Johnson & Johnson first certified for "sustainable" palm oil procurement
Play
Johnson & Johnson, the world's leading health care company, won the purchasing deal of RSPO certificates under the Book and Claim system* from Thailand's four independent oil palm smallholders' groups, the first in the world to be certified with the RS
Adherence and certification to RSPO Principles and Criteria provides rigorous assurance that palm oil is cultivated and processed in a sustainable and responsible manner. The certification of the first groups of independent smallholders is a major step forward for Thailand’s palm oil industry.
The four groups of Thai smallholders were among the pilot independent smallholders taking part in the "Sustainable Palm Oil Production" project, which received RSPO certification in October 2012. The 3.5 year project (January 2009 – June 2012) was funded by the German Federal Ministry for Environment, Nature Conservation and Nuclear Safety and implemented by German International Cooperation (GIZ) and the Office of Agricultural Economics under Thailand’s Ministry of Agriculture and Cooperatives. During the course of the project, the income of the Thai palm oil industry increased by up to 40 million baht, significantly from the reduction of the production costs. Farmers are now even receiving a price premium for their certified products. The participating mills, which provided considerable support to the farmers also financially benefited by increased Oil Extraction Rate (OER). There is huge potential for further up-scaling in the Thai Oil Palm Industry, as ‘only’ 412 smallholders have been certified, managing overall 2.767 hectare of plantation and producing about 52.000t of Fresh Fruit Bunches (FFB) per year.
Darrel Webber, Secretary General of RSPO, commented "As the third largest producer of crude palm oil (CPO) in the world, more than 70 per cent of oil palm in Thailand is produced by independent smallholders. Without certification, it is now difficult to compete in the world market. Because of the increased demand for environmentally friendly products from consumers, more and more manufacturers using palm oil as a raw material are looking for certified palm oil. However, there are challenges, and the smallholders need assistance to become certified. We are therefore pleased to have more partners from the manufacturer side like Johnson & Johnson to assist the smallholders to achieve their RSPO certification."
"We are convinced that both parties have signed a very supportive agreement and we are proud to have been able to assist them all. We sincerely hope that the farmers continue their way of sustainable production and achieving benefits from good agricultural practices as well as from certification," added Daniel May, Director of the Sustainable Palm Oil Production for Bio-energy Project, GIZ.
