As an exclusive upstream producer, our main suppliers are FFB suppliers, delivering fruit to our mills. There are three types of fruit suppliers; associated smallholders under a plasma scheme, larger outgrowers without a mill of their own or with excess fruit, and independent smallholders (defined as growers with less than 50 hectares of plantings). Most external fruit is delivered directly by the smallholders and outgrowers, with a small proportion through FFB traders. And the origin of fruit changes daily, making traceability complex.
As part of our NDPE commitment, we are launching a programme to achieve full traceability of all FFB processed to estate level. We will pursue our traceability objectives by:
- Tracking and monitoring land development in sensitive areas;
- Developing a "supply shed" approach to map out the supply base of each of our CPO mills. The supply shed approach will include conducting survey of traders and independent smallholders that supply FFB to our mills and assisting them to comply with our policy. We will communicate with stakeholders in our supply shed to inform them about our sourcing policy regularly;
- Ensuring FFB processed by our mills is traceable to our own estates and plasma smallholders;
- Ensuring that FFB is purchased from legal and responsible sources; and
- Working with all supply chain stakeholders including the local traders and smallholders on FFB traceability.