Palm oil using manufacturer constraints impact Indonesia’s forests

An article in Bloombergbusinessweek (June 3,2013) describes sourcing restrictions for palm oil by Nestle, Unilever and Cargill which bans palm oil grown in virgin rain forest land. The impact is a move by the Indonesian government to ban virgin rain forest plantation across the country to preserve palm oil markets. But conflicting local definitions of virgin rain forest land means uncertain sourcing verification. This is also causing manufacturers to move production out of the country to Sub-Saharan African locations with poor enforcement. Is the global supply chain impact of palm oil sourcing beneficial or should palm oil use be reduced to save the rain-forests? Should manufacturers develop standards to define appropriate sourcing or leave it to local governments to develop such definitions ?

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About aviyer2010

Professor
This entry was posted in Global Contexts, Supply Chain Issues, Sustainability and tagged , , , , , , , , . Bookmark the permalink.

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