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INDOFOOD AGRI RESOURCES LTD
SUSTAINABILITY REPORT 2014
THE IMPORTANCE OF
SUSTAINABLE SOURCING
From a food safety perspective, it is crucial for food and
agricultural companies to be able to demonstrate the
sustainability and traceability of their products and raw
materials. To establish full traceability, companies are
increasingly extending their sustainability strategies and
practices across their full supply chain.
MANAGING TRACEABILITY
ACROSS OUR EDIBLE OILS SUPPLY CHAIN
Tracing the origins of the CPO, the primary raw material used
in our edible oil refineries is an important priority. Today, we
are able to trace all FFB that arrive at our oil palm mills to the
nucleus and managed plasma plantation and field where it had
been planted. As part of our Smallholder Programme, we have
introduced a barcode tracking system so that we can trace
the FFB shipments from our plasma farmers, and identify the
Koperasi Unit Desa (KUD) or farming organisations to which
individual farmers belong.
In 2014, our plantations supplied approximately 70% of the
CPO requirements of our refineries, all of which can be traced
to individual mills and the plantations that supplied to them.
In Medan, our refinery is supplied 100% by RSPO
-
certified
CPO from our estates.
Each consumer product that leaves our refineries bears a
batch number, which can be traced back to the production
line, place of manufacture, CPO source and when it was
produced.
We will continue to focus on and improve our product
traceability along the whole supply chain, not just for CPO,
but also for all other major raw materials.
BARCODING OF THE BLRS SEEDS
To help plantation owners verify the source of our seed
material, each oil palm seed that is produced at SumBio,
our research and development centre in Bah Lias, North
Sumatra, and Pekanbaru, Riau, is marked “BLRS”as a stamp
of authentication.
We also barcode each batch of germinated seeds to improve
the data management and traceability of the oil palm
seeds. The barcode allows the buyer to check with IndoAgri
to confirm the origin and other details of each batch of
germinated seeds. This provides assurance to the buyer
on the authenticity and quality of the seeds purchased,
enhancing their confidence in our brand.
Sustainable sourcing is a core focus in IndoAgri’s supply chain
management. We aim to trace all of the FFB, rubber, sugar
cane, cocoa and tea processed in our factories to how they were
cultivated and farmed in our nucleus or plasma plantations –
down to precise fields where they were harvested. To achieve this
mission, we are building inclusive supply chains by proactively
engaging our smallholders and third
-
party suppliers.
