World’s Top Supply Chain Experts Working with Local Farmers to Improve Practices
CINCINNATI. - Friday, July 25th 2014 [ME NewsWire]
(BUSINESS
WIRE)-- Separating sustainable sources from non-sustainable sources in
the production of palm oil and palm kernel oil is highly complicated,
but Procter & Gamble (NYSE:PG) is stepping up to address the
problem. The Company is conducting an in-field study to understand the
practices of small farmers – and how those practices can be improved to
protect local forests. P&G is partnering with the Malaysia Institute
for Supply Chain Innovation (MISI) to field the study, fulfilling a
commitment it made earlier this year as part of new goals to achieve
zero deforestation in the palm oil supply chain.
“We want to make
the sourcing of palm oil and palm kernel oil sustainable from start to
finish -- and still economically viable for local farmers who depend on
the crop to support their families,” said Len Sauers, Vice President of
P&G Sustainability. “We already work with larger suppliers to trace
the origin of our supply chain, but small farmers – in places like
Malaysia and Indonesia – account for 35-45% of palm oil production. We
need to understand their needs and practices so we can create innovative
solutions to the problem, just like we understand the day-to-day lives
of consumers to meet their needs with innovative products.”
“This
is a complex supply chain involving thousands of small farmers who
interact with others, so the product changes hands many times between
the growers, traders, millers, buyers, and ultimately the purchasing
company. As a result, separating sustainable sources from
non-sustainable sources is almost impossible. We are targeting zero
deforestation by fostering an inclusive ecosystem that supports small
farmers’ challenges,” said Mahender Singh of MISI, a global leader in
supply chain management and logistics.
In April, P&G
announced new goals to help ensure zero deforestation in its palm oil
supply chain. The goals call for traceability of palm oil and palm
kernel oil to supplier mills by December 31, 2015, and to plantations by
2020. The six-month study announced today supports these goals and will
enable P&G to understand the small-farmer supply chain and how best
to help local growers. The Company will report the findings and develop
an action plan to address them by the end of September 2014. MISI is
helping to facilitate this research and will work with P&G to
develop the action plans.
The goals also call for P&G to
extend work with suppliers, industry peers, NGOs, academic experts and
other stakeholders to promote industry-aligned standards and practices
for sustainable palm oil sourcing.
“We are working in partnership
with industry experts, large suppliers and small farmers to make a
significant and lasting impact. In support of this commitment, we will
develop tools and best practices that we can share with other companies
facing the same opportunities we’re facing in establishing traceability
from farm to purchase,” said Dr. Sauers.
About MISI
Located
in Shah Alam, Malaysia, MISI is the fourth center in the MIT Global
SCALE (Supply Chain and Logistics Excellence) Network. It is a joint
initiative between the Massachusetts Institute of Technology (MIT) and
the government of Malaysia and is an international alliance of
leading-edge research and educational organizations, dedicated to the
development and dissemination of global innovation in supply chain and
logistics.
About Procter & Gamble
P&G serves
approximately 4.8 billion people around the world with its brands. The
Company has one of the strongest portfolios of trusted, quality,
leadership brands, including Always®, Ambi Pur®, Ariel®, Bounty®,
Charmin®, Crest®, Dawn®, Downy®, Duracell®, Fairy®, Febreze®, Gain®,
Gillette®, Head & Shoulders®, Lenor®, Olay®, Oral-B®, Pampers®,
Pantene®, SK-II®, Tide®, Vicks®, Wella® and Whisper®. The P&G
community includes operations in approximately 70 countries worldwide.
Please visit http://www.pg.com for the latest news and in-depth
information about P&G and its brands.
To learn more about P&G’s Palm Oil Commitment click here: P&G Sustainability/Palm Oil
Contacts
P&G Media Contact
Paul Fox, 513-983-3465
fox.pd@pg.com
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