Golden Agri-Resources says 62% of palm oil is fully traceable

Will Green is news editor of Supply Management
7 January 2020

Palm oil company Golden Agri-Resources (GAR) has announced more than 80% of suppliers have achieved full traceability to the plantation.

GAR, which uses palm oil from a combination of mills it owns and third-party suppliers, said it was on track to achieve a fully traceable palm supply chain by the end of 2020. Currently 62% of its palm oil is fully traceable.

Singapore-listed GAR achieved 100% traceability to the plantation (TTP) for its own mills in 2017 and has been working with suppliers to help them achieve the same goal.

GAR sources from 46 self-owned mills, with a capacity of 13.3m tonnes per year, and from 403 third-party mills. The mills in turn source from plantations, brokers and thousands of smallholders. In 2015 the company was able to map its entire supply chain to the mill and has been working to extend this to the plantation and smallholder level.

“TTP offers buyers certainty as to exactly where and how the palm oil was grown,” said GAR.

“The TTP engagement process also helps to transform the supply chain by helping suppliers including smallholders to adopt and improve responsible practices. It also boosts smallholder livelihoods by increasing their access to markets.”

GAR had revenues of $7.2bn in 2018 and profits before tax of $573m, down 14% on 2017 due to lower palm oil prices, which averaged $565 a tonne in 2018 and $682 in 2017.

Agnus Purnomo, managing director sustainability and strategic stakeholder engagement, said: “The programme focuses on encouraging and enabling suppliers to implement traceability in their operational processes.

“We introduce them to our partner, Koltiva [an agricultural tech company], to provide suppliers with in-depth knowledge and information on the process of supply chain mapping and how to use the app and software to accurately verify a product’s source. Koltiva will then work closely with the suppliers to map their supply chain.”

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