People, Environment

Top Palm Oil Supplier Dropped

Top Palm Oil Supplier DroppedTop Palm Oil Supplier Dropped

Three of the world’s top food and consumer goods companies have dropped a leading Malaysian palm oil producer because of deforestation in its plantations in Indonesia. Unilever, which owns over 400 brands including Dove, announced last week that it has begun cancelling its supplier agreements with palm oil producer and trader IOI Group over evidence of bad environmental practices in Indonesia. IOI is Malaysia’s No. 2 palm oil company by production and a top 10-listed global palm oil firm. Unilever is one of the world’s top buyers of palm and palm kernel oil and refined products, AsiaOne reported. American food giants Mars and Kellogg’s have also announced that they are in the process of removing IOI as a supplier by progressively dropping contracts with IOI’s refining subsidiary IOI Loders Croklaan, which has refineries in Malaysia and Holland. Palm and palm kernel oil are used in most common foods and health and beauty products. Major food and consumer product firms have pledged to ensure that their supplies are sourced from companies that do not contribute to the destruction of rainforests, fires or conflicts with local villagers, and have been applying greater pressure on plantation companies to comply.