Progress and Update on Grant Allocation for 3-MCPDE & GE

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1 PORAM ANNUAL FORUM 2018 Progress and Update on Grant Allocation for 3-MCPDE & GE Rosidah Radzian Malaysian Palm Oil Board

2 Presentation Outline 1.Should we be worried about 3-MCPDE & GE? 2.Update on industrial trial and grant allocation 3. What is next on the horizon?

3 Should we be worried about 3-MCPDE & GE From Health Perspective? 3- and 2-MCPD esters are recognized as potential carcinogens by EFSA, Codex and WHO/FAO They can damage the kidneys due exposure through ingestion; free 3- MCPD is carcinogenic (cancerous).

4 Impact of EFSA s report on 3-MCPDE & GE Relevance of industrial food not containing palm oil Without palm oil Impact on TRADE Source: Ferrero

5 Turkey: Palm Oil is associated with the risk of getting CANCER (EFSA s Report on 3-MCPDE &GE) Example: Sale of Nutella has suffered badly in Turkey Source: Ferrero

6 Status of GE in EU: Commission Regulation (EU) 2018/290 of 26 February 2018 The European Commission published Regulation (EU) 2018/290 of 26 February 2018, amending Regulation (EC) No 1881/2006 concerning maximum levels of GE in food The Regulation entered into force on 19 March 2018 and establishes the maximum limits of GE in vegetable oils and fats, infant formula, follow-on formula and foods for special medical purposes intended for infants and young children

7 Limit of GE from the EU for the exporting countries Item Foodstuffs Maximum level of GE [1] Vegetable oils and fats placed on the market for the final consumer or for use as an ingredient in food with the exception of the foods referred to item [2] 1.0 ppm [2] Vegetable oils and fats destined for the production of baby food and processed cereal based food for infants and young children 0.5 ppm Commission Regulation (EU) 2018/290 of 26 February 2018

8 ALERT!!!

9 Limit of 3-MCPDE in the EU EFSA decided to re-open the assessment of 3-MCPD and its fatty acid esters, following a detailed analysis of the divergences in opinions, between the Joint FAO / WHO Expert Committee on Food Additives and EFSA. Therefore it is appropriate to wait for the outcome of the assessment of 3-MCPD and its fatty acid esters before taking appropriate regulatory measures NO LIMIT HAS BEEN SET FOR 3-MCPD ESTERS Fideol is proposing the level of 3.0 ppm by 2020 ; 2.5 ppm by 2022

10 Random survey: 3-MCPDE content in cooking oil samples from retail shops in Malaysia (data from 2016) All Edible Oils contain 3-MCPDE as the outcome from the process conditions The level differs from one oil to another.

11 Should we be worried about 3-MCPDE & GE? What s important is the sum of our actions. EFSA report has made some people all worked up about oil, BUT it s not fair to assign blame over our total health to one ingredient. The reality is that most people are no eating properly, not enough fruits, vegetables and whole grains. We need to evaluate our total dietary intakes and lifestyles. MODERATION IS KEY TO EVERYTHING

12 MILL Presentation Outline 1.Should we be worried about 3-MCPDE & GE? REFINERY 2.Update on industrial trial and grant allocation 3. What is next on the horizon?

13 Random Survey of total chlorine content from 2015 to 2018 (in ppm) & effect of total chlorine on 3-MCPD Palm oil products Crude palm oil to 2018 (n = 118) 1.56 to to 2016 (n = 104) 1.53 to Total Chlorine Content, mg/kg Soon Huat Tiong (2018)

14 Potential Sources of Chlorine from Milling Process Water from authority Treated water Fresh fruit bunch (EFB) Sterilization Stripping Digestion Pressing Screening Clarification Sterilizer condensate Empty fruit bunch (EFB) Kernel Pressed fibre Dirt Purifier Sterilizer condensate pit EFB oil Pressed fibre oil Water Washing of CPO RECOVERED OIL SLUDGE OIL SLUDGE PIT Vacuum drying Potential source of Chlorine Washed Crude palm oil (CPO) CPO Holding Tank

15 Effect of washing on total chlorine in CPO Process stages Parameters (ppm) 2-MCPDE 3-MCPDE GE Total chlorine CPO ND ND ND (± 0.266) Washed CPO ND ND ND (± 0.075) Removal of Total Chorine ~ 87%

16 Reduction of GE after the Refinery Process Refining process Washed CPO Degumming Bleaching Deodorization RBD Palm Oil Reduced 3-MCPDE Fractionation Process RBD Palm Olein RBD Palm Stearin Deodorization RBD Palm Oil Bleaching POST REFININHG for reduction of GE

17 3-MCPDE & GE: Industrial trials at Refinery Process flows Parameters (ppm) 2-MCPDE 3-MCPDE GE Refining Degumming ND ND ND Bleaching ND (± 0.025) < 0.05 Deodorisation (Refined palm oil) (± 0.043) (± 0.052) (± 0.228) Post refining Bleaching (± 0.013) 1.21 (± 0.009) (± 0.078) Deodorisation (Post-refined palm oil) (± 0.097) (± 0.219) (± 0.071) Fractionation Post refined palm olein (± 0.002) (± 0.017) (± 0.058) Post refined palm stearin (± 0.006) (± 0.006) (± 0.002)

18 Current Status on the Industrial Trial The Malaysian Government has allocated fund to assist the industry to reduce the formation of 3-MCPD esters and glycidol esters in refined palm oil Industrial trials will be carried out in collaboration with selected palm oil mills, refineries and technology providers 13 7 MILLS REFINERIES 20 sites had been identified for the industrial trial

19 Grant Allocation for 3-MCPDE & GE Total Grant of RM 50 Millions (mills, refineries & equipment for analysis of 3-MCPDE, GE & Total Chlorine) Matching grant basis all committed 13 companies had signed & stamped the agreements. 5 are pending & 2 are still negotiating the agreement. Waiting for the outcome of new budget ( ) Pending RM 35 millions.

20 Location of Mills and Refineries for Industrial Trial

21 Technology Providers for Industrial Trial Technology Providers Selected by Mills and Refineries Sector GEA Westfalia Lipochem / MPOB Alfa Laval Desmet Ballestra Sumwin Mills Refineries Total

22 Timeline for the Mitigation of 3-MCPDE and GE in Palm Oil Products No Activities Signing of MOU with selected mills, refineries and technology providers (First Group) Signing of MOU with selected mills, refineries and technology providers (Second Group) J F M A M J J A S O N D Q1 Q2 Ordering, delivery and installation of 3. new technologies/facilities at mills and refineries 4. Industrial trial 5. Disbursement of grant Evaluation of data derived from the various technologies Establishment of Codes of Practice (CoP) and maximum level Launch of CoP for the mitigation of formation of 3-MCPD esters and glycidyl esters Proposal and adoption of the technology by industry

23 Presentation Outline 1.Should we be worried about 3-MCPDE & GE? 2.Update on industrial trial and grant allocation 3. What is next on the horizon?

24 QUALITY OF CPO

25 CPO trading specification No. Parameters Current Limit Proposed Limit 1 FFA (max) 5.0 % 2 Moisture & Impurities (%) 0.25 max 3 DOBI (min) Phosphorus (P) (max) - 5 Iron (Fe) (max) 5.0 ppm* 6 Chlorine (Cl) (max) - 7 DAG (max) - *Codex Stan

26 M&I (%) Moisture and Impurities content in CPO State

27 Random Survey of FFA: FFA Content (%) Codex Stan: 4.56 % max MS 814:2007: 5 % max Mean: Std. Dev: N: 949

28 FFA (%) Free Fatty Acid content in CPO ( ) State

29 25 Phosphorus Content in CPO (ppm) Random Survey of P Content in CPO,

30 Phosphorus (ppm) Phosphorus content in CPO ( ) State

31 Random Survey for Iron (Fe) Content in CPO, Fe Content (ppm) Codex Stan: 5.0 ppm max MS 814:2007: not stated Mean: Std. Dev: 5.06 N: 236

32 Fe (ppm) Iron content in CPO ( ) State

33 Effect of unripe FFB on chlorophyll content and DOBI Source: Tan, YA; Chong, CL and Low, KS (1997). Crude palm oil characteristics and chlorophyll content. J. Sci. Food Agric, 75,

34 CPO Quality: sharing of focus group discussion CPO Quality is crucial in addressing the 3-MCPD & GE issues Very Poor Excellent

35 Next Step Propose to revise current CPO specifications REVISION OF CPO QUALITY Stringent level of FFA Inclusion of total Chlorine, Phosphate & Iron 1 2 First Meeting with PORAM / 2 nd Meeting in Sept Meeting stakeholders in the oil palm industry MPOB will coordinate with relevant stakeholders and work together with industry members to improve the quality of palm oil 3 Meeting with SIRIM & Dept. of Std. Malaysia 4 Finalize CPO spec

36 Conclusion: 1. Quality of feed stock (CPO) is critical in addressing 3-MCPDE & GE. 2. Quality of palm oil products along the supply chain is our responsibility 3. Technology to mitigate the formation of 3-MCPDE & GE must be cost effective & practical 4. The final refined oil must be cost effective and affordable to the consumers 5. The level of 3-MCPDE will be proposed based on industrial trial 6. Continue to engage relevant stakeholders

37 Thank You Rosidah Radzian

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