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.
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).
We believe that advocacy and helping instil 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 another one 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, this includes working towards transparency of the products we use in our operations and supply chains.
We have been active in palm product (including palm oil, palm stearin, palm kernel oil and palm olein) sustainability since 2009.
Fonterra provides details of palm oil sustainability performance in its Annual RSPO report available here.
Palm Kernel Expeller is a by-product of the palm crop. Originally treated as waste, it is now used as an effective supplementary feed for animals, including dairy cows in New Zealand when there is less grass growth.
New Zealand dairy cows are primarily fed grass, with some farmers choosing to include supplementary feed such as PKE to help support cows’ nutrition.
Fonterra is committed to the elimination of deforestation across our operations and supply chains. Our focus is on influencing primary palm production through the sourcing of deforestation free and segregated palm oil which will in turn increase the availability of sustainably produced PKE.
Wilmar Policy
Wilmar mill lists
Wilmar Grievance page process updates
Agrifeeds PKE supply chain