It is used in hundreds of products by a wide range of companies.
The majority of the world’s palm oil comes from South East Asia. Palm products are raising concerns, because of the increasing deforestation of indigenous forest in this region, which is being converted to plantations for agriculture products, like palm oil. Concerns include environmental and social issues arising from deforestation, abuse of worker rights and the impact of those on local communities.
We believe that advocacy and helping instill practices and structure in the industry is the best approach to create lasting change. Simply banning some agricultural products, will likely mean production will shift to other agricultural commodities, perhaps with additional risks. With annother 1 billion people in the world by 2030, we need to transform food production to deliver sustainable nutrition. We need to make sure food production is efficient and does not drive further deforestation or environmental degradation, but in fact, helps protect and restore ecosystems.
Achieving change will help the tens of thousands of people involved in the industry as well as the environment. Part of our approach includes collaboration with similar-minded organisations and NGOs who are working on the ground. This includes transparency of our supply chain and traceability of the product we use.
We have been active in palm product sustainability since 2009 and have done the following:
Been an RSPO member since 2009. The RSPO is committed to making sustainable palm oil the norm.
Established a Palm Product Standard in 2016 to ensure the products we use meet sustainability best practices. All our vendors of palm products must publicly commit to “No Deforestation, No Peatland Development, and No Exploitation” and have business processes in place to meet compliance.
Fonterra has worked with The Forest Trust (TFT), a leading NGO supporting sustainability transformation in the palm industry, to evaluate performance of our supply chain and compliance with our standard. So far, we have confirmed 96.7 percent traceability to mill – knowing the source.
Palm oil is used for a variety of reasons including to enhance texture and to bond (emulsify) ingredients or to provide supplementary fats. Palm Kernel Expeller (PKE) is a by-product of the palm oil industry and is used a supplementary feed for cows, such as during dry periods when grass growth is lower.
Sustainable palm oil
Fonterra supports the production of certified sustainable palm oil
Palm oil and palm kernel oil are vegetable oils derived from palm fruit which are widely used by food manufacturers globally in an extensive range of products. Both are used by Fonterra as an ingredient in some products to enhance texture and to bond (emulsify) the ingredients, or to provide supplementary fats.
Sustainability is a priority for us, and this includes being careful about where we source our ingredients. We support the production of certified sustainable palm oil and Fonterra is a member of the Roundtable on Sustainable Palm Oil (RSPO).
Fonterra’s provides details of palm oil sustainability performance in its Annual RSPO report available here.
Palm Kernel Expeller (PKE)
We have been working closely with The Forest Trust and our suppliers to increase traceability and transparency, as well as support sustainability transformation in the palm sector
Palm oil and palm kernel oil are vegetable oils derived from palm fruit which are widely used by food manufacturers globally in an extensive range of products. Both are used by Fonterra as an ingredient in some products to enhance texture and to bond (emulsify) the ingredients, or to provide supplementary fats.
Sustainability is a priority for us, and this includes being careful about where we source our ingredients. We support the production of certified sustainable palm oil and Fonterra is a member of the Roundtable on Sustainable Palm Oil (RSPO).
Fonterra’s provides details of palm oil sustainability performance in its Annual RSPO report available here.