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SOURCING


SUSTAINABLE PALM OIL


Left: New Britain Oils’ £20m Liverpool facility


traceability to origin, and the proximity of its refinery to our Megalac factory in Liverpool reduces handling and transport costs.” New Britain Oils’ Andy Worrall comments: “We are delighted to


be supplying Volac with PFAD and to work with a new customer in a new sector for us that is also recognising the importance of sourcing sustainable palm. All the oil being refined in Liverpool comes from our RSPO Certified sustainable production operations in Papua New Guinea. Our parent company, New Britain Palm Oil Limited (NBPOL) was one of the first companies to be independently certified by the RSPO and was actually the first company to include smallholders within the scope of certification. Our supply chain is fully traceable back to only certified mills that are fully owned and operated by our parent company, and that is quite unusual within the global palm oil market. “NBPOL was awarded RSPO certification for sustainability in 2008


– NEW CHALLENGES FOR THE RUMINANT SECTOR


The quest for greater sustainability within the palm oil sector has taken a step forward. Papua New Guinean plantation owner, New Britain Palm Oil Ltd has opened a £20m facility in Liverpool which is the first global palm oil refinery dedicated to processing solely palm oil grades that can be traced back to an identifiable and sustainable source and delivered at an affordable price. The establishment of the refinery by New Britain Oils Ltd (NBOL)


was very much as a consumer driven initiative. Palm oil has become a staple product; it is a very versatile functional fat used in virtually all food categories. The Liverpool refinery will deliver segregated, traceable and certified sustainable food ingredients to meet the growing demand from NBOL’s end customers – consumer food goods companies primarily based in the EU. For the ruminant sector, dairy nutrition company, Volac International


is the real benefactor. The world’s first available segregated, fully traceable and certified sustainable palm fatty acid distillate (PFAD), a by-product from the palm oil refining at the Liverpool facility is already being incorporated into Megalac, the market leading rumen protected fat which improves dairy cow milk yield, body condition and fertility. The arrangement is anticipated to supply over 25% of Volac’s annual requirements for PFAD by 2012. “Previously, Volac International’s supply of PFAD was solely from


members of the Roundtable on Sustainable Palm Oil (RSPO) which was established in 2004 to promote the growth and use of sustainable palm oil products. Furthermore our FEMAS accredited supply is fully compliant with routine testing carried out for all relevant quality parameters,” explains Volac’s Jeannie Everington. “However we have a commitment to sustainable global food production and believe this can only be achieved by working closely with our customers, suppliers and the industry to set and achieve realistic and relevant improvement targets. “New Britain Oils has introduced new segregated oil with


after being independently audited against the nine core principles and 39 criteria that the RSPO use to define sustainable production. We see sustainability very much as part of our business and our core values. That’s why, for example, our policy on expansion for a number of years has been focused on either rehabilitating old estates, improving yields on existing plantations and among smallholders, as well as planting on low carbon areas like grasslands that were already part of the agricultural landscape. So in 2008, we purchased the company Ramu which has grassland suitable for conversion to palm. In 2010, we bought three plantations in Papua New Guinea with significant potential to increase output over the next few years. Optimising production yields and so reducing the pressure on biodiversity and carbon rich tropical forests is a key requirement of sustainability.


New Britain Oils’ Andy Worrall


“NBPOL is also investigating ways to support the wider socio-


economic, cultural and ecological landscape in which it operates through continuous multi-stakeholder dialogue and NGO engagement.” He adds: “NBO’s Liverpool refinery marks the final link from seed to


supplying manufacturers of consumer product - we’re becoming a food ingredient producer as well as an agricultural company. Establishing a competitively priced, fully traceable and sustainable supply chain for palm oil based products is our aim and intention with this Liverpool investment. If sustainable palm is to become mainstream then it will happen because of companies like us challenging the old supply chains and because of customers preferring to buy it when it’s available – just like Volac.”


FEED COMPOUNDER MARCH 2011 PAGE 23


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