Palm oil major completes mapping of its entire supply chain

By RJ Whitehead

- Last updated on GMT

Related tags: Palm oil

Palm oil major completes mapping of its entire supply chain
Having mapped the Indonesian palm oil supply chain for the last two years, the world’s second biggest oil palm plantation company, Golden Agri-Resources, says it can now trace its annual supply of more than 7m tonnes of palm oil back to 489 individual mills.

By being able to track its independent supply chain, GAR believes it can more effectively improve the operations of suppliers that are not part of its own, controlled network. 

It says the information will also be offered to its customers so they can assess the environmental impact of the palm oil they purchase.

We see a clear industry trend where buyers want more information on the impact of the palm oil they purchase​,” said Paul Hickman, GAR’s head of palm oil trading. 

If we can trace the oil back to its source we can also engage more effectively with suppliers and share what we have learned in our own operations to help them improve their environmental and social practices​.”

The mapping project began in February 2014 with the support of the Forest Trust in a bid to extend its sustainability process to the company’s entire supply chain.

In addition to buying palm kernels and crude palm oil from independent mils for processing at its eight plants in Indonesia, GAR is a significant producer in its own right, and cultivates more than 480,000 hectares of plantation either directly or through its network of smallholders.

Through this model, the company says it has significant experience in improving the yields of these growers and managing the environmental impact of palm oil.

Related topics: Business, South East Asia, Supply chain

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