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Norway's Orkla to source sustainable palm oil

FBR Staff Writer Published 20 March 2014

Norwegian conglomerate Orkla plans to source sustainably produced palm oil for use as an ingredient in its consumer products.

Palm oil is a widely used vegetable oil across the world with around 87% of it coming from Indonesia and Malaysia where expanding production led to deforestation, the company said.

Orkla executive vice president Håkon Mageli said, "We are committing ourselves to breaking the link between our products and deforestation.

"Wherever possible, therefore, we will replace palm oil with alternatives that are better from a health and environmental perspective."

According to the company, it has reduced the use of palm oil by 15,000t since 2008.

Mageli said that replacing palm oil with an alternative requires years of product development and it is not feasible with some products.

"Where it is impossible to replace the palm oil, we aim to buy only palm oil that is sustainably produced."

Orkla Foods, a subsidiary of Orkla, offers bakery, fruit and berry and snacking products, among others.