EFI, MSPO forge partnership to strengthen palm oil supply chains
The European Forest Institute and Malaysian Sustainable Palm Oil (MSPO) signed a cooperation agreement to strengthen sustainability, traceability, and smallholder integration in Malaysian palm oil supply chains. The partnership aims to ensure deforestation-free, responsible, and globally trusted production, supporting EU compliance and advancing policy, traceability, and innovation in sustainable palm oil trade.
The European Forest Institute (EFI) and the Malaysian Sustainable Palm Oil (MSPO) certification have formalised a strategic cooperation agreement to strengthen sustainability, enhance traceability, and ensure Malaysian palm oil remains a trusted choice in global sustainable trade.
The Memorandum of Cooperation (MoC), signed by EFI director Dr Robert Mavsar and MSPO chief executive officer Hafizin Tajudin, focuses on developing systems that guarantee deforestation-free supply chains, with particular emphasis on integrating smallholders and fresh fruit bunch (FFB) dealers.
By combining EFI’s scientific and international expertise with MSPO’s credible and inclusive national standard, the collaboration sets a new benchmark for supply chains that are inclusive, deforestation-free, responsible, and globally trusted.
The partnership will advance work in three key areas—policy development, traceability and legality systems, and knowledge exchange and innovation.
Under the collaboration, EFI and MSPO will explore initiatives to strengthen smallholder and FFB dealer integration through digital onboarding and group compliance models, ensuring Malaysian smallholders remain fully connected to premium markets. They will also evaluate how MSPO’s traceability system – which already captures geolocation, legality, and sustainability data from plantation to export – can support EU operators’ compliance with the European Union Deforestation Regulation (EUDR).
Hafizin Tajudin said this partnership is not about the EUDR alone; it is about ensuring that MSPO is future-ready for any global requirement.
“By working with EFI, we will draw on international expertise to strengthen MSPO’s traceability system, enhance data integrity, and advance inclusive compliance models. These efforts will position Malaysian palm oil to meet evolving global regulations and rising consumer demand for sustainable, deforestation-free, and responsibly sourced products, placing Malaysia at the forefront of the global debate on sustainable commodities, with EFI’s practical support being deeply valued.”
Dr Mavsar commended MSPO for its transparency and continuous efforts to review and strengthen its control systems, noting that Malaysia’s experience with a mandatory, government-led sustainability standard is drawing attention from other producer countries.
Both leaders agreed that the MoC represents an important step toward ensuring Malaysian palm oil continues to meet global sustainability expectations while protecting the world’s forests.
The partnership builds upon technical analysis carried out under the EU-funded KAMI Project in 2024 and will now continue under the EU-funded Malaysia Smallholder Project, supervised by the Ministry of Plantation and Commodities in collaboration with the EU Delegations in Kuala Lumpur and Bangkok.
Through the KAMI Project, EFI and MSPO examined how the MSPO certification system aligns with the EU’s deforestation-free requirements and identified areas for further enhancement.
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Source : Ukr Agro Consult
