Business

Ferrero not a customer: Sime Darby Plantation

Confectionery company earlier says it will cease buying palm oil from latter over forced labour allegations

Updated 4 years ago · Published on 16 Apr 2022 8:27AM

Ferrero not a customer: Sime Darby Plantation
Sime Darby Plantation Bhd confirms that its direct customer Cargill has decided to suspend all new sourcing of palm oil and derivative products from it, effective February 25, 2022. – Bernama pic, April 16, 2022

KUALA LUMPUR – Sime Darby Plantation Bhd (SDP) said that Italian confectionery firm Ferrero, which is reportedly planning to stop sourcing palm oil from it, is not its customer and has not been for a while.

Neither are General Mills and The Hershey Company, which are also mentioned in the Reuters news report published earlier today, the plantation company said in a statement.

However, SDP confirmed that direct customer Cargill has decided to suspend all new sourcing of palm oil and derivative products from it, effective February 25, 2022. 

“The supply of bulk products to Cargill in India has now been taken up by other customers. Nevertheless, SDP values all our customers and we are in discussions with Cargill on its decision,” it said.

According to the Reuters report, Ferrero said it will stop buying palm oil from SDP over forced labour allegations.

In an email to Reuters, Ferrero said that on April 6, it requested all direct suppliers to stop supplying Ferrero with palm oil and palm kernel oil sourced indirectly from SDP, until further notice.

SDP said it had committed to sustainable development and responsible business practices about 15 years ago. 

“We take these commitments very seriously and have maintained a leadership position in the industry for well over a decade.

“Having said that, over the last several months, SDP has moved even further ahead, particularly in the area of labour rights. 

“With all the measures that we have revised or instituted, some of which were published in our press release dated February 15, 2022, all stakeholders who are committed to sustainability and labour rights can be assured of SDP’s commitment and leadership in the industry,” it said.

SDP also said it is in regular communication with all its key stakeholders, particularly customers who have their own commitments. 

“Through these engagements, we believe they would have an in-depth understanding and a better appreciation of our commitment to safeguard the safety and well-being of workers,” it said. – Bernama, April 16, 2022

Related News

Business / 2y

China committed to increasing palm oil imports next year, says Fadillah

Malaysia / 2y

Anwar, Dutch PM Rutte meet in Putrajaya for bilateral talks

Malaysia / 2y

M’sia to rope in foreign scientists, experts to mend palm oil image: Fadillah

Business / 2y

Boost for M'sian palm oil from African buyers with RM182 mil in potential sales

Business / 2y

‘Industry players seeking windfall profit levy price review for Sabah, S’wak’

Business / 3y

Palm oil exports to EU-27 to surpass 1.5 mil tonnes: MPOC

Spotlight

Malaysia

After Johor, the uncomfortable question for Anwar’s critics: Were we too impatient?

By The Vibes Says

Malaysia

Network School's business licences revoked, to cease operations tomorrow

Opinion

Orang Asli in Pahang: Token gestures or genuine recognition?

Malaysia

Tuition teacher sentenced to 105 years in prison and 70 lashes for raping daughter

Malaysia

Azam Baki denies involvement in RM178.29 million contract linked to brother’s company

Malaysia

Aminuddin urges NS voters to weigh manifesto promising benefits for M40 and B40 groups

Malaysia

No need to resign, PM has absolute power if there is doubt – Ahmad Zahid

World

Gaza’s water crisis deepens as families face thirst, disease and collapsing sanitation systems

You may be interested

Business

Govt boosts SME digitalisation support with new smart manufacturing co-investment scheme

Business

Malaysia posts record RM340.9 billion trade in June as exports jump 45.4%

Business

Oil prices rally above US$84 per barrel as US-Iran conflict deepens

Business

Central bank policies remain crucial in shaping currency market movements

By Alfian Z.M. Tahir

Business

Oil prices near five-week high as US-Iran conflict fuels supply concerns

Business

Plastics industry faces tough year as raw material volatility add to cost pressures