Traceable & Sustainable Palm Oil Value Chain Design – Malaysia | Indonesia

In an ever-evolving global edible oils industry, the sustainability of palm oil are increasingly becoming mandatory and a huge focus is being placed on traceability. Over the past three to four years, Valuechainsolutions have assisted multiple FMCG multinationals in bringing transparency and granular understanding to their edible oils value chains.

More recently, we applied our Facts First approach to conduct a comprehensive palm oil value chain analysis, redesign and execution. Given the structure of the global palm oil industry and the concentration of production in Indonesia and Malaysia, Valuechainsolutions conducted an extensive in country analysis from farm through to end product in both Malaysia and Indonesia. Through our end to end approach, the client was actively able to achieve significantly enhanced levels of traceability back to farm level, which enabled a holistic sustainability of the value chain to be achieved.

Fresh Fruit Bunches (FFBs) just harvested from an oil palm plantation which has been established on peat land. Peat land planting and the management thereof receives large amounts of criticism from multiple lobby groups.

A simple peat land level monitoring solution.

Fresh Fruit Bunch (FFB) collectors play a vital role in the value chain and provide benefits to small holder farmers such as input financing and access to markets. Pictured is a FFB collector delivering FFBs to a palm fruit mill. These FFBs were sourced from multiple small holder farmers and aggregated by the collector.

Upon delivery to a palm mill, FFB’s are offloaded and checked for quality issues before being processed by the palm mill. These individual bunches can sometimes weigh up to 40 Kgs each!

In order for the fruit to separate from the bunch, FFBs need to first be steamed under high pressure in the palm mill. Pictured are a set of high-pressure steamers in a palm oil mill.

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