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Palm Oil Action Australia | May 27, 2017

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Cargill suspends ties with palm oil trader IOI

  • On August 19, 2016

ft.com
Cargill suspends ties with palm oil trader IOI
London

Cargill, the leading international agricultural trading house has suspended ties with IOI Group after the Malaysian palm oil producer and trader failed to publish a detailed plan on delivering sustainable palm oil.

Many of Cargill’s customers, such as Unilever and Nestle, had announced that they would cut ties with IOI after its sustainable palm oil certificates were suspended by the RSPO, an industry watchdog, writes Emiko Terazono .

Unlike many of its customers and peers, Cargill had not cut ties with IOI but had given the Malaysian company a July 15 deadline.

Cargill said:

The IOI Group has yet to deliver a responsible sourcing policy or a detailed sustainability implementation plan to meet our requirements. As a result, Cargill is suspending business by not entering into any new purchase contracts until IOI Group can meet our requirements in compliance with our sustainable palm oil policy.

Cargill’s move means that the bulk the leading agricultural traders have cut ties with IOI.

With south east Asia entering the season when illegal burning of forests increases, NGOs are on high alert.