Ferrero are not our customer, says Sime Darby

Ferrero are not our customer, says Sime Darby

The oil palm giant responds to reports that the Italian confectionery firm planned to stop sourcing palm oil from it.

Sime Darby Plantation Bhd says two other companies, General Mills and Hershey, are also not direct customers.
KUALA LUMPUR:
Sime Darby Plantation Bhd (SDP) said that Italian confectionery firm Ferrero, which is reportedly planning to stop sourcing palm oil from it, is not a direct customer and has not been for a while.

The Reuters news agency reported today that Ferrero had said it had requested all direct suppliers to stop supplying Ferrero with palm oil and palm kernel oil sourced indirectly from SDP until further notice.

According to the Reuters report, Ferrero said it will stop buying palm oil from SDP over forced labour allegations.

SDP confirmed in a statement today that a direct customer, Indian food and agricultural group Cargill had suspended sourcing palm oil and derivative products from SDP from Feb 25.

“The supply of bulk products to Cargill in India has now been taken up by other customers. We are in discussions with Cargill on its decision,” the company said.

SDP said it had moved further ahead in the area of labour rights with measures that had been revised or instituted.

Besides Ferrero, the Reuters report also mentioned US food giants General Mills and Hershey. SDP said neither company was a direct customer.

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