Cargill takes steps to meet growing demand for sustainable palm oil

Cargill has acquired the Poliplant Group, a move that will improve the company’s ability to meet increasing demand for traceable and sustainable palm oil, Cargill reported on its website. The acquisition was completed on Dec. 30, 2014.  

The new operations comprise approximately 50,000 hectares of contiguous, planted smallholder and company land adjacent to Cargill’s existing palm oil operations in West Kalimantan, Indonesia. 

For John Hartmann, chief executive officer of Cargill Tropical Palm Holdings Pte Ltd, the long-term success of the acquisition will require Cargill and its stakeholders to make a concerted effort to address deforestation and other environmental issues associated with the palm oil sector.

“Cargill’s oil palm plantations in West Kalimantan and South Sumatra have established strong track records in sustainable practices and operating to a strict code of conduct,” said Hartmann. “As we work towards RSPO certification for our new operations, our broader goal for a fully sustainable and transparent supply chain can only be accomplished with the support of multiple stakeholders.”

“We are firmly committed to collaborating with our customers, suppliers, NGO partners and local communities to bring Poliplant to its full potential, starting with the required HCV and HCS field assessments,” Hartmann added.

Cargill has enlisted the help of independent consulting firm Daemeter to perform a variety of social and environment-related tasks, including field assessments to identify High Conservation Value (HCV) and High Carbon Stock (HCS) land areas – critical steps towards ensuring no deforestation as pledged in its Sustainable Palm Oil Policy launched last July.

"To achieve sustainable production in Indonesia, it's vital for all stakeholders involved to work towards a common purpose,” said Gary Paoli, director of research and project development at Daemeter. “This process begins with transparency, and we applaud Cargill’s openness about our engagement to assist with HCS and HCV assessments in Poliplant.”

Cargill has long recognized the essential role of smallholders in the global palm oil supply chain. To ensure their inclusion at its new operations and to understand the needs of the local community, Cargill has partnered with Solidaridad, an international NGO specialized in building fair and sustainable supply chains.

“Agriculture remains one of the key economic activities in Indonesia, and it is important for smallholders to start adopting sustainable farming practices to preserve their future livelihoods,” said Hendry Yang, coordinator for palm oil, Solidaridad South and South East Asia. “Through our partnership with Cargill, we will focus on developing a long-term roadmap to help smallholders and local communities succeed and sustain a good livelihood for generations."