How we work with Florin AG on vegetable oils
TFT are supporting Florin AG implement their Responsible Sourcing Policy for their raw materials inputs. The scope of the work with TFT includes Palm Oil from Cambodia and Solomon Islands, Peanut Oil from Senegal, Palmkernel and Coconut oil from Solomon Islands and Sunflower Oil from Uganda, Tanzania, Mozambique and Hungary
August 2017 - visit to Tanzania
In June 2016 TFT visited one of Florin’s crude sunflower oil producers in Tanzania. The purpose was to introduce Florin’s policy requirements, better understand where the sunflower was being grown and what environmental and social challenges existed in the area. We also wanted to take a look at any labour, traceability, HR or grievance issues there might be at the crushing mill.
The visit revealed that the mill is sourcing from tens of thousands of smallholder farmers. Many of these smallholders have been engaged with the supplier since the 1980s, when sunflower was introduced as a cash crop. This brought access to the market for the smallholder farmers and helped increase living standards and livelihoods.
Our visit was the first time the supplier had heard about some of the environmental and social requirements of Florin, and whilst some positive elements were already in place, a detailed action plan was left with the company to address in order to improve practices and their business.
A year on, our follow up visit in August 2017 revealed positive progress. Real improvements were seen at the management level, where staff have dedicated time and resources to understand the requirements and taken ownership of the actions. This has lead to positive impacts at the mill level in terms of the local environment as well as health and safety requirements, the provision of personal protective equipment and HR procedures. The company’s thinking is also evolving when it comes to their sourcing model and how to map and monitor the dealers and farmers they source from, to know how many farmers are in their supply as well as identify particular issues and challenges they are grappling with. The idea is that this then leads to activities such as increasing support and capacity of farmers on farming practices, and where other support and solutions might be needed and help monitor impact.
There is still much to do but this was a positive start to the company’s journey that is already showing results, and we look forward to the continued commitment to build on these developments in the coming months and year.
Current work plan and progress
The strategy continues to identify the origins of the diverse range of raw materials that Florin purchase to better understand any potential risks to meeting their Responsible Sourcing Policy and search for opportunities to improve practices, capacities and resilience
Summary of progress on 2016 workplan
- Tanzanian Sunflower Oil Supplier Assessed – action plan developed and follow up visit planned for 2017
- Follow up activity with Solomon Palm Oil producer for High Carbon Stock Assessment completed – additional activities to be addressed in 2017
- Follow up activity with Solomon Coconut Oil producer completed at mill level – additional activities to be addressed in 2017 with smallholders
- Follow up visit to Senegalese Groundnut Oil producer completed – additional activities to be addressed in 2017
- Follow up visit to Ugandan Sunflower Oil supplier not completed – address in 2017
- Assessment of Hungarian Sunflower Oil supplier not completed – address in 2017
- Business to Business Palm Oil communication piece produced
Summary of 2017 workplan
- Follow up visit to Tanzanian Sunflower Oil supplier to accompany action plan progress and identify key transformative and verification activities
- Follow up visit to Senegalese Groundnut Oil supplier to accompany action plan progress and identify key transformative and verification activities
- Two follow up visits to Solomon Islands Palm Oil producer to support High Carbon Stock (HCS) and Social Impact Assessment (SIA) process and procedures
- Developing workplan for engaging smallholder coconut producers in Solomon Islands
- Follow up visit to Ugandan Sunflower Oil supplier to accompany action plan progress and identify key transformative and verification activities (2016 carry over)
- Hungarian Sunflower Oil supplier assessment (2016 carry over)
- KPIs to show ongoing progress
Raw material input
Raw Material Input 100% (converted in crude oil quantity)
- 35% – Swiss Seeds (Rape, Rape HOLL, Sunflower, Sunflower HOLL, Soja), converted in crude oil
- 45% – Imported crude oils in scope with TFT’ (Ground nut oil, Sunflower oil, Sunflower HO oil, Palm oil, Coconut oil, Palm kernel oil)
- 10% – Imported RSPO RBD oils (Palmstearin RSPO-SG & Palmkernelstearin RSPO-SG, Palm oil RBD RSPO-SG, Special Fractions RSPO-SG)
- 2% – Organic oils (Bio Palm RSPO-SG, Bio Soft oils)
- 8% – Other imports (Olive oil, animal fats, refined soft oils from EU refinery)