Kellogg says it will only purchase palm oil from the company and will not rely on the destruction of tropical rain forests to produce additives used in many processed foods.
The grain giants responded that due to the long-term pressure of environmental groups, the food industry has replaced palm plantation with Southeast Asia. The activities of tropical rain forests are mainly in Indonesia. There are many endangered species in the forest such as orangutans and Sumatran tigers. Palm oil cultivation has destroyed more than 30,000 square miles of tropical forests in Indonesia and Malaysia, said a leader who initiated reforms.
Kellogg, based on Battle Creek, announced last week that it will require its suppliers to track their palm oil plantations and have been independently confirmed to comply with legal and conference standards to protect the environment and human rights. The policy also applies to processors and growers, said Diana Holdorf, Kellogg's chief environmental officer.
“We must ensure that they all produce palm oil in a way that is environmentally responsible, socially beneficial, and economically viable.†Holdorf said Tuesday.
The news was praised by environmental groups and held a rally with the Kellogg headquarters in November and met with company representatives. They described the new policy. Due to the difficulties of the industry, they required compliance or substantial progress by December 31, 2015.
“Kellogg sent a strong message that traceability of palm oil production, deforestation and the absence of palm oil-free exploitation are core conditions for entering the global market,†said Deborah Lapidus, a group’s campaign director. .
Palm oil generates 50 billion U.S. dollars annually, about half of which is used for packaging all foods. According to Green Century Capital Management, it filed a shareholder proposal last year urging Kellogg to insist that deforestation is oil-free. The investment company stated that the United States’ imports have almost quadrupled in the past decade.
Environmental groups also praised Kellogg for influencing its joint venture partner, Fengyi International Co., Ltd., the world’s largest trading company for palm oil. The company announced in December that its plantations and suppliers will protect forests with high conservation value, prohibit the use of fire to remove peatlands, and prohibit development.
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