The world’s second-largest palm oil plantation company, Golden Agri-Resources (GAR) has completed the mapping of its supply chain back to the 489 individual mills, it announced on 25 February.
It knows the locations and other relevant details of the 489 mills, which supply CPO and palm kernels (PK) to its eight processing facilities in Indonesia.
GAR extended its sustainability policy to its entire supply chain in February 2014.
The company said it will now be better able to support its independent suppliers as they in turn seek to adopt sustainable practices.
Paul Hickman, head of global vegetable oils and oilseeds trading at GAR said, “buyers want more information on the impact of the palm oil they purchase. If we can trace the oil back to its source we can engage for effectively with the suppliers and share what we have learned in our own operations to help them improve their environmental and social practices”.
GAR has more than 480,000ha of plantation managed directly through its plasma smallholders, and is a significant buyer of CPO and PK for processing.
In 2015 the company procured more than 7M tonnes of CPO and PK from independent and GAR-owned mills.