Supply continues to grow…

In recent weeks three further plantations – Kuala Lumpur Kepong Bhd, Hargy Oil Palm Ltd and PT PP London Sumatra Indonesia Tbk – have been independently audited and found to be in full compliance with the RSPO’s challenging and rigorous sustainability standards. Congratulations to them as well as to the RSPO for their hard work and dedication.

As a result of their efforts, food manufacturers and retailers now have access to ample supplies of RSPO certified crude palm oil. Nevertheless, the take up is frustratingly slow. Disappointing perhaps, but fairly easy to understand why…

Costly segregation…

Manufacturers who wish to use RSPO certified palm oil in their products must first invest in segregated systems and processes to receive, store and use that oil. So, having paid a substantial premium (of perhaps 30 or 40% more per tonne) for certified oil, the business must then invest yet more to keep that certified oil separate. The premium per tonne will reduce over time as supply increases, but the costs of segregation will remain.

Nevertheless, for many, the sums will add up and RSPO certified material will be the right answer. But for potentially over 70% of end users who use palm oil derivatives rather than refined palm oil, it’s unlikely to be for some time. This is due to the prohibitive additional cost of segregated derivative processing, which will prevent RSPO certified derivatives being manufactured for the foreseeable future.

The GreenPalm solution…

The GreenPalm certificate trading programme overcomes these problems by bypassing the physical supply chain completely, thereby avoiding the additional costs of segregation.

By investing in GreenPalm certificates to cover their use of palm oil or palm oil derivatives or palm kernel oil, businesses can directly support the production of sustainable material and tell their customers that they are doing so.

And, since GreenPalm certificates are currently trading at just $24 each, this also represents an affordable solution. The latest market is shown on the homepage, So get in touch today to discuss whether GreenPalm is right for your business.

Frying tonight…

T Quality, one of the leading suppliers of frying oils to the British chip shop trade, has achieved first to market in their sector with a GreenPalm branded product – FryPure. Congratulations to all involved and sincere thanks for their support – which appears to have set a trend. More to follow in next month’s newsletter….

That’s all for now, thanks again for your interest in GreenPalm.

Bob Norman

Do feel free to contact me on +44 (0)1482 332013 or bob.norman@greenpalm.org for more information.

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