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Indonesia\'s SMART In Talks To Resume Business With Unilever
calendar30-09-2011 | linkReuters | Share This Post:

30/09/2011 (Reuters) - Anglo-Dutch consumer goods giant Unilever (UNc.AS) is in talks to resume business with Sinar Mas Agro Resources and Technology (SMART) , the Indonesian palm oil firm said on Wednesday.

SMART, which runs the Indonesia palm oil operations of its Singapore-listed parent Golden Agri-Resources , was given a mixed score card last year in an independent environmental audit after Greenpeace accused the firm of clearing peat land and forests that sheltered endangered species.

Major palm oil consumers such as Unilever, Nestle and Burger King stopped buying from SMART because of environmental concerns.

"We are in an initial stage of discussion with Unilever to resume business," Daud Dharsono, chief executive officer of SMART, said in a statement. "As a vital part of the supply chain, we believe that we must collaborate with all stakeholders to find solutions for sustainable palm oil."

Earlier this month, Nestle , the world's biggest food group, also resumed palm oil purchases from SMART, showing that the palm oil firm's efforts to boost its green credentials by teaming up with a conservation group have paid off.

The palm oil producer said in February it would work with the government and a non-profit body, and Golden Agri then developed a Forest Conservation Policy (FCP) in collaboration with The Forest Trust (TFT), a non-profit organisation that seeks to promote green business methods. (Reporting by Michael Taylor; Editing by Jane Baird)