Presented by Prof. Dr. Iskandar Zulkarnaen Siregar, IPB University at Palm oil and Environmental Sustainability: Facing Food, Climate and Energy Crises, on 30 August 2022

2. Wrap-Up

3. Background
▪ Talk Show Session 1 – Palm oil price fluctuations and supply
chains
▪ Talk Show Session 2 – Global food and energy crises and
impacts on the palm oil sustainability roadmap
▪ Talk Show Session 3 – Environment and livelihoods of
people facing global crises

4. Session 1 – Palm oil price fluctuations and supply chains
▪ The price fluctuations are influenced by multi-factors such as i) global production decreases in
vegetable oils, ii) disruption of supply due to conflicts/war, iii) Climate change (e.g. weather
anomaly), iv) Policy changes in the market countries and v) the use of vegetable oil for bio-fuels
▪ Impacts of global palm oil price fluctuations and climate changes: i) rising in the price but now
current cooking oil price is stabilising, ii) decreases on yields (productivity) particularly more on
smallholders (i.e. independent), and iii) developing mitigation and adaptation strategies via
certification instrument (sustainability standards).
▪ Links between the price fluctuations and supply chain as well as the governance: i) Global CPO
trade is not regulated for food and fuels including at the site level, ii) Identified gaps in the
sustainability systems, iii) Identified vulnerable smallholders vs non-ones, iv) Consideration also
on the palm oil labours
▪ Measures: i) Addressing the expected next booming in the production due to yield
improvement, ii) Working at the sub-national level for securing the “good prices” despite over-
supply, and iii) Discussing on the benefit-sharing mechanism for certification (e.g. audit costs)…

5. Session 2 – Global food and energy crises and impacts on
the palm oil sustainability roadmap
▪ There are 4 (four) identified key drivers for the crisis: conflict, harvest failure, poverty
and inequality. Despite the crises or disruption, there are still positive trends
(increases) in the product certification and also the sustainability commitment
▪ Current global supply chain is fragile and the subsequent impacts due to this condition
hits harder on the disadvantage groups
▪ Measures: i) more and more collaboration, ii) Keep meeting the sustainability criteria
including sticking to the standards of sustainability, iii) More dialogues on trade &
market, transparency and traceability including research & innovation, iv) Continuing
the works for the global recognition of the national standards, v) Sharing the costs for
reaching the sustainable palm oil, vi) Eliminating the “bad actors”, vii) extending the
certified markets to alternative ones, and vii) Accelerating ISPO for small holders…

6. Session 3 – Environment and livelihoods of people facing
global crises
▪ More discussion beyond climate issues and deforestation (i.e. land use
change). Linking the plantation to food system through innovation (e.g.
more attention on inter-cropping, biodiversity enrichment in the
plantation etc.)
▪ Smallholder’s livelihood is very vulnerable. Impacts of the crises on the
livelihood: i) water resources↓(household consumption),ii) pest
↑(“hama ulat api”), iii) number of poor households↑.
▪ Measures: i) Increasing resilience, and ii) Doing more capacity building
on GAP, iii) Reconciling the policies and actors (e.g. landscape
approach).…

7. Thank you