Minister in no hurry on PKE ban, palm oil
The farming industry may turn away from the use of palm kernel expeller (PKE) without government intervention, Agriculture and Food Safety Minister Damien O’Connor has suggested.
O’Connor also indicated he had not yet made up his mind whether the mandatory labelling of palm oil in food for human consumption was warranted.
Lewis Road Creamery chief executive Peter Cullinane said this month that he favoured banning PKE in the wake of continuing concerns over its environmental impact in Indonesia, and human rights issues.
PKE is used as an alternative feed for cattle. Greenpeace forests campaigner Grant Rosoman said it felt let down by dairy giant Fonterra after PKE imports into New Zealand hit 2.1 million metric tonnes, with a retail value of about $500 million, last year.
O’Connor said New Zealand’s ability to ‘‘sustainably produce’’ and sell premium primary products was key to maintaining a strong economy and it needed to make the most of its natural advantages as a food producer.
‘‘Even if there were valid reasons outside of biosecurity to restrict or ban the import of PKE, it’s possible commercial imperative will move New Zealand away from its use without government intervention,’’ he forecast.
‘‘While PKE is an important tool for farmers when there’s a lack of feed such as during droughts and is an efficient feed option, some dairy companies are moving away from its use for market reasons as their customers abroad place a premium on grassfed dairy and beef.’’
Cullinane responded that leaving the demise of PKE to the market would take ‘‘a long, long time’’.
A downside with the approach was that even the tiniest amount of PKE in the supply chain would make it difficult for companies to market much New Zealand milk as PKE free, he said.
‘‘I appreciate the desire not to interfere with the market but sometimes it is a good thing to do.’’
A joint venture between Fonterra and Singaporean food giant Wilmar imports about a third of the PKE used in New Zealand, but the dairy co-operative potentially has broader influence over feed practices as a result of its dominant market position.
An Indonesian police unit hosted by Wilmar on some of its plantations to prevent palm fruit theft was accused of brutality by Indonesian NGOs this year following a shooting incident, prompting fresh controversy over the supplementary feed.