Cargill begins work on $200 million Indonesian palm oil processing facility

The global Cargill group has confirmed plans to build a new US$200 million palm oil refinery in Lampung, Indonesia, targeting development of a sustainably-focused supply chain delivering verified deforestation free products, writes Neill Barston.

Its latest move follows in the wake of ongoing wider social and environmental performance monitoring work, including its recently released Decade of Impact Report, conducted with humanitarian organisation CARE, on supporting cocoa communities, addressing child labour, agricultural diversification and issues arising from climate change.

As the company explained, the new facility is set to play a central role in connecting sustainable crude palm oil production in Indonesia to demands in North America and Europe – which includes considerable use of oils within confectionery and snacks ranges. The site will enable a fully integrated supply chain from plantation to customer. With the new refinery, Cargill said it will be able to meet customers’ evolving expectations around sustainability and transparency by guaranteeing traceability to plantation and improved product quality standards.

Palm oil, an important ingredient in nourishing the world’s population, has experienced strong demand in recent years, with Indonesia as the largest producer and exporter. Palm oil is a high yielding and highly versatile oil that is not only used as cooking oil, but also used to create flavour and texture in many foods, and works as a stabilising, binding and foaming agent in many everyday household products.

Construction of the advanced new facility has commenced, and will be completed late next year. Palm oil from the Lampung refinery will be produced according to the principles set out in Cargill’s Policy on Sustainable Palm Oil and will help provide greater transparency through increased traceability-to-plantation.

“This project is a key step for Cargill to increase the availability of sustainably sourced and produced edible oil ingredients for our customers, helping Cargill to fulfil its purpose to nourish the world safely, responsibility and sustainably,” said Robert Aspell. The global Cargill group has confirmed plans to build a new US$200 million palm oil refinery in Lampung, Indonesia, targeting development of a sustainably-focused supply chain delivering verified deforestation free products, writes Neill Barston., President of Cargill Asia Pacific. “In addition, this fully integrated supply chain offers our customers assurance that stringent production requirements and the highest product quality are achieved.”

The refinery project in Lampung builds on Cargill’s mission to provide greater insight into the local and global palm supply chain and will further strengthen Cargill’s position as a supplier of choice for sustainable palm oil.

Shanghai showcase

Some of the company’s latest ingredients solutions have taken taken centre stage this week at Food Ingredients China 2021 (FIC 2021) under the banner of “Food Innovation for a Healthier Future”.

As the company explained, it has enjoyed growth with customers and consumers in China for 50 years, is presenting its latest insights into the Chinese food market and innovative product solutions at FIC 2021 to help customers gain an edge in an evolving food market and enhance its position as a trusted partner that nourishes the world in a safe, sustainable and responsible way.

The event in China allowed a number of product ranges to be showcased, including a chocolate brownie from Cargill’s premium Gerkens GB78 cocoa powder, and specialty sugar syrup and fats for baking.

According to the business, shifts in consumer attitudes and behaviours are driving a profound realignment in the food and beverage (F&B) industry. As a long-standing thought leader in the food ingredients market, Cargill tracks market dynamics closely and is sharing its proprietary perspective on global food & beverage trends in the form of the 2021 TrendTracker report at FIC 2021.

The report has identified four prevailing Macro Trends including:

Healthy for Me: Today’s consumers are taking a more holistic and proactive approach to health.

Conscious Consumption: Consumers want to buy products that align with their personal values.

Experience It: Consumers desire for more entertaining & exciting experiences in food consumption.
Simplify My Life: Consumers seek products and services that can help make lives easier, faster, and more convenient while ensuring well-being.

Corresponding with these Macro Trends, Cargill’s TrendTracker also pinpoints 10 food & beverage trends that are relevant for businesses. Due in large part to the impact of COVID-19, increased health and safety concerns have given rise to a more holistic approach to nutrition and wellness, including increased consumption of functional, immunity & mental wellness. Both premium and affordable products are expected to see greater opportunities in the marketplace as a result of value polarisation. In addition, refreshing experiences and enhanced convenience are also key to winning over consumers grappling with the impact of the pandemic.



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