Golden Agri-Resources (GAR) has published a time-bound plan to achieve 100% traceability for all of the palm oil purchased and processed by the company by 2020, the company announced on 26 April.
It said the move built on the mapping of its entire supply chain to 489 mills which supply crude palm oil (CPO) and palm kernels to its processing facilities in eight different locations in Indonesia, GAR announced earlier in February.
GAR’s plan is comprised of two phases. The first phase will establish traceability to plantation for the 44 mills owned directly by GAR, which accounts for approximately 40% of its total palm oil supply. This will involve tracing fresh fruit bunch (FFB) purchased by those mills from independent traders and smallholders, which account for 10% of the supply to GAR mills. The remaining 90% of FFB supply comes from known sources such as GAR’s own estates and plasma smallholders. GAR aims to complete this phase by the end of 2017.
The second phase, which will run concurrently, is to achieve traceability to plantation for the independent third-party mills that supply GAR. This process is expected to be completed by the end of 2020.
GAR said it would kick off a pilot phase involving a GAR-owned mill and an independent mill and use the lessons learnt to replicate the process with other mills.
“This work will be focused on tracing smallholders directly and via intermediaries through chain of custody documentation and verification. The engagement will also help identify those suppliers who need the most support in strengthening their social and environmental practices.”
“The journey will require the involvement of thousands of farmers but with the support of our partners, we have set a goal of 2020 to realise our ambition,” said Agus Purnomo, managing director for sustainability and strategic stakeholder engagement at GAR.
GAR is one of the world’s leading palm oil plantation companies, with a total planted area of 484,221ha (including smallholders) as at 30 September 2015, located in Indonesia.
It is also a significant buyer of CPO and palm kernel for processing, procuring over 7M tonnes of CPO and PK from independent and GAR-owned mills in 2015.
In Indonesia, its main activities include cultivating and harvesting of oil palm trees; processing of fresh fruit bunch into CPO and palm kernel oil; merchandising and refining CPO into value-added products such as cooking oil, margarine and shortening. It also has operations in China and India including a deep-sea port, oilseed crushing plants, production capabilities for refined edible oil products as well as other food products such as noodles.