I’ve posted hyperlinks and quotes from the superb Chain Response Analysis e-newsletter earlier than. Right here’s a number of alternative gems from their put up latest missive, taking a look at a topic not lined that always by anybody: China and palm oil. I’m reproducing quotes from their latest notice, under.

Join their insights at: http://www.chainreactionresearch.com

(China apart, in addition they revealed a actually helpful overview of the place among the greatest FMCG corporations are, publicly on hitting deforestation targets, you may test that out right here. 2020 can be attention-grabbing for these corporations as they set new objectives and focus on progress. See finish of put up for extra on that)

…At present tempo, China’s imports of palm oil are set to be the highest annual price ever in 2019. That is possible one other consequence of the U.S.-China commerce struggle. Because the commerce struggle between Beijing and Washington has affected China’s soy volumes from america, China has appeared for alternate options elsewhere, significantly soy from Brazil. Now, China can also be together with substituting palm oil for soy as a cheaper edible oil, whereas additionally growing its use of palm oil for biofuels as an affordable various to crude oil. China stated in August it’s going to eradicate import tariff quotas on palm oil from Indonesia, paving the best way for extra imports….

…China has to date imported largely refined merchandise, which have been lined by refiner NDPE insurance policies regardless of the dearth of sustainability calls for from Chinese language end-users. If China now begins importing important crude palm oil volumes, that might be a significant component within the leakage market…

…On the Chinese language aspect, corporations within the palm oil provide chain have lagged different markets in becoming a member of certification schemes such because the RSPO or creating zero-deforestation insurance policies. Nonetheless, lately, there was a pointy improve in Chinese language corporations becoming a member of the RSPO together with extra initiatives to construct a “sustainable” palm oil provide chain in China. There at the moment are 117 Chinese language corporations as a part of the RSPO, double 2016 ranges and up from solely a handful in 2011. Key palm oil gamers in China embody AAK, Mars, L’Oreal, COFCO, state-owned China Grain Reserves Company, and Cargill. COFCO, a serious dealer of agricultural commodities and one of the vital seen Chinese language corporations within the comfortable commodity commerce, has been a member of the RSPO since 2012. But, although the corporate has a commodity-specific dedication for soy, it doesn’t have one for palm oil. As CRR has beforehand reported, COFCO has but to place in a zero-deforestation coverage that covers palm oil sourced from Indonesia. Nonetheless, COFCO says it’s forming long-term relationships with suppliers “based mostly on accountable and sustainable enterprise practices” and has stated it plans to transition to “sustainable” palm oil by 2025….

They conclude that:

“Buyers will maintain consideration on future shifts in commerce flows to watch deforestation dangers. International buying and selling dynamics for soy and palm oil are sure to proceed to vary once more based mostly on risky worth dynamics and modifications in commerce coverage, inflicting deforestation dangers to fluctuate frequently for corporations working in comfortable commodity markets.”

Learn the complete put up right here.

In case you have an interest…

This yr’s Sustainable Landscapes and Commodities Discussion board (20^th-21^st November, London) is about to be the flagship assembly place for professionals trying to construct sustainable, resilient agricultural provide chains and create a internet constructive affect.

We’ll welcome 65+ audio system and 350+ attendees representing a cross part of industries and stakeholder teams. Check out a pattern checklist of attendees right here: http://bit.ly/2pHDfHT

Agenda highlights embody:

• C-suite executives at Barry Callebaut, Golden Agri-Assets and Louis Dreyfus Firm focus on the way forward for sourcing sustainable commodities
• 2020 targets and past: Nestlé, Cargill and Greenpeace on what’s been achieved and what’s subsequent for enterprise goals round deforestation
• H&M, Pernod Ricard and ICMM share their efforts to successfully monitor, defend and promote biodiversity all through operations and provide chains
• The best way to deal with deforestation by communities and smallholders with L’Oréal and RSPO
• Mondelēz Worldwide, WWF and Wageningen College on whether or not enterprise ought to transfer from imposing zero-deforestation to incentivising sustainable improvement
• Sustainable land administration: How enterprise can allow higher water administration, deal with the soil disaster, and interact in local weather sensible agriculture with METRO, Olam, Bayer Crop Science, College of Edinburgh, JUST and extra
• How far is sustainability really taking centre stage inside monetary establishments? HSBC, BNP Paribas and Financial institution of America Merrill Lynch share their insights
• Farmers of the longer term: Philip Morris Worldwide, The Nature Conservancy, Fairtrade Basis and Soil Affiliation  focus on how enterprise can make sure the sustained viability of smallholders as a enterprise mannequin
• APRIL, IDH and TFA2020 on how enterprise can scale the panorama method to sustainable commodities

You possibly can view the complete agenda and audio system checklist right here.

To safe a spot on the convention, register on-line or e mail me immediately. E-book by subsequent Friday, October 18^th, to get a £100 low cost in your go.

We strongly encourage delegates to affix as a crew to make sure you don’t miss something throughout the 4 tracks. Please get in contact for particulars on group reductions and be happy to share this with any colleagues.

Thanks to every of our sponsors: APRIL, Gold Agri-Assets, Wageningen College & Analysis, Nestle, Bayer Crop Science, GAA, Authenticate, Cargill, Satelligence and SupplyShift.