IGPN - International Green Purchasing Network

August 18, 2016

How BASF, Henkel Are Supporting Smallholders to Secure Supply of Sustainable Palm Oil

August 18, 2016
by Sustainable Brands

In recent years, palm oil has arguably become one of the world’s most ubiquitous and contentious raw materials in the consumer goods industry. When conventionally produced palm oil and palm kernel oil are used, there are significant economic, environmental and social impacts along the entire supply chain – from field to shelf. Small farms produce roughly 40 percent of the world’s palm and palm kernel oil; an important question for the oil-producing countries is how to increase the yields from the land already under cultivation. This is why chemical giants Henkel and BASF – both of which use palm oil in a variety of their cosmetic and home care products – are collaborating with the development organization Solidaridad to support a project in Indonesia and advocate for smallholders and local initiatives.

Trainings for roughly 5,500 farmers

Sustainable farming methods, efficient production and high occupational health and safety standards are some of the most important conditions for certified palm oil production. Smallholders can learn how to fulfill these requirements locally in dedicated training programs. Since 2015, Henkel has been supporting the 5-year-project in the Indonesian province of West Kalimantan. Earlier this year, BASF joined the effort as an additional industrial partner. The smallholder program was implemented by Solidaridad in cooperation with its partners, Australian NGO Good Return and Credit Union Keling Kumang (CUKK). Good Return coaches and supports the teachers who carry out the trainings on the ground and who will continue the farmer support program after the project ends. The teachers are employees of CUKK, the second-largest local credit organization in Indonesia.

Read more at Sustainable Business.

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