P&G, BASF, Cargill and GIZ to supply coconut oil in Philippines and Indonesia

Consumer goods firm Procter & Gamble (P&G) has entered a development partnership with BASF, Cargill and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) to enhance production of sustainable certified coconut oil in the Philippines and Indonesia.

Formed under the develoPPP.de programme by the German Federal Ministry for Economic Cooperation and Development (BMZ), the collaboration will work towards the establishment of a coconut oil supply chain in Southern Mindanao, Southern Leyte regions of the Philippines and Amurang, North Sulawesi of Indonesia.

P&G chemicals/flavour and fragrances vice-president Jack Ryan said: “We believe that transparency in our supply chain helps drive the sustainability of our coconut oil supply. 

“Our SCNO partnership will lead to better practices for our industry, and improved lives of the smallholders in our supply chain.”

The firms aim to work with smallholder farmers and teach them better practices needed for improved productivity, increased incomes and economic self-sufficiency.

Approximately 3,000 smallholder farmers in the Philippines and 300 in Indonesia are expected to benefit from the programme through training on good agricultural practices (GAP), intercropping and enhanced farm management skills.

Of the total farmers, 800 are slated to receive additional training on the Sustainable Agriculture Network (SAN) standards, enabling application for Rainforest Alliance certification.

Cargill will produce crude and refined oil, which will be processed by P&G and BASF for ingredients in the personal care, home, nutrition and health markets.

GIZ will collaborate with government agencies and leverage its expertise in capacity building on farmers’ level, as well as implementation of GAP and sustainability standards.

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Image: P&G, BASF, Cargill and GIZ to enhance coconut oil production. Photo: copyright © BASF SE.