Palm Kernel Expeller (PKE)

Dairy farmers use PKE as supplementary feed


New Zealand dairy farmers use PKE – a waste product from palm oil production – as supplementary feed. PKE is a low value by-product of the palm industry and is not the main reason palm fruit is harvested. Most of the value of palm oil production comes from the oil.

PKE plays a role in feeding cows, including during adverse weather such as droughts. Pasture grass is, and will remain, the main source of feed in New Zealand – it’s one of our competitive advantages.

Since 2016, we have been working with The Forest Trust (TFT) to evaluate the performance of our palm products supply chain and compliance with our Standard.

PKE sold by Fonterra’s Farm Source stores in New Zealand is bought through International Nutritionals Ltd (INL), who import it from a single source, Wilmar International. Wilmar have a "no-deforestation, no-exploitation, no peat” policy, respect designated conservation areas and employ wildlife protection experts.

Working with our vendors, we have confirmed 96.7 percent traceability to mill, and 13.1 percent traceability to plantation for PKE for the year to June 2017.

Fonterra believes that protecting New Zealand from foreign bio-security risks is of utmost importance. We fully support the Ministry for Primary Industries (MPI) ongoing actions to strengthen New Zealand’s biosecurity systems.

The Wilmar processing plants are located in gated industrial complexes beside export ports and are ISO9002 certified. The PKE is mechanically processed under high temperatures and shipped within a month of production. As an additional precaution all PKE is fumigated prior to shipment and there are several physical inspections on arrival.