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2019/10/02

Kao Holds Dialogue with Small Oil Palm Farmers as Part of Efforts to Establish a Sustainable Palm Oil Supply Chain

Kao utilizes derivatives of palm oil and palm kernel oil mainly produced in Malaysia and Indonesia as raw materials for the products. As part of this, we are implementing activities to achieve sustainable palm oil production.
We have participated in the Stakeholder Engagement (SHE) Programme conducted by Caux Round Table Japan (CRT Japan). This year, we visited small oil palm farmers in Indonesia to conduct a dialogue with them. We also participated in a meeting with local NGOs that are working to address environmental and human rights issues.

Meeting with local Indonesian NGOs (July 24)

In Jakarta, we participated in a meeting with local NGOs that are working to address environmental and human rights issues. Discussions ranged from environmental issues in the development of palm plantations, to profit distribution in the supply chain, as well as activities aimed at resolving those issues.

SHE Programme in Indonesia (July 25)

In Jambi Province, we participated in a meeting with a group of small independent farmers not associated with any specific palm oil plantation company. This group was formed to receive the Group Certification*1 by the Roundtable on Sustainable Palm Oil (RSPO), and works under the guidance of a local NPO to improve farm management practices and engage in cooperative shipping. During the meeting, we also heard from farmers who are moving forward with their own palm replanting projects*2 with the cooperation of the government and local governments.

At Kao, we are striving to establish a sustainable palm oil supply chain and will continue to hold dialogue with small oil palm farmers to address their issues in collaboration with our stakeholders.

  • * 1 RSPO Group Certification
    Small independent farmers form a group with a leader and its management system to be certified by RSPO, a global, multi-stakeholder initiative on sustainable palm oil.
    RSPO verifies the parties that they obtain products through appropriate production.


  • * 2 Palm replantation
    As palm oil trees age, crop productivity drops, so preferably, they should be replanted every 20 years or so. With the cost of purchasing seedlings and an expected non-harvestable period of about five years, however, this places a significant economic burden on small farmers, and can interfere with efforts to improve farm management.

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