KEY INDUSTRY PLAYERS JOIN FORCES TO DRIVE SUSTAINABLE COCONUT OIL PRODUCTION

Four key industry players, BASF, Cargill, Procter & Gamble (P&G) and the Deutsche Gesellschaft for Internationale Zusammenarbeit (GIZ) GmbH, have come together to drive the production of sustainable coconut oil in the Philippines and Indonesia.  They are collaborating on the project which will create a sustainable, transparent and certified supply chain of coconut oil. 

The project is in collaboration with the ‘develoPPP.de’ programme launched by the German Federal Ministry for Economic Cooperation and Development (BMZ).  The develoPPP.de programme aims to provide training for local employees, promote the use of climate-friendly technologies and to improve social standards at production facilities.  It works alongside companies with projects in developing countries to ensure sustainable international business commitment are met.  

The collaboration will focus on Southern Mindanao and Southern Leyte in the Philippines and Amurang in North Sulawesi, a province in Indonesia, as these countries are the two largest producers of coconuts and exporters of coconut-based products.  In the Philippines and Indonesia, most farmers are smallholders with less than four hectares of land, meaning there are little or no economies of scale, a lack of financing and training resources, as well as a rigid supply chain.  BASF, Cargill, P&G and GIZ are hoping to work alongside farmers and to train them in hopes they will be able to increase their incomes and self-sufficiency due to having more productive farms.