FrieslandCampina uses Palm oil for various products and mainly its creamers, fat powders, toppings and sweetened condensed milk. Palm oil is used in many products, because of its functional benefits, like: crispiness and crunch, neutral taste and smell, smooth and creamy texture and excellent mouthfeel, Palm oil is also an alternative to transfat. Palm oil is a fruit and is originally from Africa, now mainly Malaysia & Indonesia (90%), West Africa, and South America. As of 2011, 100 percent of our Palm oil sourcing is RSPO Palm oil.
A Palm tree is up to 20 metres high and gives an all year round crop, with a peak between August and October. Palm oil trees need 30 months before the first harvest. The yield is the highest yield of all vegetable oils.
FrieslandCampina has established its sustainable Palm oil policy in 2010 and is committed to source 100 percent sustainable Palm oil as from 2011; not only in Europe but also in Asia and Africa. This policy includes palm oil, Palm oil fractions, palm kernel oil, palm kernel oil fractions and palm-based emulsifiers.
Our partners: Roundtable on Sustainable Palm oil (RSPO)
FrieslandCampina is a member of the Roundtable on Sustainable Palm oil since 2007. Together with palm oil farmers, industry and trade organisations as well as NGOs, FrieslandCampina contributes to making palm oil production sustainable. In this framework, FrieslandCampina works actively together with the World Wildlife Fund to support sustainable Palm oil production in relevant countries such as Indonesia and Malaysia.
The RSPO has been established in 2004 to promote the production and use of sustainable Palm oil for People, Planet and Prosperity and has strong support of World Wildlife Fund. Please click here for WWF’s position on Sustainable Palmoil.
Indonesia and Malaysia produce close to 90 percent of all palm oil in the world. Palm oil is an important part of the economy in these areas. The major drawbacks of the production of palm oil in these areas are both social issues (e.g. land ownership conflicts, workers’ rights and conditions and treatment of smallholders) and environmental issues such as rainforest, peatland conversions, climate change, and biodiversity loss. FrieslandCampina wants to further improve the sustainability of the production of agricultural raw materials and the preservation of the tropical rainforest and biodiversity. FrieslandCampina actively promotes the use of RSPO Palm oil and has won the Sustainable Palm Award 2012 from the Dutch Task Force Sustainable Palm oil. On WWF’s Palm oil Buyers Scorecard 2011 and 2013 good scores were given to the execution of the sustainable Palm oil policy of FrieslandCampina. Also, on the WWF’s Palm oil Scorecard 2016 good scores were given.
1. Responsible Sourcing
In 2018 FrieslandCampina used about 134,000 tonnes of palm-based products for its production of, amongst other things, creamers, fat powders, toppings and sweetened condensed milk. This is 100 percent RSPO Palm oil as of 2011.
There are different types of sustainable Sourced Palm oil:
- Identity Preserved: Sustainable Palm oil from a single identifiable certified source is kept separately from ordinary palm oil throughout supply chain.
- RSPO Segregated: Sustainable Palm oil from different certified sources is kept separate from ordinary Palm oil throughout supply chain.
- RSPO Mass Balance: Sustainable Palm oil from certified sources is mixed with ordinary palm oil throughout supply chain.
- RSPO Credits / Book & Claim: The supply chain is not monitored for the presence of sustainable Palm oil. Manufacturers and retailers can buy Credits from RSPO-certified growers, crushers and independent smallholders.
On the RSPO website you can read more on the Supply Chain of Palm oil and its types of Certification.
In 2018, FrieslandCampina sourced about 64 percent via the physical supply chain model Segregated (guaranteed to originate from approved and certified plantations) and 18 percent by the Mass Balance model. The remaining 18% volume is sourced via the Book & Claim model with certificates.
FrieslandCampina does report our volumes of 100 percent RSPO certified sustainable Palm oil on the RSPO website.
The use of Palm oil can be split into:
Palm oil (82% of 2018 volume) Palm Kernel oil (18% of 2018 volume)
2. Traceability of Palm Oil
As FrieslandCampina has a strong commitment towards more traceable and responsibly sourced supply chains, it will be demonstrating progress to ensure that sourcing of our ingredients achieve the best possible level of traceability. Traceability in the supply chain is a challenging and evolving task, and FrieslandCampina notes that full transparency is not always easy to achieve. Our ambition is to make this a journey of monitoring, assessing and making the necessary improvements in our supply chain over time to achieve our ambition.
Currently 82% of the Palm oil and Palm Kernel oil sourced globally can be traced back to a group of palm oil mills.
Our progress will be regularly maintained and reported. Please click here for the list of suppliers and mills and here for some key logo’s. It contains our Tier 1 suppliers’ names and a list of the mills that supply us further upstream in the palm oil supply chain, each listed with their country of origin. These suppliers and mills supply 91% of the total volume of palm oil FrieslandCampina sources annually.
3. Good living for the farmers
Smallholders account for 40% of the global Palm oil production. FrieslandCampina together with Olenex (please link to Olenex pdf) / Wilmar have launched a two-year smallholder support program (starting 2018) for small farmers and small growers of Palm oil in Colombia. The objective of the program is to empower smallholders and small growers to conduct responsible palm oil production, in line with the No Deforestation and No Exploitation commitment, to improve livelihoods, while taking care of nature.
WISSCo2 is the continuation of a series of successful training and knowledge enhancement programs that Wilmar and Olenex have been implementing in Latin America since 2016: WISSH and WISSCo1. Through WISSCo2, the partners seek to engage five mills from the north zone located in Cesar and Magdalena departments.
The five mills under the WISSCo2 program represent close to 10% of Colombia’s palm oil production, and 34% of the northern zone, which means close to 169.000 tons. As an integral part of WISSCo2 468 smallholders supplying the mills will be trained which accounts for close to 10,000 hectares planted.
Further information on the FrieslandCampina, Olenex and Wilmar partnership for smallholder support program in Colombia can be found here.
Please click here for the Q&A document of Sustainable Palm oil.