Our Palm Products Standard requires that all vendors of palm products within Fonterra’s supply chain are publicly committed to policies that give equivalent effect to “No Deforestation, No Peatland Development, and No Exploitation” and have business processes in place to enact these commitments. For more information, see:
Palm oil is a vegetable oil widely used by food manufacturers globally across an extensive range of products. It is used in some products to enhance texture and to bond (emulsify) the ingredients or to provide supplementary fats.
As with all inputs into our supply chain, 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 through the Green Palm™ scheme. Green Palm™ is endorsed by the Roundtable Sustainable Palm Oil (RSPO) and Fonterra is an RSPO member.
In 2016 calendar year, Fonterra procured 15,134MT of palm oil ingredients, all of which were from RSPO-certified sources:
2.7 percent was from segregated sources where it is kept separate from ordinary palm oil throughout the supply chain
57.0 percent was from ‘mass balance’ sources which are mixed with ordinary palm oil throughout the supply chain
40.3 percent was from ‘book and claim’ sources, where the supply chain is not monitored but credits are purchased from RSPO-certified growers
As part of the commitments outlined in the Fonterra Palm Products Standard, Fonterra will move towards sourcing segregated supply palm oil from credible organisations with an aim of 100 percent segregated supply by the end of 2018.
All Fonterra Brands New Zealand products fully comply with Australia, New Zealand and international food safety standards.