30/10/2009 (Greenwise) - The sustainable palm oil business received a boost today in the UK with the announcement that United Biscuits has signed a deal to source traceable and certified sustainable palm oil.

The leading branded snack firm has signed a two-year supply agreement with New Britain Palm Oil (NBPO), an industrial producer of palm oil. The deal is significant because it means for the first time, United Biscuits – behind such brands as McVitie’s, Jacob’s, Carr’s, KP and Mini Cheddars – will be able to ensure that most of its palm oil will be sourced from plantations legally certified to be growing sustainable palm.

Palm oil is used in many food products and other consumable goods, and the market for it is growing thanks to the low cost of palm oil compared with alternative sources of vegetable oil. However, unless sourced sustainably, its production is a major contributor to the destruction of the rainforest in countries such as Malaysia and Indonesia, where most of it is grown. A recent report by environmental group WWF, warns that the sustainable palm oil business is under threat because many food companies are still not buying certified sustainable palm oil. Its report showed that although the demand for palm oil that was certified to have come from sustainably managed plantations had increased, only 19 per cent of the one million tonnes of palm oil that has been certified to date has been sold.

United Biscuits said its deal with NBPO meant that by mid-2010 two-thirds of its palm oil would come from "segregated, traceable and certified sustainable 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," said Dr Simon Roulston, Oils Sourcing manager for United Biscuits. "This supply agreement with New Britain, which covers the majority of our oil, is a major step forward in achieving that goal."

The deal marks the first supply agreement signed for NBPO’s UK refinery in Liverpool, which is set to be operational by next April.

NBPO said the new refinery will have a dedicated supply source from certified sustainable plantations in West New Britain Province, Papua New Guinea. These are certified as conforming to the Roundtable on Sustainable Palm Oil’s Principles and Criteria on sustainability.

Alan Chaytor, executive director of NBPOL, said: "New Britain Palm Oil is delighted to have concluded this long-term supply agreement to supply segregated, traceable and certified sustainable palm oil to United Biscuits. The agreement represents a significant part of our capacity from our UK palm oil refinery."

United Biscuits said it aimed to have all its palm oil sourced sustainably by mid-2010 and on a segregated and sustainable basis from the end of 2011. It said it was also working to reduce the amount of palm oil it used in its products.

"Since 2005 we have achieved a 40 per cent reduction in palm oil," said Dr Roulston

Among its other efforts to become more sustainable, United Biscuits has set itself a target to achieve zero waste to landfill by 2010 and a 35 per cent cut in its UK carbon emissions by 2020.