Wed 15th June 2016
Availability of RSPO Certified Sustainable Palm Oil drops by 18.5%
The combined result of Felda’s decision to voluntarily withdraw its own RSPO (Roundtable on Sustainable Palm Oil) certification, and IOI’s certification suspension by the RSPO, will be to reduce the global supply of certified sustainable palm oil (CSPO) by 2.5 million tonnes – 18.5% of the total.
This is likely to be good news for those with CSPO to sell, including those with GreenPalm certificates. However, buyers would be well advised to consider their on-going requirements and act quickly to secure the CSPO or certificates they need, before supply is squeezed further.
Although Felda does not sell directly into Europe, it contributes to a large proportion of the certified sustainable palm product available globally. The impact of IOI’s certification suspension, however, will be felt throughout the European and US supply chains, particularly in relation to certified sustainable palm kernel oil.
Though the two cases are different, news of the ending of IOI and Felda’s RSPO certification has thrown a spotlight on the fragility of physical supply. At the same time, it demonstrates the importance of building resilient supply chains, which are capable of adapting to change and maintaining continuity.
At GreenPalm, we shall watch Felda’s progress with interest, particularly as the emphasis is on inclusivity for smallholders, who make up about 30% of the group’s production, according to the business.
One of GreenPalm’s key advantages is its inclusivity, enabling all certified producers and buyers of all kinds of palm products to play a role in the journey towards a sustainable palm industry.