MARKET DEVELOPMENT
Fonterra Removes Uncertified Palm Oil From Supply Chain
Fonterra Removes Uncertified Palm Oil From Supply Chain
19/08/2016 (Business Review Australia) - New Zealand-based dairy company Fonterra has announced that it will be removing uncertified palm oil products from its supply chain by selling one third of the palm oil and palm kernel expeller (PKE) used in the country.
Fonterra’s new standards for sourcing will demand that buyers can only source palm oil that has been certified; it is also planning to collaborate with its suppliers to guarantee that its palm oil is fully traceable.
Fonterra director of social responsibility Carolyn Mortland said: “A lot of large suppliers have been trying to get traceability back to the mills that process the palm oil and PKE but if we can trace back to the plantation then you actually know who is supplying the palm products and what practices they are using on their plantation - whether they are using new land, how they are clearing land and where they are getting their palm products from."
"It is important to remember that imported supplementary feed like PKE still remains a relatively small part of total cow diet in New Zealand.”
Our sister publication, Business Review Middle East, explored Fonterra’s operations in the region and how the company was working to make its industry more sustainable.
Fonterra’s new standards for sourcing will demand that buyers can only source palm oil that has been certified; it is also planning to collaborate with its suppliers to guarantee that its palm oil is fully traceable.
Fonterra director of social responsibility Carolyn Mortland said: “A lot of large suppliers have been trying to get traceability back to the mills that process the palm oil and PKE but if we can trace back to the plantation then you actually know who is supplying the palm products and what practices they are using on their plantation - whether they are using new land, how they are clearing land and where they are getting their palm products from."
"It is important to remember that imported supplementary feed like PKE still remains a relatively small part of total cow diet in New Zealand.”
Our sister publication, Business Review Middle East, explored Fonterra’s operations in the region and how the company was working to make its industry more sustainable.