Adjustments will need to be made to sourcing strategies and supply chain management to ensure businesses comply with the new legislation in a very short space of time. Those buying palm oil from the EU or selling to customers in the EU will need to trace and prove the palm oil they use has not come from areas deforested since December 2020, which can be a complex and resource- intensive process.
Despite the short timescales, we are yet to see a working platform and are still waiting to hear exactly what kind of information will need to be provided - though it will almost certainly include map coordinates of the plantations the palm was grown on. The good news is that there is excellent traceability in the sustainable palm oil supply chain when compared to other commodities. There is good data available on RSPO (Roundtable on Sustainable Palm Oil) certified sustainable palm oil - and a new software platform for members that will make compliance significantly easier than with other commodities.
KTC - Looking ahead
KTC is well prepared for EU DR when it comes to palm oil. All the palm oil we supply is RSPO-certified segregated and we will be able to provide customers with the relevant data required for compliance. We’ve been using 100% RSPO-segregated certified sustainable palm oil since 2022 and have been an active member of the Roundtable on Sustainable Palm Oil (RSPO) since 2010. What we cannot control is the potential impact of this legislation on palm oil availability and commodity prices - which could be significantly affected. The increased sustainability
standards and additional
paperwork required could constrain market availability - and prevent some smallholders from accessing the EU market. This could also have a knock-on effect on other edible oils and fats. At the centre of the issue is the question about the inclusion of smallholders - how will the smallholders and smaller businesses who
don’t have the infrastructure to
comply be affected? An estimated 7 million smallholder farmers worldwide rely on oil palm cultivation, making up 40% of the palm oil industry in Malaysia and Indonesia - what will happen to them when the legislation comes in? And what’s to stop big companies from simply heading outside of the EU market
The EU Deforestation Regulation marks a pivotal moment for the baking industry and the use of palm oil. While
the regulation poses challenges, it presents a unique opportunity for the industry to champion sustainability and lead by example”
to get unregulated access to palm oil to solve their problems? Is the industry ready for such complex and fast-moving change? Sustainable practices with Planet Palm KTC Edibles is an industry leader in embracing sustainable palm oil practices, exemplified by the launch of Planet Palm. Planet Palm is the first pro-palm brand
and is RSPO-certified sustainable segregated, offering easy compliance with the incoming EU DR legislation.
Planet Palm is our commitment to sustainable palm oil. It’s about celebrating the benefits of palm oil while ensuring its production does not come at the expense of our planet. We work closely with suppliers who adhere to strict environmental standards, ensuring that our palm oil is sourced responsibly.
As part of our work with the RSPO, we’ve
helped smallholders improve the way they farm by providing high-quality training, guides, tools, and advice on agricultural best practices.
Navigating compliance
For businesses in the baking industry, ensuring compliance with the EU DR involves several strategic steps. Here are practical tips for navigating this regulatory landscape: Engage with Certified Suppliers: Partner
with suppliers who are certified by recognised bodies such as the RSPO. Certification ensures adherence to sustainable practices and simplifies the process. These companies will be able to provide you with the data you need. • Ensure Due Diligence: You need to supply a Due Diligence statement with every batch of goods you put on the EU market.
• Manage your Data: You’ll need to provide geolocation data about where your palm oil, soya, cocoa and coffee are sourced from. Having the right
technology or systems in place will make this much easier!
•
Adopt Sustainable Sourcing Policies: Develop and enforce comprehensive sourcing policies that prioritise sustainability. This includes setting clear guidelines for supplier selection and regularly auditing supply chains.
• Educate and Train Staff: Ensure that employees across the organisation understand the EU DR’s requirements and the importance of sustainable practices. Training programs can help staff identify compliance risks and implement best practices. Collaborate
• with Industry Peers:
Join industry groups and initiatives focused on sustainability like the RSPO.
shared resources,
Collaboration can lead to knowledge and
strategies for effective compliance and sustainable practices.
The EU Deforestation Regulation marks a pivotal moment for the baking industry and the use of palm oil. While the regulation poses challenges, it presents a unique opportunity for the industry to champion sustainability and
lead embraced these changes,
by example. At KTC, we’ve demonstrating
that sustainability and compliance are not mutually exclusive but rather complementary goals. As the baking industry adapts to the EU DR, it has the potential to drive significant positive change, creating a more sustainable and environmentally responsible global supply chain.
Gary Lewis
Sales Director KTC T: +44 (0) 121 505 9200
www.ktcoilsandfats.co.uk info@ktc-edibles.co.uk
bakeryproduction.co.uk
Kennedy’s Bakery Production June/July 2024
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