Tag Archive | Cargill

Indonesia’s Palm Oil Blues Spreading to Africa: Report

Hayat Indriatno | The Jakarta Globe

Major palm oil producers accused of destroying Indonesia’s forests and driving its iconic wildlife to the verge of extinction are now taking their practices to the relatively pristine forests of the Congo Basin, an environmental group has warned.

In its report “Seeds of Destruction” released this month, the Rainforest Foundation UK said there was “a real and growing risk that some of the serious, negative environmental and social impacts resulting from the rapid expansion of palm oil production in Indonesia and Malaysia, such as widespread deforestation, social conflict and dispossession, could be repeated in the Congo Basin.”

“This report shows that some of the same major players behind oil palm production in Southeast Asia [such as Sime Darby, Goodhope, Wilmar and FELDA] are now turning their attention to Africa,” RFUK said.

The report said the companies were turning to the Congo Basin region, which includes Cameroon, the Democratic Republic of Congo and the Republic of Congo, among others, because of lower land and labor costs and preferential access to the European Union market.

It warned that unless the African governments were fully aware of how these companies were operating in Indonesia and Malaysia, they could suffer from the same problems seen in Indonesia.

“Of the companies which have been identified as being behind specific developments, or are otherwise known to be seeking oil palm land in the Congo Basin, three — Cargill, Sime Darby and Wilmar — have been found in the past to be involved in illegal and destructive oil palm development in Indonesia,” the report said, citing independent claims made by the environmental groups Rainforest Action Network, Greenpeace and AidEnvironment.

It added that the negative environmental and social impacts “typical of [palm oil] developments in Indonesia have already been well-documented at … Sime Darby’s concession in Liberia.”

RFUK listed the negative impacts as deforestation and loss of biodiversity, increased carbon emissions from the clearing of primary and peat forests, conflicts with indigenous residents over land rights, pollution of local water resources and poor working conditions for local laborers.

To avoid these problems, it recommended greater transparency in the palm oil contracts, ensuring respect for local communities and empowerment of smallholder farmers, among other measures.

The increased expansion into Africa by Southeast Asian palm oil firms grabbed headlines last month when farmers in Liberia denounced the “modern slavery” visited upon them by an Indonesian company, Golden Veroleum Liberia.

“The Indonesians came here for the first time in September 2010,” resident Benedict Manewah told AFP.

“They said, ‘We have a concession agreement, your president has sold it to us.’ Three months later they came back … and they started to destroy the properties, farmlands, crops, livestock and houses.”

Sime Darby, from Malaysia, was the subject of similar complaints in Liberia.

 

 

Advertisements

Cargill Admits Buying Palm Oil from Illegally Cleared Orangutan Habitat | RAN

Photo Courtesy of TheAnimalBook.co

Chelsea Matthews, RAN

Last week, Cargill admitted to doing business with a very dodgy plantation company in Central Kalimantan (Indonesian Borneo) that has illegally cleared thousands of hectares of orangutan habitat — and has even allegedly hired people to hunt down and kill orangutans.

Cargill admitted to Reuters that it bought at least one shipment of palm oil from PT Best in 2011, the holding group that owns the contested palm oil concession. It is likely Cargill also bought from them in the past and continues to do so today. In response to inquiries by Reuters’ journalist, Cargill said it will stop buying from the firm “if any illegality was proven.”

This is quite embarrassing for Cargill because the illegality is already publicly acknowledged by the Indonesian government after months of digesting a hard-hitting investigation by the Environmental Investigation Agency (EIA), and there is no doubt that thousands of hectares of orangutan habitat is already destroyed. EIA’s report, “Testing the Law”, documents how the 23,000 hectare (57,500 acre) concession was cleared and developed in violation of multiple Indonesian laws.

This is by no means the first time Cargill has been linked to egregious instances of deforestation and destruction of orangutan habitat. In recent months, RAN has highlighted Cargill’s supply chain connections to the destruction of the Tripa rainforest in Sumatra — one of the world’s most ecologically important rainforests and home to the critically endangered Sumatran orangutan. We have also been working to bring the urgent message about Cargill’s involvement in orangutan extinction to the company’s home town, Wayzata, Minnesota with a billboard, a robust print and online ad campaign, and thousands of publicly placed ads across the state. So far, Cargill has remained uncharacteristically silent, further suggesting it has something to hide.

This is yet another case in point that raises major red flags around Cargill’s commitment to what it calls a “100% sustainable supply chain.” Cargill says it “wants to play a leading role in working towards sustainable palm supply and use through the RSPO, and through our own actions”, going on to claim: “As such we have established a corporate sustainability commitment for our palm oil products.” Clearly, this commitment is not going far enough.

Here’s why more transparency is so clearly needed from the company: In the past, Cargill has said it has a “no-trade list” of companies it will not do business with. In 2009, Rainforest Action Network released a case study that documented illegal rainforest clearing by palm oil company Duta Palma on the lands of the Semunying Jaya community in Borneo. Social conflict continues today between the Semunying Jaya community and Duta Palma. Despite Cargill claiming that Duta Palma was on their “no-trade list,” how can consumers be sure Cargill is not sourcing from Duta Palma when, to this day, a no-trade list has yet to be made public?

As the largest importer of palm oil into the US, Cargill is using membership with the Roundtable on Sustainable Palm Oil (RSPO) as its only filter to keep controversial palm oil out of its supply chain. Without its own safeguards around deforestation, human rights and species and climate impacts, the palm oil giant cannot ensure its supply chain does not include palm oil from controversial plantation holders like the ones operating in Tripa and PT Best. Without supply chain safeguards, Cargill is taking a huge risk by claiming its supply chain is devoid of controversy when environmental groups continue to link the company’s supply chain to shameful practices.

Setting the Record Straight: Cargill and Tripa Forest Controversy

Written by Ashley Schaeffer

Although there are no major fires still tearing through the Tripa peat forest in Sumatra — the largest remaining Sumatran orangutan habitat in the world — updates from our allies on the ground tell us that Tripa is still gravely at risk. With one or two small fires still breaking out each day, combined with ongoing active forest clearing for palm oil plantations, the critically endangered orangutans depending on this forest for survival remain in danger.

Despite the international spotlight on Tripa since late March, there is still active clearing and building of more drainage canals going deep into primary forest.

I wish I could say that some of the largest players in the palm oil industry, such as Cargill, are doing everything in their power to ensure that controversial palm oil coming from these types of tragedies isn’t ending up in their supply chain (and our pantries), but that is definitely not the case.

RAN’s report, Truth and Consequences: Palm Oil Plantations Push Unique Orangutan Population to Brink of Extinction, points out that Cargill has no safeguards on its global palm oil supply chain, and that without such safeguards Cargill cannot ensure it is not contributing to egregious violations like the one underway in the Tripa peat forest of Indonesia.

Although Cargill is still misleading the public by releasing statements like the one from last week, titled, “Cargill Refutes Rainforest Action Network claims about Tripa Forest,” the bottom line remains: Cargill traffics a whopping 25% of the world’s palm oil and Cargill cannot ensure it is not trading palm oil from Tripa or parent companies profiting from the destruction of Tripa because it has no safeguards whatsoever in place to prevent it.

RAN released an official response to Cargill’s misleading claims last week with the following key points:

  • Cargill claims that it “does not import Indonesian palm oil to the United States.” This is pure obfuscation. By Cargill’s own estimate, nearly 90 percent of the world’s palm oil is sourced from Indonesia and Malaysia, and the company traffics 25 percent of the world’s palm oil. Cargill’s claim that it does not ship any Indonesian palm oil into the U.S. is misleading and insincere, as a percentage of Indonesia’s palm oil is refined in Malaysia before being shipped to the US.
  • Cargill also claims that it is not associated with the devastating fires raging throughout the Tripa rainforest of Indonesia. Cargill is hiding behind a shell game of shifting company ownership and complicated trade relationships between a web of subsidiary suppliers. However, the fact is that Cargill has a history of trading with at least one company that has profited from the destruction of the priceless Tripa rainforest.Trade data held by Rainforest Action Network shows that Cargill shipped at least 4,000 tons of crude palm oil produced by Astra Agro Lestari from the island of Sumatra in 2009. Astra Agro Lestari produced and exported palm oil from Tripa until at least 2010.According to Bloomberg, Astra Agro Lestari also sells millions of dollars of palm oil a year to industry giants Wilmar and Sinar Mas — two major suppliers of palm oil to Cargill. With a lack of supply chain transparency and no safeguards to prevent it, Cargill cannot in good faith claim never to have sold palm oil connected to the destruction of the endangered Tripa forest.
  • Cargill has an enormous influence to exercise on the global palm oil market. The only way Cargill can guarantee it is not contributing to the devastation underway in Indonesia is if it adopts explicit environmental, social and transparency safeguards to prevent it, which does not mean relying on a third party like the Roundtable for Sustainable Palm Oil (RSPO). It does mean taking responsibility for the practices of its suppliers. Cargill as a company has not articulated its values for its supply chain, meaning it does not publicly position itself against common abuses associated with palm oil production like slave labor and deforestation. Cargill has stated an intention to phase RSPO-certified oil into its global supply chain by 2020. However, the RSPO has at best a very spotty track record of enforcing its own rules to prevent tragedies like the one underway in Tripa. At the rate of destruction occurring today, 2020 is too little, too late for the forests, people and wildlife of Southeast Asia.

Just last week, Unilever, the world’s largest buyer of palm oil, announced a commitment to buy all of its palm oil, including its palm kernel oil, from traceable sources by 2020. Cargill’s modest commitments explicitly exclude palm kernel oil, an important commodity in the US market. Cargill also has no commitment to traceability, a crucial element for achieving transparency and accountability.

Cargill is showing an alarming failure to deliver on its time-bound commitments, including to secure RSPO certification for all of its palm oil plantations by the end of 2010, and completion of a survey and review of the practices of its palm oil suppliers by early 2011.

This post was originally published by Rainforest Action Network.