After many years, the Ministry of Plantation Industries and Commodities has finally announced that the MSPO, also known as the sustainable palm oil scheme, will finally be mandatory. Even if the MSPO has been around for quite some time, before this particular announcement, its implementation was voluntary.
There are plenty of benefits that come from this. First, having solely sustainable palm oil production is a welcomed sight. Then, you also have the fact that all plantation companies that are certified RSPO will be forced to get the MSPO certification as well. This is very important because it encourages plantations to focus more on sustainability, something that leads to lower costs and a higher quality result.
How can the MSPO tackle the sustainability issues?
There are 7 primary principles that are a part of the MSPO. These are designed to offer a much better set of results and an increased market access for the Palm-based products. The mandatory MSPO adoption can also lead to improved traceability. As for the 7 primary principles, you can find them below:
·Management commitment and responsibility
·Transparency
·Complete compliance with any legal requirements
·Social responsibility, employment conditions, safety and a focus on improved health
·Protecting the biodiversity, natural resources, and the environment
·A complete implementation of the best practices in the industry
·The development of new plantings
The Malaysian government is ready to offer farmers the confidence they need, and making the MSPO mandatory is a great step in this regard. This shows that the contribution of small farmers in the supply chain is very important and it’s also treated with the utmost respect. Since many of the small farmers are focused on sustainability, the MSPO manages to help them achieve even better results extremely fast.
Plus, lots of companies in Europe, for example, are not buying RSPO certified oil. So, by focusing on sustainability and allowing even the smaller farmers to contribute to the supply chains, the MSPO standard will help increase sales extremely fast. Thanks to a better focus on biodiversity and social responsibilities during palm oil productions, the overall results achieved here can be extraordinary. Plus, the primary principles behind the production of sustainable palm oil focus on profit, planet, and people. So, protecting the society and our planet is extremely important. That’s the best way to generate a good profit, and with a good approach, we will be able to achieve all of that.
Making the MSPO mandatory starting with 2018 is a stellar move from the Malaysian government. This will lead to some very good results, and for the long term, the MSPO can come in handy for the small farmers in the country. And since most if not all the palm oil created in the country will be MSPO compliant starting with 2019, it’s safe to say that Malaysia will further solidify its position in the industry. One thing is certain though, focusing on sustainability is extremely important, and this can lead to a much higher profitability for the small farmers, larger palm oil production companies and the country as a whole.