CINCINNATI, Jul 24, 2014 (BUSINESS WIRE) -- Separating sustainable sources from non-sustainable sources in the production of palm oil and palm kernel oil is highly complicated, but Procter & Gamble [PG +0.29%] is stepping up to address the problem. The Company is conducting an in-field study to understand the practices of small farmers – and how those practices can be improved to protect local forests. P&G is partnering with the Malaysia Institute for Supply Chain Innovation (MISI) to field the study, fulfilling a commitment it made earlier this year as part of new goals to achieve zero deforestation in the palm oil supply chain.
“We want to make the sourcing of palm oil and palm kernel oil sustainable from start to finish -- and still economically viable for local farmers who depend on the crop to support their families,” said Len Sauers, Vice President of P&G Sustainability. “We already work with larger suppliers to trace the origin of our supply chain, but small farmers – in places like Malaysia and Indonesia – account for 35-45% of palm oil production. We need to understand their needs and practices so we can create innovative solutions to the problem, just like we understand the day-to-day lives of consumers to meet their needs with innovative products.”
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