Driving Sustainability and Meeting Growing Demand: Insights from Sandeep Bhan, Sime Darby Oils COO, on the Global Palm Oil Industry Post-COVID
Introduction
Welcome to Globoil Post, where we share the latest highlights in the edible oil and agri-trade news. In this exclusive interview, we sit down with Sandeep Bhan, Chief Operating Officer – Global Trading, Sime Darby Oils, Malaysia. With over two decades of experience in the edible oil industry, Sandeep Bhan provides valuable insights on the palm oil industry, Sime Darby Oils' response to COVID-19 challenges, sustainable practices, and the business ties between Malaysia, Indonesia, and India.
Meeting Demand and Customer Expectations during COVID-19
As COVID-19 swept across the globe, Sime Darby Oils (SDO) swiftly prioritized the safety and health of its employees. Implementing essential safety measures enabled uninterrupted operations at SDO's refineries, ensuring timely order completion and fulfilling customer commitments during the challenging three-month lockdown. Despite fluctuations in demand from sectors like HORECA, SDO adapted to shifting markets, securing orders from other sectors to meet increased demand and maintain product availability. The trust garnered from customers during this period reinforced SDO's commitment to excellence and continuous service.
Impact of COVID-19 on Global Palm Oil Demand
COVID-19 initially affected the global demand for bulk palm oil and the HORECA business segment due to plummeting crude oil prices and widespread lockdowns. However, as governments ease restrictions and open up their countries, the palm oil industry shows signs of recovery. India, one of the biggest vegetable oil buyers, resumed its purchase of Malaysian palm oil after the lockdown, resulting in a significant month-on-month increase in imports. Palm oil's price competitiveness and the current low availability of sunflower oil in the market further solidify its position in India's market share.
Reinventing Business Strategy for Sustainable Products
As the downstream business segment of Sime Darby Plantation, the largest producer of certified sustainable palm oil, SDO is committed to sustainability. Europe has been a key consumer of sustainable palm oil, but SDO has seen increasing awareness and demand for sustainable products in markets like India and China. With a focus on traceability, SDO introduced 'Crosscheck,' an open-source online traceability tool. Strengthening sustainability credentials and fostering a deforestation-free supply chain remains a priority for SDO.
The Role of Business Ties between Malaysia, Indonesia, and India
India's unwavering support for palm oil has fostered strong business ties between the major palm oil-producing countries, Malaysia and Indonesia, and their Indian counterparts. Leveraging the zero export duty from Malaysia, competitive palm oil prices, and improved bilateral relations, the demand for palm oil from India is expected to remain robust.
GenomeSelectTM: Advancing Sustainability and Productivity
SDO's commitment to sustainability and increased productivity is evident through GenomeSelectTM, a higher-yielding oil palm seed. Extensive research and investment have led to remarkable results, including a 20% increase in yield compared to previous plantings. GenomeSelectTM aims to meet internal replanting needs by 2023 and contributes to a sustainable palm oil industry by identifying traits for climate resilience, disease resistance, and easier harvesting.
Conclusion
The palm oil industry faces challenges and opportunities as it navigates the impact of COVID-19 and moves towards sustainable practices. Sime Darby Oils, driven by a commitment to quality and sustainability, continues to meet market demands while pioneering advancements in yield and environmental responsibility. As we emerge from the pandemic, the collaboration between Malaysia, Indonesia, and India promises a bright future for the global palm oil industry, characterized by resilience, innovation, and sustainable growth.
