With more than 600 mills, a dozen refineries, and thousands of smallholders, the palm oil supply chain is complex - and we have set out on the journey to tackle this complex challenge and achieve full traceability.
As a vertically integrated palm oil company, the majority of the palm products processed by our refineries originate from Sime Darby Plantation (SDP) mills which are certified to the Roundtable on Sustainable Palm Oil (RSPO). The remaining palm-based raw materials are sourced from third party producers and traders.
Traceability to Plantations & Mills
A plantation and mill is considered traceable if the following information is complete.
- Parent Company name
- Name of Mill/Plantation
- Sustainability Certification Status
- Longitude and latitude coordinates
Achieving this visibility on plantations and mills is the next major step toward full supply chain traceability. It allows us to check coordinates against our mapping of the landscape to determine if our plantations or mills are located in a high-risk area. It also allows us to detect associated risks through its link to other business partners that we may not source from directly. In addition to facilitating monitoring using satellite imagery, that helps guide and prioritise our actions in mitigating issues within the supply chain.
As of December 2019, 83% of our fresh fruit bunch supply comes from our own plantations, while 17% are externally sourced crops. Of this external supply, 69% is supplied directly from plantations made up of estates, smallholders and small growers. 31% is supplied through traders and collection centres, only in Malaysia.
94% of our directly supplied fresh fruit bunches are traceable to plantations.
The supply chain of SDP owned mills globally
Figure shows the number of plantations, traders, collection centres and smallholders supplying to our own mills as of 2019.