Palm oil is an essential commodity and a versatile raw material that is utilized in both food and non-food industries. Driven by international demands, the last few decades have observed a sudden increase and expansion of palm oil production and cultivation which has in many ways seen the degradation of land, water, and a huge ecological impact. To deal with the adverse effects of palm oil production, the Malaysian Sustainable Palm Oil or MSPO initiative was developed.
What is MSPO?
MSPO was created to handle sustainability issues and challenges in relation to the multi-stakeholders involved in the palm oil industry. The standard defines and describes the sustainability requirements for the production of palm oil throughout all the stages in the supply chain from the sourcing of raw materials until the transportation to the consumer. As such, MSPO identifies sustainability based on the people, the planet and the potential for profit. The MSPO makes it possible for smallholders to establish, improve and maintain their operational practices within a framework that enables the sustainable production of palm oil.
The advantages of the MSPO scheme include:
1. It reduces the risk for farmers as they understand the supply chain and all the threats.
2. It will ensure improved efficiency as it will improve visibility and inventory management of all the suppliers involved.
3. It provides a competitive advantage and gives producers and suppliers access to international markets.
4. The MSPO scheme also addresses the needs of the client and meets their expectations regarding its commitment to products that have been made sustainably with palm oil.
So, what exactly does sustainability mean for the palm oil sector in Malaysia?
Sustainability pays attention to community needs
Because of MSPO nationwide initiatives have been implemented to protect the rights of all employees that work in the palm oil sector. The aim is to assist families and farmers of palm oil to gain their independence which will in return lead to an improved quality of life.
International sustainability goals
The MSPO scheme required the efficient use of energy so when certification is given to many farmers across the globe, greenhouse emissions and other environmental issues should reduce drastically in the future. Sustainability efforts in palm oil also support increased yield which will in turn help to feed the growing planet without worrying about the limited resources.
Profits
Consequently, when the environment and the people are taken care of and are living in a clean environment, then the profits from palm oil sales should start rolling in soon enough.