SIME Darby Plantation (SDP) said Italian confectionery giant Ferrero, which is reportedly planning to stop sourcing palm oil from the plantation, is not a customer and has not been for a while.

It said neither are General Mills and The Hershey Company, both mentioned in a Reuters report published earlier today.

However, it confirmed that direct customer Cargill suspended all new sourcing of palm oil and derivative products effective February 25.

“The supply of bulk products to Cargill in India has now been taken up by other customers. Nevertheless, SDP values all its customers and it is in discussions with Cargill on the latter’s decision.”

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

The confectionery company said it requested all direct suppliers to stop supplying it with palm oil and palm kernel oil indirectly sourced from SDP on April 6, until further notice.

The plantation said it has 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.

“Over the last several months, SDP has moved even further ahead, particularly in the area of labour rights.

“All stakeholders committed to sustainability and labour rights can be assured of our commitment and leadership in the industry.”

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

“We believe they will have an in-depth understanding and better appreciation of our commitment to safeguard the safety and well-being of workers through these engagements.” – Bernama, April 15, 2022.