- The Indonesian palm community will meet with counterparts in Brussels and Rotterdam for a series of events;
- The Joint Task Force on the EUDR will be key, and Indonesia is seeking to ensure the regulation does not penalise Indonesian farmers.
Indonesian palm oil stakeholders will be in Brussels next week alongside their Malaysian counterparts for a series of key events and meetings.
At the top of the list is the 3rd Sustainable Vegetable Oil Conference which takes place in Rotterdam.
Organised by the Council of Palm Oil Producing Countries (CPOPC) and the Netherlands Oils and Fats Industry (MVO), the event is also supported by the governments of Indonesia, Malaysia as well as the Indonesian Palm Oil Association (GAPKI).
The inaugural SVOC took place in Indonesia in 2022, against the backdrop of Indonesia’s G20 year.
This year’s event will take place against the backdrop of the introduction of the EU Deforestation Regulation (EUDR).
In addition to general sessions on current market dynamics and palm oil sustainability, the event will feature a session on the EUDR.
This will include an update from the European Commission, as well as a broader discussion on how the EUDR will impact smallholders, supply chains and other commodities beyond palm oil – including soybean.
Most eyes will be on the European Commission’s EUDR update. The EUDR has not updated its ‘frequently asked questions’ document since December 2023, and many industry participants are eager to hear more as the implementation deadline approached.
SVOC will take place concurrently with OFI International, the world’s largest vegetable oil conference.
However, the key event during the week will be the meeting of the Ad Hoc Joint Task Force (JTF) on the EUDR. This is the third meeting of the JTF to date. The last meeting of the JTF took place in February of this year. One key push from Indonesia and Malaysia at that meeting was for a postponement of EUDR implementation for smallholders.
Chairman of the Indonesian Palm Oil Association Eddy Martono underlined that Indonesia is seeking strong outcomes from the meeting.
Last week Pak Eddy told media, “The government is fully supporting us to ensure that the implementation of the EUDR does not place an undue burden on us… If implemented, small farmers will be the first to suffer. They may be pushed out of the supply chain.”
This is a significant meeting for Indonesia. Europe represents its third-largest export market for palm oil, with annual volumes reaching 4.2 to 4.3 million tons. Moreover, the EUDR’s reach extends beyond palm oil to other key Indonesian exports such as cocoa, coffee, rubber, and wood products.
As the clock ticks towards the EUDR’s implementation, the September talks in Brussels take on added urgency. The outcome of these negotiations will not only shape the future of the palm oil industry but also set a precedent for how global trade adapts to environmental regulations.