

Biof

uels

Act

with

a v

iew

to in

clud

e pa

lm

oil a

s a

biod

iese

l fee

dsto

ck in

add

ition

to c

ocon

ut o

il. T

he p

rivat

e se

ctor

vie

ws

palm

oil

as a

n ec

onom

ical

al

tern

ativ

e to

coc

onut

oil.

Rep

orte

dly,

chro

nic

shor

tage

s in

dom

estic

coc

onut

oil s

uppl

ies r

elat

ive

to d

eman

d ha

ve d

riven

up

coco

nut o

il pric

es –

ham

perin

g gr

owth

in b

iodi

esel

pro

duct

ion

and

pree

mpt

ing

the

plan

ned

intro

duct

ion

of h

ighe

r ble

ndin

g m

anda

tes

(see

MPP

U O

ct.’1

5 &

Aug.

’17)

. Low

-pric

ed p

alm

oil,

by

cont

rast

, is

sai

d to

be

wid

ely

avai

labl

e, a

nd p

erm

issi

on to

use

that

oil

as b

iodi

esel

feed

stoc

k w

ould

allo

w to

cha

nnel

m

ore

coco

nut o

il to

war

ds th

e pr

oduc

tion

of h

igh-

valu

e ad

ded

prod

ucts

for e

xpor

t.60

BIO

FUEL

/BIO

ENER

GY

Nov

embe

rAu

stra

lia, C

anad

a,

Uni

ted

Stat

esAv

iatio

n fu

el fe

edst

ock

– ca

rinat

a oi

l: A

ustra

lia’s

natio

nal a

ir ca

rrier

and

a C

anad

ian

seed

com

pany

hav

e jo

ined

forc

es to

laun

ch b

rass

ica

carin

ata

culti

vatio

n fo

r avi

atio

n fu

el p

rodu

ctio

n in

Aus

tralia

. Car

inat

a is

a

non-

food

, ind

ustri

al-ty

pe o

ilsee

d su

itabl

e fo

r pro

duci

ng re

new

able

die

sel,

espe

cial

ly a

viat

ion

jet f

uel (

see

also

MPP

U D

ec.’1

2, D

ec.’1

3 &

June

.’17)

. The

targ

et is

to g

row

car

inat

a se

ed o

n 40

0 00

0 he

ctar

es o

f lan

d,

ultim

atel

y pr

oduc

ing

abou

t 18

0 00

0 to

nnes

of

bioj

et f

uel p

er y

ear.

Car

inat

a cr

ushi

ng is

als

o ex

pect

ed

to y

ield

a h

igh-

prot

ein

non-

GM

oilm

eal f

or A

ustra

lia’s

expa

ndin

g liv

esto

ck m

arke

t. A

sepa

rate

res

earc

h pr

ojec

t has

bee

n la

unch

ed in

the

Uni

ted

Stat

es to

exp

lore

car

inat

a cu

ltiva

tion

oppo

rtuni

ties

in th

e co

untry

’s So

uthe

ast.

Indu

stry

exp

erts

reck

on th

at d

eman

d fo

r car

inat

a co

uld

expa

nd ra

pidl

y, ag

ains

t the

bac

kdro

p of

glo

bal a

irlin

e ca

rbon

redu

ctio

n co

mm

itmen

ts a

nd li

mite

d su

pplie

s of

oth

er fe

edst

ock

such

as

anim

al fa

t an

d w

aste

oil.

61BI

OFU

EL/B

IOEN

ERG

YN

ovem

ber

Braz

ilRe

sear

ch &

Dev

elop

men

t –

soy-

base

d et

hano

l: A

Bra

zilia

n co

mpa

ny in

form

ed th

at it

will

be re

ady

to

prod

uce

hydr

ous

etha

nol f

rom

soy

bean

s in

tw

o ye

ars’

tim

e. T

he c

ompa

ny p

lans

to

sell

the

prod

uct

as

trans

porta

tion

fuel

and

as

raw

mat

eria

l for

a v

arie

ty o

f ind

ustri

al a

pplic

atio

ns.

62BI

OFU

EL/B

IOEN

ERG

YN

ovem

ber

Chi

naAv

iatio

n fu

el/b

iodi

esel

feed

stoc

k –

used

oils

/fats

: C

hina

has

ope

rate

d its

firs

t cro

ss-o

cean

pas

seng

er

fligh

t po

wer

ed b

y je

t fu

el c

onta

inin

g 15

per

cent

of

rene

wab

le d

iese

l pro

duce

d fo

rm w

aste

coo

king

oil

(see

also

MPP

U M

ar.’1

4 &

July’

17).

Sino

pec,

the

stat

e-ow

ned

oil r

efini

ng c

ompa

ny p

rodu

cing

the

biof

uel,

poin

ted

out t

hat s

ecur

ing

suffi

cien

t, st

able

sup

plie

s of

use

d co

okin

g oi

l on

the

dom

estic

mar

ket m

ay p

ose

chal

leng

es. F

urth

erm

ore,

acc

ordi

ng to

indu

stry

exp

erts

, tax

exe

mpt

ions

and

sta

te s

ubsi

dies

will

be n

eede

d to

sup

port

the

deve

lopm

ent

of t

he c

ount

ry’s

avia

tion-

grad

e bi

ofue

l sec

tor.

Sino

pec

also

sta

rted

sellin

g ro

ad tr

ansp

orta

tion

dies

el m

ade

from

use

d co

okin

g oi

l. Re

porte

dly,

the

fuel

is b

eing

sol

d at

sel

ecte

d ga

s st

atio

ns a

t a p

rice

of C

NY

5.72

per

lite

r (U

SD 0

.87)

, whi

ch c

ompa

res

to C

NY

6.02

(USD

0.9

1) c

harg

ed fo

r re

gula

r die

sel.

63BI

OFU

EL/B

IOEN

ERG

YDe

cem

ber

Indi

aRe

sear

ch a

nd D

evel

opm

ent –

enz

yme-

assi

sted

bio

dies

el p

rodu

ctio

n: A

n In

dian

com

pany

em

bark

ed o

n bi

odie

sel p

rodu

ctio

n fro

m lo

w-g

rade

was

te fe

edst

ock

usin

g a

new

ly d

evel

oped

, enz

yme-

base

d te

chni

que.

As

feed

stoc

k, th

e co

mpa

ny in

tend

s to

use

was

te o

ils w

ith a

hig

h co

nten

t of f

ree

fatty

aci

d, in

clud

ing

brow

n gr

ease

, use

d co

okin

g oi

l and

pal

m fa

tty a

cid.

58 Oilcrops complex: Policy changes and industry measures - Annual compendium 2017

No.

Dom

ain

Mon

thC

ount

ryD

escr

iptio

n *

64O

VERS

EAS

INVE

STM

ENT

& TR

ADE

PRO

MO

TIO

NSe

ptem

ber

Chi

na, B

razil

Ove

rsea

s ac

quis

ition

s:

A pr

ivat

ely

owne

d C

hine

se c

ompa

ny a

nnou

nced

pla

ns t

o ac

quire

mor

e ag

ri-bu

sine

ss fi

rms

in B

razil

, afte

r it c

ompl

eted

the

acqu

isiti

on o

f tw

o su

ch fi

rms

last

yea

r. Re

porte

dly,

last

yea

r’s

take

over

s al

low

ed th

e C

hine

se c

ompa

ny to

sec

ure

a co

mbi

ned

seve

n-m

illion

-tonn

es o

utpu

t of B

razil

ian

soyb

ean

and

mai

ze, a

figu

re th

e co

mpa

ny in

tend

s to

rais

e to

10

milli

on in

201

8 an

d, p

ossi

bly,

30 m

illion

in

the

follo

win

g ye

ars.

In p

aral

lel w

ith c

ompa

rabl

e ac

quis

ition

s m

ade

by C

hine

se s

tate

-ow

ned

firm

s in

rece

nt

year

s (s

ee M

PPU

Nov

.’14

& Fe

b’16

), th

ese

inve

stm

ents

are

aim

ed a

t ra

isin

g th

e co

untry

’s pr

esen

ce in

in

tern

atio

nal g

rain

and

oils

eeds

mar

kets

at a

tim

e w

hen

Chi

na’s

depe

nden

ce o

n im

ports

to m

eet d

omes

tic

dem

and

has

clim

bed

to u

npre

cede

nted

leve

ls.

65O

VERS

EAS

INVE

STM

ENT

& TR

ADE

PRO

MO

TIO

NN

ovem

ber

Chi

na, B

razil

Ove

rsea

s op

erat

ions

: C

hina

’s st

ate-

owne

d gr

ain

tradi

ng g

roup

CO

FCO

Int

erna

tiona

l, pl

ans

to r

aise

th

e vo

lum

e of

soy

bean

s it

sour

ces

from

Bra

zil’s

Mat

o G

ross

o st

ate

from

cur

rent

ly 4

milli

on t

onne

s to

7.

2 m

illion

ton

nes

over

the

nex

t fiv

e ye

ars.

Fur

ther

mor

e, a

gro

up o

f C

hine

se in

vest

ors

held

tal

ks w

ith

Braz

ilian

com

pani

es a

bout

fina

ncin

g th

e co

nstru

ctio

n of

30

grai

n st

orag

e fa

cilit

ies

in M

ato

Gro

sso.

At

the

glob

al le

vel,

by t

he y

ear

2022

, C

OFC

O I

nter

natio

nal i

nten

ds t

o do

uble

the

am

ount

of

agric

ultu

ral

com

mod

ities

it b

uys

dire

ctly

from

farm

ers,

thus

redu

cing

its

relia

nce

on tr

aditi

onal

glo

bal t

radi

ng h

ouse

s.

66O

VERS

EAS

INVE

STM

ENT

& TR

ADE

PRO

MO

TIO

NN

ovem

ber

Tuni

sia

Trad

e pr

omot

ion:

Tu

nisi

a’s

oliv

e oi

l ind

ustry

has

laun

ched

a p

rogr

amm

e to

pro

mot

e sa

les

of p

acka

ged

extra

virg

in o

live

oil t

o th

e Ja

pane

se m

arke

t. Th

e ta

rget

is to

mee

t five

per

cent

of t

he A

sian

nat

ion’

s im

port

dem

and

(com

pare

d to

less

than

one

per

cent

at p

rese

nt).

67TR

ANSP

ORT

IN

FRAS

TRU

CTU

REM

arch

Arge

ntin

aPr

ivat

e se

ctor

inv

estm

ent:

Acc

ordi

ng t

o pr

ivat

e in

dust

ry e

stim

ates

, Ar

gent

ina’

s gr

ains

and

oils

eeds

tra

nspo

rtatio

n se

ctor

will

rece

ive

ARS

27 b

illion

(USD

1.7

6 bi

llion)

in p

rivat

e in

vest

men

ts fo

r the

201

6–17

pe

riod.

Aim

ed a

t mak

ing

the

coun

try’s

trans

ports

logi

stic

s an

d pr

oces

sing

ope

ratio

ns m

ore

effici

ent,

the

inve

stm

ents

will

conc

ern

port

faci

litie

s, ro

ad a

nd ra

il net

wor

ks, t

ruck

term

inal

s, w

areh

ouse

s an

d pr

oces

sing

pl

ants

.68

TRAN

SPO

RT

INFR

ASTR

UC

TURE

Dece

mbe

rBr

azil

Priv

ate

sect

or in

vest

men

t: A

glo

bal a

gri-t

rade

com

pany

has

file

d en

viro

nmen

tal i

mpa

ct s

tudi

es w

ith th

e au

thor

ities

of

the

stat

e of

Par

á co

ncer

ning

the

con

stru

ctio

n of

a n

ew r

iver

por

t fa

cilit

y. Lo

cate

d in

the

Ba

rcar

ena

regi

on, t

he p

roje

ct w

ould

com

plem

ent r

ecen

t pub

lic a

nd p

rivat

e eff

orts

to d

evel

op th

e co

untry

’s no

rther

n ex

port

corri

dors

, or ‘

Arco

Nor

te’ (

see

MPP

U J

uly

& Se

p.’1

7). T

he n

ew fa

cilit

y w

ould

rece

ive

barg

es

load

ed in

the

upr

iver

tra

nssh

ipm

ent

term

inal

of

Miri

titub

a, c

arry

ing

grai

ns c

omin

g pr

imar

ily f

rom

Mat

o G

ross

o st

ate.

The

por

t’s a

nnua

l han

dlin

g ca

paci

ty w

ould

am

ount

to 6

milli

on to

nnes

of g

rain

s.

69M

ARKE

TS &

FIN

ANC

EJa

nuar

yEu

rope

an U

nion

Fu

ture

s m

arke

ts:

The

pan-

Euro

pean

exc

hang

e Eu

rone

xt te

mpo

raril

y su

spen

ded

its ra

pese

ed fu

ture

s an

d op

tions

to re

view

, tog

ethe

r with

indu

stry

pla

yers

, the

con

tract

s’ te

chni

cal s

peci

ficat

ions

– in

par

ticul

ar th

e oi

l con

tent

bas

is fo

r rap

esee

d.

70M

ARKE

TS &

FIN

ANC

EJa

nuar

yIn

dia

Futu

res

mar

kets

: Af

ter r

ecei

ving

app

rova

l fro

m th

e Se

curit

ies

and

Exch

ange

Boa

rd o

f Ind

ia (S

EBI),

the

Nat

iona

l Com

mod

ity &

Der

ivativ

es E

xcha

nge

(NC

DEX)

and

the

Mul

ticom

mod

ity E

xcha

nge

(MC

X) in

form

ed

that

they

inte

nd to

laun

ch a

futu

res

cont

ract

in c

asto

r see

d to

cat

er to

the

need

of t

he c

asto

r ind

ustry

for

pric

e di

scov

ery

and

risk

man

agem

ent i

nstru

men

ts.

71M

ARKE

TS &

FIN

ANC

EM

arch

Chi

naFu

ture

s m

arke

ts:

Follo

win

g ap

prov

al b

y C

hina

’s se

curit

ies

regu

lato

r, th

e Da

lian

Com

mod

ity E

xcha

nge

(DC

E) h

as la

unch

ed a

soy

mea

l opt

ions

con

tract

s on

31

Mar

ch 2

017

(see

also

MPP

U J

an.’1

7).

Opt

ion

cont

ract

s gr

ant t

he ri

ght b

ut n

ot th

e ob

ligat

ions

to b

uy a

fina

ncia

l con

tract

in th

e fu

ture

. DC

E’s

initi

ativ

e is

m

eant

to h

elp

the

proc

ess

of p

rice

disc

over

y an

d to

pro

vide

agr

icul

tura

l com

pani

es w

ith m

ore

flexi

ble

risk

man

agem

ent t

ools

.

Oilcrops complex: Policy changes and industry measures - Annual compendium 2017 59

No.

Dom

ain

Mon

thC

ount

ryD

escr

iptio

n *

72M

ARKE

TS &

FIN

ANC

EM

ayC

hina

Futu

res

mar

kets

: C

hina

’s Da

lian

Futu

res

Exch

ange

(DC

E) p

lans

to

chan

ge t

he c

ontra

ct r

ules

for

its

soyb

ean

futu

res

in a

bid

to h

elp

inve

stor

s he

dge

the

risk

in s

oybe

an im

port

and

prov

ide

a do

mes

tic p

ricin

g be

nchm

ark

for s

oybe

an. D

etai

ls o

f the

env

isag

ed c

hang

es a

re s

till t

o be

pro

vide

d.

73M

ARKE

TS &

FIN

ANC

EM

ayEu

rope

an U

nion

Futu

res

mar

kets

: Th

e pa

n-Eu

rope

an e

xcha

nge

Euro

next

has

laun

ched

rap

esee

d op

tions

con

tract

s fo

r de

liver

y in

201

9, w

ithou

t cha

ngin

g th

eir s

peci

ficat

ions

. The

con

tract

s ha

d be

en s

uspe

nded

ear

lier t

his

year

to

revi

ew th

eir t

echn

ical

term

s (s

ee M

PPU

Feb

.’17)

. Rep

orte

dly,

mar

ket p

artic

ipan

ts c

ould

not

agr

ee o

n po

tent

ial c

hang

es to

the

oil c

onte

nt b

asis

spe

cifie

d in

the

cont

ract

.

74M

ARKE

TS &

FIN

ANC

EM

ayIn

dia

Futu

res

mar

kets

: In

dia’

s N

atio

nal C

omm

odity

and

Der

ivativ

es E

xcha

nge

(NC

DEX)

ann

ounc

ed th

e la

unch

of

a fu

ture

s co

ntra

ct fo

r mus

tard

seed

cak

e. A

s th

e m

arke

t of t

he a

nim

al fe

ed is

sub

ject

to c

onsi

dera

ble

pric

e vo

latil

ity, t

he n

ew fu

ture

s co

ntra

ct is

aim

ed to

allo

w p

rodu

cers

and

trad

ers

to h

edge

thei

r ris

k.

75M

ARKE

TS &

FIN

ANC

EN

ovem

ber

Uni

ted

Stat

esFu

ture

s m

arke

ts:

CM

E G

roup

(Chi

cago

Mer

cant

ile E

xcha

nge)

info

rmed

tha

t, on

31

Oct

ober

201

7, t

he

max

imum

dai

ly p

rice

chan

ge p

erm

itted

on

soyb

ean

cont

ract

s at

CBO

T (C

hica

go B

oard

of T

rade

) was

rais

ed

from

65

US

cent

s pe

r bus

hel t

o 70

US

cent

s, w

hile

the

limit

for s

oym

eal w

as lo

wer

ed fr

om U

SD 2

5 pe

r ton

ne

to U

SD 2

0 pe

r ton

ne. T

he n

ew li

mits

will

rem

ain

in e

ffect

unt

il M

ay 2

018.

76

R&D

– pe

st c

ontro

lJa

nuar

yEu

rope

an U

nion

Impa

ct o

f pe

stic

ide

ban:

A

rese

arch

con

sulta

ncy

revi

ewed

, with

sup

port

from

the

priv

ate

sect

or, t

he

impa

ct o

f the

EU

’s de

cisi

on (s

ee M

PPU

Jun

e’13

) to

tem

pora

rily

ban

neon

icot

inoi

d-ba

sed

pest

icid

es –

a

grou

p of

pes

ticid

es u

sed

prim

arily

on

rape

seed

. Acc

ordi

ng t

o th

e co

nsul

tanc

y fir

m, t

he b

an h

as le

d to

si

gnifi

cant

yie

ld r

educ

tions

, cr

op q

ualit

y lo

sses

and

incr

ease

d in

sect

icid

e ap

plic

atio

ns in

EU

rap

esee

d cu

ltiva

tion.

Alle

gedl

y, th

e ba

n al

so c

ause

d a

shift

of p

rodu

ctio

n ou

tsid

e th

e EU

, trig

gerin

g th

e co

nver

sion

of

gra

ssla

nd a

nd o

ther

bio

dive

rsity

-ric

h na

tura

l hab

itats

to a

rabl

e la

nd. T

he s

tudy

con

clud

es th

at h

olis

tic

impa

ct a

sses

smen

ts –

look

ing

at a

ll ec

onom

ic a

nd e

nviro

nmen

tal e

ffect

s –

ough

t to

be c

ondu

cted

bef

ore

pest

icid

e re

stric

tions

are

impl

emen

ted.

77R&

D –

pest

con

trol

Mar

chAu

stra

liaRa

pese

ed –

blac

kleg

resi

stan

ce: R

epor

tedl

y, Au

stra

lian

scie

ntis

ts fo

und

new

rape

seed

gen

es fo

r res

ista

nce

to ‘b

lack

leg’

, a m

ajor

pes

t thr

eat t

o ra

pese

ed c

ultiv

atio

n in

Aus

tralia

and

els

ewhe

re. T

he m

appi

ng o

f gen

es

for r

esis

tanc

e vi

a m

olec

ular

mar

kers

is s

aid

to h

elp

deve

lop

varie

ties

with

last

ing

resi

stan

ce to

the

dise

ase.

Th

e re

sear

ch p

roje

ct b

enefi

tted

from

pub

lic fu

ndin

g.

78

R&D

– va

rieta

l res

earc

hM

arch

Uni

ted

Stat

esRa

pese

ed –

var

ieta

l res

earc

h:

In th

e U

nite

d St

ates

, USD

A’s

Nat

iona

l Ins

titut

e of

Foo

d an

d Ag

ricul

ture

(N

IFA)

ann

ounc

ed th

e av

aila

bilit

y of

up

to U

SD 0

.77

milli

on fo

r fun

dam

enta

l and

app

lied

rese

arch

to h

elp

deve

lop

new

rape

seed

var

ietie

s, e

xpan

d th

e cr

op’s

grow

ing

regi

on, a

nd la

unch

new

com

mer

cial

rape

seed

-ba

sed

prod

ucts

. App

licat

ions

mus

t inc

lude

bot

h re

sear

ch a

nd e

xten

sion

ser

vice

s.79

R&D

– va

rieta

l res

earc

hM

ayIn

done

sia

Hig

h-yi

eldi

ng o

il pa

lm:

An In

done

sian

oil

palm

firm

repo

rted

that

it d

evel

oped

a n

ew v

arie

ty o

f oil

palm

ca

pabl

e to

incr

ease

pal

m o

il yi

elds

by

up to

dou

ble

the

curre

nt le

vels

. Alle

gedl

y, th

e ne

w m

ater

ial,

whi

ch

has

been

dev

elop

ed u

sing

trad

ition

al p

lant

bre

edin

g m

etho

ds, y

ield

s 11

–13

tonn

es o

f cru

de p

alm

oil

per

ha p

er y

ear d

urin

g th

e pa

lm’s

prim

e ag

e (1

0–18

yea

rs),

with

oil

extra

ctio

n le

vels

rang

ing

32–3

6 pe

rcen

t. Re

porte

dly,

this

com

pare

s to

a c

urre

nt c

apac

ity o

f 7.5

–8 to

nnes

per

ha

unde

r opt

imal

con

ditio

ns a

nd a

co

untry

wid

e av

erag

e le

vel o

f les

s th

an 4

tonn

es. S

eedl

ings

als

o re

ach

mat

urity

fast

er –

sup

pose

dly

afte

r 24

mon

ths

as o

ppos

ed to

the

curre

nt in

dust

ry a

vera

ge o

f 30

mon

ths.

Rep

orte

dly,

the

new

clo

nes

have

be

en re

gist

ered

in In

done

sia’

s C

atal

ogue

of S

eeds

and

cou

ld b

e av

aila

ble

at la

rge-

scal

e w

ithin

five

yea

rs.

Stag

natin

g yi

eld

leve

ls re

pres

ent a

maj

or c

once

rn in

the

palm

oil i

ndus

try w

orld

wid

e (a

nd in

Sou

thea

st A

sia

in p

artic

ular

) – e

spec

ially

in re

cent

yea

rs, a

s gr

owth

via

are

a ex

pans

ion

star

ted

to fa

ce e

nviro

nmen

tal a

nd

soci

al c

halle

nges

.

60 Oilcrops complex: Policy changes and industry measures - Annual compendium 2017

No.

Dom

ain

Mon

thC

ount

ryD

escr

iptio

n *

80R&

D –

varie

tal r

esea

rch

May

Glo

bal

Sunfl

ower

seed

gen

ome:

Re

porte

dly,

an in

tern

atio

nal t

eam

of

scie

ntis

ts p

ublis

hed

the

first

sun

flow

er

geno

me

sequ

ence

. Acc

ess

to th

e ge

nom

e is

exp

ecte

d to

ass

ist f

utur

e re

sear

ch p

rogr

amm

es u

sing

gen

etic

to

ols

to im

prov

e th

e pl

ant’s

cro

p re

silie

nce

and

oil p

rodu

ctio

n.81

R&D

– va

rieta

l res

earc

hJu

neIn

dia

Hig

h-ol

eic

saffl

ower

see

d: T

he In

dian

Inst

itute

of O

ilsee

ds R

esea

rch

deve

lope

d – u

sing

trad

ition

al b

reed

ing

met

hods

– th

ree

high

-ole

ic s

afflow

er li

nes

suita

ble

for c

ultiv

atio

n un

der I

ndia

n co

nditi

ons.

Rep

orte

dly,

the

new

lines

con

tain

up

to 7

5 pe

rcen

t of o

leic

fatty

aci

d – a

s opp

osed

to b

etw

een

16–2

0 pe

rcen

t in

conv

entio

nal

varie

ties.

Hig

h-ol

eic

oils

are

sou

ght b

y fo

od m

anuf

actu

rers

, ret

aile

rs a

nd c

onsu

mer

s al

ike,

than

ks to

thei

r su

itabi

lity

for d

eep-

fryin

g an

d va

rious

ole

oche

mic

al u

ses,

thei

r ext

ende

d sh

elf-l

ife, a

nd th

eir w

hole

som

e he

alth

pro

file

of th

e re

spec

tive

oils

. Giv

en th

at th

e re

sear

ch b

enefi

ted

from

priv

ate

sect

or fu

ndin

g, tw

o of

th

e ne

w v

arie

ties

have

bee

n lic

ense

d –

for t

he fi

rst t

hree

yea

rs –

to a

priv

ate

firm

that

alre

ady

star

ted

larg

e-sc

ale

com

mer

cial

pro

duct

ion.

82R&

D –

varie

tal r

esea

rch

July

Indo

nesi

aIm

prov

ed c

ocon

ut p

alm

: Th

e In

done

sian

Pal

mae

Res

earc

h In

stitu

te is

pre

parin

g th

e co

mm

erci

al re

leas

e of

tw

o ne

w c

ocon

ut v

arie

ties

know

n un

der t

he n

ames

‘Lam

pana

h’ a

nd ‘B

ido’

. Dev

elop

ed in

col

labo

ratio

n w

ith

the

prov

inci

al a

gric

ultu

ral o

ffice

s of

Ace

h an

d N

orth

Mal

uku,

the

form

er v

arie

ty is

cha

ract

erize

d by

sup

erio

r fru

it be

arin

g, w

hile

the

latte

r sta

nds

out f

or e

arly

mat

urity

and

slo

w s

tem

gro

wth

, acc

ordi

ng to

the

agen

cy.

83R&

D –

varie

tal r

esea

rch

Sept

embe

rG

hana

Afl

atox

in-r

esis

tant

gro

undn

ut:

Gha

na’s

Cro

p Re

sear

ch In

stitu

te h

as re

leas

ed a

new

afla

toxi

n-re

sist

ant

grou

ndnu

t var

iety

– a

n ac

hiev

emen

t tha

t cou

ld le

ad to

a re

viva

l of G

hana

’s gr

ound

nut e

xpor

ts, a

ccor

ding

to

the

inst

itute

’s sc

ient

ists

. In

gene

ral,

high

leve

ls o

f afla

toxi

n co

ntam

inat

ion

cons

titut

e a

maj

or c

halle

nge

for

grou

ndnu

t pro

duce

rs a

cros

s Af

rica

and

Asia

, as

they

bar

thei

r pro

duct

s fro

m e

nter

ing

inte

rnat

iona

l mar

kets

.84

R&D

– va

rieta

l res

earc

hDe

cem

ber

Uni

ted

Stat

esH

igh-

olei

c/lo

w-li

nole

ic s

oybe

an:

Usi

ng g

ene-

editi

ng t

echn

olog

ies,

a c

ompa

ny in

the

Uni

ted

Stat

es is

w

orki

ng o

n a

new

soy

bean

var

iety

cha

ract

erize

d by

bot

h hi

gh o

leic

aci

d co

nten

t an

d lo

w li

nole

ic a

cid

cont

ent –

a fa

tty a

cid

profi

le th

at is

kno

wn

to in

crea

se a

n oi

l’s s

helf

life

and

fryin

g ca

pabi

lity,

with

out h

avin

g to

be

hydr

ogen

ated

(i.e

. avo

idin

g th

e fo

rmat

ion

of h

arm

ful t

rans

fats

). G

iven

that

gen

e-ed

iting

tech

niqu

es

are

not s

ubje

ct to

regu

latio

n by

USD

A, th

e co

mpa

ny e

xpec

ts th

e ap

prov

al p

roce

ss fo

r the

new

var

iety

to b

e sh

ort a

nd p

lans

to b

egin

com

mer

cial

sal

es la

ter t

his

year

.85

R&D

– pr

oduc

t dev

elop

men

tM

arch

Aust

ralia

Soyb

ean

oil

– in

dust

rial

appl

icat

ions

(no

n-fo

od):

In

Aust

ralia

, re

sear

cher

s de

velo

ped

a te

chno

logy

to

pro

duce

gra

phen

e fro

m s

oybe

an o

il. G

raph

ene

cons

ists

of

sing

le la

yer

carb

on fi

lms

with

pro

mis

ing

appl

icat

ions

in t

he s

emic

ondu

ctor

, el

ectro

nics

, ba

ttery

ene

rgy,

and

com

posi

tes

indu

strie

s. R

epor

tedl

y, th

e hi

gh c

ost

of c

onve

ntio

nal

grap

hene

pro

duct

ion

repr

esen

ted

the

prin

cipl

e hu

rdle

in

the

prod

uct’s

co

mm

erci

aliza

tion

until

now

. By

cont

rast

, the

new

tech

nolo

gy is

sai

d to

be

less

com

plex

, ine

xpen

sive

and

ba

sed

on re

new

able

feed

stoc

k. A

llege

dly,

the

new

met

hod

allo

ws

to p

rodu

ce g

raph

ene

from

any

type

of

used

coo

king

oil.

The

rese

arch

was

con

duct

ed w

ith p

ublic

fund

ing.

86

R&D

– pr

oduc

t dev

elop

men

tM

ayAu

stra

liaO

meg

a3 r

apes

eed

– fe

ed u

se:

Aus

tralia

n se

ed c

ompa

ny N

usee

d is

filin

g fo

r re

gula

tory

app

rova

l of

omeg

a-3

bear

ing

rape

seed

in A

ustra

lia, C

anad

a an

d th

e U

nite

d St

ates

and

exp

ects

com

mer

cial

izatio

n to

co

mm

ence

in 2

018

or 2

019.

Rep

orte

dly,

the

new

pro

duct

pro

vide

s lo

ng-c

hain

om

ega-

3 oi

ls s

imila

r to

thos

e fo

und

in fi

sh o

il. C

omm

erci

al a

pplic

atio

ns a

re p

lann

ed in

bot

h aq

uacu

lture

feed

use

s an

d hu

man

nut

ritio

n (s

ee a

lso M

PPU

Dec

.’16)

.87

R&D

– pr

oduc

t dev

elop

men

tM

ayC

anad

aRa

pese

ed m

eal –

feed

use

: Re

sear

ch c

ondu

cted

in C

anad

a su

gges

ts th

at p

ork

prod

ucer

s ca

n re

duce

feed

co

sts

by in

clud

ing

rape

seed

mea

l at h

ighe

r tha

n tra

ditio

nal l

evel

s in

the

ratio

ns o

f lac

tatin

g so

ws

(see

also

M

PPU

Aug

.’15

& M

ar.’1

6).

Oilcrops complex: Policy changes and industry measures - Annual compendium 2017 61

No.

Dom

ain

Mon

thC

ount

ryD

escr

iptio

n *

88R&

D –

prod

uct d

evel

opm

ent

May

Can

ada,

Uni

ted

Stat

esC

arin

ata

mea

l – fe

ed u

se: A

Can

adia

n co

mpa

ny g

aine

d ap

prov

al fr

om th

e U

S Fo

od a

nd D

rug

Adm

inis

tratio

n to

com

mer

cial

ize c

arin

ata

mea

l as

a no

n-G

M p

rote

in m

eal f

or b

eef c

attle

feed

in th

e U

nite

d St

ates

. Car

inat

a m

eal,

whi

ch is

sai

d to

mat

ch r

apes

eed

mea

l spe

cific

atio

ns, i

s ob

tain

ed a

s a

by-p

rodu

ct w

hen

bras

sica

carin

ata

is c

rush

ed fo

r oil (

see

also

MPP

U D

ec.’1

3). C

arin

ata

mea

l has

pre

viou

sly

been

app

rove

d in

Can

ada

and

the

Euro

pean

Uni

on. R

epor

tedl

y, re

gion

s ta

rget

ed fo

r car

inat

a cu

ltiva

tion

incl

ude

Sout

h Am

eric

a (w

here

th

e pl

ant c

an b

e gr

own

as a

sec

ond

crop

follo

win

g so

ybea

ns) a

nd N

orth

Am

eric

a, n

otab

ly th

e so

uthe

aste

rn

Uni

ted

Stat

es a

nd th

e no

rther

n Pl

ains

, whi

ch in

clud

es th

e so

uthe

rn C

anad

ian

Prai

ries.

The

cro

p is

alre

ady

culti

vate

d in

Eur

ope,

whe

re th

e oi

l is

used

as

biod

iese

l fee

dsto

ck.

89R&

D –

prod

uct d

evel

opm

ent

May

Glo

bal

Hig

h-ol

eic

grou

ndnu

t: S

nack

food

pro

duce

r Mar

s in

form

ed it

was

mov

ing

tow

ards

usi

ng e

xclu

sive

ly h

igh-

olei

c gr

ound

nuts

in s

ome

of it

s pr

oduc

ts. H

igh-

olei

c gr

ound

nuts

are

val

ued

for t

heir

heal

th p

rofil

e, n

otab

ly

thei

r hig

h co

nten

t of u

nsat

urat

ed fa

ts. F

urth

erm

ore,

hig

h-ol

eic

oils

enj

oy a

hig

h ox

idat

ive

stab

ility

and

don’

t ne

ed to

be

hydr

ogen

ated

, hen

ce p

reve

ntin

g th

e fo

rmat

ion

of tr

ans

fatty

aci

ds. T

he c

ompa

ny re

porte

d th

at

its s

hift

to h

igh-

olei

c gr

ound

nuts

has

bee

n sl

owed

dow

n by

insu

ffici

ent p

rodu

ct a

vaila

bilit

y.90

R&D

– pr

oduc

t dev

elop

men

tJu

neU

nite

d St

ates

Rape

seed

mea

l – fe

ed u

se: I

n th

e U

nite

d St

ates

, a g

roup

of r

esea

rche

rs re

porte

d th

e su

cces

sful

con

vers

ion

of ra

pese

ed m

eal i

nto

a hi

gh-p

rote

in fe

ed a

dditi

ve. A

llege

dly,

the

rese

arch

pro

ject

det

erm

ined

the

optim

al

fung

al c

ultu

re t

o re

duce

und

esira

ble

gluc

osin

olat

es, fi

ber

and

resi

dual

sug

ars,

whi

le r

aisi

ng t

he p

rote

in

cont

ent

and

nutri

tiona

l val

ue o

f the

mea

l. Th

e co

nver

sion

pro

cess

tak

es p

lace

und

er s

olid

-sta

te fu

ngal

in

cuba

tion

cond

ition

s.

91R&

D –

prod

uct d

evel

opm

ent

Sept

embe

rG

loba

lSo

ybea

n oi

l – in

dust

rial a

pplic

atio

ns (n

on-fo

od):

Glo

bal r

ubbe

r and

tire

com

pany

Goo

dyea

r has

dev

elop

ed

a te

chno

logy

tha

t al

low

s su

bstit

utin

g so

ybea

n oi

l for

pet

role

um-b

ased

oils

in t

he p

rodu

ctio

n of

rub

ber

com

poun

ds f

or t

ires.

The

com

pany

reg

ards

soy

bean

oil

as a

nat

ural

ly d

eriv

ed, c

ost-e

ffect

ive,

car

bon-

neut

ral a

nd re

new

able

raw

mat

eria

l. Re

porte

dly,

the

inco

rpor

atio

n of

soy

bean

oil

allo

ws

to e

nhan

ce th

e pe

rform

ance

of t

ires,

rais

e m

anuf

actu

ring

effici

ency

, and

redu

ce e

nerg

y co

nsum

ptio

n. T

he n

ew te

chno

logy

ha

s be

en d

evel

oped

with

sup

port

from

the

U.S

. Uni

ted

Soyb

ean

Boar

d (a

fede

ral p

rogr

amm

e th

at c

olle

cts

fund

s fro

m s

oybe

an g

row

ers

and

chan

nels

them

into

pro

mot

ion

and

rese

arch

act

iviti

es o

f gen

eral

inte

rest

). 92

R&D

– pr

oduc

t dev

elop

men

tN

ovem

ber

Denm

ark

Soy

– in

dust

rial a

pplic

atio

ns (f

ood)

: A

Dani

sh fo

od in

gred

ient

man

ufac

ture

r has

laun

ched

a s

oy-b

ased

em

ulsi

fier f

or u

se in

indu

stria

l bak

ery p

rodu

cts.

Rep

orte

dly,

the

prod

uct w

as d

evel

oped

to o

ffer a

n al

tern

ativ

e to

trad

ition

al, w

idel

y us

ed la

uric

oil-

base

d em

ulsi

fiers

.93

R&D

– pr

oduc

t dev

elop

men

tN

ovem

ber

Fran

ceO

live

oil –

was

te w

ater

recy

clin

g: A

gro

up o

f Fre

nch

scie

ntis

ts p

rese

nted

a te

chno

logy

that

allo

ws c

onve

rting

w

aste

wat

er fr

om o

live

oil p

rodu

ctio

n –

norm

ally

cla

ssifi

ed a

s a

pollu

tant

– in

to b

iofu

el, b

iofe

rtiliz

er a

nd s

afe

wat

er fo

r use

in a

gric

ultu

ral i

rriga

tion.

94R&

D –

prod

uct d

evel

opm

ent

Nov

embe

rH

olla

ndSh

eanu

t – in

dust

rial a

pplic

atio

ns (f

ood)

: A

Dutc

h oi

ls a

nd fa

ts p

rodu

cer d

evel

oped

a s

hea-

base

d, n

on-

hydr

ogen

ated

fat f

or u

se in

indu

stria

l bak

ery

prod

ucts

. Alle

gedl

y, th

e ne

w p

rodu

ct c

onta

ins

40 p

erce

nt le

ss

satu

rate

d fa

t tha

n co

mpa

rabl

e la

uric

oil-

base

d pr

oduc

ts.

95

R&D

– pr

oduc

t dev

elop

men

tN

ovem

ber

Uni

ted

Stat

esVe

geta

ble

oils

– re

finin

g pr

oces

ses:

In

the

Uni

ted

Stat

es, a

gro

up o

f res

earc

hers

has

dev

elop

ed a

new

fa

mily

of n

atur

ally

der

ived

veg

etab

le o

il stru

ctur

ing

agen

ts. T

he c

arbo

hydr

ate

deriv

ativ

es d

ubbe

d ‘g

elat

ors’

al

low

to s

olid

ify/th

icke

n a

varie

ty o

f veg

etab

le o

ils, t

hus

offer

ing

an a

ltern

ativ

e to

par

tial h

ydro

gena

tion

– a

tech

nolo

gy d

eem

ed h

azar

dous

to h

uman

hea

lth (s

ee a

lso M

PPU

Nov

.’16

& Ja

n.’1

7).

96R&

D –

prod

uct d

evel

opm

ent

Dece

mbe

rC

anad

aFo

od-g

rade

rap

esee

d pr

otei

n:

Can

adia

n re

sear

cher

s de

velo

ped

a m

embr

ane-

base

d pr

oces

s to

obt

ain

food

-gra

de p

rote

in f

rom

def

atte

d ra

pese

ed m

eal.

Cur

rent

ly, d

ue t

o its

poo

r ta

ste

and

the

pres

ence

of

antin

utrie

nts,

rape

seed

mea

l is

excl

usiv

ely

used

as

anim

al fe

ed, n

otw

ithst

andi

ng it

s hi

gh n

utrit

iona

l val

ue.

62 Oilcrops complex: Policy changes and industry measures - Annual compendium 2017

No.

Dom

ain

Mon

thC

ount

ryD

escr

iptio

n *

97R&

D –

prod

uct d

evel

opm

ent

Dece

mbe

rN

orw

ayO

meg

a3 ra

pese

ed –

feed

use

: Ea

rly tr

ials

con

duct

ed in

Nor

way

with

an

omeg

a3-r

ich

oil d

eriv

ed fr

om a

GM

ra

pese

ed d

evel

oped

in A

ustra

lia (s

ee M

PPU

Dec

.’16

& Ju

ne’1

7) w

ould

indi

cate

that

the

prod

uct i

s su

itabl

e fo

r use

as

salm

on fe

ed. R

esul

ts s

ugge

st th

at th

ere

is n

o di

ffere

nce

betw

een

fish

fed

with

trad

ition

al fi

sh o

il (–

sup

plie

s of

whi

ch a

re li

mite

d –)

and

fish

fed

with

the

mod

ified

pla

nt o

il. P

endi

ng re

gula

tory

app

rova

ls,

com

mer

cial

izatio

n of

the

new

rape

seed

var

iety

in th

e U

nite

d St

ates

, Can

ada

and

Aust

ralia

cou

ld s

tart

in

2018

or 2

019.

Rep

orte

dly,

seed

s w

ould

be

sold

to g

row

ers

unde

r lic

ense

, for

seg

rega

ted

culti

vatio

n an

d pr

oces

sing

. 98

R&D

– pr

oduc

t dev

elop

men

tDe

cem

ber

Glo

bal

Hig

h-ol

eic

rape

seed

oil:

In

acco

rdan

ce w

ith g

loba

l ind

ustry

effo

rts to

offe

r foo

d in

gred

ient

s pe

rcei

ved

as

mor

e he

alth

y, a

mul

tinat

iona

l agr

i-bus

ines

s fir

m la

unch

ed a

new

hig

h-ol

eic

rape

seed

oil d

eriv

ed fr

om h

ybrid

se

ed (i

.e. w

ithou

t gen

etic

mod

ifica

tion)

. Acc

ordi

ng to

the

com

pany

, the

new

oil’s

sat

urat

ed fa

t con

tent

is

35 p

erce

nt b

elow

that

of c

onve

ntio

nal r

apes

eed

oil.

Desp

ite it

s lo

w s

atur

ated

fat c

onte

nt, t

he o

il is

sai

d to

offe

rs s

trong

fry

ing

perfo

rman

ce, l

ong

shel

f lif

e an

d fre

sh t

aste

. Fur

ther

mor

e, g

row

ers

of t

he h

ybrid

ra

pese

ed a

re p

rom

ised

of t

heir

high

yie

lds

and

dise

ase

resi

stan

ce q

ualit

y.

* N

ote

that

for r

elat

ed h

isto

ric in

form

atio

n th

e re

ader

is d

irect

ed –

bet

wee

n br

acke

ts, i

n ita

lic p

rint –

to p

ast i

ssue

s of

the

Oilc

rops

Mon

thly

Pric

e an

d Po

licy

Upd

ate

(MPP

U),

whi

ch c

an b

e re

triev

ed

on-li

ne a

t http

://w

ww.

fao.

org/

econ

omic

/est

/pub

licat

ions

/oilc

rops

-pub

licat

ions

/mon

thly

-pric

e-an

d-po

licy-

upda

te/e

n/.

Oilcrops complex: Policy changes and industry measures - Annual compendium 2017 63

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

I9687EN/1/05.18

ISBN 978-92-5-130606-2

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