Bunge and Cargill Refuse to Cut Ties with Under Fire Malaysian Palm Oil Trader

636016719150580836063.jpg

16 Jun 2016 --- Bunge and Cargill are to continue trading with a leading Malaysian palm oil trader and producer, despite the company facing allegations that its subsidiaries helped deforestation in Indonesia and having its sustainability certificates suspended, according to a report.

According to the Financial Times, the two agricultural commodity traders are to continue trading with IOI Group, despite it being rocked by allegations which have led Kellogg and Mars amongst others to sever ties with the palm oil trader.
 
IOI Group was one of the founding members of the Roundtable on Sustainable Palm Oil, but it was suspended in March this year over its operations in the Ketapang area of Indonesian Borneo, where three of its subsidiaries are alleged to have violated a raft of RSPO standards meant to prevent rainforest destruction and social conflict, and some laws.
 
Bunge and Cargill have both been advocates of trying to halt deforestation and made pledges to help eradicate it.
 
However, the two companies argue that by continuing to act as trading partners to IOI Group, they could help enact change at IOI Group.
 
Speaking to the FT, Bunge said it hoped that it could help change IOI's sustainability policies.
 
Cargill said: “We’ve had a longstanding policy across our supply chains . . . to stick with suppliers as much as we can to help with the process of improving standards.”

Related Articles

Business News

Fermentalg bolsters position by raising capital and issuing new shares

23 Oct 2017 --- French specialist in microalgae Fermentalg is celebrating raising its capital increase by €12.6 million (US$14.8 million) to accelerate its growth in natural food colorings, nutrition and health. The increase will give the company the additional means to finance its development, notably regarding the partnership signed with DIC Corporation.

Food Ingredients News

PureCircle in stevia plant genome breakthrough

20 Oct 2017 --- For the first time scientists have completed the sequencing of the stevia plant genome unveiling major breakthroughs in research. Scientists from producer and innovator of stevia sweeteners for the global beverage and food industry, PureCircle, have found a way to map the genetic makeup of the stevia plant, in what they claim is a pioneering move. The mapping will provide an in-depth understanding of how the calorie-free sugar substitute derives its characteristic sweetness. 

Business News

UK signs up to Dairy Declaration of Rotterdam

20 Oct 2017 --- The UK dairy industry has endorsed a declaration to promote the sustainability of dairy systems around the world. The Dairy Declaration of Rotterdam, a unique partnership between the International Dairy Federation (IDF) and the Food and Agricultural Organization of the United Nations (FAO) signals a recognition of the dairy sector’s commitment towards feeding the world with safe, nutritious and sustainable products.

Business News

Firmenich commits to 100 percent sustainable juice

20 Oct 2017 --- Firmenich has signed the Sustainable Juice Covenant, joining forces with leading European beverage and food companies to commit to creating 100 percent sustainable juice and puree by 2030. Under the coordination of IDH: the Sustainable Trade Initiative, Firmenich, Döhler, FrieslandCampina Riedel, Refresco and Verbruggen Juice Trading Sustainable Products b.v., have agreed to target 100 percent verified sustainable sourcing for their juices within the next decade.

Business News

Nestle reports slight decline in nine-month sales for 2017

19 Oct 2017 --- Total reported sales for Nestlé decreased by 0.4 percent to CHF 65.3 billion (US$66.6 billion), reduced by net divestments of 2.6 percent (mainly due to the creation of the Froneri joint venture) and negative foreign exchange effects of 0.4 percent. Organic growth was 0.8 percent in developed markets and 5.1 percent in emerging markets.

More Articles