04/11/2009 (Business Green) - In a major coup for the campaign to promote adoption of sustainably certified palm oil, Europe's biggest biscuit manufacturer United Biscuits has this week signed a deal to purchase certified palm oil from New Britain Palm Oil for a minimum of two years.

Studies by the WWF have shown that increased demand for palm oil for use in consumer products and biofuels is leading to severe deforestation in countries such as Malaysia and Indonesia, where palm oil plantations have been found to contribute to illegal logging.

The Roundtable on Sustainable Palm Oil (RSPO) was formed in 2004 to establish stringent criteria for certifying palm oil that is produced in line with environmental standards and does not contribute to illegal forest clearance.

But many retailers have shunned the more expensive palm oil certified by the RSPO, with green group WWF reporting last week that only 10 out of the 59 major retailers and manufacturers surveyed in its latest industry report have lived up to commitments to buy sustainable palm oil.

The lack of demand has resulted in only 19 per cent of the one million tonnes of certified sustainable palm oil being purchased, and has reportedly prompted some producers to mix sustainably produced oils with non-sustainable oils to make it more affordable.

United Biscuits, which produces many high-profile brands including Jaffa Cakes, McVitie's biscuits and KP nuts, is among the first food manufacturers to secure a supply of sustainably certified palm oil that has been checked throughout the supply chain to ensure that the oil is from well-managed plantations.

Dr Simon Roulston, oils sourcing manager for United Biscuits, said the company's goal was to ensure that by the end of 2011 all its palm oil is certified as sustainable and delivered through supply chains that are fully segregated from non-certified palm oil. "United Biscuits has a clear goal to only use segregated, sustainable palm oil so that we can be sure that the palm oil in our products is the oil from the sustainable plantations," he said.

He added that since 2005, United Biscuits has also reduced the amount of palm oil used in its products by more than 40 per cent.

Alan Chaytor, executive director of New Britain Palm Oil, said supply deals with large firms such as United Biscuits would help drive down the cost of sustainable palm oil. "United Biscuits has shown real leadership by taking a major step to source segregated, traceable, certified sustainable palm oil here and now, and not making a distant commitment," he said.

New Britain Palm Oil sources most of its palm oil from Papua New Guinea and is fully certified by the RSPO principles.

Adam Harrison, senior policy officer covering palm oil at the WWF, welcomed the agreement and urged more firms to follow United Biscuits' lead.

"Unsustainable palm oil is a direct threat to species such as the orang-utan and the Sumatran tiger, rhino and elephant and forest loss is also a major contributor to climate change," he said. "Sourcing palm oil from RSPO-certified sources is the most credible way for companies to ensure that they are not adding to these global problems."