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INTERNATIONAL SOCIETY FOR FAT RESEARCH 2016

GLOBAL TRENDS IN OILS & FATS:PATHWAYS TO 202519-21 OCTOBER 2016HOTEL ISTANA, KUALA LUMPURMALAYSIA

OFIC 2016TM

Final Announcement

Malaysian Oil Scientists’ and Technologists’ Association

www.mosta.org.my

Organised By:

International Society forFat Research

Supported by:In Collaboration with:

Official AirlineMedia Partner:Bronze Sponsors:Silver Sponsors:

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I am pleased to invite you to take part in the Oils and Fats International Congress 2016 (OFIC 2016). This is a very special event which includes ISF Oils and Fats Lecture Series, thus emphasising the wide scope of 17 Oils and Fats. The theme of the Congress has been selected as : “Global Trends of Oils and Fats – Pathways to 2025”. The five modules will cover all the 17 Oils and Fats under the following issues / aspects : Economics and Price Outlook, Global Trade Policies and Politics, Technology (Processing, Mechanisation & Robotics), Nutrition and Sustainability. The following speakers will be delivering the ISF Lectures Series:-

Kaufmann Award Memorial Lecture by Prof Yang YueXin

16th Tan Sri Dato Seri B. Bek-Nielsen Foundation Lecture by Dato’ Carl Bek-Nielsen

4th Raja Alias Foundation Lecture by Dr Robert A. Martienssen

3rd Tun Dr Lim Keng Yaik Foundation Lecture by Mr Dorab Mistry

In addition to the above, we expect more speakers including those from University of Cambridge and Massachusetts Institute of Technology. I hope you will agree with me that several important developments have emerged including palm oils being ranked first in term of production and export, role of phytonutrients in health and biomedical science, the structure of oils and fats and their nutritional attributes, genomic research on oil palms, life cycle analysis (LCA) of oils and fats and renewable energy. These are some of the developments which will have socio-economic impacts.

We are looking forward to more than 13 leaders from various national associations of Oils and Fats (members of ISF) and members of AOCS gathering at OFIC 2016 to share their knowledge and expertise for a better world

Best Regards

Academician Emeritus Prof Tan Sri Datuk Dr Augustine S H OngPresident, MOSTAChairman, OFIC 2016 Organising Committee

AN INVITATION

Oils and Fats international Congress series was launched by MOSTA in 1994 concurrently with an exhibition of latest available technology for the oils and fats industry. These events will focus on the major challenges faced by the oils and fats industry for possible solutions. The coverage of these issues is reflected in the synopses of the five modules.

About OFIC 2016

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TUESDAY, 18 OCTOBER 2016

8.00am – 5.00pm - Congress Registration Mahkota II, Hotel Istana Kuala Lumpur

8.00am - Registration for Technical Visits Mahkota II, Hotel Istana Kuala Lumpur

9.00am - Departure for Technical Visits Sime Darby Plantation , Lot 2664 Pulau Carey, 42960 Carey Island

7.00pm - Dinner for Heads of Delegations/Speakers & Captains of Industry

WEDNESDAY, 19 OCTOBER 2016 (DAY 1)

8.00am – 5.00pm - Congress Registration Mahkota II, Hotel Istana Kuala Lumpur

9.00am – 9.15pm - Welcome Address Academician Emeritus Prof. Tan Sri Datuk Dr. Augustine S. H. Ong President, MOSTA

9.15am – 9.30pm - Special Address by ISF Y Bhg Datuk Dr Choo Yuen May President, International Society for Fat Research

KAUFMANN MEMORIAL LECTURE

Chairperson : Y Bhg Datuk Dr Choo Yuen May President, International Society for Fat Research

9.30am – 10.15am - Kaufmann Memorial Lecture 2016 Oil Nutrition and Health Benefits (Plenary Lecture I) Prof Yang Yuexin Chinese Nutrition Society, China

10.15am – 11.15am - Tea Break & Exhibition at Mahkota I & III

MODULE 1 : ECONOMICS & PRICE OUTLOOK

Chairperson : Mr. MR Chandran Council Member, MOSTA

11.15am – 12.00noon The 16th Tan Sri Dato Seri B. Bek-Nielsen Foundation Lecture 2016 Global Trends in Oils & Fats: Pathways to 2025 (Plenary Lecture II) Y Bhg Dato’ Carl Bek-Nielsen Vice Chairman & Chief Executive Director United Plantations Berhad, Malaysia

12.00noon – 12.45pm - 3rd Tun Dr Lim Keng Yaik Foundation Lecture Reflections on Palm Oil’s Journey to the Top (Plenary Lecture III) Mr Dorab Mistry Director Godrej International Limited, United Kingdom

PROGRAMME - OFIC 2016

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12.45pm – 2.15pm - Lunch & Exhibition @ Mahkota I & III

2.15pm – 2.55pm - Changing Paradigm in the Indian Oils & Fats Sector Ms Bhavna Shah Country Representative - India/Sri Lanka Malaysian Palm Oil Council, India

2.55pm – 3.35pm - Future Role of the State in Governing Palm Oil Industry Pak Bayu Krisnamurthi Chief Executive Badan Pengelola Dana Perkubunan (BPDP) Sawit, Indonesian Estate Crop Fund

3.35pm – 4.15pm - Towards a Sustainable Palm Oil Industry: Managing Market Uncertainties Mr Sandeep Singh Vice President, Global Trading & Marketing Sime Darby Berhad, Malaysia

4.15pm – 5.00pm - Panel Discussion

5.15pm – 7.15pm - Evening Forum – “What are the Key Long Term Structural Trends that will Drive the Oils & Fats Complex”

Moderator: Mr. MR Chandran Council Member, MOSTA

Panel Members: Y Bhg Datuk Dr Choo Yuen May President, International Society for Fat Research

Dr Kalyana Sundram Deputy Chief Executive Officer / Director Science & Environment Malaysian Palm Oil Council, Malaysia

Pak Bayu Krishnamurthi Chief Excutive, BPDP Sawit, Indonesia

Y Bhg Dato’ Carl Bek-Nielsen Vice Chairman & Chief Executive Officer, United Plantations Berhad, Malaysia

Mr Dorab Mistry OBE Director, Godrej International Ltd, United Kingdom

Mr Sandeep Singh Vice President, Global Trading & Marketing, Sime Darby Berhad

THURSDAY, 20 OCTOBER 2016 (DAY 2)

9.00am – 9.10am - Welcome Address Academician Emeritus Prof. Tan Sri Datuk Dr. Augustine S. H. Ong President, MOSTA

9.10am – 9.30am - Opening Address by Minister of Plantation Industries and Commodities, Malaysia

9.30am – 10.00am - Official Opening of Exhibition & Tea Break @ Mahkota I & III

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10.00am – 10.45am 3rd Raja Alias Foundation Lecture Reading Palms to Avoid Bad Karma : the Genome and the Epigenome of Oil Palm (Plenary Lecture IV) Prof Dr Robert A. Martienssen Cold Spring Harbor Laboratory & Howard Hughes Medical Institute

MODULE 2 : GLObAL TRADE POLICy AND POLITICS

Chairperson : Ms Khor Yu Leng Head Research for Southeast Asia LMC International

10.45am – 11.30am - Trade Challenges & Opportunities for Malaysian Palm Oil Speaker to be advised

11.30am – 12.00pm - “TPPA’s Non-Tariff Provisions – Implementation, Compliance and Dispute Resolution” Ms Sanya Reid Smith, Legal Advisor & Senior Researcher Third World Network

12.00pm – 12.30pm - Biodiesel Trade Policy Shifts and Economies of Anti-Dumping and Tariff Moves and Producer Mandates Dr Joe Feyertag, Economist, LMC International, United Kingdom

12.30pm – 2.00pm - Lunch & Viewing of Exhibition at Mahkota III & I

2.00pm – 2.30pm - “Vegetable Fats in the Dairy Industry – the Future or a Passing Fad?” Mr James Caffyn Consultant Girafood Strategy & Consultants, United Kingdom

2.30pm – 3.15pm - Panel Discussion

MODULE 3 : TEChNOLOGy

Chairpersons : Dr Goh Swee Hock Council Member, MOSTA

: Dr Harikrishna Kulaveerasingam Head In-charge of Research & Development Sime Darby Plantations Sdn Bhd, Malaysia

3.15pm – 4.00pm - Impact on the use of Sensors in Plantation Agriculture Prof Dr Rajeev Ram, Principal Investigator MIT USA

4.00pm – 4.30pm - Innovation, the Path to Creating Value Mr Harikrishnan Nair, Group Chief Strategist & Innovative Officer Sime Darby Berhad, Malaysia

4.30pm – 5.00pm - The Big and the Small … what Metabolites can tell us about Oil Palm Yield, Dr David Ross Appleton Head In-charge of Bio-technology & Bleeding Sime Darby Technology Centre, Malaysia

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5.00pm – 5.30pm - Vegetable Oil Processing : from Challenge to Opportunity to Solution Dr Marc Kellens, Group Technical Director Desmet Ballestra Group, Belgium

5.30pm –6.00pm - Emerging Processing Technologies for Adding Value to Edible Oil Industries Dr Mary Ann Augustin & Mr Pablo Juliano Group Leader & Research Team Leader CSIRO Food & Nutrition, Australia

6.00pm – 6.45pm - Panel Discussion & Tea Break @ Mahkota I & III

7.30pm – 11.00pm - Congress Dinner at Istana Hotel

FRIDAY, 21 OCTOBER 2016 (DAY 3)

MODULE 4 : NUTRITION

Chairpersons : Associate Prof Tony Ng International Medical University

: Dr Kanga Rani Selvaduray Malaysian Palm Oil Board

9.00am – 9.30am - Saturated Fatty acids and cardiometabolic risk – a fresh look at the available evidence

Dr Rajiv Chowdhury University of Cambridge School of Clinical Medicine

9.30am – 10.00am - Effect of Positional Distribution of Unsaturated Fatty Acids on the Triglyceride Backbone on Fat Deposition Dr Darren Gouk Shiou Wah Research Officer, Nutrition Unit, Malaysian Palm Oil Board (MPOB), Malaysia

10.00am – 10.30am - Oxidised Fats and Their Effects on Health Dr Miskandar Shari, Head of Protein & Food Technology Unit Malaysian Palm Oil Board (MPOB), Malaysia

10.30am – 11.00am - Tea Break & Exhibition @ Mahkota I & III

11.00am – 11.30am - Vitamin A Intervention Programme for School Children in China Using Red Palm Oil

Prof Sun Gui Ju, Director Southeast University, China

11.30am – 12.00pm - Tocotrienols and Health : A Review Prof Yuen Kah Hay, Universiti Sains Malaysia

12.00pm – 12.45pm - Panel Discussion

12.45pm – 2.30pm - Lunch at Mahkota III

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OFIC 2016 is designed for those involved in the oils and fats industry including the following :

● Industry Captains and CEOs ● Planters and Mill Engineers ● Refiners and Processors of Consumer Goods ● Biofuel Producers ● Quality Assurance Personnel and Process Engineers ● Academics and R & D Personnel

● Scientists and Technologists ● Traders, Analysts, Investors and Financiers ● Economists and Policy Makers ● Environmental and Social NGOs ● Government Agencies

WHO SHOULD ATTEND OFIC 2016?

2.30pm – 3.00pm - Latest Development on Fractionation Technology Dr Calliauw Desmet Ballestra Group, Belgium

MODULE 5 : SUSTAINAbILITy

Chairperson : Dr Yew Foong Kheong Malaysian Palm Oil Council (MPOC), Malaysia

3.00pm – 3.30pm - Maintaining Palm Oil Industry’s Viability Through Managing Its Sustainability Concerns

Y Bhg Tan Sri Datuk Dr Yusof Basiron Chief Executive Officer Malaysian Palm Oil Council (MPOC), Malaysia

3.30pm – 4.00pm - Findings of the High Carbon Stock Study and the Implication on the Palm Oil Industry

Mr Mark Wong Joon Loi Senior Vice President Sime Darby Berhad, Malaysia

4.00pm – 4.30pm - Water Footprint of Oil Palm Cultivation Dr Vijaya Subramaniam Principal Research Officer Malaysian Palm Oil Board (MPOB), Malaysia

4.30pm – 5.00pm - Available Technologies to Increase Palm Oil Productivity and Yield from Existing Land Area Dr Xaviar Arulandoo Director of Research United Plantations Berhad, Malaysia

5.00pm – 5.45pm - Panel Discussion

5.45pm – 6.00pm - Closing Address Academician Emeritus Prof. Tan Sri Datuk Dr. Augustine S.H. Ong President, MOSTA

6.00pm - Tea Break @ Mahkota III

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CALL FOR POSTER PAPERS

The 2016 Oils and Fats International Congress (OFIC) will include a poster session to provide a platform for sharing of the latest research findings related to oils and fats in line with the theme of Global Trends in Oils & Fats - Pathways to 2025

The poster session enables presenters to share their research findings and innovations in order to obtain feedback through interaction with international audience.

The Organising Committee invites scientists, researchers, undergraduate and post graduate students to submit their abstract in English of not less than 400 words with the following format:

● Title of paper ● Author(s), Affiliation(s), Address, Country ● Email address and contact information of corresponding author ● Extended Abstract ● References

Abstract of the posters submitted to mosta.secretariat@gmail.com and chch-uah@um.edu.my will be reviewed by the Organising Committee and notification of acceptance will be sent to corresponding author. Template of the abstract and poster can be obtained from the OFIC 2016 webpage at http://www.mosta.org.my.

Best Poster AwardA best poster award will be given to poster paper that shows high scientific quality and bring forward new ideas, concepts and innovations in addressing issues and challenges in the oils and fats industry.

Important dates ● Abstract submission deadline : 31 August 2016 ● Acceptance notification : 15 September 2016 ● Poster setting up : 18 October 2016

GUIDELINES FOR

POSTER PAPERS

1. The poster should be of A1 (59.4 cm x 84.1 cm) in size.

2. The poster should be clearly read at distance around 1 meter.

3. At the top of the poster, indicate the title and names of authors and organisations.

4. Include the following items on our display; introduction, objectives or goals of the study, methods, key results, discussion and conclusion, any acknowledgement of financial support for your research.

5. Graphic illustration such as figures, concise tables and photographs considered essential by the authors could be included.

6. Use tack-and-stick reusable adhesive, mounting tabs, or tape to attach your materials to the board.

7. Authors are required to be present at their poster board during the scheduled times to respond to questions.

8. Each poster will be displayed for the whole three days of the program. Poster viewing and informal discussions will take place during morning and afternoon breaks, as well as the lunch break.

Rates :

System Shell Scheme Booth of 3M x 3M (Mahkota 1) only RM 10,000.00

System Shell Scheme Booth of 3M x 3M (Corner site) only RM 12,000.00

Special rate apply for MOSTA members.

Shell Scheme Price includes : Space with fittings including side and rear panels, lighting, power point, name board, table and two chairs.

For further information, please contact :

OFIC 2016 Secretariat c/o MOSTA

C-3A-10, 4th Floor, Block C,Damansara Intan, 47400 Petaling Jaya, Selangor, Malaysia.Tel: +603-7118 2062 / 2064Fax: +603-7118 2063E-mail: mosta.secretariat@gmail.comWebsite: http://www.mosta.org.my

MOSTA EXHIBITION & Conference 201619-21 October 2016

Mahkota I, Istana Hotel

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Economics & Price Outlook

In a globalised world, in which many economies are increasingly linked as a result of the removal of barriers to trade, investment and finance, problems in one country will inevitably affect others. The impact of the global crisis depends on the degree to which the countries are integrated into the global economy. So it is important to assess how exactly the shockwaves from the current crisis have travelled and what this means to the producers of oils and fats in the near and long term.

The current lower prices for crude oil and other strategic agricultural commodities like grains and oil seeds have intensified the slowdown in developing and emerging economies, many of which depend heavily on commodity export.

Population growth, rising incomes and globalisation of trade seem to provide ample opportunities for the oils and fats industry, but unfortunately challenges remain to destine palm oil as a low-price third world product.

Most of the challenges, though not new, are seemingly intractable:

● What is the future outlook for the oils and fats sector, now that commodities are experiencing the downturn of the cycle?

● As primary commodities only provide basic value, why has it been difficult to achieve real value-addition in downstream activities in palm oil? Should merger and acquisitions of traditional manufacturing concerns or new enterprises be emphasized for the future?

● The playing field for oils and fats has never been level as palm oil remains at a sizeable discount to soft oils. Can producing countries cooperate to institute their export tax regime and other policies so as to ascertain optimal prices for their commodities?

● With petroleum prices falling, the disturbing competition has been revived for synthetic oleochemicals. What would be the best strategies for natural oleochemical producers?

● Labour issues and the challenges confronting mechanisation have remained; therefore do these portend a supply constraint and higher prices in the future?

● It is always the traders with their algorithms and big computers that benefit from commodities including oils and fats. How can artificial intelligence and big data help the producers?

This module will assess the current state and future direction of the global oils and fats industry in the light of the present volatile markets and the environmental and social sustainability concerns.

MODULE

01Chairperson:

Mr. MR ChandranCouncil Member, MOSTA

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Title 3rd Tun Dr Lim Keng Yiaik Foundation Lecture 2016Reflections on Palm Oil’s Journey to the Top (Plenary Lecture III)

Speaker Mr Dorab MistryDirector, Godrej International Limited, United Kingdom

The Late Tun LKY will be remembered most for his titanic contribution to the development of the Malaysian Palm Oil industry. During his tenure as Primary Industries Minister, from 1986 to 2004 he was engaged in promoting and pushing Palm Oil to the top of the world’s vegetable oil range. His dynamic and at times domineering personality left its imprint on everything he did. It is an under-statement to say that he was passionate about Palm Oil. This paper will trace his unique contribution as palm oil came to be the most important traded vegetable oil in the world. Today Palm Oil growers, millers, processors and end users enjoy prosperous times and should look back with gratitude over that long journey to the top.

Title Towards a Sustainable Palm Oil Industry: Managing Market Uncertainties

Speaker Mr Sandeep SinghVice President, Global Trading & Marketing, Sime Darby Berhad, Malaysia

Malaysia and Indonesia are the two largest producers of palm oil and account for over 85 % of the global production. Various factors are driving and defining the operating landscape and we now see newer challenges emerging due to increased price volatility and sustainability challenges linked to deforestation, biodiversity loss, GHG emission and human rights issues. In addition, the industry is also confronted with geopolitical and macro economic factors including currency fluctuations, and this necessitates changes to corporate strategies to cope with the new realities. One major initiative is the multi-stakeholder RSPO certification platform and the efforts taken by the planation companies to address their sustainability and carbon footprints throughout the entire supply chain. Other notable challenges are labor shortages, mechanization, climate change, crop forecasting, tax structures and biodiesel mandates.Palm oil being an major contributor to the socio-economic development of the producing countries has been able to weather the adversities and has emerged as the most versatile and largest traded edible oil among the 17 oils & fats. What is now required is a focused commitment to increasing productivity, better market collaboration among producing nations and strengthening compliance regulations at all levels to ensure the long term supply of this versatile food commodity is not jeopardized in any manner.

Title Changing Paradigm in the Indian Oils & Fats Sector

Speaker Bhavna ShahCountry Representative - India/Sri Lanka, Malaysian Palm Oil Council, India

The Indian economy is driven by many factors, some of them of not much economic significance at times. In the politically charged environment of India, political considerations often far outweigh economic factors. One factor that is of common interest to both economists and politicians is inflation. Governments have come close to being toppled when prices of essentials such as onions have gone through the roof. In this regard, 2015 was a boon for both economists and politicians. Inflation fell to single digits and at times even negative. While the GOI and RBI both took credit for inflation coming down, fingers were pointed at everyone when the monsoons were not good and kharif pulses crop was sub-optimal. After all if there are lower stocks in the country, prices have to move up. As usual the imports came in late. Global factors such as low commodity and fuel prices came to the consumer’s rescue at a time when the crops did not show much promise. Vegoils imports rose by 24%. This was possible only due to low international prices. With vegoils imports creating another record, one shudders to think what would have been the plight of the consumers and inflation had international prices not been at the low end of the spectrum. At the same time, the Indian industry is diversifying the usage of palm oil into various fields, principal amongst them being the Oleochemicals and FMCG sectors.

From being a small portion of the oils consumed in the country, Palm Oil has become the single largest vegetable oil consumed in the country. The shift in consumption, both domestic as well as industrial, bodes well for imports but what about the food self-sufficiency objectives of the country?

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Global Trade Policy and Politics

MODULE

02

Ms Khor Yu LengLMC International

While most food policy is initiated domestically, there are broad international ramifications. Globally, protectionist trade policies, international trade agreements, political flux and development aid are key influences on food policy. While there have been positive for palm oil demand including anti-transfats and the rise of biofuels there are ever shifting winds of change with food labelling concerns and voluntary policies for strong carbon thresholds (to counter deforestation) and against peat land replanting. There are political aspects to the production, inspection, regulation, distribution and consumption of palm oil; which may also be influenced by cultural, ethical, health and environmental disputes concerning appropriate farming, agricultural, processing and retailing methods and regulations. The last few decades have seen the growing power of transnational corporations. Broadly, food manufacturing and processing has become a heavily concentrated industry – a small number of players are responsible for a large percentage of the supply chain. More recently, the palm oil sector has become strongly engaged with the rapid rise of the transnational NGO movement led by WWF and Greenpeace.

Title Reading Palms to Avoid Bad Karma : the Genome and the Epigenome of Oil Palm(Plenary Lecture IV)

Speaker Prof Dr Robert A. MartienssenCold Spring Harbor Laboratory & Howard Hughes Medical Institute

We recently reported 1.535 Gb of assembled sequence and transcriptome data from the African oil palm Elaeis guineensis, and the interfertile S. American oil palm Elaeis oleifera, which diverged in the new world. The oil palm sequence enabled the discovery of the SHELL gene responsible for increased yields in tenera hybrids through single gene heterosis. The genome sequence also enabled epigenome wide association studies, which were used to find KARMA, a transposon inserted into the MANTLED gene, whose methylation protects clonal planting materials from floral abnormalities. These discoveries, and more to come, are already helping to achieve sustainability for the most important oil crop worldwide.

Title “TPPA’s Non-Tariff Provisions – Implementation, Compliance and Dispute Resolution”

Speaker Ms Sanya Reid SmithLegal Advisor & Senior Researcher, Third World Network

This presentation will look at the implications of various Trans-Pacific Partnership Agreement (TPPA) chapters for the palm oil sector: from plantations to processed products. It will examine some of the TPPA’s impacts on palm oil producers in TPPA countries and those outside it.’

Chairperson:

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Title Biodiesel Trade Policy Shifts and Economies of Anti-Dumping and Tariff Moves and Producer Mandates

Speaker Dr Joe FeyertagLMC International, United Kingdom

Biodiesel’s role in palm oil expansion – anti-dumping, mandates and moratoriumsSince 2008, the mandated production of biodiesel from vegetable oil has created an inextricable link between palm oil and crude oil prices. At the same time, palm oil supply has continued its relentless drive as the world’s dominant vegetable oil leading to concerns over the sustainability of its production.This presentation will investigate the past, present and future role of biodiesel in the expansion of palm oil. In answering this question, the lecture will cover biodiesel policy outlook at key origins and destinations, including producer mandates, anti-dumping measures and the ongoing evolution of biodiesel trade policy. In particular, the presentation will concentrate on the examples of Indonesian palm-based biodiesel and Argentine biodiesel from soybean oil. In the context of Argentina’s recent WTO challenge against the EU’s anti-dumping measures, the lecture will assess how Argentina’s potential reentry to the EU biodiesel market will affect Southeast Asia’s market share. Other topics include the impact of the decline in Argentina’s export tax rate on biodiesel, the ongoing attractiveness of the US market due to the Blender’s Credit and the potential reinstatement of a biofuel tax in the EU.The EU and US markets have also dictated biodiesel’s policy on sustainability. Concerns over the environmental impact of palm oil have led to calls for strict regulation and even a stop to the expansion of palm oil areas in Southeast Asia and elsewhere. However, future constraints on palm oil growth due to environmental constraints will inevitably lead to area growth elsewhere. The presentation will therefore also cover the impact that a moratorium on palm oil expansion will have on the production of competing vegetable oils for biodiesel elsewhere in the world. Slowing down or halting the expansion of high-yielding palm oil will inevitably lead to the need for millions of additional hectares in areas such as the Amazon.

Title “Vegetable Fats in the Dairy Industry – the Future or a Passing Fad?”

Speaker Mr James CaffynConsultant, Girafood Strategy & Consultants, United Kingdom

“The global dairy markets have undergone significant change over the last decade, with industry dynamics changing in both developed and emerging markets. With large dairy operators increasingly targeting non-traditional dairy markets and consumers with low disposable incomes, price has become a key success factor. This has driven growth in substitution, the process of extracting the more expensive dairy fats from products and replacing them with cheaper vegetable oil, often palm oil.A number of such products have been developed, with cheaper, Fat-Filled Milk Powder (FFMP) a prime example. This provides a cheaper product for consumers, primarily targeting the dynamic Sub-Saharan African, SE Asian and Middle Eastern markets, which together consumed over 1.5 million tons in 2014. Major producers include the EU, the US and several SE Asian countries, with vegetable oils largely sourced from Asian and, to a lesser extent, African markets. This growth in demand has provided vegetable fat producers with a lucrative new channel to supply. The rapid rise in dairy commodity prices, notably Whole Milk Powder (WMP), prior to 2014 was an important element in the development of FFMP, with the significant price difference between dairy and vegetable fats driving rapid growth in demand. Following the fall in dairy prices since early-2014, the economic advantage of FFMP compared to WMP has become less evident. However, the demand for FFMP has not decreased as much as perhaps would have been expected. A number of technical product characteristics have ensured that, in some markets at least, FFMP demand has been insulated. Russia has also developed as an important market for fats substitution in dairy products, with rapid expansion in vegetable oil imports following the imposition of the trade embargo in 2014 and the subsequent dairy product shortages. Fat substitution has largely taken place in cheese, with oils, largely imported from SE Asia, used to replace dairy fats; palm oil imports increased from 660kt in 2012 to 840kt in 2015. Since Russian milk production remains obstinately stagnant, there is a dilemma between government policy to limit such often undeclared substitution and the needs of consumers and dairies for low-cost supply. How this plays out will decide the future attractiveness of this market as an export destination for SE Asian vegetable oil exporters.”

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Technology

MODULE

03Chairpersons:

Dr Harikrishna KulaveerasingamHead In-charge of Research & DevelopmentSime Darby Plantations Sdn Bhd, Malaysia

Dr Goh Swee HockCouncil Member, MOSTA

The palm oil industry contributes significantly to employment and revenues of Malaysia and Indonesia and palm oils compete globally with other oil crops, many of which are cultivated with government subsidies. The recent economic downturn has put pressure on prices of all oil commodities and additionally greater attention is needed to address sustainability and environmental issues. These will be covered in this module emphasizing on advances made in various sectors – genomics, epigenomics, oil palm breeding, drones/sensors in plantation management, mechanization, processing advances for improved oil and phytonutrient recovery/quality, and the accompanying advances in analytical and detection techniques. These will ensure future oil palm productivity and sustainability, increasingly demanded by the growing global population and affluence.

Low prices will provide the incentive to replant old trees with better breeding materials which can double yields or additionally provide useful traits for plantations of tomorrow. With the publication of the oil palm genome sequence in 2013, the industry has a reference to conduct genetic diversity and discovery projects on their breeding populations. Plant breeding exploits variation in populations that are related to yield traits. Simple markers related to fruit form have been identified and pave the way to reduce costs associated with breeding trials. Genetic analysis such as linkage mapping and genome wide association analysis (GWAS) can be deployed on breeding populations in conjunction with phenotypic data to identify markers that are associated with more complex yield traits. New genetic selection technology such as genomic selection can be applied to make relevant crosses and predict their yield improvement. There is potential by utilizing such approaches to identify yield gaps to palm performance and to breed towards an ideal ideotypic palm. To fully utilize these genomic tools, rapid and efficient phenotyping is required. Current phenotyping methodologies are laborious and time consuming while the utilization of new camera based systems provide the means to identify potentially surrogate phenotypes for selection. These potentially can be linked to drone technology to provide an estate-wide analysis of phenotypes that have utility in estate management as well. With the recent breakthrough in identifying KARMA as the causal gene for mantling in tissue cultures by MPOB, early culling of defective plantlets will ensure success of large-scale clonal palms in future plantations. These new epigenetic tools in conjunction with genomic analysis could also be deployed to understand the impact of biotic and abiotic stresses on palms and facilitate closing of the gap between genetic potential and field performance. The readiness and utility of these technology platforms will be discussed

The application of drones combined with sensors and automated computing devices have simplified the management of large estates. Greater sophistication in the state of the art and science will be exhorted by the experts.

Upstream problems of harvesting and fruit transportation continue to receive attention as new innovations are being introduced. The interplay of the utilization of machines and tools versus man will come to an economic balance depending on the state of the present available technology.

Advances in processing technology come from various facets – in milling improvements in oil extraction and oil quality, in refining improvement of quality with lower side products and innovations to more downstream derivative products. With the recent FDA action against trans fats, palm oil has come into favour and processing and product formulations will need new innovations and with these come more and better value addition. The technology of hydrocarbon biofuels and aviation biofuels is of interest even as low petroleum prices has had a negative impact and the state of bioenergy will be reviewed.

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Title Innovation, the Path to Creating Value

Speaker Mr Harikrishnan NairGroup Chief Strategist & Innovative Officer , Sime Darby Berhad, Malaysia

The oils and fats industry has seen various challenges in the form of volatile commodities prices, unpredictable weather, changing regulatory environment and tight labour markets. These external factors, although important, cannot be controlled by anyone and are therefore not levers that ultimately determine the capability of companies to deliver value.

On the other hand, innovation focuses on things that can be executed by companies. Innovative companies have a pipeline of projects through active ideation that are in line with their vision and mission. Value is created when companies prioritise high potential projects and allocate resources accordingly to execute them. By iterating on this process, companies stay ahead of the curve by driving organic growth, increasing productivity and expanding into untapped markets. They are able to deliver sustainable value to all stakeholders because they continuously disrupt themselves before they are disrupted by other parties.

Innovation is not limited to technological advancements and includes other areas such as business models, operating processes and customer delivery model. As such, depending on the type of innovation and project, various models (i.e. licensing, joint ventures, co-development, M&A) can be employed to meet innovation goals.

Title Impact on the use of Sensors in Plantation Agriculture

Speaker Prof Dr Rajeev RamMIT USA

Raman Optical Sensing for Precision Agriculture and Biomanufacturing: Optical techniques are attractive because of their ability to quantify and characterize analytes without requiring direct contact – thereby preserving sterility for food processing, without reagent consumption – dramatically reducing materials and labor cost, and have broad applicability – with little need to modify an instrument for quantification of a specific molecule. These favorable attributes of optical sensors also lend themselves to integration within portable (handheld) or remote sensing systems. The most widely used optical sensors include absorption sensors, fluorescence sensors, infrared imaging sensors, and vibrational spectroscopies. Vibrational spectroscopies, such as Raman and mid-infrared, are especially attractive as they can provide descriptive “fingerprint” information for the molecules measured. Here, we explore photonics for Raman spectroscopy of plants and fruits as well as for monitoring industrial food production.

Title The Big and the Small … what Metabolites can tell us about Oil Palm Yield

Speaker Dr David Ross AppletonHead In-charge of Bio-technology & Bleeding, Sime Darby Technology Centre, Malaysia

In the face of adverse global challenges, there is a great need for technological improvements to enable the sustainable and cost effect production of high-quality, safe and affordable food and fuel. Dramatic improvements in DNA sequencing technology have facilitated the development of new genetic approaches for crop improvement. Research into the identification of genetic markers for yield and other traits in Oil Palm palm has attracted significant effort in recent years and is now reaching maturity. However, associations between yield and genetic markers can be complicated by epistasis, environmental effects, or not hold true across pedigrees. Biochemical “omics” technologies can provide a complementary approach to identify important gene regions and variants for traits such as oil yield - bridging the gap between genome sequence information and traits. These small molecules and minor components of plant cells can often reflect large-scale biological processes that ultimately lead to crop yield. In many cases the biochemical information obtained provides insights into the regulation of key biological processes involved in fruit lipid biosynthesis and photosynthesis. Key results from genetic marker testing and biochemical studies along with their commercial use in Sime Darby will be presented.

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Title Vegetable Oil Processing : from Challenge to Opportunity to Solution

Speaker Dr Marc KellensGroup Technical Director, Desmet Ballestra Group, Belgium

The vegetable oils and fats processing industry is facing today new challenges as scientific studies, together with improved analytical methods show the presence of more and more unwanted minorcomponents in edible oils, 3-MPCD and glycidylesters being the today’s hot topic.On the other side, more and more evidence is presented to preserve as much as possible the nutritional and nutraceuticals value of the natural ingredients present in various oils, like essential fatty acids (fish oil) , vitamins (tocopherols in soybean oil and tocotrienols in palm oil), sterols (canola oil), oryzanols (ricebran oil) and other health promoting minorcomponents.New standards are set or are in the make to ensure more healthy refined oils and hence oil processors are driven to adapt their processing lines to fulfil the future oil quality standards.With an increasing production and hence demand of palm oil and soybean oil, it is logic that many developments are driven by finding more efficient solutions to improve the organoleptic and nutritional quality of these distinctly different oils, while maintaining the processing cost reasonable. For the technology suppliers it is an ongoing challenge to come up with smart but simple technological solutions to fulfil both processor and consumer needs and desires.Furthermore increasing environmental concern and legislation push plant operators to reduce emission, waste and effluent as they come at a cost. A lot of attention is been given to reduce or add value to the typical side streams of a refinery, be it soapstock, gums, spent bleaching earth, waxes or deodorizer distillates.New smart technologies like hydrodynamic nanocavitation, low pressure ice condensing and the development of new functional enzymes, are affecting the ways oils are processed from crude to fully refined stage. Also the range of available absorbents, additives and chemicals for specific duties, is extending, making it sometimes very difficult for a processer to choose the right route for the proper feedstock to achieve the desired endproduct.The increasing accuracy of oil analytical methods reveals more and more information on wanted and unwanted minor components in the oil, and hence more concern is raised about their impact on health. Whereas soybean oil was targeted in the mid 90’s for its high trans-fatty acid content due to hydrogenation and high temperature deodorization, today palm oil is under investigation because of its 3 MCPD and glycidyl ester content. But also here technology providers and oil refiners are coming up with smart solutions to prevent or eliminate such unwanted components.In oil modification, the trend is to limit or even abandon when possible chemical processes like nickel driven hydrogenation and alkaline interesterification. Instead physical processes as dry fractionation and enzymatic processes like enzyme assisted interesterification become more and more the standard in oil modification. On top, they operate more and more continuous enabling a better control of both process and end product.

What to expect in the future? The oils and fats processing industry will continue to be challenged and come up with solutions. The technology supplier’s task is to turn problems into opportunities by developing better processes, more efficient and more sustainable technologies. Creativity and imagination are key to innovation, but that also requires a good dose of passion and persistence. A never-ending challenge for everyone involved in this fascinating industry.

Title Emerging Processing Technologies for Adding Value to Edible Oil Industries

Speaker Dr Mary Ann Augustin & Mr Pablo JulianoGroup Leader & Research Team Leader, CSIRO Food & Nutrition, Australia

The edible oil industry is in a good position to innovate and contribute to addressing a number of the 17 UN world development goals announced in 2015. Adoption of emerging technologies (e.g. ultrasound, pulsed electric field, advanced separation technologies, microwave) and innovative use of conventional processing technologies (e.g. drying, extrusion) by edible oil industries has the potential to increase the value across the edible oil supply chain. We will review the benefits of emerging technologies processing technologies for (i) improving oil yield in milling operations for oil crops such as palm oil, coconut oil and olive oil, (ii) increasing the extraction of valuable phytochemicals from various side streams of milling operations and (iii) assisting the delignification of palm husks for production of bio-based products for the circular bio-economy. We will discuss how underutilised side streams from oil fruit (e.g. pomace) and oil seed processing (e.g. defatted meal) may, with appropriate formulation and judicious application of conventional and emerging technologies, be applied to add value to underutilised biomass that is currently either put out to the land or used as animal feed, by recovery of edible portions for conversion into products of high nutritional value. This is especially important for food security in a world of depleting resources where the global challenge of feeding a world population of 9 billion by 2050, reducing food loss and waste and reducing emissions are high on national and international agendas. Transdisciplinary research teams, each bringing their own deep discipline knowledge, with a shared vision and focus on aspirational science, business and ethical goals, will no doubt be needed to bring new technologies and new products into the market from farm to the consumer.

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Nutrition

MODULE

04Chairpersons:

Dr Kanga Rani SelvadurayMalaysian Palm Oil Board

Associate Prof Tony NgInternational Medical

University

Title Saturated Fatty acids and cardiometabolic risk – a fresh look at the available evidence

Speaker Dr Rajiv ChowdhuryUniversity of Cambridge School of Clinical Medicine

ABSTRACT Current dietary recommendations encourage reducing the intake of total saturated fatty acids (SFAs) to prevent cardiometabolic diseases; however, recent findings have questioned the role of total SFAs. Several recent systematic reviews and meta-analyses, based on prospective observational studies that examined dietary total SFA intake in relationship with subsequent risk of cardiometabolic outcomes (i.e. coronary heart disease, stroke and type-2 diabetes), found no significant overall association. However, in the observational studies of fatty acid biomarkers, where individual SFA subtypes in blood phospholipids were measured, there seems to be a substantial heterogeneity in the risk associations within the total SFA family. For example, in these biomarker studies, specific odd-chain SFAs appear to have an inverse association with cardiometabolic risk, whereas by contrast, even-chain SFAs are associated positively. Additionally, available randomised secondary prevention trials (where total SFA consumption was replaced with omega-6 polyunsaturated fatty acid intake) are generally small, insufficiently prolonged, vary widely in quality and rigor, and report weak inverse or no significant effects on clinical cardiometabolic outcomes. Furthermore, in metabolic ward studies with intermediate outcomes, in overall, supplementing with diet high in SFA content reduced circulating low-density lipoprotein cholesterol concentration importantly, however, also tended to increase circulating high-density lipoprotein cholesterol, triglycerides and lipoprotein(a) levels, and had no significant effect on insulin resistance. In summary, the value of broad grouping of nutrients such as total SFA and their effects on intermediate factors or clinical outcomes may be limited owing to the potential diversity of specific SFA subtypes in terms of their wide-ranging food sources and discrepant clinical consequences. Further research, therefore, is required to reliably clarify: (1) the roles of individual SFA subtypes, in isolation and in combination, on cardiometabolic risk, particularly in free-living general populations; and (2) potential cardiopreventive or cardiopromotive effects of their principal food sources.

Without dietary fats, life would certainly be dull and tasteless. Yes, these major food components with a glycerol backbone and 3 fatty acid sidechains impart organoleptic properties and texture to foods which make every meal an enjoyable experience. Since these organic molecules play such an important part of our lives, it is important that we have updated and correct information about their effects on human health.

This Nutrition Module brings together both great and bright minds from around the globe to focus on the latest concerns and developments in the area of dietary fats and human health. Recent research findings shall be presented and reviewed, which would make this Nutrition Module a great learning and sharing experience. Traditional perceptions on the health impact of fat types shall be reexamined in the face of new evidence and misperceptions necessarily corrected.

This is a must attend nutrition session for academics, researchers, ministry of health policy makers and developers of national dietary guidelines, the food industry, and postgraduate students.

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Title Effect of Positional Distribution of Saturated Fatty Acids on the Triacylglycerol Backbone on Fat Deposition in C57BL/6 Mice Model

Speaker Dr Darren Gouk Shiou WahResearch Officer, Nutrition Unit, Malaysian Palm Oil Board (MPOB), Malaysia

Abstract: Concerted efforts have been made to establish the relationship between obesity and lipid intake. However, there is no consistent inference that can be drawn from the relationship between triacylgylcerols and obesity as most researchers focused mainly on establishing the correlation based on the total saturated fatty acids (SFA), total unsaturated, monounsaturated fatty acids, n-6 and n-3 PUFA contents of edible oils. Few considerations were given to the effect of different rates of fat absorption due to the different positional attachment of fatty acids in the triacylglycerols. In fact, fatty acids at different sn-position might not be subjected to the same rate of absorption. Prior literature also reveals that long chain SFA may suffer delayed absorption by virtue of the formation of calcium or magnesium soaps.

Several recent studies discussed on the effect of positional distribution of long chain SFA in triacylglycerols, especially at sn-1, 3 positions, on fat deposition using C57BL/6 mice model. A significant lower fat deposition is found if the long-chain saturated fatty acids are located at the sn-1,3 positions of triacylglycrols in edible oils. Palm olein is found to exert significantly lower fat accretion compared with other unsaturated oils. In this study, we incorporate palmitic acids and stearic acids into sn-1,3 positions of triacylglycerols in soybean oils using 1,3-specific enzymatic interesterification. Subsequently, the newly synthesized structured lipids and soybean oils are employed in 15-week in vivo study to study the effect on body fat deposition on mice. In summary, after incorporation of long-chain saturated fatty acids at the sn-1,3 positions of soybean oils, the resulted structured lipids becomes less obesogenic than native soybean oil. This is in-line with our previous observation by Gouk et al. (2013) and Gouk et al. (2014).

Title Oxidised Fat and Their Effects on Health

Speaker Dr Miskandar ShariHead of Protein & Food Technology Unit, Malaysian Palm Oil Board (MPOB), Malaysia

Abstract: Heating oils and fats for a considerable length of time results in chemical reactions, leading to aggravation of free radical processes that result in oil deteriorations and is easily recognized by its oxidized odour. Consuming such an oxidized oil may contribute to various health problems, as shown in our study using 40 rabbit model. However, we could question the extent of consumption do public at large may have on heated oils and fats. Frying is one of the most common food processing operations practised for more than 4000 years. Although, it involves heating of the oil during the process of cooking the food, it has its own quality indices that are measurable, in the oil as well as the food that is being cooked. Frying is extensively employed in domestic as well as industrial practice due to its ability to create unique organoleptic properties that make the food more palatable and attractive. Furthermore, frying is relatively simple, convenient and economic viability which lead to extensive sales of fried products. However, oil stability is of major concern since oil degradation occurs upon exposure at high frying temperatures. It involves a complex pattern of thermolytic, oxidative and polymeric reactions that are much dependent to the oil and food compositions, and operating conditions. Oxidation is considered as the major deteriorative reactions during heating and frying since it induces a significant loss of quality by changing the functional, sensory, nutritional values and safety of the fried food. As frying oil is part of the fried food, it is therefore essential to focus on the management of oil with the aim to minimise oil deterioration throughout the frying process. With this in mind, our study focuses on elucidating the effect of feeding heated oils with or without dietary cholesterol on the development of atherosclerosis in rabbits. Palm olein and corn oil were used in this study. Oils were prepared by heating them in an electrical heated split open fryer at 180oC for 18 hours, 9 hours per day for two consecutive days. Forty male New Zealand White rabbits were divided into four groups of ten animals each and were fed diets as follows: (i) heated palm olein (HPO), (ii) HPO with added dietary cholesterol (HPOC), (iii) heated corn oil (HCO) and (iv) HCO with added dietary cholesterol (HCOC). Animals were fed ad libitum for 100 days. Results suggest that heated palm oil confers better protection against the onset of atherosclerosis compared to heated polyunsaturated oils (corn oil) in a rabbit model. This paper, therefore, provides an overview on the performance of palm oil during frying at various processing conditions in comparison to other conventional liquid oils and the effects of heated oils to rabbit model.

Keywords: frying, palm oil, oil degradation, oil and food compositions, operating conditions.

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Title Vitamin A Intervention Programme for School Children in China Using Red Palm Oil

Speaker Prof Sun Gui JuSoutheast University, China

Background : Gansu is an economically undeveloped province located in northwest China. Children in this rural area still suffer undernutrition, especially Vitamin A deficiency (VAD). Red palm oil (RPO) has been known as an excellent source of pro-vitamin A carotenoids for decades. Indeed, it was used to prevent or ameliorate VAD in India in the 1930s and West Africa in the 1940s. Because of its exceptionally high pro-vitamin A carotenoids content, RPO has been proposed as a food-based intervention to prevent VAD in human.

Objective : In order to search for an effective intervention strategy to eliminate VAD of school-age children in this rural area, Chinese Nutrition Society and Malaysian Palm Oil Board conducted a Vitamin A (VA) intervention program in two areas (Longxi and Xigu) in Gansu using biscuits rich made with RPO. This study is aimed to assess the efficacy of Vitamin A supplementation coming from RPO in eliminating undernutrition among school-age children.

Method : 2000 elementary school students (7-12 years) were randomly selected from 14 schools, of which 1365 (711 boys, 654 girls) are from 8 Xigu schools and 635 (347 boys, 288 girls) are from 6 Longxi schools. Nutrition biscuits (made with RPO) were distributed to students by school teachers at a fixed time every day, on top of normal diet. The biscuits were in 50 gram package. Students aged 7-9 received 1 package per day, providing 91.06 µgRE daily VA intake. Students aged 10-12 received 3 packages per two days, providing 136.59 µgRE daily VA intake. The dietary survey and anthropometric measurement were carried out before and after 6 month intervention. The vitamin levels in serum of 296 students (142 from Xigu, 154 from Longxi) were determined at baseline and after intervention. According to NHANES standard, deficiency is defined as the serum vitamin A (SVA) level<0.70 µmol/L (<0.2 µg/ml); marginal deficiency is defined as the SVA level between 0.70 ~ 1.05 µmol/L (0.2 ~ 0.3 µg/ml); normal is defined as the SVA level≥1.05 µmol/L (≥0.3 µg/ml).

Results : Before the intervention, students’ intakes of grains and cooking oil were adequate; but their intakes of dairy products, eggs, meat, soybean products, vegetables and fruits did not reach their respective adequate intake ranges. After the intervention, the intakes of all food groups have improved, but dairy products, eggs, soybean products and fruits still did not reach adequate intake. Compared to the 2012 national school-age children average energy intake (2172 kcal), the average energy intake of sample children before and after intervention were 75.9% and 94.9%, respectively. After the intervention, sample children’s intakes of µgRE, calcium and iron increased significantly (P<0.05).Although the students’ average body height increased after the intervention, it’s still shorter than national standard. Their average body weight approached national standard after intervention.The SVA deficiency rate of children decreased from 5.07% to 1.01% after the intervention. The SVA marginal deficiency rate decreased from 16.55% to 5.07%. The overall deficiency rate decreased significantly from 21.62% before intervention to 6.08% after.

Conclusion : The vitamin A coming from RPO intervention in the school-age student in Gansu, China is effective in prevention of vitamin A deficiency. RPO is a potential food to prevent vitamin A deficiency.

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Title Industrial production of Hard PMF with Statolizer Fractionation Technology

Speaker Dr CalliauwDesmet Ballestra Group, Belgium

Since its introduction in the edible oils industry in the early 2000’s, Statolizer Fractionation Technology is established as a potent, safe and cost-effective industrial technology for the production of high added-value specialty fats. The typical asset of Statolizer Fractionation Technology is the fact that it allows to fractionally crystallize a fat in a homogeneous way without agitation. Hence, the typical mass and heat transfer problems that occur for highly viscous slurries in classic stirred tank reactors can be efficiently dealt with. A subsequent fluidization of the slurry allows then a very thorough separation of remaining liquid from the crystal mass, and the crystals can be separated with high efficiency in a membrane press-filter. The resulting product is a fat with a very sharp melting profile. After bringing spectacular innovations in the field of Cocoa Butter Substitutes (CBS) processing from palm kernel oil, Statolizer Technology is now in 2016 further optimized for the production of hard Palm Mid Fraction, which form prime ingredients in Cocoa Butter Equivalents (CBE). This new technological leap forward is the result of advanced R&D programs, including actual production of these speciality fats, in close collaboration with selected industrial partners. When embedded in a smart multistage-fractionation pathway of palm oil, the Statolizer is Desmet Ballestra’s state of the art technology to boost the hard PMF yields and qualities above the levels commonly achieved through conventional dry fractionation, for any given soft PMF, in a 24/7 reality for palm oil processors worldwide.

Title Tocotrienols and Health : A Review

Speaker Prof Yuen Kah HayUniversiti Sains Malaysia

Vitamin E is a general term for 2 classes of compounds, namely tocopherols and tocotrienols. Both classes share a similar chemical structure consisting of a chromanol head and a phytyl side chain. The side chain of the tocopherols is fully saturated while that of the tocotrienols has 3 double bonds at the 3, 7 and 11 positions.

Tocopherols are more readily found in nature, such as in many edible oils including soybean oil. Tocotrienols on the other hand are more elusive. Crude palm oil has one of the highest contents of tocotrienols and they have been extracted and made available commercially.

Recent studies have shown that tocotrienols have certain unique or more potent biological activities compared to tocopherols. For example, studies have shown the tocotrienols to be more potent anti-oxidants compared to tocopherols. Anticancer and neuroprotective effects are among the unique biological activities that have been much investigated, including trials in human subjects. In this presentation, some of these studies will be highlighted, especially those pertaining to their neuroprotective activities. Based on the results of the studies, tocotrienols can have a beneficial role in neurodegenerative disorders leading to cognitive impairment and dementia, including stroke. Moreover, tocotrienols have the potential to be used as an adjunct in cancer therapy, together with conventional anti-cancer treatments such as chemotherapy and radiotherapy.

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Sustainability

MODULE

05

Dr Yew Foong KheongMalaysian Palm Oil Council (MPOC), Malaysia

More and more human activities are embracing sustainable practices. In fact, sustainability has become a buzzword. It is commonly taken to mean the ability to continue a defined behaviour indefinitely. Today, the word is used so often and sometimes, so loosely, in almost every sphere of human activity such that its meaning has broadened and become more diffused.

There is a continuous insatiable demand for food and energy in the world. In this respect, oils and fats play vital roles to meet these demands. Among the seventeen oils and fats in the world, palm oil, soya, rapeseed and sunflower are the four principal sources. They are used for many food and non-food applications. Of late they have also become important feedstocks for biofuels and renewable energy.

Ensuring environmental sustainability is needed in order to maintain sustainable production of oils and fats. The palm oil and soya industries are embracing sustainability. The palm oil industry has come up with several sustainability schemes such as Roundtable on Sustainable Palm Oil (RSPO), International Sustainability and Carbon Certification (ISCC), Malaysian Sustainable Palm Oil (MSPO) and Indonesian Sustainable Palm Oil (ISPO). The soya industry uses the Roundtable for Responsible Soy (RTRS). The other sources of oils and fats have yet to catch up.

The module will show how palm oil and soya industries, in particular, are managing sustainability and the challenges encountered. The module will also show where the newer concerns are with regard to sustainability in the production of oils and fats.

Chairperson:

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Title Maintaining Palm Oil Industry’s Viability Through Managing Its Sustainability Concerns

Speaker Y Bhg Tan Sri Datuk Dr Yusof BasironChief Executive Officer, Malaysian Palm Oil Council (MPOC), Malaysia

The palm oil industry is and will continue to produce palm oil in a sustainable manner. It does this by carrying out sustainable practices in the three pillars of sustainability, namely People, Planet, Prosperity during the pursuit of development.

There have been constant sustainability demands on palm oil which are slanted towards concern of only one pillar of sustainability, namely Planet Earth. Many of these concerns are unilateral and, often, very biased. A classic example is the call for ‘No Deforestation’ which ignores the need for development of a state or county which has more than 80% of its area still under forest. In addition, there are many ongoing moves to set up more unilateral demands on palm oil. One example is the move to limit land for planting oil palm if the carbon stock in the area exceeds 25 tonnes C per hectare as proposed by Greenpeace/Forest Trust/Golden Agri Resources in 2012. This has since been revised to 75 tonnes C per hectare by the High Carbon Stock Science Study. Many of the sustainability demands are created by NGOs and their adoption will challenge and even overrule the sovereignity of the palm oil producing countries, all of which are developing countries, often with large tracts of forest yet to be felled for development.

There is money to be made by creating so-called sustainability issues. Palm oil sustainability comes with a demand to show evidence that it is sustainably produced. This requires certification which requires much time, manpower and finance. A recent study shows that RSPO certification in Malaysia comes with a cost of RM851 million annually if the total palm oil production of 19.7 million MT is to be certified. The study also shows that RSPO certification is not economically viable under the present scenario of poor acceptance of sustainable palm oil in the world. Certified palm oil also carries a higher carbon footprint than non certified oil due to the large amount of extra activities related to preparation of the area, audit and certification.

Sustainability is also used to manipulate palm oil trade. One recent example is the French Palm Oil Tax which proposes to impose a tax of Euro 90 per tonne of ‘unsustainable palm oil’. This tax violates both WTO and EU rules.

The palm oil industry must continue to carry on the sustainability journey and to imbibe new practices when they are available. At the same time, it has reached a point where it is confronted with new sustainability demands all too often. The industry must stand vigilant and united to confront new demands if they are unrealistic and done in the guise of sustainability. Only then can the palm oil industry remain viable and current. If not, palm oil trade will be diminished while scarce manpower resource will be channelled to address these ever increasing issues, when they could be more gainfully employed to produce palm oil to feed the world more economically and sustainably.

Title Findings of the High Carbon Stock Study and the Implication on the Palm Oil Industry

Speaker Mr Mark Wong Joon LoiSime Darby Berhad, Malaysia

In recent years, many companies involved in the palm oil industry have deepened their commitment to sustainable development by pledging to eliminate deforestation from their supply chains. In particular, to move away from the conversion of forests that contain significant carbon stock.

In December 2015, the High Carbon Stock (HCS) Study launched the HCS+ methodology to identify forests for protection, based on the potential greenhouse gas emissions from land-use change. HCS+ also seeks to take into account the socio-economic development needs of fragile economies and impoverished communities. It was designed to complement and build on existing standards and frameworks, such as the Roundtable on Sustainable Palm Oil’s (RSPO) Principles & Criteria and High Conservation Value (HCV).

HCS+ was commissioned by a group of leading businesses in the palm oil industry, and developed by a panel of independent scientific experts in the fields of biomass and soil carbon, remote sensing applications and socio-economics.

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Title Water Footprint of Oil Palm Cultivation

Speaker Dr Vijaya SubramaniamPrincipal Research Officer, Malaysian Palm Oil Board (MPOB), Malaysia

The Malaysian oil palm industry contributes immensely to the nation’s economy and is an export orientated industry. The industry is constantly asked to prove the sustainability of their products. Sustainability is no longer an option because it will be the primary driver of economic development in the long term. Currently carbon footprint is such a catchphrase in the world that it has become a must for responsible producers to quantify their carbon footprint or also known as greenhouse gas (GHG) emissions. The by European Union (EU) Renewable Energy Directive has imposed a non- tariff barrier on the imports of palm biodiesel based on GHG emissions calculations and In 2012 Environmental Protection agency (EPA) of USA under the RFS2 published the NODA stating that oil palm biofuel does not meet the GHG threshold requirements when compared to fossil fuel. Now EPA is still in the process of evaluating if palm biodiesel will meet the GHG requirements set by them for import into the USA. These non-tariff barriers which are solely based on environmental performance of the product have brought a big impact to the oil palm industry on the market access of palm biodiesel and also an impact to the image of palm oil. Just as how carbon footprint is creating such an impact to the oil palm industry, the next catchphrase in the environmental front is water footprint. In view of this there is an imminent need for the oil palm industry to be accountable for its water consumption and pollution. MPOB had embarked on a water footprint study. This study has a cradle to gate system boundary which starts at the oil palm nursery right till the palm oil mill. It covers the water footprint of the production of oil palm seedlings; oil palm fresh fruit bunches and the production of crude palm oil (CPO). The methodology used was a method that is in line with the ISO14046:2014 Water footprint standard and listed in the WULCA working group. The method calculates the water footprint based on the local water stress index (WSI). The water footprint covers both direct and indirect water consumption and pollution. The functional unit for this study was 1 tonne CPO produced at the palm oil mill. The findings show that regions like Malaysia with high recharge of renewable water with very low WSI are the best regions to plant oil palm as it gives a very low water footprint number which shows that the impact from water use from the oil palm cultivation is low. This is also because oil palm trees are rain fed and not irrigated.

Keywords: water footprint, crude palm oil, oil palm tree, LCA, palm oil mill

Title Available Technologies to Increase Palm Oil Productivity and Yield from Existing Land Area

Speaker Dr Xaviar ArulandooUnited Plantations Berhad, Malaysia

As the second largest palm oil producer in the world, Malaysia with a total planted area of 5.642 (4.859 mature + 0.783 immature) million hectares produced 19.9 million tonnes of oil in 2015 (MPOB Statistics, 2016). Increase in net oil production over the last ten years from approximately 14.9 million tonnes is attributed primarily to increase in total planted area (MPOB Statistics, 2016). Average annual oil yield per hectare is reportedly stagnating and to be within four tonnes. Global demand for palm oil is predicted to reach 77 million tonnes per year by 2050 (Palm Oil Research, 2015). With limited land availability, this demand must be met with increased productivity and yield from the currently planted area. Efforts in research at present have been directed towards breaching the stagnating national oil yield. A large disconnect is seen between national averages and yields achievable with currently available planting materials. Clearly, there is a lack in exploitation/maximization of the yield potential in the fields. Current oil palm plantings in the country are in optimal and marginal soil conditions. There are many cultural causes to the yield gap requiring corrections in various operations. Amongst them are thoroughness in nursery management, land preparation, replanting techniques, use of improved planting materials as well as upkeep immature and mature (manuring, pest and disease management, harvesting standards, mechanization etc.). It is envisaged that with holistic good management practices and the planting materials currently available, average national yields can exceed seven tonnes oil per hectare per year on areas with good soil/ground conditions. However, the biggest boost in national average will have to be derived from improvements in oil palm cultivation in marginal soils such as acid sulphate, peat, sandy textured soils as well as in challenging terrains such as rolling to hilly landscape and low lying areas prone to water logging. Adoption of precision agricultural technology will further enhance better understanding of the environment facilitating improved agro-management practices such as for pest and disease, drainage etc. which will collectively lead to increased productivity and yield. Dependency on labour however will be a prime constrain to all the above. Mechanization aspects will be a crucial determinant of oil palm productivity.References :Malaysian Palm Oil Board (MPOB) Statistics (2016). http://bepi.mpob.gov.my/index.php/statistics/

Palm Oil Research Statistics (2015). http://www.palmoilresearch.org/statistics.html

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