QUESTION TIME
“Anybody arguing lack of availability must be talking to the wrong suppliers.”
Oil) certified sustainable oil produced annually is being bought as sustainable. Anybody arguing lack of availability must be talking to the wrong suppliers. If certain limited traceable grades of palm are not regularly easy to buy at affordable prices, then increased use of Mass Balance, in conjunction with setting transparent interim targets, will allow suppliers to know what and when they need to plan for, making future purchases simpler. Over 75% of the palm oil used in the UK's food industry could easily be part of an RSPO physical supply chain before the end of 2013. Supply can meet demand, as
long as the demand is there. Furthermore, GreenPalm certificates are an obstacle to the industry fulfilling these targets. Whilst they continue to be purchased at absurdly low values (c.$2 per tonne or 0.001% of the value of palm oil), albeit mostly by a few multinational players, this prevents shippers, refiners and downstream processors from making the necessary efforts to establish competitively priced, traceable (segregated) or Mass Balance certified supply chains. Companies must begin to actively differentiate and select the sustainable supply, at the expense of the non-sustainable. If it becomes a requirement of
business deals or winning a contract, then supply chains will quickly respond and prices will drop. Any “premium” for sustainable palm will always be non-existent or extremely low. More must also be done to improve the public perception of palm oil as a key ingredient in many foods enjoyed today – palm can be a good thing, provided it’s grown responsibly. Raising awareness will help drive conversion among the many thousands of UK businesses who currently use palm-based ingredients but may not be aware of the sustainability issues, or that their products even contain palm oil. The UK's fish and chip shops, many of whom like to fry in palm oil (or “vegetable oil” as it is frequently labelled), can now highlight that
Our industry experts provide a compelling insight into the topical issues of the day
THE EXPERTS...
ANDREW KYUK DIRECTOR OF SUSTAINABILITY, FDF
Andrew joined FDF in January 2009. He leads work on resource efficiency and reducing the environmental impacts of food
production to help deliver sustainable growth in the UK’s largest manufacturing sector and address the longer term challenges of food security. Prior to that he was a career civil servant dealing with a wide range of agricultural, fisheries, international trade and environmental policy issues.
ANDY WORRALL GENERAL MANAGER, NEW BRITAIN OILS
After running his own agriculture risk management consultancy business, Andy joined Pacific Rim Ltd in 2007 as Commercial Director. Part of Andy's current role is to act as General Manager of New Britain
Oils Ltd, the wholly owned subsidiary of New Britain Palm Oil Limited for whom Pacific Rim have acted as long term commercial agents. Andy has over 25 years of experience in agricultural commodities. Much of that time has involved trading the oils and oilseed markets, having spent 7 years with Cargill Europe and 8 years as Trading Director with what is now AAK UK.
they use sustainable frying oil. This, together with the revised ingredient labelling rules due in 2014, should help to shift the market towards sustainable supply chains.
Sustainable palm oil must be seen as the only solution, rather than an option. Food
manufacturers need to grasp the issues and view sustainable palm oil as a real and viable choice. The media also need to promote the positive effects of using sustainable palm and encourage conversion rather than just continuing to negatively highlight non- sustainable sources.
If you would like to contribute as a panelist email:
rebecca.goodacre@onecoms.co.uk
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