Kellogg Boosting funds to Sustainable Palm Oil Producers
March 12, 2011, 10:05 pm
Filed under: Uncategorized

Despite the ability to buy and use sustainable palm oil for its cereal and snack lines, the Kellogg Company is doing what it can to increase the amount of sustainable palm oil being made.

The company will purchase enough GreenPalm certificates to equal the amount of palm oil it uses around the world until it’s able to buy sustainably-made palm oil for its products.

Palm oil producers that are certified by the Roundtable on Sustainable Palm Oil receive a certificate for every ton of palm oil they make sustainably. Then the producers put the certificates up for sale on the GreenPalm trading site, and companies have the opportunity purchase the certificates to support the farmers.

Kellogg, which uses about 0.1 percent of the global palm oil supply, says that a segregated supply of sustainable palm oil is not available outside of Europe, and the palm oil it does use in Europe is not available in a segregated supply. As GreenPalm explains on its website, “…palm oil supplies from different plantations, mills and even countries are intermingled at each stage of the production and delivery process. Under normal circumstances it is therefore impossible for palm oil purchasers to know exactly where their oil has come from and how it has been produced.”

Kellogg will be pushing its suppliers to increase the amount of sustainable palm oil they purchase in blended supplies, and will move toward buying segregated sustainable palm oil once there is a “financially and logistically feasible” supply available.

It’s refreshing to find a company that cares about creating sustainable products, even if they themselves are unable to use the product at this time.  Simply having a company like Kellogg backing the sustainable movement in one way or another, helps the entire industry gain momentum, as a company of Kellogg’s size brings sustainability to the foreground.


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