Nestle dumps palm oil supplier

Published: 11:54AM Thursday March 18, 2010 Source: Reuters/ONE News

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Food giant Nestle has stopped buying palm oil from an Indonesian supplier over environmental concerns.

The call comes after a report by Greenpeace on Wednesday about Nestle's use of palm oil in its products and how it was sourcing the oil.

On Thursday Nestle, the world's biggest food group, said it had stopped buying palm oil from Indonesia's Sinar Mas due to concerns about rainforest destruction, following a similar move by consumer goods firm Unilever.

Switzerland's Nestle, which uses the edible oil in its food products such as KitKat bars, said it had replaced Sinar Mas with another supplier for further shipments after conducting its own investigations into its palm oil supply chain.

"We will continue to pressure our suppliers to eliminate any sources of palm oil which are related to rainforest destruction and to provide valid guarantees of traceability as quickly as possible," Nestle said in a statement.

Greenpeace highlighted the practices of Nestle's suppliers' and their impact on rainforests, peatlands and the habitat of endangered orangutans in their report on Wednesday.

Anglo-Dutch Unilever, the world's largest user of palm oil, said in December it had suspended purchases from Sinar Mas on similar concerns.

Greenpeace alleges that Sinar Mas, Indonesia's biggest palm oil producer and the second biggest in the world, has been responsible for widespread deforestation and peatland clearance, practices which release vast amounts of carbon dioxide.

New Zealand's Green Party has renewed its campaign for mandatory food labels on products that contain palm oil.

Last year pressure from consumers caused chocolate manufacturer Cadbury to remove palm oil from its chocolate products.

Do you agree with Nestle's decision to stop buying palm oil from Indonesia? Have they gone far enough? Have your say on our messageboard

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  • philipmcc said on 2010-03-18 @ 16:29 NZDT: Report abusive post

    Absolutely I believe they have made the right decision! I and others have made our concerns known to Nestle, and it's great that are listening to the people who do not want economic growth while destroying our planet. Would that our own government would get its priorities right.

  • Karli said on 2010-03-18 @ 16:20 NZDT: Report abusive post

    Well if they really did decide to stop using it, I'd definitely support that (in fact might even eat a kit kat to celebrate the decision) but from what I understand that have NOT done this at all, and their new supplier is quite likely using the same dirty muck palm oil from what was once the orangutan's home forest. So no, they definitely haven't done enough, and minus ten points for greenwash and censorship. Gross video, very stupid decision to try and hide it... Kit kat bad bad.

  • gondwanan said on 2010-03-18 @ 15:50 NZDT: Report abusive post

    Nestle have done little more than spin doctoring so far and it's not enough. They admin more has to be done to stop the destruction of forests for palm oil, but havent made any real commitment. Nestle will still be using palm oil from Sinar Mas in KitKats, because theyll still be getting it from their other suppliers. Keep at em I say

  • katherinec said on 2010-03-18 @ 15:29 NZDT: Report abusive post

    This story is a bit wrong. Nestle have not agreed to stop sourcing palm oil from Indonesia. Not even nearly. They have suspended (read: suspended, not stopped) direct contracts with their major supplier Sinar Mas, but Nestle also buys the oil from third party suppliers and Sinar Mas supplies THEM, so palm oil still flows through their pipes and will still end up in products. Nestle has a long way to go until they've gone far enough.

  • David 11 said on 2010-03-18 @ 15:29 NZDT: Report abusive post

    The palm oil that Nestle is sourcing, is still coming from land where Indonesian rainforests used to be. Instead of going straight to Sinar Mas, they are going to a supplier that buys palm oil from Sinar Mas. I think this article is very misleading.

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