Unilever Stays Away From Indonesia Palm Oil Planter

Unilever, the world’s top palm oil buyer, has instructed dealers to stay away from palm oil sourced from Indonesian planter, Duta Palma, over its concerns about rainforest destruction, according to an Indonesian industry official. This move comes after BBC revealed Duta Palma allegedly clearing forests illegally, and is the second bid against Duta Palma in three months.

The Consumer giant blacklisted Duta Palma just two months after it stopped a US$33 mill supply contract with Indonesia’s largest producer, PT SMART.

The BBC documentary showed footage of Duta Palma staff clearing rainforests for oil palm estates that produce the vegetable oil used in Unilever products. The documentary also cited Unilever as saying it would stop buying palm oil from Duta Palma.

According to the accompanying BBC news report, Indonesia is the world’s third largest emitter of greenhouse gases, behind only the and China.

In the documentary, the BBC team use use GPS technology and satellite imaging to pinpoint exact locations where palm oil giant, the Duta Palma Group, is logging on both high conservation lands and deep peat lands – both are said to be illegal.

Green activisits and consumers have rallied on European businesses, such as Unilever, saying these businesses’ palm oil suppliers are responsible for deforestation and peatland clearence that can speed up climate change.

Officials from Duta Palma and Unilever were not immediately available for comment.

Unilever said last year that an independent audit of palm oil suppliers in early 2009 had highlighted areas of concern to be addressed on an individual basis.

According to some, Unilever’s latest action could make it difficult for businesses to work together in the main industry body aimed at improving palm oil’s green standard, the Roundtable on Sustainable Palm Oil (RSPO), as its action creates suspicion between buyers and suppliers. Both Duta Palma and Unilever are members of RSPO.

For more on Duta Palma, read a 2009 report by David Gilbert for the Rainforest Action Network.

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