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About RSPO | RSPO NGO

Posted by Flora Sawita Labels: About, Agribusiness, Agriculture Business, agro industries, Business Plan, Indonesia, industri sawit, Malaysia, Oil Palm, Palm Oil Business, RSPO

RSPO Certificate

In response to the urgent and pressing global call for sustainably produced palm oil, the Roundtable on Sustainable Palm Oil (RSPO) was formed in 2004 with the objective promoting the growth and use of sustainable oil palm products through credible global standards and engagement of stakeholders.

The seat of the association is in Zurich, Switzerland, while the secretariat is currently based in Kuala Lumpur with a satellite offi ce in Jakarta.

RSPO is a not-for-profi t association that unites stakeholders from seven sectors of the palm oil industry - oil palm producers, palm oil processors or traders, consumer goods manufacturers, retailers, banks and investors, environmental or nature conservation NGOs and social or developmental NGOs - to develop and implement global standards for sustainable palm oil.

Such multi-stakeholder representation is mirrored in the governance structure of RSPO such that seats in the Executive Board and project level Working Groups are fairly allocated to each sector. In this way, RSPO lives out the philosophy of the "roundtable" by giving equal rights to each stakeholder group to bring group-specifi c agendas to the roundtable, facilitating traditionally adversarial stakeholders and business competitors to work together towards a common objective and making decisions by consensus.

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Indonesian Palm Oils Exports

Posted by Flora Sawita Labels: agro industries, Export, exports, GAPKI, Indonesia, Industri Kelapa Sawit, industri sawit, Oil Palm

Source: GAPKI NEWSLETTER OCT-NOV 11 | Date: 06 JAN 2012 | Author: GAPKI

Compared to the previous year of the same month, total Indonesian palm oil export in October 2011 increased around 11% from 1.59 million metric tons to 1.77 million metric tons. However, the increase of October export from the previous year was lower than that of September which had an increase of 16%, from 1.38 million metric tons on September 2010 to 1.60 million metric tons on September 2011. If October 2011 export was compared to the previous month, it increased around 10% from 1.60 million metric tons in September 2011 to 1.77 million metric tons.

The export consists of palm oils and kernel oils. In October 2011 the export consisted of 73% of palm oils and 27% of kernel oils with the amount of 1.30 million tons and 469 thousand tons respectively. The composition was a little bit change, in the same month of previous year it consisted of 91% of palm oils (1.45 million tons) and 9% of kernel oils (145 thousand tons)

Indonesian Palm Oils Exports by Products (1000 Ton)

Year	2011	Palm Oils			Kernel Oils
Products	Total	Palms	Procd	Crude	PKO's	Procd	Crude
Total	12.843,41	11.796,25	5.249,32	6.546,93	1.047,16	182,18	864,98
Jan	1.529,89	1.372,02	525,98	846,03	157,88	26,81	131,06
Feb	1.218,33	1.097,29	559,50	537,79	121,04	20,69	100,35
Mar	814,98	753,23	390,77	362,46	61,76	10,51	51,24
Apr	1.400,75	1.319,93	591,69	728,24	80,82	22,01	58,81
May	1.751,70	1.609,42	697,37	912,05	142,28	12,85	129,43
Jun	1.483,80	1.394,72	553,70	841,02	89,09	14,32	74,76
Jul	1.218,01	1.140,04	558,33	581,70	77,98	16,06	61,91
Aug	1.824,62	1.688,09	693,71	994,38	136,53	20,37	116,16
Sep	1.601,31	1.421,51	678,26	743,25	179,79	38,54	141,26
Oct	1.765,81	1.297,13	703,75	593,38	468,68	393,47	75,22

Palm oils are in the forms of CPO, RBDPO, RBDOL, Crude OL, RBD ST, Crude ST and PFAD, while kernel oils are in the forms of CPKO, RBD PKO, PKE, RBD PKST, CNO, RBD CNO, COPEX, PKFAD. Unlike in the previous months, in October 2011 for the first time Indonesia exported more in the form of the processed palm oils than that of crude palm oil. The processed palm oils share was around 54%, while the crude palm oil was around 46%. The same as palm oils, in October 2011 kernel palm oil was mostly exported as processed kernel oils. The export of processed kernel palm oil was 84% 469 thousand tons of kernel palm oil and the rest 16% was in the form of crude kernel oils.

The increase of the Indonesian palm oil export in October 2011 compared to September 2011 was helped by the short supply of soya oil and rape oil in the world. Critically dry weather in some parts of South America contributed to the short supply of soya oil. La Nina was blamed for the condition. World production of sunflowerseed was also down that further increased the palm oil demand. Since some major commodities of oilseed are subject to supply constraint, it raised the need for alternatives for many importing countries, and palm oil is the best alternative. It is predicted that world export of palm oil will need to increase by roughly 1.5 MT.

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what is alcohol?

Posted by Flora Sawita Labels: Agribusiness, Agriculture, agro industries, alcohol, CIS

what is alcohol? - In chemistry, alcohol is an organic compound that binds to the hydroxyl functional group (-OH) to a carbon atom, usually associated with other carbon atoms or hydrogen.

An important class of simple acyclic alcohols, the general formula CnH2n 1 OH. Of these, ethanol (C₂H₅OH) is a type of alcohol found in alcoholic beverages and a common language the term refers to alcohol, particularly ethanol.

Other alcohols are usually described with a clarifying adjective, as in isopropyl alcohol (propane-2-ol) or wood alcohol (methyl alcohol or methanol). The suffix-ol is shown in the IUPAC name of all substances which the hydroxyl group is the functional group with the highest priority drug, where a group of highest priority is displayed at this prefix hydroxy IUPAC name. The suffix-ol in non-systematic names (such as paracetamol or cholesterol) also typically indicate that the compound contains a hydroxyl function, and can therefore be considered an alcoholic. However, many substances (such as citric acid, lactic acid, and sucrose) contains one or more hydroxyl functions without using the extension.

From: Wikipedia

agriculture, agribusiness, agro industries, food, alcohol, industry, orange, rubber, paper, market, machine, fruit, coffee, cocoa, tobacco, latex, chocolate, sugar, coconut, biogas, grape, food, pulp, meat, wheat, vanilla, corn, vegetable, ethanol, tea, butter, milk, beef, pepper, cheese, flour, apple, margarine, cane, rice, fish, price

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Definition of Agro Industry Cluster

Posted by Flora Sawita Labels: Agribusiness, Agriculture, agro industries, Agro-industry, CIS

Cluster-based economic development, including agro industry cluster has received increasing attention from researchers and many organizations, including OECD, European Commission, the U.S. National Governors Association, and USAID. Also a large number of regions and nations have launched initiatives to develop or strengthen clusters.

The cluster concept is mainly motivated by the research work of Michael Porter. Porter (1990), clusters are groups of companies and institutions co-located in a specific geographic region and linked by interdependencies in providing a related group of products or services. "Because of the proximity, both in terms of geography and activities between them, voters take clustered economic benefits of various types of externalities of location.

Clusters arise because they increase productivity by allowing companies to compete. Development and improvement of the cluster is an important agenda for governments, businesses and other institutions. Cluster development initiatives are important new direction in economic policy, based on past actions and macroeconomic stabilization, privatization, open markets and reduce costs of doing business.

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Investment Environment of Agricultural and Agro-industries Sector in Tajikistan

Posted by Flora Sawita Labels: Agribusiness, Agriculture, agro industries, CIS

Agricultural-Agro-industries-Sector-Tajikistan

The government made some efforts to promote investment, but the bureaucratic process is arbitrary and restrictive. Although some foreign entities have invested in Tajikistan, the political and economic instability have discouraged a significant amount of foreign direct investment. Corruption and lack of democratic reform, deters investors from making investments and the slow pace of privatization, particularly for medium and large enterprises, must be kept low in the investment business. Other factors that prevent investors access to finance and weak public administration.

The International Monetary Fund (IMF) said that residents and non-residents may hold foreign exchange accounts, though residents can not keep them abroad without the approval of the central bank. Restrictions on payments and transfers include quantitative limits on foreign workers' wages and conditions for repatriation. Many movements of capital required central bank approval.

Tajikistan banking system is weak and is formed by the central bank and 16 commercial banks. Commercial banks have focused on the supply of credit by the central bank for state enterprises in the agricultural and industrial sectors. The state controls most of the assets of the financial system. The banking system is largely ineffective and more people conduct business, including financial activities in the economy. bureaucratic corruption is the main obstacle to investment. The procedure for starting a business is both tedious and slow. Corruption, excessive regulation and absurd tax policies have frustrated the development of the private sector.

Tajikistan has the lowest average annual foreign direct investment since 1993, all members of the CIS. The civil war and unstable political situation was the main reason is the very low level of foreign direct investment. FDI stock in 1993, at the end of 2001 was U.S. $ 127 million, and gross FDI inflows in 2003 and 2004 were U.S. $ 31,600,000 and $ 22,400,000, respectively. Most foreign investment is concentrated in the textile agro-industries, and industries in which small-scale investments. The largest amount of FDI is concentrated in the textile sector with 44.6 per cent and the mining sector, where 42.1 percent of the total cumulative investment during 1993-2001.

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Investment Environment of the Agricultural Sector in Kyrgyz Republic

Posted by Flora Sawita Labels: Agribusiness, Agriculture, agro industries, CIS, Kyrgyz Republic

Kyrgyz Republic has implemented policies to transition the most liberal and democratic in Central Asia to achieve economic stabilization and restructuring. The country has a market-friendly trade regime, and no exchange controls. They joined the WTO in 1998. Government of Kyrgyzstan is actively working to improve the investment climate in the country. The last five years, investment arrays have been developed and implemented to increase private investment and promote economic growth. In addition, policies to limit inflation, reducing the budget deficit, and maintaining the stability of the real exchange rate has helped to improve the investment climate.

In recent years, inflation was running below 5 percent and som / dollar has remained stable, with some appreciation of the som against U.S. dollar in 2002 and 2003. The budget and current account deficits have improved since 2000. However, macroeconomic fundamentals remain an issue with important implications for the sustainability of future growth and capacity to reduce poverty Kyrgyzstan. These problems are caused by high levels of public spending and public debt, slow important elements of the program of economic reform in the banking sector and poor governance structure. There are also chronic problems of corruption, employment, and inefficiency in the public sector.

The inflow of FDI is important for Kyrgyzstan to achieve sustainable economic growth and improve their export potential. Although domestic savings rose 12 percent to 13 percent of GDP in 2002-2003, the amounts are not yet sufficient for the country. The country also has to limit the growth of external public debt by reducing the scale of the loans financed by the Public Investment Program and grants from international development organizations. And to attract more foreign direct investment necessary financial resources, technology, management, and linkages to export markets.

While the cumulative FDI to Kyrgyzstan were U.S. 453 million U.S. dollars from 1993 to 2001, FDI in 2003 and U.S. $ 2004 147 million and U.S. $ 175 600 000, respectively. With a new investment policy of the government of Kyrgyzstan, inward foreign direct investment shows trend. However, agriculture, processing industries, especially agricultural products still requires stable FDI inflows. While the domestic market for processed foods is low, Kyrgyzstan faces a more difficult competition for agricultural products and foodstuffs. Traditional export markets in the CIS countries are currently building new food import links with China and Europe. consumer expectations in these traditional markets have increased significantly since the 1980

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Investment Environment of the Agriculture in Mongolia

Posted by Flora Sawita Labels: Agribusiness, Agriculture, agro industries, CIS

Government of Mongolia has launched several efforts to get foreign investments and priorities in such areas as construction, information and information technology (IT), where agriculture is at the bottom of the priority list.

With the 2002 amendment to the Act on Direct Investment, Government of Mongolia is seeking to create a more favorable investment environment for investors. Investment and Foreign Trade Agency (TIFF), which was established in 1996, is primarily responsible for direct investments under the Ministry of Industry and Commerce. Law recognizes companies and foreign invested company, where foreigners account for 25 percent or more of the investment.

To attract more foreign investment, investment in social infrastructure such as roads, electricity, telecommunication facilities are 100 per cent tax-free within 10 years of profits and 50 percent for exempt next five years. For other sectors, where more than 50 percent of products exported, there will be tax exemption on profits for three years, and 50 percent for the exemption of the next three years.

Since early 1990, the inflow of FDI has increased steadily, and recently, the rate is increasing. China is the largest investor in Mongolia, in terms of amount of investment with 40 percent of total FDI, followed by Canada (14 percent), United States (10 percent), Korea (7 percent) Japan (5 percent) and Russia (3 percent). The mining sector has the most investment flows, while the sectors of food and beverages, and agriculture received 16 million and 10 million between 1990 and 2004, taking up only 2 percent of total investment.

With the exception of land, all companies can invest 100 percent foreign-owned and operated without a partner of Mongolia.

Indeed in 2005, the Government of Mongolia passed the Law for the Free Trade Zone and other relevant regulations to construct complex near the free economic zones bordering Russia and China, for example. Altanbulag, Zamyn-Uud and Tsagaan Nuur.

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Business Environment of the Agro-Industry Sector in Uzbekistan

Posted by Flora Sawita Labels: Agribusiness, Agriculture, agro industries, CIS

SMEs are expanding in Uzbekistan partly because of the support from the government. The number of active SMEs in 2004 was 237.5 thousand, which is much higher compared with 177.7 thousand in 2001. The SME's share of GDP was 35.6 percent of nominal GDP in 2004 and is projected to be 45 percent in 2007. This governmental supports to SMEs will facilitate the agro-industry development, and many entrepreneurs are by and large optimistic about the possibilities for business growth.

The speed of privatization is slow in Uzbekistan. According to the World Bank estimates, Uzbekistan agricultural reform to market-oriented economy is still a long way to go. In terms of privatization of agro-processing and input supply industry, spontaneous privatization and mass privatization are just in the early implementation stage.1 Rural banking systems and governmental and public institutional frameworks are also in the modest restructuring stages.

The Uzbekistan government has formally declared its pro-foreign investment policy. In 1993, the foreign investment comprises only 0.8 percent of total capital investment, but in 2003, it increased to over 20 percent. Foreign investors have had more interests in manufacturing sectors including oil and gas industries.

The largest share of foreign direct investment in 2002 comes from Russia (15.7 percent), Korea (9.8 percent), and the U.S. (8.7 percent). The data on the amount of foreign investment by sector are not easily available, but in view of the number of investment, manufacturing sector has received the largest portion of FDI with 58 percent, while the agricultural sector takes only 2.7 percent.

Table 1. Foreign Investment as of June 2004

Investment		Number of company	Percentage (%)
Manufacturing	Consumer goods	602	26.3
	Others	733	32.0
	Total	1,335	58.3
Trade, restaurant		472	20.6
Agriculture		61	2.7
Transportation & communication		96	4.2
Construction		85	3.7
Health & sports		55	2.4
Culture & others		185	8.1
Total		2,289	100.0

Source: Korea EXIM Bank, 2005

In 2005, the government of Uzbekistan declared a new unified tax system. Under the system, venture companies jointly invested by foreign investors are exempted from profit tax for seven years. Here, the foreign joint venture means the company with foreign capital of at least 150 thousand US$ or over 30 percent of its capital. The conditions get better in remote areas. Assets of foreign investors are protected through the “Laws on Property of Foreign Direct Investment”.

Those companies producing agricultural products are exempted from asset tax; for individual agricultural production unit, tax rate is decided based upon yield, geographical characteristics, accessibility to irrigated water, and so on.

It is problematic in terms of development of agricultural and agro-industry sectors that most joint ventures are in the manufacturing sector. And many SMEs, in spite of government’s efforts to stimulate domestic and foreign investment, are not active in reinvesting their earnings.

Internal turbulences, as envisaged in May 2005, have negatively affected the investment intention of both home and abroad. Slow privatization is also a major factor hindering the investment promotion.

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Investment Environment of the Agro-Industry Sector in Kazakhstan

Posted by Flora Sawita Labels: agro industries, Agro-industry, CIS, food agriculture, Food Processing, Investment, Kazakhstan

In 2003, Kazakhstan newly enacted the Act for New Foreign Investment after abolition of the Act for Foreign Investment and the Law on State Support for Direct Investment. Under the new law, there is no discrimination between domestic and foreign investors. Investment favors are provided in priority sectors, which include following sectors: industrial infrastructure, processing industry, agriculture, agro-industry, housing, the social sector and tourism infrastructure. The incentives for direct investments in the priority sectors are: property tax and income tax exemptions for up to five years respectively, and exemptions or reductions in customs duty on materials necessary for completion of the investment project.

In 2002, the new law on taxation was enacted. Taxation system of Kazakhstan generally seems to be coincident with international standards. However, there are so many taxes imposed on enterprises, which may distort profit structure of enterprises. The maximum tax rates are different across according to sources of taxes: 30 percent for corporate tax, 15 percent for value added tax, 21 percent for social security tax. It is estimated that 32-35 percent of total revenue accounts for taxes paid by enterprises, implying that the tax burden is high.

Table 1. Selected Tax Rates in Kazakhstan

Types	Tax Rate
Corporate Tax Value Added Tax Land Tax Property Tax Social Security Tax Commodity Tax Transportation Tax Auction Tax	Up to 30% Up to 15% varies by use 1% Up to 21% varies by commodities varies by transportation types 3%

Source: Korea EXIM Bank, 2005

Kazakhstan has tried to improve the investment climate to attract FDI to more sectors including oil industry since its independence from the Soviet Union in 1991. For this purpose, Kazakhstan enacted four major legislations relating to foreign investment, such as the Act for Foreign Investment in 1999, the Act for State Support for Direct Investment in 1997, the Act for Government Procurement in 1997 and the Tax Code in 2001.

As a result, Kazakhstan has been fairly successful in attracting FDI, which supported economic recovery. During the period from 1993 to 2003, gross FDI inflows to Kazakhstan totaled USD 23.4billion. As of 2003, crude oil and natural gas extraction accounted for 51.8 percent of gross FDI, while agriculture, forestry and fishery accounted for 0.04 percent. Food industry, which is based on agriculture, is predominantly domestic market oriented and not lucrative due to low market demand for the local food products, implying that it is less attractive to foreign investors.

Table 2. Foreign Direct Investment (FDI) in Kazakhstan by Sector
Unit: million USD, ( %)

	1993-2000	2001	2002	Jan.–Jun.2003
Agriculture etc. Mining Manufacturing Transport, etc Finance Real estate Electric power Others	7.4(0.1) 7,841.2(62.4) 1,766.4(14.1) 160.0(1.3) 206.4(1.6) 1,432.8(11.4) 433.0(3.4) 715.0(5.7)	5.0(0.1) 3078.1(67.7) 641.4(0.7) 161.1(161.1) 44.4(1.0) 456.5(10.0) 33.8(0.7) 124.3(2.7)	2.5(0.1) 2107.7(51.7) 829.5(20.4) 95.2(2.3.) 11.8(0.3) 841.4(20.7) 17.5(0.4) 167.9(4.1)	1.1(0.04) 1148.4(51.8) 433.3(19.5) 45.0(2.0) 7.8(0.4) 433.6(19.6) 58.4(2.6) 91.2(4.1)
Total	12,562.2(100.0)	4,544.6(100.0)	4073.5(100.0)	2218.8(100.0)

Source: National Bank of the Republic of Kazakhstan

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Tajikistan’s Agriculture and Agro-industry Sector

Posted by Flora Sawita Labels: Agriculture, agro industries, Agro-industry, CIS, food agriculture

Agriculture is Tajikistan’s major sector endowed with unique geographic and climatic environment. Due to its environment, Tajikistan can cultivate virtually almost all agricultural crops. The agricultural sector contributes nearly 30 percent to the country’s GDP and employs more than half of the total employment. In addition, it is responsible for more than 30 percent of exports. Especially, cotton alone provides 30 to 40 percent of budget revenues in taxes.

During the past years, about 400 agricultural producers have been restructured into over 14,000 farms with 3.8 million hectares of cropland. The agrarian reform significantly affected Tajikistan’s agricultural sector and related institutions. 85.3 percent of meat, 86.5 percent of milk, 81.5 percent of eggs, 56.7 percent of vegetables, and 66.3 percent of fruit and berries were produced by the private sector in 2001. However, the major part of the most valuable irrigated land is still controlled by state and collective farms.

The major food and agricultural commodities produced in Tajikistan are wheat, potatoes, cow milk, cotton seed, and cotton lint. Cotton lint is the major exporting agricultural commodity followed by onion and fruit products. Sugar, wheat, flour, and beef are major importing agricultural items of Tajikistan.

Cotton is the major crop whose production covers more than 50 percent of the country’s irrigated land. Before the independence, Tajikistan’s cotton yield per hectare was the highest in the central Asian region with an earning capacity of 60 to 70 percent of production costs. However, cotton production dramatically declined after the independence and halt of centralized supplies of material and technical resources. Furthermore, world lint cotton prices have dropped by more than 50 percent in the past years while prices of fuel, machinery, and fertilizers keep growing.

In Tajikistan, cotton marketing and production are subject to the state administrative system, there is no competition among participants. Also local government imposes extra charges on cotton sales to boost its tax collection.

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Agriculture and Agro-industry Sector of Kyrgyz Republic

Posted by Flora Sawita Labels: Agriculture, agro industries, Agro-industry, CIS, food agriculture, Kyrgyz Republic

The Kyrgyz Republic’s economy is predominately driven by agriculture and has relatively small manufacturing industry. The agricultural sector contributes nearly 40 percent to the country’s GDP and employs about half of total registered employment. Following the break-up of state owned enterprises, the agricultural sector has increasingly moved away from large scale collective farming to smaller subsistence level of family farming. Specifically, 40 percent of agricultural output is produced by private farmers and 54 percent from family farms.

The major food and agricultural commodities, produced in Kyrgyz Republic are potatoes, wheat, cow milk, sugar beets, and maize. Cotton lint and tobacco leaf are the major exporting agricultural commodities and wheat and sugar are major importing agricultural items.

As part of its effort to stimulate the development of the cotton sector, the government has set aside about 3 percent of total arable land for cotton production. This resulted in growth of cotton production from 75,000 ton in 1995 to about 122,000 ton in 2004. Nearly 80 percent of the cotton is grown by private farmers, which generates almost 5 percent of the total value of the country’s exports. However, high production costs from lack of fertilizers, pesticides, and herbicides weaken the industry and negatively affect country’s cotton export potential. Tobacco is also an important cash crop for the Kyrgyz agricultural sector. However, most of tobacco is grown by state owned enterprises and local value-added production activities are very limited.

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About RSPO | RSPO NGO

Indonesian Palm Oils Exports

what is alcohol?

Definition of Agro Industry Cluster

Investment Environment of Agricultural and Agro-industries Sector in Tajikistan

Investment Environment of the Agricultural Sector in Kyrgyz Republic

Investment Environment of the Agriculture in Mongolia

Business Environment of the Agro-Industry Sector in Uzbekistan

Investment Environment of the Agro-Industry Sector in Kazakhstan

Tajikistan’s Agriculture and Agro-industry Sector

Agriculture and Agro-industry Sector of Kyrgyz Republic

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