FGV achieves 81% FFB traceability, on track for 100% by Q4 2021


FGV Holdings Bhd has achieved 81 per cent of traceability to plantation (TTP) of its fresh fruit bunches (FFB) to date and is on track to achieve its target of 100 per cent by the fourth quarter (Q4) of 2021.

In a statement today, the country’s leading palm oil producer said the traceability initiatives were aimed at ensuring that the FFB sourced were not linked to deforestation, planting on peat and open burning, in line with the group’s sustainability policy and the “No Deforestation, No Peat and No Exploitation” commitment.

Group chief executive officer Datuk Haris Fadzilah Hassan said tracing FFB to the plantations of origin presented a set of challenges attributed to the complexity of the supply chain in FFB traders’ network.

“This is due to the fact that FGV sources two-thirds of its FFB from external suppliers comprising FELDA settlers, independent smallholders as well as FFB traders, while only one-third of FFB are sourced directly from our own estates.

“Therefore, achieving TTP beyond 80 per cent is a huge milestone for us,” he said.

As of October 2020, 28 per cent of FGV’s FFB supply were sourced internally from its estates, while 72 per cent externally.