The world’s largest palm-oil producers and exporters, Malaysia and Indonesia, “have joined hands to establish a council to strengthen cooperation and improve the welfare of smallholders,” says The Star Online, based in Malaysia. Each nation will donate $5 million to finance the initial operations of the Council of Palm Oil Producing Countries. Ministers from the nations, who signed the council charter on the sidelines of the ASEAN summit, said the council would focus on the welfare of small landowners and address issues such as deforestation and bush fires.
Malaysian Commodities Minister Datuk Douglas Uggah Embas said the council would not try to set palm oil prices but rather would try to organize and harmonize stock management in ways that lead to sustainable prices, reports the Associated Press. The Asian palm oil industry is pressured by falling oilseed prices.
“Both ministers also declared the Framework of Principles for Sustainable Palm Oil, called e+POP, which contains nine principles on regulations on sustainable palm oil development,” said The Star. Membership will be offered to other palm-oil producers such as Brazil, Colombia, Thailand, Ghana, and the Philippines.