Wilmar to sack Indonesian palm oil suppliers
Singapore-based agri-conglomerate Wilmar International said it will cease business relations with Indonesian firms that were allegedly involved in setting fires to clear land on their Sumatra plantations.
Wilmar has been named as one firm whose suppliers were responsible for the natural disaster that caused the worst air pollution in Southeast Asia ever. The share price of the Singapore-listed company suffered sizeable losses after its relations became public. Even though he company denied being involved in the fires on their concession territory, claiming it had a zero-burn policy, investors lost confidence, fearing possible legal proceedings that might have an impact on the firm’s mid-term performance.
The main problem in Indonesia is that farmers and small palm oil businesses often do not adhere to the fire ban as it is much cheaper to clear land by burning than with machines. Using machinery to clear costs more than $250 a hectare, while fires cost almost nothing.
Apart from Wilmar, other big agribusinesses such as Sime Darby, Golden Agri Ressources and Cargill said that they adhere to the Roundtable on Sustainable Palm Oil criteria formulated in 2004 which include a commitment to avoid clearing land with fires.
Singapore-based agri-conglomerate Wilmar International said it will cease business relations with Indonesian firms that were allegedly involved in setting fires to clear land on their Sumatra plantations. Wilmar has been named as one firm whose suppliers were responsible for the natural disaster that caused the worst air pollution in Southeast Asia ever. The share price of the Singapore-listed company suffered sizeable losses after its relations became public. Even though he company denied being involved in the fires on their concession territory, claiming it had a zero-burn policy, investors lost confidence, fearing possible legal proceedings that might have an impact on...
Singapore-based agri-conglomerate Wilmar International said it will cease business relations with Indonesian firms that were allegedly involved in setting fires to clear land on their Sumatra plantations.
Wilmar has been named as one firm whose suppliers were responsible for the natural disaster that caused the worst air pollution in Southeast Asia ever. The share price of the Singapore-listed company suffered sizeable losses after its relations became public. Even though he company denied being involved in the fires on their concession territory, claiming it had a zero-burn policy, investors lost confidence, fearing possible legal proceedings that might have an impact on the firm’s mid-term performance.
The main problem in Indonesia is that farmers and small palm oil businesses often do not adhere to the fire ban as it is much cheaper to clear land by burning than with machines. Using machinery to clear costs more than $250 a hectare, while fires cost almost nothing.
Apart from Wilmar, other big agribusinesses such as Sime Darby, Golden Agri Ressources and Cargill said that they adhere to the Roundtable on Sustainable Palm Oil criteria formulated in 2004 which include a commitment to avoid clearing land with fires.
