Our focus is to obtain FFB traceability data of all of our suppliers by 2016. We are using the volumetric approach to give a true reflection of actual percentage of oil that is traceable.
Currently our suppliers consist of two different categories:
We obtain the data from these smallholders through the support of our direct suppliers and our partners. Traceability lays the groundwork for us to identify the smallholders that we can engage for transformation process.
Due to Asian Agri’s commitment to sustainable sourcing for all of our buyers, we strictly prohibit any sources of illegal fresh fruit bunches (FFBs) from our suppliers. We have placed notification stating this commitment in every mill. The suppliers are properly informed of the company’s regulations, commitments and the consequences if illegal FFB sources are discovered. They are required to sign statement of warranty letter stating that their FFBs and their lands meet to our standards and regulations.
Thus, we have a CSV smallholders program which encourages independent smallholders to be trained the same way as our plasma smallholders. In order to become CSV smallholders, they are required to form a farmers group and have all of their legal documents of their lands. Once it is approved, they will be trained and developed on best management practices in oil palm industries. By doing so, not only we can establish a sustainability transformation among our suppliers but also they can be traceable.