MARKET DEVELOPMENT
Traceable Palm Oil Certificates
Traceable Palm Oil Certificates
17/11/2015 (Confectionery Production) - GreenPalm will once again be sponsoring and exhibiting at RT13, the annual meeting of the Roundtable on Sustainable Palm Oil (RSPO), in Kuala Lumpur from 16 to 19 November.
GreenPalm, which enables every palm producer, including smallholders, to benefit from international demand for sustainable palm oil, will be updating conference attendees on traceability work, which will ultimately allow every certificate purchased to be traced back to the certified mill or grower that produced the palm oil, palm kernel oil or palm kernel expeller.
In addition, GreenPalm’s off market deal facility enables buyers to choose and negotiate directly with a certified mill or grower of their choice.
The GreenPalm, or Book & Claim, option remains the most inclusive supply route, enabling the sustainable palm oil movement to involve independent smallholders and producers without a route to export, or those whose product is sold in markets where there is zero demand for certified material. It is estimated that up to 40 per cent of the world’s palm oil producers fall into this category.
The call for all manufacturers and retailers to aim for a 100 per cent segregated physical supply of certified palm would exclude this large proportion of the world’s palm producers, who without a market for sustainable product would be unable to meet the ongoing costs of certification.
GreenPalm executive Simon Chrismas says the principles behind the system are the same as those of green energy tariffs designed to support the growth of renewable energy, but in practice will go a step further in offering traceability back to the supplier.
He says: “As a consumer or business you have supply chain options. You can sign up to a green electricity tariff which supports those energy companies that are investing in clean, renewable energy sources, such as wind, solar or tidal power. The energy you receive into your home or business hasn’t changed, but the clean energy is consumed somewhere on the power grid. Alternatively, you could decide to install solar panels on your roof, directly feeding clean energy into your business. A combination of the two would achieve 100 per cent green energy sourcing!
“The supply chain options available for certified palm are the same. GreenPalm is helping to drive industry-wide change to help us reach a tipping point in sustainable palm production globally. The same can be said for green tariffs in the energy industry.
“Where these industries differ is for palm oil we are talking about millions of smallholders, whose livelihoods depend on oil palm farming, and small, independent mills, who give an income to entire communities. Gaining and maintaining certification is costly, and if there is no more money to be earned as a result, it is commercially unviable for many producers.”
GreenPalm general manager Bob Norman says: “If we’re going to achieve true global palm oil sustainability, then every manufacturer, retailer and grower has to play their part. GreenPalm is the only supply chain option that allows manufacturers and retailers to directly support sustainable growers at the source, encouraging independent smallholders who sell locally to adopt sustainable practices.”
GreenPalm, which enables every palm producer, including smallholders, to benefit from international demand for sustainable palm oil, will be updating conference attendees on traceability work, which will ultimately allow every certificate purchased to be traced back to the certified mill or grower that produced the palm oil, palm kernel oil or palm kernel expeller.
In addition, GreenPalm’s off market deal facility enables buyers to choose and negotiate directly with a certified mill or grower of their choice.
The GreenPalm, or Book & Claim, option remains the most inclusive supply route, enabling the sustainable palm oil movement to involve independent smallholders and producers without a route to export, or those whose product is sold in markets where there is zero demand for certified material. It is estimated that up to 40 per cent of the world’s palm oil producers fall into this category.
The call for all manufacturers and retailers to aim for a 100 per cent segregated physical supply of certified palm would exclude this large proportion of the world’s palm producers, who without a market for sustainable product would be unable to meet the ongoing costs of certification.
GreenPalm executive Simon Chrismas says the principles behind the system are the same as those of green energy tariffs designed to support the growth of renewable energy, but in practice will go a step further in offering traceability back to the supplier.
He says: “As a consumer or business you have supply chain options. You can sign up to a green electricity tariff which supports those energy companies that are investing in clean, renewable energy sources, such as wind, solar or tidal power. The energy you receive into your home or business hasn’t changed, but the clean energy is consumed somewhere on the power grid. Alternatively, you could decide to install solar panels on your roof, directly feeding clean energy into your business. A combination of the two would achieve 100 per cent green energy sourcing!
“The supply chain options available for certified palm are the same. GreenPalm is helping to drive industry-wide change to help us reach a tipping point in sustainable palm production globally. The same can be said for green tariffs in the energy industry.
“Where these industries differ is for palm oil we are talking about millions of smallholders, whose livelihoods depend on oil palm farming, and small, independent mills, who give an income to entire communities. Gaining and maintaining certification is costly, and if there is no more money to be earned as a result, it is commercially unviable for many producers.”
GreenPalm general manager Bob Norman says: “If we’re going to achieve true global palm oil sustainability, then every manufacturer, retailer and grower has to play their part. GreenPalm is the only supply chain option that allows manufacturers and retailers to directly support sustainable growers at the source, encouraging independent smallholders who sell locally to adopt sustainable practices.”